<PAGE> PAGE 1
000 B000000 06/30/98
000 C000000 0000944309
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 TIME HORIZON FUNDS
001 B000000 811-9024
001 C000000 8007225558
002 A000000 103 BELLEVUE PARKWAY
002 B000000 WILMINGTON
002 C000000 DE
002 D010000 19809
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 3
007 C010100 1
007 C020100 PORTFOLIO 1
007 C030100 N
007 C010200 2
007 C020200 PORTFOLIO 2
007 C030200 N
007 C010300 3
007 C020300 PORTFOLIO 3
007 C030300 N
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 BANK OF AMERICA
008 B00AA01 A
008 C00AA01 801-84000
008 D01AA01 SAN FRANCISCO
008 D02AA01 CA
008 D03AA01 94104
010 A00AA01 BANK OF AMERICA
010 C01AA01 SAN FRANCISCO
010 C02AA01 CA
010 C03AA01 94104
011 A00AA01 PROVIDENT DISTRIBUTORS, INC.
011 B00AA01 8-46564
011 C01AA01 WEST CONSHOHOCKEN
<PAGE> PAGE 2
011 C02AA01 PA
011 C03AA01 19428
011 C04AA01 2961
012 A00AA01 PFPC, INC.
012 B00AA01 84-0000
012 C01AA01 WILMINGTON
012 C02AA01 DE
012 C03AA01 19809
013 A00AA01 PRICE WATERHOUSECOOPERS
013 B01AA01 NEW YORK
013 B02AA01 NY
013 B03AA01 10036
014 A00AA01 DELETE
015 A00AA01 PNC BANK, N.A.
015 B00AA01 C
015 C01AA01 LESTER
015 C02AA01 PA
015 C03AA01 19113
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 25
019 C00AA00 PACHORIZON
020 A000001 INVESTMENT TECHNOLOGY GROUP INC.
020 B000001 95-4339369
020 C000001 10
020 A000002 DONALDSON LUFKIN, JENRETTE SEC.
020 B000002 13-2741729
020 C000002 8
020 A000003 SLOMAN BROTHERS
020 B000003 00-0000000
020 C000003 7
020 A000004 BOSTON INSTITUTIONAL SERVICES
020 B000004 04-2479358
020 C000004 6
020 A000005 MORGAN STANLEY GROUP
020 B000005 13-2655998
020 C000005 6
020 A000006 BERNSTEIN (SANFORD C.) & CO., INC.
020 B000006 13-2625874
020 C000006 6
020 A000007 PAINEWEBBER, INC.
020 B000007 13-2638166
020 C000007 5
020 A000008 BEAR STEARNS COMPANIES, INC.
020 B000008 13-3299429
020 C000008 4
020 A000009 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
020 B000009 13-5674085
020 C000009 4
020 A000010 OPPENHEIMER & CO., INC.
<PAGE> PAGE 3
020 B000010 13-2527171
020 C000010 4
021 000000 90
022 A000001 SPEAR, LEEDS & KELLOGG
022 B000001 13-5515160
022 C000001 22077
022 D000001 18691
022 A000002 CLARKE (G.X.) & CO.
022 B000002 13-2966143
022 C000002 16729
022 D000002 11322
022 A000003 BEAR STEARNS & CO., INC.
022 B000003 13-3299429
022 C000003 5512
022 D000003 2964
022 A000004 EVEREN SECURITIES INC.
022 B000004 34-1542819
022 C000004 4381
022 D000004 3716
022 A000005 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000005 13-5674085
022 C000005 3425
022 D000005 2626
022 A000006 CANTOR, FITZGERALD & CO., INC.
022 B000006 13-3680182
022 C000006 2073
022 D000006 3258
022 A000007 SANTANDER INVESTMENT SECURITIES, INC.
022 B000007 13-3777308
022 C000007 3160
022 D000007 2150
022 A000008 PAINE WEBBER INCORPORATED
022 B000008 13-2638166
022 C000008 1444
022 D000008 1303
022 A000009 BLAIR (WILLIAM) & CO.
022 B000009 36-2214610
022 C000009 1971
022 D000009 384
022 A000010 GOLDMAN SACHS & CO.
022 B000010 13-5108880
022 C000010 863
022 D000010 1234
023 C000000 140063
023 D000000 104851
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
<PAGE> PAGE 4
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 Y
041 00AA00 Y
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.600
048 A01AA00 0
048 A02AA00 0.000
048 B01AA00 0
048 B02AA00 0.000
048 C01AA00 0
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 0
048 K02AA00 0.000
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 Y
053 B00AA00 Y
053 C00AA00 N
054 A00AA00 N
054 B00AA00 N
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 N
054 I00AA00 N
<PAGE> PAGE 5
054 J00AA00 N
054 K00AA00 N
054 L00AA00 N
054 M00AA00 N
054 N00AA00 N
054 O00AA00 N
058 A00AA00 N
058 B00AA00 N
058 C00AA00 N
058 D00AA00 N
058 E00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 500
062 A00AA00 N
062 B00AA00 0.0
062 C00AA00 0.0
062 D00AA00 0.0
062 E00AA00 0.0
062 F00AA00 0.0
062 G00AA00 0.0
062 H00AA00 0.0
062 I00AA00 0.0
062 J00AA00 0.0
062 K00AA00 0.0
062 L00AA00 0.0
062 M00AA00 0.0
062 N00AA00 0.0
062 O00AA00 0.0
062 P00AA00 0.0
062 Q00AA00 0.0
062 R00AA00 0.0
063 A00AA00 0
063 B00AA00 0.0
066 A00AA00 Y
066 B00AA00 N
066 C00AA00 N
066 D00AA00 N
066 E00AA00 N
066 F00AA00 N
066 G00AA00 Y
067 00AA00 Y
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
070 A01AA00 Y
070 A02AA00 N
070 B01AA00 Y
070 B02AA00 N
070 C01AA00 Y
<PAGE> PAGE 6
070 C02AA00 N
070 D01AA00 Y
070 D02AA00 N
070 E01AA00 Y
070 E02AA00 N
070 F01AA00 Y
070 F02AA00 Y
070 G01AA00 Y
070 G02AA00 N
070 H01AA00 Y
070 H02AA00 N
070 I01AA00 Y
070 I02AA00 N
070 J01AA00 Y
070 J02AA00 N
070 K01AA00 Y
070 K02AA00 Y
070 L01AA00 Y
070 L02AA00 Y
070 M01AA00 Y
070 M02AA00 N
070 N01AA00 Y
070 N02AA00 N
070 O01AA00 Y
070 O02AA00 N
070 P01AA00 N
070 P02AA00 N
070 Q01AA00 N
070 Q02AA00 N
070 R01AA00 N
070 R02AA00 N
077 A000000 Y
077 B000000 Y
077 C000000 Y
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 Y
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
<PAGE> PAGE 7
080 A00AA00 CHUBB GROUP OF INSURANCE
080 C00AA00 4350
081 A00AA00 Y
081 B00AA00 22
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
024 000100 Y
025 A000101 MORGAN STANLEY DEAN WITTER DISCOVER & CO.
025 B000101 13-2655998
025 C000101 E
025 D000101 174
025 A000102 BEAR STEARNS COMPANIES, INC.
025 B000102 13-3299429
025 C000102 E
025 D000102 68
025 A000103 EDWARDS (AG) INC.
025 B000103 00-0000000
025 C000103 E
025 D000103 38
025 A000104 LEHMAN BROS. HOLDINGS, INC.
025 B000104 13-2518466
025 C000104 E
025 D000104 62
025 A000105 BEAR STEARNS COS, INC.
025 B000105 13-3299429
025 C000105 D
025 D000105 408
025 A000106 MERRILL LYNCH & CO.
025 B000106 13-5674085
025 C000106 D
025 D000106 350
025 A000107 MORGAN STANLEY DEAN WITTER DISCOVER & CO.
025 B000107 13-2655998
025 C000107 D
025 D000107 803
025 D000108 0
028 A010100 54
028 A020100 0
028 A030100 0
028 A040100 345
028 B010100 40
028 B020100 0
028 B030100 0
028 B040100 635
028 C010100 634
<PAGE> PAGE 8
028 C020100 0
028 C030100 0
028 C040100 881
028 D010100 434
028 D020100 0
028 D030100 0
028 D040100 815
028 E010100 148
028 E020100 0
028 E030100 0
028 E040100 597
028 F010100 40
028 F020100 0
028 F030100 0
028 F040100 360
028 G010100 1350
028 G020100 0
028 G030100 0
028 G040100 3633
028 H000100 0
029 000100 Y
030 A000100 0
030 B000100 0.00
030 C000100 0.00
031 A000100 0
031 B000100 0
032 000100 0
033 000100 0
034 000100 Y
035 000100 0
036 A000100 N
036 B000100 0
042 A000100 0
042 B000100 0
042 C000100 100
042 D000100 0
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 0
043 000100 194
044 000100 0
055 A000100 N
055 B000100 N
056 000100 Y
057 000100 N
071 A000100 24123
071 B000100 27521
071 C000100 39694
071 D000100 61
072 A000100 12
<PAGE> PAGE 9
072 B000100 1658
072 C000100 229
072 D000100 0
072 E000100 0
072 F000100 244
072 G000100 0
072 H000100 0
072 I000100 102
072 J000100 27
072 K000100 0
072 L000100 30
072 M000100 18
072 N000100 26
072 O000100 0
072 P000100 0
072 Q000100 30
072 R000100 14
072 S000100 28
072 T000100 236
072 U000100 5
072 V000100 0
072 W000100 77
072 X000100 837
072 Y000100 113
072 Z000100 1163
072AA000100 2721
072BB000100 0
072CC010100 909
072CC020100 0
072DD010100 557
072DD020100 556
072EE000100 1167
073 A010100 0.0000
073 A020100 0.0000
073 B000100 0.3526
073 C000100 0.0000
074 A000100 0
074 B000100 0
074 C000100 887
074 D000100 26173
074 E000100 0
074 F000100 11562
074 G000100 0
074 H000100 0
074 I000100 2038
074 J000100 34
074 K000100 0
074 L000100 299
074 M000100 23
074 N000100 41016
074 O000100 49
<PAGE> PAGE 10
074 P000100 46
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 202
074 S000100 0
074 T000100 40719
074 U010100 1650
074 U020100 1650
074 V010100 0.00
074 V020100 0.00
074 W000100 0.0000
074 X000100 2245
074 Y000100 0
075 A000100 0
075 B000100 40748
076 000100 0.00
024 000200 Y
025 A000201 MORGAN STANLEY DEAN WITTER DISCOVER & CO.
025 B000201 13-2655998
025 C000201 E
025 D000201 247
025 A000202 BEAR STEARNS COMPANIES, INC.
025 B000202 13-3299429
025 C000202 E
025 D000202 159
025 A000203 EDWARD (AG) INC.
025 B000203 00-0000000
025 C000203 E
025 D000203 98
025 A000204 LEHMAN BROS. HOLDINGS, INC.
025 B000204 13-2518466
025 C000204 E
025 D000204 54
025 A000205 BEAR STEARNS COS, INC.
025 B000205 13-3299429
025 C000205 D
025 D000205 408
025 A000206 MERRILL LYNCH & CO.
025 B000206 13-5674085
025 C000206 D
025 D000206 350
025 A000207 MORGAN STANLEY DEAN WITTER DISCOVER & CO.
025 B000207 13-2655998
025 C000207 D
025 D000207 268
025 D000208 0
028 A010200 124
028 A020200 0
028 A030200 0
<PAGE> PAGE 11
028 A040200 463
028 B010200 230
028 B020200 0
028 B030200 0
028 B040200 400
028 C010200 561
028 C020200 0
028 C030200 0
028 C040200 649
028 D010200 667
028 D020200 0
028 D030200 0
028 D040200 702
028 E010200 292
028 E020200 0
028 E030200 0
028 E040200 571
028 F010200 399
028 F020200 0
028 F030200 0
028 F040200 546
028 G010200 2273
028 G020200 0
028 G030200 0
028 G040200 3331
028 H000200 0
029 000200 Y
030 A000200 0
030 B000200 0.00
030 C000200 0.00
031 A000200 0
031 B000200 0
032 000200 0
033 000200 0
034 000200 Y
035 000200 0
036 A000200 N
036 B000200 0
042 A000200 0
042 B000200 0
042 C000200 100
042 D000200 0
042 E000200 0
042 F000200 0
042 G000200 0
042 H000200 0
043 000200 222
044 000200 0
055 A000200 N
055 B000200 N
056 000200 Y
<PAGE> PAGE 12
057 000200 N
071 A000200 28047
071 B000200 28430
071 C000200 46707
071 D000200 60
072 A000200 12
072 B000200 1541
072 C000200 413
072 D000200 0
072 E000200 0
072 F000200 288
072 G000200 0
072 H000200 0
072 I000200 120
072 J000200 29
072 K000200 0
072 L000200 37
072 M000200 22
072 N000200 30
072 O000200 0
072 P000200 0
072 Q000200 30
072 R000200 16
072 S000200 32
072 T000200 268
072 U000200 5
072 V000200 0
072 W000200 114
072 X000200 991
072 Y000200 149
072 Z000200 1112
072AA000200 3810
072BB000200 0
072CC010200 1632
072CC020200 0
072DD010200 492
072DD020200 491
072EE000200 1363
073 A010200 0.4270
073 A020200 0.4270
073 B000200 0.3690
073 C000200 0.0000
074 A000200 0
074 B000200 0
074 C000200 1178
074 D000200 23591
074 E000200 0
074 F000200 20759
074 G000200 0
074 H000200 0
074 I000200 4501
<PAGE> PAGE 13
074 J000200 49
074 K000200 0
074 L000200 287
074 M000200 22
074 N000200 50387
074 O000200 61
074 P000200 40
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 174
074 S000200 0
074 T000200 50112
074 U010200 1902
074 U020200 1902
074 V010200 0.00
074 V020200 0.00
074 W000200 0.0000
074 X000200 3374
074 Y000200 0
075 A000200 0
075 B000200 48014
076 000200 0.00
024 000300 Y
025 A000301 MORGAN STANLEY DEAN WITTER DISCOVER & CO.
025 B000301 13-2655998
025 C000301 E
025 D000301 420
025 A000302 BEAR STEARNS COMPANIES, INC.
025 B000302 13-3299429
025 C000302 E
025 D000302 182
025 A000303 EDWARDS (AG) , INC.
025 B000303 00-0000000
025 C000303 E
025 D000303 128
025 A000304 LEHMAN BROS. HOLDINGS, INC.
025 B000304 13-2518466
025 C000304 E
025 D000304 93
025 A000305 BEAR STEARNS COS., INC.
025 B000305 13-3299429
025 C000305 D
025 D000305 408
025 D000306 0
025 D000307 0
025 D000308 0
028 A010300 357
028 A020300 0
028 A030300 0
<PAGE> PAGE 14
028 A040300 425
028 B010300 242
028 B020300 0
028 B030300 0
028 B040300 609
028 C010300 709
028 C020300 0
028 C030300 0
028 C040300 716
028 D010300 808
028 D020300 0
028 D030300 0
028 D040300 670
028 E010300 614
028 E020300 0
028 E030300 0
028 E040300 809
028 F010300 195
028 F020300 0
028 F030300 0
028 F040300 931
028 G010300 2925
028 G020300 0
028 G030300 0
028 G040300 4160
028 H000300 0
029 000300 Y
030 A000300 0
030 B000300 0.00
030 C000300 0.00
031 A000300 0
031 B000300 0
032 000300 0
033 000300 0
034 000300 Y
035 000300 0
036 A000300 N
036 B000300 0
042 A000300 0
042 B000300 0
042 C000300 100
042 D000300 0
042 E000300 0
042 F000300 0
042 G000300 0
042 H000300 0
043 000300 249
044 000300 0
055 A000300 N
055 B000300 N
056 000300 Y
<PAGE> PAGE 15
057 000300 N
071 A000300 37452
071 B000300 36670
071 C000300 52174
071 D000300 70
072 A000300 12
072 B000300 1174
072 C000300 557
072 D000300 0
072 E000300 0
072 F000300 321
072 G000300 0
072 H000300 0
072 I000300 134
072 J000300 38
072 K000300 0
072 L000300 52
072 M000300 24
072 N000300 29
072 O000300 0
072 P000300 0
072 Q000300 30
072 R000300 19
072 S000300 30
072 T000300 304
072 U000300 4
072 V000300 0
072 W000300 144
072 X000300 1129
072 Y000300 185
072 Z000300 787
072AA000300 6000
072BB000300 0
072CC010300 2314
072CC020300 0
072DD010300 332
072DD020300 331
072EE000300 2091
073 A010300 0.0000
073 A020300 0.0000
073 B000300 0.5495
073 C000300 0.0000
074 A000300 4
074 B000300 0
074 C000300 773
074 D000300 19252
074 E000300 0
074 F000300 32201
074 G000300 0
074 H000300 0
074 I000300 4711
<PAGE> PAGE 16
074 J000300 98
074 K000300 0
074 L000300 241
074 M000300 21
074 N000300 57301
074 O000300 99
074 P000300 44
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 361
074 S000300 0
074 T000300 56797
074 U010300 1960
074 U020300 1959
074 V010300 0.00
074 V020300 0.00
074 W000300 0.0000
074 X000300 4538
074 Y000300 0
075 A000300 0
075 B000300 53597
076 000300 0.00
SIGNATURE MARY JANE MALONEY
TITLE MANAGER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000944309
<NAME> TIME HORIZON FUNDS
<SERIES>
<NUMBER> 011
<NAME> PORTFOLIO 1 - CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 36903082
<INVESTMENTS-AT-VALUE> 40660461
<RECEIVABLES> 332994
<ASSETS-OTHER> 22634
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 41016089
<PAYABLE-FOR-SECURITIES> 49268
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 248209
<TOTAL-LIABILITIES> 297477
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34406626
<SHARES-COMMON-STOCK> 3300434
<SHARES-COMMON-PRIOR> 3445511
<ACCUMULATED-NII-CURRENT> 581483
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1973124
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3757379
<NET-ASSETS> 40718612
<DIVIDEND-INCOME> 228993
<INTEREST-INCOME> 1657617
<OTHER-INCOME> 0
<EXPENSES-NET> (723825)
<NET-INVESTMENT-INCOME> 1162785
<REALIZED-GAINS-CURRENT> 2721056
<APPREC-INCREASE-CURRENT> 909002
<NET-CHANGE-FROM-OPS> 4792843
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1113457)
<DISTRIBUTIONS-OF-GAINS> (1167401)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 210931
<NUMBER-OF-SHARES-REDEEMED> (546854)
<SHARES-REINVESTED> 190846
<NET-CHANGE-IN-ASSETS> 709807
<ACCUMULATED-NII-PRIOR> 532155
<ACCUMULATED-GAINS-PRIOR> 419469
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 244463
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 836638
<AVERAGE-NET-ASSETS> 40748113
<PER-SHARE-NAV-BEGIN> 11.67
<PER-SHARE-NII> .45
<PER-SHARE-GAIN-APPREC> 1.09
<PER-SHARE-DIVIDEND> (.39)
<PER-SHARE-DISTRIBUTIONS> (.35)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.47
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000944309
<NAME> TIME HORIZON FUNDS
<SERIES>
<NUMBER> 012
<NAME> PORTFOLIO 1 - CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 36903082
<INVESTMENTS-AT-VALUE> 40660461
<RECEIVABLES> 332994
<ASSETS-OTHER> 22634
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 41016089
<PAYABLE-FOR-SECURITIES> 49268
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 248209
<TOTAL-LIABILITIES> 297477
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34406626
<SHARES-COMMON-STOCK> 3300434
<SHARES-COMMON-PRIOR> 3445511
<ACCUMULATED-NII-CURRENT> 581483
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1973124
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3757379
<NET-ASSETS> 40718612
<DIVIDEND-INCOME> 228993
<INTEREST-INCOME> 1657617
<OTHER-INCOME> 0
<EXPENSES-NET> (723825)
<NET-INVESTMENT-INCOME> 1162785
<REALIZED-GAINS-CURRENT> 2721056
<APPREC-INCREASE-CURRENT> 909002
<NET-CHANGE-FROM-OPS> 4792843
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1113457)
<DISTRIBUTIONS-OF-GAINS> (1167401)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 210931
<NUMBER-OF-SHARES-REDEEMED> (546854)
<SHARES-REINVESTED> 190846
<NET-CHANGE-IN-ASSETS> 709807
<ACCUMULATED-NII-PRIOR> 532155
<ACCUMULATED-GAINS-PRIOR> 419469
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 244463
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 836638
<AVERAGE-NET-ASSETS> 40748113
<PER-SHARE-NAV-BEGIN> 11.60
<PER-SHARE-NII> .31
<PER-SHARE-GAIN-APPREC> 1.05
<PER-SHARE-DIVIDEND> (.31)
<PER-SHARE-DISTRIBUTIONS> (.35)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.30
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000944309
<NAME> TIME HORIZON FUNDS
<SERIES>
<NUMBER> 013
<NAME> PORTFOLIO 1 - CLASS K
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 36903082
<INVESTMENTS-AT-VALUE> 40660461
<RECEIVABLES> 332994
<ASSETS-OTHER> 22634
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 41016089
<PAYABLE-FOR-SECURITIES> 49268
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 248209
<TOTAL-LIABILITIES> 297477
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34406626
<SHARES-COMMON-STOCK> 3300434
<SHARES-COMMON-PRIOR> 3445511
<ACCUMULATED-NII-CURRENT> 581483
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1973124
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3757379
<NET-ASSETS> 40718612
<DIVIDEND-INCOME> 228993
<INTEREST-INCOME> 1657617
<OTHER-INCOME> 0
<EXPENSES-NET> (723825)
<NET-INVESTMENT-INCOME> 1162785
<REALIZED-GAINS-CURRENT> 2721056
<APPREC-INCREASE-CURRENT> 909002
<NET-CHANGE-FROM-OPS> 4792843
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1113457)
<DISTRIBUTIONS-OF-GAINS> (1167401)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 210931
<NUMBER-OF-SHARES-REDEEMED> (546854)
<SHARES-REINVESTED> 190846
<NET-CHANGE-IN-ASSETS> 709807
<ACCUMULATED-NII-PRIOR> 532155
<ACCUMULATED-GAINS-PRIOR> 419469
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 244463
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 836638
<AVERAGE-NET-ASSETS> 40748113
<PER-SHARE-NAV-BEGIN> 11.61
<PER-SHARE-NII> .33
<PER-SHARE-GAIN-APPREC> 1.13
<PER-SHARE-DIVIDEND> (.38)
<PER-SHARE-DISTRIBUTIONS> (.35)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.34
<EXPENSE-RATIO> 1.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000944309
<NAME> TIME HORIZON FUNDS
<SERIES>
<NUMBER> 021
<NAME> PORTFOLIO 2 - CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 44235772
<INVESTMENTS-AT-VALUE> 50028827
<RECEIVABLES> 336008
<ASSETS-OTHER> 22493
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 50387328
<PAYABLE-FOR-SECURITIES> 61543
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 213677
<TOTAL-LIABILITIES> 275220
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 40616899
<SHARES-COMMON-STOCK> 3804158
<SHARES-COMMON-PRIOR> 3723120
<ACCUMULATED-NII-CURRENT> 583957
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3118197
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5793055
<NET-ASSETS> 50112108
<DIVIDEND-INCOME> 413023
<INTEREST-INCOME> 1541245
<OTHER-INCOME> 0
<EXPENSES-NET> (842698)
<NET-INVESTMENT-INCOME> 1111570
<REALIZED-GAINS-CURRENT> 3810224
<APPREC-INCREASE-CURRENT> 1632270
<NET-CHANGE-FROM-OPS> 6554064
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (983496)
<DISTRIBUTIONS-OF-GAINS> (1362943)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 397631
<NUMBER-OF-SHARES-REDEEMED> (506658)
<SHARES-REINVESTED> 190065
<NET-CHANGE-IN-ASSETS> 5148753
<ACCUMULATED-NII-PRIOR> 455883
<ACCUMULATED-GAINS-PRIOR> 670916
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 287990
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 991524
<AVERAGE-NET-ASSETS> 48013625
<PER-SHARE-NAV-BEGIN> 12.15
<PER-SHARE-NII> .40
<PER-SHARE-GAIN-APPREC> 1.46
<PER-SHARE-DIVIDEND> (.32)
<PER-SHARE-DISTRIBUTIONS> (.37)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.32
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000944309
<NAME> TIME HORIZON FUNDS
<SERIES>
<NUMBER> 022
<NAME> PORTFOLIO 2 - CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 44235772
<INVESTMENTS-AT-VALUE> 50028827
<RECEIVABLES> 336008
<ASSETS-OTHER> 22493
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 50387328
<PAYABLE-FOR-SECURITIES> 61543
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 213677
<TOTAL-LIABILITIES> 275220
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 40616899
<SHARES-COMMON-STOCK> 3804158
<SHARES-COMMON-PRIOR> 3723120
<ACCUMULATED-NII-CURRENT> 583957
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3118197
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5793055
<NET-ASSETS> 50112108
<DIVIDEND-INCOME> 413023
<INTEREST-INCOME> 1541245
<OTHER-INCOME> 0
<EXPENSES-NET> (842698)
<NET-INVESTMENT-INCOME> 1111570
<REALIZED-GAINS-CURRENT> 3810224
<APPREC-INCREASE-CURRENT> 1632270
<NET-CHANGE-FROM-OPS> 6554064
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (983496)
<DISTRIBUTIONS-OF-GAINS> (1362943)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 397631
<NUMBER-OF-SHARES-REDEEMED> (506658)
<SHARES-REINVESTED> 190065
<NET-CHANGE-IN-ASSETS> 5148753
<ACCUMULATED-NII-PRIOR> 455883
<ACCUMULATED-GAINS-PRIOR> 670916
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 287990
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 991524
<AVERAGE-NET-ASSETS> 48013625
<PER-SHARE-NAV-BEGIN> 12.05
<PER-SHARE-NII> .25
<PER-SHARE-GAIN-APPREC> 1.43
<PER-SHARE-DIVIDEND> (.24)
<PER-SHARE-DISTRIBUTIONS> (.37)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.12
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000944309
<NAME> TIME HORIZON FUNDS
<SERIES>
<NUMBER> 023
<NAME> PORTFOLIO 2 - CLASS K
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 44235772
<INVESTMENTS-AT-VALUE> 50028827
<RECEIVABLES> 336008
<ASSETS-OTHER> 22493
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 50387328
<PAYABLE-FOR-SECURITIES> 61543
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 213677
<TOTAL-LIABILITIES> 275220
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 40616899
<SHARES-COMMON-STOCK> 3804158
<SHARES-COMMON-PRIOR> 3723120
<ACCUMULATED-NII-CURRENT> 583957
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3118197
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5793055
<NET-ASSETS> 50112108
<DIVIDEND-INCOME> 413023
<INTEREST-INCOME> 1541245
<OTHER-INCOME> 0
<EXPENSES-NET> (842698)
<NET-INVESTMENT-INCOME> 1111570
<REALIZED-GAINS-CURRENT> 3810224
<APPREC-INCREASE-CURRENT> 1632270
<NET-CHANGE-FROM-OPS> 6554064
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (983496)
<DISTRIBUTIONS-OF-GAINS> (1362943)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 397631
<NUMBER-OF-SHARES-REDEEMED> (506658)
<SHARES-REINVESTED> 190065
<NET-CHANGE-IN-ASSETS> 5148753
<ACCUMULATED-NII-PRIOR> 455883
<ACCUMULATED-GAINS-PRIOR> 670916
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 287990
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 991524
<AVERAGE-NET-ASSETS> 48013625
<PER-SHARE-NAV-BEGIN> 12.03
<PER-SHARE-NII> .30
<PER-SHARE-GAIN-APPREC> 1.48
<PER-SHARE-DIVIDEND> (.30)
<PER-SHARE-DISTRIBUTIONS> (.37)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.14
<EXPENSE-RATIO> 1.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000944309
<NAME> TIME HORIZON FUNDS
<SERIES>
<NUMBER> 031
<NAME> PORTFOLIO 3 - CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 48819950
<INVESTMENTS-AT-VALUE> 56937294
<RECEIVABLES> 338684
<ASSETS-OTHER> 24872
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 57300850
<PAYABLE-FOR-SECURITIES> 98476
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 405387
<TOTAL-LIABILITIES> 503863
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 43305057
<SHARES-COMMON-STOCK> 3918803
<SHARES-COMMON-PRIOR> 3754891
<ACCUMULATED-NII-CURRENT> 417204
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4957382
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8117344
<NET-ASSETS> 56796987
<DIVIDEND-INCOME> 556407
<INTEREST-INCOME> 1173766
<OTHER-INCOME> 0
<EXPENSES-NET> (943629)
<NET-INVESTMENT-INCOME> 786544
<REALIZED-GAINS-CURRENT> 6000121
<APPREC-INCREASE-CURRENT> 2313634
<NET-CHANGE-FROM-OPS> 9100299
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (662644)
<DISTRIBUTIONS-OF-GAINS> (2091115)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 475389
<NUMBER-OF-SHARES-REDEEMED> (574695)
<SHARES-REINVESTED> 208884
<NET-CHANGE-IN-ASSETS> 8432990
<ACCUMULATED-NII-PRIOR> 293304
<ACCUMULATED-GAINS-PRIOR> 1048376
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 321440
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1128866
<AVERAGE-NET-ASSETS> 53597332
<PER-SHARE-NAV-BEGIN> 12.95
<PER-SHARE-NII> .31
<PER-SHARE-GAIN-APPREC> 2.18
<PER-SHARE-DIVIDEND> (.23)
<PER-SHARE-DISTRIBUTIONS> (.55)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.66
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000944309
<NAME> TIME HORIZON FUNDS
<SERIES>
<NUMBER> 032
<NAME> PORTFOLIO 3 - CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 48819950
<INVESTMENTS-AT-VALUE> 56937294
<RECEIVABLES> 338684
<ASSETS-OTHER> 24872
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 57300850
<PAYABLE-FOR-SECURITIES> 98476
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 405387
<TOTAL-LIABILITIES> 503863
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 43305057
<SHARES-COMMON-STOCK> 3918803
<SHARES-COMMON-PRIOR> 3754891
<ACCUMULATED-NII-CURRENT> 417204
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4957382
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8117344
<NET-ASSETS> 56796987
<DIVIDEND-INCOME> 556407
<INTEREST-INCOME> 1173766
<OTHER-INCOME> 0
<EXPENSES-NET> (943629)
<NET-INVESTMENT-INCOME> 786544
<REALIZED-GAINS-CURRENT> 6000121
<APPREC-INCREASE-CURRENT> 2313634
<NET-CHANGE-FROM-OPS> 9100299
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (662644)
<DISTRIBUTIONS-OF-GAINS> (2091115)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 475389
<NUMBER-OF-SHARES-REDEEMED> (574695)
<SHARES-REINVESTED> 208884
<NET-CHANGE-IN-ASSETS> 8432990
<ACCUMULATED-NII-PRIOR> 293304
<ACCUMULATED-GAINS-PRIOR> 1048376
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 321440
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1128866
<AVERAGE-NET-ASSETS> 53597332
<PER-SHARE-NAV-BEGIN> 12.86
<PER-SHARE-NII> .16
<PER-SHARE-GAIN-APPREC> 2.12
<PER-SHARE-DIVIDEND> (.15)
<PER-SHARE-DISTRIBUTIONS> (.55)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.44
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000944309
<NAME> TIME HORIZON FUNDS
<SERIES>
<NUMBER> 033
<NAME> PORTFOLIO 3 - CLASS K
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 48819950
<INVESTMENTS-AT-VALUE> 56937294
<RECEIVABLES> 338684
<ASSETS-OTHER> 24872
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 57300850
<PAYABLE-FOR-SECURITIES> 98476
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 405387
<TOTAL-LIABILITIES> 503863
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 43305057
<SHARES-COMMON-STOCK> 3918803
<SHARES-COMMON-PRIOR> 3754891
<ACCUMULATED-NII-CURRENT> 417204
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4957382
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8117344
<NET-ASSETS> 56796987
<DIVIDEND-INCOME> 556407
<INTEREST-INCOME> 1173766
<OTHER-INCOME> 0
<EXPENSES-NET> (943629)
<NET-INVESTMENT-INCOME> 786544
<REALIZED-GAINS-CURRENT> 6000121
<APPREC-INCREASE-CURRENT> 2313634
<NET-CHANGE-FROM-OPS> 9100299
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (662644)
<DISTRIBUTIONS-OF-GAINS> (2091115)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 475389
<NUMBER-OF-SHARES-REDEEMED> (574695)
<SHARES-REINVESTED> 208884
<NET-CHANGE-IN-ASSETS> 8432990
<ACCUMULATED-NII-PRIOR> 293304
<ACCUMULATED-GAINS-PRIOR> 1048376
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 321440
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1128866
<AVERAGE-NET-ASSETS> 53597332
<PER-SHARE-NAV-BEGIN> 12.89
<PER-SHARE-NII> .18
<PER-SHARE-GAIN-APPREC> 2.21
<PER-SHARE-DIVIDEND> (.22)
<PER-SHARE-DISTRIBUTIONS> (.55)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.51
<EXPENSE-RATIO> 1.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
EXHIBIT INDEX
EXHIBIT A - Attachment to item 77B: Accountant's report on internal
control
EXHIBIT B - Attachment to item 77C: Submission of matters to a vote
of security holders.
EXHIBIT C - Attachment to item 77K: Changes in registrant's certifying
accountant
EXHIBIT D - Attachment to item 77Q1(a): Written instrument amending the
declaration of trust
- ------------------------------------------------------------------------
EXHIBIT A
Report of Independent Accountants
August 14, 1998
To the Trustees and Shareholders of
Time Horizon Funds
In planning and performing our audit of the financial statements of Time
Horizon Funds for the year ended June 30, 1998, we considered its
internal control, including control activities for safeguarding securities,
in order to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and to comply with the requirements
of Form N-SAR, not to provide assurance on internal control.
The management of Time Horizon Funds is responsible for establishing and
maintaining internal control. In fulfilling this responsibility, estimates
and judgments by management are required to assess the expected benefits
and related costs of controls. Generally, controls that are relevant to
an audit pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in conformity
with generally accepted accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition, use or
disposition.
Because of inherent limitations in internal control, errors or fraud may
occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce
to a relatively low level the risk that misstatements caused by error or
fraud in amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned
functions. However, we noted no matters involving internal control and
its operation, including controls for safeguarding securities, that we
consider to be material weaknesses as defined above as of June 30, 1998.
This report is intended solely for the information and use of management
and the Trustees of Time Horizon Funds and the Securities and Exchange
Commission.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
- ------------------------------------------------------------------------
EXHIBIT B
TIME HORIZON FUNDS
Results (Unaudited) of Special Shareholder Meeting
Held on June 26, 1998
On June 26, 1998, a special meeting of shareholders of Time Horizon Funds
(the "Trust") was held in order to vote on the following proposals:
to elect six Trustees to the Board of Trustees;
to approve an Investment Advisory Agreement between the Trust and Bank
of America NT&SA;
to approve a new investment advisory agreement between the Trust and
Bank of America NT&SA in connection with the merger of BankAmerica
Corporation and NationsBank Corporation; and
to approve the selection of Price Waterhouse LLP as the Trust's
independent auditors for the current fiscal year.
The voting results for each proposal are shown below:
Proposal Vote Shares Shares In Favor Opposed Abstained/
Basis* Out- Represent- Withheld
Standing ed at the
Meeting
PROPOSAL 1 BY TRUST
11,201,304 10,531,504
Edward S.
Bottum 10,370,264 0 161,240
William P.
Carmichael 10,372,590 0 158,914
Thomas M.
Collins 10,378,355 0 153,149
Douglas B.
Fletcher 10,379,791 0 151,713
Robert E.
Greeley 10,379,791 0 151,713
Cornelius
J. Pings 10,379,791 0 151,713
PROPOSAL 2 BY FUND
TH1 3,397,265 3,024,574 2,980,027 6,646 37,901
TH2 3,839,894 3,627,147 3,568,099 19,710 39,388
TH3 3,964,143 3,879,759 3,813,311 14,343 52,104
PROPOSAL 3 BY FUND
TH1 3,397,265 3,024,574 2,978,462 2,730 43,381
TH2 3,839,894 3,627,147 3,570,577 21,835 34,735
TH3 3,964,143 3,879,759 3,815,068 23,422 41,269
PROPOSAL 4 BY TRUST
11,201,304 10,531,504 10,381,124 40,169 110,211
* KEY:
Trust = Time Horizon Funds
TH1 = Time Horizon Portfolio 1
TH2 = Time Horizon Portfolio 2
TH3 = Time Horizon Portfolio 3
- ------------------------------------------------------------------------
EXHIBIT C
August 25, 1998
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Gentlemen:
We have read the statements made by Time Horizon Funds (copy attached),
which we understand will be filed with the Commission, pursuant to Item 77K
of Form N-SAR, as part of the Funds filing on Form N-SAR for the year ended
June 30, 1998. We agree with the statements concerning our Firm in such
Form N-SAR.
Very truly yours,
/s/Ernst & Young LLP
Ernst & Young LLP
Attachment
On June 26, 1998, the Board of Trustees (the "Board") of Time Horizon Funds
(the "Fund") determined not to renew it's contract with Ernst & Young LLP
("E&Y") as the Trust's independent accountants, instead choosing the firm
of PricewaterhouseCoopers LLP to serve in that capacity. E&Y's reports on
the financial statements of the Fund for the two most recent fiscal years
contained no adverse opinions, or opinions that were qualified in any way,
nor were there any disagreements with E&Y during those periods on any
matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure.
- ------------------------------------------------------------------------
EXHIBIT D
TIME HORIZON FUNDS
WRITTEN INSTRUMENT AMENDING THE DECLARATION OF TRUST
The undersigned, being all of the trustees of Time Horizon Funds (the
"Trust"), a business trust organized pursuant to a Declaration of Trust
dated April 12, 1995 (the "Declaration of Trust"), pursuant to Section
9.3(a) of Article IX of the Declaration of Trust, do hereby amend the
Declaration of Trust as follows:
FIRST: The Declaration of Trust is hereby amended by striking out
Section 2.2 of Article II of the Declaration of Trust in its entirety and
inserting in lieu thereof the following:
2.2 Term and Election. Each Trustee named herein, or elected or
appointed prior to the first meeting of the Holders, shall (except in
the event of resignations or removals or vacancies pursuant to Section
2.3 or 2.4 hereof), hold office during the lifetime of the Trust, until
the next meeting of the Holders, if any, called for the purpose of
considering the election or re-election of such Trustee or of a
successor to such Trustee, and until the election and qualification of
his successor, if any, elected at such meeting, or until such Trustee
is removed as provided in Section 2.3 below or his term expires
pursuant to Section 2.4 hereof.
SECOND: The Declaration of Trust is hereby amended by striking out
Section 2.4 of Article II of the Declaration of Trust in its entirety and
inserting in lieu thereof the following:
2.4 Vacancies. The term of office of a Trustee, as defined in
Section 2.2 hereof, shall terminate and a vacancy shall occur in the
event of the earliest to occur of the following: the Trustee's death,
resignation, adjudicated incompetence or other incapacity to perform
the duties of the office, or removal, of the Trustee. A vacancy shall
also occur in the event of an increase in the number of trustees as
provided in Section 2.1. No such vacancy shall operate to annul this
Declaration or to revoke any existing trust created pursuant to the
terms of this Declaration. In the case of a vacancy, the Holders of a
plurality of the Interests entitled to vote, acting at any meeting of
the Holders held in accordance with Article VIII hereof, or, to the
extent permitted by the 1940 Act, a majority vote of the Trustees
continuing in office acting by written instrument or instruments, may
fill such vacancy, and any Trustee so elected by the Trustees or the
Holders shall hold office as provided in this Declaration. There shall
be no cumulative voting by the Holders in the election of Trustees.
IN WITNESS WHEREOF, the undersigned have this 2nd day of April, 1998
signed these presents.
_________________
Edward S. Bottum
_________________
William P. Carmichael
_________________
Robert E. Greeley
_________________
John P. Privat
