As filed with the Securities and Exchange Commission on June 30, 2003
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File No. 811-08261
MEMBERS Mutual Funds
5910 Mineral Point Road
Madison, WI 53705
(608) 238-5851
(Registrant's Exact Name, Address and Telephone Number)
Margaret Gallardo-Cortez, Esq.
Assistant Vice President, Associate General Counsel
CUNA Mutual Group
5910 Mineral Point Road
Madison, WI 53705
(Name and Address of Agent for Service)
Copy to:
Stephen E. Roth, Esq.
Sutherland Asbill & Brennan LLP
1275 Pennsylvania Avenue, N.W.
Washington, D. C. 20004-2415
------------------------------------
Date of Fiscal Year End: October 31, 2002
Date of Reporting Period: April 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS
A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under
the Investment Company Act of 1940 on June 30, 2003 appears beginning on the
following page.
SEMIANNUAL REPORT
APRIL 30, 2003
INVEST WHERE YOU
BELONG
[MEMBERS LOGO]
MUTUAL FUNDS
THE MEMBERS(R) MUTUAL FUNDS DIFFERENCE
Today's financial world suffers no shortage of mutual funds, and they're all
vying for your attention. Some fund companies tout their long history or
well-known name. Others tantalize with the latest investment trends and the
hottest sticks. So where should an investor turn? Who should you trust with your
financial future?
We suggest MEMBERS Mutual Funds, a diverse family of mutual funds with an
important distinction: It is designed by financial management professionals
located at credit unions across the nation, specifically for credit union
members. The funds are distributed by CUNA Brokerage Services, Inc., and are
managed by MEMBERS Capital Advisors, the registered investment advisor affiliate
of CUNA Mutual Group, a family of companies owned by and dedicated to America's
credit unions and their members. Currently, MEMBERS Capital Advisors manages
nearly $10 billion in investments for credit union members, employees and the
credit union system.
Just as credit unions are different from banks, the MEMBERS Mutual Funds family
is unlike the typical fund family. We share many of the philosophies you've come
to appreciate in the credit union movement: we focus on providing good value,
superior service and investor education. We avoid slick hype and silly fads. Our
staff of investment management professionals is straightforward and highly
experienced in the investment field. Here you'll be treated like a valued
member, with a company where you can feel like you truly belong.
TABLE OF CONTENTS
PAGE
----
FUND PERFORMANCE REVIEWS
Bond Fund .................................................................................... 2
High Income Fund ............................................................................. 4
Balanced Fund ................................................................................ 6
Growth and Income Fund........................................................................ 8
Capital Appreciation Fund..................................................................... 10
Mid-Cap Fund ................................................................................. 12
Multi-Cap Growth Fund......................................................................... 14
International Stock Fund ..................................................................... 16
PORTFOLIOS OF INVESTMENTS
Cash Reserves Fund............................................................................ 18
Bond Fund .................................................................................... 19
High Income Fund ............................................................................. 22
Balanced Fund ................................................................................ 29
Growth and Income Fund ...................................................................... 33
Capital Appreciation Fund..................................................................... 34
Mid-Cap Fund ................................................................................. 35
Multi-Cap Growth Fund ...................................................................... 37
International Stock Fund ..................................................................... 39
FINANCIAL STATEMENTS
Statements of Assets and Liabilities ......................................................... 44
Statements of Operations...................................................................... 46
Statements of Changes in Net Assets ......................................................... 48
Financial Highlights.......................................................................... 52
NOTES TO FINANCIAL STATEMENTS ........................................................................ 61
TRUSTEES AND OFFICERS................................................................................. 67
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
2 FUND PERFORMANCE REVIEW
Bond Fund
INVESTMENT OBJECTIVE
The Bond Fund seeks to generate a high level of current income, consistent with
the prudent limitation of risk.
PORTFOLIO MANAGEMENT
The Fund is managed by a team of MEMBERS Capital Advisors' portfolio managers.
PRIMARY INVESTMENT STRATEGIES
To keep current income relatively stable and to limit share price volatility,
the Bond Fund emphasizes investment grade securities and maintains an
intermediate (typically 3 to 6 years) average portfolio duration. Under normal
circumstances, the Fund invests at least 80% of its assets in such securities.
The Fund may employ active trading and typically invests in the following
instruments:
- - Corporate Debt Securities
- - U.S. Government Debt Securities
- - Foreign Government Debt Securities
- - Other Issuer Debt Securities.
The Fund may also invest in asset-backed and mortgage-backed securities,
including securities backed by credit union originated loans, to the extent
permitted by law and available in the market.
For a listing of the securities held in the portfolio at April 30, 2003, please
turn to page 19.
Economic growth in the six-month period ended April 30, 2003, was restrained as
many companies awaited, among other things, the resolution of geopolitical
tensions before considering investing in new plant and equipment or hiring new
workers. A weakening labor market contributed to modestly slowed consumer
spending. High energy prices, caused largely by low U.S. oil inventories and
disturbances in Nigeria, Venezuela, and the Middle East, also played a role in
damping the economic activity of businesses and consumers. The rise in energy
prices led to an up-tick in inflation, though not to troubling levels. The
housing market and residential construction remained the bulwark of the U.S.
economy, thanks to low interest rates.
On November 6, 2002, the U.S. Federal Reserve cut its benchmark federal funds
rate from 1.75% to 1.25% in order to stimulate the sluggish U.S. economy. U.S.
Treasury bonds responded positively, with prices rising and yields falling
throughout most of the yield curve. Yields fell most at the extremes of the
curve, with the 90-Day U.S. Treasury Bill yield falling from 1.44% to 1.11% for
the period, and the 30-Year U.S. Treasury Bond yield falling from 4.99% to
4.77%. Price gains were more restrained for intermediate-term U.S. Treasurys,
and the 5-Year U.S. Treasury note actually saw its price decline slightly. U.S.
corporate bonds performed well during the period, as investors took note of
improvements in companies' balance sheets and profits. In general, it was a good
six months for investment-grade bonds.
The MEMBERS Bond Fund returned 3.85% during the six-month period ended April 30,
2003 (Class A shares at net asset value), modestly under-performing a
representative index of diversified investment-grade bonds, the Lehman Brothers
Intermediate Government/Credit Bond Index, which returned 4.41%, and also
underperforming a representative index of similar funds, the Lipper Intermediate
Investment Grade Bond Fund Index, which returned 5.54%. The difference versus
the Lehman Brothers Index is explained by the expenses charged by the Fund, and
by the Fund's higher-than-index weighting in mortgage-backed bonds, which
under-performed during the period primarily due to the greater than expected
wave of home-loan refinancings that followed the Fed's November rate cut. The
Fund's under-performance versus the Lipper Index of peer funds also reflects its
relative overweight in mortgage-backed bonds, as well as the shorter duration of
its corporate bond portfolio versus peers, since longer-duration corporate bonds
generally out-performed shorter-duration corporates for the period.
Consensus expectations among economists are for low levels of inflation in the
near-term, and the U.S. Federal Reserve has indicated that it will be reluctant
to raise short-term interest rates until the U.S. economy is well into a
sustainable recovery. Further monetary easing is possible in 2003 if the economy
continues to show weakness, or if deflationary pressures appear to be building.
This would keep short-term interest rates relatively steady, while intermediate-
and long-term rates could remain in a trading range for some time. Considering
the low inflation rate, this should be a favorable environment for the real
returns of fixed-income investments, although many observers believe that the
current rally in bond prices is in its later stages, and note that bonds have
out-performed stocks for three consecutive years, an unusual phenomenon.
The Fund continues to hold a diversified portfolio of fixed income securities
that is designed with the intention to perform well in varying economic
circumstances. Management's focus on high-quality issues should help the Fund to
defend if U.S. economic performance disappoints. Management is keeping the
duration (sensitivity to changes in interest rates) of the Fund's portfolio
relatively short, however, in an effort to moderate declines in the Fund's net
asset value if economic growth accelerates and interest rates rise.
MEMBERS Capital Advisors' Fixed-Income
Portfolio Management Team -- Advisor
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FUND PERFORMANCE REVIEW 3
Bond Fund
BOND FUND CUMULATIVE PERFORMANCE OF $10,000 SINCE INCEPTION(delta)
<Table>
<Caption>
12/29/97
Inception 4/30/98 10/31/98 4/30/99 10/31/99 4/30/00 10/31/00 4/30/01 10/31/01 04/30/02 10/31/02 4/30/03
MMF Bond A 9,525 9,654 10,104 10,252 10,266 10,372 10,768 11,338 12,175 12,095 12,688 13,174
MMF Bond B 10,000 9,667 10,086 10,195 10,235 10,372 10,721 11,418 12,225 12,286 12,852 13,184
Lehm int/Gov Credit IX 10,000 10,226 10,820 10,650 10,927 11,042 11,631 12,382 13,289 13,269 14,074 14,703
</Table>
[PERFORMANCE GRAPH]
(delta) This chart compares a $10,000 investment made in the Fund on its
inception date to a $10,000 investment made in the index on that date. All
dividends and capital gains are reinvested. Further information relating to the
Fund's performance, including expense reimbursements, is contained in the
Prospectus and elsewhere in this report. Past performance is not indicative of
future performance. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when purchased.
Indices are unmanaged and investors cannot invest in them. Additionally, the
Lehman Brothers Intermediate Government/Credit Bond Index return does not
reflect expenses or sales charges. The graphs above and the table below do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares.
BOND FUND DIVERSIFICATION OF INVESTMENTS AMONG MARKET SECTORS
[PIE CHART]
Corporate Notes and Bonds 29%
Mortgage Backed 29%
U.S. Government and Agency Obligations 24%
Commercial Mortgage Backed 7%
Asset Backed 4%
Private Label Mortgage Backed 3%
- ----------------------------------------------------------------------------------------------------------------------------------
MEMBERS BOND FUND AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------------------------------------------------------------------------------------------------------
% Return Without Sales Charge % Return After Sales Charge***
12 Months 3 Years 5 Years Since 12 Months 3 Years 5 Years Since
Ended Ended Ended Inception Ended Ended Ended Inception
4/30/03 4/30/03 4/30/03 to 4/30/03+ 4/30/03 4/30/03 4/30/03 to 4/30/03+
------- ------- ------- ----------- ------- ------- ------- -----------
Class A Shares* 8.93% 8.30% 6.42% 6.27% 3.81% 6.54% 5.38% 5.30%
Class B Shares** 8.12 7.46 5.60 5.46 3.62 6.44 5.28 5.32
Lipper Intermediate Investment
Grade Bond Fund Index 9.58 9.60 6.91 6.88 -- -- -- --
Lehman Brothers Intermediate
Government/Credit Bond Index 10.76 10.00 7.53 7.49 -- -- -- --
* Maximum Sales Charge is 4.75% for A Shares.
** Maximum Contingent Deferred Sales Charge is 4.5% for B Shares.
*** Assuming Maximum Applicable Sales Charge.
+ Fund commenced operations on December 29, 1997.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
4 FUND PERFORMANCE REVIEW
High Income Fund
INVESTMENT OBJECTIVE
The High Income Fund seeks high current income by investing primarily in a
diversified portfolio of lower-rated, higher-yielding income bearing securities.
The Fund also seeks capital appreciation, but only when consistent with its
primary goal.
PORTFOLIO MANAGEMENT
MEMBERS Capital Advisors uses one or more subadvisors under a "manager of
managers" approach to make investment decisions for this Fund. Massachusetts
Financial Services (MFS) is the only subadvisor currently used by MEMBERS
Capital Advisors to manage the assets of the Fund.
PRIMARY INVESTMENT STRATEGIES
The High Income Fund invests primarily in lower-rated, higher-yielding income
bearing securities, such as "junk" bonds. Because the performance of these
securities has historically been strongly influenced by economic conditions,
the Fund may rotate securities selection by business sector according to the
economic outlook. Under normal market conditions, the Fund invests at least 80%
of its assets in bonds rated lower than investment grade (BBB/Baa) and their
unrated equivalents or other high-yielding securities.
For a listing of the securities held in the portfolio at April 30, 2003, please
turn to page 22.
During the six-month period ended April 30, 2003, the U.S. economy struggled
under sluggish Gross Domestic Product growth and an uncertain outlook. But even
in this sluggish backdrop, high-yield investors apparently found a way to look
past current problems and focus on what they believed was an economic
environment that was due for improvement. And toward the end of last year and
during the first quarter of this year, high-yield markets posted impressive
returns versus their investment-grade counterparts, even though downgrades
exceeded upgrades by a wide margin. Strong institutional subscriptions and
demand by mutual funds supported the rally. Indeed, during the period, many
institutional investors struggled to accumulate positions in the over-subscribed
high-yield market. This strong performance provided what should have been a
welcome relief for investors who suffered significant losses in the high-yield
sector during the last two years. Concerns among investors about last year's
high-profile downgrades of large companies in several industries abated as yield
spreads between below-investment grade bonds and their higher-quality
counterparts narrowed in dramatic fashion.
The rebound in the high-yield market was led by the media, telecommunications,
and utilities sectors. During the period, the Fund's subadvisor favored select
names in the media group which are believed to have the ability to generate
strong free cash flow, such as broadcasting companies, which have tended to
benefit from increased advertising expenditures in past economic recoveries. The
Fund continued to have significant underweight exposure to the wireline industry
as it still faced many fundamental challenges, not the least among them was
significant over-capacity. The Fund held neutral weights in the wireless telecom
group, also favoring select names with the ability to generate strong free cash
flow. Overall, the Fund's holdings were defensive relative to the high-yield
market at large. And while the Fund's defensiveness served its investors well in
recent years, it contributed to its underperformance during the period as
investors favored riskier bonds.
In this environment, the MEMBERS High Income Fund returned 13.50%, (Class A
shares at net asset value) during the six-month period ended April 30, 2003,
under-performing its representative index and peers, mostly as a result of the
aforementioned relatively defensive nature of its holdings. The Lehman Brothers
High Yield Bond Index returned 22.75% and the Lipper High Yield Bond Index
returned 18.94% during this period.
Looking forward, it is unreasonable to expect the high-yield market to continue
its recent torrid pace indefinitely. Default rates have declined, but some
consolidation of recent returns would not surprise us in the near term. With
that said, we believe high-yield bonds should benefit from any improvement in
the U.S. economy. Monetary and fiscal policies are stimulative, and have
historically led to a more robust economic recovery.
MEMBERS Capital Advisors' Fixed Income Portfolio Management Team -- Advisor
Massachusetts Financial Services -- Subadvisor
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FUND PERFORMANCE REVIEW 5
High Income Fund
HIGH INCOME FUND CUMULATIVE PERFORMANCE OF $10,000 SINCE INCEPTION(delta)
<Table>
<Caption>
12/29/97
Inception 4/30/98 10/31/98 4/30/99 10/31/99 4/30/00 10/31/00 4/30/01 10/31/01 04/30/02 10/31/02 4/30/03
MMF High Income A 9,525 9,799 8,974 10,171 9,843 10,085 9,763 9,992 9,574 10,054 9,606 10,902
MMF High Income B 10,000 9,800 8,962 10,091 9,805 10,114 9,698 10,001 9,571 10,223 9,745 10,947
Lehman Brothers High
Yield Bond IX 10,000 10,398 9,790 10,444 10,215 10,223 10,050 10,334 10,035 10,701 9,484 11,642
</Table>
[PERFORMANCE GRAPH]
(delta) This chart compares a $10,000 investment made in the Fund on its
inception date to a $10,000 investment made in the index on that date. All
dividends and capital gains are reinvested. Further information relating to the
Fund's performance, including expense reimbursements, is contained in the
Prospectus and elsewhere in this report. Past performance is not indicative of
future performance. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when purchased.
Indices are unmanaged and investors cannot invest in them. Additionally, the
Lehman Brothers High yield Bond Index return does not reflect expenses or sales
charges. The graphs above and the table below do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares.
HIGH INCOME FUND DIVERSIFICATION OF INVESTMENTS AMONG MARKET SECTORS
[PIE CHART]
Other Sectors 31%
Recreation 10%
Energy 9%
Media 8%
Containers & Packaging 7%
Cash and Other Net Assets 6%
Industrials 6%
Basic Materials 5%
Building and Construction 5%
Communications 5%
Telecommunications 4%
Retail 4%
- ----------------------------------------------------------------------------------------------------------------------------------
MEMBERS HIGH INCOME FUND AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------------------------------------------------------------------------------------------------------
% Return Without Sales Charge % Return After Sales Charge***
12 Months 3 Years 5 Years Since 12 Months 3 Years 5 Years Since
Ended Ended Ended Inception Ended Ended Ended Inception
4/30/03 4/30/03 4/30/03 to 4/30/03+ 4/30/03 4/30/03 4/30/03 to 4/30/03+
------- ------- ------- ----------- ------- ------- ------- ----------
Class A Shares* 8.45% 2.63% 2.16% 2.56% 3.25% 1.00% 1.17% 1.63%
Class B Shares** 7.77% 1.88 1.45 1.83 3.27 0.94 1.18 1.71
Lipper High Yield Bond Fund Index 7.13 -0.32 -0.59 0.35 -- -- -- --
Lehman Brothers High Yield Bond Index 8.84 4.43 2.29 2.89 -- -- -- --
* Maximum Sales Charge is 4.75% for A Shares.
** Maximum Contingent Deferred Sales Charge is 4.5% for B Shares.
*** Assuming Maximum Applicable Sales Charge.
+ Fund commenced operations on December 29, 1997.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
6 FUND PERFORMANCE REVIEW
Balanced Fund
INVESTMENT OBJECTIVE
The Balanced Fund seeks a high total return through the combination of income
and capital appreciation.
PORTFOLIO MANAGEMENT
The Fund is managed by a team of MEMBERS Capital Advisors' portfolio managers.
PRIMARY INVESTMENT STRATEGIES
The Balanced Fund invests in a broadly diversified array of securities including
common stocks, bonds and money market instruments. The Fund employs regular
rebalancing to maintain a relatively static asset allocation. Stock, bond and
cash components will vary, however, reflecting the relative availability of
attractively priced stocks and bonds. Generally, common stocks will constitute
60% to 40% of the Fund's assets, bonds will constitute 40% to 60% of the Fund's
assets and money market instruments may constitute up to 20% of the Fund's
assets.
For a listing of the securities held in the portfolio at April 30, 2003, please
turn to page 29.
Economic growth in the six-month period ended April 30, 2003, was restrained as
many companies awaited, among other things, the resolution of geopolitical
tensions before considering investing in plant and equipment or hiring new
workers. A weakening labor market contributed to modestly slowed consumer
spending. High energy prices, caused largely by low U.S. oil inventories and
disturbances in Nigeria, Venezuela, and the Middle East, also played a role in
damping the economic activity of businesses and consumers. The rise in energy
prices led to an up-tick in inflation, though not to troubling levels. The
housing market and residential construction remained the bulwark of the U.S.
economy, thanks to low interest rates.
On November 6, 2002, the Federal Reserve cut its benchmark federal funds rate
from 1.75% to 1.25% in order to stimulate the sluggish U.S. economy. U.S.
Treasury bonds responded positively, with prices rising and yields falling
throughout most of the yield curve. Yields fell most at the extremes of the
curve, with the 90-Day U.S. Treasury Bill yield falling from 1.44% to 1.11%, and
the 30-Year U.S. Treasury Bond yield falling from 4.99% to 4.77%. Price gains
were more restrained for intermediate-term U.S. Treasurys, and the 5-Year U.S.
Treasury note actually saw its price decline slightly over the period. U.S.
corporate bonds performed well during the period, as investors noted
improvements in companies' balance sheets and profits. In general, it was a good
six months for investment-grade bonds.
U.S. stocks hit multi-year lows on October 9, 2002, reflecting considerable
investor pessimism. As the six month period ended April 30, 2003 began, however,
they had already rallied off these lows. They rose throughout November and then
leveled off until early January, when concerns about the possible effects of an
anticipated invasion of Iraq and slack economic conditions led to a sharp
decline in prices. By early March, many major stock indexes had fallen near
their October lows, but another rally soon seized equity markets. The success of
military operations in Iraq helped to support this rally, and equity investors
began to anticipate an improvement in economic conditions. From October 31, 2002
to April 30, 2003, despite high levels of volatility, U.S. stocks provided
positive returns roughly in line with historical averages for a six-month
period.
During the six month period ended April 30, 2003, the MEMBERS Balanced Fund
returned 3.03% (Class A shares at net asset value), modestly under-performing
the Blended Synthetic Index, a representative index of stocks, bonds, and money
market instruments, which returned 4.06%, and a representative index of
comparable domestic hybrid funds, the Lipper Balanced Fund Index, which returned
4.77%. The Fund's under-performance can be attributed largely to a
higher-than-index weight in mortgage-backed securities, which lagged U.S.
Treasury bonds and corporate bonds during the period, to its emphasis on value
stocks, which under-performed growth, and to its holdings in mid-cap stocks,
which under-performed large-cap stocks. Performance of the Fund's stock
portfolio was not significantly affected by sector weighting differences from
the S&P 500 Stock Index. The Fund's performance was hurt by stock selection in
the information technology sector, where holdings Micron Technology and
Peoplesoft under-performed, and stock selection in the utilities sector, where
holding Duke Energy declined because of its exposure to the troubled
merchant-energy business. The Fund's performance was helped by stock selection
in the consumer discretionary sector, where the Fund's holdings in cable
concerns Comcast and Cox Communications rebounded sharply, and in the health
care sector, where holdings Genzyme and Medimmune benefited from a rally in
biotechnology stocks, and Pharmacia appreciated on expectations of a successful
merger with Pfizer.
The MEMBERS Balanced Fund holds a diversified portfolio of stocks, bonds, and
money market instruments designed with the intention to moderate downside risk
to investors while offering them the opportunity to benefit from the long-term
growth of the U.S. economy. Management believes that this broad diversification
should enable the Fund's overall portfolio to respond well in a variety of
economic conditions.
MEMBERS Capital Advisors' Stock and Fixed-Income Portfolio Management
Teams -- Advisor
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FUND PERFORMANCE REVIEW 7
Balanced Fund
BALANCED FUND CUMULATIVE PERFORMANCE OF $10,000 SINCE INCEPTION(delta)
<Table>
<Caption>
12/29/97
Inception 4/30/98 10/31/98 4/30/99 10/31/99 4/30/00 10/31/00 4/30/01 10/31/01 04/30/02 10/31/02 4/30/03
MMF Balanced A 9,425 10,281 10,266 11,736 11,866 12,653 12,893 12,579 11,792 11,993 10,897 11,228
MMF Balanced B 10,000 10,432 10,374 11,420 11,922 12,852 13,053 12,728 11,867 12,329 11,161 11,357
Synthetic Index 10,000 10,872 11,196 11,707 12,017 12,724 13,383 13,054 13,680 12,735 12,063 12,554
</Table>
[PERFORMANCE GRAPH]
(delta)This chart compares a $10,000 investment made in the Fund on its
inception date to a $10,000 investment made in the index on that date. All
dividends and capital gains are reinvested. Further information relating to the
Fund's performance, including expense reimbursements, is contained in the
Prospectus and elsewhere in this report. Past performance is not indicative of
future performance. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when purchased.
Indices are unmanaged and investors cannot invest in them. Additionally, the
Blended Synthetic Index return does not reflect expenses or sales charges. The
graphs above and the table below do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
BALANCED FUND DIVERSIFICATION OF INVESTMENTS AMONG MARKET SECTORS
[PIE CHART]
Common Stocks 54%
Corporate Notes & Bonds 16%
Mortgaged Backed 11%
U.S. Government and Agency Obligations 9%
Asset Backed 3%
Commercial Mortgage Backed 3%
Cash and Other Net Assets 2%
Private Label Mortgage Backed 2%
- -----------------------------------------------------------------------------------------------------------------------------------
MEMBERS BALANCED FUND AVERAGE ANNUAL TOTAL RETURN
- -----------------------------------------------------------------------------------------------------------------------------------
% Return Without Sales Charge % Return After Sales Charge***
12 Months 3 Years 5 Years Since 12 Months 3 Years 5 Years Since
Ended Ended Ended Inception Ended Ended Ended Inception
4/30/03 4/30/03 4/30/03 to 4/30/03+ 4/30/03 4/30/03 4/30/03 to 4/30/03+
------- ------- ------- ----------- ------- ------- ------- -----------
Class A Shares* -6.38% -3.90% 1.78% 3.33% -11.75% -5.79% 0.58% 2.19%
Class B Shares** -7.07 -4.62 1.03 2.58 -11.18 -5.68 0.67 2.41
Lipper Balanced Fund Index -5.88 -3.25 1.11 2.85 -- -- -- --
Blended Synthetic Index -1.42 -1.41 2.92 4.36 -- -- -- --
* Maximum Sales Charge is 5.75% for A Shares.
** Maximum Contingent Deferred Sales Charge is 4.5% for B Shares.
*** Assuming Maximum Applicable Sales Charge.
+ Fund commenced operations on December 29, 1997.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
8 FUND PERFORMANCE REVIEW
Growth and Income Fund
INVESTMENT OBJECTIVE
The Growth and Income Fund seeks long-term capital growth with income as a
secondary consideration.
PORTFOLIO MANAGEMENT
The Fund is managed by a team of MEMBERS Capital Advisors' portfolio managers.
PRIMARY INVESTMENT STRATEGIES
The Growth and Income Fund focuses on stocks of companies with financial and
market strengths and a long-term record of financial performance, and will,
under normal market conditions, maintain at least 80% of its assets in such
stocks. Primarily through ownership of a diversified portfolio of common stocks
and securities convertible into common stocks, the Fund will seek a rate of
return in excess of returns typically available from less variable investment
alternatives. The Fund will typically invest in securities representing every
sector of the S&P 500 Index in approximately(+/-50%) the same weightings such
sector has in the S&P 500 Index.
For a listing of the securities held in the portfolio at April 30, 2003, please
turn to page 33.
Economic growth in the six-month period ended April 30, 2003, was restrained as
many companies awaited, among other things, the resolution of geopolitical
tensions before considering investing in plant and equipment or hiring new
workers. A weakening labor market contributed to modestly slowed consumer
spending. High energy prices, caused largely by a low U.S. oil inventories and
disturbances in Nigeria, Venezuela, and the Middle East, also played a role in
damping the economic activity of businesses and consumers. The rise in energy
prices led to an up-tick in inflation, though not to troubling levels. The
housing market and residential construction remained the bulwark of the U.S.
economy, thanks to low interest rates.
U.S. stocks hit multi-year lows on October 9, 2002, reflecting considerable
investor pessimism. As the six month period ended April 30, 2003 began, however,
they had already rallied off these lows. They rose throughout November and then
leveled off until early January, when concerns about the possible effects of an
anticipated invasion of Iraq and slack economic conditions led to a sharp
decline in prices. By early March, many major stock indexes had fallen near
their October lows, but another rally soon seized equity markets. The success of
military operations in Iraq helped to support this rally, and equity investors
began to anticipate an improvement in economic conditions. From October 31, 2002
to April 30, 2003, despite high levels of volatility, U.S. stocks provided
positive returns roughly in line with historical averages for a six-month
period.
In the six-month period ended April 30, 2003, the MEMBERS Growth and Income Fund
returned 2.26% (Class A shares at net asset value), under-performing a
representative index of large-cap stocks, the S&P 500 Index, which returned
4.47%, and a representative index of similar funds, the Lipper Large-Cap Value
Fund Index, which returned 4.39%. The Fund's under-performance is primarily
explained by stock selection in the industrials sector, where holding Textron
missed earnings estimates due to weakness in the market for business jets, and
in the utilities sector, where holding Duke Energy declined sharply largely
because of its exposure to the troubled merchant energy business. Performance
was helped by stock selection in the health care sector, where medical device
maker Guidant and diversified pharmaceutical company Wyeth posted strong
returns. Fund performance versus its peers was helped by a relative overweight
in the information technology sector, which appeared to have benefited from
hopes of a rebound in capital spending on computers, networks, and business
equipment.
In the energy, finance, and information technology sectors, the Fund's holdings
have tended not to be industry leaders, as management has preferred to focus on
what were, in its judgment, more attractively valued competitors. During the
period, investors clearly favored industry leaders, which hurt the Fund's
relative performance in these sectors, In the current uncertain economic
environment, management has been re-evaluating the portfolio's "second tier"
holdings and focusing on stocks of enterprises that it believes are better
prepared to do well in a number of different potential economic scenarios.
Energy industry leader ExxonMobil was recently added to the portfolio, as was
Berkshire Hathaway, a diversified conglomerate with a strong insurance business.
In information technology, management sold positions in Agilent and Philips
Electronics, leaving IBM, Hewlett-Packard, and Intel as the bulwarks of the
Fund's technology stock portfolio. The Fund's position in Duke Energy was
eliminated and replaced with positions in more traditional utility companies
Ameren and FPL, which management believes should offer relatively stable
operating results and dividend payouts. Management also hopes that the recently
enacted reductions in taxes on dividend and capital gains will benefit the Fund,
with its focus on enterprises with long-term records of generating significant
cash flows. Management continues to believe that the Fund's holdings remain
attractively valued and poised to perform well if the economy recovers according
to consensus expectations and investor attitudes change for the better. However,
in stock market conditions which remain difficult, holdings may come under
further selling pressure if economic growth and/or corporate profits disappoint.
MEMBERS Capital Advisors' Stock Portfolio Management Team -- Advisor
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FUND PERFORMANCE REVIEW 9
Growth and Income Fund
GROWTH AND INCOME FUND CUMULATIVE PERFORMANCE OF $10,000 SINCE INCEPTION(delta)
<Table>
<Caption>
12/29/97
Inception 4/30/98 10/31/98 4/30/99 10/31/99 4/30/00 10/31/00 4/30/01 10/31/01 04/30/02 10/31/02 4/30/03
MMF Growth & Income A 9,425 10,928 10,327 12,910 12,634 13,654 13,506 12,430 10,748 11,300 9,081 9,286
MMF Growth & Income B 10,000 11,114 10,447 12,287 12,821 13,893 13,682 12,566 10,777 11,609 9,295 9,365
S&P 500 Index 10,000 11,717 11,670 13,057 14,667 15,725 15,560 13,677 11,680 11,948 9,915 10,359
</Table>
[PERFORMANCE GRAPH]
(delta) This chart compares a $10,000 investment made in the Fund on its
inception date to a $10,000 investment made in the index on that date. All
dividends and capital gains are reinvested. Further information relating to the
Fund's performance, including expense reimbursements, is contained in the
Prospectus and elsewhere in this report. Past performance is not indicative of
future performance. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when purchased.
Indices are unmanaged and investors cannot invest in them. Additionally, the S&P
500 Index return does not reflect expenses or sales charges. The graphs above
and the table below do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
GROWTH AND INCOME FUND DIVERSIFICATION OF INVESTMENTS AMONG MARKET SECTORS
[PIE CHART]
Financials 25%
Consumer Discretionary 11%
Healthcare 11%
Information Technology 11%
Industrials 10%
Consumer Staples 8%
Energy 8%
Telecommunications Services 5%
Cash and Other Net Assets 4%
Materials 4%
Utilities 3%
- ----------------------------------------------------------------------------------------------------------------------------------
MEMBERS GROWTH AND INCOME FUND AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------------------------------------------------------------------------------------------------------
% Return Without Sales Charge % Return After Sales Charge***
12 Months 3 Years 5 Years Since 12 Months 3 Years 5 Years Since
Ended Ended Ended Inception Ended Ended Ended Inception
4/30/03 4/30/03 4/30/03 to 4/30/03+ 4/30/03 4/30/03 4/30/03 to 4/30/03+
------- ------- ------- ----------- ------- ------- ------- -----------
Class A Shares* -17.82% -12.06% -3.20% -0.28% -22.54% -13.78% -4.35% -1.38%
Class B Shares** -18.52% -12.75 -3.94 -1.04 -22.18 -13.78 -4.32 -1.22
Lipper Large-Cap Value Fund Index -15.09 -7.96 -2.12 0.54 -- -- -- --
S&P 500 Index -13.31 -12.97 -2.43 0.66 -- -- -- --
* Maximum Sales Charge is 5.75% for A Shares.
** Maximum Contingent Deferred Sales Charge is 4.5% for B Shares.
*** Assuming Maximum Applicable Sales Charge.
+ Fund commenced operations on December 29, 1997.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
10 FUND PERFORMANCE REVIEW
Capital Appreciation Fund
INVESTMENT OBJECTIVE
The Capital Appreciation Fund seeks long-term capital appreciation.
PORTFOLIO MANAGEMENT
The Fund is managed by a team of MEMBERS Capital Advisors' portfolio managers.
PRIMARY INVESTMENT STRATEGIES
The Capital Appreciation Fund invests primarily in common stocks, and will,
under normal market conditions, maintain at least 80% of its assets in such
securities. The Fund seeks stocks that have low market prices relative to their
intrinsic values as estimated based on fundamental analysis of the issuing
companies and their prospects. Relative to the Growth and Income Fund, the
Capital Appreciation Fund will include some smaller, less developed issuers and
some companies undergoing more significant changes in their operations or
experiencing significant changes in their markets. The Fund will diversify its
holdings among various industries and among companies within those industries
but will often be less diversified than the Growth and Income Fund. The Fund
typically invests in securities repesenting every sector of the S&P
SuperComposite 1500 Index in approximately (+/-100%) the same weightings as such
sector has in the S&P SuperComposite 1500 Index.
For a listing of the securities held in the portfolio at April 30, 2003, please
turn to page 34.
Economic growth in the six-month period ended April 30, 2003, was restrained as
many companies awaited, among other things, the resolution of geopolitical
tensions before considering investing in plant and equipment or hiring new
workers. A weakening labor market contributed to modestly slowed consumer
spending. High energy prices, caused largely by low U.S. oil inventories and
disturbances in Nigeria, Venezuela, and the Middle East, also played a role in
damping the economic activity of businesses and consumers. The rise in energy
prices led to an up-tick in inflation, though not to troubling levels. The
housing market and residential construction remained the bulwark of the U.S.
economy, thanks to low interest rates.
U.S. stocks hit multi-year lows on October 9, 2002, reflecting considerable
investor pessimism. As the six month period ended April 30, 2003 began, however,
they had already rallied off these lows. They rose throughout November and then
leveled off until early January, when concerns about the possible effects of an
anticipated invasion of Iraq and slack economic conditions led to a sharp
decline in prices. By early March, most major stock indexes had fallen near
their October lows, but another rally soon seized equity markets. The success of
military operations in Iraq helped to support this rally, and equity investors
began to anticipate an improvement in economic conditions. From October 31, 2002
to April 30, 2003, despite high levels of volatility, U.S. stocks provided
positive returns roughly in line with historical averages for a six-month
period.
During the six month period ended April 30, 2003, the MEMBERS Capital
Appreciation Fund returned 5.82% (Class A shares at net asset value),
out-performing a broadly representative index of stocks at all capitalization
levels, the S&P SuperComposite 1500 Index, which returned 3.98%, and a
representative index of similar funds, the Lipper Multi-Cap Core Fund Index,
which returned 4.46%. Performance was helped by the Fund's slight relative
underweight in the consumer staples sector, which under- performed the broader
market in a time when economic optimism generally rose. Investors began to
rediscover value in some of the Fund's holdings that had fallen during last
spring's accounting scandals, when stocks of companies with aggressive
accounting practices or a history of acquisitiveness were punished--in
management's judgment, sometimes unfairly so. This reevaluation was particularly
notable in the consumer discretionary sector, where holdings Cox Communications
and Liberty Media rose sharply. Stock selection in the health care sector, where
holdings Genzyme and Medimmune benefited from a strong rebound in biotechnology
stocks, and in the information technology sector, where holdings Autodesk,
Sanmina, ADC Telecommunications, and EMC all posted favorable returns, also
contributed to the Fund's positive results for the period. Performance was hurt
by stock selection in the financials sector, as Freddie Mac was driven down by
concerns about its financial structure and the impact of the home-loan
refinancing boom on its earnings.
The Fund's strategy of seeking out reasonably-valued stocks of companies
believed to offer the potential for significant levels of earnings growth proved
effective during the six months ended April 30, 2003, as the Fund rebounded
after a difficult period of performance in the first nine months of 2002.
Management believes that the Fund's portfolio continues to offer good prospects
for long-term capital appreciation, particularly if, as is generally expected
among economists, the U.S. economy returns to its historical growth rate in the
near future.
MEMBERS Capital Advisors' Stock Portfolio
Management Team -- Advisor
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FUND PERFORMANCE REVIEW 11
Capital Appreciation Fund
CAPITAL APPRECIATION FUND CUMULATIVE PERFORMANCE OF $10,000 SINCE
INCEPTION(delta)
<Table>
<Caption>
12/29/97
Inception 4/30/98 10/31/98 4/30/99 10/31/99 4/30/00 10/31/00 4/30/01 10/31/01 04/30/02 10/31/02 4/30/03
MMF Capital
Appreciation A 9,425 11,057 10,415 12,558 12,945 14,585 15,550 14,708 12,116 12,057 9,142 9,674
MMF Capital
Appreciation B 10,000 11,261 10,541 12,034 13,153 14,870 15,812 14,940 12,205 12,401 9,364 9,779
S&P 1500 Index 10,000 11,692 11,428 13,445 14,281 15,481 15,446 13,757 11,795 12,314 10,140 10,586
</Table>
[PERFORMANCE GRAPH]
(delta)This chart compares a $10,000 investment made in the Fund on its
inception date to a $10,000 investment made in the index on that date. All
dividends and capital gains are reinvested. Further information relating to the
Fund's performance, including expense reimbursements, is contained in the
Prospectus and elsewhere in this report. Past performance is not indicative of
future performance. Investment return and principal value will fluctuate, so an
investors shares, when redeemed, may be worth more or less than when purchased.
Indices are unmanaged and investors cannot invest in them. Additionally, the S&P
SuperComposite 1500 Index return does not reflect expenses or sales charges. The
graphs above and the table below do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
CAPITAL APPRECIATION FUND DIVERSIFICATION OF INVESTMENTS AMONG MARKET SECTORS
[PIE CHART]
Financials 18%
Information Technology 18%
Healthcare 17%
Consumer Discretionary 13%
Industrials 11%
Consumer Staples 7%
Energy 5%
Cash and Other Net Assets 4%
Telecommunications Services 3%
Materials 2%
Utilities 2%
- -----------------------------------------------------------------------------------------------------------------------------------
MEMBERS CAPITAL APPRECIATION FUND AVERAGE ANNUAL TOTAL RETURN
- -----------------------------------------------------------------------------------------------------------------------------------
% Return Without Sales Charge % Return After Sales Charge***
12 Months 3 Years 5 Years Since 12 Months 3 Years 5 Years Since
Ended Ended Ended Inception Ended Ended Ended Inception
4/30/03 4/30/03 4/30/03 to 4/30/03+ 4/30/03 4/30/03 4/30/03 to 4/30/03+
------- ------- ------- ----------- ------- ------- ------- -----------
Class A Shares* -19.76% -12.79% -2.64% 0.49% -24.35% -14.49% -3.79% -0.62%
Class B Shares** -20.36 -13.42 -3.35 -0.23 -23.94 -14.44 -3.74 -0.42
Lipper Multi-Cap Core Fund Index -14.54 -11.98 -2.38 0.61 -- -- -- --
S&P SuperComposite 1 500 Index -13.93 -11.81 -1.91 1.07 -- -- -- --
* Maximum Sales Charge is 5.75% for A Shares.
** Maximum Contingent Deferred Sales Charge is 4.5% for B Shares.
*** Assuming Maximum Applicable Sales Charge.
+ Fund commenced operations on December 29, 1997.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
12 FUND PERFORMANCE REVIEW
Mid-Cap Fund
INVESTMENT OBJECTIVE
The Mid-Cap Fund seeks long-term capital appreciation.
PORTFOLIO MANAGEMENT
MEMBERS Capital Advisors' uses one or more subadvisors under a "manager of
managers" approach to make investment decisions for some or all of the assets of
this Fund. Wellington Management Company, LLP ("Wellington Management") is the
only subadvisor currently used by MEMBERS Capital Advisors to manage the assets
within the small-cap portion of the Fund.
PRIMARY INVESTMENT STRATEGIES
The Mid-Cap Fund invests primarily in common stocks of midsize and smaller
companies (market capitalization of less than $10 billion at the time of
purchase), and will under normal market conditions, maintain at least 80% of its
assets in such securities. The Fund seeks stocks in this midsize to smaller
range that have a low market price relative to their value as estimated based on
fundamental analysis of the issuing company and its prospects. Relative to both
the Growth and Income and Capital Appreciation Funds, the Mid-Cap Fund includes
more smaller, less developed issuers. The Fund diversifies its holdings among
various industries and among companies within those industries but is often less
diversified than the Growth and Income Fund. The Fund typically invests in
securities representing every sector of the S&P MidCap 400 Index in
approximately (+/-100%) the same weightings as such sector has in the S&P MidCap
400 Index.
For a listing of the securities held in the portfolio on April 30, 2003, please
turn to page 35.
Economic growth in the six-month period ended April 30, 2003, was restrained as
many companies awaited, among other things, the resolution of geopolitical
tensions before considering investing in plant and equipment or hiring new
workers. A weakening labor market contributed to modestly slowed consumer
spending. High energy prices, caused largely by low U.S. oil inventories and
disturbances in Nigeria, Venezuela, and the Middle East, also played a role in
damping the economic activity of businesses and consumers. The rise in energy
prices led to an up-tick in inflation, though not to troubling levels. The
housing market and residential construction remained the bulwark of the U.S.
economy, thanks to low interest rates.
U.S. stocks hit multi-year lows on October 9, 2002, reflecting considerable
investor pessimism. As the six month period ended April 30, 2003 began, however,
they had already rallied off these lows. They rose throughout November and then
leveled off until early January, when concerns about the possible effects of an
anticipated invasion of Iraq and slack economic conditions led to a sharp
decline in prices. By early March, most major stock indexes had fallen near
their October lows, but another rally soon seized equity markets. The success of
military operations in Iraq helped to support this rally, and equity investors
began to anticipate an improvement in economic conditions. From October 31, 2002
to April 30, 2003, despite high levels of volatility, U.S. stocks provided
positive returns roughly in line with historical averages for a six-month
period.
During the six-month period ended April 30, 2003, the MEMBERS Mid-Cap Fund
returned 5.90% (Class A shares at net asset value), out-performing a
representative index of mid-cap stocks, the S&P MidCap 400 Index, which returned
3.98%, and modestly under-performing a representative index of similar funds,
the Lipper Mid-Cap Value Fund Index, which returned 6.31%. Fund performance
versus the S&P MidCap 400 Index was helped by an overweight in the industrials
sector, although stock selection in the sector hurt performance, as holding
Avery Dennison under-performed and holding Manpower fell due largely to further
unexpected weakness in the labor market. Performance was helped by stock
selection in the consumer staples sector, as holdings Hain Celestial and
McCormick posted good operating results, in the financials sector, as
Countrywide Financial continued to benefit from strength in the housing market,
and in the health care sector, as holding Omnicare reported robust earnings
growth.
Geopolitical events and the uncertain pace of economic recovery are likely to
contribute to an unusually high level of volatility in equity markets in the
near term. However, consensus expectations among economists are that recovery in
the U.S. economy will pick up steam in the second half of 2003. The Fund's
portfolio remains well-diversified and focused on the potential for long-term
capital appreciation, with broad exposure to many companies and industries that
management believes should benefit if economic conditions improve.
MEMBERS Capital Advisors' Stock Portfolio
Management Team -- Advisor
Wellington Management Company, LLP -- Subadvisor
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FUND PERFORMANCE REVIEW 13
Mid-Cap Fund
MID-CAP FUND CUMULATIVE PERFORMANCE OF $10,000 SINCE INCEPTION(delta)
<Table>
<Caption>
2/28/01
Inception 4/30/01 10/31/01 4/30/02 10/31/02 4/30/03
MMF Mid-Cap Fund A 9,425 9,793 8,935 10,601 8,149 8,630
MMF Mid-Cap Fund B 10,000 9,930 9,006 11,160 8,540 8,705
S&P 400 Index 10,000 10,278 9,126 10,954 8,691 9,036
</Table>
[PERFORMANCE GRAPH]
(delta)This chart compares a $10,000 investment made in the Fund on its
inception date to a $10,000 investment made in the index on that date. All
dividends and capital gains are reinvested. Further information relating to the
Fund's performance, including expense reimbursements, is contained in the
Prospectus and elsewhere in this report. Past performance is not indicative of
future performance. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when purchased.
Indices are unmanaged and investors cannot invest in them. Additionally, the S&P
MidCap 400 Index return does not reflect expenses or sales charges. The graphs
above and the table below do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
MID-CAP FUND DIVERSIFICATION OF INVESTMENTS AMONG MARKET SECTORS
[PIE CHART]
Financials 22%
Consumer Discretionary 16%
Industrials 14%
Healthcare 9%
Information Technology 9%
Utilities 8%
Energy 7%
Materials 5%
Cash and Other Assets 4%
Telecommunication Services 1%
- -------------------------------------------------------------------------------------------------------------
MEMBERS MID-CAP FUND AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------------------------------------------------------------------------------
% Return Without Sales Charge % Return After Sales Charge***
12 Months Since 12 Months Since
Ended Inception Ended Inception
4/30/03 to 4/30/03+ 4/30/03 to 4/30/03+
------- ----------- ------- -----------
Class A Shares* -18.59% -3.98% -23.30% -6.56%
Class B Shares** -19.18 -4.64 -22.81 -6.19
Lipper Mid-Cap Value Fund Index -16.93 -2.81 -- --
S&P MidCap 400 Index -17.51 -4.57 -- --
* Maximum Sales Charge is 5.75% for A Shares.
** Maximum Contingent Deferred Sales Charge is 4.5% for B Shares.
*** Assuming Maximum Applicable Sales Charge.
+ Fund commenced operations on February 28, 2001.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
14 FUND PERFORMANCE REVIEW
Multi-Cap Growth Fund
INVESTMENT OBJECTIVE
The Multi-Cap Growth Fund seeks long-term capital appreciation.
PORTFOLIO MANAGEMENT
MEMBERS Capital Advisors uses one or more subadvisors under a "manager of
managers" approach to make investment decisions for this Fund. Wellington
Management Company, LLP is the only subadvisor currently used by MEMBERS Capital
Advisors to manage the assets of the Fund.
PRIMARY INVESTMENT STRATEGIES
The Multi-Cap Growth Fund invests generally in common stocks, securities
convertible into common stocks and related equity securities. Under normal
market conditions, the fund will maintain at least 80% of its assets in these
securities. The fund seeks securities of growth companies across a broad range
of market capitalization, which are companies that may be:
- - major enterprises that have demonstrated and are expected to sustain above-
average growth or whose rates of earnings growth are anticipated to
accelerate because of factors such as expectations relative to management,
new or unique products, superior market position, changes in demand for the
company's products, or changes in the economy or segments of the economy
affecting the company; or
- - early in their life cycle, but have the potential to become much larger
enterprises.
For a listing of the securities held in the portfolio at April 30, 2003, please
turn to page 37.
The current slow recovery in the U.S. economy took a step back during the
six-month period ended April 30, 2003, impacted by the war in Iraq and higher
energy prices. The uncertainties and distraction of the war contributed to
delays in business investment plans while higher energy prices pinched the
wallets of both consumers and businesses. That spike in energy prices occurred
during a particularly cold winter in the Northeast and Midwest, applying
additional strain to the already lackluster economic backdrop. Leading up to the
war, stock markets posted modest declines as investors took a wait-and-see
approach in their analysis of the potential economic impact of events overseas.
After the war started and it was clear that success was at hand, stocks rallied
with considerable preference among investors for the more aggressive,
fast-growing companies that had fallen out of favor since the bursting of the
1990's tech bubble. This new and sudden improvement in investor psychology was a
welcome sight for growth investors who had experienced declines of historic
proportions during the last three years.
Given the bottom-up investment strategy employed by the Fund's subadvisor,
sector allocation changes reflected individual stock selection. Larger changes
included reductions in exposure to industrials, consumer staples, and
information technology, along with increases in health care, energy, and
telecommunications. The Fund continued to hold overweight positions in consumer
discretionary, financials, and health care, and underweight positions in
information technology, industrials, and consumer staples. During the period,
stock selection detracted from performance, particularly in health care and
consumer staples. Sector allocation was positive, primarily due to underweight
positions in consumer staples which performed poorly during the period. The net
result for the period was out-performance relative to the Fund's representative
index and peers. For the six-month period ended April 30, 2003, the MEMBERS
Multi-Cap Growth Fund posted a total return of 4.87% (Class A shares at net
asset value), compared to the 4.48% return of the Russell 3000 Growth Index and
the 2.37% return of the Lipper Large-Cap Growth Fund Index.
Going forward, the subadvisor expects the economic recovery to continue, albeit
at a slow pace. Businesses continue to de-leverage their balance sheets, and
excess capacity exists in many industries globally. This implies a sub-par
climate for business investment compared to the robust environment seen during
the 1990s. We believe consumer spending is also likely to lag as households
increase their savings rates and bear the pressure of slow job growth. Many
states are dealing with enormous budget deficits, and employment reduction seems
to us likely to be part of their deficit remedy. Nevertheless, business
inventories are very low, and fiscal and monetary policies are quite
stimulative. Our overall outlook, then, is one of slow-but-steady recovery over
the next several quarters. The Fund seems well positioned for this type of
environment as many of its holdings are more reliant on industry-specific
developments, market share gains, and new product introductions than they are on
the specific level of economic activity. While faster growth would certainly be
a plus for investors, the subadvisor is pursuing a strategy it expects should
perform well even if their modest growth outlook comes to pass.
MEMBERS Capital Advisors' Stock Portfolio
Management Team -- Advisor
Wellington Management Company, LLP -- Subadvisor
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FUND PERFORMANCE REVIEW 15
Multi-Cap Growth Fund
MULTI-CAP GROWTH FUND CUMULATIVE PERFORMANCE OF $10,000 SINCE INCEPTION(delta)
<Table>
<Caption>
2/29/00
Inception 4/30/00 10/31/00 4/30/01 10/31/01 4/30/02 10/31/02 4/30/03
MMF Multi-Cap Growth A 9,425 8,087 7,417 5,353 4,024 3,949 3,289 3,450
MMF Multi-Cap Growth B 10,000 8,194 7,478 5,405 4,051 4,130 3,420 3,473
Russell 3000 Growth Index 10,000 10,023 9,221 6,839 5,594 5,521 4,490 4,595
</Table>
[PERFORMANCE GRAPH]
(delta)This chart compares a $10,000 investment made in the Fund on its
inception date to a $10,000 investment made in the index on that date. All
dividends and capital gains are reinvested. Further information relating to the
Fund's performance, including expense reimbursements, is contained in the
Prospectus and elsewhere in this report. Past performance is not indicative of
future performance. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when purchased.
Indices are unmanaged and investors cannot invest in them. Additionally, the
Russell 3000 Growth Index return does not reflect expenses or sales charges. The
graphs above and the table below do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
MULTI-CAP GROWTH FUND DIVERSIFICATION OF INVESTMENTS AMONG MARKET SECTORS
[PIE CHART]
Healthcare 31%
Information Technology 22%
Financials 12%
Consumer Discretionary 10%
Consumer Services 9%
Other Sectors 6%
Cash and Other Net Assets 5%
Telecommunications 5%
- -------------------------------------------------------------------------------------------------------------------
MEMBERS MULTI-CAP GROWTH FUND AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------------------------------------------------------------------------------------
% Return Without Sales Charge % Return After Sales Charge***
12 Months 3 Years Since 12 Months 3 Years Since
Ended Ended Inception Ended Ended Inception
4/30/03 4/30/03 to 4/30/03+ 4/30/03 4/30/03 to 4/30/03+
------- ------- ----------- ------- ------- -----------
Class A Shares* -12.65% -24.72% -27.19% -17.75% -26.18% -28.54%
Class B Shares** -13.32 -25.28 -27.70 -17.22 -26.16 -28.39
Lipper Large-Cap Growth Fund Index -16.50 -22.49 -22.29 -- -- --
Russell 3000 Growth Index -15.01 -22.31 -21.77 -- -- --
* Maximum Sales Charge is 5.75% for A Shares.
** Maximum Contingent Deferred Sales Charge is 4.5% for B Shares.
*** Assuming Maximum Applicable Sales Charge.
+ Fund commenced operations on February 9, 2000.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
16 FUND PERFORMANCE REVIEW
International Stock Fund
INVESTMENT OBJECTIVE
The International Stock Fund seeks long-term growth of capital.
PORTFOLIO MANAGEMENT
MEMBERS Capital Advisors uses one or more subadvisors under a "manager of
managers" approach to make investment decisions for this Fund. Lazard Asset
Management is the only subadvisor currently used by MEMBERS Capital Advisors to
manage the assets of the Fund.
PRIMARY INVESTMENT STRATEGIES
Under normal market conditions, the International Stock Fund invests at least
80% of its assets in foreign equity securities. Foreign securities are issued by
companies organized or whose principal operations are outside the U.S., issued
by a foreign government, principally traded outside of the U.S., or quoted or
denominated in a foreign currency. Equity securities include common stocks,
securities convertible into common stocks, preferred stocks and other securities
representing equity interests such as American depository receipts, European
depository receipts and Global depository receipts.
For a listing of the securities held in the portfolio at April 30, 2003, please
turn to page 39.
Global stock markets continued to struggle during most of the six-month period
ended April 30, 2003, as investors focused on soft global economies and
lackluster corporate earnings growth. Additional signs of economic weakness
emerged throughout the period, particularly in Germany where industrial
production and business confidence both were below expectations. Throughout the
period, investors focused on the likelihood of war with Iraq, adding to global
uncertainty and rising risk premiums. The sell-off early in the period was very
broad-based, with nearly all sectors declining, and value stocks lagging growth
stocks. However, economically defensive groups such as consumer staples and
healthcare did hold up somewhat better than the overall market, while the
technology and financial sectors were particularly hard-hit. After the war in
Iraq started and investors appeared convinced that success for coalition forces
was at hand, global stock markets posted impressive gains with a strong bias
toward the same growth stocks that had succumbed to significant pressure during
the last three years. April was a particularly strong month for international
stocks as recovering markets overseas and a declining U.S. dollar combined to
produce gains not seen by international investors in several months.
The Fund was clearly impacted by the market turbulence, but did outperform the
MSCI EAFE Index due to its defensive positioning and strong stock selection in a
variety of sectors. For the six-month period ended April 30, 2003, the MEMBERS
International Stock Fund returned 3.26%, (Class A shares at net asset value),
while the MSCI EAFE Index returned 2.04%. The portfolio's significant overweight
position in consumer staples added value during the period. High quality
technology stocks out-performed as the overall sector recovered from earlier
declines. The Fund's small-cap segment under-performed during the period as a
result of underweight positions in the surprisingly resilient Japan and
Netherlands markets, but was helped by stock selection in the UK.
Investor enthusiasm regarding emerging market stocks returned in April after a
period when geopolitical strife and economic uncertainty took their toll. Prior
to the war, stocks in Egypt and Turkey were especially hard hit by regional
tensions. Turkey declined permission for use of military bases as launching
points for U.S. military action in Iraq, thereby losing a multi-billion dollar
aid package offered as an inducement for cooperation. The outbreak of SARS
crippled segments of economies in the Far East, but not enough to offset
investor enthusiasm late in the period. Latin American stocks were the period's
best performers, especially toward the end of the period. The Fund's emerging
market segment was helped by holdings in the healthcare, utilities and energy
sectors, but was hurt by investments in the telecommunications, information
technology, and financial sectors.
While the subadvisor remains uncertain regarding the strength and duration of
the economic recovery and the rebound in consumer confidence, it is confident
that the Fund's holdings should be well positioned to participate as conditions
improve. In the meantime, these companies' strong balance sheets, transparent
financial statements, and increasing productivity should allow the Fund to
perform well. Independent of the macro-economic environment and geopolitical
events, the Fund's focus remains unchanged: to invest in companies that, in the
subadvisor's view, possess defensible business models and that have the
potential to generate superior returns.
MEMBERS Capital Advisors' Stock Portfolio
Management Team -- Advisor
Lazard Asset Management -- Subadvisor
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FUND PERFORMANCE REVIEW 17
International Stock Fund
INTERNATIONAL STOCK FUND CUMULATIVE PERFORMANCE OF $10,000 SINCE
INCEPTION(delta)
<Table>
<Caption>
12/29/97
Inception 4/30/98 10/31/98 4/30/99 10/31/99 4/30/00 10/31/00 4/30/01 10/31/01 04/30/02 10/31/02 4/30/03
International Stock A 9,425 11,104 9,764 11,084 11,413 10,981 10,353 9,632 7,984 9,044 7,646 7,895
International Stock B 10,000 11,301 9,840 10,916 11,545 11,103 10,413 9,703 8,017 9,291 7,826 7,983
MSCI EAFE 10,000 11,592 11,090 12,035 13,863 14,619 10,410 12,257 10,033 10,613 8,745 8,923
</Table>
[PERFORMANCE GRAPH]
(delta)This chart compares a $10,000 investment made in the Fund on its
inception date to a $10,000 investment made in the index on that date. All
dividends and capital gains are reinvested. Further information relating to the
Fund's performance, including expense reimbursements, is contained in the
Prospectus and elsewhere in this report. Past performance is not indicative of
future performance. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when purchased.
Indices are unmanaged and investors cannot invest in them. Additionally, the
MSCI EAFE Index return does not reflect expenses or sales charges. The graphs
above and the table below do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
INTERNATIONAL STOCK FUND GEOGRAPHICAL DIVERSIFICATION OF INVESTMENTS
[PIE CHART]
Europe (excluding United Kingdom) 40%
United Kingdom 23%
Pacific Basin 11%
Japan 9%
Cash and Other Net Assets 4%
Other Countries 4%
Africa 3%
- -----------------------------------------------------------------------------------------------------------------------------------
MEMBERS INTERNATIONAL STOCK FUND AVERAGE ANNUAL TOTAL RETURN
- -----------------------------------------------------------------------------------------------------------------------------------
% Return Without Sales Charge % Return After Sales Charge***
12 Months 3 Years 5 Years Since 12 Months 3 Years 5 Years Since
Ended Ended Ended Inception Ended Ended Ended Inception
4/30/03 4/30/03 4/30/03 to 4/30/03+ 4/30/03 4/30/03 4/30/03 to 4/30/03+
------- ------- ------- ----------- ------- ------- ------- -----------
Class A Shares* -12.71% -10.42% -6.59% -3.27% -17.77% -12.17% -7.70% -4.33%
Class B Shares** -13.32 -11.08 -7.28 -3.98 -17.22 -12.12 -7.61 -4.13
Lipper International Fund Index -16.29 -14.25 -4.57 -1.40 -- -- -- --
MSCI EAFE Index -15.92 -15.19 -5.23 -2.11 -- -- -- --
* Maximum Sales Charge is 5.75% for A Shares.
** Maximum Contingent Deferred Sales Charge is 4.5% for B Shares.
*** Assuming Maximum Applicable Sales Charge.
+ Fund commenced operations on December 29, 1997.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
18 CASH RESERVES FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED)
Value
Par Value (Note 2)
- --------- --------
COMMERCIAL PAPER (A) - 47.32%
CONSUMER STAPLES - 5.96%
$ 636,000 Coca Cola Co.
1.210%, due 05/02/03 ..................... $ 635,978
1,300,000 Nestle Finance France SA
1.210%, due 05/01/03 ..................... 1,300,000
-------------
1,935,978
-------------
FINANCE - 29.79%
426,930 Bank America NA
1.270%, due 05/01/03 ..................... 426,930
869,000 Bank America NA
1.240%, due 05/02/03 ..................... 868,970
139,050 Bank America NA
1.240%, due 05/19/03 ..................... 138,964
1,000,000 Corporate Receivables Corp.
1.250%, due 06/02/03 ..................... 998,889
1,300,000 FCAR Owner Trust Series I
1.200%, due 05/23/03 ..................... 1,299,047
750,000 Goldman Sachs Group, Inc.
1.260%, due 07/07/03 ..................... 748,241
1,300,000 Greyhawk Funding LLC
1.260%, due 05/12/03 ..................... 1,299,499
1,000,000 NESS, LLC
1.270%, due 05/30/03 ..................... 998,977
900,000 Province De Quebec
1.260%, due 06/10/03 ..................... 898,740
1,000,000 Three River Funding Corp.
1.250%, due 05/01/03 ..................... 1,000,000
1,000,000 Wells Fargo Bank NA
1.240%, due 05/06/03 ..................... 1,000,000
-------------
9,678,257
-------------
HEALTHCARE - 5.41%
1,000,000 Johnson & Johnson
1.160%, due 05/01/03 ..................... 1,000,000
760,000 Pzifer, Inc.
1.210%, due 05/29/03 ..................... 759,285
-------------
1,759,285
-------------
INFORMATION TECHNOLOGY - 3.08%
1,000,000 International Business Machines Corp.
1.280%, due 05/07/03 ..................... 999,787
-------------
UTILITIES - 3.08%
1,000,000 Emerson Electric Co.
1.220%, due 05/09/03 ..................... 999,729
-------------
TOTAL COMMERCIAL PAPER ................... 15,373,036
(Cost $15,373,036) -------------
CORPORATE NOTES AND BONDS - 20.46%
CONSUMER STAPLES - 3.09%
1,000,000 Quaker Oats Co.
6.910%, due 05/19/03 ..................... 1,002,844
-------------
FINANCE - 15.00%
1,000,000 American Express Credit Corp.
1.33%, due 03/05/04 (G) .................. 1,000,000
450,000 American General Finance Corp.
6.170%, due 05/21/03 ..................... 450,820
FINANCE (CONTINUED)
1,000,000 Caterpillar Financial Services Corp.
5.470%, due 10/01/03 ..................... 1,015,541
900,000 General Electric Capital Corp.
1.429%, due 04/22/04 (G) ................. 900,902
500,000 Merrill Lynch & Co., Inc.
1.780%, due 01/12/04 (G) ................. 501,966
1,000,000 Morgan Stanley Dean Witter
1.675%, due 04/05/04 (G) ................. 1,003,653
-------------
4,872,882
-------------
TELECOMMUNICATION - 2.37%
750,000 BellSouth Corp.
4.160%, due 04/26/04 (C)(G) 770,038
-------------
TOTAL CORPORATE NOTES AND BONDS 6,645,764
(Cost $6,645,764) -------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (A) - 28.68%
FEDERAL HOME LOAN BANK - 10.22%
800,000 4.125%, due 08/15/03 ..................... 806,300
1,500,000 3.125%, due 11/14/03 ..................... 1,514,892
1,000,000 1.250%, due 04/08/04 ..................... 1,000,000
-------------
3,321,192
-------------
FEDERAL HOME LOAN MORTGAGE CORP.- 6.16%
1,000,000 1.113%, due 07/08/03 (G) ................. 999,877
500,000 5.750%, due 07/15/03 ..................... 504,572
490,000 5.125%, due 09/15/03 ..................... 496,774
-------------
2,001,223
-------------
STUDENT LOAN MARKETING ASSOCIATION - 6.16%
2,000,000 1.191%, due 05/15/03 (G) ................. 2,000,000
-------------
U.S.TREASURY BILL - 6.14%
2,000,000 1.155%, due 07/17/03 ..................... 1,995,059
-------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS ....................... 9,317,474
(Cost $9,317,474) -------------
Shares
INVESTMENT COMPANIES - 3.55%
1,000,000 Nations Cash Reserves Fund ............... 1,000,000
154,340 SSgA Prime Money Market Fund ............. 154,340
-------------
TOTAL INVESTMENT COMPANIES 1,154,340
(Cost $1,154,340) -------------
TOTAL INVESTMENTS - 100.01% ............................... 32,490,614
(Cost $32,490,614) -------------
NET OTHER ASSETS AND LIABILITIES - (0.01)% .. ............. (3,633)
-------------
TOTAL NET ASSETS - 100.00% ................................ $ 32,486,981
=============
- -----------------
(A) Rate noted represents annualized yield at time of purchase.
(C) Security sold within the terms of a private placement memorandum exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"qualified institutional investors." The securities have been determined to
be liquid under guidelines established by the Board of Trustees.
(G) Floating rate or variable rate notes.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
BOND FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) 19
Value
Par Value (Note 2)
--------- --------
ASSET BACKED - 4.31%
$ 550,000 ABSC Long Beach Home Equity Trust,
Series 2000-LB1, Class AF5
8.050%, due 09/21/30 ...................... $ 617,125
600,000 Conseco Finance Securitizations Corp.,
Series 2001-1, Class M1
7.535%, due 07/01/32 ...................... 456,000
1,712,596 FMAC Loan Receivables Trust (C)
6.750%, due 12/15/19 ...................... 1,541,336
700,000 Green Tree Home Equity Loan Trust,
Series 1999-A, Class B1
8.970%, due 11/15/27 ...................... 728,390
2,000,000 Long Beach Mortgage Loan Trust, Series
2002-1, Class M3
3.820%, due 05/25/32 ...................... 1,957,761
1,500,000 Oakwood Mortgage Investors, Inc., Series
1999-C, Class M2
8.750%, due 08/15/27 ...................... 990,000
-------------
TOTAL ASSET BACKED ........................ 6,290,612
(Cost $6,744,015) -------------
COMMERCIAL MORTGAGE BACKED - 7.14%
1,200,000 Duke Weeks Industrial Trust, Series
2000-DW1, Class A2 (C)
7.151%, due 10/10/10 ...................... 1,407,219
1,500,000 Morgan Stanley Capital I, Inc., Series
1999-CAM1, Class A3
6.920%, due 03/15/32 ...................... 1,685,558
2,200,000 Morgan Stanley Dean Witter Capital,
Series 2000-LIFE, Class A2
7.570%, due 12/15/09 ...................... 2,631,651
2,000,000 Morgan Stanley Dean Witter Capital,
Series 2000-PRIN, Class A4
7.490%, due 01/23/15 ...................... 2,406,320
1,930,000 Morgan Stanley Dean Witter Capital,
Series 2000-LIF2, Class A2
7.200%, due 10/15/33 ...................... 2,280,509
-------------
TOTAL COMMERCIAL MORTGAGE BACKED .......... 10,411,257
(Cost $9,749,857) -------------
PRIVATE LABEL MORTGAGE BACKED - 2.95%
641,624 Bank of America Funding Corp., Series
2002-1, Class A2
7.000%, due 04/20/32 ...................... 649,830
1,131,027 Bank of America Mortgage Securities,
Inc., Series 2002-9, Class 3A2
6.000%, due 10/25/17 ...................... 1,164,283
1,600,000 Countrywide Alternative Loan Trust,
Series 2002-5, Class A10
6.750%, due 06/25/32 ...................... 1,687,931
786,985 Residential Asset Securitization Trust,
Series 2002-A1, Class A2
5.350%, due 09/25/26 ...................... 792,077
-------------
TOTAL PRIVATE LABEL MORTGAGE BACKED ....... 4,294,121
(Cost $4,218,568) -------------
CORPORATE NOTES AND BONDS - 29.33%
AEROSPACE/DEFENSE - 0.48%
250,000 Lockheed Martin Corp.
7.250%, due 05/15/06 ...................... 283,056
400,000 Raytheon Co.
4.500%, due 11/15/07 ...................... 412,016
-------------
695,072
-------------
BASIC INDUSTRIES - 1.13%
300,000 International Paper Co.
8.125%, due 07/08/05 ...................... 335,934
200,000 International Paper Co.
7.875%, due 08/01/06 ...................... 229,633
1,000,000 Weyerhaeuser Co.
6.875%, due 12/15/33 ...................... 1,076,081
-------------
1,641,648
-------------
BASIC MATERIALS - 0.65%
850,000 Abitibi-Consolidated, Inc.
8.850%, due 08/01/30 ...................... 941,911
-------------
CABLE - 1.03%
500,000 Comcast Corp.
8.375%, due 05/01/07 ...................... 577,560
500,000 Cox Communications, Inc.
6.875%, due 06/15/05 ...................... 546,498
350,000 TCI Communications, Inc.
8.650%, due 09/15/04 ...................... 377,280
-------------
1,501,338
-------------
CAPITAL GOODS - 0.87%
500,000 Bombardier Capital, Inc. (C)
6.125%, due 06/29/06 ...................... 470,000
250,000 Caterpillar Financial Services Corp.
7.590%, due 12/10/03 ...................... 259,286
500,000 United Technologies Corp.
6.625%, due 11/15/04 ...................... 534,804
-------------
1,264,090
-------------
CHEMICALS - 0.74%
1,000,000 Dow Chemical Co.
5.750%, due 12/15/08 ...................... 1,077,572
-------------
COMMUNICATION SERVICES - 0.69%
1,000,000 Clear Channel Communications, Inc.
4.250%, due 05/15/09 ...................... 1,004,320
-------------
CONSUMER STAPLES - 0.99%
750,000 Coca Cola Enterprises, Inc.
4.375%, due 09/15/09 ...................... 782,861
625,000 Safeway, Inc.
6.850%, due 09/15/04 ...................... 662,002
-------------
1,444,863
-------------
ENERGY - 2.17%
500,000 Burlington Resources Finance Co.
5.700%, due 03/01/07 ...................... 543,881
600,000 Conoco, Inc.
5.900%, due 04/15/04 ...................... 623,588
500,000 Occidental Petroleum Corp.
5.875%, due 01/15/07 ...................... 547,640
400,000 Phillips Petroleum Co.
8.500%, due 05/25/05 ...................... 451,720
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
20 BOND FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
Value
Par Value (Note 2)
--------- --------
CORPORATE NOTES AND BONDS (CONTINUED)
ENERGY (CONTINUED)
$ 500,000 Sunoco, Inc.
7.125%, due 03/15/04 ...................... $ 522,434
450,000 Texaco Capital, Inc.
5.700%, due 12/01/08 ...................... 476,510
-------------
3,165,773
-------------
FINANCE - 7.36%
750,000 AARP (C)
7.500%, due 05/01/31 ...................... 898,156
500,000 AIG SunAmerica Global Financing XII (C)
5.300%, due 05/30/07 ...................... 537,482
500,000 American General Finance Corp.
5.750%, due 03/15/07 ...................... 544,672
850,000 Bank America Corp.
4.875%, due 01/15/13 ...................... 872,663
500,000 Bear Stearns Cos., Inc.
7.800%, due 08/15/07 ...................... 590,221
1,000,000 Cendant Corp.
6.250%, due 01/15/08 ...................... 1,068,091
250,000 CIT Group, Inc.
5.570%, due 12/08/03 ...................... 255,115
750,000 Countrywide Home Loans, Inc.
5.250%, due 06/15/04 ...................... 779,394
500,000 General Electric Global Insurance Corp.
7.000%, due 02/15/26 ...................... 530,667
750,000 Goldman Sachs Group, Inc.
5.700%, due 09/01/12 ...................... 798,823
750,000 Household Finance Corp.
6.500%, due 11/15/08 ...................... 836,638
500,000 MBNA America Bank N.A.
6.875%, due 07/15/04 ...................... 526,706
500,000 Merrill Lynch & Co., Inc.
7.375%, due 05/15/06 ...................... 564,571
500,000 U.S. Bank N.A.
6.300%, due 02/04/14 ...................... 568,915
750,000 Wachovia Corp.
4.950%, due 11/01/06 ...................... 806,695
500,000 Washington Mutual Finance
6.250%, due 05/15/06 ...................... 549,775
-------------
10,728,584
-------------
HEALTHCARE - 1.24%
1,000,000 HCA, Inc.
6.870%, due 09/15/03 ...................... 1,013,258
800,000 Tenet Healthcare Corp.
7.375%, due 02/01/13 ...................... 790,000
-------------
1,803,258
-------------
INDUSTRIALS - 3.44%
1,000,000 Daimler Chrysler North America Hl
4.750%, due 01/15/08 ...................... 1,033,055
500,000 Ford Motor Credit Co. (G)
1.508%, due 04/28/05 ...................... 472,171
500,000 Ford Motor Credit Co.
7.600%, due 08/01/05 ...................... 524,153
800,000 General Electric Co.
5.000%, due 02/01/13 ...................... 826,863
500,000 General Motors Acceptance Corp.
6.125%, due 08/28/07 ...................... 519,207
600,000 General Motors Acceptance Corp.
6.875%, due 09/15/11 ...................... 611,512
INDUSTRIALS (CONTINUED)
500,000 Waste Management, Inc.
7.000%, due 10/01/04 ...................... 531,387
450,000 Waste Management, Inc.
6.375%, due 11/15/12 ...................... 498,598
-------------
5,016,946
-------------
PIPELINE - 0.72%
250,000 ENSERCH Corp.
6.375%, due 02/01/04 ...................... 247,500
750,000 Kinder Morgan, Inc.
6.650%, due 03/01/05 ...................... 810,236
-------------
1,057,736
-------------
REITS - 0.89%
500,000 Avalonbay Communities, Inc.
6.580%, due 02/15/04 ...................... 518,667
750,000 EOP Operating LP
6.500%, due 06/15/04 ...................... 786,301
-------------
1,304,968
-------------
TELECOMMUNICATIONS - 2.21%
750,000 Bellsouth Capital Funding Corp.
7.875%, due 02/15/30 ...................... 966,576
750,000 SBC Communications, Inc.
5.875%, due 08/15/12 ...................... 823,993
250,000 Sprint Capital Corp.
7.125%, due 01/30/06 ...................... 263,750
200,000 Telephone & Data Systems, Inc.
7.000%, due 08/01/06 ...................... 209,946
500,000 Verizon Wireless Capital LLC
5.375%, due 12/15/06 ...................... 538,809
400,000 Vodafone Group PLC
6.250%, due 11/30/32 ...................... 427,184
-------------
3,230,258
-------------
TRANSPORTATION - 1.59%
750,000 Burlington Northern Santa Fe Corp.
6.375%, due 12/15/05 ...................... 829,544
750,000 Norfolk Southern Corp.
7.250%, due 02/15/31 ...................... 877,275
600,000 Southwest Airlines Co.
8.750%, due 10/15/03 ...................... 616,478
-------------
2,323,297
-------------
UTILITIES - 3.13%
750,000 DTE Energy Co.
6.450%, due 06/01/06 ...................... 821,497
500,000 Energy East Corp.
8.050%, due 11/15/10 ...................... 594,871
500,000 FirstEnergy Corp., Series A
5.500%, due 11/15/06 ...................... 528,352
750,000 Niagara Mohawk Power Co.
7.750%, due 05/15/06 ...................... 849,748
250,000 Progress Energy, Inc.
7.750%, due 03/01/31 ...................... 304,960
600,000 Virginia Electric & Power Co., Series A
5.750%, due 03/31/06 ...................... 648,068
750,000 Wisconsin Electric Power Co.
6.500%, due 06/01/28 ...................... 820,994
-------------
4,568,490
-------------
TOTAL CORPORATE NOTES AND BONDS ........... 42,770,124
(Cost $40,390,975) -------------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
BOND FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) 21
Value
Par Value (Note 2)
--------- --------
MORTGAGE BACKED - 29.29%
FEDERAL HOME LOAN MORTGAGE CORP.- 7.87%
$ 1,643,028 7.000%, due 07/15/27 Series 1974 Class ZA ...... $ 1,768,642
2,500,000 5.500%, due 05/15/28 Series 2519 Class NG ...... 2,617,926
2,630,000 6.000%, due 02/15/30 Series 2470 Class BA ...... 2,793,536
56,121 8.000%, due 06/01/30 Pool # C01005 ............. 60,588
1,000,000 6.500%, due 07/15/30 Series 2351 Class PX ...... 1,050,836
270,008 7.000%, due 03/01/31 Pool # C48133 ............. 284,865
1,029,105 6.500%, due 01/01/32 Pool # C62333 ............. 1,074,447
1,759,902 6.000%, due 09/01/32 Pool # C70558 ............. 1,832,657
-------------
11,483,497
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 16.62%
515,062 6.100%, due 04/01/11 Pool # 383475 ............. 575,625
2,200,000 5.500%, due 12/25/14 Series 2002-55 Class QC ... 2,308,981
307,796 6.000%, due 05/01/16 Pool # 582558 ............. 322,671
905,971 5.500%, due 09/01/17 Pool # 657335 ............. 943,100
568,399 6.000%, due 05/01/21 Pool # 253847 ............. 594,854
1,928,594 5.500%, due 12/01/22 Pool # 254587 ............. 2,000,220
1,600,000 6.000%, due 03/25/27 Series 1998-63 Class PG ... 1,668,259
1,200,000 6.000%, due 11/01/31 Series 2001-72 Class NC ... 1,248,717
736,552 7.000%, due 11/01/31 Pool # 607515 ............. 778,218
961,360 6.000%, due 02/01/32 Pool # 611619 ............. 1,001,874
1,610,837 6.500%, due 03/01/32 Pool # 631377 ............. 1,683,051
282,561 7.000%, due 05/01/32 Pool # 644591 ............. 298,545
2,996,228 5.500%, due 04/01/33 Pool # 690206 ............. 3,082,931
2,500,000 5.000%, due 12/31/33 TBA (H) ................... 2,564,844
2,500,000 5.500%, due 12/31/33 TBA (H) ................... 2,599,220
2,500,000 5.500%, due 12/31/33 TBA (H) ................... 2,557,031
-------------
24,228,141
-------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 4.80%
86,432 8.000%, due 10/20/15 Pool # 002995 ............. 93,029
1,897,813 6.500%, due 09/20/28 Series 1998-21 Class ZB ... 2,055,885
422,917 6.500%, due 02/20/29 Pool # 2714 ............... 443,139
79,255 7.500%, due 05/20/30 Pool # 2921 ............... 84,150
1,500,000 6.500%, due 08/16/30 Series 2001-10 Class PD ... 1,598,001
165,372 7.500%, due 08/20/30 Pool # 002957 ............. 175,586
411,723 6.500%, due 04/20/31 Pool # 003068 ............. 430,942
2,000,000 6.000%, due 07/20/32 Series 2002-50 Class PE ... 2,122,199
-------------
7,002,931
-------------
TOTAL MORTGAGE BACKED .......................... 42,714,569
(Cost $41,537,630) -------------
U.S.GOVERNMENT AND AGENCY OBLIGATIONS - 24.00%
FEDERAL FARM CREDIT BANK - 0.78%
500,000 6.125%, due 12/29/15 ........................... 571,848
500,000 5.875%, due 10/03/16 ........................... 558,350
-------------
1,130,198
-------------
FEDERAL HOME LOAN MORTGAGE CORP.- 2.89%
2,000,000 6.875%, due 01/15/05 ........................... 2,178,826
1,000,000 4.700%, due 12/06/05 ........................... 1,002,771
250,000 5.375%, due 08/16/06 ........................... 261,312
750,000 5.750%, due 04/29/09 ........................... 778,372
-------------
4,221,281
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 4.60%
1,000,000 5.000%, due 01/20/07 ........................... 1,027,591
2,000,000 5.250%, due 03/22/07 ........................... 2,074,230
2,950,000 6.400%, due 05/14/09 ........................... 3,084,387
500,000 6.250%, due 07/19/11 ........................... 525,036
-------------
6,711,244
-------------
U.S.TREASURY BONDS - 1.14%
500,000 11.125%, due 08/15/03 .......................... 514,414
500,000 9.125%, due 05/15/09 ........................... 540,059
500,000 6.250%, due 05/15/30 ........................... 602,480
-------------
1,656,953
-------------
U.S.TREASURY NOTES - 14.59%
3,000,000 6.500%, due 08/15/05 ........................... 3,328,827
6,100,000 5.750%, due 11/15/05 ........................... 6,704,040
4,000,000 4.625%, due 05/15/06 ........................... 4,308,592
3,000,000 3.500%, due 11/15/06 ........................... 3,127,266
3,000,000 4.750%, due 11/15/08 ........................... 3,262,149
500,000 4.875%, due 02/15/12 ........................... 542,071
-------------
21,272,945
-------------
TOTAL U.S.GOVERNMENT AND
AGENCY OBLIGATIONS ............................. 34,992,621
(Cost $34,261,886) -------------
Shares
INVESTMENT COMPANIES - 23.23%
1,500,000 One Group Institutional Prime Money
Market Fund .................................... 1,500,000
7,170,068 SSgA Prime Money Market Fund ................... 7,170,069
25,198,360 State Street Navigator Securities
Lending Prime Portfolio (I) .................... 25,198,360
-------------
TOTAL INVESTMENT COMPANIES ..................... 33,868,429
(Cost $33,868,429) -------------
OTHER INVESTMENTS (I) - 0.37% .................................. 534,929
(Cost $534,929) -------------
TOTAL INVESTMENTS - 120.62% .................................... 175,876,662
(Cost $171,306,289) -------------
NET OTHER ASSETS AND LIABILITIES - (20.62)% (30,060,499)
-------------
TOTAL NET ASSETS - 100.00% ..................................... $ 145,816,163
=============
- -------------------------
(C) Security sold within the terms of a private placement memorandum exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"qualified institutional investors." The securities have been determined to
be liquid under guidelines established by the Board of Trustees.
(G) Floating rate or variable rate note.
(H) Security purchased on a delayed delivery or when-issued basis.
(I) Represents collateral held in connection with securities lending.
TBA To Be Announced.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
22 HIGH INCOME FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED)
Value
Par Value (Note 2)
--------- --------
ASSET BACKED - 0.29%
INDUSTRIALS - 0.29%
$ 148,079 Continental Airlines, Inc.,
Series 991A, Class B
6.545%, due 02/02/19 ........................... $ 128,713
-------------
TOTAL ASSET BACKED ............................. 128,713
(Cost $129,401) -------------
COMMERCIAL MORTGAGE BACKED - 0.34%
180,000 Commercial Mortgage Acceptance Corp.,
Series 1998-C2, Class F
5.440%, due 09/15/30 ........................... 151,303
-------------
TOTAL COMMERCIAL MORTGAGE BACKED ............... 151,303
(Cost $128,651) -------------
CORPORATE NOTES AND BONDS - 92.92%
AEROSPACE/DEFENSE - 2.39%
125,000 Alliant Techsystems, Inc.
8.500%, due 05/15/11 ........................... 136,250
30,000 Hexcel Corp. (C)
9.875%, due 10/01/08 ........................... 32,100
140,000 K & F Industries, Inc., Series B
9.250%, due 10/15/07 ........................... 145,950
55,000 K & F Industries, Inc.
9.625%, due 12/15/10 ........................... 59,400
385,000 L 3 Communications Corporation
7.625%, due 06/15/12 ........................... 424,463
270,000 Moog, Inc., Series B
10.000%, due 05/01/06 .......................... 270,000
-------------
1,068,163
-------------
BASIC MATERIALS - 4.88%
100,000 Abitibi-Consolidated, Inc.
8.550%, due 08/01/10 ........................... 113,163
37,000 Abitibi-Consolidated, Inc.
8.850%, due 08/01/30 ........................... 41,001
90,000 Buckeye Technologies, Inc.
9.250%, due 09/15/08 ........................... 88,200
255,000 Buckeye Technologies, Inc.
8.000%, due 10/15/10 ........................... 234,600
225,000 Dresser, Inc.
9.375%, due 04/15/11 ........................... 231,750
115,000 FiberMark, Inc.
10.750%, due 04/15/11 .......................... 116,150
105,000 Foamex L P/Foamex Cap Corp.
10.750%, due 04/01/09 .......................... 73,500
30,000 Huntsman International LLC
9.875%, due 03/01/09 ........................... 32,550
665,000 Huntsman International LLC
10.125%, due 07/01/09 .......................... 684,950
117,000 Interface, Inc., Series A
10.375%, due 02/01/10 .......................... 106,470
65,000 Sovereign Specialty Chemicals, Inc.
11.875%, due 03/15/10 .......................... 63,700
BASIC MATERIALS (CONTINUED)
50,000 Specialty Paperboard, Inc.
9.375%, due 10/15/06 ........................... 48,750
340,000 Tembec Industries, Inc.
7.750%, due 03/15/12 ........................... 345,100
-------------
2,179,884
-------------
BUILDING AND CONSTRUCTION - 5.11%
505,000 American Standard, Inc.
7.375%, due 02/01/08 ........................... 545,400
25,000 American Standard, Inc.
7.625%, due 02/15/10 ........................... 27,250
160,000 Atrium Cos., Inc., Series B
10.500%, due 05/01/09 .......................... 168,000
85,000 Corrections Corp. of America
9.875%, due 05/01/09 ........................... 92,650
235,000 D. R. Horton, Inc.
8.000%, due 02/01/09 ........................... 254,975
40,000 D. R. Horton, Inc.
6.875%, due 05/01/13 ........................... 40,900
85,000 Formica Corp., Series B (E)
10.875%, due 03/01/09 .......................... 21,250
415,000 Georgia Pacific Corp. (C)
9.375%, due 02/01/13 ........................... 456,500
55,000 International Wire Group, Inc.
11.750%, due 06/01/05 .......................... 40,700
140,000 Joy Global, Inc., Series B
8.750%, due 03/15/12 ........................... 151,200
150,000 MMI Products, Inc., Series B
11.250%, due 04/15/07 .......................... 112,500
280,000 Nortek, Inc., Series B
9.250%, due 03/15/07 ........................... 288,750
80,000 Nortek, Inc., Series B
8.875%, due 08/01/08 ........................... 82,800
-------------
2,282,875
-------------
CHEMICALS AND DRUGS - 1.85%
150,000 Acetex Corp. (D)
10.875%, due 08/01/09 .......................... 165,000
125,000 Alpharma, Inc.
8.625%, due 05/01/11 ........................... 129,375
60,000 Lyondell Chemical Co., Series A
9.625%, due 05/01/07 ........................... 61,800
15,000 Lyondell Chemical Co., Series B
9.875%, due 05/01/07 ........................... 15,450
175,000 Lyondell Chemical Co.
9.500%, due 12/15/08 ........................... 178,500
50,000 Lyondell Chemical Co.
11.125%, due 07/15/12 .......................... 54,000
150,000 MacDermid, Inc.
9.125%, due 07/15/11 ........................... 166,500
50,000 Noveon, Inc., Series B
11.000%, due 02/28/11 .......................... 56,500
1,597 Sterling Chemicals, Inc.
10.000%, due 12/19/07 PIK ...................... 1,437
-------------
828,562
-------------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
HIGH INCOME FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) 23
Value
Par Value (Note 2)
--------- --------
CORPORATE NOTES AND BONDS (CONTINUED)
COMMUNICATIONS - 5.05%
$ 215,000 Alamosa PCS Holdings, Inc. (B)
12.875%, due 02/15/10 .......................... $ 94,600
130,000 Centennial Cellular Operating Co.
10.750%, due 12/15/08 .......................... 108,550
240,000 Charter Communications Holdings LLC
8.250%, due 04/01/07 ........................... 159,600
530,000 Charter Communications Holdings LLC
8.625%, due 04/01/09 ........................... 348,475
225,000 DIRECTV Holdings LLC (C)
8.375%, due 03/15/13 ........................... 252,000
75,000 Emmis Communications Corp., Series B
8.125%, due 03/15/09 ........................... 79,125
170,000 Emmis Communications Corp. (B)
12.500%, due 03/15/11 .......................... 149,600
15,000 Esprit Telecom Group PLC (D)(E)
10.875%, due 06/15/08 .......................... 2
10,000 Lenfest Communications, Inc.
8.375%, due 11/01/05 ........................... 11,239
35,000 Lenfest Communications, Inc.
10.500%, due 06/15/06 .......................... 41,409
50,000 Lenfest Communications, Inc.
8.250%, due 02/15/08 ........................... 52,782
265,000 Nextel Communications, Inc. (B)
9.950%, due 02/15/08 ........................... 278,250
430,000 Qwest Services Corp. (C)
13.500%, due 12/15/10 .......................... 477,300
175,000 Telewest Communications PLC (B)(D)(E)
9.250%, due 04/15/09 ........................... 35,000
20,000 Telewest Communications PLC (B)(D)(E)
11.375%, due 02/01/10 .......................... 3,700
70,000 Triton PCS Holdings, Inc. (B)
11.000%, due 05/01/08 .......................... 70,175
100,000 Triton PCS, Inc.
8.750%, due 11/15/11 ........................... 93,000
-------------
2,254,807
-------------
CONSUMER CYCLICALS - 0.97%
230,000 Burns Philip Capital Property, Ltd. (C)(D)
9.750%, due 07/15/12 ........................... 230,000
105,000 Dura Operating Corp., Series D
9.000%, due 05/01/09 ........................... 100,275
70,000 Lear Corp., Series B
8.110%, due 05/15/09 ........................... 78,750
65,000 WestPoint Stevens, Inc.
7.875%, due 06/15/05 ........................... 12,675
60,000 WestPoint Stevens, Inc.
7.875%, due 06/15/08 ........................... 11,100
-------------
432,800
-------------
CONSUMER SERVICES - 2.84%
70,000 Iron Mountain, Inc
7.750%, due 01/15/15 ........................... 75,250
425,000 Iron Mountian, Inc.
8.625%, due 04/01/13 ........................... 463,250
155,000 Michael Foods, Inc., Series B
11.750%, due 04/01/11 .......................... 176,700
CONSUMER SERVICES (CONTINUED)
175,000 Roundy's, Inc.
8.875%, due 06/15/12 ........................... 180,250
240,000 United Rentals, Inc., Series B
10.750%, due 04/15/08 .......................... 259,200
90,000 United Rentals, Inc.
9.250%, due 01/15/09 ........................... 86,400
90,000 Venture Holdings Trust, Series B (E)
9.500%, due 07/01/05 ........................... 26,550
-------------
1,267,600
-------------
CONSUMER STAPLES - 1.84%
25,000 Fage Dairy Industries S.A. (D)
9.000%, due 02/01/07 ........................... 24,281
90,000 Finlay Enterprises, Inc.
9.000%, due 05/01/08 ........................... 89,100
45,000 Remington Arms Company, Inc. (C)
10.500%, due 02/01/11 .......................... 48,600
185,000 Samsonite Corp.
10.750%, due 06/15/08 .......................... 174,825
235,000 Sealy Mattress Co., Series B
9.875%, due 12/15/07 ........................... 242,050
225,000 Simmons Co., Series B
10.250%, due 03/15/09 .......................... 243,000
-------------
821,856
-------------
CONTAINERS/PACKAGING - 7.48%
240,000 Ball Corp.
8.250%, due 08/01/08 ........................... 252,000
209,000 Corporacion Durango, S.A., Series A (C)(D)(E)
13.750%, due 07/15/09 .......................... 96,140
210,000 Crown European Holdings S.A. (C)(D)
9.500%, due 03/01/11 ........................... 223,650
40,000 Crown European Holdings S.A. (C)(D)
10.250%, due 03/01/11 .......................... 46,513
135,000 Crown European Holdings S.A.
10.875%, due 03/01/13 .......................... 145,462
75,000 Graphic Packaging Corp.
8.625%, due 02/15/12 ........................... 78,750
125,000 Greif Bros. Corp., Series A
8.875%, due 08/01/12 ........................... 132,500
325,000 Jefferson Smurfit Corp.
8.250%, due 10/01/12 ........................... 353,437
170,000 Kappa Beheer BV (D)
10.625%, due 07/15/09 .......................... 182,113
115,000 Owens Brockway Glass Container, Inc.
8.750%, due 11/15/12 ........................... 122,762
200,000 Owens Brockway Glass Container, Inc. (C)
8.250%, due 05/15/13 ........................... 202,000
295,000 Owens-Brockway Glass Container, Inc.
8.875%, due 02/15/09 ........................... 316,388
35,000 Plastipak Holdings, Inc. (C)
10.750%, due 09/01/11 .......................... 37,800
220,000 Plastipak Holdings, Inc.
10.750%, due 09/01/11 .......................... 237,600
230,000 Pliant Corp.
13.000%, due 06/01/10 .......................... 212,750
415,000 Riverwood International Corp.
10.625%, due 08/01/07 .......................... 433,675
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
24 HIGH INCOME FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
Value
Par Value (Note 2)
- --------- --------
CORPORATE NOTES AND BONDS (CONTINUED)
CONTAINERS/PACKAGING (CONTINUED)
$ 20,000 Riverwood International Corp.
10.875%, due 04/01/08 .......................... $ 20,650
240,000 Silgan Holdings, Inc.
9.000%, due 06/01/09 ........................... 249,600
-------------
3,343,790
-------------
DURABLE GOODS - 1.83%
120,000 American Axle & Manufacturing, Inc.
9.750%, due 03/01/09 ........................... 130,800
80,000 ArvinMeritor, Inc.
8.750%, due 03/01/12 ........................... 86,400
140,000 Collins & Aikman Products
10.750%, due 12/31/11 .......................... 143,500
30,000 Dana Corp.
10.125%, due 03/15/10 .......................... 33,600
140,000 Dana Corp.
9.000%, due 08/15/11 ........................... 151,900
35,000 Delco Remy International, Inc.
8.625%, due 12/15/07 ........................... 31,500
75,000 Hayes Lemmerz International, Inc. (C)(E)
11.875%, due 06/15/06 .......................... 37,500
65,000 Metaldyne Corp.
11.000%, due 06/15/12 .......................... 56,550
85,000 Motors and Gears, Inc., Series D
10.750%, due 11/15/06 .......................... 74,375
65,000 Rexnord Corp. (C)
10.125%, due 12/15/12 .......................... 69,875
-------------
816,000
-------------
ENERGY - 8.97%
150,000 AES Corp.
8.875%, due 02/15/11 ........................... 143,250
135,000 Amerigas Partners L.P.
8.875%, due 05/20/11 ........................... 145,800
160,000 Belden & Blake Corp., Series B
9.875%, due 06/15/07 ........................... 148,800
160,000 Calpine Corp.
8.500%, due 02/15/11 ........................... 116,800
250,000 Centerpoint Energy Resources Corp. (C)
7.875%, due 04/01/13 ........................... 286,875
320,000 Chesapeake Energy Corp.
8.125%, due 04/01/11 ........................... 345,600
115,000 Citgo Petroleum Corp. (C)
11.375%, due 02/01/11 .......................... 128,225
45,000 Continental Resources, Inc.
10.250%, due 08/01/08 .......................... 44,550
170,000 Encore Acquisition Co.
8.375%, due 06/15/12 ........................... 181,050
100,000 Gazprom OAO (C)(D)
9.625%, due 03/01/13 ........................... 106,500
15,000 Grant Prideco, Inc.
9.000%, due 12/15/09 ........................... 16,425
195,000 Hanover Equipment Trust
8.750%, due 09/01/11 ........................... 198,900
75,000 Illinois Power Co.
11.500%, due 12/15/10 .......................... 84,000
ENERGY (CONTINUED)
100,000 Magnum Hunter Resources, Inc.
9.600%, due 03/15/12 ........................... 108,000
63,000 P&L Coal Holdings Corp., Series B
8.875%, due 05/15/08 ........................... 65,914
181,000 Peabody Energy Corp., Series B
9.625%, due 05/15/08 ........................... 190,050
130,000 Peabody Energy Corp. (C)
6.875%, due 03/15/13 ........................... 135,200
69,000 Pemex Project Funding Master
Trust
9.125%, due 10/13/10 ........................... 82,800
60,000 Pioneer Natural Resources Co.
9.625%, due 04/01/10 ........................... 73,792
170,000 Pioneer Natural Resources Co.
7.500%, due 04/15/12 ........................... 193,014
80,000 SESI LLC
8.875%, due 05/15/11 ........................... 84,800
170,000 Southern Natural Gas Co. (C)
8.875%, due 03/15/10 ........................... 187,850
40,000 Stone Energy Corp.
8.250%, due 12/15/11 ........................... 41,700
85,000 TECO Energy, Inc.
10.500%, due 12/01/07 .......................... 96,475
45,000 Tesoro Petroleum Corp. (C)
8.000%, due 04/15/08 ........................... 46,575
125,000 Tesoro Petroleum Corp., Series B
9.000%, due 07/01/08 ........................... 119,375
15,000 Tesoro Petroleum Corp.
9.625%, due 04/01/12 ........................... 14,400
200,000 TXU Corp.
6.375%, due 06/15/06 ........................... 213,000
155,000 Vintage Petroleum, Inc.
8.250%, due 05/01/12 ........................... 165,462
220,000 Westport Resources Corp.
8.250%, due 11/01/11 ........................... 239,800
-------------
4,004,982
-------------
FINANCE - 2.17%
90,000 Ford Motor Credit Co.
7.250%, due 10/25/11 ........................... 90,225
160,000 MDP Acquisitions PLC (C)
9.625%, due 10/01/12 ........................... 173,600
130,000 PCA LLC/ PCA Finance Corp
11.875%, due 08/01/09 .......................... 137,150
310,000 Willis Corroon Corp.
9.000%, due 02/01/09 ........................... 331,700
210,000 Yell Finance BV (D)
10.750%, due 08/01/11 .......................... 235,200
-------------
967,875
-------------
HEALTHCARE SERVICES - 2.38%
235,000 Alliance Imaging, Inc.
10.375%, due 04/15/11 .......................... 220,900
155,000 AmerisourceBergen Corp. (C)
7.250%, due 11/15/12 ........................... 164,300
150,000 Beverly Enterprises, Inc.
9.625%, due 04/15/09 ........................... 132,000
195,000 HCA-Healthcare Co.
7.875%, due 02/01/11 ........................... 219,467
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
HIGH INCOME FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) 25
Value
Par Value (Note 2)
--------- --------
CORPORATE NOTES AND BONDS (CONTINUED)
HEALTHCARE SERVICES (CONTINUED)
$ 35,000 InSight Health Services Corp.
9.875%, due 11/01/11 ........................... $ 32,900
35,000 NDCHealth Corp. (C)
10.500%, due 12/01/12 .......................... 37,100
15,000 Prime Medical Services, Inc.
8.750%, due 04/01/08 ........................... 14,175
130,000 Tenet Healthcare Corp.
6.500%, due 06/01/12 ........................... 123,175
110,000 Triad Hospitals, Inc., Series B
8.750%, due 05/01/09 119,625
-------------
1,063,642
-------------
INDUSTRIALS - 5.91%
23,000 Actuant Corp.
13.000%, due 05/01/09 .......................... 26,910
110,000 Blount, Inc.
7.000%, due 06/15/05 ........................... 99,000
15,000 Blount, Inc.
13.000%, due 08/01/09 .......................... 10,725
140,000 Cascades, Inc. (C)(D)
7.250%, due 02/15/13 ........................... 147,700
55,000 Cummins, Inc. (C)
9.500%, due 12/01/10 ........................... 59,400
195,000 General Binding Corp.
9.375%, due 06/01/08 ........................... 186,225
45,000 HMP Equity Holdings Corp. (C)
0.000%, due 05/15/08 Zero Coupon ............... 21,346
50,000 JLG Industries, Inc. (C)
8.250%, due 05/01/08 ........................... 50,000
365,000 Johnsondiversey, Inc.
9.625%, due 05/15/12 ........................... 402,413
15,000 Johnsondiversey, Inc., Series B (F)
9.625%, due 05/15/12 ........................... 17,610
95,000 Manitowoc Co., Inc. (F)
10.375%, due 05/15/11 .......................... 107,282
95,000 Manitowoc Co., Inc.
10.500%, due 08/01/12 .......................... 103,550
175,000 Navistar International Corp., Series B
9.375%, due 06/01/06 ........................... 186,812
100,000 Ocean Rig ASA (D)
10.250%, due 06/01/08 .......................... 90,000
120,000 SPX Corp.
7.500%, due 01/01/13 ........................... 130,800
110,000 Tenneco Automotive, Inc.
11.625%, due 10/15/09 .......................... 97,350
120,000 TRW Automotive Acquisition Corp. (C)
9.375%, due 02/15/13 ........................... 131,100
50,000 TRW Automotive Acquisition Corp. (C)
11.000%, due 02/15/13 .......................... 54,750
300,000 Tyco Intl Group SA (D)
6.750%, due 02/15/11 ........................... 300,000
340,000 Tyco Intl Group SA (D)
7.000%, due 06/15/28 ........................... 319,600
90,000 Waste Management, Inc.
6.375%, due 11/15/12 ........................... 99,719
-------------
2,642,292
-------------
MACHINERY - 2.13%
295,000 AGCO Corp.
9.500%, due 05/01/08 ........................... 321,550
135,000 Columbus McKinnon Corp.
8.500%, due 04/01/08 ........................... 95,850
75,000 Terex Corp.
8.875%, due 04/01/08 ........................... 78,000
305,000 Terex Corp.
10.375%, due 04/01/11 .......................... 338,550
160,000 Thermadyne Holdings Corp. (B)(E)
12.500%, due 06/01/08 .......................... 16
80,000 Thermadyne Manufacturing LLC / Capital Corp. (E)
9.875%, due 06/01/08............................ 3,300
115,000 Xerox Capital (Europe) PLC (D)
5.875%, due 05/15/04 ........................... 115,863
-------------
953,129
-------------
MEDIA - 7.89%
150,000 Allbritton Communications Co.
7.750%, due 12/15/12 ........................... 156,000
65,000 American Media Operations, Inc., Series B
10.250%, due 05/01/09 .......................... 70,525
120,000 American Media Operations, Inc. (C)
8.875%, due 01/15/11 ........................... 129,900
155,000 AMFM, Inc., Series B
8.000%, due 11/01/08 ........................... 177,475
455,000 Cablevision Systems New York Group, Series B
8.125%, due 08/15/09 ........................... 482,300
210,000 Canwest Media, Inc. (D)
10.625%, due 05/15/11 .......................... 239,400
100,000 CSC Holdings, Inc.
8.125%, due 07/15/09 ........................... 106,000
205,000 Dex Media East LLC (C)
9.875%, due 11/15/09 ........................... 234,725
80,000 Entercom Radio/Capital
7.625%, due 03/01/14 ........................... 86,000
155,000 Lamar Media Corp. (C)
7.250%, due 01/01/13 ........................... 163,138
65,000 LIN Television Corp.
8.000%, due 01/15/08 ........................... 70,200
275,000 MediaCom Broadband LLC
11.000%, due 07/15/13 .......................... 312,812
90,000 MediaCom Capital Co. LLC
9.500%, due 01/15/13 ........................... 96,750
140,000 PRIMEDIA, Inc.
8.875%, due 05/15/11 ........................... 149,800
95,000 Quebecor Media, Inc. (D)
11.125%, due 07/15/11 .......................... 107,825
175,000 Radio One, Inc., Series B
8.875%, due 07/01/11 ........................... 192,500
35,000 RH Donnelley Finance Corp. I (C)
8.875%, due 12/15/10 ........................... 39,200
60,000 RH Donnelley Finance Corp. I (C)
10.875%, due 12/15/12 .......................... 69,450
205,000 Spanish Broadcasting Systems, Inc.
9.625%, due 11/01/09 ........................... 216,787
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
26 HIGH INCOME FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
Value
Par Value (Note 2)
- --------- --------
CORPORATE NOTES AND BONDS (CONTINUED)
MEDIA (CONTINUED)
$ 95,000 Vivendi Universal SA (D)
9.250%, due 04/15/10 ........................... $ 106,638
295,000 Young Broadcasting, Inc., Series A
8.500%, due 12/15/08 ........................... 316,019
-------------
3,523,444
-------------
METALS AND MINING - 1.63%
110,000 Alaska Steel Corp.
7.750%, due 06/15/12 ........................... 96,113
35,000 Century Aluminum Co.
11.750%, due 04/15/08 .......................... 36,225
85,000 Commonwealth Industries, Inc.
10.750%, due 10/01/06 .......................... 86,275
135,000 Compass Minerals Group, Inc.
10.000%, due 08/15/11 .......................... 149,850
34,800 Doe Run Resources Corp.
14.500%, due 11/01/08 .......................... 13,224
95,000 Earle M. Jorgensen Co.
9.750%, due 06/01/12 ........................... 99,750
75,000 Kaiser Aluminum & Chemical Corp. (E)
9.875%, due 02/15/49 ........................... 47,250
50,000 Russel Metals, Inc. (D)
10.000%, due 06/01/09 .......................... 52,750
25,000 Ryerson Tull, Inc., Class A
9.125%, due 07/15/06 ........................... 23,870
60,000 TriMas Corp. (C)
9.875%, due 06/15/12 ........................... 61,800
195,000 WCI Steel, Inc., Series B
10.000%, due 12/01/04 .......................... 60,450
-------------
727,557
-------------
PIPELINE - 3.45%
40,000 ANR Pipeline, Inc. (C)
8.875%, due 03/15/10 ........................... 44,200
195,000 ANR Pipeline, Inc.
9.625%, due 11/01/21 ........................... 219,375
180,000 Dynegy Holdings, Inc
6.875%, due 04/01/11 ........................... 153,000
35,000 Northwest Pipeline Corp. (C)
8.125%, due 03/01/10 ........................... 38,150
325,000 Plains All American Pipeline, L.P.
7.750%, due 10/15/12 ........................... 354,250
775,000 Williams Companies, Inc.
7.125%, due 09/01/11 ........................... 732,375
-------------
1,541,350
-------------
PRINTING - 1.20%
125,000 Hollinger International Publishing, Inc. (C)
9.000%, due 12/15/10 ........................... 133,750
65,000 Hollinger International Publishing, Inc. (C)
11.875%, due 03/01/11 .......................... 69,225
35,000 Houghton Mifflin Co. (C)
8.250%, due 02/01/11 ........................... 37,188
10,000 Houghton Mifflin Co. (C)
9.875%, due 02/01/13 ........................... 10,800
75,000 Mail-Well I Corp.
9.625%, due 03/15/12 ........................... 76,125
200,000 Transwestern Publishing Co., Series F
9.625%, due 11/15/07 ........................... 210,250
-------------
537,338
-------------
RECREATION - 9.63%
170,000 AMC Entertainment, Inc.
9.500%, due 02/01/11 ........................... 177,650
55,000 Ameristar Casinos, Inc.
10.750%, due 02/15/09 .......................... 61,600
210,000 Argosy Gaming Co.
10.750%, due 06/01/09 .......................... 232,050
155,000 Aztar Corp.
8.875%, due 05/15/07 ........................... 161,975
115,000 Boyd Gaming Corp.
9.250%, due 08/01/09 ........................... 126,788
270,000 Coast Hotels and Casinos, Inc.
9.500%, due 04/01/09 ........................... 290,250
180,000 Hilton Hotels Corp.
7.625%, due 12/01/12 ........................... 191,700
410,000 HMH Properties, Inc., Series C
8.450%, due 12/01/08 ........................... 420,250
115,000 Hollywood Park, Inc.
9.500%, due 08/01/07 ........................... 112,700
185,000 Horseshoe Gaming Holding Corp., Series B
8.625%, due 05/15/09 ........................... 196,563
35,000 MGM Mirage, Inc.
9.750%, due 06/01/07 ........................... 39,200
160,000 MGM Mirage, Inc.
8.500%, due 09/15/10 ........................... 179,200
160,000 MGM Mirage, Inc.
8.375%, due 02/01/11 ........................... 174,800
140,000 Park Place Entertainment Corp.
8.875%, due 09/15/08 ........................... 151,200
145,000 Park Place Entertainment Corp.
8.125%, due 05/15/11 ........................... 153,337
130,000 Pinnacle Entertainment, Inc., Series B
9.250%, due 02/15/07 ........................... 127,400
40,000 Premier Parks, Inc.
9.750%, due 06/15/07 ........................... 41,500
135,000 Regal Cinemas, Inc., Series B
9.375%, due 02/01/12 ........................... 148,500
130,000 Six Flags, Inc.
9.750%, due 04/15/13 ........................... 135,525
70,000 Starwood Hotels & Resorts Worldwide, Inc.
7.375%, due 05/01/07 ........................... 73,150
290,000 Starwood Hotels & Resorts Worldwide, Inc.
7.875%, due 05/01/12 ........................... 303,412
150,000 Station Casinos, Inc.
8.375%, due 02/15/08 ........................... 160,875
80,000 Station Casinos, Inc.
8.875%, due 12/01/08 ........................... 84,200
185,000 Station Casinos, Inc.
9.875%, due 07/01/10 ........................... 203,962
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
HIGH INCOME FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) 27
Value
Par Value (Note 2)
- --------- --------
CORPORATE NOTES AND BONDS (CONTINUED)
RECREATION (CONTINUED)
$ 160,000 Vail Resorts, Inc.
8.750%, due 05/15/09 ........................... $ 167,200
170,000 Venetian Casino Resort LLC
11.000%, due 06/15/10 .......................... 186,575
-------------
4,301,562
-------------
RETAIL - 3.84%
180,000 7-Eleven, Inc.
5.000%, due 12/15/03 ........................... 179,100
180,000 Cole National Group, Inc.
8.875%, due 05/15/12 ........................... 164,250
120,000 Dollar General Corp.
8.625%, due 06/15/10 ........................... 130,800
75,000 Finlay Fine Jewelry Corp.
8.375%, due 05/01/08 ........................... 76,500
150,000 Fleming Companies, Inc. (E)
10.125%, due 04/01/08 .......................... 21,375
35,000 Fleming Companies, Inc. (E)
9.250%, due 06/15/10 ........................... 4,988
175,000 Gap, Inc. (B)
10.550%, due 12/15/08 .......................... 208,687
115,000 J Crew Operating Corp.
10.375%, due 10/15/07 .......................... 103,500
40,000 Jitney-Jungle Stores of America, Inc. (E)
12.000%, due 03/01/06 .......................... 4
10,000 Jitney-Jungle Stores of America, Inc. (E)
10.375%, due 09/15/07 .......................... 1
100,000 Rite Aid Corp.
12.500%, due 09/15/06 .......................... 113,000
140,000 Rite Aid Corp. (C)
8.125%, due 05/01/10 ........................... 143,500
60,000 Rite Aid Corp. (C)
9.500%, due 02/15/11 ........................... 63,900
395,000 Williams Scotsman, Inc.
9.875%, due 06/01/07 ........................... 393,025
100,000 Yum! Brands, Inc.
7.700%, due 07/01/12 ........................... 111,250
-------------
1,713,880
-------------
SCHOOLS - 0.32%
145,000 KinderCare Learning Centers, Inc., Series B
9.500%, due 02/15/09 ........................... 142,825
-------------
TECHNOLOGY - 2.55%
35,000 Argo-Tech Corp.
8.625%, due 10/01/07 ........................... 30,800
110,000 Fisher Scientific International, Inc.
8.125%, due 05/01/12 ........................... 118,250
170,000 Fisher Scientific International, Inc. (C)
8.125%, due 05/01/12 ........................... 182,750
240,000 Flextronics International, Ltd. (D)
9.875%, due 07/01/10 ........................... 268,800
400,000 Unisys Corp.
8.125%, due 06/01/06 ........................... 428,000
105,000 Unisys Corp.
7.875%, due 04/01/08 ........................... 109,462
-------------
1,138,062
-------------
TELECOMMUNICATIONS - 3.65%
75,000 American Tower Escrow Corp. (C)
0.000%, due 08/01/08 Zero Coupon ............... 46,875
25,000 Avalon Cable Holdings LLC (B)
11.000%, due 12/01/08 .......................... 23,875
210,000 EchoStar DBS Corp.
10.375%, due 10/01/07 .......................... 235,200
95,000 EchoStar DBS Corp.
9.375%, due 02/01/09 ........................... 102,481
75,000 Energis PLC (D)(E)
9.750%, due 06/15/09 ........................... 0
36,000 Granite Broadcasting Corp.
10.375%, due 05/15/05 .......................... 35,820
220,000 Insight Midwest/Insight Capital, Inc.
9.750%, due 10/01/09 ........................... 235,950
8,285 Jazztel PLC (E)(F)
12.000%, due 10/30/12 .......................... 44
175,000 Lucent Technologies, Inc.
6.450%, due 03/15/29 ........................... 128,625
305,000 Panamsat Corp.
8.500%, due 02/01/12 ........................... 330,163
110,000 Paxson Communications Corp.
10.750%, due 07/15/08 .......................... 121,550
105,000 Paxson Communications Corp. (B)
12.250%, due 01/15/09 .......................... 88,200
90,000 Rural Cellular Corp., Series A
9.750%, due 01/15/10 ........................... 78,300
160,000 Time Warner Telecom, Inc.
10.125%, due 02/01/11 .......................... 133,600
100,245 XM Satellite Radio Holdings, Inc.
14.000%, due 12/31/09 .......................... 70,673
-------------
1,631,356
-------------
TRANSPORTATION - 1.15%
170,000 GulfMark Offshore, Inc.
8.750%, due 06/01/08 ........................... 176,375
135,000 Kansas City Southern Railway Co.
7.500%, due 06/15/09 ........................... 139,725
180,000 Stena AB (D)
9.625%, due 12/01/12 ........................... 198,000
-------------
514,100
-------------
WASTE DISPOSAL - 1.81%
190,000 Allied Waste North America, Inc., Series B
7.625%, due 01/01/06 ........................... 197,125
265,000 Allied Waste North America, Inc., Series B
8.875%, due 04/01/08 ........................... 286,200
165,000 Allied Waste North America, Inc., Series B
10.000%, due 08/01/09 .......................... 176,344
65,000 Allied Waste North America, Inc.
7.875%, due 04/15/13 ........................... 67,600
72,000 Waste Management, Inc.
6.875%, due 05/15/09 ........................... 82,190
-------------
809,459
-------------
TOTAL CORPORATE NOTES AND BONDS .................. 41,509,190
(Cost $40,414,458) -------------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
28 HIGH INCOME FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 0.26%
CAPITAL GOODS - 0.00%
277 IKS Corp. * ................................ $ 3
----------
CHEMICALS AND DRUGS - 0.00%
107 Sterling Chemicals, Inc. * ................. 1,992
----------
DURABLE GOODS - 0.01%
16 Oxford Automotive, Inc. * .................. 3,715
----------
METALS AND MINING - 0.06%
3,191 Metal Management, Inc. * ................... 27,443
----------
TELECOMMUNICATIONS - 0.19%
20 AT&T Canada, Inc., Class A * ............... 540
1,080 AT&T Canada, Inc., Class B * ............... 29,149
325 Completel Europe N.V. EUR .04 * ............ 3,307
2,977 ITC DeltaCom, Inc. * ....................... 5,359
42,946 Jazztel PLC * .............................. 20,647
1,467 NTL, Inc. * ................................ 24,939
480 Versatel Telecom International N.V. * ...... 445
----------
84,386
----------
TOTAL COMMON STOCKS ........................ 117,539
(Cost $740,142) ----------
PREFERRED STOCKS - 0.40%
COMMUNICATION - 0.00%
1 NTL Europe, Inc. * ......................... 3
----------
MEDIA - 0.39%
607 Cablevision Systems Corp., Series M ........ 63,432
1,350 PRIMEDIA, Inc. ............................. 112,725
----------
176,157
----------
TELECOMMUNICATION - 0.01%
3 Completel Europe N.V. * .................... 3,136
----------
TOTAL PREFERRED STOCKS ..................... 179,296
(Cost $199,360) ----------
WARRANTS AND RIGHTS - 0.00%
CHEMICALS AND DRUGS - 0.00%
175 Sterling Chemicals, Inc., Exp.
12/19/2008 * ............................... 2
----------
COMMUNICATION - 0.00%
175 GT Group Telecom, Inc., Exp. 02/1/10 (C) * . 44
----------
FINANCE - 0.00%
150 Ono Finance PLC, Series A (C) * ............ 0
45 Ono Finance PLC, Exp. 02/15/11 (C) * ....... 1
----------
1
----------
TELECOMMUNICATIONS - 0.00%
55 XM Satellite Radio Holdings, Inc., Exp.
03/3/10 * .................................. 5
----------
TOTAL WARRANTS AND RIGHTS .................. 52
(Cost $9,208) ----------
Value
Par Value (Note 2)
--------- --------
FOREIGN GOVERNMENT AND AGENCY OBLIGATIONS - 0.19%
MEXICO - 0.19%
$ 74,000 United Mexican States (D)
8.125%, due 12/30/19 ........................... $ 83,509
-------------
TOTAL FOREIGN GOVERNMENT AND
AGENCY OBLIGATIONS ............................. 83,509
(Cost $78,603) -------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (A) - 6.30%
FEDERAL HOME LOAN BANK - 6.30%
2,813,000 1.250%, due 05/01/03 ........................... 2,813,000
-------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS ............................. 2,813,000
(Cost $2,813,000) -------------
Shares
------
INVESTMENT COMPANIES - 16.66%
2,197 SSgA Prime Money Market Fund ................... 2,197
7,440,290 State Street Navigator Securities
Lending Prime Portfolio (I) .................... 7,440,290
-------------
TOTAL INVESTMENT COMPANIES ..................... 7,442,487
(Cost $7,442,487) -------------
TOTAL INVESTMENTS - 117.36% .................................... 52,425,089
(Cost $51,955,310) -------------
NET OTHER ASSETS AND LIABILITIES - (17.36)% .................... (7,755,481)
-------------
TOTAL NET ASSETS - 100.00% ..................................... $ 44,669,608
=============
* Non-income producing.
(A) Rate noted represents annualized yield at time of purchase.
(B) Represents security that remains a specified coupon until a predetermined
date, at which time the stated rate becomes the effective rate.
(C) Security sold within the terms of a private placement memorandum exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"qualified institutional investors." The securities have been determined to
be liquid under guidelines established by the Board of Trustees.
(D) Notes and bonds, issued by foreign entities, denominated in U.S. dollars.
The aggregate of these securities are 7.56% of total net assets.
(E) In Default.
(F) Notes and bonds, issued by foreign entities, denominated in their local
currencies and converted to U.S. dollars at period end exchange rates.
The aggregate of these securities are 0.28% of total net assets.
(I) Represents collateral held in connection with securities lending.
PIK Payment-In-Kind.
PLC Public Limited Company.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Currency Settlement Date Local Amount Face Amount Value Depreciation
-------- --------------- ------------ ----------- ----- ------------
Euro (sell) 6/16/2003 E (149,453) $ (163,651) $(166,826) $(3,175)
=======
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
BALANCED FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) 29
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 54.17%
CONSUMER DISCRETIONARY - 7.03%
59,100 Carnival Corp. ........................ $ 1,630,569
18,434 Comcast Corp., Class A * .............. 588,229
39,700 Cox Communications, Inc., Class A * ... 1,314,070
40,000 Home Depot, Inc. ...................... 1,125,200
75,900 McDonald's Corp. ...................... 1,297,890
84,100 Target Corp. .......................... 2,812,304
41,500 Tiffany & Co. ......................... 1,151,210
12,300 Wal-Mart Stores, Inc. ................. 692,736
55,100 Walt Disney Co. ....................... 1,028,166
-------------
11,640,374
-------------
CONSUMER STAPLES - 4.65%
25,000 Coca-Cola Co. ......................... 1,010,000
56,100 CVS Corp. ............................. 1,358,181
34,900 General Mills, Inc. ................... 1,574,339
37,900 Kimberly-Clark Corp. .................. 1,886,283
30,400 Safeway, Inc. * ....................... 505,248
81,400 Sara Lee Corp. ........................ 1,365,892
-------------
7,699,943
-------------
ENERGY - 3.44%
25,264 BP PLC, ADR ........................... 973,674
42,500 ExxonMobil Corp. ...................... 1,496,000
11,900 Kerr-McGee Corp. ...................... 501,109
33,400 Marathon Oil Corp. .................... 760,518
25,100 Schlumberger, Ltd. .................... 1,052,443
13,016 Transocean Sedco Forex, Inc. .......... 247,955
24,100 Unocal Corp. .......................... 667,570
-------------
5,699,269
-------------
FINANCIALS - 11.90%
25,000 ACE, Ltd. ............................. 827,000
47,000 Allstate Corp. ........................ 1,776,130
22,000 American International Group, Inc. .... 1,274,900
25,996 Bank of America Corp. ................. 1,925,004
33,690 Bank One Corp. ........................ 1,214,524
16,000 Chubb Corp. ........................... 846,240
65,000 Citigroup, Inc. ....................... 2,551,250
22,000 Fannie Mae ............................ 1,592,580
31,200 FleetBoston Financial Corp. ........... 827,424
10,000 Goldman Sachs Group, Inc. ............. 759,000
35,000 Morgan Stanley Dean Witter & Co. ...... 1,566,250
61,000 Prudential Financial, Inc. ............ 1,950,170
16,100 SunTrust Banks, Inc. .................. 921,242
34,800 Wells Fargo & Co. ..................... 1,679,448
-------------
19,711,162
-------------
HEALTHCARE - 8.27%
17,300 Abbott Laboratories ................... 702,899
42,300 Applera Corp.- Applied Biosystems
Group ............................... 741,519
44,500 Baxter International, Inc. ............ 1,023,500
57,800 Bristol-Myers Squibb Co. .............. 1,476,212
19,400 Genzyme Corp. * ....................... 781,432
39,600 GlaxoSmithKline PLC, ADR .............. 1,604,592
108,700 IMS Health, Inc. ...................... 1,673,980
18,300 MedImmune, Inc. * ..................... 645,441
85,962 Pfizer, Inc. .......................... 2,643,332
55,100 Wyeth ................................. 2,398,503
-------------
13,691,410
-------------
INDUSTRIALS - 6.29%
32,000 Burlington Northern Santa Fe Corp. .... 901,120
43,000 Dover Corp. ........................... 1,235,820
19,000 Emerson Electric Co. .................. 963,300
18,000 FedEx Corp. ........................... 1,077,840
36,000 General Electric Co. .................. 1,060,200
47,000 Honeywell International, Inc. ......... 1,109,200
16,000 Illinois Tool Works, Inc. ............. 1,023,680
30,000 Textron, Inc. ......................... 884,700
20,000 United Technologies Corp. ............. 1,236,200
43,000 Waste Management, Inc. ................ 933,960
-------------
10,426,020
-------------
INFORMATION TECHNOLOGY - 8.05%
26,000 3Com Corp. * .......................... 135,200
87,800 ADC Telecommunications, Inc. * ........ 209,666
18,440 Agilent Technologies, Inc. * .......... 295,409
39,000 Applied Materials, Inc. * ............. 569,400
38,400 Celestica, Inc. * ..................... 443,904
33,200 Computer Sciences Corp. * ............. 1,093,940
74,700 Concord EFS, Inc. * ................... 1,033,101
37,800 EMC Corp. * ........................... 343,602
50,200 Hewlett-Packard Co. ................... 818,260
23,900 International Business Machine Corp.... 2,029,110
69,500 Keane, Inc. * ......................... 669,980
45,838 Koninklijke (Royal) Philips Electronics
N.V., ADR ........................... 856,254
37,400 Micron Technology, Inc. * ............. 317,900
69,200 Microsoft Corp. ....................... 1,769,444
77,700 Motorola, Inc. ........................ 614,607
56,000 PeopleSoft, Inc. * .................... 841,680
16,812 Skyworks Solutions, Inc. * ............ 89,944
47,900 Texas Instruments, Inc. ............... 885,671
14,196 VERITAS Software Corp. * .............. 312,454
-------------
13,329,526
-------------
MATERIALS - 1.56%
23,500 Alcoa, Inc. ........................... 538,855
21,000 E.I. du Pont de Nemours & Co. ......... 893,130
35,000 Rohm and Haas Co. ..................... 1,158,850
-------------
2,590,835
-------------
TELECOMMUNICATION SERVICES - 1.82%
27,000 ALLTEL Corp. .......................... 1,265,220
33,000 SBC Communications, Inc. .............. 770,880
26,020 Verizon Communications, Inc. .......... 972,628
-------------
3,008,728
-------------
UTILITIES - 1.16%
10,000 Ameren Corp. .......................... 409,800
18,000 FPL Group, Inc. ....................... 1,095,660
10,000 Progress Energy, Inc. ................. 417,800
-------------
1,923,260
-------------
TOTAL COMMON STOCKS ................... 89,720,527
(Cost $108,207,327) -------------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
30 BALANCED FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
Value
Par Value (Note 2)
--------- --------
ASSET BACKED - 2.66%
$ 850,000 ABSC Long Beach Home Equity Trust,
Series 2000-LB1, Class AF5
8.050%, due 09/21/30 ........................... $ 953,738
900,000 Conseco Finance Securitizations Corp.,
Series 2001-1, Class M1
7.535%, due 07/01/32 ........................... 684,000
1,000,000 Green Tree Home Equity Loan Trust,
Series 1999-A, Class B1
8.970%, due 11/15/27 ........................... 1,040,557
750,000 Long Beach Mortgage Loan Trust, Series
2002-1, Class M3
3.820%, due 05/25/32 ........................... 734,160
1,500,000 Oakwood Mortgage Investors, Inc., Series
1999-C, Class M2
8.750%, due 08/15/27 ........................... 990,000
-------------
TOTAL ASSET BACKED ............................. 4,402,455
(Cost $4,943,254) -------------
COMMERCIAL MORTGAGE BACKED - 2.73%
$ 800,000 Duke Weeks Industrial Trust, Series
2000-DW1, Class A2 (C)
7.150%, due 10/15/10 ........................... 938,146
1,500,000 Morgan Stanley Capital I, Inc., Series
1999-CAM1, Class A3
6.920%, due 03/15/32 ........................... 1,685,558
1,600,000 Morgan Stanley Dean Witter Capital,
Series 2000-LIF2, Class A2
7.200%, due 10/15/33 ........................... 1,890,578
-------------
TOTAL COMMERCIAL MORTGAGE BACKED ............... 4,514,282
(Cost $4,107,601) -------------
PRIVATE LABEL MORTGAGE BACKED - 1.72%
513,299 Bank of America Funding Corp., Series
2002-1, Class A2
7.000%, due 04/20/32 ........................... 519,865
1,700,000 Countrywide Alternative Loan Trust,
Series 2002-5, Class A10
6.750%, due 06/25/32 ........................... 1,793,427
524,657 Residential Asset Securitization Trust,
Series 2002-A1, Class A2
5.350%, due 09/25/26 ........................... 528,051
-------------
TOTAL PRIVATE LABEL MORTGAGE BACKED ............ 2,841,343
(Cost $2,769,911) -------------
CORPORATE NOTES AND BONDS - 15.73%
AEROSPACE/DEFENSE - 0.24%
350,000 Lockheed Martin Corp.
7.250%, due 05/15/06 ........................... 396,278
-------------
BASIC INDUSTRIES - 0.34%
500,000 International Paper Co.
8.125%, due 07/08/05 ........................... 559,889
-------------
CABLE - 1.00%
500,000 Comcast Corp.
8.375%, due 05/01/07 ........................... 577,560
500,000 Cox Communications, Inc.
6.875%, due 06/15/05 ........................... 546,497
500,000 TCI Communications, Inc.
8.650%, due 09/15/04 ........................... 538,972
-------------
1,663,029
-------------
CAPITAL GOODS - 0.83%
500,000 Bombardier Capital, Inc. (C)
6.125%, due 06/29/06 ........................... 470,000
350,000 Caterpillar Financial Services Corp.
7.590%, due 12/10/03 ........................... 363,000
500,000 United Technologies Corp.
6.625%, due 11/15/04 ........................... 534,805
-------------
1,367,805
-------------
CONSUMER DISCRETIONARY - 0.64%
1,000,000 Cendant Corp.
6.250%, due 03/15/10 ........................... 1,059,215
-------------
CONSUMER STAPLES - 0.32%
500,000 Safeway, Inc.
6.850%, due 09/15/04 ........................... 529,602
-------------
ENERGY - 1.27%
500,000 Occidental Petroleum Corp.
5.875%, due 01/15/07 ........................... 547,640
500,000 Phillips Petroleum Co.
8.500%, due 05/25/05 ........................... 564,650
500,000 Sunoco, Inc.
7.125%, due 03/15/04 ........................... 522,434
450,000 Texaco Capital, Inc.
5.700%, due 12/01/08 ........................... 476,510
-------------
2,111,234
-------------
FINANCE - 2.78%
750,000 AARP (C)
7.500%, due 05/01/31 ........................... 898,156
500,000 American General Finance Corp.
5.750%, due 03/15/07 ........................... 544,671
500,000 Bear Stearns Cos., Inc.
7.800%, due 08/15/07 ........................... 590,221
250,000 CIT Group, Inc.
5.570%, due 12/08/03 ........................... 255,115
350,000 General Electric Global Insurance Corp.
7.000%, due 02/15/26 ........................... 371,467
250,000 Household Finance Corp.
6.500%, due 11/15/08 ........................... 278,880
500,000 MBNA America Bank N.A.
6.875%, due 07/15/04 ........................... 526,706
500,000 Merrill Lynch & Co., Inc.
7.375%, due 05/15/06 ........................... 564,571
500,000 U.S. Bank N.A.
6.300%, due 02/04/14 ........................... 568,915
-------------
4,598,702
-------------
HEALTHCARE - 0.48%
800,000 Tenet Healthcare Corp.
7.375%, due 02/01/13 ........................... 790,000
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
BALANCED FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) 31
Value
Par Value (Note 2)
--------- --------
CORPORATE NOTES AND BONDS (CONTINUED)
INDUSTRIALS - 1.76%
$ 500,000 Ford Motor Credit Co. (G)
1.508%, due 04/28/05 ............................................ $ 472,171
350,000 Ford Motor Credit Co.
7.600%, due 08/01/05 ............................................ 366,907
1,000,000 General Motors Acceptance Corp.
6.125%, due 08/28/07 ............................................ 1,038,415
500,000 General Motors Acceptance Corp.
6.875%, due 09/15/11 ............................................ 509,593
500,000 Waste Management, Inc.
7.000%, due 10/01/04 ............................................ 531,387
-----------
2,918,473
-----------
PIPELINE - 0.42%
650,000 Kinder Morgan, Inc.
6.650%, due 03/01/05 ............................................ 702,205
-----------
REITS - 0.31%
500,000 Avalonbay Communities, Inc.
6.580%, due 02/15/04 ............................................ 518,668
-----------
TELECOMMUNICATIONS - 1.71%
500,000 Bellsouth Capital Funding Corp.
7.875%, due 02/15/30 ............................................ 644,384
750,000 SBC Communications, Inc.
5.875%, due 08/15/12 ............................................ 823,993
250,000 Sprint Capital Corp.
7.125%, due 01/30/06 ............................................ 263,750
537,000 Telephone & Data Systems, Inc.
7.000%, due 08/01/06 ............................................ 563,704
500,000 Verizon Wireless Capital LLC
5.375%, due 12/15/06 ............................................ 538,810
-----------
2,834,641
-----------
TRANSPORTATION - 1.13%
600,000 Burlington Northern Santa Fe Corp.
6.375%, due 12/15/05 ............................................ 663,635
500,000 Norfolk Southern Corp.
7.250%, due 02/15/31 ............................................ 584,850
600,000 Southwest Airlines Co.
8.750%, due 10/15/03 ............................................ 616,478
-----------
1,864,963
-----------
UTILITIES - 2.50%
500,000 DTE Energy Co.
6.450%, due 06/01/06 ............................................ 547,665
500,000 Energy East Corp.
8.050%, due 11/15/10 ............................................ 594,870
500,000 FirstEnergy Corp., Series A
5.500%, due 11/15/06 ............................................ 528,352
750,000 Niagara Mohawk Power Co.
7.750%, due 05/15/06 ............................................ 849,748
350,000 Progress Energy, Inc.
7.750%, due 03/01/31 ............................................ 426,944
350,000 Virginia Electric & Power Co., Series A
5.750%, due 03/31/06 ............................................ 378,040
750,000 Wisconsin Electric Power Co.
6.500%, due 06/01/28 ............................................ 820,994
-----------
4,146,613
-----------
TOTAL CORPORATE NOTES AND BONDS ................................. 26,061,317
(Cost $24,328,297) -----------
MORTGAGE BACKED - 10.86%
FEDERAL HOME LOAN MORTGAGE CORP.- 2.93%
1,643,028 7.000%, due 07/15/27 Series 1974 Class ZA 1,768,642
103,823 8.000%, due 06/01/30 Pool # C01005 .............................. 112,088
1,300,000 6.500%, due 07/15/30 Series 2351 Class PX 1,366,086
1,543,658 6.500%, due 01/01/32 Pool # C62333 .............................. 1,611,670
-----------
4,858,486
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 5.08%
824,098 6.100%, due 04/01/11 Pool # 383475 .............................. 920,999
700,000 5.500%, due 12/25/14 Series 2002-55 Class QC 734,676
461,693 6.000%, due 05/01/16 Pool # 582558 .............................. 484,007
795,759 6.000%, due 05/01/21 Pool # 253847 .............................. 832,795
1,400,000 6.000%, due 03/25/27 Series 1998-63 Class PG 1,459,727
600,000 6.000%, due 11/01/31 Series 2001-72 Class NC 624,358
736,552 7.000%, due 11/01/31 Pool # 607515 .............................. 778,219
640,907 6.000%, due 02/01/32 Pool # 611619 .............................. 667,916
452,098 7.000%, due 05/01/32 Pool # 644591 .............................. 477,672
1,400,000 5.500%, due 12/31/33 TBA (H) .................................... 1,432,375
-----------
8,412,744
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 2.85%
56,534 8.000%, due 10/20/15 Pool # 002995 .............................. 60,850
592,083 6.500%, due 02/20/29 Pool # 2714 ................................ 620,395
158,511 7.500%, due 05/20/30 Pool # 2921 ................................ 168,300
1,800,000 6.500%, due 08/16/30 Series 2001-10 Class PD 1,917,601
165,372 7.500%, due 08/20/30 Pool # 002957 .............................. 175,586
686,205 6.500%, due 04/20/31 Pool # 003068 .............................. 718,236
1,000,000 6.000%, due 07/20/32 Series 2002-50 Class PE 1,061,100
-----------
4,722,068
-----------
TOTAL MORTGAGE BACKED ........................................... 17,993,298
(Cost $17,174,020) -----------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
32 BALANCED FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
Value
Par Value (Note 2)
--------- --------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 9.54%
FEDERAL FARM CREDIT BANK - 1.36%
$ 1,000,000 6.125%, due 12/29/15 .................................. $ 1,143,696
1,000,000 5.875%, due 10/03/16 .................................. 1,116,700
-------------
2,260,396
-------------
FEDERAL HOME LOAN MORTGAGE CORP.- 1.30%
1,000,000 4.700%, due 12/06/05 .................................. 1,002,771
350,000 5.375%, due 08/16/06 .................................. 365,836
750,000 5.750%, due 04/29/09 .................................. 778,372
-------------
2,146,979
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.56
3,050,000 6.400%, due 05/14/09 .................................. 3,188,943
500,000 6.250%, due 07/19/11 .................................. 525,036
500,000 5.250%, due 08/01/12 .................................. 528,817
-------------
4,242,796
-------------
U.S. TREASURY BONDS - 1.99%
1,500,000 11.125%, due 08/15/03 ................................. 1,543,242
500,000 9.125%, due 05/15/09 .................................. 540,059
1,000,000 6.250%, due 05/15/30 .................................. 1,204,961
-------------
3,288,262
-------------
U.S. TREASURY NOTES - 2.33%
2,000,000 6.500%, due 08/15/05 .................................. 2,219,218
1,500,000 5.750%, due 11/15/05 .................................. 1,648,534
-------------
3,867,752
-------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS .................................... 15,806,185
(Cost $15,281,300) -------------
INVESTMENT COMPANIES - 7.85%
4,988,290 SSgA Prime Money Market Fund .......................... 4,988,290
8,020,247 State Street Navigator Securities
Lending Prime Portfolio (I) ........................... 8,020,247
-------------
TOTAL INVESTMENT COMPANIES ............................ 13,008,537
(Cost $13,008,537) -------------
OTHER INVESTMENTS (I) - 0.97% ........................................ 1,604,491
(Cost $1,604,491) -------------
TOTAL INVESTMENTS - 106.23% .......................................... 175,952,435
(Cost $191,424,738) -------------
NET OTHER ASSETS AND LIABILITIES - (6.23)% ........................... (10,323,383)
-------------
TOTAL NET ASSETS - 100.00% ........................................... $ 165,629,052
=============
- -------------------------
* Non-income producing.
(C) Security sold within the terms of a private placement memorandum exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"qualified institutional investors." The securities have been determined
to be liquid under guidelines established by the Board of Trustees.
(G) Floating rate or variable rate note.
(H) Security purchased on a delayed delivery or when-issued basis.
(I) Represents collateral held in connection with securities lending.
ADR American Depository Receipt.
PLC Public Limited Company.
TBA To Be Announced.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
GROWTH AND INCOME FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) 33
Value
Shares (Note 2)
------ ------
COMMON STOCKS - 95.23%
CONSUMER DISCRETIONARY - 11.43%
36,991 Comcast Corp., Class A * .............................. $ 1,180,383
95,300 Home Depot, Inc. ...................................... 2,680,789
149,200 McDonald's Corp. ...................................... 2,551,320
128,300 Target Corp. .......................................... 4,290,352
23,400 Wal-Mart Stores, Inc. ................................. 1,317,888
100,700 Walt Disney Co. ....................................... 1,879,062
-------------
13,899,794
-------------
CONSUMER STAPLES - 7.45%
38,300 General Mills, Inc. ................................... 1,727,713
60,100 Kimberly-Clark Corp. .................................. 2,991,177
99,600 Kroger Co. * .......................................... 1,424,280
174,100 Sara Lee Corp. ........................................ 2,921,398
-------------
9,064,568
-------------
ENERGY - 8.38%
43,206 BP PLC, ADR ........................................... 1,665,159
31,983 ChevronTexaco Corp. ................................... 2,008,852
93,100 ExxonMobil Corp. ...................................... 3,277,120
37,600 Schlumberger, Ltd. .................................... 1,576,568
29,452 Transocean Sedco Forex, Inc. .......................... 561,061
39,800 Unocal Corp. .......................................... 1,102,460
-------------
10,191,220
-------------
FINANCIALS - 25.26%
116,000 Allstate Corp. ........................................ 4,383,640
39,192 Bank of America Corp. ................................. 2,902,168
75,670 Bank One Corp. ........................................ 2,727,903
10 Berkshire Hathaway, Inc., Class A*..................... 698,151
104,966 Citigroup, Inc. ....................................... 4,119,915
37,000 Fannie Mae ............................................ 2,678,430
59,500 FleetBoston Financial Corp. ........................... 1,577,940
54,000 Morgan Stanley Dean Witter & Co. ...................... 2,416,500
130,000 Prudential Financial, Inc. ............................ 4,156,100
38,800 SunTrust Banks, Inc. .................................. 2,220,136
74,300 Wachovia Corp. ........................................ 2,839,003
-------------
30,719,886
-------------
HEALTHCARE - 10.92%
77,300 Baxter International, Inc. ............................ 1,777,900
98,000 Bristol-Myers Squibb Co. .............................. 2,502,920
60,300 GlaxoSmithKline PLC, ADR .............................. 2,443,356
50,800 Merck & Co., Inc. ..................................... 2,955,544
41,440 Pfizer, Inc. .......................................... 1,274,280
53,500 Wyeth ................................................. 2,328,855
-------------
13,282,855
-------------
INDUSTRIALS - 9.58%
34,000 Burlington Northern Santa Fe Corp. .................... 957,440
56,000 Emerson Electric Co. .................................. 2,839,200
127,000 Honeywell International, Inc. ......................... 2,997,200
65,000 Textron, Inc. ......................................... 1,916,850
25,000 United Technologies Corp. ............................. 1,545,250
63,900 Waste Management, Inc. ................................ 1,387,908
-------------
11,643,848
-------------
INFORMATION TECHNOLOGY - 10.86%
58,000 Applied Materials, Inc. * ............................. 846,800
37,400 Automatic Data Processing, Inc. ....................... 1,257,762
67,900 Computer Associates International, Inc................. 1,102,696
41,500 Computer Sciences Corp. * ............................. 1,367,425
82,300 EMC Corp. * ........................................... 748,107
106,321 Hewlett-Packard Co. ................................... 1,733,032
64,300 Intel Corp. ........................................... 1,183,120
31,300 International Business Machine Corp. .................. 2,657,370
150,900 Motorola, Inc. ........................................ 1,193,619
60,400 Texas Instruments, Inc. ............................... 1,116,796
-------------
13,206,727
-------------
MATERIALS - 3.81%
17,000 Alcan, Inc. ........................................... 498,780
30,000 Alcoa, Inc. ........................................... 687,900
39,000 Dow Chemical Co. ...................................... 1,272,960
51,000 E.I. du Pont de Nemours & Co. ......................... 2,169,030
-------------
4,628,670
-------------
TELECOMMUNICATION SERVICES - 4.48%
49,000 ALLTEL Corp. .......................................... 2,296,140
21,393 AT&T Corp. ............................................ 364,751
52,000 SBC Communications, Inc. .............................. 1,214,720
42,020 Verizon Communications, Inc. .......................... 1,570,708
-------------
5,446,319
-------------
UTILITIES - 3.06%
20,000 Ameren Corp. .......................................... 819,600
21,000 Consolidated Edison, Inc. ............................. 816,270
11,000 FPL Group, Inc. ....................................... 669,570
34,000 Progress Energy, Inc. ................................. 1,420,520
-------------
3,725,960
-------------
TOTAL COMMON STOCKS ................................... 115,809,847
(Cost $140,673,419) -------------
INVESTMENT COMPANIES - 2.97%
2,319,428 SSgA Prime Money Market Fund .......................... 2,319,428
1,290,300 State Street Navigator Securities
Lending Prime Portfolio (I) ........................... 1,290,300
-------------
TOTAL INVESTMENT COMPANIES ............................ 3,609,728
(Cost $3,609,728) -------------
TOTAL INVESTMENTS - 98.20% .......................................... 119,419,575
-------------
(Cost $144,283,147)
NET OTHER ASSETS AND LIABILITIES - 1.80% ............................ 2,187,073
-------------
TOTAL NET ASSETS - 100.00% .......................................... $ 121,606,648
=============
- ------------------------
* Non-income producing.
(I) Represents collateral held in connection with securities lending.
ADR American Depository Receipt.
PLC Public Limited Company.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
34 CAPITAL APPRECIATION FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED)
Value
Shares (Note 2)
------ ------
COMMON STOCKS - 96.35%
CONSUMER DISCRETIONARY - 12.63%
53,750 Brinker International, Inc. * ......................... $ 1,706,563
108,100 Carnival Corp. ........................................ 2,982,479
110,100 Cox Communications, Inc., Class A * ................... 3,644,310
348,600 Liberty Media Corp., Class A * ........................ 3,834,600
76,600 Tiffany & Co. ......................................... 2,124,884
-------------
14,292,836
-------------
CONSUMER STAPLES - 7.46%
50,300 Coca-Cola Co. ......................................... 2,032,120
77,000 CVS Corp. ............................................. 1,864,170
67,100 Estee Lauder Cos., Inc., Class A ...................... 2,180,750
48,000 Kraft Foods, Inc., Class A ............................ 1,483,200
53,200 Safeway, Inc. * ....................................... 884,184
-------------
8,444,424
-------------
ENERGY - 5.40%
21,525 Apache Corp. .......................................... 1,232,306
44,000 ConocoPhillips ........................................ 2,213,200
30,600 Marathon Oil Corp. .................................... 696,762
48,800 Weatherford International, Ltd. * ..................... 1,963,224
-------------
6,105,492
-------------
FINANCIALS - 17.53%
56,000 ACE, Ltd. ............................................. 1,852,480
31,000 American International Group, Inc. .................... 1,796,450
52,600 Bank of New York Co., Inc. ............................ 1,391,270
22,000 Chubb Corp. ........................................... 1,163,580
55,000 Freddie Mac ........................................... 3,184,500
16,100 Goldman Sachs Group, Inc. ............................. 1,221,990
40,000 MetLife, Inc. ......................................... 1,149,200
131,200 U.S. Bancorp .......................................... 2,906,080
54,400 Wells Fargo & Co. ..................................... 2,625,344
14,000 XL Capital, Ltd. ...................................... 1,152,200
28,300 Zions Bancorp ......................................... 1,394,341
-------------
19,837,435
-------------
HEALTHCARE - 17.25%
72,200 Abbott Laboratories ................................... 2,933,486
121,300 Applera Corp.- Applied Biosystems Group................ 2,126,389
48,000 Boston Scientific Corp. * ............................. 2,066,400
28,200 Genzyme Corp. * ....................................... 1,135,896
219,800 IMS Health, Inc. ...................................... 3,384,920
35,500 MedImmune, Inc. * ..................................... 1,252,085
150,938 Pfizer, Inc. .......................................... 4,641,344
109,000 Schering-Plough Corp................................... 1,972,900
-------------
19,513,420
-------------
INDUSTRIALS - 11.25%
83,000 Dover Corp. ........................................... 2,385,420
48,000 FedEx Corp. ........................................... 2,874,240
16,800 General Dynamics Corp. ................................ 1,042,776
53,000 General Electric Co. .................................. 1,560,850
53,000 Illinois Tool Works, Inc. ............................. 3,390,940
70,000 Pall Corp. ............................................ 1,478,400
-------------
12,732,626
-------------
INFORMATION TECHNOLOGY - 17.71%
52,700 3Com Corp. * .......................................... 274,040
196,200 ADC Telecommunications, Inc. * ........................ 468,526
81,300 Altera Corp. * ........................................ 1,285,353
248,600 Autodesk, Inc. ........................................ 3,868,216
130,000 Cadence Design Systems, Inc. * ........................ 1,485,900
67,100 Celestica, Inc. * ..................................... 775,676
101,300 Concord EFS, Inc. * ................................... 1,400,979
29,200 Dell Computer Corp. * ................................. 844,172
110,700 EMC Corp. * ........................................... 1,006,263
139,700 Keane, Inc. * ......................................... 1,346,708
32,000 KLA-Tencor Corp. * .................................... 1,312,000
91,200 Micron Technology, Inc. * ............................. 775,200
91,200 Microsoft Corp. ....................................... 2,331,984
142,700 PeopleSoft, Inc. * .................................... 2,144,781
26,624 Skyworks Solutions, Inc. * ............................ 142,438
26,328 VERITAS Software Corp. * .............................. 579,479
-------------
20,041,715
-------------
MATERIALS - 2.24%
22,000 Praxair, Inc. ......................................... 1,277,760
38,000 Rohm and Haas Co. ..................................... 1,258,180
-------------
2,535,940
-------------
TELECOMMUNICATION SERVICES - 3.10%
65,000 BellSouth Corp. ....................................... 1,656,850
63,000 CenturyTel, Inc. ...................................... 1,855,350
-------------
3,512,200
-------------
UTILITIES - 1.78%
33,000 FPL Group, Inc. ....................................... 2,008,709
-------------
TOTAL COMMON STOCKS ................................... 109,024,797
(Cost $124,686,000) -------------
INVESTMENT COMPANIES - 14.23%
4,194,460 SSgA Prime Money Market Fund .......................... 4,194,460
11,908,708 State Street Navigator Securities
Lending Prime Portfolio (I) ........................... 11,908,708
-------------
TOTAL INVESTMENT COMPANIES ............................ 16,103,168
(Cost $16,103,168) -------------
TOTAL INVESTMENTS - 110.58% ......................................... 125,127,965
-------------
(Cost $140,789,168)
NET OTHER ASSETS AND LIABILITIES - (10.58)% ......................... (11,972,852)
-------------
TOTAL NET ASSETS - 100.00% .......................................... $ 113,155,113
=============
- ------------------------
* Non-income producing.
(I) Represents collateral held in connection with securities lending.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUND SEMIANNUAL REPORT APRIL 30, 2003
MID-CAP FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) 35
Value
Shares (Note 2)
------ ------------
COMMON STOCKS - 95.26%
CONSUMER DISCRETIONARY - 15.97%
26,200 Belo Corp., Class A ...................... $ 589,762
4,500 Catalina Marketing Corp. * ............... 80,235
4,900 CEC Entertainment, Inc. * ................ 147,539
17,800 Darden Restaurants, Inc. ................. 311,678
22,900 Ethan Allen Interiors, Inc. .............. 771,272
4,700 Guitar Center, Inc. * .................... 108,852
9,649 Hibbett Sporting Goods, Inc. * ........... 262,067
3,400 Hughes Supply, Inc. ...................... 95,438
31,900 Interpublic Group of Companies, Inc. ..... 363,660
14,600 J. Jill Group, Inc. * .................... 209,510
12,000 Jones Apparel Group, Inc. * .............. 342,240
1,300 Lancaster Colony Corp. ................... 55,549
16,400 Linens 'N Things, Inc. * ................. 347,516
2,700 Meritage Corp. * ......................... 103,005
7,000 Newell Rubbermaid, Inc. .................. 213,360
10,000 O'Reilly Automotive, Inc. * .............. 296,600
7,700 Outback Steakhouse, Inc. ................. 275,198
2,500 Sonic Corp. * ............................ 67,525
6,700 Spartan Motors, Inc. ..................... 62,712
23,200 Talbots, Inc. ............................ 664,680
29,400 Toys "R" Us, Inc. * ...................... 301,350
8,700 Ultimate Electronics, Inc. * ............. 73,515
11,400 WCI Communities, Inc. * .................. 157,662
15,100 Wilsons The Leather Experts, Inc. * ...... 74,745
------------
5,975,670
------------
CONSUMER STAPLES - 4.96%
5,700 Caseys General Stores, Inc. .............. 73,815
43,700 Hain Celestial Group, Inc. * ............. 754,262
21,800 McCormick & Co., Inc. .................... 540,422
6,300 NBTY, Inc. * ............................. 97,650
4,100 Riviana Foods, Inc. ...................... 106,846
4,900 Sensient Technologies Corp. .............. 108,290
4,500 Universal Corp. .......................... 175,725
------------
1,857,010
------------
ENERGY - 6.57%
4,800 Amerada Hess Corp. ....................... 216,720
13,500 BJ Services Co. * ........................ 492,885
1,900 CARBO Ceramics, Inc. ..................... 71,478
1,500 Cimarex Energy Co. * ..................... 29,550
18,300 ENSCO International, Inc. ................ 464,820
12,400 Forest Oil Corp. * ....................... 257,672
2,750 Patina Oil & Gas Corp. ................... 94,958
5,700 Pogo Producing Co. ....................... 225,720
12,800 Smith International, Inc. * .............. 455,168
3,000 St. Mary Land & Exploration Co. .......... 76,860
3,400 Westport Resources Corp. * ............... 70,856
------------
2,456,687
------------
FINANCIALS - 22.12%
5,100 American Capital Strategies, Ltd. ........ 123,726
6,800 AMERIGROUP Corp. * ....................... 198,016
4,100 Arden Realty, Inc. ....................... 97,703
10,940 Associated Banc-Corp ..................... 382,244
5,790 Bank of Bermuda, Ltd. .................... 201,260
11,000 Bear Stearns Co., Inc. ................... 735,240
FINANCIALS (CONTINUED)
2,400 Camden Property Trust .................... 83,880
2,600 Century Bancorp, Inc., Class A ........... 67,132
2,400 Chelsea Property Group, Inc. ............. 95,184
28,100 Colonial BancGroup, Inc. ................. 357,713
10,400 Compass Bancshares, Inc. ................. 350,688
8,000 Countrywide Credit Industries, Inc. ...... 540,800
3,300 Delphi Financial Group, Inc., Class A..... 145,365
2,600 Financial Federal Corp. * ................ 58,240
13,800 FirstMerit Corp. ......................... 282,900
4,600 Getty Realty Corp. ....................... 91,494
21,900 Hibernia Corp., Class A .................. 396,828
4,300 Investment Technology Group, Inc. * ...... 61,447
6,100 IPC Holdings, Ltd. ....................... 209,535
12,000 Jefferson-Pilot Corp. .................... 481,080
13,800 Marshall & Ilsley Corp. .................. 405,996
6,800 Mid-Atlantic Realty Trust ................ 126,004
5,100 Platinum Underwriters Holdings,
Ltd. (Bermuda) ........................... 134,895
14,000 Principal Financial Group, Inc. .......... 407,400
18,000 Protective Life Corp. .................... 517,140
8,000 Radian Group, Inc. ....................... 317,600
5,000 RAIT Investment Trust .................... 112,500
3,800 Reckson Assoc. Realty Corp. .............. 71,630
7,100 Reinsurance Group of America, Inc. ....... 203,415
2,500 RLI Corp. ................................ 73,875
11,700 SAFECO Corp. ............................. 450,567
6,500 Sky Financial Group, Inc. ................ 131,040
6,100 TCF Financial Corp. ...................... 241,560
21,300 Universal American Financial Corp.*....... 124,179
------------
8,278,276
------------
HEALTHCARE - 8.88%
2,700 Amsurg Corp. * ........................... 70,119
33,300 Apogent Technologies, Inc. * ............. 572,094
7,500 Becton, Dickinson & Co. .................. 265,500
7,700 Biogen, Inc. * ........................... 292,523
8,200 Celgene Corp. * .......................... 218,202
2,300 CorVel Corp. * ........................... 71,990
17,300 IDEXX Laboratories, Inc. * ............... 674,700
7,300 MAXIMUS, Inc. * .......................... 175,930
26,200 Omnicare, Inc. ........................... 694,824
14,400 Orthodontic Centers of America, Inc. * ... 83,520
5,500 PolyMedica Corp. ......................... 204,875
------------
3,324,277
------------
INDUSTRIALS - 13.78%
3,900 Albany International Corp., Class A ...... 92,586
6,100 Avery Dennison Corp. ..................... 323,361
2,000 Carlisle Cos., Inc. ...................... 90,720
2,200 Curtiss-Wright Corp., Class B ............ 130,680
9,000 Deswell Industries, Inc. (Hong Kong) ..... 144,090
3,300 Eaton Corp. .............................. 270,831
10,550 Genesee & Wyoming, Inc., Class A * ....... 182,515
9,800 Granite Construction, Inc. ............... 164,640
7,000 Ingersoll-Rand Co., Class A .............. 308,560
6,700 Kadant, Inc. * ........................... 108,875
18,000 Manpower, Inc. ........................... 591,840
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
36 MID-CAP FUND -- PORTFOLIO OF INVESTMENTS (CONTINUED) (UNAUDITED)
Value
Shares (Note 2)
------ ------------
COMMON STOCKS (CONTINUED)
INDUSTRIALS (CONTINUED)
16,000 Mueller Industries, Inc. * ............... $ 408,800
10,000 Parker-Hannifin Corp. .................... 406,800
8,700 Quixote Corp. ............................ 158,688
14,000 R. R. Donnelley & Sons Co. ............... 282,240
27,000 Republic Services, Inc., Class A * ....... 579,420
4,600 Simpson Manufacturing Co., Inc. * ........ 161,552
8,000 Teleflex, Inc. ........................... 307,120
8,900 United Stationers, Inc. * ................ 241,279
3,500 USFreightways Corp. ...................... 99,785
4,500 Werner Enterprises, Inc. ................. 101,655
------------
5,156,037
------------
INFORMATION TECHNOLOGY - 9.41%
22,500 Andrew Corp. * ........................... 172,575
5,000 ANSYS, Inc. * ............................ 132,250
15,100 Arrow Electronics, Inc. * ................ 254,888
45,700 Atmel Corp. * ............................ 84,088
8,600 ATMI, Inc. * ............................. 181,451
3,400 Black Box Corp. .......................... 107,950
21,000 Cable Design Technologies Corp. * ........ 145,110
19,300 Convergys Corp. * ........................ 313,046
8,300 DuPont Photomasks, Inc. * ................ 154,297
10,100 ESS Technology, Inc. * ................... 69,892
23,800 LSI Logic Corp. * ........................ 127,568
9,100 Maxtor Corp. * ........................... 50,050
23,300 McDATA Corp., Class B * .................. 245,116
6,500 Molex, Inc. .............................. 151,710
10,200 Pericom Semiconductor Corp. * ............ 86,496
13,700 Reynolds and Reynolds Co., Class A ....... 394,697
11,600 SunGard Data Systems, Inc. * ............. 249,400
8,900 Synopsys, Inc. * ......................... 432,896
3,800 Technitrol, Inc. ......................... 60,002
4,700 Varian Semiconductor Equipment, Inc. *.... 108,335
------------
3,521,817
------------
MATERIALS - 5.06%
7,300 Air Products & Chemicals, Inc. ........... 314,411
1,700 Florida Rock Industries, Inc. ............ 64,600
9,100 Freeport-McMoRan Copper & Gold,
Inc., Class B ............................ 157,521
21,000 Martin Marietta Materials, Inc. .......... 620,970
19,010 MeadWestvaco Corp. ....................... 448,446
5,800 Sigma-Aldrich Corp. ...................... 288,956
------------
1,894,904
------------
TELECOMMUNICATION SERVICES - 0.55%
7 ,000 CenturyTel, Inc........................... 206,150
------------
UTILITIES - 7.96%
30,000 Alliant Energy Corp. ..................... 526,800
10,000 Ameren Corp. ............................. 409,800
3,100 Black Hills Corp. ........................ 88,288
18,000 Constellation Energy Group, Inc. ......... 527,040
4,400 Peoples Energy Corp. ..................... 170,940
22,000 Pepco Holdings, Inc. ..................... 377,960
7,900 PNM Resources, Inc. ...................... 175,301
1,200 Questar Corp. ............................ 36,240
5,200 WGL Holdings, Inc. ....................... 140,296
20,000 Wisconsin Energy Corp. ................... 526,600
------------
2,979,265
------------
TOTAL COMMON STOCKS....................... 35,650,093
(Cost $37,515,541) ------------
INVESTMENT COMPANIES - 12.63%
1,762,425 SSgA Prime Money Market Fund.............. 1,762,425
2,965,883 State Street Navigator Securities
Lending Prime Portfolio (I)............... 2,965,883
------------
TOTAL INVESTMENT COMPANIES................ 4,728,308
(Cost $4,728,308) ------------
TOTAL INVESTMENTS - 107.89%.......................... 40,378,401
(Cost $42,243,849) ------------
NET OTHER ASSETS AND LIABILITIES - (7.89)% .. (2,953,403)
------------
TOTAL NET ASSETS - 100.00%........................... $ 37,424,998
============
* Non-income producing.
(I) Represents collateral held in connection with securities lending.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
MULTI-CAP GROWTH FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) 37
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 94.92%
CONSUMER DISCRETIONARY - 10.47%
2,200 Abercrombie & Fitch Co., Class A * ..................... $ 72,336
2,670 Clear Channel Communications, Inc.* .................... 104,424
9,500 Comcast Corp.* ........................................ 285,570
2,700 Cumulus Media, Inc., Class A * ......................... 46,548
1,480 GTECH Holdings Corp. * ................................. 49,831
6,420 Hollywood Entertainment Corp. * ........................ 113,955
980 Leapfrog Enterprises, Inc. * ........................... 26,166
5,400 Mattel, Inc. ........................................... 117,396
2,900 Newell Rubbermaid, Inc. ................................ 88,392
1,700 NIKE, Inc., Class B .................................... 91,001
1,675 Pacific Sunwear of California, Inc. * .................. 38,240
560 Quiksilver, Inc. * ..................................... 18,256
2,100 Ryanair Holdings PLC, ADR * ............................ 83,307
8,140 Scientific Games Corp., Class A * ...................... 53,073
10,400 TJX Companies, Inc. .................................... 200,200
7,700 USA Interactive * ...................................... 230,615
-----------
1,619,310
-----------
CONSUMER SERVICES - 9.16%
3,600 Administaff, Inc. * .................................... 23,004
10,100 Apollo Group, Inc., Class A * .......................... 547,410
865 Career Education Corp. * ............................... 52,012
1,750 CNF, Inc. .............................................. 53,095
3,600 Lamar Advertising Co. * ................................ 129,312
9,900 Omnicom Group, Inc. .................................... 612,810
-----------
1,417,643
-----------
CONSUMER STAPLES - 2.00%
910 Panera Bread Co., Class A * ............................ 30,967
2,000 Smithfield Foods, Inc. * ............................... 39,200
8,300 Sysco Corp. ............................................ 238,459
-----------
308,626
-----------
ENERGY - 1.65%
5,830 Chesapeake Energy Corp. ................................ 46,990
2,300 EOG Resources, Inc. .................................... 85,974
6,246 XTO Energy, Inc. ....................................... 121,797
-----------
254,761
-----------
FINANCIALS - 11.96%
8,908 American International Group, Inc. ..................... 516,218
1,130 AMERIGROUP Corp. * ..................................... 32,906
1,470 Arch Capital Group, Ltd. * ............................. 51,171
1,730 Brown & Brown, Inc. .................................... 61,882
17,855 Citigroup, Inc. ........................................ 700,809
1,500 Countrywide Credit Industries, Inc. .................... 101,400
4,350 Freddie Mac ............................................ 251,865
1,600 Legg Mason, Inc. ....................................... 86,880
6,480 Providian Financial Corp. * ............................ 47,757
-----------
1,850,888
-----------
HEALTHCARE - 31.37%
8,300 Abbott Laboratories .................................... 337,229
5,570 Abgenix, Inc. * ........................................ 52,915
1,100 Amsurg Corp. * ......................................... 28,567
1,500 Anthem, Inc. * ......................................... 102,960
13,200 AstraZeneca PLC, ADR ................................... 526,284
1,500 Cephalon, Inc. * ....................................... 61,260
940 CV Therapeutics, Inc. * ................................ 18,781
2,650 Digene Corp. * ......................................... 50,376
1,050 Edwards Lifesciences Corp. * ........................... 30,314
9,390 Eli Lilly & Co. ........................................ 599,270
2,500 Guidant Corp. * ........................................ 97,475
6,500 HCA, Inc. .............................................. 208,650
4,100 Health Management Associates, Inc. ..................... 69,946
10,430 Human Genome Sciences, Inc. * .......................... 121,927
3,900 Laboratory Corporation of America Holdings * ........... 114,894
2,600 McKesson Corp. ......................................... 72,124
1,800 Medicines Co. * ........................................ 36,990
15,510 Millennium Pharmaceuticals, Inc. * ..................... 170,610
2,500 NPS Pharmaceuticals, Inc. * ............................ 47,625
1,680 OSI Pharmaceuticals, Inc. * ............................ 35,280
12,820 Pfizer, Inc. ........................................... 394,215
36,500 Schering-Plough Corp. .................................. 660,650
1,400 St. Jude Medical, Inc. * ............................... 73,444
2,720 VCA Antech, Inc. * ..................................... 45,666
4,500 Waters Corp. * ......................................... 108,045
3,400 Watson Pharmaceuticals, Inc. * ......................... 98,838
6,700 WellPoint Health Networks, Inc. * ...................... 508,798
4,130 Wyeth .................................................. 179,779
-----------
4,852,912
-----------
INDUSTRIALS - 1.32%
9,420 ASE Test, Ltd. * ....................................... 32,405
1,960 Bunge, Ltd. ............................................ 54,900
1,500 PACCAR, Inc. ........................................... 87,615
1,300 STERIS Corp. * ......................................... 29,510
-----------
204,430
-----------
INFORMATION TECHNOLOGY - 22.12%
2,700 Analog Devices, Inc. * ................................. 89,424
1,070 Business Objects S.A., ADR * ........................... 23,251
2,640 CheckFree Corp. * ...................................... 72,785
3,700 DALSA Corp. * .......................................... 44,250
27,900 Dell Computer Corp. * .................................. 806,589
1,700 DSP Group, Inc. ........................................ 35,530
2,950 eBay, Inc. * ........................................... 273,671
300 eResearch Technology, Inc. * ........................... 8,940
19,160 First Data Corp. ....................................... 751,647
2,010 Hyperion Solutions Corp. * ............................. 56,843
7,830 Lexar Media, Inc. * .................................... 37,976
3,300 McDATA Corp., Class A * ................................ 34,914
2,840 MEMC Electronic Materials, Inc. * ...................... 33,682
25,800 Microsoft Corp. ........................................ 659,706
3,130 Nam Tai Electronics, Inc. .............................. 84,823
6,000 Network Appliance, Inc. * .............................. 79,680
3,510 Pericom Semiconductor Corp. * .......................... 29,765
13,680 Red Hat, Inc. * ........................................ 82,080
15,200 VeriSign, Inc. * ....................................... 188,784
3,000 Western Digital Corp. * ................................ 27,990
-----------
3,422,330
-----------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
38 MULTI-CAP GROWTH FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS - 4.64%
17,310 American Tower Corp., Class A * ........................ $ 114,938
6,810 Crown Castle International Corp. * ..................... 43,380
4,930 EchoStar Communications Corp., Class A * ............... 147,703
7,100 Nextel Communications, Inc., Class A * ................. 105,009
4,100 Univision Communications, Inc., Class A * .............. 124,148
4,200 Viacom, Inc., Class B * ................................ 182,322
-----------
717,500
-----------
TRANSPORTATION - 0.23%
1,155 JetBlue Airways Corp. * ................................ 36,302
-----------
TOTAL COMMON STOCKS .................................... 14,684,702
(Cost $13,837,091) -----------
INVESTMENT COMPANIES - 10.36%
700,171 SSgA Prime Money Market Fund ........................... 700,171
902,779 State Street Navigator Securities
Lending Prime Portfolio (I) ............................ 902,779
-----------
TOTAL INVESTMENT COMPANIES ............................. 1,602,950
(Cost $1,602,950) -----------
TOTAL INVESTMENTS - 105.28% ....................................... 16,287,652
-----------
(Cost $15,440,041)
NET OTHER ASSETS AND LIABILITIES - (5.28)% ........................ (816,816)
-----------
TOTAL NET ASSETS - 100.00% ........................................ $15,470,836
===========
- -------------
* Non-income producing.
(I) Represents collateral held in connection with securities lending.
ADR American Depository Receipt.
PLC Public Limited Company.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
INTERNATIONAL STOCK FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) 39
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 95.39%
ARGENTINA - 0.20%
2,644 Tenaris S.A., ADR * .................................... $ 62,134
-----------
AUSTRALIA - 1.77%
72,283 BHP, Ltd. .............................................. 409,216
14,200 John Fairfax Holdings, Ltd. ............................ 27,123
18,100 TABCORP Holdings, Ltd. ................................. 120,152
-----------
556,491
-----------
AUSTRIA - 0.28%
1,100 Erste Bank der oesterreichischen
Sparkassen AG .......................................... 87,201
-----------
BELGIUM - 1.03%
2,400 Ackermans & van Haaren N.V. ............................ 42,935
13,500 Fortis Group ........................................... 227,019
7,899 Solvus S.A. ............................................ 52,991
499 Solvus S.A. Strip VVPR ................................. 6
-----------
322,951
-----------
BRAZIL - 1.97%
3,496 Banco Itau S.A., ADR ................................... 116,417
1,300 Brasil Telecom Participacoes S.A., ADR ................. 46,020
2,900 Brasileira Distribuicao Pao de Acucar, ADR ............. 42,050
4,800 Companhia De Bebidas, ADR .............................. 95,472
3,600 Companhia Vale do Rio Doce, ADR ........................ 100,656
20,400 Copel, ADR ............................................. 66,096
5,400 Embraer Aircraft Corp., ADR ............................ 74,898
12,100 Souza Cruz S.A. ........................................ 75,703
-----------
617,312
-----------
CHILE - 0.49%
6,300 AFP Provida, ADR ....................................... 152,145
-----------
CHINA - 0.83%
9,920 China Mobile HK, Ltd., ADR * ........................... 99,299
5,760 CNOOC, Ltd., ADR ....................................... 151,027
45,000 Sinotrans, Ltd. ........................................ 11,136
-----------
261,462
-----------
CROATIA - 0.43%
9,600 Pliva d.d., GDR (C) .................................... 133,807
-----------
DENMARK - 1.08%
9,300 Novo Nordisk A/S ....................................... 337,428
-----------
EGYPT - 0.39%
9,100 Commercial International Bank of Egypt (C) ............. 48,230
9,300 Egypt Mobile Telecom ................................... 74,431
-----------
122,661
-----------
FINLAND - 2.64%
5,200 Amer Group, Ltd. ....................................... 156,981
29,700 Nokia Oyj .............................................. 503,427
5,000 TietoEnator Oyj ........................................ 83,019
4,400 Vaisala Oyj ............................................ 86,094
-----------
829,521
-----------
FRANCE - 6.21%
7,920 BNP Paribas ............................................ 372,456
3,800 Carbone-Lorraine, S.A. ................................. 96,023
3,900 Carrefour S.A. ......................................... 169,932
3,500 Euronext N.V. .......................................... 77,484
5,300 GrandVision S.A. ....................................... 98,252
6,300 Lagardere S.C.A. ....................................... 241,188
4,300 Neopost S.A. * ......................................... 149,043
3,400 Schneider Electric S.A. * .............................. 161,261
4,030 Total Fina Elf, Series B ............................... 529,449
2,300 Union Financiere de France Banque S.A. ................. 52,564
-----------
1,947,652
-----------
GERMANY - 1.81%
7,000 Bayerische Motoren Werke (BMW) AG ...................... 233,784
3,900 Hawesko Holding AG ..................................... 69,334
1,800 Medion AG .............................................. 67,401
3,100 Siemens AG NPV ......................................... 154,831
4,511 Techem AG * ............................................ 43,376
-----------
568,726
-----------
GREECE - 0.19%
6,590 Greek Organization of Football
Prognostics ............................................ 60,273
-----------
HONG KONG - 2.08%
42,500 CLP Holdings, Ltd. ..................................... 173,835
89,200 Esprit Asia Holdings, Ltd. ............................. 174,991
78,000 Hong Kong and China Gas Co., Ltd. ...................... 92,011
30,000 Shaw Brothers (Hong Kong), Ltd. ........................ 27,311
372,000 Tingyi Holdings Corp. .................................. 67,254
56,500 Yue Yuen Industrial Holdings, Ltd. ..................... 116,636
-----------
652,038
-----------
HUNGARY - 0.70%
1,550 EGIS Rt. ............................................... 54,633
2,280 Gedeon Richter Rt. ..................................... 165,913
-----------
220,546
-----------
INDIA - 1.50%
4,550 Hindalco Industries, Ltd., GDR ......................... 59,356
15,700 Hindustan Lever, Ltd. .................................. 47,893
2,100 Punjab National Bank, Ltd. * ........................... 5,154
17,600 Reliance Industries, Ltd. .............................. 102,245
22,200 Satyam Computer Services ............................... 71,498
31,100 State Bank of India .................................... 183,071
-----------
469,217
-----------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
40 INTERNATIONAL STOCK FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS (CONTINUED)
INDONESIA - 0.84%
302,500 HM Sampoerna Tbk PT .................................... $ 124,683
73,500 Telekomunikasi Indonesia ............................... 34,744
11,200 Telekomunikasi Indonesia, ADR .......................... 103,712
-----------
263,139
-----------
IRELAND - 3.16%
20,816 Allied Irish Banks PLC ................................. 320,023
11,108 Anglo Irish Bank Corp. ................................. 83,710
18,700 Bank of Ireland - Ord .................................. 228,948
14,687 CRH PLC ................................................ 225,796
6,500 DCC PLC ................................................ 80,671
189,809 Uts Waterford Wedgwood ................................. 50,934
-----------
990,082
-----------
ISRAEL - 0.41%
39,800 Bank Hapoalim, Ltd. .................................... 68,826
3,676 Koor Industries, Ltd. * ................................ 59,369
-----------
128,195
-----------
ITALY - 5.53%
18,920 Alleanza Assicurazioni SpA ............................. 177,274
2,500 Davide Campari-Milano SpA .............................. 86,373
32,900 ENI SpA ................................................ 469,751
27,300 Interpump Group SpA .................................... 115,076
8,600 Natuzzi SpA, ADR ....................................... 77,486
4,400 Permasteelisa SpA ...................................... 80,190
51,000 Snam Rete Gas SpA ...................................... 185,325
66,600 Telecom Italia SpA ..................................... 545,088
-----------
1,736,563
-----------
JAPAN - 9.29%
1,900 ACOM Co., Ltd. ......................................... 53,451
2,400 Belluna Co., Ltd. ...................................... 87,874
9,000 Canon, Inc. ............................................ 364,293
47 East Japan Railway Co. ................................. 213,134
2,600 Fanuc, Ltd. ............................................ 106,550
6,000 Hisamitsu Pharmaceutical Co., Inc. ..................... 64,696
2,300 Honda Motor Co., Ltd. .................................. 76,293
15,000 Kao Corp. .............................................. 273,975
2,600 KOSE Corp. ............................................. 82,533
1,500 Meitec Corp. ........................................... 38,168
4,000 Nippon Ceramic Co., Ltd. ............................... 27,712
53,000 Nissan Motor Co., Ltd. ................................. 407,247
3,600 Nissin Kogyo Co., Ltd. ................................. 71,196
110 NTT DoCoMo, Inc. ....................................... 227,242
3,400 Sammy Corp. ............................................ 69,953
3,000 Secom Techno Service Co., Ltd. ......................... 45,348
6,700 Sony Corp. ............................................. 163,168
7,000 Takeda Chemical Industries, Ltd. ....................... 256,886
51,000 Tokyo Gas Co., Ltd. .................................... 166,174
1,200 USS Co., Ltd. .......................................... 61,270
40 Yoshinoya D&C Co., Ltd. ................................ 57,776
-----------
2,914,939
-----------
MEXICO - 2.05%
86,000 America Telecom, S.A. de C.V., Series A1 * ............. 66,965
30,300 Carso Global Telecom, Series A1 * ...................... 34,083
2,954 Cemex S.A., ADR ........................................ 67,499
1,970 Femsa, ADR ............................................. 74,781
41,300 Grupo Financiero Banorte, Series O ..................... 114,659
2,500 Grupo Televisa, S.A. de C.V., ADR * .................... 75,850
26,900 Kimberly-Clark de Mexico, Class A ...................... 65,943
4,700 Telefonos de Mexico, ADR ............................... 141,987
-----------
641,767
-----------
NETHERLANDS - 7.06%
16,700 ABN AMRO Holding N.V. .................................. 282,698
3,500 Boskalis Westminster N.V. .............................. 78,580
2,719 Fugro N.V. ............................................. 110,508
10,021 Heineken N.V. .......................................... 372,773
6,979 Hunter Douglas N.V. .................................... 204,445
1,432 IHC Caland N.V. ........................................ 74,052
5,900 Imtech N.V. ............................................ 85,758
41,300 Koninklijke KPN * ...................................... 275,218
7,563 Philips Electronics N.V. ............................... 140,965
10,000 Royal Dutch Petroleum Co. .............................. 409,784
6,300 Telegraag Holdings ..................................... 108,830
6,078 United Services Group N.V. ............................. 71,356
-----------
2,214,967
-----------
NORWAY - 0.67%
6,300 Ekornes ASA ............................................ 84,684
15,700 Statoil ASA ............................................ 124,602
-----------
209,286
-----------
PERU - 0.21%
7,000 Credicorp, Ltd. ........................................ 66,920
-----------
PHILIPPINES - 0.43%
6,700 Philippine Long Distance Telephone Co.,
ADR * .................................................. 48,575
69,100 San Miguel Corp., Class B .............................. 86,910
-----------
135,485
-----------
RUSSIA - 0.55%
1,455 Lukoil, ADR ............................................ 100,162
4,000 Wimm-Bill-Dann Foods OJSC, ADR * ....................... 73,400
-----------
173,562
-----------
SINGAPORE - 1.21%
27,000 Overseas Chinese Banking Corp., Ltd. ................... 143,823
24,000 United Overseas Bank, Ltd. ............................. 140,695
146,000 Want Want Holdings, Ltd. ............................... 96,360
-----------
380,878
-----------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
INTERNATIONAL STOCK FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) 41
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS (CONTINUED)
SOUTH AFRICA - 3.05%
32,300 ABSA Group, Ltd. ....................................... $ 141,925
1,550 Impala Platinum Holdings, Ltd. ......................... 76,860
68,066 Iscor, Ltd. ............................................ 137,352
38,500 Kumba Resources, Ltd. .................................. 129,925
41,000 Old Mutual ............................................. 60,171
103,700 Sanlam, Ltd. ........................................... 86,132
6,500 Sappi, Ltd. ............................................ 80,490
9,100 Sasol, Ltd. ............................................ 98,885
91,900 Steinhoff International Holdings, Ltd. ................. 67,090
17,800 Telkom South Africa, Ltd. * ............................ 77,207
-----------
956,037
-----------
SOUTH KOREA - 3.37%
1,650 Hite Brewery Co., Ltd. ................................. 82,840
5,586 Kookmin Bank ........................................... 156,776
400 Korea Telecom Corp. .................................... 16,428
6,940 KT Corp., ADR .......................................... 140,466
2,000 LG Household & Health Care, Ltd. ....................... 47,407
700 Pohang Iron & Steel Co., Ltd. .......................... 59,053
2,400 Posco, ADR ............................................. 49,320
2,019 Samsung Electronics, Ltd., GDR (C) ..................... 252,375
2,074 Samsung Fire & Marine Insurance ........................ 102,420
920 Samsung SDI Co., Ltd. .................................. 57,547
6,139 SK Telecom Co., Ltd., ADR .............................. 93,313
-----------
1,057,945
-----------
SPAIN - 3.05%
10,000 Abengoa, S.A. .......................................... 53,222
4,200 Aldeasa, S.A. .......................................... 71,427
12,100 Altadis, S.A. .......................................... 312,520
4,700 Banco Pastor, S.A. ..................................... 103,577
20,166 Endesa, S.A. ........................................... 286,580
10,100 Prosegur, CIA de Seguridad S.A. ........................ 130,997
-----------
958,323
-----------
SWEDEN - 1.52%
8,200 Alfa Laval * ........................................... 80,257
12,160 Elekta AB * ............................................ 132,405
9,100 Eniro AB ............................................... 69,583
7,700 Sandvik AB ............................................. 195,946
-----------
478,191
-----------
SWITZERLAND - 4.77%
44 Bank Sarasin & Cie, Registered, Class B ................ 50,341
15,200 Cie Fin Richemont AG UTS ............................... 224,957
9,700 Credit Suisse Group .................................... 231,984
340 Edipresse, S.A. - Bearer ............................... 109,799
70 Gurit-Heberlein AG ..................................... 36,944
560 Kaba Holding AG, Series B .............................. 79,572
9,200 Novartis AG ............................................ 363,314
8,400 UBS AG * ............................................... 398,996
-----------
1,495,907
-----------
TAIWAN - 1.23%
25,000 Advantech Co., Ltd. .................................... 44,194
10,000 Ambit Microsystems Corp. ............................... 28,600
83,427 Chinatrust Financial Holding Co., Ltd. * ............... 65,226
10,238 Compal Electronics, Inc., GDR .......................... 55,285
29,000 Compal Electronics, Inc. ............................... 31,343
139,000 Fubon Group Co., Ltd. .................................. 95,091
16,100 Quanta Computer, Inc. .................................. 28,229
12,034 United Microelectronics Corp., ADR ..................... 38,990
-----------
386,958
-----------
THAILAND - 0.54%
78,800 Delta Electronics (Thailand) Public Co., Ltd. .......... 50,129
60,100 PTT PLC ................................................ 63,138
19,900 Thai Union Frozen Products Public Co., Ltd. ............ 9,802
94,200 Thai Union Frozen Products Public Co.,
Ltd. - Foreign ......................................... 46,182
-----------
169,251
-----------
TURKEY - 0.11%
29,152 Turkiye Garanti Bankasi A.S., ADR (C)* ................. 35,183
-----------
UNITED KINGDOM - 22.50%
13,096 Amersham PLC ........................................... 94,212
70,300 Barclays PLC ........................................... 486,058
40,600 Boots Group PLC ........................................ 371,791
58,100 BP PLC ................................................. 368,483
12,590 BT Group PLC ........................................... 36,098
43,400 Cadbury Schweppes PLC .................................. 241,930
7,500 Carpetright PLC - Ord .................................. 70,816
14,400 Cattles PLC ............................................ 73,247
24,351 Collins Stewart Holdings PLC ........................... 137,106
6,536 De La Rue PLC .......................................... 23,941
42,900 Diageo PLC ............................................. 476,227
7,788 Euromoney Publications PLC ............................. 29,275
36,314 FKI PLC - Ord .......................................... 43,129
34,100 GlaxoSmithKline PLC .................................... 683,990
59,400 HSBC Holdings PLC ...................................... 651,316
21,300 Imperial Tobacco Group PLC ............................. 356,717
17,300 Intertek Testing Services PLC * ........................ 100,312
27,000 John Wood Group PLC .................................... 67,265
155,400 Kidde PLC .............................................. 178,970
69,800 Kingfisher PLC ......................................... 272,981
14,300 Luminar PLC - Ord ...................................... 80,744
10,673 Man Group PLC .......................................... 180,110
17,700 Northgate PLC - Ord .................................... 118,910
11,200 Royal Bank of Scotland Group PLC ....................... 293,984
4,000 Signet Group PLC, ADR .................................. 161,000
26,333 Singer & Friedlander Group PLC ......................... 52,651
59,500 Tesco PLC .............................................. 188,443
15,800 Trinity Mirror PLC ..................................... 109,937
38,800 Unilever PLC ........................................... 381,685
329,500 Vodafone Group PLC ..................................... 650,909
20,500 William Hill PLC ....................................... 76,566
-----------
7,058,803
-----------
VENEZUELA - 0.24%
7,234 CANTV, ADR ............................................. 75,306
-----------
TOTAL COMMON STOCKS .................................... 29,929,252
(Cost $30,704,843) -----------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
42 INTERNATIONAL STOCK FUND -- PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
Value
Shares (Note 2)
------ --------
PREFERRED STOCKS - 1.02%
BRAZIL - 0.54%
907,100 Caemi Mineracao e Metalurgica S.A. ..................... $ 124,502
3,000,000 Telemar Norte Leste S.A., Class A ...................... 45,754
-----------
170,256
-----------
GERMANY - 0.48%
3,800 Fielmann AG ............................................ 148,707
-----------
TOTAL PREFERRED STOCKS ................................. 318,963
(Cost $282,832) -----------
WARRANTS AND RIGHTS - 0.00%
SINGAPORE - 0.00%
8,200 Want Want Holdings Wts 10/24/04 * ...................... 984
-----------
TOTAL WARRANTS AND RIGHTS .............................. 984
(Cost $205) -----------
Par Value
- ---------
CERTIFICATE OF DEPOSIT - 2.47%
774,386 State Street Eurodollar ................................ 774,386
-----------
TOTAL CERTIFICATE OF DEPOSIT ........................... 774,386
(Cost $774,386) -----------
TOTAL INVESTMENTS - 98.88% ........................................ 31,023,585
(Cost $31,762,266) -----------
NET OTHER ASSETS AND LIABILITIES - 1.12% .......................... 352,392
-----------
TOTAL NET ASSETS - 100.00% ........................................ $31,375,977
===========
- -----------------
* Non-income producing.
(C) Security sold within the terms of a private placement memorandum exempt from
registration under section 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "qualified
institutional investors." The securities have been determined to be liquid
under guidelines established by the Board of Trustees.
ADR American Depository Receipt.
GDR Global Depository Receipt.
PLC Public Limited Company.
OTHER INFORMATION:
Industry Concentration as a Percentage of Net Assets % of Net Assets
---------------
Banks .................................................. 15.55%
Oil & Gas .............................................. 8.91%
Communication Services ................................. 7.50%
Drugs & Healthcare ..................................... 7.34%
Food & Beverages ....................................... 6.99%
Telecommunications ..................................... 5.70%
Retail Trade ........................................... 5.34%
Financial Services ..................................... 4.23%
Mining ................................................. 3.65%
Net Other Assets and Liabilities ....................... 3.59%
Electronics ............................................ 3.24%
Tobacco ................................................ 2.77%
Automobiles ............................................ 2.50%
Business Services ...................................... 2.32%
Household Appliances & Home Furnishings ................ 1.99%
Computers & Business Equipment ......................... 1.88%
Electric Utilities ..................................... 1.68%
Leisure Time ........................................... 1.54%
Manufacturing .......................................... 1.35%
Insurance .............................................. 1.36%
Electrical Equipment ................................... 1.34%
Retail Grocery ......................................... 1.28%
Household Products ..................................... 1.18%
Industrial Machinery ................................... 1.12%
Railroads & Equipment .................................. 1.06%
Construction & Mining Equipment ........................ 0.92%
Chemicals .............................................. 0.71%
Publishing ............................................. 0.66%
Paper .................................................. 0.47%
Conglomerates .......................................... 0.39%
Software ............................................... 0.35%
Gas & Pipeline Utilities ............................... 0.29%
Hotels & Restaurants ................................... 0.34%
Aerospace .............................................. 0.24%
Construction Materials ................................. 0.22%
-------
100.00%
=======
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
43
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[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
44 STATEMENTS OF ASSETS AND LIABILITIES AS OF APRIL 30, 2003 (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------
CASH RESERVES BOND HIGH INCOME
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments:
Investments at cost ............................................ $ 32,490,614 $ 171,306,289 $ 51,955,310
Net unrealized appreciation (depreciation) ..................... -- 4,570,373 469,779
------------- -------------- -------------
Total investments at value ................................ 32,490,614 175,876,662 52,425,089
Cash ............................................................. -- 1,921 --
Foreign currency ($457, $17 and $130,286) ........................ -- -- 457
Receivables:
Investments sold ............................................... -- 4,892,653 361,713
Fund shares sold ............................................... 74,028 799,932 402,493
Dividends and interest ......................................... 79,181 1,679,505 978,896
Due from Advisor, net .......................................... -- -- --
Net unrealized appreciation on forward currency contracts ........ -- -- --
Prepaid insurance and registration fees .......................... 330 2,648 1,130
------------- -------------- -------------
Total Assets ................................................... 32,644,153 183,253,321 54,169,778
------------- -------------- -------------
LIABILITIES:
Net unrealized depreciation on forward currency contracts ........ -- -- 3,175
Payables:
Investments purchased .......................................... -- 11,291,233 1,924,097
Due to Advisor, net ............................................ 2,403 33,624 5,887
Fund shares repurchased ........................................ 131,862 211,907 13,620
Upon return of securities loaned ............................... -- 25,733,289 7,440,290
Administration and transfer agent fees ......................... 11,890 31,297 14,349
Distribution fees - Class B .................................... 10,055 42,460 11,268
Shareholder servicing fees ..................................... -- 29,402 8,753
Trustees'fees .................................................. 151 571 154
Accrued expenses and other payables .............................. 811 63,375 78,577
------------- -------------- -------------
Total Liabilities .............................................. 157,172 37,437,158 9,500,170
------------- -------------- -------------
NET ASSETS ....................................................... $ 32,486,981 $ 145,816,163 $ 44,669,608
============= ============== =============
NET ASSETS CONSIST OF:
Paid-in capital ................................................ $ 32,485,091 $ 140,900,180 $ 50,151,783
Accumulated undistributed (distributions in excess of)
net investment income ........................................ 1,890 (29,927) 17,982
Accumulated net realized gain (loss) on investments sold and
foreign currency related transactions ........................ -- 375,537 (5,967,132)
Net unrealized appreciation (depreciation) of
investments (including appreciation (depreciation) of
foreign currency related transactions) ....................... -- 4,570,373 466,975
------------- -------------- -------------
NET ASSETS ....................................................... $ 32,486,981 $ 145,816,163 $ 44,669,608
============= ============== =============
CLASS A SHARES:
Net assets ..................................................... $ 16,501,520 $ 75,933,614 $ 25,620,741
Shares of beneficial interest outstanding ...................... 16,522,683 7,340,028 3,581,075
NET ASSET VALUE and redemption price per share ................. $ 1.00 $ 10.35 $ 7.15
Sales charge of offering price* ................................ 0.061 0.52 0.36
------------- -------------- -------------
Maximum offering price per share ............................... $ 1.061 $ 10.87 $ 7.51
============= ============== =============
CLASS B SHARES:
Net assets ..................................................... $ 15,985,461 $ 69,882,549 $ 19,048,867
Shares of beneficial interest outstanding ...................... 15,999,939 6,752,953 2,656,521
NET ASSET VALUE and redemption price per share** ............... $ 1.00 $ 10.35 $ 7.17
============= ============== =============
- --------------------
* Sales charge of offering price is 5.75% for the Cash Reserves Fund, 4.75% for
the Bond Fund and High Income Fund, 5.75% for the Balanced Fund, Growth and
Income Fund, Capital Appreciation Fund, Mid-Cap Fund, Multi-Cap Growth Fund,
and International Stock Fund.
** Redemption price per share is equal to the Net Asset Value per share less any
applicable contingent deferred sales charge.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
45
- ----------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH AND CAPITAL MID-CAP MULTI-CAP INTERNATIONAL STOCK
FUND INCOME FUND APPRECIATION FUND FUND GROWTH FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------
$ 191,424,738 $ 144,283,147 $ 140,789,168 $ 42,243,849 $ 15,440,041 $ 31,762,266
(15,472,303) (24,863,572) (15,661,203) (1,865,448) 847,611 (738,681)
- -------------- -------------- -------------- --------------- -------------- ----------------
175,952,435 119,419,575 125,127,965 40,378,401 16,287,652 31,023,585
1,921 -- -- -- -- --
-- -- -- -- 19 130,203
1,893,884 3,580,832 219,931 57,312 101,465 526,827
216,673 190,629 105,243 53,570 34,844 28,638
1,006,432 135,837 -- 32,127 9,992 205,162
-- -- -- -- 7,893 --
-- -- -- -- -- --
2,350 1,649 1,934 776 240 344
- -------------- -------------- -------------- --------------- -------------- ----------------
179,073,695 123,328,522 125,455,073 40,522,186 16,442,105 31,914,759
- -------------- -------------- -------------- --------------- -------------- ----------------
-- -- -- -- -- --
3,315,317 -- -- 59,304 19,002 483,588
56,482 16,920 26,702 10,812 -- 13,936
273,895 259,663 207,813 18,510 14,687 1,502
9,624,738 1,290,300 11,908,708 2,965,883 902,779 --
63,852 79,555 85,020 24,528 22,286 16,166
55,113 41,391 32,435 7,476 3,823 2,698
36,654 24,729 22,528 7,395 2,970 6,206
707 540 484 131 105 96
17,885 8,776 16,270 3,149 5,617 14,590
- -------------- -------------- -------------- --------------- -------------- ----------------
13,444,643 1,721,874 12,299,960 3,097,188 971,269 538,782
- -------------- -------------- -------------- --------------- -------------- ----------------
$ 165,629,052 $ 121,606,648 $ 113,155,113 $ 37,424,998 $ 15,470,836 $ 31,375,977
============== ============== ============== =============== ============== ================
$ 190,420,800 $ 172,412,439 $ 162,180,440 $ 42,359,883 $ 38,204,544 $ 44,122,545
(9,765) 314,139 (137,500) 8,729 (42,486) 102,860
(9,309,680) (26,256,358) (33,226,624) (3,078,166) (23,539,051) (12,119,431)
(15,472,303) (24,863,572) (15,661,203) (1,865,448) 847,829 (729,997)
- -------------- -------------- -------------- --------------- -------------- ----------------
$ 165,629,052 $ 121,606,648 $ 113,155,113 $ 37,424,998 $ 15,470,836 $ 31,375,977
============== ============== ============== =============== ============== ================
$ 73,964,712 $ 52,288,125 $ 58,852,055 $ 24,787,568 $ 8,923,644 $ 26,820,816
7,160,424 5,504,061 5,772,974 2,707,866 2,435,611 3,740,452
$ 10.33 $ 9.50 $ 10.19 $ 9.15 $ 3.66 $ 7.17
0.63 0.58 0.62 0.56 0.22 0.44
- -------------- -------------- -------------- --------------- -------------- ----------------
$ 10.96 $ 10.08 $ 10.81 $ 9.71 $ 3.88 $ 7.61
============== ============== ============== =============== ============== ================
$ 91,664,340 $ 69,318,523 $ 54,303,058 $ 12,637,430 $ 6,547,192 $ 4,555,161
8,867,019 7,387,556 5,529,982 1,401,658 1,829,912 642,890
$ 10.34 $ 9.38 $ 9.82 $ 9.02 $ 3.58 $ 7.09
============== ============== ============== =============== ============== ================
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
46 STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED APRIL 30,2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------
CASH RESERVES BOND HIGH INCOME
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends ............................................................... $ -- $ -- $ 11,265
Interest ................................................................ 238,466 3,196,114 1,695,641
Less:Foreign taxes withheld ........................................... -- -- --
Securities lending income ................................................. -- 13,833 6,273
------------- ------------- -------------
Total investment income ............................................... 238,466 3,209,947 1,713,179
------------- ------------- -------------
EXPENSES:
Management fees ........................................................... 65,661 328,692 104,232
Administration and transfer agent fees .................................... 46,249 151,296 60,365
Registration expenses ..................................................... 12,423 21,633 11,223
Custodian and accounting fees ............................................. 10,429 28,579 34,934
Professional fees ......................................................... 3,582 5,859 5,764
Reports to shareholder expense ............................................ 3,752 14,070 4,039
Trustees' fees ............................................................ 634 2,458 689
Distribution fees - Class B ............................................... 62,615 238,802 62,828
Shareholder servicing fees - Class A ...................................... -- 84,745 26,435
Shareholder servicing fees - Class B ...................................... -- 79,601 20,942
Amortization of organization and offering costs ........................... 1,337 1,337 1,337
Other expenses ............................................................ 1,054 3,042 1,067
------------- ------------- -------------
Total expenses before reimbursement ..................................... 207,736 960,114 333,855
Less reimbursement ...................................................... (54,925) (129,666) (81,516)
------------- ------------- -------------
Total expenses net of reimbursement/waiver .............................. 152,811 830,448 252,339
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) .............................................. 85,655 2,379,499 1,460,840
------------- ------------- -------------
NET UNREALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investments (including net realized gain
on foreign currency related transactions) .............................. -- 966,938 (812,172)
Net change in unrealized appreciation (depreciation) on investments
(including a net unrealized appreciation (depreciation) on foreign
currency related transactions) ........................................ -- 1,350,196 4,188,424
------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ........................................................... -- 2,317,134 3,376,252
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS .......................................................... $ 85,655 $ 4,696,633 $ 4,837,092
============= ============= =============
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
47
- -------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH AND CAPITAL MID-CAP MULTI-CAP INTERNATIONAL STOCK
FUND INCOME FUND APPRECIATION FUND FUND GROWTH FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
$ 879,550 $ 1,492,609 $ 700,617 $ 286,830 $ 61,625 $ 397,711
2,122,195 16,125 15,295 8,384 4,036 2,375
(6,586) (7,368) -- -- (590) (39,189)
7,749 305 8,607 6,986 875 --
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
3,002,908 1,501,671 724,519 302,200 65,946 360,897
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
522,249 338,925 412,957 168,579 53,492 157,665
256,200 293,748 308,183 95,601 80,138 60,445
19,931 16,897 19,900 13,080 12,710 11,064
31,280 20,706 18,782 17,602 19,747 50,198
6,368 5,900 4,202 5,098 4,673 6,475
18,343 14,606 13,095 4,715 1,724 2,912
3,074 2,359 2,101 657 287 558
335,637 260,821 201,289 45,039 22,847 16,806
88,986 67,116 70,556 29,350 10,215 31,937
111,879 86,941 67,096 15,014 7,616 5,602
1,337 1,337 1,337 -- -- 1,337
4,767 4,062 3,561 1,133 591 1,213
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
1,400,051 1,113,418 1,123,059 395,868 214,040 346,212
(180,608) (236,370) (261,040) (102,397) (105,608) (89,155)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
1,219,443 877,048 862,019 293,471 108,432 257,057
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
1,783,465 624,623 (137,500) 8,729 (42,486) 103,840
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(3,697,839) (9,483,999) (13,274,614) (1,251,058) (650,702) (1,362,367)
6,284,102 11,112,632 19,291,061 3,238,458 1,352,290 2,217,480
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
2,586,263 1,628,633 6,016,447 1,987,400 701,588 855,113
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 4,369,728 $ 2,253,256 $ 5,878,947 $ 1,996,129 $ 659,102 $ 958,953
================ ================ ================ ================ ================ ================
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
48 STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CASH RESERVES BOND
FUND FUND
--------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30,2003 YEAR ENDED APRIL 30,2003 YEAR ENDED
(UNAUDITED) OCTOBER 31,2002 (UNAUDITED) OCTOBER 31,2002
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS AT BEGINNING OF PERIOD ............................ $ 34,123,598 $ 21,079,081 $ 123,586,409 $ 59,931,894
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ...................................... 85,655 289,956 2,379,499 3,675,288
Net realized gain (loss) ................................... -- 209 966,938 (196,277)
Net change in unrealized appreciation (depreciation) ....... -- -- 1,350,196 849,052
------------- ------------- ------------- -------------
Net increase in net assets from operations ................. 85,655 290,165 4,696,633 4,328,063
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .................................................. (72,262) (216,708) (1,387,066) (2,039,552)
Class B .................................................. (13,393) (92,098) (1,063,947) (1,671,380)
Net realized gains
Class A .................................................. -- -- -- --
Class B .................................................. -- -- -- --
------------- ------------- ------------- -------------
Total distributions ...................................... (85,655) (308,806) (2,451,013) (3,710,932)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
CLASS A SHARES
Shares sold .............................................. 3,876,230 21,190,375 17,249,941 41,332,553
Issued to shareholders in reinvestment of distributions .. 71,550 210,661 1,146,625 1,786,879
Shares redeemed .......................................... (3,933,689) (16,411,363) (6,702,200) (9,237,828)
------------- ------------- ------------- -------------
Net increase from capital share transactions ............. 14,091 4,989,673 11,694,366 33,881,604
------------- ------------- ------------- -------------
CLASS B SHARES
Shares sold .............................................. 3,975,160 16,212,551 13,719,679 36,680,612
Issued to shareholders in reinvestment of distributions .. 11,971 82,151 979,569 1,538,634
Shares redeemed .......................................... (5,637,839) (8,221,217) (6,409,480) (9,063,466)
------------- ------------- ------------- -------------
Net increase (decrease) from capital share transactions .. (1,650,708) 8,073,485 8,289,768 29,155,780
------------- ------------- ------------- -------------
Total increase (decrease) in net assets ...................... (1,636,617) 13,044,517 22,229,754 63,654,515
------------- ------------- ------------- -------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A) ............... $ 32,486,981 $ 34,123,598 $ 145,816,163 $ 123,586,409
============= ============= ============= =============
(A) Undistributed (distribution in excess of) net
investment income .......................................... $ 1,890 $ 1,890 $ (29,927) $ 41,587
============= ============= ============= =============
OTHER INFORMATION:
CAPITAL SHARE TRANSACTIONS:
CLASS A SHARES
Shares sold .............................................. 3,876,230 21,190,375 1,684,603 4,124,743
Issued to shareholders in reinvestment of distributions .. 71,550 210,661 111,609 178,267
Shares redeemed .......................................... (3,933,689) (16,411,363) (654,651) (920,707)
------------- ------------- ------------- -------------
Net increase in shares outstanding ....................... 14,091 4,989,673 1,141,561 3,382,303
------------- ------------- ------------- -------------
CLASS B SHARES
Shares sold .............................................. 3,975,160 16,212,551 1,338,978 3,656,087
Issued to shareholders in reinvestment of distributions .. 11,971 82,217 95,468 153,439
Shares redeemed .......................................... (5,637,839) (8,221,217) (627,025) (904,228)
------------- ------------- ------------- -------------
Net increase (decrease) in shares outstanding ............ (1,650,708) 8,073,551 807,421 2,905,298
------------- ------------- ------------- -------------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
49
- ------------------------------------------------------------------------------------------------------------------------------
HIGH INCOME BALANCED GROWTH AND INCOME
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30,2003 YEAR ENDED APRIL 30,2003 YEAR ENDED APRIL 30,2003 YEAR ENDED
(UNAUDITED) OCTOBER 31,2002 (UNAUDITED) OCTOBER 31,2002 (UNAUDITED) OCTOBER 31,2002
- ------------------------------------------------------------------------------------------------------------------------------
$ 33,615,728 $ 26,001,418 $ 161,291,500 $ 153,890,837 $ 126,224,262 $ 153,046,513
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
1,460,840 2,400,832 1,783,465 3,616,846 624,623 712,175
(812,172) (2,514,369) (3,697,839) (5,425,164) (9,483,999) (11,682,629)
4,188,424 12,505 6,284,102 (13,885,176) 11,112,632 (15,809,898)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
4,837,092 (101,032) 4,369,728 (15,693,494) 2,253,256 (26,780,352)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(908,752) (1,156,441) (957,981) (1,833,263) (472,121) (292,751)
(652,582) (1,234,221) (864,544) (1,789,041) (174,442) (85,177)
-- -- -- (7,375) -- --
-- -- -- (10,923) -- --
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(1,561,334) (2,390,662) (1,822,525) (3,640,602) (646,563) (377,928)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
6,377,365 9,220,488 9,809,750 28,546,455 6,754,006 22,622,112
614,605 1,013,855 945,730 1,805,389 453,629 281,776
(1,255,096) (1,945,016) (8,321,419) (13,512,339) (9,490,728) (13,557,494)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
5,736,874 8,289,327 2,434,061 16,839,505 (2,283,093) 9,346,394
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
3,516,793 4,644,092 8,750,225 32,020,263 4,159,354 15,766,634
508,903 948,007 846,451 1,750,062 170,360 80,479
(1,984,448) (3,775,422) (10,240,388) (23,875,071) (8,270,928) (24,857,478)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
2,041,248 1,816,677 (643,712) 9,895,254 (3,941,214) (9,010,365)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
11,053,880 7,614,310 4,337,552 7,400,663 (4,617,614) (26,822,251)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 44,669,608 $ 33,615,728 $ 165,629,052 $ 161,291,500 $ 121,606,648 $ 126,224,262
================ ================ ================ ================ ================ ================
$ 17,982 $ 118,476 $ (9,765) $ 29,295 $ 314,139 $ 336,079
================ ================ ================ ================ ================ ================
928,568 1,349,361 970,999 2,551,705 729,388 2,017,774
89,594 145,994 93,364 164,546 48,407 23,066
(183,463) (283,678) (829,589) (1,270,860) (1,024,143) (1,315,343)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
834,699 1,211,677 234,774 1,445,391 (246,348) 725,497
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
510,552 661,204 862,654 2,860,546 451,773 1,405,391
74,062 135,975 83,488 159,002 18,339 6,619
(289,872) (544,269) (1,015,735) (2,234,853) (913,504) (2,391,552)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
294,742 252,910 (69,593) 784,695 (443,392) (979,542)
- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
50 STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL APPRECIATION MID-CAP
FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30,2003 YEAR ENDED APRIL 30,2003 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2002 (UNAUDITED) OCTOBER 31, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS AT BEGINNING OF PERIOD ............................ $ 110,464,831 $ 132,468,254 $ 34,415,066 $ 21,537,383
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) ............................... (137,500) (763,829) 8,729 (22,710)
Net realized loss .......................................... (13,274,614) (18,825,034) (1,251,058) (1,820,724)
Net change in unrealized appreciation (depreciation) ....... 19,291,061 (21,162,999) 3,238,458 (3,749,561)
------------- ------------- ------------- -------------
Net decrease in net assets from operations ................. 5,878,947 (40,751,862) 1,996,129 (5,592,995)
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .................................................. -- -- -- (13,146)
Class B .................................................. -- -- -- --
Net realized gains
Class A .................................................. -- (257,737) -- (673)
Class B .................................................. -- (310,070) -- (289)
------------- ------------- ------------- -------------
Total distributions ...................................... -- (567,807) -- (14,108)
------------- ------------- ------------- -------------
CAPITAL STOCK TRANSACTIONS:
CLASS A SHARES
Shares sold .............................................. 14,910,824 29,009,832 2,381,652 13,525,603
Issued to shareholders in reinvestment of distributions .. -- 239,042 -- 12,087
Shares redeemed .......................................... (15,071,692) (13,187,774) (1,593,245) (2,813,603)
------------- ------------- ------------- -------------
Net increase (decrease) from capital stock transactions .. (160,868) 16,061,100 788,407 10,724,087
------------- ------------- ------------- -------------
CLASS B SHARES
Shares sold .............................................. 3,505,405 19,895,760 1,485,132 10,185,948
Issued to shareholders in reinvestment of distributions .. -- 300,902 -- 284
Shares redeemed .......................................... (6,533,202) (16,941,516) (1,259,736) (2,425,533)
------------- ------------- ------------- -------------
Net increase from capital stock transactions ............. (3,027,797) 3,255,146 225,396 7,760,699
------------- ------------- ------------- -------------
Total increase (decrease) in net assets ...................... 2,690,282 (22,003,423) 3,009,932 12,877,683
------------- ------------- ------------- -------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A) ............... $ 113,155,113 $ 110,464,831 $ 37,424,998 $ 34,415,066
============= ============= ============= =============
(A) Undistributed (distribution in excess of) net
investment income .......................................... $ (137,500) $ -- $ 8,729 $ --
============= ============= ============= =============
OTHER INFORMATION:
CAPITAL SHARE TRANSACTIONS:
CLASS A SHARES
Shares sold .............................................. 1,511,922 2,352,415 271,144 1,305,725
Issued to shareholders in reinvestment of distributions .. -- 17,166 -- 1,123
Shares redeemed .......................................... (1,539,392) (1,237,319) (185,714) (303,588)
------------- ------------- ------------- -------------
Net increase (decrease) in shares outstanding ............ (27,470) 1,132,262 85,430 1,003,260
------------- ------------- ------------- -------------
CLASS B SHARES
Shares sold .............................................. 370,070 1,623,969 170,750 981,301
Issued to shareholders in reinvestment of distributions .. -- 22,155 -- 27
Shares redeemed .......................................... (703,064) (1,605,193) (146,748) (260,248)
------------- ------------- ------------- -------------
Net increase in shares outstanding ....................... (332,994) 40,931 24,002 721,080
------------- ------------- ------------- -------------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
51
- ----------------------------------------------------------------------------------------
MULTI-CAP GROWTH INTERNATIONAL STOCK
FUND FUND
- ----------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30,2003 YEAR ENDED APRIL 30,2003 YEAR ENDED
(UNAUDITED) OCTOBER 31,2002 (UNAUDITED) OCTOBER 31,2002
- ----------------------------------------------------------------------------------------
$ 13,965,505 $ 20,165,733 $ 30,322,989 $ 30,615,597
- ---------------- --------------- ---------------- ---------------
(42,486) (150,673) 103,840 186,711
(650,702) (3,994,374) (1,362,367) (4,860,881)
1,352,290 1,269,174 2,217,480 3,177,444
- ---------------- --------------- ---------------- ---------------
659,102 (2,875,873) 958,953 (1,496,726)
- ---------------- --------------- ---------------- ---------------
-- -- (212,471) --
-- -- (404) --
-- -- -- --
-- -- -- --
- ---------------- --------------- ---------------- ---------------
-- -- (212,875) --
- ---------------- --------------- ---------------- ---------------
1,547,606 5,436,877 662,136 2,504,106
-- -- 206,495 --
(934,925) (9,428,205) (411,007) (1,390,593)
- ---------------- --------------- ---------------- ---------------
612,681 (3,991,328) 457,624 1,113,513
- ---------------- --------------- ---------------- ---------------
1,022,865 2,390,062 399,555 1,157,084
-- -- 393 --
(789,317) (1,723,089) (550,662) (1,066,479)
- ---------------- --------------- ---------------- ---------------
233,548 666,973 (150,714) 90,605
- ---------------- --------------- ---------------- ---------------
1,505,331 (6,200,228) 1,052,988 (292,608)
- ---------------- --------------- ---------------- ---------------
$ 15,470,836 $ 13,965,505 $ 31,375,977 $ 30,322,989
================ =============== ================ ===============
$ (42,486) $ -- $ 102,860 $ 211,895
- ---------------- --------------- ---------------- ---------------
445,508 1,455,729 95,410 327,893
-- -- 29,122 --
(275,846) (2,295,593) (60,373) (185,165)
- ---------------- --------------- ---------------- ---------------
169,662 (839,864) 64,159 142,728
- ---------------- --------------- ---------------- ---------------
299,823 592,071 57,957 148,932
-- -- 56 --
(237,171) (460,827) (81,794) (142,873)
- ---------------- --------------- ---------------- ---------------
62,652 131,244 (23,781) 6,059
- ---------------- --------------- ---------------- ---------------
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
52 FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD
CASH RESERVES FUND
------------------------------------------------------------
SIX MONTHS
ENDED
04/30/03 YEAR ENDED YEAR ENDED YEAR ENDED
(UNAUDITED) 10/31/2002 10/31/2001 10/31/2000
----------- ---------- ---------- ----------
CLASS A
NET ASSET VALUE, Beginning of Period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- -------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .............................. 0.00* 0.01 0.04 0.06
------- -------- ------- ------
Total from investment operations ................. 0.00* 0.01 0.04 0.06
------- -------- ------- ------
LESS DISTRIBUTIONS:
Distributions from net investment income ........... (0.00)* (0.01) (0.04) (0.06)
------- -------- ------- ------
Total distributions .............................. (0.00)* ( 0.01) (0.04) (0.06)
------- -------- ------- ------
Net increase in net asset value ........................ -- -- -- --
------- -------- ------- ------
NET ASSET VALUE, End of Period ......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======== ======= ======
TOTAL RETURN+ .......................................... 0.45%(1) 1.57% 4.50% 5.77%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................... $16,502 $ 16,487 $11,508 $5,104
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor .......... 0.88%(2) 0.99% 1.25% 2.07%
After reimbursement of expenses by Advisor ........... 0.55%(2) 0.55% 0.55% 0.55%
Ratios of net investment income to average net assets:
After reimbursement of expenses by Advisor ........... 0.90%(2) 1.46% 3.96% 5.61%
CLASS B
NET ASSET VALUE, Beginning of Period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- -------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .............................. 0.00* 0.01 0.04 0.05
------- -------- ------- ------
Total from investment operations ................. 0.00* 0.01 0.04 0.05
------- -------- ------- ------
LESS DISTRIBUTIONS:
Distributions from net investment income ........... (0.00)* (0.01) (0.04) (0.05)
------- -------- ------- ------
Total distributions .............................. (0.00)* (0.01) (0.04) (0.05)
------- -------- ------- ------
Net increase in net asset value ........................ -- -- -- --
------- -------- ------- ------
NET ASSET VALUE, End of Period ......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======== ======= ======
TOTAL RETURN+ .......................................... 0.08%(1) 0.81% 3.72% 4.97%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................... $15,985 $ 17,636 $ 9,571 $2,865
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor .......... 1.63%(2) 1.74% 2.00% 2.82%
After reimbursement of expenses by Advisor ........... 1.30%(2)** 1.30% 1.30% 1.30%
Ratios of net investment income (loss) to average
net assets:
After reimbursement of expenses by Advisor ........... 0.15%(2)** 0.71% 3.21% 4.86%
CASH RESERVES FUND
---------------------------
YEAR ENDED INCEPTION(A)
10/31/1999 TO 10/31/1998
---------- -------------
CLASS A
NET ASSET VALUE, Beginning of Period ................... $ 1.00 $ 1.00
------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .............................. 0.05 0.04
------ ------
Total from investment operations ................. 0.05 0.04
------ ------
LESS DISTRIBUTIONS:
Distributions from net investment income ........... (0.05) (0.04)
------ ------
Total distributions .............................. (0.05) (0.04)
------ ------
Net increase in net asset value ........................ -- --
------ ------
NET ASSET VALUE, End of Period ......................... $ 1.00 $ 1.00
====== ======
TOTAL RETURN+ .......................................... 4.60% 4.21%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................... $4,481 $4,339
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor .......... 2.63% 4.76%(2)
After reimbursement of expenses by Advisor ........... 0.55% 0.55%(2)
Ratios of net investment income to average net assets:
After reimbursement of expenses by Advisor ........... 4.41% 4.88%(2)
CLASS B
NET ASSET VALUE, Beginning of Period ................... $ 1.00 $ 1.00
------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .............................. 0.04 0.03
------ ------
Total from investment operations ................. 0.04 0.03
------ ------
LESS DISTRIBUTIONS:
Distributions from net investment income ........... (0.04) (0.03)
------ ------
Total distributions .............................. (0.04) (0.03)
------ ------
Net increase in net asset value ........................ -- --
------ ------
NET ASSET VALUE, End of Period ......................... $ 1.00 $ 1.00
====== ======
TOTAL RETURN+ .......................................... 3.81% 3.50%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................... $3,501 $ 894
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor .......... 3.38% 5.51%(2)
After reimbursement of expenses by Advisor ........... 1.30% 1.30%(2)
Ratios of net investment income (loss) to average
net assets:
After reimbursement of expenses by Advisor ........... 3.92% 4.13%(2)
- ------------------------------------
(1) Not annualized
(2) Annualized
+ Total return without applicable sales charge.
(a) Fund commenced investment operations on December 29, 1997.
* Amounts represents less than $0.005 per share.
** During the period, the Investment Advisor agreed to waive certain
distribution fee expenses specifically attributable to Class B Shares.
These amounts are in addition to those required by the Fund's contractual
expense limitations. Had these amounts not been waived, the ratios of
expenses and net investment income, both after reimbursement, would have
been 1.30% and 0.15%, respectively.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING 53
THROUGHOUT EACH PERIOD
BOND FUND
----------------------------------------------------------------------------
SIX MONTHS
ENDED INCEPTION
04/30/03 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (a) TO
(UNAUDITED) 10/31/2002 10/31/2001 10/31/2000 10/31/1999 10/31/1998
----------- ---------- ---------- ---------- ---------- ----------
CLASS A
NET ASSET VALUE, Beginning of Period ................. $ 10.17 $ 10.23 $ 9.57 $ 9.74 $ 10.14 $ 10.00
-------- ---------- -------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................ 0.20 0.47 0.55 0.63 0.51 0.45
Net realized and unrealized gain
(loss) on investments ........................ 0.19 (0.06)(c) 0.67 (0.17) (0.35) 0.14
-------- ---------- -------- ------- ------- -------
Total from investment operations ............... 0.39 0.41 1.22 0.46 0.16 0.59
-------- ---------- -------- ------- ------- -------
LESS DISTRIBUTIONS:
Distributions from net investment income ......... (0.21) (0.47) (0.56) (0.63) (0.51) (0.45)
Distributions from capital gains ................. -- -- -- -- (0.05) --
-------- ---------- -------- ------- ------- -------
Total distributions ............................ (0.21) (0.47) (0.56) (0.63) (0.56) (0.45)
-------- ---------- -------- ------- ------- -------
Net increase (decrease) in net asset value ........... 0.18 (0.06) 0.66 (0.17) (0.40) 0.14
-------- ---------- -------- ------- ------- -------
NET ASSET VALUE, End of Period ....................... $ 10.35 $ 10.17 $ 10.23 $ 9.57 $ 9.74 $ 10.14
======== ========== ======== ======= ======= =======
TOTAL RETURN+ ........................................ 3.85%(1) 4.21% 13.07% 4.89% 1.60% 6.08%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................. $ 75,934 $ 63,069 $ 28,813 $ 13,279 $ 7,991 $ 4,797
Ratios of expenses to average net assets: ............
Before reimbursement of expenses by Advisor ........ 1.10%(2) 1.17% 1.28% 1.66% 2.02% 4.83%(2)
After reimbursement of expenses by Advisor ......... 0.90%(2) 0.90% 0.90% 0.90% 0.90% 0.60%(2)
Ratios of net investment income to average net assets:
After reimbursement of expenses by Advisor ......... 3.98%(2) 4.62% 5.53% 6.52% 5.18% 5.37%(2)
Portfolio Turnover ................................... 30% 90% 109% 366% 725% 95%
CLASS B
NET ASSET VALUE, Beginning of Period ................. $ 10.18 $ 10.24 $ 9.58 $ 9.75 $ 10.14 $ 10.00
-------- ---------- -------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................ 0.16 0.39 0.48 0.55 0.44 0.39
Net realized and unrealized gain
(loss) on investments ........................ 0.18 (0.05)(c) 0.66 (0.17) (0.35) 0.14
-------- ---------- -------- ------- ------- -------
Total from investment operations ............... 0.34 0.34 1.14 0.38 0.09 0.53
-------- ---------- -------- ------- ------- -------
LESS DISTRIBUTIONS:
Distributions from net investment income ......... (0.17) (0.40) (0.48) (0.55) (0.44) (0.39)
Distributions from capital gains ................. -- -- -- -- (0.04) --
-------- ---------- -------- ------- ------- -------
Total distributions ............................ (0.17) (0.40) (0.48) (0.55) (0.48) (0.39)
-------- ---------- -------- ------- ------- -------
Net increase (decrease) in net asset value ........... 0.17 (0.06) 0.66 (0.17) (0.39) 0.14
-------- ---------- -------- ------- ------- -------
NET ASSET VALUE, End of Period ....................... $ 10.35 $ 10.18 $ 10.24 $ 9.58 $ 9.75 $ 10.14
======== ========== ======== ======= ======= =======
TOTAL RETURN+ ........................................ 3.36%(1) 3.44% 12.23% 4.10% 0.94% 5.36%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................. $ 69,883 $ 60,517 $ 31,119 $ 10,982 $ 7,508 $ 2.225
Ratios of expenses to average net assets: ............
Before reimbursement of expenses by Advisor ........ 1.85%(2) 1.92% 2.03% 2.41% 2.77% 5.58%(2)
After reimbursement of expenses by Advisor ......... 1.65%(2) 1.65% 1.65% 1.65% 1.65% 1.35%(2)
Ratios of net investment income to average net assets:
After reimbursement of expenses by Advisor ......... 3.23%(2) 3.87% 4.78% 5.77% 4.58% 4.62%(2)
Portfolio Turnover ................................... 30% 90% 109% 366% 725% 95%
- ------------------
(1) Not annualized
(2) Annualized
+ Total return without applicable sales charge.
(a) Fund commenced investment operations on December 29, 1997.
(c) The amount shown for a share outstanding does not correspond with the
aggregate net gain (loss) on investments for the period due to the timing
of sales and repurchases of shares in relation to fluctuating market values
of the investments of the Fund.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
54 FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD
HIGH INCOME FUND
----------------------------------------------------------------------------
SIX MONTHS
ENDED INCEPTION
04/30/03 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (a) TO
(UNAUDITED) 10/31/2002 10/31/2001 10/31/2000 10/31/1999 10/31/1998
----------- ---------- ---------- ---------- ---------- ----------
CLASS A
NET ASSET VALUE, Beginning of Period ................. $ 6.57 $ 7.13 $ 8.02 $ 8.88 $ 8.85 $10.00
-------- -------- -------- -------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................ 0.27 0.58 0.74 0.81 0.80 0.61
Net realized and unrealized gain
(loss) on investments ........................ 0.60 (0.55) (0.88) (0.86) 0.06 (1.15)
-------- -------- -------- -------- ------- ------
Total from investment operations ............... 0.87 0.03 (0.14) (0.05) 0.86 (0.54)
-------- -------- -------- -------- ------- ------
LESS DISTRIBUTIONS:
Distributions from net investment income ......... (0.29) (0.59) (0.75) (0.81) (0.80) (0.61)
Distributions from capital gains ................. -- -- -- -- (0.03) --
-------- -------- -------- -------- ------- ------
Total distributions ............................ (0.29) (0.59) (0.75) (0.81) (0.83) (0.61)
-------- -------- -------- -------- ------- ------
Net increase (decrease) in net asset value ........... 0.58 (0.56) (0.89) (0.86) (0.03) (1.15)
-------- -------- -------- -------- ------- ------
NET ASSET VALUE, End of Period ....................... $ 7.15 $ 6.57 $ 7.13 $ 8.02 $ 8.88 $ 8.85
======== ======== ======== ======== ======= ======
TOTAL RETURN+ ........................................ 13.50%(1) 0.33% (1.94)% (0.81)% 9.69% (5.78)%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................. $ 25,621 $ 18,055 $ 10,939 $ 8,394 $ 7,879 $6,045
Ratios of expenses to average net assets: ............
Before reimbursement of expenses by Advisor ........ 1.43%(2) 1.59% 1.68% 1.62% 1.97% 3.52%(2)
After reimbursement of expenses by Advisor ......... 1.00%(2) 1.00% 1.00% 1.00% 1.00% 1.00%(2)
Ratios of net investment income to average net assets:
After reimbursement of expenses by Advisor ......... 8.04%(2) 8.55% 9.75% 9.40% 8.72% 7.47%(2)
Portfolio Turnover ................................... 22% 47% 38% 41% 48% 56%
CLASS B
NET ASSET VALUE, Beginning of Period ................. $ 6.59 $ 7.14 $ 8.04 $ 8.90 $ 8.85 $10.00
-------- -------- -------- -------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................ 0.24 0.54 0.69 0.75 0.74 0.55
Net realized and unrealized gain
(loss) on investments ........................ 0.60 (0.55) (0.89) (0.86) 0.06 (1.15)
-------- -------- -------- -------- ------- ------
Total from investment operations ............... 0.84 (0.01) (0.20) (0.11) 0.80 (0.60)
-------- -------- -------- -------- ------- ------
LESS DISTRIBUTIONS:
Distributions from net investment income ......... (0.26) (0.54) (0.70) (0.75) (0.74) (0.55)
Distributions from capital gains ................. -- -- -- -- (0.01) --
-------- -------- -------- -------- ------- ------
Total distributions ............................ (0.26) (0.54) (0.70) (0.75) (0.75) (0.55)
-------- -------- -------- -------- ------- ------
Net increase (decrease) in net asset value ........... 0.58 (0.55) (0.90) (0.86) 0.05 (1.15)
-------- -------- -------- -------- ------- ------
NET ASSET VALUE, End of Period ....................... $ 7.17 $ 6.59 $ 7.14 $ 8.04 $ 8.90 $ 8.85
======== ======== ======== ======== ======= ======
TOTAL RETURN+ ........................................ 13.05%(1) (0.27)% (2.77)% (1.54)% 9.02% (6.39)%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................. $ 19,049 $ 15,561 $ 15,063 $ 12,271 $ 9,399 $3,632
Ratios of expenses to average net assets: ............
Before reimbursement of expenses by Advisor ........ 2.18%(2) 2.34% 2.43% 2.37% 2.72% 4.27%(2)
After reimbursement of expenses by Advisor ......... 1.75%(2) 1.75% 1.75% 1.75% 1.75% 1.75%(2)
Ratios of net investment income to average net assets:
After reimbursement of expenses by Advisor ......... 7.29%(2) 7.80% 9.00% 8.65% 8.13% 6.72%(2)
Portfolio Turnover ................................... 22% 47% 38% 41% 48% 56%
- ------------------
(1) Not annualized
(2) Annualized
+ Total return without applicable sales charge.
(a) Fund commenced investment operations on December 29, 1997.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING 55
THROUGHOUT EACH PERIOD
BALANCED FUND
----------------------------------------------------------------------------
SIX MONTHS
ENDED INCEPTION
04/30/03 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (a) TO
(UNAUDITED) 10/31/2002 10/31/2001 10/31/2000 10/31/1999 10/31/1998
----------- ---------- ---------- ---------- ---------- ----------
CLASS A
NET ASSET VALUE, Beginning of Period ................. $ 10.16 $ 11.28 $ 12.65 $ 12.05 $ 10.68 $ 10.00
-------- -------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................ 0.13 0.28 0.30 0.34 0.27 0.21
Net realized and unrealized gain
(loss) on investments ........................ 0.17 (1.12) (1.37) 0.69 1.38 0.68
-------- -------- -------- -------- -------- -------
Total from investment operations ............... 0.30 (0.84) (1.07) 1.03 1.65 0.89
-------- -------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Distributions from net investment income ......... (0.13) (0.28) (0.30) (0.35) (0.27) (0.21)
Distributions from capital gains ................. -- (0.00)* -- (0.08) (0.01) --
-------- -------- -------- -------- -------- -------
Total distributions ............................ (0.13) (0.28) (0.30) (0.43) (0.28) (0.21)
-------- -------- -------- -------- -------- -------
Net increase (decrease) in net asset value ........... 0.17 (1.12) (1.37) 0.60 1.37 0.68
-------- -------- -------- -------- -------- -------
NET ASSET VALUE, End of Period ....................... $ 10.33 $ 10.16 $ 11.28 $ 12.65 $ 12.05 $ 10.68
======== ======== ======== ======== ======== =======
TOTAL RETURN+ ........................................ 3.03%(1) (7.59)% (8.54)% 8.67% 15.58% 8.92%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................ $ 73,965 $ 70,389 $ 61,836 $ 27,088 $ 15,297 $15,670
Ratios of expenses to average net assets: ............
Before reimbursement of expenses by Advisor ........ 1.33%(2) 1.30% 1.35% 1.28% 1.47% 3.40%(2)
After reimbursement of expenses by Advisor ......... 1.10%(2) 1.10% 1.10% 1.10% 1.10% 1.10%(2)
Ratios of net investment income to average net assets:
After reimbursement of expenses by Advisor ......... 2.65%(2) 2.56% 2.55% 2.83% 2.36% 2.53%(2)
Portfolio Turnover ................................... 13% 48% 57% 187% 349% 60%
CLASS B
NET ASSET VALUE, Beginning of Period ................. $ 10.17 $ 11.29 $ 12.66 $ 12.05 $ 10.68 $ 10.00
-------- -------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................ 0.09 0.20 0.21 0.25 0.18 0.14
Net realized and unrealized gain
(loss) on investments ........................ 0.18 (1.12) (1.37) 0.69 1.38 0.68
-------- -------- -------- -------- -------- -------
Total from investment operations ............... 0.27 (0.92) (1.16) 0.94 1.56 0.82
-------- -------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Distributions from net investment income ......... (0.10) (0.20) (0.21) (0.25) (0.18) (0.14)
Distributions from capital gains ................. -- (0.00)* -- (0.08) (0.01) --
-------- -------- -------- -------- -------- -------
Total distributions ............................ (0.10) (0.20) (0.21) (0.33) (0.19) (0.14)
-------- -------- -------- -------- -------- -------
Net increase (decrease) in net asset value ........... 0.17 (1.12) (1.37) 0.61 1.37 0.68
-------- -------- -------- -------- -------- -------
NET ASSET VALUE, End of Period ....................... $ 10.34 $ 10.17 $ 11.29 $ 12.66 $ 12.05 $ 10.68
========= ========= ======== ======== ======== =======
TOTAL RETURN+ ........................................ 2.65%(1) (8.27)% (9.22)% 7.93% 14.72% 8.24%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................ $ 91,664 $ 90,903 $ 92,054 $ 63,669 $ 31,263 $ 7,440
Ratios of expenses to average net assets: ............
Before reimbursement of expenses by Advisor ........ 2.08%(2) 2.05% 2.10% 2.03% 2.22% 4.15%(2)
After reimbursement of expenses by Advisor ......... 1.85%(2) 1.85% 1.85% 1.85% 1.85% 1.85%(2)
Ratios of net investment income to average net assets:
After reimbursement of expenses by Advisor ......... 1.90%(2) 1.81% 1.80% 2.08% 1.62% 1.78%(2)
Portfolio Turnover ................................... 13% 48% 57% 187% 349% 60%
- ------------------
(1) Not annualized
(2) Annualized
+ Total return without applicable sales charge.
(a) Fund commenced investment operations on December 29, 1997.
* Amount represents less than $(0.005) per share.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
56 FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD
GROWTH AND INCOME FUND
----------------------------------------------------------------------------
SIX MONTHS
ENDED INCEPTION
04/30/03 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (a) TO
(UNAUDITED) 10/31/2002 10/31/2001 10/31/2000 10/31/1999 10/31/1998
----------- ---------- ---------- ---------- ---------- ----------
CLASS A
NET ASSET VALUE, Beginning of Period ................. $ 9.37 $ 11.14 $ 14.06 $ 13.21 $ 10.88 $ 10.00
-------- -------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................ 0.07(b) 0.10(b) 0.06 0.07(b) 0.09 0.07
Net realized and unrealized gain
(loss) on investments ........................ 0.14 (1.82) (2.92) .84 2.33 0.89
-------- -------- -------- -------- -------- -------
Total from investment operations ............... 0.21 (1.72) (2.86) 0.91 2.42 0.96
-------- -------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Distributions from net investment income ......... (0.08) (0.05) (0.06) (0.04) (0.09) (0.07)
Distributions from capital gains ................. -- -- -- (0.02) -- --
Distributions in excess of net investment income . -- -- -- -- -- (0.01)
-------- -------- -------- -------- -------- -------
Total distributions ............................ (0.08) (0.05) (0.06) (0.06) (0.09) (0.08)
-------- -------- -------- -------- -------- -------
Net increase (decrease) in net asset value ........... 0.13 (1.77) (2.92) 0.85 2.33 0.88
-------- -------- -------- -------- -------- -------
NET ASSET VALUE, End of Period ....................... $ 9.50 $ 9.37 $ 11.14 $ 14.06 $ 13.21 $ 10.88
======== ======== ======== ======== ======== =======
TOTAL RETURN+ ........................................ 2.26%(1) (15.51)% (20.42)% 6.90% 22.33% 9.75%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................ $ 52,288 $ 53,896 $ 55,966 $ 46,994 $ 25,646 $11,169
Ratios of expenses to average net assets: ............
Before reimbursement of expenses by Advisor ........ 1.38%(2) 1.30% 1.29% 1.07% 1.25% 2.41%(2)
After reimbursement of expenses by Advisor ......... 1.00%(2) 1.00% 1.00% 1.00% 1.00% 1.00%(2)
Ratios of net investment income to average net assets:
After reimbursement of expenses by Advisor ......... 1.44%(2) 0.91% 0.60% 0.54% 0.60% 0.81%(2)
Portfolio Turnover ................................... 10% 18% 24% 14% 19% 5%
CLASS B
NET ASSET VALUE, Beginning of Period ................. $ 9.24 $ 11.02 $ 13.96 $ 13.18 $ 10.88 $ 10.00
-------- -------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ..................... 0.03(b) 0.02(b) (0.02) (0.03)(b) (0.01) 0.01
Net realized and unrealized gain
(loss) on investments ........................ 0.13 (1.79) (2.92) 0.84 2.33 0.89
-------- -------- -------- -------- -------- -------
Total from investment operations ............... 0.16 (1.77) (2.94) 0.81 2.32 0.90
-------- -------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Distributions from net investment income ......... (0.02) (0.01) -- (0.01) -- (0.01)
Distributions from capital gains ................. -- -- -- (0.02) (0.02) --
Distributions in excess of net investment income . -- -- -- -- -- (0.01)
-------- -------- -------- -------- -------- -------
Total distributions ............................ (0.02) (0.01) -- (0.03) (0.02) (0.02)
-------- -------- -------- -------- -------- -------
Net increase (decrease) in net asset value ........... 0.14 (1.78) (2.94) 0.78 2.30 0.88
-------- -------- -------- -------- -------- -------
NET ASSET VALUE, End of Period ....................... $ 9.38 $ 9.24 $ 11.02 $ 13.96 $ 13.18 $ 10.88
======== ======== ======== ======== ======== =======
TOTAL RETURN+ ........................................ 1.76%(1) (16.09)% (21.06)% 6.13% 21.32% 8.97%(2)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ................ $ 69,319 $ 72,329 $ 97,081 $106,762 $ 55,856 $14,408
Ratios of expenses to average net assets: ............
Before reimbursement of expenses by Advisor ........ 2.13%(2) 2.05% 2.04% 1.82% 2.00% 3.16%(2)
After reimbursement of expenses by Advisor ......... 1.75%(2) 1.75% 1.75% 1.75% 1.75% 1.75%(2)
Ratios of net investment income to average net assets:
After reimbursement of expenses by Advisor ......... 0.69%(2) 0.16% (0.15)% (0.21)% (0.15)% 0.06%(2)
Portfolio Turnover ................................... 10% 18% 24% 14% 19% 5%
- ------------------
(1) Not annualized
(2) Annualized
+ Total return without applicable sales charge.
(a) Fund commenced investment operations on December 29, 1997.
(b) Calculated based on average shares outstanding.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL 57
INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
CAPITAL APPRECIATION FUND
-------------------------------------------------------------------------------
SIX MONTHS
ENDED INCEPTION
04/30/03 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (a) TO
(UNAUDITED) 10/31/2002 10/31/2001 10/31/2000 10/31/1999 10/31/1998
----------- ---------- ---------- ---------- ---------- -------------
CLASS A
NET ASSET VALUE, Beginning of Period .............. $ 9.63 $ 12.81 $ 16.44 $ 13.70 $ 11.04 $ 10.00
------- ------- ------- ------- --------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.01(b) (0.02)(b) (0.04)(b) (0.03)(b) (0.00)* 0.01
Net realized and unrealized gain (loss) on
investments ................................. 0.55 (3.11) (3.59) 2.78 2.68 1.04
------- ------- ------- ------- ------- --------
Total from investment operations ............ 0.56 (3.13) (3.63) 2.75 2.68 1.05
------- ------- ------- ------- ------- --------
LESS DISTRIBUTIONS:
Distributions from net investment income ...... -- -- -- -- -- --
Distributions from capital gains .............. -- (0.05) -- (0.01) (0.02) --
Distributions in excess of net investment
income ...................................... -- -- -- -- -- (0.01)
------- ------- ------- ------- ------- --------
Total distributions ......................... -- (0.05) -- (0.01) (0.02) (0.01)
------- ------- ------- ------- ------- --------
Net increase (decrease) in net asset value ........ 0.56 (3.18) (3.63) 2.74 2.66 1.04
------- ------- ------- ------- ------- --------
NET ASSET VALUE, End of Period .................... $ 10.19 $ 9.63 $ 12.81 $ 16.44 $ 13.70 $ 11.04
======= ======= ======= ======= ======= ========
TOTAL RETURN+ ..................................... 5.82%(1) (24.54)% (22.08)% 20.12% 24.29% 10.51%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) .............. $58,852 $55,865 $59,801 $35,889 $13,262 $ 13,410
Ratios of expenses to average net assets: .........
Before reimbursement of expenses by Advisor ..... 1.68%(2) 1.58% 1.58% 1.37% 1.71% 3.28%(2)
After reimbursement of expenses by Advisor ...... 1.20%(2) 1.20% 1.20% 1.20% 1.20% 1.20%(2)
Ratios of net investment income to average net
assets: .........................................
After reimbursement of expenses by Advisor ...... 0.12%(2) (0.16)% (0.30)% (0.27)% (0.05)% 0.11%(2)
Portfolio Turnover ................................ 17% 25% 30% 18% 68% 10%
CLASS B
NET ASSET VALUE, Beginning of Period .............. $ 9.31 $ 12.48 $ 16.13 $ 13.54 $ 10.98 $ 10.00
------- ------- ------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ........................... (0.03)(b) (0.11)(b) (0.15)(b) (0.15)(b) (0.12) (0.02)
Net realized and unrealized gain (loss) on
investments ................................. 0.54 (3.01) (3.50) 2.75 2.68 1.01
------- ------- ------- ------- ------- --------
Total from investment operations ............ 0.51 (3.12) (3.65) 2.60 2.56 0.99
------- ------- ------- ------- ------- --------
LESS DISTRIBUTIONS:
Distributions from net investment income ...... -- -- -- -- -- --
Distributions from capital gains .............. -- (0.05) -- (0.01) -- --
Distributions in excess of net investment
income ...................................... -- -- -- -- -- (0.01)
------- ------- ------- ------- ------- --------
Total distributions ......................... -- (0.05) -- (0.01) -- (0.01)
------- ------- ------- ------- ------- --------
Net increase (decrease) in net asset value ........ 0.51 (3.17) (3.65) 2.59 2.56 0.98
------- ------- ------- ------- --------- --------
NET ASSET VALUE, End of Period .................... $ 9.82 $ 9.31 $ 12.48 $ 16.13 $ 13.54 $ 10.98
======= ======= ======= ======= ======= ========
TOTAL RETURN+ ..................................... 5.48%(1) (25.12)% (22.63)% 19.25% 23.32% 9.91%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) .............. $54,303 $54,600 $72,667 $57,082 $23,563 $ 7,025
Ratios of expenses to average net assets: .........
Before reimbursement of expenses by Advisor ..... 2.43%(2) 2.33% 2.33% 2.12% 2.46% 4.03%(2)
After reimbursement of expenses by Advisor ...... 1.95%(2) 1.95% 1.95% 1.95% 1.95% 1.95%(2)
Ratios of net investment income to average net
assets: .........................................
After reimbursement of expenses by Advisor ...... (0.63)%(2) (0.91)% (1.05)% (1.02)% (1.03)% (0.64)%(2)
Portfolio Turnover ................................ 17% 25% 30% 18% 68% 10%
- ---------------------------------
(1) Not annualized
(2) Annualized
+ Total return without applicable sales charge.
(a) Fund commenced investment operations on December 29, 1997.
(b) Calculated based on average shares outstanding.
* Amount represents less than $(0.005) per share.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
58 FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL
INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
MID-CAP FUND
-----------------------------------------
SIX MONTHS
ENDED INCEPTION
04/30/03 YEAR ENDED (a) TO
(UNAUDITED) 10/31/2002 10/31/2001
----------- ---------- -------------
CLASS A
Net Asset Value, Beginning Period .............................. $ 8.64 $ 9.48 $ 10.00
------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(b) ................................... 0.03 0.02 0.00*
Net realized and unrealized loss on investments ............ 0.48 (0.85) (0.52)
------- -------- --------
Total from investment operations ........................ 0.51 (0.83) (0.52)
------- -------- --------
LESS DISTRIBUTIONS:
Distributions from net investment income ................... -- (0.01) --
Distributions from capital gains ........................... -- (0.00)* --
------- -------- --------
Total distributions ...................................... -- (0.01) --
------- -------- --------
Net decrease in net asset value ................................ 0.51 (0.84) (0.52)
------- -------- --------
Net Asset Value, End of Period ................................. $ 9.15 $ 8.64 $ 9.48
======= ======== ========
TOTAL RETURN+ .................................................. 5.90%(1) (8.79)% (5.20)%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ........................... $24,788 $ 22,650 $ 15,345
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor .................. 1.98%(2) 1.97% 2.29%(2)
After reimbursement of expenses by Advisor ................... 1.40%(2) 1.40% 1.40%(2)
Ratios of net investment income (loss) to average net assets:
After reimbursement of expenses by Advisor ................... 0.30%(2) 0.18% 0.03%(2)
Portfolio Turnover ............................................. 16% 31% 30%
CLASS B
Net Asset Value, Beginning Period .............................. $ 8.54 $ 9.43 $ 10.00
------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(b) ................................... (0.04) (0.06) (0.05)
Net realized and unrealized loss on investments ............ 0.52 (0.83) (0.52)
------- -------- --------
Total from investment operations ......................... 0.48 (0.89) (0.57)
------- -------- --------
LESS DISTRIBUTIONS:
Distributions from net investment income ................... -- -- --
Distributions from capital gains ........................... -- (0.00)* --
------- -------- --------
Total distributions ...................................... -- -- --
------- -------- --------
Net decrease in net asset value ................................ 0.48 (0.89) (0.57)
------- -------- --------
Net Asset Value, End of Period ................................. $ 9.02 $ 8.54 $ 9.43
TOTAL RETURN+ .................................................. 5.62%(1) (9.43)% (5.70)%(1)
======= ======== ========
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ........................... $12,637 $ 11,765 $ 6,192
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor .................. 2.73%(2) 2.72% 3.04%(2)
After reimbursement of expenses by Advisor ................... 2.15%(2) 2.15% 2.15%(2)
Ratios of net investment income (loss) to average net assets:
After reimbursement of expenses by Advisor ................... (0.45)%(2) 0.57% (0.72)%(2)
Portfolio Turnover ............................................. 16% 31% 30%
- --------------------------------------------
(1) Not annualized
(2) Annualized
+ Total return without applicable sales charge.
(a) Fund commenced investment operations on February 28, 2001.
(b) Calculated based on average shares outstanding.
* Amount represents less than $0.005 per share.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL 59
INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
MULTI-CAP GROWTH FUND
------------------------------------------------------
SIX MONTHS
ENDED INCEPTION
04/30/03 YEAR ENDED YEAR ENDED (a) TO
(UNAUDITED) 10/31/2002 10/31/2001 10/31/2000
---------- ---------- ---------- -------------
CLASS A
NET ASSET VALUE, Beginning of Period ........................... $ 3.49 $ 4.27 $ 7.87 $ 10.00
------- ------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ........................................ (0.01)(b) (0.02)(b) (0.02) (0.02)(b)
Net realized and unrealized loss on investments ............ 0.18 (0.76) (3.58) (2.11)
------- ------- -------- --------
Total from investment operations ......................... 0.17 (0.78) (3.60) (2.13)
------- ------- -------- --------
Net decrease in net asset value ................................ 0.17 (0.78) (3.60) (2.13)
------- ------- -------- --------
NET ASSETS VALUE, End of Period ................................ $ 3.66 $ 3.49 $ 4.27 $ 7.87
======= ======= ======== ========
TOTAL RETURN+ .................................................. 4.87%(1) (18.27)% (45.74)% (21.30)%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ........................... $ 8,924 $ 7,915 $ 13,263 $ 20,731
Ratios of expenses to average net assets: ......................
Before reimbursement of expenses by Advisor .................. 2.68%(2) 2.60% 2.36% 1.75%(2)
After reimbursement of expenses by Advisor ................... 1.20%(2) 1.20% 1.20% 1.20%(2)
Ratios of net investment loss to average net assets: ...........
After reimbursement of expenses by Advisor ................... (0.28)%(2) (0.55)% (0.46)% (0.42)%(2)
Portfolio Turnover ............................................. 58% 214% 230% 151%
CLASS B
NET ASSET VALUE, Beginning of Period ........................... $ 3.42 $ 4.22 $ 7.83 $ 10.00
------- ------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ........................................ (0.02)(b) (0.05)(b) (0.07) (0.06)(b)
Net realized and unrealized loss on investments ............ 0.18 (0.75) (3.54) (2.11)
------- ------- -------- --------
Total from investment operations ......................... 0.16 (0.80) (3.61) (2.17)
------- ------- -------- --------
Net decrease in net asset value ................................ 0.16 (0.80) (3.61) (2.17)
------- ------- -------- --------
NET ASSETS VALUE, End of Period ................................ $ 3.58 $ 3.42 $ 4.22 $ 7.83
======= ======= ======== ========
TOTAL RETURN+ .................................................. 4.68%(1) (18.96)% (46.10)% (21.70)%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ........................... $ 6,547 $ 6,050 $ 6,902 $ 8,666
Ratios of expenses to average net assets: ......................
Before reimbursement of expenses by Advisor .................. 3.43%(2) 3.35% 3.11% 2.50%(2)
After reimbursement of expenses by Advisor ................... 1.95%(2) 1.95% 1.95% 1.95%(2)
Ratios of net investment loss to average net assets: ...........
After reimbursement of expenses by Advisor ................... (1.03)%(2) (1.30)% (1.21)% (1.17)%(2)
Portfolio Turnover ............................................. 58% 214% 230% 151%
- ------------------------------
(1) Not annualized
(2) Annualized
+ Total return without applicable sales charge.
(a) Fund commenced investment operations on February 29, 2000.
(b) Calculated based on average shares outstanding.
See accompanying Notes to Financial Statements.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
60 FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL
INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
INTERNATIONAL STOCK FUND
----------------------------------------------------------------------------
SIX MONTHS
ENDED INCEPTION
04/30/03 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (a) TO
(UNAUDITED) 10/31/2002 10/31/2001 10/31/2000 10/31/1999 10/31/1998
----------- ---------- ---------- ---------- ---------- -------------
CLASS A
NET ASSET VALUE, Beginning of Period ........... $ 7.00 $ 7.31 $ 9.55 $ 11.45 $ 10.34 $ 10.00
------- ------- -------- ------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ...................... 0.04(b) 0.07(b) 0.04 0.04(b) 0.14 0.08
Net realized and unrealized gain (loss) on
investments .............................. 0.19 (0.38) (2.21) (0.98) 1.56 0.27
------- ------- -------- ------- --------- ---------
Total from investment operations ......... 0.23 (0.31) (2.17) (0.94) 1.70 0.35
------- ------- -------- ------- --------- ---------
LESS DISTRIBUTIONS:
Distributions from net investment income ... (0.06) -- (0.07) (0.14) (0.14) (0.01)
Distributions from capital gains ........... -- -- -- (0.82) (0.45) --
------- ------- -------- ------- --------- ---------
Total distributions ...................... (0.06) -- (0.07) (0.96) (0.59) (0.01)
------- ------- -------- ------- --------- ---------
Net increase (decrease) in net asset value ..... 0.17 (0.31) (2.24) (1.90) 1.11 0.34
------- ------- -------- ------- --------- ---------
NET ASSET VALUE, End of Period ................. $ 7.17 $ 7.00 $ 7.31 $ 9.55 $ 11.45 $ 10.34
======= ======= ======== ======= ========= =========
TOTAL RETURN+ .................................. 3.26%(1) (4.24)% (22.88)% (9.29)% 17.00% 3.60%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ........... $26,821 $25,732 $ 25,829 $32,071 $ 33,214 $ 27,656
Ratios of expenses to average net assets: ......
Before reimbursement of expenses by Advisor .. 2.19%(2) 2.29% 2.14% 2.06% 2.18% 2.76%(2)
After reimbursement of expenses by Advisor ... 1.60%(2) 1.60% 1.60% 1.60% 1.60% 1.60%(2)
Ratios of net investment income to average net
assets: ......................................
After reimbursement of expenses by Advisor ... 1.07%(2) 0.69% 0.45% 0.43% 1.30% 1.15%(2)
Portfolio Turnover ............................. 13% 47% 86% 117% 57% 60%
CLASS B
NET ASSET VALUE, Beginning of Period ........... $ 6.89 $ 7.25 $ 9.48 $ 11.38 $ 10.28 $ 10.00
------- ------- -------- ------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ...................... 0.01(b) 0.02(b) (0.02) (0.03)(b) 0.05 0.03
Net realized and unrealized gain (loss) on
investments .............................. 0.19 (0.38) (2.20) (0.98) 1.56 0.26
------- ------- -------- ------- --------- ---------
Total from investment operations ......... 0.20 (0.36) (2.22) (1.01) 1.61 0.29
------- ------- -------- ------- --------- ---------
LESS DISTRIBUTIONS:
Distributions from net investment income ... (0.00)* -- (0.01) (0.07) (0.05) (0.01)
Distributions from capital gains ........... -- -- -- (0.82) (0.46) --
------- ------- -------- ------- --------- ---------
Total distributions ...................... (0.00)* -- (0.01) (0.89) (0.51) (0.01)
------- ------- -------- ------- --------- ---------
Net increase (decrease) in net asset value ..... 0.20 (0.36) (2.23) (1.90) 1.10 0.28
------- ------- -------- ------- --------- ---------
NET ASSET VALUE, End of Period ................. $ 7.09 $ 6.89 $ 7.25 $ 9.48 $ 11.38 $ 10.28
======= ======= ======== ======= ========= =========
TOTAL RETURN+ .................................. 2.91%(1) (4.97)% (23.48)% (9.92)% 16.09% 2.90%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) ........... $ 4,555 $ 4,591 $ 4,787 $ 5,497 $ 3,326 $ 1,350
Ratios of expenses to average net assets: ......
Before reimbursement of expenses by Advisor .. 2.94%(2) 3.04% 2.89% 2.81% 2.93% 3.51%(2)
After reimbursement of expenses by Advisor ... 2.35%(2) 2.35% 2.35% 2.35% 2.35% 2.35%(2)
Ratios of net investment income to average net
assets: ......................................
After reimbursement of expenses by Advisor ... 0.32%(2) (0.06)% (0.30)% (0.32)% 0.63% 0.40%(2)
Portfolio Turnover ............................. 13% 47% 86% 117% 57% 60%
- ----------------------------------
(1) Not annualized
(2) Annualized
+ Total return without applicable sales charge.
(a) Fund commenced investment operations on December 29, 1997.
(b) Calculated based on average shares outstanding.
* Amount represents less than $(0.005) per share.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 61
1. ORGANIZATION
MEMBERS Mutual Funds, a Delaware Business Trust ("The Trust"), is registered
under the Investment Company Act of 1940, as amended (the "1940 Act") as an
open-end, management investment company. As of the date of this report, the
Trust offers nine Funds (individually, a "Fund," collectively, the "Funds") each
with two classes of shares: Class A and Class B. The Declaration of Trust
permits the Trustees to issue an unlimited number of shares of beneficial
interest of the Trust without par value. Each class of shares represents an
interest in the assets of the respective Fund and has identical voting,
dividend, liquidation and other rights, except that each class of shares bears
its own distribution fees and its proportional share of fund level expenses, is
subject to its own sales charges, if any, and has exclusive voting rights on
matters pertaining to Rule 12b-l as it relates to that class. The accompanying
financial statements include the Cash Reserves Fund, Bond Fund, High Income
Fund, Balanced Fund, Growth and Income Fund, Capital Appreciation Fund, Mid-Cap
Fund, Multi-Cap Growth Fund and International Stock Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions 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 during the reported period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by each Fund in the
preparation of its financial statements.
Portfolio Valuation: Securities and other investments are valued as follows: (1)
equity securities listed on an established exchange or over-the-counter are
valued on the basis of market price, provided that a market quotation is readily
available. (2) Fixed income securities and non-convertible preferred stocks are
valued using readily available market quotations, if available. When exchange
quotations are used, the latest quoted sale price is used. If an
over-the-counter quotation is used, the last bid price will normally be used.
(3) Readily available market quotations will not be deemed available if an
exchange quotation exists for a debt security, preferred stock, or security
convertible into common stock, but it does not reflect the true value of the
fund's holdings because sales have occurred infrequently, the market for the
security is thin, or the size of the reported trade is considered not comparable
to the fund's institutional size holdings. (4) When readily available market
quotations are not available, the fund will use an independent pricing service
which provides valuations for normal institutional size trading units of such
securities. Such a service may utilize a matrix system which takes into account
appropriate factors such as institutional size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading
characteristics and other market data in determining valuations. (5) Options,
stock index futures, interest rate futures, and related options which are traded
on U.S. exchanges or boards of trade are valued at the closing price as of the
close of the New York Stock Exchange. (6) forward foreign currency exchange
contracts are valued based on quotations supplied by dealers in such contracts
or dealers in such currencies. The value of all assets and liabilities expressed
in foreign currencies will be converted into U.S. dollar values at the noon
(Eastern Standard Time) Reuters spot rate; (7) Investments in other mutual funds
are valued at the net asset value per share (8) short-term instruments having
maturities of 60 days or less will be valued at amortized cost. Short-term
instruments having maturities of more than sixty (60) days will be valued at
market values or values based on current interest rates. All other securities
for which either quotations are not readily available, no other sales have
occurred, or do not, in MEMBERS Capital Advisors' (the "Investment Advisor")
opinion, reflect the current market value are appraised at their fair values as
determined in good faith by and under the general supervision of the Board of
Trustees.
Security Transactions and Investment Income: Security transactions are accounted
for on a trade date basis. Net realized gains or losses on sales are determined
by the identified cost method. Interest income is recorded on the accrual basis.
Dividend income is recorded on ex-dividend date.
Federal Income Taxes: It is each Fund's intention to qualify as a regulated
investment company for federal income tax purposes by complying with the
appropriate provisions of the Internal Revenue Code of 1986, as amended.
Accordingly, no provisions for federal income taxes are recorded in the
accompanying financial statements.
Expenses: Expenses that are directly related to one Fund are charged directly to
that Fund. Other operating expenses are prorated to the Funds on the basis of
relative net assets.
Classes: Class-specific expenses are borne by that class. Income, non-class
specific expenses, and realized and unrealized gains/losses are allocated to the
respective classes on the basis of relative net assets.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
62 NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
Repurchase Agreements: Each Fund may engage in repurchase agreements. In a
repurchase agreement, a security is purchased for a relatively short period
(usually not more than 7 days) subject to the obligation to sell it back to the
issuer at a fixed time and price plus accrued interest. The Funds will enter
into repurchase agreements only with member banks of the Federal Reserve System
and with "primary dealers" in U.S. Government securities.
Foreign Currency Transactions: The books and records are maintained in U.S.
dollars. Foreign currency amounts are translated into U.S. dollars on the
following basis:
(1) market value of investment securities, assets and liabilities at
the current rate of exchange; and
(2) purchases and sales of investment securities, income and expenses
at the relevant rates of exchange prevailing on the respective
dates of such transactions.
The High Income, Mid-Cap, Multi-Cap Growth and International Stock Funds report
certain foreign currency-related transactions as components or realized gains or
losses for financial reporting purposes, whereas such components are treated as
ordinary income for federal income tax purposes.
The Funds do not isolate the portion of gains and losses on investments in
securities that is due to changes in the foreign exchange rates from that which
is due to change in market prices of securities. Such amounts are categorized as
gain or loss on investments for financial reporting purposes.
Forward Foreign Currency Exchange Contracts: The Funds (other than Cash
Reserves) may each purchase or sell forward foreign currency exchange contracts
for defensive or hedging purposes when the Fund's Investment Advisor anticipates
that the foreign currency will appreciate or depreciate in value. When entering
into forward currency exchange contracts, the Funds agree to receive or deliver
a fixed quantity of foreign currency for an agreed-upon price on an agreed
future date. These contracts are valued daily and the Funds' net assets,
representing unrealized gain or loss on the contracts as measured by the
difference between the forward foreign exchange rates at the dates of entry into
the contracts and the forward rates at the reporting date, are included in the
Statements of Assets and Liabilities. The Funds realize a gain or a loss at the
time the forward currency exchange contracts are closed out or are offset by a
matching contract. Realized and unrealized gains and losses are included in the
Statements of Operations. At the period ended April 30, 2003, only the High
Income Fund had open forward currency exchange contracts, which are presented in
the Fund's Portfolio of Investments.
If a Fund enters into a forward foreign currency exchange contract to buy
foreign currency for any purpose, the Fund will be required to place cash or
liquid high grade debt securities in a segregated account with the Fund's
custodian in an amount equal to the value of the Fund's total assets committed
to the consummation of the forward contract. If the value of the securities in
the segregated account declines, additional cash or securities will be placed in
the segregated account so that the value of the account will equal the amount of
the Fund's commitment with respect to the contract.
Forward contracts are subject to the risk that the counterparty to such contract
will default on its obligations. Since a forward foreign currency exchange
contract is not guaranteed by an exchange or clearinghouse, a default on the
contract would deprive a Fund of unrealized profits, transaction costs or the
benefits of a currency hedge or force the fund to cover its purchase or sale
commitments, if any, at the current market price. A Fund will not enter into
such transactions unless the credit quality of the unsecured senior debt or the
claims-paying ability of the counterparty is considered to be investment grade
by the Fund's Investment Advisor.
Futures Contracts: The Funds (other than Cash Reserves) may purchase and sell
futures contracts and purchase and write options on futures contracts. The funds
will engage in futures contracts or related options transactions only for bona
fide hedging purposes. Upon entering into a futures contract, the Fund is
required to pledge to the broker an amount of cash, U.S. Government securities
or other assets, equal to a certain percentage of the contract (initial margin
deposit). Subsequent payments, known as "variation margin," are made or received
by the Fund each day, depending on the daily fluctuations in the fair value of
the underlying security. When a Fund enters into a futures contract, the Fund
segregates in cash or liquid securities, of any type or maturity, equal in value
to the Fund's commitment. The Fund recognizes a gain or loss equal to the daily
variation margin. Should market conditions move unexpectedly, the Fund may not
achieve the anticipated benefits of the futures contracts and may realize a
loss. The use of futures transactions involves the risk of imperfect correlation
in movements in the price of futures contracts, interest rates, and the
underlying hedged assets.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) 63
Delayed Delivery Securities: Each Fund may purchase securities on a when-issued
or delayed delivery basis. "When-issued" refers to securities whose terms are
available and for which a market exists, but that have not been issued. For
when-issued or delayed delivery transactions, no payment is made until delivery
date, which is typically longer than the normal course of settlement, and often
more than a month or more after the purchase. When a Fund enters into an
agreement to purchase securities on a when-issued or delayed delivery basis, the
Fund segregates in cash or liquid securities, of any type or maturity, equal in
value to the Fund's commitment. Losses may arise due to changes in the market
value of the underlying securities, if the counterparty does not perform under
the contract, or if the issuer does not issue the securities due to political,
economic or other factors. For the period ended April 30, 2003, only the Bond
and Balanced Funds entered into such transactions, the market values of which
are identified in the Fund's Portfolio of Investments.
3. ADVISORY, ADMINISTRATION AND DISTRIBUTION AGREEMENTS
The Trust has entered into an Investment Advisory Agreement with MEMBERS Capital
Advisors, Inc. (the "Investment Advisor"). For its investment advisory services
to the Funds, the Investment Advisor is entitled to receive a fee, which is
calculated daily and paid monthly, at an annual rate based upon the following
percentages of average daily net assets: 0.40% for the Cash Reserves Fund; 0.50%
for the Bond Fund; 0.55% for the High Income Fund; 0.65% for the Balanced Fund;
0.55% for the Growth and Income Fund; 0.75% for the Capital Appreciation Fund;
0.95% for the Mid-Cap Fund, 0.75% for the Multi-Cap Growth Fund and 1.05% for
the International Stock Fund. The Investment Advisor has entered into Subadvisor
agreements for the management of the investments of the High Income Fund, the
Mid-Cap Fund, the Multi-Cap Growth Fund, and the International Stock Fund. The
Investment Advisor is solely responsible for the payment of all fees to the
Subadvisors. The Subadvisors for these Funds are Massachusetts Financial
Services Company for the High Income Fund, Wellington Management Company LLP for
a portion of the Mid-Cap Fund and the entire Multi-Cap Growth Fund, and Lazard
Asset Management for the International Stock Fund.
The Investment Advisor contractually agrees to waive a portion of its fees and
to reimburse the Funds for certain expenses so that total expenses will not
exceed certain expense limitations. The Investment Advisor has agreed to waive
fees and/or reimburse expenses with respect to the Funds in order that total
expenses will not exceed the following amounts:
FUND CLASS A CLASS B
---- ------- -------
Cash Reserves Fund 0.55% 1.30%
Bond Fund 0.90% 1.65%
High Income Fund 1.00% 1.75%
Balanced Fund 1.10% 1.85%
Growth and Income Fund 1.00% 1.75%
Capital Appreciation Fund 1.20% 1.95%
Mid-Cap Fund 1.40% 2.15%
Multi-Cap Growth Fund 1.20% 1.95%
International Stock Fund 1.60% 2.35%
For the Period ended April 30, 2003, the Investment Advisor reimbursed expenses
of $54,925 for the Cash Reserves Fund, $129,666 for the Bond Fund, $81,516 for
the High Income Fund, $180,608 for the Balanced Fund, $236,370 for the Growth
and Income Fund, $261,040 for the Capital Appreciation Fund, $102,397 for the
Mid-Cap Fund, $105,608 for the Multi-Cap Growth Fund and $89,155 for the
International Stock Fund.
Any reimbursements or fee reductions made by the Investment Advisor to a Fund
are subject to repayment by the Fund, to the extent that the Fund is able to
make the repayment within its expense cap. Such payments must be made within
three years, measured on a fiscal year basis, from when the reimbursement or fee
reduction occurred. The amounts recoverable and their expiration dates are as
follows:
RECOVERY EXPIRING RECOVERY EXPIRING RECOVERY EXPIRING
FUND OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2005
---- ---------------- ---------------- ----------------
Cash Reserves Fund $ 73,959 $ 90,801 $ 114,473
Bond Fund 79,335 140,301 234,662
High Income Fund 72,153 160,158 174,043
Balanced Fund 84,684 298,079 348,289
Growth and Income Fund 70,368 454,597 473,218
Capital Appreciation Fund 64,827 430,721 533,959
Mid-Cap Fund -- 94,077 189,165
Multi-Cap Growth Fund 92,898 278,988 247,687
International Stock Fund 122,233 187,608 223,636
Through April 30, 2003, none of the Funds have made repayments to the Investment
Advisor under the agreement.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
64 NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
CUNA Brokerage Services, Inc. (CUNA Brokerage) serves as distributor of the
Funds. The Trust adopted Distribution Plans (the "Plans") with respect to
Trust's Class A and B shares pursuant to Rule 12b-l under the 1940 Act. Under
the Plans, the Trust will pay service fees for Class A and Class B share at an
aggregate annual rate of 0.25% of each Fund's daily net assets attributable to
the respective class of shares for all Funds except the Cash Reserves Fund. The
service fees are used to compensate selling brokers and others for providing
personal and account maintenance services to shareholders. The Trust will also
pay distribution fees for Class B shares at an aggregate annual rate of 0.75% of
each Fund's daily net assets attributable to Class B. The distribution fees are
used to reimburse CUNA Brokerage for its distribution expenses with respect to
Class B only, including but not limited to: (1) initial and ongoing sales
compensation to selling brokers and others engaged in the sale of Fund shares,
(2) marketing, promotional and overhead expenses incurred in connection with the
distribution of Fund shares, and (3) interest expenses on unreimbursed
distribution expenses. For Class B of the Cash Reserves Fund, the Investment
Advisor has voluntarily agreed to waive a portion of its distribution fees to
offset instances whereby the Class's daily distribution amount would otherwise
have been negative. These class specific waivers, which are in addition to its
contractual limitation, amounted to $193 and are included within the
reimbursement amount shown on the Statement of Operations. There is no assurance
the Investment Advisor will continue to engage in this practice.
In addition to distribution fees, CUNA Brokerage received sales charges paid by
the purchasers or redeemers of the Funds' shares. For the period ended April 30,
2003, sales charges received by CUNA Brokerage were as follows:
AMOUNT PAID
-----------
FUND CLASS A CLASS B
---- ------- -------
Cash Reserves Fund $ 49,071 $ 105,947
Bond Fund 280,543 125,579
High Income Fund 70,852 23,486
Balanced Fund 309,938 208,482
Growth and Income Fund 187,280 146,933
Capital Appreciation Fund 146,034 115,927
Mid-Cap Fund 64,687 24,725
Multi-Cap Growth Fund 37,733 16,223
International Stock Fund 19,035 10,263
Certain officers and trustees of the Funds are also officers of the Investment
Advisor. The Funds do not compensate their officers or affiliated trustees. The
Trust pays each unaffiliated trustee $1,250 per Board of Trustees meeting
attended.
4. DIVIDENDS FROM NET INCOME AND DISTRIBUTIONS OF CAPITAL GAINS
With respect to the Cash Reserves Fund and the Bond Fund, dividends from net
investment income are declared daily and net realized gains from investment
transactions, if any, are distributed to shareholders annually. The High Income
Fund and Balanced Fund declare dividends from net investment income monthly and
net realized gains from investment transactions, if any, are distributed to
shareholders annually. The Growth and Income Fund, Capital Appreciation Fund,
Mid-Cap Fund, Multi-Cap Growth Fund and the International Stock Fund declare
dividends from net investment income annually and net realized gains from
investment transactions, if any, are distributed to shareholders annually.
Income and capital gain distributions, if any, are determined in accordance with
federal income tax regulations, which may differ from accounting principles
generally accepted in the United States of America. Taxable distributions from
income and realized capital gains in the Funds differ from book amounts earned
during the period due to differences in the timing of capital recognition, and
due to the reclassification of certain gains or losses from capital to income.
Dividends from net investment income are determined on a class level. Capital
gains are determined on a fund level.
5. SECURITIES TRANSACTIONS
For the period ended April 30, 2003, aggregate cost of purchases and proceeds
from sales of securities, other than short-term investments, were as follows:
U.S. GOVERNMENT OTHER INVESTMENT
SECURITIES SECURITIES
--------------------------- -------------------------
FUND PURCHASES SALES PURCHASES SALES
---- --------- ----- --------- -----
Bond Fund $ 45,558,122 $ 24,857,708 $ 16,374,420 $ 14,325,497
High Income Fund -- -- 16,836,692 7,905,465
Balanced Fund 6,355,533 5,834,197 17,915,422 14,948,381
Growth and Income Fund -- -- 11,816,663 21,960,852
Capital Appreciation Fund -- -- 18,690,941 23,667,218
Mid-Cap Fund -- -- 6,560,207 5,615,964
Multi-Cap Growth Fund -- -- 8,592,215 7,938,109
International Stock Fund -- -- 3,947,698 3,832,380
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) 65
At April 30, 2003, the aggregate gross unrealized appreciation (depreciation)
and net unrealized appreciation (depreciation) for all securities as computed on
a book basis for each Fund were as follows:
FUND APPRECIATION DEPRECIATION NET
---- ------------ ------------ ---
Bond Fund $5,179,371 $ 608,998 $ 4,570,373
High Income Fund 2,649,833 2,180,054 469,779
Balanced Fund 6,912,620 22,384,923 (15,472,303)
Growth and Income Fund 4,593,685 29,457,257 (24,863,572)
Capital Appreciation Fund 6,653,675 22,314,878 (15,661,203)
Mid-Cap Fund 2,685,489 4,550,937 (1,865,448)
Multi-Cap Growth Fund 1,394,832 547,221 847,611
International Stock Fund 3,600,647 4,339,328 (738,681)
6. FOREIGN SECURITIES
Each Fund may invest in foreign securities, although only the High Income Fund,
Multi-Cap Growth Fund and International Stock Fund anticipate having significant
investments in such securities. The International Stock Fund, High Income Fund
and Multi-Cap Growth Fund may invest 100%, 50% and 25%, respectively, of their
assets in foreign securities. No Fund will concentrate its investments in a
particular foreign country.
Foreign securities means securities that are: (1) issued by companies organized
outside the U.S. or whose principal operations are outside the U.S. ("foreign
issuers"), (2) issued by foreign governments or their agencies or
instrumentalities (also "foreign issuers"), (3) principally traded outside the
U.S., or (4) quoted or denominated in a foreign currency ("non-dollar
securities"). Foreign securities include ADRs, EDRs, GDRs and foreign money
market securities.
Investing in foreign securities involves certain risks not necessarily found in
U.S. markets. These include risks associated with adverse changes on economic,
political, regulatory and other conditions, changes in currency exchange rates,
exchange control regulations, expropriation of assets or nationalization,
imposition of withholding taxes on dividend or interest payments or capital
gains, and possible difficulty in obtaining and enforcing judgments against
foreign entities. Further, issuers of foreign securities are subject to
different, and often less comprehensive, accounting, reporting and disclosure
requirements than domestic issuers.
7. SECURITIES LENDING
The Funds, excluding the Cash Reserves Fund, entered into a Securities Lending
Agreement (the "Agreement") with State Street Bank and Trust Company ("State
Street"). Under the terms of the Agreement, the Funds may lend portfolio
securities to qualified borrowers in order to earn additional income. The
Agreement requires that loans are collateralized at all times by cash or other
liquid assets at least equal to the value of the securities, which is determined
on a daily basis. At April 30, 2003 cash collateral received for Funds engaged
in securities lending was invested in the State Street Navigator Securities
Lending Prime Portfolio, additionally non-cash collateral was also received. The
value of all collateral is included within the Portfolio of Investments with an
offsetting liability on the Statements of Assets and Liabilities.
Amounts earned as interest on investments of cash collateral, net of rebates and
fees, are included in the Statements of Operations. The value of securities on
loan at April 30, 2003 is as follows:
FUND VALUE OF SECURITIES ON LOAN
---- ---------------------------
Bond Fund $ 25,220,634
High Income Fund 7,258,964
Balanced Fund 9,371,612
Growth and Income Fund 1,247,290
Capital Appreciation Fund 11,452,453
Mid-Cap Fund 2,826,726
Multi-Cap Growth Fund 860,005
The primary risk associated with securities lending is if the borrower defaults
on its obligation to return the securities loaned because of insolvency or other
reasons. The Funds could then experience delays and costs in recovering
securities loaned or in gaining access to the collateral.
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
66 NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
8. TAX INFORMATION
For federal income taxes purposes, the Funds listed below have capital loss
carryovers as of October 31, 2002, which are available to offset future capital
gains, if any:
CARRYOVER CARRYOVER CARRYOVER CARRYOVER CARRYOVER
FUND EXPIRING IN 2006 EXPIRING IN 2007 EXPIRING IN 2008 EXPIRING IN 2009 EXPIRING IN 2010
---- ---------------- ---------------- ---------------- ---------------- ----------------
Bond Fund $ -- $ -- $ 360,543 $ -- $ 230,858
High Income Fund 66,186 328,128 237,390 2,053,681 2,445,850
Balanced Fund -- -- -- -- 5,493,333
Growth and Income Fund -- -- 1,214,946 2,865,513 11,738,982
Capital Appreciation Fund -- -- -- -- 19,056,782
Mid-Cap Fund -- -- -- -- 1,801,181
Multi-Cap Growth Fund -- -- 6,443,167 10,391,144 5,728,147
International Stock Fund -- -- 1,887,109 3,985,467 4,881,331
9. FINANCIAL INSTRUMENTS
Investing in certain financial instruments, including forward foreign currency
contracts and futures contracts, involves risk other than that reflected in the
Statements of Assets and Liabilities. Risk associated with these instruments
include potential for an imperfect correlation between the movements in the
prices of the instruments and the prices of the underlying securities and
interest rates, an illiquid secondary market for the instruments or inability of
counterparties to perform under the terms of the contracts and changes in the
value of foreign currency relative to the U.S. dollar. The High Income Fund,
Multi-Cap Growth Fund and International Stock Fund enter into these contracts
primarily to protect these Funds from adverse currency movements.
10. CONCENTRATION OF RISK
The High Income Fund invests in securities offering high current income, which
generally will include bonds in the below investment grade categories of
recognized rating agencies (so-called "junk bonds"). These securities generally
involve more credit risk than securities in the higher rating categories. In
addition, the trading market for high yield securities may be relatively less
liquid than the market for higher-rated securities. The Fund generally invests
at least 80% of its assets in high yield securities.
11. CAPITAL SHARES AND AFFILIATED OWNERSHIP
Each Fund is authorized to issue an unlimited number of shares of beneficial
interest with no par value. Each Fund currently offers two classes of shares,
Class A and Class B. At April 30, 2003, investments in the Funds by affiliates
were as follows:
CUNA MUTUAL CUNA MUTUAL CUMIS CUNA BROKERAGE
FUND CLASS LIFE INSURANCE COMPANY INSURANCE SOCIETY INSURANCE SOCIETY, INC. SERVICES, INC.
---- ----- ---------------------- ----------------- ----------------------- --------------
Cash Reserves Fund A $ 1,844,007 $ 1,842,777 $ -- $ --
Bond Fund A 2,075,059 2,073,676 -- --
High Income Fund A 5,724,373 -- -- --
Balanced Fund A 10,417,166 -- 4,534,600 1,127,939
Growth and Income Fund A 1,657,418 1,928,922 2,657,548 --
Capital Appreciation Fund A 9,847,984 1,353,795 -- --
Mid-Cap Fund A 9,155,775 -- -- --
Mid-Cap Fund B 902 -- -- --
International Stock Fund A 2,512,896 4,187,323 14,959,599 --
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
TRUSTEES AND OFFICERS 67
NUMBER OF
PORTFOLIOS OTHER
POSITION(S) OVERSEEN OUTSIDE
NAME, ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATION IN FUND DIRECTOR-
YEAR OF BIRTH THE FUND SERVICE(1) DURING PAST FIVE YEARS COMPLEX SHIPS(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Michael S. Daubs(2)(3) Trustee 1997 - CUNA Mutual Insurance Society 19 --
5910 Mineral Point Road (Chairman) Present Chief Officer - Investments,
Madison, WI 53705 1990 - Present
Year of Birth: 1943
MEMBERS Capital Advisors, Inc.
President,
1982 - Present
CUNA Mutual Life Insurance Company
Chief Officer - Investments,
1973 - Present
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence R. Halverson(2)(4) Trustee, 1997 - MEMBERS Capital Advisors, Inc. 19 --
5910 Mineral Point Road President Present Senior Vice President - Equities
Madison, WI 53705 and Principal 1996 - Present
Year of Birth: 1945 Executive
Officer CUNA Brokerage Services, Inc.
President,
1996 - 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Mary E. Hoffmann(2) Treasurer 1998 - MEMBERS Capital Advisors, Inc. 19 --
5910 Mineral Point Road Present Assistant Vice President - Product
Madison, WI 53705 Operations and Finance,
Year of Birth: 1970 2001 - Present
Product Operations and Finance
Manager,
1998 - 2001
CUNA Mutual Insurance Society
Investment Accounting Supervisor,
1996 - 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Holly S. Baggot(2) Secretary 1999 - MEMBERS Capital Advisors, Inc. 9 --
5910 Mineral Point Road and Present Senior Manager - Product and Fund
Madison, WI 53705 Assistant Operations, 2001 - Present
Year of Birth: 1960 Treasurer
Operations & Administration Manager
1998 - 2001
- ------------------------------------------------------------------------------------------------------------------------------------
Dan Owens(2) Assistant 2000 - MEMBERS Capital Advisors, Inc. 19 --
5910 Mineral Point Road Treasurer Present Senior Manager - Portfolio Operations,
Madison, WI 53705 2001 - Present
Year of Birth: 1966
Investment Operations Manager,
1999 - 2001
AmerUS Capital Management
Manager, Investment Accounting -
Reporting, 1998 - 1999
AmerUs Life Holdings, Inc.
Senior Investment Accountant,
1994 - 1998
[MEMBERS LOGO]
SEMIANNUAL REPORT APRIL 30, 2003 MUTUAL FUNDS
68 TRUSTEES AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS OTHER
POSITION(S) OVERSEEN OUTSIDE
NAME, ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATION IN FUND DIRECTOR-
YEAR OF BIRTH THE FUND SERVICE(1) DURING PAST FIVE YEARS COMPLEX SHIPS(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Gwendolyn M. Boeke Trustee 1997 - Wartburg Theological Seminary 19 --
2000 Heritage Way Present Development Association,
Waverly, IA 50677 Development Associate,
Year of Birth: 1934 1997 - Present
Evangelical Lutheran Church in America
Foundation (Chicago, Illinois)
Regional Director, 1990 - Present
Wartburg College
Director, 1986 - 2001
- ------------------------------------------------------------------------------------------------------------------------------------
Alfred L. Disrud Trustee 1997 - Planned Giving Services 19 --
2000 Heritage Way Present (Waverly, Iowa)
Waverly, IA 50677 Owner, 1986 - Present
Year of Birth: 1921
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas C. Watt Trustee 1997 - Vision Development Services, Inc. 19 Wells Fargo
2000 Heritage Way Present Consultant, Bank,
Waverly, IA 50677 1997 - Present Community
Year of Birth: 1936 Director,
MidAmerica Energy Company 1985 -
(Waterloo, Iowa) Present
Manager, Business Initiatives,
1987 - 1999
(l) The board of trustees and officers of the Fund do not currently have term
limitations.
(2) "Interested person" as defined in the 1940 Act.
(3) Mr. Daubs is considered an "interested" trustee because of the position he
holds with the investment advisor of the trust.
(4) Mr. Halverson is considered an "interested" trustee because of the position
he holds with the investment advisor of the trust.
(5) Include only directorships with companies that:
(a) have a class of securities registered with the SEC under the
Securities Exchange Act, section 12; or
(b) are subject to the requirements of section 15(d) of the
Securities Exchange Act; or
(c) are registered as an investment adviser.
[MEMBERS LOGO]
MUTUAL FUNDS SEMIANNUAL REPORT APRIL 30, 2003
[MEMBERS LOGO]
MUTUAL FUNDS
MEMBERS(R) Mutual Funds
Post Office Box 8390
Boston, MA 02266-8390
1 (800) 877-6089
www.membersfunds.com
Distributed by:
CUNA Brokerage Services, Inc.
Office of Supervisory Jurisdiction
2000 Heritage Way
Waverly, IA 50677-9202
1 (866) 512-6109
Member NASD/SIPC
NONDEPOSIT INVESTMENT PRODUCTS ARE NOT FEDERALLY INSURED, INVOLVE INVESTMENT
RISK, MAY LOSE VALUE AND ARE NOT OBLIGATIONS OF OR GUARANTEED BY THE CREDIT
UNION.
For more complete information about MEMBERS Mutual Funds, including charges and
expenses, request a prospectus from your registered representative or from
MEMBERS Mutual Funds, Post Office Box 8390, Boston, MA 02266-8390. Read the
prospectus carefully before you invest or send money.
4460-P1053(0403)
(C) CUNA Mutual Group
ITEM 2. CODE OF ETHICS.
(a) Not required in this semi-annual report filed on Form N-CSR.
(c) Not applicable.
(d) Not applicable.
(e) Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not required in this semi-annual report filed on Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required in this semi-annual report filed on Form N-CSR.
ITEMS 5 - 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Each of the Trust's President and Treasurer has concluded,
upon conducting an evaluation of the Trust's disclosure
controls and procedures ("DCPs"), as such term is defined in
Rule 30a-2(c) under the Act, which such evaluation was made as
of a date (the "Evaluation Date") within 90 days of the filing
of this Report on Form N-CSR, that the Trust's DCPs are
sufficiently effective as of the Evaluation
Date so as to ensure that material information relating to the
Trust is made known to us by others within the Trust,
particularly during the period in which this report on Form
N-CSR was prepared.
(b) There have been no significant changes in the Trust's internal
controls or in other factors that could significantly affect
those controls subsequent to the Evaluation Date. In addition,
there have been no corrective actions undertaken with respect
to the Trust with regard to significant deficiencies and
material weaknesses.
ITEM 10. EXHIBITS.
(a) Not applicable.
(b) Certifications of the President and Treasurer of the registrant.
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.
MEMBERS MUTUAL FUNDS
BY: /s/ Lawrence R. Halverson
-------------------------
Lawrence R. Halverson
President
DATE: June 19, 2003
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/ Lawrence R. Halverson
-------------------------
Lawrence R. Halverson
President, MEMBERS Mutual Funds
DATE: June 19, 2003
By: /s/ Mary E. Hoffmann
--------------------
Mary E. Hoffmann
Treasurer, MEMBERS Mutual Funds
Date: June 19, 2003
EXHIBIT INDEX
Exhibit 10(b)(i) - Certification of Lawrence C. Halverson, President, MEMBERS
Mutual Funds
Exhibit 10(b)(ii) - Certification of Mary E. Hoffman, Treasurer, MEMBERS Mutual
Funds