UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company File Number: 811-03626
CITIZENS FUNDS
(Exact Name of Registrant as Specified in Charter)
One Harbour Place, Suite 400, Portsmouth, New Hampshire 03801
(Address of Principal Executive Offices)
Sophia Collier
Citizens Advisers, Inc.
One Harbour Place
Portsmouth, NH 03801
(Name and Address of Agent for Service)
Registrant's Telephone Number, including Area Code: (603) 436-5152
Date of fiscal year end: June 30
Date of reporting period: December 31, 2007
ITEM 1. REPORT TO SHAREHOLDERS.
[CITIZENS FUNDS LOGO]
SEMI-ANNUAL REPORT
DECEMBER 31 ,2007
[GRAPHIC]
SHARE THE SEEDS OF RESPONSIBLE INVESTING
TABLE OF CONTENTS
SEMI - ANNUAL REPORT
Portfolio composition 2
Holdings 4
Statements of assets and liabilities 22
Statements of operations 24
Statements of changes in net assets 26
Financial highlights 30
Financial notes 36
Supplemental information 46
PORTFOLIO COMPOSITION (UNAUDITED)
PORTFOLIO COMPOSITION
<Table>
<Caption>
PERCENTAGE OF
CORE GROWTH FUND INVESTMENTS
SECURITY ALLOCATION AT VALUE
- ------------------------------------------------------------
Information Technology....................... 19.7%
Financials................................... 18.6%
Energy....................................... 12.5%
Healthcare................................... 12.1%
Industrials.................................. 10.3%
Consumer Staples............................. 8.7%
Consumer Discretionary....................... 8.4%
Materials.................................... 3.5%
Utilities.................................... 3.2%
Telecommunication Services................... 2.8%
Cash Equivalents............................. 0.2%
- ------------------------------------------------------------
</Table>
<Table>
<Caption>
PERCENTAGE OF
EMERGING GROWTH FUND INVESTMENTS
SECURITY ALLOCATION AT VALUE
- ------------------------------------------------------------
Information Technology....................... 18.7%
Consumer Discretionary....................... 18.1%
Healthcare................................... 14.8%
Industrials.................................. 13.7%
Energy....................................... 12.6%
Financials................................... 8.0%
Materials.................................... 4.4%
Cash Equivalents............................. 3.0%
Consumer Staples............................. 2.6%
Telecommunication Services................... 2.3%
Utilities.................................... 1.8%
- ------------------------------------------------------------
</Table>
<Table>
<Caption>
SMALL CAP PERCENTAGE OF
CORE GROWTH FUND INVESTMENTS
SECURITY ALLOCATION AT VALUE
- ------------------------------------------------------------
Information Technology....................... 23.4%
Consumer Discretionary....................... 18.1%
Healthcare................................... 17.5%
Industrials.................................. 11.5%
Energy....................................... 8.9%
Financials................................... 6.3%
Materials.................................... 5.1%
Consumer Staples............................. 5.0%
Cash Equivalents............................. 4.2%
- ------------------------------------------------------------
</Table>
<Table>
<Caption>
PERCENTAGE OF
VALUE FUND INVESTMENTS
SECURITY ALLOCATION AT VALUE
- ------------------------------------------------------------
Financials................................... 17.8%
Information Technology....................... 16.7%
Energy....................................... 13.0%
Healthcare................................... 12.2%
Industrials.................................. 10.9%
Consumer Staples............................. 10.3%
Consumer Discretionary....................... 8.7%
Utilities.................................... 3.7%
Telecommunication Services................... 3.2%
Materials.................................... 2.9%
Cash Equivalents............................. 0.6%
- ------------------------------------------------------------
</Table>
<Table>
<Caption>
PERCENTAGE OF
GLOBAL EQUITY FUND INVESTMENTS
SECURITY ALLOCATION AT VALUE
- ------------------------------------------------------------
Financials................................... 20.1%
Healthcare................................... 12.3%
Industrials.................................. 11.3%
Information Technology....................... 10.9%
Energy....................................... 10.3%
Materials.................................... 9.5%
Consumer Staples............................. 6.8%
Telecommunication Services................... 5.9%
Consumer Discretionary....................... 5.8%
Cash Equivalents............................. 4.7%
Utilities.................................... 2.4%
- ------------------------------------------------------------
</Table>
SEE FINANCIAL NOTES
2
DECEMBER 31, 2007
<Table>
<Caption>
PERCENTAGE OF
BALANCED FUND INVESTMENTS
SECURITY ALLOCATION AT VALUE
- ------------------------------------------------------------
Equity
Financials................................. 13.3%
Information Technology..................... 12.3%
Energy..................................... 9.5%
Healthcare................................. 8.8%
Industrials................................ 7.6%
Consumer Staples........................... 6.8%
Consumer Discretionary..................... 5.0%
Utilities.................................. 2.5%
Materials.................................. 2.3%
Telecommunication Services................. 2.2%
- ------------------------------------------------------------
Fixed Income
U.S. Government Agency Obligations......... 12.4%
U.S. Government Obligations................ 7.8%
Corporate Bonds............................ 5.5%
Foreign Government Bonds................... 0.2%
Collateralized Mortgage Obligations........ 0.1%
- ------------------------------------------------------------
Cash Equivalents............................. 3.7%
- ------------------------------------------------------------
</Table>
<Table>
<Caption>
PERCENTAGE OF
INCOME FUND INVESTMENTS
SECURITY ALLOCATION AT VALUE
- ------------------------------------------------------------
U.S. Government Agency Obligations........... 41.6%
U.S. Government Obligations.................. 23.9%
Collateralized Mortgage Obligations.......... 21.3%
Corporate Bonds.............................. 13.0%
Cash Equivalents............................. 0.2%
- ------------------------------------------------------------
</Table>
<Table>
<Caption>
PERCENTAGE OF
MONEY MARKET FUND INVESTMENTS AT
SECURITY ALLOCATION VALUE
- -------------------------------------------------------------
Commercial Paper............................. 70.9%
U.S. Government Agency Obligations........... 18.7%
Municipal Notes.............................. 7.5%
U.S. Treasury Bills.......................... 2.7%
Certificates of Deposit...................... 0.2%
- -------------------------------------------------------------
</Table>
All portfolio compositions subject to change.
SEE FINANCIAL NOTES
3
CITIZENS FUNDS HOLDINGS (UNAUDITED)
<Table>
<Caption>
- -------------------------------------------------------------------------
CORE GROWTH FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
COMMON STOCKS - 100.0%
AIR FREIGHT - 1.4%
FedEx Corp. 49,500 4,414
APPAREL MANUFACTURERS - 1.3%
NIKE, Inc., Class B 60,600 3,893
BANKS - 6.1%
Banco Santander Central Hispano SA ADR 198,000 4,265
ICICI Bank Ltd. ADR 83,400 5,130
UBS AG ADR 99,900 4,595
Wells Fargo & Co. 164,000 4,951
-------
18,941
BIOTECHNOLOGY - 1.5%
Roche Holding AG ADR 54,300 4,691
CHEMICALS - 2.6%
Amgen, Inc. (a) 65,900 3,060
Praxair, Inc. 58,240 5,167
-------
8,227
COMPUTERS - 11.5%
Akamai Technologies, Inc. (a) 100,150 3,465
Apple, Inc. (a) 31,500 6,239
Autodesk, Inc. (a) 80,000 3,981
Corning, Inc. 193,700 4,647
Google, Inc., Class A (a) 7,800 5,394
Hewlett-Packard Co. 114,000 5,755
Oracle Corp. (a) 283,100 6,391
-------
35,872
ELECTRICAL EQUIPMENT - 1.7%
Emerson Electric Co. 95,800 5,428
ELECTRONICS - 7.4%
Cisco Systems, Inc. (a) 165,000 4,467
MEMC Electronic Materials, Inc. (a) 63,000 5,575
NVIDIA Corp. (a) 138,000 4,695
Texas Instruments, Inc. 88,000 2,939
Thermo Fisher Scientific, Inc. (a) 94,300 5,439
-------
23,115
ENERGY & UTILITIES - 15.8%
Allegheny Energy, Inc. 85,800 5,458
Baker Hughes, Inc. 60,000 4,866
ConocoPhillips 68,875 6,082
Devon Energy Corp. 71,000 6,312
Silvan Power Co. (a) (b) 24,000 0
The AES Corp. (a) 211,900 4,533
The Williams Cos., Inc. 214,000 7,656
Transocean, Inc. (a) 70,494 10,090
Vulcan Power Co., Class A (a) (b) 40,000 0
XTO Energy, Inc. 78,125 4,013
-------
49,010
ENTERTAINMENT - 1.2%
The Walt Disney Co. 118,000 3,809
FINANCIAL - DIVERSIFIED - 3.5%
JPMorgan Chase & Co. 103,700 4,527
Lehman Brothers Holdings, Inc. 45,100 2,951
Merrill Lynch & Co., Inc. 62,300 3,344
-------
10,822
FINANCIAL SERVICES - 3.1%
Franklin Resources, Inc. 39,700 4,543
Prudential Financial, Inc. 55,200 5,136
-------
9,679
FOODS - 3.5%
Hansen Natural Corp. (a) 49,000 2,170
PepsiCo, Inc. 113,500 8,615
-------
10,785
HEALTHCARE - 6.6%
Becton, Dickinson & Co. 55,800 4,664
C.R. Bard, Inc. 31,712 3,006
Hologic, Inc. (a) 49,218 3,378
Intuitive Surgical, Inc. (a) 13,269 4,306
WellPoint, Inc. (a) 57,400 5,036
-------
20,390
INSURANCE - 3.4%
AFLAC, Inc. 79,800 4,998
American International Group, Inc. 98,200 5,725
-------
10,723
</Table>
SEE FINANCIAL NOTES
4
DECEMBER 31, 2007 ($ X 1,000)
<Table>
<Caption>
- -------------------------------------------------------------------------
CORE GROWTH FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
INVESTMENT BANKING & BROKERAGE - 2.0%
Affiliated Managers Group, Inc. (a) 20,400 2,396
The Goldman Sachs Group, Inc. 17,400 3,742
-------
6,138
MANUFACTURING - 11.0%
Bucyrus International, Inc., Class A 31,000 3,081
Crown Holdings, Inc. (a) 118,235 3,033
Danaher Corp. 67,000 5,879
General Cable Corp. (a) 62,000 4,543
Oshkosh Truck Corp. 53,480 2,527
Precision Castparts Corp. 44,600 6,186
Procter & Gamble Co. 122,800 9,016
-------
34,265
MULTIMEDIA - 1.3%
News Corp., Class A 27,000 553
News Corp., Class B 166,000 3,528
-------
4,081
PHARMACEUTICALS - 1.4%
Schering-Plough Corp. 164,700 4,388
REAL ESTATE - 0.6%
CB Richard Ellis Group, Inc., Class A (a) 82,200 1,771
RESTAURANTS - 1.2%
Starbucks Corp. (a) 188,200 3,852
RETAIL - 5.0%
Best Buy & Co., Inc. 66,800 3,517
CVS/Caremark Corp. 182,575 7,258
Netflix, Inc. (a) 78,000 2,076
Target Corp. 55,100 2,755
-------
15,606
SERVICES - 3.4%
Accenture Ltd., Class A 115,100 4,148
Cognizant Technology Solutions Corp., Class A
(a) 110,000 3,733
Nalco Holding Co. 109,970 2,659
-------
10,540
TELECOMMUNICATIONS - 3.5%
AT&T, Inc. 162,625 6,758
Comcast Corp., Class A (a) 115,000 2,100
NII Holdings, Inc. (a) 44,200 2,136
-------
10,994
-------
TOTAL COMMON STOCKS 311,434
Cost: $276,160
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 0.2%
Fifth Third Bank, Inc.,
3.25%, 01/02/08
(Date of Agreement 12/31/07, proceeds at maturity $752,
collateralized by Federal National Mortgage Assoc.
security, 5.00%, 07/01/33, market value $774)
Cost: $752 752 752
-------
TOTAL INVESTMENTS - 100.2% 312,186
Cost: $276,912
</Table>
Percentages indicated are based on net assets of $311,296.
(a) Non-income producing security.
(b) On December 31, 2007, the fund owned the following restricted securities
constituting 0.00% of net assets which may not be publicly sold without
registration under the Securities Act of 1933. These securities are valued at
their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Trust's Board of Trustees.
Additional information on the securities is as follows:
Vulcan Power Co., Class A
Acquisition Date: March 3, 1995
Cost: $300
Unit Cost: $7.50
Value: $0
Silvan Power Co.
Acquisition Date: July 27, 2004
Cost: $0
Unit Cost: $0
Value: $0
ADR - American Depositary Receipt
- --------------------------------------------------------------------------------
SEE FINANCIAL NOTES
5
CITIZENS FUNDS HOLDINGS (UNAUDITED)
<Table>
<Caption>
- -------------------------------------------------------------------------
EMERGING GROWTH FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
COMMON STOCKS - 97.5%
APPAREL MANUFACTURERS - 5.0%
Crocs, Inc. (a) 70,000 2,577
Gildan Activewear, Inc. (a) 90,000 3,704
Guess?, Inc. 65,000 2,463
-------
8,744
BIOTECHNOLOGY - 4.2%
Alexion Pharmaceuticals, Inc. (a) 27,000 2,026
Gilead Sciences, Inc. (a) 80,400 3,699
Techne Corp. (a) 25,000 1,651
-------
7,376
COMPUTERS - 5.6%
Akamai Technologies, Inc. (a) 95,000 3,287
Corning, Inc. 75,360 1,808
Network Appliance, Inc. (a) 55,000 1,373
Seagate Technology 70,000 1,785
VeriFone Holdings, Inc. (a) 60,000 1,395
-------
9,648
CONSUMER PRODUCTS - 3.6%
Bare Escentuals, Inc. (a) 70,000 1,698
Energizer Holdings, Inc. (a) 25,000 2,803
Tempur-Pedic International, Inc. 70,000 1,818
-------
6,319
ELECTRICAL EQUIPMENT - 1.5%
Thomas & Betts Corp. (a) 20,000 981
WESCO International, Inc. (a) 40,000 1,585
-------
2,566
ELECTRONICS - 10.0%
Broadcom Corp., Class A (a) 70,000 1,830
Cypress Semiconductor Corp. (a) 70,000 2,522
Lam Research Corp. (a) 51,000 2,205
MEMC Electronic Materials, Inc. (a) 60,000 5,309
NVIDIA Corp. (a) 55,500 1,888
PerkinElmer, Inc. 75,000 1,952
Tessera Technologies, Inc. (a) 40,000 1,664
-------
17,370
ENERGY & UTILITIES - 15.8%
Airgas, Inc. 40,000 2,084
Allegheny Energy, Inc. 50,000 3,181
Core Laboratories N.V. (a) 25,000 3,118
Dresser-Rand Group, Inc. (a) 60,000 2,343
EOG Resources, Inc. 37,000 3,302
FMC Technologies, Inc. (a) 45,000 2,552
Noble Energy, Inc. 25,000 1,988
Smith International, Inc. 30,000 2,216
The Williams Cos., Inc. 75,000 2,684
Transocean, Inc. (a) 26,374 3,774
-------
27,242
FINANCIAL SERVICES - 5.8%
CME Group, Inc. 5,406 3,709
IntercontinentalExchange, Inc. (a) 12,000 2,310
T. Rowe Price Group, Inc. 66,110 4,024
-------
10,043
HEALTHCARE - 9.5%
C.R. Bard, Inc. 23,000 2,180
Express Scripts, Inc. (a) 30,000 2,190
Intuitive Surgical, Inc. (a) 14,650 4,755
Invitrogen Corp. (a) 23,000 2,148
Laboratory Corp. of America Holdings (a) 40,000 3,021
St. Jude Medical, Inc. (a) 55,000 2,235
-------
16,529
INTERNET SERVICE PROVIDERS - 1.1%
Verisign, Inc. (a) 50,000 1,881
INVESTMENT BANKING & BROKERAGE - 1.2%
Affiliated Managers Group, Inc. (a) 18,000 2,114
MANUFACTURING - 12.2%
BE Aerospace, Inc. (a) 48,000 2,539
Commercial Metals Co. 65,000 1,908
Cummins, Inc. 40,000 5,094
Flowserve Corp. 25,000 2,405
Oshkosh Truck Corp. 58,568 2,768
Precision Castparts Corp. 18,000 2,497
RTI International Metals, Inc. (a) 29,000 1,999
Terex Corp. (a) 30,000 1,967
-------
21,177
</Table>
SEE FINANCIAL NOTES
6
DECEMBER 31, 2007 ($ X 1,000)
<Table>
<Caption>
- -------------------------------------------------------------------------
EMERGING GROWTH FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
REAL ESTATE - 1.1%
CB Richard Ellis Group, Inc., Class A (a) 85,000 1,832
RESTAURANTS - 1.6%
Burger King Holdings, Inc. 95,000 2,708
RETAIL - 8.4%
Aeropostale, Inc. (a) 67,000 1,776
Coach, Inc. (a) 58,000 1,774
Gamestop Corp., Class A (a) 40,000 2,484
Nordstrom, Inc. 48,012 1,763
Priceline.com, Inc. (a) 35,000 4,020
Urban Outfitters, Inc. (a) 100,000 2,726
-------
14,543
SERVICES - 5.8%
Cognizant Technology Solutions Corp., Class A
(a) 60,000 2,036
Fluor Corp. 17,000 2,477
Nalco Holding Co. 65,000 1,572
Sotheby's 55,000 2,096
VistaPrint Ltd. (a) 45,000 1,928
-------
10,109
TELECOMMUNICATIONS - 4.2%
Ciena Corp. (a) 50,000 1,706
EchoStar Communications Corp., Class A (a) 45,000 1,697
NII Holdings, Inc. (a) 42,000 2,029
Time Warner Telecom, Inc., Class A (a) 95,000 1,928
-------
7,360
TRANSPORTATION - 0.9%
Canadian Pacific Railway, Ltd. 25,000 1,616
-------
TOTAL COMMON STOCKS 169,177
Cost: $129,910
REPURCHASE AGREEMENTS - 3.0%
Fifth Third Bank, Inc.,
3.25%, 01/02/08
(Date of Agreement 12/31/07, proceeds at maturity $5,223,
collateralized by Federal National Mortgage Assoc.
security, 5.00%, 07/01/33, market value $5,378)
Cost: $5,222 5,222 5,222
-------
TOTAL INVESTMENTS - 100.5% 174,399
Cost: $135,132
</Table>
Percentages indicated are based on net assets of $173,569.
(a) Non-income producing security.
- --------------------------------------------------------------------------------
SEE FINANCIAL NOTES
7
CITIZENS FUNDS HOLDINGS (UNAUDITED)
<Table>
<Caption>
- -------------------------------------------------------------------------
SMALL CAP CORE GROWTH FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
COMMON STOCKS - 96.0%
AEROSPACE & DEFENSE - 1.6%
TransDigm Group, Inc. (a) 14,000 632
APPAREL MANUFACTURERS - 5.3%
Crocs, Inc. (a) 16,000 589
Deckers Outdoor Corp. (a) 10,000 1,551
------
2,140
BANKS - 0.7%
Pinnacle Financial Partners, Inc. (a) 10,500 267
BIOTECHNOLOGY - 4.8%
Alexion Pharmaceuticals, Inc. (a) 6,000 450
American Oriental Bioengineering, Inc. (a) 45,000 499
Myriad Genetics, Inc. (a) 10,000 464
Techne Corp. (a) 8,000 528
------
1,941
BROADCASTING - 1.1%
Lin TV Corp., Class A (a) 35,000 426
COMPUTERS - 11.6%
ANSYS, Inc. (a) 20,000 828
Concur Technologies, Inc. (a) 19,000 688
NIC, Inc. 70,000 591
Nuance Communications Inc. (a) 35,000 654
Omniture Inc. (a) 18,000 599
Synaptics, Inc. (a) 11,000 453
VASCO Data Security International, Inc. (a) 18,000 503
VeriFone Holdings, Inc. (a) 15,000 349
------
4,665
ELECTRONICS - 2.7%
Diodes, Inc. (a) 19,000 571
SiRF Technology Holdings, Inc. (a) 21,000 528
------
1,099
ENERGY & UTILITIES - 10.4%
Airgas, Inc. 11,500 599
Atwood Oceanics, Inc. (a) 9,000 902
Core Laboratories N.V. (a) 11,000 1,372
Dresser-Rand Group, Inc. (a) 14,000 547
Holly Corp. 7,000 356
T-3 Energy Services, Inc. (a) 8,500 400
------
4,176
ENGINEERING & CONSTRUCTION - 2.3%
Michael Baker Corp. (a) 12,000 493
Stanley Inc. (a) 14,000 448
------
941
FINANCIAL - DIVERSIFIED - 0.6%
Advanta Corp., Class B 29,000 234
FOODS - 1.3%
Spartan Stores, Inc. 23,500 537
HEALTHCARE - 11.8%
Allscripts Healthcare Solutions, Inc. (a) 19,000 369
Bio-Reference Laboratories, Inc. (a) 10,000 327
Immucor, Inc. (a) 12,000 408
Integra LifeSciences Holdings (a) 9,500 398
Inverness Medical Innovations, Inc. (a) 10,000 562
Kendle International, Inc. (a) 13,500 660
Natus Medical, Inc. (a) 25,000 484
Nighthawk Radiology Holdings, Inc. (a) 20,000 421
Omnicell, Inc. (a) 15,000 404
United Therapeutics Corp. (a) 4,000 391
Ventana Medical Systems, Inc. (a) 3,500 305
------
4,729
INSURANCE - 1.4%
Tower Group, Inc. 16,500 551
INVESTMENT BANKING & BROKERAGE - 3.0%
Affiliated Managers Group, Inc. (a) 5,000 587
Investment Technology Group, Inc. (a) 13,000 619
------
1,206
</Table>
SEE FINANCIAL NOTES
8
DECEMBER 31, 2007 ($ X 1,000)
<Table>
<Caption>
- -------------------------------------------------------------------------
SMALL CAP CORE GROWTH FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
MANUFACTURING - 12.4%
Apogee Enterprises, Inc. 20,000 342
Barnes Group, Inc. 17,500 584
BE Aerospace, Inc. (a) 13,000 689
Bucyrus International, Inc., Class A 6,000 597
Century Aluminum Co. (a) 8,500 458
Itron, Inc. (a) 4,500 432
Middleby Corp. (a) 5,500 421
RTI International Metals, Inc. (a) 7,000 483
Silgan Holdings, Inc. 10,000 519
Tennant Co. 9,000 399
------
4,924
PERSONAL CARE - 1.1%
Chattem, Inc. (a) 6,000 453
PHARMACEUTICALS - 2.2%
Pharmion Corp. (a) 10,000 629
Progenics Pharmaceuticals, Inc. (a) 13,500 244
------
873
RESORTS AND THEME PARKS - 0.7%
Vail Resorts, Inc. (a) 5,500 296
RESTAURANTS - 1.9%
Jack in the Box, Inc. (a) 14,000 361
Texas Roadhouse, Inc., Class A (a) 35,000 387
------
748
RETAIL - 4.5%
Aeropostale, Inc. (a) 16,000 424
Priceline.com, Inc. (a) 12,000 1,378
------
1,802
SERVICES - 9.6%
Bankrate, Inc. (a) 7,000 337
First Cash Financial Services, Inc. (a) 20,000 294
LIFE TIME FITNESS, Inc. (a) 9,000 447
LKQ Corp. (a) 25,000 526
Shutterfly, Inc. (a) 20,000 512
Sotheby's 10,000 381
TheStreet.com, Inc. 48,000 763
VistaPrint Ltd. (a) 14,000 600
------
3,860
TELECOMMUNICATIONS - 3.7%
Atheros Communications, Inc. (a) 20,500 626
NICE Systems Ltd. ADR (a) 25,000 858
------
1,484
WASTE MANAGEMENT - 1.3%
Darling International Inc. (a) 45,000 520
------
TOTAL COMMON STOCKS 38,504
Cost: $30,280
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 4.2%
Fifth Third Bank, Inc.,
3.25%, 01/02/08
(Date of Agreement 12/31/07, proceeds at maturity $1,668,
collateralized by Federal National Mortgage Assoc.
security, 5.00%, 07/01/33, market value $1,717)
Cost: $1,667 1,667 1,667
------
TOTAL INVESTMENTS - 100.2% 40,171
Cost: $31,947
</Table>
Percentages indicated are based on net assets of $40,104.
(a) Non-income producing security.
ADR - American Depositary Receipt
- --------------------------------------------------------------------------------
SEE FINANCIAL NOTES
9
CITIZENS FUNDS HOLDINGS (UNAUDITED)
<Table>
<Caption>
- -------------------------------------------------------------------------
VALUE FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
COMMON STOCKS - 99.4%
AIR FREIGHT - 1.2%
FedEx Corp. 9,469 844
APPAREL MANUFACTURERS - 2.3%
NIKE, Inc., Class B 14,028 902
VF Corp. 9,430 647
------
1,549
BANKS - 2.2%
Bank of America Corp. 21,811 900
ICICI Bank Ltd. ADR 10,000 615
------
1,515
CHEMICALS - 3.1%
Amgen, Inc. (a) 21,000 975
Praxair, Inc. 13,142 1,166
------
2,141
COMPUTERS - 11.3%
Akamai Technologies, Inc. (a) 26,600 920
Corning, Inc. 49,988 1,199
Hewlett-Packard Co. 23,617 1,192
Intel Corp. 40,113 1,069
International Business Machines Corp. 10,356 1,119
Microsoft Corp. 26,624 948
Oracle Corp. (a) 56,003 1,266
------
7,713
CONSUMER PRODUCTS - 1.7%
Kimberly-Clark Corp. 16,353 1,134
ELECTRICAL EQUIPMENT - 1.1%
Emerson Electric Co. 13,306 754
ELECTRONICS - 7.9%
Cisco Systems, Inc. (a) 29,487 798
MEMC Electronic Materials, Inc. (a) 15,107 1,337
Rockwell Automation, Inc. 14,211 980
Texas Instruments, Inc. 31,080 1,038
Thermo Fisher Scientific, Inc. (a) 22,250 1,283
------
5,436
ENERGY & UTILITIES - 16.6%
Allegheny Energy, Inc. 21,450 1,364
Apache Corp. 19,100 2,054
Baker Hughes, Inc. 11,151 904
ConocoPhillips 28,366 2,504
The AES Corp. (a) 53,800 1,151
The Williams Cos., Inc. 35,500 1,270
Transocean, Inc. (a) 15,241 2,182
------
11,429
FINANCIAL - DIVERSIFIED - 8.8%
AMBAC Financial Group, Inc. 23,925 617
Capital One Financial Corp. 14,539 687
Citigroup, Inc. 24,100 710
JPMorgan Chase & Co. 27,226 1,188
Lehman Brothers Holdings, Inc. 17,771 1,163
Merrill Lynch & Co., Inc. 18,558 996
MetLife, Inc. 10,741 662
------
6,023
FOODS - 7.9%
Archer-Daniels-Midland Co. 22,100 1,026
Bunge, Ltd. 7,700 896
General Mills, Inc. 19,700 1,123
Kellogg Co. 22,174 1,163
PepsiCo, Inc. 15,737 1,194
------
5,402
HEALTHCARE - 7.9%
Baxter International, Inc. 15,490 899
Becton, Dickinson & Co. 13,406 1,120
Coventry Health Care, Inc. (a) 13,491 799
Johnson & Johnson, Inc. 17,162 1,145
WellPoint, Inc. (a) 16,359 1,436
------
5,399
INSURANCE - 4.9%
American International Group, Inc. 12,902 752
The Allstate Corp. 14,081 735
The Chubb Corp. 19,392 1,059
The Hartford Financial Services Group, Inc. 9,556 833
------
3,379
INVESTMENT BANKING & BROKERAGE - 1.9%
The Goldman Sachs Group, Inc. 6,040 1,299
</Table>
SEE FINANCIAL NOTES
10
DECEMBER 31, 2007 ($ X 1,000)
<Table>
<Caption>
- -------------------------------------------------------------------------
VALUE FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
MANUFACTURING - 6.8%
3M Co. 9,366 790
Crown Holdings, Inc. (a) 31,200 800
General Cable Corp. (a) 12,750 934
Oshkosh Truck Corp. 15,500 733
Precision Castparts Corp. 9,907 1,374
------
4,631
MULTIMEDIA - 1.5%
News Corp., Class A 48,500 994
PHARMACEUTICALS - 1.0%
Schering-Plough Corp. 25,400 677
RESTAURANTS - 1.6%
McDonald's Corp. 18,633 1,098
RETAIL - 3.4%
Priceline.com, Inc. (a) 10,850 1,246
SUPERVALU, Inc. 14,700 552
Target Corp. 11,082 554
------
2,352
SERVICES - 2.3%
Omnicom Group, Inc. 11,000 523
URS Corp. (a) 19,209 1,043
------
1,566
TELECOMMUNICATIONS - 4.0%
AT&T, Inc. 38,351 1,594
CommScope, Inc. (a) 11,150 549
NII Holdings, Inc. (a) 11,800 570
------
2,713
------
TOTAL COMMON STOCKS 68,048
Cost: $58,757
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 0.6%
Fifth Third Bank, Inc.,
3.25%, 01/02/08
(Date of Agreement 12/31/07, proceeds at maturity $416,
collateralized by Federal National Mortgage Assoc.
security, 5.00%, 07/01/33, market value $428)
Cost: $416 416 416
------
TOTAL INVESTMENTS - 100.0% 68,464
Cost: $59,173
</Table>
Percentages indicated are based on net assets of $68,466.
(a) Non-income producing security.
ADR - American Depositary Receipt
- --------------------------------------------------------------------------------
SEE FINANCIAL NOTES
11
CITIZENS FUNDS HOLDINGS (UNAUDITED)
<Table>
<Caption>
- -------------------------------------------------------------------------
GLOBAL EQUITY FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
COMMON STOCKS - 95.6%
AUTOMOBILE MANUFACTURING - 0.9%
Volvo AB ADR 47,000 776
BANKS - 9.2%
Australia and New Zealand Banking Group Ltd.
ADR 9,500 1,139
Banco Santander Central Hispano SA ADR 70,000 1,508
Bank of America Corp. 23,000 949
Bank of Nova Scotia 25,000 1,263
ICICI Bank Ltd. ADR 20,000 1,230
Julius Baer Holding Ltd. (a) 22,000 1,788
------
7,877
BUILDING PRODUCTS - 1.6%
Lafarge S.A. ADR 30,000 1,350
CHEMICALS - 1.8%
Sigma-Aldrich Corp. 29,000 1,583
COMPUTER SERVICES - 0.9%
Akamai Technologies, Inc. (b) 22,500 779
COMPUTERS - 5.3%
Hewlett Packard Co. 24,000 1,212
International Business Machines Corp. 10,000 1,081
Microsoft Corp. 35,000 1,246
Oracle Corp. (b) 45,000 1,016
------
4,555
CONSTRUCTION - 0.8%
Desarrolladora Homex SA de C.V. ADR (b) 14,000 692
ELECTRONICS - 4.0%
Agilent Technologies, Inc. (b) 30,000 1,102
Cisco Systems, Inc. (b) 40,000 1,083
Thermo Fisher Scientific, Inc. (b) 21,000 1,211
------
3,396
ENERGY & UTILITIES - 12.9%
Allegheny Energy, Inc. 15,000 954
Apache Corp. 12,000 1,290
BG Group plc ADR 12,000 1,370
ConocoPhillips 20,000 1,766
EnCana Corp. 17,500 1,189
Statoil ASA ADR 32,000 977
Transocean Inc. (b) 9,094 1,302
Valero Energy Corp. 14,000 980
Veoilia Environnement ADR 12,500 1,137
------
10,965
ENTERTAINMENT - 3.1%
Nintendo Co., Ltd. (a) 3,000 1,822
The Walt Disney Co. 26,500 855
------
2,677
FINANCIAL - DIVERSIFIED - 7.6%
AFLAC, Inc. 21,000 1,315
American Express Co. 16,000 832
Deutsche Boerse AG (a) 14,000 2,748
Fannie Mae 21,000 840
JPMorgan Chase & Co. 18,000 786
------
6,521
FOOD & BEVERAGES - 5.3%
Coca-Cola Hellenic Bottling Co. S.A. (a) 30,500 1,316
Nestle SA (a) 4,000 1,833
The Coca-Cola Co. 22,000 1,350
------
4,499
HEALTHCARE - 8.3%
Becton, Dickinson & Co. 16,000 1,337
C.R. Bard, Inc. 10,000 948
Fresenius Medical Care AG & Co. KGaA ADR 27,000 1,425
Gilead Sciences, Inc. (b) 20,000 920
Laboratory Corp. of America Holdings (b) 15,000 1,133
Stryker Corp. 18,500 1,382
------
7,145
INSURANCE - 1.0%
Allianz SE ADR 42,000 893
MANUFACTURING - 14.4%
Danaher Corp. 12,000 1,053
Deere & Co. 22,000 2,048
FANUC Ltd. (a) 9,000 878
Johnson Matthey plc (a) 33,000 1,229
Kennametal, Inc. 23,000 871
Komatsu, Ltd. (a) 45,000 1,217
L'Air Liquide SA ADR 66,000 1,964
POSCO ADR 6,000 902
Precision Castparts Corp. 8,000 1,110
Samsung Heavy Industries Co., Ltd.(a)(b) 24,000 1,013
------
12,285
PHARMACEUTICALS - 2.6%
Novo Nordisk A/S ADR 21,000 1,362
Shire plc ADR 12,500 862
------
2,224
</Table>
SEE FINANCIAL NOTES
12
DECEMBER 31, 2007 ($ X 1,000)
<Table>
<Caption>
- -------------------------------------------------------------------------
GLOBAL EQUITY FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
REAL ESTATE - 1.2%
City Developments, Ltd. (a) 105,000 1,023
RESTAURANTS - 1.5%
McDonald's Corp. 22,500 1,325
RETAIL - 4.0%
CVS/ Caremark Corp. 33,000 1,312
Industria de Diseno Textil SA (Inditex) (a) 19,000 1,155
Luxottica Group SpA ADR 30,000 945
------
3,412
SERVICES - 2.4%
Sims Group, Ltd. (a) 48,000 1,125
Swire Pacific, Ltd., Class A (a) 70,000 958
------
2,083
TELECOMMUNICATIONS - 5.9%
America Movil SA de C.V. ADR 19,000 1,167
AT&T, Inc. 19,000 790
PT Telekomunikasi Indonesia ADR 22,000 924
Telenor ASA ADR 14,000 998
Vodafone Group plc (a) 308,402 1,149
------
5,028
TRANSPORTATION - 0.9%
Canadian Pacific Railway, Ltd. 12,000 776
------
TOTAL COMMON STOCKS 81,864
Cost: $62,332
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 4.7%
Fifth Third Bank, Inc.,
3.25%, 01/02/08
(Date of Agreement 12/31/07, proceeds at maturity $4,053,
collateralized by Federal National Mortgage Assoc.
security, 5.00%, 07/01/33, market value $4,174)
Cost: $4,052 4,052 4,052
------
TOTAL INVESTMENTS - 100.3% 85,916
Cost: $66,384
</Table>
<Table>
<Caption>
- -------------------------------------------------------------------------
GLOBAL EQUITY FUND
- -------------------------------------------------------------------------
Percentages indicated are based on net assets of $85,618.
(a) Fair valued security. The approximate
market value and percentage of investments of
securities that were fair valued for the
Global Equity Fund were $19,255 and 22.49%.
(b) Non-income producing security.
ADR - American Depositary Receipt
</Table>
<Table>
The fund's portfolio holdings as of December 31, 2007, were distributed
among the following countries:
-----------------------
PERCENTAGE OF NET ASSETS
SHORT TERM
EQUITY & OTHER TOTAL
-----------------------
Australia 2.6% 2.6%
Canada 2.3% 2.3%
Cayman Islands 1.5% 1.5%
Denmark 1.6% 1.6%
France 5.2% 5.2%
Germany 5.9% 5.9%
Greece 1.5% 1.5%
Hong Kong 1.1% 1.1%
India 1.4% 1.4%
Indonesia 1.1% 1.1%
Italy 1.1% 1.1%
Japan 4.6% 4.6%
Mexico 2.2% 2.2%
Norway 2.3% 2.3%
Republic of Korea 2.2% 2.2%
Singapore 1.2% 1.2%
Spain 3.1% 3.1%
Sweden 0.9% 0.9%
Switzerland 4.2% 4.2%
United Kingdom 5.4% 5.4%
United States 44.2% 4.4% 48.6%
----------------------------
TOTAL 95.6% 4.4% 100.0%
</Table>
- --------------------------------------------------------------------------------
SEE FINANCIAL NOTES
13
CITIZENS FUNDS HOLDINGS (UNAUDITED)
<Table>
<Caption>
- -------------------------------------------------------------------------
BALANCED FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
COMMON STOCKS - 70.3%
AIR FREIGHT - 0.6%
FedEx Corp. 896 80
APPAREL MANUFACTURERS - 1.9%
NIKE, Inc., Class B 2,100 135
VF Corp. 1,521 104
------
239
BANKS - 1.7%
Bank of America Corp. 3,180 131
ICICI Bank Ltd. ADR 1,300 80
------
211
CHEMICALS - 2.5%
Amgen, Inc. (a) 2,750 128
Praxair, Inc. 2,045 181
------
309
COMPUTERS - 8.4%
Akamai Technologies, Inc. (a) 3,400 118
Corning, Inc. 6,238 150
Hewlett-Packard Co. 2,570 130
Intel Corp. 5,960 159
International Business Machines Corp. 1,437 155
Microsoft Corp. 4,010 143
Oracle Corp. (a) 7,725 174
------
1,029
CONSUMER PRODUCTS - 1.2%
Kimberly-Clark Corp. 2,160 150
ELECTRICAL EQUIPMENT - 0.9%
Emerson Electric Co. 2,000 113
ELECTRONICS - 5.7%
Cisco Systems, Inc. (a) 4,200 114
MEMC Electronic Materials, Inc. (a) 1,980 175
Rockwell Automation, Inc. 1,740 120
Texas Instruments, Inc. 3,793 127
Thermo Fisher Scientific, Inc. (a) 2,850 164
------
700
ENERGY & UTILITIES - 12.1%
Allegheny Energy, Inc. 2,620 167
Apache Corp. 2,300 247
Baker Hughes, Inc. 1,600 130
ConocoPhillips 4,200 371
The AES Corp. (a) 6,900 148
The Williams Cos., Inc. 4,500 161
Transocean, Inc. (a) 1,839 263
------
1,487
FINANCIAL - DIVERSIFIED - 6.5%
AMBAC Financial Group, Inc. 2,400 62
Capital One Financial Corp. 1,915 91
Citigroup, Inc. 3,100 91
JPMorgan Chase & Co. 3,670 160
Lehman Brothers Holdings, Inc. 2,549 167
Merrill Lynch & Co., Inc. 2,760 148
MetLife, Inc. 1,440 89
------
808
FOODS - 5.1%
Archer-Daniels-Midland Co. 2,900 135
General Mills, Inc. 2,525 144
Kellogg Co. 3,420 179
PepsiCo, Inc. 2,310 175
------
633
HEALTHCARE - 5.8%
Baxter International, Inc. 2,330 135
Becton, Dickinson & Co. 1,430 120
Coventry Health Care, Inc. (a) 1,670 99
Johnson & Johnson, Inc. 2,540 169
WellPoint, Inc. (a) 2,175 191
------
714
INSURANCE - 3.8%
American International Group, Inc. 1,690 99
The Allstate Corp. 2,085 109
The Chubb Corp. 2,820 154
The Hartford Financial Services Group, Inc. 1,300 113
------
475
INVESTMENT BANKING & BROKERAGE - 1.2%
The Goldman Sachs Group, Inc. 678 146
</Table>
SEE FINANCIAL NOTES
14
DECEMBER 31, 2007 ($ X 1,000)
<Table>
<Caption>
- -------------------------------------------------------------------------
BALANCED FUND
SECURITY SHARES VALUE($)
- -------------------------------------------------------------------------
MANUFACTURING - 4.6%
3M Co. 1,348 114
Crown Holdings, Inc. (a) 4,000 103
General Cable Corp. (a) 1,650 120
Oshkosh Truck Corp. 2,000 95
Precision Castparts Corp. 1,028 142
------
574
MULTIMEDIA - 1.0%
News Corp., Class A 6,200 127
PHARMACEUTICALS - 0.7%
Schering-Plough Corp. 3,300 88
RESTAURANTS - 1.4%
McDonald's Corp. 2,890 170
RETAIL - 1.2%
SUPERVALU, Inc. 1,635 61
Target Corp. 1,756 88
------
149
SERVICES - 1.3%
URS Corp. (a) 2,912 158
TELECOMMUNICATIONS - 2.7%
AT&T, Inc. 4,680 195
CommScope, Inc. (a) 1,450 71
NII Holdings, Inc. (a) 1,500 72
------
338
------
TOTAL COMMON STOCKS 8,698
Cost: $8,164
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.1%
First Horizon Alternative Mortgage
Securities, 4.73%, 06/25/34 (b) 8 8
5.50%, 03/25/35 (b) 9 9
------
Cost: $17 17
CORPORATE BONDS - 5.5%
BANKS - 0.8%
Bank of America Corp., 4.38%, 12/01/10 50 50
Capital One Bank, 6.50%, 06/13/13 50 49
------
99
COMPUTERS - 0.1%
Corning, Inc., 6.20%, 03/15/16 15 15
</Table>
<Table>
<Caption>
- -------------------------------------------------------------------------
BALANCED FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
CONSTRUCTION - 0.2%
KB Home, 5.88%, 01/15/15 15 12
Pulte Homes, Inc., 6.00%, 02/15/35 10 8
------
20
ENERGY & UTILITIES - 0.6%
Atmos Energy, 4.95%, 10/15/14 15 14
Chesapeake Energy Corp., 6.88%, 01/15/16 20 20
Enterprise Products Partners LP, 4.95%,
06/01/10 20 20
XTO Energy, Inc., 5.30%, 06/30/15 20 20
------
74
FINANCIAL - DIVERSIFIED - 1.4%
CIT Group, Inc., 5.00%, 02/01/15 50 43
Citigroup, Inc., 5.06%, 05/18/10 (b) 50 50
HSBC Finance Corp., 4.63%, 09/15/10 50 49
Liberty Mutual Group, 5.75%, 03/15/14 (c) 10 10
Riddell Bell Holdings, 8.38%, 10/01/12 15 14
------
166
FINANCIAL SERVICES - 0.4%
Franklin Resources, Inc., 3.70%, 04/15/08 48 48
FOOD - 0.4%
The Pepsi Bottling Group, Inc., 5.63%,
02/17/09 (c) 50 51
HEALTHCARE - 0.4%
Medtronic, Inc., 4.75%, 09/15/15 50 48
INVESTMENT BANKING & BROKERAGE - 0.1%
The Goldman Sachs Group, Inc., 5.00%,
10/01/14 15 15
MANUFACTURING - 0.0%*
American Standard, Inc., 7.38%, 02/01/08 5 5
</Table>
SEE FINANCIAL NOTES
15
CITIZENS FUNDS HOLDINGS (UNAUDITED)
<Table>
<Caption>
- -------------------------------------------------------------------------
BALANCED FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
REAL ESTATE - 0.0%*
Brandywine Realty Trust, 5.40%, 11/01/14 5 5
RESTAURANTS - 0.4%
McDonald's Corp., 5.00%, 02/15/15 50 50
TELECOMMUNICATIONS - 0.7%
AT&T, Inc., 5.88%, 02/01/12 50 51
Directv Holdings, 6.38%, 06/15/15 30 29
Sprint Nextel Corp., 7.38%, 08/01/15 10 10
------
90
------
TOTAL CORPORATE BONDS 686
Cost: $705
FOREIGN GOVERNMENT BOND - 0.1%
United Mexican States, 6.75%, 09/27/34 15 17
Cost: $15
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.4%
FEDERAL FARM CREDIT BANK - 1.0%
5.83%, 01/14/08 25 25
5.05%, 05/18/17 100 102
------
127
FEDERAL HOME LOAN BANK - 1.0%
5.20%, 05/11/12 15 15
4.88%, 03/11/16 100 104
------
119
FEDERAL HOME LOAN MORTGAGE CORPORATION - 3.6%
4.55%, 01/20/11 5 5
4.50%, 01/15/13 9 9
5.00%, 10/01/18 74 74
5.50%, 10/01/18 47 47
5.20%, 03/05/19 40 40
6.00%, 12/01/20 35 36
5.50%, 03/01/21 78 80
5.50%, 04/01/21 75 75
5.00%, 06/01/35 81 79
------
445
</Table>
<Table>
<Caption>
- -------------------------------------------------------------------------
BALANCED FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 6.8%
5.25%, 01/15/09 14 14
4.38%, 09/15/12 4 4
5.00%, 04/15/15 20 21
5.55%, 08/04/15 100 100
6.00%, 02/25/17 74 76
5.40%, 03/09/17 100 103
5.00%, 10/01/18 67 67
4.50%, 06/01/19 109 107
5.00%, 09/01/19 29 29
5.50%, 03/25/29 100 100
6.50%, 07/01/32 2 2
6.00%, 11/01/32 1 1
5.50%, 03/01/33 23 23
4.58%, 12/01/34 26 26
4.83%, 01/01/35 (b) 15 15
4.82%, 08/01/35 80 79
5.50%, 10/01/35 76 76
------
843
------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 1,534
Cost: $1,517
U.S. TREASURY NOTES - 7.8%
6.50%, 02/15/10 100 107
4.00%, 03/15/10 100 102
3.88%, 05/15/10 35 36
4.75%, 05/15/14 10 11
4.00%, 02/15/15 100 101
4.13%, 05/15/15 30 31
4.50%, 11/15/15 100 104
4.50%, 02/15/16 100 104
5.13%, 05/15/16 100 107
4.50%, 05/15/17 100 104
4.75%, 08/15/17 100 106
5.38%, 02/15/31 50 56
------
COST: $928 969
</Table>
SEE FINANCIAL NOTES
16
DECEMBER 31, 2007 ($ X 1,000)
<Table>
<Caption>
- -------------------------------------------------------------------------
BALANCED FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 3.7%
Fifth Third Bank, Inc.,
3.25%, 01/02/08
(Date of Agreement 12/31/07, proceeds at maturity $461,
collateralized by Federal National Mortgage Assoc.
security, 5.00%, 07/01/33, market value $475)
Cost: $461 461 461
------
TOTAL INVESTMENTS - 99.9% 12,382
Cost: $11,807
</Table>
Percentages indicated are based on net assets of $12,389.
(a) Non-income producing security.
(b) Variable rate security. The rate presented represents the rate in effect
at December 31, 2007.
(c) Rule 144A security.
* Rounds to less than 0.1%.
ADR - American Depositary Receipt
- --------------------------------------------------------------------------------
SEE FINANCIAL NOTES
17
CITIZENS FUNDS HOLDINGS (UNAUDITED)
<Table>
<Caption>
- -------------------------------------------------------------------------
INCOME FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 21.2%
Capital One Multi-Asset Execution Trust,
5.21%, 09/15/11 (a) 700 700
Chase Manhattan Auto Owner Trust, 4.88%,
06/15/12 240 240
Citibank Credit Card Issuance Trust, 3.50%,
08/16/10 285 283
Citigroup Commercial Mortgage Trust, 4.22%,
09/20/51 (b) 500 493
Crusade Global Trust,
4.93%, 11/15/37 (a) 384 384
5.04%, 11/19/37 (a) 270 270
First Horizon Alternative Mortgage
Securities, 4.73%, 06/25/34 (a) 626 620
First Union National Bank Commercial
Mortgage, 6.42%, 08/15/33 (a) 289 302
Greenwich Capital Commercial Funding Corp.,
4.95%, 01/11/35 525 526
3.92%, 08/10/42 143 141
GS Mortgage Securities Corp. II, 4.61%,
01/10/40 800 790
Harley-Davidson Motorcycle Trust, 3.20%,
05/15/12 426 420
LB-UBS Commercial Mortgage Trust,
6.65%, 11/15/27 425 449
6.37%, 12/15/28 900 947
5.02%, 09/15/40 (a) 407 390
Merrill Lynch/Countrywide Commercial Mortgage
Investors, Inc., 5.10%, 03/25/30 (a) 157 154
Merrill Lynch/Countrywide Commercial Mortgage
Trust, 4.71%, 07/12/46 (a) 639 635
5.53%, 03/12/51(a) 280 276
Puma Finance Ltd., 5.10%, 08/09/35 (a) (b)
(c) 600 580
Wachovia Bank Commercial Mortgage Trust,
4.96%, 11/15/35 700 700
5.18%, 07/15/42 510 503
------
Cost: $9,766 9,803
CORPORATE BONDS - 13.0%
AIRLINES - 1.0%
Northwest Airlines, Inc., 6.26%, 11/20/21 468 468
BANKING - 3.9%
Banco Mercantil del Norte, 6.86%, 10/13/21
(b) 600 591
Bank of America Corp., 5.30%, 03/15/17 375 365
National City Bank, 5.52%, 06/07/17 (a) 465 407
PNC Bank, 6.00%, 12/07/17 470 466
Regions Financial Corp., 7.38%, 12/10/37 15 15
------
1,844
COMPUTERS - 0.8%
Dell, Inc., 7.10%, 04/15/28 350 380
FINANCIAL - DIVERSIFIED - 2.2%
Citigroup Inc.,
5.85%, 07/02/13 352 362
5.50%, 02/15/17 355 345
Wachovia Corp., 5.63%, 10/15/16 350 345
------
1,052
HEALTHCARE - 0.8%
Covidien International, 6.55%, 10/15/37 (b) 355 369
INSURANCE - 1.6%
Berkley (WR) Corp., 5.60%, 05/15/15 346 335
Lincoln National Corp, 6.15%, 04/07/36 400 383
------
718
OFFICE EQUIPMENT & SERVICES - 0.3%
Ikon Office Solutions, 7.75%, 09/15/15 120 125
REITS - DIVERSIFIED - 0.8%
CBG Florida REIT Corp., 7.11%,
</Table>
SEE FINANCIAL NOTES
18
DECEMBER 31, 2007 ($ X 1,000)
<Table>
<Caption>
- -------------------------------------------------------------------------
INCOME FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
05/29/49 (a) (b) 375 349
TELECOMMUNICATIONS - 1.6%
Comcast Corp., 5.88%, 02/15/18 355 354
Embarq Corp., 8.00%, 06/01/36 355 374
------
728
------
TOTAL CORPORATE BONDS 6,033
Cost: $6,074
U.S. GOVERNMENT AGENCY OBLIGATIONS - 41.4%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 14.3%
4.50%, 04/01/20 1,184 1,163
5.00%, 10/01/35 1,650 1,611
6.00%, 07/01/36 1,678 1,703
5.50%, 03/01/37 1,180 1,178
5.50%, 08/01/37 943 941
------
6,596
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 27.1%
5.76%, 12/25/11 200 206
4.50%, 01/01/20 1,343 1,320
5.00%, 08/01/20 1,339 1,340
4.40%, 11/25/33 651 649
5.50%, 03/01/36 1,677 1,675
5.50%, 04/01/36 1,679 1,678
6.00%, 07/01/36 1,799 1,827
5.50%, 03/01/37 914 913
5.50%, 06/01/37 1,335 1,320
5.88%, 09/01/37 (a) 689 706
6.00%, 10/01/37 891 898
------
12,532
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 19,128
Cost: $18,699
U.S. TREASURY NOTES - 23.8%
4.63%, 07/31/09 3,341 3,419
4.63%, 07/31/12 2,425 2,546
4.75%, 08/15/17 3,123 3,298
4.50%, 02/15/36 1,738 1,747
------
Cost: $10,620 11,010
REPURCHASE AGREEMENTS - 0.2%
Fifth Third Bank, Inc.,
3.25%, 01/02/08
(Date of Agreement 12/31/07, proceeds at
maturity $74, collateralized by Federal
National Mortgage Assoc. security, 5.00%,
07/01/33, market value $76)
Cost: $74 74 74
------
TOTAL INVESTMENTS - 99.6% 46,048
Cost: $45,233
</Table>
Percentages indicated are based on net assets of $46,238.
(a) Variable rate security. The rate presented represents the rate in effect at
December 31, 2007.
(b) Rule 144A security.
(c) Fair valued security. The approximate market value and percentage of
investments of securities that were fair valued for the Income Fund were $580
and 1.25%.
- --------------------------------------------------------------------------------
SEE FINANCIAL NOTES
19
CITIZENS FUNDS HOLDINGS (UNAUDITED)
<Table>
<Caption>
- -------------------------------------------------------------------------
MONEY MARKET FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 0.2%
City National Bank of New Jersey,
4.50%, 03/13/08 (a) 100 100
Self Help Credit Union,
4.98%, 03/14/08 (a) 100 100
------
Cost: $200 200
COMMERCIAL PAPER - 69.4%
American Express Credit, 5.36%, 05/16/08 2,000 1,984
American General Finance Corp.,
5.19%, 01/02/08 645 645
4.79%, 01/14/08 1,247 1,245
4.97%, 01/23/08 1,600 1,595
Banco Santander Puerto Rico,
5.01%, 01/10/08 2,172 2,170
5.21%, 01/15/08 1,000 998
5.02%, 01/24/08 1,000 997
Barclays Capital PLC,
4.61%, 01/16/08 1,400 1,397
4.68%, 01/17/08 250 249
4.88%, 01/25/08 100 100
5.11%, 02/19/08 1,000 993
5.02%, 02/20/08 1,372 1,363
Becton Dickinson, 4.32%, 02/14/08 586 583
BMW U.S. Capital,
4.28%, 01/17/08 (b) 1,910 1,907
4.30%, 01/28/08 (b) 1,490 1,485
Cooperative Association of Tractor Dealers,
5.47%, 01/18/08 720 718
5.18%, 02/07/08 1,228 1,221
5.18%, 02/20/08 484 481
Coca Cola Co., 4.82%, 01/07/08 (b) 1,064 1,063
Harley Davidson Funding Corp.,
4.61%, 02/04/08 (b) 1,444 1,438
4.48%, 02/13/08 (b) 1,908 1,898
ING America Insurance,
4.78%, 01/14/08 169 169
4.72%, 01/31/08 1,100 1,096
4.85%, 02/05/08 1,322 1,315
J.P. Morgan Chase & Co.,
4.50%, 01/03/08 1,000 1,000
5.19%, 01/22/08 854 851
4.60%, 02/12/08 333 331
Merrill Lynch & Co.,
5.44%, 01/03/08 1,021 1,021
5.28%, 01/11/08 1,229 1,226
5.25%, 01/25/08 500 498
5.40%, 01/31/08 953 949
4.99%, 02/05/08 506 504
Metlife Funding, 4.29%, 02/22/08 (b) 2,000 1,988
The Procter & Gamble Co.,
4.31%, 01/25/08 (b) 1,514 1,510
4.28%, 01/29/08 (b) 1,630 1,624
4.26%, 02/08/08 (b) 1,000 996
Rabobank USA Financial Corp.,
4.30%, 01/02/08 1,072 1,072
5.12%, 01/04/08 1,770 1,769
Societe Generale,
5.21%, 01/18/07 1,000 998
4.86%, 02/01/08 1,900 1,892
5.22%, 02/12/08 592 588
Stanley Works,
4.53%, 01/08/08 (b) 1,500 1,499
4.59%, 01/30/08 (b) 1,831 1,824
UBS Finance Corp.,
4.79%, 01/24/08 1,000 997
5.19%, 02/05/08 1,000 995
4.65%, 02/11/08 1,180 1,174
4.82%, 02/14/08 1,037 1,031
Verizon Communications,
4.94%, 01/07/08 (b) 916 915
4.94%, 01/08/08 (b) 1,000 999
4.77%, 01/09/08 (b) 2,338 2,336
Wells Fargo & Co.,
4.32%, 01/02/08 1,000 1,000
4.33%, 01/11/08 383 383
4.32%, 01/14/08 1,000 998
4.32%, 01/16/08 1,000 998
------
Cost: $61,076 61,076
</Table>
SEE FINANCIAL NOTES
20
DECEMBER 31, 2007 ($ X 1,000)
<Table>
<Caption>
- -------------------------------------------------------------------------
MONEY MARKET FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($)
- -------------------------------------------------------------------------
MUNICIPAL NOTES - 7.4%
Massachusetts State Development Finance
Agency, 4.45%, 12/01/40 (c) 3,000 3,000
New York State Housing Finance Agency, 5.20%,
11/15/29 (c) 3,500 3,500
------
Cost: $6,500 6,500
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 18.3%
5.32%, 01/15/08 1,000 999
5.15%, 01/22/08 1,000 1,000
4.61%, 04/10/08 1,127 1,128
4.25%, 05/16/08 625 623
5.38%, 05/21/08 129 128
4.22%, 05/30/08 1,600 1,590
4.29%, 06/12/08 1,000 1,000
4.74%, 06/15/08 1,096 1,085
4.14%, 07/15/08 1,000 992
4.15%, 07/15/08 1,948 1,940
4.18%, 08/15/08 95 95
4.07%, 09/15/08 1,300 1,296
4.05%, 10/10/08 2,150 2,153
5.01%, 10/27/08 500 500
4.22%, 11/17/08 605 605
5.50%, 04/16/12 1,000 1,000
------
Cost: $16,134 16,134
U.S. TREASURY BILLS - 2.6%
U.S. Treasury Bills, 2.92%, 03/06/08 2,280 2,268
------
Cost: $2,268
TOTAL INVESTMENTS - 97.9% 86,178
Cost: $86,178
</Table>
Percentages indicated are based on net assets of $88,024.
a) On December 31, 2007, the fund owned the following restricted securities
constituting 0.23% of net assets which may not be publicly sold without
registration under the Securities Act of 1933. These securities are valued at
their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Trust's Board of Trustees.
Additional information on the securities is as follows:
City National Bank of New Jersey
Acquisition Date: March 14, 2007
Cost: $100
Unit Cost: $1.00
Value: $100
Self Help Credit Union
Acquisition Date: September 14, 2007
Cost: $100
Unit Cost: $1.00
Value: $100
b) Rule 144A security.
c) Variable rate security. The rate presented represents the rate in effect at
December 31, 2007.
- --------------------------------------------------------------------------------
SEE FINANCIAL NOTES
21
STATEMENTS OF ASSETS
AND LIABILITIES (UNAUDITED)
<Table>
<Caption>
Core Growth Emerging Growth Small Cap Core
Fund Fund Growth Fund
- -----------------------------------------------------------------------------------------------
ASSETS
Investments, at value $311,434,409 $ 169,177,551 $38,503,925
Repurchase agreements 751,619 5,221,654 1,667,337
-----------------------------------------------
Total investments 312,186,028 174,399,205 40,171,262
Cash -- -- --
Foreign currency -- -- --
Receivables:
Interest and dividends 150,281 39,588 991
Tax reclaims -- -- --
Capital shares issued 406,897 50,576 82,038
Due from investment adviser -- -- --
Due from distributor 16,925 11,813 2,736
Prepaid expenses 24,110 21,305 12,271
-----------------------------------------------
Total assets 312,784,241 174,522,487 40,269,298
LIABILITIES
Payables:
Dividends to shareholders -- -- --
Capital shares redeemed 371,500 130,830 32,160
Investment management fees 394,566 447,652 52,652
Administrative fees 118,371 67,148 15,796
Distribution fees 184,277 129,868 30,686
Shareholder service fees 193,105 8,813 1,434
Transfer agent expenses 176,226 124,331 23,377
Other accrued expenses 50,119 44,732 9,573
-----------------------------------------------
Total liabilities 1,488,164 953,374 165,678
- -----------------------------------------------------------------------------------------------
NET ASSETS $311,296,077 $ 173,569,113 $40,103,620
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
NET ASSETS
Standard Shares:
Net assets $245,189,448 $ 170,110,547 $40,103,620
Number of shares outstanding 10,497,187 9,161,425 3,158,337
Net asset value, offering and redemption
price per share $ 23.36 $ 18.57 $ 12.70
Institutional Shares:
Net assets $ 64,151,354 $ 528,014 --
Number of shares outstanding 3,260,449 27,056 --
Net asset value, offering and redemption
price per share $ 19.68 $ 19.52 --
Administrative Shares:
Net assets $ 1,955,275 $ 2,930,552 --
Number of shares outstanding 81,135 153,605 --
Net asset value, offering and redemption
price per share $ 24.10 $ 19.08 --
Net assets consist of:
Paid-in capital $275,955,237 $ 281,596,626 $32,355,564
Accumulated (Distributions in excess of) net
investment income/loss (637,793) (1,247,491) (197,943)
Accumulated net realized gains/losses on
investments and foreign currencies 704,929 (146,047,676) (278,494)
Net unrealized appreciation/depreciation on
investments and foreign currencies 35,273,704 39,267,654 8,224,493
- -----------------------------------------------------------------------------------------------
NET ASSETS $311,296,077 $ 173,569,113 $40,103,620
- -----------------------------------------------------------------------------------------------
Investments, at cost $276,912,324 $ 135,131,551 $31,946,769
Foreign currency, at cost -- -- --
</Table>
SEE FINANCIAL NOTES
22
AS OF DECEMBER 31, 2007
<Table>
<Caption>
Value Global Equity Balanced Income Money Market
Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------
$68,048,630 $ 81,864,029 $11,921,209 $45,974,057 $86,178,274
415,655 4,051,911 461,119 73,910 --
- --------------------------------------------------------------------------
68,464,285 85,915,940 12,382,328 46,047,967 86,178,274
-- -- -- -- 1,834,222
-- 197 -- -- --
45,548 66,957 40,659 405,262 175,105
-- 31,706 -- -- --
219,035 93,991 144 14,779 --
68,403 -- 24,728 -- --
4,019 5,789 836 3,183 --
10,397 16,240 7,556 7,143 14,923
- --------------------------------------------------------------------------
68,811,687 86,130,820 12,456,251 46,478,334 88,202,524
-- -- 4,775 13,700 8,416
82,429 112,820 1,941 53,208 --
149,973 215,743 32,243 75,957 75,538
30,104 32,360 4,658 17,529 32,373
43,306 62,163 9,002 33,955 --
-- 3,900 390 2,233 3,409
28,005 62,624 8,134 28,523 34,779
12,134 23,396 5,944 15,101 23,834
- --------------------------------------------------------------------------
345,951 513,006 67,087 240,206 178,349
- --------------------------------------------------------------------------
$68,465,736 $ 85,617,814 $12,389,164 $46,238,128 $88,024,175
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
$58,891,553 $ 84,151,183 $12,389,164 $46,238,128 $77,149,276
3,937,598 3,727,457 1,013,281 4,682,002 77,280,350
$ 14.96 $ 22.58 $ 12.23 $ 9.88 $ 1.00
$ 9,574,183 $ 402,569 -- -- $10,874,899
639,974 17,089 -- -- 10,884,614
$ 14.96 $ 23.56 -- -- $ 1.00
-- $ 1,064,062 -- -- --
-- 46,216 -- -- --
-- $ 23.02 -- -- --
$62,082,023 $ 175,156,065 $12,021,953 $51,967,386 $88,098,913
(11,591) (652,756) 418 22,709 (36,238)
(2,896,456) (108,419,007) (208,874) (6,566,769) (38,500)
9,291,760 19,533,512 575,667 814,802 --
- --------------------------------------------------------------------------
$68,465,736 $ 85,617,814 $12,389,164 $46,238,128 $88,024,175
- --------------------------------------------------------------------------
$59,172,525 $ 66,384,060 $11,806,661 $45,233,165 $86,178,274
-- 136 -- -- --
</Table>
SEE FINANCIAL NOTES
23
STATEMENTS OF OPERATIONS (UNAUDITED)
<Table>
<Caption>
Core Growth Emerging Growth Small Cap Core
Fund Fund Growth Fund
- ----------------------------------------------------------------------------------------------
INVESMENT INCOME
Interest $ 209,681 $ 126,237 $ 56,144
Dividend (1) 1,289,534 304,495 40,520
- ----------------------------------------------------------------------------------------------
Total investment income 1,499,215 430,732 96,664
EXPENSES
Investment management fees 772,876 896,379 104,966
Administrative fees 231,864 134,457 31,490
Distribution fees:
Standard shares 312,435 219,243 52,483
Administrative shares 2,434 4,233 --
Shareholder service fees:
Standard shares 316,484 50,149 10,184
Institutional shares 367 55 --
Administrative shares 36 46 --
Transfer agent expenses:
Standard shares 297,067 242,631 59,314
Institutional shares 1,101 185 --
Administrative shares 550 441 --
Accounting expenses 59,373 36,851 9,653
Custody expenses 5,703 3,619 1,781
Registration expenses 20,128 17,466 8,707
Trustee expenses 29,521 17,857 4,064
Other expenses 103,994 66,424 14,701
- ----------------------------------------------------------------------------------------------
Total expenses before reimbursements or
waivers 2,153,933 1,690,036 297,343
Reimbursements or waivers from adviser -- -- --
Reimbursements or waivers from distributor (16,925) (11,813) (2,736)
- ----------------------------------------------------------------------------------------------
Net expenses 2,137,008 1,678,223 294,607
- ----------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/LOSS $ (637,793) $(1,247,491) $ (197,943)
REALIZED AND UNREALIZED GAINS/LOSSES ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS
Realized gains/losses on investments and
foreign currency transactions $ 7,957,505 $ 9,746,411 $ 1,393,349
Change in unrealized
appreciation/depreciation on investments
and foreign currencies 3,365,463 (8,566,601) (1,269,018)
- ----------------------------------------------------------------------------------------------
Net realized and unrealized gains/losses on
investments and foreign currencies 11,322,968 1,179,810 124,331
CHANGE IN NET ASSETS FROM OPERATIONS $10,685,175 $ (67,681) $ (73,612)
(1) Dividend income net of withholding taxes. For the six months ended December 31, 2007,
withholding taxes for the Global Equity Fund were $2,178.
</Table>
SEE FINANCIAL NOTES
24
FOR THE SIX MONTHS ENDED DECEMBER 31, 2007
<Table>
<Caption>
Value Global Equity Balanced Income Money Market
Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------
$ 62,472 $ 87,277 $ 89,952 $1,247,769 $2,239,210
480,947 484,437 65,821 -- --
- -----------------------------------------------------------------------
543,419 571,714 155,773 1,247,769 2,239,210
237,114 422,224 39,501 151,947 150,121
50,810 63,334 9,116 35,065 64,338
73,137 103,765 15,192 58,441 --
-- 1,279 -- -- --
10,163 23,576 3,545 12,573 21,526
2 26 -- -- 183
-- 18 -- -- --
71,620 133,537 13,853 52,875 85,434
16 138 -- -- 735
-- 505 -- -- --
13,220 26,194 8,480 13,971 17,304
1,746 4,340 2,507 2,940 5,446
11,150 17,012 8,058 7,275 16,011
6,280 8,099 1,164 4,642 8,139
20,717 30,760 4,387 16,858 30,504
- -----------------------------------------------------------------------
495,975 834,807 105,803 356,587 399,741
(73,994) -- (26,157) -- --
(4,019) (5,789) (836) (3,183) --
- -----------------------------------------------------------------------
417,962 829,018 78,810 353,404 399,741
- -----------------------------------------------------------------------
$ 125,457 $ (257,304) $ 76,963 $ 894,365 $1,839,469
$ (657,954) $3,838,931 $(177,771) $ 170,667 --
(761,648) 826,188 30,927 1,263,193 --
- -----------------------------------------------------------------------
(1,419,602) 4,665,119 (146,844) 1,433,860 --
$(1,294,145) $4,407,815 $ (69,881) $2,328,225 $1,839,469
</Table>
SEE FINANCIAL NOTES
25
STATEMENTS OF CHANGES
IN NET ASSETS
<Table>
<Caption>
CORE GROWTH FUND EMERGING GROWTH FUND
- ----------------------------------------------------------------------------------------------------------
For the For the
six months six months
ended For the ended For the
12/31/07 year ended 12/31/07 year ended
(Unaudited) 06/30/07 (Unaudited) 06/30/07
- ----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income/loss $ (637,793) $ 59,356 $ (1,247,491) $ (1,249,526)
Realized gains/losses on investments and
foreign currency transations 7,957,505 22,954,092 9,746,411 18,114,469
Change in unrealized appreciation/depreciation
on investments and forieign currencies 3,365,463 9,443,863 (8,566,601) 5,259,708
- ----------------------------------------------------------------------------------------------------------
Change in net assets from operations 10,685,175 32,457,311 (67,681) 22,124,651
Dividends to Shareholders:
From net investment income:
Standard Shares -- -- -- --
Institutional Shares -- (267,821) -- --
Administrative Shares -- (3,435) -- --
From net realized gains on investments:
Standard Shares (2,433,283) -- -- --
Institutional Shares (744,593) -- -- --
Administrative Shares (18,711) -- -- --
- ----------------------------------------------------------------------------------------------------------
Total dividends (3,196,587) (271,256) -- --
Change in net assets from capital transactions 3,236,670 (46,703,158) (8,592,595) (16,568,980)
CHANGE IN NET ASSETS $ 10,725,258 $(14,517,103) $ (8,660,276) $ 5,555,671
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period $300,570,819 $315,087,922 $182,229,389 $176,673,718
End of period $311,296,077 $300,570,819 $173,569,113 $182,229,389
- ----------------------------------------------------------------------------------------------------------
Accumulated (distributions in excess of) net
investment income/loss $ (637,793) -- $ (1,247,491) --
- ----------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS
Standard Shares
Proceeds from shares issued $ 5,381,164 $ 11,987,796 $ 8,203,672 $ 17,850,867
Dividends reinvested 2,375,443 -- -- --
Cost of shares redeemed (18,636,121) (58,212,483) (15,489,481) (32,484,880)
------------------------------------------------------
Net change (10,879,514) (46,224,687) (7,285,809) (14,634,013)
------------------------------------------------------
Institutional Shares
Proceeds from shares issued $ 36,407,896 $ 22,907,918 $ 52,475 $ 110,287
Dividends reinvested 728,853 260,617 -- --
Cost of shares redeemed (23,059,760) (23,655,264) (40,833) (568,881)
------------------------------------------------------
Net change 14,076,989 (486,729) 11,642 (458,594)
------------------------------------------------------
Administrative Shares
Proceeds from shares issued $ 117,700 $ 295,116 $ 158,322 $ 432,065
Dividends reinvested 18,711 3,435 -- --
Cost of shares redeemed (97,216) (290,293) (1,476,750) (1,908,438)
------------------------------------------------------
Net change 39,195 8,258 (1,318,428) (1,476,373)
------------------------------------------------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 3,236,670 $(46,703,158) $ (8,592,595) $(16,568,980)
- ----------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Standard Shares
Issued 232,423 570,483 439,730 1,041,779
Reinvested 100,399 -- -- --
Redeemed (801,309) (2,762,464) (832,875) (1,896,311)
------------------------------------------------------
Net change (468,487) (2,191,981) (393,145) (854,532)
------------------------------------------------------
Institutional Shares
Issued 1,853,305 1,265,704 2,639 6,012
Reinvested 36,571 14,850 -- --
Redeemed (1,188,546) (1,335,466) (2,026) (32,123)
------------------------------------------------------
Net change 701,330 (54,912) 613 (26,111)
------------------------------------------------------
Administrative Shares
Issued 4,894 13,711 8,248 24,460
Reinvested 767 160 -- --
Redeemed (4,004) (13,525) (75,005) (106,436)
------------------------------------------------------
Net change 1,657 346 (66,757) (81,976)
------------------------------------------------------
CHANGE IN SHARES FROM SHARE TRANSACTIONS 234,500 (2,246,547) (459,289) (962,619)
- ----------------------------------------------------------------------------------------------------------
</Table>
SEE FINANCIAL NOTES
26
<Table>
<Caption>
SMALL CAP CORE GROWTH FUND VALUE FUND
- -----------------------------------------------------------
For the For the
six months six months
ended For the year ended For the year
12/31/07 ended 12/31/07 ended
(Unaudited) 06/30/07 (Unaudited) 06/30/07
- -----------------------------------------------------------
$ (197,943) $ (257,733) $ 125,457 $ 212,668
1,393,349 2,559,643 (657,954) 4,566,736
(1,269,018) 3,014,717 (761,648) 4,599,628
- -----------------------------------------------------------
(73,612) 5,316,627 (1,294,145) 9,379,032
-- -- (156,728) (156,486)
-- -- (57,933) (32,960)
-- -- -- --
(3,299,694) (1,113,792) -- --
-- -- -- --
-- -- -- --
- -----------------------------------------------------------
(3,299,694) (1,113,792) (214,661) (189,446)
1,646,537 (282,388) 5,804,169 16,463,300
$(1,726,769) $ 3,920,447 $ 4,295,363 $25,652,886
- -----------------------------------------------------------
- -----------------------------------------------------------
$41,830,389 $37,909,942 $64,170,373 $38,517,487
$40,103,620 $41,830,389 $68,465,736 $64,170,373
- -----------------------------------------------------------
$ (197,943) -- $ (11,591) $ 77,613
- -----------------------------------------------------------
$ 4,055,734 $ 8,206,292 $ 9,097,043 $23,089,245
3,133,672 1,065,027 149,751 147,501
(5,542,869) (9,553,707) (5,400,558) (7,879,983)
- -----------------------------------------------------------
1,646,537 (282,388) 3,846,236 15,356,763
- -----------------------------------------------------------
-- -- $ 1,900,000 $ 1,073,577
-- -- 57,933 32,960
-- -- -- --
- -----------------------------------------------------------
-- -- 1,957,933 1,106,537
- -----------------------------------------------------------
-- -- -- --
-- -- -- --
-- -- -- --
- -----------------------------------------------------------
-- -- -- --
- -----------------------------------------------------------
$ 1,646,537 $ (282,388) $ 5,804,169 $16,463,300
- -----------------------------------------------------------
295,150 659,884 603,432 1,635,323
243,676 86,799 9,885 10,528
(403,503) (760,894) (357,463) (561,158)
- -----------------------------------------------------------
135,323 (14,211) 255,854 1,084,693
- -----------------------------------------------------------
-- -- 128,640 77,788
-- -- 3,824 2,354
-- -- -- --
- -----------------------------------------------------------
-- -- 132,464 80,142
- -----------------------------------------------------------
-- -- -- --
-- -- -- --
-- -- -- --
- -----------------------------------------------------------
-- -- -- --
- -----------------------------------------------------------
135,323 (14,211) 388,318 1,164,835
- -----------------------------------------------------------
</Table>
SEE FINANCIAL NOTES
27
STATEMENTS OF CHANGES
IN NET ASSETS
<Table>
<Caption>
GLOBAL EQUITY FUND BALANCED FUND
- ----------------------------------------------------------------------------------------------------------
For the For the
six months six months
ended For the ended For the
12/31/07 year ended 12/31/07 year ended
(Unaudited) 06/30/07 (Unaudited) 06/30/07
- ----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income/loss $ (257,304) $ 130,311 $ 76,963 $ 166,111
Realized gains/losses on investments and
foreign currency transactions 3,838,931 8,768,100 (177,771) 861,077
Change in unrealized appreciation/depreciation
on investments and foreign currencies 826,188 3,906,892 30,927 256,234
- ----------------------------------------------------------------------------------------------------------
Change in net assets from operations 4,407,815 12,805,303 (69,881) 1,283,422
Dividends to Shareholders:
From net investment income:
Standard Shares (37,679) -- (76,033) (165,712)
Institutional Shares (2,273) -- -- --
Administrative Shares (3,243) -- -- --
From net realized gains on investments:
Standard Shares -- -- (868,662) (160,217)
- ----------------------------------------------------------------------------------------------------------
Total dividends (43,195) -- (944,695) (325,929)
Change in net assets from capital transactions (1,871,454) (11,239,914) 1,603,205 (237,534)
CHANGE IN NET ASSETS $ 2,493,166 $ 1,565,389 $ 588,629 $ 719,959
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period $ 83,124,648 $ 81,559,259 $ 11,800,535 $ 11,080,576
End of period $ 85,617,814 $ 83,124,648 $ 12,389,164 $ 11,800,535
- ----------------------------------------------------------------------------------------------------------
Accumulated (distributions in excess of) net
investment income/loss $ (652,756) $ (352,257) $ 418 $ (512)
- ----------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS
Standard Shares
Proceeds from shares issued $ 4,262,386 $ 8,295,007 $ 1,231,525 $ 1,839,305
Dividends reinvested 35,823 -- 924,565 303,088
Cost of shares redeemed (6,192,070) (18,526,500) (552,885) (2,379,927)
------------------------------------------------------
Net change (1,893,861) (10,231,493) 1,603,205 (237,534)
------------------------------------------------------
Institutional Shares
Proceeds from shares issued $ -- $ 10,408 -- --
Dividends reinvested 6 -- -- --
Cost of shares redeemed (30,471) (410,482) -- --
------------------------------------------------------
Net change (30,465) (400,074) -- --
------------------------------------------------------
Administrative Shares
Proceeds from shares issued $ 89,429 $ 188,720 -- --
Dividends reinvested 3,243 -- -- --
Cost of shares redeemed (39,800) (797,067) -- --
------------------------------------------------------
Net change 52,872 (608,347) -- --
------------------------------------------------------
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (1,871,454) $(11,239,914) $ 1,603,205 $ (237,534)
- ----------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Standard Shares
Issued 194,682 423,164 93,384 145,765
Reinvested 1,589 -- 74,640 23,875
Redeemed (283,061) (943,976) (42,124) (187,256)
------------------------------------------------------
Net change (86,790) (520,812) 125,900 (17,616)
------------------------------------------------------
Institutional Shares
Issued -- 494 -- --
Reinvested -- -- -- --
Redeemed (1,387) (20,506) -- --
------------------------------------------------------
Net change (1,387) (20,012) -- --
------------------------------------------------------
Administrative Shares
Issued 3,987 9,461 -- --
Reinvested 141 -- -- --
Redeemed (1,810) (39,819) -- --
------------------------------------------------------
Net change 2,318 (30,358) -- --
------------------------------------------------------
CHANGE IN SHARES FROM SHARE TRANSACTIONS (85,859) (571,182) 125,900 (17,616)
- ----------------------------------------------------------------------------------------------------------
</Table>
SEE FINANCIAL NOTES
28
<Table>
<Caption>
INCOME FUND MONEY MARKET FUND
- -----------------------------------------------------------
For the For the
six months six months
ended For the year ended For the year
12/31/07 ended 12/31/07 ended
(Unaudited) 06/30/07 (Unaudited) 06/30/07
- -----------------------------------------------------------
$ 894,365 $ 1,936,277 $ 1,839,469 $ 3,790,387
170,667 66,811 -- 96
1,263,193 290,021 -- --
- -----------------------------------------------------------
2,328,225 2,293,109 1,839,469 3,790,483
(877,100) (1,880,480) (1,636,324) (3,307,059)
-- -- (241,133) (482,567)
-- -- -- --
-- -- -- --
- -----------------------------------------------------------
(877,100) (1,880,480) (1,877,457) (3,789,626)
(1,978,449) (3,967,851) 5,530,119 (1,629,502)
$ (527,324) $(3,555,222) $ 5,492,131 $(1,628,645)
- -----------------------------------------------------------
- -----------------------------------------------------------
$46,765,452 $50,320,674 $82,532,044 $84,160,689
$46,238,128 $46,765,452 $88,024,175 $82,532,044
- -----------------------------------------------------------
$ 22,709 $ 5,444 $ (36,238) $ 1,750
- -----------------------------------------------------------
$ 2,132,273 $ 5,138,791 $34,665,310 $65,280,521
797,712 1,711,712 1,584,475 3,201,732
(4,908,434) (10,818,354) (32,082,871) (69,727,223)
- -----------------------------------------------------------
(1,978,449) (3,967,851) 4,166,914 (1,244,970)
- -----------------------------------------------------------
-- -- $ 2,723,068 $ 4,849,568
-- -- 240,550 481,559
-- -- (1,600,413) (5,715,659)
- -----------------------------------------------------------
-- -- 1,363,205 (384,532)
- -----------------------------------------------------------
-- -- -- --
-- -- -- --
-- -- -- --
- -----------------------------------------------------------
-- -- -- --
- -----------------------------------------------------------
$(1,978,449) $(3,967,851) $ 5,530,119 $(1,629,502)
- -----------------------------------------------------------
219,472 529,874 34,665,310 65,280,521
81,795 176,434 1,584,475 3,201,732
(505,982) (1,112,958) (32,082,871) (69,727,223)
- -----------------------------------------------------------
(204,715) (406,650) 4,166,914 (1,244,970)
- -----------------------------------------------------------
-- -- 2,723,068 4,849,568
-- -- 240,550 481,559
-- -- (1,600,413) (5,715,659)
- -----------------------------------------------------------
-- -- 1,363,205 (384,532)
- -----------------------------------------------------------
-- -- -- --
-- -- -- --
-- -- -- --
- -----------------------------------------------------------
-- -- -- --
- -----------------------------------------------------------
(204,715) (406,650) 5,530,119 (1,629,502)
- -----------------------------------------------------------
</Table>
SEE FINANCIAL NOTES
29
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SELECTED PER SHARE DATA INVESTMENT ACTIVITIES DIVIDENDS
- ------------------------------------------------------------------------------------------------------------------
Net asset Net realized
value, Net and unrealized Total from From net
beginning investment gains/losses investment investment
of period income/loss on investments operations income
- ------------------------------------------------------------------------------------------------------------------
CORE GROWTH FUND
STANDARD SHARES
- ------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $22.77 (0.07) 0.89 0.82 --
Year ended June 30, 2007 20.41 (0.02) 2.38 2.36 --
Year ended June 30, 2006 19.72 (0.09) 0.78 0.69 --
Year ended June 30, 2005 18.10 (0.06) 1.68 1.62 --
Year ended June 30, 2004 16.44 (0.12) 1.78 1.66 --
Year ended June 30, 2003 16.73 (0.04) (0.25) (0.29) --
INSTITUTIONAL SHARES
- ------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $19.15 0.02 0.74 0.76 --
Year ended June 30, 2007 17.15 0.12 2.00 2.12 (0.12)
Year ended June 30, 2006 16.45 0.06 0.64 0.70 --
Year ended June 30, 2005 14.99 0.07 1.39 1.46 --
Year ended June 30, 2004 13.52 0.01 1.46 1.47 --
Year ended June 30, 2003 13.66 0.05 (0.19) (0.14) --
ADMINISTRATIVE SHARES
- ------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $23.44 (0.01) 0.90 0.89 --
Year ended June 30, 2007 20.96 0.06 2.46 2.52 (0.04)
Year ended June 30, 2006 20.17 --(3) 0.79 0.79 --
Year ended June 30, 2005 18.44 0.02 1.71 1.73 --
Year ended June 30, 2004 16.68 (0.08) 1.84 1.76 --
Year ended June 30, 2003 16.91 0.01 (0.24) (0.23) --
- ------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH FUND
STANDARD SHARES
- ------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $18.58 (0.13) 0.12 (0.01) --
Year ended June 30, 2007 16.40 (0.12)(4) 2.30 2.18 --
Year ended June 30, 2006 14.10 (0.20)(4) 2.50 2.30 --
Year ended June 30, 2005 13.01 (0.18)(4) 1.27 1.09 --
Year ended June 30, 2004 10.96 (0.20) 2.25 2.05 --
Year ended June 30, 2003 11.82 (0.17) (0.69) (0.86) --
INSTITUTIONAL SHARES
- ------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $19.48 (0.09) 0.13 0.04 --
Year ended June 30, 2007 17.11 (0.05)(4) 2.42 2.37 --
Year ended June 30, 2006 14.62 (0.12)(4) 2.61 2.49 --
Year ended June 30, 2005 13.41 (0.10)(4) 1.31 1.21 --
Year ended June 30, 2004 11.23 (0.15) 2.33 2.18 --
Year ended June 30, 2003 12.02 (0.10) (0.69) (0.79) --
ADMINISTRATIVE SHARES
- ------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $19.06 (0.12) 0.14 0.02 --
Year ended June 30, 2007 16.77 (0.07)(4) 2.36 2.29 --
Year ended June 30, 2006 14.37 (0.16)(4) 2.56 2.40 --
Year ended June 30, 2005 13.22 (0.14)(4) 1.29 1.15 --
Year ended June 30, 2004 11.11 (0.14) 2.25 2.11 --
Year ended June 30, 2003 11.92 (0.10) (0.71) (0.81) --
- ------------------------------------------------------------------------------------------------------------------
(1) Not Annualized.
(2) Annualized.
(3) Less than $0.005 per share.
(4) Based on average shares outstanding.
</Table>
SEE FINANCIAL NOTES
30
<Table>
<Caption>
TO SHAREHOLDERS RATIOS AND SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net Ratio of
From Net asset assets, expenses to
net Total value, Total end of average net
realized dividends to Redemption end return period assets, net of
gains shareholders fee of period (%) ($ X 1,000) reimbursement (%)
- ----------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(0.23) (0.23) -- $23.36 3.60(1) $245,189 1.52(2)
-- -- -- 22.77 11.56 249,707 1.52
-- -- -- 20.41 3.50 268,593 1.52
-- -- -- 19.72 8.95 278,940 1.55
-- -- -- 18.10 10.10 290,352 1.50
-- -- -- 16.44 (1.73) 285,339 1.37
- ------------------------------------------------------------------------------------------------------------------------------------
(0.23) (0.23) -- $19.68 3.97(1) $ 64,151 0.80(2)
-- (0.12) -- 19.15 12.39 49,001 0.79
-- -- -- 17.15 4.26 44,836 0.80
-- -- -- 16.45 9.74 43,083 0.80
-- -- -- 14.99 10.96 52,842 0.77
-- -- -- 13.52 (1.02) 63,571 0.69
- ------------------------------------------------------------------------------------------------------------------------------------
(0.23) (0.23) -- $24.10 3.80(1) $ 1,955 1.09(2)
-- (0.04) -- 23.44 12.06 1,863 1.10
-- -- -- 20.96 3.92 1,659 1.12
-- -- -- 20.17 9.38 1,667 1.14
-- -- -- 18.44 10.55 1,635 1.11
-- -- -- 16.68 (1.36) 2,426 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- $18.57 (0.05)(1) $170,111 1.88(2)
-- -- -- 18.58 13.29 177,514 1.88
-- -- -- 16.40 16.31 170,704 1.90
-- -- -- 14.10 8.38 157,963 1.96
-- -- -- 13.01 18.70 165,782 1.93
-- -- -- 10.96 (7.28) 157,911 1.95
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- $19.52 0.21(1) $ 528 1.41(2)
-- -- -- 19.48 13.85 515 1.38
-- -- -- 17.11 17.03 899 1.35
-- -- -- 14.62 9.02 2,633 1.33
-- -- -- 13.41 19.41 3,534 1.30
-- -- -- 11.23 (6.57) 5,379 1.25
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- $19.08 0.10(1) $ 2,931 1.58(2)
-- -- -- 19.06 13.66 4,200 1.57
-- -- -- 16.77 16.70 5,071 1.60
-- -- -- 14.37 8.70 5,270 1.64
-- -- -- 13.22 18.99 11,584 1.60
-- -- -- 11.11 (6.80) 8,561 1.51
- ------------------------------------------------------------------------------------------------------------------------------------
<Caption>
RATIOS AND SUPPLEMENTAL DATA
- --- ----------------------------------------------
Ratio of net Ratio of
investment expenses to
income/loss average net Portfolio
to average net assets, prior to turnover
assets (%) reimbursement (%) rate (%)
- ---
(0.55)(2) 1.54(2) 16.73(1)
(0.08) 1.52 153.08
(0.43) 1.52 101.35
(0.32) 1.55 101.34
(0.65) 1.52 228.43
(0.28) 1.53 183.75
- ---
0.18(2) 0.80(2) 16.73(1)
0.62 0.79 153.08
0.30 0.80 101.35
0.42 0.80 101.34
0.08 0.79 228.43
0.36 0.76 183.75
- ---
(0.12)(2) 1.10(2) 16.73(1)
0.32 1.10 153.08
(0.02) 1.12 101.35
0.09 1.14 101.34
(0.27) 1.13 228.43
0.09 1.06 183.75
- ---
- ---
(1.40)(2) 1.90(2) 31.23(1)
(0.72) 1.88 47.54
(1.30) 1.90 60.19
(1.39) 1.96 109.56
(1.47) 1.94 151.80
(1.56) 1.97 315.89
- ---
(0.92)(2) 1.41(2) 31.23(1)
(0.29) 1.38 47.54
(0.77) 1.35 60.19
(0.76) 1.33 109.56
(0.85) 1.31 151.80
(0.86) 1.28 315.89
- ---
(1.10)(2) 1.59(2) 31.23(1)
(0.39) 1.57 47.54
(1.00) 1.60 60.19
(1.08) 1.64 109.56
(1.13) 1.62 151.80
(1.13) 1.54 315.89
- ---
</Table>
SEE FINANCIAL NOTES
31
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SELECTED PER SHARE DATA INVESTMENT ACTIVITIES DIVIDENDS
- --------------------------------------------------------------------------------------------------------------------------
Net realized
Net asset and unrealized
value, Net gains/losses Total from From net
beginning investment on investments investment investment
of period income/loss and foreign currencies operations income
- --------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE GROWTH FUND
STANDARD SHARES
- --------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $13.84 (0.06) 0.04 (0.02) --
Year ended June 30, 2007 12.48 (0.09) 1.82 1.73 --
Year ended June 30, 2006 11.00 (0.09) 1.57 1.48 --
Year ended June 30, 2005 10.84 (0.11) 0.77 0.66 --
Year ended June 30, 2004 8.67 (0.13) 2.30 2.17 --
Year ended June 30, 2003 9.18 (0.09) (0.42) (0.51) --
- --------------------------------------------------------------------------------------------------------------------------
VALUE FUND
STANDARD SHARES
- --------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $15.31 0.03 (0.34) (0.31) (0.04)
Year ended June 30, 2007 12.74 0.04 2.58 2.62 (0.05)
Year ended June 30, 2006 11.60 0.02 1.12 1.14 --
Year ended June 30, 2005 10.51 (0.01) 1.10 1.09 --
Year ended June 30, 2004 8.64 (0.02) 1.89 1.87 --
Year ended June 30, 2003 8.74 (0.05) (0.05) (0.10) --
INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $15.34 0.04 (0.33) (0.29) (0.09)
Year ended June 30, 2007 12.72 0.10 2.59 2.69 (0.07)
For the period ended June 30, 2006(4) 12.81 0.02 (0.11) (0.09) --
- --------------------------------------------------------------------------------------------------------------------------
GLOBAL EQUITY FUND
STANDARD SHARES
- --------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $21.43 (0.07)(1) 1.23 1.16 (0.01)
Year ended June 30, 2007 18.33 0.03(1) 3.07 3.10 --
Year ended June 30, 2006 15.86 (0.01)(1) 2.48 2.47 --
Year ended June 30, 2005 15.18 0.02(1) 0.66 0.68 --
Year ended June 30, 2004 13.39 (0.10)(1) 1.89 1.79 --
Year ended June 30, 2003 14.22 (0.03)(1) (0.82) (0.85) --
INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $22.42 (0.01)(1) 1.28 1.27 (0.13)
Year ended June 30, 2007 19.05 0.13(1) 3.24 3.37 --
Year ended June 30, 2006 16.39 0.07(1) 2.59 2.66 --
Year ended June 30, 2005 15.58 0.12(1) 0.69 0.81 --
Year ended June 30, 2004 13.65 0.04(1) 1.89 1.93 --
Year ended June 30, 2003 14.40 0.05(1) (0.82) (0.77) --
ADMINISTRATIVE SHARES
- --------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007 (Unaudited) $21.88 (0.04)(1) 1.25 1.21 (0.07)
Year ended June 30, 2007 18.66 0.06(1) 3.16 3.22 --
Year ended June 30, 2006 16.11 0.04(1) 2.51 2.55 --
Year ended June 30, 2005 15.36 0.06(1) 0.69 0.75 --
Year ended June 30, 2004 13.51 (0.02)(1) 1.87 1.85 --
Year ended June 30, 2003 14.30 0.01(1) (0.82) (0.81) --
- --------------------------------------------------------------------------------------------------------------------------
(1) Based on average shares outstanding.
(2) Not annualized.
(3) Annualized.
(4) For the period March 31, 2006, commencement of operations, to June 30, 2006.
(5) Less than $0.005 per share.
</Table>
SEE FINANCIAL NOTES
32
<Table>
<Caption>
TO SHAREHOLDERS RATIOS AND SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------
Net Ratio of Ratio of net
From Net asset assets, expenses to investment
net Total value, Total end of average net income/loss
realized dividends to Redemption end return period assets, net of to average net
gains shareholders fee (1) of period (%) ($ X 1,000) reimbursement (%) assets (%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
(1.12) (1.12) -- $12.70 (0.24)(2) $ 40,104 1.41(3) (0.95)(3)
(0.37) (0.37) -- 13.84 14.22 41,830 1.42 (0.67)
-- -- -- 12.48 13.45 37,910 1.44 (0.83)
(0.50) (0.50) -- 11.00 6.21 30,059 1.51 (1.07)
-- -- -- 10.84 25.03 29,701 1.53 (1.37)
-- -- -- 8.67 (5.56) 17,821 1.45 (1.12)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
-- (0.04) -- $14.96 (2.09)(2) $ 58,892 1.29(3) 0.32(3)
-- (0.05) -- 15.31 20.63 56,385 1.29 0.37
-- -- -- 12.74 9.83 33,081 1.29 0.15
-- -- -- 11.60 10.37 27,791 1.70 (0.11)
-- -- -- 10.51 21.64 23,871 1.78 (0.23)
-- -- -- 8.64 (1.14) 16,226 1.90 (0.62)
- ---------------------------------------------------------------------------------------------------------------------
-- (0.09) -- $14.96 (1.89)(2) $ 9,574 0.90(3) 0.72(3)
-- (0.07) -- 15.34 21.16 7,785 0.90 0.78
-- -- -- 12.72 (0.70)(2) 5,436 0.90(3) 0.64(3)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
-- (0.01) --(5) $22.58 5.41(2) $ 84,151 1.97(3) (0.62)(3)
-- -- --(5) 21.43 16.91 81,750 1.98 0.15
-- -- --(5) 18.33 15.57 79,441 2.01 (0.06)
-- -- --(5) 15.86 4.48 80,384 2.05 0.13
-- -- --(5) 15.18 13.37 95,625 2.01 (0.60)
-- -- 0.02 13.39 (5.84) 101,846 1.91 (0.26)
- ---------------------------------------------------------------------------------------------------------------------
-- (0.13) --(5) $23.56 5.68(2) $ 403 1.44(3) (0.09)(3)
-- -- --(5) 22.42 17.69 414 1.39 0.65
-- -- --(5) 19.05 16.23 733 1.40 0.38
-- -- --(5) 16.39 5.20 2,891 1.39 0.75
-- -- --(5) 15.58 14.14 5,244 1.37 0.25
-- -- 0.02 13.65 (5.21) 6,688 1.26 0.42
- ---------------------------------------------------------------------------------------------------------------------
-- (0.07) --(5) $23.02 5.54(2) $ 1,064 1.70(3) (0.34)(3)
-- -- --(5) 21.88 17.26 961 1.71 0.28
-- -- --(5) 18.66 15.83 1,385 1.73 0.20
-- -- --(5) 16.11 4.88 1,566 1.73 0.40
-- -- --(5) 15.36 13.69 2,142 1.71 (0.11)
-- -- 0.02 13.51 (5.52) 2,059 1.59 0.11
- ---------------------------------------------------------------------------------------------------------------------
<Caption>
RATIOS AND SUPPLEMENTAL DATA
- --- -----------------------------
Ratio of
expenses to
average net Portfolio
assets, prior to turnover
reimbursement (%) rate (%)
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
1.42(3) 40.43(2)
1.42 53.78
1.44 96.80
1.51 120.89
1.53 207.80
1.58 349.79
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
1.53(3) 28.16(2)
1.61 40.28
1.62 58.32
1.70 172.95
1.78 130.18
1.90 209.72
- ---------------------------------------------------------------------------------------------------------------------
1.09(3) 28.16(2)
1.14 40.28
1.26(3) 58.32(2)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
1.99(3) 21.13(2)
1.98 58.74
2.01 36.77
2.05 80.36
2.01 49.16
1.91 42.05
- ---------------------------------------------------------------------------------------------------------------------
1.44(3) 21.13(2)
1.39 58.74
1.40 36.77
1.39 80.36
1.37 49.16
1.26 42.05
- ---------------------------------------------------------------------------------------------------------------------
1.71(3) 21.13(2)
1.71 58.74
1.73 36.77
1.73 80.36
1.71 49.16
1.59 42.05
- ---------------------------------------------------------------------------------------------------------------------
</Table>
SEE FINANCIAL NOTES
33
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SELECTED PER SHARE DATA INVESTMENT ACTIVITIES DIVIDENDS
- ---------------------------------------------------------------------------------------------------------
Net asset Net realized
value, Net and unrealized Total from From net
beginning investment gains/losses investment investment
of period income/loss on investments operations income
- ---------------------------------------------------------------------------------------------------------
BALANCED FUND
STANDARD SHARES
- ---------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007
(Unaudited) $13.30 0.08 (0.14) (0.06) (0.08)
Year ended June 30, 2007 12.24 0.19 1.24 1.43 (0.19)
Year ended June 30, 2006 11.87 0.13 0.37 0.50 (0.13)
Year ended June 30, 2005 11.35 0.12 0.75 0.87 (0.12)
Year ended June 30, 2004 10.47 0.06 1.12 1.18 (0.06)
Period ended June 30, 2003(4) 10.00 0.02 0.47 0.49 (0.02)
- ---------------------------------------------------------------------------------------------------------
INCOME FUND
STANDARD SHARES
- ---------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007
(Unaudited) $ 9.57 0.19 0.31 0.50 (0.19)
Year ended June 30, 2007 9.51 0.39 0.05 0.44 (0.38)
Year ended June 30, 2006 10.00 0.32 (0.48) (0.16) (0.33)
Year ended June 30, 2005 9.86 0.37 0.15 0.52 (0.38)
Year ended June 30, 2004 10.28 0.34 (0.40) (0.06) (0.36)
Year ended June 30, 2003 9.62 0.37 0.69 1.06 (0.40)
- ---------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
STANDARD SHARES
- ---------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007
(Unaudited) $ 1.00 0.02 -- 0.02 (0.02)
Year ended June 30, 2007 1.00 0.04 -- 0.04 (0.04)
Year ended June 30, 2006 1.00 0.03 -- 0.03 (0.03)
Year ended June 30, 2005 1.00 0.01 -- 0.01 (0.01)
Year ended June 30, 2004 1.00 --(3) -- --(3) --(3)
Year ended June 30, 2003 1.00 0.01 -- 0.01 (0.01)
INSTITUTIONAL SHARES
- ---------------------------------------------------------------------------------------------------------
Six months ended December 31, 2007
(Unaudited) $ 1.00 0.02 -- 0.02 (0.02)
Year ended June 30, 2007 1.00 0.05 -- 0.05 (0.05)
Year ended June 30, 2006 1.00 0.04 -- 0.04 (0.04)
Year ended June 30, 2005 1.00 0.02 -- 0.02 (0.02)
Year ended June 30, 2004 1.00 --(3) -- --(3) --(3)
Year ended June 30, 2003 1.00 0.01 -- 0.01 (0.01)
- ---------------------------------------------------------------------------------------------------------
(1) Not Annualized.
(2) Annualized.
(3) Less than $0.005 per share.
(4) For the period December 20, 2002, commencement of operations, to June 30, 2003.
</Table>
SEE FINANCIAL NOTES
34
<Table>
<Caption>
TO SHAREHOLDERS RATIOS AND SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------
Net Ratio of Ratio of net
From Net asset assets, expenses to investment
net Total value, Total end of average net income/loss
realized dividends to Redemption end return period assets, net of to average net
gains shareholders fee of period (%) ($ x 1,000) reimbursement (%) assets (%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
(0.93) (1.01) -- $12.23 (0.52)(1) $ 12,389 1.30(2) 1.27(2)
(0.18) (0.37) -- 13.30 11.81 11,801 1.30 1.45
-- (0.13) -- 12.24 4.17 11,081 1.30 1.10
(0.23) (0.35) -- 11.87 7.76 5,491 1.30 1.07
(0.24) (0.30) -- 11.35 11.31 2,804 1.30 0.60
-- (0.02) -- 10.47 4.87(1) 1,061 1.30(2) 0.41(2)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
-- (0.19) -- $ 9.88 5.21(1) $ 46,238 1.52(2) 3.84(2)
-- (0.38) -- 9.57 4.60 46,765 1.48 3.97
-- (0.33) -- 9.51 (1.66) 50,321 1.49 3.28
-- (0.38) -- 10.00 5.34 56,597 1.48 3.66
-- (0.36) -- 9.86 (0.63) 59,562 1.45 3.28
-- (0.40) -- 10.28 11.28 69,137 1.37 3.80
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
-- (0.02) -- $ 1.00 2.21(1) $ 77,149 0.97(2) 4.27(2)
-- (0.04) -- 1.00 4.45 73,016 0.95 4.37
-- (0.03) -- 1.00 3.27 74,260 0.98 3.22
-- (0.01) -- 1.00 1.21 76,724 1.00 1.19
-- --(3) -- 1.00 0.10 83,231 0.98 0.10
-- (0.01) -- 1.00 0.65 104,641 0.93 0.65
- ---------------------------------------------------------------------------------------------------------------------
-- (0.02) -- $ 1.00 2.34(1) $ 10,875 0.70(2) 4.53(2)
-- (0.05) -- 1.00 4.72 9,516 0.69 4.63
-- (0.04) -- 1.00 3.57 9,901 0.69 3.48
-- (0.02) -- 1.00 1.53 12,763 0.68 1.55
-- --(3) -- 1.00 0.41 11,011 0.67 0.41
-- (0.01) -- 1.00 0.95 10,892 0.63 0.98
- ---------------------------------------------------------------------------------------------------------------------
<Caption>
TO RATIOS AND SUPPLEMENTAL DATA
- --- -----------------------------
Ratio of
expenses to
average net Portfolio
assets, prior to turnover
reimbursement (%) rate (%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
1.75(2) 24.73(1)
1.76 99.86
1.80 89.13
2.33 109.56
4.30 98.20
16.73(2) 140.42(1)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
1.53(2) 51.67(1)
1.48 225.80
1.49 490.92
1.48 111.76
1.45 64.37
1.37 195.73
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
0.97(2) N/A
0.95 N/A
0.98 N/A
1.00 N/A
0.98 N/A
0.93 N/A
- ---------------------------------------------------------------------------------------------------------------------
0.70(2) N/A
0.69 N/A
0.69 N/A
0.68 N/A
0.67 N/A
0.63 N/A
- ---------------------------------------------------------------------------------------------------------------------
</Table>
SEE FINANCIAL NOTES
35
FINANCIAL NOTES (UNAUDITED)
ORGANIZATION
Citizens Funds (the "trust"), a Massachusetts business trust, is registered as
an open-end management investment company under the Investment Company Act of
1940, as amended (the "1940 Act"). The trust offers the following funds
(individually a "fund," collectively the "funds"):
<Table>
<Caption>
FUND SHORT NAME
- ----------------------------------------------------------------------------------
CITIZENS CORE GROWTH FUND Core Growth Fund
CITIZENS EMERGING GROWTH FUND Emerging Growth Fund
CITIZENS SMALL CAP CORE GROWTH FUND Small Cap Core Growth Fund
CITIZENS VALUE FUND Value Fund
CITIZENS GLOBAL EQUITY FUND Global Equity Fund
CITIZENS BALANCED FUND Balanced Fund
CITIZENS INCOME FUND Income Fund
CITIZENS MONEY MARKET FUND Money Market Fund
- ----------------------------------------------------------------------------------
</Table>
The funds are authorized to issue an unlimited number of shares of beneficial
interest with no par value. The Core Growth Fund, Emerging Growth Fund, and
Global Equity Fund currently offer three classes of shares: Standard shares,
Institutional shares and Administrative shares. The Money Market Fund and Value
Fund offer two classes of shares: Standard shares and Institutional shares. The
Small Cap Core Growth Fund, Balanced Fund, and Income Fund offer one class of
shares: Standard shares. Each class of shares in the funds has identical rights
and privileges except with respect to fees paid under class-specific agreements,
voting rights on matters affecting a single class of shares, and the exchange
privilege of each class of shares.
INDEMNIFICATIONS
Under the funds' organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the trust. In addition, in the normal course of business, the funds
enter into contracts with their vendors and others that provide for general
indemnifications. The funds' maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the funds.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
funds in the preparation of their financial statements. The policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements requires management to
make estimates and assumptions
36
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses for the period. Actual results could
differ from those estimates.
SECURITIES VALUATION
The board of trustees has approved procedures to be used to value each fund's
securities for the purpose of determining the fund's net asset value (NAV).
Equity securities traded on an exchange are valued at the market price
determined as the closing sale or official closing price on that exchange. For
securities not traded on an exchange, or if an exchange price is not readily
available, securities are valued at a market price determined by independent
third-party pricing vendors approved by the funds' valuation committee. The
market price for debt obligations is determined by an independent third-party
pricing service which uses a matrix, formula or other objective method that
considers the effect of market indices, yield curves and other specific
adjustments. Short-term securities maturing within 60 days and all securities in
the Money Market Fund are valued at amortized cost, unless it is determined that
using this method would not reflect a security's fair value. Under the amortized
cost method, premium or discount, if any, is amortized or accreted,
respectively, on a constant basis to the maturity of the security. If a price
for a given security is unavailable or deemed unreliable by the adviser, the
market price may be determined using quotations received from one or more
brokers that make a market in the security. When such prices or quotations are
not available, or when the adviser believes they are unreliable, the funds'
valuation committee will value securities using fair value procedures approved
by the funds' board of trustees. Fair value procedures may also be used if the
adviser determines that a significant event has occurred between the time at
which a market price is determined and the time at which a fund's NAV is
calculated. The Global Equity Fund uses a fair value model developed by an
independent third-party pricing service in its valuation consideration for
foreign equity securities on days when there is a specific percentage change in
the value of a domestic equity security index. This percentage is determined by
the funds' valuation committee.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
During the period, security transactions were accounted for no later than one
business day following the trade date. For financial reporting purposes,
however, security transactions are accounted for on trade date.
37
FINANCIAL NOTES (UNAUDITED)
The cost of securities sold is determined on the identified cost basis, unless
otherwise specified. Interest income is recorded on an accrual basis and
includes, where applicable, the amortization or accretion of a premium or
discount. Dividend income is recorded on the ex-dividend date.
FOREIGN CURRENCY TRANSLATION
The accounting records of the funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are translated into U.S. dollars at the current rate of exchange. Purchases and
sales of securities, and income and expenses, are translated into U.S. dollars
at the prevailing rate of exchange on the respective dates of such transactions.
The changes in foreign exchange rates on investments are not isolated on the
Statement of Operations. Such fluctuations are included with the net realized
and unrealized gain or loss on investments.
FOREIGN CURRENCY CONTRACTS
Foreign currency contracts are used to facilitate transactions in foreign-
denominated securities. Losses may arise from changes in the value of the
foreign currency or if the counterparties do not perform under the contract's
terms. The U.S. dollar value of foreign currency contracts is determined using
the current rate of exchange. There were no foreign currency contracts open at
December 31, 2007.
REPURCHASE AGREEMENTS
The funds may acquire repurchase agreements with an entity that is a member bank
of the Federal Reserve System and government securities dealers that are on the
Federal Reserve Bank of New York's list of primary dealers, collateralized by
instruments issued by the U.S. government, its agencies or instrumentalities.
The repurchase price generally equals the price paid by a fund plus interest
negotiated on the basis of current short-term rates, which may be more or less
than the rate on the underlying securities. It is the funds' policy to receive
collateral securities of which the value, including accrued interest, is at
least equal to 102% of the amount to be repaid to the funds under each agreement
at its maturity. Collateral subject to repurchase agreements is held by the
funds' custodian. If the counterparty defaults, and the fair value of the
collateral declines, realization of the collateral by the funds may be delayed
or limited.
38
RESTRICTED SECURITIES
The funds are permitted to invest in privately placed securities. These
securities may be resold in transactions exempt from registration, or to the
public, if the securities are registered under the Securities Act of 1933.
Disposal of these securities may involve time-consuming negotiations and
expense, and the prompt sale at an acceptable price may be difficult.
REDEMPTION FEE
The Global Equity Fund charges a redemption fee of 2% (paid to the fund) with
respect to shares of the fund redeemed or exchanged within 60 days of purchase.
The fee does not apply to shares purchased through the reinvestment of dividends
or other distributions, redemptions by the fund of accounts with below minimum
balances, redemptions due to shareholder death or disability, or certain omnibus
accounts or retirement plans. For the period ended December 31, 2007 and the
year ended June 30, 2007, the Global Equity Fund collected $2,725 and $1,940
respectively, in redemption fees. These fees are included in the "change in net
assets from capital transactions" amounts in the Statements of Changes in Net
Assets.
DIVIDENDS TO SHAREHOLDERS
The Core Growth Fund, Emerging Growth Fund, Small Cap Core Growth Fund, Value
Fund, and Global Equity Fund declare and distribute dividends from net
investment income, if any, to shareholders annually. The Balanced Fund declares
and distributes dividends from net investment income to shareholders quarterly.
The Income Fund declares and distributes dividends from net investment income to
shareholders monthly. Dividends from net investment income for the Money Market
Fund are declared daily and paid monthly. The funds' net realized gains, if any,
are distributed to shareholders at least annually.
Additional dividends may also be paid to the funds' shareholders to the extent
necessary to avoid federal excise tax on certain undistributed income and net
realized gains. The amount of dividends from net investment income and net
realized gains are determined in accordance with federal income tax regulations,
which may differ from GAAP. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature (i.e., reclassification of market discounts, gain/loss, paydowns, and
39
FINANCIAL NOTES (UNAUDITED)
distributions), such amounts are reclassified to capital; temporary differences
do not require reclassification.
FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT MANAGEMENT FEE
Citizens Advisers, Inc. (the "adviser") serves as adviser to each of the funds.
Under the terms of the management contract, the adviser is paid a fee that is
computed daily based on an annual rate for each fund's average daily net assets.
Those rates are as follows:
<Table>
<Caption>
FUND FEE RATE
- ------------------------------------------------------
Core Growth Fund 0.50%
Emerging Growth Fund 1.00%
Small Cap Core Growth Fund 0.50%
Value Fund 0.70%
Global Equity Fund 1.00%
Balanced Fund 0.65%
Income Fund 0.65%
Money Market Fund 0.35%
- ------------------------------------------------------
</Table>
Dwight Asset Management Company (the "subadviser") serves as the subadviser for
the Income Fund. For its services, the subadviser receives a fee computed daily
based on an annual rate of 0.25% of the fund's average daily net assets. The fee
is paid by the adviser.
DISTRIBUTION FEE
Citizens Securities, Inc. (the "distributor") is a wholly owned subsidiary of
the adviser and serves as the funds' distributor. Pursuant to Rule 12b-1 under
the 1940 Act, the trust's shareholders have adopted a separate distribution plan
with respect to the funds' Standard and Administrative shares pursuant to which
the funds, except the Money Market Fund, compensate the distributor for services
in an amount equal to 0.25% per annum of average annual net assets represented
by such shares.
ADMINISTRATIVE AND SHAREHOLDER SERVICE FEES
The adviser, with whom certain officers and a trustee are affiliated, performs
administrative duties for the trust under a separate administrative contract,
which provides for the reimbursement of out-of-pocket expenses as well as fees
for services rendered. In accordance with the terms of the administrative
contract, fees are accrued daily based on average daily net assets of each fund
at the annual rate of 0.15%. In
40
addition, Citizens Advisers provides a number of administrative services to the
trust, relating primarily to shareholder services and communications, and is
paid an account fee and is reimbursed for out-of-pocket expenses as well, for
providing such services and communications for each of the individual funds with
the exception of the Core Growth Fund, Standard shares. The Core Growth Fund,
Standard shares may be charged a shareholder service fee of up to 0.35% based on
the average daily net assets of the class. For the period ended December 31,
2007, a fee of 0.25% was charged.
TRANSFER AGENCY, FUND ACCOUNTING AND CUSTODY
Citi Fund Services Ohio, Inc. ("Citi") (formerly BISYS Fund Services Ohio, Inc.)
provides transfer agency and fund accounting services to the funds pursuant to
certain fee arrangements. As transfer agent for the funds, Citi is paid a fee
based on the number of funds and shareholder accounts, other service fees, and
is reimbursed for out-of-pocket expenses as well. Transfer agent expenses also
include the cost of services rendered by third parties to provide sub-transfer
agency services. As fund accountant for the funds, Citi is paid a fee based on
assets (ranging from 0.0125% -- 0.035%) and the number of share classes per
fund, subject to certain minimums, other service fees, and is reimbursed for
out-of-pocket expenses as well. Fifth Third Bank acts as a custodian for the
funds and is paid a fee based on the funds' assets and other transaction based
fees, subject to certain minimums. Custody expenses may be incurred or offset
from fees or credits arising from cash balances maintained on deposit. There
were no custody credits received for the period ended December 31, 2007.
TRUSTEE FEES
All of the officers and one of the trustees of the trust are "interested
persons," as defined in the 1940 Act, of the adviser. Currently, each trustee
who is not an "interested person" receives an annual retainer of $12,000 and
$1,250 for each day's attendance at a trustee meeting. The independent trustees
include a chair of the board, who receives an additional annual retainer of
$5,000; and an audit committee chair, social responsibility committee chair, and
nominating committee chair who each receive an additional annual retainer of
$2,500.
ALLOCATIONS
Expenses directly attributable to a fund are charged to that fund. Expenses not
directly attributable to a fund are allocated proportionately
41
FINANCIAL NOTES (UNAUDITED)
among various or all funds within the trust in relation to the net assets of
each fund or on another reasonable basis. Expenses specific to a class of shares
are charged to that class. Expenses not directly attributable to a class are
allocated among the classes of a fund in relation to the net assets of the
classes or on another reasonable basis.
FEE REDUCTIONS AND REIMBURSEMENTS
For the period ended December 31, 2007, the adviser limited the total expenses,
exclusive of taxes, brokerage commissions and extraordinary expenses, for
certain funds to the extent they exceeded the following limits:
<Table>
<Caption>
FUND EXPENSE LIMITATION
- ------------------------------------------------------------
Value Fund -- Standard Class 1.29%
Value Fund -- Institutional Class 0.90%
Balanced Fund -- Standard Class 1.30%
- ------------------------------------------------------------
</Table>
Expense limitations for the Value Fund Standard shares and Institutional shares
listed above are contractual. The adviser may recoup the investment management
fees waived or limited and other expenses reimbursed by it within three years
from the fiscal year in which they were waived/reimbursed. Such repayments may
be made twice monthly, but in no event less frequently than semi-annually, but
only to the extent that such repayments would not cause annualized operating
expenses of the Value Fund to exceed any expense limitation. As of December 31,
2007, the amount that may be potentially be recouped by the adviser from the
Value Fund is $44,181 expiring on June 30, 2009 and $154,113 expiring on June
30, 2010 and $73,994 expiring on June 30, 2011.
The Balanced Fund expense limitation listed above is voluntary and may be
reduced or terminated by the adviser at any time and is not subject to
recoupment in subsequent fiscal periods.
As of November 12, 2007, the distributor agreed to voluntarily reduce the
distribution fee by 0.05% with respect to the funds' Standard and Administrative
shares, except such shares of the Money Market Fund which do not pay a
distribution fee. These voluntary waivers may be reduced or terminated by the
distributor at any time.
42
INVESTMENT TRANSACTIONS
The following summarizes purchases and sales of investment securities other than
short-term investments and U.S. Government securities, by fund for the period
ended December 31, 2007:
<Table>
<Caption>
FUND PURCHASES SALES
- --------------------------------------------------------------------------
Core Growth Fund $51,633,574 $50,272,165
Emerging Growth Fund 54,175,078 73,275,192
Small Cap Core Growth Fund 15,962,667 17,121,193
Value Fund 24,219,422 18,286,967
Global Equity Fund 16,980,493 21,137,955
Balanced Fund 3,121,368 2,897,434
Income Fund 7,517,526 4,287,431
- --------------------------------------------------------------------------
</Table>
The following summarizes purchases and sales of U.S. Government securities by
fund for the period ended December 31, 2007:
<Table>
<Caption>
FUND PURCHASES SALES
- --------------------------------------------------------------------------
Balanced Fund $ 205,938 $ --
Income Fund 15,991,955 20,084,629
- --------------------------------------------------------------------------
</Table>
FEDERAL INCOME TAX INFORMATION
Each fund is a separate taxable entity for federal tax purposes. Each fund has
qualified and intends to qualify each year as a "regulated investment company"
under Subchapter M of the Internal Revenue Code, as amended, and distributes
substantially all of its taxable net investment income and net realized gains,
if any, to its shareholders.
At December 31, 2007 the cost, gross unrealized appreciation and gross
unrealized depreciation on securities, for federal income tax purposes, were as
follows:
<Table>
<Caption>
NET UNREALIZED
TAX UNREALIZED TAX UNREALIZED APPRECIATION/
FUND TAX COST APPRECIATION DEPRECIATION DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------------
Core Growth Fund $277,007,282 $51,644,471 $(16,465,725) $35,178,746
Emerging Growth Fund 135,194,825 46,352,540 (7,148,160) 39,204,380
Small Cap Core Growth Fund 31,946,769 9,657,351 (1,432,858) 8,224,493
Value Fund 59,164,926 12,323,098 (3,023,739) 9,299,359
Global Equity Fund 66,384,060 21,034,790 (1,502,910) 19,531,880
Balanced Fund 11,807,145 1,127,855 (552,672) 575,183
Income Fund 45,279,681 916,460 (148,174) 768,286
Money Market Fund 86,178,274 -- -- --
- ---------------------------------------------------------------------------------------------------------------------
</Table>
43
FINANCIAL NOTES (UNAUDITED)
SUBSEQUENT EVENTS
In February 2008, the fund accounting agent to Citizens Money Market Fund
advised the fund's management company that, due to an error on the part of the
fund accounting agent, an over-distribution of income occurred during the period
of July 2007 through February 2008. The fund accounting agent has estimated that
the amount of the over-distribution was immaterial to the fund's financial
statements as of December 31, 2007.
The adviser has signed an asset purchase agreement with Sentinel Asset
Management, Inc. relating to a proposed acquisition by Sentinel of the assets
related to the adviser's mutual fund advisory business. In connection with such
acquisition, it is proposed that each of the Citizens funds reorganize into a
new or existing Sentinel fund. Each such reorganization of a Citizens fund is
subject to the approval of the shareholders of such fund, and a proxy
statement/prospectus seeking such approval was distributed to shareholders on or
about January 14, 2008.
NEW ACCOUNTING PRONOUNCEMENTS
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current GAAP from the application of this Statement relate to the
definition of fair value, the methods used to measure fair value, and expanded
disclosures about fair value measurements. As of December 31, 2007, the funds do
not believe the adoption of SFAS No. 157 will significantly impact the financial
statement amounts, however; additional disclosures may be required about the
inputs used to develop the measurements and the effect of certain of the
measurements on changes in net assets for the period.
In July 2006, FASB issued FASB Interpretation No. 48 (FIN 48), "Accounting for
Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109." FIN
48 clarifies the accounting for uncertainty in income taxes recognized in
accordance with FASB Statement No. 109,
44
"Accounting for Income Taxes." This interpretation prescribes a recognition
threshold and measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return. It
also provides guidance on de-recognition, classification, interest and
penalties, accounting in interim periods, disclosure and transition. FIN 48 is
effective on the last business day of the first required financial reporting
period for fiscal years beginning after December 15, 2006. Management has
concluded that as of December 31, 2007, there are no uncertain tax positions
that would require financial statement recognition, de-recognition, or
disclosure. Each of the fund's federal tax returns filed in the 3-year period
ended December 31, 2007 remains subject to examination by the Internal Revenue
Service.
45
SUPPLEMENTAL INFORMATION (UNAUDITED)
FEDERAL TAX INFORMATION
PORTFOLIO HOLDINGS DISCLOSURE
Each fund, except the Money Market Fund, posts its full portfolio holdings
monthly, with a 30-day lag, on www.citizensfunds.com. The portfolio holdings are
posted within approximately five business days after month end. The funds'
portfolio holdings will remain available until the following month's information
is posted.
In addition, each fund's, except the Money Market Fund's, top ten portfolio
holdings in order of position size and as a percentage of the total portfolio as
well as sector breakdowns and portfolio characteristics are available quarterly,
within approximately fifteen business days after quarter end on
www.citizensfunds.com. Each fund's top ten portfolio holdings, sector breakdown
and portfolio characteristics remain available until the following quarter's
information is posted.
Details of the funds' portfolio holdings disclosure policies and procedures,
including a discussion of any exceptions, are contained in the funds' SAI.
Each fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year within 60 days of such quarters'
end on Form N-Q. You can receive a copy of the fund's Form N-Q without charge by
calling 800.223.7010 or by visiting the website at www.citizensfunds.com. Each
fund's Form N-Q is also available through a variety of methods. You can:
- -- find it on the EDGAR Database of the SEC internet site at www.sec.gov
- -- have copies sent to you (after paying a copying fee) by writing the SEC's
Public Reference Section, Washington, D.C. 20549-0102, or by electronic
request to publicinfo@sec.gov
- -- view and copy it in person at the SEC's Public Reference Room in Washington
D.C.; for more information call 202.942.8090.
46
SUPPLEMENTAL INFORMATION (UNAUDITED)
TABLE OF SHAREHOLDER EXPENSES
As a shareholder of the funds, you may incur two types of costs: (1) redemption
fees (for Global Equity Fund only) and (2) ongoing costs, including management
fees; distribution 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 from July 1, 2007 through December 31,
2007.
ACTUAL EXPENSES
The table on the page opposite provides information about actual account values
and actual expenses. You may use the information below, 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 table
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 table on the page opposite also provides information about hypothetical
account values and hypothetical expenses based on each fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
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
redemption fees and other indivdual shareholder fees mentioned in the
prospectus. Therefore, the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
*Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by 184/366 (to reflect the one-half year period).
47
<Table>
<Caption>
DECEMBER 31, 2007
- -------------------------------------------------------------------------------------------------------------------------
BEGINNING ENDING ANNUALIZED
ACCOUNT ACCOUNT EXPENSES PAID EXPENSE RATIO
VALUE VALUE DURING PERIOD(1) DURING THE PERIOD
07/01/07 12/31/07 07/01/07-12/31/07 07/01/07-12/31/07
- -------------------------------------------------------------------------------------------------------------------------
CORE GROWTH FUND
Standard -- actual $1,000.00 $1,036.00 $ 7.78 1.52%
Standard -- hypothetical 1,000.00 1,017.50 7.71 1.52%
Institutional -- actual 1,000.00 1,039.70 4.10 0.80%
Institutional -- hypothetical 1,000.00 1,021.11 4.06 0.80%
Administrative -- actual 1,000.00 1,038.00 5.58 1.09%
Administrative -- hypothetical 1,000.00 1,019.66 5.53 1.09%
- -------------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH FUND
Standard -- actual $1,000.00 $ 999.50 $ 9.45 1.88%
Standard -- hypothetical 1,000.00 1,015.69 9.53 1.88%
Institutional -- actual 1,000.00 1,002.10 7.10 1.41%
Institutional -- hypothetical 1,000.00 1,018.05 7.15 1.41%
Administrative -- actual 1,000.00 1,001.00 7.95 1.58%
Administrative -- hypothetical 1,000.00 1,017.19 8.01 1.58%
- -------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE GROWTH FUND
Standard -- actual $1,000.00 $ 997.60 $ 7.08 1.41%
Standard -- hypothetical 1,000.00 1,018.05 7.15 1.41%
- -------------------------------------------------------------------------------------------------------------------------
VALUE FUND
Standard -- actual $1,000.00 $ 979.10 $ 6.42 1.29%
Standard -- hypothetical 1,000.00 1,018.65 6.55 1.29%
Institutional -- actual 1,000.00 981.10 4.48 0.90%
Institutional -- hypothetical 1,000.00 1,020.61 4.57 0.90%
- -------------------------------------------------------------------------------------------------------------------------
GLOBAL EQUITY FUND
Standard -- actual $1,000.00 $1,054.10 $10.17 1.97%
Standard -- hypothetical 1,000.00 1,015.23 9.98 1.97%
Institutional -- actual 1,000.00 1,056.80 7.44 1.44%
Institutional -- hypothetical 1,000.00 1,017.90 7.30 1.44%
Administrative -- actual 1,000.00 1,055.40 8.78 1.70%
Administrative -- hypothetical 1,000.00 1,016.59 8.62 1.70%
- -------------------------------------------------------------------------------------------------------------------------
BALANCED FUND
Standard -- actual $1,000.00 $ 994.80 $ 6.52 1.30%
Standard -- hypothetical 1,000.00 1,018.60 6.60 1.30%
- -------------------------------------------------------------------------------------------------------------------------
INCOME FUND
Standard -- actual $1,000.00 $1,052.10 $ 7.84 1.52%
Standard -- hypothetical 1,000.00 1,017.50 7.71 1.52%
- -------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
Standard -- actual $1,000.00 $1,022.10 $ 4.93 0.97%
Standard -- hypothetical 1,000.00 1,020.26 4.93 0.97%
Institutional -- actual 1,000.00 1,023.40 3.56 0.70%
Institutional -- hypothetical 1,000.00 1,021.62 3.56 0.70%
- -------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Expenses equal the average account value times the fund's annualized expense
ratio multiplied by 184/366 (to reflect the one-half year period).
48
NOTES
NOTES
NOTES
NOTES
[CITIZENS FUNDS LOGO]
TRUSTEES CUSTODIAN
Walter D. Bristol, Jr. Fifth Third Bank
Sophia Collier Cincinnati, OH 45263
Jeannie H. Diefenderfer
Pablo S. Eisenberg TRANSFER AND ACCOUNTING AGENT
Orlando Hernandez Citi Fund Services Ohio, Inc.
Martha S. Pope Columbus, OH 43219
Henry L.P. Schmelzer
LEGAL COUNSEL
MANAGER Bingham McCutchen LLP
Citizens Advisers, Inc. Boston, MA 02110
One Harbour Place
Suite 400 INDEPENDENT REGISTERED PUBLIC
Portsmouth, NH 03801 ACCOUNTING FIRM
800.223.7010 PricewaterhouseCoopers LLP
603.436.5152 Columbus, OH 43215
DISTRIBUTOR
Citizens Securities, Inc.
One Harbour Place
Suite 400
Portsmouth, NH 03801
800.223.7010
603.436.5152
Citizens Funds are distributed by Citizens Securities, Inc., Portsmouth, NH
03801 and are available through such popular mutual fund supermarkets as Charles
Schwab's Mutual Fund OneSource(R) and Fidelity Investments' FundsNetwork(R).
Citizens Funds(R) is a trademark of Citizens Advisers, Inc.
This report is intended for shareholders of Citizens Funds and is not authorized
for distribution to other persons unless accompanied or preceded by a
prospectus.
PLEASE CONSIDER THE INVESTMENT OBJECTIVES ,RISKS , CHARGES AND EXPENSES OF
CITIZENS FUNDS CAREFULLY BEFORE INVESTING . FOR THIS AND OTHER INFORMATION,
PLEASE VISIT WWW. CITIZENSFUNDS.COM OR CALL 800.223.7010 FOR A FREE
PROSPECTUS AND READ IT CAREFULLY BEFORE INVESTING.
(c) 2008 CITIZENS ADVISERS, INC.
ITEM 2. CODE OF ETHICS.
Not Applicable to Semi-Annual Report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not Applicable to Semi-Annual Report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not Applicable to Semi-Annual Report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
A schedule of investments for each series of the registrant is included as part
of the report to shareholders of such series under Item 1 of this Form N-CSR.
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
COMPANY 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 registrant's disclosure
controls and procedures as conducted within 90 days of the filing date of this
report, that these disclosure controls and procedures are adequately designed
and are operating effectively to ensure that information required to be
disclosed by the registrant is (i) accumulated and communicated to the
investment company's management, including its certifying officers to allow
timely decision regarding required disclosure, and (ii) recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial
reporting 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)(1) Not Applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.
(a)(3) Not Applicable.
(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.
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.
Citizens Funds
By: /s/ Sophia Collier
-----------------------
Sophia Collier
President
Date: 2/25/08
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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/ Sophia Collier
-----------------------
Sophia Collier
President
Date: 2/25/08
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By: /s/ Trudance L.C. Bakke
-----------------------
Trudance L.C. Bakke
Treasurer
Date: 2/25/08
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