UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05775
WM Trust II
(Exact name of registrant as specified in charter)
1201 Third Avenue, 22nd Floor, Seattle, WA
98101 (Address of principal executive offices)
(Zip code)
John T. West
1201 Third Avenue, 22nd Floor, Seattle, WA 98101
(Name and address of agent for service)
Registrant's telephone number, including area code: (206) 461-3800
Date of fiscal year end: October 31st
Date of reporting period: April 30, 2003
LOGO: WM
GROUPOFFUNDS
WM GROUP
OF FUNDS
Common sense. Uncommon solutions.
1st Photo: House on a hill, overlooking a mountain top.
2nd Photo: Night photo of city and bridge.
SEMI-ANNUAL REPORT
for the period ended
April 30, 2003
EQUITY FUNDS
REIT Fund
Equity Income Fund
Growth & Income Fund
West Coast Equity Fund
Mid Cap Stock Fund
Growth Fund
Small Cap Stock Fund
International Growth Fund
FIXED-INCOME FUNDS
Short Term Income Fund
U.S. Government Securities Fund
Income Fund
High Yield Fund
MUNICIPAL FUNDS
Tax-Exempt Bond Fund
California Municipal Fund
California Insured
Intermediate Municipal Fund
NOT FDIC INSURED
o May Lose Value
o No Bank Guarantee
Table of Contents
Message from the President ................................................ 1
Statements of Assets and Liabilities ...................................... 2
Statements of Operations .................................................. 6
Statements of Changes in Net Assets ....................................... 8
Statements of Changes in Net
Assets - Capital Stock Activity ........................................... 12
Financial Highlights ...................................................... 16
Portfolio of Investments .................................................. 33
Notes to Financial Statements (unaudited) ................................. 82
Photo of: William G. Papesh
Dear Shareholder,
The first half of our fiscal year closed with a set of decisive geopolitical
events and late-period equity market gains.1 The military conflict in Iraq
commenced in March and concluded shortly after period-end, brevity that we hope
will inspire a tempering of global tensions. We also saw encouraging signs of
improvement in economic and market conditions. Equity markets rallied to
conclude the six-month period ended April 30, 2003 as the Standard & Poor's 500
Index gained 4.47%.2 Corporate earnings also showed some signs of change for the
better, but true revenue-driven profit growth remains somewhat elusive and
difficult to garner for many firms. With these conditions in mind, we feel that
time is still needed before we can declare a full economic recovery.
Corporate bonds, particularly lower-rated issues, were among the strongest
performing major asset classes during the period. Interest rates continued their
slide to 40-year lows, while Treasury yields actually dropped slightly during
the period. These factors helped to boost the performance of bond investments,
where prices generally move in the opposite direction of yields. In fact, bonds
have outperformed stocks in each of the past three calendar years, averaging
more than 10% per year from 2000 to 2002. Conversely, stocks declined by an
average of more than 14% per year over the same time period.3
As a result of positive bond market performance, bond fund investments continued
to gain in popularity compared to equity funds during the period, as measured by
cash inflows. However, investors should be aware of the pitfalls associated with
chasing short-term past performance. Assets that have shown the best results in
a certain period may not necessarily repeat this strong performance in the next.
For this reason, we have always recommended a strategy that utilizes
diversification and asset allocation to help protect investor assets through a
variety of financial market conditions. We also suggest that investors regularly
elicit the expertise of a financial advisor. With the guidance of these
investment professionals, investors can take the actions necessary to keep their
investment portfolios aligned with their goals regardless of market
fluctuations.
To provide additional opportunities for diversification, we introduced the WM
REIT Fund in March. The Fund invests primarily in real estate investment trust
(REIT) securities and seeks to take advantage of their dividend-producing
potential. We believe that the WM REIT Fund adds depth and breadth to the
overall WM Group of Funds family and that it has the capability of enhancing
risk management opportunities available through the WM Strategic Asset
Management Portfolios.
At the WM Group of Funds, our focus on risk management has remained in place
throughout the past three years of significantly volatile equity market
performance. It is a fundamental aspect of our investment philosophy, and we
will continue to stress this approach as economic conditions and equity markets
change. Our firm and our investment products have evolved over the years, and
yet our commitment to a risk management discipline remains at the core of the
investment options we offer.
As we look toward the second half of our fiscal year, we are unwavering in our
belief that the strict investment discipline that has guided us for more than 60
years is the right course through the current market uncertainty. We thank you
for your continued confidence and trust in the WM Group of Funds.
Sincerely,
/s/ William G. Papesh
William G. Papesh
President
1 As measured by the Standard & Poor's 500 Index.
2 Source: Ibbotson Associates. Index performance information represents total
return from November 1, 2002 through April 30, 2003 and includes the
reinvestment of dividends and capital gains.
3 Source: Ibbotson Associates. Stocks are measured by the S&P 500 Index.
Bonds are measured by the Lehman Brothers Aggregate Bond Index. Index
performance information represents average annual total returns from
January 1, 2000 through December 31, 2002, and includes the reinvestment of
dividends and capital gains.
Note: Indices are unmanaged, and an investment cannot be made directly in an
index.
1
STATEMENTS of ASSETS and LIABILITIES
WM GROUP OF FUNDS
APRIL 30, 2003 (UNAUDITED)
EQUITY GROWTH & WEST COAST MID CAP
REIT INCOME INCOME EQUITY STOCK
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
ASSETS:
Investments, at value:
Securities ...................... $ 108,424,167 $ 630,952,639 $1,165,136,418 $ 685,624,002 $ 269,241,766
Repurchase Agreements ........... 13,633,000 35,923,000 70,766,000 28,772,000 26,084,000
-------------- -------------- -------------- -------------- --------------
Total Investments (a) ........... 122,057,167 666,875,639 1,235,902,418 714,396,002 295,325,766
Cash ............................... 667 850 918 996 601
Cash held as collateral for
securities loaned ............... -- 19,760,170 8,607,800 14,575,389 15,235,700
Unrealized appreciation of forward
foreign currency contracts ....... -- -- -- -- --
Dividends and/or interest receivable 166,624 1,770,146 1,797,388 94,179 282,471
Receivable for Fund shares sold .... 249,675 1,897,425 2,443,890 2,029,225 658,369
Receivable for investment
securities sold ................. -- -- -- 1,092,770 1,248,383
Prepaid expenses ................... 25,365 4,180 8,039 4,255 1,796
-------------- -------------- -------------- -------------- --------------
Total Assets..................... 122,499,498 690,308,410 1,248,760,453 732,192,816 312,753,086
-------------- -------------- -------------- -------------- --------------
LIABILITIES:
Payable upon return of securities
loaned .......................... -- 19,760,170 8,607,800 14,575,389 15,235,700
Unrealized depreciation of forward
foreign currency contracts ...... -- -- -- -- --
Payable for Fund shares redeemed ... -- 397,949 738,914 885,449 20,838
Payable for when-issued securities . -- -- -- -- --
Payable for investment securities
purchased ....................... -- -- -- 2,161,342 3,892,422
Investment advisory fee payable .... 78,517 289,294 513,719 335,138 174,153
Shareholder servicing and
distribution fees payable ....... 520 111,387 187,451 159,713 17,123
Transfer agent fees payable ........ 175 45,847 96,165 79,395 10,636
Variation margin ................... -- -- -- -- --
Dividends payable .................. -- -- -- -- --
Accrued legal and audit fees ....... 7,862 23,808 30,612 23,471 19,901
Accrued printing and
postage expenses ................ 5,091 108,625 231,121 195,594 30,098
Accrued expenses and
other payables .................. 6,056 25,326 67,147 66,142 9,419
-------------- -------------- -------------- -------------- --------------
Total Liabilities ............... 98,221 20,762,406 10,472,929 18,481,633 19,410,290
-------------- -------------- -------------- -------------- --------------
NET ASSETS ......................... $ 122,401,277 $ 669,546,004 $1,238,287,524 $ 713,711,183 $ 293,342,796
============== ============== ============== ============== ==============
(a) Investments, at cost ........... $ 117,677,650 $ 699,680,252 $1,184,104,927 $ 692,660,727 $ 258,193,376
============== ============== ============== ============== ==============
U.S.
SMALL CAP INTERNATIONAL SHORT TERM GOVERNMENT
GROWTH STOCK GROWTH INCOME SECURITIES
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
ASSETS:
Investments, at value:
Securities ...................... $ 632,411,061 $ 241,798,094 $ 218,225,704 $ 173,495,177 $ 917,555,763
Repurchase Agreements ........... 48,483,000 3,549,000 12,040,000 18,736,000 87,153,000
-------------- -------------- -------------- -------------- --------------
Total Investments (a) ........... 680,894,061 245,347,094 230,265,704 192,231,177 1,004,708,763
Cash ............................... 75,326 839 873 1,426 592
Cash held as collateral for
securities loaned ............... 27,318,741 12,313,883 28,528,780 28,453,431 149,724,191
Unrealized appreciation of forward
foreign currency contracts ....... 22,152 -- 672,798 -- --
Dividends and/or interest receivable 229,467 30,934 1,102,161 2,254,193 5,610,260
Receivable for Fund shares sold .... 986,817 541,962 402,770 3,583,248 6,236,330
Receivable for investment
securities sold ................. 5,260,906 747,634 52,682 361 423
Prepaid expenses ................... 39,671 1,082 1,277 1,069 5,302
-------------- -------------- -------------- -------------- --------------
Total Assets .................... 714,827,141 258,983,428 261,027,045 226,524,905 1,166,285,861
-------------- -------------- -------------- -------------- --------------
LIABILITIES:
Payable upon return of securities
loaned .......................... 27,318,741 12,313,883 28,528,780 28,453,431 149,724,191
Unrealized depreciation of forward
foreign currency contracts ....... 108,624 -- 398,353 --
Payable for Fund shares redeemed ... 378,703 102,758 604,854 214,138 1,737,929
Payable for when-issued securities . -- -- -- -- --
Payable for investment securities
purchased ....................... 6,715,800 991,207 989,917 4,626,209 --
Investment advisory fee payable .... 422,803 158,548 386,515 76,358 408,703
Shareholder servicing and
distribution fees payable ....... 115,450 19,248 7,354 47,670 328,269
Transfer agent fees payable ........ 122,941 33,831 11,575 -- 44,798
Variation margin ................... -- -- -- 46,875 --
Dividends payable .................. -- -- -- 48,284 396,820
Accrued legal and audit fees ....... 23,100 18,540 19,265 17,644 26,327
Accrued printing and
postage expenses ................ 259,011 80,855 32,092 20,941 91,089
Accrued expenses and
other payables .................. 36,433 14,138 41,134 8,367 33,574
-------------- -------------- -------------- -------------- --------------
Total Liabilities ............... 35,501,606 13,733,008 31,019,839 33,559,917 152,791,700
-------------- -------------- -------------- -------------- --------------
NET ASSETS ......................... $ 679,325,535 $ 245,250,420 $ 230,007,206 $ 192,964,988 $1,013,494,161
============== ============== ============== ============== ==============
(a) Investments, at cost ........... $ 706,169,834 $ 403,472,931 $ 258,036,811 $ 185,353,357 $ 974,276,900
============== ============== ============== ============== ==============
CALIFORNIA
INSURED
HIGH TAX-EXEMPT CALIFORNIA INTERMEDIATE
INCOME YIELD BOND MUNICIPAL MUNICIPAL
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
ASSETS:
Investments, at value:
Securities ...................... $ 873,627,274 $ 410,897,346 $ 274,543,980 $ 601,823,077 $ 213,240,416
Repurchase Agreements ........... 67,224,000 8,960,000 -- -- --
-------------- -------------- -------------- -------------- --------------
Total Investments (a) ........... 940,851,274 419,857,346 274,543,980 601,823,077 213,240,416
Cash ............................... 1,936,649 340 4,721 28,483 63,933
Cash held as collateral for
securities loaned ............... 156,419,236 100,700,337 -- -- --
Unrealized appreciation of forward
foreign currency contracts ....... -- -- -- -- --
Dividends and/or interest receivable 12,118,472 8,049,554 3,548,353 7,711,816 2,302,885
Receivable for Fund shares sold .... 6,021,648 3,515,513 544,981 2,192,728 1,122,156
Receivable for investment
securities sold ................. -- -- 1,884,554 10,758,840 --
Prepaid expenses ................... 4,921 2,041 1,741 3,869 955
-------------- -------------- -------------- -------------- --------------
Total Assets .................... 1,117,352,200 532,125,131 280,528,330 622,518,813 216,730,345
-------------- -------------- -------------- -------------- --------------
LIABILITIES:
Payable upon return of securities
loaned .......................... 156,419,236 100,700,337 -- -- --
Unrealized depreciation of forward
foreign currency contracts ...... -- -- -- -- --
Payable for Fund shares redeemed ... 994,972 346,141 445,263 1,119,775 350,812
Payable for when-issued securities . -- -- 6,398,715 2,694,937 9,202,802
Payable for investment securities
purchased ....................... 5,291,139 2,350,337 1,466,310 21,929,930 4,512,686
Investment advisory fee payable .... 377,794 192,122 108,846 242,561 64,592
Shareholder servicing and
distribution fees payable ....... 201,643 65,551 87,558 313,592 111,843
Transfer agent fees payable ........ 30,036 3,653 12,318 20,806 5,536
Variation margin ................... -- -- 72,406 464,656 127,656
Dividends payable .................. 579,238 346,356 281,088 603,240 107,771
Accrued legal and audit fees ....... 25,581 20,718 18,503 22,209 17,308
Accrued printing and
postage expenses ................ 55,407 19,678 28,559 52,203 13,272
Accrued expenses and
other payables .................. 25,409 8,426 6,478 20,754 6,820
-------------- -------------- -------------- -------------- --------------
Total Liabilities ............... 164,000,455 104,053,319 8,926,044 27,484,663 14,521,098
-------------- -------------- -------------- -------------- --------------
NET ASSETS ......................... $ 953,351,745 $ 428,071,812 $ 271,602,286 $ 595,034,150 $ 202,209,247
============== ============== ============== ============== ==============
(a) Investments, at cost ........... $ 899,840,052 $ 411,072,982 $ 250,373,179 $ 570,455,641 $ 205,493,499
============== ============== ============== ============== ==============
See Notes to Financial Statements.
2-3 spread
STATEMENTS of ASSETS and LIABILITIEs (continued)
WM GROUP OF FUNDS
APRIL 30, 2003 (UNAUDITED)
EQUITY GROWTH & WEST COAST
REIT INCOME INCOME EQUITY
FUND FUND FUND FUND
--------------- --------------- --------------- ---------------
NET ASSETS CONSIST OF:
Undistributed net investment income/
(accumulated net investment loss) .. $ 794,118 $ 2,256,221 $ 5,181,912 $ 896,586
Accumulated net realized gain/(loss)
on investment transactions ......... 63,298 (771,362) (81,806,235) (13,678,284)
Net unrealized appreciation/
(depreciation) of
investments ....................... 4,379,517 (32,804,613) 51,797,491 21,735,275
Paid-in capital ....................... 117,164,344 700,865,758 1,263,114,356 704,757,606
--------------- --------------- --------------- ---------------
Total Net Assets ................... $ 122,401,277 $ 669,546,004 $ 1,238,287,524 $ 713,711,183
=============== =============== =============== ===============
NET ASSETS:
Class A Shares ........................ $ 606,287 $ 217,118,287 $ 487,302,750 $ 395,241,143
=============== =============== =============== ===============
Class B Shares ........................ $ 609,089 $ 84,197,720 $ 112,281,775 $ 98,473,691
=============== =============== =============== ===============
Class C Shares ........................ $ 152,306 $ 2,128,492 $ 301,739 $ 1,647,423
=============== =============== =============== ===============
Class I Shares ........................ $ 121,033,595 $ 366,101,505 $ 638,401,260 $ 218,348,926
=============== =============== =============== ===============
SHARES OUTSTANDING:
Class A Shares ........................ 57,980 16,169,909 25,483,320 15,958,261
=============== =============== =============== ===============
Class B Shares ........................ 58,286 6,310,053 6,082,619 4,363,698
=============== =============== =============== ===============
Class C Shares ........................ 14,570 160,039 16,437 72,907
=============== =============== =============== ===============
Class I Shares ........................ 11,569,500 27,275,041 33,297,725 8,762,641
=============== =============== =============== ===============
CLASS A SHARES:
Net asset value per share of
beneficial interest
outstanding * ...................... $ 10.46 $ 13.43 $ 19.12 $ 24.77
=============== =============== =============== ===============
Maximum sales charge .................. 5.50% 5.50% 5.50% 5.50%
=============== =============== =============== ===============
Maximum offering price
per share of beneficial
interest outstanding ............... $ 11.07 $ 14.21 $ 20.23 $ 26.21
=============== =============== =============== ===============
CLASS B SHARES:
Net asset value and offering
price per share of
beneficial interest
outstanding * ...................... $ 10.45 $ 13.34 $ 18.46 $ 22.57
=============== =============== =============== ===============
CLASS C SHARES:
Net asset value per share
of beneficial interest
outstanding * ...................... $ 10.45 $ 13.30 $ 18.36 $ 22.60
=============== =============== =============== ===============
Maximum sales charge .................. 1.00% 1.00% 1.00% 1.00%
=============== =============== =============== ===============
Maximum offering price
per share of beneficial
interest outstanding ............... $ 10.56 $ 13.43 $ 18.55 $ 22.83
=============== =============== =============== ===============
CLASS I SHARES:
Net asset value, offering
and redemption price per
share of beneficial
interest outstanding ............... $ 10.46 $ 13.42 $ 19.17 $ 24.92
=============== =============== =============== ===============
MID CAP SMALL CAP INTERNATIONAL
STOCK GROWTH STOCK GROWTH
FUND FUND FUND FUND
--------------- --------------- --------------- ---------------
NET ASSETS CONSIST OF:
Undistributed net investment income/
(accumulated net investment loss) .. $ 376,799 $ (1,087,316) $ (264,079) $ 603,253
Accumulated net realized gain/(loss)
on investment transactions ......... (8,209,086) (436,507,741) (40,799,115) (35,226,176)
Net unrealized appreciation/
(depreciation) of
investments ....................... 37,132,390 (25,362,245) (158,125,837) (27,483,936)
Paid-in capital ....................... 264,042,693 1,142,282,837 444,439,451 292,114,065
--------------- --------------- --------------- ---------------
Total Net Assets ................... $ 293,342,796 $ 679,325,535 $ 245,250,420 $ 230,007,206
=============== =============== =============== ===============
NET ASSETS:
Class A Shares ........................ $ 30,190,399 $ 96,871,776 $ 49,254,213 $ 21,775,428
=============== =============== =============== ===============
Class B Shares ........................ $ 13,837,841 $ 118,931,543 $ 12,256,985 $ 3,719,689
=============== =============== =============== ===============
Class C Shares ........................ $ 188,342 $ 349,444 $ 88,254 $ 59,084
=============== =============== =============== ===============
Class I Shares ........................ $ 249,126,214 $ 463,172,772 $ 183,650,968 $ 204,453,005
=============== =============== =============== ===============
SHARES OUTSTANDING:
Class A Shares ........................ 2,339,439 8,175,243 5,636,513 3,232,712
=============== =============== =============== ===============
Class B Shares ........................ 1,104,367 10,966,287 1,565,793 573,077
=============== =============== =============== ===============
Class C Shares ........................ 15,017 32,101 11,198 9,120
=============== =============== =============== ===============
Class I Shares ........................ 19,134,379 38,053,366 20,570,964 30,265,491
=============== =============== =============== ===============
CLASS A SHARES:
Net asset value per share of
beneficial interest
outstanding * ...................... $ 12.90 $ 11.85 $ 8.74 $ 6.74
=============== =============== =============== ===============
Maximum sales charge .................. 5.50% 5.50% 5.50% 5.50%
=============== =============== =============== ===============
Maximum offering price
per share of beneficial
interest outstanding ............... $ 13.65 $ 12.54 $ 9.25 $ 7.13
=============== =============== =============== ===============
CLASS B SHARES:
Net asset value and offering
price per share of
beneficial interest
outstanding * ...................... $ 12.53 $ 10.85 $ 7.83 $ 6.49
=============== =============== =============== ===============
CLASS C SHARES:
Net asset value per share
of beneficial interest
outstanding * ...................... $ 12.54 $ 10.89 $ 7.88 $ 6.48
=============== =============== =============== ===============
Maximum sales charge .................. 1.00% 1.00% 1.00% 1.00%
=============== =============== =============== ===============
Maximum offering price
per share of beneficial
interest outstanding ............... $ 12.67 $ 11.00 $ 7.96 $ 6.55
=============== =============== =============== ===============
CLASS I SHARES:
Net asset value, offering
and redemption price per
share of beneficial
interest outstanding ............... $ 13.02 $ 12.17 $ 8.93 $ 6.76
=============== =============== =============== ===============
U.S.
SHORT TERM GOVERNMENT HIGH
INCOME SECURITIES INCOME YIELD
FUND FUND FUND FUND
--------------- --------------- --------------- ---------------
NET ASSETS CONSIST OF:
Undistributed net investment income/
(accumulated net investment loss) .. $ (195,101) $ (3,577,146) $ (1,295,267) $ (1,084,603)
Accumulated net realized gain/(loss)
on investment transactions ......... (4,580,742) (40,746,058) (17,970,247) (48,810,989)
Net unrealized appreciation/
(depreciation) of
investments ....................... 6,839,539 30,431,863 41,011,222 8,783,802
Paid-in capital ....................... 190,901,292 1,027,385,502 931,606,037 469,183,602
--------------- --------------- --------------- ---------------
Total Net Assets ................... $ 192,964,988 $ 1,013,494,161 $ 953,351,745 $ 428,071,812
=============== =============== =============== ===============
NET ASSETS:
Class A Shares ........................ $ 39,057,705 $ 209,572,149 $ 148,064,764 $ 34,430,313
=============== =============== =============== ===============
Class B Shares ........................ $ 38,312,900 $ 332,800,683 $ 205,144,837 $ 66,919,569
=============== =============== =============== ===============
Class C Shares ........................ $ 12,335,559 $ 19,973,821 $ 14,304,956 $ 11,165,968
=============== =============== =============== ===============
Class I Shares ........................ $ 103,258,824 $ 451,147,508 $ 585,837,188 $ 315,555,962
=============== =============== =============== ===============
SHARES OUTSTANDING:
Class A Shares ........................ 16,235,188 18,798,799 15,678,693 4,620,721
=============== =============== =============== ===============
Class B Shares ........................ 15,920,738 29,872,553 21,656,605 8,940,980
=============== =============== =============== ===============
Class C Shares ........................ 5,127,031 1,793,203 1,510,298 1,491,723
=============== =============== =============== ===============
Class I Shares ........................ 42,919,583 40,457,586 61,909,704 42,422,696
=============== =============== =============== ===============
CLASS A SHARES:
Net asset value per share of
beneficial interest
outstanding * ...................... $ 2.41 $ 11.15 $ 9.44 $ 7.45
=============== =============== =============== ===============
Maximum sales charge .................. 3.50% 4.50% 4.50% 4.50%
=============== =============== =============== ===============
Maximum offering price
per share of beneficial
interest outstanding ............... $ 8.41 $ 11.97 $ 11.73 $ 7.80
=============== =============== =============== ===============
CLASS B SHARES:
Net asset value and offering
price per share of
beneficial interest
outstanding * ...................... $ 2.41 $ 11.14 $ 9.47 $ 7.48
=============== =============== =============== ===============
CLASS C SHARES:
Net asset value per share
of beneficial interest
outstanding * ...................... $ 2.41 $ 11.14 $ 9.47 $ 7.49
=============== =============== =============== ===============
Maximum sales charge .................. 1.00% 1.00% 1.00% 1.00%
=============== =============== =============== ===============
Maximum offering price
per share of beneficial
interest outstanding ............... $ 2.43 $ 11.25 $ 9.57 $ 7.57
=============== =============== =============== ===============
CLASS I SHARES:
Net asset value, offering
and redemption price per
share of beneficial
interest outstanding ............... $ 2.41 $ 11.15 $ 9.46 $ 7.44
=============== =============== =============== ===============
CALIFORNIA
INSURED
TAX-EXEMPT CALIFORNIA INTERMEDIATE
BOND MUNICIPAL MUNICIPAL
FUND FUND FUND
--------------- --------------- ---------------
NET ASSETS CONSIST OF:
Undistributed net investment income/
(accumulated net investment loss) .. $ 46,690 $ 65,009 $ 63,556
Accumulated net realized gain/(loss)
on investment transactions ......... 2,244,218 694,182 490,601
Net unrealized appreciation/
(depreciation) of
investments ....................... 24,110,350 30,979,898 7,640,498
Paid-in capital ....................... 245,201,028 563,295,061 194,014,592
--------------- --------------- ---------------
Total Net Assets ................... $ 271,602,286 $ 595,034,150 $ 202,209,247
=============== =============== ===============
NET ASSETS:
Class A Shares ........................ $ 218,845,284 $ 280,439,173 $ 84,666,427
=============== =============== ===============
Class B Shares ........................ $ 49,875,859 $ 304,255,107 $ 105,240,397
=============== =============== ===============
Class C Shares ........................ $ 2,881,143 $ 10,339,870 $ 12,302,423
=============== =============== ===============
Class I Shares ........................ -- -- --
SHARES OUTSTANDING:
Class A Shares ........................ 27,263,081 24,538,936 7,560,304
=============== =============== ===============
Class B Shares ........................ 6,212,959 26,621,894 9,397,338
=============== =============== ===============
Class C Shares ........................ 358,901 904,748 1,098,572
=============== =============== ===============
Class I Shares ........................ -- -- --
$ 8.41 $ 11.97 $ 11.73
CLASS A SHARES:
Net asset value per share of
beneficial interest
outstanding * ...................... $ 8.03 $ 11.43 $ 11.20
=============== =============== ===============
Maximum sales charge .................. 4.50% 4.50% 4.50%
=============== =============== ===============
Maximum offering price
per share of beneficial
interest outstanding ............... $ 8.41 $ 11.97 $ 11.73
=============== =============== ===============
CLASS B SHARES:
Net asset value and offering
price per share of
beneficial interest
outstanding * ...................... $ 8.03 $ 11.43 $ 11.20
=============== =============== ===============
CLASS C SHARES:
Net asset value per share
of beneficial interest
outstanding * ...................... $ 8.03 $ 11.43 $ 11.20
=============== =============== ===============
Maximum sales charge .................. 1.00% 1.00% 1.00%
=============== =============== ===============
Maximum offering price
per share of beneficial
interest outstanding ............... $ 8.11 $ 11.55 $ 11.31
=============== =============== ===============
CLASS I SHARES:
Net asset value, offering
and redemption price per
share of beneficial
interest outstanding ............... -- -- --
- ------------------------------------
* Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge and/or applicable redemption
fees for Class A Shares of the International Growth Fund.
See Notes to Financial Statements.
4-5 spread
STATEMENTS of OPERATIONS
WM GROUP OF FUNDS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)
EQUITY GROWTH & WEST COAST MID CAP
REIT INCOME INCOME EQUITY STOCK GROWTH
FUND* FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ ------------
INVESTMENT INCOME:
Dividends .................... $ 945,009 $ 8,592,886 $ 13,047,223 $ 4,448,411 $ 1,628,148 $ 2,675,955
Interest ..................... 33,469 3,344,377 251,474 188,766 149,919 328,528
Foreign withholding taxes .... -- (53,678) (127,273) -- -- (58,866)
Securities lending income .... -- 41,938 17,095 53,230 28,317 47,578
------------ ------------ ------------ ------------ ------------ ------------
Total investment income ... 978,478 11,925,523 13,188,519 4,690,407 1,806,384 2,993,195
------------ ------------ ------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fee ...... 147,115 1,749,448 3,213,683 2,001,904 1,049,519 2,380,146
Custodian fees ............... 1,145 16,276 30,538 18,909 7,983 52,549
Legal and audit fees ......... 7,862 28,160 39,590 27,638 21,240 63,406
Registration and filing fees . 16,032 21,968 9,176 51,670 23,909 23,643
Printing and postage expenses 5,092 110,266 228,022 176,383 25,373 232,363
Other ........................ 6,200 78,065 164,022 119,534 25,946 127,858
Shareholder servicing
and distribution fees:
Class A Shares ............ 92 249,774 579,810 467,730 35,391 114,725
Class B Shares ............ 434 406,303 576,551 499,785 66,839 600,927
Class C Shares ............ 97 9,855 1,366 7,520 790 1,343
Transfer agent fees:
Class A Shares ............ 116 100,108 243,405 226,638 15,824 237,355
Class B Shares ............ 144 124,760 237,600 194,194 33,010 417,570
Class C Shares ............ 31 1,700 376 1,932 281 333
------------ ------------ ------------ ------------ ------------ ------------
Total expenses ............ 184,360 2,896,683 5,324,139 3,793,837 1,306,105 4,252,218
Fees waived by the investment
advisor and/or
transfer agent ............ -- -- -- -- -- --
Fees reduced by
custodian credits ......... -- (81) (105) (16) (58) (222)
------------ ------------ ------------ ------------ ------------ ------------
Net expenses ................. 184,360 2,896,602 5,324,034 3,793,821 1,306,047 4,251,996
------------ ------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME/(LOSS) . 794,118 9,028,921 7,864,485 896,586 500,337 (1,258,801)
------------ ------------ ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain/(loss) on
investment transactions ... 63,298 1,393,626 (49,062,705) (1,840,664) (3,962,516) (31,316,673)
Net change in unrealized
appreciation/(depreciation)
of investments ............ 4,379,517 31,652,876 94,099,948 30,625,689 15,147,097 57,071,562
------------ ------------ ------------ ------------ ------------ ------------
Net realized and unrealized
gain on investments ....... 4,442,815 33,046,502 45,037,243 28,785,025 11,184,581 25,754,889
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .... $ 5,236,933 $ 42,075,423 $ 52,901,728 $ 29,681,611 $ 11,684,918 $ 24,496,088
============ ============ ============ ============ ============ ============
U.S.
SMALL CAP INTERNATIONAL SHORT TERM GOVERNMENT HIGH
STOCK GROWTH INCOME SECURITIES INCOME YIELD
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------ ------------
INVESTMENT INCOME:
Dividends .................... $ 532,128 $ 2,536,088 $ -- $ -- $ 162,500 $ 797,763
Interest ..................... 31,294 56,699 4,094,777 22,403,238 28,131,959 16,784,545
Foreign withholding taxes .... -- (273,019) -- -- -- --
Securities lending income .... 489,259 64,443 21,295 92,707 130,481 98,456
------------ ------------ ------------ ------------ ------------ ------------
Total investment income .. 1,052,681 2,384,211 4,116,072 22,495,945 28,424,940 17,680,764
------------ ------------ ------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fee ...... 843,445 972,883 406,206 2,289,779 2,113,593 1,042,372
Custodian fees ............... 9,881 102,385 6,844 30,632 25,872 11,376
Legal and audit fees ......... 18,909 20,178 17,971 33,399 31,882 22,556
Registration and filing fees . 24,741 22,468 22,445 39,860 34,395 27,806
Printing and postage expenses 74,150 29,632 21,300 109,267 64,588 18,756
Other ........................ 31,100 38,097 21,830 112,543 88,403 30,673
Shareholder servicing
and distribution fees:
Class A Shares ............ 55,962 25,479 39,753 249,390 169,312 24,425
Class B Shares ............ 66,636 21,033 147,704 1,485,925 822,855 259,250
Class C Shares ............ 368 262 41,761 75,156 54,108 28,155
Transfer agent fees:
Class A Shares ............ 121,934 43,729 24,831 114,036 89,380 8,086
Class B Shares ............ 70,282 20,477 16,878 139,176 77,368 22,510
Class C Shares ............ 134 141 2,422 4,573 2,758 1,673
------------ ------------ ------------ ------------ ------------ ------------
Total expenses ............ 1,317,542 1,296,764 769,945 4,683,736 3,574,514 1,497,638
Fees waived by the investment
advisor and/or
transfer agent ............ -- -- (44,131) -- -- --
Fees reduced by
custodian credits ......... (782) (8) (314) (150) (155) (382)
------------ ------------ ------------ ------------ ------------ ------------
Net expenses ................. 1,316,760 1,296,756 725,500 4,683,586 3,574,359 1,497,256
------------ ------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME/(LOSS). (264,079) 1,087,455 3,390,572 17,812,359 24,850,581 16,183,508
------------ ------------ ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain/(loss) on
investment transactions ... (11,949,524) (7,930,017) (75,589) 444,364 444,815 (14,652,435)
Net change in unrealized
appreciation/(depreciation)
of investments ............ 28,642,758 8,580,541 4,545,197 487,444 41,657,690 57,591,494
------------ ------------ ------------ ------------ ------------ ------------
Net realized and unrealized
gain on investments ....... 16,693,234 650,524 4,469,608 931,808 42,102,505 42,939,059
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .... $ 16,429,155 $ 1,737,979 $ 7,860,180 $ 18,744,167 $ 66,953,086 $ 59,122,567
============ ============ ============ ============ ============ ============
CALIFORNIA
INSURED
TAX-EXEMPT CALIFORNIA INTERMEDIATE
BOND MUNICIPAL MUNICIPAL
FUND FUND FUND
------------ ------------ ------------
INVESTMENT INCOME:
Dividends .................... $ -- $ -- $ --
Interest ..................... 6,723,229 14,524,256 3,443,589
Foreign withholding taxes .... -- -- --
Securities lending income .... -- -- --
------------ ------------ ------------
Total investment income ... 6,723,229 14,524,256 3,443,589
------------ ------------ ------------
EXPENSES:
Investment advisory fee ...... 648,343 1,464,884 429,325
Custodian fees ............... 7,895 16,137 5,994
Legal and audit fees ......... 19,780 26,450 17,812
Registration and filing fees . 24,469 14,484 14,621
Printing and postage expenses 27,253 52,534 13,189
Other ........................ 39,469 76,735 24,623
Shareholder servicing
and distribution fees:
Class A Shares ............ 264,331 350,644 82,835
Class B Shares ............ 239,667 1,486,429 480,200
Class C Shares ............ 13,933 40,764 47,113
Transfer agent fees:
Class A Shares ............ 53,682 55,903 8,991
Class B Shares ............ 9,698 49,616 18,825
Class C Shares ............ 390 1,028 1,684
------------ ------------ ------------
Total expenses ........... 1,348,910 3,635,608 1,145,212
Fees waived by the investment
advisor and/or
transfer agent ............ -- -- (81,864)
Fees reduced by
custodian credits ......... (775) (1,807) (1,605)
------------ ------------ ------------
Net expenses ............. 1,348,135 3,633,801 1,061,743
------------ ------------ ------------
NET INVESTMENT INCOME/(LOSS) . 5,375,094 10,890,455 2,381,846
------------ ------------ ------------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain/(loss) on
investment transactions ... 2,074,194 417,837 430,876
Net change in unrealized
appreciation/(depreciation)
of investments ............ 2,611,950 7,616,975 2,252,677
------------ ------------ ------------
Net realized and unrealized
gain on investments ....... 4,686,144 8,034,812 2,683,553
------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .... $ 10,061,238 $ 18,925,267 $ 5,065,399
============ ============ ============
- -----------------------------------
* The REIT Fund commenced operations on March 1, 2003.
See Notes to Financial Statements.
6-7 spread
STATEMENTS of CHANGES in NET assets
WM GROUP OF FUNDS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)
EQUITY GROWTH & WEST COAST MID CAP
REIT INCOME INCOME EQUITY STOCK
FUND* FUND FUND FUND FUND
--------------- --------------- --------------- --------------- ---------------
Net investment income/(loss) . $ 794,118 $ 9,028,921 $ 7,864,485 $ 896,586 $ 500,337
Net realized gain/(loss) on
investment transactions ... 63,298 1,393,626 (49,062,705) (1,840,664) (3,962,516)
Net change in unrealized
appreciation/(depreciation)
of investments ............ 4,379,517 31,652,876 94,099,948 30,625,689 15,147,097
--------------- --------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations . 5,236,933 42,075,423 52,901,728 29,681,611 11,684,918
Distributions to shareholders
from:
Net investment income:
Class A Shares ......... -- (2,756,676) (4,443,092) -- --
Class B Shares ......... -- (728,214) -- -- --
Class C Shares ......... -- (19,707) (1,824) -- --
Class I Shares ......... -- (5,478,056) (8,955,041) -- (730,934)
Net realized gains on
investments:
Class A Shares ......... -- -- -- -- --
Class B Shares ......... -- -- -- -- --
Class C Shares ......... -- -- -- -- --
Class I Shares ......... -- -- -- -- --
Net increase/(decrease)
in net assets from
Fund share transactions:
Class A Shares ......... 597,868 7,150,314 (4,994,985) 2,721,567 761,041
Class B Shares ......... 595,392 (2,427,675) (15,604,170) (7,364,152) 139,315
Class C Shares ......... 149,794 246,819 28,067 251,193 128,324
Class I Shares ......... 115,821,290 (1,567,305) (50,531,536) 14,022,672 8,419,241
Redemption fees ........ -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Net increase/(decrease)
in net assets ............. 122,401,277 36,494,923 (31,600,853) 39,312,891 20,401,905
NET ASSETS:
Beginning of period .......... -- 633,051,081 1,269,888,377 674,398,292 272,940,891
--------------- --------------- --------------- --------------- ---------------
End of period ................ $ 122,401,277 $ 669,546,004 $ 1,238,287,524 $ 713,711,183 $ 293,342,796
=============== =============== =============== =============== ===============
Undistributed net investment
income/(accumulated net
investment loss)
at end of period .......... $ 794,118 $ 2,256,221 $ 5,181,912 $ 896,586 $ 376,799
=============== =============== =============== =============== ===============
U.S.
SMALL CAP INTERNATIONAL SHORT TERM GOVERNMENT
GROWTH STOCK GROWTH INCOME SECURITIES
FUND FUND FUND FUND FUND
--------------- --------------- --------------- --------------- ---------------
Net investment income/(loss) . $ (1,258,801) $ (264,079) $ 1,087,455 $ 3,390,572 $ 17,812,359
Net realized gain/(loss) on
investment transactions ... (31,316,673) (11,949,524) (7,930,017) (75,589) 444,364
Net change in unrealized
appreciation/(depreciation)
of investments ............ 57,071,562 28,642,758 8,580,541 4,545,197 487,444
--------------- --------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations . 24,496,088 16,429,155 1,737,979 7,860,180 18,744,167
Distributions to shareholders
from:
Net investment income:
Class A Shares ......... -- -- (132,000) (718,194) (4,894,915)
Class B Shares ......... -- -- -- (552,364) (6,173,666)
Class C Shares ......... -- -- (264) (152,675) (310,517)
Class I Shares ......... -- -- (2,398,061) (2,228,810) (10,658,315)
Net realized gains on
investments:
Class A Shares ......... -- -- -- -- --
Class B Shares ......... -- -- -- -- --
Class C Shares ......... -- -- -- -- --
Class I Shares ......... -- -- -- -- --
Net increase/(decrease)
in net assets from
Fund share transactions:
Class A Shares ......... (964,924) 3,458,788 424,738 10,148,921 14,108,268
Class B Shares ......... (12,072,009) (2,698,379) (986,379) 12,932,630 62,456,599
Class C Shares ......... 146,939 14,326 6,067 6,380,900 8,394,536
Class I Shares ......... 87,369,318 47,135,859 19,943,180 11,613,645 86,620,186
Redemption fees ........ -- -- 172,168 -- --
--------------- --------------- --------------- --------------- ---------------
Net increase/(decrease)
in net assets ............. 98,975,412 64,339,749 18,767,428 45,284,233 168,286,343
NET ASSETS:
Beginning of period .......... 580,350,123 180,910,671 211,239,778 147,680,755 845,207,818
--------------- --------------- --------------- --------------- ---------------
End of period ................ $ 679,325,535 $ 245,250,420 $ 230,007,206 $ 192,964,988 $ 1,013,494,161
=============== =============== =============== =============== ===============
Undistributed net investment
income/(accumulated net
investment loss)
at end of period .......... $ (1,087,316) $ (264,079) $ 603,253 $ (195,101) $ (3,577,146)
=============== =============== =============== =============== ===============
CALIFORNIA
INSURED
HIGH TAX-EXEMPT CALIFORNIA INTERMEDIATE
INCOME YIELD BOND MUNICIPAL MUNICIPAL
FUND FUND FUND FUND FUND
--------------- --------------- --------------- --------------- ---------------
Net investment income/(loss) . $ 24,850,581 $ 16,183,508 $ 5,375,094 $ 10,890,455 $ 2,381,846
Net realized gain/(loss) on
investment transactions ... 444,815 (14,652,435) 2,074,194 417,837 430,876
Net change in unrealized
appreciation/(depreciation)
of investments ............ 41,657,690 57,591,494 2,611,950 7,616,975 2,252,677
--------------- --------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations . 66,953,086 59,122,567 10,061,238 18,925,267 5,065,399
Distributions to shareholders
from:
Net investment income:
Class A Shares ......... (4,252,175) (913,642) (4,490,714) (5,757,737) (1,070,293)
Class B Shares ......... (4,544,245) (2,280,470) (838,408) (4,984,762) (1,193,075)
Class C Shares ......... (298,863) (234,856) (48,860) (135,171) (115,774)
Class I Shares ......... (17,826,480) (13,840,205) -- -- --
Net realized gains on
investments:
Class A Shares ......... -- -- (1,784,665) (1,835,197) (290,270)
Class B Shares ......... -- -- (397,396) (1,909,101) (455,463)
Class C Shares ......... -- -- (21,226) (46,077) (42,579)
Class I Shares ......... -- -- -- -- --
Net increase/(decrease)
in net assets from
Fund share transactions:
Class A Shares ......... 11,188,241 18,421,485 3,177,795 (7,640,765) 26,820,527
Class B Shares ......... 55,093,726 16,683,507 2,117,777 6,398,259 14,956,226
Class C Shares ......... 6,079,345 7,899,194 450,697 3,597,301 4,239,651
Class I Shares ......... 73,175,259 38,153,089 -- -- --
Redemption fees ........ -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Net increase/(decrease)
in net assets ............. 185,567,894 123,010,669 8,226,238 6,612,017 47,914,349
NET ASSETS:
Beginning of period .......... 767,783,851 305,061,143 263,376,048 588,422,133 154,294,898
--------------- --------------- --------------- --------------- ---------------
End of period ................ $ 953,351,745 $ 428,071,812 $ 271,602,286 $ 595,034,150 $ 202,209,247
=============== =============== =============== =============== ===============
Undistributed net investment
income/(accumulated net
investment loss)
at end of period .......... $ (1,295,267) $ (1,084,603) $ 46,690 $ 65,009 $ 63,556
=============== =============== =============== =============== ===============
- -------------------------------
* The REIT Fund commenced operations on March 1, 2003.
See Notes to Financial Statements.
8-9 spread
STATEMENTS of CHANGES in NET assets (continued)
WM GROUP OF FUNDS
FOR THE YEAR ENDED OCTOBER 31, 2002
EQUITY GROWTH & WEST COAST MID CAP
INCOME INCOME EQUITY STOCK GROWTH
FUND FUND FUND FUND FUND
--------------- --------------- --------------- --------------- ---------------
Net investment income/(loss) . $ 17,795,252 $ 12,332,601 $ 59,702 $ 617,151 $ (4,111,819)
Net realized gain/(loss) on
investment transactions ... (3,235,878) (32,166,441) (12,409,673) (2,402,636) (150,464,889)
Net increase from payments
by a related party ........ -- -- -- -- 3,387,886
Net change in unrealized
appreciation/(depreciation)
of investments ............ (100,836,906) (213,211,961) (111,615,987) (14,761,671) (26,851,806)
--------------- --------------- --------------- --------------- ---------------
Net increase/(decrease)
in net assets
resulting from operations . (86,277,532) (233,045,801) (123,965,958) (16,547,156) (178,040,628)
Distributions to shareholders
from:
Net investment income:
Class A Shares ......... (5,410,715) (697,875) (1,177,700) -- --
Class B Shares ......... (1,384,529) (6,169) (2,896) -- --
Class C Shares ......... (19,391) -- -- -- --
Class I Shares ......... (9,061,157) (1,824,626) (1,122,522) (397,973) --
Net realized gains
on investments:
Class A Shares ......... (4,485,391) (8,851,717) (15,119,050) (232,275) --
Class B Shares ......... (1,483,636) (3,027,861) (4,225,635) (398,885) --
Class I Shares ......... (5,461,425) (12,468,189) (6,308,073) (8,297,093) --
Net increase/(decrease)
in net assets
from Fund share
transactions:
Class A Shares ......... 22,372,717 16,629,208 35,943,997 25,381,584 (22,991,294)
Class B Shares ......... 29,568,442 (29,887,599) 19,420,293 4,605,860 (41,118,513)
Class C Shares ......... 2,168,435 306,776 1,683,187 67,712 226,668
Class I Shares ......... 160,078,800 27,738,336 56,099,629 32,271,903 246,627,300
Redemption fees ........ -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Net increase/(decrease)
in net assets ............. 100,604,618 (245,135,517) (38,774,728) 36,453,677 4,703,533
NET ASSETS:
Beginning of year ............ 532,446,463 1,515,023,894 713,173,020 236,487,214 575,646,590
--------------- --------------- --------------- --------------- ---------------
End of year .................. $ 633,051,081 $ 1,269,888,377 $ 674,398,292 $ 272,940,891 $ 580,350,123
=============== =============== =============== =============== ===============
Undistributed net
investment income
at end of year ............ $ 2,209,953 $ 10,717,384 $ -- $ 607,396 $ 171,485
=============== =============== =============== =============== ===============
U.S.
SMALL CAP INTERNATIONAL SHORT TERM GOVERNMENT
STOCK GROWTH INCOME SECURITIES INCOME
FUND FUND FUND FUND FUND
--------------- --------------- --------------- --------------- ---------------
Net investment income/(loss) . $ (1,963,769) $ 727,468 $ 7,975,917 $ 34,494,508 $ 44,916,507
Net realized gain/(loss) on
investment transactions ... (26,327,410) (15,074,146) (1,258,838) 1,841,630 (3,029,819)
Net increase from payments
by a related party ........ -- -- -- -- --
Net change in unrealized
appreciation/(depreciation)
of investments ............ (61,873,664) (9,475,235) (2,355,096) 4,047,464 (15,640,058)
--------------- --------------- --------------- --------------- ---------------
Net increase/(decrease)
in net assets
resulting from operations . (90,164,843) (23,821,913) 4,361,983 40,383,602 26,246,630
Distributions to shareholders
from:
Net investment income:
Class A Shares ......... -- (170,970) (1,101,248) (9,231,192) (8,125,707)
Class B Shares ......... -- (12,443) (516,826) (7,925,972) (5,952,703)
Class C Shares ......... -- (103) (36,227) (104,942) (122,534)
Class I Shares ......... -- (3,045,274) (6,424,229) (20,353,215) (33,115,276)
Net realized gains
on investments:
Class A Shares ......... (4,663,127) -- -- -- --
Class B Shares ......... (2,251,033) -- -- -- --
Class I Shares ......... (9,675,819) -- -- -- --
Net increase/(decrease)
in net assets
from Fund share
transactions:
Class A Shares ......... 5,233,867 7,270,436 9,724,907 22,450,201 14,089,191
Class B Shares ......... (2,318,753) (1,743,353) 18,332,176 142,262,185 72,825,350
Class C Shares ......... 107,023 61,929 5,773,856 11,564,144 7,756,851
Class I Shares ......... 54,573,534 83,905,785 (18,667,162) 62,305,101 113,203,391
Redemption fees ........ -- 102,230 -- -- --
--------------- --------------- --------------- --------------- ---------------
Net increase/(decrease)
in net assets ............. (49,159,151) 62,546,324 11,447,230 241,349,912 186,805,193
NET ASSETS:
Beginning of year ............ 230,069,822 148,693,454 136,233,525 603,857,906 580,978,658
--------------- --------------- --------------- --------------- ---------------
End of year .................. $ 180,910,671 $ 211,239,778 $ 147,680,755 $ 845,207,818 $ 767,783,851
=============== =============== =============== =============== ===============
Undistributed net
investment income
at end of year ............ $ -- $ 2,046,123 $ 66,370 $ 647,908 $ 775,915
=============== =============== =============== =============== ===============
CALIFORNIA
INSURED
HIGH TAX-EXEMPT CALIFORNIA INTERMEDIATE
YIELD BOND MUNICIPAL MUNICIPAL
FUND FUND FUND FUND
--------------- --------------- --------------- ---------------
Net investment income/(loss) . $ 29,729,869 $ 11,441,133 $ 22,436,655 $ 3,726,900
Net realized gain/(loss) on
investment transactions ... (16,272,123) 2,372,985 8,618,573 919,766
Net increase from payments
by a related party ........ -- -- -- --
Net change in unrealized
appreciation/(depreciation)
of investments ............ (18,544,515) (1,504,270) (8,062,810) 770,054
--------------- --------------- --------------- ---------------
Net increase/(decrease)
in net assets
resulting from operations . (5,086,769) 12,309,848 22,992,418 5,416,720
Distributions to shareholders
from:
Net investment income:
Class A Shares ......... (1,392,925) (9,579,088) (12,526,740) (1,696,342)
Class B Shares ......... (4,213,906) (1,696,175) (9,589,166) (1,928,497)
Class C Shares ......... (108,943) (28,681) (75,003) (58,977)
Class I Shares ......... (27,972,411) -- -- --
Net realized gains
on investments:
Class A Shares ......... -- (327,437) -- (204,967)
Class B Shares ......... -- (67,711) -- (269,853)
Class I Shares ......... -- -- -- --
Net increase/(decrease)
in net assets
from Fund share
transactions:
Class A Shares ......... 6,183,795 (6,692,583) (5,115,663) 16,782,863
Class B Shares ......... 13,701,855 3,231,998 57,411,305 36,827,997
Class C Shares ......... 2,818,764 2,365,337 6,599,155 7,905,538
Class I Shares ......... 75,320,471 -- -- --
Redemption fees ........ -- -- -- --
--------------- --------------- --------------- ---------------
Net increase/(decrease)
in net assets ............. 59,249,931 (484,492) 59,696,306 62,774,482
NET ASSETS:
Beginning of year ............ 245,811,212 263,860,540 528,725,827 91,520,416
--------------- --------------- --------------- ---------------
End of year .................. $ 305,061,143 $ 263,376,048 $ 588,422,133 $ 154,294,898
=============== =============== =============== ===============
Undistributed net
investment income
at end of year ............ $ 1,062 $ 49,578 $ 52,224 $ 60,852
=============== =============== =============== ===============
See Notes to Financial Statements.
10-11 spread
STATEMENTS of CHANGES in NET assets -- CAPITAL stock ACTIVITY
WM Group of Funds
REIT
FUND* EQUITY INCOME FUND GROWTH & INCOME FUND
------------- ------------------------------ ------------------------------
PERIOD SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
04/30/03 04/30/03 YEAR ENDED 04/30/03 YEAR ENDED
(UNAUDITED) (UNAUDITED) 10/31/02 (UNAUDITED) 10/31/02
------------- ------------- ------------- ------------- -------------
AMOUNT
CLASS A:
Sold .................... $ 597,868 $ 26,081,024 $ 53,361,546 $ 37,913,415 $ 115,319,754
Issued as reinvestment of
dividends ............ -- 2,590,351 9,388,317 4,314,972 9,270,125
Redeemed ................ -- (21,521,061) (40,377,146) (47,223,372) (107,960,671)
------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . $ 597,868 $ 7,150,314 $ 22,372,717 $ (4,994,985) $ 16,629,208
============= ============= ============= ============= =============
CLASS B:
Sold .................... $ 596,703 $ 10,778,942 $ 55,360,071 $ 4,558,276 $ 18,456,976
Issued as reinvestment of
dividends ............ -- 702,081 2,784,067 -- 2,981,841
Redeemed ................ (1,311) (13,908,698) (28,575,696) (20,162,446) (51,326,416)
------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . $ 595,392 $ (2,427,675) $ 29,568,442 $ (15,604,170) $ (29,887,599)
============= ============= ============= ============= =============
CLASS C:
Sold .................... $ 149,794 $ 418,148 $ 2,982,226 $ 43,559 $ 321,234
Issued as reinvestment of
dividends ............ -- 16,037 17,490 1,824 --
Redeemed ................ -- (187,366) (831,281) (17,316) (14,458)
------------- ------------- ------------- ------------- -------------
Net increase ............ $ 149,794 $ 246,819 $ 2,168,435 $ 28,067 $ 306,776
============= ============= ============= ============= =============
CLASS I:
Sold .................... $ 115,876,290 $ 31,836,639 $ 155,552,718 $ 31,793,423 $ 163,737,521
Issued as reinvestment of
dividends ............ -- 5,478,056 14,522,582 8,955,041 14,292,815
Redeemed ................ (55,000) (38,882,000) (9,996,500) (91,280,000) (150,292,000)
------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . $ 115,821,290 $ (1,567,305) $ 160,078,800 $ (50,531,536) $ 27,738,336
============= ============= ============= ============= =============
SHARES
CLASS A:
Sold .................... 57,980 2,029,241 3,649,195 2,080,160 5,596,417
Issued as reinvestment of
dividends ............ -- 203,929 633,032 231,739 398,260
Redeemed ................ -- (1,674,692) (2,905,452) (2,594,749) (5,309,843)
------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . 57,980 558,478 1,376,775 (282,850) 684,834
============= ============= ============= ============= =============
CLASS B:
Sold .................... 58,412 839,874 3,737,547 257,580 878,495
Issued as reinvestment of
dividends ............ -- 55,502 188,350 -- 131,998
Redeemed ................ (126) (1,092,892) (2,057,622) (1,139,232) (2,642,211)
------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . 58,286 (197,516) 1,868,275 (881,652) (1,631,718)
============= ============= ============= ============= =============
CLASS C:
Sold .................... 14,570 32,468 202,396 2,464 15,717
Issued as reinvestment of
dividends ............ -- 1,266 1,262 102 --
Redeemed ................ -- (14,738) (62,615) (1,026) (820)
------------- ------------- ------------- ------------- -------------
Net increase ............ 14,570 18,996 141,043 1,540 14,897
============= ============= ============= ============= =============
CLASS I:
Sold .................... 11,574,946 2,462,195 10,296,562 1,754,034 8,138,909
Issued as reinvestment of
dividends ............ -- 431,043 987,990 480,163 612,938
Redeemed ................ (5,446) (3,123,804) (778,162) (5,173,561) (6,845,722)
------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . 11,569,500 (230,566) 10,506,390 (2,939,364) 1,906,125
============= ============= ============= ============= =============
WEST COAST EQUITY MID CAP
FUND STOCK FUND GROWTH FUND
------------------------------ ------------------------------ ------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
04/30/03 YEAR ENDED 04/30/03 YEAR ENDED 04/30/03 YEAR ENDED
(UNAUDITED) 10/31/02 (UNAUDITED) 10/31/02 (UNAUDITED) 10/31/02
------------- ------------- ------------- ------------- ------------- -------------
AMOUNT
CLASS A:
Sold .................... $ 37,181,109 $ 87,170,821 $ 6,415,543 $ 29,821,711 $ 10,458,717 $ 17,590,516
Issued as reinvestment of
dividends ............ -- 15,956,585 -- 224,934 -- --
Redeemed ................ (34,459,542) (67,183,409) (5,654,502) (4,665,061) (11,423,641) (40,581,810)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . $ 2,721,567 $ 35,943,997 $ 761,041 $ 25,381,584 $ (964,924) $ (22,991,294)
============= ============= ============= ============= ============= =============
CLASS B:
Sold .................... $ 7,618,320 $ 48,734,157 $ 1,895,185 $ 7,790,303 $ 4,031,502 $ 11,992,979
Issued as reinvestment of
dividends ............ -- 4,129,318 -- 394,086 -- --
Redeemed ................ (14,982,472) (33,443,182) (1,755,870) (3,578,529) (16,103,511) (53,111,492)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . $ (7,364,152) $ 19,420,293 $ 139,315 $ 4,605,860 $ (12,072,009) $ (41,118,513)
============= ============= ============= ============= ============= =============
CLASS C:
Sold .................... $ 400,976 $ 1,860,648 $ 131,494 $ 90,982 $ 314,226 $ 312,014
Issued as reinvestment of
dividends ............ -- -- -- -- -- --
Redeemed ................ (149,783) (177,461) (3,170) (23,270) (167,287) (85,346)
------------- ------------- ------------- ------------- ------------- -------------
Net increase ............ $ 251,193 $ 1,683,187 $ 128,324 $ 67,712 $ 146,939 $ 226,668
============= ============= ============= ============= ============= =============
CLASS I:
Sold .................... $ 17,308,672 $ 50,593,034 $ 21,011,307 $ 42,954,837 $ 100,548,318 $ 258,201,800
Issued as reinvestment of
dividends ............ -- 7,430,595 730,934 8,695,066 -- --
Redeemed ................ (3,286,000) (1,924,000) (13,323,000) (19,378,000) (13,179,000) (11,574,500)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . $ 14,022,672 $ 56,099,629 $ 8,419,241 $ 32,271,903 $ 87,369,318 $ 246,627,300
============= ============= ============= ============= ============= =============
SHARES
CLASS A:
Sold .................... 1,556,711 3,023,588 506,186 2,175,057 916,329 1,317,356
Issued as reinvestment of
dividends ............ -- 518,191 -- 16,430 -- --
Redeemed ................ (1,436,998) (2,492,874) (447,447) (367,448) (1,008,220) (3,024,246)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . 119,713 1,048,905 58,739 1,824,039 (91,891) (1,706,890)
============= ============= ============= ============= ============= =============
CLASS B:
Sold .................... 346,751 1,809,188 154,009 568,193 383,291 898,472
Issued as reinvestment of
dividends ............ -- 145,400 -- 29,235 -- --
Redeemed ................ (686,834) (1,355,627) (143,573) (274,915) (1,551,511) (4,345,770)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . (340,083) 598,961 10,436 322,513 (1,168,220) (3,447,298)
============= ============= ============= ============= ============= =============
CLASS C:
Sold .................... 18,106 69,964 10,757 6,472 30,029 25,374
Issued as reinvestment of
dividends ............ -- -- -- -- -- --
Redeemed ................ (6,852) (8,311) (261) (1,951) (16,737) (6,565)
------------- ------------- ------------- ------------- ------------- -------------
Net increase ............ 11,254 61,653 10,496 4,521 13,292 18,809
============= ============= ============= ============= ============= =============
CLASS I:
Sold .................... 717,412 1,947,752 1,649,528 3,190,245 8,808,741 18,248,139
Issued as reinvestment of
dividends ............ -- 240,527 56,574 630,576 -- --
Redeemed ................ (139,327) (84,179) (1,069,045) (1,516,745) (1,187,139) (969,606)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) . 578,085 2,104,100 637,057 2,304,076 7,621,602 17,278,533
============= ============= ============= ============= ============= =============
SMALL CAP INTERNATIONAL
STOCK FUND GROWTH FUND
------------------------------ ------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
04/30/03 YEAR ENDED 04/30/03 YEAR ENDED
(UNAUDITED) 10/31/02 (UNAUDITED) 10/31/02
------------- ------------- ------------- -------------
AMOUNT
CLASS A:
Sold .................... $ 9,915,842 $ 21,455,540 $ 12,103,586 $ 46,857,661
Issued as reinvestment of
dividends ............ -- 4,574,112 129,498 167,344
Redeemed ................ (6,457,054) (20,795,785) (11,808,346) (39,754,569)
------------- ------------- ------------- -------------
Net increase/(decrease) . $ 3,458,788 $ 5,233,867 $ 424,738 $ 7,270,436
============= ============= ============= =============
CLASS B:
Sold .................... $ 527,379 $ 6,031,973 $ 195,618 $ 401,247
Issued as reinvestment of
dividends ............ -- 2,062,715 -- 12,312
Redeemed ................ (3,225,758) (10,413,441) (1,181,997) (2,156,912)
------------- ------------- ------------- -------------
Net increase/(decrease) . $ (2,698,379) $ (2,318,753) $ (986,379) $ (1,743,353)
============= ============= ============= =============
CLASS C:
Sold .................... $ 15,267 $ 107,195 $ 15,946 $ 64,789
Issued as reinvestment of
dividends ............ -- -- 264 103
Redeemed ................ (941) (172) (10,143) (2,963)
------------- ------------- ------------- -------------
Net increase ............ $ 14,326 $ 107,023 $ 6,067 $ 61,929
============= ============= ============= =============
CLASS I:
Sold .................... $ 48,035,859 $ 45,854,715 $ 17,964,119 $ 89,934,511
Issued as reinvestment of
dividends ............ -- 9,675,819 2,398,061 3,045,274
Redeemed ................ (900,000) (957,000) (419,000) (9,074,000)
------------- ------------- ------------- -------------
Net increase/(decrease) . $ 47,135,859 $ 54,573,534 $ 19,943,180 $ 83,905,785
============= ============= ============= =============
SHARES
CLASS A:
Sold .................... 1,182,504 2,051,662 1,844,527 6,083,994
Issued as reinvestment of
dividends ............ -- 306,802 19,044 21,838
Redeemed ................ (783,179) (1,992,525) (1,784,886) (5,137,374)
------------- ------------- ------------- -------------
Net increase/(decrease) . 399,325 365,939 78,685 968,458
============= ============= ============= =============
CLASS B:
Sold .................... 69,300 510,102 31,136 52,825
Issued as reinvestment of
dividends ............ -- 152,144 -- 1,837
Redeemed ................ (427,980) (1,092,905) (185,142) (303,868)
------------- ------------- ------------- -------------
Net increase/(decrease) . (358,680) (430,659) (154,006) (249,206)
============= ============= ============= =============
CLASS C:
Sold .................... 2,075 9,269 2,487 8,595
Issued as reinvestment of
dividends ............ -- -- 40 16
Redeemed ................ (124) (22) (1,558) (460)
------------- ------------- ------------- -------------
Net increase ............ 1,951 9,247 969 8,151
============= ============= ============= =============
CLASS I:
Sold .................... 5,879,046 4,496,485 2,743,468 11,891,681
Issued as reinvestment of
dividends ............ -- 641,657 352,656 388,308
Redeemed ................ (107,020) (126,267) (61,895) (1,292,205)
------------- ------------- ------------- -------------
Net increase/(decrease) . 5,772,026 5,011,875 3,034,229 10,987,784
============= ============= ============= =============
- ------------------------------
* The REIT Fund commenced operations on March 1, 2003.
See Notes to Financial Statements.
12-13 spread
STATEMENTS of CHANGES in NET assets -- CAPITAL stock ACTIVITY (continued)
WM Group of Funds
SHORT TERM U.S. GOVERNMENT
INCOME FUND SECURITIES FUND INCOME FUND
----------------------------- ------------------------------ ------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
04/30/03 YEAR ENDED 04/30/03 YEAR ENDED 04/30/03 YEAR ENDED
(UNAUDITED) 10/31/02 (UNAUDITED) 10/31/02 (UNAUDITED) 10/31/02
------------- ------------- ------------- ------------- ------------- -------------
AMOUNT
CLASS A:
Sold .................. $ 19,762,462 $ 14,889,126 $ 43,544,898 $ 65,564,131 $ 24,261,991 $ 35,638,611
Issued as reinvestment
of dividends ....... 520,758 852,271 3,655,605 6,479,150 2,792,820 5,275,959
Redeemed .............. (10,134,299) (6,016,490) (33,092,235) (49,593,080) (15,866,570) (26,825,379)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) $ 10,148,921 $ 9,724,907 $ 14,108,268 $ 22,450,201 $ 11,188,241 $ 14,089,191
============= ============= ============= ============= ============= =============
CLASS B:
Sold .................. $ 18,446,847 $ 22,423,572 $ 91,070,911 $ 180,691,047 $ 69,376,004 $ 95,785,438
Issued as reinvestment
of dividends ....... 473,811 438,968 5,078,932 6,358,034 2,776,443 3,670,484
Redeemed .............. (5,988,028) (4,530,364) (33,693,244) (44,786,896) (17,058,721) (26,630,572)
------------- ------------- ------------- ------------- ------------- -------------
Net increase .......... $ 12,932,630 $ 18,332,176 $ 62,456,599 $ 142,262,185 $ 55,093,726 $ 72,825,350
============= ============= ============= ============= ============= =============
CLASS C:
Sold .................. $ 7,310,342 $ 6,069,613 $ 11,956,965 $ 12,094,100 $ 7,965,049 $ 8,128,690
Issued as reinvestment
of dividends ....... 127,784 28,307 231,955 87,894 210,865 86,418
Redeemed .............. (1,057,226) (324,064) (3,794,384) (617,850) (2,096,569) (458,257)
------------- ------------- ------------- ------------- ------------- -------------
Net increase .......... $ 6,380,900 $ 5,773,856 $ 8,394,536 $ 11,564,144 $ 6,079,345 $ 7,756,851
============= ============= ============= ============= ============= =============
CLASS I:
Sold .................. $ 18,798,835 $ 37,494,109 $ 80,728,671 $ 120,973,386 $ 86,539,779 $ 175,984,615
Issued as reinvestment
of dividends ....... 2,228,810 6,424,229 10,658,315 20,353,215 17,826,480 33,115,276
Redeemed .............. (9,414,000) (62,585,500) (4,766,800) (79,021,500) (31,191,000) (95,896,500)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) $ 11,613,645 $ (18,667,162) $ 86,620,186 $ 62,305,101 $ 73,175,259 $ 113,203,391
============= ============= ============= ============= ============= =============
SHARES
CLASS A:
Sold .................. 8,283,845 6,307,318 3,902,001 5,912,163 2,625,010 3,917,227
Issued as reinvestment
of dividends ....... 218,188 360,973 327,368 587,237 301,497 579,303
Redeemed .............. (4,254,757) (2,548,562) (2,967,070) (4,501,433) (1,724,517) (2,944,435)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) 4,247,276 4,119,729 1,262,299 1,997,967 1,201,990 1,552,095
============= ============= ============= ============= ============= =============
CLASS B:
Sold .................. 7,734,982 9,496,732 8,165,593 16,313,855 7,479,872 10,493,369
Issued as reinvestment
of dividends ....... 198,526 186,073 455,170 575,805 298,578 402,204
Redeemed .............. (2,514,342) (1,922,636) (3,023,197) (4,064,112) (1,845,232) (2,921,068)
------------- ------------- ------------- ------------- ------------- -------------
Net increase .......... 5,419,166 7,760,169 5,597,566 12,825,548 5,933,218 7,974,505
============= ============= ============= ============= ============= =============
CLASS C:
Sold .................. 3,068,692 2,575,299 1,072,577 1,088,068 861,388 893,585
Issued as reinvestment
of dividends ....... 53,505 12,037 20,790 7,885 22,667 9,511
Redeemed .............. (444,811) (137,691) (340,762) (55,355) (226,454) (50,399)
------------- ------------- ------------- ------------- ------------- -------------
Net increase .......... 2,677,386 2,449,645 752,605 1,040,598 657,601 852,697
============= ============= ============= ============= ============= =============
CLASS I:
Sold .................. 7,892,597 15,886,204 7,236,282 10,991,159 9,384,734 19,315,515
Issued as reinvestment
of dividends ....... 934,158 2,720,169 954,325 1,844,184 1,920,224 3,629,864
Redeemed .............. (3,957,811) (26,571,183) (425,793) (7,066,300) (3,347,033) (10,523,825)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) 4,868,944 (7,964,810) 7,764,814 5,769,043 7,957,925 12,421,554
============= ============= ============= ============= ============= =============
HIGH YIELD FUND TAX-EXEMPT BOND FUND
----------------------------- ------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
04/30/03 YEAR ENDED 04/30/03 YEAR ENDED
(UNAUDITED) 10/31/02 (UNAUDITED) 10/31/02
------------- ------------- ------------- -------------
AMOUNT
CLASS A:
Sold .................. $ 23,464,965 $ 15,328,868 $ 16,310,555 $ 19,237,007
Issued as reinvestment
of dividends ....... 483,973 613,377 4,575,237 6,866,719
Redeemed .............. (5,527,453) (9,758,450) (17,707,997) (32,796,309)
============= ============= ============= =============
Net increase/(decrease) $ 18,421,485 $ 6,183,795 $ 3,177,795 $ (6,692,583)
============= ============= ============= =============
CLASS B:
Sold .................. $ 21,270,814 $ 25,104,968 $ 7,455,643 $ 11,843,468
Issued as reinvestment
of dividends ....... 949,786 1,711,545 861,204 1,131,982
Redeemed .............. (5,537,093) (13,114,658) (6,199,070) (9,743,452)
------------- ------------- ------------- -------------
Net increase .......... $ 16,683,507 $ 13,701,855 $ 2,117,777 $ 3,231,998
============= ============= ============= =============
CLASS C:
Sold .................. $ 8,241,740 $ 3,154,230 $ 895,536 $ 2,384,015
Issued as reinvestment
of dividends ....... 131,667 59,738 62,746 25,986
Redeemed .............. (474,213) (395,204) (507,585) (44,664)
------------- ------------- ------------- -------------
Net increase .......... $ 7,899,194 $ 2,818,764 $ 450,697 $ 2,365,337
============= ============= ============= =============
CLASS I:
Sold .................. $ 34,392,027 $ 83,275,560 -- --
Issued as reinvestment
of dividends ....... 13,840,205 27,972,411 -- --
Redeemed .............. (10,079,143) (35,927,500) -- --
------------- ------------- ------------- -------------
Net increase/(decrease) $ 38,153,089 $ 75,320,471 -- --
============= ============= ============= =============
SHARES
CLASS A:
Sold .................. 3,293,292 2,134,772 2,052,075
2,454,134
Issued as reinvestment
of dividends ....... 67,941 80,257 576,815 877,090
Redeemed .............. (784,996) (1,384,596) (2,228,632) (4,180,938)
------------- ------------- ------------- -------------
Net increase/(decrease) 2,576,237 830,433 400,258 (849,714)
============= ============= ============= =============
CLASS B:
Sold .................. 2,985,572 3,493,853 938,151 1,505,576
Issued as reinvestment
of dividends ....... 133,532 219,287 108,661 144,570
Redeemed .............. (780,838) (1,845,525) (781,074) (1,245,394)
------------- ------------- ------------- -------------
Net increase .......... 2,338,266 1,867,615 265,738 404,752
============= ============= ============= =============
CLASS C:
Sold .................. 1,156,380 429,709 113,158 303,909
Issued as reinvestment
of dividends ....... 18,369 12,613 7,908 2,644
Redeemed .............. (66,531) (58,817) (63,237) (5,481)
------------- ------------- ------------- -------------
Net increase .......... 1,108,218 383,505 57,829 301,072
============= ============= ============= =============
CLASS I:
Sold .................. 4,915,389 11,648,333 -- --
Issued as reinvestment
of dividends ....... 1,959,672 3,625,776 -- --
Redeemed .............. (1,435,150) (5,403,397) -- --
------------- ------------- ------------- -------------
Net increase/(decrease) 5,439,911 9,870,712 -- --
============= ============= ============= =============
CALIFORNIA CALIFORNIA INSURED
MUNICIPAL FUND INTERMEDIATE MUNICIPAL FUND
----------------------------- ------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
04/30/03 YEAR ENDED 04/30/03 YEAR ENDED
(UNAUDITED) 10/31/02 (UNAUDITED) 10/31/02
------------- ------------- ------------- -------------
AMOUNT
CLASS A:
Sold .................. $ 17,281,857 $ 46,521,657 $ 34,732,823 $ 30,316,417
Issued as reinvestment
of dividends ....... 5,187,200 8,704,805 1,036,329 1,473,900
Redeemed .............. (30,109,822) (60,342,125) (8,948,625) (15,007,454)
------------- ------------- ------------- -------------
Net increase/(decrease) $ (7,640,765) $ (5,115,663) $ 26,820,527 $ 16,782,863
============= ============= ============= =============
CLASS B:
Sold .................. $ 25,567,372 $ 88,441,692 $ 23,214,856 $ 47,458,095
Issued as reinvestment
of dividends ....... 5,126,005 7,084,580 1,340,236 1,696,630
Redeemed .............. (24,295,118) (38,114,967) (9,598,866) (12,326,728)
------------- ------------- ------------- -------------
Net increase .......... $ 6,398,259 $ 57,411,305 $ 14,956,226 $ 36,827,997
============= ============= ============= =============
CLASS C:
Sold .................. $ 4,104,076 $ 6,968,058 $ 5,142,887 $ 8,829,470
Issued as reinvestment
of dividends ....... 150,178 61,579 133,609 49,963
Redeemed .............. (656,953) (430,482) (1,036,845) (973,895)
------------- ------------- ------------- -------------
Net increase .......... $ 3,597,301 $ 6,599,155 $ 4,239,651 $ 7,905,538
============= ============= ============= =============
CLASS I:
Sold .................. -- -- -- --
Issued as reinvestment
of dividends ....... -- -- -- --
Redeemed .............. -- -- -- --
------------- ------------- ------------- -------------
Net increase/(decrease) -- -- -- --
============= ============= ============= =============
SHARES
CLASS A:
Sold .................. 1,524,115 4,149,251 3,120,417 2,758,904
Issued as reinvestment
of dividends ....... 457,910 775,673 93,232 134,962
Redeemed .............. (2,657,969) (5,383,659) (804,681) (1,385,138)
------------- ------------- ------------- -------------
Net increase/(decrease) (675,944) (458,735) 2,408,968 1,508,728
============= ============= ============= =============
CLASS B:
Sold .................. 2,256,529 7,878,763 2,090,162 4,327,891
Issued as reinvestment
of dividends ....... 452,614 631,064 120,664 155,576
Redeemed .............. (2,144,634) (3,404,740) (864,335) (1,125,084)
------------- ------------- ------------- -------------
Net increase .......... 564,509 5,105,087 1,346,491 3,358,383
============= ============= ============= =============
CLASS C:
Sold .................. 362,069 619,685 462,527 800,459
Issued as reinvestment
of dividends ....... 13,250 5,410 12,028 4,495
Redeemed .............. (57,924) (37,742) (93,475) (87,462)
------------- ------------- ------------- -------------
Net increase .......... 317,395 587,353 381,080 717,492
============= ============= ============= =============
CLASS I:
Sold .................. -- -- -- --
Issued as reinvestment
of dividends ....... -- -- -- --
Redeemed .............. -- -- -- --
------------- ------------- ------------- -------------
Net increase/(decrease) -- -- -- --
============= ============= ============= =============
See Notes to Financial Statements.
14-15 spread
FINANCIAL highlights
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INCOME FROM INVESTMENT OPERATIONS
------------------------------------------------
NET REALIZED
NET ASSET VALUE, AND UNREALIZED TOTAL FROM
BEGINNING OF NET INVESTMENT GAIN/(LOSS) ON INVESTMENT
PERIOD INCOME INVESTMENTS OPERATIONS
------------ -------------- --------------- ----------
REIT FUND
CLASS A
04/30/03(3) (unaudited) $10.00 $0.05(6) $0.41 $0.46
CLASS B
04/30/03(3) (unaudited) 10.00 0.05(6) 0.40 0.45
Class C
04/30/03(3) (unaudited) 10.00 0.05(6) 0.40 0.45
CLASS I
04/30/03(3) (unaudited) 10.00 0.10(6) 0.36 0.46
EQUITY INCOME FUND
CLASS A
04/30/03 (unaudited) $12.73 $0.18 $0.70 $0.88
10/31/02 14.85 0.40(6) (1.85) (1.45)
10/31/01 15.59 0.48(6) 0.37 0.85
10/31/00 14.60 0.49(6) 1.42 1.91
10/31/99 14.02 0.41 0.61 1.02
10/31/98 16.13 0.45(6) 0.21(7) 0.66
CLASS B
04/30/03 (unaudited) 12.65 0.12 0.69 0.81
10/31/02 14.78 0.27(6) (1.85) (1.58)
10/31/01 15.52 0.35(6) 0.38 0.73
10/31/00 14.53 0.37(6) 1.42 1.79
10/31/99 13.96 0.27 0.63 0.90
10/31/98 16.10 0.33(6) 0.19(7) 0.52
CLASS C
04/30/03 (unaudited) 12.62 0.12 0.69 0.81
10/31/02(4) 15.09 0.18(6) (2.43) (2.25)
CLASS I
04/30/03 (unaudited) 12.73 0.20 0.69 0.89
10/31/02 14.85 0.45(6) (1.85) (1.40)
10/31/01 15.59 0.54(6) 0.35 0.89
10/31/00(5) 14.47 0.11(6) 1.13 1.24
LESS DISTRIBUTIONS
----------------------------------------------------
DISTRIBUTIONS
DIVIDENDS FROM FROM
NET INVESTMENT NET REALIZED TOTAL NET ASSET VALUE,
INCOME CAPITAL GAINS DISTRIBUTIONS END OF PERIOD TOTAL RETURN(1)
-------------- ------------- ------------- ---------------- ---------------
REIT FUND
CLASS A
04/30/03(3) (unaudited) $-- $-- $-- $10.46 4.60%
CLASS B
04/30/03(3) (unaudited) -- -- -- 10.45 4.50%
Class C
04/30/03(3) (unaudited) -- -- -- 10.45 4.50%
CLASS I
04/30/03(3) (unaudited) -- -- -- 10.46 4.60%
EQUITY INCOME FUND
CLASS A
04/30/03 (unaudited) $(0.18) $-- $(0.18) $13.43 6.98%
10/31/02 (0.35) (0.32) (0.67) 12.73 (10.35)%
10/31/01 (0.46) (1.13) (1.59) 14.85 5.92%
10/31/00 (0.48) (0.44) (0.92) 15.59 13.73%
10/31/99 (0.40) (0.04) (0.44) 14.60 7.36%
10/31/98 (0.45) (2.32) (2.77) 14.02 4.03%
CLASS B
04/30/03 (unaudited) (0.12) -- (0.12) 13.34 6.41%
10/31/02 (0.23) (0.32) (0.55) 12.65 (11.20)%
10/31/01 (0.34) (1.13) (1.47) 14.78 5.09%
10/31/00 (0.36) (0.44) (0.80) 15.52 12.84%
10/31/99 (0.29) (0.04) (0.33) 14.53 6.46%
10/31/98 (0.34) (2.32) (2.66) 13.96 3.12%
CLASS C
04/30/03 (unaudited) (0.13) -- (0.13) 13.30 6.47%
10/31/02(4) (0.22) -- (0.22) 12.62 (15.07)%
CLASS I
04/30/03 (unaudited) (0.20) -- (0.20) 13.42 7.10%
10/31/02 (0.40) (0.32) (0.72) 12.73 (10.04)%
10/31/01 (0.50) (1.13) (1.63) 14.85 6.26%
10/31/00(5) (0.12) -- (0.12) 15.59 8.63%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS WITHOUT
FEE WAIVERS, EXPENSES
REIMBURSED AND/OR FEES
NET ASSETS, RATIO OF RATIO OF NET REDUCED BY CREDITS
END OF PERIOD OPERATING EXPENSES INVESTMENT INCOME TO PORTFOLIO ALLOWED BY THE
(IN 000'S) TO AVERAGE NET ASSETS AVERAGE NET ASSETS TURNOVER RATE CUSTODIAN(2)
------------- --------------------- -------------------- ------------- -----------------------
REIT FUND
CLASS A
04/30/03(3) (unaudited) $ 606 1.56%(8) 3.76%(8) 6% 1.56%(8)
CLASS B
04/30/03(3) (unaudited) 609 2.33%(8) 2.99%(8) 6% 2.33%(8)
Class C
04/30/03(3) (unaudited) 152 2.31%(8) 3.01%(8) 6% 2.31%(8)
CLASS I
04/30/03(3) (unaudited) 121,034 1.00%(8) 4.32%(8) 6% 1.00%(8)
EQUITY INCOME FUND
CLASS A
04/30/03 (unaudited) $217,118 0.98%(8) 2.76%(8) 7% 0.98%(8)
10/31/02 198,756 0.97% 2.77% 16% 0.97%
10/31/01 211,445 0.96% 3.17% 17% 0.97%
10/31/00 191,850 1.05% 3.39% 84% 1.05%
10/31/99 241,746 1.05% 2.61% 45% 1.05%
10/31/98 298,651 0.97% 3.09% 80% 0.97%
CLASS B
04/30/03 (unaudited) 84,198 1.94%(8) 1.80%(8) 7% 1.94%(8)
10/31/02 82,330 1.88% 1.86% 16% 1.88%
10/31/01 68,549 1.81% 2.32% 17% 1.82%
10/31/00 47,386 1.85% 2.59% 84% 1.85%
10/31/99 75,485 1.84% 1.82% 45% 1.84%
10/31/98 74,542 1.76% 2.30% 80% 1.76%
CLASS C
04/30/03 (unaudited) 2,128 1.80%(8) 1.94%(8) 7% 1.80%(8)
10/31/02(4) 1,780 1.80%(8) 1.94%(8) 16% 1.80%(8)
CLASS I
04/30/03 (unaudited) 366,102 0.63%(8) 3.11%(8) 7% 0.63%(8)
10/31/02 350,185 0.63% 3.11% 16% 0.63%
10/31/01 252,453 0.64% 3.49% 17% 0.65%
10/31/00(5) 96,436 0.72%(8) 3.72%(8) 84% 0.72%(8)
See Notes to Financial Highlights on page 32.
See Notes to Financial Statements.
16-17 spread
FINANCIAL highlights
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INCOME FROM INVESTMENT OPERATIONS
-------------------------------------------
NET
REALIZED
NET ASSET NET AND
VALUE, INVESTMENT UNREALIZED TOTAL FROM
BEGINNING OF INCOME/ GAIN/(LOSS) ON INVESTMENT
PERIOD (LOSS) INVESTMENTS OPERATIONS
------------ ----------- -------------- ----------
GROWTH & INCOME FUND
CLASS A
04/30/03 (unaudited) $18.44 $0.11(6) $ 0.75 $ 0.86
10/31/02 22.34 0.17(6) (3.68) (3.51)
10/31/01 27.11 0.10 (3.63) (3.53)
10/31/00 24.61 0.06 3.30 3.36
10/31/99 19.99 0.09(6) 4.62 4.71
10/31/98 21.01 0.11(6) 1.43 1.54
CLASS B
04/30/03 (unaudited) 17.72 0.01(6) 0.73 0.74
10/31/02 21.67 (0.04)(6) (3.55) (3.59)
10/31/01 26.49 (0.13) (3.52) (3.65)
10/31/00 24.24 (0.17) 3.25 3.08
10/31/99 19.77 (0.09)(6) 4.56 4.47
10/31/98 20.85 (0.07)(6) 1.46 1.39
CLASS C
04/30/03 (unaudited) 17.73 0.02(6) 0.73 0.75
10/31/02(4) 21.36 (0.01)(6) (3.62) (3.63)
CLASS I
04/30/03 (unaudited) 18.52 0.14(6) 0.76 0.90
10/31/02(4) 22.39 0.24(6) (3.70) (3.46)
10/31/01 27.16 0.18 (3.64) (3.46)
10/31/00 24.65 0.14 3.31 3.45
10/31/99 20.03 0.16(6) 4.61 4.77
10/31/98(9) 21.42 0.11(6) (1.43)(7) (1.32)
WEST COAST EQUITY FUND
CLASS A
04/30/03 (unaudited) $23.73 $0.04 $ 1.00 $ 1.04
10/31/02 28.89 0.02(6) (4.09) (4.07)
10/31/01 36.23 0.11 (2.35) (2.24)
10/31/00 32.04 0.10(6) 8.22 8.32
10/31/99 20.37 (0.05) 11.72 11.67
10/31/98 25.92 (0.02)(6) (0.76) (0.78)
CLASS B
04/30/03 (unaudited) 21.73 (0.08) 0.92 0.84
10/31/02 26.71 (0.23)(6) (3.73) (3.96)
10/31/01 34.12 (0.15) (2.19) (2.34)
10/31/00 30.63 (0.19)(6) 7.81 7.62
10/31/99 19.64 (0.25) 11.24 10.99
10/31/98 25.34 (0.20)(6) (0.73) (0.93)
CLASS C
04/30/03 (unaudited) 21.74 (0.06) 0.92 0.86
10/31/02(4) 27.59 (0.14)(6) (5.71) (5.85)
CLASS I
04/30/03 (unaudited) 23.83 0.08 1.01 1.09
10/31/02 29.00 0.12(6) (4.10) (3.98)
10/31/01 36.34 0.20 (2.34) (2.14)
10/31/00 32.04 0.22(6) 8.21 8.43
10/31/99(10) 29.72 0.01 2.31 2.32
LESS DISTRIBUTIONS
-----------------------------------------------------------
DIVIDENDS DISTRIBUTIONS NET ASSET
FROM NET FROM DISTRIBUTIONS VALUE,
INVESTMENT NET REALIZED FROM TOTAL END OF
INCOME CAPITAL GAINS CAPITAL DISTRIBUTIONS PERIOD TOTAL RETURN(1)
---------- ------------- ------------- ------------- --------- ---------------
GROWTH & INCOME FUND
CLASS A
04/30/03 (unaudited) $(0.18) $-- $-- $(0.18) $19.12 4.66%
10/31/02 (0.03) (0.36) -- (0.39) 18.44 (16.10)%
10/31/01 (0.07) (1.17) -- (1.24) 22.34 (13.40)%
10/31/00 (0.03) (0.83) -- (0.86) 27.11 13.95%
10/31/99 (0.09) (0.00)(11) -- (0.09) 24.61 23.57%
10/31/98 (0.09) (2.47) -- (2.56) 19.99 7.38%
CLASS B
04/30/03 (unaudited) -- -- -- -- 18.46 4.18%
10/31/02 (0.00)(11) (0.36) -- (0.36) 17.72 (16.94)%
10/31/01 -- (1.17) -- (1.17) 21.67 (14.20)%
10/31/00 -- (0.83) -- (0.83) 26.49 13.01%
10/31/99 -- -- -- -- 24.24 22.61%
10/31/98 (0.00)(11) (2.47) -- (2.47) 19.77 6.60%
CLASS C
04/30/03 (unaudited) (0.12) -- -- (0.12) 18.36 4.25%
10/31/02(4) -- -- -- -- 17.73 (17.00)%
CLASS I
04/30/03 (unaudited) (0.25) -- -- (0.25) 19.17 4.88%
10/31/02(4) (0.05) (0.36) -- (0.41) 18.52 (15.84)%
10/31/01 (0.14) (1.17) -- (1.31) 22.39 (13.12)%
10/31/00 (0.11) (0.83) -- (0.94) 27.16 14.35%
10/31/99 (0.15) (0.00)(11) -- (0.15) 24.65 23.87%
10/31/98(9) (0.07) -- -- (0.07) 20.03 (6.18)%
WEST COAST EQUITY FUND
CLASS A
04/30/03 (unaudited) $ -- $ -- $ -- $ -- $24.77 4.38%
10/31/02 (0.07) (1.02) -- (1.09) 23.73 (14.94)%
10/31/01 (0.03) (5.07) -- (5.10) 28.89 (6.55)%
10/31/00 -- (4.13) -- (4.13) 36.23 28.73%
10/31/99 -- -- -- -- 32.04 57.29%
10/31/98 -- (4.74) (0.03) (4.77) 20.37 (4.81)%
CLASS B
04/30/03 (unaudited) -- -- -- -- 22.57 3.87%
10/31/02 (0.00)(11) (1.02) -- (1.02) 21.73 (15.73)%
10/31/01 -- (5.07) -- (5.07) 26.71 (7.40)%
10/31/00 -- (4.13) -- (4.13) 34.12 27.67%
10/31/99 -- -- -- -- 30.63 55.96%
10/31/98 -- (4.74) (0.03) (4.77) 19.64 (5.63)%
CLASS C
04/30/03 (unaudited) -- -- -- -- 22.60 3.96%
10/31/02(4) -- -- -- -- 21.74 (21.20)%
CLASS I
04/30/03 (unaudited) -- -- -- -- 24.92 4.57%
10/31/02 (0.17) (1.02) -- (1.19) 23.83 (14.65)%
10/31/01 (0.13) (5.07) -- (5.20) 29.00 (6.22)%
10/31/00 -- (4.13) -- (4.13) 36.34 29.11%
10/31/99(10) -- -- -- -- 32.04 7.81%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS WITHOUT
FEE WAIVERS, EXPENSES
REIMBURSED AND/OR FEES
NET ASSETS, RATIO OF RATIO OF NET INVESTMENT REDUCED BY CREDITS
END OF PERIOD OPERATING EXPENSES INCOME/(LOSS) TO PORTFOLIO ALLOWED BY THE
(IN 000'S) TO AVERAGE NET ASSETS AVERAGE NET ASSETS TURNOVER RATE CUSTODIAN(2)
------------- --------------------- ----------------------- ------------- -----------------------
GROWTH & INCOME FUND
CLASS A
04/30/03 (unaudited) $487,303 0.96%(8) 1.20%(8) 4% 0.96%(8)
10/31/02 475,010 0.94% 0.79% 22% 0.94%
10/31/01 560,226 0.92% 0.40% 35% 0.92%
10/31/00 662,086 0.94% 0.21% 35% 0.94%
10/31/99 705,835 1.00% 0.37% 47% 1.00%
10/31/98 502,115 0.94% 0.52% 79% 0.94%
CLASS B
04/30/03 (unaudited) 112,282 2.01%(8) 0.15%(8) 4% 2.01%(8)
10/31/02 123,423 1.91% (0.18)% 22% 1.91%
10/31/01 186,247 1.82% (0.50)% 35% 1.82%
10/31/00 242,611 1.78% (0.63)% 35% 1.78%
10/31/99 233,216 1.76% (0.39)% 47% 1.84%
10/31/98 117,063 1.79% (0.33)% 79% 1.79%
CLASS C
04/30/03 (unaudited) 302 1.88%(8) 0.28%(8) 4% 1.88%(8)
10/31/02(4) 264 1.83%(8) (0.10)%(8) 22% 1.83%(8)
CLASS I
04/30/03 (unaudited) 638,401 0.60%(8) 1.56%(8) 4% 0.60%(8)
10/31/02(4) 671,191 0.60% 1.13% 22% 0.60%
10/31/01 768,550 0.58% 0.74% 35% 0.58%
10/31/00 725,241 0.60% 0.55% 35% 0.60%
10/31/99 461,629 0.67% 0.70% 47% 0.67%
10/31/98(9) 185,528 0.62%(8) 0.84%(8) 79% 0.62%(8)
WEST COAST EQUITY FUND
CLASS A
04/30/03 (unaudited) $395,241 1.08%(8) 0.31%(8) 7% 1.08%(8)
10/31/02 375,821 1.05% 0.07% 16% 1.05%
10/31/01 427,215 1.01% 0.38% 27% 1.01%
10/31/00 442,253 1.02% 0.27% 42% 1.02%
10/31/99 338,980 1.15% (0.21)% 41% 1.15%
10/31/98 243,126 1.10% (0.09)% 39% 1.10%
CLASS B
04/30/03 (unaudited) 98,474 2.10%(8) (0.71)%(8) 7% 2.10%(8)
10/31/02 102,208 2.00% (0.88)% 16% 2.00%
10/31/01 109,655 1.89% (0.50)% 27% 1.89%
10/31/00 116,672 1.84% (0.55)% 42% 1.84%
10/31/99 77,658 1.99% (1.05)% 41% 1.99%
10/31/98 47,106 1.95% (0.94)% 39% 1.95%
CLASS C
04/30/03 (unaudited) 1,647 1.97%(8) (0.58)%(8) 7% 1.97%(8)
10/31/02(4) 1,341 1.96%(8) (0.84)%(8) 16% 1.96%(8)
CLASS I
04/30/03 (unaudited) 218,349 0.71%(8) 0.68%(8) 7% 0.71%(8)
10/31/02 195,029 0.70% 0.42% 16% 0.70%
10/31/01 176,303 0.68% 0.71% 27% 0.68%
10/31/00 148,954 0.70% 0.59% 42% 0.70%
10/31/99(10) 6,102 0.81%(8) 0.13%(8) 41% 0.81%(8)
See Notes to Financial Highlights on page 32.
See Notes to Financial Statements.
18-19 spread
FINANCIAL highlights
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------- -------------------------------------------
NET
REALIZED
NET ASSET NET AND DIVIDENDS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED TOTAL FROM FROM NET FROM
BEGINNING OF INCOME/ GAIN/(LOSS) ON INVESTMENT INVESTMENT NET REALIZED TOTAL
PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS
------------ ----------- -------------- ---------- ---------- ------------- -------------
MID CAP STOCK FUND
CLASS A
04/30/03 (unaudited) $12.39 $0.01(6) $0.50 $0.51 $-- $-- $--
10/31/02 13.50 (0.01)(6) (0.60) (0.61) -- (0.50) (0.50)
10/31/01 12.58 (0.03)(6) 1.00 0.97 -- (0.05) (0.05)
10/31/00(12) 10.00 (0.02)(6) 2.60 2.58 -- -- --
CLASS B
04/30/03 (unaudited) 12.09 (0.06)(6) 0.50 0.44 -- -- --
10/31/02 13.31 (0.15)(6) (0.57) (0.72) -- (0.50) (0.50)
10/31/01 12.51 (0.15)(6) 1.00 0.85 -- (0.05) (0.05)
10/31/00(12) 10.00 (0.08)(6) 2.59 2.51 -- -- --
CLASS C
04/30/03 (unaudited) 12.10 (0.06)(6) 0.50 0.44 -- -- --
10/31/02(4) 13.60 (0.10)(6) (1.40) (1.50) -- -- --
CLASS I
04/30/03 (unaudited) 12.51 0.03(6) 0.52 0.55 (0.04) -- (0.04)
10/31/02 13.59 0.04(6) (0.60) (0.56) (0.02) (0.50) (0.52)
10/31/01 12.62 0.04(6) 1.00 1.04 (0.02) (0.05) (0.07)
10/31/00(12) 10.00 0.02(6) 2.60 2.62 -- -- --
GROWTH FUND
CLASS A
04/30/03 (unaudited) $11.47 $(0.04) $ 0.42 $0.38 $-- $-- $--
10/31/02 15.23 (0.10)(6) (3.66) (3.76) -- -- --
10/31/01 32.78 (0.09)(6) (13.13) (13.22) (0.20) (4.13) (4.33)
10/31/00 29.71 (0.14)(6) 7.04 6.90 -- (3.83) (3.83)
10/31/99 17.64 (0.21)(6) 14.11 13.90 -- (1.83) (1.83)
10/31/98(13) 18.46 (0.07)(6) (0.75) (0.82) -- -- --
06/30/98 14.90 (0.15)(6) 4.99 4.84 -- (1.28) (1.28)
CLASS B
04/30/03 (unaudited) 10.55 (0.09) 0.39 0.30 -- -- --
10/31/02 14.13 (0.21)(6) (3.37) (3.58) -- -- --
10/31/01 30.78 (0.24)(6) (12.24) (12.48) (0.04) (4.13) (4.17)
10/31/00 28.29 (0.38)(6) 6.70 6.32 -- (3.83) (3.83)
10/31/99 16.99 (0.38)(6) 13.51 13.13 -- (1.83) (1.83)
10/31/98(13) 17.82 (0.12)(6) (0.71) (0.83) -- -- --
06/30/98 14.53 (0.25)(6) 4.82 4.57 -- (1.28) (1.28)
CLASS C
04/30/03 (unaudited) 10.56 (0.05) 0.38 0.33 -- -- --
10/31/02(4) 13.48 (0.11)(6) (2.81) (2.92) -- -- --
CLASS I
04/30/03 (unaudited) 11.74 0.00(11) 0.43 0.43 -- -- --
10/31/02 15.48 (0.01)(6) (3.73) (3.74) -- -- --
10/31/01 33.23 0.02(6) (13.31) (13.29) (0.33) (4.13) (4.46)
10/31/00 29.96 0.01(6) 7.09 7.10 -- (3.83) (3.83)
10/31/99 17.76 (0.11)(6) 14.14 14.03 -- (1.83) (1.83)
10/31/98(13) 18.56 (0.05)(6) (0.75) (0.80) -- -- --
06/30/98 14.94 (0.10)(6) 5.00 4.90 -- (1.28) (1.28)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------
RATIO OF
OPERATING
EXPENSES TO
AVERAGE
NET ASSETS
WITHOUT FEE
WAIVERS, EXPENSES
RATIO OF RATIO OF REIMBURSED AND/OR
NET ASSET OPERATING NET INVESTMENT FEES REDUCED
VALUE, NET ASSETS, EXPENSES TO INCOME/(LOSS) BY CREDITS
END OF TOTAL END OF PERIOD AVERAGE TO AVERAGE PORTFOLIO ALLOWED BY THE
PERIOD RETURN(1) (IN 000'S) NET ASSETS NET ASSETS TURNOVER RATE CUSTODIAN(2)
--------- --------- ------------- ---------- ---------- ------------- -----------------
MID CAP STOCK FUND
CLASS A
04/30/03 (unaudited) $12.90 4.12% $ 30,190 1.19%(8) 0.10%(8) 14% 1.19%(8)
10/31/02 12.39 (4.86)% 28,248 1.25% (0.10)% 27% 1.25%
10/31/01 13.50 7.71% 6,165 1.36% (0.25)% 33% 1.36%
10/31/00(12) 12.58 25.80% 2,451 1.40%(8) (0.29)%(8) 9% 1.40%(8)
CLASS B
04/30/03 (unaudited) 12.53 3.64% 13,838 2.32%(8) (1.03)%(8) 14% 2.32%(8)
10/31/02 12.09 (5.79)% 13,229 2.26% (1.11)% 27% 2.26%
10/31/01 13.31 6.79% 10,271 2.17% (1.06)% 33% 2.17%
10/31/00(12) 12.51 25.10% 3,778 2.16%(8) (1.05)%(8) 9% 2.16%(8)
CLASS C
04/30/03 (unaudited) 12.54 3.64% 188 2.18%(8) (0.89)%(8) 14% 2.18%(8)
10/31/02(4) 12.10 (11.03)% 55 2.24%(8) (1.09)%(8) 27% 2.24%(8)
CLASS I
04/30/03 (unaudited) 13.02 4.39% 249,126 0.82%(8) 0.47%(8) 14% 0.82%(8)
10/31/02 12.51 (4.44)% 231,409 0.83% 0.32% 27% 0.83%
10/31/01 13.59 8.29% 220,052 0.81% 0.30% 33% 0.81%
10/31/00(12) 12.62 26.20% 176,653 0.88%(8) 0.23%(8) 9% 0.88%(8)
GROWTH FUND
CLASS A
04/30/03 (unaudited) $11.85 3.31% $ 96,872 1.72%(8) (0.73)%(8) 35% 1.72%(8)
10/31/02 11.47 (24.69)% 94,848 1.69% (0.74)% 170% 1.69%
10/31/01 15.23 (45.77)% 151,893 1.52% (0.43)% 99% 1.52%
10/31/00 32.78 24.21% 341,777 1.30% (0.39)% 92% 1.36%
10/31/99 29.71 84.96% 240,363 1.27% (0.84)% 119% 1.46%
10/31/98(13) 17.64 (4.44)% 104,775 1.69%(8) (1.21)%(8) 24% 1.69%(8)
06/30/98 18.46 35.43% 112,153 1.66% (0.91)% 153% 1.66%
CLASS B
04/30/03 (unaudited) 10.85 2.84% 118,932 2.65%(8) (1.66)%(8) 35% 2.65%(8)
10/31/02 10.55 (25.34)% 128,007 2.54% (1.59)% 170% 2.54%
10/31/01 14.13 (46.19)% 220,108 2.31% (1.22)% 99% 2.31%
10/31/00 30.78 23.28% 481,935 2.05% (1.14)% 92% 2.11%
10/31/99 28.29 83.57% 226,507 2.03% (1.60)% 119% 2.25%
10/31/98(13) 16.99 (4.66)% 39,379 2.54%(8) (2.06)%(8) 24% 2.54%(8)
06/30/98 17.82 34.43% 38,390 2.46% (1.70)% 153% 2.46%
CLASS C
04/30/03 (unaudited) 10.89 3.13% 349 2.20%(8) (1.21)%(8) 35% 2.20%(8)
10/31/02(4) 10.56 (21.66)% 199 2.38%(8) (1.43)%(8) 170% 2.38%(8)
CLASS I
04/30/03 (unaudited) 12.17 3.66% 463,173 0.96%(8) 0.03%(8) 35% 0.96%(8)
10/31/02 11.74 (24.16)% 357,296 1.03% (0.08)% 170% 1.03%
10/31/01 15.48 (45.50)% 203,646 1.00% 0.09% 99% 1.00%
10/31/00 33.23 24.73% 399,028 0.90% 0.01% 92% 0.96%
10/31/99 29.96 85.13% 386,367 0.87% (0.44)% 119% 1.06%
10/31/98(13) 17.76 (4.31)% 119,351 1.26%(8) (0.78)%(8) 24% 1.26%(8)
06/30/98 18.56 35.75% 115,729 1.36% (0.61)% 153% 1.36%
See Notes to Financial Highlights on page 32.
See Notes to Financial Statements.
20-21
FINANCIAL highlights
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------- -------------------------------------------
NET
REALIZED
NET ASSET NET AND DIVIDENDS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED TOTAL FROM FROM NET FROM
BEGINNING OF INCOME/ GAIN/(LOSS) ON INVESTMENT INVESTMENT NET REALIZED TOTAL
PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS
------------ ----------- -------------- ---------- ---------- ------------- -------------
SMALL CAP STOCK FUND
CLASS A
04/30/03 (unaudited) $ 8.21 $(0.03) $0.56 $0.53 $-- $-- $--
10/31/02 13.60 (0.14)(6) (4.28) (4.42) -- (0.97) (0.97)
10/31/01 26.67 (0.20) (9.56) (9.76) -- (3.31) (3.31)
10/31/00 19.61 (0.27)(6) 10.01 9.74 -- (2.68) (2.68)
10/31/99 16.25 (0.20)(6) 6.36 6.16 -- (2.80) (2.80)
10/31/98(13) 19.49 (0.08)(6) (3.16) (3.24) -- -- --
06/30/98 18.28 (0.22)(6) 2.50 2.28 -- (1.07) (1.07)
CLASS B
04/30/03 (unaudited) 7.40 (0.08) 0.51 0.43 -- -- --
10/31/02 12.46 (0.23)(6) (3.86) (4.09) -- (0.97) (0.97)
10/31/01 24.93 (0.32) (8.84) (9.16) -- (3.31) (3.31)
10/31/00 18.61 (0.47)(6) 9.47 9.00 -- (2.68) (2.68)
10/31/99 15.67 (0.34)(6) 6.08 5.74 -- (2.80) (2.80)
10/31/98(13) 18.86 (0.13)(6) (3.06) (3.19) -- -- --
06/30/98 17.85 (0.36)(6) 2.44 2.08 -- (1.07) (1.07)
CLASS C
04/30/03 (unaudited) 7.42 (0.04) 0.50 0.46 -- -- --
10/31/02(4) 11.51 (0.10)(6) (3.99) (4.09) -- -- --
CLASS I
04/30/03 (unaudited) 8.35 0.00 (11) 0.58 0.58 -- -- --
10/31/02 13.74 (0.06)(6) (4.36) (4.42) -- (0.97) (0.97)
10/31/01 26.77 (0.06) (9.66) (9.72) -- (3.31) (3.31)
10/31/00(14) 24.98 (0.15)(6) 1.94 1.79 -- -- --
INTERNATIONAL GROWTH FUND
CLASS A
04/30/03 (unaudited) $ 6.76 $0.01 $(0.00)(7)(11) $0.01 $(0.04) $-- $(0.04)
10/31/02 7.61 (0.02)(6) (0.75) (0.77) (0.08) -- (0.08)
10/31/01 10.97 (0.02) (2.67) (2.69) (0.01) (0.66) (0.67)
10/31/00 11.14 (0.03)(6) 0.00(11) (0.03) (0.14) (0.00)(11) (0.14)
10/31/99 8.86 0.01(6) 2.65 2.66 (0.27) (0.11) (0.38)
10/31/98(13) 10.20 (0.02)(6) (1.32) (1.34) -- -- --
06/30/98 11.85 0.05(6) (0.67) (0.62) (0.53) (0.50) (1.03)
CLASS B
04/30/03 (unaudited) 6.51 (0.02) (0.01)(7) (0.03) -- -- --
10/31/02 7.35 (0.09)(6) (0.73) (0.82) (0.02) -- (0.02)
10/31/01 10.70 (0.10) (2.58) (2.68) (0.01) (0.66) (0.67)
10/31/00 10.87 (0.12)(6) 0.02 (0.10) (0.07) (0.00)(11) (0.07)
10/31/99 8.72 (0.08)(6) 2.60 2.52 (0.26) (0.11) (0.37)
10/31/98(13) 10.07 (0.05)(6) (1.30) (1.35) -- -- --
06/30/98 11.70 (0.04)(6) (0.64) (0.68) (0.45) (0.50) (0.95)
CLASS C
04/30/03 (unaudited) 6.53 (0.01) (0.01)(7) (0.02) (0.04) -- (0.04)
10/31/02(4) 7.55 (0.05)(6) (0.96) (1.01) (0.01) -- (0.01)
CLASS I
04/30/03 (unaudited) 6.80 0.04 (0.00)(7)(11) 0.04 (0.09) -- (0.09)
10/31/02 7.69 0.04(6) (0.75) (0.71) (0.18) -- (0.18)
10/31/01 11.00 0.04 (2.68) (2.64) (0.01) (0.66) (0.67)
10/31/00 11.16 0.05(6) 0.00(11) 0.05 (0.21) (0.00)(11) (0.21)
10/31/99 8.83 0.07(6) 2.65 2.72 (0.28) (0.11) (0.39)
10/31/98(13) 10.16 0.00(6)(11) (1.33) (1.33) -- -- --
06/30/98 11.82 0.09(6) (0.69) (0.60) (0.56) (0.50) (1.06)
NET ASSET
VALUE,
REDEMPTION END OF
FEES PERIOD TOTAL RETURN(1)
---------- --------- ---------------
SMALL CAP STOCK FUND
CLASS A
04/30/03 (unaudited) $-- $ 8.74 6.46%
10/31/02 -- 8.21 (35.71)%
10/31/01 -- 13.60 (40.84)%
10/31/00 -- 26.67 53.57%
10/31/99 -- 19.61 42.60%
10/31/98(13) -- 16.25 (16.62)%
06/30/98 -- 19.49 12.95%
CLASS B
04/30/03 (unaudited) -- 7.83 5.81%
10/31/02 -- 7.40 (36.36)%
10/31/01 -- 12.46 (41.35)%
10/31/00 -- 24.93 52.34%
10/31/99 -- 18.61 41.32%
10/31/98(13) -- 15.67 (16.87)%
06/30/98 -- 18.86 12.05%
CLASS C
04/30/03 (unaudited) -- 7.88 6.20%
10/31/02(4) -- 7.42 (35.53)%
CLASS I
04/30/03 (unaudited) -- 8.93 6.95%
10/31/02 -- 8.35 (35.32)%
10/31/01 -- 13.74 (40.49)%
10/31/00(14) -- 26.77 7.21%
INTERNATIONAL GROWTH FUND
CLASS A
04/30/03 (unaudited) $0.01 $ 6.74 0.33%
10/31/02 0.00(11) 6.76 (10.36)%
10/31/01 -- 7.61 (25.99)%
10/31/00 -- 10.97 (0.43)%
10/31/99 -- 11.14 31.15%
10/31/98(13) -- 8.86 (13.14)%
06/30/98 -- 10.20 (4.19)%
CLASS B
04/30/03 (unaudited) 0.01 6.49 (0.31)%
10/31/02 0.00(11) 6.51 (11.23)%
10/31/01 -- 7.35 (26.68)%
10/31/00 -- 10.70 (1.03)%
10/31/99 -- 10.87 29.87%
10/31/98(13) -- 8.72 (13.41)%
06/30/98 -- 10.07 (4.95)%
CLASS C
04/30/03 (unaudited) 0.01 6.48 (0.16)%
10/31/02(4) 0.00(11) 6.53 (13.34)%
CLASS I
04/30/03 (unaudited) 0.01 6.76 0.68%
10/31/02 0.00(11) 6.80 (9.61)%
10/31/01 -- 7.69 (25.53)%
10/31/00 -- 11.00 0.26%
10/31/99 -- 11.16 31.98%
10/31/98(13) -- 8.83 (13.09)%
06/30/98 -- 10.16 (3.98)%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS WITHOUT
FEE WAIVERS, EXPENSES
REIMBURSED AND/OR FEES
NET ASSETS, RATIO OF RATIO OF NET INVESTMENT REDUCED BY CREDITS
END OF PERIOD OPERATING EXPENSES INCOME/(LOSS) TO PORTFOLIO ALLOWED BY THE
(IN 000'S) TO AVERAGE NET ASSETS AVERAGE NET ASSETS TURNOVER RATE CUSTODIAN(2)
------------- --------------------- ----------------------- ------------- -----------------------
SMALL CAP STOCK FUND
CLASS A
04/30/03 (unaudited) $ 49,254 1.80%(8) (0.74)%(8) 17% 1.80%(8)
10/31/02 42,984 1.68% (1.20)% 21% 1.68%
10/31/01 66,262 1.52% (1.03)% 46% 1.52%
10/31/00 132,274 1.42% (0.96)% 49% 1.43%
10/31/99 92,130 1.78% (1.16)% 45% 1.94%
10/31/98(13) 88,502 1.88%(8) (1.43)%(8) 20% 1.89%(8)
06/30/98 118,473 1.66% (1.10)% 112% 1.66%
CLASS B
04/30/03 (unaudited) 12,257 3.06%(8) (2.00)%(8) 17% 3.06%(8)
10/31/02 14,238 2.64% (2.16)% 21% 2.64%
10/31/01 29,346 2.42% (1.93)% 46% 2.42%
10/31/00 54,407 2.24% (1.78)% 49% 2.25%
10/31/99 28,969 2.70% (2.08)% 45% 2.86%
10/31/98(13) 22,172 2.84%(8) (2.39)%(8) 20% 2.85%(8)
06/30/98 28,540 2.47% (1.92)% 112% 2.47%
CLASS C
04/30/03 (unaudited) 88 2.38%(8) (1.31)%(8) 17% 2.38%(8)
10/31/02(4) 69 2.25%(8) (1.77)%(8) 21% 2.25%(8)
CLASS I
04/30/03 (unaudited) 183,651 1.01%(8) 0.05%(8) 17% 1.01%(8)
10/31/02 123,620 1.00% (0.52)% 21% 1.00%
10/31/01 134,462 0.97% (0.48)% 46% 0.97%
10/31/00(14) 150,073 0.98%(8) (0.52)%(8) 49% 0.99%(8)
INTERNATIONAL GROWTH FUND
CLASS A
04/30/03 (unaudited) $ 21,775 1.80%(8) 0.45%(8) 9% 1.80%(8)
10/31/02 21,317 1.93% (0.20)% 25% 1.93%
10/31/01 16,636 1.93% (0.25)% 27% 1.93%
10/31/00 28,997 1.78% (0.25)% 37% 1.78%
10/31/99 28,618 1.88% 0.13% 164% 1.89%
10/31/98(13) 30,117 1.86%(8) (0.50)%(8) 41% 1.86%(8)
06/30/98 38,281 1.67% 0.50% 118% 1.67%
CLASS B
04/30/03 (unaudited) 3,720 3.09%(8) (0.84)%(8) 9% 3.09%(8)
10/31/02 4,732 2.91% (1.18)% 25% 2.91%
10/31/01 7,172 2.74% (1.06)% 27% 2.74%
10/31/00 12,272 2.48% (0.95)% 37% 2.48%
10/31/99 11,101 2.80% (0.79)% 164% 2.81%
10/31/98(13) 3,552 2.97%(8) (1.61)%(8) 41% 2.97%(8)
06/30/98 4,294 2.94% (0.35)% 118% 2.94%
CLASS C
04/30/03 (unaudited) 59 2.65%(8) (0.40)%(8) 9% 2.65%(8)
10/31/02(4) 53 2.67%(8) (0.94)%(8) 25% 2.67%(8)
CLASS I
04/30/03 (unaudited) 204,453 1.12%(8) 1.13%(8) 9% 1.12%(8)
10/31/02 185,137 1.19% 0.54% 25% 1.19%
10/31/01 124,886 1.18% 0.50% 27% 1.18%
10/31/00 145,176 1.14% 0.39% 37% 1.14%
10/31/99 163,610 1.28% 0.73% 164% 1.29%
10/31/98(13) 98,554 1.32%(8) 0.04%(8) 41% 1.32%(8)
06/30/98 108,521 1.36% 0.81% 118% 1.36%
See Notes to Financial Highlights on page 32.
See Notes to Financial Statements.
22-23
FINANCIAL highlights
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------- ------------------------------------------
NET
REALIZED
NET ASSET AND DIVIDENDS
VALUE, NET UNREALIZED TOTAL FROM FROM NET DISTRIBUTIONS
BEGINNING OF INVESTMENT GAIN/(LOSS) ON INVESTMENT INVESTMENT FROM TOTAL
PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL DISTRIBUTIONS
------------ ----------- -------------- ---------- ---------- ------------- -------------
SHORT TERM INCOME FUND
CLASS A
04/30/03 (unaudited) $2.34 $0.05 $0.07 $0.12 $(0.05) $-- $(0.05)
10/31/02 2.41 0.12 (0.07) 0.05 (0.12) -- (0.12)
10/31/01 2.29 0.13 0.12 0.25 (0.13) -- (0.13)
10/31/00 2.29 0.13 (0.00)(11) 0.13 (0.13) -- (0.13)
10/31/99 2.35 0.13(6) (0.06) 0.07 (0.13) -- (0.13)
10/31/98(13) 2.32 0.04 0.03 0.07 (0.04) -- (0.04)
06/30/98 2.32 0.13 0.00(11) 0.13 (0.13) (0.00)(11) (0.13)
CLASS B
04/30/03 (unaudited) 2.34 0.04 0.07 0.11 (0.04) -- (0.04)
10/31/02 2.41 0.10 (0.07) 0.03 (0.10) -- (0.10)
10/31/01 2.29 0.12 0.12 0.24 (0.12) -- (0.12)
10/31/00 2.29 0.11 (0.00)(11) 0.11 (0.11) -- (0.11)
10/31/99 2.35 0.10(6) (0.06) 0.04 (0.10) -- (0.10)
10/31/98(13) 2.32 0.04 0.03 0.07 (0.04) -- (0.04)
06/30/98 2.32 0.12 0.00(11) 0.12 (0.12) (0.00)(11) (0.12)
CLASS C
04/30/03 (unaudited) 2.34 0.04 0.07 0.11 (0.04) -- (0.04)
10/31/02(4) 2.37 0.07 (0.03) 0.04 (0.07) -- (0.07)
CLASS I
04/30/03 (unaudited) 2.34 0.06 0.07 0.13 (0.06) -- (0.06)
10/31/02 2.41 0.13 (0.07) 0.06 (0.13) -- (0.13)
10/31/01 2.29 0.15 0.12 0.27 (0.15) -- (0.15)
10/31/00 2.29 0.14 (0.00)(11) 0.14 (0.14) -- (0.14)
10/31/99 2.35 0.13(6) (0.06) 0.07 (0.13) -- (0.13)
10/31/98(13) 2.32 0.04 0.03 0.07 (0.04) -- (0.04)
06/30/98 2.32 0.14 0.00(11) 0.14 (0.14) (0.00)(11) (0.14)
U.S. GOVERNMENT
SECURITIES FUND
CLASS A
04/30/03 (unaudited) $11.19 $0.22(6) $0.01 $0.23 $(0.27) $-- $(0.27)
10/31/02 11.20 0.54 0.04 0.58 (0.59) -- (0.59)
10/31/01 10.55 0.62 0.65 1.27 (0.62) -- (0.62)
10/31/00 10.51 0.63 0.04 0.67 (0.63) -- (0.63)
10/31/99 10.98 0.62 (0.47) 0.15 (0.62) -- (0.62)
10/31/98(15) 10.84 0.54 0.14 0.68 (0.54) -- (0.54)
12/31/97 10.46 0.62 0.38 1.00 (0.62) -- (0.62)
CLASS B
04/30/03 (unaudited) 11.18 0.18(6) 0.01 0.19 (0.23) -- (0.23)
10/31/02 11.19 0.46 0.03 0.50 (0.51) -- (0.51)
10/31/01 10.54 0.54 0.65 1.19 (0.54) -- (0.54)
10/31/00 10.50 0.56 0.04 0.60 (0.56) -- (0.56)
10/31/99 10.97 0.54 (0.48) 0.06 (0.53) -- (0.53)
10/31/98(15) 10.84 0.47 0.12 0.59 (0.46) -- (0.46)
12/31/97 10.46 0.54 0.38 0.92 (0.54) -- (0.54)
CLASS C
04/30/03 (unaudited) 11.18 0.18(6) 0.01 0.19 (0.23) -- (0.23)
10/31/02(4) 11.00 0.33 0.18 0.51 (0.33) -- (0.33)
CLASS I
04/30/03 (unaudited) 11.19 0.24(6) 0.01 0.25 (0.29) -- (0.29)
10/31/02 11.20 0.58 0.04 0.62 (0.63) -- (0.63)
10/31/01 10.55 0.66 0.65 1.31 (0.66) -- (0.66)
10/31/00 10.51 0.67 0.04 0.71 (0.67) -- (0.67)
10/31/99 10.99 0.66 (0.51) 0.15 (0.63) -- (0.63)
10/31/98(9) 10.86 0.42 0.12 0.54 (0.41) -- (0.41)
NET ASSET
VALUE,
END OF
PERIOD TOTAL RETURN(1)
--------- ---------------
SHORT TERM INCOME FUND
CLASS A
04/30/03 (unaudited) $2.41 5.34%
10/31/02 2.34 2.18%
10/31/01 2.41 11.31%
10/31/00 2.29 (5.70)%
10/31/99 2.29 2.84%
10/31/98(13) 2.35 3.11%
06/30/98 2.32 5.91%
CLASS B
04/30/03 (unaudited) 2.41 4.95%
10/31/02 2.34 1.41%
10/31/01 2.41 10.52%
10/31/00 2.29 5.12%
10/31/99 2.29 1.79%
10/31/98(13) 2.35 2.85%
06/30/98 2.32 5.13%
CLASS C
04/30/03 (unaudited) 2.41 4.95%
10/31/02(4) 2.34 1.61%
CLASS I
04/30/03 (unaudited) 2.41 5.47%
10/31/02 2.34 2.53%
10/31/01 2.41 11.93%
10/31/00 2.29 6.43%
10/31/99 2.29 2.93%
10/31/98(13) 2.35 3.20%
06/30/98 2.32 6.17%
U.S. GOVERNMENT
SECURITIES FUND
CLASS A
04/30/03 (unaudited) $11.15 2.09%
10/31/02 11.19 5.37%
10/31/01 11.20 12.39%
10/31/00 10.55 6.65%
10/31/99 10.51 1.38%
10/31/98(15) 10.98 6.38%
12/31/97 10.84 9.92%
CLASS B
04/30/03 (unaudited) 11.14 1.72%
10/31/02 11.18 4.62%
10/31/01 11.19 11.59%
10/31/00 10.54 5.91%
10/31/99 10.50 0.53%
10/31/98(15) 10.97 5.54%
12/31/97 10.84 9.03%
CLASS C
04/30/03 (unaudited) 11.14 1.73%
10/31/02(4) 11.18 4.74%
CLASS I
04/30/03 (unaudited) 11.15 2.28%
10/31/02 11.19 5.77%
10/31/01 11.20 12.81%
10/31/00 10.55 7.07%
10/31/99 10.51 1.43%
10/31/98(9) 10.99 5.00%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS WITHOUT
RATIO OF RATIO OF OPERATING RATIO OF FEE WAIVERS, EXPENSES
OPERATING EXPENSES TO NET INVESTMENT REIMBURSED AND/OR FEES
NET ASSETS, EXPENSES TO AVERAGE NET ASSETS INCOME TO REDUCED BY CREDITS
END OF PERIOD AVERAGE INCLUDING INTEREST AVERAGE PORTFOLIO ALLOWED BY THE
(IN 000'S) NET ASSETS EXPENSE NET ASSETS TURNOVER RATE CUSTODIAN(2)
------------- ----------- ------------------ -------------- ------------- ----------------------
SHORT TERM INCOME FUND
CLASS A
04/30/03 (unaudited) $ 39,058 0.86%(8) 0.86%(8) 4.21%(8) 23% 1.02%(8)
10/31/02 28,106 0.96% 0.96% 5.03% 28% 1.09%
10/31/01 18,929 0.83% 0.83% 5.63% 27% 1.15%
10/31/00 20,224 0.99% 0.99% 5.55% 14% 1.29%
10/31/99 27,059 0.82% 0.82% 5.22% 85% 1.16%
10/31/98(13) 32,748 0.82%(8) 0.82%(8) 5.44%(8) 19% 1.40%(8)
06/30/98 35,551 0.86% 0.86% 5.71% 138% 1.32%
CLASS B
04/30/03 (unaudited) 38,313 0.86%(8) 0.86%(8) 3.46%(8) 23% 1.73%(8)
10/31/02 24,621 1.71% 1.71% 4.28% 28% 1.77%
10/31/01 6,595 1.54% 1.54% 4.92% 27% 1.86%
10/31/00 3,461 1.55% 1.55% 4.99% 14% 1.85%
10/31/99 4,597 1.60% 1.60% 4.44% 85% 1.94%
10/31/98(13) 3,747 1.57%(8) 1.57%(8) 4.69%(8) 19% 2.18%(8)
06/30/98 3,459 1.61% 1.61% 4.96% 138% 2.07%
CLASS C
04/30/03 (unaudited) 12,336 1.61%(8) 1.61%(8) 3.46%(8) 23% 1.67%(8)
10/31/02(4) 5,743 1.68%(8) 1.68%(8) 4.31%(8) 28% 1.68%(8)
CLASS I
04/30/03 (unaudited) 103,259 0.61%(8) 0.61%(8) 4.46%(8) 23% 0.61%(8)
10/31/02 89,210 0.61% 0.61% 5.38% 28% 0.61%
10/31/01 110,710 0.27% 0.27% 6.19% 27% 0.59%
10/31/00 93,741 0.30% 0.30% 6.24% 14% 0.60%
10/31/99 138,955 0.37% 0.37% 5.67% 85% 0.71%
10/31/98(13) 1,631 0.57%(8) 0.57%(8) 5.69%(8) 19% 0.96%(8)
06/30/98 3,103 0.53% 0.53% 6.03% 138% 1.00%
U.S. GOVERNMENT
SECURITIES FUND
CLASS A
04/30/03 (unaudited) $209,572 0.94%(8) 0.94%(8) 3.97%(8) 26% 0.94%(8)
10/31/02 196,222 0.96% 0.96% 4.91% 48% 0.96%
10/31/01 174,047 0.95% 0.95% 5.71% 30% 0.95%
10/31/00 168,728 0.96% 0.96% 6.12% 13% 0.99%
10/31/99 221,592 0.96% 0.96% 5.76% 55% 1.04%
10/31/98(15) 266,334 0.92%(8) 1.36%(8) 5.99%(8) 12% 1.45%(8)
12/31/97 107,054 1.05% 1.05% 5.92% 6% 1.05%
CLASS B
04/30/03 (unaudited) 332,801 1.66%(8) 1.66%(8) 3.25%(8) 26% 1.66%(8)
10/31/02 271,440 1.68% 1.68% 4.19% 48% 1.68%
10/31/01 128,155 1.67% 1.67% 4.99% 30% 1.67%
10/31/00 55,071 1.66% 1.66% 5.42% 13% 1.69%
10/31/99 72,751 1.70% 1.70% 5.02% 55% 1.78%
10/31/98(15) 28,747 1.67%(8) 2.12%(8) 5.24%(8) 12% 2.22%(8)
12/31/97 3,352 1.84% 1.84% 5.08% 6% 1.84%
CLASS C
04/30/03 (unaudited) 19,974 1.63%(8) 1.63%(8) 3.28%(8) 26% 1.63%(8)
10/31/02(4) 11,634 1.63%(8) 1.63%(8) 4.24%(8) 48% 1.63%(8)
CLASS I
04/30/03 (unaudited) 451,148 0.57%(8) 0.57%(8) 4.34%(8) 26% 0.57%(8)
10/31/02 365,912 0.58% 0.58% 5.29% 48% 0.58%
10/31/01 301,656 0.57% 0.57% 6.09% 30% 0.57%
10/31/00 247,204 0.56% 0.56% 6.52% 13% 0.59%
10/31/99 184,708 0.60% 0.60% 6.12% 55% 0.68%
10/31/98(9) 39,939 0.66%(8) 1.10%(8) 6.25%(8) 12% 1.11%(8)
See Notes to Financial Highlights on page 32.
See Notes to Financial Statements.
24-25
FINANCIAL highlights
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------------- ------------------------------------------
NET
REALIZED
NET ASSET AND DIVIDENDS DISTRIBUTIONS
VALUE, NET UNREALIZED TOTAL FROM FROM NET FROM
BEGINNING OF INVESTMENT GAIN/(LOSS) ON INVESTMENT INVESTMENT NET REALIZED TOTAL
PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS
------------ ---------- -------------- ---------- ---------- ------------- -------------
INCOME FUND
CLASS A
04/30/03 (unaudited) $9.02 $0.27 $0.44 $0.71 $(0.29) $-- $(0.29)
10/31/02 9.32 0.60 (0.28) 0.32 (0.62) -- (0.62)
10/31/01 8.90 0.62 0.43 1.05 (0.63) -- (0.63)
10/31/00 8.99 0.62 (0.09) 0.53 (0.62) -- (0.62)
10/31/99 9.44 0.63 (0.45) 0.18 (0.63) -- (0.63)
10/31/98(15) 9.48 0.53 (0.04)(7) 0.49 (0.53) -- (0.53)
12/31/97 9.15 0.60 0.33 0.93 (0.60) -- (0.60)
CLASS B
04/30/03 (unaudited) 9.04 0.24 0.45 0.69 (0.26) -- (0.26)
10/31/02 9.35 0.54 (0.29) 0.25 (0.56) -- (0.56)
10/31/01 8.92 0.56 0.44 1.00 (0.57) -- (0.57)
10/31/00 9.00 0.56 (0.08) 0.48 (0.56) -- (0.56)
10/31/99 9.45 0.56 (0.45) 0.11 (0.56) -- (0.56)
10/31/98(15) 9.49 0.46 (0.04)(7) 0.42 (0.46) -- (0.46)
12/31/97 9.17 0.53 0.32 0.85 (0.53) -- (0.53)
CLASS C
04/30/03 (unaudited) 9.04 0.24 0.45 0.69 (0.26) -- (0.26)
10/31/02(4) 9.21 0.37 (0.17) 0.20 (0.37) -- (0.37)
CLASS I
04/30/03 (unaudited) 9.03 0.28 0.45 0.73 (0.30) -- (0.30)
10/31/02 9.34 0.64 (0.29) 0.35 (0.66) -- (0.66)
10/31/01 8.91 0.66 0.44 1.10 (0.67) -- (0.67)
10/31/00 8.99 0.66 (0.08) 0.58 (0.66) -- (0.66)
10/31/99 9.44 0.65 (0.45) 0.20 (0.65) -- (0.65)
10/31/98(9) 9.57 0.41 (0.13)(7) 0.28 (0.41) -- (0.41)
HIGH YIELD FUND
CLASS A
04/30/03 (unaudited) $ 6.63 $0.30(6) $0.86 $1.16 $(0.34) $-- $(0.34)
10/31/02 7.44 0.71 (0.72) (0.01) (0.80) -- (0.80)
10/31/01 8.50 0.84 (1.00) (0.16) (0.90) -- (0.90)
10/31/00 8.92 0.90(6) (0.43) 0.47 (0.89) -- (0.89)
10/31/99 8.86 0.91(6) 0.14(7) 1.05 (0.94) (0.05) (0.99)
10/31/98(16) 10.00 0.47 (1.15) (0.68) (0.46) -- (0.46)
CLASS B
04/30/03 (unaudited) 6.66 0.28(6) 0.85 1.13 (0.31) -- (0.31)
10/31/02 7.47 0.66 (0.72) (0.06) (0.75) -- (0.75)
10/31/01 8.54 0.78 (1.01) (0.23) (0.84) -- (0.84)
10/31/00 8.97 0.84(6) (0.43) 0.41 (0.84) -- (0.84)
10/31/99 8.90 0.86(6) 0.15(7) 1.01 (0.89) (0.05) (0.94)
10/31/98(16) 10.00 0.42 (1.09) (0.67) (0.43) -- (0.43)
CLASS C
04/30/03 (unaudited) 6.67 0.28(6) 0.85 1.13 (0.31) -- (0.31)
10/31/02(4) 7.55 0.46 (0.86) (0.40) (0.48) -- (0.48)
CLASS I
04/30/03 (unaudited) 6.62 0.32(6) 0.85 1.17 (0.35) -- (0.35)
10/31/02 7.43 0.73 (0.72) 0.01 (0.82) -- (0.82)
10/31/01 8.48 0.87 (0.99) (0.12) (0.93) -- (0.93)
10/31/00 8.91 0.93(6) (0.43) 0.50 (0.93) -- (0.93)
10/31/99 8.85 0.98(6) 0.11(7) 1.09 (0.98) (0.05) (1.03)
10/31/98(16) 10.00 0.22 (1.13) (0.91) (0.24) -- (0.24)
NET ASSET
VALUE,
END OF
PERIOD TOTAL RETURN(1)
--------- ---------------
INCOME FUND
CLASS A
04/30/03 (unaudited) $9.44 7.95%
10/31/02 9.02 3.63%
10/31/01 9.32 12.21%
10/31/00 8.90 6.16%
10/31/99 8.99 1.98%
10/31/98(15) 9.44 5.21%
12/31/97 9.48 10.51%
CLASS B
04/30/03 (unaudited) 9.47 7.67%
10/31/02 9.04 2.79%
10/31/01 9.35 11.52%
10/31/00 8.92 5.53%
10/31/99 9.00 1.12%
10/31/98(15) 9.45 4.51%
12/31/97 9.49 9.51%
CLASS C
04/30/03 (unaudited) 9.47 7.69%
10/31/02(4) 9.04 2.25%
CLASS I
04/30/03 (unaudited) 9.46 8.26%
10/31/02 9.03 3.94%
10/31/01 9.34 12.78%
10/31/00 8.91 6.72%
10/31/99 8.99 2.24%
10/31/98(9) 9.44 2.84%
HIGH YIELD FUND
CLASS A
04/30/03 (unaudited) $7.45 17.81%
10/31/02 6.63 (0.48)%
10/31/01 7.44 (1.97)%
10/31/00 8.50 5.28%
10/31/99 8.92 12.26%
10/31/98(16) 8.86 (6.90)%
CLASS B
04/30/03 (unaudited) 7.48 17.33%
10/31/02 6.66 (1.17)%
10/31/01 7.47 (2.72)%
10/31/00 8.54 4.46%
10/31/99 8.97 11.44%
10/31/98(16) 8.90 (6.33)%
CLASS C
04/30/03 (unaudited) 7.49 17.48%
10/31/02(4) 6.67 (5.66)%
CLASS I
04/30/03 (unaudited) 7.44 18.03%
10/31/02 6.62 (0.15)%
10/31/01 7.43 (1.49)%
10/31/00 8.48 5.54%
10/31/99 8.91 12.75%
10/31/98(16) 8.85 (9.13)%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS WITHOUT
FEE WAIVERS, EXPENSES
REIMBURSED AND/OR FEES
NET ASSETS, RATIO OF RATIO OF NET INVESTMENT REDUCED BY CREDITS
END OF PERIOD OPERATING EXPENSES INCOME TO PORTFOLIO ALLOWED BY THE
(IN 000'S) TO AVERAGE NET ASSETS AVERAGE NET ASSETS TURNOVER RATE CUSTODIAN(2)
------------- --------------------- ----------------------- ------------- ----------------------
INCOME FUND
CLASS A
04/30/03 (unaudited) $148,065 0.94%(8) 5.78%(8) 14% 0.94%(8)
10/31/02 130,512 0.97% 6.61% 20% 0.97%
10/31/01 120,508 0.97% 6.86% 35% 0.97%
10/31/00 131,665 1.02% 6.98% 32% 1.03%
10/31/99 172,217 1.06% 6.84% 19% 1.10%
10/31/98(15) 213,397 1.07%(8) 6.66%(8) 37% 1.07%(8)
12/31/97 77,864 1.08% 6.47% 27% 1.08%
CLASS B
04/30/03 (unaudited) 205,145 1.65%(8) 5.07%(8) 14% 1.65%(8)
10/31/02 142,186 1.68% 5.90% 20% 1.68%
10/31/01 72,472 1.69% 6.14% 35% 1.69%
10/31/00 39,347 1.73% 6.27% 32% 1.74%
10/31/99 42,715 1.81% 6.09% 19% 1.85%
10/31/98(15) 34,321 1.84%(8) 5.89%(8) 37% 1.84%(8)
12/31/97 9,691 1.86% 5.65% 27% 1.86%
CLASS C
04/30/03 (unaudited) 14,305 1.61%(8) 5.11%(8) 14% 1.61%(8)
10/31/02(4) 7,710 1.62%(8) 5.96%(8) 20% 1.62%(8)
CLASS I
04/30/03 (unaudited) 585,837 0.56%(8) 6.16%(8) 14% 0.56%(8)
10/31/02 487,376 0.56% 7.02% 20% 0.56%
10/31/01 387,998 0.56% 7.27% 35% 0.56%
10/31/00 286,979 0.60% 7.40% 32% 0.61%
10/31/99 76,145 0.68% 7.22% 19% 0.72%
10/31/98(9) 7,342 0.71%(8) 7.02%(8) 37% 0.71%(8)
HIGH YIELD FUND
CLASS A
04/30/03 (unaudited) $ 34,430 0.98%(8) 8.98%(8) 30% 0.98%(8)
10/31/02 13,563 1.03% 9.72% 60% 1.03%
10/31/01 9,035 1.08% 10.47% 27% 1.09%
10/31/00 8,182 1.08% 10.08% 40% 1.08%
10/31/99 5,827 0.73% 10.17% 30% 1.37%
10/31/98(16) 10,861 0.78%(8) 8.80%(8) 54% 1.22%(8)
CLASS B
04/30/03 (unaudited) 66,920 1.74%(8) 8.22%(8) 30% 1.74%(8)
10/31/02 44,004 1.78% 8.97% 60% 1.78%
10/31/01 35,391 1.77% 9.78% 27% 1.78%
10/31/00 32,881 1.78% 9.38% 40% 1.78%
10/31/99 21,259 1.29% 9.61% 30% 1.93%
10/31/98(16) 2,830 1.57%(8) 8.01%(8) 54% 2.02%(8)
CLASS C
04/30/03 (unaudited) 11,166 1.71%(8) 8.25%(8) 30% 1.71%(8)
10/31/02(4) 2,556 1.78%(8) 8.97%(8) 60% 1.78%(8)
CLASS I
04/30/03 (unaudited) 315,556 0.65%(8) 9.31%(8) 30% 0.65%(8)
10/31/02 244,937 0.68% 10.07% 60% 0.68%
10/31/01 201,385 0.68% 10.87% 27% 0.69%
10/31/00 168,097 0.72% 10.44% 40% 0.72%
10/31/99 44,662 0.21% 10.69% 30% 0.85%
10/31/98(16) 1,309 0.48%(8) 9.10%(8) 54% 0.97%(8)
See Notes to Financial Highlights on page 32.
See Notes to Financial Statements.
26-27
FINANCIAL highlights
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------------- -------------------------------------------
NET
REALIZED
NET ASSET AND DIVIDENDS DISTRIBUTIONS
VALUE, NET UNREALIZED TOTAL FROM FROM NET FROM
BEGINNING OF INVESTMENT AIN/(LOSS) ON INVESTMENT INVESTMENT NET REALIZED TOTAL
PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS
------------ ----------- ------------- ---------- ---------- ------------- -------------
TAX-EXEMPT BOND FUND
CLASS A
04/30/03 (unaudited) $7.95 $0.17 $0.15 $0.32 $(0.17) $(0.07) $(0.24)
10/31/02 7.93 0.35 0.03 0.38 (0.35) (0.01) (0.36)
10/31/01 7.55 0.37 0.38 0.75 (0.37) -- (0.37)
10/31/00 7.41 0.40 0.14 0.54 (0.40) -- (0.40)
10/31/99 8.11 0.41 (0.70) (0.29) (0.41) -- (0.41)
10/31/98(15) 8.09 0.34 0.02 0.36 (0.34) -- (0.34)
12/31/97 7.83 0.38 0.27 0.65 (0.38) (0.01) (0.39)
CLASS B
04/30/03 (unaudited) 7.95 0.14 0.15 0.29 (0.14) (0.07) (0.21)
10/31/02 7.93 0.29 0.03 0.32 (0.29) (0.01) (0.30)
10/31/01 7.55 0.31 0.38 0.69 (0.31) -- (0.31)
10/31/00 7.41 0.34 0.14 0.48 (0.34) -- (0.34)
10/31/99 8.11 0.35 (0.70) (0.35) (0.35) -- (0.35)
10/31/98(15) 8.09 0.28 0.03 0.31 (0.29) -- (0.29)
12/31/97 7.83 0.32 0.27 0.59 (0.32) (0.01) (0.32)
CLASS C
04/30/03 (unaudited) 7.95 0.14 0.15 0.29 (0.14) (0.07) (0.21)
10/31/02(4) 7.83 0.20 0.12 0.32 (0.20) -- (0.20)
CALIFORNIA
MUNICIPAL FUND
CLASS A
04/30/03 (unaudited) $11.35 $0.23 $0.15 $0.38 $(0.23) $(0.07) $(0.30)
10/31/02 11.34 0.50 0.00(11) 0.50 (0.49) -- (0.49)
10/31/01 10.81 0.53 0.53 1.06 (0.53) -- (0.53)
10/31/00 10.43 0.55 0.38 0.93 (0.55) -- (0.55)
10/31/99 11.46 0.54 (0.94) (0.40) (0.57) (0.06) (0.63)
10/31/98(13) 11.33 0.19(6) 0.13 0.32 (0.19) -- (0.19)
06/30/98 10.92 0.58(6) 0.41 0.99 (0.58) -- (0.58)
CLASS B
04/30/03 (unaudited) 11.35 0.19 0.15 0.34 (0.19) (0.07) (0.26)
10/31/02 11.34 0.42 0.00(11) 0.42 (0.41) -- (0.41)
10/31/01 10.81 0.44 0.53 0.97 (0.44) -- (0.44)
10/31/00 10.43 0.48 0.38 0.86 (0.48) -- (0.48)
10/31/99 11.46 0.48 (0.97) (0.49) (0.48) (0.06) (0.54)
10/31/98(13) 11.33 0.16(6) 0.13 0.29 (0.16) -- (0.16)
06/30/98 10.92 0.50(6) 0.41 0.91 (0.50) -- (0.50)
CLASS C
04/30/03 (unaudited) 11.35 0.19 0.15 0.34 (0.19) (0.07) (0.26)
10/31/02(4) 11.20 0.28 0.14 0.42 (0.27) -- (0.27)
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------
RATIO OF
OPERATING
EXPENSES TO
AVERAGE NET
ASSETS WITHOUT
FEE WAIVERS,
EXPENSES REIMBURSED
RATIO OF AND/OR FEES
NET ASSET OPERATING RATIO OF REDUCED BY
VALUE, NET ASSETS, EXPENSES NET INVESTMENT CREDITS ALLOWED
END OF TOTAL END OF PERIOD TO AVERAGE INCOME TO PORTFOLIO BY THE
PERIOD RETURN(1) (IN 000'S) NET ASSETS AVERAGE NET ASSETS TURNOVER RATE CUSTODIAN(2)
--------- --------- ------------- ---------- ------------------ ------------- -------------------
TAX-EXEMPT BOND FUND
CLASS A
04/30/03 (unaudited) $8.03 4.03% $218,845 0.89%(8) 4.24%(8) 18% 0.89%(8)
10/31/02 7.95 5.02% 213,673 0.90% 4.49% 46% 0.90%
10/31/01 7.93 10.16% 219,883 0.89% 4.75% 44% 0.89%
10/31/00 7.55 7.52% 207,309 0.88% 5.41% 28% 0.90%
10/31/99 7.41 (3.77)% 247,814 0.89% 5.16% 57% 0.89%
10/31/98(15) 8.11 4.58% 301,162 0.84%(8) 5.14%(8) 6% 0.84%(8)
12/31/97 8.09 8.59% 188,021 0.80% 4.84% 21% 0.80%
CLASS B
04/30/03 (unaudited) 8.03 3.65% 49,876 1.63%(8) 3.50%(8) 18% 1.63%(8)
10/31/02 7.95 4.25% 47,308 1.64% 3.75% 46% 1.64%
10/31/01 7.93 9.35% 43,978 1.63% 4.01% 44% 1.63%
10/31/00 7.55 6.73% 26,332 1.61% 4.68% 28% 1.63%
10/31/99 7.41 (4.52)% 25,059 1.64% 4.41% 57% 1.64%
10/31/98(15) 8.11 3.88% 17,344 1.62%(8) 4.36%(8) 6% 1.62%(8)
12/31/97 8.09 7.71% 8,110 1.62% 4.00% 21% 1.62%
CLASS C
04/30/03 (unaudited) 8.03 3.65% 2,881 1.61%(8) 3.52%(8) 18% 1.61%(8)
10/31/02(4) 7.95 4.06% 2,395 1.61%(8) 3.78%(8) 46% 1.61%(8)
CALIFORNIA
MUNICIPAL FUND
CLASS A
04/30/03 (unaudited) $11.43 3.43% $280,439 0.85%(8) 4.11%(8) 18% 0.85%(8)
10/31/02 11.35 4.57% 286,095 0.86% 4.39% 48% 0.86%
10/31/01 11.34 9.99% 291,132 0.85% 4.74% 52% 0.86%
10/31/00 10.81 9.33% 248,941 0.87% 5.30% 40% 0.88%
10/31/99 10.43 (3.87)% 283,929 0.88% 4.94% 92% 0.91%
10/31/98(13) 11.46 2.82% 287,590 0.97%(8) 4.87%(8) 28% 1.05%(8)
06/30/98 11.33 9.26% 290,328 1.00% 5.18% 87% 1.19%
CLASS B
04/30/03 (unaudited) 11.43 3.05% 304,255 1.60%(8) 3.36%(8) 18% 1.60%(8)
10/31/02 11.35 3.79% 295,662 1.60% 3.65% 48% 1.60%
10/31/01 11.34 9.19% 237,594 1.58% 4.01% 52% 1.59%
10/31/00 10.81 8.53% 160,086 1.60% 4.57% 40% 1.61%
10/31/99 10.43 (4.62)% 133,842 1.63% 4.19% 92% 1.66%
10/31/98(13) 11.46 2.56% 49,683 1.72%(8) 4.12%(8) 28% 1.81%(8)
06/30/98 11.33 8.45% 34,537 1.75% 4.42% 87% 1.95%
CLASS C
04/30/03 (unaudited) 11.43 3.05% 10,340 1.59%(8) 3.37%(8) 18% 1.59%(8)
10/31/02(4) 11.35 3.77% 6,665 1.58%(8) 3.67%(8) 48% 1.58%(8)
See Notes to Financial Highlights on page 32.
See Notes to Financial Statements.
28-29
FINANCIAL highlights
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
-------------------------------------------- ---------------------------------------------
NET REALIZED DISTRIBUTIONS
NET ASSET VALUE, AND UNREALIZED TOTAL FROM DIVIDENDS FROM FROM
BEGINNING OF NET INVESTMENT GAIN/(LOSS) ON INVESTMENT NET INVESTMENT NET REALIZED TOTAL
PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS
--------------- -------------- --------------- ---------- -------------- ------------- -------------
CALIFORNIA INSURED
INTERMEDIATE
MUNICIPAL FUND
CLASS A
04/30/03 (unaudited) $11.08 $0.18 $0.17 $0.35 $(0.18) $(0.05) $(0.23)
10/31/02 10.98 0.39 0.15 0.54 (0.39) (0.05) (0.44)
10/31/01 10.58 0.44 0.49 0.93 (0.44) (0.09) (0.53)
10/31/00 10.30 0.44 0.31 0.75 (0.44) (0.03) (0.47)
10/31/99 11.02 0.44(6) (0.55) (0.11) (0.45) (0.16) (0.61)
10/31/98(13) 10.81 0.16 0.21 0.37 (0.16) -- (0.16)
06/30/98 10.74 0.49 0.17 0.66 (0.49) (0.10) (0.59)
CLASS B
04/30/03 (unaudited) 11.08 0.14 0.17 0.31 (0.14) (0.05) (0.19)
10/31/02 10.98 0.31 0.15 0.46 (0.31) (0.05) (0.36)
10/31/01 10.58 0.36 0.49 0.85 (0.36) (0.09) (0.45)
10/31/00 10.30 0.36 0.31 0.67 (0.36) (0.03) (0.39)
10/31/99 11.02 0.36(6) (0.56) (0.20) (0.36) (0.16) (0.52)
10/31/98(13) 10.81 0.13 0.21 0.34 (0.13) -- (0.13)
06/30/98 10.74 0.41 0.17 0.58 (0.41) (0.10) (0.51)
CLASS C
04/30/03 (unaudited) 11.08 0.14 0.17 0.31 (0.14) (0.05) (0.19)
10/31/02(4) 10.90 0.21 0.18 0.39 (0.21) -- (0.21)
NET ASSET VALUE,
END OF PERIOD TOTAL RETURN(1)
---------------- ---------------
CALIFORNIA INSURED
INTERMEDIATE
MUNICIPAL FUND
CLASS A
04/30/03 (unaudited) $11.20 3.24%
10/31/02 11.08 5.12%
10/31/01 10.98 9.00%
10/31/00 10.58 7.37%
10/31/99 10.30 (1.11)%
10/31/98(13) 11.02 3.46%
06/30/98 10.81 6.26%
CLASS B
04/30/03 (unaudited) 11.20 2.85%
10/31/02 11.08 4.32%
10/31/01 10.98 8.19%
10/31/00 10.58 6.57%
10/31/99 10.30 (1.89)%
10/31/98(13) 11.02 3.20%
06/30/98 10.81 5.47%
CLASS C
04/30/03 (unaudited) 11.20 2.85%
10/31/02(4) 11.08 3.58%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS WITHOUT
FEE WAIVERS, EXPENSES
REIMBURSED AND/OR FEES
NET ASSETS, RATIO OF RATIO OF NET REDUCED BY CREDITS
END OF PERIOD OPERATING EXPENSES INVESTMENT INCOME TO PORTFOLIO ALLOWED BY THE
(IN 000'S) TO AVERAGE NET ASSETS AVERAGE NET ASSETS TURNOVER RATE CUSTODIAN(2)
------------- --------------------- -------------------- ------------- -----------------------
CALIFORNIA INSURED
INTERMEDIATE
MUNICIPAL FUND
CLASS A
04/30/03 (unaudited) $ 84,666 0.77%(8) 3.24%(8) 19% 0.87%(8)
10/31/02 57,102 0.70% 3.59% 28% 0.89%
10/31/01 39,996 0.73% 4.09% 23% 0.92%
10/31/00 29,657 0.91% 4.19% 45% 0.93%
10/31/99 31,253 0.89% 4.13% 93% 0.97%
10/31/98(13) 37,529 0.82%(8) 4.39%(8) 7% 1.15%(8)
06/30/98 38,724 0.86% 4.49% 25% 1.25%
CLASS B
04/30/03 (unaudited) 105,240 1.53%(8) 2.48%(8) 19% 1.63%(8)
10/31/02 89,240 1.46% 2.83% 28% 1.65%
10/31/01 51,525 1.48% 3.34% 23% 1.67%
10/31/00 35,685 1.66% 3.44% 45% 1.68%
10/31/99 35,501 1.64% 3.38% 93% 1.72%
10/31/98(13) 23,960 1.57%(8) 3.64%(8) 7% 1.90%(8)
06/30/98 21,688 1.61% 3.74% 25% 2.01%
CLASS C
04/30/03 (unaudited) 12,302 1.53%(8) 2.48%(8) 19% 1.63%(8)
10/31/02(4) 7,953 1.45%(8) 2.84%(8) 28% 1.64%(8)
See Notes to Financial Highlights on page 32.
See Notes to Financial Statements.
30-31
FINANCIAL highlights
NOTES TO FINANCIAL HIGHLIGHTS
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges. The total returns would have been
lower if certain fees had not been waived and/or expenses reimbursed by the
investment advisor or if fees had not been reduced by credits allowed by
the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The REIT Fund commenced operations on March 1, 2003.
(4) On March 1, 2002, the Funds commenced selling Class C shares.
(5) On August 1, 2000, the Equity Income Fund commenced selling Class I shares.
(6) Per share numbers have been calculated using the average shares method.
(7) The amount shown may not agree with the change in aggregate gains and
losses of portfolio securities due to the timing of sales and redemptions
of Fund shares.
(8) Annualized.
(9) On March 23, 1998, the Growth & Income, U.S. Government Securities and
Income Funds commenced selling Class I shares.
(10) On June 7, 1999, the West Coast Equity Fund commenced selling Class I
shares.
(11) Amount represents less than $0.01 per share.
(12) The Mid Cap Stock Fund commenced operations on March 1, 2000.
(13) Fiscal year end changed to October 31 from June 30.
(14) On January 5, 2000, the Small Cap Stock Fund commenced selling Class I
shares.
(15) Fiscal year end changed to October 31 from December 31.
(16) On April 8, 1998, May 5, 1998 and July 27, 1998, the High Yield Fund
commenced selling Class A, Class B and Class I shares, respectively.
32
See Notes to Financial Statements.
PORTFOLIO of INVESTMENTS
REIT FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
REAL ESTATE INVESTMENT TRUSTS - 88.6%
DIVERSIFIED - 5.8%
116,500 iStar Financial Inc. ............ $ 3,486,845
94,600 Vornado Realty Trust ............ 3,594,800
-----------
Total Diversified ............... 7,081,645
-----------
HEALTH CARE - 4.8%
104,100 Health Care Property
Investors, Inc. ................. 3,874,602
73,000 Healthcare Realty Trust, Inc. ... 2,009,690
-----------
Total Health Care ............... 5,884,292
-----------
INDUSTRIAL/OFFICE - 26.5%
INDUSTRIAL - 7.3%
118,200 AMB Property Corporation ........ 3,226,860
39,100 CenterPoint Properties Trust .... 2,265,845
133,500 ProLogis ........................ 3,436,290
-----------
8,928,995
-----------
MIXED - 2.9%
127,300 Duke Realty Corporation ......... 3,488,020
-----------
OFFICE - 16.3%
99,400 Arden Realty, Inc. .............. 2,368,702
89,700 Boston Properties, Inc. ......... 3,516,240
136,600 CarrAmerica Realty Corporation .. 3,562,528
231,800 Corporate Office Properties
Trust ........................... 3,534,950
176,200 Equity Office Properties Trust .. 4,575,914
74,500 SL Green Realty Corporation ..... 2,401,135
-----------
19,959,469
-----------
Total Industrial/Office ......... 32,376,484
-----------
LODGING/RESORTS - 5.3%
164,400 FelCor Lodging Trust, Inc. ...... 1,165,596
143,200 Hospitality Properties Trust .... 4,125,592
159,400 Host Marriott Corporation+ ...... 1,230,568
-----------
Total Lodging/Resorts ........... 6,521,756
-----------
MORTGAGE - 2.8%
182,700 Annaly Mortgage Management,
Inc. ............................ 3,471,300
-----------
RESIDENTIAL - 13.4%
APARTMENTS - 13.4%
120,600 Apartment Investment & Management
Company, Class A .............. 4,553,856
90,100 AvalonBay Communities, Inc. ..... 3,594,089
229,000 Equity Residential .............. 5,933,390
140,300 United Dominion Realty
Trust, Inc. ..................... 2,341,607
-----------
Total Residential ............... 16,422,942
-----------
SHARES VALUE
------ -----
RETAIL - 17.5%
REGIONAL MALLS - 13.0%
84,400 General Growth Properties, Inc. . $ 4,694,328
90,000 Macerich Company ................ 2,970,000
111,700 Mills Corporation ............... 3,569,932
126,200 Simon Property Group, Inc. ...... 4,634,064
-----------
15,868,324
-----------
SHOPPING CENTERS - 4.5%
32,000 Developers Diversified
Realty Corporation .............. 806,400
130,900 Kimco Realty Corporation ........ 4,738,580
-----------
5,544,980
-----------
Total Retail .................... 21,413,304
-----------
SELF STORAGE - 5.8%
109,500 Public Storage, Inc. ............ 3,520,425
109,500 Shurgard Storage Centers, Inc.,
Class A ......................... 3,577,365
-----------
Total Self Storage .............. 7,097,790
-----------
SPECIALTY - 6.7%
135,200 Capital Automotive REIT ......... 3,500,328
200,100 Plum Creek Timber Company, Inc. . 4,654,326
-----------
Total Specialty ................. 8,154,654
-----------
Total Real Estate Investment Trusts
(Cost $104,044,650) ........... 108,424,167
-----------
PRINCIPAL
AMOUNT
---------
REPURCHASE AGREEMENT - 11.1%
(Cost $13,633,000)
$13,633,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003,
to be repurchased at $13,633,409
on 05/01/2003, collateralized by
$12,920,478 U.S. Treasury Notes,
having various interest rates
and maturities
(Market Value $13,911,435) .... 13,633,000
-----------
TOTAL INVESTMENTS (Cost $117,677,650*) .....99.7% 122,057,167
OTHER ASSETS AND LIABILITIES (NET) ..........0.3 344,110
-----------
NET ASSETS ................................100.0% $122,401,277
====== ===========
- --------
* Aggregate cost for federal tax purposes.
+ Non-income producing security.
See Notes to Financial Statements.
33
PORTFOLIO of INVESTMENTS
EQUITY INCOME FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS - 75.9%
CONSUMER DISCRETIONARY - 8.1%
AUTOMOBILES & COMPONENTS - 2.5%
138,200 General Motors Corporation ...... $ 4,982,110
200,000 Magna International Inc.,
Class A ......................... 11,726,000
------------
16,708,110
------------
CONSUMER DURABLES & APPAREL - 2.4%
400,000 Mattel, Inc. .................... 8,696,000
142,000 Nike Inc., Class B** ............ 7,601,260
------------
16,297,260
------------
HOTELS, RESTAURANTS & LEISURE - 1.8%
310,000 Carnival Corporation ............ 8,552,900
215,000 McDonald's Corporation .......... 3,676,500
------------
12,229,400
------------
RETAILING - 1.4%
208,000 J.C. Penney Company, Inc.
(Holding Company) ............. 3,548,480
262,000 May Department Stores Company ... 5,664,440
------------
9,212,920
------------
Total Consumer Discretionary .... 54,447,690
------------
CONSUMER STAPLES - 6.0%
FOOD & STAPLES RETAILING - 3.2%
538,000 Supervalu Inc. .................. 8,860,860
446,000 Wal-Mart de Mexico SA de CV,
ADR ............................. 12,566,050
------------
21,426,910
------------
FOOD, BEVERAGE & TOBACCO - 1.9%
290,000 ConAgra Foods, Inc. ............. 6,090,000
99,000 Hershey Foods Corporation ....... 6,459,750
------------
12,549,750
------------
HOUSEHOLD & PERSONAL PRODUCTS - 0.9%
72,000 Procter & Gamble Company ........ 6,469,200
------------
Total Consumer Staples .......... 40,445,860
------------
ENERGY - 5.1%
135,000 BP PLC, Sponsored ADR ........... 5,202,900
91,600 ChevronTexaco Corporation ....... 5,753,396
123,200 ConocoPhillips Company .......... 6,196,960
145,000 Royal Dutch Petroleum
Company (F) ..................... 5,927,600
121,000 Schlumberger Ltd. ............... 5,073,530
130,000 Unocal Corporation .............. 3,601,000
74,117 Valero Energy Corporation ....... 2,723,800
------------
Total Energy .................... 34,479,186
------------
FINANCIALS - 21.3%
BANKS - 6.0%
158,000 Bank of America Corporation ..... 11,699,900
89,551 First State Bancorporation ...... 2,194,895
SHARES VALUE
------ -----
210,000 FleetBoston Financial
Corporation ..................... $ 5,569,200
148,000 PNC Financial Services
Group, Inc. ..................... 6,497,200
240,000 U.S. Bancorp ................... 5,316,000
188,000 Wells Fargo & Company ........... 9,072,880
------------
40,350,075
------------
DIVERSIFIED FINANCIALS - 8.7%
356,333 Citigroup Inc. .................. 13,986,070
178,500 Fannie Mae ...................... 12,921,615
177,000 Franklin Resources, Inc. ........ 6,173,760
344,000 J.P. Morgan Chase & Company ..... 10,096,400
195,000 Morgan Stanley Dean Witter
& Company ....................... 8,726,250
200,000 T. Rowe Price Group, Inc. ....... 6,104,000
------------
58,008,095
------------
INSURANCE - 6.6%
473,000 ACE Ltd. ........................ 15,646,840
225,000 AFLAC Inc. ...................... 7,359,750
198,000 Allstate Corporation ............ 7,482,420
165,000 XL Capital Ltd., Class A** ...... 13,579,500
------------
44,068,510
------------
Total Financials ................ 142,426,680
------------
HEALTH CARE - 8.8%
HEALTH CARE EQUIPMENT & SERVICES - 1.3%
240,000 Becton Dickinson & Company ...... 8,496,000
------------
PHARMACEUTICALS & BIOTECHNOLOGY - 7.5%
202,300 Abbott Laboratories ............. 8,219,449
395,000 Bristol-Myers Squibb Company .... 10,088,300
84,200 Johnson & Johnson ............... 4,745,512
172,000 Merck & Company, Inc. ........... 10,006,960
394,500 Mylan Laboratories Inc. ......... 11,152,515
328,000 Schering-Plough Corporation ..... 5,936,800
------------
50,149,536
------------
Total Health Care ............... 58,645,536
------------
INDUSTRIALS - 9.4%
CAPITAL GOODS - 9.4%
272,000 Boeing Company .................. 7,420,160
112,500 Emerson Electric Company ........ 5,703,750
135,000 General Dynamics Corporation .... 8,379,450
379,000 General Electric Company ........ 11,161,550
260,000 Genuine Parts Company ........... 8,312,200
335,000 Honeywell International Inc. .... 7,906,000
885,000 Tyco International Ltd. ......... 13,806,000
------------
Total Industrials ............... 62,689,110
------------
INFORMATION TECHNOLOGY - 7.4%
COMMUNICATIONS EQUIPMENT - 0.8%
685,000 Motorola, Inc. .................. 5,418,350
------------
See Notes to Financial Statements.
34
PORTFOLIO of INVESTMENTS (continued)
EQUITY INCOME FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
----- -----
COMMON STOCKS (CONTINUED)
INFORMATION TECHNOLOGY (CONTINUED)
COMPUTERS & PERIPHERALS - 2.0%
320,000 Hewlett-Packard Company ......... $ 5,216,000
94,000 International Business Machines
Corporation ................... 7,980,600
------------
13,196,600
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.5%
421,000 Diebold, Inc. ................... 16,831,580
------------
IT SERVICES - 0.6%
230,000 Electronic Data Systems
Corporation ..................... 4,174,500
------------
SOFTWARE - 1.5%
596,000 Computer Associates
International, Inc. ............. 9,679,040
------------
Total Information Technology .... 49,300,070
------------
MATERIALS - 1.5%
144,000 Dow Chemical Company ............ 4,700,160
68,000 E.I. Du Pont de Nemours
& Company ....................... 2,892,040
55,000 PPG Industries, Inc. ............ 2,668,050
------------
Total Materials ................. 10,260,250
------------
TELECOMMUNICATION SERVICES - 3.2%
162,000 Alltel Corporation .............. 7,591,320
80,000 Metromedia Fiber Network, Inc.,
Class A+ ........................ 1,360
115,000 SBC Communications Inc. ......... 2,686,400
301,000 Verizon Communications Inc. ..... 11,251,380
------------
Total Telecommunication
Services ........................ 21,530,460
------------
UTILITIES - 5.1%
484,000 Duke Energy Corporation ......... 8,513,560
476,500 El Paso Corporation ............. 3,573,750
175,000 FPL Group, Inc. ................. 10,652,250
205,000 Pinnacle West Capital
Corporation ..................... 6,810,100
155,000 Southern Company ................ 4,508,950
------------
Total Utilities ................. 34,058,610
------------
Total Common Stocks
(Cost $548,693,490) ........... 508,283,452
------------
REAL ESTATE INVESTMENT TRUSTS - 9.4%
315,000 AMB Property Corporation ........ 8,599,500
97,000 Apartment Investment & Management
Company, Class A .............. 3,662,720
135,000 Arden Realty, Inc. .............. 3,217,050
72,000 CarrAmerica Realty Corporation .. 1,877,760
159,000 Duke Realty Corporation ......... 4,356,600
230,000 Equity Office Properties Trust .. 5,973,100
240,000 Equity Residential .............. 6,218,400
107,000 General Growth Properties,
Inc. . .......................... 5,951,340
115,000 Health Care Property Investors,
Inc. ............................ 4,280,300
97,000 Hospitality Properties Trust .... 2,794,570
161,000 Plum Creek Timber Company,
Inc. ............................ 3,744,860
SHARES VALUE
------ -----
94,000 ProLogis ........................ $ 2,419,560
140,000 Shurgard Storage Centers, Inc.,
Class A ......................... 4,573,800
152,000 Simon Property Group, Inc. ...... 5,581,440
------------
Total Real Estate Investment Trusts
(Cost $59,352,717) ............ 63,251,000
------------
PRINCIPAL
AMOUNT
---------
CONVERTIBLE SECURITIES - 5.5%
CONVERTIBLE BONDS AND NOTES - 5.5%
$ 2,500,000 Adaptec, Inc., Conv. Sub. Note,
4.750% due 02/01/2004** ....... 2,500,000
3,900,000 Analog Devices, Inc., Conv.
Sub. Note,
4.750% due 10/01/2005** ....... 3,968,250
1,000,000 Getty Images, Inc., Conv.
Sub. Note,
5.000% due 03/15/2007 ......... 977,500
6,000,000 LSI Logic Corporation, Conv.
Sub. Note,
4.000% due 02/15/2005** ....... 5,617,500
6,250,000 Omnicare, Inc., Conv. Sub. Deb.,
5.000% due 12/01/2007 ......... 6,335,938
5,500,000 RadiSys Corporation, Conv.
Sub. Note,
5.500% due 08/15/2007 ......... 4,846,875
8,000,000 TriQuint Semiconductor, Inc.,
Conv. Sub. Note,
4.000% due 03/01/2007 ......... 6,700,000
6,500,000 Vitesse Semiconductor Corporation,
Conv. Sub. Deb.,
4.000% due 03/15/2005** ....... 5,809,375
------------
Total Convertible Bonds and Notes
(Cost $33,874,437) ............ 36,755,438
------------
SHARES
------
CONVERTIBLE PREFERRED STOCK - 0.0% ***
(Cost $1,500,000)
6,000 Global Crossing Ltd., Conv. Pfd.,
(in arrears),
7.000% due 12/31/2049+ ........ 60
------------
Total Convertible Securities
(Cost $35,374,437) ............ 36,755,498
------------
PRINCIPAL
AMOUNT
---------
FIXED INCOME SECURITIES - 3.4%
CORPORATE BONDS AND NOTES - 2.9%
$ 1,500,000 Aetna Inc., Company Guarantee,
7.625% due 08/15/2026 ......... 1,791,087
1,250,000 American Home Products
Corporation, Deb.,
7.250% due 03/01/2023 ......... 1,464,192
4,000,000 Erac USA Finance Enterprise
Company, Note,
7.350% due 06/15/2008++ ....... 4,540,260
1,000,000 Medpartners Inc., Sr. Note,
7.375% due 10/01/2006 ......... 1,040,000
500,000 Merrill Lynch & Company,
Inc., Note,
6.375% due 10/15/2008 ......... 561,130
4,000,000 TELUS Corporation, Note,
8.000% due 06/01/2011 4,540,000
See Notes to Financial Statements.
35
PORTFOLIO of INVESTMENTS (continued)
EQUITY INCOME FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
FIXED INCOME SECURITIES (CONTINUED)
CORPORATE BONDS AND NOTES (CONTINUED)
$ 2,000,000 Texas-New Mexico Power Company,
Sr. Note,
6.250% due 01/15/2009 ......... $ 1,953,062
2,000,000 Time Warner Inc., Deb.,
9.150% due 02/01/2023 ......... 2,431,862
1,000,000 Westinghouse Electric Corporation,
Deb.,
7.875% due 09/01/2023 ......... 1,227,159
------------
Total Corporate Bonds and Notes
(Cost $17,449,166) ............ 19,548,752
------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 0.4%
FEDERAL HOME LOAN MORTGAGE CORPORATION
(FHLMC) - 0.4%
1,443,603 6.500% due 09/01/2030 ........... 1,508,199
696,437 7.000% due 09/01/2030 ........... 734,975
------------
Total U.S. Government Agency
Mortgage-Backed Securities
(Cost $2,073,897) ............. 2,243,174
------------
COLLATERALIZED MORTGAGE OBLIGATION (CMO) - 0.1%
(Cost $813,500)
812,104 Reilly Mortgage FHA, Series 1982,
7.430% due 08/01/2022 ......... 870,718
------------
Total Fixed Income Securities
(Cost $20,336,563) ............ 22,662,644
------------
SHARES
------
WARRANTS - 0.0% ***
(Cost $45)
4,500 V2 Music Holdings PLC,
Expires 05/07/2008+,++ ........ 45
------------
PRINCIPAL
AMOUNT VALUE
--------- -----
REPURCHASE AGREEMENT - 5.4%
(Cost $35,923,000)
$35,923,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003,
to be repurchased at $35,924,078
on 05/01/2003, collateralized
by $34,045,502 U.S. Treasury
Notes, having various interest
rates and maturities
(Market Value $36,656,678) .... $ 35,923,000
------------
TOTAL INVESTMENTS (Cost $699,680,252*) .....99.6% 666,875,639
OTHER ASSETS AND LIABILITIES (NET) ......... 0.4 2,670,365
--- ------------
NET ASSETS ................................100.0% $669,546,004
===== ============
- -----------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $19,087,843 representing 2.9% of the total net
assets of the Fund (Collateral Value $19,760,170).
*** Amount represents less than 0.1% of total net assets.
+ Non-income producing security.
++ Security acquired in a transaction exempt from registration under Rule
144A of the Securities Act of 1933.
box:
GLOSSARY OF TERMS
ADR -- American Depository Receipt
(F) -- Foreign Shares
FHA -- Federal Housing Authority
See Notes to Financial Statements.
36
PORTFOLIO of INVESTMENTS
GROWTH & INCOME FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS - 94.1%
CONSUMER DISCRETIONARY - 9.6%
CONSUMER DURABLES & APPAREL - 1.4%
793,000 Mattel, Inc. .................... $ 17,239,820
--------------
HOTELS, RESTAURANTS & LEISURE - 3.0%
1,379,000 Carnival Corporation** .......... 38,046,610
--------------
MEDIA - 5.2%
299,999 Comcast Corporation, Class A+ ... 9,572,968
662,000 Comcast Corporation, Special
Class A+** ...................... 19,899,720
1,812,000 Liberty Media Corporation,
Class A+ ........................ 19,932,000
339,000 Viacom Inc., Class A+ ........... 14,719,380
--------------
64,124,068
--------------
Total Consumer Discretionary .... 119,410,498
--------------
CONSUMER STAPLES - 10.1%
FOOD & STAPLES RETAILING - 3.4%
345,000 Costco Wholesale Corporation+ ... 11,947,350
2,093,000 Kroger Company+ ................. 29,929,900
--------------
41,877,250
--------------
FOOD, BEVERAGE & TOBACCO - 1.5%
420,000 PepsiCo Inc. 18,177,600
--------------
HOUSEHOLD & PERSONAL PRODUCTS - 5.2%
504,000 Avon Products, Inc. ............. 29,317,680
419,000 Kimberly-Clark Corporation ...... 20,853,630
166,000 Procter & Gamble Company ........ 14,915,100
--------------
65,086,410
--------------
Total Consumer Staples .......... 125,141,260
--------------
ENERGY - 7.4%
488,000 BP PLC, Sponsored ADR ........... 18,807,520
555,000 ExxonMobil Corporation .......... 19,536,000
508,000 Royal Dutch Petroleum
Company (F) ..................... 20,767,040
304,000 Schlumberger Ltd. ............... 12,746,720
701,000 Unocal Corporation .............. 19,417,700
--------------
Total Energy .................... 91,274,980
--------------
FINANCIALS - 24.1%
BANKS - 11.0%
395,000 Bank of America Corporation ..... 29,249,750
927,000 FleetBoston Financial
Corporation ..................... 24,584,040
572,000 PNC Financial Services
Group, Inc. ..................... 25,110,800
660,000 Wachovia Corporation ............ 25,218,600
673,000 Wells Fargo & Company ........... 32,478,980
--------------
136,642,170
--------------
DIVERSIFIED FINANCIALS - 8.2%
763,000 Citigroup Inc. .................. 29,947,750
621,000 Freddie Mac ..................... 35,955,900
1,206,000 J.P. Morgan Chase & Company ..... 35,396,100
--------------
101,299,750
--------------
SHARES VALUE
------ -----
INSURANCE - 4.9%
893,000 Allstate Corporation ............ $ 33,746,470
451,000 American International
Group Inc. ...................... 26,135,450
--------------
59,881,920
--------------
Total Financials ................ 297,823,840
--------------
HEALTH CARE - 16.6%
HEALTH CARE EQUIPMENT & SERVICES - 5.3%
395,000 Baxter International Inc. ....... 9,085,000
554,000 Cardinal Health Inc. ............ 30,625,120
676,000 Guidant Corporation+ ............ 26,357,240
--------------
66,067,360
--------------
PHARMACEUTICALS & BIOTECHNOLOGY - 11.3%
799,000 Bristol-Myers Squibb Company .... 20,406,460
260,000 Johnson & Johnson ............... 14,653,600
349,000 Merck & Company, Inc. ........... 20,304,820
1,485,000 Mylan Laboratories Inc. ......... 41,980,950
830,000 Pfizer Inc. ..................... 25,522,500
928,000 Schering-Plough Corporation ..... 16,796,800
--------------
139,665,130
--------------
Total Health Care ............... 205,732,490
--------------
INDUSTRIALS - 8.3%
CAPITAL GOODS - 8.3%
821,000 Boeing Company .................. 22,396,880
675,000 General Electric Company ........ 19,878,750
1,189,000 Honeywell International Inc. .... 28,060,400
2,080,000 Tyco International Ltd. ......... 32,448,000
--------------
Total Industrials ............... 102,784,030
--------------
INFORMATION TECHNOLOGY - 10.8%
COMMUNICATIONS EQUIPMENT - 1.3%
2,057,000 Motorola, Inc. .................. 16,270,870
--------------
COMPUTERS & PERIPHERALS - 3.6%
701,000 Hewlett-Packard Company ......... 11,426,300
398,000 International Business Machines
Corporation ..................... 33,790,200
--------------
45,216,500
--------------
IT SERVICES - 2.0%
625,000 First Data Corporation .......... 24,518,750
--------------
SOFTWARE - 3.9%
1,406,000 Computer Associates
International, Inc. ............. 22,833,440
986,000 Microsoft Corporation ........... 25,212,020
--------------
48,045,460
--------------
Total Information Technology .... 134,051,580
--------------
TELECOMMUNICATION SERVICES - 1.6%
841,000 SBC Communications Inc. ......... 19,645,760
--------------
See Notes to Financial Statements.
37
PORTFOLIO of INVESTMENTS (continued)
GROWTH & INCOME FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
UTILITIES - 5.6%
992,000 Duke Energy Corporation ......... $ 17,449,280
390,000 FPL Group, Inc. ................. 23,739,300
651,000 NiSource Inc. ................... 12,303,900
475,000 Pinnacle West Capital
Corporation ..................... 15,779,500
--------------
Total Utilities ................. 69,271,980
--------------
Total Common Stocks
(Cost $1,113,338,927) ......... 1,165,136,418
--------------
PRINCIPAL
AMOUNT VALUE
--------- -----
REPURCHASE AGREEMENT - 5.7%
(Cost $70,766,000)
$70,766,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003,
to be repurchased at $70,768,123
on 05/01/2003, collateralized by
$67,067,450 U.S. Treasury Notes,
having various interest rates
and maturities
(Market Value $72,211,298) .... $ 70,766,000
--------------
TOTAL INVESTMENTS (Cost $1,184,104,927*). 99.8% 1,235,902,418
OTHER ASSETS AND LIABILITIES (NET) ....... 0.2 2,385,106
--- --------------
NET ASSETS ............................. 100.0% $1,238,287,524
===== ==============
- --------------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $8,214,128, representing 0.7% of the total net
assets of the Fund (Collateral Value $8,607,800).
+ Non-income producing security.
box
GLOSSARY OF TERMS
ADR -- American Depository Receipt
(F) -- Foreign Shares
See Notes to Financial Statements.
38
PORTFOLIO of INVESTMENTS
WEST COAST EQUITY FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS - 93.6%
CONSUMER DISCRETIONARY - 18.0%
AUTOMOBILES & COMPONENTS - 2.9%
1,093,600 Monaco Coach Corporation+ ....... $ 14,785,472
151,700 Superior Industries
International, Inc. ............. 6,001,252
------------
20,786,724
------------
CONSUMER DURABLES & APPAREL - 4.7%
147,800 Columbia Sportswear Company+ .... 7,095,878
166,800 KB Home ......................... 8,218,236
386,500 Mattel, Inc. .................... 8,402,510
182,500 Nike Inc., Class B** ............ 9,769,225
------------
33,485,849
------------
HOTELS, RESTAURANTS & LEISURE - 1.8%
350,000 Starbucks Corporation+ .......... 8,221,500
1,238,485 WestCoast Hospitality
Corporation+ .................... 4,644,319
------------
12,865,819
------------
MEDIA - 4.1%
342,000 Getty Images, Inc.+ ............. 11,576,700
166,500 Knight-Ridder, Inc. ............. 10,747,575
241,600 Univision Communications Inc.,
Class A+ ........................ 7,315,648
------------
29,639,923
------------
RETAILING - 4.5%
1,063,925 Building Materials Holding
Corporation ..................... 13,203,309
1,056,300 Hollywood Entertainment
Corporation+ .................... 18,749,325
------------
31,952,634
------------
Total Consumer Discretionary .... 128,730,949
------------
CONSUMER STAPLES - 3.8%
FOOD & STAPLES RETAILING - 3.8%
397,040 Costco Wholesale Corporation+ ... 13,749,495
952,900 Kroger Company+ ................. 13,626,470
------------
Total Consumer Staples .......... 27,375,965
------------
ENERGY - 3.0%
197,400 ChevronTexaco Corporation ....... 12,398,694
220,000 Nabors Industries Ltd.+ ......... 8,624,000
------------
Total Energy .................... 21,022,694
------------
FINANCIALS - 20.2%
BANKS - 16.0%
268,450 Bank of America Corporation ..... 19,878,722
362,700 Banner Corporation .............. 6,017,193
252,600 Greater Bay Bancorp** ........... 4,041,600
253,900 KeyCorp ......................... 6,121,529
563,125 Pacific Northwest Bancorp ....... 15,857,600
960,600 U.S. Bancorp .................... 21,277,290
846,086 Washington Federal, Inc. ........ 18,444,675
459,500 Wells Fargo & Company ........... 22,175,470
------------
113,814,079
------------
SHARES VALUE
------ -----
DIVERSIFIED FINANCIALS - 0.9%
776,100 Charles Schwab Corporation ...... $ 6,697,743
------------
INSURANCE - 3.3%
167,900 RenaissanceRe Holdings Ltd. ..... 7,436,291
297,415 StanCorp Financial Group, Inc. .. 15,971,186
------------
23,407,477
------------
Total Financials ................ 143,919,299
------------
HEALTH CARE - 12.3%
HEALTH CARE EQUIPMENT & SERVICES - 4.5%
41,200 Caremark Rx, Inc.+ .............. 820,292
223,560 Health Net, Inc.+ ............... 5,832,680
1,887,200 OraSure Technologies, Inc.+ ..... 12,078,080
796,163 SonoSite, Inc.+ ................. 12,897,841
------------
31,628,893
------------
PHARMACEUTICALS & BIOTECHNOLOGY - 7.8%
202,600 Allergan, Inc. .................. 14,232,650
123,039 Amgen, Inc.+ .................... 7,543,521
1,319,500 Corixa Corporation+ ............. 9,460,815
356,500 Dendreon Corporation+** ......... 1,696,940
478,375 EDEN Bioscience Corporation+** .. 904,129
112,200 Genentech, Inc.+ ................ 4,262,478
352,820 ICOS Corporation+ ............... 9,437,935
268,900 Pfizer Inc. ..................... 8,268,675
------------
55,807,143
------------
Total Health Care ................ 87,436,036
------------
INDUSTRIALS - 13.3%
CAPITAL GOODS - 9.9%
551,133 Boeing Company .................. 15,034,908
535,730 Electro Scientific Industries,
Inc.+ ........................... 7,194,854
912,700 Greenbrier Companies, Inc.+ ..... 7,584,537
108,000 Northrop Grumman Corporation .... 9,498,600
370,325 PACCAR Inc. ..................... 21,630,683
188,750 Precision Castparts
Corporation ..................... 5,226,488
125,000 Simpson Manufacturing
Company, Inc.+ .................. 4,390,000
------------
70,560,070
------------
COMMERCIAL SERVICES & SUPPLIES - 0.7%
326,900 Robert Half International
Inc.+ ........................... 5,321,932
------------
TRANSPORTATION - 2.7%
234,410 Alaska Air Group, Inc.+ ......... 4,179,530
416,820 Expeditors International of
Washington, Inc.** ............ 15,155,159
------------
19,334,689
------------
Total Industrials ................ 95,216,691
------------
See Notes to Financial Statements.
39
PORTFOLIO of INVESTMENTS (continued)
WEST COAST EQUITY FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
INFORMATION TECHNOLOGY - 16.2%
COMPUTERS & PERIPHERALS - 2.4%
1,223,900 Advanced Digital Information
Corporation+ .................. $ 9,815,678
291,500 Hewlett-Packard Company ......... 4,751,450
592,100 InFocus Corporation+ ............ 2,658,529
------------
17,225,657
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.6%
573,035 Microvision, Inc.+** ............ 2,435,399
479,000 Tektronix, Inc.+ ................ 8,990,830
------------
11,426,229
------------
INTERNET SOFTWARE & SERVICES - 1.0%
1,770,000 Primus Knowledge Solutions,
Inc.+ ........................... 1,327,500
1,289,000 WatchGuard Technologies, Inc.+ .. 5,671,600
------------
6,999,100
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.0%
134,500 Applied Materials, Inc.+ ........ 1,963,700
125,100 Atmel Corporation+ .............. 230,184
517,800 Credence Systems Corporation+ ... 3,676,380
326,825 FEI Company+ .................... 5,977,629
49,000 Genesis Microchip, Inc.+ ........ 840,840
536,400 Intel Corporation ............... 9,869,760
68,000 KLA-Tencor Corporation+ ......... 2,788,000
676,680 Lattice Semiconductor
Corporation+ .................... 5,873,583
262,400 LSI Logic Corporation+ .......... 1,406,464
1,147,800 Pixelworks, Inc.+ ............... 8,551,110
356,940 TriQuint Semiconductor, Inc.+ ... 1,252,859
------------
42,430,509
------------
SOFTWARE - 5.2%
201,300 Adobe Systems Inc. .............. 6,956,928
1,292,100 BSQUARE Corporation+ ............ 981,996
850,078 Microsoft Corporation ........... 21,736,494
2,334,800 ONYX Software Corporation+ ...... 1,400,880
95,700 Quest Software, Inc.+ ........... 1,023,990
419,308 RadiSys Corporation+ ............ 3,547,346
184,000 Siebel Systems, Inc.+ ........... 1,595,280
------------
37,242,914
------------
Total Information Technology .... 115,324,409
------------
MATERIALS - 5.7%
1,678,200 Louisiana-Pacific Corporation+ .. 13,559,856
1,531,000 Oregon Steel Mills, Inc.+ ....... 3,827,500
414,480 Schnitzer Steel Industries, Inc.,
Class A ......................... 11,891,431
230,100 Weyerhaeuser Company ............ 11,410,659
------------
Total Materials ................. 40,689,446
------------
SHARES VALUE
------ -----
TELECOMMUNICATION SERVICES - 1.1%
1,226,500 AT&T Wireless Services, Inc.+ ... $ 7,923,190
------------
Total Common Stocks
(Cost $644,694,277) ........... 667,638,679
------------
REAL ESTATE INVESTMENT TRUSTS - 2.5%
536,000 Plum Creek Timber Company, Inc. 12,467,360
168,900 Shurgard Storage Centers, Inc.,
Class A ......................... 5,517,963
------------
Total Real Estate Investment Trusts
(Cost $19,194,450) ............ 17,985,323
------------
PRINCIPAL
AMOUNT
---------
REPURCHASE AGREEMENT - 4.0%
(Cost $28,772,000)
$28,772,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003,
to be repurchased at $28,772,863
on 05/01/2003, collateralized by
$27,268,246 U.S. Treasury Notes,
having various interest rates
and maturities
(Market Value $29,359,628) .... 28,772,000
------------
TOTAL INVESTMENTS (Cost $692,660,727*) ....100.1% 714,396,002
OTHER ASSETS AND LIABILITIES (NET) .........(0.1) (684,819)
---- ------------
NET ASSETS ................................100.0% $713,711,183
===== ============
- --------------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $13,743,190 representing 1.9% of the total net
assets of the Fund (Collateral Value $14,575,389).
+ Non-income producing security.
See Notes to Financial Statements.
40
PORTFOLIO of INVESTMENTS
MID CAP STOCK FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS - 91.8%
CONSUMER DISCRETIONARY - 14.8%
CONSUMER DURABLES & APPAREL - 7.4%
208,100 Jones Apparel Group, Inc.+ ................... $ 5,935,012
358,600 Mattel, Inc. ................................. 7,795,964
152,200 Nike Inc., Class B** ......................... 8,147,266
------------
21,878,242
------------
HOTELS, RESTAURANTS & LEISURE - 4.1%
27,600 Mandalay Resort Group+ ....................... 736,845
191,500 Papa John's International, Inc.+ ............. 4,553,870
268,300 Yum! Brands, Inc.+ ........................... 6,627,010
------------
11,917,725
------------
RETAILING - 3.3%
195,000 J.C. Penney Company, Inc.
(Holding Company) .......................... 3,326,700
225,000 Tiffany & Company ............................ 6,241,500
------------
9,568,200
------------
Total Consumer Discretionary ................. 43,364,167
------------
CONSUMER STAPLES - 6.6%
FOOD, BEVERAGE & TOBACCO - 3.2%
120,000 Dean Foods Company+ .......................... 5,223,600
64,000 Hershey Foods Corporation .................... 4,176,000
------------
9,399,600
------------
HOUSEHOLD & PERSONAL PRODUCTS - 3.4%
86,700 Avon Products, Inc. .......................... 5,043,339
150,600 Estee Lauder Companies Inc., Class A ......... 4,894,500
------------
9,937,839
------------
Total Consumer Staples ....................... 19,337,439
------------
ENERGY - 6.5%
204,000 Baker Hughes Inc. ............................ 5,712,000
62,200 ConocoPhillips Company ....................... 3,128,660
123,176 Devon Energy Corporation ..................... 5,820,066
17,900 Nabors Industries Ltd.+ ...................... 701,680
130,000 Unocal Corporation ........................... 3,601,000
------------
Total Energy ................................. 18,963,406
------------
FINANCIALS - 18.0%
BANKS - 7.0%
204,750 Charter One Financial, Inc. .................. 5,947,988
178,500 GreenPoint Financial Corporation ............. 8,525,160
150,900 TCF Financial Corporation .................... 5,975,640
------------
20,448,788
DIVERSIFIED FINANCIALS - 7.0%
190,000 A.G. Edwards, Inc. ........................... 5,667,700
129,000 Ambac Financial Group, Inc. .................. 7,527,150
108,600 Countrywide Financial Corporation ............ 7,341,360
------------
20,536,210
------------
SHARES VALUE
------ -----
INSURANCE - 4.0%
154,000 Fidelity National Financial, Inc. ............ $ 5,297,600
211,100 PMI Group, Inc. .............................. 6,506,102
------------
11,803,702
------------
Total Financials ............................. 52,788,700
------------
HEALTH CARE - 13.9%
HEALTH CARE EQUIPMENT & SERVICES - 11.1%
110,000 AmerisourceBergen Corporation ................ 6,363,500
330,100 Covance Inc.+ ................................ 5,852,673
99,400 Express Scripts, Inc., Class A+** ............ 5,860,624
164,000 Guidant Corporation+ ......................... 6,394,360
340,482 IMS Health Inc. .............................. 5,243,423
37,700 WellPoint Health Networks, Inc.+ ............. 2,862,938
------------
32,577,518
------------
PHARMACEUTICALS & BIOTECHNOLOGY - 2.8%
285,750 Mylan Laboratories Inc. ...................... 8,078,152
------------
Total Health Care ............................ 40,655,670
------------
INDUSTRIALS - 9.2%
CAPITAL GOODS - 6.8%
290,000 Federal Signal Corporation ................... 5,011,200
248,000 Lincoln Electric Holdings, Inc. .............. 4,763,832
86,000 Lockheed Martin Corporation .................. 4,304,300
151,800 Teleflex Inc. ................................ 5,827,602
------------
19,906,934
------------
COMMERCIAL SERVICES & SUPPLIES - 2.4%
330,000 Republic Services, Inc.+ ..................... 7,081,800
------------
Total Industrials ............................ 26,988,734
------------
INFORMATION TECHNOLOGY - 13.9%
COMPUTERS & PERIPHERALS - 1.5%
227,200 Electronics for Imaging, Inc.+ ............... 4,362,240
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.8%
106,000 Arrow Electronics, Inc.+ ..................... 1,789,280
89,100 Diebold, Inc. ................................ 3,562,218
------------
5,351,498
------------
IT SERVICES - 2.8%
501,000 Acxiom Corporation+** ........................ 6,993,960
70,000 Convergys Corporation+ ....................... 1,135,400
------------
8,129,360
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.1%
298,100 Microchip Technology Inc. .................... 6,197,499
------------
See Notes to Financial Statements.
41
PORTFOLIO of INVESTMENTS (continued)
MID CAP STOCK FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
INFORMATION TECHNOLOGY (CONTINUED)
SOFTWARE - 5.7%
330,000 BMC Software Inc.+ ........................... $ 4,923,600
358,600 PeopleSoft Inc.+ ............................. 5,389,758
133,000 Synopsys, Inc.+ .............................. 6,469,120
------------
16,782,478
------------
Total Information Technology ................. 40,823,075
------------
MATERIALS - 2.3%
116,900 Cabot Corporation ............................ 3,258,003
82,800 Valspar Corporation .......................... 3,576,132
------------
Total Materials .............................. 6,834,135
------------
TELECOMMUNICATION SERVICES - 0.7%
86,300 United States Cellular Corporation+ .......... 2,075,515
------------
UTILITIES - 5.9%
103,500 FPL Group, Inc. .............................. 6,300,045
283,800 NiSource Inc. ................................ 5,363,820
173,000 Pinnacle West Capital Corporation ............ 5,747,060
------------
Total Utilities .............................. 17,410,925
------------
Total Common Stocks
(Cost $232,109,376) ....................... 269,241,766
------------
PRINCIPAL
AMOUNT VALUE
--------- -----
REPURCHASE AGREEMENT - 8.9%
(Cost $26,084,000)
$26,084,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003, to be
repurchased at $26,084,783 on
05/01/2003, collateralized by $24,720,733
U.S. Treasury Notes, having various
interest rates and maturities
(Market Value $26,616,730).................... $26,084,000
-------------
TOTAL INVESTMENTS (Cost $258,193,376*)............. 100.7% 295,325,766
OTHER ASSETS AND LIABILITIES (NET)................. (0.7) (1,982,970)
------ -------------
NET ASSETS ........................................ 100.0% $293,342,796
====== =============
- --------------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $14,704,494, representing 5.0% of the total net
assets of the Fund (Collateral Value $15,235,700).
+ Non-income producing security.
See Notes to Financial Statements.
42
PORTFOLIO of INVESTMENTS
GROWTH FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS - 91.0%
CONSUMER DISCRETIONARY - 23.3%
AUTOMOBILES & COMPONENTS - 0.4%
67,700 Harley-Davidson, Inc. ........................ $ 3,008,588
------------
CONSUMER DURABLES & APPAREL - 0.9%
49,300 Ethan Allen Interiors Inc. ................... 1,660,424
95,800 Mattel, Inc. ................................. 2,082,692
20,800 Newell Rubbermaid Inc. ....................... 633,984
37,400 Nike Inc., Class B** ......................... 2,002,022
------------
6,379,122
------------
HOTELS, RESTAURANTS & LEISURE - 3.6%
87,000 Brinker International, Inc.+ ................. 2,762,250
279,000 Carnival Corporation** ....................... 7,697,610
153,165 Hilton Hotels Corporation .................... 2,040,158
30,800 International Game Technology+ ............... 2,658,040
35,500 Mandalay Resort Group ........................ 937,910
266,800 Royal Caribbean Cruises Ltd.** ............... 4,954,476
22,700 Starwood Hotels & Resorts Worldwide Inc. ..... 609,268
20,200 Wendy's International, Inc. .................. 586,608
77,970 Yum! Brands, Inc.+ ........................... 1,925,859
------------
24,172,179
------------
MEDIA - 14.7%
848,815 AOL Time Warner Inc.+ ........................ 11,611,789
233,974 Cablevision Systems Corporation-New York
Group, Class A+ ............................ 5,245,697
190,000 Clear Channel Communications, Inc.+ .......... 7,430,900
569,100 Comcast Corporation, Special Class A+** ...... 17,107,146
50,300 Cox Communications Inc., Class A+** .......... 1,664,930
35,400 EchoStar Communications Corporation,
Class A+ ................................... 1,060,584
41,200 Fox Entertainment Group, Inc., Class A+ ...... 1,046,480
21,700 Gannett Company, Inc. ........................ 1,643,124
10,700 Gray Television, Inc. ........................ 118,235
68,800 Hispanic Broadcasting Corporation+ ........... 1,764,720
912,918 Liberty Media Corporation, Class A+ .......... 10,042,098
56,400 McGraw-Hill Companies, Inc. .................. 3,293,196
58,800 New York Times Company, Class A .............. 2,727,144
180,500 News Corporation Ltd., Sponsored ADR ......... 5,104,540
67,950 Omnicom Group Inc. ........................... 4,206,105
99,675 TMP Worldwide Inc.+ .......................... 1,671,550
67,600 Univision Communications Inc., Class A+** .... 2,046,928
69,120 USA Interactive, Inc.+ ....................... 2,070,144
456,520 Viacom Inc., Class B+ ........................ 19,817,533
------------
99,672,843
------------
RETAILING - 3.7%
70,775 Amazon.com Inc.+ ............................. 2,029,119
28,100 Bed Bath & Beyond Inc.+ ...................... 1,110,231
17,900 Best Buy Company, Inc.+ ...................... 618,982
8,400 eBay Inc.+ ................................... 779,268
SHARES VALUE
------ -----
147,300 Gap, Inc. .................................... $ 2,449,599
67,500 Gymboree Corporation+ ........................ 1,127,925
88,060 Kohl's Corporation+ .......................... 5,001,808
53,350 Lowe's Companies, Inc. ....................... 2,341,532
49,200 Pier 1 Imports, Inc. ......................... 913,152
64,550 Staples, Inc.+ ............................... 1,229,032
160,900 Target Corporation ........................... 5,380,496
89,040 TJX Companies, Inc. .......................... 1,714,020
17,300 Valuevision Media Inc., Class A+ ............. 219,537
------------
24,914,701
------------
Total Consumer Discretionary ................. 158,147,433
------------
CONSUMER STAPLES - 6.0%
FOOD & STAPLES RETAILING - 1.2%
78,300 Costco Wholesale Corporation+ ................ 2,711,529
14,600 Safeway, Inc.+ ............................... 242,652
30,200 Sysco Corporation ............................ 867,646
66,000 Wal-Mart Stores Inc. ......................... 3,717,120
23,850 Walgreen Company ............................. 736,011
------------
8,274,958
------------
FOOD, BEVERAGE & TOBACCO - 3.5%
15,750 Altria Group, Inc. ........................... 484,470
193,700 Anheuser-Busch Companies, Inc. ............... 9,661,756
28,300 Coca-Cola Company ............................ 1,143,320
28,200 Dean Foods Company+ .......................... 1,227,546
64,500 General Mills, Inc. .......................... 2,909,595
186,500 PepsiCo Inc. ................................. 8,071,720
9,450 Wm. Wrigley Jr. Company ...................... 535,909
------------
24,034,316
------------
HOUSEHOLD & PERSONAL PRODUCTS - 1.3%
21,650 Alberto-Culver Company, Class B** ............ 1,066,912
50,025 Avon Products, Inc. .......................... 2,909,954
37,400 Estee Lauder Companies Inc., Class A ......... 1,215,500
54,500 Gillette Company ............................. 1,659,525
18,900 Procter & Gamble Company ..................... 1,698,165
------------
8,550,056
------------
Total Consumer Staples ....................... 40,859,330
------------
ENERGY - 5.6%
9,700 Apache Corporation ........................... 555,325
142,440 BJ Services Company+ ......................... 5,200,484
59,300 ConocoPhillips Company ....................... 2,982,790
132,890 Encana Corporation ........................... 4,354,635
296,545 ExxonMobil Corporation ....................... 10,438,384
54,800 Halliburton Company .......................... 1,173,268
59,864 Kinder Morgan Management, LLC+ ............... 2,052,725
42,505 Murphy Oil Corporation ....................... 1,770,333
19,250 Nabors Industries Ltd.+ ...................... 754,600
62,200 Noble Drilling Corporation+ .................. 1,925,090
35,255 Patterson-UTI Energy, Inc.+** ................ 1,166,588
See Notes to Financial Statements.
43
PORTFOLIO of INVESTMENTS (continued)
GROWTH FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
ENERGY (CONTINUED)
66,100 Rowan Companies, Inc. ........................ $ 1,355,050
34,775 Smith International Inc.+ .................... 1,236,599
38,500 TotalFinaElf SA, Sponsored ADR ............... 2,529,450
34,800 Varco International, Inc.+ ................... 612,132
------------
Total Energy ................................. 38,107,453
------------
FINANCIALS - 13.7%
BANKS - 1.8%
65,400 Bank of America Corporation .................. 4,842,870
130,700 Bank One Corporation ......................... 4,711,735
48,772 Fifth Third Bancorp .......................... 2,403,972
------------
11,958,577
------------
DIVERSIFIED FINANCIALS - 8.3%
165,755 American Express Company ..................... 6,275,484
246,300 Charles Schwab Corporation ................... 2,125,569
407,704 Citigroup Inc. ............................... 16,002,382
130,920 Fannie Mae ................................... 9,477,299
69,800 Freddie Mac .................................. 4,041,420
87,895 Goldman Sachs Group, Inc. .................... 6,671,231
77,900 J.P. Morgan Chase & Company .................. 2,286,365
59,500 Merrill Lynch & Company, Inc. ................ 2,442,475
136,500 Morgan Stanley Dean Witter & Company ......... 6,108,375
6,000 SLM Corporation .............................. 672,000
------------
56,102,600
------------
INSURANCE - 3.6%
55,490 AFLAC Inc. ................................... 1,815,078
95,060 Allstate Corporation ......................... 3,592,317
125,650 American International Group Inc. ............ 7,281,417
2,351 Berkshire Hathaway, Class B+ ................. 5,482,532
11,700 Everest Re Group Ltd. ........................ 814,905
11,500 Marsh & McLennan Companies, Inc. ............. 548,320
31,900 St. Paul Companies, Inc. ..................... 1,095,446
40,980 Willis Group Holdings Ltd. ................... 1,278,166
34,755 XL Capital Ltd., Class A ..................... 2,860,337
------------
24,768,518
------------
Total Financials ............................. 92,829,695
------------
HEALTH CARE - 14.9%
HEALTH CARE EQUIPMENT & SERVICES - 5.8%
66,865 Anthem, Inc.+ ................................ 4,589,614
89,300 Applera Corporation-Applied Biosystems
Group ........................................ 1,565,429
18,500 Apria Healthcare Group Inc.+ ................. 433,825
40,700 Baxter International Inc. .................... 936,100
21,500 Becton Dickinson & Company ................... 761,100
15,900 Boston Scientific Corporation+ ............... 684,495
36,100 Cardinal Health Inc. ......................... 1,995,608
85,300 Covance Inc.+ ................................ 1,512,369
SHARES VALUE
------ -----
106,190 Guidant Corporation+ ......................... $ 4,140,348
25,700 Lincare Holdings Inc.+ ....................... 780,509
38,845 McKesson Corporation ......................... 1,077,560
257,305 Medtronic Inc. ............................... 12,283,741
22,900 Millipore Corporation+ ....................... 782,035
24,400 St. Jude Medical, Inc.+ ...................... 1,280,024
30,600 STERIS Corporation+ .......................... 694,620
48,625 UnitedHealth Group Inc. ...................... 4,479,821
16,600 Varian Medical Systems, Inc.+ ................ 894,076
9,600 WellPoint Health Networks, Inc.+ ............. 729,024
------------
39,620,298
------------
PHARMACEUTICALS & BIOTECHNOLOGY - 9.1%
98,350 Abbott Laboratories .......................... 3,995,961
151,950 Amgen, Inc.+ ................................. 9,316,055
18,400 Barr Laboratories, Inc.+ ..................... 1,023,040
16,915 Biovail Corporation+ ......................... 611,477
35,800 Celgene Corporation+ ......................... 952,638
9,855 Eli Lilly & Company .......................... 628,946
75,745 Forest Laboratories, Inc.+ ................... 3,917,531
76,700 Genentech, Inc.+ ............................. 2,913,833
67,950 Johnson & Johnson ............................ 3,829,662
66,550 Merck & Company, Inc. ........................ 3,871,879
110,900 Perrigo Company .............................. 1,703,424
628,735 Pfizer Inc. .................................. 19,333,601
88,500 Serono SA, ADR ............................... 1,201,830
45,000 SICOR, Inc.+ ................................. 806,850
117,800 Teva Pharmaceutical Industries Ltd.,
Sponsored ADR .............................. 5,501,260
42,000 Wyeth ........................................ 1,828,260
------------
61,436,247
------------
Total Health Care ............................ 101,056,545
------------
INDUSTRIALS - 4.7%
CAPITAL GOODS - 3.0%
5,100 3M Company ................................... 642,804
4,900 Danaher Corporation .......................... 338,002
27,500 Dover Corporation ............................ 790,350
179,475 General Electric Company ..................... 5,285,539
104,100 Honeywell International Inc. ................. 2,456,760
57,400 Ingersoll-Rand Company, Class A .............. 2,530,192
48,985 Lockheed Martin Corporation .................. 2,451,699
50,630 Northrop Grumman Corporation ................. 4,452,908
105,400 Tyco International Ltd. ...................... 1,644,240
------------
20,592,494
------------
COMMERCIAL SERVICES & SUPPLIES - 0.5%
152,500 Waste Management Inc. ........................ 3,312,300
------------
See Notes to Financial Statements.
44
PORTFOLIO of INVESTMENTS (continued)
GROWTH FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
INDUSTRIALS (CONTINUED)
TRANSPORTATION - 1.2%
37,320 Canadian National Railway Company ............ $ 1,814,872
9,000 Expeditors International of
Washington, Inc. ............................. 327,231
79,900 FedEx Corporation ............................ 4,784,412
14,400 United Parcel Service Inc., Class B .......... 894,528
------------
7,821,043
------------
Total Industrials ............................ 31,725,837
------------
INFORMATION TECHNOLOGY - 20.2%
COMMUNICATIONS EQUIPMENT - 4.0%
93,745 CIENA Corporation+ ........................... 456,538
692,990 Cisco Systems Inc.+ .......................... 10,422,570
14,050 Harris Corporation ........................... 401,268
435,500 Lucent Technologies Inc.+ .................... 783,900
800,728 Nokia Oyj, Sponsored ADR** ................... 13,268,063
10,700 QUALCOMM Inc. ................................ 341,223
58,400 UTStarcom, Inc.+** ........................... 1,271,426
------------
26,944,988
------------
COMPUTERS & PERIPHERALS - 3.4%
133,415 Apple Computer, Inc.+ ........................ 1,894,493
285,885 Dell Computer Corporation+ ................... 8,264,936
84,125 EMC Corporation+ ............................. 764,696
117,150 International Business Machines
Corporation ................................ 9,946,035
31,100 Lexmark International, Inc.+ ................. 2,317,261
------------
23,187,421
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.4%
303,600 Sanmina-SCI Corporation+ ..................... 1,457,280
120,900 Vishay Intertechnology, Inc.+ ................ 1,511,250
------------
2,968,530
------------
INTERNET SOFTWARE & SERVICES - 0.8%
47,540 Symantec Corporation+ ........................ 2,089,383
47,100 WebEx Communications, Inc.+ .................. 485,130
116,700 Yahoo! Inc.+** ............................... 2,891,826
------------
5,466,339
------------
IT SERVICES - 1.3%
74,105 Accenture Ltd., Class A+ ..................... 1,187,162
191,450 First Data Corporation ....................... 7,510,584
4,300 Paychex, Inc. ................................ 133,902
------------
8,831,648
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 3.9%
46,300 Analog Devices, Inc.+ ........................ 1,533,456
158,070 Applied Materials, Inc.+ ..................... 2,307,822
162,100 Cypress Semiconductor Corporation+ ........... 1,413,512
432,350 Intel Corporation ............................ 7,955,240
68,200 International Rectifier Corporation+ ......... 1,542,684
SHARES VALUE
------ -----
11,300 Linear Technology Corporation ................ $ 389,511
28,600 Marvell Technology Group Ltd.+ ............... 660,060
6,400 Maxim Integrated Products Inc. ............... 251,456
62,770 Microchip Technology Inc. .................... 1,304,988
117,100 Micron Technology Inc.+** .................... 995,350
82,900 National Semiconductor Corporation+ .......... 1,552,717
19,880 Novellus System, Inc.+ ....................... 557,435
116,600 PMC-Sierra, Inc.+ ............................ 961,950
127,700 RF Micro Devices, Inc.+ ...................... 606,575
225,945 Texas Instruments Inc. ....................... 4,177,723
------------
26,210,479
------------
SOFTWARE - 6.4%
60,000 BEA Systems, Inc.+ ........................... 642,600
125,400 Cadence Design Systems, Inc.+ ................ 1,433,322
186,480 Computer Associates International, Inc. ...... 3,028,435
111,840 Electronic Arts Inc.+** ...................... 6,628,757
6,975 Intuit Inc.+ ................................. 270,490
1,029,560 Microsoft Corporation ........................ 26,325,849
84,300 Oracle Corporation+ .......................... 1,001,484
41,300 PeopleSoft Inc.+ ............................. 620,739
11,600 Reynolds and Reynolds Company, Class A ....... 334,196
85,300 SAP AG, Sponsored ADR ........................ 2,176,003
53,385 VERITAS Software Corporation+ ................ 1,175,004
------------
43,636,879
------------
Total Information Technology ................. 137,246,284
------------
MATERIALS - 1.4%
43,700 Air Products & Chemicals, Inc. ............... 1,882,159
65,900 International Flavors & Fragrances, Inc. ..... 2,094,302
65,400 International Paper Company .................. 2,338,050
58,700 Praxair, Inc. ................................ 3,409,296
------------
Total Materials .............................. 9,723,807
------------
TELECOMMUNICATION SERVICES - 0.9%
111,400 AT&T Corporation ............................. 1,899,370
149,800 AT&T Wireless Services, Inc.+ ................ 967,708
7,400 Mobile Telesystems OJSC,
Sponsored ADR+ ............................ 355,200
60,300 Telefonos de Mexico SA de CV, Class L,
Sponsored ADR ............................. 1,821,663
60,900 Vodafone Group PLC, Sponsored ADR ............ 1,203,384
------------
Total Telecommunication Services ............. 6,247,325
------------
UTILITIES - 0.3%
105,500 Duke Energy Corporation ...................... 1,855,745
11,600 Philadelphia Suburban Corporation ............ 262,740
------------
Total Utilities .............................. 2,118,485
------------
Total Common Stocks
(Cost $642,729,185) ........................ 618,062,194
------------
See Notes to Financial Statements.
45
PORTFOLIO of INVESTMENTS (continued)
GROWTH FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
REAL ESTATE INVESTMENT TRUSTS - 0.2%
(Cost $2,069,569)
189,500 Host Marriott Corporation+ .................. $ 1,462,940
------------
INVESTMENT COMPANY SECURITY - 0.3%
(Cost $1,790,150)
64,100 Nasdaq-100 Index Tracking Stock+** ........... 1,759,545
------------
PREFERRED STOCK - 0.1%
(Cost $597,930)
26,700 News Corporation Ltd., Sponsored ADR ........ 626,382
------------
PRINCIPAL
AMOUNT
---------
COMMERCIAL PAPER - 1.5%
$ 3,900,000 Prudential Funding LLC,
1.300% due 05/01/2003 ..................... 3,900,000
6,600,000 General Electric Capital Corporation,
1.370% due 05/01/2003 .................... 6,600,000
------------
Total Commercial Paper
(Cost $10,500,000) ............................ 10,500,000
------------
REPURCHASE AGREEMENT - 7.1%
(Cost $48,483,000)
48,483,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003, to be
repurchased at $48,484,454 on
05/01/2003, collateralized by $45,949,060
U.S. Treasury Notes, having various
interest rates and maturities
(Market Value $49,473,198) .................. 48,483,000
------------
TOTAL INVESTMENTS (Cost $706,169,834*) .................. 100.2% 680,894,061
OTHER ASSETS AND LIABILITIES (NET) ...................... (0.2) (1,568,526)
----- ------------
NET ASSETS .............................................. 100.0% $679,325,535
===== ============
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $26,098,278, representing 3.8% of the total net
assets of the Fund (Collateral Value $27,318,741).
+ Non-income producing security.
SCHEDULE OF FORWARD FOREIGN CURRENCY CONTRACTS
FORWARD FOREIGN CURRENCY CONTRACTS TO BUY
CONTRACTS TO RECEIVE
- --------------------------------------------------------------------------------
NET
IN UNREALIZED
EXPIRATION LOCAL VALUE IN EXCHANGE APPRECIATION
DATE CURRENCY U.S. $ FOR U.S. $ OF CONTRACTS
- --------------------------------------------------------------------------------
07/31/2003 EUR 150,000 166,879 164,261 $ 2,618
09/26/2003 EUR 350,000 388,687 379,732 8,955
----------
$ 11,573
----------
FORWARD FOREIGN CURRENCY CONTRACTS TO SELL
CONTRACTS TO DELIVER
- --------------------------------------------------------------------------------
NET
UNREALIZED
IN APPRECIATION/
EXPIRATION LOCAL VALUE IN EXCHANGE (DEPRECIATION)
DATE CURRENCY U.S. $ FOR U.S. $ OF CONTRACTS
- --------------------------------------------------------------------------------
05/09/2003 KRW 110,000,000 90,460 92,718 $ 2,258
05/27/2003 KRW 1,671,000,000 1,372,049 1,380,370 8,321
07/31/2003 EUR 500,000 556,263 535,800 (20,463)
09/26/2003 EUR 1,525,000 1,693,565 1,619,527 (74,038)
10/17/2003 EUR 315,000 349,598 335,475 (14,123)
---------
$ (98,045)
---------
Net Unrealized Depreciation of Forward Foreign
Currency Contracts ................................... $ (86,472)
=========
- --------------------------------------------------------------------------------
GLOSSARY OF TERMS
ADR -- American Depository Receipt
EUR -- EURO
KRW -- South Korean Won
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
46
PORTFOLIO of INVESTMENTS
SMALL CAP STOCK FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS - 98.6%
CONSUMER DISCRETIONARY - 16.3%
CONSUMER DURABLES & APPAREL - 2.3%
312,000 Cutter & Buck Inc.+ ............................ $ 1,075,776
75,255 K2 Inc.+ ....................................... 717,180
118,200 Quiksilver, Inc.+ .............................. 3,853,320
-----------
5,646,276
-----------
HOTELS, RESTAURANTS & LEISURE - 3.4%
656,200 Intrawest Corporation .......................... 7,651,292
198,640 WestCoast Hospitality Corporation+ ............. 744,900
-----------
8,396,192
-----------
MEDIA - 3.4%
186,500 Getty Images, Inc.+ ............................ 6,313,025
2,736,800 Sirius Satellite Radio Inc.+ ................... 2,025,232
-----------
8,338,257
-----------
RETAILING - 7.2%
228,800 AnnTaylor Stores Corporation+ .................. 5,413,408
495,300 Building Materials Holding Corporation ......... 6,146,673
376,000 West Marine, Inc.+ ............................. 6,143,840
-----------
17,703,921
-----------
Total Consumer Discretionary ................... 40,084,646
-----------
CONSUMER STAPLES - 2.0%
FOOD & STAPLES RETAILING - 2.0%
152,100 United Natural Foods, Inc.+ .................... 4,439,799
10,100 Whole Foods Market, Inc.+ ...................... 599,536
-----------
Total Consumer Staples ......................... 5,039,335
-----------
ENERGY - 2.7%
133,562 Hanover Compressor Company+ .................... 1,123,257
335,000 Headwaters Inc.+ ............................... 5,494,000
-----------
Total Energy ................................... 6,617,257
-----------
FINANCIALS - 6.9%
DIVERSIFIED FINANCIALS - 6.9%
382,017 American Capital Strategies Ltd.** ............. 9,267,732
132,000 First Albany Companies Inc. .................... 1,223,640
292,200 Investors Financial Services Corporation** ..... 6,372,882
-----------
Total Financials ............................... 16,864,254
-----------
HEALTH CARE - 22.9%
HEALTH CARE EQUIPMENT & SERVICES - 3.7%
62,300 Accredo Heath, Inc.+ ........................... 920,171
464,800 SonoSite, Inc.+ ................................ 7,529,760
92,500 Therasense, Inc.+ .............................. 731,675
-----------
9,181,606
-----------
PHARMACEUTICALS & BIOTECHNOLOGY - 19.2%
309,100 Antigenics Inc.+** ............................. 3,041,544
846,000 Corixa Corporation+ ............................ 6,065,820
1,434,600 Dendreon Corporation+ .......................... 6,828,696
366,100 DUSA Pharmaceuticals, Inc.+ .................... 798,098
SHARES VALUE
------ -----
953,100 Emisphere Technologies, Inc.+ .................. $ 2,887,893
281,000 Incyte Corporation+ ............................ 969,450
148,600 Medicis Pharmaceutical Corporation,
Class A+ ..................................... 8,565,304
261,400 Myriad Genetics, Inc.+ ......................... 3,115,888
380,000 Neose Technologies, Inc.+ ...................... 3,024,800
1,116,900 Pain Therapeutics, Inc.+ ....................... 3,596,418
681,400 Pharmacyclics, Inc.+ ........................... 2,412,156
505,800 Zymogenetics, Inc.+** .......................... 5,715,540
-----------
47,021,607
-----------
Total Health Care .............................. 56,203,213
-----------
INDUSTRIALS - 7.9%
CAPITAL GOODS - 0.1%
23,720 Electro Scientific Industries, Inc.+ ........... 318,560
-----------
COMMERCIAL SERVICES & SUPPLIES - 6.4%
800,200 Digimarc Corporation+ .......................... 10,275,368
2,330,200 Edison Schools Inc.+ ........................... 2,493,314
562,395 First Consulting Group, Inc.+ .................. 2,828,847
-----------
15,597,529
-----------
TRANSPORTATION - 1.4%
93,500 Expeditors International of
Washington, Inc. ............................. 3,399,566
-----------
Total Industrials .............................. 19,315,655
-----------
INFORMATION TECHNOLOGY - 38.3% ++
COMPUTERS & PERIPHERALS - 2.6%
297,500 Advanced Digital Information Corporation+ ...... 2,385,950
70,200 Avid Technology, Inc.+ ......................... 1,928,394
202,900 Pinnacle Systems, Inc.+ ........................ 1,917,405
-----------
6,231,749
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.4%
239,700 Microvision, Inc.+ ............................. 1,018,725
-----------
INTERNET SOFTWARE & SERVICES - 6.3%
2,442,225 Click2learn, Inc.+** ........................... 3,467,960
3,623,700 Corillian Corporation+ ......................... 3,659,937
1,238,400 Interwoven, Inc.+ .............................. 2,340,576
5,184,800 Intraware, Inc.+ ............................... 5,236,648
966,500 Primus Knowledge Solutions, Inc.+ .............. 724,875
-----------
15,429,996
-----------
IT SERVICES - 4.2%
70,100 Cognizant Technology Solutions
Corporation+ ................................. 1,258,996
2,915,300 Lionbridge Technologies, Inc.+ ................. 8,979,124
-----------
10,238,120
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 7.4%
283,350 Credence Systems Corporation+ .................. 2,011,785
389,600 FEI Company+ ................................... 7,125,784
946,800 Pixelworks, Inc.+ .............................. 7,053,660
135,300 Rudolph Technologies, Inc.+ .................... 2,044,383
-----------
18,235,612
-----------
See Notes to Financial Statements.
47
PORTFOLIO of INVESTMENTS (continued)
SMALL CAP STOCK FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
INFORMATION TECHNOLOGY (CONTINUED)
SOFTWARE - 17.4%
2,936,500 BSQUARE Corporation+............................ $ 2,231,740
404,800 Business Objects SA, Sponsored ADR+ ............ 8,796,304
417,100 E.piphany, Inc.+ ............................... 1,856,095
1,180,500 Informatica Corporation+ ...................... 7,708,665
314,650 Made2Manage Systems, Inc.+ .................... 1,117,007
707,489 NetIQ Corporation+ ............................. 9,749,198
1,217,300 Nuance Communications Inc.+ ................... 4,443,145
3,605,400 ONYX Software Corporation+ .................... 2,163,240
626,300 PDF Solutions, Inc.+ ........................... 4,634,620
-----------
42,700,014
-----------
Total Information Technology ..................... 93,854,216
-----------
TELECOMMUNICATION SERVICES - 1.6%
91,985 Gilat Satellite Networks Ltd.+ ................. 315,508
1,925,280 Latitude Communications, Inc.+ ................. 3,504,010
-----------
Total Telecommunication Services ............... 3,819,518
-----------
Total Common Stocks
(Cost $399,923,931)........................... 241,798,094
-----------
PRINCIPAL
AMOUNT VALUE
--------- -----
REPURCHASE AGREEMENT - 1.4%
(Cost $3,549,000)
$ 3,549,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003, to be
repurchased at $3,549,106 on 05/01/2003,
collateralized by $3,363,513 U.S.
Treasury Notes, having various interest
rates and maturities
(Market Value $3,621,483) .................... $ 3,549,000
------------
TOTAL INVESTMENTS (Cost $403,472,931*).................. 100.0% 245,347,094
OTHER ASSETS AND LIABILITIES (NET) ..................... 0.0 (96,674)
------------
NET ASSETS ............................................. 100.0% $245,250,420
============
- --------------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $10,761,259 representing 4.4% of the total net
assets of the Fund (Collateral Value $12,313,883).
+ Non-income producing security.
++ Investments in the Information Technology sector as of April 30, 2003 are
38.3% of the total net assets of the Fund.
- --------------------------------------------------------------------------------
GLOSSARY OF TERMS
ADR -- American Depository Receipt
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
48
PORTFOLIO of INVESTMENTS
INTERNATIONAL GROWTH FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS - 94.3%
UNITED KINGDOM - 19.0%
111,000 ARM Holdings PLC+ ................................ $ 113,541
62,900 AstraZeneca PLC .................................. 2,491,506
126,200 AstraZeneca PLC (F) .............................. 4,951,748
696,969 BAE SYSTEMS PLC .................................. 1,414,702
162,600 Barclays PLC ..................................... 1,123,319
383,000 BG Group PLC ..................................... 1,531,865
412,884 BHP Billiton PLC ................................. 2,111,669
50,900 BOC Group PLC .................................... 641,863
105,900 Brambles Industries Ltd., PLC .................... 314,816
210,200 Centrica PLC ..................................... 558,524
59,500 Compass Group PLC ................................ 273,878
21,400 GlaxoSmithKline PLC .............................. 428,903
109,500 HBOS PLC ......................................... 1,282,820
143,200 HSBC Holdings PLC** .............................. 1,568,911
141,300 Marks & Spencer Group PLC ........................ 658,307
731,000 mmO2 PLC+ ........................................ 651,343
198,500 National Grid Group PLC .......................... 1,303,917
211,700 Pearson PLC ...................................... 1,764,505
188,600 Prudential PLC ................................... 1,154,485
24,700 Reckitt Benckiser PLC ............................ 435,629
256,400 Reuters Group PLC ................................ 553,222
145,100 Royal Bank of Scotland Group PLC ................. 3,805,605
199,840 Smiths Group PLC ................................. 2,136,762
145,800 Standard Chartered PLC ........................... 1,626,525
106,400 Unilever PLC ..................................... 1,045,838
4,818,919 Vodafone Group PLC ............................... 9,511,835
31,000 Xstrata PLC ...................................... 275,724
-----------
43,731,762
-----------
JAPAN - 15.0% +++
4,950 ACOM Company Ltd.++** ............................ 139,045
20,710 Advantest Corporation ............................ 694,617
93,000 AEON Company Ltd. ................................ 2,113,282
10,165 Aiful Corporation ................................ 381,848
25,000 Canon Inc. ....................................... 1,010,397
67,087 Chugai Pharmaceutical Company Ltd. ............... 703,159
6,000 DAI NIPPON PRINTING Company Ltd. ................. 58,259
151,000 Daiwa Securities Group Inc. ...................... 593,820
14,800 Hirose Electric Company Ltd. ..................... 1,058,561
109,000 Hitachi Ltd. ..................................... 363,760
16,500 Hoya Corporation ................................. 975,390
155,000 Japan Airlines System Corporation+ ............... 275,532
185 Japan Telecom Company Ltd. ....................... 505,702
39,300 Kansai Electric Power Company, Inc. .............. 657,417
3,421 Keyence Corporation .............................. 549,896
139,000 Mitsubishi Estate Company Ltd. ................... 813,533
457,000 Mitsubishi Heavy Industries Ltd. ................. 1,015,470
264,000 Mitsubishi Motors Corporation+** ................. 562,267
158,000 Mitsui Fudosan Company Ltd. ...................... 850,545
104,000 Mitsui Sumitomo Insurance Company Ltd. ........... 488,345
13,900 Murata Manufacturing Company Ltd. ................ 495,346
228,000 NEC Corporation+ ................................. 713,097
279,000 Nikko Cordial Corporation ........................ 748,617
SHARES VALUE
------ -----
3,100 Nintendo Company Ltd. ............................ $ 242,261
311,000 Nissan Motor Company Ltd. ........................ 2,386,089
19,700 Nitto Denko Corporation .......................... 566,586
86,000 Nomura Securities Company Ltd.** ................. 851,635
445 NTT DoCoMo Inc. .................................. 917,910
22,800 ORIX Corporation ................................. 1,041,925
15,100 Rohm Company Ltd. ................................ 1,556,088
55,000 Sankyo Company Ltd. .............................. 796,914
124,000 Sekisui House Ltd. ............................... 910,817
6,700 Shimamura Company Ltd. ........................... 370,787
11,800 Shin-Etsu Chemical Company Ltd. .................. 353,228
105,000 Shionogi & Company Ltd. .......................... 1,246,688
46,690 Sony Corporation ................................. 1,135,343
147,000 Suzuki Motor Corporation** ....................... 1,740,433
22,200 TDK Corporation .................................. 770,652
55,600 Tokyo Electron Ltd. .............................. 2,083,951
168,000 Tokyu Corporation** .............................. 455,006
216,000 Toray Industries Inc. ............................ 521,617
16,000 Tostem Corporation ............................... 170,652
11 Yahoo Japan Corporation+** ....................... 123,596
35,000 Yamato Transport Company Ltd. .................... 391,498
-----------
34,401,581
-----------
FRANCE - 11.7%
12,900 Accor SA ......................................... 425,134
78,000 BNP Paribas SA ................................... 3,661,308
87,300 Bouygues SA++** .................................. 2,135,635
10,500 Carrefour SA ..................................... 456,659
17,800 Essilor International SA ......................... 728,853
28,500 France Telecom SA+ ............................... 658,396
25,400 France Telecom SA-New+ ........................... 584,230
10,700 Groupe Danone .................................... 1,514,173
10,262 L'Air Liquide SA ................................. 1,554,119
12,600 L'Oreal SA ....................................... 900,662
43,300 Renault SA ....................................... 1,872,544
114,300 Sanofi-Synthelabo SA ............................. 6,818,146
35,900 Schneider Electric SA ............................ 1,699,564
3,300 Societe Television Francaise 1 ................... 92,698
14,600 STMicroelectronics NV ............................ 300,614
65,800 STMicroelectronics NV (F) ........................ 1,360,001
138,400 Vivendi Universal SA+ ............................ 2,255,077
-----------
27,017,813
-----------
NETHERLANDS - 9.4%
154,158 ABN AMRO Holding NV .............................. 2,604,740
301,893 AEGON NV ......................................... 3,069,331
10,700 ASML Holding NV+ ................................. 92,427
46,400 ASML Holding NV (F)+ ............................. 408,784
8,000 Hagemeyer NV ..................................... 38,748
42,000 Heineken Holding NV, Class A ..................... 1,218,226
60,025 Heineken NV ...................................... 2,228,729
87,500 ING Groep NV ..................................... 1,420,834
338,800 Koninklijke (Royal) KPN NV+ ...................... 2,253,523
42,800 Koninklijke (Royal) Philips Electronics NV ....... 796,254
See Notes to Financial Statements.
49
PORTFOLIO of INVESTMENTS (continued)
INTERNATIONAL GROWTH FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
NETHERLANDS (CONTINUED)
4,600 Koninklijke (Royal) Philips Electronics
NV (F) ....................................... $ 85,928
19,900 Koninklijke Numico NV+ ......................... 185,666
128,900 Royal Dutch Petroleum Company .................. 5,272,290
9,300 Royal Dutch Petroleum Company (F) .............. 380,184
15,000 Unilever NV .................................... 944,991
22,768 VNU NV ......................................... 660,649
-----------
21,661,304
-----------
SWITZERLAND - 9.4%
130,282 Compagnie Financiere Richemont AG,
A Units ...................................... 1,925,998
69,243 Credit Suisse Group** .......................... 1,654,162
10,686 Holcim Ltd., Class B ........................... 2,005,212
13,613 Nestle SA** .................................... 2,775,275
97,027 Novartis AG .................................... 3,827,396
15,800 Roche Holding AG ............................... 1,005,368
57,025 Swiss Reinsurance Company** .................... 3,725,255
9,371 Swisscom AG** .................................. 2,898,511
706 Synthes-Stratec, Inc. .......................... 445,069
27,956 UBS AG ......................................... 1,326,419
-----------
21,588,665
-----------
GERMANY - 4.5%
6,600 Aixtron AG** ................................... 22,318
11,400 Allianz AG+** .................................. 805,979
18,900 Bayerische Motoren Werke (BMW) AG** ............ 630,042
26,300 DaimlerChrysler AG ............................. 848,254
9,300 Deutsche Bank AG** ............................. 480,963
122,200 Deutsche Telekom AG+ ........................... 1,633,806
13,600 Epcos AG+** .................................... 210,062
24,500 Metro AG** ..................................... 680,555
10,100 Muenchener Rueckversicherungs-
Gesellschaft AG** ............................ 1,008,827
7,600 SAP AG ......................................... 778,626
5,200 SAP AG, Sponsored ADR .......................... 132,652
55,800 Siemens AG ..................................... 2,781,778
39,500 ThyssenKrupp AG** .............................. 404,680
-----------
10,418,542
-----------
CANADA - 3.5%
84,100 Abitibi-Consolidated Inc. ...................... 589,157
14,300 Alcan Inc. ..................................... 418,653
91,400 BCE Inc.** ..................................... 1,806,211
377,100 Bombardier Inc., Class B+ ...................... 912,127
44,800 Suncor Energy Inc. ............................. 736,674
66,100 TELUS Corporation .............................. 889,258
90,800 Thomson Corporation ............................ 2,682,986
-----------
8,035,066
-----------
SHARES VALUE
------ -----
HONG KONG - 2.8% +++
161,000 Cheung Kong Holdings Ltd. ...................... $ 889,739
692,000 Hang Lung Properties Ltd.** .................... 598,921
122,200 Hang Seng Bank Ltd. ............................ 1,210,400
329,000 Hongkong Land Holdings Ltd. .................... 368,480
152,200 Hutchison Whampoa Ltd. ......................... 846,962
736,000 Johnson Electric Holdings Ltd. ................. 792,714
698,000 Li & Fung Ltd. ................................. 783,110
458,000 Shangri-La Asia Ltd.++ ......................... 289,222
72,000 Sung Hung Kai Properties Ltd. .................. 337,888
103,300 Swire Pacific Ltd., Class A .................... 409,278
-----------
6,526,714
-----------
AUSTRALIA - 2.8% +++
100,000 Alumina Ltd. ................................... 272,740
92,400 Australia & New Zealand Banking
Group Ltd. ................................... 1,077,987
25,740 BHP Billiton Ltd. .............................. 145,559
97,100 Brambles Industries Ltd. ....................... 312,816
386,802 Foster's Brewing Group Ltd. .................... 1,084,001
37,000 National Australia Bank Ltd. ................... 752,225
71,932 News Corporation Ltd. .......................... 512,067
96,091 QBE Insurance Group Ltd.++** ................... 513,338
100,000 WMC Resources Ltd.+ ............................ 250,221
173,700 Woolworths Ltd. ................................ 1,403,864
-----------
6,324,818
-----------
SPAIN - 2.7%
16,600 Altadis SA ..................................... 427,764
235,400 Banco Bilbao Vizcaya Argentaria SA ............. 2,369,656
85,300 Industria de Diseno Textil SA (Inditex) ........ 1,700,211
44,800 Repsol YPF SA .................................. 652,471
86,092 Telefonica SA+ ................................. 952,158
-----------
6,102,260
-----------
SINGAPORE - 2.2% +++
114,000 DBS Group Holdings Ltd. ........................ 558,575
135,000 DBS Group Holdings Ltd., ADR++ ................. 661,473
105,000 Singapore Airlines Ltd. ........................ 558,828
64,000 Singapore Press Holdings Ltd. .................. 594,732
618,000 Singapore Technologies Engineering Ltd. ........ 556,885
2,699,880 Singapore Telecommunications Ltd. (F)++ ........ 2,213,902
-----------
5,144,395
-----------
FINLAND - 1.9%
203,300 Nokia Oyj ...................................... 3,439,608
61,400 UPM-Kymmene Oyj ................................ 897,660
-----------
4,337,268
-----------
ITALY - 1.5%
17,600 Assicurazioni Generali SpA ..................... 404,428
212,450 Eni SpA ........................................ 3,027,750
-----------
3,432,178
-----------
See Notes to Financial Statements.
50
PORTFOLIO of INVESTMENTS (continued)
INTERNATIONAL GROWTH FUND
APRIL 30, 2003 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
SWEDEN - 1.4%
100,600 Assa Abloy AB, B Shares** ...................... $ 959,310
99,000 ForeningsSparbanken AB** ....................... 1,343,459
17,000 Sandvik AB ..................................... 432,294
31,500 Svenska Handlesbanken AB, A Shares** ........... 500,634
2,503 Telefonaktiebolaget LM Ericsson,
Sponsored ADR+** ............................. 22,677
-----------
3,258,374
-----------
SOUTH KOREA - 1.4% +++
35,270 Hyundai Motor Company Ltd., GDR++** ............ 416,186
8,976 Samsung Electronics Company Ltd. ............... 2,253,235
4,130 Samsung Electronics Company Ltd., GDR .......... 516,250
-----------
3,185,671
-----------
MEXICO - 1.3%
47,600 America Movil SA de C.V., Series L, ADR .......... 798,252
75,300 Telefonos de Mexico SA de CV, Class L,
Sponsored ADR .................................. 2,274,813
-----------
3,073,065
-----------
NORWAY - 1.1%
27,100 Norsk Hydro ASA** ................................ 1,146,308
19,700 Norske Skogindustrier ASA** ...................... 270,258
152,300 Statoil ASA** .................................... 1,207,906
-----------
2,624,472
-----------
IRELAND - 0.6%
88,260 CRH PLC .......................................... 1,354,375
BRAZIL - 0.6%
25,197 Companhia Vale do Rio Doce, ADR+ ................. 704,508
24,000 Companhia Vale do Rio Doce,
Sponsored ADR................................... 633,600
-----------
1,338,108
-----------
TAIWAN - 0.4% +++
117,244 Taiwan Semiconductor Manufacturing
Company Ltd., Sponsored ADR+ ................... 981,332
-----------
DENMARK - 0.3%
19,500 Novo Nordisk A/S, Class B ........................ 706,413
-----------
CHINA - 0.2% +++
229,500 China Mobile (Hong Kong) Ltd. .................... 460,529
-----------
PORTUGAL - 0.2%
61,000 Portugal Telecom SGPS SA** ....................... 436,375
-----------
NEW ZEALAND - 0.2% +++
140,563 Telecom Corporation of New Zealand Ltd. .......... 376,608
-----------
BELGIUM - 0.2%
63,600 SES GLOBAL, FDR ................................. 372,639
-----------
Total Common Stocks
(Cost $244,792,990)............................. 216,890,327
-----------
SHARES VALUE
------ -----
CONVERTIBLE PREFERRED STOCK - 0.3%
(Cost $718,821)
JAPAN - 0.3% +++
99,000,000 Sumitomo Mitsui Finance (F), Conv. Pfd.,
2.250% due 07/11/2005++ ......................... $ 569,669
-----------
PREFERRED STOCK - 0.2%
(Cost $218,392)
SOUTH KOREA - 0.2% +++
3,360 Samsung Electronics Company Ltd. .................. 412,050
-----------
PRINCIPAL
AMOUNT
---------
CONVERTIBLE BOND - 0.1%
(Cost $252,931)
SWITZERLAND - 0.1%
$ 376,000 Credit Suisse Group Financial,
Conv. Jr. Bond,
6.000% due 12/23/2005............................ 290,124
-----------
SHARES
------
RIGHTS - 0.0% ***
GERMANY - 0.0% ***
5,600 Allianz AG-Rights+ ................................ 46,248
-----------
SPAIN - 0.0% ***
1,563 Telefonica SA-Bonus Rights+ ....................... 17,286
-----------
Total Rights
(Cost $13,677)................................... 63,534
-----------
PRINCIPAL
AMOUNT
-------
REPURCHASE AGREEMENT - 5.2%
(Cost $12,040,000)
$12,040,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003, to be
repurchased at $12,040,361 on
05/01/2003, collateralized by $11,410,735
U.S. Treasury Notes, having various
interest rates and maturities
(Market Value $12,285,900)....................... 12,040,000
------------
TOTAL INVESTMENTS (Cost $258,036,811*) ............. 100.1% 230,265,704
------------
OTHER ASSETS AND LIABILITIES (NET).................. (0.1) (258,498)
------ ------------
NET ASSETS ......................................... 100.0% $230,007,206
====== ============
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $25,543,724 representing 11.0% of the total net
assets of the Fund (Collateral Value $28,528,780).
*** Amount represents less than 0.1% of total net assets.
+ Non-income producing security.
++ Security acquired in a transaction exempt from registration under Rule
144A of the Securities Act of 1933.
+++ Investments in the areas of the Pacific Rim as of April 30, 2003 are 25.5%
of the total net assets of the Fund.
See Notes to Financial Statements.
51
PORTFOLIO of INVESTMENTS (continued)
INTERNATIONAL GROWTH FUND
APRIL 30, 2003 (UNAUDITED)
SCHEDULE OF FORWARD FOREIGN CURRENCY CONTRACTS
FORWARD FOREIGN CURRENCY CONTRACTS TO BUY
CONTRACTS TO RECEIVE
------------------------------------------
NET
UNREALIZED
IN APPRECIATION/
EXPIRATION LOCAL VALUE IN EXCHANGE (DEPRECIATION)
DATE CURRENCY U.S. $ FOR U.S. $ OF CONTRACTS
- ----------- ----------------- ----------- ------------ ---------------
05/01/2003 AUD 178,555 111,695 110,352 $ 1,343
05/01/2003 JPY 61,482,814 515,536 510,973 4,563
05/02/2003 CAD 17,663 12,312 12,274 38
05/02/2003 EUR 20,494 22,872 22,499 373
05/02/2003 JPY 23,648,681 198,295 196,418 1,877
05/05/2003 EUR 49,444 55,180 54,627 553
05/06/2003 EUR 16,907 18,868 18,886 (18)
05/06/2003 JPY 2,535,487 21,260 21,333 (73)
05/21/2003 EUR 1,101,020 1,227,848 1,183,916 43,932
05/27/2003 EUR 2,858,518 3,187,048 3,067,782 119,266
05/27/2003 JPY 363,317,682 3,049,424 3,067,783 (18,359)
06/04/2003 EUR 965,282 1,075,920 1,059,002 16,918
06/09/2003 EUR 886,179 987,587 870,683 116,904
06/27/2003 JPY 113,589,360 955,137 947,288 7,849
07/14/2003 CAD 1,886,698 1,309,343 1,290,140 19,203
07/17/2003 CAD 2,514,544 1,744,733 1,715,616 29,117
09/12/2003 EUR 278,774 309,718 304,465 5,253
09/30/2003 EUR 3,874,943 4,302,738 4,102,405 200,333
10/16/2003 EUR 1,287,154 1,428,570 1,350,237 78,333
------------
$ 627,405
------------
FORWARD FOREIGN CURRENCY CONTRACTS TO SELL
CONTRACTS TO DELIVER
-------------------------------------------
NET
UNREALIZED
IN APPRECIATION/
EXPIRATION LOCAL VALUE IN EXCHANGE (DEPRECIATION)
DATE CURRENCY U.S. $ FOR U.S. $ OF CONTRACTS
- ------------ ----------------- ------------ ----------- ----------------
05/05/2003 HKD 162,976 20,897 20,897 $ 0
05/21/2003 CAD 1,792,021 1,247,597 1,183,923 (63,674)
05/27/2003 EUR 2,858,518 3,187,047 3,063,136 (123,911)
05/27/2003 JPY 363,317,682 3,049,424 3,067,783 18,359
06/04/2003 MXN 11,692,175 1,130,216 1,059,002 (71,214)
06/09/2003 JPY 109,044,345 915,903 870,683 (45,220)
06/27/2003 JPY 113,589,360 955,137 948,000 (7,137)
07/14/2003 CHF 1,781,232 1,316,116 1,290,140 (25,976)
07/17/2003 JPY 204,784,470 1,722,528 1,715,616 (6,912)
09/12/2003 JPY 35,499,060 299,053 304,465 5,412
09/30/2003 JPY 490,955,335 4,138,264 4,102,405 (35,859)
10/16/2003 HKD 10,519,396 1,347,059 1,350,231 3,172
------------
$ (352,960)
------------
Net Unrealized Appreciation of Forward
Foreign Currency Contracts ................................ $ 274,445
============
AS OF APRIL 30, 2003, SECTOR DIVERSIFICATION IS AS FOLLOWS:
% OF
SECTOR DIVERSIFICATION NET ASSETS VALUE
---------------------- ---------- ------
COMMON STOCKS:
Telecommunication Services .......... 13.9% $31,958,997
Banks ............................... 12.0 27,609,181
Pharmaceuticals & Biotechnology ..... 10.0 22,976,241
Materials ........................... 6.1 14,142,081
Energy .............................. 6.1 13,955,448
Capital Goods........................ 5.9 13,587,316
Food, Beverage & Tobacc.............. 5.0 11,424,663
Insurance............................ 4.9 11,169,988
Semiconductors & Semiconductor Equipment 4.5 10,383,158
Media................................ 4.1 9,488,575
Automobiles & Components............. 3.7 8,455,815
Retailing ........................... 2.7 6,306,252
Diversified Financials .............. 2.4 5,587,002
Consumer Durables & Apparel ......... 2.2 5,096,601
Electronic Equipment & Instruments .. 1.9 4,423,667
Real Estate Investment Trusts ....... 1.7 3,859,106
Communications Equipment ............ 1.5 3,462,285
Utilities ........................... 1.1 2,519,858
Other ............................... 4.6 10,484,093
----- ------------
TOTAL COMMON STOCKS ................. 94.3 216,890,327
CONVERTIBLE PREFERRED STOCKS ........ 0.3 569,669
PREFERRED STOCKS .................... 0.2 412,050
CONVERTIBLE BONDS ................... 0.1 290,124
RIGHTS .............................. 0.0*** 63,534
REPURCHASE AGREEMENT ................ 5.2 12,040,000
----- ------------
TOTAL INVESTMENTS ................... 100.1 230,265,704
OTHER ASSETS AND LIABILITIES (NET)... (0.1) (258,498)
----- ------------
NET ASSETS .......................... 100.0% $230,007,206
===== ============
- ---------------------
*** Amount represents less than 0.1% of total net assets.
- --------------------------------------------------------------------------------
GLOSSARY OF TERMS
ADR -- American Depository Receipt
AUD -- Australian Dollar
CAD -- Canadian Dollar
CHF -- Swiss Franc
EUR -- EURO
(F) -- Foreign Shares
FDR -- Fiduciary Depository Receipt
GDR -- Global Depository Receipt
HKD -- Hong Kong Dollar
JPY -- Japanese Yen
MXN -- Mexican Peso
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
52
PORTFOLIO of INVESTMENTS
SHORT TERM INCOME FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
CORPORATE BONDS AND NOTES - 52.8%
REAL ESTATE INVESTMENT TRUSTS/PROPERTY - 8.4%
$ 4,000,000 Duke-Weeks Realty Corporation, Note,
7.375% due 08/01/2007 ......................... $ 4,513,657
3,500,000 Health Care Property Investors Inc.,
Note,
6.875% due 06/08/2005 ......................... 3,745,983
3,000,000 Nationwide Health Properties Inc., Note,
9.750% due 03/20/2008 ......................... 3,531,900
2,750,000 Shurgard Storage Centers Inc., Note,
7.500% due 04/25/2004*** ...................... 2,873,984
1,500,000 Sun Communities Inc., Sr. Note,
7.625% due 05/01/2003 ......................... 1,500,000
-----------
16,165,524
-----------
FINANCIAL SERVICES - 8.4%
CIT Group Inc., Sr. Note:
1,500,000 7.375% due 04/02/2007** ....................... 1,681,522
2,000,000 7.625% due 08/16/2005 ......................... 2,188,954
2,500,000 Goldman Sachs Group, Inc., Note,
4.125% due 01/15/2008** ....................... 2,582,882
Household Finance Corporation, Note:
3,500,000 5.750% due 01/30/2007** ....................... 3,806,422
1,500,000 7.875% due 03/01/2007 ......................... 1,740,771
3,500,000 Rollins Truck Leasing Corporation, Deb.,
8.375% due 02/15/2007*** ...................... 4,093,366
-----------
16,093,917
-----------
BANKS - 5.8%
3,000,000 J.P. Morgan Chase & Company, Note,
5.350% due 03/01/2007** ....................... 3,257,658
3,500,000 MBNA America Bank N.A., Note,
6.500% due 06/20/2006 ......................... 3,818,787
1,000,000 Northern Trust Company, Sub. Note,
6.500% due 05/01/2003 ......................... 1,000,000
3,000,000 Wachovia Corporation, Sr. Unsub. Note,
6.700% due 06/21/2004 ......................... 3,171,912
-----------
11,248,357
-----------
TELECOMMUNICATIONS - 4.6%
3,250,000 Deutsche Telekom International Finance BV,
Company Guarantee,
8.250% due 06/15/2005 ......................... 3,612,541
1,500,000 TELUS Corporation, Note,
7.500% due 06/01/2007 ......................... 1,672,500
3,500,000 Verizon Global Funding Corporation, Note,
4.000% due 01/15/2008 ......................... 3,584,462
-----------
8,869,503
-----------
UTILITIES - 4.2%
4,000,000 Constellation Energy Group, Inc., Note,
6.350% due 04/01/2007 .......................... 4,429,252
2,750,000 Texas-New Mexico Power Company, Sr. Note,
6.250% due 01/15/2009 .......................... 2,685,460
1,000,000 United Illuminating Company, Note,
6.000% due 12/15/2003 .......................... 1,021,291
-----------
8,136,003
-----------
PRINCIPAL
AMOUNT VALUE
--------- -----
INFORMATION TECHNOLOGY - 2.8%
$ 2,000,000 Analog Devices, Inc., Conv. Sub. Note,
4.750% due 10/01/2005*** ...................... $ 2,035,000
3,000,000 Computer Science Corporation, Note,
6.750% due 06/15/2006 ......................... 3,351,408
-----------
5,386,408
-----------
CABLE TV - 2.2%
4,000,000 AOL Time Warner Inc., Note,
6.150% due 05/01/2007** ....................... 4,315,996
-----------
AIRLINES - 2.2%
4,000,000 Southwest Airlines Company, Pass-thru
Certificates,
5.496% due 11/01/2006 ......................... 4,292,135
-----------
AUTO MANUFACTURING & PARTS - 2.1%
4,000,000 Ford Motor Credit Company, Note,
6.500% due 01/25/2007** ....................... 4,092,124
-----------
MEDIA - 2.1%
4,000,000 Cox Enterprises, Inc., Note,
4.375% due 05/01/2008++ ....................... 4,067,764
-----------
PAPER/FOREST PRODUCTS - 2.0%
3,500,000 Weyerhaeuser Company, Note,
6.000% due 08/01/2006 ......................... 3,796,236
-----------
SERVICES - 1.9%
3,500,000 PHH Corporation, Note,
6.000% due 03/01/2008 ......................... 3,672,785
-----------
PIPELINES - 1.6%
3,000,000 El Paso Natural Gas Company, Note,
6.750% due 11/15/2003*** ...................... 3,022,500
-----------
INDUSTRIAL PRODUCTS - 1.2%
2,000,000 Sealed Air Corporation, Company Guarantee,
8.750% due 07/01/2008++ ....................... 2,350,868
-----------
FOOD - 1.2%
2,000,000 ConAgra Inc., Sr. Note,
9.875% due 11/15/2005 ......................... 2,350,444
-----------
AEROSPACE/DEFENSE - 1.1%
2,000,000 Boeing Capital Corporation, Sr. Note,
5.650% due 05/15/2006 ......................... 2,144,290
-----------
HEALTH CARE - 0.7%
2,000,000 Athena Neurosciences Finance LLC,
Company Guarantee,
7.250% due 02/21/2008 .......................... 1,410,000
-----------
RETAIL - 0.3%
500,000 Federated Department Stores Inc., Bond,
6.790% due 07/15/2027 ......................... 525,886
-----------
Total Corporate Bonds and Notes
(Cost $96,781,806) ............................ 101,940,740
-----------
See Notes to Financial Statements.
53
PORTFOLIO of INVESTMENTS (continued)
SHORT TERM INCOME FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
ASSET-BACKED SECURITIES - 4.7%
FFCA Secured Lending Corporation:
$ 3,442,122 Series 1999-1A , Class A1A,
6.370% due 10/18/2008++ ........................ $ 3,665,796
2,309,128 Series 1999-2, Class WA1A,
7.130% due 02/18/2009++ ........................ 2,332,219
2,947,221 GMAC Mortgage Corporation Loan Trust,
Series 2002-HE2, Class A3,
5.290% due 06/25/2027++ ........................ 2,979,145
120,478 Green Tree Financial Corporation,
Series 1995-6, Class B1,
7.700% due 09/15/2026 .......................... 85,189
-----------
Total Asset-Backed Securities
(Cost $8,812,963) .............................. 9,062,349
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 13.2%
Federal Home Loan Bank, Bond:
4,000,000 1.625% due 04/15/2005 .......................... 4,001,984
4,000,000 2.500% due 12/15/2005** ........................ 4,051,880
Federal Home Loan Mortgage Corporation:
3,500,000 Bond,
3.250% due 02/25/2008** ........................ 3,536,942
Note:
2,000,000 4.250% due 06/15/2005** 2,105,996
4,000,000 6.875% due 01/15/2005** 4,359,428
Federal National Mortgage Association, Note:
4,000,000 4.250% due 07/15/2007 .......................... 4,240,108
3,000,000 5.500% due 02/15/2006** ........................ 3,278,733
-----------
Total U.S. Government Agency Obligations
(Cost $24,683,764) ............................. 25,575,071
-----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 7.2%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 4.1%
4,862,586 4.670% due 11/01/2032 ............................ 4,991,117
2,478,306 6.500% due 01/01/2012-01/01/2014.................. 2,631,679
114,560 8.500% due 11/01/2017 ............................ 125,819
63,990 10.000% due 05/01/2022 ........................... 73,488
-----------
Total FNMAs
(Cost $7,690,929) .............................. 7,822,103
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) - 2.6%
4,696,034 6.000% due 04/01/2017-05/01/2017 4,907,960
67,442 9.500% due 08/01/2016 75,184
-----------
Total FHLMCs
(Cost $4,864,242) .............................. 4,983,144
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 0.3%
19,947 8.000% due 03/15/2012 ............................ 21,569
28,150 9.000% due 04/20/2025 ............................ 31,183
225,079 10.000% due 01/15/2019-02/15/2019 ................ 259,730
279,091 11.000% due 02/15/2010-08/15/2020 ................ 326,085
-----------
Total GNMAs
(Cost $596,643) ................................ 638,567
-----------
PRINCIPAL
AMOUNT VALUE
--------- -----
ADJUSTABLE RATE MORTGAGE-BACKED SECURITIES (ARMS) - 0.2%
$ 102,134 Federal Home Loan Mortgage Corporation
(FHLMC),
4.732% due 11/01/2021+ ......................... $ 105,553
Federal National Mortgage Association
(FNMA):
36,407 4.125% due 11/01/2021+ ......................... 37,079
9,867 4.290% due 11/01/2022+ ......................... 10,043
141,750 4.974% due 11/01/2035+ ......................... 145,297
63,026 5.580% due 04/01/2019+ ......................... 64,883
63,041 5.671% due 01/01/2019+ ......................... 65,327
-----------
Total ARMSs
(Cost $426,512) ................................ 428,182
-----------
Total U.S. Government Agency Mortgage-
Backed Securities
(Cost $13,578,326) ............................. 13,871,996
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO) - 7.0%
2,783,672 Deutsche Mortgage Securities, Inc., Series
2002-1, Class A13,
8.500% due 12/01/2032 .......................... 2,916,666
4,430,008 Federal Home Loan Mortgage Corporation,
Series 2586, Class LT,
3.500% due 03/15/2033 .......................... 4,441,553
5,000,000 Federal National Mortgage Association,
Series 2002-58, Class HB,
5.500% due 11/25/2015 .......................... 5,299,525
7,962 Norwest Asset Securities Corporation, Series
1994-4, Class A1,
6.500% due 03/26/2029 .......................... 7,974
767,989 Residential Funding Mortgage Security I,
Series 1999-S3, Class A1,
6.500% due 01/25/2029 .......................... 771,756
-----------
Total CMOs
(Cost $13,419,664) ............................. 13,437,474
-----------
U.S. TREASURY NOTES - 3.4%
1,500,000 6.000% due 08/15/2004** .......................... 1,592,227
5,000,000 1.500% due 02/28/2005** .......................... 5,008,205
-----------
Total U.S. Treasury Notes
(Cost $6,545,887) .............................. 6,600,432
-----------
COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) - 1.6%
2,198,803 GMAC Commercial Mortgage Securities
Inc., Series 1999-CTL1, Class A,
7.150% due 12/15/2016++ ........................ 2,392,538
598,481 Morgan Stanley Capital I, Series 1999-
CAMI, Class A1,
6.540% due 04/15/2004 .......................... 614,577
-----------
Total CMBSs
(Cost $2,794,947) .............................. 3,007,115
-----------
See Notes to Financial Statements.
54
PORTFOLIO of INVESTMENTS (continued)
SHORT TERM INCOME FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
REPURCHASE AGREEMENT - 9.7%
(Cost $18,736,000)
$18,736,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003, to be
repurchased at $18,736,562 on
05/01/2003, collateralized by $17,756,772
U.S. Treasury Notes, having various
interest rates and maturities
(Market Value $19,118,657) ................... $ 18,736,000
------------
TOTAL INVESTMENTS (Cost $185,353,357*) ................ 99.6% 192,231,177
OTHER ASSETS AND LIABILITIES (NET) .................... 0.4 733,811
---- ------------
NET ASSETS ............................................ 100.0% $192,964,988
===== ============
- --------------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $27,625,487 representing 14.3% of the total net
assets of the Fund (Collateral Value $28,453,431).
*** Security segregated as collateral for futures contract.
+ Variable rate security. The interest rate shown reflects the rate in
effect at April 30, 2003.
++ Security acquired in a transaction exempt from registration under Rule
144A of the Securities Act of 1933.
NUMBER OF UNREALIZED
CONTRACTS VALUE DEPRECIATION
--------- ----- ------------
FUTURES CONTRACTS-SHORT POSITION
100 U.S. 5 Year Treasury Note,
June 2003 ............ $11,375,000 $ (38,281)
============
- --------------------------------------------------------------------------------
GLOSSARY OF TERMS
MTN -- Medium Term Note
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
55
PORTFOLIO of INVESTMENTS
U.S. GOVERNMENT SECURITIES FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 70.7%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 34.7%
$14,934,503 4.500% due 03/01/2018 ............. $ 15,167,188
15,958,581 5.000% due 04/01/2018 ............. 16,494,690
52,393,828 5.500% due 02/01/2009-02/01/2033 .. 54,318,662
98,236,798 6.000% due 12/01/2016-10/01/2032 .. 102,687,440
127,703,936 6.500% due 09/01/2024-12/01/2032 .. 133,616,672
3,174,541 6.820% due 02/01/2011 ............. 3,523,659
10,308,646 7.000% due 06/01/2010-07/01/2029 .. 10,999,195
10,183,423 7.500% due 12/01/2024-02/01/2030 .. 10,910,388
924,469 8.000% due 05/01/2022-01/01/2025 .. 997,029
131,210 8.500% due 02/01/2023-09/01/2025 .. 142,437
2,509,079 9.000% due 06/01/2016-09/01/2030 .. 2,726,078
------------
Total FNMAs
(Cost $342,757,243) ............. 351,583,438
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) - 28.3%
14,934,053 5.000% due 02/01/2033 ............. 15,042,608
19,374,094 5.500% due 11/01/2032 ............. 19,949,404
94,945,594 6.000% due 04/01/2017-11/01/2032** 99,000,852
82,986,736 6.500% due 02/01/2011-01/01/2032 .. 87,136,991
42,378,359 7.000% due 07/01/2024-04/01/2032** 44,740,090
14,653,187 7.500% due 12/01/2006-02/01/2031 .. 15,717,473
1,718,304 8.000% due 12/01/2030 ............. 1,855,615
2,151,183 8.500% due 04/01/2019-07/01/2029 .. 2,317,237
185,382 8.750% due 01/01/2013 ............. 195,179
284,954 9.000% due 12/01/2008-08/01/2022 .. 313,280
113,380 9.500% due 06/01/2016-05/01/2017 .. 126,235
------------
Total FHLMCs
(Cost $281,153,192) ............. 286,394,964
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 7.7%
17,504,951 6.000% due 04/20/2026-05/20/2032** 18,282,871
21,448,480 6.500% due 03/15/2024-07/15/2032** 22,525,354
944,886 6.800% due 04/20/2025 ............. 1,000,580
14,507,781 7.000% due 07/15/2008-06/20/2031** 15,397,254
11,454,379 7.500% due 03/15/2024-11/15/2029 12,244,581
965,279 7.750% due 12/15/2029 ............. 1,040,613
2,659,334 8.000% due 04/15/2022-06/20/2030 2,858,393
325,338 8.500% due 05/15/2022 ............. 357,485
1,586,149 9.000% due 11/15/2021 ............. 1,772,046
2,486,983 9.500% due 04/15/2016-08/15/2021 .. 2,807,111
15,125 13.500% due 09/15/2014-12/15/2014 . 18,465
------------
Total GNMAs
(Cost $74,092,718) .............. 78,304,753
------------
ADJUSTABLE RATE MORTGAGE-BACKED SECURITIES
(ARMS) - 0.0% ***
(Cost $370,680)
370,050 Federal National Mortgage Association
(FNMA),
5.763% due 03/01/2028+ .......... 379,508
------------
Total U.S. Government Agency Mortgage-
Backed Securities
(Cost $698,373,833) ............. 716,662,663
------------
PRINCIPAL
AMOUNT VALUE
--------- -----
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO) - 8.0%
Federal Home Loan Mortgage Corporation:
$ 507,406 Series 1049, Class F,
2.275% due 02/15/2021+ .......... $ 510,935
3,018,809 Series 1638, Class K,
6.500% due 03/15/2023 .......... 3,040,419
2,000,000 Series 1652, Class PL,
7.000% due 01/15/2024 .......... 2,177,337
5,714,289 Series 1981, Class C,
6.500% due 08/15/2027 .......... 5,987,058
2,321,830 Series 2073, Class VA,
6.500% due 12/15/2005 .......... 2,352,924
10,000,000 Series 2435, Class GE,
6.500% due 06/15/2031 .......... 10,723,183
12,121,796 Series 2481, Class VC,
6.000% due 06/15/2017 .......... 12,698,546
Federal National Mortgage Association:
7,000,000 Grantor Trust, Series 2000-T5, Class B,
7.300% due 05/25/2010 .......... 8,454,307
19,509,000 Series 2002-16, Class TM,
7.000% due 04/25/2032 .......... 21,358,685
2,089,734 Trust 259 STRIP,
7.000% due 04/01/2024 .......... 254,796
Federal National Mortgage Association,
REMIC, Pass-through Certificates:
271,773 Series 1989-18, Class C,
9.500% due 04/25/2004 .......... 278,637
433,427 Series 1990-49, Class G,
9.000% due 05/25/2020 .......... 471,061
587,786 Series 1992-83, Class X,
7.000% due 02/25/2022 .......... 597,326
926,399 Series 1993-162, Class E,
6.000% due 08/25/2023 .......... 963,503
480,351 Series 1997-32, Class FA,
1.975% due 04/25/2027+ .......... 483,054
2,532,358 Series 2000-31, Class PC,
7.500% due 08/25/2029 .......... 2,553,775
7,322,937 Government National Mortgage Association,
Series 2000-16, Class PB,
7.500% due 02/16/2028 ........... 7,682,244
210,217 L.F. Rothschild Mortgage Trust, Series 3,
Class Z,
9.950% due 09/01/2017 ........... 241,973
------------
Total CMOs
(Cost $78,080,329) .............. 80,829,763
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 6.3%
Federal Home Loan Bank, Bond:
6,000,000 6.500% due 08/14/2009 ........... 7,053,360
7,000,000 7.375% due 02/12/2010** ......... 8,588,552
10,000,000 Federal Home Loan Mortgage Corporation,
Sub. Note,
5.875% due 03/21/2011** ......... 11,104,250
See Notes to Financial Statements.
56
PORTFOLIO of INVESTMENTS (continued)
U.S. GOVERNMENT SECURITIES FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
Federal National Mortgage Association:
Bond:
$10,000,000 3.250% due 01/15/2008** ......... $10,141,450
5,000,000 6.250% due 05/15/2029 ........... 5,709,740
1,250,000 Deb.,
6.210% due 08/06/2038 ........... 1,445,047
7,500,000 Note,
6.000% due 05/15/2008** ......... 8,519,828
10,000,000 Sub. Note,
6.250% due 02/01/2011** ......... 11,340,010
------------
Total U.S. Government Agency Obligations
(Cost $57,184,523) .............. 63,902,237
------------
U.S. TREASURY BONDS - 5.5%
5,000,000 3.500% due 11/15/2006** ........... 5,213,675
16,000,000 3.625% due 03/31/2004** ........... 16,366,880
9,000,000 5.000% due 08/15/2011** ........... 9,857,817
13,000,000 5.875% due 11/15/2004** ........... 13,901,368
8,250,000 7.250% due 08/15/2022** ........... 10,821,360
------------
Total U.S. Treasury Bonds
(Cost $53,485,215) .............. 56,161,100
------------
PRINCIPAL
AMOUNT VALUE
--------- -----
REPURCHASE AGREEMENT - 8.6%
(Cost $87,153,000)
$87,153,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003, to be
repurchased at $87,155,615 on
05/01/2003, collateralized by $82,597,992
U.S. Treasury Notes, having various
interest rates and maturities
(Market Value $88,32,979) ....... $ 87,153,000
--------------
TOTAL INVESTMENTS (Cost $974,276,900*) ... 99.1% 1,004,708,763
OTHER ASSETS AND LIABILITIES (NET) ....... 0.9 8,785,398
----- --------------
NET ASSETS ............................... 100.0% $1,013,494,161
====== ==============
- --------------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $145,066,643 representing 14.3% of the total net
assets of the Fund (Collateral Value $149,724,191).
*** Amount represents less than 0.1% of total net assets.
+ Variable rate security. The interest rate shown reflects the rate in
effect at April 30, 2003.
- --------------------------------------------------------------------------------
GLOSSARY OF TERMS
REMIC -- Real Estate Mortgage Investment Conduit
STRIP -- Separate trading of registered interest and
principal of securities
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
57
PORTFOLIO of INVESTMENTS
INCOME FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
CORPORATE BONDS AND NOTES - 64.9%
FINANCIAL SERVICES/BANKS - 8.7%
$ 175,000 Abbey National First Capital BV,
Sub. Note,
8.200% due 10/15/2004 ............ $ 190,186
1,500,000 Aetna Inc., Company Guarantee,
7.625% due 08/15/2026 ............ 1,791,087
400,000 Banc One Corporation, Sub. Note,
10.000% due 08/15/2010 ........... 531,274
5,000,000 Bank of America Corporation, Sub. Note,
7.800% due 02/15/2010 ............ 6,089,785
1,000,000 BankAmerica Corporation, Sub. Note,
6.625% due 08/01/2007 ............ 1,136,538
690,000 BB&T Corporation, Sub. Note,
7.250% due 06/15/2007 ............ 792,586
2,500,000 CIT Group Inc., Sr. Note,
7.750% due 04/02/2012 ............ 2,903,748
10,000,000 Citigroup, Inc., Note,
6.500% due 01/18/2011 ............ 11,450,050
1,100,000 First Interstate Bancorp, Sub. Note,
9.125% due 02/01/2004 ............ 1,161,195
1,000,000 First Nationwide Bank, Sub. Deb.,
10.000% due 10/01/2006 ........... 1,207,340
995,000 Fleet Financial Group, Inc., Sub. Deb.,
6.875% due 01/15/2028 ............ 1,107,579
10,000,000 Goldman Sachs Group, Inc., Bond,
6.875% due 01/15/2011 ............ 11,515,130
7,500,000 Jefferies Group, Inc., Sr. Note,
7.750% due 03/15/2012 ............ 8,073,413
1,250,000 Kemper Corporation, Note,
6.875% due 09/15/2003 ............ 1,273,604
1,000,000 Key Bank NA, Sub. Deb.,
6.950% due 02/01/2028 ............ 1,120,829
3,000,000 Legg Mason, Inc., Sr. Note,
6.750% due 07/02/2008 ............ 3,360,918
MBNA Corporation:
3,000,000 Note,
6.250% due 01/17/2007** .......... 3,229,314
2,000,000 Sr. Note,
7.500% due 03/15/2012** .......... 2,280,022
Merrill Lynch & Company Inc., Note:
5,000,000 6.000% due 02/17/2009 ............ 5,537,970
1,450,000 6.500% due 07/15/2018 ............ 1,624,925
2,000,000 6.750% due 06/01/2028 ............ 2,137,340
7,500,000 Morgan Stanley Dean Witter & Company,
Unsub. Note,
6.750% due 04/15/2011 ............ 8,534,730
670,000 NationsBank Corporation, Sub. Note,
6.800% due 03/15/2028** .......... 771,805
1,000,000 Norwest Bancorp, Sub. Deb.,
6.650% due 10/15/2023 ............ 1,111,963
Paine Webber Group, Inc., Sr. Note:
415,000 7.390% due 10/16/2017 ............ 479,214
830,000 8.060% due 01/17/2017 ............ 1,008,785
500,000 PNC Institute Capital B,
Company Guarantee,
8.315% due 05/15/2027+ ........... 582,558
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 1,750,000 SB Treasury Company LLC, Bond,
9.400% to 06/30/2008;
10.925% due 12/29/2049+ $ 1,890,000
-----------
82,893,888
-----------
OIL & GAS - 7.7%
1,600,000 Burlington Resources Inc., Deb.,
9.125% due 10/01/2021 ........... 2,133,968
7,500,000 Consolidated Natural Gas Company,
Sr. Note,
6.850% due 04/15/2011 ........... 8,629,702
10,000,000 El Paso Natural Gas Company, Deb.,
7.500% due 11/15/2026 ........... 9,450,000
5,357,000 Express Pipeline LP, Sub. Note,
7.390% due 12/31/2017+ .......... 5,698,777
3,000,000 PDVSA Finance Ltd.,
Sr. Note,
9.750% due 02/15/2010 ........... 2,647,500
8,470,000 PDVSA Finance Ltd., Note,
8.500% due 11/16/2012 ........... 6,966,575
8,500,000 Petro-Canada, Deb.,
9.250% due 10/15/2021 ........... 11,384,441
8,000,000 Petrobras International
Finance Company, Sr. Note,
9.750% due 07/06/2011 ........... 8,300,000
Southern Natural Gas Company,
Sr. Note:
4,000,000 8.000% due 03/01/2032 ........... 4,110,000
1,000,000 8.875% due 03/15/2010+ .......... 1,110,000
2,000,000 Tennessee Gas Pipeline Company, Bond,
8.375% due 06/15/2032 ........... 2,070,000
4,500,000 Tesoro Petroleum Corporation,
Sr. Note,
8.000% due 04/15/2008+ .......... 4,680,000
5,750,000 Trans-Canada Pipeline Corporation,
Deb.,
8.500% due 03/20/2023 ........... 6,008,503
-----------
73,189,466
-----------
UTILITIES - 6.7%
5,000,000 Arizona Public Service Company, Note,
6.500% due 03/01/2012 ........... 5,517,395
5,000,000 Constellation Energy Group, Inc., Note,
7.000% due 04/01/2012** ......... 5,755,980
10,000,000 Dominion Resources, Inc., Sr. Note,
5.000% due 03/15/2013** ......... 10,094,000
Illinois Power Company, First Mortgage:
5,500,000 7.500% due 06/15/2009** ......... 5,472,500
1,000,000 11.500% due 12/15/2010+ ......... 1,125,000
1,332,000 Niagara Mohawk Power Corporation, Deb.,
8.770% due 01/01/2018 ........... 1,387,389
5,000,000 Ohio Power Company, Bond,
5.500% due 02/15/2013+ .......... 5,280,175
Oncor Electric Delivery Company, Deb.:
1,000,000 5.000% due 09/01/2007 ........... 1,058,607
8,000,000 7.000% due 09/01/2022 ........... 8,833,896
5,000,000 Sempra Energy, Note,
6.000% due 02/01/2013 ........... 5,347,520
6,500,000 Southwestern Electric Power Company, Note,
5.375% due 04/15/2015 ........... 6,654,966
See Notes to Financial Statements.
58
PORTFOLIO of INVESTMENTS (continued)
INCOME FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
CORPORATE BONDS AND NOTES (CONTINUED)
UTILITIES (CONTINUED)
$ 6,845,000 Texas-New Mexico Power Company,
Sr. Note,
6.250% due 01/15/2009 ........... $ 6,684,355
1,000,000 WPD Holdings UK, Jr. Note,
6.750% due 12/15/2004+ .......... 1,042,902
-----------
64,254,685
-----------
INFORMATION TECHNOLOGY - 6.6%
9,750,000 Adaptec, Inc., Conv. Sub. Note,
4.750% due 02/01/2004**........... 9,750,000
12,000,000 Analog Devices, Inc., Conv. Sub. Note,
4.750% due 10/01/2005 ........... 12,210,000
5,000,000 BEA Systems Inc., Conv. Sub. Note,
4.000% due 12/15/2006 ........... 4,762,500
8,750,000 Conexant Systems Inc., Conv. Sub. Note,
4.000% due 02/01/2007 ........... 5,381,250
5,000,000 Extreme Networks, Inc., Conv. Sub. Note,
3.500% due 12/01/2006 ........... 4,268,750
7,500,000 LSI Logic Corporation, Conv. Sub. Note,
4.000% due 02/15/2005 ........... 7,021,875
3,900,000 RadiSys Corporation, Conv. Sub. Note,
5.500% due 08/15/2007 ........... 3,436,875
3,000,000 Siebel Systems Inc., Conv. Sub. Note,
5.500% due 09/15/2006 ........... 3,026,250
11,250,000 TriQuint Semiconductor, Inc.,
Conv. Sub. Note,
4.000% due 03/01/2007** ......... 9,421,875
4,000,000 Vitesse Semiconductor Corporation,
Conv. Sub. Deb.,
4.000% due 03/15/2005 ........... 3,575,000
-----------
62,854,375
-----------
HEALTH CARE - 5.7%
4,500,000 Aetna Inc., Sr. Note,
7.375% due 03/01/2006 ........... 5,002,438
1,500,000 American Home Products Corporation, Deb.,
7.250% due 03/01/2023 ........... 1,757,031
10,000,000 Cardinal Health, Inc., Note,
6.750% due 02/15/2011 ........... 11,662,070
7,000,000 DVI, Inc., Sr. Note,
9.875% due 02/01/2004 ........... 6,510,000
5,000,000 HCA Inc. Sr. Note,
6.950% due 05/01/2012 ........... 5,385,650
4,850,000 HIH Capital Ltd., Conv. Note,
7.500% due 09/25/2006 ........... 3,298,000
7,350,000 IVAX Corporation, Conv. Sr. Sub. Note,
4.500% due 05/15/2008 ........... 6,844,688
2,000,000 Omnicare, Inc., Conv. Sub. Deb.,
5.000% due 12/01/2007 ........... 2,027,500
12,000,000 Tenet Healthcare Corporation, Sr. Note,
6.375% due 12/01/2011 ........... 11,460,000
-----------
53,947,377
-----------
CONSUMER PRODUCTS/SERVICES - 5.4%
1,000,000 Allied Waste North America Inc., Sr. Note,
7.875% due 04/15/2013** 1,045,000
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 4,000,000 Cendant Corporation, Note,
6.875% due 08/15/2006** ......... $ 4,377,344
5,000,000 ConAgra, Inc., Sr. Note,
7.125% due 10/01/2026 ........... 5,795,795
350,000 CPC International, Inc., Note,
6.150% due 01/15/2006 ........... 384,249
3,650,000 International Speedway Corporation,
Company Guarantee,
7.875% due 10/15/2004 ........... 3,876,687
1,000,000 Mattel Inc., Note,
7.300% due 06/13/2011 ........... 977,993
1,750,000 Mattel, Inc., Note,
6.125% due 07/15/2005 ........... 1,795,602
10,000,000 Reed Elsevier Capital, Company Guarantee,
6.750% due 08/01/2011** ......... 11,302,120
Royal Caribbean Cruises Ltd.:
2,000,000 Deb.,
7.250% due 03/15/2018 ........... 1,740,000
3,000,000 Sr. Note,
8.750% due 02/02/2011 .......... 3,060,000
9,825,000 S3 Inc., Conv. Sub. Note, (in default),
5.750% due 10/01/2003 .......... 147,375
6,500,000 Sealed Air Corporation, Company Guarantee,
8.750% due 07/01/2008+** ........ 7,640,321
USA Waste Services, Inc., Sr. Note:
1,000,000 7.000% due 07/15/2028 ........... 1,110,107
495,000 7.125% due 10/01/2007 ........... 560,413
Waste Management Inc.:
3,450,000 Company Guarantee,
6.875% due 05/15/2009 ........... 3,943,195
3,500,000 Sr. Note,
7.375% due 08/01/2010** ......... 4,086,600
-----------
51,842,801
-----------
TRANSPORTATION/AUTO - 4.3%
Burlington Northern Santa Fe:
5,000,000 Deb.,
8.125% due 04/15/2020 ........... 6,135,405
1,500,000 Note,
8.750% due 02/25/2022 ........... 1,956,016
3,030,000 Consolidated Rail Corporation, Deb.,
9.750% due 06/15/2020 ........... 4,111,677
2,000,000 Ford Holdings Inc., Company Guarantee,
9.300% due 03/01/2030 ........... 2,042,490
Ford Motor Company, Deb.:
825,000 7.400% due 11/01/2046 ........... 684,144
3,750,000 8.900% due 01/15/2032 ........... 3,743,340
5,000,000 Ford Motor Credit Company, Sr. Note,
5.800% due 01/12/2009 ........... 4,765,075
8,000,000 General Motors Corporation, Deb.,
9.400% due 07/15/2021 ........... 8,975,280
5,000,000 Norfolk Southern Corporation, Sr. Note,
6.200% due 04/15/2009 ........... 5,605,835
See Notes to Financial Statements.
59
PORTFOLIO of INVESTMENTS (continued)
INCOME FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
CORPORATE BONDS AND NOTES (CONTINUED)
TRANSPORTATION/AUTO (CONTINUED)
United Air Lines Inc.:
$ 5,000,000 Equipment Trust Certificates,
(in default),
10.850% due 07/05/2014 ......... $ 1,175,000
Pass-through Certificates,
(in default):
3,000,000 9.080% due 10/26/2015 ........... 595,485
5,500,000 9.560% due 10/19/2018 ........... 1,318,103
-----------
41,107,850
-----------
REAL ESTATE INVESTMENT TRUSTS - 3.5%
2,000,000 American Health Properties, Inc., Note,
7.500% due 01/15/2007 .......... 2,225,586
Franchise Finance Corporation:
3,000,000 MTN,
7.070% due 01/15/2008 ........... 3,478,989
1,100,000 Sr. Note,
7.875% due 11/30/2005 ........... 1,224,861
1,000,000 Health Care Property Investors Inc.,
Note,
6.875% due 06/08/2005 ........... 1,070,281
Health Care Property Investors, Inc.:
1,750,000 Note,
6.000% due 03/01/2015 ........... 1,753,216
Sr. Note:
3,000,000 6.450% due 06/25/2012** ......... 3,128,316
1,000,000 6.500% due 02/15/2006 ......... 1,061,284
7,500,000 Healthcare Realty Trust, Inc., Sr. Note,
8.125% due 05/01/2011 ........... 8,159,895
Nationwide Health Properties Inc., Note:
1,500,000 7.060% due 12/05/2006 ........... 1,623,465
8,500,000 9.750% due 03/20/2008 ........... 10,007,050
-----------
33,732,943
-----------
TELECOMMUNICATIONS - 3.4%
5,000,000 Deutsche Telephone Finance, Bond,
8.500% due 06/15/2010 ........... 6,036,720
8,000,000 Qwest Corporation, Note,
8.875% due 03/15/2012+ .......... 8,800,000
7,000,000 TELUS Corporation, Note,
8.000% due 06/01/2011 ........... 7,945,000
8,000,000 Vodafone Group, PLC, Note,
7.750% due 02/15/2010 ........... 9,681,408
-----------
32,463,128
-----------
MEDIA - 3.2%
Comcast Cable Communications Inc.:
550,000 Note,
6.200% due 11/15/2008** ......... 606,947
7,000,000 Sr. Note,
7.125% due 06/15/2013 ........... 7,955,409
7,500,000 Cox Communications Inc., Note,
7.875% due 08/15/2009 ........... 9,017,347
2,000,000 Dex Media East, LLC, Sr. Sub. Note,
12.125% due 11/15/2012+** ....... 2,390,000
4,000,000 Getty Images, Inc., Conv. Sub. Note,
5.000% due 03/15/2007 ........... 3,910,000
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 5,260,000 Time Warner Inc., Deb.,
9.150% due 02/01/2023 ........... $ 6,395,797
-----------
30,275,500
-----------
GAMING - 2.8%
5,000,000 Circus Circus Enterprise Inc., Deb.,
7.000% due 11/15/2036 ........... 4,991,260
3,500,000 Harrah's Operating Company Inc.,
Company Guarantee,
8.000% due 02/01/2011 ........... 4,030,796
3,000,000 Mandalay Resort Group, Sr. Sub. Note,
Series B,
10.250% due 08/01/2007** ........ 3,330,000
Park Place Entertainment Corporation,
Sr. Note:
1,500,000 7.500% due 09/01/2009** ......... 1,601,250
5,000,000 8.500% due 11/15/2006 ........... 5,437,500
7,500,000 Riviera Holdings Corporation, Company
Guarantee,
11.000% due 06/15/2010 .......... 7,087,500
-----------
26,478,306
-----------
INDEX PRODUCT - 1.7%
14,700,000 J.P. Morgan HYDIsm November 15, 2007,
Credit-Linked Trust Certificates,
8.750% due 11/15/2007+** ........ 15,857,625
-----------
AEROSPACE/DEFENSE - 1.4% Lockheed Martin Corporation:
955,000 Company Guarantee,
7.750% due 05/01/2026** ......... 1,175,075
5,000,000 Note,
8.200% due 12/01/2009 ........... 6,213,740
Loral Corporation, Deb.:
1,000,000 7.625% due 06/15/2025 ........... 1,196,228
1,000,000 8.375% due 06/15/2024 ........... 1,274,107
3,800,000 Orbital Sciences Corporation,
Company Guarantee, Series B,
12.000% due 08/15/2006 .......... 3,961,500
-----------
13,820,650
-----------
INDUSTRIAL PRODUCTS - 1.4%
5,000,000 Champion International Corporation, Deb.,
7.200% due 11/01/2026 ........... 5,784,075
500,000 Crane Company, Note,
8.500% due 03/15/2004 ........... 529,504
250,000 Lennar Corporation, Sr. Note,
7.625% due 03/01/2009** ......... 290,380
5,850,000 Ogden Corporation, Deb., (in default),
9.250% due 03/01/2022 ........... 3,246,750
Weyerhaeuser Company:
1,500,000 Deb.,
7.375% due 03/15/2032 ........... 1,716,638
1,500,000 Note,
6.750% due 03/15/2012 ........... 1,683,234
-----------
13,250,581
-----------
See Notes to Financial Statements.
60
PORTFOLIO of INVESTMENTS (continued)
INCOME FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
CORPORATE BONDS AND NOTES (CONTINUED)
RETAIL - 1.3%
$ 5,000,000 Fred Meyer Inc., Company Guarantee,
7.450% due 03/01/2008 ........... $ 5,726,920
5,000,000 Safeway Inc., Note,
7.500% due 09/15/2009** ......... 5,845,325
866,000 Saks Inc., Company Guarantee,
8.250% due 11/15/2008 ........... 939,610
-----------
12,511,855
-----------
FOREIGN GOVERNMENT (U.S. DOLLAR DENOMINATED) - 1.1%
4,925,640 Federative Republic of Brazil, C-Bond,
8.000% due 04/15/2014** ........ 4,339,760
5,000,000 United Mexican States, Bond,
9.875% due 02/01/2010 ........... 6,382,500
-----------
10,722,260
-----------
Total Corporate Bonds and Notes
(Cost $587,937,966) ............. 619,203,290
-----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 19.8%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) - 9.0%
36,310,099 5.500% due 11/01/2017-05/01/2031 37,678,422
20,393,464 6.000% due 03/01/2031-05/01/2032 21,242,968
19,144,995 6.500% due 01/01/2029-08/01/2029** 20,008,922
6,473,351 7.000% due 01/01/2032 ............. 6,829,124
-----------
Total FHLMCs
(Cost $82,312,766) .............. 85,759,436
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 8.6%
20,075,805 5.000% due 01/01/2018-10/01/2032 20,549,343
12,405,427 5.500% due 03/01/2033 ............. 12,768,285
8,182,058 6.000% due 04/01/2032 ............. 8,528,843
28,142,173 6.500% due 09/01/2028-05/01/2032 29,415,045
833,333 7.000% due 01/01/2030 ............. 881,433
302,453 7.536% due 06/01/2016 ............. 340,683
8,000,000 7.630% due 02/01/2010 ............. 9,491,412
-----------
Total FNMAs
(Cost $78,750,857) .............. 81,975,044
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 2.2%
16,672,682 6.000% due 05/20/2032** ........... 17,400,726
3,826,932 7.000% due 06/20/2031** ........... 4,042,289
-----------
Total GNMAs
(Cost $20,425,237) .............. 21,443,015
-----------
Total U.S. Government Agency Mortgage-
Backed Securities
(Cost $181,488,860) ............. 189,177,495
-----------
U.S. TREASURY OBLIGATIONS - 6.1%
U.S. TREASURY BONDS - 4.0%
15,000,000 5.250% due 02/15/2029** ........... 15,792,780
19,000,000 5.500% due 08/15/2028** ........... 20,661,018
1,000,000 6.250% due 08/15/2023** ........... 1,184,688
-----------
Total U.S. Treasury Bonds ......... 37,638,486
-----------
PRINCIPAL
AMOUNT VALUE
--------- -----
U.S. TREASURY NOTE - 2.1%
$20,000,000 4.000% due 11/15/2012** ........... $20,261,720
-----------
Total U.S. Treasury Obligations
(Cost $55,358,575) .............. 57,900,206
-----------
COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) - 0.2%
(Cost $1,552,881)
1,550,217 Reilly Mortgage FHA, Series 1982,
7.430% due 08/01/2022 ........... 1,662,104
-----------
COLLATERALIZED MORTGAGE OBLIGATION (CMO) - 0.1%
(Cost $1,177,770)
1,259,647 Donaldson, Lufkin & Jenrette Mortgage
Acceptance Corporation, Series 1995-Q10,
Class B1,
5.880% due 01/25/2026++ ......... 1,297,179
-----------
SHARES
------
CONVERTIBLE PREFERRED STOCK - 0.5%
(Cost $5,100,000)
100,000 Ford Motor Company Capital Trust II,
Conv. Pfd., 6.500% due 01/15/2032 4,387,000
-----------
PRINCIPAL
AMOUNT
---------
REPURCHASE AGREEMENT - 7.1%
(Cost $67,224,000)
$67,224,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003, to be
repurchased at $67,226,017 on
05/01/2003, collateralized by $63,710,571
U.S. Treasury Notes, having various
interest rates and maturities
(Market Value $68,596,957) ...... 67,224,000
-----------
TOTAL INVESTMENTS (Cost $899,840,052*) .... 98.7% 940,851,274
OTHER ASSETS AND LIABILITIES (NET) ........ 1.3 12,500,471
----- -----------
NET ASSETS ............................... 100.0% $953,351,745
----- ============
- -------------------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $150,631,725, representing 15.8% of the total
net assets of the Fund (Collateral Value $156,419,236).
+ Security acquired in a transaction exempt from registration under Rule
144A of the Securities Act of 1933.
++ Floating rate security whose rate is reset periodically based on an index.
- --------------------------------------------------------------------------------
GLOSSARY OF TERMS
FHA -- Federal Housing Authority
MTN -- Medium Term Note
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
61
PORTFOLIO of INVESTMENTS
HIGH YIELD FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
CORPORATE BONDS AND NOTES - 89.4%
HEALTH CARE - 13.6%
$12,250,000 Athena Neurosciences Finance LLC,
Company Guarantee,
7.250% due 02/21/2008 ........... $ 8,636,250
3,500,000 CuraGen Corporation, Conv. Sub. Deb.,
6.000% due 02/02/2007 ........... 2,568,125
DVI, Inc., Sr. Note:
7,650,000 9.875% due 02/01/2004 ........... 7,114,500
3,675,000 9.875% due 02/01/2004 ........... 3,417,750
HIH Capital Ltd., Conv. Note:
3,500,000 7.500% due 09/25/2006 ........... 2,380,000
9,050,000 7.500% due 09/25/2006++ ......... 6,154,000
3,000,000 Human Genome Sciences Inc., Conv.
Sub. Note,
3.750% due 03/15/2007** ......... 2,328,750
2,900,000 Incyte Genomics Inc., Conv. Sub. Note,
5.500% due 02/01/2007 ........... 2,011,875
13,350,000 IVAX Corporation, Conv. Sr. Sub. Note,
4.500% due 05/15/2008 ........... 12,432,187
8,745,000 Omnicare, Inc., Conv. Sub. Deb.,
5.000% due 12/01/2007 ........... 8,865,244
3,000,000 Vertex Pharmaceuticals Inc., Conv. Sub. Note,
5.000% due 09/19/2007 ........... 2,456,250
-----------
58,364,931
-----------
OIL/ENERGY - 12.1%
8,000,000 El Paso Natural Gas Company, Bond,
8.375% due 06/15/2032++ ......... 8,120,000
14,000,000 Hanover Compressor Company, Conv. Sr. Note,
4.750% due 03/15/2008** ......... 11,585,000
14,000,000 PDVSA Finance Ltd., Note,
8.500% due 11/16/2012 ........... 11,515,000
10,000,000 Petrobras International Finance Company,
Sr. Note,
9.750% due 07/06/2011 ........... 10,375,000
7,500,000 Southern Natural Gas Company, Sr. Note,
8.000% due 03/01/2032** ......... 7,706,250
Tri-Union Development Corporation,
Company Guarantee:
2,962,000 12.500% due 06/01/2006 .......... 2,310,360
218,750 Series AI, (Payment-In-Kind),
12.500% due 06/01/2006++ ........ 170,625
-----------
51,782,235
-----------
WIRELESS/COMMUNICATIONS/BROADBAND - 10.5%
12,750,000 Extreme Networks, Inc., Conv.
Sub. Note,
3.500% due 12/01/2006** ......... 10,885,312
11,950,000 RadiSys Corporation, Conv.
Sub. Note,
5.500% due 08/15/2007 ........... 10,530,938
15,710,000 TriQuint Semiconductor, Inc.,
Conv. Sub. Note,
4.000% due 03/01/2007 ........... 13,157,125
11,750,000 Vitesse Semiconductor Corporation,
Conv. Sub. Deb.,
4.000% due 03/15/2005** ......... 10,501,563
-----------
45,074,938
-----------
PRINCIPAL
AMOUNT VALUE
--------- -----
INDEX PRODUCT - 10.5%
$22,050,000 J.P. Morgan HYDIsm November 15, 2007,
Credit-Linked Trust Certificates,
8.750% due 11/15/2007++** ....... $23,786,437
19,980,000 Trains HY-1-2002, Note,
8.654% due 02/01/2012++ ......... 20,917,522
-----------
44,703,959
-----------
GAMING - 6.0%
7,500,000 Mikohn Gaming Corporation,
Company Guarantee, Series B,
11.875% due 08/15/2008 .......... 6,862,500
6,000,000 Old Evangeline Downs, LLC,
Company Guarantee,
13.000% due 03/01/2010++ ........ 6,090,000
13,500,000 Riviera Holdings Corporation,
Company Guarantee,
11.000% due 06/15/2010 .......... 12,757,500
-----------
25,710,000
-----------
TELECOMMUNICATIONS - 6.0%
13,500,000 Qwest Corporation, Note,
8.875% due 03/15/2012++ ......... 14,850,000
9,500,000 TELUS Corporation, Note,
8.000% due 06/01/2011 ........... 10,782,500
-----------
25,632,500
-----------
SOFTWARE/OTHER - 5.8%
14,000,000 BEA Systems Inc., Conv. Sub. Note,
4.000% due 12/15/2006** ......... 13,335,000
11,500,000 Siebel Systems Inc., Conv. Sub. Note,
5.500% due 09/15/2006** ......... 11,600,625
-----------
24,935,625
-----------
BROAD SEMICONDUCTOR - 5.4%
16,000,000 Conexant Systems Inc., Conv. Sub. Note,
4.000% due 02/01/2007** ......... 9,840,000
14,370,000 LSI Logic Corporation, Conv. Sub. Note,
4.000% due 02/15/2005** ......... 13,453,913
-----------
23,293,913
-----------
FOREIGN GOVERNMENT (U.S. DOLLAR DENOMINATED) - 4.8%
11,390,543 Federative Republic of Brazil, C-Bond,
8.000% due 04/15/2014** ......... 10,035,694
10,000,000 United Mexican States, Note,
6.625% due 03/03/2015 ........... 10,475,000
-----------
20,510,694
-----------
UTILITIES - 3.1%
Illinois Power Company, First Mortgage:
8,750,000 7.500% due 06/15/2009** ......... 8,706,250
4,000,000 11.500% due 12/15/2010++ ........ 4,500,000
-----------
13,206,250
-----------
See Notes to Financial Statements.
62
PORTFOLIO of INVESTMENTS (continued)
HIGH YIELD FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
CORPORATE BONDS AND NOTES (CONTINUED)
SERVICES - 3.0%
$12,000,000 Allied Waste North America Inc.,
Company Guarantee, Series B,
10.000% due 08/01/2009** ........ $12,885,000
-----------
AEROSPACE/DEFENSE - 2.7%
11,150,000 Orbital Sciences Corporation,
Company Guarantee, Series B,
12.000% due 08/15/2006 .......... 11,623,875
-----------
CONSUMER PRODUCTS/LEISURE - 2.6%
Royal Caribbean Cruises Ltd.:
3,000,000 Deb.,
7.250% due 03/15/2018 ........... 2,610,000
8,000,000 Sr. Note,
8.750% due 02/02/2011** ......... 8,160,000
10,000,000 S3 Inc., Conv. Sub. Note, (in default),
5.750% due 10/01/2003 ........... 150,000
-----------
10,920,000
-----------
CABLE TV - 1.7%
5,500,000 Century Communications Corporation,
Sr. Note, (in default),
8.750% due 10/01/2007 ........... 2,585,000
5,000,000 Olympus Communications LP, Sr. Note,
Series B, (in default),
10.625% due 11/15/2006 .......... 4,600,000
-----------
7,185,000
-----------
DIVERSIFIED MEDIA - 0.9%
4,000,000 Getty Images, Inc., Conv. Sub. Note,
5.000% due 03/15/2007 ........... 3,910,000
-----------
MANUFACTURING - 0.7%
5,000,000 Ogden Corporation, Deb., (in default),
9.250% due 03/01/2022 ........... 2,775,000
-----------
Total Corporate Bonds and Notes
(Cost $371,709,123) ............. 382,513,920
-----------
COLLATERALIZED MORTGAGE OBLIGATION (CMO) - 0.1%
(Cost $365,567)
387,898 Donaldson, Lufkin & Jenrette Mortgage
Acceptance Corporation,
Series 1995-Q10,
Class B1,
5.880% due 01/25/2026+++ ........ 399,455
-----------
SHARES
------
COMMON STOCKS - 5.5%
57,845 Credence Systems Corporation+ ..... 410,699
219,400 Health Care Property Investors, Inc. 8,166,068
100,000 Health Care REIT, Inc. ............ 2,847,000
180,460 ICO Global Communications Holdings
Ltd.+** ......................... 176,851
206,173 Komag Inc.+ ....................... 1,647,322
123,430 Life Sciences Research, Inc.+ ..... 320,918
SHARES VALUE
------ -----
708,800 Nationwide Health Properties Inc. $ 9,923,200
2,064 Tri-Union Development Corporation,
Class A+ ....................... 21
3,500 Tribo Petroleum Corporation, Class A+ 35
-----------
Total Common Stocks
(Cost $25,429,561) .............. 23,492,114
-----------
CONVERTIBLE PREFERRED STOCK - 1.0%
(Cost $4,597,000)
100,000 Ford Motor Company Capital Trust II, Conv.
Pfd., 6.500% due 01/15/2032 ..... 4,387,000
-----------
WARRANTS - 0.0% ***
45,327 ICO Global Communications Holdings Ltd.,
Expires 05/16/2006+ ............. 453
45,870 Komag Inc., Expires 06/30/2005+ ... 104,354
5,000 Mikohn Gaming Corporation,
Expires 08/15/2008+,++ .......... 50
-----------
Total Warrants
(Cost $11,731) .................. 104,857
-----------
PRINCIPAL
AMOUNT
---------
REPURCHASE AGREEMENT - 2.1%
(Cost $8,960,000)
$ 8,960,000 Agreement with Goldman Sachs Group,
Inc., 1.080% dated 04/30/2003, to be
repurchased at $8,960,269 on
05/01/2003, collateralized by $8,491,710
U.S. Treasury Notes, having various
interest rates and maturities
(Market Value $9,142,996) ....... 8,960,000
------------
TOTAL INVESTMENTS (Cost $411,072,982*) .. 98.1% 419,857,346
OTHER ASSETS AND LIABILITIES (NET) ...... 1.9 8,214,466
----- ------------
NET ASSETS .............................. 100.0% $428,071,812
===== ============
- --------------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2003, and have an
aggregate market value of $94,377,483 representing 22.0% of the total net
assets of the Fund (Collateral Value $100,700,337).
*** Amount represents less than 0.1% of total net assets.
+ Non-income producing security.
++ Security acquired in a transaction exempt from registration under Rule
144A of the Securities Act of 1933.
+++ Floating rate security whose rate is reset periodically based on an index.
See Notes to Financial Statements.
63
PORTFOLIO of INVESTMENTS
TAX-EXEMPT BOND FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES - 99.2%
ALASKA - 3.2%
$ 4,500,000 Alaska State International Airports, Airport
& Marina Revenue, Series B, (AMBAC
Insured),
5.250% due 10/01/2027** ......... $ 4,691,340
1,235,000 Anchorage, Electric Utilities,
Power & Light
Revenue, Sr. Lien, (MBIA Insured),
6.500% due 12/01/2013 ........... 1,536,180
2,000,000 Anchorage, Ice Rink, Recreational
Revenue,
6.375% due 01/01/2020 ........... 2,393,220
-----------
8,620,740
-----------
ARIZONA - 2.9%
1,000,000 Arizona School Facilities Board,
COP, Series A,
(MBIA Insured),
5.250% due 09/01/2017 ........... 1,103,770
2,000,000 Arizona Tourism & Sports Authority,
Recreational Revenue, (Multipurpose
Stadium Facility Project), Series A,
(MBIA Insured),
5.375% due 07/01/2019 ........... 2,211,080
3,000,000 Salt River Project, Agricultural
Improvement & Power District,
Electric Systems Revenue,
Series A,
5.750% due 01/01/2009** ......... 3,465,090
1,000,000 Tucson, Street & Highway User
Revenue, Jr. Lien, (Projects of
1994 & 2000), (AMBAC Insured),
6.000% due 07/01/2013 ........... 1,198,560
-----------
7,978,500
-----------
CALIFORNIA - 8.9%
1,000,000 Alameda County, Fremont Unified School
District, GO, Series A, (FGIC Insured),
5.000% due 08/01/2025 ........... 1,037,720
1,400,000 Anaheim, Unified High School District, GO,
Series A, (FSA Insured),
5.000% due 08/01/2025 ........... 1,448,650
California State Department of Water
Resources, Power Supply Revenue,
Series A:
1,000,000 6.000% due 05/01/2015 ........... 1,154,090
(AMBAC Insured):
2,000,000 5.375% due 05/01/2018 ........... 2,211,400
1,000,000 5.500% due 05/01/2016 ........... 1,129,590
2,000,000 Center Unified School District, Capital
Appreciation, GO, Series C, (MBIA
Insured),
Zero coupon due 09/01/2018 ...... 971,360
2,000,000 Foothill Eastern Transportation Corridor
Agency, Capital Appreciation, Toll Road
Revenue, (MBIA Insured),
Zero coupon due 01/15/2018....... 937,200
2,700,000 Jurupa, Unified School District, GO,
(FGIC Insured),
5.125% due 08/01/2022 ........... 2,860,974
1,140,000 Los Angeles, Unified School District,
GO, Series A, (FSA Insured),
5.250% due 07/01/2019 ........... 1,249,554
2,000,000 Orange County, COP, Series A, (MBIA
Insured),
6.000% due 07/01/2026 ........... 2,270,020
-----------
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 1,180,000 Palmdale, COP, (Park Improvement
& Avenue S Construction Project),
(MBIA Insured),
5.250% due 09/01/2018 ........... $ 1,308,750
2,000,000 Placentia-Yorba Linda, Unified School
District, GO, Series A,
(FGIC Insured),
5.000% due 08/01/2026 ........... 2,063,400
1,300,000 Port of Oakland, Airport & Marina
Revenue, Series L, AMT,
(FGIC Insured),
5.000% due 11/01/2032 ........... 1,308,307
683,000 Sacramento, COP, (Centrex System Lease),
Series A,
5.550% due 09/15/2004 ........... 711,481
2,000,000 San Francisco City and County,
International Airports Commission,
Airport Revenue, Second Series,
Issue 29B, (FGIC Insured),
5.125% due 05/01/2020 ........... 2,145,600
7,000,000 San Joaquin Hills, Transportation Corridor
Agency, Toll Road Revenue, Series A,
(MBIA Insured),
Zero coupon due 01/15/2034 ...... 1,385,160
-----------
24,193,256
-----------
COLORADO - 2.1%
2,735,000 Adams & Arapahoe Counties, Joint School
District No. 28J, GO, Series A, (FSA
Insured),
5.125% due 12/01/2021 ........... 2,914,635
1,000,000 Colorado Health Facility Authority,
Health Care Revenue, (Catholic
Health Initiatives),
5.250% due 09/01/2021 ........... 1,031,590
1,650,000 Lakewood, COP, (AMBAC Insured),
5.350% due 12/01/2017 ........... 1,827,210
-----------
5,773,435
-----------
CONNECTICUT - 1.0%
1,500,000 Connecticut State Special Obligation
Parking, Airport & Marina Revenue,
(Bradley International Airport),
Series A, AMT, (ACA Insured),
6.600% due 07/01/2024 ........... 1,623,825
995,000 Mashantucket Western Pequot Tribe,
Special Revenue, Series A, ETM,
6.500% due 09/01/2005 ........... 1,110,987
-----------
2,734,812
-----------
DISTRICT OF COLUMBIA - 0.2%
500,000 District of Columbia, Water & Sewer
Authority, Public Utilities Revenue,
(FSA Insured),
5.500% due 10/01/2017 ........... 579,470
-----------
FLORIDA - 11.8%
250,000 Bay County, Water Systems Revenue,
(AMBAC Insured),
5.700% due 09/01/2030 ........... 279,050
500,000 Brevard County, School Board Authority,
COP, Series B, (AMBAC Insured),
5.500% due 07/01/2021 ........... 549,455
450,000 Collier County, Industrial Development
Authority, IDR, (Southern States
Utilities Project), AMT,
6.500% due 10/01/2025 ........... 446,611
600,000 Dade County, Aviation Revenue, Series B,
AMT, (MBIA Insured),
6.600% due 10/01/2022** ......... 619,080
See Notes to Financial Statements.
64
PORTFOLIO of INVESTMENTS (continued)
TAX-EXEMPT BOND FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
FLORIDA (CONTINUED)
$ 9,750,000 Dade County, Guaranteed Entitlement Revenue,
Series A, (MBIA Insured),
Zero coupon due 02/01/2018 ...... $ 4,275,472
Escambia County, Health Facilities
Authority, Health Facilities Revenue:
200,000 (Baptist Hospital Inc.), Series B,
6.000% due 10/01/2014 ........... 203,742
1,500,000 (Florida Health Care Facilities Loan-VHA
Program), (AMBAC Insured),
5.950% due 07/01/2020 ........... 1,644,210
650,000 Escambia County, Utilities Authority,
Utility Systems Revenue, (FGIC Insured),
5.250% due 01/01/2029 ........... 684,743
900,000 Florida Housing Finance Agency, Housing
Revenue, (Spinnaker Cove Apartments
Project), Series G, AMT, (AMBAC
Insured),
6.500% due 07/01/2036** ......... 952,794
450,000 Florida Housing Finance Agency, SFMR,
Series A, AMT, (GNMA/FNMA Collateral),
6.650% due 01/01/2024** ......... 469,985
800,000 Florida State Board of Education, Lottery
Revenue, Series A, (FGIC Insured),
5.250% due 07/01/2017 ........... 875,680
675,000 Florida State Municipal Power Agency,
Power & Light Revenue, (Stanton Project),
(FSA Insured),
5.500% due 10/01/2014 ........... 774,630
1,000,000 Florida State Turnpike Authority, Turnpike
Revenue, (Department of Transportation),
Series A, (FGIC Insured),
5.000% due 07/01/2016** ......... 1,016,590
800,000 Gulf Breeze, Revenue Bonds, (Venice Local
Government Loan), Series E,
(FGIC Insured),
4.950% due 12/01/2020 ........... 871,768
800,000 Hillsborough County, Capital Improvement
Program Revenue, (Criminal Justice
Facilities Project), (FGIC Insured),
5.250% due 08/01/2016** ......... 815,280
1,000,000 Hillsborough County, Port District Revenue,
(Tampa Port Authority Project), Series A,
AMT, (MBIA Insured),
5.375% due 06/01/2027 ........... 1,043,690
1,615,000 Jacksonville Electric Authority, Water &
Sewer Revenue, Series A,
5.000% due 10/01/2014 ........... 1,726,467
1,500,000 Jacksonville, Sales Tax Revenue, (Better
Jacksonville Project), (MBIA Insured),
5.250% due 10/01/2020 ........... 1,633,740
600,000 Jacksonville, Water & Sewer Revenue,
(United Waterworks Inc. Project), AMT,
(AMBAC Insured),
6.350% due 08/01/2025** ......... 662,316
480,000 Manatee County, Housing Finance Authority,
SFMR, Series 94-4, AMT, (GNMA/FNMA
Collateral),
6.875% due 11/01/2026 ........... 507,384
1,095,000 Marion County, School Board, COP, (FSA
Insured),
5.250% due 06/01/2018 ........... 1,207,172
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 1,000,000 Miami-Dade County, Aviation Revenue,
Series A, AMT, (FSA Insured),
5.000% due 10/01/2033 ........... $ 1,004,810
500,000 Orange County, Housing Finance Authority,
MFHR, (Hands Inc. Project), Series A,
7.000% due 10/01/2025** ......... 558,330
5,000,000 Orlando, Utilities Commission, Water &
Electric Revenue,
6.000% due 10/01/2010 ........... 5,940,850
600,000 Orlando-Orange County, Expressway
Authority, Expressway Revenue, Jr. Lien,
(FSA Insured),
5.950% due 07/01/2023 ........... 604,926
1,500,000 Osceola County, School Board, COP,
Series A, (AMBAC Insured),
5.125% due 06/01/2022 ........... 1,590,900
900,000 Pasco County, Solid Waste Disposal &
Resource Recovery System, Resource
Recovery Revenue, AMT, (AMBAC
Insured),
6.000% due 04/01/2011 ........... 1,027,350
-----------
31,987,025
-----------
GEORGIA - 5.2%
1,000,000 Georgia Municipal Electric Authority, Power
& Light Revenue, (Combustion Turbine
Project), Series A, (MBIA Insured),
5.250% due 11/01/2016 ........... 1,105,090
5,000,000 Georgia State, GO, Series B,
6.300% due 03/01/2009** ......... 5,945,750
Monroe County, Development Authority,
PCR, (Oglethorpe Power
Corporation Project), Series A,
(MBIA-IBC Insured):
2,500,000 6.700% due 01/01/2009 ........... 2,996,275
3,410,000 6.750% due 01/01/2010** ......... 4,128,248
-----------
14,175,363
-----------
HAWAII - 0.9%
Honolulu City and County, GO, Series A:
1,270,000 (Unrefunded Balance),
6.000% due 01/01/2012 ........... 1,490,536
730,000 ETM,
6.000% due 01/01/2012 ........... 871,138
-----------
2,361,674
-----------
IDAHO - 0.9%
2,000,000 Idaho Health Facilities Authority,
Health Care Revenue, (IHC Hospitals
Inc. Project), (Inverse Floater),
ETM,
6.650% due 02/15/2021+ .......... 2,573,980
-----------
ILLINOIS - 6.2%
915,000 Bolingbrook, Capital Appreciation, GO,
Series C, (MBIA Insured),
Zero coupon due 01/01/2025 ...... 292,736
Chicago, O'Hare International Airport,
Special Facilities Revenue, Series B:
965,000 (Second Lien Passenger Facility),
(AMBAC Insured),
5.500% due 01/01/2017 ........... 1,071,247
1,000,000 (United Airlines Project), AMT,
(in default),
6.100% due 11/01/2035 ........... 117,000
See Notes to Financial Statements.
65
PORTFOLIO of INVESTMENTS (continued)
TAX-EXEMPT BOND FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
ILLINOIS (CONTINUED)
$ 2,570,000 Cook County, Oak Lawn School District
No. 122, Capital Appreciation, GO,
(FGIC Insured),
Zero coupon due 12/01/2016 ...... $ 1,383,611
1,020,000 Cook County, River Trails School
District No. 026, Capital
Appreciation, GO, ETM,
(MBIA Insured),
Zero coupon due 12/01/2004 ...... 997,570
2,000,000 Illinois State, GO, Series 1,
(MBIA Insured),
5.750% due 12/01/2012 ........... 2,355,780
Metropolitan Pier & Exposition Authority,
Capital Appreciation, Dedicated State
Tax Revenue, Series A, (FGIC Insured):
(Unrefunded Balance):
85,000 Zero coupon due 06/15/2008 ...... 73,320
130,000 Zero coupon due 06/15/2009 ...... 106,666
ETM:
620,000 Zero coupon due 06/15/2008 ...... 537,515
3,295,000 Zero coupon due 06/15/2008 ...... 2,856,633
5,055,000 Zero coupon due 06/15/2009 ...... 4,172,802
815,000 Zero coupon due 06/15/2009 ...... 672,766
2,000,000 Metropolitan Pier & Exposition Authority,
Sales Tax Revenue, (McCormick Place
Expansion Project), Series A, (MBIA
Insured),
5.250% due 06/15/2042 ........... 2,091,320
-----------
16,728,966
-----------
INDIANA - 2.6%
6,000,000 Indiana Municipal Power Agency, Power
Supply System Revenue, Series A, ETM,
(MBIA Insured),
6.125% due 01/01/2013** ......... 7,087,680
-----------
KANSAS - 0.5%
1,315,000 Kansas State Development Finance Authority,
Limited Tax Revenue, (Department of
Commerce & Housing IMPACT Program),
(MBIA Insured),
5.000% due 06/01/2010 ........... 1,469,105
-----------
KENTUCKY - 2.0%
2,100,000 Jefferson County, Alliant Health
Systems Inc., Hospital Revenue,
(Inverse Floater), (Unrefunded
Balance), (MBIA Insured),
11.473% due 10/09/2008+ ......... 2,201,976
1,435,000 Kentucky State Property & Buildings
Commission, Lease Revenue, (Project
No. 74), (FSA Insured),
5.375% due 02/01/2016 ........... 1,597,901
1,500,000 Kentucky State Turnpike Authority,
Economic Development Road Revenue,
(Revitalization Project),
(Pre-refunded to 01/01/2011),
(FSA Insured),
5.625% due 07/01/2013 ........... 1,698,150
-----------
5,498,027
-----------
LOUISIANA - 0.9%
1,500,000 Louisiana Public Facilities Authority,
Customer Receipts Revenue, Series B,
ETM,
Zero coupon due 12/01/2019 ...... 690,780
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 1,500,000 Louisiana State, GO, Series A, (FGIC
Insured),
5.500% due 11/15/2008 ........... $ 1,730,670
-----------
2,421,450
-----------
MARYLAND - 0.8%
2,000,000 Baltimore, Port Facilities,
Industrial Revenue,
(Consolidated Coal Sales Project),
Series B,
6.500% due 10/01/2011** ......... 2,048,580
-----------
MASSACHUSETTS - 2.0%
1,500,000 Massachusetts Municipal Wholesale Electric
Company, Power Supply System Revenue,
(Project 6-A), (MBIA Insured),
5.250% due 07/01/2015 ........... 1,653,150
1,000,000 Massachusetts State Development Finance
Agency, Revenue Bonds,
(Hillcrest Educational Centers
Inc. Project),
6.375% due 07/01/2029 ........... 978,110
1,000,000 Massachusetts State Health & Educational
Facilities Authority, Health Care
Revenue, (Health Care System-Covenant
Health),
6.000% due 07/01/2031 ........... 1,046,960
1,500,000 Massachusetts State, Federal Highway
Grant Anticipation Notes Revenue,
Series A,
5.750% due 06/15/2015 ........... 1,721,175
-----------
5,399,395
-----------
MICHIGAN - 1.1%
1,000,000 Manchester, Community Schools, GO,
(Building and Site Project),
5.000% due 05/01/2031 ........... 1,020,820
Michigan State Strategic Fund, Limited
Obligation Revenue, AMT:
1,000,000 (Detroit Edison Company Exempt
Facilities Project), Series C,
(XLCA Insured),
5.450% due 12/15/2032 ........... 1,039,250
1,000,000 (Detroit Edison Company Pollution
Control Project), Series B,
5.650% due 09/01/2029 ........... 1,021,430
-----------
3,081,500
-----------
MISSOURI - 3.3%
2,250,000 Bi-State Development Agency of the
Missouri-Illinois Metropolitan
District, Mass Transit Sales Tax
Revenue, (Metrolink Cross County
Extension Project), Series B,
(FSA Insured),
5.250% due 10/01/2019 ........... 2,458,553
1,000,000 Cape Girardeau County, Industrial
Development Authority, Health Care
Facilities Revenue, (Southeast Hospital
Association Project),
5.625% due 06/01/2027 ........... 1,023,510
600,000 Fenton, Tax Increment Revenue, (Gravois
Bluffs Improvement Project),
7.000% due 10/01/2021 ........... 634,914
1,500,000 Jackson County, Reorganized School District
No. 7, GO, (Lee's Summit School District),
(FSA Insured),
5.250% due 03/01/2015 ........... 1,662,465
1,000,000 Missouri State Health and Education
Facilities Authority, Education
Facilities Revenue, (University of
Missouri- Columbia Arena Project),
5.000% due 11/01/2018 ........... 1,065,910
See Notes to Financial Statements.
66
PORTFOLIO of INVESTMENTS (continued)
TAX-EXEMPT BOND FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
MISSOURI (CONTINUED)
St. Louis County, Pattonville
School District No. R-3, GO,
(Missouri Direct Deposit
Program), (FGIC Insured):
$ 1,000,000 5.750% due 03/01/2017 ........... $ 1,144,500
880,000 5.750% due 03/01/2018 ........... 1,003,358
-----------
8,993,210
-----------
NEBRASKA - 3.1%
7,000,000 Omaha Public Power District, Electric
Revenue, Series B, ETM,
6.150% due 02/01/2012** ......... 8,325,450
-----------
NEVADA - 0.8%
1,000,000 Clark County, GO, (Las Vegas Convention
Center Project), Series A,
5.000% due 07/01/2024 ........... 1,021,990
1,000,000 Reno, Sales & Room Tax Revenue, Sr.
Lien, (ReTrac-Reno Transportation
Rail Access Corridor Project),
(AMBAC Insured),
5.125% due 06/01/2037 ........... 1,024,260
-----------
2,046,250
-----------
NEW JERSEY - 1.3%
1,000,000 New Jersey Economic Development Authority,
Economic Development Revenue,
(Kapkowski Road Landfill Project),
5.750% due 04/01/2031** ......... 973,530
1,340,000 New Jersey Educational Facilities
Authority, Government Fund Grant
Revenue, (Higher Education Capital
Improvement Project),
Series A, (AMBAC Insured),
5.250% due 09/01/2020 ........... 1,451,434
1,000,000 New Jersey Transit Corporation, COP,
(Federal Transit Administration Grants
Projects), Series A, (AMBAC Insured),
5.500% due 09/15/2013 ........... 1,156,490
-----------
3,581,454
-----------
NEW YORK - 5.0%
1,265,000 Metropolitan Transportation Authority,
Service Contract Revenue,
(Transportation Facilities Project),
Series 7,
4.750% due 07/01/2019 ........... 1,373,119
1,500,000 Metropolitan Transportation Authority,
Transportation Revenue, Series A,
(FGIC Insured),
5.250% due 11/15/2031 ........... 1,578,735
2,000,000 Nassau County, Interim Finance Authority,
Sales Tax Revenue, Series A,
5.750% due 11/15/2013 ........... 2,256,140
1,000,000 New York State Dormitory Authority,
College & University Revenue, (State
University Educational Facilities
Project), (MBIA Insured),
6.000% due 05/15/2016 ........... 1,172,630
1,700,000 New York State Environmental Facilities
Corporation, State Clean Water & Drinking
Water Revolving Funds Revenue, (Pooled
Financing Program), Series C,
5.000% due 07/15/2020 ........... 1,800,861
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 580,000 New York State Housing Finance Agency,
MFHR, (Secured Mortgage Program),
Series F, AMT,
6.625% due 08/15/2012 ........... $ 592,505
1,500,000 New York State Mortgage Agency,
Homeowner Mortgage Revenue,
Series 82, AMT,
5.650% due 04/01/2030 ........... 1,569,150
1,000,000 New York State Urban Development
Corporation, Personal Income Tax
Revenue, Series C-1, (FGIC Insured),
5.500% due 03/15/2019 ........... 1,117,440
New York State, GO:
1,000,000 Series B, ETM, (FSA Insured),
7.000% due 06/01/2014** ......... 1,006,470
1,000,000 Series H,
5.750% due 03/15/2013 ........... 1,092,790
-----------
13,559,840
-----------
NORTH CAROLINA - 1.2%
1,000,000 Charlotte, COP, (Convention Facility
Project), Series A,
5.500% due 08/01/2019*** ........ 1,096,720
2,000,000 North Carolina Municipal Power Agency
No. 1, Catawba Electric Revenue,
Series A, (MBIA Insured),
5.250% due 01/01/2018 ........... 2,181,140
-----------
3,277,860
-----------
OHIO - 2.5%
1,000,000 Cuyahoga County, Hospital Facilities
Revenue, (Canton Inc. Project),
7.500% due 01/01/2030 ........... 1,109,430
1,000,000 Franklin County, Convention Facilities
Authority, Tax & Lease Revenue,
(AMBAC Insured),
5.250% due 12/01/2013 ........... 1,127,290
1,000,000 Montgomery County, Hospital Revenue,
(Grandview Hospital & Medical Center
Project), ETM,
5.250% due 12/01/2003 ........... 1,023,840
2,175,000 Ohio State Building Authority, Lease
Revenue, (Administrative Building
Fund Projects), Series A, (FSA Insured),
5.500% due 04/01/2015 ........... 2,460,338
1,000,000 Ohio State University, General Receipts
Revenue, Series A,
5.125% due 12/01/2031 ........... 1,036,130
-----------
6,757,028
-----------
OKLAHOMA - 0.7%
555,000 Oklahoma Housing & Finance Authority,
SFMR, Series B, AMT, (GNMA Collateral),
7.997% due 08/01/2018** 611,893
1,000,000 Tulsa County, Public Facilities Authority,
Capital Improvement Revenue, (AMBAC
Insured),
6.250% due 11/01/2022 ........... 1,190,660
-----------
1,802,553
-----------
See Notes to Financial Statements.
67
PORTFOLIO of INVESTMENTS (continued)
TAX-EXEMPT BOND FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
OREGON - 2.4%
$ 895,000 Clackamas County, Lake Oswego School
District No. 7J, GO,
5.500% due 06/01/2010 ........... $ 1,029,948
1,000,000 Oregon Health Sciences University,
College & University Revenue,
Series A, (MBIA Insured),
5.250% due 07/01/2022 ........... 1,069,140
1,000,000 Oregon State Department of Administrative
Services, COP, Series C,
(MBIA Insured),
5.250% due 11/01/2018 ........... 1,088,600
2,000,000 Portland, Sewer System Revenue,
Second Lien,
Series A, (FSA Insured),
5.250% due 06/01/2020 ........... 2,166,860
1,000,000 Portland, Tax Allocation Revenue,
(Downtown Waterfront Urban Renewal &
Redevelopment Project), Series A,
(AMBAC Insured),
5.750% due 06/15/2016 ........... 1,153,220
-----------
6,507,768
-----------
PENNSYLVANIA - 2.1%
Philadelphia, Gas Works Revenue,
(1998 General Ordinance), (FSA Insured):
1,000,000 Fourth Series,
5.250% due 08/01/2020 ........... 1,082,780
2,500,000 Second Series,
5.250% due 07/01/2029 ........... 2,631,175
820,000 Philadelphia, Parking Authority, Auto Parking
Revenue, Series A, (AMBAC Insured),
5.250% due 02/15/2029 ........... 862,697
1,000,000 Philadelphia, Redevelopment Authority
Revenue, (Neighborhood Transformation
Project), Series A, (FGIC Insured),
5.500% due 04/15/2017 ........... 1,121,180
-----------
5,697,832
-----------
PUERTO RICO - 0.4%
1,000,000 Puerto Rico Municipal Finance Agency,
Revenue Bonds, Series A,
(FSA Insured),
5.250% due 08/01/2021 ........... 1,080,150
-----------
RHODE ISLAND - 0.6%
1,455,000 Providence, GO, Series A, (FGIC Insured),
5.500% due 01/15/2014 ........... 1,645,780
-----------
SOUTH CAROLINA - 2.5%
1,300,000 Chesterfield County, School District, GO,
(FSA Insured),
5.375% due 03/01/2018 ........... 1,436,461
1,955,000 Greenville, Waterworks System Revenue,
5.250% due 02/01/2019 ........... 2,136,580
825,000 Lancaster County, School District, GO,
(FSA Insured),
4.750% due 03/01/2019 ........... 855,269
1,250,000 Myrtle Beach, Jobs Economic Development
Authority, Revenue Bonds, (Myrtle
Beach Convention Center Hotel
Project), Series B,
6.625% due 04/01/2036 ........... 1,254,788
1,000,000 South Carolina, Jobs Economic
Development Authority, IDR,
(Electric & Gas Company
Project), Series A, (AMBAC Insured),
5.200% due 11/01/2027 ........... 1,047,730
-----------
6,730,828
-----------
PRINCIPAL
AMOUNT VALUE
--------- -----
TENNESSEE - 1.2%
$ 1,000,000 Johnson City, Health & Educational Facility
Board, Hospital Revenue, (Mountain
States Health Care Facilities First
Mortgage Project), Series A,
7.500% due 07/01/2033 ........... $ 1,106,160
2,100,000 Tennessee Housing Development Agency,
Housing Revenue, (Homeownership
Program), Series 2A, AMT,
5.700% due 07/01/2031 ........... 2,199,351
-----------
3,305,511
-----------
TEXAS - 6.6%
1,500,000 Austin, Water & Wastewater System
Revenue, (MBIA Insured),
5.250% due 11/15/2019 ........... 1,622,175
1,000,000 Brazos River Authority, PCR, (TXU Energy
Company LLC Project), Series C, AMT,
5.750% due 05/01/2036 ........... 984,450
1,000,000 Corpus Christi, GO, (FSA Insured),
5.750% due 03/01/2018 ........... 1,117,740
1,500,000 Dallas-Fort Worth International
Airport Board, Airport & Marina
Revenue, Series A, AMT,
(FGIC Insured),
5.500% due 12/01/2031 ........... 1,564,620
2,000,000 Houston, Airport System, Airport & Marina
Revenue, Sub. Lien, Series A, AMT,
(FSA Insured),
5.125% due 07/01/2032 ........... 2,018,800
1,000,000 Houston, GO, (Public Improvement
Project), (FSA Insured),
5.750% due 03/01/2015 ........... 1,143,720
1,000,000 Houston, Hotel Occupancy Tax & Special
Revenue, (Convention & Entertainment
Project), Series B, (AMBAC Insured),
5.750% due 09/01/2015 ........... 1,141,600
2,050,000 Houston, Water & Sewer System Revenue, Jr.
Lien, Series C, (FGIC Insured),
5.375% due 12/01/2027 ........... 2,177,777
1,100,000 Metro Health Facilities Development
Corporation, Health Care Revenue,
(Wilson N. Jones Memorial Hospital
Project),
7.200% due 01/01/2021 ........... 1,031,118
North Central, Health Facilities Development
Corporation Revenue:
1,000,000 (Baylor Health Care System Project),
Series A,
5.125% due 05/15/2029 ........... 1,006,520
1,000,000 (Children's Medical Center of Dallas
Project), (AMBAC Insured),
5.250% due 08/15/2032 ........... 1,031,620
1,000,000 Texas Tech University System, Financing
System Revenue, Seventh Series, (MBIA
Insured),
5.000% due 08/15/2025 ........... 1,025,320
2,000,000 University of Texas Financing System,
College & University Revenue, Series A,
5.250% due 08/15/2019 ........... 2,181,760
-----------
18,047,220
-----------
See Notes to Financial Statements.
68
PORTFOLIO of INVESTMENTS (continued)
TAX-EXEMPT BOND FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
VIRGINIA - 1.1%
Richmond, GO, (FSA Insured):
$ 600,000 5.125% due 01/15/2008 ........... $ 672,360
1,000,000 5.250% due 01/15/2009 ........... 1,131,930
1,000,000 5.500% due 01/15/2010 ........... 1,146,460
-----------
2,950,750
-----------
WASHINGTON - 9.2%
2,500,000 Energy Northwest, Electric Revenue,
(Nuclear Project 3), Series A , (FSA
Insured),
5.500% due 07/01/2017 ........... 2,770,625
5,000,000 Franklin County, Pasco School District No.1,
GO, (FSA Insured),
5.250% due 12/01/2019*** ........ 5,417,150
4,500,000 King County, Kent School District No. 415,
GO, Series C,
6.300% due 12/01/2008** ......... 5,297,400
Washington State, GO:
3,000,000 Series B & AT-7,
6.400% due 06/01/2017** ......... 3,729,000
130,000 Series B, (Pre-refunded to 05/01/2004),
5.000% due 05/01/2017** ......... 135,058
7,440,000 Series B, (Unrefunded Balance),
5.000% due 05/01/2017 ........... 7,729,490
-----------
25,078,723
-----------
WEST VIRGINIA - 0.9%
2,500,000 Harrison County, County Community Solid
Waste Disposal Authority, IDR,
(Monongahela Power Company Project),
Series A, AMT, (MBIA-IBC Insured),
6.875% due 04/15/2022 ........... 2,534,750
-----------
WISCONSIN - 1.1%
1,000,000 De Pere, Unified School District, GO,
(FGIC Insured),
5.000% due 10/01/2012 ........... 1,101,640
875,000 Wisconsin Housing & Economic
Development Authority, Home Ownership
Revenue, Series F, AMT,
5.250% due 07/01/2029 ........... 892,185
860,000 Wisconsin State Health & Educational
Facilities Authority, Health Care Revenue,
(Waukesha Memorial Hospital Project),
Series A, (AMBAC Insured),
7.125% due 08/15/2007 ........... 864,240
-----------
2,858,065
-----------
Total Municipal Bonds and Notes
(Cost $245,323,179) ............ 269,493,980
-----------
SHORT-TERM MUNICIPAL BONDS - 1.9%
900,000 Idaho Health Facilities Authority, Health
Care Revenue, (Saint Luke's Regional
Medical Center Project), (FSA Insured),
1.280% due 07/01/2030++ ......... 900,000
4,150,000 New York State, GO, Subseries A-10,
1.260% due 08/01/2016++ ........ 4,150,000
-----------
Total Short-Term Municipal Bonds
(Cost $5,050,000) .............. 5,050,000
-----------
VALUE
-----
TOTAL INVESTMENTS (Cost $250,373,179*) ... 101.1% $274,543,980
OTHER ASSETS AND LIABILITIES (NET) ....... (1.1) (2,941,694)
----- ------------
NET ASSETS ............................... 100.0% $271,602,286
===== ============
- --------------------
* Aggregate cost for federal tax purposes.
** Security segregated as collateral for when-issued securities or futures
contracts.
*** Security purchased on a when-issued basis.
+ Floating rate note. The interest rate shown reflects the rate in effect at
April 30, 2003.
++ Variable rate securities payable upon demand with not more that five
business days' notice, and secured by bank letters of credit or
guarantees by certain corporations. The interest rate shown reflects the
rate in effect at April 30, 2003.
Tax-Exempt Bond Fund had the following industry concentrations greater than 10%
at April 30, 2003 (as a percentage of net assets) (unaudited):
General Obligation 22.1%
General Purpose 14.4%
Power 12.6%
Transportation 11.0%
Tax-Exempt Bond Fund had the following insurance concentrations greater than
10% at April 30, 2003 (as a percentage of net assets) (unaudited):
MBIA 20.8%
FSA 17.0%
FGIC 13.9%
AMBAC 11.4%
NUMBER OF UNREALIZED
CONTRACTS VALUE DEPRECIATION
- --------------------------------------------------------------
FUTURES CONTRACTS-SHORT POSITION
119 U.S. 5 Year Treasury Note,
June 2003 ........... $ 13,536,250 $ (52,239)
28 U.S. 10 Year Treasury Note,
June 2003 .............. 3,223,500 (8,212)
-------------
Net Unrealized Depreciation of
Future Contracts .................. $ (60,451)
=============
- --------------------------------------------------------------------------------
GLOSSARY OF TERMS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Federal Guaranty Insurance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GO -- General Obligation Bond
IBC -- Insured Bond Certificate
IDR -- Industrial Development Revenue
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
PCR -- Pollution Control Revenue
SFMR -- Single Family Mortgage Revenue
VHA -- Veterans Housing Authority
XLCA -- XL Capital Assurance
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
69
PORTFOLIO of INVESTMENTS
CALIFORNIA MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES - 98.7%
CALIFORNIA - 98.4%
$ ABAG Financing Authority for Nonprofit
Corporations, COP:
340,000 (Episcopal Homes Foundation),
5.000% due 07/01/2007 ............ $ 366,795
(O'Connor Woods Obligation Group),
(ACA Insured):
1,000,000 5.400% due 11/01/2009 ............ 1,121,630
2,530,000 5.700% due 11/01/2013 ............ 2,779,660
1,000,000 ABAG Financing Authority for Nonprofit
Corporations, MFHR, (Archstone
Redwood), Series A,
5.300% due 10/01/2008 ............ 1,075,850
1,240,000 ABAG Financing Authority for Nonprofit
Corporations, Revenue Bonds, (California
School of Mechanical Arts),
5.250% due 10/01/2026 ............ 1,294,027
1,345,000 ABC Unified School District, GO, Series A,
(MBIA Insured),
4.800% due 02/01/2018*** ......... 1,456,917
5,360,000 Alhambra, Improvement Board Act of 1915,
Special Tax Revenue, (Public Works
Assessment District No. 1), (MBIA
Insured),
6.125% due 09/02/2018** .......... 5,497,752
1,050,000 Alta Loma, School District, Capital
Appreciation, GO, Series A, (FGIC
Insured),
Zero coupon due 08/01/2022 ....... 400,081
2,000,000 Anaheim, Public Financing Authority, Tax
Allocation Revenue, (Inverse Floater),
(MBIA Insured),
11.620% due 12/28/2018+ .......... 2,761,500
2,210,000 Azusa, Community Facilities District No. 1,
Special Tax Revenue, (Mountain Cove),
Series A,
6.000% due 09/01/2026 ............ 2,232,586
Baldwin Park, Unified School District, GO,
(Election of 2002), (FSA Insured):
2,065,000 5.000% due 08/01/2022 ............ 2,174,073
2,120,000 5.000% due 08/01/2027 ............ 2,189,769
2,000,000 Barstow, Redevelopment Agency, Tax
Allocation Revenue, (Central
Redevelopment Project), Series A,
(MBIA Insured),
7.000% due 09/01/2014 ............ 2,592,400
1,555,000 Beverly Hills, Unified School
District, GO, Series A,
5.000% due 08/01/2022 ............ 1,630,604
3,155,000 Burbank, Waste Disposal Revenue, Series B,
(FSA Insured),
5.250% due 05/01/2024 ............ 3,346,572
2,895,000 Butte-Glenn Community College District,
Capital Appreciation, GO, Series A,
Zero coupon due 02/01/2027 ....... 840,129
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 2,725,000 California Community College Financing
Authority, Lease Revenue, (San Diego
Community College), Series B, (MBIA
Insured),
5.000% due 12/01/2020 ............ $ 2,875,665
2,000,000 California Department of Veteran Affairs,
Home Purchase Revenue, Series A,
(AMBAC Insured),
5.400% due 12/01/2018 ............ 2,209,240
California Educational Facilities Authority,
College & University Revenue:
2,485,000 (Heald College),
5.450% due 02/15/2022 ............ 2,504,656
1,000,000 (Pooled College & University), Series B,
6.625% due 06/01/2020 ............ 1,095,560
1,000,000 (University of San Diego), Series A,
5.250% due 10/01/2030 ............ 1,042,590
1,000,000 California Educational Facilities
Authority, Student Loan Revenue,
(California Loan Program), Series A,
AMT, (MBIA Insured),
5.100% due 03/01/2014 ............ 1,065,030
2,250,000 California Financing Authority for
Resource Efficiency, Lease Revenue,
(First Resource Efficiency Program),
(AMBAC Insured),
6.000% due 07/01/2017 ............ 2,402,595
1,000,000 California Housing Finance Agency, Home
Mortgage Revenue, Series B, AMT,
(MBIA Insured),
6.000% due 08/01/2016 ............ 1,056,710
California Housing Finance Agency, Home
Ownership & Improvement Revenue, AMT,
(MBIA Insured):
80,000 Series B,
5.200% due 08/01/2026 ............ 80,698
665,000 Series D,
6.300% due 08/01/2014 ............ 689,545
2,630,000 Series F,
6.800% due 08/01/2014 ............ 2,761,474
1,000,000 California Infrastructure & Economic
Development Bank, Health Care Revenue,
(The J. David Gladstone Institute
Project),
5.500% due 10/01/2015 ............ 1,104,770
3,855,000 California Infrastructure & Economic
Development Bank, Lease Revenue,
(Asian Art Museum of San Francisco
Project), (MBIA Insured),
5.500% due 06/01/2017 ............ 4,318,795
2,500,000 California Pollution Control Financing
Authority, PCR,
(San Diego Gas and Electric), Series A,
AMT, (AMBAC Insured),
5.850% due 06/01/2021 ............ 2,557,375
445,000 California Rural Home Mortgage
Finance Authority, SFMR,
(Mortgage-Backed Securities Program),
Issue A, Series 2, AMT,
(GNMA/FHLMC Collateral),
7.950% due 12/01/20 ............. 24 481,397
6,320,000 California State Department of
Transportation, COP, Series A,
(MBIA Insured),
5.250% due 03/01/2016** .......... 6,925,014
See Notes to Financial Statements.
70
PORTFOLIO of INVESTMENTS (continued)
CALIFORNIA MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
California State Department of Water
Resources, Power Supply Revenue, Series A:
$ 2,000,000 5.125% due 05/01/2018 ............ $ 2,112,160
3,000,000 5.125% due 05/01/2019 ............ 3,143,520
5,000,000 5.750% due 05/01/2017 ............ 5,568,600
5,000,000 5.875% due 05/01/2016 ............ 5,662,900
(AMBAC Insured):
2,000,000 5.500% due 05/01/2015 ............ 2,265,700
2,000,000 5.500% due 05/01/2016 ............ 2,259,180
3,000,000 (XLCA Insured),
5.375% due 05/01/2017 ............ 3,319,500
California State Department of Water
Resources, Water Revenue:
5,000,000 (Center Valley Project), Series Y, (FGIC
Insured),
5.250% due 12/01/2013 ............ 5,703,800
Series W, (FSA Insured):
2,000,000 5.000% due 12/01/2018 ............ 2,137,320
1,000,000 5.500% due 12/01/2013 ............ 1,159,780
California State Public Works Board, Lease
Revenue:
1,500,000 (California Community Colleges), Series A,
5.250% due 12/01/2014 ............ 1,595,310
3,000,000 (California State University), Series C,
5.400% due 10/01/2022 ............ 3,113,250
(Department of Corrections Program):
2,000,000 Series A, (MBIA-IBC Insured),
5.000% due 09/01/2018 ............ 2,102,660
Series B:
2,000,000 5.250% due 01/01/2012 ............ 2,194,580
4,000,000 5.250% due 01/01/2013 ............ 4,389,040
(Department of Corrections-Ten
Administrative Segregation Housing Units),
Series A, (AMBAC Insured):
2,500,000 5.250% due 03/01/2018 ............ 2,717,925
4,330,000 5.250% due 03/01/2019 ............ 4,677,396
4,200,000 (UC M.I.N.D. Institute), Series A,
5.000% due 04/01/2023 ............ 4,320,624
California State University, Fresno
Association Inc. Revenue, (Auxiliary
Organization Event Center):
1,500,000 6.000% due 07/01/2022 ............ 1,563,750
1,500,000 6.000% due 07/01/2031 ............ 1,538,415
California State, GO:
1,000,000 5.750% due 10/01/2010 ............ 1,139,570
(CIFG-TCRS Insured):
2,000,000 5.000% due 10/01/2022 ............ 2,087,720
1,265,000 5.000% due 02/01/2032 ............ 1,288,706
(FGIC-TCRS Insured):
10,000,000 5.500% due 03/01/2011** .......... 11,429,800
4,430,000 5.500% due 06/01/2025 ............ 4,705,723
1,450,000 7.000% due 10/01/2010 ............ 1,809,121
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 2,000,000 (FSA Insured),
5.250% due 02/01/2010 ............ $ 2,251,380
(MBIA-IBC Insured):
11,000,000 5.000% due 02/01/2032 ............ 11,171,090
10,000,000 5.250% due 02/01/2011** .......... 11,247,400
1,125,000 5.250% due 10/01/2013 ............ 1,269,922
5,000,000 5.750% due 10/01/2010 ............ 5,843,200
1,430,000 (Veterans), Series BJ, AMT,
5.700% due 12/01/2032 ............ 1,472,814
(Veterans), Series BT, AMT:
2,000,000 4.900% due 12/01/2011 ............ 2,056,020
2,510,000 5.000% due 12/01/2012 ............ 2,578,372
1,800,000 5.450% due 12/01/2017 ............ 1,852,182
(XLCA Insured):
5,000,000 5.000% due 10/01/2028 ............ 5,126,300
7,000,000 5.750% due 05/01/2010** .......... 8,077,720
7,050,000 6.750% due 08/01/2012** .......... 8,774,500
3,000,000 California Statewide Communities
Development Authority, COP, (Cedars-
Sinai Medical Center), (MBIA-IBC Insured),
6.500% due 08/01/2012 ............ 3,550,050
California Statewide Communities
Development Authority, MFHR,
(Equity Residential Housing):
1,000,000 Series B,
5.200% due 12/01/2029 ............ 1,074,860
3,300,000 Series C,
5.200% due 06/15/2009 ............ 3,547,038
1,000,000 Calleguas-Las Virgines, Public Financing
Authority, Water Revenue, (Calleguas
Municipal Water District Project), Series B,
(MBIA Insured),
5.250% due 07/01/2021 ............ 1,084,830
1,120,000 Carson, Improvement Board Act of 1915, GO,
7.375% due 09/02/2022** .......... 1,149,725
1,000,000 Carson, Redevelopment Agency, Tax
Allocation Revenue, (Area No. 1 Project),
(MBIA Insured),
5.500% due 10/01/2016 ............ 1,169,910
5,030,000 Cerritos, Public Financing Authority, Tax
Allocation Revenue, Series A, (AMBAC
Insured),
5.000% due 11/01/2019 ............ 5,527,668
1,000,000 Chino Valley, Unified School District, COP,
Series A, (FSA Insured),
5.250% due 09/01/2014 ............ 1,111,290
3,000,000 Chula Vista, COP, (MBIA Insured),
5.000% due 08/01/2027 ............ 3,100,830
4,675,000 Chula Vista, IDR, (San Diego Gas and
Electric), Series A, AMT, (AMBAC
Insured),
6.400% due 12/01/2027** .......... 4,785,049
1,825,000 Chula Vista, Public Financing Authority,
Special Tax Revenue, (Assessment
Districts Refinancing), Sr. Lien,
Series A, (FSA Insured),
4.700% due 09/02/2014 ............ 1,973,190
See Notes to Financial Statements.
71
PORTFOLIO of INVESTMENTS (continued)
CALIFORNIA MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
$ 2,760,000 Chula Vista, Redevelopment Agency, Tax
Allocation Revenue,
8.625% due 09/01/2024 ............ $ 3,327,677
2,000,000 Coachella, Redevelopment Agency, Tax
Allocation Revenue, (Area No. 3 Project),
5.875% due 12/01/2028 ............ 2,036,600
2,160,000 Contra Costa County, Public Financing
Authority, Lease Revenue, (Capital
Projects), Series B, (MBIA Insured),
5.250% due 06/01/2027 ............ 2,273,875
Contra Costa, Water District Revenue,
Series K, (FSA Insured):
1,445,000 5.000% due 10/01/2017 ............ 1,553,274
1,520,000 5.000% due 10/01/2018 ............ 1,622,661
1,500,000 Culver City, Redevelopment Finance
Authority, Tax Allocation Revenue,
Series B,
6.250% due 11/01/2025 ............ 1,534,680
1,000,000 Cupertino, Unified School District, GO,
(FSA Insured),
5.000% due 08/01/2020 ............ 1,053,460
1,670,000 Davis, Public Facilities Finance Authority
Local Agency, Special Tax Revenue,
(Mace Ranch Area), Series A,
6.600% due 09/01/2025 ............ 1,764,455
1,200,000 Duarte, Unified School District, Capital
Appreciation, GO, Series B, (FSA Insured),
Zero coupon due 11/01/2024 ....... 398,328
1,985,000 El Cajon, COP, (Helix View Nursing Home
Project), AMT, (FHA Insured),
7.750% due 02/01/2029 ............ 1,987,958
2,215,000 Fairfield, Housing Authority, Mortgage
Revenue, (Creekside Estates
Mobile Homes),
5.625% due 09/01/2023** .......... 2,126,001
1,000,000 Fontana, Redevelopment Agency, Tax
Allocation Revenue, (Southwest Industrial
Park Project), (MBIA Insured),
5.200% due 09/01/2030 ............ 1,034,090
Foothill Eastern Transportation Corridor
Agency, Toll Road Revenue:
9,000,000 Zero coupon due 01/15/2026** ..... 6,437,880
20,000,000 Zero coupon due 01/15/2030 ....... 4,173,600
10,000,000 Zero coupon due 01/15/2032 ....... 1,845,100
10,000,000 Zero coupon due 01/15/2033 ....... 1,736,500
10,000,000 Zero coupon due 01/15/2034 ....... 1,632,100
10,000,000 Zero coupon due 01/15/2036 ....... 1,441,500
10,000,000 Zero coupon due 01/15/2037 ....... 1,356,100
9,000,000 Zero coupon due 01/15/2038 ....... 1,148,310
3,500,000 (MBIA Insured),
5.000% due 01/15/2016 ............ 3,763,935
2,000,000 Fresno, Joint Powers Financing Authority,
Lease Revenue, Series A, (FSA Insured),
5.750% due 06/01/2026 ............ 2,182,660
PRINCIPAL
AMOUNT VALUE
--------- -----
Golden West Schools Financing Authority,
Capital Appreciation, Revenue Bonds,
(School District Refinancing Program),
Series A, (MBIA Insured):
$ 1,215,000 Zero coupon due 08/01/2016 ....... $ 635,639
1,580,000 Zero coupon due 02/01/2017 ....... 789,321
1,220,000 Hartnell, Community College District, GO,
(Election of 2002), Series A, (MBIA
Insured),
5.000% due 08/01/2017 ............ 1,327,604
Hi Desert, Members Health Care District,
Health Care Revenue:
2,250,000 5.500% due 10/01/2015 ............ 2,106,157
1,175,000 5.500% due 10/01/2019 ............ 1,066,207
2,000,000 Huntington Park, Public Financing Authority,
Lease Revenue, (Wastewater System
Project),
6.200% due 10/01/2025 ............ 2,083,640
5,000,000 Imperial Irrigation District, COP, (Water
System Projects) , (AMBAC Insured),
5.500% due 07/01/2029** .......... 5,381,950
1,250,000 Imperial, Water Facilities Revenue, COP,
(FGIC Insured),
5.000% due 10/15/2020 ............ 1,329,012
1,000,000 Irvine, Meadows Mobile Home Park,
Mortgage Revenue, Series A,
5.700% due 03/01/2018 ............ 987,120
Irvine, Public Facilities & Infrastructure
Authority, Assessment Revenue,
(AMBAC Insured):
Series B:
1,455,000 5.000% due 09/02/2020 ............ 1,501,633
3,630,000 5.000% due 09/02/2021 ............ 3,745,325
2,000,000 Series C,
5.000% due 09/02/2023 ............ 2,059,300
1,175,000 Kings County, Waste Management
Authority, Solid Waste Revenue, AMT,
7.200% due 10/01/2014 ............ 1,241,035
4,950,000 La Quinta, Redevelopment Agency, Tax
Allocation Revenue, (Area No. 1 Project),
(AMBAC Insured),
5.000% due 09/01/2021** .......... 5,242,792
1,500,000 La Verne, Public Financing Authority,
Revenue Bonds, (Capital Improvement
Projects),
7.250% due 09/01/2026 ............ 1,599,165
1,000,000 Laguna Hills, COP, (Community Center
Project), (MBIA Insured),
5.000% due 12/01/2017 ............ 1,074,660
1,975,000 Lake Elsinore, Public Financing Authority,
Local Agency Revenue, Series G,
5.800% due 09/02/2015 ............ 2,076,238
1,070,000 Larkspur, School District, Capital
Appreciation, GO, Series A, (FGIC
Insured),
Zero coupon due 08/01/2019 ....... 489,889
2,000,000 Long Beach, Community Facilities District
No. 5, Special Tax Revenue, (Towne
Center),
6.875% due 10/01/2025 ............ 2,109,300
See Notes to Financial Statements.
72
PORTFOLIO of INVESTMENTS (continued)
CALIFORNIA MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- ------
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
$ 1,315,000 Long Beach, Redevelopment Agency, Tax
Allocation Revenue, (North Long Beach
Redevelopment Projects), Series A,
(AMBAC Insured),
5.000% due 08/01/2022 ............ $ 1,378,935
1,425,000 Los Angeles, Community Redevelopment
Agency, Financing Authority Revenue,
(Grand Central Square Multi-family
Housing Project), Series A, AMT,
5.850% due 12/01/2026 ............ 1,364,366
1,490,000 Los Angeles, Community Redevelopment
Agency, Housing Revenue, Series C,
(AMBAC Insured),
6.750% due 07/01/2014 ............ 1,543,446
1,000,000 Los Angeles, Community Redevelopment
Agency, Parking Systems Revenue,
(Cinerama Dome Public Parking Project),
(ACA Insured),
5.500% due 07/01/2016 ............ 1,047,120
2,500,000 Los Angeles, Community Redevelopment
Agency, Tax Allocation Revenue, (North
Hollywood Project), Series E, (MBIA
Insured),
5.400% due 07/01/2024 ............ 2,687,200
Los Angeles, Department of Airports, Airport
Revenue, (Ontario International Airport),
Series A, AMT, (FGIC Insured):
2,205,000 5.600% due 05/15/2007 ............ 2,427,507
2,575,000 5.700% due 05/15/2008 ............ 2,811,746
2,500,000 Los Angeles, Harbor Department Revenue,
Series B, AMT,
5.500% due 08/01/2008 ............ 2,725,300
95,000 Los Angeles, Home Mortgage Revenue,
(Mortgage-Backed Securities Project),
(GNMA Collateral),
8.100% due 05/01/2017 ............ 100,329
Los Angeles, MFHR, AMT, (GNMA Collateral):
3,000,000 (Park Parthenia Project),
7.400% due 01/20/2022 ............ 3,005,100
1,000,000 (Ridgecroft Apartments Project), Series E,
6.250% due 09/20/2039 ............ 1,055,500
1,445,000 Los Angeles, Special Assessment Revenue,
(Landscaping & Lighting District No. 96-1
Project), (AMBAC Insured),
5.000% due 03/01/2022 ............ 1,512,669
Los Angeles, Unified School District, GO,
(MBIA Insured):
6,660,000 (Election of 1997), Series E,
5.500% due 07/01/2018** .......... 7,460,865
2,000,000 (Election of 2002), Series A,
5.375% due 07/01/2018 ............ 2,235,780
Los Angeles, Water & Power Revenue,
(Power Systems), Series A-A-3:
1,705,000 5.250% due 07/01/2018 ............ 1,826,021
3,000,000 5.250% due 07/01/2019 ............ 3,194,070
3,000,000 5.375% due 07/01/2020 ............ 3,194,580
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 1,405,000 Los Gatos-Saratoga, Joint Unified High
School District, GO, (Election of 1998),
Series B,
5.750% due 12/01/2021 ............ $ 1,584,700
Montebello, Unified School District,
Capital Appreciation, GO, (FGIC Insured):
1,280,000 Zero coupon due 08/01/2012 ....... 882,061
800,000 Zero coupon due 08/01/2013 ....... 522,152
460,000 Zero coupon due 08/01/2014 ....... 284,216
1,490,000 Mountain View, Shoreline Regional Park
Community, Tax Allocation Revenue,
Series A, (MBIA Insured),
5.250% due 08/01/2015 ............ 1,646,569
2,785,000 Needles, Public Utilities Authority, Utilities
Revenue, (Utilities System Acquisition
Project), Series A,
6.500% due 02/01/2022 ............ 2,841,424
1,790,000 Newport-Mesa Unified School District, GO,
(Election of 2000), (MBIA Insured),
5.000% due 08/01/2017 ............. 1,934,775
3,500,000 Novato, Community Facilities District No. 1,
Special Tax Revenue,
7.200% due 08/01/2015** .......... 3,673,250
Oakland, Alameda County Unified School
District, COP, (Energy Retrofit Project):
2,645,000 (Pre-refunded to 11/15/2005),
7.000% due 05/15/2011 ............ 3,062,434
3,445,000 (Pre-refunded to 11/15/2006),
6.750% due 11/15/2014 ............ 4,104,855
1,700,000 Oakland, Revenue Bonds, (YMCA East Bay
Project),
7.100% due 06/01/2010 ............ 1,849,872
1,565,000 Oakland, Unified School District, GO,
(Alameda County School Improvements),
(FSA Insured),
5.000% due 08/01/2017 ............ 1,650,293
1,500,000 Oceanside, COP, Series A, (AMBAC Insured),
5.250% due 04/01/2018 ............ 1,646,430
4,000,000 Orange County, COP, Series A, (MBIA
Insured),
5.800% due 07/01/2016 ............ 4,513,040
1,495,000 Oxnard, Financing Authority, Wastewater
Revenue, (FGIC Insured),
5.000% due 06/01/2020 ............ 1,589,305
1,280,000 Palm Desert, Financing Authority, Tax
Allocation Revenue, (Project Area No. 2),
Series A, (MBIA Insured),
5.000% due 08/01/2022 ............ 1,352,742
Palm Springs, Financing Authority, Lease
Revenue, (Convention Center Project),
Series A, (MBIA Insured):
1,250,000 5.250% due 11/01/2017 ............ 1,380,600
1,315,000 5.250% due 11/01/2018 ............ 1,442,384
1,995,000 Pomona, COP, (Mission Promenade Project),
Series AE, (AMBAC Insured),
5.375% due 10/01/2032 ............ 2,131,159
See Notes to Financial Statements.
73
PORTFOLIO of INVESTMENTS (continued)
CALIFORNIA MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
$ 5,000,000 Pomona, Public Financing Authority, Tax
Allocation Revenue, (Merged
Redevelopment Project), Series AD,
(MBIA Insured),
5.000% due 02/01/2021** .......... $ 5,223,300
1,000,000 Pomona, Unified School District, GO,
(MBIA Insured),
6.150% due 08/01/2030 ............ 1,196,760
Port of Oakland, Airport & Marina
Revenue, AMT:
5,000,000 Series K, (FGIC Insured),
5.750% due 11/01/2029 ............ 5,468,200
Series N, (MBIA Insured):
5,260,000 5.000% due 11/01/2011 ............ 5,743,710
3,000,000 5.000% due 11/01/2022 ............ 3,088,050
Port of Oakland, Special Facilities Revenue,
(Mitsui O.S.K. Lines Ltd. Project),
Series A, AMT:
3,030,000 6.750% due 01/01/2012 ............ 3,096,933
1,465,000 6.800% due 01/01/2019 ............ 1,482,477
1,000,000 Poway, Redevelopment Agency, Tax
Allocation Revenue, (Paguay
Redevelopment Project), (AMBAC
Insured),
5.375% due 06/15/2019 ............ 1,103,060
1,965,000 Poway, Unified School District, Special
Tax Revenue, (Community Facilities
District No. 1), (MBIA Insured),
5.000% due 10/01/2026 ............ 2,025,306
2,750,000 Redding, Electrical Systems, COP, (Inverse
Floater), (MBIA Insured),
11.387% due 07/01/2022+ .......... 3,920,785
1,000,000 Redondo Beach, Public Financing Authority,
Revenue Bonds, (South Bay Center
Redevelopment Project),
7.125% due 07/01/2026 ............ 1,073,150
2,680,000 Rio Linda, Union Elementary School District,
GO, (Election of 2002), Series A,
(FSA Insured),
5.000% due 08/01/2027 ............ 2,768,199
Riverside County, Public Financing
Authority, COP:
1,500,000 5.750% due 05/15/2019 ............ 1,524,165
2,100,000 5.800% due 05/15/2029 ............ 2,110,248
Rocklin, Unified School District, Capital
Appreciation, GO, (FGIC Insured):
1,030,000 Zero coupon due 08/01/2014 ....... 597,318
1,210,000 Zero coupon due 08/01/2016 ....... 622,158
1,255,000 Zero coupon due 08/01/2017 ....... 609,164
1,360,000 Zero coupon due 08/01/2019 ....... 585,262
1,415,000 Zero coupon due 08/01/2020 ....... 574,179
1,225,000 Zero coupon due 08/01/2023 ....... 418,779
PRINCIPAL
AMOUNT VALUE
--------- -----
Rohnert Park, Community Development
Agency, Tax Allocation Revenue, (Rohnert
Redevelopment Project), (MBIA Insured):
$ 1,745,000 Zero coupon due 08/01/2021 ....... $ 707,824
1,755,000 Zero coupon due 08/01/2023 ....... 628,518
1,755,000 Zero coupon due 08/01/2025 ....... 554,527
1,755,000 Zero coupon due 08/01/2027 ....... 495,033
1,755,000 Zero coupon due 08/01/2029 ....... 442,787
Sacramento County, Airport System Revenue,
Series A, (FSA Insured):
2,425,000 5.250% due 07/01/2019 ............ 2,635,248
2,550,000 5.250% due 07/01/2020 ............ 2,756,907
2,000,000 Sacramento County, Sanitation District
Financing Authority, Sewer Revenue, ETM,
5.000% due 12/01/2016 ............ 2,076,520
1,500,000 Sacramento, City Financing Authority,
Lease Revenue, (City Hall &
Redevelopment Projects), Series A, (FSA
Insured),
5.000% due 12/01/2028 ............ 1,545,450
Salinas Valley, Solid Waste Authority,
Resource Recovery Revenue, AMT,
(AMBAC Insured):
2,475,000 5.250% due 08/01/2027 ............ 2,532,346
2,000,000 5.250% due 08/01/2031 ............ 2,043,200
995,000 Salinas, Improvement Board Act of 1915,
Special Tax Revenue, (Assessment
District No. 90-1), Series C-185,
5.400% due 09/02/2012 ............ 1,027,785
San Bernardino, Redevelopment Agency,
Tax Allocation Revenue, (San Sevaine
Redevelopment Project), Series A:
1,000,000 6.900% due 09/01/2018 ............ 1,078,650
2,000,000 7.100% due 09/01/2029 ............ 2,131,000
1,885,000 San Buenaventura, COP, Series B, (AMBAC
Insured),
5.500% due 01/01/2017 ............. 2,120,663
600,000 San Diego County, COP,
5.700% due 02/01/2028 ............. 615,000
San Diego, Redevelopment Agency, Auto
Parking Revenue:
1,000,000 (Centre City Redevelopment Project),
Series A,
6.400% due 09/01/2019 ............. 1,081,840
1,125,000 (Southcrest Redevelopment Project),
6.500% due 10/01/2025 ............. 1,219,905
4,000,000 San Diego, Water Authority Revenue, COP,
Series B, (Inverse Floater), (MBIA Insured),
11.320% due 04/08/2021+** ......... 5,241,760
1,000,000 San Dimas, Housing Authority Revenue,
(Charter Oak Mobile Home Project),
Series A,
5.700% due 07/01/2028 ............. 966,230
1,455,000 San Elijo, Joint Powers Authority, Loan
Agreement Revenue, (San Elijo
Wastewater Treatment Facilities), (FSA
Insured),
5.000% due 03/01/2020 ............. 1,544,904
See Notes to Financial Statements.
74
PORTFOLIO of INVESTMENTS (continued)
CALIFORNIA MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
San Francisco City and County,
International Airports Commission,
Airport Revenue, Second Series, AMT:
Issue 27A, (MBIA Insured):
$ 4,000,000 5.250% due 05/01/2026 ............ $ 4,085,120
3,000,000 5.250% due 05/01/2031** .......... 3,057,870
4,070,000 Issue 28A, (MBIA Insured),
5.250% due 05/01/2020** .......... 4,264,750
San Francisco City and County, MFMR,
Series A, (FNMA Collateral):
930,000 6.350% due 02/15/2012 ............ 930,707
1,250,000 6.450% due 02/15/2024 ............ 1,251,038
4,295,000 San Francisco City and County, Public
Utilities Commission, Water Revenue,
Series A, (FSA Insured),
5.000% due 11/01/2017** .......... 4,619,616
San Francisco City and County,
Redevelopment Agency, Lease Revenue,
(George R. Moscone Convention Center
Project):
2,000,000 Zero coupon due 07/01/2011 ....... 1,427,020
3,000,000 Zero coupon due 07/01/2013 ....... 1,912,770
2,000,000 (FSA Insured),
5.000% due 07/01/2017 ............ 2,153,300
San Francisco City and County, Redevelopment
Financing Authority, Tax Allocation Revenue, (San Francisco
Redevelopment Projects), Series A, (FSA Insured):
3,150,000 5.000% due 08/01/2017 ............ 3,305,421
3,320,000 5.000% due 08/01/2018 ............ 3,468,504
2,000,000 San Francisco, State Building Authority,
Lease Revenue, (San Francisco Civic
Center Complex), Series A, (AMBAC
Insured),
5.250% due 12/01/2016 ............ 2,203,980
4,815,000 San Jose, Airport Revenue, Series A,
(FSA Insured),
5.375% due 03/01/2017 ............ 5,372,047
9,310,000 San Jose, Financing Authority, Lease
Revenue, (Convention Center Project),
Series F, (MBIA Insured),
5.000% due 09/01/2018** .......... 9,933,305
1,000,000 San Jose, MFHR, (Sixth & Martha Family
Apartments), AMT, (FNMA Collateral),
5.875% due 03/01/2033 ............ 1,054,520
San Jose, Unified School District, COP,
(FSA Insured):
1,000,000 Zero coupon due 01/01/2009 ....... 831,790
1,000,000 Zero coupon due 01/01/2010 ....... 785,910
1,795,000 San Juan, Basin Authority, Lease Revenue,
(Ground Water Recovery Project),
(AMBAC Insured),
5.000% due 12/01/2022 ............ 1,880,568
PRINCIPAL
AMOUNT VALUE
--------- -----
San Juan, Unified School District, GO,
(FSA Insured):
$ 1,825,000 Zero coupon due 08/01/2020 ....... $ 785,681
1,000,000 Zero coupon due 08/01/2021 ....... 405,630
1,820,000 Zero coupon due 08/01/2022 ....... 693,475
2,000,000 San Marcos, Public Facilities Authority,
Revenue Bonds,
5.800% due 09/01/2018 ............ 2,100,360
1,000,000 San Mateo County, Joint Powers Authority,
Lease Revenue, (Capital Projects Program),
(MBIA Insured),
6.500% due 07/01/2015 ............ 1,258,270
3,035,000 Santa Ana, Unified School District, GO,
(Election of 1999), Series B, (FGIC
Insured),
Zero coupon due 08/01/2011 ....... 2,202,135
1,500,000 Santa Clarita, Community College District,
GO, (FGIC Insured),
5.125% due 08/01/2026 ............ 1,565,010
1,500,000 Santa Maria, Joint Unified High School
District, GO, Series A, (FSA Insured),
5.250% due 08/01/2025 ............ 1,605,060
1,350,000 Santa Monica-Malibu, Unified School
District, GO,
5.750% due 08/01/2025 ............ 1,488,740
4,725,000 Santa Rosa, Mortgage Revenue, (Channate
Lodge), (FHA Insured),
6.700% due 12/01/2024** .......... 4,930,963
2,215,000 Simi Valley, Community Development
Agency, Commonwealth Mortgage
Revenue, (Sycamore Plaza II),
6.000% due 09/01/2012+++ ......... 2,363,759
1,500,000 South Gate, Public Financing Authority, Tax
Allocation Revenue, (South Gate
Redevelopment Project No. 1), (XLCA
Insured),
5.000% due 09/01/2016 ............ 1,634,850
1,225,000 South Pasadena, Unified School District, GO,
(Election of 2002), Series A, (FGIC
Insured),
5.000% due 08/01/2021*** ......... 1,296,981
1,305,000 Stockton, Community Facilities District No. 1,
Special Tax Revenue, (Mello Roos-Weston
Ranch), Series A,
6.000% due 09/01/2018 ............ 1,377,206
1,780,000 Stockton-East, Water District, COP, (1975 &
1990 Projects), Series A , (FGIC Insured),
5.250% due 04/01/2022 ............ 1,914,568
3,270,000 Temecula, Redevelopment Agency, Tax
Allocation Revenue, (Redevelopment
Project No.1), (MBIA Insured),
5.250% due 08/01/2036** .......... 3,432,061
1,000,000 Torrance, Hospital Revenue, (Torrance
Memorial Medical Center), Series A,
6.000% due 06/01/2022 ............ 1,085,350
3,225,000 Trinity County, Public Utilities District, COP,
(Electric Distribution Facilities Project),
AMT, (AMBAC Insured),
5.000% due 04/01/2023 ............ 3,307,302
See Notes to Financial Statements.
75
PORTFOLIO of INVESTMENTS (continued)
CALIFORNIA MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
University of California, College &
University Revenue, (Multi Purpose
Projects), (FGIC Insured):
$ 1,720,000 Series F,
5.000% due 09/01/2016 ............ $ 1,853,162
Series M:
2,260,000 5.125% due 09/01/2017 ............ 2,450,360
4,635,000 5.125% due 09/01/2018** .......... 4,990,597
2,035,000 Vallejo City, Unified School District, GO,
Series A, (MBIA Insured),
5.900% due 02/01/2021 ............ 2,434,837
2,025,000 Vallejo, Public Financing Authority,
Revenue Bonds, (Fairgrounds Drive
Assessment District),
5.700% due 09/02/2011 ............ 2,086,439
3,040,000 Ventura County, Public Financing Authority,
COP, Series I, (FSA Insured),
5.250% due 08/15/2016 ............ 3,339,926
Walnut, Public Financing Authority, Tax
Allocation Revenue, (Walnut
Improvement Project), (AMBAC Insured):
1,660,000 5.375% due 09/01/2018 ............ 1,832,906
2,305,000 5.375% due 09/01/2022 ............ 2,500,671
1,350,000 West Contra Costa, Unified School District,
GO, Series A, (MBIA Insured),
5.350% due 02/01/2017 ............ 1,548,207
------------
585,372,417
------------
VIRGIN ISLANDS - 0.3%
Virgin Islands Public Finance Authority,
Revenue Bonds, (Gross Receipts of Taxes
on Loan Notes), Series A:
1,000,000 5.625% due 10/01/2010 ............ 1,089,730
1,000,000 6.375% due 10/01/2019 ............ 1,115,930
------------
2,205,660
------------
Total Municipal Bonds and Notes
(Cost $556,210,641) .............. 587,578,077
------------
SHORT-TERM MUNICIPAL BONDS - 2.4%
1,700,000 California State Department of Water
Resources, Power Supply Revenue,
Series B-2,
1.350% due 05/01/2022++ .......... 1,700,000
4,750,000 California Statewide Communities
Development Authority, COP,
(John Muir/Mt. Diablo Health Center),
(AMBAC Insured),
1.260% due 08/15/2027++ .......... 4,750,000
5,035,000 Irvine Ranch, Water District, Consolidated
Revenue Bonds,
1.350% due 10/01/2005++ .......... 5,035,000
Irvine Ranch, Water District, GO:
1,360,000 (Consolidated Improvement Districts
Nos. 140, 186, 188 & 240),
1.260% due 06/01/2015++ .......... 1,360,000
1,000,000 (Consolidated Improvement Districts
Nos. 140, 240, 105 & 250),
1.350% due 04/01/2033++ .......... 1,000,000
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 400,000 Irvine, Improvement Board Act of 1915,
Special Tax Revenue, (Assessment
District No. 97-16),
1.350% due 09/02/2022++ .......... $ 400,000
------------
Total Short-Term Municipal Bonds
(Cost $14,245,000) ............... 14,245,000
------------
TOTAL INVESTMENTS (Cost $570,455,641*) ... 101.1% 601,823,077
OTHER ASSETS AND LIABILITIES (NET) ....... (1.1) (6,788,927)
----- ------------
NET ASSETS ............................... 100.0% $595,034,150
===== ============
- --------------------
* Aggregate cost for federal tax purposes.
** Security segregated as collateral for when-issued securities or futures
contracts.
*** Security purchased on a when-issued basis.
+ Variable rate security. The interst rate shown reflects the rate in effect
at April 30, 2003.
++ Variable rate securities payable upon demand with not more that five
business days' notice, and secured by bank letters of credit or guarantees
by certain corporations. The interest rate shown reflects the rate in
effect at April 30, 2003.
+++ Security deemed illiquid by the Portfolio Manager.
California Municipal Fund had the following industry concentrations greater
than 10% at April 30, 2003 (as a percentage of net assets) (unaudited):
General Purpose 35.2%
General Obligation 22.6%
California Municipal Fund had the following insurance concentrations greater
than 10% at April 30, 2003 (as a percentage of net assets) (unaudited):
MBIA 27.8%
AMBAC 13.4%
FSA 10.7%
FGIC 10.0%
See Notes to Financial Statements.
76
PORTFOLIO of INVESTMENTS (continued)
CALIFORNIA MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
NUMBER OF UNREALIZED
CONTRACTS VALUE DEPRECIATION
- --------------------------------------------------------------------------------
FUTURES CONTRACTS-SHORT POSITION
762 U.S. 5 Year Treasury Note,
June 2003 ............ $ 86,677,500 $ (334,451)
181 U.S. 10 Year Treasury Note,
June 2003 ............ 20,837,625 (53,087)
------------
Net Unrealized Depreciation of
Future Contracts .................. $ (387,538)
============
- --------------------------------------------------------------------------------
GLOSSARY OF TERMS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
CIFG -- CDC IXIS Financial Guaranty North America, Inc.
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Federal Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GO -- General Obligation Bond
IBC -- Insured Bond Certificate
IDR -- Industrial Development Revenue
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
PCR -- Pollution Control Revenue
SFMR -- Single Family Mortgage Revenue
TCRS -- Transferable Custodial Receipts
XLCA -- XL Capital Assurance
See Notes to Financial Statements.
77
PORTFOLIO of INVESTMENTS
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES - 95.5%
CALIFORNIA - 93.2%
$ 1,000,000 ABAG Financing Authority for Nonprofit
Corporations, COP,
(Episcopal Homes Foundation),
6.250% due 08/15/2030 ............ $ 1,071,260
Alameda County, COP, (MBIA Insured):
1,000,000 (Santa Rita Jail Project),
5.375% due 06/01/2009 ............ 1,157,200
1,000,000 Series A,
5.375% due 12/01/2010 ........... 1,150,310
1,000,000 Alameda County, Public Financing Authority,
Lease Revenue,
5.000% due 09/02/2008 ............ 1,025,750
Anaheim, Public Financing Authority, Power &
Light Revenue, (Electric System Generation
Project), Series B, (FSA Insured):
2,000,000 5.000% due 10/01/2015** .......... 2,192,640
2,000,000 5.250% due 10/01/2014** .......... 2,252,220
1,810,000 5.250% due 10/01/2017 ............ 1,998,765
2,000,000 Anaheim, Public Financing Authority,
Lease Revenue, (Convention Center
Project), Series A, (AMBAC Insured),
5.250% due 08/01/2013** .......... 2,261,840
Atascadero, Unified School District,
COP, (Measure B Capital
Projects), Series A, (MBIA Insured):
1,000,000 3.000% due 08/01/2008*** ......... 1,029,170
1,000,000 3.250% due 08/01/2009*** ......... 1,028,110
150,000 California Educational Facilities Authority,
College & University Revenue,
(University of San Diego), (AMBAC
Insured),
Zero coupon due 10/01/2009 ....... 121,650
1,000,000 California Educational Facilities Authority,
Student Loan Revenue, (California Loan
Program), Series A, AMT, (MBIA Insured),
5.100% due 03/01/2014 ............ 1,065,030
1,000,000 California Health Facilities Financing
Authority, Health Care Revenue, (Insured
De Las Companas Project), Series A,
(AMBAC Insured),
5.875% due 07/01/2009 ............ 1,102,800
California Housing Finance Agency,
Mortgage Revenue:
1,170,000 Series B-1, AMT, (AMBAC-TCRS
Insured),
6.200% due 02/01/2007** .......... 1,196,653
445,000 Series E, (MBIA Insured),
6.050% due 08/01/2006 ............ 479,728
Series L, AMT, (MBIA Insured):
330,000 5.000% due 08/01/2008 ............ 359,195
500,000 5.100% due 02/01/2009 ............ 540,900
Series N, AMT, (AMBAC Insured):
1,000,000 5.000% due 08/01/2008 ............ 1,088,470
1,000,000 5.100% due 02/01/2009 ............ 1,081,800
300,000 California Housing Finance Agency,
SFMR, Series D1,
4.750% due 08/01/2009 ............ 323,817
PRINCIPAL
AMOUNT VALUE
--------- -----
California State Department of Water
Resources, Power Supply Revenue,
Series A:
$ 1,675,000 5.250% due 05/01/2015 ............ $ 1,833,723
2,000,000 (AMBAC Insured),
5.500% due 05/01/2016 ............ 2,259,180
2,000,000 (MBIA Insured),
5.250% due 05/01/2010 ............ 2,253,800
4,000,000 (XLCA Insured),
5.375% due 05/01/2017 ............ 4,426,000
3,000,000 California State Department of Water
Resources, Water System Revenue,
(Central Valley Project), Series Y, (FGIC
Insured),
5.250% due 12/01/2014 ............ 3,405,960
California State Public Works Board, Lease
Revenue:
1,000,000 (California Community Colleges), Series A,
(AMBAC Insured),
5.250% due 12/01/2012 ............ 1,111,530
2,000,000 (California State University), Series A,
(AMBAC Insured),
5.375% due 10/01/2017 ............ 2,207,860
(Department of Corrections Program):
2,000,000 Series A, (AMBAC Insured),
5.250% due 06/01/2012** .......... 2,264,520
1,000,000 Series B,
5.250% due 01/01/2013 ............ 1,097,260
1,750,000 Series E, (MBIA-IBC Insured),
5.500% due 06/01/2015 ............ 2,007,722
1,000,000 (Department of Corrections-Ten
Administrative Segregation Housing Units),
Series A, (AMBAC Insured),
5.250% due 03/01/2016 ............ 1,102,000
2,750,000 (Department of General Services), (Capitol
East End Complex-Blocks 171-174 & 225),
Series A, (AMBAC Insured),
5.250% due 12/01/2014 ............ 3,090,092
1,000,000 (Regents University), Series A, (AMBAC
Insured),
5.250% due 06/01/2014 ............ 1,126,780
1,000,000 California State University, Fresno
Association Inc. Revenue, (Auxiliary
Organization Event Center),
5.000% due 07/01/2012 ............ 1,056,020
California State, GO:
2,000,000 5.000% due 02/01/2010 ............ 2,170,540
1,000,000 (FGIC Insured),
6.200% due 09/01/2005** .......... 1,109,180
2,000,000 (FGIC-TCRS Insured),
7.000% due 10/01/2010 ............ 2,495,340
(FSA Insured):
3,000,000 5.250% due 02/01/2010** .......... 3,377,070
1,000,000 5.500% due 03/01/2012** .......... 1,133,420
(MBIA-IBC Insured):
3,000,000 5.250% due 02/01/2011** .......... 3,374,220
2,000,000 5.750% due 10/01/2010** .......... 2,337,280
2,000,000 6.250% due 09/01/2012** .......... 2,430,260
1,985,000 (XLCA Insured),
5.500% due 03/01/2011** .......... 2,255,655
See Notes to Financial Statements.
78
PORTFOLIO of INVESTMENTS (continued)
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
$ 1,600,000 California Statewide Communities
Development Authority, COP, (Children's
Hospital of Los Angeles Project), (MBIA
Insured),
6.000% due 06/01/2007 ........... $ 1,840,240
1,000,000 Calleguas-Las Virgines, Public Financing
Authority, Water Revenue, (Calleguas
Municipal Water District Project), Series A,
(MBIA Insured),
5.000% due 07/01/2015 ........... 1,102,610
1,000,000 Carson, Redevelopment Agency, Tax
Allocation Revenue, (Area No. 1 Project),
(MBIA Insured),
5.500% due 10/01/2014 ........... 1,165,870
1,000,000 Castaic Lake, Water Agency, COP, (Water
System Improvement Project), Series A,
(MBIA Insured),
5.600% due 08/01/2005 ........... 1,074,270
1,240,000 Chino Valley, Unified School District, COP,
Series A, (FSA Insured),
5.250% due 09/01/2013 ........... 1,389,060
Emeryville, Public Financing Authority,
Revenue Bonds, (Emeryville
Redevelopment Project), Series A,
MBIA Insured):
1,265,000 5.250% due 09/01/2015 ........... 1,425,908
1,400,000 5.250% due 09/01/2017 ........... 1,556,982
1,795,000 Escondido, Unified School District, GO,
Series A, (FSA Insured),
5.250% due 08/01/2016 ........... 1,995,609
2,540,000 Fontana, Public Financing Authority, Tax
Allocation Revenue, (North Fontana
Redevelopment Project), Series A, (FSA
Insured),
5.500% due 09/01/2010** ......... 2,933,903
Foothill Eastern Transportation Corridor
Agency, Toll Road Revenue, (MBIA
Insured):
1,000,000 4.375% due 01/15/2007 ........... 1,085,200
2,000,000 5.000% due 01/15/2016** ......... 2,150,820
685,000 Golden West Schools Financing Authority,
Revenue Bonds, Series A, (MBIA Insured),
5.650% due 02/01/2012 ........... 797,134
1,075,000 Hartnell, Community College District, GO,
(Election of 2002), Series A, (MBIA
Insured),
5.000% due 08/01/2016 ........... 1,179,329
1,500,000 Huntington Beach, MFHR, (Huntington
Village Apartments Project), Series A,
AMT, (FNMA Collateral),
4.800% due 11/01/2016 ........... 1,500,255
Imperial County, Local Transportation
Authority, Sales Tax Revenue, (MBIA
Insured):
940,000 2.500% due 03/01/2007*** ........ 951,966
965,000 3.000% due 03/01/2008*** ........ 986,732
750,000 3.000% due 03/01/2009*** ........ 755,962
1,000,000 Inland Empire Solid Waste Financing
Authority, Lease Revenue, (Landfill
Improvement Financing Project), Series B,
AMT, (FSA Insured),
6.000% due 02/01/2006 ........... 1,114,990
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 1,195,000 Kings Canyon, Joint Unified School District,
GO, (FGIC Insured),
5.375% due 08/01/2015 ........... $ 1,344,542
1,080,000 Long Beach, Bond Financing Authority, Lease
Revenue, (Public Safety Facilities
Projects), (AMBAC Insured),
5.250% due 11/01/2013 ........... 1,224,666
175,000 Los Angeles County Schools Regionalized
Business Services Corporation, Capital
Appreciation, COP, (Los Angeles County
Schools Pooled Financing Program),
Series C, (AMBAC Insured),
4.400% due 11/01/2006 ........... 175,016
1,250,000 Los Angeles County, Capital Asset Leasing
Corporation, Leasehold Revenue,
(AMBAC Insured),
6.000% due 12/01/2006** ......... 1,436,913
1,000,000 Los Angeles County, Metropolitan
Transportation Authority, Sales Tax
Revenue, (Proposition C Second Senior),
Series A, (AMBAC Insured),
5.600% due 07/01/2011 ........... 1,099,250
230,000 Los Angeles, Community Redevelopment
Agency, Housing Revenue, Series C,
(FHA Collateral), (AMBAC Insured),
6.000% due 07/01/2004 ........... 235,688
2,000,000 Los Angeles, Department of Airports,
Airport Revenue, (Ontario International
Airport), Series A, AMT, (FGIC Insured),
5.900% due 05/15/2012 ........... 2,222,100
1,000,000 Los Angeles, GO, Series A, (MBIA Insured),
5.000% due 09/01/2016 ........... 1,081,660
2,500,000 Los Angeles, Harbor Department Revenue,
Series B, AMT,
5.500% due 08/01/2008** ......... 2,725,300
1,500,000 Los Angeles, State Building Authority, Lease
Revenue, (State of California Department
of General Services Lease Project), Series A,
(MBIA-IBC Insured),
5.625% due 05/01/2011 ........... 1,739,535
Los Angeles, Unified School District, COP,
Series B:
2,000,000 (FSA Insured),
5.000% due 10/01/2011 ........... 2,241,080
2,000,000 (MBIA Insured),
5.500% due 10/01/2007 ........... 2,285,980
Los Angeles, Unified School District, GO,
Series A, (MBIA Insured):
2,000,000 5.375% due 07/01/2016 ........... 2,268,060
2,000,000 5.375% due 07/01/2017 ........... 2,251,860
2,105,000 M-S-R Public Power Agency, San Juan
Project Revenue, Series I, (MBIA Insured),
5.000% due 07/01/2015 ........... 2,284,725
199,000 Modesto, Mortgage Revenue, (Stonebridge
Project), Series A, (GNMA Collateral),
5.875% due 12/01/2004 ........... 201,376
1,015,000 Nevada Irrigation District, COP, (FGIC
Insured),
5.000% due 01/01/2013 ........... 1,129,685
1,000,000 North Orange County, Community College
District, GO, Series A, (MBIA Insured),
5.250% due 08/01/2014 ........... 1,133,040
See Notes to Financial Statements.
79
PORTFOLIO of INVESTMENTS (continued)
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
$ 105,000 Oakland, Improvement Board Act of 1915,
Special Tax Revenue, (Medical Hill
Parking Assessment District No. 3),
(MBIA Insured),
6.000% due 09/02/2004 ........... $ 109,883
1,575,000 Oceanside, COP, Series A, (AMBAC Insured),
5.250% due 04/01/2016 1,754,645
Ontario, Redevelopment Financing Authority,
Lease Revenue:
1,055,000 (Capital Projects), (AMBAC Insured),
5.500% due 08/01/2016 ........... 1,190,705
1,060,000 (Project No.1, Center City & Cimarron
Projects), (MBIA Insured),
5.250% due 08/01/2016 ........... 1,172,137
1,000,000 Orange County, Public Financing Authority,
Lease Revenue, (Juvenile Justice Center
Facility Project), (AMBAC Insured),
5.375% due 06/01/2016 ........... 1,127,540
795,000 Palm Desert, Financing Authority, Tax
Allocation Revenue, (Project Area No. 2),
Series A, (MBIA Insured),
5.000% due 08/01/2012 ........... 890,853
Paramount, Redevelopment Agency, Tax
Allocation Revenue, (Area No. 1 Project),
(MBIA Insured):
1,610,000 6.100% due 08/01/2006** ......... 1,662,470
1,700,000 6.100% due 08/01/2007** ......... 1,755,403
1,000,000 Port of Oakland, Airport & Marina Revenue,
Series N, AMT, (MBIA Insured),
5.000% due 11/01/2011 ........... 1,091,960
3,150,000 Rancho, Santiago Community College
District, GO, (Election of 2002), Series A,
(MBIA Insured),
5.000% due 09/01/2016 ........... 3,457,755
720,000 Redondo Beach, Public Financing Authority,
Revenue Bonds, (South Bay Center
Redevelopment Project),
6.750% due 07/01/2006 ........... 773,921
1,100,000 Rialto, Utility Authority, Wastewater
Enterprise Sewer Revenue, (MBIA Insured),
4.000% due 11/01/2008*** ........ 1,189,331
2,090,000 Richmond, Joint Powers Financing Authority,
Tax Allocation Revenue, Series A, (MBIA
Insured),
5.500% due 09/01/2017 ........... 2,344,750
1,100,000 Riverside, Special Tax Revenue, (Community
Facilities District No. 90-1-A), (MBIA
Insured),
5.500% due 09/01/2013 ........... 1,251,426
2,000,000 San Bernardino County, COP, (West Valley
Detention Center Refinancing Project),
Series B, (MBIA Insured),
5.000% due 11/01/2009** ......... 2,263,480
San Francisco City and County,
International Airports Commission,
Airport Revenue, Second Series, AMT:
2,485,000 Issue 18A, (MBIA Insured),
6.000% due 05/01/2006** ......... 2,768,514
Issue 22, (AMBAC Insured):
1,705,000 6.000% due 05/01/2006** ......... 1,899,523
1,000,000 6.000% due 05/01/2008 ........... 1,144,500
PRINCIPAL
AMOUNT VALUE
--------- -----
$ 690,000 Issue 23A, (FGIC Insured),
5.500% due 05/01/2005 ........... $ 739,970
2,690,000 Issue 28A, (MBIA Insured),
5.000% due 05/01/2012 ........... 2,905,415
1,000,000 San Francisco City and County, Public
Utilities Commission, Water Revenue,
Series A, (FSA Insured),
5.000% due 11/01/2016 ........... 1,083,090
2,325,000 San Francisco City and County,
Redevelopment Agency, Tax Allocation
Revenue, (San Franciso Redevelopment
Projects), Series B, (FGIC Insured),
5.250% due 08/01/2017 ........... 2,589,074
2,000,000 San Jose, Airport Revenue, Series A, (FSA
Insured),
5.375% due 03/01/2017 ........... 2,231,380
1,200,000 San Jose, Financing Authority, Lease Revenue,
(Convention Center Project),
Series F, (MBIA Insured),
5.000% due 09/01/2016 ........... 1,297,992
1,000,000 San Jose, Unified School District, COP,
(FSA Insured),
Zero coupon due 01/01/2008 ...... 875,610
San Mateo, Unified High School District,
Capital Appreciation, GO, (Election
of 2000), Series B, (FGIC Insured):
1,010,000 Zero coupon due 09/01/2011 ...... 731,068
900,000 Zero coupon due 09/01/2012 ...... 618,120
1,900,000 Zero coupon due 09/01/2013 ...... 1,235,817
1,050,000 Santa Ana, COP, (Santa Ana Recycling
Project), Series A, AMT, (AMBAC
Insured),
5.400% due 05/01/2007 ........... 1,130,787
1,000,000 Santa Ana, Unified School District, GO,
(Election of 1999), Series B, (FGIC
Insured),
Zero coupon due 08/01/2008 ...... 859,870
650,000 Santa Clara, Redevelopment Agency, Tax
Allocation Revenue, (Bay Shore North
Project), (AMBAC Insured),
7.000% due 07/01/2010 ........... 788,145
1,000,000 Santa Clara, Unified School District, GO,
(MBIA-IBC Insured),
5.500% due 07/01/2017 ........... 1,120,820
Santa Maria, Redevelopment Agency,
Lease Revenue, (Town Center &
Westside Parking Facilities Project),
(AMBAC Insured):
1,215,000 5.000% due 06/01/2012 ........... 1,354,263
1,325,000 5.000% due 06/01/2013 ........... 1,476,540
1,085,000 5.250% due 06/01/2015 ........... 1,219,139
1,160,000 Shasta, Joint Powers Financing Authority,
Lease Revenue, (County Administration
Building Project), Series A, (MBIA
Insured),
5.250% due 04/01/2017 ........... 1,284,236
1,000,000 South Gate, Public Financing Authority, Tax
Allocation Revenue, (South Gate
Redevelopment Project No. 1), (XLCA
Insured),
5.000% due 09/01/2016 ........... 1,089,900
See Notes to Financial Statements.
80
PORTFOLIO of INVESTMENTS (continued)
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------- -----
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
$ 1,300,000 South Orange County, Public Financing
Authority, Special Tax Revenue, (Foothill
Area-Mello Roos), Series C, (FGIC Insured),
6.500% due 08/15/2010 ........... $ 1,579,123
995,000 Southern California Home Financing
Authority, MFHR, (The Fountains Project),
Series A, AMT, (FNMA Collateral),
5.400% due 01/01/2027 ........... 1,055,665
960,000 Stanton, MFHR, (Continental Gardens LP
Project), AMT, (FNMA Collateral),
5.625% due 08/01/2029 ........... 1,058,717
1,305,000 Stockton, Community Facilities District
No. 1, Supplemental Tax Revenue, (Mello
Roos-Weston Ranch), Series A,
5.500% due 09/01/2009 ........... 1,406,464
Sunnyvale, Solid Waste Revenue, (AMBAC
Insured):
1,000,000 5.250% due 10/01/2012 ........... 1,101,560
1,000,000 5.500% due 10/01/2014 ........... 1,118,160
1,000,000 5.500% due 10/01/2016 ........... 1,104,760
1,000,000 Tracy, Area Public Facilities Financing
Agency, Special Tax Revenue, (Community
Facilities District No. 87-1-H),
(MBIA Insured),
5.875% due 10/01/2013 ........... 1,143,250
1,070,000 University of California, College & University
Revenue, Series A, (CONNIE LEE Insured),
5.500% due 09/01/2006 ........... 1,084,616
815,000 Valley Health Systems, Hospital Revenue,
Series A, (ACA Insured),
6.125% due 05/15/2005** ......... 849,083
-----------
188,521,466
-----------
GUAM - 0.6%
1,000,000 Guam Government, GO, Series A, (FSA
Insured),
5.500% due 12/01/2011 ........... 1,159,810
-----------
PUERTO RICO - 1.7%
3,000,000 Puerto Rico Commonwealth, GO, Series E,
(MBIA Insured),
5.000% due 07/01/2028*** ........ 3,349,140
-----------
Total Municipal Bonds and Notes
(Cost $185,283,499) ............. 193,030,416
-----------
SHORT-TERM MUNICIPAL BONDS - 10.0%
California Statewide Communities
Development Authority, COP:
6,525,000 (John Muir/Mt. Diablo Health Center),
(AMBAC Insured),
1.260% due 08/15/2027+ .......... 6,525,000
7,335,000 (MBIA Insured),
1.260% due 04/01/2028+ .......... 7,335,000
2,400,000 M-S-R Public Power Agency, San Juan
Project Revenue, Sub. Lien, Series F,
(MBIA Insured),
1.300% due 07/01/2022+ .......... 2,400,000
3,950,000 Orange County, Sanitation Districts Nos. 1-3,
5-7 & 11, COP, (AMBAC Insured),
1.350% due 08/01/2016+ .......... 3,950,000
-----------
Total Short-Term Municipal Bonds
(Cost $20,210,000) .............. 20,210,000
-----------
VALUE
-----
TOTAL INVESTMENTS (Cost $205,493,499*) ... 105.5% $213,240,416
OTHER ASSETS AND LIABILITIES (NET) ........ (5.5) (11,031,169)
----- ------------
NET ASSETS .............................. 100.0% $202,209,247
===== ============
- --------------------
* Aggregate cost for federal tax purposes.
** Security segregated as collateral for when-issued securities or futures
contracts.
*** Security purchased on a when-issued basis.
+ Variable rate securities payable upon demand with not more that five
business days' notice, and secured by bank letters of credit or guarantees
by certain corporations. The interest rate shown reflects the rate in
effect at April 30, 2003.
California Insured Intermediate Municipal Fund had the following industry
concentrations greater than 10% at April 30, 2003 (as a percentage of net
assets) (unaudited):
General Purpose 30.2%
General Obligation 24.6%
Transportation 10.6%
Water & Sewer 10.4%
California Insured Intermediate Municipal Fund had the following insurance
concentrations greater than 10% at April 30, 2003 (as a percentage of net
assets) (unaudited):
MBIA 44.1%
AMBAC 24.0%
FSA 12.8%
NUMBER OF UNREALIZED
CONTRACTS VALUE DEPRECIATION
- -------------------------------------------------------------------------------
FUTURES CONTRACTS-SHORT POSITION
209 U.S. 5 Year Treasury Note,
June 2003 ............ $ 23,773,750 $ (91,754)
50 U.S. 10 Year Treasury Note,
June 2003 ............ 5,756,250 (14,665)
------------
Net Unrealized Depreciation of
Future Contracts .................. $ (106,419)
============
- --------------------------------------------------------------------------------
GLOSSARY OF TERMS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
CONNIE LEE -- College Construction Loan Association
COP -- Certificates of Participation
FGIC -- Federal Guaranty Insurance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GO -- General Obligation Bond
IBC -- Insured Bond Certificate
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
SFMR -- Single Family Mortgage Revenue
TCRS -- Transferable Custodial Receipts
XLCA -- XL Capital Assurance
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
81
NOTES to FINANCIAL statements (unaudited)
WM GROUP OF FUNDS
1. ORGANIZATION AND BUSINESS
WM Trust I ("Trust I") and WM Trust II ("Trust II") (collectively, the "Trusts")
were organized as Massachusetts business trusts on September 19, 1997 and
February 22, 1989, respectively. The Trusts are each registered under the
Investment Company Act of 1940, as amended ("1940 Act"), as open-end management
investment companies. Trust I and Trust II consist of 18 funds (each a "Fund,"
collectively, the "Funds"), 15 of which are presented in this report. Financial
statements for the other Funds included in the Trusts are presented in a
separate report. The Funds being reported on are as follows:
TRUST I TRUST II
EQUITY FUNDS EQUITY FUNDS
REITFund Growth Fund
Equity Income Fund Small Cap Stock Fund
Growth & Income Fund International Growth Fund
West Coast Equity Fund
Mid Cap Stock Fund
FIXED-INCOME FUNDS FIXED-INCOME FUND
U.S. Government Securities Fund Short Term Income Fund
Income Fund
High Yield Fund
MUNICIPAL FUNDS
MUNICIPAL FUND California Municipal Fund
Tax-Exempt Bond Fund California Insured
Intermediate Municipal Fund
WM Advisors, Inc. (the "Advisor" or "WM Advisors") serves as investment manager
to the Funds. The Advisor is a wholly-owned subsidiary of Washington Mutual,
Inc. ("Washington Mutual"), a publicly owned financial services company.
The Trusts are authorized to issue an unlimited number of shares of beneficial
interest, each without par value. Each of the Fixed-Income Funds and the Equity
Funds offer four classes of shares: Class A shares, Class B shares, Class C
shares and Class I shares. Each of the Municipal Funds currently offers Class A
shares, Class B shares and Class C shares. Class A shares of the Funds are
generally subject to an initial sales charge at the time of purchase. Certain
Class A shares purchased without an initial sales charge may be subject to a
contingent deferred sales charge ("CDSC") if redeemed within eighteen months
from the date of purchase. Class B shares are not subject to an initial sales
charge although they are generally subject to a CDSC if redeemed within five
years from the date of purchase. Class C shares are subject to an initial sales
charge at the time of purchase and are subject to a CDSC if redeemed within one
year from the date of purchase. In addition, redemptions from International
Growth Fund, Class A shares, including exchange redemptions, within 90 days of
purchase are subject to a redemption fee equal to 2.00% of the redemption
proceeds, which will be retained by the Fund. Class I shares are sold
exclusively to the various investment portfolios of the WM Strategic Asset
Management Portfolios, LLC (the "Portfolios"), an affliated open-end management
investment company, and affiliates of Washington Mutual and are not available
for direct purchase by investors. Class I shares are not subject to an initial
sales charge or CDSC.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America ("generally accepted
accounting principles") requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Funds in the
preparation of their financial statements.
PORTFOLIO VALUATION:
Securities that are primarily traded on a U.S. exchange (excluding securities
traded through the Nasdaq National Market System, which are valued at the Nasdaq
official close price) are valued at the last sale price on that exchange or, if
there were no sales during the day, at the mean of the current day's bid and
asked prices. Securities traded only on over-the-counter markets (other than the
Nasdaq National Market System and the U.S. Government Securities System) are
valued at the mean of the current bid and asked prices.
82
NOTES to FINANCIAL statements (unaudited) (continued)
WM GROUP OF FUNDS
The value of a foreign security is determined in its functional currency as of
the close of trading on the foreign exchange on which it is traded or at the
close of the New York Stock Exchange, if that is earlier, and that value is then
converted into its U.S. dollar equivalent using prevailing exchange rates on the
day the value of the foreign security is determined.
Options are generally valued at the last sale price or, in the absence of a last
sale price, at the mean of the current day's bid and asked prices. The value of
a futures contract equals the unrealized gain or loss on the contract, which is
determined by marking the contract to the current settlement price for a like
contract acquired on the day on which the futures contract is being valued.
Debt securities of U.S. issuers (other than short-term investments), including
municipal securities, are valued by one or more independent pricing services
(each a "Pricing Service") retained by the Trusts. When, in the judgment of a
Pricing Service, market quotations for these securities are readily available,
they are valued at the mean between the quoted bid and asked prices. Short-term
debt securities that mature in 60 days or less are valued at amortized cost,
which approximates market value. Securities for which market quotations are not
readily available are valued at fair value as determined by or under the
direction of the Board of Trustees.
REPURCHASE AGREEMENTS:
Each Fund may enter into repurchase agreement transactions. A repurchase
agreement is a purchase of an underlying debt obligation subject to an agreement
by the seller to repurchase the obligation at an agreed upon price and time. The
value of the collateral is at all times at least equal to the total amount of
the repurchase obligation. In the event of counterparty default, the Fund would
seek to use the collateral to offset losses incurred. There is potential loss to
the Fund in the event the Fund is delayed or prevented from exercising its right
to dispose of the collateral securities, including the risk of a possible
decline in the value of the underlying securities during the period while the
Fund seeks to assert its rights. WM Advisors, acting under the supervision of
the Board of Trustees, reviews the value of the collateral and the
creditworthiness of those banks and broker-dealers with whom each Fund enters
into repurchase agreements.
FUTURES CONTRACTS:
Certain Funds may enter into futures transactions. The underlying value of a
futures contract is incorporated within the unrealized appreciation/
(depreciation) shown in the Portfolio of Investments under the caption
"Futures Contracts."
Upon entering into a futures contract, the Fund is required to deposit with the
broker an amount of cash or cash equivalents equal to a certain percentage of
the contract amount (known as an initial margin deposit). Subsequent payments
(known as variation margins) are made or received by the Fund each day,
depending on the daily fluctuation of the value of the contract. The daily
changes in contract value are recorded as unrealized gains or losses and the
Fund recognizes a realized gain or loss when the contract is closed. Should
market conditions change unexpectedly, the Funds may not achieve the anticipated
benefits of the futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates, and the underlying hedged assets.
FOREIGN CURRENCY:
The books and records of the Funds are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars on a daily basis using prevailing exchange rates. Purchases and
sales of investment securities, income and expenses are translated on the
respective dates of such transactions.
Unrealized gains and losses, not relating to securities, which result from
changes in foreign currency exchange rates have been included in unrealized
appreciation/(depreciation) of investments. Unrealized gains and losses of
securities, which result from changes in foreign currency exchange rates as well
as changes in market prices of securities, have been included in unrealized
appreciation/(depreciation) of investments. Net realized foreign currency gains
and losses, which result from changes in exchange rates between trade date and
settlement date on investment transactions as well as the difference between the
amounts of interest and dividends recorded on the books of the Funds and the
amount actually received, have been included in realized gains/(losses) on
investment transactions. Foreign currency gains and losses, which result from
fluctuations in exchange rates between the initial purchase trade date and
subsequent sale trade date, have been included in realized gains/(losses) on
investment transactions.
83
NOTES to FINANCIAL statements (unaudited) (continued)
WM GROUP OF FUNDS
FORWARD FOREIGN CURRENCY CONTRACTS:
Certain Funds may enter into forward foreign currency contracts. Forward foreign
currency contracts are agreements to exchange one currency for another at a
future date and at a specified price. These Funds may use forward foreign
currency contracts to facilitate transactions in foreign securities and to
manage the Funds' foreign currency exposure. These contracts are valued daily,
and a Fund's net equity therein, representing unrealized gain or loss on the
contracts as measured by the difference between the forward foreign exchange
rates at the dates of entry into the contracts and the forward rates at the
reporting date, is included in the Statements of Assets and Liabilities.
Realized and unrealized gains and losses are included in the Statements of
Operations. These instruments involve market risk, credit risk, or both kinds of
risks, in excess of the amount recognized in the Statement of Assets and
Liabilities. Risks arise from the possible inability of counterparties to meet
the terms of their contracts and from movement in currency and securities values
and interest rates.
ILLIQUID INVESTMENTS:
Each Fund may invest a portion of its net assets in securities that are not
readily marketable, including: (1) repurchase agreements with maturities greater
than seven calendar days; (2) time deposits maturing in more than seven calendar
days; (3) certain futures contracts and options; (4) certain variable rate
demand notes having a demand period of more than seven days; and (5) securities,
the disposition of which are restricted under Federal securities laws, excluding
certain Rule 144A securities, as defined in the following paragraph.
Illiquid securities generally cannot be sold or disposed of in the ordinary
course of business (within seven days) at approximately the value at which the
Funds have valued the investments. This may have an adverse effect on the Fund's
ability to dispose of particular illiquid securities at fair market value and
may limit the Fund's ability to obtain accurate market quotations for purposes
of valuing the securities and calculating the net asset value of shares of the
Fund. The Funds may also purchase securities that are not registered under the
Securities Act of 1933, as amended (the "Act"), but that can be sold to
qualified institutional buyers in accordance with Rule 144A under the Act ("Rule
144A Securities"). Rule 144A Securities generally may be resold only to other
qualified institutional buyers. If a particular investment in Rule 144A
Securities is not determined to be liquid under the guidelines established by
the Board of Trustees, that investment will be included within a Fund's
limitation on investment in illiquid securities.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are recorded on a trade date basis (the date the order
to buy or sell is executed). Realized gains and losses from securities sold are
recorded on the identified cost basis. Securities purchased or sold on a
when-issued or delayed-delivery basis may be settled a month or more after the
trade date; interest income is not accrued until settlement date. Each Fund
instructs the custodian to segregate assets of the Fund with a current value at
least equal to the amount of its when-issued purchase commitments.
Interest income on debt securities is accrued daily. Premiums and discounts are
amortized using the interest method. Paydown gains and losses on mortgage-backed
and asset-backed securities are presented as an adjustment to interest income.
Dividend income is recorded on the ex-dividend date, except certain dividends
from foreign securities are recorded as soon as the Funds are informed of the
ex-dividend date. Each Fund's investment income and realized and unrealized
gains and losses are allocated among the classes of that Fund based upon the
relative average net assets of each class.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income of the Fixed-Income Funds and the Municipal
Funds are declared daily and paid monthly. Dividends from net investment income
of the REIT and Equity Income Funds are declared and paid quarterly. Dividends
from any net investment income of the Growth & Income, West Coast Equity, Mid
Cap Stock, Growth, Small Cap Stock and International Growth Funds are declared
and paid annually. Distributions of any net capital gains earned by a Fund are
distributed no less frequently than annually at the discretion of the Board of
Trustees. Additional distributions of net investment income and capital gains
for each Fund may be made at the discretion of the Board of Trustees in order to
avoid the application of a 4% non-deductable excise tax on certain undistributed
amounts of ordinary income and capital gains.
Distributions from income and capital gains are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Funds, dividends
payable, redesignated distributions and differing characterization of
distributions made by each Fund.
84
NOTES to FINANCIAL statements (unaudited) (continued)
WM GROUP OF FUNDS
FEDERAL INCOME TAXES:
It is each Fund's policy to qualify as a regulated investment company by
complying with the requirements of the Internal Revenue Code of 1986, as
amended, applicable to regulated investment companies and by, among other
things, distributing substantially all of its earnings to its shareholders.
Therefore, no federal income or excise tax provision is required.
EXPENSES:
General expenses of the Trusts are allocated to all the Funds based upon the
relative average net assets of each Fund except printing and postage expenses,
which are allocated to all the Funds based upon the relative number of
shareholder accounts of each Fund. Operating expenses directly attributable to a
class of shares are charged to the operations of that class of shares. Expenses
of each Fund not directly attributable to the operations of any class of shares
are prorated among the classes to which the expenses relate based on the
relative average net assets of each class of shares.
3. INVESTMENT ADVISORY AND OTHER TRANSACTIONS
WM Advisors serves as investment advisor to the Trusts. The Advisor is entitled
to a monthly fee at an annual rate based upon a percentage of the average daily
net assets of each Fund at the following rates:
FROM $0 FROM $125 FROM $200 FROM $250 FROM $500 FROM $1 FROM $2
TO $125 TO $200 TO $250 TO $500 MILLION TO TO $2 TO $3 OVER
NAME OF FUND MILLION MILLION MILLION MILLION $1 BILLION BILLION BILLION $3 BILLION
------------ ------------------------------------------------------------------------------------------------
REIT Fund 0.800% 0.800% 0.800% 0.800% 0.750% 0.750% 0.700% 0.650%
Equity Income Fund 0.625% 0.625% 0.625% 0.500% 0.500% 0.500% 0.500% 0.500%
Growth & Income Fund 0.625% 0.625% 0.625% 0.500% 0.500% 0.500% 0.500% 0.500%
West Coast Equity Fund 0.625% 0.625% 0.625% 0.625% 0.500% 0.375% 0.375% 0.375%
Mid Cap Stock Fund 0.750% 0.750% 0.750% 0.750% 0.750% 0.750% 0.750% 0.700%
Growth Fund 0.800% 0.800% 0.800% 0.800% 0.750% 0.750% 0.700% 0.650%
Small Cap Stock Fund 0.850% 0.850% 0.850% 0.850% 0.850% 0.850% 0.800% 0.800%
International Growth Fund 1.000% 0.800% 0.800% 0.800% 0.800% 0.750% 0.750% 0.700%
Short Term Income Fund 0.500% 0.500% 0.450% 0.450% 0.400% 0.400% 0.400% 0.400%
U.S. Government Securities Fund 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.450%
Income Fund 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.450%
High Yield Fund 0.625% 0.625% 0.625% 0.500% 0.500% 0.500% 0.500% 0.500%
Tax-Exempt Bond Fund 0.500% 0.500% 0.500% 0.400% 0.400% 0.400% 0.400% 0.400%
California Municipal Fund 0.500% 0.500% 0.500% 0.500% 0.500% 0.450% 0.450% 0.450%
California Insured Intermediate
Municipal Fund 0.500% 0.500% 0.500% 0.500% 0.500% 0.450% 0.450% 0.450%
The Advisor has voluntarily waived $81,864 of its advisory fees for the
California Insured Intermediate Municipal Fund for the six months ended April
30, 2003.
WM Shareholder Services, Inc. (the "Transfer Agent"), a wholly owned subsidiary
of Washington Mutual, serves as the transfer agent of the Funds. Fees were paid
to the Transfer Agent for services related to the issuance and transfer of
shares, maintaining shareholder lists, and issuing and mailing distributions and
reports. The authorized annual shareholder servicing fee is $19.68, $20.21 and
$20.21 for Class A, Class B and Class C shareholder accounts for the Equity
Funds, Fixed-Income Funds and Municipal Funds, respectively. Prior to December
1, 2002, the authorized monthly shareholder servicing fee was $20.52, $22.70 and
$22.70 for Class A, Class B and Class C shareholder accounts for the Equity
Funds, Fixed-Income Funds and Municipal Funds, respectively. Class I shares are
not subject to shareholder servicing fees. The Transfer Agent has voluntarily
waived $24,831, $16,878 and $2,422 of its transfer agent fees for Class A, Class
B and Class C shares of the Short Term Income Fund, respectively.
Custodian fees for certain Funds have been reduced by credits allowed by the
Funds' custodian for uninvested cash balances. The Funds could have invested
this cash in income producing securities. Fees reduced by credits allowed by the
custodian for the six months ended April 30, 2003 are shown separately in the
Statements of Operations.
85
NOTES to FINANCIAL statements (unaudited) (continued)
WM GROUP OF FUNDS
4. TRUSTEES' FEES
No officer or employee of Washington Mutual or its subsidiaries receives any
compensation from the Trusts for serving as an officer or Trustee of the Trusts.
The Trusts, together with other mutual funds advised by WM Advisors, Inc., pay
each Trustee who is not an officer or employee of Washington Mutual or its
subsidiaries, a per annum retainer plus attendance fees for each meeting at
which they are present. The Lead Trustee, Committee Chairs and Committee Members
receive additional remuneration for these services to the Trusts. Trustees are
also reimbursed for travel and out-of-pocket expenses. Each Trustee serves in
the same capacity for all 39 funds within the WM Group of Funds.
5. DISTRIBUTION PLANS
WM Funds Distributor, Inc. (the "Distributor"), a registered broker-dealer and a
wholly-owned subsidiary of Washington Mutual, serves as distributor for Class A,
Class B and Class C shares. For the six months ended April 30, 2003, the
Distributor received $408,968 representing commissions (front-end sales charges)
on Class A and Class C shares and $1,775,667 representing CDSC fees from Class
A, Class B and Class C shares.
Each of the Funds has adopted three distribution plans, pursuant to Rule 12b-1
under the 1940 Act, applicable to Class A, Class B and Class C shares of the
Fund (each, a "Rule 12b-1 Plan"), respectively. There are no 12b-1 Plans
applicable to Class I shares of the Funds. Under the applicable Rule 12b-1
Plans, the Distributor may receive a service fee at an annual rate of 0.25% of
the average daily net assets of each class. In addition, the Distributor is paid
a fee as compensation in connection with the offering and sale of Class B and
Class C shares at an annual rate of 0.75% of the average daily net assets of
each class. These fees may be used to cover the expenses of the Distributor
primarily intended to result in the sale of such shares, including payments to
the Distributor's representatives or others for selling shares. The service fee
is paid by the Fund to the Distributor, which in turn, pays a portion of the
service fee to broker/dealers that provide services, such as accepting telephone
inquiries and transaction requests and processing correspondences, new account
applications and subsequent purchases by check for the shareholders. Under their
terms, each Rule 12b-1 plan shall remain in effect from year to year, provided
such continuance is approved annually by vote of the Board of Trustees,
including a majority of those Trustees who are not "interested persons" of the
Trusts, as defined in the 1940 Act, and who have no direct or indirect financial
interest in the operation of such distribution plans, or any agreements related
to such plans, respectively.
6. PURCHASES AND SALES OF INVESTMENTS
The aggregate cost of purchases and proceeds from sales of securities, excluding
U.S. Government and short-term investments, for the six months ended April 30,
2003, were as follows:
NAME OF FUND PURCHASES SALES
--------------------------------- ------------ -------------
REIT Fund $108,356,788 $ 4,252,408
Equity Income Fund 49,769,239 43,286,735
Growth & Income Fund 49,321,774 149,875,587
West Coast Equity Fund 52,906,219 43,260,027
Mid Cap Stock Fund 42,359,719 36,578,919
Growth Fund 255,775,165 197,876,176
Small Cap Stock Fund 78,226,802 32,873,740
International Growth Fund 32,670,229 19,481,875
Short Term Income Fund 37,182,483 22,863,936
U.S. Government Securities Fund -- 43,448
Income Fund 124,737,563 59,396,689
High Yield Fund 178,765,143 105,168,344
Tax-Exempt Bond Fund 55,420,205 47,175,787
California Municipal Fund 110,728,313 107,891,612
California Insured Intermediate Municipal Fund 74,395,469 30,828,739
The aggregate cost of purchases and proceeds from sales of U.S. Government
securities, excluding short-term investments, for the six months ended April 30,
2003, were as follows:
NAME OF FUND PURCHASES SALES
--------------------------------- ------------ -------------
Equity Income Fund $ -- $ 1,949,990
Short Term Income Fund 31,264,651 10,882,638
U.S. Government Securities Fund 352,393,565 222,727,944
Income Fund 97,784,521 53,992,964
86
NOTES to FINANCIAL statements (unaudited) (continued)
WM GROUP OF FUNDS
At April 30, 2003, aggregate gross unrealized appreciation for all securities in
which there is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost over
value were as follows:
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
NAME OF FUND APPRECIATION DEPRECIATION
---------------- -------------- --------------
REIT Fund $ 4,951,638 $ 572,121
Equity Income Fund 58,787,876 91,592,489
Growth & Income Fund 223,394,994 171,597,503
West Coast Equity Fund 164,893,702 143,158,427
Mid Cap Stock Fund 51,158,072 14,025,682
Growth Fund 27,918,902 53,194,675
Small Cap Stock Fund 28,581,998 186,707,835
International Growth Fund 13,331,273 40,827,935
Short Term Income Fund 7,631,752 753,932
U.S. Government Securities Fund 30,582,915 151,052
Income Fund 68,365,795 27,354,573
High Yield Fund 30,048,656 21,264,292
Tax-Exempt Bond Fund 25,176,140 1,005,339
California Municipal Fund 31,840,725 473,289
California Insured Intermediate Municipal Fund 7,807,440 60,523
7. LENDING OF SECURITIES
Certain Funds may lend securities to brokers, dealers and other financial
organizations to earn additional income. Each security loan is collateralized
with collateral assets in an amount equal to or greater than the current market
value of the loaned securities. There is a risk of delay in receiving
collateral, that the collateral could lose value or become valueless, or in
recovering the securities loaned or even a loss of rights in collateral should
the borrower fail financially.
At April 30, 2003, each of the Funds with outstanding loans of securities to
certain brokers, dealers or other financial institutions has segregated cash
and/or securities at least equal to the market value of securities loaned with
the Funds' custodian.
8. TRANSACTIONS WITH AFFILIATES
At April 30, 2003, the WM Strategic Asset Management Portfolios, LLC, held
investments in a number of the Funds. The figures presented below represent the
percentage of shares outstanding of each Fund owned by the Portfolios.
PORTFOLIOS
----------------------------------------------------------------------------
FLEXIBLE CONSERVATIVE CONSERVATIVE STRATEGIC
INCOME BALANCED BALANCED GROWTH GROWTH
NAME OF FUND PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------------- --------- ------------ --------- ------------ ---------
REIT Fund 4.6% 2.5% 35.5% 36.8% 19.4%
Equity Income Fund 2.6% 1.3% 20.0% 19.9% 10.9%
Growth & Income Fund 3.5% 1.2% 16.7% 18.0% 11.9%
West Coast Equity Fund 1.1% 0.7% 10.0% 10.9% 7.4%
Mid Cap Stock Fund 4.6% 1.8% 26.8% 28.4% 23.1%
Growth Fund 3.2% 1.6% 22.8% 24.4% 14.6%
Small Cap Stock Fund 4.3% 1.5% 23.9% 26.5% 17.9%
International Growth Fund -- 1.8% 31.4% 33.1% 22.5%
Short Term Income Fund 36.8% 5.8% 10.9% -- --
U.S. Government Securities Fund 14.0% 3.2% 20.5% 6.8% --
Income Fund 17.6% 4.6% 26.8% 12.5% --
High Yield Fund 9.6% 2.8% 22.6% 16.4% 8.6%
87
NOTES to FINANCIAL statements (unaudited) (continued)
WM GROUP OF FUNDS
9. INDUSTRY AND GEOGRAPHIC CONCENTRATION AND OTHER RISK FACTORS
While no individual fund is intended as a complete investment program, this is
especially true for funds that concentrate their investments such as those
investing in particular industries or regions.
The Reit Fund concentrates its investments in real estate investment trust
("REIT") securities or debt securities of issuers that are principally engaged
in the U.S. real estate or related industries. The REITFund could be adversely
impacted by economic trends within this industry.
The West Coast Equity Fund concentrates its investments in companies located or
doing business in Alaska, California, Idaho, Montana, Oregon and Washington. The
West Coast Equity Fund could be adversely impacted by economic trends within
this region.
The California Municipal and California Insured Intermediate Municipal Funds are
more susceptible to factors adversely affecting issuers of California municipal
securities than is a municipal bond fund that is not concentrated in these
issuers. Uncertain economic conditions or governmental developments may affect
the ability of California municipal securities issuers to meet their financial
obligations.
Certain Funds may invest a portion of their assets in foreign securities,
developing or emerging markets countries; enter into forward foreign currency
transactions; lend their portfolio securities; enter into stock index, interest
rate and currency futures contracts, and options on such contracts; enter into
interest rate swaps or purchase or sell interest rate caps or floors; enter into
other types of options transactions; make short sales; purchase zero coupon and
payment-in-kind bonds; enter into repurchase or reverse repurchase agreements;
purchase and sell "when-issued" securities and enter into "delayed-delivery"
transactions; and enter into various other investment practices, each with
inherent risks. The risks involved in investing in foreign securities include
those resulting from future adverse political and economic developments and the
possible imposition of currency exchange restrictions or other foreign laws or
restrictions. The risks involved in investing in a high concentration of a
single sector include those resulting from future adverse political and economic
developments or regulatory occurrences and the potential for adverse effects to
the financial conditions of the industries within the sector due to market
fluctuations.
88
This Semi-Annual Report is published for the general information of the
shareholders of the WM Group of Funds. It is authorized for distribution to
prospective investors only when preceded or accompanied by a current WM Group of
Funds prospectus. A mutual fund's share price and investment return will vary
with market conditions, and the principal value of an investment when you sell
your shares may be more or less than the original cost.
The WM Group of Funds are not insured by the FDIC. They are not deposits or
obligations of, nor are they guaranteed by, any bank. These securities are
subject to investment risk, including possible loss of principal amount
invested.
Distributed by:
WM Funds Distributor, Inc.
Member NASD
logo: WM GroupofFunds
P.O. Box 9757
Providence, RI 02940-9757
PRSRT STD
U.S. Postage
PAID
N. READING, MA
PERMIT #105
logo: Printed on recycled paper
WMGSAR (06/27/03)
Item 9. Controls and Procedures:
The registrant's principal executive officer and principal financial officer
have concluded, based on their evaluation of the effectiveness of the design and
operation of the registrant's disclosure controls and procedures as of a date
within 90 days of the filing date of this report on Form N-CSR, that the design
and operation of such procedures are effective to provide reasonable assurance
that information required to be disclosed by the registrant in the reports that
it files or submits on Form N-CSR is recorded, processed, summarized, and
reported within the time periods specified in the Commission's rules and forms.
There have been no significant changes in the registrant's internal controls or
in other factors that could significantly affect those controls subsequent to
the date of their evaluation.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
WM Trust I and Trust II
By: /s/William G. Papesh
President
June 30, 2003
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
WM Trust I and Trust II
/s/John T. West
Chief Financial Officer
June 30, 2003
/s/William G. Papesh
President
June 30, 2003