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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08305
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Eureka Funds
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(Exact name of registrant as specified in charter)
3435 Stelzer Road Columbus, OH 43219
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(Address of principal executive offices) (Zip code)
BISYS Fund Services, 3435 Stelzer Road, Columbus, OH 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: (888) 890-8121
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Date of fiscal year end: September 30, 2003
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Date of reporting period: September 30, 2003
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Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
[EUREKA FUNDS LOGO]
ANNUAL REPORT
September 30, 2003
DISCOVER
Disciplined
INVESTING
TABLE OF CONTENTS
Glossary of Terms ...................................................... (i)
Investment Management Philosophy ....................................... 1
Shareholder Letter ..................................................... 2
Eureka U.S. Treasury Obligations Fund Commentary ....................... 4
Eureka Prime Money Market Fund Commentary .............................. 5
Eureka Investment Grade Bond Fund Commentary ........................... 6
Eureka Investment Grade Bond Fund Review ............................... 7
Eureka Global Fund Commentary .......................................... 8
Eureka Global Fund Review .............................................. 9
Eureka Equity Fund Commentary .......................................... 10
Eureka Equity Fund Review .............................................. 11
Schedules of Portfolio Investments ..................................... 12
Statements of Assets and Liabilities ................................... 36
Statements of Operations ............................................... 38
Statements of Changes in Net Assets .................................... 40
Financial Highlights ................................................... 44
Notes to the Financial Statements ...................................... 50
Report of Independent Auditors ......................................... 54
This material is authorized for distribution to prospective investors only when
accompanied or preceded by a current prospectus. Please call 1-888-890-8121 for
a prospectus, which contains more complete information on the Eureka Funds,
including fees and ongoing expenses. Please read the prospectus carefully before
investing or sending money.
The Eureka Funds are distributed by BISYS Fund Services, LP. Eureka Investment
Advisors, Inc., is the Investment Adviser to the Funds and receives fees for
those services.
MUTUAL FUNDS: ARE NOT FDIC-INSURED - HAVE NO BANK GUARANTEE - MAY LOSE VALUE
GLOSSARY OF TERMS
LIPPER RANKINGS - AS OF SEPTEMBER 30, 2003
THE EUREKA U.S. TREASURY OBLIGATIONS FUND (Trust Shares) ranked 7 out of 93 and
7 out of 74 for the one- and five-year periods, respectively, for the Lipper
U.S. Treasury Money Market Funds category as reported by Lipper Analytical
Services.
THE EUREKA PRIME MONEY MARKET FUND (Trust Shares) ranked 67 out of 400 and 49
out of 280 for the one- and five-year periods, respectively, for the Lipper
Money Market Instrument Funds category as reported by Lipper Analytical
Services.
THE EUREKA INVESTMENT GRADE BOND FUND (Trust Shares) ranked 343 out of 411 and
110 out of 222 for the one- and five-year periods, respectively, for the Lipper
Intermediate Investment Grade Debt Funds category as reported by Lipper
Analytical Services.
THE EUREKA GLOBAL FUND (Trust Shares) ranked 177 out of 319 and 122 out of 164
for the one- and five-year periods, respectively, for the Lipper Global Funds
category as reported by Lipper Analytical Services.
THE EUREKA EQUITY FUND (Trust Shares) ranked 339 out of 1073 and 365 out of 583
for the one- and five-year periods, respectively, in the Lipper Large-Cap Core
Funds category as reported by Lipper Analytical Services.
Lipper rankings are based on total return and do not include the effect of a
sales charge.
THE iMONEYNET FIRST TIER MONEY MARKET AVERAGE represents the average of general
money market funds as reported by iMoneyNet, Inc.
THE iMONEYNET MONEY MARKET U.S. TREASURY AND REPURCHASE AVERAGE represents the
average of U.S. Treasury Money Market Funds as reported by iMoneyNet, Inc.
LIPPER INTERMEDIATE INVESTMENT GRADE DEBT FUNDS CATEGORY is comprised of managed
mutual funds that invest at least 65% of their assets in investment grade debt
issues (rated in the top the four grades) with dollar-weighted average
maturities of five- to ten-years.
LIPPER GLOBAL FUNDS CATEGORY is comprised of managed mutual funds that invest at
least 25% of their portfolio in securities traded outside of the United States
and that may also own U.S. securities.
LIPPER LARGE-CAP CORE FUNDS CATEGORY is comprised of funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) greater than 300% of the
dollar-weighted median market capitalization of the middle 1,000 securities of
the S&P SuperComposite 1500 Index. Large-cap core funds have more latitude in
the companies in which they invest. These funds typically have an average
price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share
growth value, compared to the S&P 500 Index.
LIPPER MONEY MARKET INSTRUMENT FUNDS CATEGORY is comprised of managed mutual
funds that invest in high quality financial instruments rated in the top two
grades with dollar-weighted average maturities of less than 90 days.
LIPPER U.S. TREASURY MONEY MARKET FUNDS CATEGORY is comprised of managed mutual
funds that invest in principally in U.S. Treasury obligations with
dollar-weighted average maturities of less than 90 days. Intend to keep a
constant net asset value.
LEHMAN BROTHERS AGGREGATE BOND INDEX is an unmanaged index composed of the
Lehman Brothers Government/Corporate Index and the Lehman Brothers
Mortgage-Backed Securities Index and includes treasury issues, agency issues,
corporate bond issues and mortgage backed securities.
LEHMAN BROTHERS CREDIT BOND INDEX is an unmanaged index composed of all publicly
issued, fixed-rate, nonconvertible, investment-grade corporate debt. Issues are
rated at least Baa by Moody's Investors Service or BBB by Standard & Poor's, if
unrated by appreciation/depreciation and income as a percentage of the original
investment.
THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX (MSCI WORLD INDEX) is an
unmanaged index which generally reflects the performance of the world's
developed equity markets.
STANDARD & POOR'S (S&P) 500 INDEX is an unmanaged index of 500 selected common
stocks, most of which are listed on the New York Stock Exchange, and is a
measure of the U.S. Stock market as a whole.
PRICE-TO-BOOK RATIO is used to compare a stock's market value to its book value,
calculated by dividing the current closing price of the stock by the latest
quarter's book value. (Book value is simply assets minus liabilities).
PRICE-TO-EARNINGS RATIO is a valuation ratio of a company's current share price
to its per-share earnings. Investors cannot invest directly in an index,
although they can invest in its underlying securities or funds.
i
September 30, 2003
EUREKA INVESTMENT ADVISORS
QUANTITATIVE APPROACH TO INVESTMENT MANAGEMENT
INVESTMENT MANAGEMENT PHILOSOPHY
The Eureka Funds were created to deliver a distinctive investment management
style to investors. Our quantitative approach is designed to remove the
guesswork and confusion from the investment decision process.
While many professional investment managers apply quantitative tools, we believe
that few do so with the rigorous discipline of the Eureka Funds. We believe that
using such tools on a piecemeal basis can taint the process with unintended
bias, errors in judgment and emotional overreaction. To remove these subjective
components, we strictly adhere to the following precepts of the quantitative
philosophy:
- MARKETS DO NOT IMMEDIATELY INCORPORATE ALL INFORMATION INTO ASSET PRICES.
We believe that the market provides a window of time during which we can
uncover and quantitatively process information, thereby exploiting
short-term market opportunities.
- A LARGE NUMBER OF SMALL, ACTIVE POSITIONS IN A PORTFOLIO ARE SUPERIOR TO A
SMALL NUMBER OF LARGE, ACTIVE POSITIONS. As quantitative investment
managers, we believe in the law of large numbers. Therefore, each Eureka
Fund holds an above-average number of positions that closely mirror its
benchmark. Our quantitative approach provides what we believe to be a
superior ability to process, monitor, identify and manage a large number
of small, active positions.
- RISK CAN BE QUANTITATIVELY MEASURED AND QUANTITATIVELY MANAGED. Rather
than "backing into" risk in pursuit of opportunity, we pass each
investment through the filter of quantitative risk assessment. We try to
incur no active risk unless it is intended and understood.
- OPTIMIZATION METHODS ARE OFTEN NECESSARY TO EXPLOIT OPPORTUNITIES WHILE
MANAGING RISK. Only computer-assisted decision-making can determine the
optimum balance of small, active positions. Relying on human judgment
alone often results in missed opportunities.
Each Eureka Fund strives to mirror its benchmark in terms of risk and
diversification. We do not engage in market timing or rate forecasting. Rather,
we seek to add value by exploiting short-term, tactical opportunities as
revealed by our optimization methods.
This time-tested investment philosophy seeks to ensure that your portfolio
maintains targeted risk levels and has the flexibility to respond to changes
when necessary. Whatever the fluctuations in the market, our goal at Eureka
Funds remains constant: To help you strive to meet your financial objectives
today and into the future.
[PHOTO]
BOB BANNON, CFA
Senior Vice President and
Chief Investment Officer
As Chief Investment Officer and head of the Investment Management Department,
Bob Bannon's primary focus is to build upon the existing strengths of the
Investment Management Department and to position Bank of the West (formerly
United California Bank) as a leader in quantitative investment management.
A highly respected authority on the quantitative investment philosophy and
process, Bob has extensive knowledge and experience in global asset allocation,
equity modeling and fixed-income portfolio management. Before joining Bank of
the West during the first quarter of 2000, he served as Managing Director for
Analytic Investors, Inc., a highly regarded Los Angeles quantitative investment
management firm, where he was responsible for market research and the
development and management of investment products and processes. Prior to
joining Analytic, Bob developed fixed-income trading strategies for I.D.E.A. in
New York and worked for Security Pacific National Bank as a financial economist.
Bob holds a graduate degree in econometrics and financial economics from UCLA
and an undergraduate degree in economics from Villanova University. He is a
Chartered Financial Analyst.
1
September 30, 2003
SHAREHOLDER LETTER
DEAR SHAREHOLDER
MARKET OVERVIEW
The 12-month period ended September 30, 2003, was an extremely volatile period
for the markets as a whole, as investors focused on an impending war with Iraq,
terrorism, corporate malfeasance, and a sputtering economy. For almost three
years, and with almost patternistic behavior, U.S. equity markets have
languished, fixed income markets have strengthened, and short-term interest
rates have declined to record lows - a classic financial market response to
economic recession. As our fiscal year-end comes to a close, a long awaited
economic recovery appears to have finally arrived in the U.S. and other markets
around the globe.
EQUITY MARKETS
Fourth quarter of 2002 brought with it the first glimmer of potential change, as
the equity market seemed to have found its trough (at levels not seen since
early 1997) around the second week of October, and began a rebound that lasted
through November, and sputtered into December.
Despite the brief bout of optimism, markets again soured in first quarter of
2003, due to the lingering prospects of war with at least one country, if not
two. The equity market, which made a brief and half-hearted attempt in January,
quickly folded as the political rhetoric heated up in late January. February and
March only added to the high degree of uncertainty, as the economic numbers
suggest that, impending war or not, the economy was still sluggish.
The rapidity with which the U.S. won the second Gulf War, and the perception of
heightened global certainty that followed, helped large-cap stocks rebound in
the second quarter of 2003. For the three-month period ended June 30, 2003 the
Standard and Poor's 500 Index returned in excess of 15%.
The trend in the market seems to be making itself more clear as third quarter
2003 draws to a close. Equity markets moved a bit sideways in July, rallied
sharply in August and continued their growth into September, with only a slight
pull back. The Standard and Poor's 500 Index(1) rose 2.65% in the third quarter,
proving that the 15% return for second quarter was no fluke.
As we move into fourth quarter, despite general pessimism and criticism
centering around U.S. foreign policy and the President's domestic policy, the
markets appear to be taking on a business-as-usual stance after being through
two wars, a terrorist attack, a record-setting bear market and outsized
corporate scandals in the preceding two years.
BOND MARKETS
Fixed-income investments benefited for the majority of the fiscal year providing
their typical "flight-to-safety" function, as skittish equity investors wary of
the struggling stock market sought bonds for their stability, pushing yields
down and prices up.
In first quarter 2003, rates shot up quickly as the potential for U.S. success
against Iraq became apparent. Shorter-term interest rates settled back to lower
yields, however, as continually weak economic numbers suggested a possibility
for future rate cuts, although longer-term maturities retained their now-higher
yield levels. The Fed held short-term rates
(1) For a complete definition or description of terms, please refer to the
Glossary of Terms on page (i).
2
September 30, 2003
SHAREHOLDER LETTER
steady throughout the first quarter, citing the impending war as a factor that
clouded their ability to gauge the economy.
Contrary to expectation, given the rush to equities in the second quarter, there
was no major exodus out of the bond markets during most of the second quarter.
Bonds averaged between 2.5% and 3.5% during the quarter, with lower grade
corporates posting the largest gains. This trend faded quickly towards the end
of the quarter, as the markets began to anticipate further easing by the Fed and
most segments of the bond market gave back a portion of their gains.
It wasn't until late in the third quarter that bonds took a tumble, falling
nearly 3.4% in the month of July alone. Fears that the Fed might continue to
ease, coupled with a shockingly strong equity market caught the bond market
off-guard, and set off a wave of inflationary fears. Bonds have since regained
their footing, recovering some of that one month decline by the end of the
quarter, aided in large part by a sense that further Fed rate cuts are less and
less likely as the equity markets rebound.
OUTLOOK
While we cannot predict what the future has in store, there is strong suggestion
that the economy and equity market could continue to rebound, supported by an
improving economy and ample liquidity. Going forward, we will continue to adhere
to our disciplined, quantitative investment philosophy, which has served us well
during the past year's turbulent markets.
Thank you for your continued confidence in the Eureka Funds.
Sincerely,
Eureka Investment Advisors
1
September 30, 2003
EUREKA U.S. TREASURY OBLIGATIONS FUND
COMMENTARY
INVESTMENT PHILOSOPHY
The Eureka U.S. Treasury Obligations Fund seeks to provide current income
consistent with maintaining liquidity and stability of principal. The Fund
invests exclusively in short-term obligations issued or guaranteed by the U.S.
Treasury, and in repurchase agreements fully collateralized by U.S. Treasury
securities.
The Fund is designed for individual or institutional investors whose primary
considerations are stability, capital preservation, and low risk. It can also
serve as a temporary investment with a competitive return for funds awaiting a
more permanent investment in other areas.
FUND PERFORMANCE
For the fiscal year ending September 30, 2003, the U.S. Treasury Obligations
Fund (Trust Shares) outperformed 92% of its peers in the Lipper U.S. Treasury
Money Market Funds category(1). For the same time period, the Fund returned
0.87% (Trust Shares), compared to a return of 0.55% for both the Lipper peer
category and the iMoneyNet U.S. Treasury & Repurchase Funds average.(1)
The Federal Reserve's accomodative credit policy resulted in continued declining
money market rates through the second quarter 2003. However, in the latter half
of the second quarter, the economy experienced a rebound that was sufficient to
encourage the market into turning rates upward. Rates continued to trend
higher-albeit slowly-through the third quarter 2003.
Our success in the period was primarily due to security selection. Maturities
were laddered throughout the allowable maturity range with the Funds' weighted
average maturity generally near the middle of the spectrum.
OUTLOOK
We will continue to monitor the Federal Reserve policy and the market
environment as we seek out securities that fit within our investment philosophy.
7-DAY YIELD(2) 30-DAY YIELD
(9/30/03) (9/30/03)
Class A Shares 0.28% 0.30%
Class B Shares 0.07% 0.10%
Trust Shares 0.53% 0.55%
(1) For a complete definition or description of terms, please refer to the
Glossary of Terms on page (i).
(2) The 7-day yield is a more accurate reflection of the Fund's current
performance than the total return. The yield information set forth reflects the
waiver of a portion of the Fund's fees for certain periods; without waiver of
fees, the yield would have been lower.
An investment in the Fund is not insured or guaranteed by the FDIC or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund. The performance data quoted represents past performance and is not an
indication of future results.
4
September 30, 2003
EUREKA PRIME MONEY MARKET FUND
COMMENTARY
INVESTMENT PHILOSOPHY
The Eureka Prime Money Market Fund pursues a high level of current income,
consistent with the ability to maintain liquidity and stability of principal.
The Fund may invest in repurchase agreements, commercial paper, corporate notes,
U.S. government securities, and other money market instruments for liquidity.
The low-risk, high-liquidity character of the Fund makes it a useful primary
investment vehicle for conservative, risk-averse investors and, for others, as a
temporary investment complementing a longer-term, more diversified strategy.
FUND PERFORMANCE
For the fiscal year ending September 30, 2003, the Prime Money Market Fund
(Trust Shares) outperformed 83% of its peers in the Lipper Money Market
Instrument Funds category(1). For the same time period, the Fund returned 0.87%
(Trust Shares), compared to a return of 0.56% for the Lipper peer category and
0.62% for the iMoneyNet First Tier Money Market Funds average.
Short-term rates continued to decline through June 2003 as the Federal Reserve
lowered rates to their lowest level since 1958. The impact of the recession
continued to affect many U.S. companies through 2002 and into the second quarter
of 2003, resulting in poor financial results and weakening corporate credit
quality. Late in second quarter 2003, the markets found some stability as the
overall economy posted positive results and companies reported improved earnings
and outlook.
Our success in the period was primarily due to security selection. Maturities
were laddered throughout the allowable maturity range with the Funds' weighted
average maturity generally near the middle of the spectrum.
OUTLOOK
The stabilizing trend of improved economic and corporate results established in
the second quarter has continued through the third quarter and will hopefully
continue onwards. Going forward, we will continue to evaluate the Federal
Reserve policy, as well as the bond and credit markets, in an effort to most
optimally position the Fund.
7-DAY YIELD(2) 30-DAY YIELD
(9/30/03) (9/30/03)
Class A Shares 0.29% 0.30%
Class B Shares 0.04% 0.04%
Trust Shares 0.53% 0.55%
(1) For a complete definition or description of terms, please refer to the
Glossary of Terms on page (i)
(2) The 7-day yield is a more accurate reflection of the Fund's current
performance than the total return. The yield information set forth reflects the
waiver of a portion of the Fund's fees for certain periods; without waiver of
fees, the yield would have been lower.
An investment in the Fund is not insured or guaranteed by the FDIC or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund. The performance data quoted represents past performance and is not an
indication of future results.
5
September 30, 2003
EUREKA INVESTMENT GRADE BOND FUND
COMMENTARY
INVESTMENT PHILOSOPHY
With a goal of providing a relatively high level of income, while simultaneously
preserving shareholder capital, we use a variety of disciplines to evaluate the
current interest rate environment and credit implications. Our approach is
conservative, yet opportunistic.
Using multi-dimensional evaluative techniques, we select the most attractive
sectors and individual securities of the fixed-income market within the
constraints of our risk management framework. The Fund's overall risk
characteristics--duration, sector allocation and yield level--are structured to
resemble the Fund's benchmark, the Lehman Brothers Aggregate Bond Index.
FUND PERFORMANCE
For the fiscal year ending September 30, 2003, the Investment Grade Bond Fund
(Trust Shares) outperformed 16% of its peers in the Lipper Intermediate
Investment Grade Debt Funds category(1). For the same time period, the Fund
returned 4.16% (Trust Shares), compared to a return of 5.40% for the benchmark,
the Lehman Brothers Aggregate Bond Index.(1)
The main factor leading to the underperformance was the portfolio's relatively
conservative credit strategy at a time when lower credit quality corporate bonds
outperformed other higher credit quality securities. The Lehman Brothers Credit
Bond Index(1), which comprises 27% of the Lehman Brothers Aggregate Bond Index,
outperformed comparable-duration U.S. Treasuries by 6.14%.
OUTLOOK
Going forward, we will continue to strive to add value via sector bets while
maintaining a duration neutral to our benchmark, the Lehman Brothers Aggregate
Bond Index. Specifically, corporate spreads across the entire quality spectrum
are the narrowest they have been over the past three years. As a result, we will
not be looking to add substantial positions in that sector. The same holds true,
but to a lesser extent, for agency bonds and mortgage backed securities. We
believe that this culmination of factors will leave the Fund holding a greater
percentage of U.S. Treasury securities than in previous periods.
OBJECTIVE:
The Eureka Investment Grade Bond Fund seeks a high level of income, consistent
with preservation of capital. To achieve this objective, the Fund intends to
invest in a range of fixed-income securities, including U.S. Treasury securities
(bonds, notes and bills), U.S. agency securities, mortgage-related securities,
corporate securities, depository institution obligations and repurchase
agreements. Under normal market conditions, the Fund will invest at least 80% of
its net assets in bonds (i.e., debt securities) that are investment-grade
securities, as determined by NRSRO ratings or, if unrated, as determined by Bank
of the West to be of comparable quality.
INCEPTION DATE:
A Shares 02/03/98
B Shares 02/02/01
Trust Shares 11/01/97
BENCHMARK:
Lehman Brothers Aggregate
Bond Index
(1) For a complete definition or description of terms, please refer to the
Glossary of Terms on page (i).
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Investment return and net
asset value will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. Performance is as of date indicated
and may differ from current performance due to market volatility. To obtain more
current performance information, please call 1-888-890-8121 or visit our website
at www.eurekafunds.com.
6
September 30, 2003
EUREKA INVESTMENT GRADE BOND FUND REVIEW
FUND INFORMATION(1)
------------------
30-Day SEC Yield: (A Shares)....... 2.52%
(B Shares)....... 1.89%
(Trust).......... 2.87%
Average Maturity:.................. 6.82 Years
Average Quality: (Moody's)......... AAA
Effective Duration:................ 4.53 Years
Number of Issues:.................. 168
CREDIT QUALITY(1)
-----------------
U.S. Treasury/Agency .............. 67.3%
Aaa ............................... 9.1
Aa ................................ 4.6
A ................................. 7.7
Baa ............................... 9.9
Cash .............................. 1.4
[PIE CHART]
SECTOR WEIGHTINGS(1)
--------------------
INTERNATIONAL 0.7%
OTHER 0.7%
CASH 1.4%
UTILITIES 3.5%
ASSET BACKED 4.3%
FINANCE 8.9%
TREASURY 11.3%
INDUSTRIAL 13.5%
AGENCY 23.4%
MORTGAGE RELATED 32.3%
[GRAPH]
GROWTH OF $10,000
-----------------
Since Inception
Class A Class B Trust Lehman Brothers
Shares(2) Shares(3) Shares Aggregate Bond Index
11/1/97 9653 10000 10000 10000
12/97 9768 10108 10124 10147
9951 10243 10283 10304
10173 10453 10518 10545
10565 10838 10931 10991
12/98 10595 10839 10959 11028
10505 10738 10883 10972
10352 10563 10731 10875
10396 10589 10784 10949
12/99 10353 10524 10745 10936
10577 10733 10985 11177
10716 10854 11137 11371
11041 11163 11483 11714
12/00 11511 11605 11967 12208
11817 11904 12306 12578
11839 11917 12337 12648
12401 12446 12932 13231
12/01 12288 12321 12822 13236
12248 12259 12789 13249
12701 12676 13270 13740
13290 13239 13896 14370
12/02 13454 13363 14076 14596
13588 13470 14225 14799
13874 13729 14535 15168
9/03 13821 13537 14474 15147
AVERAGE ANNUAL TOTAL RETURN
YEAR TO DATE ONE YEAR FIVE YEAR SINCE INCEPTION
(9/30/03) (9/30/03) (9/30/03) (11/1/97 TO 9/30/03)
(AGGREGATE)
NAV LOAD* NAV LOAD* NAV LOAD* NAV LOAD*
--- ----- --- ----- --- ----- --- -----
Class A Shares(2) 2.73% -0.88% 3.99% 0.33% 5.52% 4.77% 6.26% 5.62%
Class B Shares(3) 2.05% -1.94% 3.01% -0.98% 4.70% 4.37% 5.38% 5.25%
Trust Shares (no sales charge) 2.83% -- 4.16% -- 5.78% -- 6.45% --
The growth of $10,000 chart represents a hypothetical investment in the Eureka
Investment Grade Bond Fund and its appropriate benchmark. The investment
represents the reinvestment of dividends and capital gains in the Fund. The
Lehman Brothers Aggregate Bond Index is an unmanaged index that is generally
representative of the domestic bond market as a whole. This index does not
reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The performance of the Fund reflects the
deduction of fees for these services. The indice cannot be invested in directly;
however, you can invest in the underlying funds or securities.
* The Class A Shares reflects the maximum sales load of 3.50%. The Class B
Shares reflects the applicable contingent deferred sales charge, maximum of
4.00%.
(1) The portfolio holdings are subject to change.
(2) The performance shown for the Class A Shares prior to its inception on
2/3/98 reflects the performance history of the Trust Shares dating back to
11/1/97. The performance has been adjusted to reflect the applicable 12b-1 fees
and maximum sales charge of 3.50%.
(3) The Class B Shares were initially offered for purchase effective 2/1/01,
however no shareholder activity occurred until 2/2/01. The performance of the
Class B Shares prior to its inception on 2/1/01 reflects the performance history
of the Class A Shares (without sales charge). The performance has been adjusted
to reflect the applicable 12b-1 fees and applicable contingent deferred sales
charge.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Investment return and net
asset value will fluctuate so that an investor's shares, when redeemed may be
worth more or less than the original cost. Performance is as of date indicated
and may differ from current performance due to market volatility. To obtain more
current performance information, please call 1-888-890-8121 or visit our website
at www.eurekafunds.com.
7
September 30, 2003
EUREKA GLOBAL FUND +
COMMENTARY
INVESTMENT PHILOSOPHY
The investment objective of the Global Fund is to seek long-term capital
appreciation, coupled with risk management, by investing in a globally
diversified portfolio of stocks.
When selecting individual stocks for the portfolio, we employ a tactical,
opportunistic approach. First, we analyze the performance and risk of each stock
in the Fund's universe, relative to its benchmark, the Morgan Stanley Capital
International (MSCI) World Index(1). Next, we seek to construct a portfolio of
stocks that, when combined, offer the best-expected return, given our ability to
assume risk.
According to the quantitative approach, the market attaches positive or negative
rewards to various stock characteristics or "factors." These include, among
others, price-to-earnings, price-to-book, momentum and earnings surprises. The
total potential reward for holding a stock will be a sum of all such factors.(1)
By using a multi-factor stock selection process, we attempt to identify all
relevant factors, including a stock's inherent reward potential, and construct a
portfolio that mirrors the benchmark in terms of industry, sector, style, and
market capitalization.
FUND PERFORMANCE
For the fiscal year ending September 30, 2003, the Global Fund (Trust Shares)
outperformed 44% of its peers in the Lipper Global Funds category(1). For the
same time period, the Fund returned 22.34% (Trust Shares), compared to a return
of 26.02% for the benchmark, the Morgan Stanley Capital International (MSCI)
World Index.
The Fund's disciplined, quantitative investment approach served us well in an
uncertain economy and unusually turbulent market. Our stock-selection model did
well this year, which enabled us to provide strong performance.
OUTLOOK
Our adherence to our quantitative investment philosophy remains constant,
regardless of market cycles. Going forward, we will continue to focus on tight
risk management, use a disciplined stock selection analysis to seek strong
performers, and strive to outperform our benchmark, the Morgan Stanley Capital
International (MSCI) World Index.
OBJECTIVE:
The investment objective of the Eureka Global Fund is to seek long-term capital
growth. The Fund will invest in common stocks of U.S. and foreign issuers,
diversifying investments across countries, currencies, and economic sectors
using quantitative asset selection process. The Fund intends to assume a level
of risk commensurate with a globally diversified portfolio of
large-capitalization stocks.
INCEPTION DATE:
A Shares 02/03/98
B Shares 02/02/01
Trust Shares 11/01/97
BENCHMARK:
Morgan Stanley Capital
International (MSCI) World
Index
(1) For a complete definition or description of terms, please refer to the
Glossary of Terms on page (i).
+International investing involves increased risk and volatility.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Investment return and net
asset value will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. Performance is as of date indicated
and may differ from current performance due to market volatility. To obtain more
current performance information, please call 1-888-890-8121 or visit our website
at www.eurekafunds.com.
8
September 30, 2003
EUREKA GLOBAL FUND REVIEW
TOP 10 EQUITY HOLDINGS(1)
-------------------------
Exxon Mobil Corp ..................................2.9%
Microsoft Corp ....................................2.4%
Merck & Company, Inc ..............................2.1%
Procter & Gamble Co ...............................1.6%
IBM Corp ..........................................1.3%
Johnson & Johnson .................................1.3%
Hartford Financial Services Group, Inc. ...........1.3%
General Electric Co. ..............................1.2%
Countrywide Credit Industries, Inc. ...............1.2%
Vodafone Group PLC ................................1.2%
[PIE CHART]
EQUITY COUNTRY WEIGHTINGS(1)
----------------------------
GERMANY 2.4%
AUSTRALIA 2.2%
CANADA 2.5%
SWITZERLAND 2.9%
FRANCE 3.8%
JAPAN 9.6%
OTHER 9.7%
U.K. 10.8%
U.S.A. 56.1%
[GRAPH]
GROWTH OF $10,000
-----------------
Since Inception
Class A Class B Trust MSCI
Shares(2) Shares(3) Shares World Index
11/1/97 9497 10000 10000 10000
12/97 9609 10109 10123 10304
10578 11109 11145 11791
10797 11316 11376 12041
9988 10457 10534 10608
12/98 11295 11797 11912 12859
11421 11911 12055 13329
11760 12246 12423 13977
11566 12026 12229 13781
12/99 12661 13140 13395 16118
12783 13234 13524 16295
12630 13054 13374 15729
12397 12791 13138 14949
12/00 12031 12394 12761 14036
10940 11259 11605 12243
11175 11501 11855 12582
10202 10500 10846 10783
12/01 10852 11160 11546 11717
10907 11194 11592 11767
9889 10132 10532 10709
8080 8267 8596 8749
12/02 8572 8752 9131 9427
8062 8215 8600 8961
9364 9524 9997 10507
9/03 9841 9905 10517 11026
AVERAGE ANNUAL TOTAL RETURN
YEAR TO DATE ONE YEAR FIVE YEAR SINCE INCEPTION
(9/30/03) (9/30/03) (9/30/03) (11/1/97 TO 9/30/03)
(AGGREGATE)
NAV LOAD* NAV LOAD* NAV LOAD* NAV LOAD*
--- ----- --- ----- --- ----- --- -----
Class A Shares(2) 14.81% 9.01% 21.80% 15.75% -0.29% -1.31% 0.60% -0.27%
Class B Shares(3) 14.19% 10.19% 20.90% 16.90% -0.90% -1.26% -0.01% -0.16%
Trust Shares (no sales charge) 15.17% -- 22.34% -- -0.03% -- 0.86%
The growth of $10,000 chart represents a hypothetical investment in the Eureka
Global Fund and its appropriate benchmark. The investment represents the
reinvestment of dividends and capital gains in the Fund. The Morgan Stanley
Capital International World Index is an unmanaged index that generally reflects
the performance of the world's developed equity markets. The index does not
reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The performance of the Fund reflects the
deduction of fees for these services. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
* The Class A Shares reflects the maximum sales load of 5.00%. The Class B
Shares reflects the applicable contingent deferred sales charge, maximum of
4.00%.
(1) The portfolio holdings are subject to change.
(2) The performance shown for the Class A Shares prior to its inception on
2/3/98 reflects the performance of the Trust Shares. The performance has been
adjusted to reflect the applicable 12b-1 fees and maximum sales charge of 5.00%.
(3) The Class B Shares were initially offered for purchase effective 2/1/01,
however no shareholder activity occurred until 2/2/01. The performance of the
Class B Shares prior to its inception on 2/1/01 reflects the performance of the
Class A Shares (without sales charge). The performance has been adjusted to
reflect the applicable 12b-1 fees and applicable contingent deferred sales
charge.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Investment return and net
asset value will fluctuate so that an investor's shares, when redeemed may be
worth more or less than the original cost. Performance is as of date indicated
and may differ from current performance due to market volatility. To obtain more
current performance information, please call 1-888-890-8121 or visit our website
at www.eurekafunds.com.
9
September 30, 2003
EUREKA EQUITY FUND
COMMENTARY
INVESTMENT PHILOSOPHY
Long-term capital growth and rigorous risk management are the key objectives of
the Eureka Equity Fund. To achieve these goals, the Fund employs a quantitative
investment approach, in which the portfolio construction follows a two-step
process. First, we analyze the performance and risk of each stock in the Fund's
universe, relative to its benchmark, the S&P 500 Index(1). Next, we seek to
construct a portfolio of stocks that, when combined, offer the best expected
potential return, given our ability to assume risk.
According to the quantitative approach, the market attaches positive or negative
rewards to various stock characteristics, or "factors." These include, among
others, price-to-earnings(1), price-to-book(1), momentum and earnings surprises.
The total potential reward for holding a stock will be a sum of all such
factors.
By using a multi-factor stock selection process, we attempt to identify all
relevant factors, including a stock's inherent reward potential, and construct a
portfolio that mirrors the benchmark in terms of industry, sector, style, and
market capitalization.
FUND PERFORMANCE
For the fiscal year ending September 30, 2003, the Equity Fund (Trust Shares)
outperformed 68% of its peers in the Lipper Large-Cap Core Funds category(1).
For the same time period, the Fund returned 22.40% (Trust Shares), compared to a
return of 24.37% for the benchmark, the Standard & Poor's 500 Index.(1)
The Fund's disciplined, quantitative investment approach served us well in an
uncertain economy and unusually turbulent market. Our stock-selection model did
well this year, which enabled us to provide above-average returns relative to
our peers.
OUTLOOK
Our adherence to our quantitative investment philosophy remains constant,
regardless of market cycles. Going forward, we will continue to focus on tight
risk management, use a disciplined stock selection analysis to seek strong
performers, and strive to outperform our benchmark, the Standard & Poor's 500
Index.
OBJECTIVE:
The Eureka Equity Fund seeks long-term capital growth. The Fund intends to
invest in the common stocks of corporations representing a broad cross-section
of the U.S. economy. The Fund expects to have a level of risk commensurate with
that represented by a broadly diversified portfolio of U.S. common stocks, such
as the Standard & Poor's 500 Stock Index. Under normal market conditions, the
Fund will invest at least 80% of its net assets in common stocks.
INCEPTION DATE:
A Shares 02/03/98
B Shares 02/02/01
Trust Shares 11/01/97
BENCHMARK:
Standard & Poor's 500
Stock Index
(1) For a complete definition or description of terms, please refer to the
Glossary of Terms on page (i).
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Investment return and net
asset value will fluctuate so that an investor's shares, when redeemed may be
worth more or less than the original cost. Performance is as of date indicated
and may differ from current performance due to market volatility. To obtain more
current performance information, please call 1-888-890-8121 or visit our website
at www.eurekafunds.com.
10
September 30, 2003
EUREKA EQUITY FUND REVIEW
TOP 10 EQUITY HOLDINGS(1)
-------------------------
Microsoft Corp......................4.0%
General Electric Co.................3.1%
Exxon Mobil Corp....................3.0%
Wal-Mart Stores, Inc................2.3%
Pfizer, Inc.........................2.2%
Procter & Gamble Co.................2.1%
Intel Corp..........................2.1%
Citigroup, Inc......................2.1%
Merck & Company, Inc................2.0%
IBM Corp............................1.9%
[PIE CHART]
SECTOR WEIGHTINGS(1)
--------------------
CASH 0.7%
TRANSPORTATION 1.1%
UTILITIES 1.5%
INDUSTRIALS 2.7%
COMMERCIAL SERVICES 2.8%
BASIC MATERIAL 4.0%
TELECOMMUNICATIONS 4.2%
CONSUMER SERVICES 4.4%
ENERGY 6.6%
CONSUMER (CYCLICAL) 7.4%
CONSUMER (NON-CYCLICAL) 9.6%
HEALTH CARE 14.3%
TECHNOLOGY 17.5%
FINANCIAL SERVICES 23.2%
[GRAPH]
GROWTH OF $10,000
-----------------
Since Inception
Class A Class B Trust Standard & Poor's
Shares(2) Shares(3) Shares 500 Stock Index
11/1/97 9497 10000 10000 10000
12/97 10020 10538 10555 10643
11416 11981 12029 12128
11813 12372 12452 12528
10436 10910 11008 11282
12/98 12701 13258 13410 13685
13145 13679 13871 14367
14018 14565 14805 15380
12977 13470 13728 14419
12/99 14699 15220 15550 16565
14874 15380 15753 16945
14477 14940 15340 16494
14280 14705 15137 16335
12/00 13109 13476 13908 15057
11313 11618 12017 13272
11978 12262 12704 14048
10285 10521 10921 11986
12/01 11280 11521 11992 13267
11354 11574 12091 13304
9834 9994 10473 11521
8180 8290 8711 9531
12/02 8725 8858 9311 10335
8438 8541 9013 10009
9700 9803 10372 11551
9/03 9953 9996 10663 11856
AVERAGE ANNUAL TOTAL RETURN
YEAR TO DATE ONE YEAR FIVE YEAR SINCE INCEPTION
(9/30/03) (9/30/03) (9/30/03) (11/1/97 TO 9/30/03)
(AGGREGATE)
NAV LOAD* NAV LOAD* NAV LOAD* NAV LOAD*
--- ----- --- ----- --- ----- --- -----
Class A Shares(2) 14.07% 8.46% 21.68% 15.56% -0.94% -1.96% 0.80% -0.08%
Class B Shares(3) 13.49% 9.49% 21.27% 17.27% -1.62% -1.84% 0.09% -0.01%
Trust Shares (no sales charge) 14.52% -- 22.40% -- -0.63% -- 1.09% --
The growth of $10,000 chart represents a hypothetical investment in the Eureka
Equity Fund and its appropriate benchmark. The investment represents the
reinvestment of dividends and capital gains in the Fund. The S&P 500 Index is an
unmanaged index that generally reflects the performance of the U.S. stock market
as a whole. This index does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Fund reflects the deduction of fees for these services.
Investors cannot directly invest in an index, although they can invest in the
underlying securities.
* The Class A Shares reflects the maximum sales load of 5.00%. The Class B
Shares reflects the applicable contingent deferred sales charge, maximum of
4.00%.
(1) The portfolio holdings are subject to change.
(2) The performance shown for the Class A Shares prior to its inception on
2/3/98 reflects the performance of the Trust Shares. The performance has been
adjusted to reflect the applicable 12b-1 fees and maximum sales charge of 5.00%.
(3) The Class B Shares were initially offered for purchase effective 2/1/01,
however no shareholder activity occurred until 2/2/01. The performance of the
Class B Shares prior to its inception on 2/1/01 reflects the performance of the
Class A Shares (without sales charge). The performance has been adjusted to
reflect the applicable 12b-1 fees and applicable contingent deferred sales
charge.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Investment return and net
asset value will fluctuate so that an investor's shares, when redeemed may be
worth more or less than the original cost. Performance is as of date indicated
and may differ from current performance due to market volatility. To obtain more
current performance information, please call 1-888-890-8121 or visit our website
at www.eurekafunds.com.
11
U.S. TREASURY OBLIGATIONS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 2003
<Table>
<Caption>
PRINCIPAL AMORTIZED
AMOUNT COST
- ------------------------------------------------------
U.S. GOVERNMENT GUARANTEED SECURITIES (3.1%)
Israel Aid
1.86%, 05/15/04 (b) $ 490,000 $ 486,086
------------
Private Export Funding Corp.
7.03%, 10/31/03 1,850,000 1,858,887
5.31%, 11/15/03 (c) 810,000 813,949
------------
2,672,836
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT GUARANTEED
SECURITIES 3,158,922
- ------------------------------------------------------
U.S. TREASURY BONDS (10.0%)
11.88%, 11/15/03 10,000,000 10,129,808
- ------------------------------------------------------
U.S. TREASURY NOTES (35.0%)
2.75%, 10/31/03 10,000,000 10,014,063
4.25%, 11/15/03 10,000,000 10,038,452
3.00%, 01/31/04 10,000,000 10,064,173
5.88%, 02/15/04 5,000,000 5,089,193
- ------------------------------------------------------
TOTAL U.S. TREASURY NOTES 35,205,881
- ------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGES (12.5%)
Small Business Administration*
Pool #50191
2.13%, 10/01/03 50,693 50,693
Pool #501967
2.13%, 10/01/03 250,824 250,824
Pool #502221
2.00%, 10/01/03 304,763 304,909
Pool #502610
1.88%, 10/01/03 86,779 86,779
Pool #502988
1.75%, 10/01/03 119,200 119,200
Pool #503274
1.50%, 10/01/03 162,365 162,365
Pool #503308
1.50%, 10/01/03 288,061 288,061
Pool #503696
1.50%, 10/01/03 1,010,317 1,009,523
Pool #503962
1.75%, 10/01/03 283,648 283,648
Pool #504228
1.50%, 10/01/03 189,992 189,992
Pool #504824
1.63%, 10/01/03 626,616 624,891
Pool #504996
1.75%, 10/01/03 1,583,058 1,583,058
Pool #505026
1.75%, 10/01/03 625,773 625,613
</Table>
<Table>
<Caption>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT COST
- ------------------------------------------------------
Pool #505128
1.75%, 10/01/03 $1,844,511 $ 1,844,007
Pool #505160
1.63%, 10/01/03 73,272 73,189
Pool #505236
1.65%, 10/01/03 1,766,829 1,764,296
Pool #505303
1.55%, 10/01/03 585,609 585,609
Pool #505341
1.45%, 10/01/03 2,007,184 2,006,597
Pool #505344
1.45%, 10/01/03 784,257 783,934
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES
12,637,188
- ------------------------------------------------------
REPURCHASE AGREEMENTS (34.2%)
Bank of America Corp.
0.90%, dated 09/30/03,
due 10/01/03, repurchase
price $17,000,425
(collateralized by U.S.
Treasury Notes) 17,000,000 17,000,000
Prudential, Inc. 0.95%,
dated 09/30/03, due
10/01/03, repurchase
price $17,449,461
(collateralized by U.S.
Treasury Bonds) 17,449,000 17,449,000
- ------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 34,449,000
- ------------------------------------------------------
INVESTMENT COMPANY (4.2%)
BlackRock Provident
Institutional T-Fund 4,250,000 4,250,000
- ------------------------------------------------------
TOTAL INVESTMENTS (AMORTIZED COST
$99,830,799) (a) -- 99.0% 99,830,799
- ------------------------------------------------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.0% 1,016,668
- ------------------------------------------------------
NET ASSETS -- 100.0% $100,847,467
- ------------------------------------------------------
</Table>
- ---------------
(a) Cost and value for financial reporting and federal income tax purposes are
the same.
(b) Rate disclosed represents effective yield at September 30, 2003.
(c) Rule 144A, Section 4(2) or other security which is restricted as to resale
to institutional investors. The Advisor, using board approved procedures,
has deemed these securities to be liquid.
* Denotes variable rate security. Rate presented represents rate in effect on
September 30, 2003. Maturity date reflects next rate change date.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
12
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 2003
<Table>
<Caption>
PRINCIPAL AMORTIZED
AMOUNT COST
- ------------------------------------------------------
COMMERCIAL PAPER (b) (10.3%)
FINANCE & BANKING (5.2%)
Barclays US Funding LLC
1.06%, 10/31/03 $ 6,000,000 $ 5,994,700
Westpac Banking Corp.
1.06%, 11/13/03 4,250,000 4,244,619
Xtra, Inc. (c)
1.05%, 10/02/03 2,625,000 2,624,923
1.05%, 10/15/03 1,000,000 999,592
------------
13,863,834
------------
INSURANCE (2.7%)
Alfa Corp.
1.05%, 10/20/03 7,000,000 6,996,121
------------
RETAIL (2.4%)
7-Eleven, Inc.
1.06%, 10/16/03 1,400,000 1,399,382
1.05%, 10/20/03 5,000,000 4,997,229
------------
6,396,611
- ------------------------------------------------------
TOTAL COMMERCIAL PAPER 27,256,566
- ------------------------------------------------------
CORPORATE BONDS (11.3%)
CHEMICALS (0.1%)
E.I. du Pont de Nemours
and Co.
8.13%, 03/15/04 190,000 195,929
------------
CONSUMER GOODS & SERVICES (0.4%)
Procter & Gamble Co.
8.00%, 11/15/03 935,000 942,596
------------
FINANCE & BANKING (9.8%)
American Express Travel
5.63%, 01/22/04 3,000,000 3,039,521
Associates Corporation of
North America
5.75%, 11/01/03 211,000 211,796
5.50%, 02/15/04 115,000 116,797
5.80%, 04/20/04 1,277,000 1,308,844
Bank of America Corp.
5.75%, 03/01/04 195,000 198,577
6.63%, 06/15/04 502,000 521,560
6.13%, 07/15/04 561,000 582,332
Bear Stearns Companies,
Inc.
6.63%, 01/15/04 734,000 745,057
6.15%, 03/02/04 4,092,000 4,175,738
</Table>
<Table>
<Caption>
PRINCIPAL AMORTIZED
AMOUNT COST
- ------------------------------------------------------
Citigroup Global Markets
Holdings, Inc.
6.63%, 11/15/03 $ 200,000 $ 201,314
7.00%, 03/15/04 1,824,000 1,871,517
Citigroup, Inc.
5.70%, 02/06/04 405,000 411,206
5.80%, 03/15/04 2,198,000 2,243,785
General Electric Capital
Corp.
6.81%, 11/03/03 757,000 760,847
8.68%, 01/14/04 150,000 153,157
7.89%, 02/11/04 500,000 511,537
8.09%, 04/01/04 20,000 20,643
5.38%, 04/23/04 115,000 117,757
7.25%, 05/03/04 1,371,000 1,420,341
Heller Financial, Inc.
6.00%, 03/19/04 2,450,000 2,504,027
Merrill Lynch & Company,
Inc.
5.88%, 01/15/04 700,000 709,490
5.70%, 02/06/04 525,000 533,082
Morgan Stanley
5.63%, 01/20/04 247,000 250,273
Morgan Stanley Group, Inc.
6.13%, 10/01/03 600,000 600,000
Toyota Motor Credit Corp.
5.63%, 11/13/03 300,000 301,455
Wells Fargo & Co.
6.63%, 07/15/04 170,000 177,064
Wells Fargo Financial,
Inc.
6.00%, 02/01/04 480,000 487,475
7.20%, 04/01/04 20,000 20,564
5.45%, 05/03/04 1,375,000 1,409,113
6.63%, 07/15/04 80,000 83,314
------------
25,688,183
------------
INSURANCE (0.2%)
Marsh & McLennan
Companies, Inc.
6.63%, 06/15/04 500,000 518,957
------------
RETAIL (0.4%)
Wal-Mart Stores, Inc.
7.50%, 05/15/04 713,000 740,373
6.55%, 08/10/04 413,000 431,591
------------
1,171,964
------------
SERVICES (0.4%)
Pitney Bowes, Inc.
5.50%, 04/15/04 1,220,000 1,248,091
- ------------------------------------------------------
TOTAL CORPORATE BONDS 29,765,720
- ------------------------------------------------------
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
13
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
PRINCIPAL AMORTIZED
AMOUNT COST
- ------------------------------------------------------
U.S. GOVERNMENT SPONSORED ENTERPRISE &
AGENCY DEBENTURES (18.3%)
FEDERAL FARM CREDIT BANK (2.7%)
5.15%, 12/02/03 $ 1,000,000 $ 1,006,952
5.07%, 12/15/03 300,000 302,473
5.65%, 12/29/03 500,000 505,222
5.40%, 01/23/04 525,000 531,317
6.88%, 05/06/04 200,000 206,622
5.00%, 05/10/04 4,495,000 4,598,105
------------
7,150,691
------------
FEDERAL HOME LOAN BANK (7.0%)
4.78%, 10/15/03 100,000 100,127
4.83%, 10/15/03 100,000 100,129
1.39%, 11/05/03 * 200,000 199,959
5.35%, 11/06/03 400,000 401,597
5.14%, 11/12/03 100,000 100,442
3.13%, 11/14/03 1,600,000 1,603,528
6.38%, 11/14/03 90,000 90,549
5.13%, 11/17/03 1,170,000 1,175,576
5.28%, 11/19/03 1,000,000 1,005,346
1.55%, 12/01/03 1,000,000 1,000,491
5.26%, 12/22/03 1,000,000 1,008,719
5.51%, 01/20/04 500,000 506,576
5.51%, 01/26/04 100,000 101,348
5.13%, 01/28/04 715,000 723,772
5.47%, 01/28/04 200,000 202,791
6.00%, 02/04/04 250,000 254,045
3.25%, 02/13/04 500,000 503,848
3.75%, 02/13/04 500,000 504,334
5.50%, 02/24/04 500,000 508,473
5.66%, 03/17/04 800,000 816,681
5.51%, 04/26/04 500,000 511,780
5.33%, 05/05/04 550,000 563,002
1.13%, 05/13/04 500,000 499,457
3.38%, 05/14/04 2,500,000 2,532,599
4.88%, 05/14/04 500,000 511,300
3.38%, 06/15/04 500,000 506,903
5.50%, 06/15/04 300,000 308,836
6.20%, 06/23/04 2,000,000 2,071,674
------------
18,413,882
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (2.7%)
5.00%, 01/15/04 3,000,000 3,033,903
5.25%, 02/15/04 500,000 507,233
3.50%, 02/20/04 2,000,000 2,019,583
6.31%, 02/26/04 450,000 459,279
6.72%, 05/28/04 500,000 517,472
3.00%, 07/15/04 500,000 505,870
------------
7,043,340
------------
</Table>
<Table>
<Caption>
PRINCIPAL AMORTIZED
AMOUNT COST
- ------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (2.5%)
5.45%, 10/10/03 $ 2,100,000 $ 2,102,240
5.33%, 10/20/03 300,000 300,627
4.75%, 11/14/03 435,000 436,749
3.13%, 11/15/03 500,000 501,272
5.38%, 11/17/03 800,000 804,324
5.52%, 11/17/03 500,000 502,680
5.41%, 12/15/03 300,000 302,349
5.50%, 12/29/03 500,000 505,164
5.51%, 01/12/04 500,000 506,035
4.75%, 03/15/04 700,000 711,237
6.57%, 07/26/04 25,000 26,068
------------
6,698,745
------------
STUDENT LOAN MARKETING ASSOCIATION (3.4%)
1.47%, 10/07/03 * 5,000,000 5,001,796
3.20%, 10/24/03 4,000,000 4,005,387
------------
9,007,183
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT SPONSORED
ENTERPRISE & AGENCY DEBENTURES 48,313,841
- ------------------------------------------------------
U.S. TREASURY DEBENTURES (0.0%)
INTEREST ONLY STRIPPED SECURITIES
Federal National Mortgage
Association 0.00%,
11/19/03 92,000 91,850
- ------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGES (15.4%)
SMALL BUSINESS ADMINISTRATION *
Pool #501982
2.00%, 10/01/03 253,303 255,073
Pool #502001
2.00%, 10/01/03 767,591 767,591
Pool #502105
2.00%, 10/01/03 375,998 380,251
Pool #502139
2.00%, 10/01/03 209,383 209,383
Pool #502245
2.00%, 10/01/03 817,442 827,902
Pool #502268
2.00%, 10/01/03 415,932 415,932
Pool #502275
1.88%, 10/01/03 134,403 134,402
Pool #502401
1.75%, 10/01/03 105,458 105,826
Pool #504073
1.50%, 10/01/03 526,121 526,121
Pool #504081
1.50%, 10/01/03 249,463 249,463
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
14
PRIME MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
PRINCIPAL AMORTIZED
AMOUNT COST
- ------------------------------------------------------
Pool #504228
1.50%, 10/01/03 $ 407,125 $ 407,125
Pool #504409
1.50%, 10/01/03 279,899 279,757
Pool #504984
1.71%, 10/01/03 174,564 174,564
Pool #505128
1.75%, 10/01/03 2,067,881 2,067,312
Pool #505163
1.75%, 10/01/03 283,396 283,316
Pool #505236
1.65%, 10/01/03 2,451,670 2,448,156
Pool #505241
1.65%, 10/01/03 1,156,957 1,156,957
Pool #505303
1.55%, 10/01/03 732,012 731,564
Pool #505341
1.45%, 10/01/03 2,835,359 2,834,530
Pool #505344
1.45%, 10/01/03 1,568,513 1,567,868
Pool #505559
1.50%, 10/01/03 410,994 410,994
Pool #505716
1.38%, 10/01/03 8,985,191 8,967,229
Pool #505799
1.38%, 10/01/03 15,455,046 15,439,140
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES
40,640,456
- ------------------------------------------------------
REPURCHASE AGREEMENTS (32.0%)
Bank of America Corp.
1.03%, 10/01/03, dated
09/30/03, repurchase
price $40,001,144
(collateralized by U.S.
Treasury Bills and
Government National
Mortgage Association
securities) 40,000,000 40,000,000
Prudential, Inc. 1.07%,
10/01/03, dated
09/30/03, repurchase
price $44,297,317
(collateralized by
Government National
Mortgage Association
securities) 44,296,000 44,296,000
- ------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 84,296,000
- ------------------------------------------------------
</Table>
<Table>
<Caption>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT COST
- ------------------------------------------------------
INVESTMENT COMPANIES (4.5%)
BlackRock Provident
Institutional T-Fund 6,000,000 $ 6,000,000
Federated Prime Cash
Obligations Fund 6,000,000 6,000,000
- ------------------------------------------------------
TOTAL INVESTMENT COMPANIES 12,000,000
- ------------------------------------------------------
SAVINGS DEPOSITS (7.6%)
Comerica Bank Money Market
Savings $10,000,000 10,000,000
Fifth Third Bank Money
Market Savings 10,000,000 10,000,000
- ------------------------------------------------------
TOTAL SAVINGS DEPOSITS 20,000,000
- ------------------------------------------------------
TOTAL INVESTMENTS (AMORTIZED COST
$262,364,433) (a) -- 99.4% 262,364,433
- ------------------------------------------------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.6% 1,488,411
- ------------------------------------------------------
NET ASSETS -- 100.0% $263,852,844
- ------------------------------------------------------
</Table>
- ---------------
(a) Cost and value for financial reporting and federal income tax purposes are
the same.
(b) Rate disclosed represents effective yield at September 30, 2003.
(c) Rule 144A, Section 4(2) or other security which is restricted as to resale
to institutional investors. The Advisor, using board approved procedures,
has deemed these securities to be liquid.
* Denotes variable rate security. Rate presented represents rate in effect on
September 30, 2003. Maturity date reflects next rate change date.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
15
INVESTMENT GRADE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------
ASSET BACKED SECURITIES (4.3%)
Daimler Chrysler Auto Trust
3.53%, 12/06/07 $1,500,000 $ 1,547,805
GMAC Mortgage Corp. Loan
Trust
7.52%, 11/25/29 87,894 87,825
MMCA Automobile Trust
3.57%, 08/17/09 1,000,000 1,014,437
SSB Auto Loan Trust
2.89%, 02/15/09 2,000,000 2,042,446
WFS Financial Owner Trust
2.39%, 08/20/07 2,000,000 2,020,464
- ------------------------------------------------------
TOTAL ASSET BACKED SECURITIES 6,712,977
- ------------------------------------------------------
CORPORATE BONDS (27.0%)
AEROSPACE & MILITARY TECHNOLOGY (0.4%)
Loral Corp.
7.63%, 06/15/25 500,000 599,375
-----------
AUTOMOTIVE (0.3%)
General Motors Corp.
7.40%, 09/01/25 500,000 484,375
-----------
COMPUTERS (0.8%)
Dell Computer Corp.
7.10%, 04/15/28 108,000 127,575
IBM Corp.
4.88%, 10/01/06 1,000,000 1,076,911
-----------
1,204,486
-----------
CONSTRUCTION (0.3%)
Centex Corp.
4.75%, 01/15/08 125,000 130,000
Lennar Corp.
5.95%, 03/01/13 250,000 265,000
-----------
395,000
-----------
ELECTRIC UTILITY (3.1%)
Allete, Inc.
7.80%, 02/15/08 500,000 553,125
Constellation Energy Group, Inc.
7.00%, 04/01/12 500,000 571,250
Florida Power Corp.
4.80%, 03/01/13 500,000 502,425
PPL Electric Utilities
5.88%, 08/15/07 3,000,000 3,296,250
-----------
4,923,050
-----------
</Table>
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------
FINANCE & BANKING (10.1%)
Amvescap PLC
5.38%, 02/27/13 $ 500,000 $ 496,875
Bank of America Corp.
8.57%, 11/15/24 1,000,000 1,341,249
Block Financial Corp.
8.50%, 04/15/07 189,000 221,737
Boeing Capital Corp.
5.65%, 05/15/06 1,000,000 1,074,747
Burlington Resources Finance
Co.
6.40%, 08/15/11 500,000 568,125
Citigroup, Inc.
5.75%, 05/10/06 1,000,000 1,088,806
Donaldson, Lufkin &
Jenrette, Inc.
6.50%, 04/01/08 500,000 563,125
Financing Corp.
10.35%, 08/03/18 600,000 948,644
Fleet National Bank
5.75%, 01/15/09 500,000 553,265
Ford Motor Credit Corp.
7.75%, 03/15/05 500,000 532,100
General Electric Capital
Corp.
7.88%, 12/01/06 614,000 714,127
6.90%, 09/15/15 125,000 146,250
Goldman Sachs Group, Inc.
6.60%, 01/15/12 1,000,000 1,133,750
Household Finance Corp.
6.75%, 05/15/11 500,000 571,250
Inter-American Development
Bank
4.00%, 01/18/05 1,000,000 1,033,750
8.40%, 09/01/09 100,000 126,420
J.P. Morgan Chase & Co.
4.00%, 02/01/08 500,000 516,250
Manufacturers & Traders
Trust Co.
8.00%, 10/01/10 500,000 611,875
MBNA Corp.
5.38%, 01/15/08 500,000 538,329
Mellon Bank
7.63%, 09/15/07 100,000 117,625
Morgan Stanley
6.60%, 04/01/12 500,000 565,625
Regions Financial Corp.
7.75%, 09/15/24 495,000 614,157
SunAmerica, Inc.
8.13%, 04/28/23 75,000 95,630
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
16
INVESTMENT GRADE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------
Union Planters Corp.
6.25%, 11/01/03 $1,200,000 $ 1,204,721
Washington Mutual, Inc.
8.25%, 04/01/10 500,000 609,375
-----------
15,987,807
-----------
FOOD (2.8%)
Albertson's, Inc.
7.50%, 02/15/11 500,000 583,125
Archer Daniels Co.
6.63%, 05/01/29 1,000,000 1,121,249
ConAgra, Inc.
7.50%, 09/15/05 850,000 938,188
Kellogg Co.
6.60%, 04/01/11 500,000 571,947
McDonalds Corp.
4.13%, 06/01/13 500,000 483,750
PepsiAmericas, Inc.
4.50%, 03/15/13 500,000 493,125
Sara Lee Corp.
6.00%, 01/15/08 100,000 111,000
Wendy's International, Inc.
6.20%, 06/15/14 135,000 150,525
-----------
4,452,909
-----------
INSURANCE (0.4%)
Mony Group, Inc.
8.35%, 03/15/10 500,000 613,125
-----------
MULTIMEDIA (0.7%)
AOL Time Warner, Inc.
6.13%, 04/15/06 500,000 542,475
Walt Disney Co.
7.00%, 03/01/32 500,000 565,000
-----------
1,107,475
-----------
OIL & GAS (1.1%)
Ashland Oil, Inc.
9.20%, 04/24/06 500,000 570,000
Columbia Energy Group
6.80%, 11/28/05 500,000 545,968
USX Corp.
6.85%, 03/01/08 500,000 568,881
-----------
1,684,849
-----------
PHARMACEUTICALS (0.7%)
Merck & Company, Inc.
4.13%, 01/18/05 1,000,000 1,036,250
-----------
</Table>
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------
RESEARCH & DEVELOPMENT (0.2%)
Science Applications
International Corp.
6.25%, 07/01/12 $ 305,000 $ 337,788
-----------
RETAIL (3.3%)
AutoZone, Inc.
4.38%, 06/01/13 500,000 475,625
Limited Brands, Inc.
6.13%, 12/01/12 500,000 545,699
Lowe's Companies, Inc.
7.11%, 05/15/37 1,000,000 1,203,852
Sears, Roebuck and Co.
9.38%, 11/01/11 821,000 874,365
Staples, Inc.
7.13%, 08/15/07 411,000 456,210
Wal-Mart Stores, Inc.
8.00%, 09/15/06 1,500,000 1,749,375
-----------
5,305,126
-----------
TELECOMMUNICATIONS (1.5%)
Vodafone Americas Asia, Inc.
7.00%, 10/01/03 665,000 665,095
Bellsouth
Telecommunications, Inc.
7.00%, 10/01/25 500,000 575,625
GTE Hawaiian Telephone,
Series A
7.00%, 02/01/06 1,000,000 1,106,250
-----------
2,346,970
-----------
TRANSPORTATION (0.2%)
Norfolk Southern Corp.
8.13%, 11/15/03 250,000 252,121
-----------
TRAVEL & ENTERTAINMENT (1.1%)
Brunswick Corp.
7.38%, 09/01/23 1,000,000 1,101,020
Harrah's Operating Company,
Inc.
8.00%, 02/01/11 500,000 593,125
-----------
1,694,145
- ------------------------------------------------------
TOTAL CORPORATE BONDS 42,424,851
- ------------------------------------------------------
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
17
INVESTMENT GRADE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------
FOREIGN BONDS (1.0%)
FOREIGN GOVERNMENT
Canadian Global Bond
6.38%, 07/21/05 $1,000,000 $ 1,087,500
State of Israel
6.38%, 12/15/05 495,000 512,325
- ------------------------------------------------------
TOTAL FOREIGN BONDS 1,599,825
- ------------------------------------------------------
MORTGAGE BACKED SECURITIES (32.3%)
FEDERAL HOME LOAN MORTGAGE CORPORATION (8.7%)
Pool #C00544
6.50%, 06/01/27 64,518 67,502
Pool #C00835
6.50%, 07/01/29 398,113 416,151
Pool #C00896
7.50%, 12/01/29 550,451 589,154
Pool #C01244
6.50%, 10/01/31 1,556,524 1,625,587
Pool #C16249
6.50%, 10/01/28 2,444,668 2,556,194
Pool #D77827
6.50%, 02/01/27 90,660 94,853
Pool #D81274
6.50%, 07/01/27 3,185 3,332
Pool #D83661
6.50%, 11/01/27 123,822 129,549
Pool #D83833
6.50%, 11/01/27 162,260 169,765
Pool #D83835
6.50%, 11/01/27 76,471 80,008
Pool #D83900
6.50%, 11/01/27 60,096 62,876
Pool #D83967
6.50%, 11/01/27 11,537 12,071
Pool #D83991
6.50%, 11/01/27 114,132 119,410
Pool #D84075
6.50%, 11/01/27 31,615 33,077
Pool #E01071
5.50%, 11/01/16 499,372 517,005
Pool #E77808
6.00%, 07/01/14 1,244,203 1,297,853
Pool #E81217
7.00%, 09/01/15 110,827 117,718
Pool #G01035
6.00%, 05/01/29 1,955,153 2,024,189
</Table>
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------
Pool #G01477
6.00%, 12/01/32 $2,608,527 $ 2,695,730
Pool #M90724
5.50%, 05/01/07 970,919 1,000,047
-----------
13,612,071
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (14.1%)
Pool #250551
7.00%, 05/01/26 817,683 868,020
Pool #251140
7.00%, 08/01/27 54,849 58,191
Pool #303585
7.00%, 10/01/25 68,182 72,379
Pool #313275
7.50%, 04/01/26 1,005,434 1,078,328
Pool #313644
7.00%, 08/01/27 20,354 21,594
Pool #323405
7.50%, 10/01/28 972,095 1,042,572
Pool #344263
7.00%, 05/01/26 34,440 36,560
Pool #346330
7.00%, 05/01/26 323,134 343,026
Pool #369427
7.00%, 01/01/27 24,846 26,376
Pool #381100
5.77%, 01/01/09 936,134 1,022,726
Pool #394444
7.00%, 07/01/27 145,940 154,832
Pool #396535
7.00%, 11/01/27 73,582 78,065
Pool #532574
8.00%, 06/01/15 378,374 405,567
Pool #534157
7.50%, 04/01/30 2,559 2,732
Pool #535469
6.50%, 07/01/30 453,408 473,245
Pool #545691
6.50%, 06/01/32 1,864,103 1,943,905
Pool #547005
7.50%, 07/01/30 2,624 2,801
Pool #550792
7.50%, 10/01/30 13,391 14,295
Pool #552555
7.50%, 09/01/30 2,142 2,287
Pool #556077
7.50%, 11/01/30 86,073 91,883
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
18
INVESTMENT GRADE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------
Pool #556340
6.00%, 07/01/13 $ 819,435 $ 857,588
Pool #561744
8.50%, 12/01/30 1,342,031 1,447,715
Pool #569582
6.50%, 04/01/31 519,350 541,583
Pool #610107
6.50%, 10/01/31 455,101 474,583
Pool #671779
5.50%, 12/01/32 3,711,547 3,790,013
Pool #683235
5.25%, 05/01/12* 3,375,853 3,465,785
Pool #694370
5.00%, 03/01/33 3,968,369 3,972,060
-----------
22,288,711
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (9.5%)
Series I, Pool #354602
7.00%, 06/15/23 199,957 214,204
Series I, Pool #437447
7.00%, 11/15/12 318,592 340,393
Series I, Pool #458347
7.00%, 11/15/12 95,429 101,960
Series I, Pool #609383
5.50%, 04/15/33 5,000,000 5,131,250
Series I, Pool #780204
7.00%, 07/15/25 458,437 490,239
Series I, Pool #780717
7.00%, 02/15/28 575,441 613,201
Series II, Pool #2118
7.50%, 11/20/25 22,331 23,838
Series II, Pool #2271
8.50%, 08/20/26 46,079 49,967
Series II, Pool #2473
7.50%, 08/20/27 167,175 177,832
Series II, Pool #2474
8.00%, 08/20/27 206,344 221,754
Series II, Pool #2498
7.50%, 10/20/27 114,331 121,620
Series II, Pool #2516
6.50%, 11/20/12 280,060 296,774
Series II, Pool #2562
6.00%, 03/20/28 38,254 39,750
Series II, Pool #2576
6.00%, 04/20/28 1,787,385 1,857,200
</Table>
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------
Series II, Pool #2657
6.00%, 10/20/28 $ 313,551 $ 325,809
Series II, Pool #2671
6.00%, 11/20/28 673,715 700,030
Series II, Pool #2687
6.00%, 12/20/28 336,284 349,419
Series II, Pool #3414
5.00%, 07/20/33 3,978,551 3,983,524
-----------
15,038,764
- ------------------------------------------------------
TOTAL MORTGAGE BACKED SECURITIES 50,939,546
- ------------------------------------------------------
U.S. GOVERNMENT SPONSORED ENTERPRISE &
AGENCY DEBENTURES (22.0%)
FEDERAL FARM CREDIT BANK (2.3%)
9.20%, 08/22/05 100,000 114,214
6.30%, 12/03/13 3,000,000 3,480,000
-----------
3,594,214
-----------
FEDERAL HOME LOAN BANK (4.7%)
6.05%, 03/29/04* 750,000 790,313
5.88%, 02/23/06 1,110,000 1,214,751
2.25%, 05/15/06 2,000,000 2,012,370
5.66%, 12/18/08 1,150,000 1,160,960
5.75%, 05/15/12 2,000,000 2,211,169
-----------
7,389,563
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION (3.5%)
3.50%, 09/15/07 2,000,000 2,059,080
5.75%, 04/15/08 1,000,000 1,117,023
6.63%, 09/15/09 1,000,000 1,166,250
6.88%, 09/15/10 1,000,000 1,185,518
-----------
5,527,871
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (8.0%)
6.60%, 07/16/07 2,000,000 2,089,400
5.25%, 01/15/09 1,000,000 1,095,900
6.38%, 06/15/09 2,000,000 2,305,940
6.63%, 09/15/09 4,000,000 4,664,427
7.13%, 01/15/30 2,000,000 2,464,240
-----------
12,619,907
-----------
STUDENT LOAN MARKETING ASSOCIATION (0.4%)
8.44%, 12/01/16 450,000 623,178
-----------
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
19
INVESTMENT GRADE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------
TENNESSEE VALLEY AUTHORITY (1.6%)
Tennessee Valley Authority
5.98%, 04/01/36 $1,650,000 $ 1,843,875
Tennessee Valley Authority
Global
6.75%, 11/01/25 500,000 596,875
-----------
2,440,750
-----------
U.S. GOVERNMENT GUARANTEED SECURITY (1.5%)
El Salvador Aid
6.30%, 11/01/05 1,953,811 2,111,242
Guaranteed Export Trust,
Series 96-A
6.55%, 06/15/04 211,751 216,198
-----------
2,327,440
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT SPONSORED
ENTERPRISE & AGENCY DEBENTURES 34,522,923
- ------------------------------------------------------
</Table>
<Table>
U.S. TREASURY DEBENTURES (11.4%)
INTEREST ONLY STRIPPED SECURITIES (0.0%)
U.S. Treasury, 0.00%,
02/15/19 100,000 45,765
------------
U.S. TREASURY BONDS (4.2%)
12.00%, 05/15/05 160,000 187,731
8.88%, 02/15/19 500,000 733,770
8.75%, 05/15/20 2,000,000 2,933,282
6.25%, 08/15/23 1,000,000 1,169,330
5.38%, 02/15/31 1,500,000 1,610,145
------------
6,634,258
------------
</Table>
<Table>
<Caption>
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------
U.S. TREASURY NOTES (7.2%)
3.00%, 11/15/07 $3,000,000 $ 3,062,670
5.75%, 08/15/10 3,000,000 3,435,588
5.00%, 08/15/11 530,000 579,894
4.25%, 08/15/13 4,000,000 4,100,000
------------
11,178,152
- ------------------------------------------------------
TOTAL U.S. TREASURY DEBENTURES 17,858,175
- ------------------------------------------------------
INVESTMENT COMPANY (1.7%)
Eureka Prime Money Market
Fund-Trust Class 2,707,923 2,707,923
- ------------------------------------------------------
TOTAL INVESTMENTS (COST $150,279,710)
(a) -- 99.7% 156,766,220
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.3% 506,961
- ------------------------------------------------------
NET ASSETS -- 100.0% $157,273,181
- ------------------------------------------------------
</Table>
- ---------------
(a) Represents cost for financial reporting purposes, and is substantially the
same as cost for federal income tax purposes, and differs from value basis
by unrealized appreciation/depreciation of securities as follows:
<Table>
Unrealized appreciation.... $6,825,710
Unrealized depreciation.... (339,200)
----------
Net unrealized
appreciation............. $6,486,510
==========
</Table>
* Denotes variable rate security. Rate presented represents rate in effect on
September 30, 2003. Maturity date reflects next rate change date.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
20
GLOBAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
COMMON STOCK (78.0%)
ADVERTISING & MARKETING (0.1%)
Publicis Groupe 300 $ 8,238
WPP Group PLC 2,800 23,609
-----------
31,847
-----------
AEROSPACE & MILITARY TECHNOLOGY (0.5%)
British Aerospace PLC 8,917 24,889
European Aeronautic Defence
and Space Co. 700 10,793
General Dynamics Corp. 1,900 148,314
-----------
183,996
-----------
AIRPORTS (0.1%)
BAA PLC 2,800 21,585
-----------
AUTOMOTIVE (1.6%)
Bridgestone Corp. 2,000 26,765
Continental AG 400 11,543
DaimlerChrysler AG 1,674 58,484
Denso Corp. 1,200 23,739
Fiat SPA * 1,100 8,698
Harley-Davidson, Inc. 200 9,640
Honda Motor Company, Ltd. 1,500 60,019
Magna International, Inc.,
Class A 200 14,450
Michelin (CGDE), Class B 400 14,874
Nissan Motors 5,800 62,561
PACCAR, Inc. 1,000 74,690
PSA Peugeot Citroen 420 17,848
Renault SA 370 21,889
Toyota Motor Corp. 5,300 155,609
Volkswagen AG 600 26,796
Volvo AB, Class A 400 8,713
Volvo AB, Class B 500 11,570
-----------
607,888
-----------
BEVERAGES & TOBACCO (2.6%)
Altadis SA 900 22,167
Altria Group, Inc. 2,800 122,640
Anheuser Busch Companies,
Inc. 800 39,472
Asahi Breweries, Ltd. 2,000 14,752
British American Tobacco
PLC 3,474 37,314
Cadbury Schweppes PLC 6,306 38,764
Coca Cola Amatil, Ltd. 2,900 11,228
Coca-Cola Co. 5,200 223,393
Coca-Cola Enterprises,
Inc. 2,200 41,932
Diageo PLC 6,852 73,939
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Heineken NV 500 $ 18,161
Imperial Tobacco Group PLC 1,000 16,298
Interbrew 300 7,469
Ito En, Ltd. 100 4,091
Kirin Brewery Company,
Ltd. 3,000 22,960
LVMH (Louis Vuitton Moet
Hennessy) 320 19,881
Pepsi Bottling Group, Inc. 2,100 43,218
PepsiCo, Inc. 4,100 187,903
Pernod-Ricard SA 235 22,249
SABMiller PLC 2,000 15,650
Scottish & Newcastle PLC 1,400 8,193
-----------
991,674
-----------
CHEMICALS (1.1%)
Akzo Nobel 580 18,082
Asahi Kasei Corp. 4,000 15,074
Ciba Specialty Chemicals AG 200 13,562
E. I. du Pont de Nemours
and Co. 1,900 76,019
Eastman Chemical Co. 1,900 63,650
Henkel KGaA, Vorzug 150 10,175
Hercules, Inc. * 1,300 14,729
Imperial Chemical
Industries PLC 3,700 10,189
International Flavors &
Fragrances, Inc. 400 13,232
L'Air Liquide 196 27,687
Lonza Group AG 214 10,031
Mitsubishi Chemical Corp. 7,000 15,226
Mitsui Chemicals, Inc. 2,000 11,547
NOVA Chemicals Corp. 300 6,136
Potash Corp. of
Saskatchewan 200 14,179
Shin-Etsu Chemical Co. 700 26,317
Solvay SA 110 7,846
Syngenta AG, Registered 295 15,994
Takeda Chemical Industries 1,500 54,648
-----------
424,323
-----------
COMPUTERS (6.5%)
ATI Technologies, Inc. * 600 8,955
Business Objects SA * 200 5,068
Cap Gemini SA * 220 9,121
Cisco Systems, Inc. * 13,900 271,606
Dassault Systemes SA 100 3,505
Dell, Inc. * 4,500 150,255
EMC Corp. * 2,200 27,786
Fujitsu, Ltd. 5,000 26,138
Gateway, Inc. * 4,300 24,338
Hewlett-Packard Co. 300 5,808
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
21
GLOBAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
IBM Corp. 4,500 $ 397,485
Intel Corp. 12,600 346,626
Intuit, Inc. * 1,400 67,536
Meitec Corp. 200 7,340
Microsoft Corp. 26,400 733,657
Misys PLC 2,100 9,856
NTT Data Corp. 2 8,396
Oracle Corp. * 16,200 181,764
PeopleSoft, Inc. * 700 12,733
SAP AG 370 45,243
Seagate Technology, Inc.
Escrow Shares * 1,700 0
Texas Instruments, Inc. 8,400 191,520
TietoEnator Oyj 300 6,061
-----------
2,540,797
-----------
CONSTRUCTION (0.5%)
Actividades de Construccion
y Servicios SA 400 16,942
Berkeley Group PLC 500 6,525
Bouygues SA 400 10,532
Compagnie de Saint-Gobain 680 24,999
Compagnie Francaise
d'Etudes et de
Construction SA (Technip) 60 5,876
Daiwa House Industry
Company, Ltd. 2,000 18,243
Fomento de Construcciones y
Contratas SA 300 9,262
Grupo Dragados SA 400 8,189
Hanson PLC 2,500 15,835
Imerys 20 3,692
Italcementi SPA 600 6,896
Obayashi Corp. 3,000 12,219
Rinker Group, Ltd. 3,300 12,933
Sekisui House, Ltd. 1,000 9,041
Skanska AB, Class B 1,800 11,449
Vinci SA 240 17,287
-----------
189,920
-----------
CONSUMER GOODS & SERVICES (4.0%)
Adidas-Salomon AG 100 8,676
Beiersdorf AG 20 2,539
Black & Decker Corp. 1,200 48,660
Clorox Co. 600 27,522
Electrolux AB, Class B 600 13,070
Essilor International SA 400 17,301
Gillette Co. 9,400 300,612
Givaudan SA, Registered 20 8,466
KAO Corp. 1,000 21,125
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
L'Oreal SA 490 $ 33,467
Luxottica Group SPA 1,100 15,667
Matsushita Electric
Industrial Co. 5,576 67,133
Mattel, Inc. 10,800 204,768
Maytag Corp. 1,900 47,443
Nintendo Company, Ltd. 100 8,378
Procter & Gamble Co. 5,200 482,663
Reckitt Benckiser PLC 700 14,072
Secom Company, Ltd. 500 18,798
Securitas AB, Class B 900 10,937
Shiseido Company, Ltd. 1,000 11,404
Societe BIC SA 300 12,787
Sony Corp. 1,600 55,856
Uni-Charm Corp. 100 4,726
Unilever NV -- CVA 1,083 63,691
Unilever PLC 7,235 61,784
-----------
1,561,545
-----------
CONTAINERS (0.8%)
Amcor, Ltd. 1,600 9,422
Ball Corp. 3,200 172,800
Bemis Company, Inc. 2,400 106,320
Rexam PLC 1,300 8,574
-----------
297,116
-----------
DIVERSIFIED (2.5%)
3M Co. 1,400 96,698
BASF AG 1,145 49,816
Bayer AG 1,900 40,934
Bombardier, Inc., Class B 3,300 13,866
Brambles Industries PLC 3,300 9,307
Brambles Industries, Ltd. 5,008 15,898
Broken Hill Proprietary
Company, Ltd. 11,762 84,069
Bunzl PLC 1,400 10,606
Compagnie Financiere
Richemont AG, Class A 1,400 27,828
General Electric Co. 12,300 366,663
Groupe Bruxelles Lambert SA 250 11,980
Hutchison Whampoa 4,400 32,103
Mitsubishi Corp. 3,000 25,699
Mitsui & Company, Ltd. 4,000 27,105
Power Corp. of Canada 600 18,723
Preussag AG 500 8,303
Reed International PLC 3,100 24,245
Rentokil Initial PLC 6,258 22,172
Smiths Industries PLC 900 10,003
Sumitomo Corp. 3,000 17,885
Swire Pacific, Ltd., Class
A 3,500 20,655
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
22
GLOBAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Wesfarmers, Ltd. 600 $ 11,014
Wharf Holdings, Ltd. 5,700 14,869
-----------
960,441
-----------
E-COMMERCE (0.5%)
Amazon.com, Inc. * 2,500 120,900
InterActiveCorp * 1,400 46,270
VeriSign, Inc. * 1,800 24,246
-----------
191,416
-----------
ELECTRICAL & ELECTRONIC (1.7%)
Advantest Corp. 100 6,633
Alps Electric Company,
Ltd. 1,000 16,220
Applied Micro Circuits
Corp. * 300 1,461
ASML Holding NV * 1,200 15,721
Casio Computer Company,
Ltd. 1,000 7,644
Electrocomponents PLC 1,300 6,944
Fanuc, Ltd. 200 12,120
Hirose Electric Company,
Ltd. 60 6,150
Hitachi, Ltd. 8,000 44,399
Infineon Technologies AG * 900 11,718
Johnson Electric Holdings,
Ltd. 8,000 12,294
Keyence Corp. 80 16,986
Kyocera Corp. 300 17,724
Mitsubishi Electric Corp. 6,000 25,082
Murata Manufacturing
Company, Ltd. 400 20,624
NEC Corp. 4,000 30,077
Nitto Denko Corp. 400 17,294
Omron Corp. 900 18,449
Philips Electronics NV 2,482 56,247
Pioneer Corp. 400 9,900
Rohm Company, Ltd. 100 12,979
Sagem SA 10 937
Sanyo Electric Company,
Ltd. 5,000 20,901
Sharp Corp. 3,000 43,906
Siemens AG 1,497 88,910
STMicroelectronics NV 1,200 28,997
Sumitomo Electric
Industries, Ltd. 2,000 16,650
Taiyo Yuden Company, Ltd. 1,000 12,586
TDK Corp. 200 11,869
Tokyo Electron, Ltd. 300 19,926
Toshiba Corp. 8,000 33,657
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Venture Manufacturing
(Singapore), Ltd. 1,000 $ 11,570
Yokogawa Electric Corp. 1,000 9,578
-----------
666,153
-----------
FINANCE & BANKING (14.3%)
3i Group PLC 900 8,901
77 Bank, Ltd. 10,000 54,066
ABN Amro Holding NV 3,548 65,489
Acom Company, Ltd. 90 4,036
Aiful Corp. 50 3,017
Allied Irish Bank PLC 2,500 36,829
AmSouth Bancorp 1,400 29,708
Amvescap PLC 1,600 12,108
Australia & New Zealand
Banking Group, Ltd. 3,900 47,383
Banca Fideuram SPA 1,600 9,316
Banca Intesa SPA 13,017 39,413
Banche Popolari Unite Scrl
* 2,000 29,114
Banco Bilbao Vizcaya 7,831 80,800
Banco Comercial Portugues
SA, Registered 4,900 10,214
Banco Espirito Santo SA,
Registered 900 13,101
Banco Popolare di Verona e
Novara Scrl * 1,400 19,695
Banco Santander Central
Hispano SA 11,140 94,444
Bank of America Corp. 1,936 151,085
Bank of East Asia 7,600 19,530
Bank of Ireland 2,400 28,676
Bank of Montreal 1,200 41,519
Bank of Nova Scotia 1,100 51,436
Bank of Yokohama, Ltd. 4,000 15,253
Bank One Corp. 4,500 173,925
Barclays PLC 14,100 108,168
Bayerische Hypo-und
Vereinsbank AG 973 16,543
Bear Stearns Companies,
Inc. 2,500 187,000
BNP Paribas SA (b) 800 39,222
Canadian Imperial Bank of
Commerce 700 28,691
Charles Schwab Corp. 10,000 119,100
Citigroup, Inc. 6,800 309,469
Close Brothers Group PLC 200 2,376
Commonwealth Bank of
Australia 1,200 22,498
Countrywide Credit
Industries, Inc. 4,600 360,089
Credit Saison Company,
Ltd. 500 10,428
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
23
GLOBAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Credit Suisse Group 2,400 $ 76,783
Daiwa Securities Group,
Inc. 3,000 20,275
Danske Bank A/S 1,300 24,772
DBS Group Holdings, Ltd. 3,198 23,866
Deutsche Bank AG 930 56,426
Dexia 1,300 18,954
Dexia-Strip VVPR * 2,560 30
Federated Investors, Inc.,
Class B 5,900 163,430
Fifth Third Bancorp 1,400 77,378
Fortis 2,420 41,174
Freddie Mac 3,500 183,225
Golden West Financial
Corp. 1,200 107,412
H&R Block, Inc. 3,000 129,450
Hang Seng Bank, Ltd. 1,200 14,721
HBOS PLC 6,375 72,869
HSBC Holdings PLC 16,900 222,797
ING Groep NV 3,508 64,261
Irish Life & Permanent PLC 700 9,187
Jafco Company, Ltd. 100 7,850
Janus Capital Group, Inc. 10,200 142,494
KBC Bancassurance Holding 300 11,424
Lehman Brothers Holdings,
Inc. 600 41,448
Lend Lease Corporation,
Ltd. 2,700 18,823
Lloyds TSB Group PLC 14,176 97,446
Man Group PLC 100 2,166
Mediobanca SPA 1,100 10,645
Mellon Financial Corp. 600 18,084
Mitsubishi Tokyo Financial
Group, Inc. (MTFG) 5 31,554
Mizuho Financial Group,
Inc. 9 20,141
National Australia Bank,
Ltd. 1,100 22,932
National Bank of Canada 800 21,597
National Bank of Greece SA 1,500 30,430
National City Corp. 1,500 44,190
Nikko Securities Company,
Ltd. 2,000 10,634
Nomura Securities Company,
Ltd. 5,000 80,562
Nordea AB 6,000 34,206
Orix Corp. 100 7,815
Oversea-Chinese Banking
Corporation, Ltd. 3,000 19,438
Power Financial Corp. 400 13,072
Promise Company, Ltd. 150 6,579
Provident Financial PLC 900 9,644
Royal Bank of Canada 1,500 66,082
Royal Bank of Scotland
Group PLC 4,000 101,678
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
San Paolo-IMI SPA 3,335 $ 33,245
Shizuoka Bank 2,000 14,447
Skandiaviska Enskilda
Banken 1,500 16,386
Societe Generale, Class A 560 37,303
Softbank Corp. 500 21,125
State Street Corp. 3,100 139,500
Sumitomo Mitsui Financial
Group, Inc. 6 24,169
Sumitomo Trust & Banking 4,000 19,478
Sun Life Financial Services
of Canada, Inc. 1,500 32,513
Suncorp-Metway, Ltd. 1,400 11,305
Svenska Handelsbanken,
Class A 900 15,300
Svenska Handelsbanken,
Class B 600 9,851
Takefuji Corp. 140 8,960
U.S. Bancorp 6,300 151,137
UBS AG, Registered 2,238 125,576
UFJ Holdings, Inc. 7 27,508
Unicredito Italiano SPA 10,300 48,699
United Overseas Bank, Ltd. 4,256 32,993
Wachovia Corp. 1,000 41,190
Washington Mutual, Inc. 800 31,496
Wells Fargo & Co. 4,600 236,901
Westfield Holdings, Ltd. 2,000 19,223
Westpac Banking Corp. 6,600 72,369
-----------
5,591,260
-----------
FOOD (1.8%)
Ajinomoto Company, Inc. 2,000 20,570
Autogrill SPA 1,300 16,123
Carrefour SA 1,080 54,333
Compass Group PLC 6,437 37,110
Darden Restaurants, Inc. 1,500 28,500
Etablissements Economiques
du Casino Guichard-
Perrachon SA 90 7,981
Groupe Danone 230 35,088
Jeronimo Martins SGPS SA * 1,200 9,447
Katokichi Company, Ltd. 600 9,979
Kellogg Co. 200 6,670
Kerry Group PLC, Class A 1,000 16,886
Koninklijke Ahold NV 1,600 15,260
Loblaw Companies, Ltd. 200 8,930
Mitchells & Butlers PLC * 2,452 9,349
Nestle SA, Registered 725 167,169
Nissin Food Products
Company, Ltd. 700 16,605
Orkla ASA, Class A 600 11,777
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
24
GLOBAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Safeway PLC 2,500 $ 11,526
Sainsbury (J) PLC 4,344 19,576
Sara Lee Corp. 5,600 102,817
Sodexho Alliance SA 200 5,445
Tesco PLC 18,648 74,666
Whitbread PLC 900 10,414
-----------
696,221
-----------
HEALTH CARE (3.2%)
Amersham PLC 1,900 16,352
Amgen, Inc. * 1,200 77,484
Baxter International, Inc. 1,200 34,872
Becton, Dickinson and Co. 1,100 39,732
Biomet, Inc. 800 26,888
Fresenius Medical Care AG 170 9,780
HCA, Inc. 1,700 62,662
Johnson & Johnson 7,904 391,406
McKesson, Inc. 2,800 93,212
Smith & Nephew PLC 2,400 15,790
Synthes-Stratec, Inc. 2 1,772
Tenet Healthcare Corp. * 5,000 72,400
Terumo Corp. 800 15,432
UnitedHealth Group, Inc. 3,000 150,960
William Demant Holding A/S
* 300 8,798
Zimmer Holdings, Inc. * 4,100 225,910
-----------
1,243,450
-----------
INSURANCE (3.9%)
Aegon NV 3,491 40,614
Aetna, Inc. 600 36,618
AFLAC, Inc. 700 22,610
Alleanza Assicurazioni SPA
* 1,300 12,520
Allianz AG, Registered 395 34,592
Allstate Corp. 4,800 175,344
AMP, Ltd. 3,700 16,679
Assicurazioni Generali 1,770 39,947
Axa 3,600 60,664
CGU PLC 5,124 39,756
Cigna Corp. 1,000 44,650
Corporacion Mapfre SA 1,000 10,912
Fairfax Financial Holdings,
Ltd. 20 3,120
Great-West Lifeco, Inc. 174 5,216
Hartford Financial Services
Group, Inc. 7,200 378,935
Legal & General Group PLC 17,000 26,055
Manulife Financial Corp. 1,100 31,815
Marsh & McLennan Companies,
Inc. 400 19,044
Millea Holdings, Inc. 1 11,279
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Mitsui Sumitomo Insurance
Company, Ltd. 4,000 $ 29,074
Muenchener Rueckver AG,
Registered 140 13,904
Prudential PLC 5,300 36,168
QBE Insurance Group, Ltd. 1,500 10,112
RAS SPA 1,200 18,307
Royal & Sun Alliance
Insurance Group PLC 4,545 6,097
SAFECO Corp. 9,000 317,339
Sampo Oyj, A Shares 1,200 9,712
Skandia Forsakrings AB 3,400 10,725
Sompo Japan Insurance,
Inc. 1,000 7,233
Swiss Re, Registered 430 27,319
Zurich Financial Services
AG 211 26,363
-----------
1,522,723
-----------
MANUFACTURING (3.0%)
Abitibi-Consolidated, Inc. 1,384 9,723
Arcelor 900 10,942
Asahi Glass Company, Ltd. 2,000 13,767
Assa Abloy AB, Class B 1,000 8,791
Atlas Copco AB, Class A 300 8,804
Avery Dennison Corp. 1,800 90,936
Boehler-Uddeholm AG 380 20,356
BPB PLC 1,400 7,420
Canon, Inc. 1,000 48,874
CRH PLC 1,200 21,409
Daikin Industries, Ltd. 1,000 20,006
Deere & Co. 4,000 213,239
Eaton Corp. 1,100 97,481
Fuji Photo Film Co. 1,000 29,360
GKN PLC 3,300 13,172
Holcim, Ltd., Registered 375 15,107
Hoya Corp. 100 7,743
JFE Holdings, Inc. 1,250 27,302
Komatsu, Ltd. 2,000 10,419
Komori Corp. 1,000 11,297
Konica Minolta Holdings,
Inc. 1,000 13,230
Kubota Corp. 4,000 13,785
LaFarge 250 16,202
Linde AG 300 12,298
MAN AG 300 6,393
Mitsubishi Heavy
Industries, Ltd. 9,000 26,102
Nidec Corp. 100 8,298
Nikon Corp. 1,000 13,875
Norske Skogsindustrier ASA 700 11,558
Olympus Optical Company,
Ltd. 1,000 23,811
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
25
GLOBAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Orica, Ltd. 2,800 $ 22,742
Pechiney SA, Class A 260 14,307
Ricoh Company, Ltd. 2,000 35,626
RMC Group PLC 1,000 9,902
Sandvik AB 550 15,074
Sapa AB 500 11,247
Schindler Holding AG 10 2,143
Schneider Electric SA 300 15,547
Sembcorp Industries, Ltd. 18,209 13,273
Shimano, Inc. 600 11,332
SKF AB, B Shares 200 6,309
Sulzer AG, Registered 20 3,809
Svenska Cellulosa AB, Class
B 300 10,859
ThyssenKrupp AG 1,250 16,726
Titan Cement Co. SA 300 10,635
Tostem Corp. 1,000 17,831
Toyo Seikan Kaisha, Ltd. 1,000 11,118
Toyoda Automatic Loom
Works, Ltd. 800 15,038
UPM-Kymmene Oyj 1,200 20,109
Ushio, Inc. 1,000 14,609
Valeo SA 200 7,302
Veba AG 850 41,475
-----------
1,158,713
-----------
METALS & MINING (0.5%)
Alcan, Inc. 700 27,181
Barrick Gold Corp. 1,400 26,383
BHP Billiton PLC 6,066 40,262
Inco, Ltd. * 500 13,887
Noranda, Inc. 1,300 13,391
Placer Dome, Inc. 900 12,378
Rio Tinto PLC, Registered 1,016 21,657
Rio Tinto, Ltd. 200 4,450
WMC Resources, Ltd. * 4,200 12,565
WMC, Ltd. 4,200 14,498
-----------
186,652
-----------
MULTIMEDIA (2.0%)
British Sky Broadcasting
PLC * 2,300 23,481
Granada PLC 8,037 12,485
Lagardere S.C.A. 200 9,060
McGraw-Hill Companies,
Inc. 3,200 198,817
Mediaset SPA 2,100 19,222
Meredith Corp. 3,300 152,361
News Corporation, Ltd. 3,200 26,034
Pearson PLC 963 9,124
Publishing & Broadcasting 3,100 23,206
Reuters Group PLC 4,055 14,299
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Shaw Communications, Inc.,
Class B 600 $ 7,314
Societe Television
Francaise 1 300 8,884
Thomson 500 8,711
Toho Company, Ltd. 1,200 14,609
Toppan Printing Company,
Ltd. 2,000 16,488
Viacom, Inc., Class B 4,900 187,671
Vivendi Universal SA * 2,301 40,730
Yamaha Corp. 500 9,466
-----------
781,962
-----------
OIL & GAS (6.2%)
Anadarko Petroleum Corp. 800 33,408
Australian Gas Light
Company, Ltd. 1,800 12,939
BG Group PLC 9,765 41,046
BJ Services Co. * 2,100 71,757
BP Amoco PLC 46,852 321,479
Canadian Natural Resources,
Ltd. 200 8,239
Devon Energy Corp. 3,000 144,570
ENI SPA 5,700 87,090
Exxon Mobil Corp. 23,584 863,173
Hong Kong & China Gas 18,210 24,456
IHC Caland NV 170 8,750
Imperial Oil, Ltd. 400 15,058
Nabors Industries, Ltd. * 200 7,452
Nexen, Inc. 200 5,447
Nippon Oil Corp. 3,000 13,212
Osaka Gas Company, Ltd. 6,000 16,381
PanCanadian Energy Corp. 1,156 41,890
Petro-Canada 500 19,449
Precision Drilling Corp. * 100 3,782
Royal Dutch Petroleum 3,417 150,058
Santos, Ltd. 2,700 10,453
Shell Transportation &
Trading Co. PLC 22,973 141,792
Suncor Energy, Inc. 1,200 22,169
Talisman Energy, Inc. 200 9,500
Tokyo Gas Company, Ltd. 9,000 29,889
TonenGeneral Sekiyu K.K. 1,000 7,573
Total SA, Class B 1,157 174,621
Total SA-Strip VVPR * 180 2
Unocal Corp. 3,100 97,712
Woodside Petroleum, Ltd. 2,300 20,861
-----------
2,404,208
-----------
PAPER PRODUCTS (0.0%)
Oji Paper Company, Ltd. 3,000 16,730
-----------
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
26
GLOBAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
PHARMACEUTICALS (6.0%)
Abbott Laboratories 3,800 $ 161,690
Altana AG * 180 11,403
Astrazeneca Group PLC 2,750 116,140
Aventis SA 1,255 65,110
Biovail Corp. * 300 11,171
Bristol-Myers Squibb Co. 1,600 41,056
Cardinal Health, Inc. 1,150 67,149
Chugai Pharmaceutical
Company, Ltd. 700 8,728
CSL, Ltd. 800 8,691
Daiichi Pharmaceutical
Company, Ltd. 1,000 16,202
Eisai Company, Ltd. 600 14,018
Eli Lilly and Co. 1,100 65,340
Fujisawa Pharmaceutical
Company, Ltd. 800 18,189
Genentech, Inc. * 1,200 96,168
Gilead Sciences, Inc. * 300 16,779
GlaxoSmithKline PLC 9,918 205,807
MedImmune, Inc. * 1,300 42,913
Merck & Company, Inc. 12,500 632,751
Novartis AG, Registered 4,960 191,925
Novo Nordisk A/S, Class B 580 21,376
Pfizer, Inc. 3,850 116,963
Roche Holding AG, Bearer 10 1,231
Roche Holding AG,
Genusschein 1,320 109,450
Sankyo Company, Ltd. 1,100 16,040
Sanofi Synthelabo SA 720 43,768
Schering AG 400 17,329
Serono SA, Class B 10 6,542
Shionogi & Company, Ltd. 1,000 17,366
Taisho Pharmacuetical
Company, Ltd. 1,000 15,728
UCB SA 300 8,856
Wyeth 3,100 142,910
Yamanouchi Pharmaceutical
Company, Ltd. 700 19,299
-----------
2,328,088
-----------
PRINTING & PUBLISHING (0.4%)
Daily Mail and General
Trust NV, Class A 100 889
Dow Jones & Company, Inc. 700 33,145
Elsevier NV 1,800 20,333
Singapore Press Holdings 648 6,860
Stora Enso Oyj, Registered
Shares 1,900 23,520
Thomson Corp. 600 18,190
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Tribune Co. 400 $ 18,360
VNU NV 400 11,725
Wolters Kluwer 880 12,626
-----------
145,648
-----------
REAL ESTATE (0.6%)
British Land Co. PLC 1,200 9,839
Canary Wharf Group PLC * 3,300 14,803
Cheung Kong Holdings, Ltd. 4,000 31,638
Henderson Land Development
Company, Ltd. 3,000 12,591
Land Securities Group PLC 675 9,448
Metrovacesa SA 258 7,058
MI Developements, Inc.,
Class A * 100 2,297
Mitsubishi Estate Company,
Ltd. 3,000 28,331
Mitsui Fudosan Company,
Ltd. 2,000 17,724
Simon Property Group, Inc. 1,000 43,579
Sun Hung Kai Properties 3,000 24,310
Union du Credit-Bail
Immobilier (Unibail) 370 29,085
-----------
230,703
-----------
RETAIL (3.2%)
Bed Bath & Beyond, Inc. * 1,600 61,088
Benetton Group SPA 900 9,475
Boots Group PLC 2,219 23,797
Coles Myer, Ltd. 3,000 15,432
Colruyt NV 100 8,629
CVS Corp. 900 27,954
Dixons Group PLC 6,600 14,748
Douglas Holding AG 500 14,202
Gap, Inc. 14,800 253,376
Great Universal Stores PLC 2,234 24,348
Hennes & Mauritz AB, Class
B 900 20,419
Home Depot, Inc. 4,400 140,140
Industria de Diseno Textil
SA (Inditex) 500 10,714
Ito-Yokado Company, Ltd. 1,000 33,299
Jusco Company, Ltd. 600 15,790
Kesa Electricals PLC * 1,290 4,774
Kingfisher PLC 5,647 24,487
Lawson, Inc. 200 6,696
Marks & Spencer Group PLC 6,403 32,552
Marui Company, Ltd. 1,700 21,304
Metro AG 400 14,440
Next PLC 200 3,735
Pinault-Printemps-Redoute
SA 10 821
SA D'Ieteren NV 10 1,637
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
27
GLOBAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Seven-Eleven Japan Company,
Ltd. 1,000 $ 31,956
Staples, Inc. * 1,200 28,500
Swatch Group AG, Registered 800 15,357
Wal-Mart Stores, Inc. 5,900 329,516
Woolworths, Ltd. 4,600 36,490
Yamada Denki Company, Ltd. 300 8,862
-----------
1,234,538
-----------
SERVICES (1.1%)
ABB, Ltd. * 2,564 14,173
Adecco SA, Registered 250 12,352
Atos Origin SA * 40 2,305
Capita Group PLC 2,200 8,992
Dai Nippon Printing
Company, Ltd. 2,000 27,427
Deutsche Boerse AG 200 10,132
Deutsche Post AG,
Registered 800 13,555
Equifax, Inc. 6,600 146,982
First Data Corp. 1,000 39,960
Hays PLC 5,700 10,204
ISS A/S 50 2,266
Itochu Corp. 4,000 12,389
Kurita Water Industries,
Ltd. 800 9,589
Medco Health Solutions,
Inc. * 808 20,951
Moody's Corp. 700 38,479
Sage Group PLC 3,400 9,278
Severn Trent PLC 900 10,041
SGS Societe Generale de
Surveillance Holding SA,
Registered 10 5,210
Wolseley PLC 600 7,000
Yahoo!, Inc. * 300 10,614
-----------
411,899
-----------
TELECOMMUNICATIONS (6.4%)
ADC Telecommunications,
Inc.* 47,700 111,141
Alcatel * 2,950 34,938
AT&T Corp. 2,740 59,047
Avaya, Inc. * 4,800 52,320
BCE, Inc. 300 6,480
BellSouth Corp. 9,300 220,224
BT Group PLC 22,166 66,288
CIENA Corp. * 3,600 21,276
Comverse Technology, Inc. * 3,400 50,864
Deutsche Telecom AG,
Registered * 4,750 68,315
Ericsson LM AB, Class B * 33,000 48,207
France Telecom SA * 1,650 37,950
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Hellenic Telecommunication
Organization SA 600 $ 6,554
i-Cable Communications,
Ltd. 570 133
JDS Uniphase Corp. * 16,800 60,480
Koninklijke KPN NV * 4,704 35,224
Lucent Technologies, Inc. * 97,400 210,384
Mobistar SA * 150 7,545
Nextel Communications,
Inc., Class A * 3,900 76,791
Nippon Telegraph &
Telephone Corp. 5 22,647
Nokia Oyj 9,100 140,098
Nortel Networks Corp. * 9,528 39,187
NTT DoCoMo, Inc. 30 73,312
Portugal Telecom SGPS SA 2,500 19,768
QUALCOMM, Inc. 2,100 87,444
Qwest Communications
International, Inc. * 8,500 28,900
Rogers Communications,
Inc., Class B 500 7,670
SBC Communications, Inc. 10,800 240,300
Singapore
Telecommunications 11,900 11,428
Swisscom AG, Registered 13 3,790
Tele Danmark A/S 210 6,455
Telecom Corp. of New
Zealand 2,700 8,275
Telecom Italia Mobile SPA 9,950 46,233
Telefonica SA 8,798 103,892
Telia AB 5,477 23,790
Telstra Corporation, Ltd. 8,500 27,270
Verizon Communications,
Inc. 3,300 107,052
Vodafone Group PLC 180,027 358,916
-----------
2,530,588
-----------
TRANSPORTATION & SHIPPING (0.6%)
British Airways PLC * 3,500 9,667
Canadian National Railway
Co. 600 31,026
Compagnie Maritime Belge SA 200 9,875
CP Railway, Ltd. 500 11,853
D/S Svendborg, Class B 2 13,644
Deutsche Lufthansa AG,
Registered 500 6,551
East Japan Railway Co. 3 14,528
Kinki Nippon Railway
Company, Ltd. * 10,300 33,745
Nippon Express Company,
Ltd. 3,000 12,541
Patrick Corporation, Ltd. 900 8,023
Peninsular and Oriental
Steam Navigation Co. 4,250 17,511
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
28
GLOBAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Swissair Group * 90 $ 0
TNT Post Group NV 959 18,126
United Parcel Service,
Inc., Class B 200 12,760
West Japan Railway Co. 1 3,840
Yamato Transport Company,
Ltd. 1,000 13,338
-----------
217,028
-----------
TRAVEL & ENTERTAINMENT (0.3%)
Accor SA 600 22,094
Cathay Pacific Airways,
Ltd. 5,000 8,458
Delta Air Lines, Inc. 1,000 13,300
Hilton Group PLC 6,400 19,113
InterContinental Hotels
Group PLC * 2,452 19,554
Kuoni Reisen Holding AG,
Registered 10 2,832
Ryanair Holdings PLC * 1,000 6,638
Tokyu Corp. 4,000 16,470
-----------
108,459
-----------
UTILITIES (2.0%)
Ameren Corp. 400 17,164
CenterPoint Energy, Inc. 15,000 137,551
Centrica PLC 12,000 36,185
Chubu Electric Power
Company, Inc. 900 17,563
CLP Holdings, Ltd. 7,300 32,051
DTE Energy Co. 1,400 51,646
EDP -- Electricidade de
Portugal SA 4,900 11,241
Endesa SA 1,400 21,635
Enel SPA 5,000 31,093
Gas Natural SDG SA 100 1,920
Hong Kong Electric Holdings 3,000 11,564
Iberdrola SA 2,106 35,439
International Power PLC * 4,000 8,855
Kansai Electric Power
Company, Inc. 1,400 23,911
Kyushu Electric Power
Company, Inc. 1,000 16,426
National Grid Group PLC 8,474 54,274
Repsol SA 1,950 32,042
RWE AG 650 17,259
Scottish and Southern
Energy PLC 1,900 19,192
Scottish Power PLC 5,400 31,513
Southern Co. 1,800 52,776
Suez SA 2,260 35,873
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Tohoku Electric Power
Company, Inc. 900 $ 14,131
Tokyo Electric Power
Company, Inc. 1,700 36,369
Union Electrica Fenosa SA 600 9,922
United Utilities PLC 2,100 16,014
-----------
773,609
- ------------------------------------------------------
TOTAL COMMON STOCK 30,251,180
- ------------------------------------------------------
PREFERRED STOCK (0.1%)
CONSUMER GOODS & SERVICES (0.0%)
Wella AG 40 3,121
-----------
INSURANCE (0.0%)
Great-West Lifeco, Inc.,
4.80%, Series E 26 509
Great-West Lifeco, Inc.,
5.90%, Series F 8 154
-----------
663
-----------
MULTIMEDIA (0.1%)
News Corporation, Ltd.,
Ordinary Shares 4,900 33,233
- ------------------------------------------------------
TOTAL PREFERRED STOCK 37,017
- ------------------------------------------------------
RIGHTS (0.0%)
INSURANCE
Royal & Sun Alliance
Insurance Group PLC 4,545 925
- ------------------------------------------------------
WARRANT (0.0%)
METALS & MINING
Inco, Ltd. 945 8,578
- ------------------------------------------------------
INVESTMENT COMPANY (0.1%)
Eureka Prime Money Market
Fund -- Trust Class 22,613 22,613
- ------------------------------------------------------
TOTAL INVESTMENTS (COST $31,230,141)
(a) -- 78.2% 30,320,313
- ------------------------------------------------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 21.8% 8,439,258
- ------------------------------------------------------
NET ASSETS -- 100.0% $38,759,571
- ------------------------------------------------------
</Table>
- ---------------
(a) Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax pur-
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
29
GLOBAL FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
poses, and differs from value by unrealized appreciation/depreciation of
securities as follows:
<Table>
Unrealized appreciation........ $2,436,000
Unrealized depreciation........ (3,345,828)
----------
Net unrealized depreciation.... $ (909,828)
==========
</Table>
(b) Affiliated security. Investments in affiliates total 0.10% of net assets.
* Represents non-income producing securities.
CVA Share Certificates.
The Global Fund's investment concentration based on percentage of market value,
by country, as of September 30, 2003, was as follows:
<Table>
<Caption>
PERCENTAGE OF
COUNTRY OF RISK VALUE
- ----------------------------------------------------
United States of America............ 56.15%
United Kingdom...................... 10.74%
Japan............................... 9.56%
France.............................. 3.74%
Switzerland......................... 2.92%
Canada.............................. 2.48%
Germany............................. 2.35%
Australia........................... 2.19%
Netherlands......................... 2.03%
Italy............................... 1.65%
Spain............................... 1.53%
Sweden.............................. 0.98%
Hong Kong........................... 0.86%
Finland............................. 0.66%
Belgium............................. 0.45%
Ireland............................. 0.39%
Singapore........................... 0.39%
Greece.............................. 0.27%
Denmark............................. 0.25%
Portugal............................ 0.21%
Norway.............................. 0.08%
Austria............................. 0.07%
New Zealand......................... 0.03%
Bermuda............................. 0.02%
-----
100.0%
=====
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
30
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
COMMON STOCK (99.5%)
AEROSPACE & MILITARY TECHNOLOGY (1.1%)
General Dynamics Corp. 11,300 $ 882,078
Lockheed Martin Corp. 8,800 406,120
Northrop Grumman Corp. 428 36,902
Raytheon Co. 4,400 123,200
United Technologies
Corp. 3,200 247,296
------------
1,695,596
------------
AUTOMOTIVE (1.7%)
Dana Corp. 1,700 26,231
Delphi Corp. 37,000 334,850
Ford Motor Co. 56,400 607,428
General Motors Corp. 4,200 171,906
Goodyear Tire & Rubber
Co. * 12,500 82,125
Harley-Davidson, Inc. 15,600 751,920
PACCAR, Inc. 8,000 597,520
Visteon Corp. 11,900 78,540
------------
2,650,520
------------
BEVERAGES & TOBACCO (4.1%)
Altria Group, Inc. 38,318 1,678,328
Anheuser-Busch Companies,
Inc. 2,400 118,416
Coca-Cola Co. 45,895 1,971,650
Coca-Cola Enterprises,
Inc. 25,500 486,030
Pepsi Bottling Group,
Inc. 24,000 493,920
PepsiCo, Inc. 31,400 1,439,062
R.J. Reynolds Tobacco
Holdings, Inc. 5,200 205,608
------------
6,393,014
------------
CHEMICALS (1.4%)
Eastman Chemical Co. 28,500 954,750
Hercules, Inc. * 7,800 88,374
International Flavors &
Fragrances, Inc. 27,300 903,084
PPG Industries, Inc. 4,300 224,546
------------
2,170,754
------------
COMPUTERS (14.2%)
Cisco Systems, Inc. * 124,024 2,423,429
Computer Associates
International, Inc. 9,400 245,434
Dell, Inc. * 33,500 1,118,565
Electronic Arts, Inc. * 2,900 267,467
EMC Corp. * 13,530 170,884
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Gateway, Inc. * 68,200 $ 386,012
Hewlett-Packard Co. 53,600 1,037,696
IBM Corp. 33,516 2,960,468
Intel Corp. 118,574 3,261,971
Intuit, Inc. * 18,900 911,736
Lexmark International,
Inc. * 1,300 81,913
Microsoft Corp. 223,188 6,202,395
Oracle Corp. * 116,760 1,310,047
PeopleSoft, Inc. * 13,700 249,203
Seagate Technology, Inc.
Escrow Shares * 13,223 0
Siebel Systems, Inc. * 13,600 132,192
Sun Microsystems, Inc. * 17,800 58,918
Texas Instruments, Inc. 46,984 1,071,235
------------
21,889,565
------------
CONSTRUCTION (0.4%)
Centex Corp. 500 38,940
KB HOME 3,700 220,742
Pulte Homes, Inc. 5,700 387,657
------------
647,339
------------
CONSUMER GOODS & SERVICES (5.8%)
Black & Decker Corp. 10,500 425,775
Clorox Co. 10,200 467,874
Colgate-Palmolive Co. 2,700 150,903
Eastman Kodak Co. 15,600 326,664
Gillette Co. 41,700 1,333,566
Kimberly-Clark Corp. 16,100 826,252
Mattel, Inc. 64,100 1,215,336
Maytag Corp. 7,100 177,287
Newell Rubbermaid, Inc. 6,100 132,187
Procter & Gamble Co. 35,500 3,295,110
Stanley Works 18,000 531,360
------------
8,882,314
------------
CONTAINERS (1.1%)
Ball Corp. 14,500 783,000
Bemis Company, Inc. 22,300 987,890
------------
1,770,890
------------
DIVERSIFIED (3.9%)
3M Co. 16,600 1,146,562
General Electric Co. 161,213 4,805,760
------------
5,952,322
------------
E-COMMERCE (0.4%)
eBay, Inc. * 11,900 634,270
------------
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
31
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
ELECTRICAL & ELECTRONIC (0.3%)
Micron Technology, Inc. * 11,300 $ 151,646
National Semiconductor
Corp. * 4,700 151,763
Progress Energy, Inc. CVO
* 9,000 0
Thomas & Betts Corp. * 8,700 137,895
------------
441,304
------------
FINANCE & BANKING (16.3%)
American Express Co. 18,200 820,092
AmSouth Bancorp 26,200 555,964
Bank of America Corp. 16,600 1,295,464
Bank One Corp. 29,800 1,151,770
BB&T Corp. 9,700 348,327
Bear Stearns Companies,
Inc. 13,800 1,032,240
Charles Schwab Corp. 50,800 605,028
Citigroup, Inc. 70,099 3,190,206
Countrywide Credit
Industries, Inc. 18,200 1,424,696
Fannie Mae 6,787 476,447
Federated Investors,
Inc., Class B 33,100 916,870
Fifth Third Bancorp 13,724 758,525
First Tennessee National
Corp. 5,100 216,546
Franklin Resources, Inc. 4,600 203,366
Freddie Mac 17,660 924,501
Golden West Financial
Corp. 1,900 170,069
Goldman Sachs Group,
Inc. 8,300 696,370
H&R Block, Inc. 10,500 453,075
J.P. Morgan Chase & Co. 20,700 710,631
Janus Capital Group,
Inc. 73,200 1,022,604
John Hancock Financial
Services, Inc. 8,300 280,540
Lehman Brothers Holdings,
Inc. 10,300 711,524
MBNA Corp. 11,900 271,320
Mellon Financial Corp. 17,900 539,506
Merrill Lynch & Co. 11,200 599,536
Morgan Stanley Dean
Witter & Co. 2,675 134,981
National City Corp. 18,400 542,064
State Street Corp. 27,100 1,219,500
U.S. Bancorp 48,900 1,173,111
Wachovia Corp. 11,700 481,923
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Washington Mutual, Inc. 13,800 $ 543,306
Wells Fargo & Co. 32,600 1,678,900
------------
25,149,002
------------
FOOD (1.4%)
Albertson's, Inc. 5,600 115,192
Campbell Soup Co. 13,600 360,400
Darden Restaurants, Inc. 20,600 391,400
Hershey Foods Corp. 1,200 87,216
Kellogg Co. 15,618 520,860
Sara Lee Corp. 38,700 710,532
------------
2,185,600
------------
HEALTH CARE (6.2%)
Amgen, Inc. * 16,300 1,052,491
Bausch & Lomb, Inc. 4,800 211,920
Baxter International,
Inc. 17,800 517,268
Becton, Dickinson and
Co. 8,500 307,020
Biomet, Inc. 9,800 329,378
HCA, Inc. 16,700 615,562
Health Management
Associates, Inc. 2,200 47,982
Johnson & Johnson 57,084 2,826,800
McKesson Corp. 19,400 645,826
Medtronic, Inc. 10,000 469,200
Tenet Healthcare Corp. * 39,100 566,168
UnitedHealth Group, Inc. 15,300 769,896
WellPoint Health
Networks, Inc. * 1,600 123,328
Zimmer Holdings, Inc. * 18,600 1,024,860
------------
9,507,699
------------
INSURANCE (5.8%)
Aetna, Inc. 11,600 707,948
AFLAC, Inc. 16,000 516,800
Allstate Corp. 30,600 1,117,818
American International
Group, Inc. 41,126 2,372,970
Cigna Corp. 7,100 317,015
Hartford Financial
Services Group, Inc. 27,500 1,447,325
Marsh & McLennan
Companies, Inc. 4,600 219,006
Principal Financial
Group, Inc. 27,100 839,829
Progressive Corp. 3,100 214,241
SAFECO Corp. 31,200 1,100,112
XL Capital, Ltd., Class A 2,200 170,368
------------
9,023,432
------------
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
32
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
MANUFACTURING (2.1%)
Avery Dennison Corp. 13,400 $ 676,968
Deere & Co. 25,700 1,370,067
Eaton Corp. 8,100 717,822
Linear Technology Corp. 6,700 239,927
Textron, Inc. 2,000 78,900
Worthington Industries,
Inc. 6,800 85,408
------------
3,169,092
------------
METALS & MINING (0.1%)
Phelps Dodge Corp. * 3,400 159,120
------------
MULTIMEDIA (2.5%)
AOL Time Warner, Inc. * 26,700 403,437
Comcast Corp., Class A * 15,396 475,428
Gannett Company, Inc. 2,300 178,388
McGraw-Hill Companies,
Inc. 15,100 938,163
Meredith Corp. 6,200 286,254
Viacom, Inc., Class B 39,977 1,531,120
------------
3,812,790
------------
OIL & GAS (6.9%)
Anadarko Petroleum Corp. 13,500 563,760
BJ Services Co. * 16,500 563,805
Burlington Resources,
Inc. 5,100 245,820
ChevronTexaco Corp. 15,715 1,122,837
ConocoPhillips 10,560 578,160
Devon Energy Corp. 25,000 1,204,750
EOG Resources, Inc. 9,400 392,356
Exxon Mobil Corp. 127,620 4,670,892
Kerr-McGee Corp. 6,300 281,232
Unocal Corp. 32,300 1,018,096
------------
10,641,708
------------
PHARMACEUTICALS (7.4%)
Abbott Laboratories 35,900 1,527,545
AmerisourceBergen Corp. 4,300 232,415
Bristol-Myers Squibb Co. 34,000 872,440
Cardinal Health, Inc. 8,950 522,591
Eli Lilly and Co. 7,372 437,897
Forest Laboratories,
Inc.* 7,900 406,455
Merck & Company, Inc. 59,400 3,006,828
Pfizer, Inc. 113,574 3,450,377
Wyeth 21,300 981,930
------------
11,438,478
------------
PRINTING & PUBLISHING (0.1%)
Tribune Co. 2,600 119,340
------------
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
RETAIL (5.5%)
Bed Bath & Beyond, Inc. * 7,500 $ 286,350
Best Buy Company, Inc. * 1,500 71,280
Big Lots, Inc. * 21,900 346,239
CVS Corp. 16,000 496,960
Gap, Inc. 48,100 823,472
Home Depot, Inc. 47,850 1,524,023
J.C. Penney, Inc.
(Holding Co.) 4,200 89,754
Jones Apparel Group,
Inc. 3,600 107,748
Kohl's Corp. * 1,700 90,950
Limited Brands 3,800 57,304
Lowe's Companies, Inc. 7,500 389,250
Nordstrom, Inc. 4,000 99,240
Office Depot, Inc. * 6,300 88,515
Staples, Inc. * 17,000 403,750
Wal-Mart Stores, Inc. 64,368 3,594,952
------------
8,469,787
------------
SERVICES (1.4%)
Automatic Data
Processing, Inc. 2,500 89,625
Cintas Corp. 1,400 51,576
Deluxe Corp. 4,100 164,574
Equifax, Inc. 23,800 530,026
First Data Corp. 10,500 419,580
Medco Health Solutions,
Inc. * 5,185 134,447
Moody's Corp. 8,600 472,742
Yahoo!, Inc. * 6,600 233,508
------------
2,096,078
------------
TELECOMMUNICATIONS (6.7%)
ADC Telecommunications,
Inc. * 150,400 350,432
Andrew Corp. * 3,900 47,931
AT&T Corp. 36,600 788,730
AT&T Wireless Services,
Inc. * 23,400 191,412
Avaya, Inc. * 32,200 350,980
BellSouth Corp. 73,700 1,745,215
CIENA Corp. * 43,500 257,085
Citizens Communications
Co. * 27,100 303,791
Comverse Technology, Inc.
* 15,300 228,888
Corning, Inc. * 7,600 71,592
JDS Uniphase Corp. * 75,400 271,440
Lucent Technologies,
Inc.* 287,400 620,784
Motorola, Inc. 60,740 727,058
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
33
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- continued
SEPTEMBER 30, 2003
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
Nextel Communications,
Inc., Class A * 42,000 $ 826,980
QUALCOMM, Inc. 12,000 499,680
Qwest Communications
International, Inc. * 56,100 190,740
SBC Communications, Inc. 69,527 1,546,976
Verizon Communications,
Inc. 41,202 1,336,593
------------
10,356,307
------------
TRANSPORTATION & SHIPPING (0.7%)
United Parcel Service,
Inc., Class B 16,500 1,052,700
------------
TRAVEL & ENTERTAINMENT (0.5%)
Delta Air Lines, Inc. 57,600 766,080
Sabre Holdings Corp. 3,000 64,470
------------
830,550
------------
UTILITIES (1.5%)
Ameren Corp. 11,800 506,338
CenterPoint Energy, Inc. 95,600 876,652
DTE Energy Co. 21,200 782,068
NiSource, Inc. 5,000 99,900
NiSource, Inc. -- Sails * 9,098 21,471
Southern Co. 2,200 64,504
------------
2,350,933
- ------------------------------------------------------
TOTAL COMMON STOCK 153,490,504
- ------------------------------------------------------
</Table>
<Table>
<Caption>
SHARES VALUE
- ------------------------------------------------------
INVESTMENT COMPANY (0.2%)
Eureka Prime Money Market
Fund-Trust Class 367,319 $ 367,319
- ------------------------------------------------------
TOTAL INVESTMENTS
(COST $154,020,530) (a) -- 99.7% 153,857,823
- ------------------------------------------------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.3% 392,541
- ------------------------------------------------------
NET ASSETS -- 100.0% $154,250,364
- ------------------------------------------------------
</Table>
- ---------------
(a) Represents cost for financial reporting purposes, and is substantially the
same as cost for federal income tax purposes, and differs from value basis
by unrealized appreciation/depreciation of securities as follows:
<Table>
Unrealized appreciation... $ 13,012,647
Unrealized depreciation... (13,175,354)
------------
Net unrealized
depreciation............ $ (162,707)
============
</Table>
* Represents non-income producing securities.
CVO Contingent Value Obligation.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
34
(This page intentionally left blank)
35
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2003
<Table>
<Caption>
U.S. TREASURY PRIME
OBLIGATIONS MONEY MARKET
FUND FUND
------------- ------------
ASSETS:
Investments, at amortized cost............................ $ 65,381,799 $178,068,433
Repurchase agreements, at cost............................ 34,449,000 84,296,000
------------ ------------
Total Investments......................................... 99,830,799 262,364,433
Cash...................................................... 901 883
Interest and dividends receivable......................... 921,350 1,215,056
Administration fee receivable............................. -- 278,117
Receivable for investments sold........................... 201,770 370,235
Prepaid expenses.......................................... 3,530 9,878
------------ ------------
Total Assets............................................ 100,958,350 264,238,602
------------ ------------
LIABILITIES:
Dividends payable......................................... 30,849 83,987
Payable for investments purchased......................... -- 118,343
Investment advisory fees payable.......................... 17,452 65,386
Administration fees payable............................... 2,928 --
Distribution fees payable................................. 17,035 36,212
Other..................................................... 42,619 81,830
------------ ------------
Total Liabilities....................................... 110,883 385,758
------------ ------------
NET ASSETS.................................................. $100,847,467 $263,852,844
============ ============
NET ASSETS CONSIST OF:
Capital................................................... $100,881,496 $264,003,729
Undistributed net investment income....................... 368 132,722
Accumulated net realized losses on investments............ (34,397) (283,607)
------------ ------------
NET ASSETS.................................................. $100,847,467 $263,852,844
============ ============
TRUST SHARES:
Net Assets................................................ $ 24,825,497 $ 90,433,231
Shares Outstanding........................................ 24,837,045 90,397,630
------------ ------------
Net Asset Value (offering and redemption price per
share).................................................. $ 1.00 $ 1.00
============ ============
CLASS A:
Net Assets................................................ $ 76,011,688 $173,409,313
Shares Outstanding........................................ 76,034,536 173,448,962
------------ ------------
Net Asset Value (offering and redemption price per
share).................................................. $ 1.00 $ 1.00
============ ============
CLASS B:
Net Assets................................................ $ 10,282 $ 10,300
Shares Outstanding........................................ 10,280 10,293
------------ ------------
Net Asset Value (offering and redemption price (a) per
share).................................................. $ 1.00 $ 1.00
============ ============
</Table>
- ---------------
(a) Redemption price per share varies by length of time the shares are held.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
36
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2003
<Table>
<Caption>
INVESTMENT
GRADE BOND
FUND GLOBAL FUND EQUITY FUND
------------ ----------- ------------
ASSETS:
Investments, at value (cost $150,279,710; $31,189,174; and
$154,020,530, respectively)............................. $156,766,220 $30,281,091 $153,857,823
Investments in affiliates, at value (cost $0; $40,967; and
$0, respectively)....................................... -- 39,222 --
------------ ----------- ------------
Total Investments......................................... 156,766,220 30,320,313 153,857,823
Foreign currency, at value (cost $0; $12,299; and $0,
respectively)........................................... -- 12,303 --
Cash...................................................... 2,190,055 8,393,958 420,639
Interest and dividends receivable......................... 1,517,193 70,689 217,460
Reclaims receivable....................................... -- 34,440 --
Prepaid expenses.......................................... 6,979 2,659 5,381
------------ ----------- ------------
Total Assets............................................ 160,480,447 38,834,362 154,501,303
------------ ----------- ------------
LIABILITIES:
Dividends payable......................................... 509,412 -- 93,941
Payable for investments purchased......................... 2,562,700 -- --
Investment advisory fees payable.......................... 75,910 29,595 97,597
Administration fees payable............................... 4,194 1,042 4,148
Distribution fees payable................................. 646 112 286
Other..................................................... 54,404 44,042 54,967
------------ ----------- ------------
Total Liabilities....................................... 3,207,266 74,791 250,939
------------ ----------- ------------
NET ASSETS.................................................. $157,273,181 $38,759,571 $154,250,364
============ =========== ============
NET ASSETS CONSIST OF:
Capital................................................... $150,130,284 $49,238,581 $175,858,441
Undistributed (distributions in excess of) net investment
income.................................................. 1,959 (66,706) (10,176)
Accumulated undistributed net realized gains (losses) on
investments and foreign currency transactions........... 654,428 (9,508,579) (21,435,194)
Net unrealized appreciation (depreciation) of investments
and foreign currency transactions....................... 6,486,510 (903,725) (162,707)
------------ ----------- ------------
NET ASSETS.................................................. $157,273,181 $38,759,571 $154,250,364
============ =========== ============
TRUST SHARES:
Net Assets................................................ $155,371,585 $38,294,817 $153,396,607
Shares Outstanding........................................ 14,961,861 4,204,870 26,514,795
------------ ----------- ------------
Net Asset Value (offering and redemption price per
share).................................................. $ 10.38 $ 9.11 $ 5.79
============ =========== ============
CLASS A SHARES:
Net Assets................................................ $ 1,472,385 $ 431,000 $ 670,167
Shares Outstanding........................................ 141,491 47,498 117,082
------------ ----------- ------------
Net Asset Value (redemption price per share).............. $ 10.41 $ 9.07 $ 5.72
============ =========== ============
Maximum Sales Charge...................................... 3.50% 5.00% 5.00%
============ =========== ============
Maximum Offering Price per Share (100%/(100% - Maximum
Sales Charge) of Net Asset Value adjusted to the nearest
cent)................................................... $ 10.79 $ 9.55 $ 6.02
============ =========== ============
CLASS B SHARES:
Net Assets................................................ $ 429,211 $ 33,754 $ 183,590
Shares Outstanding........................................ 41,291 3,779 32,465
------------ ----------- ------------
Net Asset Value (offering and redemption price (a) per
share).................................................. $ 10.39 $ 8.93 $ 5.66
============ =========== ============
</Table>
- ---------------
(a) Redemption price per share varies by length of time shares are held.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
37
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2003
<Table>
<Caption>
U.S. TREASURY PRIME
OBLIGATIONS MONEY MARKET
FUND FUND
------------- ------------
INVESTMENT INCOME:
Interest.................................................. $1,402,565 $4,067,284
Dividends................................................. 88,713 529,248
---------- ----------
Total Investment Income................................. 1,491,278 4,596,532
---------- ----------
EXPENSES:
Investment advisory fees.................................. 209,797 921,472
Administration fees....................................... 204,451 598,464
Distribution fees -- Class A.............................. 195,508 536,891
Distribution fees -- Class B.............................. 102 102
Shareholder service fees -- Class A....................... 195,508 536,891
Fund accounting fees...................................... 31,318 85,332
Transfer agent fees....................................... 50,696 94,556
Other..................................................... 84,576 170,421
---------- ----------
Total expenses before waivers........................... 971,956 2,944,129
Less expenses waived by the Administrator and its
affiliates............................................. (195,537) (821,966)
---------- ----------
Net Expenses............................................ 776,419 2,122,163
---------- ----------
NET INVESTMENT INCOME....................................... 714,859 2,474,369
---------- ----------
REALIZED GAINS (LOSSES) ON INVESTMENT TRANSACTIONS:
Net realized gains (losses) on investment transactions.... (140) 52,653
---------- ----------
NET REALIZED GAINS (LOSSES) ON INVESTMENT TRANSACTIONS...... (140) 52,653
---------- ----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS.............. $ 714,719 $2,527,022
========== ==========
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
38
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2003
<Table>
<Caption>
INVESTMENT
GRADE
BOND FUND GLOBAL FUND EQUITY FUND
---------- ----------- -----------
INVESTMENT INCOME:
Interest.................................................. $7,144,741 $ 70 $ 2,803
Dividends (net of foreign withholding tax of $0; $48,310;
and $0, respectively)................................... 37,450 725,873 2,634,154
---------- ----------- -----------
Total Investment Income................................. 7,182,191 725,943 2,636,957
---------- ----------- -----------
EXPENSES:
Investment advisory fees.................................. 898,178 323,681 1,141,862
Administration fees....................................... 291,805 70,111 296,776
Distribution fees -- Class A.............................. 3,001 1,088 1,741
Distribution fees -- Class B.............................. 2,070 85 513
Shareholder service fees -- Class A....................... 3,001 1,088 1,741
Fund accounting fees...................................... 59,794 124,304 52,835
Custodian fees............................................ 12,559 97,966 26,183
Transfer agent fees....................................... 74,412 62,190 74,719
Other..................................................... 87,634 45,027 86,163
---------- ----------- -----------
Total expenses before waivers........................... 1,432,454 725,540 1,682,533
Less expenses waived by the Administrator............... (3,001) (1,088) (1,741)
---------- ----------- -----------
Net Expenses............................................ 1,429,453 724,452 1,680,792
---------- ----------- -----------
NET INVESTMENT INCOME....................................... 5,752,738 1,491 956,165
---------- ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gains (losses) on investments and foreign
currency transactions................................... 1,447,206 (2,464,791) (3,223,100)
Change in unrealized appreciation/depreciation of
investments and foreign currency transactions........... (848,784) 9,750,787 32,179,481
---------- ----------- -----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS..................................... 598,422 7,285,996 28,956,381
---------- ----------- -----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS.............. $6,351,160 $7,287,487 $29,912,546
========== =========== ===========
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
39
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
U.S. TREASURY OBLIGATIONS FUND PRIME MONEY MARKET FUND
------------------------------ ----------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------------ ----------------------------
2003 2002 2003 2002
------------- ------------- ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income (loss).......... $ 714,859 $ 2,150,953 $ 2,474,369 $ 6,147,459
Net realized gains (losses) on
investments and foreign currency
transactions........................ (140) 3,577 52,653 (261,391)
Change in unrealized
appreciation/depreciation of
investments and foreign currency
transactions........................ -- -- -- --
------------ ------------ ------------ ------------
Change in net assets from
operations.......................... 714,719 2,154,530 2,527,022 5,886,068
DIVIDENDS TO TRUST SHAREHOLDERS:
From net investment income............ (234,798) (497,316) (792,052) (1,404,927)
From net realized gains on
investments......................... -- -- -- --
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income............ (480,010) (1,654,587) (1,401,278) (4,746,430)
From net realized gains on
investments......................... -- -- -- --
DIVIDENDS TO CLASS B SHAREHOLDERS:
From net investment income............ (17) (55) (15) (66)
From net realized gains on
investments......................... -- -- -- --
------------ ------------ ------------ ------------
Total dividends to shareholders....... (714,825) (2,151,958) (2,193,345) (6,151,423)
CAPITAL TRANSACTIONS:
Change in net assets from capital
transactions........................ (7,318,684) (50,767,322) (77,607,533) (63,729,926)
------------ ------------ ------------ ------------
Change in net assets.................. (7,318,790) (50,764,750) (77,273,856) (63,995,281)
NET ASSETS:
Beginning of period................... 108,166,257 158,931,007 341,126,700 405,121,981
------------ ------------ ------------ ------------
End of period......................... $100,847,467 $108,166,257 $263,852,844 $341,126,700
============ ============ ============ ============
Undistributed (distributions in excess
of) net investment income............. $ 368 $ (386) $ 138,722 $ 640
============ ============ ============ ============
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
40
<Table>
<Caption>
INVESTMENT GRADE BOND FUND GLOBAL FUND
--------------------------- ---------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
--------------------------- ---------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income
(loss)...................... $ 5,752,738 $ 6,722,612 $ 1,491 $ (58,235)
Net realized gains (losses) on
investments and foreign
currency transactions....... 1,447,206 124,551 (2,464,791) (6,198,095)
Change in unrealized
appreciation/ depreciation
of investments and foreign
currency transactions....... (848,784) 2,847,242 9,750,787 (1,852,752)
------------ ------------ ------------ ------------
Change in net assets from
operations.................. 6,351,160 9,694,405 7,287,487 (8,109,082)
DIVIDENDS TO TRUST
SHAREHOLDERS:
From net investment income.... (6,195,519) (6,819,659) -- (826,163)
From net realized gains on
investments.................. -- -- (64,070) (112,945)
DIVIDENDS TO CLASS A
SHAREHOLDERS:
From net investment income.... (46,847) (47,486) -- (8,563)
From net realized gains on
investments.................. -- -- (908) (1,687)
DIVIDENDS TO CLASS B
SHAREHOLDERS:
From net investment income.... (6,287) (505) -- (76)
From net realized gains on
investments.................. -- -- (9) (12)
------------ ------------ ------------ ------------
Total dividends to
shareholders................. (6,248,653) (6,867,650) (64,987) (949,446)
CAPITAL TRANSACTIONS:
Change in net assets from
capital transactions......... 23,128,991 2,717,998 (787,009) (35,474,804)
------------ ------------ ------------ ------------
Change in net assets.......... 23,231,498 5,544,753 6,435,491 (44,533,332)
NET ASSETS:
Beginning of period........... 134,041,683 128,496,930 32,324,080 76,857,412
------------ ------------ ------------ ------------
End of period................. $157,273,181 $134,041,683 $ 38,759,571 $ 32,324,080
============ ============ ============ ============
Undistributed (distributions
in excess of) net investment
income....................... $ 1,959 $ 556 $ (66,706) $ (49,034)
============ ============ ============ ============
<Caption>
EQUITY FUND
---------------------------
YEAR ENDED SEPTEMBER 30,
---------------------------
2003 2002
------------ ------------
CHANGE IN NET ASSETS:
OPERATIONS:
Net investment income
(loss)...................... $ 956,165 $ 499,540
Net realized gains (losses) on
investments and foreign
currency transactions....... (3,223,100) (15,643,697)
Change in unrealized
appreciation/ depreciation
of investments and foreign
currency transactions....... 32,179,481 (18,321,463)
------------ ------------
Change in net assets from
operations.................. 29,912,546 (33,465,620)
DIVIDENDS TO TRUST
SHAREHOLDERS:
From net investment income.... (953,717) (512,694)
From net realized gains on
investments.................. -- (3,195,718)
DIVIDENDS TO CLASS A
SHAREHOLDERS:
From net investment income.... (2,757) (1,520)
From net realized gains on
investments.................. -- (15,780)
DIVIDENDS TO CLASS B
SHAREHOLDERS:
From net investment income.... (33) --
From net realized gains on
investments.................. -- (369)
------------ ------------
Total dividends to
shareholders................. (956,507) (3,726,081)
CAPITAL TRANSACTIONS:
Change in net assets from
capital transactions......... (10,123,484) 21,896,226
------------ ------------
Change in net assets.......... 18,832,555 (15,295,475)
NET ASSETS:
Beginning of period........... 135,417,809 150,713,284
------------ ------------
End of period................. $154,250,364 $135,417,809
============ ============
Undistributed (distributions
in excess of) net investment
income....................... $ (10,176) $ (9,834)
============ ============
</Table>
41
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<Table>
<Caption>
U.S. TREASURY OBLIGATIONS FUND PRIME MONEY MARKET FUND
------------------------------ ------------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
------------------------------ ------------------------------
2003 2002 2003 2002
------------- ------------- ------------- -------------
CAPITAL TRANSACTIONS:
TRUST SHARES:
Proceeds from shares issued........... $ 79,016,967 $ 78,603,250 $ 638,790,815 $ 708,473,543
Dividends reinvested.................. 2,504 5,860 365,594 441,407
Cost of shares redeemed............... (86,259,126) (71,186,671) (628,090,889) (731,733,613)
------------- ------------- ------------- -------------
Changes in net assets from Trust
capital transactions................ $ (7,239,655) $ 7,422,439 $ 11,065,520 $ (22,818,663)
============= ============= ============= =============
CLASS A SHARES:
Proceeds from shares issued........... $ 441,640,054 $ 466,714,722 $ 706,846,682 $ 867,678,599
Dividends reinvested.................. 3,616 5,080 79,271 237,053
Cost of shares redeemed............... (441,722,717) (524,909,630) (795,599,024) (908,826,995)
------------- ------------- ------------- -------------
Changes in net assets from Class A
capital transactions................ $ (79,047) $ (58,189,828) $ (88,673,071) $ (40,911,343)
============= ============= ============= =============
CLASS B SHARES:
Proceeds from shares issued........... $ -- $ -- $ -- $ --
Dividends reinvested.................. 18 67 18 80
Cost of shares redeemed............... -- -- -- --
------------- ------------- ------------- -------------
Changes in net assets from Class B.... $ 18 $ 67 $ 18 $ 80
============= ============= ============= =============
Change in net assets from capital
transactions........................ $ (7,318,684) $ (50,767,322) $ (77,607,533) $ (63,729,926)
============= ============= ============= =============
SHARE TRANSACTIONS:
TRUST SHARES:
Issued................................ 79,016,967 78,603,250 638,790,815 708,473,543
Reinvested............................ 2,504 5,860 365,594 441,407
Redeemed.............................. (86,259,126) (71,186,671) (628,090,889) (731,733,613)
------------- ------------- ------------- -------------
Change in Trust Shares................ (7,239,655) 7,422,439 11,065,520 (22,818,663)
============= ============= ============= =============
CLASS A SHARES:
Issued................................ 441,640,054 466,714,722 706,846,682 867,678,599
Reinvested............................ 3,616 5,080 79,272 237,063
Redeemed.............................. (441,722,717) (524,909,630) (795,599,024) (908,826,995)
------------- ------------- ------------- -------------
Change in Class A Shares.............. (79,047) (58,189,828) (88,673,070) (40,911,333)
============= ============= ============= =============
CLASS B SHARES:
Issued................................ -- -- -- --
Reinvested............................ 18 67 18 80
Redeemed.............................. -- -- -- --
------------- ------------- ------------- -------------
Change in Class B Shares.............. 18 67 18 80
============= ============= ============= =============
Change in share transactions.......... (7,318,684) (50,767,322) (77,607,532) (63,729,916)
============= ============= ============= =============
</Table>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
42
<Table>
<Caption>
INVESTMENT GRADE BOND FUND GLOBAL FUND EQUITY FUND
--------------------------- --------------------------- ---------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
--------------------------- --------------------------- ---------------------------
2003 2002 2003 2002 2003 2002
------------ ------------ ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
TRUST SHARES:
Proceeds from shares
issued............... $ 49,103,550 $ 42,608,919 $ 15,262,256 $ 3,587,314 $ 29,058,224 $ 45,177,568
Dividends reinvested... 3,066,580 3,718,611 63,887 631,103 568,991 3,469,426
Cost of shares
redeemed............. (30,007,607) (43,376,299) (16,044,736) (39,300,183) (39,835,840) (26,677,316)
------------ ------------ ------------ ------------ ------------ ------------
Changes in net assets
from Trust
capital transactions... $ 22,162,523 $ 2,951,231 $ (718,593) $(35,081,766) $(10,208,625) $ 21,969,678
============ ============ ============ ============ ============ ============
CLASS A SHARES:
PROCEEDS FROM SHARES
ISSUED.................. $ 1,255,556 $ 360,291 $ 77,175 $ 64,895 $ 166,823 $ 237,620
Dividends reinvested..... 37,916 44,415 839 10,040 2,285 16,937
Cost of shares
redeemed................ (741,762) (638,446) (174,519) (473,072) (245,869) (328,378)
------------ ------------ ------------ ------------ ------------ ------------
Changes in net assets
from Class A
capital transactions..... $ 551,710 $ (233,740) $ (96,505) $ (398,137) $ (76,761) $ (73,821)
============ ============ ============ ============ ============ ============
CLASS B SHARES:
PROCEEDS FROM SHARES
ISSUED.................. $ 431,298 $ -- $ 28,080 $ 5,011 $ 161,869 $ --
Dividends reinvested..... 4,882 507 9 88 33 369
Cost of shares
redeemed................ (21,422) -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Changes in net assets
from Class B............ $ 414,758 $ 507 $ 28,089 $ 5,099 $ 161,902 $ 369
============ ============ ============ ============ ============ ============
Change in net assets from
capital transactions..... $ 23,128,991 $ 2,717,998 $ (787,009) $(35,474,804) $(10,123,484) $ 21,896,226
============ ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
TRUST SHARES:
ISSUED................... 4,744,102 4,219,274 1,853,838 381,565 5,603,118 7,522,812
Reinvested............... 295,754 370,051 7,996 63,075 108,080 543,636
Redeemed................. (2,890,550) (4,314,700) (1,927,037) (4,106,760) (7,529,904) (4,283,095)
------------ ------------ ------------ ------------ ------------ ------------
Change in Trust Shares... 2,149,306 274,625 (65,203) (3,662,120) (1,818,706) 3,783,353
============ ============ ============ ============ ============ ============
CLASS A SHARES:
ISSUED................... 120,798 35,660 9,957 7,457 31,853 38,993
Reinvested............... 3,650 4,409 105 1,004 436 2,673
Redeemed................. (71,739) (63,180) (22,081) (49,744) (46,074) (53,332)
------------ ------------ ------------ ------------ ------------ ------------
Change in Class A
Shares.................. 52,709 (23,111) (12,019) (41,283) (13,785) (11,666)
============ ============ ============ ============ ============ ============
CLASS B SHARES:
ISSUED................... 41,622 -- 3,184 497 29,355 --
Reinvested............... 471 50 1 9 6 59
Redeemed................. (2,092) -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Change in Class B
Shares.................. 40,001 50 3,185 506 29,361 59
============ ============ ============ ============ ============ ============
Change in share
transactions............ 2,242,016 251,564 (74,037) (3,702,897) (1,803,130) 3,771,746
============ ============ ============ ============ ============ ============
</Table>
43
FINANCIAL HIGHLIGHTS
TRUST SHARES
<Table>
<Caption>
INVESTMENT ACTIVITIES LESS DIVIDENDS FROM
------------------------------------------- ---------------------------------
NET REALIZED
NET ASSET AND UNREALIZED TOTAL
VALUE, NET GAINS FROM NET NET
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME (LOSS) INVESTMENTS ACTIVITIES INCOME GAINS DIVIDENDS
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS FUND
Year Ended September 30, 2003..... $ 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended September 30, 2002..... $ 1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended September 30, 2001..... $ 1.00 0.05 -- 0.05 (0.05) -- (0.05)
Year Ended September 30, 2000..... $ 1.00 0.05 -- 0.05 (0.05) -- (0.05)
Year Ended September 30, 1999..... $ 1.00 0.04 -- 0.04 (0.04) -- (0.04)
PRIME MONEY MARKET FUND
Year Ended September 30, 2003..... $ 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended September 30, 2002..... $ 1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended September 30, 2001..... $ 1.00 0.05 -- 0.05 (0.05) -- (0.05)
Year Ended September 30, 2000..... $ 1.00 0.06 -- 0.06 (0.06) -- (0.06)
Year Ended September 30, 1999..... $ 1.00 0.05 -- 0.05 (0.05) -- (0.05)
INVESTMENT GRADE BOND FUND
Year Ended September 30, 2003..... $10.39 0.40 0.02 0.42 (0.43) -- (0.43)
Year Ended September 30, 2002..... $10.16 0.49 0.24 0.73 (0.50) -- (0.50)
Year Ended September 30, 2001..... $ 9.53 0.54 0.63 1.17 (0.54) -- (0.54)
Year Ended September 30, 2000..... $ 9.49 0.55 0.04 0.59 (0.55) -- (0.55)
Year Ended September 30, 1999..... $10.40 0.53 (0.67) (0.14) (0.53) (0.24) (0.77)
GLOBAL FUND
Year Ended September 30, 2003..... $ 7.46 --(c)(d) 1.66 1.66 -- (0.01) (0.01)
Year Ended September 30, 2002..... $ 9.57 (0.01)(d) (1.93) (1.94) (0.15) (0.02) (0.17)
Year Ended September 30, 2001..... $12.25 0.13 (2.17) (2.04) (0.17) (0.47) (0.64)
Year Ended September 30, 2000..... $11.97 0.20 0.69 0.89 (0.20) (0.41) (0.61)
Year Ended September 30, 1999..... $10.51 0.17 1.51 1.68 (0.15) (0.07) (0.22)
EQUITY FUND
Year Ended September 30, 2003..... $ 4.76 0.04 1.03 1.07 (0.04) -- (0.04)
Year Ended September 30, 2002..... $ 6.10 0.02 (1.22) (1.20) (0.02) (0.12) (0.14)
Year Ended September 30, 2001..... $11.53 0.02 (2.58) (2.56) (0.02) (2.85) (2.87)
Year Ended September 30, 2000..... $12.03 0.02 1.20 1.22 (0.02) (1.70) (1.72)
Year Ended September 30, 1999..... $10.96 0.04 2.56 2.60 (0.04) (1.49) (1.53)
</Table>
- ---------------
(a) During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratio would have been as indicated.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(c) Amount less than $0.005.
(d) Per share net investment loss has been calculated using the daily average
shares method.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
44
<Table>
<Caption>
CHANGE IN NET ASSET
NET ASSET VALUE, NET ASSETS,
VALUE END OF TOTAL END OF PERIOD
PER SHARE PERIOD RETURN (000'S)
----------------------------------------------
U.S. TREASURY OBLIGATIONS
FUND
Year Ended September 30,
2003.................... -- $ 1.00 0.87% $ 24,825
Year Ended September 30,
2002.................... -- $ 1.00 1.55% $ 32,065
Year Ended September 30,
2001.................... -- $ 1.00 4.77% $ 24,642
Year Ended September 30,
2000.................... -- $ 1.00 5.53% $ 17,948
Year Ended September 30,
1999.................... -- $ 1.00 4.52% $104,553
PRIME MONEY MARKET FUND
Year Ended September 30,
2003.................... -- $ 1.00 0.87% $ 90,433
Year Ended September 30,
2002.................... -- $ 1.00 1.66% $ 79,252
Year Ended September 30,
2001.................... -- $ 1.00 4.83% $102,119
Year Ended September 30,
2000.................... -- $ 1.00 5.82% $ 74,350
Year Ended September 30,
1999.................... -- $ 1.00 4.74% $221,565
INVESTMENT GRADE BOND FUND
Year Ended September 30,
2003.................... (0.01) $10.38 4.16% $155,372
Year Ended September 30,
2002.................... 0.23 $10.39 7.46% $133,104
Year Ended September 30,
2001.................... 0.63 $10.16 12.62% $127,346
Year Ended September 30,
2000.................... 0.04 $ 9.53 6.48% $127,599
Year Ended September 30,
1999.................... (0.91) $ 9.49 (1.36)% $152,106
GLOBAL FUND
Year Ended September 30,
2003.................... 1.65 $ 9.11 22.34% $ 38,295
Year Ended September 30,
2002.................... (2.11) $ 7.46 (20.74)% $ 31,876
Year Ended September 30,
2001.................... (2.68) $ 9.57 (17.44)% $ 75,895
Year Ended September 30,
2000.................... 0.28 $12.25 7.43% $ 79,801
Year Ended September 30,
1999.................... 1.46 $11.97 16.09% $ 83,111
EQUITY FUND
Year Ended September 30,
2003.................... 1.03 $ 5.79 22.40% $153,397
Year Ended September 30,
2002.................... (1.34) $ 4.76 (20.23)% $134,786
Year Ended September 30,
2001.................... (5.43) $ 6.10 (27.86)% $149,831
Year Ended September 30,
2000.................... (0.50) $11.53 10.26% $208,379
Year Ended September 30,
1999.................... 1.07 $12.03 24.72% $188,259
<Caption>
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------
NET PORTFOLIO
NET INVESTMENT TURNOVER
EXPENSES INCOME (LOSS) EXPENSES (a) RATE (b)
---------------------------------------------------
U.S. TREASURY OBLIGATIONS
FUND
Year Ended September 30,
2003.................... 0.55% 0.88% 0.55% N/A
Year Ended September 30,
2002.................... 0.50% 1.54% 0.57% N/A
Year Ended September 30,
2001.................... 0.51% 4.59% 0.54% N/A
Year Ended September 30,
2000.................... 0.45% 5.15% 0.55% N/A
Year Ended September 30,
1999.................... 0.46% 4.42% 0.56% N/A
PRIME MONEY MARKET FUND
Year Ended September 30,
2003.................... 0.50% 0.96% 0.60% N/A
Year Ended September 30,
2002.................... 0.58% 1.66% 0.63% N/A
Year Ended September 30,
2001.................... 0.57% 4.75% 0.62% N/A
Year Ended September 30,
2000.................... 0.46% 5.56% 0.63% N/A
Year Ended September 30,
1999.................... 0.51% 4.64% 0.67% N/A
INVESTMENT GRADE BOND FUND
Year Ended September 30,
2003.................... 0.95% 3.85% 0.95% 53%
Year Ended September 30,
2002.................... 0.99% 4.87% 0.99% 77%
Year Ended September 30,
2001.................... 0.91% 5.53% 0.95% 61%
Year Ended September 30,
2000.................... 0.84% 5.86% 0.94% 58%
Year Ended September 30,
1999.................... 0.87% 5.43% 0.97% 52%
GLOBAL FUND
Year Ended September 30,
2003.................... 2.01% 0.01% 2.01% 87%
Year Ended September 30,
2002.................... 1.78% (0.11)% 1.78% 104%
Year Ended September 30,
2001.................... 1.42% 1.30% 1.46% 72%
Year Ended September 30,
2000.................... 1.24% 1.60% 1.34% 28%
Year Ended September 30,
1999.................... 1.30% 1.51% 1.40% 29%
EQUITY FUND
Year Ended September 30,
2003.................... 1.10% 0.63% 1.10% 102%
Year Ended September 30,
2002.................... 1.13% 0.31% 1.13% 109%
Year Ended September 30,
2001.................... 1.05% 0.20% 1.08% 116%
Year Ended September 30,
2000.................... 0.96% 0.20% 1.06% 84%
Year Ended September 30,
1999.................... 0.99% 0.32% 1.09% 46%
</Table>
45
FINANCIAL HIGHLIGHTS
CLASS A SHARES
<Table>
<Caption>
INVESTMENT ACTIVITIES LESS DIVIDENDS FROM
------------------------------------------- ---------------------------------
NET REALIZED
NET ASSET AND UNREALIZED TOTAL
VALUE, NET GAINS FROM NET NET
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME (LOSS) INVESTMENTS ACTIVITIES INCOME GAINS DIVIDENDS
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS FUND
Year Ended September 30, 2003..... $ 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended September 30, 2002..... $ 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended September 30, 2001..... $ 1.00 0.04 -- 0.04 (0.04) -- (0.04)
Year Ended September 30, 2000..... $ 1.00 0.05 -- 0.05 (0.05) -- (0.05)
Year Ended September 30, 1999..... $ 1.00 0.04 -- 0.04 (0.04) -- (0.04)
PRIME MONEY MARKET FUND
Year Ended September 30, 2003..... $ 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended September 30, 2002..... $ 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended September 30, 2001..... $ 1.00 0.04 -- 0.04 (0.04) -- (0.04)
Year Ended September 30, 2000..... $ 1.00 0.05 -- 0.05 (0.05) -- (0.05)
Year Ended September 30, 1999..... $ 1.00 0.04 -- 0.04 (0.04) -- (0.04)
INVESTMENT GRADE BOND FUND
Year Ended September 30, 2003..... $10.41 0.38 0.03 0.41 (0.41) -- (0.41)
Year Ended September 30, 2002..... $10.18 0.46 0.24 0.70 (0.47) -- (0.47)
Year Ended September 30, 2001..... $ 9.55 0.52 0.63 1.15 (0.52) -- (0.52)
Year Ended September 30, 2000..... $ 9.51 0.53 0.04 0.57 (0.53) -- (0.53)
Year Ended September 30, 1999..... $10.42 0.51 (0.67) (0.16) (0.51) (0.24) (0.75)
GLOBAL FUND
Year Ended September 30, 2003..... $ 7.46 (0.02)(e) 1.64 1.62 -- (0.01) (0.01)
Year Ended September 30, 2002..... $ 9.54 (0.04)(e) (1.91) (1.95) (0.11) (0.02) (0.13)
Year Ended September 30, 2001..... $12.21 0.12 (2.19) (2.07) (0.13) (0.47) (0.60)
Year Ended September 30, 2000..... $11.93 0.17 0.69 0.86 (0.17) (0.41) (0.58)
Year Ended September 30, 1999..... $10.49 0.14 1.51 1.65 (0.14) (0.07) (0.21)
EQUITY FUND
Year Ended September 30, 2003..... $ 4.72 0.01 1.01 1.02 (0.02) -- (0.02)
Year Ended September 30, 2002..... $ 6.06 --(d) (1.21) (1.21) (0.01) (0.12) (0.13)
Year Ended September 30, 2001..... $11.48 (0.01) (2.55) (2.56) (0.01) (2.85) (2.86)
Year Ended September 30, 2000..... $11.99 (0.01) 1.21 1.20 (0.01) (1.70) (1.71)
Year Ended September 30, 1999..... $10.94 0.01 2.55 2.56 (0.02) (1.49) (1.51)
</Table>
- ---------------
(a) Total return excludes sales charge.
(b) During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratio would have been as indicated.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(d) Amount less than $0.005.
(e) Per share net investment loss has been calculated using the daily average
shares method.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
46
<Table>
<Caption>
CHANGE IN NET ASSET
NET ASSET VALUE, NET ASSETS,
VALUE END OF TOTAL END OF PERIOD
PER SHARE PERIOD RETURN (a) (000'S)
--------------------------------------------------
U.S. TREASURY OBLIGATIONS FUND
Year Ended September
30, 2003............ -- $ 1.00 0.62% $ 76,012
Year Ended September
30, 2002............ -- $ 1.00 1.30% $ 76,091
Year Ended September
30, 2001............ -- $ 1.00 4.51% $134,279
Year Ended September
30, 2000............ -- $ 1.00 5.26% $122,888
Year Ended September
30, 1999............ -- $ 1.00 4.26% $ 3,906
PRIME MONEY MARKET FUND
Year Ended September
30, 2003............ -- $ 1.00 0.62% $173,409
Year Ended September
30, 2002............ -- $ 1.00 1.41% $261,865
Year Ended September
30, 2001............ -- $ 1.00 4.57% $302,993
Year Ended September
30, 2000............ -- $ 1.00 5.56% $280,212
Year Ended September
30, 1999............ -- $ 1.00 4.48% $ 29,246
INVESTMENT GRADE BOND FUND
Year Ended September
30, 2003............ -- $10.41 3.99% $ 1,472
Year Ended September
30, 2002............ 0.23 $10.41 7.17% $ 924
Year Ended September
30, 2001............ 0.63 $10.18 12.32% $ 1,139
Year Ended September
30, 2000............ 0.04 $ 9.55 6.20% $ 1,824
Year Ended September
30, 1999............ (0.91) $ 9.51 (1.58)% $ 3,670
GLOBAL FUND
Year Ended September
30, 2003............ 1.61 $ 9.07 21.80% $ 431
Year Ended September
30, 2002............ (2.08) $ 7.46 (20.80)% $ 444
Year Ended September
30, 2001............ (2.67) $ 9.54 (17.70)% $ 962
Year Ended September
30, 2000............ 0.28 $12.21 7.18% $ 2,069
Year Ended September
30, 1999............ 1.44 $11.93 15.81% $ 3,810
EQUITY FUND
Year Ended September
30, 2003............ 1.00 $ 5.72 21.68% $ 670
Year Ended September
30, 2002............ (1.34) $ 4.72 (20.47)% $ 617
Year Ended September
30, 2001............ (5.42) $ 6.06 (27.98)% $ 864
Year Ended September
30, 2000............ (0.51) $11.48 10.04% $ 1,937
Year Ended September
30, 1999............ 1.05 $11.99 24.34% $ 2,604
<Caption>
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------
NET PORTFOLIO
NET INVESTMENT TURNOVER
EXPENSES INCOME (LOSS) EXPENSES (b) RATE (c)
---------------------------------------------------
U.S. TREASURY OBLIGATION
Year Ended September
30, 2003............ 0.80% 0.63% 1.05% N/A
Year Ended September
30, 2002............ 0.75% 1.29% 1.07% N/A
Year Ended September
30, 2001............ 0.76% 4.43% 1.05% N/A
Year Ended September
30, 2000............ 0.70% 5.24% 1.05% N/A
Year Ended September
30, 1999............ 0.70% 4.25% 1.06% N/A
PRIME MONEY MARKET FUND
Year Ended September
30, 2003............ 0.75% 0.71% 1.10% N/A
Year Ended September
30, 2002............ 0.83% 1.41% 1.13% N/A
Year Ended September
30, 2001............ 0.82% 4.42% 1.12% N/A
Year Ended September
30, 2000............ 0.71% 5.54% 1.13% N/A
Year Ended September
30, 1999............ 0.76% 4.42% 1.17% N/A
INVESTMENT GRADE BOND FU
Year Ended September
30, 2003............ 1.20% 3.60% 1.45% 53%
Year Ended September
30, 2002............ 1.24% 4.62% 1.49% 77%
Year Ended September
30, 2001............ 1.16% 5.30% 1.45% 61%
Year Ended September
30, 2000............ 1.09% 5.61% 1.44% 58%
Year Ended September
30, 1999............ 1.10% 5.18% 1.45% 52%
GLOBAL FUND
Year Ended September
30, 2003............ 2.26% (0.24)% 2.51% 87%
Year Ended September
30, 2002............ 2.03% (0.36)% 2.28% 104%
Year Ended September
30, 2001............ 1.67% 1.05% 1.96% 72%
Year Ended September
30, 2000............ 1.49% 1.35% 1.84% 28%
Year Ended September
30, 1999............ 1.53% 1.33% 1.88% 29%
EQUITY FUND
Year Ended September
30, 2003............ 1.35% 0.38% 1.60% 102%
Year Ended September
30, 2002............ 1.38% 0.06% 1.63% 109%
Year Ended September
30, 2001............ 1.30% (0.06)% 1.59% 116%
Year Ended September
30, 2000............ 1.21% (0.05)% 1.56% 84%
Year Ended September
30, 1999............ 1.23% 0.08% 1.58% 46%
</Table>
47
FINANCIAL HIGHLIGHTS
CLASS B SHARES
<Table>
<Caption>
INVESTMENT ACTIVITIES LESS DIVIDENDS FROM
------------------------------------------- ---------------------------------
NET REALIZED
NET ASSET AND UNREALIZED TOTAL
VALUE, NET GAINS FROM NET NET
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME (LOSS) INVESTMENTS ACTIVITIES INCOME GAINS DIVIDENDS
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS FUND
Year Ended September 30, 2003..... $ 1.00 --(d) -- --(d) --(d) -- --(d)
Year Ended September 30, 2002..... $ 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Period Ended September 30,
2001*........................... $ 1.00 0.02 -- 0.02 (0.02) -- (0.02)
PRIME MONEY MARKET FUND
Year Ended September 30, 2003..... $ 1.00 --(d) -- --(d) --(d) -- --(d)
Year Ended September 30, 2002..... $ 1.00 0.01 -- 0.01 (0.01) -- (0.01)
Period Ended September 30,
2001*........................... $ 1.00 0.02 -- 0.02 (0.02) -- (0.02)
INVESTMENT GRADE BOND FUND
Year Ended September 30, 2003..... $10.41 0.31 --(d) 0.31 (0.33) -- (0.33)
Year Ended September 30, 2002..... $10.18 0.39 0.24 0.63 (0.40) -- (0.40)
Period Ended September 30,
2001**.......................... $ 9.90 0.29 0.28 0.57 (0.29) -- (0.29)
GLOBAL FUND
Year Ended September 30, 2003..... $ 7.40 (0.08)(g) 1.62 1.54 -- (0.01) (0.01)
Year Ended September 30, 2002..... $ 9.54 (0.09)(g) (1.90) (1.99) (0.13) (0.02) (0.15)
Period Ended September 30,
2001**.......................... $11.35 -- (1.81) (1.81) -- -- --
EQUITY FUND
Year Ended September 30, 2003..... $ 4.67 (0.02)(g) 1.01 0.99 --(d) -- --(d)
Year Ended September 30, 2002..... $ 6.04 (0.04) (1.21) (1.25) -- (0.12) (0.12)
Period Ended September 30,
2001**.......................... $ 7.93 (0.03) (1.86) (1.89) --(d) -- --(d)
</Table>
- ---------------
* From commencement of operations on February 1, 2001.
** From commencement of operations on February 2, 2001.
(a) Total return excludes sales charge.
(b) During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratio would have been as indicated.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(d) Amount less than $0.005.
(e) Not annualized for periods less than one year.
(f) Annualized for periods less than one year.
(g) Per share net investment income (loss) has been calculated using the daily
average shares method.
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
48
<Table>
<Caption>
CHANGE IN NET ASSET
NET ASSET VALUE, NET ASSETS,
VALUE END OF TOTAL END OF PERIOD
PER SHARE PERIOD RETURN (a)(e) (000'S)
-----------------------------------------------------
U.S. TREASURY OBLIGATIONS FUND
Year Ended
September 30,
2003............. -- $ 1.00 0.16% $ 10
Year Ended
September 30,
2002............. -- $ 1.00 0.54% $ 10
Period Ended
September 30,
2001*............ -- $ 1.00 2.01% $ 10
PRIME MONEY MARKET FUND
Year Ended
September 30,
2003............. -- $ 1.00 0.15% $ 10
Year Ended
September 30,
2002............. -- $ 1.00 0.65% $ 10
Period Ended
September 30,
2001*............ -- $ 1.00 2.03% $ 10
INVESTMENT GRADE BOND FUND
Year Ended
September 30,
2003............. (0.02) $ 10.39 3.01% $ 429
Year Ended
September 30,
2002............. 0.23 $ 10.41 6.37% $ 13
Period Ended
September 30,
2001**........... 0.28 $ 10.18 5.85% $ 13
GLOBAL FUND
Year Ended
September 30,
2003............. 1.53 $ 8.93 20.90% $ 34
Year Ended
September 30,
2002............. (2.14) $ 7.40 (21.27%) $ 4
Period Ended
September 30,
2001**........... (1.81) $ 9.54 (15.95%) $ 1
EQUITY FUND
Year Ended
September 30,
2003............. 0.99 $ 5.66 21.27% $ 184
Year Ended
September 30,
2002............. (1.37) $ 4.67 (21.20%) $ 14
Period Ended
September 30,
2001**........... (1.89) $ 6.04 (23.82%) $ 18
<Caption>
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------
NET
NET INVESTMENT PORTFOLIO
EXPENSES (f) INCOME (LOSS) (f) EXPENSES (b)(f) TURNOVER (c)
-----------------------------------------------------------------
U.S. TREASURY OBLIGAT
Year Ended
September 30,
2003............. 1.26% 0.17% 1.55% N/A
Year Ended
September 30,
2002............. 1.50% 0.54% 1.57% N/A
Period Ended
September 30,
2001*............ 1.55% 3.00% 1.55% N/A
PRIME MONEY MARKET FU
Year Ended
September 30,
2003............. 1.20% 0.26% 1.60% N/A
Year Ended
September 30,
2002............. 1.58% 0.66% 1.63% N/A
Period Ended
September 30,
2001*............ 1.62% 3.03% 1.62% N/A
INVESTMENT GRADE BOND
Year Ended
September 30,
2003............. 1.92% 2.65% 1.92% 53%
Year Ended
September 30,
2002............. 1.99% 3.87% 1.99% 77%
Period Ended
September 30,
2001**........... 1.94% 4.39% 1.62% 61%
GLOBAL FUND
Year Ended
September 30,
2003............. 3.01% (0.99%) 3.01% 87%
Year Ended
September 30,
2002............. 2.78% (1.11%) 2.78% 104%
Period Ended
September 30,
2001**........... 2.54% 0.16% 2.54% 72%
EQUITY FUND
Year Ended
September 30,
2003............. 2.10% (0.37%) 2.10% 102%
Year Ended
September 30,
2002............. 2.13% (0.69%) 2.13% 109%
Period Ended
September 30,
2001**........... 2.09% (0.75%) 2.09% 116%
</Table>
49
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 -- ORGANIZATION
Eureka Funds (the "Trust") was organized as a Massachusetts Business Trust on
April 7, 1997 and is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as a diversified open-end management investment
company. The Trust offers five managed investment portfolios for sale to the
public. The accompanying financial statements and financial highlights are those
of Eureka U.S. Treasury Obligations Fund (the "U.S. Treasury Fund"), Eureka
Prime Money Market Fund (the "Prime Fund"), Eureka Investment Grade Bond Fund
(the "Bond Fund"), Eureka Global Fund (the "Global Fund"), and Eureka Equity
Fund (the "Equity Fund") (each a "Fund", and collectively, the "Funds"). The
Funds are authorized to issue an unlimited number of shares of beneficial
interest with no par value. Each Fund offers three classes of shares: Trust
Shares, Class A Shares and Class B Shares. Each class of shares in the Funds has
identical rights and privileges except with respect to fees paid under
shareholder servicing or distribution plans, voting rights on matters affecting
a single class of shares and the exchange privilege of each class of shares.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. The policies are in
conformity with accounting principles generally accepted in the United States of
America (U.S.). The preparation of financial statements requires management to
make certain estimates and assumptions that effect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses for the period. Actual results could differ from those estimates.
SECURITIES VALUATION: Securities of the U.S. Treasury and Prime Funds (the
"Money Market Funds") are valued utilizing the amortized cost method, which
approximates fair market value. Under the amortized cost method, discount or
premium is amortized on a constant basis to the maturity of the security.
Portfolio securities for which the principal market is a securities exchange
will be valued at the closing sales price on that exchange on the day of
computation, or, if there have been no sales during such day, at their latest
bid quotations. If no such bid price is available, then the securities will be
valued using good faith at their respective fair market values using methods
determined by or under the supervision of the Board of Trustees of the Eureka
Funds; provided however, that before any such securities are purchased for the
Bond Fund, the Global Fund or the Equity Fund, the Trustees of the Eureka Funds
shall be notified and given the opportunity to establish appropriate methods of
determining the fair market value of such securities.
Bonds and other fixed-income securities (other than short-term obligations, but
including listed securities) will be valued at the mean between their latest bid
and asked quotations in such principal market. If no such bid and asked prices
are available, then the securities will be valued in good faith at their fair
market values using methods determined by or under the supervision of the Board
of Trustees of the Eureka Funds. Short-term debt investments having maturities
of 60 days or less are valued at amortized cost, which approximates market
value. Investments in securities of other mutual funds are valued at the
redemption price. Securities for which market quotations are not readily
available are valued at fair value determined in good faith under the general
supervision of the Board of Trustees of the Eureka Funds.
STRIPPED SECURITIES: Stripped securities represent the right to receive future
interest payments (interest only stripped securities) or principal payments
(principal only stripped securities). The value of variable rate interest only
stripped securities varies directly with changes in interest rates, while the
value of fixed rate interest only stripped securities and the value of principal
only stripped securities vary inversely with changes in interest rates.
REPURCHASE AGREEMENTS: The Funds may purchase instruments from financial
institutions, such as banks and broker-dealers, subject to the seller's
agreement to repurchase them at an agreed upon time and price ("repurchase
agreements"). The seller under a repurchase agreement is required to maintain
the value of the securities subject to the agreement at not less than the
repurchase price. Default by the seller would, however, expose the relevant
Funds to possible loss because of adverse market action or delay in connection
with the disposition of the underlying obligations.
FOREIGN CURRENCY TRANSLATION: The Funds, other than the U.S. Treasury Fund, may
invest in certain obligations or securities denominated in foreign currencies.
The accounting records of the Trust are maintained in U.S. dollars. Investment
securities and other assets and liabilities of the Prime Fund, Bond Fund, Global
Fund and Equity Fund denominated in a foreign currency are translated into U.S.
dollars at the current exchange rate. Purchases and sales of securities, income
receipts and expense payments are translated into U.S. dollars at the exchange
rate on the dates of the transactions. The Funds do not isolate that portion of
the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from change in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
50
NOTES TO THE FINANCIAL STATEMENTS -- continued
Realized foreign exchange gains or losses arise from sales and maturities of
securities, sales of foreign currencies, currency exchange fluctuations between
the trade and settlement dates of securities transactions, and the difference
between the amount of assets and liabilities recorded and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities, including investments in securities, resulting from changes in
currency exchange rates.
FORWARD CURRENCY CONTRACTS: The Global Fund may enter into forward foreign
currency exchange contracts in connection with planned purchases or sales of
securities or to hedge the U.S. dollar value of portfolio securities denominated
in a particular currency. The Global Fund may be exposed to risks if the
counter-parties to the contracts are unable to meet the terms of their contracts
and from unanticipated movements in the value of a foreign currency relative to
the U.S. dollar. The forward foreign currency exchange contracts are adjusted by
the daily exchange rate of the underlying currency and any gains or losses are
recorded for financial statement purposes as unrealized gains or losses until
the contract settlement date.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Net realized gains and losses on investments sold
and on foreign currency transactions are recorded on the basis of identified
cost. Interest income is recorded on the accrual basis and includes, where
applicable, the amortization of premiums or accretion of discounts. Dividend
income is recorded on the ex-dividend date. Dividends from foreign securities
are recorded on the ex-dividend date, or as soon as the information is
available.
EXPENSES: Expenses directly attributable to a Fund are charged to the Fund,
while expenses which are attributable to more than one Fund of the Trust are
allocated among the respective Funds based upon relative net assets or another
appropriate basis. Expenses directly attributable to a class of shares are
charged directly to that class.
The investment income and expenses of a Fund (other than class specific
expenses) and realized and unrealized gains and losses on investments of a Fund
are allocated to each class of shares based upon their relative net assets on
the date income is earned, expenses are accrued, or realized and unrealized
gains and losses have been incurred.
ORGANIZATION COSTS: Costs incurred in connection with the organization and
initial registration of the Funds have been deferred and are being amortized
over a sixty-month period, beginning with each Fund's commencement of
operations. In the event that any of the initial shares are redeemed during such
period by any holder thereof, the related Fund will be reimbursed by such holder
for any unamortized organization costs in the proportion as the number of
initial shares being redeemed bears to the number of initial shares outstanding
at the time of redemption.
DIVIDENDS TO SHAREHOLDERS: Dividends from the Money Market Funds' and the Bond
Fund's net investment income, if any, are declared daily and paid monthly.
Dividends from the Global Fund's net investment income, if any, are declared and
paid annually. Dividends from the Equity Fund's net investment income, if any,
are declared and paid monthly. Net realized gains on portfolio securities, if
any, are distributed at least annually by the Funds. However, to the extent net
realized gains can be offset by capital loss carryovers, such gains will not be
distributed. Distributions are recorded by the Funds on the ex-dividend date.
NOTE 3 -- RELATED PARTY TRANSACTIONS
The Trust has entered into an investment advisory agreement (the "Advisory
Agreement") with Eureka Investment Advisors, Inc. (the "Advisor"), a wholly
owned subsidiary of Bank of the West. Under the terms of the Advisory Agreement,
the Advisor is entitled to receive a fee that is calculated daily and paid
monthly based on a percentage of the average net assets of each Fund as follows:
<Table>
<Caption>
FUND ANNUAL RATE
---- -----------
U.S. Treasury Fund.................. 0.20%
Prime Fund.......................... 0.30%
Bond Fund........................... 0.60%
Global Fund......................... 0.90%
Equity Fund......................... 0.75%
</Table>
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"), a
wholly owned subsidiary of The BISYS Group, Inc., serves as the administrator
for the Trust pursuant to an administration agreement (the "Administration
Agreement"). Under the Administration Agreement, BISYS is entitled to a fee
computed at an annual rate, subject to a $75,000 per Fund annual minimum, of
0.20% of the Trust's average daily net assets up to $500 million, 0.185% of the
next $500 million, and 0.175% for amounts in excess of $1 billion.
BISYS serves as the Trust's principal underwriter and distributor (the
"Distributor"). The Funds have adopted a Distribution and Shareholder Services
Plan (the "Plan") with respect to Class A Shares and Class B Shares. This Plan
is in accordance with Rule 12b-1 under the 1940 Act. Under the Plan, the Funds
will pay a monthly fee to the Distributor in an annual rate equal to 0.25% of
the average daily net assets of Class A Shares of each Fund, and an annual rate
equal to 1.00% of the average daily net assets of Class B Shares of each Fund.
The Distributor may voluntarily choose to waive all or a portion of its fee. The
Trust has also entered into a Service Plan with BISYS with respect to Class A
Shares. Pursuant to the Service Plan, the Funds will pay to BISYS a fee at an
annual rate not to
51
NOTES TO THE FINANCIAL STATEMENTS -- continued
exceed 0.25% of the average daily net assets of Class A Shares of each Fund.
BISYS Fund Services, Inc. and BISYS Fund Services Ohio, Inc., also wholly-owned
subsidiaries of The BISYS Group, Inc. serve as fund accountant and transfer and
dividend disbursing agent, respectively, of the Funds. Under the Fund Accounting
Agreement, BISYS Fund Services, Inc. receives a fee from the Trust at the annual
rate of 0.03% of the Trust's average daily net assets up to $500 million, 0.02%
of the Trust's average daily net assets in excess of $500 million up to $1
billion, and 0.01% of the Trust's average daily net assets in excess of $1
billion, subject to a minimum annual fee. Under the Transfer Agency Agreement,
BISYS Fund Services Ohio, Inc. receives a fee from each class of each Fund at
the annual rate of $15,000 in addition to various annual per account fees.
NOTE 4 -- INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding short-term securities) for the year
ended September 30, 2003 were as follows:
<Table>
<Caption>
FUND PURCHASES SALES
---- ------------ ------------
Bond Fund............. $102,081,555 $ 77,079,571
Global Fund........... $ 30,299,331 $ 39,533,237
Equity Fund........... $152,907,473 $163,267,694
</Table>
NOTE 5 -- DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid to shareholders during the fiscal year
ended September 30, 2003 was as follows:
<Table>
<Caption>
DISTRIBUTIONS PAID FROM
------------------------------
NET INVESTMENT NET LONG TERM TOTAL TAXABLE TOTAL DISTRIBUTIONS
FUND INCOME CAPITAL GAINS DISTRIBUTIONS PAID*
---- -------------- ------------- ------------- -------------------
U. S. Treasury Fund.................................. $ 792,564 $ -- $ 792,564 $ 792,564
Prime Fund........................................... 2,418,768 -- 2,418,768 2,418,768
Bond Fund............................................ 6,257,361 -- 6,257,361 6,257,361
Global Fund.......................................... -- 64,987 64,987 64,987
Equity Fund (a)...................................... 956,507 -- 956,507 956,507
</Table>
The tax character of distributions paid to shareholders during the fiscal year
ended September 30, 2002 was as follows:
<Table>
<Caption>
DISTRIBUTIONS PAID FROM
------------------------------
NET INVESTMENT NET LONG TERM TOTAL TAXABLE TOTAL DISTRIBUTIONS
FUND INCOME CAPITAL GAINS DISTRIBUTIONS PAID*
---- -------------- ------------- ------------- -------------------
U. S. Treasury Fund................................... $2,397,263 $ -- $2,397,263 $2,397,263
Prime Fund............................................ 6,784,764 -- 6,784,764 6,784,764
Bond Fund............................................. 6,880,275 -- 6,880,275 6,880,275
Global Fund........................................... 834,802 114,644 949,446 949,446
Equity Fund (a)....................................... 514,203 3,211,878 3,726,081 3,726,081
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets,
because for tax purposes dividends are recognized when actually paid.
52
NOTES TO THE FINANCIAL STATEMENTS -- continued
As of September 30, 2003 the components of accumulated earnings (deficit) on
a tax basis were as follows:
<Table>
<Caption>
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED UNREALIZED
ORDINARY LONG TERM ACCUMULATED DISTRIBUTIONS CAPITAL AND APPRECIATION
FUND INCOME CAPITAL GAINS EARNINGS PAYABLE OTHER LOSSES** (DEPRECIATION)***
---- ------------- ------------- ----------- ------------- -------------- -----------------
U.S. Treasury Fund... $ 31,217 $ -- $ 31,217 $ (30,849) $ (34,397) $ --
Prime Fund........... 216,709 -- 216,709 (83,987) (238,607) --
Bond Fund............ 1,038,195 117,779 1,155,974 (509,412) -- 6,437,443
Global Fund.......... -- -- -- -- (8,217,636) (2,261,377)
Equity Fund (a)...... 101,512 -- 101,512 (106,437) (17,798,346) 4,461,038
<Caption>
TOTAL
ACCUMULATED
EARNINGS
FUND (DEFICIT)
---- ------------
U.S. Treasury Fund... $ (34,029)
Prime Fund........... (150,883)
Bond Fund............ 7,084,005
Global Fund.......... (10,479,013)
Equity Fund (a)...... (13,342,233)
</Table>
** As of September 30, 2003, the following Funds had net capital loss
carryforwards, which are available to offset future realized gains:
<Table>
<Caption>
EXPIRES
------------------------------------------------------
FUND 2007 2008 2009 2010 2011
---- ------ -------- ------- ----------- ----------
U. S. Treasury Fund.............................. $2,256 $ 9,612 $ 33 $ 21,846 $ 330
Prime Fund....................................... -- 21,456 13,445 -- 248,706
Bond Fund........................................ -- -- -- -- --
Global Fund...................................... -- -- -- -- 6,461,234
Equity Fund (a).................................. -- -- -- 17,219,554 578,792
</Table>
*** The differences between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to: tax deferral of losses on wash
sales, the realization for tax purposes of unrealized gains/losses on
investments in passive foreign investment companies, and the return of
capital adjustments from real estate investment trusts.
Net capital losses incurred after October 31, and within the taxable year are
deemed to arise on the first business day of the Funds' next taxable year. The
Funds have incurred and will elect to defer capital losses as follows:
<Table>
<Caption>
FUND CAPITAL LOSSES
---- --------------
U. S. Treasury Fund......................................... $ 320
Global Fund................................................. 1,756,402
</Table>
For corporate shareholders the following percentage of the total ordinary income
distributions paid during the fiscal year ended September 30, 2003 qualify for
the corporate dividends received deduction for the following Fund:
<Table>
<Caption>
FUND NAME PERCENTAGE
--------- ----------
Equity Fund................................................. 100.00%
</Table>
For the fiscal year ended September 30, 2003, dividends paid by the Fund listed
below may be subject to a maximum tax rate of 15% as provided by the Jobs and
Growth Tax Relief Act of 2003. The Fund listed intends to designate the maximum
amount allowable as taxed at a rate of 15%. Complete information will be
reported in conjunction with the 2003 Form 1099-DIV.
<Table>
<Caption>
Global Fund................................................. $ 378,594
Equity Fund (a)............................................. 2,621,034
</Table>
Shareholders should not use the above information to prepare their tax returns.
The information necessary to complete your income tax returns will be included
with your Form 1099-DIV which will be sent to you separately in January 2004.
In addition, the Funds may elect to pass through foreign taxes paid by the Funds
to its shareholders under Code 853 or the Internal Revenue Code. There are no
foreign taxes that may be passed through to the shareholders for the fiscal year
ended September 30, 2003.
- ---------------
(a) Information reflected as of the Fund's tax year end of October 31, 2003.
53
REPORT OF INDEPENDENT AUDITORS
The Shareholders and
Board of Trustees of Eureka Funds
We have audited the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, of Eureka Funds (comprised of Eureka
U.S. Treasury Obligations Fund, Eureka Prime Money Market Fund, Eureka
Investment Grade Bond Fund, Eureka Global Fund, and Eureka Equity Fund) ("the
Funds") as of September 30, 2003, and the related statements of operations for
the year then ended, the statements of changes in net assets for each of the two
years then ended, and the financial highlights for each of the five years or
periods then ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2003, by correspondence
with the custodians and brokers or by other appropriate auditing procedures
where replies from brokers were not received. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Eureka
Funds as of September 30, 2003, the results of their operations for the year
then ended, the changes in their net assets for each of the two years then
ended, and their financial highlights for each of the five years or periods then
ended, in conformity with accounting principles generally accepted in the United
States.
/s/ Ernst & Young LLP
Columbus, Ohio
November 20, 2003
54
EUREKA FUNDS
TRUSTEES AND OFFICERS (Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF
OFFICE WITH NUMBER OF
THE TRUST PORTFOLIOS IN
POSITION(S) AND FUND COMPLEX
HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
NAME, ADDRESS, AND AGE THE TRUST TIME SERVED DURING PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- ---------------------- ----------- ----------- ----------------------- ------------- -------------------
TRUSTEES
Frank Bonetto Chairman Since 2002 From 2002 to present, 5 None
c/o Bank of the West and Trustee Regional Banking Group,
1450 Treat Boulevard Bank of the West; from
Walnut Creek, CA 94597 1997 to 2002, Senior
53 Executive Vice
President, Community
Banking Division, Bank
of the West, Vice
Chairman.
David L. Buell Trustee Since 1997 From 2001 to present, 5 None
c/o Affordable Home Funding, LLC Affordable Home
5743 Corsa Avenue, Suite 207 Funding; from January
Westlake Village, CA 91362 2001 to May 2002,
67 Managing Director, West
Los Angeles Commercial
Banking Center-East
West Bancorp, Inc.;
from February 1998 to
January 2001, Chairman
and CEO, Prime Bank;
from 1996 to 1998,
Owner (50%) Prime, LLC.
Donald H. Livingstone Trustee Since 1997 From 1994 to present, 5 From June 2002 to
c/o BYU Center for Professor, Brigham present, Micrel
Entrepreneurship Young University Corp.; from July
470 Tanner Building ("BYU"). 1998 to present,
P.O. Box 23009 Feather River State
Provo, UT 84602-3009 Bank; from July
61 1998 to present,
California
Independent
Bankcorp.
</Table>
55
EUREKA FUNDS
TRUSTEES AND OFFICERS (Unaudited) -- continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF
OFFICE WITH
THE TRUST
POSITION AND
HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S)
NAME, ADDRESS, AND AGE THE TRUST TIME SERVED DURING PAST FIVE YEARS
- ---------------------- ---------------- ----------- -----------------------------------------------
OFFICERS
Irimga McKay President Since From 1988 to present, employee of
3435 Stelzer Road 08/27/03 BISYS Fund Services.
Columbus, OH 43219
43
Martin R. Dean Vice President Since From 1994 to present, employee of
3435 Stelzer Road 08/28/02 BISYS Fund Services.
Columbus, OH 43219 Previously, Secretary to the Trust,
40 1999 - 2002; Treasurer to the Trust,
1997 - 1998.
Mark Sichley Vice President Since From 1987 to present, employee of
3435 Stelzer Road 08/22/01 BISYS Fund Services.
Columbus, OH 43219
45
Troy Sheets Treasurer Since From April 2002 to present, employee of
3435 Stelzer Road 08/28/02 BISYS Fund Services.
Columbus, OH 43219 Senior Manager, KPMG LLP,
32 1993 - 2002.
Scott M. Zoltowski Secretary Since From November 2001 to present, Senior
60 State Street, Suite 1300 08/28/02 Counsel to BISYS Fund Services;
Boston, MA 02109 Associate, Dechert, 1999-2001;
34 Counsel, ALPS, Inc., 1998-1999.
Alaina V. Metz Assistant Since From June 1995 to present, employee of
3435 Stelzer Road Secretary 08/28/02 BISYS Fund Services.
Columbus, OH 43219
40
</Table>
56
<Table>
INVESTMENT ADVISOR
Eureka Investment Advisors, Inc.
300 South Grand Avenue, 7(th) Floor
Los Angeles, California 90071
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, Ohio 43219
LEGAL COUNSEL
Wilmer, Cutler & Pickering
2445 M Street, N.W.
Washington, D.C. 20037
TRANSFER AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
AUDITORS
Ernst & Young, LLP
1100 Huntington Center
41 South High Street
Columbus, Ohio 43215
CUSTODIAN
The Bank of New York
100 Church Street
New York, NY 10286
</Table>
This material is authorized for distribution to prospective investors only when
accompanied or preceded by a current prospectus. Please read the prospectus
carefully before investing or sending money.
The Eureka Funds are distributed by BISYS Fund Services Limited Partnership.
Eureka Investment Advisors, Inc. is the investment adviser to the Funds and
receives fees for those services.
EUR-0038-903 11-03
(This page intentionally left blank)
ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. If the registrant has not adopted such a code of ethics,
explain why it has not done so.
THE REGISTRANT HAS ADOPTED A CODE OF ETHICS THAT APPLIES TO THE REGISTRANT'S
PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL FINANCIAL OFFICER, PRINCIPAL ACCOUNTING
OFFICER OR CONTROLLER, OR PERSONS PERFORMING SIMILAR FUNCTIONS. THIS CODE OF
ETHICS IS INCLUDED AS EXHIBIT 10 (a)(1).
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has
determined that the registrant either:
(i) Has at least one audit committee financial expert serving
on its audit committee; or
(ii) Does not have an audit committee financial expert serving
on its audit committee.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit
committee financial expert and whether that person is
"independent." In order to be considered "independent" for purposes
of this Item, a member of an audit committee may not, other than in
his or her capacity as a member of the audit committee, the board
of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or
other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-
2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph
(a)(1)(ii) of this Item, it must explain why it does not have an
audit committee financial expert.
3(a)(1) The registrant's board of directors has determined that the registrant
has at least one audit committee financial expert serving on its audit
committee.
3(a)(2) The audit committee financial expert is Donald Livingstone. He is an
independent trustee.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.
(d) Disclose, under the caption All Other Fees, the aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant, other than the services reported in paragraphs (a)
through (c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
2
(f) If greater than 50 percent, disclose the percentage of hours
expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's full-time,
permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.
ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER DECEMBER 15,
2003.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
(a) If the registrant is a listed issuer as defined in Rule 10A-3 under
the Exchange Act (17CFR 240.10A-3), state whether or not the
registrant has a separately-designated standing audit committee
established in accordance with Section 3(a)(58)(A) of the Exchange
Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a
committee, however designated, identify each committee member. If
the entire board of directors is acting as the registrant's audit
committee as specified in Section 3(a)(58)(B) of the Exchange Act
(15 U.S.C. 78c(a)(58)(B)), so state.
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17CFR 240.10A-3(d)) regarding an exemption
from the listing standards for all audit committees.
NOT APPLICABLE.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual
report on this Form N-CSR must, unless it invests exclusively in non-voting
securities, describe the policies and procedures that it uses to determine how
to vote proxies relating to portfolio securities, including the procedures that
the company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
NOT APPLICABLE
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financial officers, or persons performing similar functions, regarding
the effectiveness of the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date
within 90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or
240.15d-15(b)).
IN THE OPINION OF THE PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL
OFFICER, BASED ON THEIR EVALUATION, THE REGISTRANT'S DISCLOSURE CONTROLS AND
PROCEDURES ARE ADEQUATELY DESIGNED AND ARE OPERATING EFFECTIVELY TO ENSURE (i)
THAT MATERIAL INFORMATION RELATING TO THE REGISTRANT, INCLUDING ITS CONSOLIDATED
SUBSIDIARIES, IS MADE KNOWN TO THEM BY OTHERS WITHIN THOSE ENTITIES,
PARTICULARLY DURING THE PERIOD IN WHICH THIS REPORT IS BEING PREPARED; AND (ii)
THAT INFORMATION REQUIRED TO BE DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS
RECORDED, PROCESSED, SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS SPECIFIED
IN THE SECURITIES AND EXCHANGE COMMISSION'S RULES AND FORMS.
3
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that
occurred during the registrant's last fiscal half-year (the registrant's second
fiscal half-year in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect, the registrant's internal control
over financial reporting.
THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL
REPORTING THAT OCCURRED DURING THE REGISTRANT'S MOST RECENT FISCAL HALF-YEAR
(THE REGISTRANT'S SECOND FISCAL HALF-YEAR IN THE CASE OF AN ANNUAL REPORT) THAT
HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO MATERIALLY AFFECT, THE
REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
ITEM 10. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or
number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of
the disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit. THE CODE OF ETHICS
THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS ATTACHED HERETO.
(a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2
under the Act (17 CFR 270.30a-2). CERTIFICATIONS PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002 ARE ATTACHED HERETO.
(b) A separate or combined certification for each principal executive
officer and principal officer of the registrant as required by Rule
30a-2(b) under the Act of 1940. CERTIFICATIONS PURSUANT TO SECTION 906 OF
THE SARBANES-OXLEY ACT OF 2002 ARE ATTACHED HERETO.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Eureka Funds
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By (Signature and Title)* /s/ Troy A. Sheets Troy A. Sheets, Treasurer
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Date December 5, 2003
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Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Irimga McKay Irimga McKay, President
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Date December 5, 2003
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By (Signature and Title)* /s/ Troy A. Sheets Troy A. Sheets, Treasurer
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Date December 5, 2003
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* Print the name and title of each signing officer under his or her signature.
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