TOMORROW FUNDS
RETIREMENT TRUST
A Lifecycle Retirement Program
Annual Report
DECEMBER 31, 1996
TOMORROW LONG-TERM RETIREMENT FUND
TOMORROW MEDIUM-TERM RETIREMENT FUND
TOMORROW SHORT-TERM RETIREMENT FUND
CORE LARGE-CAP STOCK FUND
CORE SMALL-CAP STOCK FUND
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Table of Contents
Chairman's Letter ................................ 1
Average Annual Total Return ...................... 2
Ten Largest Holdings ............................ 5
Schedules of Investments
Core Large Cap Stock Fund................... 6
Core Small Cap Stock Fund................... 9
Tomorrow Long-Term Retirement Fund.......... 14
Tomorrow Medium-Term Retirement Fund ....... 23
Tomorrow Short-Term Retirement Fund ........ 31
Statements of Assets and Liabilities............ 38
Statements of Operations ....................... 39
Statements of Changes in Net Assets ............ 40
Notes to Financial Statements .................. 41
Financial Highlights ........................... 47
Independent Auditor's Report.................... 48
<PAGE>
DEAR SHAREHOLDER:
Continued low inflation, a cooling economy (3rd quarter growth of 2.0%),
declining interest rates, and healthy profit margins set the stage for yet
another strong increase in the market in the 4th quarter of 1996.
Record cash flows into equity mutual funds helped November's 7.6% rise in the
S&P 500 replace September's 5.6% gain as the strongest monthly performance since
December 1991. The market's fourth quarter return of 8.4% was the eighth
straight 3% or greater quarterly gain. Since January 1995, the S&P 500 has
returned an astonishing 68.9%.
In December cautionary comments on the current bull market by Fed Chairman
Greenspan tempered to some degree the prevailing market optimism, and resulted
in an increase in market volatility similar to what we saw in July.
Since their inception in March 1996 the Tomorrow Short Term, Medium Term and
Long Term Retirement Funds have performed slightly below their benchmark
allocations of fixed income, domestic and international equities. The Core Small
Cap Fund had a very strong 1996, outperforming its benchmark, the Russell 2000,
by over four percentage points. Since its inception in February 1996, the Core
Large Cap Fund slightly underperformed the S&P 500.
The Tomorrow Funds utilize a highly structured quantitative process in the
domestic equity allocations. The objective of the process is to maximize return
while minimizing investment risk as well as style and capitalization drift.
Historically, this risk-averse strategy has fared well relative to the markets
over a market cycle, and has underperformed when stock prices rise sharply.
Given the powerful up market of 1995-96, the slight underperformance of the
Funds is consistent with our long term goal of reducing risk.
Weiss, Peck & Greer is committed to helping you invest wisely prior to and
during your retirement. The Tomorrow Retirement Funds were created to simplify
investment decision making and help you enjoy today. We wish you and your family
a happy, healthy and prosperous 1997.
Sincerely,
/s/ Roger J. Weiss
Roger J. Weiss
Chairman of the Board
January 15, 1997
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Average Annual Total Return
CORE LARGE-CAP
The Tomorrow Fund Large-Cap portfolio underperformed the S&P 500 in 1996 with a
return of 15.4% as compared to the index's return of 16.9% over the same period.
This year's extended and unusually powerful run in the market, coming at the end
of a long economic cycle, was an inhospitable environment for the Fund's risk
control strategy. The strongly defensive character of the strategy caused the
risk controlled portfolio to lag its benchmark during this extended run.
[Graph shown here]
Average Annual Total Return
(for the period February 6, 1996 (commencement of
operations) through December 31, 1996
<TABLE>
<S> <C>
CORE LARGE-CAP..................... 15.35
S&p 500............................ 16.39%
</TABLE>
CORE SMALL-CAP
The Tomorrow Fund Small-Cap portfolio outperformed the Russell 2000 in 1996 with
a 17.7% return vs. the benchmark's 13.6% return.
The Fund uses a highly quantitative strategy that focuses on minimizing the
total risk of the investment portfolio. In 1996 this focus resulted in a value
tilt to the portfolio as well as concentrations in the real property and
mortgage industries. The strong performance of the financial sector in
conjunction with small cap value stocks outperforming growth in 1996, were the
primary contributors to the Fund's strong performance relative to the Russell
2000.
[Graph shown here]
Average Annual Total Return
(for the period February 6, 1996 (commencement of
operations) through December 31, 1996
<TABLE>
<S> <C>
CORE SMALL-CAP..................... 17.70%
S&P 500............................ 13.63%
</TABLE>
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Average Annual Total Return
LONG, MEDIUM & SHORT TERM
TOMORROW FUNDS
In 1996 the Adviser class of each Tomorrow Life Cycle Fund, which consist of a
blended allocation of domestic and international equities and fixed income
instruments, underperformed their respective benchmarks by an average of 1.8%.
Performance for the Institutional class will vary from the Adviser class due to
differences in expenses charged to their class.
The domestic equity portfolios comprise the largest allocation in the Life
Cycle Tomorrow Funds. These portfolios utilize the same risk control strategy
employed in the Large and Small Cap Tomorrow Funds. This risk-averse strategy
has historically performed well relative to the markets over a market cycle and
have underperformed in sharply rising markets. Given the powerful up market of
1995-1996 the underperformance in the Funds is consistent with our long term
goal of reducing volatility.
[Graph shown here]
Average Annual Total Return
(Inception through December 31, 1996)
<TABLE>
<S> <C>
TOMORROW LONG-TERM
(Adviser Class)............... 9.08+
(Institutional Class)......... 9.03%++
Tomorrow Long-Term Benchmark..... 11.00%
[Graph shown here]
Average Annual Total Return
(Inception through December 31, 1996)
TOMORROW MEDIUM-TERM
(Adviser Class)............... 8.89+
(Institutional Class)......... 8.54%++
Tomorrow Long-Term Benchmark..... 10.53%
[Graph shown here]
Average Annual Total Return
(Inception through December 31, 1996)
TOMORROW SHORT-TERM
(Adviser Class)............... 8.54+
(Institutional Class)......... 8.23%++
Tomorrow Long-Term Benchmark..... 10.39%
<FN>
+ Inception March 7, 1996.
++ Inception April 2, 1996.
</FN>
</TABLE>
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Average Annual Total Return
Performance represents historical data. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Each Fund's
results and their indices assume the reinvestment of all capital gain
distributions and income dividends. Each Fund's past performance is not
indicative of future performance and should be considered in light of each
Fund's investment policy and objectives, the characteristics and quality of its
portfolio securities and the periods selected. The S&P 500 Stock Index and the
S&P 400 MidCap Stock Index are each broad based measurement of changes in stock
market conditions based on the average performance of 500 and 400, respectively,
widely held common stocks. The Russell 2000 Growth Index is a measurement of
changes in stock market conditions based on the average performance of small
U.S. growth oriented securities with a median market capitalization of
approximately $200 million. The Lehman Government Corporate Index is a market
weighted blend of all U.S. Government securities and all U.S. Corporate
securities. The Morgan Stanley Capital International Europe, Australia, Far East
("EAFE") is an index of more than 800 companies in Europe, Australia and the Far
East.
The benchmarks used by the Long-Term Retirement Fund, Medium-Term Retirement
Fund and Short-Term Retirement Fund are each comprised of an allocated portion
of several of the above mentioned indices. The allocated portions are as
follows:
<TABLE>
<S> <C> <C> <C>
Long- Medium- Short
Term Term Term
S&P 500 30% 35% 40%
S&P 400 MidCap 20% 15% 10%
Russell 2000 Growth 25% 15% 10%
Lehman Government Corporate 20% 30% 40%
EAFE 5% 5% 0%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOMORROW FUNDS RETIREMENT TRUST
Ten Largest Holdings at December 31, 1996*
<S> <C> <C>
Market Percent
Core Large-Cap Value of Fund
Exxon Corp................................... $64,680 4.1%
Royal Dutch Petroleum Co ADR................. 47,298 3.0%
Standard & Poor's Depositary
Receipt.................................. 44,362 2.8%
Lilly Eli & Co.............................. 29,492 1.9%
Mobil Corp................................... 28,362 1.8%
GTE Corp..................................... 26,481 1.7%
Bristol-Myers Squibb Co...................... 26,426 1.7%
Eastman Kodak Co............................. 25,038 1.6%
International Business Machines
Corp.................................... 23,707 1.5%
Amoco Corp................................... 23,579 1.5%
$339,425 21.6%
Market Percent
Core Small-Cap Value of Fund
BRE Properties Inc........................... $10,568 0.5%
Home Beneficial Corp......................... 6,780 0.4%
Financial Trust Corp......................... 6,699 0.4%
IWC Resources Corp........................... 6,567 0.3%
Citizens Bancorp Maryland.................. 6,200 0.3%
Boole & Babbage Inc.......................... 6,025 0.3%
Ekco Group Inc............................... 5,998 0.3%
Liberty Bancorp Inc.......................... 5,920 0.3%
SPX Corp..................................... 5,890 0.3%
Interstate Bakeries Corp..................... 5,846 0.3%
$66,493 3.4%
Long-Term Retirement
US Treasury Note
5.500%, Due 11/15/98..................... $120,187 9.5%
US Treasury Note
6.500%, Due 8/15/05...................... 98,628 7.8%
Exxon Corp .................................. 91,140 7.2%
Standard & Poor's Depositary
Receipt................................... 57,302 4.6%
BT EAFE Equity Index Fund.................... 53,861 4.3%
US Treasury Bond
6.875%, Due 8/15/25...................... 35,689 2.8%
U.S. Robotics Corp .......................... 23,040 1.8%
Amgen Inc ................................... 18,542 1.5%
State Auto Financial Corp ................... 18,486 1.5%
Sprint Corp.................................. 18,343 1.5%
$535,218 42.5%
Medium-Term Retirement
US Treasury Note
5.500%, Due 11/15/98..................... $501,606 13.6%
US Treasury Note
6.500%, Due 8/15/05...................... 425,711 11.6%
Standard & Poor's Depositary
Receipt.................................. 177,450 4.8%
US Treasury Bond
6.875%, Due 8/15/25...................... 161,111 4.4%
BT EAFE Equity Index Fund.................... 144,849 3.9%
Exxon Corp................................... 53,214 1.4%
May Department Stores Co..................... 39,083 1.1%
Kimberly-Clark Corp ......................... 37,243 1.0%
Royal Dutch Petroleum Co ADR ................ 36,882 1.0%
Viacom Inc Cl B ............................. 35,433 1.0%
$1,612,582 43.8%
Short-Term Retirement
US Treasury Note
5.500%, Due 11/15/98..................... $880,046 18.5%
US Treasury Note
6.500%, Due 8/15/05...................... 743,737 15.6%
US Treasury Bond
6.875%, Due 8/15/25...................... 275,316 5.8%
Standard & Poor's Depositary
Receipt.................................. 221,813 4.7%
Royal Dutch Petroleum Co ADR ................ 126,013 2.6%
Exxon Corp................................... 91,140 1.9%
GTE Corp .................................... 84,766 1.8%
Pharmacia & Upjohn Inc ...................... 75,169 1.6%
Mobil Corp .................................. 73,350 1.5%
Chevron Corp ................................ 71,825 1.5%
$2,643,175 55.5%
<FN>
* The composition of the largest securities in each porfolio is subje
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
<C> <S> <C>
Number
of Shares Security Value
Core Large-Cap Stock Fund
COMMON STOCKS (96.6%)
Basic Materials (9.3%)
185 Dow Chemical Co ............................. $14,499
360 Barrick Gold Corp ........................... 10,305
235 Monsanto Co ................................. 9,136
117 PPG Industries Inc. ......................... 6,567
274 Placer Dome Inc ADR ......................... 5,960
88 Phelps Dodge Corp ........................... 5,940
82 Pioneer Hi Bred International ............... 5,740
117 Great Lakes Chemical Corp. .................. 5,470
105 W.R. Grace & Co.............................. 5,434
105 International Flavors &
Fragrances Inc ........................... 4,725
144 Inco Ltd .................................... 4,590
99 Newmont Mining Corp ......................... 4,430
48 Rohm & Haas Co .............................. 3,918
66 Reynolds Metals Co .......................... 3,720
194 Engelhard Corp .............................. 3,710
110 James River Corp of Virginia ................ 3,644
114 USX US Steel Group .......................... 3,577
61 Temple Inland Inc ........................... 3,302
64 Nucor Corp .................................. 3,264
79 International Paper Co. ..................... 3,190
133 Cyprus Amax Minerals Co. .................... 3,109
47 Sigma Aldrich Corp .......................... 2,935
188 Homestake Mining Co ......................... 2,679
80 Boise Cascade Corp .......................... 2,540
46 Union Camp Corp ............................. 2,197
224 +Bethlehem Steel Corp. ....................... 2,016
70 Westvaco Corp................................ 2,013
86 Allegheny Teledyne Inc ...................... 1,978
51 Bemis Inc ................................... 1,881
103 Worthington Industries....................... 1,867
92 Inland Steel Industries Inc ................. 1,840
25 +FMC Corp .................................... 1,753
231 Echo Bay Mines Ltd .......................... 1,530
37 BF Goodrich Co............................... 1,499
100 Stone Container Corp ........................ 1,487
36 Ecolab Inc .................................. 1,354
35 Nalco Chemical Co ........................... 1,264
159 +Armco Inc ................................... 656
13 Potlach Corp ................................ 559
--------
146,278
--------
Capital Goods (12.2%)
216 Boeing Co ................................... 22,977
222 Minnesota Mining &
Manufacturing Co ......................... 18,398
222 McDonnell Douglas Corp ...................... 14,208
204 +Rockwell International....................... 12,418
124 Emerson Electric Co. ........................ 11,997
Number
of Shares Security Value
Core Large-Cap Stock Fund (continued)
204 Corning Inc ................................. $9,435
405 Westinghouse Electric Corp .................. 8,049
107 Honeywell Inc. .............................. 7,035
110 Fluor Corp .................................. 6,902
89 Eaton Corp .................................. 6,208
105 Crown Cork & Seal Inc ....................... 5,709
114 Cooper Industries ........................... 4,802
89 Tyco International Ltd ...................... 4,706
47 Textron Inc ................................. 4,430
76 Alco Standard Corp .......................... 3,924
91 Parker Hannifin Corp ........................ 3,526
42 Northrop Grumman Corp ....................... 3,476
62 Dover Corp .................................. 3,115
118 Pall Corp ................................... 3,009
120 PP & L Resources Inc ........................ 2,760
34 Raychem Corp................................. 2,724
55 Harnischfeger Industries Inc. ............... 2,647
36 General Dynamics ............................ 2,538
30 Grainger WW Inc ............................. 2,408
58 Millipore Corp .............................. 2,400
205 Laidlaw Inc Cl B............................. 2,358
46 Cummins Engine Inc .......................... 2,116
80 Moore Corp Ltd .............................. 1,630
44 Avery Dennison Corp ......................... 1,556
35 General Signal Corp ......................... 1,496
78 McDermott International Inc ................. 1,297
57 Cincinnati Milacron Inc ..................... 1,247
47 Ball Corp ................................... 1,222
27 Briggs & Stratton Corp ...................... 1,188
40 Crane Co .................................... 1,160
29 Trinova Corp ................................ 1,055
28 National Services Industries Inc ............ 1,046
23 Thomas & Betts Corp ......................... 1,021
43 Premark International........................ 957
98 +Navistar International Corp ................. 894
14 Timken Co. .................................. 642
42 Giddings & Lewis Inc. ....................... 541
6 NACCO Industries Inc Cl A ................... 321
--------
191,548
--------
Communication Services (3.1%)
582 GTE Corp..................................... 26,481
326 US West Inc ................................. 10,513
171 Sprint Corp ................................. 6,818
163 ALLTEL Corp ................................. 5,114
--------
48,926
--------
Consumer Cyclical (12.4%)
312 Eastman Kodak Co ............................ 25,038
237 May Department Stores Co .................... 11,080
378 Dun & Bradstreet Corp ....................... 8,978
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Core Large-Cap Stock Fund (continued)
382 The Limited Inc ............................. $7,019
225 Gap Inc. .................................... 6,778
89 Gannet Inc .................................. 6,664
240 Mattel Inc................................... 6,660
156 Dayton Hudson Corp .......................... 6,123
170 Masco Corp .................................. 6,120
153 Service Corp International .................. 4,284
96 Tandy Corp................................... 4,224
136 Dillard Department Stores ................... 4,199
106 New York Times Co Cl A ...................... 4,028
90 Genuine Parts Co ............................ 4,016
83 Interpublic Group of Cos Inc ................ 3,942
375 +K mart Stores ............................... 3,891
81 Harcourt General Inc......................... 3,736
109 Dow Jones & Co Inc .......................... 3,692
113 Black & Decker Corp.......................... 3,404
98 Cognizant Corp .............................. 3,234
70 McGraw-Hill Cos Inc ......................... 3,229
64 TRW Inc. .................................... 3,168
71 Owens Corning ............................... 3,026
94 Echlin Inc. ................................. 2,973
67 Polaroid Corp ............................... 2,914
42 VF Corp ..................................... 2,835
40 Armstrong World Industries Inc............... 2,780
139 Cooper Tire & Rubber ........................ 2,745
65 Reebok International Ltd .................... 2,730
135 Maytag Corp ................................. 2,666
69 Liz Claiborne Inc. .......................... 2,665
63 Hasbro Inc .................................. 2,449
31 Tribune Co. ................................. 2,445
80 Circuit City Store Inc ...................... 2,410
43 Sherwin-Williams Co. ........................ 2,408
61 Knight- Ridder Inc .......................... 2,333
106 +Woolworth Corp .............................. 2,319
77 American Greetings-Cl A ..................... 2,185
52 +Fruit of the Loom Inc ....................... 1,969
71 Stanley Works ............................... 1,917
37 Mercantile Stores ........................... 1,827
102 Viad Corp ................................... 1,683
35 TJX Cos Inc.................................. 1,658
71 Ogden Corp .................................. 1,331
60 Jostens Inc ................................. 1,268
34 Snap-On Inc ................................. 1,211
40 Russell Corp ................................ 1,190
28 +Payless ShoeSource Inc ...................... 1,050
20 Springs Industries Inc ...................... 860
16 Meredith Corp ............................... 844
54 Stride Rite Corp ............................ 540
32 +ACNielsen Corp .............................. 484
22 Outboard Marine Inc. ........................ 363
9 +Footstar Inc ................................ 224
--------
193,809
--------
Number
of Shares Security Value
Core Large-Cap Stock Fund (continued)
Consumer Staples (13.1%)
101 Unilever NV ADR ............................. $17,700
212 Walt Disney Co .............................. 14,761
398 +Viacom Inc Cl B ............................ 13,880
205 Kellogg Co .................................. 13,453
309 Heinz H J Co ................................ 11,124
483 Archer Daniels Midland Co.................... 10,626
254 Anheuser- Busch Cos Inc. .................... 10,160
118 Ralston Purina Co ........................... 8,658
165 Conagra Inc ................................. 8,209
87 Colgate-Palmolive Co ........................ 8,026
102 CPC International Inc. ...................... 7,905
234 UST Inc. .................................... 7,576
109 General Mills Inc ........................... 6,908
158 Quaker Oats Co............................... 6,024
129 +Kroger Co ................................... 5,999
69 Avon Products Inc ........................... 3,942
96 American Stores Co........................... 3,924
115 Winn Dixie Stores ........................... 3,637
76 Hershey Foods Corp .......................... 3,325
79 Rite Aid Corp. .............................. 3,140
127 Whitman Corp ................................ 2,905
87 Sysco Corp .................................. 2,838
67 +CVS Corp .................................... 2,764
51 Tupperware Corp.............................. 2,735
26 Clorox Co. .................................. 2,610
74 Giant Food Inc Cl A ......................... 2,553
122 Wendy's International ....................... 2,501
57 +Ceridian Corp ............................... 2,308
67 Deluxe Corp ................................. 2,194
50 +King World Productions Inc .................. 1,844
123 Dial Corp ................................... 1,814
60 Supervalu Inc. .............................. 1,703
29 Brown-Forman Corp Class B .................. 1,327
74 Fleming Cos Inc ............................. 1,277
70 Safety Kleen Corp ........................... 1,146
28 Great Atlantic & Pacific Tea ................ 892
25 Hilton Hotels Corp .......................... 653
32 Coors (Adolph) Co Cl B ...................... 608
29 Luby's Cafeterias Inc. ...................... 576
77 +Shoney's Inc ................................ 539
8 Alberto Culver Co............................ 384
43 +Ryan's Family Steak Houses Inc .............. 296
6 Longs Drug Stores Corp....................... 295
7 Harland Co. ................................. 231
--------
205,970
--------
Energy (18.0%)
660 Exxon Corp .................................. 64,680
277 Royal Dutch Petroleum Co ADR ................ 47,298
232 Mobil Corp. ................................. 28,362
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Core Large-Cap Stock Fund (continued)
292 Amoco Corp .................................. $23,579
317 Chevron Corp................................. 20,605
137 Texaco Inc .................................. 13,443
134 Schlumberger Ltd ............................ 13,383
93 Atlantic Richfield .......................... 12,334
240 Phillips Petroleum Co. ...................... 10,620
331 Occidental Petroleum Corp ................... 7,737
117 Halliburton Co............................... 7,049
127 Burlington Resources Inc .................... 6,398
170 Dresser Industries Inc ...................... 5,270
78 Amerada Hess Corp. .......................... 4,514
105 Baker Hughes Inc ............................ 3,623
98 Sun Co ...................................... 2,389
30 Kerr McGee Corp ............................. 2,160
83 +Oryx Energy Co .............................. 2,054
28 Louisiana Land & Exploration Co ............. 1,502
33 Ashland Inc ................................. 1,448
21 Pennzoil Co. ................................ 1,187
71 +Santa Fe Energy Resources ................... 985
38 +Rowan Cos ................................... 860
11 Helmerich & Payne Inc........................ 573
--------
282,053
--------
Financial (3.8%)
79 Loews Corp .................................. 7,446
127 Lincoln National Corp Ltd. .................. 6,667
74 UNUM Corp ................................... 5,347
76 First Bank System Inc ....................... 5,254
43 Marsh & McLennan Cos ........................ 4,472
99 U.S. Bancorp ................................ 4,449
64 St Paul Cos. Inc Corp ....................... 3,752
55 Boatmen's Bancshares Inc .................... 3,548
44 Transamerica Corp ........................... 3,481
76 National City Corp .......................... 3,411
80 Safeco Corp ................................. 3,155
44 Jefferson- Pilot Corp ....................... 2,492
117 USF&G Corp .................................. 2,442
25 Republic NY Corp ............................ 2,041
18 Aetna Inc ................................... 1,440
21 USLife Corp ................................. 698
--------
60,095
--------
Health Care (11.9%)
404 Lilly Eli & Co .............................. 29,492
243 Bristol-Myers Squibb Co. .................... 26,426
341 Schering-Plough Corp. ....................... 22,080
543 Pharmacia & Upjohn Inc....................... 21,516
316 American Home Products Corp.................. 18,526
257 +Amgen Inc. .................................. 13,974
140 Warner Lambert Co ........................... 10,500
148 +Boston Scientific Corp ...................... 8,880
Number
of Shares Security Value
Core Large-Cap Stock Fund (continued)
262 +Humana Inc .................................. $5,011
188 +Tenet Healthcare Corp ....................... 4,113
96 +St. Jude Medical Inc. ....................... 4,092
91 Becton Dickinson & Co. ...................... 3,947
84 Allergan Inc. ............................... 2,992
83 Bausch & Lomb Inc ........................... 2,946
63 Mallinckrodt Inc. ........................... 2,780
169 Biomet ...................................... 2,556
92 +ALZA Corp ................................... 2,381
83 +Fresenius Medical Care ADR .................. 2,334
43 United States Surgical Corp ................. 1,693
78 +Transitional Hospitals Corp ................. 751
--------
186,990
--------
Technology (4.6%)
157 International Business Machines
Corp..................................... 23,707
415 First Data Corp ............................. 15,147
143 Raytheon Co ................................. 6,882
593 +Novell Inc .................................. 5,615
233 +Apple Computer Inc .......................... 4,864
105 +Advanced Micro Devices Inc .................. 2,704
90 Autodesk Inc ................................ 2,520
33 Perkin Elmer Corp............................ 1,943
26 Harris Corp.................................. 1,784
126 +Amdahl Corp ................................. 1,528
75 EG&G Inc .................................... 1,509
190 +Unisys Corp ................................. 1,282
25 Shared Medical Systems Corp ................. 1,231
71 +Intergraph Corp ............................. 728
40 +Data General Corp ........................... 580
--------
72,024
--------
Transportation (0.7%)
136 +Federal Express Corp. ....................... 6,052
123 Caliber Systems Inc ......................... 2,368
60 Consolidated Freightways Inc ................ 1,335
43 +USAir Group Inc ............................. 1,005
23 +Yellow Corp ................................. 331
30 +Consolidated Freightways Corp ............... 266
--------
11,357
--------
Utilities (7.5%)
465 Southern Co ................................. 10,521
239 Enron Corp .................................. 10,307
139 FPL Group Inc. .............................. 6,394
137 Duke Power Co ............................... 6,371
153 Williams Cos Inc ............................ 5,738
142 Dominion Resources Inc....................... 5,467
251 Pacific Gas & Electric Co. .................. 5,271
107 Coastal Corp ................................ 5,230
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Core Large-Cap Stock Fund (continued)
117 American Electric Power Co .................. $4,812
117 Texas Utilities Co .......................... 4,768
164 Entergy Corp................................. 4,551
226 Edison International ........................ 4,492
185 Houston Industries .......................... 4,186
153 Central & South West Corp ................... 3,921
110 Cinergy Corp. ............................... 3,671
71 Sonat Inc. .................................. 3,656
59 Consolidated National Gas Co ................ 3,260
101 Pacific Enterprises ......................... 3,068
90 GPU Inc ..................................... 3,026
46 Columbia Gas System Inc ..................... 2,927
76 Union Electric Co............................ 2,925
95 Public Service Entreprise ................... 2,588
111 Ohio Edison Co .............................. 2,525
210 +Niagara Mohawk Power Corp.................... 2,074
42 Northern States Power........................ 1,927
67 ENSERCH Corp ................................ 1,541
82 Noram Energy Corp. .......................... 1,261
26 Nicor Inc. .................................. 929
26 Oneok Inc. .................................. 780
6 Eastern Enterprises ......................... 212
--------
118,399
--------
Total Common Stocks
(Cost $1,408,895)........................ 1,517,449
---------
Unit Investment Trust (2.8%)
(Cost $44,815)
600 Standard & Poor's
Depositary Receipt ...................... 44,362
--------
CONVERTIBLE PREFERRED
STOCK (0.0%)
(Cost $327)
Financial (0.0%)
5 Aetna Inc Class C 6.250% .................... 397
--------
Total Investments (99.4%)
(Cost $1,454,037)........................ 1,562,208
Other Assets in Excess
of Liabilities (0.6%).................... 8,924
--------
Total Net Assets (100.0%).................... $1,571,132
<FN>
=========
+ Non-income producing security.
</FN>
</TABLE>
<TABLE>
<C> <S> <C>
Number
of Shares Security Value
Core Small-Cap Stock Fund
COMMON STOCKS (97.0%)
Basic Materials (4.8%)
213 Tuscarora Inc ............................... $5,831
112 Ameron International Inc .................... 5,782
114 Cleveland Cliffs Inc......................... 5,173
807 +Amax Gold Inc ............................... 5,145
157 Florida Rock Industries Inc.................. 5,142
136 Carpenter Technology Corp ................... 4,981
222 Lawter International Inc .................... 4,962
139 Mosinee Paper Corp .......................... 4,934
179 Fab Industries Inc .......................... 4,922
150 Cambrex Corp ................................ 4,913
149 Liqui-Box Corp .............................. 4,842
318 Coeur D'Alene Mines Corp..................... 4,810
291 Quaker Chemical Corp ........................ 4,765
145 Dexter Corp ................................. 4,622
244 Wausau Paper Mills Co ....................... 4,514
765 +Hecla Mining Co ............................. 4,207
109 +Getchell Gold Corp .......................... 4,183
302 Calgon Carbon Corp .......................... 3,699
61 Fuller H B Co ............................... 2,867
151 Lilly Industries Inc Cl A ................... 2,775
57 Penwest Ltd ................................. 998
--------
94,067
--------
Capital Goods (12.8%)
109 NACCO Industries Inc Cl A ................... 5,831
166 McClatchy Newspapers Inc Cl A ............... 5,810
139 Butler Manufacturing Co ..................... 5,630
274 Penn Engineering &
Manufacturing Corp....................... 5,617
133 Kimball International Inc Cl B............... 5,503
372 Daniel Industries Inc........................ 5,487
87 +SEACOR Holdings Inc ......................... 5,481
133 Manitowoc Inc ............................... 5,387
132 Tredegar Industries Inc ..................... 5,297
352 Oil-Dri Corp America ........................ 5,280
161 Kysor Industrial Corp ....................... 5,253
212 Amcast Industrial Corp ...................... 5,247
210 Brady W H Co ................................ 5,171
127 IDEX Corp ................................... 5,064
107 Fisher Scientific International Inc.......... 5,042
84 Barnes Group Inc ............................ 5,040
94 Mine Safety Appliances Co ................... 5,006
227 +Osmonics Inc ................................ 4,994
202 Baldor Electric Co .......................... 4,974
111 Thiokol Corp ................................ 4,967
117 American Filtrona Corp ...................... 4,958
214 Albany International Corp Cl A .............. 4,949
177 +Bearings Inc................................. 4,934
81 Carlisle Cos Inc ............................ 4,900
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Core Small-Cap Stock Fund (continued)
76 +SPS Technologies Inc ........................ $4,883
237 Varlen Corp ................................. 4,873
145 Donaldson Co................................. 4,858
100 +Littelfuse Inc. ............................. 4,850
149 +Avatar Holdings Inc ......................... 4,768
91 Teleflex Inc ................................ 4,743
185 International Aluminum Corp ................. 4,718
205 Learonal Inc ................................ 4,715
211 +Ladd Furniture Inc .......................... 4,680
155 Commercial Metals Co......................... 4,669
151 Standex International Corp .................. 4,662
631 +Insituform Technologies Inc Cl A ............ 4,654
145 +USA Waste Services Inc ...................... 4,622
188 Graco Inc ................................... 4,606
145 Stone & Webster Inc ......................... 4,604
204 +Lydall Inc .................................. 4,590
492 +Thermo Fibertek Inc ......................... 4,582
262 Raymond Corp ................................ 4,552
316 Woodhead Industries Inc ..................... 4,345
679 UNR Industries Inc .......................... 4,074
101 +Sequa Corp Cl A ............................. 3,964
109 +Dionex Corp ................................. 3,815
302 +Nashua Corp. ................................ 3,624
114 +Syratech Corp ............................... 3,591
326 Sealright Co ................................ 3,423
156 Granite Construction Inc .................... 2,964
100 Grief Bros Corp Cl A ........................ 2,850
167 +Cuno Inc .................................... 2,484
63 AAR Corp .................................... 1,905
19 Miller (Herman) Inc ......................... 1,076
35 Harmon Industries ........................... 652
22 +Devon Group Inc ............................. 605
42 +Durakon Industries Inc. ..................... 536
15 Gleason Corp ................................ 497
34 +Intermagnetics General Corp ................. 408
--------
251,264
--------
Consumer Cyclical (14.3%)
1,371 Ekco Group Inc .............................. 5,998
152 SPX Corp .................................... 5,890
124 Pultizer Publishing Co....................... 5,750
88 +Culbro Corp ................................. 5,709
417 +Johnson Worldwide
Association Inc Cl A..................... 5,525
284 Sturm Ruger & Co Inc ........................ 5,502
222 Donnelly Corp ............................... 5,439
96 Houghton Mifflin Co ......................... 5,436
386 ADVO Inc .................................... 5,404
214 American Business Products................... 5,377
195 K2 Inc ...................................... 5,362
210 Standard Products Co ........................ 5,355
Number
of Shares Security Value
Core Small-Cap Stock Fund (continued)
527 Graphic Industries .......................... $5,336
449 +Lifetime Hoan Corp .......................... 5,276
120 Hughes Supply Inc ........................... 5,175
157 Wiley (John) & Sons Inc Cl A ................ 5,063
160 Wynns International Inc ..................... 5,060
505 Crown Crafts Inc ............................ 5,050
154 +Gelman Sciences Inc ......................... 5,005
202 Bassett Furniture Industries Inc............. 4,949
82 NCH Corp .................................... 4,940
172 Starrett LS Co Cl A ......................... 4,881
830 +American Media Inc........................... 4,876
164 Lawson Products Inc ......................... 4,856
177 Unitog Co.................................... 4,823
181 Guilford Mills Inc .......................... 4,819
315 +National Education Corp ..................... 4,804
565 +Handleman Co ................................ 4,803
253 Caseys General Stores Inc ................... 4,744
274 Wackenhut Corp Cl A ......................... 4,726
262 Russ Berrie & Co Inc ........................ 4,716
308 Osh Kosh B'Gosh Inc Cl A .................... 4,697
50 Dart Group Corp Cl A ........................ 4,650
697 +Uno Restaurant Corp ......................... 4,618
116 Apogee Enterprises Inc ...................... 4,611
297 Genovese Drugs Stores ....................... 4,603
87 Meredith Corp ............................... 4,589
318 Falcon Products Inc ......................... 4,532
169 Stanhome Inc ................................ 4,479
231 Delechamps Inc .............................. 4,476
243 Brown Group Inc ............................. 4,465
393 La-Z-Boy Chair Co ........................... 4,454
127 Plenum Publishing Corp ...................... 4,445
205 Smart & Final Inc ........................... 4,433
277 Strawbridge & Clothier ...................... 4,397
86 WD-40 Co .................................... 4,387
227 +Lands' End Inc .............................. 4,346
198 True North Communications Inc ............... 4,331
425 Stride Rite Corp ............................ 4,250
274 Cadmus Communications Corp .................. 4,247
49 United Television Inc ....................... 4,220
175 Waverly Inc ................................. 4,156
227 Walbro Corp. ................................ 4,143
211 Alico Inc ................................... 3,956
385 +Playboy Enterprises Inc Cl B ................ 3,754
207 Commercial Intertech Corp ................... 2,820
320 +GRC International Inc ....................... 2,600
127 +Pre-Paid Legal Services Inc ................. 2,318
530 +Topps Co Inc ................................ 2,120
84 Shopko Stores Inc ........................... 1,260
70 +AnnTaylor Stores Corp ....................... 1,225
70 +American Classic Voyages Co.................. 919
28 Thomas Nelson Inc............................ 417
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Core Small-Cap Stock Fund (continued)
20 +Galey & Lord Inc ............................ $297
15 Outboard Marine Inc. ........................ 247
--------
280,111
--------
Consumer Staples (6.7%)
119 Interstate Bakeries Corp .................... 5,846
172 Harland Co. ................................. 5,676
244 Nash Finch Corp ............................. 5,185
326 Rykoff-Sexton Inc ........................... 5,175
351 Dames & Moore Inc ........................... 5,133
224 Church & Dwight Co........................... 5,124
129 Tootsie Roll Industries...................... 5,112
365 Ruddick Corp ................................ 5,110
104 Longs Drug Stores ........................... 5,109
281 International Multifoods Corp ............... 5,093
261 Blair Corp .................................. 5,024
286 Arbor Drugs Inc ............................. 4,969
267 ABM Industries Inc .......................... 4,940
350 +Foodbrands America Inc ...................... 4,813
127 National Presto Industries .................. 4,747
181 +Carmike Cinemas Inc. Cl A ................... 4,593
278 Goodmark Foods Inc .......................... 4,587
241 Coors (Adolph) Co Cl B ...................... 4,579
30 Farmer Brothers Co .......................... 4,560
212 Flowers Industries Inc ...................... 4,558
227 +International Dairy Queen Inc
Cl A..................................... 4,540
348 WLR Foods Inc ............................... 4,307
216 Luby's Cafeterias Inc. ...................... 4,293
359 A.T. Cross Co Cl A .......................... 4,173
217 Angelica Corp ............................... 4,150
591 +Shoney's Inc ................................ 4,137
255 +AMC Entertainment Inc ....................... 3,666
76 Rival Co..................................... 1,891
37 +Valassis Communications Inc. ................ 782
30 +Bone Care International Inc.................. 218
--------
132,090
--------
Energy (4.1%)
320 Landauer Inc ................................ 5,562
265 Wiser Oil Co ................................ 5,234
188 Ashland Coal Inc ............................ 5,217
100 Helmerich & Payne Inc........................ 5,213
143 Vintage Petroleum Inc ....................... 4,933
343 Berry Petroleum Cl A ........................ 4,931
137 Apache Corp ................................. 4,846
519 +Allied Waste Industries Inc ................. 4,801
290 Getty Petroleum Corp ........................ 4,712
296 +Tuboscope Vetco International
Corp..................................... 4,588
275 +HS Resources Inc ............................ 4,537
Number
of Shares Security Value
Core Small-Cap Stock Fund (continued)
105 +Barrett Resources Corp ...................... $4,476
293 Quaker State Corp ........................... 4,139
152 Holly Corp .................................. 4,066
212 +Plains Resources Inc ........................ 3,313
129 +Belden & Blake Corp ......................... 3,290
200 +Pool Energy Services Co ..................... 3,075
58 +Newpark Resources Inc ....................... 2,161
140 +Hondo Oil & Gas Co .......................... 1,523
69 +Box Energy Corp Cl B......................... 630
--------
81,247
--------
Financial Services (31.0%)
427 BRE Properties Inc .......................... 10,568
179 Home Beneficial Corp ........................ 6,780
168 Financial Trust Corp ........................ 6,699
100 Citizens Bancorp Maryland ................... 6,200
119 Liberty Bancorp Inc.......................... 5,920
95 Forest City Enterprises Inc Cl A ............ 5,748
319 State Auto Financial Corp ................... 5,742
385 Burham Pacific Properties Inc ............... 5,727
175 Wesbanco Inc ................................ 5,688
215 American Heritage Life Inc................... 5,644
139 Horace Mann Educator Corp.................... 5,612
198 Brenton Banks Inc ........................... 5,470
254 F & M National Corp ......................... 5,429
130 CNB Bancshares Inc .......................... 5,427
183 First Michigan Bank Corp .................... 5,421
146 One Valley Bancorp Inc ...................... 5,420
166 First Midwest Bancorp Inc ................... 5,416
155 Susquehanna Bancshares Inc................... 5,367
164 +UICI ........................................ 5,330
242 MGI Properties .............................. 5,324
430 First Union Real Estate Corp................. 5,321
335 Commercial Net Lease Realty
Inc...................................... 5,318
128 Banknorth Group Inc ......................... 5,312
142 Student Loan Corp ........................... 5,289
170 Deposit Guaranty Corp ....................... 5,270
132 Protective Life Corp ........................ 5,264
91 Westamerica Bancorp.......................... 5,255
212 Irwin Financial Corp ........................ 5,247
193 Federal Realty Investment Trust.............. 5,235
135 New York Bancorp Inc ........................ 5,231
309 South West Property Trust ................... 5,214
137 Fort Wayne National Corp .................... 5,206
153 Provident Bancorp ........................... 5,202
109 Pennsylvania Real Estate
Investment............................... 5,192
135 Suffolk Bancorp ............................. 5,164
136 National Health Investors Inc. .............. 5,151
65 +Alexander's Inc ............................. 5,143
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Core Small-Cap Stock Fund (continued)
154 RLI Corp .................................... $5,140
293 Washington Real Estate
Investment Trust......................... 5,127
155 United Bankshares Inc ....................... 5,115
405 ALFA Corp ................................... 5,113
239 Trustco Bank Corp ........................... 5,109
276 LTC Properties Inc .......................... 5,106
302 Kranzco Realty Trust......................... 5,096
152 Omega Healthcare Investors Inc .............. 5,054
439 IRT Property Co ............................. 5,049
246 Universal Health Realty Income .............. 5,043
155 First Financial Bancorp ..................... 5,037
207 Nationwide Health Properties
Inc...................................... 5,020
207 Wellsford Residential Property
Trust.................................... 5,020
210 American Health Properties .................. 5,014
135 First Commercial Corp ....................... 5,012
142 United Fire & Casualty Co.................... 5,005
118 US Bancorp Inc............................... 5,000
180 Bancorp South Inc ........................... 4,995
141 Whitney Holding Corp ........................ 4,988
505 Berkshire Realty Co ......................... 4,987
94 Park National Corp .......................... 4,982
147 +MAIC Holdings Inc ........................... 4,980
223 SEI Corp .................................... 4,962
181 Zenith National Insurance Corp............... 4,955
125 BT Financial Corp ........................... 4,953
157 Citizens Banking Corp........................ 4,945
384 CRIIMI MAE Inc. ............................. 4,944
216 Crawford & Co ............................... 4,941
129 National Communications
Bancorp.................................. 4,934
511 Gainsco Inc ................................. 4,918
168 National City Bancshares Inc ................ 4,914
125 Liberty Corp ................................ 4,906
381 Taubman Centers Inc ......................... 4,905
185 First Merchants Corp ........................ 4,903
272 NYMagic Inc ................................. 4,896
100 Mark Twain Bancshares Inc ................... 4,875
134 Capitol American Financial Corp ............. 4,874
177 Community First Bankshares .................. 4,868
140 Firstbank Co ................................ 4,865
119 American General Corp ....................... 4,864
128 Selective Insurance Group ................... 4,864
123 United Carolina Bancshares .................. 4,859
114 Associated Banc Corp ........................ 4,845
119 UMB Financial Corp .......................... 4,805
196 Hubco Inc ................................... 4,802
46 Zions Bancorp................................ 4,784
196 Health Care Real Estate
Investment Trust......................... 4,778
Number
of Shares Security Value
Core Small-Cap Stock Fund (continued)
154 Gallagher (Arthur J.) & Co .................. $4,774
180 Poe & Brown Inc ............................. 4,770
155 Argonaut Group Inc .......................... 4,766
125 JSB Financial Inc ........................... 4,750
151 Albank Financial Corp ....................... 4,738
163 Acordia Inc ................................. 4,727
203 Allied Capital Commercial Corp .............. 4,720
93 Berkley W R Corp ............................ 4,720
250 American Federal Bank ....................... 4,719
356 Hilb, Rogal & Hamilton Co ................... 4,717
52 +Markel Corp ................................. 4,680
63 First Union Corp ............................ 4,662
358 Western Investment Real Estate
Trust.................................... 4,654
177 First Western Bancorp Inc ................... 4,646
216 Fulton Financial Corp ....................... 4,644
181 Valley National Bancorp ..................... 4,638
189 First Source Corp ........................... 4,630
248 First Commonwealth Financial
Corp..................................... 4,619
113 Farmers Capital Bank Corp ................... 4,605
178 McGrath Rent Corp ........................... 4,584
183 Keystone Financial Inc ...................... 4,575
269 Ramco-Gershenson Properties
Trust.................................... 4,539
290 Avemco Corp ................................. 4,531
172 National Penn Bancshares Inc ................ 4,494
145 S&T Bancorp Inc ............................. 4,459
137 Corus Bankshares Inc ........................ 4,418
257 Mid Am Inc .................................. 4,401
150 Bank of Granite Corp ........................ 4,350
92 Trenwick Group Inc .......................... 4,255
473 Cash America International Inc. ............. 4,021
112 MAF Bancorp ................................. 3,892
76 U.S. Bancorp ................................ 3,415
189 Bradley Real Estate Inc ..................... 3,402
89 Anchor Bancorp Inc .......................... 3,182
71 Value Line Inc .............................. 3,142
88 Southtrust Corp ............................. 3,069
93 Fremont General Corp ........................ 2,883
55 Homeland Bankshares Corp .................... 2,282
78 HCC Insurance Holdings Inc .................. 1,872
78 FNB Corp..................................... 1,794
113 Trust Company of New Jersey ................. 1,582
40 UST Corp .................................... 825
--------
610,243
--------
Health Care (2.9%)
349 +Tecnol Medical Products Inc. ................ 5,279
130 Seafield Capital Corp ....................... 5,037
102 +Synetic Inc ................................. 4,947
175 West Inc .................................... 4,944
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Core Small-Cap Stock Fund (continued)
466 +Medco Research Inc .......................... $4,893
305 +Advanced Magnetics Inc ...................... 4,728
134 +Lunar Corp .................................. 4,690
119 Chemed Corp ................................. 4,343
369 +Epitope Inc ................................. 4,243
130 Diagnostic Products Corp..................... 3,364
274 Kinetic Concepts Inc ........................ 3,356
1,710 +Foxmeyer Health Corp ........................ 2,993
71 +Vivra Inc ................................... 1,961
64 +Barr Laboratories Inc ....................... 1,624
25 +American Homepatient Inc .................... 681
100 + Faulding Inc ................................ 612
--------
57,695
--------
Technology (4.3%)
241 +Boole & Babbage Inc ......................... 6,025
123 +BRC Holdings Inc ............................ 5,504
233 Cubic Corp .................................. 5,388
164 +Keane Inc ................................... 5,207
119 CTS Corp .................................... 5,087
114 Fluke Corp .................................. 5,087
381 Kaman Corp Cl A.............................. 4,953
171 Analysts International Corp ................. 4,831
225 +Bell Industries Inc ......................... 4,809
183 +Esterline Technologies Corp ................. 4,781
227 MTS Systems Corp ............................ 4,540
247 X-Rite Inc .................................. 4,075
234 +Trident Microsystems Inc .................... 3,949
162 +DH Technology Inc ........................... 3,888
135 +Kent Electronics Corp ....................... 3,476
71 +Dynatech Corp ............................... 3,142
81 Logicon Inc ................................. 2,957
163 +Tekelec ..................................... 2,567
53 +Kronos Inc. ................................. 1,696
88 +Integrated Process Equipment
Corp..................................... 1,584
22 +Silicon Graphics Inc......................... 561
--------
84,107
--------
Transportation (1.9%)
276 International Shipholding Corp .............. 5,106
402 Rollins Truck Leasing Corp .................. 5,075
346 +Yellow Corp.................................. 4,974
192 +Swift Transportation Co Inc ................. 4,512
51 Florida East Coast Industries ............... 4,456
493 Frozen Foods Express
Industries Inc........................... 4,437
174 Expeditors International of
Washington Inc........................... 4,002
199 Hunt J B Transportation
Services Inc............................. 2,786
109 Harper Group Inc ............................ 2,589
--------
37,937
--------
Number
of Shares Security Value
Core Small-Cap Stock Fund (continued)
Utilities (14.2%)
211 IWC Resources Corp .......................... $6,567
188 Oneok Inc. .................................. 5,640
132 California Water Services Co ................ 5,544
116 +Tejas Gas Corp............................... 5,525
116 SJW Corp .................................... 5,438
193 Black Hills Corp ............................ 5,428
173 Energen Corp ................................ 5,233
185 Aquarion Co ................................. 5,157
302 Cascade Natural Gas Corp .................... 5,134
151 Laclede Gas Co .............................. 5,090
129 KN Energy Inc ............................... 5,063
197 Connecticut Natural Gas Corp ................ 5,023
210 Atmos Energy Corp ........................... 5,014
243 Washington Energy Co ........................ 5,012
183 TNP Enterprise Inc .......................... 5,010
447 +Citizens Utilities Co Cl B .................. 4,976
249 Philadelphia Suburban Corp .................. 4,949
203 South Jersey Industries Inc.................. 4,948
156 E'Town Corp ................................. 4,933
214 MDU Resources Group Inc ..................... 4,922
320 St Joseph Light & Power Co................... 4,920
137 Wicor Inc ................................... 4,915
282 Eastern Utilities Association................ 4,900
249 Public Service Co of New
Mexico................................... 4,867
540 +TPC Corp .................................... 4,860
199 Indiana Energy Inc .......................... 4,851
228 Connecticut Energy Corp ..................... 4,845
258 Empire District Electric Co.................. 4,838
202 Green Mountain Power Corp.................... 4,823
307 United Water Resources Inc .................. 4,797
213 Pennsylvania Enterprises Inc ................ 4,782
152 Central Hudson Gas & Electric
Corp..................................... 4,769
163 New Jersey Resources Corp ................... 4,768
168 Bay State Gas Co ............................ 4,746
246 Western Gas Resources Inc ................... 4,735
137 Northwestern Public Service Co............... 4,692
402 Central Maine Power Co. ..................... 4,673
218 Yankee Energy System Inc..................... 4,660
127 Cilcorp Inc ................................. 4,651
134 Sigcorp Inc ................................. 4,640
207 UGI Corp .................................... 4,632
155 IES Industries Inc .......................... 4,631
129 Orange & Rockland Utilities Inc.............. 4,628
198 Piedmont Natural Gas Inc .................... 4,628
204 United Cities Gas Co......................... 4,590
161 WPS Resources Corp .......................... 4,589
248 Public Service Co of North
Carolina................................. 4,544
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Core Small-Cap Stock Fund (continued)
194 Commonwealth Energy System .................. $4,535
157 North Carolina Natural Gas Corp ............. 4,533
222 Madison Gas & Electric Co.................... 4,495
185 Northwest Natural Gas Co .................... 4,440
203 Southern California Water Co ................ 4,415
137 Otter Tail Power Co ......................... 4,401
203 Colonial Gas Co ............................. 4,314
121 Eastern Enterprises Inc...................... 4,280
132 United Illuminating Co....................... 4,141
299 Central Vermont Public Services
Corp..................................... 3,588
137 Consumers Water Co .......................... 2,466
74 +Southern Union Co............................ 1,628
--------
279,816
--------
Total Investments (97.0%)
(Cost $1,707,952)........................ 1,908,577
Other Assets in Excess
of Liabilities (3.0%).................... 58,814
--------
Total Net Assets (100.0%)................... $1,967,391
==========
<FN>
+ Non-income producing security.
</FN>
</TABLE>
<TABLE>
<C> <S> <C>
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund
COMMON STOCKS (75.2%)
Basic Materials (3.3%)
59 IMC Global Inc .............................. $2,308
34 Vulcan Materials Co ......................... 2,070
24 Dow Chemical Co ............................. 1,881
37 Consolidated Papers Inc ..................... 1,818
57 Barrick Gold Corp ........................... 1,632
130 Ethyl Corp .................................. 1,251
48 Allegheny Teledyne Inc ...................... 1,104
59 Wausau Paper Mills Co ....................... 1,092
27 Bowater Inc ................................. 1,016
42 Placer Dome Inc ADR ......................... 914
70 Lawter International Inc .................... 884
35 Schulman Inc ................................ 858
22 Olin Corp .................................. 828
11 Pioneer Hi Bred International ............... 770
11 Phelps Dodge Corp ........................... 742
11 Aluminum Co. of America ..................... 701
101 Battle Mountain Gold Co ..................... 694
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
54 Calgon Carbon Corp .......................... $661
12 Ameron International Inc ................... 619
12 Nucor Corp .................................. 612
19 Dexter Corp ................................. 606
10 Betzdearborn Inc. ........................... 585
30 Crompton & Knowles Corp ..................... 577
10 Reynolds Metals Co .......................... 564
17 Florida Rock Industries Inc.................. 557
12 Newmont Mining Corp ......................... 537
17 Chesapeake Corp ............................. 533
12 Champion International Corp. ................ 519
25 Stepan Chemical Co .......................... 509
14 +Tremont Corp ................................ 506
16 USX-U.S. Steel Group ........................ 502
18 Fab Industries Inc .......................... 495
11 International Flavors &
Fragrances Inc ........................... 495
29 RPM Inc .................................... 493
12 Minerals Technologies Inc.................... 492
17 Ferro Corp .................................. 482
10 Petrolite Corp .............................. 480
13 Carpenter Technologies Corp ................. 476
14 Cambrex Corp ................................ 458
10 Cleveland-Cliffs Inc......................... 454
25 Glatefelter (PH) Co ......................... 450
80 +Hecla Mining Co ............................. 440
16 Tuscarora Inc ............................... 438
14 Puerto Rican Chemical Inc ................... 437
13 Liqui-Box Corp .............................. 422
27 Coeur D'Alene Mines Corp ................... 408
64 +Amax Gold Inc ............................... 408
21 Engelhard Corp .............................. 402
12 James River Corp of Virginia................. 398
11 Mosinee Paper Corp .......................... 390
12 South Down Inc .............................. 374
15 Cyprus Amax Minerals Co. .................... 351
11 Inco Ltd .................................... 351
12 Westvaco Corp ............................... 345
24 Homestake Mining Co ......................... 342
12 MacDermid Inc ............................... 330
12 Sonoco Products Co .......................... 311
15 Worthington Industries Inc................... 272
37 Echo Bay Mines Ltd .......................... 245
10 +ChemFirst Inc ............................... 231
25 +Bethlehem Steel Corp. ....................... 225
229 +Sunshine Mining & Refining .................. 215
12 Oregon Steel Mills .......................... 201
10 Inland Steel Industries Inc ................. 200
10 Lilly Industries Inc Cl A ................... 184
24 +Armco Inc ................................... 99
3 Mississippi Chemical Corp ................... 80
--------
41,324
--------
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
Capital Goods (7.8%)
320 U.S. Robotics Corp .......................... $23,040
525 Raymond Corp ................................ 9,122
326 +Vallen Corp ................................. 5,420
327 Tejon Ranch Co. ............................. 4,701
40 Boeing Co.................................... 4,255
28 Minnesota Mining &
Manufacturing Co ......................... 2,320
33 McDonnell Douglas Corp ...................... 2,112
42 Hubbell Inc Cl B ............................ 1,816
46 WMX Technologies Inc. ....................... 1,501
70 Westinghouse Electric Corp .................. 1,391
83 Sensormatic Electronics Corp ................ 1,390
12 Emerson Electric Co. ........................ 1,161
32 Wallace Computer Services Inc. .............. 1,104
19 Miller (Herman) Inc ......................... 1,076
22 Corning Inc ................................. 1,017
30 +Analog Devices Inc. ......................... 1,016
30 +Atmel Corp .................................. 994
30 +ADC Telecommunications Inc .................. 934
20 Molex Inc ................................... 782
12 Fluor Corp .................................. 753
20 Trinity Industries Inc ...................... 750
11 Honeywell Inc. .............................. 723
14 Alco Standard Corp .......................... 723
13 Crown Cork & Seal Inc ....................... 707
10 Eaton Corp .................................. 697
26 Amcast Industrial Corp ...................... 643
27 +Jacobs Engineering Group Inc ................ 638
10 Nordson Corp ................................ 637
19 Standard Register Co ........................ 617
19 Pentair Inc ................................. 613
15 Deere & Co .................................. 609
10 Carlisle Cos Inc ............................ 605
18 Donaldson Co Inc ............................ 603
27 Premark International Inc.................... 601
13 Thiokol Corp ................................ 582
11 Teleflex Inc ................................ 573
14 Tredegar Industrials Inc .................... 562
17 HON Industries .............................. 561
16 McClatchy Newspapers Inc Cl A ............... 560
27 Penn Engineering &
Manufacturing Corp ....................... 553
10 NACCO Industries Inc Cl A ................... 535
24 Ametek Inc .................................. 534
10 Tyco International Ltd ...................... 529
11 Fisher Scientific International ............. 518
13 IDEX Corp ................................... 518
21 Baldor Electric Co .......................... 517
23 +Osmonics Inc ................................ 506
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
10 Dover Corp .................................. $503
12 Butler Manufacturing Co ..................... 486
10 +Littelfuse Inc. ............................. 485
10 Kaydon Corp ................................. 471
19 Brady W H Co ................................ 468
14 Gleason Corp ................................ 464
17 Duriron Co Inc .............................. 461
20 Learonal Inc ................................ 460
18 International Aluminum Corp ................. 459
16 +Bearings Inc ................................ 446
14 Stone & Webster Inc ......................... 445
46 +Thermo Fibertek Inc ......................... 428
29 Daniel Industries Inc........................ 428
11 Parker Hannifin Corp ........................ 426
14 Commercial Metals Co......................... 422
28 Oil-Dri Corp America ........................ 420
22 Armor All Products Corp ..................... 418
23 Gencorp Inc ................................. 417
13 +Avatar Holdings Inc ......................... 416
56 +Insituform Technologies Cl A ................ 413
34 +Nashua Corp. ................................ 408
18 +Lydall Inc .................................. 405
14 Grief Brothers Corp Cl A .................... 399
10 +Sequa Corp Cl A ............................. 393
20 Granite Construction Inc .................... 380
33 Laidlaw Inc Cl B ........................... 380
18 Varlen Corp ................................. 370
16 Goulds Pumps Inc ............................ 367
18 Keystone International Inc .................. 362
11 Kysor Industrial Corp ....................... 359
14 Graco Inc ................................... 343
14 +Rohr Inc .................................... 317
13 Watts Industries Inc Cl A ................... 310
10 Standex International Corp .................. 309
11 Pall Corp ................................... 281
12 Albany International Corp Cl A .............. 278
11 Robbins & Myers Inc. ........................ 275
45 UNR Industries Inc .......................... 270
18 +Cuno Inc .................................... 268
17 +Ladd Furniture Inc .......................... 249
15 Brush Wellman Inc. .......................... 246
10 McDermott International Inc ................. 166
28 +Air & Water Technology Corp.................. 161
11 +MagneTek Inc ................................ 142
235 +Radius Inc .................................. 125
63 +Rollins Environmental Services
Inc...................................... 110
10 Sealright Co ................................ 105
11 +Navistar International Corp ................. 100
--------
98,933
--------
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
Communication Services (2.7%)
460 Sprint Corp ................................. $18,343
216 GTE Corp .................................... 9,828
44 US West Inc ................................. 1,419
39 Century Telephone Enterprises
Inc...................................... 1,204
35 ALLTEL Corp ................................. 1,098
14 SBC Communications .......................... 724
31 Aliant Communications Co..................... 527
17 Frontier Corp ............................... 385
--------
33,528
--------
Consumer Cyclical (10.6%)
821 Wackenhut Corp .............................. 14,162
725 Caseys General Stores Inc ................... 13,594
124 Eastman Kodak Co ............................ 9,951
527 Russ Berrie & Co ............................ 9,486
224 True North Communications Inc................ 4,900
668 +Uno Restaurant Corp ......................... 4,425
318 Commercial Intertech Corp ................... 4,333
222 Walbro Corp. ................................ 4,051
349 Stride Rite Corp ............................ 3,490
54 Omnicom Group Inc ........................... 2,470
37 May Department Stores Co .................... 1,730
40 PHH Corp .................................... 1,720
47 +Fred Meyer Inc .............................. 1,668
33 Penney (J.C.) Co Inc. ....................... 1,609
28 +Nine West Group Inc ......................... 1,298
40 Gap Inc. .................................... 1,205
30 +Fruit of the Loom Inc ....................... 1,136
30 +Jones Apparel Group ......................... 1,121
40 Mattel Inc .................................. 1,110
40 +Lands' End Inc .............................. 1,060
27 Dayton Hudson Corp .......................... 1,060
56 The Limited Inc ............................. 1,029
22 Lancaster Colony Corp ....................... 1,012
40 Dun & Bradstreet Corp ....................... 950
20 TJX Cos Inc ................................. 947
33 Service Corp International .................. 924
36 +HSN Inc ..................................... 855
11 Gannet Inc .................................. 824
95 +Handleman Co ................................ 807
21 Tiffany & Co ................................ 769
20 Masco Corp .................................. 720
39 Wellman Inc ................................. 668
43 Genovese Drugs Stores ....................... 665
60 +Burlington Industries Inc ................... 660
17 SPX Corp .................................... 659
19 Hannaford Brothers Co ....................... 646
24 Stanhome Inc ................................ 636
11 Houghton Mifflin Co ......................... 623
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
10 NCH Corp .................................... $602
11 Meredith Corp ............................... 580
13 Hughes Supply Inc ........................... 561
16 Belo (AH) Corp .............................. 558
21 +CSS Industries Inc .......................... 546
123 Ekco Group Inc .............................. 538
35 +National Education Corp ..................... 534
12 +Volt Information Sciences Inc ............... 525
16 Wiley (John) & Sons ......................... 516
21 Donnelly Corp ............................... 514
48 +Best Buy Co Inc ............................. 510
19 Modine Manufacturing ........................ 508
29 +AnnTaylor Stores Corp ....................... 507
26 Sturm Ruger & Co Inc ........................ 504
54 Blessings Corp .............................. 503
50 Crown Crafts Inc ............................ 500
35 Falcon Products Inc ......................... 499
48 +K mart Stores ............................... 498
10 TRW Inc. .................................... 495
11 Genuine Parts Co ............................ 491
37 +Johnson Worldwide Association
Inc Cl A ................................. 490
35 ADVO Inc .................................... 490
16 American List Corp. ......................... 486
26 Sotheby's Holdings Inc Cl A ................. 481
47 Graphic Industries Inc....................... 476
16 La-Z Boy Inc ................................ 472
10 Whirlpool Corp .............................. 466
38 Fingerhut Cos Inc. .......................... 465
10 Harcourt General Corp. ...................... 461
10 McGraw-Hill Cos Inc ......................... 461
39 +Lifetime Hoan Corp .......................... 458
29 Osh Kosh B'Gosh Cl A ........................ 442
18 Bassett Furniture Industries Inc............. 441
24 Brown Group Inc ............................. 441
10 Tandy Co .................................... 440
16 Tennant Co .................................. 440
17 +Christiana Cos............................... 438
20 Lawson Products Inc ......................... 437
16 Unitog Co ................................... 436
74 +American Media Inc........................... 435
31 +Information Resources Inc ................... 434
11 Hasbro Inc .................................. 428
18 Waverly Inc ................................. 427
14 Circuit City Store Inc ...................... 422
12 Plenum Publishing Corp ...................... 420
67 PT Tri Polyta Indonesia ADR ................. 419
11 New York Times Co Cl A ...................... 418
49 +Syms Corp ................................... 416
21 Delechamps Inc .............................. 407
10 Apogee Enterprises Inc ...................... 398
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
15 +MacFrugals Bargains Closeouts ............... $392
20 Alico Inc ................................... 375
11 Dow Jones & Co Inc .......................... 373
23 Strawbridge & Clothier ...................... 365
91 +Topps Co Inc ................................ 364
11 +Gelman Sciences Inc ......................... 358
18 Cooper Tire & Rubber ........................ 356
18 Maytag Corp ................................. 356
36 +Playboy Enterprises Inc Cl B ................ 351
11 Echlin Inc. ................................. 348
13 Guilford Mills Inc .......................... 346
12 Starrett (L.S) Co Cl A ...................... 341
10 Cognizant Corp .............................. 330
13 American Business Products .................. 327
14 Lee Enterprises Inc.......................... 326
22 Duty Free International Inc ................ 319
75 +Service Merchandise Inc ..................... 319
10 Dillard Department Stores ................... 309
12 Standard Products Co ........................ 306
10 Black & Decker Corp ......................... 301
12 Arvin Industries Inc ........................ 297
11 Stanley Works ............................... 297
10 American Greetings Cl A ..................... 284
13 Smart & Final Inc ........................... 281
31 +GRC International Inc ....................... 252
11 +Woolworth Corp .............................. 241
11 +Gibson Greetings Inc ........................ 216
13 Cadmus Communications Corp .................. 202
24 +Intelligent Electronics Inc. ................ 192
18 Hancock Fabrics Inc ......................... 187
10 CPI Corp .................................... 168
10 Viad Corp ................................... 165
13 Ennis Business Forms ........................ 146
38 CML Group Inc ............................... 128
3 +Payless Shoesource Inc ...................... 113
3 +ACNielsen Corp .............................. 45
--------
132,883
--------
Consumer Staples (4.9%)
334 WLR Foods Inc ............................... 4,133
96 =Revco D.S. Inc .............................. 3,552
40 Cardinal Health Inc ......................... 2,330
93 IBP Inc ..................................... 2,255
11 Unilever NV ADR ............................. 1,928
86 Archer Daniels Midland Co ................... 1,892
27 Kellogg Co .................................. 1,772
44 Anheuser- Busch Cos Inc. .................... 1,760
51 Tyson Foods Inc Cl A ........................ 1,747
50 +Viacom Inc Cl B ............................. 1,744
45 Albertsons Inc .............................. 1,603
16 Kimberly-Clark Corp ......................... 1,524
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
28 Conagra Inc ................................ $1,393
37 Heinz H J Co ................................ 1,332
35 UST Inc. .................................... 1,133
12 Colgate- Palmolive Co ....................... 1,107
32 Sysco Corp .................................. 1,044
33 Bergen Brunswig Corp ........................ 941
103 +Perrigo Co .................................. 940
34 Kelly Services Inc Cl A ..................... 918
42 Flowers Industries Inc ...................... 903
64 Ruddick Corp ................................ 896
23 Quaker Oats Co .............................. 877
11 CPC International Inc. ...................... 852
13 General Mills Inc ........................... 824
11 Ralston Purina Co ........................... 807
43 International Multifoods Corp ............... 779
19 Tambrands Inc. .............................. 777
33 Church & Dwight Co Inc ...................... 755
13 Paychex Inc ................................. 669
21 TCA Cable TV Inc ............................ 633
11 Avon Products Inc ........................... 628
39 Carter Wallace Inc .......................... 609
18 Dean Foods Co................................ 580
29 +International Dairy Queen Inc
Cl A..................................... 580
12 +Kroger Co ................................... 558
12 McDonald's Corp. ............................ 543
15 Universal Foods Corp ........................ 529
12 Hershey Foods Corp .......................... 525
13 Rite Aid Corp. .............................. 517
13 Tootsie Roll Industries ..................... 515
27 Coors (Adolph) Co Cl B....................... 513
22 Banta Corp. ................................. 503
27 +Ruby Tuesday Inc ............................ 499
10 Longs Drug Stores Inc........................ 491
13 National Presto Industries .................. 486
26 ABM Industries Inc .......................... 481
56 Bridgford Foods Corp ........................ 476
14 +Canandaigua Wine Co Cl B .................... 469
14 Harland Co. ................................. 462
11 +Chris Craft Industries Inc .................. 461
23 Luby's Cafeterias Inc. ...................... 457
11 American Stores Co .......................... 450
21 Nash Finch Corp ............................. 446
62 +Shoney's Inc ................................ 434
10 +CVS Corp .................................... 412
30 +Foodbrands America Inc ...................... 412
25 Goodmark Foods Inc .......................... 412
14 Dreyers Grand Ice Cream Inc ................. 406
10 +Ceridian Corp ............................... 405
14 First Brands Corp ........................... 397
17 Whitman Corp ................................ 389
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
20 Blair Corp .................................. $385
26 Dames & Moore Inc ........................... 380
21 Lance Inc ................................... 378
10 Giant Food Inc Cl A ......................... 345
10 Deluxe Corp ................................. 327
22 +AMC Entertainment Inc ....................... 316
32 +Buffets Inc ................................. 292
11 +Carmike Cinemas Inc. Cl A ................... 279
16 Arbor Drugs Inc ............................. 278
17 Savannah Foods & Industries ................. 230
14 Michael Foods Inc ........................... 179
10 Rykoff-Sexton Inc ........................... 159
10 Dial Corp ................................... 148
12 A.T. Cross Co Cl A .......................... 140
--------
62,701
--------
Energy (14.1%)
930 Exxon Corp .................................. 91,140
105 Royal Dutch Petroleum Co ADR ................ 17,929
79 Mobil Corp. ................................. 9,658
128 Chevron Corp ................................ 8,320
323 +Tuboscope Vetco International
Corp ..................................... 5,006
46 Amoco Corp .................................. 3,714
50 Anadarko Petroleum Co ....................... 3,237
141 +Global Marine Inc ........................... 2,908
43 +ENSCO International Inc ..................... 2,085
25 Tosco Corp .................................. 1,978
17 Schlumberger Ltd ............................ 1,698
52 +Weatherford Enterra Inc ..................... 1,560
35 Phillips Petroleum Co. ...................... 1,549
11 Atlantic Richfield .......................... 1,459
13 Texaco Inc .................................. 1,276
49 Occidental Petroleum Corp ................... 1,145
58 +Nabors Industries Inc ....................... 1,116
40 Georgia Gulf Corp ........................... 1,075
23 +Smith International Inc ..................... 1,032
20 +Triton Energy Ltd ........................... 970
18 +BJ Services Co............................... 918
24 Parker & Parsley Petroleum Co ............... 882
28 Dresser Industries Inc ...................... 868
36 USX-Marathon Group .......................... 859
24 Mapco Inc ................................... 816
53 Quaker State Corp ........................... 749
14 Helmerich & Payne Inc ....................... 730
23 Valero Energy Corp .......................... 658
11 Amerada Hess Corp. .......................... 637
64 Ranger Oil Ltd............................... 632
31 Wiser Oil Co ................................ 612
11 Murphy Oil Corp ............................. 612
10 Halliburton Co .............................. 602
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
17 Apache Corp ................................. $601
23 Landauer Inc ................................ 564
34 +HS Resources Inc ............................ 561
39 Berry Petroleum Cl A ........................ 561
11 Burlington Resources Inc .................... 554
17 Ultra Diamond Shamrock Corp.................. 538
32 Getty Petroleum Corp ........................ 520
14 Vintage Petroleum Inc ....................... 483
25 Sevenson Environmental
Services Inc.............................. 456
148 +Harken Energy Corp .......................... 444
47 +Allied Waste Industrials Inc ................ 435
16 Holly Corp .................................. 428
10 +Barrett Resources Corp ...................... 426
12 Baker Hughes Inc ............................ 414
16 Sun Co ...................................... 390
30 +Crown Central Petroleum Cl A ................ 371
12 Ashland Coal Inc ............................ 333
12 +Varco International Inc ..................... 278
27 +Parker Drilling Co .......................... 260
10 +Oryx Energy Co .............................. 248
15 +Pool Energy Services Co ..................... 231
13 +Plains Resources Inc ........................ 203
10 +Santa Fe Energy Resources ................... 139
11 +Hondo Oil & Gas Co .......................... 120
--------
177,988
--------
Financial (11.1%)
1,027 State Auto Financial Corp ................... 18,486
1,021 South West Property Trust ................... 17,229
220 Progressive Corp ............................ 14,823
230 Commerce Bancshares Inc ..................... 10,638
221 Universal Health Real Estate
Investment Trust......................... 4,530
336 Western Investment Real Estate
Investment Trust......................... 4,368
30 Summit Bancorp .............................. 1,312
40 Equifax Inc. ................................ 1,225
86 Hibernia Corp Cl A .......................... 1,139
40 Paine Webber Group Inc ...................... 1,125
21 Lincoln National Corp Ltd. .................. 1,102
20 Comerica Inc ................................ 1,047
30 Southtrust Corp ............................. 1,046
22 +Policy Management Systems
Corp Technologies......................... 1,015
30 Mercantile Bankshares Corp .................. 960
10 Loews Corp .................................. 942
11 Transatlantic Holdings Inc .................. 885
20 AFLAC Inc ................................... 855
67 First Union Real Estate Equity .............. 829
18 U.S. Bancorp ................................ 809
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
14 Chubb Corp .................................. $752
10 UNUM Corp ................................... 722
17 Bancorp Hawaii Inc. ......................... 714
33 City National Corp .......................... 714
18 Wilmington Trust Co ......................... 711
18 Capitol American Financial Corp ............. 655
16 Home Beneficial Corp ........................ 606
10 Forest City Enterprises Inc Cl A ............ 605
23 American Heritage Life Investors ............ 604
18 RLI Corp .................................... 601
15 Financial Trust Corp ........................ 598
26 F & M National Corp ......................... 556
22 BRE Properties Inc .......................... 544
14 New York Bancorp Inc ........................ 542
47 IRT Property Co ............................. 540
12 National City Corp .......................... 538
22 Pennsylvania Real Estate
Investment Trust......................... 536
16 Dauphin Deposit Corp ........................ 528
24 MGI Properties .............................. 528
41 CRIIMI MAE Inc. ............................. 528
28 LTC Properties Inc .......................... 518
19 Federal Realty Investment Trust.............. 515
27 Mid America Bancorp ......................... 513
13 Liberty Corp ................................ 510
21 Wellsford Residential Property
Trust .................................... 509
15 +MAIC Holdings Inc ........................... 508
22 Crawford & Co ............................... 503
12 CNB Bancshares Inc .......................... 501
15 Omega Healthcare Investors Inc .............. 499
10 Liberty Bancorp Inc ........................ 497
18 Zenith National Insurance ................... 493
13 National Health Investors Inc. .............. 492
31 Commercial Net Lease Realty ................. 492
33 Burham Pacific Properties Inc ............... 491
29 Kranzco Realty Trust ........................ 489
20 Health Care Real Estate
Investment Trust Inc ..................... 487
15 +UICI ........................................ 487
20 Nationwide Health Properties Inc............. 485
13 Student Loan Corp ........................... 484
12 Protective Life Corp ........................ 478
20 American Health Properties Inc............... 477
17 CBT Corp .................................... 467
10 Trenwick Group Inc .......................... 463
14 United Bankshares Inc ....................... 462
12 JSB Financial Inc ........................... 456
14 First Financial Bancorp ..................... 455
14 Wesbanco Inc ................................ 455
13 Firstbank Illinois Co ....................... 452
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
34 Hilb, Rogal & Hamilton Co ................... $451
13 Susquehanna Bancshares Inc .................. 450
11 Farmers Capital Bank Corp ................... 448
11 UMB Financial Corp .......................... 446
15 First Michigan Bank Corp .................... 444
12 First Financial Corp ........................ 444
24 Baldwin & Lyons Inc ......................... 441
18 Hubco Inc ................................... 441
17 McGrath Rent Corp ........................... 438
11 BT Financial Corp ........................... 436
11 United Carolina Bancshares .................. 435
14 Deposit Guaranty Corp ....................... 434
14 Gallagher (Arthur J.) & Co .................. 434
36 EMC Insurance Group Inc ..................... 432
18 F & M Bancorp ............................... 432
14 Argonaut Group Inc .......................... 431
14 S&T Bancorp Inc ............................. 431
23 First Commonwealth Financial
Corp ..................................... 428
16 BSB Bancorp Inc ............................. 428
10 Associated Banc Corp ........................ 425
20 Heritage Financial Service Inc .............. 425
12 Whitney Holding Corp ........................ 425
13 First Midwest Bancorp Inc ................... 424
16 First Merchants Corp ........................ 424
10 US Bancorp Inc............................... 424
11 Midland Co .................................. 424
19 SEI Corp .................................... 423
13 Merchants New York Bancorp .................. 423
27 Avemco Corp ................................. 422
11 Frontier Insurance Group Inc ................ 421
11 National Communications
Bancorp.................................. 421
15 American Financial Enterprise
Inc...................................... 420
13 Corus Bankshares Inc ........................ 419
13 First United Bancshares Inc ................. 419
18 Allied Capital Commerical Corp .............. 419
11 Fort Wayne National Corp .................... 418
11 Selective Insurance Group ................... 418
17 First Source Corp ........................... 417
22 American Federal Bank ....................... 415
10 Banknorth Group Inc ......................... 415
42 Berkshire Realty Co ......................... 415
15 Brenton Banks Inc ........................... 414
15 Community First Bankshares .................. 413
24 Mid Am Inc .................................. 411
13 Citizens Banking Corp ...................... 410
14 National City Bancshares Inc ................ 410
11 First Commercial Corp ....................... 408
11 One Valley Bancorp Inc ...................... 408
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
13 Albank Financial Corp ....................... $408
233 CRI Liquidating Real Estate
Investment Trust Inc ..................... 408
14 Acordia Inc ................................. 406
14 Bank of Granite Corp ........................ 406
10 Hancock Holding Co........................... 405
10 Horace Mann Educator Corp.................... 404
23 Magna Bancorp Inc ........................... 403
22 NYMagic Inc ................................. 396
10 Safeco Corp ................................. 394
15 First Western Bancorp Inc ................... 394
18 Fulton Financial Corp ....................... 387
40 Gainsco Inc ................................. 385
18 Trustco Bank Corp ........................... 385
45 Cash America International Inc. ............. 383
10 Suffolk Bancorp ............................. 383
15 Keystone Financial Inc ...................... 375
14 Poe & Brown Inc ............................. 371
14 National Penn Bancshares Inc ................ 366
13 Bancorp South Inc ........................... 361
10 Tompkins County Trustco Inc ................. 334
13 HCC Insurance Holdings Inc .................. 312
11 Valley National Bancorp ..................... 282
13 USF&G Corp .................................. 271
10 First Commerce Bancshares ................... 265
20 Citizens Inc Cl A ........................... 170
12 Taubman Centers Inc ......................... 155
12 ALFA Corp ................................... 152
3 +Echelon International Corp .................. 47
--------
139,987
--------
Health Care (7.0%)
341 +Amgen Inc. .................................. 18,542
242 Columbia Healthcare Corp .................... 9,862
86 Bristol-Myers Squibb Co. .................... 9,353
226 Pharmacia & Upjohn Inc ...................... 8,955
331 +Tecnol Medical Products Inc. ................ 5,006
42 American Home Products Corp.................. 2,462
33 Schering-Plough Corp. ....................... 2,137
125 Mylan Laboratories Inc ...................... 2,094
53 +Centocor Inc ................................ 1,895
57 +Forest Laboratories Inc ..................... 1,867
24 Warner Lambert Co ........................... 1,800
81 +Nellcor Puritan Bennett Inc ................. 1,772
36 +HealthCare COMPARE Corp ..................... 1,525
72 +Value Health Inc. ........................... 1,404
15 +Pacificare Health Systems Inc ............... 1,279
30 Beckman Instruments Inc ..................... 1,151
30 +HEALTHSOUTH Corp ............................ 1,144
19 +Boston Scientific Corp ...................... 1,140
25 +Watson Pharmaceuticals Inc................... 1,123
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
77 +Horizon/CMS Healthcare Corp ................. $972
30 +Vencor Inc .................................. 949
18 DENTSPLY International Inc................... 855
38 +Tenet Healthcare Corp ....................... 831
24 +Foundation Health Corp ...................... 762
28 Diagnostic Products Corp..................... 724
37 +Humana Inc .................................. 708
47 +NovaCare Inc ................................ 517
18 West Inc .................................... 508
11 Mallinckrodt Inc. ........................... 485
12 Seafield Capital Corp ....................... 465
17 +ALZA Corp ................................... 440
12 Chemed Corp ................................. 438
12 Allergan Inc. ............................... 427
10 +St. Jude Medical Inc. ....................... 426
17 +Acuson Corp.................................. 414
11 Bausch & Lomb Inc ........................... 390
37 +Medco Research Inc .......................... 388
33 +Epitope Inc ................................. 380
11 +Advanced Technology
Laboratories............................. 341
12 Bard (CR) Inc ............................... 336
22 Biomet Inc. ................................. 333
16 +Datascope Corp .............................. 320
21 Kinetic Concepts Inc ........................ 257
15 +Advanced Magnetics Inc ...................... 233
14 +Beverly Enterprises Inc...................... 179
10 +Systemix Inc ................................ 153
--------
87,742
--------
Technology (2.8%)
823 X-Rite Inc .................................. 13,580
239 +Trident Microsystems Inc .................... 4,033
42 First Data Corp ............................. 1,533
24 Raytheon Co ................................. 1,155
31 +Fiserv Inc .................................. 1,139
21 +Compuware Corp .............................. 1,053
22 +Litton Industries Inc ....................... 1,048
18 +Dell Computer Corp .......................... 956
42 +Structural Dynamics Research
Corp..................................... 840
72 +Novell Inc .................................. 682
27 +Bell Industries Inc ......................... 577
21 +Esterline Technologies Corp ................. 549
20 +Stratus Computer Inc. ....................... 545
12 Fluke Corp .................................. 535
23 Cubic Corp .................................. 532
21 +Boole & Babbage Inc ......................... 525
11 +Storage Technology Corp ..................... 524
11 +BRC Holdings Inc ............................ 492
23 +Apple Computer Inc .......................... 480
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
10 Interpublic Group of Cos Inc ................ $475
11 CTS Corp .................................... 470
36 Kaman Corp Cl A.............................. 468
84 +Borland International Inc.................... 457
14 Analysts International Corp ................. 395
162 +Executone Information Systems
Inc...................................... 385
14 +Advanced Micro Devices Inc .................. 361
11 +Keane Inc ................................... 349
17 MTS Systems Corp ............................ 340
13 +Tekelec ..................................... 205
10 EG&G Inc .................................... 201
41 +AST Research Inc ............................ 172
12 +Amdahl Corp ................................. 146
21 +Unisys Corp ................................. 142
12 +Intergraph Corp ............................. 123
--------
35,467
--------
Transportation (1.7%)
524 International Shipholding Corp .............. 9,694
326 +Yellow Corp.................................. 4,686
24 Burlington Northern Santa Fe
Corp..................................... 2,073
26 Alexander & Baldwin Inc...................... 650
29 Atlantic Southeast Airlines Inc. ............ 634
41 Hunt (JB) Transport Services Inc ............ 574
12 +Federal Express Corp. ....................... 534
42 Rollins Truck Leasing Corp .................. 530
50 +USA Truck Inc ............................... 400
44 Frozen Foods Express
Industries............................... 396
21 Arnold Industries Inc ....................... 333
10 +Swift Transportation Co...................... 235
12 Caliber Systems Inc ......................... 231
--------
20,970
--------
Utilities (9.2%)
727 Eastern Utilities Association................ 12,632
352 GPU Inc ..................................... 11,836
525 Public Service Co of North
Carolina.................................. 9,581
327 +Tucson Electric Power Co .................... 5,436
329 United Water Resources Inc .................. 5,141
222 Washington Energy Co ........................ 4,579
153 Northeast Utilities ......................... 2,027
53 Florida Progress Corp ....................... 1,709
73 Southern Co ................................. 1,652
32 El Paso Natural Gas ......................... 1,616
46 CMS Energy Corp ............................. 1,547
57 Scana Corp .................................. 1,525
67 Ohio Edison Co .............................. 1,524
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
35 Enron Corp .................................. $1,509
58 Potomac Electric Power Co.................... 1,493
45 Central Hudson Gas & Electric
Corp ..................................... 1,412
63 Montana Power Co ............................ 1,347
50 Boston Edison Co. ........................... 1,344
31 Nipsco Industries Inc........................ 1,228
30 Public Service Co of Colorado................ 1,166
32 +CalEnergy Inc ............................... 1,076
30 New England Electric ........................ 1,046
22 Duke Power Co ............................... 1,023
47 Pacific Gas & Electric Co. .................. 987
61 Midamerican Energy Holdings ................. 968
38 Puget Sound Power & Light ................... 912
34 Indiana Energy Inc .......................... 829
29 IPALCO Enterprises Inc....................... 790
40 Public Service Co of New
Mexico................................... 785
38 Edison International ........................ 755
20 Williams Cos Inc ............................ 731
25 MCN Corp Holding Co ......................... 722
29 LG & E Energy Corp .......................... 711
25 Black Hills Corp ............................ 703
32 New York State Electric & Gas
Corp...................................... 692
59 Central Maine Power Co. ..................... 686
13 Coastal Corp ................................ 635
21 Brooklyn Union Gas Co........................ 633
13 +Tejas Gas Corp............................... 619
30 American Water Works Inc..................... 619
27 Houston Industries Inc....................... 611
17 Southwestern Public Service ................. 601
14 National Fuel Gas Co ........................ 577
28 Pacificorp .................................. 574
18 IWC Resources Corp .......................... 560
13 California Water Services Co ................ 546
18 Energen Corp ................................ 544
21 Central & South West Corp ................... 538
27 Philadelphia Suburban Corp .................. 537
26 Nevada Power Co.............................. 533
19 TNP Entreprise Inc .......................... 520
10 Sonat Inc. .................................. 515
15 Northwestern Public Service Co............... 514
16 Idaho Power Co .............................. 498
12 Texas Utilities Co .......................... 489
20 South Jersey Industries Inc.................. 487
23 AGL Resources Inc ........................... 486
19 Connecticut Natural Gas Corp ................ 484
16 IES Industries Inc .......................... 478
20 Atmos Energy Corp ........................... 477
28 Cascade Natural Gas Corp .................... 476
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
15 E Town Corp ................................. $474
17 Aquarion Co ................................. 474
13 Hawaiian Electric Industries Inc............. 470
10 SJW Corp .................................... 469
16 New Jersey Resources Corp ................... 468
14 Cinergy Corp. ............................... 467
10 FPL Group Inc. .............................. 460
20 MDU Resources Group Inc ..................... 460
13 Eastern Enterprises Inc...................... 460
19 Laclede Gas Co .............................. 458
11 American Electric Power Co .................. 452
16 Bay State Gas Co............................. 452
13 Sig Corp Inc ................................ 450
24 Empire District Electric Co.................. 450
19 Commonwealth Energy System .................. 444
12 Cilcorp Inc ................................. 439
10 Pennsylvania Enterprises Inc ................ 439
20 Southern California Water Co ................ 435
39 +Citizens Utilities Co Cl B .................. 434
15 North Carolina Natural Gas Corp ............. 433
12 Orange & Rockland Utilities Inc.............. 430
12 Wicor Inc ................................... 430
18 Green Mountain Power Corp.................... 430
19 United Cities Gas Co......................... 428
15 WPS Resources Corp .......................... 428
19 UGI Corp .................................... 425
11 Dominion Resources Inc ...................... 424
18 Piedmont Natural Gas Inc .................... 421
13 Otter Tail Power Co ......................... 418
27 St Joseph Light & Power Co................... 415
17 Northwest Natural Gas Co .................... 408
20 Madison Gas & Electric Co.................... 405
17 PP & L Resources Inc ........................ 391
13 Oneok Inc. .................................. 390
10 Union Electric Co............................ 385
17 Washington Gas Light Co ..................... 385
18 Colonial Gas Co ............................. 383
12 United Illuminating Co....................... 377
12 Pacific Enterprises ......................... 365
13 Entergy Corp ................................ 361
40 +TPC Corp .................................... 360
104 +PhoneTel Technologies Inc ................... 332
15 Western Gas Resources Inc ................... 289
13 Yankee Energy System Inc..................... 278
11 Connecticut Energy Corp ..................... 234
11 Noram Energy Corp. .......................... 169
16 +Niagara Mohawk Power Corp.................... 158
--------
116,278
--------
Total Common Stocks
(Cost $914,983)........................... 947,801
--------
Number
of Shares Security Value
Tomorrow Long-Term Retirement Fund (continued)
Unit Investment Trust (4.5%)
(Cost $58,506)
775 Standard & Poor's
Depositary Receipts ................... $57,302
--------
Open End Investment Company (4.3%)
(Cost $53,052)
5,072 Bankers Trust EAFE Equity
Index Fund............................... 53,861
--------
Principal
Amount
U.S. Government
Obligations (20.2%)
U.S. Treasury Bond (2.8%)
$35,000 6.875% Due 8/15/25 .......................... 35,689
--------
U.S. Treasury Notes (17.4%)
121,000 5.500% Due 11/15/98 ......................... 120,187
98,000 6.500% Due 8/15/05 .......................... 98,628
--------
218,815
--------
Total U.S. Treasury Obligations
(Cost $254,302)........................... 254,504
--------
Total Investments (104.2%)
(Cost $1,280,843)......................... 1,313,468
Liabilities in Excess of
Other Assets (-4.2%)...................... (53,577)
--------
Total Net Assets (100.0%).................... $1,259,891
=========
<FN>
+ Non-income producing security.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
<TABLE>
<C> <S> <C>
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund
COMMON STOCKS (59.8%)
Basic Materials (4.2%)
1,037 Barrick Gold Corp ........................... $29,684
306 Dow Chemical Co ............................. 23,983
500 Quaker Chemical Corp ........................ 8,188
382 Lawter International Inc .................... 4,823
229 Stepan Chemical Co .......................... 4,666
178 Placer Dome Inc ADR ......................... 3,872
235 Coeur D'Alene Mines Corp .................... 3,554
55 Aluminum Co of America ...................... 3,506
78 Newmont Mining Corp ......................... 3,490
63 Consolidated Papers Inc ..................... 3,095
69 Bowater Inc ................................. 2,596
35 Pioneer Hi Bred International ............... 2,450
251 Ethyl Corp .................................. 2,416
76 Georgia Gulf Corp ........................... 2,042
30 Phelps Dodge Corp ........................... 2,025
23 Rohm & Haas Co .............................. 1,877
44 Olin Corp ................................... 1,655
38 Champion International Corp. ................ 1,643
27 Reynolds Metals Co .......................... 1,522
26 BetzDearborn Inc. ........................... 1,521
78 Crompton & Knowles Corp ..................... 1,501
28 Nucor Corp .................................. 1,428
31 International Flavors &
Fragrances Inc............................ 1,395
44 Chesapeake Corp ............................. 1,380
44 USX-U.S. Steel Group ........................ 1,380
73 Wausau Paper Mills Co ....................... 1,350
41 Inco Ltd .................................... 1,307
20 Sigma Aldrich Corp .......................... 1,249
44 Ferro Corp .................................. 1,248
30 Minerals Technologies Inc ................... 1,230
69 RPM Inc ..................................... 1,173
63 Glatefelter (PH) Co ......................... 1,134
58 Engelhard Corp .............................. 1,109
47 Cyprus Amax Minerals Co. .................... 1,099
34 Dexter Corp ................................. 1,084
20 Temple Inland Inc ........................... 1,082
23 Cleveland Cliffs Inc ....................... 1,044
42 Schulman Inc ................................ 1,029
76 Calgon Carbon Corp .......................... 931
65 Homestake Mining Co ......................... 926
15 Mead Corp ................................... 872
126 Battle Mountain Gold Co ..................... 866
18 Petrolite Corp .............................. 864
18 Great Lakes Chemical Corp. .................. 841
24 James River Corp of Virginia ................ 795
16 Union Camp Corp ............................. 764
20 Mosinee Paper Corp .......................... 710
15 Fuller H B Co ............................... 705
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
24 Westvaco Corp ............................... $690
13 Ameron Inc .................................. 671
18 Bemis Inc ................................... 664
24 Tuscarora Inc ............................... 657
36 Worthington Industries ...................... 652
97 Echo Bay Mines Ltd .......................... 643
31 Inland Steel Industries Inc ................. 620
19 Liqui-Box Corp .............................. 618
17 +Tremont Corp ................................ 614
24 International Aluminum Corp ................. 612
22 FAB Industries Inc .......................... 605
16 Ecolab Inc .................................. 602
18 Florida Rock Industries Inc ................. 590
21 MacDermid Inc ............................... 578
17 South Down Inc .............................. 529
16 Cambrex Corp ................................ 524
20 Sonoco Products Co .......................... 518
36 Tejon Ranch Co. ............................. 518
89 +Hecla Mining Co ............................. 490
13 Nalco Chemical Co ........................... 470
15 Puerto Rican Cement Inc ..................... 469
71 +Amax Gold Inc ............................... 453
12 Carpenter Technology Corp ................... 440
9 +MAXXAM Inc .................................. 429
23 Oregon Steel Mills .......................... 385
40 +Bethlehem Steel Corp. ....................... 360
--------
153,505
--------
Capital Goods (6.1%)
532 McDonnell Douglas Corp ...................... 34,048
321 Minnesota Mining &
Manufacturing Co ......................... 26,603
1,033 Raymond Corp ................................ 17,948
122 Boeing Co ................................... 12,978
200 +Analog Devices Inc. ......................... 6,775
200 +ADC Telecommunications Inc .................. 6,225
62 Emerson Electric Co. ........................ 5,999
291 Westinghouse Electric Corp .................. 5,784
100 York International Corp ..................... 5,588
159 WMX Technologies Inc. ....................... 5,187
337 Oil-Dri Corp America ........................ 5,055
109 Corning Inc ................................. 5,041
228 Penn Engineering &
Manufacturing Corp ....................... 4,674
66 Honeywell Inc. .............................. 4,340
76 Crown Cork & Seal Inc ....................... 4,133
338 +Nashua Corp. ................................ 4,056
236 +Vallen Corp ................................. 3,924
51 Fluor Corp .................................. 3,200
52 Sundstrand Corp ............................. 2,210
40 Tyco International Ltd ...................... 2,115
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
20 Textron Inc ................................. $1,885
27 Eaton Corp .................................. 1,883
50 Trinity Industries Inc ...................... 1,875
80 Allegheny Teledyne Inc ...................... 1,840
30 Miller (Herman) Inc ......................... 1,699
74 Premark International Inc ................... 1,647
19 Raychem Corp ............................... 1,522
34 Hubbell Inc Cl B ............................ 1,471
29 Dover Corp .................................. 1,457
44 HON Industries .............................. 1,452
27 Alco Standard Corp .......................... 1,394
62 Ametek Inc .................................. 1,380
53 Pall Corp ................................... 1,352
27 Kaydon Corp ................................. 1,272
102 Laidlaw Inc Cl B ............................ 1,173
35 Donaldson Co Inc ............................ 1,173
30 Parker Hannifin Corp ........................ 1,162
23 Precision Castparts Corp .................... 1,141
32 Pentair Inc ................................. 1,032
12 Northrop Gruman Corp ........................ 993
30 Standard Register Co ........................ 975
41 +Jacobs Engineering Group Inc ................ 969
15 Nordson Corp ................................ 956
23 Millipore Corp .............................. 952
13 General Dynamics ............................ 916
45 Keystone International Inc .................. 906
11 Grainger WW Inc ............................. 883
17 Harnischfeger Industries Inc. ............... 818
18 General Signal Corp ......................... 769
28 Duriron Co Inc .............................. 759
16 Cummins Engine Inc .......................... 736
18 Butler Manufacturing Co ..................... 729
20 Avery Dennison Corp ......................... 707
38 Gencorp Inc ................................. 689
17 +Sequa Corp Cl A ............................. 667
11 Barnes Group Inc ............................ 660
51 +Magnetek Inc ................................ 657
44 Daniel Industries ........................... 649
16 IDEX Corp ................................... 638
85 +Insituform Technologies Cl A ................ 627
27 Learonal Inc ................................ 621
19 Kysor Industrial Corp ....................... 620
20 Standex International Corp .................. 617
25 Baldor Electric Co .......................... 616
25 Brady W H Co ................................ 616
10 Carlisle Cos Inc ............................ 605
19 Stone & Webster Inc ......................... 603
26 Goulds Pumps Inc ............................ 596
18 Gleason Corp ................................ 596
11 NACCO Industries Inc Cl A ................... 588
24 Watts Industries Inc Cl A ................... 573
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
19 Commercial Metals ........................... $572
26 +Osmonics Inc ................................ 572
22 Graco Inc ................................... 539
10 Mine Safety Appliances Co ................... 532
28 Armor All Products Corp ..................... 532
57 +Thermo Fibertek Inc ......................... 531
23 +Lydall Inc .................................. 517
24 Moore Corp Ltd .............................. 489
17 +Bearings Inc ................................ 474
21 Cincinnati Milacron Inc ..................... 459
22 Varlen Corp ................................. 452
25 McDermott International Inc ................. 416
21 Granite Construction Inc .................... 399
17 +Rohr Inc .................................... 385
60 UNR Industries Inc .......................... 360
7 Briggs & Stratton Corp ...................... 308
18 Brush Wellman Inc. .......................... 295
51 +Air and Water Technologies
Corp..................................... 293
10 Ball Corp ................................... 260
129 +Rollins Environmental Inc ................... 226
--------
225,610
--------
Communications Services (1.1%)
237 GTE Corp .................................... 10,784
256 Sprint Corp ................................. 10,208
189 US West Inc ................................. 6,095
135 ALLTEL Corp ................................. 4,236
77 NYNEX Corp .................................. 3,706
72 Century Telephone Enterprises
Inc...................................... 2,223
44 Frontier Corp ............................... 995
42 Aliant Communications ....................... 714
--------
38,961
--------
Consumer Cyclical (8.5%)
836 May Department Stores Co .................... 39,083
641 Penney (J.C.) Co Inc. ....................... 31,249
334 Eastman Kodak Co ............................ 26,804
1,033 Russ Berrie & Co Inc ........................ 18,594
725 Wackenhut Corp Ser A ........................ 12,506
243 +Fred Meyer Inc .............................. 8,627
200 +Atmel Corp .................................. 6,625
415 Ruddick Corp ................................ 5,810
342 +National Education Corp ..................... 5,216
163 Gap Inc. .................................... 4,910
120 +Fruit of the Loom Inc ....................... 4,545
233 Sturm Ruger & Co Inc ........................ 4,514
450 +Playboy Enterprises Inc Cl B ................ 4,388
157 Mattel Inc .................................. 4,357
221 Caseys General Stores Inc ................... 4,144
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
351 +Lifetime Hoan Corp .......................... $4,124
105 Dayton Hudson Corp .......................... 4,121
224 The Limited Inc ............................. 4,116
161 Dun & Bradstreet Corp ....................... 3,824
48 Gannet Inc .................................. 3,594
10 Washington Post Co .......................... 3,351
118 Service Corp International .................. 3,304
49 +Vons Cos Inc ................................ 2,934
74 +Jones Apparel Group ......................... 2,766
60 Omnicom Group Inc ........................... 2,745
67 Masco Corp .................................. 2,412
36 Vulcan Materials Co ......................... 2,192
39 +Nine West Group Inc ......................... 1,809
49 Hannaford Brothers Co ....................... 1,666
63 +HSN Inc ..................................... 1,496
30 TRW Inc. .................................... 1,485
143 +K mart Stores ............................... 1,484
38 New York Times Co Cl A ...................... 1,444
31 Lancaster Colony Corp ....................... 1,426
30 Interpublic Group of Cos Inc ................ 1,425
129 +Burlington Industries Inc ................... 1,419
53 +Lands' End Inc .............................. 1,405
40 Belo (AH) Corp - Ser A ...................... 1,395
45 Dillard Department Stores ................... 1,389
35 Hasbro Inc .................................. 1,361
24 Houghton Mifflin Co ......................... 1,359
36 Tiffany & Co ................................ 1,319
29 Genuine Parts Co ............................ 1,294
19 +Scholastic Corp ............................. 1,278
24 Meredith Corp ............................... 1,266
47 Modine Manufacturing ........................ 1,257
27 Harcourt General ............................ 1,245
67 Sotheby's Holdings Cl A ..................... 1,240
18 VF Corp ..................................... 1,215
26 McGraw-Hill Cos Inc ......................... 1,199
27 Tandy ....................................... 1,188
25 Whirlpool Corp .............................. 1,166
24 TJX Cos Inc ................................. 1,137
34 Cognizant Corp .............................. 1,122
29 Liz Claiborne Inc. .......................... 1,120
14 Tribune Co. ................................. 1,104
26 Reebok International Ltd .................... 1,092
26 +CVS Corp .................................... 1,073
61 Wellman Inc ................................. 1,045
36 First Brands Corp ........................... 1,022
33 Circuit City Store Inc ...................... 994
17 Sherwin-Williams Co. ........................ 952
89 +Best Buy Co Inc ............................. 946
93 Stride Rite Corp ............................ 930
34 Stanhome Inc ................................ 901
22 +Ceridian Corp ............................... 891
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
45 Cooper Tire & Rubber ........................ $889
26 Dow Jones & Co Inc .......................... 881
20 Polaroid Corp ............................... 870
14 NCH Corp .................................... 843
17 Mercantile Stores ........................... 839
12 Armstrong World Industries Inc .............. 834
192 +Service Merchandise Inc ..................... 816
27 Black & Decker Corp ......................... 813
41 Maytag Corp ................................. 810
62 Fingerhut Cos Inc. .......................... 759
24 Echlin Inc. ................................. 759
41 Brown Group Inc ............................. 753
26 American Greetings Cl A ..................... 738
30 Donnelly Corp ............................... 735
21 McClatchy Newspapers Cl A ................... 735
11 + Culbro Corp ................................. 714
163 Ekco Group Inc .............................. 713
22 Wiley John & Sons ........................... 709
70 Graphic Industries Inc ...................... 709
27 +MacFrugals Bargains Closeouts ............... 705
50 ADVO Inc .................................... 700
113 +American Media Inc .......................... 664
15 +Volt Information Sciences Inc ............... 656
48 +Johnson Worldwide Associates
Inc Cl A................................. 636
22 Starrett LS Co Cl A ......................... 624
23 Stanley Works ............................... 621
24 +Christiana Cos .............................. 618
12 WD-40 Co .................................... 612
24 Standard Products Co ........................ 612
87 +Shoney's Inc ................................ 609
46 Kaman Corp Cl A ............................ 598
15 Apogee Enterprises Inc ...................... 596
30 Luby's Cafeterias Inc. ...................... 596
17 Plenum Publishing Corp ...................... 595
58 Crown Crafts Inc ............................ 580
21 Tennant Co .................................. 577
67 +Handleman Co ................................ 569
26 True North Communications ................... 569
26 +Woolworth Corp .............................. 569
37 Osh Kosh B'Gosh Cl A ....................... 564
23 Bassett Furniture Industries Inc ............ 563
21 Guilford Mills Inc .......................... 559
22 American Business Products .................. 553
12 OEA Systems Inc ............................. 549
21 +CSS Industries Inc .......................... 546
20 Unitog Co ................................... 545
25 Smart and Final Inc ......................... 541
86 PT Tri Polyta Indonesia ADR ................. 537
23 Lee Enterprises Inc ......................... 535
132 +Topps Co Inc ................................ 528
62 +Syms Corp ................................... 527
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
19 K2 Inc ...................................... $522
28 Walbro Corp. ................................ 511
26 Delechamps Inc .............................. 504
21 Waverly Inc ................................. 499
26 Alico Inc ................................... 487
16 American List Corp. ......................... 486
30 Strawbridge & Clothier ...................... 476
12 Knight- Ridder Inc .......................... 459
31 Duty Free International Inc ................. 449
15 Russell Corp ................................ 446
47 Blessings Corp .............................. 438
39 Hancock Fabrics Inc ......................... 405
8 Home Depot Inc .............................. 401
49 +Intelligent Electronics Inc. ................ 392
15 Arvin Industries Inc ........................ 371
22 CPI Corp .................................... 368
26 +Information Resources Inc ................... 364
32 Ennis Business Forms ........................ 360
19 Ogden Corp .................................. 356
18 +Gibson Greetings Inc ........................ 353
95 CML Group Inc ............................... 321
39 +GRC International Inc ....................... 317
18 +AnnTaylor Stores Corp ....................... 315
14 Lawson Products Inc ......................... 306
21 Falcon Products Inc ......................... 299
25 A.T. Cross Co Cl A .......................... 291
11 +ACNielsen Corp .............................. 166
6 +Echelon International Corp .................. 93
--------
313,941
--------
Consumer Staples (9.5%)
391 Kimberly-Clark Corp ......................... 37,243
1,016 +Viacom Inc. Cl B ............................ 35,433
517 Kellogg Co .................................. 33,928
1,453 Archer Daniels Midland Co.................... 31,966
762 Anheuser-Busch Cos Inc. ..................... 30,480
152 Unilever NV ADR ............................ 26,638
416 +Revco D.S. Inc .............................. 15,392
731 Goodmark Foods Inc .......................... 12,062
734 Genovese Drugs Stores ....................... 11,379
543 Dames & Moore Inc ........................... 7,941
174 Albertsons Inc .............................. 6,199
105 Cardinal Health Inc ......................... 6,116
201 IBP Inc ..................................... 4,874
51 Colgate-Palmolive Co. ....................... 4,705
129 Heinz H J Co ................................ 4,644
93 Conagra Inc ................................. 4,627
62 Ralston Purina Co............................ 4,549
230 ABM Industries Inc .......................... 4,255
105 IMC Global Inc .............................. 4,108
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
123 UST Inc. .................................... $3,982
50 CPC International Inc. ...................... 3,875
106 Sysco Corp .................................. 3,458
51 General Mills Inc ........................... 3,232
82 Tyson Foods Inc Cl A ........................ 2,809
49 Tambrands Inc. .............................. 2,003
42 +Kroger Co ................................... 1,953
48 Quaker Oats Co .............................. 1,830
82 Flowers Industries Inc ...................... 1,763
59 Bergen Brunswig Corp ........................ 1,682
26 Avon Products Inc ........................... 1,485
46 Dean Foods Co ............................... 1,484
32 McDonald's Corp. ............................ 1,448
36 Rite Aid Corp. .............................. 1,431
52 Kelly Services Inc Cl A ..................... 1,404
32 Hershey Foods Corp .......................... 1,400
45 TCA Cable TV Inc ............................ 1,356
143 +Perrigo Co .................................. 1,305
31 American Stores Co .......................... 1,267
24 Paychex Inc ................................. 1,235
12 Clorox Co. .................................. 1,205
74 Dial Corp ................................... 1,091
59 International Multifoods Corp ............... 1,069
49 +International Dairy Queen Inc
Cl A..................................... 980
18 Longs Drug Stores Inc ....................... 884
24 Universal Foods Corp ........................ 846
44 +Ruby Tuesday Inc ............................ 814
35 Whitman Corp ................................ 801
42 Coors (Adolph) Co Cl B....................... 798
24 Harland Co. ................................. 792
24 Deluxe Corp ................................. 786
22 Giant Food Inc Cl A ......................... 759
28 Amcast Industrial Corp ...................... 693
18 +King World Productions Inc .................. 664
36 Lance Inc ................................... 648
28 Banta Corp. ................................. 640
17 National Presto Industries .................. 635
72 Bridgford Foods Corp ........................ 612
28 Nash Finch Corp ............................. 595
13 Brown-Forman Corp Cl B ...................... 595
21 West Co ..................................... 593
14 +Chris Craft Industries Inc .................. 586
18 Winn Dixie Stores ........................... 569
43 WLR Foods Inc ............................... 532
80 +Uno Restaurant Corp ......................... 530
18 Supervalu Inc. .............................. 511
36 Savannah Foods & Industries ................. 486
14 Dreyers Grand Ice Cream Inc ................. 406
17 +Carmike Cinemas Inc. Cl A ................... 431
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
29 +Foodbrands America Inc ...................... $399
42 +Buffets Inc ................................. 383
19 Blair Corp .................................. 366
6 Tecumseh Products Co Cl B ................... 341
9 National Services Industries Inc ............ 336
20 +AMC Entertainment Inc ....................... 287
7 +Footstar Inc ................................ 174
--------
349,778
--------
Energy (9.9%)
543 Exxon Corp .................................. 53,214
216 Royal Dutch Petroleum Co ADR ............... 36,882
249 Atlantic Richfield .......................... 33,024
194 Mobil Corp. ................................. 23,716
1,236 Sevenson Environmental
Services Inc ............................. 22,557
195 Schlumberger Ltd ............................ 19,476
225 Amoco Corp .................................. 18,169
181 Texaco Inc .................................. 17,761
1,066 Quaker State Corp ........................... 15,057
732 +HS Resources Inc ............................ 12,078
730 +Tuboscope Vetco International
Corp ..................................... 11,315
160 Chevron Corp ............................... 10,400
534 Getty Petroleum Corp ........................ 8,677
101 Anadarko Petroleum Co ....................... 6,540
130 Phillips Petroleum Co. ...................... 5,752
259 Global Marine Inc ........................... 5,342
216 Occidental Petroleum Corp ................... 5,049
60 Halliburton Co .............................. 3,615
79 Tidewater Inc ............................... 3,575
135 USX-Marathon Group .......................... 3,223
103 +Dresser Industries Inc ...................... 3,193
39 Tosco Co .................................... 3,086
58 +Ensco International Inc ..................... 2,813
58 +Smith International Inc ..................... 2,603
45 +BJ Services Co .............................. 2,295
76 +Weatherford Enterra Inc ..................... 2,280
62 Parker & Parsley Petroleum Co ............... 2,278
115 +Nabors Industries Inc ....................... 2,214
43 Burlington Resources Inc .................... 2,166
60 Mapco Inc ................................... 2,040
60 Valero Energy Corp .......................... 1,717
164 Ranger Oil Ltd .............................. 1,619
43 Apache Corp ................................. 1,521
44 Baker Hughes Inc ............................ 1,518
27 Murphy Oil Corp ............................. 1,502
27 Helmerich & Payne Inc ....................... 1,407
44 Ultramar Diamond Shamrock
Corp..................................... 1,391
22 Amerada Hess Corp. .......................... 1,273
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
39 Sun Co Inc .................................. $951
31 Black Hills Corp ............................ 872
33 +Oryx Energy Co .............................. 817
11 Kerr Mcgee Corp ............................. 792
37 Wiser Oil Co ................................ 731
29 +Varco International Inc ..................... 671
19 Vintage Petroleum Inc ....................... 655
45 Berry Petroleum Cl A ........................ 647
26 Landauer Inc ................................ 637
14 +Barrett Resources Corp ...................... 597
11 Louisiana Land & Exploration Co ............. 590
21 Ashland Coal Inc ............................ 583
187 +Harken Energy Corp .......................... 561
60 +Allied Waste Industries Inc ................. 555
57 +Parker Drilling Co .......................... 549
20 Holly Corp .................................. 535
12 Ashland Inc ................................. 526
42 +Crown Central Petroleum Cl A ................ 520
--------
364,127
--------
Financial (6.0%)
1,029 Mid Am Inc .................................. 17,622
1,039 Kranzco Realty Trust ....................... 17,533
1,037 Commercial Net Lease Realty ................. 16,462
533 Avemco Corp ................................. 8,328
200 Southtrust Corp ............................. 6,975
100 Progressive Corp ............................ 6,738
181 First Data Corp ............................. 6,607
132 PHH Corp .................................... 5,676
100 Comerica Inc ................................ 5,238
227 Universal Health Realty Income .............. 4,654
100 Commerce Bancshares Inc ..................... 4,625
230 Mid America Bancorp ......................... 4,370
230 LTC Properties Inc .......................... 4,255
234 State Auto Financial Corp ................... 4,212
232 Magna Bancorp Inc ........................... 4,060
225 NYMAGIC Inc ................................. 4,050
233 South West Property Trust ................... 3,932
73 Lincoln National Corp Ltd. .................. 3,833
69 Chubb Corp .................................. 3,709
36 Loews Corp .................................. 3,393
100 Paine Webber Group Inc ...................... 2,813
49 U.S. Bancorp ................................ 2,202
19 Marsh & McLennan Cos ........................ 1,976
45 Bancorp Hawaii Inc. ......................... 1,890
142 Hibernia Corp Cl A .......................... 1,882
26 UNUM Corp ................................... 1,879
23 Transatlantic Holdings Inc .................. 1,852
84 City National Corp .......................... 1,817
46 Northern Trust Corp ......................... 1,668
18 TransAmerica Corp ........................... 1,424
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
22 St Paul Cos. Inc. Corp ...................... $1,290
28 National City Corp .......................... 1,257
29 Wilmington Trust Co ......................... 1,146
31 Dauphin Deposit Corp ........................ 1,023
18 Jefferson- Pilot Corp ....................... 1,019
16 Citizens Bancorp ............................ 992
24 Safeco Corp ................................. 947
41 Church & Dwight Co Inc ...................... 938
24 Home Beneficial Corp ........................ 909
21 Financial Trust Corp ........................ 837
10 Republic NY Corp ............................ 816
21 New York Bancorp Inc ........................ 814
20 Capitol American Financial Corp ............. 727
17 CNB Bancshares Inc .......................... 710
28 BRE Properties Inc .......................... 693
18 Midland Co .................................. 693
33 USF&G Corp .................................. 689
30 Crawford & Co ............................... 686
31 MGI Properties .............................. 682
17 BT Financial Corp ........................... 674
45 Burham Pacific Properties Inc ............... 669
17 Liberty Corp ................................ 667
20 United Bankshares Inc ....................... 660
20 First Midwest Bancorp Inc ................... 652
22 First Michigan Bank Corp .................... 652
17 JSB Financial Inc ........................... 646
17 Selective Insurance Group ................... 646
21 Argonaut Group Inc .......................... 646
25 McGrath Rent Corp ........................... 644
16 Tredegar Industries Inc ..................... 642
16 UMB Financial Corp .......................... 638
18 Whitney Holding Corp ........................ 637
12 Park National Corp .......................... 636
15 USBancorp Inc ............................... 636
26 Penn Real Estate Investment
Trust.................................... 634
16 United Carolina Bancshares .................. 632
17 First Commercial Corp ....................... 631
17 First Financial Corp ........................ 629
18 Firstbank Illinois Co ....................... 625
19 First Financial Bancorp ..................... 617
45 Commercial Intertech Corp ................... 613
19 Corus Bankshares Inc ........................ 613
19 First United Bancshares Inc ................. 613
15 Farmers Capital Bank Corp ................... 611
21 Bank of Granite Corp ........................ 609
12 Berkley W R Corp ............................ 609
33 Baldwin & Lyons Inc ......................... 606
22 CBT Corp .................................... 605
22 Community First Bankshares .................. 605
23 American Heritage Life Investors ............ 604
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
22 Zenith National Insurance ................... $602
28 Fulton Financial Corp ....................... 602
13 Trenwick Group Inc .......................... 601
25 F & M Bancorp Frederick ..................... 600
28 Heritage Financial Service Inc .............. 595
48 First Union Real Estate ..................... 594
19 S&T Bancorp Inc ............................. 584
21 Bancorp South Inc ........................... 583
24 Nationwide Health ........................... 582
331 CRI Liquidating REIT Inc..................... 579
68 Cash America International Inc. ............. 578
22 First Western Bancorp Inc ................... 577
27 F & M National Corp ......................... 577
50 IRT Property Co ............................. 575
15 Frontier Insurance Group Inc ................ 574
44 Western Investment Real Estate .............. 572
15 National Health Investors, Inc. ............. 568
17 Tompkins County Trustco Inc ................. 567
17 Omega Healthcare Investors Inc .............. 565
23 Hubco Inc ................................... 563
20 American Financial Enterprise
Inc...................................... 560
21 First Merchants Corp ........................ 556
21 Poe & Brown Inc ............................. 556
25 SEI Corp .................................... 556
26 Trustco Bank Corp ........................... 556
7 +Alexander's Inc ............................. 554
20 Brenton Banks Inc ........................... 552
20 Federal Realty Investment Trust ............. 542
29 First Commonwealth Financial
Corp ..................................... 540
45 EMC Insurance Group Inc ..................... 540
6 +Markel Corp ................................. 540
22 First Source Corp ........................... 539
21 Valley National Bancorp ..................... 538
22 Health Care REIT Inc ........................ 536
11 Mark Twain Bancshares Inc ................... 536
20 BSB Bancorp Inc ............................. 535
23 Allied Capital Commercial Corp .............. 535
22 Wellsford Residential Property
Trust..................................... 533
17 Albank Financial Corp ....................... 533
40 Hilb, Rogal & Hamilton Co ................... 530
28 American Federal Bank ....................... 528
41 CRIIMI MAE Inc. ............................. 528
22 American Health Properties .................. 525
20 National Pennsylvania
Bancshares Inc ........................... 522
16 Merchants New York Bancorp .................. 520
15 +MAIC Holdings Inc ........................... 508
16 Citizens Banking Corp ...................... 504
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
20 Keystone Financial Inc ...................... $500
50 Berkshire Realty Co ......................... 494
51 Gainsco Inc ................................. 491
21 Albany International Corp Cl A ............. 486
16 Acordia Inc ................................. 464
14 Gallagher (Arthur J.) & Co .................. 434
16 HCC Insurance Holdings Inc .................. 384
--------
221,537
--------
Health Care (4.4%)
373 Schering-Plough Corp. ....................... 24,152
591 Columbia Healthcare Corp .................... 24,083
118 Bristol-Myers Squibb Co. .................... 12,833
199 American Home Products Corp. ................ 11,666
187 +Amgen Inc. .................................. 10,168
232 Pharmacia & Upjohn Inc ...................... 9,193
94 Warner Lambert Co ........................... 7,050
89 +Boston Scientific Corp ...................... 5,340
100 +HEALTHSOUTH Corp ............................ 3,813
300 Kinetic Concepts Inc ........................ 3,675
347 +Medco Research Inc .......................... 3,644
204 Mylan Laboratories Inc ...................... 3,417
96 +Forest Laboratories Inc ..................... 3,144
142 +Nellcor Inc ................................. 3,106
84 +Centocor Inc ................................ 3,003
35 +Pacificare Health Systems Inc ............... 2,984
65 +Watson Pharmaceuticals ...................... 2,921
70 +Biogen Inc. ................................. 2,713
52 +HealthCare COMPARE Corp ..................... 2,203
98 +Tenet Healthcare Corp ....................... 2,144
101 +Value Health Inc. ........................... 1,969
61 +Foundation Health Corp ...................... 1,937
100 +Humana Inc .................................. 1,912
135 +Horizon/CMS Healthcare Corp ................. 1,704
33 Mallinckrodt Inc. ........................... 1,456
29 DENTSPLY International Inc. ................. 1,377
25 +St. Jude Medical Inc. ....................... 1,066
34 Diagnostic Products Corp .................... 880
31 +ALZA Corp ................................... 802
22 Allergan Inc. ............................... 784
50 Biomet Inc .................................. 756
21 Bausch & Lomb Inc ........................... 745
18 United States Surgical Corp ................. 709
62 +Novacare Inc ................................ 682
45 +Tecnol Medical Products Inc. ................ 681
24 +Acuson ...................................... 585
12 +Synetic Inc ................................. 582
20 Bard (CR) Inc ............................... 560
31 Carter Wallace Inc .......................... 484
37 +Beverly Enterprises Inc ..................... 472
41 +Epitope Inc ................................. 471
20 +Datascope Corp .............................. 400
--------
162,266
--------
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
Technology (2.0%)
729 X-Rite Inc .................................. $12,029
309 Beckman Instruments Inc ..................... 11,858
282 +Loral Space Communications .................. 5,182
100 +Parametric Technology ....................... 5,138
91 Raytheon Co ................................. 4,379
82 Wallace Computer Services Inc. .............. 2,829
56 +Litton Industries Inc ....................... 2,667
44 +Compuware Corp .............................. 2,205
119 Sensormatic Electronics Corp ................ 1,993
47 +Fiserv Inc .................................. 1,727
181 Novell Inc .................................. 1,714
37 Thiokol Corp ................................ 1,656
30 +Dell Computer Corp .......................... 1,594
31 +Policy Management Systems
Corp..................................... 1,430
19 +3Com Corp ................................... 1,394
51 +Stratus Computer Inc. ....................... 1,390
25 Teleflex Inc ................................ 1,303
49 +Advanced Micro Devices Inc .................. 1,262
53 +Structural Dynamics Research
Corp ..................................... 1,060
46 +Apple Computer Inc .......................... 960
18 +Storage Technology Corp ..................... 857
11 Harris Corp ................................. 755
29 +Boole & Babbage Inc ......................... 725
16 +BRC Holdings Inc ............................ 716
24 Analysts International Corp ................. 678
27 Cubic Corp .................................. 624
19 +Gelman Sciences Inc ......................... 617
14 CTS Corp .................................... 598
28 EG&G Inc .................................... 563
101 +Borland International Inc .................. 549
21 +Esterline Technologies Corp ................. 549
24 +Bell Industries Inc ......................... 513
42 +Amdahl Corp ................................. 509
213 +Executone Information Systems
Inc ...................................... 506
68 +Unisys Corp ................................. 459
27 +Trident Microsystems Inc .................... 456
12 +Advanced Technology
Laboratories ............................. 372
18 MTS Systems Corp ............................ 360
84 +AST Research Inc ............................ 352
--------
74,528
--------
Transportation (1.9%)
389 Burlington Northern Santa Fe
Corp..................................... 33,600
1,033 International Shipholding Corp .............. 19,111
345 Rollins Truck Leasing Corp .................. 4,356
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
36 +Federal Express Corp. ....................... $1,602
52 Alexander & Baldwin Inc ..................... 1,300
47 Atlantic Southeast Airlines Inc. ............ 1,028
67 Hunt J B Transport Services Inc ............. 938
41 Caliber Systems Inc ......................... 789
11 Union Pacific Corp .......................... 661
69 Frozen Foods Express
Industries............................... 621
25 +USAir Group Inc ............................. 584
34 Arnold Industries Inc ....................... 540
37 +Yellow Corp ................................. 532
65 +USA Truck Inc ............................... 520
19 Consolidated Freightways Inc ................ 423
19 Overseas Shipholding Group .................. 323
3 Florida East Coast Industries ............... 262
9 +Consolidated Freightways Corp ............... 80
--------
67,270
--------
Utilities (6.2%)
1,029 Public Service Co ........................... 18,779
838 St Joseph Light & Power ..................... 12,884
737 Cascade Natural Gas Corp .................... 12,529
735 United Water Resources Inc .................. 11,484
400 Illinova Corp ............................... 11,000
200 New England Electric ........................ 6,975
276 Southern Co ................................. 6,245
133 Enron Corp .................................. 5,736
200 Boston Edison Co. ........................... 5,375
231 Ohio Edison Co .............................. 5,255
255 Public Service Co of New
Mexico................................... 5,004
228 Philadelphia Suburban Corp .................. 4,532
130 GPU Inc ..................................... 4,371
231 Eastern Utilities Association ............... 4,014
231 +Tucson Electric Power Co .................... 3,840
119 Allegheny Power System Inc .................. 3,615
72 Duke Power Co ............................... 3,348
246 Northeast Utilities ......................... 3,260
154 Pacific Gas & Electric Co. .................. 3,234
98 Florida Progress Corp ....................... 3,161
76 Texas Utilities Co .......................... 3,097
119 Potomac Electric Power Co ................... 3,064
80 Williams Cos Inc ............................ 2,981
108 Scana Corp .................................. 2,889
85 CMS Energy Corp ............................. 2,858
81 +CalEnergy Inc ............................... 2,724
118 Edison International ........................ 2,345
42 Coastal Corp ................................ 2,053
64 MCN Corp Holding Co ......................... 1,848
47 Public Service Co of Colorado ............... 1,827
39 FPL Group Inc. .............................. 1,794
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
82 New York State Electric &
Gas Corp ................................. $1,773
43 Nipsco Industries ........................... 1,704
44 Dominion Resources Inc ...................... 1,694
54 Brooklyn Union Gas Co ....................... 1,627
32 El Paso Natural Gas ......................... 1,616
58 Entergy Corp ................................ 1,610
97 MidAmerican Energy Holdings ................. 1,540
37 National Fuel Gas Co ........................ 1,526
37 American Electric Power Co .................. 1,522
42 Southwestern Public Service ................. 1,486
28 Sonat Inc. .................................. 1,442
60 Puget Sound Power & Light ................... 1,440
63 Houston Industries Inc ...................... 1,425
67 Pacificorp .................................. 1,374
30 Pennsylvania Enterprises Inc ................ 1,316
50 Central & South West Corp ................... 1,281
47 IPALCO Enterprises .......................... 1,281
38 Cinergy Corp. ............................... 1,268
51 LG & E Energy Corp .......................... 1,250
40 Idaho Power Co .............................. 1,245
58 Montana Power Co ............................ 1,240
58 AGL Resources Inc ........................... 1,225
32 Hawaiian Electric Industries ................ 1,156
19 Consolidated National Gas Co ................ 1,050
27 Union Electric .............................. 1,040
42 Indiana Energy Inc .......................... 1,024
43 Washington Gas Light Co ..................... 973
42 PP & L Resources Inc ........................ 966
15 Columbia Gas System Inc ..................... 954
82 Central Maine Power Co. ..................... 953
46 American Water Works Inc .................... 949
30 Pacific Enterprises ......................... 911
29 Oneok Inc. .................................. 870
23 Eastern Enterprises Inc ..................... 814
24 IWC Resources Corp .......................... 747
15 +Tejas Gas Corp .............................. 714
16 California Water Services Co ................ 672
32 Nevada Power ................................ 656
14 Northern States Power........................ 642
26 Laclede Gas Co .............................. 627
17 Cilcorp Inc ................................. 623
40 Noram Energy Corp. .......................... 615
25 South Jersey Industries Inc ................. 609
26 Commonwealth Energy System .................. 608
19 United Illuminating Co ...................... 596
53 +Citizens Utilities Co Cl B .................. 590
17 Northwestern Public Service ................. 582
18 Otter Tail Power Co ......................... 578
20 North Carolina Natural Gas Corp ............. 577
24 Northwest Natural Gas Co .................... 576
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Medium-Term Retirement Fund (continued)
21 TNP Enterprise Inc .......................... $575
25 United Cities Gas Co ........................ 562
22 Connecticut Natural Gas Corp ................ 561
24 Piedmont Natural Gas Inc .................... 561
26 Yankee Energy System ........................ 556
24 MDU Resources Group Inc ..................... 552
61 +TPC Corp .................................... 549
29 Empire District Electric Co ................. 544
55 +Niagara Mohawk Power Corp ................... 543
15 Wicor Inc ................................... 538
24 UGI Corp .................................... 537
19 Aquarion Co ................................. 530
22 Atmos Energy Corp ........................... 525
22 Green Mountain Power Corp ................... 525
18 Bay State Gas Co ............................ 509
14 Orange & Rockland Utilities Inc ............. 502
23 Southern California Water Co ................ 500
17 New Jersey Resources Corp ................... 497
24 Washington Energy Co ........................ 495
24 Western Gas Resources Inc ................... 462
20 Enserch Corp ................................ 460
21 Colonial Gas Co ............................. 446
15 WPS Resources Corp .......................... 428
133 +PhoneTel Technologies Inc ................... 424
19 Madison Gas & Electric ...................... 385
--------
228,444
--------
Total Common Stocks
(Cost $2,127,837)......................... 2,199,967
---------
OPEN END INVESTMENT
COMPANY (3.9%)
(Cost $141,920)
13,639 Bankers Trust EAFE Equity
Index Fund .............................. 144,849
--------
UNIT INVESTMENT
TRUST (4.8%)
(Cost $180,814)
Standard & Poor's
2,400 Depositary Receipt ...................... 177,450
--------
Principal
Amount
U.S. GOVERNMENT
OBLIGATIONS (40.9%)
$425,000 U.S. Treasury Bill (11.4%)
Due 4/17/97 ................................. 418,868
--------
158,000 U.S. Treasury Bond (4.4%)
6.875% Due 8/15/25 .......................... 161,111
--------
Principal
Amount Security Value
Tomorrow Medium-Term Retirement Fund (continued)
U.S. Treasury Notes (25.1%)
$505,000 5.500% Due 11/15/98 ......................... $501,606
423,000 6.500% Due 8/15/05 .......................... 425,711
--------
927,317
--------
Total U.S. Treasury Obligations
(Cost $1,507,528)......................... 1,507,296
--------
Total Investments (109.4%)
(Cost $3,958,099)......................... 4,029,562
Liabilities in Excess of Other
Assets (-9.4%)............................ (348,377)
---------
Total Net Assets (100.0%).................... $3,681,185
=========
<FN>
+ Non-income producing security.
</FN>
</TABLE>
<TABLE>
<C> <S> <C>
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund
COMMON STOCKS (55.3%)
Basic Materials (3.0%)
377 Dow Chemical Co ............................. $29,547
1,500 Coeur D'Alene Mines Corp..................... 22,687
700 Quaker Chemical Corp ........................ 11,463
385 Barrick Gold Corp ........................... 11,021
60 Pioneer Hi Bred International ............... 4,200
335 Calgon Carbon Corp .......................... 4,104
700 +Hecla Mining Co ............................. 3,850
600 +Amax Gold Inc ............................... 3,825
68 Nucor Corp .................................. 3,468
46 Phelps Dodge Corp ........................... 3,105
137 Placer Dome Inc ADR ......................... 2,980
67 IMC Global Inc .............................. 2,621
36 Aluminum Co of America ...................... 2,295
51 Newmont Mining Corp ......................... 2,282
27 Rohm & Haas Co .............................. 2,204
40 Consolidated Papers Inc ..................... 1,965
60 Inco Ltd .................................... 1,913
41 International Flavors &
Fragrances Inc............................. 1,845
31 Reynolds Metals Co .......................... 1,748
44 Bowater Inc ................................. 1,655
160 Ethyl Corp .................................. 1,540
40 Olin Corp .................................. 1,505
30 Champion International Corp. ................ 1,298
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
40 Ferro Corp .................................. $1,135
21 Great Lakes Chemical Corp. .................. 982
35 Georgia Gulf Corp ........................... 941
30 Lubrizol Corp ............................... 930
22 Tambrands Inc. .............................. 899
44 Engelhard Corp .............................. 841
22 Ecolab Inc .................................. 828
20 BF Goodrich Co............................... 810
30 Schulman Inc ................................ 735
12 BetzDearborn Inc. ........................... 702
36 Crompton & Knowles Corp ..................... 693
22 Chesapeake Corp ............................. 690
10 Harso Corp .................................. 685
18 Bemis Inc ................................... 664
28 Cyprus Amax Minerals Co. .................... 655
20 Westvaco Corp ............................... 575
11 Precision Castparts Corp .................... 546
29 Glatefelter (PH) Co ......................... 522
28 Wausau Paper Mills Co ....................... 518
11 Fuller H B Co ............................... 517
37 Lawter International Inc .................... 467
9 +MAXXAM Inc .................................. 429
10 +Sealed Air Corp ............................. 416
60 Battle Mountain Gold Co ..................... 413
23 Oregon Steel Mills .......................... 385
12 Dexter Corp ................................. 383
41 +Bethlehem Steel Corp. ....................... 369
14 Sonoco Products Co .......................... 362
10 James River Corp of Virginia ................ 331
9 Carpenter Technology Corp ................... 330
7 Cleveland-Cliffs Inc ........................ 318
45 Echo Bay Mines Ltd .......................... 298
--------
142,490
--------
Capital Goods (5.7%)
605 Boeing Co.................................... 64,357
402 Minnesota Mining &
Manufacturing Co........................... 33,316
1,200 +Vallen Corp ................................. 19,950
319 York International Corp ..................... 17,824
320 +Parametric Technology Corp .................. 16,440
205 McDonnell Douglas Corp ...................... 13,120
268 Deere & Co .................................. 10,888
100 U.S. Robotics Corp .......................... 7,200
300 Daniel Industries Inc ....................... 4,425
44 Emerson Electric Co. ........................ 4,257
87 Corning Inc ................................. 4,024
117 WMX Technologies Inc. ....................... 3,817
192 Westinghouse Electric Corp .................. 3,816
58 Honeywell Inc. .............................. 3,813
200 Armor All Products Corp ..................... 3,800
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
66 Crown Cork & Seal Inc ....................... $3,589
200 Raymond Corp ................................ 3,475
100 +Analog Devices Inc. ......................... 3,387
100 +Atmel Corp .................................. 3,311
100 +ADC Telecommunications Inc .................. 3,113
47 Tyco International Ltd ...................... 2,485
48 Alco Standard Corp .......................... 2,478
23 Textron Inc ................................. 2,168
88 Premark International Inc.................... 1,958
29 Fluor Corp .................................. 1,820
78 Allegheny Teledyne Inc ...................... 1,794
21 Raychem Corp ............................... 1,683
62 Pall Corp ................................... 1,581
76 Sensormatic Electronics Corp ................ 1,273
22 Miller (Herman) Inc ......................... 1,246
23 Dover Corp .................................. 1,156
24 Hubbell Inc Cl B ............................ 1,038
22 Kaydon Corp ................................. 1,037
57 Gencorp Inc ................................. 1,033
31 HON Industries .............................. 1,023
24 Sundstrand Corp ............................. 1,020
100 +Novell Inc .................................. 947
23 Trinity Industries Inc ...................... 862
49 RPM Inc ..................................... 833
20 +BMC Software Inc ............................ 827
20 Thermo Electron Corp ........................ 825
20 +Cadence Design Systems Inc .................. 795
20 Kennametal Inc .............................. 778
20 Avery Dennison Corp ......................... 707
11 Nordson Corp ................................ 701
21 Standard Register Co ........................ 683
20 +USA Waste Services Inc ...................... 638
28 Ametek Inc .................................. 623
13 Cummins Engine Inc .......................... 598
10 Avnet Inc ................................... 582
20 Duriron Co Inc .............................. 542
10 +Gateway 2000 Inc ............................ 536
10 +Solectron Corp .............................. 534
20 Reynolds & Reynolds Cl A .................... 520
23 Cincinnati Milacron Inc ..................... 503
7 +FMC Corp .................................... 491
10 Harnischfeger Industries Inc. ............... 481
20 +360 Communications Co........................ 462
18 +Jacobs Engineering Group Inc ................ 425
7 Carlisle Cos Inc ............................ 424
21 Keystone International Inc .................. 423
8 Teleflex Inc ................................ 417
17 Watts Industries Inc Cl A ................... 406
9 Thiokol Corp ................................ 403
17 +Rohr Inc .................................... 385
11 Donaldson Co Inc ............................ 369
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
15 Albany International Corp Cl 'A' ............ $347
10 Leggett & Platt Inc ......................... 346
18 Brush Wellman Inc. .......................... 295
14 +Datascope Corp .............................. 280
--------
271,703
--------
Communication Services (3.3%)
1,863 GTE Corp .................................... 84,766
894 Sprint Corp ................................. 35,648
198 AT&T Corp ................................... 8,613
169 Bellsouth Corp. ............................. 6,823
91 Bell Atlantic Corp .......................... 5,892
99 NYNEX Corp .................................. 4,764
123 US West Inc ................................. 3,967
70 ALLTEL Corp ................................. 2,196
46 Century Telephone Enterprises
Inc...................................... 1,420
39 Frontier Corp ............................... 882
20 Southern New England
Telecommunications......................... 777
30 Aliant Communications Co .................... 510
--------
156,258
--------
Consumer Cyclical (5.6%)
853 Eastman Kodak Co ............................ 68,453
417 Vulcan Materials Co ......................... 25,385
800 Caseys General Stores Inc ................... 15,000
1,000 Dames & Moore Inc ........................... 14,625
300 +Fruit of the Loom Inc ....................... 11,362
229 May Department Stores Co .................... 10,706
194 Penney (J.C.) Co. Inc. ...................... 9,457
155 General Motors Corp ......................... 8,641
139 Albertsons Inc .............................. 4,952
300 +AMC Entertainment Inc ....................... 4,313
120 +Fred Meyer Inc .............................. 4,260
700 +American Media Inc .......................... 4,112
110 Masco Corp .................................. 3,960
200 Delechamps Inc .............................. 3,875
200 Blair Corp .................................. 3,850
200 Alico Inc ................................... 3,750
200 Russ Berrie & Co Inc ........................ 3,600
200 Wackenhut Corp Ser A ........................ 3,450
121 Mattel Inc................................... 3,358
46 Eaton Corp .................................. 3,208
104 Gap Inc. .................................... 3,133
40 Gannet Inc .................................. 2,995
60 Whirlpool Corp .............................. 2,798
69 Dayton Hudson Corp .......................... 2,708
83 Sysco Corp .................................. 2,708
94 Service Corp International .................. 2,632
141 The Limited Inc ............................. 2,591
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
6 Washington Post Co .......................... $2,011
42 Lancaster Colony Corp ....................... 1,932
168 +K mart Stores ............................... 1,743
35 Interpublic Group of Cos Inc ................ 1,662
41 Hasbro Inc .................................. 1,594
32 Harcourt General Inc......................... 1,476
38 Wallace Computer Services Inc. .............. 1,311
32 American Stores Co .......................... 1,308
28 Omnicom Group Inc ........................... 1,281
34 +Jones Apparel Group ......................... 1,271
15 Tribune Co. ................................. 1,183
35 Cognizant Corp .............................. 1,155
35 Dillard Department Stores Inc
Cl A..................................... 1,081
34 Circuit City Store Inc ...................... 1,024
40 +HSN Inc ..................................... 950
20 Harley Davidson Inc ......................... 940
83 Burlington Industries Inc ................... 913
33 Modine Manufacturing Co ..................... 883
13 +Scholastic Corp ............................. 874
27 South Down Inc .............................. 840
12 Armstrong World Industries Inc............... 834
35 Dun & Bradstreet Corp ....................... 831
27 Black & Decker Corp ......................... 813
20 Dow Jones & Co Inc .......................... 678
24 +Lands' End Inc .............................. 636
20 Echlin Inc. ................................. 633
18 Belo (AH) Corp............................... 628
57 +Best Buy Co ................................. 606
35 Viad Corp ................................... 578
30 Sotheby's Holdings Cl A ..................... 555
26 Cooper Tire & Rubber Co...................... 514
19 +MacFrugals Bargains Closeout ................ 496
10 Mercantile Stores Co ........................ 494
8 Houghton Mifflin Co ......................... 453
25 Lance Inc ................................... 450
10 +Chris Craft Industries Inc .................. 419
16 Lee Enterprises Inc ......................... 372
15 Arvin Industries Inc ........................ 371
22 CPI Corp .................................... 369
13 Stanley Works ............................... 351
81 +Service Merchandise Inc ..................... 344
100 CML Group Inc ............................... 338
22 Duty Free International Inc ................ 319
18 +AnnTaylor Stores Corp ....................... 315
6 Home Depot Inc .............................. 301
13 Caliber Systems Inc ......................... 250
11 +ACNielsen Corp .............................. 166
--------
268,428
--------
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
Consumer Staples (5.3%)
1,500 ABM Industries Inc .......................... $27,750
141 Unilever NV ADR ............................. 24,710
177 Kimberly-Clark Corp ......................... 16,859
1,030 Genovese Drugs Stores ....................... 15,965
177 Gillette Co. ................................ 13,762
173 Kellogg Co .................................. 11,353
324 +Viacom Inc. Cl 'B' .......................... 11,300
486 Archer Daniels Midland Co.................... 10,692
500 Goodmark Foods Inc .......................... 8,250
204 Anheuser- Busch Cos Inc. .................... 8,160
150 Coca Cola Co ................................ 7,894
57 Philip Morris Cos Inc. ...................... 6,469
174 +Revco D.S. Inc .............................. 6,438
178 Pepsico Inc. ................................ 5,207
223 Flowers Industries Inc ...................... 4,794
300 ADVO Inc .................................... 4,200
52 Ralston Purina Co ........................... 3,816
100 Quaker Oats Co............................... 3,813
200 Brown Group Inc ............................. 3,675
78 +Kroger Co ................................... 3,627
200 International Multifoods Corp ............... 3,625
99 Heinz H J Co ................................ 3,564
64 Conagra Inc ................................. 3,184
128 IBP Inc ..................................... 3,104
47 General Mills Inc ........................... 2,979
89 UST Inc. .................................... 2,881
31 Colgate- Palmolive Co ....................... 2,860
35 Avon Products Inc ........................... 1,999
38 Hershey Foods Corp .......................... 1,663
51 Dean Foods Co................................ 1,645
48 Tyson Foods Inc Cl A ........................ 1,644
23 +Vons Cos Inc ................................ 1,377
29 McDonald's Corp. ............................ 1,312
46 Bergen Brunswig Corp ........................ 1,311
30 +CVS Corp..................................... 1,237
31 Universal Foods Corp ........................ 1,093
10 Clorox Co. .................................. 1,004
23 +Ceridian Corp ............................... 931
20 +Symbol Technologies Inc. .................... 885
30 Supervalu Inc. .............................. 851
23 Hannaford Brothers Co ....................... 782
20 +King World Productions Inc .................. 738
26 Kelly Services Inc Cl A ..................... 702
21 Deluxe Corp ................................. 688
50 +NEXTEL Communications Inc Cl A .............. 653
30 +Mirage Resorts Inc. ......................... 649
13 Brown-Forman Corp Cl 'B' .................... 595
31 Coors (Adolph) Cl B ......................... 588
20 Callaway Golf Co ............................ 575
62 +Perrigo Co .................................. 566
50 +OfficeMax Inc. .............................. 531
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
35 Dial Corp.................................... $516
17 TCA Cable TV Inc ............................ 512
20 Sbarro Inc .................................. 510
10 Longs Drug Stores Inc ....................... 491
10 Coca Cola Entrerprises Inc .................. 485
35 Savannah Foods & Industries ................. 472
33 Ruddick Corp ................................ 462
20 Banta Corp. ................................. 457
16 First Brands Corp ........................... 454
20 International Game Technology ............... 365
22 Carter Wallace Inc .......................... 344
14 Church & Dwight Co .......................... 320
44 +Shoney's Inc ................................ 308
10 Dreyers Grand Ice Cream Inc ................. 290
30 +Buffets Inc ................................. 274
8 +Footstar Inc ................................ 199
--------
251,409
--------
Energy (12.8%)
738 Royal Dutch Petroleum Co ADR ................ 126,013
930 Exxon Corp .................................. 91,140
600 Mobil Corp. ................................. 73,350
1,105 Chevron Corp ................................ 71,825
374 Schlumberger Ltd ............................ 37,353
459 Amoco Corp .................................. 37,064
368 Texaco Inc .................................. 36,110
1,000 +HS Resources Inc ............................ 16,500
1,000 Getty Petroleum Corp ........................ 16,250
144 duPont (EI) de Nemours & Co ................. 13,590
700 +Tuboscope Vetco International
Corp..................................... 10,850
724 Quaker State Corp ........................... 10,227
500 Sevenson Environmental
Services Inc............................... 9,125
42 Atlantic Richfield .......................... 5,570
74 Anadarko Petroleum Co........................ 4,792
101 Phillips Petroleum Co. ...................... 4,469
300 Berry Petroleum Class A ..................... 4,313
300 +Crown Central Petroleum Cl A ................ 3,712
166 +Global Marine Inc ........................... 3,424
64 Burlington Resources Inc .................... 3,224
51 Halliburton Co............................... 3,073
128 Occidental Petroleum Corp ................... 2,992
124 USX-Marathon Group........................... 2,961
61 Baker Hughes Inc ............................ 2,105
59 Dresser Industries Inc ...................... 1,829
36 +ENSCO International Inc ..................... 1,746
36 Tidewater Inc ............................... 1,629
49 +Weatherford Enterra Inc ..................... 1,470
18 Tosco Corp................................... 1,424
73 +Nabors Industries Inc ....................... 1,405
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
39 Apache Corp ................................. $1,380
22 Amerada Hess Corp. .......................... 1,273
26 +Smith International Inc ..................... 1,167
21 +BJ Services Co .............................. 1,071
28 Parker & Parsley Petroleum Co ............... 1,029
28 Mapco Inc ................................... 952
28 Valero Energy Corp .......................... 802
75 Ranger Oil Ltd .............................. 741
13 Murphy Oil Corp ............................. 723
31 +Varco International Inc ..................... 717
20 Ultra Diamond Shamrock Corp ................. 632
58 +Parker Drilling Co .......................... 558
10 Helmerich & Payne Inc........................ 521
--------
611,101
--------
Financial (4.9%)
400 Summit Bankcorp ............................. 17,500
300 Comerica Inc ................................ 15,712
1,000 Avemco Corp ................................. 15,625
900 Kranzco Realty Trust ........................ 15,188
246 American Express Co. ........................ 13,899
314 PHH Corp .................................... 13,502
700 Mid Am Inc .................................. 11,987
400 Paine Webber Group Inc ...................... 11,250
700 Commercial Net Lease Realty ................. 11,113
93 Bankamerica Corp ............................ 9,277
500 State Auto Financial Corp ................... 9,000
500 South West Property Trust ................... 8,437
100 Progressive Corp ............................ 6,738
100 Commerce Bancshares Inc ..................... 4,625
300 Burham Pacific Properties Inc ............... 4,462
200 F & M National Corp ......................... 4,275
300 Hilb, Rogal & Hamilton Co ................... 3,975
300 CRIIMI Mae Inc. ............................. 3,863
200 American Federal Bank ....................... 3,775
200 First Commonwealth Financial
Corp..................................... 3,725
300 First Union Real Estate Trust ............... 3,712
2,100 CRI Liquidating REIT Inc .................... 3,675
300 EMC Insurance Group Inc ..................... 3,600
100 Southtrust Corp ............................. 3,488
300 IRT Property Co ............................. 3,450
65 Lincoln National Corp Ltd. .................. 3,413
45 UNUM Corp ................................... 3,251
32 Loews Corp .................................. 3,016
25 Marsh & McLennan Cos ........................ 2,600
36 Chubb Corp .................................. 1,935
40 National City Corp .......................... 1,795
33 +HealthCare COMPARE Corp ..................... 1,398
29 Bancorp Hawaii Inc. ......................... 1,218
32 Northern Trust Corp ......................... 1,160
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
20 +Policy Management Systems
Corp..................................... $922
20 U.S. Bancorp ................................ 899
11 Transatlantic Holdings Inc .................. 885
21 Wilmington Trust Co.......................... 830
38 City National Corp .......................... 822
38 USF&G Corp .................................. 793
10 American National Insurance Co. ............. 737
22 Dauphin Deposit Corp ........................ 726
10 Franklin Resource Inc ....................... 684
20 USLife Corp ................................. 665
10 State Street Boston Corp .................... 645
20 Charles Schwab Corp ......................... 640
4 +Echelon International Corp .................. 62
--------
234,949
--------
Health Care (8.7%)
1,897 Pharmacia & Upjohn Inc....................... 75,169
626 Bristol-Myers Squibb Co. .................... 68,077
1,658 Columbia Healthcare Corp .................... 67,564
1,050 American Home Products Corp. ................ 61,556
740 +Amgen Inc. .................................. 40,237
558 Schering-Plough Corp. ....................... 36,131
300 +HEALTHSOUTH Corp ............................ 11,437
101 Pfizer Inc .................................. 8,370
79 Warner Lambert Co ........................... 5,925
77 Cardinal Health Inc ......................... 4,485
100 Beckman Instruments Inc ..................... 3,837
165 +Tenet Healthcare Corp ....................... 3,609
60 +Boston Scientific Corp ...................... 3,600
300 +Epitope Inc ................................. 3,450
167 +Humana Inc .................................. 3,194
70 +Biogen Inc. ................................. 2,713
29 CPC International Inc. ...................... 2,247
131 Mylan Laboratories Inc ...................... 2,194
39 Mallinckrodt Inc. ........................... 1,721
65 +Value Health Inc. ........................... 1,268
31 +Forest Laboratories Inc ..................... 1,015
28 +Foundation Health Corp ...................... 889
31 +ALZA Corp ................................... 802
22 Allergan Inc. ............................... 784
21 Bausch & Lomb Inc ........................... 746
40 +Chiron Corp.................................. 745
19 +Centocor Inc ................................ 679
30 +Genzyme Corp ................................ 652
24 +Acuson Corp ................................. 585
20 Bard (CR) Inc ............................... 560
44 +Novacare Inc ................................ 484
11 Diagnostic Products Corp .................... 285
--------
415,010
--------
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
Technology (1.5%)
500 Equifax Inc. ................................ $15,312
192 +Dell Computer Corp .......................... 10,200
134 +Cisco Systems Inc ........................... 8,526
64 Intel Corp .................................. 8,380
200 +Bell Industries Inc ......................... 4,275
225 +Loral Space Communications .................. 4,134
106 First Data Corp ............................. 3,869
64 Lucent Technologies Inc ..................... 2,960
60 Raytheon Co ................................. 2,888
41 +Compuware Corp .............................. 2,055
35 +Litton Industries Inc ....................... 1,667
50 +Advanced Micro Devices Inc .................. 1,288
33 +Fiserv Inc .................................. 1,213
47 +Apple Computer Inc .......................... 981
23 +Stratus Computer Inc. ....................... 627
12 +Storage Technology Corp ..................... 571
16 +Structural Dynamics Research
Corp..................................... 320
60 +AST Research Inc ............................ 251
24 +Borland International Inc.................... 130
--------
69,647
--------
Transportation (0.5%)
169 Burlington Northern Santa Fe
Corp..................................... 14,597
200 International Shipholding Corp .............. 3,700
34 +Federal Express Corp. ....................... 1,513
37 Alexander & Baldwin Inc ..................... 925
20 Illinois Central Corp ....................... 640
20 +Consolidated Freightways Inc ................ 445
24 Arnold Industries Inc ....................... 381
26 Hunt J B Transportation
Services Inc............................. 364
19 Overseas Shipholding Group .................. 323
10 Consolidated Freightways Corp ............... 89
--------
22,977
--------
Utilities (4.0%)
1,200 +Tucson Electric Power Co .................... 19,950
1,000 Cascade Natural Gas Corp .................... 17,000
600 Boston Edison Co. ........................... 16,125
800 Eastern Utilities Association................ 13,900
600 Ohio Edison Co .............................. 13,650
700 United Water Resources Inc .................. 10,938
700 St Joseph Light & Power Co .................. 10,762
177 Southern Co ................................. 4,005
327 Central Maine Power Co. ..................... 3,801
88 Enron Corp .................................. 3,795
200 Empire District Electric .................... 3,750
200 Public Service Co of North
Carolina................................. 3,650
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
100 New England Electric ........................ $3,487
100 GPU Inc ..................................... 3,362
300 Citizens Utilities Co Cl B .................. 3,338
66 FPL Group Inc. .............................. 3,036
77 Williams Cos Inc ............................ 2,869
68 American Electric Power Co .................. 2,796
140 Edison International ........................ 2,783
100 Illinova Corp ............................... 2,750
119 +Pacific Gas & Electric Co. .................. 2,499
57 Texas Utilities Co .......................... 2,323
76 Allegheny Power System Inc .................. 2,308
63 Florida Progress Corp ....................... 2,032
76 Potomac Electric Power ...................... 1,957
40 Duke Power Co ............................... 1,860
69 Scana Corp .................................. 1,846
54 CMS Energy Corp ............................. 1,816
135 Northeast Utilities ......................... 1,789
52 +CalEnergy Inc ............................... 1,748
84 Pacificorp .................................. 1,722
34 Coastal Corp ................................ 1,662
73 Houston Industries Inc ...................... 1,652
37 Public Service Co of Colorado ............... 1,438
35 Dominion Resources Inc....................... 1,347
45 Entergy Corp................................. 1,249
52 New York State Electric &
Gas Corp................................... 1,124
32 Cinergy Corp. ............................... 1,068
19 Consolidated National Gas Co ................ 1,050
16 Columbia Gas System Inc ..................... 1,018
62 Midamerican Energy Holdings ................. 984
38 Central & South West Corp ................... 975
29 MCN Corp Holdings Co ........................ 837
15 El Paso Natural Gas Co ...................... 758
18 National Fuel Gas Co ........................ 742
24 Brooklyn Union Gas Co ....................... 723
20 Southwestern Public Service ................. 707
27 Puget Sound Power & Light ................... 648
14 Pennsylvania Enterprises Inc ................ 614
27 Montana Power Co ............................ 577
27 AGL Resources Inc ........................... 570
18 Idaho Power Co .............................. 560
15 Hawaiian Electric Industries Inc ............ 542
25 Public Service Co of New
Mexico................................... 491
20 Washington Gas Light Co ..................... 453
13 Indiana Energy Inc .......................... 317
--------
189,753
--------
Total Common Stocks
(Cost $2,551,213).......................... 2,633,725
---------
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Schedules of Investments at December 31, 1996
Number
of Shares Security Value
Tomorrow Short-Term Retirement Fund (continued)
UNIT INVESTMENT
TRUST (4.7%)
(Cost $223,347)
3,000 Standard & Poor's Depositary
Receipts................................... $221,813
--------
Principal
Amount
U.S. GOVERNMENT
OBLIGATIONS (56.4%)
U.S. Treasury Bill (16.5%)
$800,000 5.148% Due 4/17/97 .......................... 788,458
--------
U.S. Treasury Bond (5.8%)
270,000 6.875% Due 8/15/25 ......................... 275,316
--------
U.S. Treasury Notes (34.1%)
886,000 5.500% Due 11/15/98 ......................... 880,046
739,000 6.500% Due 8/15/05 .......................... 743,737
--------
1,623,783
---------
Total U.S. Government
Obligations ($2,688,637).................. 2,687,557
---------
Total Investments (116.4%)
(Cost $5,463,197).......................... 5,543,095
Liabilities in Excess of
Other Assets (-16.4%)...................... (780,425)
---------
Total Net Assets (100.0%).................... $4,762,670
=========
<FN>
+ Non-incoming producing security.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
TOMORROW FUNDS RETIREMENT TRUST
Statements of Assets and Liabilities at December 31, 1996
<S> <C> <C> <C> <C> <C>
Core Core Long- Medium- Short-
Large- Small- Term Term Term
Cap Cap Retirement Retirement Retirement
Assets ------- --------- --------- --------- ----------
Investments at value (+)..................................... $1,562,208 $1,908,577 $1,313,468 $4,029,562 $5,543,095
Cash........................................................... 29,185 82,628 98,368 0 10,204
Receivable for Fund shares sold................................ 0 0 89,094 438,193 962,406
Receivable for securities sold................................ 0 0 600 1,500 700
Receivable from Adviser........................................ 14,152 11,516 7,490 8,321 4,543
Dividends and interest receivable.............................. 2,519 4,150 5,835 21,104 33,446
Deferred organizational expenses and
prepaid expenses........................................... 41,717 41,762 38,625 38,632 38,635
--------- --------- --------- --------- ----------
1,649,781 2,048,633 1,553,480 4,537,312 6,593,029
--------- --------- --------- --------- ----------
Liabilities
Payable for investment securities purchased.................... 0 0 217,952 745,197 1,756,290
Payable for Fund shares redeemed.............................. 549 5,230 9 137 11
Payable to custodian bank...................................... 0 0 0 32,392 0
Accrued distribution fees payable
(Adviser Shares)........................................... 0 0 210 676 710
Accrued service fees payable
(Institutional Shares)..................................... 0 0 184 347 209
Organization costs payable..................................... 51,083 51,083 47,200 47,110 47,110
Other accrued expenses......................................... 27,017 24,929 28,034 30,268 26,029
--------- --------- --------- --------- ----------
78,649 81,242 293,589 856,127 1,830,359
--------- --------- --------- --------- ----------
Net Assets........$1,571,132 $1,967,391 $1,259,891 $3,681,185 $4,762,670
========= ========= ========= ========= =========
Net Assets Represented by:
Shares of beneficial interest (par $0.001)..................... $140 $264 $180 $457 $520
Paid-in surplus................................................ 1,464,282 1,762,989 1,229,337 3,612,663 4,686,086
Accumulated undistributed/(overdistributed)
net investment income...................................... (1,618) 1,401 (2,127) (1,936) (1,788)
Undistributed/(overdistributed) realized
gains on investments....................................... 157 2,112 (124) (1,462) (2,046)
Net unrealized appreciation on investments..................... 108,171 200,625 32,625 71,463 79,898
--------- --------- --------- --------- ----------
Net Assets ....................................................$1,571,132 $1,967,391 $1,259,891 $3,681,185 $4,762,670
========= ========= ========= ========= =========
Net Asset Value and Redemption Price
per Share:
Adviser Shares:
Net Assets..................................................... - - $977,702 $3,416,022 $4,458,598
Shares of beneficial interest issued and
outstanding................................................. - - 140,044 423,387 486,601
Net asset value per share...................................... - - $6.98 $8.07 $9.16
========= ========= ========= ========= =========
Institutional Shares:
Net Assets.....................................................$1,571,132 $1,967,391 $282,189 $265,163 $304,072
Shares of beneficial interest issued and
outstanding................................................ 140,123 263,461 40,014 33,733 33,016
Net asset value per share...................................... $11.21 $7.47 $7.05 $7.86 $9.21
========= ========= ========= ========= =========
(+) Investments at cost...................................... 1,454,037 1,707,952 1,280,843 3,958,099 5,463,197
Unrealized Appreciation/(Depreciation): *
Gross appreciation......................................... 127,114 251,739 49,958 115,060 113,965
Gross depreciation......................................... (18,943) (51,114) (17,333) (43,597) (34,067)
--------- --------- --------- --------- ----------
Net unrealized appreciation.................................... 108,171 200,625 32,625 71,463 79,898
========= ========= ========= ========= =========
<FN>
* Based on cost of securities for Federal Income tax purposes which does not
differ from book cost.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
TOMORROW FUNDS RETIREMENT TRUST
Statements of Operations for the Period Ended December 31, 1996
<S> <C> <C> <C> <C> <C>
Core Core Long Medium Short
Large Small Term Term Term
Cap* Cap* Retirement** Retirement** Retirement**
Investment Income:
Dividends.................................................... $20,123 $37,946 $6,931 $15,543 $14,285
Interest..................................................... 182 0 4,085 17,971 23,969
Other........................................................ 2,725 1,622 479 1,272 0
------- ------- ------ ------ ------
23,030 39,568 11,495 34,786 38,254
------- ------- ------ ------ ------
Expenses:
Investment advisory fees - Note 5............................ 5,907 9,076 2,533 7,501 7,488
Transfer agent fees and expenses
(Advisor Class)............................................. 0 0 10,042 10,042 10,042
Transfer agent fees and expenses
(Institutional Shares)...................................... 11,000 11,000 9,042 9,042 9,042
Custodian fees and expenses - Note 7......................... 11,028 13,201 8,958 10,132 6,187
Professional fees............................................ 29,000 30,000 28,420 31,576 31,050
Administration fees - Note 5................................. 709 1,089 304 900 899
Shareholders' reports........................................ 4,000 4,500 3,249 4,198 3,600
Fund accounting fees......................................... 25,000 25,000 24,750 24,750 24,750
Registration fees and expenses............................... 46,688 47,466 46,322 48,330 47,215
Trustees' fees and expenses.................................. 6,000 6,000 6,000 6,000 6,000
Amortization of organization costs........................... 9,453 9,453 8,612 8,597 8,597
Distribution fees (Adviser Shares) - Note 5.................. 0 0 1,320 4,325 4,574
Service fees (Institutional Shares) - Note 5................. 0 0 184 338 209
Other expenses............................................... 40 73 18 58 63
------- ------- ------ ------ ------
Total Expenses............................................... 148,825 156,858 149,754 165,789 159,716
Less fees waived by Adviser and
Administrator - Note 5...................................... (6,616) (10,165) (2,837) (8,401) (8,387)
Less expenses reimbursed
by Adviser - Note 5....................................... (130,419) (131,089) (140,534) (138,948) (132,675)
Less expenses paid indirectly - Note 7....................... (1,941) (468) (658) (1,269) (1,390)
------- ------- ------ ------ ------
Net Expenses................................................. 9,849 15,136 5,725 17,171 17,264
------- ------- ------ ------ ------
Net Investment Income........................................ 13,181 24,432 5,770 17,615 20,990
------- ------- ------ ------ ------
Realized and Unrealized Gain on
Investments
Net realized gain on investments............................ 29,755 25,143 7,802 24,377 232
Change in unrealized appreciation on
Investments.............................................. 108,171 200,625 32,625 71,463 79,898
------- ------- ------ ------ ------
Net Gain on Investments...................................... 137,926 225,768 40,427 95,840 80,130
------- ------- ------ ------ ------
Net Increase in Net Assets Resulting
from Operations............................................. $151,107 $250,200 $46,197 $113,455 $101,120
======= ======= ====== ======= =======
<FN>
* Commencement of operations February 6, 1996.
** Commencement of operations March 7, 1996.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
TOMORROW FUNDS RETIREMENT TRUST
Statements of Changes in Net Assets for the Period Ended December 31, 1996
<S> <C> <C> <C> <C> <C>
Core Core Long- Medium- Short-
Large- Small- Term Term Term
Cap* Cap* Retirement** Retirement** Retirement**
Operations:
Net investment income................................... $13,181 $24,432 $5,770 $17,615 $20,990
Net realized gain
on investments........................................ 29,755 25,143 7,802 24,377 232
Change in unrealized
appreciation on investments........................... 108,171 200,625 32,625 71,463 79,898
---------- ---------- ---------- --------- ----------
Net Increase in Net Assets
Resulting from Operations............................. 151,107 250,200 46,197 113,455 101,120
---------- ---------- ---------- --------- ----------
Dividends to shareholders from net investment income:
Adviser Shares 0 0 (7,897) (11,718) (22,778)
Institutional Shares (14,799) (23,031) 0 (7,833) 0
---------- ---------- ---------- --------- ----------
Total dividends to
shareholders from net
investment income (14,799) (23,031) (7,897) (19,551) (22,778)
---------- ---------- ---------- --------- ----------
Distributions to shareholders from net realized gains:
Adviser Shares 0 0 (6,017) (23,803) (2,278)
Institutional Shares (29,598) (23,031) (1,909) (2,036) 0
---------- ---------- ---------- --------- ----------
Total distributions from net
realized gains (29,598) (23,031) (7,926) (25,839) (2,278)
---------- ---------- ---------- --------- ----------
Transactions in Shares of
Beneficial Interest:
Received on issuance:
Shares sold........................................... 1,720,086 1,801,897 1,256,481 3,739,365 4,786,563
Shares issued in reinvestment
of dividends and distributions 44,396 46,062 15,823 45,391 25,055
Shares redeemed....................................... (400,060) (84,706) (42,787) (171,636) (125,012)
---------- ---------- ---------- --------- ----------
Net Increase from
Capital Share Transactions.......................... 1,364,422 1,763,253 1,229,517 3,613,120 4,686,606
---------- ---------- ---------- --------- ----------
Total Increase
in Net Assets......................................... 1,471,132 1,967,391 1,259,891 3,681,185 4,762,670
Net Assets:
Beginning of period..................................... 100,000 0 0 0 0
---------- ---------- ---------- --------- ----------
End of period+.......................................... $1,571,132 $1,967,391 $1,259,891 $3,681,185 $4,762,670
========== ========== ========== ========== ==========
+ Includes undistributed/
(overdistributed) net
investment income................................... ($1,618) $1,401 ($2,127) ($1,936) ($1,788)
========== ========== ========== ========== ==========
<FN>
* Commencement of operations February 6, 1996.
** Commencement of operations March 7, 1996.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Notes to Financial Statements
1. General
The Tomorrow Long-Term Retirement Fund ("Long-Term Fund"), Tomorrow Medium-
Term Retirement Fund ("Medium-Term Fund"), Tomorrow Short-Term Retirement Fund
("Short-Term Fund"), Core Large-Cap Fund (Large-Cap Fund") and Core Small-Cap
Fund ("Small -Cap Fund") are separate funds (collectively the "Funds") of the
Tomorrow Funds Retirement Trust (the "Trust"). The Trust is a Delaware business
trust registered under the Investment Company Act of 1940, as amended (the
"Act"), as an open-end investment company. All of the funds are diversified.
The Trust offers two classes of shares: Adviser Class Shares and Institutional
Class Shares. Adviser Shares and Institutional Shares are substantially the same
except that Adviser Shares bear the fees payable under a plan adopted by the
Trust's Board of Trustees pursuant to Rule 12b-1 under the Act (the
"Distribution Plan") at an annual rate of up to 0.50% of the average daily net
assets attributable to the Adviser Shares; Institutional Shares bear the fees
that are payable under a Service Plan (the "Service Plan") at an annual rate of
up to 0.25% of the average daily net assets attributable to the Institutional
Shares. In addition to fees paid pursuant to the Distribution Plan and Service
Plan, each class also bears the expense associated with transfer agent fees.
Investment income, expenses (other than expenses incurred under the
Distribution Plan, the Service Plan and transfer agent fees and expenses), and
realized and unrealized gains and losses on investments of a Fund are allocated
to the separate classes of shares based upon their relative net asset value on
the date income is earned or expenses and realized and unrealized gains and
losses are incurred.
The Long-Term Fund, Medium-Term Fund and Short-Term Fund first
commenced offering Adviser Shares on March 7, 1996 and Institutional Shares on
April 2, 1996. The Large-Cap Fund and Small-Cap Fund first commenced offering
Institutional shares on February 6, 1996. There are currently no shares
outstanding for the Adviser Class of the Large-Cap Fund and Small-Cap Fund.
2. Significant Accounting Policies
Portfolio Valuation
Common Stock - Securities listed or admitted to trading on a national
securities exchange, including options, are valued at the last sale price on
such exchange as of the close of regular trading on the New York Stock Exchange
("NYSE") on each day that the Funds calculate their net asset values.
Unlisted securities and listed securities for which there are no sales reported
on the valuation date are valued at the mean between the most recent bid and
ask prices.
Bonds - Bonds and other fixed income securities (other than short-term
obligations but including listed issues) in the Funds' portfolios are valued by
a pricing service which utilizes both dealer-supplied valuations and electronic
data processing techniques which take into account appropriate factors such as
institutional-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data, without exclusive reliance upon quoted prices, exchange or
over-the-counter prices, when such valuations are believed to reflect the market
value of such securities.
Money Market Securities - Investments in money market and other short-term
(60 days or less) securities are valued at amortized cost, which has been
determined by the Trust's Board of Trustees to represent the fair market value
of such securities.
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Notes to Financial Statements - (continued)
Foreign Securities - Securities listed or admitted to trading
on an international securities exchange, including options, are valued
at the last sale price, at the close of the primary international exchange
on the day that the Fund's calculate their net asset values. Unlisted foreign
securities and listed foreign securities for which there are no sales reported
on the valuation date are valued at the mean between the most recent bid and
asked prices.
Certain risks result from investing in foreign securities in addition to
the usual risk inherent in domestic investments. Such risks include
future political, economical and currency exchange developments
including restrictions and changes in foreign law.
Security Transactions and Investment Income
Security transactions are recorded on a trade date basis. Realized gains and
losses from security transactions are recorded utilizing the identification
method. Interest income is recognized on an accrual basis and dividend income is
recognized on ex-dividend date. Discounts on fixed income securities are
accreted to interest income over the life of the security or until an applicable
call date if sooner, with a corresponding increase in cost basis.
During the period from inception through December 31, 1996, none of the
Funds in the Trust entered into the following transactions: futures, options,
forward currency contracts or foreign currency transactions.
Federal Income Taxes
Each Fund's policy is to comply with the requirements of the Internal Revenue
Code that are applicable to regulated investment companies and to distribute all
of its taxable income to its shareholders. Accordingly, no federal tax or excise
tax provisions are required. The federal income tax basis of investments
approximates cost.
Distributions to Shareholders
Dividends from Net Investment Income - Dividends from net investment income
are declared and paid annually when available for each Fund and are recorded on
ex-dividend date.
Distributions from Capital Gains - Distributions from capital
gains are declared by December 31 of the year in which they are earned and are
paid by January 31 of the following year. However, to the extent that the net
realized gains of a Fund can be offset by capital loss carryovers of that Fund,
such gains will not be distributed.
The amounts of dividends from net investment income and distributions from
net realized gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the composition of net assets based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions to shareholders which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or net
distributions in excess of net realized gains. To the extent they exceed net
investment income and net realized gains for tax purposes, they are reported as
distributions of capital.
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Notes to Financial Statements - (continued)
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 actual
results to differ from these amounts.
3. Organizational Expenses
Weiss, Peck & Greer. L.L.C. ("WPG"), the Funds' investment Adviser, paid the
organizational expenses of the Funds in the amount of approximately $243,000
($51,000 each for the Large-Cap and Small-Cap Funds and $47,000 each for the
Long-Term, Medium-Term and Short-Term Funds). The Funds will reimburse WPG for
these expenses which have been deferred and are being amortized by the Funds on
a straight line method over a period of five years from the commencement of
operations.
4. Expenses
The Trust accounts separately for the assets, liabilities and operations of
each Fund. Direct expenses of a Fund are charged to that Fund while general
Trust expenses are allocated among the Trust's respective Funds.
5. Investment Advisory Fee and Other Transactions with Affiliates
The Trust, with respect to each Fund, has entered into an Investment Advisory
Agreement with WPG which entitles WPG to receive a fee, which is accrued daily
and paid monthly, at an annual rate of 0.75% of each Fund's average daily net
assets. WPG voluntarily agreed not to impose its advisory fee applicable to the
Funds for the period ended December 31, 1996.
WPG has agreed to voluntarily limit each Fund's total operating
expenses, (excluding taxes, brokerage commissions, interest, dividends paid on
securities sold short and extraordinary legal fees and expenses) to 1.75% of
the average daily net assets for the Adviser Class Shares and 1.50% of the
average daily net assets for the Institutional class shares. WPG will reduce
its advisory fee (but not below $0) when the total operating expenses exceed
these limits.
The Trust has entered into an Administration Agreement with WPG. For its
administrative services, WPG is entitled to receive a fee, which is accrued
daily and paid monthly, at an annual rate of 0.09% of each Fund's average
daily net assets. WPG voluntarily agreed not to impose its administration
services fee applicable to the funds for the period ended December 31, 1996.
The Trust with respect to the Adviser Class of each Fund has adopted a
Distribution Plan pursuant to Rule 12b-1 under the Act. Under the Distribution
Plan, each Fund pays distribution and service fees at an aggregate annual rate
of up to 0.50% of the daily average net assets attributable to the Adviser
Class Shares. Up to 0.25% of this fee is for service fees and is intended to be
compensation for personnel services and/or account maintenance services. The
remaining amount is for distribution fees and is intended to compensate WPG for
its services and expenses associated with serving as principal underwriter of
the Adviser Class. These payments are borne solely by the Adviser Class Shares.
For the period April 2, 1996 through December 31,
1996 payments pursuant to the Distribution Plan from the Long-Term Fund,
Medium-Term Fund and Short-Term Fund amounted to $1,320, $4,325 and $4,574,
respectively. Of these amounts, WPG earned $670, $2,203 and $2,307,
respectively.
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Notes to Financial Statements - (continued)
The Trust with respect to the Institutional Class of each Fund has
also adopted a Service Plan (the "Institutional Service Plan") pursuant to which
each Fund has agreed to pay fiduciaries of retirement plans investing in the
Funds a fee for various services and/or account maintenance services relating to
the Institutional Class Shares. The Institutional Service Plan fee is accrued
daily and paid quarterly at an annual rate of up to 0.25% of the average daily
net asset value attributable to the Institutional Class Shares of each Fund, and
is borne solely by the Institutional Class Shares. For the period through
December 31, 1996 payments made pursuant to the Institutional Service Plan from
the Long-Term Fund, Medium-Term Fund and Short-Term Fund amounted to $184, $338
and $209, respectively. No such payments were made for the Large-Cap Fund and
Small-Cap Fund.
6. Securities Transactions
Sale proceeds, cost of securities purchased, (excluding short term
investments), total commissions and commissions received by WPG on such
transactions were as follows:
<TABLE>
<S> <C> <C> <C> <C>
Proceeds Cost of Commissions
of Securities Securities Total Received
Sold Purchased Commissions by WPG
Large-Cap* $427,821 $1,854,942 $1,651 $1,645
Small-Cap* 154,436 1,837,244 2,387 2,387
Long-Term** 115,061 1,388,034 846 821
Medium-Term** 296,128 3,810,468 2,094 2,070
Short-Term** 200,718 4,874,544 2,056 2,004
<FN>
* For the period February 6, 1996 (commencement of operations ) through December 31, 1996.
** For the period March 7, 1996 (commencement of operations) through December 31, 1996.
</FN>
</TABLE>
7. Custodian Fees
Each Fund has entered into an expense offset arrangement with its custodian
wherein it receives credit toward the reduction of custodian fees whenever there
are uninvested cash balances. The Funds' custodian fee and related offset were
as follows:
<TABLE>
<S> <C> <C>
Custodian Fee Offset Credit
Large-Cap* $11,028 $1,941
Small-Cap* 13,201 468
Long-Term** 8,958 658
Medium-Term** 10,132 1,269
Short-Term** 6,187 1,390
The Funds could have invested its cash balances elsewhere if it had not agreed
to a reduction in fees under the expense offset agreement with its custodian.
<FN>
* For the period February 6, 1996 (commencement of operations) through December
31, 1996.
** For the period March 7, 1996 (commencement of operations) through
December 31, 1996.
</FN>
</TABLE>
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Notes to Financial Statements - (continued)
8. Capital Share Transactions
Transactions in shares of the Funds were as follows:
<TABLE>
<S> <C> <C>
Core Large-Cap
Shares Amount
Institutional Class Shares*
Sold 161,419 $1,720,086
Reinvested from dividends
and distributions 3,905 44,396
Redeemed (35,201) (400,060)
Net increase 130,123 $1,364,422
<FN>
* For the period February 6, 1996 (commencement of operations) through December
31, 1996.
</FN>
</TABLE>
<TABLE>
<S> <C> <C>
Core Small-Cap
Shares Amount
Institutional Class Shares*
Sold 268,942 $1,801,897
Reinvested from dividends
and distributions 6,191 46,062
Redeemed (11,672) (84,706)
Net increase 263,461 $1,763,253
<FN>
* For the period February 6, 1996 (commencement of operations) through December
31, 1996.
</FN>
</TABLE>
<TABLE>
<S> <C> <C>
Long-Term Retirement
Shares Amount
Adviser Class Shares*
Sold 143,309 $977,964
Reinvested from dividends
and distributions 1,985 13,914
Redeemed (5,250) (35,184)
Net increase - Adviser Class 140,044 956,694
Institutional Class Shares**
Shares Amount
Sold 40,904 278,517
Reinvested from dividends
and distributions 270 1,909
Redeemed (1,160) (7,603)
Net increase - Institutional Class 40,014 272,823
Net increase in Fund 180,058 $1,229,517
<FN>
* For the period March 7, 1996 (commencement of operations) through December
31, 1996.
** For the period April 2, 1996 (commencement of operations) through December
31, 1996.
</FN>
</TABLE>
<PAGE>
TOMORROW FUNDS RETIREMENT TRUST
Notes to Financial Statements - (continued)
<TABLE>
<S> <C> <C>
Medium-Term Retirement
Shares Amount
Adviser Class Shares*
Sold 434,251 $3,434,858
Reinvested from dividends
and distributions 4,374 35,521
Redeemed (15,238) (118,433)
Net increase - Adviser Class 423,387 3,351,946
Institutional Class Shares**
Sold 39,564 304,507
Reinvested from dividends
and distributions 1,248 9,870
Redeemed (7,079) (53,203)
Net increase - Institutional Class 33,733 261,174
Net increase in Fund 457,120 $3,613,120
<FN>
* For the period March 7, 1996 (commencement of operations) through
December 31, 1996.
** For the period April 2, 1996 (commencement of operations) through
December 31, 1996.
</FN>
</TABLE>
<TABLE>
<S> <C> <C>
Short-Term Retirement
Shares Amount
Adviser Class Shares*
Sold 498,279 $4,497,333
Reinvested from dividends
and distributions 2,714 25,055
Redeemed (14,392) (123,915)
Net increase - Adviser Class 486,601 4,398,473
Institutional Class Shares**
Sold 33,138 289,230
Redeemed (122) 1,097)
Net increase - Institutional Class 33,016 288,133
Net increase in Fund 519,617 $4,686,606
<FN>
* For the period March 7, 1996 (commencement of operations) through
December 31, 1996.
** For the period April 2, 1996 (commencement of operations) through
December 31, 1996.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOMORROW FUNDS RETIREMENT TRUST
FINANCIAL HIGHLIGHTS
$ per share
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Net Total Dividends Distri- Net
Asset Realized Income From butions Asset
Value at Net and From Net from Total Value at
Beginning Investment Unrealized Investment Investment Capital Distri- End of
of Period Income Gains Operations Income Gains butions Period
Large-Cap - Institutional Shares
For the period February 6, 1996*
through December 31, 1996 10.00 0.10 1.24 1.34 (0.11) (0.02) (0.13) $11.21
Small-Cap - Institutional Shares
For the period February 6, 1996*
through December 31, 1996 6.50 0.10 1.05 1.15 (0.09) (0.09) (0.18) 7.47
Long-Term Retirement
Adviser Shares
For the period March 7, 1996*
through December 31, 1996 6.50 0.04 0.55 0.59 (0.06) (0.05) (0.11) 6.98
Institutional Shares
For the period April 2, 1996*
through December 31, 1996 6.51 0.04 0.55 0.59 0.00 (0.05) (0.05) 7.05
Medium-Term Retirement
Adviser Shares
For the period March 7, 1996*
through December 31, 1996 7.50 0.04 0.63 0.67 (0.03) (0.07) (0.10) 8.07
Institutional Shares
For the period April 2, 1996*
through December 31, 1996 7.53 0.10 0.55 0.65 (0.25) (0.07) (0.32) 7.86
Short-Term Retirement
Adviser Shares
For the period March 7, 1996*
through December 31, 1996 8.50 0.06 0.72 0.78 (0.06) (0.06) (0.12) 9.16
Institutional Shares
For the period March 7, 1996*
through December 31, 1996 8.51 0.00 0.70 0.70 0.00 0.00 0.00 9.21
</TABLE>
<TABLE>
ratios
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Ratio information
assuming no fee waivers,
reimbursements or
Ratio of custody fee
Ratio of Net earnings credit receive
Expenses Income to Ratio of Ratio of
Net To Average Average Portfolio Average Expenses Net Income
Total Assets Net Net Turnover Commissions To Average To Average
Return++ (000's) Assets+ Assets+ Rate Per Share Net Assets+ Net Assets+
Large-Cap - Institutional Shares
For the period February 6, 1996*
through December 31, 1996 15.35% $1,571 1.25% 1.67% 48.62% $0.035 18.89% -15.97%
Small-Cap - Institutional Shares
For the period February 6, 1996*
through December 31, 1996
Long-Term Retirement
Adviser Shares
For the period March 7, 1996*
through December 31, 1996 9.08% 978 1.75% 1.63% 25.09% 0.035 45.36% -41.98%
Institutional Shares
For the period April 2, 1996*
through December 31, 1996 9.03% 282 1.50% 1.97% 25.09% 0.035 40.49% -37.02%
Medium-Term Retirement
Adviser Shares
For the period March 7, 1996*
through December 31, 1996 8.89% 3,416 1.75% 1.73% 22.56% 0.035 15.88% -12.40%
Institutional Shares
For the period April 2, 1996*
through December 31, 1996 8.54% 265 1.50% 1.96% 22.56% 0.035 20.86% -17.40%
Short-Term Retirement
Adviser Shares
For the period March 7, 1996*
through December 31, 1996 8.54% 4,459 1.75% 2.08% 14.16% 0.035 15.68% -11.85%
Institutional Shares
For the period March 7, 1996*
through December 31, 1996 8.23% 304 1.50% 2.31% 14.16% 0.035 19.10% -15.29%
<FN>
+ Annualized.
++ Not annualized.
* Commencement of operations.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
Independent Auditors' Report
To the Shareholders and Board of Trustees of:
Core Large-Cap Stock Fund
Core Small-Cap Stock Fund
Tomorrow Long-Term Retirement Fund
Tomorrow Medium-Term Retirement Fund
Tomorrow Short-Term Retirement Fund
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments of Core Large-Cap Stock Fund, Core Small-Cap Stock
Fund, Tomorrow Long-Term Retirement Fund, Tomorrow Medium-Term Retirement Fund
and Tomorrow Short-Term Retirement Fund as of December 31, 1996, and the related
statements of operations, changes in net assets and financial highlights for the
period February 6, 1996 (commencement of operations) to December 31, 1996 for
the Core Large-Cap Stock Fund and Core Small-Cap Stock Fund and for the period
March 7, 1996 (commencement of operations) to December 31, 1996 for the Tomorrow
Long-Term Retirement Fund, Tomorrow Medium-Term Retirement Fund and Tomorrow
Short-Term Retirement Fund. These financial statements and financial highlights
are the responsibility of the Funds' management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1996, by correspondence with the custodian and other appropriate
audit procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Core
Large-Cap Stock Fund, Core Small-Cap Stock Fund, Tomorrow Long-Term Retirement
Fund, Tomorrow Medium-Term Retirement Fund and Tomorrow Short-Term Retirement
Fund as of December 31, 1996, the results of their operations, changes in net
assets and financial highlights for the period February 6, 1996 (commencement of
operations) to December 31, 1996 for the Core Large-Cap Stock Fund and Core
Small-Cap Stock Fund and for the period March 7, 1996 (commencement of
operations) to December 31, 1996 for the Tomorrow Long-Term Retirement Fund,
Tomorrow Medium-Term Retirement Fund and Tomorrow Short-Term Retirement Fund, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
New York, New York
January 15, 1997
<PAGE>
Tomorrow Funds
RETIREMENT TRUST
A Lifecycle Retirement Program
One New York Plaza, New York, NY 1004
(800) 223-3332
INDEPENDENT TRUSTEES AND MEMBERS INVESTMENT ADVISER
OF AUDIT COMMITTEE Weiss, Peck & Greer, L.L.C.
Raymond R. Herrmann, Jr. One New York Plaza
Lawrence J. Israel New York, NY 10004
CUSTODIAN
OFFICERS Boston Safe Deposit and Trust Company
Roger J. Weiss One Exchange Place
Chairman of the Board, President Boston, MA 02109
and Trustee
Jay C. Nadel DIVIDEND DISBURSING AND
Executive Vice President TRANSFER AGENT
and Treasurer First Data Investor Services Group, Inc.
440 Computer Drive
Francis H. Powers Westboro, MA 01581-5120
Executive Vice President
and Treasurer
LEGAL COUNSEL
Daniel Cardell Hale and Dorr
Vice President 60 State Street
Boston, MA 02109
Stephen Gresham
Vice President INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
Arlen S. Oransky 345 Park Avenue
Vice President New York, NY 10154
Joseph J. Reardon
Vice President
Daniel S. Vandivort
Vice President
Joseph Parascondola
Assistant Vice President
This report is submitted for general information of shareholders and is not
authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus. Nothing herein is to be considered
an offer of sale or solicitation of an offer to buy shares of the Tomorrow
Funds Retirement Trust. Such offering is made only by prospectus, which
includes details as to offering and other material information.
