<PAGE>
- --------------------------------------------------------------------------------
ANNUAL REPORT
THE HIRTLE CALLAGHAN TRUST
June 30, 1998
We are pleased to present the June 30, 1998 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 seven separate investment portfolios. Day-to-day
portfolio management services are provided to each of the Trust's 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.
Five of the Trust's Portfolios are covered in this report as follows:
- --------------------------------------------------------------------------------
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 year ending June 30, 1998.
ECONOMIC/CAPITAL MARKETS COMMENTARY
During the Trust's fiscal year, investors in both the stock and bond markets,
much like last year, spent a great deal of time speculating on the strength of
the economy. As the year progressed, however, this debate clarified itself.
The turmoil in Asian markets began in your first fiscal quarter and crested in
the second, with secondary shock waves still being felt. The debate concerning
U.S. economic growth slowly shifted to one concerning the impact of the "Asian
flu," with the consensus initially being that it was not a major concern to
our economy. This persisted until the end of the fiscal year (June 30, 1998),
but as we enter the new year, it is more generally accepted that Asia is,
indeed, impacting our economy and our equity market earnings picture.
The evolving economic slowdown produced a favorable bond market environment,
while the equity markets around the world experienced heightened levels of
volatility.
<TABLE>
<CAPTION>
1FQ98 2FQ98 3FQ98 4FQ98 FISCAL 98
------ ------ ------ ------ ---------
<S> <C> <C> <C> <C> <C>
S&P 500............................. 7.52% 2.87% 13.95% 3.30% 30.21%
Russell 2000........................ 14.88% -3.35% 10.06% -4.66% 16.50%
EAFE................................ -0.64% -7.77% 14.79% 1.13% 6.38%
Lehman Aggregate Bond Index......... 3.33% 2.95% 1.54% 2.34% 10.54%
</TABLE>
The index averages mask a great deal of internal turmoil. Note the very high
performance differential between large (S&P 500) and small (Russell 2000)
capitalization equities. The S&P 500 index was driven by its very largest
components, while all other more diverse indices were considerably weaker. In
the portfolio discussions that follow, we will be examining the continuing
challenges that active managers have faced.
Performance comparisons for each Portfolio are provided relative to their
respective benchmarks. 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.
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 & Poor's 500
Stock Index. As of June 30, 1998, the Portfolio's managers were Hotchkis and
Wiley (Hotchkis) 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......................... 30.8x 1.4% $70.6 billion
Total Portfolio....................... 23.1x 2.0% $26.4 billion
Hotchkis and Wiley.................... 20.2x 2.8% $20.6 billion
Institutional Capital................. 24.9x 1.4% $30.1 billion
</TABLE>
*Source: Evaluation Associates as of June 30, 1998
For the fiscal year ended June 30, 1998, the Hirtle Callaghan (HC) Value
Equity Portfolio had a total return of 23.42%, which compares to the S&P 500
Index return of 30.21%. The chart below shows the performance of the HC Value
Equity Portfolio in the context of the median performance of the EAI and
Morningstar peer group indicators:
--------------------------------------------
HC Trust Value Portfolio 23.42%
--------------------------------------------
S&P 500 Index 30.21%
--------------------------------------------
EAI Large Cap Value 22.90%
--------------------------------------------
Morningstar Large Cap Value 20.94%
--------------------------------------------
2
<PAGE>
Note that your managers outperformed their peer groups. Not shown is the fact
that your two managers delivered their better-than-peer-group performance at
different times throughout the period. Hotchkis outperformed ICAP in the first
two fiscal quarters and ICAP bested Hotchkis in the final two. They focus on
different segments of the value universe and are expected to add value at
different times. This diversification benefit was very evident in the last
year, which was not only a difficult one for active managers in general, but
especially so for managers concentrating on the value sector.
Value Equity Portfolio
Value of a $10,000 Investment
-------------------------------------------------------------------------
Value Equity Portfolio S&P 500 Stock Index
-------------------------------------------------------------------------
8/25/95 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
-------------------------------------------------------------------------
9/30/97 17441 17614
-------------------------------------------------------------------------
12/31/97 17390 18121
-------------------------------------------------------------------------
3/31/98 19331 20649
-------------------------------------------------------------------------
6/30/98 19582 21331
-------------------------------------------------------------------------
--------------------------------
Average Annual Total Return
As of June 30, 1998
--------------------------------
Since
Inception
1 Year (8/25/95)
--------------------------------
23.42% 26.60%
--------------------------------
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 & Poor's 500 Stock Index. As
of June 30, 1998, the Portfolio's managers were Jennison Associates LLC
(Jennison) and Goldman Sachs Asset Management (Goldman).
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 Goldman have differing assignments within the growth
segment of the large capitalization arena. Jennison concentrates on the
largest, fastest growing multinational companies in the large capitalization
growth area, while Goldman focuses on the entire large capitalization growth
segment.
<TABLE>
<CAPTION>
P/E RATIO YIELD AVERAGE MARKET CAP
--------- ----- ------------------
<S> <C> <C> <C>
S&P 500 Index........................... 30.8x 1.4% $70.6 billion
Total Portfolio......................... 32.8x 0.7% $54.9 billion
Jennison................................ 35.6x 0.7% $50.9 billion
Goldman................................. 28.2x 0.7% $62.4 billion
</TABLE>
*Source: Evaluation Associates as of June 30, 1998
For the fiscal year ended June 30, 1998, the HC Growth Equity Portfolio had a
total return of 37.00%, which compares to the S&P 500 Index return of 30.21%.
The chart below shows the performance of the HC Growth Equity Portfolio in the
context of the median performance of the EAI and Morningstar peer group
indicators:
-------------------------------------------
HC Trust Growth Portfolio 37.00%
-------------------------------------------
S&P 500 Index 30.21%
-------------------------------------------
EAI Large Cap Growth 31.90%
-------------------------------------------
Morningstar Large Cap Growth 30.94%
-------------------------------------------
4
<PAGE>
Note that your managers substantially outperformed their peer groups. Again,
much like the Value Portfolio managers, the two growth managers added value to
their index and peer group comparisons. Also important, each manager added
value at different times, a key strength the diversification they provided.
A manager change was made during the fiscal year. Goldman Sachs Asset
Management replaced Westfield Capital Management on October 1, 1997. As the
market in general advanced, the growth segment grew substantially, and
Westfield's mid capitalization focus continued to drift away from the core
objective of the Growth Portfolio. Accordingly, a search was conducted and
Goldman was selected.
The style Goldman utilizes is a unique, quantitative method of stock selection
that results in a portfolio which resembles many of the characteristics of the
large capitalization growth segment, yet allows for value added to that index.
Their approach, along with rigorous risk controls, have led to consistent
returns relative to appropriate benchmarks and peer groups.
Growth Equity Portfolio
Value of a $10,000 Investment
-------------------------------------------------------------------------
Growth Equity Portfolio S&P 500 Stock Index
-------------------------------------------------------------------------
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
-------------------------------------------------------------------------
9/30/97 16065 17662
-------------------------------------------------------------------------
12/31/97 15748 18169
-------------------------------------------------------------------------
3/31/98 18144 20704
-------------------------------------------------------------------------
6/30/98 18947 21388
-------------------------------------------------------------------------
--------------------------------
Average Annual Total Return
As of June 30, 1998
--------------------------------
Since
Inception
1 Year (8/8/95)
--------------------------------
37.00% 24.69%
--------------------------------
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, 1998, the Portfolio's managers were Frontier
Capital Management Company (Frontier) and Geewax, Terker & Co. (Geewax). Both
a growth (Frontier) and a value (Geewax) 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 1.1% $0.8 billion
Total Portfolio........................ 25.3x 0.8% $1.2 billion
Geewax Terker.......................... 22.2x 1.4% $1.4 billion
Frontier Capital....................... 29.0x 0.3% $1.0 billion
</TABLE>
*Source: Evaluation Associates as of June 30, 1998
For the fiscal year ended June 30, 1998, the HC Small Capitalization Equity
Portfolio had a total return of 12.66%, which compares to the Russell 2000
Index return of 16.50%. The chart below shows the performance of the HC Small
Capitalization Equity Portfolio in the context of the median performance of
the EAI and Morningstar peer group indicators:
----------------------------------------------
HC Trust Small Cap Portfolio 12.66%
----------------------------------------------
Russell 2000 Index 16.50%
----------------------------------------------
EAI Small Cap Equity 19.30%
----------------------------------------------
Morningstar Small Cap Equity 17.33%
----------------------------------------------
6
<PAGE>
The small capitalization segment of the market was highly volatile during the
fiscal year. Both the value and growth segments of the Portfolio were
negatively affected by the Asian crises' impact on U.S. markets, with value
performing marginally better than growth for the full period, especially
during the negative second and fourth fiscal quarters.
A manager change was made during the fiscal year. Geewax, Terker & Co.
replaced Clover Capital Management, Inc. on April 1, 1998. Clover's portfolio
characteristics and performance had not adequately captured the small
capitalization value segment of the marketplace. Accordingly, a search was
conducted and Geewax was selected.
The style Geewax utilizes is much like that employed by Goldman in the large
capitalization Growth Portfolio. It employs a quantitative method of stock
selection that results in a portfolio which resembles many of the
characteristics of the small capitalization value segment, yet allows for
value added to that index. In addition, Geewax had proven itself adept at
minimizing transaction costs, an important element of performance in the small
capitalization segment in general.
Small Capitalization Equity Portfolio
Value of a $10,000 Investment
- -------------------------------------------------------------------------------
Small Capitalization Equity Portfolio Russell 2000 Index
- -------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------
9/30/97 15738 15337
- -------------------------------------------------------------------------------
12/31/97 15020 14823
- -------------------------------------------------------------------------------
3/31/98 15967 16314
- -------------------------------------------------------------------------------
6/30/98 15102 15553
- -------------------------------------------------------------------------------
--------------------------------
Average Annual Total Return
As of June 30, 1998
--------------------------------
Since
Inception
1 Year (9/5/95)
--------------------------------
12.66% 15.74%
--------------------------------
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.
Equity securities of smaller companies may involve greater risk than is
customarily associated with investments in larger, more established companies.
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 on non-U.S. issuers. As of
June 30, 1998, 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......................... 29.9x 1.8% $32.2 billion
Brinson Partners........................ 26.2x 2.2% $28.0 billion
</TABLE>
In addition, Brinson has structured a portfolio which is generally aligned
with the major components of the Morgan Stanley Capital International (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, 1998, the HC International Equity Portfolio
had a total return of 5.91%, which compares to the MSCI EAFE Index return of
6.38%. The chart below shows the performance of the HC International Equity
Portfolio in the context of the median performance of the EAI and Morningstar
peer group indicators:
------------------------------------------------
HC Trust International Portfolio 5.91%
------------------------------------------------
MSCI EAFE Index 6.38%
------------------------------------------------
EAI Non-U.S. Equity 11.10%
------------------------------------------------
Morningstar Foreign Stock 8.35%
------------------------------------------------
Brinson outperformed the EAFE index in the first two fiscal quarters, which
were very weak (Brinson -6.55% vs EAFE -8.36%), but lost ground in the final
two quarters. Their value oriented, top-down core approach has added
significant value to our Portfolio since inception (Brinson annualized returns
at 14.06% vs EAFE at 10.59%).
8
<PAGE>
Brinson entered the 1999 fiscal year modestly underweight Japanese equities vs
the EAFE Index (15% vs 21%) and also underweight the yen (16% vs 21%). It is
interesting to note that the Japanese equities markets, for the first time in
memory, are no longer the largest component of the EAFE index, with the United
Kingdom now at 22%.
International Equity Portfolio
Value of a $10,000 Investment
------------------------------------------------------------------------------
Morgan Stanley Europe
International Equity Portfolio Australia & Far East
------------------------------------------------------------------------------
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
------------------------------------------------------------------------------
9/30/97 13840 12497
------------------------------------------------------------------------------
12/31/97 12872 11527
------------------------------------------------------------------------------
3/31/98 14562 13231
------------------------------------------------------------------------------
6/30/98 14589 13381
------------------------------------------------------------------------------
--------------------------------
Average Annual Total Return
As of June 30, 1998
--------------------------------
Since
Inception
1 Year (8/17/95)
--------------------------------
5.91% 14.06%
--------------------------------
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.
Investments in securities of foreign issuers may involve risks not ordinarily
associated with investment in domestic securities.
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 Standard & Poor's Corp. or Aa by Moody's Investors Service. As
of June 30, 1998, the HC Limited Duration Municipal Bond Portfolio was managed
by Morgan Grenfell Capital Management, Inc. (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........ 1.6 yrs NA AA
Morgan Grenfell....................... 2.1 yrs 4.6% AA
</TABLE>
For the fiscal year ended June 30, 1998, the HC Limited Duration Municipal
Bond Portfolio had a total return of 5.48%, which compares to the Merrill
Lynch 0-3 Yr Muni Bond Index return of 4.77%.
Given the very conservative, risk averse intent of this Portfolio, we are very
pleased with its performance. The value of the Limited Duration 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.
Limited Duration Municipal Bond Portfolio
Value of a $10,000 Investment
------------------------------------------------------------------------------
Limited Duration Municipal Merrill Lynch 0-3 Year
Bond Portfolio Municipal Index
------------------------------------------------------------------------------
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
------------------------------------------------------------------------------
9/30/97 11097 10912
------------------------------------------------------------------------------
12/31/97 11273 11046
------------------------------------------------------------------------------
3/31/98 11366 11167
------------------------------------------------------------------------------
6/30/98 11510 11276
------------------------------------------------------------------------------
--------------------------------
Average Annual Total Return
As of June 30, 1998
--------------------------------
Since
Inception
1 Year (10/10/95)
--------------------------------
5.48% 5.30%
--------------------------------
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 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 Portfolio
is now operating well within the projected expense ratios, with total Trust
assets at the end of the fiscal year of $820 million.
As a measure of the progress we have made in the past year, the following
expense ratios reflect the efficiencies we have achieved:
<TABLE>
<CAPTION>
EXPENSE RATIO FISCAL 1998 FISCAL 1997
------------- ----------- -----------
<S> <C> <C>
Value.............................................. 0.52% 0.63%
Growth............................................. 0.53% 0.55%
Small Cap.......................................... 0.70% 0.78%
International...................................... 0.70% 0.78%
Limited Duration................................... 0.47% 0.52%
</TABLE>
We expect that the overall impact of our efforts to control costs in these
portfolios will save our clients $563,000 in the coming fiscal year at present
asset levels. We are very proud of this achievement.
Every basis point of future 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, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS -- 97.93%
HOTCHKIS & WILEY -- 38.35%
AEROSPACE/DEFENSE -- 1.03%
3,600 Lockheed Martin Corp.................................. $ 381,150
14,000 Northrop Grumman Corp................................. 1,443,750
------------
1,824,900
------------
AUTO PARTS -- 0.37%
11,000 Dana Corp............................................. 588,500
2,566 Meritor Automotive, Inc............................... 61,584
------------
650,084
------------
AUTOMOBILE PRODUCTION -- 2.51%
39,200 Ford Motor Co......................................... 2,312,800
31,700 General Motors Corp................................... 2,117,956
------------
4,430,756
------------
BANKING -- 3.27%
22,200 Ahmanson H.F. & Co.................................... 1,576,199
9,000 Banc One Corp......................................... 502,313
9,500 First Chicago Corp.................................... 841,938
22,990 First Union Corp...................................... 1,339,168
27,400 Keycorp............................................... 976,125
19,800 Washington Federal, Inc............................... 546,975
------------
5,782,718
------------
CHEMICALS -- 1.15%
13,500 Dow Chemical Co....................................... 1,305,282
10,000 Eastman Chemical Co................................... 622,500
2,950 Millenium Chemicals................................... 99,931
------------
2,027,713
------------
ENVIRONMENTAL SERVICES -- 0.36%
18,106 Browning-Ferris Industries, Inc....................... 629,184
------------
FINANCIAL SERVICES -- 1.82%
10,273 Associates First Capital Corp......................... 789,737
6,500 Beneficial Corp....................................... 995,719
22,100 Fannie Mae............................................ 1,342,574
4,000 Harleysville Group, Inc............................... 83,000
------------
3,211,030
------------
FURNITURE & APPLIANCES -- 1.05%
27,000 Whirlpool Corp........................................ 1,856,250
------------
HOLDING COMPANIES --
DIVERSIFIED -- 0.55%
5,162 Energy Group PLC - ADR................................ 305,203
17,500 Fortune Brands, Inc................................... 672,657
------------
977,860
------------
HOUSEHOLD PRUDUCTS -- 0.32%
20,000 Tupperware Corp....................................... 562,500
------------
INSURANCE -- 3.42%
18,500 American General Corp................................. 1,316,969
12,400 Lincoln National Corp................................. 1,133,050
11,400 Ohio Casualty Corp.................................... 504,450
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
INSURANCE (CONTINUED)
23,200 SAFECO Corp........................................... $ 1,054,150
20,000 St. Paul Co........................................... 841,250
29,400 TIG Holdings, Inc..................................... 676,200
4,400 Transamerica Corp..................................... 506,550
------------
6,032,619
------------
MACHINERY & ENGINEERING -- 0.63%
56,900 New Holland NV........................................ 1,116,663
------------
MANUFACTURING -- 0.45%
17,500 Harsco Corp........................................... 801,719
------------
METALS -- 1.53%
11,500 Phelps Dodge Corp..................................... 657,656
23,600 Reynolds Metals Co.................................... 1,320,125
21,900 USX-U.S. Steel Group, Inc............................. 722,700
------------
2,700,481
------------
OIL & GAS -- 4.02%
17,400 Atlantic Richfield Co................................. 1,359,375
5,000 Equitable Resources, Inc.............................. 152,500
63,000 Occidental Petroleum Corp............................. 1,700,999
33,000 Phillips Petroleum Co................................. 1,590,188
33,200 Tenneco, Inc.......................................... 1,263,675
30,000 USX-Marathon Group.................................... 1,029,375
------------
7,096,112
------------
PAPER PRODUCTS -- 2.14%
7,200 Georgia-Pacific Group................................. 424,350
27,100 Georgia-Pacific Timber Co............................. 623,300
21,100 International Paper Co................................ 907,300
11,000 Union Camp Corp....................................... 545,875
27,500 Weyerhaeuser Co....................................... 1,270,156
------------
3,770,981
------------
PHARMACEUTICALS -- 0.21%
8,000 Pharmacia & Upjohn, Inc............................... 369,000
------------
PHOTOGRAPHY -- 0.63%
15,300 Eastman Kodak Co...................................... 1,117,856
------------
POLLUTION CONTROL -- 0.60%
30,300 Waste Management, Inc................................. 1,060,500
------------
RAILROADS -- 0.31%
12,000 CSX Corp.............................................. 546,000
------------
RAW MATERIALS -- 0.96%
14,800 Aluminum Co. of America............................... 975,875
23,000 Ultramar Diamond Shamrock Corp........................ 725,938
------------
1,701,813
------------
RETAIL -- 1.64%
12,500 Intimate Brands, Inc.................................. 344,531
10,800 May Department Stores, Inc............................ 707,400
13,800 Penney (J.C.) Co...................................... 997,913
14,000 Sears Roebuck & Co.................................... 854,875
------------
2,904,719
------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
HOTCHKIS & WILEY (CONTINUED)
TECHNOLOGY -- 0.21%
7,700 Rockwell International Corp........................... $ 370,081
------------
TELECOMMUNICATIONS -- 2.03%
16,000 Alltel Corp........................................... 744,000
25,600 AT&T Corp............................................. 1,462,400
13,362 Bell Atlantic Corp.................................... 609,641
19,016 SBC Communications, Inc............................... 760,640
------------
3,576,681
------------
TEXTILES -- 0.33%
19,500 Russell Corp.......................................... 588,656
------------
TOBACCO -- 1.28%
57,300 Philip Morris Companies, Inc.......................... 2,256,188
------------
TRANSPORTATION -- 0.80%
22,600 Norfolk Southern Corp................................. 673,763
23,500 Ryder Systems, Inc.................................... 741,718
------------
1,415,481
------------
UTILITIES -- 4.73%
17,300 CMS Energy Corp....................................... 761,200
24,500 Central & South West Corp............................. 658,438
40,000 Edison International.................................. 1,182,499
29,400 Entergy Corp.......................................... 845,250
44,500 Illinova Corp......................................... 1,334,999
11,100 MCN Corp.............................................. 276,113
36,000 PECO Energy Corp...................................... 1,050,750
2,000 Piedmont Natural Gas Co............................... 67,250
50,100 PP&L Resources, Inc................................... 1,136,643
34,600 SCANA Corp............................................ 1,031,513
------------
8,344,655
------------
TOTAL -- HOTCHKIS & WILEY
(COST $54,360,062)................................... 67,723,200
------------
INSTITUTIONAL CAPITAL
CORP. -- 59.58%
AEROSPACE/DEFENSE -- 3.58%
28,000 Goodrich (B.F.) Co.................................... 1,389,500
18,150 Northrop Grumman Corp................................. 1,871,719
53,108 Raytheon Co., Class A................................. 3,060,348
------------
6,321,567
------------
AIRLINES & SERVICES -- 1.23%
26,150 AMR Corp.*............................................ 2,176,988
------------
AUTOMOBILE PRODUCTION -- 1.77%
46,750 General Motors Corp................................... 3,123,484
------------
BANKING -- 5.87%
21,050 Bankers Trust Corp.................................... 2,443,116
26,000 Citicorp.............................................. 3,880,499
52,700 NationsBank Corp...................................... 4,031,558
------------
10,355,173
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
CHEMICALS -- 6.06%
22,500 Akzo Nobel NV - ADR................................... $ 2,494,688
37,900 DuPont E.I. De Nemours & Co........................... 2,828,288
81,500 Hoechst AG - ADR...................................... 4,044,437
44,298 IMC Global, Inc....................................... 1,334,477
------------
10,701,890
------------
COMPUTER SOFTWARE &
SERVICES -- 1.15%
60,800 First Data Corp....................................... 2,025,400
------------
COMPUTER SYSTEMS -- 1.69%
26,000 International Business Machines Corp.................. 2,985,125
------------
COMPUTERS -- 0.61%
33,100 NCR Corp.*............................................ 1,075,750
------------
ELECTRONIC COMPONENTS & INSTRUMENTS -- 2.20%
45,700 Philips Electronics NV................................ 3,884,500
------------
ENTERTAINMENT -- 4.23%
105,150 Host Marriott Corp.*.................................. 1,872,984
198,100 News Corp. Ltd. - ADR................................. 5,596,325
------------
7,469,309
------------
ENVIRONMENTAL SERVICES -- 1.80%
64,450 U.S.A. Waste Services, Inc.*.......................... 3,182,219
------------
FINANCIAL SERVICES -- 1.39%
49,500 Household International, Inc.......................... 2,462,625
------------
HEALTH CARE -- 1.87%
36,600 Humana, Inc.*......................................... 1,141,463
69,000 Tenet Healthcare Corp.*............................... 2,156,250
------------
3,297,713
------------
INSURANCE -- 1.39%
35,650 Cigna Corp............................................ 2,459,850
------------
MACHINERY & ENGINEERING -- 1.04%
37,950 Case Corp............................................. 1,831,088
------------
MEDICAL EQUIPMENT &
SUPPLIES -- 1.75%
44,700 Baxter International, Inc............................. 2,405,419
18,700 Saint Jude Medical, Inc.*............................. 688,394
------------
3,093,813
------------
METALS -- 1.18%
37,150 Reynolds Metals Co.................................... 2,078,078
------------
OIL & GAS -- 3.80%
39,440 Elf Aquitane Group - ADR.............................. 2,800,240
30,900 Schlumberger Ltd...................................... 2,110,856
50,500 Unocal Corp........................................... 1,805,375
------------
6,716,471
------------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
INSTITUTIONAL CAPITAL
CORP. (CONTINUED)
PAPER PRODUCTS -- 1.96%
49,800 Fort James Corp...................................... $ 2,216,100
45,100 UPM-Kymmene Oyj - ADR................................ 1,241,152
------------
3,457,252
------------
PHARMACEUTICALS -- 2.28%
77,800 American Home Products Corp.......................... 4,026,150
------------
PUBLISHING & PRINTING -- 1.32%
64,350 Dun & Bradstreet Corp................................ 2,324,644
------------
RETAIL -- 2.14%
12,000 Circuit City Stores-Circuit City Group............... 562,500
21,800 Consolidated Stores Corp.*........................... 790,250
45,050 Federated Department Stores, Inc.*................... 2,424,253
------------
3,777,003
------------
TELECOMMUNICATIONS -- 1.26%
17,800 AT&T Corp............................................ 1,016,825
26,602 Bell Atlantic Corp................................... 1,213,716
------------
2,230,541
------------
TOBACCO -- 1.91%
85,700 Philip Morris Companies, Inc......................... 3,374,438
------------
TOYS -- 0.91%
40,850 Hasbro, Inc.......................................... 1,605,916
------------
TRANSPORTATION -- 3.72%
33,500 Burlington Northern Santa Fe Corp.................... 3,289,281
115,700 Canadian Pacific Ltd................................. 3,282,988
------------
6,572,269
------------
WINE & SPIRITS -- 1.47%
63,500 Seagram Co. Ltd...................................... 2,599,531
------------
TOTAL -- INSTITUTIONAL CAPITAL CORP. (COST
$94,489,560)........................................ 105,208,787
------------
TOTAL -- COMMON STOCKS (COST $148,849,622)........... 172,931,987
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
SHORT-TERM INVESTMENTS -- 1.82%
HOTCHKIS & WILEY -- 0.59%
FINANCIAL SERVICES -- 0.59%
1,044,736 American Express Corp., Commercial Paper, 5.00%,
7/1/98.............................................. $ 1,044,736
------------
INSTITUTIONAL CAPITAL CORP.
PORTFOLIO -- 1.23%
BUSINESS EQUIPMENT &
SERVICES -- 1.08%
1,900,000 Pitney Bowes, Inc., Commercial Paper, 6.03%, 7/1/98.. 1,900,000
------------
CASH EQUIVALENTS -- 0.15%
269,449 Bankers Trust Cash Sweep............................. 269,449
------------
2,169,449
------------
TOTAL -- SHORT-TERM INVESTMENTS (COST $3,214,185).... 3,214,185
------------
TOTAL INVESTMENTS (COST $152,063,807) (a) -- 99.75%.. 176,146,172
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.25%................................ 441,008
------------
TOTAL NET ASSETS -- 100.00%.......................... $176,587,180
============
</TABLE>
- --------
* Non-income producing securities.
ADR--American Depository Receipt
(a) At June 30, 1998, the cost of investment securities for income tax
purposes was $152,133,573. Cost for federal income tax purposes differs
from value of net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $27,036,924
Unrealized depreciation.......................................... (3,024,325)
-----------
Net unrealized appreciation...................................... $24,012,599
===========
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS -- 98.17%
JENNISON ASSOCIATES LLC -- 64.50%
AEROSPACE/DEFENSE -- 1.05%
50,800 Boeing Co............................................. $ 2,263,775
------------
BANKING -- 5.51%
59,400 Chase Manhattan Corp.................................. 4,484,769
28,200 Citicorp.............................................. 4,208,850
21,600 Fleet Financial Group, Inc............................ 1,803,600
70,200 Hibernia Corp. - Class A.............................. 1,417,163
------------
11,914,382
------------
BUSINESS EQUIPMENT &
SERVICES -- 0.95%
24,600 Catalina Marketing Corp.*............................. 1,277,663
22,200 Gartner Group, Inc.*.................................. 777,000
------------
2,054,663
------------
COMPUTER HARDWARE -- 1.17%
27,200 Dell Computer Corp.*.................................. 2,524,500
------------
COMPUTER SOFTWARE -- 6.19%
34,900 Cadence Design Systems, Inc.*......................... 1,090,625
32,700 Compuware Corp.*...................................... 1,671,788
33,000 Intuit*............................................... 2,021,250
31,900 Microsoft Corp.*...................................... 3,457,162
45,700 Oracle Corp.*......................................... 1,122,506
79,100 Platinum Technology, Inc.*............................ 2,259,294
115,500 Rational Software Corp.*.............................. 1,761,375
------------
13,384,000
------------
COMPUTER SYSTEMS/
PERIPHERALS -- 4.26%
82,000 Compaq Computer Corp.................................. 2,326,750
41,300 Hewlett Packard Co.................................... 2,472,837
20,500 International Business Machines Corp.................. 2,353,656
54,150 Symbol Technologies, Inc.............................. 2,044,163
------------
9,197,406
------------
ELECTRONIC EQUIPMENT -- 2.84%
38,800 Ciena Corp.*.......................................... 2,701,450
37,700 General Electric Co................................... 3,430,700
------------
6,132,150
------------
FINANCIAL SERVICES -- 4.72%
28,700 Associates First Capital.............................. 2,206,313
42,425 MBNA Corp............................................. 1,400,025
24,200 Merrill Lynch......................................... 2,232,450
36,950 Morgan Stanley/Dean Witter Discover................... 3,376,306
30,200 Schwab (Charles) Corp................................. 981,500
------------
10,196,594
------------
HEALTH CARE -- 0.66%
53,700 Healthsouth Corp.*.................................... 1,433,119
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
HOUSEHOLD PRODUCTS -- 1.01%
38,600 Gillette Co........................................... $ 2,188,138
------------
INSURANCE -- 1.89%
52,400 Ace Limited........................................... 2,043,600
36,700 Unum Corp............................................. 2,036,850
------------
4,080,450
------------
LODGING -- 2.08%
96,100 Hilton Hotels Corp.................................... 2,738,850
45,432 Promus Hotel Corp.*................................... 1,749,132
------------
4,487,982
------------
MACHINERY & EQUIPMENT -- 0.56%
24,900 Case Corp............................................. 1,201,425
------------
MEDIA -- 1.49%
76,100 CBS Corp.............................................. 2,416,175
7,700 The Walt Disney Co.................................... 808,981
------------
3,225,156
------------
NETWORKING -- 3.17%
44,800 3 Com Corp.*.......................................... 1,374,800
28,100 Ascend Communications, Inc.*.......................... 1,392,706
44,450 Cisco Systems, Inc.*.................................. 4,092,178
------------
6,859,684
------------
OIL SERVICES -- 0.87%
27,600 Schlumberger Ltd...................................... 1,885,425
------------
PHARMACEUTICALS -- 8.30%
55,400 American Home Products Corp........................... 2,866,950
42,400 Eli Lilly & Co........................................ 2,801,050
53,900 Monsanto.............................................. 3,011,662
38,200 Pfizer, Inc........................................... 4,151,862
30,600 Schering Plough Corp.................................. 2,803,725
33,100 Warner Lambert Co..................................... 2,296,313
------------
17,931,562
------------
PUBLISHING -- 1.03%
44,600 Omnicom Group, Inc.................................... 2,224,425
------------
RETAIL -- 5.66%
53,345 Dollar General Corp................................... 2,110,462
37,300 Gap, Inc.............................................. 2,298,613
34,300 Home Depot............................................ 2,849,043
47,800 Kohl's Corp.*......................................... 2,479,625
41,000 Sears, Roebuck & Co................................... 2,503,562
------------
12,241,305
------------
SAVINGS & LOANS -- 1.46%
72,750 Washington Mutual, Inc................................ 3,160,078
------------
SEMICONDUCTORS -- 3.40%
46,900 Applied Materials, Inc.*.............................. 1,383,550
29,100 Intel Corp............................................ 2,157,038
59,900 International Rectifier Corp.*........................ 509,150
28,500 KLA Tencor Corp.*..................................... 789,094
43,100 Texas Instruments..................................... 2,513,268
------------
7,352,100
------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
JENNISON ASSOCIATES LLC (CONTINUED)
TELECOMMUNICATIONS -- 5.64%
33,900 Airtouch Communications*........................... $ 1,981,031
31,100 Nokia Corp. - ADR.................................. 2,256,694
30,300 Tellabs, Inc.*..................................... 2,170,238
10,500 Vodafone Group PLC - ADR........................... 1,323,656
91,900 Worldcom, Inc.*.................................... 4,451,406
--------------
12,183,025
--------------
OTHER TRANSPORTATION -- 0.59%
20,400 FDX Corp.*......................................... 1,280,100
--------------
TOTAL -- JENNISON ASSOCIATES LLC (COST
$103,126,507)..................................... 139,401,444
--------------
GOLDMAN SACHS ASSET
MANAGEMENT -- 33.67%
AIRLINES -- 1.57%
15,100 Alaska Airgroup, Inc.*............................. 823,894
36,100 America West Airlines, Inc. -
Class B*.......................................... 1,031,106
12,600 AMR Corp.*......................................... 1,048,950
6,200 UAL Corp.*......................................... 483,600
--------------
3,387,550
--------------
APPAREL -- 0.18%
3,800 Jones Apparel Group*............................... 138,938
7,900 Westpoint Stevens, Inc.*........................... 260,700
--------------
399,638
--------------
AUTOMOTIVE -- 0.18%
6,600 Ford Motor Co...................................... 389,400
--------------
BANKING -- 0.37%
9,200 BankAmerica Corp................................... 795,225
--------------
BEVERAGES -- 0.12%
7,600 Coors Adolph Co.................................... 258,400
--------------
CHEMICALS -- 0.99%
5,700 Aptargroup, Inc.................................... 354,469
7,100 Dow Chemical Co.................................... 686,481
8,300 IMC Global, Inc.................................... 250,038
18,300 Solutia, Inc....................................... 524,981
14,700 Wellman............................................ 333,506
--------------
2,149,475
--------------
CLOTHING -- 0.91%
4,500 Footstar, Inc.*.................................... 216,000
15,300 Intimate Brands, Inc............................... 421,706
15,600 Ross Stores, Inc................................... 670,800
27,000 TJX Companies, Inc................................. 651,375
--------------
1,959,881
--------------
COMPUTER HARDWARE -- 1.33%
15,000 Compaq Computer Corp............................... 425,625
12,400 Ingram Micro, Inc.*................................ 548,700
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMPUTER HARDWARE (CONTINUED)
13,400 Sun Microsystems*..................................... $ 582,063
13,400 Tech Data*............................................ 574,525
7,400 Xerox Corp............................................ 752,025
------------
2,882,938
------------
COMPUTER SOFTWARE -- 1.60%
50,100 Learning Company, Inc.*............................... 1,484,213
18,300 Microsoft Corp.*...................................... 1,983,262
------------
3,467,475
------------
CONSTRUCTION -- 0.21%
8,500 USG Corp.*............................................ 460,063
------------
CONSUMER DURABLES -- 0.26%
6,100 Ethan Allen Interiors, Inc............................ 304,618
10,700 Pier One Imports...................................... 255,463
------------
560,081
------------
DEPARTMENT STORES -- 1.44%
30,300 Dayton Hudson......................................... 1,469,550
20,900 Federated Department Stores*.......................... 1,124,681
12,900 Proffitts, Inc.*...................................... 520,838
------------
3,115,069
------------
DRUGS -- 4.09%
19,300 Bergen Brunswig Corp.................................. 895,038
6,600 Bristol-Myers Squibb Co............................... 758,588
4,400 Cardinal Health, Inc.................................. 412,500
3,200 Eli Lilly & Co........................................ 211,400
16,200 Merck & Co., Inc...................................... 2,166,749
13,700 Pfizer, Inc........................................... 1,489,018
14,700 Schering Plough Corp.................................. 1,346,888
22,500 Warner Lambert Co..................................... 1,560,937
------------
8,841,118
------------
ELECTRIC UTILITY -- 0.12%
6,100 Energy East Corp...................................... 253,913
------------
ELECTRONIC EQUIPMENT -- 0.70%
14,200 General Motors - Class H.............................. 669,175
10,100 Lucent Technologies Corp.............................. 840,194
------------
1,509,369
------------
ENTERTAINMENT -- 0.47%
9,600 The Walt Disney Co.................................... 1,008,600
------------
FINANCIAL SERVICES -- 2.20%
5,300 American Express Co................................... 604,200
9,900 C.I.T. Group, Inc..................................... 371,250
11,000 Fannie Mae............................................ 668,250
34,100 General Electric Co................................... 3,103,099
------------
4,746,799
------------
FOOD & BEVERAGES -- 1.01%
25,500 Coca Cola Co.......................................... 2,180,250
------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
GOLDMAN SACHS ASSET
MANAGEMENT (CONTINUED)
GROCERY -- 1.15%
29,100 Kroger Co.*.......................................... $ 1,247,662
30,600 Safeway, Inc.*....................................... 1,245,038
-------------
2,492,700
-------------
HEAVY MACHINERY -- 0.46%
5,500 Case Corp............................................ 265,375
4,100 Caterpillar, Inc..................................... 216,788
4,000 Nacco Industries, Inc................................ 517,000
-------------
999,163
-------------
HOUSEHOLD PRODUCTS -- 0.98%
10,600 Premark International................................ 341,850
19,400 Procter & Gamble Co.................................. 1,766,613
-------------
2,108,463
-------------
INDUSTRIAL PARTS -- 0.65%
7,600 American Standard Companies*......................... 339,625
15,700 Coltec Industries*................................... 312,038
8,600 Danaher Corp......................................... 315,513
4,800 United Technologies Corp............................. 443,999
-------------
1,411,175
-------------
INDUSTRIAL SERVICES -- 0.57%
27,600 Hertz Corp........................................... 1,223,025
-------------
INFORMATION SERVICES -- 0.49%
7,700 Ceridian Corp.*...................................... 452,375
15,700 Valassis Communications*............................. 605,431
-------------
1,057,806
-------------
LEISURE -- 0.19%
5,700 Eastman Kodak Co..................................... 416,456
-------------
MEDIA -- 0.35%
31,000 Belo (A.H.) Corp..................................... 755,625
-------------
MEDICAL PRODUCTS -- 0.89%
11,700 Dexter Corp.......................................... 372,206
14,900 Johnson & Johnson.................................... 1,098,875
7,100 Tyco International................................... 447,300
-------------
1,918,381
-------------
MEDICAL PROVIDERS -- 1.70%
51,300 Beverly Enterprises, Inc.*........................... 708,581
10,800 Columbia/HCA Healthcare Corp......................... 314,550
11,913 Healthsouth Corp.*................................... 317,928
13,100 Integrated Health Services........................... 491,250
19,500 Nova Care*........................................... 229,125
15,300 Tenet Healthcare Corp.*.............................. 478,125
8,200 Universal Health Services*........................... 478,675
8,900 Wellpoint Health Network*............................ 658,600
-------------
3,676,834
-------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
MINING -- 0.70%
17,000 AK Steel Holding Corp................................ $ 303,875
60,700 Bethlehem Steel Corp.*............................... 754,956
10,200 Owens-Illinois, Inc.*................................ 456,450
------------
1,515,281
------------
OIL SERVICES -- 0.42%
8,800 BJ Services*......................................... 255,750
16,400 Ensco International, Inc............................. 284,950
5,300 Schlumberger Ltd..................................... 362,056
------------
902,756
------------
PROPERTY INSURANCE -- 2.08%
15,000 American International Group......................... 2,190,000
27,211 Travelers Group, Inc................................. 1,649,667
15,400 Travelers Property Casualty.......................... 660,275
------------
4,499,942
------------
PUBLISHING -- 0.19%
8,100 American Greetings Corp. - Class A................... 412,594
------------
RETAIL -- SPECIALTY -- 0.18%
10,600 Best Buy*............................................ 382,925
------------
SECURITIES -- ASSETS -- 2.55%
10,100 Bear Stearns Companies, Inc.......................... 574,438
6,200 Donaldson Lufkin & Jenrette.......................... 315,038
14,800 Equitable Companies, Inc............................. 1,109,075
5,200 Lehman Brothers Holdings, Inc........................ 403,325
14,800 Merrill Lynch........................................ 1,365,299
19,000 Morgan Stanley/Dean Witter Discover.................. 1,736,124
------------
5,503,299
------------
SEMICONDUCTORS -- 0.72%
21,100 Intel Corp........................................... 1,564,038
------------
TELEPHONE -- 0.39%
17,400 Worldcom, Inc........................................ 842,813
------------
THRIFTS -- 0.20%
14,500 Dime Bancorp, Inc.................................... 434,094
------------
TOBACCO -- 0.68%
20,800 Philip Morris, Inc................................... 819,000
17,600 Universal Corp....................................... 657,800
------------
1,476,800
------------
TRUCK FREIGHT -- 0.38%
21,200 Airborne Freight Corp................................ 740,675
1,200 FDX Corp.*........................................... 75,300
------------
815,975
------------
TOTAL -- GOLDMAN SACHS ASSET MANAGEMENT (COST
$58,923,405)........................................ 72,775,389
------------
TOTAL -- COMMON STOCKS
(COST $162,049,912)................................. 212,176,833
------------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
SHORT-TERM INVESTMENTS -- 1.23%
GOLDMAN SACHS ASSET
MANAGEMENT -- 0.00%
944 Bankers Trust Cash Sweep............................... $ 944
-----------
TOTAL -- MONEY MARKET MUTUAL FUNDS (COST $944)......... 944
-----------
GOLDMAN SACHS ASSET
MANAGEMENT -- 0.05%
100,000 U.S. T-Bill, 5.46%, 9/17/98 (b)........................ 98,942
-----------
TOTAL -- U.S. TREASURY OBLIGATIONS (COST $98,836)...... 98,942
-----------
JENNISON ASSOCIATES LLC -- 0.73%
AUTOMOTIVE -- 0.73%
1,586,000 Ford Motor Co., Commercial Paper, 5.90%, 07/01/98...... 1,586,000
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
----------- ----------- --------
<C> <S> <C>
GOLDMAN SACHS ASSET
MANAGEMENT -- 0.45%
$ 969,000 Bankers Trust Co., Repurchase Agreement, dated
6/30/98, due 7/1/98 at 4.75% with a maturity value
of $969,128 (Collateralized by $960,000 U.S.
Treasury Note, 6.25%, 10/31/01, market value
$988,246)......................................... $ 969,000
------------
TOTAL -- SHORT-TERM INVESTMENTS
(COST $2,654,886)................................. 2,654,886
------------
TOTAL INVESTMENTS (COST $164,704,692) (a) --
99.40%........................................... 214,831,719
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.60%.............................. 1,296,929
------------
TOTAL NET ASSETS -- 100.00%........................ $216,128,648
============
</TABLE>
- --------
* Non-income producing securities.
(a) At June 30, 1998, the aggregate cost of investment securities for income
tax purposes was $165,164,013. Cost for federal income tax purposes
differs from value of net unrealized appreciation of securities as
follows:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $53,339,461
Unrealized depreciation........................................... (3,671,755)
-----------
Net unrealized appreciation....................................... $49,667,706
===========
</TABLE>
(b) Security segregated to collateralize futures contracts.
<TABLE>
<CAPTION>
NUMBER OF MARKET UNREALIZED
CONTRACTS VALUE GAIN
--------- ------- ----------
<S> <C> <C> <C>
FUTURES
GOLDMAN SACHS ASSET MANAGEMENT
Long S&P 500 Future, 9/17/98..................... 3 857,250 28,180
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS -- 95.56%
FRONTIER CAPITAL MANAGEMENT
CO. -- 54.42%
ADVERTISING -- 0.61%
28,700 Young & Rubicam, Inc.*.................................. $ 918,400
------------
AEROSPACE -- 0.63%
25,400 Orbital Sciences Corp.*................................. 949,325
------------
AGRICULTURE -- 0.59%
57,900 Northland Cranberries, Inc. - Class A................... 893,831
------------
BUILDING MATERIALS &
COMPONENTS -- 1.06%
36,800 Elcor Corp.............................................. 929,200
46,100 Perini Corp.*........................................... 394,731
5,000 Texas Industries, Inc................................... 265,000
------------
1,588,931
------------
BUSINESS EQUIPMENT &
SERVICES -- 0.58%
10,300 Black Box Corp.*........................................ 341,831
22,100 Virco Manufacturing Co.................................. 529,019
------------
870,850
------------
CHEMICALS -- 0.45%
29,800 Hexcel Corp.*........................................... 674,225
------------
COMMERCIAL SERVICES -- 0.62%
49,500 Central Sprinkler Corp.*................................ 396,000
36,800 Quanta Services, Inc.*.................................. 540,500
------------
936,500
------------
COMPUTER EQUIPMENT -- 3.80%
27,600 Analog Devices, Inc.*................................... 677,925
30,100 Artesyn Technologies, Inc.*............................. 481,600
53,200 Box Hill Systems Corp.*................................. 369,075
33,300 Data General Corp.*..................................... 497,419
42,100 In Focus Systems, Inc.*................................. 297,331
111,900 ISG International Software Group Ltd.*.................. 1,146,974
18,900 Kronos, Inc.*........................................... 685,125
35,200 Sandisk Corp.*.......................................... 486,200
23,168 Seagate Technology, Inc.*............................... 551,688
11,400 Synopsys, Inc.*......................................... 521,550
------------
5,714,887
------------
COMPUTER SOFTWARE -- 6.02%
6,900 3DFX Interactive, Inc................................... 118,163
17,600 Ansoft Corp.*........................................... 204,600
37,300 Ansys, Inc.*............................................ 368,338
32,500 Barra, Inc.*............................................ 796,249
26,200 Evans & Sutherland Computer Corp.*...................... 659,913
20,000 Filenet Corp.*.......................................... 577,500
42,700 Information Resources, Inc.*............................ 789,950
77,100 Learning Company, Inc.*................................. 2,284,087
32,400 Level 8 Systems, Inc.*.................................. 291,600
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMPUTER SOFTWARE (CONTINUED)
18,438 Network Associates, Inc.*............................... $ 882,718
20,600 Project Software Corp.*................................. 413,288
18,000 Read Rite Corp.*........................................ 163,125
43,900 STB Systems, Inc.*...................................... 548,750
20,100 Tecnomatix Technology Ltd.*............................. 402,000
19,100 Xylan Corp.*............................................ 569,419
------------
9,069,700
------------
CONSUMER SERVICES -- 0.06%
3,800 Gibson Greetings, Inc.*................................. 95,000
------------
DRUGS -- 0.28%
23,900 Alkermes, Inc.*......................................... 427,213
------------
ELECTRICAL & ELECTRONICS -- 2.49%
56,100 Cypress Semiconductors Corp.*........................... 466,331
13,100 Harman International Industries, Inc.................... 504,350
37,200 LSI Logic*.............................................. 857,925
17,600 Microchip Technology, Inc.*............................. 459,800
10,100 Rogers Corp.*........................................... 333,300
69,800 Trimble Navigation Ltd.*................................ 1,129,887
------------
3,751,593
------------
ELECTRONIC COMPONENTS & INSTRUMENTS -- 4.46%
18,600 Atmel Corp.*............................................ 253,425
24,000 Exar Corp.*............................................. 504,000
19,600 Fore Systems, Inc.*..................................... 519,400
33,300 Harmon Industries, Inc.................................. 790,874
13,100 Lam Research Corp.*..................................... 250,538
12,300 Lattice Semiconductor Corp.*............................ 349,397
120,600 Mentor Graphics Corp.*.................................. 1,273,837
31,400 Protein Design Labs, Inc.*.............................. 756,543
14,600 SBS Technologies, Inc.*................................. 439,825
20,700 Speedfam International, Inc.*........................... 381,656
35,000 Telcom Semiconductor, Inc.*............................. 179,375
11,000 Telxon Corp............................................. 356,125
40,400 VLSI Technology, Inc.*.................................. 677,963
------------
6,732,958
------------
ELECTRONIC EQUIPMENT -- 0.64%
21,600 Network Equipment Technologies, Inc.*................... 338,850
25,800 Newbridge Networks Corp.*............................... 617,588
------------
956,438
------------
ENERGY -- 0.32%
40,600 American Superconductor Corp.*.......................... 487,200
------------
ENGINEERING & CONSTRUCTION -- 1.16%
107,300 Insituform Technologies - Class A*...................... 1,485,434
6,700 Stone & Webster, Inc.................................... 265,488
------------
1,750,922
------------
ENTERTAINMENT -- 0.31%
108,800 Network Event Theater, Inc.*............................ 462,400
------------
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT
CO. (CONTINUED)
FINANCIAL SERVICES -- 0.13%
10,200 Advanta Corp. - Class B................................. $ 202,725
------------
FOREST PRODUCTS & PAPERS -- 0.58%
48,000 Louisiana-Pacific Corp.................................. 876,000
------------
HEALTH CARE -- 0.64%
37,100 Apple Orthodontix, Inc.*................................ 222,600
17,700 Lincare Holdings, Inc.*................................. 744,506
------------
967,106
------------
HOSPITAL MANAGEMENT &
SERVICES -- 0.29%
43,800 Visible Genetics, Inc.*................................. 432,525
------------
HOTEL & MOTEL -- 0.09%
10,500 Cavanaughs Hospitality Corp.*........................... 137,156
------------
INSURANCE -- 0.80%
14,500 Conseco, Inc............................................ 677,875
17,000 Coventry Health Care, Inc.*............................. 252,875
12,400 HCC Insurance Holdings, Inc............................. 272,800
------------
1,203,550
------------
LEISURE & TOURISM -- 1.27%
60,100 American Coin Merchandising*............................ 1,186,975
29,700 International Game Technology........................... 720,225
------------
1,907,200
------------
MACHINERY & ENGINEERING -- 0.31%
38,600 Brown & Sharpe Manufacturing Co.*....................... 463,200
------------
MANUFACTURING -- 0.82%
121,300 Compass Plastics & Technologies, Inc.*.................. 272,925
5,100 GTECH Holdings Corp.*................................... 171,806
17,300 Lesco, Inc.............................................. 324,375
20,300 Wesley Jessen Visioncare, Inc.*......................... 469,438
------------
1,238,544
------------
MEDICAL -- BIOTECHNOLOGY -- 1.23%
128,000 Celgene Corp.*.......................................... 1,360,000
31,100 Laser Vision Centers, Inc.*............................. 377,088
40,300 Neoprobe Corp.*......................................... 110,825
------------
1,847,913
------------
MEDICAL -- HOSPITAL MANAGEMENT & SERVICES -- 0.22%
11,500 United Wisconsin Services, Inc.......................... 326,313
------------
MEDICAL SUPPLIES -- 1.42%
27,900 Merit Medical Systems, Inc.*............................ 247,613
31,700 VISX, Inc.*............................................. 1,886,150
------------
2,133,763
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
OIL & GAS -- 1.45%
20,700 Carbo Ceramics, Inc..................................... $ 706,387
5,800 COHO Energy, Inc.*...................................... 39,150
19,564 Louis Dreyfus Natural Gas Corp.*........................ 370,493
22,200 Noble Drilling Corp.*................................... 534,188
8,000 Vastar Resources........................................ 349,500
17,200 Wiser Oil Co............................................ 190,275
------------
2,189,993
------------
PACKAGING/CONTAINERS -- 1.10%
60,800 Gaylord Container Corp. - Class A*...................... 467,400
35,200 Stone Container Corp.................................... 550,000
42,500 U.S. Can Corp.*......................................... 624,219
------------
1,641,619
------------
PAPER PRODUCTS -- 0.33%
15,500 Williamette Industries, Inc............................. 496,000
------------
PHARMACEUTICALS -- 0.63%
82,300 Cellegy Pharmaceuticals, Inc.*.......................... 457,794
71,200 DUSA Pharmaceuticals, Inc.*............................. 485,050
------------
942,844
------------
PUBLISHING & PRINTING -- 1.28%
46,100 Mail-Well, Inc.*........................................ 999,793
5,700 Scholastic Corp.*....................................... 227,288
30,600 Scientific Games Holdings Corp.*........................ 703,800
------------
1,930,881
------------
REAL ESTATE -- 1.75%
17,200 Boston Properties, Inc.................................. 593,400
51,900 CB Richard Ellis Services*.............................. 1,735,406
6,900 Lasalle Partners, Inc.*................................. 307,050
------------
2,635,856
------------
RETAIL -- 0.85%
19,900 Claire's Stores, Inc.................................... 407,950
37,300 Heilig Meyers Co........................................ 459,256
61,300 National Vision Associates Ltd.*........................ 406,113
------------
1,273,319
------------
RETIREMENT & AGED CARE -- 0.52%
22,600 Sunrise Assisted Living, Inc.*.......................... 776,875
------------
SCHOOLS -- 0.45%
27,000 Computer Learning Centers, Inc.*........................ 671,625
------------
STEEL -- 2.16%
77,800 Birmingham Steel Corp................................... 962,775
6,500 Carpenter Technology Corp............................... 326,625
25,300 J & L Specialty Steel, Inc.............................. 150,219
31,200 Oregon Steel Mills, Inc................................. 581,100
23,900 Quanex Corp............................................. 724,469
13,000 Reliance Steel & Aluminum Co............................ 502,125
------------
3,247,313
------------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT
CO. (CONTINUED)
TECHNOLOGY -- 0.95%
19,700 CommScope, Inc.*........................................ $ 318,894
53,900 Faro Technologies, Inc.*................................ 569,319
75,000 System Software Assoc., Inc............................. 534,375
------------
1,422,588
------------
TELECOM SERVICES -- 0.22%
17,300 Century Communications - Class A*....................... 324,375
------------
TELECOMMUNICATIONS -- 2.90%
31,000 360 Communications Co.*................................. 991,999
40,500 Ace Comm Corp.*......................................... 227,813
126,730 Arch Communications Group*.............................. 498,999
33,600 Digital Microwave*...................................... 243,600
44,000 InterVoice, Inc.*....................................... 781,000
18,400 Omnipoint Corp.*........................................ 422,050
30,500 Transaction Network Services*........................... 642,406
28,200 Western Wireless Corp. - Class A*....................... 562,238
------------
4,370,105
------------
TELECOMMUNICATIONS
EQUIPMENT -- 2.44%
22,460 ADC Telecommunications, Inc.*........................... 820,492
30,500 Antec Corp.*............................................ 707,219
14,700 Level One Communications, Inc.*......................... 345,450
38,500 Paging Network, Inc.*................................... 539,000
30,900 Periphonics Corp.*...................................... 388,181
33,700 Tollgrade Communications, Inc.*......................... 867,775
------------
3,668,117
------------
TEXTILES & APPAREL -- 1.25%
34,500 Angelica Corp........................................... 724,500
91,900 Hartmarx Corp.*......................................... 694,994
13,600 Unifi, Inc.............................................. 465,800
------------
1,885,294
------------
TOYS -- 0.51%
76,300 Galoob (Lewis) Toys, Inc.*.............................. 763,000
------------
TRANSPORTATION -- 1.72%
46,700 ABC Rail Products Corp.*................................ 805,576
23,700 America West Airlines Holdings Corp. - Class B*......... 676,931
34,600 Celadon Group, Inc.*.................................... 657,400
13,700 U.S. Freightways Corp................................... 449,959
------------
2,589,866
------------
UTILITIES -- ELECTRICAL -- 0.40%
19,900 Calenergy Company, Inc.*................................ 598,244
------------
WASTE DISPOSAL -- 0.20%
12,700 Republic Services, Inc.*................................ 304,800
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
WHOLESALE DISTRIBUTION --PHARMACEUTICALS -- 0.02%
500 Amerisource Health Corp. - Class A*.................... $ 32,844
------------
WHOLESALE SPECIAL LINE -- 0.57%
32,100 Cameron Ashley Building Products*...................... 541,688
50,500 Sodak Gaming, Inc.*.................................... 315,625
------------
857,313
------------
WIRE & CABLE -- 0.84%
30,450 Cable Design Technologies Corp.*....................... 628,031
27,200 Essex International, Inc.*............................. 642,600
------------
1,270,631
------------
TOTAL -- FRONTIER CAPITAL MANAGEMENT CO. (COST
$74,128,751).......................................... 81,909,870
------------
GEEWAX, TERKER & CO. -- 41.14%
ADVERTISING -- 0.37%
11,200 Advo, Inc.*............................................ 315,700
8,500 True North Communications, Inc......................... 248,625
------------
564,325
------------
AIRLINES -- 0.69%
12,700 ASA Holdings, Inc...................................... 630,237
13,100 Comair Holdings, Inc................................... 404,462
------------
1,034,699
------------
APPLIANCES & HOUSEHOLD
PRODUCTS -- 0.47%
14,600 Interface, Inc......................................... 294,738
11,400 Windmere-Durable Holdings, Inc.*....................... 408,262
------------
703,000
------------
AUTO PARTS -- 0.09%
4,600 Superior Industries, Inc............................... 129,663
------------
AUTO RELATED -- 0.64%
5,600 Arvin Industries, Inc.................................. 203,350
2,900 Excel Industries, Inc.................................. 41,506
3,800 O'Reilly Automotive, Inc.*............................. 136,800
7,700 Titan International, Inc............................... 130,900
6,700 Tower Automotive, Inc.*................................ 287,263
6,500 Wabash National Corp................................... 167,375
------------
967,194
------------
BANKING -- 5.35%
12,625 Associated Banc-Corp................................... 475,016
3,500 Astoria Financial Corp................................. 187,250
5,200 Centura Banks, Inc..................................... 325,000
14,900 Colonial Bancgroup, Inc................................ 480,524
7,200 Commerce Bancorp....................................... 421,200
7,100 Commonwealth Bancorp, Inc.............................. 162,856
17,000 Community First Bankshares, Inc........................ 445,188
4,800 Cullen/Frost Bankers, Inc.............................. 260,400
9,500 First Merit Corp....................................... 276,688
6,600 Hubco, Inc............................................. 236,363
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
GEEWAX, TERKER & CO. (CONTINUED)
BANKING (CONTINUED)
17,100 Imperial Bancorp*....................................... $ 512,999
28,200 North Fork Bancorp, Inc................................. 689,137
6,500 Peoples Bank Of Bridgeport.............................. 225,063
24,000 Peoples Heritage Financial Group, Inc................... 567,000
10,500 Provident Bankshares Corp............................... 309,750
6,800 Roslyn Bancorp, Inc..................................... 151,725
8,000 Silicon Valley Bancshares*.............................. 284,750
3,100 Simmons First National Corp............................. 147,250
9,000 Trans Financial, Inc.................................... 516,374
5,500 United Bankshares, Inc.................................. 187,688
3,900 US Bancorp, Inc......................................... 301,519
11,000 UST Corp................................................ 291,500
4,000 Webster Financial Corp.................................. 133,000
14,800 Westamerica Bancorp..................................... 475,449
------------
8,063,689
------------
BEVERAGES -- 0.09%
2,700 Canandaigua Wine Co. - Class A*......................... 132,806
------------
BROADCASTING & PUBLISHING -- 0.17%
5,000 American Tower Corp.*................................... 124,688
8,000 United International Holdings -
Class A*............................................... 128,000
------------
252,688
------------
BUILDING MATERIALS &
COMPONENTS -- 1.30%
4,700 Carlisle Co............................................. 202,394
3,800 Florida Rock Industries, Inc............................ 110,913
3,100 Holophane Corp.......................................... 79,050
10,600 Martin Marietta Materials, Inc.......................... 476,999
4,800 NCI Building Systems, Inc.*............................. 277,200
4,300 Southdown, Inc.......................................... 306,912
6,300 TJ International, Inc................................... 189,788
7,900 Valspar Corp............................................ 313,037
------------
1,956,293
------------
BUSINESS EQUIPMENT &
SERVICES -- 0.10%
4,700 Inacom Corp............................................. 149,225
------------
CHEMICALS -- 0.36%
2,700 Fuller (H. B.) Co....................................... 149,681
4,100 Mineral Technologies, Inc............................... 208,588
4,400 OM Group, Inc........................................... 181,500
------------
539,769
------------
COMMERCIAL SERVICES -- 0.22%
3,700 Aviall, Inc............................................. 50,644
10,000 Ogden Corp.............................................. 276,875
------------
327,519
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMPUTER EQUIPMENT -- 0.08%
2,500 Cable Design Technologies Corp.......................... $ 51,563
5,300 Sequent Computer*....................................... 63,931
------------
115,494
------------
COMPUTER SOFTWARE -- 1.17%
10,800 Policy Management Systems Corp.*........................ 423,900
26,500 Sungard Data Systems, Inc.*............................. 1,016,938
12,200 Symantec Corp.*......................................... 318,725
------------
1,759,563
------------
CONSTRUCTION -- 0.26%
10,200 Centex Construction Products, Inc....................... 392,700
------------
CONSUMER CYCLICAL -- 0.11%
7,600 Wolverine World Wide, Inc............................... 164,825
------------
CONSUMER NON-DURABLES -- 0.38%
16,100 Department 56, Inc.*.................................... 571,550
------------
CONSUMER SERVICES -- 0.65%
4,300 Bristol Hotel Co.*...................................... 105,350
3,500 Cort Business Services Corp.*........................... 110,250
15,700 Marcus Corp............................................. 280,638
6,100 Promus Hotel Corp....................................... 234,850
2,300 Rental Services Corp.................................... 77,338
9,400 Rio Hotel & Casino*..................................... 177,425
------------
985,851
------------
CONSUMER STAPLES -- 0.88%
6,800 Earthgrains Company..................................... 379,949
5,700 Smithfield Foods, Inc.*................................. 173,850
13,800 Smuckers (J.M.) Co. - Class A........................... 342,413
19,000 Universal Foods Corp.................................... 421,562
------------
1,317,774
------------
DEFENSE -- 0.51%
7,400 AAR Corp................................................ 218,763
10,000 Coltec Industries*...................................... 198,750
14,100 Gencorp, Inc............................................ 356,025
------------
773,538
------------
ELECTRIC UTILITY -- 1.38%
4,700 Black Hills Corp........................................ 108,100
4,800 Cleco Corp.............................................. 142,800
4,600 Commonwealth Energy Systems Co.......................... 173,650
8,900 MDU Resources Group, Inc................................ 317,619
14,500 Minnesota Power, Inc.................................... 576,374
13,000 Nevada Power Co......................................... 334,750
5,300 Northwestern Corp....................................... 132,500
3,100 Utilicorp United, Inc................................... 116,831
8,000 Washington Water Power.................................. 179,500
------------
2,082,124
------------
ELECTRICAL & ELECTRONICS -- 0.49%
10,600 Ametek, Inc............................................. 310,712
4,800 Baldor Electric Co...................................... 117,300
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
GEEWAX, TERKER & CO. (CONTINUED)
ELECTRICAL & ELECTRONICS (CONTINUED)
900 Belden, Inc.............................................. $ 27,563
4,300 CSG Systems International*............................... 201,563
5,300 Thermo Optek Corp.*...................................... 78,506
------------
735,644
------------
ELECTRONIC COMPONENTS &
INSTRUMENTS -- 1.21%
4,300 Anixter International, Inc.*............................. 81,969
5,400 Avid Technology, Inc.*................................... 180,900
13,200 Oak Industries, Inc.*.................................... 466,950
6,300 Progress Software Corp.*................................. 258,300
4,200 Tektronix, Inc........................................... 148,575
5,100 Teleflex, Inc............................................ 193,800
12,300 Thermoquest Corp.*....................................... 183,731
8,200 Wolverine Tube, Inc.*.................................... 311,600
------------
1,825,825
------------
ENERGY -- 0.08%
6,400 Offshore Logistics*...................................... 113,600
------------
ENGINEERING & CONSTRUCTION -- 0.34%
6,800 Avondale Industries, Inc.*............................... 187,638
9,900 Jacobs Engineering Group, Inc.*.......................... 318,038
------------
505,676
------------
ENTERTAINMENT -- 0.17%
8,800 Grand Casinos, Inc.*..................................... 147,400
4,400 King World Productions, Inc.*............................ 112,200
------------
259,600
------------
ENVIRONMENTAL CONTROL -- 0.18%
11,700 Donaldson Co., Inc....................................... 275,681
------------
ENVIRONMENTAL SERVICES -- 0.11%
9,200 Imco Recycling, Inc...................................... 170,200
------------
FINANCIAL SERVICES -- 0.68%
6,300 CMAC Investment Corp..................................... 387,450
6,700 Financial Securities Assurance
Holdings Ltd............................................ 393,625
2,000 Legg Mason, Inc.......................................... 115,125
5,700 Selective Insurance Group, Inc........................... 127,716
------------
1,023,916
------------
FOREST PRODUCTS & PAPERS -- 0.16%
4,100 Caraustar Industries, Inc................................ 118,388
1,700 Deltic Timber Corp....................................... 42,606
4,700 P.H. Glatfelter & Co..................................... 74,319
------------
235,313
------------
GAS DISTRIBUTION -- 0.18%
11,400 Wicor, Inc............................................... 263,625
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
GAS UTILITY -- 0.49%
3,500 Connecticut Energy Corp.................................. $ 97,563
2,600 Public Service Co........................................ 56,550
8,000 UGI Corp................................................. 199,000
14,200 Washington Gas Light Co.................................. 379,850
------------
732,963
------------
GROCERY -- 0.70%
24,700 Fred Meyer, Inc.*........................................ 1,049,749
------------
HEALTHCARE -- 0.65%
7,100 Integrated Health Services, Inc.......................... 266,250
9,300 Sun Healthcare Group, Inc.*.............................. 136,594
13,900 Trigon Healthcare, Inc................................... 503,006
2,300 United Wisconsin Services, Inc........................... 65,263
------------
971,113
------------
HOMEBUILDERS -- 0.74%
12,000 Centex Corp.............................................. 453,000
8,100 Kaufman And Broad Home Corp.............................. 257,175
4,000 Pulte Corp............................................... 119,500
10,100 Toll Brothers, Inc.*..................................... 289,744
------------
1,119,419
------------
HOSPITAL MANAGEMENT &
SERVICES -- 0.36%
6,500 Total Renal Care Holdings, Inc........................... 224,250
5,500 Universal Health Services, Inc. -
Class B*................................................ 321,063
------------
545,313
------------
HOTEL & MOTEL -- 0.15%
8,300 Capstar Hotel Co.*....................................... 232,400
------------
HUMAN RESOURCES -- 0.45%
12,100 Interim Services, Inc.................................... 388,713
14,300 Personnel Group Of America, Inc.*........................ 286,000
------------
674,713
------------
INDUSTRIAL -- 0.19%
5,800 Crane Co................................................. 281,663
------------
INSURANCE -- 3.59%
12,900 Alfa Corp................................................ 267,675
6,800 Capital Re Corp.......................................... 487,049
14,600 CNA Surety Corp.......................................... 215,350
9,078 Delphi Financial Group - Class A*........................ 511,204
13,400 Enhance Financial Services Group, Inc.................... 452,250
17,200 Fidelity National Financial, Inc......................... 684,774
9,800 Fremont General Corp..................................... 531,037
11,200 Horace Mann Educators Corp............................... 386,400
6,600 Liberty Financial Co..................................... 227,700
10,900 Life USA Holding, Inc.*.................................. 141,019
5,000 Mercury General Corp..................................... 321,563
1,700 National Re Corp......................................... 90,738
8,700 Orion Capital Corp....................................... 486,112
7,500 Reinsurance Group of America............................. 443,438
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
GEEWAX, TERKER & CO. (CONTINUED)
INSURANCE (CONTINUED)
4,200 W.R. Berkley Corp........................................ $ 168,263
------------
5,414,572
------------
LEISURE & RECREATION -- 0.11%
4,300 Fleetwood Enterprises, Inc............................... 172,000
------------
MACHINERY & ENGINEERING -- 0.09%
5,728 Albany International Corp. - Class A..................... 137,126
------------
MANUFACTURING -- 1.12%
5,200 Aptargroup............................................... 323,375
10,500 Cincinnati Milacron, Inc................................. 255,281
5,400 Ethan Allen Interiors, Inc............................... 269,663
6,300 Furniture Brands International, Inc.*.................... 176,794
8,400 Intermet Corp............................................ 152,250
5,700 Trinity Industries, Inc.................................. 236,550
10,700 U.S. Industries, Inc..................................... 264,825
------------
1,678,738
------------
MEDICAL SUPPLIES -- 0.05%
3,100 Marquette Medical Systems, Inc.*......................... 79,534
------------
MINING -- 0.05%
3,700 Brush Wellman, Inc....................................... 76,081
------------
NATURAL GAS UTILITY -- 0.09%
4,600 Colonial Gas Co.......................................... 131,675
------------
OIL & GAS -- 1.57%
2,200 Atwood Oceanics, Inc.*................................... 87,588
6,700 BJ Services Co.*......................................... 194,719
3,800 Devon Energy Corp........................................ 132,763
5,200 Equitable Resources, Inc................................. 158,600
11,900 HS Resources, Inc.*...................................... 173,294
13,500 Lomak Petroleum, Inc..................................... 140,906
4,400 Louis Dreyfus Natural Gas Corp........................... 83,325
10,300 Nuevo Energy Co.*........................................ 330,887
3,800 Oneok, Inc............................................... 151,525
19,600 Parker Drilling Co.*..................................... 138,425
3,200 Seacor Holdings, Inc.*................................... 196,199
24,200 Tesoro Petroleum Corp.*.................................. 384,174
10,200 Vintage Petroleum, Inc................................... 192,525
------------
2,364,930
------------
PACKAGING/CONTAINERS -- 0.08%
5,850 Clarcor, Inc............................................. 122,850
------------
PAPER PRODUCTS -- 0.13%
8,300 Wausau-Mosinee Paper Corp................................ 189,863
------------
PHARMACEUTICALS -- 0.54%
12,700 Alpharma, Inc............................................ 279,400
11,700 ICN Pharmaceuticals, Inc................................. 534,543
------------
813,943
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
PIPELINES -- 0.05%
2,700 Shaw Group, Inc.*........................................ $ 70,200
------------
PUBLISHING & PRINTING -- 1.34%
7,700 Banta Corp............................................... 237,738
3,900 Central Newspapers, Inc. - Class A....................... 272,025
3,400 Houghton Mifflin Co...................................... 108,800
2,800 Jostens, Inc............................................. 67,550
10,900 Media General, Inc. - Class A............................ 531,374
4,100 The McClatchy Co......................................... 141,963
7,100 Valassis Communications, Inc. *.......................... 273,794
10,900 World Color Press, Inc.*................................. 381,500
------------
2,014,744
------------
RAW MATERIALS -- 0.08%
2,300 Cleveland Cliffs, Inc.................................... 123,338
------------
REAL ESTATE -- 2.29%
10,000 American General Hospitality Corp........................ 212,500
7,452 Avalon Bay Communities, Inc.............................. 281,313
10,400 Bradley Real Estate, Inc................................. 219,700
5,500 Developers Diversified Realty Corp....................... 215,531
5,100 Kimco Realty Corp........................................ 209,100
11,000 Manufactured Home Communities, Inc....................... 265,375
9,000 Marry Land & Investment Co............................... 189,563
3,600 Mid-America Apartment Communities, Inc................... 94,725
8,100 National Golf Properties, Inc............................ 243,000
17,400 Nationwide Health Properties, Inc........................ 415,424
7,100 Omega Healthcare Investors, Inc.......................... 249,388
10,000 RFS Hotel Investors, Inc................................. 190,000
3,700 Storage USA, Inc......................................... 129,500
12,000 Walden Residential Properties, Inc....................... 293,999
7,900 Weeks Corp............................................... 249,838
------------
3,458,956
------------
RESTAURANTS -- 1.25%
11,500 Bob Evans Farms, Inc..................................... 243,656
15,400 Brinker International, Inc.*............................. 296,450
6,200 Buffets, Inc.*........................................... 97,263
7,600 Cracker Barrel Old Country Store, Inc.................... 241,300
900 IHOP Corp.*.............................................. 37,238
10,900 Landry's Seafood Restaurants............................. 197,222
5,800 Ruby Tuesday, Inc........................................ 89,900
10,700 Showbiz Pizza Time, Inc.*................................ 431,343
11,250 Sonic, Inc.*............................................. 251,719
------------
1,886,091
------------
RETAIL -- 2.37%
11,500 BJ's Wholesale Club, Inc................................. 467,188
1,900 Borders Group, Inc.*..................................... 70,300
21,800 Family Dollar Stores, Inc................................ 403,300
19,300 Cash America International, Inc.......................... 294,325
13,900 Dress Barn*.............................................. 345,763
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
GEEWAX, TERKER & CO. (CONTINUED)
RETAIL (CONTINUED)
4,200 Fabric Centers Of America, Inc.*......................... $ 114,975
18,200 Fingerhut Companies, Inc................................. 600,600
8,200 Pier One Imports, Inc.................................... 195,775
17,700 Proffitts, Inc.*......................................... 714,637
2,200 Ross Stores, Inc......................................... 94,600
8,000 Shopko Stores, Inc....................................... 272,000
------------
3,573,463
------------
SAVINGS & LOAN -- 0.39%
35,800 Sovereign Bank, Inc...................................... 585,106
------------
STEEL -- 0.30%
5,400 Carpenter Technology Corp................................ 271,350
7,100 Castle (A.M.) & Co....................................... 156,200
1,200 Gibraltar Steel Corp..................................... 24,600
------------
452,150
------------
TELECOMMUNICATIONS -- 0.78%
15,600 Comsat Corp.............................................. 441,675
23,100 Frontier Corp............................................ 727,650
------------
1,169,325
------------
TEXTILES & APPAREL -- 0.35%
4,000 Authentic Fitness Corp................................... 63,250
7,200 Kellwood Co.............................................. 257,400
6,600 Mohawk Industries, Inc.*................................. 209,138
------------
529,788
------------
TOBACCO -- 0.13%
5,100 Universal Corp........................................... 190,613
------------
TRANSPORTATION -- SHIPPING -- 0.95%
3,300 Air Express International Corp........................... 88,275
6,900 Airborne Freight Corp.................................... 241,069
2,000 CNF Transportation, Inc.................................. 85,000
3,200 Expeditors International of Washington, Inc.............. 140,800
4,400 Landstar System, Inc.*................................... 153,725
2,400 MS Carriers, Inc.*....................................... 65,100
15,700 Rollins Truck Leasing, Inc............................... 197,231
5,900 US Freightways Corp...................................... 193,778
3,750 Werner Enterprises, Inc.................................. 71,484
3,200 Xtra Corp................................................ 193,600
------------
1,430,062
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
WASTE DISPOSAL -- 0.12%
5,800 Superior Services, Inc.*............................. $ 174,363
------------
WATER UTILITY -- 0.33%
6,700 California Water Service............................. 169,175
4,200 E'Town Corp.......................................... 157,500
7,600 Philadelphia Suburban Corp........................... 166,250
------------
492,925
------------
WHOLESALE DISTRIBUTION --PHARMACEUTICALS -- 0.39%
3,800 Amerisource Health Corp. - Class A................... 249,613
10,400 Bindley Western Industries........................... 343,200
------------
592,813
------------
TOTAL -- GEEWAX, TERKER & CO. (COST $62,404,673)..... 61,925,951
------------
TOTAL -- COMMON STOCKS (COST $136,533,424)........... 143,835,821
------------
PREFERRED STOCKS -- 0.07%
GEEWAX, TERKER & CO. -- 0.07%
ELECTRIC UTILITY -- 0.07%
3,300 WPS Resources........................................ 108,281
------------
TOTAL -- PREFERRED STOCKS (COST $105,666)............ 108,281
------------
DEPOSITARY RECEIPTS -- 2.24%
GEEWAX, TERKER & CO. -- 2.24%
48,500 S&P 400 Mid-Cap Depositary Receipt................... 3,376,812
------------
TOTAL -- DEPOSITARY RECEIPTS (COST $3,315,393)....... 3,376,812
------------
SHORT-TERM INVESTMENTS -- 3.40%
FRONTIER CAPITAL MANAGEMENT
CO. -- 3.03%
1,758 Bankers Trust Cash Sweep............................. 1,758
4,564,855 Bankers Trust Co., Repurchase Agreement, dated
6/30/98, due 7/1/98 at 5.125% with a maturity value
of $4,565,505 (Collateralized by $4,524,000 U.S.
Treasury Note, 6.25%, 10/31/01; market value
$4,657,108)......................................... 4,564,855
------------
TOTAL -- FRONTIER CAPITAL MANAGEMENT CO.
(COST $4,566,613)................................... 4,566,613
------------
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
SHORT-TERM INVESTMENTS (CONTINUED)
GEEWAX, TERKER & CO. -- 0.37%
$ 551,111 Bankers Trust Co., Repurchase Agreement, dated
6/30/98, due 7/1/98 at 4.50% with a maturity value
of $551,180 (Collateralized by $546,000 U.S.
Treasury Note, 6.25%, 10/31/01; market value
$562,065).......................................... $ 551,111
------------
TOTAL -- GEEWAX, TERKER & CO. (COST $551,111)....... 551,111
------------
TOTAL -- SHORT-TERM INVESTMENTS (COST $5,117,724)... 5,117,724
------------
TOTAL INVESTMENTS (COST $145,072,208) (a) --
101.27%........................................... 152,438,638
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (1.27)%.................................. (1,911,928)
------------
TOTAL NET ASSETS -- 100.00%......................... $150,526,710
============
</TABLE>
- --------
* Non-income producing securities.
(a) At June 30, 1998, the aggregate cost of investment securities for income
tax purposes was $145,025,738. Cost for federal income tax purposes differs
from value of net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $ 18,578,617
Unrealized depreciation......................................... (11,165,717)
------------
Net unrealized appreciation..................................... $ 7,412,900
============
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON/PREFERRED STOCKS, RIGHTS & WARRANTS -- 96.63%
AUSTRALIA -- 4.90%
51,700 Amcor Ltd. (Forest Products)......................... $ 225,894
162,200 Boral Ltd. (Building Materials)...................... 303,730
26,800 Brambles Industries Ltd. (Services).................. 524,870
155,500 Broken Hill Proprietary Co. Ltd. (Metals -
Diversified)....................................... 1,311,770
29,700 Coca Cola Amatil Ltd. (Beverages).................... 192,414
93,700 CSR Ltd. (Industrial)................................ 269,849
307,200 David Jones Ltd. (Retail Store)...................... 351,227
23,791 Lend Lease Corp. Ltd. (Real Estate).................. 480,054
78,500 Mayne Nickless Ltd (Transportation).................. 414,792
108,000 National Australia Bank Ltd. (Financial)............. 1,421,668
192,978 News Corp Ltd. (Publishing & Printing)............... 1,571,875
67,966 News Corp. Ltd. Pfd. (Publishing & Printing)......... 480,521
29,900 Orica Ltd. (Manufacturing - Diversified)............ 176,469
157,000 Pacific Dunlop Ltd. (Holding Company)................ 253,241
150,037 Qantas Airways Ltd. (Transportation)................. 225,320
34,650 Rio Tinto Ltd. (Mining).............................. 411,149
71,200 Santos Ltd. (Oil & Gas).............................. 220,011
302,400 Telstra Corp. (Telecommunications)................... 773,707
178,300 Westpac Banking Corp. (Financial).................... 1,085,381
124,300 WMC Ltd. (Metals - Diversified)...................... 373,338
58,300 Woolworths Ltd. (Food - Retail)...................... 189,157
------------
11,256,437
------------
BELGIUM -- 4.32%
5,382 Acec-Union Miniere SA (Mining)....................... 332,579
11,080 Delhaize Freres NPV (Retail -Grocery)................ 773,992
6,055 Electrabel NPV (Utilities)........................... 1,716,288
224 Fortis AG - Strip VVPR (Insurance)*.................. 12
8,400 Fortis AG NPV (Insurance)............................ 2,144,010
550 Generale De Banque-Tractabel Warrants expiring
11/30/99 (Financial Services)*...................... 192
3,165 Group Bruxelles Lambert NPV (Financial Services)..... 638,612
250 KBC Bancassurance Holding - Strip (Financial
Services)*.......................................... 20
14,750 Kredietbank NPV (Financial Services)................. 1,319,653
3,080 Petrofina SA NPV (Oil & Gas)......................... 1,264,025
9,050 Solvay SA (Chemicals)................................ 717,289
7,050 Tractebel NPV (Multi-Industry)....................... 1,032,308
------------
9,938,980
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
CANADA -- 2.87%
15,100 Agrium, Inc. (Agriculture - Supplier)................ $ 188,455
11,800 Alcan Aluminium Ltd. (Metals -Diversified)........... 325,036
9,000 Bank of Montreal (Financial)......................... 495,817
7,100 Barrick Gold Corp. (Mining).......................... 135,211
8,200 Canadian National Railway Co. (Transportation)....... 436,129
27,000 Canadian Pacific Ltd.
(Transportation - Rail)............................. 760,252
19,000 Extendicare, Inc., Class - A
(Medical - Nursing Homes)*.......................... 153,778
10,900 Hudson's Bay Co. (Retail -
Department Stores).................................. 249,833
14,000 Imasco Ltd. (Tobacco)................................ 258,519
27,500 Imperial Oil Canada Ltd.
(Oil & Gas)......................................... 480,684
3,500 Magna International, Inc., Class - A
(Auto Related)...................................... 239,713
13,200 Moore Corp. Ltd. (Business Equipment)................ 175,066
3,700 Newbridge Networks Corp. (Telecommunication
Services)*.......................................... 88,455
12,200 Noranda, Inc. (Metals - Diversified)................. 210,760
33,100 Nova Corp. of Alberta (Utilities)*................... 379,334
3,600 Potash Corp. of Saskatchewan (Agriculture)........... 271,292
10,500 Royal Bank Of Canada (Financial)..................... 632,013
5,100 Seagram Co. Ltd. (Wine & Spirits).................... 207,947
19,700 Shaw Communications, Inc., Class - B (Cable TV)...... 383,201
16,100 Transcanada Pipelines Ltd. (Utilities)............... 356,975
8,000 Westcoast Energy, Inc. (Utilities)................... 178,195
------------
6,606,665
------------
DENMARK -- 0.33%
3,400 Danske Bank Group (Financial)........................ 407,378
3,700 Tele Danmark A/S, Class - B (Telecommunication
Services)........................................... 354,658
------------
762,036
------------
FINLAND -- 2.69%
5,400 Cultor Oyj (Food - Diversified)...................... 87,661
108,100 Merita Ltd. (Banking)................................ 713,766
17,900 Mesta Serla, Class - B (Forest Products & Paper)..... 173,042
48,500 Nokia Oyj, Class - A (Telecommunication Equipment)... 3,569,493
20,700 Outokumpu (Metals - Steel)........................... 264,295
7,900 Sampo Insurance Co. (Insurance)...................... 374,647
28,200 UPM-Kymmene (Paper Products)......................... 776,689
13,200 Valmet Oyj (Manufacturing -Diversified).............. 227,765
------------
6,187,358
------------
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON/PREFERRED STOCKS, RIGHTS & WARRANTS
(CONTINUED)
FRANCE -- 8.75%
2,475 Air Liquide (Chemicals - Specialty).................. $ 409,402
4,562 Alcatel Alsthom (Telecommunications)................. 928,941
4,118 AXA UAP Certificate of Guaranteed Value
(Insurance)*........................................ 1,403
9,368 AXA UAP SA (Insurance)............................... 1,053,733
10,100 Banque Nationale de Paris (Financial)................ 825,322
1,110 Carrefour SA (Food - Retail)......................... 702,311
5,106 Cie de St. Gobain (Compagniede)...................... 946,807
6,750 Cie Generale des Eaux (Utilities).................... 1,441,468
4,590 Cie Generale Warrants expiring 5/2/01 (Diversified
Operations)*........................................ 9,035
6,795 Compagnie Financiere de Paribas (Financial).......... 727,225
4,760 Dexia France (Insurance)............................. 640,924
1,900 Eridania Beghin-Say SA (Agricultural)................ 419,575
19,580 France Telecom SA (Telecommunications)............... 1,350,591
2,840 Groupe Danone (Food Products & Services)............. 783,121
4,263 Lafarge SA (Building Materials)...................... 440,728
14,470 Lagardere Group (Diversified)........................ 602,458
7,211 Lyonnaise des Eaux Dumez (Environmental)............. 1,186,844
9,564 Michelin, Class - B (Tire & Rubber).................. 552,128
9,106 Pechiney Cert. D'Invest (Metals)..................... 366,777
4,540 Peugeot SA (Auto Related)............................ 976,279
640 Pinault Printemps Redoute (Merchandising)............ 535,680
16,838 Rhone Poulenc Ord. (Pharmaceuticals)................. 949,773
16,640 Seita (Tobacco)...................................... 754,187
4,334 Societe Generale (Financial)......................... 901,154
7,730 Societe Nationale Elf Aquitane
(Oil & Gas)......................................... 1,086,859
13,800 Thomson CSF (Defense)................................ 525,027
5,997 Total Co., Class - B (Oil & Gas)..................... 779,707
13,300 Unisor Sacilor (Iron & Steel)........................ 205,482
------------
20,102,941
------------
GERMANY -- 10.13%
181 Allianz AG (Multi-Line Insurance)*................... 59,180
7,222 Allianz AG Holdings (Multi-Line Insurance)*.......... 2,381,318
11,020 BASF AG (Chemicals).................................. 522,145
26,340 Bayer AG (Chemicals)................................. 1,358,966
855 Bayerische Motoren Werke AG
(Auto Related)*..................................... 862,818
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
GERMANY (CONTINUED)
10 Bayerische Motoren Werke Rights expiring 7/22/98
(Auto Related)*..................................... $ 287
5,870 Commerzbank AG (Banking)............................. 224,456
18,400 Continental AG (Tire & Rubber)....................... 573,056
10,100 Daimler Benz AG (Auto Related)....................... 990,690
10,100 Daimler Benz Rights expiring 7/1/98 (Auto Related)*.. 11,194
17,233 Deutsche Bank AG (Financial)......................... 1,459,720
73,100 Deutsche Telekom AG (Telecommunications)............. 1,978,906
21,750 Dresdner Bank AG (Banking)........................... 1,172,776
6,500 Hochtief AG (Building Materials)..................... 311,582
8,570 Hoechst AG (Chemicals)............................... 427,906
1,380 Man AG (Machinery & Engineering)..................... 536,858
10,980 Mannesmann AG (Machinery)............................ 1,114,125
14,608 Metro AG (Retail - Department Stores)................ 886,437
14,608 Metro AG Rights expiring 7/22/98 (Retail - Department
Stores)*............................................ 567
3,640 Muenchener Rueckver AG (Insurance)................... 1,805,375
2,071 Preussag AG (Holding Company)........................ 739,110
12,975 RWE AG (Oil & Gas)................................... 769,368
6,608 Schering AG (Pharmaceuticals)........................ 778,898
21,650 Siemens AG (Manufacturing)........................... 1,317,357
2,550 Thyssen AG (Manufacturing -Miscellaneous)............ 645,802
15,282 Veba AG (Utilities).................................. 1,041,666
1,357 Volkswagen AG (Auto Related)*........................ 1,304,735
------------
23,275,298
------------
HONG KONG -- 0.47%
39,000 Cheung Kong Holdings (Real Estate)................... 191,761
21,000 Citic Pacific Ltd. (Diversified)..................... 37,129
22,000 CLP Holdings Ltd. (Electric -Distribution)........... 100,223
16,700 Hang Seng Bank (Banking)............................. 94,398
105,600 Hong Kong & China Gas Company Ltd. (Utilities -
Natural Gas)....................................... 119,927
4,800 Hong Kong & China Gas Warrant expiring 9/30/99
(Utilities -
Natural Gas)........................................ 328
58,000 Hong Kong Telecommunications (Telecom Services)...... 108,909
45,000 Hutchison Whampoa (Diversified Operations)........... 237,524
24,000 Johnson Electric Holdings Ltd. (Electronic
Components)......................................... 88,892
48,000 South China Morning Post
(Publishing - Newspapers)........................... 23,075
19,000 Sun Hung Kai Properties
(Real Estate)....................................... 80,672
------------
1,082,838
------------
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON/PREFERRED STOCKS, RIGHTS & WARRANTS
(CONTINUED)
ITALY -- 3.84%
29,750 Assic Generali (Insurance)........................... $ 967,398
13,000 Banca Commerciale Italiana (Banking)................. 77,744
134,500 Credito Italiano (Financial - Banking).............. 704,091
68,500 Danieli di Risp (Engineering)........................ 317,932
5,900 ENI - ADR (Oil)...................................... 383,500
235,000 Ente Nazionale Idrocarburi (Insurance)............... 1,540,225
223,750 Fiat Spa (Auto Related)*............................. 557,015
28,000 Istituto Bancario San Paolo di Torino (Banking)...... 404,051
33,400 Istituto Mobiliare Italiano Spa (Financial
Services)........................................... 526,132
23,400 Istituto Nazionale D Assicurazi (Insurance).......... 66,481
6,000 Italgas (Utilities).................................. 24,439
444,840 Montedison Spa (Multi - Industries).................. 551,827
152,000 Parmalat Finanziaria Spa Itl1000 (Holding Co.)....... 309,986
43,700 Rinascente (Retail - Department Stores).............. 435,156
111,555 Telecom Italia (Telecommunications).................. 821,208
145,000 Telecom Italia Mobile de Risp (Telecommunications)... 886,723
77,000 Tim Di Risp (Telecommunications)*.................... 259,916
------------
8,833,824
------------
JAPAN -- 15.04%
74,000 Amada (Hand/Machine Tools)........................... 359,896
67,000 Bank Of Tokyo - Mitsubishi
(Financial - Banking)............................... 709,151
60,000 Canon, Inc. (Business Equipment)..................... 1,361,770
25,000 Canon Sales (Business & Public Services)............. 339,722
69,000 Citizen Watch Co. (Jewelry).......................... 569,241
69,000 Dai Nippon Printing (Printing & Publishing).......... 1,101,196
62,000 Daiichi Pharmaceuticals (Pharmaceuticals)............ 817,494
76,000 Daikin Kogyo Co. (Machinery & Engineering)........... 489,545
36,000 Daiwa House Industries (Manufacturing/Housing)....... 317,746
63,000 Denso Corp. (Auto Parts)............................. 1,044,023
29,600 Fanuc Co. (Electronic Components).................... 1,023,705
7,000 Fuji Photo Film Ltd. (Photo Equipment)............... 243,605
45,000 Fujitsu (Computer Equipment)......................... 473,377
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
JAPAN (CONTINUED)
147,000 Hitachi Ltd. (Electrical & Electronics)................ $ 958,534
31,000 Honda Motor Co. (Auto Related)......................... 1,103,394
17,000 Hoya Corp. (Electrical Components)..................... 481,375
53,000 Inax (Building Materials).............................. 182,153
29,000 Ito Yokado Co. (Retail - Grocery)...................... 1,364,435
73,000 Kaneka Corp. (Chemicals)............................... 383,961
85,000 Keio Teito Electric Railway (Transportation)........... 309,280
86,000 Kintetsu-Kinki Nippon Railway (Transportation)......... 402,767
81,000 Kirin Brewery Co. Ltd. (Brewery)....................... 764,536
24,000 Kokuyo (Office/Business)............................... 406,369
90,000 Kuraray Co. Ltd. (Chemicals)........................... 764,536
9,000 Kyocera Corp. (Electronics)............................ 439,657
39,000 Marui (Retail)......................................... 581,670
88,000 Matsushita Electric Co. (Electronic Components)........ 1,413,935
121,000 NGK Insulators (Industrial Components)................. 1,050,544
7,300 Nintendo (Toys)........................................ 675,877
48,000 Nippon Meat Packers (Food Processing).................. 587,593
59,000 Nippon Steel Corp. (Steel)............................. 103,725
63,000 Okumura (Construction)................................. 221,061
23,000 Omron Corp. (Electronic Components).................... 351,322
142,000 Osaka Gas Corp. (Utilities)............................ 364,234
54,000 Sankyo Pharmaceutical (Pharmaceuticals)................ 1,229,483
17,000 Secom Co. Ltd. (Business & Public Services)............ 981,123
9,000 Sega Enterprise (Electronic Components)................ 155,307
49,000 Seino Transport (Trucking & Leasing)................... 271,850
69,000 Sekisui House (Manufacturing/Housing).................. 534,441
6,000 Shin-Etsu Chemical Co. Ltd. (Chemicals)................ 103,754
17,200 Sony Corp. (Electrical & Electronics).................. 1,480,942
83,000 Sumitomo Chemical Co. (Chemicals)...................... 255,955
61,000 Sumitomo Electric (Metal Fabricate/Hardware)........... 616,637
46,000 Takeda Chemical Industries (Pharmaceuticals)........... 1,222,999
13,000 TDK Corp. (Electrical & Electronics)................... 960,084
68,000 Tokio Marine & Fire (Insurance)........................ 698,667
18,200 Tokyo Electric Power (Utilities)....................... 356,683
54,000 Tonen Corp. (Oil & Gas)................................ 279,746
190,000 Toray Industries (Chemicals)........................... 985,662
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON/PREFERRED STOCKS, RIGHTS & WARRANTS
(CONTINUED)
JAPAN (CONTINUED)
175,000 Toshiba Corp. (Electrical & Electronics)............. $ 714,929
41,000 Toyo Suisan Kaisha (Food Processing)................. 249,917
52,000 Toyota Motor Corp. (Auto Related).................... 1,345,054
11,000 Yamato Transport Co. Ltd.
(Transport - Services).............................. 123,244
27,000 Yamazaki Baking Co. Ltd. (Food Processing)........... 239,282
------------
34,567,188
------------
MALAYSIA -- 0.37%
35,000 Berjaya Sports Toto Berhad (Leisure & Recreation).... 51,930
63,000 Kuala Lumpur (Miscellaneous -Materials).............. 101,834
46,000 Malayan Banking (Financial).......................... 46,388
25,000 Malaysia International Shipping (Transportation)..... 36,490
14,000 Nestle Malaysia (Food Processing).................... 63,498
39,000 Petronas Gas Berhad (Utilities -Natural Gas)......... 72,449
38,200 Public Bank Berhad (Financial)....................... 11,520
55,000 Resorts World Berhad (Entertainment)................. 60,507
18,000 Rothmans Pall Mall (Tobacco)......................... 124,849
14,000 Sime Darby Berhad (Holding Company).................. 9,660
24,000 Tanjong PLC (Leisure & Recreation)................... 33,293
55,500 Telekom Malaysia (Telecommunications)................ 93,727
60,000 Tenega Nasional (Utilities).......................... 72,376
25,000 UMW Holdings Berhad (Machinery & Equipment).......... 11,218
64,000 YTL Corp. Berhad (Telecommunications)................ 48,174
34,700 YTL Power International (Telecommunications)*........ 18,920
------------
856,833
------------
NETHERLANDS -- 4.96%
39,518 ABN Amro Holding NV (Financial)...................... 924,761
1,300 Akzo Nobel (Chemicals)*.............................. 289,003
40,500 Elsevier (Publishing & Printing)..................... 611,253
17,875 Heineken NV (Brewery)*............................... 702,135
22,872 ING Groep NV (Financial)............................. 1,497,739
5,464 KLM Royal Dutch Air (Transportation)................. 221,880
3,963 Kon Hoogovens (Iron & Steel)......................... 171,449
20,013 Koninklijke NV (Telecommunications).................. 770,374
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
NETHERLANDS (CONTINUED)
12,150 Philips Electronics (Electronic Components).......... $ 1,021,410
7,563 PolyGram NV (Music/Clubs)............................ 385,939
53,080 Royal Dutch Petroleum (Oil & Gas).................... 2,943,524
19,711 TNT Post Group NV (Transport - Services)*........... 503,895
17,240 Unilever NV (Food Processing)........................ 1,367,945
------------
11,411,307
------------
NEW ZEALAND -- 3.07%
1,859,600 Brierley Investment Co.
(Multi-Industries).................................. 925,557
644,600 Carter Holt Harvey (Forest Products & Papers)........ 561,452
220,800 Fletcher Challenge Building Ltd. -ADR (Building &
Materials).......................................... 274,741
244,600 Fletcher Challenge Energy Ltd. - ADR (Oil & Gas)..... 583,347
435,389 Fletcher Challenge Forests Ltd. - ADR (Forest
Products & Papers).................................. 243,789
439,300 Fletcher Challenge Paper Ltd. - ADR (Forest Products
& Papers)........................................... 487,403
163,700 Lion Nathan Ltd. (Brewery)........................... 363,250
6,200 New Zealand Telecom - ADR (Telecommunications)....... 203,050
830,300 Telecom Corp. of New Zealand (Telecommunications).... 3,417,970
------------
7,060,559
------------
NORWAY -- 0.22%
9,100 Norsk Hydro ASA (Manufacturing -Diversified)......... 400,581
3,100 Norske Skogindustrier ASA (Paper & Related
Products)........................................... 95,826
------------
496,407
------------
SINGAPORE -- 1.22%
52,000 City Development (Real Estate)....................... 145,145
5,000 Creative Technology Ltd.
(Computers - Peripheral)*........................... 60,615
100,000 DBS Land (Real Estate)............................... 82,791
23,700 Development Bank Of Singapore (Banking)*............. 131,044
15,000 Elec & Eltek International (Electrical Equipment).... 50,700
21,000 Fraser & Neave (Beverages)........................... 56,381
58,250 Keppel Corp. (Machinery & Equipment)................. 87,496
62,000 Keppel Land Ltd. (Real Estate)....................... 56,830
58,000 Overseas Chinese Banking Corp. (Banking)............. 197,221
27,000 Rothmans Industries Ltd. (Tobacco)................... 119,752
66,000 Singapore International Airlines (Transportation).... 308,338
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON/PREFERRED STOCKS, RIGHTS & WARRANTS
(CONTINUED)
SINGAPORE (CONTINUED)
52,968 Singapore Press Holdings Ltd. (Publishing -
Newspapers)........................................ $ 353,955
91,000 Singapore Tech Engineering Ltd. (Engineering)........ 64,039
455,000 Singapore Telecom Ltd. (Telecommunications).......... 645,771
128,000 United Overseas Bank (Banking)....................... 397,398
23,000 Venture Manufacturing Ltd. (Computers)............... 43,525
------------
2,801,001
------------
SWEDEN -- 3.23%
33,350 ABB AB, Class - A (Engineering)...................... 472,314
45,220 Astra AB, Class - A (Pharmaceuticals)................ 923,794
18,550 Electroloux AB, Class B (Appliances)................. 318,509
51,940 Ericsson LM, Class - B (Telecommunications).......... 1,516,752
8,200 Handelsbanken Rights expiring 12/31/98 (Financial)... 8,222
250 Hennes & Mauritz AB, Class - B (Clothing)............ 15,948
13,800 Investor AB, Class B - (Investment Companies)........ 805,111
108,610 Nordbanken Holding AB (Holding Company).............. 796,311
31,590 Skandia Forsakrings AB (Multi-Line Insurance)........ 451,348
9,770 Skanska AB, Class - B (Engineering).................. 438,364
10,920 Svenska Handelsbanken, Class - A (Banking -
Financial)......................................... 506,386
133,210 Swedish Match AB (Tobacco)........................... 442,425
24,090 Volvo AB (Automotive)................................ 717,063
------------
7,412,547
------------
SWITZERLAND -- 6.76%
476 ABB AG (Electrical & Electric)....................... 703,464
12,290 Credit Suisse Group (Financial)...................... 2,736,607
446 Holderbank (Building Materials & Components)......... 567,909
203 Julius Baer Holding AG, Class - B (Banking).......... 635,505
996 Nestle SA (Food Processing).......................... 2,133,018
2,133 Novartis AG (Pharmaceuticals)........................ 3,551,952
252 Roche Holding AS - Genusshein (Pharmaceuticals)...... 2,476,440
1,255 SAirGroup (Airlines)................................. 413,172
458 Saurer AG (Machinery)*............................... 468,364
586 Schw Rueckversicherungs (Insurance).................. 1,483,074
468 Sulzer AG (Manufacturing - Consumer Goods)........... 369,596
------------
15,539,101
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
UNITED KINGDOM -- 23.46%
50,000 Abbey National PLC (Commercial Banks)................ $ 890,220
255,300 B.A.T. Industries (Tobacco).......................... 2,560,285
63,000 Barclays PLC (Banking)............................... 1,818,652
26,982 Bass PLC (Brewery)................................... 506,066
290,000 Billiton PLC (Oil & Gas)............................. 585,528
32,000 BOC Group PLC (Chemicals)............................ 436,517
141,100 Booker PLC (Food Processing)......................... 582,727
194,000 British Petroleum Co. PLC (Oil & Gas)................ 2,837,375
87,000 British Sky Broadcasting Group PLC (Broadcasting &
Publishing)......................................... 628,231
556,235 British Steel PLC (Steel/Iron)....................... 1,227,487
206,600 British Telecom PLC (Telecommunications)............. 2,568,324
79,375 BTR PLC, Class - A (Diversified Operations)*......... 226,487
4,000 BTR PLC, Class - B (Diversified Operations)*......... 2,303
49,000 Cable & Wireless PLC (Telecommunications)............ 598,099
70,000 Cadbury Schweppes PLC (Food Processing).............. 1,086,869
95,053 Charter (Multi-Industries)........................... 995,274
533,400 Coats Viyella (Textiles & Apparel)................... 658,639
91,872 Diageo PLC (Wine & Spirits).......................... 1,089,973
408 Diageo PLC, Class - B (Wine & Spirits)*.............. 3,489
297,000 FKI PLC (Electronics)................................ 864,798
168,700 General Electric PLC (Electrical & Electronics)...... 1,456,761
114,800 Glaxo Welcome PLC (Pharmaceuticals).................. 3,448,081
94,000 Greenalls Group PLC (Retail -Department Stores)...... 817,200
65,755 H.S.B.C. Holdings PLC (Financial Services)........... 1,669,961
108,175 Hanson PLC (Food Processing)......................... 658,393
257,100 Hillsdown Holdings (Food Processing)................. 694,992
222,200 House Of Fraser (Retail - Department Stores)......... 650,705
135,000 Inchcape PLC (Commercial Services)................... 430,259
32,500 Legal and General (Insurance)........................ 347,349
181,700 Lloyds TSB Group PLC (Financial)..................... 2,543,782
243,100 Marks & Spencer PLC (Retail -Department Stores)...... 2,214,831
231,100 Mirror Group PLC (Publishing & Printing)............. 871,508
41,700 National Westminster Bank (Financial)................ 747,314
95,305 Peninsular & Oriental Steam Navigation Co.
(Transportation).................................... 1,381,969
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON/PREFERRED STOCKS, RIGHTS & WARRANTS (CONTINUED)
UNITED KINGDOM (CONTINUED)
35,500 Prudential Corp. PLC (Insurance)........................ $ 468,267
27,110 Reckitt & Colman (Household Products)................... 517,962
113,000 Reed International PLC (Publishing -Books).............. 1,022,919
25,133 Reuters Group PLC (Multimedia).......................... 288,327
69,100 Rio Tinto PLC (Mining).................................. 786,367
233,500 RJB Mining PLC (Mining)................................. 471,450
73,480 Royal & Sun Alliance Insurance Group PLC (Insurance).... 760,193
77,400 Scottish Hydro (Utilities - Electrical)................. 687,739
354,700 Sears (Retail - Department Stores)...................... 315,169
177,300 Sedgwick Group (Insurance).............................. 378,688
188,000 Smithkline Beecham (Pharmaceuticals).................... 2,297,886
260,762 Smurfit (Jefferson) Group (Packaging)................... 785,388
127,000 Tate & Lyle (Food Processing)........................... 1,008,727
98,600 Tesco (Retail - Grocery)................................ 967,425
66,600 Thames Water (Utilities)................................ 1,200,220
143,000 Unilever (Food Processing).............................. 1,525,947
49,000 United News & Media PLC (Publishing - Newspapers)....... 686,404
78,075 Vodafone (Telecommunications)........................... 991,424
85,000 Williams Holdings (Consumer Services)*.................. 548,545
48,000 Willis Corroon Group PLC (Multi-Line Insurance)......... 122,145
------------
53,931,640
------------
TOTAL -- COMMON STOCKS (COST $202,492,927).............. 222,122,960
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
SHORT-TERM INVESTMENTS -- 2.05%
UNITED STATES -- 0.10%
225,963 Bankers Trust Weekly Time Deposit, 5.375%, 7/1/98..... $ 225,963
UNITED STATES -- 1.96%
4,500,000 Bankers Trust Time Deposit, 6.125%, 7/1/98............ 4,500,000
------------
TOTAL -- SHORT-TERM INVESTMENTS
(COST $4,725,963).................................... 4,725,963
------------
TOTAL INVESTMENTS (COST $207,218,890) (a) -- 98.68%... 226,848,923
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.32%................................. 3,025,997
------------
TOTAL NET ASSETS -- 100.00%........................... $229,874,920
============
</TABLE>
- --------
* Non-income producing securities
(a) At June 30, 1998, the aggregate cost of investment securities for income
tax purposes was $210,738,363. Cost for federal income tax purposes
differs from value of net unrealized appreciation of securities as
follows:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $ 33,050,582
Unrealized depreciation......................................... (16,940,022)
------------
Net unrealized appreciation..................................... $ 16,110,560
============
</TABLE>
ADR--American Depository Receipt
PLC--Public Liability Company
<TABLE>
<CAPTION>
CONTRACT VALUE ON
AMOUNT SETTLEMENT ORIGINATION VALUE ON APPRECIATION
(LOCAL CURRENCY) FORWARD EXCHANGE DATE DATE 6/30/98 (DEPRECIATION)
---------------- CONTRACTS ---------- ------------ ------------ --------------
<C> <S> <C> <C> <C> <C>
CURRENCY PURCHASED
5,600,000 Canadian Dollar......... 8/20/98 $ 3,897,466 $ 3,812,377 ($85,089)
11,400,000 Danish Kroner........... 8/20/98 1,656,110 1,659,050 2,940
5,100,000 French Franc............ 8/20/98 842,279 846,052 3,773
2,250,000 German Mark............. 8/20/98 1,245,847 1,250,486 4,639
428,000,000 Japanese Yen............ 8/20/98 3,475,295 3,105,725 (369,570)
2,420,000,000 Italian Lire............ 8/20/98 1,356,272 1,361,539 5,267
3,000,000 Netherlands Guilder..... 8/20/98 1,476,116 1,479,217 3,101
1,026,000,000 Spanish Peseta.......... 8/20/98 6,687,655 6,711,146 23,491
2,650,000 Swiss Franc............. 8/20/98 1,844,184 1,756,712 (87,472)
------------ ------------ ---------
Total Currency Purchased $ 22,481,224 $ 21,982,304 ($498,920)
============ ============ =========
CURRENCY SOLD
(180,500,000) Belgian Franc........... 8/20/98 ($4,843,777) ($4,862,870) ($19,092)
(9,800,000) British Pound........... 8/20/98 (15,970,673) (16,309,956) (339,283)
(18,900,000) Finnish Markka.......... 8/20/98 (3,464,042) (3,445,572) 18,469
(11,000,000) Hong Kong Dollar........ 8/20/98 (1,414,246) (1,412,212) 2,033
(2,450,000) Singapore Dollar........ 8/20/98 (1,452,282) (1,444,746) 7,536
------------ ------------ ---------
Total Currency Sold ($27,145,019) ($27,475,357) ($330,337)
============ ============ =========
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments -- June 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MATURITY VALUE
AMOUNT DESCRIPTION RATE DATE (NOTE 2)
--------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS -- 98.51%
ALABAMA -- 1.08%
275,000 Birmingham, Alabama North Medical
Clinic, Escrowed to Maturity........ 6.625% 4/1/00 $ 287,375
36,388 Homewood Alabama, Prerefunded 2/1/99
@ 102............................... 8.250% 2/1/04 35,000
180,000 Pell City Alabama Industrial
Development, Shelby Steel
Fabricators, AMT
(LOC - Southtrust Bank)............. 7.700% 9/1/01 181,492
-----------
505,255
-----------
ARIZONA -- 0.77%
55,000 Marico County Arizona Industrial
Development Authority, Housing
Facility Revenue, Escrowed to
Maturity............................ 6.750% 12/1/03 58,231
300,000 Valley Housing Development Revenue,
Section 8 Assistance................ 8.000% 10/1/20 302,706
-----------
360,937
-----------
ARKANSAS -- 8.53%
95,000 Arkansas State Development Finance
Authority (Insured FHA)............. 8.000% 8/15/11 102,244
2,400,000 Arkansas State Development Finance
Authority (Insured MBIA)............ 5.100% 10/1/16 2,445,000
950,000 Rogers Arkansas Sales & Use Tax
Revenue............................. 5.000% 11/1/15 953,563
305,277 Springdale Arkansas Residential
Housing, Series A (FNMA
Collateral)......................... 7.650% 9/1/11 332,752
145,000 Washington County Hospital Revenue,
Escrowed to Maturity (Insured -
AMBAC)............................. 6.500% 1/1/00 148,081
-----------
3,981,640
-----------
CALIFORNIA -- 9.32%
1,500,000 Abag Financial Authority For
Nonprofit........................... 5.500% 10/1/07 1,507,500
40,000 California Health Facility Authority
Revenue, Prerefunded 5/1/99 @ 102... 7.600% 6/1/15 41,850
135,000 Chino California University School
District, Capital Construction
Project, Series A
(LOC - National Westminster),
Prerefunded 9/1/98 @ 102............ 8.000% 9/1/04 138,588
485,000 City of Vallejo Housing Authority,
Multi-Family Housing Revenue,
Mandatory Put
6/1/99 @ 100 (Surety Bond with
Continental Casualty)............... 5.000% 6/1/07 486,668
2,015,000 Los Angeles California Multifamily
Housing Revenue, AMT (FNMA
Collateral)......................... 4.850% 7/1/02 2,045,226
125,000 Los Angeles Community Redevelopment
Agency Housing Revenue.............. 5.500% 12/1/05 129,531
-----------
4,349,363
-----------
COLORADO -- 1.35%
250,000 Aurora Colorado Housing Authority,
Single Family Mortgage Revenue...... 7.300% 5/1/10 270,938
200,000 Colorado Housing Finance Authority,
AMT................................. 6.850% 8/1/22 205,500
80,000 Commerce City Colorado Single Family
Mortgage Revenue, Series A.......... 6.875% 3/1/12 84,700
70,000 Denver Colorado City & County
Industrial Development Revenue
(LOC - Colorado National Bank)...... 6.500% 6/1/99 71,320
-----------
632,458
-----------
CONNECTICUT -- 0.26%
120,000 Connecticut State Resource Recovery
Authority........................... 7.625% 1/1/09 123,450
-----------
DELAWARE -- 1.39%
75,000 Delaware Transit Authority, Escrowed
to Maturity......................... 9.000% 7/1/01 82,125
550,000 Wilmington Delaware Hospital Revenue,
Osteopathic Hospital, Series A,
Prerefunded 10/1/98 @ 102........... 10.000% 10/1/03 567,919
-----------
650,044
-----------
FLORIDA -- 5.02%
40,000 Dade County, Florida Entitlement
Revenue, Prerefunded 2/1/00 @ 103
(Insured - AMBAC)................... 9.750% 2/1/00 43,650
225,000 Dade County, Florida Health
Facilities (Insured - FHA).......... 7.600% 8/1/24 238,500
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MATURITY VALUE
AMOUNT DESCRIPTION RATE DATE (NOTE 2)
--------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
FLORIDA (CONTINUED)
2,000,000 Florida Housing Finance Authority,
Mandatory Put 12/1/99 @ 100,
(LOC - First Union National Bank)... 4.850% 12/1/05 $ 2,008,580
50,000 Florida State Division Board Finance
Department (Insured - MBIA)......... 6.600% 7/1/02 50,875
-----------
2,341,605
-----------
GEORGIA -- 1.66%
120,000 Cobb County, Georgia Water & Sewer,
Escrowed to Maturity................ 9.500% 1/1/02 140,700
80,000 Fulton County Housing Authority,
Single-Family Revenue, AMT (GNMA
Collateral)......................... 6.200% 3/1/13 84,600
260,000 Gwinnett County, Development
Authority, AMT (LOC - Suntrust
Bank)............................... 3.900% 3/1/99 260,270
290,000 Gwinnett County, Development
Authority, AMT, (LOC - Suntrust
Bank)............................... 4.050% 3/1/00 290,363
-----------
775,933
-----------
ILLINOIS -- 7.24%
270,000 Bloomingdale, Illinois Water & Sewer
(Insured - MBIA).................... 7.800% 5/1/06 289,238
2,000,000 Illinois Health Facilities Authority,
Partial Prerefunded 4/1/99 @ 102.... 7.375% 4/1/08 2,090,140
100,000 Illinois State, General Obligation
Bonds............................... 4.750% 8/1/99 100,068
95,000 Macomb Illinois Elderly Housing Corp.
Revenue............................. 7.250% 9/1/98 95,251
295,000 McDonough County, Hospital District.. 4.100% 7/1/99 294,743
500,000 St. Clair County Public Building
Revenue, Escrowed to Maturity
(Insured - MBIA).................... 8.000% 12/1/05 508,430
-----------
3,377,870
-----------
INDIANA -- 5.91%
225,000 Adams County Industrial Economic
Development Revenue, AMT (LOC - Fuji
Bank)............................... 7.450% 6/1/00 229,219
1,385,000 Lawrence Indiana Multifamily Revenue,
AMT (FNMA Collateral)............... 5.050% 1/1/08 1,430,013
1,000,000 Mun-Del Building Corp. (Insured -
AMBAC)............................. 7.000% 1/5/05 1,057,500
40,000 Vigo County Indiana Hospital
Authority Revenue, Prerefunded
4/1/99 @ 100........................ 10.375% 4/1/10 41,916
-----------
2,758,648
-----------
KANSAS -- 0.05%
25,000 Wichita Kansas Hospital Development,
Escrowed to Maturity................ 6.625% 10/1/98 25,142
-----------
KENTUCKY -- 0.15%
65,000 Kentucky State Pollution Authority,
Escrowed to Maturity................ 5.900% 8/1/03 68,088
-----------
LOUISIANA -- 7.43%
170,000 Calcasieu Parish Louisiana Public
Transportation Authority............ 6.375% 11/1/02 180,413
20,000 East Baton Rouge Parish Hospital,
Escrowed to Maturity................ 6.200% 10/1/02 20,875
2,500,000 Louisiana Public Facility Authority,
Series A-1, Mandatory Put 6/1/02 @
100
(Insured - AMBAC)................... 5.000% 6/1/02 2,571,874
325,000 Parish of Ouachita Louisiana
Industrial Development (LOC -
Regions Bank of Louisiana)......... 4.800% 8/1/02 330,281
195,000 Parish of Ouachita Louisiana
Industrial Development (LOC -
Regions Bank of Louisiana)......... 4.300% 8/1/99 195,398
170,000 Parish of Ouachita Louisiana
Industrial Development (LOC -
Regions Bank of Louisiana)......... 4.125% 8/1/98 170,036
-----------
3,468,877
-----------
MAINE -- 3.06%
65,000 Maine Educational Loan Authority,
AMT................................. 6.150% 12/1/98 65,600
1,100,000 Maine Finance Authority Revenue, AMT
(Insured FSA)....................... 5.200% 7/1/18 1,102,749
250,000 Maine State Housing Authority........ 7.900% 11/15/06 258,173
-----------
1,426,522
-----------
MASSACHUSETTS -- 1.31%
75,000 Boston Water & Sewer, Escrowed to
Maturity............................ 10.650% 1/1/99 76,499
485,000 Massachusetts Finance Agency,
Prerefunded 11/15/00 @ 102.......... 8.400% 11/15/08 536,532
-----------
613,031
-----------
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MATURITY VALUE
AMOUNT DESCRIPTION RATE DATE (NOTE 2)
--------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN -- 4.35%
455,000 Michigan State Housing Development
Authority........................... 10.375% 4/1/10 $ 507,894
1,305,000 Michigan State Housing Development
Authority, Home Improvement, Series
B, AMT.............................. 7.650% 12/1/12 1,365,356
155,000 Michigan State Strategic Fund
(Insured - FHA)..................... 6.000% 2/1/00 157,713
-----------
2,030,963
-----------
MINNESOTA -- 1.52%
400,000 Apple Valley Housing Development
Revenue (LOC - Banque Paribas)...... 7.400% 8/1/98 400,700
53,000 Dakota County Housing Authority, AMT
(GNMA/FNMA Collateral).............. 5.100% 10/1/98 53,183
100,000 Dakota County, Minnesota, AMT
(GNMA/FNMA Collateral).............. 5.200% 10/1/99 101,375
150,000 St Paul Minnesota Port Authority,
Pre-Refunded 12/1/98 @ 102.......... 8.000% 12/1/07 155,622
-----------
710,880
-----------
MISSISSIPPI -- 1.09%
180,000 Jackson County, Port Improvement
Projects, AMT....................... 6.500% 5/1/99 183,713
250,000 Mississippi Business Finance Corp.
Industrial Development Authority,
Series 1996, AMT
(LOC - National Bank Commerce)...... 4.800% 9/1/98 250,185
75,000 Mississippi Home Corp. Mortgage
Access Program, Single-Family
Mortgage Revenue, AMT (GNMA
Collateral)......................... 4.500% 6/1/99 75,201
-----------
509,099
-----------
MISSOURI -- 0.89%
375,000 St. Louis County, Single-Family
Mortgage Revenue (Insured - AMBAC).. 9.250% 10/1/16 413,438
-----------
NEBRASKA -- 0.49%
195,000 Consumer Public Power................ 5.100% 1/1/03 195,608
35,000 Douglas County, Hospital Authority
Revenue, Escrowed to Maturity....... 7.250% 10/1/98 35,169
-----------
230,777
-----------
NEVADA -- 0.09%
40,000 Washoe Nevada Housing and Finance
(Insured - MBIA FHA221 (D) 4)....... 6.875% 7/1/21 42,250
-----------
NEW HAMPSHIRE -- 0.87%
395,000 New Hampshire State Housing Finance
Authority, AMT (LOC - Bank of Tokyo
Mitsubishi)......................... 7.900% 7/1/00 405,369
-----------
NEW MEXICO -- 0.54%
250,000 Alamagordo Municipal School
District............................ 7.125% 1/15/08 252,690
-----------
NEW YORK -- 6.23%
425,000 Amherst New York Individual
Development Agency (LOC - Keybank).. 4.500% 10/1/00 425,531
445,000 Amherst New York Individual
Development Agency (LOC - Keybank).. 4.650% 10/1/01 446,669
540,000 New York City Industrial Development
Revenue, Series I, AMT, Mandatory
Put 11/1/98 @ 100 (LOC - Algemene
Bank)............................... 8.000% 11/1/08 541,820
1,060,000 New York City Industrial Development
Revenue, Series J, AMT, Mandatory
Put 11/1/98 @ 100 (LOC - Algemene
Bank)............................... 8.000% 11/1/08 1,063,572
420,000 New York State Housing Finance
Agency.............................. 7.900% 11/1/99 431,550
-----------
2,909,142
-----------
OHIO -- 0.88%
150,000 Lucas County Ohio Hospital Revenue,
Prerefunded 11/15/99 @ 102
(Insured - MBIA).................... 6.750% 11/15/09 157,500
110,000 Ohio State Air Quality Development
Authority Revenue, Escrowed to
Maturity
(LOC - Societe Generale)............ 7.875% 11/1/00 115,913
120,000 Ohio State Water Development
Authority Revenue, Escrowed to
Maturity............................ 8.000% 12/1/04 135,150
-----------
408,563
-----------
</TABLE>
See accompanying notes to financial statements.
35
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MATURITY VALUE
AMOUNT DESCRIPTION RATE DATE (NOTE 2)
--------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
OKLAHOMA -- 0.78%
355,000 Oklahoma State Industrial Authority
Revenue, Escrowed to Maturity....... 6.250% 10/1/02 $ 365,650
-----------
PENNSYLVANIA -- 11.46%
40,000 Allegheny County Pennsylvania
Hospital............................ 7.500% 8/1/13 40,462
80,000 Allegheny County Resident Authority,
Monthly Put, AMT (GNMA
Collateral)*........................ 4.100% 12/1/98 80,400
115,000 Athens Pennsylvania Area School
Authority, Escrowed to Maturity..... 6.250% 4/1/02 123,625
195,000 Beaver County Pennsylvania Industrial
Development Authority Pollution..... 6.000% 5/1/07 195,386
165,000 Catasauqua Pennsylvania Area School
Authority, Escrowed to Maturity..... 8.400% 2/15/01 174,694
95,000 Dauphin County General Authority..... 5.650% 1/1/99 95,622
500,000 Dauphin County General Authority,
Mandatory Put 6/1/00 @ 100
(Insured - AMBAC)................... 4.250% 6/1/26 500,000
50,000 Edgewood Pennsylvania School
District, Escrowed to Maturity...... 5.900% 8/1/99 50,038
100,000 Harrisburg Pennsylvania, Escrowed to
Maturity............................ 7.125% 4/1/99 102,456
50,000 Harrisburg Pennsylvania Water
Authority, Escrowed to Maturity
(Insured - FGIC).................... 6.300% 7/15/98 50,033
100,000 Hatboro Horsham Pennsylvania School
District............................ 6.200% 9/1/98 100,406
105,000 Mars Pennsylvania Area School
District (Insured - MBIA)**......... 4.110% 9/1/98 104,433
550,000 Metropolitan Lancaster Pa............ 4.250% 2/15/00 549,890
20,000 Pennsylvania Higher Education,
Medical College, Prerefunded 3/1/99
@ 102............................... 8.100% 3/1/00 20,674
1,000,000 Pennsylvania State Financing
Authority........................... 6.600% 11/1/09 1,098,749
320,000 Philadelphia Hospital & Higher
Education Authority, Moss
Rehabilitation Hospital Revenue
(Insured - AMBAC)................... 6.900% 7/1/00 337,200
510,000 Philadelphia Muni Authority,
Prerefunded 4/1/00 @ 100 (Insured -
FGIC).............................. 7.800% 4/1/18 543,150
25,000 Radnor Township School Authority,
Escrowed to Maturity................ 5.850% 10/15/01 25,281
555,000 Scranton Lackawanna Health & Welfare
Authority........................... 4.750% 7/1/98 554,999
110,000 Scranton Pennsylvania (Insured -
Asset GTY)......................... 4.200% 11/15/99 110,550
100,000 Susquehanna Township Pennsylvania.... 5.000% 10/15/98 100,386
305,000 William Penn School District,
Escrowed to Maturity................ 8.000% 8/1/00 329,019
60,000 Windber Area Authority Hospital
Revenue, Hospital Project, Escrowed
to Maturity
(Insured FHA)....................... 4.750% 2/1/00 60,750
-----------
5,348,203
-----------
PUERTO RICO -- 0.08%
35,000 Puerto Rico Commonwealth Aquaduct &
Sewer Authority Revenue, Escrowed to
Maturity............................ 7.875% 7/1/99 35,709
-----------
SOUTH DAKOTA -- 0.54%
250,000 South Dakota Student Loan Assistance
Corp., Escrowed to Maturity......... 7.000% 8/1/98 250,570
-----------
TENNESSEE -- 3.77%
400,000 Fayetteville & Lincoln Tennessee
Industrial Development Board, AMT
(LOC - First Union Bank)............ 5.000% 6/1/01 405,499
350,000 Fayetteville & Lincoln Tennessee
Industrial Development Board
Revenue, AMT
(LOC - First Union Bank)............ 4.750% 6/1/99 351,579
330,000 Metro Government Nashville & Davidson
County Industrial Development Board
Revenue (Insured - FHA 221 (D) 4)... 6.250% 7/1/02 344,438
175,000 Metro Government Nashville & Davidson
County Industrial Development Board
Revenue (Insured - FHA 221 (D) 4)... 6.250% 7/1/02 183,313
450,000 Shelby County Tennessee Health &
Housing (Insured - Asset GTY)....... 6.000% 10/1/02 473,062
-----------
1,757,891
-----------
TEXAS -- 1.66%
140,000 Austin, Texas Water, Sewer and
Electric............................ 14.000% 11/15/01 165,900
170,000 Bexar County, Texas Health Facility
(LOC - Banque Paribas).............. 7.500% 12/1/98 172,455
</TABLE>
See accompanying notes to financial statements.
36
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1998
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL SECURITY MATURITY VALUE
AMOUNT DESCRIPTION RATE DATE (NOTE 2)
--------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
TEXAS (CONTINUED)
240,000 San Antonio Texas Electric & Gas
(Insured - FGIC)..................... 5.250% 2/1/00 $ 240,244
190,000 Texas Water Resource Financial
Authority (Surety Bond with AMBAC)... 7.000% 8/15/99 196,413
-----------
775,012
-----------
VERMONT -- 0.22%
100,000 University of Vermont & State
Agriculture College.................. 7.700% 11/1/02 104,095
-----------
VIRGINIA -- 1.76%
540,000 King George County Industrial
Development Authority, King County
Elementary School.................... 4.875% 8/1/98 540,286
275,000 Virginia State Water & Sewer Revenue,
Series B (FNMA GIC).................. 8.700% 11/1/11 279,576
-----------
819,862
-----------
WASHINGTON -- 6.32%
2,750,000 Washington State Health Care
Facilities Authority Revenue (LOC -
AIB Group).......................... 7.875% 12/1/09 2,949,375
-----------
WISCONSIN -- 0.44%
45,000 Madison Wisconsin Hospital Revenue,
Escrowed to Maturity................. 7.000% 6/1/00 47,306
50,000 Racine Wisconsin Promissory Notes,
Series A............................. 4.600% 12/1/98 50,211
90,000 Wisconsin Housing & Economic
Development Authority, AMT (Insured -
FHA)................................ 7.300% 9/1/99 91,912
15,000 Wisconsin Housing & Economic
Development Authority, Series B, AMT
(GEMIC Pool)......................... 6.625% 9/1/20 15,263
-----------
204,692
-----------
TOTAL MUNICIPAL BONDS (COST
$45,518,979)......................... 45,983,093
-----------
SHORT-TERM INVESTMENTS -- 0.44%
202,785 Provident Municipal Money Market...... 202,785
-----------
TOTAL SHORT-TERM INVESTMENTS (COST
$202,785)............................ 202,785
-----------
TOTAL INVESTMENTS (COST $45,721,764)
(a) -- 98.95%........................ 46,185,878
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.05%.................. 491,079
-----------
TOTAL NET ASSETS -- 100.00%........... $46,676,957
===========
</TABLE>
- --------
* Variable rate security. Rate in effect at June 30, 1998. Maturity date
reflects next rate change date.
** Zero coupon bond. Rate reflects effective yield.
(a) At June 30, 1998, the aggregate cost of investment securities for federal
income tax purposes is substantially the same and differs from the value
of net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $528,975
Unrealized depreciation............................................. (64,861)
--------
Net unrealized appreciation......................................... $464,114
========
</TABLE>
AIB--Allied Irish Bank
AMT--Alternative Minimum Tax
AMBAC--AMBAC Indemnity Corporation
FGIC--Financial Guaranty Insurance Company
FHA--Federal Housing Authority
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance, Inc.
GEMIC--General Electric Mortgage Insurance Co.
GIC--Guaranteed Investment Contract
GNMA--Government National Mortgage Association
GTY--Guaranteed
LOC--Letter of Credit
MBIA--Municipal Bond Insurance Association
See accompanying notes to financial statements.
37
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Assets and Liabilities
June 30, 1998
<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 (cost
$152,063,807; $164,704,692;
$145,072,208; $207,218,890;
and $45,721,764
respectively).............. $176,146,172 $214,831,719 $152,438,638 $226,848,923 $46,185,878
Foreign currency, at value
(cost $0; $0; $0;
$2,825,955; and $0
respectively).............. -- -- -- 2,825,212 --
Unrealized appreciation on
forward exchange
contracts.................. -- -- -- 86,850 --
Receivable for investments
sold....................... 371,273 1,946,610 263,029 6,447,211 --
Dividends and interest
receivable................. 301,413 101,028 102,320 680,984 689,303
Foreign tax reclaim
receivable................. -- -- -- 392,284 --
Deferred organization
costs...................... 13,315 13,629 13,534 13,197 14,105
------------ ------------ ------------ ------------ -----------
Total Assets............. 176,832,173 216,892,986 152,817,521 237,294,661 46,889,286
------------ ------------ ------------ ------------ -----------
LIABILITIES:
Payable to custodian........ -- 5,794 -- 237,492 --
Dividends payable........... -- -- -- -- 181,147
Payable for investments
purchased.................. 136,291 647,746 2,192,019 6,074,720 --
Unrealized depreciation on
forward
exchange contracts......... -- -- -- 915,832 --
Advisory fees payable....... 47,504 51,392 46,080 72,911 7,795
Consulting fees payable..... 7,193 8,566 5,993 9,242 1,949
Administrative services fees
payable.................... 2,396 2,950 2,029 3,096 512
Legal and audit fees
payable.................... 16,668 18,664 18,328 19,350 9,994
Other accrued expenses...... 34,941 29,226 26,362 87,098 10,932
------------ ------------ ------------ ------------ -----------
Total Liabilities........ 244,993 764,338 2,290,811 7,419,741 212,329
------------ ------------ ------------ ------------ -----------
NET ASSETS................... $176,587,180 $216,128,648 $150,526,710 $229,874,920 $46,676,957
============ ============ ============ ============ ===========
NET ASSETS CONSIST OF:
Shares of beneficial
interest, at par value..... $ 11,398 $ 14,168 $ 11,464 $ 18,099 $ 4,619
Additional paid-in capital.. 135,540,346 152,065,415 129,274,310 206,615,371 46,462,978
Accumulated undistributed
net investment income...... 92,293 180 46,650 360,794 116
Accumulated undistributed
net realized gain/(loss) on
investments, futures and
foreign currency
transactions............... 16,860,778 13,893,678 13,827,856 4,085,066 (254,870)
Net unrealized
appreciation/(depreciation)
on investments, futures and
foreign currency
transactions............... 24,082,365 50,155,207 7,366,430 18,795,590 464,114
------------ ------------ ------------ ------------ -----------
Total Net Assets......... $176,587,180 $216,128,648 $150,526,710 $229,874,920 $46,676,957
============ ============ ============ ============ ===========
SHARES OF BENEFICIAL
INTEREST:
Shares of beneficial
interest outstanding....... 11,397,618 14,167,790 11,464,044 18,099,305 4,618,693
============ ============ ============ ============ ===========
Net Asset Value, offering
and redemption
price per share............ $ 15.49 $ 15.25 $ 13.13 $ 12.70 $ 10.11
============ ============ ============ ============ ===========
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Operations
For the Year Ended June 30, 1998
<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................... $ 275,258 $ 181,187 $ 431,750 $ 509,325 $2,411,317
Dividends (net of foreign
withholding tax of $6,572;
$0; $0; $450,382 and $0,
respectively)............. 3,011,994 1,461,076 1,103,327 4,227,729 --
----------- ----------- ----------- ----------- ----------
Total Investment Income.. 3,287,252 1,642,263 1,535,077 4,737,054 2,411,317
----------- ----------- ----------- ----------- ----------
EXPENSES:
Advisory fees.............. 466,737 576,552 597,954 698,930 94,162
Consulting fees............ 74,299 96,094 69,076 87,636 23,541
Administrative services
fees....................... 148,594 192,182 138,149 175,266 39,787
Custodian fees............. 21,672 47,802 26,458 138,183 6,673
Audit and legal fees....... 21,270 37,256 36,727 29,338 18,534
Registration and filing
fees....................... 18,167 24,824 28,714 30,316 14,263
Fund accounting fees....... 7,131 12,946 24,820 38,832 24,129
Transfer agency fees....... 4,929 7,627 10,918 7,093 1,930
Trustees' fees and
expenses................... 5,025 6,112 9,293 5,579 1,765
Organization expenses...... 6,223 6,223 6,223 6,223 6,223
Other expenses............. 5,025 8,607 18,346 18,679 9,046
----------- ----------- ----------- ----------- ----------
Total Expenses before
waivers and expenses paid
indirectly................ 779,072 1,016,225 966,678 1,236,075 240,053
Less: Expenses waived by
administrator............. -- -- -- -- (10,612)
Less: Expenses paid
indirectly................ (7,359) (6,852) (2,027) (2,070) (5,986)
----------- ----------- ----------- ----------- ----------
Total Net Expenses....... 771,713 1,009,373 964,651 1,234,005 223,455
----------- ----------- ----------- ----------- ----------
Net Investment Income...... 2,515,539 632,890 570,426 3,503,049 2,187,862
----------- ----------- ----------- ----------- ----------
NET REALIZED/UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on
investments, futures and
foreign currency
transactions.............. 23,127,424 40,192,942 19,676,905 6,336,894 (91,196)
Net change in unrealized
appreciation/(depreciation)
on investments, futures
and foreign currency
transactions.............. 4,834,455 18,930,310 (5,878,984) 1,112,830 373,857
----------- ----------- ----------- ----------- ----------
Net realized/unrealized
gain on investments,
futures and foreign
currency transactions..... 27,961,879 59,123,252 13,797,921 7,449,724 282,661
----------- ----------- ----------- ----------- ----------
Net increase in net assets
resulting from
operations................ $30,477,418 $59,756,142 $14,368,347 $10,952,773 $2,470,523
=========== =========== =========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
SMALL CAPITALIZATION
VALUE EQUITY PORTFOLIO GROWTH EQUITY PORTFOLIO EQUITY PORTFOLIO
-------------------------- -------------------------- --------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income...... $ 2,515,539 $ 1,694,808 $ 632,890 $ 636,241 $ 570,426 $ 560,864
Net realized gain/(loss) on
investments, futures and
foreign currency
transactions.............. 23,127,424 11,284,813 40,192,942 8,397,467 19,676,905 7,442,963
Net change in unrealized
appreciation/(depreciation)
on investments, futures
and foreign currency
transactions.............. 4,834,455 15,566,341 18,930,310 20,723,713 (5,878,984) 8,992,626
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets
resulting from
operations................ 30,477,418 28,545,962 59,756,142 29,757,421 14,368,347 16,996,453
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income...... (2,581,986) (1,536,068) (723,410) (545,676) (582,905) (518,366)
In excess of net investment
income -- -- (115,822) -- -- --
Net realized gain on
investments, futures and
foreign currency
transactions.............. (15,909,634) (4,971,574) (32,337,330) (567,013) (12,757,181) (1,532,810)
------------ ------------ ------------ ------------ ------------ ------------
Net decrease in net assets
resulting from
distributions............. (18,491,620) (6,507,642) (33,176,562) (1,112,689) (13,340,086) (2,051,176)
------------ ------------ ------------ ------------ ------------ ------------
SHARES OF BENEFICIAL
INTEREST:
Proceeds from shares
issued.................... 79,850,717 33,669,862 60,460,192 42,079,726 52,923,820 44,305,033
Proceeds from reinvestment
of dividends.............. 16,699,355 6,067,655 31,066,397 972,424 11,976,524 1,812,353
Cost of shares redeemed.... (49,040,371) (16,186,788) (62,938,761) (21,272,202) (28,881,423) (9,085,673)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets
from shares of beneficial
interest transactions..... 47,509,701 23,550,729 28,587,828 21,779,948 36,018,921 37,031,713
------------ ------------ ------------ ------------ ------------ ------------
Total increase in net
assets..................... 59,495,499 45,589,049 55,167,408 50,424,680 37,047,182 51,976,990
NET ASSETS:
Beginning of period........ 117,091,681 71,502,632 160,961,240 110,536,560 113,479,528 61,502,538
------------ ------------ ------------ ------------ ------------ ------------
End of period.............. $176,587,180 $117,091,681 $216,128,648 $160,961,240 $150,526,710 $113,479,528
============ ============ ============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
40
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
INTERNATIONAL LIMITED DURATION
EQUITY PORTFOLIO MUNICIPAL BOND PORTFOLIO
-------------------------- --------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income...... $ 3,503,049 $ 2,087,933 $ 2,187,862 $ 1,577,857
Net realized gain/(loss) on
investments, futures and
foreign currency
transactions.............. 6,336,894 7,069,870 (91,196) (114,094)
Net change in unrealized
appreciation/(depreciation)
on investments, futures
and foreign currency
transactions.............. 1,112,830 12,845,826 373,857 176,715
------------ ------------ ------------ ------------
Net increase in net assets
resulting from
operations................ 10,952,773 22,003,629 2,470,523 1,640,478
------------ ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income...... (7,034,223) (2,087,933) (2,187,862) (1,577,856)
In excess of net investment
income.................... -- (470,570) -- --
Net realized gain on
investments, futures and
foreign currency
transactions.............. (4,217,931) (2,559,827) -- --
------------ ------------ ------------ ------------
Net decrease in net assets
resulting from
distributions............. (11,252,154) (5,118,330) (2,187,862) (1,577,856)
------------ ------------ ------------ ------------
SHARES OF BENEFICIAL
INTEREST:
Proceeds from shares
issued.................... 104,993,738 58,555,291 77,839,730 59,269,604
Proceeds from reinvestment
of dividends.............. 10,125,963 4,492,529 1,797,773 1,406,537
Cost of shares redeemed.... (31,067,352) (11,543,042) (74,205,989) (49,260,726)
------------ ------------ ------------ ------------
Net increase in net assets
from shares of beneficial
interest transactions..... 84,052,349 51,504,778 5,431,514 11,415,415
------------ ------------ ------------ ------------
Total increase in net
assets.................... 83,752,968 68,390,077 5,714,175 11,478,037
NET ASSETS:
Beginning of period........ 146,121,952 77,731,875 40,962,782 29,484,745
------------ ------------ ------------ ------------
End of period.............. $229,874,920 $146,121,952 $ 46,676,957 $ 40,962,782
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
41
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements -- June 30, 1998
1. DESCRIPTION. The Hirtle Callaghan Trust ("Trust") is registered under the
Investment Company Act of 1940, as amended ("1940 Act"), as an open-end
management investment company. The Trust was organized as a Delaware business
trust on December 15, 1994. The Trust currently offers 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). A registration statement relating to two
new portfolios, the Intermediate Term Municipal Bond Portfolio and the Fixed
Income Portfolio, has been approved and the Funds will commence operations on
July 1, 1998.
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 that 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 ("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 dividends 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.
42
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1998
As of June 30, 1998, the following reclassifications have been made to
increase/(decrease) such accounts with offsetting adjustments made to
capital:
<TABLE>
<CAPTION>
ACCUMULATED
ACCUMULATED UNDISTRIBUTED NET
UNDISTRIBUTED NET REALIZED GAIN/(LOSS)
INVESTMENT INCOME ON INVESTMENTS
----------------- --------------------
<S> <C> <C>
Growth Portfolio................ 116,002 (115,957)
Small Cap Portfolio............. 16,459 (16,459)
International Portfolio......... 301,721 (301,721)
Limited Duration Portfolio...... 116 (116)
</TABLE>
D. 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 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 including accrued interest. Repurchase agreements are
considered to be loans under the 1940 Act.
E. Organizational Expenses. Costs incurred in connection with the
organization and initial registration of the Portfolios have been deferred
and are being amortized on a straight-line basis over sixty months,
beginning with each Portfolio's commencement of operations. In the event
any of the initial shares of the Portfolios are redeemed during the
amortization period, the redemption proceeds will be reduced by a pro rata
portion of any unamortized organization expenses in the proportion as the
number of shares being redeemed bears to the number of initial shares
outstanding at the time of redemption.
F. 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.
G. Foreign Exchange Transactions. The books and records of the Portfolios
are maintained in U.S. dollars. Non-U.S. denominated amounts are translated
into U.S. dollars as follows, with the resultant exchange gains and losses
recorded in the Statement of Operations:
i) market value of investment securities and other assets and
liabilities at the exchange rate on the valuation date,
ii) purchases and sales of investment securities, income and
expenses at the exchange rate prevailing on the respective date of
such transactions.
H. Use of Estimates. Estimates and assumptions are required to be made
regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets, and any other parameters used in
determining these estimates could cause results to differ from these
amounts.
43
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1998
I. Other. The Portfolios maintain cash balances with their custodian and
receive a reduction of their custody fees and expenses for the amount of
interest earned on such uninvested cash balances. For financial reporting
purposes, for the year ended June 30, 1998, the amounts recorded on the
Statement of Operations as reduction of expenses were $7,359, $6,852,
$2,027, $2,070 and $5,986 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 ("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 earns a fee, accrued daily and
paid monthly, based on average net assets of that portion of the portfolio
managed.
For the year ended June 30, 1998, the Value Portfolio paid the following
investment advisory fees:
<TABLE>
<CAPTION>
AMOUNT EFFECTIVE
ADVISER EARNED FEE DATE
- ------- -------- ----- -------------------
<S> <C> <C> <C>
Hotchkis & Wiley............................. $174,556 0.30% 07/01/97 - 06/30/98
Institutional Capital Corp................... 292,181 0.30% 07/01/97 - 02/01/98
0.35% 02/02/98 - 06/30/98
-------- -----
$466,737 0.31%
======== =====
</TABLE>
For the year ended June 30, 1998, the Growth Portfolio paid the following
investment advisory fees:
<TABLE>
<CAPTION>
AMOUNT EFFECTIVE
ADVISER EARNED FEE DATE
- ------- -------- ----- -------------------
<S> <C> <C> <C>
Jennison Associates LLC...................... $379,252 0.30% 07/01/97 - 06/30/98
Westfield Capital Management Co.............. 46,774 0.30% 07/01/97 - 09/30/97
Goldman Sachs Asset Management............... 150,526 0.30% 10/01/97 - 06/30/98
-------- -----
$576,552 0.30%
======== =====
</TABLE>
For the year ended June 30, 1998, the Small Cap Portfolio paid the following
investment advisory fees:
<TABLE>
<CAPTION>
AMOUNT EFFECTIVE
ADVISER EARNED FEE DATE
- ------- -------- ----- -------------------
<S> <C> <C> <C>
Frontier Capital Management Co............... $346,569 0.45% 07/01/97 - 06/30/98
Clover Capital Management.................... 203,946 0.45% 07/01/97 - 03/31/98
Geewax, Terker & Co.......................... 47,439 0.30% 04/01/98 - 06/30/98
-------- -----
$597,954 0.43%
======== =====
</TABLE>
For the year ended June 30, 1998, the International Portfolio paid the
following investment advisory fees:
<TABLE>
<CAPTION>
AMOUNT EFFECTIVE
ADVISER EARNED FEE DATE
- ------- -------- ----- -------------------
<S> <C> <C> <C>
Brinson Partners, Inc...................... $698,930 0.40% 07/01/97 - 05/05/98
========
0.40%* 05/06/98 - 06/30/98
-----
0.40%
=====
</TABLE>
*Tiered fee of 0.40% on first $200 million of assets: 0.35% on the next $100
million of assets; and 0.30% on assets over $300 million.
44
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1998
For the year ended June 30, 1998, the Limited Duration Portfolio paid the
following investment advisory fees:
<TABLE>
<CAPTION>
AMOUNT EFFECTIVE
ADVISER EARNED FEE DATE
- ------- ------- ----- -------------------
<S> <C> <C> <C>
Morgan Grenfell Capital Mgmt., Inc............ $94,162 0.20% 07/01/97 - 06/30/98
</TABLE>
The Trust has conditionally approved an amendment to the Portfolio
Management Contract between GSAM and the Trust relating to the Growth
Portfolio. Under the amendment ("Performance Fee Amendment"), GSAM would be
compensated based, in part, on the investment results achieved. Implementation
of the Performance Fee Amendment, however, is subject to receipt of certain
assurances from the staff of the SEC that such implementation will not be
viewed by the SEC staff as inconsistent with the requirements of the
Investment Advisers Act. There can be no assurance that such relief will be
granted by the SEC. If the Performance Fee Amendment is implemented, it could,
under certain circumstances, increase or decrease the fee paid to GSAM, when
compared to the current fixed fee arrangement and could result in the payment
of incentive compensation during periods of declining markets.
Pursuant to a consulting agreement between the Trust and Hirtle Callaghan &
Company, Inc. ("HCCI"), 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.
BISYS Fund Services ("BISYS") is responsible for providing the Portfolios
with administrative, fund accounting, dividend and capital gains disbursing
agent and transfer agency services. Effective October 1, 1997, the
Administration, Fund Accounting and Transfer Agency Agreements were amended to
provide that BISYS would receive as compensation for administration, fund
accounting and transfer agency services an all inclusive fee ("Omnibus Fee")
of 0.10% of the Portfolio's average net assets attributable to the Value,
Growth, Small Cap and International Portfolios and 0.08% of the Portfolio's
average net assets attributable to the Limited Duration Portfolio and any
additional fixed income portfolios created in the future plus reimbursement
for certain out-of-pocket expenses. The Omnibus fee is accrued daily and
payable on a monthly basis.
For the period July 1, 1997 through September 30, 1997, Administration
services were provided to the Trust by BISYS under the terms of an
Administration Agreement ("Administration Agreement") between BISYS and the
Trust. Pursuant to the Administration Agreement, BISYS received from the Trust
an annual fee, accrued daily and payable monthly, of 0.10% of the average net
assets of the Trust. During the period July 1, 1997 through September 30,
1997, BISYS agreed to voluntarily waive fees in the Limited Duration Portfolio
in the amount of $10,612. Portfolio accounting services were provided to the
Trust under a Fund Accounting Agreement between the Trust and BISYS ("Fund
Accounting Agreement"). Pursuant to the Fund Accounting Agreement, BISYS
received a fee of $150,000 per year, plus reimbursement of certain out-of-
pocket expenses for services provided to the Trust's portfolios. Transfer
agency services and dividend and capital gain disbursing agent services were
provided to the Trust under a Transfer Agency Agreement between the Trust and
BISYS ("Transfer Agency Agreement"). Pursuant to the Transfer Agency
Agreement, BISYS received a fee of $15.00 per account per year, plus
reimbursement for certain out-of-pocket expenses.
45
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1998
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, 1998, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Value......................................... $155,602,778 $123,856,461
Growth........................................ 179,264, 004 183,983,304
Small Cap..................................... 162,763,981 134,367,674
International................................. 135,397,566 61,154,868
Limited Duration.............................. 32,892,605 17,923,470
</TABLE>
5. SHARES OF BENEFICIAL INTEREST. The Trust is authorized to issue unlimited
shares of beneficial interest with a par value of $0.001 each. Transactions in
shares of the Portfolios for the year ended June 30, 1998, were as follows:
<TABLE>
<CAPTION>
LIMITED
VALUE GROWTH SMALL CAP INTERNATIONAL DURATION
---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Beginning balance....... 8,125,355 11,771,630 8,760,246 11,375,857 4,081,395
---------- ---------- ---------- ---------- ----------
Shares issued........... 5,260,584 4,185,101 3,879,786 8,295,351 7,707,605
Shares issued in
reinvestment of
dividends
and distributions...... 1,198,241 2,490,784 938,615 876,795 177,992
Shares redeemed......... (3,186,562) (4,279,725) (2,114,603) (2,448,698) (7,348,299)
---------- ---------- ---------- ---------- ----------
Net increase in shares.. 3,272,263 2,396,160 2,703,798 6,723,448 537,298
---------- ---------- ---------- ---------- ----------
Ending balance.......... 11,397,618 14,167,790 11,464,044 18,099,305 4,618,693
========== ========== ========== ========== ==========
Transactions in shares of the Portfolios for the year ended June 30, 1997,
were as follows:
<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 issued........... 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>
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.
A forward currency contract ("forward") is an agreement between two parties
to buy and sell a currency at a set price on a future date. The market value
of the forward fluctuates with changes in currency exchange rates. The forward
is marked-to-market daily and the change in market value is recorded by the
Fund as unrealized appreciation or depreciation. When the forward is closed,
the Fund records a realized gain or loss equal to the fluctuation in value
during the period the forward was open. The Fund could be exposed to risk if a
counterparty is unable to meet the terms of a forward or if the value of the
currency changes unfavorably.
46
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1998
Forward foreign exchange contracts may involve market or credit risk in
excess of the amounts reflected on the Fund's statement of assets and
liabilities. The gain or loss from the difference between the cost of original
contracts and the amount realized upon the closing of such contracts is
included in net realized gains or losses on foreign currency transactions.
Fluctuations in the value of forward contracts held at June 30, 1998 are
recorded for financial reporting purposes as unrealized gains and losses by
the Funds.
The Funds may enter into futures contracts for the delayed delivery of
securities at a fixed price at some future date or for the change in the value
of a specified financial index over a predetermined time period. Cash or
securities are deposited with brokers in order to maintain a position.
Subsequent payments made or received by the Fund based on the daily change in
the market value of the position are recorded as unrealized appreciation or
depreciation until the contract is closed out, at which time the gain or loss
is realized.
The use of futures contracts involves, to varying degrees, elements of
market risk. Risks arise from the possible imperfect correlation in movements
in the price of futures contracts, interest rates and the underlying hedged
assets, and the possible inability of counterparties to meet the terms of
their contracts. However, the Fund's activities in futures contracts are
conducted through regulated exchanges which minimize counterparty credit
risks.
7. FEDERAL INCOME TAXES. It is the policy of each Fund to qualify or
continue to qualify as a regulated investment company by complying with the
provisions available to certain investment companies, as defined in applicable
sections of the Internal Revenue Code, and to make distributions of net
investment income and net realized capital gains sufficient to relieve it from
all, or substantially all, federal income taxes.
As of June 30, 1998, the Limited Duration Portfolio has capital loss
carryforwards available to offset future capital gains, if any, of $48,759
expiring in 2004, $42,671 expiring in 2005 and $108,281 expiring in 2006. To
the extent that these carryforwards are used to offset future capital gains,
it is probable that the gains so offset will not be distributed to
shareholders.
Capital losses incurred after October 31, within a Fund's fiscal year are
deemed to arise on the first business day of the following fiscal year for tax
purposes. The Limited Duration Portfolio incurred $55,158 in Post-October
Capital Losses and will elect to defer such capital losses. The International
Portfolio incurred $836,055 in Post-October Currency Losses and will elect to
defer such currency losses.
8. FEDERAL INCOME TAXES INFORMATION (Unaudited). During the fiscal year
ended June 30, 1998, the Funds declared mid-term capital gain distributions
and long-term capital gain distributions as follows:
<TABLE>
<CAPTION>
MID-TERM LONG-TERM
28% 20%
---------- -----------
<S> <C> <C>
Value Portfolio................................. $4,057,372 $ 2,065,696
Growth Portfolio................................ 8,278,034 14,247,231
Small Cap Portfolio............................. 4,982,832 1,939,884
International Portfolio......................... 1,961,876 1,818,709
</TABLE>
For corporate shareholders the following percentage of the total ordinary
income distributions paid during the fiscal year ended June 30, 1998 qualify
for the corporate dividend received deduction for the following funds: Value
Portfolio 21.53%, Growth Portfolio 17.13% and Small Cap Portfolio 16.42%.
47
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1998
9. SPECIAL SHAREHOLDER MEETING (Unaudited).
1. On January 12, 1998, a special meeting of the shareholders of The
Hirtle Callaghan Trust was held to consider various proposals. The
shareholders approved each of the following proposals (with actual vote
tabulations):
A. The engagement of Goldman Sachs Asset Management ("GSAM") to
provide portfolio management services to the Growth Portfolio pursuant
to a portfolio management contract between the Trust and GSAM. A total
of 11,147,128 shares were voted with respect to this proposal. All
ballots were cast, in person or by proxy, in favor of the proposal,
with no abstentions.
B. An amendment to the portfolio management contract between GSAM and
the Trust relating to the Growth Portfolio, pursuant to which amendment
GSAM would be compensated, in part, on the investment results achieved
by it. (See Note 3.) A total of 11,147,128 shares were voted with
respect to this proposal. All ballots were cast, in person or by proxy,
in favor of the proposal, with no abstentions.
C. An amendment to the Portfolio Management Agreement between the
Trust and Institutional Capital Corporation ("ICAP") relating to the
Value Portfolio, which amendment increased the fee to which ICAP is
entitled for its services to the Value Portfolio. A total of 8,377,637
shares were voted with respect to this proposal. All ballots were cast,
in person or by proxy, in favor of the proposal, with no abstentions.
2. On June 15, 1998, a special meeting of the shareholders of The Hirtle
Callaghan Trust was held to consider the engagement of Geewax, Terker &
Company ("Geewax") to provide portfolio management services to the Small
Cap Portfolio pursuant to a portfolio management contract between the Trust
and Geewax. A total of 10,028,521 shares were voted with respect to this
proposal. All ballots were cast, in person or by proxy, in favor of the
proposal, with no abstentions.
48
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SMALL CAPITALIZATION
VALUE EQUITY PORTFOLIO GROWTH EQUITY PORTFOLIO EQUITY PORTFOLIO
---------------------------- ---------------------------- ----------------------------
YEAR YEAR PERIOD YEAR YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1996(a) 1998 1997 1996(b) 1998 1997 1996(c)
-------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 14.41 $ 11.48 $ 10.00 $ 13.67 $ 11.13 $ 10.00 $ 12.95 $ 11.07 $ 10.00
-------- -------- ------- -------- -------- -------- -------- -------- -------
Income from Investment
Operations:
Net investment income... 0.24 0.23 0.22 0.04 0.06 0.04 0.06 0.07 0.10
Net realized and
unrealized gain on
investments, futures
and foreign currency
transactions........... 2.87 3.65 1.51 4.37 2.58 1.13 1.54 2.11 1.07
-------- -------- ------- -------- -------- -------- -------- -------- -------
Total from investment
operations............. 3.11 3.88 1.73 4.41 2.64 1.17 1.60 2.18 1.17
-------- -------- ------- -------- -------- -------- -------- -------- -------
Distributions to
Shareholders from:
Net investment income... (0.25) (0.21) (0.22) (0.04) (0.05) (0.04) (0.06) (0.07) (0.10)
In excess of net
investment income...... -- -- -- (0.02) -- -- -- -- --
Net realized gain on
investments, futures
and foreign currency
transactions........... (1.78) (0.74) (0.03) (2.77) (0.05) -- (1.36) (0.23) --
-------- -------- ------- -------- -------- -------- -------- -------- -------
Total distribution to
shareholders........... (2.03) (0.95) (0.25) (2.83) (0.10) (0.04) (1.42) (0.30) (0.10)
-------- -------- ------- -------- -------- -------- -------- -------- -------
Net Asset Value, End of
Period.................. $ 15.49 $ 14.41 $ 11.48 $ 15.25 $ 13.67 $ 11.13 $ 13.13 $ 12.95 $ 11.07
======== ======== ======= ======== ======== ======== ======== ======== =======
Total Return............. 23.42% 35.28% 17.28%(e) 37.00% 23.83% 11.69%(e) 12.66% 19.88% 11.82%(e)
Ratios to Average Net
Assets/Supplemental
Data:
Net assets, end of
period (in thousands).. $176,587 $117,092 $71,503 $216,129 $160,961 $110,537 $150,527 $113,480 $61,503
Ratio of expenses to
average net assets..... 0.52% 0.63% 0.63%(d) 0.53% 0.55% 0.63%(d) 0.70% 0.78% 0.78%(d)
Ratio of net investment
income to average net
assets................. 1.69% 1.89% 2.55%(d) 0.33% 0.49% 0.46%(d) 0.41% 0.68% 1.33%(d)
Ratio of expenses to
average net assets*.... 0.52% 0.65% 0.68%(d) 0.53% 0.55% 0.68%(d) 0.70% 0.78% 0.90%(d)
Portfolio turnover
rate................... 86.45% 97.39% 92.00%(e) 95.07% 80.47% 80.00%(e) 103.41% 54.16% 38.00%(e)
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced and/or waived. If
such voluntary fee reductions 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.
See accompanying notes to financial statements.
49
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
INTERNATIONAL LIMITED DURATION MUNICIPAL
EQUITY PORTFOLIO BOND PORTFOLIO
----------------------------- ----------------------------
YEAR YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1996(a) 1998 1997 1996(b)
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 12.84 $ 11.26 $ 10.00 $ 10.04 $ 10.00 $ 10.00
-------- -------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income.. 0.16 0.22 0.16 0.47 0.48 0.35
Net realized and
unrealized gain on
investments, futures
and foreign currency
transactions.......... 0.49 1.92 1.35 0.07 0.04 0.01
-------- -------- ------- ------- ------- -------
Total from Investment
Operations............. 0.65 2.14 1.51 0.54 0.52 0.36
-------- -------- ------- ------- ------- -------
Distributions to
Shareholders from:
Net investment income.. (0.47) (0.22) (0.24) (0.47) (0.48) (0.36)
In excess of net
investment income...... -- (0.04) -- -- -- --
Net realized gain on
investments, futures
and foreign currency
transactions.......... (0.32) (0.30) (0.01) -- -- --
-------- -------- ------- ------- ------- -------
Total Distributions to
Shareholders........... (0.79) (0.56) (0.25) (0.47) (0.48) (0.36)
-------- -------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 12.70 $ 12.84 $ 11.26 $ 10.11 $ 10.04 $ 10.00
======== ======== ======= ======= ======= =======
Total Return............ 5.91% 19.61% 15.15%(d) 5.48% 5.34% 3.60%(d)
Ratios to Average Net
Assets/Supplemental
Data:
Net assets, end of
period (in thousands).. $229,875 $146,122 $77,732 $46,677 $40,963 $29,485
Ratio of expenses to
average net assets..... 0.70% 0.78% 0.81%(c) 0.47% 0.52% 0.53%(c)
Ratio of net investment
income to average net
assets................. 2.00% 1.97% 1.75%(c) 4.65% 4.78% 4.78%(c)
Ratio of expenses to
average net assets*.... 0.71% 0.78% 0.92%(c) 0.51% 0.68% 0.81%(c)
Portfolio Turnover
Rate................... 36.80% 29.85% 15.00%(d) 42.50% 44.57% 116.00%(d)
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced and/or waived. If
such voluntary fee reductions 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) Not annualized.
See accompanying notes to financial statements.
50
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF THE HIRTLE CALLAGHAN TRUST
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of the Value Equity,
Growth Equity, Small Capitalization Equity, International Equity and Limited
Duration Municipal Bond Portfolios of the Hirtle Callaghan Trust (the "Trust")
at June 30, 1998, the results of its operations for the year then ended, the
changes in net assets for each of the two years in the period then ended and
the financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at June 30, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
August 7, 1998
51
<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
Drinker Biddle & Reath LLP
Hirtle Callaghan & Co., Inc. Philadelphia National Bank Building
575 East Swedesford Road 1345 Chestnut Street
Wayne, Pennsylvania 19087 Philadelphia, Pennsylvania 19107
ADMINISTRATOR AND DISTRIBUTOR INDEPENDENT ACCOUNTANTS
BISYS Fund Services
3435 Stelzer Road PricewaterhouseCoopers LLP
Columbus, Ohio 43219 2400 Eleven Penn Center
Philadelphia, Pennsylvania 19103
CUSTODIAN
Bankers Trust Company
14 Wall Street
New York, New York 10005
This report is for the information of the shareholders of The Hirtle Callaghan
Trust. Its use in connection with any offering of the Trust's shares is
authorized only in case of a concurrent or prior delivery of the Trust's
current prospectus.
8/98
