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: OCTOBER 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
Expedition Funds GUIDING YOUR WAY
2003 Annual Report
[PHOTO OMITTED]
[LOGO] EXPEDITION FUNDS[R]
Table of Contents
Letter to Our Shareholders ............................ 1
Management's Discussion and Analysis .................. 4
Independent Auditors' Report .......................... 14
Statements of Net Assets .............................. 15
Statements of Operations .............................. 52
Statements of Changes in Net Assets ................... 55
Financial Highlights .................................. 58
Notes to Financial Statements ......................... 64
Trustees and Officers of the Trust .................... 74
Notice to Shareholders ................................ 82
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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.
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LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
After enduring two solid years of bear markets, it is with great pleasure that
we close out a fiscal year in which the bulls returned.
Following the tragic events of 2001 and uncertainties surrounding war with Iraq,
the stock market was due for a recovery. That recovery finally arrived in the
spring of 2003, as investors began moving cautiously back into stocks and out of
safe havens such as money market funds. In early summer, a series of encouraging
economic reports spurred even greater optimism. And as corporations began
reporting surprisingly strong profits for the quarter ending June 30, a genuine
rally was underway.
By the end of the fiscal year, there were double-digit gains for all the major
stock indices. And while rising deficits and ongoing problems in the Middle East
remain serious concerns, the markets are clearly anticipating better times
ahead.
CONSUMERS LEAD, BUSINESSES FOLLOW.
During this period of uncertainty, the real heroes of the American economy have
been consumers, who have maintained very healthy spending levels throughout even
the worst of the past two years. Their resolute confidence, fueled in part by a
recent tax cut, kept the economy from dipping into recession.
Businesses have less to be proud of, having virtually frozen investments in
capital equipment, technology, and personnel. The result was a vicious circle:
Businesses weren't spending money on other businesses, so corporate profits
suffered all around.
On the positive side, many corporations did use this period to reduce overhead
costs and streamline processes. As a result, when the recovery finally appeared,
its effects went almost directly to the bottom line. Over the past six months,
company after company has reported a dramatic increase in earnings, giving
investors plenty of reasons to cheer -- and to buy.
STOCKS OVERCOME UNCERTAINTY.
For the stock market, the early months of fiscal 2003 were dominated by fear of
war, and war itself. As the world held its collective breath, investors waited
on the sidelines to see whether the conflict would be as smooth as the
administration had promised. When it was even smoother, a large sigh of relief
was followed by cautious buying.
In the last two quarters, with peace proving more costly than war, investors
nonetheless were met with overwhelming evidence that the economy had turned a
corner, with profits in most sectors showing impressive strength. The result was
a return to real bullishness for the first time in two years.
Corporate scandals continued to make headlines, although none were of the
magnitude of the Enron and WorldCom debacles of the prior year. In addition, the
markets seemed to be genuinely reassured by measures such as the Sarbanes-Oxley
Act of 2002, which requires chief executives to take personal responsibility for
their companies' earnings reports.
OCTOBER 31, 2003 | 1
LETTER TO OUR SHAREHOLDERS (CONCLUDED)
A MIXED YEAR FOR BONDS.
The taxable bond market performed relatively well during the year, although the
previous year was a tough act to follow. Bonds enjoyed a bit more stimulus as
Federal Reserve Board cut rates just after the start of the fiscal year, and
again in June, 2003, bringing the discount rate down to an even one percent.
Thereafter, however, the strengthening economy obviated any need for the Fed to
do more.
The municipal bond market was less robust. Cutbacks in federal funding and weak
local economies led to outright fiscal crises in many states. And while there
were no actual defaults of any major issues, investors grew increasingly wary,
pushing down prices.
The money markets remained in limbo -- as in the dance that asks, "how low can
you go?" With yields now below the single-digit level, money markets were left
with only their relative stability to attract investors. In a year of turmoil,
that was often enough.
READY FOR THE RECOVERY.
It is gratifying to note that when the recovery appeared, the Expedition Funds
and its investors were in position to benefit from its substantial gains.
Our investor base and asset levels continued to grow during the past year, as
individuals and institutions recognized that opportunities were to be found in
the face of uncertainty.
Our fund managers also used this period wisely, taking advantage of undervalued
issues while maintaining their commitment to quality.
The results of this patient and prudent approach are evident in the performance
figures that appear in the pages ahead.
THE ONLY TREND THAT COUNTS.
With better times returning to the economy and the markets, it can be easy to
think they will always remain so. But history shows that bad years will always
be followed by good years, and vice versa. No short-term trend, however positive
or negative, is ever permanent.
Over time, however, the long-term trend is the same: Good companies grow,
high-quality bond issuers meet their commitments, and the American economy
continues to expand.
That is the trend that you invest in when you choose the Expedition Funds. And
that is the trend that we are privileged to pursue on your behalf.
We thank you for your continued confidence during this challenging, and
ultimately rewarding, period. And we look forward to helping you participate in
the markets for many years to come.
Sincerely,
/S/Denise A. Woodham
Denise A. Woodham
Managing Director of Investments
Compass Asset Management Group
2 | OCTOBER 31, 2003
INDEX DEFINITIONS
LEHMAN INTERMEDIATE GOVERNMENT/CREDIT INDEX -- A market value weighted
performance benchmark for government and Baa and higher rated corporate
fixed-rate debt issues with maturities between one and ten years.
LEHMAN MUNICIPAL BOND INDEX -- A broad-based total return index comprised of
8,000 investment grade, fixed rate, tax-exempt bonds with a remaining maturity
of at least one year, including state and local general obligation, revenue,
insured and pre-refunded bonds.
RUSSELL 1000 INDEX -- Measures the performance of the 1,000 largest companies in
the Russell 3000 Index which represents approximately 92% of total market
capitalization of the Russell 3000 Index.
S&P 400 MID-CAP INDEX -- This index is a capitalization-weighted index which
measures the performance of the mid-range of the U.S. Stock Market. This index
consists of 400 domestic stocks chosen for market size, liquidity and industry
group representation. It is a market value weighted index, with each stock
affecting the index in proportion to its market value.
S&P 500 COMPOSITE INDEX -- An unmanaged capitalization-weighted index of 500
stocks designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all major
industries.
S&P 500/BARRA VALUE INDEX -- This index is constructed by dividing the stocks of
the S&P 500 Composite Index according to price-to-book ratio. It contains firms
with lower price-to-book ratios. The index is capitalization-weighted, meaning
that each stock in the index is weighted in proportion to its market value.
OCTOBER 31, 2003 | 3
EXPEDITION EQUITY FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the twelve month period ended October 31, 2003, the Expedition Equity Fund
(Institutional Shares) generated a total return of 20.99%. This compares to a
20.80% return for the S&P 500 Composite Index and a 17.75% return for the Lipper
Large-Cap Core Funds Classification. The Fund seeks to provide growth of
capital, with a secondary objective of income and pursues these objectives by
investing in a diversified portfolio of common stocks issued by mid and large
capitalization companies.
The Expedition Equity Fund performed well in relation to its benchmark, actually
outperforming it. This strong performance came amid unexpected strength in both
the economy and the markets, particularly in the latter portion of the fiscal
year.
The effects of the strengthening economy were heightened by the fact that
corporations have tightened costs so successfully that even slight improvements
in demand translated to bottom-line profitability. For this reason, stocks of
cyclical companies and those whose businesses are tied to the overall economy
were among the best performers.
Looking ahead, we are concerned that the recent earnings momentum may have
reached its peak. The improving economy should still produce positive earnings,
but most likely at a declining rate of growth. Therefore, we anticipate
additional gains for stocks, but not of the magnitude of the past fiscal year.
4 | OCTOBER 31, 2003
EXPEDITION EQUITY FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
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EXPEDITION EQUITY FUND
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AVERAGE ANNUAL TOTAL RETURN
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1 Year 3 Year 5 Year 10 Year Inception to
Return Return Return* Return* Date*
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Institutional Shares 20.99% -15.45% -0.71% 7.67% 7.64%
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Investment Shares - Class A 20.72% -15.63% -0.99%** 7.54%** 7.51%**
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Investment Shares - Class A w/load 15.95% -16.77% -1.79%** 7.10%** 7.08%**
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Investment Shares - Class B 19.76% -16.30% -1.71%** 7.13%** 7.10%**
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Investment Shares - Class B w/load 14.76% -17.03% -1.85%** 7.13%** 7.10%**
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EXPEDITION
EQUITY FUND, INSTITUTIONAL SHARES, INVESTMENT SHARES-CLASS A AND INVESTMENT
SHARES-CLASS B, VERSUS THE RUSSELL 1000 INDEX, THE S&P 500 COMPOSITE INDEX, THE
S&P 400 MID-CAP INDEX, THE LIPPER GROWTH & INCOME FUNDS OBJECTIVE, AND THE
LIPPER LARGE-CAP CORE FUNDS CLASSIFICATION.
[GRAPH OMITTED]
EDGAR REPRESENTATION OF PLOT POINTS USED IN PRINTED GRAPH
EXPEDITION EQUITY FUND, EXPEDITION EQUITY FUND, EXPEDITION EQUITY FUND, RUSSELL 1000
INSTITUTIONAL SHARES INVESTMENT SHARES-CLASS A INVESTMENT SHARES-CLASS B INDEX
10/93 $10,000 $9,600 $10,000 $10,000
10/94 10,033 9,632 10,033 10,310
10/95 11,712 11,243 11,712 13,094
10/96 14,321 13,748 14,321 16,095
10/97 18,209 17,481 18,209 21,219
10/98 21,701 20,868 21,738 25,402
10/99 28,401 27,162 28,159 31,899
10/00 34,652 33,065 34,016 34,790
10/01 22,527 21,456 21,903 25,730
10/02 17,312 16,450 16,655 21,974
10/03 20,946 19,858 19,946 26,878
S&P 500 S&P 400 LIPPER GROWTH & LIPPER LARGE-CAP CORE
COMPOSITE INDEX MID-CAP INDEX INCOME FUNDS OBJECTIVE FUNDS CLASSIFICATION
10/93 $10,000 $10,000 $10,000 $10,000
10/94 10,386 10,236 10,269 10,272
10/95 13,132 12,407 12,410 12,590
10/96 16,297 14,560 15,154 15,232
10/97 21,530 19,313 19,508 19,520
10/98 26,264 20,607 21,507 22,448
10/99 33,006 24,949 25,329 28,174
10/00 35,016 32,846 27,935 30,867
10/01 26,297 28,757 23,348 22,567
10/02 22,324 27,382 20,091 18,819
10/03 26,967 35,796 24,228 22,159
* FOR PERIODS PRIOR TO THE INCEPTION OF THE EXPEDITION EQUITY FUND (THE
"FUND") ON JUNE 13, 1997, THE PERFORMANCE DATA QUOTED REPRESENTS PAST
PERFORMANCE OF THE EQUITY MODEL COMMON TRUST FUND INTERNALLY MANAGED BY AN
AFFILIATE OF THE FUND'S INVESTMENT ADVISOR, ADJUSTED FOR THE MAXIMUM FEE AND
EXPENSES OF THE INSTITUTIONAL SHARES OF THE FUND APPLICABLE AT THE INCEPTION
OF THE FUND. THE EQUITY MODEL COMMON TRUST FUND WAS NOT REGISTERED UNDER THE
INVESTMENT COMPANY ACT OF 1940 AND THEREFORE, WAS NOT SUBJECT TO CERTAIN
RESTRICTIONS WHICH MAY HAVE ADVERSELY AFFECTED PERFORMANCE.
** CLASS A SHARES OF THE FUND WERE OFFERED BEGINNING NOVEMBER 24, 1997 AND
CLASS B SHARES OF THE FUND WERE OFFERED BEGINNING NOVEMBER 16, 1998. THE
PERFORMANCE INFORMATION SHOWN PRIOR TO THAT REPRESENTS PERFORMANCE OF
INSTITUTIONAL SHARES. THE PRIOR INSTITUTIONAL SHARES PERFORMANCE HAS BEEN
ADJUSTED TO REFLECT THE MAXIMUM FRONT-END SALES CHARGES AND THE MAXIMUM
CONTINGENT DEFERRED SALES CHARGES APPLICABLE TO CLASS A AND CLASS B SHARES,
RESPECTIVELY, BUT DOES NOT REFLECT THE HIGHER RULE 12B-1 FEES FOR EITHER
CLASS. HAD THAT ADJUSTMENT BEEN MADE, PERFORMANCE WOULD HAVE BEEN LOWER.
NOTE: PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE
OF FUTURE PERFORMANCE. ACTUAL RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD
PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER.
OCTOBER 31, 2003 | 5
EXPEDITION EQUITY INCOME FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the twelve month period ended October 31, 2003, the Expedition Equity Income
Fund (Institutional Shares) generated a total return of 16.12%. This compares to
a 20.80% return for the S&P 500 Composite Index and a 20.75% return for the
Lipper Large-Cap Value Funds Classification for the comparable time period.
The Fund seeks to provide growth of capital, with a secondary objective of
income. These objectives are pursued through a diversified portfolio of common
stocks issued by mid and large-capitalization companies.
While it underperformed its benchmark, the Expedition Equity Income Fund
produced a very positive overall return. For investors, this return was enhanced
by recent legislation that lowered taxes on dividend income.
The Fund benefited from a strong stock market in the second half of the fiscal
year, as well as continued accommodative action - and frequent inaction - by the
Federal Reserve Board.
Strong sectors of the portfolio included industrial companies, financial
services providers, and transportation providers.
Looking ahead, we believe that income-oriented stocks will remain strong, thanks
to improving earnings and the increasing demand for dividends. Therefore, we
will continue to invest in high-quality issues that combine strong income and
the potential for long-term capital appreciation.
6 | OCTOBER 31, 2003
EXPEDITION EQUITY INCOME FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
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EXPEDITION EQUITY INCOME FUND
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AVERAGE ANNUAL TOTAL RETURN
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1 Year 3 Year Inception to
Return Return Date
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Institutional Shares 16.12% -12.75% -8.60%
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Investment Shares - Class A 15.84% -12.98% -8.33%
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Investment Shares - Class A w/load 11.21% -14.16% -9.35%
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Investment Shares - Class B 14.85% -13.60% -9.09%
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Investment Shares - Class B w/load 9.85% -14.42% -9.57%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EXPEDITION
EQUITY INCOME FUND, INSTITUTIONAL SHARES, INVESTMENT SHARES-CLASSA AND
INVESTMENT SHARES-CLASS B, VERSUS THE S&P 500 COMPOSITE INDEX, THE S&P 500/BARRA
VALUE INDEX, AND THE LIPPER LARGE-CAP VALUE FUNDS CLASSIFICATION, THE LIPPER
EQUITY INCOME CLASSIFICATION, AND THE LIPPER EQUITY INCOME OBJECTIVE
[GRAPH OMITTED]
EDGAR REPRESENTATION OF PLOT POINTS USED IN PRINTED GRAPH
EXPEDITION EQUITY INCOME FUND, EXPEDITION EQUITY INCOME FUND, EXPEDITION EQUITY INCOME FUND, S&P 500
INSTITUTIONAL SHARES INVESTMENT SHARES-CLASS A INVESTMENT SHARES-CLASS B COMPOSITE INDEX
10/93 $10,000 $9,600 $10,000 $10,000
10/00 10,350 9,918 10,302 9,600
10/01 7,556 7,221 7,453 7,210
10/02 5,920 5,642 5,786 6,120
10/03 6,874 6,536 6,520 7,393
S&P 500/BARRA LIPPER LARGE-CAP VALUE LIPPER EQUITY INCOME LIPPER EQUITY
VALUE INDEX FUNDS CLASSIFICATION CLASSIFICATION INCOME OBJECTIVE
10/93 $10,000 $10,000 $10,000 $10,000
10/00 10,609 10,697 10,736 10,624
10/01 8,656 9,453 9,743 9,474
10/02 7,290 8,101 8,612 8,320
10/03 9,100 9,782 10,321 9,947
NOTE: PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE
OF FUTURE PERFORMANCE. ACTUAL RETURN AND PRINCIPAL VALUE WILL FLUCTUATE,
AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD
PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER.
OCTOBER 31, 2003 | 7
EXPEDITION INVESTMENT GRADE BOND FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the twelve month period ended October 31, 2003, the Expedition Investment
Grade Bond Fund (Institutional Shares) generated a total return of 3.89%. This
compares to a 5.66% return for the Lipper Intermediate Investment-Grade Debt
Objective. The Fund seeks to provide income with relative stability of
principal.
While the bond market performed well overall, the lion's share of the gains took
place in the early half of the fiscal year, as the war in Iraq, economic
concerns, and a half-percent rate cut by the Federal Reserve Board led to a
continuation of the previous year's rally.
By mid-June, that tide turned sharply, as success in Iraq and an upturn in
economic sentiment caused yields to rise a full percentage point in just over
six weeks.
The Expedition Investment Grade Bond Fund was well positioned throughout the
year, holding high quality government and corporate issues with an average
maturity level below that of our benchmark.
Looking ahead, we believe that rates will continue to drive higher, as the U.S.
economy recovers. In light of this forecast, we plan to maintain a relatively
short maturity level in order to capture any incremental yield opportunities as
they become available. In addition, we will retain our focus on high-quality
corporate bonds, which offer strong relative returns backed by favorable
earnings trends.
8 | OCTOBER 31, 2003
EXPEDITION INVESTMENT GRADE BOND FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
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EXPEDITION INVESTMENT GRADE BOND FUND
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AVERAGE ANNUAL TOTAL RETURN
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1 Year 3 Year 5 Year 10 Year Inception
Return Return Return* Return* to Date*
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Institutional Shares 3.89% 8.49% 6.33% 5.82% 6.32%
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Investment Shares - Class A 3.63% 8.22% 6.04% 5.66% 6.18%
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Investment Shares - Class A w/load -0.53% 6.78% 5.19% 5.23% 5.81%
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Investment Shares - Class B 2.86% 7.45% 5.84% 5.56% 6.09%
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Investment Shares - Class B w/load -2.11% 6.58% 5.68% 5.56% 6.09%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EXPEDITION
INVESTMENT GRADE BOND FUND, INSTITUTIONAL SHARES, INVESTMENT SHARES-CLASS A AND
INVESTMENT SHARES-CLASS B, VERSUS THE LEHMAN INTERMEDIATE GOVERNMENT/CREDIT
INDEX, AND THE LIPPER INTERMEDIATE INVESTMENT- GRADE DEBT OBJECTIVE.
[GRAPH OMITTED]
EDGAR REPRESENTATION OF PLOT POINTS USED IN PRINTED GRAPH
Expedition Investment Grade Expedition Investment Grade Expedition Investment Grade
Bond Fund, Institutional Shares Bond Fund, Investment Shares-Class A Bond Fund, Investment Shares-Class B
10/93 $10,000 $ 9,600 $10,000
10/94 9,688 9,300 9,688
10/95 10,748 10,318 10,748
10/96 11,225 10,776 11,225
10/97 11,945 11,467 11,945
10/98 12,952 12,413 12,930
10/99 12,944 12,362 13,098
10/00 13,784 13,131 13,824
10/01 15,851 15,064 15,758
10/02 16,942 16,059 16,675
10/03 17,601 16,642 17,152
Lehman Intermediate Lipper Intermediate Investment-
Government/Credit Index Grade Debt Objective
10/93 $10,000 $10,000
10/94 9,807 9,564
10/95 11,035 10,954
10/96 11,677 11,541
10/97 12,552 12,516
10/98 13,694 13,526
10/99 13,829 13,533
10/00 14,720 14,356
10/01 16,819 16,301
10/02 17,813 16,905
10/03 18,777 17,862
* INSTITUTIONAL SHARES OF THE FUND WERE OFFERED BEGINNING JUNE 13, 1997 AND
CLASS B SHARES OF THE FUND WERE OFFERED BEGINNING NOVEMBER 16, 1998. THE
PERFORMANCE INFORMATION SHOWN PRIOR TO THAT REPRESENTS PERFORMANCE OF CLASS
A SHARES, WHICH WERE OFFERED BEGINNING APRIL 20, 1992. FOR INSTITUTIONAL
SHARES, THE PRIOR CLASS A SHARES PERFORMANCE REFLECTS THE MAXIMUM FRONT-END
SALES CHARGE AND RULE 12B-1 FEES ON CLASS A SHARES, NEITHER OF WHICH APPLIES
TO INSTITUTIONAL SHARES. FOR CLASS B SHARES, THE PRIOR CLASS A SHARES
PERFORMANCE REFLECTS THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE ON CLASS B
SHARES, BUT DOES NOT REFLECT CLASS B SHARES' HIGHER RULE 12B-1 FEES. HAD
THAT ADJUSTMENT BEEN MADE, PERFORMANCE WOULD HAVE BEEN LOWER.
NOTE: PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE
OF FUTURE PERFORMANCE. ACTUAL RETURN AND PRINCIPAL VALUE WILL FLUCTUATE,
AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD
PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER.
OCTOBER 31, 2003 | 9
EXPEDITION TAX-FREE INVESTMENT GRADE BOND FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the twelve month period ended October 31, 2003, the Expedition Tax-Free
Investment Grade Bond Fund (Institutional Shares) generated a total return of
4.57%. This compares to a 5.11% return for the Lehman Municipal Bond Index and a
4.29% return for the Lipper Intermediate Municipal Debt Funds Objective.
The Expedition Tax-Free Investment Grade Bond Fund performed well again during
the past year, taking advantage of the strong municipal market conditions that
prevailed - particularly in the first half of the year. Factors contributing to
the Fund's performance included downward pressure on interest rates by the
Federal Reserve Board and our continuing focus on quality issues.
Looking ahead, we believe that interest rates will remain relatively flat for
the next quarter or two, with the possibility of an upward trend thereafter as
the economy gains momentum. Therefore, we plan to keep our average maturity
level close to that of our benchmark, while retaining our emphasis on issues of
superior quality.
One area of concern is the recent budget deficit facing many states in the wake
of slow economies and reduced federal spending. We have thus far steered clear
of any problems related to this trend, through our strategy of emphasizing
issues of the highest quality. We plan to continue that strategy in the year
ahead.
10 | OCTOBER 31, 2003
EXPEDITION TAX-FREE INVESTMENT GRADE BOND FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
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EXPEDITION TAX-FREE INVESTMENT GRADE BOND FUND
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------------------------------------------------
1 Year 3 Year Inception to
Return Return Date
- -------------------------------------------------------------------------------
Institutional Shares 4.57% 6.51% 7.23%
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Investment Shares - Class A 4.40% 6.28% 6.83%
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Investment Shares - Class A w/load 0.21% 4.85% 5.64%
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Investment Shares - Class B 3.63% 5.46% 5.85%
- -------------------------------------------------------------------------------
Investment Shares - Class B w/load -1.34% 4.55% 5.32%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EXPEDITION
TAX-FREE INVESTMENT GRADE BOND FUND, INSTITUTIONAL SHARES AND INVESTMENT
SHARES-CLASS A, VERSUS THE LEHMAN MUNICIPAL BOND INDEX, THE LIPPER GENERAL
MUNICIPAL DEBT FUNDS OBJECTIVE, AND THE LIPPER INTERMEDIATE MUNICIPAL DEBT FUNDS
OBJECTIVE.
[GRAPH OMITTED]
EDGAR PRPRESENTATION OF PLOT POINTS USED IN PRINTED GRAPH
EXPEDITION TAX-FREE INVESTMENT GRADE EXPEDITION TAX-FREE INVESTMENT GRADE LEHMAN MUNICIPAL
BOND FUND, INSTITUTIONAL SHARES BOND FUND, INVESTMENT SHARES-CLASS A BOND INDEX
3/31/00 $10,000 $ 9,600 $10,000
10/00 10,462 10,019 10,510
10/01 11,459 10,947 11,616
10/02 12,089 11,520 12,297
10/03 12,642 12,027 12,926
LIPPER GENERAL MUNICIPAL LIPPER INTERMEDIATE MUNICIPAL
DEBT FUNDS OBJECTIVE DEBT FUNDS OBJECTIVE
3/31/00 $10,000 $10,000
10/00 10,445 10,402
10/01 11,450 11,363
10/02 11,928 11,915
10/03 12,480 12,426
NOTE: PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE
OF FUTURE PERFORMANCE. ACTUAL RETURN AND PRINCIPAL VALUE WILL FLUCTUATE,
AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE
RETURNS FOR CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN
EFFECT FOR THAT PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE
WOULD HAVE BEEN LOWER.
OCTOBER 31, 2003 | 11
EXPEDITION MONEY MARKET FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the twelve month period ended October 31, 2003, the Expedition Money Market
Fund (Institutional Shares) generated a total return of 0.88%. This compares to
a 0.71% return for the Lipper Money Market Mutual Funds Index.
Yields on money market instruments declined again in fiscal 2003, due to Federal
Reserve Board reductions totaling three-quarters of one percent. This led to a
historic period in which yields were consistently below one percent.
The Expedition Money Market Fund maintained its conservative strategy during the
year, keeping assets primarily in 30 to 60 day commercial paper and corporate
notes of six months to one year. The remainder of the Fund was invested in
overnight repurchase agreements.
Looking ahead, we believe that the Fed will respond to the improving economy by
holding rates steady, with a possible upward bias. Therefore, we plan to
continue with our relatively short-term strategy in hopes of improved yields in
the months to come.
12 | OCTOBER 31, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the twelve month period ended October 31, 2003, the Expedition Tax-Free
Money Market Fund (Institutional Shares) generated a total return of 0.79%. This
compares to a 0.63% return for the Lipper Tax-Exempt Money Market Funds Index.
The Fund seeks to provide income, exempt from Federal income taxes, consistent
with stability of principal. The Fund pursues this investment objective by
investing in high quality money market instruments maturing in 397 days or less.
Yields in the short-term municipal markets declined, as the Federal Reserve
Board pushed the discount rate to still more new lows during the fiscal year.
With a number of municipalities facing fiscal crunches, investors paid greater
attention to quality, pushing rates down even further on the best-quality
issues.
As a result, yields on the Expedition Tax-Free Money Market Fund remained
relatively modest, in line with those of the benchmark index.
Looking ahead, we plan to continue keeping maturity levels at the short end of
the spectrum in anticipation of potential rate increases. And, we will remain
vigilant with regard to quality, focusing on instruments that are well-supported
by dependable revenues and, where available, municipal bond insurance.
OCTOBER 31, 2003 13
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
Expedition Funds:
We have audited the accompanying statements of net assets of Expedition Funds
(the "Funds"), including the Equity Fund, Equity Income Fund, Investment Grade
Bond Fund, Tax-Free Investment Grade Bond Fund, Money Market Fund, and Tax-Free
Money Market Fund as of October 31, 2003, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2003, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds as of October 31, 2003, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles generally accepted
in the United States of America.
Deloitte & Touche LLP
New York, New York
December 19, 2003
14 | OCTOBER 31, 2003
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
- -----------------------------------------------------------------------------------
COMMON STOCK - 99.2%
AEROSPACE & DEFENSE - 3.6%
Boeing 70,000 $ 2,694
United Technologies 45,000 3,811
- -----------------------------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 6,505
- -----------------------------------------------------------------------------------
AIRLINES - 2.2%
Southwest Airlines 200,000 3,880
- -----------------------------------------------------------------------------------
TOTAL AIRLINES 3,880
- -----------------------------------------------------------------------------------
BANKS - 2.8%
Bank of America 25,000 1,893
JP Morgan Chase 90,000 3,231
- -----------------------------------------------------------------------------------
TOTAL BANKS 5,124
- -----------------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING - 6.7%
Comcast, Cl A* 120,000 4,070
Gannett 35,000 2,944
Omnicom Group 50,000 3,990
Viacom, Cl B 25,000 997
- -----------------------------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 12,001
- -----------------------------------------------------------------------------------
BROKER/DEALERS - 4.6%
Goldman Sachs Group 36,000 3,380
Morgan Stanley 90,000 4,938
- -----------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 8,318
- -----------------------------------------------------------------------------------
COMPUTERS & SERVICES - 9.1%
Cisco Systems* 250,000 5,245
Dell* 88,000 3,179
Intel 110,000 3,635
International Business Machines 48,000 4,295
- -----------------------------------------------------------------------------------
TOTAL COMPUTERS & SERVICES 16,354
- -----------------------------------------------------------------------------------
COSMETICS/TOILETRIES - 3.6%
Gillette 90,000 2,871
Procter & Gamble 36,000 3,538
- -----------------------------------------------------------------------------------
TOTAL COSMETICS/TOILETRIES 6,409
- -----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 3.9%
American Express 75,000 3,520
Citigroup 75,000 3,555
- -----------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 7,075
- -----------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING - 2.4%
General Electric 150,000 4,351
- -----------------------------------------------------------------------------------
TOTAL DIVERSIFIED MANUFACTURING 4,351
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 15
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
- -----------------------------------------------------------------------------------
ELECTRICAL SERVICES - 3.2%
Exelon 90,000 $ 5,711
- -----------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 5,711
- -----------------------------------------------------------------------------------
ENTERTAINMENT - 1.2%
Harrah's Entertainment 50,000 2,175
- -----------------------------------------------------------------------------------
TOTAL ENTERTAINMENT 2,175
- -----------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 5.6%
Anheuser-Busch 77,000 3,793
Constellation Brands, Cl A* 85,000 2,667
Sysco 105,000 3,534
- -----------------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 9,994
- -----------------------------------------------------------------------------------
INSURANCE - 8.8%
Allstate 75,000 2,963
American International Group 82,000 4,988
Lincoln National 95,000 3,793
Marsh & McLennan 95,000 4,061
- -----------------------------------------------------------------------------------
TOTAL INSURANCE 15,805
- -----------------------------------------------------------------------------------
MACHINERY - 2.0%
Caterpillar 50,000 3,664
- -----------------------------------------------------------------------------------
TOTAL MACHINERY 3,664
- -----------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES - 11.6%
Amgen* 60,000 3,706
Cardinal Health 30,000 1,780
CR Bard 40,000 3,202
Lincare Holdings* 50,000 1,947
Mylan Laboratories 100,000 2,415
St. Jude Medical* 70,000 4,071
UnitedHealth Group 75,000 3,816
- -----------------------------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 20,937
- -----------------------------------------------------------------------------------
METALS-ALUMINUM - 2.2%
Alcoa 125,000 3,946
- -----------------------------------------------------------------------------------
TOTAL METALS-ALUMINUM 3,946
- -----------------------------------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES - 1.1%
First Data 55,000 1,964
- -----------------------------------------------------------------------------------
TOTAL MISCELLANEOUS BUSINESS SERVICES 1,964
- -----------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS - 2.1%
International Paper 95,000 3,738
- -----------------------------------------------------------------------------------
TOTAL PAPER & PAPER PRODUCTS 3,738
- -----------------------------------------------------------------------------------
PETROLEUM REFINING - 6.1%
Apache Corporation 50,000 3,486
16 | OCTOBER 31, 2003
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
- -----------------------------------------------------------------------------------
Exxon Mobil 110,000 $ 4,024
Schlumberger 75,000 3,523
- -----------------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 11,033
- -----------------------------------------------------------------------------------
PHARMACEUTICALS - 2.7%
Merck 35,000 1,549
Pfizer 105,000 3,318
- -----------------------------------------------------------------------------------
TOTAL PHARMACEUTICALS 4,867
- -----------------------------------------------------------------------------------
RETAIL - 3.6%
Best Buy* 60,000 3,499
Staples* 110,000 2,950
- -----------------------------------------------------------------------------------
TOTAL RETAIL 6,449
- -----------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS - 1.9%
Applied Materials* 150,000 3,506
- -----------------------------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 3,506
- -----------------------------------------------------------------------------------
SOFTWARE & PROGRAMMING - 5.1%
Microsoft 125,000 3,269
Oracle* 175,000 2,093
Veritas Software* 105,000 3,796
- -----------------------------------------------------------------------------------
TOTAL SOFTWARE & PROGRAMMING 9,158
- -----------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 3.1%
Nokia ADR 75,000 1,274
SBC Communications 180,000 4,317
- -----------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 5,591
- -----------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $163,943) 178,555
- -----------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 1.8%
Expedition Money Market Fund+ 3,299,429 3,299
- -----------------------------------------------------------------------------------
TOTAL RELATED PARTY MONEY MARKET FUND
(COST $3,299) 3,299
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS - 101.0%
(COST $167,242) 181,854
- -----------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - (1.0)%
Investment Advisory Fees Payable (112)
Administrator Fees Payable (30)
Custodian Fees Payable (3)
Distribution Fees Payable (15)
Other Assets and Liabilities, Net (1,618)
- -----------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES (1,778)
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 17
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION (000)
- -----------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 21,122,001 outstanding shares of
beneficial interest $218,602
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 1,215,983 outstanding shares of
beneficial interest 14,731
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 2,135,973 outstanding shares of
beneficial interest 27,137
Undistributed net investment income 145
Accumulated net realized loss on investments (95,151)
Net unrealized appreciation on investments 14,612
- -----------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $180,076
- -----------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($156,142,145 / 21,122,001 SHARES) $7.39
- -----------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A
($8,910,118 / 1,215,983 SHARES) $7.33
- -----------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $7.64
- -----------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2)
($15,024,138 / 2,135,973 SHARES) $7.03
- -----------------------------------------------------------------------------------
<FN>
* Non-income producing security.
+ See Note 4 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.
ADR -- American Depository Receipt
Cl -- Class
</FN>
The accompanying notes are an integral part of the financial statements.
18 | OCTOBER 31, 2003
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
- -----------------------------------------------------------------------------------
COMMON STOCK - 99.6%
AEROSPACE & DEFENSE - 2.7%
General Dynamics 2,500 $ 209
Raytheon 6,000 159
- -----------------------------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 368
- -----------------------------------------------------------------------------------
AIR TRANSPORTATION - 2.3%
FedEx 4,000 303
- -----------------------------------------------------------------------------------
TOTAL AIR TRANSPORTATION 303
- -----------------------------------------------------------------------------------
BANKS - 16.3%
Bank of America 3,500 265
Bank of New York 10,000 312
BB&T 8,500 329
JP Morgan Chase 6,000 215
Keycorp 10,000 283
Union Planters 8,000 266
Wachovia 5,000 229
Wells Fargo 5,000 282
- -----------------------------------------------------------------------------------
TOTAL BANKS 2,181
- -----------------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING - 4.6%
Comcast, Cl A* 11,000 373
Viacom, Cl B 6,000 239
- -----------------------------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 612
- -----------------------------------------------------------------------------------
BROKER/DEALERS - 7.6%
Goldman Sachs Group 3,500 329
Merrill Lynch 6,000 355
Morgan Stanley 6,000 329
- -----------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 1,013
- -----------------------------------------------------------------------------------
CHEMICALS - 1.8%
EI Du Pont de Nemours 6,000 242
- -----------------------------------------------------------------------------------
TOTAL CHEMICALS 242
- -----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 5.3%
Citigroup 8,500 403
Concord* 8,000 85
Viad 9,000 225
- -----------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 713
- -----------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING - 5.0%
Fortune Brands 5,000 326
General Electric 12,000 348
- -----------------------------------------------------------------------------------
TOTAL DIVERSIFIED MANUFACTURING 674
- -----------------------------------------------------------------------------------
ELECTRICAL SERVICES - 6.7%
Centerpoint Energy 35,000 343
OCTOBER 31, 2003 | 19
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
- -----------------------------------------------------------------------------------
Exelon 4,500 $ 286
Southern 9,000 268
- -----------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 897
- -----------------------------------------------------------------------------------
ENTERTAINMENT - 1.9%
Harrah's Entertainment 6,000 261
- -----------------------------------------------------------------------------------
TOTAL ENTERTAINMENT 261
- -----------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 2.3%
Adolph Coors, Cl B 5,500 308
- -----------------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 308
- -----------------------------------------------------------------------------------
INSURANCE - 5.3%
ACE Ltd. 9,500 342
American International Group 6,000 365
- -----------------------------------------------------------------------------------
TOTAL INSURANCE 707
- -----------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES - 5.8%
Invitrogen* 7,000 445
Quest Diagnostics* 5,000 338
- -----------------------------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 783
- -----------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS - 2.0%
International Paper 7,000 275
- -----------------------------------------------------------------------------------
TOTAL PAPER & PAPER PRODUCTS 275
- -----------------------------------------------------------------------------------
PETROLEUM REFINING - 8.8%
Anadarko Petroleum 7,000 306
Exxon Mobil 13,000 476
Noble* 4,000 137
Royal Dutch Petroleum 6,000 266
- -----------------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 1,185
- -----------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 1.6%
Crescent Real Estate Equity 14,000 215
- -----------------------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUSTS 215
- -----------------------------------------------------------------------------------
RETAIL - 7.4%
CVS 10,000 352
Wal-Mart Stores 5,000 295
Yum! Brands* 10,000 341
- -----------------------------------------------------------------------------------
TOTAL RETAIL 988
- -----------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS - 3.8%
Applied Materials* 12,000 281
Novellus Systems* 5,500 227
- -----------------------------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 508
- -----------------------------------------------------------------------------------
SOFTWARE & PROGRAMMING - 2.9%
Intuit* 4,000 200
20 | OCTOBER 31, 2003
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
- -----------------------------------------------------------------------------------
Microsoft 7,000 $ 183
- -----------------------------------------------------------------------------------
TOTAL SOFTWARE & PROGRAMMING 383
- -----------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 5.5%
Alltel 2,000 95
BellSouth 6,000 158
Nokia ADR 11,000 187
SBC Communications 7,000 168
Verizon Communications 4,000 134
- -----------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 742
- -----------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $12,072) 13,358
- -----------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 0.3%
Expedition Money Market Fund+ 38,502 39
- -----------------------------------------------------------------------------------
TOTAL RELATED PARTY MONEY MARKET FUND
(COST $39) 39
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.9%
(COST $12,111) 13,397
- -----------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 0.1%
Investment Advisory Fees Receivable 2
Administrator Fees Payable (6)
Distribution Fees Payable (1)
Other Assets and Liabilities, Net 22
- -----------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES 17
- -----------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 1,867,663 outstanding shares of
beneficial interest 19,423
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 41,680 outstanding shares of
beneficial interest 508
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 108,789 outstanding shares of
beneficial interest 1,163
Accumulated net realized loss on investments (8,966)
Net unrealized appreciation on investments 1,286
- -----------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $13,414
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 21
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS
DESCRIPTION VALUE
- ------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($12,421,862 / 1,867,663 SHARES) $6.65
- ------------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A
($276,858 / 41,680 SHARES) $6.64
- ------------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $6.92
- ------------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2)
($715,585 / 108,789 SHARES) $6.58
- ------------------------------------------------------------------------------------
<FN>
* Non-income producing security.
+ See Note 4 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.
ADR -- American Depository Receipt
Cl -- Class
Ltd. -- Limited
</FN>
The accompanying notes are an integral part of the financial statements.
22 | OCTOBER 31, 2003
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 36.0%
BANKS - 5.7%
Bank of America
5.875%, 02/15/09 $1,000 $ 1,095
Bank One
6.000%, 08/01/08 2,000 2,194
Wachovia
4.950%, 11/01/06 2,000 2,122
Wells Fargo, Ser G, MTN
6.875%, 08/08/06 1,000 1,115
- -----------------------------------------------------------------------------------
TOTAL BANKS 6,526
- -----------------------------------------------------------------------------------
BROKER/DEALERS - 4.9%
Goldman Sachs Group
6.600%, 01/15/12 2,000 2,222
Merrill Lynch
6.375%, 10/15/08 1,000 1,121
Morgan Stanley
6.750%, 04/15/11 2,000 2,251
- -----------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 5,594
- -----------------------------------------------------------------------------------
CHEMICALS - 2.0%
EI Du Pont de Nemours
6.875%, 10/15/09 2,000 2,312
- -----------------------------------------------------------------------------------
TOTAL CHEMICALS 2,312
- -----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 10.7%
Citigroup
5.750%, 05/10/06 1,000 1,077
General Electric Capital, Ser A, MTN
7.375%, 01/19/10 3,000 3,506
6.800%, 11/01/05 2,000 2,180
General Motors Acceptance
6.150%, 04/05/07 2,000 2,113
Household Finance
6.375%, 10/15/11 1,000 1,095
Wells Fargo Financial
5.875%, 08/15/08 2,000 2,213
- -----------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 12,184
- -----------------------------------------------------------------------------------
ELECTRICAL SERVICES - 1.9%
Alabama Power, Ser G
5.375%, 10/01/08 2,000 2,142
- -----------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 2,142
- -----------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 0.1%
General Mills, MTN
8.080%, 11/18/03 60 60
- -----------------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 60
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 23
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
RETAIL - 7.9%
Lowe's
8.250%, 06/01/10 $2,000 $ 2,442
Target
5.875%, 11/01/08 2,000 2,190
4.000%, 06/15/13 1,000 934
Wal-Mart Stores
6.875%, 08/10/09 3,000 3,446
- -----------------------------------------------------------------------------------
TOTAL RETAIL 9,012
- -----------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 2.8%
SBC Communications
5.875%, 02/01/12 1,000 1,061
Verizon Wireless
5.375%, 12/15/06 2,000 2,138
- -----------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 3,199
- -----------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $36,798) 41,029
- -----------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 24.9%
FHLB
3.125%, 08/15/07 3,000 3,000
FHLB, Ser 100
5.800%, 09/02/08 2,000 2,203
FHLB, Ser 363
4.500%, 11/15/12 3,000 2,984
FHLMC
7.000%, 03/15/10 3,000 3,493
6.625%, 09/15/09 3,000 3,428
FNMA
7.250%, 01/15/10 2,500 2,943
5.500%, 03/15/11 3,000 3,226
5.250%, 01/15/09 3,000 3,221
4.375%, 03/15/13 4,000 3,909
- -----------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $26,515) 28,407
- -----------------------------------------------------------------------------------
24 | OCTOBER 31, 2003
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 24.7%
U.S. Treasury Notes
7.000%, 07/15/06 $2,500 $ 2,811
6.875%, 05/15/06 1,000 1,117
6.500%, 10/15/06 3,000 3,353
6.500%, 02/15/10 1,000 1,160
6.125%, 08/15/07 3,000 3,363
6.000%, 08/15/09 3,000 3,393
5.625%, 05/15/08 2,000 2,214
5.500%, 05/15/09 3,000 3,325
5.000%, 02/15/11 1,500 1,606
4.250%, 08/15/13 2,000 1,993
4.000%, 11/15/12 1,000 985
3.875%, 02/15/13 3,000 2,917
- -----------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $25,810) 28,237
- -----------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS - 8.5%
FHLMC, Gold Pool #E00532
6.500%, 02/01/13 215 226
FHLMC, Gold Pool #E00543
6.000%, 04/01/13 485 505
FHLMC, Gold Pool #E00584
6.000%, 11/01/13 703 733
FHLMC, Gold Pool #E00832
7.500%, 04/01/15 299 319
FHLMC, Gold Pool #E00856
7.500%, 06/01/15 290 309
FNMA, Pool # 614934
6.000%, 12/01/16 2,085 2,170
FNMA, Pool #535966
7.000%, 05/01/16 733 779
GNMA, Pool #552999
5.000%, 01/15/18 4,586 4,684
- -----------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(COST $9,572) 9,725
- -----------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 4.7%
MBNA Master Credit Card Trust, Ser 1999-J, Cl A
7.000%, 02/15/12 3,000 3,460
Standard Credit Card Master Trust, Ser 1994-2, Cl A
7.250%, 04/07/08 1,725 1,924
- -----------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $4,864) 5,384
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 25
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
- -----------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 0.2%
Expedition Money Market Fund+ 196,466 $ 196
- -----------------------------------------------------------------------------------
TOTAL RELATED PARTY MONEY MARKET FUND
(COST $196) 196
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.0%
(COST $103,755) 112,978
- -----------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 1.0%
Investment Advisory Fees Payable (39)
Administrator Fees Payable (20)
Custodian Fees Payable (2)
Distribution Fees Payable (3)
Other Assets and Liabilities, Net 1,260
- -----------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES 1,196
- -----------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 9,967,477 outstanding shares of
beneficial interest 95,001
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 505,803 outstanding shares of
beneficial interest 9,287
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 198,316 outstanding shares of
beneficial interest 2,054
Accumulated net realized loss on investments (1,391)
Net unrealized appreciation on investments 9,223
- -----------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $114,174
- -----------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($106,643,396 / 9,967,477 SHARES) $10.70
- -----------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A
($5,406,585 / 505,803 SHARES) $10.69
- -----------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $11.14
- -----------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2)
($2,124,106 / 198,316 SHARES) $10.71
- -----------------------------------------------------------------------------------
26 | OCTOBER 31, 2003
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS
DESCRIPTION
- --------------------------------------------------------------------------------
+ See Note 4 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.
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.
OCTOBER 31, 2003 | 27
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
MUNICIPAL BONDS - 96.6%
ALABAMA - 10.8%
Alabama State, Municipal Electric Authority,
Power Supply RB, Ser A, MBIA
5.000%, 09/01/33 $1,000 $ 1,005
Alabama State, Public School & College Authority,
Capital Improvements RB, Ser D
5.750%, 08/01/19 1,150 1,278
Birmingham, Capital Improvement Warrants GO, Ser A
5.550%, 08/01/21 1,000 1,080
Huntsville, Warrants GO, Ser D
5.000%, 11/01/07 1,000 1,107
Montgomery, Warrants GO, Ser A
5.100%, 10/01/09 1,000 1,102
Phoenix City, School Warrants GO, AMBAC
5.650%, 08/01/21 1,000 1,087
Tuscaloosa, Warrants
5.650%, 01/01/17 1,000 1,111
- -----------------------------------------------------------------------------------
TOTAL ALABAMA 7,770
- -----------------------------------------------------------------------------------
ARIZONA - 1.7%
Tucson GO, Ser 1994-D
6.250%, 07/01/14 1,000 1,203
- -----------------------------------------------------------------------------------
TOTAL ARIZONA 1,203
- -----------------------------------------------------------------------------------
CALIFORNIA - 9.7%
California State GO, FGIC
5.250%, 09/01/30 1,280 1,307
Los Angeles School District GO, Ser 1997-E, MBIA
5.125%, 01/01/27 1,000 1,024
San Diego School District GO, Ser 1998-D, FGIC
5.250%, 07/01/24 1,000 1,043
San Gabriel School District GO, Ser A, FSA
5.375%, 08/01/21 500 531
Southern California,
Metropolitan Water District RB, Ser A
5.100%, 07/01/25 1,000 1,013
University of California,
Multiple Purpose Projects RB,
Ser M, FGIC
5.125%, 09/01/22 1,000 1,040
5.125%, 09/01/23 1,000 1,024
- -----------------------------------------------------------------------------------
TOTAL CALIFORNIA 6,982
- -----------------------------------------------------------------------------------
COLORADO - 4.4%
Denver, City and County GO, Ser B
5.625%, 08/01/07 1,000 1,126
Denver, City and County School District GO, FGIC
5.000%, 12/01/23 1,000 1,016
28 | OCTOBER 31, 2003
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
La Plata County School District GO, MBIA
5.250%, 11/01/25 $1,000 $ 1,036
- -----------------------------------------------------------------------------------
TOTAL COLORADO 3,178
- -----------------------------------------------------------------------------------
FLORIDA - 3.8%
Florida State, Board of Education Capital Outlay GO,
Ser A, Pre-Refunded @ 101 (A)
5.650%, 01/01/05 500 530
Florida State, Department of Transportation GO,
Right of Way Project, Ser B
5.500%, 07/01/11 1,000 1,103
Palm Beach County GO, Ser A
5.450%, 08/01/13 1,000 1,096
- -----------------------------------------------------------------------------------
TOTAL FLORIDA 2,729
- -----------------------------------------------------------------------------------
GEORGIA - 1.6%
Georgia State GO, Ser B
6.000%, 03/01/12 1,000 1,173
- -----------------------------------------------------------------------------------
TOTAL GEORGIA 1,173
- -----------------------------------------------------------------------------------
HAWAII - 1.6%
Hawaii State GO, Ser CO, FGIC
6.000%, 03/01/08 1,000 1,147
- -----------------------------------------------------------------------------------
TOTAL HAWAII 1,147
- -----------------------------------------------------------------------------------
ILLINOIS - 1.8%
Chicago, Project & Refunding GO, Ser C, FGIC
5.500%, 01/01/19 1,180 1,286
- -----------------------------------------------------------------------------------
TOTAL ILLINOIS 1,286
- -----------------------------------------------------------------------------------
KANSAS - 1.5%
Kansas State, Department of Transportation RB, Ser A
5.000%, 09/01/06 1,000 1,090
- -----------------------------------------------------------------------------------
TOTAL KANSAS 1,090
- -----------------------------------------------------------------------------------
MASSACHUSETTS - 3.3%
Massachusetts State, Consolidated Loan GO,
Ser A Pre-Refunded @ 101 (A)
6.000%, 02/01/10 2,000 2,366
- -----------------------------------------------------------------------------------
TOTAL MASSACHUSETTS 2,366
- -----------------------------------------------------------------------------------
MICHIGAN - 2.0%
Novi Michigan Street GO, FSA
5.250%, 10/01/15 1,280 1,418
- -----------------------------------------------------------------------------------
TOTAL MICHIGAN 1,418
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 29
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
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 $ 528
- -----------------------------------------------------------------------------------
TOTAL MINNESOTA 528
- -----------------------------------------------------------------------------------
NEVADA - 1.6%
Clark County GO
6.000%, 07/01/06 1,000 1,109
- -----------------------------------------------------------------------------------
TOTAL NEVADA 1,109
- -----------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.5%
New Hampshire RB, MBIA
5.250%, 08/15/19 1,000 1,079
- -----------------------------------------------------------------------------------
TOTAL NEW HAMPSHIRE 1,079
- -----------------------------------------------------------------------------------
NEW JERSEY - 1.6%
New Jersey State, GO, Ser F
5.500%, 08/01/11 1,000 1,142
- -----------------------------------------------------------------------------------
TOTAL NEW JERSEY 1,142
- -----------------------------------------------------------------------------------
NEW MEXICO - 0.8%
New Mexico State, Severance Tax RB, Ser B, FSA
5.000%, 07/01/07 500 550
- -----------------------------------------------------------------------------------
TOTAL NEW MEXICO 550
- -----------------------------------------------------------------------------------
NEW YORK - 8.4%
Brookhaven GO, FGIC
5.500%, 10/01/13 500 556
New York City GO, Ser C, MBIA
5.375%, 11/15/17 1,000 1,088
New York City Transitional Authority RB, Ser C, FGIC
5.250%, 08/01/14 1,000 1,099
New York State GO, Ser A, Pre-Refunded @ 101 (A)
5.875%, 03/15/05 1,000 1,073
New York State GO, Ser F
5.250%, 09/15/13 500 544
New York State, Environmental Water Facilities RB,
Pooled Financing Program, Ser F
5.250%, 11/15/20 500 533
Triborough, Bridge & Tunnel Authority RB,
Ser A, Pre-Refunded @ 100.5 (A)
5.250%, 07/01/09 1,000 1,146
- -----------------------------------------------------------------------------------
TOTAL NEW YORK 6,039
- -----------------------------------------------------------------------------------
NORTH CAROLINA - 6.8%
Charlotte RB, Ser C
5.000%, 04/01/09 1,000 1,117
Charlotte, Water & Sewer Systems RB
5.125%, 06/01/26 1,000 1,020
30 | OCTOBER 31, 2003
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
North Carolina State, GO, Ser A,
Pre-Refunded @ 102 (A)
4.700%, 02/01/04 $1,000 $ 1,029
Winston-Salem, Water & Sewer Systems RB,
Pre-Refunded @ 101 (A)
5.250%, 06/01/11 1,500 1,716
- -----------------------------------------------------------------------------------
TOTAL NORTH CAROLINA 4,882
- -----------------------------------------------------------------------------------
OHIO - 2.3%
Ohio State, Building Authority RB,
State Facilities Adult
Correctional Facilities, Ser A, FSA
5.500%, 10/01/13 1,000 1,127
Pickerinston, Local School District GO, FGIC
5.250%, 12/01/20 500 528
- -----------------------------------------------------------------------------------
TOTAL OHIO 1,655
- -----------------------------------------------------------------------------------
OREGON - 1.4%
Oregon State, Alternative Energy Project GO, Ser E
5.800%, 07/01/07 1,000 1,027
- -----------------------------------------------------------------------------------
TOTAL OREGON 1,027
- -----------------------------------------------------------------------------------
PENNSYLVANIA - 1.5%
Pennsylvania State, Intergovernmental Authority ST,
Philadelphia Funding Project, FGIC
5.250%, 06/15/15 1,000 1,083
- -----------------------------------------------------------------------------------
TOTAL PENNSYLVANIA 1,083
- -----------------------------------------------------------------------------------
SOUTH CAROLINA - 4.9%
Greenville County, School District RB
6.000%, 12/01/21 1,000 1,113
Lancaster County, School District GO, FSA
5.100%, 03/01/15 1,000 1,078
Lexington County, School District GO
5.125%, 03/01/21 1,210 1,280
- -----------------------------------------------------------------------------------
TOTAL SOUTH CAROLINA 3,471
- -----------------------------------------------------------------------------------
TEXAS - 11.1%
Canyon, Independent School District GO, Ser A, PSF
5.375%, 02/15/24 1,000 1,042
Frisco, Independent School District GO, PSF
5.125%, 08/15/30 1,000 1,013
Grand Prairie, Independent School District GO, FSA
5.375%, 02/15/18 1,820 1,973
Lamar, Consolidated Independent
School District GO, PSF
5.500%, 02/15/15 500 549
Leander, Independent School District GO, PSF
5.375%, 08/15/19 1,000 1,067
OCTOBER 31, 2003 | 31
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE AMT. VALUE
DESCRIPTION (000)/SHARES (000)
- -----------------------------------------------------------------------------------
Mesquite, Independent School District GO, PSF
5.500%, 08/15/21 $1,160 $ 1,245
Williamson County GO, FSA
5.250%, 02/15/27 1,040 1,067
- -----------------------------------------------------------------------------------
TOTAL TEXAS 7,956
- -----------------------------------------------------------------------------------
UTAH - 1.6%
Utah State, Intermountain Power Agency RB,
Ser B, MBIA, ETM
6.000%, 07/01/06 1,000 1,115
- -----------------------------------------------------------------------------------
TOTAL UTAH 1,115
- -----------------------------------------------------------------------------------
VIRGINIA - 5.4%
Bristol Utility System RB, MBIA
5.250%, 07/15/26 1,850 1,919
Newport News GO, Ser A, MBIA, Pre-Refunded @ 102 (A)
5.625%, 07/01/05 795 868
Virginia, Commonwealth Transportation Board RB,
Northern Virginia Transportation Program, Ser A
5.500%, 05/15/15 1,000 1,113
- -----------------------------------------------------------------------------------
TOTAL VIRGINIA 3,900
- -----------------------------------------------------------------------------------
WASHINGTON - 1.6%
Washington State, GO, Ser B
6.000%, 01/01/13 1,000 1,156
- -----------------------------------------------------------------------------------
TOTAL WASHINGTON 1,156
- -----------------------------------------------------------------------------------
WEST VIRGINIA - 1.6%
West Virginia State, GO, State Road Project, FGIC
5.625%, 06/01/18 1,000 1,106
- -----------------------------------------------------------------------------------
TOTAL WEST VIRGINIA 1,106
- -----------------------------------------------------------------------------------
WISCONSIN - 1.6%
Milwaukee GO, Ser T, Pre-Refunded @ 100 (A)
5.250%, 09/01/11 1,000 1,133
- -----------------------------------------------------------------------------------
TOTAL WISCONSIN 1,133
- -----------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $65,494) 69,273
- -----------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 2.4%
Expedition Tax-Free Money Market Fund+ 1,759,391 1,759
- -----------------------------------------------------------------------------------
TOTAL RELATED PARTY MONEY MARKET FUND
(COST $1,759) 1,759
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.0%
(COST $67,253) 71,032
- -----------------------------------------------------------------------------------
32 | OCTOBER 31, 2003
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION (000)
- ------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 1.0%
Investment Advisory Fees Payable $ (22)
Administrator Fees Payable (12)
Custodian Fees Payable (1)
Other Assets and Liabilities, Net 739
- ------------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES 704
- ------------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 6,525,285 outstanding shares of
beneficial interest 66,044
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 27,963 outstanding shares of
beneficial interest 258
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 20,159 outstanding shares of
beneficial interest 214
Undistributed net investment income 17
Accumulated net realized gain on investments 1,424
Net unrealized appreciation on investments 3,779
- ------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $71,736
- ------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($71,211,142 / 6,525,285 SHARES) $10.91
- ------------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A
($305,100 / 27,963 SHARES) $10.91
- ------------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $11.36
- ------------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2)
($219,898 / 20,159 SHARES) $10.91
- ------------------------------------------------------------------------------------
<FN>
+ See Note 4 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
</FN>
The accompanying notes are an integral part of the financial statements.
OCTOBER 31, 2003 | 33
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
COMMERCIAL PAPER - 74.2%
AIRCRAFT - 3.4%
General Dynamics
1.010%, 11/14/03 $ 7,000 $ 6,997
1.020%, 11/24/03 8,000 7,995
1.020%, 12/03/03 6,000 5,995
- -----------------------------------------------------------------------------------
TOTAL AIRCRAFT 20,987
- -----------------------------------------------------------------------------------
BANKS - 5.7%
Bank One
1.040%, 12/22/03 10,000 9,985
Deutsche Bank
1.020%, 11/12/03 5,000 4,998
Wells Fargo
1.030%, 11/14/03 10,000 9,996
1.000%, 12/09/03 10,000 9,990
- -----------------------------------------------------------------------------------
TOTAL BANKS 34,969
- -----------------------------------------------------------------------------------
BROKER/DEALERS - 1.5%
Bear Stearns
1.060%, 12/01/03 4,000 3,997
Merrill Lynch
1.010%, 11/06/03 5,000 4,999
- -----------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 8,996
- -----------------------------------------------------------------------------------
BUILDING & CONSTRUCTION - 3.6%
Guardian
1.060%, 11/03/03 7,100 7,100
1.050%, 12/18/03 15,000 14,979
- -----------------------------------------------------------------------------------
TOTAL BUILDING & CONSTRUCTION 22,079
- -----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 25.4%
American General Finance
1.050%, 11/20/03 12,000 11,993
1.035%, 12/08/03 15,000 14,984
Caterpillar Financial Services
1.020%, 11/10/03 10,000 9,997
1.030%, 11/17/03 5,000 4,998
1.020%, 12/18/03 6,841 6,832
General Electric Capital
1.060%, 11/04/03 10,000 9,999
1.050%, 11/06/03 9,685 9,684
1.040%, 11/13/03 5,000 4,998
1.040%, 11/17/03 9,000 8,996
1.050%, 11/21/03 8,000 7,995
1.020%, 12/02/03 5,000 4,996
1.060%, 12/16/03 7,800 7,790
34 | OCTOBER 31, 2003
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
Toyota Motor Credit
1.030%, 11/05/03 $10,000 $ 9,999
1.030%, 11/18/03 5,000 4,998
1.030%, 11/20/03 5,000 4,997
1.020%, 12/05/03 3,000 2,997
1.020%, 12/16/03 5,000 4,994
Transamerica Finance
1.050%, 11/05/03 5,000 4,999
1.040%, 11/07/03 4,000 3,999
1.050%, 11/10/03 4,000 3,999
1.050%, 11/18/03 6,000 5,997
1.050%, 11/24/03 2,000 1,999
1.040%, 12/05/03 5,000 4,995
- -----------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 157,235
- -----------------------------------------------------------------------------------
FUNDING CORPORATIONS - 13.6%
Falcon Asset Securitization
1.040%, 11/03/03 5,000 5,000
1.050%, 11/07/03 10,000 9,998
1.050%, 11/21/03 4,000 3,998
1.050%, 11/26/03 5,000 4,996
1.050%, 12/03/03 4,000 3,996
Preferred Receivable Funding
1.050%, 11/14/03 5,000 4,998
1.060%, 11/20/03 5,000 4,997
1.060%, 11/21/03 6,000 5,997
1.050%, 11/24/03 12,000 11,992
Receivables Capital
1.050%, 11/04/03 10,000 9,999
1.060%, 11/10/03 5,000 4,999
1.050%, 11/18/03 3,000 2,999
1.040%, 11/20/03 3,000 2,998
1.050%, 11/21/03 5,000 4,997
1.050%, 12/01/03 1,980 1,978
- -----------------------------------------------------------------------------------
TOTAL FUNDING CORPORATIONS 83,942
- -----------------------------------------------------------------------------------
LEASING & RENTING - 4.4%
International Lease Finance
1.030%, 11/12/03 10,000 9,997
1.050%, 11/18/03 7,000 6,997
1.020%, 12/03/03 5,000 4,995
1.030%, 12/04/03 5,000 4,995
- -----------------------------------------------------------------------------------
TOTAL LEASING & RENTING 26,984
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 35
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
MULTIMEDIA - 4.0%
Gannett
1.010%, 11/06/03 $10,000 $ 9,998
1.010%, 11/10/03 5,000 4,999
1.000%, 11/13/03 10,000 9,997
- -----------------------------------------------------------------------------------
TOTAL MULTIMEDIA 24,994
- -----------------------------------------------------------------------------------
PHARMACEUTICALS - 4.2%
Pfizer
1.020%, 11/07/03 6,000 5,999
1.020%, 11/26/03 15,000 14,989
1.040%, 01/06/04 5,000 4,991
- -----------------------------------------------------------------------------------
TOTAL PHARMACEUTICALS 25,979
- -----------------------------------------------------------------------------------
SPECIAL PURPOSE ENTITY - 4.4%
Three Pillars
1.060%, 11/05/03 6,000 5,999
1.050%, 11/17/03 6,500 6,497
1.060%, 11/26/03 5,000 4,997
1.050%, 12/01/03 10,000 9,991
- -----------------------------------------------------------------------------------
TOTAL SPECIAL PURPOSE ENTITY 27,484
- -----------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 1.6%
BellSouth
1.010%, 11/13/03 5,000 4,998
Verizon
1.000%, 11/04/03 5,000 5,000
- -----------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 9,998
- -----------------------------------------------------------------------------------
UTILITIES - 2.4%
National Rural Utilities
1.050%, 11/19/03 15,000 14,992
- -----------------------------------------------------------------------------------
TOTAL UTILITIES 14,992
- -----------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(COST $458,639) 458,639
- -----------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 17.2%
BANKS - 3.7%
Bank of America
5.750%, 03/01/04 4,100 4,161
6.625%, 06/15/04 8,600 8,881
6.125%, 07/15/04 1,228 1,271
Bank One, Ser A, MTN
5.625%, 02/17/04 1,137 1,150
Wachovia
6.625%, 06/15/04 2,898 2,994
36 | OCTOBER 31, 2003
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
Wells Fargo
6.625%, 07/15/04 $ 4,500 $ 4,666
- -----------------------------------------------------------------------------------
TOTAL BANKS 23,123
- -----------------------------------------------------------------------------------
BROKER/DEALERS - 7.6%
Bear Stearns
6.625%, 01/15/04 6,850 6,922
6.150%, 03/02/04 11,827 12,013
8.750%, 03/15/04 2,405 2,471
6.625%, 10/01/04 2,199 2,305
Lehman Brothers
6.625%, 04/01/04 3,155 3,226
Merrill Lynch, Ser B, MTN
6.800%, 11/03/03 1,715 1,715
6.070%, 04/06/04 2,280 2,327
5.350%, 06/15/04 4,450 4,564
Morgan Stanley
6.375%, 12/15/03 2,000 2,012
5.625%, 01/20/04 9,512 9,598
- -----------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 47,153
- -----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 3.1%
Associates Corporation of North America
5.750%, 11/01/03 7,000 7,000
5.500%, 02/15/04 1,000 1,012
5.800%, 04/20/04 4,500 4,589
Associates Corporation of North America, Ser F, MTN
6.440%, 01/15/04 1,625 1,642
Caterpillar Financial, Ser F, MTN
7.700%, 11/05/03 1,045 1,046
7.960%, 01/26/04 1,000 1,016
Citigroup
5.700%, 02/06/04 1,500 1,517
Wells Fargo Financial
5.450%, 05/03/04 1,000 1,021
- -----------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 18,843
- -----------------------------------------------------------------------------------
ELECTRICAL SERVICES - 1.8%
Alabama Power, Ser I
5.350%, 11/15/03 6,350 6,359
Alabama Power, Ser N
4.875%, 09/01/04 4,785 4,921
- -----------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 11,280
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 37
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
SHARES/FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
UTILITIES - 1.0%
National Rural Utilities
6.000%, 01/15/04 $ 6,215 $ 6,273
- -----------------------------------------------------------------------------------
TOTAL UTILITIES 6,273
- -----------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $106,672) 106,672
- -----------------------------------------------------------------------------------
U.S. AGENCY OBLIGATIONS - 3.7%
FNMA (A)
1.020%, 11/03/03 6,000 6,000
1.040%, 11/12/03 10,000 9,997
1.040%, 11/19/03 7,000 6,996
- -----------------------------------------------------------------------------------
TOTAL U.S. AGENCY OBLIGATIONS
(COST $22,993) 22,993
- -----------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 3.9%
JP Morgan Chase
0.93% dated 10/31/03, matures
11/03/03, repurchase price $24,093,867
(collateralized by U.S. Treasury obligations,
total market value $24,574,195) 24,092 24,092
- -----------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $24,092) 24,092
- -----------------------------------------------------------------------------------
MONEY MARKET FUND - 0.8%
Financial Square Government Money Market Fund 5,014,267 5,014
- -----------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(COST $5,014) 5,014
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.8%
(COST $617,410) 617,410
- -----------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 0.2%
Investment Advisory Fees Payable (101)
Administrator Fees Payable (79)
Custodian Fees Payable (11)
Distribution Fees Payable (84)
Other Assets and Liabilities, Net 1,422
- -----------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES 1,147
- -----------------------------------------------------------------------------------
38 | OCTOBER 31, 2003
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION (000)
- -----------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 251,207,315 outstanding shares of
beneficial interest $251,206
Portfolio Capital of Investment Service Shares
(unlimited authorization -- no par value)
based on 313,851,432 outstanding shares of
beneficial interest 313,850
Portfolio Capital of Investment Sweep Class Shares
(unlimited authorization -- no par value)
based on 53,499,557 outstanding shares of
beneficial interest 53,498
Undistributed net investment income 2
Accumulated net realized gain on investments 1
- -----------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $618,557
- -----------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($251,212,439 / 251,207,315 SHARES) $1.00
- -----------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SERVICE SHARES
($313,845,198 / 313,851,432 SHARES) $1.00
- -----------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
SWEEP CLASS SHARES
($53,499,741 / 53,499,557 SHARES) $1.00
- -----------------------------------------------------------------------------------
<FN>
(A) The rate reflected on the Statement of Net Assets represents the security's
effective yield at time of purchase.
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
Ser -- Series
</FN>
The accompanying notes are an integral part of the financial statements.
OCTOBER 31, 2003 | 39
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
MUNICIPAL BONDS - 99.8%
ALABAMA - 1.7%
Huntsville, Health Care Authority RB,
Ser B, MBIA (A) (B)
6.625%, 06/01/23 $2,000 $ 2,103
Montgomery County,
Special Care Financing Authority RB,
VHA Alabama Incorporated Project,
Ser H, AMBAC (A) (B)
1.050%, 12/01/30 1,200 1,200
- -----------------------------------------------------------------------------------
TOTAL ALABAMA 3,303
- -----------------------------------------------------------------------------------
ARIZONA - 0.3%
Apache County, Industrial Development Authority RB,
Tucson Electrical Power -
Springerville Project (A) (B) (C)
1.100%, 12/01/20 600 600
- -----------------------------------------------------------------------------------
TOTAL ARIZONA 600
- -----------------------------------------------------------------------------------
ARKANSAS - 2.8%
Crossett, Pollution Control Revenue Authority RB,
Pacific Corporation Project (A) (B) (C)
1.050%, 08/01/04 5,500 5,500
- -----------------------------------------------------------------------------------
TOTAL ARKANSAS 5,500
- -----------------------------------------------------------------------------------
CALIFORNIA - 2.6%
California Warrants, Ser A
2.000%, 06/16/04 4,500 4,525
Newport Beach, Revenue Authority RB,
Hoag Memorial Hospital, Ser C (A) (B)
1.200%, 10/01/26 500 500
- -----------------------------------------------------------------------------------
TOTAL CALIFORNIA 5,025
- -----------------------------------------------------------------------------------
COLORADO - 2.5%
Castle Pines, North Metropolitan District Authority
GO (A) (B) (C)
1.130%, 12/01/28 1,000 1,000
Denver City & County,
Multi-Family Housing Authority RB,
Cottonwood Creek Project, Ser A (A) (B)
1.050%, 04/15/14 1,000 1,000
SBC Metropolitan District GO (A) (B) (C)
1.070%, 12/01/17 2,000 2,000
Thornton, Colorado, Multifamily Revenue RB,
Quail Ridge Project, Ser A (A) (B) (C)
1.050%, 04/01/10 900 900
- -----------------------------------------------------------------------------------
TOTAL COLORADO 4,900
- -----------------------------------------------------------------------------------
40 | OCTOBER 31, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
CONNECTICUT - 0.5%
New Britain, BAN
2.250%, 04/08/04 $1,005 $ 1,010
- -----------------------------------------------------------------------------------
TOTAL CONNECTICUT 1,010
- -----------------------------------------------------------------------------------
DELAWARE - 3.6%
Delaware State, Economic Development Authority RB,
School House Project (A) (B) (C)
1.050%, 12/01/15 750 750
University of Delaware RB, Ser A (A) (B)
1.050%, 11/01/18 6,300 6,300
- -----------------------------------------------------------------------------------
TOTAL DELAWARE 7,050
- -----------------------------------------------------------------------------------
FLORIDA - 1.7%
Miami-Dade County, Industrial Development Authority RB,
Holy Cross Academy Project (A) (B) (C)
1.050%, 07/01/20 800 800
Orange County, Industrial Development Authority RB,
Orlando Hawaiian Motel (A) (B) (C)
1.300%, 10/01/15 690 690
Palm Beach County, Economic Development Authority RB,
YMCA Boynton Beach Project (A) (B) (C)
1.050%, 01/01/24 1,700 1,700
- -----------------------------------------------------------------------------------
TOTAL FLORIDA 3,190
- -----------------------------------------------------------------------------------
GEORGIA - 6.9%
Dalton Georgia, Utilities Authority RB,
Ser A02, FSA (A) (B)
1.140%, 01/01/12 2,090 2,090
Dekalb County, Development Authority RB,
American Cancer
Society (A) (B) (C)
1.050%, 09/01/17 1,200 1,200
Dekalb County, Multi-Family Housing Authority RB,
Winters Creek Apartments Project, FNMA (A) (B)
1.050%, 06/15/25 400 400
Dekalb County, Multi-Family Housing Authority RB,
Woodhills Apartment Project (A) (B) (C)
1.100%, 12/01/07 1,600 1,600
Fulton County, Multi-Family Housing Authority RB,
Champions Green Apartment Project, Ser B (A) (B)
1.050%, 10/01/25 4,300 4,300
Fulton County, Multi-Family Housing Authority RB,
Hampton Hills Apartment Project, FHLMC (A) (B)
1.050%, 06/01/23 600 600
Macon-Bibb County, Hospital Authority RB,
Medical Control Center Project (A) (B) (C)
1.050%, 12/01/18 1,700 1,700
Private Colleges & Universities Authority RB,
Mercer University Project (A) (B) (C)
1.130%, 10/01/32 1,400 1,400
OCTOBER 31, 2003 | 41
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
Thomasville, Hospital Authority RB,
Anticipation Certificates -
J.D. Archbold Project (A) (B) (C)
1.050%, 11/01/17 $ 100 $ 100
- -----------------------------------------------------------------------------------
TOTAL GEORGIA 13,390
- -----------------------------------------------------------------------------------
ILLINOIS - 6.8%
Central Lake RB, Merlots - Ser B18, AMBAC (A) (B)
1.140%, 05/01/20 900 900
Cook County GO, Merlots - Ser B11, AMBAC (A) (B)
1.140%, 11/15/25 500 500
East Peoria, Multi-Family Housing RB (A) (B) (C)
1.200%, 06/01/08 405 405
Illinois State, Development Finance Authority RB,
Goodman Theater Project (A) (B) (C)
1.100%, 12/01/33 1,750 1,750
Illinois State, Development Finance Authority RB,
WBEZ Alliance Incorporated Project (A) (B) (C)
1.050%, 03/01/29 1,800 1,800
Illinois State, Development Finance Authority RB,
YMCA Chicago Project (A) (B) (C)
1.120%, 06/01/29 2,400 2,400
Illinois State, Educational Facilities RB,
Field Museum of Natural History (A) (B) (C)
1.050%, 11/01/32 1,500 1,500
Kane Cook & Du Page Counties TAW
2.250%, 11/28/03 1,000 1,000
Oakbrook Terrace, Industrial Development Authority RB,
Oakbrook Terrace Atrium Project (A) (B) (C)
1.050%, 12/01/25 2,000 2,000
Orland Park, Industrial Development Authority RB,
Ser A (A) (B) (C)
1.350%, 12/28/04 825 825
- -----------------------------------------------------------------------------------
TOTAL ILLINOIS 13,080
- -----------------------------------------------------------------------------------
INDIANA - 5.8%
Avon, Community School Warrants
1.950%, 12/31/03 1,000 1,001
Hamilton Southeastern Schools, BAN
1.250%, 04/01/04 1,000 1,000
Indiana State, Development Finance Authority RB,
Cathedral High School Project (A) (B) (C)
1.200%, 09/01/26 1,000 1,000
Indiana State, Educational Facilities Authority RB,
Evansville University Project, Ser B (A) (B) (C)
1.200%, 12/01/29 2,000 2,000
Indiana State,
Health Facilities Financing Authority RB,
Capital Access Project (A) (B) (C)
1.050%, 04/01/13 1,500 1,500
42 | OCTOBER 31, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
Knox Community, School Corporate Industry, TAW
1.750%, 12/31/03 $1,000 $ 1,000
Merrillville School District Authority, TAW
1.250%, 12/31/03 1,000 1,000
Spencer Owen Independent Community Schools GO (A) (B)
1.500%, 12/31/03 1,650 1,651
Tippecanoe, TAN
2.000%, 12/30/03 1,100 1,101
- -----------------------------------------------------------------------------------
TOTAL INDIANA 11,253
- -----------------------------------------------------------------------------------
IOWA - 3.6%
Iowa State, Finance Authority RB,
Drake University Project (A) (B) (C)
1.200%, 07/01/31 600 600
Iowa State, Higher Education Loan Authority RB,
Private College Facilities,
Loras Project (A) (B) (C)
1.150%, 11/01/30 2,400 2,400
Iowa State, Higher Education Loan Authority RB,
Private College, Des Moines Project (A) (B) (C)
1.200%, 10/01/33 1,200 1,200
Iowa State, Higher Education Loan Authority RB,
Private College, St. Ambrose Project (A) (B) (C)
1.150%, 04/01/33 2,700 2,700
- -----------------------------------------------------------------------------------
TOTAL IOWA 6,900
- -----------------------------------------------------------------------------------
KANSAS - 2.1%
Kansas Finance Authority RB, Kansas Department
Administration, Ser J1 (A) (B)
1.150%, 12/01/18 1,800 1,800
Prairie Village RB, Corinth Place Apartments (A) (B)
1.050%, 11/01/30 2,350 2,350
- -----------------------------------------------------------------------------------
TOTAL KANSAS 4,150
- -----------------------------------------------------------------------------------
KENTUCKY - 2.9%
Kentucky State,
Rural Water Financial Corporation RB (A) (B)
2.250%, 11/01/03 1,000 1,000
Kentucky State, TRAN
2.000%, 06/30/04 2,500 2,518
Lexington-Fayette Urban County,
Government Industrial Building Authority RB,
American Horse Shows Association
Project (A) (B) (C)
1.200%, 12/01/18 2,025 2,025
- -----------------------------------------------------------------------------------
TOTAL KENTUCKY 5,543
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 43
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
LOUISIANA - 1.6%
East Baton Rouge RB, Parish Pollution Control
Authority, Rhone-Poulenc Project (A) (B) (C)
1.200%, 06/01/11 $ 800 $ 800
1.200%, 12/01/11 1,230 1,230
Louisiana State,
Public Facilities Authority Hospital RB,
St. Francis Medical Center Project, FSA (A) (B)
5.300%, 07/01/09 1,000 1,048
- -----------------------------------------------------------------------------------
TOTAL LOUISIANA 3,078
- -----------------------------------------------------------------------------------
MASSACHUSETTS - 2.3%
Massachusetts State, Development Finance Agency RB,
Marino Foundation Project (A) (B) (C)
1.050%, 07/01/21 2,100 2,100
Massachusetts State,
Health and Educational Facilities Authority
RB, Falmouth Assisted Living, Ser A (A) (B) (C)
1.030%, 11/01/26 2,300 2,300
- -----------------------------------------------------------------------------------
TOTAL MASSACHUSETTS 4,400
- -----------------------------------------------------------------------------------
MICHIGAN - 5.4%
Farmington Hills Michigan Hospital Finance
Authority RB,
Botsford General Hospital, Ser B, MBIA (A) (B)
1.200%, 02/15/16 1,650 1,650
Jackson County, Economic Development Authority RB,
Thrifty Leoni Project (A) (B) (C)
1.060%, 12/01/14 1,000 1,000
Michigan State, Job Development Authority RB,
East Lansing Residential Project (A) (B) (C)
0.950%, 12/01/14 900 900
Michigan State, Strategic Fund RB,
Van Andel Research Institution Project (A) (B) (C)
1.050%, 11/01/27 3,400 3,400
Northern University RB, FGIC (A) (B)
1.150%, 06/01/31 1,600 1,600
Pinckney Community Schools,
State Aid Anticipation Notes
1.500%, 08/20/04 2,000 2,005
- -----------------------------------------------------------------------------------
TOTAL MICHIGAN 10,555
- -----------------------------------------------------------------------------------
44 | OCTOBER 31, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
MINNESOTA - 2.8%
Mankato, Revenue Authority RB,
Bethany Lutheran College Project,
Ser B, (A) (B) (C)
1.200%, 11/01/15 $1,740 $ 1,740
Minneapolis & St. Paul, Housing & Redevelopment
Authority
RB, Childrens Healthcare System Project,
Ser B, FSA (A) (B)
1.150%, 08/15/25 2,800 2,800
Minnesota State,
Higher Education Facilities Authority RB,
St. Olaf College Project (A) (B) (C)
1.150%, 10/01/20 800 800
- -----------------------------------------------------------------------------------
TOTAL MINNESOTA 5,340
- -----------------------------------------------------------------------------------
MISSOURI - 5.0%
Clayton, Industrial Development Authority RB,
Bailey Court Project (A) (B) (C)
1.200%, 01/01/09 500 500
Kansas City, Industrial Development Authority RB,
Bethesda Living Center Project, Ser A (A) (B) (C)
1.100%, 08/01/31 2,200 2,200
Kansas City, Industrial Development Authority RB,
Ewing Marion Kaufman (A) (B)
1.150%, 04/01/27 3,100 3,100
Missouri State,
Health & Educational Facilities Authority RB,
Saint Louis University Project, Ser B (A) (B)
1.200%, 10/01/24 600 600
Missouri State, Health & Educational Facilities RN
1.150%, 10/29/04 945 945
Missouri State, State Office Buildings RB,
Ser B (A) (B)
4.000%, 12/01/03 1,500 1,503
Saint Louis, Industrial Development Authority RB,
Schnuck Markets Kirkwood Project (A) (B) (C)
1.100%, 12/01/15 900 900
- -----------------------------------------------------------------------------------
TOTAL MISSOURI 9,748
- -----------------------------------------------------------------------------------
MONTANA - 0.8%
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
- -----------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.5%
Coos County, TAN
1.625%, 12/31/03 1,000 1,000
- -----------------------------------------------------------------------------------
TOTAL NEW HAMPSHIRE 1,000
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 45
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
NEW YORK - 3.0%
New York City, Municipal Water Finance RB,
Ser C-1 (A) (B)
1.160%, 06/15/18 $4,600 $ 4,600
New York City, Municipal Water Finance RB,
Ser F-1 (A) (B)
1.160%, 06/15/33 1,300 1,300
- -----------------------------------------------------------------------------------
TOTAL NEW YORK 5,900
- -----------------------------------------------------------------------------------
NORTH CAROLINA - 0.6%
North Carolina Medical Care Community RB,
Carolina Meadows Income Project (A) (B) (C)
1.150%, 06/01/28 1,200 1,200
- -----------------------------------------------------------------------------------
TOTAL NORTH CAROLINA 1,200
- -----------------------------------------------------------------------------------
OHIO - 4.4%
American Municipal Power BAN
1.900%, 11/06/03 400 400
1.600%, 12/04/03 670 670
1.300%, 08/05/04 750 750
American Municipal Power BAN, Hubbard Project
1.450%, 12/19/03 420 420
American Municipal Power BAN, Oberlin Project
1.600%, 12/11/03 650 651
American Municipal Power BAN, St. Mary's Project
1.200%, 10/07/04 830 830
Brook Park BAN
1.600%, 01/07/04 700 700
Clermont County, Economic Development Authority RB,
John Q. Hammons Project (A) (B) (C)
1.400%, 05/01/12 680 680
Ohio State, Higher Education Facilities RB,
Kenyon College Project (A) (B)
1.100%, 08/01/33 150 150
Ohio State, Higher Education Facilities RB,
Ser A (A) (B) (C)
1.100%, 09/01/24 2,000 2,000
Toledo Lucas County, Port Facilities Authority RB,
Toledo Museum of Art Project (A) (B) (C)
1.040%, 09/01/19 1,200 1,200
- -----------------------------------------------------------------------------------
TOTAL OHIO 8,451
- -----------------------------------------------------------------------------------
OKLAHOMA - 1.0%
Tulsa, Industrial Development Authority RB,
Tulsa County Housing Fund Project (A) (B)
1.250%, 10/01/32 2,000 2,000
- -----------------------------------------------------------------------------------
TOTAL OKLAHOMA 2,000
- -----------------------------------------------------------------------------------
46 | OCTOBER 31, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
OREGON - 1.9%
Portland Economic Development RB, Broadway Project,
Ser A, AMBAC (A) (B) (C)
1.090%, 04/01/35 $3,750 $ 3,750
- -----------------------------------------------------------------------------------
TOTAL OREGON 3,750
- -----------------------------------------------------------------------------------
PENNSYLVANIA - 10.6%
Allegheny County RB, Industrial Development Authority,
Jewish Home & Hospital Project, Ser B (A) (B) (C)
1.100%, 10/01/26 1,240 1,240
Delaware County Industrial Development Authority RB,
British Petroleum Project (A) (B)
1.120%, 10/01/19 1,500 1,500
Erie County Hospital Authority RB, Ser 820,
MBIA (A) (B)
1.110%, 07/01/22 3,000 3,000
Lawrence County Industrial Development Authority RB,
Villa Maria Project (A) (B) (C)
1.090%, 07/01/33 2,600 2,600
Montgomery County RB, Kingswood Apartments Project,
Ser A, FNMA (A) (B)
1.000%, 08/15/31 1,000 1,000
Pennsylvania State, Economic Development Financing
Authority RB, Philadelphia Area Project,
Ser J3 (A) (B) (C)
1.100%, 11/01/30 4,200 4,200
Pennsylvania State, Higher Education Association
Independent Colleges RB, Ser I1 (A) (B) (C)
1.100%, 11/01/31 3,000 3,000
Pennsylvania State, Higher Educational Facility RB,
CICU Funding Program, Ser B7 (A) (B) (C)
1.100%, 11/01/23 1,300 1,300
Philadelphia Authority for Industrial
Development RB (A) (B)
1.450%, 05/01/17 500 500
Philadelphia RB, School for the Deaf
Project (A) (B) (C)
1.100%, 11/01/32 1,000 1,000
Philadelphia, Hospital & Higher Education Facilities
Authority RB, Temple East Project,
Ser B (A) (B) (C)
1.100%, 06/01/14 300 300
Temple University, Commonwealth of Higher Education RN
1.200%, 05/04/04 1,000 1,000
- -----------------------------------------------------------------------------------
TOTAL PENNSYLVANIA 20,640
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 47
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
TENNESSEE - 1.3%
Chattanooga, Health Education and Facilities Board RB,
McCallie School Project (A) (B) (C)
1.050%, 12/01/23 $1,400 $ 1,400
Wilson County, Industrial Development Board RB,
Hartmann Luggage Co. Project (A) (B)
1.220%, 07/01/26 1,100 1,100
- -----------------------------------------------------------------------------------
TOTAL TENNESSEE 2,500
- -----------------------------------------------------------------------------------
TEXAS - 2.1%
Texas State, TRAN
2.000%, 08/31/04 4,000 4,028
- -----------------------------------------------------------------------------------
TOTAL TEXAS 4,028
- -----------------------------------------------------------------------------------
VERMONT - 0.8%
Vermont State, Educational & Health Buildings Financing
Authority RB, Capital Asset Financing Program,
Ser 1 (A) (B) (C)
1.150%, 06/01/22 1,500 1,500
- -----------------------------------------------------------------------------------
TOTAL VERMONT 1,500
- -----------------------------------------------------------------------------------
WASHINGTON - 4.3%
Seattle, Low Income Housing Authority RB,
Foss Home Project (A) (B) (C)
1.050%, 12/01/24 345 345
Washington State, GO, Ser A11, MBIA (A) (B)
1.140%, 06/01/17 1,400 1,400
Washington State, Housing Finance Commission
Non-Profit RB, Pioneer Human Services Project,
Ser A (A) (B) (C)
1.150%, 08/01/19 1,250 1,250
Washington State, Housing Finance Commission
Non-Profit RB, Rockwood Retirement
Community (A) (B) (C)
1.150%, 01/01/34 1,000 1,000
Washington State, Housing Finance
Commission Non-Profit RB, Rockwood Retirement
Community, Ser A (A) (B) (C)
1.150%, 01/01/30 3,600 3,600
Washington State, Housing Finance Commission
Non-Profit RB, Tacoma Art Museum
Project (A) (B) (C)
1.200%, 06/01/32 100 100
Washington State, Housing Finance Commission
Non-Profit RB, Vincent DePaul Project,
Ser A, (A) (B) (C)
1.050%, 02/01/30 500 500
Washington State, Housing Finance Commission
Non-Profit RB, YMCA Columbia/Willamette
Project (A) (B) (C)
1.150%, 08/01/24 100 100
- -----------------------------------------------------------------------------------
TOTAL WASHINGTON 8,295
- -----------------------------------------------------------------------------------
48 | OCTOBER 31, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
WEST VIRGINIA - 0.6%
Putnam County, Industrial Development RB,
FMC Corporation Project (A) (B) (C)
1.000%, 10/01/11 $1,200 $ 1,200
- -----------------------------------------------------------------------------------
TOTAL WEST VIRGINIA 1,200
- -----------------------------------------------------------------------------------
WISCONSIN - 6.0%
Chippewa Falls BAN
2.000%, 11/01/03 1,075 1,075
Milwaukee RB, Montessori Society School
Project (A) (B) (C)
1.250%, 07/01/21 100 100
West Salem School District, TRAN
1.750%, 09/01/04 1,400 1,407
Wisconsin State, Health & Educational Facilities
Authority RB, Alverno College Project (A) (B) (C)
1.200%, 11/01/17 100 100
Wisconsin State, Health & Educational Facilities
Authority RB, Gundersen Lutheran Project,
Ser A, FSA (A) (B)
1.150%, 12/01/15 5,300 5,300
Wisconsin State, Health & Educational Facilities
Authority RB, Mercy Health Systems Project,
Ser C (A) (B) (C)
1.100%, 08/15/23 2,600 2,600
Wisconsin State, Health & Educational Facilities
Authority RB, Oakwood Village East Lutheran
Homes Project,
Ser B (A) (B) (C)
1.100%, 08/15/30 1,000 1,000
- -----------------------------------------------------------------------------------
TOTAL WISCONSIN 11,582
- -----------------------------------------------------------------------------------
WYOMING - 0.5%
Campbell County, TAN
1.500%, 12/22/03 1,000 1,000
- -----------------------------------------------------------------------------------
TOTAL WYOMING 1,000
- -----------------------------------------------------------------------------------
MULTI-STATE - 0.5%
Greystone, Municipal Lease Certificate Trust
Authority COP, Ser A (A) (B) (C)
1.220%, 07/01/05 460 460
Greystone, Tax Exempt Certificate Trust Authority RB,
Senior Certificate of Beneficial Ownership
Project (A) (B) (C)
1.220%, 05/01/28 505 505
- -----------------------------------------------------------------------------------
TOTAL MULTI-STATE 965
- -----------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $193,526) 193,526
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.8%
(COST $193,526) 193,526
- -----------------------------------------------------------------------------------
OCTOBER 31, 2003 | 49
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -----------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 0.2%
Investment Advisory Fees Payable $ (20)
Administrator Fees Payable (24)
Custodian Fees Payable (3)
Distribution Fees Payable (26)
Other Assets and Liabilities, Net 462
- -----------------------------------------------------------------------------------
TOTAL OTHER ASSETS & LIABILITIES 389
- -----------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 84,122,634 outstanding shares of
beneficial interest 84,122
Portfolio Capital of Investment Service Shares
(unlimited authorization -- no par value)
based on 87,069,195 outstanding shares of
beneficial interest 87,070
Portfolio Capital of Sweep Class Shares
(unlimited authorization -- no par value)
based on 22,736,594 outstanding shares of
beneficial interest 22,736
Accumulated net realized loss on investments (13)
- -----------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $193,915
- -----------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($84,116,108 / 84,122,634 SHARES) $1.00
- -----------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SERVICE SHARES
($87,062,230 / 87,069,195 SHARES) $1.00
- -----------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
SWEEP CLASS SHARES
($22,736,234 / 22,736,594 SHARES) $1.00
- -----------------------------------------------------------------------------------
50 | OCTOBER 31, 2003
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
(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 Corporation
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Association
RN -- Revenue Notes
GO -- General Obligation
RB -- Revenue Bond
Ser -- Series
TAN -- Tax Anticipation Notes
TAW -- Tax Anticipation Warrants
TRAN -- Tax & Revenue Anticipation Notes
VHA -- Veteran's Hospital Association
The accompanying notes are an integral part of the financial statements.
OCTOBER 31, 2003 | 51
STATEMENTS OF OPERATIONS (000)
For the year ended October 31, 2003
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND
---------- -------------
INVESTMENT INCOME:
Dividends $ 2,859 $ 255
Interest 26 5
------- ------
Total investment income 2,885 260
------- ------
EXPENSES:
Investment advisory fees 1,283 100
Administrator fees 342 75
Custodian fees 34 3
Distribution fees --
Investment Shares - Class A 19 1
Investment Shares - Class B 136 7
Transfer agent fees 283 97
Professional fees 29 17
Printing fees 15 1
Registration fees 15 1
Trustees' fees 5 --
Other fees 14 2
------- ------
Total expenses 2,175 304
------- ------
Less:
Waiver of investment advisory fees -- (100)
Reimbursement of investment
advisory fees -- (30)
------- ------
Net expenses 2,175 174
------- ------
NET INVESTMENT INCOME 710 86
------- ------
Net realized loss on investments (22,249) (2,349)
Net change in unrealized appreciation
of investments 53,720 4,184
------- ------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 31,471 1,835
------- ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $32,181 $1,921
======= ======
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
52 | OCTOBER 31, 2003
STATEMENTS OF OPERATIONS (000)
For the year ended October 31, 2003
EXPEDITION EXPEDITION
INVESTMENT TAX-FREE INVESTMENT
GRADE BOND GRADE BOND
FUND FUND
---------- ------------------
INVESTMENT INCOME:
Interest $6,259 $3,276
------ ------
Total investment income 6,259 3,276
------ ------
EXPENSES:
Investment advisory fees 599 378
Administrator fees 240 151
Custodian fees 24 15
Distribution fees --
Investment Shares - Class A 14 1
Investment Shares - Class B 21 3
Transfer agent fees 144 89
Professional fees 26 22
Printing fees 12 8
Registration fees 12 7
Trustees' fees 3 2
Other fees 11 14
------ ------
Total expenses 1,106 690
------ ------
Less:
Waiver of investment advisory fees (112) (82)
------ ------
Net expenses 994 608
------ ------
NET INVESTMENT INCOME 5,265 2,668
------ ------
Net realized gain on investments 776 1,425
Net change in unrealized depreciation
of investments (1,476) (711)
------ ------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (700) 714
------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $4,565 $3,382
====== ======
The accompanying notes are an integral part of the financial statements.
OCTOBER 31, 2003 | 53
STATEMENTS OF OPERATIONS (000)
For the year ended October 31, 2003
EXPEDITION
EXPEDITION TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
------------ ------------
INVESTMENT INCOME:
Interest $ 8,152 $2,528
------- ------
Total investment income 8,152 2,528
------- ------
EXPENSES:
Investment advisory fees 2,483 830
Administrator fees 931 311
Shareholder Servicing Fees --
Investment Service Shares 828 240
Sweep Class Shares 184 76
Custodian fees 124 41
Transfer agent fees 383 104
Registration fees 70 21
Professional fees 68 33
Printing fees 65 23
Trustees' fees 17 6
Amortization of organization costs -- 1
Other fees 14 7
------- ------
Total expenses 5,167 1,693
------- ------
Less:
Waiver of investment advisory fees (1,362) (486)
------- ------
Net expenses 3,805 1,207
------- ------
NET INVESTMENT INCOME 4,347 1,321
------- ------
Net realized gain (loss) on investments 24 (3)
------- ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 4,371 $1,318
======= ======
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
54 | OCTOBER 31, 2003
STATEMENTS OF CHANGES IN NET ASSETS (000)
For the years ended October 31,
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND
------------------- -----------------
2003 2002 2003 2002
-------- --------- ------- -------
OPERATIONS:
Investment income $ 710 $ 220 $ 86 $ 99
Net realized loss on investments (22,249) (35,629) (2,349) (6,195)
Net change in unrealized appreciation
(depreciation) of investments 53,720 (22,715) 4,184 1,648
-------- --------- ------- -------
Net increase (decrease) in net assets
resulting from operations 32,181 (58,124) 1,921 (4,448)
-------- --------- ------- -------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income:
Institutional Shares (775) -- (106) (100)
Investment Shares - Class A (10) -- (2) (1)
Investment Shares - Class B -- -- -- --
Tax return of capital:
Institutional Shares -- -- (4) --
Investment Shares - Class A -- -- -- --
Investment Shares - Class B -- -- -- --
-------- --------- ------- -------
Total dividends (785) -- (112) (101)
-------- --------- ------- -------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 11,892 27,244 39 837
Shares issued in lieu of cash distributions 397 -- -- --
Payments for redemptions (56,560) (91,883) (3,157) (3,183)
-------- --------- ------- -------
Decrease in net assets from
Institutional Shares transactions (44,271) (64,639) (3,118) (2,346)
-------- --------- ------- -------
Investment Shares - Class A:
Proceeds from sales 1,872 2,186 26 185
Shares issued in lieu of cash distributions 9 -- 1 1
Payments for redemptions (1,610) (3,917) (100) (170)
-------- --------- ------- -------
Increase (decrease) in net assets from
Investment Shares - Class A transactions 271 (1,731) (73) 16
-------- --------- ------- -------
Investment Shares - Class B:
Proceeds from sales 1,577 3,115 80 399
Shares issued in lieu of cash distributions -- -- -- --
Payments for redemptions (2,176) (3,773) (164) (285)
-------- --------- ------- -------
Increase (decrease) in net assets from
Investment Shares - Class B transactions (599) (658) (84) 114
-------- --------- ------- -------
Total decrease in net assets from
capital share transactions (44,599) (67,028) (3,275) (2,216)
-------- --------- ------- -------
Total decrease in net assets (13,203) (125,152) (1,466) (6,765)
-------- --------- ------- -------
NET ASSETS AT BEGINNING OF YEAR 193,279 318,431 14,880 21,645
-------- --------- ------- -------
NET ASSETS AT END OF YEAR $180,076 $ 193,279 $13,414 $14,880
======== ========= ======= =======
<FN>
(1) See note 5 in the notes to financial statements for additional information.
</FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
OCTOBER 31, 2003 | 55
STATEMENTS OF CHANGES IN NET ASSETS (000)
For the years ended October 31,
EXPEDITION
EXPEDITION TAX-FREE
INVESTMENT GRADE INVESTMENT GRADE
BOND FUND BOND FUND
------------------- -----------------
2003 2002 2003 2002
-------- -------- ------- --------
OPERATIONS:
Investment income $ 5,265 $ 6,122 $ 2,668 $ 3,068
Net realized gain on investments 776 1,462 1,425 1,276
Net change in unrealized appreciation
(depreciation) of investments (1,476) 151 (711) (590)
-------- -------- ------- --------
Net increase in net assets resulting
from operations 4,565 7,735 3,382 3,754
-------- -------- ------- --------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Institutional Shares (5,021) (5,843) (2,652) (3,033)
Investment Shares - Class A (231) (250) (15) (31)
Investment Shares - Class B (73) (54) (6) (6)
Realized capital gains:
Institutional Shares -- -- (1,267) (335)
Investment Shares - Class A -- -- (14) (3)
Investment Shares - Class B -- -- (4) (1)
-------- -------- ------- --------
Total dividends and distributions (5,325) (6,147) (3,958) (3,409)
-------- -------- ------- --------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 27,319 24,890 10,476 6,231
Shares issued in lieu of cash distributions 2,852 3,393 989 327
Payments for redemptions (33,137) (38,707) (14,752) (18,293)
-------- -------- ------- --------
Decrease in net assets from
Institutional Shares transactions (2,966) (10,424) (3,287) (11,735)
-------- -------- ------- --------
Investment Shares - Class A:
Proceeds from sales 489 459 182 2
Shares issued in lieu of cash distributions 179 189 28 33
Payments for redemptions (525) (698) (723) (86)
-------- -------- ------- --------
Increase (decrease) in net assets from
Investment Shares - Class A transactions 143 (50) (513) (51)
-------- -------- ------- --------
Investment Shares - Class B:
Proceeds from sales 669 1,224 41 63
Shares issued in lieu of cash distributions 67 47 7 5
Payments for redemptions (510) (454) (51) (27)
-------- -------- ------- --------
Increase (decrease) in net assets from
Investment Shares - Class B transactions 226 817 (3) 41
-------- -------- ------- --------
Total decrease in net assets from
capital share transactions (2,597) (9,657) (3,803) (11,745)
-------- -------- ------- --------
Total decrease in net assets (3,357) (8,069) (4,379) (11,400)
-------- -------- ------- --------
NET ASSETS AT BEGINNING OF YEAR 117,531 125,600 76,115 87,515
-------- -------- ------- --------
NET ASSETS AT END OF YEAR $114,174 $117,531 $71,736 $ 76,115
======== ======== ======= ========
<FN>
(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.
</FN>
The accompanying notes are an integral part of the financial statements.
56 | OCTOBER 31, 2003
STATEMENTS OF CHANGES IN NET ASSETS (000)
For the years ended October 31,
EXPEDITION
EXPEDITION TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
OPERATIONS:
Investment income $ 4,347 $ 7,835 $ 1,321 $ 1,748
Net realized gain (loss) on investments 24 (21) (3) (3)
-------- -------- -------- --------
Net increase in net assets resulting
from operations 4,371 7,814 1,318 1,745
-------- -------- -------- --------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income:
Institutional Shares (2,064) (2,741) (727) (829)
Investment Service Shares (2,081) (4,494) (512) (881)
Sweep Class Shares (249) (601) (81) (38)
-------- -------- -------- --------
Total dividends (4,394) (7,836) (1,320) (1,748)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 831,364 781,592 395,054 203,523
Shares issued in lieu of cash distributions 90 149 -- --
Payments for redemptions (818,571) (691,209) (408,728) (141,669)
-------- -------- -------- --------
Increase (decrease) in net assets from
Institutional Shares transactions 12,883 90,532 (13,674) 61,854
-------- -------- -------- --------
Investment Service Shares:
Proceeds from sales 646,623 721,789 231,192 166,273
Shares issued in lieu of cash distributions 214 398 4 12
Payments for redemptions (689,955) (743,113) (220,987) (202,949)
-------- -------- -------- --------
Increase (decrease) in net assets from
Investment Service Shares transactions (43,118) (20,926) 10,209 (36,664)
-------- -------- -------- --------
Sweep Class Shares:
Proceeds from sales 153,774 154,371 62,132 17,731
Shares issued in lieu of cash distributions 233 575 19 33
Payments for redemptions (150,961) (157,019) (47,843) (13,404)
-------- -------- -------- --------
Increase (decrease) in net assets from
Sweep Class Shares transactions 3,046 (2,073) 14,308 4,360
-------- -------- -------- --------
Total increase (decrease) in net assets from
capital share transactions (27,189) 67,533 10,843 29,550
-------- -------- -------- --------
Total increase (decrease) in net assets (27,212) 67,511 10,841 29,547
-------- -------- -------- --------
NET ASSETS AT BEGINNING OF YEAR 645,769 578,258 183,074 153,527
-------- -------- -------- --------
NET ASSETS AT END OF YEAR $618,557 $645,769 $193,915 $183,074
======== ======== ======== ========
-------- -------- -------- --------
<FN>
(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.
</FN>
The accompanying notes are an integral part of the financial statements.
OCTOBER 31, 2003 | 57
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
- ------------------------------------------------------------------------------------------------------------------------------------
NET NET REALIZED AND DIVIDENDS TOTAL NET ASSET
ASSET VALUE, INVESTMENT UNREALIZED TOTAL FROM NET DISTRIBUTIONS DIVIDENDS VALUE,
BEGINNING INCOME GAINS OR (LOSSES) FROM INVESTMENT FROM AND END OF
OF PERIOD (LOSS) ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003 $ 6.14 $ 0.04 $ 1.24 $ 1.28 $(0.03) $ -- $(0.03) $ 7.39
2002 7.99 0.01 (1.86) (1.85) -- -- -- 6.14
2001 14.25 (0.01) (4.44) (4.45) -- (1.81) (1.81) 7.99
2000 13.09 (0.02) 2.67 2.65 -- (1.49) (1.49) 14.25
1999 10.55 -- 3.13 3.13 -- (0.59) (0.59) 13.09
Investment Shares - Class A
2003 $ 6.08 $ 0.02 $ 1.24 $ 1.26 $(0.01) $ -- $(0.01) $ 7.33
2002 7.93 (0.02) (1.83) (1.85) -- -- -- 6.08
2001 14.18 (0.03) (4.41) (4.44) -- (1.81) (1.81) 7.93
2000 13.06 (0.03) 2.64 2.61 -- (1.49) (1.49) 14.18
1999 10.58 (0.03) 3.10 3.07 -- (0.59) (0.59) 13.06
Investment Shares - Class B
2003 $ 5.87 $(0.04) $ 1.20 $ 1.16 $ -- $ -- $ -- $ 7.03
2002 7.72 (0.07) (1.78) (1.85) -- -- -- 5.87
2001 13.95 (0.09) (4.33) (4.42) -- (1.81) (1.81) 7.72
2000 12.96 (0.08) 2.56 2.48 -- (1.49) (1.49) 13.95
1999(1) 10.82 (0.04) 2.77 2.73 -- (0.59) (0.59) 12.96
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003 $ 5.78 $ 0.05 $ 0.87 $ 0.92 $(0.05)++ $ -- $(0.05)++ $ 6.65
2002 7.42 0.04 (1.64) (1.60) (0.04) -- (0.04) 5.78
2001 10.77 0.05 (2.82) (2.77) (0.05) (0.53) (0.58) 7.42
2000(2) 10.00 0.07 0.76 0.83 (0.06) -- (0.06) 10.77
Investment Shares - Class A
2003 $ 5.77 $ 0.04 $ 0.87 $ 0.91 $(0.04)++ $ -- $(0.04)++ $ 6.64
2002 7.41 0.02 (1.64) (1.62) (0.02) -- (0.02) 5.77
2001 10.76 0.04 (2.83) (2.79) (0.03) (0.53) (0.56) 7.41
2000(3) 9.78 0.04 1.00 1.04 (0.06) -- (0.06) 10.76
Investment Shares - Class B
2003 $ 5.73 $(0.02) $ 0.87 $ 0.85$ --*++ $ -- $ --*++ $ 6.58
2002 7.38 (0.03) (1.62) (1.65) -- -- -- 5.73
2001 10.75 (0.02) (2.82) (2.84) -- (0.53) (0.53) 7.38
2000(4) 9.82 0.01 0.94 0.95 (0.02) -- (0.02) 10.75
- --------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET RATIO OF EXPENSES
NET ASSETS EXPENSES INVESTMENT TO AVERAGE NET ASSETS
TOTAL END OF TO AVERAGE INCOME (LOSS) TO (EXCLUDING WAIVERS PORTFOLIO
RETURN+ PERIOD (000) NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) TURNOVER RATE
- --------------------------------------------------------------------------------------------------------------------
EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003 20.99% $156,142 1.18% 0.51% 1.18% 66.18%
2002 (23.15)% 173,038 1.16% 0.16% 1.16% 47.88%
2001 (34.99)% 288,992 1.10% (0.09)% 1.10% 79.08%
2000 22.01% 422,148 1.05% (0.22)% 1.05% 64.54%
1999 30.87% 363,694 1.05% 0.04% 1.05% 90.76%
Investment Shares - Class A
2003 20.72% $ 8,910 1.43% 0.24% 1.43% 66.18%
2002 (23.33)% 7,100 1.41% (0.09)% 1.41% 47.88%
2001 (35.11)% 11,253 1.35% (0.32)% 1.35% 79.08%
2000 21.73% 10,090 1.30% (0.49)% 1.30% 64.54%
1999 30.16% 4,688 1.30% (0.21)% 1.30% 90.76%
Investment Shares - Class B
2003 19.76% $ 15,024 2.18% (0.50)% 2.18% 66.18%
2002 (23.96)% 13,141 2.16% (0.84)% 2.16% 47.88%
2001 (35.61)% 18,186 2.10% (1.08)% 2.10% 79.08%
2000 20.80% 20,358 2.05% (1.24)% 2.05% 64.54%
1999(1) 26.31% 7,706 2.05% (0.95)% 2.05% 90.76%
- --------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
- --------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003 16.12% $ 12,422 1.25% 0.70% 2.23% 99.66%
2002 (21.66)% 13,865 1.25% 0.56% 1.72% 93.43%
2001 (26.99)% 20,401 1.25% 0.60% 1.42% 88.73%
2000(2) 8.36% 34,420 1.25% 1.00% 1.25% 73.31%
Investment Shares - Class A
2003 15.84% $ 277 1.50% 0.46% 2.48% 99.66%
2002 (21.87)% 309 1.50% 0.32% 1.97% 93.43%
2001 (27.19)% 408 1.50% 0.32% 1.67% 88.73%
2000(3) 10.60% 286 1.50% 0.84% 1.50% 73.31%
Investment Shares - Class B
2003 14.85% $ 715 2.25% (0.29)% 3.23% 99.66%
2002 (22.36)% 706 2.25% (0.43)% 2.72% 93.43%
2001 (27.66)% 836 2.25% (0.45)% 2.42% 88.73%
2000(4) 9.71% 427 2.25% (0.15)% 2.25% 73.31%
<FN>
* Amount represents less than $0.01.
+ Returns are for the period indicated and have not been annualized.
++ Includes Return of Capital of $0.0003.
(1) Commenced operations on November 16, 1998. All ratios for the period have
been annualized.
(2) Commenced operations on March 3, 2000. All ratios for the period have been
annualized.
(3) Commenced operations on March 10, 2000. All ratios for the period have been
annualized.
(4) 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.
</FN>
The accompanying notes are an integral part of the financial statements.
58 & 59 | OCTOBER 31, 2003
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND DIVIDENDS TOTAL NET ASSET
ASSET VALUE, NET UNREALIZED TOTAL FROM NET DISTRIBUTIONS DIVIDENDS VALUE,
BEGINNING INVESTMENT GAINS OR (LOSSES) FROM INVESTMENT FROM AND END OF
OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003 $10.77 $0.49 $(0.07) $ 0.42 $(0.49) $ -- $(0.49) $10.70
2002 10.60 0.53 0.17 0.70 (0.53) -- (0.53) 10.77
2001 9.72 0.53 0.88 1.41 (0.53) -- (0.53) 10.60
2000 9.65 0.53 0.07 0.60 (0.53) -- (0.53) 9.72
1999 10.15 0.49 (0.50) (0.01) (0.49) -- (0.49) 9.65
Investment Shares - Class A
2003 $10.76 $0.46 $(0.07) $ 0.39 $(0.46) $ -- $(0.46) $10.69
2002 10.59 0.50 0.17 0.67 (0.50) -- (0.50) 10.76
2001 9.71 0.50 0.88 1.38 (0.50) -- (0.50) 10.59
2000 9.64 0.51 0.07 0.58 (0.51) -- (0.51) 9.71
1999 10.15 0.47 (0.51) (0.04) (0.47) -- (0.47) 9.64
Investment Shares - Class B
2003 $10.78 $0.38 $(0.07) $ 0.31 $(0.38) $ -- $(0.38) $10.71
2002 10.61 0.42 0.17 0.59 (0.42) -- (0.42) 10.78
2001 9.72 0.43 0.89 1.32 (0.43) -- (0.43) 10.61
2000 9.64 0.44 0.08 0.52 (0.44) -- (0.44) 9.72
1999(1) 10.06 0.38 (0.17) 0.21 (0.63) -- (0.63) 9.64
- ------------------------------------------------------------------------------------------------------------------------------------
TAX-FREE INVESTMENT GRADE BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003 $11.00 $0.39 $0.10 $ 0.49 $(0.39) $(0.19) $(0.58) $10.91
2002(2) 10.89 0.43 0.15 0.58 (0.43) (0.04) (0.47) 11.00
2001 10.37 0.44 0.52 0.96 (0.44) -- (0.44) 10.89
2000(3) 10.00 0.31 0.37 0.68 (0.31) -- (0.31) 10.37
Investment Shares - Class A
2003 $10.99 $0.36 $0.11 $ 0.47 $(0.36) $(0.19) $(0.55) $10.91
2002(2) 10.88 0.40 0.15 0.55 (0.40) (0.04) (0.44) 10.99
2001 10.36 0.42 0.52 0.94 (0.42) -- (0.42) 10.88
2000(4) 10.05 0.28 0.31 0.59 (0.28) -- (0.28) 10.36
Investment Shares - Class B
2003 $10.99 $0.28 $0.11 $ 0.39 $(0.28) $(0.19) $(0.47) $10.91
2002(2) 10.89 0.32 0.14 0.46 (0.32) (0.04) (0.36) 10.99
2001 10.37 0.34 0.52 0.86 (0.34) -- (0.34) 10.89
2000(5) 10.18 0.13 0.19 0.32 (0.13) -- (0.13) 10.37
- ------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET RATIO OF EXPENSES
NET ASSETS EXPENSES INVESTMENT TO AVERAGE NET ASSETS
TOTAL END OF TO AVERAGE INCOME TO (EXCLUDING WAIVERS PORTFOLIO
RETURN+ PERIOD (000) NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) TURNOVER RATE
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
- ------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003 3.89% $106,643 0.80% 4.42% 0.89% 27.97%
2002 6.88% 110,312 0.80% 5.06% 0.90% 13.80%
2001 15.00% 119,279 0.77% 5.35% 0.86% 29.53%
2000 6.49% 136,354 0.75% 5.61% 0.89% 77.09%
1999 (0.06)% 98,889 0.90% 5.00% 1.15% 39.57%
Investment Shares - Class A
2003 3.63% $ 5,407 1.05% 4.17% 1.14% 27.97%
2002 6.61% 5,305 1.05% 4.81% 1.15% 13.80%
2001 14.72% 5,262 1.02% 5.09% 1.11% 29.53%
2000 6.22% 5,222 1.00% 5.32% 1.14% 77.09%
1999 (0.41)% 7,279 1.15% 4.75% 1.40% 39.57%
Investment Shares - Class B
2003 2.86% $ 2,124 1.80% 3.42% 1.89% 27.97%
2002 5.82% 1,914 1.80% 4.03% 1.90% 13.80%
2001 13.99% 1,059 1.77% 4.30% 1.86% 29.53%
2000 5.54% 204 1.75% 4.58% 1.89% 77.09%
1999(1) 2.10% 214 1.90% 4.07% 2.15% 39.57%
- ------------------------------------------------------------------------------------------------------------------
TAX-FREE INVESTMENT GRADE BOND FUND
- ------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003 4.57% $ 71,211 0.80% 3.54% 0.91% 38.86%
2002(2) 5.50% 75,064 0.80% 3.96% 0.88% 23.39%
2001 9.53% 86,461 0.77% 4.22% 0.83% 29.84%
2000(3) 6.84% 84,729 0.65% 4.58% 0.75% 42.74%
Investment Shares - Class A
2003 4.40% $ 305 1.05% 3.31% 1.16% 38.86%
2002(2) 5.24% 827 1.05% 3.71% 1.13% 23.39%
2001 9.26% 872 1.02% 3.96% 1.08% 29.84%
2000(4) 5.95% 523 0.90% 4.36% 1.00% 42.74%
Investment Shares - Class B
2003 3.63% $ 220 1.80% 2.54% 1.91% 38.86%
2002(2) 4.36% 224 1.80% 2.96% 1.88% 23.39%
2001 8.45% 182 1.77% 3.18% 1.83% 29.84%
2000(5) 3.16% 3 1.65% 3.56% 1.75% 42.74%
<FN>
+ 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.
(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.
</FN>
The accompanying notes are an integral part of the financial statements.
60 & 61 | OCTOBER 31, 2003
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND DIVIDENDS TOTAL NET ASSET
ASSET VALUE, NET UNREALIZED TOTAL FROM NET DISTRIBUTIONS DIVIDENDS VALUE,
BEGINNING INVESTMENT GAINS FROM INVESTMENT FROM AND END OF
OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003 $1.00 $0.01 $-- $0.01 $(0.01) $-- $(0.01) $1.00
2002 1.00 0.01 -- 0.01 (0.01) -- (0.01) 1.00
2001 1.00 0.04 -- 0.04 (0.04) -- (0.04) 1.00
2000 1.00 0.06 -- 0.06 (0.06) -- (0.06) 1.00
1999 1.00 0.05 -- 0.05 (0.05) -- (0.05) 1.00
Investment Service Shares
2003 $1.00 $0.01 $-- $0.01 $(0.01) $-- $(0.01) $1.00
2002 1.00 0.01 -- 0.01 (0.01) -- (0.01) 1.00
2001 1.00 0.04 -- 0.04 (0.04) -- (0.04) 1.00
2000 1.00 0.06 -- 0.06 (0.06) -- (0.06) 1.00
1999 1.00 0.05 -- 0.05 (0.05) -- (0.05) 1.00
Sweep Class Shares
2003 $1.00 $0.01 $-- $0.01 $(0.01) $-- $(0.01) $1.00
2002 1.00 0.02 -- 0.02 (0.02) -- (0.02) 1.00
2001 1.00 0.04 -- 0.04 (0.04) -- (0.04) 1.00
2000(1) 1.00 0.01 -- 0.01 (0.01) -- (0.01) 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TAX-FREE MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2003 $1.00 $0.01 $-- $0.01 $(0.01) $-- $(0.01) $1.00
2002 1.00 0.01 -- 0.01 (0.01) -- (0.01) 1.00
2001 1.00 0.03 -- 0.03 (0.03) -- (0.03) 1.00
2000 1.00 0.04 -- 0.04 (0.04) -- (0.04) 1.00
1999(2) 1.00 0.02 -- 0.02 (0.02) -- (0.02) 1.00
Investment Service Shares
2003 $1.00 $0.01 $-- $0.01 $(0.01) $-- $(0.01) $1.00
2002 1.00 0.01 -- 0.01 (0.01) -- (0.01) 1.00
2001 1.00 0.03 -- 0.03 (0.03) -- (0.03) 1.00
2000 1.00 0.03 -- 0.03 (0.03) -- (0.03) 1.00
1999 1.00 0.03 -- 0.03 (0.03) -- (0.03) 1.00
Sweep Class Shares
2003 $1.00 $ -- $-- $ -- $ --* $-- $ --* $1.00
2002 1.00 0.01 -- 0.01 (0.01) -- (0.01) 1.00
2001 1.00 0.03 -- 0.03 (0.03) -- (0.03) 1.00
2000(1) 1.00 0.01 -- 0.01 (0.01) -- (0.01) 1.00
- ----------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET RATIO OF EXPENSES
NET ASSETS EXPENSES INVESTMENT TO AVERAGE NET ASSETS
TOTAL END OF TO AVERAGE INCOME TO (EXCLUDING WAIVERS
RETURN+ PERIOD (000) NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS)
- ----------------------------------------------------------------------------------------------------
MONEY MARKET FUND
- ----------------------------------------------------------------------------------------------------
Institutional Shares
2003 0.88% $251,212 0.45% 0.85% 0.67%
2002 1.56% 238,337 0.45% 1.54% 0.68%
2001 4.61% 147,806 0.45% 4.59% 0.72%
2000 5.96% 130,891 0.43% 5.79% 0.69%
1999 4.83% 130,798 0.43% 4.73% 0.77%
Investment Service Shares
2003 0.63% $313,845 0.70% 0.62% 0.92%
2002 1.31% 356,976 0.70% 1.30% 0.93%
2001 4.35% 377,922 0.70% 4.17% 0.97%
2000 5.69% 324,583 0.68% 5.62% 0.94%
1999 4.56% 186,431 0.68% 4.47% 1.02%
Sweep Class Shares
2003 0.51% $ 53,500 0.82% 0.49% 1.04%
2002 1.18% 50,456 0.82% 1.18% 1.05%
2001 4.22% 52,530 0.82% 3.96% 1.09%
2000(1) 1.53% 31,979 0.80% 5.95% 1.06%
- ----------------------------------------------------------------------------------------------------
TAX-FREE MONEY MARKET FUND
- ----------------------------------------------------------------------------------------------------
Institutional Shares
2003 0.79% $ 84,116 0.43% 0.80% 0.67%
2002 1.28% 97,792 0.43% 1.25% 0.68%
2001 2.97% 35,939 0.43% 2.55% 0.76%
2000 3.80% 5,622 0.43% 3.61% 0.69%
1999(2) 1.69% 28,874 0.43% 3.06% 0.89%
Investment Service Shares
2003 0.54% $ 87,062 0.68% 0.53% 0.92%
2002 1.02% 76,854 0.68% 1.03% 0.93%
2001 2.71% 113,519 0.68% 2.62% 1.01%
2000 3.54% 72,535 0.68% 3.48% 0.94%
1999 2.77% 59,889 0.68% 2.73% 0.95%
Sweep Class Shares
2003 0.42% $ 22,737 0.80% 0.39% 1.04%
2002 0.90% 8,428 0.80% 0.91% 1.05%
2001 2.59% 4,069 0.80% 2.31% 1.13%
2000(1) 1.00% 2,058 0.80% 3.81% 1.06%
<FN>
* 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.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
The accompanying notes are an integral part of the financial statements.
62 & 63 | OCTOBER 31, 2003
NOTES TO FINANCIAL STATEMENTS
(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 October 31, 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") (each a "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.
USE OF ESTIMATES -- 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 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").
64 | OCTOBER 31, 2003
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.
INVESTING IN GOVERNMENT SPONSORED ENTERPRISES -- The Investment Grade Bond and
Money Market Funds invest in securities issued by the Federal Home Loan Mortgage
Corporation ("Freddie Mac") and similar United States Government sponsored
entities such as Federal National Mortgage Association ("Fannie Mae") and the
Federal Home Loan Banks ("FHLB's"). Freddie Mac, Fannie Mae and FHLB's, although
chartered and sponsored by Congress, are not funded by Congressional
appropriations and the debt and mortgage-backed securities issued by Freddie
Mac, Fannie Mae, FHLB's are neither guaranteed nor insured by the United States
Government.
OCTOBER 31, 2003 | 65
NOTES TO FINANCIAL STATEMENTS
EXPENSES -- Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses of the Funds are prorated to the
Funds on the basis of relative daily net assets.
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.
66 | OCTOBER 31, 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 year ended October 31, 2003
were as follows:
Equity Fund ................................................. $1,145
Equity Income Fund .......................................... 223
Investment Grade Bond Fund .................................. 1,902
Money Market Fund ........................................... 17,636
-------
$20,906
=======
Effective October 24, 2003, this agreement was discontinued.
Pursuant to an exemptive order issued by the Securities and Exchange Commission,
the Funds may invest in the Money Market Fund or the Tax-Free Money Market Fund
(the "Money Market Funds"), provided that investments in the Money Market Funds
do not exceed 25% of the investing Fund's total assets.
OCTOBER 31, 2003 | 67
NOTES TO FINANCIAL STATEMENTS
(5) CAPITAL SHARE TRANSACTIONS (000)
For the years ended October 31,
EXPEDITION EXPEDITION EXPEDITION EXPEDITION TAX-FREE
EQUITY EQUITY INCOME INVESTMENT GRADE INVESTMENT GRADE
FUND FUND BOND FUND BOND FUND
----------------- --------------- ---------------- ------------------
2003 2002 2003 2002 2003 2002 2003 2002
------ ------ ------ ------ ------ ------ ------- -------
Institutional Shares:
Shares issued 1,756 3,607 7 117 2,515 2,412 957 576
Shares issued in lieu of cash distributions 64 -- -- -- 263 326 92 31
Shares redeemed (8,868) (11,598) (536) (471) (3,052) (3,752) (1,350) (1,722)
------ ------ ------ ------ ------ ------ ------- -------
Increase (decrease) from
Institutional Shares transactions (7,048) (7,991) (529) (354) (274) (1,014) (301) (1,115)
------ ------ ------ ------ ------ ------ ------- -------
Investment Shares - Class A and
Investment Service Shares, respectively:
Shares issued 292 277 5 27 45 44 16 --
Shares issued in lieu of cash distributions 2 -- -- -- 17 18 3 3
Shares redeemed (246) (529) (17) (29) (49) (66) (66) (8)
------ ------ ------ ------ ------ ------ ------- -------
Increase (decrease) from Investment Shares -
Class A and Investment Service Shares
transactions, respectively 48 (252) (12) (2) 13 (4) (47) (5)
------ ------ ------ ------ ------ ------ ------- -------
Investment Shares - Class B and
Sweep Class Shares, respectively:
Shares issued 252 411 14 56 61 117 4 6
Shares issued in lieu of cash distributions -- -- -- -- 6 5 1 --
Shares redeemed (354) (529) (28) (46) (47) (44) (5) (3)
------ ------ ------ ------ ------ ------ ------- -------
Increase (decrease) from Investment Shares -
Class B and Sweep Class Shares
transactions, respectively (102) (118) (14) 10 20 78 -- 3
------ ------ ------ ------ ------ ------ ------- -------
TOTAL Increase (decrease)
from Share transactions (7,102) (8,361) (555) (346) (241) (940) (348) (1,117)
------ ------ ------ ------ ------ ------ ------- -------
EXPEDITION EXPEDITION
MONEY MARKET TAX-FREE MONEY
FUND MARKET FUND
----------------- -----------------
2003 2002 2003 2002
------- ------- -------- -------
Institutional Shares:
Shares issued 831,364 781,592 395,054 203,523
Shares issued in lieu of cash distributions 90 149 -- --
Shares redeemed (818,571) (691,209) (408,728)(141,669)
------- ------- -------- -------
Increase (decrease) from
Institutional Shares transactions 12,883 90,532 (13,674) 61,854
------- ------- -------- -------
Investment Shares - Class A and
Investment Service Shares, respectively:
Shares issued 646,623 721,789 231,192 166,273
Shares issued in lieu of cash distributions 214 398 4 12
Shares redeemed (689,955) (743,113) (220,987)(202,949)
------- ------- -------- -------
Increase (decrease) from Investment Shares -
Class A and Investment Service Shares
transactions, respectively (43,118) (20,926) 10,209 (36,664)
------- ------- -------- -------
Investment Shares - Class B and
Sweep Class Shares, respectively:
Shares issued 153,774 154,371 62,132 17,731
Shares issued in lieu of cash distributions 233 575 19 33
Shares redeemed (150,961) (157,019) (47,843) (13,404)
------- ------- -------- -------
Increase (decrease) from Investment Shares -
Class B and Sweep Class Shares
transactions, respectively 3,046 (2,073) 14,308 4,360
------- ------- -------- -------
TOTAL Increase (decrease)
from Share transactions (27,189) 67,533 10,843 29,550
------- ------- -------- -------
Amounts designated as "--" are either $0 or have been rounded to $0.
68 & 69 | OCTOBER 31, 2003
NOTES TO FINANCIAL STATEMENTS
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
year ended October 31, 2003, were as follows (000):
TAX-FREE
EQUITY INVESTMENT INVESTMENT
EQUITY INCOME GRADE BOND GRADE BOND
FUND FUND FUND FUND
-------- --------- ----------- ----------
Purchases
U.S. Government ...... $ -- $ -- $31,404 $ --
Other ................ 111,897 12,870 935 27,364
Sales
U.S. Government ...... -- -- 21,194 --
Other ................ 154,043 14,781 10,801 30,634
(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.
Accordingly, at October 31, 2003, the following reclassifications were made to
the Funds (000):
UNDISTRIBUTED ACCUMULATED
NET INVESTMENT REALIZED
PAID-IN-CAPITAL INCOME/(LOSS) GAIN/(LOSS)
--------------- -------------- -----------
Equity Income Fund .......... $(5) $ 5 $--
Investment Grade
Bond Fund ................ -- 59 (59)
Tax-Free Investment Grade
Bond Fund ................ -- (1) 1
Money Market Fund ........... -- 3 (3)
These reclassifications had no effect on net assets or net asset value per
share.
70 | OCTOBER 31, 2003
The tax character of dividends and distributions paid during the last two years
were as follows (000):
TAX-FREE ORDINARY LONG-TERM RETURN OF
INCOME INCOME CAPITAL GAIN CAPITAL TOTAL
-------- -------- ------------ --------- --------
Equity Fund
2003 ............... $ -- $ 785 $-- $-- $ 785
2002 ............... -- -- -- -- --
Equity Income Fund
2003 ............... -- 108 -- 4 112
2002 ............... -- 101 -- -- 101
Investment Grade
Bond Fund
2003 ............... -- 5,325 -- -- 5,325
2002 ............... -- 6,147 -- -- 6,147
Tax-Free Investment
Grade Bond Fund
2003 ............... 2,534 -- 1,424 -- 3,958
2002 ............... 2,182 -- 1,227 -- 3,409
Money Market Fund
2003 ............... -- 4,394 -- -- 4,394
2002 ............... -- 7,836 -- -- 7,836
Tax-Free Money
Market Fund
2003 ............... 1,320 -- -- -- 1,320
2002 ............... 1,748 -- -- -- 1,748
As of October 31, 2003, the components of Distributable Earnings (Accumulated
Losses) were as follows (000):
TOTAL
UNDISTRIBUTED DISTRIBUTABLE
UNDISTRIBUTED LONG-TERM CAPITAL OTHER EARNINGS
ORDINARY CAPITAL LOSS UNREALIZED TEMPORARY (ACCUMULATED
INCOME GAIN CARRYFORWARDS APPRECIATION DIFFERENCES LOSSES)
------------- ----------- ------------- ------------ ----------- -------------
Equity Fund ......... $145 $ -- $(92,794) $12,255 $ -- $(80,394)
Equity Income
Fund ............. -- -- (8,884) 1,204 -- (7,680)
Investment
Grade Bond
Fund ............. 432 -- (1,391) 9,223 (432) 7,832
Tax-Free
Investment
Grade Bond
Fund ............. -- 1 ,424 -- 3,779 17 5,220
Money Market
Fund ............. 264 -- -- -- (261) 3
Tax-Free Money
Market Fund ...... -- -- (13) -- -- (13)
OCTOBER 31, 2003 | 71
NOTES TO FINANCIAL STATEMENTS
For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains. At October 31, 2003, the Funds
had the following capital loss carryforwards (000):
TOTAL
CAPITAL
LOSS
CARRY-
EXPIRES EXPIRES EXPIRES EXPIRES EXPIRES FORWARD
2011 2010 2009 2008 2007 10/31/03
------- ------- ------- ------- ------- --------
Equity Fund ............ $22,416 $33,297 $37,081 $ -- $-- $92,794
Equity Income Fund ..... 2,567 5,967 350 -- -- 8,884
Investment Grade
Bond Fund ........... -- -- -- 1,391 -- 1,391
Tax-Free Money
Market Fund ......... 3 2 -- 1 7 13
During the year ended October 31, 2003, the Investment Grade Bond Fund and the
Money Market Fund utilized capital loss carryforwards of $716,008 and $21,368 to
offset capital gains, respectively.
For Federal income tax purposes, the cost of securities owned at October 31,
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 October 31, 2003 were as follows (000):
NET
FEDERAL APPRECIATED DEPRECIATED UNREALIZED
TAX COST SECURITIES SECURITIES APPRECIATION
-------- ----------- ----------- ------------
Equity Fund .............. $169,599 $24,605 $(12,350) $12,255
Equity Income
Fund .................. 12,193 1,688 (484) 1,204
Investment Grade
Bond Fund ............. 103,755 9,564 (341) 9,223
Tax-Free Investment
Grade Bond Fund ....... 67,253 3,815 (36) 3,779
72 | OCTOBER 31, 2003
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TRUSTEES AND OFFICERS OF THE EXPEDITION FUNDS (UNAUDITED)
Set forth below are the names, age, position with the Trust, length of term of
office, and the principal occupations for the last five years of each of the
persons currently serving as Trustees of the Trust. Trustees who are deemed not
to be "interested persons" of the Trust are referred to as "Independent Board
Members." Messrs. Nesher and Doran are
Trustees who may be deemed to be "interested" persons of the Fund as that term
is defined in the 1940 Act by virtue of their affiliation with the Trust's
Distributor. The following chart lists Trustees and Officers as of November 11,
2003.
TERM OF
POSITION(S) OFFICE AND
NAME, ADDRESS, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S)
AGE 1 THE TRUST TIME SERVED 2 DURING PAST 5 YEARS
- -------------------------------------------------------------------------------------------------------------------
INDEPENDENT
BOARD MEMBERS
- -------------
JOHN T. COONEY Trustee (Since 1993) Vice Chairman of Ameritrust Texas N.A.,
76 yrs. old 1989-1992, and MTrust Corp., 1985-1989.
- -------------------------------------------------------------------------------------------------------------------
ROBERTA. PATTERSON Trustee (Since 1993) Pennsylvania State University, Senior Vice
76 yrs. old President, Treasurer (Emeritus); Financial
and Investment Consultant, Professor of
Transportation since 1984; Vice President-
Investments, Treasurer, Senior Vice President
(Emeritus), 1982-1984. Director,
Pennsylvania Research Corp.
- -------------------------------------------------------------------------------------------------------------------
EUGENE B. PETERS Trustee (Since 1993) Private investor from 1987 to present. Vice
74 yrs. old President and Chief Financial officer, Western
Company of North America (petroleum ser-
vice company), 1980-1986. President of Gene
Peters and Associates (import company),
1978-1980. President and Chief Executive
Officer of Jos. Schlitz Brewing Company
before 1978.
- -------------------------------------------------------------------------------------------------------------------
JAMES M. STOREY Trustee (Since 1994) Partner, Dechert (law firm), September
72 yrs. old 1987-December 1993.
- -------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS
IN THE EXPEDITION TRUST
OVERSEEN BY
NAME, ADDRESS, BOARD OTHER DIRECTORSHIPS
AGE 1 MEMBER HELD BY BOARD MEMBER 3
- --------------------------------------------------------------------------------------------
INDEPENDENT
BOARD MEMBERS
- -------------
JOHN T. COONEY 6 Trustee of the Advisors' Inner Circle
76 yrs. old Fund, The MDL Funds, and The
Arbor Funds.
- --------------------------------------------------------------------------------------------
ROBERTA. PATTERSON 6 Member and Treasurer, Board of
76 yrs. old Trustees of Grove City College. Trustee
of The Advisors' Inner Circle Fund,
The MDL Funds, and The Arbor
Funds.
- --------------------------------------------------------------------------------------------
EUGENE B. PETERS 6 Trustee of the Advisors' Inner Circle
74 yrs. old Fund, The MDL Funds, and The
Arbor Funds.
- --------------------------------------------------------------------------------------------
JAMES M. STOREY 6 Trustee of the Advisors' Inner Circle
72 yrs. old Fund, The MDL Funds, The Arbor
Funds, SEI Asset Allocation Trust,
SEI Daily Income Trust, SEI Index
Funds, SEI Institutional
International Trust, SEI
Institutional Investments Trust, SEI
Institutional Managed Trust, SEI
Liquid Asset Trust, SEI Tax Exempt
Trust, State Street Research Funds,
Massachusetts Health and Education
Tax-Exempt Trust.
- --------------------------------------------------------------------------------------------
<FN>
1 Unless otherwise noted, the business address of each Trustee is SEI
Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456.
2 Each trustee shall hold office during the lifetime of this Trust until the
election and qualification of his or her successor, or until he or she
sooner dies, resigns or is removed in accordance with the Trust's
Declaration of Trust.
3 Directorships of companies required to report to the Securities and Exchange
Commission under the Securities Exchange Act of 1934 (i.e., "public
companies") or other investment companies registered under the 1940 Act.
</FN>
74 & 75 | OCTOBER 31, 2003
TRUSTEES AND OFFICERS OF THE EXPEDITION FUNDS (UNAUDITED)
TERM OF
POSITION(S) OFFICE AND
NAME, ADDRESS, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S)
AGE 1 THE TRUST TIME SERVED 2 DURING PAST 5 YEARS
- --------------------------------------------------------------------------------------------------------------------
INDEPENDENT
BOARD MEMBERS (CONTINUED)
- -------------------------
GEORGE J. SULLIVAN, JR. Trustee (Since 1999) Chief Executive Officer, Newfound
61 yrs. old Consultants Inc. since April 1997. General
Partner, Teton Partners, L.P., June 1991-
December 1996; Chief Financial Officer,
Nobel Partners, L.P., March 1991-December
1996; Treasurer and Clerk, Peak Asset
Management, Inc., since 1991.
- --------------------------------------------------------------------------------------------------------------------
INTERESTED
BOARD MEMBERS
- -------------
ROBERT A. NESHER Chairman (Since 1991) Currently performs various services on behalf
57 yrs. old of the Board of SEI Investments for which Mr. Nesher is
of Trustees compensated. Executive Vice President of SEI
Investments, 1986-1994. Director and
Executive Vice president of the Administrator
and the Distributor, 1981-1994.
- --------------------------------------------------------------------------------------------------------------------
WILLIAM M. DORAN Trustee (Since 1992) Partner, Morgan, Lewis & Bockius LLP
1701 Market Street, (law firm), counsel to the Trust, SEI Investments,
Philadelphia, PA 19103 the Administrator and the Distributor. Director
63 yrs. old of SEI Investments since 1974; Secretary of
SEI Investments since 1978.
- --------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS
IN THE EXPEDITION TRUST
OVERSEEN BY
NAME, ADDRESS, BOARD OTHER DIRECTORSHIPS
AGE 1 MEMBER HELD BY BOARD MEMBER 3
- -------------------------------------------------------------------------------------
INDEPENDENT
BOARD MEMBERS (CONTINUED)
- -------------------------
GEORGE J. SULLIVAN, JR. 6 Trustee, Navigator Securities Lending
61 yrs. old Trust, since 1995. Trustee of The
Advisors' Inner Circle Fund, The MDL
Funds, The Arbor Funds, SEI
Asset Allocation Trust, SEI Daily
Income Trust, SEI Index Funds, SEI
Institutional International Trust, SEI
Institutional Investments Trust, SEI
Institutional Managed Trust, SEI Liquid
Asset Trust and SEI Tax Exempt Trust.
- ------------------------------------------------------------------------------------
INTERESTED
BOARD MEMBERS
- -------------
ROBERT A. NESHER 6 Trustee of The Advisors' Inner Circle
57 yrs. old Fund, Bishop Street Funds, The Arbor
Funds, The MDL Funds, SEI Asset
Allocation Trust, SEI Daily Income
Trust, SEI Index Funds, SEI Institutional
International Trust, SEI Institutional
Investments Trust, SEI Institutional
Managed Trust, SEI Liquid Asset
Trust, SEI Tax Exempt Trust, SEI
Opportunity Master Fund, L.P., SEI
Opportunity Fund, L.P., SEI Absolute
Return Master Fund, L.P., SEI
Absolute Return Fund, L.P.
- ------------------------------------------------------------------------------------
WILLIAM M. DORAN 6 Trustee of The Advisors' Inner Circle
1701 Market Street, Fund, The MDL Funds, The Arbor
Philadelphia, PA 19103 Funds, SEI Asset Allocation Trust, SEI
63 yrs. old Daily Income Trust, SEI Index Funds,
SEI Institutional International Trust,
SEI Institutional Investments Trust, SEI
Institutional Managed Trust, SEI Liquid
Asset Trust and SEI Tax Exempt Trust.
- ------------------------------------------------------------------------------------
<FN>
1 Unless otherwise noted, the business address of each Trustee is SEI
Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456.
2 Each trustee shall hold office during the lifetime of this Trust until the
election and qualification of his or her successor, or until he or she
sooner dies, resigns or is removed in accordance with the Trust's
Declaration of Trust.
3 Directorships of companies required to report to the Securities and Exchange
Commission under the Securities Exchange Act of 1934 (i.e., "public
companies") or other investment companies registered under the 1940 Act.
</FN>
76 & 77 | OCTOBER 31, 2003
TRUSTEES AND OFFICERS OF THE EXPEDITION FUNDS (UNAUDITED)
TERM OF
POSITION(S) OFFICE AND
NAME, ADDRESS, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S)
AGE 1 THE TRUST TIME SERVED 2 DURING PAST 5 YEARS
- --------------------------------------------------------------------------------------------------------------------------------
OFFICERS
- --------
JAMES F. VOLK, CPA President (Since 2003) Senior Operations Officer, SEI
41 yrs. old Investments, Fund Accounting and
Administration (1996-present); Assistant
Chief Accountant of the Securities
& Exchange Commission's Division
of Investment Management (1993-1996).
- --------------------------------------------------------------------------------------------------------------------------------
PETER GOLDEN Controller and Chief (Since 2003) Director, SEI Investments, Fund
39 yrs. old Financial Officer Accounting and Administration since
June 2001. From March 2000 to 2001,
Vice President of Funds Administration
for J.P. Morgan Chase & Co. From 1997
to 2000, Vice President of Pension and
Mutual Fund Accounting for Chase
Manhattan Bank.
- --------------------------------------------------------------------------------------------------------------------------------
JENNIFER SPRATLEY, CPA Co-Controller and Co-Chief (Since 2001) Director, SEI Investments, Fund
34 yrs. old Financial Officer Accounting and Administration since
November 1999; Audit Manager, Ernst
& Young LLP from 1991-1999.
- --------------------------------------------------------------------------------------------------------------------------------
SHERRY K. VETTERLEIN Vice President and Secretary (Since 2001) Vice President and Assistant Secretary of
41 yrs. old SEI Investments Global Funds Services and
SEI Investments Distribution Co. since
January 2001; Shareholder/Partner,
Buchanan Ingersoll Professional Corporation
from 1992-2000.
- --------------------------------------------------------------------------------------------------------------------------------
LYDIA A. GAVALIS Vice President and (Since 1998) Vice President and Assistant Secretary
39 yrs. old Assistant Secretary of SEI Investments, SEI Investments
Global Funds Services and SEI Investments
Distribution Co. since 1998; Assistant
General Counsel and Director of Arbitration,
Philadelphia Stock Exchange from 1989-1998.
- --------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS
IN THE ADVISORS'
INNER CIRCLE FUND
NAME, ADDRESS, OVERSEEN BY OTHER DIRECTORSHIPS
AGE 1 OFFICER HELD BY OFFICER
- ---------------------------------------------------------------------------------
OFFICERS
- --------
JAMES F. VOLK, CPA N/A N/A
41 yrs. old
- ---------------------------------------------------------------------------------
PETER GOLDEN N/A N/A
39 yrs. old
- ---------------------------------------------------------------------------------
JENNIFER SPRATLEY, CPA N/A N/A
34 yrs. old
- ---------------------------------------------------------------------------------
SHERRY K. VETTERLEIN N/A N/A
41 yrs. old
- ---------------------------------------------------------------------------------
LYDIA A. GAVALIS N/A N/A
39 yrs. old
- ---------------------------------------------------------------------------------
<FN>
1 The business address of each officer is SEI Investments Company, 1 Freedom
Valley Drive, Oaks, Pennsylvania 19456.
</FN>
78 & 79 | OCTOBER 31, 2003
TRUSTEES AND OFFICERS OF THE EXPEDITION FUNDS (UNAUDITED)
TERM OF
POSITION(S) OFFICE AND
NAME, ADDRESS, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S)
AGE 1 THE TRUST TIME SERVED 2 DURING PAST 5 YEARS
- --------------------------------------------------------------------------------------------------------------------------------
OFFICERS (CONTINUED)
- -------------------
TIMOTHY D. BARTO Assistant Vice President (Since 2000) Vice President and Assistant Secretary of SEI
35 yrs. old and Assistant Secretary Investments Global Funds Services and SEI
Investments Distribution Co. since 1999;
Associate, Dechert (law firm) from 1997-1999;
Associate, Richter, Miller & Finn (law firm)
from 1994-1997.
- --------------------------------------------------------------------------------------------------------------------------------
WILLIAM E. ZITELLI Assistant Vice President (Since 2000) Vice President and Assistant Secretary of
35 yrs. old and Secretary SEI Investments Global Funds Services and
SEI Investments Distribution Co. since 2000;
Vice President, Merrill Lynch & Co. Asset
Management Group from 1998-2000; Associate
at Pepper Hamilton LLP from 1997-1998.
- --------------------------------------------------------------------------------------------------------------------------------
CHRISTINE M. MCCULLOUGH Vice President and (Since 2000) Vice President and Assistant Secretary of SEI
43 yrs. old Assistant Secretary Investments Global Funds Services and SEI
Investments Distribution Co. since 1999;
Associate at White and Williams LLP
from 1991-1999.
- --------------------------------------------------------------------------------------------------------------------------------
JOHN C. MUNCH Vice President and (Since 2001) Vice President and Assistant Secretary of SEI
32 yrs. old Assistant Secretary Investments Global Funds Services and SEI
Investments Distribution Co. since 2001;
Associate at Howard Rice Nemorvoski
Canady Falk & Rabkin from 1998-2001;
Associate at Seward & Kissel from 1996-1998.
- --------------------------------------------------------------------------------------------------------------------------------
JOHN MUNERA Vice President and (Since 2002) Middle Office Compliance Officer at SEI
40 yrs. old Assistant Secretary Investments since 2000; Supervising Examiner
at Federal Reserve Bank of Philadelphia from
1998-2000.
- --------------------------------------------------------------------------------------------------------------------------------
CORI DAGGETT Vice President and (Since 2003) Employed by SEI Investments Company
42 yrs. old Assistant Secretary since 2003. Associate at Drinker Biddle & Reath
from 1998-2003.
- --------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS
IN THE ADVISORS'
INNER CIRCLE FUND
NAME, ADDRESS, OVERSEEN BY OTHER DIRECTORSHIPS
AGE 1 OFFICER HELD BY OFFICER
- --------------------------------------------------------------------------------
OFFICERS (CONTINUED)
- -------------------
TIMOTHY D. BARTO N/A N/A
35 yrs. old
- --------------------------------------------------------------------------------
WILLIAM E. ZITELLI N/A N/A
35 yrs. old
- --------------------------------------------------------------------------------
CHRISTINE M. MCCULLOUGH N/A N/A
43 yrs. old
- --------------------------------------------------------------------------------
JOHN C. MUNCH N/A N/A
32 yrs. old
- --------------------------------------------------------------------------------
JOHN MUNERA N/A N/A
40 yrs. old
- --------------------------------------------------------------------------------
CORI DAGGETT N/A N/A
42 yrs. old
- --------------------------------------------------------------------------------
1 The business address of each officer is SEI Investments Company, 1 Freedom
Valley Drive, Oaks, Pennsylvania 19456.
80 & 81 | OCTOBER 31, 2003
NOTICE TO SHAREHOLDERS (UNAUDITED)
For shareholders that do not have a October 31, 2003 tax year end, this notice
is for informational purposes only. For shareholders with a October 31, 2003,
please consult your tax advisor as to the pertinence of this notice. For this
fiscal year ended October 31, 2003, each Fund is designating the following items
with regard to distributions paid during the year.
Qualifying
Long Term Qualified Dividend
(20% Rate) 5-Year Ordinary Income
Capital Gain Gain Income Tax Exempt Total Qualifying (15% Tax Rate
Distribution Distributions Distributions Interest Distributions Dividends(1) For QDI)(2)
------------ ------------- ------------- ---------- ------------- ------------ -------------
Equity Fund 0.00% 0.00% 100.00% 0.00% 100.00% 100.00% 72.01%
Equity Income
Fund 0.00% 0.00% 100.00% 0.00% 100.00% 100.00% 79.75%
Investment
Grade Bond
Fund 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% 0.00%
Tax-Free
Investment
Grade Bond 30.85% 0.00% 1.66% 67.49% 100.00% 0.00% 0.00%
Money Market
Fund 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% 0.00%
Tax-Free
Money Market
Fund 0.00% 0.00% 0.00% 100.00% 100.00% 0.00% 0.00%
<FN>
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction and is reflected as a percentage of "Ordinary
Income Distributions."
(2) The percentage in this column represents the amount of "Qualifying Dividend
Income" as created by the Jobs and Growth Tax Relief Reconciliation Act of
2003 and is reflected as a percentage of "Ordinary Income Distributions." It
is the intention of each of the aforementioned Funds to designate the
maximum amount permitted by the law.
</FN>
The information reported herein may differ from the information and
distributions taxable to the shareholders for the calendar year ending
December 31, 2003. Complete information will be computed and reported in
conjunction with your 2003 Form 1099-DIV.
82 | OCTOBER 31, 2003
NOTES
NOTES
[LOGO] 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-AR-011-0800
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, comptroller or
principal accounting officer, and any person who performs a similar function.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The registrant's board of trustees has determined that the registrant has
at least one audit committee financial expert serving on the audit committee.
(a)(2) The audit committee financial experts are George Sullivan and Robert
Patterson and are independent as defined in Form N-CSR Item 3(a)(2).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable - only effective for annual reports for periods ending on or
after December 15, 2003.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. (RESERVED)
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEMS 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 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 control over
financial reporting that occurred during the registrant's last fiscal half-year
that has materially affected, or is reasonably likely to materially affect, the
registrants internal control over financial reporting.
ITEMS 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Code of Ethics attached hereto.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit
- --------------------------------------------------------------------------------
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) The Advisors' Inner Circle Fund
By (Signature and Title)* \s\ James F. Volk
-----------------
James F. Volk, President
Date 12/22/03
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 F. Volk
-----------------
James F. Volk, President
Date 12/22/03
By (Signature and Title)* \s\ Peter J. Golden
-------------------
Peter J. Golden, Controller and CFO
Date 12/22/03
* Print the name and title of each signing officer under his or her signature.