UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________
FORM N-CSR
________
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-5900
EXPEDITION FUNDS
(Exact name of registrant as specified in charter)
________
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, 2004
DATE OF REPORTING PERIOD: APRIL 30, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
Expedition Funds GUIDING YOUR WAY 2004 Semi-Annual Report
[COMPASS GRAPHIC OMITTED]
[NUMBERS GRAPHIC OMITTED]
[EXPEDITION FUNDS LOGO OMITTED]
Table of Contents
Letter to Our Shareholders ............................ 1
Statements of Net Assets .............................. 3
Statements of Operations .............................. 40
Statements of Changes in Net Assets ................... 43
Financial Highlights .................................. 46
Notes to Financial Statements ......................... 52
A description of the policies and procedures that the Expedition Funds use to
determine how to vote proxies (if any) relating to portfolio securities is
available without charge (i) upon request, by calling 800-992-2085; and (ii) on
the Commission's website at http://ww.sec.gov.; and beginning no later than
August 31, 2004, information (if any) regarding how the Fund voted proxies
relating to portfolio securities during the most recent 12-month period ended
June 30, is available without charge (i) by calling 800-992-2085; and (ii) on
the Commission's website at http://ww.sec.gov.
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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:
During the six-month period ended April 30, 2004, the economy and the markets
continued to gain momentum.
Despite the ongoing difficulties in Iraq and rising oil prices, the nation's
economy produced very positive results, reflected in strong growth in the gross
domestic product (GDP), higher factory orders, and excellent corporate earnings
over a broad range of industries and sectors.
The only major indicator that remained weak was employment, leading many to
categorize this as a "jobless recovery." However, near the end of the six-month
period, employment too showed a surprising surge, indicating better times ahead
for the nation's payrolls.
This good news helped fuel a continued rally in the stock market, which has
responded well to each new report of outstanding corporate earnings. Conversely,
it hampered performance in bonds.
JITTERS IN THE BOND MARKET.
Bonds were relatively weak for much of the past six months, as investors
recognized that the interest rate party may be over for the foreseeable future.
In recent months, the Federal Reserve Board has faced a difficult balancing act.
Clearly, the economy's surge, along with sharply rising oil prices, would
suggest that inflation is on the rise. And, in fact, prices of many products and
services are rising in response to increased demand and higher energy costs.
But in an election year, even the most independent Fed chairman can be loath to
push interest rates higher at the risk of dampening a recovery. And the current
chairman, Alan Greenspan, has thus far skirted the issue by holding rates at
their historically low levels while suggesting that the Fed is becoming "less
patient" than in recent years.
Mr. Greenspan has also expressed concern over the rapid rise in government
spending, as the nation attempts to pay for an extremely costly war abroad and
an even more costly new Medicare prescription drug program at home. Together,
these factors are a prescription for higher rates - and lower bond prices.
A STRONG PERIOD FOR STOCKS.
Stock investors gained greater confidence during the period, pushing the major
indices to recent highs. And while a general mood of caution remains, investors
found it hard to overlook the many positive reports emanating from the corporate
world.
In recent months, company after company has reported strong growth in revenues
and profits, signaling a broad recovery in both consumer and business spending.
Among the sectors that performed well during the period were technology, durable
goods, and financial services. Amazingly, even many Internet companies
experienced strong gains as investors realized that a few dot-com concepts -
most notably eBay*, Amazon.com*, and Yahoo* - can actually result in real
profits.
One factor behind the rapid acceleration in corporate earnings is an increased
refinement of company management practices.
Over the past few years, many companies have used the economic downturn as an
opportunity to streamline their operations and reduce overhead costs. The wisest
among them also looked for opportunities to boost market share - even when the
overall market was stagnant
APRIL 30, 2004 1
LETTER TO OUR SHAREHOLDERS (CONCLUDED)
or shrinking. As a result, a large portion of today's higher revenues has moved
straight to the bottom line. With employment levels and energy costs on the
rise, future profit gains may be more modest. But for long-term investors, it is
important to recognize that many businesses are learning how to manage through
the inevitable ups and downs of the economy.
PARTICIPATING FULLY.
The Expedition Funds family participated fully in the positive results of the
stock and bond markets over the past six months, producing good results while
avoiding excessive levels of risk.
We continued to focus on long-term value rather than current trends. And we
continued to be guided by the experience we've gained over a period of decades -
rather than by the headlines in today's newspaper.
We believe that this approach reflects the best interests of our investors, who
choose our Funds in order to pursue lifetime goals, not short-term gains.
APPRECIATING OUR FREEDOMS.
As the news of the world is brought to our door each day, we are reminded of the
many freedoms we Americans take for granted.
One of these is the freedom to elect our own leaders. This basic right is
currently being purchased at a very high cost for the people of Iraq, which
should remind us of our sacred duty to cast our votes this November.
Another is the right to take part in the growth of our nation through investing.
This everyday right may seem unremarkable, until we realize that many people
around the world lack the means and resources to invest.
We are grateful that you have placed your trust in the Expedition Funds as the
vehicle for pursuing your right to build a better future. And we will continue
to strive to earn that trust.
Sincerely,
/s/Denise A. Woodham
Denise A. Woodham
Managing Director of Investments
Compass Asset Management Group
*As of April 30, 2004 the Funds did not hold any shares of these stocks.
TO DETERMINE IF THESE FUNDS ARE AN APPROPRIATE INVESTMENT FOR YOU, CAREFULLY
CONSIDER THE FUNDS' INVESTMENT OBJECTIVES, RISK FACTORS AND CHARGES AND EXPENSES
BEFORE INVESTING. THIS AND OTHER INFORMATION CAN BE FOUND IN THE FUNDS'
PROSPECTUS, WHICH MAY BE OBTAINED BY CALLING 1-800-992-2085, OR LOGGING ON TO
OUR WEBSITE AT WWW.EXPEDITIONFUNDS.COM. PLEASE READ IT CAREFULLY BEFORE
INVESTING.
THE MATERIAL REPRESENTS THE MANAGER'S ASSESSMENT OF THE PORTFOLIO AND MARKET
ENVIRONMENT AT A SPECIFIC POINT IN TIME AND SHOULD NOT BE RELIED UPON BY THE
READER AS RESEARCH OR INVESTMENT ADVICE REGARDING ANY STOCK. THE EXPEDITION
FUNDS ARE DISTRIBUTED BY SEI INVESTMENTS DISTRIBUTION CO. SEI INVESTMENTS
DISTRIBUTION CO. IS NOT AFFILIATED WITH EXPEDITION FUNDS OR ANY OTHER AFFILIATE.
THERE ARE RISKS INVOLVED WITH INVESTING, INCLUDING POSSIBLE LOSS OF PRINCIPAL.
IN ADDITION TO THESE RISKS, PRODUCTS AND COMPANIES IN WHICH TECHNOLOGY FUNDS
INVEST MAY BE SUBJECT TO SEVERE COMPETITION AND RAPID OBSOLESCENCE.
2 APRIL 30, 2004
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
COMMON STOCK - 99.7%
AEROSPACE & DEFENSE - 2.4%
United Technologies 50,400 $ 4,347
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TOTAL AEROSPACE & DEFENSE 4,347
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BROADCASTING, NEWSPAPERS & ADVERTISING - 5.8%
Comcast, Cl A* 90,000 2,709
Gannett 33,000 2,861
Omnicom Group 42,000 3,339
UTStarcom* 55,000 1,449
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TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 10,358
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BROKER/DEALERS - 4.6%
Goldman Sachs Group 40,000 3,870
Morgan Stanley 85,000 4,368
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TOTAL BROKER/DEALERS 8,238
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COMMUNICATIONS EQUIPMENT - 2.4%
L-3 Communications Holdings 69,530 4,293
- --------------------------------------------------------------------------------
TOTAL COMMUNICATIONS EQUIPMENT 4,293
- --------------------------------------------------------------------------------
COMPUTERS & SERVICES - 6.5%
Cisco Systems* 126,000 2,630
Dell* 86,000 2,985
Intel 129,000 3,319
International Business Machines 30,000 2,645
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TOTAL COMPUTERS & SERVICES 11,579
- --------------------------------------------------------------------------------
COSMETICS/TOILETRIES - 4.0%
Gillette 80,000 3,274
Procter & Gamble 36,000 3,807
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TOTAL COSMETICS/TOILETRIES 7,081
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 7.2%
American Express 100,000 4,895
Citigroup 87,000 4,184
JP Morgan Chase 100,000 3,760
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TOTAL DIVERSIFIED FINANCIAL SERVICES 12,839
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DIVERSIFIED MANUFACTURING - 4.6%
Fortune Brands 40,000 3,050
General Electric 171,000 5,121
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TOTAL DIVERSIFIED MANUFACTURING 8,171
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ELECTRICAL SERVICES - 2.4%
Exelon 65,000 4,351
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TOTAL ELECTRICAL SERVICES 4,351
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APRIL 30, 2004 3
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
ENTERTAINMENT - 1.0%
Harrah's Entertainment 34,000 $ 1,808
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TOTAL ENTERTAINMENT 1,808
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FOOD, BEVERAGE & TOBACCO - 5.8%
Anheuser-Busch 70,000 3,587
Constellation Brands, Cl A* 100,000 3,313
Sysco 90,000 3,442
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TOTAL FOOD, BEVERAGE & TOBACCO 10,342
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INSURANCE - 9.5%
Allstate 85,000 3,901
American International Group 55,000 3,941
Lincoln National 110,000 4,937
Marsh & McLennan 90,000 4,059
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TOTAL INSURANCE 16,838
- --------------------------------------------------------------------------------
MACHINERY - 2.0%
Caterpillar 45,000 3,498
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TOTAL MACHINERY 3,498
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MEASURING DEVICES - 1.6%
PerkinElmer 144,000 2,772
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TOTAL MEASURING DEVICES 2,772
- --------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES - 12.8%
Amgen* 60,000 3,376
CR Bard 35,000 3,720
Invitrogen* 35,000 2,528
Mylan Laboratories 165,000 3,780
Quest Diagnostics 22,800 1,923
St. Jude Medical* 37,000 2,822
UnitedHealth Group 75,000 4,611
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TOTAL MEDICAL PRODUCTS & SERVICES 22,760
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METALS-ALUMINUM - 1.5%
Alcoa 85,000 2,614
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TOTAL METALS-ALUMINUM 2,614
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MISCELLANEOUS BUSINESS SERVICES - 3.2%
Affiliated Computer Services, Cl A* 55,000 2,668
First Data 67,000 3,041
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TOTAL MISCELLANEOUS BUSINESS SERVICES 5,709
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PETROLEUM REFINING - 5.5%
Apache Corporation 84,000 3,517
ConocoPhillips 55,000 3,922
Schlumberger 40,000 2,341
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TOTAL PETROLEUM REFINING 9,780
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4 APRIL 30, 2004
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
PHARMACEUTICALS - 2.8%
Pfizer 140,000 $ 5,006
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TOTAL PHARMACEUTICALS 5,006
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RETAIL - 6.6%
Best Buy 46,000 2,495
CVS 80,000 3,090
Staples* 130,000 3,349
Target 64,000 2,776
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TOTAL RETAIL 11,710
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SEMI-CONDUCTORS/INSTRUMENTS - 0.9%
Applied Materials* 90,000 1,641
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TOTAL SEMI-CONDUCTORS/INSTRUMENTS 1,641
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SOFTWARE & PROGRAMMING - 2.9%
Microsoft 110,000 2,857
Oracle* 50,000 561
Veritas Software* 63,000 1,680
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TOTAL SOFTWARE & PROGRAMMING 5,098
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TELEPHONES & TELECOMMUNICATIONS - 3.7%
Nextel Communications* 120,000 2,863
Nokia ADR 50,000 701
SBC Communications 120,000 2,988
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TOTAL TELEPHONES & TELECOMMUNICATIONS 6,552
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TOTAL COMMON STOCK
(COST $159,563) 177,385
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RELATED PARTY MONEY MARKET FUND - 0.3%
Expedition Money Market Fund+ 466,293 466
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TOTAL RELATED PARTY MONEY MARKET FUND
(COST $466) 466
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TOTAL INVESTMENTS - 100.0%
(COST $160,029) 177,851
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OTHER ASSETS AND LIABILITIES - 0.0%
Investment Advisory Fees Payable (114)
Administrator Fees Payable (30)
Distribution Fees Payable (15)
Custodian Fees Payable (3)
Trustees' Fees Payable (2)
Other Assets and Liabilities, Net 216
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TOTAL OTHER ASSETS AND LIABILITIES 52
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APRIL 30, 2004 5
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 20,246,993 outstanding shares of
beneficial interest $211,710
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 983,478 outstanding shares of
beneficial interest 12,961
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 2,075,776 outstanding shares of
beneficial interest 26,693
Undistributed net investment income 117
Accumulated net realized loss on investments (91,400)
Net unrealized appreciation on investments 17,822
- --------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $177,903
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($155,344,097 / 20,246,993 SHARES) $7.67
- --------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A
($7,473,330 / 983,478 SHARES) $7.60
- --------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $7.92
- --------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2)
($15,085,539 / 2,075,776 SHARES) $7.27
- --------------------------------------------------------------------------------
* 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
The accompanying notes are an integral part of the financial statements.
6 APRIL 30, 2004
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
COMMON STOCK - 99.2%
AEROSPACE & DEFENSE - 2.7%
General Dynamics 1,500 $ 140
Raytheon 4,000 129
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TOTAL AEROSPACE & DEFENSE 269
- --------------------------------------------------------------------------------
AIR TRANSPORTATION - 0.7%
FedEx 1,000 72
- --------------------------------------------------------------------------------
TOTAL AIR TRANSPORTATION 72
- --------------------------------------------------------------------------------
BANKS - 14.6%
Bank of America 2,000 161
Bank of New York 10,000 291
BB&T 5,000 173
Keycorp 8,000 238
Union Planters 3,500 97
Wachovia 5,000 229
Wells Fargo 5,000 282
- --------------------------------------------------------------------------------
TOTAL BANKS 1,471
- --------------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING - 1.5%
Comcast, Cl A* 5,000 150
- --------------------------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 150
- --------------------------------------------------------------------------------
BROKER/DEALERS - 6.6%
Goldman Sachs Group 2,500 242
Merrill Lynch 4,000 217
Morgan Stanley 4,000 205
- --------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 664
- --------------------------------------------------------------------------------
CHEMICALS - 3.6%
EI Du Pont de Nemours 4,750 204
PPG Industries 2,700 160
- --------------------------------------------------------------------------------
TOTAL CHEMICALS 364
- --------------------------------------------------------------------------------
COMPUTERS & SERVICES - 2.8%
Hewlett-Packard 7,000 138
International Business Machines 1,700 150
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TOTAL COMPUTERS & SERVICES 288
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DIVERSIFIED FINANCIAL SERVICES - 7.4%
Citigroup 6,500 312
JP Morgan Chase 7,000 263
Viad 7,000 175
- --------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 750
- --------------------------------------------------------------------------------
APRIL 30, 2004 7
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING - 5.9%
Fortune Brands 4,250 $ 324
General Electric 9,000 270
- --------------------------------------------------------------------------------
TOTAL DIVERSIFIED MANUFACTURING 594
- --------------------------------------------------------------------------------
ELECTRICAL SERVICES - 6.3%
Centerpoint Energy 18,500 200
Exelon 3,500 234
Southern 7,000 201
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TOTAL ELECTRICAL SERVICES 635
- --------------------------------------------------------------------------------
ENTERTAINMENT - 2.9%
Harrah's Entertainment 5,500 292
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TOTAL ENTERTAINMENT 292
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 2.0%
Adolph Coors, Cl B 3,000 197
- --------------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 197
- --------------------------------------------------------------------------------
INSURANCE - 6.1%
ACE Ltd. 7,500 329
American International Group 4,000 286
- --------------------------------------------------------------------------------
TOTAL INSURANCE 615
- --------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES - 1.7%
Quest Diagnostics 2,000 169
- --------------------------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 169
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METALS - 1.4%
Alcan 3,500 141
- --------------------------------------------------------------------------------
TOTAL METALS 141
- --------------------------------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES - 1.6%
First Data 3,500 159
- --------------------------------------------------------------------------------
TOTAL MISCELLANEOUS BUSINESS SERVICES 159
- --------------------------------------------------------------------------------
PETROLEUM REFINING - 11.1%
Anadarko Petroleum 5,000 268
ChevronTexaco 2,250 206
Exxon Mobil 9,000 383
Noble* 2,600 97
Royal Dutch Petroleum 3,500 170
- --------------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 1,124
- --------------------------------------------------------------------------------
PHARMACEUTICALS - 2.2%
Abbott Laboratories 5,000 220
- --------------------------------------------------------------------------------
TOTAL PHARMACEUTICALS 220
- --------------------------------------------------------------------------------
8 APRIL 30, 2004
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 1.0%
Crescent Real Estate Equity 6,500 $ 101
- --------------------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUSTS 101
- --------------------------------------------------------------------------------
RETAIL - 8.6%
CVS 8,000 309
Wal-Mart Stores 4,400 251
Yum! Brands* 8,000 310
- --------------------------------------------------------------------------------
TOTAL RETAIL 870
- --------------------------------------------------------------------------------
SOFTWARE & PROGRAMMING - 1.5%
Microsoft 6,000 156
- --------------------------------------------------------------------------------
TOTAL SOFTWARE & PROGRAMMING 156
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 7.0%
Alltel 3,000 151
BellSouth 6,000 155
Nokia ADR 8,000 112
SBC Communications 5,500 137
Verizon Communications 4,000 151
- --------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 706
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $8,961) 10,007
- --------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 0.9%
Expedition Money Market Fund+ 91,599 92
- --------------------------------------------------------------------------------
TOTAL RELATED PARTY MONEY MARKET FUND
(COST $92) 92
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.1%
(COST $9,053) 10,099
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - (0.1)%
Receivable Due from Investment Advisor 5
Administrator Fees Payable (6)
Distribution Fees Payable (1)
Other Assets and Liabilities, Net (10)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (12)
- --------------------------------------------------------------------------------
APRIL 30, 2004 9
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 1,309,209 outstanding shares of
beneficial interest $15,518
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 43,207 outstanding shares of
beneficial interest 518
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 104,404 outstanding shares of
beneficial interest 1,132
Undistributed net investment income 16
Accumulated net realized loss on investments (8,143)
Net unrealized appreciation on investments 1,046
- --------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $10,087
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($9,074,497 / 1,309,209 SHARES) $6.93
- --------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A
($298,954 / 43,207 SHARES) $6.92
- --------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $7.21
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2)
($713,602 / 104,404 SHARES) $6.84
- --------------------------------------------------------------------------------
* 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
The accompanying notes are an integral part of the financial statements.
10 APRIL 30, 2004
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 36.4%
BANKS - 3.0%
Bank of America
5.875%, 02/15/09 $1,000 $ 1,076
Bank One
6.000%, 08/01/08 2,000 2,165
- --------------------------------------------------------------------------------
TOTAL BANKS 3,241
- --------------------------------------------------------------------------------
BROKER/DEALERS - 5.0%
Goldman Sachs Group
6.600%, 01/15/12 2,000 2,193
Merrill Lynch
6.375%, 10/15/08 1,000 1,093
Morgan Stanley
6.750%, 04/15/11 2,000 2,212
- --------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 5,498
- --------------------------------------------------------------------------------
CHEMICALS - 2.1%
EI Du Pont de Nemours
6.875%, 10/15/09 2,000 2,265
- --------------------------------------------------------------------------------
TOTAL CHEMICALS 2,265
- --------------------------------------------------------------------------------
COMPUTERS & SERVICES - 1.8%
International Business Machines
4.750%, 11/29/12 2,000 1,980
- --------------------------------------------------------------------------------
TOTAL COMPUTERS & SERVICES 1,980
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 9.8%
American Express
4.875%, 07/15/13 2,000 1,972
General Electric Capital, Ser A, MTN
7.375%, 01/19/10 3,000 3,457
General Motors Acceptance
6.150%, 04/05/07 2,000 2,118
Household Finance
6.375%, 10/15/11 1,000 1,087
Wells Fargo Financial
5.875%, 08/15/08 2,000 2,160
- --------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 10,794
- --------------------------------------------------------------------------------
ELECTRICAL SERVICES - 1.9%
Alabama Power, Ser G
5.375%, 10/01/08 2,000 2,103
- --------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 2,103
- --------------------------------------------------------------------------------
APRIL 30, 2004 11
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
PHARMACEUTICALS - 1.8%
Abbott Laboratories
3.500%, 02/17/09 $2,000 $ 1,962
- --------------------------------------------------------------------------------
TOTAL PHARMACEUTICALS 1,962
- --------------------------------------------------------------------------------
RETAIL - 8.1%
Lowe's
8.250%, 06/01/10 2,000 2,403
Target
5.875%, 11/01/08 2,000 2,158
4.000%, 06/15/13 1,000 926
Wal-Mart Stores
6.875%, 08/10/09 3,000 3,390
- --------------------------------------------------------------------------------
TOTAL RETAIL 8,877
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 2.9%
SBC Communications
5.875%, 02/01/12 1,000 1,047
Verizon Wireless
5.375%, 12/15/06 2,000 2,112
- --------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 3,159
- --------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $36,721) 39,879
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 25.5%
FHLB
3.125%, 08/15/07 3,000 2,985
FHLB, Ser 100
5.800%, 09/02/08 2,000 2,162
FHLB, Ser 363
4.500%, 11/15/12 3,000 2,936
FHLMC
7.000%, 03/15/10 3,000 3,424
6.625%, 09/15/09 3,000 3,360
FNMA
7.250%, 01/15/10 2,500 2,885
5.500%, 03/15/11 3,000 3,177
5.250%, 01/15/09 3,000 3,174
4.375%, 03/15/13 4,000 3,867
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $26,501) 27,970
- --------------------------------------------------------------------------------
12 APRIL 30, 2004
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 24.3%
U.S. Treasury Notes
7.000%, 07/15/06 $2,500 $ 2,743
6.500%, 10/15/06 3,000 3,277
6.500%, 02/15/10 1,000 1,137
6.125%, 08/15/07 3,000 3,292
6.000%, 08/15/09 3,000 3,329
5.625%, 05/15/08 2,000 2,174
5.500%, 05/15/09 3,000 3,262
5.000%, 02/15/11 500 528
4.375%, 08/15/12 2,000 2,004
4.250%, 11/15/13 2,000 1,963
4.000%, 11/15/12 1,000 974
4.000%, 02/15/14 2,000 1,922
- --------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $24,862) 26,605
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS - 7.5%
FHLMC, Gold Pool #E00532
6.500%, 02/01/13 169 179
FHLMC, Gold Pool #E00543
6.000%, 04/01/13 380 398
FHLMC, Gold Pool #E00584
6.000%, 11/01/13 554 580
FHLMC, Gold Pool #E00832
7.500%, 04/01/15 215 230
FHLMC, Gold Pool #E00856
7.500%, 06/01/15 207 221
FNMA, Pool # 614934
6.000%, 12/01/16 1,733 1,810
FNMA, Pool #535966
7.000%, 05/01/16 563 602
GNMA, Pool #552999
5.000%, 01/15/18 4,140 4,194
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(COST $8,113) 8,214
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 3.1%
MBNA Master Credit Card Trust, Ser 1999-J, Cl A
7.000%, 02/15/12 3,000 3,394
- --------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $3,141) 3,394
- --------------------------------------------------------------------------------
APRIL 30, 2004 13
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 2.3%
Expedition Money Market Fund+ 2,546,482 $ 2,546
- --------------------------------------------------------------------------------
TOTAL RELATED PARTY MONEY MARKET FUND
(COST $2,546) 2,546
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.1%
(COST $101,884) 108,608
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 0.9%
Investment Advisory Fees Payable (37)
Administrator Fees Payable (18)
Custodian Fees Payable (2)
Distribution Fees Payable (2)
Trustees' Fees Payable (1)
Other Assets and Liabilities 1,093
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES 1,033
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 9,748,195 outstanding shares of
beneficial interest 92,666
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 480,726 outstanding shares of
beneficial interest 9,017
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 184,260 outstanding shares of
beneficial interest 1,900
Accumulated net realized loss on investments (666)
Net unrealized appreciation on investments 6,724
- --------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $109,641
- --------------------------------------------------------------------------------
14 APRIL 30, 2004
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($102,642,166 / 9,748,195 SHARES) $10.53
- --------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A
($5,056,933 / 480,726 SHARES) $10.52
- --------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $10.96
- --------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2)
($1,942,271 / 184,260 SHARES) $10.54
- --------------------------------------------------------------------------------
+ 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.
APRIL 30, 2004 15
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.7%
ALABAMA - 11.6%
Alabama State, Municipal Electric Authority,
Power Supply RB, Ser A, MBIA
5.000%, 09/01/33 $1,000 $ 994
Alabama State, Public School & College Authority,
Capital Improvements RB, Ser D
5.750%, 08/01/19 1,150 1,271
Birmingham, Capital Improvement Warrants GO, Ser A
5.550%, 08/01/21 1,000 1,077
Huntsville, Warrants GO, Ser D
5.000%, 11/01/07 1,000 1,080
Montgomery, Warrants GO, Ser A
5.100%, 10/01/09 1,000 1,079
Phoenix City, School Warrants GO, AMBAC
5.650%, 08/01/21 1,000 1,084
Tuscaloosa, Warrants
5.650%, 01/01/17 1,000 1,101
- --------------------------------------------------------------------------------
TOTAL ALABAMA 7,686
- --------------------------------------------------------------------------------
CALIFORNIA - 10.5%
California State GO, FGIC
5.250%, 09/01/30 1,280 1,294
Los Angeles School District GO, Ser 1997-E, MBIA
5.125%, 01/01/27 1,000 1,009
San Diego School District GO, Ser 1998-D, FGIC
5.250%, 07/01/24 1,000 1,036
San Gabriel School District GO, Ser A, FSA
5.375%, 08/01/21 500 530
Southern California, Metropolitan Water
District RB, Ser A
5.100%, 07/01/25 1,000 1,009
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 1,031
- --------------------------------------------------------------------------------
TOTAL CALIFORNIA 6,949
- --------------------------------------------------------------------------------
COLORADO - 3.2%
Denver, City and County GO, Ser B
5.625%, 08/01/07 1,000 1,098
La Plata County School District GO, MBIA
5.250%, 11/01/25 1,000 1,029
- --------------------------------------------------------------------------------
TOTAL COLORADO 2,127
- --------------------------------------------------------------------------------
16 APRIL 30, 2004
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
FLORIDA - 4.1%
Florida State, Board of Education Capital Outlay GO,
Ser A, Pre-Refunded @ 101 (A)
5.650%, 01/01/05 $ 500 $ 519
Florida State, Department of Transportation GO,
Right of Way Project, Ser B
5.500%, 07/01/11 1,000 1,092
Palm Beach County GO, Ser A
5.450%, 08/01/13 1,000 1,083
- --------------------------------------------------------------------------------
TOTAL FLORIDA 2,694
- --------------------------------------------------------------------------------
GEORGIA - 3.3%
Georgia State GO, Ser B
4.000%, 03/01/10 1,000 1,040
6.000%, 03/01/12 1,000 1,157
- --------------------------------------------------------------------------------
TOTAL GEORGIA 2,197
- --------------------------------------------------------------------------------
HAWAII - 1.7%
Hawaii State GO, Ser CO, FGIC
6.000%, 03/01/08 1,000 1,121
- --------------------------------------------------------------------------------
TOTAL HAWAII 1,121
- --------------------------------------------------------------------------------
ILLINOIS - 1.9%
Chicago, Project & Refunding GO, Ser C, FGIC
5.500%, 01/01/19 1,180 1,271
- --------------------------------------------------------------------------------
TOTAL ILLINOIS 1,271
- --------------------------------------------------------------------------------
KANSAS - 1.6%
Kansas State, Department of Transportation RB, Ser A
5.000%, 09/01/06 1,000 1,069
- --------------------------------------------------------------------------------
TOTAL KANSAS 1,069
- --------------------------------------------------------------------------------
MASSACHUSETTS - 3.5%
Massachusetts State, Consolidated Loan GO,
Ser A, Pre-Refunded @ 101 (A)
6.000%, 02/01/10 1,000 1,151
6.000%, 02/01/10 1,000 1,152
- --------------------------------------------------------------------------------
TOTAL MASSACHUSETTS 2,303
- --------------------------------------------------------------------------------
MINNESOTA - 0.8%
Minnesota State, Public Facilities Authority RB,
Water Pollution Control, Ser A
6.000%, 03/01/09 500 518
- --------------------------------------------------------------------------------
TOTAL MINNESOTA 518
- --------------------------------------------------------------------------------
APRIL 30, 2004 17
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
NEVADA - 1.6%
Clark County GO
6.000%, 07/01/06 $1,000 $ 1,080
- --------------------------------------------------------------------------------
TOTAL NEVADA 1,080
- --------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.6%
New Hampshire State RB, MBIA
5.250%, 08/15/19 1,000 1,072
- --------------------------------------------------------------------------------
TOTAL NEW HAMPSHIRE 1,072
- --------------------------------------------------------------------------------
NEW JERSEY - 1.7%
New Jersey State GO, Ser F
5.500%, 08/01/11 1,000 1,117
- --------------------------------------------------------------------------------
TOTAL NEW JERSEY 1,117
- --------------------------------------------------------------------------------
NEW YORK - 9.0%
Brookhaven GO, FGIC
5.500%, 10/01/13 500 551
New York City GO, Ser C, MBIA
5.375%, 11/15/17 1,000 1,086
New York City Transitional Authority RB, Ser C, FGIC
5.250%, 08/01/14 1,000 1,086
New York State GO, Ser A, Pre-Refunded @ 101 (A)
5.875%, 03/15/05 1,000 1,050
New York State GO, Ser F
5.250%, 09/15/13 500 536
New York State, Environmental Water Facilities RB,
Pooled Financing Program, Ser F
5.250%, 11/15/20 500 530
Triborough, Bridge & Tunnel Authority RB,
Ser A, Pre-Refunded @ 100.5 (A)
5.250%, 07/01/09 1,000 1,117
- --------------------------------------------------------------------------------
TOTAL NEW YORK 5,956
- --------------------------------------------------------------------------------
NORTH CAROLINA - 6.8%
Burlington GO, AMBAC
5.200%, 02/01/13 1,650 1,784
Charlotte, Water & Sewer Systems RB
5.125%, 06/01/26 1,000 1,015
Winston-Salem, Water & Sewer Systems RB,
Pre-Refunded @ 101 (A)
5.250%, 06/01/11 1,500 1,679
- --------------------------------------------------------------------------------
TOTAL NORTH CAROLINA 4,478
- --------------------------------------------------------------------------------
18 APRIL 30, 2004
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
OHIO - 4.0%
Columbus, City School District, GO, FGIC
5.000%, 12/01/28 $1,000 $ 1,005
Ohio State, Building Authority RB, State Facilities
Adult Correctional Facilities, Ser A, FSA
5.500%, 10/01/13 1,000 1,104
Pickerington, Local School District GO, FGIC
5.250%, 12/01/20 500 524
- --------------------------------------------------------------------------------
TOTAL OHIO 2,633
- --------------------------------------------------------------------------------
OREGON - 1.5%
Oregon State, Alternative Energy Project GO, Ser E
5.800%, 07/01/07 1,000 1,007
- --------------------------------------------------------------------------------
TOTAL OREGON 1,007
- --------------------------------------------------------------------------------
PENNSYLVANIA - 1.6%
Pennsylvania State, Intergovernmental Authority ST,
Philadelphia Funding Project, FGIC
5.250%, 06/15/15 1,000 1,066
- --------------------------------------------------------------------------------
TOTAL PENNSYLVANIA 1,066
- --------------------------------------------------------------------------------
SOUTH CAROLINA - 3.3%
Greenville County, School District RB
6.000%, 12/01/21 1,000 1,097
Lancaster County, School District GO, FSA
5.100%, 03/01/15 1,000 1,059
- --------------------------------------------------------------------------------
TOTAL SOUTH CAROLINA 2,156
- --------------------------------------------------------------------------------
TEXAS - 11.9%
Canyon, Independent School District GO, Ser A, PSF
5.375%, 02/15/24 1,000 1,037
Frisco, Independent School District GO, PSF
5.125%, 08/15/30 1,000 1,007
Grand Prairie, Independent School District GO, FSA
5.375%, 02/15/18 1,820 1,957
Lamar, Consolidated Independent School District GO,
PSF
5.500%, 02/15/15 500 542
Leander, Independent School District GO, PSF
5.375%, 08/15/19 1,000 1,065
Mesquite, Independent School District GO, PSF
5.500%, 08/15/21 1,160 1,242
Williamson County GO, FSA
5.250%, 02/15/27 1,040 1,061
- --------------------------------------------------------------------------------
TOTAL TEXAS 7,911
- --------------------------------------------------------------------------------
APRIL 30, 2004 19
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE AMT. VALUE
DESCRIPTION (000)/SHARES (000)
- --------------------------------------------------------------------------------
UTAH - 1.6%
Utah State, Intermountain Power Agency RB,
Ser B, MBIA ETM
6.000%, 07/01/06 $1,000 $ 1,088
- --------------------------------------------------------------------------------
TOTAL UTAH 1,088
- --------------------------------------------------------------------------------
VIRGINIA - 5.8%
Bristol Virginia Utility System RB, MBIA
5.250%, 07/15/26 1,850 1,894
Newport News GO, Ser A, MBIA, Pre-Refunded
@ 102 (A)
5.625%, 07/01/05 795 850
Virginia, Commonwealth Transportation Board RB,
Northern Virginia Transportation Program, Ser A
5.500%, 05/15/15 1,000 1,102
- --------------------------------------------------------------------------------
TOTAL VIRGINIA 3,846
- --------------------------------------------------------------------------------
WASHINGTON - 1.7%
Washington State GO, Ser B
6.000%, 01/01/13 1,000 1,131
- --------------------------------------------------------------------------------
TOTAL WASHINGTON 1,131
- --------------------------------------------------------------------------------
WEST VIRGINIA - 1.7%
West Virginia State GO, State Road Project, FGIC
5.625%, 06/01/18 1,000 1,099
- --------------------------------------------------------------------------------
TOTAL WEST VIRGINIA 1,099
- --------------------------------------------------------------------------------
WISCONSIN - 1.7%
Milwaukee GO, Ser T, Pre-Refunded @ 100 (A)
5.250%, 09/01/11 1,000 1,115
- --------------------------------------------------------------------------------
TOTAL WISCONSIN 1,115
- --------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $61,935) 64,690
- --------------------------------------------------------------------------------
RELATED PARTY MONEY MARKET FUND - 1.3%
Expedition Tax-Free Money Market Fund+ 900,491 900
TOTAL RELATED PARTY MONEY MARKET FUND
(COST $900) 900
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.0%
(COST $62,835) 65,590
- --------------------------------------------------------------------------------
20 APRIL 30, 2004
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 1.0%
Investment Advisory Fees Payable $ (22)
Administrator Fees Payable (11)
Trustees' Fees Payable (1)
Custodian Fees Payable (1)
Other Assets and Liabilities, Net 666
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES 631
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 6,215,021 outstanding shares of
beneficial interest 62,716
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 25,966 outstanding shares of
beneficial interest 236
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 20,927 outstanding shares of
beneficial interest 222
Undistributed net investment income 31
Accumulated net realized gain on investments 261
Net unrealized appreciation on investments 2,755
- --------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $66,221
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2004 21
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($65,725,712 / 6,215,021 SHARES) $10.58
- --------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS A
($274,421 / 25,966 SHARES) $10.57
- --------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $11.01
- --------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS B (2)
($221,194 / 20,927 SHARES) $10.57
- --------------------------------------------------------------------------------
+ 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
22 APRIL 30, 2004
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER - 62.0%
BANKS - 2.5%
Wells Fargo
1.000%, 05/25/04 $ 15,000 $ 14,990
- --------------------------------------------------------------------------------
TOTAL BANKS 14,990
- --------------------------------------------------------------------------------
BROKER/DEALERS - 8.4%
Bear Stearns
1.020%, 05/21/04 20,000 19,989
Goldman Sachs
1.120%, 08/24/04 25,000 24,910
Merrill Lynch
1.000%, 05/21/04 6,000 5,997
- --------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 50,896
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 15.6%
American General Finance
1.030%, 06/18/04 15,000 14,979
1.050%, 07/28/04 12,000 11,969
Citigroup
1.030%, 06/01/04 7,000 6,994
1.030%, 06/07/04 10,000 9,989
General Electric Capital
1.020%, 05/18/04 15,000 14,993
1.030%, 05/20/04 10,000 9,995
Toyota Motor Credit
1.020%, 05/10/04 10,000 9,997
1.030%, 06/15/04 15,000 14,981
- --------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 93,897
- --------------------------------------------------------------------------------
ELECTRICAL SERVICES - 3.9%
Southern
1.010%, 05/25/04 23,500 23,484
- --------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 23,484
- --------------------------------------------------------------------------------
FUNDING CORPORATIONS - 10.6%
Falcon Asset Securitization
1.030%, 05/06/04 10,000 9,999
1.030%, 05/27/04 5,000 4,996
1.030%, 06/01/04 10,000 9,991
Preferred Receivable Funding
1.030%, 05/12/04 8,000 7,997
1.030%, 05/25/04 5,000 4,997
APRIL 30, 2004 23
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
Receivables Capital
1.030%, 05/14/04 $ 6,000 $ 5,998
1.040%, 06/03/04 15,000 14,986
1.060%, 07/15/04 5,000 4,989
- --------------------------------------------------------------------------------
TOTAL FUNDING CORPORATIONS 63,953
- --------------------------------------------------------------------------------
LEASING & RENTING - 4.1%
International Lease Finance
1.010%, 05/24/04 15,000 14,991
1.030%, 06/08/04 10,000 9,989
- --------------------------------------------------------------------------------
TOTAL LEASING & RENTING 24,980
- --------------------------------------------------------------------------------
MULTIMEDIA - 2.3%
Gannett
0.980%, 05/13/04 14,000 13,995
- --------------------------------------------------------------------------------
TOTAL MULTIMEDIA 13,995
- --------------------------------------------------------------------------------
PHARMACEUTICALS - 2.5%
Pfizer
1.000%, 05/21/04 10,000 9,994
1.140%, 10/13/04 5,000 4,974
- --------------------------------------------------------------------------------
TOTAL PHARMACEUTICALS 14,968
- --------------------------------------------------------------------------------
SPECIAL PURPOSE ENTITY - 4.5%
Three Pillars
1.040%, 05/19/04 17,000 16,991
1.040%, 06/15/04 10,028 10,015
- --------------------------------------------------------------------------------
TOTAL SPECIAL PURPOSE ENTITY 27,006
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 4.2%
Verizon
1.000%, 05/06/04 10,520 10,519
1.000%, 05/20/04 15,000 14,992
- --------------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 25,511
- --------------------------------------------------------------------------------
UTILITIES - 3.4%
National Rural Utilities
1.030%, 05/10/04 5,600 5,599
1.030%, 05/17/04 15,000 14,993
- --------------------------------------------------------------------------------
TOTAL UTILITIES 20,592
- --------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(COST $374,272) 374,272
- --------------------------------------------------------------------------------
24 APRIL 30, 2004
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.4% FHLMC (B)
1.040%, 06/23/04 $ 10,000 $ 9,985
1.030%, 07/06/04 15,000 14,972
1.050%, 08/23/04 10,000 9,967
FNMA (B)
1.040%, 07/14/04 10,000 9,978
SLMA (A)
1.025%, 09/16/04 20,000 20,000
1.055%, 10/21/04 10,000 10,000
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $74,902) 74,902
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 12.3%
BANKS - 4.2%
Bank of America
6.625%, 06/15/04 8,600 8,656
6.125%, 07/15/04 2,138 2,160
7.875%, 05/16/05 3,000 3,188
Wachovia
6.625%, 06/15/04 4,298 4,326
6.950%, 11/01/04 2,535 2,605
Wells Fargo
6.625%, 07/15/04 4,500 4,548
- --------------------------------------------------------------------------------
TOTAL BANKS 25,483
- --------------------------------------------------------------------------------
BROKER/DEALERS - 3.4%
Bear Stearns
6.625%, 10/01/04 2,199 2,247
Merrill Lynch
6.000%, 11/15/04 7,700 7,887
Merrill Lynch, Ser B, MTN
5.350%, 06/15/04 4,450 4,473
4.540%, 03/08/05 6,000 6,157
- --------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 20,764
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 2.5%
Associates Corporation of North America, Ser G, MTN
8.580%, 11/23/04 5,000 5,196
General Electric Capital, Ser A, MTN
4.250%, 01/28/05 2,000 2,044
International Lease Finance, Ser M, MTN
5.540%, 03/21/05 2,000 2,073
National Rural
5.250%, 07/15/04 2,000 2,017
5.500%, 01/15/05 2,625 2,699
Wells Fargo Financial
5.450%, 05/03/04 1,000 1,000
- --------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 15,029
- --------------------------------------------------------------------------------
APRIL 30, 2004 25
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
SHARES/FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
ELECTRICAL SERVICES - 2.2%
Alabama Power, Ser N
4.875%, 09/01/04 $ 12,985 $ 13,135
- --------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 13,135
- --------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $74,411) 74,411
- --------------------------------------------------------------------------------
MONEY MARKET FUND - 0.8%
Financial Square Government Money Market Fund 4,964,267 4,964
- --------------------------------------------------------------------------------
TOTAL MONEY MARKET FUND
(COST $4,964) 4,964
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 12.3%
Deutsche Bank
0.93% dated 04/30/04, to be repurchased
on 05/03/04, repurchase price $74,475,771
(collateralized by U.S. Treasury obligations,
total market value $75,960,609) $74,470 74,470
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $74,470) 74,470
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.8%
(COST $603,019) 603,019
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 0.2%
Investment Advisory Fees Payable (92)
Shareholder Servicing Fees Payable (78)
Administrator Fees Payable (75)
Custodian Fees Payable (10)
Trustees' Fees Payable (7)
Other Assets and Liabilities, Net 1,189
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES 927
- --------------------------------------------------------------------------------
26 APRIL 30, 2004
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 235,423,571 outstanding shares of
beneficial interest $235,422
Portfolio Capital of Investment Service Shares
(unlimited authorization -- no par value)
based on 306,474,269 outstanding shares of
beneficial interest 306,473
Portfolio Capital of Investment Sweep Class Shares
(unlimited authorization -- no par value)
based on 62,052,005 outstanding shares of
beneficial interest 62,050
Accumulated net realized gain on investments 1
- --------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $603,946
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($235,427,339 / 235,423,571 SHARES) $1.00
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SERVICE SHARES
($306,466,642 / 306,474,269 SHARES) $1.00
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
SWEEP CLASS SHARES
($62,051,962 / 62,052,005 SHARES) $1.00
- --------------------------------------------------------------------------------
(A) Variable Rate Security -- The rate reported is the rate in effect on April
30, 2004.
(B) The rate reported is the effective yield at time of purchase.
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
Ser -- Series
SLMA -- Student Loan Marketing Association
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2004 27
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
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 $ 2,049
Montgomery County, Special Care Financing
Authority RB, VHA Incorporated Project,
Ser H, AMBAC (A) (B)
1.120%, 12/01/30 1,200 1,200
- --------------------------------------------------------------------------------
TOTAL ALABAMA 3,249
- --------------------------------------------------------------------------------
CALIFORNIA - 1.6%
ABAG, Financial Authority for Non-Profit
Corporations RB, Jewish Community Center
Project (A) (B) (C)
1.100%, 11/15/31 2,000 2,000
Anaheim, Multi-Family Housing Finance RB,
Heritage Village Apartments,
Ser A, FNMA (A) (B)
1.090%, 07/15/33 1,100 1,100
- --------------------------------------------------------------------------------
TOTAL CALIFORNIA 3,100
- --------------------------------------------------------------------------------
COLORADO - 4.9%
Adams County, Multi-Family Housing Revenue
Authority RB, Hunters Cove Project,
Ser A (A) (B)
1.100%, 01/15/14 700 700
Arapahoe County, Water & Waste Authority RB,
Ser A (A) (B) (C)
1.120%, 12/01/33 4,000 4,000
Denver City & County, Multi-Family Housing
Authority RB, Cottonwood Creek Project,
Ser A (A) (B)
1.100%, 04/15/14 1,000 1,000
Denver City & County, Multi-Family Housing
Authority RB, Ogden Residences Project
(A) (B) (C)
1.100%, 12/01/29 200 200
SBC Metropolitan District GO (A) (B) (C)
1.190%, 12/01/17 1,900 1,900
Thornton, Multi-Family Revenue RB,
Quail Ridge Project, Ser A (A) (B) (C)
1.130%, 04/01/10 1,550 1,550
- --------------------------------------------------------------------------------
TOTAL COLORADO 9,350
- --------------------------------------------------------------------------------
DELAWARE - 0.4%
Delaware State, Economic Development Authority RB,
School House Project (A) (B) (C)
1.200%, 12/01/15 750 750
- --------------------------------------------------------------------------------
TOTAL DELAWARE 750
- --------------------------------------------------------------------------------
28 APRIL 30, 2004
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
FLORIDA - 7.1%
Alachua County, Health Facilities Authority RB,
Oak Hammock University Project,
Ser A (A) (B) (C)
1.100%, 10/01/32 $1,100 $ 1,100
Florida Housing Finance Agency RB,
Multi-Family Housing Island Club Project,
Ser JA (A) (B)
1.080%, 07/01/31 5,000 5,000
Florida Housing Finance Agency RB,
Multi-Family Housing River Oaks Apartment Project,
Ser TT, FHLMC (A) (B)
1.080%, 12/01/29 2,000 2,000
Florida State, Multi-Family Housing Authority RB,
Country Club Project, FHLMC (A) (B)
1.170%, 12/01/12 2,000 2,000
Miami-Dade County, Industrial Development
Authority RB, Holy Cross Academy Project
(A) (B) (C)
1.090%, 07/01/20 800 800
Orange County, Industrial Development Authority RB,
Orlando Hawaiian Motel (A) (B) (C)
1.700%, 10/01/15 690 690
Palm Beach County RB, Jewish Community Campus
Project (A) (B) (C)
1.100%, 03/01/30 1,800 1,800
- --------------------------------------------------------------------------------
TOTAL FLORIDA 13,390
- --------------------------------------------------------------------------------
GEORGIA - 9.5%
Dalton, Utilities Authority RB,
Ser A02, FSA (A) (B)
1.150%, 01/01/12 2,075 2,075
Dekalb County, Development Authority RB,
American Cancer Society (A) (B) (C)
1.090%, 09/01/17 1,200 1,200
Dekalb County, Multi-Family Housing Authority RB,
Winters Creek Apartments Project, FNMA (A) (B)
1.080%, 06/15/25 400 400
Dekalb County, Multi-Family Housing Authority RB,
Woodhills Apartment Project (A) (B) (C)
1.120%, 12/01/07 4,300 4,300
Floyd County, Development Authority RB,
Berry College Project (A) (B) (C)
1.100%, 08/01/22 2,600 2,600
Fulton County, Multi-Family Housing Authority RB,
Champions Green Apartment Project, Ser B (A) (B)
1.080%, 10/01/25 2,900 2,900
APRIL 30, 2004 29
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
Fulton County, Multi-Family Housing Authority RB,
Hampton Hills Apartment Project, FHLMC (A) (B)
1.080%, 06/01/23 $ 600 $ 600
Macon-Bibb County, Hospital Authority RB,
Medical Control Center Project (A) (B) (C)
1.090%, 12/01/18 1,700 1,700
Marietta Multi-Family Housing Authority RB,
Winterset Apartments Project (A) (B) (C)
1.080%, 02/01/26 2,300 2,300
- --------------------------------------------------------------------------------
TOTAL GEORGIA 18,075
- --------------------------------------------------------------------------------
IDAHO - 0.5%
Idaho State, Health Facilities Authority RB,
St. Lukes Regional Medical Center Project
(A) (B) (C)
1.100%, 05/01/22 950 950
- --------------------------------------------------------------------------------
TOTAL IDAHO 950
- --------------------------------------------------------------------------------
ILLINOIS - 11.2%
Central Lake RB, Merlots, Ser B18, AMBAC (A) (B)
1.150%, 05/01/20 900 900
Cook County GO, Merlots, Ser B11, AMBAC (A) (B)
1.150%, 11/15/25 500 500
Illinois Educational Facilities Authority RB,
Concordia University River Project (A) (B) (C)
1.130%, 10/01/31 850 850
Illinois Educational Facilities RB, Art
Institute of Chicago (A) (B)
1.080%, 03/01/34 1,100 1,100
Illinois Health Facilities Authority RB,
Bromenn Healthcare Project (A) (B) (C)
1.100%, 08/15/32 700 700
Illinois Health Facilities Authority RB,
Northwestern Memorial Hospital (A) (B)
1.100%, 08/15/09 1,300 1,300
Illinois State, Development Finance Authority RB,
AMBAC (A) (B)
1.100%, 09/01/32 2,000 2,000
Illinois State, Development Finance Authority RB,
Goodman Theater Project (A) (B) (C)
1.110%, 12/01/33 2,000 2,000
Illinois State, Development Finance Authority RB,
Wbez Alliance Incorporated Project (A) (B) (C)
1.080%, 03/01/29 1,800 1,800
Illinois State, Education Facility Authority RB,
Art Institute of Chicago (A) (B)
1.080%, 03/01/27 1,200 1,200
30 APRIL 30, 2004
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
Oakbrook Terrace, Industrial Development
Authority RB, Oakbrook Terrace Atrium Project
(A) (B) (C)
1.100%, 12/01/25 $2,000 $ 2,000
Orland Park, Industrial Development Authority RB,
Ser A (A) (B) (C)
1.400%, 12/28/04 790 790
Schaumburg GO, Ser B (A) (B)
1.100%, 12/01/15 1,700 1,700
Winnebago & Boone County, Illinois School
District No 205, TAN
2.270%, 10/28/04 2,250 2,256
2.280%, 10/29/04 2,000 2,009
- --------------------------------------------------------------------------------
TOTAL ILLINOIS 21,105
- --------------------------------------------------------------------------------
INDIANA - 3.9%
Goshen Community Schools, TAN
1.900%, 12/31/04 1,490 1,495
Indiana State, Development Finance Authority RB,
Cathedral High School Project (A) (B) (C)
1.150%, 09/01/26 1,000 1,000
Indiana State, Educational Facilities Authority RB,
Evansville University Project, Ser B (A) (B) (C)
1.230%, 12/01/29 2,000 2,000
Indiana State, Health Facilities Financing
Authority RB, Capital Access Project
(A) (B) (C)
1.090%, 04/01/13 1,300 1,300
Spencer Owen Independent Community Schools, TAN
2.000%, 12/31/04 1,500 1,508
- --------------------------------------------------------------------------------
TOTAL INDIANA 7,303
- --------------------------------------------------------------------------------
IOWA - 5.2%
Hills Healthcare RB, Mercy Community Hospital
Project (A) (B) (C)
1.100%, 08/01/32 1,300 1,300
Iowa Higher Education Loan Authority RB,
Private College Facilities, Loras Project
(A) (B) (C)
1.100%, 11/01/30 100 100
Iowa Higher Education Loan Authority RB,
Private College, Des Moines Project (A) (B) (C)
1.150%, 10/01/33 1,200 1,200
Iowa State, Finance Authority RB, Carroll Kuemper
Private School Project (A) (B) (C)
1.150%, 06/01/28 1,200 1,200
Iowa State, Finance Authority RB, Drake University
Project (A) (B) (C)
1.150%, 07/01/31 600 600
APRIL 30, 2004 31
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
Iowa State, Health Care Facilities Authority RB,
Care Initiatives Project (A) (B) (C)
1.150%, 11/01/32 $1,050 $ 1,050
Iowa State, Higher Education Loan Authority RB,
Wartburg Project, (A) (B) (C)
1.150%, 03/01/30 2,500 2,500
Johnston Community School District RB (A) (B)
3.250%, 06/01/04 1,870 1,873
- --------------------------------------------------------------------------------
TOTAL IOWA 9,823
- --------------------------------------------------------------------------------
KANSAS - 2.4%
Kansas State Development Finance Authority RB,
Hays Medical Center, Ser N (A) (B) (C)
1.150%, 05/15/26 200 200
Kansas State Development Finance Authority RB,
Kansas Department Administration, Ser J1 (A) (B)
1.100%, 12/01/18 1,000 1,000
Kansas State Development Finance Authority RB,
Village Shalom Obligation Group, Ser BB
(A) (B) (C)
1.100%, 11/15/28 1,000 1,000
Prairie Village RB, Corinth Place Apartments
Project (A) (B)
1.080%, 11/01/30 2,350 2,350
- --------------------------------------------------------------------------------
TOTAL KANSAS 4,550
- --------------------------------------------------------------------------------
KENTUCKY - 3.4%
Kentucky Rural Water Financial Construction
RB (A) (B)
1.050%, 10/01/06 1,900 1,900
Kentucky State, TRAN
2.000%, 06/30/04 2,500 2,505
Lexington-Fayette Urban County, Government
Industrial Building Authority RB, American Horse
Shows Association Project (A) (B) (C)
1.230%, 12/01/18 1,975 1,975
- --------------------------------------------------------------------------------
TOTAL KENTUCKY 6,380
- --------------------------------------------------------------------------------
LOUISIANA - 1.3%
East Baton Rouge RB, Parish Pollution Control
Authority, Rhone-Poulenc Project (A) (B) (C)
1.120%, 06/01/11 1,400 1,400
Louisiana Public Facilities Authority Hospital RB,
St. Francis Medical Center Project, FSA (A) (B)
5.300%, 07/01/09 1,000 1,027
- --------------------------------------------------------------------------------
TOTAL LOUISIANA 2,427
- --------------------------------------------------------------------------------
32 APRIL 30, 2004
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS - 3.0%
Chicopee Development Finance Authority BAN
2.000%, 11/19/04 $3,536 $ 3,552
Massachusetts State, Development Finance Agency RB,
Marino Foundation Project (A) (B) (C)
1.100%, 07/01/21 2,100 2,100
- --------------------------------------------------------------------------------
TOTAL MASSACHUSETTS 5,652
- --------------------------------------------------------------------------------
MICHIGAN - 5.5%
Dearborn School District GO (A) (B)
3.000%, 05/01/05 1,000 1,019
Eastern Michigan University RB (A) (B)
1.100%, 06/01/27 1,300 1,300
Farmington Hills Michigan Hospital Finance
Authority RB, Botsford General Hospital,
Ser B, MBIA (A) (B)
1.150%, 02/15/16 250 250
Jackson County, Economic Development Authority RB,
Thrifty Leoni Project (A) (B) (C)
1.090%, 12/01/14 1,000 1,000
Michigan State Housing Development Authority RB,
Courtyards of Taylor Project, Ser A, FNMA (A) (B)
1.080%, 08/15/32 500 500
Michigan State Job Development Authority RB,
East Lansing Residential Project (A) (B) (C)
1.020%, 12/01/14 900 900
Michigan State Strategic Fund RB, Van Andel Research
Institution Project (A) (B) (C)
1.090%, 11/01/27 3,400 3,400
Pinckney Community Schools,
State Aid Anticipation Notes
1.500%, 08/20/04 2,000 2,002
- --------------------------------------------------------------------------------
TOTAL MICHIGAN 10,371
- --------------------------------------------------------------------------------
MINNESOTA - 2.0%
Arden Hills RB, Presbyterian Homes, Ser A (A) (B) (C)
1.150%, 09/01/29 650 650
Mankato, Revenue Authority RB, Bethany Lutheran
College Project, Ser B, (A) (B) (C)
1.150%, 11/01/15 1,740 1,740
Minneapolis & St. Paul, Housing & Redevelopment
Authority RB, Childrens Healthcare System Project,
Ser B, FSA (A) (B)
1.100%, 08/15/25 500 500
Minnesota State Higher Educational Facilities RB,
St. Olaf College, Series 5H (A) (B) (C)
1.100%, 10/01/30 1,000 1,000
- --------------------------------------------------------------------------------
TOTAL MINNESOTA 3,890
- --------------------------------------------------------------------------------
APRIL 30, 2004 33
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
MISSOURI - 5.1%
Clayton, Industrial Development Authority RB,
Bailey Court Project (A) (B) (C)
1.240%, 01/01/09 $ 500 $ 500
Kansas City, Industrial Development Authority RB,
Bethesda Living Center Project,
Ser A (A) (B) (C)
1.120%, 08/01/31 2,200 2,200
Kansas City, Industrial Development Authority RB,
Ewing Marion Kauffman, Ser A (A) (B)
1.100%, 04/01/27 1,100 1,100
Missouri State, Health & Educational Facilities
Authority RB, Drury College Project
(A) (B) (C)
1.150%, 08/15/24 200 200
Missouri State, Health & Educational Facilities
Authority RB, Drury University Project
(A) (B) (C)
1.150%, 08/15/28 1,000 1,000
Missouri State, Health & Educational Facilities
Authority RB, Rockhurst University Project
(A) (B) (C)
1.100%, 11/01/32 1,200 1,200
Missouri State, Health & Educational Facilities
Authority RB, Saint Louis University Project,
Ser B (A) (B)
1.150%, 10/01/24 300 300
Missouri State, Health & Educational Facilities
Authority RB, St. Louis University Project
(A) (B)
1.150%, 07/01/32 100 100
Missouri State, Health & Educational Facilities RB,
Saint Francis Medical Center Project,
Ser A (A) (B) (C)
1.100%, 06/01/26 1,200 1,200
Missouri State, Health & Educational Facilities RN
1.150%, 10/29/04 945 945
Saint Louis, Industrial Development Authority RB,
Schnuck Markets Kirkwood Project (A) (B) (C)
1.130%, 12/01/15 900 900
- --------------------------------------------------------------------------------
TOTAL MISSOURI 9,645
- --------------------------------------------------------------------------------
MONTANA - 2.7%
Montana State, Board Investment RB, Municipal
Finance Consolidated-Intercap Project (A) (B)
1.250%, 03/01/25 1,500 1,500
Montana State, Health Facilities Authority RB,
Ser A, FGIC (A) (B)
1.090%, 12/01/15 3,550 3,550
- --------------------------------------------------------------------------------
TOTAL MONTANA 5,050
- --------------------------------------------------------------------------------
34 APRIL 30, 2004
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
NEVADA - 0.2%
Clark County Nevada School District GO,
Ser A, MBIA (A) (B)
7.250%, 06/15/04 $ 350 $ 353
- --------------------------------------------------------------------------------
TOTAL NEVADA 353
- --------------------------------------------------------------------------------
NEW JERSEY - 0.7%
New Jersey Health Care Facilities Authority
RB (A) (B)
5.750%, 08/01/11 1,285 1,307
- --------------------------------------------------------------------------------
TOTAL NEW JERSEY 1,307
- --------------------------------------------------------------------------------
NEW YORK - 0.4%
New York State, Public Improvements Project GO,
Ser A-4 (A) (B) (C)
1.120%, 08/01/21 800 800
- --------------------------------------------------------------------------------
TOTAL NEW YORK 800
- --------------------------------------------------------------------------------
OHIO - 3.7%
American Municipal Power BAN
1.300%, 08/05/04 750 750
1.250%, 12/02/04 1,635 1,635
American Municipal Power BAN, St. Mary's Project
1.200%, 10/07/04 830 830
Cincinnati GO (A) (B)
4.000%, 12/01/04 1,205 1,226
Clermont County, Economic Development Authority RB,
John Q. Hammons Project (A) (B) (C)
1.300%, 05/01/12 655 655
Ohio State Higher Education Facilities RB,
Kenyon College Project (A) (B)
1.130%, 08/01/33 250 250
Stark County, BAN, Ser 2004-1
1.550%, 11/15/04 420 421
Toledo Lucas County, Port Facilities Authority RB,
Toledo Museum of Art Project (A) (B) (C)
1.080%, 09/01/19 1,200 1,200
- --------------------------------------------------------------------------------
TOTAL OHIO 6,967
- --------------------------------------------------------------------------------
OKLAHOMA - 1.1%
Tulsa, Industrial Development Authority RB,
Tulsa County Housing Fund Project (A) (B)
1.180%, 10/01/32 2,000 2,000
- --------------------------------------------------------------------------------
TOTAL OKLAHOMA 2,000
- --------------------------------------------------------------------------------
APRIL 30, 2004 35
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
OREGON - 2.0%
Portland Economic Development RB, Broadway Project,
Ser A, AMBAC (A) (B) (C)
1.120%, 04/01/35 $3,750 $ 3,750
- --------------------------------------------------------------------------------
TOTAL OREGON 3,750
- --------------------------------------------------------------------------------
PENNSYLVANIA - 8.1%
Allegheny County RB, Industrial Development
Authority, Jewish Home & Hospital Project,
Ser B (A) (B) (C)
1.100%, 10/01/26 1,240 1,240
Erie County Hospital Authority RB, Ser 820,
MBIA (A) (B)
1.140%, 07/01/22 3,000 3,000
Lawrence County Industrial Development Authority RB,
Villa Maria Project (A) (B) (C)
1.120%, 07/01/33 1,800 1,800
Montgomery County RB, Kingswood Apartments
Project, Ser A, FNMA (A) (B)
1.060%, 08/15/31 2,450 2,450
Pennsylvania State, Economic Development
Financing Authority RB, Philadelphia Area
Project, Ser J3 (A) (B) (C)
1.140%, 11/01/30 4,100 4,100
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)
1.150%, 11/01/32 1,000 1,000
Philadelphia, Hospital & Higher Education
Facilities Authority RB, Temple East Project,
Ser B (A) (B) (C)
1.110%, 06/01/14 300 300
Temple University, Commonwealth of Higher
Education RN
1.200%, 05/04/04 1,000 1,000
- --------------------------------------------------------------------------------
TOTAL PENNSYLVANIA 15,390
- --------------------------------------------------------------------------------
TENNESSEE - 0.6%
Wilson County, Industrial Development Board RB,
Hartmann Luggage Co. Project (A) (B)
1.180%, 07/01/26 1,100 1,100
- --------------------------------------------------------------------------------
TOTAL TENNESSEE 1,100
- --------------------------------------------------------------------------------
TEXAS - 3.3%
Austin GO, Public Imports (A) (B)
6.000%, 09/01/04 500 508
Carrollton Waterworks & Sewer RB (A) (B)
4.000%, 05/01/04 1,045 1,045
36 APRIL 30, 2004
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
Garland, Health Facilities Authority RB,
Chambrel Club Project (A) (B)
1.080%, 11/15/32 $ 600 $ 600
Texas State, TRAN
2.000%, 08/31/04 4,000 4,011
- --------------------------------------------------------------------------------
TOTAL TEXAS 6,164
- --------------------------------------------------------------------------------
VERMONT - 0.8%
Vermont State, Educational & Health Buildings
Financing Authority RB, Capital Asset Financing
Program, Ser 1 (A) (B) (C)
1.180%, 06/01/22 1,500 1,500
- --------------------------------------------------------------------------------
TOTAL VERMONT 1,500
- --------------------------------------------------------------------------------
WASHINGTON - 2.4%
Seattle, Low Income Housing Authority RB, Foss
Home Project (A) (B) (C)
1.080%, 12/01/24 430 430
Washington State GO, Ser A11, MBIA (A) (B)
1.150%, 06/01/17 1,395 1,395
Washington State, Housing Authority, Museum
History & Industry Project (A) (B) (C)
1.120%, 12/01/33 600 600
Washington State, Housing Finance Commission
Non-Profit RB, Rockwood Retirement
Community (A) (B) (C)
1.120%, 01/01/34 200 200
Washington State, Housing Finance Commission
Non-Profit RB, Tacoma Art Museum Project
(A) (B) (C)
1.150%, 06/01/32 100 100
Washington State, Housing Finance Commission
Non-Profit RB, Pioneer Human Services Project,
Ser A (A) (B) (C)
1.120%, 08/01/19 1,700 1,700
Washington State, Housing Finance Commission
Non-Profit RB, YMCA Columbia/Willamette Project
(A) (B) (C)
1.170%, 08/01/24 100 100
- --------------------------------------------------------------------------------
TOTAL WASHINGTON 4,525
- --------------------------------------------------------------------------------
WEST VIRGINIA - 0.6%
Putnam County, Industrial Development RB,
FMC Corporation Project (A) (B) (C)
1.050%, 10/01/11 1,200 1,200
- --------------------------------------------------------------------------------
TOTAL WEST VIRGINIA 1,200
- --------------------------------------------------------------------------------
APRIL 30, 2004 37
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
WISCONSIN - 4.1%
Milwaukee RB, Montessori Society School
Project (A) (B) (C)
1.200%, 07/01/21 $1,450 $ 1,450
West Salem School District, TRAN
1.750%, 09/01/04 1,400 1,403
Wisconsin State, Health & Educational
Facilities Authority RB, Gundersen Lutheran
Project, Ser A, FSA (A) (B)
1.100%, 12/01/15 1,300 1,300
Wisconsin State, Health & Educational Facilities
Authority RB, Mercy Health Systems Project,
Ser C (A) (B) (C)
1.120%, 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)
1.120%, 08/15/30 1,000 1,000
- --------------------------------------------------------------------------------
TOTAL WISCONSIN 7,753
- --------------------------------------------------------------------------------
MULTI-STATE - 0.4%
Greystone, Municipal Lease Certificate Trust
Authority COP, Ser A (A) (B) (C)
1.260%, 07/01/05 310 310
Greystone, Tax Exempt Certificate Trust
Authority RB, Senior Certificate of Beneficial
Ownership Project (A) (B) (C)
1.230%, 05/01/28 505 505
- --------------------------------------------------------------------------------
TOTAL MULTI-STATE 815
- --------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $188,684) 188,684
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.8%
(COST $188,684) 188,684
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - 0.2%
Investment Advisory Fees Payable (26)
Administrator Fees Payable (24)
Shareholder Servicing Fees Payable (24)
Custodian Fees Payable (3)
Trustees' Fees Payable (2)
Other Assets and Liabilities, Net 535
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES 456
- --------------------------------------------------------------------------------
38 APRIL 30, 2004
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 85,279,213 outstanding shares of
beneficial interest $ 85,278
Portfolio Capital of Investment Investment Service Shares
(unlimited authorization -- no par value)
based on 81,359,347 outstanding shares of
beneficial interest 81,360
Portfolio Capital of Sweep Class Shares
(unlimited authorization -- no par value)
based on 22,522,826 outstanding shares of
beneficial interest 22,522
Accumulated net realized loss on investments (20)
- --------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $189,140
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL SHARES
($85,270,265 / 85,279,213 SHARES) $1.00
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SERVICE SHARES
($81,348,265 / 81,359,347 SHARES) $1.00
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
SWEEP CLASS SHARES
($22,521,404 / 22,522,826 SHARES) $1.00
- --------------------------------------------------------------------------------
(A) Floating rate security.
(B) Put & Demand Feature -- the date reported is the final maturity date, not
the next reset or put date.
(C) Securities are held in conjunction with a letter of credit from a major
bank or financial institution.
ABAG -- Association of Bay Area Governments
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
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RB -- Revenue Bond
RN -- Revenue Notes
Ser -- Series
TAN -- Tax Anticipation Notes
TRAN -- Tax & Revenue Anticipation Notes
VHA -- Veterans Housing Authority
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2004 39
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
For the six months ended April 30, 2004
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND
--------- ------------
INVESTMENT INCOME:
Dividends $1,222 $121
Interest 8 1
------ ----
Total investment income 1,230 122
------ ----
EXPENSES:
Investment advisory fees 694 45
Administrator fees 185 37
Custodian fees 18 1
Distribution fees --
Investment Shares - Class A 10 --
Investment Shares - Class B 77 4
Trustees' fees 3 --
Transfer agent fees 149 47
Professional fees 15 8
Registration fees 12 1
Printing fees 9 1
Other fees 7 1
------ ----
Total expenses 1,179 145
------ ----
Less:
Waiver of investment advisory fees -- (45)
Reimbursement of expenses by
investment adviser -- (22)
------ ----
Net expenses 1,179 78
------ ----
NET INVESTMENT INCOME 51 44
------ ----
Net realized gain on investments 3,751 823
Net change in unrealized appreciation
(depreciation) of investments 3,210 (240)
------ ----
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 6,961 583
------ ----
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $7,012 $627
====== ====
Amounts designated as "--" are $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
40 APRIL 30, 2004
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
For the six months ended April 30, 2004
EXPEDITION EXPEDITION
INVESTMENT TAX-FREE INVESTMENT
GRADE BOND GRADE BOND
FUND FUND
---------- -------------------
INVESTMENT INCOME:
Interest $2,891 $1,568
------ ------
Total investment income 2,891 1,568
------ ------
EXPENSES:
Investment advisory fees 280 179
Administrator fees 112 71
Custodian fees 11 7
Distribution fees --
Investment Shares - Class A 7 --
Investment Shares - Class B 10 1
Trustees' fees 2 1
Transfer agent fees 68 43
Professional fees 12 11
Printing fees 6 3
Registration fees 8 5
Other fees 6 7
------ ------
Total expenses 522 328
------ ------
Less:
Waiver of investment advisory fees (56) (41)
------ ------
Net expenses 466 287
------ ------
NET INVESTMENT INCOME 2,425 1,281
------ ------
Net realized gain on investments 746 261
Net change in unrealized depreciation
of investments (2,499) (1,024)
------ ------
NET REALIZED AND UNREALIZED
LOSS ON INVESTMENTS (1,753) (763)
------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 672 $ 518
====== ======
Amounts designated as "--" are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2004 41
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
For the six months ended April 30, 2004
EXPEDITION
EXPEDITION TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
------------ ------------
INVESTMENT INCOME:
Interest $3,345 $1,028
------ ------
Total investment income 3,345 1,028
------ ------
EXPENSES:
Investment advisory fees 1,224 380
Administrator fees 459 142
Shareholder Servicing Fees --
Investment Service Shares 369 106
Sweep Class Shares 118 44
Custodian fees 61 19
Trustees' fees 8 3
Transfer agent fees 182 50
Registration fees 45 15
Professional fees 31 15
Printing fees 29 9
Other fees 9 4
------ ------
Total expenses 2,535 787
------ ------
Less:
Waiver of investment advisory fees (671) (228)
------ ------
Net expenses 1,864 559
------ ------
NET INVESTMENT INCOME 1,481 469
------ ------
Net realized loss on investments -- (7)
------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $1,481 $ 462
====== ======
Amounts designated as "--" are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
42 APRIL 30, 2004
STATEMENTS OF CHANGES IN NET ASSETS (000)
For the six months ended April 30, 2004 (Unaudited)
and the year ended October 31, 2003
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND
---------------------- --------------------
Period Year Period Year
Ended Ended Ended Ended
04/30/04 10/31/03 04/30/04 10/31/03
-------- -------- -------- --------
OPERATIONS:
Investment income $ 51 $ 710 $ 44 $ 86
Net realized gain (loss) on investments 3,751 (22,249) 823 (2,349)
Net change in unrealized appreciation
(depreciation) of investments 3,210 53,720 (240) 4,184
-------- -------- ------- -------
Net increase in net assets resulting
from operations 7,012 32,181 627 1,921
-------- -------- ------- -------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income:
Institutional Shares (79) (775) (27) (106)
Investment Shares - Class A -- (10) (1) (2)
Investment Shares - Class B -- -- -- --
Tax return of capital:
Institutional Shares -- -- -- (4)
Investment Shares - Class A -- -- -- --
Investment Shares - Class B -- -- -- --
-------- -------- ------- -------
Total dividends (79) (785) (28) (112)
-------- -------- ------- -------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 5,900 11,892 -- 39
Shares issued in lieu of cash distributions 24 397 -- --
Payments for redemptions (12,816) (56,560) (3,905) (3,157)
-------- -------- ------- -------
Decrease in net assets from
Institutional Shares transactions (6,892) (44,271) (3,905) (3,118)
-------- -------- ------- -------
Investment Shares - Class A:
Proceeds from sales 309 1,872 29 26
Shares issued in lieu of cash distributions -- 9 -- 1
Payments for redemptions (2,079) (1,610) (19) (100)
-------- -------- ------- -------
Increase (decrease) in net assets from
Investment Shares - Class A transactions (1,770) 271 10 (73)
-------- -------- ------- -------
Investment Shares - Class B:
Proceeds from sales 942 1,577 77 80
Shares issued in lieu of cash distributions -- -- -- --
Payments for redemptions (1,386) (2,176) (108) (164)
-------- -------- ------- -------
Decrease in net assets from
Investment Shares - Class B transactions (444) (599) (31) (84)
-------- -------- ------- -------
Total decrease in net assets from
capital share transactions (9,106) (44,599) (3,926) (3,275)
-------- -------- ------- -------
Total decrease in net assets (2,173) (13,203) (3,327) (1,466)
-------- -------- ------- -------
NET ASSETS AT BEGINNING OF PERIOD 180,076 193,279 13,414 14,880
-------- -------- ------- -------
NET ASSETS AT END OF PERIOD $177,903 $180,076 $10,087 $13,414
======== ======== ======= =======
Undistributed net investment income
included in net assets at period end $ 117 $ 145 $ 16 $ --
======== ======== ======= =======
(1) See note 5 in the notes to financial statements for additional information.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2004 43
STATEMENTS OF CHANGES IN NET ASSETS (000)
For the six months ended April 30, 2004 (Unaudited)
and the year ended October 31, 2003
EXPEDITION
EXPEDITION TAX-FREE
INVESTMENT GRADE INVESTMENT GRADE
BOND FUND BOND FUND
---------------------- ---------------------
Period Year Period Year
Ended Ended Ended Ended
04/30/04 10/31/03 04/30/04 10/31/03
-------- -------- -------- --------
OPERATIONS:
Investment income $ 2,425 $ 5,265 $ 1,281 $ 2,668
Net realized gain on investments 746 776 261 1,425
Net change in unrealized depreciation
of investments (2,499) (1,476) (1,024) (711)
-------- -------- ------- -------
Net increase in net assets resulting
from operations 672 4,565 518 3,382
-------- -------- ------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Institutional Shares (2,301) (5,021) (1,260) (2,652)
Investment Shares - Class A (110) (231) (4) (15)
Investment Shares - Class B (35) (73) (3) (6)
Realized capital gains:
Institutional Shares -- -- (1,416) (1,267)
Investment Shares - Class A -- -- (4) (14)
Investment Shares - Class B -- -- (4) (4)
-------- -------- ------- -------
Total dividends and distributions (2,446) (5,325) (2,691) (3,958)
-------- -------- ------- -------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 6,292 27,319 3,140 10,476
Shares issued in lieu of cash distributions 1,323 2,852 927 989
Payments for redemptions (9,950) (33,137) (7,395) (14,752)
-------- -------- ------- -------
Decrease in net assets from
Institutional Shares transactions (2,335) (2,966) (3,328) (3,287)
-------- -------- ------- -------
Investment Shares - Class A:
Proceeds from sales 46 489 216 182
Shares issued in lieu of cash distributions 87 179 8 28
Payments for redemptions (403) (525) (246) (723)
-------- -------- ------- -------
Increase (decrease) in net assets from
Investment Shares - Class A transactions (270) 143 (22) (513)
-------- -------- ------- -------
Investment Shares - Class B:
Proceeds from sales 197 669 3 41
Shares issued in lieu of cash distributions 32 67 6 7
Payments for redemptions (383) (510) (1) (51)
-------- -------- ------- -------
Increase (decrease) in net assets from
Investment Shares - Class B transactions (154) 226 8 (3)
-------- -------- ------- -------
Total decrease in net assets from
capital share transactions (2,759) (2,597) (3,342) (3,803)
-------- -------- ------- -------
Total decrease in net assets (4,533) (3,357) (5,515) (4,379)
-------- -------- ------- -------
NET ASSETS AT BEGINNING OF PERIOD 114,174 117,531 71,736 76,115
-------- -------- ------- -------
NET ASSETS AT END OF PERIOD $109,641 $114,174 $66,221 $71,736
======== ======== ======= =======
Undistributed net investment income
included in net assets at period end $ -- $ -- $ 31 $ 17
======== ======== ======= =======
(1) See note 5 in the notes to financial statements for additional information.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
44 APRIL 30, 2004
STATEMENTS OF CHANGES IN NET ASSETS (000)
For the six months ended April 30, 2004 (Unaudited)
and the year ended October 31, 2003
EXPEDITION
EXPEDITION TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
---------------------- ----------------------
Period Year Period Year
Ended Ended Ended Ended
04/30/04 10/31/03 04/30/04 10/31/03
-------- -------- -------- --------
OPERATIONS:
Investment income $ 1,481 $ 4,347 $ 469 $ 1,321
Net realized gain (loss) on investments -- 24 (7) (3)
-------- -------- --------- ---------
Net increase in net assets resulting
from operations 1,481 4,371 462 1,318
-------- -------- --------- ---------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income:
Institutional Shares (814) (2,064) (264) (727)
Investment Service Shares (582) (2,081) (171) (512)
Sweep Class Shares (87) (249) (34) (81)
-------- -------- --------- ---------
Total dividends (1,483) (4,394) (469) (1,320)
-------- -------- --------- ---------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 582,370 831,364 129,231 395,054
Shares issued in lieu of cash distributions 27 90 -- --
Payments for redemptions (598,181) (818,571) (128,075) (408,728)
-------- -------- --------- ---------
Increase (decrease) in net assets from
Institutional Shares transactions (15,784) 12,883 1,156 (13,674)
-------- -------- --------- ---------
Investment Service Shares:
Proceeds from sales 392,870 646,623 98,653 231,192
Shares issued in lieu of cash distributions 46 214 1 4
Payments for redemptions (400,293) (689,955) (104,364) (220,987)
-------- -------- --------- ---------
Increase (decrease) in net assets from
Investment Service Shares transactions (7,377) (43,118) (5,710) 10,209
-------- -------- --------- ---------
Sweep Class Shares:
Proceeds from sales 108,314 153,774 29,572 62,132
Shares issued in lieu of cash distributions 81 233 8 19
Payments for redemptions (99,843) (150,961) (29,794) (47,843)
-------- -------- --------- ---------
Increase (decrease) in net assets from
Sweep Class Shares transactions 8,552 3,046 (214) 14,308
-------- -------- --------- ---------
Total increase (decrease) in net assets from
capital share transactions (14,609) (27,189) (4,768) 10,843
-------- -------- --------- ---------
Total increase (decrease) in net assets (14,611) (27,212) (4,775) 10,841
-------- -------- --------- ---------
NET ASSETS AT BEGINNING OF PERIOD 618,557 645,769 193,915 183,074
-------- -------- --------- ---------
NET ASSETS AT END OF PERIOD $603,946 $618,557 $ 189,140 $ 193,915
======== ======== ========= =========
Undistributed net investment income
included in net assets at period end $ -- $ 2 $ -- $ --
======== ======== ========= =========
(1) See note 5 in the notes to financial statements for additional information.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2004 45
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
- --------------------------------------------------------------------------------------------------------------------
NET NET REALIZED AND DIVIDENDS
ASSET VALUE, INVESTMENT UNREALIZED TOTAL FROM NET DISTRIBUTIONS
BEGINNING INCOME GAINS OR (LOSSES) FROM NVESTMENT FROM
OF PERIOD (LOSS) ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
- --------------------------------------------------------------------------------------------------------------------
EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $ 7.39 $ -- $ 0.28 $ 0.28 $ --** $ --
2003 6.14 0.04 1.24 1.28 (0.03) --
2002 7.99 0.01 (1.86) (1.85) -- --
2001 14.25 (0.01) (4.44) (4.45) -- (1.81)
2000 13.09 (0.02) 2.67 2.65 -- (1.49)
1999 10.55 -- 3.13 3.13 -- (0.59)
Investment Shares - Class A
2004* $ 7.33 $(0.01) $ 0.28 $ 0.27 $ -- $ --
2003 6.08 0.02 1.24 1.26 (0.01) --
2002 7.93 (0.02) (1.83) (1.85) -- --
2001 14.18 (0.03) (4.41) (4.44) -- (1.81)
2000 13.06 (0.03) 2.64 2.61 -- (1.49)
1999 10.58 (0.03) 3.10 3.07 -- (0.59)
Investment Shares - Class B
2004* $ 7.03 $(0.04) $ 0.28 $ 0.24 $ -- $ --
2003 5.87 (0.04) 1.20 1.16 -- --
2002 7.72 (0.07) (1.78) (1.85) -- --
2001 13.95 (0.09) (4.33) (4.42) -- (1.81)
2000 12.96 (0.08) 2.56 2.48 -- (1.49)
1999(1) 10.82 (0.04) 2.77 2.73 -- (0.59)
- --------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
- --------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $ 6.65 $ 0.02 $ 0.28 $ 0.30 $(0.02) $ --
2003 5.78 0.05 0.87 0.92 (0.05)++ --
2002 7.42 0.04 (1.64) (1.60) (0.04) --
2001 10.77 0.05 (2.82) (2.77) (0.05) (0.53)
2000(2) 10.00 0.07 0.76 0.83 (0.06) --
Investment Shares - Class A
2004* $ 6.64 $ 0.01 $ 0.28 $ 0.29 $(0.01) $ --
2003 5.77 0.04 0.87 0.91 (0.04)++ --
2002 7.41 0.02 (1.64) (1.62) (0.02) --
2001 10.76 0.04 (2.83) (2.79) (0.03) (0.53)
2000(3) 9.78 0.04 1.00 1.04 (0.06) --
Investment Shares - Class B
2004* $ 6.58 $(0.02) $ 0.28 $ 0.26 $ -- $ --
2003 5.73 (0.02) 0.87 0.85 --**++ --
2002 7.38 (0.03) (1.62) (1.65) -- --
2001 10.75 (0.02) (2.82) (2.84) -- (0.53)
2000(4) 9.82 0.01 0.94 0.95 (0.02) --
* For the six months ended April 30, 2004 (unaudited). All ratios for the
period have been annualized.
** Amount represents less than $0.01.
+ Returns are for the period indicated and have not been annualized.
++ Includes Return of Capital of $0.0003.
(1) Commenced operations on November 16, 1998. All ratios for the period have
been annualized.
The accompanying notes are an integral part of the financial statements.
46 APRIL 30, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSET RATIO OF RATIO OF NET RATIO OF EXPENSES
DIVIDENDS VALUE, NET ASSETS EXPENSES INVESTMENT TO AVERAGE NET ASSETS
AND END OF TOTAL END OF TO AVERAGE INCOME (LOSS) TO (EXCLUDING WAIVERS PORTFOLIO
DISTRIBUTIONS OF PERIOD RETURN+ PERIOD (000) NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) TURNOVER RATE
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $ --** $ 7.67 3.84% $155,344 1.18% 0.15% 1.18% 37.54%
2003 (0.03) 7.39 20.99% 156,142 1.18% 0.51% 1.18% 66.18%
2002 -- 6.14 (23.15)% 173,038 1.16% 0.16% 1.16% 47.88%
2001 (1.81) 7.99 (34.99)% 288,992 1.10% (0.09)% 1.10% 79.08%
2000 (1.49) 14.25 22.01% 422,148 1.05% (0.22)% 1.05% 64.54%
1999 (0.59) 13.09 30.87% 363,694 1.05% 0.04% 1.05% 90.76%
Investment Shares - Class A
2004* $ -- $ 7.60 3.68% $ 7,473 1.43% (0.10)% 1.43% 37.54%
2003 (0.01) 7.33 20.72% 8,910 1.43% 0.24% 1.43% 66.18%
2002 -- 6.08 (23.33)% 7,100 1.41% (0.09)% 1.41% 47.88%
2001 (1.81) 7.93 (35.11)% 11,253 1.35% (0.32)% 1.35% 79.08%
2000 (1.49) 14.18 21.73% 10,090 1.30% (0.49)% 1.30% 64.54%
1999 (0.59) 13.06 30.16% 4,688 1.30% (0.21)% 1.30% 90.76%
Investment Shares - Class B
2004* $ -- $ 7.27 3.41% $ 15,086 2.18% (0.85)% 2.18% 37.54%
2003 -- 7.03 19.76% 15,024 2.18% (0.50)% 2.18% 66.18%
2002 -- 5.87 (23.96)% 13,141 2.16% (0.84)% 2.16% 47.88%
2001 (1.81) 7.72 (35.61)% 18,186 2.10% (1.08)% 2.10% 79.08%
2000 (1.49) 13.95 20.80% 20,358 2.05% (1.24)% 2.05% 64.54%
1999(1) (0.59) 12.96 26.31% 7,706 2.05% (0.95)% 2.05% 90.76%
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $(0.02) $ 6.93 4.50% $ 9,074 1.25% 0.47% 2.37% 17.79%
2003 (0.05)++ 6.65 16.12% 12,422 1.25% 0.70% 2.23% 99.66%
2002 (0.04) 5.78 (21.66)% 13,865 1.25% 0.56% 1.72% 93.43%
2001 (0.58) 7.42 (26.99)% 20,401 1.25% 0.60% 1.42% 88.73%
2000(2) (0.06) 10.77 8.36% 34,420 1.25% 1.00% 1.25% 73.31%
Investment Shares - Class A
2004* $(0.01) $ 6.92 4.42% $ 299 1.50% 0.30% 2.62% 17.79%
2003 (0.04)++ 6.64 15.84% 277 1.50% 0.46% 2.48% 99.66%
2002 (0.02) 5.77 (21.87)% 309 1.50% 0.32% 1.97% 93.43%
2001 (0.56) 7.41 (27.19)% 408 1.50% 0.32% 1.67% 88.73%
2000(3) (0.06) 10.76 10.60% 286 1.50% 0.84% 1.50% 73.31%
Investment Shares - Class B
2004* $ -- $ 6.84 3.97% $ 714 2.25% (0.46)% 3.37% 17.79%
2003 --**++ 6.58 14.85% 715 2.25% (0.29)% 3.23% 99.66%
2002 -- 5.73 (22.36)% 706 2.25% (0.43)% 2.72% 93.43%
2001 (0.53) 7.38 (27.66)% 836 2.25% (0.45)% 2.42% 88.73%
2000(4) (0.02) 10.75 9.71% 427 2.25% (0.15)% 2.25% 73.31%
(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.
APRIL 30, 2004 47
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
- --------------------------------------------------------------------------------------------------------------------
NET REALIZED AND DIVIDENDS
ASSET VALUE, NET UNREALIZED TOTAL FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT GAINS OR (LOSSES) FROM INVESTMENT FROM
OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
- --------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
- --------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $10.70 $ 0.24 $(0.17) $ 0.07 $(0.24) $ --
2003 10.77 0.49 (0.07) 0.42 (0.49) --
2002 10.60 0.53 0.17 0.70 (0.53) --
2001 9.72 0.53 0.88 1.41 (0.53) --
2000 9.65 0.53 0.07 0.60 (0.53) --
1999 10.15 0.49 (0.50) (0.01) (0.49) --
Investment Shares - Class A
2004* $10.69 $ 0.22 $(0.17) $ 0.05 $(0.22) $ --
2003 10.76 0.46 (0.07) 0.39 (0.46) --
2002 10.59 0.50 0.17 0.67 (0.50) --
2001 9.71 0.50 0.88 1.38 (0.50) --
2000 9.64 0.51 0.07 0.58 (0.51) --
1999 10.15 0.47 (0.51) (0.04) (0.47) --
Investment Shares - Class B
2004* $10.71 $ 0.18 $(0.17) $ 0.01 $(0.18) $ --
2003 10.78 0.38 (0.07) 0.31 (0.38) --
2002 10.61 0.42 0.17 0.59 (0.42) --
2001 9.72 0.43 0.89 1.32 (0.43) --
2000 9.64 0.44 0.08 0.52 (0.44) --
1999(1) 10.06 0.38 (0.17) 0.21 (0.63) --
- --------------------------------------------------------------------------------------------------------------------
TAX-FREE INVESTMENT GRADE BOND FUND
- --------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $10.91 $ 0.19 $(0.11) $ 0.08 $(0.19) $(0.22)
2003 11.00 0.39 0.10 0.49 (0.39) (0.19)
2002(2) 10.89 0.43 0.15 0.58 (0.43) (0.04)
2001 10.37 0.44 0.52 0.96 (0.44) --
2000(3) 10.00 0.31 0.37 0.68 (0.31) --
Investment Shares - Class A
2004* $10.91 $ 0.18 $(0.12) $ 0.06 $(0.18) $(0.22)
2003 10.99 0.36 0.11 0.47 (0.36) (0.19)
2002(2) 10.88 0.40 0.15 0.55 (0.40) (0.04)
2001 10.36 0.42 0.52 0.94 (0.42) --
2000(4) 10.05 0.28 0.31 0.59 (0.28) --
Investment Shares - Class B
2004* $10.91 $ 0.14 $(0.12) $ 0.02 $(0.14) $(0.22)
2003 10.99 0.28 0.11 0.39 (0.28) (0.19)
2002(2) 10.89 0.32 0.14 0.46 (0.32) (0.04)
2001 10.37 0.34 0.52 0.86 (0.34) --
2000(5) 10.18 0.13 0.19 0.32 (0.13) --
* For the six months ended April 30, 2004 (unaudited). All ratios for the
period have been annualized.
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on November 16, 1998. All ratios for the period have
been annualized.
(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 accompanying notes are an integral part of the financial statements.
48 APRIL 30, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSET RATIO OF RATIO OF NET RATIO OF EXPENSES
DIVIDENDS VALUE, NET ASSETS EXPENSES INVESTMENT TO AVERAGE NET ASSETS
AND END OF TOTAL END OF TO AVERAGE INCOME TO (EXCLUDING WAIVERS PORTFOLIO
DISTRIBUTIONS OF PERIOD RETURN+ PERIOD (000) NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) TURNOVER RATE
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $(0.24) $10.53 0.59% $102,642 0.80% 4.36% 0.90% 11.03%
2003 (0.49) 10.70 3.89% 106,643 0.80% 4.42% 0.89% 27.97%
2002 (0.53) 10.77 6.88% 110,312 0.80% 5.06% 0.90% 13.80%
2001 (0.53) 10.60 15.00% 119,279 0.77% 5.35% 0.86% 29.53%
2000 (0.53) 9.72 6.49% 136,354 0.75% 5.61% 0.89% 77.09%
1999 (0.49) 9.65 (0.06)% 98,889 0.90% 5.00% 1.15% 39.57%
Investment Shares - Class A
2004* $(0.22) $10.52 0.46% $ 5,057 1.05% 4.11% 1.15% 11.03%
2003 (0.46) 10.69 3.63% 5,407 1.05% 4.17% 1.14% 27.97%
2002 (0.50) 10.76 6.61% 5,262 1.02% 5.09% 1.11% 29.53%
2000 (0.51) 9.71 6.22% 5,222 1.00% 5.32% 1.14% 77.09%
1999 (0.47) 9.64 (0.41)% 7,279 1.15% 4.75% 1.40% 39.57%
Investment Shares - Class B
2004* $(0.18) $10.54 0.09% $ 1,942 1.80% 3.36% 1.90% 11.03%
2003 (0.38) 10.71 2.86% 2,124 1.80% 3.42% 1.89% 27.97%
2002 (0.42) 10.78 5.82% 1,914 1.80% 4.03% 1.90% 13.80%
2001 (0.43) 10.61 13.99% 1,059 1.77% 4.30% 1.86% 29.53%
2000 (0.44) 9.72 5.54% 204 1.75% 4.58% 1.89% 77.09%
1999(1) (0.63) 9.64 2.10% 214 1.90% 4.07% 2.15% 39.57%
- ------------------------------------------------------------------------------------------------------------------------------------
TAX-FREE INVESTMENT GRADE BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $(0.41) $10.58 0.69% $ 65,726 0.80% 3.59% 0.91% 5.75%
2003 (0.58) 10.91 4.57% 71,211 0.80% 3.54% 0.91% 38.86%
2002(2) (0.47) 11.00 5.50% 75,064 0.80% 3.96% 0.88% 23.39%
2001 (0.44) 10.89 9.53% 86,461 0.77% 4.22% 0.83% 29.84%
2000(3) (0.31) 10.37 6.84% 84,729 0.65% 4.58% 0.75% 42.74%
Investment Shares - Class A
2004* $(0.40) $10.57 0.47% $ 274 1.05% 3.34% 1.16% 5.75%
2003 (0.55) 10.91 4.40% 305 1.05% 3.31% 1.16% 38.86%
2002(2) (0.44) 10.99 5.24% 827 1.05% 3.71% 1.13% 23.39%
2001 (0.42) 10.88 9.26% 872 1.02% 3.96% 1.08% 29.84%
2000(4) (0.28) 10.36 5.95% 523 0.90% 4.36% 1.00% 42.74%
Investment Shares - Class B
2004* $(0.36) $10.57 0.10% $ 221 1.80% 2.59% 1.91% 5.75%
2003 (0.47) 10.91 3.63% 220 1.80% 2.54% 1.91% 38.86%
2002(2) (0.36) 10.99 4.36% 224 1.80% 2.96% 1.88% 23.39%
2001 (0.34) 10.89 8.45% 182 1.77% 3.18% 1.83% 29.84%
2000(5) (0.13) 10.37 3.16% 3 1.65% 3.56% 1.75% 42.74%
The effect of this change for the year ended October 31, 2002 was a decrease
in the ratio of net investment income to average net assets of 0.01%. Per
share data and ratios for period prior to November 1, 2001 have not been
restated to reflect this change in accounting.
(3) Commenced operations on March 3, 2000. All ratios for the period have been
annualized.
(4) Commenced operations on March 10, 2000. All ratios for the period have been
annualized.
(5) Commenced operations on June 23, 2000. All ratios for the period have been
annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
APRIL 30, 2004 49
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
- --------------------------------------------------------------------------------------------------------------------
NET REALIZED AND DIVIDENDS
ASSET VALUE, NET UNREALIZED TOTAL FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT GAIN FROM INVESTMENT FROM
OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
- --------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
- --------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $1.00 $ -- $-- $ -- $ --** $ --
2003 1.00 0.01 -- 0.01 (0.01) --
2002 1.00 0.01 -- 0.01 (0.01) --
2001 1.00 0.04 -- 0.04 (0.04) --
2000 1.00 0.06 -- 0.06 (0.06) --
1999 1.00 0.05 -- 0.05 (0.05) --
Investment Service Shares
2004* $1.00 $ -- $-- $ -- $ --** $--
2003 1.00 0.01 -- 0.01 (0.01) --
2002 1.00 0.01 -- 0.01 (0.01) --
2001 1.00 0.04 -- 0.04 (0.04) --
2000 1.00 0.06 -- 0.06 (0.06) --
1999 1.00 0.05 -- 0.05 (0.05) --
Sweep Class Shares
2004* $1.00 $ -- $-- $ -- $ --** $--
2003 1.00 0.01 -- 0.01 (0.01) --
2002 1.00 0.02 -- 0.02 (0.02) --
2001 1.00 0.04 -- 0.04 (0.04) --
2000(1) 1.00 0.01 -- 0.01 (0.01) --
- --------------------------------------------------------------------------------------------------------------------
TAX-FREE MONEY MARKET FUND
- --------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $1.00 $ -- $-- $ -- $ --** $--
2003 1.00 0.01 -- 0.01 (0.01) --
2002 1.00 0.01 -- 0.01 (0.01) --
2001 1.00 0.03 -- 0.03 (0.03) --
2000 1.00 0.04 -- 0.04 (0.04) --
1999(2) 1.00 0.02 -- 0.02 (0.02) --
Investment Service Shares
2004* $1.00 $ -- $-- $ -- $ --** $--
2003 1.00 0.01 -- 0.01 (0.01) --
2002 1.00 0.01 -- 0.01 (0.01) --
2001 1.00 0.03 -- 0.03 (0.03) --
2000 1.00 0.03 -- 0.03 (0.03) --
1999 1.00 0.03 -- 0.03 (0.03) --
Sweep Class Shares
2004* $1.00 $ -- $-- $ -- $ --** $--
2003 1.00 -- -- -- --** --
2002 1.00 0.01 -- 0.01 (0.01) --
2001 1.00 0.03 -- 0.03 (0.03) --
2000(1) 1.00 0.01 -- 0.01 (0.01) --
* For the six months ended April 30, 2004 (unaudited). All ratios for the
period have been annualized.
** Amount represents less than $0.01.
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on August 1, 2000. All ratios for the period have been
annualized.
(2) Commenced operations on April 14, 1999. All ratios for the period have been
annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
50 APRIL 30, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSET RATIO OF RATIO OF NET RATIO OF EXPENSES
DIVIDENDS VALUE, NET ASSETS EXPENSES INVESTMENT TO AVERAGE NET ASSETS
AND END OF TOTAL END OF TO AVERAGE INCOME TO (EXCLUDING WAIVERS
DISTRIBUTIONS OF PERIOD RETURN+ PERIOD (000) NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS)
- ------------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $ --** $1.00 0.32% $235,427 0.45% 0.64% 0.67%
2003 (0.01) 1.00 0.88% 251,212 0.45% 0.85% 0.67%
2002 (0.01) 1.00 1.56% 238,337 0.45% 1.54% 0.68%
2001 (0.04) 1.00 4.61% 147,806 0.45% 4.59% 0.72%
2000 (0.06) 1.00 5.96% 130,891 0.43% 5.79% 0.69%
1999 (0.05) 1.00 4.83% 130,798 0.43% 4.73% 0.77%
Investment Service Shares
2004* $ --** $1.00 0.20% $306,467 0.70% 0.39% 0.92%
2003 (0.01) 1.00 0.63% 313,845 0.70% 0.62% 0.92%
2002 (0.01) 1.00 1.31% 356,976 0.70% 1.30% 0.93%
2001 (0.04) 1.00 4.35% 377,922 0.70% 4.17% 0.97%
2000 (0.06) 1.00 5.69% 324,583 0.68% 5.62% 0.94%
1999 (0.05) 1.00 4.56% 186,431 0.68% 4.47% 1.02%
Sweep Class Shares
2004* $ --** $1.00 0.14% $ 62,052 0.82% 0.27% 1.04%
2003 (0.01) 1.00 0.51% 53,500 0.82% 0.49% 1.04%
2002 (0.02) 1.00 1.18% 50,456 0.82% 1.18% 1.05%
2001 (0.04) 1.00 4.22% 52,530 0.82% 3.96% 1.09%
2000(1) (0.01) 1.00 1.53% 31,979 0.80% 5.95% 1.06%
- ------------------------------------------------------------------------------------------------------------------------------------
TAX-FREE MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2004* $ --** $1.00 0.32% $ 85,270 0.43% 0.65% 0.67%
2003 (0.01) 1.00 0.79% 84,116 0.43% 0.80% 0.67%
2002 (0.01) 1.00 1.28% 97,792 0.43% 1.25% 0.68%
2001 (0.03) 1.00 2.97% 35,939 0.43% 2.55% 0.76%
2000 (0.04) 1.00 3.80% 5,622 0.43% 3.61% 0.69%
1999(2) (0.02) 1.00 1.69% 28,874 0.43% 3.06% 0.89%
Investment Service Shares
2004* $ --** $1.00 0.20% $ 81,348 0.68% 0.40% 0.92%
2003 (0.01) 1.00 0.54% 87,062 0.68% 0.53% 0.92%
2002 (0.01) 1.00 1.02% 76,854 0.68% 1.03% 0.93%
2001 (0.03) 1.00 2.71% 113,519 0.68% 2.62% 1.01%
2000 (0.03) 1.00 3.54% 72,535 0.68% 3.48% 0.94%
1999 (0.03) 1.00 2.77% 59,889 0.68% 2.73% 0.95%
Sweep Class Shares
2004* $ --** $1.00 0.14% $ 22,522 0.80% 0.28% 1.04%
2003 --** 1.00 0.42% 22,737 0.80% 0.39% 1.04%
2002 (0.01) 1.00 0.90% 8,428 0.80% 0.91% 1.05%
2001 (0.03) 1.00 2.59% 4,069 0.80% 2.31% 1.13%
2000(1) (0.01) 1.00 1.00% 2,058 0.80% 3.81% 1.06%
APRIL 30, 2004 51
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) ORGANIZATION
The Expedition Funds (the "Trust") are registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end, management investment
company offering the following Funds as of April 30, 2004: 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"). At April 30, 2004, no restricted securities
were held by the Funds.
52 APRIL 30, 2004
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. At April 30, 2004, no such securities were held by the
Funds.
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.
APRIL 30, 2004 53
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 AND SHAREHOLDER SERVICING 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
54 APRIL 30, 2004
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.
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) TRANSACTIONS WITH AFFILIATES
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.
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.
APRIL 30, 2004 55
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(5) CAPITAL SHARE TRANSACTIONS (000)
For the six months ended April 30, 2004 (unaudited)
and the year ended October 1, 2003
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND
------------------- ------------------
Period Year Period Year
Ended Ended Ended Ended
04/30/04 10/31/03 04/30/04 10/31/03
--------- -------- -------- --------
Institutional Shares:
Shares issued 776 1,756 -- 7
Shares issued in lieu of cash distributions 3 64 -- --
Shares redeemed (1,654) (8,868) (559) (536)
------- ------- ----- -----
Increase (decrease) from
Institutional Shares transactions (875) (7,048) (559) (529)
------- ------- ----- -----
Investment Shares - Class A and
Investment Service Shares, respectively:
Shares issued 40 292 4 5
Shares issued in lieu of cash distributions -- 2 -- --
Shares redeemed (273) (246) (3) (17)
------- ------- ----- -----
Increase (decrease) from Investment Shares -
Class A and Investment Service Shares
transactions, respectively (233) 48 1 (12)
------- ------- ----- -----
Investment Shares - Class B and
Sweep Class Shares, respectively:
Shares issued 128 252 11 14
Shares issued in lieu of cash distributions -- -- -- --
Shares redeemed (188) (354) (16) (28)
------- ------- ----- -----
Increase (decrease) from Investment Shares -
Class B and Sweep Class Shares
transactions, respectively (60) (102) (5) (14)
------- ------- ----- -----
TOTAL INCREASE (DECREASE)
FROM SHARE TRANSACTIONS (1,168) (7,102) (563) (555)
======= ======= ===== =====
Amounts designated as "--" are either $0 or have been rounded to $0.
56 APRIL 30, 2004
EXPEDITION EXPEDITION TAX-FREE EXPEDITION EXPEDITION
INVESTMENT GRADE INVESTMENT GRADE MONEY MARKET TAX-FREE MONEY
BOND FUND BOND FUND FUND MARKET FUND
------------------- ------------------- -------------------- ------------------
Period Year Period Year Period Year Period Year
Ended Ended Ended Ended Ended Ended Ended Ended
04/30/04 10/31/03 04/30/04 10/31/03 04/30/04 10/31/03 04/30/04 10/31/03
-------- --------- -------- --------- --------- --------- --------- ---------
Institutional Shares
Shares issued 585 2,515 288 957 582,370 831,364 129,231 395,054
Shares issued in lieu of cash
distributions 123 263 86 92 27 90 -- --
Shares redeemed (928) (3,052) (684) (1,350) (598,181) (818,571) (128,075) (408,728)
------ ------- ------ -------- --------- --------- --------- ---------
Increase (decrease) from
Institutional Shares transactions (220) (274) (310) (301) (15,784) 12,883 1,156 (13,674)
------ ------- ------ -------- --------- --------- --------- ---------
Investment Shares - Class A and
Investment Service Shares,
respectively:
Shares issued 4 45 20 16 392,870 646,623 98,653 231,192
Shares issued in lieu of cash
distributions 8 17 1 3 46 214 1 4
Shares redeemed (37) (49) (23) (66) (400,293) (689,955) (104,364) (220,987)
------ ------- ------ -------- --------- --------- --------- ---------
Increase (decrease) from Investment
Shares - Class A and Investment
Service Shares transactions,
respectively (25) 13 (2) (47) (7,377) (43,118) (5,710) 10,209
------ ------- ------ -------- --------- --------- --------- ---------
Investment Shares - Class B and
Sweep Class Shares, respectively:
Shares issued 18 61 -- 4 108,314 153,774 29,572 62,132
Shares issued in lieu of cash
distributions 3 6 1 1 81 233 8 19
Shares redeemed (35) (47) -- (5) (99,843) (150,961) (29,794) (47,843)
------ ------- ------ -------- --------- --------- --------- ---------
Increase (decrease) from Investment
Shares - Class B and Sweep Class
Shares transactions, respectively (14) 20 1 -- 8,552 3,046 (214) 14,308
---- ------- ------ -------- --------- --------- --------- ---------
TOTAL INCREASE (DECREASE)
FROM SHARE TRANSACTIONS (259) (241) (311) (348) (14,609) (27,189) (4,768) 10,843
==== ======= ====== ======== ========= ========= ========= =========
APRIL 30, 2004 57
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(6) INVESTMENT TRANSACTIONS
Purchases, sales and maturities of investments, excluding short-term securities,
for the six months ended April 30, 2004, were as follows (000):
TAX-FREE
EQUITY INVESTMENT INVESTMENT
EQUITY INCOME GRADE BOND GRADE BOND
FUND FUND FUND FUND
------ ------- ----------- ----------
Purchases
U.S. Government ....... $ -- $ -- $6,109 $ --
Other ................. 68,584 2,092 5,978 3,908
Sales and Maturities
U.S. Government ....... -- -- 8,644 --
Other ................. 76,715 6,035 8,393 6,586
(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.
58 APRIL 30, 2004
The tax character of dividends and distributions declared during the years ended
October 31, 2003, and October 31, 2002, 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)
APRIL 30, 2004 59
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 April 30, 2004,
and the net realized gains or losses on securities sold for the period were
different from amounts reported for financial reporting purposes, primarily due
to wash sales which cannot be used for Federal income tax purposes in the
current year and have been deferred for use in future years. The Federal tax
cost and aggregate gross unrealized appreciation and depreciation on
investments, held by the Funds at April 30, 2004, were as follows (000):
NET
FEDERAL APPRECIATED DEPRECIATED UNREALIZED
TAX COST SECURITIES SECURITIES APPRECIATION
-------- ----------- ----------- ------------
Equity Fund ........... $161,753 $23,777 $(7,679) $16,098
Equity Income
Fund ............... 9,095 1,262 (258) 1,004
Investment Grade
Bond Fund .......... 101,884 7,298 (574) 6,724
Tax-Free Investment
Grade Bond Fund .... 62,816 2,913 (139) 2,774
60 APRIL 30, 2004
[EXPEDITION LOGO OMITTED]
INVESTMENT ADVISOR
Compass Asset Management,
a division of Compass Bank
15 South 20th Street
Birmingham, Alabama 35233
DISTRIBUTOR:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
TRANSFER AGENT:
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
SERVICING AGENT:
Boston Financial Data Services, Inc.
Two Heritage Drive
Quincy, Massachusetts 02171
INDEPENDENT AUDITORS:
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281
COUNSEL:
Morgan, Lewis & Bockius LLP
1800 M Street, N.W.
Washington, D.C. 20036
EXP-SA-003-0400
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end investment management companies.
ITEM 6. (RESERVED)
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end investment management companies.
ITEM 8. PURCHASERS OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY
AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 10. 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 11. EXHIBITS.
(a)(1) Not applicable for semi-annual report.
(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 6/25/04
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 6/25/04
By (Signature and Title)* /s/ Peter J. Golden
-------------------
Peter J. Golden, Controller and CFO
Date 6/25/04
* Print the name and title of each signing officer under his or her signature.