UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-5900
EXPEDITION FUNDS
(Exact name of registrant as specified in charter)
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15 South 20th Street
Birmingham, Alabama 35233
(Address of principal executive offices) (Zip code)
Expedition Funds
State Street Bank and Trust Company
225 Franklin Street
Boston Massachusetts 02110
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-992-2085
DATE OF FISCAL YEAR END: OCTOBER 31, 2003
DATE OF REPORTING PERIOD: APRIL 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
Expedition Funds GUIDING YOUR WAY 2003 Semi-Annual Report
[GRAPHIC OMITTED]
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[LOGO OMITTED]
EXPEDITION FUNDS
Table of Contents
Letter to Our Shareholders .............................. 1
Statements of Net Assets ................................ 3
Statements of Operations ................................ 40
Statements of Changes in Net Assets ..................... 43
Financial Highlights .................................... 46
Notes to Financial Statements ........................... 52
Shares of the Expedition Funds are not deposits of or obligations of, or
guaranteed or endorsed by Compass Bank, Compass Bancshares, Inc. or any of their
affiliates, or any bank, and are not obligations of, guaranteed by or insured by
the U.S. Government, the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other government agency.
An investment in shares of the Funds involves investment risk, including the
possible loss of all or a portion of the principal invested, and the investment
return and value of shares of the Funds will fluctuate so that an investment,
when liquidated, may be worth more or less than the original cost.
Money market funds are neither insured nor guaranteed by the U.S. Government and
there can be no assurance that the Expedition Money Market Fund or Tax-Free
Money Market Fund will be able to maintain a stable net asset value of $1.00 per
share.
Compass Bank serves as investment advisor and custodian to the Expedition Funds,
and Compass Bank and various of its affiliates may provide various services to
the Funds, for which investment advisory, custodian and other services Compass
Bank and/or such other affiliates are entitled to receive compensation.
LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
During the six months ended April 30, 2003, the economy and markets endured new
traumas, but emerged stronger than many expected.
During most of this period, the news was dominated by the potential -- and
actual -- conflict with Iraq. In anticipation of war, investors, consumers, and
businesses grew increasingly cautious, depressing spending and investment in
virtually all areas of the economy.
When the war actually arrived, and proved to be quicker and less costly than
many had feared, there was a perceptible sigh of relief. However, a hoped-for
surge in the financial markets failed to materialize, as investors continued to
worry about the overall strength of the domestic and global economies.
Still, investor confidence has slowly recovered since the war ended, pushing the
major averages modestly higher than they had been at the start of the six month
period.
A HEALTHY BOND MARKET.
Bonds performed relatively well during the past six months, as they generally do
during times of uncertainty.
The Federal Reserve Board sat on the sidelines throughout the period, hemmed in
by factors that appeared to reduce its ability to influence the economy. One of
these is the simple fact that interest rates are already at 40-year lows,
leaving little room for additional rate cuts. Another is an increasing concern
that falling prices in some sectors could actually tip the economy toward a
deflationary cycle.
Government issues continued to benefit from a flight to quality, although price
increases were muted by a recognition that future rate cuts were increasingly
unlikely.
Gains in corporate bonds were limited by ongoing economic concerns, as well as
downgrades for several well-known issuers.
A MODEST RECOVERY FOR STOCKS.
Stock investors remained jittery during most of the period, as they tried to
measure the long-term impact of war, ongoing terrorist threats, and global
economic weakness.
The mood brightened somewhat as the onset of war in Iraq at least brought an
element of certainty. And while plenty of uncertainty remained when the conflict
ended, many investors began moving cautiously back into stocks.
What is most striking is that the postwar recovery reached not only solid
blue-chip stocks but also many technology issues -- including those in the
once-shunned Internet sector.
APRIL 30, 2003 1
LETTER TO OUR SHAREHOLDERS (CONCLUDED)
Investors appear to be realizing that corporate earnings have in fact been
fairly strong, especially among companies that have used the recent downturn to
reduce costs and capture a larger share of their respective markets.
FINDING OPPORTUNITIES.
Throughout the past six months, the Expedition Funds family has maintained its
proven strategy of focusing on issues of exceptional quality and value, and
avoiding the herd mentality in either bullish or bearish directions.
Our experience has shown us that times are always uncertain, and that
opportunities can be more abundant during downturns than upturns.
Therefore, our funds remain fully invested and well diversified. And their
relatively steady performance helped Expedition Funds' investors maintain an
even keel during this difficult period.
A POSITIVE MOOD.
While the world's problems have not disappeared, there is a general sense that
consumers and businesses are growing more optimistic than they have been in
recent years.
This is significant, because a positive mood is a prerequisite to positive
results for the economy and the markets.
We at the Expedition Funds have never lost our steadfast faith in the future of
the American economy and its long-term resiliency. This faith is only reinforced
as we witness how strongly the people of the world -- including many in Iraq --
seek to emulate our values and traditions.
We would like to take this opportunity to salute the courageous men and women of
our armed forces who have risked -- and too often sacrificed -- their lives to
defend those values and traditions. They embody America's greatness in its
purest form.
We also thank you, our valued investors, for sharing our faith in the future. We
will do everything possible to see that your confidence is well rewarded in the
years ahead.
Sincerely,
/S/ DENISE A. WOODHAM
Denise A. Woodham
Managing Director of Investments
Compass Asset Management Group
2 APRIL 30, 2003
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- -------------------------------------------------------------------------------
COMMON STOCK - 99.3%
AEROSPACE & DEFENSE - 3.2%
Boeing 62,000 $ 1,691
Northrop Grumman 12,000 1,056
United Technologies 40,000 2,472
- -------------------------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 5,219
- -------------------------------------------------------------------------------
AIRLINES - 1.9%
Southwest Airlines 190,000 3,032
- -------------------------------------------------------------------------------
TOTAL AIRLINES 3,032
- -------------------------------------------------------------------------------
AUTOMOTIVE - 0.8%
Genuine Parts 42,000 1,343
- -------------------------------------------------------------------------------
TOTAL AUTOMOTIVE 1,343
- -------------------------------------------------------------------------------
BANKS - 5.6%
Bank of America 32,000 2,370
JPMorgan Chase 160,000 4,696
Washington Mutual 50,000 1,975
- -------------------------------------------------------------------------------
TOTAL BANKS 9,041
- -------------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING - 3.6%
Comcast, Cl A* 95,000 3,031
Omnicom Group 45,000 2,786
- -------------------------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 5,817
- -------------------------------------------------------------------------------
COMPUTERS & SERVICES - 9.1%
Cisco Systems* 245,000 3,685
Dell Computer* 110,000 3,180
Intel 210,000 3,864
International Business Machines 48,000 4,075
- -------------------------------------------------------------------------------
TOTAL COMPUTERS & SERVICES 14,804
- -------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 1.1%
Pactiv* 88,000 1,806
- -------------------------------------------------------------------------------
TOTAL CONTAINERS & PACKAGING 1,806
- -------------------------------------------------------------------------------
COSMETICS/TOILETRIES - 1.8%
Procter & Gamble 32,000 2,875
- -------------------------------------------------------------------------------
TOTAL COSMETICS/TOILETRIES 2,875
- -------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 7.6%
American Express 44,000 1,666
Citigroup 115,000 4,513
Goldman Sachs Group 22,000 1,670
Morgan Stanley 100,000 4,475
- -------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 12,324
- -------------------------------------------------------------------------------
APRIL 30, 2003 3
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- -------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING - 2.5%
General Electric 140,000 $ 4,123
- -------------------------------------------------------------------------------
TOTAL DIVERSIFIED MANUFACTURING 4,123
- -------------------------------------------------------------------------------
ELECTRICAL SERVICES - 2.9%
Exelon 90,000 4,774
- -------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 4,774
- -------------------------------------------------------------------------------
ENTERTAINMENT - 1.6%
Harrah's Entertainment* 65,000 2,560
- -------------------------------------------------------------------------------
TOTAL ENTERTAINMENT 2,560
- -------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 4.5%
Anheuser-Busch 72,000 3,591
Constellation Brands, Cl A* 50,000 1,341
Pepsi Bottling Group 120,000 2,465
- -------------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 7,397
- -------------------------------------------------------------------------------
INSURANCE - 10.9%
AFLAC 72,600 2,375
Allstate 100,000 3,779
American International Group 80,000 4,636
Lincoln National 75,000 2,397
Marsh & McLennan 95,000 4,529
- -------------------------------------------------------------------------------
TOTAL INSURANCE 17,716
- -------------------------------------------------------------------------------
MACHINERY - 1.3%
Caterpillar 40,000 2,104
- -------------------------------------------------------------------------------
TOTAL MACHINERY 2,104
- -------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES - 8.1%
Amgen* 52,000 3,188
Cardinal Health 40,000 2,211
Lincare Holdings* 78,000 2,369
St. Jude Medical* 55,000 2,885
UnitedHealth Group 28,000 2,580
- -------------------------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 13,233
- -------------------------------------------------------------------------------
METALS-ALUMINUM - 1.6%
Alcoa 110,000 2,522
- -------------------------------------------------------------------------------
TOTAL METALS-ALUMINUM 2,522
- -------------------------------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES - 2.4%
First Data 40,000 1,569
Oracle* 200,000 2,376
- -------------------------------------------------------------------------------
TOTAL MISCELLANEOUS BUSINESS SERVICES 3,945
- -------------------------------------------------------------------------------
MULTIMEDIA - 2.9%
Gannett 42,000 3,180
McGraw-Hill 25,000 1,460
- -------------------------------------------------------------------------------
TOTAL MULTIMEDIA 4,640
- -------------------------------------------------------------------------------
4 APRIL 30, 2003
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
SHARES/FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS - 1.5%
International Paper 70,000 $ 2,503
- -------------------------------------------------------------------------------
TOTAL PAPER & PAPER PRODUCTS 2,503
- -------------------------------------------------------------------------------
PETROLEUM REFINING - 5.4%
ChevronTexaco 30,000 1,884
Exxon Mobil 120,000 4,224
Schlumberger Ltd. 65,000 2,726
- -------------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 8,834
- -------------------------------------------------------------------------------
PHARMACEUTICALS - 4.0%
Merck 48,000 2,793
Pfizer 120,000 3,690
- -------------------------------------------------------------------------------
TOTAL PHARMACEUTICALS 6,483
- -------------------------------------------------------------------------------
RETAIL - 4.2%
Best Buy* 110,000 3,804
Staples* 160,000 3,046
- -------------------------------------------------------------------------------
TOTAL RETAIL 6,850
- -------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS - 1.8%
Applied Materials* 200,000 2,920
- -------------------------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 2,920
- -------------------------------------------------------------------------------
SOFTWARE & PROGRAMMING - 4.3%
Microsoft 150,000 3,836
Veritas Software* 140,000 3,081
- -------------------------------------------------------------------------------
TOTAL SOFTWARE & PROGRAMMING 6,917
- -------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 4.7%
Nokia Oyj ADR 110,000 1,823
SBC Communications 250,000 5,840
- -------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 7,663
- -------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $174,699) 161,445
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.9%
Morgan Stanley
1.00% dated 04/30/03, matures
05/01/03, repurchase price $1,457,040
(collateralized by U.S. Treasury obligations,
total market value $1,486,181) (A) $1,457 1,457
- -------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $1,457) 1,457
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.2%
(COST $176,156) $162,902
- -------------------------------------------------------------------------------
APRIL 30, 2003 5
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - (0.2)%
Investment Advisory Fees Payable $ (97)
Administrator Fees Payable (26)
Custodian Fees Payable (3)
Distribution Fees Payable (12)
Other Assets and Liabilities, Net (201)
- -------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES (339)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 22,076,485 outstanding shares of
beneficial interest 225,024
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 1,186,286 outstanding shares of
beneficial interest 14,551
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 2,145,396 outstanding shares of
beneficial interest 27,209
Undistributed net investment income 120
Accumulated net realized loss on investments (91,087)
Net unrealized depreciation on investments (13,254)
- -------------------------------------------------------------------------------
TOTAL NET ASSETS-- 100.0% $162,563
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES $6.43
- -------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A $6.37
- -------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $6.64
- -------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2) $6.14
- -------------------------------------------------------------------------------
* Non-income producing security.
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%.
(2) Class B Shares have a contingent deferred sales charge. For a description
of a possible redemption charge, see a prospectus for the Funds.
(A) Tri-Party Repurchase Agreement
ADR -- American Depository Receipt
Cl -- Class
Ltd. -- Limited
The accompanying notes are an integral part of the financial statements.
6 APRIL 30, 2003
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- -------------------------------------------------------------------------------
COMMON STOCK - 98.2%
AEROSPACE & DEFENSE - 2.1%
General Dynamics 2,000 $ 124
Raytheon 5,000 150
- -------------------------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 274
- -------------------------------------------------------------------------------
AIR TRANSPORTATION - 1.1%
FedEx 2,500 150
- -------------------------------------------------------------------------------
TOTAL AIR TRANSPORTATION 150
- -------------------------------------------------------------------------------
BANKS - 16.7%
Bank of America 4,000 296
Bank of New York 10,000 264
BB&T 11,000 359
JPMorgan Chase 2,000 59
Keycorp 10,000 241
Union Planters 9,000 257
Wachovia 5,000 191
Washington Mutual 7,000 277
Wells Fargo 5,000 241
- -------------------------------------------------------------------------------
TOTAL BANKS 2,185
- -------------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING - 1.5%
Comcast, Cl A* 6,000 191
- -------------------------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 191
- -------------------------------------------------------------------------------
CHEMICALS - 2.3%
EI Du Pont de Nemours 7,000 298
- -------------------------------------------------------------------------------
TOTAL CHEMICALS 298
- -------------------------------------------------------------------------------
COMPUTERS & SERVICES - 1.8%
Sun Microsystems* 70,000 231
- -------------------------------------------------------------------------------
TOTAL COMPUTERS & SERVICES 231
- -------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 2.0%
Pactiv* 13,000 267
- -------------------------------------------------------------------------------
TOTAL CONTAINERS & PACKAGING 267
- -------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 15.7%
Citigroup 14,000 550
Concord* 19,765 273
Goldman Sachs Group 4,350 330
Merrill Lynch 8,000 328
Morgan Stanley 7,500 336
Viad 12,105 243
- -------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 2,060
- -------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING - 3.0%
Fortune Brands 5,000 242
General Electric 5,000 147
- -------------------------------------------------------------------------------
TOTAL DIVERSIFIED MANUFACTURING 389
- -------------------------------------------------------------------------------
APRIL 30, 2003 7
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- -------------------------------------------------------------------------------
ELECTRICAL SERVICES - 9.2%
Calpine* 60,000 $ 322
Centerpoint Energy 20,000 158
Exelon 4,000 212
Mirant* 120,000 397
Southern 4,000 117
- -------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 1,206
- -------------------------------------------------------------------------------
ENTERTAINMENT - 0.3%
Harrah's Entertainment* 1,000 39
- -------------------------------------------------------------------------------
TOTAL ENTERTAINMENT 39
- -------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 1.8%
Adolph Coors, Cl B 4,500 241
- -------------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 241
- -------------------------------------------------------------------------------
INSURANCE - 2.9%
ACE Ltd. 8,000 265
American International Group 2,000 116
- -------------------------------------------------------------------------------
TOTAL INSURANCE 381
- -------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES - 4.7%
Invitrogen* 8,000 262
Quest Diagnostics* 6,000 358
- -------------------------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 620
- -------------------------------------------------------------------------------
OIL FIELD SERVICES - 1.7%
Anadarko Petroleum 5,000 222
- -------------------------------------------------------------------------------
TOTAL OIL FIELD SERVICES 222
- -------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS - 1.1%
International Paper 4,000 143
- -------------------------------------------------------------------------------
TOTAL PAPER & PAPER PRODUCTS 143
- -------------------------------------------------------------------------------
PETROLEUM REFINING - 10.1%
ChevronTexaco 4,000 251
Exxon Mobil 13,000 458
Noble* 7,500 232
Royal Dutch Petroleum 3,000 123
Viacom, Cl B* 6,000 260
- -------------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 1,324
- -------------------------------------------------------------------------------
8 APRIL 30, 2003
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
SHARES/FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 2.2%
Crescent Real Estate Equity 20,000 $ 284
- -------------------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUSTS 284
- -------------------------------------------------------------------------------
RETAIL - 7.3%
CVS 10,000 242
Outback Steakhouse 6,000 215
Wal-Mart Stores 2,000 113
Wendy's International 8,000 232
Yum! Brands* 6,000 148
- -------------------------------------------------------------------------------
TOTAL RETAIL 950
- -------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS - 1.0%
Applied Materials* 5,000 73
Novellus Systems* 2,000 56
- -------------------------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 129
- -------------------------------------------------------------------------------
SOFTWARE & PROGRAMMING - 2.9%
Intuit* 6,000 233
Microsoft 6,000 153
- -------------------------------------------------------------------------------
TOTAL SOFTWARE & PROGRAMMING 386
- -------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 6.8%
Alltel 1,000 47
BellSouth 5,000 127
Nokia Oyj ADR 15,000 249
SBC Communications 15,000 350
Verizon Communications 3,000 112
- -------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 885
- -------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $12,804) 12,855
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.7%
Morgan Stanley
1.00% dated 04/30/03, matures
05/01/03, repurchase price $89,002
(collateralized by U.S. Treasury obligations,
total market value $90,783) (A) $89 89
- -------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $89) 89
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 98.9%
(COST $12,893) 12,944
- -------------------------------------------------------------------------------
APRIL 30, 2003 9
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 1.1%
Receivable due from Investment Advisor $ 2
Administrator Fees Payable (6)
Distribution Fees Payable (1)
Other Assets and Liabilities, Net 146
- -------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES 141
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 2,074,178 outstanding shares of
beneficial interest 20,719
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 48,912 outstanding shares of
beneficial interest 554
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 116,671 outstanding shares of
beneficial interest 1,212
Undistributed net investment income 14
Accumulated net realized loss on investments (9,465)
Net unrealized appreciation on investments 51
- -------------------------------------------------------------------------------
TOTAL NET ASSETS-- 100.0% $13,085
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES $5.85
- -------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A $5.84
- -------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $6.08
- -------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2) $5.79
- -------------------------------------------------------------------------------
* Non-income producing security.
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%.
(2) Class B Shares have a contingent deferred sales charge. For a description
of a possible redemption charge, see a prospectus for the Funds.
(A) Tri-Party Repurchase Agreement
ADR -- American Depository Receipt
Cl -- Class
Ltd. -- Limited
The accompanying notes are an integral part of the financial statements.
10 APRIL 30, 2003
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 24.6%
U.S. Treasury Notes
7.000%, 07/15/06 $2,500 $ 2,879
6.875%, 05/15/06 1,000 1,143
6.500%, 10/15/06 3,000 3,427
6.500%, 02/15/10 1,000 1,191
6.125%, 08/15/07 3,000 3,432
6.000%, 08/15/09 3,000 3,474
5.750%, 11/15/05 1,000 1,099
5.750%, 08/15/10 2,000 2,293
5.625%, 05/15/08 2,000 2,259
5.500%, 05/15/09 3,000 3,392
5.000%, 02/15/11 1,500 1,646
4.000%, 11/15/12 1,000 1,013
3.875%, 02/15/13 1,000 1,002
3.000%, 11/15/07 1,000 1,014
3.000%, 02/15/08 1,000 1,011
- -------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $26,818) 30,275
- -------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 18.8%
FHLB, Ser 100
5.800%, 09/02/08 2,000 2,267
FHLMC
7.000%, 03/15/10 3,000 3,620
6.625%, 09/15/09 3,000 3,536
FNMA
7.250%, 01/15/10 2,500 3,036
5.500%, 03/15/11 3,000 3,324
5.250%, 01/15/09 3,000 3,304
4.375%, 03/15/13 4,000 4,048
- -------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $20,643) 23,135
- -------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS - 11.0%
FHLMC, Gold Pool #E00532
6.500%, 02/01/13 383 405
FHLMC, Gold Pool #E00543
6.000%, 04/01/13 812 851
FHLMC, Gold Pool #E00584
6.000%, 11/01/13 1,175 1,231
FHLMC, Gold Pool #E00832
7.500%, 04/01/15 512 549
FHLMC, Gold Pool #E00856
7.500%, 06/01/15 509 546
APRIL 30, 2003 11
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
FNMA, Pool #535966
7.000%, 05/01/16 $1,072 $ 1,145
FNMA, Pool # 614934
6.000%, 12/01/16 3,451 3,620
GNMA, Pool #552999
5.000%, 01/15/18 4,927 5,125
- -------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(COST $13,054) 13,472
- -------------------------------------------------------------------------------
CORPORATE BONDS - 38.4%
BANKS - 5.4%
Bank of America
5.875%, 02/15/09 1,000 1,117
Bank One
6.000%, 08/01/08 2,000 2,243
Wachovia
4.950%, 11/01/06 2,000 2,153
Wells Fargo, Ser G, MTN
6.875%, 08/08/06 1,000 1,133
- -------------------------------------------------------------------------------
TOTAL BANKS 6,646
- -------------------------------------------------------------------------------
BROKER/DEALERS - 4.6%
Goldman Sachs Group
6.600%, 01/15/12 2,000 2,259
Merrill Lynch
6.375%, 10/15/08 1,000 1,122
Morgan Stanley
6.750%, 04/15/11 2,000 2,276
- -------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 5,657
- -------------------------------------------------------------------------------
CHEMICALS - 1.9%
EI Dupont de Nemours
6.875%, 10/15/09 2,000 2,367
- -------------------------------------------------------------------------------
TOTAL CHEMICALS 2,367
- -------------------------------------------------------------------------------
COMPUTERS & SERVICES - 1.8%
Hewlett-Packard
7.150%, 06/15/05 2,000 2,203
- -------------------------------------------------------------------------------
TOTAL COMPUTERS & SERVICES 2,203
- -------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 11.7%
Citigroup
5.750%, 05/10/06 1,000 1,095
General Electric Capital, Ser A, MTN
7.375%, 01/19/10 3,000 3,547
6.800%, 11/01/05 2,000 2,223
General Motors Acceptance
6.750%, 01/15/06 2,000 2,110
6.150%, 04/05/07 2,000 2,075
12 APRIL 30, 2003
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
Household Finance
6.375%, 10/15/11 $1,000 $ 1,097
Wells Fargo Financial
5.875%, 08/15/08 2,000 2,247
- -------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 14,394
- -------------------------------------------------------------------------------
ELECTRICAL SERVICES - 1.8%
Alabama Power, Ser G
5.375%, 10/01/08 2,000 2,177
- -------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 2,177
- -------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 0.1%
General Mills, MTN
8.080%, 11/18/03 60 62
- -------------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 62
- -------------------------------------------------------------------------------
MULTIMEDIA - 1.8%
Walt Disney, Ser B
6.750%, 03/30/06 2,000 2,195
- -------------------------------------------------------------------------------
TOTAL MULTIMEDIA 2,195
- -------------------------------------------------------------------------------
RETAIL - 6.7%
Lowe's
8.250%, 06/01/10 2,000 2,477
Target
5.875%, 11/01/08 2,000 2,257
Wal-Mart Stores
6.875%, 08/10/09 3,000 3,559
- -------------------------------------------------------------------------------
TOTAL RETAIL 8,293
- -------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 2.6%
SBC Communications
5.875%, 02/01/12 1,000 1,099
Verizon Wireless
5.375%, 12/15/06 2,000 2,157
- -------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 3,256
- -------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(COST $41,871) 47,250
- -------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 4.4%
MBNA Master Credit Card Trust, Ser 1999-J, Cl A
7.000%, 02/15/12 3,000 3,476
Standard Credit Card Master Trust, Ser 1994-2, Cl A
7.250%, 04/07/06 1,725 1,954
- -------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $4,870) 5,430
- -------------------------------------------------------------------------------
APRIL 30, 2003 13
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 1.8%
Morgan Stanley
1.00% dated 04/30/03, matures
05/01/03, repurchase price $2,189,061
(collateralized by U.S. Treasury obligations,
total market value $2,232,842) (A) $2,189 $ 2,189
- -------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $2,189) 2,189
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.0%
(COST $109,445) 121,751
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 1.0%
Investment Advisory Fees Payable (43)
Administrator Fees Payable (20)
Custodian Fees Payable (2)
Distribution Fees Payable (3)
Other Assets and Liabilities, Net 1,316
- -------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES 1,248
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 10,520,794 outstanding shares of
beneficial interest 100,997
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 502,567 outstanding shares of
beneficial interest 9,247
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 205,808 outstanding shares of
beneficial interest 2,138
Distributions in excess of net investment income (27)
Accumulated net realized loss on investments (1,662)
Net unrealized appreciation on investments 12,306
- -------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $122,999
- -------------------------------------------------------------------------------
14 APRIL 30, 2003
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
DESCRIPTION VALUE
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES $10.95
- -------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A $10.94
- -------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $11.40
- -------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2) $10.97
- -------------------------------------------------------------------------------
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%.
(2) Class B Shares have a contingent deferred sales charge. For a description
of a possible redemption charge, see a prospectus for the Funds.
(A) Tri-Party Repurchase Agreement
Cl -- Class
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GNMA -- Government National Mortgage Association
MTN -- Medium Term Note
Ser -- Series
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2003 15
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
MUNICIPAL BONDS - 91.7%
ALABAMA - 8.9%
Alabama State, Public School & College Authority,
Capital Improvements RB, Ser D
5.750%, 08/01/19 $1,150 $ 1,305
Birmingham, Capital Improvement Warrants GO, Ser A
5.550%, 08/01/21 1,000 1,099
Huntsville, Warrants GO, Ser D
5.000%, 11/01/07 1,000 1,116
Montgomery, Warrants GO, Ser A
5.100%, 10/01/09 1,000 1,105
Phoenix City, School Warrants GO, AMBAC
5.650%, 08/01/21 1,000 1,105
Tuscaloosa, Warrants
5.650%, 01/01/17 1,000 1,126
- -------------------------------------------------------------------------------
TOTAL ALABAMA 6,856
- -------------------------------------------------------------------------------
ARIZONA - 3.1%
Arizona State, Transportation Board Highway Authority RB
5.375%, 07/01/13 1,000 1,128
Tucson GO, Ser 1994-D
6.250%, 07/01/14 1,000 1,234
- -------------------------------------------------------------------------------
TOTAL ARIZONA 2,362
- -------------------------------------------------------------------------------
CALIFORNIA - 9.9%
California State GO, FGIC
5.250%, 09/01/30 1,280 1,321
Los Angeles School District GO, Ser 1997-E, MBIA
5.125%, 01/01/27 1,000 1,044
San Diego School District GO, Ser 1998-D, FGIC
5.250%, 07/01/24 1,500 1,594
San Gabriel School District GO, Ser A, FSA
5.375%, 08/01/21 500 544
Southern California, Metropolitan Water District RB,
Ser A
5.100%, 07/01/25 1,000 1,041
University of California, Multiple Purpose Projects
RB, Ser M, FGIC
5.125%, 09/01/22 1,000 1,055
5.125%, 09/01/23 1,000 1,046
- -------------------------------------------------------------------------------
TOTAL CALIFORNIA 7,645
- -------------------------------------------------------------------------------
COLORADO - 4.2%
Denver, City and County GO, Ser B
5.625%, 08/01/07 1,000 1,136
Denver, City and County School District GO, FGIC
5.000%, 12/01/23 1,000 1,036
La Plata County School District GO, MBIA
5.250%, 11/01/25 1,000 1,053
- -------------------------------------------------------------------------------
TOTAL COLORADO 3,225
- -------------------------------------------------------------------------------
16 APRIL 30, 2003
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
FLORIDA - 3.6%
Florida State, Board of Education Capital Outlay GO,
Ser A, Pre-Refunded @ 101 (A)
5.650%, 01/01/05 $ 500 $ 540
Florida State, Department of Transportation GO,
Right of Way Project, Ser B
5.500%, 07/01/11 1,000 1,106
Palm Beach County GO, Ser A
5.450%, 08/01/13 1,000 1,105
- -------------------------------------------------------------------------------
TOTAL FLORIDA 2,751
- -------------------------------------------------------------------------------
GEORGIA - 3.6%
Fulton County, Development Authority RB,
Georgia Tech Foundation Funding, Ser A
5.000%, 11/01/21 500 523
Fulton County, School District GO
5.000%, 01/01/06 1,000 1,084
Georgia State GO, Ser B
6.000%, 03/01/12 1,000 1,194
- -------------------------------------------------------------------------------
TOTAL GEORGIA 2,801
- -------------------------------------------------------------------------------
HAWAII - 1.5%
Hawaii State GO, Ser CO, FGIC
6.000%, 03/01/08 1,000 1,158
- -------------------------------------------------------------------------------
TOTAL HAWAII 1,158
- -------------------------------------------------------------------------------
ILLINOIS - 3.1%
Chicago, Project & Refunding GO, Ser C, FGIC
5.500%, 01/01/19 2,180 2,384
- -------------------------------------------------------------------------------
TOTAL ILLINOIS 2,384
- -------------------------------------------------------------------------------
KANSAS - 1.4%
Kansas State, Department of Transportation RB, Ser A
5.000%, 09/01/06 1,000 1,104
- -------------------------------------------------------------------------------
TOTAL KANSAS 1,104
- -------------------------------------------------------------------------------
MASSACHUSETTS - 4.5%
Massachusetts State, Consolidated Loan GO,
Ser A, Pre-Refunded @ 101 (A)
6.000%, 02/01/10 2,000 2,378
Massachusetts State, Consolidated Loan GO, Ser C
5.250%, 08/01/18 1,000 1,124
- -------------------------------------------------------------------------------
TOTAL MASSACHUSETTS 3,502
- -------------------------------------------------------------------------------
MICHIGAN - 1.9%
Novi Michigan Street GO, FSA
5.250%, 10/01/15 1,280 1,426
- -------------------------------------------------------------------------------
TOTAL MICHIGAN 1,426
- -------------------------------------------------------------------------------
APRIL 30, 2003 17
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
MINNESOTA - 0.7%
Minnesota State, Public Facilities Authority
RB, Water Pollution Control, Ser A
6.000%, 03/01/09 $ 500 $ 537
- -------------------------------------------------------------------------------
TOTAL MINNESOTA 537
- -------------------------------------------------------------------------------
NEVADA - 1.5%
Clark County GO
6.000%, 07/01/06 1,000 1,126
- -------------------------------------------------------------------------------
TOTAL NEVADA 1,126
- -------------------------------------------------------------------------------
NEW JERSEY - 1.5%
New Jersey State GO, Ser F
5.500%, 08/01/11 1,000 1,151
- -------------------------------------------------------------------------------
TOTAL NEW JERSEY 1,151
- -------------------------------------------------------------------------------
NEW MEXICO - 0.7%
New Mexico State, Severance Tax RB, Ser B, FSA
5.000%, 07/01/07 500 555
- -------------------------------------------------------------------------------
TOTAL NEW MEXICO 555
- -------------------------------------------------------------------------------
NEW YORK - 9.3%
Brookhaven GO, FGIC
5.500%, 10/01/13 500 553
New York City GO, Ser C, MBIA
5.375%, 11/15/17 1,000 1,085
New York City Transitional Authority RB, Ser C, FGIC
5.250%, 08/01/14 1,000 1,119
New York State GO, Ser A, Pre-Refunded @ 101 (A)
5.875%, 03/15/05 1,000 1,095
New York State GO, Ser F
5.250%, 09/15/13 500 551
New York State, Environmental Water Facilities RB,
Pooled Financing Program, Ser F
5.250%, 11/15/20 500 541
Triborough, Bridge & Tunnel Authority RB,
Ser A, Pre-Refunded @ 100.5 (A)
5.250%, 01/01/09 1,000 1,150
Triborough, Bridge & Tunnel Authority RB, Ser B
5.250%, 11/15/16 1,000 1,104
- -------------------------------------------------------------------------------
TOTAL NEW YORK 7,198
- -------------------------------------------------------------------------------
NORTH CAROLINA - 4.9%
Charlotte, Water & Sewer Systems RB
5.125%, 06/01/26 1,000 1,046
North Carolina State GO, Ser A
4.700%, 02/01/10 1,000 1,041
Winston-Salem, Water & Sewer Systems
RB, Pre-Refunded @ 101 (A)
5.250%, 06/01/11 1,500 1,716
- -------------------------------------------------------------------------------
TOTAL NORTH CAROLINA 3,803
- -------------------------------------------------------------------------------
18 APRIL 30, 2003
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
OHIO - 2.2%
Ohio State, Building Authority RB, State Facilities,
Adult Correctional Facilities, Ser A, FSA
5.500%, 10/01/13 $1,000 $ 1,134
Pickerton Local School District GO, FGIC
5.250%, 12/01/20 500 535
- -------------------------------------------------------------------------------
TOTAL OHIO 1,669
- -------------------------------------------------------------------------------
OREGON - 1.4%
Oregon State, Alternative Energy Project GO, Ser E
5.800%, 07/01/07 1,000 1,046
- -------------------------------------------------------------------------------
TOTAL OREGON 1,046
- -------------------------------------------------------------------------------
PENNSYLVANIA - 1.4%
Pennsylvania State, Intergovernmental Authority ST,
Philadelphia Funding Project, FGIC
5.250%, 06/15/15 1,000 1,086
- -------------------------------------------------------------------------------
TOTAL PENNSYLVANIA 1,086
- -------------------------------------------------------------------------------
SOUTH CAROLINA - 4.5%
Greenville County, School District Authority RB
6.000%, 12/01/21 1,000 1,116
Lancaster County, School District GO, FSA
5.100%, 03/01/15 1,000 1,081
Lexington County, School District GO
5.125%, 03/01/21 1,210 1,303
- -------------------------------------------------------------------------------
TOTAL SOUTH CAROLINA 3,500
- -------------------------------------------------------------------------------
TEXAS - 7.9%
Austin, Water and Wastewater Authority RB, MBIA
5.000%, 11/15/28 1,000 1,020
Canyon, Independent School District GO, Ser A, PSF
5.375%, 02/15/24 1,000 1,064
Lamar, Consolidated Independent School District
GO, PSF
5.500%, 02/15/15 500 553
Leander, Independent School District GO, PSF
5.375%, 08/15/19 1,000 1,073
Mesquite, Independent School District GO, PSF
5.500%, 08/15/21 1,160 1,264
Williamson County GO, FSA
5.250%, 02/15/27 1,040 1,080
- -------------------------------------------------------------------------------
TOTAL TEXAS 6,054
- -------------------------------------------------------------------------------
UTAH - 1.5%
Utah State, Intermountain Power Agency RB,
Ser B, MBIA, ETM
6.000%, 07/01/06 1,000 1,134
- -------------------------------------------------------------------------------
TOTAL UTAH 1,134
- -------------------------------------------------------------------------------
APRIL 30, 2003 19
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE AMT. VALUE
DESCRIPTION (000)/SHARES (000)
- -------------------------------------------------------------------------------
VIRGINIA - 2.6%
Newport News GO, Ser A, MBIA,
Pre-Refunded @ 102 (A)
5.625%, 07/01/05 $ 795 $ 882
Virginia State, Commonwealth
Transportation Board RB,
Northern Virginia Transportation
Program, Ser A
5.500%, 05/15/15 1,000 1,123
- -------------------------------------------------------------------------------
TOTAL VIRGINIA 2,005
- -------------------------------------------------------------------------------
WASHINGTON - 2.9%
Washington State GO, Ser B
6.000%, 01/01/13 1,000 1,155
Washington State Various Purpose GO,
Ser A
5.625%, 07/01/22 1,000 1,091
- -------------------------------------------------------------------------------
TOTAL WASHINGTON 2,246
- -------------------------------------------------------------------------------
WEST VIRGINIA - 1.5%
West Virginia State GO, State Road Project,
FGIC
5.625%, 06/01/18 1,000 1,124
- -------------------------------------------------------------------------------
TOTAL WEST VIRGINIA 1,124
- -------------------------------------------------------------------------------
WISCONSIN - 1.5%
Milwaukee GO, Ser T, Pre-Refunded @ 100 (A)
5.250%, 09/01/11 1,000 1,140
- -------------------------------------------------------------------------------
TOTAL WISCONSIN 1,140
- -------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $65,813) 70,588
- -------------------------------------------------------------------------------
MONEY MARKET FUND - 7.5%
Expedition Tax-Free Money Market Fund+ 5,812,855 5,813
- -------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(COST $5,813) 5,813
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.2%
(COST $71,626) 76,401
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 0.8%
Investment Advisory Fees Payable (25)
Administrator Fees Payable (13)
Custodian Fees Payable (1)
Other Assets and Liabilities, Net 638
- -------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES 599
- -------------------------------------------------------------------------------
20 APRIL 30, 2003
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 6,938,092 outstanding shares of
beneficial interest $70,523
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 31,512 outstanding shares of
beneficial interest 298
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 23,589 outstanding shares of
beneficial interest 252
Undistributed net investment income 16
Accumulated net realized gain on investments 1,136
Net unrealized appreciation on investments 4,775
- -------------------------------------------------------------------------------
TOTAL NET ASSETS-- 100.0% $77,000
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES $11.01
- -------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A $11.01
- -------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $11.47
- -------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2) $11.01
- -------------------------------------------------------------------------------
+ See note 7 in Notes to Financial Statements.
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%.
(2) Class B Shares have a contingent deferred sales charge. For a description
of a possible redemption charge, see a prospectus for the Funds.
(A) Pre-Refunded Security -- The maturity date shown is the pre-refunded date.
AMBAC -- American Municipal Bond Assurance Company
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PSF -- Permanent School Fund Guarantee Program
RB -- Revenue Bond
Ser -- Series
ST -- Special Tax
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2003 21
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
COMMERCIAL PAPER - 77.8%
AIRCRAFT - 4.1%
General Dynamics
1.250%, 05/02/03 $ 5,000 $ 5,000
1.230%, 05/08/03 10,000 9,998
1.230%, 05/16/03 5,000 4,997
1.230%, 06/25/03 6,415 6,403
- -------------------------------------------------------------------------------
TOTAL AIRCRAFT 26,398
- -------------------------------------------------------------------------------
BANKS - 6.8%
Bank of America
1.250%, 05/19/03 10,000 9,994
1.250%, 05/23/03 10,000 9,992
Wells Fargo
1.240%, 05/09/03 5,000 4,999
1.250%, 05/16/03 5,000 4,997
1.240%, 05/23/03 4,000 3,997
1.200%, 06/05/03 5,000 4,994
1.230%, 06/06/03 5,000 4,994
- -------------------------------------------------------------------------------
TOTAL BANKS 43,967
- -------------------------------------------------------------------------------
BROKER/DEALERS - 7.2%
Bear Stearns
1.240%, 05/16/03 4,000 3,998
Goldman Sachs
1.180%, 05/08/03 5,000 4,999
1.260%, 05/12/03 5,000 4,998
1.250%, 05/20/03 5,000 4,997
1.250%, 05/22/03 2,500 2,498
1.220%, 05/23/03 5,000 4,996
Merrill Lynch
1.340%, 05/01/03 5,000 5,000
1.230%, 05/01/03 5,000 5,000
1.230%, 05/07/03 5,000 4,999
1.230%, 05/09/03 5,000 4,999
- -------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 46,484
- -------------------------------------------------------------------------------
BUILDING & CONSTRUCTION - 2.0%
Guardian
1.250%, 07/23/03 13,000 12,963
- -------------------------------------------------------------------------------
TOTAL BUILDING & CONSTRUCTION 12,963
- -------------------------------------------------------------------------------
22 APRIL 30, 2003
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
CONSUMER PRODUCTS - 4.2%
Clorox
1.200%, 05/14/03 $ 6,500 $ 6,497
Emerson Electric
1.200%, 05/05/03 4,200 4,199
1.220%, 05/06/03 6,695 6,694
Gillette
1.310%, 05/01/03 10,000 10,000
- -------------------------------------------------------------------------------
TOTAL CONSUMER PRODUCTS 27,390
- -------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 13.9%
American General Finance
1.230%, 05/01/03 10,000 10,000
1.230%, 05/02/03 5,000 5,000
1.230%, 05/14/03 6,000 5,997
1.230%, 05/22/03 5,000 4,996
Caterpillar Financial Services
1.220%, 05/12/03 6,000 5,998
1.200%, 05/12/03 2,355 2,354
1.210%, 06/03/03 5,000 4,994
General Electric Capital
1.240%, 05/07/03 5,000 4,999
1.240%, 05/08/03 5,000 4,999
1.230%, 05/15/03 5,000 4,998
1.240%, 05/19/03 3,500 3,498
1.250%, 05/21/03 8,000 7,994
Toyota Motor Credit
1.220%, 05/21/03 4,000 3,997
1.220%, 06/18/03 5,000 4,992
1.220%, 06/19/03 5,000 4,992
Transamerica Finance
1.250%, 05/06/03 5,000 4,999
1.240%, 05/09/03 5,000 4,999
- -------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 89,806
- -------------------------------------------------------------------------------
ELECTRICAL SERVICES - 2.7%
Southern Company Funding
1.250%, 05/05/03 5,000 4,999
1.250%, 05/12/03 5,000 4,998
1.230%, 06/10/03 4,000 3,995
1.250%, 07/10/03 3,300 3,292
- -------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 17,284
- -------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING - 4.3%
1.230%, 05/13/03 5,000 4,998
1.240%, 05/16/03 6,000 5,997
1.250%, 06/27/03 11,000 10,978
1.250%, 06/30/03 6,000 5,988
- -------------------------------------------------------------------------------
TOTAL DIVERSIFIED MANUFACTURING 27,961
- -------------------------------------------------------------------------------
APRIL 30, 2003 23
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
FUNDING CORPORATIONS - 16.0%
Falcon Asset Securitization
1.240%, 05/07/03 $ 5,000 $ 4,999
1.250%, 05/13/03 6,000 5,998
1.260%, 05/15/03 5,000 4,998
1.250%, 05/21/03 5,000 4,997
1.250%, 05/22/03 5,000 4,996
Preferred Receivable Funding
1.240%, 05/02/03 5,000 5,000
1.250%, 05/07/03 3,000 2,999
1.240%, 05/09/03 5,000 4,999
1.240%, 05/12/03 5,000 4,998
1.260%, 05/23/03 3,000 2,998
1.250%, 06/02/03 5,000 4,994
Quincy Capital
1.240%, 05/09/03 3,000 2,999
1.230%, 05/13/03 4,000 3,998
1.230%, 05/14/03 5,000 4,998
1.250%, 05/20/03 7,000 6,995
1.280%, 05/27/03 1,120 1,119
1.250%, 05/30/03 5,000 4,995
Receivables Capital
1.250%, 05/05/03 3,785 3,784
1.250%, 05/14/03 5,000 4,998
1.250%, 05/19/03 5,000 4,997
1.240%, 05/20/03 3,000 2,998
1.230%, 05/28/03 5,000 4,995
1.260%, 06/20/03 5,000 4,991
- -------------------------------------------------------------------------------
TOTAL FUNDING CORPORATIONS 103,843
- -------------------------------------------------------------------------------
PHARMACEUTICALS - 3.7%
Abbott Laboratories
1.210%, 05/20/03 7,500 7,495
Pfizer
1.200%, 05/07/03 5,000 4,999
1.200%, 05/13/03 5,000 4,998
1.220%, 05/27/03 5,000 4,995
1.230%, 05/29/03 1,450 1,449
- -------------------------------------------------------------------------------
TOTAL PHARMACEUTICALS 23,936
- -------------------------------------------------------------------------------
SPECIAL PURPOSE ENTITY - 4.1%
Three Pillars
1.260%, 05/01/03 5,000 5,000
1.250%, 05/07/03 5,000 4,999
1.260%, 05/19/03 5,000 4,997
1.260%, 05/22/03 4,000 3,997
1.260%, 05/27/03 2,500 2,498
1.260%, 07/17/03 5,000 4,986
- -------------------------------------------------------------------------------
TOTAL SPECIAL PURPOSE ENTITY 26,477
- -------------------------------------------------------------------------------
24 APRIL 30, 2003
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 7.1%
BellSouth
1.210%, 05/02/03 $ 5,000 $ 5,000
1.230%, 05/15/03 5,000 4,997
1.230%, 05/23/03 5,000 4,996
1.230%, 05/29/03 5,000 4,995
Verizon
1.250%, 05/05/03 6,750 6,749
1.260%, 05/06/03 5,000 4,999
1.250%, 05/06/03 1,600 1,600
1.230%, 06/24/03 5,000 4,991
1.230%, 07/01/03 4,000 3,992
1.220%, 07/21/03 4,000 3,989
- -------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 46,308
- -------------------------------------------------------------------------------
UTILITIES - 1.7%
National Rural Utilities
1.240%, 05/06/03 5,000 4,999
1.260%, 05/22/03 6,000 5,996
- -------------------------------------------------------------------------------
TOTAL UTILITIES 10,995
- -------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(COST $503,812) 503,812
- -------------------------------------------------------------------------------
CORPORATE BONDS - 12.7%
BANKS - 0.8%
Bank of America
7.000%, 05/15/03 2,000 2,003
Bank One, Ser A, MTN
5.625%, 02/17/04 1,137 1,173
Wells Fargo
5.375%, 09/30/03 2,000 2,032
- -------------------------------------------------------------------------------
TOTAL BANKS 5,208
- -------------------------------------------------------------------------------
BROKER/DEALERS - 6.2%
Bear Stearns
6.700%, 08/01/03 1,600 1,618
6.625%, 01/15/04 2,650 2,741
6.150%, 03/02/04 9,756 10,134
8.750%, 03/15/04 2,405 2,560
Goldman Sachs Group (A)
6.650%, 08/01/03 2,750 2,786
Merrill Lynch, Ser B, MTN
7.850%, 05/30/03 2,750 2,762
6.800%, 11/03/03 1,715 1,760
Morgan Stanley
6.125%, 10/01/03 6,000 6,117
6.375%, 12/15/03 2,000 2,060
5.625%, 01/20/04 7,575 7,799
- -------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 40,337
- -------------------------------------------------------------------------------
APRIL 30, 2003 25
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
SHARES/FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 2.1%
Associates Corporation of North America
5.750%, 11/01/03 $ 3,000 $ 3,061
5.500%, 02/15/04 1,000 1,032
5.800%, 04/20/04 2,000 2,084
Associates Corporation of North America,
Ser F, MTN
6.290%, 08/19/03 1,850 1,873
Caterpillar Financial Service, Ser F, MTN
4.800%, 08/01/03 3,750 3,781
Citigroup
5.700%, 02/06/04 1,500 1,549
- -------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 13,380
- -------------------------------------------------------------------------------
ELECTRICAL SERVICES - 2.5%
Alabama Power, Ser I
5.350%, 11/15/03 6,350 6,468
Alabama Power, Ser M
7.850%, 05/15/03 9,825 9,845
- -------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 16,313
- -------------------------------------------------------------------------------
UTILITIES - 1.1%
National Rural Utilities
5.300%, 09/25/03 1,000 1,013
6.000%, 01/15/04 6,215 6,414
- -------------------------------------------------------------------------------
TOTAL UTILITIES 7,427
- -------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(COST $82,665) 82,665
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 7.7%
Deutsche Bank
1.23% dated 04/30/03, matures
05/01/03, repurchase price $49,656,697
(collateralized by U.S. Treasury obligations,
total market value $50,648,249) (B) 49,655 49,655
- -------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $49,655) 49,655
- -------------------------------------------------------------------------------
MONEY MARKET FUND - 1.7%
Financial Square Government Money Market Fund 10,814,267 10,814
- -------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(COST $10,814) 10,814
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.9%
(COST $646,946) 646,946
- -------------------------------------------------------------------------------
26 APRIL 30, 2003
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 0.1%
Investment Advisory Fees Payable $ (91)
Administrator Fees Payable (76)
Custodian Fees Payable (10)
Distribution Fees Payable (83)
Other Assets and Liabilities, Net 1,162
- -------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES 902
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 276,191,126 outstanding shares of
beneficial interest 276,194
Portfolio Capital of Investment Service Shares
(unlimited authorization -- no par value)
based on 326,873,532 outstanding shares of
beneficial interest 326,873
Portfolio Capital of Investment Sweep Class Shares
(unlimited authorization -- no par value)
based on 44,747,260 outstanding shares of
beneficial interest 44,746
Undistributed net investment income 31
Accumulated net realized gain on investments 4
- -------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $647,848
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES $1.00
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SERVICE SHARES $1.00
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
SWEEP CLASS SHARES $1.00
- -------------------------------------------------------------------------------
(A) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, a amended,
and may be sold only to dealers in the program or other "accredited investors".
(B) Tri-Party Repurchase Agreement
MTN -- Medium Term Note
Ser -- Series
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2003 27
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
MUNICIPAL BONDS - 100.4%
ALABAMA - 3.1%
Mobile, Industrial Development Board RB,
Holnam Project, Ser B (A) (B) (C)
1.350%, 06/01/32 $5,200 $ 5,200
Montgomery County,
Special Care Financing Authority RB,
VHA, Alabama Project, Ser H, AMBAC (A) (B)
1.400%, 12/01/30 1,200 1,200
- -------------------------------------------------------------------------------
TOTAL ALABAMA 6,400
- -------------------------------------------------------------------------------
ARIZONA - 0.3%
Apache County,
Industrial Development Authority RB,
Tucson Electrical Power,
Springerville Project (A) (B) (C)
1.400%, 12/01/20 600 600
- -------------------------------------------------------------------------------
TOTAL ARIZONA 600
- -------------------------------------------------------------------------------
CALIFORNIA - 0.5%
California State,
Higher Education Loan Authority RB,
Ser D (A) (B) (C)
2.900%, 07/01/03 1,000 1,002
- -------------------------------------------------------------------------------
TOTAL CALIFORNIA 1,002
- -------------------------------------------------------------------------------
COLORADO - 1.5%
Castle Pines,
North Metropolitan District Authority
GO (A) (B) (C)
1.500%, 12/01/28 1,100 1,100
SBC Metropolitan District GO (A) (B) (C)
1.340%, 12/01/17 2,000 2,000
- -------------------------------------------------------------------------------
TOTAL COLORADO 3,100
- -------------------------------------------------------------------------------
CONNECTICUT - 0.5%
New Britain, BAN
2.250%, 04/08/04 1,005 1,016
- -------------------------------------------------------------------------------
TOTAL CONNECTICUT 1,016
- -------------------------------------------------------------------------------
DELAWARE - 0.4%
Delaware State,
Economic Development Authority RB,
School House Project (A) (B) (C)
1.400%, 12/01/15 750 750
- -------------------------------------------------------------------------------
TOTAL DELAWARE 750
- -------------------------------------------------------------------------------
FLORIDA - 4.7%
Alachua County, Health Facilities Authority RB,
Oak Hammock University Project,
Ser A (A) (B) (C)
1.350%, 10/01/32 4,400 4,400
Miami-Dade County,
Industrial Development Authority RB,
Holy Cross Academy Project (A) (B) (C)
1.350%, 07/01/20 1,300 1,300
28 APRIL 30, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
Orange County,
Industrial Development Authority RB,
Orlando Hawaiian Motel (A) (B) (C)
1.350%, 10/01/15 $ 730 $ 730
Orange County,
Multifamily Housing Finance Authority RB,
Post Lake Apartments Project,
FNMA (A) (B)
1.350%, 06/01/25 500 500
Palm Beach County,
Economic Development Authority RB,
YMCA Boynton Beach Project (A) (B) (C)
1.350%, 01/01/24 1,700 1,700
Pinellas County,
Health Facilities Authority RB,
Pooled Hospital Loan Program,
AMBAC (A) (B) (C)
1.350%, 12/01/15 1,100 1,100
- -------------------------------------------------------------------------------
TOTAL FLORIDA 9,730
- -------------------------------------------------------------------------------
GEORGIA - 6.5%
Dalton, Utilities Authority RB, Ser A02, FSA (A) (B)
1.460%, 01/01/12 2,100 2,100
Dekalb County, Development Authority RB,
American Cancer Society (A) (B) (C)
1.350%, 09/01/17 1,300 1,300
Dekalb County, Multi-Family Housing Authority RB,
Winters Creek Apartments Project, FNMA (A) (B)
1.350%, 06/15/25 300 300
Fulton County, Multi-Family Housing Authority RB,
Champions Green Apartment Project, Ser B (A) (B)
1.350%, 10/01/25 3,450 3,450
Fulton County, Multi-Family Housing Authority RB,
Hampton Hills Apartment Project (A) (B)
1.350%, 06/01/23 600 600
Georgia State, Private Colleges & Universities
Authority RB, Emory University Project,
Ser B (A) (B)
1.350%, 09/01/33 1,600 1,600
Macon-Bibb County, Hospital Authority RB,
Medical Control Center Project (A) (B) (C)
1.350%, 12/01/18 1,700 1,700
Private Colleges & Universities Authority
RB (A) (B) (C)
1.500%, 10/01/32 1,500 1,500
Savannah Housing Revenue Authority RB,
Somerset Wharf Project, Ser B, FNMA (A) (B)
1.350%, 06/15/26 800 800
Thomasville, Hospital Authority RB, Anticipation
Certificates, J.D. Archbold Project (A) (B) (C)
1.350%, 11/01/17 100 100
- -------------------------------------------------------------------------------
TOTAL GEORGIA 13,450
- -------------------------------------------------------------------------------
APRIL 30, 2003 29
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
ILLINOIS - 10.5%
Central Lake County RB, Ser B18,
AMBAC (A) (B)
1.460%, 05/01/20 $ 900 $ 900
Cook County GO, Ser B11, AMBAC (A) (B)
1.460%, 11/15/25 500 500
East Peoria, Multi-Family Housing RB
(A) (B) (C)
1.500%, 06/01/08 470 470
Illinois Educational Facilities RB,
Field Museum of Natural History
(A) (B) (C)
1.350%, 11/01/32 1,500 1,500
Illinois State,
Development Finance Authority RB,
Goodman Theater Project (A) (B) (C)
1.400%, 12/01/33 1,750 1,750
Illinois State,
Development Finance Authority RB,
WBEZ Alliance Project (A) (B) (C)
1.350%, 03/01/29 1,800 1,800
Illinois State,
Development Finance Authority RB,
World Communications Project, (A) (B) (C)
1.350%, 08/01/15 2,900 2,900
Illinois State,
Educational Facilities Authority RB,
ACI Cultural Pooled Financing Project
(A) (B) (C)
1.400%, 08/01/30 1,900 1,900
Illinois State,
Educational Facilities Authority RB,
ACI Cultural Pooled Financing
(A) (B) (C)
1.350%, 03/01/28 2,300 2,300
Kane, Cook & Du Page Counties
2.250%, 11/28/03 1,000 1,003
Lincolnwood,
Industrial Development Authority RB,
Self Storage Center Project (A) (B) (C)
1.500%, 02/01/04 1,270 1,270
Oakbrook Terrace,
Industrial Development Authority RB,
Oakbrook Terrace Atrium Project
(A) (B) (C)
1.250%, 12/01/25 2,000 2,000
Orland Park,
Industrial Development Authority
RB (A) (B) (C)
1.400%, 12/28/04 855 855
Rockford, School District TAW
2.780%, 10/30/03 1,000 1,003
3.100%, 10/31/03 1,000 1,006
Tinley Park, Special Assessment RB,
Town Pointe Development Project
(A) (B) (C)
1.400%, 02/01/07 575 575
- -------------------------------------------------------------------------------
TOTAL ILLINOIS 21,732
- -------------------------------------------------------------------------------
30 APRIL 30, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
INDIANA - 7.8%
Avon, Community School Warrants
1.950%, 12/31/03 $1,000 $ 1,002
Indiana State,
Development Finance Authority RB,
Cathedral High School Project
(A) (B) (C)
1.400%, 09/01/26 1,250 1,250
Indiana State,
Educational Facilities Authority RB,
Evansville University Project,
Ser B (A) (B) (C)
1.500%, 12/01/29 2,000 2,000
Indiana State,
Health Facilities Financing Authority
RB, Ascension Health Credit Group,
Ser A4 (A) (B)
1.150%, 11/15/36 3,000 3,000
Indiana State,
Health Facilities Financing Authority
RB, Capital Access Project (A) (B) (C)
1.350%, 04/01/13 1,500 1,500
1.350%, 01/01/20 4,150 4,150
Knox, Community School Corporate Industry TAW
1.750%, 12/31/03 1,000 1,002
Noblesville Redevelopment Authority
1.500%, 09/15/03 1,100 1,100
Tippecanoe Indiana, TAN
2.000%, 12/30/03 1,100 1,104
- -------------------------------------------------------------------------------
TOTAL INDIANA 16,108
- -------------------------------------------------------------------------------
IOWA - 3.7%
Chillicothe, Pollution Control Authority RB,
Iowa-Illinois Gas & Electric Project (A) (B)
1.500%, 01/01/23 2,850 2,850
Iowa State, Finance Authority RB,
Drake University Project (A) (B) (C)
1.400%, 07/01/31 100 100
Iowa State, Health Care Facilities Authority RB,
Care Initiatives Project (A) (B) (C)
1.400%, 11/01/32 3,200 3,200
Louisa County, Pollution Control Authority RB,
Iowa-Illinois Gas & Electric Project, Ser A (A) (B)
1.450%, 09/01/16 1,500 1,500
- -------------------------------------------------------------------------------
TOTAL IOWA 7,650
- -------------------------------------------------------------------------------
KANSAS - 3.1%
Kansas State, Finance Authority RB,
Kansas Department Administration, Ser J1 (A) (B)
1.400%, 12/01/18 4,900 4,900
Olathe, Health Facilities RB,
Olathe Medical Center, Ser A, AMBAC (A) (B)
1.400%, 09/01/32 300 300
Prairie Village RB, Corinth Place Apartments (A) (B)
1.350%, 11/01/30 1,350 1,350
- -------------------------------------------------------------------------------
TOTAL KANSAS 6,550
- -------------------------------------------------------------------------------
APRIL 30, 2003 31
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
KENTUCKY - 2.9%
Kentucky, Rural Water Financial RB (A) (B)
2.250%, 11/01/03 $1,000 $ 1,006
Lexington-Fayette Urban County,
Government Industrial
Building Authority RB, American Horse Shows
Association Project (A) (B) (C)
1.500%, 12/01/18 1,970 1,970
Lexington-Fayette Urban County, Sayre School
RB (A) (B) (C)
1.400%, 08/01/21 3,000 3,000
- -------------------------------------------------------------------------------
TOTAL KENTUCKY 5,976
- -------------------------------------------------------------------------------
LOUISIANA - 0.4%
East Baton Rouge RB, Pollution Control
Revenue (A) (B) (C)
1.350%, 06/01/11 800 800
- -------------------------------------------------------------------------------
TOTAL LOUISIANA 800
- -------------------------------------------------------------------------------
MASSACHUSETTS - 0.9%
Blackstone Valley Vocational School
Authority BAN
2.500%, 07/15/03 1,000 1,001
Massachusetts State, Health and Educational
Facilities GO, Capital Asset Program,
Ser E (A) (B) (C)
1.400%, 01/01/35 900 900
- -------------------------------------------------------------------------------
TOTAL MASSACHUSETTS 1,901
- -------------------------------------------------------------------------------
MICHIGAN - 3.6%
Cedar Springs Public School GO,
State Aid Notes
1.800%, 08/21/03 2,300 2,301
Farmington Hills,
Hospital Finance Authority RB,
Botsford General Hospital, Ser B,
MBIA (A) (B)
1.400%, 02/15/16 350 350
Jackson County,
Economic Development Authority RB,
Thrifty Leoni Project (A) (B) (C)
1.700%, 12/01/14 1,000 1,000
Michigan State, Job Development Authority RB,
East Lansing Residential Project (A) (B) (C)
1.180%, 12/01/14 900 900
Michigan State, Municipal Bond Authority RN
2.250%, 08/22/03 1,500 1,504
Pinckney, Community Schools State Aid Notes
1.850%, 08/21/03 1,500 1,501
- -------------------------------------------------------------------------------
TOTAL MICHIGAN 7,556
- -------------------------------------------------------------------------------
32 APRIL 30, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
MINNESOTA - 1.5%
Duluth, Economic Development Authority RB,
Miller-Dwan Medical Center Project
(A) (B) (C)
1.400%, 06/01/19 $ 540 $ 540
Mankato, Revenue Authority RB,
Bethany Lutheran College Project,
Ser B, (A) (B) (C)
1.400%, 11/01/15 1,740 1,740
Minneapolis RB,
Minnehaha Academy School Project
(A) (B) (C)
1.450%, 05/01/26 900 900
- -------------------------------------------------------------------------------
TOTAL MINNESOTA 3,180
- -------------------------------------------------------------------------------
MISSOURI - 8.2%
Clayton,
Industrial Development Authority RB,
Bailey Court Project (A) (B) (C)
1.510%, 01/01/09 500 500
Kansas City,
Industrial Development Authority RB,
Bethesda Living Center Project,
Ser A (A) (B) (C)
1.400%, 08/01/31 2,200 2,200
Kansas City,
Industrial Development Authority RB,
Ewing Marion Kauffman, Ser A (A) (B)
1.350%, 04/01/27 1,100 1,100
Kansas City,
Industrial Development Authority RB,
Ewing Marion Kaufman (A) (B)
1.350%, 04/01/27 4,040 4,040
Missouri State,
Health & Educational Facilities
Authority RB, Drury College Project
(A) (B) (C)
1.400%, 08/15/24 550 550
Missouri State,
Health & Educational Facilities
Authority RN, Camdenton Project, Ser C
2.250%, 10/24/03 3,050 3,059
Missouri State,
Health & Educational Facilities RB,
Saint Francis Medical Center Project,
Ser A (A) (B) (C)
1.350%, 06/01/26 3,135 3,135
Missouri State, State Office Buildings RB,
Ser B (A) (B)
4.000%, 12/01/03 1,500 1,520
Saint Louis,
Industrial Development Authority RB,
Schnuck Markets Kirkwood Project (A) (B) (C)
1.400%, 12/01/15 900 900
- -------------------------------------------------------------------------------
TOTAL MISSOURI 17,004
- -------------------------------------------------------------------------------
MONTANA - 0.7%
Montana State, Board Investment RB,
Municipal Finance
Consolidated-Intercapitalization
Project (A) (B)
1.350%, 03/01/25 1,500 1,500
- -------------------------------------------------------------------------------
TOTAL MONTANA 1,500
- -------------------------------------------------------------------------------
APRIL 30, 2003 33
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
NEBRASKA - 0.8%
Nebraska State, Educational Financial Authority,
Creighton University Project RB (A) (B) (C)
1.350%, 08/01/31 $1,700 $ 1,700
- -------------------------------------------------------------------------------
TOTAL NEBRASKA 1,700
- -------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.9%
Androscoggin Valley BAN
2.000%, 07/24/03 5,000 5,008
Coos County TAN
1.625%, 12/31/03 1,000 1,002
- -------------------------------------------------------------------------------
TOTAL NEW HAMPSHIRE 6,010
- -------------------------------------------------------------------------------
NEW YORK - 3.9%
New York, Public Improvements Project GO,
Ser A-4 (A) (B) (C)
1.300%, 08/01/21 1,000 1,000
New York, Ser D, FGIC (A) (B)
1.300%, 02/01/21 5,700 5,700
Suffolk County, Water Authority BAN (A)
1.300%, 01/01/08 1,500 1,500
- -------------------------------------------------------------------------------
TOTAL NEW YORK 8,200
- -------------------------------------------------------------------------------
OHIO - 6.0%
Allen County BAN
1.780%, 09/10/03 1,000 1,001
American Municipal Power BAN
1.600%, 12/04/03 670 670
1.450%, 12/19/03 420 420
Brook Park BAN
1.600%, 01/07/04 700 701
Clermont County, Economic Development Authority RB,
John Q. Hammons Project (A) (B) (C)
1.850%, 05/01/12 700 700
Ohio State, Higher Educational Facility RB,
Case Western Reserve, Ser A (A) (B)
1.400%, 10/01/31 2,800 2,800
Ohio State, American Municipal Power BAN,
Electric System Improvement Project
1.800%, 07/16/03 500 500
Ohio State, American Municipal Power BAN,
Saint Mary's City Project
1.700%, 10/09/03 870 870
Ohio State, Higher Education Facilities RB,
Kenyon College Project (A) (B)
1.400%, 08/01/33 150 150
34 APRIL 30, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
Shaker Heights GO, Community Development
Project (A) (B)
2.250%, 07/10/03 $1,000 $ 1,001
Toledo Lucas County,
Port Facilities Authority RB,
Toledo Museum of Art Project (A) (B) (C)
1.350%, 09/01/19 1,200 1,200
Toledo University RB, FGIC (A) (B)
1.400%, 06/01/32 2,500 2,500
- -------------------------------------------------------------------------------
TOTAL OHIO 12,513
- -------------------------------------------------------------------------------
OKLAHOMA - 1.0%
Tulsa, Industrial Development Authority RB,
Tulsa County Housing Fund Project (A) (B)
1.450%, 10/01/32 2,000 2,000
- -------------------------------------------------------------------------------
TOTAL OKLAHOMA 2,000
- -------------------------------------------------------------------------------
OREGON - 2.3%
Oregon State TRAN, Ser A,
3.250%, 05/01/03 1,000 1,000
Portland Economic Development RB,
Broadway Project,
Ser A, AMBAC (A) (B) (C)
1.400%, 04/01/35 3,750 3,750
- -------------------------------------------------------------------------------
TOTAL OREGON 4,750
- -------------------------------------------------------------------------------
PENNSYLVANIA - 8.8%
Allegheny County RB,
Industrial Development Authority,
Jewish Home & Hospital Project,
Ser B (A) (B) (C)
1.400%, 10/01/26 1,240 1,240
Dauphin County, General Authority RB,
Allied Health Pooled Financing Program,
Ser B, FSA (A) (B)
1.450%, 10/01/27 1,300 1,300
Luzerne County,
Convention Center Authority RB,
Hotel Room Rent Tax Project,
Ser A (A) (B) (C)
1.350%, 09/01/28 1,400 1,400
Pennsylvania Higher Educational Facility RB,
CICU Funding Program, Ser B7 (A) (B) (C)
1.400%, 11/01/23 1,300 1,300
Pennsylvania State,
Economic Development Financing
Authority RB, Philadelphia Area Project,
Ser J3 (A) (B) (C)
1.410%, 11/01/30 4,200 4,200
Pennsylvania State,
Higher Education Association
Independent Colleges RB, Ser I1 (A) (B) (C)
1.400%, 11/01/31 2,000 2,000
Philadelphia RB, School for the Deaf
Project (A) (B) (C)
1.400%, 11/01/32 1,000 1,000
Philadelphia RB, Childrens Hospital Project,
Ser D, MBIA (A) (B)
1.350%, 07/01/31 1,000 1,000
APRIL 30, 2003 35
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
Philadelphia RB, Industrial Development Authority,
Ingles House Project (A) (B)
1.850%, 05/01/17 $ 500 $ 500
Philadelphia TRAN, Ser A
3.000%, 06/30/03 3,000 3,007
Philadelphia, Hospital & Higher Education Facilities
Authority RB, Temple East Project,
Ser B (A) (B) (C)
1.450%, 06/01/14 300 300
Temple University, Commonwealth of Higher
Education RN
1.200%, 05/04/04 1,000 1,000
- -------------------------------------------------------------------------------
TOTAL PENNSYLVANIA 18,247
- -------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3%
South Dakota Housing Development Authority RB,
Ser A (A) (B)
3.750%, 05/01/03 685 685
- -------------------------------------------------------------------------------
TOTAL SOUTH DAKOTA 685
- -------------------------------------------------------------------------------
TENNESSEE - 1.2%
Chattanooga,
Health Education and Facilities Board RB,
McCallie School Project (A) (B) (C)
1.350%, 12/01/23 1,400 1,400
Wilson County, Industrial Development Board RB,
Hartmann Luggage Project (A) (B)
1.540%, 07/01/26 1,100 1,100
- -------------------------------------------------------------------------------
TOTAL TENNESSEE 2,500
- -------------------------------------------------------------------------------
TEXAS - 1.5%
Corpus Christi,
Industrial Development Authority RB,
Texas Air Investment Project (A) (B) (C)
1.450%, 08/01/11 385 385
Garland, Health Facilities Authority RB,
Chambrel Club Project (A) (B)
1.400%, 11/15/32 2,700 2,700
- -------------------------------------------------------------------------------
TOTAL TEXAS 3,085
- -------------------------------------------------------------------------------
UTAH - 1.8%
Murray City TRAN
2.250%, 06/30/03 3,100 3,105
Weber County School District GO (A) (B)
4.000%, 06/15/03 565 567
- -------------------------------------------------------------------------------
TOTAL UTAH 3,672
- -------------------------------------------------------------------------------
36 APRIL 30, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
VERMONT - 1.9%
Vermont State, Educational & Health Buildings Financing
Authority RB, Capital Asset Financing Program,
Ser 1 (A) (B) (C)
1.450%, 06/01/22 $3,900 $ 3,900
- -------------------------------------------------------------------------------
TOTAL VERMONT 3,900
- -------------------------------------------------------------------------------
WASHINGTON - 1.5%
Seattle, Low Income Housing Authority RB,
Foss Home Project (A) (B) (C)
1.400%, 12/01/24 140 140
Washington State GO, Ser A11, MBIA (A) (B)
1.460%, 06/01/17 700 700
Washington State, Housing Finance Commission
Non-Profit RB, Panorama City Project (A) (B) (C)
1.400%, 01/01/27 500 500
Washington State, Housing Finance Commission
Non-Profit RB, Rockwood Retirement
Community (A) (B) (C)
1.400%, 01/01/34 1,000 1,000
Washington State, Housing Finance Commission
Non-Profit RB, Tacoma Art Museum Project
(A) (B) (C)
1.400%, 06/01/32 100 100
Washington State, Housing Finance Commission
Non-Profit RB, St. Vincent DePaul Project,
Ser A, (A) (B) (C)
1.400%, 02/01/30 500 500
Washington State, Housing Finance Commission
Non-Profit RB, YMCA Columbia/Willamette
Project (A) (B) (C)
1.400%, 08/01/24 100 100
- -------------------------------------------------------------------------------
TOTAL WASHINGTON 3,040
- -------------------------------------------------------------------------------
WEST VIRGINIA - 0.6%
Putnam County, Industrial Development RB,
FMC Project (A) (B) (C)
1.150%, 10/01/11 1,200 1,200
- -------------------------------------------------------------------------------
TOTAL WEST VIRGINIA 1,200
- -------------------------------------------------------------------------------
WISCONSIN - 3.5%
Chippewa Falls BAN
2.000%, 11/01/03 1,075 1,080
Fond Du Lac BAN
1.800%, 04/30/04 2,945 2,962
APRIL 30, 2003 37
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
Milwaukee RB, Montessori Society School
Project (A) (B) (C)
1.450%, 07/01/21 $ 600 $ 600
Wisconsin State,
Health & Educational Facilities
Authority RB, Gundersen Lutheran Project,
Ser A, FSA (A) (B)
1.400%, 12/01/15 800 800
Wisconsin State,
Health & Educational Facilities
Authority RB, Milwaukee Protestant
Home Project, Ser A (A) (B) (C)
1.400%, 10/01/29 900 900
Wisconsin State,
Health & Educational Facilities
Authority RB, Oakwood Village
East Lutheran Homes Project (A) (B) (C)
1.400%, 08/15/30 1,000 1,000
- -------------------------------------------------------------------------------
TOTAL WISCONSIN 7,342
- -------------------------------------------------------------------------------
WYOMING - 0.7%
Cambell County, School District TAW
2.500%, 06/26/03 1,500 1,501
- -------------------------------------------------------------------------------
TOTAL WYOMING 1,501
- -------------------------------------------------------------------------------
MULTI-STATE - 0.9%
Greystone,
Municipal Lease Certificate Trust
Authority COP, Ser A (A) (B) (C)
1.530%, 07/01/05 565 565
Greystone,
Tax Exempt Certificate Trust Authority RB,
Senior Certificate of Beneficial
Ownership Project (A) (B) (C)
1.510%, 05/01/28 605 605
McDonald Tax-Exempt Mortgage Trust (A) (B) (C)
2.100%, 01/15/09 748 748
- -------------------------------------------------------------------------------
TOTAL MULTI-STATE 1,918
- -------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $208,268) 208,268
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.4%
(COST $208,268) 208,268
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - (0.4)%
Investment Advisory Fees Payable (30)
Administrator Fees Payable (26)
Custodian Fees Payable (3)
Distribution Fees Payable (30)
Other Assets and Liabilities, Net (767)
- -------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES (856)
- -------------------------------------------------------------------------------
38 APRIL 30, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- -------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 84,908,748 outstanding shares of
beneficial interest $ 84,909
Portfolio Capital of Investment Investment Service Shares
(unlimited authorization -- no par value)
based on 96,125,722 outstanding shares of
beneficial interest 96,126
Portfolio Capital of Sweep Class Shares
(unlimited authorization -- no par value)
based on 26,387,280 outstanding shares of
beneficial interest 26,387
Accumulated net realized loss on investments (10)
- -------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $207,412
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES $1.00
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SERVICE SHARES $1.00
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
SWEEP CLASS SHARES $1.00
- -------------------------------------------------------------------------------
(A) Floating rate security.
(B) Put & Demand Feature -- the date reported is the final maturity date, not
the next reset or put date.
(C) Securities are held in conjunction with a letter of credit from a major
bank or financial institution.
AMBAC -- American Municipal Bond Assurance Company
BAN -- Bond Anticipation Notes
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RB -- Revenue Bond
RN -- Revenue Notes
Ser -- Series
TAN -- Tax Anticipation Notes
TAW -- Tax Anticipation Warrants
TRAN -- Tax & Revenue Anticipation Notes
VHA -- Veterans Hospital Authority
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2003 39
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
For the six months ended April 30, 2003
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND
---------- -------------
INVESTMENT INCOME:
Dividends $ 1,544 $ 137
Interest 16 4
-------- -------
Total investment income 1,560 141
-------- -------
EXPENSES:
Investment advisory fees 637 50
Administrator fees 170 37
Transfer agent fees 141 56
Custodian fees 17 1
Distribution fees --
Investment Shares - Class A 9 --
Investment Shares - Class B 64 3
Professional fees 15 8
Printing fees 6 1
Registration fees 5 1
Trustees' fees 3 --
Other fees 9 1
-------- -------
Total expenses 1,076 158
-------- -------
Less:
Waiver of investment advisory fees -- (50)
Reimbursement of investment
advisor fees -- (20)
-------- -------
Net expenses 1,076 88
-------- -------
NET INVESTMENT INCOME 484 53
-------- --------
Net realized loss on investments (18,185) (2,848)
Net change in unrealized appreciation
of investments 25,854 2,949
-------- -------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 7,669 101
-------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 8,153 $ 154
======== =======
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
40 APRIL 30, 2003
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
For the six months ended April 30, 2003
EXPEDITION EXPEDITION
INVESTMENT TAX-FREE INVESTMENT
GRADE BOND GRADE BOND
FUND FUND
---------- -------------------
INVESTMENT INCOME:
Interest $3,144 $1,674
------ ------
Total investment income 3,144 1,674
------ ------
EXPENSES:
Investment advisory fees 295 190
Administrator fees 118 76
Transfer agent fees 81 46
Custodian fees 12 8
Distribution fees --
Investment Shares - Class A 7 1
Investment Shares - Class B 10 1
Professional fees 12 10
Registration fees 5 3
Printing fees 4 3
Trustees' fees 1 1
Other fees 6 7
------ ------
Total expenses 551 346
------ ------
Less:
Waiver of investment advisory fees (62) (38)
------ ------
Net expenses 489 308
------ ------
NET INVESTMENT INCOME 2,655 1,366
------ ------
Net realized gain on investments 446 1,138
Net change in unrealized appreciation
of investments 1,607 285
------ ------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 2,053 1,423
------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $4,708 $2,789
====== ======
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2003 41
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
For the six months ended April 30, 2003
EXPEDITION
EXPEDITION TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
------------ ------------
INVESTMENT INCOME:
Interest $4,470 $1,245
------ ------
Total investment income 4,470 1,245
------ ------
EXPENSES:
Investment advisory fees 1,203 369
Administrator fees 451 138
Transfer agent fees 221 57
Custodian fees 60 18
Shareholder Servicing Fees --
Investment Service Shares 414 115
Sweep Class Shares 89 32
Professional fees 29 14
Registration fees 27 6
Printing fees 18 6
Trustees' fees 9 2
Amortization of organization costs -- 1
Other fees 9 4
------ ------
Total expenses 2,530 762
------ ------
Less:
Waiver of investment advisory fees (674) (218)
------ ------
Net expenses 1,856 544
------ ------
NET INVESTMENT INCOME 2,614 701
------ ------
Net realized gain on investments 24 --
------ ------
NET REALIZED GAIN
ON INVESTMENTS 24 --
------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $2,638 $ 701
====== ======
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
42 APRIL 30, 2003
STATEMENTS OF CHANGES IN NET ASSETS (000)
For the six months ended April 30, 2003 (unaudited)
and the year ended October 31, 2002
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND
---------------------- ----------------------
Period Year Period Year
Ended Ended Ended Ended
04/30/03 10/31/02 04/30/03 10/31/02
--------- --------- --------- ---------
OPERATIONS:
Investment income $ 484 $ 220 $ 53 $ 99
Net realized loss on investments (18,185) (35,629) (2,848) (6,195)
Net change in unrealized appreciation
(depreciation) of investments 25,854 (22,715) 2,949 1,648
-------- --------- -------- -------
Net increase (decrease) in net assets resulting
from operations 8,153 (58,124) 154 (4,448)
-------- --------- -------- -------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Institutional Shares (577) -- (59) (100)
Investment Shares - Class A (7) -- (1) (1)
Investment Shares - Class B -- -- -- --
-------- --------- -------- -------
Total distributions (584) -- (60) (101)
-------- --------- -------- -------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 4,056 27,244 29 837
Shares issued in lieu of cash distributions 318 -- -- --
Payments for redemptions (42,223) (91,883) (1,856) (3,183)
-------- --------- -------- -------
Decrease in net assets from
Institutional Shares transactions (37,849) (64,639) (1,827) (2,346)
-------- --------- -------- -------
Investment Shares - Class A:
Proceeds from sales 708 2,186 18 185
Shares issued in lieu of cash distributions 7 -- 1 1
Payments for redemptions (624) (3,917) (46) (170)
-------- --------- -------- -------
Increase (decrease) in net assets from
Investment Shares - Class A transactions 91 (1,731) (27) 16
-------- --------- -------- -------
Investment Shares - Class B:
Proceeds from sales 786 3,115 46 399
Shares issued in lieu of cash distributions -- -- -- --
Payments for redemptions (1,313) (3,773) (81) (285)
-------- --------- -------- -------
Increase (decrease) in net assets from
Investment Shares - Class B transactions (527) (658) (35) 114
-------- --------- -------- -------
Total decrease in net assets from
capital share transactions (38,285) (67,028) (1,889) (2,216)
-------- --------- -------- -------
Total decrease in net assets (30,716) (125,152) (1,795) (6,765)
-------- --------- -------- -------
NET ASSETS AT BEGINNING OF PERIOD 193,279 318,431 14,880 21,645
-------- --------- -------- -------
NET ASSETS AT END OF PERIOD $162,563 $ 193,279 $ 13,085 $14,880
======== ========= ======== =======
(1) See note 5 in the notes to financial statements for additional information
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2003 43
STATEMENTS OF CHANGES IN NET ASSETS (000)
For the six months ended April 30, 2003 (unaudited)
and the year ended October 31, 2002
EXPEDITION
EXPEDITION TAX-FREE
INVESTMENT GRADE INVESTMENT GRADE
BOND FUND BOND FUND
---------------------- ----------------------
Period Year Period Year
Ended Ended Ended Ended
04/30/03 10/31/02 04/30/03 10/31/02
--------- --------- --------- ---------
OPERATIONS:
Investment income $ 2,655 $ 6,122 $ 1,366 $ 3,068
Net realized gain on investments 446 1,462 1,138 1,276
Net change in unrealized appreciation
(depreciation) of investments 1,607 151 285 (590)
-------- -------- ------- --------
Net increase in net assets resulting
from operations 4,708 7,735 2,789 3,754
-------- -------- ------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Institutional Shares (2,531) (5,843) (1,361) (3,033)
Investment Shares - Class A (116) (250) (9) (31)
Investment Shares - Class B (36) (54) (3) (6)
Realized capital gains net:
Institutional Shares -- -- (1,267) (335)
Investment Shares - Class A -- -- (14) (3)
Investment Shares - Class B -- -- (4) (1)
-------- -------- ------- --------
Total distributions (2,683) (6,147) (2,658) (3,409)
-------- -------- ------- --------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 19,225 24,890 7,337 6,231
Shares issued in lieu of cash distributions 1,437 3,393 939 327
Payments for redemptions (17,632) (38,707) (7,084) (18,293)
-------- -------- ------- --------
Increase (decrease) in net assets from
Institutional Shares transactions 3,030 (10,424) 1,192 (11,735)
-------- -------- ------- --------
Investment Shares - Class A:
Proceeds from sales 231 459 8 2
Shares issued in lieu of cash distributions 90 189 23 33
Payments for redemptions (218) (698) (504) (86)
-------- -------- ------- --------
Increase (decrease) in net assets from
Investment Shares - Class A transactions 103 (50) (473) (51)
-------- -------- ------- --------
Investment Shares - Class B:
Proceeds from sales 490 1,224 39 63
Shares issued in lieu of cash distributions 33 47 6 5
Payments for redemptions (213) (454) (10) (27)
-------- -------- ------- --------
Increase in net assets from Investment
Shares - Class B transactions 310 817 35 41
-------- -------- ------- --------
Total increase (decrease) in net assets from
capital share transactions 3,443 (9,657) 754 (11,745)
-------- -------- ------- --------
Total increase (decrease) in net assets 5,468 (8,069) 885 (11,400)
-------- -------- ------- --------
NET ASSETS AT BEGINNING OF PERIOD 117,531 125,600 76,115 87,515
-------- -------- ------- --------
NET ASSETS AT END OF PERIOD $122,999 $117,531 $77,000 $ 76,115
======== ======== ======= ========
(1) See note 5 in the notes to financial statements for additional information
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
44 APRIL 30, 2003
STATEMENTS OF CHANGES IN NET ASSETS (000)
For the six months ended April 30, 2003 (unaudited)
and the year ended October 31, 2002
EXPEDITION
EXPEDITION TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
------------------- -------------------
Period Year Period Year
Ended Ended Ended Ended
04/30/03 10/31/02 04/30/03 10/31/02
-------- -------- -------- --------
OPERATIONS:
Investment income $ 2,614 $ 7,835 $ 701 $ 1,748
Net realized gain (loss) on investments 24 (21) -- (3)
--------- --------- --------- ---------
Net increase in net assets resulting
from operations 2,638 7,814 701 1,745
--------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Institutional Shares (1,148) (2,741) (351) (829)
Investment Service Shares (1,314) (4,494) (304) (881)
Sweep Class Shares (162) (601) (45) (38)
--------- --------- --------- ---------
Total distributions (2,624) (7,836) (700) (1,748)
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 434,804 781,592 127,340 203,523
Shares issued in lieu of
cash distributions 56 149 -- --
Payments for redemptions (396,993) (691,209) (140,227) (141,669)
--------- --------- --------- ---------
Increase (decrease) in net assets from
Institutional Shares transactions 37,867 90,532 (12,887) 61,854
--------- --------- --------- ---------
Investment Service Shares:
Proceeds from sales 332,976 721,789 140,284 166,273
Shares issued in lieu of
cash distributions 137 398 2 12
Payments for redemptions (363,209) (743,113) (121,021) (202,949)
--------- --------- --------- ---------
Increase (decrease) in net assets from
Investment Service Shares transactions (30,096) (20,926) 19,265 (36,664)
--------- --------- --------- ---------
Sweep Class Shares:
Proceeds from sales 66,242 154,371 36,821 17,731
Shares issued in lieu of
cash distributions 152 575 11 33
Payments for redemptions (72,100) (157,019) (18,873) (13,404)
--------- --------- --------- ---------
Increase (decrease) in net assets from
Sweep Class Shares transactions (5,706) (2,073) 17,959 4,360
--------- --------- --------- ---------
Total increase in net assets from
capital share transactions 2,065 67,533 24,337 29,550
--------- --------- --------- ---------
Total increase in net assets 2,079 67,511 24,338 29,547
--------- --------- --------- ---------
NET ASSETS AT BEGINNING OF PERIOD 645,769 578,258 183,074 153,527
--------- --------- --------- ---------
NET ASSETS AT END OF PERIOD $ 647,848 $ 645,769 $ 207,412 $ 183,074
========= ========= ========= =========
(1) See note 5 in the notes to financial statements for additional information.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2003 45
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
- ------------------------------------------------------------------------------------------------------------------------------------
NET NET REALIZED AND DISTRIBUTIONS NET ASSET
ASSET VALUE, INVESTMENT UNREALIZED FROM NET DISTRIBUTIONS VALUE, NET ASSETS
BEGINNING INCOME GAINS OR (LOSSES) INVESTMENT FROM END OF TOTAL END OF
OF PERIOD (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS PERIOD RETURN+ PERIOD (000)
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY FUND EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003* $ 6.14 $ 0.01 $ 0.30 $(0.02) $ -- $ 6.43 5.13% $141,842
2002 7.99 0.01 (1.86) -- -- 6.14 (23.15)% 173,038
2001 14.25 (0.01) (4.44) -- (1.81) 7.99 (34.99)% 288,992
2000 13.09 (0.02) 2.67 -- (1.49) 14.25 22.01% 422,148
1999 10.55 -- 3.13 -- (0.59) 13.09 30.87% 363,694
1998 9.39 0.06 1.67 (0.06) (0.51) 10.55 19.18% 283,170
Investment Shares - Class A
2003* $ 6.08 $ 0.01 $ 0.29 $(0.01) $ -- $ 6.37 4.87% $ 7,557
2002 7.93 (0.02) (1.83) -- -- 6.08 (23.33)% 7,100
2001 14.18 (0.03) (4.41) -- (1.81) 7.93 (35.11)% 11,253
2000 13.06 (0.03) 2.64 -- (1.49) 14.18 21.73% 10,090
1999 10.58 (0.03) 3.10 -- (0.59) 13.06 30.16% 4,688
1998(1) 9.65 0.04 1.45 (0.05) (0.51) 10.58 16.16% 1,911
Investment Shares - Class B
2003* $ 5.87 $(0.02) $ 0.29 $ -- $ -- $ 6.14 4.60% $ 13,164
2002 7.72 (0.07) (1.78) -- -- 5.87 (23.96)% 13,141
2001 13.95 (0.09) (4.33) -- (1.81) 7.72 (35.61)% 18,186
2000 12.96 (0.08) 2.56 -- (1.49) 13.95 20.80% 20,358
1999(2) 10.82 (0.04) 2.77 -- (0.59) 12.96 26.31% 7,706
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND EQUITY INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003* $ 5.78 $ 0.03 $ 0.07 $(0.03) $ -- $ 5.85 1.72% $ 12,124
2002 7.42 0.04 (1.64) (0.04) -- 5.78 (21.66)% 13,865
2001 10.77 0.05 (2.82) (0.05) (0.53) 7.42 (26.99)% 20,401
2000(3) 10.00 0.07 0.76 (0.06) -- 10.77 8.36% 34,420
Investment Shares - Class A
2003* $ 5.77 $ 0.02 $ 0.07 $(0.02) $ -- $ 5.84 1.58% $ 286
2002 7.41 0.02 (1.64) (0.02) -- 5.77 (21.87)% 309
2001 10.76 0.04 (2.83) (0.03) (0.53) 7.41 (27.19)% 408
2000(4) 9.78 0.04 1.00 (0.06) -- 10.76 10.60% 286
Investment Shares - Class B
2003* $ 5.73 $(0.01) $ 0.07 $ --** $ -- $ 5.79 1.06% $ 675
2002 7.38 (0.03) (1.62) -- -- 5.73 (22.36)% 706
2001 10.75 (0.02) (2.82) -- (0.53) 7.38 (27.66)% 836
2000(5) 9.82 0.01 0.94 (0.02) -- 10.75 9.71% 427
* For the six months ended April 30, 2003 (unaudited). All ratios for the
period have been annualized.
** Amount represents less than $0.01.
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on November 24, 1997. All ratios for the period have
been annualized.
(2) Commenced operations on November 16, 1998. All ratios for the period have
been annualized.
(3) Commenced operations on March 3, 2000. All ratios for the period have been
annualized.
The accompanying notes are an integral part of the financial statements.
46 APRIL 30, 2003
- ---------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET RATIO OF EXPENSES RATIO OF NET INVESTMENT
EXPENSES INVESTMENT TO AVERAGE NET ASSETS INCOME (LOSS) TO AVERAGE NET
TO AVERAGE INCOME (LOSS) TO (EXCLUDING WAIVERS ASSETS (EXCLUDING WAIVERS PORTFOLIO
NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) TURNOVER RATE
- ---------------------------------------------------------------------------------------------------------------------------
EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003* 1.19% 0.66% 1.19% 0.66% 30.74%
2002 1.16% 0.16% 1.16% 0.16% 47.88%
2001 1.10% (0.09)% 1.10% (0.09)% 79.08%
2000 1.05% (0.22)% 1.05% (0.22)% 64.54%
1999 1.05% 0.04% 1.05% 0.04% 90.76%
1998 1.08% 0.38% 1.11% 0.35% 54.19%
Investment Shares - Class A
2003* 1.44% 0.41% 1.44% 0.41% 30.74%
2002 1.41% (0.09)% 1.41% (0.09)% 47.88%
2001 1.35% (0.32)% 1.35% (0.32)% 79.08%
2000 1.30% (0.49)% 1.30% (0.49)% 64.54%
1999 1.30% (0.21)% 1.30% (0.21)% 90.76%
1998(1) 1.29% (0.14)% 1.37% (0.22)% 54.19%
Investment Shares - Class B
2003* 2.19% (0.34)% 2.19% (0.34)% 30.74%
2002 2.16% (0.84)% 2.16% (0.84)% 47.88%
2001 2.10% (1.08)% 2.10% (1.08)% 79.08%
2000 2.05% (1.24)% 2.05% (1.24)% 64.54%
1999(2) 2.05% (0.95)% 2.05% (0.95)% 90.76%
- ---------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003* 1.25% 0.85% 2.30% (0.20)% 72.76%
2002 1.25% 0.56% 1.72% 0.09% 93.43%
2001 1.25% 0.60% 1.42% 0.43% 88.73%
2000(3) 1.25% 1.00% 1.25% 1.00% 73.31%
Investment Shares - Class A
2003* 1.50% 0.60% 2.55% (0.45)% 72.76%
2002 1.50% 0.32% 1.97% (0.15)% 93.43%
2001 1.50% 0.32% 1.67% 0.15% 88.73%
2000(4) 1.50% 0.84% 1.50% 0.84% 73.31%
Investment Shares - Class B
2003* 2.25% (0.15)% 3.30% (1.20)% 72.76%
2002 2.25% (0.43)% 2.72% (0.90)% 93.43%
2001 2.25% (0.45)% 2.42% (0.62)% 88.73%
2000(5) 2.25% (0.15)% 2.25% (0.15)% 73.31%
(4) Commenced operations on March 10, 2000. All ratios for the period have been
annualized.
(5) Commenced operations on March 15, 2000. All ratios for the period have been
annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
APRIL 30, 2003 47
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND DISTRIBUTIONS NET ASSET
ASSET VALUE, NET UNREALIZED FROM NET DISTRIBUTIONS VALUE, NET ASSETS
BEGINNING INVESTMENT GAINS OR (LOSSES) INVESTMENT FROM END OF TOTAL END OF
OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS PERIOD RETURN+ PERIOD (000)
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE
BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003* $10.77 $0.24 $0.19 $(0.25) $ -- $10.95 3.99% $115,242
2002 10.60 0.53 0.17 (0.53) -- 10.77 6.88% 110,312
2001 9.72 0.53 0.88 (0.53) -- 10.60 15.00% 119,279
2000 9.65 0.53 0.07 (0.53) -- 9.72 6.49% 136,354
1999 10.15 0.49 (0.50) (0.49) -- 9.65 (0.06)% 98,889
1998 9.85 0.51 0.30 (0.51) -- 10.15 8.43% 104,953
Investment Shares - Class A
2003* $10.76 $0.23 $0.18 $(0.23) $ -- $10.94 3.87% $ 5,500
2002 10.59 0.50 0.17 (0.50) -- 10.76 6.61% 5,305
2001 9.71 0.50 0.88 (0.50) -- 10.59 14.72% 5,262
2000 9.64 0.51 0.07 (0.51) -- 9.71 6.22% 5,222
1999 10.15 0.47 (0.51) (0.47) -- 9.64 (0.41)% 7,279
1998 9.85 0.49 0.30 (0.49) -- 10.15 8.25% 10,346
Investment Shares - Class B
2003* $10.78 $0.19 $0.19 $(0.19) $ -- $10.97 3.58% $ 2,257
2002 10.61 0.42 0.17 (0.42) -- 10.78 5.82% 1,914
2001 9.72 0.43 0.89 (0.43) -- 10.61 13.99% 1,059
2000 9.64 0.44 0.08 (0.44) -- 9.72 5.54% 204
1999(1) 10.06 0.38 (0.17) (0.63) -- 9.64 2.10% 214
- ---------------------------------------------------------------------------------------------------------------------------------
TAX-FREE INVESTMENT
GRADE BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003* $11.00 $0.20 $0.20 $(0.20) $(0.19) $11.01 3.69% $ 76,394
2002(2) 10.89 0.43 0.15 (0.43) (0.04) 11.00 5.50% 75,064
2001 10.37 0.44 0.52 (0.44) -- 10.89 9.53% 86,461
2000(3) 10.00 0.31 0.37 (0.31) -- 10.37 6.84% 84,729
Investment Shares - Class A
2003* $10.99 $0.18 $0.21 $(0.18) $(0.19) $11.01 3.66% $ 347
2002(2) 10.88 0.40 0.15 (0.40) (0.04) 10.99 5.24% 827
2001 10.36 0.42 0.52 (0.42) -- 10.88 9.26% 872
2000(4) 10.05 0.28 0.31 (0.28) -- 10.36 5.95% 523
Investment Shares - Class B
2003* $10.99 $0.14 $0.21 $(0.14) $(0.19) $11.01 3.28% $ 259
2002(2) 10.89 0.32 0.14 (0.32) (0.04) 10.99 4.36% 224
2001 10.37 0.34 0.52 (0.34) -- 10.89 8.45% 182
2000(5) 10.18 0.13 0.19 (0.13) -- 10.37 3.16% 3
* For the six months ended April 30, 2003 (unaudited). All ratios for the
period have been annualized.
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on November 16, 1998. All ratios for the period have
been annualized.
The accompanying notes are an integral part of the financial statements.
48 APRIL 30, 2003
- ---------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET RATIO OF EXPENSES RATIO OF NET INVESTMENT
EXPENSES INVESTMENT TO AVERAGE NET ASSETS INCOME TO AVERAGE NET
TO AVERAGE INCOME TO (EXCLUDING WAIVERS ASSETS (EXCLUDING WAIVERS PORTFOLIO
NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) TURNOVER RATE
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE
BOND FUND
- ---------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003* 0.80% 4.53% 0.90% 4.43% 10.58%
2002 0.80% 5.06% 0.90% 4.96% 13.80%
2001 0.77% 5.35% 0.86% 5.26% 29.53%
2000 0.75% 5.61% 0.89% 5.47% 77.09%
1999 0.90% 5.00% 1.15% 4.75% 39.57%
1998 0.94% 5.11% 1.13% 4.92% 32.93%
Investment Shares - Class A
2003* 1.05% 4.28% 1.15% 4.18% 10.58%
2002 1.05% 4.81% 1.15% 4.71% 13.80%
2001 1.02% 5.09% 1.11% 5.00% 29.53%
2000 1.00% 5.32% 1.14% 5.18% 77.09%
1999 1.15% 4.75% 1.40% 4.50% 39.57%
1998 1.10% 4.95% 1.25% 4.80% 32.93%
Investment Shares - Class B
2003* 1.80% 3.53% 1.90% 3.43% 10.58%
2002 1.80% 4.03% 1.90% 3.93% 13.80%
2001 1.77% 4.30% 1.86% 4.22% 29.53%
2000 1.75% 4.58% 1.89% 4.44% 77.09%
1999(1) 1.90% 4.07% 2.15% 3.82% 39.57%
- ---------------------------------------------------------------------------------------------------------------------
TAX-FREE INVESTMENT
GRADE BOND FUND
- ---------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003* 0.80% 3.60% 0.90% 3.50% 20.51%
2002(2) 0.80% 3.96% 0.88% 3.88% 23.39%
2001 0.77% 4.22% 0.83% 4.16% 29.84%
2000(3) 0.65% 4.58% 0.75% 4.48% 42.74%
Investment Shares - Class A
2003* 1.05% 3.35% 1.15% 3.25% 20.51%
2002(2) 1.05% 3.71% 1.13% 3.63% 23.39%
2001 1.02% 3.96% 1.08% 3.90% 29.84%
2000(4) 0.90% 4.36% 1.00% 4.26% 42.74%
Investment Shares - Class B
2003* 1.80% 2.60% 1.90% 2.50% 20.51%
2002(2) 1.80% 2.96% 1.88% 2.88% 23.39%
2001 1.77% 3.18% 1.83% 3.12% 29.84%
2000(5) 1.65% 3.56% 1.75% 3.46% 42.74%
(2) As required, effective November 1, 2001, the Funds adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies that
requires it to record the accretion of market discounts. The effect of this
change for the year ended October 31, 2002 was a decrease in the ratio of
net investment income to average net assets of 0.01%. Per share data and
ratios for period prior to November 1, 2001 have not been restated to
reflect this change in accounting.
(3) Commenced operations on March 3, 2000. All ratios for the period have been
annualized.
(4) Commenced operations on March 10, 2000. All ratios for the period have been
annualized.
(5) Commenced operations on June 23, 2000. All ratios for the period have been
annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
APRIL 30, 2003 49
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND DISTRIBUTIONS NET ASSET
ASSET VALUE, NET UNREALIZED FROM NET DISTRIBUTIONS VALUE, NET ASSETS
BEGINNING INVESTMENT GAINS OR (LOSSES) INVESTMENT FROM END OF TOTAL END OF
OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS PERIOD RETURN+ PERIOD (000)
- ---------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003* $1.00 $0.01 $-- $(0.01) $-- $1.00 0.52% $276,211
2002 1.00 0.01 -- (0.01) -- 1.00 1.56% 238,337
2001 1.00 0.04 -- (0.04) -- 1.00 4.61% 147,806
2000 1.00 0.06 -- (0.06) -- 1.00 5.96% 130,891
1999 1.00 0.05 -- (0.05) -- 1.00 4.83% 130,798
1998 1.00 0.05 -- (0.05) -- 1.00 5.33% 102,699
Investment Service Shares
2003* $1.00 $ --** $-- $ --** $-- $1.00 0.39% $326,887
2002 1.00 0.01 -- (0.01) -- 1.00 1.31% 356,976
2001 1.00 0.04 -- (0.04) -- 1.00 4.35% 377,922
2000 1.00 0.06 -- (0.06) -- 1.00 5.69% 324,583
1999 1.00 0.05 -- (0.05) -- 1.00 4.56% 186,431
1998 1.00 0.05 -- (0.05) -- 1.00 5.07% 142,910
Sweep Class Shares
2003* $1.00 $ --** $-- $ --** $-- $1.00 0.33% $ 44,750
2002 1.00 0.02 -- (0.02) -- 1.00 1.18% 50,456
2001 1.00 0.04 -- (0.04) -- 1.00 4.22% 52,530
2000(1) 1.00 0.01 -- (0.01) -- 1.00 1.53% 31,979
- ---------------------------------------------------------------------------------------------------------------------------------
TAX-FREE
MONEY MARKET FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003* $1.00 $ --** $-- $ --** $-- $1.00 0.46% $ 84,905
2002 1.00 0.01 -- (0.01) -- 1.00 1.28% 97,792
2001 1.00 0.03 -- (0.03) -- 1.00 2.97% 35,939
2000 1.00 0.04 -- (0.04) -- 1.00 3.80% 5,622
1999(2) 1.00 0.02 -- (0.02) -- 1.00 1.69% 28,874
Investment Service Shares
2003* $1.00 $ --** $-- $ --** $-- $1.00 0.33% $ 96,120
2002 1.00 0.01 -- (0.01) -- 1.00 1.02% 76,854
2001 1.00 0.03 -- (0.03) -- 1.00 2.71% 113,519
2000 1.00 0.03 -- (0.03) -- 1.00 3.54% 72,535
1999 1.00 0.03 -- (0.03) -- 1.00 2.77% 59,889
1998(3) 1.00 0.01 -- (0.01) -- 1.00 1.33% 64,542
Sweep Class Shares
2003* $1.00 $ --** $-- $ --** $-- $1.00 0.27% $ 26,387
2002 1.00 0.01 -- (0.01) -- 1.00 0.90% 8,428
2001 1.00 0.03 -- (0.03) -- 1.00 2.59% 4,069
2000(1) 1.00 0.01 -- (0.01) -- 1.00 1.00% 2,058
* For the six months ended April 30, 2003 (unaudited). All ratios for
the period have been annualized.
** Amount represents less than $0.01.
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on August 1, 2000. All ratios for the period have been
annualized.
(2) Commenced operations on April 14, 1999. All ratios for the period have been
annualized.
The accompanying notes are an integral part of the financial statements.
50 APRIL 30, 2003
- ---------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET RATIO OF EXPENSES RATIO OF NET INVESTMENT
EXPENSES INVESTMENT TO AVERAGE NET ASSETS INCOME TO AVERAGE NET
TO AVERAGE INCOME TO (EXCLUDING WAIVERS ASSETS (EXCLUDING WAIVERS
NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS)
- ---------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
- ---------------------------------------------------------------------------------------------------------
Institutional Shares
2003* 0.45% 1.04% 0.67% 0.82%
2002 0.45% 1.54% 0.68% 1.31%
2001 0.45% 4.59% 0.72% 4.32%
2000 0.43% 5.79% 0.69% 5.53%
1999 0.43% 4.73% 0.77% 4.39%
1998 0.43% 5.18% 0.66% 4.95%
Investment Service Shares
2003* 0.70% 0.79% 0.92% 0.57%
2002 0.70% 1.30% 0.93% 1.07%
2001 0.70% 4.17% 0.97% 3.90%
2000 0.68% 5.62% 0.94% 5.36%
1999 0.68% 4.47% 1.02% 4.13%
1998 0.68% 4.95% 0.91% 4.73%
Sweep Class Shares
2003* 0.82% 0.67% 1.04% 0.45%
2002 0.82% 1.18% 1.05% 0.95%
2001 0.82% 3.96% 1.09% 3.69%
2000(1) 0.80% 5.95% 1.06% 5.69%
- ---------------------------------------------------------------------------------------------------------
TAX-FREE
MONEY MARKET FUND
- ---------------------------------------------------------------------------------------------------------
Institutional Shares
2003* 0.43% 0.93% 0.67% 0.69%
2002 0.43% 1.25% 0.68% 1.00%
2001 0.43% 2.55% 0.76% 2.22%
2000 0.43% 3.61% 0.69% 3.35%
1999(2) 0.43% 3.06% 0.89% 2.60%
Investment Service Shares
2003* 0.68% 0.68% 0.92% 0.44%
2002 0.68% 1.03% 0.93% 0.78%
2001 0.68% 2.62% 1.01% 2.29%
2000 0.68% 3.48% 0.94% 3.22%
1999 0.68% 2.73% 0.95% 2.46%
1998(3) 0.68% 2.95% 0.78% 2.85%
Sweep Class Shares
2003* 0.80% 0.56% 1.04% 0.32%
2002 0.80% 0.91% 1.05% 0.66%
2001 0.80% 2.31% 1.13% 1.98%
2000(1) 0.80% 3.81% 1.06% 3.55%
(3) Commenced operations on May 20, 1998. All ratios for the period have been
annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
APRIL 30, 2003 51
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) ORGANIZATION
The Expedition Funds (the "Trust") are registered under the Investment Company
Act of 1940, as amended (the "1940 Act") as an open-end, management investment
company offering the following Funds as of April 30, 2003: the Expedition Equity
Fund (the "Equity Fund"), the Expedition Equity Income Fund (the "Equity Income
Fund"), the Expedition Investment Grade Bond Fund (the "Investment Grade Bond
Fund"), the Expedition Tax-Free Investment Grade Bond Fund (the "Tax-Free
Investment Grade Bond Fund"), the Expedition Money Market Fund (the "Money
Market Fund"), and the Expedition Tax-Free Money Market Fund (the "Tax-Free
Money Market Fund") (collectively, the "Funds"). The Funds are registered to
offer three classes of shares. The Equity, Equity Income, Investment Grade Bond,
and Tax-Free Investment Grade Bond Funds offer Institutional Shares, Investment
Shares - Class A and Investment Shares - Class B, and the Money Market and
Tax-Free Money Market Funds offer Institutional Shares, Investment Service
Shares and Sweep Class Shares. The assets of each Fund are segregated and a
shareholder's interest is limited to the Funds in which shares are held. The
investment objectives, policies, and strategies of the Funds are described in
their prospectuses.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds which are in conformity with accounting principles
generally accepted in the United States of America.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and income reported in the financial statements. Actual results could
differ from those estimated.
SECURITY VALUATION -- Investment securities held by the Money Market Fund and
the Tax-Free Money Market Fund are stated at amortized cost, which approximates
market value. Under this valuation method, purchase discounts and premiums are
accreted and amortized ratably to maturity and are included in interest income.
Investments in securities held in the Equity, Equity Income, Investment Grade
Bond, and Tax-Free Investment Grade Bond Funds are valued as follows: equity
securities that are traded on a national securities exchange are stated at the
last quoted sales price if readily available for such equity securities on each
business day; other equity securities traded in the over-the-counter market and
listed equity securities for which no sale was reported on that date are stated
at the last quoted bid price. Equity securities that are traded on the NASDAQ
National Market System for which quotations are readily available are valued at
the official closing price. Debt obligations exceeding sixty days to maturity
for which market quotations are readily available are valued at the mean of the
most recently quoted
52 APRIL 30, 2003
bid and asked price. Debt obligations with sixty days or less remaining until
maturity may be valued at their amortized cost. Restricted securities for which
quotations are not readily available are valued at fair value using methods
determined in good faith under general supervision of the Board of Trustees (the
"Trustees").
REPURCHASE AGREEMENTS -- It is the policy of the Funds to require the custodian
bank to take possession, to have legally segregated in the Federal Reserve Book
Entry System, or to have segregated within the custodian bank's vault, all
securities held as collateral under repurchase agreement transactions.
Additionally, procedures have been established by the Funds to monitor, on a
daily basis, the market value of each repurchase agreement's collateral to
ensure that the value of collateral at least equals the repurchase price to be
paid under the repurchase agreement transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
Compass Asset Management, a division of Compass Bank, the Funds' investment
advisor (the "Advisor"), to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Trustees. Risks may arise from the
potential inability of counterparties to honor the terms of the repurchase
agreement. Accordingly, the Funds could receive less than the repurchase price
on the sale of collateral securities.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date). Costs
used in determining realized gains and losses on the sale of investment
securities are those of the specific securities sold, adjusted for the accretion
and amortization of purchase discounts, and premiums during the respective
holding periods. Interest income is recorded on the accrual basis; dividend
income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment
income for the Investment Grade Bond Fund, the Tax-Free Investment Grade Bond
Fund, the Money Market Fund and the Tax-Free Money Market Fund are declared
daily and paid monthly. The Equity Fund and the Equity Income Fund declare and
pay dividends from net investment income quarterly. Any net realized capital
gains will be distributed at least annually for all Funds.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased upon settlement. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
APRIL 30, 2003 53
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
CLASSES -- Class specific expenses are borne by that class. Income, non-class
specific expenses, and realized/unrealized gains and losses are allocated to the
respective classes on the basis of the relative daily net assets.
(3) INVESTMENT ADVISORY, ADMINISTRATION, DISTRIBUTION AND SERVICE AGREEMENTS
INVESTMENT ADVISORY FEE -- Compass Asset Management, a division of Compass Bank,
the Advisor, receives for its services annual advisory fees equal to 0.75% of
each of the Equity and Equity Income Funds', 0.50% of each of the Investment
Grade Bond and Tax-Free Investment Grade Bond Funds' and 0.40% of each of the
Money Market and the Tax-Free Money Market Funds' average daily net assets. The
Advisor may voluntarily choose to waive any portion of its fee. The Advisor can
modify or terminate these voluntary waivers at any time at its sole discretion.
INVESTMENT SUB-ADVISOR -- Weiss, Peck & Greer, L.L.C. ("WPG") serves as the
Tax-Free Money Market Fund's investment sub-advisor under a sub-advisory
agreement (the "Sub-Advisory Agreement") with the Advisor. Under the
Sub-Advisory Agreement, WPG invests the assets of the Fund on a daily basis, and
continuously administers the investment program of the Fund.
WPG is entitled to a fee which is paid by the Advisor and which is calculated
daily and paid monthly, at an annual rate of: 0.075% of the Fund's average daily
net assets up to $150 million; 0.05% of the next $350 million of the Fund's
average daily net assets, 0.04% of the next $500 million of the Funds' average
daily net assets; and 0.03% of the Fund's average daily net assets over $1
billion.
ADMINISTRATIVE FEE -- The Trust and SEI Investments Global Funds Services (the
"Administrator"), a Delaware business trust, are parties to an administration
agreement (the "Agreement") dated June 9, 1997, under which the Administrator
provides the Trust with certain legal, accounting, and shareholder services for
an annual fee of 0.20% of the Funds' average daily net assets. The Administrator
may voluntarily waive its fee, subject to termination at any time by the
Administrator, to the extent necessary to limit the total operating expenses of
a Fund.
DISTRIBUTION FEES -- The Trust and SEI Investments Distribution Co. (the
"Distributor") are parties to a Distribution Agreement dated June 9, 1997. The
Equity, Equity Income, Investment Grade Bond, and Tax-Free Investment Grade Bond
Funds have adopted Distribution Plans for Investment Shares - Class A and
Investment Shares - Class B. Under the terms of each Plan the Funds pay the
Distributor a monthly distribution fee at an annual rate of 0.25% of the average
daily net assets of the Class A Shares and 1.00% of the average daily net assets
of Class B Shares, which may be used by the Distributor to provide compensation
for sales support and distribution activities.
54 APRIL 30, 2003
The Money Market and Tax-Free Money Market Funds have adopted and entered into a
Shareholder Service Plan and Agreement with the Distributor. Each Fund pays the
Distributor a monthly shareholder servicing fee at an annual rate of 0.25% of
the average daily net assets of each Fund's Investment Service Shares and Sweep
Class Shares, which may be used by the Distributor to provide compensation to
service providers that have agreed to provide certain shareholders support
services for their customers who own such Shares of the Funds.
ADMINISTRATIVE SERVICING FEES -- To the extent that investors buy Sweep Class
Shares through Compass Bank or any of its affiliates providing sub-accounting,
sub-transfer agency services or other administrative services, including Compass
Brokerage, Inc., those entities may receive administrative servicing fees,
payable from the Funds' assets, of up to 0.12% of each Fund's average daily net
assets attributable to Sweep Class Shares.
CUSTODIAN FEES-- Compass Bank serves as the Funds' custodian. Their fee is based
on a rate of 0.02% of each Fund's average daily net assets for the period, plus
out-of-pocket expenses.
(4) ORGANIZATION COSTS AND TRANSACTIONS
WITH AFFILIATES
Organization costs have been capitalized by the Tax-Free Money Market Fund and
are being amortized over sixty months commencing with the operations. In the
event that any of the initial shares of the Fund are redeemed by any holder
thereof during the period that the Fund is amortizing its organizational costs,
the redemption proceeds payable to the holder thereof by the Fund will be
reduced by the unamortized organizational costs in the same ratio as the number
of initial shares being redeemed bears to the number of initial shares
outstanding at the time of redemption.
Certain officers of the Trust are also officers of the Administrator and the
Distributor. Such officers are paid no fees by the Trust for serving as officers
of the Trust.
The Funds also used the Distributor as an agent in placing repurchase
agreements. For this service the Distributor retains a portion of the interest
earned as a commission. Such commissions for the period ended April 30, 2003
were as follows:
Equity Fund ....................................... $ 655
Equity Income Fund ................................ 176
Investment Grade Bond Fund ........................ 1,403
Money Market Fund ................................. 10,164
-------
$12,398
=======
Pursuant to an exemptive order issued by the Securities and Exchange Commission,
the Funds may invest in the Expedition Tax-Free Money Market Fund, provided that
investments in the Money Market Funds do not exceed 25% of the investing Fund's
total assets.
APRIL 30, 2003 55
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(5) CAPITAL SHARE TRANSACTIONS (000)
For the six months ended April 30, 2003 (unaudited)
and the year ended October 31, 2002
EXPEDITION EXPEDITION EXPEDITION
EQUITY EQUITY INCOME INVESTMENT GRADE
FUND FUND BOND FUND
------------------ ------------------ -------------------
Period Year Period Year Period Year
Ended Ended Ended Ended Ended Ended
04/30/03 10/31/02 04/30/03 10/31/02 04/30/03 10/31/02
-------- -------- -------- -------- -------- --------
Institutional Shares:
Shares issued 656 3,607 5 117 1,772 2,412
Shares issued in lieu of cash distributions 52 -- -- -- 132 326
Shares redeemed (6,802) (11,598) (328) (471) (1,625) (3,752)
------ ------- ---- ---- ------ ------
Increase (decrease) from
Institutional Shares transactions (6,094) (7,991) (323) (354) 279 (1,014)
------ ------- ---- ---- ------ ------
Investment Shares - Class A and
Investment Service Shares, respectively:
Shares issued 120 277 3 27 22 44
Shares issued in lieu of cash distributions 1 -- -- -- 8 18
Shares redeemed (102) (529) (8) (29) (20) (66)
------ ------- ---- ---- ------ ------
Increase (decrease) from Investment Shares -
Class A and Investment Service Shares
transactions, respectively 19 (252) (5) (2) 10 (4)
------ ------- ---- ---- ------ ------
Investment Shares - Class B and
Sweep Class Shares, respectively:
Shares issued 133 411 8 56 45 117
Shares issued in lieu of cash distributions -- -- -- -- 3 5
Shares redeemed (226) (529) (14) (46) (20) (44)
------ ------- ---- ---- ------ ------
Increase (decrease) from Investment Shares -
Class B and Sweep Class Shares
transactions, respectively (93) (118) (6) 10 28 78
------ ------- ---- ---- ------ ------
TOTAL INCREASE (DECREASE)
FROM SHARE TRANSACTIONS (6,168) (8,361) (334) (346) 317 (940)
====== ======= ==== ==== ====== ======
Amounts designated as "--" are either $0 or have been rounded to $0.
56 APRIL 30, 2003
EXPEDITION TAX-FREE EXPEDITION EXPEDITION
INVESTMENT GRADE MONEY MARKET TAX-FREE MONEY
BOND FUND FUND MARKET FUND
------------------- ------------------- ------------------
Period Year Period Year Period Year
Ended Ended Ended Ended Ended Ended
04/30/03 10/31/02 04/30/03 10/31/02 04/30/03 10/31/02
-------- -------- -------- -------- -------- --------
Institutional Shares:
Shares issued 674 576 434,804 781,592 127,340 203,523
Shares issued in lieu of cash distributions 87 31 56 149 -- --
Shares redeemed (648) (1,722) (396,993) (691,209) (140,227)(141,669)
---- ------ -------- -------- -------- --------
Increase (decrease) from
Institutional Shares transactions 113 (1,115) 37,867 90,532 (12,887) 61,854
---- ------ -------- -------- -------- --------
Investment Shares - Class A and
Investment Service Shares, respectively:
Shares issued 1 -- 332,976 721,789 140,284 166,273
Shares issued in lieu of cash distributions 2 3 137 398 2 12
Shares redeemed (47) (8) (363,209) (743,113) (121,021)(202,949)
---- ------ -------- -------- -------- --------
Increase (decrease) from Investment Shares -
Class A and Investment Service Shares
transactions, respectively (44) (5) (30,096) (20,926) 19,265 (36,664)
---- ------ -------- -------- -------- --------
Investment Shares - Class B and
Sweep Class Shares, respectively:
Shares issued 3 6 66,242 154,371 36,821 17,731
Shares issued in lieu of cash distributions 1 -- 152 575 11 33
Shares redeemed (1) (3) (72,100) (157,019) (18,873) (13,404)
---- ------ -------- -------- -------- --------
Increase (decrease) from Investment Shares -
Class B and Sweep Class Shares
transactions, respectively 3 3 (5,706) (2,073) 17,959 4,360
---- ------ -------- -------- -------- --------
TOTAL INCREASE (DECREASE)
FROM SHARE TRANSACTIONS 72 (1,117) 2,065 67,533 24,337 29,550
==== ====== ======== ======== ======== ========
APRIL 30, 2003 57
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six
months ended April 30, 2003, were as follows (000):
TAX-FREE
EQUITY INVESTMENT INVESTMENT
EQUITY INCOME GRADE BOND GRADE BOND
FUND FUND FUND FUND
------- ------ ---------- ----------
Purchases
U.S. Government $ -- $ -- $16,437 $ --
Other 52,065 9,345 -- 14,672
Sales
U.S. Government -- -- 7,777 --
Other 87,527 9,926 4,224 17,481
(7) FEDERAL TAX INFORMATION
It is each Fund's policy to continue to comply with the provisions of the
Internal Revenue Code of 1986 (Subchapter M), as amended (the "Code"),
applicable to regulated investment companies and to distribute to shareholders
each year substantially all of its income. Accordingly, no provisions for
Federal tax are necessary.
Dividends from net investment income and distributions from net realized capital
gains are determined in accordance with U.S. Federal income tax regulations.
Certain book/tax differences are either temporary or permanent in nature. To the
extent these differences are permanent, they are charged or credited to
paid-in-capital or accumulated net realized gain, as appropriate, in the period
that the differences arise.
For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains. At October 31, 2002, the Funds
had the following capital loss carryforwards (000):
TOTAL CAPITAL
EXPIRES EXPIRES EXPIRES EXPIRES LOSS CARRYFORWARD
2010 2009 2008 2007 10/31/02
------- ------- ------- ------- -----------------
Equity Fund ........ $33,297 $37,081 $ -- $-- $70,378
Equity Income Fund . 5,967 350 -- -- 6,317
Investment Grade
Bond Fund ....... -- -- 2,107 -- 2,107
Money Market Fund .. 21 -- -- -- 21
Tax-Free Money
Market Fund ..... 2 -- 1 7 10
58 APRIL 30, 2003
For Federal income tax purposes, the cost of securities owned at April 30, 2003,
and the net realized gains or losses on securities sold for the period were
different from amounts reported for financial reporting purposes, primarily due
to wash sales which cannot be used for Federal income tax purposes in the
current year and have been deferred for use in future years. The Federal tax
cost and aggregate gross unrealized appreciation and depreciation on
investments, held by the Funds at April 30, 2003 were as follows (000):
NET
UNREALIZED
FEDERAL APPRECIATED DEPRECIATED APPRECIATION
TAX COST SECURITIES SECURITIES (DEPRECIATION)
-------- ----------- ----------- --------------
Equity Fund ........ $177,127 $11,794 $(26,019) $(14,225)
Equity Income
Fund ............ 13,009 852 (917) (65)
Investment Grade
Bond Fund ....... 109,445 12,308 (2) 12,306
Tax-Free Investment
Grade Bond Fund . 71,611 4,798 (8) 4,790
APRIL 30, 2003 59
NOTES
[LOGO OMITTED]
EXPEDITION FUNDS
INVESTMENT ADVISOR
Compass Asset Management,
a division of Compass Bank
15 South 20th Street
Birmingham, Alabama 35233
DISTRIBUTOR:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
TRANSFER AGENT:
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
SERVICING AGENT:
Boston Financial Data Services, Inc.
Two Heritage Drive
Quincy, Massachusetts 02171
INDEPENDENT AUDITORS:
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281
COUNSEL:
Morgan, Lewis & Bockius LLP
1800 M Street, N.W.
Washington, D.C. 20036
EXP-SA-003-0300
ITEM 2. CODE OF ETHICS.
Not applicable - only effective for annual reports with periods ending on or
after July 15, 2003.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable - only effective for annual reports with periods ending on or
after July 15, 2003.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable - only effective for annual reports with periods ending on or
after December 15, 2003.
ITEMS 5-6. (RESERVED)
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. (RESERVED)
ITEM 9. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that material information relating to the
registrant, including its consolidated subsidiaries, is made known to them by
others within those entities, particularly during the period in which this
report is being prepared. Further, in their opinion, the registrant's disclosure
controls and procedures are adequately designed, and are operating effectively
to ensure, that information required to be disclosed by the registrant in the
reports it files or submits under the Securities Exchange Act of 1934 is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms.
(b) There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of our evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEMS 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act (17
CFR 270.30a-2) in the exact form set forth below: Attached hereto.
- --------------------------------------------------------------------------------
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.
(Registrant) Expedition Funds
By (Signature and Title)* \s\ James Foggo
---------------
James Foggo, President
Date 6/26/03
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* \s\ James Foggo
---------------
James Foggo, President
Date 6/26/03
By (Signature and Title)* \s\ Peter Golden
----------------
Peter Golden, Controller and CFO
Date 6/26/03
* Print the name and title of each signing officer under his or her signature.