<Page>
As filed with the Securities and Exchange Commission on March 08, 2004
File No. 811-03626
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
CITIZENS FUNDS
(Exact Name of Registrant as Specified in Charter)
230 Commerce Way, Portsmouth, New Hampshire 03801
(Address of Principal Executive Offices)
Registrant's Telephone Number, including Area Code: (603) 436-5152
Sophia Collier
Citizens Advisers, Inc.
230 Commerce Way
Portsmouth, NH 03801
(Name and Address of Agent for Service)
June 30, 2004
(Date of fiscal year end)
December 31, 2003
(Date of reporting period)
<Page>
ITEM 1. REPORT TO SHAREHOLDERS.
<Page>
[CITIZENS FUNDS* LOGO]
FUNDAMENTALLY STRONG. SOCIALLY RESPONSIBLE.
SEMI-ANNUAL REPORT 12.31.2003
AND SUPPLEMENTAL COMMENTARY
CITIZENS 300 FUND
CITIZENS CORE GROWTH FUND
CITIZENS EMERGING GROWTH FUND
CITIZENS SMALL CAP CORE GROWTH FUND
CITIZENS VALUE FUND
CITIZENS GLOBAL EQUITY FUND
CITIZENS BALANCED FUND
CITIZENS ULTRA SHORT BOND FUND
CITIZENS INCOME FUND
CITIZENS MONEY MARKET FUND
CITIZENS PRIME MONEY MARKET FUND
<Page>
TABLE OF CONTENTS
<Table>
SUPPLEMENTAL COMMENTARY
LETTER FROM THE PRESIDENT 1
CITIZENS FOCUS: RESPONSIBLE INVESTING + ADVOCACY 2
SEMI-ANNUAL REPORT
MARKET OVERVIEW 4
PORTFOLIO REVIEW 5
PORTFOLIO HOLDINGS 15
STATEMENTS OF ASSETS AND LIABILITIES 34
STATEMENTS OF OPERATIONS 36
STATEMENTS OF CHANGES IN NET ASSETS 38
FINANCIAL HIGHLIGHTS 42
FINANCIAL NOTES 48
</Table>
<Page>
["Supplemental Commentary" on pages 1-3 has not been included because it is
not part of the Semi-annual report.]
<Page>
NNUAL REPORT MARKET OVERVIEW
INVESTOR CONFIDENCE INCREASES
In the final six months of 2003, investors moved from an attitude of hope that
the economy would rebound to growing certainty that it finally had entered a
period of sustained recovery. As confidence grew, stocks posted strong gains,
with small- and mid-cap stocks leading the way. The Russell 2000 Index, the
common benchmark for small-cap investing, appreciated by 24.92% during the six
months, while the Standard & Poor's 500 Index, a measure of large-cap
performance, gained 15.14%. While small-cap stocks significantly outpaced
large-cap stocks during 2003, large caps appeared to gain strength in the final
weeks of the year, possibly reflecting increased interest in larger,
stable-growth stocks with the potential to perform well throughout an economic
recovery.
Reflecting the improving outlooks for growing profits and healthier balance
sheets, corporate bonds continued to outperform U.S. Treasuries and other
high-grade securities. The Merrill Lynch High Yield Master Index rose by 8.52%
during the second half of 2003, while the Lehman Brothers Government Long Bond
Index fell 3.79%. The weakening of the U.S. dollar and the improved outlook for
the global economy also made foreign stocks attractive. Major foreign equity
markets, as measured by the Morgan Stanley Capital International EAFE Index,
climbed by 26.59% during the six months ended December 31, 2003.
MOST ECONOMIC SIGNS WERE POSITIVE
In the final six months of 2003, evidence of a recovery became increasingly
apparent. In November, for example, the U.S. government revised upward its
estimate of the rate of growth of the economy, reporting that gross domestic
product (GDP) had grown at an annualized rate of 8.2% in the third quarter of
the year. That rate reflected continued strength in the consumer sector, as well
as new capital spending by corporations that had previously been postponing
investments on plants and equipment. Corporate profits also were impressive,
with an increasing number of companies meeting or exceeding their earnings
estimates for the third and fourth quarters. After three years of cost-cutting,
many companies had become highly efficient and able to grow their earnings
substantially with virtually any increase in revenues. One concern that
continued to worry some investors, however, was the job situation. But even that
appeared to stabilize and show early signs of improvement. In November the
economy added 57,000 non-farm jobs, a clear improvement over earlier in the year
when the number of jobs was declining. In past economic recoveries, new job
growth tended to be a lagging, rather than a leading, indicator of growth.
GROWTH INVESTMENTS APPEAR ATTRACTIVE
We have an optimistic outlook for investment prospects in 2004. Led by strength
in China, the United States and Europe, the global economy is accelerating. We
believe this is a positive for equity investments and corporate bonds.
Domestically, the stock market appears well positioned to have another positive
year, with large companies potentially in an improved position to outperform
small companies. Smaller companies, the performance leaders during 2003, have
been helped by the Federal Reserve Board's accommodative policy of low interest
rates, which injected needed liquidity into the market. However, we believe that
some small-cap stocks may have risen to valuations that can't be supported by
their fundamentals. Moreover, Fed Chairman Alan Greenspan has indicated that
short-term rates may begin to rise in 2004, perhaps by June. Larger companies,
with more consistent and predictable earnings and stronger fundamentals, may be
better positioned to outperform in the coming months.
Going forward, we believe synchronized economic growth should be the dominant
theme globally. As global demand increases, domestic manufacturers that have
reduced their costs are well positioned to benefit from this global phenomenon,
particularly during a period of weakness in the U.S. dollar.
4
<Page>
PORTFOLIO REVIEW CITIZENS 300 FUND
TOTAL RETURNS (as of 12/31/2003)
<Table>
<Caption>
TICKER 6 1 5 SINCE
SYMBOL MONTHS YEAR YEARS INCEPTION
- -------------------------------------------------------------------------------
Standard shares CFCDX N/A N/A N/A 9.81%
</Table>
The Citizens 300 Fund is off to a good start. It started on August 29, 2003, and
finished the year with a return of 9.81%, versus the benchmark S&P 500 return of
10.99%. We are very pleased to have the Citizens 300 Fund available, as it
offers shareholders an efficient manner in which to invest in companies included
in the Citizens Index -- an index comprised of the stocks of 300 companies
selected to represent the best companies within their respective industries.
As would be expected, given the fund's strategy of investing its assets in
companies based upon their market weight in the Citizens Index, the fund's
performance was dominated by the results of its largest-sized companies within
the Citizens Index versus the largest companies in the benchmark S&P 500 Index.
In this "battle of the giants" strong performance by Pfizer (4.93% of the
portfolio*), Intel (3.77% of the portfolio*), and Cisco (3.01% of the
portfolio*) made the most substantial contribution to the fund's return versus
the S&P 500. The fund's relative performance was hurt from a year-end rally in
socially rejected names such as Exxon Mobil, Altria (formerly known as Philip
Morris), Chevron and General Electric.
Looking forward to 2004, we believe the Citizens 300 Fund is positioned to
benefit from an improving economy, with overweights in the health care,
information technology and consumer discretionary sectors. One company we will
be watching during the upcoming year is Microsoft, our largest holding. During
the second half of 2003, Microsoft (5.33% of the portfolio*) seemed to be stuck
in a trading range between approximately $25 and $29 a share. The company is
highly profitable as a result of its premier position in what looks like a
maturing industry of desktop computing. One major potential catalyst for the
stock could be an eventual announcement of the company's plans for its enormous
cash horde, now totaling over $51 billion dollars.
[SIDENOTE]
GOAL
Long-term capital appreciation
STRATEGY
Invests in companies that comprise the Citizens Index
INCEPTION DATES
Standard shares 08/29/03
IMPORTANT NOTES
Past performance does not guarantee future results. All index and fund
performance figures assume reinvestment of dividends and distributions. Index
results do not include costs of investing, which would lower performance. The
S&P 500 Index is comprised of 500 common stocks chosen for market size,
liquidity and industry group representation. Indexes are unmanaged, and you
cannot invest directly in them. When you sell your fund shares, they may be
worth more or less than what you paid for them. Fee waivers were instituted
during the period to maintain expense limits, without which returns would have
been lower.
*As of 12/31/03. Portfolio holdings are subject to change without notice.
5
<Page>
PORTFOLIO REVIEW CITIZENS CORE GROWTH FUND
AVERAGE ANNUAL RETURNS (as of 12/31/2003)
<Table>
<Caption>
TICKER 6 1 5 SINCE
SYMBOL MONTHS YEAR YEARS INCEPTION
- --------------------------------------------------------------------------------
Standard shares WAIDX 12.35% 23.13% -5.45% 9.46%
Institutional shares WINIX 12.81% 24.00% -4.80% 8.48%
Administrative shares CGADX 12.59% 23.63% N/A -11.63%
</Table>
The six months ended December 31, 2003, was a period of good positive
performance for the fund, with a return of 12.35% for the fund's Standard
shares. Our initial caution at the beginning of the period caused us to slightly
underperform the 14.73% six-month return posted by the fund's benchmark, the
Russell 1000 Growth Index. However, we were pleased with the fund's progress as
the period progressed.
The best performing sector for the fund during the period was telecommunications
services, where Nextel Communications (0.83% of the portfolio*) appreciated by a
remarkable 55%. Nextel's successful "push to talk" wireless service, combined
with its low-cost spectrum acquisition strategy, makes it a uniquely positioned
company within the wireless industry. Individual stocks that made significant
contributions in the period were 3M (2.40% of the portfolio*), the large
industrial company that has successfully executed a multi-year turnaround, and
Flextronics, a contract manufacturer for high-technology firms.
While no sector was negative in absolute terms, the fund's holdings in
information technology, consumer discretionary and health care lagged slightly
on a relative basis versus the benchmark. We were hurt by a poorly timed
purchase of the hardware chain Lowes and by our ownership of Kohl's and
Interactive Corp., both of which declined and were sold during the period.
Looking forward, we believe the fund is well positioned for 2004. We are
continuing our strategy of positioning the portfolio in quality growth
"leaders." We have also included a healthy component of smaller companies that
we consider to be "challengers" and "innovators" within their respective
industries. We are not seeking to take substantial amounts of risk, but to
position the portfolio to participate in the highest growth areas of the
economy. Entering the first quarter of 2004, our largest overweighted industries
versus the benchmark are biotechnology, semiconductors, diversified financial
services and machinery, and our most significant underweights are
pharmaceuticals and industrial conglomerates (largely as a result of not holding
socially rejected General Electric).
[SIDENOTE]
GOAL
Long-term capital appreciation
STRATEGY
Invests mainly in stocks of U.S. large-capitalization companies
INCEPTION DATES
Standard shares 03/03/95
Institutional shares 01/25/96
Administrative shares 02/04/00
IMPORTANT NOTES
Past performance does not guarantee future results. All index and fund
performance figures assume reinvestment of dividends and distributions. Index
results do not include costs of investing, which would lower performance. The
Russell 1000 Growth Index is an index comprised of large-sized U.S.companies.
The index is unmanaged, and you cannot invest directly in it. When you sell your
fund shares, they may be worth more or less than what you paid for them. Fee
waivers were instituted in the past to maintain expense limits, without which
returns would have been lower.
*As of 12/31/03. Portfolio holdings are subject to change without notice.
6
<Page>
CITIZENS EMERGING GROWTH FUND
AVERAGE ANNUAL RETURNS (as of 12/31/2003)
<Table>
<Caption>
TICKER 6 1 5 SINCE
SYMBOL MONTHS YEAR YEARS INCEPTION
- -----------------------------------------------------------------------------
Standard shares WAEGX 16.79% 31.55% 1.00% 11.84%
Institutional shares CEGIX 17.10% 32.43% N/A -5.16%
Administrative shares CGRDX 16.92% 32.01% N/A -12.30%
</Table>
An improving economic picture coupled with the ability for companies to meet or
beat earnings expectations set the stage for a strong rally in the second half
of 2003. Following an impressive run-up during the second quarter of 2003,
mid-cap stocks continued their ascent in the second half of the year, with the
Citizens Emerging Growth Fund, Standard shares earning 16.79% for the period.
The fund's benchmark, the Russell MidCap Growth Index, returned 20.19% for the
same period.
Good stock selection in the industrials sector was the biggest positive
contributor to the fund's performance relative to the benchmark. Leading
performers included Jet Blue Airways and Fastenal (2.16% of the portfolio*), a
manufacturer of commercial building supplies. Career Education, an adult
for-profit education provider, also performed quite well, aided by an improving
economy and continued strong enrollment trends.
Technology was the biggest contributor to the fund's underperformance versus the
index. Concerns about the economic recovery and pickup in business spending
caused a number of our technology stocks to falter, especially during the latter
part of September. Technology stocks that adversely impacted performance
included Hyperion Solutions, a business intelligence software company, and
Globespan Virata, a telecommunications semiconductor chip and software
manufacturer. We feel that the fundamental outlooks for these companies are
sound, and as the recovery gathers steam we expect their results to accelerate
accordingly. Within our health care holdings, another stock that negatively
impacted performance during the period was Medimmune (1.31% of the portfolio*),
a manufacturer of inhalable flu vaccines. The stock performed poorly during the
period, mainly because Wal-Mart announced it was not going to stock the drug in
its stores due to cost issues.
Entering 2004, the portfolio is positioned relatively aggressively, as we
continue to project economic acceleration, improvement in the job outlook, and
increased willingness by businesses to spend on capital equipment, hiring and
new product development. However, high valuations in certain sectors, such as
technology and consumer discretionary, have prompted us to trim some weightings
or exit some positions altogether. A few of the themes we are focused on include
higher business spending, revenue growth, a recovering manufacturing base, a
weaker U.S. dollar, and China's role in the global economy -- as a source of
both demand and potential cost cutting for U.S. manufacturers.
[SIDENOTE]
GOAL
Aggressive growth
STRATEGY
Invests mainly in stocks of young, growing, medium-capitalization companies
INCEPTION DATES
Standard shares 02/08/94
Institutional shares 11/01/99
Administrative shares 02/04/00
IMPORTANT NOTES
Past performance does not guarantee future results. All index and fund
performance figures assume reinvestment of dividends and distributions. Index
results do not include costs of investing, which would lower performance. The
Russell MidCap Growth Index includes those Russell Midcap companies with higher
price-to-book ratios and higher forecasted growth values. The index is
unmanaged, and you cannot invest directly in it. When you sell your fund shares,
they may be worth more or less than what you paid for them. Fee waivers were
instituted in the past to maintain expense limits, without which returns would
have been lower.
Investments in the Citizens Emerging Growth Fund involve unique risks, as small-
and medium-sized companies may have inexperienced management, limited product
line, a difficult time obtaining financing or market share, and their shares may
be more volatile and not traded as frequently or in as large a volume as larger
companies.
*As of 12/31/03. Portfolio holdings are subject to change without notice.
7
<Page>
PORTFOLIO REVIEW CITIZENS SMALL CAP CORE GROWTH FUND
AVERAGE ANNUAL RETURNS (as of 12/31/2003)
<Table>
<Caption>
TICKER 6 1 3 SINCE
SYMBOL MONTHS YEAR YEARS INCEPTION
- --------------------------------------------------------------------------------
Standard shares CSCSX 22.03% 39.21% 4.13 1.46%
</Table>
After an impressive rally during the second quarter of 2003, small-cap stock
prices continued to climb in the second half of the year. Within this favorable
environment, the Citizens Small Cap Core Growth Fund earned 22.03% during the
six-month period ended December 31, 2003, while the fund's benchmark, the
Russell 2000 Growth Index, returned 24.48%.
Health care, led by our holdings in medical devices, was our top-performing
sector versus the benchmark during the period. Financial services was the second
biggest contributor. Within the health care sector, attractive valuations and
companies' continued ability to meet or exceed earnings expectations provided a
favorable backdrop. Therasense (1.04% of the portfolio*), Intermune (2.05% of
the portfolio*), Sangstat Medical Corporation, and Merit Medical Systems (0.53%
of the portfolio*) performed strongly in the second half of 2003. Both
Therasense and Sangstat were acquired during the period. Within financial
services, Jeffries Inc. (1.54% of the portfolio*), a broker-dealer and
investment bank, significantly outperformed versus the benchmark, as a booming
high-yield market and increased trading volume boosted results.
The fund's underperformance was due primarily to some of our technology picks.
In addition, our holdings in the consumer discretionary and industrials sectors
also underperformed. Concerns about the economic recovery and pickup in business
spending caused a number of holdings to underperform, especially during the end
of September. Within technology, we feel that the fundamental outlooks of the
stocks we hold are sound -- in fact, technology was the fund's best performing
sector in the fourth quarter of 2003. As the recovery gathers steam we expect
their results to continue to improve.
The portfolio is positioned relatively aggressively, as we continue to project
economic acceleration, improvement in the job outlook, and increased willingness
by businesses to spend on capital equipment, hiring and new product development.
However, high valuations in certain sectors, such as technology and consumer
discretionary, have prompted us to trim some weightings or exit some positions
altogether. The themes we are focused on include higher business spending,
revenue growth, a recovering manufacturing base, a weaker U.S. dollar, and
China's role in the global economy -- as a source of both demand and potential
cost cutting for U.S. manufacturers.
[SIDENOTE]
GOAL
Capital appreciation
STRATEGY
Invests mainly in stocks of small-capitalization U.S. companies
INCEPTION DATES
Standard shares 12/28/99
IMPORTANT NOTES
Past performance does not guarantee future results. All index and fund
performance figures assume reinvestment of dividends and distributions. Index
results do not include costs of investing, which would lower performance. The
Russell 2000 Growth Index measures the performance of those Russell 2000
companies with higher price-to-book ratios and higher forecasted growth values.
The index is unmanaged, and you cannot invest directly in it. When you sell your
fund shares, they may be worth more or less than what you paid for them. Fee
waivers were instituted in the past to maintain expense limits, without which
returns would have been lower.
Investments in the Citizens Small Cap Core Growth Fund involve unique risks, as
small- and medium-sized companies may have inexperienced management, limited
product line, a difficult time obtaining financing or market share, and their
shares may be more volatile and not traded as frequently or in as large a volume
as larger companies.
*As of 12/31/03. Portfolio holdings are subject to change without notice.
8
<Page>
CITIZENS VALUE FUND
AVERAGE ANNUAL RETURNS (as of 12/31/2003)
<Table>
<Caption>
TICKER 6 1 5 SINCE
SYMBOL MONTHS YEAR YEARS INCEPTION
- --------------------------------------------------------------------------------
Standard shares(1) MYPVX 16.67% 33.51% 2.91% 7.49%
</Table>
The Citizens Value Fund returned 16.67% for the six months ended December 31,
2003, outperforming the S&P 500 Index return of 15.14% and completing a
successful year for the fund overall.
The fund benefited strongly from its "relative value" strategy of selecting
financially strong but out-of-favor companies that are selling below the average
value of their peer groups. Our experience has been that the share prices of
these types of companies rise as the companies make progress and Wall Street
gradually reevaluates their worth. Examples of companies where our relative
value theme worked well during the period include out-of-favor tech giant
Hewlett-Packard (2.91% of the portfolio*) and CVS (1.99% of the portfolio*), the
drugstore chain. Both companies appreciated nicely on the news of obvious
fundamental improvements in both businesses. Another success was FleetBoston
Financial, a Northeast bank selling at a low relative price-to-book value. Bank
of America (2.43% of the portfolio*) proposed to acquire Fleet at a 30% premium.
In December, the trend reversed a bit. Sin stocks and Rust Belt names so often
found in the portfolios of classic value investors had a strong run. Companies
such as Exxon Mobil, tobacco giant Altria (formerly known as Philip Morris),
Boeing and U.S. Steel had impressive appreciation -- none of which we shared.
Despite underperforming the benchmark during the month of December, the fund
outperformed its benchmark during the six-month period.
Looking forward, we will continue our relative value strategy in the coming
year. We are positioned in essentially a sector-neutral manner with overweights
in machinery, health care equipment, computers and peripherals, and food
products. Our most underweighted industries are industrial conglomerates,
pharmaceuticals and software.
[SIDENOTE]
GOAL
Long-term capital appreciation
STRATEGY
Invests mainly in stocks and other equities of U.S. large-capitalization
companies
INCEPTION DATES
Standard shares 06/13/96
IMPORTANT NOTES
Past performance does not guarantee future results. All index and fund
performance figures assume reinvestment of dividends and distributions. Index
results do not include costs of investing, which would lower performance. The
S&P 500 Index is an unmanaged index comprised of 500 common stocks chosen for
market size, liquidity and industry group representation. The index is
unmanaged, and you cannot invest directly in it. When you sell your fund shares,
they may be worth more or less than what you paid for them. Fee waivers were
instituted in the past to maintain expense limits, without which returns would
have been lower.
(1) Includes performance of the fund's predecessor, the Meyers Pride Value Fund,
for the periods prior to September 24, 2001.
*As of 12/31/03. Portfolio holdings are subject to change without notice.
9
<Page>
PORTFOLIO REVIEW CITIZENS GLOBAL EQUITY FUND
AVERAGE ANNUAL RETURNS (as of 12/31/2003)
<Table>
<Caption>
TICKER 6 1 5 SINCE
SYMBOL MONTHS YEAR YEARS INCEPTION
- --------------------------------------------------------------------------------
Standard shares WAGEX 15.83% 21.55% -0.99% 6.64%
Institutional shares CGEIX 16.26% 22.36% N/A -6.39%
Administrative shares CEADX 16.06% 21.93% N/A -15.87%
</Table>
A positive second quarter and a series of aggressive interest rate cuts
worldwide over the course of the summer set the stage for a strong second half
in 2003. Global markets were buoyed further by unexpectedly good corporate
earnings and an uptick in investor confidence. In the second half of 2003, the
Citizens Global Equity Fund, Standard shares returned 15.83%, while the MSCI
World Index, the fund's benchmark, rose 19.79%.
Health care and industrials were the fund's two best contributing sectors during
the period. Industrials are classically defensive, and so their performance was
in a sense unsurprising in the market environment discussed below. The health
care sector's rise disguises wide dispersion in the returns of individual
stocks. Biotech company Invitrogen (0.92% of the portfolio*), up more than 80%
during the period, was by far our best performer, while most international
pharmaceutical multi-nationals lagged the index.
Much of the fund's underperformance relative to the benchmark reflected the
nature of the market rally. High-quality stocks, in which the fund was
predominantly invested, lagged the broader market, as more speculative stocks
jumped dramatically from deeply depressed levels. Many of these lower-quality
issues had been on the brink of serious financial problems. However, with the
benefit of much lower interest rates, they became viable again within a very
short period of time. Within this environment, market participants largely
ignored financially secure blue chip companies -- in a quest for the biggest
gains they could find, regardless of risk. With value stocks similarly
outperforming growth stocks, this created a difficult headwind in terms of the
fund's style, which is focused primarily on large, high-quality growth stocks.
Negative contributors to performance included our underweighting in materials
(largely through a lack of strong eligible candidates) and energy. Our slight
underweight in financials was also slightly detrimental. The area in which we
were most overweight, technology, also modestly detracted from performance,
largely as a result of the wide dispersion among weak and strong performers. For
example, within the software industry, SAP (1.53% of the portfolio*) rose more
than 40%, yet Microsoft (2.27% of the portfolio*), moved up only 6% during the
six-month period.
Despite mixed results during the period, we regard many of our holdings as
poised to do particularly well going into 2004. Given a continuing accommodative
monetary policy, low inflation and improving corporate earnings, we're
optimistic on global equity markets and believe that there is more progress to
be made in the near term.
[SIDENOTE]
GOAL
Capital appreciation
STRATEGY
Invests mainly in stocks and other equities of foreign and U.S. companies
INCEPTION DATES
Standard shares 02/08/94
Institutional shares 11/01/99
Administrative shares 02/04/00
IMPORTANT NOTES
Past performance does not guarantee future results. All index and fund
performance figures assume reinvestment of dividends and distributions. Index
results do not include costs of investing, which would lower performance. The
Morgan Stanley Capital International (MSCI) World Index is a market
capitalization-weighted equity index of over 1,500 stocks traded in 22 world
markets. The index is unmanaged, and you cannot invest directly in it. When you
sell your fund shares, they may be worth more or less than what you paid for
them. Fee waivers were instituted in the past to maintain expense limits,
without which returns would have been lower.
Investments in the Citizens Global Equity Fund involve risks of investing in
foreign markets, including political instability and currency risks, excessive
taxation, different financial and auditing standards, increased market
volatility and other factors.
*As of 12/31/03. Portfolio holdings are subject to change without notice.
10
<Page>
CITIZENS BALANCED FUND
AVERAGE ANNUAL RETURNS (as of 12/31/2003)
<Table>
<Caption>
TICKER 6 1 5 SINCE
SYMBOL MONTHS YEAR YEARS INCEPTION
- --------------------------------------------------------------------------------
Standard shares CFBLX 10.53% 16.39% N/A 15.42%
</Table>
For the six months ended December 31, 2003, the Citizens Balanced Fund had a
total return of 10.53%, outpacing the return of its benchmark index, which
returned 9.03%. The fund's benchmark index is a blended index comprised of 60%
S&P 500 Index and 40% Lehman Brothers U.S. Aggregate Bond Index. The fund's
average asset allocation during the period was 70% to equities and 30% to
fixed-income securities.
Within the equity portion of the portfolio our top performing sectors were
information technology and industrials. Within information technology we
benefited strongly from our holdings in Symantec (0.33% of the portfolio*), the
anti-virus and Internet security company, and Flextronics, a contract
manufacturer of high technology products. Our lowest performing sector during
the period was health care. A top detractor in the health care area was Amgen
(1.20% of the portfolio*), a large biotechnology company that declined by over
6% during the period. We continue to hold Amgen and believe the weakness in the
stock will abate as company earnings and progress become more evident to Wall
Street. At the end of the period, another factor that hindered performance
versus the index was a strong rally by both Exxon Mobil and Altria, two
companies that are socially rejected.
In the fixed-income portion of the portfolio, the most positive contributions to
performance came from our corporate holdings. The most significant gains came
from our lower-quality and high-yield corporate holdings (commonly known as
"junk bonds"). Specifically, Yum! Brands (0.39% of the portfolio*) and XTO
Energy (0.34% of the portfolio*) performed well, as did The Gap (0.40% of the
portfolio*) and Cox Communications (0.62% of the portfolio*). As the economy
continues to show improvement, these high-yield companies have improved their
balance sheets and, in turn, their corporate spreads should tighten versus
Treasuries.
Looking forward, the sector allocations within the equity portion of the
Citizens Balanced Fund will be positioned closer to the market weighting of the
benchmark. This strategy should be an added risk-control benefit. Entering 2004,
we believe the fund is positioned for an improving economy with slight
overweights in heath care, information technology and the consumer discretionary
sectors. Within the fixed-income portion of the portfolio, we believe that
corporate bonds will continue to outperform higher-quality government and agency
issues.
[SIDENOTE]
GOAL
Current income and capital appreciation
STRATEGY
Invests in a blend of stocks, bonds, and money market securities
INCEPTION DATES
Standard shares 12/20/02
IMPORTANT NOTES
Past performance does not guarantee future results. All index and fund
performance figures assume reinvestment of interest, dividends and
distributions. Index results do not include costs of investing, which would
lower performance. The S&P 500 Index is comprised of 500 common stocks chosen
for market size, liquidity and industry group representation. The Lehman
Brothers U.S. Aggregate Bond Index is an index of taxable, investment-grade
fixed-income securities, including government, corporate, mortgage and
asset-backed securities. The indexes are unmanaged, and you cannot invest
directly in them. Interest rate increases can cause the value of bonds to
decrease, meaning that a fund's bond investments may lose value in a rising
interest rate environment. When you sell your fund shares, they may be worth
more or less than what you paid for them. Fee waivers are currently in effect
and have been instituted in the past to maintain expense limits, without which
returns would have been lower.
*As of 12/31/03. Portfolio holdings are subject to change without notice.
11
<Page>
PORTFOLIO REVIEW CITIZENS ULTRA SHORT BOND FUND
AVERAGE ANNUAL RETURNS (as of 12/31/2003)
<Table>
<Caption>
TICKER 6 1 5 SINCE
SYMBOL MONTHS YEAR YEARS INCEPTION
- -----------------------------------------------------------------------------
Standard shares CFSBX 0.07% 1.65% N/A 1.97%
</Table>
The economic picture brightened considerably during the six-month period ended
December 31, 2003, as a growing number of factors pointed toward economic
recovery. Better-than-expected economic data caused a moderate rise in shorter
interest rates, versus a much larger move on the long end of the yield curve.
With the inverse relationship of prices and yields, the prices of fixed-income
securities moved lower as rates moved higher. During the period, the fund
returned 0.07%. The fund's benchmark, the Merrill Lynch 1-Year Treasury Note
Index, was up 0.57% during the same period. The fund's 30-day yield moved from
1.56% on June 30, 2003 to 1.72% as of December 31, 2003.
Our focus on high-quality corporate bonds and asset-backed securities -- which
at the end of the period represented 43% and 23% of the fund's assets,
respectively -- continued to help performance versus the benchmark. While our
exposure to asset-backed and mortgage-backed securities was helpful, our
over-allocation to government agency issues underperformed relative to the
Treasury market.
In managing the fund, we continue to concentrate on net asset value (NAV)
stability and increasing yield when possible. Our strategy during the period was
to keep the fund's duration slightly shorter than the benchmark in anticipation
of higher interest rates. Generally, the shorter a fund's (or bond's) duration,
the less sensitive its share price is to changes in interest rates. The 2-year
Treasury note, on which most short-term corporate bond prices are based, moved
from 1.30% to 1.82% during the period.
Most signs heading into 2004 point to a strong U.S. economy going forward.
Unemployment is improving, retail sales (including automobile sales) are
improving, and the manufacturing sector is on the upswing. That said, some
negatives still exist. Increasing commodity prices and the downward spiral of
the U.S. dollar continue to caution market participants. Sluggish wage growth
also has put pressure on consumer confidence. On the positive side, the growth
rate of the gross domestic product (GDP) was up from 3.3% in the second quarter
to 8.2% in the third quarter of 2003, and and we believe will likely stay over
4% well into 2004. Overall, we believe the economy will continue to improve but
the Federal Reserve will keep interest rates in check for the near term. Going
forward we will continue to emphasize NAV stability, while monitoring interest
rate movements and avoiding lower-quality issues that may negatively impact the
fund.
[SIDENOTE]
GOAL
High level of current income consistent with preservation of capital
STRATEGY
Invests mainly in short-duration investment-grade securities
INCEPTION DATES
Standard shares 11/21/02
IMPORTANT NOTES
Past performance does not guarantee future results. All index and fund
performance figures assume reinvestment of dividends and distributions. Index
results do not include costs of investing, which would lower performance. The
Merrill Lynch 1-Year Treasury Note Index tracks the performance of U.S. Treasury
notes with maturities of approximately one year. The index is produced by
Merrill Lynch, Pierce, Fenner & Smith, Inc. The index is unmanaged, and you
cannot invest directly in it. Interest rate increases can cause the value of
bonds to decrease, meaning that a bond fund investment may lose value in a
rising interest rate environment. When you sell your fund shares, they may be
worth more or less than what you paid for them. Fee waivers are currently in
effect and have been instituted in the past to maintain expense limits, without
which returns would have been lower.
12
<Page>
CITIZENS INCOME FUND
AVERAGE ANNUAL RETURNS (as of 12/31/2003)
<Table>
<Caption>
TICKER 6 1 5 10
SYMBOL MONTHS YEAR YEARS YEARS
- ------------------------------------------------------------------------
Standard shares WAIMX 0.12% 5.80% 3.98% 5.41%
</Table>
The economic picture brightened considerably during the second half of 2003, as
a growing number of factors pointed toward economic recovery. While improving
economic indicators helped set a positive tone to the corporate bond market in
the period, better-than-expected economic data caused a moderate rise in
interest rates. As interest rates move higher, the prices of fixed-income
securities typically move lower, creating a challenging scenario for bond fund
managers.
Citizens Income Fund, Standard shares returned 0.12% during the six-month period
ended December 31, 2003. The benchmark Lehman Brothers U.S. Aggregate Bond Index
gained 0.17% during the same period.
Our corporate holdings continued to outperform versus the benchmark, with the
most significant gains attributed to our lower-quality and high-yield corporate
holdings (commonly known as "junk bonds"), including Domino's Pizza (1.71% of
the portfolio*), Yum! Brands (1.92% of the portfolio*), Nextel Communications
(1.71% of the portfolio*), and The Gap (1.96% of the portfolio*).
The slight underperformance of the fund relative to the benchmark can be
attributed mainly to the impact that rising interest rates had on
intermediate-term securities during this time period. The yield on 5-year
Treasury bonds increased 84 basis points, while the yield on 10-year Treasury
bonds rose 73 basis points. Despite the fund's slight underperformance during
the six-month period, it's worth noting the fund's outperformance over the full
calendar year, where it gained 5.80% versus 4.10% for the benchmark index.
Most signs heading into 2004 point to a strong U.S. economy. Unemployment is
improving, retail sales (including automobile sales) are improving, and the
manufacturing sector is on the upswing. That said, some negatives still exist.
Increasing commodity prices and the downward spiral of the U.S. dollar continue
to caution market participants. Sluggish wage growth also has tempered consumer
confidence. On the positive side, the growth rate of the gross domestic product
(GDP) was up from 3.3% in the second quarter to 8.2% in the third quarter of
2003, and we believe will likely stay over 4% well into 2004. Overall, we
believe that the economy will continue to improve but the Federal Reserve will
keep interest rates in check for the near term.
[SIDENOTE]
GOAL
Current income and monthly dividend payment
STRATEGY
Invests mainly in bonds and mortgage-backed securities
INCEPTION DATES
Standard shares 06/10/92
IMPORTANT NOTES
Past performance does not guarantee future results. All index and fund
performance figures assume reinvestment of interest, dividends and
distributions. Index results do not include costs of investing, which would
lower performance. The Lehman Brothers U.S. Aggregate Bond Index is an index of
taxable, investment-grade fixed-income securities, including government,
corporate, mortgage and asset-backed securities. The index is unmanaged, and you
cannot invest directly in it. Interest rate increases can cause the value of
bonds to decrease, meaning that a bond fund investment may lose value in a
rising interest rate environment. When you sell your fund shares, they may be
worth more or less than what you paid for them. Fee waivers were instituted in
the past to maintain expense limits, without which returns would have been
lower.
*As of 12/31/03. Portfolio holdings are subject to change without notice.
13
<Page>
PORTFOLIO REVIEW CITIZENS MONEY MARKET FUND
CITIZENS PRIME MONEY MARKET FUND
AVERAGE ANNUAL RETURNS (as of 12/31/2003)
<Table>
<Caption>
TICKER 7 DAY 6 1 5 10 SINCE
SYMBOL SIMPLE YIELD MONTHS YEAR YEARS YEARS INCEPTION
- -------------------------------------------------------------------------------------------------------
Money Market Fund
Standard shares WKAXX 0.10% 0.03% 0.26% 2.82% 3.54% N/A
Institutional shares WAIXX 0.39% 0.20% 0.56% 3.13% N/A 3.84%
Prime Money Market Fund N/A 1.08% N/A N/A N/A N/A 0.55%
</Table>
During the report period, the Citizens Money Market Fund invested substantially
all of its assets in the Citizens Prime Money Market Fund, which has the same
investment objective as the Citizens Money Market Fund. The following commentary
is for the Citizens Prime Money Market Fund.
The federal funds rate stayed steady throughout the second half of 2003 at 1.00%
- -- still at its lowest level in 40 years. However, residual effects of a rate
cut earlier in the year contributed to a general decline in money market fund
rates. As time passes, higher-yielding money market securities "roll off" and
are replaced with more recently issued securities, which pay lower yields. For
example, 12 months ago money market funds were able to purchase a 1-year
certificate of deposit (CD) yielding 1.25%. However, in a declining interest
rate environment, when that CD matures, it is difficult to replace it with
another one offering a comparable rate.
With the expectation that longer rates will start to increase as the economy
continues to show improvement, the fund's strategy during the six-month period
was to stay shorter than our peers in terms of maturity. As of December 31,
2003, the weighted average maturity of the portfolio was 24 days.
Most signs heading into 2004 point to a strong U.S. economy going forward.
Unemployment is improving, retail sales (including automobile sales) are
improving, and the manufacturing sector is on the upswing. That said, some
negatives still exist. Increasing commodity prices and the downward spiral of
the U.S. dollar continue to caution market participants. Sluggish wage growth
also has put pressure on consumer confidence. On the positive side, the growth
rate of the gross domestic product (GDP) was up from 3.3% in the second quarter
to 8.2% in the third quarter of 2003, and we believe will likely stay over 4%
well into 2004. Overall, we believe that the economy will continue to improve
but the Federal Reserve will keep interest rates in check for the near term.
Going forward, the fund remains focused on holding high-quality, socially
responsible securities and avoiding companies with credit and headline risk.
[SIDENOTE]
GOAL
Current income consistent with safety and liquidity
STRATEGY
Invests exclusively in money market instruments
INCEPTION DATES
Citizens Money Market Fund
Standard shares 08/30/83
Institutional shares 02/01/96
Citizens Prime Money Market Fund 07/01/03
IMPORTANT NOTES
Past performance does not guarantee future results. When you sell your fund
shares, they may be worth more or less than what you paid for them.
Investments in the Citizens Money Market Fund and Citizens Prime Money Market
Fund are not insured or guaranteed by the FDIC or any other government agency.
Although the funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the funds.
Fee waivers were instituted in the past for the Citizens Money Market Fund and
during the period for the Citizens Prime Money Market Fund to maintain fund
expense limits. Otherwise, returns would have been lower.
14
<Page>
PORTFOLIO HOLDINGS DECEMBER 31, 2003 ($ X 1,000) UNAUDITED
CITIZENS 300 FUND
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
COMMON STOCKS - 99.6%
AIR FREIGHT - 1.8%
FedEx Corp. 200 14
United Parcel Service, Class B 900 67
---------
81
AIRLINES - 0.2%
Southwest Airlines Co. 600 10
APPAREL MANUFACTURERS - 0.2%
Coach, Inc. (a) 300 11
AUTO MANUFACTURING - 0.7%
Ford Motor Co. 1,400 22
PACCAR, Inc. 100 9
---------
31
BANKS - 4.2%
AmSouth Bancorp 500 12
Bank of New York Co., Inc. 600 20
Bank One Corp. 900 42
BB&T Corp. 600 23
Comerica, Inc. 200 11
Fifth Third Bancorp 400 24
Marshall & Ilsley Corp. 300 11
National City Corp. 500 17
Suntrust Banks, Inc. 200 14
Synovus Financial Corp. 500 14
---------
188
BIOTECHNOLOGY - 2.8%
Allergan, Inc. 100 8
Amgen, Inc. (a) 1,000 61
Chiron Corp. (a) 200 11
Forest Laboratories, Inc. (a) 300 19
Genzyme Corp. (a) 200 10
Gilead Sciences, Inc. (a) 200 12
MedImmune, Inc. (a) 200 5
---------
126
BROADCASTING - 1.0%
Clear Channel Communications, Inc. 500 24
Interpublic Group of Companies, Inc. (a) 800 12
Univision Communications, Inc. (a) 200 8
---------
44
CHEMICALS - 0.6%
Air Products & Chemicals, Inc. 200 11
Praxair, Inc. 400 15
---------
26
COMPUTERS - 12.6%
BMC Software, Inc. (a) 200 4
Dell Computer Corp. (a) 2,000 68
First Data Corp. 600 25
Intel Corp. 5,200 167
Intuit, Inc. (a) 200 11
Microsoft Corp. 8,600 236
Network Appliance, Inc. (a) 200 4
SunGard Data Systems, Inc. (a) 500 14
Symantec Corp. (a) 400 14
Veritas Software Corp. (a) 300 11
---------
554
CONSTRUCTION - 0.2%
Masco Corp. 400 11
CONSUMER PRODUCTS - 0.5%
Kimberly-Clark Corp. 400 24
ELECTRICAL EQUIPMENT - 0.9%
American Power Conversion Corp. 100 2
Emerson Electric Co. 300 20
Sanmina Corp. (a) 600 8
W.W. Grainger, Inc. 200 9
---------
39
ELECTRONICS - 7.7%
Adobe Systems, Inc. 200 8
Analog Devices, Inc. 300 14
Applied Materials, Inc. (a) 1,300 29
Applied Micro Circuits Corp. (a) 200 1
Broadcom Corp., Class A (a) 300 10
Cisco Systems, Inc. (a) 5,500 133
Electronic Arts, Inc. (a) 200 10
Intersil Corp., Class A 100 2
JDS Uniphase Corp. (a) 800 3
Johnson Controls, Inc. 100 12
Juniper Networks, Inc. (a) 600 11
Linear Technology Corp. 300 13
Microchip Technology, Inc. 400 13
Novellus Systems, Inc. (a) 300 13
NVIDIA Corp. (a) 100 2
SPX Corp. (a) 200 12
Texas Instruments, Inc. 1,400 41
Xilinx, Inc. (a) 300 12
---------
339
ENERGY & UTILITIES - 4.0%
Allegheny Energy, Inc. (a) 100 1
Anadarko Petroleum Corp. 200 10
Apache Corp. 100 8
Baker Hughes, Inc. 300 10
BJ Services Co. (a) 200 7
Burlington Resources, Inc. 200 11
Calpine Corp. (a) 300 1
ConocoPhillips 500 34
Devon Energy Corp. 200 11
</Table>
See Financial Notes
15
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
ENERGY & UTILITIES (CONT.)
El Paso Corp. 300 2
EOG Resources, Inc. 200 9
KeySpan Corp. 200 7
Kinder Morgan, Inc. 200 13
NiSource, Inc. 300 7
Noble Corp. (a) 200 7
Pepco Holdings, Inc. 100 2
Smith International, Inc. (a) 100 4
The Williams Cos., Inc. 1,100 11
Transocean, Inc. (a) 200 5
Valero Energy Corp. 200 9
XTO Energy, Inc. 400 11
---------
180
ENTERTAINMENT - 2.7%
Comcast Corp., Class A (a) 1,700 56
Viacom, Inc. 1,400 62
---------
118
FINANCIAL - DIVERSIFIED - 12.5%
AMBAC Financial Group, Inc. 200 14
American Express Co. 1,000 48
Citigroup, Inc. 4,100 199
Fannie Mae 800 60
Freddie Mac 500 29
J.P. Morgan Chase & Co. 1,600 59
M & T Bank Corp. 100 10
MBNA Corp. 1,000 25
Mellon Financial Corp. 400 13
MetLife, Inc. 600 20
Moody's Corp. 200 12
Northern Trust Corp. 200 9
SLM Corp. 300 11
State Street Corp. 300 16
Washington Mutual, Inc. 700 28
---------
553
FINANCIAL SERVICES - 0.9%
Charles Schwab Corp. 1,100 13
Golden West Financial Corp. 100 10
Principal Financial Group 300 10
SouthTrust Corp. 200 7
---------
40
FOODS - 6.0%
Bunge Limited 100 3
Campbell Soup Co. 600 16
Coca-Cola Co. 1,900 97
General Mills, Inc. 300 14
H.J. Heinz Co. 300 11
Hershey Foods Corp. 200 15
Kellogg Co. 300 11
McCormick & Co., Inc. 100 3
PepsiCo, Inc. 1,400 65
Sara Lee Corp. 600 13
SUPERVALU, Inc. 100 3
Wm. Wrigley Jr. Co. 300 17
---------
268
HEALTH CARE - 12.7%
AmerisourceBergen Corp. 200 11
Baxter International, Inc. 400 12
Becton, Dickinson & Co. 400 16
Biomet, Inc. 200 7
Boston Scientific Corp. (a) 600 22
Cardinal Health, Inc. 300 18
Guidant Corp. 200 12
Health Management Associates Inc., Class A 100 2
Johnson & Johnson, Inc. 2,300 119
Medtronic, Inc. 1,000 49
Mylan Laboratories, Inc. 150 4
Pfizer, Inc. 6,200 220
Quest Diagnostics, Inc. (a) 100 7
St. Jude Medical, Inc. (a) 100 6
Stryker Corp. 200 17
UnitedHealth Group, Inc. 500 29
WellPoint Health Networks, Inc. (a) 100 10
---------
561
HOME BUILDING - 0.6%
Centex Corp. 100 11
D. R. Horton, Inc. 100 4
Lennar Corp. 100 10
---------
25
HOTELS & LODGING - 0.3%
Marriott International, Inc., Class A 200 9
Starwood Hotels & Resorts Worldwide 100 4
---------
13
HOUSEHOLD PRODUCTS - 0.6%
Clorox Co. 300 15
Newell Rubbermaid, Inc. 500 11
---------
26
INSURANCE - 4.6%
American International Group, Inc. 2,100 138
Anthem, Inc. (a) 100 8
Hartford Financial Services Group, Inc. 200 12
Marsh & McLennan Cos., Inc. 400 19
MBIA, Inc. 200 12
Progressive Corp. 200 17
---------
206
</Table>
See Financial Notes
16
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
MANUFACTURING - 4.0%
3M Co. 600 50
American Standard Cos., Inc. (a) 100 10
Cintas Corp. 100 5
Dana Corp. 100 2
Deere & Co. 200 13
Dover Corp. 100 4
Eaton Corp. 100 11
Ecolab, Inc. 200 5
Harley-Davidson, Inc. 200 10
Illinois Tool Works, Inc. 200 17
Ingersoll-Rand Co. 200 14
Mattel, Inc. 200 4
Nucor Corp. 200 11
Parker Hannifin Corp. 100 6
Sealed Air Corp. (a) 100 5
Smurfit-Stone Container Corp. (a) 600 11
Worthington Industries, Inc. 100 2
---------
180
OFFICE EQUIPMENT & SUPPLIES - 0.4%
Avery Dennison Corp. 200 11
Pitney Bowes, Inc. 200 8
---------
19
PERSONAL CARE - 1.5%
Avon Products, Inc. 200 13
Colgate-Palmolive Co. 400 20
Gillette Co. 800 30
The Estee Lauder Cos., Inc., Class A 100 4
---------
67
PHARMACEUTICALS - 0.6%
McKesson Corp. 400 13
Zimmer Holdings, Inc. (a) 200 14
---------
27
PUBLISHING - 0.9%
McGraw-Hill Cos., Inc. 200 14
New York Times Co. 200 10
Tribune Co. 300 15
---------
39
RAILROADS - 0.1%
Norfolk Southern Corp. 200 5
REAL ESTATE INVESTMENT TRUST - 0.2%
Simon Property Group, Inc. 200 9
RESTAURANTS - 0.5%
Starbucks Corp. (a) 400 14
YUM! Brands, Inc. (a) 300 10
---------
24
RETAIL - 7.4%
AutoZone, Inc. (a) 100 9
Bed Bath & Beyond, Inc. (a) 300 13
Best Buy & Co., Inc. 200 10
Costco Wholesale Corp. (a) 400 15
CVS Corp. 300 11
Dollar General Corp. 400 8
Hasbro, Inc. 100 2
Home Depot, Inc. 1,900 68
InterActiveCorp, Inc. (a) 800 27
Kohl's Corp. (a) 300 13
Kroger Co. (a) 600 11
Lowe's Cos., Inc. 600 33
Staples, Inc. (a) 400 11
Target Corp. 700 27
The Gap, Inc. 700 16
The TJX Cos., Inc. 500 11
Tiffany & Co. 300 14
Walgreen Co. 800 29
---------
328
SERVICES - 2.3%
Apollo Group, Inc., Class A (a) 200 14
ARAMARK Corp. 400 11
Cendant Corp. 900 19
Expeditors International of Washington, Inc. 200 8
Monster Worldwide, Inc. (a) 100 2
Omnicom Group, Inc. 200 17
Pall Corp. 100 3
Paychex, Inc. 300 11
Sysco Corp. 500 19
---------
104
TECHNOLOGY - 0.1%
Rockwell International Corp. 100 4
TELECOMMUNICATIONS - 3.3%
AT&T Wireless Services, Inc. (a) 1,400 11
Nextel Communications, Inc. (a) 900 25
QUALCOMM, Inc. 600 32
Verizon Communications, Inc. 2,200 78
---------
146
---------
TOTAL COMMON STOCKS 4,426
Cost: $4,121
</Table>
17
<Page>
<Table>
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 0.3%
Fifth Third Bank, 0.60%, 01/02/04
(Proceeds at maturity $14, collateralized by
Federal Home Loan Mortgage Corporation security,
5.00%, 11/01/2017)
Cost: $14 14 14
---------
TOTAL INVESTMENTS - 99.9% 4,440
Cost: $4,135 (b)
</Table>
Percentages indicated are based on net assets of $4,446.
(a) Non-income producing security.
(b) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<Table>
Unrealized appreciation $ 323
Unrealized depreciation (18)
---------
Net unrealized appreciation $ 305
</Table>
CITIZENS CORE GROWTH FUND
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
COMMON STOCKS - 100.1%
AIR FREIGHT - 2.1%
FedEx Corp. 79,060 5,337
United Parcel Service, Class B 35,000 2,609
---------
7,946
AIRLINES - 0.9%
Jetblue Airways Corp. (a) 71,000 1,883
Southwest Airlines Co. 102,000 1,646
---------
3,529
BIOTECHNOLOGY - 7.5%
Amgen, Inc. (a) 211,550 13,074
Biogen Idec, Inc. (a) 104,000 3,825
Gilead Sciences, Inc. (a) 125,700 7,308
MedImmune, Inc. (a) 160,500 4,077
---------
28,284
CAPITAL GOODS - 0.5%
Black & Decker Corp. 42,000 2,071
CHEMICALS - 1.0%
Air Products & Chemicals, Inc. 24,000 1,267
Praxair, Inc. 33,000 1,261
Sigma-Aldrich Corp. 22,000 1,258
---------
3,786
COMPUTERS - 15.1%
Dell Computer Corp. (a) 160,500 5,451
Factset Research Systems, Inc. 50,000 1,911
First Data Corp. 93,000 3,821
Intel Corp. 529,200 17,040
International Business Machines Corp. 26,000 2,410
Macromedia, Inc. (a) 105,000 1,873
Maxtor Corp. (a) 168,000 1,865
Microsoft Corp. 495,584 13,648
Oracle Corp. (a) 370,000 4,884
SunGard Data Systems, Inc. (a) 68,000 1,884
Synopsys, Inc. (a) 54,000 1,823
---------
56,610
CONSTRUCTION - 0.7%
Masco Corp. 99,000 2,714
EDUCATION - 0.6%
Corinthian Colleges, Inc. (a) 43,000 2,389
ELECTRONICS - 10.5%
Adobe Systems, Inc. 45,000 1,769
Amkor Technology, Inc. (a) 85,000 1,548
Analog Devices, Inc. 79,000 3,606
Applied Materials, Inc. (a) 150,000 3,368
Cisco Systems, Inc. (a) 530,900 12,895
Electronic Arts, Inc. (a) 68,000 3,249
International Rectifier Corp. (a) 36,000 1,779
Intersil Corp., Class A 107,000 2,659
Johnson Controls, Inc. 17,000 1,974
KLA-Tencor Corp. (a) 33,000 1,936
Maxim Integrated Products, Inc. 38,000 1,892
SPX Corp. (a) 49,000 2,882
---------
39,557
ENERGY & UTILITIES - 1.1%
Apache Corp. 12,000 973
ConocoPhillips 34,200 2,242
Devon Energy Corp. 18,000 1,031
Vulcan Power Co., Class A (a)(b) 40,000 -
---------
4,246
ENTERTAINMENT - 2.3%
Comcast Corp., Class A (a) 70,000 2,301
Viacom, Inc. 143,424 6,365
---------
8,666
FINANCIAL - DIVERSIFIED - 6.1%
American Express Co. 70,945 3,422
Citigroup, Inc. 77,700 3,772
Fannie Mae 40,000 3,002
Legg Mason, Inc. 35,000 2,701
MBNA Corp. 115,000 2,858
Merrill Lynch & Company 32,000 1,877
SLM Corp. 46,000 1,733
Wachovia Corp. 82,000 3,820
---------
23,185
</Table>
See Financial Notes
18
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
FOODS - 4.3%
Bunge Limited 62,000 2,041
Coca-Cola Co. 66,000 3,350
General Mills, Inc. 39,000 1,767
Kellogg Co. 50,000 1,904
PepsiCo, Inc. 110,500 5,151
Wm.Wrigley Jr. Co. 34,000 1,911
---------
16,124
HEALTH CARE - 16.9%
Barr Laboratories, Inc. (a) 25,000 1,924
Boston Scientific Corp. (a) 100,000 3,676
Guidant Corp. 37,000 2,227
Johnson & Johnson, Inc. 147,248 7,607
Medtronic, Inc. 105,338 5,120
Merck & Co., Inc. 108,000 4,990
Mylan Laboratories, Inc. 221,500 5,595
Pfizer, Inc. 431,900 15,260
St. Jude Medical, Inc. (a) 47,000 2,883
UnitedHealth Group, Inc. 141,000 8,203
WellPoint Health Networks, Inc. (a) 62,000 6,013
---------
63,498
INSURANCE - 1.0%
American International Group, Inc. 56,934 3,774
INVESTMENT BANKING & BROKERAGE - 1.1%
E*TRADE Group, Inc. (a) 145,700 1,843
The Goldman Sachs Group, Inc. 25,000 2,468
---------
4,311
MANUFACTURING - 5.9%
3Com Corp. (a) 231,000 1,887
3M Co. 107,600 9,150
Harley-Davidson, Inc. 40,000 1,901
Illinois Tool Works, Inc. 21,500 1,804
Ingersoll-Rand Co. 28,000 1,901
Procter & Gamble Company 57,000 5,693
---------
22,336
OFFICE EQUIPMENT & SUPPLIES - 0.5%
Avid Technology, Inc. (a) 39,000 1,872
PERSONAL CARE - 2.9%
Avon Products, Inc. 57,000 3,847
Colgate-Palmolive Co. 56,200 2,813
Gillette Co. 114,000 4,187
---------
10,847
RESTAURANTS - 0.5%
McDonald's Corp. 82,600 2,051
RETAIL - 11.2%
Bed Bath & Beyond, Inc. (a) 44,000 1,907
Best Buy & Co., Inc. 36,000 1,881
Costco Wholesale Corp. (a) 103,000 3,830
CVS Corp. 107,000 3,864
Dollar General Corp. 92,000 1,931
Dollar Tree Stores, Inc. (a) 62,000 1,864
eBay, Inc. (a) 40,800 2,635
Family Dollar Stores, Inc. 53,000 1,902
Home Depot, Inc. 187,000 6,636
Michaels Stores, Inc. 43,000 1,901
Nordstrom, Inc. 34,000 1,166
Target Corp. 95,000 3,648
The Gap, Inc. 68,200 1,583
Walgreen Co. 93,200 3,391
Whole Foods Market, Inc. (a) 28,000 1,880
Williams Sonoma, Inc. (a) 56,000 1,947
---------
41,966
SERVICES - 4.9%
Cendant Corp. 273,000 6,080
Dun & Bradstreet Corp. (a) 56,000 2,840
Fair Isaac & Co., Inc. 38,000 1,868
Fiserv, Inc. (a) 47,000 1,857
Manpower, Inc. 40,300 1,897
Omnicom Group, Inc. 22,000 1,921
Pall Corp. 72,000 1,932
---------
18,395
TELECOMMUNICATIONS - 2.5%
Avaya, Inc. (a) 148,000 1,915
Nextel Communications, Inc. (a) 113,000 3,171
QUALCOMM, Inc. 80,000 4,314
---------
9,400
---------
TOTAL COMMON STOCKS 377,557
Cost: $317,594
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 0.9%
Fifth Third Bank, 0.60%, 01/02/04
(Proceeds at maturity $3,294,
collateralized by Federal Home Loan
Mortgage Corporation security, 6.50%, 04/01/19)
Cost: $3,294 3,294 3,294
---------
TOTAL INVESTMENTS - 101.0% 380,851
Cost: $320,888 (c)
</Table>
Percentages indicated are based on net assets of $377,177.
(a) Non-income producing security.
(b) Restricted security constituting 0.00% of net assets which may not be
publicly sold without registration under the Securities Act of 1933. This
security is valued at its fair value as determined in good faith under
consistently applied procedures under the general
19
<Page>
supervision of the Trust's Board of Trustees. Additional information on the
security is as follows:
Acquisition date: March 3, 1995
Cost: $300
Value: $0
(c) Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation $ 61,214
Unrealized depreciation (1,251)
---------
Net unrealized appreciation $ 59,963
</Table>
CITIZENS EMERGING GROWTH FUND
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
COMMON STOCKS - 98.9%
BIOTECHNOLOGY - 7.2%
Allergan, Inc. 22,200 1,705
Gilead Sciences, Inc. (a) 61,100 3,552
Intermune, Inc. (a) 50,000 1,158
MedImmune, Inc. (a) 99,600 2,530
Millenium Pharmaceuticals, Inc. (a) 94,465 1,764
Neurocrine Biosciences, Inc. (a) 55,686 3,037
---------
13,746
COMPUTERS - 10.3%
Citrix Systems, Inc. (a) 74,300 1,576
Cognos, Inc. ADR (a) 64,600 1,978
Corning, Inc. (a) 182,000 1,898
Maxtor Corp. (a) 138,200 1,534
Mercury Interactive Corp. (a) 43,612 2,121
Pixar, Inc. (a) 26,660 1,847
Seagate Technology 54,100 1,022
SunGard Data Systems, Inc. (a) 46,700 1,294
Symantec Corp. (a) 72,400 2,510
Symbol Technologies, Inc. 112,581 1,901
Veritas Software Corp. (a) 55,100 2,048
---------
19,729
ELECTRICAL EQUIPMENT - 0.7%
Fairchild Semiconductor Corp. (a) 56,000 1,398
ELECTRONICS - 17.1%
Adobe Systems, Inc. 91,300 3,589
Amkor Technology, Inc. (a) 122,300 2,227
Conexant Systems, Inc. (a) 419,900 2,087
Electronic Arts, Inc. (a) 38,200 1,825
Flextronics International (a) 140,900 2,091
Integrated Circuit Systems, Inc. (a) 55,000 1,567
International Rectifier Corp. (a) 26,300 1,299
Intersil Corp., Class A 53,800 1,337
Jabil Circuit, Inc. (a) 81,000 2,292
Johnson Controls, Inc. 18,700 2,171
Juniper Networks, Inc. (a) 116,100 2,169
KLA-Tencor Corp. (a) 33,500 1,965
Linear Technology Corp. 47,600 2,003
Marvel Technology Group, Ltd. (a) 48,000 1,821
Maxim Integrated Products, Inc. 37,500 1,868
Qlogic Corp. (a) 49,000 2,528
---------
32,839
ENERGY & UTILITIES - 5.0%
Devon Energy Corp. 38,888 2,226
KeySpan Corp. 55,000 2,024
Newfield Exploration Co. (a) 48,600 2,165
Noble Energy, Inc. 39,928 1,774
ONEOK, Inc. 67,800 1,497
---------
9,686
FINANCIAL - DIVERSIFIED - 2.0%
Jefferies Group, Inc. 116,600 3,850
FOODS - 3.5%
Bunge Limited 53,000 1,745
H.J. Heinz Co. 61,300 2,233
Kellogg Co. 72,100 2,745
---------
6,723
HEALTH CARE - 11.5%
Barr Laboratories, Inc. (a) 13,800 1,062
Cytyc Corp. (a) 61,400 845
Health Management Associates, Inc.,
Class A 166,200 3,989
IDEXX Laboratories, Inc. (a) 13,300 616
Laboratory Corporation of America
Holdings (a) 65,200 2,409
Mylan Laboratories, Inc. 40,500 1,023
Quest Diagnostics, Inc. (a) 29,900 2,186
Sierra Health Services, Inc. (a) 39,000 1,071
St. Jude Medical, Inc. (a) 55,900 3,429
Universal Health Services, Inc. 41,900 2,251
WellPoint Health Networks, Inc. (a) 33,200 3,220
---------
22,101
HOTELS & MOTELS - 2.3%
Choice Hotels International, Inc. (a) 55,100 1,942
Fairmont Hotels & Resorts, Inc. 87,500 2,375
---------
4,317
INVESTMENT BANKING & BROKERAGE - 5.1%
Affiliated Managers Group, Inc. (a) 44,180 3,075
Regions Financial Corp. 49,200 1,830
Southwest BanCorp of Texas 48,800 1,896
T-Rowe Price Group, Inc. 36,400 1,726
Wilmington Trust Corp. 34,700 1,249
---------
9,776
</Table>
See Financial Notes
20
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
MANUFACTURING - 3.8%
Donaldson Co., Inc.(b) 15,000 887
Ecolab, Inc. 78,000 2,136
Genuine Parts Co. 37,500 1,245
Leggett & Platt, Inc. 74,500 1,611
Mattel, Inc. 72,100 1,389
---------
7,268
MULTIMEDIA - 3.4%
Cox Radio, Inc., Class A(a) 117,813 2,972
Emmis Communications Corp., Class A(a) 129,600 3,506
---------
6,478
PHARMACEUTICALS - 2.3%
Angiotech Pharmaceuticals, Inc.(a) 10,486 482
McKesson Corp. 56,900 1,830
Medicis Pharmaceutical Corp., Class A 30,400 2,168
---------
4,480
RAILROADS - 1.5%
Norfolk Southern Corp. 121,400 2,871
RESTAURANTS - 3.0%
Brinker International, Inc.(a) 54,700 1,814
Starbucks Corp.(a) 49,000 1,620
YUM! Brands, Inc.(a) 64,800 2,229
---------
5,663
RETAIL - 10.4%
Advance Auto Parts(a) 26,200 2,133
Big Lots, Inc.(a) 55,300 786
Borders Group, Inc.(a) 29,000 636
Dollar General Corp. 68,200 1,432
Fastenal Co. 83,200 4,155
Hasbro, Inc. 64,900 1,381
RadioShack Corp. 65,400 2,006
Staples, Inc.(a) 88,000 2,402
The TJX Cos., Inc. 175,200 3,863
Tiffany & Co. 24,800 1,121
---------
19,915
SERVICES - 9.3%
Apollo Group, Inc., Class A(a) 29,500 2,006
ARAMARK Corp. 90,900 2,492
Corporate Executive Board Co.(a) 61,700 2,880
Dun & Bradstreet Corp.(a) 30,500 1,547
Fiserv, Inc.(a) 66,800 2,639
Getty Images, Inc.(a) 28,800 1,444
IMS Health, Inc. 71,900 1,787
Kroll, Inc.(a) 47,500 1,235
Paychex, Inc. 50,703 1,886
---------
17,916
TELECOMMUNICATIONS - 0.5%
UTStarcom, Inc.(a) 26,600 986
---------
TOTAL COMMON STOCKS 189,742
Cost: $162,523
</Table>
<Table>
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 1.6%
Fifth Third Bank, 0.60%, 01/02/04
(Proceeds at maturity $3,064,
collateralized by Federal National Mortgage
Association security, 7.00%, 10/01/27)
Cost: $3,064 3,064 3,064
---------
TOTAL INVESTMENTS - 100.5% 192,806
Cost: $165,587
</Table>
Percentages indicated are based on net assets of $191,838.
(a) Non-income producing security.
(b) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<Table>
Unrealized appreciation $ 29,254
Unrealized depreciation (2,035)
---------
Net unrealized appreciation $ 27,219
</Table>
ADR - American Depositary Receipt
CITIZENS SMALL CAP CORE GROWTH FUND
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
COMMON STOCKS - 99.4%
BANKS - 4.0%
Cascade Financial Corp. 7,750 150
Franklin Bank Corp.(a) 16,458 313
Prosperity Bancshares, Inc. 5,464 123
Seacoast Financial Services Corp. 4,200 115
UCBH Holdings, Inc. 7,960 310
---------
1,011
BIOTECHNOLOGY - 5.2%
Aphton Corp.(a) 40,300 242
Intermune, Inc.(a) 22,650 525
Neurocrine Biosciences, Inc.(a) 10,394 566
---------
1,333
COMMUNICATIONS EQUIPMENT - 2.2%
Foundry Networks, Inc.(a) 13,000 356
Standard Microsystems Corp.(a) 8,350 211
---------
567
COMPUTERS - 18.6%
Aspen Technology, Inc.(a) 44,200 453
</Table>
21
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
COMPUTERS (CONT.)
Brooks Automation, Inc.(a) 12,050 291
Captiva Software Corp.(a) 40,900 518
Computer Horizons Corp.(a) 126,700 498
Digital Insight Corp.(a) 16,900 421
Digital River, Inc.(a) 15,500 343
Embarcadero Technologies, Inc.(a) 19,730 315
F5 Networks, Inc.(a) 15,150 380
FileNET Corp.(a) 9,300 252
Hyperion Solutions Corp.(a) 7,500 226
Magma Design Automation, Inc.(a) 5,820 136
Maxtor Corp.(a) 12,030 134
Quest Software, Inc.(a) 26,300 373
Red Hat, Inc.(a) 7,100 133
Synaptics, Inc.(a) 18,350 275
---------
4,748
EDUCATIONAL SERVICES - 1.1%
Bright Horizons Family Solutions, Inc.(a) 2,950 124
Strayer Education, Inc. 1,350 147
---------
271
ELECTRICAL EQUIPMENT - 3.0%
Benchmark Electronics, Inc.(a) 12,550 437
Trident Microsystems, Inc.(a) 18,900 329
---------
766
ELECTRONICS - 6.6%
Asyst Technologies, Inc.(a) 16,200 281
Cabot Microelectronics Corp.(a) 3,600 176
Conexant Systems, Inc.(a) 50,600 251
OmniVision Technologies, Inc.(a) 4,000 221
Photon Dynamics, Inc.(a) 11,200 452
Vitesse Semiconductor Corp.(a) 51,700 303
---------
1,684
ENERGY & UTILITIES - 3.3%
Cambior, Inc.(a) 30,000 93
Hecla Mining Co.(a) 7,400 61
Newfield Exploration Co.(a) 6,540 292
Precision Drilling Corp.(a) 6,290 275
Stone Energy Corp.(a) 3,000 127
---------
848
FINANCIAL - DIVERSIFIED - 3.8%
Financial Federal Corp.(a) 18,640 569
Jefferies Group, Inc. 11,930 394
---------
963
HEALTH CARE - 9.4%
Accredo Health, Inc.(a) 4,200 133
American Medical Systems Holdings, Inc.(a) 12,050 263
Amerigroup Corp.(a) 4,100 175
Cytyc Corp.(a) 18,100 249
LifePoint Hospitals, Inc.(a) 8,100 239
Merit Medical Systems, Inc.(a) 6,128 136
Sierra Health Services, Inc.(a) 19,900 546
Therasense, Inc.(a) 13,070 265
Thoratec Corp.(a) 29,180 380
---------
2,386
HOTELS & MOTELS - 1.7%
Choice Hotels International, Inc.(a) 12,000 423
INTERNET SOFTWARE & SERVICES - 0.6%
Ask Jeeves, Inc.(a) 8,900 161
INVESTMENT BANKING & BROKERAGE - 4.4%
Affiliated Managers Group, Inc.(a) 7,257 505
Piper Jaffray Companies, Inc.(a) 3,100 129
Southwest BanCorp of Texas 12,650 491
---------
1,125
MANUFACTURING - 9.4%
Applied Films Corp.(a) 16,740 552
CLARCOR, Inc. 1,650 73
Georgia Gulf Corp. 2,100 61
Kennametal, Inc. 12,200 485
Oshkosh Truck Corp. 9,800 499
Roper Industries, Inc. 8,700 429
Select Comfort Corp.(a) 2,500 62
The Manitowoc Co., Inc. 8,100 253
---------
2,414
MULTIMEDIA - 3.2%
Emmis Communications Corp., Class A(a) 18,850 510
Spanish Broadcasting Systems, Inc.(a) 29,400 309
---------
819
PHARMACEUTICALS - 6.0%
Advancis Pharmaceutical Corp.(a) 30,200 227
Angiotech Pharmaceuticals, Inc.(a) 9,941 456
Genta, Inc.(a) 18,300 191
Ilex Oncology, Inc.(a) 10,400 221
Medicis Pharmaceutical Corp., Class A 3,600 257
Nabi Biopharmaceuticals(a) 13,500 172
---------
1,524
RESTAURANTS - 0.4%
CEC Entertainment, Inc.(a) 2,350 111
RETAIL - 4.0%
Big 5 Sporting Goods Corp.(a) 23,800 499
Fastenal Co. 2,610 130
PETCO Animal Supplies, Inc.(a) 4,000 122
Tommy Hilfiger Corp.(a) 17,900 265
---------
1,016
SERVICES - 8.0%
Corporate Executive Board Co.(a) 6,030 281
Getty Images, Inc.(a) 7,500 376
Heidrick & Struggles International, Inc.(a) 3,600 78
</Table>
See Financial Notes
22
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
Kroll, Inc.(a) 10,600 276
Labor Ready, Inc.(a) 42,460 557
Roto Rooter, Inc. 10,000 461
---------
2,029
TELECOMMUNICATIONS - 1.4%
Tekelec(a) 22,390 348
TRANSPORTATION - 2.0%
Landstar System, Inc.(a) 13,100 498
WASTE MANAGEMENT - 1.1%
Waste Connections, Inc.(a) 7,680 290
---------
TOTAL COMMON STOCKS 25,335
Cost: $22,845
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 0.9%
Fifth Third Bank, Inc., 0.60%, 01/02/04
(Proceeds at maturity $239,
collateralized by Federal Home Loan Mortgage
Corporation security, 6.50%, 05/01/31)
Cost: $239 239 239
---------
TOTAL INVESTMENTS - 100.3% 25,574
Cost: $23,084(b)
</Table>
Percentages indicated are based on net assets of $25,499.
(a) Non-income producing security.
(b) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<Table>
Unrealized appreciation $ 3,015
Unrealized depreciation (525)
---------
Net unrealized appreciation $ 2,490
</Table>
CITIZENS VALUE FUND
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
COMMON STOCKS - 99.6%
AIR FREIGHT - 1.6%
FedEx Corp. 4,860 328
APPAREL MANUFACTURERS - 0.5%
V.F. Corp. 2,400 104
AUTO MANUFACTURING - 0.5%
PACCAR, Inc. 1,200 102
BANKS - 2.7%
Bank of America Corp. 6,200 498
KeyCorp 1,800 53
---------
551
BIOTECHNOLOGY - 1.0%
Amgen, Inc.(a) 3,300 204
CHEMICALS - 2.1%
Engelhard Corp. 3,800 114
Praxair, Inc. 5,840 223
Sigma-Aldrich Corp. 1,800 103
---------
440
COMMUNICATIONS EQUIPMENT - 0.5%
Scientific-Atlanta, Inc. 4,000 109
COMPUTERS - 10.8%
Affiliated Computer Services, Inc.(a) 2,600 142
Hewlett-Packard Co. 26,030 598
Intel Corp. 16,680 537
International Business Machines Corp. 4,975 461
Microsoft Corp. 17,100 471
---------
2,209
CONSTRUCTION - 2.3%
Lafarge North America, Inc. 3,200 130
Masco Corp. 12,400 340
---------
470
CONSUMER PRODUCTS - 2.2%
Kimberly-Clark Corp. 7,720 456
ELECTRICAL EQUIPMENT - 1.4%
Emerson Electric Co. 4,600 298
ELECTRONICS - 4.5%
Cisco Systems, Inc.(a) 10,500 254
International Rectifier Corp.(a) 2,700 133
Johnson Controls, Inc. 1,400 163
National Semiconductor Corp.(a) 3,900 154
SPX Corp.(a) 3,720 219
---------
923
ENERGY & UTILITIES - 5.9%
Anadarko Petroleum Corp. 3,600 184
Apache Corp. 2,500 203
ConocoPhillips 7,790 510
KeySpan Corp. 2,700 99
NiSource, Inc. 4,700 103
Pepco Holdings, Inc. 5,300 104
---------
1,203
ENTERTAINMENT - 2.0%
Viacom, Inc. 9,250 411
FINANCIAL - DIVERSIFIED - 14.9%
Capital One Financial Corp. 3,040 186
Citigroup, Inc. 10,100 489
First Tennessee National Corp. 2,200 97
Freddie Mac 7,550 440
</Table>
23
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
FINANCIAL - DIVERSIFIED (CONT.)
J.P. Morgan Chase & Co. 8,400 309
Lehman Brothers Holdings, Inc. 3,430 265
MBNA Corp. 17,000 422
MetLife, Inc. 7,000 236
The Bear Stearns Cos., Inc. 2,000 160
Wachovia Corp. 9,900 461
---------
3,065
FOODS - 5.1%
Bunge Limited 5,700 188
General Mills, Inc. 2,100 95
PepsiCo, Inc. 8,200 382
Sara Lee Corp. 17,080 371
---------
1,036
HEALTH CARE - 7.9%
Baxter International, Inc. 15,040 460
Beckman Coulter, Inc. 2,300 117
Becton, Dickinson & Co. 4,800 197
C.R. Bard, Inc. 1,450 118
Health Net, Inc.(a) 4,000 131
Laboratory Corporation of America
Holdings(a) 4,200 155
Merck & Co., Inc. 9,750 450
---------
1,628
INSURANCE - 5.1%
Anthem, Inc.(a) 3,400 255
Fidelity National Financial Corp. 2,650 103
Hartford Financial Services Group, Inc. 4,300 254
St. Paul Companies, Inc. 4,500 178
The Allstate Corp. 6,150 265
---------
1,055
MANUFACTURING - 4.5%
Bausch & Lomb, Inc. 2,000 104
Dana Corp. 5,800 106
Deere & Co. 3,600 234
Eaton Corp. 1,110 120
Ingersoll-Rand Co. 3,700 252
Pactiv Corp.(a) 4,200 100
---------
916
PHARMACEUTICALS - 3.0%
Bristol-Myers Squibb Co. 14,500 415
McKesson Corp. 6,200 199
---------
614
PUBLISHING - 1.5%
Gannett Co., Inc. 3,400 303
RESTAURANTS - 2.5%
Brinker International, Inc.(a) 3,100 103
McDonald's Corp. 16,650 413
---------
516
RETAIL - 6.7%
Costco Wholesale Corp.(a) 5,500 204
CVS Corp. 11,300 408
Federated Department Stores, Inc. 2,200 104
Kroger Co.(a) 14,080 261
Office Depot, Inc.(a) 5,800 97
Target Corp. 8,000 307
---------
1,381
SERVICES - 4.4%
Cendant Corp. 12,380 277
Dun & Bradstreet Corp.(a) 2,000 101
Omnicom Group, Inc. 2,300 201
Pall Corp. 3,700 99
Unisys Corp.(a) 14,900 221
---------
899
TECHNOLOGY - 0.5%
Storage Technology Corp.(a) 3,600 93
TELECOMMUNICATIONS - 5.5%
Amdocs, Ltd.(a) 5,200 117
AT&T Corp. 7,400 150
BellSouth Corp. 8,460 239
QUALCOMM, Inc. 5,860 317
Verizon Communications, Inc. 8,500 298
---------
1,121
---------
TOTAL COMMON STOCKS 20,435
Cost: $17,981
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 0.6%
Fifth Third Bank, 0.60%, 01/02/04
(Proceeds at maturity $124,
collateralized by Federal Home Loan Mortgage
Corporation security, 7.50%, 11/01/29)
Cost: $124 124 124
---------
TOTAL INVESTMENTS - 100.2% 20,559
Cost: $18,105(b)
</Table>
Percentages indicated are based on net assets of $20,513.
(a) Non-income producing security.
(b) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<Table>
Unrealized appreciation $ 2,539
Unrealized depreciation (85)
---------
Net unrealized appreciation $ 2,454
</Table>
See Financial Notes
24
<Page>
CITIZENS GLOBAL EQUITY FUND
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
COMMON STOCKS- 98.9%
AUTOMOBILE MANUFACTURING - 2.8%
Honda Motor Co., Ltd. 38,200 1,697
Toyota Motor Corp. 2,800 95
Volkswagen AG 29,500 1,650
---------
3,442
BANKS - 2.3%
Bank of New York Co., Inc. 36,300 1,202
Barclays plc 8,511 76
Royal Bank of Scotland Group plc 53,162 1,567
---------
2,845
BIOTECHNOLOGY - 4.9%
Amgen, Inc.(a) 19,500 1,205
Applied Biosystems Group 57,800 1,197
Invitrogen Corp.(a) 15,900 1,113
Roche Holding AG 24,151 2,436
---------
5,951
BROADCASTING - 6.1%
British Sky Broadcasting Group plc(a) 198,283 2,495
Clear Channel Communications, Inc. 39,400 1,845
Cox Communications, Inc., Class A(a) 50,900 1,754
Univision Communications, Inc.(a) 33,000 1,310
---------
7,404
CHEMICALS - 2.2%
Air Products & Chemical, Inc. 26,000 1,373
Shin-Etsu Chemical Co. 33,200 1,357
---------
2,730
COMPUTERS - 9.5%
EMC Corp.(a) 94,000 1,214
Hewlett Packard Company 54,000 1,240
Intel Corp. 55,000 1,771
International Business Machines Corp. 19,000 1,761
Microsoft Corp. 100,000 2,755
Oracle Corp.(a) 76,000 1,003
SAP AG 11,000 1,856
---------
11,600
ELECTRICAL EQUIPMENT - 7.0%
Analog Devices, Inc. 29,900 1,365
ASML Holding NV(a) 4,914 97
Emerson Electric Co. 33,100 2,143
Flextronics International Ltd.(a) 103,770 1,540
Taiwan Semiconductor Manufacturing
Co. Ltd. ADR(a) 117,034 1,198
Teradyne, Inc.(a) 85,000 2,164
---------
8,507
ELECTRONICS - 1.6%
Cisco Systems, Inc.(a) 80,400 1,953
ENERGY & UTILITIES - 4.0%
BP Amoco plc 279,007 2,263
EOG Resources, Inc. 25,000 1,154
Noble Corp.(a) 36,000 1,288
Scottish Power plc 17,272 115
---------
4,820
FINANCIAL - DIVERSIFIED - 11.8%
American Express Co. 35,000 1,688
Citigroup, Inc. 83,400 4,049
HBOS plc 69,628 902
HSBC Holdings plc 157,306 2,472
UBS AG 49,463 3,388
Wells Fargo & Co. 30,300 1,784
---------
14,283
FOOD & BEVERAGES - 3.2%
Compass Group plc 177,388 1,207
Nestle SA 5,678 1,418
The Coca-Cola Co. 25,000 1,269
---------
3,894
HEALTH CARE - 8.4%
Cardinal Health, Inc. 14,000 856
Eli Lilly & Co. 10,000 703
GlaxoSmithKline ADR 2,546 119
GlaxoSmithKline plc 104,405 2,393
Medtronic, Inc. 41,500 2,017
Novartis AG 2,886 131
Pfizer, Inc. 67,400 2,381
Sanofi-Synthelabo SA 20,733 1,561
---------
10,161
HOTELS & MOTELS - 1.0%
Hilton Hotels Corp. 69,000 1,182
INSURANCE - 6.8%
American International Group, Inc. 29,000 1,922
AXA 75,128 1,608
AXA ADR 4,123 89
ING Groep NV 91,569 2,136
Swiss Re 441 30
Zurich Financial Services AG 17,455 2,511
---------
8,296
INVESTMENT BANKING & BROKERAGE - 1.8%
The Goldman Sachs Group, Inc. 22,500 2,221
MANUFACTURING - 6.2%
Assa Abloy AB, Class B 69,600 827
CRH plc 2,331 48
CRH plc 81,167 1,667
Ingersoll-Rand Co., Class A 36,300 2,464
Komatsu, Ltd. 400,000 2,538
---------
7,544
</Table>
25
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
OFFICE EQUIPMENT & SUPPLIES - 1.5%
Canon, Inc. 37,000 1,723
Canon, Inc. ADR 1,656 79
---------
1,802
PERSONAL CARE - 2.9%
Gillette Co. 48,000 1,763
L'Oreal SA 20,951 1,718
---------
3,481
PHARMACEUTICALS - 1.0%
Gilead Sciences, Inc.(a) 21,500 1,250
RETAIL - 3.4%
Carrefour SA 336 18
Li & Fung, Ltd. 742,000 1,271
Target Corp. 36,000 1,383
Tesco plc 11,951 55
The TJX Cos., Inc. 61,100 1,347
---------
4,074
SERVICES - 2.3%
Omnicom Group, Inc. 20,000 1,746
Sysco Corp. 28,200 1,050
---------
2,796
TELECOMMUNICATIONS - 8.2%
Nippon Telegraph & Telephone Corp. 6 29
Nokia Oyj 151,450 2,619
NTT DoCoMo, Inc. 864 1,959
Telefonica SA 101,564 1,491
Telefonica SA ADR 1,081 48
Vodafone Group plc 1,497,183 3,712
Vodafone Group plc ADR 6,305 158
---------
10,016
---------
TOTAL COMMON STOCKS 120,252
Cost: $106,596
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 1.1%
Fifth Third Bank, 0.60%, 01/02/04
(Proceeds at maturity $1,336,
collateralized by Federal National
Mortgage Association security, 5.00%, 11/01/17)
Cost: $1,336 1,336 1,336
---------
TOTAL INVESTMENTS - 100.0% 121,588
Cost: $107,932(b)
</Table>
Percentages indicated are based on net assets of $121,576.
(a) Non-income producing security.
(b) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<Table>
Unrealized appreciation $ 15,489
Unrealized depreciation (1,833)
---------
Net unrealized appreciation $ 13,656
</Table>
ADR - American Depositary Receipt
At December 31, 2003, the fund's open forward currency contracts were as
follows:
<Table>
<Caption>
CONTRACT CONTRACT CURRENT
AMOUNT VALUE VALUE UNREALIZED
DELIVERY (LOCAL (U.S. (U.S. APPRECIATION/
DATE CURRENCY) DOLLAR) DOLLAR) DEPRECIATION
-------------------------------------------------------------------------------
LONG CONTRACTS
Euro 01/02/04 EURO 63,667 $ 78,878 $ 80,307 $ 1,429
SHORT CONTRACTS
Euro 01/02/04 EURO 63,667 $ 78,878 $ 80,307 $ (1,429)
</Table>
The fund's portfolio holdings as of December 31, 2003, were distributed among
the following countries:
<Table>
<Caption>
PERCENTAGE OF NET ASSETS
------------------------------
SHORT TERM
EQUITY & OTHER TOTAL
------------------------------
Bermuda 2.0% 2.0%
Finland 2.2% 2.2%
France 4.1% 4.1%
Germany 2.9% 2.9%
Hong Kong 1.0% 1.0%
Ireland 1.4% 1.4%
Japan 7.8% 7.8%
Netherlands 1.8% 1.8%
Singapore 1.3% 1.3%
Spain 1.3% 1.3%
Sweden 0.7% 0.7%
Switzerland 8.2% 8.2%
Taiwan 1.0% 1.0%
United Kingdom 14.4% 14.4%
United States 48.8% 1.1% 49.9%
------------------------------
98.9% 1.1% 100.0%
</Table>
CITIZENS BALANCED FUND
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
COMMON STOCKS - 71.0%
AIR FREIGHT - 1.4%
FedEx Corp. 100 7
United Parcel Service, Class B 200 15
---------
22
</Table>
26
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
AIRLINES - 0.4%
Southwest Airlines Co. 400 6
AUTO MANUFACTURING - 0.7%
Ford Motor Co. 700 11
BANKS - 3.6%
Bank of New York Co., Inc. 300 10
Bank One Corp. 200 9
BB&T Corp. 200 8
Fifth Third Bancorp 200 12
National City Corp. 300 10
Suntrust Banks, Inc. 100 7
---------
56
BIOTECHNOLOGY - 2.6%
Amgen, Inc.(a) 300 19
Applera Corp.- Applied Biosystems
Group 100 2
Forest Laboratories, Inc.(a) 200 12
Gilead Sciences, Inc.(a) 131 8
---------
41
BROADCASTING - 0.8%
Clear Channel Communications, Inc. 184 9
Univision Communications, Inc.(a) 100 4
---------
13
CHEMICALS - 0.8%
Air Products & Chemicals, Inc. 100 5
Praxair, Inc. 200 8
---------
13
COMPUTERS - 9.1%
Dell, Inc.(a) 484 16
First Data Corp. 300 12
Intel Corp. 1,253 41
Microsoft Corp. 2,141 60
Symantec Corp.(a) 148 5
Veritas Software Corp.(a) 200 7
---------
141
CONSTRUCTION - 0.5%
Masco Corp. 300 8
CONSUMER PRODUCTS - 0.8%
Kimberly-Clark Corp. 200 12
ELECTRICAL EQUIPMENT - 0.8%
Emerson Electric Co. 200 13
ELECTRONICS - 4.4%
Analog Devices, Inc. 139 6
Applied Materials, Inc.(a) 470 11
Cisco Systems, Inc.(a) 1,350 32
Qlogic Corp.(a) 50 3
Texas Instruments, Inc. 300 9
Xilinx, Inc.(a) 200 8
---------
69
ENERGY & UTILITIES - 2.9%
Anadarko Petroleum Corp. 100 5
Apache Corp. 70 6
Baker Hughes, Inc. 163 5
ConocoPhillips 151 10
Devon Energy Corp. 100 6
KeySpan Corp. 200 7
Kinder Morgan, Inc. 100 6
---------
45
ENTERTAINMENT - 1.8%
Comcast Corp., Class A(a) 400 13
Viacom, Inc. 329 15
---------
28
FINANCIAL - DIVERSIFIED - 9.4%
American Express Co. 275 13
Citigroup, Inc. 1,054 51
Fannie Mae 200 15
Freddie Mac 200 12
J.P. Morgan Chase & Co. 400 15
MBNA Corp. 400 10
MetLife, Inc. 100 3
SLM Corp. 100 4
State Street Corp. 200 10
Washington Mutual, Inc. 300 12
---------
145
FOODS - 4.1%
Coca-Cola Co. 500 25
General Mills, Inc. 200 9
Hershey Foods Corp. 100 8
PepsiCo, Inc. 300 14
Sara Lee Corp. 300 7
---------
63
HEALTH CARE - 9.2%
Baxter International, Inc. 300 9
Boston Scientific Corp.(a) 300 11
Cardinal Health, Inc. 200 12
Johnson & Johnson, Inc. 600 31
Medtronic, Inc. 200 10
Pfizer, Inc. 1,511 53
St. Jude Medical, Inc.(a) 100 6
UnitedHealth Group, Inc. 174 10
---------
142
INSURANCE - 3.3%
American International Group, Inc. 500 33
Marsh & McLennan Cos., Inc. 200 10
Progressive Corp. 100 8
---------
51
</Table>
27
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
MANUFACTURING - 1.5%
3M Co. 124 10
Deere & Co. 100 7
Illinois Tool Works, Inc. 74 6
---------
23
PERSONAL CARE - 1.2%
Colgate-Palmolive Co. 129 6
Gillette Co. 317 12
---------
18
PUBLISHING - 0.6%
Tribune Co. 200 10
RETAIL - 5.9%
Best Buy & Co., Inc. 200 10
Home Depot, Inc. 500 19
InterActiveCorp, Inc.(a) 300 10
Kohl's Corp.(a) 138 6
Lowe's Cos., Inc. 200 11
RadioShack Corp. 200 6
Target Corp. 300 12
The Gap, Inc. 400 9
Walgreen Co. 233 8
---------
91
SERVICES - 2.6%
Apollo Group, Inc., Class A(a) 100 7
Cendant Corp. 300 7
Omnicom Group, Inc. 100 9
Paychex, Inc. 200 7
Sysco Corp. 300 11
---------
41
TELECOMMUNICATIONS - 2.6%
Nextel Communications, Inc.(a) 380 11
QUALCOMM, Inc. 200 11
Verizon Communications, Inc. 551 19
---------
41
---------
TOTAL COMMON STOCKS 1,103
Cost: $1,027
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($)
- --------------------------------------------------------------------------------
CORPORATE BONDS - 9.6%
BANKS - 0.4%
Sovereign Bancorp, Inc.,
10.50%, 11/15/06 5 6
BROADCASTING - 2.2%
Clear Channel Communications, Inc.,
4.40%, 05/15/11 10 10
Comcast Corp., 5.30%, 01/15/14 10 10
Cox Communications, Inc., 4.63%, 06/01/13 10 10
Liberty Media Corp., 5.70%, 05/15/13 5 5
---------
35
COMMERCIAL SERVICES - 0.3%
Cendant Corp., 6.25%, 01/15/08 5 5
ELECTRICAL EQUIPMENT - 0.4%
Fairchild Semiconductor,
10.50%, 02/01/09 5 6
ENERGY & UTILITIES - 1.3%
Devon Energy Corp., 2.75%, 08/01/06 10 10
Valero Energy Corp., 4.75%, 06/15/13 5 5
XTO Energy, Inc., 6.25%, 04/15/13 5 5
---------
20
FINANCIAL - DIVERSIFIED - 1.6%
American General Finance Corp.,
5.38%, 10/01/12 5 5
Citigroup, Inc., 4.88%, 05/07/15 5 5
J.P. Morgan Chase & Co.,
5.25%, 05/01/15 5 5
MBNA America Bank Corp.,
4.63%, 09/15/08 10 10
---------
25
INSURANCE - 0.7%
Ace, Ltd., 6.00%, 04/01/07 5 5
Anthem, Inc., 6.80%, 08/01/12 5 6
---------
11
INVESTMENT BANKING & BROKERAGE - 0.3%
Goldman Sachs Group, Inc.,
4.75%, 07/15/13 5 5
MANUFACTURING - 0.7%
American Standard, Inc.,
7.38%, 02/01/08 5 6
Jabil Circuit, Inc., 5.88%, 07/15/10 5 5
---------
11
RETAIL - 1.1%
Kroger Co., 5.50%, 02/01/13 5 5
The GAP, Inc., 10.55%, 12/15/08 5 6
Yum!Brands, 8.88%, 04/15/11 5 6
---------
17
TELECOMMUNICATIONS - 0.6%
Verizon Global Funding Corp.,
4.38%, 06/01/13 10 9
---------
TOTAL CORPORATE BONDS 150
Cost: $151
</Table>
28
<Page>
<Table>
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 10.4%
FEDERAL HOME LOAN BANK - 1.9%
3.38%, 07/21/08 30 30
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.0%
2.88%, 09/15/05 3 3
3.25%, 02/25/08 4 4
4.50%, 01/15/13 9 9
---------
16
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 7.5%
1.88%, 12/15/04 6 6
3.25%, 01/15/08 9 9
5.25%, 01/15/09 14 15
6.38%, 06/15/09 3 3
4.38%, 09/15/12 4 4
6.50%, 07/01/32 7 7
6.00%, 11/01/32 9 9
5.50%, 03/01/33 42 43
5.50%, 04/01/33 20 20
---------
116
---------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 162
Cost: $162
U.S. TREASURY NOTES - 0.3%
3.38%, 01/15/07 5 5
Cost: $5
REPURCHASE AGREEMENTS - 7.9%
Fifth Third Bank, 0.60%, 01/02/04
(Proceeds at maturity $123, collateralized by
Federal Home Loan Mortgage Corporation security,
7.00%, 08/01/29)
Cost: $123 123 123
---------
TOTAL INVESTMENTS - 99.2% 1,543
Cost: $1,468(b)
</Table>
Percentages indicated are based on net assets of $1,555.
(a) Non-income producing security.
(b) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<Table>
Unrealized appreciation $ 83
Unrealized depreciation (8)
---------
Net unrealized appreciation $ 75
</Table>
CITIZENS ULTRA SHORT BOND FUND
<Table>
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($)
- --------------------------------------------------------------------------------
CORPORATE BONDS - 65.8%
AUTOMOTIVE FINANCE - 24.1%
American Honda Finance,
1.35%, 08/15/06 350 351
BMW Vehicle Owner Trust,
1.94%, 02/25/07 250 251
Capital Auto Receivables Asset Trust,
1.21%, 01/16/06 300 300
Ford Credit Auto Owner Trust,
5.25%, 09/15/05 100 102
Goldman Sachs Auto Loan Trust,
2.08%, 04/16/07 250 251
Harley-Davidson Motorcycle Trust,
1.34%, 01/15/08 140 140
Honda Auto Receivables Owner Trust,
2.16%, 10/21/08 200 197
Toyota Auto Receivables Owner Trust,
4.39%, 05/15/09 100 104
Toyota Trust, 1.69%, 03/15/07 250 250
USAA Auto Owners Trust,
1.58%, 06/15/07 250 249
Volkswagen Auto Loan Trust,
2.36%, 12/20/05 150 151
---------
2,346
BANKS - 6.3%
Bank of America Corp.,
7.88%, 05/16/05 100 108
4.75%, 10/15/06 100 106
JP Morgan Chase & Co.,
1.29%, 02/05/04 150 150
Wells Fargo Co., 1.21%, 03/24/05 250 250
---------
614
BROADCASTING - 2.3%
TCI Communications,
8.00%, 08/01/05 210 228
COMPUTERS - 2.2%
Hewlett-Packard Co., 7.15%, 06/15/05 200 215
FINANCIAL - DIVERSIFIED - 19.7%
American Express Co.,
1.29%, 09/19/06 300 300
7.20%, 09/17/07 100 106
American General Finance,
7.45%, 01/15/05 50 53
3.00%, 11/15/06 250 252
Citibank Credit Card Master Trust,
6.65%, 11/15/06 150 157
</Table>
29
<Page>
<Table>
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($)
- --------------------------------------------------------------------------------
FINANCIAL - DIVERSIFIED (CONT.)
Citicorp, 7.63%, 05/01/05 50 54
Countrywide Capital, 5.25%, 06/15/04 250 254
Goldman Sachs, 1.34%, 08/18/06500 501 501
Merrill Lynch & Co., 1.34%, 04/28/05 250 250
---------
1,927
HEALTH CARE - 1.0%
Pfizer, Inc., 3.63%, 11/01/04100 102 102
INSURANCE - 2.6%
MetLife Global Funding,
1.32%, 08/28/06(a) 250 250
RETAIL - 2.2%
Kroger Co., 7.38%, 03/01/05 200 212
TELECOMMUNICATIONS - 5.4%
CBS Corp., 7.15%, 05/20/05 150 160
Chesapeake (Bell Atlantic Virginia),
6.13%, 07/15/05 100 107
Cox Communications Inc.,
6.88%, 06/15/05 250 267
---------
534
---------
TOTAL CORPORATE BONDS 6,428
Cost: $6,417
U.S. GOVERNMENT AGENCY OBLIGATIONS - 18.4%
FEDERAL HOME LOAN BANK - 6.6%
2.00%, 10/16/06 200 197
2.75%, 10/30/06 200 200
3.00%, 05/14/07 250 251
---------
648
FEDERAL HOME LOAN MORTGAGE CORPORATION - 7.0%
5.83%, 02/09/06 100 108
1.91%, 10/27/06 300 300
3.67%, 02/12/08 250 251
5.50%, 03/15/30 24 24
---------
683
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.9%
2.38%, 03/17/06 250 250
5.50%, 11/25/13 32 32
---------
282
STUDENT LOAN MARKETING ASSOCIATION - 1.9%
1.17%, 06/16/08 62 62
1.18%, 06/16/08 126 126
---------
188
---------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 1,801
Cost $1,803
REPURCHASE AGREEMENTS - 15.4%
Fifth Third Bank, 0.60%, 01/02/04
(Proceeds at maturity $1,502,
collateralized by Federal Home
Loan Mortgage Corporation
security, 8.00%, 12/01/30)
Cost: $1,502 1,502 1,502
---------
TOTAL INVESTMENTS - 99.6% 9,731
Cost: $9,722(b)
</Table>
Percentages indicated are based on net assets of $9,769.
(a) Rule 144A security.
(b) Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation $ 24
Unrealized depreciation (15)
---------
Net unrealized appreciation $ 9
</Table>
<Table>
<Caption>
CITIZENS INCOME FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($)
- --------------------------------------------------------------------------------
CORPORATE BONDS - 58.7%
BANKS - 2.7%
Banknorth Group, Inc.,
3.75%, 05/01/08 500 499
Sovereign Bancorp, Inc.,
10.50%, 11/15/06 995 1,177
---------
1,676
BROADCASTING - 12.3%
Clear Channel Communications, Inc.,
4.40%, 05/15/11 1,490 1,454
Comcast Corp.,
5.85%, 01/15/10 1,000 1,068
5.30%, 01/15/14 990 987
Cox Communications, Inc.,
7.10%, 10/01/12 1,000 1,153
4.60%, 06/01/13 990 954
Liberty Media Corp., 5.70%, 05/15/13 995 1,006
Univison Communications, Inc.,
7.85%, 07/15/11 1,000 1,189
---------
7,811
</Table>
30
<Page>
<Table>
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($)
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 2.5%
Fairchild Semiconductor,
10.50%, 02/01/09 495 552
Flextronics International, Ltd.,(a)
6.50%, 05/15/13 1,000 1,035
---------
1,587
ENERGY & UTILITIES - 5.3%
Devon Energy Corp., 2.75%, 08/01/06 1,340 1,341
Valero Energy Corp., 4.75%, 06/15/13 995 943
XTO Energy, Inc., 6.25%, 04/15/13 995 1,047
---------
3,331
FINANCIAL - DIVERSIFIED - 8.1%
American General Finance Corp.,
5.40%, 10/01/12 995 1,026
Citigroup, Inc.,
4.90%, 05/07/15 995 972
J.P. Morgan Chase & Co.,
5.25%, 05/01/15 995 992
MBNA America Bank Corp.,
4.60%, 09/15/08 990 1,016
7.10%, 11/15/12 1,000 1,143
---------
5,149
HEALTH CARE - 1.8%
AmerisourceBergen Corp.,
8.10%, 09/01/08 1,000 1,128
INSURANCE - 4.3%
Ace, Ltd., 6.00%, 04/01/07 995 1,078
Anthem, Inc., 6.80%, 08/01/12 995 1,124
Chubb Corp., 3.95%, 04/01/08(a) 500 505
---------
2,707
INVESTMENT BANKING & BROKERAGE - 1.5%
The Goldman Sachs Group, Inc.,
4.75%, 07/15/13 995 970
LEISURE - 0.8%
Harley-Davidson Funding,
3.60%, 12/15/08(a) 500 499
MANUFACTURING - 3.9%
American Standard, Inc.,
7.40%, 02/01/08 995 1,099
Jabil Circuit, Inc., 5.90%, 07/15/10 1,295 1,351
---------
2,450
OFFICE EQUIPMENT & SUPPLIES - 0.8%
Office Depot, 6.25%, 08/15/13(a) 500 525
RESTAURANTS - 1.7%
Dominos, Inc., 8.25%, 07/01/11(a) 1,000 1,071
RETAIL - 5.5%
Kroger Co., 5.50%, 02/01/13 995 1,012
The GAP, Inc., 10.55%, 12/15/08 995 1,227
Yum!Brands, 8.90%, 04/15/11 995 1,206
---------
3,445
SERVICES - 2.5%
Cendant Corp., 6.25%, 01/15/08 995 1,085
Fiserv, Inc., 4.00%, 04/15/08(a) 500 498
---------
1,583
TELECOMMUNICATIONS - 5.0%
Nextel Communicatins, Inc.,
7.40%, 08/01/15 1,000 1,075
Verizon Global Funding Corp.,
7.40%, 09/01/12 1,000 1,159
4.40%, 06/01/13 990 935
---------
3,169
---------
TOTAL CORPORATE BONDS 37,101
Cost: $35,458
U.S. GOVERNMENT AGENCY OBLIGATIONS - 31.5%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 14.1%
1.90%, 10/27/06 1,000 1,000
4.50%, 07/23/07 1,000 1,016
4.00%, 06/15/13 3,000 3,048
6.25%, 11/14/13 1,000 1,060
3.50%, 03/15/14 2,803 2,815
---------
8,939
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 14.0%
2.75%, 08/11/06 2,000 2,001
6.50%, 08/01/31 1,077 1,126
6.00%, 08/01/32 1,072 1,108
5.50%, 04/01/33 4,560 4,622
---------
8,857
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 3.4%
6.00%, 04/15/31 104 108
6.50%, 12/15/31 657 693
6.50%, 06/15/32 1,268 1,337
---------
2,138
---------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 19,934
Cost: $19,853
U.S. TREASURY NOTES - 4.0%
3.40%, 01/15/07 2,335 2,530
Cost: $2,494
</Table>
31
<Page>
<Table>
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 5.0%
Fifth Third Bank, 0.60%, 01/02/04
(Proceeds at maturity $3,149, collateralized by
Federal National Mortgage Association security,
4.50%, 07/01/18)
Cost: $3,149 3,149 3,149
---------
TOTAL INVESTMENTS - 99.2% 62,714
Cost: $60,954(b)
</Table>
Percentages indicated are based on net assets of $63,203.
(a) Rule 144A security.
(b) Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation $ 2,090
Unrealized depreciation (330)
---------
Net unrealized appreciation $ 1,760
</Table>
CITIZENS MONEY MARKET FUND
<Table>
<Caption>
SECURITY SHARES VALUE ($)
- --------------------------------------------------------------------------------
MUTUAL FUNDS - 98.3%
Citizens Prime Money Market Fund
Cost: $99,966 99,966 99,966
---------
TOTAL INVESTMENTS - 98.3% 99,966
Cost: $99,966
</Table>
Percentages indicated are based on net assets of $101,703.
CITIZENS PRIME MONEY MARKET FUND
<Table>
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($)
- --------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 2.6%
City National Bank of New Jersey,
1.50%, 03/17/04(a) 100 100
Independence Federal Savings Bank,
1.30%, 09/26/04(a) 100 100
Mercantile Safe Deposit and Trust,
1.20%, 06/02/04 2,000 2,000
Self Help Credit Union,
1.30%, 03/14/04(a) 100 100
U.S. Bank,
1.42%, 01/08/04 2,000 2,000
---------
TOTAL CERTIFICATES OF DEPOSIT 4,300
Cost: $4,300
COMMERCIAL PAPER - 80.5%
American Express Credit Corp.,
1.02%, 01/08/04 5,000 4,999
American General Finance Corp.,
1.13%, 01/05/04 7,500 7,499
Atlantis One Funding Corp.,
1.13%, 04/21/04(b) 4,000 3,986
Blue Ridge Asset Funding,
1.08%, 01/07/04(b) 7,500 7,499
Citicorp,
1.04%, 01/06/04 8,000 7,998
Coca Cola Co.,
1.07%, 01/30/04(b) 1,600 1,599
Cooperative Association of Tractor Dealers,
1.10%, 01/06/04 7,000 6,999
1.17%, 02/18/04 2,593 2,589
1.17%, 05/12/04 2,200 2,191
Countrywide Home Loans,
0.99%, 01/09/04 8,000 7,998
Dow Jones & Co, Inc.,
1.08%, 01/06/04(b) 1,988 1,988
Fountain Square,
1.08%, 01/06/04(b) 8,000 7,998
Galaxy Funding, Inc.,
1.10%, 01/21/04(b) 4,000 3,998
Galleon Capital Corp.,
1.10%, 01/23/04(b) 7,500 7,495
Gillette Co.,
0.83%, 01/02/04(b) 8,000 7,999
The Goldman Sachs Group,
0.92%, 01/26/04 2,200 2,199
1.32%, 08/23/04 3,500 3,470
ING America Insurance,
1.10%, 02/18/04 7,000 6,990
J.P. Morgan Chase & Co.,
1.08%, 02/17/04 2,433 2,430
Marsh and McLennan Cos., Inc.,
1.05%, 01/09/04(b) 8,000 7,997
Merrill Lynch,
1.05%, 01/06/04 3,000 3,000
Metlife Funding Inc.,
1.03%, 01/12/04 7,500 7,498
Mid States Federal Credit Union Corp.,
1.09%, 01/05/04 7,009 7,008
New York Times Co.,
0.90%, 01/02/04 940 940
State Street Corp.,
1.05%, 01/02/04 8,050 8,049
</Table>
32
<Page>
<Table>
<Caption>
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($)
- --------------------------------------------------------------------------------
UBS Finance Corp.,
1.98%, 01/05/04 2,115 2,115
---------
TOTAL COMMERCIAL PAPER 134,531
Cost: $134,531
CORPORATE BONDS - 9.9%
American Express Centurion Bank,
1.13%, 07/14/04 (c) 3,000 3,000
The Bear Stearns Cos.,
1.12%, 03/25/04 (c) 5,000 5,000
Merrill Lynch and Co, Inc.,
1.47%, 03/08/04 (c) 5,000 5,003
Pelican Capital LLC,
1.31%, 04/01/28 (c) 560 560
Redding Life Care LLC,
1.15%, 10/10/05 (c) 3,000 3,000
---------
TOTAL CORPORATE BONDS 16,563
Cost: $16,563
MUNICIPAL NOTES - 2.1%
New York State Housing Finance Agency,
1.13%, 11/15/29 (c) 3,500 3,500
Cost: $3,500
U.S. GOVERNMENT AGENCY OBLIGATIONS - 4.8%
STUDENT LOAN MARKETING ASSOCIATION - 4.8%
0.99%, 01/15/04 (c) 4,000 4,000
0.94%, 04/15/04 (c) 4,000 4,000
---------
Cost: $8,000 8,000
REPURCHASE AGREEMENTS - 0.1%
Fifth Third Bank, 0.60%, 01/02/04
(Proceeds at maturity $126,
collarteralized by Federal Home Loan Mortgage
Corporation security, 7.50%, 11/01/29)
Cost: $126 126 126
---------
TOTAL INVESTMENTS - 100.0% 167,020
Cost: $167,020 (d)
</Table>
Percentages indicated are based on net assets of $166,966.
(a) Restricted security which may not be publicly sold without registration
under the Securities Act of 1933.
(b) Rule 144A security
(c) Variable rate security. The rate presented represents the rate in effect at
December 31, 2003.
(d) Represents cost for financial reporting and federal income tax purposes.
33
<Page>
<Table>
<Caption>
STATEMENTS OF ASSETS AND LIABILITIES
300 CORE GROWTH EMERGING SMALL CAP CORE
FUND FUND GROWTH FUND GROWTH FUND
- --------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value $ 4,425,926 $ 377,557,523 $ 189,741,921 $ 25,335,437
Repurchase agreements 14,438 3,293,663 3,064,066 238,936
------------- ------------- ------------- -------------
Total investments 4,440,364 380,851,186 192,805,987 25,574,373
Cash - - - -
Foreign currency - - - -
Receivables:
Interest and dividends 3,157 110,921 88,686 932
Investments sold - 29,280,445 - 174,245
Tax reclaims - - - -
Due from investment adviser 2,922 - - -
Unrealized appreciation on forward foreign
currency contracts - - - -
Deferred offering costs 7,577 - - -
Prepaid expenses 13,516 35,147 24,486 10,396
- -------------------------------------------------------------------------------------------------------------
Total assets 4,467,536 410,277,699 192,919,159 25,759,946
LIABILITIES
Payables:
Dividends to shareholders - - - -
Investments purchased 13,860 32,551,239 699,890 222,447
Capital shares redeemed - - 1,295 -
Unrealized depreciation on forward foreign
currency contracts - - - -
Investment management fees - 157,315 160,576 10,441
Administrative fees 487 47,195 24,087 3,132
Shareholder service fees 287 49,934 15,113 1,233
Distribution fees 812 65,426 39,277 5,220
Other accrued expenses 5,777 229,694 140,987 18,208
- -------------------------------------------------------------------------------------------------------------
Total liabilities 21,223 33,100,803 1,081,225 260,681
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $ 4,446,313 $ 377,176,896 $ 191,837,934 $ 25,499,265
- -------------------------------------------------------------------------------------------------------------
NET ASSETS
Standard shares:
Net assets $ 4,446,313 $ 311,485,854 $ 176,336,231 $ 25,499,265
Number of shares outstanding 405,353 16,864,377 13,778,271 2,410,689
Net asset value, offering and redemption
price per share $ 10.97 $ 18.47 $ 12.80 $ 10.58
Institutional shares:
Net assets - $ 62,988,889 $ 3,716,031 -
Number of shares outstanding - 4,133,094 282,586 -
Net asset value, offering and redemption
price per share - $ 15.24 $ 13.15 -
Administrative shares:
Net assets - $ 2,702,153 $ 11,785,672 -
Number of shares outstanding - 143,877 907,205 -
Net asset value, offering and redemption
price per share - $ 18.78 $ 12.99 -
Net assets consist of:
Paid-in capital $ 4,138,689 $ 418,381,748 $ 372,291,501 $ 24,008,824
Accumulated net investment income/loss 94 (1,100,424) (1,352,990) (152,930)
Accumulated net realized gains/losses
on investments and foreign currencies 1,989 (100,067,303) (206,319,536) (847,178)
Net unrealized appreciation on investments
and foreign currencies 305,541 59,962,875 27,218,959 2,490,549
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $ 4,446,313 $ 377,176,896 $ 191,837,934 $ 25,499,265
- -------------------------------------------------------------------------------------------------------------
Investments, at cost $ 4,134,823 $ 320,888,311 $ 165,587,028 $ 23,083,824
Foreign currency, at cost - - - -
</Table>
See Financial Notes
34
<Page>
AS OF DECEMBER 31, 2003 UNAUDITED
<Table>
<Caption>
VALUE GLOBAL EQUITY BALANCED ULTRA SHORT
FUND FUND FUND BOND FUND
- -------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value $ 20,434,778 $ 120,252,667 $ 1,420,152 $ 8,228,592
Repurchase agreements 124,151 1,335,746 122,599 1,501,978
- -------------------------------------------------------------------------------------------------------------
Total investments 20,558,929 121,588,413 1,542,751 9,730,570
Cash - - - -
Foreign currency - 2,406 - -
Receivables:
Interest and dividends 38,721 114,321 4,333 42,852
Investments sold - - - -
Tax reclaims - 69,820 - -
Due from investment adviser - - 4,733 9,420
Unrealized appreciation on forward foreign
currency contracts - 1,429 - -
Deferred offering costs - - - -
Prepaid expenses 6,174 23,808 7,334 7,829
- -------------------------------------------------------------------------------------------------------------
Total assets 20,603,824 121,800,197 1,559,151 9,790,671
LIABILITIES
Payables:
Dividends to shareholders - - 1,297 15,446
Investments purchased 52,402 - - -
Capital shares redeemed - 1,395 - -
Unrealized depreciation on forward foreign
currency contracts - 1,429 - -
Investment management fees 11,773 100,780 - -
Administrative fees 2,523 15,104 185 1,270
Shareholder service fees 1,679 6,830 55 142
Distribution fees 4,205 23,628 308 2,117
Other accrued expenses 17,919 74,873 2,793 2,245
- -------------------------------------------------------------------------------------------------------------
Total liabilities 90,501 224,039 4,638 21,220
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $ 20,513,323 $ 121,576,158 $ 1,554,513 $ 9,769,451
- -------------------------------------------------------------------------------------------------------------
NET ASSETS
Standard shares:
Net assets $ 20,513,323 $ 111,471,690 $ 1,554,513 $ 9,769,451
Number of shares outstanding 2,035,057 7,186,261 137,482 979,431
Net asset value, offering and redemption
price per share $ 10.08 $ 15.51 $ 11.31 $ 9.97
Institutional shares:
Net assets - $ 7,549,264 - -
Number of shares outstanding - 475,692 - -
Net asset value, offering and redemption
price per share - $ 15.87 - -
Administrative shares:
Net assets - $ 2,555,204 - -
Number of shares outstanding - 163,007 - -
Net asset value, offering and redemption
price per share - $ 15.68 - -
Net assets consist of:
Paid-in capital $ 28,338,187 $ 244,227,482 $ 1,409,333 $ 9,838,856
Accumulated net investment income/loss (12,233) (1,013,051) (481) (8,647)
Accumulated net realized gains/losses
on investments and foreign currencies (10,266,327) (135,306,568) 70,923 (69,734)
Net unrealized appreciation on investments
and foreign currencies 2,453,696 13,668,295 74,738 8,976
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $ 20,513,323 $ 121,576,158 $ 1,554,513 $ 9,769,451
- -------------------------------------------------------------------------------------------------------------
Investments, at cost $ 18,105,233 $ 107,931,931 $ 1,468,013 $ 9,721,594
Foreign currency, at cost - 2,398 - -
<Caption>
INCOME MONEY MARKET PRIME MONEY
FUND FUND MARKET FUND
- ---------------------------------------------------------------------------------------------
ASSETS
Investments, at value $ 59,565,132 $ 99,965,686 $ 166,894,372
Repurchase agreements 3,149,346 - 125,627
- ---------------------------------------------------------------------------------------------
Total investments 62,714,478 99,965,686 167,019,999
Cash - 1,783,503 -
Foreign currency - - -
Receivables:
Interest and dividends 769,502 92,271 83,744
Investments sold - - -
Tax reclaims - - -
Due from investment adviser - - 9,258
Unrealized appreciation on forward foreign
currency contracts - - -
Deferred offering costs - - 8,134
Prepaid expenses 8,784 20,594 3,310
- ---------------------------------------------------------------------------------------------
Total assets 63,492,764 101,862,054 167,124,445
LIABILITIES
Payables:
Dividends to shareholders 192,706 10,788 151,286
Investments purchased - - -
Capital shares redeemed - - -
Unrealized depreciation on forward foreign
currency contracts - - -
Investment management fees 34,928 30,484 -
Administrative fees 8,060 13,065 -
Shareholder service fees 2,693 7,013 2
Distribution fees 13,434 - -
Other accrued expenses 38,070 97,946 7,470
- ---------------------------------------------------------------------------------------------
Total liabilities 289,891 159,296 158,758
- ---------------------------------------------------------------------------------------------
NET ASSETS $ 63,202,873 $ 101,702,758 $ 166,965,687
- ---------------------------------------------------------------------------------------------
NET ASSETS
Standard shares:
Net assets $ 63,202,873 $ 91,309,317 $ 166,965,687
Number of shares outstanding 6,254,104 91,382,660 166,965,687
Net asset value, offering and redemption
price per share $ 10.11 $ 1.00 $ 1.00
Institutional shares:
Net assets - $ 10,393,441 -
Number of shares outstanding - 10,395,232 -
Net asset value, offering and redemption
price per share - $ 1.00 -
Administrative shares:
Net assets - - -
Number of shares outstanding - - -
Net asset value, offering and redemption
price per share - - -
Net assets consist of:
Paid-in capital $ 67,366,002 $ 101,711,841 $ 166,965,687
Accumulated net investment income/loss (117,714) - -
Accumulated net realized gains/losses
on investments and foreign currencies (5,805,648) (9,083) -
Net unrealized appreciation on investments
and foreign currencies 1,760,233 - -
- ---------------------------------------------------------------------------------------------
NET ASSETS $ 63,202,873 $ 101,702,758 $ 166,965,687
- ---------------------------------------------------------------------------------------------
Investments, at cost $ 60,954,245 $ 99,965,686 $ 167,019,999
Foreign currency, at cost - - -
</Table>
35
<Page>
<Table>
<Caption>
STATEMENTS OF OPERATIONS
300 CORE GROWTH EMERGING SMALL CAP CORE
FUND FUND GROWTH FUND GROWTH FUND
- --------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 281 $ 12,527 $ 14,446 $ 2,714
Dividend(3) 12,645 1,444,897 392,195 13,811
- -------------------------------------------------------------------------------------------------------------
Total investment income 12,926 1,457,424 406,641 16,525
EXPENSES
Investment management fees 1,927 924,310 929,029 55,618
Administrative fees 1,445 277,296 139,356 16,686
Distribution fees:
Standard shares 2,409 376,168 212,517 27,809
Administrative shares - 3,199 12,950 -
Shareholder service fees:
Standard shares 383 378,997 67,684 7,700
Institutional shares - 552 74 -
Administrative shares - 92 156 -
Transfer agent expenses:
Standard shares 4,542 368,086 267,555 29,713
Institutional shares - 1,725 184 -
Administrative shares - 777 2,208 -
Accounting expenses 2,449 69,811 35,078 5,934
Custody expenses 5,332 9,208 8,888 8,835
Offering costs 2,714 - - -
Trustee expenses 122 28,543 14,232 1,569
Other expenses 6,279 121,119 70,713 15,770
- -------------------------------------------------------------------------------------------------------------
Total expenses before reimbursements,
waivers,or expenses paid indirectly 27,602 2,559,883 1,760,624 169,634
Reimbursements or waivers from adviser (18,825) - - -
Expenses paid indirectly - (2,035) (993) (179)
- -------------------------------------------------------------------------------------------------------------
Net expenses 8,777 2,557,848 1,759,631 169,455
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/LOSS $ 4,149 $ (1,100,424) $ (1,352,990) $ (152,930)
REALIZED AND UNREALIZED
GAINS/LOSSES ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Realized gains/losses on investments
and foreign currency transactions $ 1,989 $ 30,132,322 $ 19,432,545 $ 3,595,359
Change in unrealized
appreciation/depreciation
on investments and foreign currencies 305,541 13,753,992 10,157,361 692,599
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains/losses
on investments and foreign currencies 307,530 43,886,314 29,589,906 4,287,958
CHANGE IN NET ASSETS FROM OPERATIONS $ 311,679 $ 42,785,890 $ 28,236,916 $ 4,135,028
</Table>
(1) For the period August 29, 2003, commencement of operations, to December 31,
2003.
(2) For the period July 1, 2003, commencement of operations, to December 31,
2003.
(3) Dividend income net of withholding taxes. For the six months ended December
31, 2003, withholding taxes for the Global Equity Fund were $44,418.
See Financial Notes
36
<Page>
FOR THE SIX MONTHS ENDED DECEMBER 31, 2003 UNAUDITED
<Table>
<Caption>
VALUE GLOBAL EQUITY BALANCED ULTRA SHORT
FUND FUND FUND BOND FUND
- -------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 1,249 $ 5,136 $ 6,575 $ 96,604
Dividend(3) 148,786 651,081 3,552 -
- -------------------------------------------------------------------------------------------------------------
Total investment income 150,035 656,217 10,127 96,604
EXPENSES
Investment management fees 63,174 571,615 4,160 18,555
Administrative fees 13,537 85,743 960 7,952
Distribution fees:
Standard shares 22,562 131,084 1,600 13,253
Administrative shares - 2,830 - -
Shareholder service fees:
Standard shares 8,239 31,753 487 1,408
Institutional shares - 74 - -
Administrative shares - 92 - -
Transfer agent expenses:
Standard shares 32,243 176,927 6,750 8,633
Institutional shares - 276 - -
Administrative shares - 1,012 - -
Accounting expenses 5,566 25,525 2,907 4,756
Custody expenses 3,018 7,082 2,059 2,438
Offering costs - - 6,149 5,419
Trustee expenses 1,357 9,098 530 386
Other expenses 12,621 55,870 12,454 16,235
- -------------------------------------------------------------------------------------------------------------
Total expenses before reimbursements,
waivers,or expenses paid indirectly 162,317 1,098,981 38,056 79,035
Reimbursements or waivers from adviser - - (29,718) (77,331)
Expenses paid indirectly (49) - - -
- -------------------------------------------------------------------------------------------------------------
Net expenses 162,268 1,098,981 8,338 1,704
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/LOSS $ (12,233) $ (442,764) $ 1,789 $ 94,900
REALIZED AND UNREALIZED
GAINS/LOSSES ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Realized gains/losses on investments
and foreign currency transactions $ 1,404,021 $ (3,295,807) $ 78,568 $ (61,702)
Change in unrealized
appreciation/depreciation
on investments and foreign currencies 1,421,691 20,066,279 48,977 (29,509)
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains/losses
on investments and foreign currencies 2,825,712 16,770,472 127,545 (91,211)
CHANGE IN NET ASSETS FROM OPERATIONS $ 2,813,479 $ 16,327,708 $ 129,334 $ 3,689
<Caption>
INCOME MONEY MARKET PRIME MONEY
FUND(1) FUND MARKET FUND(2)
- ---------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 1,527,734 $ 3,973 $ 855,722
Dividend(3) - 578,981 -
- ---------------------------------------------------------------------------------------------
Total investment income 1,527,734 582,954 855,722
EXPENSES
Investment management fees 215,999 188,971 195,620
Administrative fees 49,846 80,989 -
Distribution fees:
Standard shares 83,076 - -
Administrative shares - - -
Shareholder service fees:
Standard shares 15,793 31,724 2
Institutional shares - 340 -
Administrative shares - - -
Transfer agent expenses:
Standard shares 61,340 137,298 2,562
Institutional shares - 827 -
Administrative shares - - -
Accounting expenses 16,946 21,701 8,853
Custody expenses 2,770 1,453 6,449
Offering costs - - 6,410
Trustee expenses 5,364 9,131 3,169
Other expenses 25,455 49,301 8,861
- ---------------------------------------------------------------------------------------------
Total expenses before reimbursements,
waivers,or expenses paid indirectly 476,589 521,735 231,926
Reimbursements or waivers from adviser - - (231,926)
Expenses paid indirectly - - -
- ---------------------------------------------------------------------------------------------
Net expenses 476,589 521,735 -
- ---------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/LOSS $ 1,051,145 $ 61,219 $ 855,722
REALIZED AND UNREALIZED
GAINS/LOSSES ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Realized gains/losses on investments
and foreign currency transactions $ (22,670) - -
Change in unrealized
appreciation/depreciation
on investments and foreign currencies (1,043,169) - -
- ---------------------------------------------------------------------------------------------
Net realized and unrealized gains/losses
on investments and foreign currencies (1,065,839) - -
CHANGE IN NET ASSETS FROM OPERATIONS $ (14,694) $ 61,219 $ 855,722
</Table>
37
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
300 FUND CORE GROWTH FUND
- -------------------------------------------------------------------------------------------------------
FOR THE PERIOD FOR THE SIX
08/29/03(1) -MONTHS ENDED FOR THE
12/31/03 12/31/03 YEAR ENDED
(UNAUDITED) (UNAUDITED) 06/30/03
- -------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income/loss $ 4,149 $ (1,100,424) $ (520,790)
Realized gains/losses on investments
and foreign currency transactions 1,989 30,132,322 (39,810,514)
Change in unrealized appreciation/depreciation
on investments and foreign currencies 305,541 13,753,992 29,592,435
- ---------------------------------------------------------------------------------------------------
Change in net assets from operations 311,679 42,785,890 (10,738,869)
Dividends to shareholders:
From net investment income:
Standard shares (4,055) - -
Change in net assets from capital transactions 4,138,689 (16,945,101) (51,887,083)
CHANGE IN NET ASSETS $ 4,446,313 $ 25,840,789 $ (62,625,952)
- ---------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period $ - $ 351,336,107 $ 413,962,059
End of period $ 4,446,313 $ 377,176,896 $ 351,336,107
- ---------------------------------------------------------------------------------------------------
Accumulated net investment income/loss $ 94 $ (1,100,424) -
CAPITAL TRANSACTIONS
Standard shares
Proceeds from shares issued $ 4,134,725 $ 10,350,458 $ 20,813,812
Dividends reinvested 4,044 - -
Cost of shares redeemed (80) (18,955,441) (53,825,105)
- ---------------------------------------------------------------------------------------------------
Net change 4,138,689 (8,604,983) (33,011,293)
Institutional shares
Proceeds from shares issued - $ 12,298,571 $ 27,922,878
Cost of shares redeemed - (20,616,986) (47,184,580)
- ---------------------------------------------------------------------------------------------------
Net change - (8,318,415) (19,261,702)
- ---------------------------------------------------------------------------------------------------
Administrative shares
Proceeds from shares issued - $ 370,225 $ 1,251,277
Cost of shares redeemed - (391,928) (865,365)
- ---------------------------------------------------------------------------------------------------
Net change - (21,703) 385,912
- ---------------------------------------------------------------------------------------------------
CHANGE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ 4,138,689 $ (16,945,101) $ (51,887,083)
- ---------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Standard shares
Issued 404,987 594,481 1,364,126
Reinvested 374 - -
Redeemed (8) (1,084,301) (3,545,634)
- ---------------------------------------------------------------------------------------------------
Net change 405,353 (489,820) (2,181,508)
- ---------------------------------------------------------------------------------------------------
Institutional shares
Issued - 866,497 2,233,874
Redeemed - (1,436,900) (3,763,348)
Net change - (570,403) (1,529,474)
Administrative shares
Issued - 20,778 80,682
Redeemed - (22,329) (55,257)
- ---------------------------------------------------------------------------------------------------
Net change - (1,551) 25,425
- ---------------------------------------------------------------------------------------------------
CHANGE IN SHARES FROM
SHARE TRANSACTIONS 405,353 (1,061,774) (3,685,557)
<Caption>
EMERGING GROWTH FUND
- ---------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
12/31/03 YEAR ENDED
(UNAUDITED) 06/30/03
- ---------------------------------------------------------------------------------
OPERATIONS
Net investment income/loss $ (1,352,990) $ (2,526,279)
Realized gains/losses on investments
and foreign currency transactions 19,432,545 (45,670,710)
Change in unrealized appreciation/depreciation
on investments and foreign currencies 10,157,361 31,865,153
- ---------------------------------------------------------------------------------
Change in net assets from operations 28,236,916 (16,331,836)
Dividends to shareholders:
From net investment income:
Standard shares - -
Change in net assets from capital transactions (8,249,808) (17,500,693)
CHANGE IN NET ASSETS $ 19,987,108 $ (33,832,529)
- ---------------------------------------------------------------------------------
NET ASSETS
Beginning of period $ 171,850,826 $ 205,683,355
End of period $ 191,837,934 $ 171,850,826
- ---------------------------------------------------------------------------------
Accumulated net investment income/loss $ (1,352,990) -
CAPITAL TRANSACTIONS
Standard shares
Proceeds from shares issued $ 11,144,944 $ 37,852,532
Dividends reinvested - -
Cost of shares redeemed (18,580,951) (55,356,284)
- ---------------------------------------------------------------------------------
Net change (7,436,007) (17,503,752)
Institutional shares
Proceeds from shares issued $ 898,299 $ 2,821,812
Cost of shares redeemed (3,413,744) (3,432,566)
- ---------------------------------------------------------------------------------
Net change (2,515,445) (610,754)
- ---------------------------------------------------------------------------------
Administrative shares
Proceeds from shares issued $ 4,241,198 $ 6,162,025
Cost of shares redeemed (2,539,554) (5,548,212)
- ---------------------------------------------------------------------------------
Net change 1,701,644 613,813
- ---------------------------------------------------------------------------------
CHANGE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ (8,249,808) $ (17,500,693)
- ---------------------------------------------------------------------------------
SHARE TRANSACTIONS
Standard shares
Issued 934,360 3,719,462
Reinvested - -
Redeemed (1,558,560) (5,464,486)
- ---------------------------------------------------------------------------------
Net change (624,200) (1,745,024)
- ---------------------------------------------------------------------------------
Institutional shares
Issued 70,702 273,794
Redeemed (267,082) (329,608)
Net change (196,380) (55,814)
Administrative shares
Issued 346,107 597,115
Redeemed (209,500) (534,955)
- ---------------------------------------------------------------------------------
Net change 136,607 62,160
- ---------------------------------------------------------------------------------
CHANGE IN SHARES FROM
SHARE TRANSACTIONS (683,973) (1,738,678)
</Table>
(1) Commencement of operations.
See Financial Notes
38
<Page>
<Table>
<Caption>
SMALL CAP CORE GROWTH FUND VALUE FUND
- ---------------------------------------------------------------------------------------------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
12/31/03 YEAR ENDED 12/31/03 YEAR ENDED
(UNAUDITED) 06/30/03 (UNAUDITED) 06/30/03
- ---------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income/loss $ (152,930) $ (175,082) $ (12,233) $ (99,467)
Realized gains/losses on investments
and foreign currency transactions 3,595,359 (3,605,564) 1,404,021 (10,282,004)
Change in unrealized appreciation/depreciation
on investments and foreign currencies 692,599 2,748,439 1,421,691 9,608,668
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets from operations 4,135,028 (1,032,207) 2,813,479 (772,803)
Dividends to shareholders:
From net investment income:
Standard shares - - - -
Change in net assets from capital transactions 3,543,015 394,033 1,473,525 (4,060,871)
CHANGE IN NET ASSETS $ 7,678,043 $ (638,174) $ 4,287,004 $ (4,833,674)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period $ 17,821,222 $ 18,459,396 $ 16,226,319 $ 21,059,993
End of period $ 25,499,265 $ 17,821,222 $ 20,513,323 $ 16,226,319
- ---------------------------------------------------------------------------------------------------------------------
Accumulated net investment income/loss $ (152,930) - $ (12,233) -
CAPITAL TRANSACTIONS
Standard shares
Proceeds from shares issued $ 5,430,416 $ 5,237,434 $ 3,536,125 $ 6,319,550
Dividends reinvested - - - -
Cost of shares redeemed (1,887,401) (4,843,401) (2,062,600) (10,380,421)
- ---------------------------------------------------------------------------------------------------------------------
Net change 3,543,015 394,033 1,473,525 (4,060,871)
Institutional shares
Proceeds from shares issued - - - -
Cost of shares redeemed - - - -
- ---------------------------------------------------------------------------------------------------------------------
Net change - - - -
- ---------------------------------------------------------------------------------------------------------------------
Administrative shares
Proceeds from shares issued - - - -
Cost of shares redeemed - - - -
- ---------------------------------------------------------------------------------------------------------------------
Net change - - - -
- ---------------------------------------------------------------------------------------------------------------------
CHANGE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ 3,543,015 $ 394,033 $ 1,473,525 $ (4,060,871)
- ---------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Standard shares
Issued 548,732 672,716 379,333 819,291
Reinvested - - - -
Redeemed (193,103) (628,978) (222,436) (1,349,990)
- ---------------------------------------------------------------------------------------------------------------------
Net change 355,629 43,738 156,897 (530,699)
- ---------------------------------------------------------------------------------------------------------------------
Institutional shares
Issued - - - -
Redeemed - - - -
- ---------------------------------------------------------------------------------------------------------------------
Net change - - - -
- ---------------------------------------------------------------------------------------------------------------------
Administrative shares
Issued - - - -
Redeemed - - - -
- ---------------------------------------------------------------------------------------------------------------------
Net change - - - -
- ---------------------------------------------------------------------------------------------------------------------
CHANGE IN SHARES FROM
SHARE TRANSACTIONS 355,629 43,738 156,897 (530,699)
<Caption>
GLOBAL EQUITY FUND
- ---------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE
12/31/03 YEAR ENDED
(UNAUDITED) 06/30/03
- ---------------------------------------------------------------------------------
OPERATIONS
Net investment income/loss $ (442,764) $ (245,695)
Realized gains/losses on investments
and foreign currency transactions (3,295,807) (20,092,299)
Change in unrealized appreciation/depreciation
on investments and foreign currencies 20,066,279 10,231,205
- ---------------------------------------------------------------------------------
Change in net assets from operations 16,327,708 (10,106,789)
Dividends to shareholders:
From net investment income:
Standard shares - -
Change in net assets from capital transactions (5,344,109) (26,919,108)
CHANGE IN NET ASSETS $ 10,983,599 $ (37,025,897)
- ---------------------------------------------------------------------------------
NET ASSETS
Beginning of period $ 110,592,559 $ 147,618,456
End of period $ 121,576,158 $ 110,592,559
- ---------------------------------------------------------------------------------
Accumulated net investment income/loss $ (1,013,051) $ (570,287)
CAPITAL TRANSACTIONS
Standard shares
Proceeds from shares issued $ 8,469,039 $ 25,646,368
Dividends reinvested - -
Cost of shares redeemed (13,794,772) (50,286,863)
- ---------------------------------------------------------------------------------
Net change (5,325,733) (24,640,495)
Institutional shares
Proceeds from shares issued $ 10,174,574 $ 37,771,071
Cost of shares redeemed (10,348,213) (40,033,225)
- ---------------------------------------------------------------------------------
Net change (173,639) (2,262,154)
- ---------------------------------------------------------------------------------
Administrative shares
Proceeds from shares issued $ 292,878 $ 706,362
Cost of shares redeemed (137,615) (722,821)
- ---------------------------------------------------------------------------------
Net change 155,263 (16,459)
- ---------------------------------------------------------------------------------
CHANGE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ (5,344,109) $ (26,919,108)
- ---------------------------------------------------------------------------------
SHARE TRANSACTIONS
Standard shares
Issued 547,514 1,995,494
Reinvested - -
Redeemed (969,989) (3,944,883)
- ---------------------------------------------------------------------------------
Net change (422,475) (1,949,389)
- ---------------------------------------------------------------------------------
Institutional shares
Issued 721,787 2,906,867
Redeemed (735,984) (3,078,716)
- ---------------------------------------------------------------------------------
Net change (14,197) (171,849)
- ---------------------------------------------------------------------------------
Administrative shares
Issued 20,083 55,041
Redeemed (9,496) (56,965)
- ---------------------------------------------------------------------------------
Net change 10,587 (1,924)
- ---------------------------------------------------------------------------------
CHANGE IN SHARES FROM
SHARE TRANSACTIONS (426,085) (2,123,162)
</Table>
39
<Page>
<Table>
<Caption>
BALANCED FUND ULTRA SHORT BOND FUND
- --------------------------------------------------------------------------------------------------------------------
FOR THE SIX FOR THE SIX FOR THE PERIOD
MONTHS ENDED FOR THE PERIOD -MONTHS ENDED 11/21/02(1)-
12/31/03 12/20/02(1) 12/31/03 06/30/03
(UNAUDITED) 06/30/03 (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,789 $ 1,205 $ 94,900 $ 82,660
Realized gains/losses on investments 78,568 24,140 (61,702) (2,413)
Change in unrealized
appreciation/depreciation
on investments 48,977 25,761 (29,509) 38,485
- --------------------------------------------------------------------------------------------------------------------
Change in net assets from operations 129,334 51,106 3,689 118,732
Dividends to shareholders:
From net investment income:
Standard shares (2,426) (1,502) (102,571) (89,255)
Institutional shares - - - -
From net realized gains on investments:
Standard shares (31,488) - - -
- --------------------------------------------------------------------------------------------------------------------
Total dividends (33,914) (1,502) (102,571) (89,255)
Change in net assets from capital transactions 398,027 1,011,462 616,410 9,222,446
CHANGE IN NET ASSETS $ 493,447 $ 1,061,066 $ 517,528 $ 9,251,923
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period $ 1,061,066 $ - $ 9,251,923 $ -
End of period $ 1,554,513 $ 1,061,066 $ 9,769,451 $ 9,251,923
- --------------------------------------------------------------------------------------------------------------------
Accumulated net investment income/loss $ (481) $ 156 $ (8,647) $ (976)
CAPITAL TRANSACTIONS
Standard shares
Proceeds from shares issued $ 457,054 $ 1,049,586 $ 3,998,308 $ 10,640,331
Dividends reinvested 33,793 325 95,151 70,753
Cost of shares redeemed (92,820) (38,449) (3,477,049) (1,488,638)
- --------------------------------------------------------------------------------------------------------------------
Net change 398,027 1,011,462 616,410 9,222,446
- --------------------------------------------------------------------------------------------------------------------
Institutional shares
Proceeds from shares issued - - - -
Dividends reinvested - - - -
Cost of shares redeemed - - - -
- --------------------------------------------------------------------------------------------------------------------
Net change - - - -
- --------------------------------------------------------------------------------------------------------------------
CHANGE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ 398,027 $ 1,011,462 $ 616,410 $ 9,222,446
- --------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Standard shares
Issued 41,644 104,984 399,048 1,060,718
Reinvested 3,031 33 9,535 7,042
Redeemed (8,550) (3,660) (348,763) (148,149)
- --------------------------------------------------------------------------------------------------------------------
Net change 36,125 101,357 59,820 919,611
- --------------------------------------------------------------------------------------------------------------------
Institutional shares
Issued - - - -
Reinvested - - - -
Redeemed - - - -
- --------------------------------------------------------------------------------------------------------------------
Net change - - - -
- --------------------------------------------------------------------------------------------------------------------
CHANGE IN SHARES FROM
SHARE TRANSACTIONS 36,125 101,357 59,820 919,611
</Table>
(1) Commencement of operations.
See Financial Notes
40
<Page>
<Table>
<Caption>
INCOME FUND MONEY MARKET FUND
- --------------------------------------------------------------------------------------------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
12/31/03 YEAR ENDED 12/31/03 YEAR ENDED
(UNAUDITED) 06/30/03 (UNAUDITED) 06/30/03
- --------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,051,145 $ 2,597,821 $ 61,219 $ 844,631
Realized gains/losses on investments (22,670) 3,091,917 - -
Change in unrealized
appreciation/depreciation
on investments (1,043,169) 1,619,468 - -
- --------------------------------------------------------------------------------------------------------------------
Change in net assets from operations (14,694) 7,309,206 61,219 844,631
Dividends to shareholders:
From net investment income:
Standard shares (1,168,859) (2,770,272) (39,525) (710,661)
Institutional shares - - (21,694) (133,970)
From net realized gains on investments:
Standard shares - - - -
- --------------------------------------------------------------------------------------------------------------------
Total dividends (1,168,859) (2,770,272) (61,219) (844,631)
Change in net assets from capital transactions (4,751,055) (2,889,480) (13,830,435) (15,276,980)
CHANGE IN NET ASSETS $ (5,934,608) $ 1,649,454 $ (13,830,435) $ (15,276,980)
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period $ 69,137,481 $ 67,488,027 $ 115,533,193 $ 130,810,173
End of period $ 63,202,873 $ 69,137,481 $ 101,702,758 $ 115,533,193
- --------------------------------------------------------------------------------------------------------------------
Accumulated net investment income/loss $ (117,714) - - -
CAPITAL TRANSACTIONS
Standard shares
Proceeds from shares issued $ 3,646,649 $ 15,862,291 $ 38,498,860 $ 90,075,370
Dividends reinvested 1,073,616 2,594,958 65,696 742,720
Cost of shares redeemed (9,471,320) (21,346,729) (51,896,590) (100,447,452)
- --------------------------------------------------------------------------------------------------------------------
Net change (4,751,055) (2,889,480) (13,332,034) (9,629,362)
- --------------------------------------------------------------------------------------------------------------------
Institutional shares
Proceeds from shares issued - - $ 4,184,852 $ 3,128,338
Dividends reinvested - - 23,926 144,697
Cost of shares redeemed - - (4,707,179) (8,920,653)
- --------------------------------------------------------------------------------------------------------------------
Net change - - (498,401) (5,647,618)
- --------------------------------------------------------------------------------------------------------------------
CHANGE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ (4,751,055) $ (2,889,480) $ (13,830,435) $ (15,276,980)
- --------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS
Standard shares
Issued 363,341 1,597,468 38,498,860 90,075,370
Reinvested 106,970 262,370 65,696 742,730
Redeemed (940,027) (2,151,369) (51,896,590) (100,447,452)
- --------------------------------------------------------------------------------------------------------------------
Net change (469,716) (291,531) (13,332,034) (9,629,352)
- --------------------------------------------------------------------------------------------------------------------
Institutional shares
Issued - - 4,184,852 3,128,339
Reinvested - - 23,926 144,697
Redeemed - - (4,707,179) (8,920,653)
- --------------------------------------------------------------------------------------------------------------------
Net change - - (498,401) (5,647,617)
- --------------------------------------------------------------------------------------------------------------------
CHANGE IN SHARES FROM
SHARE TRANSACTIONS (469,716) (291,531) (13,830,435) (15,276,969)
<Caption>
PRIME MONEY MARKET FUND
- ------------------------------------------------------------------------------
FOR THE PERIOD
07/01/03(1) -
12/31/03
(UNAUDITED)
- ------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 855,722
Realized gains/losses on investments -
Change in unrealized
appreciation/depreciation
on investments -
- -------------------------------------------------------------------------
Change in net assets from operations 855,722
Dividends to shareholders:
From net investment income:
Standard shares (855,722)
Institutional shares -
From net realized gains on investments:
Standard shares -
- -------------------------------------------------------------------------
Total dividends (855,722)
Change in net assets from capital transactions 166,965,687
CHANGE IN NET ASSETS $ 166,965,687
- -------------------------------------------------------------------------
NET ASSETS
Beginning of period $ -
End of period $ 166,965,687
- -------------------------------------------------------------------------
Accumulated net investment income/loss -
CAPITAL TRANSACTIONS
Standard shares
Proceeds from shares issued $ 237,468,863
Dividends reinvested -
Cost of shares redeemed (70,503,176)
- -------------------------------------------------------------------------
Net change 166,965,687
- -------------------------------------------------------------------------
Institutional shares
Proceeds from shares issued -
Dividends reinvested -
Cost of shares redeemed -
- -------------------------------------------------------------------------
Net change -
- -------------------------------------------------------------------------
CHANGE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ 166,965,687
- -------------------------------------------------------------------------
SHARE TRANSACTIONS
Standard shares
Issued 237,468,863
Reinvested -
Redeemed (70,503,176)
- -------------------------------------------------------------------------
Net change 166,965,687
- -------------------------------------------------------------------------
Institutional shares
Issued -
Reinvested -
Redeemed -
- -------------------------------------------------------------------------
Net change -
- -------------------------------------------------------------------------
CHANGE IN SHARES FROM
SHARE TRANSACTIONS 166,965,687
</Table>
41
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
DIVIDENDS TO
SELECTED PER SHARE DATA INVESTMENT ACTIVITIES SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET NET REALIZED
VALUE, NET AND UNREALIZED TOTAL FROM FROM NET
BEGINNING INVESTMENT REDEMPTION GAINS/LOSSES INVESTMENT INVESTMENT
OF PERIOD INCOME/LOSS FEE ON INVESTMENTS OPERATIONS INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
300 FUND
STANDARD SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Period ended December 31, 2003(1) * $ 10.00 0.01 - 0.97 0.98 (0.01)
- -----------------------------------------------------------------------------------------------------------------------------------
CORE GROWTH FUND
STANDARD SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 16.44 (0.07) - 2.10 2.03 -
Year ended June 30, 2003 16.73 (0.04) - (0.25) (0.29) -
Year ended June 30, 2002 22.12 (0.09) - (5.30) (5.39) -
Year ended June 30, 2001 32.59 (0.16) - (9.01) (9.17) -
Year ended June 30, 2000 30.52 (0.22) - 4.08 3.86 -
Year ended June 30, 1999 23.46 (0.15) - 7.52 7.37 -
INSTITUTIONAL SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 13.52 - - 1.72 1.72 -
Year ended June 30, 2003 13.66 0.05 - (0.19) (0.14) -
Year ended June 30, 2002 17.94 0.04 - (4.32) (4.28) -
Year ended June 30, 2001 26.59 0.01 - (7.36) (7.35) -
Year ended June 30, 2000 25.02 - - 3.36 3.36 -
Year ended June 30, 1999 19.13 0.01 - 6.19 6.20 -
ADMINISTRATIVE SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 16.68 (0.03) - 2.13 2.10 -
Year ended June 30, 2003 16.91 0.01 - (0.24) (0.23) -
Year ended June 30, 2002 22.27 (0.01) - (5.35) (5.36) -
Year ended June 30, 2001 32.66 (0.03)(4) - (9.06) (9.09) -
Period ended June 30, 2000(5) 32.09 (0.01) - 0.58 0.57 -
- -----------------------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH FUND
STANDARD SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 10.96 (0.09) - 1.93 1.84 -
Year ended June 30, 2003 11.82 (0.17) - (0.69) (0.86) -
Year ended June 30, 2002 15.79 (0.20) - (3.77) (3.97) -
Year ended June 30, 2001 33.48 (0.21) - (11.41) (11.62) -
Year ended June 30, 2000 21.76 (0.30)(4) - 16.58 16.28 -
Year ended June 30, 1999 17.55 (0.19) - 6.19 6.00 -
INSTITUTIONAL SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 11.23 (0.08) - 2.00 1.92 -
Year ended June 30, 2003 12.02 (0.10) - (0.69) (0.79) -
Year ended June 30, 2002 15.96 (0.11)(4) - (3.83) (3.94) -
Year ended June 30, 2001 33.61 (0.12) - (11.46) (11.58) -
Period ended June 30, 2000 (6) 25.67 (0.11) - 12.61 12.50 -
ADMINISTRATIVE SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 11.11 (0.06) - 1.94 1.88 -
Year ended June 30, 2003 11.92 (0.10) - (0.71) (0.81) -
Year ended June 30, 2002 15.87 (0.13) - (3.82) (3.95) -
Year ended June 30, 2001 33.57 (0.17)(4) - (11.46) (11.63) -
Period ended June 30, 2000(5) 28.70 (0.10)(4) - 4.97 4.87 -
</Table>
(1) For the period August 29, 2003, commencement of operations, to December 31,
2003.
(2) Not annualized.
(3) Annualized.
* Unaudited.
See Financial Notes
42
<Page>
<Table>
<Caption>
DIVIDENDS TO
SELECTED PER SHARE DATA SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------
FROM NET ASSET
NET TOTAL VALUE, TOTAL
REALIZED DIVIDENDS TO END RETURN
GAINS SHAREHOLDERS OF PERIOD (%)
- ----------------------------------------------------------------------------------------------------------------
300 FUND
STANDARD SHARES
- ----------------------------------------------------------------------------------------------------------------
Period ended December 31, 2003(1) * - (0.01) $ 10.97 9.81(2)
- ----------------------------------------------------------------------------------------------------------------
CORE GROWTH FUND
STANDARD SHARES
- ----------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 18.47 12.35(2)
Year ended June 30, 2003 - - 16.44 (1.73)
Year ended June 30, 2002 - - 16.73 (24.37)
Year ended June 30, 2001 (1.30) (1.30) 22.12 (28.42)
Year ended June 30, 2000 (1.79) (1.79) 32.59 12.82
Year ended June 30, 1999 (0.31) (0.31) 30.52 31.58
INSTITUTIONAL SHARES
- ----------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 15.24 12.81(2)
Year ended June 30, 2003 - - 13.52 (1.02)
Year ended June 30, 2002 - - 13.66 (23.86)
Year ended June 30, 2001 (1.30) (1.30) 17.94 (27.98)
Year ended June 30, 2000 (1.79) (1.79) 26.59 13.67
Year ended June 30, 1999 (0.31) (0.31) 25.02 32.62
ADMINISTRATIVE SHARES
- ----------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 18.78 12.59(2)
Year ended June 30, 2003 - - 16.68 (1.36)
Year ended June 30, 2002 - - 16.91 (24.07)
Year ended June 30, 2001 (1.30) (1.30) 22.27 (28.11)
Period ended June 30, 2000(5) - - 32.66 1.78(2)
- ----------------------------------------------------------------------------------------------------------------
EMERGING GROWTH FUND
STANDARD SHARES
- ----------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 12.80 16.79(2)
Year ended June 30, 2003 - - 10.96 (7.28)
Year ended June 30, 2002 - - 11.82 (25.14)
Year ended June 30, 2001 (6.07) (6.07) 15.79 (37.52)
Year ended June 30, 2000 (4.56) (4.56) 33.48 82.19
Year ended June 30, 1999 (1.79) (1.79) 21.76 36.04
INSTITUTIONAL SHARES
- ----------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 13.15 17.10(2)
Year ended June 30, 2003 - - 11.23 (6.57)
Year ended June 30, 2002 - - 12.02 (24.69)
Year ended June 30, 2001 (6.07) (6.07) 15.96 (37.21)
Period ended June 30, 2000 (6) (4.56) (4.56) 33.61 55.02(2)
ADMINISTRATIVE SHARES
- ----------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 12.99 16.92(2)
Year ended June 30, 2003 - - 11.11 (6.80)
Year ended June 30, 2002 - - 11.92 (24.89)
Year ended June 30, 2001 (6.07) (6.07) 15.87 (37.43)
Period ended June 30, 2000(5) - - 33.57 16.97(2)
<Caption>
SELECTED PER SHARE DATA RATIOS AND SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
NET RATIO OF RATIO OF NET RATIO OF
ASSETS, EXPENSES TO INVESTMENT EXPENSES TO
END OF AVERAGE NET INCOME/LOSS AVERAGE NET PORTFOLIO
PERIOD ASSETS, NET OF TO AVERAGE NET ASSETS, PRIOR TO OF PERIOD
($ X 1,000) REIMBURSEMENT (%) ASSETS (%) REIMBURSEMENT (%) RATE (%)
- -----------------------------------------------------------------------------------------------------------------------------------
300 FUND
STANDARD SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Period ended December 31, 2003(1) * $ 4,446 0.90(3) 0.42(3) 2.82(3) 0.13
- -----------------------------------------------------------------------------------------------------------------------------------
CORE GROWTH FUND
STANDARD SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 311,486 1.51(3) (0.73)(3) 1.51(3) 147.67
Year ended June 30, 2003 285,339 1.37 (0.28) 1.53 183.75
Year ended June 30, 2002 326,793 1.34 (0.43) 1.44 76.40
Year ended June 30, 2001 472,779 1.34 (0.62) 1.42 44.95
Year ended June 30, 2000 699,399 1.49 (0.75) 1.52 20.04
Year ended June 30, 1999 578,286 1.58 (0.68) 1.58 18.04
INSTITUTIONAL SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 62,989 0.78(3) 0.02(3) 0.78(3) 147.67
Year ended June 30, 2003 63,571 0.69 0.36 0.76 183.75
Year ended June 30, 2002 85,140 0.68 0.23 0.73 76.40
Year ended June 30, 2001 123,912 0.68 0.04 0.74 44.95
Year ended June 30, 2000 180,779 0.74 0.00 0.74 20.04
Year ended June 30, 1999 98,705 0.83 0.05 0.83 18.04
ADMINISTRATIVE SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 2,702 1.09(3) (0.30)(3) 1.09(3) 147.67
Year ended June 30, 2003 2,426 1.00 0.09 1.06 183.75
Year ended June 30, 2002 2,029 0.94 (0.05) 1.01 76.40
Year ended June 30, 2001 1,964 0.94 (0.14) 5.63 44.95
Period ended June 30, 2000(5) 21 0.99(3) (0.27)(3) 101.59(3) 20.04
- -----------------------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH FUND
STANDARD SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 176,336 1.93(3) (1.49)(3) 1.93(3) 64.94
Year ended June 30, 2003 157,911 1.95 (1.56) 1.97 315.89
Year ended June 30, 2002 190,812 1.80 (1.39) 1.86 202.57
Year ended June 30, 2001 283,760 1.68 (1.09) 1.75 136.63
Year ended June 30, 2000 386,670 1.69 (1.09) 1.75 159.95
Year ended June 30, 1999 136,137 1.82 (1.20) 1.83 208.49
INSTITUTIONAL SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 3,716 1.29(3) (0.87)(3) 1.29(3) 64.94
Year ended June 30, 2003 5,379 1.25 (0.86) 1.28 315.89
Year ended June 30, 2002 6,428 1.20 (0.78) 1.26 202.57
Year ended June 30, 2001 19,676 1.30 (0.69) 1.36 136.63
Period ended June 30, 2000 (6) 16,284 1.24(3) (0.61)(3) 1.31(3) 159.95
ADMINISTRATIVE SHARES
- -----------------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 11,786 1.58(3) (1.13)(3) 1.58(3) 64.94
Year ended June 30, 2003 8,561 1.51 (1.13) 1.54 315.89
Year ended June 30, 2002 8,444 1.47 (1.07) 1.53 202.57
Year ended June 30, 2001 9,497 1.55 (0.96) 2.06 136.63
Period ended June 30, 2000(5) 8 1.55(3) (0.90)(3) 158.14(3) 159.95
</Table>
(4) Based on average shares outstanding.
(5) For the period February 4, 2000, commencement of operations, to June 30,
2000.
(6) For the period November 1, 1999, commencement of operations, to June 30,
2000.
43
<Page>
<Table>
<Caption>
DIVIDENDS
SELECTED PER SHARE DATA INVESTMENT ACTIVITIES TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED
NET ASSET AND UNREALIZED
VALUE, NET GAINS/LOSSES ON TOTAL FROM FROM NET
BEGINNING INVESTMENT REDEMPTION INVESTMENTS AND INVESTMENT INVESTMENT
OF PERIOD INCOME/LOSS FEE FOREIGN CURRENCIES OPERATIONS INCOME
- -------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE GROWTH FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 8.67 (0.06) - 1.97 1.91 -
Year ended June 30, 2003 9.18 (0.09) - (0.42) (0.51) -
Year ended June 30, 2002 9.52 (0.08) - (0.26) (0.34) -
Year ended June 30, 2001 11.23 (0.05) - (1.64) (1.69) -
Period ended June 30, 2000(3) 10.00 - - 1.23 1.23 -
- -------------------------------------------------------------------------------------------------------------------------
VALUE FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 8.64 (0.01) - 1.45 1.44 -
Year ended June 30, 2003 8.74 (0.05) - (0.05) (0.10) -
One month period ended June 30, 2002(4) 10.21 (0.01) - (1.46) (1.47) -
Year ended May 31, 2002 15.29 (0.08) - (3.57) (3.65) -
Year ended May 31, 2001 14.58 (0.07) - 2.70 2.63 -
Year ended May 31, 2000 14.03 (0.08) - 2.05 1.97 -
Year ended May 31, 1999 12.98 (0.08) - 1.95 1.87 -
- -------------------------------------------------------------------------------------------------------------------------
GLOBAL EQUITY FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 13.39 (0.06)(5) - 2.18 2.12 -
Year ended June 30, 2003 14.22 (0.03)(5) 0.02 (0.82) (0.83) -
Year ended June 30, 2002 18.31 (0.11)(5) 0.01 (3.99) (4.09) -
Year ended June 30, 2001 29.99 (0.16) - (9.61) (9.77) -
Year ended June 30, 2000 20.22 (0.22)(5) - 10.94 10.72 -
Year ended June 30, 1999 16.95 (0.12) - 3.86 3.74 -
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
- -------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 13.65 0.01(5) - 2.21 2.22 -
Year ended June 30, 2003 14.40 0.05(5) 0.02 (0.82) (0.75) -
Year ended June 30, 2002 18.46 (0.01)(5) 0.01 (4.06) (4.06) -
Year ended June 30, 2001 30.08 (0.05)(5) - (9.66) (9.71) -
Period ended June 30, 2000(6) 23.45 (0.05)(5) - 7.63 7.58 -
- -------------------------------------------------------------------------------------------------------------------------
ADMINISTRATIVE SHARES
- -------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 13.51 (0.01)(5) - 2.18 2.17 -
Year ended June 30, 2003 14.30 0.01(5) 0.02 (0.82) (0.79) -
Year ended June 30, 2002 18.38 (0.06)(5) 0.01 (4.03) (4.08) -
Year ended June 30, 2001 30.02 (0.11)(5) - (9.62) (9.73) -
Period ended June 30, 2000(7) 33.45 (0.06) - (3.37) (3.43) -
- -------------------------------------------------------------------------------------------------------------------------
BALANCED FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 10.47 0.02 - 1.08 1.10 (0.02)
Period ended June 30, 2003(8) 10.00 0.02 - 0.47 0.49 (0.02)
- -------------------------------------------------------------------------------------------------------------------------
ULTRA SHORT BOND FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 10.06 0.09 - (0.08) 0.01 (0.10)
Period ended June 30, 2003(9) 10.00 0.14(5) - 0.07 0.21 (0.15)
</Table>
(1) Not annualized.
(2) Annualized.
(3) Less than $0.005 per share.
(4) For the period July 1, 2003, commencement of operations, to
December 31, 2003.
* Unaudited.
See Financial Notes
44
<Page>
<Table>
<Caption>
RATIOS AND
SELECTED PER SHARE DATA DIVIDENDS TO SHAREHOLDERS SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------
NET
FROM NET ASSET ASSETS,
NET TOTAL VALUE, TOTAL END OF
REALIZED DIVIDENDS TO END RETURN PERIOD
GAINS SHAREHOLDERS OF PERIOD (%) ($ X 1,000)
- --------------------------------------------------------------------------------------------------------
SMALL CAP CORE GROWTH FUND
STANDARD SHARES
- --------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 10.58 22.03(1) $ 25,499
Year ended June 30, 2003 - - 8.67 (5.56) 17,821
Year ended June 30, 2002 - - 9.18 (3.57) 18,459
Year ended June 30, 2001 (0.02) (0.02) 9.52 (15.08) 15,503
Period ended June 30, 2000(3) - - 11.23 12.30(1) 8,397
- --------------------------------------------------------------------------------------------------------
VALUE FUND
STANDARD SHARES
- --------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 10.08 16.67(1) $ 20,513
Year ended June 30, 2003 - - 8.64 (1.14) 16,226
One month period ended June 30, 2002(4) - - 8.74 (14.40)(1) 21,060
Year ended May 31, 2002 (1.43) (1.43) 10.21 (25.58) 24,981
Year ended May 31, 2001 (1.92) (1.92) 15.29 20.71 14,378
Year ended May 31, 2000 (1.42) (1.42) 14.58 14.36 8,726
Year ended May 31, 1999 (0.82) (0.82) 14.03 15.43 4,611
- --------------------------------------------------------------------------------------------------------
GLOBAL EQUITY FUND
STANDARD SHARES
- --------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 15.51 15.83(1) $ 111,472
Year ended June 30, 2003 - - 13.39 (5.84)(1) 101,846
Year ended June 30, 2002 - - 14.22 (22.34) 135,881
Year ended June 30, 2001 (1.91) (1.91) 18.31 (33.69) 236,080
Year ended June 30, 2000 (0.95) (0.95) 29.99 53.27 354,818
Year ended June 30, 1999 (0.47) (0.47) 20.22 22.34 90,549
- --------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 15.87 16.26(1) $ 7,549
Year ended June 30, 2003 - - 13.65 (5.21) 6,688
Year ended June 30, 2002 - - 14.40 (21.99) 9,531
Year ended June 30, 2001 (1.91) (1.91) 18.46 (33.35) 16,475
Period ended June 30, 2000(6) (0.95) (0.95) 30.08 32.55(1) 12,544
- --------------------------------------------------------------------------------------------------------
ADMINISTRATIVE SHARES
- --------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - - $ 15.68 16.06(1) $ 2,555
Year ended June 30, 2003 - - 13.51 (5.52) 2,059
Year ended June 30, 2002 - - 14.30 (22.20) 2,207
Year ended June 30, 2001 (1.91) (1.91) 18.38 (33.52) 1,748
Period ended June 30, 2000(7) - - 30.02 (10.25)(1) 1
- --------------------------------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------------------------------
STANDARD SHARES
Six months ended December 31, 2003* (0.24) (0.26) $ 11.31 10.53(1) $ 1,555
Period ended June 30, 2003(8) - (0.02) 10.47 4.87(1) 1,061
- --------------------------------------------------------------------------------------------------------
ULTRA SHORT BOND FUND
STANDARD SHARES
- --------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - (0.10) $ 9.97 0.07(1) $ 9,769
Period ended June 30, 2003(9) - (0.15) 10.06 2.12(1) 9,252
<Caption>
SELECTED PER SHARE DATA RATIOS AND SUPPLEMENTAL DATA
---------------------------------------------------------------
RATIO OF RATIO OF NET RATIO OF
EXPENSES TO INVESTMENT EXPENSES TO
AVERAGE NET INCOME/LOSS AVERAGE NET PORTFOLIO
ASSETS, NET OF TO AVERAGE NET ASSETS, PRIOR TO TURNOVER
REIMBURSEMENT (%) ASSETS (%) REIMBURSEMENT (%) RATE (%)
- -------------------------------------------------------------------------------------------------------
SMALL CAP CORE GROWTH FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* 1.52(2) (1.37)(2) 1.52(2) 142.67
Year ended June 30, 2003 1.45 (1.12) 1.58 349.79
Year ended June 30, 2002 1.34 (0.93) 1.40 294.26
Year ended June 30, 2001 1.34 (0.57) 3.20 146.62
Period ended June 30, 2000(3) 1.49(2) 0.00(2) 5.98(2) 20.16
- -------------------------------------------------------------------------------------------------------
VALUE FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* 1.79(2) (0.14)(2) 1.79(2) 86.81
Year ended June 30, 2003 1.90 (0.62) 1.90 209.72
One month period ended June 30, 2002(4) 1.95(2) (1.33)(2) 2.05(2) 5.87
Year ended May 31, 2002 1.95 (1.04) 2.54 34.77
Year ended May 31, 2001 1.95 (0.65) 4.63 62.55
Year ended May 31, 2000 1.95 (0.68) 7.11 72.32
Year ended May 31, 1999 1.95 (0.79) 10.32 73.70
- -------------------------------------------------------------------------------------------------------
GLOBAL EQUITY FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* 1.96(2) (0.85)(2) 1.96(2) 32.30
Year ended June 30, 2003 1.91 (0.26) 1.91 42.05
Year ended June 30, 2002 1.84 (0.66) 1.84 132.82
Year ended June 30, 2001 1.82 (0.71) 1.82 151.95
Year ended June 30, 2000 1.82 (0.79) 1.83 120.69
Year ended June 30, 1999 1.96 (0.88) 1.96 64.07
- -------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
- -------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* 1.33(2) 0.18(2) 1.33(2) 32.30
Year ended June 30, 2003 1.26 0.42 1.26 42.05
Year ended June 30, 2002 1.27 (0.05) 1.27 132.82
Year ended June 30, 2001 1.39 (0.23) 1.42 151.95
Period ended June 30, 2000(6) 1.39(2) (0.25)(2) 1.43(2) 120.69
- -------------------------------------------------------------------------------------------------------
ADMINISTRATIVE SHARES
- -------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* 1.66(2) (0.18)(2) 1.66(2) 32.30
Year ended June 30, 2003 1.59 0.11 1.59 42.05
Year ended June 30, 2002 1.64 (0.39) 1.64 132.82
Year ended June 30, 2001 1.68 (0.48) 3.18 151.95
Period ended June 30, 2000(7) 1.68(2) (0.48)(2) 296.20(2) 120.69
- -------------------------------------------------------------------------------------------------------
BALANCED FUND STANDARD SHARES
- -------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* 1.30(2) 0.28(2) 5.92(2) 83.50
Period ended June 30, 2003(8) 1.30(2) 0.41(2) 16.73(2) 140.42
- -------------------------------------------------------------------------------------------------------
ULTRA SHORT BOND FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* 0.03(2) 1.78(2) 1.49(2) 52.31
Period ended June 30, 2003(9) 0.00(2) 2.29(2) 2.10(2) 56.04
</Table>
(6) For the period November 1, 1999, commencement of operations, to
June 30, 2000.
(7) For the period February 4, 2000, commencement of operations, to
June 30, 2000.
(8) For the period December 20, 2002, commencement of operations, to
June 30, 2003.
(9) For the period November 21, 2002, commencement of operations, to
June 30, 2003.
45
<Page>
<Table>
<Caption>
DIVIDENDS
SELECTED PER SHARE DATA INVESTMENT ACTIVITIES TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET NET REALIZED
VALUE, NET AND UNREALIZED TOTAL FROM FROM NET
BEGINNING INVESTMENT REDEMPTION GAINS/LOSSES INVESTMENT INVESTMENT
OF PERIOD INCOME/LOSS FEE ON INVESTMENTS OPERATIONS INCOME
- -----------------------------------------------------------------------------------------------------------------------
INCOME FUND
STANDARD SHARES
- -----------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 10.28 0.16 - (0.15) 0.01 (0.18)
Year ended June 30, 2003 9.62 0.37 - 0.69 1.06 (0.40)
Year ended June 30, 2002 10.28 0.58 - (0.66) (0.08) (0.58)
Year ended June 30, 2001 10.20 0.68 - 0.10 0.78 (0.70)
Year ended June 30, 2000 10.51 0.65 - (0.32) 0.33 (0.63)
Year ended June 30, 1999 11.03 0.59 - (0.50) 0.09 (0.59)
- -----------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
STANDARD SHARES
- -----------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 1.00 -(3) - - -(3) -(3)
Year ended June 30, 2003 1.00 0.01 - - 0.01 (0.01)
Year ended June 30, 2002 1.00 0.02 - - 0.02 (0.02)
Year ended June 30, 2001 1.00 0.05 - - 0.05 (0.05)
Year ended June 30, 2000 1.00 0.05 - - 0.05 (0.05)
Year ended June 30, 1999 1.00 0.04 - - 0.04 (0.04)
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
- -----------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* $ 1.00 -(3) - - -(3) -(3)
Year ended June 30, 2003 1.00 0.01 - - 0.01 (0.01)
Year ended June 30, 2002 1.00 0.02 - - 0.02 (0.02)
Year ended June 30, 2001 1.00 0.05 - - 0.05 (0.05)
Year ended June 30, 2000 1.00 0.05 - - 0.05 (0.05)
Year ended June 30, 1999 1.00 0.05 - - 0.05 (0.05)
- -----------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
STANDARD SHARES
- -----------------------------------------------------------------------------------------------------------------------
Period ended December 31, 2003(4)* $ 1.00 0.01 - - 0.01 (0.01)
- -----------------------------------------------------------------------------------------------------------------------
</Table>
(1) Not annualized.
(2) Annualized.
(3) Less than $0.005 per share.
(4) For the period July 1, 2003, commencement of operations, to
December 31, 2003.
* Unaudited.
46
<Page>
<Table>
<Caption>
SELECTED PER SHARE DATA DIVIDENDS TO SHAREHOLDERS RATIOS AND SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------
NET RATIO OF
FROM NET ASSET ASSETS, EXPENSES TO
NET TOTAL VALUE, TOTAL END OF AVERAGE NET
REALIZED DIVIDENDS TO END RETURN PERIOD ASSETS, NET OF
GAINS SHAREHOLDERS OF PERIOD (%) ($ X 1,000) REIMBURSEMENT (%)
- ---------------------------------------------------------------------------------------------------------------------
INCOME FUND
STANDARD SHARES
- ---------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - (0.18) $ 10.11 0.12(1) $ 63,203 1.43(2)
Year ended June 30, 2003 - (0.40) 10.28 11.28 69,137 1.37
Year ended June 30, 2002 - (0.58) 9.62 (0.87) 67,488 1.38
Year ended June 30, 2001 -(3) (0.70) 10.28 7.87 71,639 1.40
Year ended June 30, 2000 (0.01) (0.64) 10.20 3.35 61,836 1.45
Year ended June 30, 1999 (0.02) (0.61) 10.51 0.78 62,837 1.45
- ---------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
STANDARD SHARES
- ---------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - -(3) $ 1.00 0.03(1) $ 91,309 1.00(2)
Year ended June 30, 2003 - (0.01) 1.00 0.65 104,641 0.93
Year ended June 30, 2002 - (0.02) 1.00 1.71 114,271 0.92
Year ended June 30, 2001 - (0.05) 1.00 5.23 117,211 0.89
Year ended June 30, 2000 - (0.05) 1.00 4.67 112,700 1.17
Year ended June 30, 1999 - (0.04) 1.00 4.07 105,740 1.19
- --------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
- ---------------------------------------------------------------------------------------------------------------------
Six months ended December 31, 2003* - -(3) $ 1.00 0.20(1) $ 10,393 0.67(2)
Year ended June 30, 2003 - (0.01) 1.00 0.95 10,892 0.63
Year ended June 30, 2002 - (0.02) 1.00 1.97 16,539 0.67
Year ended June 30, 2001 - (0.05) 1.00 5.43 27,475 0.70
Year ended June 30, 2000 - (0.05) 1.00 5.04 23,370 0.81
Year ended June 30, 1999 - (0.05) 1.00 4.58 22,464 0.70
- ---------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
STANDARD SHARES
- ---------------------------------------------------------------------------------------------------------------------
Period ended December 31, 2003(4)* - (0.01) $ 1.00 0.55(1) $ 166,966 0.00(2)
- ---------------------------------------------------------------------------------------------------------------------
<Caption>
SELECTED PER SHARE DATA RATIOS AND SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------
RATIO OF NET RATIO OF
INVESTMENT EXPENSES TO
INCOME/LOSS AVERAGE NET PORTFOLIO
TO AVERAGE NET ASSETS, PRIOR TO TURNOVER
ASSETS (%) REIMBURSEMENT (%) RATE (%)
- -------------------------------------------------------------------------------------
INCOME FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------
Six months ended December 31, 2003* 3.16(2) 1.43(2) 26.41
Year ended June 30, 2003 3.80 1.37 195.73
Year ended June 30, 2002 5.77 1.38 54.05
Year ended June 30, 2001 6.55 1.48 60.53
Year ended June 30, 2000 6.34 1.47 52.96
Year ended June 30, 1999 5.50 1.49 44.07
- -------------------------------------------------------------------------------------
MONEY MARKET FUND
STANDARD SHARES
- -------------------------------------------------------------------------------------
Six months ended December 31, 2003* 0.08(2) 1.00(2) NA
Year ended June 30, 2003 0.65 0.93 NA
Year ended June 30, 2002 1.72 0.92 NA
Year ended June 30, 2001 5.08 0.89 NA
Year ended June 30, 2000 4.59 1.18 NA
Year ended June 30, 1999 4.00 1.24 NA
- -------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
- -------------------------------------------------------------------------------------
Six months ended December 31, 2003* 0.41(2) 0.67(2) NA
Year ended June 30, 2003 0.98 0.63 NA
Year ended June 30, 2002 1.95 0.67 NA
Year ended June 30, 2001 5.22 0.70 NA
Year ended June 30, 2000 4.93 0.82 NA
Year ended June 30, 1999 4.47 0.70 NA
- -------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
STANDARD SHARES
Period ended December 31, 2003(4) * 1.10(2) 0.30(2) NA
- -------------------------------------------------------------------------------------
</Table>
47
<Page>
FINANCIAL NOTES UNAUDITED
ORGANIZATION
Citizens Funds (the "Trust"), a Massachusetts Business Trust, is registered as
an open-end management investment company under the Investment Company Act of
1940, as amended (the "1940 Act"). The Trust offers the following funds
(individually a "fund," collectively the "funds"):
<Table>
<Caption>
FUND SHORT NAME FUND SHORT NAME
- -----------------------------------------------------------------------------------------------------------------------------
CITIZENS 300 FUND 300 Fund CITIZENS BALANCED FUND Balanced Fund
CITIZENS CORE GROWTH FUND Core Growth Fund CITIZENS ULTRA SHORT BOND FUND Ultra Short Bond Fund
CITIZENS EMERGING GROWTH FUND Emerging Growth Fund CITIZENS INCOME FUND Income Fund
CITIZENS SMALL CAP CORE GROWTH FUND Small Cap Core Growth Fund CITIZENS MONEY MARKET FUND Money Market Fund
CITIZENS VALUE FUND Value Fund CITIZENS PRIME MONEY MARKET FUND Prime Money Market Fund
CITIZENS GLOBAL EQUITY FUND Global Equity Fund
</Table>
The funds are authorized to issue an unlimited number of shares of beneficial
interest with no par value. The Core Growth Fund, Emerging Growth Fund and
Global Equity Fund currently offer three classes of shares: Standard shares,
Institutional shares and Administrative shares. The Money Market Fund offers two
classes of shares: Standard shares and Institutional shares. The 300 Fund, Small
Cap Core Growth Fund, Value Fund, Balanced Fund, Ultra Short Bond Fund and
Income Fund offer one class of shares: Standard shares. Prime Money Market Fund
offers one class of shares. Each class of shares in the funds has identical
rights and privileges except with respect to fees paid under class-specific
agreements, voting rights on matters affecting a single class of shares, and the
exchange privilege of each class of shares.
CITIZENS MONEY MARKET EXCHANGE
On July 2, 2003, the Money Market Fund transferred $113,739,102 of securities
and cash to the Prime Money Market Fund in exchange for 113,739,102 shares of
the Prime Money Market Fund. During the remainder of the period covered by this
report, the Money Market Fund invested substantially all of its investable
assets in the Prime Money Market Fund, an open-end management investment company
that has the same investment objective as the Money Market Fund. The percentage
of the Prime Money Market Fund owned by the Money Market Fund as of December 31,
2003 was approximately 59.9%. As of December 31, 2003, the Money Market Fund
invested approximately 98.3% of its investable assets in the Prime Money Market
Fund. The financial statements of the Prime Money Market Fund, including
Portfolio Holdings, are included elsewhere in this report and should be read in
conjunction with the financial statements of the Money Market Fund.
CITIZENS INTERNATIONAL GROWTH FUND REORGANIZATION
Under a plan of reorganization adopted by the Trust, all of the assets and
liabilities of the Citizens International Growth Fund were transferred to the
Standard shares of the Global Equity Fund. The reorganization, which qualified
as a tax-free exchange for federal income tax purposes, was completed on
December 19, 2003, following approval by shareholders at a special shareholder
meeting. Of the 324,197 shares voted, 266,733 affirmed, 43,590 voted against,
and 13,893 abstained. The following is a summary of shares outstanding, net
assets, net asset value per share issued, unrealized appreciation/depreciation,
and accumulated net realized loss immediately before and after the
reorganization:
48
<Page>
FINANCIAL NOTES UNAUDITED
<Table>
<Caption>
BEFORE REORGANIZATION AFTER REORGANIZATION
----------------------------------- --------------------
INTERNATIONAL GLOBAL GLOBAL
GROWTH FUND EQUITY FUND EQUITY FUND
- ----------------------------------------------------------------------------------------------------
Shares 433,044.353 7,637,623.361 7,843,039.517
Net assets $ 3,115,732 $ 116,037,295 $ 119,153,027
Net asset value:
Standard shares$ 7.19 $ 15.17 $ 15.17
Institutional shares NA $ 15.52 $ 15.52
Administrative shares NA $ 15.33 $ 15.33
Unrealized appreciation/depreciation $ 511,440 $ 11,275,289 $ 11,786,729
Accumulated net realized loss $ (928,080) $ (135,041,252) $ (135,969,332)
</Table>
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
funds in the preparation of their financial statements. The policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITIES VALUATION Equity securities are valued at the last sale price on the
primary exchange on which such securities are traded or on the principal
over-the-counter market on which such securities are traded, as of the close of
business on the day the securities are valued, or lacking any sales, at the last
available bid price for domestic securities and halfway between the bid and ask
price for international securities. Equity securities traded on the NASDAQ stock
market are valued at the NASDAQ official closing price. Fixed-income investments
generally are valued at the bid price for securities. Securities may also be
valued on the basis of valuations furnished by a pricing service that uses both
dealer-supplied valuations and valuations based upon analysis of market data or
other factors if these valuations are believed to more accurately reflect the
fair value of such securities. Investments for which market quotations are not
readily available are valued at fair value, using procedures determined in good
faith by the Board of Trustees. Short-term securities maturing within 60 days
and investments of the Prime Money Market Fund are valued at amortized cost,
which approximates fair value. Under the amortized cost method, premium or
discount, if any, is amortized or accreted, respectively, on a constant
(straight-line) basis to the maturity of the security. Investments in other
money market funds are valued at net asset value.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME Changes in holdings of
portfolio securities shall be reflected no later than in the first calculation
on the first business day following the trade date. The cost of securities sold
is determined on the identified cost basis, unless otherwise specified. Interest
income is recorded on an accrual basis and includes, where applicable, the
amortization or accretion of a premium or discount. Dividend income is recorded
on the ex-dividend date.
FOREIGN CURRENCY TRANSLATION The accounting records of the funds are maintained
in U.S. dollars. Investment securities and other assets and liabilities
denominated in a foreign currency are translated into U.S. dollars at the
current rate of exchange. Purchases and sales of securities, and income and
expenses, are translated into U.S. dollars at the prevailing rate of exchange on
the respective dates of such transactions. The changes in foreign exchange rates
on investments are not isolated on the Statement of Operations. Such
fluctuations are included with the net realized and unrealized gain or loss on
investments.
49
<Page>
FINANCIAL NOTES UNAUDITED
FOREIGN CURRENCY CONTRACTS The Global Equity Fund uses foreign currency
contracts to facilitate transactions in foreign-denominated securities. Losses
may arise from changes in the value of the foreign currency or if the
counterparties do not perform under the contract's terms. The U.S. dollar value
of foreign currency contracts is determined using the contractual currency
exchange rates established at the time of each trade.
REPURCHASE AGREEMENTS The funds may acquire repurchase agreements with an entity
that is a member of the Federal Reserve System, collateralized by instruments
issued by the U.S. government, its agencies or instrumentalities. The repurchase
price generally equals the price paid by a fund plus interest negotiated on the
basis of current short-term rates, which may be more or less than the rate on
the underlying securities. It is the funds' policy to receive collateral
securities of which the value, including accrued interest, is at least equal to
102% of the amount to be repaid to the funds under each agreement at its
maturity. Collateral subject to repurchase agreements is held by the funds'
custodian or another qualified custodian. If the counterparty defaults, and the
fair value of the collateral declines, realization of the collateral by the
funds may be delayed or limited.
RESTRICTED SECURITIES The funds are permitted to invest in privately placed
securities. These securities may be resold in transactions exempt from
registration, or to the public, if the securities are registered under the
Securities Act of 1933. Disposal of these securities may involve time-consuming
negotiations and expense, and the prompt sale at an acceptable price may be
difficult.
REDEMPTION FEE The Global Equity Fund charges a redemption fee of 2% (paid to
the fund) with respect to shares of the fund redeemed or exchanged within 60
days of purchase. The fee does not apply to shares purchased through the
reinvestment of dividends or other distributions, redemptions by the fund of
accounts below minimum balances, redemptions due to shareholder death or
disability, or certain omnibus accounts or retirement plans. For the six months
ended December 31, 2003, the Global Equity Fund collected $19,870 in redemption
fees. These fees are included in the "change in net assets from capital
transactions" amounts in the Statements of Changes in Net Assets.
DIVIDENDS TO SHAREHOLDERS The 300 Fund, Core Growth Fund, Emerging Growth Fund,
Small Cap Core Growth Fund, Value Fund and Global Equity Fund declare and
distribute dividends from net investment income, if any, to shareholders
annually. The Balanced Fund declares and distributes dividends from net
investment income to shareholders quarterly. The Income Fund declares and
distributes dividends from net investment income to shareholders monthly.
Dividends from net investment income, if any, for the Ultra Short Bond Fund,
Money Market Fund and Prime Money Market Fund are declared daily and paid
monthly. The funds' net realized gains, if any, are distributed to shareholders
at least annually.
Additional dividends may also be paid to the funds' shareholders to the extent
necessary to avoid federal excise tax on certain undistributed income and net
realized gains. The amount of dividends from net investment income and net
realized gains are determined in accordance with federal income tax regulations,
which may differ from GAAP. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature (i.e., reclassification of market discounts, gain/loss, paydowns, and
distributions), such amounts are reclassified to capital; temporary differences
do not require reclassification.
OFFERING COSTS Expenses incurred in connection with the offering of fund shares
(such as drafting of registration statements and agreements) for the 300 Fund,
Balanced Fund, Ultra Short Bond Fund and Prime Money Market Fund were paid by
the funds and are being amortized over a 12-month period starting with each
fund's commencement of operations.
50
<Page>
FINANCIAL NOTES UNAUDITED
FEDERAL INCOME TAXES Each fund is a separate taxable entity for federal tax
purposes. Each fund has qualified and intends to qualify each year as a
"regulated investment company" under Subchapter M of the Internal Revenue Code,
as amended, and distributes substantially all of its taxable net investment
income and net realized gains, if any, to its shareholders.
FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT MANAGEMENT FEE Citizens Advisers, Inc. (the "Adviser") serves as
Adviser to each of the funds. Under the terms of the management contract, the
Adviser is paid a fee that is computed daily based on an annual rate for each
fund's average daily net assets. Those rates are as follows:
<Table>
<Caption>
FUND FEE RATE
- ------------------------------------------
300 Fund 0.20%
Core Growth Fund 0.50%
Emerging Growth Fund 1.00%
Small Cap Core Growth Fund 0.50%
Value Fund 0.70%
Global Equity Fund 1.00%
Balanced Fund 0.65%
Ultra Short Bond Fund 0.35%
Income Fund 0.65%
Money Market Fund 0.35%*
Prime Money Market Fund 0.25%
</Table>
*For any period that the Money Market Fund invests its assets in Prime Money
Market Fund, the total management fee payable to the Adviser under the
management contract with respect to the fund shall not exceed 0.35% per annum of
the fund's average net assets minus the fund's allocable share of the management
fees paid to the Adviser from Prime Money Market Fund.
SSgA Funds Management, Inc. serves as the Sub-Adviser for the Global Equity
Fund. For its services, the Sub-Adviser receives a fee computed daily based on
an annual rate of the fund's average daily net assets, paid by the Adviser as
follows:
<Table>
<Caption>
FUND FEE RATE
- --------------------------------------------------------------------------------------
Global Equity Fund 0.35% of the first $500 million, 0.25% thereafter
</Table>
DISTRIBUTION FEE Citizens Securities, Inc. (the "Distributor") is a wholly owned
subsidiary of the Adviser and serves as the funds' Distributor. Pursuant to Rule
12b-1 under the 1940 Act, the Trust's shareholders have adopted a separate
distribution plan with respect to the funds' Standard and Administrative shares
pursuant to which the funds, except the Prime Money Market Fund and Money Market
Fund, compensate the Distributor for services in an amount equal to 0.25% per
annum of average annual net assets represented by such shares.
ADMINISTRATIVE AND SHAREHOLDER SERVICE FEES The Adviser, with whom certain
officers and trustees are affiliated, performs administrative duties for the
Trust under a separate administrative contract, which provides for the
reimbursement of out-of-pocket expenses as well as fees for services rendered.
In accordance with the terms of the administrative contract, fees and expenses
are accrued daily based on average daily net assets of each fund at the annual
rate of 0.15%. For the six months ended December 31, 2003, no fees or expenses
were charged to the Prime Money Market Fund.
In addition, Citizens Securities, Inc., a wholly owned subsidiary of the
Adviser, provides a number of administrative services to the Trust, relating
primarily to shareholder services and communications, and is paid an account fee
for providing such services and communications for each of the individual funds
with the exception of the Core Growth Fund, Standard shares. The Core Growth
Fund, Standard shares may be charged a shareholder service fee of up to 0.35%
based on the average daily net assets of the class. For the six months ended
December 31, 2003, a fee of 0.25% was charged.
51
<Page>
FINANCIAL NOTES UNAUDITED
TRANSFER AGENCY, FUND ACCOUNTING AND CUSTODY BISYS Fund Services Ohio, Inc.
provides transfer agency and fund accounting services to the funds pursuant to
certain fee arrangements. Transfer agent expenses also include the cost of
services rendered by third parties to provide sub-transfer agency services, with
the following exception: Citizens Advisers provides transfer agency services for
the Prime Money Market Fund. Fifth Third Bank acts as custodian for the funds.
Custody expenses may be incurred or offset from fees or credits arising from
cash balances maintained on deposit.
TRUSTEE FEES Certain officers and Trustees of the Trust are "interested
persons," as defined in the 1940 Act, of the Adviser. Currently, each Trustee
who is not an "interested person" receives an annual retainer of $12,000 and
$1,250 for each day's attendance at a Trustee meeting. The independent trustees
have elected a Chair, who receives an additional annual retainer of $5,000; and
a Vice Chair, Audit Committee Chair and Social Responsibility Committee Chair,
who each receives an additional annual retainer of $2,500.
EXPENSE ALLOCATION Expenses directly attributable to a fund are charged to that
fund. Expenses not directly attributable to a fund are allocated proportionately
among various or all funds within the Trust in relation to the net assets of
each fund or on another reasonable basis. Expenses specific to a class are
charged to that class.
FEE REDUCTIONS AND REIMBURSEMENTS For the six months ended December 31, 2003,
the Adviser has voluntarily agreed to limit the total expenses, exclusive of
taxes, brokerage commissions and extraordinary expenses, for certain funds to
the extent they exceeded the following limits:
<Table>
<Caption>
FUND EXPENSE LIMITATION
- ------------------------------------------
300 FUND 0.90%
BALANCED FUND 1.30%
ULTRA SHORT BOND FUND 0.10%*
PRIME MONEY MARKET FUND 0.00%
</Table>
*For the period July 1, 2003 to October 27, 2003, the Adviser voluntarily waived
all fees and reimbursed all expenses for the Ultra Short Bond Fund.
The expense limitations above are voluntary and may be removed by the Adviser at
any time.
FEES PAID INDIRECTLY During the period, certain funds participated in a directed
brokerage program in which the funds utilize recaptured commissions on
securities transactions to pay for, in whole or in part, certain expenses of the
funds.
INVESTMENT TRANSACTIONS
The following summarizes purchases and sales of investment securities, other
than short-term investments, by fund for the six months ended December 31, 2003:
<Table>
<Caption>
FUND PURCHASES SALES
- -------------------------------------------------------------
300 FUND $ 1,784,609 $ 16,500
CORE GROWTH FUND 536,075,244 545,427,060
EMERGING GROWTH FUND 118,411,253 130,008,527
SMALL CAP CORE GROWTH FUND 34,190,233 30,951,039
VALUE FUND 17,005,391 15,465,871
GLOBAL EQUITY FUND $ 36,254,609 $ 42,732,068
BALANCED FUND 1,322,244 991,984
ULTRA SHORT BOND FUND 5,576,161 4,163,361
INCOME FUND 16,511,577 24,788,233
</Table>
SUBSEQUENT EVENT
On February 16, 2004, the Trustees approved the withdrawal of the assets of the
Money Market Fund from the Prime Money Market Fund.
52
<Page>
FINANCIAL NOTES UNAUDITED
SHAREHOLDER SERVICES
AT CITIZENS FUNDS, we want our investors to know how much we value their
business. That's why we offer a comprehensive range of services that includes
everything from attentive telephone representatives to an informative Web site.
EXCHANGES BETWEEN CITIZENS FUNDS* You can move your money from any one of our
funds to another.
RETIREMENT INVESTING We offer investors the opportunity to invest in a variety
of IRAs, including Traditional, Roth and Rollover. Citizens Funds are also
available for 401(k), 403(b), SEP and SIMPLE retirement plans.
AUTOMATIC INVESTMENT PLAN Invest automatically on a monthly or quarterly basis
with payroll deduction or electronic transfer from your bank.
UNPARALLELED CUSTOMER SERVICE Our representatives are well-trained professionals
whose goal is to satisfy most requests during the first phone call.
Representatives are available from 9 AM to 6 PM (ET) Monday - Friday at
800.223.7010.
www.citizensfunds.com Our Web site offers daily fund prices and performance,
fund and manager profiles, fund prospectuses and applications, shareholder
activism updates, online account access and transactions and much more.
INTELLIGENT COMMUNICATIONS Citizens Funds was a pioneer of the plain English
prospectus well before it became the standard for the rest of the mutual fund
industry. We try to bring that same spirit of innovation, plain-speak and
respect for our shareholders to all our communications.
PROXY VOTING A description of the policies and procedures that the funds use to
determine how to vote proxies relating to portfolio securities is available
without charge, upon request, by calling 800.223.7010, on our Web site, and on
the SEC's Web site at http://www.sec.gov.
*Citizens Global Equity Fund charges a redemption fee of 2% on shares redeemed
or exchanged within 60 days of purchase.
<Page>
[CITIZENS FUNDS (R) LOGO]
TRUSTEES
Judy Belk
Walter D. Bristol, Jr.
Sophia Collier
Jeannie H. Diefenderfer
Pablo S. Eisenberg
Orlando Hernandez
Mitchell A. Johnson
Martha S. Pope
DISTRIBUTOR
Citizens Securities, Inc.
230 Commerce Way
Portsmouth, NH 03801
800.223.7010
603.436.5152
MANAGER
Citizens Advisers, Inc.
230 Commerce Way
Portsmouth, NH 03801
800.223.7010
603.436.5152
CUSTODIAN
Fifth Third Bank
Cincinnati, OH 45263
TRANSFER AND
ACCOUNTING AGENT
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Bingham McCutchen LLP
Boston, MA 02110
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
Columbus, OH 43215
FUNDAMENTALLY STRONG. SOCIALLY RESPONSIBLE.
Citizens Funds are distributed by Citizens Securities, Inc.,
Portsmouth, NH 03801 and are available through such popular mutual fund
supermarkets as Charles Schwab's Mutual Fund OneSource(R) and Fidelity
Investments' FundsNetwork(R).
Citizens Funds(R) is a trademark of Citizens Advisers, Inc.
This report is intended for shareholders of Citizens Funds and is not
authorized for distribution to other persons unless accompanied or preceded
by a prospectus. Please visit www.citizensfunds.com or call 800.223.7010 for
a prospectus that contains complete details of fees and expenses and should
be read carefully before investing.
(C) 2004 Citizens Advisers, Inc.
[RECYCLE LOGO] Printed on chemical-free 100% post-consumer
paper with soy-based inks. SAR 2/04
<Page>
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not Applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not Applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not Applicable.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial
officer have concluded, based on their evaluation of the registrant's
disclosure controls and procedures as conducted within 90 days of the filing
date of this report, that these disclosure controls and procedures are
adequately designed and are operating affectively to ensure that
information required to be disclosed by the registrant on Form N-CSR is
(i) accumulated and communicated to the investment company's management,
including its certifying officers, to allow timely decisions regarding
required disclosure; and (ii) recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange
Commission's rules and forms.
<Page>
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 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.
ITEM 11. EXHIBITS.
(a)(1) Not applicable at this time.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) 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.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Citizens Funds
By: /s/ Sophia Collier
-------------------
Sophia Collier
President
Date: March 08, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Sophia Collier
-------------------
Sophia Collier
President
Date: March 08, 2004
By: /s/ Sean P. Driscoll
-------------------
Sean P. Driscoll
Treasurer
Date: March 08, 2004