<PAGE>
- --------------------------------------------------------------------------------
ANNUAL REPORT
THE HIRTLE CALLAGHAN TRUST
June 30, 1997
We are pleased to present the June 30, 1997 annual report for The Hirtle
Callaghan Trust.
The Hirtle Callaghan Trust ("the 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, selected
by, and under the general supervision of, the Trust's Board of Trustees.
Shares of the Trust are available exclusively to investors who are clients of
Hirtle Callaghan or clients of financial intermediaries, such as investment
advisers, acting in a fiduciary capacity with investment discretion, that have
established relationships with Hirtle Callaghan.
The Trust currently consists of five separate Portfolios, listed below:
- --------------------------------------------------------------------------------
THE PORTFOLIOS
THE VALUE EQUITY PORTFOLIO, seeks total return by investing in a
--------------------------
diversified portfolio of equity securities of large companies with
relatively low price-earnings ratios and high dividend yields.
THE GROWTH EQUITY PORTFOLIO, seeks capital appreciation by
---------------------------
investing in a diversified portfolio of equity securities of large
and mid-capitalization companies with superior prospects for
earnings growth.
THE SMALL CAPITALIZATION EQUITY PORTFOLIO, seeks capital
-----------------------------------------
appreciation by investing in a diversified portfolio of equity
securities of small-capitalization companies.
THE INTERNATIONAL EQUITY PORTFOLIO, seeks total return by investing
----------------------------------
in a diversified portfolio of equity securities of companies based
in developed countries other than the United States of America.
THE LIMITED DURATION MUNICIPAL BOND PORTFOLIO, seeks current income
---------------------------------------------
exempt from Federal income tax by investing in a diversified
portfolio of relatively short duration municipal notes.
- --------------------------------------------------------------------------------
<PAGE>
The following discussion summarizes those factors, including relevant market
conditions and the investment strategies and techniques of each of the
Investment Managers that materially affected the performance of the respective
Portfolios during the Trust's second year of operation.
ECONOMIC/CAPITAL MARKETS COMMENTARY
During the Trust's fiscal year, investors in both the stock and bond markets
spent a great deal of time speculating on the strength of the economy and the
likely Federal Reserve Board's reaction to that environment. The overriding
concern was that economic strength would stimulate inflationary pressures and
lead to higher interest rates.
The above tension between economic and inflationary pressures produced a very
nervous bond market throughout much of the fiscal year and this translated
into somewhat higher volatility in the stock market. The chart below displays
several interesting relationships:
<TABLE>
<CAPTION>
1FQ97 2FQ97 3FQ97 4FQ97 FISCAL 97
------ ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C>
S+P 500............................... 3.06% 8.37% 2.62% 17.43% 34.58%
Russell 2000.......................... 0.34% 5.20% -5.17% 16.21% 16.33%
EAFE.................................. -0.05% 1.67% -1.50% 13.06% 13.16%
Lehman Aggregate Bond Index........... 1.84% 3.00% -0.56% 3.68% 8.16%
</TABLE>
As can be seen, when the bond market was weak due to inflation and Fed related
fears, stock prices weakened. Also, the largest capitalization stocks (S+P
500) held up better than the smaller capitalization sectors (Russell 2000).
Also, note the very large fiscal year performance spread (18.25%) between
large and small capitalization securities, and the even more dramatic spread
(21.42%) between large U.S. stocks and developed markets non-U.S. companies.
In the Portfolio discussions that follow, we will be examining the continuing
challenges that active managers have faced, especially in the largest
capitalization sectors. Performance comparisons for each Portfolio are
provided relative to their respective benchmarks; these comparisons take into
account the fees and expenses of the respective Portfolios. In addition, the
discussion includes comparisons between the performance achieved by the
Portfolios and their individual Investment Managers against two peer group
indicators, each compiled by independent statistical monitoring organizations.
The first of these, Evaluation Associates, Inc. (EAI) is an institutional
investment management consulting organization that monitors and reports
performance results on active equity and fixed income managers. The second,
Morningstar, Inc. (Morningstar) is an independent organization that tracks the
performance of mutual funds. We are pleased to report that four out of five of
the Portfolios succeeded in outperforming their relevant index and, equally
important, did well in both the EAI and Morningstar peer group comparisons.
This is a significant accomplishment in light of the concentrated nature of
much of the year's equity market performance.
1
<PAGE>
THE VALUE EQUITY PORTFOLIO
The investment objective of this Portfolio is to provide total return
consisting of capital appreciation and current income. In accordance with its
investment policies, this Portfolio is oriented toward large capitalization
equities with relatively lower price-earnings ratios and higher dividend
income than the average range for stocks included in the Standard & Poors 500
Stock Index. As of June 30, 1997, the Portfolio's managers were Hotchkis and
Wiley and Institutional Capital Corporation (ICAP).
As can be seen from the table below*, both managers have constructed
portfolios whose characteristics are consistent with the Trust's policies.
<TABLE>
<CAPTION>
P/E RATIO YIELD AVERAGE MARKET CAP
--------- ----- ------------------
<S> <C> <C> <C>
S+P 500 Index........................... 25.6x 1.7% $50.9 billion
Total Portfolio......................... 20.1x 2.2% $19.1 billion
Hotchkis and Wiley...................... 20.8x 3.0% $14.9 billion
Institutional Capital................... 19.7x 1.7% $21.6 billion
</TABLE>
*Source: Evaluation Associates as of June 30, 1997
For the fiscal year ended June 30, 1997, the Hirtle Callaghan (HC) Value
Equity Portfolio had a total return of 35.28%, which compares to the S+P 500
Index return of 34.58%.
This better than index performance is especially impressive in the context of
other active value managers. We present below a chart comparing the HC Trust
Value Equity Portfolio compared to the S+P 500 index and the EAI and
Morningstar peer groups. The comparison below is a median performance result
for a group of value managers (within EAI's total equity universe of 837
managers) who are considered to be a peer group of the HC Trust Value Equity
Portfolio managers. The Morningstar Large Value performance number is a median
of 293 managers considered to be roughly equivalent to the HC Trust Value
Equity Portfolio managers.
<TABLE>
[GRAPH APPEARS HERE]
<S> <C>
HC Trust Value Portfolio 35.28%
S&P 500 Index 34.58%
EAI Large Cap Value 31.30%
Morningstar Large Cap Value 28.49%
</TABLE>
2
<PAGE>
<TABLE>
[GRAPH APPEARS HERE]
Value Equity Portfolio
Value of a $10,000 Investment
<CAPTION>
Value Equity Portfolio S&P 500 Stock Index
---------------------- -------------------
<S> <C> <C>
8/17/95 $10000 $10000
9/30/95 $10340 $10419
12/31/95 $10960 $11040
3/31/96 $11507 $11640
6/30/96 $11728 $12165
9/30/96 $12071 $12538
12/31/96 $13288 $13588
3/31/97 $13735 $13943
6/30/97 $15867 $16382
</TABLE>
<TABLE>
Average Annual Total Return
As of June 30, 1997
<CAPTION>
Since
Inception
1 Year (8/25/95)
- --------------------- ---------
<S> <C>
35.28% 28.35%
</TABLE>
The Portfolio's performance is compared to the Standard & Poor's 500 Stock
Index, which represents the performance of the U.S. stock market as a whole.
The index is unmanaged and does not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees.
The performance of the Hirtle Callaghan Value Equity Portfolio reflects the
deduction of fees for these value added services. Past performance is not
predictive of future results. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
3
<PAGE>
THE GROWTH EQUITY PORTFOLIO
The investment objective of this Portfolio is to provide capital appreciation,
with income as a secondary consideration. In accordance with its investment
policies, this Portfolio is oriented toward large capitalization, equity
securities with an emphasis on long-term earnings growth potential and
relatively higher price-earnings ratios and lower dividend yields than the
average range for stocks included in the Standard & Poors 500 Stock Index. As
of June 30, 1997, the Portfolio's managers were Jennison Associates Capital
Corporation (Jennison) and Westfield Capital Management Company (Westfield).
As can be seen from the table below*, both managers have constructed portfolios
whose characteristics are consistent with the Trust's policies. However,
Jennison and Westfield have differing assignments within the growth segment of
the large capitalization arena. Jennison concentrates on the largest,
multinational companies in the large capitalization growth area, while
Westfield focuses on the mid capitalization zone.
<TABLE>
<CAPTION>
P/E RATIO YIELD AVERAGE MARKET CAP
--------- ----- ------------------
<S> <C> <C> <C>
S+P 500 Index........................... 25.6x 1.7% $50.9 billion
Total Portfolio......................... 30.3x 0.9% $24.5 billion
Jennison................................ 29.3x 0.8% $29.1 billion
Westfield............................... 32.1x 1.0% $16.5 billion
</TABLE>
* Source: Evaluation Associates as of June 30, 1997
For the fiscal year ended June 30, 1997, the HC Growth Equity Portfolio had a
total return of 23.83%, which compares to the S+P 500 Index return of 34.58%.
There are two components of the shortfall of the Portfolio against the S+P 500
index. The first is the active vs passive environment of the past year. The
second is that one of your managers (Westfield) had a mid capitalization growth
orientation that, as a sector, also underperformed the larger capitalization
S+P 500 index.
The chart below illustrates the discrepancy between large and mid cap managers
in the growth sector.
<TABLE>
[GRAPH APPEARS HERE]
<S> <C>
HC Trust Growth Portfolio 23.83%
S&P 500 Index 34.58%
EAI Large Cap Growth 29.70%
Morningstar Large Cap Growth 25.07%
EAI Mid Cap Growth 11.00%
Morningstar Mid Cap Growth 10.77%
</TABLE>
4
<PAGE>
The HC Growth Equity Portfolio is structured to participate in both the large
and mid capitalization growth sectors. As such, when one sector dramatically
underperforms, the result distorts the comparisons. The Portfolio was segmented
approximately 60% to large and 40% to mid capitalization managers. Blending the
EAI medians in a similar proportion results in a peer group comparison
performance for the year of 22.2%.
Additionally, both Jennison (the Trust's large capitalization manager) and
Westfield (the Trust's mid capitalization manager) equaled or bettered their
EAI and Morningstar peer group comparisons.
<TABLE>
[GRAPH APPEARS HERE]
<S> <C>
Jennison 29.95%
EAI Large Cap Growth 29.70%
Morningstar Large Cap Growth 25.07%
Westfield 16.90%
EAI Mid Cap Growth 11.00%
Morningstar Mid Cap Growth 10.77%
</TABLE>
<TABLE>
[GRAPH APPEARS HERE]
Growth Equity Portfolio
Value of a $10,000 Investment
<CAPTION>
Growth Equity S&P 500 Stock
<S> <C> <C>
8/8/95 $10000 $10000
9/30/95 $10310 $10447
12/31/95 $10240 $11070
3/31/96 $10673 $11671
6/30/96 $11169 $12198
9/30/96 $11487 $12572
12/31/96 $12299 $13624
3/31/97 $11812 $13980
6/30/97 $13830 $16426
</TABLE>
<TABLE>
Average Annual Total Return
As of June 30, 1997
<CAPTION>
Since
Inception
1 Year (8/8/95)
- ------ ---------
<S> <C>
23.83% 18.65%
</TABLE>
The Portfolio's performance is compared to the Standard & Poor's 500 Stock
index, which represents the performance of the U.S. stock market as a whole.
The index is unmanaged and does not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees. The
performance of the Hirtle Callaghan Growth Equity Portfolio reflects the
deduction of fees for these value added services. Past performance is not
predictive of future results. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
5
<PAGE>
THE SMALL CAPITALIZATION EQUITY PORTFOLIO
The investment objective of this Portfolio is to provide long-term capital
appreciation by investing primarily in equity securities of smaller companies.
In accordance with its investment policies, this portfolio consists primarily
of companies with a total market capitalization of less than $1 billion at the
time of purchase. As of June 30, 1997, the Portfolio's managers were Frontier
Capital Management Company (Frontier) and Clover Capital Management, Inc.
(Clover). Both a value (Clover) and a growth (Frontier) oriented manager are
employed simultaneously to capture the different segments of this diverse
universe.
As can be seen from the table below*, both managers have constructed
portfolios whose characteristics are consistent with the Trust's policies.
<TABLE>
<CAPTION>
P/E RATIO YIELD AVERAGE MARKET CAP
--------- ----- ------------------
<S> <C> <C> <C>
Russell 2000 Index...................... 24.6x 1.3% $0.7 billion
Total Portfolio......................... 24.2x 1.0% $1.1 billion
Clover Capital.......................... 21.0x 1.6% $1.6 billion
Frontier Capital........................ 27.2x 0.5% $0.7 billion
</TABLE>
*Source: Evaluation Associates as of June 30, 1997
For the fiscal year ended June 30, 1997, the HC Small Capitalization Equity
Portfolio had a total return of 19.88%, which compares to the Russell 2000
Index return of 16.33%.
The HC Trust Small Capitalization Equity Portfolio also performed well vs
relevant peer groups.
<TABLE>
[GRAPH APPEARS HERE]
<S> <C>
HC Trust Small Cap Portfolio 19.88%
Russell 2000 Index 16.33%
EAI Small Cap Equity 21.10%
Morningstar Small Cap Equity 18.66%
</TABLE>
Both Frontier, the growth manager of this Portfolio, and Clover, the value
manager, outperformed the Russell 2000 small capitalization index. Frontier's
performance was especially impressive in light of the very difficult small
capitalization growth stock environment during the fiscal year. Clover, while
modestly outperforming Frontier (20.32% vs 19.39%), did not better their value
peer group. Clover's superior returns have tended to arrive in very narrow
time segments and during periods of market weakness (of which we have few and
of fleeting duration). This is a characteristic of many value managers, and we
continue to seek to optimize the value/growth mix.
6
<PAGE>
<TABLE>
[GRAPH APPEARS HERE]
Small Capitalization Equity Portfolio
Value of a $10,000 Investment
<CAPTION>
Small Capitalization Russell 2000 Index
<S> <C> <C>
9/5/95 $10000 $10000
9/30/95 $ 9970 $10179
12/31/95 $ 9981 $10399
3/31/96 $10453 $10930
6/30/96 $11182 $11477
9/30/96 $11417 $11515
12/31/96 $12623 $12114
3/31/97 $11776 $11488
6/30/97 $13406 $13350
</TABLE>
<TABLE>
Average Annual Total Return
As of June 30, 1997
<CAPTION>
Since
Inception
1 Year (9/5/95)
- ------ --------
<S> <C>
19.88% 17.48%
</TABLE>
The Portfolio's performance is compared to the Russell 2000 Index, which
represents the performance of domestically traded common stocks of small to
mid-sized companies. The index is unmanaged and does not reflect the deduction
of fees associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Hirtle Callaghan Small Capitalization
Equity Portfolio reflects the deduction of fees for these value added
services. Past performance is not predictive of future results. The investment
return and NAV will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than the original cost.
7
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
The investment objective of this Portfolio is to maximize total return,
consisting of capital appreciation and current income, by investing primarily
in a diversified portfolio of equity securities of non-U.S. issuers. As of
June 30, 1997, the manager of the HC International Equity Portfolio was
Brinson Partners, Inc. (Brinson). The following table lists several key
portfolio statistics relevant to the assignment:
<TABLE>
<CAPTION>
P/E RATIO YIELD AVERAGE MARKET CAP
--------- ----- ------------------
<S> <C> <C> <C>
MSCI EAFE Index......................... 28.8x 1.9% $26.9 billion
Brinson Partners........................ 26.0x 2.4% $20.0 billion
</TABLE>
In addition, Brinson has structured a portfolio which is, generally, aligned
with the major components of the Morgan Stanley (MSCI) EAFE Index.
Importantly, Brinson does not invest at any time in the emerging markets of
the world, a factor that effects many EAFE oriented managers who sometimes
slip into these investments, and thus increase the risk profile of their
portfolio while diverging from their specific assignment.
For the fiscal year ended June 30, 1997, the HC International Equity Portfolio
had a total return of 19.61%, which compares to the MSCI EAFE Index return of
13.16%.
The HC International Equity Portfolio also outperformed relevant peer groups.
<TABLE>
[GRAPH APPEARS HERE]
<S> <C>
HC Trust International Portfolio 19.61%
MSCI EAFE Index 13.16%
EAI Non-U.S. Equity 17.80%
Morningstar Foreign Stock 16.11%
</TABLE>
This strong and consistent performance by Brinson is the result of two
important macro decisions consistent with their value oriented, risk averse
approach. First, Brinson entered the fiscal year 9.1% underweight Japanese
equities relative to the EAFE index (31.5% vs 39.6%). This was reduced
somewhat during the year to a more modest underweight (5%), which enabled them
to capture more of the Japanese equity market rally than their peer group.
Second, and more importantly, Brinson sustained a dollar hedge (out of foreign
currencies and into the dollar and related currencies), which captured a great
deal of the dollar's strong performance against most international currencies.
The most significant currency underweight was the Japanese yen at 20.0% vs
39.6% in the EAFE index.
Brinson entered the 1998 fiscal year modestly underweight Japanese equities vs
the EAFE index ( 27 % vs 33%) and equal weight the yen.
8
<PAGE>
<TABLE>
[GRAPH APPEARS HERE]
International Equity Portfolio
Value of a $10,000 Investment
<CAPTION>
International E Morgan Stanley
<S> <C> <C>
8/17/95 10000 10000
9/30/95 10190 10198
12/31/95 10714 10618
3/31/96 11059 10704
6/30/96 11515 11115
9/30/96 11607 11109
12/31/96 12198 11294
3/31/97 12304 11126
6/30/97 13773 12578
</TABLE>
<TABLE>
Average Annual Total Return
As of June 30, 1997
<CAPTION>
Since
Inception
1 Year (8/17/95)
- ------ ---------
<S> <C>
19.61% 18.66%
</TABLE>
The Portfolio's performance is compared to the Morgan Stanley Capital
International Europe, Australia and Far East (EAFE) Index, which represents
the performance of the major stock markets in those regions. The index is
unmanaged and does not reflect the deduction of fees associated with a mutual
fund, such as investment management and fund accounting fees. The performance
of the Hirtle Callaghan International Equity Portfolio reflects the deduction
of fees for these value added services. Past performance is not predictive of
future results. The investment return and NAV will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
9
<PAGE>
THE LIMITED DURATION MUNICIPAL BOND PORTFOLIO
The investment objective of this Portfolio is to provide a high level of
current income exempt from Federal income tax, consistent with the
preservation of capital. This Portfolio is designed to have an overall
duration of less than four years and to have a target quality rating of AA as
defined by the S&P rating agency. As of June 30, 1997, the HC Limited Duration
Municipal Bond Portfolio was managed by Morgan Grenfell Capital Management
Incorporated (Morgan Grenfell). The following table lists several key
portfolio statistics relevant to the assignment:
<TABLE>
<CAPTION>
MATURITY 30 DAY YIELD CREDIT RATING
-------- ------------ -------------
<S> <C> <C> <C>
Merrill Lynch 0-3yr Muni Index........ 2.0 yrs NA AA
Morgan Grenfell....................... 2.0 yrs 4.8% AA
</TABLE>
For the fiscal year ended June 30, 1997, the HC Limited Duration Municipal
Bond Portfolio had a total return of 5.34%, which compares to the Merrill
Lynch 0-3 Yr Muni Bond Index return of 4.42%.
Given the very conservative, risk adverse intent of this Portfolio, we are
very pleased with the Portfolio's performance. The value of this limited
duration tax-free municipal bond Portfolio is two fold: first, it allows
taxable investors with short term cash management needs but no overnight
liquidity needs to capture the extra yield normally unavailable to tax free
money market funds; second, it operates in a very inefficient sector of the
municipal bond market, where a knowledgeable participant like Morgan Grenfell
has been able to discover and capture higher yields with little additional
volatility or credit risk.
<TABLE>
[GRAPH APPEARS HERE]
Limited Duration Municipal Bond Portfolio
Value of a $10,000 Investment
<CAPTION>
Limited Duratio Merrill Lynch O
<S> <C> <C>
10/10/95 $10000 $10000
12/31/95 $10217 $10134
3/31/96 $10270 $10235
6/30/96 $10360 $10306
9/30/96 $10508 $10426
12/31/96 $10681 $10551
3/31/97 $10736 $10601
6/30/97 $10913 $10762
</TABLE>
<TABLE>
Average Annual Total Return
As of June 30, 1997
<CAPTION>
Since
Inception
1 Year (10/10/95)
- ------ ----------
<S> <C>
5.34% 5.20%
</TABLE>
The Portfolio's performance is compared to the Merrill Lynch 0-3 year
Municipal Index, which represents the performance of the U.S. municipal bonds
in that maturity range. The index is unmanaged and does not reflect the
deduction of fees associated with a mutual fund, such as investment management
and fund accounting fees. The performance of the Hirtle Callaghan Limited
Duration Municipal Bond Portfolio reflects the deduction of fees for these
value added services. Past performance is not predictive of future results.
The investment return and NAV will fluctuate, so that an investor's shares,
when redeemed, may be worth more or less than the original cost.
10
<PAGE>
CONCLUSION
We are generally pleased with the investment management teams we have retained
on behalf of our shareholders. While we are pleased that so many of our
Portfolios and investment managers outperformed both their indices and their
relevant peer groups, we are in a constant search for better, more efficient
structures and managers.
In addition, we have continued to concentrate on cost control. Each of the
Portfolios are now operating well within the projected expense ratios, with
total net assets at the end of the fiscal year of $578 million. We are
optimistic about our ability to continue to drive down the expenses of these
Portfolios. Every basis point of savings will go directly to our shareholders.
We remain grateful for your confidence in us and your continuing support. We
assure you that we will continue to work on your behalf to deliver the best
long-term investment solutions available in the marketplace.
Sincerely,
/s/ Donald E. Callaghan
Donald E. Callaghan
President
11
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS -- 96.30%
HOTCHKIS & WILEY
PORTFOLIO -- 35.88%
AEROSPACE/DEFENSE -- 0.53%
7,000 Northrop Grumman Corp................................. $ 614,688
------------
AUTO PARTS -- 0.45%
13,900 Dana Corp............................................. 528,200
------------
AUTOMOBILE PRODUCTION -- 2.48%
39,200 Ford Motor Company.................................... 1,479,800
25,500 General Motors Corp................................... 1,420,031
------------
2,899,831
------------
BANKING -- 3.29%
25,200 Ahmanson H.F. & Co.................................... 1,083,600
12,000 Comerica, Inc......................................... 816,000
6,500 First Chicago Corp.................................... 393,250
13,700 Keycorp............................................... 765,487
12,400 Lincoln National Corp................................. 798,250
------------
3,856,587
------------
CHEMICALS -- 1.34%
10,000 Dow Chemical Co....................................... 871,250
10,000 Eastman Chemical Co................................... 635,000
2,950 Millenium Chemicals................................... 67,112
------------
1,573,362
------------
ELECTRONIC COMPONENTS & INSTRUMENTS -- 0.29%
15,000 EG & G, Inc........................................... 337,500
------------
ENVIRONMENTAL -- 0.49%
17,300 Browning Ferris Industries............................ 575,225
------------
FINANCIAL SERVICES -- 2.32%
6,500 Beneficial Corp....................................... 461,906
9,000 Fannie Mae............................................ 392,625
19,300 Great Western Financial Corp.......................... 1,037,375
2,000 Harleysville Group, Inc............................... 75,750
20,900 Signet Banking Corp................................... 752,400
------------
2,720,056
------------
FURNITURE/APPLIANCES -- 0.84%
18,000 Whirlpool Corp........................................ 982,125
------------
HOLDING COMPANIES --
DIVERSIFIED -- 0.85%
5,162 Energy Group PLC*..................................... 218,740
17,500 Fortune Brands, Inc................................... 652,969
5,162 Hanson PLC - ADR...................................... 129,050
------------
1,000,759
------------
HOUSEHOLD PRODUCTS -- 0.15%
4,700 Tupperware Corp....................................... 171,550
------------
INSURANCE -- 2.91%
9,400 American General Corp................................. 448,850
8,250 AON Corp.............................................. 426,937
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ------------ --------
<C> <S> <C>
INSURANCE (CONTINUED)
11,400 Ohio Casualty Corp...................................... $ 501,600
17,000 SAFECO Corp............................................. 793,687
10,000 St. Paul Companies...................................... 762,500
1,900 TIG Holdings, Inc....................................... 59,375
4,400 Transamerica Corp....................................... 411,675
----------
3,404,624
----------
MACHINERY & ENGINEERING -- 0.60%
25,700 New Holland NV*......................................... 703,537
----------
MANUFACTURING -- 0.46%
13,400 Harsco Corp............................................. 542,700
----------
METALS -- 1.62%
12,500 Lukens, Inc............................................. 235,156
12,500 Reynolds Metals Co...................................... 890,625
21,900 USX-U.S. Steel Group, Inc............................... 767,869
----------
1,893,650
----------
OIL & GAS -- 3.57%
6,000 Atlantic Richfield Co................................... 423,000
5,000 Equitable Resources, Inc................................ 141,875
3,500 Exxon Corp.............................................. 215,250
13,000 National Fuel Gas Co.................................... 545,187
28,600 Occidental Petroleum Corp............................... 716,788
5,300 Sun, Inc.*.............................................. 164,300
13,800 Tenneco, Inc............................................ 623,587
4,000 Texaco, Inc............................................. 435,000
31,800 USX-Marathon Group...................................... 918,225
----------
4,183,212
----------
PAPER PRODUCTS -- 2.03%
17,000 International Paper Company............................. 825,563
11,000 Union Camp Corp......................................... 550,000
19,200 Weyerhaeuser Co......................................... 998,400
----------
2,373,963
----------
PHARMACEUTICALS -- 0.24%
8,000 Pharmacia & Upjohn, Inc................................. 278,000
----------
RAILROADS -- 0.38%
8,000 CSX Corp................................................ 444,000
----------
RAW MATERIALS -- 1.14%
11,200 Aluminum Co. of America................................. 844,200
15,100 Ultramar Diamond Shamrock Corp.......................... 492,638
----------
1,336,838
----------
RETAIL -- 1.98%
12,500 Intimate Brands, Inc.................................... 262,500
11,800 May Department Stores, Inc.............................. 557,550
14,800 Penney (J.C.) Co........................................ 772,375
13,500 Sears Roebuck & Co...................................... 725,625
----------
2,318,050
----------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
HOTCHKIS & WILEY
PORTFOLIO (CONTINUED)
TECHNOLOGY -- 0.39%
7,700 Rockwell International Corp........................... $ 454,300
-----------
TELECOMMUNICATIONS -- 1.90%
16,000 Alltel Corp........................................... 535,000
31,500 AT&T Corp............................................. 1,104,469
9,508 SBC Communications, Inc............................... 588,308
-----------
2,227,777
-----------
TEXTILES -- 0.12%
4,800 Russell Corp.......................................... 142,200
-----------
TOBACCO -- 0.80%
13,400 Gallaher Group PLC - ADR*............................. 247,063
15,600 Philip Morris......................................... 692,250
-----------
939,313
-----------
TRANSPORTATION -- 1.08%
4,900 Norfolk Southern...................................... 493,675
23,500 Ryder System, Inc..................................... 775,500
-----------
1,269,175
-----------
UTILITIES -- 3.63%
17,300 CMS Energy Corp....................................... 609,825
15,000 Central & South West Corp............................. 318,750
40,000 Edison International.................................. 995,000
27,000 Illinova Corp......................................... 594,000
11,100 MCN Corp.............................................. 339,937
18,000 New York State Gas & Electric......................... 375,750
8,700 NYNEX Corp............................................ 501,338
22,000 PECO Energy Co........................................ 462,000
2,000 Piedmont Natural Gas Co............................... 51,375
-----------
4,247,975
-----------
TOTAL -- HOTCHKIS & WILEY PORTFOLIO (COST
$34,729,039)......................................... 42,019,197
-----------
INSTITUTIONAL CAPITAL MANAGEMENT CORP. PORTFOLIO --
60.42%
AEROSPACE/DEFENSE -- 5.66%
40,100 Boeing Co............................................. 2,127,806
24,250 Northrop Grumman Corp................................. 2,129,453
46,500 Raytheon Co........................................... 2,371,500
-----------
6,628,759
-----------
AIRLINES & SERVICES -- 3.20%
18,250 AMR Corp.*............................................ 1,688,125
13,400 Continental Airlines, Class B*........................ 468,163
7,100 Hospitality Franchise Systems*........................ 411,800
59,300 Peninsular & Oriental SP - ADR........................ 1,184,221
-----------
3,752,309
-----------
AUTOMOBILE PRODUCTION -- 3.90%
64,100 Ford Motor Co......................................... 2,419,775
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ------------ --------
<C> <S> <C>
AUTOMOBILE PRODUCTION (CONTINUED)
38,450 General Motors Corp.................................... $ 2,141,184
-----------
4,560,959
-----------
BANKING -- 3.21%
42,200 Banc One Corp.......................................... 2,044,063
6,350 Wells Fargo & Co....................................... 1,711,325
-----------
3,755,388
-----------
BEVERAGES -- 1.15%
34,200 Grand Metropolitan ADR - PLC........................... 1,340,213
-----------
CHEMICALS -- 3.01%
23,800 Akzo Nobel............................................. 1,645,175
29,900 DuPont E.I. DeNemours & Co............................. 1,879,963
-----------
3,525,138
-----------
COMPUTER SOFTWARE &
SERVICES -- 1.07%
28,600 First Data Corp........................................ 1,256,612
-----------
COMPUTER SYSTEMS -- 2.92%
22,750 International Business Machines Corp................... 2,051,766
36,600 Sun Microsystems, Inc.*................................ 1,362,206
-----------
3,413,972
-----------
ELECTRONIC COMPONENTS & INSTRUMENTS -- 3.69%
8,300 Advanced Micro Devices, Inc.*.......................... 298,800
43,300 Philips Electronics NV................................. 3,112,187
11,350 SGS Thompson Microelectronics*......................... 908,000
-----------
4,318,987
-----------
ENTERTAINMENT -- 2.15%
56,250 Host Marriott Corp.*................................... 1,001,953
24,850 ITT Corp.*............................................. 1,517,403
-----------
2,519,356
-----------
FINANCIAL SERVICES -- 0.75%
20,300 Morgan Stanley, Dean Witter, Discover & Co............. 874,169
-----------
HEALTH CARE -- 2.13%
16,000 Aetna, Inc............................................. 1,638,000
29,000 Tenet Healthcare Corp.*................................ 857,313
-----------
2,495,313
-----------
INSURANCE -- 1.77%
28,450 Allstate Insurance Corp................................ 2,076,850
-----------
METALS -- 1.40%
22,950 Reynolds Metals Co..................................... 1,635,188
-----------
NON-DEFENSE, CAPITAL
SPENDING -- 1.22%
39,800 Agco Corp.............................................. 1,430,313
-----------
OIL & GAS -- 1.22%
9,800 Ashland, Inc........................................... 454,475
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
INSTITUTIONAL CAPITAL MANAGEMENT CORP. PORTFOLIO
(CONTINUED)
OIL & GAS (CONTINUED)
39,200 Union Pacific Resources Group........................ $ 975,100
------------
1,429,575
------------
PHARMACEUTICALS -- 4.91%
23,300 American Home Products Corp.......................... 1,782,450
23,159 Novartis AG - ADR.................................... 1,855,499
50,700 Rhone-Poulenc SA - ADR............................... 2,110,387
------------
5,748,336
------------
PUBLISHING & PRINTING -- 2.56%
54,850 Dun & Bradstreet Corp................................ 1,439,812
5,750 Tribune Co........................................... 276,359
63,350 U.S. West Media Group*............................... 1,282,837
------------
2,999,008
------------
RETAIL -- 2.15%
23,900 Dillards, Inc., Class A.............................. 827,538
38,700 Federated Department Stores, Inc.*................... 1,344,825
17,700 Office Depot, Inc.*.................................. 344,044
------------
2,516,407
------------
SHELTER -- 1.10%
17,500 Armstrong World Industries, Inc...................... 1,284,062
------------
TELECOMMUNICATIONS -- 3.47%
60,800 MCI Communications................................... 2,327,500
33,000 Sprint Corp.......................................... 1,736,625
------------
4,064,125
------------
TOYS -- 1.51%
37,350 Hasbro, Inc.......................................... 1,059,806
21,000 Mattel, Inc.......................................... 711,375
------------
1,771,181
------------
TRANSPORTATION -- 4.16%
22,900 Burlington Northern Santa Fe Corp.................... 2,058,137
46,200 Canadian Pacific, Ltd................................ 1,313,813
21,300 Union Pacific Corp................................... 1,501,650
------------
4,873,600
------------
UTILITIES -- 2.11%
42,900 NYNEX Corp........................................... 2,472,113
------------
TOTAL -- INSTITUTIONAL CAPITAL MANAGEMENT CORP.
PORTFOLIO (COST $58,784,181)........................ 70,741,933
------------
TOTAL -- COMMON STOCKS (COST $93,513,220)............ 112,761,130
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
SHORT-TERM INVESTMENTS -- 3.51%
HOTCHKIS & WILEY PORTFOLIO -- 1.13%
1,319,976 American Express, Commercial Paper, 5.00%, due 7/1/97
.................................................... $ 1,319,976
------------
TOTAL -- HOTCHKIS & WILEY PORTFOLIO
(COST $1,319,976)................................... 1,319,976
------------
INSTITUTIONAL CAPITAL MANAGEMENT CORP. PORTFOLIO --
2.38%
700,000 AT&T Corp., Commercial Paper, 6.15%, 7/1/97.......... 700,000
200,000 Goldman Sachs, Commercial Paper, 5.45%, 7/2/97....... 199,970
600,000 G.E. Capital Corp., Commercial Paper, 5.52%,
7/21/97............................................. 598,160
1,300,000 Warner Lambert, Commercial Paper, 5.50%, 7/29/97..... 1,294,439
------------
TOTAL -- INSTITUTIONAL CAPITAL
MANAGEMENT CORP.
PORTFOLIO (COST $2,792,569)......................... 2,792,569
------------
TOTAL -- SHORT-TERM INVESTMENTS
(COST $4,112,545)................................... 4,112,545
------------
TOTAL INVESTMENTS (COST $97,625,765) (A) -- 99.81%... 116,873,675
------------
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES -- 0.19%............................ 218,006
------------
NET ASSETS -- 100.00%................................ $117,091,681
============
</TABLE>
- --------
* Represents non-income producing security
ADR--American Depositary Receipt
PLC--Public Limited Company
(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.......................................... $19,757,549
Unrealized depreciation.......................................... (509,639)
-----------
Net unrealized appreciation...................................... $19,247,910
===========
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
COMMON STOCKS -- 98.15%
JENNISON ASSOCIATES CAPITAL CORP. PORTFOLIO -- 61.66%
AEROSPACE/DEFENSE -- 1.74%
52,700 Boeing Co............................................. $ 2,796,394
------------
BANKS -- 2.55%
27,900 Chase Manhattan Corp.................................. 2,708,044
100,700 Hibernia Corp., Class A............................... 1,403,506
------------
4,111,550
------------
BEVERAGES -- 0.62%
26,300 Pepsico, Inc.......................................... 987,894
------------
BUSINESS EQUIPMENT &
SERVICES -- 6.15%
73,300 CUC International, Inc.*.............................. 1,892,056
22,300 Federal Express Corp.*................................ 1,287,825
33,900 Gartner Group, Inc.*.................................. 1,218,281
26,500 Manpower, Inc......................................... 1,179,250
19,000 Omnicom Group, Inc.................................... 1,170,875
30,200 Reuters Holding PLC - ADR............................. 1,902,600
26,400 Robert Half International, Inc.*...................... 1,242,450
------------
9,893,337
------------
COMPUTER EQUIPMENT -- 2.81%
15,200 Dell Computer Corp.*.................................. 1,785,050
13,900 Microsoft Corp.*...................................... 1,756,613
29,100 Symbol Technologies, Inc.............................. 978,488
------------
4,520,151
------------
COMPUTER SOFTWARE -- 1.96%
31,200 Compuware Corp.*...................................... 1,489,800
28,900 Intuit*............................................... 662,894
75,400 Platinum Technology, Inc.*............................ 999,050
------------
3,151,744
------------
ELECTRICAL & ELECTRONICS -- 1.42%
26,100 KLA Instruments Corp.*................................ 1,272,375
31,600 LSI Logic Corp.*...................................... 1,011,200
------------
2,283,575
------------
ELECTRONIC COMPONENTS &
INSTRUMENTS -- 4.28%
14,900 Applied Materials, Inc.*.............................. 1,055,106
43,100 Hewlett Packard Co.................................... 2,413,600
16,700 Intel Corp.*.......................................... 2,368,269
56,500 International Rectifier Corp.*........................ 1,052,313
------------
6,889,288
------------
FINANCIAL SERVICES -- 2.27%
26,950 MBNA Corp............................................. 987,044
37,750 Morgan Stanley, Dean Witter,
Discover & Co........................................ 1,625,609
25,500 Schwab (Charles) Corp................................. 1,037,531
------------
3,650,184
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
FOOD -- 1.02%
24,500 Wrigley (Wm) Jr. Co................................... $ 1,641,500
------------
HEALTH CARE -- 0.91%
58,500 HEALTHSOUTH Corp.*.................................... 1,458,844
------------
HOUSEHOLD PRODUCTS & PERSONAL
CARE -- 1.16%
19,700 Gillette Co........................................... 1,866,575
------------
INSURANCE -- 2.81%
8,900 Cigna Corp............................................ 1,579,750
24,200 PMI Group............................................. 1,509,475
34,200 Unum Corp............................................. 1,436,400
------------
4,525,625
------------
LODGING -- 2.71%
62,300 Hilton Hotels Corp.................................... 1,654,844
45,200 Interstate Hotels Co.*................................ 1,330,575
35,400 Promus Hotel Corp.*................................... 1,371,750
------------
4,357,169
------------
MACHINERY & EQUIPMENT -- 0.91%
21,300 Case Corp............................................. 1,467,038
------------
MEDIA -- 1.36%
27,300 The Walt Disney Co.................................... 2,190,825
------------
MEDICAL EQUIPMENT &
SUPPLIES -- 0.84%
22,100 Boston Scientific Corp.*.............................. 1,357,769
------------
MISCELLANEOUS/DIVERSIFIED -- 0.86%
35,300 Diebold, Inc.......................................... 1,376,700
------------
NETWORKING -- 2.90%
18,000 Ascend Communications, Inc.*.......................... 708,750
31,800 Cisco Systems, Inc.*.................................. 2,134,575
40,300 3 Com Corp.*.......................................... 1,813,500
------------
4,656,825
------------
OIL SERVICES -- 1.20%
15,400 Schlumberger Ltd...................................... 1,925,000
------------
OIL & GAS -- 1.56%
27,100 Amerada Hess Corp..................................... 1,505,744
40,500 Union Pacific Resources Group......................... 1,007,437
------------
2,513,181
------------
PHARMACEUTICALS -- 7.16%
25,400 Bristol-Myers Squibb.................................. 2,057,400
22,900 Eli Lilly & Co........................................ 2,503,256
13,800 Merck & Co............................................ 1,428,300
27,200 Pfizer, Inc........................................... 3,250,400
24,800 Smithkline Beecham PLC - ADR.......................... 2,272,300
------------
11,511,656
------------
RESTAURANTS -- 0.55%
18,400 McDonald's Corp....................................... 888,950
------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
JENNISON ASSOCIATES CAPITAL CORP. PORTFOLIO
(CONTINUED)
RETAIL -- 4.51%
60,100 Autozone, Inc.*...................................... $ 1,416,106
87,200 Corporate Express*................................... 1,258,950
40,481 Dollar General Corp.................................. 1,518,037
35,500 Gap, Inc............................................. 1,380,062
23,900 Kohl's Corp.*........................................ 1,265,206
7,700 Sears, Roebuck & Co.................................. 413,875
------------
7,252,236
------------
SAVINGS & LOAN -- 1.07%
28,700 Washington Mutual, Inc............................... 1,714,825
------------
TECHNOLOGY -- 3.16%
24,700 Compaq Computer Corp.*............................... 2,451,475
15,000 International Business Machines Corp................. 1,352,812
12,200 Texas Instruments.................................... 1,286,156
------------
5,090,443
------------
TELECOMMUNICATIONS
EQUIPMENT -- 0.82%
33,400 Ericsson (L.M.) Telephone ADR........................ 1,315,125
------------
TELECOMMUNICATIONS -- 2.37%
23,400 Nokia Corp. ADR...................................... 1,725,750
23,000 Tellabs, Inc.*....................................... 1,285,125
16,400 Vodafone Group PLC - ADR............................. 794,375
------------
3,805,250
------------
TOTAL -- JENNISON ASSOCIATES CAPITAL CORP. PORTFOLIO
(COST $77,783,442).................................. 99,199,653
------------
WESTFIELD CAPITAL MANAGEMENT
PORTFOLIO -- 35.71%
AEROSPACE/DEFENSE -- 0.94%
28,400 Boeing Co............................................ 1,506,975
------------
BANKING -- 0.70%
43,100 Glendale Federal Bank*............................... 1,125,988
------------
BROADCASTING/CABLE -- 0.36%
22,500 General Cable*....................................... 576,562
------------
BUSINESS SERVICES -- 1.03%
64,500 CUC International, Inc.*............................. 1,664,906
------------
COMMERCIAL SERVICES -- 1.02%
50,000 Service Corp. International.......................... 1,643,750
------------
COMPUTER EQUIPMENT -- 0.93%
28,700 Keane, Inc.*......................................... 1,492,400
------------
COMPUTER SOFTWARE -- 2.86%
9,000 Computer Sciences Corp.*............................. 649,125
29,000 Electronic Data Systems Corp......................... 1,189,000
37,000 EMC Corp.*........................................... 1,443,000
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
-------- ----------- --------
<C> <S> <C>
COMPUTER SOFTWARE (CONTINUED)
19,000 Parametric Technology Corp.*........................... $ 808,688
15,704 Sterling Commerce, Inc.*............................... 516,262
------------
4,606,075
------------
CONSUMER SERVICES -- 0.80%
43,100 Rubbermaid, Inc........................................ 1,282,225
------------
ELECTRONIC COMPONENTS &
INSTRUMENTS -- 2.19%
42,000 Analog Devices, Inc.*.................................. 1,115,625
20,000 General Electric Co.................................... 1,307,500
27,800 Teradyne, Inc.......................................... 1,091,150
------------
3,514,275
------------
ENERGY EQUIPMENT &
SERVICES -- 0.83%
44,700 Microchip Technology, Inc.*............................ 1,329,825
------------
ENVIRONMENTAL -- 0.52%
34,300 Republic Industries, Inc.*............................. 831,775
------------
HEALTH CARE -- 0.81%
52,200 HEALTHSOUTH Corp....................................... 1,301,737
------------
INDUSTRIAL COMPONENTS -- 0.86%
25,000 Corning, Inc........................................... 1,390,625
------------
INSURANCE -- 1.68%
22,800 ACE Ltd................................................ 1,684,350
25,500 Allmerica Financial Corp............................... 1,016,813
------------
2,701,163
------------
MANUFACTURING -- 1.62%
37,400 Tyco International..................................... 2,601,638
------------
MEDICAL BIOTECHNOLOGY -- 1.55%
40,200 Centocor, Inc.*........................................ 1,248,712
15,300 Medtronic, Inc......................................... 1,239,300
------------
2,488,012
------------
MEDICAL SUPPLIES -- 1.14%
36,300 Becton Dickinson & Co.................................. 1,837,687
------------
NETWORKING -- 0.61%
25,000 Ascend Communications, Inc.*........................... 984,375
------------
OIL & GAS -- 4.51%
20,000 Burlington Resources, Inc.............................. 882,500
26,000 Halliburton Co......................................... 2,060,500
69,100 NGC Corp............................................... 1,066,731
20,000 Pennzoil Co............................................ 1,535,000
13,000 Western Atlas International, Inc.*..................... 952,250
14,800 Sonat, Inc............................................. 758,500
------------
7,255,481
------------
PHARMACEUTICALS -- 1.31%
20,300 Cardinal Health, Inc................................... 1,162,175
8,700 Eli Lilly & Co......................................... 951,019
------------
2,113,194
------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
WESTFIELD CAPITAL MANAGEMENT
PORTFOLIO (CONTINUED)
REAL ESTATE -- 3.01%
30,000 Arden Realty Group, Inc.............................. $ 780,000
48,000 Beacon Properties Corp............................... 1,602,000
48,000 Boston Properties, Inc............................... 1,320,000
50,000 Reckson Associates Realty Corp....................... 1,150,000
------------
4,852,000
------------
RETAIL -- 2.26%
30,000 CVS Corp............................................. 1,537,500
22,900 Penney (J.C.) Co..................................... 1,195,094
45,400 Zale Corp.*.......................................... 899,487
------------
3,632,081
------------
TELECOMMUNICATIONS -- 3.07%
52,600 Cincinnati Bell, Inc................................. 1,656,900
19,100 Motorola, Inc........................................ 1,451,600
24,900 Nokia Corp. ADR...................................... 1,836,375
------------
4,944,875
------------
TELECOMMUNICATIONS EQUIPMENT -- 1.10%
45,000 Ericsson (L.M.) Telephone ADR........................ 1,771,875
------------
TOTAL -- WESTFIELD CAPITAL MANAGEMENT PORTFOLIO (COST
$47,640,813) ....................................... 57,449,499
------------
TOTAL -- COMMON STOCKS
(COST $125,424,255)................................. 156,649,152
------------
SHORT-TERM INVESTMENTS -- 1.76%
JENNISON ASSOCIATES CAPITAL CORP. PORTFOLIO -- 1.71%
2,750,000 Ford Motor Co., Commercial Paper, 6.11%, 7/1/97...... 2,750,000
------------
TOTAL -- JENNISON ASSOCIATES CAPITAL CORP. PORTFOLIO
(COST $2,750,000)................................... 2,750,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
WESTFIELD CAPITAL MANAGEMENT PORTFOLIO -- 0.05%
75,000 Bankers Trust, Repurchase Agreement, 3.50%, 7/1/97
(Collateralized by $62,000 U.S. Treasury Notes,
8.75%, 8/15/00; market value $75,007)............... $ 75,000
------------
TOTAL -- WESTFIELD CAPITAL MANAGEMENT PORTFOLIO
(COST $75,000) ..................................... 75,000
------------
TOTAL -- SHORT-TERM INVESTMENTS (COST $2,825,000).... 2,825,000
------------
TOTAL INVESTMENTS
(COST $128,249,255) (A)--99.13%..................... 159,474,152
------------
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES--
0.92%................................................ 1,487,088
------------
NET ASSETS 100.00%................................... $160,961,240
============
</TABLE>
- --------
* Represents non-income producing security
ADR--American Depositary Receipt
PLC--Public Limited Company
(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.......................................... $33,609,700
Unrealized depreciation.......................................... (2,384,803)
-----------
Net unrealized appreciation...................................... $31,224,897
===========
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS -- 91.70%
CLOVER CAPITAL MANAGEMENT
PORTFOLIO -- 44.59%
ADVERTISING -- 1.29%
90,000 Advo, Inc.*........................................... $ 1,462,500
------------
BROADCASTING & PUBLISHING -- 3.93%
110,000 Comcast UK Cable Partners,
Limited - A*......................................... 1,320,000
150,000 Comcast Corp., Class A................................ 3,140,625
------------
4,460,625
------------
CHEMICALS -- 2.03%
80,000 Hanna M.A. Co......................................... 2,305,000
------------
COMPUTER SOFTWARE -- 2.58%
90,000 Marcam Corp........................................... 1,305,000
35,000 Sungard Data Systems, Inc.*........................... 1,627,500
------------
2,932,500
------------
CONSUMER NON-DURABLE -- 1.17%
60,000 Department 56, Inc.*.................................. 1,331,250
------------
CONSUMER CYCLICAL -- 0.62%
145,000 Designs, Inc.*........................................ 706,875
------------
ELECTRONIC COMPONENTS &
INSTRUMENTS -- 3.22%
30,000 Avnet, Inc............................................ 1,725,000
13,000 Harman International Industries, Inc.................. 547,625
35,000 Wyle Electronics...................................... 1,382,500
------------
3,655,125
------------
ENTERTAINMENT -- 1.23%
40,000 King World Productions, Inc.*......................... 1,400,000
------------
ENVIRONMENTAL -- 1.09%
80,000 Wheelabrator Technologies, Inc........................ 1,235,000
------------
FINANCIAL -- 3.07%
175,000 Frontier Corp......................................... 3,489,063
------------
FOOD-PROCESSING -- 1.05%
350,000 United Biscuits Holdings - ADR........................ 1,190,000
------------
HOSPITAL MANAGEMENT &
SERVICES -- 3.05%
160,000 Medpartners, Inc.*.................................... 3,460,000
------------
INSURANCE -- 0.88%
20,000 Liberty Financial Companies 997,500
------------
MACHINERY & ENGINEERING -- 0.75%
40,300 Tranzonic Companies................................... 846,300
------------
MANUFACTURING HOUSING -- 1.64%
80,000 Pall Corp............................................. 1,860,000
------------
MEDICAL EQUIPMENT &
SUPPLIES -- 0.69%
200,000 Oncor................................................. 787,500
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
OIL & GAS -- 4.64%
15,500 Eastern Enterprises.................................. $ 537,656
33,000 Oil-Dri Corp......................................... 530,063
120,000 Santa Fe Energy Resources, Inc.*..................... 1,762,500
37,000 Tesoro Petroleum Corp.*.............................. 548,062
90,000 Union Texas Petroleum Holdings, Inc.................. 1,884,375
------------
5,262,656
------------
PUBLISHING & PRINTING -- 0.65%
20,000 American Greetings Corp., Class A.................... 742,500
------------
REAL ESTATE -- 2.90%
30,092 Chateau Communities, Inc............................. 861,383
33,000 Manufactured Home Communities, Inc................... 761,062
8,500 Meditrust Corp....................................... 338,406
50,000 Storage Trust Realty................................. 1,325,000
------------
3,285,851
------------
RESTAURANTS -- 0.48%
90,000 Roadhouse Grill, Inc.*............................... 540,000
------------
RETAIL -- 0.68%
50,000 Cash America International, Inc...................... 525,000
26,300 Jacobson Stores...................................... 249,850
------------
774,850
------------
TECHNOLOGY -- 0.96%
14,000 Mineral Technologies, Inc............................ 525,000
50,000 Trident Microsystems, Inc.*.......................... 562,500
------------
1,087,500
------------
TEXTILES & APPAREL -- 0.44%
26,000 Fieldcrest Cannon, Inc.*............................. 494,000
------------
TOBACCO -- 1.16%
40,000 RJR Nabisco Holdings Corp............................ 1,320,000
------------
TRANSPORTATION-SHIPPING -- 1.48%
27,000 Avondale Industries, Inc............................. 567,000
80,000 Old Dominion Freight Line, Inc.*..................... 1,110,000
------------
1,677,000
------------
TELEPHONE -- 0.67%
142,600 Midcom Communications, Inc.*......................... 757,563
------------
TELECOMMUNICATIONS -- 2.24%
31,772 Ascent Entertainment Group........................... 289,920
50,000 California Microwave, Inc.*.......................... 700,000
65,000 Comsat Corp.......................................... 1,547,813
------------
2,537,733
------------
TOTAL -- CLOVER CAPITAL MANAGEMENT PORTFOLIO (COST
$46,205,954)........................................ 50,598,891
------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT
PORTFOLIO -- 47.11%
AEROSPACE/DEFENSE -- 1.13%
43,800 Aeroflex, Inc.*....................................... $ 224,475
11,700 Banner Aerospace, Inc.*............................... 103,838
15,730 BE Aerospace, Inc.*................................... 497,461
31,100 UNC Resources, Inc.*.................................. 454,838
------------
1,280,612
------------
BROADCASTING/CABLE -- 0.48%
20,600 General Cable*........................................ 527,875
1,700 Youth Services International, Inc.*................... 20,613
------------
548,488
------------
BUILDING MATERIALS &
COMPONENTS -- 0.77%
21,400 Elcor Corp............................................ 596,525
38,100 Perini Corp.*......................................... 280,988
------------
877,513
------------
BUSINESS EQUIPMENT &
SERVICES -- 0.31%
8,800 Black Box Corp.*...................................... 354,200
------------
CHEMICALS -- 1.76%
21,500 AG Services of America, Inc.*......................... 397,750
28,300 Brunswick Technologies, Inc.*......................... 265,313
38,700 Hexcel Corp.*......................................... 667,575
13,700 Spartech Corp......................................... 178,100
28,200 Wellman, Inc.......................................... 489,975
------------
1,998,713
------------
COMMERCIAL SERVICES -- 0.77%
4,200 Fine Host Corp.*...................................... 132,300
17,800 Lason, Inc.*.......................................... 500,625
18,000 Protection One, Inc.*................................. 243,000
------------
875,925
------------
COMPUTER EQUIPMENT -- 3.44%
10,400 Bell & Howell Co.*.................................... 320,450
86,400 ISG International Software Corp.*..................... 1,101,600
49,500 Learning Company, Inc.*............................... 464,063
34,300 Network General Corp.*................................ 510,213
59,300 Optika Imaging Systems, Inc*.......................... 296,500
30,500 Sandisk Corp.*........................................ 446,063
9,668 Seagate Technology, Inc.*............................. 340,193
38,800 State of The Art, Inc.*............................... 426,800
------------
3,905,882
------------
COMPUTER SOFTWARE -- 2.52%
41,600 Broadway & Seymour, Inc.*............................. 525,200
34,800 Evans & Sutherland Computer Corp.*.................... 970,050
8,000 Filenet Corp.*........................................ 116,000
31,300 Level 8 Systems, Inc.*................................ 508,625
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMPUTER SOFTWARE (CONTINUED)
17,600 Tecnomatix Technologies, Inc.*....................... $ 572,000
12,200 Wonderware
Corp.*.............................................. 172,325
------------
2,864,200
------------
ELECTRICAL & ELECTRONICS -- 2.65%
28,900 Cirrus Logic, Inc.*.................................. 303,450
35,700 Encore Wire Corp.*................................... 1,088,850
23,400 Harman International Industries, Inc................. 438,100
9,300 Oak Industries, Inc.*................................ 267,375
10,800 Rogers Corp.*........................................ 380,700
67,500 Spectrum Control, Inc.*.............................. 291,094
13,200 Trimble Navigation Ltd.*............................. 234,300
------------
3,003,869
------------
ELECTRONIC COMPONENTS & INSTRUMENTS -- 3.85%
46,400 Aavid Thermal Technologies, Inc.*.................... 957,000
19,800 Alpha Industries, Inc.*.............................. 164,588
10,800 Atmel Corp.*......................................... 302,400
14,400 DII Group, Inc.*..................................... 633,600
26,400 Invivo Corp.*........................................ 204,600
11,200 Lattice Semiconductor Corp.*......................... 632,800
7,200 Maxim Integrated Products, Inc.*..................... 409,500
25,700 Semiconductor Packaging Materials*................... 228,088
18,700 Harmon Industries, Inc............................... 402,050
18,500 VLSI Technology, Inc.*............................... 437,063
------------
4,371,689
------------
ENGINEERING & CONSTRUCTION -- 1.38%
94,700 Insituform Technologies Class A*..................... 580,038
10,000 J Ray McDermott SA*.................................. 270,000
16,000 Jacobs Engineering Group, Inc.*...................... 430,000
6,700 Stone & Webster, Inc................................. 286,006
------------
1,566,044
------------
ENVIRONMENTAL -- 0.51%
34,400 Safety Kleen Corp.................................... 580,500
------------
FINANCIAL SERVICES -- 0.70%
11,500 Aames Financial Corp................................. 212,750
16,100 Ocwen Asset Invesment Corp.*......................... 326,025
5,500 Redwood Trust, Inc................................... 257,125
------------
795,900
------------
FOREST PRODUCTS & PAPERS -- 0.51%
27,300 Louisiana-Pacific Corp............................... 576,713
------------
HEALTH CARE -- 0.69%
37,800 Apple Orthodontix, Inc.*............................. 344,925
41,400 Dusa Pharmaceuticals, Inc.*.......................... 256,163
12,800 Nextstar Pharmaceuticals, Inc.*...................... 182,400
------------
783,488
------------
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT
PORTFOLIO (CONTINUED)
INSURANCE -- 2.11%
16,600 American Annuity Group, Inc........................... $ 298,800
8,600 Avemco Corp........................................... 226,556
15,100 Conseco, Inc.......................................... 558,700
17,000 Coventry Corp.*....................................... 257,125
26,700 John Alden Financial Corp............................. 559,031
15,800 Mid Atlantic Medical Services, Inc.*.................. 245,888
4,800 Mid Ocean Ltd......................................... 251,700
------------
2,397,800
------------
LEISURE & TOURISM -- 0.27%
17,400 International Game Technology......................... 308,850
------------
MACHINERY & ENGINEERING -- 0.41%
31,000 Brown & Sharpe Manufacturing Co.*..................... 468,875
------------
MANUFACTURING -- 0.86%
11,400 Greenfield Industries, Inc............................ 307,800
3,800 Lesco, Inc............................................ 70,300
25,300 Wesley Jessen Visioncare, Inc.*....................... 604,038
------------
982,138
------------
MEDICAL -- BIOTECHNOLOGY -- 0.44%
18,500 Neoprobe Corp.*....................................... 259,000
10,700 Pharmaceutical Product Development, Inc.*............. 235,400
------------
494,400
------------
MEDICAL SUPPLIES -- 1.13%
35,200 CMS, Inc.*............................................ 321,200
13,000 Merit Medical Systems, Inc.*.......................... 86,125
26,000 Nastech Pharmaceutical Co.*........................... 273,000
29,900 Uroquest Medical Corp.*............................... 194,350
17,400 Visx, Inc.*........................................... 413,250
------------
1,287,925
------------
MEDICAL -- HOSPITAL MANAGEMENT & SERVICES -- 0.80%
45,500 American Service Group*............................... 648,375
7,800 United Wisconsin Services, Inc........................ 262,763
------------
911,138
------------
OIL & GAS -- 2.03%
18,700 American Exploration Co.*............................. 273,488
11,300 Carbo Ceramics, Inc................................... 307,925
81,300 Coho Energy, Inc.*.................................... 863,813
19,500 Noble Drilling Corp.*................................. 439,969
22,600 Wiser Oil Co.......................................... 416,688
------------
2,301,883
------------
PACKAGING/CONTAINER -- 0.43%
34,000 U.S. Can Corp.*....................................... 484,500
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
PHARMACEUTICALS -- 0.61%
31,000 Anesta Corp.*......................................... $ 589,000
25,200 I-Flow Corp.*......................................... 99,225
------------
688,225
------------
PUBLISHING & PRINTING -- 1.31%
36,500 International Imaging Materials, Inc.*................ 593,125
16,350 Mail-Well, Inc.*...................................... 465,975
20,500 Scientific Games Holdings Corp.*...................... 422,813
------------
1,481,913
------------
REAL ESTATE -- 2.07%
11,300 Boston Properties, Inc................................ 310,750
53,700 Commercial Real Estate Services*...................... 1,624,425
30,500 Prime Retail, Inc..................................... 409,844
------------
2,345,019
------------
RETAIL -- 0.26%
17,000 Claire's Stores, Inc.................................. 297,500
------------
SECURITY SERVICES -- 0.34%
80,000 Magal Security Systems*............................... 380,000
------------
SHIPBUILDING -- 0.65%
30,497 Halter Marine Group, Inc.*............................ 731,923
------------
STEEL -- 1.72%
23,300 Birmingham Steel Corp................................. 361,150
11,400 Carpenter Technology Corp............................. 521,550
18,400 J & L Specialty Steel, Inc............................ 220,800
14,300 Lukens, Inc........................................... 269,019
28,800 Oregon Steel Mills, Inc............................... 574,200
------------
1,946,719
------------
TECHNOLOGY -- 0.16%
13,600 Platinum Tech.*....................................... 180,200
------------
TELECOMMUNICATION
EQUIPMENT -- 1.23%
10,260 ADC Telecommunication, Inc.*.......................... 342,428
15,300 Boston Technology, Inc.*.............................. 452,306
5,200 Ciprico, Inc.*........................................ 79,300
13,300 DSC Communications Corp.*............................. 295,925
7,500 Digital Microwave*.................................... 225,000
------------
1,394,959
------------
TELECOMMUNICATIONS -- 3.09%
26,530 Arch Communications Group*............................ 202,291
24,500 Coherent Communication Systems Corp.*................. 612,500
75,725 Interferon Sciences, Inc.*............................ 681,525
14,100 Omnipoint Corp.*...................................... 234,412
28,500 Scientific-Atlanta, Inc............................... 623,437
27,300 Transaction Network Services*......................... 385,612
22,400 Western Wireless Corp., Class - A*.................... 355,600
24,100 360 Communications Co.*............................... 412,712
------------
3,508,089
------------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT PORTFOLIO (CONTINUED)
TEXTILES & APPAREL -- 1.04%
25,000 Fieldcrest Cannon, Inc.*.............................. $ 475,000
76,900 Oneita Industries, Inc................................ 31,241
18,700 Sport-Haley, Inc*..................................... 313,225
9,700 Unifi, Inc............................................ 362,537
------------
1,182,003
------------
TOYS -- 0.48%
29,000 Galoob (Lewis) Toys, Inc.*............................ 547,375
------------
TRANSPORTATION -- 1.89%
15,000 America West Airlines, Inc.,
Class - B*........................................... 217,500
24,000 Celadon Group*........................................ 276,000
25,000 Mesaba Holdings, Inc.*................................ 368,750
44,400 OMI Corp.*............................................ 424,575
14,500 Teekay Shipping Corp.................................. 501,156
13,700 U.S. Freightways Corp................................. 354,487
------------
2,142,468
------------
UTILITIES -- ELECTRICAL -- 0.47%
13,900 Calenergy Co., Inc.*.................................. 528,200
------------
WHOLESALE SPECIAL LINE -- 1.28%
22,700 Cameron Ashley Building Products*..................... 314,964
20,200 Central Garden & Pet Co.*............................. 505,000
42,700 Sodak Gaming, Inc.*................................... 629,825
------------
1,449,789
------------
WIRE & CABLE -- 0.56%
22,600 Essex International, Inc.*............................ 629,975
------------
TOTAL -- FRONTIER CAPITAL MANAGEMENT PORTFOLIO
(COST $44,655,722)................................... 53,455,602
------------
TOTAL -- COMMON STOCKS
(COST $90,861,676)................................... 104,054,493
------------
CORPORATE BONDS -- 0.49%
CLOVER CAPITAL MANAGEMENT
PORTFOLIO -- 0.49%
500,000 Meditrust Corp., 7.50%, 3/1/01........................ 560,625
------------
TOTAL CORPORATE BONDS
(COST $508,028)...................................... 560,625
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
SHORT-TERM INVESTMENTS -- 11.23%
CLOVER CAPITAL MANAGEMENT
PORTFOLIO -- 6.02%
6,827,607 Bankers Trust Co., Repurchase Agreement, 4.25%,
7/1/97 (Collateralized by $6,323,000 U.S. Treasury
Notes, 8.75%, 8/15/00; market value $6,828,413).... $ 6,827,607
------------
FRONTIER CAPITAL MANAGEMENT
PORTFOLIO -- 5.21%
5,917,380 Bankers Trust Co., Repurchase Agreement, 4.25%,
7/1/97 (Collateralized by $5,480,000 U.S. Treasury
Notes, 8.75% 8/15/00; market value $5,918,079)..... 5,917,380
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $12,744,987)................................. 12,744,987
------------
TOTAL INVESTMENTS (COST $104,114,691) (A)--103.42%.. 117,360,105
------------
LIABILITIES IN EXCESS OF OTHER
ASSETS--(3.42%).................................... (3,880,577)
------------
NET ASSETS--100.00% $113,479,528
============
</TABLE>
- --------
* Represents non-income producing security.
ADR--American Depositary Receipt
(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......................................... $17,757,871
Unrealized depreciation......................................... (4,512,457)
-----------
Net unrealized appreciation..................................... $13,245,414
===========
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS AND WARRANTS -- 92.27%
AUSTRALIA -- 4.75%
39,000 Amcor Ltd. (Forest Products)............................. $ 259,156
66,900 Boral Limited (Building Materials)....................... 210,657
10,000 Brambles Industries Ltd. (Services)...................... 197,772
93,600 Broken Hill Proprietary Co. Ltd.
(Metals - Diversified).................................. 1,377,036
10,000 Coca Cola Amatil Ltd. (Beverages)........................ 155,856
37,050 CRA Limited (Mining)..................................... 580,570
50,000 CSR Limited (Industrial)................................. 193,687
175,000 David Jones Limited (Retail Store)....................... 244,469
11,491 Lend Lease Corp. Ltd. (Real Estate)**.................... 242,957
129,514 M.I.M. Holdings Ltd. (Mining)............................ 191,684
61,200 National Australia Bank Ltd. (Financial)................. 876,663
128,097 News Corp. (Publishing & Printing)....................... 130,076
33,000 News Corp Ltd. Pfd.
(Publishing & Printing)................................. 614,223
78,800 Pacific Dunlop Ltd. (Holding Company).................... 233,252
82,049 Qantas Airways Ltd. (Transportation)..................... 192,065
29,200 Santos Ltd. (Oil & Gas).................................. 122,815
107,200 Westpac Banking Corp. (Financial)........................ 645,159
55,000 WMC Limited (Metals - Diversified)....................... 346,787
51,000 Woolworths Limited (Food - Retail)....................... 128,106
----------
6,942,990
----------
BELGIUM -- 3.03%
3,542 Acec - Union Miniere SA (Mining)*........................ 331,617
5,500 Delhaize Freres NPV (Retail - Grocery)................... 288,790
3,160 Electrabel NPV (Utilities)............................... 676,861
2,884 Fortis AG NPV (Insurance)................................ 595,308
224 Fortis AG - Strip Vvpr (Insurance)*...................... 50
700 Generale de Banque (Financial Services).................. 269,343
550 Generale de Banque - Tractabel Warrants expiring 11/30/99
(Financial Services).................................... 5,898
1,670 Group Bruxelles Lambert NPV
(Financial Services).................................... 279,764
1,080 Kredietbank NPV (Financial Services)..................... 435,060
25 Kredietbank - Vvpr (Financial Services).................. 9,863
1,710 Petrofina S.A. NPV (Oil & Gas)........................... 647,277
2,720 Societe Generale de Belique Paris
(Multi-Industry)........................................ 253,902
544 Solvay S.A. (Chemicals).................................. 320,400
750 Tractebel NPV (Multi-Industries)......................... 312,543
----------
4,426,676
----------
CANADA -- 2.85%
8,100 Alcan Aluminium Ltd.
(Metals - Diversified).................................. 276,316
7,400 Bank of Montreal (Financial)............................. 288,883
4,700 Barrick Gold Corp. (Mining).............................. 102,292
8,600 BCE Inc. (Telecom Services).............................. 239,183
5,600 Canadian National Railway Co. (Transportation)........... 244,166
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
CANADA (CONTINUED)
18,400 Canadian Pacific Ltd. (Holding Company)................... $ 523,734
7,200 Hudson's Bay Co. (Retail - Department Stores)............. 161,657
6,700 Imperial Oil Canada Ltd. (Oil & Gas)...................... 343,322
11,600 MacMillan Bloedel (Forest Products)....................... 159,629
7,300 Moore Corp. Ltd. (Business Equipment)..................... 143,811
8,000 Noranda Inc. (Metals - Diversified)....................... 172,376
2,800 Northern Telecom Ltd. (Telecommunications)................ 252,379
12,100 Nova Corp. of Alberta (Utilities)......................... 103,411
8,200 Royal Bank of Canada (Financial).......................... 371,486
11,500 Thompson Corp. (Publishing & Printing).................... 266,532
7,100 Seagram Co. Ltd. (Wine & Spirits)......................... 285,399
11,000 Trans Canada Pipelines Ltd. (Utilities)................... 221,084
----------
4,155,660
----------
FINLAND -- 0.68%
31,400 Merita Ltd. (Banking)..................................... 104,616
6,400 Nokia (Telecommunications)................................ 478,105
5,400 Outokumpu (Metals - Steel)................................ 107,116
1,600 Pohjola Insurance Co. (Insurance)......................... 47,453
231 Rauma (Industrial)........................................ 5,294
600 Sampo Insurance Co. (Insurance)........................... 58,354
8,300 UPM - Kymmene Corp. (Paper Products)...................... 191,815
----------
992,753
----------
FRANCE -- 6.20%
2,548 Accor Ltd. (Leisure & Tourism)............................ 381,288
3,372 Alcatel Alsthom (Telecommunications)...................... 422,023
4,118 AXA UAP Certificate of Guaranteed Value (Insurance)....... 15,966
6,618 AXA SA (Insurance)........................................ 411,198
11,610 Banque Nationale de Paris (Financial)..................... 477,896
2,328 Cie Bancaire SA (Financial Services)...................... 296,903
4,590 Cie Generale Warrants expiring 12/31/01 (Diversified
Operations).............................................. 2,747
3,810 Cie de St. Gobain (Building Materials).................... 555,235
2,818 Cie de Suez Compagnie (Financial Services)................ 135,995
2,790 Cie Generale Des Eaux (Utilities)......................... 357,248
1,090 Colas (Construction)...................................... 143,648
3,580 Credit Local de France (Construction)..................... 348,217
2,000 Groupe Denome (Food)...................................... 330,233
1,390 LVMH Moet Vuitton (Wine & Spirits)........................ 373,459
3,300 Lafarge SA (Building Materials)........................... 205,103
7,100 Lyonnaise Des Eaux (Environmental)........................ 206,093
3,600 Lyonnaise Des Eaux (Environmental)........................ 362,406
7,261 Michelin Cl. B (Tire & Rubber)............................ 435,293
7,806 Pechiney Cert D'Invest (Metals)........................... 307,291
4,050 Peugeot S.A. (Auto Related)............................... 390,770
10,100 Rhone-Poulenc Ord. (Pharmaceuticals)...................... 413,049
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS AND
WARRANTS (CONTINUED)
FRANCE (CONTINUED)
7,700 Seita (Tobacco)....................................... $ 243,542
5,410 Societe Nationale Elf Aquitane
(Oil & Gas).......................................... 583,254
3,794 Societe Generale (Financial).......................... 422,896
7,400 Thomson CSF (Defense)................................. 190,515
4,967 Total Co. Cl. B (Oil & Gas)........................... 501,709
30,500 Unisor Sacilor (Iron/Steel)........................... 549,764
------------
9,063,741
------------
GERMANY -- 8.72%
5,310 Allianz AG Holdings (Insurance)....................... 1,133,705
14,520 BASF AG (Chemical).................................... 535,543
19,240 Bayer AG (Chemical)................................... 741,060
625 Bayerische Motoren Werke AG
(Auto Related)....................................... 515,132
15,920 Commerzbank AG (Banking).............................. 454,414
7,650 Daimler Benz AG (Auto Related)........................ 622,190
15,483 Deutsche Bank AG (Financial).......................... 908,729
38,200 Deutsche Telekom AG (Telecommunications).............. 938,196
6,050 Henkel KGAA Vorzug (Chemicals)........................ 340,523
4,300 Hochtief AG (Building Materials)...................... 192,239
6,370 Hoechst AG (Chemicals)................................ 269,813
980 Man AG (Machinery & Engineering)...................... 305,004
1,223 Mannesmann AG
(Machinery & Engineering)............................ 545,697
4,462 Metro AG
(Retail - Department Stores)......................... 485,917
256 Muenchener Rueckver AG (Insurance).................... 724,847
1,571 Preussag AG (Holding Company)......................... 461,926
10,900 RWE AG (Oil & Gas).................................... 468,562
6,358 Schering AG (Pharmaceuticals)......................... 680,733
6,500 Siemens AG (Manufacturing)............................ 389,136
2,450 Thyssen AG (Steel).................................... 589,084
12,732 Veba AG (Utilities)................................... 718,807
950 Volkswagen AG (Auto Related).......................... 719,837
------------
12,741,094
------------
HONG KONG -- 1.12%
14,000 Cheung Kong Holdings
(Real Estate)........................................ 138,242
31,000 China Light & Power
(Electric - Distribution)............................ 175,661
19,000 53 (Financial Services)............................... 100,061
12,700 Hang Seng Bank (Banking).............................. 181,141
54,000 Hong Kong Telecommunications
(Telecom Services)................................... 128,948
34,000 Hutchison Whampoa
(Diversified Operations)............................. 294,038
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
HONG KONG (CONTINUED)
9,600 Jardine Matheson Holdings - ADR (Diversified
Operations)......................................... $ 67,500
22,000 New World Development
(Transportation - Marine)........................... 131,194
11,000 Sun Hung Kai Properties
(Real Estate)....................................... 132,401
18,000 Swire Pacific Ltd. (Airlines)........................ 162,056
28,000 Wharf Holdings (Real Estate)......................... 121,436
------------
1,632,678
------------
ITALY -- 3.14%
24,910 Assic Generali (Insurance)........................... 452,111
65,000 Banca Commerciale Italiana (Banking)................. 134,391
177,000 Credito Italiano
(Financial - Banking)............................... 323,330
36,500 Danieli Di Risp (Engineering)........................ 127,562
22,600 Edison SPA (Utilities)............................... 112,237
5,900 ENI ADS - ADR (Oil).................................. 335,563
74,000 Ente Nazionale Idrocarburi (Oil)..................... 418,355
182,500 Fiat Spa (Auto Related).............................. 336,593
26,100 Istituto Mobiliare Italiano Spa
(Financial Services)................................ 234,555
87,400 Istituto Nazionale D Assicurazi (Insurance).......... 132,961
30,400 Italgas (Utilities).................................. 98,209
11,000 Mediobanca Spa (Financial Services).................. 66,678
476,840 Montedison Spa (Multi - Industries).................. 314,252
22,000 Rinascente
(Retail - Department Stores)........................ 122,050
22,000 Rinascente Warrants expiring 12/31/99 (Retail -
Department Stores)................................. 3,618
23,000 Rinascente Savings
(Retail - Department Stores)........................ 55,862
23,000 Rinascente Savings Warrants expiring 12/31/99
(Retail - Department Stores)........................ 3,783
1,400 Rinascente Savings
(Retail - Department Stores)........................ 678
25,000 Sai Risp (Insurance)................................. 76,946
251,000 Telcom Italia Di Risp (Telecommunications)........... 496,103
55,000 Telecom Italia (Telecommunications).................. 164,435
70,000 Telecom Italia Mobile de Risp (Telecommunications)... 226,138
197,000 Tim Di Risp (Telecommunications)..................... 351,765
------------
4,588,175
------------
JAPAN -- 26.73%
61,000 Amada (Hand/Machine Tools)........................... 537,656
72,000 Asahi Glass Co. (Building Materials)................. 716,293
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS AND
WARRANTS (CONTINUED)
JAPAN (CONTINUED)
67,000 Bank of Tokyo - Mitsubishi (Financial/Banking).......... $ 1,344,795
49,000 Canon, Inc. (Business Equipment)........................ 1,334,148
20,500 Canon Sales
(Business & Public Services)........................... 477,660
56,000 Citizen Watch Co. (Jewelry)............................. 432,010
56,000 Dai Nippon Printing
(Publishing & Printing)................................ 1,265,730
39,000 Daiichi Pharmaceuticals Co. LTD (Pharmaceutical)........ 687,495
60,000 Daikin Kogyo Co.
(Machinery & Engineering).............................. 544,550
30,000 Daiwa House Industries (Manufacturing/Housing).......... 366,524
29,000 Denso Corp. (Auto Parts)................................ 693,429
24,600 Fanuc Co. (Electronic Components)....................... 944,585
36,000 Fujitsu (Computer Equipment)............................ 499,520
119,000 Hitachi Ltd. (Electrical & Electronics)................. 1,329,261
16,000 Honda Motor Co. (Auto Related).......................... 481,717
59,000 Inax (Building Materials)............................... 441,766
21,000 Isetan (Retail - Department Store)...................... 260,232
23,000 Ito Yokado Co. (Retail - Grocery)....................... 1,334,759
62,000 Kaneka Corp. (Chemicals)................................ 388,481
69,000 Keio Teito Electric Railway (Transportation)............ 328,170
69,000 Kintetsu - Kinki Nippon Railway (Transportation)........ 421,503
65,000 Kirin Brewery Co. Ltd. (Brewery)........................ 675,015
19,000 Kokuyo (Office/Business)................................ 514,006
74,000 Kuraray Co. Ltd. (Chemicals)............................ 736,190
7,000 Kyocera Corp. (Electronics)............................. 555,895
13,000 Maeda Road Construction
(Construction & Engineering)........................... 111,746
32,000 Marui (Retail).......................................... 594,816
90,000 Matsushita Electric Co.
(Electronic Components)................................ 1,814,294
75,000 Mitsubishi Paper Mills
(Forest Products & Paper).............................. 293,219
96,000 NGK Insulators (Industrial Components).................. 1,055,590
5,300 Nintendo (Toys)......................................... 444,018
38,000 Nippon Meat Packers (Food Processing)................... 490,793
47,000 Nippon Steel Corp. (Steel).............................. 150,118
62,000 Okumura (Construction).................................. 328,423
117,000 Osaka Gas Corp. (Utilities)............................. 335,919
44,000 Sankyo Pharmaceutical (Pharmaceuticals)................. 1,478,314
30,000 Sanwa Bank (Banking).................................... 445,065
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
JAPAN (CONTINUED)
14,000 Secom Co.
(Business & Public Services)......................... $ 1,027,489
42,000 Seino Transport
(Trucking & Leasing)................................. 454,490
117,000 Sekisui House (Manufacturing/Housing)................. 1,184,397
22,000 Shinmaywa Industries (Industries)..................... 154,905
13,700 Sony Corp. (Electrical & Electronics)................. 1,194,371
64,000 Sumitomo Bank Ltd. (Financial)........................ 1,050,004
50,000 Sumitomo Electric
(Metal Fabricate/Hardware)........................... 837,770
35,000 Sumitomo Trust & Banking (Financial).................. 375,687
37,000 Takeda Chemical Industries (Pharmaceuticals).......... 1,039,707
11,000 TDK Corp. (Electrical & Electronics).................. 807,313
55,000 Tokio Marine & Fire (Insurance)....................... 719,958
15,200 Tokyo Electric Power (Utilities)...................... 319,679
45,000 Tokyo Steel (Steel)................................... 502,662
44,000 Tonen Corp. (Oil & Gas)............................... 529,889
248,000 Toray Industries Inc. (Chemical)...................... 1,768,182
142,000 Toshiba Corp.
(Electrical & Electronics)........................... 913,291
33,000 Toyo Suisan Kaisha
(Food Processing).................................... 336,940
16,000 Toyota Motor Corp. (Auto Related)..................... 471,943
29,000 Yamazaki Baking Co. Ltd.
(Food Processing).................................... 511,214
------------
39,053,596
------------
MALAYSIA -- 1.60%
30,000 Hume Industries
(Building Materials)................................. 137,844
59,000 Kuala Lumpur (Misc - Materials)....................... 146,063
70,000 Land & General Holdings
(Forest Products & Paper)............................ 80,409
31,000 Malayan Banking (Financial)........................... 325,398
30,000 Malaysia International Shipping (Transportation)...... 77,834
9,000 Nestle Malaysia (Food Processing)..................... 67,377
13,000 New Straits Time Press Berhad
(Publishing & Printing).............................. 76,210
11,000 Perusahaan Otomobil Nasional (Automotive)............. 51,414
67,000 Public Bank Berhad (Financial)........................ 104,563
40,000 Resorts World Berhad (Entertainment).................. 120,415
6,000 Rothmans Pall Mall (Tobacco).......................... 58,940
82,000 Sime Darby Berhad
(Holding Company).................................... 272,835
48,500 Telecom Malaysia (Telecommunications)................. 226,690
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS AND
WARRANTS (CONTINUED)
MALAYSIA (CONTINUED)
71,000 Tenega Nasional (Utilities).......................... $ 345,916
16,000 UMW Holdings Berhad
(Machinery & Equipment)............................. 75,418
16,000 United Engineers Berhad (Engineering)................ 115,345
17,000 YTL Corporation Berhad (Construction)................ 52,523
1,700 YTL Power International (Telecommunications)*........ 2,141
------------
2,337,335
------------
NETHERLANDS -- 5.51%
34,376 ABN-Amro Holdings NV (Financial)..................... 640,514
1,000 Akzo Nobel (Chemicals)............................... 136,944
1,980 DSM NV (Chemicals)................................... 196,861
29,500 Elsevier (Publishing & Printing)..................... 492,593
1,200 Heineken (Beverages)................................. 204,653
23,602 ING Groep NV (Financial)............................. 1,087,401
11,500 KLM Royal Dutch Air (Transportation)................. 354,197
3,931 Kon Hoogovens (Iron & Steel)......................... 218,934
18,440 Koninklijke NV (Telecommunications).................. 722,843
10,750 Philips Electronics
(Electronic Components)............................. 769,460
46,680 Royal Dutch Petroleum (Oil & Gas).................... 2,426,324
3,760 Unilever NV (Food Processing)........................ 790,934
------------
8,041,658
------------
NEW ZEALAND -- 3.38%
835,900 Brierly Investment Co.
(Multi-Industries).................................. 817,950
288,400 Carter Holt Harvey
(Forest Products & Paper)........................... 746,673
95,700 Fletcher Challenge Building Ltd.
(Building & Materials).............................. 288,088
105,700 Fletcher Challenge Energy Ltd.
(Oil & Gas)......................................... 319,628
190,400 Fletcher Challenge Paper Ltd.
(Forest Products & Paper)........................... 461,897
205,589 Fletcher Challenge Forestry
(Forest Products & Paper)........................... 298,968
344,800 Telecom Corp of New Zealand (Telecommunications)..... 1,757,271
6,200 Telecom Corp of New Zealand - ADR
(Telecommunications)................................ 252,650
------------
4,943,125
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
SINGAPORE -- 1.46%
18,000 City Development (Real Estate)........................ $ 176,224
30,000 DBS Land (Real Estate)................................ 94,825
20,000 Development Bank of Singapore (Banking)............... 251,748
4,000 Fraser & Neave (Beverages)............................ 28,532
47,000 Hotel & Properties (Lodging).......................... 79,867
9,000 Keppel Corp.
(Machinery & Equipment).............................. 39,965
2,250 Keppel Corp. A Shares
(Machinery & Equipment)*............................. 9,755
40,000 Overseas Chinese Banking Corp. (Banking).............. 413,986
26,000 Singapore International Airlines (Transportation)..... 232,727
13,000 Singapore Press Holdings (Telecommunications)......... 261,818
102,000 Singapore Telecom. Ltd. (Telecommunications).......... 188,308
27,000 United Overseas Bank (Banking)........................ 277,552
29,000 Wing Tai Holdings Ltd.
(Holding Companies).................................. 83,552
------------
2,138,859
------------
SPAIN -- 2.18%
600 Acerinox SA (Steel)................................... 112,449
900 Banco Popular Espanol (Financial)..................... 220,540
4,000 Banco Bilbao Vizcaya (Financial)*..................... 325,007
4,810 Banco Central Hisponoamericano (Financial)............ 175,984
9,600 Banco Santander SA (Financial)........................ 295,846
1,800 Corporacion Mafre SA (Insurance)...................... 95,791
5,800 Empresa Nac Electric (Utiities)....................... 487,008
1,300 Fomento de Construcciones (Construction).............. 165,809
900 Gas Natural SDG (Gas Production)...................... 196,654
20,100 Iberdrola S.A. (Utilities)............................ 253,774
3,400 Repsol S.A. (Oil & Gas)............................... 143,782
2,300 Repsol S.A. - ADR (Oil & Gas)......................... 97,606
14,300 Telefonica de Espana (Telecommunications)............. 413,508
2,800 Vallehermoso SA (Real Estate)......................... 75,550
5,300 Viscofan (Food Processing)............................ 123,937
------------
3,183,245
------------
SWITZERLAND -- 2.08%
100 ABB AG (Electrical & Electric)*....................... 151,256
125 Alusuisse Lonza Recd (Metals/Diversified)............. 129,355
1,314 Credit Suisse Group (Financial)....................... 168,623
436 Nestle SA (Food Processing)........................... 574,728
532 Novartis AG (Pharmaceuticals)......................... 849,831
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS AND
WARRANTS (CONTINUED)
SWITZERLAND (CONTINUED)
392 Novartis Rights AG (Pharmaceuticals)*................. $ 36,219
64 Roche Holding AS - Genusshein (Pharmaceuticals)....... 578,414
110 Swiss Reinsurance Co Recd (Insurance)................. 155,465
135 Union Bank of Switzerland (Financial)................. 154,301
605 Zurich Versicherung (Insurance)....................... 240,576
------------
3,038,768
------------
UNITED KINGDOM -- 18.83%
34,000 Abbey National PLC (Commercial Banks)................. 464,133
19,900 Bass PLC (Brewery).................................... 242,832
117,300 B.A.T. Industries (Tobacco)........................... 1,049,605
27,100 Booker PLC (Food Processing).......................... 123,840
239,500 British Gas PLC (Utilities)........................... 881,145
211,000 British Energy PLC (Utilities)........................ 514,600
109,401 British Petroleum Co. PLC
(Oil & Gas).......................................... 1,359,567
265,800 British Steel PLC (Steel/Iron)........................ 659,312
193,600 British Telecom PLC (Telecommunications).............. 1,437,440
62,000 BTR PLC (Industrial Holdings)......................... 212,106
239,500 Centrica PLC (Utilities)*............................. 292,054
30,053 Charter (Multi-Industries)............................ 399,748
134,400 Coats Viyella (Textiles & Apparel).................... 285,272
150,000 FKI PLC (Electronics)................................. 424,512
253,700 General Electric PLC
(Electrical & Electronics)........................... 1,516,228
85,800 Glaxo Wellcome PLC (Pharmaceuticals).................. 1,771,163
62,900 Grand Metropolitan PLC
(Wine & Spirits)..................................... 608,906
83,600 Guinness (Wine & Spirits)............................. 818,339
61,175 Hanson PLC (Holding Company).......................... 303,996
163,100 Hillsdown Holdings
(Food Processing).................................... 458,871
182,200 House of Fraser
(Retail - Department Stores)......................... 479,242
37,000 H.S.B.C. Holdings PLC
(Financial Services)................................. 1,138,599
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
UNITED KINGDOM (CONTINUED)
13,000 Imperial Chemical Industries PLC (Chemicals)......... $ 180,817
56,000 Inchcape PLC (Commercial Service).................... 263,830
82,500 Legal And General (Insurance)........................ 556,922
134,700 Lloyds TSB Group PLC (Financial)..................... 1,381,331
98,100 Marks & Spencers PLC
(Retail - Dept Store)............................... 813,295
76,100 Mirror Group PLC
(Publishing & Printing)............................. 238,173
33,700 National Westminster Bank (Financial)................ 453,025
98,000 Northern Foods PLC (Foods)........................... 324,660
64,300 Peninsular & Oriental Steam Navigation Co.
(Transportation).................................... 642,261
17,110 Reckitt & Colman
(Household Products)................................ 255,073
29,400 Redland (Building Materials)......................... 166,653
36,000 Reuters Holdings PLC
(Publishing & Printing)............................. 379,364
67,000 RJB Mining PLC (Mining).............................. 401,538
95,211 Royal & Sun Alliance Insurance Group PLC
(Insurance)......................................... 702,167
37,600 RTZ Corp. (Mining)................................... 655,053
78,000 Sainsbury (J) PLC (Food)............................. 473,306
40,400 Scottish Hydro
(Utilities - Electric).............................. 280,121
224,700 Sears (Retail - Department Store).................... 250,627
152,300 Sedgwick Group (Insurance)........................... 314,392
44,500 SmithKline Beecham (Pharmaceuticals)................. 818,971
132,000 Smurfit (Jefferson) Group (Packaging)................ 384,558
65,600 Tesco (Retail - Grocery)............................. 403,523
44,600 Thames Water (Utilities)............................. 514,910
10,000 Unilever (Food Processing)........................... 286,587
58,500 Vodafone (Telecommunications)........................ 284,860
79,000 Williams Holdings
(Consumer Services)................................. 424,795
32,800 Yorkshire Water PLC (Water).......................... 213,228
------------
27,505,550
------------
TOTAL COMMON STOCKS
(COST $116,931,099)................................. 134,785,903
------------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
SHORT-TERM INVESTMENTS -- 6.96%
$ 214,555 Bankers Trust, Short-Term Deposit, 5.38%, 7/31/97.. $ 214,555
9,950,000 Bankers Trust, Time Deposit, 5.88%, 7/1/97......... 9,950,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $10,324,184).... 10,164,555
------------
TOTAL INVESTMENTS
(COST $127,255,283)
(A) -- 99.57%..................................... 144,950,458
------------
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES --
0.57%............................................ 1,171,494
------------
NET ASSETS -- 100.00%.............................. $146,121,952
============
</TABLE>
- --------
*Represents non-income producing security.
**Passive Foreign Investment Company
ADR--American Depositary Receipt
PLC--Public Liability Company
(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.......................................... $20,931,621
Unrealized depreciation.......................................... (3,236,446)
-----------
Net unrealized appreciation...................................... $17,695,175
===========
</TABLE>
<TABLE>
<CAPTION>
CONTRACT VALUE ON
AMOUNT SETTLEMENT ORIGINATION VALUE ON APPRECIATION
(LOCAL CURRENCY) DATE DATE 6/30/97 (DEPRECIATION)
---------------- FORWARD EXCHANGE CONTRACTS ---------- ------------ ------------ --------------
<C> <S> <C> <C> <C> <C>
CURRENCY PURCHASED
2,800,000 Canadian Dollar......... 8/22/97 $ 2,089,552 $ 2,034,292 ($55,260)
443,000,000 Japanese Yen............ 8/22/97 3,666,397 3,894,163 227,766
4,400,000 Netherlands Guilder..... 8/22/97 2,330,955 2,247,880 (83,075)
240,000,000 Spanish Peseta.......... 8/22/97 1,650,199 1,629,881 (20,318)
27,500,000 Swedish Krone........... 8/22/97 3,701,955 3,566,612 (135,343)
7,000,000 Swiss Franc............. 8/22/97 4,911,033 4,819,610 (91,423)
------------ ------------ ---------
Total Currency Purchased $18,350,091 $18,192,438 ($157,653)
============ ============ =========
CURRENCY SOLD
(7,300,000) Australia Dollar........ 8/22/97 ($5,599,915) ($5,514,845) $ 85,070
(80,000,000) Belgian Franc........... 8/22/97 (2,303,431) (2,230,027) 73,404
(3,400,000) British Pound........... 8/22/97 (5,446,444) (5,651,690) (205,246)
(1,000,000) German Mark............. 8/22/97 (594,071) (575,275) 18,796
(9,000,000) Hong Kong Dollar........ 8/22/97 (1,160,272) (1,160,976) (704)
(6,650,000) Netherlands Guilder..... 8/22/97 (3,520,940) (3,397,364) 123,576
(240,000,000) Spanish Peseta.......... 8/22/97 (1,683,679) (1,629,881) 53,798
------------ ------------ ---------
Total Currency Sold ($20,308,752) ($20,160,058) $148,694
============ ============ =========
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments -- June 30, 1997
<TABLE>
<CAPTION>
CREDIT
RATINGS PRINCIPAL SECURITY MATURITY VALUE
(UNAUDITED) AMOUNT DESCRIPTION RATE DATE (NOTE 2)
----------- --------- ----------- ---- -------- --------
<C> <C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS --
87.62%
ALABAMA -- 0.44%
NR/NR 180,000 Pell City Alabama
Industrial Development,
Shelby Steel Fabricators,
AMT
(LOC-Southtrust Bank)..... 7.70% 9/1/01 $ 182,048
----------
ALASKA -- 0.10%
NR/NR 40,000 Homewood Alaska............ 8.25% 2/1/04 42,750
----------
ARIZONA -- 0.92%
NR/AAA 60,000 Gila County Arizona
Industrial Development
Authority Revenue......... 11.25% 4/1/01 72,975
NR/A- 300,000 Valley Housing Development
Revenue, Section 8
Assistance................ 8.00% 10/1/20 304,566
----------
377,541
----------
ARKANSAS -- 10.14%
Aa2/A+ 150,000 Arkansas State Development
Finance Authority......... 9.38% 8/1/14 153,726
Aaa/AAA 2,400,000 Arkansas State Development
Finance Authority......... 5.10% 10/1/16 2,343,000
A1/AA 1,100,000 Rogers Arkansas Sales & Use
Tax Revenue............... 5.00% 11/1/15 1,115,125
Aaa/NR 390,726 Springdale Arkansas
Residential Housing Series
A......................... 7.65% 9/1/11 412,216
Aaa/NR 125,000 Washington County Hospital
Revenue................... 6.50% 1/1/00 128,438
----------
4,152,505
----------
CALIFORNIA -- 2.19%
Baa1/NR 140,000 Chino California University
School District, Capital
Construction Project,
Series A.................. 8.00% 9/1/04 149,100
NR/A+ 490,000 City of Vallejo Housing
Authority, Multi-Family
Housing Revenue........... 5.00% 6/1/07 490,608
NR/A 250,000 Los Angeles Community
Redevelopment Agency
Housing Revenue........... 5.50% 12/1/05 255,312
----------
895,020
----------
COLORADO -- 2.37%
Aa/NR 325,000 Aurora Colorado Housing
Authority, Single Family
Mortgage Revenue.......... 7.30% 5/1/10 349,164
NR/AA 205,000 Colorado Housing Finance
Authority................. 4.20% 2/1/22 204,971
NR/AA 235,000 Colorado Housing Finance
Authority................. 6.85% 8/1/22 239,700
A/NR 100,000 Commerce City Colorado
Single Family Mortgage
Revenue, Series A......... 6.88% 3/1/12 104,625
NR/A+ 70,000 Denver Colorado City &
County Industrial
Development Revenue....... 6.50% 6/1/99 72,012
----------
970,472
----------
CONNECTICUT -- 0.66%
A2/NR 145,000 Connecticut State
Development Authority,
Health Care Project....... 5.50% 9/1/97 145,096
A/A 120,000 Connecticut State Resource
Recovery Authority........ 7.63% 1/1/09 124,560
----------
269,656
----------
DELAWARE -- 2.73%
NR/AAA 25,000 Delaware Transit
Authority................. 9.00% 7/1/01 27,937
NR/NR 550,000 Wilmington Delaware
Hospital Revenue,
Osteopathic Hospital
Series A.................. 10.00% 10/1/03 594,686
NR/NR 494,565 Wilmington Delaware
Industrial Development
Revenue, Lewis Epstein
Project................... 8.09% 10/1/04 496,420
----------
1,119,043
----------
DISTRICT OF COLUMBIA --
0.34%
Aaa/AAA 135,000 District of Columbia
Revenue (Howard
University), Series A..... 8.00% 10/1/17 138,968
----------
FLORIDA -- 0.25%
Aaa/AAA 100,000 Cape Coral Florida Water
Revenue................... 6.63% 8/1/97 100,245
----------
GEORGIA -- 0.23%
NR/AAA 90,000 Fulton County Housing
Authority, Single Family
Revenue................... 6.20% 3/1/13 92,925
----------
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
CREDIT
RATINGS PRINCIPAL SECURITY MATURITY VALUE
(UNAUDITED) AMOUNT DESCRIPTION RATE DATE (NOTE 2)
----------- --------- ----------- ---- -------- --------
<C> <C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
ILLINOIS -- 3.53%
Aaa/AAA 300,000 Evergreen Park Hospital
Revenue................... 7.75% 2/15/09 $ 311,340
Aa3/AA- 100,000 Illinois State, General
Obligation Bonds.......... 4.75% 8/1/99 100,023
NR/NR 180,000 Macomb Illinois Elderly
Housing Corp. Revenue..... 7.25% 9/1/98 182,700
Aaa/AAA 500,000 St. Clair County Public
Building Revenue.......... 8.00% 12/1/05 507,885
A/NR 330,000 Woodridge Mortgage Revenue,
Series 1992-1............. 7.25% 12/1/10 343,613
----------
1,445,561
----------
INDIANA -- 1.37%
A2/NR 385,000 Indiana Health Facility
Financing Authority,
Revenue................... 9.25% 10/1/17 397,616
Aaa/AAA 160,000 Indiana State Toll Road
Revenue................... 10.00% 1/1/00 164,597
----------
562,213
----------
KANSAS -- 0.07%
NR/NR 30,000 North Kansas City
Hospital.................. 5.70% 3/1/98 30,123
----------
KENTUCKY -- 0.06%
NR/AAA 25,000 Kentucky State Pollution
Authority................. 5.90% 8/1/03 25,938
----------
LOUISIANA -- 7.04%
NR/NR 130,000 Jefferson Parish Home
Mortgage Authority, Series
A......................... 4.85% 12/1/01 130,488
NR/NR 255,000 Louisiana Public Facility
Authority Revenue......... 6.00% 7/1/07 255,000
Aaa/AAA 2,500,000 Louisiana Public Facility
Authority, Series A-1..... 5.00% 12/1/15 2,500,000
----------
2,885,488
----------
MASSACHUSETTS -- 0.71%
A/A 215,000 Consumer Public Power...... 5.10% 1/1/03 215,133
NR/A- 75,000 Plymouth County
Massachusetts,
Certificates of
Participation, Series A... 6.10% 4/1/98 75,752
----------
290,885
----------
MICHIGAN -- 3.93%
A/A+ 1,305,000 Michigan State Housing
Development Authority,
Home Improvement,
Series B.................. 7.65% 12/1/12 1,376,775
Aa/NR 230,000 Michigan State Strategic
Fund...................... 6.00% 2/1/00 234,025
----------
1,610,800
----------
MINNESOTA -- 1.00%
NR/A- 400,000 Apple Valley Housing
Development Revenue....... 7.40% 8/1/98 409,420
----------
MISSISSIPPI -- 1.88%
NR/NR 225,000 Mississippi Business
Finance Corp. Industrial
Development Authority,
Series 1996............... 4.50% 9/1/97 225,140
NR/NR 250,000 Mississippi Business
Finance Corp. Industrial
Development Authority,
Series 1996............... 4.80% 9/1/98 250,000
Aaa/NR 195,000 Mississippi Home Corp.
Mortgage Access Program,
Single-Family
Mortgage Revenue.......... 4.50% 6/1/99 194,025
Aaa/AAA 100,000 Mississippi Special
Hospital.................. 4.50% 7/1/97 100,000
----------
769,165
----------
MISSOURI -- 1.23%
Aaa/AAA 475,000 St. Louis County, Single-
Family Mortgage Revenue... 9.25% 10/1/16 505,281
----------
NEBRASKA -- 0.18%
NR/NR 70,000 Douglas County, Hospital
Authority Revenue......... 7.25% 10/1/98 72,450
----------
NEVADA -- 0.23%
A1/NR 95,000 Nevada Housing Division.... 5.35% 10/1/97 95,328
----------
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
CREDIT
RATINGS PRINCIPAL SECURITY MATURITY VALUE
(UNAUDITED) AMOUNT DESCRIPTION RATE DATE (NOTE 2)
----------- --------- ----------- ---- -------- --------
<C> <C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
NEW JERSEY -- 2.58%
NR/NR Evesham Township Fire
District No. 1 Tax Revenue
500,000 Anticipation Note.......... 4.15% 12/29/97 $ 500,185
AA/A1 Middlesex County Utilities
250,000 Sewer Authority............ 6.55% 2/15/98 254,955
Baa2/BBB 300,000 New Jersey Health Care...... 4.00% 7/1/97 300,000
----------
1,055,140
----------
NEW MEXICO -- 0.81%
A/NR 250,000 Alamagordo Municipal School
District................... 7.13% 1/15/08 256,228
Aa1/AA 75,000 New Mexico Management,
Finance Authority.......... 5.70% 1/1/98 75,632
----------
331,860
----------
NEW YORK -- 4.55%
Baa3/NR 145,000 New York City Industrial
Development Revenue........ 4.00% 8/1/97 145,012
NR/NR 575,000 New York City Industrial
Development Revenue, Series
I.......................... 8.00% 11/1/08 582,832
NR/NR 1,120,000 New York City Industrial
Development Revenue, Series
J.......................... 8.00% 11/1/08 1,137,158
----------
1,865,002
----------
OHIO -- 0.78%
A/A 300,000 Cleveland Ohio Airport
Systems Revenue............ 7.00% 1/1/06 307,539
Aaa/AAA 10,000 Ohio State Water Development
Authority.................. 8.00% 12/1/04 11,200
----------
318,739
----------
OKLAHOMA -- 0.23%
Aaa/AAA 90,000 Oklahoma State Industrial
Authority Revenue.......... 6.25% 10/1/02 93,600
----------
PENNSYLVANIA -- 15.90%
NR/A- 40,000 Allegheny County
Pennsylvania Hospital...... 7.50% 8/1/13 40,842
NR/AAA 60,000 Athens Pennsylvania Area
School Authority........... 6.25% 4/1/02 64,425
Aaa/NR 670,000 Chartiers Valley
Pennsylvania Industrial,
Colonial Building
Partner*................... 5.63% 7/1/97 673,444
Aa/AA 25,000 Chester County Solid Waste
Revenue, Series B.......... 6.65% 1/1/98 25,275
NR/BBB+ 95,000 Dauphin County General
Authority.................. 5.65% 1/1/99 95,950
NR/NR 85,000 Edgewood Pennsylvania School
District................... 5.90% 8/1/99 85,052
Aaa/NR 200,000 Ephrata Pennsylvania School
District................... 5.40% 12/15/97 201,432
NR/NR 25,000 Erie Public School Authority
School Revenue............. 6.50% 9/1/97 25,033
A+/A2 240,000 Greene County Pennsylvania
Industrial Development
Authority,
Pollution Control Revenue.. 6.30% 2/1/02 240,271
Aaa/AAA 15,000 Neshaminy Pennsylvania
School District............ 6.00% 6/1/09 15,131
Aaa/AAA 550,000 Pennsylvania Housing Finance
Authority, Single Family
Mortgage, Series 27........ 8.10% 10/1/10 569,250
A1/AA- 915,000 Pennsylvania State General
Obligation Revenue......... 5.50% 10/1/97 918,843
A1/AA- 395,000 Pennsylvania State General
Obligation Revenue......... 5.50% 10/1/97 396,659
A1/AA- 130,000 Pennsylvania State Highway,
Series T................... 5.00% 7/1/97 130,000
Aaa/AAA 115,000 Philadelphia Muni
Authority.................. 7.80% 4/1/18 125,062
Baa1/BBB+ 1,280,000 Philadelphia Hospital &
Higher Education Revenue... 5.05% 7/1/98 1,287,629
Aaa/AAA 415,000 Philadelphia Hospital &
Higher Education Authority,
Moss Rehabilitation
Hospital Revenue........... 6.90% 7/1/00 443,013
NR/BBB- 555,000 Scranton Lackawanna Health &
Welfare Authority.......... 4.75% 7/1/98 555,849
NR/NR 385,000 William Penn School
District................... 8.00% 8/1/00 423,981
NR/AAA 195,000 Windber Area Authority
Hospital Revenue, Windber
Hospital Project........... 4.75% 2/1/00 196,706
----------
6,513,847
----------
TENNESSEE -- 5.65%
VMG1/NR 80,000 Hamilton County Tennessee
Industrial Development*.... 6.25% 10/1/97 80,161
NR/A+ 400,000 Hendersonville Industrial
Development................ 5.38% 2/1/06 400,304
Aa3/NR 350,000 Industrial Development Board
of Fayetteville............ 4.75% 6/1/99 349,563
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1997
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS AMOUNT SECURITY MATURITY VALUE
(UNAUDITED) OR SHARES DESCRIPTION RATE DATE (NOTE 2)
----------- --------- ----------- ---- -------- --------
<C> <C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
TENNESSEE (CONTINUED)
Aa3/NR 400,000 Industrial Development
Board of Fayetteville..... 5.00% 6/1/99 $ 399,500
Aa/NR 210,000 Metro Gov Nashville........ 6.25% 7/1/02 216,825
Aa/NR 390,000 Metro Gov Nashville........ 6.25% 7/1/02 401,212
NR/AA 450,000 Shelby County Tennessee
Health & Housing.......... 6.00% 10/1/02 465,750
-----------
2,313,315
-----------
VIRGINIA -- 2.00%
NR/NR 540,000 King George County
Industrial Development
Authority, King County
Elementary School......... 4.88% 8/1/98 538,774
NR/AA 275,000 Virginia State Water &
Sewer Revenue, Series B... 8.70% 11/1/11 279,155
-----------
817,929
-----------
WASHINGTON -- 8.89%
Aaa/AAA Washington State Health
Care Facilities Authority
375,000 Revenue................... 7.40% 7/1/99 388,193
VMG1/NR Washington State Housing
300,000 Finance Community *....... 3.95% 7/1/97 300,000
NR/A+ Washington State Health
Care Facilities Authority
2,750,000 Revenue................... 7.88% 12/1/09 2,952,812
-----------
3,641,005
-----------
WEST VIRGINIA -- 4.02%
A1/AA- West Virginia State General
65,000 Obligation................ 5.75% 11/1/97 65,429
NR/NR Raleigh County West
725,000 Virginia.................. 8.25% 4/1/98 729,713
A/NR West Virginia Board of
Regents, University of
845,000 Virginia.................. 6.60% 4/1/06 850,780
-----------
1,645,922
-----------
WISCONSIN -- 0.61%
NR/A+ Wisconsin Health Facility
90,000 Authority................. 4.20% 2/1/98 90,032
Aa/AA Wisconsin Housing &
Economic Development
160,000 Authority, Series B....... 6.63% 9/1/20 161,000
-----------
251,032
-----------
TOTAL MUNICIPAL OBLIGATIONS
(COST $35,800,959)........ 35,891,216
-----------
SHORT-TERM INVESTMENTS --
9.42%
MONEY MARKET ACCOUNTS --
9.42%
Banker's Trust Money Market
1,930,000 Fund...................... 1,930,000
1,930,000 Provident Municash......... 1,930,000
-----------
TOTAL SHORT-TERM
INVESTMENTS (COST
$3,860,000)................ 3,860,000
-----------
TOTAL INVESTMENTS (COST
$39,660,959) (A) --
97.04%................... 39,751,216
-----------
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES --
2.96%.................... 1,211,566
-----------
NET ASSETS -- 100.00%...... $40,962,782
===========
</TABLE>
- --------
* Variable rate security. Rate represents rate in effect at June 30, 1997.
Maturity date reflects next rate change date.
(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............................................ $ 193,559
Unrealized depreciation............................................ (103,302)
---------
Net unrealized appreciation........................................ $ 90,257
=========
</TABLE>
AMT --Alternative Minimum Tax
LOC --Letter of Credit
See accompanying notes to financial statements.
31
<PAGE>
THE HIRTLE CALLAGHAN TRUST
CREDIT RATINGS (UNAUDITED)
<TABLE>
<CAPTION>
MOODY'S STANDARD & POOR'S
<S> <C> <C>
Aaa AAA Instruments judged to be of the highest quality and
carrying the smallest amount of investment risk.
Aa AA Instruments judged to be of a high quality by all standards.
A A Instruments judged to be adequate by all standards.
Baa BBB Instruments judged to be of modest quality by all standards.
VMG1 Instruments judged to be adequate by all standards.
NR NR Not rated. In the opinion of the investment advisor,
instrument judged to be of compatible investment quality to
rated securities which may be purchased by the portfolio.
</TABLE>
For items possessing the strongest investment attributes of their category,
Moody's gives that letter a rating followed by a number. The Standard & Poor's
ratings may be modified by the addition of a plus or minus sign to show
relative strength within the major rating categories.
32
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Assets and Liabilities June 30, 1997
<TABLE>
<CAPTION>
SMALL
CAPITALIZATION INTERNATIONAL LIMITED DURATION
VALUE EQUITY GROWTH EQUITY EQUITY EQUITY MUNICIPAL BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -------------- ------------- ----------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Total cost
$97,625,765;
$128,174,255;
$91,369,704;
$127,255,283; and
$39,660,959
respectively)......... $116,873,675 $159,399,152 $104,615,118 $144,950,458 $39,751,216
Repurchase agreements,
at cost................ -- 75,000 12,744,987 -- --
------------ ------------ ------------ ------------ -----------
Total Investments, at
value................. 116,873,675 159,474,152 117,360,105 144,950,458 39,751,216
Cash................... 37,074 766,130 -- 38,296 854,770
Foreign currency (cost
$0, $0, $0, $424,661,
$0).................... -- -- -- 421,205 --
Interest and dividends
receivable............. 160,897 82,795 143,637 491,819 555,830
Receivable from brokers
for investments sold... 687,678 1,855,243 65,606 410,471 --
Receivable from forward
currency contracts..... -- -- -- 45,407 --
Foreign tax reclaim.... -- -- -- 222,660 --
Deferred organizational
expense................ 19,538 19,852 19,757 19,420 20,328
Prepaid expenses and
other assets........... 12,288 12,130 32,038 34,482 25,981
------------ ------------ ------------ ------------ -----------
Total Assets......... 117,791,150 162,210,302 117,621,143 146,634,218 41,208,125
------------ ------------ ------------ ------------ -----------
LIABILITIES:
Dividends payable...... -- -- -- -- 148,775
Payable for investments
purchased.............. 528,022 1,093,142 4,014,254 220,906 41,056
Unrealized depreciation
on foreign currency
exchange contracts.... -- -- -- 8,959 --
Accrued expenses and
other payables:
Investment advisory
fees................... 33,566 45,974 44,706 53,019 7,679
Administration fees.... 9,591 13,135 8,942 11,782 --
Legal and audit fees... 31,444 44,084 30,795 27,255 8,443
Other.................. 96,846 52,727 42,918 190,345 39,390
------------ ------------ ------------ ------------ -----------
Total Liabilities.... 699,469 1,249,062 4,141,615 512,266 245,343
------------ ------------ ------------ ------------ -----------
117,091,681 160,961,240 113,479,528 146,121,952 40,962,782
============ ============ ============ ============ ===========
COMPOSITION OF NET
ASSETS:
Capital Stock.......... 8,125 11,772 8,760 11,376 4,081
Additional paid-in
capital................ 88,033,918 123,480,028 93,258,093 122,569,745 41,032,002
Undistributed net
investment income ..... 158,740 90,520 42,670 3,590,247 --
Accumulated
undistributed net
realized gains/
(losses) from
investment
transactions and
foreign currency
translation........... 9,642,988 6,154,023 6,924,591 2,267,824 (163,558)
Net unrealized
appreciation from
investments
and foreign currency
translation........... 19,247,910 31,224,897 13,245,414 17,682,760 90,257
------------ ------------ ------------ ------------ -----------
NET ASSETS.............. $117,091,681 $160,961,240 $113,479,528 $146,121,952 $40,962,782
============ ============ ============ ============ ===========
SHARES OF BENEFICIAL
INTEREST:
Shares of beneficial
interest outstanding... 8,125,355 11,771,630 8,760,246 11,375,857 4,081,395
============ ============ ============ ============ ===========
Net asset value--
offering and
redemption
price per share....... $14.41 $13.67 $12.95 $12.84 $10.04
============ ============ ============ ============ ===========
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Operations
For the Year Ended June 30, 1997
<TABLE>
<CAPTION>
SMALL
CAPITALIZATION INTERNATIONAL LIMITED DURATION
VALUE EQUITY GROWTH EQUITY EQUITY EQUITY MUNICIPAL BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -------------- ------------- ----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........ $ 114,048 $ 181,535 $ 342,392 $ 375,939 $1,738,938
Dividend income........ 2,151,933 1,179,268 865,342 2,866,308 11,351
Foreign tax
withholding............ (6,894) (2,032) -- (330,080) --
----------- ----------- ----------- ----------- ----------
Total Income......... 2,259,087 1,358,771 1,207,734 2,912,167 1,750,289
----------- ----------- ----------- ----------- ----------
EXPENSES:
Investment advisory
fees (Note 3).......... 268,873 390,066 373,090 424,428 64,927
Administration fees
(Note 3)............... 89,565 130,138 82,821 106,030 31,952
Fund accounting fees
and expenses (Note 3).. 41,312 39,548 43,743 68,148 36,658
Consulting fees (Note
3)..................... 44,605 65,417 41,020 52,703 16,428
Reports to
shareholders........... 14,633 13,204 12,470 14,878 4,327
Legal and audit fees... 41,043 34,084 38,302 35,730 19,989
Registration and filing
fees................... 18,954 13,031 18,470 32,670 9,609
Custodian fees......... 33,329 16,668 14,194 59,211 19,255
Trustees' fees and
expenses............... 2,246 3,250 4,184 4,738 2,536
Transfer agent fees
(Note 3)............... 8,559 8,249 8,982 10,782 5,020
Insurance costs........ 4,340 4,172 5,175 6,701 2,420
Amortization of
deferred organizational
expenses............... 5,968 5,968 5,968 5,968 5,968
Other.................. 8,141 1,241 2,527 5,065 4,550
----------- ----------- ----------- ----------- ----------
Total Expenses before
waivers and expenses
paid indirectly....... 581,568 725,036 650,946 827,052 223,639
Less: Expenses
voluntarily reduced.... -- -- -- -- (31,952)
Less: Expenses paid
indirectly............. (17,289) (2,506) (4,076) (2,818) (19,255)
----------- ----------- ----------- ----------- ----------
Total Expenses....... 564,279 722,530 646,870 824,234 172,432
----------- ----------- ----------- ----------- ----------
Net Investment Income.. 1,694,808 636,241 560,864 2,087,933 1,577,857
----------- ----------- ----------- ----------- ----------
REALIZED/UNREALIZED
GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains
(losses) from
investment
transactions.......... 11,284,813 8,397,467 7,442,963 3,745,532 (114,094)
Net realized gain on
foreign currency
transactions.......... -- -- -- 3,324,338 --
Net change in
unrealized
appreciation/
depreciation from
investments........... 15,566,341 20,723,713 8,992,626 12,636,531 176,715
Net change in
unrealized gain on
foreign currency
transactions.......... -- -- -- 209,295 --
----------- ----------- ----------- ----------- ----------
Net realized/unrealized
gains from
investments........... 26,851,154 29,121,180 16,435,589 19,915,696 62,621
----------- ----------- ----------- ----------- ----------
Change in net assets
resulting from
operations............. $28,545,962 $29,757,421 $16,996,453 $22,003,629 $1,640,478
=========== =========== =========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
SMALL CAPITALIZATION
VALUE EQUITY PORTFOLIO GROWTH EQUITY PORTFOLIO EQUITY PORTFOLIO
------------------------- -------------------------- -------------------------
YEAR PERIOD YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996(A) 1997 1996(B) 1997 1996(C)
------------ ----------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 1,694,808 $ 1,243,269 $ 636,241 $ 315,106 $ 560,864 $ 451,975
Net realized gains
(losses) from
investments and
foreign currency
transactions.......... 11,284,813 3,455,493 8,397,467 (1,676,431) 7,442,963 1,014,438
Net change in
unrealized
appreciation from
investments and
foreign currency
transactions.......... 15,566,341 3,681,569 20,723,713 10,501,184 8,992,626 4,252,788
------------ ----------- ------------ ------------ ------------ -----------
Change in net assets
resulting from
operations............ 28,545,962 8,380,331 29,757,421 9,139,859 16,996,453 5,719,201
------------ ----------- ------------ ------------ ------------ -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (1,536,068) (1,243,242) (545,676) (315,151) (518,366) (451,803)
From net realized
gains................. (4,971,574) (125,771) (567,013) -- (1,532,810) --
------------ ----------- ------------ ------------ ------------ -----------
Change in net assets
from shareholder
distributions......... (6,507,642) (1,369,013) (1,112,689) (315,151) (2,051,176) (451,803)
------------ ----------- ------------ ------------ ------------ -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 33,669,862 71,825,228 42,079,726 116,643,472 44,305,033 62,623,020
Dividends reinvested... 6,067,655 1,323,521 972,424 283,304 1,812,353 399,593
Cost of shares
redeemed.............. (16,186,788) (8,677,435) (21,272,202) (15,234,924) (9,085,673) (6,807,473)
------------ ----------- ------------ ------------ ------------ -----------
Change in net assets
from capital
transactions.......... 23,550,729 64,471,314 21,779,948 101,691,852 37,031,713 56,215,140
------------ ----------- ------------ ------------ ------------ -----------
Change in net assets... 45,589,049 71,482,632 50,424,680 110,516,560 51,976,990 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.......... $117,091,681 $71,502,632 $160,961,240 $110,536,560 $113,479,528 $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 accompanying notes to financial statements.
35
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
INTERNATIONAL LIMITED DURATION
EQUITY PORTFOLIO MUNICIPAL BOND PORTFOLIO
------------------------- --------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996(A) 1997 1996(B)
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 2,087,933 $ 855,126 $ 1,577,857 $ 734,790
Net realized gains
(losses) from
investments and
foreign currency
transactions.......... 7,069,870 2,394,013 (114,094) (49,464)
Net change in
unrealized
appreciation
(depreciation) from
investments and
foreign currency
transactions.......... 12,845,826 4,836,934 176,715 (86,458)
------------ ----------- ------------ ------------
Change in net assets
resulting from
operations............ 22,003,629 8,086,073 1,640,478 598,868
------------ ----------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (2,087,933) (1,399,229) (1,577,856) (762,952)
In excess of net
investment income..... (470,570) -- -- --
From net realized
gains................. (2,559,827) (31,312) -- --
------------ ----------- ------------ ------------
Change in net assets
from shareholder
distributions......... (5,118,330) (1,430,541) (1,577,856) (762,952)
------------ ----------- ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 58,555,291 73,530,380 59,269,604 43,425,188
Dividends reinvested... 4,492,529 1,306,700 1,406,537 703,436
Cost of shares
redeemed.............. (11,543,042) (3,780,737) (49,260,726) (14,499,795)
------------ ----------- ------------ ------------
Change in net assets
from capital
transactions.......... 51,504,778 71,056,343 11,415,415 29,628,829
------------ ----------- ------------ ------------
Change in net assets... 68,390,077 77,711,875 11,478,037 29,464,745
NET ASSETS:
Beginning of period.... 77,731,875 20,000 29,484,745 20,000
------------ ----------- ------------ ------------
End of period.......... $146,121,952 $77,731,875 $ 40,962,782 $ 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 accompanying notes to financial statements.
36
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements -- June 30, 1997
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. In valuing the Trust's
assets for calculating net asset value, readily marketable portfolio
securities listed on a national securities exchange or on NASDAQ are valued
at the last sale price on the business day as of which such value is being
determined. If there have been no sales on such exchange or on NASDAQ on
such day, the security is valued at the closing bid price on such day.
Readily marketable securities traded only in the over-the-counter market
and not on NASDAQ are valued at the current or last bid price. If no bid is
quoted on such day, the security is valued by such method as the Trust's
Board of Trustees ("the Board") shall determine in good faith to reflect
the security's fair value. All other assets of each portfolio are valued in
such manner as the Board in good faith deems appropriate to reflect their
fair value. Short-term obligations with maturities of 60 days or less are
valued at amortized cost, which constitutes fair value as determined by the
Board. 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. Repurchase Agreements. Among the instruments that each of the
Portfolios may use for temporary investment purposes are repurchase
agreements. Under the terms of a typical repurchase agreement, a Portfolio
would acquire an underlying debt security for a relatively short period
(usually not more than one week), subject
37
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1997
to an obligation of the seller to repurchase that security and the
obligation of the Portfolio to resell that security at an agreed-upon price
and time. Repurchase agreements could involve certain risks in the event of
default or insolvency of the other party, including possible delays or
restrictions upon the Portfolio's ability to dispose of the underlying
securities. The creditworthiness of those banks and non-bank dealers with
which the respective Portfolios may enter into repurchase agreements are
monitored in accordance with guidelines adopted by the Board, as is the
market value of the securities underlying any repurchase agreement to
ensure that the repurchase obligation of the seller is collateralized by an
amount at least equal to the repurchase price.
F. 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.
G. 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.
H. 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.
I. 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.
J. Other. The Portfolios maintain cash balances with their custodian and
receive a reduction of their custody fees and expenses for the amount of
interest earned on such uninvested cash balances. For financial reporting
purposes, for the period ended June 30, 1997, the amounts recorded on the
Statement of Operations as reimbursement of expenses were $17,289, $2,506,
$4,076, $2,818 and $19,255 for the Value, Growth, Small Cap, International
and Limited Duration Portfolios, respectively.
3. INVESTMENT ADVISORY, CONSULTING AND ADMINISTRATIVE CONTRACTS. The Trust
has entered into investment advisory contracts (the "Portfolio Management
Contracts") on behalf of each of the Portfolios with one or more Investment
Managers. Each Investment Manager is responsible for providing a continuous
program of investment management to, and placing all orders for, purchase and
sale of securities and other instruments on behalf of the respective
Portfolios they serve. Each Investment Manager is paid a fee based on average
net assets, calculated and accrued daily and paid monthly at annual rates of
0.30% for the Value and Growth Portfolios, 0.45% for the Small Cap Portfolio,
0.40% for the International Portfolio, and 0.20% for the Municipal Bond
Portfolio. For the year ended June 30, 1997, the Investment Managers earned
fees of $268,873, $390,066, $373,090, $424,428, and $64,927, for the Value,
Growth, Small Cap, International and Limited Duration Portfolios,
respectively.
38
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1997
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 year
ended June 30, 1997, HCCI earned fees of $44,605, $65,417, $41,020, $52,703,
and $16,428, for the Value, Growth, Small Cap, International and Limited
Duration Portfolios, respectively.
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 year ended June 30, 1997, 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, and 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 year ended June 30, 1997, the Portfolios paid to BISYS and
Furman, in the aggregate, $89,565 for the Value Portfolio; $130,138 for the
Growth Portfolio; $82,821 for the Small Cap Portfolio; $106,030 for the
International Portfolio; and $31,952 for the Limited Duration Portfolio. The
service providers waived fees of $31,952 for the Limited Duration Portfolio
during the year ending June 30, 1997.
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 year ended June 30, 1997, the respective Portfolios paid to BISYS
and Furman, in the aggregate, transfer agency fees of $8,559 for the Value
Portfolio; $8,249 for the Growth Portfolio; $8,982 for the Small Cap
Portfolio; $10,782 for the International Portfolio; and $5,020 for the Limited
Duration Portfolio.
Portfolio accounting services, including assistance in the calculation of
the net asset 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
39
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1997
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 year ended June 30, 1997, the
respective Portfolios paid to BISYS and Furman, in the aggregate, accounting
fees and related out-of-pocket expenses of $41,312 for the Value Portfolio;
$39,548 for the Growth Portfolio; $43,743 for the Small Cap Portfolio; $68,148
for the International Portfolio; and $36,658 for the Limited Duration
Portfolio.
4. PURCHASE AND SALE TRANSACTIONS. The aggregate amount of purchases and
sales of investment securities, other than short-term securities, for the year
ended June 30, 1997, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Value.................. $142,386,414 $ 84,114,300
Growth................. 124,658,415 100,915,161
Small Cap.............. 76,360,118 41,219,757
International.......... 78,720,683 30,797,212
Limited Duration....... 42,891,666 13,637,639
</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 year ended June 30, 1997, 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............. 2,653,857 3,481,209 3,801,423 5,060,425 5,907,089
Shares issued in
reinvestment of
dividends and
distributions........... 491,934 78,400 151,374 382,178 140,290
Shares redeemed......... (1,248,862) (1,718,176) (750,468) (972,868) (4,913,552)
---------- ---------- --------- ---------- ----------
Net increase in shares.. 1,896,929 1,841,433 3,202,329 4,469,735 1,133,827
---------- ---------- --------- ---------- ----------
Ending balance.......... 8,125,355 11,771,630 8,760,246 11,375,857 4,081,395
========== ========== ========= ========== ==========
</TABLE>
Transactions in shares of the Portfolios for the period ended June 30, 1996,
were as follows:
<TABLE>
<CAPTION>
LIMITED
VALUE GROWTH SMALL CAP INTERNATIONAL DURATION
--------- ---------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Beginning balance....... 2,000 2,000 2,000 2,000 2,000
--------- ---------- --------- --------- ----------
Shares sold............. 6,895,902 11,354,869 6,172,293 7,134,694 4,319,896
Shares issued in
reinvestment of
dividends and
distributions........... 118,398 26,496 39,271 120,738 70,048
Shares redeemed......... (787,874) (1,453,168) (655,647) (351,310) (1,444,376)
--------- ---------- --------- --------- ----------
Net increase in shares.. 6,226,426 9,928,197 5,555,917 6,904,122 2,945,568
--------- ---------- --------- --------- ----------
Ending balance.......... 6,228,426 9,930,197 5,557,917 6,906,122 2,947,568
========= ========== ========= ========= ==========
</TABLE>
6. DERIVATIVE INSTRUMENTS. The International Portfolio may invest in various
financial instruments including positions in forward currency contracts,
currency swaps and purchased foreign currency options. The Portfolio enters
into such contracts for the purpose of hedging exposure to changes in foreign
currency exchange rates on its holdings.
40
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1997
A forward foreign exchange contract is a commitment to sell or buy a foreign
currency at a future date at a negotiated exchange rate. The Portfolio bears
the market risk which arises from possible changes in foreign exchange values.
Risks may arise from the potential inability of counterparties to meet the
terms of their contracts and from unanticipated movements in the value of the
foreign currency relative to the U.S. dollar. Forward foreign exchange
contracts may involve market or credit risk in excess of the amounts reflected
on the Portfolio's statement of assets and liabilities.
The gain or loss from the difference between the cost of original contracts
and the amount realized upon closing of such contracts is included in net
realized gain on foreign currency transactions. Fluctuations in the value of
forward contracts held at June 30, 1997, are recorded for financial reporting
purposes as unrealized gains and losses by the Portfolio.
7. CAPITAL LOSS CARRYOVERS. As of June 30, 1997, the Limited Duration
Portfolio has capital loss carryforwards available to offset future capital
gains, if any, of $48,759 expiring in 2004 and $42,671 expiring in 2005.
41
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
VALUE GROWTH SMALL CAPITALIZATION
EQUITY PORTFOLIO EQUITY PORTFOLIO EQUITY PORTFOLIO
------------------ ------------------ ----------------------
YEAR PERIOD YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996(A) 1997 1996(B) 1997 1996(C)
-------- -------- -------- -------- ---------- ----------
<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... 0.23 0.22 0.06 0.04 0.07 0.10
Net realized and
unrealized gain on
investments and foreign
currency transactions.. 3.65 1.51 2.58 1.13 2.11 1.07
-------- ------- -------- -------- ---------- ---------
Total from Investment
Activities............. 3.88 1.73 2.64 1.17 2.18 1.17
-------- ------- -------- -------- ---------- ---------
Distributions
From net investment
income................. (0.21) (0.22) (0.05) (0.04) (0.07) (0.10)
From realized gains..... (0.74) (0.03) (0.05) -- (0.23) --
-------- ------- -------- -------- ---------- ---------
Total Distributions..... (0.95) (0.25) (0.10) (0.04) (0.30) (0.10)
-------- ------- -------- -------- ---------- ---------
Net Asset Value, End of
Period.................. $ 14.41 $ 11.48 $ 13.67 $ 11.13 $ 12.95 $ 11.07
======== ======= ======== ======== ========== =========
Total Return............. 35.28% 17.28%(e) 23.83% 11.69%(e) 19.88% 11.82%(e)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $117,092 $71,503 $160,961 $110,537 $ 113,480 $ 61,503
Ratio of expenses to
average net assets..... 0.63% 0.63%(d) 0.55% 0.63%(d) 0.78% 0.78%(d)
Ratio of net investment
income to average net
assets................. 1.89% 2.55%(d) 0.49% 0.46%(d) 0.68% 1.33%(d)
Ratio of expenses to
average net assets*.... 0.65% 0.68%(d) 0.55% 0.68%(d) 0.78% 0.90%(d)
Portfolio Turnover
Rate................... 97.39% 92.00%(e) 80.47% 80.00%(e) 54.16% 38.00%(e)
Average commission rate
paid (f)............... $ 0.0386 $ -- $ 0.0592 $ -- $ 0.0528 $ --
</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 the total number of shares purchased and sold by
the Portfolio for which commissions were charged. Disclosure is not
required for prior periods.
See accompanying notes to financial statements.
42
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
LIMITED DURATION
INTERNATIONAL MUNICIPAL
EQUITY PORTFOLIO BOND PORTFOLIO
------------------ ------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996(A) 1997 1996(B)
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period............................. $ 11.26 $ 10.00 $ 10.00 $ 10.00
-------- ------- ------- -------
Investment Activities
Net investment income............. 0.22 0.16 0.48 0.35
Net realized and unrealized gain
on investments and foreign
currency transactions............. 1.92 1.35 0.04 0.01
-------- ------- ------- -------
Total from Investment Activities.. 2.14 1.51 0.52 0.36
-------- ------- ------- -------
Distributions
From net investment income........ (0.22) (0.24) (0.48) (0.36)
In excess of net investment
income............................ (0.04) -- -- --
From realized gains............... (0.30) (0.01) -- --
-------- ------- ------- -------
Total Distributions............... (0.56) (0.25) (0.48) (0.36)
-------- ------- ------- -------
Net Asset Value, End of Period..... $ 12.84 $ 11.26 $ 10.04 $ 10.00
======== ======= ======= =======
Total Return....................... 19.61% 15.15%(e) 5.34% 3.60%(e)
Ratios/Supplementary Data:
Net Assets at end of period
(000)............................. $146,122 $77,732 $40,963 $29,485
Ratio of expenses to average net
assets............................ 0.78% 0.81%(c) 0.52% 0.53%(c)
Ratio of net investment income to
average net assets................ 1.97% 1.75%(c) 4.78% 4.78%(c)
Ratio of expenses to average net
assets*........................... 0.78% 0.92%(c) 0.68% 0.81%(c)
Portfolio Turnover Rate........... 29.85% 15.00%(e) 44.57% 116.00%(e)
Average commission rate paid (d).. $ 0.0254 $ -- $ -- $ --
</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 the total number of shares purchased and sold by
the Portfolio for which commissions were charged. Disclosure is not
required for prior periods.
(e) Not annualized.
See accompanying notes to financial statements.
43
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF THE HIRTLE CALLAGHAN TRUST
We have audited the accompanying statements of assets and liabilities,
including the portfolio of investments, of the Value Equity, Growth Equity,
Small Capitalization Equity, International Equity and Limited Duration
Municipal Bond Portfolios of the Hirtle Callaghan Trust (the "Trust") as of
June 30, 1997, the related statements of operations for the year then ended
and the statements of changes in net assets and financial highlights for each
of the periods presented. These financial statements and financial highlights
are the responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. Our procedures
included confirmation of securities owned as of June 30, 1997, by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
portfolio of the Hirtle Callaghan Trust as of June 30, 1997, and the results
of their operations for the year then ended and the changes in net assets and
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND, L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
August 15, 1997
44
<PAGE>
THE HIRTLE CALLAGHAN TRUST
TRUSTEES
DONALD E. CALLAGHAN*
JONATHAN J. HIRTLE*
ROSS H. GOODMAN
JARRETT B. KLING
DAVID M. SPUNGEN*
RICHARD W. WORTHAM
* "Interested Person" as that term is defined in the Investment Company Act of
1940.
- --------------------------------------------------------------------------------
SPONSOR COUNSEL
Stradley Ronon Stevens & Young
Hirtle Callaghan & Company, Inc. 2600 One Commerce Square
575 East Swedesford Road Philadelphia, Pennsylvania 19103
Wayne, Pennsylvania 19087
INDEPENDENT ACCOUNTANTS
ADMINISTRATOR AND DISTRIBUTOR
Coopers & Lybrand L.L.P.
BISYS Fund Services 2400 Eleven Penn Center
3435 Stelzer Road Philadelphia, Pennsylvania 19103
Columbus, Ohio 43219
CUSTODIAN
Bankers Trust Company
14 Wall Street
New York, New York 10005
This report is for the information of the shareholders of The Hirtle Callaghan
Trust. Its use in connection with any offering of the Trust's shares is
authorized only in case of a concurrent or prior delivery of the Trust's
current prospectus.
