UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05775
WM Trust II
(Exact name of registrant as specified in charter)
1201 Third Avenue, 22nd Floor, Seattle, WA 98101
(Address of principal executive offices) (Zip code)
Jeffrey L. Lunzer
1201 Third Avenue, 22nd Floor, Seattle, WA 98101
(Name and address of agent for service)
Registrant's telephone number, including area code: (206) 461-3800
Date of fiscal year end: October 31, 2005
Date of reporting period: April 30, 2005
ITEM 1. REPORTS TO STOCKHOLDERS
[WM GROUP OF FUNDS LOGO]
[GRAPHIC]
SEMIANNUAL REPORT
April 30, 2005
WM GROUP OF FUNDS
Equity Funds
Fixed-Income Funds
Municipal Funds
Money Funds
WM Group of Funds
EQUITY FUNDS
REIT Fund
Equity Income Fund
Growth & Income Fund
West Coast Equity Fund
Mid Cap Stock Fund
Growth Fund
Small Cap Value Fund
Small Cap Growth Fund
International Growth Fund
FIXED-INCOME FUNDS
Short Term Income Fund
U.S.Government Securities Fund
Income Fund
High Yield Fund
MUNICIPAL FUNDS
Tax-Exempt Bond Fund
California Municipal Fund
California Insured Intermediate
Municipal Fund
MONEY FUNDS
Money Market Fund
Tax-Exempt Money Market Fund
California Money Fund
[GRAPHIC]
At the WM Group of Funds,our passion is piecing individual investments together
into comprehensive portfolios to make your financial plan more effective.
Table of Contents
Letter from the President 1
WM Group of Funds Performance and Composition:
REIT Fund 2
Equity Income Fund 3
Growth & Income Fund 4
West Coast Equity Fund 5
Mid Cap Stock Fund 6
Growth Fund 7
Small Cap Value Fund 8
Small Cap Growth Fund 9
International Growth Fund 10
Short Term Income Fund 11
U.S.Government Securities Fund 12
Income Fund 13
High Yield Fund 14
Tax-Exempt Bond Fund 15
California Municipal Fund 16
California Insured Intermediate Municipal Fund 17
Money Funds 18
Expense Information 20
Financial Statements 22
Notes to Financial Statements 122
NOT FDIC INSURED
- --------------------------------------------------
May Lose Value - Not a Deposit - No Bank Guarantee
Not Insured by any Federal Government Agency
Dear Shareholder,
[PHOTO OF WILLIAM G. PAPESH]
Since my last letter to you, the financial markets have continued to be volatile
and uncertain. No more certain have been issues at home--such as rising oil
prices and the ongoing Social Security debate--not to mention events
abroad. Amid this uncertainty, I am proud to say that we have remained as
committed as ever to effective asset allocation and consistent investment
discipline. We trust that these core commitments can continue to build value for
you over time.
We are delighted to note that as a result of our efforts, the WM Group of Funds
was once again recognized for its 5-year results by Barron's, as it has been
every year since 1999. In addition, over the last five years assets in the WM
Group of Funds--from a combination of net shareholder purchases and fund
performance--have increased by 133%, while industry assets during that period
increased by 18%. (1) The stock market (as measured by the S&P 500 (2)) fell by
11% over the same five years through 2004.
BARRON'S ANNUAL FUND FAMILY RANKINGS
YEAR 5-YEAR RANKING 1-YEAR RANKING
- ---- -------------- --------------
2004 #15 out of 67 #46 out of 73
2003 # 5 out of 70 #41 out of 75
2002 # 1 out of 72 # 7 out of 81
2001 # 5 out of 70 # 6 out of 88
2000 #11 out of 65 #44 out of 84
1999 # 9 out of 68 # 9 out of 92
THE ENDURING VALUE OF MUTUAL FUNDS
We believe that these figures reflect not only the attractiveness of the WM
Group of Funds, but also the enduring value of mutual funds as an investment
vehicle for our shareholders. While some investors are lured away by alternative
strategies such as wrap accounts or hedge funds, we think mutual funds continue
to represent one of the most cost-effective vehicles investors can use to gain
diversified access to U.S. and foreign securities markets. We also believe that
our business remains one that can significantly aid investors in achieving their
long-term financial objectives--among the most important of which is laying a
foundation for their retirement years.
The recent debate over Social Security policy highlights this need more than
ever. Regardless of one's political position,we think it has become increasingly
clear that one of the best solutions to the Social Security quandary is for
Americans to reduce their dependence on that program. We firmly believe that
investors and their advisors will be well served by continuing to focus on
long-term strategies that can build wealth independent of the wranglings of
government policy.
PRIDE IN OUR HERITAGE
As a firm, we are proud of our 66 years of intensive asset management
experience. We believe this heritage will serve our shareholders well as
financial markets and world events continue to produce the unexpected. As
always, our focus remains on pursuing the highest risk-adjusted returns for
investors, and we thank you again for your ongoing confidence and support.
Sincerely,
/s/ William G. Papesh
- --------------------
William G. Papesh
President
Note regarding Barron's rankings: PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE
RESULTS. Barron's rankings are for periods ended 12/31 and are determined using
weighted calculations based on the performance of each family's funds as tracked
by Lipper. To qualify for the rankings, Barron's requires that a fund family
offer funds within a wide array of asset classes. For the periods shown above,
the WM Group of Funds did not qualify for 10-year rankings because it did not
have the appropriate fund qualifications with 10-year performance. To calculate
the results, Lipper ranks each fund's return versus those of others in the same
category, placing the best performers in the first percentile. Next, all funds
in a given family that fit a particular asset class category are averaged
together on an asset-weighted basis. Finally, each family's percentile rankings
in the broad categories are combined to create the final ranking.
1 Source: WM Group of Funds and the Investment Company Institute. Figures
are for the 5-year period ended 12/31/04. They are based on long-term
assets only and do not include money market funds.
2 The S&P 500 is a broad-based index intended to represent the U.S. equity
market. Indices are unmanaged, and individuals cannot invest directly in
an index.
PORTFOLIO MANAGER
REIT Fund Richard E. Helm, CFA
WM Advisors, Inc.
[GRAPHIC]
Data shown is past performance and does not guarantee future results. Current
performance, including the most recent month-end results, which may be higher or
lower than the data shown, can be obtained by calling 800-222-5852. An
investment's return and principal value will fluctuate, so it may be worth more
or less upon redemption. A sales charge may apply as follows: Class A shares:
maximum up-front sales charge of 5.5%; Class B shares: contingent deferred sales
charge of 5%,which declines over 5 years
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year Since Inception Inception Date
---------- -------- ---------------- --------------
CLASS A SHARES Net Asset Value(3) 6.29% 31.27% 28.77% 3/1/03
With Sales Charge 0.44% 24.08% 25.46%
CLASS B SHARES Net Asset Value(3) 5.85% 30.24% 27.81% 3/1/03
With Sales Charge 0.85% 25.24% 26.42%
CLASS C SHARES Net Asset Value(3) 5.91% 30.38% 27.94% 3/1/03
With Sales Charge 4.91% 29.38% 27.94%
NAREIT All REIT Index(4) 6.11% 32.27% 30.10%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: 1.11% (1-year), 23.55% (since inception)
Class B Shares: 1.26% (1-year), 24.53% (since inception)
Class C Shares: 5.30% (1-year), 26.12% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Industrial/Office 26% 26% 0%
Retail 26% 25% +1%
Residential 11% 13% -2%
Common Stocks 7% 6% +1%
Lodging/Resorts 6% 5% +1%
Specialty 6% 5% +1%
Diversified 4% 4% 0%
Health Care 4% 4% 0%
Self Storage 3% 3% 0%
Mortgage/Financial 2% 2% 0%
Cash Equivalents 5% 7% -2%
1 Performance reflects ongoing fund expenses, which may have been waived,
and assumes reinvestment of all dividends and capital gains. Performance
does not reflect the impact of federal, state, or municipal taxes. If it
did, performance would be lower.
2 Periods of less than one year are not annualized.
3 Net asset value is not adjusted for sales charge.
2
PORTFOLIO MANAGER
Richard E. Helm, CFA Equity Income Fund*
WM Advisors, Inc.
(5-5-4-3-2-0%); Class C shares: contingent deferred sales charge of 1%
on redemptions made during the first 12 months. See the prospectus for details.
Performance listed with sales charge reflects the maximum sales charge.
REIT securities are subject to risk factors associated with the real estate
industry and tax factors of REIT registration.
* As of 8/1/00, the WM Bond & Stock Fund became the WM Equity Income Fund, and
the Fund's objectives and strategies changed. This information should be
considered when reviewing past performance. Please see the prospectus for
detailed information.
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------- ------- -------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 8.04% 14.97% 10.27% 11.56% 9.02% 5/31/39
With Sales Charge 2.08% 8.65% 9.02% 10.93% 8.92%
CLASS B SHARES Net Asset Value(3) 7.58% 13.97% 9.29% 10.81% 10.81% 3/30/94
With Sales Charge 2.58% 8.97% 9.01% 10.81% 10.81%
CLASS C SHARES Net Asset Value(3) 7.68% 14.17% - - 8.89% 3/1/02
With Sales Charge 6.68% 13.17% - - 8.89%
S&P 500/Barra Value Index(4) 3.51% 9.72% 1.65% 10.36% -
S&P 500(4) 3.28% 6.32% -2.94% 10.26% 11.55%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: 06.54% (1-year), 9.07% (5-year), 11.26% (10-year), 8.94%
(since inception)
Class B Shares: 6.70% (1-year), 9.05% (5-year), 11.14%(10-year), 10.93% (since
inception)
Class C Shares: 10.83% (1-year), 9.31% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Financials 25% 23% +2%
Consumer Discretionary 12% 14% -2%
Energy 9% 9% 0%
Industrials 8% 8% 0%
Health Care 7% 5% +2%
Information Technology 7% 8% -1%
Consumer Staples 6% 7% -1%
REITs 5% 7% -2%
Utilities 5% 4% +1%
Materials 3% 4% -1%
Telecommunication Services 3% 2% +1%
Convertible Securities 2% 1% +1%
U.S. Treasuries 2% 0% +2%
Corporate Bonds 1% 1% 0%
Cash Equivalents 5% 7% -2%
4 The National Association of Real Estate Investment Trust (NAREIT) All REIT
Index reflects the aggregate performance of all publicly traded REITs that
own, develop, and manage properties. The S&P 500/Barra Value Index is
constructed by ranking the securities in the S&P 500 by price-to-book
ratio and including the securities with the lowest price-to-book ratios
that represent approximately half of the market capitalization of the S&P
500. The S&P 500 is a broad-based index intended to represent the U.S.
equity market. Returns shown for the indices assume reinvestment of all
dividends and distributions. Since-inception returns shown for the NAREIT
AII REIT Index are calculated from 2/28/03. Since-inception returns shown
for the S&P 500 are calculated from 5/31/39. Indices are unmanaged, and
individuals cannot invest directly in an index.
5 May not reflect the current portfolio composition.
3
PORTFOLIO MANAGER
Growth & Income Fund Stephen Q. Spencer, CFA
WM Advisors, Inc.
[GRAPHIC]
Data shown is past performance and does not guarantee future results. Current
performance, including the most recent month-end results, which may be higher or
lower than the data shown, can be obtained by calling 800-222-5852. An
investment's return and principal value will fluctuate, so it may be worth more
or less upon redemption. A sales charge may apply as follows: Class A shares:
maximum up-front sales charge of 5.5%; Class B shares: contingent deferred sales
charge of 5%, which declines over 5 years
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------- ------- -------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 4.05% 4.10% 0.44% 10.40% 10.12% 10/31/49
With Sales Charge -1.66% -1.62% -0.69% 9.77% 10.00%
CLASS B SHARES Net Asset Value(3) 3.54% 3.04% -0.53% 9.65% 10.07% 3/30/94
With Sales Charge -1.46% -1.96% -0.94% 9.65% 10.07%
CLASS C SHARES Net Asset Value(3) 3.54% 3.08% - - 2.79% 3/1/02
With Sales Charge 2.54% 2.08% - - 2.79%
S&P 500(4) 3.28% 6.32% -2.94% 10.26% 11.99%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: -0.32% (1-year), -0.46% (5-year), 10.18% (10-year), 10.04%
(since inception)
Class B Shares: -0.55% (1-year), -0.69% (5-year), 10.05% (10-year), 10.28%
(since inception)
Class C Shares: 3.42% (1-year), 3.33% (since inception)
PORTFOLIO COMPOSITION (5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Financials 23% 24% -1%
Industrials 13% 10% +3%
Health Care 12% 13% -1%
Information Technology 12% 13% -1%
Consumer Discretionary 11% 12% -1%
Consumer Staples 10% 10% 0%
Energy 8% 8% 0%
Utilities 5% 3% +2%
Materials 1% 0% +1%
Telecommunication Services 1% 1% 0%
Cash Equivalents 4% 6% -2%
1 Performance reflects ongoing fund expenses, which may have been waived,and
assumes reinvestment of all dividends and capital gains. Performance does
not reflect the impact of federal, state, or municipal taxes. If it
did, performance would be lower. The West Coast Equity Fund's performance
in 1997 benefited from the agreement of WM Advisors and its affiliates to
limit the Fund's expenses.
2 Periods of less than one year are not annualized.
3 Net asset value is not adjusted for sales charge.
4
PORTFOLIO MANAGER
Philip M.Foreman, CFA West Coast Equity Fund
WM Advisors, Inc.
(5-5-4-3-2-0%); Class C shares: contingent deferred sales charge of 1%
on redemptions made during the first 12 months. See the prospectus for
details. Performance listed with sales charge reflects the maximum sales charge.
West Coast Equity Fund: Small-cap and mid-cap stocks may have additional risks,
including greater price volatility. There may be additional investment risks due
to the Fund's concentration in the West Coast region of the United States.
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------- ------- -------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 1.69% 6.47% 3.67% 15.69% 14.41% 11/24/86
With Sales Charge -3.90% 0.61% 2.50% 15.04% 14.05%
CLASS B SHARES Net Asset Value(3) 1.22% 5.47% 2.70% 14.87% 14.12% 3/30/94
With Sales Charge -3.78% 0.47% 2.34% 14.87% 14.12%
CLASS C SHARES Net Asset Value(3) 1.27% 5.55% - - 4.75% 3/1/02
With Sales Charge 0.27% 4.55% - - 4.75%
Russell 3000(R) Index(4) 3.69% 6.97% -2.21% 10.27% 11.10%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: 1.03% (1-year), 1.81% (5-year), 15.82% (10-year), 14.36% (since
inception)
Class B Shares: 0.94% (1-year), 1.65% (5-year), 15.65% (10-year), 14.64% (since
inception)
Class C Shares: 5.02% (1-year), 6.24% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CAHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Financials 18% 19% -1%
Information Technology 16% 17% -1%
Health Care 15% 12% +3%
Industrials 15% 15% 0%
Consumer Discretionary 14% 16% -2%
Energy 7% 7% 0%
Consumer Staples 4% 3% +1%
Materials 3% 3% 0%
REITs 3% 2% +1%
Telecommunication Services 1% 1% 0%
Cash Equivalents 4% 5% -1%
4 The S&P 500 is a broad-based index intended to represent the U.S. equity
market. The Russell 3000(R) Index measures the performance of the 3,000
largest U.S. companies based on total market capitalization, which
represents approximately 98% of the investable U.S. equity market. Returns
shown for the indices assume reinvestment of all dividends and
distributions. Since-inception returns shown for the S&P 500 are
calculated from 10/31/49. Since-inception returns shown for the Russell
3000(R) Index are calculated from 11/30/86. Indices are unmanaged, and
individuals cannot invest directly in an index.
5 May not reflect the current portfolio composition.
5
PORTFOLIO MANAGER
Mid Cap Stock Fund Daniel R. Coleman
WM Advisors, Inc.
[GRAPHIC]
Data shown is past performance and does not guarantee future results. Current
performance, including the most recent month-end results, which may be higher or
lower than the data shown, can be obtained by calling 800-222-5852. An
investment's return and principal value will fluctuate, so it may be worth more
or less upon redemption. A sales charge may apply as follows: Class A shares:
maximum up-front sales charge of 5.5%; Class B shares: contingent deferred sales
charge of 5%, which declines over 5 years
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year Since Inception Inception Date
---------- ------- ------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 5.83% 9.28% 10.83% 13.04% 3/1/00
With Sales Charge 0.02% 3.28% 9.57% 11.81%
CLASS B SHARES Net Asset Value(3) 5.29% 8.21% 9.81% 11.97% 3/1/00
With Sales Charge 0.29% 3.21% 9.53% 11.97%
CLASS C SHARES Net Asset Value(3) 5.35% 8.33% - 7.85% 3/1/02
With Sales Charge 4.35% 7.33% - 7.85%
S&P MidCap 400(4) 5.68% 9.74% 6.78% 7.49%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: 5.34% (1-year), 10.35% (5-year), 12.66% (since inception)
Class B Shares: 5.35% (1-year), 10.30% (5-year), 12.85% (since inception)
Class C Shares: 9.47% (1-year), 9.13% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Financials 17% 18% -1%
Consumer Discretionary 14% 15% -1%
Industrials 14% 13% +1%
Health Care 11% 9% +2%
Information Technology 11% 13% -2%
Energy 9% 7% +2%
Utilities 6% 5% +1%
Materials 5% 4% +1%
Consumer Staples 3% 4% -1%
REITs 2% 2% 0%
Telecommunication Services 0% 1% -1%
Cash Equivalents 8% 9% -1%
1 Performance reflects ongoing fund expenses, which may have been waived,
and assumes reinvestment of all dividends and capital gains. Performance
does not reflect the impact of federal, state, or municipal taxes. If it
did, performance would be lower. The Growth Fund's performance between
1999 and 2000 benefited from the agreement of WM Advisors and its
affiliates to limit the Fund's expenses.
2 Periods of less than one year are not annualized.
3 Net asset value is not adjusted for sales charge.
6
PORTFOLIO MANAGERS Growth Fund
Alan Blake, CFA E. Marc Pinto, CFA Jane Putnam, CFA
Salomon Brothers Asset Janus Capital Management OppenheimerFunds, Inc.
Management, Inc.
(5-5-4-3-2-0%); Class C shares: contingent deferred sales charge of 1% on
redemptions made during the first 12 months. See the prospectus for details.
Performance listed with sales charge reflects the maximum sales charge.
Mid Cap Stock Fund: Small-cap and mid-cap stocks may have additional
risks, including greater price volatility. Growth Fund: International investing
involves increased risks due to currency fluctuations, political or social
instability, and differences in accounting standards.
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------ ------- ------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 1.81% 3.31% -14.00% 9.04% 9.75% 4/5/93
With Sales Charge -3.79% -2.38% -14.97% 8.42% 9.24%
CLASS B SHARES Net Asset Value(3) 1.32% 2.34% -14.74% 8.36% 9.59% 7/1/94
With Sales Charge -3.68% -2.66% -15.51% 8.36% 9.59%
CLASS C SHARES Net Asset Value(3) 1.52% 2.62% - - -0.35% 3/1/02
With Sales Charge 0.52% 1.62% - - -0.35%
Russell 1000(R) Growth Index(4) 1.14% 0.40% -10.75% 7.71% 7.90%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: -3.04% (1-year), -16.31% (5-year), 8.96% (10-year), 9.45% (since
inception)
Class B Shares: -3.32% (1-year), -16.90% (5-year), 8.90% (10-year), 9.83% (since
inception)
Class C Shares: 0.89% (1-year), 0.15% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Information Technology 25% 24% +1%
Health Care 21% 18% +3%
Consumer Discretionary 20% 18% +2%
Industrials 10% 12% -2%
Financials 9% 9% 0%
Consumer Staples 7% 7% 0%
Energy 3% 5% -2%
Materials 2% 2% 0%
Telecommunication Services 1% 1% 0%
Cash Equivalents 2% 4% -2%
4 The S&P MidCap 400 is a weighted index of the common stocks of 400
mid-size companies. The Russell 1000(R) Growth Index measures the
performance of those Russell 1000(R) Index securities with higher
price-to-book ratios and higher forecasted growth values. Returns shown
for the indices assume reinvestment of all dividends and distributions.
Since-inception returns shown for the S&P MidCap 400 are calculated from
2/29/00. Since-inception returns shown for the Russell 1000(R) Growth
Index are calculated from 3/31/93. Indices are unmanaged, and individuals
cannot invest directly in an index.
5 May not reflect the current portfolio composition.
7
PORTFOLIO MANAGER
Small Cap Value Fund David W. Simpson, CFA
WM Advisors, Inc.
[GRAPHIC]
Data shown is past performance and does not guarantee future results. Current
performance, including the most recent month-end results, which may be higher or
lower than the data shown, can be obtained by calling 800-222-5852. An
investment's return and principal value will fluctuate, so it may be worth more
or less upon redemption. A sales charge may apply as follows: Class A shares:
maximum up-front sales charge of 5.5%; Class B shares: contingent deferred sales
charge of 5%, which declines over 5 years
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year Since Inception Inception Date
---------- ------ --------------- --------------
CLASS A SHARES Net Asset Value(3) 8.95% 21.54% 14.97% 3/1/04
With Sales Charge 2.95% 14.90% 9.58%
CLASS B SHARES Net Asset Value(3) 8.55% 20.44% 13.98% 3/1/04
With Sales Charge 3.55% 15.43% 9.79%
CLASS C SHARES Net Asset Value(3) 8.45% 20.55% 14.07% 3/1/04
With Sales Charge 6.45% 18.55% 14.07%
Russell 2000(R) Value Index(4) 1.52% 9.80% 4.75%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: 13.00% (1-year), 13.79% (since inception)
Class B Shares: 13.45% (1-year), 14.31% (since inception)
Class C Shares: 16.65% (1-year), 19.02% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Industrials 14% 15% -1%
Energy 13% 14% -1%
Materials 13% 10% +3%
Consumer Discretionary 9% 8% +1%
Financials 9% 11% -2%
Information Technology 9% 9% 0%
Health Care 7% 3% +4%
Consumer Staples 6% 7% -1%
Options 5% 3% +2%
REITs 5% 7% -2%
Telecommunication Services 2% 3% -1%
Utilities 1% 2% -1%
Cash Equivalents 7% 8% -1%
1 Performance reflects ongoing fund expenses, which may have been waived,
and assumes reinvestment of all dividends and capital gains. Performance
does not reflect the impact of federal, state, or municipal taxes. If it
did, performance would be lower. The Small Cap Growth Fund's performance
between 1998 and 1999 benefited from the agreement of WM Advisors and its
affiliates to limit the Fund's expenses.
2 Periods of less than one year are not annualized.
3 Net asset value is not adjusted for sales charge.
8
PORTFOLIO MANAGERS
Growth-Equity Group James W. Oberweis, CFA Small Cap Growth Fund
Delaware Management Company Oberweis Asset Management
(5-5-4-3-2-0%); Class C shares: contingent deferred sales charge of 1% on
redemptions made during the first 12 months. See the prospectus for details.
Performance listed with sales charge reflects the maximum sales charge.
Small-cap and mid-cap stocks may have additional risks, including greater price
volatility. Small Cap Value Fund: International investing involves increased
risks due to currency fluctuations, political or social instability, and
differences in accounting standards.
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------ ------ ------- --------------- --------------
CLASS A SHARES Net Asset Value(3) -9.39% -15.62% -10.69% 5.05% 6.94% 7/18/90
With Sales Charge -14.39% -20.24% -11.69% 4.45% 6.53%
CLASS B SHARES Net Asset Value(3) -9.95% -16.57% -11.60% 4.32% 5.11% 7/1/94
With Sales Charge -14.95% -21.57% -12.27% 4.32% 5.11%
CLASS C SHARES Net Asset Value(3) -9.75% -16.25% - - -2.98% 3/1/02
With Sales Charge -10.75% -17.25% - - -2.98%
Russell 2000(R) Growth Index(4) -1.98% -0.55% -5.83% 4.95% 6.73%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: -19.38% (1-year), -14.20% (5-year), 5.23% (10-year), 7.18%
(since inception)
Class B Shares: -20.62% (1-year), -14.85% (5-year), 5.11% (10-year), 5.97%
(since inception)
Class C Shares: -16.45% (1-year), -0.37% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
-------- --------- -------
Health Care 28% 22% +6%
Consumer Discretionary 17% 15% +2%
Industrials 11% 12% -1%
Internet Software & Services 9% 8% +1%
Financials 6% 8% -2%
Semiconductors &
Semiconductor Equipment 6% 2% +4%
Communications Equipment 4% 4% 0%
Consumer Staples 4% 4% 0%
Energy 4% 3% +1%
Computers & Peripherals 2% 1% +1%
IT Services 2% 2% 0%
Software 2% 11% -9%
Electronic Equipment &
Instruments 0% 4% -4%
Materials 0% 3% -3%
Telecommunication Services 0% 1% -1%
Cash Equivalents 5% 0% +5%
4 The Russell 2000(R) Value Index measures the performance of those Russell
2000(R) Index securities with lower price-to-book ratios and lower
forecasted growth values. The Russell 2000(R) Growth Index measures the
performance of those Russell 2000(R) Index securities with higher
price-to-book ratios and higher forecasted growth values. Returns shown
for the indices assume reinvestment of all dividends and
distributions. Since-inception returns shown for the Russell 2000(R) Value
Index are calculated from 2/29/04. Since-inception returns shown for the
Russell 2000(R) Growth Index are calculated from 7/31/90. Indices are
unmanaged, and individuals cannot invest directly in an index.
5 May not reflect the current portfolio composition.
9
PORTFOLIO MANAGER
International Growth Fund International Equity Team
Capital Guardian Trust Company
[GRAPHIC]
Data shown is past performance and does not guarantee future results. Current
performance, including the most recent month-end results, which may be higher or
lower than the data shown, can be obtained by calling 800-222-5852. An
investment's return and principal value will fluctuate, so it may be worth more
or less upon redemption. A sales charge may apply as follows: Class A shares:
maximum up-front sales charge of 5.5% (for the International Growth Fund) or
3.5% (for the Short Term Income Fund); Class B shares:
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------ ------ ------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 5.67% 8.98% -3.90% 3.23% 2.64% 7/18/90
With Sales Charge -0.19% 2.98% -4.99% 2.65% 2.25%
CLASS B SHARES Net Asset Value(3) 5.11% 7.81% -4.87% 2.53% 2.02% 7/1/94
With Sales Charge 0.11% 2.81% -5.36% 2.53% 2.02%
CLASS C SHARES Net Asset Value(3) 5.22% 7.93% - - 6.97% 3/1/02
With Sales Charge 4.22% 6.93% - - 6.97%
Morgan Stanley Capital
International EAFE Index(4) 8.95% 15.42% -0.19% 5.10% 5.27%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: 2.19% (1-year), -5.41% (5-year), 3.24% (10-year), 2.44% (since
inception)
Class B Shares: 1.86% (1-year), -5.78% (5-year), 3.13% (10-year), 2.28% (since
inception)
Class C Shares: 6.24% (1-year), 8.10% (since inception)
GEOGRAPHIC BREAKDOWN(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Japan 24% 22% +2%
United Kingdom 15% 18% -3%
France 11% 11% 0%
Switzerland 9% 10% -1%
Netherlands 8% 8% 0%
Germany 5% 5% 0%
Spain 5% 4% +1%
Canada 4% 4% 0%
Australia 2% 3% -1%
Hong Kong 2% 2% 0%
South Korea 1% 1% 0%
Sweden 1% 1% 0%
Other Countries 9% 7% +2%
Cash Equivalents 4% 4% 0%
1 Performance reflects ongoing fund expenses, which may have been waived,
and assumes reinvestment of all dividends and capital gains. Performance
does not reflect the impact of federal, state, or municipal taxes. If it
did, performance would be lower. The Short Term Income Fund's performance
between 1995 and 2005 benefited from the agreement of WM Advisors and its
affiliates to limit the Fund's expenses.
2 Periods of less than one year are not annualized.
3 Net asset value is not adjusted for sales charge.
10
PORTFOLIO MANAGER
Craig V. Sosey Short Term Income Fund
WM Advisors, Inc.
contingent deferred sales charge of 5% (for the International Growth Fund),
which declines over 5 years (5-5-4-3-2-0%), or 4% (for the Short Term Income
Fund), which declines over 4 years (4-4-3-2-0%); Class C shares: contingent
deferred sales charge of 1% on redemptions made during the first 12 months. See
the prospectus for details. Performance listed with sales charge reflects the
maximum sales charge. International Growth Fund: International investing
involves increased risks due to currency fluctuations, political or social
instability, and differences in accounting standards. Short Term Income Fund:
Fixed-income investments are subject to interest rate risk, and their value will
decline as interest rates rise.
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------ ------ ------- --------------- --------------
CLASS A SHARES Net Asset Value(3) -0.03% 1.66% 5.31% 5.35% 4.76% 11/1/93
With Sales Charge -3.67% -2.05% 4.58% 4.99% 4.44%
CLASS B SHARES Net Asset Value(3) -0.40% 0.90% 4.55% 4.72% 4.54% 7/1/94
With Sales Charge -4.39% -3.10% 4.55% 4.72% 4.54%
CLASS C SHARES Net Asset Value(3) -0.40% 0.90% - - 2.76% 3/1/02
With Sales Charge -1.40% -0.11% - - 2.76%
Citigroup Broad Investment-Grade
Credit 1-3 Years Index(4) 0.09% 1.81% 6.06% 6.21% 5.96%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: -4.04% (1-year), 4.44% (5-year), 5.01% (10-year), 4.40% (since
inception)
Class B Shares: -5.21% (1-year), 4.41% (5-year), 4.74% (10-year), 4.51% (since
inception)
Class C Shares: -2.22% (1-year), 2.61% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Domestic Corporate Bonds 53% 53% 0%
Mortgage-Backed Bonds 16% 11% +5%
U.S. Government Agency 10% 13% -3%
Asset-Backed Bonds 5% 7% -2%
Foreign Corporate Bonds (U.S. $) 4% 4% 0%
U.S. Treasuries 4% 4% 0%
Cash Equivalents 8% 8% 0%
4 The Morgan Stanley Capital International (MSCI) EAFE Index is a
broad-based, capitalization-weighted index of equity markets representing
21 countries in Europe, Australasia, and the Far East. The Citigroup Broad
Investment-Grade Credit 1-3 Years Index measures the performance of bonds,
including U.S. and non-U.S. corporate securities and non-U.S. sovereign
and provincial securities, with maturities between one and three years.
Returns shown for the indices assume reinvestment of all dividends and
distributions. Since-inception returns shown for the MSCI EAFE Index are
calculated from 7/31/90. Since-inception returns shown for the Citigroup
Broad Investment-Grade Credit 1-3 Years Index are calculated from
10/31/93. Indices are unmanaged, and individuals cannot invest directly in
an index.
5 May not reflect the current portfolio composition.
11
PORTFOLIO MANAGER
U.S. Government Securities Fund Craig V. Sosey
WM Advisors, Inc.
[GRAPHIC]
Data shown is past performance and does not guarantee future results. Current
performance, including the most recent month-end results, which may be higher or
lower than the data shown, can be obtained by calling 800-222-5852. An
investment's return and principal value will fluctuate, so it may be worth more
or less upon redemption. A sales charge may apply as follows: Class A shares:
maximum up-front sales charge of 4.5%; Class B shares: contingent deferred sales
charge of 5%, which declines over 5 years
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------ ------ ------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 1.02% 4.32% 6.05% 6.26% 7.79% 5/4/84
With Sales Charge -3.51% -0.41% 5.07% 5.77% 7.56%
CLASS B SHARES Net Asset Value(3) 0.65% 3.57% 5.29% 5.59% 5.56% 3/30/94
With Sales Charge -4.35% -1.43% 4.96% 5.59% 5.56%
CLASS C SHARES Net Asset Value(3) 0.57% 3.50% - - 3.14% 3/1/02
With Sales Charge -0.43% 2.50% - - 3.14%
Citigroup Mortgage Index(4) 1.43% 5.67% 7.09% 6.98% 9.36%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: -3.03% (1-year), 4.85% (5-year), 5.81% (10-year), 7.53% (since
inception)
Class B Shares: -4.17% (1-year), 4.73% (5-year), 5.62% (10-year), 5.50% (since
inception)
Class C Shares: -0.14% (1-year), 2.90% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
FHLMC 31% 34% -3%
FNMA 30% 27% +3%
CMOs 17% 17% 0%
GNMA 9% 10% -1%
U.S. Treasuries 6% 6% 0%
U.S. Government Agency 4% 3% +1%
Cash Equivalents 3% 3% 0%
1 Performance reflects ongoing fund expenses, which may have been waived,
and assumes reinvestment of all dividends and capital gains. Performance
does not reflect the impact of federal, state, or municipal taxes. If it
did, performance would be lower. The U.S. Government Securities Fund's
performance between 1998 and 2000 benefited from the agreement of WM
Advisors and its affiliates to limit the Fund's expenses. On 3/1/04, the
investment policies of the Fund were modified. As a result, the Fund's
performance for periods prior to that date may not be representative of
the performance it would have achieved had its current investment policies
been in place. The Income Fund's performance in 1999 benefited from the
agreement of WM Advisors and its affiliates to limit the Fund's expenses.
2 Periods of less than one year are not annualized.
3 Net asset value is not adjusted for sales charge.
12
PORTFOLIO MANAGERS
Gary J. Pokrzywinski, CFA and Income Fund
John R. Freidl, CFA
WM Advisors, Inc.
(5-5-4-3-2-0%); Class C shares: contingent deferred sales charge of 1% on
redemptions made during the first 12 months. See the prospectus for details.
Performance listed with sales charge reflects the maximum sales charge.
Fixed-income investments are subject to interest rate risk, and their value will
decline as interest rates rise. U.S. Government Securities Fund: Neither the
principal of government bond funds nor their yields are guaranteed by the
U.S. government. Income Fund: Lower-rated securities are subject to additional
credit and default risks.
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------ ------ ------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 0.40% 4.97% 7.42% 7.33% 8.54% 12/15/75
With Sales Charge -4.16% 0.22% 6.42% 6.84% 8.37%
CLASS B SHARES Net Asset Value(3) 0.04% 4.21% 6.65% 6.69% 6.54% 3/30/94
With Sales Charge -4.96% -0.79% 6.34% 6.69% 6.54%
CLASS C SHARES Net Asset Value(3) 0.05% 4.21% - - 5.53% 3/1/02
With Sales Charge -0.95% 3.21% - - 5.53%
Citigroup Broad Investment-Grade
Bond Index(4) 1.01% 5.39% 7.52% 7.16% -
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: -3.37% (1-year), 6.16% (5-year), 6.95% (10-year), 8.37% (since
inception)
Class B Shares: -4.56% (1-year), 6.05% (5-year), 6.78% (10-year), 6.52% (since
inception)
Class C Shares: -0.56% (1-year), 5.44% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Domestic Corporate Bonds 57% 57% 0%
Mortgage-Backed Bonds 22% 23% -1%
Foreign Corporate
Bonds (U.S. $) 7% 6% +1%
U.S. Treasuries 7% 6% +1%
Foreign Government
Bonds (U.S. $) 2% 2% 0%
Cash Equivalents 5% 6% -1%
4 The Citigroup Mortgage Index represents the mortgage-backed securities
component of Citigroup's Broad Investment-Grade Bond Index. It consists of
30-and 15-year agency-issued (GNMA, FNMA, and FHLMC) pass-through
securities as well as FNMA and FHLMC balloon mortgages. The Citigroup
Broad Investment-Grade Bond Index measures the performance of bonds,
including U.S. and non-U.S. corporate securities and non-U.S. sovereign
and provincial securities. It includes institutionally traded U.S.
Treasury, government-sponsored, mortgage, asset-backed, and
investment-grade securities. Returns shown for the indices assume
reinvestment of all dividends and distributions. Since-inception returns
shown for the Citigroup Mortgage Index are calculated from 4/30/84.
Indices are unmanaged, and individuals cannot invest directly in an index.
5 May not reflect the current portfolio composition.
13
PORTFOLIO MANAGER
High Yield Fund Gary J. Pokrzywinski, CFA
WM Advisors, Inc.
[GRAPHIC]
Data shown is past performance and does not guarantee future results. Current
performance, including the most recent month-end results, which may be higher or
lower than the data shown, can be obtained by calling 800-222-5852. An
investment's return and principal value will fluctuate, so it may be worth more
or less upon redemption. A sales charge may apply as follows: Class A shares:
maximum up-front sales charge of 4.5%; Class B shares: contingent deferred sales
charge of 5%, which declines over 5 years (5-5-4-3-2-0%); Class C shares:
contingent deferred sales charge of 1% on
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year Since Inception Inception Date
---------- ------ ------ --------------- --------------
CLASS A SHARES Net Asset Value(3) 0.43% 7.33% 7.35% 6.77% 4/8/98
With Sales Charge -4.09% 2.49% 6.36% 6.08%
CLASS B SHARES Net Asset Value(3) 0.06% 6.52% 6.57% 6.15% 5/5/98
With Sales Charge -4.95% 1.52% 6.26% 6.15%
CLASS C SHARES Net Asset Value(3) 0.07% 6.53% - 10.47% 3/1/02
With Sales Charge -0.93% 5.53% - 10.47%
Citigroup High Yield Market Index(4) -0.31% 6.09% 7.09% 4.81%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: -0.06% (1-year), 6.62% (5-year), 6.21% (since inception)
Class B Shares: -1.16% (1-year), 6.53% (5-year), 6.30% (since inception)
Class C Shares: 2.86% (1-year), 10.93% (since inception)
PORTFOLIO COMPOSITION(5)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Domestic Corporate Bonds 81% 79% +2%
Equities 8% 8% 0%
Foreign Corporate
Bonds (U.S. $) 6% 6% 0%
Foreign Government
Bonds (U.S. $) 5% 5% 0%
Cash Equivalents 0% 2% -2%
1 Performance reflects ongoing fund expenses, which may have been waived,
and assumes reinvestment of all dividends and capital gains. Performance
does not reflect the impact of federal, state, or municipal taxes. If it
did, performance would be lower. The High Yield Fund's performance between
1998 and 1999 benefited from the agreement of WM Advisors and its
affiliates to limit the Fund's expenses. The Tax-Exempt Bond Fund's
performance in 2000 benefited from the agreement of WM Advisors and its
affiliates to limit the Fund's expenses.
2 Periods of less than one year are not annualized.
3 Net asset value is not adjusted for sales charge.
14
PORTFOLIO MANAGER
Thomas M. Byron Tax-Exempt Bond Fund
Van Kampen Asset Management
redemptions made during the first 12 months. See the prospectus for details.
Performance listed with sales charge reflects the maximum sales charge.
Fixed-income investments are subject to interest rate risk, and their value will
decline as interest rates rise.
High Yield Fund: Lower-rated securities are subject to additional credit and
default risks. International investing involves increased risks due to currency
fluctuations, political or social instability, and differences in accounting
standards. REIT securities are subject to risk factors associated with the real
estate industry and tax factors of REIT registration. Tax-Exempt Bond Fund: A
portion of the Fund's income may be subject to state and/or local taxes, and it
may be subject to federal alternative minimum tax (AMT) for certain investors.
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------ ------ ------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 1.57% 6.44% 6.55% 5.64% 5.98% 1/3/77
With Sales Charge -2.94% 1.59% 5.57% 5.16% 5.81%
CLASS B SHARES Net Asset Value(3) 1.20% 5.66% 5.77% 4.98% 5.06% 3/30/94
With Sales Charge -3.80% 0.65% 5.45% 4.98% 5.06%
CLASS C SHARES Net Asset Value(3) 1.20% 5.66% - - 4.55% 3/1/02
With Sales Charge 0.20% 4.66% - - 4.55%
Lehman Brothers Municipal Bond Index(4) 1.95% 6.82% 7.03% 6.48% -
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: -2.71% (1-year), 5.07% (5-year), 4.98% (10-year), 5.77% (since
inception)
Class B Shares: -3.83% (1-year), 4.93% (5-year), 4.81% (10-year), 4.94% (since
inception)
Class C Shares: 0.18% (1-year), 4.14% (since inception)
PORTFOLIO COMPOSITION(5,6)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Aaa 72% 73% -1%
Aa 18% 19% -1%
A 4% 4% 0%
Baa 3% 2% +1%
Ba or lower 0% 1% -1%
Not Rated/Other 3% 1% +2%
4 The Citigroup High Yield Market Index measures the performance of
below-investment-grade debt issued by corporations domiciled in the U.S.
or Canada. The Lehman Brothers Municipal Bond Index is a total return
performance benchmark for the long-term, investment-grade, tax-exempt bond
market. Returns shown for the indices assume reinvestment of all dividends
and distributions. Since-inception returns shown for the Citigroup High
Yield Market Index are calculated from 3/31/98. Indices are unmanaged, and
individuals cannot invest directly in an index.
5 May not reflect the current portfolio composition.
6 Ratings are provided by Moody's Investors Service (Moody's). If an issue
is not rated by Moody's, its Standard & Poor's rating is converted to the
equivalent Moody's rating and incorporated (non-rated issues are not
classified by either rating service). The ratings represent the company's
opinion of the credit quality of securities and are intended to reflect
the issuer's ability to pay back principal and interest.
15
PORTFOLIO MANAGER
California Municipal Fund Joseph A. Piraro
Van Kampen Asset Management
[GRAPHIC]
Data shown is past performance and does not guarantee future results. Current
performance, including the most recent month-end results, which may be higher or
lower than the data shown, can be obtained by calling 800-222-5852. An
investment's return and principal value will fluctuate, so it may be worth more
or less upon redemption. A sales charge may apply as follows: Class A shares:
maximum up-front sales charge of 4.5%; Class B shares: contingent deferred sales
charge of 5%, which declines over 5 years
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------ ------ ------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 2.21% 7.75% 6.60% 6.08% 6.41% 7/25/89
With Sales Charge -2.41% 2.92% 5.62% 5.60% 6.10%
CLASS B SHARES Net Asset Value(3) 1.83% 6.96% 5.81% 5.45% 5.55% 7/1/94
With Sales Charge -3.17% 1.96% 5.49% 5.45% 5.55%
CLASS C SHARES Net Asset Value(3) 1.83% 6.96% - - 4.43% 3/1/02
With Sales Charge 0.83% 5.96% - - 4.43%
Lehman Brothers Municipal Bond Index(4) 1.95% 6.82% 7.03% 6.48% 6.92%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: -1.40% (1-year), 5.11% (5-year), 5.44% (10-year), 6.02% (since
inception)
Class B Shares: -2.49% (1-year), 4.98% (5-year), 5.29% (10-year), 5.43% (since
inception)
Class C Shares: 1.51% (1-year), 4.00% (since inception)
PORTFOLIO COMPOSITION(5,6)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Aaa 70% 68% +2%
Aa 4% 4% 0%
A 6% 9% -3%
Baa 12% 11% +1%
Not Rated/Other 8% 8% 0%
1 Performance reflects ongoing fund expenses, which may have been waived,
and assumes reinvestment of all dividends and capital gains. Performance
does not reflect the impact of federal, state, or municipal taxes. If it
did, performance would be lower. The California Municipal Fund's
performance between 1995 and 1999 benefited from the agreement of WM
Advisors and its affiliates to limit the Fund's expenses. The California
Insured Intermediate Municipal Fund's performance between 1995 and 2003
benefited from the agreement of WM Advisors and its affiliates to limit
the Fund's expenses.
2 Periods of less than one year are not annualized.
3 Net asset value is not adjusted for sales charge.
16
PORTFOLIO MANAGER
Joseph A. Piraro California Insured Intermediate Municipal Fund
Van Kampen Asset Management
(5-5-4-3-2-0%); Class C shares: contingent deferred sales charge of 1% on
redemptions made during the first 12 months. See the prospectus for details.
Performance listed with sales charge reflects the maximum sales charge.
Fixed-income investments are subject to interest rate risk, and their value will
decline as interest rates rise. A portion of the Funds' income may be subject to
state and/or local taxes, and it may be subject to federal alternative minimum
tax (AMT) for certain investors.
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
6-Month(2) 1-Year 5-Year 10-Year Since Inception Inception Date
---------- ------ ------ ------- --------------- --------------
CLASS A SHARES Net Asset Value(3) 0.66% 4.76% 5.61% 5.39% 5.69% 4/4/94
With Sales Charge -3.83% 0.07% 4.65% 4.91% 5.25%
CLASS B SHARES Net Asset Value(3) 0.28% 3.98% 4.82% 4.76% 5.02% 7/1/94
With Sales Charge -4.72% -1.02% 4.49% 4.76% 5.02%
CLASS C SHARES Net Asset Value(3) 0.27% 3.97% - - 3.34% 3/1/02
With Sales Charge -0.73% 2.97% - - 3.34%
Lehman Brothers Municipal Bond Index(4) 1.95% 6.82% 7.03% 6.48% 6.52%
Average annual total returns(1) (with sales charge) as of 3/31/05:
Class A Shares: -3.75% (1-year), 4.23% (5-year), 4.75% (10-year), 5.15% (since
inception)
Class B Shares: -4.93% (1-year), 4.07% (5-year), 4.60% (10-year), 4.91% (since
inception)
Class C Shares: -0.95% (1-year), 2.94% (since inception)
PORTFOLIO COMPOSITION(5,6)
As of
4/30/05
[PIE CHART]
As of As of
4/30/05 10/31/04 Change
------- -------- ------
Aaa 94% 95% -1%
Aa 2% 2% 0%
Baa 3% 2% +1%
Not Rated 1% 1% 0%
4 The Lehman Brothers Municipal Bond Index is a total return performance
benchmark for the long-term, investment-grade, tax-exempt bond market.
Returns shown for the index assume reinvestment of all dividends and
distributions. Since-inception returns shown for the index are calculated
from 7/31/89 (California Municipal Fund) and 3/31/94 (California Insured
Intermediate Municipal Fund). Indices are unmanaged, and individuals
cannot invest directly in an index.
5 May not reflect the current portfolio composition.
6 Ratings are provided by Moody's Investors Service (Moody's). If an issue
is not rated by Moody's, its Standard & Poor's rating is converted to the
equivalent Moody's rating and incorporated (non-rated issues are not
classified by either rating service). The ratings represent the company's
opinion of the credit quality of securities and are intended to reflect
the issuer's ability to pay back principal and interest.
17
PORTFOLIO MANAGER
Money Funds Scott J. Peterson, CFA
WM Advisors, Inc.
[GRAPHIC]
Data shown is past performance and does not guarantee future results. Current
performance, including the most recent month-end results, which may be higher or
lower, can be obtained by calling 800-222-5852. An investment's return and
principal value will fluctuate, so it may be worth more or less upon redemption.
For shares of the Money Market Fund, a contingent deferred sales charge may
apply as follows: Class B shares: 5%, which declines over 5 years
(5-5-4-3-2-0%); Class C shares: 1% on
AVERAGE ANNUAL TOTAL RETURNS(1) AS OF APRIL 30, 2005
Since Inception
6-Month(2) 1-Year 5-Year 10-Year of Class C Shares Inception Date
---------- ------ ------ ------- ----------------- --------------
MONEY MARKET FUND
CLASS A SHARES Net Asset Value(3) 0.89% 1.34% 2.26% 3.60% N/A 11/19/79
CLASS B SHARES Net Asset Value(3) 0.34% 0.37% 1.32% 2.80% N/A 5/2/94
With Sales Charge -4.66% -4.63% 0.94% 2.80% N/A
CLASS C SHARES Net Asset Value(3) 0.34% 0.38% - - 0.20% 3/1/02
With Sales Charge -0.66% -0.63% - - 0.20%
TAX-EXEMPT MONEY MARKET FUND
CLASS A SHARES Net Asset Value(3) 0.55% 0.80% 1.37% 2.22% N/A 1/28/88
CALIFORNIA MONEY FUND
CLASS A SHARES Net Asset Value(3) 0.58% 0.92% 1.29% 1.97% N/A 7/10/89
FUND YIELDS(4) AS OF APRIL 30, 2005
7-Day 7-Day
Simple Yield Effective Yield
(Class A Shares) (Class A Shares)
---------------- ----------------
MONEY MARKET FUND 2.25% 2.28%
TAX-EXEMPT MONEY MARKET FUND 2.07% 2.09%
CALIFORNIA MONEY FUND 2.16% 2.19%
Fund yields(4) as of 3/31/05:
Money Market Fund (Class A Shares): 2.10% (7-day simple yield), 2.12% (7-day
effective yield)
Tax-Exempt Money Market Fund (Class A Shares): 1.35% (7-day simple yield),
1.36% (7-day effective yield)
California Money Fund (Class A Shares): 1.43% (7-day simple yield), 1.44%
(7-day effective yield)
1 Performance reflects ongoing fund expenses, which may have been waived,
and assumes reinvestment of all dividends and capital gains. Performance
does not reflect the impact of federal, state, or municipal taxes. If it
did, performance would be lower. The Money Funds' performance between the
following dates benefited from the agreement of WM Advisors and its
affiliates to limit the Funds' expenses: 1995 and 2004 (Money Market
Fund); 1995 and 2005 (Tax-Exempt Money Market Fund and California Money
Fund).
2 Periods of less than one year are not annualized.
3 Net asset value is not adjusted for sales charge.
4 The 7-day simple yield is calculated based on the income generated by an
investment in the Fund over a 7-day period and is expressed as an annual
percentage rate. The 7-day effective yield is calculated similarly to the
7-day simple yield but assumes that income earned from the Fund's
investments is reinvested and compounded.
18
redemptions made during the first 12 months. See the prospectus for details.
Performance listed with sales charge reflects the maximum sales charge.
An investment in the Funds is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Funds seek to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Funds. A portion of the Tax-Exempt Money Market and
California Money Funds' income may be subject to state and/or local taxes, and
it may be subject to federal alternative minimum tax (AMT) for certain
investors.
The 7-day simple yield more closely reflects current Fund earnings than the
total return data.
MONEY MARKET FUND PORTFOLIO COMPOSITION(5)
As of
4/30/05
-------
Corporate Bonds and Notes 36%
Taxable Municipal Bonds 28%
Medium Term Notes 15%
Commercial Paper (Domestic and Yankee) 6%
U.S.Government Agency Obligations 4%
Certificates of Deposit (Yankee) 3%
Other 8%
TAX-EXEMPT MONEY MARKET FUND PORTFOLIO COMPOSITION(5)
As of
4/30/05
-------
Washington 16%
California 9%
Illinois 9%
Arizona 8%
Texas 7%
Florida 6%
Iowa 6%
Kansas 5%
Kentucky 5%
Ohio 5%
North Dakota 4%
Colorado 3%
Georgia 3%
Utah 3%
North Carolina 2%
Oklahoma 2%
Oregon 2%
Tennessee 2%
Other 3%
CALIFORNIA MONEY FUND PORTFOLIO COMPOSITION(5)
As of
4/30/05
-------
Municipal Bonds and Notes - California 97%
Municipal Bonds and Notes - Puerto Rico 1%
Other 2%
5 May not reflect the current portfolio composition.
19
Expense Information
WM GROUP OF FUNDS
As a shareholder of the REIT Fund, Equity Income Fund, Growth & Income Fund,
West Coast Equity Fund, Mid Cap Stock Fund, Growth Fund, Small Cap Value Fund,
Small Cap Growth Fund, International Growth Fund, Short Term Income Fund, U.S.
Government Securities Fund, High Yield Fund, Tax-Exempt Bond Fund, California
Municipal Fund, California Insured Intermediate Municipal Fund, Money Market
Fund, Tax-Exempt Money Market Fund or California Money Fund (the "Funds), you
incur two types of costs: (1) transaction costs, including sales charges (loads)
on purchase of Class A and, if applicable, contingent deferred sales charges on
redemption of shares and redemption fees and (2) ongoing costs, including
management fees, distribution and/or service fees, and other Fund expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the Funds and to compare these costs with the ongoing costs of
investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period November 1, 2004 to April 30, 2005.
ACTUAL EXPENSES:
The first section of the table below provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the third column under the heading entitled "Expenses Paid During
Period" to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES:
The second section of the table below provides information about hypothetical
account values and hypothetical expenses based on each Fund's actual expense
ratios and an assumed rate of return of 5% per year before expenses (rather than
each Fund's actual rate of return). The hypothetical account values and expenses
may not be used to estimate the actual ending balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Funds and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the hypothetical section of the table is useful in
comparing ongoing costs only, and will not help you compare the relative total
costs of owning different funds. In addition, if these transactional costs were
included, the cost shown would have been higher.
HYPOTHETICAL
ACTUAL EXPENSES (5% RETURN BEFORE EXPENSES)
----------------------------------- --------------------------------------------
EXPENSES EXPENSES
BEGINNING ENDING PAID DURING BEGINNING ENDING PAID DURING
ACCOUNT ACCOUNT PERIOD* ACCOUNT ACCOUNT PERIOD*
VALUE VALUE 11/01/2004- VALUE VALUE 11/01/2004- EXPENSE
11/01/2004 04/30/2005 04/30/2005 11/01/2004 04/30/2005 04/30/2005 RATIO
---------- ---------- ----------- ---------- ---------- ----------- -------
REIT Fund
Class A ......................... $1,000 $1,063 $ 6.70 $1,000 $1,018 $ 6.56 1.31%
Class B ......................... 1,000 1,059 10.57 1,000 1,015 10.34 2.07%
Class C ......................... 1,000 1,059 10.21 1,000 1,015 9.99 2.00%
Class I ......................... 1,000 1,065 4.30 1,000 1,021 4.21 0.84%
Equity Income Fund
Class A ......................... $1,000 $1,080 $ 4.54 $1,000 $1,020 $ 4.41 0.88%
Class B ......................... 1,000 1,076 9.16 1,000 1,016 8.90 1.78%
Class C ......................... 1,000 1,077 8.65 1,000 1,016 8.40 1.68%
Class I ......................... 1,000 1,082 2.89 1,000 1,022 2.81 0.56%
Growth & Income Fund
Class A ......................... $1,000 $1,041 $ 4.50 $1,000 $1,020 $ 4.46 0.89%
Class B ......................... 1,000 1,035 9.74 1,000 1,015 9.64 1.93%
Class C ......................... 1,000 1,035 9.64 1,000 1,015 9.54 1.91%
Class I ......................... 1,000 1,042 2.84 1,000 1,022 2.81 0.56%
West Coast Equity Fund
Class A ......................... $1,000 $1,017 $ 4.50 $1,000 $1,020 $ 4.51 0.90%
Class B ......................... 1,000 1,012 9.28 1,000 1,016 9.30 1.86%
Class C ......................... 1,000 1,013 8.93 1,000 1,016 8.95 1.79%
Class I ......................... 1,000 1,019 2.85 1,000 1,022 2.86 0.57%
Mid Cap Stock Fund
Class A ......................... $1,000 $1,058 $ 5.72 $1,000 $1,019 $ 5.61 1.12%
Class B ......................... 1,000 1,053 10.89 1,000 1,014 10.69 2.14%
Class C ......................... 1,000 1,053 10.23 1,000 1,015 10.04 2.01%
Class I ......................... 1,000 1,060 4.03 1,000 1,021 3.96 0.79%
20
Expense Information (continued)
WM GROUP OF FUNDS
HYPOTHETICAL
ACTUAL EXPENSES (5% RETURN BEFORE EXPENSES)
----------------------------------- --------------------------------------------
EXPENSES EXPENSES
BEGINNING ENDING PAID DURING BEGINNING ENDING PAID DURING
ACCOUNT ACCOUNT PERIOD* ACCOUNT ACCOUNT PERIOD*
VALUE VALUE 11/01/2004- VALUE VALUE 11/01/2004- EXPENSE
11/01/2004 04/30/2005 04/30/2005 11/01/2004 04/30/2005 04/30/2005 RATIO
---------- ---------- ----------- ---------- ---------- ----------- -------
Growth Fund
Class A ...................................... $1,000 $1,018 $ 7.21 $1,000 $1,018 $ 7.20 1.44%
Class B ...................................... 1,000 1,013 11.93 1,000 1,013 11.93 2.39%
Class C ...................................... 1,000 1,015 10.59 1,000 1,014 10.59 2.12%
Class I ...................................... 1,000 1,022 4.16 1,000 1,021 4.16 0.83%
Small Cap Value Fund
Class A ...................................... $1,000 $1,090 $ 6.74 $1,000 $1,018 $ 6.51 1.30%
Class B ...................................... 1,000 1,085 11.27 1,000 1,014 10.89 2.18%
Class C ...................................... 1,000 1,084 11.27 1,000 1,014 10.89 2.18%
Class I ...................................... 1,000 1,092 4.72 1,000 1,020 4.56 0.91%
Small Cap Growth Fund
Class A ...................................... $1,000 $ 906 $ 7.14 $1,000 $1,017 $ 7.55 1.51%
Class B ...................................... 1,000 901 12.39 1,000 1,012 13.12 2.63%
Class C ...................................... 1,000 903 11.09 1,000 1,013 11.73 2.35%
Class I ...................................... 1,000 909 4.64 1,000 1,020 4.91 0.98%
International Growth Fund
Class A ...................................... $1,000 $1,057 $ 7.19 $1,000 $1,018 $ 7.05 1.41%
Class B ...................................... 1,000 1,051 12.61 1,000 1,012 12.37 2.48%
Class C ...................................... 1,000 1,052 11.86 1,000 1,013 11.63 2.33%
Class I ...................................... 1,000 1,059 4.85 1,000 1,020 4.76 0.95%
Short Term Income Fund
Class A ...................................... $1,000 $1,000 $ 4.07 $1,000 $1,021 $ 4.11 0.82%
Class B ...................................... 1,000 996 7.77 1,000 1,017 7.85 1.57%
Class C ...................................... 1,000 996 7.77 1,000 1,017 7.85 1.57%
Class I ...................................... 1,000 1,001 2.83 1,000 1,022 2.86 0.57%
U.S. Government Securities Fund
Class A ...................................... $1,000 $1,010 $ 4.64 $1,000 $1,020 $ 4.66 0.93%
Class B ...................................... 1,000 1,006 8.31 1,000 1,017 8.35 1.67%
Class C ...................................... 1,000 1,006 8.16 1,000 1,017 8.20 1.64%
Class I ...................................... 1,000 1,012 2.69 1,000 1,022 2.71 0.54%
Income Fund
Class A ...................................... $1,000 $1,004 $ 4.57 $1,000 $1,020 $ 4.61 0.92%
Class B ...................................... 1,000 1,000 8.23 1,000 1,017 8.30 1.66%
Class C ...................................... 1,000 1,000 8.18 1,000 1,017 8.25 1.65%
Class I ...................................... 1,000 1,006 2.74 1,000 1,022 2.76 0.55%
High Yield Fund
Class A ...................................... $1,000 $1,004 $ 4.52 $1,000 $1,020 $ 4.56 0.91%
Class B ...................................... 1,000 1,001 8.38 1,000 1,016 8.45 1.69%
Class C ...................................... 1,000 1,001 8.23 1,000 1,017 8.30 1.66%
Class I ...................................... 1,000 1,006 2.93 1,000 1,022 2.96 0.59%
Tax-Exempt Bond Fund
Class A ...................................... $1,000 $1,016 $ 4.40 $1,000 $1,020 $ 4.41 0.88%
Class B ...................................... 1,000 1,012 8.08 1,000 1,017 8.10 1.62%
Class C ...................................... 1,000 1,012 8.08 1,000 1,017 8.10 1.62%
California Municipal Fund
Class A ...................................... $1,000 $1,006 $ 4.23 $1,000 $1,021 $ 4.26 0.85%
Class B ...................................... 1,000 1,022 7.97 1,000 1,017 7.95 1.59%
Class C ...................................... 1,000 1,018 7.96 1,000 1,017 7.95 1.59%
California Insured Intermediate Municipal Fund
Class A ...................................... $1,000 $1,007 $ 4.28 $1,000 $1,021 $ 4.31 0.86%
Class B ...................................... 1,000 1,003 8.00 1,000 1,017 8.05 1.61%
Class C ...................................... 1,000 1,003 8.14 1,000 1,017 8.20 1.64%
Money Market Fund
Class A ...................................... $1,000 $1,009 $ 2.99 $1,000 $1,022 $ 3.01 0.60%
Class B ...................................... 1,000 1,003 8.44 1,000 1,016 8.50 1.70%
Class C ...................................... 1,000 1,003 8.44 1,000 1,016 8.50 1.70%
Class I ...................................... 1,000 1,009 2.69 1,000 1,022 2.71 0.54%
Tax-Exempt Money Market Fund
Class A ...................................... $1,000 $1,006 $ 3.73 $1,000 $1,021 $ 3.76 0.75%
California Money Fund
Class A ...................................... $1,000 $1,006 $ 3.43 $1,000 $1,021 $ 3.46 0.69%
* Expenses are equal to each Fund's annualized expense ratio, multiplied by the
average account value over the period, multiplied by the 181 days in the most
recent fiscal half-year, divided by 365 days in the year (to reflect the
one-half year period)
21
Financial Statements:
Portfolio of Investments
REIT FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000S)
- ------ ------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 88.1%
DIVERSIFIED - 4.3%
163,000 iStar Financial Inc. .................................. $ 6,494
127,000 Vornado Realty Trust .................................. 9,709
--------
Total Diversified ..................................... 16,203
--------
HEALTH CARE - 3.7%
280,000 Health Care Property Investors, Inc.** ................ 7,179
184,000 Healthcare Realty Trust, Inc.** ....................... 7,104
--------
Total Health Care ..................................... 14,283
--------
INDUSTRIAL/OFFICE - 25.8%
INDUSTRIAL - 4.9%
183,200 AMB Property Corporation .............................. 7,143
291,000 ProLogis .............................................. 11,520
--------
18,663
--------
MIXED - 1.9%
228,000 Duke Realty Corporation ............................... 6,977
--------
OFFICE - 19.0%
207,000 Alexandria Real Estate Equities, Inc. ................. 14,246
143,000 Arden Realty, Inc. .................................... 5,104
148,000 Boston Properties, Inc. ............................... 9,838
228,000 CarrAmerica Realty Corporation ........................ 7,533
495,000 Corporate Office Properties Trust ..................... 13,018
473,000 Equity Office Properties Trust ........................ 14,885
125,000 SL Green Realty Corporation ........................... 7,625
--------
72,249
--------
Total Industrial/Office ............................... 97,889
--------
LODGING/RESORTS - 5.6%
490,000 Equity Inns, Inc. ..................................... 5,517
110,500 FelCor Lodging Trust, Inc.+ ........................... 1,353
195,000 Hospitality Properties Trust .......................... 8,147
370,000 Host Marriott Corporation ............................. 6,223
--------
Total Lodging/Resorts ................................. 21,240
--------
MORTGAGE/FINANCIAL - 2.4%
215,300 Annaly Mortgage Management, Inc.** .................... 4,117
122,000 Friedman, Billings, Ramsey Group, Inc., Class A** ..... 1,475
70,500 Redwood Trust, Inc. ................................... 3,533
--------
Total Mortgage/Financial .............................. 9,125
--------
RESIDENTIAL - 11.3%
APARTMENTS - 11.3%
200,000 AvalonBay Communities, Inc. ........................... 14,400
481,000 Equity Residential .................................... 16,523
541,000 United Dominion Realty Trust, Inc. .................... 11,983
--------
Total Residential ..................................... 42,906
--------
RETAIL - 26.4%
REGIONAL MALLS - 16.5%
350,000 General Growth Properties, Inc. ....................... 13,689
261,000 Macerich Company ...................................... 15,738
253,000 Mills Corporation ..................................... 14,456
288,000 Simon Property Group, Inc. ............................ 19,028
--------
62,911
--------
SHOPPING CENTERS - 9.9%
313,000 Developers Diversified Realty Corporation ............. 13,284
232,700 Kimco Realty Corporation .............................. 12,889
187,000 Pan Pacific Retail Properties, Inc. ................... 11,299
--------
37,472
--------
Total Retail .......................................... 100,383
--------
SELF STORAGE - 2.8%
135,000 Public Storage, Inc. .................................. 7,925
65,000 Shurgard Storage Centers, Inc., Class A ............... 2,719
--------
Total Self Storage .................................... 10,644
--------
SPECIALTY - 5.8%
318,000 Capital Automotive REIT ............................... 10,806
124,500 Global Signal Inc. .................................... 3,715
215,000 Plum Creek Timber Company, Inc. ....................... 7,426
--------
Total Specialty ....................................... 21,947
--------
Total REITs
(Cost $243,988) ..................................... 334,620
--------
COMMON STOCKS - 7.0%
CONSUMER DISCRETIONARY - 3.7%
CONSUMER DURABLES & APPAREL - 1.8%
228,666 D.R. Horton, Inc. ..................................... 6,974
--------
HOTELS, RESTAURANTS & LEISURE - 1.9%
108,000 Harrah's Entertainment, Inc.** ........................ 7,087
--------
Total Consumer Discretionary .......................... 14,061
--------
FINANCIALS - 2.3%
BANKS - 0.9%
100,000 Countrywide Financial Corporation ..................... 3,619
--------
INSURANCE - 1.4%
163,700 Fidelity National Financial, Inc. ..................... 5,256
--------
Total Financials ...................................... 8,875
--------
INDUSTRIALS - 1.0%
COMMERCIAL SERVICES & SUPPLIES - 1.0%
54,000 St. Joe Company ....................................... 3,758
--------
Total Common Stocks
(Cost $20,433) ....................................... 26,694
--------
See Notes to Financial Statements.
22
Portfolio of Investments (continued)
REIT FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
--------- ------
REPURCHASE AGREEMENT - 5.3%
(Cost $19,961)
$ 19,961 Agreement with Morgan Stanley,
2.850% dated 04/29/2005, to be
repurchased at $19,966,000 on
05/02/2005 (Collateralized by U.S.
Treasury Note, 2.000% due
07/15/2014, market value
$20,611,000) ................................ $ 19,961
--------
SHORT-TERM INVESTMENT - 3.3%
(Cost $12,539)
12,539 Mellon GSL DBT II
Collateral Fund++ ........................... 12,539
--------
TOTAL INVESTMENTS (Cost $296,920*) ....................... 103.7% 393,814
OTHER ASSETS (LIABILITIES) (NET) ......................... (3.7) (14,083)
----- --------
NET ASSETS 100.0% $379,731
===== ========
- ----------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2005, and have an
aggregate market value of $12,272,000, representing 3.2% of the total net
assets of the Fund (Collateral Value $12,539,000).
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities
loaned.
See Notes to Financial Statements.
23
Portfolio of Investments
EQUITY INCOME FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ------------
COMMON STOCKS - 83.5%
CONSUMER DISCRETIONARY - 12.3%
AUTOMOBILES & COMPONENTS - 3.3%
448,000 Autoliv, Inc................................................... $ 19,824
645,000 General Motors Corporation** .................................. 17,208
475,000 Magna International Inc., Class A ............................. 29,037
------------
66,069
------------
CONSUMER DURABLES & APPAREL - 3.1%
720,000 D.R. Horton, Inc.**............................................ 21,960
1,060,000 Mattel, Inc.................................................... 19,133
253,000 NIKE Inc., Class B............................................. 19,433
------------
60,526
------------
HOTELS, RESTAURANTS & LEISURE - 2.5%
260,000 Carnival Corporation**......................................... 12,709
363,000 Harrah's Entertainment, Inc.**................................. 23,820
475,000 McDonald's Corporation......................................... 13,922
------------
50,451
------------
RETAILING - 3.4%
395,000 May Department Stores Company.................................. 13,857
543,000 Neiman Marcus Group Inc., Class A ............................. 53,388
------------
67,245
------------
Total Consumer Discretionary................................... 244,291
------------
CONSUMER STAPLES - 5.6%
FOOD & STAPLES RETAILING - 1.4%
720,000 Wal-Mart de Mexico SA de CV, ADR................................ 26,621
------------
FOOD, BEVERAGE & TOBACCO - 3.1%
405,000 Altria Group, Inc.............................................. 26,321
460,000 ConAgra Foods, Inc............................................. 12,305
396,300 Diageo PLC, Sponsored ADR...................................... 23,679
------------
62,305
------------
HOUSEHOLD & PERSONAL PRODUCTS - 1.1%
395,000 Procter & Gamble Company....................................... 21,389
------------
Total Consumer Staples......................................... 110,315
------------
ENERGY - 8.6%
757,000 Baker Hughes Inc............................................... 33,399
330,000 BP PLC, Sponsored ADR.......................................... 20,097
304,000 ChevronTexaco Corporation...................................... 15,808
203,000 ConocoPhillips Company......................................... 21,284
690,800 GlobalSantaFe Corporation**.................................... 23,211
235,000 Royal Dutch Petroleum Company (F).............................. 13,689
195,000 Schlumberger Ltd............................................... 13,340
441,234 Valero Energy Corporation...................................... 30,238
------------
Total Energy................................................... 171,066
------------
FINANCIALS - 24.8%
BANKS - 7.3%
828,096 Bank of America Corporation.................................... 37,297
1,181,000 North Fork Bancorporation, Inc................................. 33,245
720,400 TCF Financial Corporation...................................... 18,219
560,000 U.S. Bancorp................................................... 15,624
657,000 Wells Fargo & Company.......................................... 39,381
------------
143,766
------------
DIVERSIFIED FINANCIALS - 8.1%
400,000 Allied Capital Corporation**................................... 11,000
875,333 Citigroup Inc.................................................. 41,106
730,998 Countrywide Financial Corporation.............................. 26,455
222,000 Franklin Resources, Inc........................................ 15,247
310,000 Freddie Mac.................................................... 19,071
647,000 JPMorgan Chase & Company....................................... 22,962
310,000 Morgan Stanley................................................. 16,312
155,000 T. Rowe Price Group, Inc....................................... 8,551
------------
160,704
------------
INSURANCE - 9.4%
805,000 ACE Ltd........................................................ 34,583
910,000 AFLAC Inc...................................................... 36,991
595,000 Allstate Corporation........................................... 33,415
550,000 Fidelity National Financial, Inc............................... 17,661
930,000 HCC Insurance Holdings, Inc.................................... 33,080
435,000 XL Capital Ltd., Class A....................................... 30,581
------------
186,311
------------
Total Financials............................................... 490,781
------------
HEALTH CARE - 7.1%
HEALTH CARE EQUIPMENT & SERVICES - 2.6%
275,000 Becton Dickinson & Company..................................... 16,093
655,000 HCA, Inc....................................................... 36,575
------------
52,668
------------
PHARMACEUTICALS & BIOTECHNOLOGY - 4.5%
500,000 Abbott Laboratories............................................ 24,580
460,000 Johnson & Johnson.............................................. 31,570
1,207,500 Pfizer Inc..................................................... 32,808
------------
88,958
------------
Total Health Care.............................................. 141,626
------------
INDUSTRIALS - 7.8%
CAPITAL GOODS - 5.6%
266,000 Boeing Company................................................. 15,832
180,000 General Dynamics Corporation................................... 18,909
560,000 General Electric Company....................................... 20,272
420,000 Northrop Grumman Corporation................................... 23,033
340,000 PACCAR Inc..................................................... 23,086
355,000 Tyco International Ltd.**...................................... 11,115
------------
112,247
------------
See Notes to Financial Statements.
24
Portfolio of Investments (Continued)
EQUITY INCOME FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
------ ------------
COMMON STOCKS - (CONTINUED)
INDUSTRIALS - (CONTINUED)
COMMERCIAL SERVICES & SUPPLIES - 0.8%
555,000 Waste Management Inc........................................... $ 15,812
------------
TRANSPORTATION - 1.4%
800,000 Cathay Pacific Airways Limited ADR............................. 7,619
277,000 United Parcel Service, Inc., Class B........................... 19,753
------------
27,372
------------
Total Industrials.............................................. 155,431
------------
INFORMATION TECHNOLOGY - 6.6%
COMMUNICATIONS EQUIPMENT - 2.2%
850,000 Harris Corporation............................................. 23,970
1,266,000 Nokia Oyj, Sponsored ADR....................................... 20,231
------------
44,201
------------
COMPUTERS & PERIPHERALS - 1.5%
805,000 Hewlett-Packard Company........................................ 16,478
174,000 International Business Machines Corporation.................... 13,290
------------
29,768
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.0%
391,000 Diebold, Inc.**................................................ 18,913
------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT - 1.9%
665,000 Intel Corporation.............................................. 15,641
765,000 Microchip Technology Inc.**.................................... 21,787
------------
37,428
------------
SOFTWARE - 0.0% +++
77 Computer Associates International, Inc......................... 2
------------
Total Information Technology................................... 130,312
------------
MATERIALS - 3.4%
295,000 Alcoa Inc...................................................... 8,561
550,000 Cemex SA de CV, Sponsored ADR.................................. 19,800
365,000 Dow Chemical Company........................................... 16,765
370,000 Monsanto Company............................................... 21,689
------------
Total Materials................................................ 66,815
------------
TELECOMMUNICATION SERVICES - 2.6%
340,000 Mobile TeleSystems OJSC, Sponsored ADR......................... 11,424
456,000 Verizon Communications Inc..................................... 16,325
940,000 Vodafone Group PLC, Sponsored ADR**............................ 24,571
------------
Total Telecommunication Services............................... 52,320
------------
UTILITIES - 4.7%
1,110,000 FPL Group, Inc................................................. 45,310
480,000 Pinnacle West Capital Corporation.............................. 20,112
840,000 Southern Company**............................................. 27,678
------------
Total Utilities................................................ 93,100
------------
Total Common Stocks
(Cost $1,370,678)............................................ 1,656,057
------------
REAL ESTATE INVESTMENT TRUSTS (REITs) - 5.5%
196,000 AMB Property Corporation ...................................... 7,642
92,000 Arden Realty, Inc.............................................. 3,283
77,000 CarrAmerica Realty Corporation................................. 2,544
180,000 Corporate Office Properties Trust.............................. 4,734
135,000 Developers Diversified Realty Corporation...................... 5,729
81,000 Duke Realty Corporation........................................ 2,479
270,000 Equity Office Properties Trust................................. 8,497
228,000 Equity Residential............................................. 7,832
184,000 General Growth Properties, Inc................................. 7,196
276,000 Health Care Property Investors, Inc............................ 7,077
140,000 Hospitality Properties Trust................................... 5,849
160,000 Host Marriott Corporation...................................... 2,691
80,000 Kimco Realty Corporation....................................... 4,431
90,000 Macerich Company............................................... 5,427
107,000 Mills Corporation.............................................. 6,114
193,900 Plum Creek Timber Company, Inc................................. 6,697
110,500 ProLogis....................................................... 4,375
103,000 Shurgard Storage Centers, Inc., Class A........................ 4,309
157,000 Simon Property Group, Inc...................................... 10,373
73,900 United Dominion Realty Trust, Inc.............................. 1,637
------------
Total REITs
(Cost $74,184)............................................... 108,916
------------
PRINCIPAL
AMOUNT
(000s)
- ---------
CONVERTIBLE SECURITIES - 2.0%
CONVERTIBLE BONDS AND NOTES - 2.0%
$ 12,550 Continental Airlines, Inc., Conv. Sr. Note,
5.000% due 06/15/2023........................................ 10,495
9,000 CV Therapeutics, Inc., Conv. Sr. Sub. Deb.,
2.000% due 05/16/2023........................................ 7,369
10,500 deCODE genetics, Inc., Conv. Sr. Note,
3.500% due 04/15/2011........................................ 8,387
5,500 RadiSys Corporation, Conv. Sub. Note,
5.500% due 08/15/2007........................................ 5,383
8,000 TriQuint Semiconductor, Inc., Conv. Sub. Note,
4.000% due 03/01/2007........................................ 7,670
------------
Total Convertible Securities
(Cost $39,716)............................................... 39,304
------------
See Notes to Financial Statements.
25
Portfolio of Investments (Continued)
EQUITY INCOME FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ------------
FIXED INCOME SECURITIES - 3.3%
U.S. TREASURY NOTES - 2.3%
$ 30,000 3.000% due 12/31/2006.......................................... $ 29,720
15,000 4.250% due 11/15/2014.......................................... 15,054
------------
Total U.S. Treasury Notes
(Cost $44,941)............................................... 44,774
------------
CORPORATE BONDS AND NOTES - 1.0%
1,500 Aetna Inc., Company Guarantee,
7.625% due 08/15/2026........................................ 1,862
1,250 American Home Products Corporation, Deb.,
7.250% due 03/01/2023........................................ 1,481
4,000 ERAC USA Finance Company, Note,
7.350% due 06/15/2008++...................................... 4,342
1,000 Medpartners Inc., Sr. Note,
7.375% due 10/01/2006........................................ 1,039
500 Merrill Lynch & Company, Inc., Note,
6.375% due 10/15/2008........................................ 533
4,000 TELUS Corporation, Note,
8.000% due 06/01/2011........................................ 4,626
2,000 Texas-New Mexico Power Company, Sr. Note,
6.250% due 01/15/2009........................................ 2,103
2,000 Time Warner Inc., Deb.,
9.150% due 02/01/2023........................................ 2,697
1,000 Westinghouse Electric Corporation, Deb.,
7.875% due 09/01/2023........................................ 1,197
------------
Total Corporate Bonds and Notes
(Cost $17,417)............................................... 19,880
------------
COLLATERALIZED MORTGAGE OBLIGATION (CMO) - 0.0%+++
(Cost $603)
602 Reilly Mortgage FHA, Series 1982,
(Partial default),
7.430% due 08/01/2022........................................ 602++
------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 0.0% +++
FEDERAL HOME LOAN MORTGAGE CORPORATION
(FHLMC) - 0.0% +++
293 6.500% due 09/01/2030.......................................... 305
172 7.000% due 09/01/2030.......................................... 182
------------
Total U.S. Government Agency
Mortgage-Backed Securities
(Cost $453).................................................. 487
------------
Total Fixed Income Securities
(Cost $63,414)............................................... 65,743
------------
SHARES
- ---------
WARRANTS - 0.0% +++
(Cost $0)
4,500 V2 Music Holdings PLC,
Expires 05/07/2008+,++....................................... 0*** ++
------------
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ------------
REPURCHASE AGREEMENT - 5.3%
(Cost $105,383)
$ 105,383 Agreement with Morgan Stanley,
2.850% dated 04/29/2005, to be
repurchased at $105,408,000 on
05/02/2005 (Collateralized by
U.S. Treasury Note, 2.000%
due 07/15/2014, market value
$108,813,000)................................................ $ 105,383
------------
SHORT-TERM INVESTMENT - 4.1%
(Cost $81,609)
81,609 Mellon GSL DBT II
Collateral Fund++++.......................................... 81,609
------------
TOTAL INVESTMENTS (Cost $1,734,984*)................................ 103.7% 2,057,012
OTHER ASSETS (LIABILITIES) (NET).................................... (3.7) (74,130)
----- ------------
NET ASSETS.......................................................... 100.0% $ 1,982,882
===== ============
- ----------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2005, and have an
aggregate market value of $79,087,000, representing 4.0% of the total net
assets of the Fund (Collateral Value $81,609,000).
*** Value of security is less than $500.
+ Non-income producing security.
++ Security acquired in a transaction exempt from registration under Rule 144A
of the Securities Act of 1933, as amended.
+++ Amount represents less than 0.1% of the total net assets of the Fund.
++++ Represents investment purchased with cash collateral for securities loaned.
++ Represents fair value as determined in good faith under the direction of
the Board of Trustees.
GLOSSARY OF TERMS
ADR -- American Depositary Receipt
(F) -- Foreign Shares
FHA -- Federal Housing Authority
See Notes to Financial Statements.
26
Portfolio of Investments
GROWTH & INCOME FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
------ ------------
COMMON STOCKS - 96.1%
CONSUMER DISCRETIONARY - 11.2%
CONSUMER DURABLES & APPAREL - 1.3%
1,719,000 Mattel, Inc.................................................... $ 31,028
------------
HOTELS, RESTAURANTS & LEISURE - 3.5%
1,699,000 Carnival Corporation**......................................... 83,047
------------
MEDIA - 5.2%
954,999 Comcast Corporation, Class A+.................................. 30,665
846,000 Comcast Corporation, Special Class A+**........................ 26,844
2,808,300 Liberty Media Corporation, Class A+............................ 28,195
1,134,000 Viacom Inc., Class B........................................... 39,259
------------
124,963
------------
RETAILING - 1.2%
967,000 Gap, Inc....................................................... 20,646
174,000 Kohl's Corporation+............................................ 8,282
------------
28,928
------------
Total Consumer Discretionary................................... 267,966
------------
CONSUMER STAPLES - 10.2%
FOOD & STAPLES RETAILING - 3.0%
794,000 Costco Wholesale Corporation................................... 32,220
2,545,000 Kroger Company+................................................ 40,135
------------
72,355
------------
FOOD, BEVERAGE & TOBACCO - 2.1%
925,000 PepsiCo Inc.................................................... 51,467
------------
HOUSEHOLD & PERSONAL PRODUCTS - 5.1%
1,578,000 Avon Products, Inc............................................. 63,246
473,000 Kimberly-Clark Corporation..................................... 29,539
539,000 Procter & Gamble Company**..................................... 29,187
------------
121,972
------------
Total Consumer Staples......................................... 245,794
------------
ENERGY - 8.1%
770,000 BP PLC, Sponsored ADR.......................................... 46,893
939,000 ExxonMobil Corporation......................................... 53,551
168,000 GlobalSantaFe Corporation...................................... 5,645
648,000 Royal Dutch Petroleum Company (F)**............................ 37,746
388,000 Schlumberger Ltd............................................... 26,543
460,000 Unocal Corporation............................................. 25,093
------------
Total Energy................................................... 195,471
------------
FINANCIALS - 22.6%
BANKS - 8.8%
2,062,834 Bank of America Corporation.................................... 92,910
865,000 North Fork Bancorporation, Inc................................. 24,350
842,000 Wachovia Corporation........................................... 43,094
860,000 Wells Fargo & Company.......................................... 51,548
------------
211,902
------------
DIVERSIFIED FINANCIALS - 7.4%
1,251,000 Citigroup Inc.................................................. 58,747
974,000 Freddie Mac.................................................... 59,920
1,633,000 JPMorgan Chase & Company....................................... 57,955
------------
176,622
------------
INSURANCE - 6.4%
1,086,800 ACE Ltd........................................................ 46,689
1,266,000 Allstate Corporation........................................... 71,099
732,000 American International Group Inc............................... 37,222
------------
155,010
------------
Total Financials............................................... 543,534
------------
HEALTH CARE - 12.0%
HEALTH CARE EQUIPMENT & SERVICES - 4.6%
704,000 Baxter International Inc....................................... 26,118
701,000 Cardinal Health Inc............................................ 38,955
869,000 Medtronic, Inc................................................. 45,796
------------
110,869
------------
PHARMACEUTICALS & BIOTECHNOLOGY - 7.4%
1,020,000 Bristol-Myers Squibb Company................................... 26,520
625,000 Johnson & Johnson.............................................. 42,894
525,000 Merck & Company, Inc........................................... 17,797
1,400,000 Pfizer Inc..................................................... 38,038
1,623,000 Teva Pharmaceutical Industries Ltd., Sponsored ADR**........... 50,703
------------
175,952
------------
Total Health Care.............................................. 286,821
------------
INDUSTRIALS - 12.6%
CAPITAL GOODS - 10.8%
857,000 Boeing Company................................................. 51,009
1,441,000 General Electric Company....................................... 52,164
1,624,000 Honeywell International Inc.................................... 58,074
523,000 Lockheed Martin Corporation.................................... 31,877
2,060,000 Tyco International Ltd......................................... 64,499
------------
257,623
------------
COMMERCIAL SERVICES & SUPPLIES - 1.6%
540,300 Apollo Group, Inc., Class A+**................................. 38,966
------------
TRANSPORTATION - 0.2%
64,000 United Parcel Service, Inc., Class B........................... 4,564
------------
Total Industrials.............................................. 301,153
------------
INFORMATION TECHNOLOGY - 12.1%
COMMUNICATIONS EQUIPMENT - 1.6%
2,478,000 Motorola, Inc.................................................. 38,013
------------
See Notes to Financial Statements.
27
Portfolio of Investments (Continued)
GROWTH & INCOME FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
------ ------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
COMPUTERS & PERIPHERALS - 3.0%
1,600,000 Hewlett-Packard Company........................................ $ 32,752
507,000 International Business Machines Corporation.................... 38,725
------------
71,477
------------
IT SERVICES - 2.0%
1,250,000 First Data Corporation......................................... 47,537
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.8%
274,500 Freescale Semiconductor Inc., Class B+......................... 5,177
1,642,000 Intel Corporation.............................................. 38,620
------------
43,797
------------
SOFTWARE - 3.7%
1,510,045 Computer Associates International, Inc......................... 40,620
1,960,000 Microsoft Corporation.......................................... 49,588
------------
90,208
------------
Total Information Technology................................... 291,032
------------
MATERIALS - 1.2%
956,000 Alcoa Inc...................................................... 27,743
------------
TELECOMMUNICATION SERVICES - 1.2%
1,173,000 SBC Communications Inc......................................... 27,917
------------
UTILITIES - 4.9%
1,111,000 FPL Group, Inc................................................. 45,351
851,000 NiSource Inc.**................................................ 19,778
679,000 Pinnacle West Capital Corporation.............................. 28,450
739,000 Southern Company**............................................. 24,350
------------
Total Utilities................................................ 117,929
------------
Total Common Stocks
(Cost $1,905,532)............................................ 2,305,360
------------
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ------------
REPURCHASE AGREEMENT - 3.9%
(Cost $94,658)
$ 94,658 Agreement with Morgan Stanley, 2.850% dated 04/29/2005, to be
repurchased at $94,680,000 on 05/02/2005 (Collateralized by
U.S. Treasury Note, 2.000% due 07/15/2014, market value
$97,739,000)................................................. $ 94,658
------------
SHORT-TERM INVESTMENT - 4.8%
(Cost $115,720)
115,720 Mellon GSL DBT II
Collateral Fund++............................................ 115,720
------------
TOTAL INVESTMENTS (Cost $2,115,910*)................................ 104.8% 2,515,738
OTHER ASSETS (LIABILITIES) (NET).................................... (4.8) (115,653)
----- ------------
NET ASSETS.......................................................... 100.0% $ 2,400,085
===== ============
- ----------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2005, and have an
aggregate market value of $112,780,000, representing 4.7% of the total net
assets of the Fund (Collateral Value $115,720,000).
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities loaned.
GLOSSARY OF TERMS
ADR -- American Depositary Receipt
(F) -- Foreign Shares
See Notes to Financial Statements.
28
Portfolio of Investments
WEST COAST EQUITY FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ---------
COMMON STOCKS - 93.3%
CONSUMER DISCRETIONARY - 14.4%
AUTOMOBILES & COMPONENTS - 1.4%
761,700 Monaco Coach Corporation..................................... $ 10,801
60,300 Superior Industries International, Inc.**.................... 1,226
109,400 Toyota Motor Corporation, Sponsored ADR...................... 7,954
---------
19,981
---------
CONSUMER DURABLES & APPAREL - 3.2%
161,100 Columbia Sportswear Company+................................. 6,927
228,200 KB Home**.................................................... 13,008
414,300 Mattel, Inc. ................................................ 7,478
207,600 NIKE Inc., Class B........................................... 15,946
---------
43,359
---------
HOTELS, RESTAURANTS & LEISURE - 3.6%
893,400 Hilton Hotels Corporation.................................... 19,503
431,100 Starbucks Corporation+....................................... 21,348
1,267,185 WestCoast Hospitality Corporation+........................... 8,744
---------
49,595
---------
MEDIA - 4.9%
290,700 Getty Images, Inc.+**........................................ 20,799
233,800 Knight-Ridder, Inc.**........................................ 15,127
51,000 McClatchy Company, Class A................................... 3,606
574,900 Univision Communications Inc., Class A+**.................... 15,114
486,600 Walt Disney Company.......................................... 12,846
---------
67,492
---------
RETAILING - 1.3%
65,300 Blue Nile, Inc.+............................................. 1,644
275,525 Building Materials Holding Corporation....................... 15,137
112,000 Restoration Hardware, Inc.+.................................. 695
---------
17,476
---------
Total Consumer Discretionary................................. 197,903
---------
CONSUMER STAPLES - 3.8%
FOOD & STAPLES RETAILING - 2.0%
522,640 Costco Wholesale Corporation................................. 21,209
369,200 Kroger Company+.............................................. 5,822
---------
27,031
---------
HOUSEHOLD & PERSONAL PRODUCTS - 1.8%
248,930 Clorox Company............................................... 15,757
237,300 Estee Lauder Companies Inc., Class A......................... 9,115
---------
24,872
---------
Total Consumer Staples....................................... 51,903
---------
ENERGY - 7.0%
325,700 Apache Corporation........................................... 18,334
20,000 CARBO Ceramics Inc. ......................................... 1,328
664,000 ChevronTexaco Corporation.................................... 34,528
36,300 ExxonMobil Corporation....................................... 2,070
432,000 Nabors Industries Ltd.+** ................................... 23,272
222,100 Occidental Petroleum Corporation............................. 15,325
13,500 Unocal Corporation........................................... 736
---------
Total Energy 95,593
---------
FINANCIALS - 18.1%
BANKS - 12.2%
542,700 Bank of America Corporation.................................. 24,443
343,200 Banner Corporation........................................... 8,563
153,700 City National Corporation.................................... 10,836
416,500 East West Bancorp, Inc....................................... 13,378
303,600 Greater Bay Bancorp**........................................ 7,638
51,100 KeyCorp...................................................... 1,694
86,533 Pacific Capital Bancorp...................................... 2,495
938,200 U.S. Bancorp................................................. 26,176
143,300 UCBH Holdings, Inc........................................... 2,254
39,300 United PanAm Financial Corporation+.......................... 869
938,755 Washington Federal, Inc. .................................... 20,925
806,316 Wells Fargo & Company........................................ 48,331
---------
167,602
---------
DIVERSIFIED FINANCIALS - 4.1%
1,338,000 Charles Schwab Corporation................................... 13,848
456,300 Citigroup Inc. .............................................. 21,428
74,300 Countrywide Financial Corporation............................ 2,689
253,400 Franklin Resources, Inc. .................................... 17,404
45,532 Piper Jaffray Companies, Inc.+............................... 1,259
---------
56,628
---------
INSURANCE - 1.8%
81,400 RenaissanceRe Holdings Ltd. ................................. 3,644
269,715 StanCorp Financial Group, Inc. .............................. 20,639
---------
24,283
---------
Total Financials............................................. 248,513
---------
HEALTH CARE - 14.9%
HEALTH CARE EQUIPMENT & SERVICES - 6.0%
77,000 Affymetrix, Inc.+**.......................................... 3,550
219,700 Applera Corporation-Applied Biosystems Group................. 4,658
179,300 Caremark Rx, Inc.+........................................... 7,181
90,060 Health Net, Inc.+............................................ 3,065
1,336,100 OraSure Technologies, Inc.+.................................. 10,635
138,400 ResMed Inc.+................................................. 8,595
686,663 SonoSite, Inc.+.............................................. 19,985
339,700 Varian Medical Systems, Inc.+ ............................... 11,462
236,300 VCA Antech, Inc.+............................................ 5,501
100,900 Zimmer Holdings, Inc.+....................................... 8,215
---------
82,847
---------
PHARMACEUTICALS & BIOTECHNOLOGY - 8.9%
201,550 Abbott Laboratories.......................................... 9,908
257,000 Allergan, Inc. .............................................. 18,090
See Notes to Financial Statements.
29
Portfolio of Investments (continued)
WEST COAST EQUITY FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ---------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
PHARMACEUTICALS & BIOTECHNOLOGY - (CONTINUED)
321,739 Amgen, Inc.+................................................. $ 18,729
117,000 Amylin Pharmaceuticals, Inc.+................................ 1,989
1,055,000 Corixa Corporation+.......................................... 3,260
56,800 CV Therapeutics, Inc.+....................................... 1,126
428,300 Dendreon Corporation+**...................................... 1,979
432,675 EDEN Bioscience Corporation+................................. 281
218,800 Genentech, Inc.+............................................. 15,522
272,920 ICOS Corporation+**.......................................... 6,157
122,100 Johnson & Johnson............................................ 8,380
39,700 Martek Biosciences Corporation+.............................. 1,519
98,000 Neurocrine Biosciences, Inc.+................................ 3,426
699,500 Pfizer Inc. ................................................. 19,005
409,000 Watson Pharmaceuticals, Inc.+................................ 12,270
---------
121,641
---------
Total Health Care............................................ 204,488
---------
INDUSTRIALS - 15.0%
CAPITAL GOODS - 11.7%
549,133 Boeing Company............................................... 32,684
222,700 Cascade Corporation.......................................... 7,015
276,700 Dionex Corporation+.......................................... 11,884
430,330 Electro Scientific Industries, Inc.+......................... 7,113
554,800 Greenbrier Companies, Inc. .................................. 16,200
194,700 Jacobs Engineering Group Inc.+ .............................. 9,484
299,100 Northrop Grumman Corporation................................. 16,403
516,787 PACCAR Inc. ................................................. 35,090
174,850 Precision Castparts Corporation.............................. 12,880
411,900 Simpson Manufacturing Company, Inc. ......................... 11,121
---------
159,874
---------
COMMERCIAL SERVICES & SUPPLIES - 1.1%
36,700 Avery Dennison Corporation................................... 1,922
74,500 Copart, Inc.+................................................ 1,615
487,600 Robert Half International Inc.**............................. 12,102
---------
15,639
---------
TRANSPORTATION - 2.2%
369,110 Alaska Air Group, Inc.+**.................................... 9,844
413,120 Expeditors International of Washington, Inc.**............... 20,288
---------
30,132
---------
Total Industrials............................................ 205,645
---------
INFORMATION TECHNOLOGY - 15.7%
COMMUNICATIONS EQUIPMENT - 1.2%
910,900 Cisco Systems, Inc.+......................................... 15,740
34,500 Polycom, Inc.+............................................... 527
---------
16,267
---------
COMPUTERS & PERIPHERALS - 1.6%
1,260,000 Advanced Digital Information Corporation+.................... 8,707
615,000 Hewlett-Packard Company...................................... 12,589
54,500 InFocus Corporation+......................................... 196
---------
21,492
---------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.0%
165,735 Microvision, Inc.+**......................................... 762
513,000 Tektronix, Inc. ............................................. 11,112
76,000 Trimble Navigation Ltd.+..................................... 2,616
---------
14,490
---------
INTERNET SOFTWARE & SERVICES - 0.4%
2,482,761 Art Technology Group, Inc.+.................................. 2,359
951,400 WatchGuard Technologies, Inc.+............................... 3,082
---------
5,441
---------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 4.0%
309,000 Applied Materials, Inc. ..................................... 4,595
361,900 Credence Systems Corporation+................................ 2,276
324,825 FEI Company+................................................. 5,857
825,000 Intel Corporation............................................ 19,404
93,700 KLA-Tencor Corporation**..................................... 3,656
823,480 Lattice Semiconductor Corporation+........................... 3,755
532,900 LSI Logic Corporation+....................................... 2,856
107,000 Novellus Systems, Inc.+...................................... 2,507
1,046,600 Pixelworks, Inc.+**.......................................... 8,059
468,740 TriQuint Semiconductor, Inc.+................................ 1,388
---------
54,353
---------
SOFTWARE - 7.5%
554,600 Actuate Corporation+......................................... 1,054
316,000 Adobe Systems Inc.**......................................... 18,792
85,700 Electronic Arts Inc.+........................................ 4,575
379,650 Fair Isaac Corporation**..................................... 12,483
1,649,578 Microsoft Corporation........................................ 41,734
454,700 Quest Software, Inc.+**...................................... 5,393
454,708 RadiSys Corporation+......................................... 6,366
479,000 Siebel Systems, Inc.+........................................ 4,311
249,600 SupportSoft, Inc.+........................................... 1,186
250,500 Sybase, Inc.+................................................ 4,742
90,000 VERITAS Software Corporation+................................ 1,853
---------
102,489
---------
Total Information Technology................................. 214,532
---------
MATERIALS - 3.2%
465,330 Oregon Steel Mills, Inc.+.................................... 7,738
595,040 Schnitzer Steel Industries, Inc., Class A.................... 14,656
317,400 Weyerhaeuser Company......................................... 21,777
---------
Total Materials.............................................. 44,171
---------
See Notes to Financial Statements.
30
Portfolio of Investments (continued)
WEST COAST EQUITY FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ------------
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - 1.2%
694,100 Nextel Partners, Inc., Class A+**............................ $ 16,325
------------
Total Common Stocks
(Cost $990,078)............................................. 1,279,073
------------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 2.8%
358,700 AMB Property Corporation..................................... 13,986
170,100 Health Care Property Investors, Inc. ........................ 4,361
527,800 Plum Creek Timber Company, Inc. ............................. 18,230
35,400 Shurgard Storage Centers, Inc., Class A...................... 1,481
------------
Total REITs
(Cost $31,574).............................................. 38,058
------------
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ------------
REPURCHASE AGREEMENT - 3.9%
(Cost $53,501)
$ 53,501 Agreement with Morgan Stanley, 2.850% dated 04/29/2005, to
be repurchased at $53,514,000 on 05/02/2005 (Collateralized
by U.S. Treasury Note, 2.000% due 07/15/2014, market value
$55,242,000)................................................ $ 53,501
------------
SHORT-TERM INVESTMENT - 8.6%
(Cost $117,560)
117,560 Mellon GSL DBT II Collateral Fund++.......................... 117,560
------------
TOTAL INVESTMENTS (Cost $1,192,713*)..................................... 108.6% 1,488,192
OTHER ASSETS (LIABILITIES) (NET)......................................... (8.6) (118,283)
----- ------------
NET ASSETS............................................................... 100.0% $ 1,369,909
===== ============
- ----------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2005, and have an
aggregate market value of $115,094,000, representing 8.4% of the total net
assets of the Fund (Collateral Value $117,560,000).
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities loaned.
GLOSSARY OF TERMS
ADR -- American Depositary Receipt
See Notes to Financial Statements.
31
Portfolio of Investments
MID CAP STOCK FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ----------
COMMON STOCKS - 90.3%
CONSUMER DISCRETIONARY - 14.0%
AUTOMOBILES & COMPONENTS - 2.3%
270,000 Magna International Inc., Class A............................ $ 16,505
83,300 Superior Industries International, Inc.**.................... 1,694
----------
18,199
----------
CONSUMER DURABLES & APPAREL - 3.7%
455,100 Jones Apparel Group, Inc. ................................... 13,858
854,700 Mattel, Inc. ................................................ 15,427
----------
29,285
----------
HOTELS, RESTAURANTS & LEISURE - 2.4%
138,000 Papa John's International, Inc.+**........................... 4,731
307,400 Yum! Brands, Inc. ........................................... 14,435
----------
19,166
----------
RETAILING - 5.6%
210,000 Neiman Marcus Group Inc., Class A............................ 20,647
517,700 Tiffany & Company**.......................................... 15,609
196,500 Weight Watchers International, Inc.+**....................... 8,204
----------
44,460
----------
Total Consumer Discretionary................................. 111,110
----------
CONSUMER STAPLES - 2.8%
FOOD, BEVERAGE & TOBACCO - 0.8%
116,550 Dean Foods Company+.......................................... 4,005
43,100 Hershey Foods Corporation.................................... 2,754
----------
6,759
----------
HOUSEHOLD & PERSONAL CARE PRODUCTS - 2.0%
403,200 Estee Lauder Companies Inc., Class A......................... 15,487
----------
Total Consumer Staples....................................... 22,246
----------
ENERGY - 8.7%
92,400 Baker Hughes Inc. ........................................... 4,077
138,000 Cimarex Energy Company+**.................................... 4,899
334,600 Nabors Industries Ltd.+...................................... 18,025
272,300 Noble Energy, Inc.**......................................... 17,460
211,000 Tesoro Corporation+.......................................... 8,005
439,100 Tidewater Inc.**............................................. 15,136
19,000 Unocal Corporation........................................... 1,036
----------
Total Energy................................................. 68,638
----------
FINANCIALS - 17.5%
BANKS - 6.4%
712,711 North Fork Bancorporation, Inc. ............................. 20,063
633,000 TCF Financial Corporation.................................... 16,009
673,850 Washington Federal, Inc. .................................... 15,020
----------
51,092
----------
DIVERSIFIED FINANCIALS - 3.6%
407,300 A.G. Edwards, Inc. .......................................... 16,174
183,400 Ambac Financial Group, Inc. ................................. 12,260
----------
28,434
----------
INSURANCE - 7.5%
551,020 Fidelity National Financial, Inc.**.......................... 17,693
584,800 HCC Insurance Holdings, Inc. ................................ 20,801
216,400 MGIC Investment Corporation.................................. 12,768
222,300 PMI Group, Inc.**............................................ 7,816
----------
59,078
----------
Total Financials............................................. 138,604
----------
HEALTH CARE - 11.1%
HEALTH CARE EQUIPMENT & SERVICES - 9.6%
84,300 AmerisourceBergen Corporation**.............................. 5,166
392,800 Covance Inc.+................................................ 17,928
181,900 Express Scripts, Inc., Class A+.............................. 16,306
630,582 IMS Health Inc. ............................................. 15,121
371,100 Universal Health Services, Inc., Class B..................... 21,056
----------
75,577
----------
PHARMACEUTICALS & BIOTECHNOLOGY - 1.5%
309,000 Andrx Corporation+**......................................... 6,152
364,425 Mylan Laboratories Inc.**.................................... 6,013
----------
12,165
----------
Total Health Care............................................ 87,742
----------
INDUSTRIALS - 14.4%
CAPITAL GOODS - 6.0%
573,900 Federal Signal Corporation................................... 8,052
514,300 Lincoln Electric Holdings, Inc. ............................. 15,712
171,000 PACCAR Inc. ................................................. 11,611
231,200 Teleflex Inc. ............................................... 12,362
----------
47,737
----------
COMMERCIAL SERVICES & SUPPLIES - 5.1%
330,600 Allied Waste Industries, Inc.+............................... 2,641
402,300 HNI Corporation.............................................. 20,381
487,700 Republic Services, Inc. ..................................... 16,874
----------
39,896
----------
TRANSPORTATION - 3.3%
301,200 Alaska Air Group, Inc.+...................................... 8,033
898,200 AMR Corporation+**........................................... 9,404
754,400 Continental Airlines, Inc., Class B+**....................... 8,932
----------
26,369
----------
Total Industrials............................................ 114,002
----------
See Notes to Financial Statements.
32
Portfolio of Investments (continued)
MID CAP STOCK FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000S)
- ------ ------------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - 10.7%
COMPUTERS & PERIPHERALS - 1.1%
504,500 Electronics for Imaging, Inc.+............................... $ 8,284
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.0%
301,900 Arrow Electronics, Inc.+..................................... 7,348
177,700 Diebold, Inc.**.............................................. 8,596
------------
15,944
------------
IT SERVICES - 1.5%
536,500 Acxiom Corporation.......................................... 10,193
129,300 Convergys Corporation+**.................................... 1,676
------------
11,869
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.5%
686,600 Microchip Technology Inc. .................................. 19,554
------------
SOFTWARE - 3.6%
40,000 Adobe Systems Inc. ......................................... 2,379
778,600 BMC Software Inc.+.......................................... 12,613
1,218,500 Siebel Systems, Inc.+....................................... 10,966
169,800 Synopsys, Inc.+............................................. 2,792
------------
28,750
------------
Total Information Technology................................ 84,401
------------
MATERIALS - 4.8%
540,200 Cabot Corporation........................................... 16,503
148,100 Lubrizol Corporation........................................ 5,742
383,400 Valspar Corporation......................................... 15,846
------------
Total Materials............................................. 38,091
------------
TELECOMMUNICATION SERVICES - 0.5%
95,200 United States Cellular Corporation+.......................... 4,398
------------
UTILITIES - 5.8%
388,800 FPL Group, Inc. ............................................ 15,871
645,200 NiSource Inc. .............................................. 14,994
368,400 Pinnacle West Capital Corporation .......................... 15,436
------------
Total Utilities............................................. 46,301
------------
Total Common Stocks
(Cost $596,844)........................................... 715,533
------------
REAL ESTATE INVESTMENT TRUST (REIT) - 1.9%
(Cost $10,827)
394,600 General Growth Properties, Inc. ............................ 15,433
------------
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ------------
REPURCHASE AGREEMENT - 8.1%
(Cost $63,784)
$ 63,784 Agreement with Morgan Stanley, 2.850% dated 04/29/2005, to
be repurchased at $63,799,000 on 05/02/2005 (Collateralized
by U.S. Treasury Note, 2.000% due 07/15/2014, market value
$61,724,000)........................................................ $ 63,784
-----------
SHORT-TERM INVESTMENT - 7.5%
(Cost $59,373)
59,373 Mellon GSL DBT II Collateral Fund++................................... 59,373
-----------
TOTAL INVESTMENTS (Cost $730,828*)................................................ 107.8% 854,123
OTHER ASSETS (LIABILITIES) (NET).................................................. (7.8) (62,134)
----- -----------
NET ASSETS ....................................................................... 100.0% $ 791,989
===== ===========
- ----------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2005, and have an
aggregate market value of $57,011,000, representing 7.2% of the total net
assets of the Fund (Collateral Value $59,373,000).
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities loaned.
See Notes to Financial Statements.
33
Portfolio of Investments
GROWTH FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ------
COMMON STOCKS - 98.2%
CONSUMER DISCRETIONARY - 20.1%
AUTOMOBILES & COMPONENTS - 0.4%
153,895 Harley-Davidson, Inc. .................................. $ 7,236
------------
CONSUMER DURABLES & APPAREL - 0.7%
140,660 NIKE Inc., Class B ..................................... 10,804
------------
HOTELS, RESTAURANTS & LEISURE - 2.7%
117,900 Carnival Corporation** ................................. 5,763
237,505 Hilton Hotels Corporation .............................. 5,185
339,945 McDonald's Corporation ................................. 9,964
334,740 Royal Caribbean Cruises Ltd.** ......................... 14,066
173,940 Starbucks Corporation+ ................................. 8,613
------------
43,591
------------
MEDIA - 6.8%
69,500 Clear Channel Communications, Inc. ..................... 2,220
589,300 Comcast Corporation, Special Class A+** ................ 18,699
361,866 Liberty Media Corporation, Class A+ .................... 3,633
386,000 News Corporation, Class B** ............................ 6,145
2,543,230 Time Warner Inc.+ ...................................... 42,752
233,745 Univision Communications Inc., Class A+** .............. 6,145
323,000 Viacom Inc., Class B ................................... 11,182
764,600 Walt Disney Company .................................... 20,185
------------
110,961
------------
RETAILING - 9.5%
839,500 Amazon.com Inc.+ ....................................... 27,166
211,000 Bed Bath & Beyond Inc.+ ................................ 7,851
276,335 Best Buy Company, Inc.** ............................... 13,911
532,960 eBay Inc.+ ............................................. 16,911
61,700 Federated Department Stores, Inc. ...................... 3,548
39,100 Gap, Inc. .............................................. 835
1,226,440 Home Depot, Inc. ....................................... 43,379
743,500 IAC/InterActiveCorp+ ................................... 16,164
77,600 J.C. Penney Company, Inc. (Holding Company) ............ 3,679
50,700 Lowe's Companies, Inc. ................................. 2,642
464,565 Staples, Inc. .......................................... 8,859
145,295 Target Corporation ..................................... 6,743
78,400 Williams-Sonoma, Inc.+ ................................. 2,626
------------
154,314
------------
Total Consumer Discretionary ........................... 326,906
------------
CONSUMER STAPLES - 7.4%
FOOD & STAPLES RETAILING - 0.8%
66,000 Costco Wholesale Corporation ........................... 2,679
217,800 Wal-Mart Stores Inc. ................................... 10,267
------------
12,946
------------
FOOD, BEVERAGE & TOBACCO - 3.4%
29,800 Anheuser-Busch Companies, Inc. ......................... 1,397
429,000 Coca-Cola Company ...................................... 18,636
372,710 PepsiCo Inc. ........................................... 20,737
212,500 Wm. Wrigley Jr. Company ................................ 14,690
------------
55,460
------------
HOUSEHOLD & PERSONAL PRODUCTS - 3.2%
67,100 Estee Lauder Companies Inc., Class A ................... 2,577
477,700 Gillette Company ....................................... 24,669
460,855 Procter & Gamble Company** ............................. 24,955
------------
52,201
------------
Total Consumer Staples ................................. 120,607
------------
ENERGY - 3.2%
7,200 Amerada Hess Corporation** ............................. 674
13,700 Apache Corporation** ................................... 771
27,400 Devon Energy Corporation ............................... 1,238
466,490 ExxonMobil Corporation ................................. 26,604
79,800 GlobalSantaFe Corporation .............................. 2,681
176,740 Halliburton Company .................................... 7,351
76,060 Kinder Morgan Management LLC+ .......................... 3,345
22,500 Pride International, Inc.+ ............................. 502
108,800 Schlumberger Ltd.** .................................... 7,443
18,200 Smith International, Inc. .............................. 1,059
28,000 Transocean Inc.+ ....................................... 1,298
------------
Total Energy ........................................... 52,966
------------
FINANCIALS - 9.5%
BANKS - 0.2%
74,400 Bank of America Corporation ............................ 3,351
------------
DIVERSIFIED FINANCIALS - 6.4%
479,135 American Express Company ............................... 25,250
323,400 Citigroup Inc. ......................................... 15,187
187,545 Countrywide Financial Corporation ...................... 6,787
45,900 Goldman Sachs Group, Inc. .............................. 4,902
112,640 JPMorgan Chase & Company ............................... 3,998
18,000 Lehman Brothers Holdings Inc. .......................... 1,651
34,300 MBNA Corporation ....................................... 677
371,570 Merrill Lynch & Company, Inc. .......................... 20,039
502,600 Morgan Stanley ......................................... 26,447
------------
104,938
------------
INSURANCE - 2.9%
410,895 American International Group Inc. ...................... 20,894
260 Berkshire Hathaway, Inc., Class A+ ..................... 21,931
70,600 Prudential Financial, Inc. ............................. 4,035
------------
46,860
------------
Total Financials ....................................... 155,149
------------
HEALTH CARE - 20.7%
HEALTH CARE EQUIPMENT & SERVICES - 6.4%
33,800 Aetna Inc. ............................................. 2,480
38,300 Applera Corporation-Applied Biosystems Group ........... 812
241,340 Biomet, Inc. ........................................... 9,337
248,025 Caremark Rx, Inc.+ ..................................... 9,933
22,500 Laboratory Corporation of America Holdings+ ............ 1,114
18,400 Medco Health Solutions, Inc.+ .......................... 938
627,080 Medtronic, Inc. ........................................ 33,047
See Notes to Financial Statements.
34
Portfolio of Investments (continued)
GROWTH FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
HEALTH CARE EQUIPMENT & SERVICES - (CONTINUED)
85,700 Millipore Corporation+ ................................. $ 4,133
6,100 Quest Diagnostics Inc.** ............................... 645
112,900 Stryker Corporation .................................... 5,481
306,255 UnitedHealth Group Inc. ................................ 28,944
170,885 Varian Medical Systems, Inc.+ .......................... 5,766
37,400 Waters Corporation+ .................................... 1,482
------------
104,112
------------
PHARMACEUTICALS & BIOTECHNOLOGY - 14.3%
74,400 Abbott Laboratories .................................... 3,657
686,510 Amgen, Inc.+ ........................................... 39,962
369,440 Biogen Idec Inc.+ ...................................... 13,389
449,975 Eli Lilly & Company .................................... 26,310
679,385 Genentech, Inc.+** ..................................... 48,196
123,800 Gilead Sciences, Inc.+ ................................. 4,593
437,640 Johnson & Johnson ...................................... 30,035
115,436 Merck & Company, Inc. .................................. 3,913
234,825 Novartis AG** .......................................... 11,429
1,025,920 Pfizer Inc. ............................................ 27,874
391,115 Sanofi-Aventis,ADR ..................................... 17,354
205,162 Teva Pharmaceutical Industries Ltd.,
Sponsored ADR ........................................ 6,409
------------
233,121
------------
Total Health Care ...................................... 337,233
------------
INDUSTRIALS - 9.8%
CAPITAL GOODS - 6.9%
87,100 3M Company ............................................. 6,660
93,400 Empresa Brasileira de Aeronautica SA, ADR .............. 2,694
1,765,653 General Electric Company ............................... 63,917
71,900 Honeywell International Inc. ........................... 2,571
61,900 Ingersoll-Rand Company, Class A ........................ 4,758
82,300 Lockheed Martin Corporation** .......................... 5,016
8,300 Northrop Grumman Corporation ........................... 455
154,510 Raytheon Company ....................................... 5,811
524,025 Tyco International Ltd. ................................ 16,407
48,700 United Technologies Corporation ........................ 4,954
------------
113,243
------------
COMMERCIAL SERVICES & SUPPLIES - 0.9%
158,405 Apollo Group, Inc., Class A+** ......................... 11,424
23,500 Manpower Inc. .......................................... 906
108,700 Waste Management Inc. .................................. 3,097
------------
15,427
------------
TRANSPORTATION - 2.0%
50,700 Expeditors International of Washington, Inc.** ......... 2,490
308,005 FedEx Corporation ...................................... 26,165
44,900 United Parcel Service, Inc., Class B ................... 3,202
------------
31,857
------------
Total Industrials ...................................... 160,527
------------
INFORMATION TECHNOLOGY - 25.2%
COMMUNICATIONS EQUIPMENT - 6.3%
1,961,535 Cisco Systems, Inc.+ ................................... 33,895
584,000 Juniper Networks, Inc.+ ................................ 13,193
593,100 Lucent Technologies Inc.+** ............................ 1,441
2,406,205 Motorola, Inc. ......................................... 36,911
292,000 Nokia Oyj, Sponsored ADR ............................... 4,666
49,000 QUALCOMM Inc. .......................................... 1,710
170,375 Research In Motion Ltd.+ ............................... 10,974
------------
102,790
------------
COMPUTERS & PERIPHERALS - 3.2%
786,125 Dell Computer Corporation+ ............................. 27,381
73,000 EMC Corporation+ ....................................... 958
132,200 International Business Machines Corporation ............ 10,097
177,985 Lexmark International, Inc.+ ........................... 12,361
392,100 Sun Microsystems, Inc.+ ................................ 1,423
------------
52,220
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.7%
133,700 Agilent Technologies, Inc.+ ............................ 2,774
121,300 Ingram Micro Inc., Class A+ ............................ 2,021
43,200 L-3 Communications Holdings, Inc.** .................... 3,066
117,500 PerkinElmer, Inc. ...................................... 2,174
98,000 Tektronix, Inc. ........................................ 2,123
------------
12,158
------------
INTERNET SOFTWARE & SERVICES - 2.0%
369,500 Akamai Technologies, Inc.+ ............................. 4,364
44,100 VeriSign Inc.+ ......................................... 1,167
788,095 Yahoo! Inc.+ ........................................... 27,197
------------
32,728
------------
IT SERVICES - 0.4%
132,900 Automatic Data Processing, Inc. ........................ 5,773
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 7.0%
52,800 Altera Corporation+ .................................... 1,095
72,400 Analog Devices, Inc. ................................... 2,470
167,200 Broadcom Corporation, Class A+ ......................... 5,001
32,400 Fairchild Semiconductor International, Inc.+ ........... 436
1,527,655 Intel Corporation ...................................... 35,930
37,550 Samsung Electronics Company Ltd., GDR .................. 8,511
1,965,125 Texas Instruments Inc. ................................. 49,049
425,000 Xilinx, Inc. ........................................... 11,449
------------
113,941
------------
SOFTWARE - 5.6%
90,600 Adobe Systems Inc. ..................................... 5,388
61,900 Autodesk, Inc.** ....................................... 1,970
133,800 Cadence Design Systems, Inc.+** ........................ 1,873
107,600 Citrix Systems, Inc.+ .................................. 2,421
105,000 Electronic Arts Inc.+ .................................. 5,606
71,400 Mercury Interactive Corporation+ ....................... 2,951
See Notes to Financial Statements.
35
Portfolio of Investments (continued)
GROWTH FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
SOFTWARE - (CONTINUED)
2,317,012 Microsoft Corporation .................................. $ 58,620
549,500 Red Hat, Inc.+ ......................................... 5,907
150,100 SAP AG, Sponsored ADR .................................. 5,919
------------
90,655
------------
Total Information Technology ........................... 410,265
------------
MATERIALS - 1.7%
74,400 Air Products & Chemicals, Inc. ......................... 4,369
139,000 E.I. du Pont de Nemours & Company ...................... 6,548
131,000 Praxair, Inc. .......................................... 6,135
82,600 Rio Tinto PLC, Sponsored ADR ........................... 9,962
------------
Total Materials ........................................ 27,014
------------
TELECOMMUNICATION SERVICES - 0.6%
401,420 China Mobile (Hong Kong) Ltd. .......................... 7,145
144,500 Sprint Corporation-FON Group ........................... 3,217
------------
Total Telecommunication Services ....................... 10,362
------------
Total Common Stocks
(Cost $1,536,282) .................................... 1,601,029
------------
PRINCIPAL
AMOUNT
(000S)
---------
U.S. GOVERNMENT AGENCY DISCOUNT NOTE - 1.0%
(Cost $16,598)
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 1.0%
$ 16,600 2.850% due 05/02/2005++ ............................. 16,598
------------
REPURCHASE AGREEMENT - 1.2%
(Cost $19,939)
19,939 Agreement with Morgan Stanley,
2.850% dated 04/29/2005, to be
repurchased at $19,944,000 on
05/02/2005 (Collateralized by
U.S. Treasury Note, 2.000% due
07/15/2014, market value
$20,588,000) .................................... 19,939
------------
SHORT-TERM INVESTMENT - 4.3%
(Cost $69,998)
69,998 Mellon GSL DBT II
Collateral Fund+++ ...................... 69,998
------------
TOTAL INVESTMENTS (Cost $1,642,817*) ......................... 104.7% 1,707,564
OTHER ASSETS (LIABILITIES) (NET) ............................. (4.7) (76,978)
----- ------------
NET ASSETS ................................................... 100.0% $ 1,630,586
===== ============
SCHEDULE OF FORWARD FOREIGN CURRENCY CONTRACTS
FORWARD FOREIGN CURRENCY CONTRACTS TO BUY
CONTRACTS TO RECEIVE
(000s)
NET
IN UNREALIZED
EXPIRATION LOCAL VALUE IN EXCHANGE DEPRECIATION
DATE CURRENCY U.S. $ FOR U.S. $ OF CONTRACTS
- ---------- ----------- -------- ---------- -------------
07/15/2005 EUR 1,175 1,515 1,528 $ (13)
09/09/2005 EUR 50 64 65 (1)
---------
$ (14)
---------
FORWARD FOREIGN CURRENCY CONTRACTS TO SELL
CONTRACTS TO DELIVER
(000s)
NET
IN UNREALIZED
EXPIRATION LOCAL VALUE IN EXCHANGE DEPRECIATION
DATE CURRENCY U.S. $ FOR U.S. $ OF CONTRACTS
- ---------- ----------- -------- ---------- -------------
07/15/2005 EUR 1,175 1,515 1,518 $ 3
09/09/2005 EUR 50 64 65 1
-----
$ 4
-----
Net Unrealized Depreciation of Forward Foreign
Currency Contracts ........................................ $ (10)
=====
GLOSSARY OF TERMS
ADR -- American Depositary Receipt
EUR -- EURO
GDR -- Global Depositary Receipt
- -----------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2005, and have an
aggregate market value of $67,938,000, representing 4.2% of the total net
assets of the Fund (Collateral Value $69,998,000).
+ Non-income producing security.
++ Rate represents annualized yield at date of purchase.
+++ Represents investment purchased with cash collateral for securities
loaned.
See Notes to Financial Statements.
36
Portfolio of Investments
SMALL CAP VALUE FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000S)
- ------ ------
COMMON STOCKS - 77.1%
CONSUMER DISCRETIONARY - 8.7%
AUTOMOBILES & COMPONENTS - 1.6%
391,000 Tenneco Automotive, Inc.+ .................................. $ 5,016
---------
CONSUMER DURABLES & APPAREL - 1.7%
72,600 Kellwood Company............................................ 1,854
101,800 RC2 Corporation+ ........................................... 3,529
---------
5,383
---------
MEDIA - 2.9%
119,400 Carmike Cinemas, Inc. ...................................... 4,179
296,000 Reader's Digest Association, Inc. .......................... 5,032
---------
9,211
---------
RETAILING - 2.5%
248,500 Blockbuster Inc., Class B .................................. 2,346
204,400 Movie Gallery, Inc. ........................................ 5,525
---------
7,871
---------
Total Consumer Discretionary................................ 27,481
---------
CONSUMER STAPLES - 4.3%
FOOD & STAPLES RETAILING - 2.2%
126,400 Fresh Del Monte Produce, Inc. (F) .......................... 3,653
142,800 John B. Sanfilippo & Son, Inc.+ ............................ 3,207
---------
6,860
---------
FOOD, BEVERAGE & TOBACCO - 0.1%
39,600 National Beverage Corporation+ ............................. 281
---------
HOUSEHOLD & PERSONAL PRODUCTS - 2.0%
74,100 Central Garden & Pet Company+ .............................. 3,082
75,800 Jarden Corporation+** ...................................... 3,386
---------
6,468
---------
Total Consumer Staples ..................................... 13,609
---------
ENERGY - 9.8%
179,800 Cimarex Energy Company+** .................................. 6,383
218,600 Comstock Resources, Inc.+ .................................. 5,531
103,000 Encore Acquisition Company+ ................................ 3,782
85,400 Plains Exploration & Production Company+ ................... 2,748
188,400 St. Mary Land & Exploration Company ........................ 4,088
103,500 Stone Energy Corporation+** ................................ 4,651
99,100 Tesoro Corporation+ ........................................ 3,760
---------
Total Energy ............................................... 30,943
---------
FINANCIALS - 8.7%
BANKS - 4.8%
121,500 Capital Corporation of the West ............................ 2,947
178,500 Dime Community Bancshares .................................. 2,649
189,200 Flagstar Bancorp, Inc.** ................................... 3,602
237,930 Oriental Financial Group, Inc. ............................. 3,319
136,140 U.S.B. Holding Company, Inc. ............................... 2,750
---------
15,267
---------
INSURANCE - 3.9%
152,900 Navigators Group, Inc.+ .................................... 4,893
100,200 Stewart Information Services Corporation ................... 3,609
236,800 Universal American Financial Corporation+ .................. 3,966
---------
12,468
---------
Total Financials............................................ 27,735
---------
HEALTH CARE - 7.6%
HEALTH CARE EQUIPMENT & SERVICES - 3.3%
966,700 Gene Logic, Inc.+ .......................................... 2,755
106,400 Kindred Healthcare, Inc.+ .................................. 3,501
141,100 Owens & Minor, Inc. ........................................ 4,093
---------
10,349
---------
PHARMACEUTICALS & BIOTECHNOLOGY - 4.3%
179,400 Andrx Corporation+** ....................................... 3,572
356,200 Bradley Pharmaceuticals, Inc.+** ........................... 3,184
107,200 Kos Pharmaceuticals, Inc.+ ................................. 5,164
277,700 Lannett Company, Inc.+ ..................................... 1,680
---------
13,600
---------
Total Health Care........................................... 23,949
---------
INDUSTRIALS - 14.5%
CAPITAL GOODS - 3.9%
131,300 Cubic Corporation .......................................... 2,310
105,400 DRS Technologies, Inc.+ .................................... 4,664
147,000 Griffon Corporation+** ..................................... 2,821
132,800 Lennox International, Inc.** ............................... 2,596
---------
12,391
---------
COMMERCIAL SERVICES & SUPPLIES - 1.4%
191,900 Duratek, Inc.+ ............................................. 4,446
---------
TRANSPORTATION - 9.2%
112,700 Alaska Air Group, Inc.+** .................................. 3,006
374,200 AMR Corporation+** ......................................... 3,918
302,100 Continental Airlines, Inc., Class B+** ..................... 3,577
114,500 Dampskibsselskabet Torm A/S, ADR** ......................... 5,704
747,100 Delta Air Lines, Inc.+** ................................... 2,458
108,200 Genesee & Wyoming Inc., Class A+ ........................... 2,595
786,900 Northwest Airlines Corporation+** .......................... 4,076
204,300 OMI Corporation ............................................ 3,716
---------
29,050
---------
Total Industrials .......................................... 45,887
---------
INFORMATION TECHNOLOGY - 9.0%
COMPUTERS & PERIPHERALS - 2.2%
187,500 Hutchinson Technology, Inc.+ ............................... 6,945
---------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 3.5%
477,500 Axcelis Technologies, Inc.+ ................................ 2,965
562,000 Credence Systems Corporation+** ............................ 3,535
336,300 OmniVision Technologies, Inc.+** ........................... 4,708
---------
11,208
---------
See Notes to Financial Statements.
37
Portfolio of Investments (continued)
SMALL CAP VALUE FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ---------
COMMON STOCKS - (CONTINUED)
INFORMATION TECHNOLOGY - (CONTINUED)
SOFTWARE - 3.3%
1,498,300 Atari, Inc.+ ............................................... $ 3,986
786,200 Geac Computer Corporation Ltd. (F)+ ........................ 6,533
---------
10,519
---------
Total Information Technology ............................... 28,672
---------
MATERIALS - 11.2%
81,300 Albemarle Corporation ...................................... 2,976
202,400 Century Aluminum Company+ .................................. 4,716
337,900 Goldcorp Inc.** ............................................ 4,373
64,000 Headwaters, Inc.+ .......................................... 2,046
2,962,700 Kingsgate Consolidated Ltd. ................................ 5,244
310,600 Metal Management, Inc. ..................................... 6,265
3,271,400 Minara Resources Ltd. ...................................... 4,670
439,900 Randgold Resources Ltd., ADR+** ............................ 5,228
---------
Total Materials ............................................ 35,518
---------
TELECOMMUNICATION SERVICES - 2.4%
200,100 Asia Satellite Telecommunications
Holdings Ltd., Sponsored ADR ............................. 3,718
125,700 USA Mobility, Inc.+ ........................................ 3,763
---------
Total Telecommunication Services ........................... 7,481
---------
UTILITIES - 0.9%
81,700 Suburban Propane Partners LP** ............................. 2,766
---------
Total Common Stocks
(Cost $226,227) .......................................... 244,041
---------
CANADIAN INCOME TRUSTS - 6.5%
ENERGY - 3.0%
170,900 Bonavista Energy Trust ..................................... 4,055
37,500 Peyto Energy Trust** ....................................... 1,467
245,500 Vermilion Energy Trust** ................................... 3,984
---------
9,506
---------
FOOD, BEVERAGE & TOBACCO - 1.5%
315,700 Connors Brothers Income Fund ............................... 4,639
---------
MATERIALS - 2.0%
38,100 Fording Canadian Coal Trust ................................ 3,385
260,900 TimberWest Forest Corporation .............................. 2,934
---------
6,319
---------
Total Canadian Income Trusts
(Cost $14,896) ........................................... 20,464
---------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 4.7%
33,400 Alexandria Real Estate Equities, Inc. ...................... 2,299
107,200 Entertainment Properties Trust ............................. 4,631
290,800 Equity Inns, Inc. .......................................... 3,275
50,300 Sovran Self Storage, Inc. .................................. 2,150
227,500 Winston Hotels, Inc. ....................................... 2,616
---------
Total REITs
(Cost $12,722) ........................................... 14,971
---------
VALUE
CONTRACTS (000S)
- --------- ---------
PURCHASED PUT OPTIONS - 5.4%
1,334 iShares Russell 2000 Index,
Expires January 2006 @ $95 ............................... $ 367
5,365 iShares Russell 2000 Index,
Expires January 2007 @ $110 .............................. 5,526
14,625 iShares Russell 2000 Index,
Expires January 2007 @ $95 ............................... 8,263
20,000 Nasdaq 100 Index,
Expires January 2007 @ $29 ............................... 2,900
---------
Total Purchased Put Options
(Cost $14,975) ........................................... 17,056
---------
PRINCIPAL
AMOUNT
(000S)
- ---------
REPURCHASE AGREEMENT - 7.9%
(Cost $24,999)
$ 24,999 Agreement with Morgan Stanley, 2.850% dated 04/29/2005, to be
repurchased at $25,005,000 on 05/02/2005 (Collateralized by
U.S. Treasury Note, 2.000% due 07/15/2014, market value
$25,813,000) ........................................................... 24,999
---------
SHORT-TERM INVESTMENT - 16.3%
(Cost $51,712)
51,712 Mellon GSL DBT II
Collateral Fund++ ...................................................... 51,712
---------
TOTAL INVESTMENTS (Cost $345,531*).............................................. 117.9% 373,243
OTHER ASSETS (LIABILITIES) (NET)................................................ (17.9) (56,553)
----- ---------
NET ASSETS...................................................................... 100.0% $ 316,690
===== =========
- --------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2005, and have an
aggregate market value of $48,944,000, representing 15.5% of the total net
assets of the Fund (Collateral Value $51,712,000).
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities
loaned.
GLOSSARY OF TERMS
ADR -- American Depositary Receipt
(F) -- Foreign Shares
See Notes to Financial Statements.
38
Portfolio of Investments
SMALL CAP GROWTH FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ------
COMMON STOCKS - 94.2%
CONSUMER DISCRETIONARY - 16.8%
CONSUMER DURABLES & APPAREL - 4.2%
35,880 Carter's, Inc.+ ....................................... $ 1,353
175,248 Coach, Inc.+ .......................................... 4,697
59,902 Deckers Outdoor Corporation+** ........................ 1,262
96,501 Desarrolladora Homex SA de CV, ADR+** ................. 2,136
105,641 Warnaco Group, Inc.+ .................................. 2,373
----------------
11,821
----------------
HOTELS, RESTAURANTS & LEISURE - 4.2%
72,100 Cheesecake Factory, Inc.+ ............................. 2,213
63,712 Ctrip.com International Ltd., ADR+ .................... 2,796
30,094 Four Seasons Hotels, Inc. ............................. 1,910
72,752 RARE Hospitality International, Inc.+ ................. 2,024
85,846 Sonic Corporation+ .................................... 2,750
----------------
11,693
----------------
MEDIA - 0.7%
125,408 Lin TV Corporation, Class A+........................... 1,955
----------------
RETAILING - 7.7%
53,919 America's Car-Mart, Inc.+ ............................. 1,140
141,213 Audible, Inc.+ ........................................ 1,810
50,152 Blue Nile, Inc.+** .................................... 1,262
143,401 Build-A-Bear-Workshop, Inc.+ .......................... 3,845
56,102 Chico's FAS, Inc.+** .................................. 1,438
46,139 Guitar Center, Inc.+** ................................ 2,277
108,006 Hibbett Sporting Goods, Inc.+ ......................... 2,913
2,700 Provide Commerce, Inc.+ ............................... 48
59,781 Stamps.com, Inc.+ ..................................... 1,155
34,489 Tractor Supply Company+ ............................... 1,387
98,482 Urban Outfitters, Inc.+ ............................... 4,363
----------------
21,638
----------------
Total Consumer Discretionary .......................... 47,107
----------------
CONSUMER STAPLES - 3.8%
FOOD & STAPLES RETAILING - 1.6%
121,730 Central European Distribution Corporation+ ............ 4,518
----------------
FOOD, BEVERAGE & TOBACCO - 1.4%
68,963 Hansen Natural Corporation+** ......................... 3,909
----------------
HOUSEHOLD & PERSONAL CARE PRODUCTS - 0.8%
53,662 USANA Health Sciences, Inc.+** ........................ 2,218
----------------
Total Consumer Staples ................................ 10,645
----------------
ENERGY - 3.8%
266,550 Carrizo Oil & Gas, Inc.+ .............................. 4,406
29,456 Petroleum Development Corporation+ .................... 754
135,850 Veritas DGC, Inc.+ .................................... 3,478
69,860 Whiting Petroleum Corporation+ ........................ 2,115
----------------
Total Energy .......................................... 10,753
----------------
FINANCIALS - 5.9%
BANKS - 3.8%
78,200 Brookline Bancorp, Inc. ............................... 1,173
49,046 Downey Financial Corporation .......................... 3,175
20,150 Mercantile Bank Corporation ........................... 798
78,800 Signature Bank+ ....................................... 1,941
78,037 Westcorp .............................................. 3,491
----------------
10,578
----------------
DIVERSIFIED FINANCIALS - 0.6%
63,884 First Cash Financial Services, Inc.+ .................. 1,248
14,600 World Acceptance Corporation+ ......................... 372
----------------
1,620
----------------
INSURANCE - 1.5%
72,106 Delphi Financial Group, Inc., Class A ................. 2,994
42,700 Hub International Ltd.................................. 813
16,000 PXRE Group Ltd......................................... 377
----------------
4,184
----------------
Total Financials ...................................... 16,382
----------------
HEALTH CARE - 28.2%
HEALTH CARE EQUIPMENT & SERVICES - 15.2%
70,514 Advisory Board Company+ ............................... 2,870
184,700 Align Technology, Inc.+** ............................. 1,555
70,628 American Healthways, Inc.+** .......................... 2,638
109,231 Animas Corporation+** ................................. 2,048
67,466 ArthroCare Corporation+** ............................. 1,982
1,500 Aspect Medical Systems, Inc.+ ......................... 39
65,187 Centene Corporation+ .................................. 1,815
149,832 Conceptus, Inc.+** .................................... 915
53,800 Conor Medsystems, Inc.+ ............................... 726
56,762 HealthExtras, Inc.+ ................................... 939
50,550 Hologic, Inc.+ ........................................ 1,799
74,900 Immucor, Inc.+ ........................................ 2,235
52,311 Kensey Nash Corporation+** ............................ 1,438
82,852 Kyphon, Inc.+ ......................................... 2,167
61,684 Laserscope+ ........................................... 1,954
204,580 LCA-Vision, Inc. ...................................... 8,017
90,852 Merge Technologies, Inc.+ ............................. 1,475
115,795 SFBC International, Inc.+ ............................. 3,613
143,117 Ventiv Health, Inc.+ .................................. 2,984
127,619 VNUS Medical Technologies, Inc.+** .................... 1,226
----------------
42,435
----------------
PHARMACEUTICALS & BIOTECHNOLOGY - 13.0%
89,011 Able Laboratories, Inc.+ .............................. 2,122
121,573 Anika Therapeutics, Inc.+ ............................. 1,797
96,356 Bone Care International, Inc.+ ........................ 2,487
72,680 Connetics Corporation+ ................................ 1,579
148,500 CV Therapeutics, Inc.+** .............................. 2,943
55,438 Digene Corporation+ ................................... 1,056
163,834 Dyax Corporation+ ..................................... 652
52,300 Encysive Pharmaceuticals, Inc.+ ....................... 511
See Notes to Financial Statements.
39
Portfolio of Investments (continued)
SMALL CAP GROWTH FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ------
COMMON STOCKS - (CONTINUED)
HEALTH CARE - (CONTINUED)
PHARMACEUTICALS & BIOTECHNOLOGY - (CONTINUED)
137,311 InKine Pharmaceutical Company, Inc.+ ............. $ 324
197,510 Isolagen, Inc.+ .................................. 958
93,329 Kos Pharmaceuticals, Inc.+ ....................... 4,496
130,101 LifeCell Corporation+ ............................ 1,561
49,121 Medicis Pharmaceutical Corporation, Class A** .... 1,380
82,944 MGI Pharma, Inc.+** .............................. 1,829
162,434 Nektar Therapeutics+ ............................. 2,316
137,300 POZEN, Inc.+ ..................................... 963
111,657 Protein Design Labs, Inc.+** ..................... 1,996
71,147 Rigel Pharmaceuticals, Inc.+ ..................... 1,220
47,055 Salix Pharmaceuticals Ltd.+ ...................... 673
116,539 United Therapeutics Corporation+** ............... 5,593
--------------
36,456
--------------
Total Health Care ................................ 78,891
--------------
INDUSTRIALS - 11.4%
CAPITAL GOODS - 5.3%
52,431 A.S.V., Inc.+ .................................... 1,874
20,100 American Science & Engineering, Inc.+ ............ 770
143,980 Ceradyne, Inc.+ .................................. 2,859
51,034 Engineered Support Systems, Inc. ................. 1,803
65,375 Lincoln Electric Holdings, Inc. .................. 1,997
38,533 MTC Technologies, Inc.+ .......................... 1,168
36,200 NCI Building Systems, Inc.+ ...................... 1,174
36,806 Trex Company, Inc.+** ............................ 1,479
151,821 TurboChef Technologies, Inc.+** .................. 1,581
--------------
14,705
--------------
COMMERCIAL SERVICES & SUPPLIES - 4.5%
61,930 Charles River Associates, Inc.+ .................. 3,245
92,100 Collectors Universe, Inc.+ ....................... 1,674
101,647 Navigant Consulting, Inc.+ ....................... 2,386
71,324 Portfolio Recovery Associates, Inc.+ ............. 2,564
97,500 Resources Connection, Inc.+ ...................... 1,863
48,000 TRM Corporation+ ................................. 803
--------------
12,535
--------------
TRANSPORTATION - 1.6%
86,016 Knight Transportation, Inc. ...................... 1,818
59,872 Old Dominion Freight Line, Inc.+ ................. 1,682
69,600 Universal Truckload Services, Inc.+ .............. 1,109
--------------
4,609
--------------
Total Industrials ................................ 31,849
--------------
INFORMATION TECHNOLOGY - 24.0%
COMMUNICATIONS EQUIPMENT - 3.8%
222,710 AudioCodes Ltd.+ ................................. 2,163
189,782 Ixia+ ............................................ 3,038
185,600 NMS Communications Corporation+ .................. 590
84,000 Novatel Wireless, Inc.+ .......................... 753
83,673 Orckit Communications Ltd.+** .................... 1,639
88,590 SafeNet, Inc.+ ................................... 2,476
--------------
10,659
--------------
COMPUTERS & PERIPHERALS - 1.7%
41,720 Hutchinson Technology, Inc.+ ..................... 1,545
110,896 M-Systems Flash Disk Pioneers Ltd.+ .............. 2,102
63,608 Synaptics, Inc.+ ................................. 1,153
--------------
4,800
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.4%
136,572 Merix Corporation+ ............................... 1,073
--------------
INTERNET SOFTWARE & SERVICES - 8.7%
173,300 Akamai Technologies, Inc.+** ..................... 2,047
633,279 aQuantive, Inc.+ ................................. 7,029
90,021 Digital River, Inc.+ ............................. 2,395
8,705 eCollege.com+ .................................... 97
144,100 Greenfield Online, Inc.+ ......................... 2,597
218,229 Interwoven, Inc.+ ................................ 1,685
261,900 iVillage, Inc.+ .................................. 1,715
128,000 Jupitermedia Corporation+ ........................ 1,627
118,491 Marchex, Inc., Class B+** ........................ 2,000
278,932 MatrixOne, Inc.+ ................................. 1,191
177,563 ValueClick, Inc.+ ................................ 1,839
--------------
24,222
--------------
IT SERVICES - 2.0%
140,924 Euronet Worldwide, Inc.+ ......................... 4,166
160,024 RightNow Technologies, Inc.+ .................... 1,427
--------------
5,593
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 5.7%
66,255 Cymer, Inc.+** ................................... 1,643
163,882 Mattson Technology, Inc.+ ........................ 1,041
193,052 O2Micro International Ltd.+ ...................... 1,990
81,685 Power Integrations, Inc.+** ...................... 1,777
231,634 PowerDsine Ltd.+ ................................. 1,842
99,366 Sigmatel, Inc.+ .................................. 2,602
119,342 Skyworks Solutions, Inc.+ ........................ 625
164,952 Tessera Technologies, Inc.+ ...................... 4,381
--------------
15,901
--------------
SOFTWARE - 1.7%
155,656 Agile Software Corporation+ ...................... 1,022
15,530 Altiris, Inc.+** ................................. 253
106 Computer Associates International, Inc. .......... 3
59,519 Manhattan Associates, Inc.+** .................... 1,124
115,093 PDF Solutions, Inc.+ ............................. 1,523
190,271 SupportSoft, Inc.+ ............................... 904
--------------
4,829
--------------
Total Information Technology ..................... 67,077
--------------
See Notes to Financial Statements.
40
Portfolio of Investments (continued)
SMALL CAP GROWTH FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ------
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATION SERVICES - 0.3%
56,006 Inphonic, Inc.+** .......................... $ 864
--------------
Total Common Stocks
(Cost $278,189) .......................... 263,568
--------------
REAL ESTATE INVESTMENT TRUST (REIT) - 0.4%
(Cost $1,138)
42,840 RAIT Investment Trust ...................... 1,162
--------------
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ------
REPURCHASE AGREEMENT - 5.8%
(Cost $16,314)
$ 16,314 Agreement with Morgan Stanley, 2.850% dated
04/29/2005, to be repurchased at $16,318,000
on 05/02/2005 (Collateralized by U.S. Treasury
Note, 2.000% due 07/15/2014, market value
$16,845,000) ............................................. $ 16,314
--------------
SHORT-TERM INVESTMENT - 9.4%
(Cost $26,297)
26,297 Mellon GSL DBT II Collateral Fund++ ....................... 26,297
--------------
TOTAL INVESTMENTS (Cost $321,938*) ............................................... 109.8% 307,341
OTHER ASSETS (LIABILITIES) (NET) ................................................. (9.8) (27,482)
----- --------------
NET ASSETS ....................................................................... 100.0% $ 279,859
===== ==============
- ----------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2005, and have an
aggregate market value of $25,026,000, representing 9.0% of the total net
assets of the Fund (Collateral Value $26,297,000).
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities
loaned.
GLOSSARY OF TERMS
ADR -- American Depositary Receipt
See Notes to Financial Statements.
41
Portfolio of Investments
INTERNATIONAL GROWTH FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ------
COMMON STOCKS - 95.1%
JAPAN - 23.5% ****
54,710 Advantest Corporation ................................... $ 3,861
246,000 AEON Company Ltd. ....................................... 3,824
15,248 Aiful Corporation ....................................... 1,130
53,900 Astellas Pharma Inc. .................................... 1,953
50,000 Bridgestone Corporation ................................. 961
51,800 Canon Inc. .............................................. 2,707
32,700 Chubu Electric Power Company Inc.** ..................... 784
35,700 Daito Trust Construction Company, Ltd. .................. 1,430
87,000 Daiwa House Industry Company Ltd. ....................... 977
210 East Japan Railway Company** ............................ 1,094
68,600 FANUC Ltd. .............................................. 4,056
246,000 Furukawa Electric Company Ltd.+.......................... 1,089
17,900 Hirose Electric Company Ltd. ............................ 1,835
14,700 Hoya Corporation ........................................ 1,538
368,000 Japan Airlines System Corporation** ..................... 1,046
125,200 Kansai Electric Power Company Inc. ...................... 2,520
402 Millea Holdings, Inc. ................................... 5,483
328,400 Mitsubishi Corporation .................................. 4,504
671,000 Mitsubishi Estate Company Ltd. .......................... 7,238
202,000 Mitsubishi Heavy Industries Ltd. ........................ 538
523 Mitsubishi Tokyo Financial Group, Inc. .................. 4,539
167,000 Mitsui & Company, Ltd. .................................. 1,588
89,000 Mitsui Fudosan Company Ltd. ............................. 997
247,000 Mitsui Sumitomo Insurance Company Ltd. .................. 2,247
546 Mizuho Financial Group, Inc. ............................ 2,567
23,000 Murata Manufacturing Company Ltd. ....................... 1,145
236,000 NEC Corporation ......................................... 1,301
23,500 Nidec Corporation ....................................... 2,764
106,000 Nikon Corporation** ..................................... 1,115
18,000 Nintendo Company Ltd. ................................... 2,055
122,000 Nippon Electric Glass Company, Ltd. ..................... 1,946
1,163 Nippon Telegraph & Telephone Corporation ................ 4,903
710,400 Nissan Motor Company Ltd.** ............................. 7,046
32,000 Nitto Denko Corporation ................................. 1,749
50,000 OMRON Corporation ....................................... 1,094
32,400 ORIX Corporation ........................................ 4,416
129,000 Ricoh Company, Ltd. ..................................... 2,060
18,500 Rohm Company Ltd. ....................................... 1,745
186,600 Sankyo Company Ltd.** ................................... 3,889
233,000 Sekisui House Ltd. ...................................... 2,467
12,100 Shimamura Company Ltd. .................................. 1,003
31,600 SMC Corporation** ....................................... 3,330
78,300 SOFTBANK Corporation** .................................. 3,151
157,000 Sompo Japan Insurance Inc. .............................. 1,526
37,190 Sony Corporation ........................................ 1,390
447,000 Sumitomo Chemical Company Ltd.** ........................ 2,289
441,000 Sumitomo Corporation .................................... 3,743
1,430 Sumitomo Mitsui Financial Group, Inc.** ................. 9,247
285,200 Suzuki Motor Corporation ................................ 4,872
24,950 T&D Holdings, Inc. ...................................... 1,233
76,900 Takeda Pharmaceutical Company Ltd.** .................... 3,748
19,700 TDK Corporation ......................................... 1,379
73,300 Tokyo Electron Ltd. ..................................... 3,789
407,000 TOKYO GAS Company Ltd.** ................................ 1,634
93,500 Toyota Motor Corporation ................................ 3,424
1,720 UFJ Holdings, Inc.+ ..................................... 9,055
26,100 Unicharm Corporation .................................... 1,167
433 Yahoo! Japan Corporation+ ............................... 971
47,800 Yamada Denki Company, Ltd. .............................. 2,298
251,500 Yamato Transport Company Ltd. ........................... 3,327
-------
162,777
-------
UNITED KINGDOM - 15.4%
50,900 Anglo American PLC ...................................... 1,127
437,000 ARM Holdings PLC ........................................ 798
156,400 AstraZeneca PLC ......................................... 6,804
129,200 AstraZeneca PLC (F) ..................................... 5,617
110,084 BHP Billiton PLC ........................................ 1,342
212,500 Bradford & Bingley PLC .................................. 1,233
27,300 Brambles Industries PLC ................................. 151
205,800 Diageo PLC .............................................. 3,038
135,400 Hanson PLC .............................................. 1,245
497,400 HBOS PLC ................................................ 7,328
301,400 HSBC Holdings PLC ....................................... 4,803
105,600 Johnston Press PLC ...................................... 997
278,400 Lloyds TSB Group PLC .................................... 2,376
148,200 National Grid Group PLC ................................. 1,455
47,800 Next PLC ................................................ 1,347
92,000 Northern Rock PLC ....................................... 1,305
391,700 Pearson PLC ............................................. 4,744
35,900 Reckitt Benckiser PLC ................................... 1,159
523,500 Reed Elsevier PLC ....................................... 5,107
352,400 Royal Bank of Scotland Group PLC++....................... 10,579
101,200 Scottish & Southern Energy PLC .......................... 1,809
568,800 Shell Transport & Trading Company PLC ................... 5,093
224,000 Standard Chartered PLC .................................. 4,016
233,900 Tesco PLC ............................................... 1,374
194,000 TI Automotive Ltd., Class A+............................. 0***++
455,800 Unilever PLC ............................................ 4,320
9,411,719 Vodafone Group PLC ...................................... 24,457
71,600 Wolseley PLC ............................................ 1,431
119,500 Xstrata PLC ............................................. 2,056
-------
107,111
-------
FRANCE - 10.8%
75,900 Accor SA** .............................................. 3,455
61,500 AXA** ................................................... 1,503
163,900 BNP Paribas SA .......................................... 10,736
175,600 Bouygues SA++............................................ 6,969
26,300 Carrefour SA ............................................ 1,269
19,600 Compagnie Generale des Etablissements Michelin,
Class B** ............................................... 1,182
24,800 Dassault Systemes SA .................................... 1,157
28,100 Essilor International SA ................................ 1,998
46,800 Groupe Danone** ......................................... 4,360
24,298 L'Air Liquide SA ........................................ 4,315
35,000 L'Oreal SA .............................................. 2,504
22,300 Lafarge SA .............................................. 2,016
246,300 Sanofi-Aventis** ........................................ 21,679
See Notes to Financial Statements.
42
Portfolio of Investments (continued)
INTERNATIONAL GROWTH FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ ------
COMMON STOCKS - (CONTINUED)
FRANCE-(CONTINUED)
10,667 Sanofi-Aventis (F) ....................................... $ 935
72,787 Schneider Electric SA .................................... 5,217
17,900 Societe Generale Group ................................... 1,771
93,200 STMicroelectronics NV .................................... 1,306
93,200 Vivendi Universal SA+ .................................... 2,804
----------
75,176
----------
SWITZERLAND - 8.5%
19,900 Adecco SA ................................................ 956
236,782 Compagnie Financiere Richemont AG, A Units ............... 7,022
97,701 Credit Suisse Group** .................................... 4,079
127,066 Holcim Ltd. .............................................. 7,685
37,431 Nestle SA** .............................................. 9,801
241,857 Novartis AG .............................................. 11,715
17,462 Roche Holding AG-Genusschein** ........................... 2,098
1,310 Serono SA** .............................................. 835
81,147 Swiss Reinsurance Company ................................ 5,356
11,589 Swisscom AG .............................................. 3,990
11,695 Syngenta AG .............................................. 1,206
10,500 Synthes, Inc. ............................................ 1,185
41,956 UBS AG ................................................... 3,341
----------
59,269
----------
NETHERLANDS - 8.3%
350,140 ABN AMRO Holding NV ...................................... 8,489
627,936 AEGON NV** ............................................... 3,899
37,100 Euronext NV .............................................. 1,216
85,625 Heineken Holding NV, Class A ............................. 2,442
173,406 Heineken NV .............................................. 5,485
191,914 ING Groep NV ............................................. 5,211
870,200 Koninklijke (Royal) KPN NV** ............................. 7,223
31,000 Koninklijke (Royal) Numico NV+ ........................... 1,276
79,400 Reed Elsevier NV** ....................................... 1,137
237,600 Royal Dutch Petroleum Company** .......................... 13,829
14,900 Royal Dutch Petroleum Company (F) ........................ 868
75,500 TNT NV ................................................... 2,046
35,200 Unilever NV .............................................. 2,255
161,924 VNU NV ................................................... 2,267
----------
57,643
----------
GERMANY - 5.5%
35,500 Allianz AG** ............................................. 4,214
90,500 Bayer AG** ............................................... 2,953
104,900 Bayerische Hypo-und Vereinsbank AG+ ...................... 2,481
28,500 Bayerische Motoren Werke (BMW) AG** ...................... 1,199
85,300 DaimlerChrysler AG** ..................................... 3,331
23,400 Deutsche Bank AG** ....................................... 1,899
47,723 Deutsche Boerse AG ....................................... 3,587
66,800 E.ON AG** ................................................ 5,605
122,000 Infineon Technologies AG+ ................................ 1,009
1,880 Lanxess AG+ .............................................. 39
22,000 SAP AG** ................................................. 3,446
5,200 SAP AG, Sponsored ADR .................................... 205
63,700 Siemens AG ............................................... 4,642
81,000 Volkswagen AG** .......................................... 3,361
----------
37,971
----------
SPAIN - 5.4%
30,800 Altadis, SA** ............................................ 1,299
506,900 Banco Bilbao Vizcaya Argentaria SA** ..................... 7,795
452,600 Banco Santander Central Hispano SA ....................... 5,253
85,000 Iberdrola SA ............................................. 2,206
117,100 Industria de Diseno Textil SA (Inditex)** ................ 3,460
295,900 Repsol YPF SA ............................................ 7,475
595,841 Telefonica SA** .......................................... 10,068
----------
37,556
----------
CANADA - 4.1%
153,900 Abitibi-Consolidated Inc. ................................ 664
119,900 Alcan Inc. ............................................... 3,888
59,700 Cameco Corporation ....................................... 2,338
10,300 Falconbridge Ltd. ........................................ 342
14,600 Great-West Lifeco Inc.** ................................. 320
86,400 Inco Ltd. (F)+ ........................................... 3,088
14,200 Magna International Inc., Class A ........................ 872
25,800 Manulife Financial Corporation** ......................... 1,182
30,100 National Bank of Canada** ................................ 1,254
28,200 Noranda, Inc.** .......................................... 529
59,800 Potash Corporation of Saskatchewan Inc. .................. 5,035
44,800 Suncor Energy Inc. ....................................... 1,654
114,400 TELUS Corporation** ...................................... 3,422
111,200 Thomson Corporation** .................................... 3,675
----------
28,263
----------
AUSTRALIA - 2.4% ****
195,100 Amcor Ltd. ............................................... 984
60,162 Australia & New Zealand Banking Group Ltd. ............... 1,013
228,138 Brambles Industries Ltd.** ............................... 1,399
319,702 Foster's Group Ltd. ...................................... 1,278
296,500 Insurance Australia Group Ltd. ........................... 1,403
169,100 Promina Group Ltd. ....................................... 674
178,468 QBE Insurance Group Ltd. ................................. 2,077
281,256 Rinker Group Ltd. ........................................ 2,497
55,300 Wesfarmers Ltd. .......................................... 1,550
81,200 Westpac Banking Corporation .............................. 1,233
194,012 Woolworths Ltd. .......................................... 2,317
----------
16,425
----------
HONG KONG - 1.6% ****
196,100 Esprit Holdings Ltd.++ ................................... 1,459
470,000 Hang Lung Group Ltd. ..................................... 847
850,000 Hang Lung Properties Ltd. ................................ 1,303
79,000 Hang Seng Bank Ltd. ...................................... 1,079
911,500 Johnson Electric Holdings Ltd. ........................... 813
1,780,000 Li & Fung Ltd. ........................................... 3,402
143,000 Sung Hung Kai Properties Ltd. ............................ 1,367
117,800 Swire Pacific Ltd., Class A .............................. 982
----------
11,252
----------
See Notes to Financial Statements.
43
Portfolio of Investments (continued)
INTERNATIONAL GROWTH FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- ------ -----------
COMMON STOCKS - (CONTINUED)
SWEDEN - 1.4%
92,100 Assa Abloy AB, B Shares ................................ $ 1,186
42,700 Atlas Copco Group AB, Class A** ........................ 1,928
35,400 Sandvik AB** ........................................... 1,378
1,800 Scania AB, Class B ..................................... 70
27,400 Svenska Cellulosa AB, Class B** ........................ 952
1,143,000 Telefonaktiebolaget LM Ericsson, B Shares .............. 3,345
34,000 Telefonaktiebolaget LM Ericsson,
Sponsored ADR** ...................................... 1,001
-----------
9,860
-----------
SOUTH KOREA - 1.2% ****
17,616 Samsung Electronics Company Ltd. ....................... 7,985
-----------
SINGAPORE - 1.1% ****
149,000 DBS Group Holdings Ltd. ................................ 1,301
3,252,675 Singapore Telecommunications, Ltd.++.................... 5,107
122,000 United Overseas Bank Ltd ............................... 1,065
-----------
7,473
-----------
MEXICO - 0.9%
129,000 America Movil SA de CV, Series L, ADR .................. 6,405
-----------
DENMARK - 0.9%
51,800 Novo Nordisk A/S, Class B .............................. 2,610
78,300 TDC A/S ................................................ 3,346
-----------
5,956
-----------
FINLAND - 0.6%
101,100 Nokia Oyj** ............................................ 1,603
95,500 Stora Enso Oyj - R Shares .............................. 1,262
62,000 UPM-Kymmene Oyj ........................................ 1,229
-----------
4,094
-----------
BELGIUM - 0.5%
31,200 Fortis ................................................. 862
63,600 SES GLOBAL, FDR ........................................ 850
42,400 UCB Group SA ........................................... 2,050
-----------
3,762
-----------
ITALY - 0.5%
145,250 Eni SpA ................................................ 3,647
-----------
TAIWAN - 0.5% ****
410,188 Taiwan Semiconductor Manufacturing
Company Ltd., Sponsored ADR .......................... 3,532
-----------
AUSTRIA - 0.4%
23,600 Erste Bank der oesterreichischen
Sparkassen AG** ...................................... 1,139
7,800 Raiffeisen International Bank Holding AG+............... 401
58,808 Telekom Austria AG ..................................... 1,127
-----------
2,667
-----------
IRELAND - 0.3%
93,268 CRH PLC ................................................ 2,310
-----------
SOUTH AFRICA - 0.3%
98,000 Sasol Ltd. ............................................. 2,301
-----------
NORWAY - 0.3%
127,700 DnB Holding ASA** ...................................... 1,213
53,700 Norske Skogindustrier ASA**............................. 936
-----------
2,149
-----------
INDIA - 0.2%
24,000 Infosys Technologies Ltd.,
Sponsored ADR** ...................................... 1,421
-----------
BRAZIL - 0.2%
43,591 Companhia Vale do Rio Doce,ADR ......................... 1,175
-----------
PORTUGAL - 0.2%
100,000 Portugal Telecom,SGPS, SA .............................. 1,094
-----------
UNITED STATES - 0.1%
60,197 News Corporation (F), CDI .............................. 910
-----------
RUSSIA - 0.0% +++
21,900 YUKOS,ADR+** .......................................... 55
-----------
Total Common Stocks
(Cost $573,872) ...................................... 660,239
-----------
CONVERTIBLE PREFERRED STOCKS - 0.5%
JAPAN - 0.5% ****
69,000,000 Sumitomo Mitsui Finance Group Inc. (F),
Conv. Pfd., 2.250% due 07/11/2005 .................... 1,419
99,000,000 Sumitomo Mitsui Finance Group Inc. (F),
Conv. Pfd., 2.250% due 07/11/2005++................... 2,035
-----------
Total Convertible Preferred Stocks
(Cost $1,879) ........................................ 3,454
-----------
PREFERRED STOCK - 0.0%+++
(Cost $51)
SOUTH KOREA - 0.0% +++****
900 Samsung Electronics Company Ltd. ....................... 269
-----------
See Notes to Financial Statements.
44
Portfolio of Investments (continued)
INTERNATIONAL GROWTH FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000S) (000s)
- --------- ----------------
CONVERTIBLE BONDS - 0.1%
(Cost $630)
SWITZERLAND - 0.1%
$ 826 Credit Suisse Group Financial, Conv. Jr. Bond,
6.000% due 12/23/2005 ................................ $ 961
----------------
REPURCHASE AGREEMENT - 4.4%
(Cost $30,246)
30,246 Agreement with Morgan Stanley, 2.850% dated
04/29/2005, to be repurchased at
$30,253,000 on 05/02/2005 (Collateralized
by U.S. Treasury Note, 2.000% due
07/15/2014, market value $31,230,000) ................ 30,246
----------------
SHORT-TERM INVESTMENT - 13.8%
(Cost $95,791)
95,791 Mellon GSL DBT II Collateral Fund++++ ................. 95,791
----------------
TOTAL INVESTMENTS (Cost $702,469*) ............................................. 113.9% 790,960
OTHER ASSETS (LIABILITIES) (NET) ............................................... (13.9) (96,642)
----- ----------------
NET ASSETS ..................................................................... 100.0% $ 694,318
===== ================
- ---------------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2005, and have an
aggregate market value of $91,230,000, representing 13.1% of the total net
assets of the Fund (Collateral Value $95,791,000).
*** Value of security is $0.
**** Investments in the areas of the Pacific Rim at April 30, 2005 are 30.7% of
the total net assets of the Fund.
+ Non-income producing security.
++ Security acquired in a transaction exempt from registration under Rule
144A of the Securities Act of 1933, as amended.
+++ Amount represents less than 0.1% of the total net assets.
++++ Represents investment purchased with cash collateral for securities
loaned.
++ Represents fair value as determined in good faith under the direction of
the Board of Trustees.
See Notes to Financial Statements.
45
Portfolio of Investments (continued)
INTERNATIONAL GROWTH FUND
April 30, 2005 (unaudited)
SCHEDULE OF FORWARD FOREIGN CURRENCY CONTRACTS
FORWARD FOREIGN CURRENCY CONTRACTS TO BUY
CONTRACTS TO RECEIVE
(000s)
-------------------------------------------- NET
UNREALIZED
IN APPRECIATION/
EXPIRATION LOCAL VALUE IN EXCHANGE (DEPRECIATION)
DATE CURRENCY U.S. $ FOR U.S. $ OF CONTRACTS
- ---------- -------------------- -------- ---------- ------------
05/02/2005 EUR 1,048 1,348 1,355 $ (7)
05/02/2005 JPY 70,762 675 668 7
05/03/2005 EUR 421 542 543 (1)
05/03/2005 HKD 141 18 18 -- ***
05/03/2005 ZAR 173 29 29 -- ***
05/04/2005 EUR 136 174 174 -- ***
05/06/2005 JPY 57,621 550 545 5
05/06/2005 ZAR 850 140 140 -- ***
05/09/2005 JPY 71,349 680 673 7
06/27/2005 EUR 777 1,002 1,005 (3)
06/30/2005 GBP 3,170 6,027 6,019 8
07/13/2005 EUR 863 1,113 1,129 (16)
----------
$ -- ***
----------
FORWARD FOREIGN CURRENCY CONTRACTS TO SELL
CONTRACTS TO DELIVER
(000s) NET
---------------------------------------------- UNREALIZED
IN APPRECIATION/
EXPIRATION LOCAL VALUE IN EXCHANGE (DEPRECIATION)
DATE CURRENCY U.S. $ FOR U.S. $ OF CONTRACTS
- ---------- -------------------- -------- ---------- -------------
05/17/2005 CHF 1,712 1,434 1,434 $ -- ***
05/24/2005 CHF 6,738 5,646 5,843 197
06/27/2005 EUR 1,555 2,004 2,106 102
06/30/2005 CHF 4,244 3,558 3,736 178
06/30/2005 EUR 1,678 2,163 2,282 119
07/07/2005 CHF 1,755 1,473 1,461 (12)
07/07/2005 EUR 2,820 3,637 3,631 (6)
07/07/2005 JPY 396,884 3,809 3,688 (121)
07/13/2005 ZAR 6,947 1,131 1,129 (2)
07/20/2005 JPY 383,806 3,688 3,591 (97)
07/29/2005 CAD 4,582 3,646 3,663 17
-----------
$ 375
-----------
Net Unrealized Appreciation of Forward
Foreign Currency Contracts ................................... $ 375
===========
- ------------
*** Amount represents less than $500.
AS OF APRIL 30, 2005, SECTOR DIVERSIFICATION IS AS FOLLOWS:
% OF VALUE
SECTOR DIVERSIFICATION NET ASSETS (000s)
---------------------- ---------- ------------
COMMON STOCKS:
Banks ............................................... 16.3% $ 113,452
Telecommunication Services .......................... 11.3 78,111
Pharmaceuticals & Biotechnology ..................... 9.2 63,933
Materials ........................................... 8.5 58,747
Food, Beverage & Tobacco ............................ 5.1 35,554
Energy .............................................. 5.0 34,922
Insurance ........................................... 4.5 31,117
Capital Goods ....................................... 4.4 30,339
Automobiles & Components ............................ 3.8 26,248
Semiconductors & Semiconductor Equipment ............ 3.8 26,234
Media ............................................... 3.2 22,491
Retailing ........................................... 2.4 16,765
Diversified Financials .............................. 2.4 16,542
Utilities ........................................... 2.3 16,013
Consumer Durables & Apparel ......................... 2.2 15,370
Real Estate Investment Trusts (REITs) ............... 1.9 13,182
Commercial Services & Supplies ...................... 1.6 11,016
Electronic Equipment & Instruments .................. 1.2 8,661
Transportation ...................................... 1.1 7,513
Other ............................................... 4.9 34,029
------- ------------
TOTAL COMMON STOCKS ................................. 95.1 660,239
CONVERTIBLE PREFERRED STOCKS ........................ 0.5 3,454
PREFERRED STOCK ..................................... 0.0 **** 269
CONVERTIBLE BONDS ................................... 0.1 961
REPURCHASE AGREEMENT ................................ 4.4 30,246
SHORT-TERM INVESTMENT ............................... 13.8 95,791
------- ------------
TOTAL INVESTMENTS ................................... 113.9 790,960
OTHER ASSETS AND LIABILITIES (NET) .................. (13.9) (96,642)
------- ------------
NET ASSETS .......................................... 100.0% $ 694,318
======= ============
- ----------
**** Amount represents less than 0.1% of the total net assets.
GLOSSARY OF TERMS
ADR -- American Depositary Receipt
CAD -- Canadian Dollar
CDI -- CHESS Depositary Interest
CHF -- Swiss Franc
EUR -- EURO
(F) -- Foreign Shares
FDR -- Fiduciary Depositary Receipt
GBP -- Great Britain Pound Sterling
HKD -- Hong Kong Dollar
JPY -- Japanese Yen
ZAR -- South African Rand
See Notes to Financial Statements.
46
Portfolio of Investments
SHORT TERM INCOME FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ------------
CORPORATE BONDS AND NOTES - 57.2%
FINANCIAL SERVICES - 10.6%
$ 6,000 Berkshire Hathaway Inc., Note,
3.375% due 10/15/2008.......................... $ 5,822
CIT Group Inc., Sr. Note:
1,500 7.375% due 04/02/2007.......................... 1,587
2,000 7.625% due 08/16/2005.......................... 2,025
3,750 Countrywide Home Loans, Inc.,
Company Guarantee, Series K,
5.500% due 02/01/2007.......................... 3,829
2,500 Goldman Sachs Group, Inc., Note,
4.125% due 01/15/2008.......................... 2,496
Household Finance Corporation, Note:
3,500 5.750% due 01/30/2007.......................... 3,597
1,500 7.875% due 03/01/2007.......................... 1,597
3,500 Rollins Truck Leasing Corporation, Deb.,
8.375% due 02/15/2007.......................... 3,734
4,000 SLM Corporation, MTN,
4.000% due 01/15/2009.......................... 3,955
------------
28,642
------------
REAL ESTATE INVESTMENT TRUSTS/PROPERTY - 8.7%
4,000 CPG Partners LP, Note,
3.500% due 03/15/2009.......................... 3,827
4,250 Developers Diversified Realty Corporation,
Sr. Note,
6.625% due 01/15/2008.......................... 4,455
4,000 Duke-Weeks Realty Corporation, Note,
7.375% due 08/01/2007.......................... 4,261
3,750 EOP Operating LP, Note,
7.750% due 11/15/2007.......................... 4,043
3,500 Health Care Property Investors, Inc., Note,
6.875% due 06/08/2005.......................... 3,511
3,000 Nationwide Health Properties Inc., Note,
9.750% due 03/20/2008.......................... 3,343
------------
23,440
------------
BANKS - 7.9%
4,250 Capital One Bank, Sr. Note,
8.250% due 06/15/2005.......................... 4,273
5,750 Fifth Third Bank, Note,
2.700% due 01/30/2007.......................... 5,613
3,000 JPMorgan Chase & Company, Note,
5.350% due 03/01/2007.......................... 3,066
3,500 MBNA America Bank N.A., Note,
6.500% due 06/20/2006.......................... 3,596
5,000 U.S. Bank N.A., Note,
2.850% due 11/15/2006.......................... 4,923
------------
21,471
------------
GAMING - 4.0%
5,750 Carnival Corporation, Company Guarantee,
3.750% due 11/15/2007.......................... 5,684
5,000 Harrah's Operating Company, Inc., Company
Guarantee,
5.500% due 07/01/2010.......................... 5,118
------------
10,802
------------
UTILITIES - 3.8%
$ 4,000 Constellation Energy Group, Inc., Note,
6.350% due 04/01/2007.......................... $ 4,153
1,650 Pacific Gas & Electric Company, First
Mortgage,
3.600% due 03/01/2009.......................... 1,606
1,650 Sempra Energy, Note,
4.750% due 05/15/2009.......................... 1,654
2,750 Texas-New Mexico Power Company,
Sr. Note,
6.250% due 01/15/2009.......................... 2,891
------------
10,304
------------
HEALTH CARE - 3.6%
5,500 Amgen Inc., Sr. Note,
4.000% due 11/18/2009**........................ 5,416
4,000 Cardinal Health, Inc., Note,
6.250% due 07/15/2008.......................... 4,194
------------
9,610
------------
AUTO MANUFACTURING & PARTS - 3.4%
4,000 Ford Motor Credit Company, Note,
6.500% due 01/25/2007.......................... 4,001
5,000 Toyota Motor Credit Corporation, Note,
5.650% due 01/15/2007.......................... 5,138
------------
9,139
------------
TELECOMMUNICATIONS - 3.1%
3,250 Deutsche Telekom International Finance BV,
Company Guarantee,
8.250% due 06/15/2005.......................... 3,268
1,500 TELUS Corporation, Note,
7.500% due 06/01/2007.......................... 1,594
3,500 Verizon Global Funding Corporation, Note,
4.000% due 01/15/2008.......................... 3,479
------------
8,341
------------
CABLE TV - 3.0%
4,000 AOL Time Warner Inc., Note,
6.150% due 05/01/2007.......................... 4,146
4,000 Cox Enterprises, Inc., Note,
4.375% due 05/01/2008**........................ 3,967
------------
8,113
------------
CONSUMER PRODUCTS/SERVICES - 2.4%
3,500 PHH Corporation, Note,
6.000% due 03/01/2008.......................... 3,625
3,000 Sealed Air Corporation, Conv. Sr. Note,
3.000% due 06/30/2033**........................ 2,895
------------
6,520
------------
FOOD - 2.3%
2,000 ConAgra Inc., Sr. Note,
9.875% due 11/15/2005.......................... 2,059
4,000 Safeway Inc., Sr. Note,
6.150% due 03/01/2006.......................... 4,059
------------
6,118
------------
See Notes to Financial Statements.
47
Portfolio of Investments (continued)
SHORT TERM INCOME FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ------------
CORPORATE BONDS AND NOTES - (CONTINUED)
AIRLINES - 1.5%
$ 4,000 Southwest Airlines Company, Pass-through
Certificates,
5.496% due 11/01/2006.......................... $ 4,088
------------
PAPER/FOREST PRODUCTS - 1.3%
3,500 Weyerhaeuser Company, Note,
6.000% due 08/01/2006.......................... 3,592
------------
AEROSPACE/DEFENSE - 1.1%
1,000 Boeing Capital Corporation, Sr. Note,
5.650% due 05/15/2006.......................... 1,018
2,000 United Technologies Corporation, Note,
4.375% due 05/01/2010.......................... 1,999
------------
3,017
------------
RETAIL - 0.5%
1,500 CVS Corporation, Note,
4.000% due 09/15/2009.......................... 1,478
------------
Total Corporate Bonds and Notes
(Cost $154,198)................................ 154,675
------------
ASSET-BACKED SECURITIES (ABSs) - 5.2%
3,251 Atlantic City Electric Transition
Funding LLC, Series 2003-1, Class A1,
2.890% due 07/20/2011.......................... 3,165
5,000 Capital One Multi-Asset Execution Trust,
Series 2003-A6, Class A6,
2.950% due 08/17/2009.......................... 4,939
63 FFCA Secured Lending Corporation,
Series 1999-2, Class WA1A,
7.130% due 05/18/2026**........................ 64
120 Green Tree Financial Corporation,
Series 1995-6, Class B1,
7.700% due 09/15/2026.......................... 94
1,117 Residential Asset Mortgage Products, Inc.,
Series 2003-RS4, Class AI3,
2.742% due 11/25/2028.......................... 1,114
4,750 WFS Financial Owner Trust, Series 2004-3,
Class A4,
3.930% due 02/17/2012.......................... 4,706
------------
Total ABSs
(Cost $14,298)................................. 14,082
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 10.5%
Federal Home Loan Bank, Bond:
4,000 1.875% due 06/15/2006.......................... 3,922
4,000 2.500% due 12/15/2005.......................... 3,978
Federal Home Loan Mortgage Corporation:
3,500 Bond,
3.250% due 02/25/2008.......................... 3,429
2,000 Note,
4.250% due 06/15/2005.......................... 2,003
Federal National Mortgage Association:
Note:
$ 4,000 4.250% due 07/15/2007.......................... $ 4,030
3,000 5.500% due 02/15/2006.......................... 3,044
3,000 3.000% to 07/16/2006;
5.800% due 07/16/2013.......................... 2,967
5,000 Sub. Note,
4.000% due 09/02/2008.......................... 4,966
------------
Total U.S. Government Agency Obligations
(Cost $28,526)................................. 28,339
------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 1.9%
ADJUSTABLE RATE MORTGAGE-BACKED SECURITIES (ARMs) - 0.8%
88 Federal Home Loan Mortgage Corporation
(FHLMC),
3.742% due 11/01/2021+......................... 91
Federal National Mortgage Association
(FNMA):
37 3.789% due 01/01/2019+......................... 37
8 3.802% due 11/01/2022+......................... 8
19 4.000% due 11/01/2021+......................... 20
1,912 4.649% due 11/01/2032+......................... 1,939
63 4.755% due 11/01/2035+......................... 65
10 5.611% due 04/01/2019+......................... 10
------------
Total ARMs
(Cost $2,212).................................. 2,170
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) - 0.6%
1,457 6.000% due 04/01/2017-05/01/2017................. 1,511
31 9.500% due 08/01/2016............................ 34
------------
Total FHLMC
(Cost $1,514).................................. 1,545
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 0.4%
829 6.500% due 01/01/2012-01/01/2014................. 865
44 8.500% due 11/01/2017............................ 48
28 10.000% due 05/01/2022........................... 32
------------
Total FNMA
(Cost $903).................................... 945
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 0.1%
11 8.000% due 03/15/2012............................ 12
10 9.000% due 04/20/2025............................ 11
170 10.000% due 01/15/2019-02/15/2019................ 193
142 11.000% due 02/15/2010-08/15/2020................ 159
------------
Total GNMA
(Cost $360).................................... 375
------------
Total U.S. Government Agency
Mortgage-Backed Securities
(Cost $4,989).................................. 5,035
------------
See Notes to Financial Statements.
48
Portfolio of Investments (continued)
SHORT TERM INCOME FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS (CMOs) - 13.2%
$ 4,000 Banc of America Mortgage Securities, Inc.,
Pass-through Certificates, Series 2003-6,
Class 1A30,
4.750% due 08/25/2033.......................... $ 3,987
5,203 Cendant Mortgage Corporation, Series
2003-3P, Class A1,
5.500% due 04/25/2020**........................ 5,291
3,646 Credit Suisse First Boston Mortgage
Securities Corporation, Pass-through
Certificates, Series 2003-29, Class 4A1
6.000% due 12/25/2033.......................... 3,732
Federal Home Loan Mortgage Corporation:
5,000 Series 2442, Class PG,
6.000% due 06/15/2030.......................... 5,093
4,615 Series 2552, Class KB,
4.250% due 06/15/2027.......................... 4,610
2,465 Series 2575, Class LM,
4.500% due 05/15/2032.......................... 2,472
2,450 Federal National Mortgage Association,
Series 2002-58, Class HB,
5.500% due 11/25/2015.......................... 2,475
3,459 Government National Mortgage Association,
Series 2002-70, Class PA,
4.500% due 08/20/2032.......................... 3,450
4,587 GSR Mortgage Loan Trust, Pass-through
Certificates,
Series 2005-1F, Class 2A1,
6.000% due 02/25/2035.......................... 4,715
------------
Total CMOs
(Cost $36,091)................................. 35,825
------------
U.S. TREASURY NOTES - 4.3%
6,000 2.000% due 05/15/2006............................ 5,916
6,000 2.625% due 03/15/2009............................ 5,747
------------
Total U.S. Treasury Notes
(Cost $11,670)................................. 11,663
------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) - 0.5%
(Cost $1,355)
1,355 GMAC Commercial Mortgage
Securities Inc., Series 1999-CTL1,
Class A,
7.150% due 12/15/2016**........................ 1,406
------------
REPURCHASE AGREEMENT - 7.8%
(Cost $21,066)
$ 21,066 Agreement with Morgan Stanley,
2.850% dated 04/29/2005, to be repurchased
at $21,071,000 on 05/02/2005
(Collateralized by U.S. Treasury Note,
2.000% due 07/15/2014, market value
$21,752,000)................................... $ 21,066
------------
TOTAL INVESTMENTS++ (Cost $272,193*)....................... 100.6% 272,091
OTHER ASSETS (LIABILITIES) (NET)........................... (0.6) (1,582)
----- ------------
NET ASSETS................................................. 100.0% $ 270,509
===== ============
- ----------
* Aggregate cost for federal tax purposes.
** Security acquired in a transaction exempt from registration under Rule 144A
of the Securities Act of 1933, as amended.
+ Variable rate security. The interest rate shown reflects the rate in effect
at April 30, 2005.
++ All securities segregated as collateral for futures contracts.
UNREALIZED
NUMBER OF VALUE DEPRECIATION
CONTRACTS (000s) (000s)
- --------- -------- ------------
FUTURES CONTRACTS-SHORT POSITION
100 U.S. 5 Year Treasury Note,
June 2005................... $ 10,845 $ (82)
============
GLOSSARY OF TERMS
MTN --Medium Term Note
See Notes to Financial Statements.
49
Portfolio of Investments
U.S. GOVERNMENT SECURITIES FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ---------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 69.8%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) - 30.9%
$ 17,784 4.000% due 08/01/2018............................................. $ 17,296
63,289 4.500% due 04/01/2018-08/01/2033.................................. 62,491
143,438 5.000% due 04/01/2018-02/01/2035.................................. 142,555
176,387 5.500% due 11/01/2018-11/01/2034.................................. 178,976
76,721 6.000% due 04/01/2017-02/01/2035.................................. 78,975
36,837 6.500% due 02/01/2011-01/01/2032.................................. 38,451
10,905 7.000% due 07/01/2024-04/01/2032.................................. 11,548
5,075 7.500% due 12/01/2006-02/01/2031.................................. 5,358
293 8.000% due 12/01/2030............................................. 320
594 8.500% due 04/01/2019-07/01/2029.................................. 641
53 8.750% due 01/01/2013............................................. 55
117 9.000% due 12/01/2008-08/01/2022.................................. 126
85 9.500% due 06/01/2016-04/01/2017.................................. 93
---------
Total FHLMC
(Cost $536,823)................................................. 536,885
---------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 30.3%
16,512 4.500% due 12/01/2018............................................. 16,382
129,835 5.000% due 04/01/2018-06/01/2034.................................. 130,111
237,382 5.500% due 02/01/2009-03/01/2035**................................ 240,395
65,303 6.000% due 12/01/2016-09/01/2034.................................. 67,279
57,956 6.500% due 09/01/2024-07/01/2034.................................. 60,444
8,690 7.000% due 06/01/2010-07/01/2032.................................. 9,185
2,596 7.500% due 12/01/2024-02/01/2030.................................. 2,795
364 8.000% due 05/01/2022-01/01/2025.................................. 383
54 8.500% due 02/01/2023-09/01/2025.................................. 57
511 9.000% due 03/01/2017-09/01/2030.................................. 568
---------
Total FNMA
(Cost $529,129)................................................. 527,599
---------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 8.6%
52,823 5.500% due 07/20/2033-03/20/2034.................................. 53,744
65,424 6.000% due 04/20/2026-08/15/2034.................................. 67,643
18,076 6.500% due 03/15/2024-05/20/2034.................................. 18,888
216 6.800% due 04/20/2025............................................. 228
3,573 7.000% due 07/15/2008-06/20/2031.................................. 3,789
2,903 7.500% due 03/15/2024-11/15/2029.................................. 3,121
121 7.750% due 12/15/2029............................................. 130
678 8.000% due 04/15/2022-06/20/2030.................................. 733
611 9.000% due 11/15/2021............................................. 671
1,234 9.500% due 04/15/2016-08/15/2021.................................. 1,371
12 13.500% due 09/15/2014-12/15/2014.................................. 14
---------
Total GNMA
(Cost $149,480)................................................. 150,332
---------
ADJUSTABLE RATE MORTGAGE-BACKED SECURITIES
(ARM) - 0.0% +++
(Cost $164)
164 Federal National Mortgage Association,
5.054% due 03/01/2028+.......................................... 169
---------
Total U.S. Government Agency
Mortgage-Backed Securities
(Cost $1,215,596)............................................... 1,214,985
` ---------
COLLATERALIZED MORTGAGE OBLIGATIONS
(CMOs) - 16.5%
Banc of America Mortgage Securities, Inc.,
Pass-through Certificates:
21,500 Series 2003-6, Class 1A30,
4.750% due 08/25/2033........................................... 21,427
17,206 Series 2004-4, Class 2A1,
5.500% due 05/25/2034........................................... 17,381
9,697 Countrywide Alternative Loan Trust,
Series 2003-13T1, Class A1,
4.000% due 08/25/2033........................................... 9,556
Countrywide Home Loans:
18,712 Series 2003-50, Class A1,
5.000% due 11/25/2018........................................... 18,753
21,500 Series 2004-4, Class A5,
5.250% due 05/25/2034........................................... 21,796
Credit Suisse First Boston Mortgage Securities
Corporation, Pass-through Certificates:
20,521 Series 2003-11, Class 1A3,
4.500% due 06/25/2033........................................... 20,557
12,340 Series 2003-29, Class 4A1,
6.000% due 12/25/2033........................................... 12,632
13,875 Series 2003-8, Class 1A1,
5.750% due 04/25/2033........................................... 14,081
Federal Home Loan Mortgage Corporation:
260 Series 1049, Class F,
3.900% due 02/15/2021++......................................... 260
923 Series 1981, Class C,
6.500% due 08/15/2027........................................... 951
10,000 Series 2435, Class GE,
6.500% due 06/15/2031........................................... 10,299
5,500 Series 2442, Class PG,
6.000% due 06/15/2030........................................... 5,602
24,000 Series 2449, Class ND,
6.500% due 05/15/2030........................................... 24,634
12,122 Series 2481, Class VC,
6.000% due 06/15/2017........................................... 12,549
9,000 Series 2551, Class QK,
5.500% due 01/15/2033........................................... 9,213
8,380 Series 2575, Class LM,
4.500% due 05/15/2032........................................... 8,404
Federal National Mortgage Association:
7,000 Grantor Trust, Series 2000-T5, Class B,
7.300% due 05/25/2010........................................... 7,924
15,127 Series 2002-16, Class TM,
7.000% due 04/25/2032........................................... 15,794
656 Trust 259 STRIP,
7.000% due 04/01/2024........................................... 132
Federal National Mortgage Association,
REMIC, Pass-through Certificates:
162 Series 1990-49, Class G,
9.000% due 05/25/2020........................................... 174
143 Series 1993-162, Class E,
6.000% due 08/25/2023........................................... 144
141 Series 1997-32, Class FA,
3.631% due 04/25/2027++......................................... 143
See Notes to Financial Statements.
50
Portfolio of Investments (continued)
U.S. GOVERNMENT SECURITIES FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ----------
COLLATERALIZED MORTGAGE OBLIGATIONS
(CMOs) - (CONTINUED)
GSR Mortgage Loan Trust, Pass-through
Certificates:
$ 17,669 Series 2003-4F, Class 2A3,
5.000% due 05/25/2033.......................................... $ 17,804
20,181 Series 2005-1F, Class 2A1,
6.000% due 02/25/2035.......................................... 20,747
88 L.F. Rothschild Mortgage Trust, Series 3,
Class Z,
9.950% due 09/01/2017.......................................... 95
17,000 Residential Funding Mortgage Security,
Series 2003-S20, Class 1A4,
5.500% due 12/25/2033.......................................... 17,011
----------
Total CMOs
(Cost $288,228)................................................ 288,063
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 4.5%
10,000 Federal Home Loan Bank, Bond,
2.875% due 09/15/2006.......................................... 9,890
10,000 Federal Home Loan Mortgage Corporation,
Sub. Note,
5.875% due 03/21/2011.......................................... 10,681
Federal National Mortgage Association:
10,000 Bond,
3.250% due 01/15/2008.......................................... 9,813
1,250 Deb.,
6.210% due 08/06/2038.......................................... 1,507
Note:
7,500 6.000% due 05/15/2008.......................................... 7,922
20,000 6.000% due 02/03/2020.......................................... 20,080
18,000 3.000% to 07/16/2006;
5.800% due 07/16/2013.......................................... 17,801
----------
Total U.S. Government Agency Obligations
(Cost $76,247)................................................. 77,694
----------
U.S. TREASURY NOTES - 5.7%
15,000 3.000% due 11/15/2007............................................ 14,755
10,000 3.250% due 08/15/2007............................................ 9,913
25,000 3.500% due 12/15/2009............................................ 24,608
17,000 4.000% due 02/15/2014............................................ 16,807
18,000 4.250% due 11/15/2013............................................ 18,136
15,000 4.250% due 08/15/2014............................................ 15,068
----------
Total U.S. Treasury Notes
(Cost $100,194)................................................ 99,287
----------
REPURCHASE AGREEMENT - 4.6%
(Cost $80,061)
80,061 Agreement with Morgan Stanley,
2.850% dated 04/29/2005, to be
repurchased at $80,080,000 on
05/02/2005 (Collateralized by U.S.
Treasury Note, 2.000% due
07/15/2014, market value
$82,667,000)................................................... 80,061
----------
TOTAL INVESTMENTS (Cost $1,760,326*)................................. 101.1% 1,760,090
OTHER ASSETS (LIABILITIES) (NET)..................................... (1.1) (19,828)
----------
NET ASSETS........................................................... 100.0% $1,740,262
===== ==========
- --------------
* Aggregate cost for federal tax purposes.
** A portion of these securities has been purchased on a when-issued basis.
+ Variable rate security. The interest rate shown reflects the rate in effect
at April 30, 2005.
++ Floating rate security whose interest rate is reset periodically based on an
index.
+++ Amount represents less than 0.1% of the total net assets.
GLOSSARY OF TERMS
REMIC -- Real Estate Mortgage Investment Conduit
STRIP -- Separate trading of registered interest and
principal of securities
See Notes to Financial Statements.
51
Portfolio of Investments
INCOME FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ---------
CORPORATE BONDS AND NOTES - 64.3%
FINANCIAL SERVICES/BANKS - 10.5%
$ 1,500 Aetna Inc., Company Guarantee,
7.625% due 08/15/2026........................................... $ 1,862
6,500 American General Finance, Inc.,
MTN, Series I,
4.625% due 05/15/2009........................................... 6,526
400 Banc One Corporation, Sub. Note,
10.000% due 08/15/2010.......................................... 496
5,000 Bank of America Corporation, Sub. Note,
7.800% due 02/15/2010........................................... 5,704
1,000 BankAmerica Corporation, Sub. Note,
6.625% due 08/01/2007........................................... 1,050
690 BB&T Corporation, Sub. Note,
7.250% due 06/15/2007........................................... 731
CIT Group Inc., Sr. Note.:
2,000 5.000% due 02/01/2015........................................... 1,984
2,500 7.750% due 04/02/2012........................................... 2,919
10,000 Citigroup Inc., Note,
6.000% due 02/21/2012........................................... 10,799
6,000 Farmers Insurance Exchange,
Note,
6.000% due 08/01/2014**......................................... 6,174
1,000 First Nationwide Bank, Sub. Deb.,
10.000% due 10/01/2006.......................................... 1,078
995 Fleet Financial Group, Inc., Sub. Deb.,
6.875% due 01/15/2028........................................... 1,177
10,000 Goldman Sachs Group, Inc., Note,
6.600% due 01/15/2012........................................... 11,008
7,500 Jefferies Group, Inc., Sr. Note,
7.750% due 03/15/2012........................................... 8,588
3,000 Legg Mason, Inc., Sr. Note,
6.750% due 07/02/2008 .......................................... 3,226
5,000 MBNA America Bank NA, Sub. Note,
7.125% due 11/15/2012........................................... 5,604
MBNA Corporation:
3,000 Note,
6.250% due 01/17/2007........................................... 3,095
2,000 Sr. Note,
7.500% due 03/15/2012........................................... 2,279
Merrill Lynch & Company Inc., Note:
5,000 6.000% due 02/17/2009........................................... 5,275
1,450 6.500% due 07/15/2018........................................... 1,628
2,000 6.750% due 06/01/2028........................................... 2,308
7,500 Morgan Stanley Dean Witter & Company, Note,
6.750% due 04/15/2011........................................... 8,294
670 NationsBank Corporation, Sub. Note,
6.800% due 03/15/2028........................................... 781
Paine Webber Group, Inc., Sr. Note:
415 7.390% due 10/16/2017........................................... 498
830 8.060% due 01/17/2017........................................... 1,058
500 PNC Institute Capital B, Company Guarantee,
8.315% due 05/15/2027**......................................... 559
9,000 SB Treasury Company LLC, Bond,
9.400% to 06/30/2008;
10.925% due 12/29/2049**........................................ 10,174
U.S. Bank NA, Sub. Note:
4,000 4.950% due 10/30/2014........................................... 4,042
5,000 6.375% due 08/01/2011........................................... 5,492
11,000 Wells Fargo & Company, Sub. Note,
4.625% due 04/15/2014........................................... 10,843
---------
125,252
---------
UTILITIES - 10.0%
5,000 Arizona Public Service Company, Note,
6.500% due 03/01/2012........................................... 5,511
5,000 Constellation Energy Group, Inc., Note,
7.000% due 04/01/2012........................................... 5,616
3,029 Covanta Energy Corporation, Sr. Sec. Note,
8.250% due 03/15/2011........................................... 2,757
10,000 Dominion Resources, Inc., Sr. Note,
5.000% due 03/15/2013........................................... 10,026
9,000 Illinois Power Company, First Mortgage,
7.500% due 06/15/2009........................................... 10,031
7,000 Metropolitan Edison Company, Sr. Note,
4.950% due 03/15/2013........................................... 6,987
NiSource Finance Corporation:
5,000 Bond,
5.400% due 07/15/2014........................................... 5,155
5,000 Sr. Note,
6.150% due 03/01/2013........................................... 5,421
3,000 Ohio Edison Company, Sr. Note,
5.450% due 05/01/2015........................................... 3,058
5,000 Ohio Power Company, Sr. Note,
5.500% due 02/15/2013........................................... 5,202
Oncor Electric Delivery Company, Deb.:
1,000 5.000% due 09/01/2007........................................... 1,012
8,000 7.000% due 09/01/2022........................................... 9,286
10,250 Pacific Gas & Electric Company, First
Mortgage,
4.200% due 03/01/2011........................................... 10,030
7,500 PacifiCorp, First Mortgage,
4.950% due 08/15/2014........................................... 7,567
5,000 PPL Energy Supply LLC, Sr. Note,
6.400% due 11/01/2011........................................... 5,434
2,000 Public Service Company of New Mexico,
Sr. Note,
4.400% due 09/15/2008........................................... 1,999
9,000 Sempra Energy, Note,
6.000% due 02/01/2013........................................... 9,554
6,500 Southwestern Electric Power Company, Note,
5.375% due 04/15/2015........................................... 6,649
6,845 Texas-New Mexico Power Company, Sr. Note,
6.250% due 01/15/2009........................................... 7,195
---------
118,490
---------
OIL & GAS - 6.2%
1,600 Burlington Resources Inc., Deb.,
9.125% due 10/01/2021........................................... 2,188
7,500 Consolidated Natural Gas Company, Sr. Note,
6.850% due 04/15/2011........................................... 8,358
10,000 El Paso Natural Gas Company, Deb.,
7.500% due 11/15/2026........................................... 10,354
See Notes to Financial Statements.
52
Portfolio of Investments (continued)
INCOME FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ---------
CORPORATE BONDS AND NOTES - (CONTINUED)
OIL & GAS - (CONTINUED)
$ 6,000 Enterprise Products Partners LP, Company
Guarantee,
6.375% due 02/01/2013........................................... $ 6,409
5,148 Express Pipeline LP, Sub. Note,
7.390% due 12/31/2017**......................................... 5,298
Hanover Compressor Company:
1,500 Conv. Sr. Note,
4.750% due 03/15/2008........................................... 1,447
3,000 Sr. Note,
8.625% due 12/15/2010........................................... 3,090
Petro-Canada:
8,500 Deb.,
9.250% due 10/15/2021........................................... 11,859
3,000 Note,
4.000% due 07/15/2013........................................... 2,814
8,000 Petrobras International Finance Company,
Sr. Note,
9.750% due 07/06/2011........................................... 9,280
Southern Natural Gas Company, Sr. Note:
4,000 8.000% due 03/01/2032........................................... 4,439
1,000 8.875% due 03/15/2010........................................... 1,092
2,000 Tennessee Gas Pipeline Company, Bond,
8.375% due 06/15/2032........................................... 2,304
4,500 Tesoro Petroleum Corporation, Note,
8.000% due 04/15/2008........................................... 4,736
---------
73,668
---------
CONSUMER PRODUCTS/SERVICES - 6.0%
Allied Waste North America, Inc., Sr. Note:
9,000 7.250% due 03/15/2015**......................................... 8,235
1,000 7.875% due 04/15/2013........................................... 977
4,000 Cendant Corporation, Note,
6.875% due 08/15/2006........................................... 4,137
5,000 ConAgra, Inc., Sr. Note,
7.125% due 10/01/2026........................................... 6,014
6,000 Corn Products International, Inc., Sr. Note,
8.450% due 08/15/2009........................................... 6,831
350 CPC International, Inc., Note,
6.150% due 01/15/2006........................................... 355
1,250 Great Lakes Dredge & Dock Company, Sr.
Sub. Note,
7.750% due 12/15/2013........................................... 991
Mattel, Inc., Note:
1,750 6.125% due 07/15/2005........................................... 1,758
1,000 7.300% due 06/13/2011........................................... 1,109
10,000 Reed Elsevier Capital Inc., Company
Guarantee,
6.750% due 08/01/2011........................................... 11,200
Royal Caribbean Cruises Ltd.:
2,000 Deb.,
7.250% due 03/15/2018........................................... 2,110
Sr. Note:
3,000 6.875% due 12/01/2013........................................... 3,128
1,250 8.000% due 05/15/2010........................................... 1,369
3,000 8.750% due 02/02/2011........................................... 3,375
4,000 Sealed Air Corporation:
Note,
5.625% due 07/15/2013**......................................... 4,079
7,250 Conv. Sr. Note,
3.000% due 06/30/2033**......................................... 6,996
USA Waste Services, Inc., Sr. Note:
1,000 7.000% due 07/15/2028........................................... 1,143
495 7.125% due 10/01/2007........................................... 526
Waste Management Inc.:
3,450 Company Guarantee,
6.875% due 05/15/2009........................................... 3,732
3,500 Sr. Note,
7.375% due 08/01/2010........................................... 3,922
---------
71,987
---------
REAL ESTATE INVESTMENT TRUSTS (REITs) - 6.0%
2,000 American Health Properties, Inc., Note,
7.500% due 01/15/2007........................................... 2,087
Arden Realty LP, Note:
3,000 5.200% due 09/01/2011........................................... 3,021
7,000 5.250% due 03/01/2015........................................... 6,895
10,000 Developers Diversified Realty Corporation,
Note,
4.625% due 08/01/2010........................................... 9,816
Franchise Finance Corporation:
3,000 MTN,
7.070% due 01/15/2008........................................... 3,240
1,100 Sr. Note,
7.875% due 11/30/2005........................................... 1,127
Health Care Property Investors, Inc.:
1,750 Note,
6.000% due 03/01/2015........................................... 1,831
1,000 6.875% due 06/08/2005........................................... 1,003
Sr. Note:
3,000 6.450% due 06/25/2012........................................... 3,234
1,000 6.500% due 02/15/2006........................................... 1,019
Health Care REIT, Inc.:
Sr. Note:
4,000 6.000% due 11/15/2013........................................... 4,078
5,000 7.500% due 08/15/2007........................................... 5,304
7,500 Healthcare Realty Trust, Inc., Sr. Note,
8.125% due 05/01/2011........................................... 8,719
Nationwide Health Properties Inc., Note:
1,500 7.060% due 12/05/2006........................................... 1,547
8,500 9.750% due 03/20/2008........................................... 9,472
9,000 Shurgard Storage Centers, Inc., Note,
5.875% due 03/15/2013........................................... 9,155
---------
71,548
---------
TRANSPORTATION/AUTO - 4.8%
Burlington Northern Santa Fe:
5,000 Deb.,
8.125% due 04/15/2020........................................... 6,442
1,500 Note,
8.750% due 02/25/2022........................................... 2,019
See Notes to Financial Statements.
53
Portfolio of Investments (continued)
INCOME FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ---------
CORPORATE BONDS AND NOTES - (CONTINUED)
TRANSPORTATION/AUTO - (CONTINUED)
$ 5,000 CSX Corporation, Deb.,
7.250% due 05/01/2027........................................... $ 6,011
1,273 CSX Transportation, Inc., Deb.,
9.750% due 06/15/2020........................................... 1,824
2,000 Ford Holdings Inc., Company Guarantee,
9.300% due 03/01/2030........................................... 1,917
Ford Motor Company, Deb.:
825 7.400% due 11/01/2046........................................... 616
3,750 8.900% due 01/15/2032........................................... 3,417
5,000 Ford Motor Credit Company, Sr. Note,
5.800% due 01/12/2009........................................... 4,656
8,000 General Motors Corporation, Deb.,
9.400% due 07/15/2021........................................... 6,727
Norfolk Southern Corporation:
1,757 Deb.,
9.750% due 06/15/2020........................................... 2,553
5,000 Sr. Note,
6.200% due 04/15/2009........................................... 5,310
6,500 Trailer Bridge, Inc., Sr. Sec. Note,
9.250% due 11/15/2011**......................................... 6,533
5,000 Union Pacific Corporation,
3.875% due 02/15/2009........................................... 4,896
United Air Lines Inc.:
5,000 Equipment Trust Certificates, (in default),
10.850% due 07/05/2014.......................................... 1,863
Pass-through Certificates, (in default):
3,000 9.080% due 10/26/2015........................................... 834
4,806 9.560% due 10/19/2018........................................... 1,903
---------
57,521
---------
HEALTH CARE - 4.8%
4,500 Aetna Inc., Sr. Note,
7.375% due 03/01/2006........................................... 4,624
1,500 American Home Products Corporation, Deb.,
7.250% due 03/01/2023........................................... 1,778
8,000 Athena Neurosciences Finance LLC,
Company Guarantee,
7.250% due 02/21/2008........................................... 7,020
10,000 Cardinal Health, Inc., Note,
6.750% due 02/15/2011........................................... 10,939
DVI, Inc., Sr. Note, (in default):
8,125 9.875% due 02/01/2004++......................................... 752
400 9.875% due 02/01/2004++......................................... 37
HCA Inc.:
3,000 Note,
5.250% due 11/06/2008........................................... 3,014
5,000 Sr. Note,
6.950% due 05/01/2012........................................... 5,237
4,850 HIH Capital Ltd., Conv. Note,
7.500% due 09/25/2006........................................... 4,850
7,350 IVAX Corporation, Conv. Sr. Sub. Note,
4.500% due 05/15/2008........................................... 7,221
12,000 Tenet Healthcare Corporation, Sr. Note,
6.375% due 12/01/2011........................................... 11,220
---------
56,692
---------
GAMING - 3.4%
5,000 Circus Circus Enterprise Inc., Deb.,
7.000% due 11/15/2036........................................... 5,250
3,500 Harrah's Operating Company Inc.,
Company Guarantee,
8.000% due 02/01/2011........................................... 3,999
3,000 Mandalay Resort Group, Sr. Sub. Note,
Series B,
10.250% due 08/01/2007.......................................... 3,307
12,000 Old Evangeline Downs LLC / Diamond Jo
LLC, Company Guarantee,
8.750% due 04/15/2012........................................... 11,640
Park Place Entertainment Corporation,
Sr. Note:
1,500 7.500% due 09/01/2009........................................... 1,642
5,000 8.500% due 11/15/2006........................................... 5,300
7,900 Riviera Holdings Corporation, Company
Guarantee,
11.000% due 06/15/2010.......................................... 8,730
---------
39,868
---------
TELECOMMUNICATIONS - 2.8%
5,000 Deutsche Telephone Finance, Bond,
8.500% due 06/15/2010........................................... 5,805
8,000 Qwest Corporation, Note,
9.125% due 03/15/2012**......................................... 8,520
9,000 TELUS Corporation, Note,
8.000% due 06/01/2011........................................... 10,408
8,000 Vodafone Group PLC, Note,
7.750% due 02/15/2010........................................... 9,117
---------
33,850
---------
MEDIA - 2.7%
Comcast Cable Communications Inc.:
550 Note,
6.200% due 11/15/2008........................................... 581
7,000 Sr. Note,
7.125% due 06/15/2013........................................... 7,983
7,500 Cox Communications, Inc., Note,
6.750% due 03/15/2011........................................... 8,112
2,500 FrontierVision Holdings LP,
Sr. Disc. Note, (in default),
11.875% due 09/15/2007.......................................... 3,388
2,000 FrontierVision Operating Partners LP,
Sr. Sub. Note, (in default),
11.000% due 10/15/2006.......................................... 2,650
2,000 Tele-Communications, Inc., Sr. Deb.,
7.875% due 08/01/2013........................................... 2,363
5,260 Time Warner Inc., Deb.,
9.150% due 02/01/2023........................................... 7,093
---------
32,170
---------
FOREIGN GOVERNMENT (U.S. DOLLAR DENOMINATED) - 1.6%
Federal Republic of Brazil:
2,750 Bond,
9.250% due 10/22/2010........................................... 2,977
1,500 Note,
8.750% due 02/04/2025........................................... 1,447
See Notes to Financial Statements.
54
Portfolio of Investments (continued)
INCOME FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ---------
CORPORATE BONDS AND NOTES - (CONTINUED)
FOREIGN GOVERNMENT (U.S. DOLLAR DENOMINATED) - (CONTINUED)
$ 10,000 Republic of Ecuador, Bond,
8.000% to 08/15/2005;
9.000% to 08/15/2006;
10.000% due 08/15/2030.......................................... $ 8,050
5,000 United Mexican States, Bond,
9.875% due 02/01/2010........................................... 5,978
---------
18,452
---------
INDUSTRIAL PRODUCTS - 1.4%
5,000 Champion International Corporation, Deb.,
7.200% due 11/01/2026........................................... 5,774
8,000 Noranda Inc., Note,
6.000% due 10/15/2015........................................... 8,119
Weyerhaeuser Company:
1,500 Deb.,
7.375% due 03/15/2032........................................... 1,636
1,500 Note,
6.750% due 03/15/2012........................................... 1,604
---------
17,133
---------
INDEX PRODUCT - 1.3%
16,250 Dow Jones CDX High Yield Series 4 Trust 1,
Pass-through Certificates,
8.250% due 06/29/2010**......................................... 15,712
---------
INFORMATION TECHNOLOGY - 1.2%
11,250 Conexant Systems Inc., Conv. Sub. Note,
4.000% due 02/01/2007........................................... 9,717
5,000 Extreme Networks, Inc., Conv. Sub. Note,
3.500% due 12/01/2006........................................... 4,900
---------
14,617
---------
RETAIL - 0.9%
5,000 Fred Meyer Inc., Company Guarantee,
7.450% due 03/01/2008........................................... 5,374
5,000 Safeway Inc., Note,
7.500% due 09/15/2009........................................... 5,489
---------
10,863
---------
AEROSPACE/DEFENSE - 0.7%
3,000 Lockheed Martin Corporation,
Company Guarantee,
7.750% due 05/01/2026........................................... 3,845
1,000 Loral Corporation, Deb.,
7.625% due 06/15/2025........................................... 1,250
2,750 Orbital Sciences Corporation, Sr. Note,
9.000% due 07/15/2011........................................... 2,998
---------
8,093
---------
Total Corporate Bonds and Notes
(Cost $743,853)................................................. 765,916
---------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 22.0%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 11.1%
44,460 4.000% due 09/01/2018-10/01/2018.................................. 43,219
12,674 5.000% due 01/01/2018-10/01/2032.................................. 12,719
57,398 5.500% due 03/01/2033-02/01/2035.................................. 58,045
1,949 6.000% due 04/01/2032............................................. 2,004
6,659 6.500% due 09/01/2028-05/01/2032.................................. 6,935
134 7.000% due 01/01/2030............................................. 142
190 7.451% due 06/01/2016............................................. 197
8,000 7.630% due 02/01/2010............................................. 8,929
---------
Total FNMA
(Cost $132,024)................................................. 132,190
---------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) - 10.3%
46,474 4.500% due 08/01/2033............................................. 44,950
51,682 5.000% due 04/01/2018-05/01/2033.................................. 51,829
14,372 5.500% due 11/01/2017-05/01/2031.................................. 14,703
4,792 6.000% due 03/01/2031-05/01/2032.................................. 4,925
4,986 6.500% due 01/01/2029-08/01/2029.................................. 5,199
1,264 7.000% due 01/01/2032............................................. 1,336
---------
Total FHLMC
(Cost $122,626)................................................. 122,942
---------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 0.6%
5,583 6.000% due 05/20/2032............................................. 5,758
789 7.000% due 06/20/2031............................................. 833
---------
Total GNMA
(Cost $6,341)................................................... 6,591
---------
Total U.S. Government Agency Mortgage-
Backed Securities
(Cost $260,991)................................................. 261,723
---------
U.S. TREASURY NOTES - 7.4%
20,000 2.625% due 03/15/2009............................................. 19,156
44,000 4.000% due 06/15/2009............................................. 44,286
25,000 4.250% due 08/15/2014............................................. 25,113
---------
Total U.S. Treasury Notes
(Cost $89,774).................................................. 88,555
---------
COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) - 0.1%
(Cost $1,151)
1,149 Reilly Mortgage FHA, Series 1982,
(Partial default),
7.430% due 08/01/2022........................................... 1,149++
---------
CONVERTIBLE PREFERRED STOCK - 0.3%
(Cost $5,100)
100,000 Ford Motor Company Capital Trust II,
Conv. Pfd.,
6.500% due 01/15/2032........................................... 3,895
---------
RIGHTS - 0.2%
(Cost $539)
153,563 Danielson Holding Corporation-Rights+............................. 1,884++
---------
See Notes to Financial Statements.
55
Portfolio of Investments (continued)
INCOME FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ----------
REPURCHASE AGREEMENT - 4.6%
(Cost $54,132)
$ 54,132 Agreement with Morgan Stanley,
2.850% dated 04/29/2005, to be
repurchased at $54,145,000 on
05/02/2005 (Collateralized by
U.S. Treasury Note, 2.000% due
07/15/2014, market value
$55,894,000)................................................... $ 54,132
----------
TOTAL INVESTMENTS (Cost $1,155,540*)................................. 98.9% 1,177,254
OTHER ASSETS (LIABILITIES) (NET)..................................... 1.1 13,642
----- ----------
NET ASSETS........................................................... 100.0% $1,190,896
===== ==========
- -------------
* Aggregate cost for federal tax purposes.
** Security acquired in a transaction exempt from registration under Rule 144A
of the Securities Act of 1933, as amended.
+ Non-income producing security.
++ Defaulted security is past maturity but continues to be valued in recognition
of future potential worth.
++ Represents fair value as determined in good faith under the direction of the
Board of Trustees.
GLOSSARY OF TERMS
FHA -- Federal Housing Authority
MTN -- Medium Term Note
See Notes to Financial Statements.
56
Portfolio of Investments
HIGH YIELD FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ---------
CORPORATE BONDS AND NOTES - 89.4%
HEALTH CARE - 16.7%
$ 21,500 Athena Neurosciences Finance LLC,
Company Guarantee,
7.250% due 02/21/2008........................................... $ 18,866
12,000 CV Therapeutics, Inc., Conv. Sr. Sub. Deb.,
2.000% due 05/16/2023........................................... 9,825
DVI, Inc., Sr. Note, (in default):
10,375 9.875% due 02/01/2004++......................................... 960
6,850 9.875% due 02/01/2004++......................................... 634
HEALTHSOUTH Corporation:
14,250 Note,
7.625% due 06/01/2012........................................... 13,751
5,000 Sr. Note,
8.500% due 02/01/2008........................................... 5,025
HIH Capital Ltd., Conv. Note:
3,500 7.500% due 09/25/2006........................................... 3,500
10,050 7.500% due 09/25/2006**......................................... 10,050
5,000 Inhale Therapeutic Systems, Inc., Conv. Sub.
Note,
5.000% due 02/08/2007........................................... 5,019
14,850 IVAX Corporation, Conv. Sr. Sub. Note,
4.500% due 05/15/2008........................................... 14,590
6,000 Omnicare, Inc., Sr. Sub. Note,
6.125% due 06/01/2013........................................... 5,850
17,000 Quintiles Transnational Corporation, Sr. Sub.
Note,
10.000% due 10/01/2013.......................................... 18,445
4,000 Sepracor Inc., Conv. Sub. Deb.,
5.000% due 02/15/2007........................................... 4,040
13,000 Tenet Healthcare Corporation, Sr. Note,
9.250% due 02/01/2015**......................................... 13,065
4,750 Vertex Pharmaceuticals Inc., Conv. Sub.
Note,
5.000% due 09/19/2007........................................... 4,346
---------
127,966
---------
TELECOMMUNICATIONS - 10.7%
16,250 Extreme Networks, Inc., Conv. Sub.
Note,
3.500% due 12/01/2006........................................... 15,925
17,500 Nortel Networks Corporation, Conv.
Company Guarantee,
4.250% due 09/01/2008........................................... 15,903
13,500 Qwest Corporation, Note,
9.125% due 03/15/2012**......................................... 14,378
17,710 TriQuint Semiconductor, Inc., Conv. Sub.
Note,
4.000% due 03/01/2007........................................... 16,979
16,500 Western Wireless Corporation, Sr. Note,
9.250% due 07/15/2013........................................... 18,934
---------
82,119
---------
INDEX PRODUCT - 9.1%
38,750 Dow Jones CDX High Yield Series 4 Trust 1,
Pass-through Certificates,
8.250% due 06/29/2010**......................................... 37,467
31,712 TRAINS (Targeted Return Index Securities)
Trust Series HY-2004-1, Grantor Trust,
8.218% due 08/01/2015**......................................... 32,283
---------
69,750
---------
OIL/ENERGY - 8.8%
El Paso Natural Gas:
12,500 Bond,
8.375% due 06/15/2032........................................... 14,270
2,750 Sr. Note,
7.625% due 08/01/2010........................................... 2,887
Hanover Compressor Company:
7,950 Conv. Sr. Note,
4.750% due 03/15/2008........................................... 7,672
10,250 Sr. Note,
8.625% due 12/15/2010........................................... 10,557
11,000 Petrobras International Finance Company,
Sr. Note,
9.750% due 07/06/2011........................................... 12,760
7,500 Southern Natural Gas Company, Sr. Note,
8.000% due 03/01/2032........................................... 8,322
10,000 Tesoro Petroleum Corporation, Sr. Sub. Note,
9.625% due 04/01/2012........................................... 11,100
---------
67,568
---------
GAMING - 7.5%
7,500 155E Tropicana Hooters LLC,
8.750% due 04/01/2012**......................................... 7,200
17,500 MGM Grand, Inc., Sr. Note,
6.000% due 10/01/2009........................................... 17,347
18,250 Old Evangeline Downs LLC / Diamond Jo
LLC, Company Guarantee,
8.750% due 04/15/2012........................................... 17,702
14,000 Riviera Holdings Corporation, Company
Guarantee,
11.000% due 06/15/2010.......................................... 15,470
---------
57,719
---------
INFORMATION TECHNOLOGY - 6.8%
14,000 BEA Systems Inc., Conv. Sub. Note,
4.000% due 12/15/2006........................................... 13,702
20,500 Conexant Systems Inc., Conv. Sub. Note,
4.000% due 02/01/2007........................................... 17,707
17,500 Electronic Data Systems Corporation,
Sr. Note, Series B,
6.500% due 08/01/2013........................................... 17,892
2,950 Komag, Inc., Conv. Sub. Note,
2.000% due 02/01/2024........................................... 3,149
---------
52,450
---------
FOREIGN GOVERNMENT (U.S. DOLLAR DENOMINATED) - 4.5%
Federal Republic of Brazil:
10,500 Bond,
9.250% due 10/22/2010........................................... 11,366
6,000 Note,
8.750% due 02/04/2025........................................... 5,790
See Notes to Financial Statements.
57
Portfolio of Investments (continued)
HIGH YIELD FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ---------
CORPORATE BONDS AND NOTES - (CONTINUED)
FOREIGN GOVERNMENT (U.S. DOLLAR DENOMINATED) - (CONTINUED)
$ 21,500 Republic of Ecuador, Bond,
8.000% to 08/15/2005;
9.000% to 08/15/2006;
10.000% due 08/15/2030.......................................... $ 17,308
---------
34,464
---------
CONSUMER PRODUCTS/LEISURE - 4.1%
16,000 Carmike Cinemas, Inc., Sr. Sub. Note,
7.500% due 02/15/2014........................................... 15,280
Royal Caribbean Cruises Ltd.:
3,000 Deb.,
7.250% due 03/15/2018........................................... 3,165
11,500 Sr. Note,
8.750% due 02/02/2011........................................... 12,937
---------
31,382
---------
AEROSPACE/DEFENSE - 3.8%
17,000 Orbital Sciences Corporation, Sr. Note,
9.000% due 07/15/2011........................................... 18,530
10,000 Primus International Inc., Sr. Note,
10.500% due 04/15/2009**........................................ 10,550
---------
29,080
---------
SERVICES - 3.7%
18,000 Allied Waste North America, Inc., Sr. Note,
7.875% due 04/15/2013........................................... 17,595
14,050 Great Lakes Dredge & Dock Company,
Sr. Sub. Note,
7.750% due 12/15/2013........................................... 11,135
---------
28,730
---------
CABLE TV - 3.1%
4,500 Century Communications Corporation,
Sr. Note, (in default),
8.750% due 10/01/2007........................................... 4,320
9,250 FrontierVision Holdings LP,
Sr. Disc. Note, (in default),
11.875% due 09/15/2007.......................................... 12,534
5,000 FrontierVision Operating Partners LP,
Sr. Sub. Note, (in default),
11.000% due 10/15/2006.......................................... 6,625
---------
23,479
---------
UTILITIES - 3.0%
2,589 Covanta Energy Corporation, Sr. Sec. Note,
8.250% due 03/15/2011........................................... 2,356
Reliant Energy Inc., Sr. Note:
4,000 6.750% due 12/15/2014........................................... 3,560
16,000 9.500% due 07/15/2013........................................... 16,680
---------
22,596
---------
TRANSPORTATION/AUTO - 2.9%
10,000 Continental Airlines, Inc., Conv. Sr. Note,
5.000% due 06/15/2023........................................... 8,362
Northwest Airlines, Inc., Pass-through Certificates:
8,733 Series 1999-2, Class B,
7.950% due 03/01/2015........................................... 6,985
8,480 Series 2001-1, Class B, 7.691% due 04/01/2017................... 6,722
---------
22,069
---------
PAPER/CONTAINERS - 1.6%
Jefferson Smurfit Corporation:
Company Guarantee:
7,000 7.500% due 06/01/2013........................................... 6,580
6,000 8.250% due 10/01/2012........................................... 5,910
---------
12,490
---------
RETAILING - 1.6%
12,000 Southern States Cooperative, Inc., Sr. Note,
10.500% due 11/01/2010** . . . . . . . . . . . 12,060
---------
MEDIA - 1.5%
XM Satellite Radio Holdings Inc., Sr. Note:
5,877 12.000% due 06/15/2010.......................................... 6,729
4,717 Zero coupon to 12/31/2005, 14.000% due 12/31/2009............... 4,812
---------
11,541
---------
FOOD - 0.0% +++
140 Dole Food Company, Sr. Note,
8.875% due 03/15/2011........................................... 149
---------
Total Corporate Bonds and Notes (Cost $678,330)................... 685,612
---------
UNITS
- -----
LIMITED PARTNERSHIP - 1.4%
(Cost $7,223)
8,027 TexCal, Series A, Common Units.................................... 10,435
------
SHARES
- ------
COMMON STOCKS - 6.8%
518,800 Health Care Property Investors, Inc. ............................. 13,302
454,500 Health Care REIT, Inc. ........................................... 15,226
180,460 ICO Global Communications Holdings Ltd.+ ......................... 526
188,430 Life Sciences Research, Inc.+ .................................... 2,431
985,100 Nationwide Health Properties Inc. ................................ 21,110
------
Total Common Stocks (Cost $37,676)................................ 52,595
------
CONVERTIBLE PREFERRED STOCK - 0.7%
(Cost $5,101)
104,800 Omnicare Capital Trust II, Series B, Conv. Pfd.
4.000% due 06/15/2033........................................... 5,240
------
RIGHTS - 0.2%
(Cost $461)
131,250 Danielson Holding Corporation-Rights+............................. 1,610++
------
See Notes to Financial Statements.
58
Portfolio of Investments (continued)
HIGH YIELD FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
- --------- ---------
WARRANTS - 0.0% +++
45,327 ICO Global Communications Holdings Ltd.,
Expires 05/16/2006+ ............................................ $ 2
5,000 Mikohn Gaming Corporation,
Expires 08/15/2008+** .......................................... 30
---------
Total Warrants
(Cost $12)...................................................... 32
---------
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- ---------
REPURCHASE AGREEMENT - 0.1%
(Cost $1,035)
$ 1,035 Agreement with Morgan Stanley,
2.850% dated 04/29/2005, to be
repurchased at $1,035,000 on
05/02/2005 (Collateralized by
U.S. Treasury Note, 2.000% due
07/15/2014, market value
$1,069,000).................................................... 1,035
---------
TOTAL INVESTMENTS (Cost $729,838*)................................... 98.6% 756,559
OTHER ASSETS (LIABILITIES) (NET)..................................... 1.4 10,646
----- ---------
NET ASSETS........................................................... 100.0% $ 767,205
===== =========
- ------------
* Aggregate cost for federal tax purposes.
** Security acquired in a transaction exempt from registration under Rule 144A
of the Securities Act of 1933, as amended.
+ Non-income producing security.
++ Defaulted security is past maturity but continues to be valued in
recognition of future potential worth.
+++ Amount represents less than 0.1% of the total net assets.
++ Represents fair value as determined in good faith under the direction of the
Board of Trustees.
See Notes to Financial Statements.
59
Portfolio of Investments
TAX - EXEMPT BOND FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- -------
MUNICIPAL BONDS AND NOTES - 98.4%
ALASKA - 4.4%
$ 1,000 Alaska State Housing Finance Corporation,
Housing Revenue, Series A, (FGIC Insured),
5.250% due 12/01/2041 ........................................ $ 1,057
4,500 Alaska State International Airports, Airport
& Marina Revenue, Series B, (AMBAC
Insured),
5.250% due 10/01/2027 ........................................ 4,807
1,235 Anchorage, Electric Utilities, Power & Light
Revenue, Sr. Lien, (MBIA Insured),
6.500% due 12/01/2013 ........................................ 1,492
2,000 Anchorage, Ice Rink, Recreational Revenue,
6.375% due 01/01/2020 ........................................ 2,282
-------
9,638
-------
ARIZONA - 2.5%
2,000 Arizona Tourism & Sports Authority,
Recreational Revenue, (Multipurpose
Stadium Facility Project), Series A,
(MBIA Insured),
5.375% due 07/01/2019 ........................................ 2,216
3,000 Salt River Project,Agricultural Improvement
& Power District, Electric Systems
Revenue, Series A,
5.750% due 01/01/2009 ........................................ 3,292
-------
5,508
-------
CALIFORNIA - 10.6%
1,000 Alameda County, Fremont Unified School
District, GO, Series A, (FGIC Insured),
5.000% due 08/01/2025 ........................................ 1,054
California State Department of Water
Resources, Power Supply Revenue,
Series A:
1,000 6.000% due 05/01/2015 ........................................ 1,152
(AMBAC Insured):
2,000 5.375% due 05/01/2018 ........................................ 2,222
1,000 5.500% due 05/01/2016 ........................................ 1,126
3,000 (Inverse Floater), (MBIA-IBC Insured),
7.285% due 05/01/2011+** ..................................... 3,552
2,000 Center Unified School District, Capital
Appreciation, GO, Series C, (MBIA
Insured),
Zero coupon due 09/01/2018 ................................... 1,102
2,000 El Dorado Irrigation District, COP, Series A,
(FGIC Insured),
5.000% due 03/01/2021 ........................................ 2,124
2,000 Foothill Eastern Transportation Corridor
Agency, Capital Appreciation, Toll Road
Revenue, (MBIA Insured),
Zero coupon due 01/15/2018 ................................... 1,052
2,700 Jurupa, Unified School District, GO, (FGIC
Insured),
5.125% due 08/01/2022 ........................................ 2,903
2,000 Orange County, COP, Series A, (MBIA
Insured),
6.000% due 07/01/2026 ........................................ 2,106
830 Palmdale, COP, (Park Improvement &
Avenue S Construction Project), (MBIA
Insured),
5.250% due 09/01/2018 ........................................ 913
2,000 San Francisco City and County, International
Airports Commission, Airport Revenue,
Second Series, Issue 29B, (FGIC Insured),
5.125% due 05/01/2020 ........................................ 2,148
7,000 San Joaquin Hills, Transportation Corridor
Agency, Toll Road Revenue, Series A,
(MBIA Insured),
Zero coupon due 01/15/2034 ................................... 1,653
-------
23,107
-------
COLORADO - 0.8%
1,650 Lakewood, COP, (AMBAC Insured),
5.350% due 12/01/2017 ........................................ 1,805
-------
CONNECTICUT - 0.7%
1,500 Connecticut State Special Obligation Parking,
Airport & Marina Revenue, (Bradley
International Airport), Series A, AMT,
(ACA Insured),
6.600% due 07/01/2024 ........................................ 1,629
-------
DISTRICT OF COLUMBIA - 0.3%
500 District of Columbia, Water & Sewer
Authority, Public Utilities Revenue,
(FSA Insured),
5.500% due 10/01/2017 ........................................ 581
-------
FLORIDA - 6.6%
250 Bay County, Water Systems Revenue,
(AMBAC Insured),
5.700% due 09/01/2030 ........................................ 277
1,000 Escambia County, Health Facilities Authority,
Health Facilities Revenue, (Florida Health
Care Facilities Loan-VHA Program),
(AMBAC Insured),
5.950% due 07/01/2020 ........................................ 1,016
650 Escambia County, Utilities Authority, Utility
Systems Revenue, (FGIC Insured),
5.250% due 01/01/2029 ........................................ 688
900 Florida Housing Finance Agency, Housing
Revenue, (Spinnaker Cove Apartments
Project), Series G, AMT, (AMBAC Insured),
6.500% due 07/01/2036 ........................................ 931
800 Florida State Board of Education, Lottery
Revenue, Series A, (FGIC Insured),
5.250% due 07/01/2017 ........................................ 874
675 Florida State Municipal Power Agency, Power
& Light Revenue, (Stanton Project),
(FSA Insured),
5.500% due 10/01/2014 ........................................ 760
1,000 Hillsborough County, Port District Revenue,
(Tampa Port Authority Project), Series A,
AMT, (MBIA Insured),
5.375% due 06/01/2027 ........................................ 1,067
100 Manatee County, Housing Finance Authority,
SFMR, Series 94-4, AMT, (GNMA/FNMA
Collateral),
6.875% due 11/01/2026 ........................................ 102
500 Orange County, Housing Finance Authority,
MFHR, (Hands Inc. Project), Series A,
7.000% due 10/01/2025** ...................................... 534
5,000 Orlando, Utilities Commission, Water &
Electric Revenue,
6.000% due 10/01/2010 ........................................ 5,693
See Notes to Financial Statements.
60
Portfolio of Investments (continued)
TAX - EXEMPT BOND FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- -------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
FLORIDA - (CONTINUED)
$ 1,300 Osceola County, School Board, COP, Series A,
(AMBAC Insured),
5.125% due 06/01/2022 ........................................ $ 1,406
900 Pasco County, Solid Waste Disposal &
Resource Recovery System, Resource
Recovery Revenue, AMT, (AMBAC
Insured),
6.000% due 04/01/2011 ........................................ 1,005
-------
14,353
-------
GEORGIA - 5.7%
5,000 Georgia State, GO, Series B,
6.300% due 03/01/2009 ........................................ 5,603
Monroe County, Development Authority, PCR,
(Oglethorpe Power Corporation Project),
Series A, (MBIA-IBC Insured):
2,500 6.700% due 01/01/2009 ........................................ 2,815
3,410 6.750% due 01/01/2010 ........................................ 3,932
-------
12,350
-------
HAWAII - 1.1%
Honolulu City and County, GO, Series A:
1,270 (Unrefunded Balance),
6.000% due 01/01/2012 ........................................ 1,461
730 ETM,
6.000% due 01/01/2012 ........................................ 847
-------
2,308
-------
IDAHO - 1.2%
2,000 Idaho Health Facilities Authority, Health Care
Revenue, (IHC Hospitals Inc. Project),
(Inverse Floater), ETM,
6.650% due 02/15/2021+** ..................................... 2,599
-------
ILLINOIS - 7.0%
5,000 Chicago, O'Hare International Airport,
Airport Revenue, (Inverse Floater), AMT,
(FSA Insured),
8.360% due 01/01/2020+** ..................................... 6,143
Chicago, O'Hare International Airport,
Special Facilities Revenue, Series B:
965 (Second Lien Passenger Facility),
(AMBAC Insured),
5.500% due 01/01/2017 ........................................ 1,060
1,000 (United Airlines Project), AMT, (in default),
6.100% due 11/01/2035 ........................................ 171
2,570 Cook County, Oak Lawn School District
No. 122, Capital Appreciation, GO,
(FGIC Insured),
Zero coupon due 12/01/2016 ................................... 1,543
Metropolitan Pier & Exposition Authority,
Capital Appreciation, Dedicated State Tax
Revenue, Series A, (FGIC Insured):
(Unrefunded Balance):
85 Zero coupon due 06/15/2008 ................................... 77
130 Zero coupon due 06/15/2009 ................................... 113
ETM:
5,055 Zero coupon due 06/15/2009 ................................... 4,406
815 Zero coupon due 06/15/2009 ................................... 710
1,000 Village of Pingree Grove, Special Service
Area Number One, Special Tax,
(Cambridge Lakes Project), Series 1,
5.250% due 03/01/2015 ........................................ 998
-------
15,221
-------
INDIANA - 3.1%
6,000 Indiana Municipal Power Agency, Power
Supply System Revenue, Series A, ETM,
(MBIA Insured),
6.125% due 01/01/2013 ........................................ 6,771
-------
LOUISIANA - 2.6%
2,000 Ernest N. Morial, New Orleans Exhibit
Hall Authority, Special Tax, Series A,
(AMBAC Insured),
5.000% due 07/15/2033 ........................................ 2,075
2,680 Lafayette, Utility Revenue, (MBIA Insured),
5.250% due 11/01/2023 ........................................ 2,927
1,500 Louisiana Public Facilities Authority,
Customer Receipts Revenue, Series B,
ETM,
Zero coupon due 12/01/2019 ................................... 755
-------
5,757
-------
MARYLAND - 1.5%
2,000 Baltimore, Port Facilities, Industrial Revenue,
(Consolidated Coal Sales Project), Series B,
6.500% due 10/01/2011 ........................................ 2,147
1,150 Maryland State Economic Development
Corporation, Student Housing Revenue,
(University of Maryland College Park
Project),
5.625% due 06/01/2035 ........................................ 1,193
-------
3,340
-------
MASSACHUSETTS - 2.4%
2,000 Massachusetts Bay Transportation Authority,
Sales Tax Revenue, Series A,
5.000% due 07/01/2035 ........................................ 2,062
1,000 Massachusetts State Development Finance
Agency, Revenue Bonds, (Hillcrest
Educational Centers Inc. Project),
6.375% due 07/01/2029 ........................................ 972
1,000 Massachusetts State Health & Educational
Facilities Authority, Health Care Revenue,
(Health Care System-Covenant Health),
6.000% due 07/01/2031 ........................................ 1,065
1,000 Massachusetts State Water Resources
Authority, Water Revenue, Series J,
(FSA Insured),
5.000% due 08/01/2032 ........................................ 1,041
-------
5,140
-------
MICHIGAN - 1.0%
1,000 Kent Hospital Finance Authority, Revenue
Bonds (Metropolitan Hospital Project),
Series A,
5.250% due 07/01/2030 ........................................ 1,008
See Notes to Financial Statements.
61
Portfolio of Investments (continued)
TAX - EXEMPT BOND FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- -------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
MICHIGAN - (CONTINUED)
$ 1,000 Michigan State Strategic Fund, Limited
Obligation Revenue, (Detroit Edison
Company Exempt Facilities Project),
Series C, AMT, (XLCA Insured),
5.450% due 12/15/2032 ........................................ $ 1,060
-------
2,068
-------
MISSOURI - 3.4%
2,250 Bi-State Development Agency of the Missouri-
Illinois Metropolitan District, Mass Transit
Sales Tax Revenue, (Metrolink Cross
County Extension Project), Series B,
(FSA Insured),
5.250% due 10/01/2019 ........................................ 2,480
1,000 Cape Girardeau County, Industrial
Development Authority, Health Care
Facilities Revenue, (Southeast Hospital
Association Project),
5.625% due 06/01/2027 ........................................ 1,030
600 Fenton, Tax Increment Revenue, (Gravois
Bluffs Improvement Project),
7.000% due 10/01/2021 ........................................ 649
1,000 Missouri State Health and Education
Facilities Authority, Education Facilities
Revenue, (University of Missouri-
Columbia Arena Project),
5.000% due 11/01/2018 ........................................ 1,075
St. Louis County, Pattonville School District
No. R-3, GO, (Missouri Direct Deposit
Program), (FGIC Insured):
1,000 5.750% due 03/01/2017 ........................................ 1,129
880 5.750% due 03/01/2018 ........................................ 993
-------
7,356
-------
NEBRASKA - 3.7%
7,000 Omaha Public Power District, Electric
Revenue, Series B, ETM,
6.150% due 02/01/2012 ........................................ 7,947
-------
NEVADA - 1.0%
1,000 Clark County, Airport Systems Subordinate
Lien Revenue, Series A-2, (FGIC Insured),
5.000% due 07/01/2036 ........................................ 1,039
1,000 Reno, Sales & Room Tax Revenue, Sr. Lien,
(ReTrac-Reno Transportation Rail Access
Corridor Project), (AMBAC Insured),
5.125% due 06/01/2037 ........................................ 1,043
-------
2,082
-------
NEW JERSEY - 3.5%
2,000 Bergen County, Improvement Authority,
School Improvement Revenue, (Wyckoff
Township Board of Education Project),
(County Guaranteed),
5.000% due 04/01/2032 ........................................ 2,114
1,000 New Jersey Economic Development Authority,
Cigarette Tax Revenue,
5.500% due 06/15/2031 ........................................ 1,046
1,000 New Jersey Economic Development Authority,
Economic Development Revenue,
(Kapkowski Road Landfill Project),
5.750% due 04/01/2031 ........................................ 1,002
1,340 New Jersey Educational Facilities Authority,
Government Fund Grant Revenue, (Higher
Education Capital Improvement Project),
Series A, (AMBAC Insured),
5.250% due 09/01/2020 ........................................ 1,457
2,000 New Jersey State Turnpike Authority, Transit
Revenue, Series C-1, (AMBAC Insured),
5.000% due 01/01/2035 ........................................ 2,074
-------
7,693
-------
NEW YORK - 4.7%
1,265 Metropolitan Transportation Authority,
Service Contract Revenue, (Transportation
Facilities Project), Series 7,
4.750% due 07/01/2019 ........................................ 1,376
1,500 Metropolitan Transportation Authority,
Transportation Revenue, Series A, (FGIC
Insured),
5.250% due 11/15/2031 ........................................ 1,612
1,000 New York City Industrial Development Agency,
Liberty Revenue Bonds, (7 World Trade
Center, LLC Project), Series A,
6.250% due 03/01/2015 ........................................ 1,022
2,500 New York City Municipal Water Finance
Authority, Water & Sewer Revenue, PA
1289 Project, (MBIA Insured),
6.814% due 06/15/2027+** ..................................... 2,799
1,000 New York State Dormitory Authority, College
& University Revenue, (State University
Educational Facilities Project), (MBIA
Insured),
6.000% due 05/15/2016 ........................................ 1,135
535 New York State Housing Finance Agency,
MFHR, (Secured Mortgage Program),
Series F, AMT,
6.625% due 08/15/2012 ........................................ 536
650 New York State Mortgage Agency, Homeowner
Mortgage Revenue, Series 82, AMT,
5.650% due 04/01/2030 ........................................ 669
1,000 New York State, GO, Series H,
5.750% due 03/15/2013 ........................................ 1,117
-------
10,266
-------
NORTH CAROLINA - 1.5%
1,000 Charlotte, COP, (Convention Facility Project),
Series A,
5.500% due 08/01/2019 ........................................ 1,111
2,000 North Carolina Municipal Power Agency
No. 1, Catawba Electric Revenue,
Series A, (MBIA Insured),
5.250% due 01/01/2018 ........................................ 2,183
-------
3,294
-------
OHIO - 1.0%
1,000 Cuyahoga County, Hospital Facilities
Revenue, (Canton Inc. Project),
7.500% due 01/01/2030 ........................................ 1,125
See Notes to Financial Statements.
62
Portfolio of Investments (continued)
TAX - EXEMPT BOND FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------- -------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
OHIO - (CONTINUED)
$ 1,000 Ohio State University, General Receipts
Revenue, Series A,
5.125% due 12/01/2031 ........................................ $ 1,053
-------
2,178
-------
OKLAHOMA - 0.7%
290 Oklahoma Housing & Finance Authority,
SFMR, Series B, AMT, (GNMA
Collateral),
7.997% due 08/01/2018 ........................................ 297
1,000 Tulsa County, Public Facilities Authority,
Capital Improvement Revenue,
(AMBAC Insured),
6.250% due 11/01/2022 ........................................ 1,141
-------
1,438
-------
OREGON - 2.5%
1,000 Oregon Health Sciences University, College
& University Revenue, Series A,
(MBIA Insured),
5.250% due 07/01/2022 ........................................ 1,094
1,000 Oregon State Department of Administrative
Services, COP, Series C, (MBIA Insured),
5.250% due 11/01/2018 ........................................ 1,091
2,000 Portland, Sewer System Revenue, Second
Lien, Series A, (FSA Insured),
5.250% due 06/01/2020 ........................................ 2,197
1,000 Portland, Tax Allocation Revenue,
(Downtown Waterfront Urban Renewal
& Redevelopment Project), Series A,
(AMBAC Insured),
5.750% due 06/15/2016 ........................................ 1,124
-------
5,506
-------
PENNSYLVANIA - 4.0%
Philadelphia, Gas Works Revenue,
(FSA Insured):
(1998 General Ordinance):
1,000 Fourth Series,
5.250% due 08/01/2020 ........................................ 1,084
2,500 Second Series,
5.250% due 07/01/2029 ........................................ 2,668
2,500 (Inverse Floater), Series 384,
7.445% due 07/01/2011+** ..................................... 2,950
820 Philadelphia, Parking Authority, Auto
Parking Revenue, Series A,
(AMBAC Insured),
5.250% due 02/15/2029 ........................................ 868
1,000 Philadelphia, Redevelopment Authority
Revenue, (Neighborhood Transformation
Project), Series A, (FGIC Insured),
5.500% due 04/15/2017 ........................................ 1,110
-------
8,680
-------
PUERTO RICO - 0.5%
1,000 Puerto Rico Municipal Finance Agency,
Revenue Bonds, Series A, (FSA Insured),
5.250% due 08/01/2021 ........................................ 1,093
-------
SOUTH CAROLINA - 1.6%
1,300 Chesterfield County, School District, GO,
(FSA Insured),
5.375% due 03/01/2018 ........................................ 1,429
955 Greenville, Waterworks System Revenue,
5.250% due 02/01/2019 ........................................ 1,047
1,000 South Carolina Jobs-Economic Development
Authority, IDR, (Electric & Gas Company
Project), Series A, (AMBAC Insured),
5.200% due 11/01/2027 ........................................ 1,072
-------
3,548
-------
SOUTH DAKOTA - 0.6%
1,250 South Dakota Health and Educational
Facilities Authority, Health Care Revenue,
(Sioux Valley Hospitals and Health
System), Series A,
5.250% due 11/01/2034 ........................................ 1,296
-------
TENNESSEE - 0.9%
1,000 Johnson City, Health & Educational Facility
Board, Hospital Revenue, (Mountain
States Health Care Facilities First
Mortgage Project), Series A,
7.500% due 07/01/2033 ........................................ 1,190
815 Tennessee Housing Development Agency,
Housing Revenue, (Homeownership
Program), Series 2A, AMT,
5.700% due 07/01/2031 ........................................ 847
-------
2,037
-------
TEXAS - 6.9%
1,500 Austin, Water & Wastewater System
Revenue, (MBIA Insured),
5.250% due 11/15/2019 ........................................ 1,642
1,000 Corpus Christi, GO, (FSA Insured),
5.750% due 03/01/2018 ........................................ 1,116
1,500 Dallas-Fort Worth International Airport
Board, Airport & Marina Revenue, Series A,
AMT, (FGIC Insured),
5.500% due 11/01/2031 ........................................ 1,587
2,000 Harris County, Houston Sports Authority,
Special Revenue, Jr. Lien, Series B,
(MBIA Insured),
5.250% due 11/15/2040 ........................................ 2,081
85 Houston, GO, (Public Improvement Project),
(FSA Insured), (Unrefunded Balance),
5.750% due 03/01/2015 ........................................ 95
1,000 Houston, Hotel Occupancy Tax & Special
Revenue, (Convention & Entertainment
Project), Series B, (AMBAC Insured),
5.750% due 09/01/2015 ........................................ 1,125
1,000 Lower Colorado River Authority, Transmission
Contract Revenue, (LCRA Transmission
Services Corporation Project), (FGIC
Insured),
5.000% due 05/15/2033 ........................................ 1,028
1,100 Metro Health Facilities Development
Corporation, Health Care Revenue,
(Wilson N. Jones Memorial Hospital
Project),
7.200% due 01/01/2021 ........................................ 1,123
See Notes to Financial Statements.
63
Portfolio of Investments (continued)
TAX - EXEMPT BOND FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- ---------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
TEXAS - (CONTINUED)
North Central, Health Facilities
Development Corporation Revenue:
$ 1,000 (Baylor Health Care System Project),
Series A,
5.125% due 05/15/2029................................ $ 1,029
1,000 (Children's Medical Center of Dallas
Project), (AMBAC Insured),
5.250% due 08/15/2032................................ 1,061
1,000 Texas Tech University System, Financing
System Revenue, Seventh Series,
(MBIA Insured),
5.000% due 08/15/2025................................ 1,048
2,000 University of Texas Financing System,
College & University Revenue, Series A,
5.250% due 08/15/2019................................ 2,194
---------
15,129
---------
WASHINGTON - 8.7%
2,500 Energy Northwest, Electric Revenue,
(Nuclear Project 3), Series A, (FSA
Insured),
5.500% due 07/01/2017................................ 2,768
5,000 Franklin County, Pasco School District No.1,
GO, (FSA Insured),
5.250% due 12/01/2019................................ 5,482
4,500 King County, Kent School District No. 415,
GO, Series C,
6.300% due 12/01/2008................................ 4,884
2,000 Seattle,Water System Revenue,
(MBIA Insured),
5.000% due 09/01/2034................................ 2,086
3,000 Washington State, GO, Series B & AT-7,
6.400% due 06/01/2017................................ 3,657
---------
18,877
---------
WEST VIRGINIA - 1.2%
2,500 Harrison County, County Community Solid
Waste Disposal Authority, IDR,
(Monongahela Power Company Project),
Series A, AMT, (MBIA-IBC Insured),
6.875% due 04/15/2022................................ 2,508
---------
WISCONSIN - 0.5%
Wisconsin State Health & Educational
Facilities Authority, Health Care
Revenue,
Series A:
600 (Beaver Dam Community Hospitals, Inc.
Project),
6.000% due 08/15/2019................................ 594
555 (Waukesha Memorial Hospital Project),
(AMBAC Insured),
7.125% due 08/15/2007................................ 557
---------
1,151
---------
Total Municipal Bonds and Notes
(Cost $197,405)..................................... 214,254
---------
SHORT-TERM MUNICIPAL BONDS - 0.3%
200 Pinellas County, Health Facilities
Authority,
Health Care Revenue, (Pooled Hospital
Loan Program), (AMBAC Insured),
3.050% due 12/01/2015++ ............................. 200
400 Pitkin County, Colorado, IDR, (Aspen Skiing
Company Project), Series A, (LOC:
JPMorgan Chase Bank),
3.050% due 04/01/2016++.............................. 400
---------
Total Short-Term Municipal Bonds
(Cost $600).......................................... 600
---------
TOTAL INVESTMENTS+++ (Cost $198,005*)...................... 98.7% 214,854
OTHER ASSETS (LIABILITIES) (NET)........................... 1.3 2,871
----- ---------
NET ASSETS................................................. 100.0% $ 217,725
===== =========
- --------------------
* Aggregate cost for federal tax purposes.
** Security deemed illiquid by the Portfolio Manager.
+ Variable rate security. The interest rate shown reflects the rate in
effect at April 30, 2005.
++ Variable rate securities payable upon demand with not more than five
business days notice, and secured by bank letters of credit or guarantees
by certain corporations. The interest rate shown reflects the rate in
effect at April 30, 2005.
+++ All securities segregated as collateral for futures contracts.
Tax-Exempt Bond Fund had the following industry concentrations greater than 10%
at April 30, 2005 (as a percentage of the total net assets of the Fund)
(unaudited):
Power 17.8%
General Obligation 16.1%
Transportation 14.7%
General Purpose 11.1%
Tax-Exempt Bond Fund had the following insurance concentrations greater than 10%
at April 30, 2005 (as a percentage of the total net assets of the Fund)
(unaudited):
MBIA 22.6%
FSA 14.6%
AMBAC 13.5%
FGIC 12.0%
UNREALIZED
NUMBER OF VALUE DEPRECIATION
CONTRACTS (000s) (000s)
- ----------------------------------------------------------- --------- ------------
FUTURES CONTRACTS-SHORT POSITION
63 U.S. 5 Year Treasury Note,
June 2005.................................... $ 18,654 $ (128)
14 U.S. 10 Year Treasury Note,
June 2005.................................... 17,239 (12)
-------
Net Unrealized Depreciation of
Futures Contracts............................ $ (140)
=======
GLOSSARY OF TERMS
ACA -- ACA Financial Guaranty Corporation
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Federal Guaranty Insurance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GO -- General Obligation
IBC -- Insured Bond Certificate
IDR -- Industrial Development Revenue
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
PCR -- Pollution Control Revenue
SFMR -- Single Family Mortgage Revenue
VHA -- Veterans Housing Authority
XLCA -- XL Capital Assurance Inc.
See Notes to Financial Statements.
64
Portfolio of Investments
CALIFORNIA MUNICIPAL FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ------------------------------------------------------------ -------
MUNICIPAL BONDS AND NOTES - 98.5%
CALIFORNIA - 98.3%
ABAG Financing Authority for Nonprofit
Corporations, COP:
$ 340 (Episcopal Homes Foundation),
5.000% due 07/01/2007........................ $ 349
(O'Connor Woods Obligation Group),
(ACA Insured):
700 5.400% due 11/01/2009........................ 728
2,530 5.700% due 11/01/2013........................ 2,726
1,240 ABAG Financing Authority for Nonprofit
Corporations, Revenue Bonds,
(California School of Mechanical Arts),
5.250% due 10/01/2026........................ 1,300
5,360 Alhambra, Improvement Board Act of 1915,
Special Tax Revenue, (Public Works
Assessment District No. 1), (MBIA Insured),
6.125% due 09/02/2018........................ 5,422
2,000 Anaheim, Public Financing Authority, Tax
Allocation Revenue, (Inverse Floater),
(MBIA Insured),
10.430% due 12/28/2018+...................... 2,427
2,210 Azusa, Community Facilities District No. 1,
Special Tax Revenue, (Mountain Cove),
Series A,
6.000% due 09/01/2026........................ 2,321
Baldwin Park, Public Financing Authority,
Lease Revenue, (Community Center Project),
(AMBAC Insured):
2,635 5.000% due 08/01/2027........................ 2,769
3,000 5.000% due 08/01/2034........................ 3,139
Barstow, Redevelopment Agency, Tax
Allocation Revenue,
(Central Redevelopment Project),
Series A, (MBIA Insured):
680 (Unrefunded Balance),
7.000% due 09/01/2014........................ 798
1,320 ETM,
7.000% due 09/01/2014........................ 1,563
2,000 Bay Area Government Association,
Tax Allocation Revenue,
(California Redevelopment Agency Pool),
Series A, (XLCA Insured),
5.250% due 09/01/2029........................ 2,134
3,155 Burbank,Waste Disposal Revenue, Series B,
(FSA Insured),
5.250% due 05/01/2024........................ 3,412
2,000 California Department of Veteran Affairs,
Home Purchase Revenue, Series A,
(AMBAC Insured),
5.400% due 12/01/2018........................ 2,071
California Educational Facilities Authority,
College & University Revenue:
5,000 (Pomona College), Series A,
5.000% due 07/01/2045........................ 5,233
1,000 (Pooled College & University), Series B,
6.625% due 06/01/2020........................ 1,106
1,000 California Educational Facilities Authority,
Student Loan Revenue, (California Loan
Program), Series A, AMT, (MBIA
Insured),
5.100% due 03/01/2014 ....................... 1,054
995 California Financing Authority for Resource
Efficiency, Multiple Utility Revenue, (First
Resource Efficiency Program), (AMBAC
Insured),
6.000% due 07/01/2017........................ 1,018
250 California Health Facilities Financing
Authority, Health Care Revenue,
Adventist Health System Project), Series A,
5.000% due 03/01/2028........................ 253
1,000 California Infrastructure & Economic
Development Bank, Health Care Revenue,
(The J. David Gladstone Institute Project),
5.500% due 10/01/2015........................ 1,089
2,500 California Pollution Control Financing
Authority, PCR,
(San Diego Gas and Electric Company),
Series A, AMT, (AMBAC Insured),
5.850% due 06/01/2021........................ 2,506
120 California Rural Home Mortgage Finance
Authority, SFMR, (Mortgage-Backed
Securities Program), Issue A, Series 2, AMT,
(GNMA/FHLMC Collateral),
7.950% due 12/01/2024........................ 121
6,320 California State Department of Transportation,
COP, Series A, (MBIA Insured),
5.250% due 03/01/2016........................ 6,698
California State Department of Water
Resources, Power Supply Revenue, Series A:
5,000 5.750% due 05/01/2017........................ 5,612
5,500 5.875% due 05/01/2016........................ 6,229
7,000 (MBIA-IBC Insured),
5.125% due 05/01/2018........................ 7,640
3,000 (XLCA Insured),
5.375% due 05/01/2017........................ 3,330
2,000 California State Department of Water
Resources, Water Revenue, Series W,
(FSA Insured),
5.000% due 12/01/2018........................ 2,159
8,000 California State Economic Recovery,
Sales Tax Revenue, Series A,
5.000% due 07/01/2016........................ 8,608
California State Public Works Board, Lease
Revenue:
1,500 (California Community Colleges), Series A,
5.250% due 12/01/2014........................ 1,577
3,000 (California State University), Series C,
5.400% due 10/01/2022........................ 3,153
1,980 (Department of Corrections - Kern County
at Delano II State Prison), Series C,
5.500% due 06/01/2023........................ 2,168
1,750 (Department of Corrections Program),
Series A, (MBIA-IBC Insured),
5.000% due 09/01/2018........................ 1,859
4,330 (Department of Corrections-Ten
Administrative Segregation Housing Units),
Series A, (AMBAC Insured),
5.250% due 03/01/2019........................ 4,663
See Notes to Financial Statements.
65
Portfolio of Investments (continued)
CALIFORNIA MUNICIPAL FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- -------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
CALIFORNIA- (CONTINUED)
(Department of Mental Health - Coalinga State
Hospital), Series A:
$ 3,000 5.000% due 06/01/2024........................ $ 3,139
1,750 5.000% due 06/01/2025........................ 1,851
4,200 (UC M.I.N.D. Institute), Series A,
5.000% due 04/01/2023........................ 4,383
California State, GO:
2,000 (CIFG-TCRS Insured),
5.000% due 10/01/2022........................ 2,106
4,430 (FGIC-TCRS Insured),
5.500% due 06/01/2025........................ 4,784
1,280 (Veterans),AMT,
5.700% due 12/01/2032........................ 1,321
3,050 (XLCA Insured),
6.750% due 08/01/2012........................ 3,676
2,815 California Statewide Communities
Development Authority, COP, (Cedars-Sinai
Medical Center), (MBIA-IBC Insured),
6.500% due 08/01/2012........................ 3,119
1,260 California Statewide Communities
Development Authority, Health Care
Revenue, (Daughters of Charity Health
System Project), Series A,
5.000% due 07/01/2039........................ 1,272
California Statewide Communities
Development Authority, MFHR, (Equity
Residential Housing):
1,000 Series B,
5.200% due 12/01/2029........................ 1,058
3,300 Series C,
5.200% due 06/15/2009........................ 3,493
1,000 Carson, Redevelopment Agency,
Tax Allocation Revenue, (Area No. 1
Project), (MBIA Insured),
5.500% due 10/01/2016........................ 1,148
3,195 Castaic Lake,Water Agency, COP, (1994
Refunding Project), Series A, (AMBAC
Insured),
5.000% due 08/01/2019........................ 3,446
3,000 Chula Vista, COP, (MBIA Insured),
5.000% due 08/01/2027........................ 3,147
350 Chula Vista, IDR, (San Diego Gas and
Electric Company), Series A,AMT,
4.900% due 03/01/2023........................ 353
1,825 Chula Vista, Public Financing Authority,
Special Tax Revenue, (Assessment Districts
Refinancing), Sr. Lien, Series A,
(FSA Insured),
4.700% due 09/02/2014........................ 1,964
2,665 Chula Vista, Redevelopment Agency, Tax
Allocation Revenue,
8.625% due 09/01/2024........................ 2,907
2,000 Coachella, Redevelopment Agency, Tax
Allocation Revenue, (Area No. 3 Project),
5.875% due 12/01/2028........................ 2,058
2,160 Contra Costa County, Public Financing
Authority, Lease Revenue, (Capital
Projects), Series B, (MBIA Insured),
5.250% due 06/01/2027........................ 2,301
5,000 Contra Costa, Community College District,
GO, (Election of 2002), (MBIA Insured),
5.000% due 08/01/2029........................ 5,274
Contra Costa,Water District Revenue,
Series K, (FSA Insured):
1,445 5.000% due 10/01/2017........................ 1,560
1,520 5.000% due 10/01/2018........................ 1,639
1,500 Culver City, Redevelopment Finance
Authority, Tax Allocation Revenue,
Series B,
6.250% due 11/01/2025........................ 1,524
1,665 Davis, Public Facilities Finance Authority
Local Agency, Special Tax Revenue,
(Mace Ranch Area), Series A,
6.600% due 09/01/2025........................ 1,748
1,215 Fairfield, Housing Authority, Mortgage
Revenue, (Creekside Estates Mobile Homes),
5.625% due 09/01/2023........................ 1,223
2,460 Folsom Cordova, Unified School District,
GO, (School Facilities Improvement
District No. 1), Series B, (MBIA Insured),
5.000% due 10/01/2022........................ 2,642
1,000 Fontana, Redevelopment Agency, Tax
Allocation Revenue, (Southwest Industrial
Park Project), (MBIA Insured),
5.200% due 09/01/2030........................ 1,058
Foothill Eastern Transportation Corridor
Agency, Toll Road Revenue:
9,000 Zero coupon due 01/15/2026................... 7,548
20,000 Zero coupon due 01/15/2030................... 4,697
10,000 Zero coupon due 01/15/2032................... 2,077
10,000 Zero coupon due 01/15/2033................... 1,952
10,000 Zero coupon due 01/15/2034................... 1,834
10,000 Zero coupon due 01/15/2036................... 1,622
10,000 Zero coupon due 01/15/2037................... 1,525
9,000 Zero coupon due 01/15/2038................... 1,291
2,000 Fresno, Joint Powers Financing Authority,
Lease Revenue, Series A, (FSA Insured),
5.750% due 06/01/2026........................ 2,222
1,000 Hi Desert, Members Health Care District,
Health Care Revenue,
5.500% due 10/01/2015........................ 999
3,000 Highland, Redevelopment Agency, Tax
Allocation Revenue, (Highland
Redevelopment Project Area No. 1),
Series A, (AMBAC Insured),
5.000% due 12/01/2028........................ 3,153
Huntington Beach, Union High School
District, GO, (Election of 2004),
(FSA Insured):
2,000 5.000% due 08/01/2027........................ 2,114
5,000 5.000% due 08/01/2029........................ 5,274
2,000 Huntington Park, Public Financing Authority,
Lease Revenue, (Wastewater System
Project),
6.200% due 10/01/2025........................ 2,087
5,000 Imperial Irrigation District, COP, (Water
System Projects), (AMBAC Insured),
5.500% due 07/01/2029........................ 5,486
1,250 Imperial,Water Facilities Revenue, COP,
(FGIC Insured),
5.000% due 10/15/2020........................ 1,333
See Notes to Financial Statements.
66
Portfolio of Investments (continued)
CALIFORNIA MUNICIPAL FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- -------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
CALIFORNIA - (CONTINUED)
$ 990 Irvine, Meadows Mobile Home Park, Mortgage
Revenue, Series A,
5.700% due 03/01/2018......................... $ 1,033
Irvine, Public Facilities & Infrastructure
Authority,Assessment Revenue, (AMBAC Insured):
Series B:
1,455 5.000% due 09/02/2020......................... 1,508
3,630 5.000% due 09/02/2021......................... 3,762
2,000 Series C,
5.000% due 09/02/2023......................... 2,063
1,825 La Canada, Unified School District, GO,
(Election of 2004), Series A,
(MBIA Insured),
5.500% due 08/01/2028......................... 2,025
La Quinta, Financing Authority, Local Agency
Revenue, Series A, (AMBAC Insured):
2,000 5.000% due 09/01/2029......................... 2,107
1,000 5.250% due 09/01/2024......................... 1,090
1,500 La Verne, Public Financing Authority,
Revenue Bonds, (Capital Improvement
Projects),
7.250% due 09/01/2026......................... 1,567
1,000 Laguna Hills, COP, (Community Center
Project), (MBIA Insured),
5.000% due 12/01/2017......................... 1,078
1,975 Lake Elsinore, Public Financing Authority,
Local Agency Revenue, Series G,
5.800% due 09/02/2015......................... 2,093
2,000 Long Beach, Community Facilities
District No. 5, Special Tax Revenue,
(Towne Center),
6.875% due 10/01/2025......................... 2,082
5,000 Long Beach, Harbor Revenue, Series A,
AMT, (MBIA Insured),
5.000% due 05/15/2025......................... 5,239
Long Beach, Redevelopment Agency, Tax
Allocation Revenue, (AMBAC Insured):
1,315 (North Long Beach Redevelopment
Projects), Series A,
5.000% due 08/01/2022......................... 1,388
2,000 (Redevelopment, Housing & Gas Utility
Financings), Series A-1,
5.000% due 08/01/2035......................... 2,087
320 Los Angeles, Community Redevelopment
Agency, Housing Revenue, Series C,
(AMBAC Insured),
6.750% due 07/01/2014......................... 327
2,500 Los Angeles, Community Redevelopment
Agency, Tax Allocation Revenue, (North
Hollywood Project), Series E, (MBIA
Insured),
5.400% due 07/01/2024......................... 2,721
15 Los Angeles, Home Mortgage Revenue,
(Mortgage-Backed Securities Project),
(GNMA Collateral),
8.100% due 05/01/2017......................... 15
1,000 Los Angeles, MFHR, (Ridgecroft Apartments
Project), Series E, AMT, (GNMA Collateral),
6.250% due 09/20/2039......................... 1,039
1,445 Los Angeles, Special Assessment Revenue,
(Landscaping & Lighting District No. 96-1
Project), (AMBAC Insured),
5.000% due 03/01/2022......................... 1,521
1,405 Los Gatos-Saratoga, Joint Unified High
School District, GO, (Election of 1998),
Series B,
5.750% due 12/01/2021......................... 1,612
Moreno Valley, Unified School District, COP,
(FSA Insured):
1,600 5.000% due 03/01/2025......................... 1,691
1,760 5.000% due 03/01/2027......................... 1,846
1,490 Mountain View, Shoreline Regional Park
Community, Tax Allocation Revenue,
Series A, (MBIA Insured),
5.250% due 08/01/2015......................... 1,636
2,785 Needles, Public Utilities Authority,
Utilities Revenue, (Utilities System
Acquisition Project), Series A,
6.500% due 02/01/2022......................... 2,866
1,300 Oakland, Revenue Bonds, (YMCA East Bay
Project),
7.100% due 06/01/2010......................... 1,344
1,565 Oakland, Unified School District, GO,
(Alameda County School Improvements),
(FSA Insured),
5.000% due 08/01/2017......................... 1,660
1,485 Oceanside, Community Facilities District
No. 01-1, Special Tax Revenue, (Morro Hills
Development Project), Series A,
5.500% due 09/01/2029......................... 1,497
1,500 Oceanside, COP, Series A, (AMBAC Insured),
5.250% due 04/01/2018......................... 1,635
4,000 Orange County, COP, Series A,
(MBIA Insured),
5.800% due 07/01/2016......................... 4,218
Oxnard, Harbor District, Revenue Bonds:
1,200 Series A,AMT,
5.750% due 08/01/2020......................... 1,254
1,000 Series B,
6.000% due 08/01/2024......................... 1,060
1,090 Pacifica,Wastewater Revenue,
(AMBAC Insured),
5.000% due 10/01/2024......................... 1,160
1,280 Palm Desert, Financing Authority, Tax
Allocation Revenue, (Project Area No. 2),
Series A, (MBIA Insured),
5.000% due 08/01/2022......................... 1,367
1,995 Pomona, COP, (Mission Promenade Project),
Series AE, (AMBAC Insured),
5.375% due 10/01/2032......................... 2,146
5,000 Pomona, Public Financing Authority, Tax
Allocation Revenue, (Merged
Redevelopment Project), Series AD,
(MBIA Insured),
5.000% due 02/01/2021......................... 5,237
See Notes to Financial Statements.
67
Portfolio of Investments (continued)
CALIFORNIA MUNICIPAL FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- -------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
CALIFORNIA - (CONTINUED)
$ 1,000 Pomona, Unified School District, GO,
(MBIA Insured),
6.150% due 08/01/2030........................ $ 1,222
5,000 Port of Oakland,Airport & Marina
Revenue, Series K,AMT, (FGIC Insured),
5.750% due 11/01/2029........................ 5,402
1,000 Poway, Redevelopment Agency, Tax Allocation
Revenue, (Paguay Redevelopment Project),
(AMBAC Insured),
5.375% due 06/15/2019........................ 1,111
2,750 Redding, Electrical Systems, COP,
(Inverse Floater), (MBIA Insured),
9.866% due 07/01/2022+....................... 4,043
1,000 Redondo Beach, Public Financing Authority,
Revenue Bonds, (South Bay Center
Redevelopment Project),
7.125% due 07/01/2026........................ 1,045
1,160 Riverside County, COP, (Capital Improvement
& Family Law Court Refunding Projects),
Series A, (FGIC Insured),
5.000% due 11/01/2025........................ 1,230
2,100 Riverside County, Public Financing Authority,
COP,
5.800% due 05/15/2029........................ 2,178
Rocklin, Unified School District, Capital
Appreciation, GO, (FGIC Insured):
1,030 Zero coupon due 08/01/2014................... 656
1,210 Zero coupon due 08/01/2016................... 686
1,255 Zero coupon due 08/01/2017................... 674
1,360 Zero coupon due 08/01/2019................... 653
1,415 Zero coupon due 08/01/2020................... 643
1,225 Zero coupon due 08/01/2023................... 472
Sacramento County, Airport System Revenue,
Series A, (FSA Insured):
2,425 5.250% due 07/01/2019........................ 2,649
1,000 5.250% due 07/01/2020........................ 1,083
2,000 Sacramento County, Sanitation District
Financing Authority, Sewer Revenue, ETM,
5.000% due 12/01/2016........................ 2,039
Saddleback Valley, Unified School District,
GO, (Election of 2004), Series A,
(FSA Insured):
3,000 5.000% due 08/01/2027........................ 3,172
4,000 5.000% due 08/01/2029........................ 4,220
Salinas Valley, Solid Waste Authority,
Resource Recovery Revenue, AMT,
(AMBAC Insured):
2,475 5.250% due 08/01/2027........................ 2,602
2,000 5.250% due 08/01/2031........................ 2,091
San Bernardino, Redevelopment Agency,
Tax Allocation Revenue, (San Sevaine
Redevelopment Project), Series A:
1,000 6.900% due 09/01/2018........................ 1,090
2,000 7.100% due 09/01/2029........................ 2,156
1,885 San Buenaventura, COP, Series B, (AMBAC
Insured),
5.500% due 01/01/2017........................ 2,106
3,520 San Diego County, COP, (Edgemoor &
Regional Communications System
Refunding Project), (AMBAC Insured),
5.000% due 02/01/2027........................ 3,707
San Diego, Redevelopment Agency,Auto
Parking Revenue:
1,000 (Centre City Redevelopment Project),
Series A,
6.400% due 09/01/2019........................ 1,077
1,085 (Southcrest Redevelopment Project),
6.500% due 10/01/2025........................ 1,179
4,000 San Diego,Water Authority Revenue, COP,
Series B, (Inverse Floater), (MBIA
Insured),
10.420% due 04/08/2021+ ..................... 4,428
San Francisco City and County, International
Airports Commission,Airport Revenue,
Second Series,AMT, (MBIA Insured):
4,000 Issue 27A,
5.250% due 05/01/2026........................ 4,166
4,070 Issue 28A,
5.250% due 05/01/2020........................ 4,308
2,475 San Francisco City and County,
Redevelopment Agency, Lease Revenue,
(George R. Moscone Convention Center
Project), (XLCA Insured),
Zero coupon due 07/01/2013................... 1,799
San Francisco City and County,
Redevelopment Financing Authority, Tax
Allocation Revenue, (San Francisco
Redevelopment Projects), Series A,
(FSA Insured):
3,150 5.000% due 08/01/2017........................ 3,309
3,320 5.000% due 08/01/2018........................ 3,487
3,215 San Jose,Airport Revenue, Series A, (FSA
Insured),
5.375% due 03/01/2017........................ 3,566
9,310 San Jose, Financing Authority, Lease
Revenue, (Convention Center Project),
Series F, (MBIA Insured),
5.000% due 09/01/2018........................ 10,019
1,000 San Jose, MFHR, (Sixth & Martha Family
Apartments),AMT, (FNMA Collateral),
5.875% due 03/01/2033 ....................... 1,045
3,780 San Juan, Unified School District, GO,
(Election of 2002), Series A, (MBIA
Insured),
5.000% due 08/01/2027........................ 3,996
4,000 San Marcos, Public Facilities Authority,
Sr. Tax Incremental Revenue, (Project
Area No. 3-A), (AMBAC Insured),
5.000% due 10/01/2034........................ 4,179
1,350 Santa Monica-Malibu, Unified School
District, GO,
5.750% due 08/01/2025........................ 1,514
4,505 Santa Rosa, Mortgage Revenue, (Channate
Lodge), (FHA Insured),
6.700% due 12/01/2024........................ 4,555
3,000 Semitropic Improvement District of
Semitropic Water Storage District,
Water Banking Revenue, Series A,
(XLCA Insured),
5.125% due 12/01/2035........................ 3,146
See Notes to Financial Statements.
68
Portfolio of Investments (continued)
CALIFORNIA MUNICIPAL FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- --------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
CALIFORNIA - (CONTINUED)
$ 1,880 Simi Valley, Community Development
Agency, Commonwealth Mortgage Revenue,
(Sycamore Plaza II),
6.000% due 09/01/2012**............................... $ 1,949
South Gate, Public Financing Authority,
Tax Allocation Revenue, (South Gate
Redevelopment Project No. 1):
2,090 (AMBAC Insured),
5.250% due 09/01/2022................................. 2,264
1,500 (XLCA Insured),
5.000% due 09/01/2016................................. 1,621
1,780 Stockton-East,Water District, COP,
(1975 & 1990 Projects), Series A,
(FGIC Insured),
5.250% due 04/01/2022................................. 1,929
3,270 Temecula, Redevelopment Agency, Tax
Allocation Revenue, (Redevelopment
Project No.1), (MBIA Insured),
5.250% due 08/01/2036................................. 3,468
1,000 Torrance, Hospital Revenue, (Torrance
Memorial Medical Center), Series A,
6.000% due 06/01/2022................................. 1,114
1,900 Turlock, COP, (Emanuel Medical Center
Inc. Project), Series A,
5.375% due 10/15/2034................................. 1,948
1,000 Tustin, Community Facilities District
No. 04-1, Special Tax Revenue, (Tustin
Legacy/John Laing Homes Project),
5.375% due 09/01/2029................................. 1,014
University of California, College &
University Revenue, (Multi-Purpose
Projects), (FGIC Insured):
Series M:
2,260 5.125% due 09/01/2017................................. 2,445
4,635 5.125% due 09/01/2018................................. 5,010
2,000 Val Verde, Unified School District, COP,
(FGIC Insured),
5.250% due 01/01/2025................................. 2,168
2,035 Vallejo City, Unified School District, GO,
Series A, (MBIA Insured),
5.900% due 02/01/2021................................. 2,472
3,040 Ventura County, COP, (Public Financing
Authority I), Series A, (FSA Insured),
5.250% due 08/15/2016................................. 3,275
2,305 Walnut, Public Financing Authority, Tax
Allocation Revenue, (Walnut Improvement
Project), (AMBAC Insured),
5.375% due 09/01/2022................................. 2,512
1,350 West Contra Costa, Unified School District,
GO, Series A, (MBIA Insured),
5.350% due 02/01/2017................................. 1,543
--------
411,052
--------
VIRGIN ISLANDS - 0.2%
1,000 Virgin Islands, Public Finance Authority,
Revenue Bonds, (Gross Receipts of Taxes
on Loan Notes), Series A,
6.375% due 10/01/2019................................. 1,140
--------
Total Municipal Bonds and Notes
(Cost $389,028)....................................... 412,192
--------
SHORT-TERM MUNICIPAL BONDS - 0.2%
(Cost $700)
700 California State Department of Water Resources,
Power Supply Revenue, Series B,
3.010% due 05/01/2022++............................... $ 700
--------
TOTAL INVESTMENTS (Cost $389,728*)......................... 98.7% 412,892
OTHER ASSETS (LIABILITIES) (NET)........................... 1.3 5,305
----- --------
NET ASSETS................................................. 100.0% $418,197
===== ========
- --------------------------
* Aggregate cost for federal tax purposes.
** Security deemed illiquid by the Portfolio Manager.
+ Variable rate security. The interest rate shown reflects the rate in
effect at April 30, 2005.
++ Variable rate securities payable upon demand with not more than five
business days notice, and secured by bank letters of credit or guarantees
by certain corporations. The interest rate shown reflects the rate in
effect at April 30, 2005.
California Municipal Fund had the following industry concentrations greater than
10% at April 30, 2005 (as a percentage of the total net assets of the Fund)
(unaudited):
General Purpose 39.0%
General Obligation 15.3%
Transportation 12.4%
California Municipal Fund had the following insurance concentrations greater
than 10% at April 30, 2005 (as a percentage of the total net assets of the Fund)
(unaudited):
MBIA 26.1%
AMBAC 16.6%
FSA 12.0%
GLOSSARY OF TERMS
ACA -- ACA Financial Guaranty Corporation
AGC -- ACE Guaranty Corporation
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
CIFG -- CDC IXIS Financial Guaranty North America, Inc.
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Federal Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GO -- General Obligation
IBC -- Insured Bond Certificate
ICC -- Insured Custody Certificates
IDR -- Industrial Development Revenue
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
PCR -- Pollution Control Revenue
SFMR -- Single Family Mortgage Revenue
TCRS -- Transferable Custodial Receipts
XLCA -- XL Capital Assurance Inc.
See Notes to Financial Statements.
69
Portfolio of Investments
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- -------
MUNICIPAL BONDS AND NOTES - 96.6%
CALIFORNIA - 93.6%
$ 1,000 ABAG Financing Authority for Nonprofit
Corporations, COP, (Episcopal Homes
Foundation),
6.250% due 08/15/2030........................ $ 1,076
1,000 Alameda County, COP, (MBIA Insured),
(Santa Rita Jail Project),
5.375% due 06/01/2009........................ 1,048
1,000 Alameda County, Public Financing Authority,
Lease Revenue,
5.000% due 09/02/2008........................ 1,026
1,025 Anaheim Public Financing Authority,
Distribution System Revenue, (City of
Anaheim Electric System Distribution
Facilities), (MBIA Insured),
3.000% due 10/01/2006........................ 1,030
2,000 Anaheim, Public Financing Authority, Lease
Revenue, (Convention Center Project),
Series A, (AMBAC Insured),
5.250% due 08/01/2013........................ 2,231
Anaheim, Public Financing Authority,
Power & Light Revenue, (Electric System
Generation Project), Series B, (FSA Insured):
2,000 5.000% due 10/01/2015........................ 2,166
2,000 5.250% due 10/01/2014........................ 2,236
1,130 Baldwin Park Public Financing Authority,
Sales Tax & Tax Allocation Revenue,
(Puente Merced Redevelopment Project),
4.625% due 08/01/2016........................ 1,155
1,000 California Educational Facilities
Authority, Student Loan Revenue, (California
Loan Program), Series A, AMT, (MBIA Insured),
5.100% due 03/01/2014........................ 1,054
1,000 California Health Facilities Financing
Authority, Health Care Revenue, (Insured
De Las Companas Project), Series A,
(AMBAC Insured),
5.875% due 07/01/2009........................ 1,025
California Housing Finance Agency,
Mortgage Revenue, Series N, AMT,
(AMBAC Insured):
1,000 5.000% due 08/01/2008........................ 1,040
1,000 5.100% due 02/01/2009........................ 1,045
California State Department of Water
Resources, Power Supply Revenue, Series A:
1,675 (MBIA-IBC Insured),
5.250% due 05/01/2015........................ 1,846
4,000 (XLCA Insured),
5.375% due 05/01/2017........................ 4,440
3,000 California State Department of Water
Resources, Water System Revenue,
(Central Valley Project), Series Y,
(FGIC Insured),
5.250% due 12/01/2014........................ 3,351
California State Public Works Board, Lease
Revenue:
1,000 (California Community Colleges), Series A,
(AMBAC Insured),
5.250% due 12/01/2012........................ 1,078
2,000 (California State University), Series A,
(AMBAC Insured),
5.375% due 10/01/2017........................ 2,111
2,000 (Department of Corrections Program),
5.250% due 06/01/2012........................ 2,233
1,000 (Department of Corrections-Ten
Administrative Segregation Housing
Units), Series A, (AMBAC Insured),
5.250% due 03/01/2016........................ 1,086
2,750 (Department of General Services), (Capitol
East End Complex-Blocks 171-174 & 225),
Series A, (AMBAC Insured),
5.250% due 12/01/2014........................ 3,047
California State, GO:
2,000 (FGIC-TCRS Insured),
7.000% due 10/01/2010........................ 2,376
1,000 (FSA Insured),
5.500% due 03/01/2012........................ 1,112
(MBIA-IBC Insured):
2,000 5.750% due 10/01/2010........................ 2,258
2,000 6.250% due 09/01/2012........................ 2,361
1,985 (XLCA Insured),
5.500% due 03/01/2011........................ 2,220
1,600 California Statewide Communities
Development Authority, COP, (Children's
Hospital of Los Angeles Project), (MBIA
Insured),
6.000% due 06/01/2007........................ 1,703
1,845 California Statewide Communities
Development Authority, Water Revenue,
(Pooled Financing Program), Series C,
(FSA Insured),
5.250% due 10/01/2015........................ 2,046
1,240 Chino Valley, Unified School District, COP,
Series A, (FSA Insured),
5.250% due 09/01/2013........................ 1,377
1,095 Chula Vista, Public Financing Authority,
Special Tax Revenue, (Assessment Districts
Refinancing), Sr. Lien, Series A, (FSA
Insured),
4.500% due 09/02/2013........................ 1,173
1,660 Corona, COP, (Clearwater Cogeneration
and Recycled Water Projects), (MBIA Insured),
5.000% due 09/01/2016........................ 1,796
Emeryville, Public Financing Authority,
Revenue Bonds, (Emeryville
Redevelopment Project), Series A, (MBIA
Insured):
1,265 5.250% due 09/01/2015........................ 1,404
1,400 5.250% due 09/01/2017........................ 1,554
1,000 Fresno, Unified School District, GO,
Series B, (MBIA Insured),
5.000% due 02/01/2018........................ 1,105
685 Golden West Schools Financing Authority,
Revenue Bonds, Series A, (MBIA Insured),
5.650% due 02/01/2012........................ 783
1,075 Hartnell, Community College District, GO,
(Election of 2002), Series A, (MBIA Insured),
5.000% due 08/01/2016........................ 1,198
1,615 Inglewood, Unified School District, GO,
(Election of 1998), Series C, (FSA
Insured),
5.250% due 10/01/2017........................ 1,795
See Notes to Financial Statements.
70
Portfolio of Investments (continued)
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- -------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
CALIFORNIA - (CONTINUED)
$ 1,195 Kings Canyon, Joint Unified School District,
GO, (FGIC Insured),
5.375% due 08/01/2015............................$ 1,327
1,080 Long Beach, Bond Financing Authority,
Lease Revenue, (Public Safety Facilities
Projects), (AMBAC Insured),
5.250% due 11/01/2013............................ 1,207
3,000 Long Beach, Harbor Department Revenue,
Series B, (FGIC Insured),
5.000% due 05/15/2016............................ 3,286
450 Los Angeles, Community College District,
GO, Series A, (FSA Insured),
3.000% due 08/01/2005............................ 451
1,300 Los Angeles, Department of Water & Power,
Power System Revenue, Series A-2,
(MBIA Insured),
5.000% due 07/01/2017............................ 1,413
2,500 Los Angeles, Harbor Department Revenue,
Series B, AMT,
5.500% due 08/01/2008............................ 2,591
1,045 Los Angeles, Municipal Improvement
Corporation, Lease Revenue, (City of Los
Angeles Central Library Project), Series
AT, (MBIA Insured),
5.500% due 06/01/2017............................ 1,169
1,500 Los Angeles, State Building Authority, Lease
Revenue, (State of California Department of
General Services Lease Project), Series A,
(MBIA-IBC Insured),
5.625% due 05/01/2011............................ 1,667
4,000 Los Angeles, Unified School District, GO,
(Election of 2004), Series B, (FSA Insured),
5.000% due 07/01/2008............................ 4,270
2,105 M-S-R Public Power Agency, San Juan Project
Revenue, Series I, (MBIA Insured),
5.000% due 07/01/2015............................ 2,267
1,105 Madera, Unified School District, GO,
(Election of 2002), (FGIC Insured),
5.000% due 08/01/2017**.......................... 1,216
1,015 Nevada Irrigation District, COP, (FGIC Insured),
5.000% due 01/01/2013............................ 1,116
1,575 Oceanside, COP, Series A, (AMBAC Insured),
5.250% due 04/01/2016............................ 1,726
Ontario, Redevelopment Financing Authority,
Lease Revenue:
1,055 (Capital Projects), (AMBAC Insured),
5.500% due 08/01/2016............................ 1,183
1,060 (Project No.1, Center City & Cimarron
Projects), (MBIA Insured),
5.250% due 08/01/2016............................ 1,167
1,000 Orange County, Public Financing Authority,
Lease Revenue, (Juvenile Justice Center
Facility Project), (AMBAC Insured),
5.375% due 06/01/2016............................ 1,115
1,000 Orange County, Water District Revenue,
COP, Series B, (MBIA Insured),
5.000% due 08/15/2018............................ 1,085
795 Palm Desert, Financing Authority, Tax
Allocation Revenue, (Project Area No. 2),
Series A, (MBIA Insured),
5.000% due 08/01/2012............................ 877
1,000 Port of Oakland, Airport & Marina Revenue,
Series N, AMT, (MBIA Insured),
5.000% due 11/01/2011............................ 1,085
1,210 Redding Joint Powers Financing Authority,
Lease Revenue, (2004 Civic Center
Refunding and Parks Project), Series B,
(AMBAC Insured),
5.000% due 03/01/2015............................ 1,326
1,590 Redlands, COP, (AMBAC Insured),
5.000% due 09/01/2017............................ 1,713
385 Redondo Beach, Public Financing Authority,
Revenue Bonds, (South Bay Center
Redevelopment Project),
6.750% due 07/01/2006............................ 394
2,090 Richmond, Joint Powers Financing Authority,
Tax Allocation Revenue, Series A, (MBIA
Insured),
5.500% due 09/01/2017............................ 2,314
Riverside County, COP, (Historic Courthouse
Refunding Project), Series B,
(FGIC Insured):
1,015 5.000% due 11/01/2018............................ 1,105
1,105 5.000% due 11/01/2019............................ 1,197
1,100 Riverside, Special Tax Revenue, (Community
Facilities District No. 90-1-A), (MBIA
Insured),
5.500% due 09/01/2013............................ 1,233
1,000 San Bernardino County, COP, (West Valley
Detention Center Refinancing Project),
Series B, (MBIA Insured),
5.000% due 11/01/2009............................ 1,084
1,840 San Diego County, COP, (Motorola), (AMBAC Insured),
5.000% due 02/01/2011............................ 2,014
San Francisco City and County, International
Airports Commission, Airport Revenue,
Second Series, AMT:
1,000 Issue 22, (AMBAC Insured),
6.000% due 05/01/2008............................ 1,080
2,290 Issue 28A, (MBIA Insured),
5.000% due 05/01/2012............................ 2,462
2,000 Issue 30, (XLCA Insured),
5.250% due 05/01/2015............................ 2,213
1,000 San Francisco City and County, Public
Utilities Commission, Water Revenue,
Series A, (FSA Insured),
5.000% due 11/01/2016............................ 1,081
710 San Francisco State Building Authority,
Lease Revenue, (State of California
San Francisco Civic Center Complex
Project), Series A, (AMBAC Insured),
6.000% due 12/01/2006............................ 746
1,200 San Jose, Financing Authority, Lease
Revenue, (Convention Center Project),
Series F, (MBIA Insured),
5.000% due 09/01/2016............................ 1,294
1,050 Santa Ana, COP, (Santa Ana Recycling
Project), Series A, AMT, (AMBAC
Insured),
5.400% due 05/01/2007............................ 1,083
2,000 Santa Clara Valley Transportation Authority,
Sales Tax Revenue, Series A, (AMBAC Insured),
5.500% due 04/01/2036............................ 2,075
See Notes to Financial Statements.
71
Portfolio of Investments (Continued)
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- -------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
CALIFORNIA - (CONTINUED)
Santa Maria, Redevelopment Agency, Lease
Revenue, (Town Center & Westside Parking
Facilities Project), (AMBAC Insured):
$ 165 5.000% due 06/01/2013................................. $ 182
1,085 5.250% due 06/01/2015................................. 1,200
1,160 Shasta, Joint Powers Financing Authority,
Lease Revenue, (County Administration
Building Project), Series A, (MBIA
Insured),
5.250% due 04/01/2017................................. 1,266
1,000 South Gate, Public Financing Authority, Tax
Allocation Revenue, (South Gate Redevelopment
Project No. 1), (XLCA Insured),
5.000% due 09/01/2016................................. 1,081
1,300 South Orange County, Public Financing
Authority, Special Tax Revenue, (Foothill
Area-Mello Roos), Series C, (FGIC
Insured),
6.500% due 08/15/2010................................. 1,507
995 Southern California Home Financing
Authority, MFHR, (The Fountains Project),
Series A, AMT, (FNMA Collateral),
5.400% due 01/01/2027................................. 1,009
1,430 Southern California Public Power Authority,
San Juan Power Revenue, (San Juan Unit 3
Project), Series A, (FSA Insured),
5.000% due 01/01/2020**............................... 1,544
935 Stanton, MFHR, (Continental Gardens LP
Project), AMT, (FNMA Collateral),
5.625% due 08/01/2029................................. 984
1,305 Stockton, Community Facilities District
No. 1, Supplemental Tax Revenue, (Mello Roos-
Weston Ranch), Series A,
5.500% due 09/01/2009................................. 1,373
Sunnyvale, Solid Waste Revenue,
(AMBAC Insured):
1,000 5.250% due 10/01/2012................................. 1,093
1,000 5.500% due 10/01/2014................................. 1,105
1,000 5.500% due 10/01/2016................................. 1,094
1,000 Tracy,Area Public Facilities Financing
Agency, Special Tax Revenue, (Community
Facilities District No. 87-1-H), (MBIA
Insured),
5.875% due 10/01/2013................................. 1,062
1,535 Westlands,Water District, COP, Series A, (MBIA
Insured),
5.000% due 09/01/2018................................. 1,666
--------
132,383
--------
GUAM - 0.8%
1,000 Guam Government, GO, Series A, (FSA
Insured),
5.500% due 12/01/2011................................. 1,132
--------
PUERTO RICO - 2.2%
2,000 Puerto Rico Commonwealth, GO, Series E,
(MBIA Insured),
5.000% due 07/01/2028................................. 2,123
1,000 Puerto Rico Public Building Authority,
Government Facilities Revenue, Series K,
(MBIA Insured),
4.000% due 07/01/2026................................. 1,024
--------
3,147
--------
Total Municipal Bonds and Notes
(Cost $132,785)....................................... 136,662
--------
SHORT-TERM MUNICIPAL BONDS - 3.2%
1,700 California Housing Finance Agency, Housing
Revenue, (Home Mortgages), Series U, AMT,
(MBIA Insured),
3.030% due 08/01/2032+................................ 1,700
2,800 Orange County, COP, (Sanitation Districts
Nos. 1-3, 5-7 & 11), (AMBAC Insured),
3.010% due 08/01/2016+................................ 2,800
--------
Total Short-Term Municipal Bonds
(Cost $4,500)......................................... 4,500
--------
TOTAL INVESTMENTS ++ (Cost $137,285*)...................... 99.8% 141,162
OTHER ASSETS (LIABILITIES) (NET)........................... 0.2 219
----- --------
NET ASSETS................................................. 100.0% $141,381
===== ========
- --------------
* Aggregate cost for federal tax purposes.
** Security purchased on a when-issued basis.
+ Variable rate securities payable upon demand with not more than five
business days notice, and secured by bank letters of credit or guarantees
by certain corporations. The interest rate shown reflects the rate in
effect at April 30, 2005.
++ All securities segregated as collateral for when-issued securities.
California Insured Intermediate Municipal Fund had the following industry
concentrations greater than 10% at April 30, 2005 (as a percentage of the total
net assets of the Fund) (unaudited):
General Purpose 35.7%
General Obligation 17.2%
Power 11.4%
Transportation 10.7%
California Insured Intermediate Municipal Fund had the following insurance
concentrations greater than 10% at April 30, 2005 (as a percentage of the total
net assets of the Fund) (unaudited):
MBIA 33.3%
AMBAC 25.0%
FSA 14.4%
FGIC 11.7%
GLOSSARY OF TERMS
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
COP -- Certificates of Participation
FGIC -- Federal Guaranty Insurance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GO -- General Obligation
IBC -- Insured Bond Certificate
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
TCRS -- Transferable Custodial Receipts
XLCA -- XL Capital Assurance
See Notes to Financial Statements.
72
Portfolio of Investments
MONEY MARKET FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- -------
COMMERCIAL PAPER (DOMESTIC) - 4.8%
Cooperative Association of Tractor
Dealers Inc.:
$ 10,200 Series A,
2.850% due 07/19/2005+++..................... $ 10,137
Series B:
6,000 2.770% due 05/31/2005+++..................... 5,987
6,100 2.860% due 06/28/2005+++..................... 6,072
10,000 Morgan Stanley,
3.000% due 06/20/2005+++..................... 9,959
--------
Total Commercial Paper (Domestic)
(Cost $32,155)............................... 32,155
--------
COMMERCIAL PAPER (YANKEE) - 1.5%
(Cost $9,999)
10,000 American Honda Finance Corporation,
2.710% due 05/03/2005+++..................... 9,999
--------
CERTIFICATES OF DEPOSIT (YANKEE) - 3.1%
Canadian Imperial Bank of Commerce, Note:
16,000 2.820% due 11/28/2005++...................... 15,995
5,000 3.004% due 04/28/2006++...................... 4,999
--------
Total Certificates of Deposit (Yankee)
(Cost $20,994)............................... 20,994
--------
MEDIUM TERM NOTES - 15.1%
American Honda Finance Corporation:
13,000 3.040% due 03/13/2006++**.................... 13,009
10,000 3.080% due 07/11/2005++**.................... 10,000
3,400 Bank One Corporation, Note, Series C,
3.361% due 07/25/2005++...................... 3,402
8,000 Caterpillar Financial Service Corporation,
Note, Series F,
3.153% due 04/07/2006++...................... 8,004
General Electric Capital Corporation,
Series A:
10,200 2.870% due 05/12/2005++...................... 10,200
4,850 2.950% due 02/03/2006++...................... 4,859
12,000 3.090% due 03/29/2006++...................... 12,005
5,000 JP Morgan Chase & Company, Sr. Note,
Series C,
3.120% due 05/20/2005++...................... 5,000
Merrill Lynch & Company, Inc., Note:
10,000 3.280% due 07/11/2005++...................... 10,004
19,522 Series B,
3.400% due 06/13/2005++...................... 19,531
5,000 National City Bank, Note,
2.820% due 05/19/2005++...................... 5,000
--------
Total Medium Term Notes
(Cost $101,014).............................. 101,014
--------
CORPORATE BONDS AND NOTES - 35.9%
1,153 2440 LLC, Note, (LOC: Fifth Third Bank),
3.060% due 05/01/2024+**..................... 1,153
6,500 2880 Stevens Creek LLC, Bond, (LOC: Bank of
the West),
3.100% due 11/01/2033+....................... 6,500
2,885 ASSK Properties LC, Note, (LOC: Wells
Fargo Bank),
3.170% due 12/01/2017+....................... 2,885
5,950 Associates Corporation NA, Sr. Note,
6.200% due 05/16/2005........................ 5,958
1,750 Avatar Corporation, Note,
(LOC: Fifth Third Bank),
3.060% due 05/01/2039+**..................... 1,750
1,000 Banaba Properties LLC, Note,
(LOC: Fifth Third Bank),
3.060% due 03/01/2020+....................... 1,000
21,850 Bank One Corporation, Note,
7.625% due 08/01/2005........................ 22,101
1,300 Bedford Hills Golf Club, Note,
(LOC: Fifth Third Bank),
3.060% due 04/01/2013+....................... 1,300
2,405 Boardwalk Enterprises, Note,
(LOC: Fifth Third Bank),
3.060% due 04/01/2024+**..................... 2,405
1,450 Brookville Enterprises, Note,
(LOC: Fifth Third Bank),
3.060% due 10/01/2025+....................... 1,450
3,000 Campus Research Corporation, Note,
Series A, (LOC: Wells Fargo Bank),
3.220% due 06/01/2013+....................... 3,000
3,800 Chatham Capital Corporation, Note,
(LOC: Fifth Third Bank),
3.010% due 11/01/2028+....................... 3,800
14,000 Citigroup Inc., Note,
2.950% due 09/01/2005++...................... 14,003
12,315 Commercial Credit Corporation, Note,
(LOC: Citigroup),
6.500% due 06/01/2005........................ 12,359
2,000 Community Housing Development, Bond,
(LOC: Wells Fargo Bank),
3.070% due 08/01/2024+....................... 2,000
8,475 Corporate Finance Managers, Note,
(LOC: Wells Fargo Bank),
3.070% due 02/02/2043+....................... 8,475
1,150 Corvasc Real Estate, Note,
(LOC: Fifth Third Bank),
3.060% due 05/01/2024+....................... 1,150
1,000 Crestmont Nursing Home, Note,
(LOC: Fifth Third Bank),
3.010% due 03/01/2024+**..................... 1,000
1,500 D & I Properties LLC, Bond,
(LOC: Wells Fargo Bank),
3.100% due 11/01/2034+....................... 1,500
1,600 DBSI First Mortgage 1998, Note,
(LOC: U.S. Bank),
3.100% due 07/01/2023+....................... 1,600
200 Derby Fabricating LLC, Bond,
(LOC: Fifth Third Bank),
3.060% due 06/01/2024+....................... 200
1,000 Elmhurst Memorial Healthcare, Note,
(LOC: Fifth Third Bank),
3.030% due 01/01/2034+**..................... 1,000
27,131 Everett Clinic, P.S., Bond,
(LOC: Bank of America),
3.070% due 05/01/2022+....................... 27,131
800 Exal Corporation, Note,
(LOC: Fifth Third Bank),
3.060% due 03/01/2009+....................... 800
See Notes to Financial Statements.
73
Portfolio of Investments (continued)
MONEY MARKET FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000S) (000s)
- --------- ----------
CORPORATE BONDS AND NOTES - (CONTINUED)
$ 950 Family Express LLC, Note,
(LOC: Fifth Third Bank),
3.010% due 04/01/2028+ ................... $ 950
1,100 Fifth Third Bank, Note,
(LOC: Fifth Third Bank),
3.060% due 06/01/2018+** ................. 1,100
7,490 Foster Schweihofer Real Estate Holdings
Company, LLC, Note,
(LOC: Fifth Third Bank),
3.010% due 09/20/2033+ ................... 7,490
1,630 Gold Key Processing Limited, Note,
(LOC: Fifth Third Bank),
3.060% due 07/01/2024+ ................... 1,630
2,000 Gulf Gate Apartments, Bond,
(LOC: Wells Fargo Bank),
3.070% due 09/01/2028+** ................. 2,000
900 Henderson Regional Authority, Bond,
(LOC: Fifth Third Bank),
3.060% due 07/01/2023+ ................... 900
4,600 Iowa 80 Group Inc., Note,
(LOC: Wells Fargo Bank),
3.010% due 06/01/2016+ ................... 4,600
1,000 ISO Building LLC, Note,
(LOC: Fifth Third Bank),
3.060% due 03/01/2023+** ................. 1,000
1,000 JUL-Mark Investments LLC, Note,
(LOC: Fifth Third Bank),
3.060% due 10/01/2025+** ................. 1,000
2,038 KAT LLC, Note,
(LOC: Fifth Third Bank),
3.060% due 06/01/2029+ ................... 2,038
1,880 KL Morris Family LP, Note,
(LOC: Fifth Third Bank),
3.060% due 02/01/2020+ ................... 1,880
1,500 LAL Holding Company, Note,
(LOC: Fifth Third Bank),
3.060% due 08/01/2019+ ................... 1,500
955 Lauren Company LLC, Bond,
(LOC: Wells Fargo Bank),
3.070% due 07/01/2033+** ................. 955
1,000 Lee Family Partnership, Note,
(LOC: Fifth Third Bank),
3.060% due 06/01/2034+ ................... 1,000
2,200 Lincoln Parkway LLC, Note,
(LOC: Fifth Third Bank),
3.060% due 06/01/2044+ ................... 2,200
1,800 Marsh Enterprises LLC, Note,
(LOC: Fifth Third Bank),
3.010% due 01/01/2028+ ................... 1,800
900 Martin Road Investments, Bond,
(LOC: Fifth Third Bank),
3.060% due 10/01/2027+ ................... 900
2,400 Medical Properties Inc., Revenue Bonds,
(Dakota Clinic Ltd. Project),
(LOC: ABN AMRO Bank NV),
2.870% due 12/15/2024+ ................... 2,400
Michigan Equity Group, Note,
(LOC: Fifth Third Bank):
900 3.060% due 04/01/2034+ ................... 900
2,530 Series B,
3.060% due 04/01/2034+** ................. 2,530
3,220 Morgan Stanley Dean Witter, Note,
7.750% due 06/15/2005 .................... 3,238
2,300 NO S Properties LLC, Note,
(LOC: Fifth Third Bank),
3.060% due 08/01/2024+ ................... 2,300
4,500 Pineview Estates LC, Note,
(LOC: Fifth Third Bank),
3.010% due 01/01/2023+ ................... 4,500
14,028 Portland Clinic LLP, Bond,
(LOC: U.S. Bank),
2.870% due 11/20/2027+ ................... 14,028
1,000 R.O. Davis Real Estate, Note,
(LOC: Fifth Third Bank),
3.060% due 04/01/2023+ ................... 1,000
1,610 Realty Holding Company LLC, Note,
(LOC: Fifth Third Bank),
3.060% due 05/01/2024+** ................. 1,610
3,750 Robert C. Fox, Jr., Note,
(LOC: Comerica Bank),
3.100% due 06/01/2033+ ................... 3,750
4,600 Rockwood Quarry LLC, Note,
(LOC: Fifth Third Bank),
3.010% due 12/01/2022+ ................... 4,600
1,400 Sanders CRS Exchange LLC, Note,
(LOC: Wells Fargo Bank),
3.300% due 10/01/2023+** ................. 1,400
1,000 SJD Service Company LLC, Note,
(LOC: Fifth Third Bank),
3.060% due 10/01/2023+ ................... 1,000
1,000 Skeletal Properties, Note,
(LOC: Fifth Third Bank),
3.060% due 11/01/2014+ ................... 1,000
3,000 SouthTrust Bank NA, Note,
2.810% due 05/02/2005++ .................. 3,000
1,250 Spartan Medical Facility, Note,
(LOC: Fifth Third Bank),
3.060% due 12/01/2026+** ................. 1,250
3,000 Stephens & Stephens XI, Bond,
(LOC: Bank of the West),
3.100% due 11/01/2034+ ................... 3,000
2,800 Tacoma Goodwill Industries, Bond,
(LOC: Bank of America),
3.020% due 02/01/2023+ ................... 2,800
2,000 Titan Holdings Group LLC, Note,
(LOC: Fifth Third Bank),
3.060% due 05/01/2012+ ................... 2,000
1,125 United Transportation Union, Bond,
(LOC: Fifth Third Bank),
3.060% due 06/01/2009+ ................... 1,125
8,228 Wachovia Corporation, Sr. Note,
7.550% due 08/18/2005 .................... 8,338
1,393 Watts Brothers Frozen Foods, Bond,
(LOC: U.S. Bank),
3.100% due 07/01/2013+ ................... 1,393
13,000 Wells Fargo Company, Note,
3.030% due 03/03/2006+ ................... 13,015
2,260 Westgate Investment Fund, Bond,
(LOC: Wells Fargo Bank),
3.070% due 02/01/2012+ ................... 2,260
----------
Total Corporate Bonds and Notes
(Cost $239,900) .......................... 239,900
----------
See Notes to Financial Statements.
74
Portfolio of Investments (continued)
MONEY MARKET FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000S) (000s)
- --------- ----------
TAXABLE MUNICIPAL BONDS - 28.6%
$ 2,000 ABAG, California, Finance Authority for
Nonprofit Corporations, Revenue Bonds,
(Public Policy Institute of California
Project), Series B,
(LOC: Bank of New York),
3.100% due 11/01/2031+ ................... $ 2,000
6,940 Acworth, Georgia, Downtown Development
Authority, IDR, (City of Acworth Cable
Fiber Optic Project), (AMBAC Insured),
3.020% due 01/01/2017+ ................... 6,940
1,300 California Statewide Communities
Development Authority, MFHR, (Pavilions
at Sunrise Apartments), Series M-T,
(FNMA Collateral),
2.970% due 08/15/2034+ ................... 1,300
2,085 Collier County, Florida, MFHR, (Brittany Bay
Apartments Project), Series B,
(FNMA Collateral),
3.050% due 07/15/2034+ ................... 2,085
1,225 Colorado Housing & Finance Authority,
Economic Development Revenue, (G.A.
Wright Asset Management, LLC Project),
(LOC: Wells Fargo Bank),
3.070% due 04/01/2029+ ................... 1,225
25,000 Connecticut State Housing Finance Authority,
Housing Revenue, (Housing Mortgage
Finance Program), Subseries B-6,
(AMBAC Insured),
3.050% due 11/15/2027+ ................... 25,000
Fairfield California Pension Obligation,
Revenue Bonds, Series A-2,
(LOC: Landesbank Hessen - Thuringen):
5,000 3.100% due 06/01/2034+ ................... 5,000
2,000 3.100% due 06/01/2034+ ................... 2,000
4,250 Four Dam Pool Power Agency, Alaska,
Electric Revenue, Series B,
(LOC: Dexia Bank),
3.020% due 07/01/2026+ ................... 4,250
200 Illinois Health Facilities Authority, Health
Care Revenue, (West Suburban Hospital
Medical Center Project), Series B,
(LOC: American National Bank),
2.850% due 07/01/2024+ ................... 200
4,000 Kansas City, Missouri, Tax Increment
Financing Commission, Tax Increment
Revenue, (909 Walnut Parking Facility
Project), (AMBAC Insured),
3.050% due 02/01/2024+ ................... 4,000
2,900 Kern Water Bank Authority, California,
Water Revenue, Series B,
(LOC: Wells Fargo Bank),
3.070% due 07/01/2028+ ................... 2,900
2,600 Kit Carson County, Colorado, Agricultural
Development Revenue, (Midwest
Farms LLC),
(LOC: Wells Fargo Bank),
3.050% due 06/01/2027+ ................... 2,600
3,000 Long Beach, California, Revenue Bonds,
(Long Beach Towne Center Site
Refinancing Project), Series A,
(LOC: Allied Irish Bank PLC),
3.100% due 11/01/2030+ ................... 3,000
2,450 Massachusetts State Development Finance
Agency, Solid Waste Disposal Revenue,
(The Newark Group Project), Series D,
(LOC: JPMorgan Chase Bank),
3.020% due 07/01/2016+ ................... 2,450
2,000 Memorial Health System, Illinois, Health
Care Revenue, (LOC: Bank One NA),
3.050% due 10/01/2024+ ................... 2,000
3,005 Michigan State Strategic Fund, Limited
Obligation Revenue, (Environmental
Research Institute of Michigan Project),
Series B, (LOC: Fifth Third Bank),
3.010% due 10/01/2025+ ................... 3,005
1,000 Montrose County, Colorado, Economic
Development Revenue, (Gordon
Development Project), Series A,
(LOC: Wells Fargo Bank),
3.070% due 06/01/2010+ ................... 1,000
4,110 New Hampshire State Housing Finance
Authority, MFHR, (Pheasant Run
Properties Limited Partnership Project),
(FNMA Collateral),
2.850% due 04/15/2016+ ................... 4,110
20,000 New York City, GO, Subseries A-11,
(FGIC Insured),
3.050% due 11/01/2020+ ................... 20,000
28,000 New York State Housing Finance Agency,
Housing Revenue, (900 8th Avenue
Housing Project), Series B,
(LOC: KeyBank National Association),
2.850% due 11/01/2035+ ................... 28,000
4,800 New York State Housing Finance Agency,
Housing Revenue, (West 33rd Street
Project), Series B, (FNMA Collateral),
2.950% due 11/15/2036+ ................... 4,800
6,685 North Carolina Capital Facilities Finance
Agency, College & University Revenue,
(Wolfpack Towers Project), Series B,
(LOC: Bank of America),
3.020% due 09/01/2018+ ................... 6,685
Orange County, Florida, Housing Finance
Authority, MFHR, Series B:
2,320 (Northbridge At Millenia - Phase II
Project), (LOC: SouthTrust Bank),
3.080% due 09/15/2036+ ................... 2,320
1,550 (The Landings on Millenia Blvd.
Apartments), (FNMA Collateral),
2.860% due 08/15/2035+ ................... 1,550
2,375 Plymouth, Minnesota, Health Facilities
Revenue, (Westhealth Project), Series B,
(FSA Insured),
3.050% due 06/01/2024+ ................... 2,375
3,200 Richmond, California, MFHR, (Bay Cliff
Apartments Project), Series B,
(FNMA Collateral),
2.960% due 08/15/2037+ ................... 3,200
5,250 Santa Rosa, California, Pension Obligation,
Revenue Bonds, Series A,
(LOC: Landesbank Hessen-Thuringen),
3.100% due 09/01/2024+ ................... 5,250
2,800 Savannah College of Art & Design, Inc.,
Georgia, Revenue Bonds,
(LOC: Bank of America),
3.060% due 04/01/2024+ ................... 2,800
See Notes to Financial Statements.
75
Portfolio of Investments (continued)
MONEY MARKET FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000S) (000s)
- --------- ----------
TAXABLE MUNICIPAL BONDS - (CONTINUED)
$ 10,200 South Fulton, Georgia, Municipal Regional
Jail Authority, Lease Revenue, (Union City
Justice Center Project), (MBIA Insured),
3.060% due 11/01/2017+ ........................... $ 10,200
5,750 Union County Improvement Authority, New
Jersey, Revenue Bonds, (Cedar Glen
Housing Corporation - Hanover Township
Housing Project), Series B,
(FNMA Collateral),
2.950% due 12/15/2014+ ........................... 5,750
7,000 Utah Telecommunication Open Infrastructure
Agency, Telecommunications Revenue,
(LOC: Bank of America Corporation),
3.020% due 07/01/2026+ ........................... 7,000
3,600 Val Verde Unified School District, California,
COP, (Land Bank Program), Series B,
(LOC: Bank of America),
3.020% due 09/01/2010+ ........................... 3,600
Washington State Housing Finance
Commission, MFHR, Series B:
1,810 (Boardwalk Apartments Project),
(FNMA Collateral),
2.950% due 09/01/2028+ ........................... 1,810
975 (Oxford Square Project),
(LOC: U.S. Bank),
3.100% due 12/01/2028+ ........................... 975
2,020 (Queen Anne Project),
(LOC: Bank of America N.A.),
2.970% due 12/01/2040+ ........................... 2,020
5,250 (Silver Creek Apartment Project),
2.960% due 12/20/2037+ ........................... 5,250
2,730 (Washington Terrace Senior Apartments
Project), (FNMA Collateral),
2.960% due 09/15/2037+ ........................... 2,730
----------
Total Taxable Municipal Bonds
(Cost $191,380) .................................. 191,380
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 3.7%
Federal National Mortgage Association, Note:
5,000 1.610% due 05/13/2005 ............................ 5,000
5,000 1.750% due 05/23/2005 ............................ 5,000
5,000 1.800% due 05/27/2005 ............................ 5,000
10,000 1.850% due 06/03/2005 ............................ 10,000
----------
Total U.S. Government Agency Obligations
(Cost $25,000) ................................... 25,000
----------
FUNDING AGREEMENT - 4.8%
(Cost $32,000)
32,000 New York Life Insurance,
2.780% due 08/03/2005*** ......................... 32,000++
----------
REPURCHASE AGREEMENT - 3.0%
(Cost $19,801)
19,801 Agreement with Morgan Stanley,
2.850% dated 04/29/05, to be
repurchased at $19,806,000 on
05/02/2005 (Collateralized by
U.S. Treasury Note, 2.000% due
07/15/2014, market value
$20,445,000) ..................................... 19,801
----------
TOTAL INVESTMENTS (Cost $672,243*) .......................... 100.5% 672,243
OTHER ASSETS (LIABILITIES) (NET) ............................ (0.5) (3,216)
----- ----------
NET ASSETS .................................................. 100.0% $ 669,027
===== ==========
- ----------
* Aggregate cost for federal tax purposes.
** Security acquired in a transaction exempt from registration under Rule
144A of the Securities Act of 1933, as amended.
*** Security is restricted and illiquid. It was acquired on August 4, 2004,
and has a value of $0.05 per Fund share at April 30, 2005.
+ Variable rate securities payable upon demand with not more than five
business days notice, and secured by bank letters of credit or guarantees
by certain corporations. The interest rate shown reflects the rate in
effect at April 30, 2005.
++ Floating rate security whose interest rate is reset periodically based on
an index.
+++ Rate represents discount rate on purchase date.
++ Represents fair value as determined in good faith under the direction of
the Board of Trustees.
GLOSSARY OF TERMS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Federal Guaranty Insurance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GO -- General Obligation
IDR -- Industrial Development Revenue
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
See Notes to Financial Statements.
76
Portfolio of Investments
TAX-EXEMPT MONEY MARKET FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- --------------------------------------------------------------------- ---------
MUNICIPAL BONDS AND NOTES - 99.8%
ARIZONA - 8.2%
$ 1,200 Apache County, Industrial Development
Authority, IDR, Tucson Electric Power
Company, (LOC: Toronto Dominion Bank),
2.950% due 12/01/2020+................................. $ 1,200
315 Maricopa County, Mesa Unified School
District No. 4, UTGO, (FSA Insured),
2.000% due 07/01/2005.................................. 315
325 Prescott, Municipal Property Corporation,
Lease Revenue, (MBIA Insured),
2.250% due 07/01/2005.................................. 325
---------
1,840
---------
CALIFORNIA - 8.9%
1,000 California State, UTGO,
Series A-3, (LOC: WestLB AG & JP
Morgan Chase Bank),
3.000% due 05/01/2033+................................. 1,000
1,000 Los Angeles, Regional Airports Improvement
Corporation, Lease Revenue, (LAX Two
Corporation Project), (LOC: Societe
Generale Group),
3.000% due 12/01/2025+................................. 1,000
---------
2,000
---------
COLORADO - 2.9%
645 Boulder County, Revenue Bonds, (The
Humane Society of Boulder Valley, Inc.
Project), (LOC: Wells Fargo Bank),
3.100% due 05/01/2020+................................. 645
---------
DISTRICT OF COLUMBIA - 1.3%
300 District of Columbia, IDR, (Resources for
the Future Inc. Project),
(LOC: Wachovia Bank),
3.050% due 08/01/2029+,++.............................. 300
---------
FLORIDA - 6.4%
400 Orange County, Health Facilities Authority,
Health Care Revenue, (Presbyterian
Retirement Community Project),
(LOC: Bank of America),
3.050% due 11/01/2028+................................. 400
700 Orange County, IDR, (Central Florida YMCA
Project), Series A, (LOC: Bank of America),
3.050% due 05/01/2027+................................. 700
330 St. Lucie County, Solid Waste System
Disposal Revenue, (AMBAC Insured),
2.000% due 09/01/2005.................................. 330
---------
1,430
---------
GEORGIA - 3.4%
750 Dahlonega, Downtown Development
Authority, Student Housing Revenue,
(North Georgia Student Housing LLC
Project), Series A, (LOC: Wachovia Bank),
2.990% due 06/01/2028+................................. 750
---------
HAWAII - 0.9%
200 Hawaii County, UTGO, Series C,
(MBIA Insured),
2.000% due 07/15/2005.................................. 200
---------
ILLINOIS - 9.1%
350 IIlinois Health Facilities Authority, Health
Care Revenue, (Blessing Hospital Project),
Series B, (FSA Insured),
3.040% due 11/15/2029+................................. 350
1,000 Illinois International Port District Facilities,
Revenue Bonds, (LOC: ABN AMRO Bank NV),
3.010% due 01/01/2023+................................. 1,000
400 Warren County, Health Care Revenue,
(Community Medical Center of Western
Illinois, Inc. Project), (LOC: Wells Fargo Bank),
3.100% due 12/01/2013+................................. 400
300 Will County, Community United School
District No. 365, UTGO, Series B,
(FSA Insured),
Zero coupon due 11/01/2005............................. 296
---------
2,046
---------
INDIANA - 0.7%
160 Terre Haute Sanitary District, Tax & Special
Revenue, (FGIC Insured),
2.500% due 07/01/2005.................................. 160
---------
IOWA - 5.5%
850 Iowa Finance Authority, Revenue Bonds,
Private School Facility, (Regis Schools
Project), (LOC: Allied Irish Bank PLC),
3.050% due 06/01/2019+................................. 850
385 Linn County, Revenue Bonds, (Goodwill
Industries of Southeast Iowa Project),
(LOC: Wells Fargo Bank),
3.100% due 12/01/2021+................................. 385
---------
1,235
---------
KANSAS - 5.4%
1,200 Shawnee, IDR, (Shawnee Village Association LP),
(LOC: JPMorgan Chase Bank),
3.000% due 12/01/2009+................................. 1,200
---------
KENTUCKY - 4.7%
415 Kenton County, Industrial Building Revenue,
(Baptist Convalescent Center Project),
(LOC: Fifth Third Bank),
3.150% due 07/01/2018+,++.............................. 415
500 Lexington-Fayette Urban County Government,
Educational Facilities Revenue, (Lexington
School Project), (LOC: Fifth Third Bank),
3.010% due 05/01/2025+................................. 500
140 Louisville & Jefferson County, Metropolitan
Sewer District, Sewer & Drainage System
Revenue, Series A, (FGIC Insured),
9.000% due 05/15/2005.................................. 140
---------
1,055
---------
See Notes to Financial Statements.
77
Portfolio of Investments (continued)
TAX-EXEMPT MONEY MARKET FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ------------------------------------------------------------------------ ---------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
NEW JERSEY - 0.8%
$ 180 New Jersey State Turnpike Authority,
Turnpike Revenue, Series A, (Unrefunded
Balance), (MBIA Insured),
5.500% due 01/01/2006..................................... $ 184
---------
NORTH CAROLINA - 1.7%
380 North Carolina Capital Facilities Finance
Agency, Capital Facilities Revenue,
(The O'Neal School Project),
(LOC: Wachovia Bank),
3.050% due 09/01/2023+.................................... 380
---------
NORTH DAKOTA - 3.5%
Grand Forks, Hospital Facilities Revenue,
(The United Hospital Obligated Group
Project), (LOC: LaSalle Bank):
400 3.000% due 12/01/2016+.................................... 400
390 3.000% due 12/01/2025+.................................... 390
---------
790
---------
OHIO - 5.4%
1,200 Mercer County, Healthcare Facilities
Revenue, (Grand Lake Cancer Center),
Series A, (LOC: Fifth Third Bank),
3.010% due 04/01/2023+.................................... 1,200
---------
OKLAHOMA - 1.8%
400 Oklahoma State Industrial Authority, Health
Care Revenue, (Tealridge Manor
Corporation Project), (LOC: Bank of America),
3.050% due 11/01/2018+.................................... 400
---------
OREGON - 2.1%
460 Port of Portland, Portland International
Airport Revenue, Series Fifteen A,
(FGIC Insured),
5.000% due 07/01/2005..................................... 463
---------
TENNESSEE - 2.2%
500 Metropolitan Government Nashville &
Davidson County, Industrial Development
Board, MFHR, (Chimneytop II Project),
(LOC: Bank of America),
2.940% due 09/01/2006+.................................... 500
---------
TEXAS - 6.5%
500 Ames, Higher Education Facilities
Corporation, Private Schools Revenue,
(Saint Gabriel's Catholic School Project),
(LOC: Allied Irish Bank PLC),
3.050% due 12/01/2033+.................................... 500
155 Houston, Independent School District Public
Facility, Lease Revenue, (Cesar E. Chavez
High School Project), Series A,
(AMBAC Insured),
Zero coupon due 09/15/2005................................ 154
795 Keller, Independent School District, UTGO,
(PSF-GTD Insured),
2.500% due 08/15/2005..................................... 795
---------
1,449
---------
UTAH - 2.8%
620 Salt Lake County, Training Facilities
Revenue, (Community Foundation for the
Disabled, Inc. Project), (LOC: Wells Fargo Bank),
3.100% due 08/01/2030+.................................... 620
---------
WASHINGTON - 15.6%
1,000 King County, Economic Enterprise
Corporation Revenue, (Puget Sound
Blood Center Project), (LOC: U.S. Bank),
3.050% due 04/01/2023+.................................... 1,000
200 King County, LTGO, Series A, (Pre-refunded
to 01/01/2006 @ $100),
5.000% due 01/01/2010..................................... 203
970 Seattle, Low Income Housing Assistance
Authority, Health Care Revenue,
(Bayview Manor Homes Project),
Series B, (LOC: U.S. Bank),
3.050% due 05/01/2019+.................................... 970
500 Seattle, Municipal Light & Power Revenue,
(FSA Insured),
4.000% due 12/01/2005..................................... 504
275 Washington State Health Care Facilities
Authority, Health Care Revenue, (Virginia
Mason Medical Center), Series A,
(MBIA Insured),
6.000% due 08/15/2005..................................... 278
335 Washington State Housing Finance
Commission, Elderly Housing Revenue,
(Riverview Retirement Project),
(LOC: U.S. Bank),
3.050% due 07/01/2022+.................................... 335
190 Washington State Public Power Supply
System, Nuclear Project No. 3 Revenue,
Series B, (FGIC Insured),
Zero coupon due 07/01/2005................................ 190
---------
3,480
---------
Total Municipal Bonds and Notes
(Cost $22,327)............................................ 22,327
---------
See Notes to Financial Statements.
78
Portfolio of Investments (continued)
TAX-EXEMPT MONEY MARKET FUND
April 30, 2005 (unaudited)
VALUE
SHARES (000s)
------ --------
INVESTMENT COMPANY SECURITIES - 0.3%
70,176 Dreyfus Tax-Exempt Cash
Management Fund...................................... $ 70
1,000 Wells Fargo Tax-Free Money
Market Fund.......................................... 1
---------
Total Investment Company Securities
(Cost $71)........................................... 71
---------
TOTAL INVESTMENTS (Cost $22,398*).......................... 100.1% 22,398
OTHER ASSETS (LIABILITIES) (NET)........................... (0.1) (14)
----- ---------
NET ASSETS................................................. 100.0% $ 22,384
===== =========
- --------
* Aggregate cost for federal tax purposes.
+ Variable rate securities payable upon demand with not more than five
business days notice, and secured by bank letters of credit or guarantees by
certain corporations. The interest rate shown reflects the rate in effect at
April 30, 2005.
++ Security is a private placement.
GLOSSARY OF TERMS
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Corporation
FSA -- Financial Security Assurance
IDR -- Industrial Development Revenue
LOC -- Letter of Credit
LTGO -- Limited Tax General Obligation
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
PSF-GTD -- Permanent School Fund Guaranteed
UTGO -- Unlimited Tax General Obligation
See Notes to Financial Statements.
79
Portfolio of Investments
CALIFORNIA MONEY FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- ---------
MUNICIPAL BONDS AND NOTES - 98.3%
CALIFORNIA - 97.4%
ABAG Financing Authority For Nonprofit
Corporation, Revenue Bonds:
$ 1,000 (Hamlin School Project), Series A,
(LOC: BNP Paribas SA),
3.010% due 08/01/2032+....................... $ 1,000
1,000 (Point Loma Nazarene University Project),
(LOC: Allied Irish Bank PLC),
3.080% due 10/01/2033+....................... 1,000
1,000 (Public Policy Institute of California
Project), Series A, (LOC: California State
Teachers Retirement System),
3.010% due 11/01/2031+....................... 1,000
Alameda County, IDR,AMT:
1,000 (Bema Electronic Manufacturing, Inc.
Project), Series A, (LOC: Comerica Bank),
3.090% due 04/01/2034+....................... 1,000
700 (Heat and Control Inc. Project), Series A,
(LOC: Wells Fargo Bank),
3.100% due 11/01/2025+....................... 700
905 (P.J.'s Lumber, Inc. Project),
(LOC: Comerica Bank),
3.090% due 12/01/2033+....................... 905
800 California Health Facilities Financing
Authority, Hospital & Nursing Home
Revenue, (Catholic Healthcare West Project),
Series J, (LOC: Bank One NA),
3.000% due 07/01/2033+....................... 800
900 California State Department of Water
Resources, Power Supply Revenue,
Series B-5, (LOC: Bayerische Landesbank
& Westdeutsche Landesbank),
3.000% due 05/01/2022+....................... 900
945 California State Economic Development
Financing Authority, IDR, (Wesflex Pipe
Manufacturing Project), AMT,
(LOC: Wells Fargo Bank),
3.080% due 04/01/2018+....................... 945
California State, UTGO:
600 Series A-3, (LOC: WestLB AG &
JP Morgan Chase Bank),
3.000% due 05/01/2033+....................... 600
1,200 Series C-1, (LOC: Bank of America),
3.000% due 05/01/2033+....................... 1,200
500 California Statewide Communities
Development Authority, Limited
Obligation Revenue, (The Painted Turtle
Gang Camp Foundation), (LOC: Allied
Irish Bank PLC),
3.010% due 04/01/2033+....................... 500
125 Compton, Unified School District, UTGO,
(Election of 2002), Series B, (MBIA Insured),
4.000% due 06/01/2005........................ 126
900 Contra Costa County Housing Authority,
MFHR, (Lakeshore Project), Series C,
(FHLMC Collateral),
2.930% due 11/15/2017+....................... 900
600 Hesperia, Public Financing Authority,
Revenue Bonds, (1993 Street
Improvement Project), (LOC: Bank of America),
3.000% due 10/01/2023+....................... 600
1,000 Hesperia, Unified School District, COP,
(Interim School Facility Funding Project),
(FSA Insured),
3.010% due 02/01/2028+....................... 1,000
300 Irvine Ranch, Water District, UTGO,
(Improvement District No. 105, 140,
240 & 250), (LOC: State Street Bank & Trust),
3.000% due 01/01/2021+....................... 300
Los Angeles, Community
Redevelopment Agency, MFHR:
700 (Promenade Towers Project),
(FHLMC Collateral),
3.000% due 04/01/2030+....................... 700
500 (Views at 270 Project), Series A, AMT,
(LOC: Citibank NA),
3.060% due 09/01/2019+....................... 500
900 Los Angeles, Wastewater System Revenue,
(Multimodal Project), Series C,
(FGIC Insured),
2.150% due 12/01/2031+....................... 900
150 Mountain View Los Altos, Unified High
School District, UTGO, Series B,
(FSA Insured),
2.000% due 05/01/2005........................ 150
1,000 Novato, MFHR, (Nova-Ro III Senior
Housing Project), (LOC: BNP Paribas SA),
3.010% due 10/01/2032+....................... 1,000
800 Pasadena, COP, (Rose Bowl Improvements
Project), (LOC: California State Teachers
Retirement System),
3.000% due 12/01/2016+....................... 800
230 Rancho Cucamonga, Redevelopment
Agency, Tax Allocation Revenue,
(Rancho Redevelopment Project),
(AMBAC Insured),
2.000% due 09/01/2005........................ 230
1,000 San Francisco City & County
Redevelopment Agency, Economic
Development Revenue, (Community
Facilities District No. 4),
(LOC: Bank of America),
3.010% due 08/01/2031+....................... 1,000
1,000 Santa Rosa, Wastewater Revenue Bond,
Series A, (LOC: Landesbank
Baden-Wuerttemberg),
3.010% due 09/01/2033+....................... 1,000
570 Vallejo, Public Financing Authority,
Revenue Bonds, (Glen Cove Project),
Series A, (AMBAC Insured),
1.500% due 09/02/2005........................ 570
---------
20,326
---------
See Notes to Financial Statements.
80
Portfolio of Investments (continued)
CALIFORNIA MONEY FUND
April 30, 2005 (unaudited)
PRINCIPAL
AMOUNT VALUE
(000s) (000s)
- ----------------------------------------------------------- ---------
MUNICIPAL BONDS AND NOTES - (CONTINUED)
PUERTO RICO - 0.9%
$ 180 Puerto Rico Commonwealth, Electric
Power Authority, Electric Power Revenue,
Series W, (MBIA Insured),
6.500% due 07/01/2005................................ $ 181
---------
Total Municipal Bonds and Notes
(Cost $20,507)....................................... 20,507
---------
SHARES
INVESTMENT COMPANY SECURITIES - 1.4%
257,189 Dreyfus Basic California Municipal
Money Market Fund.................................... 257
45,000 Wells Fargo California Tax-Free Money
Market Fund.......................................... 45
---------
Total Investment Company Securities
(Cost $302).......................................... 302
---------
TOTAL INVESTMENTS (Cost $20,809*).......................... 99.7% 20,809
OTHER ASSETS (LIABILITIES) (NET)........................... 0.3 59
----- ---------
NET ASSETS................................................. 100.0% $ 20,868
===== =========
- --------
* Aggregate cost for federal tax purposes.
+ Variable rate securities payable upon demand with not more than five
business days notice, and secured by bank letters of credit or guarantees by
certain corporations. The interest rate shown reflects the rate in effect at
April 30, 2005.
GLOSSARY OF TERMS
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
COP -- Certificate of Participation
FGIC -- Federal Guaranty Insurance Corporation
FHLMC -- Federal Home Loan Mortgage Corporation
FSA -- Financial Security Assurance
IDR -- Industrial Development Revenue
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
UTGO -- Unlimited Tax General Obligation
See Notes to Financial Statements.
81
Statements of Assets and Liabilities
WM GROUP OF FUNDS
April 30, 2005 (unaudited)
(In thousands)
EQUITY GROWTH & WEST COAST MID CAP SMALL CAP
REIT INCOME INCOME EQUITY STOCK GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND
--------- ----------- ---------- ---------- -------- ----------- ---------
ASSETS:
Investments, at value:
Securities................................. $ 381,275 $ 1,975,403 $2,400,018 $1,370,632 $794,750 $ 1,637,566 $ 321,531
Investments held as collateral
for securities loaned.................... 12,539 81,609 115,720 117,560 59,373 69,998 51,712
--------- ----------- ---------- ---------- -------- ----------- ---------
Total Investments (a)...................... 393,814 2,057,012 2,515,738 1,488,192 854,123 1,707,564 373,243
Cash......................................... -- 456 -- -- -- -- --
Unrealized appreciation of forward
foreign currency contracts................. -- -- -- -- -- 4 --
Dividends and/or interest
receivable................................. 551 4,249 3,555 532 599 939 597
Receivable for Fund shares sold.............. 279 8,087 3,457 3,097 659 393 182
Receivable for investment securities
sold....................................... -- -- -- 2,210 -- 12,661 --
Prepaid expenses............................. 8 41 52 32 18 39 7
--------- ----------- ---------- ---------- -------- ----------- ---------
Total Assets............................. 394,652 2,069,845 2,522,802 1,494,063 855,399 1,721,600 374,029
--------- ----------- ---------- ---------- -------- ----------- ---------
LIABILITIES:
Payable upon return of securities loaned..... 12,539 81,609 115,720 117,560 59,373 69,998 51,712
Unrealized depreciation of forward
foreign currency contracts................. -- -- -- -- -- 14 --
Payable for Fund shares redeemed 94 1,285 689 942 152 590 19
Payable for investment securities
purchased.................................. 2,008 2,643 4,662 4,414 3,267 18,714 5,334
Investment advisory fee payable.............. 239 822 1,003 583 493 1,031 225
Shareholder servicing and distribution
fees payable............................... 12 323 196 270 33 111 4
Transfer agent fees payable.................. 2 49 76 78 10 90 1
Due to custodian............................. --* -- 4 4 1 67 --*
Accrued printing and postage
expenses................................... 4 148 246 234 34 317 13
Accrued legal and audit fees................. 22 44 53 39 30 44 23
Accrued expenses and other
payables................................... 1 40 68 30 17 38 8
--------- ----------- ---------- ---------- -------- ----------- ---------
Total Liabilities........................ 14,921 86,963 122,717 124,154 63,410 91,014 57,339
--------- ----------- ---------- ---------- -------- ----------- ---------
NET ASSETS................................... $ 379,731 $ 1,982,882 $2,400,085 $1,369,909 $791,989 $ 1,630,586 $ 316,690
========= =========== ========== ========== ======== =========== =========
(a) Investments, at cost..................... $ 296,920 $ 1,734,984 $2,115,910 $1,192,713 $730,828 $ 1,642,817 $ 345,531
========= =========== ========== ========== ======== =========== =========
- ------------
* Amount represents less than $500.
See Notes to Financial Statements.
82
Statements of Assets and Liabilities (continued)
WM GROUP OF FUNDS
April 30, 2005 (unaudited)
(In thousands)
U.S.
SMALL CAP INTERNATIONAL SHORT TERM GOVERNMENT HIGH
GROWTH GROWTH INCOME SECURITIES INCOME YIELD
FUND FUND FUND FUND FUND FUND
---------- ------------- ---------- ---------- ---------- ----------
ASSETS:
Investments, at value:
Securities................................. $ 281,044 $ 695,169 $ 272,091 $1,760,090 $1,177,254 $ 756,559
Investments held as collateral
for securities loaned.................... 26,297 95,791 -- -- -- --
---------- ------------- ---------- ---------- ---------- ----------
Total Investments (a)...................... 307,341 790,960 272,091 1,760,090 1,177,254 756,559
Cash.......................................... -- 9 -- -- 454 --
Unrealized appreciation of forward
foreign currency contracts................. -- 645 -- -- -- --
Dividends and/or interest
receivable................................. 30 3,073 3,097 8,865 14,037 11,263
Receivable for Fund shares sold............... 601 1,056 347 2,388 1,110 714
Receivable for investment
securities sold............................ 2,962 512 1 7 -- 647
Variation margin.............................. -- -- 25 -- -- --
Prepaid expenses.............................. 9 15 6 37 27 18
---------- ------------- ---------- ---------- ---------- ----------
Total Assets............................... 310,943 796,270 275,567 1,771,387 1,192,882 769,201
---------- ------------- ---------- ---------- ---------- ----------
LIABILITIES:
Payable upon return of securities loaned...... 26,297 95,791 -- -- -- --
Unrealized depreciation of forward
foreign currency contracts................. -- 270 -- -- -- --
Payable for Fund shares redeemed............ 241 114 4,763 767 703 717
Payable for when-issued securities purchased.. -- -- -- 29,063 -- --
Payable for investment securities purchased... 4,165 4,611 -- -- -- --
Investment advisory fee payable............... 202 1,070 109 702 487 342
Shareholder servicing and distribution
fees payable............................... 25 14 47 146 155 112
Transfer agent fees payable................... 26 7 -- 29 27 8
Dividends payable............................. -- -- 68 204 443 584
Due to custodian.............................. 3 -- 1 2 -- 143
Accrued printing and postage expenses......... 94 31 41 120 110 48
Accrued legal and audit fees.................. 24 28 22 42 36 31
Accrued expenses and other payables........... 7 16 7 50 25 11
---------- ------------- ---------- ---------- ---------- ----------
Total Liabilities.......................... 31,084 101,952 5,058 31,125 1,986 1,996
---------- ------------- ---------- ---------- ---------- ----------
NET ASSETS.................................... $ 279,859 $ 694,318 $ 270,509 $1,740,262 $1,190,896 $ 767,205
========== ============= ========== ========== ========== ==========
(a) Investments, at cost...................... $ 321,938 $ 702,469 $ 272,193 $1,760,326 $1,155,540 $ 729,838
========== ============= ========== ========== ========== ==========
See Notes to Financial Statements.
83
Statements of Assets and Liabilities (continued)
WM GROUP OF FUNDS
April 30, 2005 (unaudited)
(In thousands)
CALIFORNIA
INSURED TAX-EXEMPT
TAX-EXEMPT CALIFORNIA INTERMEDIATE MONEY MONEY CALIFORNIA
BOND MUNICIPAL MUNICIPAL MARKET MARKET MONEY
FUND FUND FUND FUND FUND FUND
---------- ---------- ------------ -------- ---------- ----------
ASSETS:
Investments, at value (a)....................... $ 214,854 $ 412,892 $ 141,162 $672,243 $ 22,398 $ 20,809
Cash............................................ 120 46 7 23 -- --
Dividends and/or interest receivable............ 3,205 5,161 1,746 3,187 82 61
Receivable for Fund shares sold................. 56 593 24 543 --* 34
Receivable for investment securities sold....... 1,785 1,293 1,607 -- -- --
Variation margin................................ 64 -- -- -- -- --
Prepaid expenses................................ 5 10 3 16 1 --*
---------- ---------- ------------ -------- ---------- ----------
Total Assets................................. 220,089 419,995 144,549 676,012 22,481 20,904
---------- ---------- ------------ -------- ---------- ----------
LIABILITIES:
Payable for Fund shares redeemed................ 85 861 181 6,464 68 5
Payable for when-issued securities purchased.... -- -- 2,733 -- -- --
Payable for investment securities purchased..... 1,770 -- -- -- -- --
Investment advisory fee payable................. 89 171 58 248 6 5
Shareholder servicing and distribution
fees payable................................. 66 199 75 38 -- --
Transfer agent fees payable..................... 8 11 3 26 1 1
Dividends payable............................... 263 481 95 24 1 --*
Due to custodian................................ -- -- -- -- --* 1
Accrued printing and postage expenses........... 59 45 2 143 4 6
Accrued legal and audit fees.................... 21 24 20 28 17 17
Accrued expenses and other payables............. 3 6 1 14 --* 1
---------- ---------- ------------ -------- ---------- ----------
Total Liabilities............................ 2,364 1,798 3,168 6,985 97 36
---------- ---------- ------------ -------- ---------- ----------
NET ASSETS...................................... $ 217,725 $ 418,197 $ 141,381 $669,027 $ 22,384 $ 20,868
========== ========== ============ ======== ========== ==========
(a) Investments, at cost........................ $ 198,005 $ 389,728 $ 137,285 $672,243 $ 22,398 $ 20,809
========== ========== ============ ======== ========== ==========
- -----------
* Amount represents less than $500.
See Notes to Financial Statements.
84
Statements of Assets and Liabilities (continued)
WM GROUP OF FUNDS
April 30, 2005 (unaudited)
(In thousands)
EQUITY GROWTH & WEST COAST MID CAP SMALL CAP
REIT INCOME INCOME EQUITY STOCK GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND
--------- ----------- ----------- ----------- ---------- ----------- ---------
NET ASSETS CONSIST OF:
Undistributed net investment
income .............................. $ 2,195 $ 3,629 $ 9,525 $ 1,498 $ 6,536 $ 1,264 $ 173
Accumulated net realized gain/(loss)
on investment transactions........... 3,008 17,815 (74,235) 20,180 30,449 (334,710) 15,663
Net unrealized appreciation
of investments....................... 96,894 322,028 399,828 295,479 123,295 64,737 27,710
Paid-in capital....................... 277,634 1,639,410 2,064,967 1,052,752 631,709 1,899,295 273,144
--------- ----------- ----------- ----------- ---------- ----------- ---------
Total Net Assets.................... $ 379,731 $ 1,982,882 $ 2,400,085 $ 1,369,909 $ 791,989 $ 1,630,586 $ 316,690
========= =========== =========== =========== ========== =========== =========
NET ASSETS:
Class A Shares........................ $ 14,020 $ 620,152 $ 584,451 $ 649,524 $ 69,976 $ 121,984 $ 8,183
========= =========== =========== =========== ========== =========== =========
Class B Shares........................ $ 7,746 $ 182,596 $ 88,654 $ 150,133 $ 20,957 $ 100,162 $ 1,974
========= =========== =========== =========== ========== =========== =========
Class C Shares........................ $ 4,577 $ 66,134 $ 1,663 $ 11,255 $ 2,198 $ 2,498 $ 737
========= =========== =========== =========== ========== =========== =========
Class I Shares........................ $ 353,388 $ 1,114,000 $ 1,725,317 $ 558,997 $ 698,858 $ 1,405,942 $ 305,796
========= =========== =========== =========== ========== =========== =========
SHARES OUTSTANDING:
Class A Shares........................ 875 32,614 24,247 18,533 4,014 8,324 701
========= =========== =========== =========== ========== =========== =========
Class B Shares........................ 485 9,669 3,812 4,772 1,262 7,597 170
========= =========== =========== =========== ========== =========== =========
Class C Shares........................ 286 3,524 72 357 132 188 63
========= =========== =========== =========== ========== =========== =========
Class I Shares........................ 22,012 58,592 71,365 15,817 39,671 92,350 26,099
========= =========== =========== =========== ========== =========== =========
CLASS A SHARES:**
Net asset value per share of
beneficial interest
outstanding *........................ $ 16.02 $ 19.01 $ 24.10 $ 35.05 $ 17.43 $ 14.65 $ 11.68
========= =========== =========== =========== ========== =========== =========
Maximum sales charge.................. 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50%
========= =========== =========== =========== ========== =========== =========
Maximum offering price per
share of beneficial interest
outstanding.......................... $ 16.95 $ 20.12 $ 25.50 $ 37.09 $ 18.44 $ 15.50 $ 12.36
========= =========== =========== =========== ========== =========== =========
CLASS B SHARES:**
Net asset value and offering price
per share of beneficial interest
outstanding *........................ $ 15.97 $ 18.89 $ 23.26 $ 31.46 $ 16.60 $ 13.18 $ 11.60
========= =========== =========== =========== ========== =========== =========
CLASS C SHARES:**
Net asset value and offering price
per share of beneficial interest
outstanding *........................ $ 15.97 $ 18.77 $ 22.94 $ 31.54 $ 16.64 $ 13.29 $ 11.62
========= =========== =========== =========== ========== =========== =========
CLASS I SHARES:**
Net asset value, offering and
redemption price per share of
beneficial interest outstanding...... $ 16.05 $ 19.01 $ 24.18 $ 35.34 $ 17.62 $ 15.22 $ 11.72
========= =========== =========== =========== ========== =========== =========
- ----------
* Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
** Net asset value and maximum offering price are not shown in thousands.
See Notes to Financial Statements.
85
Statements of Assets and Liabilities (continued)
WM GROUP OF FUNDS
April 30, 2005 (unaudited)
(In thousands)
U.S.
SMALL CAP INTERNATIONAL SHORT TERM GOVERNMENT HIGH
GROWTH GROWTH INCOME SECURITIES INCOME YIELD
FUND FUND FUND FUND FUND FUND
---------- ------------- ---------- ----------- ----------- ---------
NET ASSETS CONSIST OF:
Undistributed net investment income/
(accumulated net investment loss)............ $ (1,180) $ 1,207 $ (36) $ (3,129) $ (1,408) $ (404)
Accumulated net realized loss
on investment transactions................... (65,223) (26,425) (4,305) (17,463) (10,701) (32,862)
Net unrealized appreciation/(depreciation)
of investments .............................. (14,597) 88,864 (184) (236) 21,714 26,721
Paid-in capital............................... 360,859 630,672 275,034 1,761,090 1,181,291 773,750
--------- ------------ ---------- ----------- ----------- ---------
Total Net Assets............................ $ 279,859 $ 694,318 $ 270,509 $ 1,740,262 $ 1,190,896 $ 767,205
========= ============ ========== =========== =========== =========
NET ASSETS:
Class A Shares................................ $ 76,809 $ 45,851 $ 42,910 $ 132,235 $ 146,261 $ 99,454
========= ============ ========== =========== =========== =========
Class B Shares................................ $ 9,286 $ 4,391 $ 26,800 $ 137,994 $ 139,653 $ 75,072
========= ============ ========== =========== =========== =========
Class C Shares................................ $ 669 $ 841 $ 16,767 $ 6,245 $ 10,986 $ 35,169
========= ============ ========== =========== =========== =========
Class I Shares................................ $ 193,095 $ 643,235 $ 184,032 $ 1,463,788 $ 893,996 $ 557,510
========= ============ ========== =========== =========== =========
SHARES OUTSTANDING:
Class A Shares................................ 6,519 4,764 18,347 12,295 15,788 12,377
========= ============ ========== =========== =========== =========
Class B Shares................................ 899 476 11,458 12,839 15,028 9,299
========= ============ ========== =========== =========== =========
Class C Shares................................ 64 92 7,165 582 1,182 4,358
========= ============ ========== =========== =========== =========
Class I Shares................................ 15,869 66,558 78,674 136,069 96,307 69,489
========= ============ ========== =========== =========== =========
CLASS A SHARES:**
Net asset value per share of beneficial
interest outstanding *....................... $ 11.78 $ 9.62 $ 2.34 $ 10.76 $ 9.26 $ 8.04
========= ============ ========== =========== =========== =========
Maximum sales charge.......................... 5.50% 5.50% 3.50% 4.50% 4.50% 4.50%
========= ============ ========== =========== =========== =========
Maximum offering price per share of
beneficial interest outstanding.............. $ 12.47 $ 10.18 $ 2.42 $ 11.27 $ 9.70 $ 8.42
========= ============ ========== =========== =========== =========
CLASS B SHARES:**
Net asset value and offering price per share
of beneficial interest outstanding *......... $ 10.32 $ 9.23 $ 2.34 $ 10.75 $ 9.29 $ 8.07
========= ============ ========== =========== =========== =========
CLASS C SHARES:**
Net asset value and offering price per share
of beneficial interest outstanding *......... $ 10.46 $ 9.12 $ 2.34 $ 10.73 $ 9.29 $ 8.07
========= ============ ========== =========== =========== =========
CLASS I SHARES:**
Net asset value,offering and redemption
price per share of beneficial interest
outstanding.................................. $ 12.17 $ 9.66 $ 2.34 $ 10.76 $ 9.28 $ 8.02
========= ============ ========== =========== =========== =========
- ----------
* Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge. and/or applicable redemption fees for the
International Growth Fund.
** Net asset value and maximum offering price are not shown in thousands.
See Notes to Financial Statements.
86
Statements of Assets and Liabilities (continued)
WM GROUP OF FUNDS
April 30, 2005 (unaudited)
(In thousands)
CALIFORNIA
INSURED TAX-EXEMPT
TAX-EXEMPT CALIFORNIA INTERMEDIATE MONEY MONEY CALIFORNIA
BOND MUNICIPAL MUNICIPAL MARKET MARKET MONEY
FUND FUND FUND FUND FUND FUND
----------- ---------- ------------- --------- ----------- ----------
NET ASSETS CONSIST OF:
Undistributed net investment
income....................... $ 186 $ 145 $ 60 $ - $ - $ -
Accumulated net realized
gain/(loss) on investment
transactions................. 1,842 3,311 64 (45) -* -*
Net unrealized appreciation
of investments............... 16,709 23,164 3,877 - - -
Paid-in capital............... 198,988 391,577 137,380 669,072 22,384 20,868
----------- ---------- ------------- --------- ----------- ----------
Total Net Assets............ $ 217,725 $ 418,197 $ 141,381 $ 669,027 $ 22,384 $ 20,868
=========== ========== ============= ========= =========== ==========
NET ASSETS:
Class A Shares................ $ 182,292 $ 233,797 $ 66,836 $ 533,175 $ 22,384 $ 20,868
=========== ========== ============= ========= =========== ==========
Class B Shares................ $ 32,877 $ 179,700 $ 66,132 $ 39,396
=========== ========== ============= =========
Class C Shares................ $ 2,556 $ 4,700 $ 8,413 $ 7,023
=========== ========== ============= =========
Class I Shares................ $ 89,433
=========
SHARES OUTSTANDING:
Class A Shares................ 23,306 20,501 6,055 533,196 22,384 20,914
=========== ========== ============= ========= =========== ==========
Class B Shares................ 4,203 15,756 5,991 39,392
=========== ========== ============= =========
Class C Shares................ 327 412 762 7,023
=========== ========== ============= =========
Class I Shares................ 89,446
=========
CLASS A SHARES:***
Net asset value per share of
beneficial interest
outstanding ** .............. $ 7.82 $ 11.40 $ 11.04 $ 1.00 $ 1.00 $ 1.00
=========== ========== ============= ========= =========== ==========
Maximum sales charge.......... 4.50% 4.50% 4.50%
=========== ========== =============
Maximum offering price per
share of beneficial
interest outstanding......... $ 8.19 $ 11.94 $ 11.56
=========== ========== =============
CLASS B SHARES:***
Net asset value and offering
price per share of
beneficial interest
outstanding **............... $ 7.82 $ 11.40 $ 11.04 $ 1.00
=========== ========== ============= =========
CLASS C SHARES:***
Net asset value and offering
price per share of
beneficial interest
outstanding **............... $ 7.82 $ 11.40 $ 11.04 $ 1.00
=========== ========== ============= =========
CLASS I SHARES:***
Net asset value,offering and
redemption price per share
of beneficial interest
outstanding.................. $ 1.00
=========
- ----------------
* Amount represents less than $500.
** Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
*** Net asset value and maximum offering price are not shown in thousands.
See Notes to Financial Statements.
87
Statements of Operations
WM GROUP OF FUNDS
For the Six Months Ended April 30, 2005 (unaudited)
(In thousands)
EQUITY GROWTH & WEST COAST MID CAP SMALL CAP
REIT INCOME INCOME EQUITY STOCK GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND
--------- ---------- --------- ---------- --------- --------- ----------
INVESTMENT INCOME:
Dividends.......................... $ 8,443 $ 26,339 $ 27,373 $ 14,241 $ 10,351 $ 15,370 $ 2,378
Interest........................... 242 3,584 1,344 512 743 751 299
Foreign withholding taxes.......... - (247) (206) (4) (25) (56) (177)
Securities lending income.......... 237 271 94 84 134 57 227
--------- ---------- --------- ---------- --------- --------- ----------
Total investment income........ 8,922 29,947 28,605 14,833 11,203 16,122 2,727
--------- ---------- --------- ---------- --------- --------- ----------
EXPENSES:
Investment advisory fee............ 1,418 4,560 5,792 3,527 2,876 6,247 1,310
Custodian fees..................... 6 24 30 25 13 48 8
Legal and audit fees............... 19 39 45 33 26 38 20
Registration and filing fees....... 23 71 51 38 29 25 28
Printing and postage expenses...... 5 168 220 233 39 333 15
Other.............................. 25 116 153 97 53 117 21
Shareholder servicing and
distribution fees:
Class A Shares................... 15 668 742 823 82 158 8
Class B Shares................... 35 816 475 754 104 544 6
Class C Shares................... 21 247 8 52 10 11 3
Transfer agent fees:
Class A Shares................... 13 184 252 276 26 223 4
Class B Shares................... 8 179 178 215 36 303 2
Class C Shares................... 3 28 3 12 2 4 1
--------- ---------- --------- ---------- --------- --------- ----------
Total expenses................. 1,591 7,100 7,949 6,085 3,296 8,051 1,426
Fees reduced by custodian credits -* (2) (1) -* (1) (15) (1)
--------- ---------- --------- ---------- --------- --------- ----------
Net expenses................... 1,591 7,098 7,948 6,085 3,295 8,036 1,425
--------- ---------- --------- ---------- --------- --------- ----------
NET INVESTMENT INCOME.............. 7,331 22,849 20,657 8,748 7,908 8,086 1,302
--------- ---------- --------- ---------- --------- --------- ----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain/(loss) on:
Security transactions............. 3,013 23,318 24,289 21,003 33,770 52,159 14,741
Forward foreign currency
contracts and foreign
currency transactions............ - - - - - (107) (23)
--------- ---------- --------- ---------- --------- --------- ----------
Net realized gain on
investment transactions.......... 3,013 23,318 24,289 21,003 33,770 52,052 14,718
--------- ---------- --------- ---------- --------- --------- ----------
Net change in unrealized
appreciation/depreciation of:
Securities........................ 12,045 79,510 37,439 (10,403) 146 (30,333) 9,031
Forward foreign currency
contracts........................ - - - - - 49 -
Foreign currency, futures
contracts and other assets and
liabilities...................... - - - - - (1) (3)
--------- ---------- --------- ---------- --------- --------- ----------
Net change in unrealized
appreciation/depreciation
of investment transactions....... 12,045 79,510 37,439 (10,403) 146 (30,285) 9,028
--------- ---------- --------- ---------- --------- --------- ----------
Net realized and unrealized
gain on investments............... 15,058 102,828 61,728 10,600 33,916 21,767 23,746
--------- ---------- --------- ---------- --------- --------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS......... $ 22,389 $ 125,677 $ 82,385 $ 19,348 $ 41,824 $ 29,853 $ 25,048
========= ========== ========= ========== ========= ========= ==========
- --------------
* Amount represents less than $500.
See Notes to Financial Statements.
88
Statements of Operations (continued)
WM GROUP OF FUNDS
For the Six Months Ended April 30, 2005 (unaudited)
(In thousands)
U.S.
SMALL CAP INTERNATIONAL SHORT TERM GOVERNMENT HIGH
GROWTH GROWTH INCOME SECURITIES INCOME YIELD
FUND FUND FUND FUND FUND FUND
---------- ------------- ----------- ---------- ----------- -----------
INVESTMENT INCOME:
Dividends...................................... $ 561 $ 8,065 $ -- $ -- $ 162 $ 1,223
Interest....................................... 60 354 5,535 38,453 33,040 27,521
Foreign withholding taxes...................... (4) (907) -- -- -- --
Securities lending income...................... 267 243 -- -- -- --
---------- ------------- ----------- ---------- ----------- -----------
Total investment income..................... 884 7,755 5,535 38,453 33,202 28,744
---------- ------------- ----------- ---------- ----------- -----------
EXPENSES:
Investment advisory fee........................ 1,495 2,754 657 4,013 2,907 2,055
Custodian fees................................. 14 221 6 29 20 18
Legal and audit fees........................... 21 25 19 36 41 37
Registration and filing fees................... 20 26 21 42 32 32
Printing and postage expenses.................. 145 29 40 111 88 47
Other.......................................... 29 67 23 118 88 55
Shareholder servicing and distribution fees:
Class A Shares................................ 114 55 63 162 182 121
Class B Shares................................ 59 20 145 732 723 391
Class C Shares................................ 4 3 90 30 57 184
Transfer agent fees:
Class A Shares................................ 128 45 30 91 91 33
Class B Shares................................ 38 11 21 93 80 38
Class C Shares................................ 2 1 8 3 6 14
---------- ------------- ----------- ---------- ----------- -----------
Total expenses.............................. 2,069 3,257 1,123 5,460 4,315 3,025
Fees waived by the transfer agent.............. -- -- (59) -- -- --
Fees reduced by custodian credits.............. (5) --* (1) (1) (3) (3)
---------- ------------- ----------- ---------- ----------- -----------
Net expenses................................ 2,064 3,257 1,063 5,459 4,312 3,022
---------- ------------- ----------- ---------- ----------- -----------
NET INVESTMENT INCOME/(LOSS)................... (1,180) 4,498 4,472 32,994 28,890 25,722
---------- ------------- ----------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS:
Net realized gain/(loss) on:
Security transactions......................... (45,793) 10,925 181 988 4,216 7,098
Forward foreign currency contracts
and foreign currency transactions............ -- (393) -- -- -- --
Futures contracts............................. -- -- 115 -- -- --
---------- ------------- ----------- ---------- ----------- -----------
Net realized gain/(loss) on
investment transactions...................... (45,793) 10,532 296 988 4,216 7,098
---------- ------------- ----------- ---------- ----------- -----------
Net change in unrealized
appreciation/depreciation of:
Securities.................................... 19,203 14,653 (4,460) (15,566) (26,955) (29,575)
Forward foreign currency contracts............ -- 922 -- -- -- --
Foreign currency, futures contracts and
other and liabilities....................... -- (44) 27 -- -- --
---------- ------------- ----------- ---------- ----------- -----------
Net change in unrealized appreciation/
depreciation of investment transactions..... 19,203 15,531 (4,433) (15,566) (26,955) (29,575)
---------- ------------- ----------- ---------- ----------- -----------
Net realized and unrealized gain/(loss) on
investments................................... (26,590) 26,063 (4,137) (14,578) (22,739) (22,477)
---------- ------------- ----------- ---------- ----------- -----------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS..................... $ (27,770) $ 30,561 $ 335 $ 18,416 $ 6,151 $ 3,245
========== ============= =========== ========== =========== ===========
- ----------
* Amount represents less than $500.
See Notes to Financial Statements.
89
Statements of Operations (continued)
WM GROUP OF FUNDS
For the Six Months Ended April 30, 2005 (unaudited)
(In thousands)
CALIFORNIA
INSURED TAX-EXEMPT
TAX-EXEMPT CALIFORNIA INTERMEDIATE MONEY MONEY CALIFORNIA
BOND MUNICIPAL MUNICIPAL MARKET MARKET MONEY
FUND FUND FUND FUND FUND FUND
---------- ---------- ------------ --------- ---------- ----------
INVESTMENT INCOME:
Dividends ............................................ $ -- $ -- $ -- $ -- $ 4 $ 3
Interest ............................................. 5,536 10,669 2,805 8,054 216 188
-------- -------- -------- -------- -------- --------
Total investment income ......................... 5,536 10,669 2,805 8,054 220 191
-------- -------- -------- -------- -------- --------
EXPENSES:
Investment advisory fee .............................. 546 1,051 358 1,524 54 46
Custodian fees ....................................... 4 10 3 13 1 1
Legal and audit fees ................................. 19 20 17 23 15 15
Registration and filing fees ......................... 16 14 14 32 9 5
Printing and postage expenses ........................ 40 44 9 186 7 8
Other ................................................ 14 37 15 52 4 3
Shareholder servicing and distribution fees:
Class A Shares ...................................... 227 286 83 -- -- --
Class B Shares ...................................... 170 930 340 216 -- --
Class C Shares ...................................... 14 26 43 32 -- --
Transfer agent fees:
Class A Shares ...................................... 43 44 9 151 7 9
Class B Shares ...................................... 6 30 12 36 -- --
Class C Shares ...................................... 1 1 3 5 -- --
-------- -------- -------- -------- -------- --------
Total expenses .................................. 1,100 2,493 906 2,270 97 87
Fees waived by the investment advisor ................ -- -- -- -- (7) (16)
Fees reduced by custodian credits .................... (1) (3) (1) (1) --* --*
-------- -------- -------- -------- -------- --------
Net expenses .................................... 1,099 2,490 905 2,269 90 71
-------- -------- -------- -------- -------- --------
NET INVESTMENT INCOME ................................ 4,437 8,179 1,900 5,785 130 120
-------- -------- -------- -------- -------- --------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain on:
Security transactions ............................... 1,784 3,245 62 -- -- --
Futures contracts ................................... 42 -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net realized gain on investment
transactions ....................................... 1,826 3,245 62 -- -- --
-------- -------- -------- -------- -------- --------
Net change in unrealized
appreciation/depreciation of:
Securities ......................................... (2,960) (2,663) (1,373) -- -- --
Foreign currency, futures contracts and other
assets and liabilities ........................... (86) -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net change in unrealized appreciation/ depreciation
of investment transactions ......................... (3,046) (2,663) (1,373) -- -- --
-------- -------- -------- -------- -------- --------
Net realized and unrealized gain/(loss) on
investments ......................................... (1,220) 582 (1,311) -- -- --
-------- -------- -------- -------- -------- --------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS .......................................... $ 3,217 $ 8,761 $ 589 $ 5,785 $ 130 $ 120
======== ======== ======== ======== ======== ========
- ----------
* Amount represents less than $500.
See Notes to Financial Statements.
90
Statements of Changes in Net Assets
WM GROUP OF FUNDS
For the Six Months Ended April 30, 2005 (unaudited)
(In thousands)
EQUITY GROWTH & WEST COAST MID CAP SMALL CAP
REIT INCOME INCOME EQUITY STOCK GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND
---------- ------------ ------------ ------------ ----------- ------------ -----------
Net investment income ................ $ 7,331 $ 22,849 $ 20,657 $ 8,748 $ 7,908 $ 8,086 $ 1,302
Net realized gain on
investment transactions ............. 3,013 23,318 24,289 21,003 33,770 52,052 14,718
Net change in unrealized
appreciation/depreciation of
investments ......................... 12,045 79,510 37,439 (10,403) 146 (30,285) 9,028
--------- ----------- ----------- ----------- ---------- ----------- ----------
Net increase in net assets
resulting from operations ........... 22,389 125,677 82,385 19,348 41,824 29,853 25,048
Distributions to shareholders from:
Net investment income:
Class A Shares ..................... (193) (6,122) (6,506) (3,698) (100) (460) (55)
Class B Shares ..................... (83) (1,152) (25) -- -- (280) (6)
Class C Shares ..................... (54) (428) (5) (6) -- (7) (2)
Class I Shares ..................... (5,875) (13,031) (21,264) (5,055) (2,896) (6,133) (2,805)
Net realized gains on investments:
Class A Shares ..................... (223) -- -- (7,554) (2,119) -- --
Class B Shares ..................... (135) -- -- (1,922) (732) -- --
Class C Shares ..................... (80) -- -- (123) (69) -- --
Class I Shares ..................... (6,776) -- -- (6,332) (21,861) -- --
Net increase/(decrease) in net assets
from Fund share transactions:
Class A Shares ..................... 4,404 150,879 (15,738) 29,038 9,267 (4,773) 5,025
Class B Shares ..................... 1,524 28,571 (10,343) 9,522 674 (12,208) 1,300
Class C Shares ..................... 818 30,043 75 2,381 404 506 295
Class I Shares ..................... 28,003 142,830 296,692 46,788 70,327 104,658 15,557
--------- ----------- ----------- ----------- ---------- ----------- ----------
Net increase in net assets ........... 43,719 457,267 325,271 82,387 94,719 111,156 44,357
NET ASSETS:
Beginning of period .................. 336,012 1,525,615 2,074,814 1,287,522 697,270 1,519,430 272,333
--------- ----------- ----------- ----------- ---------- ----------- ----------
End of period ........................ $ 379,731 $ 1,982,882 $ 2,400,085 $ 1,369,909 $ 791,989 $ 1,630,586 $ 316,690
========= =========== =========== =========== ========== =========== ==========
Undistributed net investment income at
end of period ........................
$ 2,195 $ 3,629 $ 9,525 $ 1,498 $ 6,536 $ 1,264 $ 173
========= =========== =========== =========== ========== =========== ==========
See Notes to Financial Statements.
91
Statements of Changes in Net Assets (continued)
WM GROUP OF FUNDS
For the Six Months Ended April 30, 2005 (unaudited)
(In thousands)
U.S.
SMALL CAP INTERNATIONAL SHORT TERM GOVERNMENT HIGH
GROWTH GROWTH INCOME SECURITIES INCOME YIELD
FUND FUND FUND FUND FUND FUND
------------ ------------- ------------ ------------ ------------ ------------
Net investment income/(loss) .................. $ (1,180) $ 4,498 $ 4,472 $ 32,994 $ 28,890 $ 25,722
Net realized gain/(loss) on investment
transactions .................................. (45,793) 10,532 296 988 4,216 7,098
Net change in unrealized appreciation/
depreciation of investments .................. 19,203 15,531 (4,433) (15,566) (26,955) (29,575)
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in net assets
resulting from operations ..................... (27,770) 30,561 335 18,416 6,151 3,245
Distributions to shareholders from:
Net investment income:
Class A Shares ............................. -- (363) (842) (2,777) (3,726) (3,369)
Class B Shares ............................. -- -- (379) (2,600) (3,169) (2,447)
Class C Shares ............................. -- (4) (235) (108) (251) (1,153)
Class I Shares ............................. -- (7,523) (3,130) (30,930) (23,637) (20,138)
Net realized gains on investments:
Class A Shares ............................. -- -- -- -- -- --
Class B Shares ............................. -- -- -- -- -- --
Class C Shares ............................. -- -- -- -- -- --
Class I Shares ............................. -- -- -- -- -- --
Net increase/(decrease) in net assets from Fund
share transactions:
Class A Shares ............................. (8,566) 5,408 (10,370) (1,174) 1,626 17,481
Class B Shares ............................. (1,927) 608 (4,542) (18,136) (9,379) (2,684)
Class C Shares ............................. (124) 389 (1,915) 32 (354) 2,976
Class I Shares ............................. (25,307) 82,826 17,776 218,360 77,569 48,655
Redemption fees ............................ -- 6 -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in net assets ......... (63,694) 111,908 (3,302) 181,083 44,830 42,566
NET ASSETS:
Beginning of period ........................... 343,553 582,410 273,811 1,559,179 1,146,066 724,639
----------- ----------- ----------- ----------- ----------- -----------
End of period ................................. $ 279,859 $ 694,318 $ 270,509 $ 1,740,262 $ 1,190,896 $ 767,205
=========== =========== =========== =========== =========== ===========
Undistributed net investment income/
(accumulated net investment loss) at end of
period ........................................ $ (1,180) $ 1,207 $ (36) $ (3,129) $ (1,408) $ (404)
=========== =========== =========== =========== =========== ===========
See Notes to Financial Statements.
92
Statements of Changes in Net Assets (continued)
WM GROUP OF FUNDS
For the Six Months Ended April 30, 2005 (unaudited)
(In thousands)
CALIFORNIA
INSURED TAX-EXEMPT
TAX-EXEMPT CALIFORNIA INTERMEDIATE MONEY MONEY CALIFORNIA
BOND MUNICIPAL MUNICIPAL MARKET MARKET MONEY
FUND FUND FUND FUND FUND FUND
---------- ---------- ------------ --------- --------- ---------
Net investment income .............................. $ 4,437 $ 8,179 $ 1,900 $ 5,785 $ 130 $ 120
Net realized gain on investment transactions ....... 1,826 3,245 62 -- -- --
Net change in unrealized appreciation/
depreciation of investments ....................... (3,046) (2,663) (1,373) -- -- --
--------- --------- --------- --------- --------- ---------
Net increase in net assets resulting from
operations ......................................... 3,217 8,761 589 5,785 130 120
Distributions to shareholders from:
Net investment income:
Class A Shares ................................... (3,819) (4,836) (1,020) (4,720) (130) (120)
Class B Shares ................................... (588) (3,243) (783) (142) -- --
Class C Shares ................................... (51) (89) (98) (22) -- --
Class I Shares ................................... -- -- -- (901) -- --
Net realized gains on investments:
Class A Shares ................................... (2,042) (601) (29) -- -- --
Class B Shares ................................... (392) (503) (30) -- -- --
Class C Shares ................................... (39) (14) (3) -- -- --
Class I Shares ................................... -- -- -- -- -- --
Net increase/(decrease) in net assets from Fund
share transactions:
Class A Shares ................................... 651 1,800 1,702 3,124 (4,738) 802
Class B Shares ................................... (1,974) (15,957) (4,715) (13,369) -- --
Class C Shares ................................... (1,023) (565) (269) (1,457) -- --
Class I Shares ................................... -- -- -- (2,286) -- --
--------- --------- --------- --------- --------- ---------
Net increase/(decrease) in net assets .............. (6,060) (15,247) (4,656) (13,988) (4,738) 802
NET ASSETS:
Beginning of period ................................ 223,785 433,444 146,037 683,015 27,122 20,066
--------- --------- --------- --------- --------- ---------
End of period ...................................... $ 217,725 $ 418,197 $ 141,381 $ 669,027 $ 22,384 $ 20,868
========= ========= ========= ========= ========= =========
Undistributed net investment income at end of
period ............................................ $ 186 $ 145 $ 60 $ -- $ -- $ --
========= ========= ========= ========= ========= =========
See Notes to Financial Statements.
93
Statements of Changes in Net Assets (continued)
WM GROUP OF FUNDS
For the Year Ended October 31, 2004
(In thousands)
EQUITY GROWTH & WEST COAST MID CAP SMALL CAP
REIT INCOME INCOME EQUITY STOCK GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND*
---------- ------------ ------------ ------------ ------------ ------------ ---------
Net investment income/(loss) .......... $ 8,603 $ 22,654 $ 20,841 $ 2,198 $ 2,233 $ (606) $ 1,743
Net realized gain/(loss) on
investment transactions .............. 5,453 (3,204) (17,060) 28,703 24,345 39,917 941
Capital gain distributions received ... 32 -- -- -- -- -- --
Net change in unrealized
appreciation/depreciation of
investments .......................... 55,284 164,274 153,422 65,518 32,323 14,218 18,682
--------- ----------- ----------- ----------- ----------- ----------- ---------
Net increase in net assets resulting
from operations ...................... 69,372 183,724 157,203 96,419 58,901 53,529 21,366
Distributions to shareholders from:
Net investment income:
Class A Shares ...................... (107) (5,891) (5,188) -- (35) -- --
Class B Shares ...................... (51) (973) -- -- -- -- --
Class C Shares ...................... (35) (188) (6) -- -- -- --
Class I Shares ...................... (6,014) (14,964) (12,393) (437) (1,465) -- --
Net realized gains on investments:
Class A Shares ...................... (26) -- -- -- (101) -- --
Class B Shares ...................... (21) -- -- -- (46) -- --
Class C Shares ...................... (12) -- -- -- (2) -- --
Class I Shares ...................... (1,358) -- -- -- (974) -- --
Net increase/(decrease) in net assets
from Fund share transactions:
Class A Shares ...................... 4,940 124,517 (4,444) 50,313 15,975 4,016 2,784
Class B Shares ...................... 2,357 23,611 (29,486) 9,013 738 (24,063) 585
Class C Shares ...................... 1,774 25,693 640 4,987 1,132 1,389 389
Class I Shares ...................... 75,766 282,071 414,954 128,742 196,744 575,664 247,209
--------- ----------- ----------- ----------- ----------- ----------- ---------
Net increase in net assets ............ 146,585 617,600 521,280 289,037 270,867 610,535 272,333
NET ASSETS:
Beginning of year ..................... 189,427 908,015 1,553,534 998,485 426,403 908,895 --
--------- ----------- ----------- ----------- ----------- ----------- ---------
End of year ........................... $ 336,012 $ 1,525,615 $ 2,074,814 $ 1,287,522 $ 697,270 $ 1,519,430 $ 272,333
========= =========== =========== =========== =========== =========== =========
Undistributed net investment
income at end of year ................ $ 1,069 $ 1,513 $ 16,668 $ 1,509 $ 1,624 $ 58 $ 1,739
========= =========== =========== =========== =========== =========== =========
- ----------
* The Small Cap Value Fund commenced operations on March 1, 2004.
See Notes to Financial Statements.
94
Statements of Changes in Net Assets (continued)
WM GROUP OF FUNDS
For the Year Ended October 31, 2004
(In thousands)
U.S.
SMALL CAP INTERNATIONAL SHORT TERM GOVERNMENT HIGH
GROWTH GROWTH INCOME SECURITIES INCOME YIELD
FUND FUND FUND FUND FUND FUND
----------- ------------- ------------ ------------ ------------ ----------
Net investment income/(loss) ................... $ (2,535) $ 5,436 $ 8,562 $ 52,299 $ 56,095 $ 48,288
Net realized gain/(loss) on investment
transactions .................................. 49,045 4,780 (215) 171 1,713 17,497
Net change in unrealized appreciation/
depreciation of investments ................... (45,470) 36,011 (1,507) 7,630 14,882 16,305
---------- ----------- ----------- ----------- ----------- ----------
Net increase in net assets
resulting from operations ..................... 1,040 46,227 6,840 60,100 72,690 82,090
Distributions to shareholders from:
Net investment income:
Class A Shares ............................... -- (249) (1,965) (6,550) (8,004) (4,750)
Class B Shares ............................... -- -- (898) (6,926) (7,906) (5,554)
Class C Shares ............................... -- (1) (442) (328) (602) (1,966)
Class I Shares ............................... -- (4,799) (5,343) (46,885) (44,097) (38,653)
Net realized gains on investments:
Class A Shares ............................... -- -- -- -- -- --
Class B Shares ............................... -- -- -- -- -- --
Class C Shares ............................... -- -- -- -- -- --
Class I Shares ............................... -- -- -- -- -- --
Net increase/(decrease) in net assets from
Fund share transactions:
Class A Shares ............................... 16,352 9,571 (17,456) (41,621) (7,529) 33,689
Class B Shares ............................... (5,355) (757) (12,276) (92,848) (44,155) (7,690)
Class C Shares ............................... 551 333 1,258 (7,036) (3,811) 7,493
Class I Shares ............................... (105,981) 184,051 40,577 601,231 147,017 78,376
Redemption fees .............................. -- 1 -- -- -- --
---------- ----------- ----------- ----------- ----------- ----------
Net increase/(decrease) in net assets .......... (93,393) 234,377 10,295 459,137 103,603 143,035
NET ASSETS:
Beginning of year .............................. 436,946 348,033 263,516 1,100,042 1,042,463 581,604
---------- ----------- ----------- ----------- ----------- ----------
End of year .................................... $ 343,553 $ 582,410 $ 273,811 $ 1,559,179 $ 1,146,066 $ 724,639
========== =========== =========== =========== =========== ==========
Undistributed net investment income at end of
year .......................................... $ -- $ 4,599 $ 78 $ 292 $ 485 $ 981
========== =========== =========== =========== =========== ==========
See Notes to Financial Statements.
95
Statements of Changes in Net Assets (continued)
WM GROUP OF FUNDS
For the Year Ended October 31, 2004
(In thousands)
CALIFORNIA
INSURED TAX-EXEMPT
TAX-EXEMPT CALIFORNIA INTERMEDIATE MONEY MONEY CALIFORNIA
BOND MUNICIPAL MUNICIPAL MARKET MARKET MONEY
FUND FUND FUND FUND FUND FUND
----------- ---------- ------------ ---------- ---------- ----------
Net investment income ........................... $ 9,819 $ 18,650 $ 4,209 $ 5,317 $ 105 $ 130
Net realized gain/(loss) on investment
transactions ................................... 2,609 1,664 (576) 1 -- --
Net change in unrealized appreciation/
depreciation of investments .................... (305) 5,421 1,440 -- -- --
--------- --------- --------- --------- --------- ---------
Net increase in net assets
resulting from operations ...................... 12,123 25,735 5,073 5,318 105 130
Distributions to shareholders from:
Net investment income:
Class A Shares ................................ (8,313) (10,374) (2,155) (4,740) (105) (130)
Class B Shares ................................ (1,394) (8,010) (1,842) (34) -- --
Class C Shares ................................ (142) (227) (212) (4) -- --
Class I Shares ................................ -- -- -- (539) -- --
Net realized gains on investments:
Class A Shares ................................ (2,309) -- (696) -- -- --
Class B Shares ................................ (496) -- (847) -- -- --
Class C Shares ................................ (50) -- (94) -- -- --
Class I Shares ................................ -- -- -- -- -- --
Net increase/(decrease) in net assets from Fund
share transactions:
Class A Shares ................................ (22,261) (24,046) (8,913) (177,905) (3,040) (4,664)
Class B Shares ................................ (9,517) (62,790) (21,746) (26,548) -- --
Class C Shares ................................ (682) (2,993) (1,527) 3,434 -- --
Class I Shares ................................ -- -- -- 66,839 -- --
--------- --------- --------- --------- --------- ---------
Net decrease in net assets ...................... (33,041) (82,705) (32,959) (134,179) (3,040) (4,664)
NET ASSETS:
Beginning of year ............................... 256,826 516,149 178,996 817,194 30,162 24,730
--------- --------- --------- --------- --------- ---------
End of year ..................................... $ 223,785 $ 433,444 $ 146,037 $ 683,015 $ 27,122 $ 20,066
========= ========= ========= ========= ========= =========
Undistributed net investment income at end of
year .......................................... $ 207 $ 134 $ 61 $ -- $ -- $ --
========= ========= ========= ========= ========= =========
See Notes to Financial Statements.
96
This Page Left Blank Intentionally.
97
Statements of Changes in Net Assets -- Capital Stock Activity
WM GROUP OF FUNDS
(In thousands)
GROWTH &
REIT FUND EQUITY INCOME FUND INCOME FUND
----------------------- ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
04/30/05 YEAR ENDED 04/30/05 YEAR ENDED 04/30/05 YEAR ENDED
(UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04
----------- ---------- ----------- ---------- ----------- ----------
AMOUNT
CLASS A:
Sold ............................................ $ 6,651 $ 7,159 $ 179,549 $ 162,748 $ 22,141 $ 72,979
Issued as reinvestment of dividends ............. 366 116 5,395 5,448 6,275 5,039
Redeemed ........................................ (2,613) (2,335) (34,065) (43,679) (44,154) (82,462)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ......................... $ 4,404 $ 4,940 $ 150,879 $ 124,517 $ (15,738) $ (4,444)
=========== ========== =========== ========== =========== ==========
CLASS B:
Sold ............................................ $ 2,389 $ 4,003 $ 40,179 $ 45,625 $ 3,203 $ 9,828
Issued as reinvestment of dividends ............. 181 56 1,008 911 24 --
Redeemed ........................................ (1,046) (1,702) (12,616) (22,925) (13,570) (39,314)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ......................... $ 1,524 $ 2,357 $ 28,571 $ 23,611 $ (10,343) $ (29,486)
=========== ========== =========== ========== =========== ==========
CLASS C:
Sold ............................................ $ 1,360 $ 2,929 $ 32,758 $ 28,418 $ 302 $ 1,005
Issued as reinvestment of dividends ............. 123 43 334 154 5 6
Redeemed ........................................ (665) (1,198) (3,049) (2,879) (232) (371)
----------- ---------- ----------- ---------- ----------- ----------
Net increase .................................... $ 818 $ 1,774 $ 30,043 $ 25,693 $ 75 $ 640
=========== ========== =========== ========== =========== ==========
CLASS I:
Sold ............................................ $ 16,502 $ 70,279 $ 131,274 $ 267,857 $ 275,928 $ 409,181
Issued as reinvestment of dividends ............. 12,651 7,372 13,031 14,964 21,264 12,393
Redeemed ........................................ (1,150) (1,885) (1,475) (750) (500) (6,620)
----------- ---------- ----------- ---------- ----------- ----------
Net increase .................................... $ 28,003 $ 75,766 $ 142,830 $ 282,071 $ 296,692 $ 414,954
=========== ========== =========== ========== =========== ==========
SHARES
CLASS A:
Sold ............................................ 419 508 9,459 9,548 906 3,128
Issued as reinvestment of dividends ............. 23 8 285 322 253 229
Redeemed ........................................ (167) (170) (1,794) (2,574) (1,807) (3,552)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ......................... 275 346 7,950 7,296 (648) (195)
=========== ========== =========== ========== =========== ==========
CLASS B:
Sold ............................................ 151 284 2,130 2,704 136 440
Issued as reinvestment of dividends ............. 11 4 54 54 1 --
Redeemed ........................................ (66) (125) (671) (1,368) (576) (1,757)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ......................... 96 163 1,513 1,390 (439) (1,317)
=========== ========== =========== ========== =========== ==========
CLASS C:
Sold ............................................ 85 213 1,747 1,695 13 46
Issued as reinvestment of dividends ............. 7 3 18 9 --* --*
Redeemed ........................................ (42) (86) (163) (172) (10) (17)
----------- ---------- ----------- ---------- ----------- ----------
Net increase .................................... 50 130 1,602 1,532 3 29
=========== ========== =========== ========== =========== ==========
CLASS I:
Sold ............................................ 1,049 5,257 6,882 15,991 11,219 17,733
Issued as reinvestment of dividends ............. 783 532 688 885 857 561
Redeemed ........................................ (73) (139) (81) (45) (21) (284)
----------- ---------- ----------- ---------- ----------- ----------
Net increase .................................... 1,759 5,650 7,489 16,831 12,055 18,010
=========== ========== =========== ========== =========== ==========
- ----------
* Amount represents less than 500 shares.
+ The Small Cap Value Fund commenced operations on March 1, 2004.
See Notes to Financial Statements.
98
WEST COAST EQUITY FUND MID CAP STOCK FUND GROWTH FUND SMALL CAP VALUE FUND+
- ----------------------- ----------------------- ----------------------- -------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
04/30/05 YEAR ENDED 04/30/05 YEAR ENDED 04/30/05 YEAR ENDED 04/30/05 PERIOD ENDED
(UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ------------
$ 57,786 $ 116,678 $ 11,670 $ 25,203 $ 8,925 $ 28,670 $ 6,571 $ 2,899
10,883 -- 2,130 133 448 -- 43 --
(39,631) (66,365) (4,533) (9,361) (14,146) (24,654) (1,589) (115)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ------------
$ 29,038 $ 50,313 $ 9,267 $ 15,975 $ (4,773) $ 4,016 $ 5,025 $ 2,784
=========== ========== =========== ========== =========== ========== =========== ============
$ 16,710 $ 34,227 $ 1,866 $ 3,822 $ 1,854 $ 6,706 $ 1,480 $ 706
1,831 -- 701 45 270 -- 4 --
(9,019) (25,214) (1,893) (3,129) (14,332) (30,769) (184) (121)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ------------
$ 9,522 $ 9,013 $ 674 $ 738 $ (12,208) $ (24,063) $ 1,300 $ 585
=========== ========== =========== ========== =========== ========== =========== ============
$ 3,356 $ 7,311 $ 524 $ 1,293 $ 794 $ 1,636 $ 546 $ 473
118 -- 60 2 6 -- 2 --
(1,093) (2,324) (180) (163) (294) (247) (253) (84)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ------------
$ 2,381 $ 4,987 $ 404 $ 1,132 $ 506 $ 1,389 $ 295 $ 389
=========== ========== =========== ========== =========== ========== =========== ============
$ 35,926 $ 133,663 $ 46,685 $ 195,470 $ 100,415 $ 575,894 $ 13,177 $ 247,359
11,387 437 24,757 2,440 6,133 -- 2,805 --
(525) (5,358) (1,115) (1,166) (1,890) (230) (425) (150)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ------------
$ 46,788 $ 128,742 $ 70,327 $ 196,744 $ 104,658 $ 575,664 $ 15,557 $ 247,209
=========== ========== =========== ========== =========== ========== =========== ============
1,581 3,420 665 1,521 596 1,994 557 287
291 -- 121 8 29 -- 4 --
(1,085) (1,955) (259) (563) (943) (1,724) (136) (11)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ------------
787 1,465 527 966 (318) 270 425 276
=========== ========== =========== ========== =========== ========== =========== ============
508 1,114 111 241 138 515 127 70
55 -- 42 3 19 -- --* --
(275) (824) (113) (197) (1,060) (2,363) (16) (11)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ------------
288 290 40 47 (903) (1,848) 111 59
=========== ========== =========== ========== =========== ========== =========== ============
101 238 31 81 58 125 47 46
4 -- 4 --* 1 -- --* --
(33) (76) (11) (10) (22) (19) (22) (8)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ------------
72 162 24 71 37 106 25 38
=========== ========== =========== ========== =========== ========== =========== ============
967 3,925 2,637 11,766 6,424 38,649 1,129 24,787
301 13 1,394 153 383 -- 236 --
(14) (160) (62) (71) (122) (16) (38) (15)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ------------
1,254 3,778 3,969 11,848 6,685 38,633 1,327 24,772
=========== ========== =========== ========== =========== ========== =========== ============
See Notes to Financial Statements.
99
Statements of Changes in Net Assets -- Capital Stock Activity
WM GROUP OF FUNDS
(In thousands)
SMALL CAP INTERNATIONAL SHORT TERM
GROWTH FUND GROWTH FUND INCOME FUND
----------------------- ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
04/30/05 YEAR ENDED 04/30/05 YEAR ENDED 04/30/05 YEAR ENDED
(UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04
----------- ---------- ----------- ---------- ----------- ----------
AMOUNT
CLASS A:
Sold ...................................... $ 6,507 $ 39,482 $ 8,514 $ 17,317 $ 6,448 $ 27,980
Issued as reinvestment of dividends ....... -- -- 356 245 533 1,356
Redeemed .................................. (15,073) (23,130) (3,462) (7,991) (17,351) (46,792)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ................... $ (8,566) $ 16,352 $ 5,408 $ 9,571 $ (10,370) $ (17,456)
=========== ========== =========== ========== =========== ==========
CLASS B:
Sold ...................................... $ 430 $ 4,111 $ 1,176 $ 1,369 $ 1,332 $ 8,280
Issued as reinvestment of dividends ....... -- -- -- -- 304 739
Redeemed .................................. (2,357) (9,466) (568) (2,126) (6,178) (21,295)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ................... $ (1,927) $ (5,355) $ 608 $ (757) $ (4,542) $ (12,276)
=========== ========== =========== ========== =========== ==========
CLASS C:
Sold ...................................... $ 163 $ 956 $ 428 $ 639 $ 2,203 $ 14,060
Issued as reinvestment of dividends ....... -- -- 4 1 204 366
Redeemed .................................. (287) (405) (43) (307) (4,322) (13,168)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ................... $ (124) $ 551 $ 389 $ 333 $ (1,915) $ 1,258
=========== ========== =========== ========== =========== ==========
CLASS I:
Sold ...................................... $ 25,543 $ 53,652 $ 75,303 $ 179,477 $ 14,646 $ 35,609
Issued as reinvestment of dividends ....... -- -- 7,523 4,799 3,130 5,343
Redeemed .................................. (50,850) (159,633) -- (225) -- (375)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ................... $ (25,307) $ (105,981) $ 82,826 $ 184,051 $ 17,776 $ 40,577
=========== ========== =========== ========== =========== ==========
SHARES
CLASS A:
Sold ...................................... 484 2,794 861 1,935 2,741 11,724
Issued as reinvestment of dividends ....... -- -- 36 29 228 567
Redeemed .................................. (1,112) (1,699) (353) (896) (7,390) (19,591)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ................... (628) 1,095 544 1,068 (4,421) (7,300)
=========== ========== =========== ========== =========== ==========
CLASS B:
Sold ...................................... 36 326 124 158 567 3,475
Issued as reinvestment of dividends ....... -- -- -- -- 129 310
Redeemed .................................. (200) (771) (60) (246) (2,628) (8,916)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ................... (164) (445) 64 (88) (1,932) (5,131)
=========== ========== =========== ========== =========== ==========
CLASS C:
Sold ...................................... 13 74 46 75 935 5,891
Issued as reinvestment of dividends ....... -- -- --* --* 87 154
Redeemed .................................. (24) (33) (5) (35) (1,839) (5,520)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ................... (11) 41 41 40 (817) 525
=========== ========== =========== ========== =========== ==========
CLASS I:
Sold ...................................... 1,815 3,920 7,578 20,051 6,239 14,915
Issued as reinvestment of dividends ....... -- -- 749 563 1,334 2,240
Redeemed .................................. (3,688) (10,697) -- (26) -- (158)
----------- ---------- ----------- ---------- ----------- ----------
Net increase/(decrease) ................... (1,873) (6,777) 8,327 20,588 7,573 16,997
=========== ========== =========== ========== =========== ==========
- ----------
* Amount represents less than 500 shares.
See Notes to Financial Statements.
100
U.S. GOVERNMENT
SECURITIES FUND INCOME FUND HIGH YIELD FUND TAX-EXEMPT BOND FUND
- ----------------------- ----------------------- ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
04/30/05 YEAR ENDED 04/30/05 YEAR ENDED 04/30/05 YEAR ENDED 04/30/05 YEAR ENDED
(UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
$ 12,615 $ 14,876 $ 17,723 $ 35,193 $ 33,438 $ 66,774 $ 8,423 $ 13,239
2,042 4,770 2,354 5,097 1,839 2,383 4,103 7,522
(15,831) (61,267) (18,451) (47,819) (17,796) (35,468) (11,875) (43,022)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
$ (1,174) $ (41,621) $ 1,626 $ (7,529) $ 17,481 $ 33,689 $ 651 $ (22,261)
=========== ========== =========== ========== =========== ========== =========== ==========
$ 2,179 $ 7,088 $ 5,015 $ 23,555 $ 5,286 $ 20,058 $ 528 $ 1,559
2,069 5,486 1,897 4,768 1,066 2,426 658 1,299
(22,384) (105,422) (16,291) (72,478) (9,036) (30,174) (3,160) (12,375)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
$ (18,136) $ (92,848) $ (9,379) $ (44,155) $ (2,684) $ (7,690) $ (1,974) $ (9,517)
=========== ========== =========== ========== =========== ========== =========== ==========
$ 1,468 $ 1,945 $ 1,622 $ 4,123 $ 8,426 $ 19,533 $ 1,497 $ 1,645
84 245 173 411 573 995 69 150
(1,520) (9,226) (2,149) (8,345) (6,023) (13,035) (2,589) (2,477)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
$ 32 $ (7,036) $ (354) $ (3,811) $ 2,976 $ 7,493 $ (1,023) $ (682)
=========== ========== =========== ========== =========== ========== =========== ==========
$ 187,430 $ 557,045 $ 55,887 $ 147,970 $ 31,392 $ 77,684
30,930 46,885 23,637 44,097 20,138 38,653
-- (2,699) (1,955) (45,050) (2,875) (37,961)
- ----------- ---------- ----------- ---------- ----------- ----------
$ 218,360 $ 601,231 $ 77,569 $ 147,017 $ 48,655 $ 78,376
=========== ========== =========== ========== =========== ==========
1,174 1,367 1,892 3,736 4,028 8,227 1,070 1,669
189 440 252 542 222 293 525 953
(1,467) (5,655) (1,970) (5,105) (2,161) (4,404) (1,516) (5,470)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
(104) (3,848) 174 (827) 2,089 4,116 79 (2,848)
=========== ========== =========== ========== =========== ========== =========== ==========
202 651 534 2,495 633 2,460 67 196
192 506 202 506 128 298 84 164
(2,078) (9,721) (1,735) (7,711) (1,083) (3,708) (403) (1,569)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
(1,684) (8,564) (999) (4,710) (322) (950) (252) (1,209)
=========== ========== =========== ========== =========== ========== =========== ==========
137 179 172 436 1,008 2,395 193 209
8 22 18 44 69 122 9 19
(141) (852) (229) (888) (725) (1,613) (333) (314)
- ----------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
4 (651) (39) (408) 352 904 (131) (86)
=========== ========== =========== ========== =========== ========== =========== ==========
17,407 51,228 5,922 15,782 3,764 9,657
2,871 4,324 2,522 4,687 2,442 4,768
-- (251) (209) (4,919) (348) (4,803)
- ----------- ---------- ----------- ---------- ----------- ----------
20,278 55,301 8,235 15,550 5,858 9,622
=========== ========== =========== ========== =========== ==========
See Notes to Financial Statements.
101
Statements of Changes in Net Assets -- Capital Stock Activity
WM GROUP OF FUNDS
(In thousands)
CALIFORNIA CALIFORNIA INSURED
MUNICIPAL FUND INTERMEDIATE MUNICIPAL FUND MONEY MARKET FUND
----------------------- --------------------------- -------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
04/30/05 YEAR ENDED 04/30/05 YEAR ENDED 04/30/05 YEAR ENDED
(UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04
----------- ---------- ----------- -------------- ----------- ------------
AMOUNT
CLASS A:
Sold ..................................... $ 12,656 $ 24,927 $ 8,109 $ 23,303 $ 273,697 $ 847,283
Issued as reinvestment of dividends ...... 3,517 6,426 684 2,055 4,596 4,517
Redeemed ................................. (14,373) (55,399) (7,091) (34,271) (275,169) (1,029,705)
----------- ---------- ----------- -------------- ----------- ------------
Net increase/(decrease) .................. $ 1,800 $ (24,046) $ 1,702 $ (8,913) $ 3,124 $ (177,905)
=========== ========== =========== ============== =========== ============
CLASS B:
Sold ..................................... $ 1,269 $ 4,784 $ 912 $ 4,663 $ 10,206 $ 36,057
Issued as reinvestment of dividends ...... 2,567 5,344 607 2,142 115 30
Redeemed ................................. (19,793) (72,918) (6,234) (28,551) (23,690) (62,635)
----------- ---------- ----------- -------------- ----------- ------------
Net decrease ............................. $ (15,957) $ (62,790) $ (4,715) $ (21,746) $ (13,369) $ (26,548)
=========== ========== =========== ============== =========== ============
CLASS C:
Sold ..................................... $ 393 $ 636 $ 558 $ 1,901 $ 8,373 $ 14,376
Issued as reinvestment of dividends ...... 75 169 70 231 18 3
Redeemed ................................. (1,033) (3,798) (897) (3,659) (9,848) (10,945)
----------- ---------- ----------- -------------- ----------- ------------
Net increase/(decrease) .................. $ (565) $ (2,993) $ (269) $ (1,527) $ (1,457) $ 3,434
=========== ========== =========== ============== =========== ============
CLASS I:
Sold ..................................... $ 39,313 $ 134,300
Issued as reinvestment of dividends ...... 901 539
Redeemed ................................. (42,500) (68,000)
----------- ------------
Net increase/(decrease) .................. $ (2,286) $ 66,839
=========== ============
SHARES
CLASS A:
Sold ..................................... 1,113 2,208 733 2,102 273,697 847,283
Issued as reinvestment of dividends ...... 310 570 62 186 4,596 4,517
Redeemed ................................. (1,265) (4,937) (644) (3,137) (275,169) (1,029,705)
----------- ---------- ----------- -------------- ----------- ------------
Net increase/(decrease) .................. 158 (2,159) 151 (849) 3,124 (177,905)
=========== ========== =========== ============== =========== ============
CLASS B:
Sold ..................................... 112 424 82 422 10,206 36,057
Issued as reinvestment of dividends ...... 226 474 55 194 115 30
Redeemed ................................. (1,743) (6,500) (565) (2,586) (23,690) (62,635)
----------- ---------- ----------- -------------- ----------- ------------
Net decrease ............................. (1,405) (5,602) (428) (1,970) (13,369) (26,548)
=========== ========== =========== ============== =========== ============
CLASS C:
Sold ..................................... 34 56 51 171 8,373 14,376
Issued as reinvestment of dividends ...... 7 15 6 21 18 3
Redeemed ................................. (91) (339) (81) (332) (9,848) (10,945)
----------- ---------- ----------- -------------- ----------- ------------
Net increase/(decrease) .................. (50) (268) (24) (140) (1,457) 3,434
=========== ========== =========== ============== =========== ============
CLASS I:
Sold ..................................... 39,313 134,300
Issued as reinvestment of dividends ...... 901 539
Redeemed ................................. (42,500) (68,000)
----------- ------------
Net increase/(decrease) .................. (2,286) 66,839
=========== ============
See Notes to Financial Statements.
102
TAX-EXEMPT CALIFORNIA
MONEY MARKET FUND MONEY FUND
- ----------------------- ------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
04/30/05 YEAR ENDED 04/30/05 YEAR ENDED
(UNAUDITED) 10/31/04 (UNAUDITED) 10/31/04
- ----------- ---------- ----------- -----------
$ 9,323 $ 45,203 $ 10,871 $ 35,029
127 103 119 129
(14,188) (48,346) (10,188) (39,822)
- ----------- ---------- ----------- -----------
$ (4,738) $ (3,040) $ 802 $ (4,664)
=========== ========== =========== ===========
9,323 45,203 10,871 35,029
127 103 119 129
(14,188) (48,346) (10,188) (39,822)
- ----------- ---------- ----------- -----------
(4,738) (3,040) 802 (4,664)
=========== ========== =========== ===========
See Notes to Financial Statements.
103
Financial Highlights
For a Fund share outstanding throughout each period.
CLASS A CLASS B
---------------------------------------- --------------------------
SIX MONTHS YEARS ENDED SIX MONTHS
ENDED OCTOBER 31 ENDED
04/30/05 ----------------------- 04/30/05
REIT FUND (UNAUDITED) 2004 2003(3) (UNAUDITED) 2004
----------- --------- --------- ----------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD.................. $ 15.62 $ 12.46 $ 10.00 $ 15.58 $ 12.43
----------- --------- --------- ----------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............................... 0.30(4) 0.39(4) 0.28(4) 0.23(4) 0.29(4)
Net realized and unrealized gain on investments..... 0.68 3.13 2.35 0.68 3.12
----------- --------- --------- ----------- ---------
Total from investment operations.................... 0.98 3.52 2.63 0.91 3.41
----------- --------- --------- ----------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income................ (0.25) (0.31) (0.17) (0.19) (0.21)
Distributions from net realized capital gains....... (0.33) (0.05) -- (0.33) (0.05)
----------- --------- --------- ----------- ---------
Total distributions................................. (0.58) (0.36) (0.17) (0.52) (0.26)
----------- --------- --------- ----------- ---------
NET ASSET VALUE, END OF PERIOD........................ $ 16.02 $ 15.62 $ 12.46 $ 15.97 $ 15.58
=========== ========= ========= =========== =========
TOTAL RETURN(1)....................................... 6.29% 28.71% 26.43% 5.85% 27.76%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)................. $ 14,020 $ 9,376 $ 3,159 $ 7,746 $ 6,060
Ratio of operating expenses to average net assets... 1.31%(5) 1.33% 1.41%(5) 2.07%(5) 2.08%
Ratio of net investment income to average net
assets............................................ 3.72%(5) 2.82% 3.60%(5) 2.96%(5) 2.07%
Portfolio turnover rate............................. 7% 5% 7% 7% 5%
Ratio of operating expenses to average net assets
without fee waivers, expenses reimbursed and/or
fees reduced by credits allowed by the
custodian(2)...................................... 1.31%(5) 1.33% 1.41%(5) 2.07%(5) 2.08%
CLASS A
-------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ---------------------------------------------------------
EQUITY INCOME FUND (UNAUDITED) 2004 2003 2002 2001 2000
----------- --------- -------- -------- -------- --------
NET ASSET VALUE, BEGINNING OF PERIOD................... $ 17.79 $ 15.46 $ 12.73 $ 14.85 $ 15.59 $ 14.60
----------- --------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............................... 0.24(4) 0.29(4) 0.33(4) 0.40(4) 0.48(4) 0.49(4)
Net realized and unrealized gain/(loss) on
investments....................................... 1.19 2.33 2.73 (1.85) 0.37 1.42
----------- --------- -------- -------- -------- --------
Total from investment operations.................... 1.43 2.62 3.06 (1.45) 0.85 1.91
----------- --------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income................ (0.21) (0.29) (0.33) (0.35) (0.46) (0.48)
Distributions from net realized capital gains....... -- -- -- (0.32) (1.13) (0.44)
----------- --------- -------- -------- -------- --------
Total distributions................................. (0.21) (0.29) (0.33) (0.67) (1.59) (0.92)
----------- --------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD......................... $ 19.01 $ 17.79 $ 15.46 $ 12.73 $ 14.85 $ 15.59
=========== ========= ======== ======== ======== ========
TOTAL RETURN(1)........................................ 8.04% 17.06% 24.43% (10.35)% 5.92% 13.73%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)................. $ 620,152 $ 438,776 $268,489 $198,756 $211,445 $191,850
Ratio of operating expenses to average net assets... 0.88%(5) 0.91% 0.95% 0.97% 0.96% 1.05%
Ratio of net investment income to average
net assets........................................ 2.52%(5) 1.74% 2.43% 2.77% 3.17% 3.39%
Portfolio turnover rate............................. 8% 20% 18% 16% 17% 84%
Ratio of operating expenses to average net assets
without fee waivers, expenses reimbursed and/or
fees reduced by credits allowed by
the custodian(2).................................. 0.88%(5) 0.91% 0.95% 0.97% 0.97% 1.05%
CLASS B
-------------------------
SIX MONTHS
ENDED
04/30/05
EQUITY INCOME FUND (UNAUDITED) 2004
----------- --------
NET ASSET VALUE, BEGINNING OF PERIOD...................... $ 17.67 $ 15.36
----------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................. 0.15(4) 0.14(4)
Net realized and unrealized gain/(loss) on investments 1.20 2.30
----------- --------
Total from investment operations....................... 1.35 2.44
----------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income................... (0.13) (0.13)
Distributions from net realized capital gains.......... -- --
----------- --------
Total distributions.................................... (0.13) (0.13)
----------- --------
NET ASSET VALUE, END OF PERIOD............................ $ 18.89 $ 17.67
=========== ========
TOTAL RETURN(1)........................................... 7.58% 16.04%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s).................... $ 182,596 $144,144
Ratio of operating expenses to average net assets...... 1.78%(5) 1.81%
Ratio of net investment income to average net assets... 1.62%(5) 0.84%
Portfolio turnover rate................................ 8% 20%
Ratio of operating expenses to average net assets
without fee waivers, expenses reimbursed and/or
fees reduced by credits allowed by
the custodian(2)..................................... 1.78%(5) 1.81%
- ----------
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges.
The total returns would have been lower if certain fees had not been
waived and/or expenses reimbursed by the investment advisor or if fees had
not been reduced by credits allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The REIT Fund commenced operations on March 1, 2003.
(4) Per share numbers have been calculated using the average shares method.
(5) Annualized.
(6) The Equity Income Fund commenced selling Class C shares on March 1, 2002.
(7) The Equity Income Fund commenced selling Class I shares on August 1, 2000.
See Notes to Financial Statements.
104
CLASS C CLASS I
-------------------------------------- --------------------------------------
YEARS SIX MONTHS YEARS ENDED SIX MONTHS YEARS ENDED
ENDED ENDED OCTOBER 31 ENDED OCTOBER 31
OCTOBER 31 04/30/05 --------------------- 04/30/05 ---------------------
2003(3) (UNAUDITED) 2004 2003(3) (UNAUDITED) 2004 2003(3)
- ---------- ----------- --------- ------- ----------- -------- --------
$ 10.00 $ 15.58 $ 12.43 $ 10.00 $ 15.65 $ 12.47 $ 10.00
- ---------- ----------- --------- ------- ----------- -------- --------
0.22(4) 0.24(4) 0.31(4) 0.23(4) 0.33(4) 0.46(4) 0.34(4)
2.35 0.68 3.12 2.35 0.68 3.14 2.32
- ---------- ----------- --------- ------- ----------- -------- --------
2.57 0.92 3.43 2.58 1.01 3.60 2.66
- ---------- ----------- --------- ------- ----------- -------- --------
(0.14) (0.20) (0.23) (0.15) (0.28) (0.37) (0.19)
-- (0.33) (0.05) -- (0.33) (0.05) --
- ---------- ----------- --------- ------- ----------- -------- --------
(0.14) (0.53) (0.28) (0.15) (0.61) (0.42) (0.19)
- ---------- ----------- --------- ------- ----------- -------- --------
$ 12.43 $ 15.97 $ 15.58 $ 12.43 $ 16.05 $ 15.65 $ 12.47
========== =========== ========= ======= =========== ======== ========
25.86% 5.91% 27.95% 25.88% 6.49% 29.40% 26.76%
$ 2,808 $ 4,577 $ 3,672 $ 1,322 $ 353,388 $316,904 $182,138
2.13%(5) 2.00%(5) 1.98% 2.06%(5) 0.84%(5) 0.86% 0.92%(5)
2.88%(5) 3.03%(5) 2.17% 2.95%(5) 4.19%(5) 3.29% 4.09%(5)
7% 7% 5% 7% 7% 5% 7%
2.13%(5) 2.00%(5) 1.98% 2.06%(5) 0.84%(5) 0.86% 0.92%(5)
CLASS C
---------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- ----------------------------------------------- 04/30/05 ----------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002(6)
- -------- -------- -------- -------- ----------- -------- -------- --------
$ 12.65 $ 14.78 $ 15.52 $ 14.53 $ 17.57 $ 15.29 $ 12.62 $ 15.09
- -------- -------- -------- -------- ----------- -------- -------- --------
0.20(4) 0.27(4) 0.35(4) 0.37(4) 0.16(4) 0.16(4) 0.22(4) 0.18(4)
2.71 (1.85) 0.38 1.42 1.19 2.30 2.68 (2.43)
- -------- -------- -------- -------- ----------- -------- -------- --------
2.91 (1.58) 0.73 1.79 1.35 2.46 2.90 (2.25)
- -------- -------- -------- -------- ----------- -------- -------- --------
(0.20) (0.23) (0.34) (0.36) (0.15) (0.18) (0.23) (0.22)
-- (0.32) (1.13) (0.44) -- -- -- --
- -------- -------- -------- -------- ----------- -------- -------- --------
(0.20) (0.55) (1.47) (0.80) (0.15) (0.18) (0.23) (0.22)
- -------- -------- -------- -------- ----------- -------- -------- --------
$ 15.36 $ 12.65 $ 14.78 $ 15.52 $ 18.77 $ 17.57 $ 15.29 $ 12.62
======== ======== ======== ======== =========== ======== ======== ========
23.19% (11.20)% 5.09% 12.84% 7.68% 16.16% 23.29% (15.07)%
$103,888 $ 82,330 $ 68,549 $ 47,386 $ 66,134 $ 33,770 $ 5,973 $ 1,780
1.89% 1.88% 1.81% 1.85% 1.68%(5) 1.70% 1.78% 1.80%(5)
1.49% 1.86% 2.32% 2.59% 1.72%(5) 0.95% 1.60% 1.94%(5)
18% 16% 17% 84% 8% 20% 18% 16%
1.89% 1.88% 1.82% 1.85% 1.68%(5) 1.70% 1.78% 1.80%(5)
CLASS I
- ------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 -------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000(7)
- ----------- -------- -------- --------- -------- --------
$ 17.79 $ 15.45 $ 12.73 $ 14.85 $ 15.59 $ 14.47
- ----------- -------- -------- --------- -------- --------
0.27(4) 0.35(4) 0.38(4) 0.45(4) 0.54(4) 0.11(4)
1.19 2.33 2.72 (1.85) 0.35 1.13
- ----------- -------- -------- --------- -------- --------
1.46 2.68 3.10 (1.40) 0.89 1.24
- ----------- -------- -------- --------- -------- --------
(0.24) (0.34) (0.38) (0.40) (0.50) (0.12)
-- -- -- (0.32) (1.13) --
- ----------- -------- -------- --------- -------- --------
(0.24) (0.34) (0.38) (0.72) (1.63) (0.12)
- ----------- -------- -------- --------- -------- --------
$ 19.01 $ 17.79 $ 15.45 $ 12.73 $ 14.85 $ 15.59
=========== ======== ======== ========= ======== ========
8.20% 17.51% 24.77% (10.04)% 6.26% 8.63%
$ 1,114,000 $908,925 $529,665 $ 350,185 $252,453 $ 96,436
0.56%(5) 0.59% 0.61% 0.63% 0.64% 0.72%(5)
2.84%(5) 2.06% 2.77% 3.11% 3.49% 3.72%(5)
8% 20% 18% 16% 17% 84%
0.56%(5) 0.59% 0.61% 0.63% 0.65% 0.72%(5)
See Notes to Financial Statements.
105
Financial Highlights
For a Fund share outstanding throughout each period.
CLASS A
-------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ---------------------------------------------------------
GROWTH & INCOME FUND (UNAUDITED) 2004 2003 2002 2001 2000
----------- --------- -------- -------- -------- --------
NET ASSET VALUE, BEGINNING OF PERIOD ................... $ 23.41 $ 21.59 $ 18.44 $ 22.34 $ 27.11 $ 24.61
----------- --------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) ........................ 0.20(4) 0.22(4) 0.22(4) 0.17(4) 0.10 0.06
Net realized and unrealized gain/(loss) on
investments........................................ 0.76 1.81 3.11 (3.68) (3.63) 3.30
----------- --------- -------- -------- -------- --------
Total from investment operations .................... 0.96 2.03 3.33 (3.51) (3.53) 3.36
----------- --------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ................ (0.27) (0.21) (0.18) (0.03) (0.07) (0.03)
Distributions from net realized capital gains ....... -- -- -- (0.36) (1.17) (0.83)
----------- --------- -------- -------- -------- --------
Total distributions ................................. (0.27) (0.21) (0.18) (0.39) (1.24) (0.86)
----------- --------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD ......................... $ 24.10 $ 23.41 $ 21.59 $ 18.44 $ 22.34 $ 27.11
=========== ========= ======== ======== ======== ========
TOTAL RETURN(1) ........................................ 4.05% 9.45% 18.18% (16.10)% (13.40)% 13.95%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s) ................. $ 584,451 $ 582,866 $541,707 $475,010 $560,226 $662,086
Ratio of operating expenses to average net assets.... 0.89%(6) 0.90% 0.93% 0.94% 0.92% 0.94%
Ratio of net investment income/(loss)
to average net assets ............................. 1.64%(6) 0.94% 1.12% 0.79% 0.40% 0.21%
Portfolio turnover rate ............................. 5% 6% 17% 22% 35% 35%
Ratio of operating expenses to average net assets
without fee waivers, expenses reimbursed and/or
fees reduced by credits allowed by the custodian(2) 0.89%(6) 0.90% 0.93% 0.94% 0.92% 0.94%
CLASS B
-------------------------
SIX MONTHS
ENDED
04/30/05
GROWTH & INCOME FUND (UNAUDITED) 2004
----------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD ................... $ 22.47 $ 20.74
----------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) ........................ 0.07(4) (0.01)(4)
Net realized and unrealized gain/(loss) on
investments........................................ 0.73 1.74
----------- ---------
Total from investment operations .................... 0.80 1.73
----------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ................ (0.01) --
Distributions from net realized capital gains ....... -- --
----------- ---------
Total distributions ................................. (0.01) --
----------- ---------
NET ASSET VALUE, END OF PERIOD ......................... $ 23.26 $ 22.47
=========== =========
TOTAL RETURN(1) ........................................ 3.54% 8.39%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s) ................. $ 88,654 $ 95,528
Ratio of operating expenses to average net assets.... 1.93%(6) 1.89%
Ratio of net investment income/(loss)
to average net assets ............................. 0.60%(6) (0.05)%
Portfolio turnover rate ............................. 5% 6%
Ratio of operating expenses to average net assets
without fee waivers, expenses reimbursed and/or
fees reduced by credits allowed by the custodian(2) 1.93%(6) 1.89%
CLASS A
------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 --------------------------------------------------------
WEST COAST EQUITY FUND (UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- --------- -------- -------- --------
NET ASSET VALUE, BEGINNING OF PERIOD .................. $ 35.04 $ 32.14 $ 23.73 $ 28.89 $ 36.23 $ 32.04
----------- -------- --------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) ....................... 0.22 0.06(4) 0.04(4) 0.02(4) 0.11 0.10(4)
Net realized and unrealized gain/(loss) on
investments ...................................... 0.42 2.84 8.37 (4.09) (2.35) 8.22
----------- -------- --------- -------- -------- --------
Total from investment operations ................... 0.64 2.90 8.41 (4.07) (2.24) 8.32
----------- -------- --------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ............... (0.20) -- -- (0.07) (0.03) --
Distributions from net realized capital gains ...... (0.43) -- -- (1.02) (5.07) (4.13)
----------- -------- --------- -------- -------- --------
Total distributions ................................ (0.63) -- -- (1.09) (5.10) (4.13)
----------- -------- --------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD ........................ $ 35.05 $ 35.04 $ 32.14 $ 23.73 $ 28.89 $ 36.23
=========== ======== ========= ======== ======== ========
TOTAL RETURN(1) ....................................... 1.69% 9.06% 35.44% (14.94)% (6.55)% 28.73%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s) ................ $ 649,524 $621,924 $ 523,308 $375,821 $427,215 $442,253
Ratio of operating expenses to average net assets .. 0.90%(6) 0.94% 1.02% 1.05% 1.01% 1.02%
Ratio of net investment income/(loss)
to average net assets ............................ 1.24%(6) 0.17% 0.14% 0.07% 0.38% 0.27%
Portfolio turnover rate ............................ 8% 12% 14% 16% 27% 42%
Ratio of operating expenses to average net assets
without fee waivers, expenses reimbursed and/or
fees reduced by credits allowed by the
custodian(2) ..................................... 0.90%(6) 0.94% 1.02% 1.05% 1.01% 1.02%
CLASS B
------------------------
SIX MONTHS
ENDED
04/30/05
WEST COAST EQUITY FUND (UNAUDITED) 2004
----------- --------
NET ASSET VALUE, BEGINNING OF PERIOD .................. $ 31.48 $ 29.14
----------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) ....................... 0.04 (0.24)(4)
Net realized and unrealized gain/(loss) on
investments ...................................... 0.37 2.58
----------- --------
Total from investment operations ................... 0.41 2.34
----------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ............... -- --
Distributions from net realized capital gains ...... (0.43) --
----------- --------
Total distributions ................................ (0.43) --
----------- --------
NET ASSET VALUE, END OF PERIOD ........................ $ 31.46 $ 31.48
=========== ========
TOTAL RETURN(1) ....................................... 1.22% 8.03%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s) ................ $ 150,133 $141,134
Ratio of operating expenses to average net assets .. 1.86%(6) 1.89%
Ratio of net investment income/(loss)
to average net assets ............................ 0.28%(6) (0.78)%
Portfolio turnover rate ............................ 8% 12%
Ratio of operating expenses to average net assets
without fee waivers, expenses reimbursed and/or
fees reduced by credits allowed by the
custodian(2) ..................................... 1.86%(6) 1.89%
- ----------
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges.
The total returns would have been lower if certain fees had not been
waived and/or expenses reimbursed by the investment advisor or if fees had
not been reduced by credits allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The Funds commenced selling Class C shares on March 1, 2002.
(4) Per share numbers have been calculated using the average shares method.
(5) Amount represents less than $0.01 per share.
(6) Annualized.
(7) Ratio represents less than 0.01%.
See Notes to Financial Statements.
106
CLASS C
---------------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- ------------------------------------------------------ 04/30/05 -----------------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002 (3)
- ----------- ------------ ---------- ---------- ----------- -------------- --------- ----------
$ 17.72 $ 21.67 $ 26.49 $ 24.24 $ 22.22 $ 20.62 $17.73 $ 21.36
- -------- -------- -------- -------- ------- ------- ------ -------
0.02(4) (0.04)(4) (0.13) (0.17) 0.07(4) (0.00)(4)(5) 0.03(4) (0.01)(4)
3.00 (3.55) (3.52) 3.25 0.72 1.73 2.98 (3.62)
- -------- -------- -------- -------- ------- ------- ------ -------
3.02 (3.59) (3.65) 3.08 0.79 1.73 3.01 (3.63)
- -------- -------- -------- -------- ------- ------- ------ -------
-- (0.00)(5) -- -- (0.07) (0.13) (0.12) --
-- (0.36) (1.17) (0.83) -- -- -- --
- -------- -------- -------- -------- ------- ------- ------ -------
-- (0.36) (1.17) (0.83) (0.07) (0.13) (0.12) --
- -------- -------- -------- -------- ------- ------- ------ -------
$ 20.74 $ 17.72 $ 21.67 $ 26.49 $ 22.94 $ 22.22 $20.62 $ 17.73
======== ======== ======== ======== ======= ======= ====== =======
16.99% (16.94)% (14.20)% 13.01% 3.54% 8.45% 17.08% (17.00)%
$115,457 $123,423 $186,247 $242,611 $ 1,663 $ 1,537 $ 823 $ 264
1.96% 1.91% 1.82% 1.78% 1.91%(6) 1.84% 1.89% 1.83%(6)
0.09% (0.18)% (0.50)% (0.63)% 0.62%(6) (0.00)%(7) 0.16% (0.10)%(6)
17% 22% 35% 35% 5% 6% 17% 22%
1.96% 1.91% 1.82% 1.78% 1.91%(6) 1.84% 1.89% 1.83%(6)
CLASS I
- ----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ------------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- ----------- ------------- ----------- ----------- ---------- ---------
$ 23.52 $ 21.68 $ 18.52 $ 22.39 $ 27.16 $ 24.65
- ---------- ---------- -------- -------- -------- --------
0.24(4) 0.30(4) 0.29(4) 0.24(4) 0.18 0.14
0.77 1.82 3.12 (3.70) (3.64) 3.31
- ---------- ---------- -------- -------- -------- --------
1.01 2.12 3.41 (3.46) (3.46) 3.45
- ---------- ---------- -------- -------- -------- --------
(0.35) (0.28) (0.25) (0.05) (0.14) (0.11)
-- -- -- (0.36) (1.17) (0.83)
- ---------- ---------- -------- -------- -------- --------
(0.35) (0.28) (0.25) (0.41) (1.31) (0.94)
- ---------- ---------- -------- -------- -------- --------
$ 24.18 $ 23.52 $ 21.68 $ 18.52 $ 22.39 $ 27.16
========== ========== ======== ======== ======== ========
4.24% 9.85% 18.61% (15.84)% (13.12)% 14.35%
$1,725,317 $1,394,883 $895,547 $671,191 $768,550 $725,241
0.56%(6) 0.57% 0.59% 0.60% 0.58% 0.60%
1.97%(6) 1.27% 1.46% 1.13% 0.74% 0.55%
5% 6% 17% 22% 35% 35%
0.56%(6) 0.57% 0.59% 0.60% 0.58% 0.60%
CLASS C
-----------------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- ---------------------------------------------------------- 04/30/05 -------------------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002(3)
- ------------ ------------ ---------- ------------ ----------- ----------- ------------ -------------
$ 21.73 $ 26.71 $ 34.12 $ 30.63 $ 31.56 $ 29.20 $ 21.74 $ 27.59
- -------- -------- -------- -------- -------- ------- -------- --------
(0.20)(4) (0.23)(4) (0.15) (0.19)(4) 0.05 (0.21)(4) (0.18)(4) (0.14)(4)
7.61 (3.73) (2.19) 7.81 0.38 2.57 7.64 (5.71)
- -------- -------- -------- -------- -------- ------- -------- --------
7.41 (3.96) (2.34) 7.62 0.43 2.36 7.46 (5.85)
- -------- -------- -------- -------- -------- ------- -------- --------
-- (0.00)(5) -- -- (0.02) -- -- --
-- (1.02) (5.07) (4.13) (0.43) -- -- --
- -------- -------- -------- -------- -------- ------- -------- --------
-- (1.02) (5.07) (4.13) (0.45) -- -- --
- -------- -------- -------- -------- -------- ------- -------- --------
$ 29.14 $ 21.73 $ 26.71 $ 34.12 $ 31.54 $ 31.56 $ 29.20 $ 21.74
======== ======== ======== ======== ======== ======= ======== ========
34.10% (15.73)% (7.40)% 27.67% 1.27% 8.12% 34.27% (21.20)%
$122,221 $102,208 $109,655 $116,672 $ 11,255 $ 9,000 $ 3,593 $ 1,341
2.01% 2.00% 1.89% 1.84% 1.79%(6) 1.80% 1.90% 1.96%(6)
(0.85)% (0.88)% (0.50)% (0.55)% 0.35%(6) (0.69)% (0.74)% (0.84)%(6)
14% 16% 27% 42% 8% 12% 14% 16%
2.01% 2.00% 1.89% 1.84% 1.79%(6) 1.80% 1.90% 1.96%(6)
CLASS I
- ----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 -----------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- ----------- ------------ ----------- ----------- ---------- -----------
$ 35.39 $ 32.39 $ 23.83 $ 29.00 $ 36.34 $ 32.04
-------- --------- -------- -------- -------- --------
0.29 0.17(4) 0.13(4) 0.12(4) 0.20 0.22(4)
0.42 2.87 8.43 (4.10) (2.34) 8.21
-------- --------- -------- -------- -------- --------
0.71 3.04 8.56 (3.98) (2.14) 8.43
-------- --------- -------- -------- -------- --------
(0.33) (0.04) -- (0.17) (0.13) --
(0.43) -- -- (1.02) (5.07) (4.13)
-------- --------- -------- -------- -------- --------
(0.76) (0.04) -- (1.19) (5.20) (4.13)
-------- --------- -------- -------- -------- --------
$ 35.34 $ 35.39 $ 32.39 $ 23.83 $ 29.00 $ 36.34
======== ========= ======== ======== ======== ========
1.88% 9.39% 35.92% (14.65)% (6.22)% 29.11%
$558,997 $ 515,464 $349,363 $195,029 $176,303 $148,954
0.57%(6) 0.61% 0.67% 0.70% 0.68% 0.70%
1.57%(6) 0.50% 0.49% 0.42% 0.71% 0.59%
8% 12% 14% 16% 27% 42%
0.57%(6) 0.61% 0.67% 0.70% 0.68% 0.70%
See Notes to Financial Statements.
107
FINANCIAL HIGHLIGHTS
For a Fund share outstanding throughout each period.
CLASS A
------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 --------------------------------------------------------
MID CAP STOCK FUND (UNAUDITED) 2004 2003 2002 2001 2000 (3)
----------- -------- -------- -------- ------ --------
NET ASSET VALUE, BEGINNING OF PERIOD............... $ 17.06 $ 15.34 $ 12.39 $ 13.50 $12.58 $ 10.00
----------- -------- -------- -------- ------ --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss)................... 0.16(5) 0.02(5) 0.01(5) (0.01)(5) (0.03)(5) (0.02)(5)
Net realized and unrealized gain/(loss) on
investments.................................. 0.84 1.75 2.94 (0.60) 1.00 2.60
----------- -------- -------- -------- ------ --------
Total from investment operations............... 1.00 1.77 2.95 (0.61) 0.97 2.58
----------- -------- -------- -------- ------ --------
LESS DISTRIBUTIONS:
Dividends from net investment income........... (0.03) (0.01) -- -- -- --
Distributions from net realized capital
gains........................................ (0.60) (0.04) -- (0.50) (0.05) --
----------- -------- -------- -------- ------ --------
Total distributions............................ (0.63) (0.05) -- (0.50) (0.05) --
----------- -------- -------- -------- ------ --------
NET ASSET VALUE, END OF PERIOD..................... $ 17.43 $ 17.06 $ 15.34 $ 12.39 $13.50 $ 12.58
=========== ======== ======== ======== ====== ========
TOTAL RETURN(1).................................... 5.83% 11.57% 23.81% (4.86)% 7.71% 25.80%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)............ $ 69,976 $ 59,491 $ 38,676 $ 28,248 $6,165 $ 2,451
Ratio of operating expenses to average net
assets....................................... 1.12%(6) 1.14% 1.16% 1.25% 1.36% 1.40%(6)
Ratio of net investment income/(loss)
to average net assets........................ 1.80%(6) 0.12% 0.07% (0.10)% (0.25)% (0.29)%(6)
Portfolio turnover rate........................ 15% 23% 28% 27% 33% 9%
Ratio of operating expenses to average net
assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2).................. 1.12%(6) 1.14% 1.16% 1.25% 1.36% 1.40%(6)
CLASS B
------------------------
SIX MONTHS
ENDED
04/30/05
MID CAP STOCK FUND (UNAUDITED) 2004
----------- --------
NET ASSET VALUE, BEGINNING OF PERIOD............... $ 16.33 $ 14.82
----------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss)................... 0.07(5) (0.14)(5)
Net realized and unrealized gain/(loss) on
investments.................................. 0.80 1.69
----------- --------
Total from investment operations............... 0.87 1.55
----------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income........... -- --
Distributions from net realized capital
gains........................................ (0.60) (0.04)
----------- --------
Total distributions............................ (0.60) (0.04)
----------- --------
NET ASSET VALUE, END OF PERIOD..................... $ 16.60 $ 16.33
=========== ========
TOTAL RETURN(1).................................... 5.29% 10.54%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)............ $ 20,957 $ 19,958
Ratio of operating expenses to average net
assets....................................... 2.14%(6) 2.12%
Ratio of net investment income/(loss)
to average net assets........................ 0.78%(6) (0.86)%
Portfolio turnover rate........................ 15% 23%
Ratio of operating expenses to average net
assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2).................. 2.14%(6) 2.12%
CLASS A
--------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ----------------------------------------------------------
GROWTH FUND (UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, BEGINNING OF PERIOD............... $ 14.44 $ 13.71 $ 11.47 $ 15.23 $ 32.78 $ 29.71
----------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss)................... 0.04(5) (0.06)(5) (0.08)(5) (0.10)(5) (0.09)(5) (0.14)(5)
Net realized and unrealized gain/(loss) on
investments.................................. 0.22 0.79 2.32 (3.66) (13.13) 7.04
----------- -------- -------- -------- -------- --------
Total from investment operations............... 0.26 0.73 2.24 (3.76) (13.22) 6.90
----------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income........... (0.05) -- -- -- (0.20) --
Distributions from net realized capital gains.. -- -- -- -- (4.13) (3.83)
----------- -------- -------- -------- -------- --------
Total distributions............................ (0.05) -- -- -- (4.33) (3.83)
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD..................... $ 14.65 $ 14.44 $ 13.71 $ 11.47 $ 15.23 $ 32.78
=========== ======== ======== ======== ======== ========
TOTAL RETURN(1).................................... 1.81% 5.32% 19.53% (24.69)% (45.77)% 24.21%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)............ $ 121,984 $124,755 $114,757 $ 94,848 $151,893 $341,777
Ratio of operating expenses to average net
assets....................................... 1.44%(6) 1.44% 1.62% 1.69% 1.52% 1.30%
Ratio of net investment income/(loss)
to average net assets........................ 0.54%(6) (0.43)% (0.66)% (0.74)% (0.43)% (0.39)%
Portfolio turnover rate........................ 52% 56% 71% 170% 99% 92%
Ratio of operating expenses to average net
assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2).................. 1.44%(6) 1.44% 1.62% 1.69% 1.52% 1.36%
CLASS B
-------------------------
SIX MONTHS
ENDED
04/30/05
GROWTH FUND (UNAUDITED) 2004
----------- --------
NET ASSET VALUE, BEGINNING OF PERIOD............... $ 13.03 $ 12.49
----------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss)................... (0.03)(5) (0.17)(5)
Net realized and unrealized gain/(loss) on
investments.................................. 0.21 0.71
----------- --------
Total from investment operations............... 0.18 0.54
----------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income........... (0.03) --
Distributions from net realized capital gains.. -- --
----------- --------
Total distributions............................ (0.03) --
----------- --------
NET ASSET VALUE, END OF PERIOD..................... $ 13.18 $ 13.03
=========== ========
TOTAL RETURN(1).................................... 1.32% 4.40%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)............ $ 100,162 $110,794
Ratio of operating expenses to average net
assets....................................... 2.39%(6) 2.35%
Ratio of net investment income/(loss)
to average net assets........................ (0.41)%(6) (1.34)%
Portfolio turnover rate........................ 52% 56%
Ratio of operating expenses to average net
assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2).................. 2.39%(6) 2.35%
- ------------
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges.
The total returns would have been lower if certain fees had not been
waived and/or expenses reimbursed by the investment advisor or if fees had
not been reduced by credits allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The Mid Cap Stock Fund commenced operations on March 1, 2000.
(4) The Funds commenced selling Class C shares on March 1, 2002.
(5) Per share numbers have been calculated using the average shares method.
(6) Annualized.
(7) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
108
CLASS C
------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- ------------------------------------------------ 04/30/05 --------------------------------
2003 2002 2001 2000(3) (UNAUDITED) 2004 2003 2002(4)
- -------- --------- -------- -------- ----------- ------- ------- --------
$ 12.09 $ 13.31 $ 12.51 $ 10.00 $ 16.36 $ 14.83 $ 12.10 $ 13.60
- -------- --------- -------- -------- ----------- ------- ------- --------
(0.13)(5) (0.15)(5) (0.15)(5) (0.08)(5) 0.08(5) (0.13)(5) (0.12)(5) (0.10)(5)
2.86 (0.57) 1.00 2.59 0.80 1.70 2.85 (1.40)
- -------- --------- -------- -------- ----------- ------- ------- --------
2.73 (0.72) 0.85 2.51 0.88 1.57 2.73 (1.50)
- -------- --------- -------- -------- ----------- ------- ------- --------
-- -- -- -- -- -- -- --
-- (0.50) (0.05) -- (0.60) (0.04) -- --
- -------- --------- -------- -------- ----------- ------- ------- --------
-- (0.50) (0.05) -- (0.60) (0.04) -- --
- -------- --------- -------- -------- ----------- ------- ------- --------
$ 14.82 $ 12.09 $ 13.31 $ 12.51 $ 16.64 $ 16.36 $ 14.83 $ 12.10
======== ========= ======== ======== =========== ======= ======= ========
22.50% (5.79)% 6.79% 25.10% 5.35% 10.60% 22.56% (11.03)%
$ 17,405 $ 13,229 $ 10,271 $ 3,778 $ 2,198 $ 1,769 $ 550 $ 55
2.24% 2.26% 2.17% 2.16%(6) 2.01%(6) 2.04% 2.15% 2.24%(6)
(1.01)% (1.11)% (1.06)% (1.05)%(6) 0.91%(6) (0.79)% (0.92)% (1.09)%(6)
28% 27% 33% 9% 15% 23% 28% 27%
2.24% 2.26% 2.17% 2.16%(6) 2.01%(6) 2.04% 2.15% 2.24%(6)
CLASS I
- ------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 --------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000 (3)
- ----------- -------- -------- -------- -------- --------
$ 17.26 $ 15.50 $ 12.51 $ 13.59 $ 12.62 $ 10.00
- ----------- -------- -------- -------- -------- --------
0.19(5) 0.08(5) 0.06(5) 0.04(5) 0.04(5) 0.02(5)
0.85 1.78 2.97 (0.60) 1.00 2.60
- ----------- -------- -------- -------- -------- --------
1.04 1.86 3.03 (0.56) 1.04 2.62
- ----------- -------- -------- -------- -------- --------
(0.08) (0.06) (0.04) (0.02) (0.02) --
(0.60) (0.04) -- (0.50) (0.05) --
- ----------- -------- -------- -------- -------- --------
(0.68) (0.10) (0.04) (0.52) (0.07) --
- ----------- -------- -------- -------- -------- --------
$ 17.62 $ 17.26 $ 15.50 $ 12.51 $ 13.59 $ 12.62
=========== ======== ======== ======== ======== ========
5.98% 12.02% 24.27% (4.44)% 8.29% 26.20%
$ 698,858 $616,052 $369,772 $231,409 $220,052 $176,653
0.79%(6) 0.80% 0.81% 0.83% 0.81% 0.88%(6)
2.13%(6) 0.45% 0.42% 0.32% 0.30% 0.23%(6)
15% 23% 28% 27% 33% 9%
0.79%(6) 0.80% 0.81% 0.83% 0.81% 0.88%(6)
CLASS C
-------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- ------------------------------------------------ 04/30/05 --------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002(4)
- -------- --------- -------- -------- ----------- ------- ------- --------
$ 10.55 $ 14.13 $ 30.78 $ 28.29 $ 13.13 $ 12.55 $ 10.56 $ 13.48
- -------- --------- -------- -------- ----------- ------- ------- --------
(0.18)(5) (0.21)(5) (0.24)(5) (0.38)(5) (0.01)(5) (0.15)(5) (0.14)(5) (0.11)(5)
2.12 (3.37) (12.24) 6.70 0.21 0.73 2.13 (2.81)
- -------- --------- -------- -------- ----------- ------- ------- --------
1.94 (3.58) (12.48) 6.32 0.20 0.58 1.99 (2.92)
- -------- --------- -------- -------- ----------- ------- ------- --------
-- -- (0.04) -- (0.04) -- -- --
-- -- (4.13) (3.83) -- -- -- --
- -------- --------- -------- -------- ----------- ------- ------- --------
-- -- (4.17) (3.83) (0.04) -- -- --
- -------- --------- -------- -------- ----------- ------- ------- --------
$ 12.49 $ 10.55 $ 14.13 $ 30.78 $ 13.29 $ 13.13 $ 12.55 $ 10.56
======== ========= ======== ======== =========== ======= ======= ========
18.39% (25.34)% (46.19)% 23.28% 1.52% 4.62% 18.85% (21.66)%
$129,239 $ 128,007 $220,108 $481,935 $ 2,498 $ 1,981 $ 565 $ 199
2.54% 2.54% 2.31% 2.05% 2.12%(6) 2.14% 2.19% 2.38%(6)
(1.58)% (1.59)% (1.22)% (1.14)% (0.14)%(6) (1.13)% (1.23)% (1.43)%(6)
71% 170% 99% 92% 52% 56% 71% 170%
2.54% 2.54% 2.31% 2.11% 2.12%(6) 2.14% 2.19% 2.38%(6)
CLASS I
- --------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ----------------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- ----------- ----------- --------- ---------- ---------- ----------
$ 14.96 $ 14.13 $ 11.74 $ 15.48 $ 33.23 $ 29.96
- ----------- ----------- --------- ---------- ---------- ----------
0.09(5) 0.02(5) 0.00(5)(7) (0.01)(5) 0.02(5) 0.01(5)
0.24 0.81 2.39 (3.73) (13.31) 7.09
- ----------- ----------- --------- ---------- ---------- ----------
0.33 0.83 2.39 (3.74) (13.29) 7.10
- ----------- ----------- --------- ---------- ---------- ----------
(0.07) -- -- -- (0.33) --
-- -- -- -- (4.13 (3.83)
- ----------- ----------- --------- ---------- ---------- ----------
(0.07) -- -- -- (4.46) (3.83)
- ----------- ----------- --------- ---------- ---------- ----------
$ 15.22 $ 14.96 $ 14.13 $ 11.74 $ 15.48 $ 33.23
=========== =========== ========= ========== ========== ==========
2.18% 5.95% 20.27% (24.16)% (45.50)% 24.73%
$ 1,405,942 $ 1,281,900 $ 664,334 $ 357,296 $ 203,646 $ 399,028
0.83%(6) 0.86% 0.92% 1.03% 1.00% 0.90%
1.15%(6) 0.15% 0.04% (0.08)% 0.09% 0.01%
52% 56% 71% 170% 99% 92%
0.83%(6) 0.86% 0.92% 1.03% 1.00% 0.96%
See Notes to Financial Statements.
109
Financial Highlights
For a Fund share outstanding throughout each period.
CLASS A CLASS B
------------------------------ --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
04/30/05 OCTOBER 31 04/30/05 OCTOBER 31
SMALL CAP VALUE FUND (UNAUDITED) 2004 (3) (UNAUDITED) 2004 (3)
------------ ----------- ----------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 10.81 $ 10.00 $ 10.74 $ 10.00
------------ ----------- ----------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss)............................ 0.03(4) 0.05(4) (0.02)(4) (0.01)(4)
Net realized and unrealized gain on investments......... 0.94 0.76 0.94 0.75
------------ ----------- ----------- ----------
Total from investment operations....................... 0.97 0.81 0.92 0.74
------------ ----------- ----------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income.................... (0.10) -- (0.06) --
Distributions from net realized capital gains........... -- -- -- --
------------ ----------- ----------- ----------
Total distributions..................................... (0.10) -- (0.06) --
------------ ----------- ----------- ----------
NET ASSET VALUE, END OF PERIOD.............................. $ 11.68 $ 10.81 $ 11.60 $ 10.74
============ =========== =========== ==========
TOTAL RETURN(1)............................................. 8.95% 8.10% 8.55% 7.40%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)..................... $ 8,183 $ 2,978 $ 1,974 $ 631
Ratio of operating expenses to average net assets....... 1.30%(6) 1.33%(6) 2.18%(6) 2.23%(6)
Ratio of net investment income/(loss)
to average net assets................................. 0.47%(6) 0.77%(6) (0.41)%(6) (0.13)%(6)
Portfolio turnover rate................................. 24% 36% 24% 36%
Ratio of operating expenses to average net assets
without fee waivers, expenses reimbursed and/or
fees reduced by credits allowed by the custodian(2) 1.30%(6) 1.33%(6) 2.18%(6) 2.23%(6)
CLASS A
---------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ----------------------------------------------------------------
SMALL CAP GROWTH FUND (UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD........... $ 13.00 $ 13.42 $ 8.21 $ 13.60 $ 26.67 $ 19.61
----------- -------- -------- -------- -------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss........................ (0.07) (0.14)(4) (0.09)(4) (0.14)(4) (0.20) (0.27)(4)
Net realized and unrealized gain/
(loss) on investments (1.15) (0.28) 5.30 (4.28) (9.56) 10.01
----------- -------- -------- -------- -------- ---------
Total from investment operations........... (1.22) (0.42) 5.21 (4.42) (9.76) 9.74
----------- -------- -------- -------- -------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income....... -- -- -- -- -- --
Distributions from net realized capital
gains...................................... -- -- -- (0.97) (3.31) (2.68)
----------- -------- -------- -------- -------- ---------
Total Distributions........................ -- -- -- (0.97) (3.31) (2.68)
----------- -------- -------- -------- -------- ---------
NET ASSET VALUE, END OF PERIOD................. $ 11.78 $ 13.00 $ 13.42 $ 8.21 $ 13.60 $ 26.67
=========== ======== ======== ======== ======== =========
TOTAL RETURN(1)................................ (9.39)% (3.13)% 63.46% (35.71)% (40.84)% 53.57%
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)........ $ 76,809 $ 92,919 $ 81,234 $ 42,984 $ 66,262 $ 132,274
Ratio of operating expenses to average
net assets................................. 1.51%(6) 1.46% 1.64% 1.68% 1.52% 1.42%
Ratio of net investment loss to average
net assets................................. (1.01)%(6) (1.01)% (0.86)% (1.20)% (1.03)% (0.96)%
Portfolio turnover rate.................... 205% 53% 40% 21% 46% 49%
Ratio of operating expenses to average
net assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2) 1.51%(6) 1.46% 1.64% 1.68% 1.52% 1.43%
CLASS B
----------------------------
SIX MONTHS
ENDED
04/30/05 ---------
SMALL CAP GROWTH FUND (UNAUDITED) 2004
----------- ---------
NET ASSET VALUE, BEGINNING OF PERIOD........... $ 11.46 $ 11.96
----------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss........................ (0.14) (0.26)(4)
Net realized and unrealized gain/
(loss) on investments (1.00) (0.24)
----------- ---------
Total from investment operations........... (1.14) (0.50)
----------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income....... -- --
Distributions from net realized capital
gains...................................... -- --
----------- ---------
Total Distributions........................ -- --
----------- ---------
NET ASSET VALUE, END OF PERIOD................. $ 10.32 $ 11.46
=========== =========
TOTAL RETURN(1)................................ (9.95)% (4.18)%
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)........ $ 9,286 $ 12,181
Ratio of operating expenses to average
net assets................................. 2.63%(6) 2.54%
Ratio of net investment loss to average
net assets................................. (2.13)%(6) (2.09)%
Portfolio turnover rate.................... 205% 53%
Ratio of operating expenses to average
net assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2) 2.63%(6) 2.54%
- --------------------
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges.
The total returns would have been lower if certain fees had not been
waived and/or expenses reimbursed by the investment advisor or if fees had
not been reduced by credits allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The Small Cap Value Fund commenced operations on March 1,2004.
(4) Per share numbers have been calculated using the average shares method.
(5) Amount represents less than $0.01 per share.
(6) Annualized.
(7) The Small Cap Growth Fund commenced selling Class C shares on March
1,2002.
(8) The Small Cap Growth Fund commenced selling Class I shares on January
5,2000.
See Notes to Financial Statements.
110
CLASS C CLASS I
- -------------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
04/30/05 OCTOBER 31 04/30/05 OCTOBER 31
UNAUDITED) 2004 (3) (UNAUDITED) 2004 (3)
- ----------- ------------ ----------- ----------
$ 10.76 $ 10.00 $ 10.83 $ 10.00
- ----------- ------------ ----------- ----------
(0.02)(4) (0.00)(4)(5) 0.05(4) 0.08(4)
0.93 0.76 0.95 0.75
- ----------- ------------ ----------- ----------
0.91 0.76 1.00 0.83
- ----------- ------------ ----------- ----------
(0.05) -- (0.11) --
-- -- -- --
- ----------- ------------ ----------- ----------
(0.05) -- (0.11) --
- ----------- ------------ ----------- ----------
$ 11.62 $ 10.76 $ 11.72 $ 10.83
=========== ============ =========== ==========
8.45% 7.60% 9.23% 8.30%
$ 737 $ 414 $ 305,796 $ 268,310
2.18%(6) 2.13%(6) 0.91%(6) 0.95%(6)
(0.41)%(6) (0.03)%(6) 0.86%(6) 1.15%(6)
24% 36% 24% 36%
2.18%(6) 2.13%(6) 0.91%(6) 0.95%(6)
CLASS C
- -------------------------------------------------- --------------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- -------------------------------------------------- 04/30/05 --------------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002 (7)
- -------- -------- -------- ---------- ----------- --------- -------- ----------
$ 7.40 $ 12.46 $ 24.93 $ 18.61 $ 11.59 $ 12.06 $ 7.42 $ 11.51
- -------- -------- -------- ---------- ----------- --------- -------- ----------
(0.18)(4) (0.23)(4) (0.32) (0.47)(4) (0.13) (0.23)(4) (0.14)(4) (0.10)(4)
4.74 (3.86) (8.84) 9.47 (1.00) (0.24) 4.78 (3.99)
- -------- -------- -------- ---------- ----------- --------- -------- ----------
4.56 (4.09) (9.16) 9.00 (1.13) (0.47) 4.64 (4.09)
- -------- -------- -------- ---------- ----------- --------- -------- ----------
-- -- -- -- -- -- -- --
-- (0.97) (3.31) (2.68) -- -- -- --
- -------- -------- -------- ---------- ----------- --------- -------- ----------
-- (0.97) (3.31) (2.68) -- -- -- --
- -------- -------- -------- ---------- ----------- --------- -------- ----------
$ 11.96 $ 7.40 $ 12.46 $ 24.93 $ 10.46 $ 11.59 $ 12.06 $ 7.42
======== ======== ======== ========== =========== ========= ======== ==========
61.62% (36.36)% (41.35)% 52.34% (9.75)% (3.90)% 62.53% (35.53)%
$ 18,037 $ 14,238 $ 29,346 $ 54,407 $ 669 $ 871 $ 404 $ 69
2.81% 2.64% 2.42% 2.24% 2.35%(6) 2.28% 2.28% 2.25%(6)
(2.03)% (2.16)% (1.93)% (1.78)% (1.85)%(6) (1.83)% (1.50)% (1.77)%(6)
40% 21% 46% 49% 205% 53% 40% 21%
2.81% 2.64% 2.42% 2.25% 2.35%(6) 2.28% 2.28% 2.25%(6)
CLASS I
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ---------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000 (8)
- ----------- -------- -------- -------- --------- ---------
$ 13.39 $ 13.76 $ 8.35 $ 13.74 $ 26.77 $ 24.98
- ----------- -------- -------- -------- --------- ---------
(0.04) (0.07)(4) (0.02)(4) (0.06)(4) (0.06) (0.15)(4)
(1.18) (0.30) 5.43 (4.36) (9.66) 1.94
- ----------- -------- -------- -------- --------- ---------
(1.22) (0.37) 5.41 (4.42) (9.72) 1.79
- ----------- -------- -------- -------- --------- ---------
-- -- -- -- -- --
-- -- -- (0.97) (3.31) --
- ----------- -------- -------- -------- --------- ---------
-- -- -- (0.97) (3.31) --
- ----------- -------- -------- -------- --------- ---------
$ 12.17 $ 13.39 $ 13.76 $ 8.35 $ 13.74 $ 26.77
=========== ======== ======== ======== ========= =========
(9.11)% (2.62)% 64.67% (35.32)% (40.49)% 7.21%
$ 193,095 $237,582 $337,271 $123,620 $ 134,462 $ 150,073
0.98%(6) 0.95% 0.96% 1.00% 0.97% 0.98%(6)
(0.48)%(6) (0.50)% (0.18)% (0.52)% (0.48)% (0.52)%(6)
205% 53% 40% 21% 46% 49%
0.98%(6) 0.95% 0.96% 1.00% 0.97% 0.99%(6)
See Notes to Financial Statements.
111
Financial Highlights
For a Fund share outstanding throughout each period.
CLASS A
--------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ----------------------------------------------------------
INTERNATIONAL GROWTH FUND (UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, BEGINNING OF PERIOD ............ $ 9.21 $ 8.38 $ 6.76 $ 7.61 $ 10.97 $ 11.14
----------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) ................ 0.05(4) 0.06(4) 0.03(4) (0.02)(4) (0.02) (0.03)(4)
Net realized and unrealized gain/(loss) on
investments................................. 0.45 0.85 1.63 (0.75) (2.67) 0.00(5)
----------- -------- -------- -------- -------- --------
Total from investment operations ............ 0.50 0.91 1.66 (0.77) (2.69) (0.03)
----------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........ (0.09) (0.08) (0.04) (0.08) (0.01) (0.14)
Distributions from net realized capital gains - - - - (0.66) (0.00)(5)
----------- -------- -------- -------- -------- --------
Total distributions ......................... (0.09) (0.08) (0.04) (0.08) (0.67) (0.14)
----------- -------- -------- -------- -------- --------
Redemption Fees ............................. - 0.00(5) 0.00(5) 0.00(5) - -
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD .................. $ 9.62 $ 9.21 $ 8.38 $ 6.76 $ 7.61 $ 10.97
=========== ======== ======== ======== ======== ========
TOTAL RETURN(1) ................................. 5.67% 10.89% 24.75% (10.36)% (25.99)% (0.43)%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s) ......... $ 45,851 $ 38,864 $ 26,429 $ 21,317 $ 16,636 $ 28,997
Ratio of operating expenses to average net
assets...................................... 1.41%(6) 1.49% 1.70% 1.93% 1.93% 1.78%
Ratio of net investment income/(loss) to
average net assets ......................... 0.95%(6) 0.68% 0.47% (0.20)% (0.25)% (0.25)%
Portfolio turnover rate ..................... 14% 20% 19% 25% 27% 37%
Ratio of operating expenses to average net
assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2) ................ 1.41%(6) 1.49% 1.70% 1.93% 1.93% 1.78%
CLASS B
-----------------------
SIX MONTHS
ENDED
04/30/05
INTERNATIONAL GROWTH FUND (UNAUDITED) 2004
----------- -------
NET ASSET VALUE, BEGINNING OF PERIOD ............ $ 8.80 $ 8.03
----------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) ................ (0.01)(4) (0.04)(4)
Net realized and unrealized gain/(loss) on
investments................................. 0.44 0.81
----------- --------
Total from investment operations ............ 0.43 0.77
----------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........ - -
Distributions from net realized capital gains - -
----------- --------
Total distributions ......................... - -
----------- --------
Redemption Fees ............................. - 0.00(5)
----------- --------
NET ASSET VALUE, END OF PERIOD .................. $ 9.23 $ 8.80
=========== ========
TOTAL RETURN(1) ................................. 5.11% 9.59%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s) ......... $ 4,391 $ 3,630
Ratio of operating expenses to average net
assets...................................... 2.48%(6) 2.62%
Ratio of net investment income/(loss) to
average net assets ......................... (0.12)%(6) (0.45)%
Portfolio turnover rate ..................... 14% 20%
Ratio of operating expenses to average net
assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2) ................ 2.48%(6) 2.62%
CLASS A
--------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ----------------------------------------------------------
SHORT TERM INCOME FUND (UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, BEGINNING OF PERIOD ............ $ 2.38 $ 2.39 $ 2.34 $ 2.41 $ 2.29 $ 2.29
----------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ....................... 0.04 0.08 0.09 0.12 0.13 0.13
Net realized and unrealized gain/(loss) on
investments................................ (0.04) (0.01) 0.06 (0.07) 0.12 (0.00)(5)
----------- -------- -------- -------- -------- --------
Total from investment operations ............ 0.00(5) 0.07 0.15 0.05 0.25 0.13
----------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........ (0.04) (0.08) (0.10) (0.12) (0.13) (0.13)
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD .................. $ 2.34 $ 2.38 $ 2.39 $ 2.34 $ 2.41 $ 2.29
=========== ======== ======== ======== ======== ========
TOTAL RETURN(1) ................................ (0.30)% 2.87% 6.28% 2.18% 11.31% (5.70)%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s) ......... $ 42,910 $ 54,082 $ 71,920 $ 28,106 $ 18,929 $ 20,224
Ratio of operating expenses to average net 0.82%(6) 0.83% 0.84% 0.96% 0.83% 0.99%
assets ....................................
Ratio of net investment income to average net 3.28%(6) 3.23% 3.58% 5.03% 5.63% 5.55%
assets ....................................
Portfolio turnover rate ..................... 6% 14% 33% 28% 27% 14%
Ratio of operating expenses to average net
assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2) ............... 0.94%(6) 0.92% 0.97% 1.09% 1.15% 1.29%
CLASS B
-----------------------
SIX MONTHS
ENDED
04/30/05
SHORT TERM INCOME FUND (UNAUDITED) 2004
----------- --------
NET ASSET VALUE, BEGINNING OF PERIOD ............ $ 2.38 $ 2.39
----------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ....................... 0.03 0.06
Net realized and unrealized gain/(loss) on
investments................................ (0.04) (0.01)
----------- --------
Total from investment operations ............ (0.01) 0.05
----------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ........ (0.03) (0.06)
----------- --------
NET ASSET VALUE, END OF PERIOD .................. $ 2.34 $ 2.38
=========== ========
TOTAL RETURN(1) ................................ (0.40)% 2.11%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s) ......... $ 26,800 $ 31,812
Ratio of operating expenses to average net 1.57%(6) 1.58%
assets ....................................
Ratio of net investment income to average net 2.53%(6) 2.48%
assets ....................................
Portfolio turnover rate ..................... 6% 14%
Ratio of operating expenses to average net
assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2) ............... 1.71%(6) 1.70%
- -----------------
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges.
The total returns would have been lower if certain fees had not been
waived and/or expenses reimbursed by the investment advisor or if fees had
not been reduced by credits allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The Funds commenced selling Class C shares on March 1, 2002.
(4) Per share numbers have been calculated using the average shares method.
(5) Amount represents less than $0.01 per share.
(6) Annualized.
See Notes to Financial Statements.
112
CLASS C
-----------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- -------------------------------------------- 04/30/05 ----------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002(3)
- ------- ------- ------- -------- ----------- ------- ------- --------
$ 6.51 $ 7.35 $ 10.70 $ 10.87 $ 8.75 $ 8.02 $ 6.53 $ 7.55
- ------- ------- ------- -------- ----------- ------- ------- --------
(0.05)(4) (0.09)(4) (0.10) (0.12)(4) 0.00(4)(5) (0.02)(4) (0.03)(4) (0.05)(4)
1.57 (0.73) (2.58) 0.02 0.43 0.81 1.56 (0.96)
- ------- ------- ------- -------- ----------- ------- ------- --------
1.52 (0.82) (2.68) (0.10) 0.43 0.79 1.53 (1.01)
- ------- ------- ------- -------- ----------- ------- ------- --------
- (0.02) (0.01) (0.07) (0.06) (0.06) (0.04) (0.01)
- - (0.66) (0.00)(5) - - - -
- ------- ------- ------- -------- ----------- ------- ------- --------
- (0.02) (0.67) (0.07) (0.06) (0.06) (0.04) (0.01)
- ------- ------- ------- -------- ----------- ------- ------- --------
0.00(5) 0.00(5) - - - 0.00(5) 0.00(5) 0.00(5)
- ------- ------- ------- -------- ----------- ------- ------- --------
$ 8.03 $ 6.51 $ 7.35 $ 10.70 $ 9.12 $ 8.75 $ 8.02 $ 6.53
======= ======= ======= ======== =========== ======= ======= ========
23.35% (11.23)% (26.68)% (1.03)% 5.22% 9.87% 23.57% (13.34)%
$ 4,020 $ 4,732 $ 7,172 $ 12,272 $ 841 $ 445 $ 91 $ 53
2.91% 2.91% 2.74% 2.48% 2.33%(6) 2.36% 2.64% 2.67%(6)
(0.74)% (1.18)% (1.06)% (0.95)% 0.03%(6) (0.19)% (0.47)% (0.94)%(6)
19% 25% 27% 37% 14% 20% 19% 25%
2.91% 2.91% 2.74% 2.48% 2.33%(6) 2.36% 2.64% 2.67%(6)
CLASS I
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ----------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- ----------- --------- --------- --------- --------- ---------
$ 9.26 $ 8.43 $ 6.80 $ 7.69 $ 11.00 $ 11.16
- ----------- --------- --------- --------- --------- ---------
0.07(4) 0.11(4) 0.08(4) 0.04(4) 0.04 0.05(4)
0.46 0.84 1.64 (0.75) (2.68) 0.00(5)
- ----------- --------- --------- --------- --------- ---------
0.53 0.95 1.72 (0.71) (2.64) 0.05
- ----------- --------- --------- --------- --------- ---------
(0.13) (0.12) (0.09) (0.18) (0.01) (0.21)
- - - - (0.66) (0.00)(5)
- ----------- --------- --------- --------- --------- ---------
(0.13) (0.12) (0.09) (0.18) (0.67) (0.21)
- ----------- --------- --------- --------- --------- ---------
- 0.00(5) 0.00(5) 0.00(5) - -
- ----------- --------- --------- --------- --------- ---------
$ 9.66 $ 9.26 $ 8.43 $ 6.80 $ 7.69 $ 11.00
=========== ========= ========= ========= ========= =========
5.95% 11.38% 25.56% (9.61)% (25.53)% 0.26%
$ 643,235 $ 539,471 $ 317,493 $ 185,137 $ 124,886 $ 145,176
0.95%(6) 0.99% 1.07% 1.19% 1.18% 1.14%
1.41%(6) 1.18% 1.10% 0.54% 0.50% 0.39%
14% 20% 19% 25% 27% 37%
0.95%(6) 0.99% 1.07% 1.19% 1.18% 1.14%
CLASS C
-----------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- -------------------------------------------- 04/30/05 ----------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002(3)
- ------- ------- ------- -------- ----------- ------- ------- --------
$ 2.34 $ 2.41 $ 2.29 $ 2.29 $ 2.38 $ 2.39 $ 2.34 $ 2.37
- ------- ------- ------- -------- ----------- ------- ------- --------
0.07 0.10 0.12 0.11 0.03 0.06 0.07 0.07
0.06 (0.07) 0.12 (0.00)(5) (0.04) (0.01) 0.06 (0.03)
- ------- ------- ------- -------- ----------- ------- ------- --------
0.13 0.03 0.24 0.11 (0.01) 0.05 0.13 0.04
- ------- ------- ------- -------- ----------- ------- ------- --------
(0.08) (0.10) (0.12) (0.11) (0.03) (0.06) (0.08) (0.07)
- ------- ------- ------- -------- ----------- ------- ------- --------
$ 2.39 $ 2.34 $ 2.41 $ 2.29 $ 2.34 $ 2.38 $ 2.39 $ 2.34
======= ======= ======= ======== =========== ======= ======= ========
5.49% 1.41% 10.52% 5.12% (0.40)% 2.10% 5.48% 1.61%
$44,310 $24,621 $ 6,595 $ 3,461 $ 16,767 $18,970 $17,843 $ 5,743
1.59% 1.71% 1.54% 1.55% 1.57%(6) 1.58% 1.59% 1.68%(6)
2.83% 4.28% 4.92% 4.99% 2.53%(6) 2.48% 2.83% 4.31%(6)
33% 28% 27% 14% 6% 14% 33% 28%
1.70% 1.77% 1.86% 1.85% 1.66%(6) 1.66% 1.65% 1.68%(6)
CLASS I
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ----------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- ----------- --------- --------- --------- --------- ---------
$ 2.38 $ 2.39 $ 2.34 $ 2.41 $ 2.29 $ 2.29
- ----------- --------- --------- --------- --------- ---------
0.04 0.08 0.09 0.13 0.15 0.14
(0.04) (0.01) 0.06 (0.07) 0.12 (0.00)(5)
- ----------- --------- --------- --------- --------- ---------
0.00(5) 0.07 0.15 0.06 0.27 0.14
- ----------- --------- --------- --------- --------- ---------
(0.04) (0.08) (0.10) (0.13) (0.15) (0.14)
- ----------- --------- --------- --------- --------- ---------
$ 2.34 $ 2.38 $ 2.39 $ 2.34 $ 2.41 $ 2.29
=========== ========= ========= ========= ========= =========
0.10% 3.13% 6.55% 2.53% 11.93% 6.43%
$ 184,032 $ 168,947 $ 129,443 $ 89,210 $ 110,710 $ 93,741
0.57%(6) 0.58% 0.59% 0.61% 0.27% 0.30%
3.53%(6) 3.48% 3.83% 5.38% 6.19% 6.24%
6% 14% 33% 28% 27% 14%
0.57%(6) 0.58% 0.59% 0.61% 0.59% 0.60%
See Notes to Financial Statements.
113
Financial Highlights
For a Fund share outstanding throughout each period.
CLASS A CLASS B
------------------------------------------------------------------ ------------------------
SIX MONTHS SIX MONTHS
ENDED YEARS ENDED OCTOBER 31 ENDED
04/30/05 ----------------------------------------------------- 04/30/05
U.S. GOVERNMENT SECURITIES FUND (UNAUDITED) 2004 2003 2002 2001 2000 (UNAUDITED) 2004
----------- ----------- ----------- --------- --------- --------- ------------ -----------
NET ASSET VALUE, BEGINNING OF
PERIOD................................ $ 10.88 $ 10.89 $ 11.19 $ 11.20 $ 10.55 $ 10.51 $ 10.87 $ 10.88
-------- -------- -------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................ 0.21 0.40(4) 0.40(4) 0.54 0.62 0.63 0.17 0.32(4)
Net realized and unrealized gain/
(loss) on investments............... (0.10) 0.05 (0.19) 0.04 0.65 0.04 (0.10) 0.05
-------- -------- -------- -------- -------- -------- -------- --------
Total from investment operations..... 0.11 0.45 0.21 0.58 1.27 0.67 0.07 0.37
-------- -------- -------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment
income.............................. (0.23) (0.46) (0.51) (0.59) (0.62) (0.63) (0.19) (0.38)
-------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD......... $ 10.76 $ 10.88 $ 10.89 $ 11.19 $ 11.20 $ 10.55 $ 10.75 $ 10.87
======== ======== ======== ======== ======== ======== ======== ========
TOTAL RETURN(1)........................ 1.02% 4.26% 1.94% 5.37% 12.39% 6.65% 0.65% 3.50%
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period
(in 000s)........................... $132,235 $134,896 $176,859 $196,222 $174,047 $168,728 $137,994 $157,900
Ratio of operating expenses to
average net assets.................. 0.93%(5) 0.93% 0.93% 0.96% 0.95% 0.96% 1.67%(5) 1.65%
Ratio of net investment income to
average net assets.................. 3.86%(5) 3.64% 3.59% 4.91% 5.71% 6.12% 3.12%(5) 2.92%
Portfolio turnover rate.............. 13% 30% 62% 48% 30% 13% 13% 30%
Ratio of operating expenses to
average net assets without fee
waivers, expenses reimbursed
and/or fees reduced by credits
allowed by the custodian(2)......... 0.93%(5) 0.93% 0.93% 0.96% 0.95% 0.99% 1.67%(5) 1.65%
CLASS A CLASS B
---------------------------------------------------------------- ----------------------
SIX MONTHS SIX MONTHS
ENDED YEARS ENDED OCTOBER 31 ENDED
04/30/05 --------------------------------------------------- 04/30/05
INCOME FUND (UNAUDITED) 2004 2003 2002 2001 2000 (UNAUDITED) 2004
----------- --------- --------- --------- --------- --------- ------------ ---------
NET ASSET VALUE, BEGINNING OF PERIOD...... $ 9.46 $ 9.35 $ 9.02 $ 9.32 $ 8.90 $ 8.99 $ 9.49 $ 9.37
-------- -------- -------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................... 0.22 0.46 0.51 0.60 0.62 0.62 0.19 0.39
Net realized and unrealized gain/
(loss) on investments.................. (0.19) 0.15 0.38 (0.28) 0.43 (0.09) (0.19) 0.16
-------- -------- -------- -------- -------- -------- -------- --------
Total from investment operations........ 0.03 0.61 0.89 0.32 1.05 0.53 0.00(6) 0.55
-------- -------- -------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income.... (0.23) (0.50) (0.56) (0.62) (0.63) (0.62) (0.20) (0.43)
Distributions from net realized
capital gains.......................... -- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- --------
Total distributions..................... (0.23) (0.50) (0.56) (0.62) (0.63) (0.62) (0.20) (0.43)
-------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD............. $ 9.26 $ 9.46 $ 9.35 $ 9.02 $ 9.32 $ 8.90 $ 9.29 $ 9.49
======== ======== ======== ======== ======== ======== ======== ========
TOTAL RETURN(1)............................ 0.40% 6.68% 10.10% 3.63% 12.21% 6.16% 0.04% 6.03%
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period (in 000s).... $146,261 $147,695 $153,654 $130,512 $120,508 $131,665 $139,653 $152,065
Ratio of operating expenses to
average net assets.................... 0.92%(5) 0.92% 0.94% 0.97% 0.97% 1.02% 1.66%(5) 1.65%
Ratio of net investment income to
average net assets.................... 4.79%(5) 4.90% 5.42% 6.61% 6.86% 6.98% 4.05%(5) 4.17%
Portfolio turnover rate................ 8% 24% 33% 20% 35% 32% 8% 24%
Ratio of operating expenses to average
net assets without fee waivers,
expenses reimbursed and/or fees
reduced by credits allowed by the
custodian(2).......................... 0.92%(5) 0.92% 0.94% 0.97% 0.97% 1.03% 1.66%(5) 1.65%
- ----------
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges.
The total returns would have been lower if certain fees had not been
waived and/or expenses reimbursed by the investment advisor or if fees had
not been reduced by credits allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The Funds commenced selling Class C shares on March 1, 2002.
(4) Per share numbers have been calculated using the average shares method.
(5) Annualized.
(6) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
114
CLASS C
-----------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- ------------------------------------------------- 04/30/05 --------------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002 (3)
- ----------- --------- --------- -------- ----------- --------- -------- -----------
$ 11.18 $ 11.19 $ 10.54 $ 10.50 $10.86 $10.87 $ 11.18 $ 11.00
- -------- -------- -------- ------- ------ ------ ------- -------
0.32(4) 0.46 0.54 0.56 0.17 0.32(4) 0.32(4) 0.33
(0.19) 0.04 0.65 0.04 (0.11) 0.05 (0.20) 0.18
- -------- -------- -------- ------- ------ ------ ------- -------
0.13 0.50 1.19 0.60 0.06 0.37 0.12 0.51
- -------- -------- -------- ------- ------ ------ ------- -------
(0.43) (0.51) (0.54) (0.56) (0.19) (0.38) (0.43) (0.33)
- -------- -------- -------- ------- ------ ------ ------- -------
$ 10.88 $ 11.18 $ 11.19 $ 10.54 $10.73 $10.86 $ 10.87 $ 11.18
======== ======== ======== ======= ====== ====== ======= =======
1.20% 4.62% 11.59% 5.91% 0.57% 3.53% 1.12% 4.74%
$251,153 $271,440 $128,155 $55,071 $6,245 $6,279 $13,354 $11,634
1.66% 1.68% 1.67% 1.66% 1.64%(5) 1.64% 1.64% 1.63%(5)
2.86% 4.19% 4.99% 5.42% 3.15%(5) 2.93% 2.88% 4.24%(5)
62% 48% 30% 13% 13% 30% 62% 48%
1.66% 1.68% 1.67% 1.69% 1.64%(5) 1.64% 1.64% 1.63%(5)
CLASS I
------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 -----------------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- ------------- ----------- --------- --------- ---------
$ 10.88 $ 10.89 $ 11.19 $ 11.20 $ 10.55 $ 10.51
---------- ---------- -------- -------- -------- --------
0.23 0.44(4) 0.44(4) 0.58 0.66 0.67
(0.10) 0.05 (0.19) 0.04 0.65 0.04
---------- ---------- -------- -------- -------- --------
0.13 0.49 0.25 0.62 1.31 0.71
---------- ---------- -------- -------- -------- --------
(0.25) (0.50) (0.55) (0.63) (0.66) (0.67)
---------- ---------- -------- -------- -------- --------
$ 10.76 $ 10.88 $ 10.89 $ 11.19 $ 11.20 $ 10.55
========== ========== ======== ======== ======== ========
1.22% 4.65% 2.32% 5.77% 12.81% 7.07%
$1,463,788 $1,260,104 $658,676 $365,912 $301,656 $247,204
0.54%(5) 0.55% 0.57% 0.58% 0.57% 0.56%
4.25%(5) 4.02% 3.95% 5.29% 6.09% 6.52%
13% 30% 62% 48% 30% 13%
0.54%(5) 0.55% 0.57% 0.58% 0.57% 0.59%
CLASS C
----------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- --------------------------------------------- 04/30/05 -------------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002 (3)
- --------- --------- -------- --------- ------------ --------- ---------- ----------
$ 9.04 $ 9.35 $ 8.92 $ 9.00 $ 9.49 $ 9.37 $ 9.04 $ 9.21
- -------- -------- ------- -------- -------- -------- --------- -------
0.44 0.54 0.56 0.56 0.19 0.39 0.45 0.37
0.38 (0.29) 0.44 (0.08) (0.19) 0.16 0.38 (0.17)
- -------- -------- ------- -------- -------- -------- --------- -------
0.82 0.25 1.00 0.48 0.00(6) 0.55 0.83 0.20
- -------- -------- ------- -------- -------- -------- --------- -------
(0.49) (0.56) (0.57) (0.56) (0.20) (0.43) (0.50) (0.37)
-- -- -- -- -- -- -- --
- -------- -------- ------- -------- -------- -------- --------- -------
(0.49) (0.56) (0.57) (0.56) (0.20) (0.43) (0.50) (0.37)
- -------- -------- ------- -------- -------- -------- --------- -------
$ 9.37 $ 9.04 $ 9.35 $ 8.92 $ 9.29 $ 9.49 $ 9.37 $ 9.04
======== ======== ======= ======== ======== ======== ========= =======
9.31% 2.79% 11.52% 5.53% 0.05% 6.02% 9.33% 2.25%
$194,396 $142,186 $72,472 $ 39,347 $ 10,986 $ 11,580 $ 15,274 $ 7,710
1.65% 1.68% 1.69% 1.73% 1.65%(5) 1.65% 1.63% 1.62%(5)
4.71% 5.90% 6.14% 6.27% 4.06%(5) 4.17% 4.73% 5.96%(5)
33% 20% 35% 32% 8% 24% 33% 20%
1.65% 1.68% 1.69% 1.74% 1.65%(5) 1.65% 1.63% 1.62%(5)
CLASS I
- -------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 ----------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- ------------ --------- --------- --------- --------- --------
$ 9.48 $ 9.36 $ 9.03 $ 9.34 $ 8.91 $ 8.99
- -------- -------- -------- -------- -------- --------
0.24 0.50 0.55 0.64 0.66 0.66
(0.19) 0.16 0.38 (0.29) 0.44 (0.08)
- -------- -------- -------- -------- -------- --------
0.05 0.66 0.93 0.35 1.10 0.58
- -------- -------- -------- -------- -------- --------
(0.25) (0.54) (0.60) (0.66) (0.67) (0.66)
-- -- -- -- -- --
- -------- -------- -------- -------- -------- --------
(0.25) (0.54) (0.60) (0.66) (0.67) (0.66)
- -------- -------- -------- -------- -------- --------
$ 9.28 $ 9.48 $ 9.36 $ 9.03 $ 9.34 $ 8.91
======== ======== ======== ======== ======== ========
0.59% 7.18% 10.51% 3.94% 12.78% 6.72%
$893,996 $834,726 $679,139 $487,376 $387,998 $286,979
0.55%(5) 0.55% 0.56% 0.56% 0.56% 0.60%
5.16%(5) 5.27% 5.80% 7.02% 7.27% 7.40%
8% 24% 33% 20% 35% 32%
0.55%(5) 0.55% 0.56% 0.56% 0.56% 0.61%
See Notes to Financial Statements.
115
Financial Highlights
For a Fund share outstanding throughout each period.
CLASS A CLASS B
-------------------------------------------------------------- --------------------
SIX MONTHS SIX MONTHS
ENDED YEARS ENDED OCTOBER 31 ENDED
04/30/05 ------------------------------------------------- 04/30/05
HIGH YIELD FUND (UNAUDITED) 2004 2003 2002 2001 2000 (UNAUDITED) 2004
------------ --------- ---------- --------- -------- --------- ----------- --------
NET ASSET VALUE, BEGINNING OF PERIOD... $ 8.28 $ 7.88 $ 6.63 $ 7.44 $ 8.50 $ 8.92 $ 8.32 $ 7.91
-------- ------- ------- ------- ------ ------ ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.............. 0.27 0.58 0.61(4) 0.71 0.84 0.90(4) 0.24 0.52
Net realized and unrealized gain/
(loss) on investments............. (0.22) 0.43 1.31 (0.72) (1.00) (0.43) (0.23) 0.44
-------- ------- ------- ------- ------ ------ ------- -------
Total from investment operations... 0.05 1.01 1.92 (0.01) (0.16) 0.47 0.01 0.96
-------- ------- ------- ------- ------ ------ ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment
income............................ (0.29) (0.61) (0.67) (0.80) (0.90) (0.89) (0.26) (0.55)
Distributions from net realized
capital gains..................... -- -- -- -- -- -- -- --
-------- ------- ------- ------- ------ ------ ------- -------
Total distributions................ (0.29) (0.61) (0.67) (0.80) (0.90) (0.89) (0.26) (0.55)
-------- ------- ------- ------- ------ ------ ------- -------
NET ASSET VALUE, END OF PERIOD......... $ 8.04 $ 8.28 $ 7.88 $ 6.63 $ 7.44 $ 8.50 $ 8.07 $ 8.32
======== ======= ======= ======= ====== ====== ======= =======
TOTAL RETURN(1)........................ 0.43% 13.23% 30.13% (0.48)% (1.97)% 5.28% 0.06% 12.50%
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period
(in 000s)......................... $ 99,454 $85,190 $48,618 $13,563 $9,035 $8,182 $75,072 $80,036
Ratio of operating expenses to
average net assets................ 0.91%(5) 0.93% 0.97% 1.03% 1.08% 1.08% 1.69%(5) 1.69%
Ratio of net investment income to
average net assets................ 6.65%(5) 7.11% 8.24% 9.72% 10.47% 10.08% 5.87%(5) 6.35%
Portfolio turnover rate............ 37% 82% 61% 60% 27% 40% 37% 82%
Ratio of operating expenses to
average net assets without fee
waivers, expenses reimbursed
and/or fees reduced by credits
allowed by the custodian(2)...... 0.91%(5) 0.93% 0.97% 1.03% 1.09% 1.08% 1.69%(5) 1.69%
CLASS A CLASS B
-------------------------------------------------------------- -------------------
SIX MONTHS SIX MONTHS
ENDED YEARS ENDED OCTOBER 31 ENDED
04/30/05 ------------------------------------------------- 04/30/05
TAX-EXEMPT BOND FUND (UNAUDITED) 2004 2003 2002 2001 2000 (UNAUDITED) 2004
----------- ---- ---- ---- ---- ---- ----------- ----
NET ASSET VALUE, BEGINNING OF PERIOD........ $ 7.95 $ 7.96 $ 7.95 $ 7.93 $ 7.55 $ 7.41 $ 7.95 $ 7.96
-------- -------- -------- -------- -------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................... 0.16 0.33 0.34 0.35 0.37 0.40 0.13 0.27
Net realized and unrealized gain on
investments............................ (0.04) 0.08 0.08 0.03 0.38 0.14 (0.04) 0.08
-------- -------- -------- -------- -------- -------- ------- -------
Total from investment operations........ 0.12 0.41 0.42 0.38 0.75 0.54 0.09 0.35
-------- -------- -------- -------- -------- -------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income.... (0.16) (0.33) (0.34) (0.35) (0.37) (0.40) (0.13) (0.27)
Distributions from net realized
capital gains.......................... (0.09) (0.09) (0.07) (0.01) -- -- (0.09) (0.09)
-------- -------- -------- -------- -------- -------- ------- -------
Total distributions..................... (0.25) (0.42) (0.41) (0.36) (0.37) (0.40) (0.22) (0.36)
-------- -------- -------- -------- -------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD.............. $ 7.82 $ 7.95 $ 7.96 $ 7.95 $ 7.93 $ 7.55 $ 7.82 $ 7.95
======== ======== ======== ======== ======== ======== ======= =======
TOTAL RETURN(1)............................. 1.57% 5.35% 5.31% 5.02% 10.16% 7.52% 1.20% 4.57%
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)..... $182,292 $184,711 $207,433 $213,673 $219,883 $207,309 $32,877 $35,433
Ratio of operating expenses to average
net assets............................ 0.88%(5) 0.90% 0.88% 0.90% 0.89% 0.88% 1.62%(5) 1.65%
Ratio of net investment income to
average net assets.................... 4.19%(5) 4.22% 4.20% 4.49% 4.75% 5.41% 3.45%(5) 3.47%
Portfolio turnover rate................. 15% 25% 47% 46% 44% 28% 15% 25%
Ratio of operating expenses to
average net assets without fee
waivers, expenses reimbursed and/or
fees reduced by credits allowed by
the custodian(2)...................... 0.88%(5) 0.90% 0.88% 0.90% 0.89% 0.90% 1.62%(5) 1.65%
- ----------
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges.
The total returns would have been lower if certain fees had not been
waived and/or expenses reimbursed by the investment advisor or if fees had
not been reduced by credits allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The Funds commenced selling Class C shares on March 1, 2002.
(4) Per share numbers have been calculated using the average shares method.
(5) Annualized.
See Notes to Financial Statements.
116
CLASS C
----------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- ----------------------------------------------- 04/30/05 -------------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002 (3)
- ---------- --------- --------- ---------- ----------- -------- ---------- -----------
$ 6.66 $ 7.47 $ 8.54 $ 8.97 $ 8.32 $ 7.91 $ 6.67 $ 7.55
- ------- ------- ------- ------- ------- ------- ------- -------
0.56(4) 0.66 0.78 0.84(4) 0.24 0.52 0.56(4) 0.46
1.31 (0.72) (1.01) (0.43) (0.23) 0.44 1.30 (0.86)
- ------- ------- ------- ------- ------- ------- ------- -------
1.87 (0.06) (0.23) 0.41 0.01 0.96 1.86 (0.40)
- ------- ------- ------- ------- ------- ------- ------- -------
(0.62) (0.75) (0.84) (0.84) (0.26) (0.55) (0.62) (0.48)
-- -- -- -- -- -- -- --
- ------- ------- ------- ------- ------- ------- ------- -------
(0.62) (0.75) (0.84) (0.84) (0.26) (0.55) (0.62) (0.48)
- ------- ------- ------- ------- ------- ------- ------- -------
$ 7.91 $ 6.66 $ 7.47 $ 8.54 $ 8.07 $ 8.32 $ 7.91 $ 6.67
======= ======= ======= ======= ======= ======= ======= =======
29.08% (1.17)% (2.72)% 4.46% 0.07% 12.51% 29.08% (5.66)%
$83,665 $44,004 $35,391 $32,881 $35,169 $33,318 $24,540 $ 2,556
1.73% 1.78% 1.77% 1.78% 1.66%(5) 1.68% 1.71% 1.78%(5)
7.48% 8.97% 9.78% 9.38% 5.90%(5) 6.36% 7.50% 8.97%(5)
61% 60% 27% 40% 37% 82% 61% 60%
1.73% 1.78% 1.78% 1.78% 1.66%(5) 1.68% 1.71% 1.78%(5)
CLASS I
- ---------------------------------------------------------------------------
SIX MONTH
ENDED YEARS ENDED OCTOBER 31
04/30/05 -----------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- ------------ --------- ----------- --------- ---------- --------
$ 8.27 $ 7.86 $ 6.62 $ 7.43 $ 8.48 $ 8.91
- -------- -------- -------- -------- -------- --------
0.28 0.60 0.63(4) 0.73 0.87 0.93(4)
(0.23) 0.44 1.30 (0.72) (0.99) (0.43)
- -------- -------- -------- -------- -------- --------
0.05 1.04 1.93 0.01 (0.12) 0.50
- -------- -------- -------- -------- -------- --------
(0.30) (0.63) (0.69) (0.82) (0.93) (0.93)
-- -- -- -- -- --
- -------- -------- -------- -------- -------- --------
(0.30) (0.63) (0.69) (0.82) (0.93) (0.93)
- -------- -------- -------- -------- -------- --------
$ 8.02 $ 8.27 $ 7.86 $ 6.62 $ 7.43 $ 8.48
======== ======== ======== ======== ======== ========
0.58% 13.75% 30.44% (0.15)% (1.49)% 5.54%
$557,510 $526,095 $424,781 $244,937 $201,385 $168,097
0.59%(5) 0.61% 0.64% 0.68% 0.68% 0.72%
6.97%(5) 7.43% 8.57% 10.07% 10.87% 10.44%
37% 82% 61% 60% 27% 40%
0.59%(5) 0.61% 0.64% 0.68% 0.69% 0.72%
CLASS C
----------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- ---------------------------------------------- 04/30/05 -------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002 (3)
- -------- --------- -------- --------- ----------- -------- -------- --------
$ 7.95 $ 7.93 $ 7.55 $ 7.41 $ 7.95 $ 7.96 $ 7.95 $ 7.83
- ------- -------- -------- -------- ------- ------- ------- --------
0.28 0.29 0.31 0.34 0.13 0.27 0.28 0.20
0.08 0.03 0.38 0.14 (0.04) 0.08 0.08 0.12
- ------- -------- -------- -------- ------- ------- ------- --------
0.36 0.32 0.69 0.48 0.09 0.35 0.36 0.32
- ------- -------- -------- -------- ------- ------- ------- --------
(0.28) (0.29) (0.31) (0.34) (0.13) (0.27) (0.28) (0.20)
(0.07) (0.01) -- -- (0.09) (0.09) (0.07) --
- ------- -------- -------- -------- ------- ------- ------- --------
(0.35) (0.30) (0.31) (0.34) (0.22) (0.36) (0.35) (0.20)
- ------- -------- -------- -------- ------- ------- ------- --------
$ 7.96 $ 7.95 $ 7.93 $ 7.55 $ 7.82 $ 7.95 $ 7.96 $ 7.95
======= ======== ======== ======== ======= ======= ======= ========
4.53% 4.25% 9.35% 6.73% 1.20% 4.58% 4.54% 4.06%
$45,061 $ 47,308 $ 43,978 $ 26,332 $ 2,556 $ 3,641 $ 4,332 $ 2,395
1.62% 1.64% 1.63% 1.61% 1.62%(5) 1.65% 1.61% 1.61%(5)
3.46% 3.75% 4.01% 4.68% 3.45%(5) 3.47% 3.47% 3.78%(5)
47% 46% 44% 28% 15% 25% 47% 46%
1.62% 1.64% 1.63% 1.63% 1.62%(5) 1.65% 1.61% 1.61%(5)
See Notes to Financial Statements.
117
Financial Highlights
For a Fund share outstanding throughout each period.
CLASS A CLASS B
---------------------------------------------------------------- ---------------------
SIX MONTHS SIX MONTHS
ENDED YEARS ENDED OCTOBER 31 ENDED
04/30/05 --------------------------------------------------- 04/30/05
CALIFORNIA MUNICIPAL FUND (UNAUDITED) 2004 2003 2002 2001 2000 (UNAUDITED) 2004
----------- --------- --------- ----------- --------- --------- ----------- --------
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 11.42 $ 11.22 $ 11.35 $ 11.34 $ 10.81 $ 10.43 $ 11.42 $ 11.22
-------- -------- -------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............... 0.24 0.49 0.47 0.50 0.53 0.55 0.20 0.40
Net realized and unrealized gain/
(loss) on investments.............. 0.01 0.20 (0.06) 0.00(4) 0.53 0.38 0.01 0.20
-------- -------- -------- -------- -------- -------- -------- --------
Total from investment operations.... 0.25 0.69 0.41 0.50 1.06 0.93 0.21 0.60
-------- -------- -------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment
income............................. (0.24) (0.49) (0.47) (0.49) (0.53) (0.55) (0.20) (0.40)
Distributions from net realized
capital gains...................... (0.03) -- (0.07) -- -- -- (0.03) --
-------- -------- -------- -------- -------- -------- -------- --------
Total distributions................. (0.27) (0.49) (0.54) (0.49) (0.53) (0.55) (0.23) (0.40)
-------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD.......... $ 11.40 $ 11.42 $ 11.22 $ 11.35 $ 11.34 $ 10.81 $ 11.40 $ 11.42
======== ======== ======== ======== ======== ======== ======== ========
TOTAL RETURN(1)......................... 2.21% 6.25% 3.69% 4.57% 9.99% 9.33% 1.83% 5.47%
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period
(in 000s).......................... $233,797 $232,239 $252,511 $286,095 $291,132 $248,941 $179,700 $195,930
Ratio of operating expenses to
average net assets................. 0.85%(5) 0.85% 0.85% 0.86% 0.85% 0.87% 1.59%(5) 1.59%
Ratio of net investment income to
average net assets................. 4.23%(5) 4.32% 4.14% 4.39% 4.74% 5.30% 3.49%(5) 3.58%
Portfolio turnover rate............. 10% 27% 34% 48% 52% 40% 10% 27%
Ratio of operating expenses to
average net assets without fee
waivers, expenses reimbursed
and/or fees reduced by credits
allowed by the custodian(2)........ 0.85%(5) 0.85% 0.85% 0.86% 0.86% 0.88% 1.59%(5) 1.59%
CLASS A CLASS B
--------------------------------------------------------- --------------------
SIX MONTHS SIX MONTHS
ENDED YEARS ENDED OCTOBER 31 ENDED
CALIFORNIA INSURED INTERMEDIATE 04/30/05 --------------------------------------------- 04/30/05
MUNICIPAL FUND (UNAUDITED) 2004 2003 2002 2001 2000 (UNAUDITED) 2004
----------- --------- -------- -------- -------- -------- ----------- --------
NET ASSET VALUE, BEGINNING OF PERIOD............. $ 11.14 $ 11.14 $ 11.08 $ 10.98 $ 10.58 $ 10.30 $ 11.14 $ 11.14
------- -------- ------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income......................... 0.17 0.33 0.35 0.39 0.44 0.44 0.13 0.25
Net realized and unrealized gain on
investments.................................. (0.10) 0.10 0.12 0.15 0.49 0.31 (0.10) 0.10
------- -------- ------- ------- ------- ------- ------- -------
Total from investment operations.............. 0.07 0.43 0.47 0.54 0.93 0.75 0.03 0.35
------- -------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income.......... (0.17) (0.33) (0.35) (0.39) (0.44) (0.44) (0.13) (0.25)
Distributions from net realized capital
gains........................................ -- (0.10) (0.06) (0.05) (0.09) (0.03) -- (0.10)
------- -------- ------- ------- ------- ------- ------- -------
Total distributions........................... (0.17) (0.43) (0.41) (0.44) (0.53) (0.47) (0.13) (0.35)
------- -------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD................... $ 11.04 $ 11.14 $ 11.14 $ 11.08 $ 10.98 $ 10.58 $ 11.04 $ 11.14
======= ======== ======= ======= ======= ======= ======= ========
TOTAL RETURN(1).................................. 0.66% 4.02% 4.29% 5.12% 9.00% 7.37% 0.28% 3.24%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL
DATA:
Net assets, end of period (in 000s)........... $66,836 $ 65,772 $75,231 $57,102 $39,996 $29,657 $66,132 $71,502
Ratio of operating expenses to average net
assets....................................... 0.86%(5) 0.85% 0.77% 0.70% 0.73% 0.91% 1.61%(5) 1.61%
Ratio of net investment income to average
net assets................................... 3.06%(5) 3.02% 3.15% 3.59% 4.09% 4.19% 2.31%(5) 2.26%
Portfolio turnover rate....................... 12% 37% 65% 28% 23% 45% 12% 37%
Ratio of operating expenses to average net
assets without fee waivers, expenses
reimbursed and/or fees reduced by credits
allowed by the custodian(2).................. 0.86%(5) 0.86% 0.86% 0.89% 0.92% 0.93% 1.61%(5) 1.62%
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges.
The total returns would have been lower if certain fees had not been
waived and/or expenses reimbursed by the investment advisor or if fees had
not been reduced by credits allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The Funds commenced selling Class C shares on March 1, 2002.
(4) Amount represents less than $0.01 per share.
(5) Annualized.
See Notes to Financial Statements.
118
CLASS C
-------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- ------------------------------------------------ 04/30/05 -----------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002 (3)
- --------- ----------- --------- --------- ----------- -------- -------- -----------
$ 11.35 $ 11.34 $ 10.81 $ 10.43 $ 11.42 $ 11.22 $ 11.35 $ 11.20
- -------- -------- -------- -------- ------- ------- ------- -------
0.38 0.42 0.44 0.48 0.20 0.40 0.38 0.28
(0.06) 0.00(4) 0.53 0.38 0.01 0.20 (0.06) 0.14
- -------- -------- -------- -------- ------- ------- ------- -------
0.32 0.42 0.97 0.86 0.21 0.60 0.32 0.42
- -------- -------- -------- -------- ------- ------- ------- -------
(0.38) (0.41) (0.44) (0.48) (0.20) (0.40) (0.38) (0.27)
(0.07) -- -- -- (0.03) -- (0.07) --
- -------- -------- -------- -------- ------- ------- ------- -------
(0.45) (0.41) (0.44) (0.48) (0.23) (0.40) (0.45) (0.27)
- -------- -------- -------- -------- ------- ------- ------- -------
$ 11.22 $ 11.35 $ 11.34 $ 10.81 $ 11.40 $ 11.42 $ 11.22 $ 11.35
======== ======== ======== ======== ======= ======= ======= =======
2.92% 3.79% 9.19% 8.53% 1.83% 5.46% 2.92% 3.77%
$255,445 $295,662 $237,594 $160,086 $ 4,700 $ 5,275 $ 8,193 $ 6,665
1.59% 1.60% 1.58% 1.60% 1.59%(5) 1.60% 1.59% 1.58%(5)
3.40% 3.65% 4.01% 4.57% 3.49%(5) 3.57% 3.40% 3.67%(5)
34% 48% 52% 40% 10% 27% 34% 48%
1.59% 1.60% 1.59% 1.61% 1.59%(5) 1.60% 1.59% 1.58%(5)
CLASS C
------------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- ------------------------------------------- 04/30/05 ----------------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002 (3)
- --------- -------- -------- -------- ----------- -------- -------- ---------
$ 11.08 $ 10.98 $ 10.58 $ 10.30 $ 11.14 $ 11.14 $ 11.08 $10.90
- -------- ------- ------- ------- ------- ------- ------- ------
0.27 0.31 0.36 0.36 0.12 0.25 0.27 0.21
0.12 0.15 0.49 0.31 (0.10) 0.10 0.12 0.18
- -------- ------- ------- ------- ------- ------- ------- ------
0.39 0.46 0.85 0.67 0.02 0.35 0.39 0.39
- -------- ------- ------- ------- ------- ------- ------- ------
(0.27) (0.31) (0.36) (0.36) (0.12) (0.25) (0.27) (0.21)
(0.06) (0.05) (0.09) (0.03) -- (0.10) (0.06) --
- -------- ------- ------- ------- ------- ------- ------- ------
(0.33) (0.36) (0.45) (0.39) (0.12) (0.35) (0.33) (0.21)
- -------- ------- ------- ------- ------- ------- ------- ------
$ 11.14 $ 11.08 $ 10.98 $ 10.58 $ 11.04 $ 11.14 $ 11.14 $11.08
======== ======= ======= ======= ======= ======= ======= ======
3.51% 4.32% 8.19% 6.57% 0.27% 3.24% 3.50% 3.58%
$ 93,448 $89,240 $51,525 $35,685 $ 8,413 $ 8,763 $10,317 $7,953
1.53% 1.46% 1.48% 1.66% 1.64%(5) 1.61% 1.53% 1.45%(5)
2.39% 2.83% 3.34% 3.44% 2.28%(5) 2.26% 2.39% 2.84%(5)
65% 28% 23% 45% 12% 37% 65% 28%
1.62% 1.65% 1.67% 1.68% 1.64%(5) 1.62% 1.62% 1.64%(5)
See Notes to Financial Statements.
119
Financial Highlights
For a Fund share outstanding throughout each period.
CLASS A
------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 --------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- --------- --------- -------- --------
MONEY MARKET FUND
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- -------- --------- --------- -------- --------
Net investment income................................... 0.009 0.007 0.008 0.014 0.043 0.056
Dividends from net investment income.................... (0.009) (0.007) (0.008) (0.014) (0.043) (0.056)
----------- -------- --------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ======== ========= ========= ======== ========
TOTAL RETURN(1)............................................. 0.89% 0.74% 0.78% 1.42% 4.40% 5.79%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)..................... $ 533,175 $530,052 $ 707,954 $ 689,002 $647,951 $458,368
Ratio of operating expenses to average net assets....... 0.60%(4) 0.57% 0.59% 0.59% 0.64% 0.65%
Ratio of net investment income to average net assets.... 1.78%(4) 0.72% 0.78% 1.41% 4.21% 5.62%
Ratio of operating expenses to average net assets
without fee waivers, expenses reimbursed and/or
fees reduced by credits allowed by the custodian(2)... 0.60%(4) 0.57% 0.59% 0.59% 0.64% 0.65%
CLASS B
-----------------------
SIX MONTHS
ENDED
04/30/05 --------
(UNAUDITED) 2004
---------- --------
MONEY MARKET FUND
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 1.00 $ 1.00
---------- --------
Net investment income................................... 0.003 0.001
Dividends from net investment income.................... (0.003) (0.001)
---------- --------
NET ASSET VALUE, END OF PERIOD.............................. $ 1.00 $ 1.00
========== ========
TOTAL RETURN(1)............................................. 0.34% 0.06%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s)..................... $ 39,396 $ 52,764
Ratio of operating expenses to average net assets....... 1.70%(4) 1.24%
Ratio of net investment income to average net assets.... 0.68%(4) 0.06%
Ratio of operating expenses to average net assets
without fee waivers, expenses reimbursed and/or
fees reduced by credits allowed by the custodian(2)... 1.70%(4) 1.68%
CLASS A
-------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 -----------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- -------
TAX-EXEMPT MONEY MARKET FUND
NET ASSET VALUE, BEGINNING OF PERIOD............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------
Net investment income........................................ 0.005 0.004 0.005 0.010 0.025 0.033
Dividends from net investment income......................... (0.005) (0.004) (0.005) (0.010) (0.025) (0.033)
-------- -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== =======
TOTAL RETURN(1) 0.55% 0.39% 0.52% 1.00% 2.57% 3.39%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s).......................... $ 22,384 $ 27,122 $ 30,162 $ 33,300 $ 31,527 $28,596
Ratio of operating expenses to average net assets............ 0.75%(4) 0.78% 0.67% 0.67% 0.74% 0.72%
Ratio of net investment income to average net assets......... 1.09%(4) 0.39% 0.53% 0.99% 2.52% 3.33%
Ratio of operating expenses to average net assets without
fee waivers, expenses reimbursed and/or fees reduced by
credits allowed by the custodian(2)........................ 0.81%(4) 0.78% 0.79% 0.78% 0.74% 0.88%
CLASS A
-------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 -----------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- -------
CALIFORNIA MONEY FUND
NET ASSET VALUE, BEGINNING OF PERIOD............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------
Net investment income........................................ 0.006 0.006 0.005 0.009 0.023 0.028
Dividends from net investment income......................... (0.006) (0.006) (0.005) (0.009) (0.023) (0.028)
-------- -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== =======
TOTAL RETURN(1).................................................. 0.58% 0.57% 0.50% 0.89% 2.32% 2.79%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s).......................... $ 20,868 $ 20,066 $ 24,730 $ 27,673 $ 42,558 $35,407
Ratio of operating expenses to average net assets............ 0.69%(4) 0.58% 0.63% 0.63% 0.62% 0.69%
Ratio of net investment income to average net assets......... 1.17%(4) 0.56% 0.50% 0.89% 2.27% 2.76%
Ratio of operating expenses to average net assets without
fee waivers, expenses reimbursed and/or fees reduced by
credits allowed by the custodian(2)........................ 0.85%(4) 0.82% 0.80% 0.70% 0.70% 0.69%
- ----------
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges.
The total returns would have been lower if certain fees had not been waived
and/or expenses reimbursed by the investment advisor or if fees had not
been reduced by credits allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The Money Market Fund commenced selling Class C shares on March 1, 2002.
(4) Annualized.
See Notes to Financial Statements.
120
CLASS C
- -------------------------------------- ------------------------------------------
SIX MONTHS
YEARS ENDED OCTOBER 31 ENDED YEARS ENDED OCTOBER 31
- -------------------------------------- 04/30/05 ----------------------------
2003 2002 2001 2000 (UNAUDITED) 2004 2003 2002 (3)
- -------- -------- -------- -------- ----------- -------- -------- ---------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------- -------- -------- -------- --------- -------- -------- --------
0.001 0.003 0.033 0.046 0.003 0.001 0.001 0.002
(0.001) (0.003) (0.033) (0.046) (0.003) (0.001) (0.001) (0.002)
- -------- -------- -------- -------- --------- -------- -------- --------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========= ======== ======== ========
0.05% 0.34% 3.32% 4.68% 0.34% 0.06% 0.06% 0.17%
$ 79,314 $104,530 $ 74,603 $ 23,469 $ 7,023 $ 8,480 $ 5,046 $ 3,676
1.33% 1.67% 1.69% 1.71% 1.70%(4) 1.30% 1.29% 1.64%(4)
0.04% 0.33% 3.16% 4.56% 0.68%(4) 0.07% 0.08% 0.36%(4)
1.71% 1.67% 1.69% 1.71% 1.70%(4) 1.65% 1.67% 1.64%(4)
CLASS I
-------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31
04/30/05 -----------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
- ----------- ------- -------- -------- -------- --------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- ------- -------- -------- -------- --------
0.009 0.008 0.008 0.015 0.044 0.057
(0.009) (0.008) (0.008) (0.015) (0.044) (0.057)
--------- ------- -------- -------- -------- --------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======= ======== ======== ======== ========
0.92% 0.79% 0.84% 1.47% 4.46% 5.90%
$ 89,433 $91,719 $ 24,880 $169,295 $ 17,755 $ 15,885
0.54%(4) 0.52% 0.54% 0.54% 0.58% 0.55%
1.84%(4) 0.83% 0.83% 1.46% 4.27% 5.72%
0.54%(4) 0.52% 0.54% 0.54% 0.58% 0.55%
See Notes to Financial Statements.
121
Notes to Financial Statements (unaudited)
WM GROUP OF FUNDS
1. ORGANIZATION AND BUSINESS
WM Trust I ("Trust I") and WM Trust II ("Trust II") (collectively, the "Trusts")
were organized as Massachusetts business trusts on September 19, 1997 and
February 22, 1989, respectively. The Trusts are each registered under the
Investment Company Act of 1940, as amended ("1940 Act"), as open-end management
investment companies. Trust I and Trust II consist of 19 funds (each a "Fund,"
collectively, the "Funds"). The Trust I Money Market Funds are diversified and
the Trust II Money Market Fund is non-diversified.
TRUST I TRUST II
EQUITY FUNDS EQUITY FUNDS
REIT Fund Growth Fund
Equity Income Fund Small Cap Growth Fund
Growth & Income Fund International Growth Fund
West Coast Equity Fund
Mid Cap Stock Fund
Small Cap Value Fund
FIXED-INCOME FUNDS FIXED-INCOME FUND
U.S. Government Securities Fund Short Term Income Fund
Income Fund
High Yield Fund
MUNICIPAL FUNDS
MUNICIPAL FUND California Municipal Fund
Tax-Exempt Bond Fund California Insured Intermediate Municipal Fund
MONEY MARKET FUNDS MONEY MARKET FUND
Money Market Fund California Money Fund
Tax-Exempt Money Market Fund
WM Advisors, Inc. (the "Advisor" or "WM Advisors") serves as investment advisor
to the Trusts. The Advisor is a wholly owned subsidiary of Washington Mutual,
Inc. ("Washington Mutual"), a publicly owned financial services company.
The Trusts are authorized to issue an unlimited number of shares of beneficial
interest, each without par value. Each of the Fixed-Income Funds and the Equity
Funds offer four classes of shares: Class A shares, Class B shares, Class C
shares and Class I shares. Each of the Municipal Funds currently offer Class A
shares, Class B shares and Class C shares. Class A shares of the Funds are
generally subject to an initial sales charge at the time of purchase. Certain
Class A shares purchased without an initial sales charge may be subject to a
contingent deferred sales charge ("CDSC") if redeemed within eighteen months
from the date of purchase. Class B shares are not subject to an initial sales
charge although they are generally subject to a CDSC if redeemed within five
years from the date of purchase. Class C shares are not subject to an initial
sales charge although they are subject to a CDSC if redeemed within one year
from the date of purchase. In addition, redemptions from International Growth
Fund, including exchange redemptions, within 90 days of purchase are subject to
a redemption fee equal to 2.00% of the redemption proceeds, which will be
retained by the Fund. Class I shares are sold exclusively to the various
investment portfolios of the WM Strategic Asset Management Portfolios, LLC (the
"Portfolios"), an affiliated open-end management investment company, and
affiliates of Washington Mutual and are not available for direct purchase by
investors. Class I shares are not subject to an initial sales charge, CDSC or
redemption fee.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies, in conformity
with accounting principles generally accepted in the United States of America
("generally accepted accounting principles"), which are consistently followed by
the Portfolios and Funds in the preparation of their financial statements.
122
Notes to Financial Statements (unaudited) (continued)
WM GROUP OF FUNDS
PORTFOLIO VALUATION:
Securities that are primarily traded on a U.S. exchange (excluding securities
traded through the Nasdaq National Market System, which are valued at the Nasdaq
official closing price) are valued at the last sale price on that exchange or,
if there were no sales during the day (and no official closing price on such
day), at the mean of the current day's bid and asked prices. Securities traded
only on over-the-counter markets (other than the Nasdaq National Market System
and the U.S. Government Securities System) are valued at the mean of the current
day's bid and asked prices.
The value of a foreign security is determined in its functional currency as of
the close of trading on the foreign exchange on which it is traded or at the
close of the New York Stock Exchange, if that is earlier, or if there has been
movement in the U.S. market and/or other economic indicators that exceed a
specified threshold, the foreign security is fair valued. The value is then
converted into its U.S. dollar equivalent using prevailing exchange rates on the
day the value of the foreign security is determined.
Options are generally valued at the last sale price or, in the absence of a last
sale price, at the mean of the current day's bid and asked prices. The value of
a futures contract equals the unrealized gain or loss on the contract, which is
determined by marking the contract to the current settlement price for a like
contract acquired on the day on which the futures contract is being valued.
Debt securities of U.S. issuers (other than short-term investments), including
municipal securities, are valued by one or more independent pricing services
(each a "Pricing Service") retained by the Trusts. When, in the judgment of a
Pricing Service, market quotations for these securities are readily available,
they are valued at the mean between the quoted bid and asked prices. Short-term
debt securities that mature in 60 days or less are valued at amortized cost,
which approximates market value.
Securities for which market quotations are not readily available are valued at
fair value as determined by, or under the direction of, the Board of Trustees
which may rely on the assistance of one or more pricing services.
The investments of the Money Funds are valued on the basis of amortized cost in
accordance with Rule 2a-7 of the 1940 Act, which approximates market value and
does not take into account unrealized capital gains or losses. Amortized cost
valuation involves initially valuing an instrument at its cost and thereafter
assuming a constant amortization to maturity of any discount or premium, as long
as the amortized cost fairly reflects the market-based net asset value per
share. Certain other assets may be valued by the Advisor under the supervision
of the Board of Trustees.
REPURCHASE AGREEMENTS:
Each Fund may enter into repurchase agreement transactions. A repurchase
agreement is a purchase of an underlying debt obligation subject to an agreement
by the seller to repurchase the obligation at an agreed upon price and time. It
is each Fund's policy that its custodian take possession of the underlying
collateral securities. The fair value of the collateral is at all times at least
equal to the total amount of the repurchase obligation. In the event of
counterparty default, the Fund would seek to use the collateral to offset losses
incurred. There is potential loss to the Fund in the event the Fund is delayed
or prevented from exercising its right to dispose of the collateral securities,
including the risk of a possible decline in the value of the underlying
securities during the period while the Fund seeks to assert its rights. WM
Advisors, acting under the supervision of the Board of Trustees, reviews the
value of the collateral and the creditworthiness of those banks and
broker-dealers with whom each Fund enters into repurchase agreements.
FUTURES CONTRACTS:
Certain Funds may enter into futures transactions. The underlying value of a
futures contract is incorporated within the unrealized
appreciation/(depreciation) shown in the Portfolio of Investments under the
caption "Futures Contracts."
Upon entering into a futures contract, the Fund is required to deposit with the
broker an amount of cash or cash equivalents equal to a certain percentage of
the contract amount (known as an initial margin deposit). Subsequent payments
(known as variation margins) are made or received by the Fund each day,
depending on the daily fluctuation of the value of the contract. The daily
changes in contract value are recorded as unrealized gains or losses and the
Fund recognizes a realized gain or loss when the contract is closed. Should
market conditions change unexpectedly, the Funds may not achieve the anticipated
benefits of the futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
PURCHASED OPTION CONTRACTS:
Certain Funds may enter into put and call option contracts. These Funds may use
option contracts to manage their exposure to the stock and bond markets and to
fluctuations in interest rates and currency values. Upon entering into a put or
call option, the premium paid is recorded as an investment. The daily changes in
contract value are recorded as unrealized gains or losses. When a purchased
option expires, the Fund will realize a loss in the amount of the cost of the
option. When the Fund enters into a
123
Notes to Financial Statements (unaudited) (continued)
WM GROUP OF FUNDS
closing sale transaction, the Fund will realize a gain or loss depending on
whether the sale proceeds from the closing sale transaction are greater or less
than the cost of the option plus related transaction costs. When the Fund
exercises a put option, the Fund will realize a gain or loss from the sale of
the underlying security and the proceeds from such sale will be decreased by the
premium originally paid. When the Fund exercises a call option, the cost of the
security, which the Fund purchases upon exercise, will be increased by the
premium originally paid. The risk associated with purchasing options is limited
to the premium originally paid.
FOREIGN CURRENCY:
The books and records of the Funds are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars on a daily basis using prevailing exchange rates. Purchases and
sales of investment securities, income and expenses are translated on the
respective dates of such transactions.
Unrealized gains and losses, not relating to securities, which result from
changes in foreign currency exchange rates have been included in unrealized
appreciation/(depreciation) of investments. Unrealized gains and losses of
securities, which result from changes in foreign currency exchange rates as well
as changes in market prices of securities, have been included in unrealized
appreciation/(depreciation) of investments. Net realized foreign currency gains
and losses, which result from changes in exchange rates between trade date and
settlement date on investment transactions as well as the difference between the
amounts of interest and dividends recorded on the books of the Funds and the
amount actually received, have been included in realized gains/(losses) on
investment transactions. Foreign currency gains and losses, which result from
fluctuations in exchange rates between the initial purchase trade date and
subsequent sale trade date, have been included in realized gains/(losses) on
investment transactions.
FORWARD FOREIGN CURRENCY CONTRACTS:
Certain Funds may enter into forward foreign currency contracts. Forward foreign
currency contracts are agreements to exchange one currency for another at a
future date and at a specified price. These Funds may use forward foreign
currency contracts to facilitate transactions in foreign securities and to
manage the Funds' foreign currency exposure. These contracts are valued daily,
and a Fund's net equity therein, representing unrealized gain or loss on the
contracts as measured by the difference between the forward foreign exchange
rates at the dates of entry into the contracts and the forward rates at the
reporting date, is included in the "Statements of Assets and Liabilities".
Realized and unrealized gains and losses are included in the "Statements of
Operations". Due to the risks, the Funds could incur losses up to the entire
contract amount, which may exceed the net unrealized value shown in the
"Statements of Assets and Liabilities".
ILLIQUID INVESTMENTS:
Each Fund may invest a portion of its net assets in securities that are not
readily marketable, including: (1) repurchase agreements with maturities greater
than seven calendar days; (2) time deposits maturing in more than seven calendar
days; (3) certain futures contracts and options; (4) certain variable rate
demand notes having a demand period of more than seven calendar days; (5)
securities, the disposition of which are restricted under Federal securities
laws, excluding certain Rule 144A securities, as defined in the following
paragraph; and (6) certain over-the-counter options.
Illiquid securities generally cannot be sold or disposed of in the ordinary
course of business (within seven calendar days) at approximately the value at
which the Funds have valued the investments. This may have an adverse effect on
the Fund's ability to dispose of particular illiquid securities at fair market
value and may limit the Fund's ability to obtain accurate market quotations for
purposes of valuing the securities and calculating the net asset value of shares
of the Fund. The Funds may also purchase securities that are not registered
under the Securities Act of 1933, as amended (the "Act"), but that can be sold
to qualified institutional buyers in accordance with Rule 144A under the Act
("Rule 144A Securities"). Rule 144A Securities generally must be sold only to
other qualified institutional buyers. If a particular investment in Rule 144A
Securities is not determined to be liquid under the guidelines established by
the Board of Trustees, that investment will be subject to a Fund's limitation on
investment in illiquid securities as indicated above.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are recorded on a trade date basis. Realized gains and
losses from securities sold are recorded on the identified cost basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income is not accrued
until settlement date. Each Fund instructs the custodian to segregate assets of
the Fund with a current value at least equal to the amount of its when-issued
purchase commitments.
124
Notes to Financial Statements (unaudited) (continued)
WM GROUP OF FUNDS
Interest income on debt securities is accrued daily. Premiums and discounts are
amortized using the interest method. Paydown gains and losses on mortgage-backed
and asset-backed securities are presented as an adjustment to interest income.
Dividend income is recorded on the ex-dividend date, except certain dividends
from foreign securities are recorded as soon as the information is availabled to
the Funds if informed after the ex-dividend date. The Funds estimate components
of distributions from Real Estate Investment Trusts ("REITs"). Distributions
received in excess of income are recorded as a reduction of the cost of the
related investments. Each Fund's investment income and realized and unrealized
gains and losses are allocated among the classes of that Fund based upon the
relative average net assets of each class.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income of the Fixed-Income Funds, Municipal Funds
and Money Market Funds are declared daily and paid monthly. Dividends from net
investment income of the REIT and Equity Income Funds are declared and paid
quarterly. Dividends from any net investment income of the Growth & Income, West
Coast Equity, Mid Cap Stock, Growth, Small Cap Value, Small Cap Growth and
International Growth Funds are declared and paid annually. Distributions of any
net capital gains earned by a Fund are distributed no less frequently than
annually at the discretion of the Board of Trustees. Additional distributions of
net investment income and capital gains for each Fund may be made at the
discretion of the Board of Trustees in accordance with federal income tax
regulations.
Distributions from income and capital gains are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Funds, dividends
payable, redesignated distributions and differing characterization of
distributions made by each Fund.
FEDERAL INCOME TAXES:
It is each Fund's policy to qualify as a regulated investment company by
complying with the requirements of the Internal Revenue Code of 1986, as amended
(the "Code"), applicable to regulated investment companies and by distributing
substantially all of its earnings to its shareholders. Therefore, no federal
income or excise tax provision is required.
EXPENSES:
General expenses of the Trusts are allocated to all the Funds based upon the
relative average net assets of each Fund except printing and postage expenses,
which are allocated to all the Funds based upon the relative number of
shareholder accounts of each Fund. Operating expenses directly attributable to a
class of shares are charged to the operations of that class of shares. Expenses
of each Fund not directly attributable to the operations of any class of shares
are prorated among the classes to which the expenses relate based on the
relative average net assets of each class of shares.
USE OF ESTIMATES:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
3. INVESTMENT ADVISORY AND OTHER TRANSACTIONS
WM Advisors serves as investment advisor to the Trusts. The Advisor is entitled
to a monthly fee at an annual rate based upon a percentage of the average daily
net assets of each Fund at the following rates:
FROM $0 FROM $125 FROM $200 FROM $250 FROM $500 FROM $1 FROM $2
TO $125 TO $200 TO $250 TO $500 MILLION TO TO $2 TO $3 OVER
NAME OF FUND MILLION MILLION MILLION MILLION $1 BILLION BILLION BILLION $3 BILLION
- ------------------------------- ------- --------- --------- --------- ---------- ------- ------- -----------
REIT Fund........................ 0.800% 0.800% 0.800% 0.800% 0.750% 0.750% 0.700% 0.650%
Equity Income Fund............... 0.625% 0.625% 0.625% 0.500% 0.500% 0.500% 0.500% 0.500%
Growth & Income Fund............. 0.625% 0.625% 0.625% 0.500% 0.500% 0.500% 0.500% 0.500%
West Coast Equity Fund........... 0.625% 0.625% 0.625% 0.625% 0.500% 0.375% 0.375% 0.375%
Mid Cap Stock Fund............... 0.750% 0.750% 0.750% 0.750% 0.750% 0.700% 0.650% 0.600%
Growth Fund...................... 0.800% 0.800% 0.800% 0.800% 0.750% 0.750% 0.700% 0.650%
Small Cap Value Fund............. 0.850% 0.850% 0.850% 0.850% 0.750% 0.750% 0.750% 0.700%
Small Cap Growth Fund............ 0.850% 0.850% 0.850% 0.850% 0.750% 0.750% 0.750% 0.700%
International Growth Fund........ 1.000% 0.800% 0.800% 0.800% 0.800% 0.750% 0.750% 0.700%
Short Term Income Fund........... 0.500% 0.500% 0.450% 0.450% 0.400% 0.400% 0.400% 0.400%
U.S. Government Securities Fund.. 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.450% 0.450%
Income Fund...................... 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.450% 0.450%
125
Notes to Financial Statements (unaudited) (continued)
WM GROUP OF FUNDS
FROM $0 FROM $125 FROM $200 FROM $250 FROM $500 FROM $1 FROM $2
TO $125 TO $200 TO $250 TO $500 MILLION TO TO $2 TO $3 OVER
NAME OF FUND MILLION MILLION MILLION MILLION $1 BILLION BILLION BILLION $3 BILLION
- --------------------------------- ------- --------- --------- --------- ---------- ------- -------- -----------
High Yield Fund.................. 0.625% 0.625% 0.625% 0.500% 0.500% 0.500% 0.500% 0.500%
Tax-Exempt Bond Fund............. 0.500% 0.500% 0.500% 0.400% 0.400% 0.400% 0.400% 0.400%
California Municipal Fund........ 0.500% 0.500% 0.500% 0.500% 0.500% 0.450% 0.450% 0.450%
California Insured Intermediate
Municipal Fund............... 0.500% 0.500% 0.500% 0.500% 0.500% 0.450% 0.450% 0.450%
Money Market Fund 0.450% 0.450% 0.450% 0.450% 0.450% 0.400% 0.400% 0.400%
Tax-Exempt Money Market Fund..... 0.450% 0.450% 0.450% 0.450% 0.450% 0.400% 0.400% 0.400%
California Money Fund............ 0.450% 0.450% 0.450% 0.450% 0.400% 0.400% 0.400% 0.400%
The Advisor has voluntarily waived $7,016 and $16,078 of its advisory fees for
the Tax-Exempt Money Market and California Money Funds for the six months ended
April 30, 2005, respectively. In May 2005, the Advisor reimbursed the Small Cap
Growth Fund $445,321, or $0.02 per Fund share, for trading losses incurred
during the transition to new Sub-Advisors in April 2005.
WM Shareholder Services, Inc. (the "Transfer Agent"), a wholly owned subsidiary
of Washington Mutual, serves as the transfer agent of the Funds. Fees are paid
to the Transfer Agent for services related to the issuance and transfer of
shares, maintaining shareholder lists, and issuing and mailing distributions and
reports. For such services, the Transfer Agent receives a fee per open and
closed account, in addition to reimbursement for certain out-of-pocket expenses.
The Transfer Agent is entitled to a monthly fee based upon an annual rate of
$20.40, $21.15, $21.15 and $24.19 per open account for Class A, Class B and
Class C shareholder accounts for the Equity Funds, Fixed-Income Funds, Municipal
Funds and Money Market Funds, respectively. Class I shares are not subject to
shareholder servicing fees. Effective June 1, 2005, the authorized annual
transfer agent fee will change to $20.00 per open account for all Class A, Class
B and Class C shareholder accounts. For the six months ended April 30, 2005, the
Transfer Agent has voluntarily waived $29,817, $21,040 and $8,103 of its
transfer agent fees for Class A, Class B and Class C shares of the Short Term
Income Fund, respectively.
Custodian fees for certain Funds have been reduced by credits allowed by the
Funds' custodian for uninvested cash balances. The Funds could have invested
this cash in income producing securities. Fees reduced by credits allowed by the
custodian for the six months ended April 30, 2005 are shown separately in the
"Statements of Operations".
4. TRUSTEES' FEES
No officer or employee of Washington Mutual or its subsidiaries receives any
compensation from the Trusts for serving as an officer or Trustee of the Trusts.
The Trusts, together with other mutual funds advised by WM Advisors, pay each
Trustee who is not an officer or employee of Washington Mutual or its
subsidiaries, a per annum retainer plus attendance fees for each meeting at
which they are present. The Lead Trustee, Committee Chairs and Committee Members
receive additional remuneration for these services to the Trusts. Trustees are
also reimbursed for travel and out-of-pocket expenses. Each Trustee serves in
the same capacity for all 42 funds within the WM Group of Funds.
5. DISTRIBUTION PLANS
WM Funds Distributor, Inc. (the "Distributor"), a registered broker-dealer and a
wholly owned subsidiary of Washington Mutual, serves as distributor for Class A,
Class B and Class C shares. For the six months ended April 30, 2005, the
Distributor has received $948,375 representing commissions (front-end sales
charges) on Class A shares and $1,415,037 representing CDSCs from Class A, Class
B and Class C shares.
Each of the Funds has adopted three distribution plans, pursuant to Rule 12b-1
under the 1940 Act, applicable to Class A, Class B and Class C shares of the
Fund (each, a "Rule 12b-1 Plan"), respectively. There are no 12b-1 Plans
applicable to Class I shares of the Funds. Under the applicable Rule 12b-1
Plans, the Distributor may receive a service fee at an annual rate of 0.25% of
the average daily net assets of each class. In addition, the Distributor is paid
a fee as compensation in connection with the offering and sale of Class B and
Class C shares at an annual rate of 0.75% of the average daily net assets of
each class. These fees may be used to cover the expenses of the Distributor
primarily intended to result in the sale of such shares, including payments to
the Distributor's representatives or others for selling shares. The service fee
is paid by the Fund to the Distributor, which in turn, pays
126
Notes to Financial Statements (unaudited) (continued)
WM GROUP OF FUNDS
service fees to broker/dealers that provide services, such as accepting
telephone inquiries and transaction requests and processing correspondence, new
account applications and subsequent purchases for the shareholders. Under their
terms, each Rule 12b-1 plan shall remain in effect from year to year, provided
such continuance is approved annually by vote of the Board of Trustees,
including a majority of those Trustees who are not "interested persons" of the
Trusts, as defined in the 1940 Act, and who have no direct or indirect financial
interest in the operation of such distribution plans, or any agreements related
to such plans, respectively.
6. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, excluding
U.S. Government and short-term investments, for the six months ended April 30,
2005, are as follows:
PURCHASES SALES
NAME OF FUND (000s) (000s)
- ------------ --------- --------
REIT Fund ............................................ $ 52,101 $ 21,869
Equity Income Fund ................................... 469,794 130,705
Growth & Income Fund ................................. 408,731 112,364
West Coast Equity Fund ............................... 181,295 104,425
Mid Cap Stock Fund ................................... 162,852 102,738
Growth Fund .......................................... 962,302 824,829
Small Cap Value Fund ................................. 92,367 68,606
Small Cap Growth Fund ................................ 702,645 752,606
International Growth Fund ............................ 159,331 86,526
Short Term Income Fund ............................... 34,854 5,154
U.S. Government Securities Fund ...................... 82,294 42,731
Income Fund .......................................... 114,714 68,560
High Yield Fund ...................................... 346,325 272,622
Tax-Exempt Bond Fund ................................. 32,230 37,722
California Municipal Fund ............................ 43,007 62,495
California Insured Intermediate Municipal Fund ....... 16,496 21,469
The aggregate cost of purchases and proceeds from sales of U.S. Government
securities, excluding short-term investments, for the six months ended April 30,
2005, are as follows:
PURCHASES SALES
NAME OF FUND (000s) (000s)
- ------------ --------- --------
Equity Income Fund ............................. $ -- $ 333
Short Term Income Fund ......................... -- 8,661
U.S. Government Securities Fund ................ 321,220 169,524
Income Fund .................................... 50,015 20,409
7. LENDING OF SECURITIES
Certain Funds may lend securities to brokers, dealers and other financial
organizations to earn additional income. The Funds also continue to receive
interest or dividends on the securities loaned. Each security loan is
collateralized with collateral assets in an amount equal to or greater than the
current market value of the loaned securities. There is a risk of delay in
receiving collateral, that the collateral could lose value or become valueless,
or in recovering the securities loaned or even a loss of rights in collateral
should the borrower fail financially.
At April 30, 2005, each of the Funds with outstanding loans of securities to
certain brokers, dealers or other financial institutions has segregated cash
and/or securities at least equal to the market value of securities loaned with
the Funds' custodian. The Funds currently invest the segregated cash in Mellon
GSL DBT II which is a common collective trust that invests in high grade short
term investments.
127
Notes to Financial Statements (unaudited) (continued)
WM GROUP OF FUNDS
8. PORTFOLIO OWNERSHIP AND OTHER FACTORS
At April 30, 2005, the WM Strategic Asset Management Portfolios hold investments
in a number of the Funds. The figures presented below represent the percentage
of shares outstanding of each Fund owned by the Portfolios:
PORTFOLIOS
-----------------------------------------------------------------------------
FLEXIBLE CONSERVATIVE CONSERVATIVE STRATEGIC
INCOME BALANCED BALANCED GROWTH GROWTH
NAME OF FUND PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO TOTAL
- ------------ --------- ------------ --------- ------------ --------- -----
REIT Fund ......................... 2.7% 3.0% 33.3% 33.9% 20.2% 93.1%
Equity Income Fund ................ 1.8% 1.9% 20.9% 19.6% 11.9% 56.1%
Growth & Income Fund .............. 3.0% 2.2% 23.8% 25.2% 17.5% 71.7%
West Coast Equity Fund ............ 0.7% 1.1% 13.1% 14.4% 10.8% 40.1%
Mid Cap Stock Fund ................ 3.6% 2.6% 28.3% 29.7% 23.7% 87.9%
Growth Fund ....................... 3.1% 2.6% 29.4% 31.1% 18.9% 85.1%
Small Cap Value Fund .............. 3.3% 2.7% 32.2% 35.5% 22.9% 96.6%
Small Cap Growth Fund ............. 3.0% 1.7% 22.0% 24.2% 17.1% 68.0%
International Growth Fund ......... -- 3.2% 32.1% 33.9% 23.4% 92.6%
Short Term Income Fund ............ 42.4% 11.6% 14.1% -- -- 68.1%
U.S. Government Securities Fund.... 18.5% 9.0% 40.8% 15.8% -- 84.1%
Income Fund ....................... 19.7% 8.6% 36.8% 10.0% -- 75.1%
High Yield Fund ................... 8.6% 4.0% 22.1% 15.3% 11.2% 61.2%
From time to time, one or more of the Funds used for investment by a Portfolio
may experience relatively large investments or redemptions due to reallocations
or rebalancings by the Portfolios. These transactions will affect the Funds,
since the Funds that experience redemptions as a result of the reallocations or
rebalancings may have to sell portfolio securities and the Funds that receive
additional cash will have to invest such cash. While it is impossible to predict
the overall impact of these transactions over time, there could be adverse
effects on portfolio management to the extent that the Funds may be required to
sell securities or invest cash at times when they would not otherwise do so.
These transactions could also have tax consequences if sales of securities
resulted in gains and could also increase transaction costs. The Advisor is
committed to minimizing such impact on the Funds to the extent it is consistent
with pursuing the investment objectives of the Portfolios. The Advisor may
nevertheless face conflicts in fulfilling its responsibilities. The Advisor
will, at all times, monitor the impact on the Funds of transactions by the
Portfolios.
9. UNREALIZED APPRECIATION/(DEPRECIATION)
At April 30, 2005, the aggregate gross unrealized appreciation/(depreciation) on
a tax basis are as follows:
(IN THOUSANDS)
-------------------------------------------------------------------------------------------------
EQUITY GROWTH & WEST COAST MID CAP SMALL CAP SMALL CAP
REIT INCOME INCOME EQUITY STOCK GROWTH VALUE GROWTH
FUND FUND FUND FUND FUND FUND FUND FUND
-------- --------- --------- ---------- --------- --------- --------- ---------
Gross tax unrealized
appreciation ................ $ 98,070 $ 353,844 $ 466,020 $ 390,311 $ 135,133 $ 122,724 $ 46,559 $ 7,821
Gross tax unrealized
depreciation ................ (1,176) (31,816) (66,192) (94,832) (11,838) (57,977) (18,847) (22,418)
-------- --------- --------- --------- --------- --------- -------- --------
Net tax unrealized appreciation/
(depreciation) .............. $ 96,894 $ 322,028 $ 399,828 $ 295,479 $ 123,295 $ 64,747 $ 27,712 $(14,597)
======== ========= ========= ========= ========= ========= ======== ========
CALIFORNIA
U.S. INSURED
INTERNATIONAL SHORT TERM GOVERNMENT HIGH TAX-EXEMPT CALIFORNIA INTERMEDIATE
GROWTH INCOME SECURITIES INCOME YIELD BOND MUNICIPAL MUNICIPAL
FUND FUND FUND FUND FUND FUND FUND FUND
------------- ---------- ---------- -------- -------- ---------- ---------- ------------
Gross tax unrealized
appreciation ...... $ 103,114 $ 2,322 $ 11,172 $ 51,374 $ 52,506 $ 17,713 $ 23,258 $ 4,073
Gross tax unrealized
depreciation ...... (14,623) (2,424) (11,408) (29,660) (25,785) (864) (94) (196)
--------- ------- -------- -------- -------- -------- -------- -------
Net tax unrealized
appreciation/
(depreciation) .... $ 88,491 $ (102) $ (236) $ 21,714 $ 26,721 $ 16,849 $ 23,164 $ 3,877
========= ======= ======== ======== ======== ======== ======== =======
128
Notes to Financial Statements (unaudited) (continued)
WM GROUP OF FUNDS
10. INDUSTRY AND GEOGRAPHIC CONCENTRATION AND OTHER RISK FACTORS
While no individual fund is intended as a complete investment program, this is
especially true for funds that concentrate their investments such as those
investing in particular industries or regions.
The REIT Fund concentrates its investments in real estate investment trust
("REIT") securities or debt securities of issuers that are principally engaged
in the U.S. real estate or related industries. The REIT Fund could be adversely
impacted by economic trends within this industry.
The West Coast Equity Fund concentrates its investments in companies located or
doing business in Alaska, California, Idaho, Montana, Oregon and Washington. The
West Coast Equity Fund could be adversely impacted by economic trends within
this region.
The High Yield Fund invests in lower rated debt securities, which may be more
susceptible to adverse economic conditions than investment grade holdings. These
securities are often subordinated to the prior claims of other senior lenders,
and uncertainties exist as to an issuer's ability to meet principal and interest
payments.
The California Municipal, California Insured Intermediate Municipal and
California Money Funds are more susceptible to factors adversely affecting
issuers of California municipal securities than is a municipal bond fund that is
not concentrated in these issuers. Uncertain economic conditions or governmental
developments may affect the ability of California municipal securities issuers
to meet their financial obligations.
Certain Funds may invest a portion of their assets in foreign securities of
developing or emerging markets countries; enter into forward foreign currency
transactions; lend their portfolio securities; enter into a stock index,
interest rate and currency futures contracts, and options on such contracts;
enter into interest rate swaps or purchase or sell interest rate caps or floors;
enter into other types of options transactions; make short sales; purchase zero
coupon and payment-in-kind bonds; enter into repurchase or reverse repurchase
agreements; purchase and sell "when-issued" securities and engage in
"delayed-delivery" transactions; and enter into various other investment
practices, each with inherent risks. The risks involved in investing in foreign
securities include those resulting from future adverse political and economic
developments and the possible imposition of currency exchange restrictions or
other foreign laws or restrictions. The risks involved in investing in a high
concentration of a single sector include those resulting from future adverse
political and economic developments or regulatory occurrences and the potential
for adverse effects to the financial conditions of the industries within the
sector due to market fluctuations.
11. OTHER FUND INFORMATION
SCHEDULES OF INVESTMENTS:
The Trusts file their complete schedules of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters of
each fiscal year on Form N-Q. The Trusts' Forms N-Q are available, without
charge and upon request, by calling 1-800-222-5852. The Trusts' Forms N-Q are
also available at http://www.sec.gov and also may be reviewed and copied at the
SEC's Public Reference Room ("PRR") in Washington, DC. Information regarding the
operation of the PRR may be obtained by calling 1-800-SEC-0330.
PROXY VOTING INFORMATION:
The policies and procedures that the Trusts use to determine how to vote proxies
relating to portfolio securities held by the Fund are included in the
Trusts' Statement of Additional Information which is available, without charge
and upon request, by calling 1-800-222-5852. Information regarding how the Fund
voted proxies relating to portfolio securities during the most recent
twelve-month period ended June 30 is available at http://www.wmgroupoffunds.com.
This information is also available at http://www.sec.gov.
129
Notes to Financial Statements (unaudited) (continued)
WM GROUP OF FUNDS
12. APPROVAL OF SUB-ADVISORY AGREEMENTS
APPROVAL OF SUB-ADVISORY AGREEMENTS WITH EACH OF SALOMON BROTHERS MANAGEMENT,
OBERWEIS ASSET MANAGEMENT, INC., AND DELAWARE ASSET MANAGEMENT COMPANY
Certain Sub-Advisory Agreements were considered at the November 2004 and
February 2005 board meetings, as detailed below:
In determining whether to approve Sub-Advisory Agreements ("Proposed
Agreements") with Salomon Brothers Management ("Salomon"), Oberweis Asset
Management, Inc. ("Oberweis") and Delaware Asset Management Company ("Delaware")
(collectively "Proposed Sub-Advisors"), the Board of Trustees of WM Trust II, on
behalf of its Growth and Small Cap Growth Funds, met with the relevant
investment advisory personnel of the Advisor and the proposed portfolio managers
from each Proposed Sub-Advisor. The Trustees also considered information
provided by the Advisor and each Proposed Sub-Advisor relating to the education,
experience, and number of investment professionals and other personnel providing
services under the Proposed Agreements (including information regarding expected
changes in personnel) for the purpose of evaluating each Proposed Sub-Advisor's
fitness to serve as investment advisors to the Funds. The Trustees also took
into account the time and attention that would be devoted by senior management
of each Proposed Sub-Advisor to the Funds. The Trustees evaluated the level of
skill required to manage the Funds and concluded that the resources that each
Proposed Sub-Advisor would devote to the Funds were appropriate to fulfill
effectively their respective duties under the applicable Proposed Agreement. The
Trustees also considered the business reputation and financial resources of each
Proposed Sub-Advisor and concluded that it would be able to meet any reasonably
foreseeable obligations under the Proposed Agreement.
The Trustees considered information concerning the investment philosophy and
investment process proposed to be applied by each Proposed Sub-Advisor in
managing the Funds. In this context, the Trustees considered the in-house
research capabilities of each Proposed Sub-Advisor as well as other sources
available to each Proposed Sub-Advisor's personnel, including research services
available to each Proposed Sub-Advisor that would result from securities
transactions affected for the Funds' and other investment advisory clients of
each Proposed Sub-Advisor. The Trustees concluded that the investment
philosophy, process, and research capabilities of each Proposed Sub-Advisor were
well suited to the Funds, given its investment objective and policies.
The Trustees considered the scope of the services to be provided by each
Proposed Sub-Advisor to the Funds under the applicable Proposed Agreement
relative to services provided by third parties to other mutual funds and
services provided by each Proposed Sub-Advisor currently to mutual funds and
other clients. The Trustees considered the services to be provided by the
Advisor with respect to the Funds, including oversight by the Advisor of the
advisory services to be provided by each Proposed Sub-Advisor, and other
non-advisory services provided by the Advisor. The Trustees noted that the
standard of care applicable to each Proposed Sub-Advisor under the Proposed
Agreements was comparable to that found in most mutual fund investment advisory
agreements. The Trustees concluded that the scope of the services to be provided
to the Funds by each Proposed Sub-Advisor was consistent with the Funds'
operational requirements, including, in addition to its investment objective,
compliance with the Funds' investment restrictions, tax and reporting
requirements and related shareholder services. The Trustees evaluated the record
of each Proposed Sub-Advisor with respect to regulatory compliance.
The Trustees also evaluated the procedures of each Proposed Sub-Advisor designed
to fulfill its fiduciary duties to its advisory clients with respect to possible
conflicts of interest, including the code of ethics of each Proposed Sub-Advisor
(regulating the personal trading of its officers and employees), the procedures
by which each Proposed Sub-Advisor allocates trades among its various investment
advisory clients, the integrity of the systems in place to ensure compliance
with the foregoing, and the record of each Proposed Sub-Advisor in these
matters. The Trustees also received and considered information concerning
procedures of each Proposed Sub-Advisor with respect to the execution of
portfolio transactions.
The Trustees considered information relating to the investment performance of
accounts managed by each Proposed Sub-Advisor in a style similar to that it
would use with respect to the Funds and relative to funds managed similarly by
other advisors. The Trustees reviewed performance over various periods,
including one-, three- and five-year periods, and considered information
presented by the Advisor with respect to its expectations regarding the relative
performance of each Proposed Sub-Advisor under different market conditions and
during different phases of a market cycle, the volatility of such returns, as
well as factors identified by each Proposed Sub-Advisor as contributing to
performance. The Trustees concluded that the scope and quality of the services
expected to be provided by each Proposed Sub-Advisor, as well as the investment
performance of comparable investment advisory clients of each Proposed
Sub-Advisor, were sufficient, in light of market conditions, performance
attribution, the resources dedicated by the Proposed Sub-Advisor and its
integrity, its personnel and systems and its financial resources, to merit
approval of the applicable Proposed Agreement.
130
Notes to Financial Statements (unaudited) (continued)
WM GROUP OF FUNDS
In reaching that conclusion, the Trustees also gave substantial consideration to
the fees payable under the Proposed Agreements. The Trustees not only took into
account the actual dollar amount of fees to be paid by the Funds directly to
each Proposed Sub-Advisor, but also took into account so-called "fallout
benefits" to each Proposed Sub-Advisor, such as any incremental increase to its
reputation derived from serving as investment advisor to the Funds. The Trustees
also considered fees paid to each Proposed Sub-Advisor, and services provided by
each Proposed Sub-Advisor, under other advisory contracts, concluding that,
considering the relative complexity of the investment management
responsibilities under such contracts, the fees to be paid to each Proposed
Sub-Advisor and the services to be provided by each Proposed Sub-Advisor under
the applicable Proposed Agreement bore a reasonable relationship to such fees
and services.
The Trustees also considered the effective fees under the Proposed Agreements,
as a percentage of assets at different asset levels, and possible economies of
scale to each Proposed Sub-Advisor and concluded that, to the extent such
economies of scale might be realized, the fee levels reflect an appropriate
sharing of these economies of scale. The Trustees also considered the fact that,
under the Proposed Agreements, the fees payable to the Advisor by the Funds are
reduced by the total fees paid by the Funds under the Proposed Agreements and
the possible impact of each Proposed Sub-Advisor's fees on the profitability of
the Advisor. The Trustees did not evaluate the expected profitability of
Salomon, Oberweis or Delaware with respect to the Funds, both because of the
lack of actual operating history and because the Trustees concluded that the
negotiations between the Advisor and each Proposed Sub-Advisor regarding the
Proposed Agreements had been entirely at arm's-length.
In evaluating the Funds' sub-advisory fees, the Trustees also took into account
the complexity of investment management for the Funds relative to other types of
funds. The Trustees concluded that generally greater research intensity and
trading acumen is required for equity funds such as the Funds, as compared to
funds investing in primarily debt obligations.
In considering to recommend approval of more than one sub-advisor, the Trustees
also took into account the fact that common holdings across one or more
sub-advisors will create the possibility of "wash sales", i.e., the sale of a
security within 30 days of its purchase or vice versa. For example, if Oberweis
were to sell a security from the portion of the Funds managed by it and Delaware
Management were to purchase the same security within 30 days, that would
constitute a "wash sale", even though different sub-advisors were responsible
for the purchase and sale decisions. "Wash sales" are disadvantageous from a tax
perspective because gains are recognized on a current basis, but losses are
deferred.
The Trustees also took into account the fact that the Funds will experience
higher portfolio turnover in connection with the initial allocation of
Funds' assets to each Proposed Sub-Advisor, with the attendant brokerage,
custodian, and other transactional costs. Future reallocations among the
sub-advisors may also result in higher portfolio turnover and related costs.
Based on the foregoing, the Trustees concluded that the fees to be paid under
each Proposed Agreement were fair and reasonable, given the scope and quality of
the services proposed to be rendered by the Proposed Sub-Advisor. The Trustees
unanimously approved, and recommend that shareholders of the Funds approve, each
Proposed Agreement.
13. SPECIAL MEETINGS OF SHAREHOLDERS
A special meeting of shareholders of the Growth Fund of the WM Trust II was
convened on February 3, 2005, at which shareholders approved the following:
A sub-advisory agreement for the Fund among the Fund, WM Advisors, Inc. and
Salomon.
AFFIRMATIVE AGAINST ABSTAINED TOTAL
----------- ------- --------- -----------
Voted shares ............................... 101,638,863 441,607 706,989 102,787,459
% of Outstanding Shares .................... 96.723% 0.420% 0.673% 97.816%
% of Shares Voted .......................... 98.883% 0.429% 0.688% 100.000%
A special meeting of shareholders of the Small Cap Growth Fund of the WM Trust
II was convened on March 24, 2005, at which shareholders approved the following:
131
Notes to Financial Statements (unaudited) (continued)
WM GROUP OF FUNDS
A sub-advisory agreement for the Fund among the Fund, WM Advisors, Inc. and
Oberweis.
AFFIRMATIVE AGAINST ABSTAINED TOTAL
----------- --------- --------- ----------
Voted shares ............. 17,291,124 1,625,278 744,623 19,661,025
% of Outstanding Shares... 64.384% 6.052% 2.773% 73.209%
% of Shares Voted ........ 87.946% 8.267% 3.787% 100.000%
A sub-advisory agreement for the Fund among the Fund, WM Advisors, Inc. and
Delaware.
AFFIRMATIVE AGAINST ABSTAINED TOTAL
----------- --------- --------- ----------
Voted shares ............. 17,272,859 1,671,757 716,409 19,661,025
% of Outstanding Shares... 64.316% 6.225% 2.668% 73.209%
% of Shares Voted ........ 87.853% 8.503% 3.644% 100.000%
132
(artwork)
[WM LOGO]
Group of Funds
A mutual fund's share price and investment return will vary with market
conditions, and the principal value of an investment when you sell your shares
may be more or less than the original cost.
This semiannual report is published for the general information of the
shareholders of the WM Group of Funds. This material is not authorized for
distribution unless preceded or accompanied by a current prospectus that
includes more information regarding the risk factors, expenses, policies, and
objectives of the funds. Investors should read the prospectus carefully before
investing. To obtain an additional prospectus, please contact your Investment
Representative or call 800-222-5852.
The WM Group of mutual funds is advised by WM Advisors, Inc., distributed by WM
Funds Distributor, Inc., and sold through WM Financial Services, Inc. (all
affiliates of Washington Mutual, Inc.) and independent broker/dealers.
Distributed by:
WM Funds Distributor, Inc.
Member NASD
[WM LOGO]
Group of Funds
P.O. Box 8024
Boston, MA 02266-8024
ITEM 2. CODE OF ETHICS
Not applicable for this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable for this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable for this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable for this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
Not Applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANIES AND AFFILIATED PURCHASERS
Not Applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 11. CONTROLS AND PROCEDURES:
(a) The registrant's principal executive officer and principal financial officer
have concluded, based on their evaluation of the effectiveness of the design and
operation of the registrant's disclosure controls and procedures as of a date
within 90 days of the filing date of this report on Form N-CSR, that the design
and operation of such procedures are effective to provide reasonable assurance
that information required to be disclosed by the registrant in the reports that
it files or submits on Form N-CSR is recorded, processed, summarized, and
reported within the time periods specified in the SEC's rules and forms.
(b) There have been no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment Company
Act of 1940, as amended) that occurred during the second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS
(a) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 of the Investment
Company Act of 1940 attached hereto as Exhibit 99.CERT.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
attached hereto as Exhibit 99.906 CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
WM Trust II
By: /s/ William G. Papesh
William G. Papesh
President and Chief Executive Officer
July 7, 2005
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: /s/ Jeffrey L. Lunzer
Jeffrey L. Lunzer
Treasurer and Chief Financial Officer
July 7, 2005
By: /s/ William G. Papesh
William G. Papesh
President and Chief Executive Officer
July 7, 2005