<PAGE>
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
THE HIRTLE CALLAGHAN TRUST
December 31, 1997
We are pleased to present the December 31, 1997 semi-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 offers five 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.
The Portfolios currently offered are listed below:
- --------------------------------------------------------------------------------
THE PORTFOLIOS
THE VALUE EQUITY PORTFOLIO, seeks total return by investing in a
--------------------------
diversified portfolio of equity securities of large companies with
relatively low price-earnings ratios and high dividend yields.
THE GROWTH EQUITY PORTFOLIO, seeks capital appreciation by
---------------------------
investing in a diversified portfolio of equity securities of large
and mid-capitalization companies with superior prospects for
earnings growth.
THE SMALL CAPITALIZATION EQUITY PORTFOLIO, seeks capital
-----------------------------------------
appreciation by investing in a diversified portfolio of equity
securities of small-capitalization companies.
THE INTERNATIONAL EQUITY PORTFOLIO, seeks total return by investing
----------------------------------
in a diversified portfolio of equity securities of companies based
in developed countries other than the United States of America.
THE LIMITED DURATION MUNICIPAL BOND PORTFOLIO, seeks current income
---------------------------------------------
exempt from Federal income tax by investing in a diversified
portfolio of relatively short duration municipal notes.
- --------------------------------------------------------------------------------
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS -- 97.28%
HOTCHKIS & WILEY
PORTFOLIO -- 39.02%
AEROSPACE/DEFENSE -- 0.63%
7,000 Northrop Grumman Corp................................. $ 805,000
1,626 Raytheon Co., Cl. A................................... 80,189
------------
885,189
------------
AUTO PARTS -- 0.41%
11,000 Dana Corp............................................. 522,500
2,566 Meritor Automotive.................................... 54,046
------------
576,546
------------
AUTOMOBILE PRODUCTION -- 2.47%
39,200 Ford Motor Co......................................... 1,908,550
25,500 General Motors Corp................................... 1,545,938
------------
3,454,488
------------
BANKING -- 4.15%
25,200 Ahmanson H.F. & Co.................................... 1,686,825
12,000 Comerica Inc.......................................... 1,083,000
6,500 First Chicago Corp.................................... 542,750
13,700 Keycorp............................................... 970,131
12,400 Lincoln National Corp................................. 968,750
18,000 Washington Federal Inc................................ 565,875
------------
5,817,331
------------
CHEMICALS -- 1.20%
10,000 Dow Chemical Co....................................... 1,015,000
10,000 Eastman Chemical Co................................... 595,625
2,950 Millenium Chemicals................................... 69,509
------------
1,680,134
------------
ELECTRONIC COMPONENTS & INSTRUMENTS -- 0.22%
15,000 EG & G Inc............................................ 312,187
------------
ENVIRONMENTAL -- 0.24%
9,106 Browning Ferris Industries............................ 336,922
------------
FINANCIAL SERVICES -- 2.49%
6,500 Beneficial Corp....................................... 540,313
16,500 Fannie Mae............................................ 941,531
22,990 First Union........................................... 1,178,238
4,000 Harleysville Group Inc................................ 96,000
11,400 Washington Mutual..................................... 727,462
------------
3,483,544
------------
FURNITURE/APPLIANCES -- 0.81%
20,700 Whirlpool Corp........................................ 1,138,500
------------
HOLDING COMPANIES --
DIVERSIFIED -- 0.71%
5,162 Energy Group PLC...................................... 230,354
17,500 Fortune Brands Inc.................................... 648,594
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
HOLDING COMPANIES -- DIVERSIFIED (CONTINUED)
5,162 Hanson PLC - ADR...................................... $ 119,049
------------
997,997
------------
HOUSEHOLD PRODUCTS -- 0.40%
20,000 Tupperware Corp....................................... 557,500
------------
INSURANCE -- 3.02%
18,500 American General Corp................................. 1,000,156
8,250 AON Corp.............................................. 483,656
11,400 Ohio Casualty Corp.................................... 508,725
17,000 SAFECO Corp........................................... 828,750
10,000 St. Paul Companies.................................... 820,625
3,400 TIG Holdings Inc...................................... 112,838
4,400 Transamerica Corp..................................... 468,600
------------
4,223,350
------------
MACHINERY & ENGINEERING -- 0.76%
40,100 New Holland NV........................................ 1,060,144
------------
MANUFACTURING -- 0.41%
13,400 Harsco Corp........................................... 577,875
------------
METALS -- 1.43%
12,500 Lukens Inc............................................ 357,031
16,000 Reynolds Metals Co.................................... 960,000
21,900 USX-U.S. Steel Group Inc.............................. 684,375
------------
2,001,406
------------
OIL & GAS -- 4.31%
8,500 Atlantic Richfield Co................................. 681,063
5,000 Equitable Resources Inc............................... 176,875
13,000 National Fuel Gas Co.................................. 632,937
47,300 Occidental Petroleum Corp............................. 1,386,481
27,000 Phillips Petroleum Co................................. 1,312,875
5,300 Sun Inc............................................... 222,931
13,800 Tenneco Inc........................................... 545,100
31,800 USX-Marathon Group.................................... 1,073,250
------------
6,031,512
------------
PAPER PRODUCTS -- 2.39%
6,000 Georgia Pacific Corp.................................. 364,500
6,000 Georgia Pacific Timber Co.*........................... 136,125
21,100 International Paper Co................................ 909,938
11,000 Union Camp Corp....................................... 590,562
27,500 Weyerhaeuser Co....................................... 1,349,219
------------
3,350,344
------------
PHARMACEUTICALS -- 0.21%
8,000 Pharmacia & Upjohn Inc................................ 293,000
------------
POLLUTION CONTROL -- 0.66%
33,500 Waste Management...................................... 921,250
------------
RAILROADS -- 0.31%
8,000 CSX Corp.............................................. 432,000
------------
</TABLE>
See accompanying notes to financial statements.
1
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RAW MATERIALS -- 0.91%
11,200 Aluminum Co. of America.............................. $ 788,200
15,100 Ultramar Diamond Shamrock Corp....................... 481,313
------------
1,269,513
------------
RETAIL -- 2.00%
12,500 Intimate Brands Inc.................................. 300,781
10,800 May Department Stores Inc............................ 569,025
14,800 Penney (J.C.) Co..................................... 892,625
23,100 Sears Roebuck & Co................................... 1,045,275
------------
2,807,706
------------
TECHNOLOGY -- 0.29%
7,700 Rockwell International Corp.......................... 402,325
------------
TELECOMMUNICATIONS -- 2.78%
16,000 Alltel Corp.......................................... 657,000
31,500 AT&T Corp............................................ 1,929,375
6,681 Bell Atlantic........................................ 608,008
9,508 SBC Communications Inc............................... 696,461
------------
3,890,844
------------
TEXTILES -- 0.34%
17,700 Russell Corp......................................... 470,156
------------
TOBACCO -- 0.99%
30,500 Philip Morris........................................ 1,382,031
------------
TRANSPORTATION -- 0.87%
14,700 Norfolk Southern..................................... 452,944
23,500 Ryder System Inc..................................... 769,625
------------
1,222,569
------------
UTILITIES -- 3.63%
17,300 CMS Energy Corp...................................... 762,281
24,500 Central & South West Corp............................ 663,031
40,000 Edison International................................. 1,087,500
27,000 Illinova Corp........................................ 727,313
11,100 MCN Corp............................................. 448,163
12,000 New York State Gas & Electric........................ 426,000
22,000 PECO Energy Co....................................... 533,500
2,000 Piedmont Natural Gas Co.............................. 71,875
12,000 Scana Corp........................................... 359,250
------------
5,078,913
------------
TOTAL -- HOTCHKIS & WILEY PORTFOLIO
(COST $42,113,972).................................. 54,655,276
------------
INSTITUTIONAL CAPITAL MANAGEMENT CORP. PORTFOLIO --
58.26%
AEROSPACE/DEFENSE -- 5.81%
44,000 Boeing Co............................................ 2,153,250
15,700 Goodrich (B.F.) Co................................... 650,569
23,350 Northrop Grumman Corp................................ 2,685,250
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
AEROSPACE/DEFENSE (CONTINUED)
3,409 Raytheon Co., Cl. A................................... $ 168,082
49,250 Raytheon Co., Cl. B................................... 2,487,125
------------
8,144,276
------------
AIRLINES & SERVICES -- 1.86%
6,000 AMR Corp.*............................................ 771,000
79,670 Peninsular & Oriental SP - ADR........................ 1,832,410
------------
2,603,410
------------
AUTOMOBILE PRODUCTION -- 2.31%
53,450 General Motors Corp................................... 3,240,406
------------
BANKING -- 2.38%
18,650 Banc One Corp......................................... 1,012,928
6,850 Wells Fargo & Co...................................... 2,325,147
------------
3,338,075
------------
BEVERAGES -- 1.15%
51,050 Diageo PLC - ADR...................................... 1,933,519
------------
CHEMICALS -- 4.63%
18,250 Akzo Nobel - ADR...................................... 1,585,469
46,200 DuPont E.I. DeNemours & Co............................ 2,774,887
60,500 Hoechst AG - ADR...................................... 2,121,281
------------
6,481,637
------------
COMPUTER SOFTWARE &
SERVICES -- 0.65%
30,900 First Data Corp....................................... 903,825
------------
COMPUTER SYSTEMS -- 1.64%
22,000 International Business Machines Corp.................. 2,300,375
------------
ELECTRONIC COMPONENTS & INSTRUMENTS -- 2.43%
21,200 LSI Logic*............................................ 418,700
49,450 Philips Electronics NV................................ 2,991,725
------------
3,410,425
------------
ENTERTAINMENT -- 3.10%
80,750 Host Marriott Corp.*.................................. 1,584,719
139,000 News Corp. Ltd........................................ 2,762,625
------------
4,347,344
------------
FERTILIZERS -- 0.66%
28,400 IMC Global Inc........................................ 930,100
------------
FOOD PROCESSING -- 1.05%
68,100 Archer Daniels-Midland Co............................. 1,476,919
------------
FINANCIAL SERVICES -- 3.99%
21,400 Citicorp.............................................. 2,705,762
47,450 Nation's Bank......................................... 2,885,552
------------
5,591,314
------------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
HEALTH CARE -- 1.21%
3,200 Baxter International................................. $ 161,400
46,200 Tenet Healthcare Corp.*.............................. 1,530,375
------------
1,691,775
------------
INSURANCE -- 2.11%
27,800 Loews Corp........................................... 2,950,275
------------
METALS -- 1.26%
29,500 Reynolds Metals Co................................... 1,770,000
------------
NON-DEFENSE, CAPITAL
SPENDING -- 1.38%
66,200 Agco Corp............................................ 1,936,350
------------
OIL & GAS -- 2.51%
14,900 Ashland Inc.......................................... 799,944
24,340 Elf Aquitaine - ADR.................................. 1,426,932
52,900 Union Pacific Resources Group........................ 1,282,825
------------
3,509,701
------------
PHARMACEUTICALS -- 3.74%
39,200 American Home Products Corp.......................... 2,998,800
50,323 Rhone-Poulenc SA - ADR............................... 2,233,083
------------
5,231,883
------------
PUBLISHING & PRINTING -- 3.41%
18,000 Boise Cascade Co..................................... 544,500
64,850 Dun & Bradstreet Corp................................ 2,006,297
77,200 U.S. West Media Group*............................... 2,229,150
------------
4,779,947
------------
RETAIL -- 2.84%
39,500 Federated Department Stores, Inc.*................... 1,700,969
58,600 Unocal............................................... 2,274,412
------------
3,975,381
------------
TELECOMMUNICATIONS -- 1.38%
33,950 Motorola Inc......................................... 1,937,273
------------
TOBACCO -- 2.36%
73,000 Phillip Morris....................................... 3,307,813
------------
TOYS -- 1.08%
47,950 Hasbro Inc........................................... 1,510,425
------------
TRANSPORTATION -- 3.08%
21,600 Burlington Northern Santa Fe Corp.................... 2,007,450
84,700 Canadian Pacific, Ltd................................ 2,308,075
------------
4,315,525
------------
TOTAL -- INSTITUTIONAL CAPITAL MANAGEMENT CORP.
PORTFOLIO (COST $75,241,185)........................ 81,617,973
------------
TOTAL COMMON STOCKS (COST $117,355,157).............. 136,273,249
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
SHORT-TERM INVESTMENTS -- 1.72%
HOTCHKIS & WILEY PORTFOLIO -- 0.79%
1,112,787 American Express, Commercial Paper, 5.63%, due
1/5/98.............................................. $ 1,112,787
------------
TOTAL -- HOTCHKIS & WILEY PORTFOLIO (COST
$1,112,787)......................................... 1,112,787
------------
INSTITUTIONAL CAPITAL MANAGEMENT CORP. PORTFOLIO --
0.93%
1,300,000 Xerox Corp., Commercial Paper, 6.50%,1/2/98.......... 1,299,765
------------
TOTAL -- INSTITUTIONAL CAPITAL MANAGEMENT CORP.
PORTFOLIO
(COST $1,299,765)................................... 1,299,765
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $4,112,545)................................... 2,412,552
------------
TOTAL INVESTMENTS (COST $119,767,710) (A) -- 99.00%.. 138,685,801
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.00%................................ 1,402,719
------------
NET ASSETS -- 100.00%................................ $140,088,520
============
</TABLE>
- --------
* Represents non-income producing security
ADR--American Depositary Receipt
PLC--Public Limited Company
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $21,578,366
Unrealized depreciation.......................................... (2,660,275)
-----------
Net unrealized appreciation...................................... $18,918,091
===========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
COMMON STOCKS -- 98.13%
JENNISON ASSOCIATES LLP
PORTFOLIO -- 64.53%
ADVERTISING -- 0.95%
36,900 Catalina Marketing Corp.*......................... $ 1,706,625
------------
AEROSPACE/DEFENSE -- 0.95%
35,000 Boeing Co......................................... 1,712,812
------------
BANKS -- 4.51%
34,800 Chase Manhattan Corp.............................. 3,810,600
11,000 Citicorp.......................................... 1,390,813
12,200 Fleet Financial Group Inc......................... 914,237
106,500 Hibernia Corp., Cl. A............................. 2,003,531
------------
8,119,181
------------
BUSINESS EQUIPMENT &
SERVICES -- 4.44%
22,300 Federal Express Corp.*............................ 1,892,938
40,300 Gartner Group Inc.*............................... 1,501,175
27,700 Manpower Inc...................................... 976,425
46,600 Omnicom Group Inc................................. 1,974,675
25,100 Reuters Holding PLC - ADR......................... 1,662,875
------------
8,008,088
------------
CHEMICALS -- 1.31%
56,000 Monsanto.......................................... 2,352,000
------------
COMMERCIAL SERVICES -- 1.38%
72,300 Cendant Corp.*.................................... 2,485,313
------------
COMPUTER EQUIPMENT -- 2.98%
24,400 Dell Computer Corp.*.............................. 2,049,600
15,200 Microsoft Corp.*.................................. 1,964,600
36,100 Symbol Technologies Inc........................... 1,362,775
------------
5,376,975
------------
COMPUTER SOFTWARE -- 2.25%
32,100 Compuware Corp.*.................................. 1,027,200
28,900 Intuit*........................................... 1,192,125
64,900 Platinum Technology Inc.*......................... 1,833,425
------------
4,052,750
------------
ELECTRONIC COMPONENTS & INSTRUMENTS -- 4.05%
49,700 Applied Materials Inc.*........................... 1,497,213
22,900 Intel Corp........................................ 1,608,725
56,500 International Rectifier Corp.*.................... 667,406
29,500 KLA Instruments Corp.*............................ 1,139,437
30,400 Texas Instruments................................. 1,368,000
29,000 Xilinx*........................................... 1,016,813
------------
7,297,594
------------
FINANCIAL SERVICES -- 3.05%
26,950 MBNA Corp......................................... 1,710,445
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
FINANCIAL SERVICES (CONTINUED)
37,750 Morgan Stanley - Dean Witter Discover............. $ 2,285,181
25,500 Schwab (Charles) Corp............................. 1,507,653
------------
5,503,279
------------
FOOD -- 0.70%
27,700 Dole Food Company................................. 1,267,275
------------
HEALTH CARE -- 1.00%
65,000 Healthsouth Corp.*................................ 1,803,750
------------
HOUSEHOLD PRODUCTS & PERSONAL CARE -- 0.91%
28,700 Gillette Co....................................... 1,637,131
------------
INSURANCE -- 2.35%
12,700 Ace Limited....................................... 1,225,550
10,100 MGIC Investment Corp.............................. 671,650
43,100 Unum Corp......................................... 2,343,563
------------
4,240,763
------------
LODGING -- 2.94%
72,200 Hilton Hotels Corp................................ 2,147,950
44,600 Interstate Hotels Co.*............................ 1,563,788
37,832 Promus Hotel Corp.*............................... 1,588,944
------------
5,300,682
------------
MACHINERY & EQUIPMENT -- 0.92%
27,500 Case Corp......................................... 1,662,031
------------
MEDIA -- 1.15%
21,000 The Walt Disney Co................................ 2,080,313
------------
MEDICAL EQUIPMENT &
SUPPLIES -- 0.59%
23,100 Boston Scientific Corp.*.......................... 1,059,712
------------
MISCELLANEOUS/DIVERSIFIED -- 2.28%
39,500 Diebold Inc....................................... 1,999,688
28,700 General Electric Company.......................... 2,105,862
------------
4,105,550
------------
NETWORKING -- 1.90%
43,850 Cisco Systems Inc.*............................... 2,444,638
27,800 3 Com Corp.*...................................... 971,262
------------
3,415,900
------------
OIL SERVICES -- 1.83%
23,100 Schlumberger Ltd.................................. 1,859,550
32,800 Baker Hughes...................................... 1,430,900
------------
3,290,450
------------
OIL & GAS -- 0.83%
27,100 Amerada Hess Corp................................. 1,487,113
------------
1,487,113
------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
JENNISON ASSOCIATES LLP
PORTFOLIO (CONTINUED)
PHARMACEUTICALS -- 6.82%
23,500 Bristol-Myers Squibb.............................. $ 2,223,688
27,500 Eli Lilly & Co.*.................................. 1,914,687
58,100 Pfizer, Inc....................................... 4,332,081
48,800 Smithkline Beecham PLC - ADR...................... 2,510,150
10,600 Warner Lambert Company............................ 1,314,400
------------
12,295,006
------------
RETAIL -- 5.09%
60,100 Autozone Inc.*.................................... 1,742,900
44,376 Dollar General Corp............................... 1,608,630
39,300 Gap Inc........................................... 1,392,694
17,100 Home Depot........................................ 1,006,762
23,900 Kohl's Corp.*..................................... 1,628,188
39,500 Sears, Roebuck & Co............................... 1,787,375
------------
9,166,549
------------
SAVINGS & LOAN -- 1.43%
28,700 Washington Mutual, Inc.*.......................... 2,578,025
------------
TECHNOLOGY -- 3.80%
46,400 Compaq Computer Corp.*............................ 2,618,700
43,700 Hewlett Packard Co................................ 2,731,250
14,300 International Business Machines Corp.............. 1,495,244
------------
6,845,194
------------
TELECOMMUNICATIONS -- 4.13%
36,000 Airtouch Communications*.......................... 1,496,250
28,900 Motorola Inc...................................... 1,649,106
23,400 Nokia Corp. - ADR................................. 1,400,000
23,000 Tellabs, Inc.*.................................... 1,538,662
16,400 Vodafone Group PLC - ADR.......................... 1,363,000
------------
7,447,018
------------
TOTAL -- JENNISON ASSOCIATES LLP PORTFOLIO
(COST $92,777,282)............................... 116,297,079
------------
GOLDMAN SACHS ASSET MANAGEMENT
PORTFOLIO -- 33.60%
AIRLINES -- 0.31%
4,300 AMR Corp.*........................................ 552,550
------------
ALCOHOL -- 0.14%
7,600 Coors Adolph Co................................... 252,700
------------
APPAREL -- 0.14%
5,900 Jones Apparel Group*.............................. 253,700
------------
BANKING -- 1.03%
9,200 Bankamerica Corp.................................. 671,600
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
BUSINESS EQUIPMENT &
SERVICES -- 0.19%
5,700 Federal Express Corp.*............................ $ 348,056
------------
CHEMICALS -- 0.86%
5,700 Aptargroup Inc.................................... 316,350
8,500 Dow Chemical Co................................... 862,750
19,300 Wellman........................................... 376,350
------------
1,555,450
------------
CLOTHING -- 0.73%
15,300 Intimate Brands Inc............................... 368,156
7,700 Nordstrom Inc..................................... 464,888
14,200 TJX Companies Inc................................. 488,125
------------
1,321,169
------------
COMPUTER HARDWARE -- 1.62%
18,300 Compaq Computer Corp.............................. 1,032,806
19,600 EMC Corp.*........................................ 537,775
9,700 Ingram Micro Inc.*................................ 282,513
16,300 Sun MIcrosystems*................................. 649,962
10,500 Tech Data*........................................ 408,188
------------
2,911,244
------------
COMPUTER SOFTWARE -- 1.33%
7,700 Compuware Corp.*.................................. 246,400
16,700 Microsoft*........................................ 2,158,475
------------
2,404,875
------------
CONSTRUCTION -- 0.39%
8,700 Centex Corp....................................... 547,556
2,500 Georgia Pacific Corp.............................. 151,875
------------
699,431
------------
DEPARTMENT STORES -- 1.59%
18,500 Dayton Hudson..................................... 1,248,750
20,900 Federated Department Stores*...................... 900,006
10,500 Kohls Corp.*...................................... 715,313
------------
2,864,069
------------
DRUGS -- 3.84%
4,400 Cardinal Health Inc............................... 330,550
13,000 Bergen Bruswig Corp............................... 547,625
6,600 Bristol Myers Squibb Co........................... 624,525
11,400 Eli Lilly & Co.................................... 793,725
20,500 Merck & Company Inc............................... 2,178,125
6,400 Pfizer............................................ 477,200
11,741 Pharmerica Inc.*.................................. 121,813
14,700 Schering Plough................................... 913,237
7,500 Warner Lambert Co................................. 930,000
------------
6,916,800
------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
-------- ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
GOLDMAN SACHS ASSET MANAGEMENT
PORTFOLIO (CONTINUED)
ELECTRONIC EQUIPMENT -- 0.67%
8,900 Lucent Technologies Corp........................... $ 710,888
11,400 Raychem Corp....................................... 490,912
------------
1,201,800
------------
ELECTRIC UTILITY -- 0.76%
31,200 Hanson PLC - ADR................................... 719,550
18,100 New York State Electric & Gas...................... 642,550
------------
1,362,100
------------
ENTERTAINMENT -- 0.53%
9,600 The Walt Disney Co................................. 951,000
------------
FINANCIAL SERVICES -- 2.21%
6,000 American Express Co................................ 535,500
7,600 Federal National Mortgage Association.............. 433,675
6,600 Ford Motor Co...................................... 321,337
28,200 General Electric Co................................ 2,069,175
4,500 SLM Holding Corp................................... 626,062
------------
3,985,749
------------
FOOD AND BEVERAGES -- 1.18%
20,300 Archer Daniels-Midland Company..................... 440,256
25,400 Coca Cola Co....................................... 1,692,275
------------
2,132,531
------------
FOREST PRODUCTS & PAPERS -- 0.20%
6,800 Champion International Co.......................... 308,125
2,500 Georgia Pacific Timber Co.*........................ 56,719
------------
364,844
------------
GAS/UTILITIES -- 0.21%
4,800 Columbia Gas....................................... 377,100
------------
GROCERY -- 0.60%
29,100 Kroger Co.*........................................ 1,074,881
------------
HEAVY MACHINERY -- 0.65%
5,500 Case Corp.......................................... 332,406
6,000 Cummins Engine Inc................................. 354,375
4,500 NACCO Industries Inc............................... 482,344
------------
1,169,125
------------
HOME PRODUCTS -- 1.28%
12,300 Fortune Brands Inc................................. 455,869
10,600 Premark International.............................. 307,400
19,400 Procter & Gamble Co................................ 1,548,362
------------
2,311,631
------------
INDUSTRIAL PARTS -- 0.94%
13,400 Coltec Industries*................................. 310,713
39,100 New Holland........................................ 1,033,706
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
INDUSTRIAL PARTS (CONTINUED)
4,800 United Technologies Corp.......................... $ 349,500
------------
1,693,919
------------
INDUSTRIAL SERVICES -- 0.35%
15,600 Hertz Corp........................................ 627,900
------------
INFORMATION SERVICES -- 0.32%
15,700 Valassis Communications*.......................... 580,900
------------
MEDIA -- 0.48%
15,500 Belo (A.H.) Corp.................................. 869,938
------------
MEDICAL PRODUCTS -- 1.19%
9,500 Allegiance Corp................................... 336,656
11,700 Dexter Corp....................................... 505,294
14,900 Johnson & Johnson................................. 981,537
7,100 Tyco International................................ 319,944
------------
2,143,431
------------
MEDICAL PROVIDER -- 1.66%
25,800 Beverly Enterprises Inc.*......................... 335,400
17,013 Healthsouth Corp.*................................ 472,111
27,300 Nova Care*........................................ 356,606
11,900 Quest Diagnostics*................................ 200,813
25,200 Tenet Healthcare Corp.*........................... 834,750
8,200 Universal Health Services*........................ 413,075
8,900 Wellpoint Health Network*......................... 376,025
------------
2,988,780
------------
MINING -- 0.17%
17,000 AK Steel Holding Corp............................. 300,688
------------
OIL -- REFINERIES -- 0.43%
12,500 Shell Transport and Trade......................... 546,875
4,900 Sun Company Inc................................... 206,106
500 Valero Energy..................................... 15,719
------------
768,700
------------
OIL SERVICES -- 0.71%
4,400 BJ Services*...................................... 316,525
4,800 Helmerich & Payne Inc............................. 325,800
6,500 Nabors Industries Inc.*........................... 204,344
5,300 Schlumberger Ltd.................................. 426,650
------------
1,273,319
------------
PROPERTY INSURANCE -- 2.28%
15,000 American International Group...................... 1,631,250
22,700 Old Republic International Corp................... 844,156
30,211 Travelers Group Inc............................... 1,627,618
------------
4,103,024
------------
RETAIL -- SPECIALTY -- 0.27%
13,400 Best Buy*......................................... 494,125
------------
SECURITIES -- ASSETS -- 1.76%
14,800 Equitable Companies Inc........................... 736,300
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
GOLDMAN SACHS ASSET MANAGEMENT
PORTFOLIO (CONTINUED)
SECURITIES -- ASSETS (CONTINUED)
7,100 Lehman Borthers Holdings Inc..................... $ 362,100
13,000 Merrill Lynch.................................... 948,188
19,000 Morgan Stanley - Dean Witter Discover............ 1,123,375
------------
3,169,963
------------
SEMICONDUCTORS -- 1.48%
6,800 Applied Materials Inc.*.......................... 204,850
6,500 Dallas Semiconductors............................ 264,875
23,400 Intel Corp....................................... 1,643,850
9,200 National Semiconductor*.......................... 238,625
7,000 Texas Industries................................. 315,000
------------
2,667,200
------------
TELEPHONE -- 0.35%
20,800 Worldcom Inc.*................................... 629,200
------------
TOBACCO -- 1.20%
32,200 Philip Morris Inc................................ 1,459,062
17,300 Universal Corp................................... 711,462
------------
2,170,524
------------
WIRELESS -- 0.22%
9,600 Airtouch Communications*......................... 399,000
------------
TOTAL -- GOLDMAN SACHS ASSET MANAGEMENT PORTFOLIO
(COST $58,903,856).............................. 60,563,016
------------
TOTAL -- COMMON STOCKS
(COST $151,681,138)............................. 176,860,095
------------
SHORT-TERM INVESTMENTS -- 1.76%
JENNISON ASSOCIATES LLP
PORTFOLIO -- 1.98%
2,750,000 General Electric Capital., Commercial Paper,
5.65%, 1/2/98................................... 3,575,000
------------
TOTAL -- JENNISON ASSOCIATES LLP PORTFOLIO (COST
$3,575,000)..................................... 3,575,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
GOLDMAN SACHS ASSET MANAGEMENT PORTFOLIO -- 0.05%
397,000 Bankers Trust, Repurchase Agreement, 4.95%, 1/2/98
(Collateralized by $366,000 U.S. Treasury Notes,
8.75%, 8/15/00; market value $404,773)............. $ 397,000
------------
TOTAL -- GOLDMAN SACHS ASSET MANAGEMENT PORTFOLIO
(COST $397,000).................................... 397,000
------------
TOTAL -- SHORT-TERM INVESTMENTS (COST $3,972,000)... 3,972,000
------------
TOTAL -- INVESTMENTS (COST $155,653,139) (A) --
100.33%........................................... 180,832,095
------------
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES --
(0.33%)........................................... (600,234)
------------
NET ASSETS -- 100.00%............................... $180,231,861
============
</TABLE>
- --------
* Represents non-income producing security
ADR--American Depositary Receipt
PLC--Public Limited Company
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $31,496,099
Unrealized depreciation.......................................... (6,317,143)
-----------
Net unrealized appreciation...................................... $25,178,956
===========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------- ----------- ------------
<C> <S> <C>
COMMON STOCKS -- 92.91%
CLOVER CAPITAL MANAGEMENT
PORTFOLIO -- 43.99%
ADVERTISING -- 1.09%
75,000 Advo Inc.*.............................................. $ 1,462,500
------------
AUTO RELATED -- 2.17%
40,000 Echlin Inc.............................................. 1,447,500
82,400 Monro Muffler Brake Inc.*............................... 1,184,500
30,000 TBC Corp.*.............................................. 286,875
------------
2,918,875
------------
BROADCASTING & PUBLISHING -- 2.19%
110,000 Comcast UK Cable Partners,
Limited - A*........................................... 1,038,125
50,000 Comcast Corp., Cl. A.................................... 1,912,500
------------
2,950,625
------------
BUSINESS EQUIPMENT &
SERVICES -- 0.50%
45,000 Komag Inc.*............................................. 669,374
------------
CHEMICALS -- 2.79%
50,000 Agrium Inc.............................................. 609,375
23,800 Bush Boake Allen Inc.*.................................. 623,263
80,000 Hanna M.A. Co........................................... 2,020,000
17,200 Stepan Co............................................... 509,550
------------
3,762,188
------------
COMPUTER SOFTWARE -- 1.39%
45,000 Marcam Corp.*........................................... 326,250
45,000 Sungard Data Systems, Inc.*............................. 1,550,000
------------
1,876,250
------------
CONSUMER NON-DURABLE -- 1.28%
60,000 Department 56 Inc.*..................................... 1,725,000
------------
ELECTRONIC COMPONENTS &
INSTRUMENTS -- 2.40%
20,000 Avnet Inc............................................... 1,320,000
45,000 Harman International Industries Inc..................... 1,909,688
------------
3,229,688
------------
ENTERTAINMENT -- 0.60%
14,000 King World Productions Inc.*............................ 808,500
------------
FOOD -- 1.38%
30,000 Nasch-Finch Co.......................................... 570,000
350,000 United Biscuits Holdings - ADR.......................... 1,288,000
------------
1,858,000
------------
HOSPITAL MANAGEMENT &
SERVICES -- 2.81%
160,000 Medpartners Inc.*....................................... 3,580,000
48,000 Physicians Resource Group*.............................. 210,000
------------
3,790,000
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------- ----------- ------------
<C> <S> <C>
INSURANCE -- 3.81%
60,000 Acceptance Insurance Co.*............................... $ 1,451,250
11,000 Delphi Financial Group*................................. 495,000
29,700 Fidelity National Financial............................. 924,413
30,000 Liberty Financial Companies............................. 1,132,500
19,000 LaSalle Re Holdings..................................... 672,125
10,000 Partnerre Ltd........................................... 463,750
------------
5,139,038
------------
LEISURE & RECREATION -- 0.35%
21,000 K2 Inc.................................................. 477,750
------------
MACHINERY & ENGINEERING -- 1.45%
42,000 AGCO Corp............................................... 1,228,500
15,000 Tecumseh Products Co.................................... 731,250
------------
1,959,750
------------
MANUFACTURING -- 2.61%
80,000 Fedders Corp............................................ 500,000
31,200 Huffy Corp.............................................. 421,200
12,500 Lawson Products......................................... 371,875
70,000 Myers Industries Inc.................................... 1,194,375
50,000 Pall Corp............................................... 1,034,375
------------
3,521,825
------------
MEDICAL EQUIPMENT & SUPPLIES -- 0.77%
225,000 Oncor*.................................................. 1,040,625
------------
OIL & GAS -- 3.19%
25,500 Eastern Enterprises..................................... 1,147,500
27,000 Lomak Petroleum......................................... 438,750
55,000 Oil-Dri Corp............................................ 907,500
16,800 RPC Energy Services Inc,................................ 198,450
37,000 Tesoro Petroleum Corp.*................................. 573,500
50,000 Union Texas Petroleum Holdings Inc...................... 1,040,625
------------
4,306,325
------------
PAPER PRODUCTS -- 0.82%
18,000 Chesapeake Corp......................................... 618,750
24,000 Rock Tenn Co............................................ 492,000
------------
1,110,750
------------
PUBLISHING & PRINTING -- 0.46%
16,000 American Greetings Corp., Cl. A......................... 626,000
------------
REAL ESTATE -- 2.62%
30,092 Chateau Communities Inc................................. 947,898
33,000 Manufactured Home Communities Inc....................... 891,000
10,213 Meditrust Corp.......................................... 374,051
50,000 Storage Trust Realty.................................... 1,315,625
------------
3,528,574
------------
RESTAURANTS -- 0.20%
75,000 Roadhouse Grill Inc.*................................... 262,500
------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RETAIL -- 1.62%
50,000 Cash America International Inc......................... $ 646,875
119,000 Jacobson Stores*....................................... 1,532,125
------------
2,179,000
------------
TECHNOLOGY -- 2.17%
160,000 Mapics Inc.*........................................... 1,740,000
16,000 Mineral Technologies Inc............................... 727,000
50,000 Trident Microsystems Inc.*............................. 453,125
------------
2,920,125
------------
TELECOMMUNICATIONS -- 3.29%
31,772 Ascent Entertainment Group*............................ 329,635
60,000 Comsat Corp............................................ 1,455,000
100,000 Frontier Corp.......................................... 2,646,875
------------
4,431,510
------------
TRANSPORTATION-SHIPPING -- 2.06%
94,500 American Freightways*.................................. 933,188
27,000 Avondale Industries Inc.*.............................. 801,562
25,000 Old Dominion Freight Line Inc.*........................ 381,250
25,000 Pittston Burlington Group.............................. 656,250
------------
2,772,250
------------
TOTAL -- CLOVER CAPITAL MANAGEMENT PORTFOLIO (COST
$51,173,405).......................................... 59,327,022
------------
FRONTIER CAPITAL MANAGEMENT PORTFOLIO -- 48.92%
AEROSPACE -- 0.52%
23,700 Orbital Sciences Corp.*................................ 705,075
------------
BROADCASTING/CABLE -- 0.46%
17,300 General Cable.......................................... 626,044
------------
BUILDING MATERIALS &
COMPONENTS -- 1.17%
64,600 Diamond Home Services*................................. 460,275
32,100 Elcor Corp............................................. 770,400
38,100 Perini Corp.*.......................................... 342,900
------------
1,573,575
------------
BUSINESS EQUIPMENT &
SERVICES -- 0.43%
8,800 Black Box Corp.*....................................... 311,300
9,700 Virco Manufacturing Co................................. 271,600
------------
582,900
------------
CHEMICALS -- 1.05%
16,500 Brunswick Technologies Inc.*........................... 241,313
38,700 Hexcel Corp.*.......................................... 965,081
13,700 Spartech Corp.......................................... 207,212
------------
1,413,606
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------- ----------- ------------
<C> <S> <C>
COMMERCIAL SERVICES -- 0.83%
26,800 Central Sprinkler Corp.*................................ $ 494,125
4,200 Fine Host Corp.*........................................ 42,525
7,100 Lason Inc.*............................................. 189,038
23,500 Market Facts Inc.*...................................... 393,625
------------
1,119,313
------------
COMPUTER EQUIPMENT -- 3.68%
15,300 Computer Products Inc.*................................. 346,163
17,000 Kronos Inc.*............................................ 523,812
59,100 Learning Company Inc.*.................................. 949,294
63,600 Optika Imaging Systems Inc*............................. 218,625
30,500 Sandisk Corp.*.......................................... 619,531
9,668 Seagate Technology Inc.*................................ 186,109
38,800 State of The Art Inc.*.................................. 630,500
102,300 ISG International Software Group*....................... 1,483,350
------------
4,957,384
------------
COMPUTER SOFTWARE -- 3.57%
9,200 Activision Inc.*........................................ 164,450
7,000 Dataworks Corp.*........................................ 139,125
34,800 Evans & Suther Computer Corp.*.......................... 1,009,200
8,000 Filenet Corp.*.......................................... 241,000
17,000 Information Resources*.................................. 227,375
31,300 Level 8 Systems Inc.*................................... 426,463
14,292 Network Associates*..................................... 755,689
3,600 Project Software*....................................... 84,600
16,700 Read Rite *............................................. 263,025
17,600 Tecnomatix Technologies Inc.*........................... 594,000
49,400 UBICS Inc.*............................................. 741,000
12,200 Wonderware Corp.*....................................... 172,325
------------
4,818,252
------------
ELECTRICAL & ELECTRONICS -- 2.85%
42,200 Cirrus Logic Inc.*...................................... 448,375
24,300 Cypress Semiconductors*................................. 206,550
6,000 Encore Wire Corp.*...................................... 184,125
10,400 Harman International Industries Inc..................... 441,350
16,600 Hypercom Corp.*......................................... 234,475
27,600 LSI Logic*.............................................. 545,100
9,300 Oak Industries Inc.*.................................... 276,094
15,300 Rogers Corp.*........................................... 625,387
40,300 Trimble Navigation Ltd.*................................ 879,044
------------
3,840,500
------------
ELECTRONIC COMPONENTS &
INSTRUMENTS -- 3.82%
11,100 Atmel Corp.*............................................ 206,044
23,200 DII Group Inc.*......................................... 632,200
14,900 Exar Corp.*............................................. 245,850
14,600 General Scanning Inc.*.................................. 251,850
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ELECTRONIC COMPONENTS & INSTRUMENTS (CONTINUED)
18,700 Harmon Industries Inc.................................... $ 518,925
13,900 Lattice Semiconductor Corp.*............................. 658,512
14,400 Maxim Integrated Products Inc.*.......................... 496,800
80,700 Mentor Graphics Corp.*................................... 781,781
7,800 Power-One Inc.*.......................................... 107,250
35,100 Semiconductor Packaging Materials*....................... 265,444
20,500 Speedfam International Inc.*............................. 543,250
18,500 VLSI Technology Inc.*.................................... 437,063
------------
5,144,969
------------
ENGINEERING & CONSTRUCTION -- 1.06%
88,600 Insituform Technologies Cl. A*........................... 686,650
10,000 J Ray McDermott SA*...................................... 430,000
6,700 Stone & Webster Inc...................................... 314,063
------------
1,430,713
------------
FINANCIAL SERVICES -- 0.08%
5,500 Redwood Trust Inc........................................ 112,063
------------
FOREST PRODUCTS & PAPERS -- 0.55%
39,000 Louisiana-Pacific Corp................................... 741,000
------------
HEALTH CARE -- 0.69%
42,900 Apple Orthodontix Inc.*.................................. 509,438
3,300 Lincare Holdings*........................................ 188,100
21,000 Nextstar Pharmaceuticals Inc.*........................... 238,875
------------
936,413
------------
INSURANCE -- 1.44%
12,700 Conseco Inc.............................................. 577,056
17,000 Coventry Corp.*.......................................... 259,250
31,400 John Alden Financial Corp................................ 753,600
16,900 Penn-America Group Inc................................... 346,450
------------
1,936,356
------------
LEISURE & TOURISM -- 1.05%
39,800 American Coin Merchandising*............................. 701,475
18,200 American Skiing Corp.*................................... 270,725
17,400 International Game Technology............................ 439,350
------------
1,411,550
------------
MACHINERY & ENGINEERING -- 0.23%
31,000 Brown & Sharpe Manufacturing Co.*........................ 315,813
------------
MANUFACTURING -- 2.37%
30,100 Data General*............................................ 524,869
17,300 Lesco Inc................................................ 361,137
38,800 Nanophase Tech Corp.*.................................... 492,275
50,550 Paxar Corp.*............................................. 748,772
27,300 Wesley Jessen Visioncare Inc.*........................... 1,064,700
------------
3,191,753
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------- ----------- ------------
<C> <S> <C>
MEDICAL -- BIOTECHNOLOGY -- 0.79%
103,800 Celgene*................................................ $ 875,813
30,600 Neoprobe Corp.*......................................... 183,600
------------
1,059,413
------------
MEDICAL SUPPLIES -- 0.99%
62,700 CNS Inc.*............................................... 419,306
25,800 Merit Medical Systems Inc.*............................. 161,250
29,900 Uroquest Medical Corp.*................................. 78,488
31,000 Visx Inc.*.............................................. 685,875
------------
1,344,919
------------
MEDICAL -- HOSPITAL MANAGEMENT & SERVICES -- 0.60%
35,800 American Service Group*................................. 539,238
10,500 United Wisconsin Services Inc........................... 270,375
------------
809,613
------------
OIL & GAS -- 2.37%
18,400 Carbo Ceramics Inc...................................... 588,800
79,000 Coho Energy Inc.*....................................... 720,875
22,400 KCS Energy Inc.......................................... 464,800
19,500 Noble Drilling Corp.*................................... 597,188
17,064 Louis Dreyfus Natural Gas*.............................. 318,883
7,300 Vastar Resources........................................ 260,975
17,200 Wiser Oil Co............................................ 242,950
------------
3,194,471
------------
PACKAGING/CONTAINER -- 0.43%
34,000 U.S. Can Corp.*......................................... 573,750
------------
PAPER PRODUCTS -- 0.28%
11,800 Willamette Industries Inc............................... 379,813
------------
PHARMACEUTICALS -- 1.20%
31,000 Anesta Corp.*........................................... 378,262
80,000 Cellegy Pharmaceuticals*................................ 670,000
49,500 Dusa Pharmaceutical Inc.*............................... 569,250
------------
1,617,512
------------
PUBLISHING & PRINTING -- 0.88%
19,150 Mail-Well Inc.*......................................... 775,575
20,500 Scientific Games Holdings Corp.*........................ 415,125
------------
1,190,700
------------
REAL ESTATE -- 2.19%
15,100 Boston Properties Inc................................... 499,244
55,400 Commercial Real Estate Services*........................ 1,783,188
6,700 LaSalle Partners Inc.*.................................. 238,687
30,500 Prime Retail Inc........................................ 432,718
------------
2,953,837
------------
RETAIL -- 0.25%
17,000 Claire's Stores Inc..................................... 330,437
------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SCHOOLS -- 0.15%
11,100 Bright Horizons Inc.*.................................... $ 208,125
------------
SECURITY SERVICES -- 0.23%
91,500 Magal Security Systems*.................................. 308,813
------------
SHIPBUILDING -- 0.77%
35,895 Halter Marine Group Inc.*................................ 1,036,468
------------
STEEL -- 2.23%
50,000 Birmingham Steel Corp.................................... 787,500
11,400 Carpenter Technology Corp................................ 547,912
22,300 J & L Specialty Steel Inc................................ 224,394
24,900 Oregon Steel Mills Inc................................... 530,681
12,300 Reliance Steel & Aluminum................................ 365,925
19,500 Quanex Corp.............................................. 548,437
------------
3,004,849
------------
TECHNOLOGY -- 0.34%
11,700 Commscope*............................................... 157,219
26,000 Faro Technologies Inc.*.................................. 302,250
------------
459,469
------------
TELECOMMUNICATION EQUIPMENT -- 1.20%
10,260 ADC Telecommunications Inc.*............................. 428,355
40,500 Antech Corp.*............................................ 632,812
13,300 DCS Communications Corp.*................................ 319,200
22,400 Paging Network Inc.*..................................... 240,800
------------
1,621,167
------------
TELECOMMUNICATIONS -- 2.87%
77,730 Arch Communications Group*............................... 398,366
22,100 Coherent Communication Systems Corp.*.................... 616,037
92,325 Interferon Sciences Inc.*................................ 802,073
14,100 Omnipoint Corp.*......................................... 327,825
28,100 Transaction Network Services*............................ 567,269
27,300 Western Wireless Corp., Class-A*......................... 470,925
22,400 Winstar Communications*.................................. 389,200
11,800 360 Communications Co.*.................................. 294,263
------------
3,865,958
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- ------------
<C> <S> <C>
TEXTILES & APPAREL -- 0.53%
29,500 Hartmarx Corp.*...................................... $ 224,937
12,100 Unifi Inc............................................ 492,319
------------
717,256
------------
TOYS -- 0.37%
49,100 Galoob (Lewis) Toys Inc.*............................ 500,206
------------
TRANSPORTATION -- 2.33%
35,000 ABC Rail Products Corp.*............................. 700,000
15,000 America West Airlines Inc., Cl. B*................... 279,375
24,000 Celadon Group*....................................... 324,000
34,600 Mesaba Holdings Inc.*................................ 899,600
14,500 Teekay Shipping Corp.*............................... 486,656
13,700 U.S. Freightways Corp................................ 445,250
------------
3,134,881
------------
UTILITIES -- ELECTRICAL -- 0.42%
19,600 Calenergy Company Inc.*.............................. 563,500
------------
WHOLESALE SPECIAL LINE -- 0.59%
29,000 Cameron Ashley Building Products*.................... 485,750
47,500 Sodak Gaming Inc.*................................... 302,812
------------
788,562
------------
WIRE & CABLE -- 1.07%
18,300 Cable Design*........................................ 711,412
24,700 Essex International Inc.*............................ 734,825
------------
1,446,237
------------
TOTAL -- FRONTIER CAPITAL MANAGEMENT PORTFOLIO (COST
$56,500,047)........................................ 65,967,235
------------
TOTAL COMMON STOCKS (COST $107,673,452).............. 125,294,257
------------
CORPORATE BONDS -- 0.47%
CLOVER CAPITAL MANAGEMENT PORTFOLIO -- 0.47%
500,000 Meditrust Corp., 7.50%, 3/1/01....................... 628,125
------------
TOTAL CORPORATE BONDS (COST $507,038)................ 628,125
------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
----------- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT PORTFOLIO -- 7.42%
$10,019,015 Bankers Trust Co., Repurchase Agreement, 5.25%,
1/2/98 (Collateralized by $9,244,000 U.S.
Treasury Notes, 8.75% 8/15/00; market value
$10,223,286)..................................... $ 10,019,015
------------
TOTAL SHORT-TERM INVESTMENTS (COST $10,019,015)... 10,019,015
------------
TOTAL INVESTMENTS (COST $118,199,505) (A) --
100.81%......................................... 135,941,397
------------
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.81%).. (1,090,139)
------------
NET ASSETS -- 100.00%............................. $134,851,258
============
</TABLE>
- --------
*Represents non-income producing security.
ADR--American Depository Receipt
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $24,490,580
Unrealized depreciation......................................... (6,748,688)
-----------
Net unrealized appreciation..................................... $17,741,892
===========
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS -- 93.99%
AUSTRALIA -- 4.76%
36,000 Amcor Ltd. (Forest Products)........................... $ 158,347
89,900 Boral Limited (Building Materials)..................... 227,298
17,500 Brambles Industries Ltd. (Services).................... 347,240
113,600 Broken Hill Proprietary Co. Ltd.
(Metals - Diversified)(b)............................. 1,054,869
19,000 Coca Cola Amatil Ltd. (Beverages)(b)................... 141,961
65,000 CSR Limited (Industrial)(b)............................ 220,253
225,000 David Jones Limited (Retail Store)..................... 253,649
14,991 Lend Lease Corp. Ltd. (Real Estate)*................... 293,060
120,442 M.I.M. Holdings Ltd. (Mining)(b)....................... 73,775
28,000 Mayne Nickless Ltd (Transportation).................... 147,973
79,200 National Australia Bank Ltd. (Financial)(b)............ 1,105,993
165,476 News Corp. Ltd. (Publishing & Printing)(b)............. 913,321
43,304 News Corp. Ltd. Pfd. (Publishing & Printing)........... 214,291
103,800 Pacific Dunlop Ltd. (Holding Company)(b)............... 219,829
98,049 Qantas Airways Ltd. (Transportation)................... 173,531
41,050 Rio Tinto Ltd. (Mining)................................ 478,899
23,200 Santos Ltd. (Oil & Gas)(b)............................. 95,545
39,000 Telstra Corp. (Telecommunications)(b).................. 82,341
131,200 Westpac Banking Corp. (Financial)...................... 839,215
71,000 WMC Limited (Metals - Diversified)(b).................. 247,524
43,000 Woolworths Limited (Food - Retail)(b).................. 143,744
------------
7,432,658
------------
BELGIUM -- 3.44%
2,742 Acec - Union Miniere SA (Mining)(b).................... 189,919
10,400 Delhaize Freres NPV (Retail - Grocery)................. 526,937
4,210 Electrabel NPV (Utilities)............................. 972,369
3,684 Fortis AG NPV (Insurance).............................. 767,479
224 Fortis AG - Strip Vvpr (Insurance)(b).................. 30
1,000 Generale De Banque (Financial Services)................ 434,578
550 Generale De Banque - Tractabel Warrants expiring
11/30/99 (Financial Services)(b)...................... 1,408
2,120 Group Bruxelles Lambert NPV (Financial Services)....... 306,244
1,030 Kredietbank NPV (Financial Services)................... 431,653
25 Kredietbank - Vvpr (Financial Services)(b)............. 10,477
1,890 Petrofina SA NPV (Oil & Gas)........................... 696,557
2,920 Societe Generale de Belgique Paris (Multi-
Industry)(b).......................................... 266,778
6,240 Solvay SA (Chemicals).................................. 391,839
4,350 Tractebel NPV (Multi-Industry)......................... 378,669
------------
5,374,937
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
CANADA -- 3.13%
11,700 Agrium Inc. (Agriculture - Supplier)................... $ 142,205
9,100 Alcan Aluminium Ltd. (Metals - Diversified)........... 250,447
7,000 Bank Of Montreal (Financial)........................... 309,758
5,600 Barrick Gold Corp. (Mining)............................ 104,247
6,300 Canadian National Railway Co. (Transportation)......... 296,165
20,900 Canadian Pacific Ltd. (Holding Company)................ 562,063
7,800 Hudson's Bay Co. (Retail - Department Stores).......... 173,533
3,200 Imasco Ltd. (Tobacco).................................. 112,881
7,500 Imperial Oil Canada Ltd. (Oil & Gas)................... 481,978
2,200 Magna International Inc. Cl. A (Auto Related).......... 137,692
8,000 Moore Corp. Ltd. (Business Equipment).................. 120,145
3,000 Newbridge Networks Corp. (Telecommunication
Services)(b).......................................... 104,883
9,500 Noranda Inc. (Metals - Diversified)(b)................. 163,244
1,750 Northern Telecom Ltd. (Telecommunications)............. 155,429
25,600 Nova Corp. of Alberta (Utilities)...................... 243,196
2,900 Potash Corp. of Saskatchewan (Agriculture)............. 241,160
8,200 Royal Bank of Canada (Financial)....................... 433,026
5,500 Seagram Co. Ltd. (Wine & Spirits)...................... 177,686
12,300 Telus Corp. (Telecommunication Services)............... 272,360
12,500 Transcanada Pipelines Ltd. (Utilities)................. 278,535
6,000 Westcoast Energy Inc. (Utilities)...................... 138,307
------------
4,898,940
------------
FINLAND -- 0.73%
1,400 Cultor Oyj 1 (Foods)................................... 76,067
24,000 Merita Ltd. (Banking).................................. 131,282
6,100 Mesta Serla Cl. B (Forest Products & Paper)............ 47,588
7,400 Nokia (Telecommunications)............................. 525,681
5,400 Outokumpu (Metals - Steel)............................. 65,917
500 Pohjola Insurance Co. (Insurance)...................... 18,540
231 Rauma (Industrial)..................................... 3,604
2,000 Sampo Insurance Co. (Insurance)........................ 64,980
10,300 UPM - Kymmene (Paper Products)......................... 206,083
------------
1,139,742
------------
FRANCE -- 5.67%
1,548 Accor Ltd. (Leisure & Tourism)(b)...................... 287,834
2,772 Alcatel Alsthom (Telecommunications)(b)................ 352,367
4,118 AXA UAP Certificate Of Guaranteed Value
(Insurance)(b)........................................ 4,037
6,018 AXA UAP SA (Insurance)(b).............................. 465,692
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FRANCE (CONTINUED)
6,110 Banque Nationale de Paris (Financial).................. $ 324,785
450 Cie Bancaire SA (Financial Services)(b)................ 72,905
3,486 Cie de St. Gobain (Building Materials)................. 495,261
3,200 Cie Financiere de Paribas (Financial -Banking)......... 278,094
3,590 Cie Generale Des Eaux (Utilities)...................... 501,088
4,590 CIE Generale Warrants expiring 12/31/01 (Diversified
Operations)........................................... 3,119
2,780 Dexia France (Insurance)............................... 321,972
12,000 France Telecom SA (Telecommunications)(b).............. 435,287
1,300 Groupe Danone (Food Products & Services)............... 232,216
2,800 Lafarge SA (Building Materials)(b)..................... 183,732
8,800 Lagardere Group (Diversified)(b)....................... 290,989
4,111 Lyonnaise Des Eaux Dumez (Environmental)............... 454,949
6,534 Michelin Cl. B (Tire & Rubber)......................... 328,975
7,226 Pechiney Cert. D'Invest (Metals)....................... 285,289
3,650 Peugeot SA (Auto Related).............................. 460,336
650 Pinault Printemps Redoute (Merchandising).............. 346,812
10,288 Rhone Poulenc Ord. (Pharmaceuticals)(b)................ 460,884
10,200 Seita (Tobacco)(b)..................................... 366,096
3,494 Societe Generale (Financial)(b)........................ 476,077
4,710 Societe Nationale Elf Aquitane (Oil & Gas)............. 547,848
9,200 Thomson CSF (Defense)(b)............................... 289,999
4,367 Total Co. Cl. B (Oil & Gas)............................ 475,297
7,700 Unisor Sacilor (Iron & Steel).......................... 111,186
------------
8,853,126
------------
GERMANY -- 9.95%
6,310 Allianz AG Holdings (Insurance)........................ 1,634,861
8,870 BASF AG (Chemicals).................................... 314,390
22,940 Bayer AG (Chemical)(b)................................. 857,093
750 Bayerische Motoren Werke AG (Auto Related)(b).......... 560,853
18,970 Commerzbank AG (Banking)............................... 746,734
16,900 Continental AG (Tire & Rubber)(b)...................... 373,029
8,800 Daimler Benz AG (Auto Related)......................... 617,458
18,383 Deutsche Bank AG (Financial)........................... 1,298,033
60,950 Deutsche Telekom AG (Telecommunications)............... 1,147,091
6,850 Henkel KGAA Vorzug (Chemicals)......................... 432,267
5,400 Hochtief AG (Building Materials)....................... 213,166
7,370 Hoechst AG (Chemicals)................................. 258,151
1,130 Man AG (Machinery & Engineering)....................... 327,327
1,298 Mannesmann AG (Machineering & Engineering)(b).......... 656,000
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
GERMANY (CONTINUED)
12,808 Metro AG (Retail - Department Stores).................. $ 459,311
3,215 Muenchener Rueckver AG (Insurance)(b).................. 1,211,926
1,771 Preussag AG (Holding Company)(b)....................... 540,575
12,975 RWE AG (Oil & Gas)(b).................................. 696,146
7,308 Schering AG (Pharmaceuticals).......................... 704,958
14,100 Siemens AG (Manufacturing)............................. 834,899
15,132 Veba AG (Utilities).................................... 1,030,618
1,125 Volkswagen AG (Auto Related)........................... 632,992
------------
15,547,878
------------
HONG KONG -- 0.96%
39,000 Cheung Kong Holdings (Real Estate)(b).................. 255,552
22,000 China Light & Power (Electric - Distribution)(b)...... 122,143
21,000 Citic Pacific Ltd. (Diversified)....................... 83,512
16,700 Hang Seng Bank (Banking)(b)............................ 161,178
96,000 Hong Kong & China Gas Company Ltd. (Utilities - Natural
Gas)(b)............................................... 185,926
104,000 Hong Kong Telecommunications (Telecom Services)(b)..... 214,177
45,000 Hutchison Whampoa (Diversified Operations)(b).......... 282,376
19,000 Sun Hung Kai Properties (Real Estate)(b)............... 132,473
12,000 Swire Pacific Ltd. (Airlines).......................... 65,849
------------
1,503,186
------------
ITALY -- 4.35%
5,000 Aeroporti Di Roma (Transportation)(b).................. 51,880
26,510 Assic Generali (Insurance)............................. 651,320
75,000 Banca Commerciale Italiana (Banking)(b)................ 260,814
132,500 Credito Italiano (Financial - Banking)(b).............. 408,701
51,500 Danieli Di Risp (Engineering).......................... 185,208
31,600 Edison Spa (Utilities)(b).............................. 191,190
5,900 ENI ADS - ADR (Oil).................................... 336,669
121,000 Ente Nazionale Idrocarburi (Insurance)................. 686,249
225,750 Fiat Spa (Auto Related)(b)............................. 344,656
35,400 Istituto Mobiliare Italiano Spa (Financial
Services)(b).......................................... 420,356
122,400 Istituto Nazionale D Assicurazi (Insurance)............ 248,122
49,000 Italgas (Utilities).................................... 202,262
13,000 Mediobanca Spa (Financial Services)(b)................. 102,103
416,840 Montedison Spa (Multi - Industries).................... 374,531
39,000 Rinascente (Retail - Department Stores)(b)............. 291,094
38,000 Rinascente Savings Risp (Retail - Department Stores).. 141,815
1,400 Rinasecnte Savings Warrants expiring 12/31/99 (Retail -
Department Stores)................................... 1,694
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ITALY (CONTINUED)
34,000 Sai Risp (Insurance).................................... $ 149,958
33,555 Telecom Italia (Telecommunications)(b).................. 214,403
81,000 Telecom Italia Mobile de Risp (Telecommunications)...... 373,969
137,930 Telecom Italia RNC (Telecommunications)................. 608,343
195,000 Tim Di Risp (Telecommunications)........................ 554,623
------------
6,799,960
------------
JAPAN -- 18.80%
63,000 Amada (Hand/Machine Tools).............................. 234,713
40,000 Asahi Glass Co. (Building Materials).................... 190,505
55,000 Bank Of Tokyo - Mitsubishi (Financial -Banking)......... 760,485
50,000 Canon Inc. (Business Equipment)......................... 1,167,614
21,000 Canon Sales (Business & Public Services)................ 240,360
58,000 Citizen Watch Co. (Jewelry)............................. 389,845
57,000 Dai Nippon Printing (Printing & Publishing)............. 1,072,745
51,000 Daiichi Pharmaceuticals (Pharmaceuticals)............... 575,895
62,000 Daikin Kogyo Co. (Machinery & Engineering).............. 234,322
31,000 Daiwa House Industries (Manufacturing/Housing).......... 164,311
32,000 Denso Corp. (Auto Parts)................................ 577,662
24,600 Fanuc Co. (Electronic Components)....................... 933,507
37,000 Fujitsu (Computer Equipment)............................ 397,911
122,000 Hitachi Ltd. (Electrical & Electronics)................. 871,562
20,000 Honda Motor Co. (Auto Related).......................... 735,904
8,000 Hoya Corp. (Electrical Components)...................... 251,959
49,000 Inax (Building Materials)............................... 142,656
24,000 Ito Yokado Co. (Retail - Grocery)....................... 1,225,996
62,000 Kaneka Corp. (Chemicals)................................ 280,519
71,000 Keio Teito Electric Railway (Transportation)............ 272,154
71,000 Kintetsu-Kinki Nippon Railway (Transportation).......... 380,143
68,000 Kirin Brewery Co. Ltd. (Brewery)........................ 496,236
20,000 Kokuyo (Office/Business)................................ 345,675
75,000 Kuraray Co. Ltd. (Chemicals)............................ 622,215
7,000 Kyocera Corp. (Electronics)............................. 318,328
33,000 Marui (Retail).......................................... 514,595
92,000 Matsushita Electric Co. (Electronic Components)......... 1,349,824
68,000 Mitsubishi Paper Mills (Forest Products & Paper)........ 95,591
101,000 NGK Insulators (Industrial Components).................. 899,985
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
JAPAN (CONTINUED)
5,300 Nintendo (Toys)........... $ 521,125
40,000 Nippon Meat Packers (Food
Processing).............. 546,935
47,000 Nippon Steel Corp.
(Steel).................. 69,680
67,000 Okumura (Construction).... 159,548
118,000 Osaka Gas Corp.
(Utilities).............. 270,118
44,000 Sankyo Pharmaceutical
(Pharmaceuticals)........ 997,081
15,000 Secom Co. (Business &
Public Services)......... 960,977
42,000 Seino Transport (Trucking
& Leasing)............... 210,032
96,000 Sekisui House
(Manufacturing/Housing).. 618,713
17,000 Shinmaywa Industries
(Industries)............. 41,788
14,200 Sony Corp. (Electrical &
Electronics)............. 1,265,326
66,000 Sumitomo Bank Ltd.
(Financial).............. 755,416
73,000 Sumitomo Chemical Co.
(Chemicals).............. 168,229
51,000 Sumitomo Electric (Metal
Fabricate/Hardware)...... 697,342
38,000 Takeda Chemical Industries
(Pharmaceuticals)........ 1,085,881
11,000 TDK Corp. (Electrical &
Electronics)............. 831,464
56,000 Tokio Marine & Fire
(Insurance).............. 636,657
16,200 Tokyo Electric Power
(Utilities).............. 296,175
33,000 Tokyo Steel (Steel)....... 111,791
45,000 Tonen Corp. (Oil & Gas)... 243,355
221,000 Toray Industries
(Chemicals).............. 993,125
145,000 Toshiba Corp. (Electrical
& Electronics)........... 604,816
36,000 Toyo Suisan Kaisha (Food
Processing).............. 249,992
35,000 Toyota Motor Corp. (Auto
Related)................. 1,005,531
30,000 Yamazaki Baking Co. Ltd.
(Food Processing)........ 292,672
------------
29,376,986
------------
MALAYSIA -- 1.59%
60,000 Hume (Building Products).. 63,171
130,000 Kuala Lumpur
(Miscellaneous -
Materials)............... 280,115
107,000 Land & General (Forest
Paper & Products)........ 19,880
68,000 Malayan Banking
(Financial).............. 198,287
58,000 Malaysia International
Shipping
(Transportation)......... 85,312
32,000 Nestle Malaysia (Food
Processing).............. 148,637
61,000 New Straits Times Press
Berhad (Publishing &
Printing)................ 75,872
39,000 Perusahaan Otomobil
Nasional
(Automotive)(b).......... 38,243
53,000 Petronas Gas Berhad
(Utilities - Natural
Gas)..................... 121,039
41,000 Public Bank (Local) Rights
(Financial)(b)........... 0
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MALAYASIA (CONTINUED)
115,200 Public Bank Berhard (Financial)........................ $ 39,835
96,000 Public Bank Rights (Financial)(b)...................... 0
49,200 Public Bank - Local (Financial)........................ 15,362
55,000 Resorts World Berhard (Entertainment).................. 92,963
35,000 Rothmans Pall Mall (Tobacco)........................... 273,212
182,000 Sime Darby Berhard (Holding Company)................... 175,650
132,500 Telekom Malaysia (Telecommunications)(b)............... 393,205
148,000 Tenega Nasional (Utilities)............................ 316,990
25,000 UMW Holdings Berhard (Machinery & Equipment)........... 19,031
44,000 United Engineers Berhad (Engineering).................. 36,788
3,600 YTL Corp Warrants expiring 9/20/02
(Telecommunications)(b)............................... 1,468
64,000 YTL Corporation Berhard (Telecommunications)........... 86,705
1,700 YTL Power International (Telecommunications)(b)........ 1,312
------------
2,483,077
------------
NETHERLANDS -- 4.23%
27,640 ABN-Amro Holding NV (Financial)........................ 538,300
1,000 Akzo Nobel (Chemicals)................................. 172,370
32,400 Elsevier (Publishing & Printing)....................... 523,972
2,300 Heineken (Beverages)................................... 400,306
15,961 ING Groep NV (Financial)............................... 672,059
4,264 KLM Royal Dutch Air (Transportation)(b)................ 157,677
3,031 Kon Hoogovens (Iron & Steel)........................... 124,187
16,511 Koninklijke NV (Telecommunications).................... 688,705
8,550 Philips Electronics (Electronic Components)............ 512,612
37,580 Royal Dutch Petroleum (Oil & Gas)...................... 2,062,248
12,240 Unilever NV (Food Processing).......................... 754,363
------------
6,606,799
------------
NEW ZEALAND -- 3.03%
967,900 Brierley Investment Co. (Multi-Industries)............. 691,277
333,400 Carter Holt Harvey (Forest Products & Paper)(b)........ 514,948
110,700 Fletcher Challenge Building Ltd. (Building &
Materials)............................................ 226,259
122,700 Fletcher Challenge Energy Ltd. (Oil & Gas)............. 429,614
237,589 Fletcher Challenge Forestery (Forest Produsts &
Paper)(b)............................................. 197,278
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
NEW ZEALAND (CONTINUED)
220,400 Fletcher Challenge Paper Ltd. (Forest Products &
Paper)................................................ $ 287,946
84,000 Lion Nathan Ltd. (Brewery)............................. 188,271
6,200 New Zealand Telecom - ADR (Telecommunications)......... 240,250
404,800 Telecom Corp. Of New Zealand (Telecommunications)(b)... 1,962,652
------------
4,738,495
------------
SINGAPORE -- 1.90%
37,000 City Development (Real Estate)......................... 171,530
71,000 DBS Land (Real Estate)................................. 108,874
35,000 Development Bank Of Singapore (Banking)(b)............. 299,554
11,000 Elec & Eltek International (Electrical Equipment)...... 50,380
14,000 Fraser & Neave (Beverages)............................. 60,743
114,000 Hotel & Properties (Lodging)........................... 74,532
38,250 Keppel Corp. (Machinery & Equipment)................... 110,033
41,000 Keppel Land Limited (Real Estate)...................... 56,535
32,000 Natsteel (Iron/Steel).................................. 43,364
61,000 Overseas Chinese Banking Corp. (Banking)(b)............ 355,305
63,000 Singapore International Airlines (Transportation)...... 411,887
18,000 Singapore Press Holdings (Telecommunications).......... 225,736
295,000 Singapore Telecom Ltd. (Telecommunications)(b)......... 550,549
67,000 United Overseas Bank (Banking)(b)...................... 372,333
11,000 Venture Manufacturing Ltd. (Computers)................. 30,728
40,000 Wing Tai Holdings Ltd. (Holding Company)............... 46,835
------------
2,968,918
------------
SPAIN -- 2.37%
400 Acerinox SA (Steel)(b)................................. 59,119
13,200 Banco Bilbao Vizcaya (Financial)....................... 426,141
10,620 Banco Central Hispanoamericano (Financial)............. 258,007
4,000 Banco Popular Espanol (Financial)...................... 278,960
10,500 Banco Santander SA (Financial)......................... 349,977
4,200 Corporacion Mapfre SA (Insurance)...................... 111,113
25,100 Endesa-Empresa Nacional de Electric (Utilities)........ 444,604
4,800 Fomento De Construcciones (Construction)............... 182,306
4,900 Gas Natural SDG (Gas Production)....................... 253,487
26,900 Iberdrola SA (Utilities)(b)............................ 353,183
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SPAIN (CONTINUED)
4,400 Repsol SA (Oil & Gas)................................... $ 187,283
2,300 Repsol SA - ADR (Oil & Gas)............................. 97,894
600 Tabacalera SA (Beverages)............................... 48,523
15,800 Telefonica De Espana (Telecommunications)............... 450,068
3,600 Vallehermoso SA (Real Estate)........................... 110,091
3,800 Viscofan (Food Processing).............................. 95,180
------------
3,705,936
------------
SWEDEN -- 1.66%
11,500 Abb AB Cl. A (Engineering).............................. 136,337
26,500 Astra AB Cl. A (Pharmaceuticals)........................ 459,553
1,800 Electrolux AB Cl. B (Manufacturing - Consumer Goods)... 125,087
9,200 Ericsson LM Cl. B (Telecommunications).................. 346,353
6,300 Hennes & Mauritz AB Cl. B (Clothing).................... 278,097
61,200 Nordbanken Holding AB (Holding Company)(b).............. 346,565
4,600 Securitas AB Cl. B (Services)........................... 139,237
3,400 Skanska AB Cl. B (Engineering).......................... 139,578
5,500 Svenska Handelsbanken Cl. A (Banking -
Financial)............................................. 190,411
50,400 Swedish Match AB (Tobacco).............................. 168,447
9,800 Volvo AB (Automotive)................................... 263,265
------------
2,592,930
------------
SWITZERLAND -- 4.93%
145 ABB AG (Electrical & Electric).......................... 182,231
4,955 Credit Suisse Group (Financial)......................... 766,954
241 Holderbank (Building Materials & Components)............ 196,748
580 Nestle SA (Food Processing)............................. 869,543
1,240 Novartis AG (Pharmaceuticals)........................... 2,012,740
140 Roche Holding AS - Genusshein (Pharmaceuticals)......... 1,390,795
339 Schw Lebensv & Rentenanst (Insurance)................... 266,306
352 Schw Rueckversicherungs (Insurance)..................... 658,629
270 Sulzer AG (Manufacturing - Consumer Goods).............. 171,235
156 Swiss Air (Transportation)(b)........................... 213,684
360 Union Bank of Switzerland (Financial)................... 520,731
970 Zuerich Vericherung (Insurance)......................... 462,379
------------
7,711,975
------------
UNITED KINGDOM -- 22.49%
39,000 Abbey National PLC (Commercial Banks)................... 672,292
189,300 B.A.T. Industries (Tobacco)............................. 1,724,925
</TABLE>
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
UNITED KINGDOM (CONTINUED)
22,000 Barclays PLC (Banking)................................. $ 583,866
23,500 Bass PLC (Brewery)..................................... 361,461
200,912 BG Ord (Transportation - Gas).......................... 904,636
148,000 Billiton PLC (Oil & Gas)(b)............................ 377,582
85,100 Booker PLC (Food Processing)........................... 444,009
95,000 British Energy PLC (Utilities)......................... 670,509
113,019 British Petroleum Co. PLC (Oil & Gas).................. 1,486,726
51,000 British Sky Broadcasting Group PLC (Broadcasting &
Publishing)........................................... 380,491
133,800 British Steel PLC (Steel/Iron)(b)...................... 289,684
173,600 British Telecom PLC (Telecommunications)............... 1,368,619
72,000 BTR PLC (Industrial Holdings).......................... 220,663
40,000 Cable & Wireless PLC (Telecommunications).............. 351,338
68,000 Cadbury Schweppes PLC (Food Processing)................ 676,055
155,500 Centrica PLC (Utilities)(b)............................ 224,870
37,053 Charter (Multi-Industries)............................. 455,148
162,400 Coats Viyella (Textiles & Apparel)..................... 244,188
82,500 Diageo PLC (Beverages)................................. 757,173
192,000 FKI PLC (Electronics).................................. 605,788
169,700 General Electric PLC (Electrical & Electronics)........ 1,112,686
100,800 Glaxo Wellcome PLC (Pharmaceuticals)................... 2,381,977
62,000 Great Universal (Merchandising)........................ 764,137
50,000 Greenalls Group PLC (Retail - Department Stores)...... 360,705
43,000 H.S.B.C. Holdings PLC (Financial Services)............. 1,110,101
63,175 Hanson PLC (Food Processing)........................... 282,898
198,100 Hillsdown Holdings (Food Processing)................... 483,425
212,200 House Of Fraser (Retail - Department Stores)........... 699,162
106,000 Inchcape PLC (Commercial Services)..................... 281,317
96,500 Legal And General (Insurance).......................... 832,539
144,700 Lloyds TSB Group Plc (Financial)....................... 1,869,000
116,100 Marks & Spencer PLC (Retail - Department Stores)...... 1,142,818
201,100 Mirror Group PLC (Publishing & Printing)............... 649,371
39,700 National Westminster Bank (Financial).................. 658,590
115,000 Northern Foods PLC (Foods)............................. 497,017
73,300 Peninsular & Oriental Steam Navigation Co.
(Transportation)...................................... 841,975
21,110 Reckitt & Colman (Household Products).................. 331,464
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
SHARES DESCRIPTION (NOTE 2)
------ ----------- --------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UNITED KINGDOM (CONTINUED)
44,000 Reuters Holdings PLC (Publishing & Printing)............ $ 483,362
44,100 Rio Tinto PLC (Mining).................................. 511,274
107,500 RJB Mining PLC (Mining)................................. 231,418
63,480 Royal & Sun Alliance Insurance Group PLC (Insurance).... 636,333
47,400 Scottish Hydro (Utilities - Electric)................... 391,800
258,700 Sears (Retail - Department Stores)...................... 223,189
177,300 Sedgwick Group (Insurance).............................. 410,815
105,000 Smithkline Beecham (Pharmaceuticals).................... 1,079,281
156,762 Smurfit (Jefferson) Group (Packaging)................... 435,357
50,000 Tate + Lyle (Food Processing)........................... 412,469
76,600 Tesco (Retail - Grocery)................................ 616,798
52,600 Thames Water (Utilities)................................ 787,448
46,000 Unilever (Food Processing).............................. 394,212
102,500 Vodafone (Telecommunications)........................... 747,026
120,000 Williams Holdings (Consumer Services)................... 680,328
------------
35,140,315
------------
TOTAL COMMON STOCKS
(COST $142,812,207).................................... 146,875,858
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 2)
--------- ----------- --------
<C> <S> <C>
TIME DEPOSIT -- 6.22%
UNITED STATES -- 6.22%
9,500,000 Bankers Trust Time Deposit 6.125%, 1/2/98........... $ 9,500,000
220,693 Bankers Trust Weekly Time Deposit 5.375%, 1/7/98.... 220,693
------------
9,720,693
------------
TOTAL TIME DEPOSIT (COST $9,720,693)................ 9,720,693
------------
TOTAL INVESTMENTS (COST $152,532,900) (A) --
100.21%........................................... 156,596,551
LIABILITIES IN EXCESS OF OTHER ASSETS (0.21)%....... (322,382)
------------
TOTAL NET ASSETS -- 100.00%......................... $156,274,169
============
</TABLE>
- --------
* Passive Foreign Investment Company
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................ $ 20,942,673
Unrealized depreciation........................................ (16,879,022)
------------
Net unrealized appreciation.................................... $ 4,063,651
============
</TABLE>
(b) Represents non-income producing security.
ADR--American Depositary Receipt
PLC--Public Liability Company
<TABLE>
<CAPTION>
CONTRACT VALUE ON
AMOUNT SETTLEMENT ORIGINATION VALUE ON APPRECIATION
(LOCAL CURRENCY) DATE DATE 12/31/97 (DEPRECIATION)
---------------- ---------- ------------ ------------ --------------
<C> <S> <C> <C> <C> <C>
CURRENCY PURCHASED
3,400,000 Canadian Dollar......... 2/20/98 $2,470,930 $2,378,620 ($92,310)
9,300,000 Danish Kroner........... 2/20/98 1,339,286 1,360,226 20,940
17,000,000 French Franc............ 2/20/98 2,770,083 2,832,861 62,778
411,000,000 Japanese Yen............ 2/20/98 3,165,069 3,180,129 15,060
2,650,000 Netherlands Guilder..... 2/20/98 1,326,974 1,310,519 (16,455)
5,900,000 Norwegian Krone......... 2/20/98 840,001 800,619 (39,382)
8,700,000 Swedish Krone........... 2/20/98 1,091,867 1,098,776 6,909
5,400,000 Swiss Franc............. 2/20/98 3,633,917 3,720,033 86,116
------------ ------------ --------
Total Currency Purchased $16,638,127 $16,681,784 $43,656
============ ============ ========
CURRENCY SOLD
(5,100,000) Australia Dollar........ 2/20/98 ($3,745,725) ($3,327,244) $418,481
(125,000,000) Belgian Franc........... 2/20/98 (3,360,594) (3,378,652) (18,058)
(5,450,000) British Pound........... 2/20/98 (8,638,250) (8,934,426) (296,176)
(1,200,000) German Mark............. 2/20/98 (658,979) (669,120) (10,141)
(11,500,000) Hong Kong Dollar........ 2/20/98 (1,461,245) (1,480,147) (18,902)
(1,340,000,000) Italian Lire............ 2/20/98 (787,536) (757,490) 30,046
(3,350,000) Malaysian Ringgit....... 2/20/98 (1,190,476) (864,605) 325,871
(2,100,000) Singapore Dollar........ 2/20/98 (1,385,224) (1,245,625) 139,599
------------ ------------ --------
Total Currency Sold ($21,228,029) ($20,657,309) $570,720
============ ============ ========
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
THE HIRTLE CALLAGHAN TRUST
THE LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MATURITY VALUE
AMOUNT DESCRIPTION RATE DATE (NOTE 2)
---------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS -- 96.66%
ALABAMA -- 0.45%
$ 40,000 Homewood Alabama, Prerefunded 2/1/99
@ 102.............................. 8.250% 2/1/04 $ 42,284
180,000 Pell City Alabama Industrial
Development, Shelby Steel
Fabricators, AMT
(LOC - Southtrust Bank)............ 7.700 9/1/01 182,137
-----------
224,421
-----------
ARIZONA -- 0.98%
120,000 Gila County Arizona Industrial
Development Authority Revenue,
Prerefunded 2/15/01
@ 100.............................. 11.250 4/1/01 143,700
45,000 Maricopa County Arizona Industrial
Development Authority, Housing
Facility Revenue, Escrowed to
Maturity........................... 6.750 12/1/03 47,925
300,000 Valley Housing Development Revenue,
Section 8 Assistance............... 8.000 10/1/20 303,093
-----------
494,718
-----------
ARKANSAS -- 8.64%
45,000 Arkansas State Development Finance
Authority.......................... 9.375 8/1/14 45,976
95,000 Arkansas State Development Finance
Authority (Insured - FHA).......... 8.000 8/15/11 102,956
2,400,000 Arkansas State Development Finance
Authority (Insured - MBIA)......... 5.100 10/1/16 2,450,999
1,100,000 Rogers Arkansas Sales & Use Tax
Revenue............................ 5.000 11/1/15 1,135,750
366,817 Springdale Arkansas Residential
Housing Series A (FNMA Coll.)...... 7.650 9/1/11 400,747
215,000 Washington County Hospital Revenue,
Escrowed to Maturity (Insured -
AMBAC)............................ 6.500 1/1/00 221,181
-----------
4,357,609
-----------
CALIFORNIA -- 8.73%
1,500,000 Abag Finance Authority For
Nonprofit.......................... 6.000 10/1/07 1,500,150
45,000 California Health Facility Authority
Revenue, Prerefunded 5/1/99 @ 102.. 7.600 6/1/15 47,756
135,000 Chino California University School
District, Capital Construction
Project, Series A
(LOC - National Westminster),
Prerefunded 9/1/98 @ 102........... 8.000 9/1/04 141,380
490,000 City of Vallejo Housing Authority,
Multi-Family Housing Revenue,
Mandatory Put 6/1/99
@ 100 (Surety Bond with Continental
Casualty).......................... 5.000 6/1/07 491,548
2,015,000 Los Angeles California Multifamily
Housing Revenue, AMT (FNMA Coll.).. 4.850 7/1/02 2,040,187
170,000 Los Angeles Community Redevelopment
Agency Housing Revenue............. 5.500 12/1/05 178,925
-----------
4,399,946
-----------
COLORADO -- 1.39%
290,000 Aurora Colorado Housing Authority,
Single Family Mortgage Revenue..... 7.300 5/1/10 316,100
220,000 Colorado Housing Finance Authority,
AMT................................ 6.850 8/1/22 227,150
80,000 Commerce City Colorado Single Family
Mortgage Revenue, Series A......... 6.875 3/1/12 84,900
70,000 Denver Colorado City & County
Industrial Development Revenue
(LOC - Colorado National Bank)..... 6.500 6/1/99 72,013
-----------
700,163
-----------
CONNECTICUT -- 0.25%
120,000 Connecticut State Resource Recovery
Authority.......................... 7.625 1/1/09 124,800
-----------
DELAWARE -- 2.29%
75,000 Delaware Transit Authority, Escrowed
to Maturity........................ 9.000 7/1/01 83,719
550,000 Wilmington Delaware Hospital
Revenue, Osteopathic Hospital
Series A, Prerefunded
10/1/98 @ 102...................... 10.000 10/1/03 582,813
482,919 Wilmington Delaware Industrial
Development Revenue, Lewis Epstein
Project
(LOC - Wilmington Trust)........... 8.085 10/1/04 484,730
-----------
1,151,262
-----------
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
THE HIRTLE CALLAGHAN TRUST
THE LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MATURITY VALUE
AMOUNT DESCRIPTION RATE DATE (NOTE 2)
---------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS (CONTINUED)
DIST OF COLUMBIA -- 0.01%
$ 5,000 District Of Columbia Revenue (Howard
University), Series A (Insured -
MBIA)............................. 8.000% 10/1/17 $ 5,148
-----------
FLORIDA -- 0.66%
35,000 Dade County Florida Entitlement
Revenue, Prerefunded 2/1/00 @ 103
(Insured - AMBAC).................. 9.750 2/1/03 38,894
225,000 Dade County, Florida Health
Facilities (Insured - FHA INS)..... 7.600 8/1/24 241,031
50,000 Florida State Division Board Finance
Department (Insured - MBIA)........ 6.600 7/1/02 51,063
-----------
330,988
-----------
GEORGIA -- 0.54%
60,000 Cobb County, Georgia Water & Sewer,
escrowed to maturity............... 9.500 1/1/02 71,475
90,000 Fulton County Housing Authority,
Single-Family Revenue, AMT (GNMA
Coll.)............................. 6.200 3/1/13 96,075
100,000 Georgia Electric Authority,
Crossover Refunding 1/1/98 @ 102... 8.125 1/1/17 102,000
-----------
269,550
-----------
ILLINOIS -- 7.81%
270,000 Bloomingdale Illinois Water & Sewer
(Insured - MBIA)................... 7.800 5/1/06 291,263
300,000 Evergreen Park Hospital Revenue,
Prerefunded 2/15/98 @ 102
(Insured - MBIA)................... 7.750 2/15/09 307,266
200,000 Evergreen Park Illinois, Prerefunded
2/15/98 @ 102 (Insured - MBIA)..... 7.300 2/15/01 204,748
2,000,000 Illinois Health Facilities
Authority, Partial Prerefunded
4/1/99 @ 102....................... 7.375 4/1/08 2,115,000
100,000 Illinois State, General Obligation
Bonds.............................. 4.750 8/1/99 100,039
95,000 Macomb Illinois Elderly Housing
Corp. Revenue...................... 7.250 9/1/98 96,078
500,000 St. Clair County Public Building
Revenue, Escrowed to Maturity
(Insured - MBIA)................... 8.000 12/1/05 508,455
290,000 Woodridge Mortgage Revenue, Series
1992-1............................. 7.250 12/1/10 308,850
-----------
3,931,699
-----------
INDIANA -- 4.25%
225,000 Adams County Industrial Economic
Development Revenue, AMT (LOC -
Fuji Bank)........................ 7.450 6/1/00 231,336
295,000 Indiana State Toll Road Revenue,
Prerefunded 1/1/98 @ 100........... 10.000 1/1/00 295,000
100,000 Indianapolis, Indiana Utility
District, Escrowed to Maturity..... 6.600 6/1/98 101,161
1,385,000 Lawrence Indiana Multifamily
Revenue, AMT (FMNA Coll.).......... 5.050 1/1/08 1,424,819
80,000 Vigo County Indiana Hospital
Authority Revenue, Prerefunded
4/1/98 @100 and 4/1/99
@ 100.............................. 10.375 4/1/10 86,000
-----------
2,138,316
-----------
KANSAS -- 0.05%
25,000 Wichita Kansas Hospital Development,
Escrowed to Maturity............... 6.625 10/1/98 25,447
-----------
KENTUCKY -- 0.22%
35,000 Kentucky State Pollution Authority,
Escrowed to Maturity............... 5.900 8/1/03 36,838
75,000 University of Kentucky (Insured -
MBIA)............................. 5.000 5/1/98 75,299
-----------
112,137
-----------
LOUISIANA -- 6.92%
195,000 Calcasieu Parish Louisiana Public
Transportation Authority........... 6.375 11/1/02 207,675
20,000 East Baton Rouge Parish Hospital,
Escrowed to Maturity............... 6.200 10/1/02 21,000
2,500,000 Louisiana Public Facility Authority,
Series A-1, Mandatory Put 6/1/02 @
100
(Insured - AMBAC).................. 5.000 12/1/15 2,559,375
170,000 Parish of Ouachita Louisiana
Industrial Development (LOC -
Regions Bank of Louisiana)........ 4.125 8/1/98 170,228
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 8/1/99 195,488
-----------
3,484,047
-----------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MATURITY VALUE
AMOUNT DESCRIPTION RATE DATE (NOTE 2)
---------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS (CONTINUED)
MAINE -- 0.65%
$ 65,000 Maine Educational Loan Authority,
AMT................................ 6.150% 12/1/98 $ 66,218
250,000 Maine State Housing Authority....... 7.900 11/15/06 262,603
-----------
328,821
-----------
MASSACHUSETTS -- 1.53%
145,000 Boston Massachusetts Water & Sewer,
Escrowed to Maturity............... 10.650 1/1/99 150,810
485,000 Massachusetts Finance Agency,
Prerefunded 11/15/00 @ 102......... 8.400 11/15/08 545,625
75,000 Plymouth County Massachusetts,
Certificates of Participation,
Series A........................... 6.100 4/1/98 75,337
-----------
771,772
-----------
MICHIGAN -- 4.16%
455,000 Michigan State Housing Development
Authority.......................... 10.375 4/1/10 518,700
1,305,000 Michigan State Housing Development
Authority, Home Improvement, Series
B, AMT............................. 7.650 12/1/12 1,378,407
195,000 Michigan State Strategic Fund
(Insured - FHA).................... 6.000 2/1/00 199,631
-----------
2,096,738
-----------
MINNESOTA -- 1.46%
400,000 Apple Valley Housing Development
Revenue (LOC - Banque Paribas)..... 7.400 8/1/98 405,976
58,000 Dakota County Housing Authority, AMT
(GNMA/FNMA Coll.).................. 5.100 10/1/98 58,517
110,000 Dakota County, Minnesota, AMT
(GNMA/FNMA Coll.).................. 5.200 10/1/99 111,925
150,000 St Paul Minnesota Port Authority,
Prerefunded 12/1/98 @ 102.......... 8.000 12/1/07 158,568
-----------
734,986
-----------
MISSISSIPPI -- 0.75%
250,000 Mississippi Business Finance Corp.
Industrial Development Authority
Series 1996, AMT (LOC - National
Bank Commerce)..................... 4.800 9/1/98 250,797
125,000 Mississippi Home Corp. Mortgage
Access Program, Single-Family
Mortgage Revenue, AMT (GNMA
Coll.)............................. 4.500 6/1/99 125,469
-----------
376,266
-----------
MISSOURI -- 0.99%
30,000 North Kansas City Missouri Hospital,
Escrowed to Maturity............... 5.700 3/1/98 30,042
425,000 St. Louis County, Single-Family
Mortgage Revenue (Insured -
AMBAC)............................ 9.250 10/1/16 469,625
-----------
499,667
-----------
NEBRASKA -- 0.52%
225,000 Consumer Public Power............... 5.100 1/1/03 225,605
35,000 Douglas County, Hospital Authority
Revenue, Escrowed to Maturity...... 7.250 10/1/98 35,540
-----------
261,145
-----------
NEVADA -- 1.47%
50,000 Nevada Housing Development, AMT
(FNMA Coll.)....................... 5.850 4/1/98 50,227
650,000 Sparks Nevada Redevelopment Agency
Tax Allocation Revenue (Insured -
Asset GTY)........................ 3.900 1/15/98 650,039
40,000 Washoe Nevada Housing and Finance
(Insured - MBIA FHA 221 (D) 4)..... 6.875 7/1/21 42,400
-----------
742,666
-----------
NEW HAMPSHIRE -- 0.81%
395,000 New Hampshire State Housing Finance
Authority, AMT (LOC - Bank of Tokyo
Mitsubishi)........................ 7.900 7/1/00 407,838
-----------
NEW JERSEY -- 0.51%
250,000 Middlesex County Utilities Sewer
Authority.......................... 6.550 2/15/98 254,973
-----------
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MATURITY VALUE
AMOUNT DESCRIPTION RATE DATE (NOTE 2)
---------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS (CONTINUED)
NEW MEXICO -- 1.31%
$ 250,000 Alamagordo Municipal School
District............................ 7.125% 1/15/08 $ 256,528
330,000 New Mexico Management, Finance
Authority, AMT, Optional Put 11/1/98
@ 100............................... 4.100 3/1/19 330,112
75,000 New Mexico Managment Finance
Authority........................... 5.700 1/1/98 75,000
-----------
661,640
-----------
NEW YORK -- 6.11%
425,000 Amherst New York Industrial
Development Agency (LOC - Keybank).. 4.500 10/1/00 426,594
445,000 Amherst New York Industrial
Development Agency (LOC - Keybank).. 4.650 10/1/01 447,781
540,000 New York City Industrial Development
Revenue, Series I, AMT,
Mandatory Put 11/1/98 @ 100 (LOC -
Algemene Bank)..................... 8.000 11/1/08 548,689
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 1,077,055
555,000 New York State Housing Finance
Agency.............................. 7.900 11/1/99 575,119
-----------
3,075,238
-----------
OHIO -- 1.26%
300,000 Cleveland Ohio Airport Systems
Revenue............................. 7.000 1/1/06 308,093
150,000 Lucas County Ohio Hospital Revenue,
Prerefunded 11/15/99 @ 102
(Insured - MBIA).................... 6.750 11/15/09 159,188
110,000 Ohio State Air Quality Development
Authority Revenue, Escrowed to
Maturity
(LOC - Societe Generale)............ 7.875 11/1/00 117,563
45,000 Ohio State Water Development
Authority Revenue, Escrowed to
Maturity............................ 8.000 12/1/04 51,075
-----------
635,919
-----------
OKLAHOMA -- 0.58%
280,000 Oklahoma State Industrial Authority
Revenue, Escrowed to Maturity....... 6.250 10/1/02 294,350
-----------
PENNSYLVANIA -- 13.43%
40,000 Allegheny County Pennsylvania
Hospital............................ 7.500 8/1/13 40,885
385,000 Allegheny Pennsylvania Resident
Authority, Monthly Put, AMT (GNMA
Coll.)*............................. 4.000 12/1/14 392,700
95,000 Athens Pennsylvania Area School
Authority, Escrowed to Maturity..... 6.250 4/1/02 102,838
200,000 Beaver County Pennsylvania Industrial
Development Authority Pollution..... 6.000 5/1/07 200,236
210,000 Catasauqua Pennsylvania Area School
Authority, Escrowed to Maturity..... 8.400 2/15/01 224,438
25,000 Chester County Solid Waste Revenue,
Series B (CNTY GTD)................. 6.650 1/1/98 25,000
95,000 Dauphin County General Authority..... 5.650 1/1/99 96,077
70,000 Edgewood Pennsylvania School
District, Escrowed to Maturity...... 5.900 8/1/99 70,051
60,000 Elizabeth Boro Pennsylvania
(Insured - FSA)..................... 4.000 1/1/98 60,000
85,000 Erie Pennsylvania Higher Education
Building Authority.................. 4.300 3/15/98 85,067
240,000 Greene County Pennsylvania Industrial
Development Authority, Pollution
Control Revenue..................... 6.300 2/1/02 240,331
50,000 Harrisburg Pennsylvania Water
Authority, Escrowed to Maturity
(Insured - FGIC).................... 6.300 7/15/98 50,682
145,000 Harrisburg Pennsylvania, Escrowed to
Maturity............................ 7.125 4/1/99 150,256
100,000 Hatboro Horsham Pennsylvania School
District............................ 6.200 9/1/98 101,598
105,000 Mars Pennsylvania Area School
District (Insured - MBIA)........... 0.000 9/1/98 102,457
30,000 Pennsylvania Higher Education,
Medical College, Prerefunded 3/1/99
@ 102............................... 8.100 3/1/00 31,350
435,000 Pennsylvania State Education
Authority, University of the Arts
(Insured - Asset GTY)............... 4.000 3/15/98 435,265
1,000,000 Pennsylvania State Financing
Authority (Inv Ag - Sun America).... 6.600 11/1/09 1,097,499
320,000 Philadelphia Hospital & Higher
Education Authority, Moss
Rehabilitation Hospital Revenue
(Insured - AMBAC)................... 6.900 7/1/00 340,400
1,280,000 Philadelphia Hospital & Higher
Education Revenue................... 5.050 7/1/98 1,285,951
350,000 Philadelphia Muni Authority,
Prerefunded 4/1/00 @ 100 (Insured -
FGIC).............................. 7.800 4/1/18 378,000
25,000 Radnor Township School Authority,
Escrowed to Maturity................ 5.850 10/15/01 25,719
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MATURITY VALUE
AMOUNT DESCRIPTION RATE DATE (NOTE 2)
---------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS (CONTINUED)
PENNSYLVANIA (CONTINUED)
$ 555,000 Scranton Lackawanna Health & Welfare
Authority.......................... 4.750% 7/1/98 $ 555,938
110,000 Scranton Pennsylvania (Insured -
Asset GTY)........................ 4.200 11/15/99 110,275
100,000 Susquehanna Township Pennsylvania... 5.000 10/15/98 100,886
305,000 William Penn School District,
Escrowed to Maturity............... 8.000 8/1/00 333,594
130,000 Windber Area Authority Hospital
Revenue, Windber Hospital Project,
Escrowed to Maturity (Insured -
FHA).............................. 4.750 2/1/00 131,788
-----------
6,769,281
-----------
PUERTO RICO -- 0.10%
50,000 Puerto Rico Commonwealth Aquaduct &
Sewer Authority Revenue, Escrowed
to Maturity........................ 7.875 7/1/99 51,500
-----------
SOUTH DAKOTA -- 0.51%
250,000 South Dakota Student Loan Assistance
Corp., Escrowed to Maturity........ 7.000 8/1/98 254,525
-----------
TENNESSEE -- 4.40%
350,000 Fayetteville & Lincoln Tennessee
Industrial Development Board
Revenue, AMT
(LOC - Corestates Bank)............ 4.750 6/1/99 352,188
400,000 Fayetteville & Lincoln Tennessee
Industrial Development Board, AMT
(LOC - Corestates Bank)............ 5.000 6/1/01 406,000
400,000 Hendersonville Industrial
Development, Multi-Family Housing
Revenue, Mandatory Put 2/1/98 @
100................................ 5.375 2/1/06 400,408
190,000 Metro Government Nashville &
Davidson County Industrial
Development Board Revenue
(Insured - FHA 221 (D) 4).......... 6.250 7/1/02 199,263
365,000 Metro Government Nashville &
Davidson County Industrial
Development Board Revenue
(Insured - FHA 221 (D) 4).......... 6.250 7/1/02 381,881
450,000 Shelby County Tennessee Health and
Housing (Insured - Asset GTY)...... 6.000 10/1/02 474,187
-----------
2,213,927
-----------
TEXAS -- 1.20%
155,000 Austin, Texas Water, Sewer and
Electric........................... 14.000 11/15/01 189,100
170,000 Bexar County, Texas Health Facility
(LOC - Banque Paribas)............. 7.500 12/1/98 175,398
240,000 San Antonio Texas Electric & Gas
(Insured - FGIC)................... 5.250 2/1/00 240,220
-----------
604,718
-----------
VERMONT -- 0.21%
100,000 University of Vermnon & State
Agriculture College................ 7.700 11/1/02 105,680
-----------
VIRGINIA -- 1.63%
540,000 King George County Industrial
Development Authority, King County
Elementary School.................. 4.875 8/1/98 540,253
275,000 Virginia State Water & Sewer
Revenue, Series B (FNMA GIC)....... 8.700 11/1/11 279,505
-----------
819,758
-----------
WASHINGTON -- 5.90%
2,750,000 Washington State Health Care
Facilities Authority Revenue (LOC -
AIB Group)........................ 7.875 12/1/09 2,970,000
-----------
WEST VIRGINIA -- 3.14%
725,000 Releigh County West Virginia........ 8.250 4/1/98 729,756
845,000 West Virginia Board of Regents,
University of Virginia............. 6.600 4/1/06 850,602
-----------
1,580,358
-----------
WISCONSIN -- 0.84%
70,000 Madison Wisconsin Hospital Revenue,
Escrowed to Maturity............... 7.000 6/1/00 74,463
50,000 Racine Wisconsin Promissory Notes,
Series A........................... 4.600 12/1/98 50,337
90,000 Wisconsin Health Facility Authority
(LOC - First Bank)................. 4.200 2/1/98 90,005
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT/ SECURITY MATURITY VALUE
SHARES DESCRIPTION RATE DATE (NOTE 2)
---------- ----------- ---- -------- --------
<C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS (CONTINUED)
WISCONSIN (CONTINUED)
$ 90,000 Wisconsin Housing & Economic
Development Authority, AMT
(Insured - FHA Ins)................. 7.300% 9/1/99 $ 92,700
115,000 Wisconsin Housing & Economic
Development Authority, Series B, AMT
((GEMIC) Pool Ins).................. 6.625 9/1/20 117,443
-----------
424,948
-----------
TOTAL MUNICIPAL BONDS (COST
$48,136,664)........................ 48,686,965
-----------
MONEY MARKET MUTUAL FUNDS -- 2.18%
1,100,155 Provident Municipal Money Market..... 1,100,155
-----------
TOTAL MONEY MARKET MUTUAL FUNDS (COST
$1,100,155)......................... 1,100,155
-----------
TOTAL INVESTMENTS (COST $49,236,819)
(A) -- 98.84%....................... 49,787,120
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.16%................ 583,611
-----------
TOTAL NET ASSETS -- 100.00%.......... $50,370,731
===========
</TABLE>
- --------
* Variable rate security. Rate represents rate in effect at December 31, 1997.
Maturity date reflects next rate change date.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $601,559
Unrealized depreciation............................................. (51,258)
--------
Net unrealized appreciation......................................... $550,301
========
</TABLE>
AMT--Alternative Minimum Tax
LOC--Letter of Credit
AMBAC--AMBAC Indemnity Corporation
FGIC--Financial Guaranty Insurance Company
FHA--Insured by Federal Housing Authority
FNMA--Insured by Federal National Mortgage Association
FSA--Financial Security Assurance, Inc.
GEMIC--General Electric Mortgage Insurance Co.
GNMA--Insured by Government National Mortgage Association
MBIA--Municipal Bond Insurance Association
See accompanying notes to financial statements.
24
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Assets and Liabilities
December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SMALL
CAPITALIZATION INTERNATIONAL LIMITED DURATION
VALUE EQUITY GROWTH EQUITY EQUITY EQUITY MUNICIPAL BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -------------- ------------- ----------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Total cost
$119,767,710;
$155,256,139;
$108,180,490;
$152,532,900; and
$49,236,819
respectively)......... $138,685,801 $180,435,095 $125,922,382 $156,596,551 $49,787,120
Repurchase agreements,
at cost............... -- 397,000 10,019,015 -- --
------------ ------------ ------------ ------------ -----------
Total Investments, at
value................. 138,685,801 180,832,095 135,941,397 156,596 551 49,787,120
Cash................... 131,743 4,327 -- 521,787 --
Foreign currency (cost
$0, $0, $0, $792,619,
$0)................... -- -- -- 782,120 --
Net unrealized
appreciation on
foreign currency
exchange contracts.... -- -- -- 614,376 --
Interest and dividends
receivable............ 185,000 123,829 96,535 218,008 777,808
Receivable for capital
shares sold........... 1,456,271 -- -- -- --
Receivable from brokers
for investments sold.. -- 54,660 969,544 238,547 --
Foreign tax reclaim
receivable............ -- -- -- 186,362 --
Deferred organizational
expense............... 16,427 16,741 16,646 16,309 17,217
Prepaid expenses and
other assets.......... 7,546 11,295 10,422 8,916 2,382
------------ ------------ ------------ ------------ -----------
Total Assets......... 140,482,788 181,042,947 137,034,544 159,182,976 50,584,527
------------ ------------ ------------ ------------ -----------
LIABILITIES:
Cash Overdraft......... -- -- 620,889 -- --
Dividends payable...... -- -- -- -- 191,055
Payable for investments
purchased............. 249,688 700,563 1,489,673 2,718,591 --
Accrued expenses and
other payables:
Investment advisory
fees................. 35,192 45,110 50,656 52,802 8,218
Service fees.......... 11,731 15,037 11,257 13,200 3,287
Legal and audit fees.. 9,140 10,881 10,811 10,196 6,404
Other................. 88,517 39,495 -- 114,018 4,832
------------ ------------ ------------ ------------ -----------
Total Liabilities.... 394,268 811,086 2,183,286 2,908,807 213,796
------------ ------------ ------------ ------------ -----------
140,088,520 180,231,861 134,851,258 156,274,169 50,370,731
============ ============ ============ ============ ===========
COMPOSITION OF NET
ASSETS:
Capital Stock.......... 10,098 14,188 10,297 13,769 4,972
Additional paid-in
capital............... 116,685,483 153,191,011 113,670,076 151,783,222 50,023,479
Undistributed net
investment income..... 26,504 (4,218) 189,351 (3,787,966) --
Accumulated
undistributed net
realized gains/
(losses) from
investment
transactions and
foreign currency
translation........... 4,448,344 1,851,924 3,239,642 3,570,558 (208,021)
Net unrealized
appreciation from
investments
and foreign currency
translation........... 18,918,091 25,178,956 17,741,892 4,694,586 550,301
------------ ------------ ------------ ------------ -----------
NET ASSETS.............. $140,088,520 $180,231,861 $134,851,258 $156,274,169 $50,370,731
============ ============ ============ ============ ===========
SHARES OF BENEFICIAL
INTEREST:
Shares of beneficial
interest outstanding.. 10,097,676 14,187,741 10,297,287 13,763,690 4,971,677
============ ============ ============ ============ ===========
Net asset value--
offering and
redemption
price per share....... $13.87 $12.70 $13.10 $11.35 $10.13
============ ============ ============ ============ ===========
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Operations
For the Six Months Ended December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SMALL
CAPITALIZATION INTERNATIONAL LIMITED DURATION
VALUE EQUITY GROWTH EQUITY EQUITY EQUITY MUNICIPAL BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -------------- ------------- ----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........ $ 121,538 $ 91,131 $ 205,667 $ 286,879 $1,148,412
Dividend income (net of
foreign withholding
tax of $0, $0, $0,
$177,359, and $0,
respectively)......... 1,287,165 685,222 514,982 1,211,959 --
----------- ----------- ----------- ------------ ----------
Total Income......... 1,408,703 776,353 720,649 1,498,838 1,148,412
----------- ----------- ----------- ------------ ----------
EXPENSES:
Investment advisory
fees (Note 3)......... 199,992 270,823 299,500 308,299 44,668
Consulting fees
(Note 3).............. 33,322 45,138 33,278 38,538 11,167
Service fees (Note 3).. 66,663 90,274 66,555 77,074 19,989
Custodian and
accounting fees
(Note 3).............. 25,534 13,335 15,085 75,643 19,778
Legal and audit fees... 5,314 11,484 5,990 11,321 4,498
Deferred organization
expenses.............. 3,112 3,112 3,112 3,112 3,112
Registration and filing
fees.................. 8,990 7,721 5,550 9,220 6,230
Trustees' fees and
expenses.............. 2,106 2,724 2,149 2,475 863
Transfer agent fees
(Note 3).............. 3,500 1,775 3,859 6,550 1,358
Other expenses......... 6,277 8,528 13,538 9,278 2,811
----------- ----------- ----------- ------------ ----------
Total Expenses before
waivers and expenses
paid indirectly....... 354,820 454,914 448,616 541,510 114,474
Less: Expenses waived
by administrator.... -- -- -- -- (10,612)
Less: Expenses paid
indirectly.......... (7,266) (6,024) (1,564) (1,215) (5,110)
----------- ----------- ----------- ------------ ----------
Total Expenses....... 347,554 448,890 447,052 540,295 98,752
----------- ----------- ----------- ------------ ----------
Net Investment Income.. 1,061,149 327,463 273,597 958,543 1,049,660
----------- ----------- ----------- ------------ ----------
REALIZED AND UNREALIZED
GAINS (LOSSES) ON
INVESTMENTS:
Net realized gains
(losses) on
investments........... 10,715,018 28,035,231 9,072,232 1,459,848 (44,463)
Net change in
unrealized
appreciation/
depreciation of
investments........... (329,819) (6,045,941) 4,496,478 (12,988,172) 460,044
----------- ----------- ----------- ------------ ----------
Net realized/unrealized
gains (losses) on
investments........... 10,385,199 21,989,290 13,568,710 (11,528,324) 415,581
----------- ----------- ----------- ------------ ----------
Change in net assets
resulting from
operations............. $11,446,348 $22,316,573 $13,842,307 $(10,569,781) $1,465,241
=========== =========== =========== ============ ==========
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
THE HIRTLE CALLAGHAN TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
SMALL CAPITALIZATION
VALUE EQUITY PORTFOLIO GROWTH EQUITY PORTFOLIO EQUITY PORTFOLIO
-------------------------- -------------------------- --------------------------
FOR THE SIX YEAR FOR THE SIX YEAR FOR THE SIX YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997 1997 1997 1997 1997
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 1,061,149 $ 1,694,808 $ 327,463 $ 636,241 $ 273,597 $ 560,864
Net realized gains
(losses) from
investments and
foreign currency
transactions.......... 10,715,018 11,284,813 28,035,231 8,397,467 9,072,232 7,442,963
Net change in
unrealized
appreciation from
investments and
foreign currency
transactions.......... (329,819) 15,566,341 (6,045,941) 20,723,713 4,496,478 8,992,626
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
resulting from
operations............ 11,446,348 28,545,962 22,316,753 29,757,421 13,842,307 16,996,453
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (1,193,385) (1,536,068) (422,201) (545,676) (126,916) (518,366)
From net realized
gains................. (10,715,018) (4,971,574) (28,035,231) (567,013) (9,072,232) (1,532,810)
In excess of realized
capital gains......... (5,194,616) -- (4,302,099) -- (3,664,949) --
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from shareholder
distributions......... (17,103,019) (6,507,642) (32,759,531) (1,112,689) (12,884,097) (2,051,176)
------------ ------------ ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 24,256,574 33,669,862 18,916,419 42,079,726 18,427,481 44,305,033
Dividends reinvested... 15,479,213 6,067,655 30,706,260 972,424 11,589,508 1,812,353
Cost of shares
redeemed.............. (11,082,277) (16,186,788) (19,909,280) (21,272,202) (9,603,469) (9,085,673)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from capital
transactions.......... 28,653,510 23,550,729 29,713,399 21,779,948 20,413,520 37,031,713
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets... 22,996,839 45,589,049 19,270,621 50,424,680 21,371,730 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.......... $140,088,520 $117,091,681 $180,231,861 $160,961,240 $134,851,258 $113,479,528
============ ============ ============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
THE HIRTLE CALLAGHAN TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
INTERNATIONAL LIMITED DURATION
EQUITY PORTFOLIO MUNICIPAL BOND PORTFOLIO
-------------------------- --------------------------
FOR THE SIX YEAR FOR THE SIX YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997 1997 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 958,543 $ 2,087,933 $ 1,049,660 $ 1,577,857
Net realized gains
(losses) from
investments and
foreign currency
transactions.......... 1,459,848 7,069,870 (44,463) (114,094)
Net change in
unrealized
appreciation
(depreciation) from
investments and
foreign currency
transactions.......... (12,988,172) 12,845,826 460,044 176,715
------------ ------------ ------------ ------------
Change in net assets
resulting from
operations............ (10,569,781) 22,003,629 1,465,241 1,640,478
------------ ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (4,275,939) (2,087,933) (1,049,660) (1,577,856)
In excess of net
investment income..... -- (470,570) -- --
From net realized
gains................. (1,459,848) (2,559,827) -- --
In excess of realized
capital gains......... (2,758,083) -- -- --
------------ ------------ ------------ ------------
Change in net assets
from shareholder
distributions......... (8,493,870) (5,118,330) (1,049,660) (1,577,856)
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 28,121,673 58,555,291 31,100,841 59,269,604
Dividends reinvested... 7,647,820 4,492,529 853,980 1,406,537
Cost of shares
redeemed.............. (6,553,625) (11,543,042) (22,962,453) (49,260,726)
------------ ------------ ------------ ------------
Change in net assets
from capital
transactions.......... 29,215,868 51,504,778 8,992,368 11,415,415
------------ ------------ ------------ ------------
Change in net assets... 10,152,217 68,390,077 9,407,949 11,478,037
NET ASSETS:
Beginning of period.... 146,121,952 77,731,875 40,962,782 29,484,745
------------ ------------ ------------ ------------
End of period.......... $156,274,169 $146,121,952 $ 50,370,731 $ 40,962,782
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements -- December 31, 1997 (Unaudited)
1. DESCRIPTION. The Hirtle Callaghan Trust (the "Trust") was organized in
Delaware 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, which have not yet commenced operations, is currently pending
with the Securities and Exchange Commission. The Trust is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-ended
management series investment company. Each Portfolio operates as a diversified
fund.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies followed by the Portfolios:
A. Portfolio Valuation. The net asset value per share of the Portfolios
is determined once on each Business Day as of the close of the New York
Stock Exchange, which is normally 4 p.m. Eastern Time. Each Portfolio's net
asset value per share is calculated by adding the value of all securities
and other assets of the Portfolio, subtracting its liabilities and dividing
the result by the number of its outstanding shares. In valuing the Trust's
assets for calculating net asset value, readily marketable portfolio
securities listed on a national securities exchange or on NASDAQ are valued
at the last sale price on the business day as of which such value is being
determined. If there have been no sales on such exchange or on NASDAQ on
such day, the security is valued at the closing bid price on such day.
Readily marketable securities traded only in the over-the-counter market
and not on NASDAQ are valued at the current or last bid price. If no bid is
quoted on such day, the security is valued by such method as the Trust's
Board of Trustees ("the Board") shall determine in good faith to reflect
the security's fair value. All other assets of each portfolio are valued in
such manner as the Board in good faith deems appropriate to reflect their
fair value. Short-term obligations with maturities of 60 days or less are
valued at amortized cost, which constitutes fair value as determined by the
Board. With the approval of the Board, any of the Portfolios may use a
pricing service, bank, or broker-dealer experienced in such matters to
value the Portfolio's securities.
B. Securities Transactions and Investment Income. Securities transactions
are recorded on a trade date basis. Realized gains and losses from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including
amortization of premium and accretion of discount on investments, is
accrued daily, as earned.
C. Dividend and Capital Gain Distributions to Shareholders. The Limited
Duration Portfolio declares dividends from net investment income daily and
distributes them on a monthly basis. The Value, Growth, and Small Cap
Portfolios declare and distribute dividends from net investment income on a
quarterly basis. The International Portfolio declares and distributes
dividends from net investment income on a semi-annual basis. Net realized
capital gains, if any, will be distributed at least annually for each
Portfolio.
D. Federal Income Taxes. It is the policy of each of the Portfolios to
qualify as a "regulated investment company" under Subchapter M of the
Internal Revenue Code of 1986, as amended. By so qualifying, the Portfolios
will not be subject to Federal income taxes to the extent that they
distribute all of their taxable and tax-exempt income for the fiscal year.
The Portfolios also intend to meet the distribution requirements to avoid
the payment of an excise tax. Accordingly, no provision for taxes is
recorded.
E. Repurchase Agreements. Among the instruments that each of the
Portfolios may use for temporary investment purposes are repurchase
agreements. Under the terms of a typical repurchase agreement, a Portfolio
29
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1997 (Unaudited)
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.
F. Organizational Expenses. Costs incurred in connection with the
organization and initial registration of the Portfolios have been deferred
and are being amortized on a straight-line basis over sixty months,
beginning with each Portfolio's commencement of operations. In the event
any of the initial shares of the Portfolios are redeemed during the
amortization period, the redemption proceeds will be reduced by a pro rata
portion of any unamortized organization expenses in the proportion as the
number of shares being redeemed bears to the number of initial shares
outstanding at the time of redemption.
G. Determination of Net Asset Value and Calculation of Expenses. Expenses
directly attributable to a Portfolio are charged to that Portfolio. Other
expenses are allocated proportionately among the Portfolios in relation to
the net assets of each Portfolio.
H. Foreign Exchange Transactions. The books and records of the Portfolios
are maintained in U.S. dollars. Non-U.S. denominated amounts are translated
into U.S. dollars as follows, with the resultant exchange gains and losses
recorded in the Statements of Operations:
(i) market value of investment securities and other assets and
liabilities at the exchange rate on the valuation date,
(ii) purchases and sales of investment securities, income and
expenses at the exchange rate prevailing on the respective date of
such transactions.
I. Use of Estimates. Estimates and assumptions are required to be made
regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets, and any other parameters used in
determining these estimates could cause results to differ from these
amounts.
J. Other. The Portfolios maintain cash balances with their custodian and
receive a reduction of their custody fees and expenses for the amount of
interest earned on such uninvested cash balances. For financial reporting
purposes, for the six month period ended December 31, 1997, the amounts
recorded on the Statement of Operations as reimbursement of expenses were
$7,266, $6,024, $1,564, $1,215 and $5,110 for the Value, Growth, Small Cap,
International and Limited Duration Portfolios, respectively.
3. INVESTMENT ADVISORY, CONSULTING AND ADMINISTRATIVE CONTRACTS. The Trust
has entered into investment advisory contracts (the "Portfolio Management
Contracts") on behalf of each of the Portfolios with one or more Investment
Managers. Each Investment Manager is responsible for providing a continuous
program of investment management to, and placing all orders for, purchase and
sale of securities and other instruments on behalf of the respective
Portfolios they serve. Each Investment Manager is paid a fee based on average
net assets, calculated and accrued daily and paid monthly at annual rates of
0.30% for the Value and Growth Portfolios, 0.45% for the Small Cap Portfolio,
0.40% for the International Portfolio, and 0.20% for the Municipal Bond
Portfolio. For the six month period ended December 31, 1997, the Investment
Managers earned fees of $199,992, $270,823,
30
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1997 (Unaudited)
$299,500, $308,299, and $44,668, for the Value, Growth, Small Cap,
International and Limited Duration Portfolios, respectively. As of February 2,
1998, the fee payable by the Value Portfolio to one of its Investment Managers
increased to 0.35%. Such increase was first approved by the Board of Trustees
at a meeting held on November 21, 1997 and by the shareholders of the Value
Portfolio on January 12, 1998.
The Investment Managers are as follows:
Value Portfolio -- Hotchkis & Wiley; Institutional Capital Corporation.
Growth Portfolio -- Jennison Associates LLP; Goldman Sachs Asset
Management.
Small Cap Portfolio -- Clover Capital Management, Inc.; Frontier
Capital Management Company.
International Portfolio -- Brinson Partners, Inc.
Limited Duration Portfolio -- Morgan Grenfell Capital Management
Incorporated.
Pursuant to a consulting agreement between the Trust and Hirtle Callaghan &
Company, Inc. ("HCCI") (the "HCCI Consulting Agreement"), HCCI is paid a fee
calculated and accrued daily and paid monthly at annual rates of 0.05% of
average net assets per Portfolio. HCCI makes its officers available to serve
as officers and/or Trustees of the Trust, provides office space sufficient for
the Trust's principal office, and monitors the performance of various
investment management organizations, including the Investment Managers. HCCI
does not have investment discretion with respect to Trust assets but is an
investment adviser to the Trust for purposes of the 1940 Act. For the six
month period ended December 31, 1997, HCCI earned fees of $33,322, $45,138,
$33,278, $38,538, and $11,167, for the Value, Growth, Small Cap, International
and Limited Duration Portfolios, respectively.
BISYS Fund Services ("BISYS") is responsible for providing the Portfolios
with administrative, fund accounting, dividend and capital gains distribution
disbursing and transfer agency services. Effective October 1, 1997, the
Administration Agreement, Transfer Agency Agreement and Fund Accounting
Agreement were amended to provide that BISYS would receive as compensation for
all administration, transfer agency and fund accounting services an all
inclusive fee ("Omnibus Fee") of 0.10% of the Portfolio's average daily net
assets attributable to the Value, Growth, Small Cap and International
Portfolios and 0.08% of the Portfolio's average daily net assets attributable
to the Limited Duration Municipal Bond Portfolio as well as any additional
fixed income portfolios created in the future plus any out-of-pocket costs.
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
daily net assets of the Trust. During the period July 1, 1997 through
September 30, 1997, the Limited Duration Portfolio waived all its fees in the
amount of $10,612. Transfer agency services and dividend and capital gain
disbursing agent services, were provided to the Trust pursuant to 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 certain out-of-pocket expenses. Portfolio accounting
services were provided to the Trust pursuant to 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
certain out-of-pocket expenses covering the services provided to all five
portfolios.
During the six month period ended December 31, 1997, the respective
Portfolios paid to BISYS, in the aggregate, service fees under applicable
agreements in the amount of $66,663 for the Value Portfolio; $90,274 for the
Growth Portfolio; $66,555 for the Small Cap Portfolio; $77,074 for the
International Portfolio; and $19,989 for the Limited Duration Portfolio.
31
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1997 (Unaudited)
4. PURCHASE AND SALE TRANSACTIONS. The aggregate amount of purchases and
sales of investment securities, other than short-term securities, for the six
month period ended December 31, 1997, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Value.................. $ 68,747,577 $ 55,965,188
Growth................. 111,786,196 114,808,167
Small Cap.............. 47,218,016 39,510,688
International.......... 45,948,745 25,842,794
Limited Duration....... 19,049,678 5,583,905
</TABLE>
5. CAPITAL SHARE TRANSACTIONS. The Trust is authorized to issue unlimited
shares of capital stock with a par value of $0.001 each. Transactions in
shares of the Portfolios for the six month period ended December 31, 1997,
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 sold............. 1,574,862 1,259,838 1,291,376 2,242,068 3,083,614
Shares issued in
reinvestment of
dividends and
distributions........... 1,117,038 2,465,729 909,261 671,310 84,702
Shares redeemed......... (719,579) (1,309,456) (663,596) (520,545) (2,278,034)
---------- ---------- ---------- ---------- ----------
Net increase in shares.. 1,972,321 2,416,111 1,537,041 2,392,833 890,282
---------- ---------- ---------- ---------- ----------
Ending balance.......... 10,097,676 14,187,741 10,297,287 13,768,690 4,971,677
========== ========== ========== ========== ==========
</TABLE>
Transactions in shares of the Portfolios for the year ended June 30, 1997,
were as follows:
<TABLE>
<CAPTION>
LIMITED
VALUE GROWTH SMALL CAP INTERNATIONAL DURATION
---------- ---------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Beginning balance....... 6,228,426 9,930,197 5,557,917 6,906,122 2,947,568
---------- ---------- --------- ---------- ----------
Shares sold............. 2,653,857 3,481,209 3,801,423 5,060,425 5,907,089
Shares issued in
reinvestment of
dividends and
distributions........... 491,934 78,400 151,374 382,178 140,290
Shares redeemed......... (1,248,862) (1,718,176) (750,468) (972,868) (4,913,552)
---------- ---------- --------- ---------- ----------
Net increase in shares.. 1,896,929 1,841,433 3,202,329 4,469,735 1,133,827
---------- ---------- --------- ---------- ----------
Ending balance.......... 8,125,355 11,771,630 8,760,246 11,375,857 4,081,395
========== ========== ========= ========== ==========
</TABLE>
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 foreign exchange contract is a commitment to sell or buy a foreign
currency at a future date at a negotiated exchange rate. The Portfolio bears
the market risk which arises from possible changes in foreign exchange values.
Risks may arise from the potential inability of counterparties to meet the
terms of their contracts and from unanticipated movements in the value of the
foreign currency relative to the U.S. dollar. Forward foreign exchange
contracts may involve market or credit risk in excess of the amounts reflected
on the Portfolio's statement of assets and liabilities.
32
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1997 (Unaudited)
The gain or loss from the difference between the cost of original contracts
and the amount realized upon closing of such contracts is included in net
realized gain on foreign currency transactions. Fluctuations in the value of
forward contracts held at December 31, 1997, are recorded for financial
reporting purposes as unrealized gains and losses by the Portfolio.
7. CAPITAL LOSS CARRYOVERS. As of June 30, 1997, the Limited Duration
Portfolio has capital loss carryforwards available to offset future capital
gains, if any, of $48,759 expiring in 2004 and $42,671 expiring in 2005.
33
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights
For a share outstanding throughout each period
(Unaudited)
<TABLE>
<CAPTION>
VALUE EQUITY PORTFOLIO GROWTH EQUITY PORTFOLIO
------------------------------------ ------------------------------------
SIX MONTHS YEAR PERIOD SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, JUNE 30, DECEMBER 31, JUNE 30, JUNE 30,
1997 1997 1996(A) 1997 1997 1996(B)
------------ -------- -------- ------------ -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 14.41 $ 11.48 $ 10.00 $ 13.67 $ 11.13 $ 10.00
-------- -------- ------- -------- -------- --------
Investment Activities
Net investment income... 0.11 0.23 0.22 0.03 0.06 0.04
Net realized and
unrealized gain on
investments
and foreign currency
transactions........... 1.26 3.65 1.51 1.80 2.58 1.13
-------- -------- ------- -------- -------- --------
Total from Investment
Activities............. 1.37 3.88 1.73 1.83 2.64 1.17
-------- -------- ------- -------- -------- --------
Distributions
From net investment
income................. (0.13) (0.21) (0.22) (0.03) (0.05) (0.04)
From net realized
gains.................. (1.20) (0.74) (0.03) (2.40) (0.05) --
In excess of realized
capital gains.......... (0.58) -- -- (0.37) -- --
-------- -------- ------- -------- -------- --------
Total Distributions..... (1.91) (0.95) (0.25) (2.80) (0.10) (0.04)
-------- -------- ------- -------- -------- --------
Net Asset Value, End of
Period.................. $ 13.87 $ 14.41 $ 11.48 $ 12.70 $ 13.67 $ 11.13
======== ======== ======= ======== ======== ========
Total Return............. 9.60%(d) 35.28%(d) 17.28%(d) 13.86%(d) 23.83%(d) 11.69%(d)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $140,089 $117,092 $71,503 $180,232 $160,961 $110,537
Ratio of expenses to
average net assets..... 0.52%(c) 0.63% 0.63%(c) 0.50%(c) 0.55% 0.63%(c)
Ratio of net investment
income to average net
assets................. 1.59%(c) 1.89% 2.55%(c) 0.36%(c) 0.49% 0.46%(c)
Ratio of expenses to
average net assets*.... 0.53%(c) 0.65% 0.68%(c) 0.50%(c) 0.55% 0.68%(c)
Portfolio Turnover
Rate................... 44.23%(d) 97.39% 92.00%(d) 64.44%(d) 80.47% 80.00%(d)
Average commission rate
paid (e)............... $ 0.0345 $ 0.0386 $ -- $ 0.0647 $ 0.0592 $ --
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition,
certain fees were voluntarily reimbursed. If such voluntary fee reductions
and reimbursements had not occurred, the ratios would have been as
indicated.
(a) For the period August 25, 1995 (commencement of operations) through June
30, 1996.
(b) For the period August 8, 1995 (commencement of operations) through June
30, 1996.
(c) Annualized.
(d) Not annualized
(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by the total number of shares purchased and sold by
the Portfolio for which commissions were charged. Disclosure is not
required for prior periods.
See accompanying notes to financial statements.
34
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights
For a share outstanding throughout each period
(Unaudited)
<TABLE>
<CAPTION>
SMALL CAPITALIZATION
EQUITY PORTFOLIO
------------------------------------
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
DECEMBER 31, JUNE 30, JUNE 30,
1997 1997 1996(A)
------------ -------- --------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.. $ 12.95 $ 11.07 $ 10.00
-------- -------- -------
Investment Activities
Net investment income................ 0.02 0.07 0.10
Net realized and unrealized gain on
investments and foreign currency
transactions........................ 1.50 2.11 1.07
-------- -------- -------
Total from Investment Activities..... 1.52 2.18 1.17
-------- -------- -------
Distributions
From net investment income........... (0.01) (0.07) (0.10)
From net realized gains.............. (0.97) (0.23) --
In excess of realized capital gains.. (0.39) -- --
-------- -------- -------
Total Distributions.................. (1.37) (0.30) (0.10)
-------- -------- -------
Net Asset Value, End of Period........ $ 13.10 $ 12.95 $ 11.07
======== ======== =======
Total Return.......................... 12.05%(c) 19.88%(c) 11.82%(c)
Ratios/Supplementary Data:
Net Assets at end of period (000).... $134,851 $113,480 $61,503
Ratio of expenses to average net
assets.............................. 0.67%(b) 0.78% 0.78%(b)
Ratio of net investment income to
average net assets.................. 0.41%(b) 0.68% 1.33%(b)
Ratio of expenses to average net
assets*............................. 0.67%(b) 0.78% 0.90%(b)
Portfolio Turnover Rate.............. 32.27%(c) 54.16% 38.00%(c)
Average commission rate paid (d)..... $0.0521 $ 0.0528 $ --
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition,
certain fees were voluntarily reimbursed. If such voluntary fee reductions
and reimbursements had not occurred, the ratios would have been as
indicated.
(a) For the period September 5, 1995 (commencement of operations) through June
30, 1996.
(b) Annualized.
(c) Not annualized
(d) Represents the total dollar amount of commissions paid on portfolio
transactions divided by the total number of shares purchased and sold by
the Portfolio for which commissions were charged. Disclosure is not
required for prior periods.
See accompanying notes to financial statements.
35
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights
For a share outstanding throughout each period
(Unaudited)
<TABLE>
<CAPTION>
LIMITED DURATION MUNICIPAL
INTERNATIONAL EQUITY PORTFOLIO BOND PORTFOLIO
---------------------------------- ---------------------------------
SIX MONTHS YEAR PERIOD SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, JUNE 30, DECEMBER 31, JUNE 30, JUNE 30,
1997 1997 1996(A) 1997 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
-------- -------- ------- ------- ------- -------
Investment Activities
Net investment income.. 0.02 0.22 0.16 0.24 0.48 0.35
Net realized and
unrealized gain on
investments
and foreign currency
transactions.......... (0.87) 1.92 1.35 0.09 0.04 0.01
-------- -------- ------- ------- ------- -------
Total from Investment
Activities............. (0.85) 2.14 1.51 0.33 0.52 0.36
-------- -------- ------- ------- ------- -------
Distributions
From net investment
income................. (0.32) (0.22) (0.24) (0.24) (0.48) (0.36)
In excess of net
investment income...... -- (0.04) -- -- -- --
From realized gains.... (0.11) (0.30) (0.01) -- -- --
In excess of realized
capital gains.......... (0.21) -- -- -- -- --
-------- -------- ------- ------- ------- -------
Total Distributions.... (0.64) (0.56) (0.25) (0.24) (0.48) (0.36)
-------- -------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 11.35 $ 12.84 $ 11.26 $ 10.13 $ 10.04 $ 10.00
======== ======== ======= ======= ======= =======
Total Return............ (6.56%)(e) 19.61% 15.15%(e) 3.31%(e) 5.34% 3.60%(e)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $156,274 $146,122 $77,732 $50,371 $40,963 $29,485
Ratio of expenses to
average net assets..... 0.70%(c) 0.78% 0.81%(c) 0.44%(c) 0.52% 0.53%(c)
Ratio of net investment
income to average net
assets................ 1.24%(c) 1.97% 1.75%(c) 4.70%(c) 4.78% 4.78%(c)
Ratio of expenses to
average net assets*.... 0.70%(c) 0.78% 0.92%(c) 0.51%(c) 0.68% 0.81%(c)
Portfolio Turnover
Rate................... 18.11%(e) 29.85% 15.00%(e) 14.60%(e) 44.57% 116.00%(e)
Average commission rate
paid (d)............... $ 0.0269 $ 0.0254 $ -- $ -- $ -- $ --
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition,
certain fees were voluntarily reimbursed. If such voluntary fee reductions
and reimbursements had not occurred, the ratios would have been as
indicated.
(a) For the period August 17, 1995 (commencement of operations) through June
30, 1996.
(b) For the period October 10, 1995 (commencement of operations) through June
30, 1996.
(c) Annualized.
(d) Represents the total dollar amount of commissions paid on portfolio
transactions divided by the total number of shares purchased and sold by
the Portfolio for which commissions were charged. Disclosure is not
required for prior periods.
(e) Not annualized.
See accompanying notes to financial statements.
36
<PAGE>
THE HIRTLE CALLAGHAN TRUST
TRUSTEES
DONALD E. CALLAGHAN*
JONATHAN J. HIRTLE*
ROSS H. GOODMAN
JARRETT B. KLING
DAVID M. SPUNGEN*
RICHARD W. WORTHAM
* "Interested Person" as that term is defined in the Investment Company Act of
1940.
- --------------------------------------------------------------------------------
SPONSOR COUNSEL
- ------- -------
Hirtle Callaghan & Company, Inc. Drinker Biddle & Reath L.L.P.
575 East Swedesford Road Philadelphia National Bank Building
Wayne, Pennsylvania 19087 1345 Chestnut Street
Philadelphia, Pennsylvania 19107
ADMINISTRATOR AND DISTRIBUTOR INDEPENDENT ACCOUNTANTS
- ----------------------------- -----------------------
BISYS Fund Services Coopers & Lybrand L.L.P.
3435 Stelzer Road 2400 Eleven Penn Center
Columbus, Ohio 43219 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.
