UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05775
WM Trust II
(Exact name of registrant as specified in charter)
1201 Third Avenue, 22nd Floor, Seattle, WA 98101
(Address of principal executive offices) (Zip code)
Jeffrey L. Lunzer
1201 Third Avenue, 22nd Floor, Seattle, WA 98101
(Name and address of agent for service)
Registrant's telephone number, including area code: (206) 461-3800
Date of fiscal year end: October 31, 2004
Date of reporting period: April 30, 2004
Item 1. Reports to Stockholders
[logo] WM
GROUPofFUNDS
W M G R O U P
O F F U N D S
Common sense. Uncommon solutions.
[photo]
SEMI-ANNUAL REPORT
April 30, 2004
Equity Funds
REIT Fund
Equity Income Fund
Growth & Income Fund
West Coast Equity Fund
Mid Cap Stock Fund
Growth Fund
Small Cap Value Fund
Small Cap Growth Fund
International Growth Fund
Fixed-Income Funds
Short Term Income Fund
U.S. Government Securities Fund
Income Fund
High Yield Fund
Municipal Funds
Tax-Exempt Bond Fund
California Municipal Fund
California Insured
Intermediate Municipal Fund
Table of Contents
Message from the President....................1
Portfolio of Investments......................2
Statements of Assets and Liabilities.........54
Statements of Operations.....................58
Statements of Changes in Net Assets..........60
Statements of Changes in Net
Assets - Capital Stock Activity..............64
Financial Highlights.........................68
Notes to Financial Statements................85
Not FDIC Insured
- --------------------------------------------------
May Lose Value * Not a Deposit * No Bank Guarantee
Not Insured by any Federal Government Agency
[PHOTO] Dear Shareholder,
Since our last shareholder report, the U.S. economy has regained its
economic foothold. Corporate profits have improved in an ongoing environment
of low inflation and low interest rates. Corporations are showing renewed
confidence that is evident through increased capital spending and hiring,
accompanied by higher worker productivity. The creation of more jobs in the
service and manufacturing sectors is a welcome sign that can have a positive
proliferating impact on the economy. We are also seeing the development of
more favorable factors outside the U.S. that can drive stronger economic
growth.
These developments were reflected in the performance of the stock market,
which gained 6% for the six-month period ended April 30, 2004.(1) Among the
best-performing equity sectors were energy (+22%), telecommunications
(+13%), health care (+10%), and consumer staples (+10%).(2) Corporate bonds,
particularly lower-quality high-yield issues in sectors such as insurance
(+10%), financial institutions (+9%), and basic industry (+8%), were among
the top-performing assets during the period.(3)
Asset Allocation Shows Its Benefits
What makes the investment business so challenging is that we continually see
new positive trends that are invariably accompanied by negative news. This
combination of events can rapidly alter our well-researched projections. As
a result, we continue to embrace asset allocation, which studies have shown
accounts for over 90% of an investment's return.(4) In our judgement, this
is the most appropriate and time-tested investment philosophy. Our approach
to investing is reflected in such variables as portfolio allocations, bond
maturities, corporate sector and asset class exposures, equity styles, and
capitalizations.
As evidence of how important asset allocation is to our investment approach,
we launched the WM Small Cap Value Fund, which invests in smaller-sized,
undervalued firms, on March 1 of this year. With this new fund, we can now
invest in up to 13 separate asset classes within our Strategic Asset
Management (SAM) Portfolios. It also provides us with greater investment
opportunities and strengthens our ability to spread assets across more
well-researched and widely traded investment styles.
Celebrating 65 Years of Shared Values
This year marks the 65th anniversary of our WM Equity Income Fund, which
traces its origins back to 1939 when it was launched as the Composite Bond
Fund, one of the first 50 mutual funds in the U.S. Much has changed since
then. Today there are over 8,000 U.S. mutual funds,(5) but few can claim a
similar heritage and institutional dedication to shareholder interests.
I am honored to be only the fourth president of WM Advisors during its
65-year history. My mentor, Lee Sahlin, upheld the corporate culture
developed under his predecessor, George Yancey, who worked alongside the
founder of the Composite Research & Management Company, R. M. "Pete"
Williams. My predecessors had long tenures because they took the values of
long-term investing, consistency of purpose, trust, and integrity very
seriously. I am proud that these values are still at work today at our
staff, management, and board levels.
The WM Group of Funds Board of Trustees is comprised of 11 experienced
individuals, eight of whom are independent of fund management. The remaining
three trustees (myself included) are termed "interested persons" who are
connected with fund management or Washington Mutual, Inc. Acting together,
the board members represent shareholder interests by striving to ensure that
the funds' managers, distributor, transfer agent, and other service
providers meet their fiduciary responsibilities.
A Time-Tested Investment Approach
As the mutual fund industry approaches its 80th anniversary, we note that
over a history with nearly the same longevity, WM Advisors has built a
venerable record of successful investment management. Our investment
philosophy has been tested over decades that have included some
extraordinary historic and economic events. We have persevered while also
achieving some exceptional results and recognition for our achievements from
national publications, such as Barron's.
I believe the key to this success can be distilled from our investment
process, consistent approach, and teamwork. Our overall approach is aligned
with the goals of our shareholders, so we operate with a common purpose.
This process has worked exceptionally well for the past 65 years, and we are
confident it can produce mutual benefits in the years ahead.
Sincerely,
/s/ William G. Papesh
William G. Papesh
President
<FN>
(1) As measured by the S&P 500 Index. Indices are unmanaged, and individuals
cannot invest directly in an index.
(2) Source: Bloomberg News.
(3) Source: Lehman Brothers.
(4) Source: Ibbotson Associates.
(5) Source: Investment Company Institute.
1
portfolio of investments
REIT FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
REAL ESTATE INVESTMENT TRUSTS - 86.1%
Diversified - 4.6%
163,000 iStar Financial Inc. $ 5,793
105,000 Vornado Realty Trust 5,297
----------
Total Diversified 11,090
----------
Health Care - 4.5%
255,000 Health Care Property Investors, Inc. 6,094
135,000 Healthcare Realty Trust, Inc. 4,840
----------
Total Health Care 10,934
----------
Industrial/Office - 25.4%
Industrial - 6.2%
137,200 AMB Property Corporation 4,157
42,100 CenterPoint Properties Trust 3,035
266,000 ProLogis 7,826
----------
15,018
----------
Mixed - 2.0%
168,000 Duke Realty Corporation 4,899
----------
Office - 17.2%
65,000 Alexandria Real Estate Equities, Inc. 3,693
109,100 Arden Realty, Inc. 3,079
114,000 Boston Properties, Inc. 5,358
145,000 CarrAmerica Realty Corporation 4,134
460,000 Corporate Office Properties Trust 9,361
435,000 Equity Office Properties Trust 10,949
117,000 SL Green Realty Corporation 4,774
----------
41,348
----------
Total Industrial/Office 61,265
----------
Lodging/Resorts - 5.2%
236,500 FelCor Lodging Trust, Inc.+ 2,365
180,000 Hospitality Properties Trust 7,034
251,400 Host Marriott Corporation+ 2,992
----------
Total Lodging/Resorts 12,391
----------
Mortgage/Financial - 2.5%
215,300 Annaly Mortgage Management, Inc. 3,725
122,000 Friedman, Billings, Ramsey Group, Inc.,
Class A 2,257
----------
Total Mortgage/Financial 5,982
----------
Residential - 12.2%
Apartments - 12.2%
216,000 Apartment Investment & Management
Company, Class A 6,085
151,000 AvalonBay Communities, Inc. 7,494
373,000 Equity Residential 10,242
303,000 United Dominion Realty Trust, Inc. 5,439
----------
Total Residential 29,260
----------
Value
Shares (000s)
------ ------
Retail - 22.8%
Regional Malls - 16.3%
445,000 General Growth Properties, Inc. $ 12,064
217,000 Macerich Company 9,086
194,000 Mills Corporation 7,876
213,000 Simon Property Group, Inc. 10,269
----------
39,295
----------
Shopping Centers - 6.5%
237,000 Developers Diversified Realty Corporation 7,762
184,000 Kimco Realty Corporation 7,864
----------
15,626
----------
Total Retail 54,921
----------
Self Storage - 2.9%
116,000 Public Storage, Inc. 4,848
65,000 Shurgard Storage Centers, Inc., Class A 2,164
----------
Total Self Storage 7,012
----------
Specialty - 6.0%
290,000 Capital Automotive REIT 8,158
215,000 Plum Creek Timber Company, Inc. 6,355
----------
Total Specialty 14,513
----------
Total Real Estate Investment Trusts
(Cost $180,495) 207,368
----------
COMMON STOCKS - 8.4%
Consumer Discretionary - 6.4%
Consumer Durables & Apparel - 2.6%
221,500 D.R. Horton, Inc. 6,379
----------
Hotels, Restaurants & Leisure - 3.8%
158,000 Mandalay Resort Group 9,077
----------
Total Consumer Discretionary 15,456
----------
Financials - 2.0%
Insurance - 2.0%
134,200 Fidelity National Financial, Inc. 4,912
----------
Total Common Stocks
(Cost $14,191) 20,368
----------
See Notes to Financial Statements.
2
portfolio of investments (continued)
REIT FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
REPURCHASE AGREEMENT - 5.4%
(Cost $13,056)
$ 13,056 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $13,057,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$13,321,000) $ 13,056
----------
TOTAL INVESTMENTS (Cost $207,742*) 99.9% 240,792
OTHER ASSETS AND LIABILITIES (Net) 0.1 183
----- ----------
NET ASSETS 100.0% $ 240,975
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
+ Non-income producing security.
See Notes to Financial Statements.
3
portfolio of investments
EQUITY INCOME FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - 82.0%
Consumer Discretionary - 14.2%
Automobiles & Components - 4.5%
440,000 General Motors Corporation** $ 20,865
260,000 Genuine Parts Company 9,308
292,000 Magna International Inc., Class A 23,039
100,000 MI Developments, Inc., Class A 2,580
----------
55,792
----------
Consumer Durables & Apparel - 3.2%
457,500 D.R. Horton, Inc. 13,176
830,000 Mattel, Inc. 14,077
167,000 Nike Inc., Class B** 12,015
----------
39,268
----------
Hotels, Restaurants & Leisure - 5.1%
310,000 Carnival Corporation** 13,228
635,000 Mandalay Resort Group** 36,481
475,000 McDonald's Corporation 12,934
----------
62,643
----------
Retailing - 1.4%
262,000 May Department Stores Company 8,069
237,000 Sears, Roebuck & Company 9,492
----------
17,561
----------
Total Consumer Discretionary 175,264
----------
Consumer Staples - 7.9%
Food & Staples Retailing - 2.4%
318,000 Supervalu Inc. 9,791
657,000 Wal-Mart de Mexico SA de CV, ADR** 19,250
----------
29,041
----------
Food, Beverage & Tobacco - 4.7%
278,000 Altria Group, Inc. 15,396
460,000 ConAgra Foods, Inc. 13,289
380,000 Diageo PLC, Sponsored ADR** 20,710
99,000 Hershey Foods Corporation 8,800
----------
58,195
----------
Household & Personal Products - 0.8%
97,000 Procter & Gamble Company 10,258
----------
Total Consumer Staples 97,494
----------
Energy - 7.2%
415,000 Baker Hughes Inc. 15,222
226,000 BP PLC, Sponsored ADR 11,955
136,600 ChevronTexaco Corporation 12,499
182,000 ConocoPhillips Company 12,977
165,000 Royal Dutch Petroleum Company (F)** 8,029
121,000 Schlumberger Ltd. 7,082
340,117 Valero Energy Corporation 21,686
----------
Total Energy 89,450
----------
Value
Shares (000s)
------ ------
Financials - 22.3%
Banks - 6.7%
315,048 Bank of America Corporation $ 25,358
249,999 Countrywide Financial Corporation 14,825
148,000 PNC Financial Services Group, Inc. 7,859
310,200 TCF Financial Corporation 15,371
240,000 U.S. Bancorp 6,154
240,000 Wells Fargo & Company 13,550
----------
83,117
----------
Diversified Financials - 7.3%
400,000 Allied Capital Corporation** 9,488
494,333 Citigroup Inc. 23,773
238,500 Fannie Mae 16,390
177,000 Franklin Resources, Inc. 9,705
344,000 J.P. Morgan Chase & Company 12,934
195,000 Morgan Stanley 10,021
155,000 T. Rowe Price Group, Inc. 7,948
----------
90,259
----------
Insurance - 8.3%
535,000 ACE Ltd. 23,454
375,000 AFLAC Inc. 15,836
339,000 Allstate Corporation 15,560
330,000 Fidelity National Financial, Inc. 12,078
400,000 HCC Insurance Holdings, Inc. 12,808
290,000 XL Capital Ltd., Class A 22,142
----------
101,878
----------
Total Financials 275,254
----------
Health Care - 6.5%
Health Care Equipment & Services - 1.0%
240,000 Becton Dickinson & Company** 12,132
----------
Pharmaceuticals & Biotechnology - 5.5%
202,300 Abbott Laboratories 8,905
395,000 Bristol-Myers Squibb Company 9,915
220,000 Johnson & Johnson 11,887
192,000 Merck & Company, Inc. 9,024
675,000 Mylan Laboratories Inc. 15,464
365,000 Pfizer Inc. 13,052
----------
68,247
----------
Total Health Care 80,379
----------
Industrials - 7.4%
Capital Goods - 6.6%
306,000 Boeing Company 13,063
112,500 Emerson Electric Company 6,775
180,000 General Dynamics Corporation 16,852
500,000 General Electric Company 14,975
244,000 Honeywell International Inc. 8,437
160,000 Northrop Grumman Corporation 15,880
195,000 Tyco International Ltd.** 5,353
----------
81,335
----------
See Notes to Financial Statements.
4
portfolio of investments (continued)
EQUITY INCOME FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - (continued)
Industrials - (continued)
Transportation - 0.8%
145,000 United Parcel Service, Inc., Class B $ 10,172
----------
Total Industrials 91,507
----------
Information Technology - 7.6%
Communications Equipment - 1.9%
523,000 Harris Corporation 23,561
----------
Computers & Peripherals - 1.4%
430,000 Hewlett-Packard Company 8,471
94,000 International Business Machines Corporation 8,288
----------
16,759
----------
Electronic Equipment & Instruments - 3.5%
1,195,000 AU Optronics Corporation, ADR** 25,669
370,000 Diebold, Inc. 17,053
----------
42,722
----------
Software - 0.8%
386,000 Computer Associates International, Inc. 10,349
----------
Total Information Technology 93,391
----------
Materials - 3.8%
245,000 Alcoa Inc. 7,534
250,700 Cemex SA de CV, Sponsored ADR 7,383
249,000 Dow Chemical Company 9,883
68,000 E.I. Du Pont de Nemours & Company 2,921
470,000 Monsanto Company 16,257
55,000 PPG Industries, Inc. 3,262
----------
Total Materials 47,240
----------
Telecommunication Services - 2.2%
265,000 Alltel Corporation 13,340
80,000 Metromedia Fiber Network, Inc., Class A+ 0***
115,000 SBC Communications Inc. 2,863
301,000 Verizon Communications Inc. 11,360
----------
Total Telecommunication Services 27,563
----------
Utilities - 2.9%
301,000 FPL Group, Inc. 19,150
205,000 Pinnacle West Capital Corporation 8,007
282,000 Southern Company** 8,110
----------
Total Utilities 35,267
----------
Total Common Stocks
(Cost $841,849) 1,012,809
----------
REAL ESTATE INVESTMENT TRUSTS - 6.5%
196,000 AMB Property Corporation 5,939
157,500 Apartment Investment & Management Company,
Class A 4,437
74,000 Arden Realty, Inc. 2,088
45,000 CarrAmerica Realty Corporation 1,283
180,000 Corporate Office Properties Trust 3,663
Value
Shares (000s)
------ ------
73,000 Developers Diversified Realty Corporation $ 2,391
81,000 Duke Realty Corporation 2,362
258,000 Equity Office Properties Trust 6,494
228,000 Equity Residential 6,261
342,000 General Growth Properties, Inc. 9,271
239,000 Health Care Property Investors, Inc. 5,712
130,000 Hospitality Properties Trust 5,080
35,000 Kimco Realty Corporation 1,496
90,000 Macerich Company 3,768
179,900 Plum Creek Timber Company, Inc. 5,318
110,500 ProLogis 3,251
103,000 Shurgard Storage Centers, Inc., Class A 3,430
157,000 Simon Property Group, Inc. 7,569
----------
Total Real Estate Investment Trusts
(Cost $65,906) 79,813
----------
Principal
Amount
(000s)
- ---------
CONVERTIBLE SECURITIES - 1.6%
Convertible Bonds and Notes - 1.6%
$ 5,500 RadiSys Corporation, Conv. Sub. Note,
5.500% due 08/15/2007 5,246
8,000 TriQuint Semiconductor, Inc., Conv. Sub.
Note, 4.000% due 03/01/2007 7,930
6,500 Vitesse Semiconductor Corporation, Conv.
Sub. Deb., 4.000% due 03/15/2005 6,467
----------
Total Convertible Bonds and Notes
(Cost $16,955) 19,643
----------
FIXED INCOME SECURITIES - 1.7%
Corporate Bonds and Notes - 1.6%
1,500 Aetna Inc., Company Guarantee,
7.625% due 08/15/2026 1,688
1,250 American Home Products Corporation, Deb.,
7.250% due 03/01/2023 1,342
4,000 ERAC USA Finance Company, Note,
7.350% due 06/15/2008++ 4,495
1,000 Medpartners Inc., Sr. Note,
7.375% due 10/01/2006 1,095
500 Merrill Lynch & Company, Inc., Note,
6.375% due 10/15/2008 547
4,000 TELUS Corporation, Note,
8.000% due 06/01/2011 4,646
2,000 Texas-New Mexico Power Company, Sr. Note,
6.250% due 01/15/2009 2,062
2,000 Time Warner Inc., Deb.,
9.150% due 02/01/2023 2,504
1,000 Westinghouse Electric Corporation, Deb.,
7.875% due 09/01/2023 1,169
----------
Total Corporate Bonds and Notes
(Cost $17,428) 19,548
----------
See Notes to Financial Statements.
5
portfolio of investments (continued)
EQUITY INCOME FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
FIXED INCOME SECURITIES - (continued)
Collateralized Mortgage Obligations (CMO) - 0.1%
(Cost $799)
$ 798 Reilly Mortgage FHA, Series 1982,
(Partial default),
7.430% due 08/01/2022 $ 798
----------
U.S. Government Agency Mortgage-Backed
Securities - 0.0% +++
Federal Home Loan Mortgage Corporation
(FHLMC) - 0.0% +++
478 6.500% due 09/01/2030 498
256 7.000% due 09/01/2030 270
----------
Total U.S. Government Agency
Mortgage-Backed Securities
(Cost $712) 768
----------
Total Fixed Income Securities
(Cost $18,939) 21,114
----------
Shares
------
WARRANTS - 0.0% +++
(Cost $0)
4,500 V2 Music Holdings PLC,
Expires 05/07/2008+,++ 0***
----------
Principal
Amount Value
(000s) (000s)
- --------- ------
REPURCHASE AGREEMENT - 7.6%
(Cost $94,215)
$ 94,215 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $94,222,000 on
05/03/2004, (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$96,129,000) $ 94,215
----------
SHORT-TERM INVESTMENT - 10.3%
(Cost $127,388)
127,388 Mellon GSL DBT II
Collateral Fund ++++ 127,388
----------
TOTAL INVESTMENTS (Cost $1,165,252*) 109.7% 1,354,982
OTHER ASSETS AND LIABILITIES (Net) (9.7) (120,112)
----- ----------
NET ASSETS 100.0% $1,234,870
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2004, and have
an aggregate market value of $122,413,000, representing 9.9% of the
total net assets of the Fund (Collateral Value $127,388,000).
*** Value of security is less than $500.
+ Non-income producing security.
++ Security acquired in a transaction exempt from registration under Rule
144A of the Securities Act of 1933.
+++ Amount represents less than 0.1% of the net assets.
++++ Represents investment purchased with cash collateral for securities
loaned.
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
ADR -- American Depository Receipt
(F) -- Foreign Shares
FHA -- Federal Housing Authority
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
6
portfolio of investments
GROWTH & INCOME FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - 93.5%
Consumer Discretionary - 10.6%
Consumer Durables & Apparel - 1.3%
1,564,000 Mattel, Inc. $ 26,525
----------
Hotels, Restaurants & Leisure - 3.5%
1,603,000 Carnival Corporation** 68,400
----------
Media - 5.8%
803,999 Comcast Corporation, Class A+ 24,201
770,000 Comcast Corporation, Special Class A+** 22,322
2,555,300 Liberty Media Corporation, Class A+ 27,955
982,000 Viacom Inc., Class B 37,954
----------
112,432
----------
Total Consumer Discretionary 207,357
----------
Consumer Staples - 10.5%
Food & Staples Retailing - 3.2%
577,000 Costco Wholesale Corporation+ 21,609
2,376,000 Kroger Company+ 41,580
----------
63,189
----------
Food, Beverage & Tobacco - 1.7%
623,000 PepsiCo Inc. 33,947
----------
Household & Personal Products - 5.6%
669,000 Avon Products, Inc. 56,196
487,000 Kimberly-Clark Corporation 31,874
192,000 Procter & Gamble Company 20,304
----------
108,374
----------
Total Consumer Staples 205,510
----------
Energy - 7.1%
701,000 BP PLC, Sponsored ADR 37,083
645,000 Exxon Mobil Corporation 27,445
590,000 Royal Dutch Petroleum Company (F)** 28,709
354,000 Schlumberger Ltd. 20,720
655,000 Unocal Corporation 23,606
----------
Total Energy 137,563
----------
Financials - 23.0%
Banks - 9.7%
937,917 Bank of America Corporation 75,493
664,000 PNC Financial Services Group, Inc. 35,258
767,000 Wachovia Corporation 35,090
782,000 Wells Fargo & Company 44,152
----------
189,993
----------
Diversified Financials - 7.3%
887,000 Citigroup Inc. 42,656
815,000 Freddie Mac 47,596
1,402,000 J.P. Morgan Chase & Company 52,715
----------
142,967
----------
Value
Shares (000s)
------ ------
Insurance - 6.0%
507,600 ACE Ltd. $ 22,253
1,152,000 Allstate Corporation 52,877
576,000 American International Group Inc. 41,271
----------
116,401
----------
Total Financials 449,361
----------
Health Care - 15.2%
Health Care Equipment & Services - 5.0%
738,000 Baxter International Inc. 23,358
712,000 Cardinal Health Inc. 52,154
351,000 Guidant Corporation 22,116
----------
97,628
----------
Pharmaceuticals & Biotechnology - 10.2%
928,000 Bristol-Myers Squibb Company 23,293
569,000 Johnson & Johnson 30,743
477,000 Merck & Company, Inc. 22,419
2,484,500 Mylan Laboratories Inc. 56,920
1,316,000 Pfizer Inc. 47,060
293,000 Teva Pharmaceutical Industries Ltd.,
Sponsored ADR** 18,037
----------
198,472
----------
Total Health Care 296,100
----------
Industrials - 8.2%
Capital Goods - 8.2%
954,000 Boeing Company 40,726
784,000 General Electric Company 23,481
1,381,000 Honeywell International Inc. 47,755
1,770,000 Tyco International Ltd.** 48,586
----------
Total Industrials 160,548
----------
Information Technology - 13.8%
Communications Equipment - 2.1%
2,255,000 Motorola, Inc.** 41,154
----------
Computers & Peripherals - 3.5%
1,358,000 Hewlett-Packard Company 26,753
462,000 International Business Machines
Corporation 40,734
----------
67,487
----------
IT Services - 2.6%
1,137,000 First Data Corporation 51,609
----------
Semiconductors & Semiconductor Equipment - 1.4%
1,047,000 Intel Corporation 26,939
----------
Software - 4.2%
1,366,000 Computer Associates International, Inc. 36,622
1,784,000 Microsoft Corporation 46,331
----------
82,953
----------
Total Information Technology 270,142
----------
See Notes to Financial Statements.
7
portfolio of investments (continued)
GROWTH & INCOME FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - (continued)
Materials - 0.4%
272,000 Alcoa Inc. $ 8,364
----------
Telecommunication Services - 1.3%
978,000 SBC Communications Inc. 24,352
----------
Utilities - 3.4%
453,000 FPL Group, Inc. 28,820
774,000 NiSource Inc. 15,604
552,000 Pinnacle West Capital Corporation 21,561
----------
Total Utilities 65,985
----------
Total Common Stocks
(Cost $1,447,713) 1,825,282
----------
Principal
Amount Value
(000s) (000s)
- --------- ------
REPURCHASE AGREEMENT - 6.3%
(Cost $123,021)
$ 123,021 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $123,021,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$125,520,000) $ 123,021
----------
SHORT-TERM INVESTMENT - 10.4%
(Cost $203,692)
203,692 Mellon GSL DBT II
Collateral Fund++ 203,692
----------
TOTAL INVESTMENTS (Cost $1,774,426*) 110.2% 2,151,995
OTHER ASSETS AND LIABILITIES (Net) (10.2) (200,261)
----- ----------
NET ASSETS 100.0% $1,951,734
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2004, and have
an aggregate market value of $195,491,000, representing 10.0% of the
total net assets of the Fund (Collateral Value $203,692,000).
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities
loaned.
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
ADR -- American Depository Receipt
(F) -- Foreign Shares
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
8
portfolio of investments
WEST COAST EQUITY FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - 93.1%
Consumer Discretionary - 16.4%
Automobiles & Components - 2.2%
827,900 Monaco Coach Corporation $ 21,583
116,200 Superior Industries International, Inc. 3,960
----------
25,543
----------
Consumer Durables & Apparel - 3.8%
181,900 Columbia Sportswear Company+ 9,684
164,000 KB Home 11,305
523,600 Mattel, Inc. 8,880
200,000 Nike Inc., Class B** 14,390
----------
44,259
----------
Hotels, Restaurants & Leisure - 3.6%
887,100 Hilton Hotels Corporation 15,516
92,700 Jack in the Box Inc.+ 2,510
402,700 Starbucks Corporation+ 15,649
1,239,585 WestCoast Hospitality Corporation+ 8,243
----------
41,918
----------
Media - 5.3%
344,400 Getty Images, Inc.+** 18,804
227,200 Knight-Ridder, Inc.** 17,594
33,500 McClatchy Company, Class A 2,379
481,300 Univision Communications Inc., Class A+** 16,292
297,500 Walt Disney Company 6,852
----------
61,921
----------
Retailing - 1.5%
832,225 Building Materials Holding Corporation 13,682
240,500 Hollywood Entertainment Corporation+ 3,237
128,400 Restoration Hardware, Inc.+ 747
----------
17,666
----------
Total Consumer Discretionary 191,307
----------
Consumer Staples - 3.3%
Food & Staples Retailing - 2.9%
495,640 Costco Wholesale Corporation+ 18,562
888,800 Kroger Company+ 15,554
----------
34,116
----------
Household & Personal Products - 0.4%
88,200 Estee Lauder Companies Inc., Class A 4,031
----------
Total Consumer Staples 38,147
----------
Energy - 5.6%
390,500 Apache Corporation 16,350
299,400 ChevronTexaco Corporation 27,395
386,000 Nabors Industries Ltd.+** 17,123
89,100 Occidental Petroleum Corporation 4,206
----------
Total Energy 65,074
----------
Value
Shares (000s)
------ ------
Financials - 18.6%
Banks - 13.4%
284,350 Bank of America Corporation $ 22,887
343,900 Banner Corporation 8,849
127,800 City National Corporation** 7,879
207,000 East West Bancorp, Inc. 11,660
349,100 Greater Bay Bancorp** 9,904
128,300 KeyCorp 3,810
64,900 Pacific Capital Bancorp 2,381
943,200 U.S. Bancorp** 24,184
32,800 United PanAm Financial Corporation+ 472
853,414 Washington Federal, Inc. 19,936
784,316 Wells Fargo & Company 44,282
----------
156,244
----------
Diversified Financials - 2.9%
956,600 Charles Schwab Corporation 9,843
255,000 Citigroup Inc. 12,263
30,000 Countrywide Financial Corporation** 1,779
169,300 Franklin Resources, Inc. 9,283
14,032 Piper Jaffray Companies, Inc.+ 679
----------
33,847
----------
Insurance - 2.3%
167,900 RenaissanceRe Holdings Ltd. 8,847
288,815 StanCorp Financial Group, Inc. 17,869
----------
26,716
----------
Total Financials 216,807
----------
Health Care - 12.9%
Health Care Equipment & Services - 4.8%
200,000 Applera Corporation-Applied Biosystems
Group 3,714
126,800 Caremark Rx, Inc.+** 4,292
90,060 Health Net, Inc.+ 2,291
1,616,200 OraSure Technologies, Inc.+ 13,592
83,400 ResMed Inc.+ 4,110
727,363 SonoSite, Inc.+ 15,653
135,000 Varian Medical Systems, Inc.+ 11,589
----------
55,241
----------
Pharmaceuticals & Biotechnology - 8.1%
209,500 Allergan, Inc.** 18,446
239,039 Amgen, Inc.+ 13,451
36,000 Amylin Pharmaceuticals, Inc.+ 806
1,311,800 Corixa Corporation+** 7,674
351,500 Dendreon Corporation+ 4,570
478,375 EDEN Bioscience Corporation+ 478
109,000 Genentech, Inc.+** 13,385
229,720 ICOS Corporation+ 7,349
86,000 Neurocrine Biosciences, Inc.+ 5,644
456,000 Pfizer Inc. 16,307
181,400 Watson Pharmaceuticals, Inc.+ 6,460
----------
94,570
----------
Total Health Care 149,811
----------
See Notes to Financial Statements.
9
portfolio of investments (continued)
WEST COAST EQUITY FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - (continued)
Industrials - 13.8%
Capital Goods - 10.4%
594,333 Boeing Company $25,372
170,800 Cascade Corporation 3,556
188,800 Dionex Corporation+ 9,634
511,930 Electro Scientific Industries, Inc.+ 10,464
874,600 Greenbrier Companies, Inc.+ 14,781
125,000 Northrop Grumman Corporation 12,406
494,587 PACCAR Inc. 27,924
227,450 Precision Castparts Corporation 10,238
143,100 Simpson Manufacturing Company, Inc. 7,464
----------
121,839
----------
Commercial Services & Supplies - 1.1%
456,900 Robert Half International Inc.+** 12,460
----------
Transportation - 2.3%
351,110 Alaska Air Group, Inc.+** 7,770
477,120 Expeditors International of
Washington, Inc.** 19,176
----------
26,946
----------
Total Industrials 161,245
----------
Information Technology - 19.1%
Communications Equipment - 1.1%
644,500 Cisco Systems, Inc.+ 13,451
----------
Computers & Peripherals - 2.3%
1,192,500 Advanced Digital Information Corporation+ 12,592
647,000 Hewlett-Packard Company 12,746
129,000 InFocus Corporation+ 1,054
----------
26,392
----------
Electronic Equipment & Instruments - 1.6%
496,235 Microvision, Inc.+** 4,218
507,700 Tektronix, Inc. 15,028
----------
19,246
----------
Internet Software & Services - 1.0%
1,821,300 Primus Knowledge Solutions, Inc.+ 4,517
977,000 WatchGuard Technologies, Inc.+ 6,800
----------
11,317
----------
Semiconductors & Semiconductor Equipment - 6.1%
240,000 Applied Materials, Inc.+ 4,375
442,200 Credence Systems Corporation+** 4,926
326,825 FEI Company+ 6,530
765,900 Intel Corporation 19,706
96,300 KLA-Tencor Corporation+ 4,013
752,480 Lattice Semiconductor Corporation+ 5,358
454,800 LSI Logic Corporation+ 3,384
1,105,400 Pixelworks, Inc.+** 19,764
476,140 TriQuint Semiconductor, Inc.+ 2,614
----------
70,670
----------
Value
Shares (000s)
------ ------
Software - 7.0%
332,000 Actuate Corporation+ $ 1,086
322,600 Adobe Systems Inc.** 13,336
52,400 Electronic Arts Inc.+ 2,652
351,450 Fair Isaac Corporation 11,851
1,225,978 Microsoft Corporation** 31,839
378,800 ONYX Software Corporation+ 1,364
281,100 Quest Software, Inc.+** 3,162
425,308 RadiSys Corporation+ 7,940
338,300 Siebel Systems, Inc.+ 3,478
292,900 Sybase, Inc.+ 5,009
----------
81,717
----------
Total Information Technology 222,793
----------
Materials - 3.4%
905,930 Oregon Steel Mills, Inc.+ 7,728
588,240 Schnitzer Steel Industries, Inc., Class A 15,453
285,700 Weyerhaeuser Company 16,913
----------
Total Materials 40,094
----------
Total Common Stocks
(Cost $838,613) 1,085,278
----------
REAL ESTATE INVESTMENT TRUSTS - 2.2%
163,200 AMB Property Corporation 4,945
550,200 Plum Creek Timber Company, Inc. 16,264
150,400 Shurgard Storage Centers, Inc., Class A 5,008
----------
Total Real Estate Investment Trusts
(Cost $23,976) 26,217
----------
Principal
Amount
(000s)
- ---------
REPURCHASE AGREEMENT - 4.4%
(Cost $50,710)
$ 50,710 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $50,714,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$51,740,000) 50,710
----------
SHORT-TERM INVESTMENT - 6.1%
(Cost $71,339)
71,339 Mellon GSL DBT II
Collateral Fund ++ 71,339
----------
TOTAL INVESTMENTS (Cost $984,638*) 105.8% 1,233,544
OTHER ASSETS AND LIABILITIES (Net) (5.8) (67,787)
----- ----------
NET ASSETS 100.0% $1,165,757
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2004, and have
an aggregate market value of $68,263,000, representing 5.9% of the total
net assets of the Fund (Collateral Value $71,339,000).
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities
loaned.
See Notes to Financial Statements.
10
portfolio of investments
MID CAP STOCK FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - 91.3%
Consumer Discretionary - 14.9%
Automobiles & Components - 1.4%
85,100 Magna International Inc., Class A $ 6,714
54,800 Superior Industries International, Inc. 1,868
----------
8,582
----------
Consumer Durables & Apparel - 4.8%
447,500 Jones Apparel Group, Inc. 16,378
717,500 Mattel, Inc. 12,169
----------
28,547
----------
Hotels, Restaurants & Leisure - 3.9%
100,000 Mandalay Resort Group** 5,745
138,000 Papa John's International, Inc.+** 4,616
330,000 Yum! Brands, Inc.+ 12,801
----------
23,162
----------
Retailing - 4.8%
280,200 Neiman Marcus Group Inc., Class A 13,629
386,200 Tiffany & Company 15,062
----------
28,691
----------
Total Consumer Discretionary 88,982
----------
Consumer Staples - 4.4%
Food, Beverage & Tobacco - 3.1%
304,750 Dean Foods Company+ 10,234
98,000 Hershey Foods Corporation 8,711
----------
18,945
----------
Household & Personal Products - 1.3%
167,000 Estee Lauder Companies Inc., Class A 7,633
----------
Total Consumer Staples 26,578
----------
Energy - 7.6%
301,500 Baker Hughes Inc. 11,059
186,000 Devon Energy Corporation 11,383
291,500 Nabors Industries Ltd.+** 12,931
234,500 Tidewater Inc. 6,615
106,500 Unocal Corporation 3,839
----------
Total Energy 45,827
----------
Financials - 19.2%
Banks - 6.2%
328,050 Charter One Financial, Inc. 10,947
295,550 GreenPoint Financial Corporation 11,526
88,900 North Fork Bancorporation, Inc.** 3,300
233,800 TCF Financial Corporation 11,585
----------
37,358
----------
Diversified Financials - 5.6%
362,300 A.G. Edwards, Inc. 13,257
154,400 Ambac Financial Group, Inc. 10,654
156,750 Countrywide Financial Corporation 9,295
----------
33,206
----------
Value
Shares (000s)
------ ------
Insurance - 7.4%
342,420 Fidelity National Financial, Inc. $ 12,532
488,700 HCC Insurance Holdings, Inc. 15,648
132,500 MGIC Investment Corporation** 9,755
148,800 PMI Group, Inc. 6,403
----------
44,338
----------
Total Financials 114,902
----------
Health Care - 10.6%
Health Care Equipment & Services - 8.5%
217,200 AmerisourceBergen Corporation** 12,574
264,900 Covance Inc.+ 8,938
175,900 Express Scripts, Inc., Class A+** 13,604
426,582 IMS Health Inc.** 10,771
92,000 Universal Health Services, Inc., Class B 4,039
10,200 WellPoint Health Networks, Inc.+ 1,139
----------
51,065
----------
Pharmaceuticals & Biotechnology - 2.1%
534,225 Mylan Laboratories Inc. 12,239
----------
Total Health Care 63,304
----------
Industrials - 10.1%
Capital Goods - 6.8%
450,800 Federal Signal Corporation 8,205
380,400 Lincoln Electric Holdings, Inc. 11,994
63,900 Lockheed Martin Corporation 3,048
120,000 PACCAR Inc. 6,775
229,200 Teleflex Inc. 10,463
----------
40,485
----------
Commercial Services & Supplies - 2.4%
53,000 HON INDUSTRIES, Inc. 1,961
435,800 Republic Services, Inc. 12,560
----------
14,521
----------
Transportation - 0.9%
257,200 Alaska Air Group, Inc.+ 5,692
----------
Total Industrials 60,698
----------
Information Technology - 15.0%
Computers & Peripherals - 1.6%
378,400 Electronics for Imaging, Inc.+ 9,604
----------
Electronic Equipment & Instruments - 1.6%
153,800 Arrow Electronics, Inc.+ 3,888
123,100 Diebold, Inc. 5,674
----------
9,562
----------
IT Services - 2.0%
398,500 Acxiom Corporation 9,221
199,300 Convergys Corporation+ 2,894
----------
12,115
----------
See Notes to Financial Statements.
11
portfolio of investments (continued)
MID CAP STOCK FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - (continued)
Information Technology - (continued)
Semiconductors & Semiconductor Equipment - 2.6%
547,000 Microchip Technology Inc. $ 15,327
----------
Software - 7.2%
192,100 Adobe Systems Inc.** 7,941
667,700 BMC Software Inc.+ 11,551
584,900 PeopleSoft Inc.+ 9,873
453,000 Siebel Systems, Inc.+ 4,657
335,000 Synopsys, Inc.+ 8,955
----------
42,977
----------
Total Information Technology 89,585
----------
Materials - 3.9%
342,500 Cabot Corporation 11,576
237,500 Valspar Corporation 11,792
----------
Total Materials 23,368
----------
Telecommunication Services - 0.5%
86,300 United States Cellular Corporation+ 2,957
----------
Utilities - 5.1%
169,200 FPL Group, Inc. 10,765
395,700 NiSource Inc.** 7,977
308,100 Pinnacle West Capital Corporation 12,034
----------
Total Utilities 30,776
----------
Total Common Stocks
(Cost $435,701) 546,977
----------
REAL ESTATE INVESTMENT TRUST - 0.5%
(Cost $2,965)
106,000 General Growth Properties, Inc. 2,874
----------
Principal
Amount Value
(000s) (000s)
- --------- ------
REPURCHASE AGREEMENT - 9.2%
(Cost $55,207)
$ 55,207 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $55,211,000 on
05/03/2004, (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$56,329,000) $ 55,207
----------
SHORT-TERM INVESTMENT - 3.8%
(Cost $22,979)
22,979 Mellon GSL DBT II
Collateral Fund ++ 22,979
----------
TOTAL INVESTMENTS (Cost $516,852*) 104.8% 628,037
OTHER ASSETS AND LIABILITIES (Net) (4.8) (29,001)
----- ----------
NET ASSETS 100.0% $ 599,036
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2004, and have
an aggregate market value of $22,172,000, representing 3.7% of the total
net assets of the Fund (Collateral Value $22,979,000).
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities
loaned.
See Notes to Financial Statements.
12
portfolio of investments
GROWTH FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - 93.5%
Consumer Discretionary - 15.7%
Consumer Durables & Apparel - 0.4%
42,200 Coach, Inc.+ $ 1,798
76,700 Ethan Allen Interiors Inc. 3,188
29,500 Tupperware Corporation 553
----------
5,539
----------
Hotels, Restaurants & Leisure - 2.0%
181,900 Carnival Corporation** 7,762
247,015 Hilton Hotels Corporation 4,320
108,605 McDonald's Corporation 2,957
191,200 Royal Caribbean Cruises Ltd.** 7,749
45,400 Starwood Hotels & Resorts Worldwide Inc. 1,806
16,950 Yum! Brands, Inc.+ 658
----------
25,252
----------
Media - 8.9%
72,019 Cablevision Systems Corporation-New York
Group, Class A+** 1,572
238,300 Clear Channel Communications, Inc.** 9,887
729,600 Comcast Corporation, Special Class A+** 21,151
62,300 Cox Communications Inc., Class A+** 2,037
38,000 Fox Entertainment Group, Inc., Class A+ 1,058
289,715 Gemstar-TV Guide International, Inc.+ 1,619
350,856 Liberty Media Corporation, Class A+ 3,838
79,800 New York Times Company, Class A 3,656
279,600 News Corporation Ltd., Sponsored ADR** 10,222
65,900 Omnicom Group Inc. 5,240
1,236,060 Time Warner Inc.+ 20,791
184,935 Univision Communications Inc., Class A+** 6,260
625,745 Viacom Inc., Class B 24,185
17,800 Walt Disney Company 410
33,300 XM Satellite Radio Holdings Inc., Class A+** 798
----------
112,724
----------
Retailing - 4.4%
59,300 Bed Bath & Beyond Inc.+ 2,201
48,600 Best Buy Company, Inc. 2,637
41,200 Chico's FAS, Inc.+** 1,678
22,700 eBay Inc.+ 1,812
77,000 Federated Department Stores, Inc. 3,773
39,800 Foot Locker, Inc. 955
271,300 Gap, Inc.** 5,972
204,685 Home Depot, Inc. 7,203
83,300 Limited, Inc. 1,719
50,350 Lowe's Companies, Inc. 2,621
22,200 PETCO Animal Supplies, Inc.+ 652
89,500 PETsMART, Inc. 2,479
236,960 Staples, Inc. 6,104
387,985 Target Corporation 16,827
----------
56,633
----------
Total Consumer Discretionary 200,148
----------
Value
Shares (000s)
------ ------
Consumer Staples - 7.2%
Food & Staples Retailing - 1.9%
244,965 Costco Wholesale Corporation+ $ 9,174
54,000 Sysco Corporation 2,066
218,900 Wal-Mart Stores Inc. 12,477
----------
23,717
----------
Food, Beverage & Tobacco - 3.3%
47,200 Altria Group, Inc. 2,614
244,100 Anheuser-Busch Companies, Inc. 12,508
13,100 Archer-Daniels-Midland Company 230
36,500 Bunge Ltd. 1,352
140,800 Coca-Cola Company 7,120
11,800 Hershey Foods Corporation 1,049
304,500 PepsiCo Inc. 16,592
----------
41,465
----------
Household & Personal Products - 2.0%
69,275 Alberto-Culver Company, Class B 3,267
12,900 Avon Products, Inc. 1,063
80,700 Clorox Company 4,179
118,200 Estee Lauder Companies Inc., Class A 5,403
12,100 Kimberly-Clark Corporation 792
105,400 Procter & Gamble Company 11,146
----------
25,850
----------
Total Consumer Staples 91,032
----------
Energy - 4.8%
69,600 Amerada Hess Corporation 4,951
148,340 BJ Services Company+ 6,601
39,500 BP PLC, Sponsored ADR 2,090
51,500 Burlington Resources Inc. 3,464
88,500 EnCana Corporation** 3,462
463,240 Exxon Mobil Corporation 19,711
181,315 Halliburton Company 5,403
115,035 Kinder Morgan Management LLC+ 4,268
14,800 Murphy Oil Corporation 1,014
96,300 Schlumberger Ltd. 5,636
52,300 Total SA, Sponsored ADR 4,818
----------
Total Energy 61,418
----------
Financials - 9.5%
Banks - 0.7%
156,500 Bank One Corporation 7,726
43,500 Charter One Financial, Inc. 1,452
----------
9,178
----------
Diversified Financials - 6.9%
385,225 American Express Company 18,857
69,000 Ameritrade Holding Corporation+ 845
47,300 Bear Stearns Companies Inc.** 3,791
587,700 Charles Schwab Corporation 6,047
533,249 Citigroup Inc. 25,644
See Notes to Financial Statements.
13
portfolio of investments (continued)
GROWTH FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - (continued)
Financials - (continued)
Diversified Financials - (continued)
56,695 Fannie Mae $ 3,896
123,600 J.P. Morgan Chase & Company 4,647
71,400 MBNA Corporation 1,741
78,500 Merrill Lynch & Company, Inc. 4,257
356,085 Morgan Stanley 18,299
----------
88,024
----------
Insurance - 1.9%
57,055 Allstate Corporation 2,619
181,600 American International Group Inc. 13,012
11,700 Progressive Corporation 1,024
62,800 Prudential Financial, Inc. 2,759
60,700 XL Capital Ltd., Class A 4,634
----------
24,048
----------
Total Financials 121,250
----------
Health Care - 18.3%
Health Care Equipment & Services - 6.5%
102,600 Aetna Inc. 8,490
46,700 Alcon, Inc. 3,467
43,165 Anthem, Inc.+** 3,824
105,700 Applera Corporation-Applied Biosystems
Group 1,963
75,800 Boston Scientific Corporation+ 3,122
206,735 Caremark Rx, Inc.+** 6,998
19,500 Gen-Probe Inc.+ 650
41,615 Guidant Corporation 2,622
42,500 Invitrogen Corporation+ 3,070
475,240 Medtronic Inc. 23,981
154,300 Millipore Corporation+ 8,090
36,000 St. Jude Medical, Inc.+ 2,745
111,340 UnitedHealth Group Inc. 6,845
35,400 Varian Medical Systems, Inc.+ 3,039
40,000 Zimmer Holdings, Inc.+ 3,194
----------
82,100
----------
Pharmaceuticals & Biotechnology - 11.8%
351,725 Amgen, Inc.+ 19,791
104,700 Biogen Idec Inc.+** 6,177
51,900 Digene Corporation+ 1,842
59,800 Dr. Reddy's Laboratories Ltd., ADR 1,172
154,165 Eli Lilly & Company 11,379
82,280 Genentech, Inc.+** 10,104
137,700 Gilead Sciences, Inc.+ 8,376
224,800 Johnson & Johnson 12,146
17,100 Martek Biosciences Corporation+ 1,086
52,300 Medimmune, Inc.+ 1,268
135,782 Mylan Laboratories Inc. 3,111
171,183 Novartis AG 7,641
1,174,075 Pfizer Inc. 41,985
40,500 Pharmaceutical Product Development, Inc.+ 1,198
Value
Shares (000s)
------ ------
35,828 Roche Holding AG-Genusschein** $ 3,743
306,531 Teva Pharmaceutical Industries Ltd.,
Sponsored ADR** 18,870
----------
149,889
----------
Total Health Care 231,989
----------
Industrials - 11.0%
Capital Goods - 8.3%
64,000 3M Company 5,535
8,400 Danaher Corporation** 777
1,734,210 General Electric Company 51,940
135,900 Honeywell International Inc. 4,699
72,900 Ingersoll-Rand Company, Class A 4,706
28,200 ITT Industries, Inc. 2,236
119,300 Lockheed Martin Corporation 5,691
38,900 Northrop Grumman Corporation 3,861
516,625 Tyco International Ltd.** 14,181
137,855 United Technologies Corporation 11,891
----------
105,517
----------
Commercial Services & Supplies - 1.1%
116,500 Cendant Corporation** 2,759
34,200 Dun & Bradstreet Corporation+ 1,787
40,600 Manpower Inc. 1,904
52,300 Paychex, Inc. 1,950
201,600 Waste Management Inc. 5,725
----------
14,125
----------
Transportation - 1.6%
58,450 Canadian National Railway Company 2,207
73,300 Expeditors International of
Washington, Inc.** 2,946
97,995 FedEx Corporation** 7,047
108,300 Norfolk Southern Corporation 2,580
72,200 United Parcel Service, Inc., Class B 5,065
----------
19,845
----------
Total Industrials 139,487
----------
Information Technology - 24.3%
Communications Equipment - 4.9%
98,700 3Com Corporation+ 608
126,360 Alcatel SA+ 1,853
32,560 American Tower Corporation, Class A+** 405
1,467,865 Cisco Systems, Inc.+ 30,634
45,670 Crown Castle International Corporation+ 637
541,500 Lucent Technologies Inc.+ 1,825
621,545 Motorola, Inc. 11,343
864,053 Nokia Oyj, Sponsored ADR 12,106
50,100 QUALCOMM Inc. 3,129
----------
62,540
----------
Computers & Peripherals - 3.5%
472,410 Dell Computer Corporation+ 16,398
190,800 EMC Corporation+ 2,129
See Notes to Financial Statements.
14
portfolio of investments (continued)
GROWTH FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - (continued)
Information Technology - (continued)
Computers & Peripherals - (continued)
188,400 Gateway, Inc.+ $ 908
36,700 Hewlett-Packard Company 723
189,600 International Business Machines Corporation 16,717
92,340 Lexmark International, Inc.+ 8,353
----------
45,228
----------
Electronic Equipment & Instruments - 1.8%
228,000 Agilent Technologies, Inc.+ 6,158
89,600 Flextronics International Ltd.+** 1,442
58,500 L-3 Communications Holdings, Inc. 3,612
137,400 PerkinElmer, Inc. 2,645
151,000 Tektronix, Inc. 4,470
35,200 Thermo Electron Corporation+ 1,028
173,200 Vishay Intertechnology, Inc.+ 3,014
----------
22,369
----------
Internet Software & Services - 2.0%
44,900 Infosys Technologies Ltd.,
Sponsored ADR** 3,635
66,830 Symantec Corporation+ 3,011
365,430 Yahoo! Inc.+ 18,440
----------
25,086
----------
IT Services - 0.1%
39,500 Cognizant Technology Solutions
Corporation+ 1,709
----------
Semiconductors & Semiconductor Equipment - 5.4%
58,200 Analog Devices, Inc. 2,479
326,270 Applied Materials, Inc.+ 5,948
21,800 ATI Technologies Inc.+ 317
6,700 Broadcom Corporation, Class A+ 253
337,600 Cypress Semiconductor Corporation+ 4,716
867,750 Intel Corporation 22,327
15,900 Linear Technology Corporation 566
27,900 Marvell Technology Group Ltd.+ 1,081
71,400 Microchip Technology Inc. 2,001
44,270 Samsung Electronics Company Ltd., GDR** 10,508
28,200 Silicon Laboratories Inc.+ 1,330
414,600 Taiwan Semiconductor Manufacturing
Company Ltd., Sponsored ADR+ 3,951
474,690 Texas Instruments Inc. 11,915
27,000 Xilinx, Inc.+ 908
----------
68,300
----------
Software - 6.6%
208,500 Adobe Systems Inc. 8,619
52,300 Amdocs Ltd.+ 1,389
215,700 Cadence Design Systems, Inc.+** 2,765
174,325 Electronic Arts Inc.+ 8,824
78,405 Intuit Inc.+ 3,330
24,900 Mercury Interactive Corporation+ 1,060
Value
Shares (000s)
------ ------
1,872,240 Microsoft Corporation $ 48,622
43,500 Network Associates, Inc.+ 682
115,900 Novell, Inc.+ 1,117
175,400 Oracle Corporation+ 1,968
44,000 Red Hat, Inc.+ 999
39,800 SAP AG, Sponsored ADR 1,484
126,400 VERITAS Software Corporation+ 3,371
----------
84,230
----------
Total Information Technology 309,462
----------
Materials - 2.3%
86,600 Air Products & Chemicals, Inc. 4,313
63,400 Alcoa Inc. 1,950
54,400 Dow Chemical Company 2,159
59,200 E.I. Du Pont de Nemours & Company 2,543
52,500 Ecolab, Inc. 1,564
27,000 Monsanto Company 934
25,550 Phelps Dodge Corporation+ 1,682
268,000 Praxair, Inc. 9,795
49,840 Rio Tinto PLC, Sponsored ADR 4,466
----------
Total Materials 29,406
----------
Telecommunication Services - 0.4%
4,300 Mobile Telesystems OJSC, Sponsored ADR 464
122,900 Telefonos de Mexico SA de CV, Class L,
Sponsored ADR 4,196
7,800 VimpelCom, Sponsored ADR+ 700
----------
Total Telecommunication Services 5,360
----------
Total Common Stocks
(Cost $1,117,022) 1,189,552
----------
REAL ESTATE INVESTMENT TRUST - 0.2%
(Cost $2,039)
196,900 Host Marriott Corporation+ 2,343
----------
PREFERRED STOCK - 0.1%
(Cost $1,989)
60,200 News Corporation Ltd., Sponsored ADR 2,032
----------
See Notes to Financial Statements.
15
portfolio of investments (continued)
GROWTH FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
U.S. GOVERNMENT AGENCY DISCOUNT NOTE - 3.0%
(Cost $38,198)
Federal Home Loan Bank (FHLB) - 3.0%
$ 38,200 0.850% due 05/03/2004*** $ 38,198
----------
REPURCHASE AGREEMENT - 4.0%
(Cost $50,466)
50,466 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $50,470,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$51,491,000) 50,466
----------
SHORT-TERM INVESTMENT - 9.8%
(Cost $124,627)
124,627 Mellon GSL DBT II
Collateral Fund ++ 124,627
----------
TOTAL INVESTMENTS (Cost $1,334,341*) 110.6% 1,407,218
OTHER ASSETS AND LIABILITIES (Net) (10.6) (134,739)
----- ----------
NET ASSETS 100.0% $1,272,479
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2004, and have
an aggregate market value of $116,215,000, representing 9.1% of the total
net assets of the Fund (Collateral Value $124,627,000).
*** Rate represents discount rate on purchase date.
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities
loaned.
SCHEDULE OF FORWARD FOREIGN CURRENCY CONTRACTS
Forward Foreign Currency Contracts to Sell
Contracts to Deliver
(000s)
------------------------------------------
Net
Unrealized
In Appreciation/
Expiration Local Value in Exchange (Depreciation)
Date Currency U.S. $ for U.S. $ of Contracts
- ---------- ------------ -------- ---------- --------------
08/06/2004 EUR 350 418 437 19
09/27/2004 EUR 1,175 1,404 1,428 24
10/15/2004 EUR 130 155 154 (1)
----
Net Unrealized Appreciation of Forward Foreign
Currency Contracts $ 42
====
- --------
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
ADR -- American Depository Receipt
EUR -- EURO
GDR -- Global Depository Receipt
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
16
portfolio of investments
SMALL CAP VALUE FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - 71.6%
Consumer Discretionary - 8.8%
Automobiles & Components - 1.0%
89,800 Tesma International Inc., Class A (F) $ 2,069
----------
Consumer Durables & Apparel - 3.7%
30,000 Beazer Homes USA, Inc.** 2,953
56,600 Kellwood Company 2,233
101,400 RC2 Corporation+ 2,749
----------
7,935
----------
Media - 2.6%
86,000 Carmike Cinemas, Inc.+ 3,246
155,000 Reader's Digest Association, Inc. 2,221
----------
5,467
----------
Retailing - 1.5%
165,000 Movie Gallery, Inc. 3,204
----------
Total Consumer Discretionary 18,675
----------
Consumer Staples - 6.8%
Food & Staples Retailing - 1.4%
127,000 Fresh Del Monte Produce Inc. (F) 2,965
----------
Food, Beverage & Tobacco - 1.0%
238,300 National Beverage Corporation+ 2,164
----------
Household & Personal Products - 4.4%
61,000 Central Garden & Pet Company+ 2,349
62,600 CSS Industries, Inc. 2,116
90,200 Del Laboratories, Inc.+ 2,573
63,200 Jarden Corporation+** 2,351
----------
9,389
----------
Total Consumer Staples 14,518
----------
Energy - 9.5%
88,100 Berry Petroleum Company, Class A 2,389
168,000 Comstock Resources, Inc.+ 3,419
97,000 Evergreen Resources, Inc.+ 3,893
182,000 Plains Exploration & Production Company+ 3,585
99,000 St. Mary Land & Exploration Company 3,579
67,400 Stone Energy Corporation+ 3,316
----------
Total Energy 20,181
----------
Financials - 11.0%
Banks - 6.8%
158,500 Dime Community Bancshares 2,710
134,500 Flagstar Bancorp, Inc. 2,748
116,500 Harbor Florida Bancshares, Inc. 3,229
100,900 Oriental Financial Group Inc. 2,878
134,000 U.S.B. Holding Company, Inc. 2,821
----------
14,386
----------
Insurance - 4.2%
71,000 LandAmerica Financial Group, Inc. 2,926
71,800 Navigators Group, Inc.+ 1,870
Value
Shares (000s)
------ ------
54,700 Stewart Information Services Corporation $ 1,942
191,200 Universal American Financial Corporation+ 2,103
----------
8,841
----------
Total Financials 23,227
----------
Health Care - 3.3%
Health Care Equipment & Services - 3.3%
99,900 Biosite Inc.+** 3,958
129,000 Owens & Minor, Inc. 3,135
----------
Total Health Care 7,093
----------
Industrials - 15.4%
Capital Goods - 6.5%
81,700 Cubic Corporation 1,928
116,900 DRS Technologies, Inc.+ 3,303
44,000 Esterline Technologies Corporation+ 1,089
147,000 Griffon Corporation+ 3,227
113,900 Lennox International Inc. 1,903
69,500 Triumph Group, Inc.+ 2,234
----------
13,684
----------
Commercial Services & Supplies - 3.4%
143,500 Duratek Inc.+ 1,865
48,500 ESCO Technologies Inc.+ 2,343
638,800 PRG-Schultz International, Inc.+ 3,002
----------
7,210
----------
Transportation - 5.5%
93,000 Alaska Air Group, Inc.+ 2,058
504,400 Atlantic Coast Airlines Holdings, Inc.+ 3,304
7,200 Dampskibsselskabet Torm A/S, ADR+ 321
88,400 Genesee & Wyoming Inc., Class A+ 2,038
204,100 OMI Corporation 2,055
76,800 Stelmar Shipping Ltd. (F) 1,893
----------
11,669
----------
Total Industrials 32,563
----------
Information Technology - 6.1%
Computers & Peripherals - 1.8%
155,000 Hutchinson Technology Inc.+** 3,811
----------
Electronic Equipment & Instruments - 0.6%
54,300 OSI Systems, Inc.+** 1,239
----------
Semiconductors & Semiconductor Equipment - 0.9%
92,000 DuPont Photomasks, Inc.+** 1,903
----------
Software - 2.8%
990,300 Atari, Inc.+** 3,001
494,000 Geac Computer Corporation Ltd. (F)+ 2,939
----------
5,940
----------
Total Information Technology 12,893
----------
See Notes to Financial Statements.
17
portfolio of investments (continued)
SMALL CAP VALUE FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - (continued)
Materials - 7.1%
112,000 Albemarle Corporation $ 3,276
89,100 Headwaters Inc.+ 2,048
188,200 Metal Management, Inc.+ 2,729
83,500 Quaker Chemical Corporation 2,109
186,400 Randgold Resources Ltd., ADR+ 3,115
126,300 Stillwater Mining Company+ 1,696
----------
Total Materials 14,973
----------
Telecommunication Services - 1.5%
187,600 Asia Satellite Telecommunications
Holdings Ltd., Sponsored ADR 3,187
----------
Utilities - 2.1%
53,000 Energen Corporation 2,192
71,400 Suburban Propane Partners LP** 2,200
----------
Total Utilities 4,392
----------
Total Common Stocks
(Cost $157,186) 151,702
----------
CANADIAN INCOME TRUSTS - 10.7%
202,200 Bonavista Energy Trust 3,271
284,500 Clean Power Income Fund 1,837
242,000 Connors Brothers Income Fund 2,816
80,000 Fording Canadian Coal Trust 3,076
232,100 Labrador Iron Ore Royalty Trust 2,818
119,100 Peyto Energy Trust** 2,512
325,600 TimberWest Forest Corporation 3,045
243,400 Vermilion Energy Trust 3,274
----------
Total Canadian Income Trusts
(Cost $24,181) 22,649
----------
REAL ESTATE INVESTMENT TRUSTS - 5.4%
146,700 Cedar Shopping Centers Inc. 1,709
89,600 Entertainment Properties Trust 2,998
366,000 Equity Inns Inc. 3,001
53,000 Sovran Self Storage, Inc. 1,790
206,500 Winston Hotels, Inc. 1,902
----------
Total Real Estate Investment Trusts
(Cost $13,173) 11,400
----------
Contracts
- ---------
PURCHASED PUT OPTIONS - 3.4%
4,500 iShares Russell 2000 Index,
Expires January 2006 @ $95+ 2,925
20,000 Nasdaq 100 Index,
Expires January 2006 @ $29+ 4,200
----------
Total Purchased Put Options
(Cost $6,703) 7,125
----------
Principal
Amount Value
(000s) (000s)
- --------- ------
REPURCHASE AGREEMENT - 9.5%
(Cost $20,073)
$ 20,073 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $20,075,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$20,481,000) $ 20,073
----------
SHORT-TERM INVESTMENT - 6.6%
(Cost $13,906)
13,906 Mellon GSL DBT II
Collateral Fund ++ 13,906
----------
TOTAL INVESTMENTS (Cost $235,222*) 107.2% 226,855
OTHER ASSETS AND LIABILITIES (Net) (7.2) (15,120)
----- ----------
NET ASSETS 100.0% $ 211,735
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2004, and have an
aggregate market value of $11,987,000, representing 5.7% of the total
net assets of the Fund (Collateral Value $13,906,000).
+ Non-income producing security.
++ Represents investment purchased with cash collateral for securities loaned.
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
ADR -- American Depository Receipt
(F) -- Foreign Shares
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
18
portfolio of investments
SMALL CAP GROWTH FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - 99.5%
Consumer Discretionary - 14.5%
Consumer Durables & Apparel - 1.2%
174,700 Quiksilver, Inc.+ $ 3,779
----------
Hotels, Restaurants & Leisure - 2.0%
429,400 Intrawest Corporation 6,561
----------
Media - 4.3%
645,000 aQuantive, Inc.+ 6,482
65,900 Getty Images, Inc.+ 3,598
446,000 NTN Communications, Inc.+ 1,227
807,100 Sirius Satellite Radio Inc.+** 2,663
----------
13,970
----------
Retailing - 7.0%
130,700 AnnTaylor Stores Corporation+ 5,297
321,600 Building Materials Holding Corporation 5,287
217,000 Pacific Sunwear of California, Inc.+ 4,659
250,700 West Marine, Inc.+ 7,291
----------
22,534
----------
Total Consumer Discretionary 46,844
----------
Consumer Staples - 4.0%
Food & Staples Retailing - 4.0%
681,200 SunOpta Inc.+ 6,396
261,300 United Natural Foods, Inc.+ 6,546
----------
Total Consumer Staples 12,942
----------
Energy - 2.5%
690,300 Hydrogenics Corporation+ 3,783
38,871 Plug Power Inc.+ 302
683,200 Quantum Fuel Systems Technologies
Worldwide, Inc.+ 4,154
----------
Total Energy 8,239
----------
Financials - 8.1%
Banks - 0.8%
82,200 Frontier Financial Corporation 2,725
----------
Diversified Financials - 7.3%
132,500 Affiliated Managers Group, Inc.+** 6,453
265,917 American Capital Strategies Ltd. 6,980
272,100 First Albany Companies Inc. 3,399
172,100 Investors Financial Services Corporation** 6,689
----------
23,521
----------
Total Financials 26,246
----------
Health Care - 22.3%
Health Care Equipment & Services - 7.0%
165,400 Accredo Health, Inc.+ 6,393
133,700 Advanced Neuromodulation Systems, Inc.+ 3,643
194,200 Affymetrix, Inc.+** 5,935
312,200 SonoSite, Inc.+ 6,718
----------
22,689
----------
Value
Shares (000s)
------ ------
Pharmaceuticals & Biotechnology - 15.3%
435,300 Antigenics Inc.+** $ 4,153
388,900 Cell Genesys, Inc.+ 4,297
717,300 Corixa Corporation+** 4,196
378,500 Dendreon Corporation+ 4,920
679,000 Emisphere Technologies, Inc.+ 3,164
149,900 Medicis Pharmaceutical Corporation,
Class A 6,434
254,400 Myriad Genetics, Inc.+ 4,383
443,500 Neose Technologies, Inc.+ 4,076
557,800 Pain Therapeutics, Inc.+ 4,100
359,300 Pharmacyclics, Inc.+ 4,276
104,400 Sangamo BioSciences, Inc.+ 717
288,300 Zymogenetics, Inc.+ 4,570
----------
49,286
----------
Total Health Care 71,975
----------
Industrials - 11.6%
Commercial Services & Supplies - 11.6%
781,900 Digimarc Corporation+ 8,820
336,300 Euronet Worldwide, Inc.+ 6,534
1,348,400 Exult Inc.+** 8,239
364,595 First Consulting Group, Inc.+ 2,024
240,500 Gevity HR, Inc. 5,298
202,700 Kroll Inc.+** 6,008
41,400 Wireless Facilities, Inc.+ 397
----------
Total Industrials 37,320
----------
Information Technology - 32.0% ++
Communications Equipment - 4.3%
278,200 InterDigital Communications Corporation+ 4,849
540,200 REMEC, Inc.+ 3,398
252,100 ViaSat, Inc.+ 5,541
----------
13,788
----------
Computers & Peripherals - 0.7%
502,300 Immersion Corporation+ 2,270
----------
Electronic Equipment & Instruments - 2.9%
249,700 Microvision, Inc.+** 2,122
288,650 Trimble Navigation Ltd.+ 7,231
----------
9,353
----------
Internet Software & Services - 7.8%
1,008,800 Corillian Corporation+ 4,358
4,082,300 Intraware, Inc.+ 8,083
695,800 Online Resources Corporation+ 3,966
861,500 Primus Knowledge Solutions, Inc.+ 2,137
997,525 SumTotal Systems, Inc.+** 6,684
----------
25,228
----------
IT Services - 2.2%
811,600 Lionbridge Technologies, Inc.+ 7,321
----------
See Notes to Financial Statements.
19
portfolio of investments (continued)
SMALL CAP GROWTH FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - (continued)
Information Technology - (continued)
Semiconductors & Semiconductor Equipment - 2.9%
164,500 FEI Company+ $ 3,287
276,800 Pixelworks, Inc.+** 4,949
42,200 Power Integrations, Inc.+ 1,039
----------
9,275
----------
Software - 11.2%
61,600 ANSYS, Inc.+ 2,282
3,507,500 BSQUARE Corporation+ 4,293
359,889 NetIQ Corporation+ 4,628
591,700 Nuance Communications Inc.+ 2,876
1,254,250 ONYX Software Corporation+ 4,515
554,400 PDF Solutions, Inc.+ 5,489
1,390,200 ScanSoft, Inc.+ 6,757
418,800 SkillSoft PLC, ADR+ 5,235
----------
36,075
----------
Total Information Technology 103,310
----------
Materials - 3.1%
290,000 Headwaters Inc.+** 6,667
1,239,000 Liquidmetal Technologies Inc.+** 3,209
----------
Total Materials 9,876
----------
Telecommunication Services - 1.4%
123,885 Gilat Satellite Networks Ltd.+ 828
640,100 Primus Telecommunications Group, Inc.+ 3,565
----------
Total Telecommunication Services 4,393
----------
Total Common Stocks
(Cost $320,594) 321,145
----------
Principal
Amount Value
(000s) (000s)
- --------- ------
REPURCHASE AGREEMENT - 0.5%
(Cost $1,658)
$ 1,658 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $1,658,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$1,692,000) $ 1,658
----------
SHORT-TERM INVESTMENT - 15.0%
(Cost $48,352)
48,352 Mellon GSL DBT II
Collateral Fund +++ 48,352
----------
TOTAL INVESTMENTS (Cost $370,604*) 115.0% 371,155
OTHER ASSETS AND LIABILITIES (Net) (15.0) (48,512)
----- ----------
NET ASSETS 100.0% $ 322,643
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2004, and have an
aggregate market value of $43,560,000, representing 13.5% of the total
net assets of the Fund (Collateral Value $48,352,000).
+ Non-income producing security.
++ Investments in the Information Technology sector as of April 30, 2004 are
32.0% of the total net assets of the Fund.
+++ Represents investment purchased with cash collateral for securities loaned.
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
ADR -- American Depository Receipt
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
20
portfolio of investments
INTERNATIONAL GROWTH FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - 93.4%
Japan - 23.2% +++
14,200 ACOM Company, Ltd. $ 995
21,110 Advantest Corporation 1,572
93,000 AEON Company Ltd. 4,029
10,165 Aiful Corporation 1,015
28,000 Canon Inc. 1,452
4,300 Chugai Pharmaceutical Company Ltd. 65
66,000 Dai Nippon Printing Company Ltd. 989
87,000 Daiwa House Industry Company Ltd. 964
97,000 Daiwa Securities Group Inc. 715
175 East Japan Railway 891
34,200 FANUC Ltd. 2,059
241,000 Furukawa Electric Company Ltd.+ 914
17,900 Hirose Electric Company Ltd. 2,023
14,000 Honda Motor Company Ltd. 558
23,500 Hoya Corporation 2,513
155,000 Japan Airlines System Corporation+ 457
116,200 Kansai Electric Power Company Inc. 2,025
4,400 Keyence Corporation 1,048
96,000 Konica Minolta Holdings Inc. 1,309
14,600 Kyocera Corporation 1,198
241 Millea Holdings, Inc. 3,389
187,000 Mitsubishi Corporation 1,762
345,000 Mitsubishi Estate Company Ltd. 4,016
202,000 Mitsubishi Heavy Industries Ltd. 550
342,000 Mitsubishi Motors Corporation+** 841
328 Mitsubishi Tokyo Financial Group, Inc. 2,885
139,000 Mitsui Fudosan Company Ltd. 1,511
427,000 Mitsui Sumitomo Insurance Company Ltd. 3,968
23,000 Murata Manufacturing Company Ltd. 1,478
721,000 NEC Corporation 5,537
10,400 Nidec Corporation 1,109
155,000 Nikko Cordial Corporation 863
106,000 Nikon Corporation** 1,216
16,200 Nintendo Company Ltd. 1,510
231,000 Nippon Steel Corporation 478
381,000 Nissan Motor Company Ltd. 4,162
1,000 Nissin Food Products Company Ltd. 25
37,700 Nitto Denko Corporation 2,060
86,000 Nomura Securities Company Ltd. 1,381
39,200 OMRON Corporation 947
22,800 ORIX Corporation 2,389
60,000 Ricoh Company, Ltd. 1,179
21,200 Rohm Company Ltd. 2,598
116,000 Sankyo Company Ltd. 2,133
197,000 Sekisui House Ltd. 2,059
12,100 Shimamura Company Ltd. 994
25,100 Shin-Etsu Chemical Company Ltd. 998
135,000 Shionogi & Company Ltd. 2,099
21,500 SMC Corporation 2,428
17,800 SOFTBANK Corporation 787
129,000 Sompo Japan Insurance Inc. 1,148
37,190 Sony Corporation 1,422
398,000 Sumitomo Chemical Company Ltd. 1,815
559 Sumitomo Mitsui Financial Group, Inc. 4,165
150,000 Suzuki Motor Corporation 2,348
34,000 Takeda Chemical Industries Ltd. 1,359
Value
Shares (000s)
------ ------
13,100 TDK Corporation $918
55,600 Tokyo Electron Ltd. 3,304
255,000 TOKYO GAS Company Ltd. 942
216,000 Toray Industries Inc. 977
97,400 Toyota Motor Corporation 3,524
319 UFJ Holdings, Inc. 1,934
19,600 Unicharm Corporation 923
395 Vodafone Holdings 916
96 Yahoo! Japan Corporation+ 1,085
111,000 Yamato Transport Company Ltd. 1,669
----------
112,592
----------
United Kingdom - 18.9%
44,100 Anglo American PLC 884
437,000 ARM Holdings PLC 891
131,300 AstraZeneca PLC 6,166
205,400 AstraZeneca PLC (F) 9,670
307,269 BAE SYSTEMS PLC 1,137
196,600 Barclays PLC 1,765
1,119,900 BG Group PLC 6,451
552,184 BHP Billiton PLC 4,388
37,400 Brambles Industries PLC 139
370,900 Centrica PLC 1,432
59,500 Compass Group PLC 373
199,000 Diageo PLC 2,662
21,400 GlaxoSmithKline PLC 441
262,200 HBOS PLC 3,378
297,300 HSBC Holdings PLC 4,238
425,000 National Grid Group PLC 3,219
211,700 Pearson PLC 2,461
102,000 Prudential PLC 797
312,700 Reed Elsevier PLC 2,896
24,500 Rio Tinto PLC 536
207,000 Royal Bank of Scotland Group PLC 6,183
218,100 Shell Transport & Trading Company PLC 1,501
290,740 Smiths Group PLC 3,588
178,800 Standard Chartered PLC 2,725
194,000 TI Automotive Ltd., Class A+ 0***
399,800 Unilever PLC 3,760
7,406,719 Vodafone Group PLC 17,914
61,600 Wolseley PLC 898
119,500 Xstrata PLC** 1,339
----------
91,832
----------
France - 9.3%
50,200 Accor SA 2,100
116,900 BNP Paribas SA** 6,965
121,100 Bouygues SA++** 4,109
21,200 Carrefour SA 977
25,700 Essilor International SA 1,497
14,800 France Telecom SA+ 354
19,900 Groupe Danone** 3,333
19,462 L'Air Liquide SA 3,393
23,200 L'Oreal SA 1,739
29,300 Renault SA 2,172
190,800 Sanofi-Synthelabo SA** 11,916
15,100 Schneider Electric SA 1,012
15,600 Societe Generale Group** 1,291
48,100 STMicroelectronics NV 1,047
See Notes to Financial Statements.
21
portfolio of investments (continued)
INTERNATIONAL GROWTH FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - (continued)
France - (continued)
14,600 STMicroelectronics NV (F) $ 318
115,900 Vivendi Universal SA+ 2,877
----------
45,100
----------
Switzerland - 9.0%
155,087 ABB Ltd.+ 874
217,982 Compagnie Financiere Richemont AG,
A Units 5,564
8,312 Credit Suisse Group+** 291
86,546 Holcim Ltd.** 4,445
27,251 Nestle SA** 6,873
176,757 Novartis AG** 7,890
24,580 Roche Holding AG-Genusschein** 2,568
1,530 Serono SA** 908
85,825 Swiss Reinsurance Company** 5,615
14,531 Swisscom AG** 4,506
1,050 Synthes-Stratec, Inc.** 1,140
41,956 UBS AG** 2,971
----------
43,645
----------
Netherlands - 8.5%
255,840 ABN AMRO Holding NV 5,505
313,968 AEGON NV 4,061
68,500 Heineken Holding NV, Class A 2,516
83,525 Heineken NV 3,509
127,212 ING Groep NV 2,697
809,900 Koninklijke (Royal) KPN NV+ 5,804
30,500 Koninklijke (Royal) Philips
Electronics NV 819
31,000 Koninklijke Numico NV+ 853
19,000 Reed Elsevier NV 266
218,300 Royal Dutch Petroleum Company** 10,604
14,900 Royal Dutch Petroleum Company (F) 725
47,000 TPG NV 1,010
26,200 Unilever NV 1,716
39,667 VNU NV 1,102
----------
41,187
----------
Germany - 5.1%
24,500 Allianz AG** 2,580
93,300 Bayerische Hypo-und Vereinsbank AG+ 1,605
32,100 Bayerische Motoren Werke (BMW) AG** 1,373
105,400 DaimlerChrysler AG** 4,704
9,800 Deutsche Bank AG** 802
28,237 Deutsche Boerse AG** 1,544
43,200 Deutsche Telekom AG+** 741
13,600 Epcos AG+ 282
108,100 Infineon Technologies AG+ 1,375
17,100 Metro AG 755
21,543 Muenchener Rueckversicherungs-
Gesellschaft AG++ 2,309
13,200 SAP AG** 1,969
5,200 SAP AG, Sponsored ADR 194
48,100 Siemens AG 3,454
53,400 ThyssenKrupp AG 923
----------
24,610
----------
Canada - 2.7%
180,100 Abitibi-Consolidated Inc.** 1,257
Value
Shares (000s)
------ ------
24,800 Alcan Inc.** $994
637,000 Bombardier Inc., Class B++** 2,798
6,300 Great-West Lifeco Inc. 231
25,800 Manulife Financial Corporation 951
22,800 National Bank of Canada 737
44,800 Suncor Energy Inc. 1,065
66,100 TELUS Corporation 1,038
131,900 Thomson Corporation 4,187
----------
13,258
----------
Spain - 2.5%
383,700 Banco Bilbao Vizcaya Argentaria SA** 5,039
144,800 Industria de Diseno Textil SA (Inditex) 3,139
262,841 Telefonica SA+** 3,878
----------
12,056
----------
Australia - 2.3% +++
186,000 Alumina Ltd. 678
161,400 Amcor Ltd. 808
136,863 Australia & New Zealand Banking Group
Ltd. 1,837
102,340 BHP Billiton Ltd. 837
127,300 Brambles Industries Ltd. 508
218,602 Foster's Group Ltd. 771
151,900 Insurance Australia Group Ltd. 531
58,900 National Australia Bank Ltd. 1,254
147,800 Promina Group Ltd. 398
136,914 QBE Insurance Group Ltd. 1,147
44,232 Rinker Group Ltd. 226
41,300 Wesfarmers Ltd. 848
100,000 WMC Resources Ltd. 345
115,200 Woolworths Ltd. 980
----------
11,168
----------
Hong Kong - 1.7% +++
112,000 Cheung Kong Holdings Ltd. 850
114,000 Esprit Holdings Ltd.++ 466
1,034,000 Hang Lung Properties Ltd. 1,387
63,900 Hang Seng Bank Ltd. 809
55,000 Hongkong Land Holdings Ltd. 95
90,200 Hutchison Whampoa Ltd. 602
911,500 Johnson Electric Holdings Ltd. 801
1,178,000 Li & Fung Ltd. 1,816
93,000 Sung Hung Kai Properties Ltd. 792
117,800 Swire Pacific Ltd., Class A 764
----------
8,382
----------
Singapore - 1.6% +++
40,000 DBS Group Holdings Ltd. 334
70,000 DBS Group Holdings Ltd., ADR++ 589
64,000 Singapore Press Holdings Ltd. 787
123,000 Singapore Technologies Engineering
Ltd. 136
3,502,880 Singapore Telecommunications
Ltd. (F)++** 4,834
122,000 United Overseas Bank Ltd. (F) 976
----------
7,656
----------
Norway - 1.3%
127,700 DnB Holding ASA 805
43,000 Norsk Hydro ASA 2,513
19,700 Norske Skogindustrier ASA 356
See Notes to Financial Statements.
22
portfolio of investments (continued)
INTERNATIONAL GROWTH FUND
April 30, 2004 (unaudited)
Value
Shares (000s)
------ ------
COMMON STOCKS - (continued)
Norway - (continued)
186,500 Statoil ASA $ 2,331
58,200 Yara International ASA+ 411
----------
6,416
----------
Sweden - 1.2%
143,400 Assa Abloy AB, B Shares** 1,730
162,000 ForeningsSparbanken AB** 3,002
29,800 Scania AB, Class B 914
----------
5,646
----------
Taiwan - 1.0% +++
481,423 Taiwan Semiconductor Manufacturing
Company Ltd., Sponsored ADR+ 4,588
----------
Italy - 0.9%
17,600 Assicurazioni Generali SpA** 462
140,350 Eni SpA 2,851
260,200 UniCredito Italiano SpA 1,209
----------
4,522
----------
South Korea - 0.9% +++
8,976 Samsung Electronics Company Ltd. 4,207
----------
Finland - 0.8%
181,100 Nokia Oyj 2,533
76,600 UPM-Kymmene Oyj 1,405
----------
3,938
----------
Mexico - 0.6%
47,600 America Movil SA de CV, Series L, ADR 1,609
39,600 Telefonos de Mexico SA de CV,
Class L, Sponsored ADR 1,352
----------
2,961
----------
Denmark - 0.5%
39,300 Novo Nordisk A/S, Class B 1,873
10,200 TDC A/S 345
----------
2,218
----------
Russia - 0.4%
38,100 YUKOS, ADR 1,707
----------
Brazil - 0.3%
20,197 Companhia Vale do Rio Doce, ADR+ 919
17,100 Companhia Vale do Rio Doce,
Sponsored ADR 668
----------
1,587
----------
Ireland - 0.3%
74,468 CRH PLC 1,578
----------
Austria - 0.2%
5,900 Erste Bank der oesterreichischen
Sparkassen AG 879
----------
Belgium - 0.1%
63,600 SES GLOBAL, FDR 609
----------
Value
Shares (000s)
------ ------
China - 0.1% +++
229,500 China Mobile (Hong Kong) Ltd. $ 602
----------
South Africa - 0.0% ****
13,000 Sasol Ltd. 195
----------
Total Common Stocks
(Cost $398,503) 453,139
----------
CONVERTIBLE PREFERRED STOCKS - 0.7%
Japan - 0.7% +++
42,000,000 Sumitomo Mitsui Finance Group Inc.
(F), Conv. Pfd., 2.250%
due 07/11/2005 1,017
99,000,000 Sumitomo Mitsui Finance Group Inc.
(F), Conv. Pfd., 2.250%
due 07/11/2005++ 2,396
----------
Total Convertible Preferred Stocks
(Cost $1,326) 3,413
----------
PREFERRED STOCKS - 0.2%
Australia - 0.2% +++
96,600 News Corporation Ltd. 814
----------
South Korea - 0.0% +++****
900 Samsung Electronics Company Ltd. 245
----------
Total Preferred Stocks
(Cost $831) 1,059
----------
Principal
Amount
(000s)
---------
CONVERTIBLE BONDS - 0.2%
(Cost $682)
Switzerland - 0.2%
$ 826 Credit Suisse Group Financial, Conv.
Jr. Bond, 6.000% due 12/23/2005 863
----------
REPURCHASE AGREEMENT - 4.9%
(Cost $24,004)
24,004 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $24,006,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note 6.750%
due 05/15/2005, market value
$24,492,000) 24,004
----------
SHORT-TERM Investment - 17.6%
(Cost $85,616)
85,616 Mellon GSL DBT II
Collateral Fund ++++ 85,616
----------
TOTAL INVESTMENTS (Cost $510,962*) 117.0% 568,094
OTHER ASSETS AND LIABILITIES (Net) (17.0) (82,851)
----- ----------
NET ASSETS 100.0% $ 485,243
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Some or all of these securities are on loan at April 30, 2004, and have
an aggregate market value of $81,435,000, representing 16.8% of the net
assets of the Fund (Collateral Value $85,616,000).
*** Value of security is $0.
**** Amount represents less than 0.1% of total net assets.
+ Non-income producing security.
++ Security acquired in a transaction exempt from registration under
Rule 144A of the Securities Act of 1933.
+++ Investments in the areas of the Pacific Rim as of April 30, 2004 are
31.7% of the net assets of the Fund.
++++ Represents investment purchased with cash collateral for securities
loaned.
See Notes to Financial Statements.
23
portfolio of investments (continued)
INTERNATIONAL GROWTH FUND
April 30, 2004 (unaudited)
SCHEDULE OF FORWARD FOREIGN CURRENCY CONTRACTS
Forward Foreign Currency Contracts to Buy
Contracts to Receive
(000s)
-----------------------------------------
Net
Unrealized
In Appreciation/
Expiration Local Value in Exchange (Depreciation)
Date Currency U.S. $ for U.S. $ of Contracts
- ---------- ---------------- -------- ---------- --------------
05/03/2004 AUD 28 20 20 $ --***
05/03/2004 EUR 231 277 277 --***
05/03/2004 HKD 165 21 21 --***
05/04/2004 AUD 88 64 64 --***
05/04/2004 EUR 70 83 83 --***
05/04/2004 HKD 289 37 37 --***
05/05/2004 AUD 52 37 37 --***
05/06/2004 CAD 2,952 2,146 2,207 (61)
05/06/2004 JPY 230,970 2,093 2,207 (114)
05/12/2004 CHF 3,310 2,553 2,419 134
05/12/2004 GBP 1,476 2,614 2,419 195
05/24/2004 EUR 1,864 2,232 2,288 (56)
05/26/2004 JPY 457,140 4,146 4,215 (69)
07/20/2004 CAD 3,973 2,883 2,931 (48)
-----
$ (19)
-----
As of April 30, 2004, sector diversification is as follows:
% of Value
Sector Diversification Net Assets (000s)
---------------------- ---------- ------
COMMON STOCKS:
Banks 13.2% $ 64,173
Telecommunication Services 9.9 48,002
Pharmaceuticals & Biotechnology 9.7 47,088
Materials 6.9 33,566
Energy 6.2 29,943
Insurance 5.7 27,587
Food, Beverage & Tobacco 5.4 26,018
Capital Goods 5.1 24,759
Semiconductors & Semiconductor Equipment 4.5 22,063
Automobiles & Components 4.1 19,682
Media 3.1 15,185
Consumer Durables & Apparel 2.9 14,113
Diversified Financials 2.5 12,363
Retailing 2.4 11,631
Electronic Equipment & Instruments 2.2 10,569
Real Estate Investment Trusts 1.8 8,651
Utilities 1.6 7,618
Computers & Peripherals 1.1 5,537
Commercial Services & Supplies 0.9 4,267
Other 4.2 20,324
----- --------
TOTAL COMMON STOCKS 93.4 453,139
CONVERTIBLE PREFERRED STOCKS 0.7 3,413
PREFERRED STOCKS 0.2 1,059
CONVERTIBLE BONDS 0.2 863
REPURCHASE AGREEMENT 4.9 24,004
SHORT-TERM INVESTMENT 17.6 85,616
----- --------
TOTAL INVESTMENTS 117.0 568,094
OTHER ASSETS AND LIABILITIES (Net) (17.0) (82,851)
----- --------
NET ASSETS 100.0% $485,243
===== ========
Forward Foreign Currency Contracts to Sell
Contracts to Deliver
(000s)
------------------------------------------
Net
Unrealized
In Appreciation/
Expiration Local Value in Exchange (Depreciation)
Date Currency U.S. $ for U.S. $ of Contracts
- ---------- ---------------- -------- ---------- --------------
05/03/2004 EUR 86 103 102 $ (1)
05/03/2004 NOK 87 13 13 --***
05/03/2004 SGD 39 23 23 --***
05/04/2004 SEK 187 24 24 --***
05/05/2004 NOK 566 82 82 --***
05/06/2004 CAD 2,952 2,146 2,207 61
05/06/2004 JPY 235,881 2,138 2,199 61
05/07/2004 JPY 2,408 22 22 --***
05/10/2004 JPY 25,707 233 233 --***
05/12/2004 CHF 3,310 2,553 2,419 (134)
05/12/2004 GBP 1,476 2,614 2,523 (91)
05/24/2004 EUR 1,864 2,232 2,327 95
05/24/2004 JPY 253,038 2,295 2,327 32
05/26/2004 CHF 9,458 7,299 7,438 139
06/04/2004 JPY 163,888 1,487 1,490 3
07/20/2004 JPY 318,364 2,893 2,931 38
08/06/2004 CAD 4,120 2,988 3,000 12
-----
$ 215
-----
Net Unrealized Appreciation of Forward
Foreign Currency Contracts $ 196
=====
<FN>
- --------
*** Amount represents less than $500.
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
ADR -- American Depository Receipt
AUD -- Australian Dollar
CAD -- Canadian Dollar
CHF -- Swiss Franc
EUR -- EURO
(F) -- Foreign Shares
FDR -- Fiduciary Depository Receipt
GBP -- Great Britain Pound Sterling
GDR -- Global Depository Receipt
HKD -- Hong Kong Dollar
NOK -- Norwegian Krone
JPY -- Japanese Yen
SEK -- Swedish Krona
SGD -- Singapore Dollar
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
24
portfolio of investments
SHORT TERM INCOME FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
CORPORATE BONDS AND NOTES - 56.9%
Financial Services - 11.2%
$ 6,000 Berkshire Hathaway Inc., Note,
3.375% due 10/15/2008** $ 5,872
CIT Group Inc., Sr. Note:
1,500 7.375% due 04/02/2007 1,666
2,000 7.625% due 08/16/2005 2,135
3,750 Countrywide Home Loans, Inc., Company
Guarantee, Series K,
5.500% due 02/01/2007 3,956
2,500 Goldman Sachs Group, Inc., Note,
4.125% due 01/15/2008 2,536
Household Finance Corporation, Note:
3,500 5.750% due 01/30/2007 3,730
1,500 7.875% due 03/01/2007 1,682
3,500 Rollins Truck Leasing Corporation,
Deb., 8.375% due 02/15/2007 3,983
4,000 SLM Corporation, MTN,
4.000% due 01/15/2009 3,979
----------
29,539
----------
Banks - 9.6%
4,250 Capital One Bank, Sr. Note,
8.250% due 06/15/2005 4,521
5,750 Fifth Third Bank, Note,
2.700% due 01/30/2007 5,708
3,000 J.P. Morgan Chase & Company, Note,
5.350% due 03/01/2007 3,175
3,500 MBNA America Bank N.A., Note,
6.500% due 06/20/2006 3,752
5,000 U.S. Bank N.A., Note,
2.850% due 11/15/2006 5,031
3,000 Wachovia Corporation, Sr. Note,
6.700% due 06/21/2004 3,022
----------
25,209
----------
Real Estate Investment Trusts/Property - 9.2%
4,000 CPG Partners LP, Note,
3.500% due 03/15/2009 3,838
4,250 Developers Diversified Realty
Corporation, Sr. Note,
6.625% due 01/15/2008 4,603
4,000 Duke-Weeks Realty Corporation, Note,
7.375% due 08/01/2007 4,484
3,750 EOP Operating LP, Note,
7.750% due 11/15/2007 4,248
3,500 Health Care Property Investors,
Inc., Note,
6.875% due 06/08/2005 3,618
3,000 Nationwide Health Properties Inc.,
Note, 9.750% due 03/20/2008 3,436
----------
24,227
----------
Auto Manufacturing & Parts - 3.6%
4,000 Ford Motor Credit Company, Note,
6.500% due 01/25/2007 4,244
5,000 Toyota Motor Credit Corporation, Note,
5.650% due 01/15/2007 5,337
----------
9,581
----------
Principal
Amount Value
(000s) (000s)
--------- ------
Consumer Products/Services - 4.7%
$5,750 Carnival Corporation, Company
Guarantee, 3.750% due 11/15/2007** $ 5,737
3,500 PHH Corporation, Note,
6.000% due 03/01/2008 3,743
3,000 Sealed Air Corporation, Conv.
Sr. Note, 3.000% due 06/30/2033** 3,034
----------
12,514
----------
Utilities - 3.3%
4,000 Constellation Energy Group, Inc.,
Note, 6.350% due 04/01/2007 4,301
1,650 Pacific Gas & Electric Company, First
Mortgage, 3.600% due 03/01/2009 1,602
2,750 Texas-New Mexico Power Company, Sr.
Note, 6.250% due 01/15/2009 2,836
----------
8,739
----------
Telecommunications - 3.3%
3,250 Deutsche Telekom International
Finance BV, Company Guarantee,
8.250% due 06/15/2005 3,460
1,500 TELUS Corporation, Note,
7.500% due 06/01/2007 1,659
3,500 Verizon Global Funding Corporation,
Note, 4.000% due 01/15/2008 3,540
----------
8,659
----------
Cable TV - 3.2%
4,000 AOL Time Warner Inc., Note,
6.150% due 05/01/2007 4,283
4,000 Cox Enterprises, Inc., Note,
4.375% due 05/01/2008** 4,023
----------
8,306
----------
Food - 2.4%
2,000 ConAgra Inc., Sr. Note,
9.875% due 11/15/2005 2,210
4,000 Safeway Inc., Sr. Note,
6.150% due 03/01/2006 4,236
----------
6,446
----------
Airlines - 1.6%
4,000 Southwest Airlines Company, Pass-thru
Certificates,
5.496% due 11/01/2006 4,223
----------
Paper/Forest Products - 1.4%
3,500 Weyerhaeuser Company, Note,
6.000% due 08/01/2006 3,714
----------
Chemicals/Mining/Machinery - 1.2%
3,250 Consolidated Coal Company, Company
Guarantee, 8.210% due 06/21/2004 3,270
----------
Information Technology - 1.2%
3,000 Computer Science Corporation, Note,
6.750% due 06/15/2006 3,237
----------
See Notes to Financial Statements.
25
portfolio of investments (continued)
SHORT TERM INCOME FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
CORPORATE BONDS AND NOTES - (continued)
Aerospace/Defense - 0.8%
$ 2,000 Boeing Capital Corporation,
Sr. Note, 5.650% due 05/15/2006 $ 2,111
----------
Retail - 0.2%
500 Federated Department Stores Inc.,
Bond, 6.790% due 07/15/2027 518
----------
Total Corporate Bonds and Notes
(Cost $146,441) 150,293
----------
ASSET-BACKED SECURITIES - 6.0%
4,250 Atlantic City Electric Transition
Funding LLC, Series 2003-1,
Class A1, 2.890% due 07/20/2011 4,223
5,000 Capital One Multi-Asset Execution
Trust, Series 2003-A6, Class A6,
2.950% due 08/17/2009 5,006
FFCA Secured Lending Corporation:
2,689 Series 1999-1A, Class A1A,
6.370% due 10/18/2025** 2,696
746 Series 1999-2, Class WA1A,
7.130% due 02/18/2026** 753
120 Green Tree Financial Corporation,
Series 1995-6, Class B1,
7.700% due 09/15/2026 77
3,200 Residential Asset Mortgage Products,
Inc., Series 2003-RS4, Class AI3,
2.742% due 11/25/2028 3,169
----------
Total Asset-Backed Securities
(Cost $16,002) 15,924
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.8%
Federal Home Loan Bank, Bond:
4,000 1.625% due 04/15/2005 4,001
4,000 1.875% due 06/15/2006 3,946
4,000 2.500% due 12/15/2005 4,023
Federal Home Loan Mortgage
Corporation:
3,500 Bond, 3.250% due 02/25/2008 3,445
Note:
2,000 4.250% due 06/15/2005 2,055
4,000 6.875% due 01/15/2005 4,153
Federal National Mortgage Association:
Note:
4,000 4.250% due 07/15/2007 4,123
3,000 5.500% due 02/15/2006 3,164
5,000 Sub. Note, 4.000% due 09/02/2008 5,004
----------
Total U.S. Government Agency
Obligations
(Cost $33,636) 33,914
----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 2.8%
Adjustable Rate Mortgage-Backed Securities (ARMS) - 1.1%
94 Federal Home Loan Mortgage Corporation
(FHLMC), 3.300% due 11/01/2021+ 97
Principal
Amount Value
(000s) (000s)
--------- ------
Federal National Mortgage
Association (FNMA):
$ 9 3.213% due 11/01/2022+ $ 9
20 3.250% due 11/01/2021+ 21
2,675 4.646% due 11/01/2032+ 2,731
90 4.685% due 11/01/2035+ 92
50 4.766% due 01/01/2019+ 51
37 5.584% due 04/01/2019+ 37
----------
Total ARMS
(Cost $3,072) 3,038
----------
Federal Home Loan Mortgage Corporation
(FHLMC) - 0.9%
2,144 6.000% due 04/01/2017-05/01/2017 2,240
47 9.500% due 08/01/2016 52
----------
Total FHLMC
(Cost $2,233) 2,292
----------
Federal National Mortgage Association (FNMA) - 0.6%
1,306 6.500% due 01/01/2012-01/01/2014 1,386
71 8.500% due 11/01/2017 78
38 10.000% due 05/01/2022 43
----------
Total FNMA
(Cost $1,423) 1,507
----------
Government National Mortgage Association
(GNMA) - 0.2%
15 8.000% due 03/15/2012 16
17 9.000% due 04/20/2025 19
179 10.000% due 01/15/2019-02/15/2019 203
173 11.000% due 02/15/2010-08/15/2020 197
----------
Total GNMA
(Cost $414) 435
----------
Total U.S. Government Agency Mortgage-
Backed Securities
(Cost $7,142) 7,272
----------
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO) - 10.2%
Federal Home Loan Mortgage
Corporation:
5,000 Series 2442, Class PG,
6.000% due 06/15/2030 5,269
1,683 Series 2541, Class LU,
4.000% due 12/15/2027 1,701
5,000 Series 2552, Class KB,
4.250% due 06/15/2027 5,051
3,837 Series 2575, Class LM,
4.500% due 05/15/2032 3,888
5,000 Federal National Mortgage Association,
Series 2002-58, Class HB,
5.500% due 11/25/2015 5,158
5,767 Government National Mortgage
Association, Series 2002-70,
Class PA, 4.500% due 08/20/2032 5,733
----------
Total CMO
(Cost $26,739) 26,800
----------
U.S. TREASURY NOTES - 4.7%
5,000 1.500% due 02/28/2005 5,003
6,000 2.000% due 05/15/2006 5,962
1,500 6.000% due 08/15/2004 1,522
----------
Total U.S. Treasury Notes
(Cost $12,509) 12,487
----------
See Notes to Financial Statements.
26
portfolio of investments (continued)
SHORT TERM INCOME FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) - 0.7%
(Cost $1,761)
$1,761 GMAC Commercial Mortgage Securities
Inc., Series 1999-CTL1, Class A,
7.150% due 12/15/2016** $1,883
----------
REPURCHASE AGREEMENT - 7.3%
(Cost $19,132)
19,132 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $19,133,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$19,521,000) 19,132
----------
TOTAL INVESTMENTS++ (Cost $263,362*) 101.4% 267,705
OTHER ASSETS AND LIABILITIES (Net) (1.4) (3,576)
----- ----------
NET ASSETS 100.0% $ 264,129
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Security acquired in a transaction exempt from registration under Rule 144A
of the Securities Act of 1933.
+ Variable rate security. The interest rate shown reflects the rate in effect
at April 30, 2004.
++ All securities segregated as collateral for futures contracts.
Unrealized
Number of Value Appreciation
Contracts (000s) (000s)
--------- ----- ------------
Futures Contracts-Short Position
100 U.S. 5 Year Treasury Note,
June 2004 $10,994 $ 238
==========
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
MTN -- Medium Term Note
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
27
portfolio of investments
U.S. GOVERNMENT SECURITIES FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 72.6%
Federal Home Loan Mortgage Corporation (FHLMC) - 32.2%
$ 19,994 4.000% due 08/01/2018 $ 19,275
45,303 4.500% due 04/01/2018-08/01/2033 44,123
84,499 5.000% due 04/01/2018-08/01/2033 82,559
137,615 5.500% due 11/01/2018-01/01/2034 137,952
83,090 6.000% due 04/01/2017-12/01/2033 85,457
55,217 6.500% due 02/01/2011-01/01/2032 57,850
17,687 7.000% due 07/01/2024-04/01/2032 18,735
7,881 7.500% due 12/01/2006-02/01/2031 8,421
504 8.000% due 12/01/2030 545
963 8.500% due 04/01/2019-07/01/2029 1,044
106 8.750% due 01/01/2013 113
179 9.000% due 12/01/2008-08/01/2022 198
108 9.500% due 06/01/2016-05/01/2017 120
----------
Total FHLMC
(Cost $460,971) 456,392
----------
Federal National Mortgage Association (FNMA) - 31.9%
19,665 4.500% due 12/01/2018 19,398
79,651 5.000% due 04/01/2018-03/01/2034 79,911
144,088 5.500% due 02/01/2009-04/01/2034** 145,033
100,426 6.000% due 12/01/2016-03/01/2034 103,365
73,908 6.500% due 09/01/2024-02/01/2033 77,083
3,123 6.820% due 02/01/2011 3,333
15,821 7.000% due 06/01/2010-07/01/2032 16,762
5,929 7.500% due 12/01/2024-02/01/2030 6,372
570 8.000% due 05/01/2022-01/01/2025 610
84 8.500% due 02/01/2023-09/01/2025 92
912 9.000% due 02/01/2017-09/01/2030 999
----------
Total FNMA
(Cost $456,286) 452,958
----------
Government National Mortgage Association
(GNMA) - 8.5%
64,711 5.500% due 07/20/2033-03/20/2034 64,751
29,772 6.000% due 04/20/2026-07/20/2033 30,572
8,333 6.500% due 03/15/2024-07/15/2032 8,704
340 6.800% due 04/20/2025 361
6,404 7.000% due 07/15/2008-06/20/2031 6,813
4,922 7.500% due 03/15/2024-11/15/2029 5,291
407 7.750% due 12/15/2029 442
1,261 8.000% due 04/15/2022-06/20/2030 1,375
111 8.500% due 05/15/2022 123
865 9.000% due 11/15/2021 973
1,750 9.500% due 04/15/2016-08/15/2021 1,969
14 13.500% due 09/15/2014-12/15/2014 16
----------
Total GNMA
(Cost $120,866) 121,390
----------
Adjustable Rate Mortgage-Backed Securities
(ARMS) - 0.0% ++
(Cost $214)
214 Federal National Mortgage Association
(FNMA), 3.493% due 03/01/2028+ 220
----------
Total U.S. Government Agency Mortgage-
Backed Securities
(Cost $1,038,337) 1,030,960
----------
Principal
Amount Value
(000s) (000s)
--------- ------
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO) - 13.6%
Credit Suisse First Boston Mortgage
Securities Corporation:
$ 21,542 Series 2003-8, Class 1A1,
5.750% due 04/25/2033 $ 21,472
21,000 Series 2003-11, Class 1A3,
4.500% due 06/25/2033 20,793
Federal Home Loan Mortgage
Corporation:
331 Series 1049, Class F,
2.025% due 02/15/2021+ 331
2,000 Series 1652, Class PL,
7.000% due 01/15/2024 2,154
1,442 Series 1981, Class C,
6.500% due 08/15/2027 1,505
10,000 Series 2435, Class GE,
6.500% due 06/15/2031 10,583
5,500 Series 2442, Class PG,
6.000% due 06/15/2030 5,796
24,000 Series 2449, Class ND,
6.500% due 05/15/2030 25,320
12,122 Series 2481, Class VC,
6.000% due 06/15/2017 12,770
9,000 Series 2551, Class QK,
5.500% due 01/15/2033 9,039
13,045 Series 2575, Class LM,
4.500% due 05/15/2032 13,221
Federal National Mortgage Association:
7,000 Grantor Trust, Series 2000-T5,
Class B, 7.300% due 05/25/2010 8,005
19,509 Series 2002-16, Class TM,
7.000% due 04/25/2032 20,710
966 Trust 259 STRIP,
Zero Coupon due 04/01/2024 209
Federal National Mortgage Association,
REMIC, Pass-through Certificates:
240 Series 1990-49, Class G,
9.000% due 05/25/2020 260
339 Series 1993-162, Class E,
6.000% due 08/25/2023 347
220 Series 1997-32, Class FA,
1.725% due 04/25/2027+ 222
2,292 Government National Mortgage
Association,
Series 2000-16, Class PB,
7.500% due 02/16/2028 2,364
21,000 GSR Mortgage Loan Trust,
Series 2003-4F,
Class 2A3, 5.000% due 05/25/2033 20,949
139 L.F. Rothschild Mortgage Trust,
Series 3, Class Z,
9.950% due 09/01/2017 153
17,000 Residential Funding Mortgage Security,
Series 2003-S20, Class 1A4,
5.500% due 12/25/2033 16,889
----------
Total CMO
(Cost $192,597) 193,092
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 3.6%
10,000 Federal Home Loan Bank, Bond,
2.875% due 09/15/2006 10,038
10,000 Federal Home Loan Mortgage
Corporation,
Sub. Note, 5.875% due 03/21/2011 10,637
See Notes to Financial Statements.
28
portfolio of investments (continued)
U.S. GOVERNMENT SECURITIES FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
U.S. GOVERNMENT AGENCY OBLIGATIONS - (continued)
Federal National Mortgage Association:
$10,000 Bond, 3.250% due 01/15/2008 $ 9,907
1,250 Deb., 6.210% due 08/06/2038 1,329
7,500 Note, 6.000% due 05/15/2008 8,150
10,000 Sub. Note,
6.250% due 02/01/2011 10,856
----------
Total U.S. Government Agency
Obligations (Cost $48,672) 50,917
----------
U.S. TREASURY NOTES - 4.9%
15,000 3.000% due 11/15/2007 14,967
20,000 3.250% due 08/15/2007 20,172
17,000 4.000% due 02/15/2014 16,336
18,000 4.250% due 11/15/2013 17,664
----------
Total U.S. Treasury Notes
(Cost $70,816) 69,139
----------
REPURCHASE AGREEMENT - 6.5%
(Cost $92,829)
92,829 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $92,836,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$94,715,000) 92,829
----------
TOTAL INVESTMENTS+++ (Cost $1,443,251*) 101.2% 1,436,937
OTHER ASSETS AND LIABILITIES (Net) (1.2) (17,475)
----- ----------
NET ASSETS 100.0% $1,419,462
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** A portion of these securities has been purchased on a when-issued basis.
+ Variable rate security. The interest rate shown reflects the rate in effect
at April 30, 2004.
++ Amount represents less than 0.1% of total net assets.
+++ All securities segregated as collateral for when-issued securities.
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
REMIC -- Real Estate Mortgage Investment Conduit
STRIP -- Separate trading of registered interest and
principal of securities
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
29
portfolio of investments
INCOME FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
CORPORATE BONDS AND NOTES - 62.7%
Utilities - 8.5%
$ 5,000 Arizona Public Service Company, Note,
6.500% due 03/01/2012 $ 5,388
10,000 Constellation Energy Group, Inc.,
Note, 7.000% due 04/01/2012 11,088
10,000 Dominion Resources, Inc., Sr. Note,
5.000% due 03/15/2013 9,737
Illinois Power Company, First
Mortgage:
9,000 7.500% due 06/15/2009 10,035
1,000 11.500% due 12/15/2010 1,190
7,000 Metropolitan Edison Company, Sr. Note,
4.950% due 03/15/2013 6,749
5,000 Ohio Power Company, Sr. Note,
5.500% due 02/15/2013 5,106
Oncor Electric Delivery Company, Deb.:
1,000 5.000% due 09/01/2007 1,048
8,000 7.000% due 09/01/2022 8,633
10,250 Pacific Gas & Electric Company,
First Mortgage,
4.200% due 03/01/2011 9,849
5,000 PPL Energy Supply LLC, Sr. Note,
6.400% due 11/01/2011 5,382
2,000 Public Service Company of New Mexico,
Sr. Note,
4.400% due 09/15/2008 2,011
5,000 Sempra Energy, Note,
6.000% due 02/01/2013 5,233
6,500 Southwestern Electric Power Company,
Note, 5.375% due 04/15/2015 6,446
6,845 Texas-New Mexico Power Company,
Sr. Note, 6.250% due 01/15/2009 7,058
1,000 WPD Holdings UK, Jr. Note,
6.750% due 12/15/2004** 1,024
----------
95,977
----------
Oil & Gas - 8.5%
1,600 Burlington Resources Inc., Deb.,
9.125% due 10/01/2021 2,072
7,500 Consolidated Natural Gas Company,
Sr. Note, 6.850% due 04/15/2011 8,349
10,000 El Paso Natural Gas Company, Deb.,
7.500% due 11/15/2026 9,675
6,000 Enterprise Products Partners LP,
Company Guarantee,
6.375% due 02/01/2013 6,223
5,262 Express Pipeline LP, Sub. Note,
7.390% due 12/31/2017** 5,323
1,500 Hanover Compressor Company,
Conv. Sr. Note,
4.750% due 03/15/2008 1,419
NiSource Finance Corporation:
5,000 Bond, 5.400% due 07/15/2014 4,943
5,000 Sr. Note, 6.150% due 03/01/2013 5,257
PDVSA Finance Ltd.:
8,470 Note, 8.500% due 11/16/2012 7,835
3,000 Sr. Note, 9.750% due 02/15/2010 3,015
Principal
Amount Value
(000s) (000s)
--------- ------
Petro-Canada:
$ 8,500 Deb., 9.250% due 10/15/2021 $ 11,156
3,000 Note, 4.000% due 07/15/2013 2,722
8,000 Petrobras International Finance
Company, Sr. Note, 9.750%
due 07/06/2011 8,840
Southern Natural Gas Company,
Sr. Note:
4,000 8.000% due 03/01/2032 4,020
1,000 8.875% due 03/15/2010 1,110
2,000 Tennessee Gas Pipeline Company, Bond,
8.375% due 06/15/2032 2,060
4,500 Tesoro Petroleum Corporation, Note,
8.000% due 04/15/2008 4,871
5,750 Trans-Canada Pipeline Corporation,
Deb., 8.500% due 03/20/2023 5,986
----------
94,876
----------
Financial Services/Banks - 7.9%
175 Abbey National First Capital BV, Sub.
Note, 8.200% due 10/15/2004 180
1,500 Aetna Inc., Company Guarantee,
7.625% due 08/15/2026 1,688
400 Banc One Corporation, Sub. Note,
10.000% due 08/15/2010 512
5,000 Bank of America Corporation, Sub.
Note, 7.800% due 02/15/2010 5,821
1,000 BankAmerica Corporation, Sub. Note,
6.625% due 08/01/2007 1,096
690 BB&T Corporation, Sub. Note,
7.250% due 06/15/2007 783
2,500 CIT Group Inc., Sr. Note,
7.750% due 04/02/2012 2,891
10,000 Citigroup Inc. Note,
6.000% due 02/21/2012 10,770
1,000 First Nationwide Bank, Sub. Deb.,
10.000% due 10/01/2006 1,147
995 Fleet Financial Group, Inc.,
Sub. Deb.,
6.875% due 01/15/2028 1,080
10,000 Goldman Sachs Group, Inc., Note,
6.600% due 01/15/2012 10,967
7,500 Jefferies Group, Inc., Sr. Note,
7.750% due 03/15/2012 8,725
1,000 Key Bank NA, Sub. Deb.,
6.950% due 02/01/2028 1,080
3,000 Legg Mason, Inc., Sr. Note,
6.750% due 07/02/2008 3,289
MBNA Corporation:
3,000 Note, 6.250% due 01/17/2007 3,214
2,000 Sr. Note, 7.500% due 03/15/2012 2,299
Merrill Lynch & Company Inc., Note:
5,000 6.000% due 02/17/2009 5,392
1,450 6.500% due 07/15/2018 1,609
2,000 6.750% due 06/01/2028 2,138
7,500 Morgan Stanley Dean Witter & Company,
Unsub. Note, 6.750% due 04/15/2011 8,297
See Notes to Financial Statements.
30
portfolio of investments (continued)
INCOME FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
CORPORATE BONDS AND NOTES - (continued)
Financial Services/Banks - (continued)
$ 670 NationsBank Corporation, Sub. Note,
6.800% due 03/15/2028 $ 718
1,000 Norwest Bancorp, Sub. Deb.,
6.650% due 10/15/2023 1,074
Paine Webber Group, Inc., Sr. Note:
415 7.390% due 10/16/2017 470
830 8.060% due 01/17/2017 960
500 PNC Institute Capital B, Company
Guarantee,
8.315% due 05/15/2027** 553
1,750 SB Treasury Company LLC, Bond,
9.400% to 06/30/2008;
10.925% due 12/29/2049** 2,015
11,000 Wells Fargo & Company, Sub. Note,
4.625% due 04/15/2014 10,446
----------
89,214
----------
Consumer Products/Services - 5.7%
1,000 Allied Waste North America, Inc.,
Sr. Note,
7.875% due 04/15/2013 1,080
4,000 Cendant Corporation, Note,
6.875% due 08/15/2006 4,337
5,000 ConAgra, Inc., Sr. Note,
7.125% due 10/01/2026 5,582
350 CPC International, Inc., Note,
6.150% due 01/15/2006 370
3,650 International Speedway Corporation,
Company Guarantee,
7.875% due 10/15/2004 3,744
Mattel, Inc., Note:
1,750 6.125% due 07/15/2005 1,815
1,000 7.300% due 06/13/2011 1,104
10,000 Reed Elsevier Capital,
Company Guarantee,
6.750% due 08/01/2011 11,359
Royal Caribbean Cruises Ltd.:
2,000 Deb., 7.250% due 03/15/2018 2,005
Sr. Note:
1,250 8.000% due 05/15/2010 1,369
3,000 8.750% due 02/02/2011 3,397
Sealed Air Corporation:
6,500 Company Guarantee,
8.750% due 07/01/2008** 7,566
7,250 Conv. Sr. Note,
3.000% due 06/30/2033** 7,332
4,000 Note,
5.625% due 07/15/2013** 4,042
USA Waste Services, Inc., Sr. Note:
1,000 7.000% due 07/15/2028 1,056
495 7.125% due 10/01/2007 549
Waste Management Inc.:
3,450 Company Guarantee,
6.875% due 05/15/2009 3,822
3,500 Sr. Note,
7.375% due 08/01/2010 3,984
----------
64,513
----------
Principal
Amount Value
(000s) (000s)
--------- ------
Real Estate Investment Trusts - 5.2%
$ 2,000 American Health Properties, Inc.,
Note, 7.500% due 01/15/2007 $ 2,185
10,000 Developers Diversified Realty
Corporation, Note,
4.625% due 08/01/2010 9,836
Franchise Finance Corporation:
3,000 MTN, 7.070% due 01/15/2008 3,381
1,100 Sr. Note,
7.875% due 11/30/2005 1,197
Health Care Property Investors, Inc.:
1,750 Note:
6.000% due 03/01/2015 1,795
1,000 6.875% due 06/08/2005 1,034
Sr. Note:
3,000 6.450% due 06/25/2012 3,252
1,000 6.500% due 02/15/2006 1,053
5,000 Health Care REIT, Inc., Sr. Note,
7.500% due 08/15/2007 5,583
7,500 Healthcare Realty Trust, Inc.,
Sr. Note,
8.125% due 05/01/2011 8,702
Nationwide Health Properties
Inc., Note:
1,500 7.060% due 12/05/2006 1,606
8,500 9.750% due 03/20/2008 9,737
9,000 Shurgard Storage Centers, Inc., Note,
5.875% due 03/15/2013 8,982
----------
58,343
----------
Health Care - 4.7%
4,500 Aetna Inc., Sr. Note,
7.375% due 03/01/2006 4,882
1,500 American Home Products Corporation,
Deb., 7.250% due 03/01/2023 1,610
2,000 Athena Neurosciences Finance LLC,
Company Guarantee,
7.250% due 02/21/2008 2,035
10,000 Cardinal Health, Inc., Note,
6.750% due 02/15/2011 11,234
DVI, Inc., Sr. Note, (in default):
400 9.875% due 02/01/2004++ 104
8,125 9.875% due 02/01/2004++ 2,112
HCA Inc.:
3,000 Note, 5.250% due 11/06/2008 3,004
5,000 Sr. Note, 6.950% due 05/01/2012 5,232
4,850 HIH Capital Ltd., Conv. Note,
7.500% due 09/25/2006 4,195
7,350 IVAX Corporation, Conv. Sr. Sub. Note,
4.500% due 05/15/2008 7,460
12,000 Tenet Healthcare Corporation,
Sr. Note, 6.375% due 12/01/2011 10,530
----------
52,398
----------
Transportation/Auto - 4.0%
Burlington Northern Santa Fe:
5,000 Deb., 8.125% due 04/15/2020 5,941
See Notes to Financial Statements.
31
portfolio of investments (continued)
INCOME FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
CORPORATE BONDS AND NOTES - (continued)
Transportation/Auto - (continued)
$ 1,500 Note,8.750% due 02/25/2022 $ 1,895
3,030 Consolidated Rail Corporation, Deb.,
9.750% due 06/15/2020 4,094
2,000 Ford Holdings Inc., Company Guarantee,
9.300% due 03/01/2030 2,249
Ford Motor Company, Deb.:
825 7.400% due 11/01/2046 762
3,750 8.900% due 01/15/2032 4,175
5,000 Ford Motor Credit Company, Sr. Note,
5.800% due 01/12/2009 5,098
8,000 General Motors Corporation, Deb.,
9.400% due 07/15/2021 9,212
5,000 Norfolk Southern Corporation,
Sr. Note, 6.200% due 04/15/2009 5,425
United Air Lines Inc.:
5,000 Equipment Trust Certificates,
(in default),
10.850% due 07/05/2014 2,125
Pass-through Certificates,
(in default):
3,000 9.080% due 10/26/2015 942
5,500 9.560% due 10/19/2018 2,469
----------
44,387
----------
Information Technology - 3.2%
5,000 BEA Systems Inc., Conv. Sub. Note,
4.000% due 12/15/2006 5,044
11,250 Conexant Systems Inc., Conv. Sub. Note,
4.000% due 02/01/2007 11,151
5,000 Extreme Networks, Inc., Conv. Sub. Note,
3.500% due 12/01/2006 4,900
3,900 RadiSys Corporation, Conv. Sub. Note,
5.500% due 08/15/2007 3,720
11,250 TriQuint Semiconductor, Inc., Conv.
Sub. Note,
4.000% due 03/01/2007 11,152
----------
35,967
----------
Telecommunications - 3.0%
5,000 Deutsche Telephone Finance, Bond,
8.500% due 06/15/2010 5,915
8,000 Qwest Corporation, Note,
9.125% due 03/15/2012** 8,540
2,000 Tele-Communications, Inc., Sr. Deb.,
7.875% due 08/01/2013 2,312
7,000 TELUS Corporation, Note,
8.000% due 06/01/2011 8,131
8,000 Vodafone Group, PLC, Note,
7.750% due 02/15/2010 9,275
----------
34,173
----------
Gaming - 2.5%
5,000 Circus Circus Enterprise Inc., Deb.,
7.000% due 11/15/2036 5,375
3,500 Harrah's Operating Company Inc.,
Company Guarantee,
8.000% due 02/01/2011 4,049
Principal
Amount Value
(000s) (000s)
--------- ------
$ 3,000 Mandalay Resort Group, Sr. Sub. Note,
Series B, 10.250% due 08/01/2007 $ 3,502
Park Place Entertainment
Corporation, Sr. Note:
1,500 7.500% due 09/01/2009 1,643
5,000 8.500% due 11/15/2006 5,500
7,900 Riviera Holdings Corporation, Company
Guarantee, 11.000% due 06/15/2010 8,453
----------
28,522
----------
Media - 2.5%
Comcast Cable Communications Inc.:
550 Note, 6.200% due 11/15/2008 591
7,000 Sr. Note, 7.125% due 06/15/2013 7,771
7,500 Cox Communications, Inc., Note,
6.750% due 03/15/2011 8,206
2,000 Dex Media East LLC, Company Guarantee,
12.125% due 11/15/2012 2,330
2,000 FrontierVision Operating Partners LP,
Sr. Sub. Note, (in default),
11.000% due 10/15/2006 2,430
5,260 Time Warner Inc., Deb.,
9.150% due 02/01/2023 6,586
----------
27,914
----------
Industrial Products - 1.9%
5,000 Champion International Corporation,
Deb., 7.200% due 11/01/2026 5,653
6,000 Corn Products International, Inc.,
Sr. Note, 8.450% due 08/15/2009 6,930
Covanta Energy Corporation:
3,029 Sr. Sec. Note,
8.250% due 03/15/2011 2,620
939 Term Loan, (Partial payment-in-kind),
10.500% due 03/15/2007 808
1,250 Great Lakes Dredge & Dock Company,
Sr. Sub. Note,
7.750% due 12/15/2013** 1,238
250 Lennar Corporation, Sr. Note,
7.625% due 03/01/2009 281
Weyerhaeuser Company:
1,500 Deb., 7.375% due 03/15/2032 1,648
1,500 Note, 6.750% due 03/15/2012 1,647
----------
20,825
----------
Foreign Government (U.S. Dollar Denominated) - 1.6%
4,691 Federative Republic of Brazil, C-Bond,
8.000% due 04/15/2014 4,335
10,000 Republic of Ecuador, Bond,
7.000% to 08/15/2004;
8.000% to 08/15/2005;
9.000% to 08/15/2006;
10.000% due 08/15/2030 7,062
5,000 United Mexican States, Bond,
9.875% due 02/01/2010 6,145
----------
17,542
----------
See Notes to Financial Statements.
32
portfolio of investments (continued)
INCOME FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
CORPORATE BONDS AND NOTES - (continued)
Index Product - 1.4%
$16,250 Dow Jones Trac-X North America High
Yield Series 2 March 2009 Trust 1,
Credit-Linked Note,
7.375% due 03/25/2009** $15,905
----------
Retail - 1.1%
5,000 Fred Meyer Inc., Company Guarantee,
7.450% due 03/01/2008 5,630
5,000 Safeway Inc., Note,
7.500% due 09/15/2009 5,684
690 Saks Inc., Company Guarantee,
7.000% due 12/01/2013** 707
----------
12,021
----------
Aerospace/Defense - 1.0%
Lockheed Martin Corporation:
955 Company Guarantee,
7.750% due 05/01/2026 1,118
5,000 Note, 8.200% due 12/01/2009 5,946
1,000 Loral Corporation, Deb.,
7.625% due 06/15/2025 1,159
2,750 Orbital Sciences Corporation, Sr. Note,
9.000% due 07/15/2011 3,025
----------
11,248
----------
Total Corporate Bonds and Notes
(Cost $670,731) 703,825
----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES - 24.1%
Federal Home Loan Mortgage Corporation (FHLMC) - 11.9%
61,245 4.500% due 08/01/2033 57,568
39,126 5.000% due 04/01/2018-05/01/2033 38,580
18,396 5.500% due 11/01/2017-05/01/2031 18,798
7,651 6.000% due 03/01/2031-05/01/2032 7,833
7,464 6.500% due 01/01/2029-08/01/2029 7,781
2,366 7.000% due 01/01/2032 2,499
----------
Total FHLMC
(Cost $134,347) 133,059
----------
Federal National Mortgage Association (FNMA) - 11.3%
50,067 4.000% due 09/01/2018-10/01/2018 48,239
15,898 5.000% due 01/01/2018-10/01/2032 15,793
37,978 5.500% due 03/01/2033-06/01/2033 37,957
2,980 6.000% due 04/01/2032 3,051
11,651 6.500% due 09/01/2028-05/01/2032 12,134
244 7.000% due 01/01/2030 258
298 7.536% due 06/01/2016 322
8,000 7.630% due 02/01/2010 9,054
----------
Total FNMA
(Cost $127,809) 126,808
----------
Principal
Amount Value
(000s) (000s)
--------- ------
Government National Mortgage Association
(GNMA) - 0.9%
$ 8,774 6.000% due 05/20/2032 $ 8,994
1,470 7.000% due 06/20/2031 1,559
----------
Total GNMA
(Cost $10,199) 10,553
----------
Total U.S. Government Agency Mortgage-
Backed Securities
(Cost $272,355) 270,420
----------
U.S. TREASURY NOTES - 7.5%
20,000 2.625% due 03/15/2009 19,146
36,000 4.000% due 11/15/2012 35,075
20,000 4.250% due 08/15/2013 19,672
10,000 4.250% due 11/15/2013 9,813
----------
Total U.S. Treasury Notes
(Cost $86,095) 83,706
----------
COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) - 0.1%
(Cost $1,526)
1,523 Reilly Mortgage FHA, Series 1982,
(Partial default),
7.430% due 08/01/2022 1,523
----------
Shares
------
CONVERTIBLE PREFERRED STOCK - 0.5%
(Cost $5,100)
100,000 Ford Motor Company Capital Trust II,
Conv. Pfd., 6.500% due 01/15/2032 5,643
----------
RIGHTS - 0.1%
(Cost $539)
153,563 Danielson Holding Corporation-Rights+ 498
----------
See Notes to Financial Statements.
33
portfolio of investments (continued)
INCOME FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
REPURCHASE AGREEMENT - 4.0%
(Cost $44,993)
$ 44,993 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $44,997,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note, 6.750%
due 05/15/2005, market value
$45,907,000) $ 44,993
----------
TOTAL INVESTMENTS (Cost $1,081,339*) 99.0% 1,110,608
OTHER ASSETS AND LIABILITIES (Net) 1.0 11,170
----- ----------
NET ASSETS 100.0% $1,121,778
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Security acquired in a transaction exempt from registration under Rule 144A
of the Securities Act of 1933.
+ Non-income producing security.
++ Defaulted security is past maturity but continues to be valued by an
independent pricing service in recognition of future potential worth.
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
FHA -- Federal Housing Authority
MTN -- Medium Term Note
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
34
portfolio of investments
HIGH YIELD FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
CORPORATE BONDS AND NOTES - 90.2%
Telecommunications - 13.7%
$ 16,250 Extreme Networks, Inc., Conv. Sub.
Note, 3.500% due 12/01/2006 $ 15,925
17,500 Nortel Networks Corporation, Conv.
Company Guarantee,
4.250% due 09/01/2008 16,494
13,500 Qwest Corporation, Note,
8.875% due 03/15/2012** 14,411
13,700 RadiSys Corporation, Conv. Sub. Note,
5.500% due 08/15/2007 13,066
17,710 TriQuint Semiconductor, Inc., Conv.
Sub. Note, 4.000% due 03/01/2007 17,555
16,000 Western Wireless Corporation,
Sr. Note,
9.250% due 07/15/2013 16,520
----------
93,971
----------
Oil/Energy - 12.9%
El Paso Natural Gas:
12,500 Bond, 8.375% due 06/15/2032 12,500
2,750 Sr. Note, 7.625% due 08/01/2010 2,846
Hanover Compressor Company:
7,950 Conv. Sr. Note,
4.750% due 03/15/2008 7,523
10,250 Sr. Note,
8.625% due 12/15/2010 10,916
18,250 PDVSA Finance Ltd.,
Note, 8.500% due 11/16/2012 16,881
10,000 Petrobras International Finance
Company, Sr. Note, 9.750%
due 07/06/2011 11,050
7,500 Southern Natural Gas Company,
Sr. Note,
8.000% due 03/01/2032 7,537
Tesoro Petroleum Corporation:
6,000 Company Guarantee, Series B,
9.000% due 07/01/2008 6,255
10,000 Sr. Sub. Note,
9.625% due 04/01/2012 11,325
Tri-Union Development Corporation,
Company Guarantee, (in default):
2,962 12.500% due 06/01/2006 1,659
219 Series AI, (Payment-in-Kind),
12.500% due 06/01/2006** 123
----------
88,615
----------
Health Care - 12.8%
21,500 Athena Neurosciences Finance LLC,
Company Guarantee,
7.250% due 02/21/2008 21,876
DVI, Inc., Sr. Note, (in default):
10,375 9.875% due 02/01/2004++ 2,697
2,850 9.875% due 02/01/2004++ 741
HEALTHSOUTH Corporation:
12,250 Note, 7.625% due 06/01/2012 12,434
5,000 Sr. Note, 8.500% due 02/01/2008 5,100
Principal
Amount Value
(000s) (000s)
--------- ------
HIH Capital Ltd., Conv. Note:
$ 3,500 7.500% due 09/25/2006 $ 3,028
10,050 7.500% due 09/25/2006** 8,693
5,000 Inhale Therapeutic Systems, Inc.,
Conv. Sub. Note,
5.000% due 02/08/2007 5,150
14,850 IVAX Corporation, Conv. Sr. Sub. Note,
4.500% due 05/15/2008 15,073
4,000 Medarex, Inc., Conv. Jr. Sub. Note,
4.500% due 07/01/2006 4,095
4,000 Sepracor Inc., Conv. Sub. Deb.,
5.000% due 02/15/2007 4,125
498 Triad Hospitals, Inc., Company
Guarantee, 8.750% due 05/01/2009** 554
4,750 Vertex Pharmaceuticals Inc., Conv.
Sub. Note,
5.000% due 09/19/2007 4,495
----------
88,061
----------
Index Product - 9.8%
33,750 Dow Jones Trac-X North America High
Yield Series 2 March 2009 Trust 1,
Credit-Linked Note,
7.375% due 03/25/2009** 33,033
31,720 TRAINS (Targeted Return Index
Securities) Trust Series HY-2003-1,
Grantor Trust, 8.666% due
05/15/2015** 34,474
----------
67,507
----------
Utilities - 5.4%
Illinois Power Company, First Mortgage:
13,500 7.500% due 06/15/2009 15,053
4,000 11.500% due 12/15/2010 4,760
16,000 Reliant Resources, Inc., Sr. Note,
9.500% due 07/15/2013 17,440
----------
37,253
----------
Information Technology - 5.1%
14,000 BEA Systems Inc., Conv. Sub. Note,
4.000% due 12/15/2006 14,123
18,500 Conexant Systems Inc., Conv.
Sub. Note,
4.000% due 02/01/2007 18,338
2,950 Komag, Inc., Conv. Sub. Note,
2.000% due 02/01/2024 2,489
----------
34,950
----------
Foreign Government (U.S. Dollar Denominated) - 4.6%
18,471 Federative Republic of Brazil, C-Bond,
8.000% due 04/15/2014 17,069
20,500 Republic of Ecuador, Bond,
7.000% to 08/15/2004;
8.000% to 08/15/2005;
9.000% to 08/15/2006;
7.000% due 08/15/2030 14,478
----------
31,547
----------
Gaming - 4.1%
13,750 Diamond Jo, LLC/Peninsula Gaming
Corporation, Company Guarantee,
8.750% due 04/15/2012** 13,509
13,500 Riviera Holdings Corporation, Company
Guarantee, 11.000% due 06/15/2010 14,445
----------
27,954
----------
See Notes to Financial Statements.
35
portfolio of investments (continued)
HIGH YIELD FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
CORPORATE BONDS AND NOTES - (continued)
Media - 3.9%
$ 14,000 Carmike Cinemas, Inc., Sr. Sub. Note,
7.500% due 02/15/2014** $ 14,210
XM Satellite Radio Holdings Inc.,
Sr. Note:
6,900 12.000% due 06/15/2010 8,013
5,000 14.000% due 12/31/2009 4,837
----------
27,060
----------
Industrial Products - 3.5%
Jefferson Smurfit Corporation:
Company Guarantee:
7,000 7.500% due 06/01/2013 7,280
6,000 8.250% due 10/01/2012 6,450
10,000 Primus International Inc., Sr. Note,
10.500% due 04/15/2009** 10,000
----------
23,730
----------
Cable TV - 2.7%
5,500 Century Communications Corporation,
Sr. Note, (in default),
8.750% due 10/01/2007 6,105
5,250 FrontierVision Holdings LP, Sr. Disc.
Note, (in default),
11.875% due 09/15/2007 6,484
5,000 Olympus Communications LP, Sr. Note,
Series B, (in default),
10.625% due 11/15/2006 6,200
----------
18,789
----------
Services - 2.6%
16,500 Allied Waste North America, Inc.,
Sr. Note, 7.875% due 04/15/2013 17,820
----------
Consumer Products/Leisure - 2.3%
Royal Caribbean Cruises Ltd.:
3,000 Deb., 7.250% due 03/15/2018 3,007
11,500 Sr. Note, 8.750% due 02/02/2011 13,024
----------
16,031
----------
Transportation/Auto - 2.3%
Northwest Airlines, Inc.,
Pass-through Certificates:
9,008 Series 1999-2, Class B,
7.950% due 03/01/2015 7,599
9,275 Series 2001-1, Class B,
7.691% due 04/01/2017 7,818
----------
15,417
----------
Aerospace/Defense - 2.3%
14,000 Orbital Sciences Corporation,
Sr. Note,
9.000% due 07/15/2011 15,400
----------
Manufacturing - 2.2%
Covanta Energy Corporation:
2,589 Sr. Sec. Note,
8.250% due 03/15/2011 2,240
803 Term Loan,
(Partial Payment-in-Kind),
10.500% due 03/15/2007 690
Principal
Amount Value
(000s) (000s)
--------- ------
$ 12,050 Great Lakes Dredge & Dock Company,
Sr. Sub. Note,
7.750% due 12/15/2013** $ 11,930
----------
14,860
----------
Total Corporate Bonds and Notes
(Cost $582,479) 618,965
----------
Shares
------
COMMON STOCKS - 6.8%
57,845 Credence Systems Corporation+ 644
518,800 Health Care Property Investors, Inc. 12,399
404,500 Health Care REIT, Inc. 12,920
180,460 ICO Global Communications Holdings
Ltd.+ 194
206,173 Komag Inc.+ 2,621
123,430 Life Sciences Research, Inc.+ 302
985,100 Nationwide Health Properties Inc. 17,860
2,064 Tri-Union Development Corporation,
Class A+ 0***
3,500 Tribo Petroleum Corporation,
Class A+** 0***
----------
Total Common Stocks
(Cost $40,844) 46,940
----------
CONVERTIBLE PREFERRED STOCK - 0.8%
(Cost $4,597)
100,000 Ford Motor Company Capital Trust II,
Conv. Pfd., 6.500% due 01/15/2032 5,643
----------
RIGHTS - 0.1%
(Cost $461)
131 Danielson Holding Corporation-Rights+ 425
----------
WARRANTS - 0.0% +++
45,327 ICO Global Communications Holdings Ltd.,
Expires 05/16/2006+ 1
45,870 Komag Inc., Expires 06/30/2005+ 271
5,000 Mikohn Gaming Corporation,
Expires 08/15/2008+** 2
----------
Total Warrants
(Cost $12) 274
----------
See Notes to Financial Statements.
36
portfolio of investments (continued)
HIGH YIELD FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
REPURCHASE AGREEMENT - 1.0%
(Cost $6,926)
$6,926 Agreement with Morgan Stanley,
0.940% dated 04/30/2004, to be
repurchased at $6,927,000 on
05/03/2004 (Collateralized by
U.S. Treasury Note, 6.750% due
05/15/2005, market value
$7,067,000) $ 6,926
----------
TOTAL INVESTMENTS (Cost $635,319*) 98.9% 679,173
OTHER ASSETS AND LIABILITIES (Net) 1.1 7,284
----- ----------
NET ASSETS 100.0% $ 686,457
===== ==========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Security acquired in a transaction exempt from registration under Rule 144A
of the Securities Act of 1933.
*** Value of security is less than $500.
+ Non-income producing security.
++ Defaulted security is past maturity but continues to be valued by an
independent pricing service in recognition of future potential worth.
+++ Amount represents less than 0.1% of the net assets.
See Notes to Financial Statements.
37
portfolio of investments
TAX-EXEMPT BOND FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - 99.0%
Alaska - 3.5%
$ 4,500 Alaska State International Airports, Airport
& Marina Revenue, Series B, (AMBAC
Insured), 5.250% due 10/01/2027 $ 4,578
1,235 Anchorage, Electric Utilities, Power & Light
Revenue, Sr. Lien, (MBIA Insured),
6.500% due 12/01/2013 1,478
2,000 Anchorage, Ice Rink, Recreational Revenue,
6.375% due 01/01/2020 2,318
--------
8,374
--------
Arizona - 3.3%
1,000 Arizona School Facilities Board, COP,
Series A, (MBIA Insured),
5.250% due 09/01/2017 1,069
2,000 Arizona Tourism & Sports Authority,
Recreational Revenue, (Multipurpose
Stadium Facility Project), Series A,
(MBIA Insured),
5.375% due 07/01/2019 2,149
3,000 Salt River Project, Agricultural Improvement
& Power District, Electric Systems
Revenue, Series A,
5.750% due 01/01/2009 3,362
1,000 Tucson, Street & Highway User Revenue, Jr.
Lien, (Projects of 1994 & 2000),
(AMBAC Insured),
6.000% due 07/01/2013 1,156
--------
7,736
--------
California - 11.4%
1,000 Alameda County, Fremont Unified School
District, GO, Series A, (FGIC Insured),
5.000% due 08/01/2025 1,007
1,400 Anaheim, Unified High School District, GO,
Series A, (FSA Insured),
5.000% due 08/01/2025 1,409
California State Department of Water
Resources, Power Supply Revenue,
Series A:
1,000 6.000% due 05/01/2015 1,106
(AMBAC Insured):
2,000 5.375% due 05/01/2018 2,143
1,000 5.500% due 05/01/2016 1,092
3,000 (Inverse Floater), (MBIA-IBC Insured),
9.162% due 05/01/2011+*** 3,278
1,000 California State, GO, (AMBAC-TCRS
Insured), 5.125% due 10/01/2027 1,003
2,000 Center Unified School District, Capital
Appreciation, GO, Series C, (MBIA
Insured), Zero coupon due 09/01/2018 982
2,000 El Dorado Irrigation District, COP, Series A,
(FGIC Insured),
5.000% due 03/01/2021 2,036
Principal
Amount Value
(000s) (000s)
--------- ------
$ 2,000 Foothill Eastern Transportation Corridor
Agency, Capital Appreciation, Toll Road
Revenue, (MBIA Insured),
Zero coupon due 01/15/2018 $ 958
2,700 Jurupa, Unified School District, GO, (FGIC
Insured), 5.125% due 08/01/2022 2,786
1,140 Los Angeles, Unified School District, GO,
Series A, (FSA Insured),
5.250% due 07/01/2019 1,212
2,000 Orange County, COP, Series A, (MBIA
Insured), 6.000% due 07/01/2026 2,168
1,180 Palmdale, COP, (Park Improvement &
Avenue S Construction Project), (MBIA
Insured), 5.250% due 09/01/2018 1,254
270 Sacramento, COP, (Centrex System Lease),
Series A,
5.550% due 09/15/2004*** 273
2,000 San Francisco City and County, International
Airports Commission, Airport Revenue,
Second Series, Issue 29B, (FGIC Insured),
5.125% due 05/01/2020 2,074
7,000 San Joaquin Hills, Transportation Corridor
Agency, Toll Road Revenue, Series A,
(MBIA Insured),
Zero coupon due 01/15/2034 1,328
1,000 University of California, College & University
Revenue, Series A, (AMBAC Insured),
5.000% due 05/15/2033 998
--------
27,107
--------
Colorado - 1.6%
1,080 Boulder County, College & University
Development Revenue, (University
Corporation for Atmospheric Research),
(AMBAC Insured),
5.000% due 09/01/2020 1,110
1,000 Colorado Health Facility Authority, Health
Care Revenue, (Catholic Health Initiatives),
5.250% due 09/01/2021 1,016
1,650 Lakewood, COP, (AMBAC Insured),
5.350% due 12/01/2017 1,769
--------
3,895
--------
Connecticut - 1.1%
1,500 Connecticut State Special Obligation Parking,
Airport & Marina Revenue, (Bradley
International Airport), Series A, AMT,
(ACA Insured),
6.600% due 07/01/2024 1,610
995 Mashantucket Western Pequot Tribe, Special
Revenue, Series A, ETM,
6.500% due 09/01/2005*** 1,061
--------
2,671
--------
District of Columbia - 0.2%
500 District of Columbia, Water & Sewer
Authority, Public Utilities Revenue,
(FSA Insured),
5.500% due 10/01/2017 558
--------
See Notes to Financial Statements.
38
portfolio of investments (continued)
TAX-EXEMPT BOND FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
Florida - 10.0%
$ 250 Bay County, Water Systems Revenue,
(AMBAC Insured),
5.700% due 09/01/2030 $ 268
500 Brevard County, School Board Authority,
COP, Series B, (AMBAC Insured),
5.500% due 07/01/2021 534
450 Collier County, Industrial Development
Authority, IDR, (Southern States Utilities
Project), AMT,
6.500% due 10/01/2025 437
9,750 Dade County, Guaranteed Entitlement Revenue,
Series A, (MBIA Insured),
Zero coupon due 02/01/2018 4,614
1,000 Escambia County, Health Facilities Authority,
Health Facilities Revenue, (Florida Health
Care Facilities Loan-VHA Program),
(AMBAC Insured),
5.950% due 07/01/2020 1,045
650 Escambia County, Utilities Authority, Utility
Systems Revenue, (FGIC Insured),
5.250% due 01/01/2029 660
900 Florida Housing Finance Agency, Housing
Revenue, (Spinnaker Cove Apartments
Project), Series G, AMT, (AMBAC
Insured),
6.500% due 07/01/2036 934
235 Florida Housing Finance Agency, SFMR,
Series A, AMT, (GNMA/FNMA Collateral),
6.650% due 01/01/2024 242
800 Florida State Board of Education, Lottery
Revenue, Series A, (FGIC Insured),
5.250% due 07/01/2017 850
675 Florida State Municipal Power Agency,
Power & Light Revenue, (Stanton Project),
(FSA Insured),
5.500% due 10/01/2014 743
1,000 Hillsborough County, Port District Revenue,
(Tampa Port Authority Project), Series A,
AMT, (MBIA Insured),
5.375% due 06/01/2027 1,027
1,615 Jacksonville Electric Authority, Water &
Sewer Revenue, Series A,
5.000% due 10/01/2014 1,693
600 Jacksonville, Water & Sewer Revenue,
(United Waterworks Inc. Project), AMT,
(AMBAC Insured),
6.350% due 08/01/2025 639
265 Manatee County, Housing Finance Authority,
SFMR, Series 94-4, AMT, (GNMA/FNMA
Collateral),
6.875% due 11/01/2026 269
1,095 Marion County, School Board, COP, (FSA
Insured),
5.250% due 06/01/2018 1,168
500 Orange County, Housing Finance Authority,
MFHR, (Hands Inc. Project), Series A,
7.000% due 10/01/2025*** 526
5,000 Orlando, Utilities Commission, Water &
Electric Revenue,
6.000% due 10/01/2010 5,748
Principal
Amount Value
(000s) (000s)
--------- ------
$ 1,300 Osceola County, School Board, COP, Series A,
(AMBAC Insured),
5.125% due 06/01/2022 $ 1,346
900 Pasco County, Solid Waste Disposal &
Resource Recovery System, Resource
Recovery Revenue, AMT, (AMBAC Insured),
6.000% due 04/01/2011 996
--------
23,739
--------
Georgia - 5.3%
5,000 Georgia State, GO, Series B,
6.300% due 03/01/2009 5,741
Monroe County, Development Authority, PCR,
(Oglethorpe Power Corporation Project),
Series A, (MBIA-IBC Insured):
2,500 6.700% due 01/01/2009 2,886
3,410 6.750% due 01/01/2010 3,993
--------
12,620
--------
Hawaii - 1.0%
Honolulu City and County, GO, Series A:
1,270 (Unrefunded Balance),
6.000% due 01/01/2012 1,447
730 ETM, 6.000% due 01/01/2012 842
--------
2,289
--------
Idaho - 1.0%
2,000 Idaho Health Facilities Authority, Health Care
Revenue, (IHC Hospitals Inc. Project),
(Inverse Floater), ETM,
6.650% due 02/15/2021+*** 2,468
--------
Illinois - 7.6%
5,000 Chicago, O'Hare International Airport,
Airport Revenue, (Inverse Floater), AMT,
(FSA Insured),
10.260% due 01/01/2020+*** 5,747
Chicago, O'Hare International Airport,
Special Facilities Revenue, Series B:
965 (Second Lien Passenger Facility),
(AMBAC Insured),
5.500% due 01/01/2017 1,039
1,000 (United Airlines Project), AMT, (in default),
6.100% due 11/01/2035 320
2,570 Cook County, Oak Lawn School District
No. 122, Capital Appreciation, GO,
(FGIC Insured),
Zero coupon due 12/01/2016 1,398
2,000 Illinois State, GO, Series 1, (MBIA Insured),
5.750% due 12/01/2012 2,280
Metropolitan Pier & Exposition Authority,
Capital Appreciation, Dedicated State Tax
Revenue, Series A, (FGIC Insured):
(Unrefunded Balance):
85 Zero coupon due 06/15/2008 75
130 Zero coupon due 06/15/2009 109
ETM:
5,055 Zero coupon due 06/15/2009 4,253
815 Zero coupon due 06/15/2009 685
See Notes to Financial Statements.
39
portfolio of investments (continued)
TAX-EXEMPT BOND FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
Illinois - (continued)
$ 2,000 Metropolitan Pier & Exposition Authority,
Sales Tax Revenue, (McCormick Place
Expansion Project), Series A, (MBIA
Insured),
5.250% due 06/15/2042 $ 2,031
--------
17,937
--------
Indiana - 2.9%
6,000 Indiana Municipal Power Agency, Power
Supply System Revenue, Series A, ETM,
(MBIA Insured),
6.125% due 01/01/2013 6,886
--------
Kentucky - 1.4%
1,435 Kentucky State Property & Buildings
Commission, Lease Revenue, (Project
No. 74), (FSA Insured),
5.375% due 02/01/2016 1,596
1,500 Kentucky State Turnpike Authority, Economic
Development Road Revenue, (Revitalization
Project), (FSA Insured), (Pre-refunded to
01/01/2011),
5.625% due 07/01/2013 1,664
--------
3,260
--------
Louisiana - 1.0%
1,500 Louisiana Public Facilities Authority,
Customer Receipts Revenue, Series B, ETM,
Zero coupon due 12/01/2019 677
1,500 Louisiana State, GO, Series A, (FGIC
Insured), 5.500% due 11/15/2008 1,672
--------
2,349
--------
Maryland - 1.4%
2,000 Baltimore, Port Facilities, Industrial Revenue,
(Consolidated Coal Sales Project), Series B,
6.500% due 10/01/2011 2,028
1,150 Maryland State Economic Development
Corporation, Student Housing Revenue,
(University of Maryland College Park
Project), 5.625% due 06/01/2035 1,163
--------
3,191
--------
Massachusetts - 1.6%
1,000 Massachusetts State Development Finance
Agency, Revenue Bonds, (Hillcrest
Educational Centers Inc. Project),
6.375% due 07/01/2029 948
1,000 Massachusetts State Health & Educational
Facilities Authority, Health Care Revenue,
(Health Care System-Covenant Health),
6.000% due 07/01/2031 1,046
1,500 Massachusetts State, Federal Highway Grant
Anticipation Notes Revenue, Series A,
5.750% due 06/15/2015 1,701
--------
3,695
--------
Principal
Amount Value
(000s) (000s)
--------- ------
Michigan - 0.4%
$ 1,000 Michigan State Strategic Fund, Limited
Obligation Revenue, (Detroit Edison
Company Exempt Facilities Project),
Series C, AMT, (XLCA Insured),
5.450% due 12/15/2032 $ 1,021
--------
Missouri - 3.0%
2,250 Bi-State Development Agency of the Missouri-
Illinois Metropolitan District, Mass Transit
Sales Tax Revenue, (Metrolink Cross
County Extension Project), Series B,
(FSA Insured),
5.250% due 10/01/2019 2,392
1,000 Cape Girardeau County, Industrial
Development Authority, Health Care
Facilities Revenue, (Southeast Hospital
Association Project),
5.625% due 06/01/2027 1,011
600 Fenton, Tax Increment Revenue, (Gravois
Bluffs Improvement Project),
7.000% due 10/01/2021 643
1,000 Missouri State Health and Education
Facilities Authority, Education Facilities
Revenue, (University of Missouri-
Columbia Arena Project),
5.000% due 11/01/2018 1,037
St. Louis County, Pattonville School District
No. R-3, GO, (Missouri Direct Deposit
Program), (FGIC Insured):
1,000 5.750% due 03/01/2017 1,109
880 5.750% due 03/01/2018 977
--------
7,169
--------
Nebraska - 3.8%
7,000 Omaha Public Power District, Electric
Revenue, Series B, ETM,
6.150% due 02/01/2012 8,082
1,000 University of Nebraska, Lincoln Student Fees
& Facilities Revenue, Series B,
5.000% due 07/01/2023 1,011
--------
9,093
--------
Nevada - 0.4%
1,000 Reno, Sales & Room Tax Revenue, Sr. Lien,
(ReTrac-Reno Transportation Rail Access
Project), (AMBAC Insured),
5.125% due 06/01/2037 1,002
--------
New Jersey - 1.9%
1,000 New Jersey Economic Development Authority,
Economic Development Revenue,
(Kapkowski Road Landfill Project),
5.750% due 04/01/2031 945
1,340 New Jersey Educational Facilities Authority,
Government Fund Grant Revenue, (Higher
Education Capital Improvement Project),
Series A, (AMBAC Insured),
5.250% due 09/01/2020 1,414
1,000 New Jersey Transit Corporation, COP,
(Federal Transit Administration Grants
Projects), Series A, (AMBAC Insured),
5.500% due 09/15/2013 1,114
See Notes to Financial Statements.
40
portfolio of investments (continued)
TAX-EXEMPT BOND FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
New Jersey - (continued)
$ 1,000 New Jersey Transportation Trust Fund
Authority, Transportation System Revenue,
Series C, (FSA Insured),
5.500% due 06/15/2020 $ 1,082
--------
4,555
--------
New York - 4.7%
1,265 Metropolitan Transportation Authority,
Service Contract Revenue, (Transportation
Facilities Project), Series 7,
4.750% due 07/01/2019 1,320
1,500 Metropolitan Transportation Authority,
Transportation Revenue, Series A, (FGIC
Insured),
5.250% due 11/15/2031 1,537
2,000 Nassau County, Interim Finance Authority,
Sales Tax Revenue, Series A,
5.750% due 11/15/2013 2,282
1,000 New York State Dormitory Authority, College
& University Revenue, (State University
Educational Facilities Project), (MBIA
Insured),
6.000% due 05/15/2016 1,137
580 New York State Housing Finance Agency,
MFHR, (Secured Mortgage Program),
Series F, AMT,
6.625% due 08/15/2012 587
970 New York State Mortgage Agency,
Homeowner Mortgage Revenue, Series 82,
AMT, 5.650% due 04/01/2030 1,006
1,000 New York State Urban Development
Corporation, Personal Income Tax
Revenue, Series C-1, (FGIC Insured),
5.500% due 03/15/2019 1,089
New York State, GO:
1,000 Series B, ETM, (FSA Insured),
7.000% due 06/01/2014 1,106
1,000 Series H, 5.750% due 03/15/2013 1,092
--------
11,156
--------
North Carolina - 1.4%
1,000 Charlotte, COP, (Convention Facility Project),
Series A,
5.500% due 08/01/2019 1,090
2,000 North Carolina Municipal Power Agency
No. 1, Catawba Electric Revenue, Series A,
(MBIA Insured),
5.250% due 01/01/2018 2,122
--------
3,212
--------
Ohio - 2.3%
1,000 Cuyahoga County, Hospital Facilities
Revenue, (Canton Inc. Project),
7.500% due 01/01/2030 1,101
Principal
Amount Value
(000s) (000s)
--------- ------
$ 1,000 Ohio Municipal Electric Generation Agency,
Revenue Bond, (Belleville Hydroelectric
Project), (AMBAC Insured),
5.000% due 02/15/2021 $ 1,024
2,175 Ohio State Building Authority, Lease Revenue,
(Administrative Building Fund Projects),
Series A, (FSA Insured),
5.500% due 04/01/2015 2,372
1,000 Ohio State University, General Receipts
Revenue, Series A,
5.125% due 12/01/2031 1,010
--------
5,507
--------
Oklahoma - 1.3%
1,385 Central Oklahoma Transportation & Parking
Authority, Parking Systems Revenue,
(AMBAC Insured),
5.000% due 07/01/2022 1,407
375 Oklahoma Housing & Finance Authority,
SFMR, Series B, AMT, (GNMA Collateral),
7.997% due 08/01/2018 395
1,000 Tulsa County, Public Facilities Authority,
Capital Improvement Revenue,
(AMBAC Insured),
6.250% due 11/01/2022 1,151
--------
2,953
--------
Oregon - 2.3%
1,000 Oregon Health Sciences University, College
& University Revenue, Series A,
(MBIA Insured),
5.250% due 07/01/2022 1,043
1,000 Oregon State Department of Administrative
Services, COP, Series C, (MBIA Insured),
5.250% due 11/01/2018 1,058
2,000 Portland, Sewer System Revenue, Second
Lien, Series A, (FSA Insured),
5.250% due 06/01/2020 2,110
1,000 Portland, Tax Allocation Revenue,
(Downtown Waterfront Urban Renewal
& Redevelopment Project), Series A,
(AMBAC Insured),
5.750% due 06/15/2016 1,114
--------
5,325
--------
Pennsylvania - 3.5%
Philadelphia, Gas Works Revenue,
(FSA Insured):
(1998 General Ordinance):
1,000 Fourth Series,
5.250% due 08/01/2020 1,054
2,500 Second Series,
5.250% due 07/01/2029 2,538
2,500 (Inverse Floater), Series 384,
9.371% due 07/01/2011+*** 2,836
820 Philadelphia, Parking Authority, Auto
Parking Revenue, Series A,
(AMBAC Insured),
5.250% due 02/15/2029 832
See Notes to Financial Statements.
41
portfolio of investments (continued)
TAX-EXEMPT BOND FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
Pennsylvania - (continued)
$ 1,000 Philadelphia, Redevelopment Authority
Revenue, (Neighborhood Transformation
Project), Series A, (FGIC Insured),
5.500% due 04/15/2017 $ 1,087
--------
8,347
--------
Puerto Rico - 0.5%
1,000 Puerto Rico Municipal Finance Agency,
Revenue Bonds, Series A,
(FSA Insured),
5.250% due 08/01/2021 1,063
--------
South Carolina - 1.9%
1,300 Chesterfield County, School District, GO,
(FSA Insured),
5.375% due 03/01/2018 1,391
1,955 Greenville, Waterworks System Revenue,
5.250% due 02/01/2019 2,080
1,000 South Carolina Jobs-Economic Development
Authority, IDR, (Electric & Gas Company
Project), Series A, (AMBAC Insured),
5.200% due 11/01/2027 1,022
--------
4,493
--------
Tennessee - 1.0%
1,000 Johnson City, Health & Educational Facility
Board, Hospital Revenue, (Mountain
States Health Care Facilities First
Mortgage Project), Series A,
7.500% due 07/01/2033 1,126
1,205 Tennessee Housing Development Agency,
Housing Revenue, (Homeownership
Program), Series 2A, AMT,
5.700% due 07/01/2031 1,236
--------
2,362
--------
Texas - 6.7%
1,500 Austin, Water & Wastewater System
Revenue, (MBIA Insured),
5.250% due 11/15/2019 1,582
1,000 Corpus Christi, GO, (FSA Insured),
5.750% due 03/01/2018 1,104
1,500 Dallas-Fort Worth International Airport
Board, Airport & Marina Revenue, Series A,
AMT, (FGIC Insured),
5.500% due 11/01/2031 1,537
1,000 Fort Worth, GO, Series A,
5.000% due 03/01/2021 1,022
1,000 Houston, GO, (Public Improvement Project),
(FSA Insured),
5.750% due 03/01/2015 1,109
1,000 Houston, Hotel Occupancy Tax & Special
Revenue, (Convention & Entertainment
Project), Series B, (AMBAC Insured),
5.750% due 09/01/2015 1,112
2,050 Houston, Water & Sewer System Revenue,
Jr. Lien, Series C, (FGIC Insured),
5.375% due 12/01/2027 2,103
Principal
Amount Value
(000s) (000s)
--------- ------
$ 1,100 Metro Health Facilities Development
Corporation, Health Care Revenue,
(Wilson N. Jones Memorial Hospital
Project), 7.200% due 01/01/2021 $ 1,070
North Central, Health Facilities
Development Corporation Revenue:
1,000 (Baylor Health Care System Project),
Series A, 5.125% due 05/15/2029 982
1,000 (Children's Medical Center of Dallas
Project), (AMBAC Insured),
5.250% due 08/15/2032 1,016
1,000 Texas Tech University System, Financing
System Revenue, Seventh Series,
(MBIA Insured),
5.000% due 08/15/2025 1,002
2,000 University of Texas Financing System,
College & University Revenue, Series A,
5.250% due 08/15/2019 2,123
--------
15,762
--------
Virginia - 1.2%
Richmond, GO, (FSA Insured):
600 5.125% due 01/15/2008 654
1,000 5.250% due 01/15/2009 1,102
1,000 5.500% due 01/15/2010 1,119
--------
2,875
--------
Washington - 7.0%
2,500 Energy Northwest, Electric Revenue,
(Nuclear Project 3), Series A ,
(FSA Insured),
5.500% due 07/01/2017 2,704
5,000 Franklin County, Pasco School District No.1,
GO, (FSA Insured),
5.250% due 12/01/2019 5,291
4,500 King County, Kent School District No. 415,
GO, Series C,
6.300% due 12/01/2008 5,137
3,000 Washington State, GO, Series B & AT-7,
6.400% due 06/01/2017 3,566
--------
16,698
--------
West Virginia - 1.1%
2,500 Harrison County, County Community Solid
Waste Disposal Authority, IDR,
(Monongahela Power Company Project),
Series A, AMT, (MBIA-IBC Insured),
6.875% due 04/15/2022 2,510
Wisconsin - 0.3%
710 Wisconsin State Health & Educational
Facilities Authority, Health Care Revenue,
Waukesha Memorial Hospital Project),
Series A, (AMBAC Insured),
7.125% due 08/15/2007 713
--------
Total Municipal Bonds and Notes
(Cost $219,843) 234,591
--------
See Notes to Financial Statements.
42
portfolio of investments (continued)
TAX-EXEMPT BOND FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
SHORT-TERM MUNICIPAL BONDS - 0.2%
(Cost $400)
$ 400 Idaho Health Facilities Authority, Health
Care Revenue, (Saint Luke's Regional
Medical Center Project), (FSA Insured),
1.100% due 07/01/2030++ $ 400
--------
TOTAL INVESTMENTS+++ (Cost $220,243*) 99.2% 234,991
OTHER ASSETS AND LIABILITIES (Net) 0.8 2,013
----- --------
NET ASSETS 100.0% $237,004
===== ========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Security purchased on a when-issued basis.
*** Security deemed illiquid by the Portfolio Manager.
+ Floating rate note. The interest rate shown reflects the rate in effect
at April 30, 2004.
++ Variable rate securities payable upon demand with not more than five
business days' notice, and secured by bank letters of credit or guarantees
by certain corporations. The interest rate shown reflects the rate in
effect at April 30, 2004.
+++ All securities segregated as collateral for when-issued securities or
futures contracts.
Tax-Exempt Bond Fund had the following industry concentrations greater than
10% at April 30, 2004 (as a percentage of net assets) (unaudited):
General Obligation 19.5%
Power 15.1%
Transportation 13.5%
General Purpose 12.4%
Tax-Exempt Bond Fund had the following insurance concentrations greater than
10% at April 30, 2004 (as a percentage of net assets) (unaudited):
MBIA 20.6%
FSA 19.2%
AMBAC 14.2%
FGIC 11.4%
Unrealized
Number of Value Appreciation
Contracts (000s) (000s)
- --------- ------ ------------
Futures Contracts-Short Position
100 U.S. 5 Year Treasury Note,
June 2004 $10,994 $ 79
21 U.S. 10 Year Treasury Note,
June 2004 2,320 23
----
Net Unrealized Appreciation of
Futures Contracts $102
====
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
ACA -- ACA Financial Guaranty Corporation
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Federal Guaranty Insurance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GO -- General Obligation Bond
IBC -- Insured Bond Certificate
IDR -- Industrial Development Revenue
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
PCR -- Pollution Control Revenue
SFMR -- Single Family Mortgage Revenue
TCRS -- Transferable Custodial Receipts
VHA -- Veterans Housing Authority
XLCA -- XL Capital Assurance Inc.
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
43
portfolio of investments
CALIFORNIA MUNICIPAL FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - 102.0%
California - 101.6%
ABAG Financing Authority for Nonprofit
Corporations, COP:
$ 340 (Episcopal Homes Foundation),
5.000% due 07/01/2007 $ 357
(O'Connor Woods Obligation Group),
(ACA Insured):
1,000 5.400% due 11/01/2009 1,072
2,530 5.700% due 11/01/2013 2,706
1,000 ABAG Financing Authority for Nonprofit
Corporations, MFHR, (Archstone
Redwood), Series A,
5.300% due 10/01/2008 1,057
1,240 ABAG Financing Authority for Nonprofit
Corporations, Revenue Bonds, (California
School of Mechanical Arts),
5.250% due 10/01/2026 1,260
5,360 Alhambra, Improvement Board Act of 1915,
Special Tax Revenue, (Public Works
Assessment District No. 1), (MBIA
Insured),
6.125% due 09/02/2018 5,440
2,000 Anaheim, Public Financing Authority, Tax
Allocation Revenue, (Inverse Floater),
(MBIA Insured),
11.670% due 12/28/2018+ 2,583
2,210 Azusa, Community Facilities District No. 1,
Special Tax Revenue, (Mountain Cove),
Series A,
6.000% due 09/01/2026 2,247
2,000 Barstow, Redevelopment Agency, Tax
Allocation Revenue,
(Central Redevelopment Project), Series A,
(MBIA Insured),
7.000% due 09/01/2014 2,485
3,155 Burbank, Waste Disposal Revenue, Series B,
(FSA Insured),
5.250% due 05/01/2024 3,247
2,000 California Department of Veteran Affairs,
Home Purchase Revenue, Series A,
(AMBAC Insured),
5.400% due 12/01/2018 2,132
California Educational Facilities Authority,
College & University Revenue:
2,485 (Heald College),
5.450% due 02/15/2022 2,199
1,000 (Pooled College & University), Series B,
6.625% due 06/01/2020 1,085
1,000 (University of San Diego), Series A,
5.250% due 10/01/2030 1,004
1,000 California Educational Facilities Authority,
Student Loan Revenue, (California Loan
Program), Series A, AMT, (MBIA Insured),
5.100% due 03/01/2014 1,046
1,860 California Financing Authority for Resource
Efficiency, Multiple Utility Revenue, (First
Resource Efficiency Program), (AMBAC
Insured), (Pre-refunded to 07/01/2004),
6.000% due 07/01/2017 1,910
Principal
Amount Value
(000s) (000s)
--------- ------
$ 1,000 California Health Facilities Financing
Authority, Health Care Revenue, (Adventist
Health System Project), Series A,
5.000% due 03/01/2028 $ 963
California Housing Finance Agency, Home
Ownership & Improvement Revenue, AMT,
(MBIA Insured):
30 Series B,
5.200% due 08/01/2026 30
665 Series D,
6.300% due 08/01/2014 680
2,630 Series F,
6.800% due 08/01/2014 2,714
1,000 California Infrastructure & Economic
Development Bank, Health Care Revenue,
(The J. David Gladstone Institute Project),
5.500% due 10/01/2015 1,068
3,855 California Infrastructure & Economic
Development Bank, Lease Revenue,
(Asian Art Museum of San Francisco
Project), (MBIA Insured),
5.500% due 06/01/2017 4,190
California Infrastructure & Economic
Development Bank, Seismic Retrofit
Charge Revenue, First Lien, (Bay Area
Toll Bridges Seismic Retrofit Project),
Series A:
5,000 (AMBAC Insured),
5.000% due 07/01/2033 4,988
(FGIC Insured):
5,000 5.000% due 07/01/2026 5,027
2,000 5.000% due 07/01/2029 2,002
California Pollution Control Financing
Authority, PCR:
2,500 (San Diego Gas and Electric Company),
Series A, AMT, (AMBAC Insured),
5.850% due 06/01/2021 2,556
2,000 (Southern California Edison Company),
Series D,
2.000% due 02/28/2008 1,976
140 California Rural Home Mortgage Finance
Authority, SFMR, (Mortgage-Backed
Securities Program), Issue A, Series 2,
AMT, (GNMA/FHLMC Collateral),
7.950% due 12/01/2024 145
6,320 California State Department of Transportation,
COP, Series A, (MBIA Insured),
5.250% due 03/01/2016 6,725
California State Department of Water
Resources, Power Supply Revenue,
Series A:
5,000 5.750% due 05/01/2017 5,421
5,500 5.875% due 05/01/2016 6,038
2,000 (AMBAC Insured),
5.500% due 05/01/2016 2,183
7,000 (MBIA-IBC Insured),
5.125% due 05/01/2018 7,318
3,000 (XLCA Insured),
5.375% due 05/01/2017 3,228
2,000 California State Department of Water
Resources, Water Revenue, Series W,
(FSA Insured),
5.000% due 12/01/2018 2,074
See Notes to Financial Statements.
44
portfolio of investments (continued)
CALIFORNIA MUNICIPAL FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
California - (continued)
California State Public Works Board, Lease
Revenue:
$ 1,500 (California Community Colleges), Series A,
5.250% due 12/01/2014 $ 1,552
3,000 (California State University), Series C,
5.400% due 10/01/2022 3,015
(Department of Corrections - Kern County
at Delano II State Prison), Series C:
2,400 5.000% due 06/01/2024 2,293
2,500 5.000% due 06/01/2025 2,389
1,980 5.500% due 06/01/2023 2,019
2,205 (Department of Corrections - Lassen
County, Susanville State Prison), Series E,
(XCLA Insured),
5.000% due 06/01/2018 2,287
2,000 (Department of Corrections Program),
Series A, (MBIA-IBC Insured),
5.000% due 09/01/2018 2,052
4,330 (Department of Corrections-Ten
Administrative Segregation Housing Units),
Series A, (AMBAC Insured),
5.250% due 03/01/2019 4,535
(Department of Mental Health - Coalinga
State Hospital), Series A:
3,000 5.000% due 06/01/2024 2,870
2,000 5.000% due 06/01/2025 1,908
2,000 5.125% due 06/01/2029 1,921
4,200 (UC M.I.N.D. Institute), Series A,
5.000% due 04/01/2023 4,182
California State University, Fresno
Association Inc. Revenue, (Auxiliary
Organization Event Center):
1,500 6.000% due 07/01/2022 1,539
1,500 6.000% due 07/01/2031 1,506
California State, GO:
1,000 (AGC-ICC Insured),
5.750% due 10/01/2010 1,129
2,000 (CIFG-TCRS Insured),
5.000% due 10/01/2022 2,027
4,430 (FGIC-TCRS Insured),
5.500% due 06/01/2025 4,569
6,000 (MBIA-IBC Insured),
5.000% due 02/01/2032 5,922
1,280 (Veterans), Series BJ, AMT,
5.700% due 12/01/2032 1,291
(Veterans), Series BT, AMT:
1,300 4.900% due 12/01/2011 1,316
2,510 5.000% due 12/01/2012 2,532
(XLCA Insured):
5,000 5.000% due 10/01/2028 4,948
3,050 6.750% due 08/01/2012 3,643
3,000 California Statewide Communities
Development Authority, COP, (Cedars-
Sinai Medical Center), (MBIA-IBC
Insured),
6.500% due 08/01/2012 3,368
Principal
Amount Value
(000s) (000s)
--------- ------
California Statewide Communities
Development Authority, MFHR, (Equity
Residential Housing):
$ 1,000 Series B,
5.200% due 12/01/2029 $ 1,072
3,300 Series C,
5.200% due 06/15/2009 3,538
1,500 California Statewide Communities
Development Authority, Water Revenue,
(Pooled Financing Program), Series C,
(FSA Insured),
5.250% due 10/01/2024 1,550
1,000 Carson, Improvement Board Act of 1915, GO,
7.375% due 09/02/2022 1,016
1,000 Carson, Redevelopment Agency, Tax
Allocation Revenue, (Area No. 1 Project),
(MBIA Insured),
5.500% due 10/01/2016 1,114
3,195 Castaic Lake, Water Agency, COP, (1994
Refunding Project), Series A, (AMBAC
Insured),
5.000% due 08/01/2019*** 3,294
1,000 Chino Valley, Unified School District, COP,
Series A, (FSA Insured),
5.250% due 09/01/2014 1,079
3,000 Chula Vista, COP, (MBIA Insured),
5.000% due 08/01/2027 2,998
Chula Vista, IDR, (San Diego Gas and
Electric Company), Series A, AMT:
3,000 4.900% due 03/01/2023 2,826
4,675 (AMBAC Insured),
6.400% due 12/01/2027 4,818
1,825 Chula Vista, Public Financing Authority,
Special Tax Revenue, (Assessment
Districts Refinancing), Sr. Lien, Series A,
(FSA Insured),
4.700% due 09/02/2014 1,899
2,715 Chula Vista, Redevelopment Agency, Tax
Allocation Revenue,
8.625% due 09/01/2024 3,110
2,000 Coachella, Redevelopment Agency, Tax
Allocation Revenue, (Area No. 3 Project),
5.875% due 12/01/2028 2,006
2,160 Contra Costa County, Public Financing
Authority, Lease Revenue, (Capital
Projects), Series B, (MBIA Insured),
5.250% due 06/01/2027 2,187
Contra Costa, Water District Revenue,
Series K, (FSA Insured):
1,445 5.000% due 10/01/2017 1,504
1,520 5.000% due 10/01/2018 1,575
1,285 Corona, COP, (Clearwater Cogeneration
Project), (MBIA Insured),
5.000% due 09/01/2017 1,335
1,500 Culver City, Redevelopment Finance
Authority, Tax Allocation Revenue,
Series B,
6.250% due 11/01/2025 1,518
1,670 Davis, Public Facilities Finance Authority
Local Agency, Special Tax Revenue,
(Mace Ranch Area), Series A,
6.600% due 09/01/2025 1,735
See Notes to Financial Statements.
45
portfolio of investments (continued)
CALIFORNIA MUNICIPAL FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
California - (continued)
$ 1,985 El Cajon, COP, (Helix View Nursing Home
Project), AMT, (FHA Insured),
7.750% due 02/01/2029 $ 1,994
2,215 Fairfield, Housing Authority, Mortgage
Revenue, (Creekside Estates Mobile
Homes), 5.625% due 09/01/2023 2,138
1,000 Fontana, Redevelopment Agency, Tax
Allocation Revenue, (Southwest Industrial
Park Project), (MBIA Insured),
5.200% due 09/01/2030 1,012
Foothill Eastern Transportation Corridor
Agency, Toll Road Revenue:
9,000 Zero coupon due 01/15/2026 6,610
20,000 Zero coupon due 01/15/2030 4,220
10,000 Zero coupon due 01/15/2032 1,864
10,000 Zero coupon due 01/15/2033 1,740
10,000 Zero coupon due 01/15/2034 1,637
10,000 Zero coupon due 01/15/2036 1,440
10,000 Zero coupon due 01/15/2037 1,350
9,000 Zero coupon due 01/15/2038 1,125
2,000 Fresno, Joint Powers Financing Authority,
Lease Revenue, Series A, (FSA Insured),
5.750% due 06/01/2026 2,146
Golden West Schools Financing Authority,
Capital Appreciation, Revenue Bonds,
(School District Refinancing Program),
Series A, (MBIA Insured):
1,215 Zero coupon due 08/01/2016 651
1,580 Zero coupon due 02/01/2017 810
Hi Desert, Members Health Care District,
Health Care Revenue:
2,250 5.500% due 10/01/2015 2,136
1,175 5.500% due 10/01/2019 1,044
2,000 Huntington Park, Public Financing Authority,
Lease Revenue, (Wastewater System
Project),
6.200% due 10/01/2025 2,051
5,000 Imperial Irrigation District, COP, (Water
System Projects), (AMBAC Insured),
5.500% due 07/01/2029 5,256
1,250 Imperial, Water Facilities Revenue, COP,
(FGIC Insured),
5.000% due 10/15/2020 1,276
1,000 Irvine, Meadows Mobile Home Park,
Mortgage Revenue, Series A,
5.700% due 03/01/2018 950
Irvine, Public Facilities & Infrastructure
Authority, Assessment Revenue,
(AMBAC Insured):
Series B:
1,455 5.000% due 09/02/2020 1,500
3,630 5.000% due 09/02/2021 3,724
2,000 Series C,
5.000% due 09/02/2023 1,986
1,175 Kings County, Waste Management Authority,
Solid Waste Revenue, AMT,
7.200% due 10/01/2014 1,218
Principal
Amount Value
(000s) (000s)
--------- ------
$ 1,500 La Verne, Public Financing Authority,
Revenue Bonds, (Capital Improvement
Projects),
7.250% due 09/01/2026 $ 1,573
1,000 Laguna Hills, COP, (Community Center
Project), (MBIA Insured),
5.000% due 12/01/2017 1,040
1,975 Lake Elsinore, Public Financing Authority,
Local Agency Revenue, Series G,
5.800% due 09/02/2015 2,052
2,000 Long Beach, Community Facilities District
No. 5, Special Tax Revenue, (Towne
Center), 6.875% due 10/01/2025 2,080
1,315 Long Beach, Redevelopment Agency, Tax
Allocation Revenue, (North Long Beach
Redevelopment Projects), Series A,
(AMBAC Insured),
5.000% due 08/01/2022 1,336
1,425 Los Angeles, Community Redevelopment
Agency, Financing Authority Revenue,
(Grand Central Square Multi-family
Housing Project), Series A, AMT,
5.850% due 12/01/2026 1,426
1,490 Los Angeles, Community Redevelopment
Agency, Housing Revenue, Series C,
(AMBAC Insured),
6.750% due 07/01/2014 1,524
1,000 Los Angeles, Community Redevelopment
Agency, Parking Systems Revenue,
(Cinerama Dome Public Parking Project),
(ACA Insured),
5.500% due 07/01/2016 1,022
2,500 Los Angeles, Community Redevelopment
Agency, Tax Allocation Revenue, (North
Hollywood Project), Series E, (MBIA
Insured),
5.400% due 07/01/2024 2,612
40 Los Angeles, Home Mortgage Revenue,
(Mortgage-Backed Securities Project),
(GNMA Collateral),
8.100% due 05/01/2017 40
Los Angeles, MFHR, AMT, (GNMA
Collateral):
3,000 (Park Parthenia Project),
7.400% due 01/20/2022** 3,011
1,000 (Ridgecroft Apartments Project), Series E,
6.250% due 09/20/2039 1,034
1,445 Los Angeles, Special Assessment Revenue,
(Landscaping & Lighting District No. 96-1
Project), (AMBAC Insured),
5.000% due 03/01/2022 1,467
6,660 Los Angeles, Unified School District, GO,
(Election of 1997), Series E, (MBIA
Insured),
5.500% due 07/01/2018 7,230
Los Angeles, Water & Power Revenue,
(Power Systems), Series A-A-3:
1,705 5.250% due 07/01/2018 1,778
3,000 5.250% due 07/01/2019 3,109
3,000 5.375% due 07/01/2020 3,105
See Notes to Financial Statements.
46
portfolio of investments (continued)
CALIFORNIA MUNICIPAL FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
California - (continued)
$ 1,405 Los Gatos-Saratoga, Joint Unified High
School District, GO, (Election of 1998),
Series B,
5.750% due 12/01/2021 $ 1,536
2,000 Mammoth Lakes, Community Facilities
District No. 001, Special Tax Revenue,
(North Village Area Project),
5.650% due 10/01/2023 1,917
1,490 Mountain View, Shoreline Regional Park
Community, Tax Allocation Revenue,
Series A, (MBIA Insured),
5.250% due 08/01/2015 1,595
2,785 Needles, Public Utilities Authority, Utilities
Revenue, (Utilities System Acquisition
Project), Series A,
6.500% due 02/01/2022 2,818
3,500 Novato, Community Facilities District No. 1,
Special Tax Revenue,
7.200% due 08/01/2015 3,605
Oakland, Alameda County Unified School
District, COP, (Energy Retrofit Project):
1,825 (Pre-refunded to 11/15/2005),
7.000% due 05/15/2011** 2,010
3,445 (Pre-refunded to 11/15/2006),
6.750% due 11/15/2014** 3,916
1,500 Oakland, Revenue Bonds, (YMCA East Bay
Project),
7.100% due 06/01/2010 1,562
1,565 Oakland, Unified School District, GO,
(Alameda County School Improvements),
(FSA Insured),
5.000% due 08/01/2017 1,607
1,500 Oceanside, COP, Series A,
(AMBAC Insured),
5.250% due 04/01/2018 1,588
4,000 Orange County, COP, Series A,
(MBIA Insured),
5.800% due 07/01/2016 4,360
1,495 Oxnard, Financing Authority, Wastewater
Revenue, (FGIC Insured),
5.000% due 06/01/2020 1,544
1,280 Palm Desert, Financing Authority, Tax
Allocation Revenue, (Project Area No. 2),
Series A, (MBIA Insured),
5.000% due 08/01/2022 1,304
1,995 Pomona, COP, (Mission Promenade Project),
Series AE, (AMBAC Insured),
5.375% due 10/01/2032 2,028
5,000 Pomona, Public Financing Authority, Tax
Allocation Revenue, (Merged
Redevelopment Project), Series AD,
(MBIA Insured),
5.000% due 02/01/2021 5,087
1,000 Pomona, Unified School District, GO,
(MBIA Insured),
6.150% due 08/01/2030 1,148
5,000 Port of Oakland, Airport & Marina Revenue,
Series K, AMT, (FGIC Insured),
5.750% due 11/01/2029 5,190
Principal
Amount Value
(000s) (000s)
--------- ------
Port of Oakland, Special Facilities Revenue,
(Mitsui O.S.K. Lines Ltd. Project),
Series A, AMT:
$ 3,030 6.750% due 01/01/2012 $ 3,041
1,465 6.800% due 01/01/2019 1,472
1,000 Poway, Housing Revenue, (Poinsettia Mobile
Home Park Project),
5.000% due 05/01/2023 978
1,000 Poway, Redevelopment Agency, Tax
Allocation Revenue, (Paguay
Redevelopment Project), (AMBAC
Insured), 5.375% due 06/15/2019 1,066
900 Poway, Unified School District, Special Tax
Revenue, (Community Facilities District
No. 1), (MBIA Insured),
5.000% due 10/01/2026 902
2,750 Redding, Electrical Systems, COP, (Inverse
Floater), (MBIA Insured),
11.438% due 07/01/2022+ 3,695
1,000 Redondo Beach, Public Financing Authority,
Revenue Bonds, (South Bay Center
Redevelopment Project),
7.125% due 07/01/2026 1,053
Riverside County, Public Financing Authority,
COP:
1,500 5.750% due 05/15/2019 1,538
2,100 5.800% due 05/15/2029 2,105
Rocklin, Unified School District, Capital
Appreciation, GO, (FGIC Insured):
1,030 Zero coupon due 08/01/2014 620
1,210 Zero coupon due 08/01/2016 645
1,255 Zero coupon due 08/01/2017 632
1,360 Zero coupon due 08/01/2019 608
1,415 Zero coupon due 08/01/2020 597
1,225 Zero coupon due 08/01/2023 427
Sacramento County, Airport System Revenue,
Series A, (FSA Insured):
2,425 5.250% due 07/01/2019 2,564
2,550 5.250% due 07/01/2020 2,666
2,000 Sacramento County, Sanitation District
Financing Authority, Sewer Revenue, ETM,
5.000% due 12/01/2016 2,047
1,500 Sacramento, City Financing Authority, Lease
Revenue, (City Hall & Redevelopment
Projects), Series A, (FSA Insured),
5.000% due 12/01/2028 1,495
Salinas Valley, Solid Waste Authority,
Resource Recovery Revenue, AMT,
(AMBAC Insured):
2,475 5.250% due 08/01/2027 2,504
2,000 5.250% due 08/01/2031 2,018
990 Salinas, Improvement Board Act of 1915,
Special Tax Revenue, (Assessment
District No. 90-1), Series C-185,
5.400% due 09/02/2012 1,022
San Bernardino, Redevelopment Agency, Tax
Allocation Revenue, (San Sevaine
Redevelopment Project), Series A:
1,000 6.900% due 09/01/2018 1,062
2,000 7.100% due 09/01/2029 2,096
See Notes to Financial Statements.
47
portfolio of investments (continued)
CALIFORNIA MUNICIPAL FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
California - (continued)
$ 1,885 San Buenaventura, COP, Series B, (AMBAC
Insured), 5.500% due 01/01/2017 $ 2,043
425 San Diego County, COP,
5.700% due 02/01/2028 344
San Diego, Redevelopment Agency, Auto
Parking Revenue:
1,000 (Centre City Redevelopment Project),
Series A,
6.400% due 09/01/2019 1,058
1,105 (Southcrest Redevelopment Project),
6.500% due 10/01/2025 1,176
4,000 San Diego, Water Authority Revenue, COP,
Series B, (Inverse Floater), (MBIA
Insured),
11.290% due 04/08/2021+ 4,840
1,000 San Dimas, Housing Authority Revenue,
(Charter Oak Mobile Home Project),
Series A,
5.700% due 07/01/2028 961
1,455 San Elijo, Joint Powers Authority, Loan
Agreement Revenue, (San Elijo
Wastewater Treatment Facilities), (FSA
Insured),
5.000% due 03/01/2020 1,502
San Francisco City and County, International
Airports Commission, Airport Revenue,
Second Series, AMT:
Issue 27A, (MBIA Insured):
4,000 5.250% due 05/01/2026 4,029
3,000 5.250% due 05/01/2031 3,013
4,070 Issue 28A, (MBIA Insured),
5.250% due 05/01/2020 4,176
San Francisco City and County,
Redevelopment Agency, Lease Revenue,
(George R. Moscone Convention Center
Project):
2,000 (FSA Insured),
5.000% due 07/01/2017 2,086
(XLCA Insured):
750 Zero coupon due 07/01/2011 562
3,000 Zero coupon due 07/01/2013 1,999
San Francisco City and County,
Redevelopment Financing Authority, Tax
Allocation Revenue, (San Francisco
Redevelopment Projects), Series A,
(FSA Insured):
3,150 5.000% due 08/01/2017 3,264
3,320 5.000% due 08/01/2018 3,429
2,000 San Francisco, State Building Authority,
Lease Revenue, (San Francisco Civic
Center Complex), Series A, (AMBAC
Insured),
5.250% due 12/01/2016 2,138
4,815 San Jose, Airport Revenue, Series A, (FSA
Insured),
5.375% due 03/01/2017 5,175
9,310 San Jose, Financing Authority, Lease
Revenue, (Convention Center Project),
Series F, (MBIA Insured),
5.000% due 09/01/2018 9,621
Principal
Amount Value
(000s) (000s)
--------- ------
$ 1,000 San Jose, MFHR, (Sixth & Martha Family
Apartments), AMT, (FNMA Collateral),
5.875% due 03/01/2033 $ 1,033
1,795 San Juan, Basin Authority, Lease Revenue,
(Ground Water Recovery Project),
(AMBAC Insured),
5.000% due 12/01/2022 1,824
2,000 San Marcos, Public Facilities Authority,
Revenue Bonds,
5.800% due 09/01/2018 2,075
San Mateo, Union High School District,
Capital Appreciation, GO, Series C,
(FGIC Insured):
5,250 Zero coupon due 09/01/2027 1,445
5,500 Zero coupon due 09/01/2028 1,426
10,790 Santa Magarita-Dana Point Authority, Water
Revenue, (Improvement Districts 3, 3A,
4 & 4A), Series A, (AMBAC Insured),
5.000% due 08/01/2018*** 11,233
1,350 Santa Monica-Malibu, Unified School
District, GO,
5.750% due 08/01/2025 1,455
4,615 Santa Rosa, Mortgage Revenue, (Channate
Lodge), (FHA Insured),
6.700% due 12/01/2024 4,712
2,055 Simi Valley, Community Development
Agency, Commonwealth Mortgage
Revenue, (Sycamore Plaza II),
6.000% due 09/01/2012** 2,158
2,090 South Gate, Public Financing Authority,
Tax Allocation Revenue, (South Gate
Redevelopment Project No. 1),
(AMBAC Insured),
5.250% due 09/01/2022 2,180
1,500 South Gate, Public Financing Authority,
Tax Allocation Revenue, (South Gate
Redevelopment Project No. 1), (XLCA
Insured),
5.000% due 09/01/2016 1,571
1,305 Stockton, Community Facilities District No. 1,
Special Tax Revenue, (Mello Roos-Weston
Ranch), Series A,
6.000% due 09/01/2018 1,359
1,780 Stockton-East, Water District, COP, (1975 &
1990 Projects), Series A, (FGIC Insured),
5.250% due 04/01/2022 1,846
3,270 Temecula, Redevelopment Agency, Tax
Allocation Revenue, (Redevelopment
Project No.1), (MBIA Insured),
5.250% due 08/01/2036 3,298
1,000 Torrance, Hospital Revenue, (Torrance
Memorial Medical Center), Series A,
6.000% due 06/01/2022 1,060
University of California, College &
University Revenue, (Multi-Purpose
Projects), (FGIC Insured):
1,720 Series F,
5.000% due 09/01/2016 1,796
Series M:
2,260 5.125% due 09/01/2017 2,375
4,635 5.125% due 09/01/2018 4,858
1,000 University of California, College &
University Revenue, Series A, (AMBAC
Insured),
5.000% due 05/15/2026 1,005
See Notes to Financial Statements.
48
portfolio of investments (continued)
CALIFORNIA MUNICIPAL FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
California - (continued)
$ 2,035 Vallejo City, Unified School District, GO,
Series A, (MBIA Insured),
5.900% due 02/01/2021 $ 2,342
2,025 Vallejo, Public Financing Authority, Revenue
Bonds, (Fairgrounds Drive Assessment
District),
5.700% due 09/02/2011 2,037
Ventura County, COP, (FSA Insured):
3,040 (Public Financing Authority I), Series A,
5.250% due 08/15/2016 3,242
2,305 (Public Financing Authority II),
5.250% due 08/15/2018 2,450
Walnut, Public Financing Authority, Tax
Allocation Revenue, (Walnut Improvement
Project), (AMBAC Insured):
1,660 5.375% due 09/01/2018 1,776
2,305 5.375% due 09/01/2022 2,427
1,350 West Contra Costa, Unified School District,
GO, Series A, (MBIA Insured),
5.350% due 02/01/2017 1,491
--------
477,018
--------
Virgin Islands - 0.4%
Virgin Islands, Public Finance Authority,
Revenue Bonds, (Gross Receipts of Taxes
on Loan Notes), Series A:
900 5.625% due 10/01/2010 961
1,000 6.375% due 10/01/2019 1,114
--------
2,075
--------
Total Municipal Bonds and Notes
(Cost $465,957) 479,093
--------
SHORT-TERM MUNICIPAL BONDS - 0.6%
1,400 California Statewide Communities
Development Authority, COP, (John
Muir/Mt. Diablo Health Center),
(AMBAC Insured),
1.030% due 08/15/2027++ 1,400
1,300 Rancho Mirage, Joint Powers Financing
Authority, Health Care Revenue,
(Eisenhower Medical Center Project),
Series A,
1.030% due 01/01/2026++ 1,300
--------
Total Short-Term Municipal Bonds
(Cost $2,700) 2,700
--------
TOTAL INVESTMENTS+++ (Cost $468,657*) 102.6% 481,793
OTHER ASSETS AND LIABILITIES (Net) (2.6) (12,182)
----- --------
NET ASSETS 100.0% $469,611
===== ========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Security deemed illiquid by the Portfolio Manager.
*** Security purchased on a when-issued basis.
+ Variable rate security. The interest rate shown reflects the rate in
effect at April 30, 2004.
++ Variable rate securities payable upon demand with not more than five
business days' notice, and secured by bank letters of credit or guarantees
by certain corporations. The interest rate shown reflects the rate in
effect at April 30, 2004.
+++ All securities segregated as collateral for when-issued securities or
futures contracts.
California Municipal Fund had the following industry concentrations greater
than 10% at April 30, 2004 (as a percentage of net assets) (unaudited):
General Purpose 39.3%
Transportation 12.7%
General Obligation 11.2%
California Municipal Fund had the following insurance concentrations greater
than 10% at April 30, 2004 (as a percentage of net assets) (unaudited):
MBIA 24.8%
AMBAC 16.7%
Unrealized
Number of Value Appreciation
Contracts (000s) (000s)
- --------- ------ ------------
Futures Contracts-Short Position
153 U.S. 5 Year Treasury Note,
June 2004 $16,820 $523
33 U.S. 10 Year Treasury Note,
June 2004 3,647 152
----
Net Unrealized Appreciation of
Futures Contracts $675
====
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
ACA -- ACA Financial Guaranty Corporation
AGC -- ACE Guaranty Corporation
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
CIFG -- CDC IXIS Financial Guaranty North America, Inc.
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Federal Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GO -- General Obligation Bond
IBC -- Insured Bond Certificate
ICC -- Insured Custody Certificates
IDR -- Industrial Development Revenue
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
PCR -- Pollution Control Revenue
SFMR -- Single Family Mortgage Revenue
TCRS -- Transferable Custodial Receipts
XLCA -- XL Capital Assurance Inc.
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
49
portfolio of investments
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - 90.3%
California - 88.3%
$ 1,000 ABAG Financing Authority for Nonprofit
Corporations, COP, (Episcopal Homes
Foundation),
6.250% due 08/15/2030 $ 1,115
1,000 Alameda County, COP, (MBIA Insured),
(Santa Rita Jail Project),
5.375% due 06/01/2009 1,090
1,000 Alameda County, Public Financing Authority,
Lease Revenue,
5.000% due 09/02/2008 1,026
2,000 Anaheim, Public Financing Authority, Lease
Revenue, (Convention Center Project),
Series A, (AMBAC Insured),
5.250% due 08/01/2013 2,178
Anaheim, Public Financing Authority, Power
& Light Revenue, (Electric System
Generation Project), Series B, (FSA Insured):
2,000 5.000% due 10/01/2015 2,118
2,000 5.250% due 10/01/2014 2,168
510 5.250% due 10/01/2017 543
1,130 Baldwin Park Public Financing Authority,
Sales Tax & Tax Allocation Revenue,
(Puente Merced Redevelopment Project),
4.625% due 08/01/2016 1,118
1,000 California Educational Facilities Authority,
Student Loan Revenue, (California Loan
Program), Series A, AMT, (MBIA Insured),
5.100% due 03/01/2014 1,046
1,000 California Health Facilities Financing
Authority, Health Care Revenue, (Insured
De Las Companas Project), Series A,
(AMBAC Insured),
5.875% due 07/01/2009 1,064
California Housing Finance Agency,
Mortgage Revenue:
445 Series E, (MBIA Insured),
6.050% due 08/01/2006 465
Series N, AMT, (AMBAC Insured):
1,000 5.000% due 08/01/2008 1,071
1,000 5.100% due 02/01/2009 1,070
California State Department of Water
Resources, Power Supply Revenue,
Series A:
2,000 (AMBAC Insured),
5.500% due 05/01/2016 2,183
1,675 (MBIA-IBC Insured),
5.250% due 05/01/2015 1,799
4,000 (XLCA Insured),
5.375% due 05/01/2017 4,304
3,000 California State Department of Water
Resources, Water System Revenue,
(Central Valley Project), Series Y, (FGIC
Insured),
5.250% due 12/01/2014 3,272
California State Public Works Board, Lease
Revenue:
1,000 (California Community Colleges), Series A,
(AMBAC Insured),
5.250% due 12/01/2012 1,065
Principal
Amount Value
(000s) (000s)
--------- ------
$ 2,000 (California State University), Series A,
(AMBAC Insured),
5.375% due 10/01/2017 $ 2,151
(Department of Corrections Program):
2,000 Series A, (AMBAC Insured),
5.250% due 06/01/2012 2,186
750 Series B, (CIFG-TCRS Insured),
5.250% due 01/01/2013 813
2,000 (Department of Corrections), (California
State Prison - Kern County at Delano II)
Series C,
5.000% due 06/01/2008 2,133
1,000 (Department of Corrections-Ten
Administrative Segregation Housing Units),
Series A, (AMBAC Insured),
5.250% due 03/01/2016 1,060
2,750 (Department of General Services), (Capitol
East End Complex-Blocks 171-174 & 225),
Series A, (AMBAC Insured),
5.250% due 12/01/2014 2,959
1,000 California State University, Fresno Association
Inc. Revenue, (Auxiliary Organization
Event Center),
5.000% due 07/01/2012 1,030
California State, GO:
2,000 (FGIC-TCRS Insured),
7.000% due 10/01/2010 2,409
1,000 (FSA Insured),
5.500% due 03/01/2012 1,095
(MBIA-IBC Insured):
2,335 5.250% due 02/01/2011 2,558
2,000 5.750% due 10/01/2010 2,271
2,000 6.250% due 09/01/2012 2,331
1,985 (XLCA Insured),
5.500% due 03/01/2011 2,201
1,600 California Statewide Communities
Development Authority, COP, (Children's
Hospital of Los Angeles Project), (MBIA
Insured), 6.000% due 06/01/2007 1,774
1,845 California Statewide Communities
Development Authority, Water Revenue,
(Pooled Financing Program), Series C,
(FSA Insured),
5.250% due 10/01/2015 1,991
1,240 Chino Valley, Unified School District, COP,
Series A, (FSA Insured),
5.250% due 09/01/2013 1,343
1,195 Chula Vista, Public Financing Authority,
Special Tax Revenue, (Assessment Districts
Refinancing), Sr. Lien, Series A, (FSA
Insured), 4.500% due 09/02/2013 1,241
2,175 Corona, COP, (Clearwater Cogeneration and
Recycled Water Projects), (MBIA Insured),
5.000% due 09/01/2016 2,275
Emeryville, Public Financing Authority,
Revenue Bonds, (Emeryville
Redevelopment Project), Series A, (MBIA
Insured):
1,265 5.250% due 09/01/2015 1,373
1,400 5.250% due 09/01/2017 1,505
See Notes to Financial Statements.
50
portfolio of investments (continued)
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
California - (continued)
$ 1,795 Escondido, Unified School District, GO,
Series A, (FSA Insured),
5.250% due 08/01/2016 $ 1,918
800 Fresno, Joint Powers Financing Authority,
Lease Revenue, (Fresno City Hall),
(AMBAC Insured),
5.250% due 08/01/2017 850
685 Golden West Schools Financing Authority,
Revenue Bonds, Series A, (MBIA Insured),
5.650% due 02/01/2012 771
1,075 Hartnell, Community College District, GO,
(Election of 2002), Series A, (MBIA
Insured), 5.000% due 08/01/2016 1,138
1,615 Inglewood, Unified School District, GO,
(Election of 1998), Series C, (FSA Insured),
5.250% due 10/01/2017 1,737
1,195 Kings Canyon, Joint Unified School District,
GO, (FGIC Insured),
5.375% due 08/01/2015 1,295
1,080 Long Beach, Bond Financing Authority, Lease
Revenue, (Public Safety Facilities Projects),
(AMBAC Insured),
5.250% due 11/01/2013 1,178
1,000 Long Beach, Bond Financing Authority, Tax
Allocation Revenue, (North Long Beach
Redevelopment Projects), Series A,
(AMBAC Insured),
5.375% due 08/01/2018 1,069
4,130 Los Angeles, Convention & Exhibition Center
Authority, Lease Revenue, Series A,
(AMBAC Insured),
2.000% due 08/15/2006 4,147
1,300 Los Angeles, Department of Water & Power,
Power System Revenue, Series A-2, (MBIA
Insured), 5.000% due 07/01/2017 1,364
2,500 Los Angeles, Harbor Department Revenue,
Series B, AMT,
5.500% due 08/01/2008 2,666
1,045 Los Angeles, Municipal Improvement
Corporation, Lease Revenue, (City of Los
Angeles Central Library Project), Series AT,
(MBIA Insured),
5.500% due 06/01/2017 1,137
1,500 Los Angeles, State Building Authority, Lease
Revenue, (State of California Department of
General Services Lease Project), Series A,
(MBIA-IBC Insured),
5.625% due 05/01/2011 1,668
Los Angeles, Unified School District, COP,
Series B:
(Capital Project I), (AMBAC Insured):
665 5.000% due 08/01/2016 697
1,010 5.000% due 08/01/2017 1,052
Los Angeles, Unified School District, GO,
Series A, (MBIA Insured):
2,000 5.375% due 07/01/2016 2,180
2,000 5.375% due 07/01/2017 2,175
Principal
Amount Value
(000s) (000s)
--------- ------
$ 2,105 M-S-R Public Power Agency, San Juan
Project Revenue, Series I, (MBIA Insured),
5.000% due 07/01/2015 $ 2,206
102 Modesto, Mortgage Revenue, (Stonebridge
Project), Series A, (GNMA Collateral),
5.875% due 12/01/2004 102
1,015 Nevada Irrigation District, COP, (FGIC
Insured),
5.000% due 01/01/2013 1,087
1,000 North Orange County, Community College
District, GO, Series A, (MBIA Insured),
5.250% due 08/01/2014 1,088
55 Oakland, Improvement Board Act of 1915,
Special Tax Revenue, (Medical Hill Parking
Assessment District No. 3), (MBIA Insured),
6.000% due 09/02/2004 56
1,575 Oceanside, COP, Series A, (AMBAC Insured),
5.250% due 04/01/2016 1,682
Ontario, Redevelopment Financing Authority,
Lease Revenue:
1,055 (Capital Projects), (AMBAC Insured),
5.500% due 08/01/2016 1,151
1,060 (Project No.1, Center City & Cimarron
Projects), (MBIA Insured),
5.250% due 08/01/2016 1,133
1,000 Orange County, Public Financing Authority,
Lease Revenue, (Juvenile Justice Center
Facility Project), (AMBAC Insured),
5.375% due 06/01/2016 1,081
795 Palm Desert, Financing Authority, Tax
Allocation Revenue, (Project Area No. 2),
Series A, (MBIA Insured),
5.000% due 08/01/2012 859
1,000 Port of Oakland, Airport & Marina Revenue,
Series N, AMT, (MBIA Insured),
5.000% due 11/01/2011 1,066
560 Redondo Beach, Public Financing Authority,
Revenue Bonds, (South Bay Center
Redevelopment Project),
6.750% due 07/01/2006 588
2,090 Richmond, Joint Powers Financing
Authority, Tax Allocation Revenue,
Series A, (MBIA Insured),
5.500% due 09/01/2017 2,252
1,100 Riverside, Special Tax Revenue, (Community
Facilities District No. 90-1-A), (MBIA
Insured), 5.500% due 09/01/2013 1,211
1,000 San Bernardino County, COP, (West Valley
Detention Center Refinancing Project),
Series B, (MBIA Insured),
5.000% due 11/01/2009 1,098
1,840 San Diego County, COP, (Motorola),
(AMBAC Insured),
5.000% due 02/01/2011 1,992
See Notes to Financial Statements.
51
portfolio of investments (continued)
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
--------- ------
MUNICIPAL BONDS AND NOTES - (continued)
California - (continued)
San Francisco City and County, International
Airports Commission, Airport Revenue,
Second Series, AMT:
$ 2,485 Issue 18A, (MBIA Insured),
6.000% due 05/01/2006 $ 2,671
Issue 22, (AMBAC Insured):
1,705 6.000% due 05/01/2006 1,833
1,000 6.000% due 05/01/2008 1,108
2,590 Issue 28A, (MBIA Insured),
5.000% due 05/01/2012 2,697
2,000 Issue 30, (XLCA Insured),
5.250% due 05/01/2015 2,161
1,000 San Francisco City and County, Public
Utilities Commission, Water Revenue,
Series A, (FSA Insured),
5.000% due 11/01/2016 1,046
2,325 San Francisco City and County,
Redevelopment Agency, Tax Allocation
Revenue, (San Francisco Redevelopment
Projects), Series B, (FGIC Insured),
5.250% due 08/01/2017 2,480
1,555 San Joaquin County, COP, (Solid Waste
System Facilities Project), (MBIA Insured),
5.000% due 04/01/2016 1,628
2,000 San Jose, Airport Revenue, Series A, (FSA
Insured), 5.375% due 03/01/2017 2,150
1,200 San Jose, Financing Authority, Lease Revenue,
(Convention Center Project), Series F,
(MBIA Insured),
5.000% due 09/01/2016 1,252
300 San Mateo County, Joint Powers Financing
Authority, Lease Revenue, (Capital
Products), Series A, (MBIA Insured),
2.500% due 07/01/2007 303
1,050 Santa Ana, COP, (Santa Ana Recycling Project),
Series A, AMT, (AMBAC Insured),
5.400% due 05/01/2007 1,105
Santa Maria, Redevelopment Agency, Lease
Revenue, (Town Center & Westside Parking
Facilities Project), (AMBAC Insured):
1,325 5.000% due 06/01/2013 1,425
1,085 5.250% due 06/01/2015 1,168
1,160 Shasta, Joint Powers Financing Authority,
Lease Revenue, (County Administration
Building Project), Series A, (MBIA
Insured), 5.250% due 04/01/2017 1,235
1,000 South Gate, Public Financing Authority, Tax
Allocation Revenue, (South Gate
Redevelopment Project No. 1), (XLCA
Insured), 5.000% due 09/01/2016 1,047
1,300 South Orange County, Public Financing
Authority, Special Tax Revenue, (Foothill
Area-Mello Roos), Series C, (FGIC Insured),
6.500% due 08/15/2010 1,530
Principal
Amount Value
(000s) (000s)
--------- ------
$ 995 Southern California Home Financing
Authority, MFHR, (The Fountains Project),
Series A, AMT, (FNMA Collateral),
5.400% due 01/01/2027 $ 1,030
945 Stanton, MFHR, (Continental Gardens LP
Project), AMT, (FNMA Collateral),
5.625% due 08/01/2029 1,018
1,305 Stockton, Community Facilities District No. 1,
Supplemental Tax Revenue, (Mello Roos-
Weston Ranch), Series A,
5.500% due 09/01/2009 1,386
Sunnyvale, Solid Waste Revenue,
(AMBAC Insured):
1,000 5.250% due 10/01/2012 1,060
1,000 5.500% due 10/01/2014 1,071
1,000 5.500% due 10/01/2016 1,065
1,000 Tracy, Area Public Facilities Financing Agency,
Special Tax Revenue, (Community
Facilities District No. 87-1-H), (MBIA Insured),
5.875% due 10/01/2013 1,101
2,190 Ventura County, Public Financing Authority,
COP, Series II, (FSA Insured),
5.250% due 08/15/2017 2,337
--------
147,995
--------
Guam - 0.7%
1,000 Guam Government, GO, Series A, (FSA
Insured), 5.500% due 12/01/2011 1,127
--------
Puerto Rico - 1.3%
2,000 Puerto Rico Commonwealth, GO, Series E,
(MBIA Insured),
5.000% due 07/01/2028 2,171
--------
Total Municipal Bonds and Notes
(Cost $149,672) 151,293
--------
SHORT-TERM MUNICIPAL BONDS - 7.8%
5,000 California Housing Finance Agency, Home
Mortgage Revenue, Series U, AMT, (FSA
Insured),
1.110% due 02/01/2032+ 5,000
5,000 California Statewide Communities
Development Authority, COP, (John
Muir/Mt. Diablo Health Center), (AMBAC
Insured),
1.030% due 08/15/2027+ 5,000
1,900 M-S-R Public Power Agency, San Juan
Project Revenue, Sub. Lien, Series F,
(MBIA Insured),
1.070% due 07/01/2022+ 1,900
1,120 Orange County, COP, (Sanitation Districts
Nos. 1-3, 5-7 & 11), (AMBAC Insured),
1.090% due 08/01/2016+ 1,120
--------
Total Short-Term Municipal Bonds
(Cost $13,020) 13,020
--------
TOTAL INVESTMENTS++ (Cost $162,692*) 98.1% 164,313
OTHER ASSETS AND LIABILITIES (Net) 1.9 3,199
----- --------
NET ASSETS 100.0% $167,512
===== ========
See Notes to Financial Statements.
52
portfolio of investments (continued)
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
April 30, 2004 (unaudited)
<FN>
- --------
* Aggregate cost for federal tax purposes.
+ Variable rate securities payable upon demand with not more than five
business days' notice, and secured by bank letters of credit or
guarantees by certain corporations. The interest rate shown reflects the
rate in effect at April 30, 2004.
++ All securities segregated as collateral for futures contracts.
California Insured Intermediate Municipal Fund had the following industry
concentrations greater than 10% at April 30, 2004 (as a percentage of net
assets) (unaudited):
General Purpose 37.0%
General Obligation 16.5%
California Insured Intermediate Municipal Fund had the following insurance
concentrations greater than 10% at April 30, 2004 (as a percentage of net
assets) (unaudited):
MBIA 32.7%
AMBAC 27.3%
FSA 15.4%
Unrealized
Number of Value Appreciation
Contracts (000s) (000s)
- --------- ------ ------------
Futures Contracts-Short Position
150 U.S. 5 Year Treasury Note,
June 2004 $16,491 $281
32 U.S. 10 Year Treasury Note,
June 2004 3,536 81
----
Net Unrealized Appreciation of
Futures Contracts $362
====
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
CIFG -- CDC IXIS Financial Guaranty North America, Inc.
COP -- Certificates of Participation
FGIC -- Federal Guaranty Insurance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GO -- General Obligation Bond
IBC -- Insured Bond Certificate
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
TCRS -- Transferable Custodial Receipts
XLCA -- XL Capital Assurance
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
53
statements of assets and liabilities
WM GROUP OF FUNDS
April 30, 2004 (unaudited)
(In thousands)
Equity Growth & West Coast
REIT Income Income Equity
Fund Fund Fund Fund
-------- ---------- ---------- -----------
ASSETS:
Investments, at value (a):
Securities $240,792 $1,227,594 $1,948,303 $1,162,205
Investments held as collateral for
securities loaned -- 127,388 203,692 71,339
-------- ---------- ---------- ----------
Total Investments (a) 240,792 1,354,982 2,151,995 1,233,544
Cash --* -- 1 --*
Unrealized appreciation of forward
foreign currency contracts -- -- -- --
Dividends and/or interest receivable 363 2,169 2,227 286
Receivable for Fund shares sold 431 6,605 3,234 3,965
Receivable for investment
securities sold -- -- -- 6,290
Prepaid expenses 4 21 35 23
-------- ---------- ---------- ----------
Total Assets 241,590 1,363,777 2,157,492 1,244,108
-------- ---------- ---------- ----------
LIABILITIES:
Payable upon return of
securities loaned -- 127,388 203,692 71,339
Unrealized depreciation of forward
foreign currency contracts -- -- -- --
Payable for Fund shares redeemed 39 547 686 649
Payable for when-issued securities
purchased -- -- -- --
Payable for investment
securities purchased 368 -- -- 5,302
Investment advisory fee payable 164 531 826 523
Shareholder servicing and
distribution fees payable 7 185 217 242
Transfer agent fees payable 2 57 85 87
Variation margin -- -- -- --
Dividends payable -- -- -- --
Due to custodian -- 37 -- --
Accrued expenses and other payables 35 162 252 209
-------- ---------- ---------- ----------
Total Liabilities 615 128,907 205,758 78,351
-------- ---------- ---------- ----------
NET ASSETS $240,975 $1,234,870 $1,951,734 $1,165,757
======== ========== ========== ==========
(a) Investments, at cost $207,742 $1,165,252 $1,774,426 $984,638
======== ========== ========== ==========
Mid Cap Small Cap
Stock Growth Value
Fund Fund Fund
-------- ---------- -----------
ASSETS:
Investments, at value (a):
Securities $605,058 $1,282,591 $ 212,949
Investments held as collateral for
securities loaned 22,979 124,627 13,906
-------- ---------- ----------
Total Investments (a) 628,037 1,407,218 226,855
Cash --* 62 --
Unrealized appreciation of forward
foreign currency contracts -- 43 --
Dividends and/or interest receivable 388 689 337
Receivable for Fund shares sold 1,406 2,817 310
Receivable for investment
securities sold -- 8,243 809
Prepaid expenses 10 21 20
-------- ---------- ----------
Total Assets 629,841 1,419,093 228,331
-------- ---------- ----------
LIABILITIES:
Payable upon return of
securities loaned 22,979 124,627 13,906
Unrealized depreciation of forward
foreign currency contracts -- 1 --
Payable for Fund shares redeemed 215 652 1
Payable for when-issued securities
purchased -- -- --
Payable for investment
securities purchased 7,150 20,028 2,468
Investment advisory fee payable 366 805 150
Shareholder servicing and
distribution fees payable 28 131 1
Transfer agent fees payable 11 110 --*
Variation margin -- -- --
Dividends payable -- -- --
Due to custodian -- -- 53
Accrued expenses and other payables 56 260 17
-------- ---------- ----------
Total Liabilities 30,805 146,614 16,596
-------- ---------- ----------
NET ASSETS $599,036 $1,272,479 $ 211,735
======== ========== ==========
(a) Investments, at cost $516,852 $1,334,341 $ 235,222
======== ========== ==========
<FN>
- -------
*Amount represents less than $500.
See Notes to Financial Statements.
54
U.S.
Small Cap International Short Term Government
Growth Growth Income Securities Income
Fund Fund Fund Fund Fund
--------- ------------- ---------- ---------- ----------
ASSETS:
Investments, at value (a):
Securities $322,803 $482,478 $267,705 $1,436,937 $1,110,608
Investments held as collateral for
securities loaned 48,352 85,616 -- -- --
-------- -------- -------- ---------- ----------
Total Investments (a) 371,155 568,094 267,705 1,436,937 1,110,608
Cash --* --* -- 1 --
Unrealized appreciation of forward
foreign currency contracts -- 770 -- -- --
Dividends and/or interest receivable 23 2,582 3,210 7,086 13,117
Receivable for Fund shares sold 952 1,002 399 2,528 983
Receivable for investment
securities sold 1,624 659 4 3 --
Prepaid expenses 10 8 6 25 24
-------- -------- -------- ---------- ----------
Total Assets 373,764 573,115 271,324 1,446,580 1,124,732
-------- -------- -------- ---------- ----------
LIABILITIES:
Payable upon return of
securities loaned 48,352 85,616 -- -- --
Unrealized depreciation of forward
foreign currency contracts -- 574 -- -- --
Payable for Fund shares redeemed 162 10 6,912 1,868 1,578
Payable for when-issued securities
purchased -- -- -- 24,012 --
Payable for investment
securities purchased 2,220 759 -- -- --
Investment advisory fee payable 240 812 107 571 463
Shareholder servicing and
distribution fees payable 38 11 57 202 188
Transfer agent fees payable 34 11 -- 56 48
Variation margin -- -- 20 -- --
Dividends payable -- -- 65 265 506
Due to custodian -- -- 1 -- 55
Accrued expenses and other payables 75 79 33 144 116
-------- -------- -------- ---------- ----------
Total Liabilities 51,121 87,872 7,195 27,118 2,954
-------- -------- -------- ---------- ----------
NET ASSETS $322,643 $485,243 $264,129 $1,419,462 $1,121,778
======== ======== ======== ========== ==========
(a) Investments, at cost $370,604 $510,962 $263,362 $1,443,251 $1,081,339
======== ======== ======== ========== ==========
California
Insured
High Tax-Exempt California Intermediate
Yield Bond Municipal Municipal
Fund Fund Fund Fund
-------- ---------- ---------- ------------
ASSETS:
Investments, at value (a):
Securities $679,173 $234,991 $481,793 $164,313
Investments held as collateral for
securities loaned -- -- -- --
-------- -------- -------- --------
Total Investments (a) 679,173 234,991 481,793 164,313
Cash -- 49 -- 65
Unrealized appreciation of forward
foreign currency contracts -- -- -- --
Dividends and/or interest receivable 10,106 3,580 6,374 2,065
Receivable for Fund shares sold 645 102 172 338
Receivable for investment
securities sold 38,038 1,658 -- 3,073
Prepaid expenses 13 6 12 4
-------- -------- -------- --------
Total Assets 727,975 240,386 488,351 169,858
-------- -------- -------- --------
LIABILITIES:
Payable upon return of
securities loaned -- -- -- --
Unrealized depreciation of forward
foreign currency contracts -- -- -- --
Payable for Fund shares redeemed 3,008 1,094 2,129 1,999
Payable for when-issued securities
purchased -- 1,780 15,344 --
Payable for investment
securities purchased 37,274 -- -- --
Investment advisory fee payable 312 100 197 71
Shareholder servicing and
distribution fees payable 110 78 243 92
Transfer agent fees payable 26 10 19 7
Variation margin -- 27 42 41
Dividends payable 515 258 543 97
Due to custodian 244 -- 148 --
Accrued expenses and other payables 29 35 75 39
-------- -------- -------- --------
Total Liabilities 41,518 3,382 18,740 2,346
-------- -------- -------- --------
NET ASSETS $686,457 $237,004 $469,611 $167,512
======== ======== ======== ========
(a) Investments, at cost $635,319 $220,243 $468,657 $162,692
======== ======== ======== ========
See Notes to Financial Statements.
55
statements of assets and liabilities (continued)
WM GROUP OF FUNDS
April 30, 2004 (unaudited)
(In thousands)
Equity Growth & West Coast
REIT Income Income Equity
Fund Fund Fund Fund
-------- ---------- ---------- ----------
NET ASSETS consist of:
Undistributed net investment income/
(accumulated net investment loss) $ 1,300 $ 1,752 $ 5,936 $ 948
Accumulated net realized gain/(loss)
on investment transactions (5) (29,871) (105,142) 16,632
Net unrealized appreciation/(depreciation)
of investments 33,050 189,730 377,569 248,906
Paid-in capital 206,630 1,073,259 1,673,371 899,271
-------- ---------- ---------- ----------
Total Net Assets $240,975 $1,234,870 $1,951,734 $1,165,757
======== ========== ========== ==========
NET ASSETS:
Class A Shares $ 5,366 $ 344,174 $ 599,996 $ 588,069
======== ========== ========== ==========
Class B Shares $ 4,066 $ 121,500 $ 108,410 $ 132,798
======== ========== ========== ==========
Class C Shares $ 2,540 $ 17,265 $ 1,421 $ 6,741
======== ========== ========== ==========
Class I Shares $229,003 $ 751,931 $1,241,907 $ 438,149
======== ========== ========== ==========
SHARES OUTSTANDING:
Class A Shares 420 20,430 25,635 17,564
======== ========== ========== ==========
Class B Shares 319 7,258 4,801 4,395
======== ========== ========== ==========
Class C Shares 199 1,036 64 223
======== ========== ========== ==========
Class I Shares 17,912 44,648 52,907 12,978
======== ========== ========== ==========
CLASS A SHARES:**
Net asset value per share of beneficial
interest outstanding* $ 12.77 $ 16.85 $ 23.41 $ 33.48
======== ========== ========== ==========
Maximum sales charge 5.50% 5.50% 5.50% 5.50%
======== ========== ========== ==========
Maximum offering price per share of
beneficial interest outstanding $ 13.51 $ 17.83 $ 24.77 $ 35.43
======== ========== ========== ==========
CLASS B SHARES:**
Net asset value and offering price per
share of beneficial interest outstanding* $ 12.74 $ 16.74 $ 22.58 $ 30.22
======== ========== ========== ==========
CLASS C SHARES:**
Net asset value and offering price per
share of beneficial interest outstanding* $ 12.74 $ 16.66 $ 22.32 $ 30.29
======== ========== ========== ==========
CLASS I SHARES:**
Net asset value, offering and redemption
price per share of beneficial interest
outstanding $ 12.79 $ 16.84 $ 23.47 $ 33.76
======== ========== ========== ==========
Mid Cap Small Cap
Stock Growth Value
Fund Fund Fund
-------- ---------- ---------
NET ASSETS consist of:
Undistributed net investment income/
(accumulated net investment loss) $ 293 $ (766) $ 615
Accumulated net realized gain/(loss)
on investment transactions 13,232 (387,044) 1,393
Net unrealized appreciation/(depreciation)
of investments 111,185 72,919 (8,367)
Paid-in capital 474,326 1,587,370 218,094
-------- ---------- --------
Total Net Assets $599,036 $1,272,479 $211,735
======== ========== ========
NET ASSETS:
Class A Shares $ 51,513 $ 124,935 $ 1,404
======== ========== ========
Class B Shares $ 19,258 $ 120,723 $ 238
======== ========== ========
Class C Shares $ 1,071 $ 1,387 $ 243
======== ========== ========
Class I Shares $527,194 $1,025,434 $209,850
======== ========== ========
SHARES OUTSTANDING:
Class A Shares 3,118 8,777 145
======== ========== ========
Class B Shares 1,212 9,350 25
======== ========== ========
Class C Shares 67 107 25
======== ========== ========
Class I Shares 31,607 69,696 21,644
======== ========== ========
CLASS A SHARES:**
Net asset value per share of beneficial
interest outstanding* $ 16.52 $ 14.23 $ 9.69
======== ========== ========
Maximum sales charge 5.50% 5.50% 5.50%
======== ========== ========
Maximum offering price per share of
beneficial interest outstanding $ 17.48 $ 15.06 $ 10.25
======== ========== ========
CLASS B SHARES:**
Net asset value and offering price per
share of beneficial interest outstanding* $ 15.89 $ 12.91 $ 9.68
======== ========== ========
CLASS C SHARES:**
Net asset value and offering price per
share of beneficial interest outstanding* $ 15.91 $ 12.99 $ 9.69
======== ========== ========
CLASS I SHARES:**
Net asset value, offering and redemption
price per share of beneficial interest
outstanding $ 16.68 $ 14.71 $ 9.70
======== ========== ========
<FN>
- --------------
* Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge and/or applicable
redemption fees for Class A Shares of the International Growth Fund.
** Net asset value and maximum offering price are not shown in thousands.
See Notes to Financial Statements.
56
U.S.
Small Cap International Short Term Government
Growth Growth Income Securities Income
Fund Fund Fund Fund Fund
--------- -------- -------- ---------- ----------
NET ASSETS consist of:
Undistributed net investment income/
(accumulated net investment loss) $ (1,294) $ 1,107 $ 82 $ (3,898) $ (1,824)
Accumulated net realized gain/(loss)
on investment transactions (32,764) (36,567) (5,174) (13,255) (12,932)
Net unrealized appreciation/(depreciation)
of investments 551 57,294 4,581 (6,314) 29,269
Paid-in capital 356,150 463,409 264,640 1,442,929 1,107,265
-------- -------- -------- ---------- ----------
Total Net Assets $322,643 $485,243 $264,129 $1,419,462 $1,121,778
======== ======== ======== ========== ==========
NET ASSETS:
Class A Shares $100,246 $ 35,166 $ 57,553 $ 153,683 $ 152,835
======== ======== ======== ========== ==========
Class B Shares $ 16,541 $ 4,131 $ 34,711 $ 189,908 $ 171,595
======== ======== ======== ========== ==========
Class C Shares $ 995 $ 346 $ 17,661 $ 9,345 $ 13,145
======== ======== ======== ========== ==========
Class I Shares $204,861 $445,600 $154,204 $1,066,526 $ 784,203
======== ======== ======== ========== ==========
SHARES OUTSTANDING:
Class A Shares 7,182 3,938 24,190 14,284 16,443
======== ======== ======== ========== ==========
Class B Shares 1,337 481 14,584 17,663 18,405
======== ======== ======== ========== ==========
Class C Shares 80 41 7,419 870 1,410
======== ======== ======== ========== ==========
Class I Shares 14,286 49,715 64,777 99,102 84,202
======== ======== ======== ========== ==========
CLASS A SHARES:**
Net asset value per share of beneficial
interest outstanding* $ 13.96 $ 8.93 $ 2.38 $ 10.76 $ 9.29
======== ======== ======== ========== ==========
Maximum sales charge 5.50% 5.50% 3.50% 4.50% 4.50%
======== ======== ======== ========== ==========
Maximum offering price per share of
beneficial interest outstanding $ 14.77 $ 9.45 $ 2.47 $ 11.27 $ 9.73
======== ======== ======== ========== ==========
CLASS B SHARES:**
Net asset value and offering price per
share of beneficial interest outstanding* $ 12.37 $ 8.59 $ 2.38 $ 10.75 $ 9.32
======== ======== ======== ========== ==========
CLASS C SHARES:**
Net asset value and offering price per
share of beneficial interest outstanding* $ 12.50 $ 8.53 $ 2.38 $ 10.74 $ 9.32
======== ======== ======== ========== ==========
CLASS I SHARES:**
Net asset value, offering and redemption
price per share of beneficial interest
outstanding $ 14.34 $ 8.96 $ 2.38 $ 10.76 $ 9.31
======== ======== ======== ========== ==========
California
Insured
High Tax-Exempt California Intermediate
Yield Bond Municipal Municipal
Fund Fund Fund Fund
-------- ---------- ---------- ------------
NET ASSETS consist of:
Undistributed net investment income/
(accumulated net investment loss) $ (1,344) $ 110 $ 57 $ 62
Accumulated net realized gain/(loss)
on investment transactions (44,004) 2,018 340 20
Net unrealized appreciation/(depreciation)
of investments 43,854 14,850 13,811 1,983
Paid-in capital 687,951 220,026 455,403 165,447
-------- -------- -------- --------
Total Net Assets $686,457 $237,004 $469,611 $167,512
======== ======== ======== ========
NET ASSETS:
Class A Shares $ 65,714 $193,573 $239,953 $ 77,603
======== ======== ======== ========
Class B Shares $ 82,787 $ 39,481 $223,524 $ 80,523
======== ======== ======== ========
Class C Shares $ 30,119 $ 3,950 $ 6,134 $ 9,386
======== ======== ======== ========
Class I Shares $507,837 -- -- --
========
SHARES OUTSTANDING:
Class A Shares 8,159 24,986 21,676 7,137
======== ======== ======== ========
Class B Shares 10,231 5,095 20,191 7,405
======== ======== ======== ========
Class C Shares 3,723 510 554 863
======== ======== ======== ========
Class I Shares 63,155 -- -- --
========
CLASS A SHARES:**
Net asset value per share of beneficial
interest outstanding* $ 8.05 $7.75 $ 11.07 $ 10.87
======== ======== ======== ========
Maximum sales charge 4.50% 4.50% 4.50% 4.50%
======== ======== ======== ========
Maximum offering price per share of
beneficial interest outstanding $ 8.43 $8.12 $ 11.59 $ 11.38
======== ======== ======== ========
CLASS B SHARES:**
Net asset value and offering price per
share of beneficial interest outstanding* $ 8.09 $7.75 $ 11.07 $ 10.87
======== ======== ======== ========
CLASS C SHARES:**
Net asset value and offering price per
share of beneficial interest outstanding* $ 8.09 $7.75 $ 11.07 $ 10.87
======== ======== ======== ========
CLASS I SHARES:**
Net asset value, offering and redemption
price per share of beneficial interest
outstanding $ 8.04 -- -- --
========
See Notes to Financial Statements.
57
statements of operations
WM GROUP OF FUNDS
For the Six Months Ended April 30, 2004 (unaudited)
(In thousands)
Equity Growth & West Coast
REIT Income Income Equity
Fund Fund Fund Fund
------ -------- -------- -------
INVESTMENT INCOME:
Dividends $4,862 $ 12,299 $ 16,599 $ 5,901
Interest 77 2,125 464 264
Foreign withholding taxes -- (22) (172) --
Securities lending income -- 251 72 50
------ -------- -------- -------
Total investment income 4,939 14,653 16,963 6,215
------ -------- -------- -------
EXPENSES:
Investment advisory fee 942 2,882 4,662 3,033
Custodian fees 5 20 32 27
Legal and audit fees 13 28 35 29
Registration and filing fees 36 53 58 38
Printing and postage expenses 5 97 139 164
Other 22 121 196 157
Shareholder servicing and distribution fees:
Class A Shares 6 385 724 713
Class B Shares 18 568 576 650
Class C Shares 11 59 6 27
Transfer agent fees:
Class A Shares 5 118 232 234
Class B Shares 4 134 192 185
Class C Shares 1 8 2 5
------ -------- -------- -------
Total expenses 1,068 4,473 6,854 5,262
Fees waived by the transfer agent -- -- -- --
Fees reduced by custodian credits --* (1) --* --*
------ -------- -------- -------
Net expenses 1,068 4,472 6,854 5,262
------ -------- -------- -------
NET INVESTMENT INCOME/(LOSS) 3,871 10,181 10,109 953
------ -------- -------- -------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on
investment transactions -- (26,434) (23,678) 30,368
Net change in unrealized appreciation/
depreciation of investments 3,485 111,486 168,602 8,542
------ -------- -------- -------
Net realized and unrealized gain/(loss) on
investments 3,485 85,052 144,924 38,910
------ -------- -------- -------
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $7,356 $ 95,233 $155,033 $39,863
====== ======== ======== =======
Mid Cap Small Cap
Stock Growth Value
Fund Fund Fund**
------- ------- -------
INVESTMENT INCOME:
Dividends $ 2,967 $ 4,850 $ 929
Interest 230 345 48
Foreign withholding taxes (5) (89) (60)
Securities lending income 13 111 10
------- ------- -------
Total investment income 3,205 5,217 927
------- ------- -------
EXPENSES:
Investment advisory fee 1,957 4,226 267
Custodian fees 12 55 8
Legal and audit fees 22 29 9
Registration and filing fees 34 39 22
Printing and postage expenses 22 192 2
Other 50 147 6
Shareholder servicing and distribution fees:
Class A Shares 58 152 --*
Class B Shares 94 646 --*
Class C Shares 4 5 --*
Transfer agent fees:
Class A Shares 21 217 --*
Class B Shares 31 333 --*
Class C Shares 1 2 --*
------- ------- -------
Total expenses 2,306 6,043 314
Fees waived by the transfer agent -- -- --
Fees reduced by custodian credits --* (1) (2)
------- ------- -------
Net expenses 2,306 6,042 312
------- ------- -------
NET INVESTMENT INCOME/(LOSS) 899 (825) 615
------- ------- -------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on
investment transactions 15,845 39,828 1,393
Net change in unrealized appreciation/
depreciation of investments 20,359 (7,885) (8,367)
------- ------- -------
Net realized and unrealized gain/(loss) on
investments 36,204 31,943 (6,974)
------- ------- -------
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $37,103 $31,118 $(6,359)
======= ======= =======
<FN>
- --------------
* Amount represents less than $500.
** The Small Cap Value Fund commenced operations on March 1, 2004.
See Notes to Financial Statements.
58
U.S.
Small Cap International Short Term Government
Growth Growth Income Securities Income
Fund Fund Fund Fund Fund
-------- ------- ------- -------- -------
INVESTMENT INCOME:
Dividends $ 718 $ 4,634 $ -- $ -- $ 163
Interest 10 116 5,354 28,073 32,052
Foreign withholding taxes -- (513) -- -- --
Securities lending income 191 112 -- -- --
-------- ------- ------- -------- -------
Total investment income 919 4,349 5,354 28,073 32,215
-------- ------- ------- -------- -------
EXPENSES:
Investment advisory fee 1,655 1,839 643 3,090 2,780
Custodian fees 20 169 7 30 23
Legal and audit fees 23 22 19 28 45
Registration and filing fees 15 23 28 73 38
Printing and postage expenses 51 13 20 67 54
Other 52 57 35 127 125
Shareholder servicing and distribution fees:
Class A Shares 121 39 82 206 192
Class B Shares 96 22 193 1,099 921
Class C Shares 4 1 86 54 72
Transfer agent fees:
Class A Shares 121 43 28 105 95
Class B Shares 54 15 23 121 94
Class C Shares 1 --* 7 5 8
-------- ------- ------- -------- -------
Total expenses 2,213 2,243 1,171 5,005 4,447
Fees waived by the transfer agent -- -- (58) -- --
Fees reduced by custodian credits --* --* --* (4) (1)
-------- ------- ------- -------- -------
Net expenses 2,213 2,243 1,113 5,001 4,446
-------- ------- ------- -------- -------
NET INVESTMENT INCOME/(LOSS) (1,294) 2,106 4,241 23,072 27,769
-------- ------- ------- -------- -------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on
investment transactions 35,711 5,008 (262) 413 259
Net change in unrealized appreciation/
depreciation of investments (11,119) 19,972 (1,175) (14,014) (4,518)
-------- ------- ------- -------- -------
Net realized and unrealized gain/(loss) on
investments 24,592 24,980 (1,437) (13,601) (4,259)
-------- ------- ------- -------- -------
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $ 23,298 $27,086 $ 2,804 $ 9,471 $23,510
======== ======= ======= ======== =======
California
Insured
High Tax-Exempt California Intermediate
Yield Bond Municipal Municipal
Fund Fund Fund Fund
------- ---------- ---------- ------------
INVESTMENT INCOME:
Dividends $ 981 $ -- $ -- $ --
Interest 25,285 6,443 12,804 3,360
Foreign withholding taxes -- -- -- --
Securities lending income -- -- -- --
------- ------- ------- -------
Total investment income 26,266 6,443 12,804 3,360
------- ------- ------- -------
EXPENSES:
Investment advisory fee 1,814 632 1,250 440
Custodian fees 22 6 9 5
Legal and audit fees 41 17 21 17
Registration and filing fees 31 37 15 12
Printing and postage expenses 17 19 25 11
Other 59 42 72 27
Shareholder servicing and distribution fees:
Class A Shares 74 258 311 98
Class B Shares 427 216 1,217 440
Class C Shares 145 22 37 49
Transfer agent fees:
Class A Shares 28 44 46 10
Class B Shares 41 9 39 16
Class C Shares 13 1 1 2
------- ------- ------- -------
Total expenses 2,712 1,303 3,043 1,127
Fees waived by the transfer agent -- -- -- --
Fees reduced by custodian credits (2) --* --* --*
------- ------- ------- -------
Net expenses 2,710 1,303 3,043 1,127
------- ------- ------- -------
NET INVESTMENT INCOME/(LOSS) 23,556 5,140 9,761 2,233
------- ------- ------- -------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on
investment transactions 10,455 1,737 610 (632)
Net change in unrealized appreciation/
depreciation of investments 3,863 (5,210) (6,595) (1,827)
------- ------- ------- -------
Net realized and unrealized gain/(loss) on
investments 14,318 (3,473) (5,985) (2,459)
------- ------- ------- -------
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $37,874 $ 1,667 $ 3,776 $ (226)
======= ======= ======= =======
See Notes to Financial Statements.
59
statements of changes in net assets
WM GROUP OF FUNDS
For the Six Months Ended April 30, 2004 (unaudited)
(In thousands)
Equity Growth & West Coast
REIT Income Income Equity
Fund Fund Fund Fund
-------- ---------- ---------- ----------
Net investment income/(loss) $ 3,871 $ 10,181 $ 10,109 $ 953
Net realized gain/(loss) on
investment transactions -- (26,434) (23,678) 30,368
Net change in unrealized appreciation/
depreciation of investments 3,485 111,486 168,602 8,542
-------- ---------- ---------- ----------
Net increase/(decrease) in net assets
resulting from operations 7,356 95,233 155,033 39,863
Distributions to shareholders from:
Net investment income:
Class A Shares (56) (2,825) (5,188) --
Class B Shares (33) (495) -- --
Class C Shares (23) (66) (6) --
Class I Shares (3,398) (7,056) (12,393) (437)
Net realized gains on investments:
Class A Shares (15) -- -- --
Class B Shares (13) -- -- --
Class C Shares (7) -- -- --
Class I Shares (845) -- -- --
Net increase/(decrease) in net assets from
Fund share transactions:
Class A Shares 2,278 51,560 12,792 44,038
Class B Shares 1,294 8,294 (17,100) 6,297
Class C Shares 1,236 10,636 517 3,080
Class I Shares 43,774 171,574 264,545 74,431
Redemption fees -- -- -- --
-------- ---------- ---------- ----------
Net increase/(decrease) in net assets 51,548 326,855 398,200 167,272
NET ASSETS:
Beginning of period $189,427 $ 908,015 $1,553,534 $ 998,485
-------- ---------- ---------- ----------
End of period $240,975 $1,234,870 $1,951,734 $1,165,757
======== ========== ========== ==========
Undistributed net investment income/
(accumulated net investment loss)
at end of period $ 1,300 $ 1,752 $ 5,936 $ 948
======== ========== ========== ==========
Mid Cap Small Cap
Stock Growth Value
Fund Fund Fund**
-------- ---------- ---------
Net investment income/(loss) $ 899 $ (825) $ 615
Net realized gain/(loss) on
investment transactions 15,845 39,828 1,393
Net change in unrealized appreciation/
depreciation of investments 20,359 (7,885) (8,367)
-------- ---------- --------
Net increase/(decrease) in net assets
resulting from operations 37,103 31,118 (6,359)
Distributions to shareholders from:
Net investment income:
Class A Shares (34) -- --
Class B Shares -- -- --
Class C Shares -- -- --
Class I Shares (1,465) -- --
Net realized gains on investments:
Class A Shares (101) -- --
Class B Shares (46) -- --
Class C Shares (2) -- --
Class I Shares (975) -- --
Net increase/(decrease) in net assets from
Fund share transactions:
Class A Shares 9,743 5,899 1,460
Class B Shares 572 (13,119) 246
Class C Shares 475 815 252
Class I Shares 127,363 338,871 216,136
Redemption fees -- -- --
-------- ---------- --------
Net increase/(decrease) in net assets 172,633 363,584 211,735
NET ASSETS:
Beginning of period $426,403 $ 908,895 $ --
-------- ---------- --------
End of period $599,036 $1,272,479 $211,735
======== ========== ========
Undistributed net investment income/
(accumulated net investment loss)
at end of period $ 293 $ (766) $ 615
======== ========== ========
<FN>
- --------
* Amount represents less than $500.
** The Small Cap Value Fund commenced operations on March 1, 2004.
See Notes to Financial Statements.
60
U.S.
Small Cap International Short Term Government
Growth Growth Income Securities Income
Fund Fund Fund Fund Fund
--------- ------------- ---------- ---------- ----------
Net investment income/(loss) $ (1,294) $ 2,106 $ 4,241 $ 23,072 $ 27,769
Net realized gain/(loss) on
investment transactions 35,711 5,008 (262) 413 259
Net change in unrealized appreciation/
depreciation of investments (11,119) 19,972 (1,175) (14,014) (4,518)
--------- -------- -------- ---------- ----------
Net increase/(decrease) in net assets
resulting from operations 23,298 27,086 2,804 9,471 23,510
Distributions to shareholders from:
Net investment income:
Class A Shares -- (249) (1,040) (3,576) (4,114)
Class B Shares -- -- (471) (3,959) (4,273)
Class C Shares -- (1) (208) (196) (336)
Class I Shares -- (4,799) (2,458) (19,769) (21,753)
Net realized gains on investments:
Class A Shares -- -- -- -- --
Class B Shares -- -- -- -- --
Class C Shares -- -- -- -- --
Class I Shares -- -- -- -- --
Net increase/(decrease) in net assets from
Fund share transactions:
Class A Shares 16,543 7,048 (14,078) (21,414) 84
Class B Shares (2,247) (174) (9,448) (59,172) (22,108)
Class C Shares 607 247 (83) (3,906) (2,075)
Class I Shares (152,504) 108,052 25,595 421,941 110,380
Redemption fees -- --* -- -- --
--------- -------- -------- ---------- ----------
Net increase/(decrease) in net assets (114,303) 137,210 613 319,420 79,315
NET ASSETS:
Beginning of period $ 436,946 $348,033 $263,516 $1,100,042 $1,042,463
--------- -------- -------- ---------- ----------
End of period $ 322,643 $485,243 $264,129 $1,419,462 $1,121,778
========= ======== ======== ========== ==========
Undistributed net investment income/
(accumulated net investment loss)
at end of period $ (1,294) $ 1,107 $ 82 $ (3,898) $ (1,824)
========= ======== ======== ========== ==========
California
Insured
High Tax-Exempt California Intermediate
Yield Bond Municipal Municipal
Fund Fund Fund Fund
-------- ----------- ---------- ------------
Net investment income/(loss) $ 23,556 $ 5,140 $ 9,761 $ 2,233
Net realized gain/(loss) on
investment transactions 10,455 1,737 610 (632)
Net change in unrealized appreciation/
depreciation of investments 3,863 (5,210) (6,595) (1,827)
-------- ----------- -------- --------
Net increase/(decrease) in net assets
resulting from operations 37,874 1,667 3,776 (226)
Distributions to shareholders from:
Net investment income:
Class A Shares (2,223) (4,329) (5,316) (1,154)
Class B Shares (2,921) (744) (4,297) (970)
Class C Shares (978) (76) (130) (109)
Class I Shares (19,395) -- -- --
Net realized gains on investments:
Class A Shares -- (2,309) -- (696)
Class B Shares -- (496) -- (847)
Class C Shares -- (50) -- (94)
Class I Shares -- -- -- --
Net increase/(decrease) in net assets from
Fund share transactions:
Class A Shares 16,299 (8,660) (9,374) 4,305
Class B Shares (2,842) (4,547) (29,212) (10,990)
Class C Shares 5,134 (278) (1,985) (703)
Class I Shares 73,905 -- -- --
Redemption fees -- -- -- --
-------- ----------- -------- --------
Net increase/(decrease) in net assets 104,853 (19,822) (46,538) (11,484)
NET ASSETS:
Beginning of period $581,604 $ 256,826 $516,149 $178,996
-------- ----------- -------- --------
End of period $686,457 $ 237,004 $469,611 $167,512
======== =========== ======== ========
Undistributed net investment income/
(accumulated net investment loss)
at end of period $ (1,344) $ 110 $ 57 $ 62
======== =========== ======== ========
See Notes to Financial Statements.
61
statements of changes in net assets (continued)
WM GROUP OF FUNDS
For the Year Ended October 31, 2003
(In thousands)
Equity Growth & West Coast Mid Cap
REIT Income Income Equity Stock Growth
Fund** Fund Fund Fund Fund Fund
-------- -------- ---------- -------- -------- --------
Net investment income/(loss) $ 3,943 $ 17,884 $ 16,097 $ 891 $ 1,017 $ (2,473)
Net realized gain/(loss) on
investment transactions 351 (1,976) (48,720) (2,358) 2,758 (22,380)
Net change in unrealized appreciation/
depreciation of investments 29,565 142,701 251,269 249,254 68,840 163,238
-------- -------- ---------- -------- -------- --------
Net increase in net assets
resulting from operations 33,859 158,609 218,646 247,787 72,615 138,385
Distributions to shareholders from:
Net investment income:
Class A Shares (25) (5,278) (4,443) -- -- --
Class B Shares (20) (1,310) -- -- -- --
Class C Shares (7) (45) (2) -- -- --
Class I Shares (2,428) (10,743) (8,955) -- (731) --
Net realized gains on investments:
Class A Shares -- -- -- -- -- --
Class B Shares -- -- -- -- -- --
Class C Shares -- -- -- -- -- --
Class I Shares -- -- -- -- -- --
Net increase/(decrease) in net assets from
Fund share transactions:
Class A Shares 2,871 24,812 (13,099) 13,010 3,423 1,597
Class B Shares 2,536 4,186 (25,890) (11,883) 1,097 (19,346)
Class C Shares 1,223 3,615 499 1,627 433 284
Class I Shares 151,418 101,118 116,890 73,546 76,625 207,625
Redemption fees -- -- -- -- -- --
-------- -------- ---------- -------- -------- --------
Net increase/(decrease) in net assets 189,427 274,964 283,646 324,087 153,462 328,545
NET ASSETS:
Beginning of year -- 633,051 1,269,888 674,398 272,941 580,350
-------- -------- ---------- -------- -------- --------
End of year $189,427 $908,015 $1,553,534 $998,485 $426,403 $908,895
======== ======== ========== ======== ======== ========
Undistributed net investment income
at end of year $ 939 $ 2,013 $ 13,414 $ 432 $ 893 $ 59
======== ======== ========== ======== ======== ========
<FN>
- --------------
* Amount represents less than $500.
** The REIT Fund commenced operations on March 1, 2003.
*** Formerly the Small Cap Stock Fund.
See Notes to Financial Statements.
62
U.S.
Small Cap International Short Term Government
Growth Growth Income Securities Income
Fund*** Fund Fund Fund Fund
-------- -------- ---------- ---------- ----------
Net investment income/(loss) $ (1,131) $ 2,540 $ 6,961 $ 35,146 $ 51,298
Net realized gain/(loss) on
investment transactions (39,625) (12,285) (120) 3,661 (554)
Net change in unrealized appreciation/
depreciation of investments 198,438 73,387 3,462 (22,244) 34,433
-------- -------- -------- ---------- ----------
Net increase in net assets
resulting from operations 157,682 63,642 10,303 16,563 85,177
Distributions to shareholders from:
Net investment income:
Class A Shares -- (132) (1,634) (9,254) (8,813)
Class B Shares -- -- (1,127) (11,697) (9,963)
Class C Shares -- --* (365) (645) (702)
Class I Shares -- (2,398) (4,377) (23,771) (37,421)
Net realized gains on investments:
Class A Shares -- -- -- -- --
Class B Shares -- -- -- -- --
Class C Shares -- -- -- -- --
Class I Shares -- -- -- -- --
Net increase/(decrease) in net assets from
Fund share transactions:
Class A Shares 8,514 (33) 43,313 (13,689) 18,854
Class B Shares (3,193) (1,504) 19,193 (11,451) 47,302
Class C Shares 246 24 12,002 2,282 7,310
Class I Shares 92,786 77,066 38,527 306,496 172,935
Redemption fees -- 128 -- -- --
-------- -------- -------- ---------- ----------
Net increase/(decrease) in net assets 256,035 136,793 115,835 254,834 274,679
NET ASSETS:
Beginning of year 180,911 211,240 147,681 845,208 767,784
-------- -------- -------- ---------- ----------
End of year $436,946 $348,033 $263,516 $1,100,042 $1,042,463
======== ======== ======== ========== ==========
Undistributed net investment income
at end of year $ -- $ 4,050 $ 18 $ 530 $ 883
======== ======== ======== ========== ==========
California
Insured
High Tax-Exempt California Intermediate
Yield Bond Municipal Municipal
Fund Fund Fund Fund
-------- ---------- ---------- ------------
Net investment income/(loss) $ 36,042 $ 10,797 $ 21,643 $ 4,981
Net realized gain/(loss) on
investment transactions (16,228) 3,451 (585) 2,643
Net change in unrealized appreciation/
depreciation of investments 88,798 (1,438) (2,957) (1,578)
-------- -------- -------- --------
Net increase in net assets
resulting from operations 108,612 12,810 18,101 6,046
Distributions to shareholders from:
Net investment income:
Class A Shares (2,848) (9,009) (11,448) (2,332)
Class B Shares (5,361) (1,677) (9,904) (2,389)
Class C Shares (926) (117) (299) (256)
Class I Shares (30,363) -- -- --
Net realized gains on investments:
Class A Shares -- (1,785) (1,820) (290)
Class B Shares -- (397) (1,892) (455)
Class C Shares -- (21) (45) (43)
Class I Shares -- -- -- --
Net increase/(decrease) in net assets from
Fund share transactions:
Class A Shares 30,461 (6,143) (30,048) 18,113
Class B Shares 29,384 (2,166) (36,607) 3,952
Class C Shares 20,399 1,955 1,689 2,355
Class I Shares 127,185 -- -- --
Redemption fees -- -- -- --
-------- -------- -------- --------
Net increase/(decrease) in net assets 276,543 (6,550) (72,273) 24,701
NET ASSETS:
Beginning of year 305,061 263,376 588,422 154,295
-------- -------- -------- --------
End of year $581,604 $256,826 $516,149 $178,996
======== ======== ======== ========
Undistributed net investment income
at end of year $ 617 $ 119 $ 39 $ 62
======== ======== ======== ========
See Notes to Financial Statements.
63
statements of changes in net assets -- capital stock activity
WM GROUP OF FUNDS
(In thousands)
REIT Fund*** Equity Income Fund
------------------------ -------------------------
Six Months Six Months
Ended Period Ended
04/30/04 Ended 04/30/04 Year Ended
(unaudited) 10/31/03 (unaudited) 10/31/03
----------- -------- ----------- ----------
AMOUNT
Class A:
Sold $ 3,304 $ 2,955 $ 69,206 $ 56,481
Issued as reinvestment of dividends 61 22 2,643 4,956
Redeemed (1,087) (106) (20,289) (36,625)
------- -------- -------- --------
Net increase/(decrease) $ 2,278 $ 2,871 $ 51,560 $ 24,812
======= ======== ======== ========
Class B:
Sold $ 1,893 $ 2,702 $ 20,670 $ 26,991
Issued as reinvestment of dividends 35 15 469 1,258
Redeemed (634) (181) (12,845) (24,063)
------- -------- -------- --------
Net increase/(decrease) $ 1,294 $ 2,536 $ 8,294 $ 4,186
======= ======== ======== ========
Class C:
Sold $ 2,016 $ 1,369 $ 11,451 $ 4,653
Issued as reinvestment of dividends 27 6 57 36
Redeemed (807) (152) (872) (1,074)
------- -------- -------- --------
Net increase $ 1,236 $ 1,223 $ 10,636 $ 3,615
======= ======== ======== ========
Class I:
Sold $39,531 $149,045 $164,518 $129,517
Issued as reinvestment of dividends 4,243 2,428 7,056 10,743
Redeemed -- (55) -- (39,142)
------- -------- -------- --------
Net increase/(decrease) $43,774 $151,418 $171,574 $101,118
======= ======== ======== ========
SHARES
Class A:
Sold 242 261 4,110 4,099
Issued as reinvestment of dividends 4 2 161 365
Redeemed (80) (9) (1,209) (2,707)
------- -------- -------- --------
Net increase/(decrease) 166 254 3,062 1,757
======= ======== ======== ========
Class B:
Sold 138 241 1,239 1,956
Issued as reinvestment of dividends 3 1 29 93
Redeemed (48) (16) (776) (1,791)
------- -------- -------- --------
Net increase/(decrease) 93 226 492 258
======= ======== ======== ========
Class C:
Sold 149 118 696 322
Issued as reinvestment of dividends 2 1 3 3
Redeemed (58) (13) (53) (76)
------- -------- -------- --------
Net increase 93 106 646 249
======= ======== ======== ========
Class I:
Sold 2,993 14,399 9,946 9,118
Issued as reinvestment of dividends 316 209 430 789
Redeemed -- (5) -- (3,141)
------- -------- -------- --------
Net increase/(decrease) 3,309 14,603 10,376 6,766
======= ======== ======== ========
Growth & West Coast Equity
Income Fund Fund
------------------------- --------------------------
Six Months Six Months
Ended Ended
04/30/04 Year Ended 04/30/04 Year Ended
(unaudited) 10/31/03 (unaudited) 10/31/03
----------- ---------- ----------- ----------
AMOUNT
Class A:
Sold $ 46,386 $ 66,365 $ 73,905 $ 74,984
Issued as reinvestment of dividends 5,039 4,315 -- --
Redeemed (38,633) (83,779) (29,867) (61,975)
-------- -------- -------- --------
Net increase/(decrease) $ 12,792 $(13,099) $ 44,038 $ 13,009
======== ======== ======== ========
Class B:
Sold $ 6,680 $ 10,310 $ 21,719 $ 19,122
Issued as reinvestment of dividends -- -- -- --
Redeemed (23,780) (36,200) (15,422) (31,005)
-------- -------- -------- --------
Net increase/(decrease) $(17,100) $(25,890) $ 6,297 $(11,883)
======== ======== ======== ========
Class C:
Sold $ 732 $ 650 $ 4,587 $ 2,289
Issued as reinvestment of dividends 6 2 -- --
Redeemed (221) (153) (1,507) (662)
-------- -------- -------- --------
Net increase $ 517 $ 499 $ 3,080 $ 1,627
======== ======== ======== ========
Class I:
Sold $253,207 $200,685 $ 75,054 $ 76,832
Issued as reinvestment of dividends 12,393 8,955 437 --
Redeemed (1,055) (92,750) (1,060) (3,286)
-------- -------- -------- --------
Net increase/(decrease) $264,545 $116,890 $ 74,431 $ 73,546
======== ======== ======== ========
SHARES
Class A:
Sold 1,991 3,449 2,156 2,844
Issued as reinvestment of dividends 229 232 -- --
Redeemed (1,675) (4,358) (873) (2,401)
-------- -------- -------- --------
Net increase/(decrease) 545 (677) 1,283 443
======== ======== ======== ========
Class B:
Sold 300 545 702 780
Issued as reinvestment of dividends -- -- -- --
Redeemed (1,067) (1,942) (501) (1,290)
-------- -------- -------- --------
Net increase/(decrease) (767) (1,397) 201 (510)
======== ======== ======== ========
Class C:
Sold 33 33 148 87
Issued as reinvestment of dividends --** --** -- --
Redeemed (9) (8) (48) (26)
-------- -------- -------- --------
Net increase 24 25 100 61
======== ======== ======== ========
Class I:
Sold 11,091 9,825 2,210 2,740
Issued as reinvestment of dividends 562 480 13 --
Redeemed (46) (5,242) (30) (139)
-------- -------- -------- --------
Net increase/(decrease) 11,607 5,063 2,193 2,601
======== ======== ======== ========
<FN>
- --------
* Amount represents less than $500.
** Amount represents less than 500 shares.
*** The REIT Fund commenced operations on March 1, 2003.
+ The Small Cap Value Fund commenced operations on March 1, 2004.
++ Formerly the Small Cap Stock Fund.
See Notes to Financial Statements.
64
Mid Cap Small Cap
Stock Fund Growth Fund Value Fund+
-------------------------- ------------------------- -----------
Six Months Six Months Period
Ended Ended Ended
04/30/04 Year Ended 04/30/04 Year Ended 04/30/04
(unaudited) 10/31/03 (unaudited) 10/31/03 (unaudited)
----------- ---------- ----------- ---------- -----------
AMOUNT
Class A:
Sold $ 13,443 $ 13,942 $ 17,887 $ 22,793 $ 1,461
Issued as reinvestment of dividends 133 -- -- -- --
Redeemed (3,833) (10,519) (11,988) (21,196) (1)
-------- -------- -------- -------- --------
Net increase/(decrease) $ 9,743 $ 3,423 $ 5,899 $ 1,597 $ 1,460
======== ======== ======== ======== ========
Class B:
Sold $ 2,322 $ 4,263 $ 4,542 $ 8,554 $ 246
Issued as reinvestment of dividends 45 -- -- -- --
Redeemed (1,795) (3,166) (17,661) (27,900) --*
-------- -------- -------- -------- --------
Net increase/(decrease) $ 572 $ 1,097 $(13,119) $(19,346) $ 246
======== ======== ======== ======== ========
Class C:
Sold $ 506 $ 535 $ 955 $ 868 $ 253
Issued as reinvestment of dividends 2 -- -- -- --
Redeemed (33) (102) (140) (584) (1)
-------- -------- -------- -------- --------
Net increase $ 475 $ 433 $ 815 $ 284 $ 252
======== ======== ======== ======== ========
Class I:
Sold $125,003 $ 89,217 $339,101 $221,664 $216,136
Issued as reinvestment of dividends 2,440 731 -- -- --
Redeemed (80) (13,323) (230) (14,039) --
-------- -------- -------- -------- --------
Net increase/(decrease) $127,363 $ 76,625 $338,871 $207,625 $216,136
======== ======== ======== ======== ========
SHARES
Class A:
Sold 821 1,031 1,235 1,869 145
Issued as reinvestment of dividends 9 -- -- -- --
Redeemed (233) (790) (830) (1,764) --**
-------- -------- -------- -------- --------
Net increase/(decrease) 597 241 405 105 145
======== ======== ======== ======== ========
Class B:
Sold 148 326 347 765 25
Issued as reinvestment of dividends 3 -- -- -- --
Redeemed (114) (245) (1,345) (2,551) --**
-------- -------- -------- -------- --------
Net increase/(decrease) 37 81 (998) (1,786) 25
======== ======== ======== ======== ========
Class C:
Sold 32 40 72 77 25
Issued as reinvestment of dividends -- -- -- -- --
Redeemed (2) (7) (10) (51) --**
-------- -------- -------- -------- --------
Net increase 30 33 62 26 25
======== ======== ======== ======== ========
Class I:
Sold 7,605 6,369 22,679 17,849 21,644
Issued as reinvestment of dividends 153 57 -- -- --
Redeemed (5) (1,069) (15) (1,249) --
-------- -------- -------- -------- --------
Net increase/(decrease) 7,753 5,357 22,664 16,600 21,644
======== ======== ======== ======== ========
Small Cap International
Growth Fund++ Growth Fund
---------------------------- --------------------------
Six Months Six Months
Ended Ended
04/30/04 Year Ended 04/30/04 Year Ended
(unaudited) 10/31/03 (unaudited) 10/31/03
----------- ---------- ----------- ----------
AMOUNT
Class A:
Sold $ 27,192 $ 24,009 $ 11,785 $ 24,133
Issued as reinvestment of dividends -- -- 245 129
Redeemed (10,649) (15,495) (4,982) (24,295)
--------- -------- -------- --------
Net increase/(decrease) $ 16,543 $ 8,514 $ 7,048 $ (33)
========= ======== ======== ========
Class B:
Sold $ 3,206 $ 2,742 $ 1,013 $ 498
Issued as reinvestment of dividends -- -- -- --
Redeemed (5,453) (5,935) (1,187) (2,002)
--------- -------- -------- --------
Net increase/(decrease) $ (2,247) $ (3,193) $ (174) $ (1,504)
========= ======== ======== ========
Class C:
Sold $ 756 $ 253 $ 436 $ 46
Issued as reinvestment of dividends -- -- 1 --*
Redeemed (149) (7) (190) (22)
--------- -------- -------- --------
Net increase $ 607 $ 246 $ 247 $ 24
========= ======== ======== ========
Class I:
Sold $ 7,129 $ 94,896 $103,253 $ 75,087
Issued as reinvestment of dividends -- -- 4,799 2,398
Redeemed (159,633) (2,110) -- (419)
--------- -------- -------- --------
Net increase/(decrease) $(152,504) $ 92,786 $108,052 $ 77,066
========= ======== ======== ========
SHARES
Class A:
Sold 1,851 2,424 1,313 3,439
Issued as reinvestment of dividends -- -- 29 19
Redeemed (721) (1,609) (556) (3,460)
--------- -------- -------- --------
Net increase/(decrease) 1,130 815 786 (2)
========= ======== ======== ========
Class B:
Sold 247 284 117 71
Issued as reinvestment of dividends -- -- -- --
Redeemed (418) (700) (136) (298)
--------- -------- -------- --------
Net increase/(decrease) (171) (416) (19) (227)
========= ======== ======== ========
Class C:
Sold 57 25 50 6
Issued as reinvestment of dividends -- -- -- --**
Redeemed (11) (1) (20) (3)
--------- -------- -------- --------
Net increase 46 24 30 3
========= ======== ======== ========
Class I:
Sold 463 9,921 11,509 10,121
Issued as reinvestment of dividends -- -- 563 353
Redeemed (10,696) (201) -- (62)
--------- -------- -------- --------
Net increase/(decrease) (10,233) 9,720 12,072 10,412
========= ======== ======== ========
See Notes to Financial Statements.
65
statements of changes in net assets -- capital stock activity (continued)
WM GROUP OF FUNDS
(In thousands)
Short Term U.S. Government
Income Fund Securities Fund Income Fund
------------------------- ------------------------ --------------------------
Six Months Six Months Six Months
Ended Ended Ended
04/30/04 Year Ended 04/30/04 Year Ended 04/30/04 Year Ended
(unaudited) 10/31/03 (unaudited) 10/31/03 (unaudited) 10/31/03
---------- ---------- ----------- ---------- ----------- ----------
AMOUNT
Class A:
Sold $ 17,114 $ 71,736 $ 9,733 $ 69,243 $ 22,533 $ 60,366
Issued as reinvestment of dividends 745 1,216 2,616 6,886 2,641 5,763
Redeemed (31,937) (29,639) (33,763) (89,818) (25,090) (47,275)
-------- -------- -------- --------- -------- --------
Net increase/(decrease) $(14,078) $ 43,313 $(21,414) $ (13,689) $ 84 $ 18,854
======== ======== ======== ========= ======== ========
Class B:
Sold $ 4,184 $ 36,739 $ 4,574 $ 113,475 $ 12,967 $110,302
Issued as reinvestment of dividends 391 961 3,128 9,525 2,575 6,133
Redeemed (14,023) (18,507) (66,874) (134,451) (37,650) (69,133)
-------- -------- -------- --------- -------- --------
Net increase/(decrease) $ (9,448) $ 19,193 $(59,172) $ (11,451) $(22,108) $ 47,302
======== ======== ======== ========= ======== ========
Class C:
Sold $ 7,080 $ 20,332 $ 1,315 $ 18,299 $ 2,894 $ 15,209
Issued as reinvestment of dividends 167 297 150 498 226 493
Redeemed (7,330) (8,627) (5,371) (16,515) (5,195) (8,392)
-------- -------- -------- --------- -------- --------
Net increase/(decrease) $ (83) $ 12,002 $ (3,906) $ 2,282 $ (2,075) $ 7,310
======== ======== ======== ========= ======== ========
Class I:
Sold $ 23,137 $ 43,564 $402,442 $ 288,492 $ 88,627 $167,205
Issued as reinvestment of dividends 2,458 4,377 19,769 23,771 21,753 37,421
Redeemed -- (9,414) (270) (5,767) -- (31,691)
-------- -------- -------- --------- -------- --------
Net increase $ 25,595 $ 38,527 $421,941 $ 306,496 $110,380 $172,935
======== ======== ======== ========= ======== ========
SHARES
Class A:
Sold 7,136 29,949 890 6,234 2,373 6,421
Issued as reinvestment of dividends 310 508 240 622 279 617
Redeemed (13,324) (12,377) (3,093) (8,146) (2,650) (5,074)
-------- -------- -------- --------- -------- --------
Net increase/(decrease) (5,878) 18,080 (1,963) (1,290) 2 1,964
======== ======== ======== ========= ======== ========
Class B:
Sold 1,743 15,353 418 10,189 1,362 11,762
Issued as reinvestment of dividends 163 402 287 861 271 654
Redeemed (5,843) (7,735) (6,129) (12,238) (3,965) (7,403)
-------- -------- -------- --------- -------- --------
Net increase/(decrease) (3,937) 8,020 (5,424) (1,188) (2,332) 5,013
======== ======== ======== ========= ======== ========
Class C:
Sold 2,945 8,484 120 1,646 304 1,623
Issued as reinvestment of dividends 70 124 14 45 24 53
Redeemed (3,053) (3,601) (493) (1,503) (547) (899)
-------- -------- -------- --------- -------- --------
Net increase/(decrease) (38) 5,007 (359) 188 (219) 777
======== ======== ======== ========= ======== ========
Class I:
Sold 9,649 18,183 36,823 26,164 9,386 17,970
Issued as reinvestment of dividends 1,024 1,829 1,814 2,152 2,294 4,001
Redeemed -- (3,958) (25) (518) -- (3,401)
-------- -------- -------- --------- -------- --------
Net increase 10,673 16,054 38,612 27,798 11,680 18,570
======== ======== ======== ========= ======== ========
See Notes to Financial Statements.
66
High Yield Fund Tax-Exempt Bond Fund
-------------------------- --------------------------
Six Months Six Months
Ended Ended
04/30/04 Year Ended 04/30/04 Year Ended
(unaudited) 10/31/03 (unaudited) 10/31/03
----------- ---------- ----------- ----------
AMOUNT
Class A:
Sold $ 30,267 $ 82,999 $ 8,639 $ 37,452
Issued as reinvestment of dividends 1,122 1,486 4,890 7,653
Redeemed (15,090) (54,024) (22,189) (51,248)
-------- -------- -------- --------
Net increase/(decrease) $ 16,299 $ 30,461 $ (8,660) $ (6,143)
======== ======== ======== ========
Class B:
Sold $ 13,101 $ 45,952 $ 925 $ 12,667
Issued as reinvestment of dividends 1,278 2,344 897 1,402
Redeemed (17,221) (18,912) (6,369) (16,235)
-------- -------- -------- --------
Net increase/(decrease) $ (2,842) $ 29,384 $ (4,547) $ (2,166)
======== ======== ======== ========
Class C:
Sold $ 11,393 $ 22,849 $ 902 $ 3,001
Issued as reinvestment of dividends 517 494 100 118
Redeemed (6,776) (2,944) (1,280) (1,164)
-------- -------- -------- --------
Net increase/(decrease) $ 5,134 $ 20,399 $ (278) $ 1,955
======== ======== ======== ========
Class I:
Sold $ 54,510 $107,483 -- --
Issued as reinvestment of dividends 19,395 30,363 -- --
Redeemed -- (10,661) -- --
-------- --------
Net increase $ 73,905 $127,185 -- --
======== ========
SHARES
Class A:
Sold 3,691 11,040 1,083 4,702
Issued as reinvestment of dividends 137 198 616 962
Redeemed (1,841) (7,111) (2,788) (6,452)
-------- -------- -------- --------
Net increase/(decrease) 1,987 4,127 (1,089) (788)
======== ======== ======== ========
Class B:
Sold 1,595 6,182 116 1,587
Issued as reinvestment of dividends 156 313 113 176
Redeemed (2,091) (2,527) (798) (2,047)
-------- -------- -------- --------
Net increase/(decrease) (340) 3,968 (569) (284)
======== ======== ======== ========
Class C:
Sold 1,386 3,042 113 375
Issued as reinvestment of dividends 63 65 13 14
Redeemed (828) (389) (160) (146)
-------- -------- -------- --------
Net increase/(decrease) 621 2,718 (34) 243
======== ======== ======== ========
Class I:
Sold 6,772 14,436 -- --
Issued as reinvestment of dividends 2,374 4,104 -- --
Redeemed -- (1,513) -- --
-------- --------
Net increase 9,146 17,027 -- --
======== ========
California California Insured
Municipal Fund Intermediate Municipal Fund
------------------------- ---------------------------
Six Months Six Months
Ended Ended
04/30/04 Year Ended 04/30/04 Year Ended
(unaudited) 10/31/03 (unaudited) 10/31/03
----------- ---------- ----------- ----------
AMOUNT
Class A:
Sold $ 13,066 $ 40,491 $ 14,927 $ 57,345
Issued as reinvestment of dividends 3,321 8,684 1,402 1,916
Redeemed (25,761) (79,223) (12,024) (41,148)
-------- -------- -------- --------
Net increase/(decrease) $ (9,374) $(30,048) $ 4,305 $ 18,113
======== ======== ======== ========
Class B:
Sold $ 2,704 $ 32,825 $ 2,812 $ 32,897
Issued as reinvestment of dividends 2,897 8,456 1,494 2,258
Redeemed (34,813) (77,888) (15,296) (31,203)
-------- -------- -------- --------
Net increase/(decrease) $(29,212) $(36,607) $(10,990) $ 3,952
======== ======== ======== ========
Class C:
Sold $ 327 $ 5,866 $ 1,017 $ 7,940
Issued as reinvestment of dividends 98 279 160 238
Redeemed (2,410) (4,456) (1,880) (5,823)
-------- -------- -------- --------
Net increase/(decrease) $ (1,985) $ 1,689 $ (703) $ 2,355
======== ======== ======== ========
Class I:
Sold -- -- -- --
Issued as reinvestment of dividends -- -- -- --
Redeemed -- -- -- --
Net increase -- -- -- --
SHARES
Class A:
Sold 1,148 3,569 1,337 5,143
Issued as reinvestment of dividends 293 768 126 172
Redeemed (2,267) (7,049) (1,079) (3,713)
-------- -------- -------- --------
Net increase/(decrease) (826) (2,712) 384 1,602
======== ======== ======== ========
Class B:
Sold 239 2,891 252 2,949
Issued as reinvestment of dividends 255 748 135 203
Redeemed (3,066) (6,933) (1,371) (2,814)
-------- -------- -------- --------
Net increase/(decrease) (2,572) (3,294) (984) 338
======== ======== ======== ========
Class C:
Sold 29 516 91 712
Issued as reinvestment of dividends 9 25 14 21
Redeemed (214) (398) (168) (524)
-------- -------- -------- --------
Net increase/(decrease) (176) 143 (63) 209
======== ======== ======== ========
Class I:
Sold -- -- -- --
Issued as reinvestment of dividends -- -- -- --
Redeemed -- -- -- --
Net increase -- -- -- --
See Notes to Financial Statements.
67
financial highlights
For a Fund share outstanding throughout each period.
Income from Investment Operations
---------------------------------------------
Net Realized
Net Asset Value, and Unrealized Total from
Beginning of Net Investment Gain/(Loss) on Investment
Period Income Investments Operations
---------------- -------------- -------------- ----------
REIT FUND
Class A
04/30/04 (unaudited) $12.46 $0.19(6) $ 0.36 $0.55
10/31/03(3) 10.00 0.28(6) 2.35 2.63
Class B
04/30/04 (unaudited) 12.43 0.14(6) 0.36 0.50
10/31/03(3) 10.00 0.22(6) 2.35 2.57
Class C
04/30/04 (unaudited) 12.43 0.15(6) 0.36 0.51
10/31/03(3) 10.00 0.23(6) 2.35 2.58
Class I
04/30/04 (unaudited) 12.47 0.23(6) 0.36 0.59
10/31/03(3) 10.00 0.34(6) 2.32 2.66
EQUITY INCOME FUND
Class A
04/30/04 (unaudited) $15.46 $0.15(6) $ 1.39 $1.54
10/31/03 12.73 0.33(6) 2.73 3.06
10/31/02 14.85 0.40(6) (1.85) (1.45)
10/31/01 15.59 0.48(6) 0.37 0.85
10/31/00 14.60 0.49(6) 1.42 1.91
10/31/99 14.02 0.41 0.61 1.02
Class B
04/30/04 (unaudited) 15.36 0.07(6) 1.38 1.45
10/31/03 12.65 0.20(6) 2.71 2.91
10/31/02 14.78 0.27(6) (1.85) (1.58)
10/31/01 15.52 0.35(6) 0.38 0.73
10/31/00 14.53 0.37(6) 1.42 1.79
10/31/99 13.96 0.27 0.63 0.90
Class C
04/30/04 (unaudited) 15.29 0.08(6) 1.39 1.47
10/31/03 12.62 0.22(6) 2.68 2.90
10/31/02(4) 15.09 0.18(6) (2.43) (2.25)
Class I
04/30/04 (unaudited) 15.45 0.17(6) 1.40 1.57
10/31/03 12.73 0.38(6) 2.72 3.10
10/31/02 14.85 0.45(6) (1.85) (1.40)
10/31/01 15.59 0.54(6) 0.35 0.89
10/31/00(5) 14.47 0.11(6) 1.13 1.24
Less Distributions
--------------------------------------------
Distributions
Dividends from from
Net Investment Net Realized Total Net Asset Value,
Income Capital Gains Distributions End of Period
-------------- ------------- ------------- ----------------
REIT FUND
Class A
04/30/04 (unaudited) $(0.18) $(0.06) $(0.24) $12.77
10/31/03(3) (0.17) -- (0.17) 12.46
Class B
04/30/04 (unaudited) (0.13) (0.06) (0.19) 12.74
10/31/03(3) (0.14) -- (0.14) 12.43
Class C
04/30/04 (unaudited) (0.14) (0.06) (0.20) 12.74
10/31/03(3) (0.15) -- (0.15) 12.43
Class I
04/30/04 (unaudited) (0.21) (0.06) (0.27) 12.79
10/31/03(3) (0.19) -- (0.19) 12.47
EQUITY INCOME FUND
Class A
04/30/04 (unaudited) $(0.15) $ -- $(0.15) $16.85
10/31/03 (0.33) -- (0.33) 15.46
10/31/02 (0.35) (0.32) (0.67) 12.73
10/31/01 (0.46) (1.13) (1.59) 14.85
10/31/00 (0.48) (0.44) (0.92) 15.59
10/31/99 (0.40) (0.04) (0.44) 14.60
Class B
04/30/04 (unaudited) (0.07) -- (0.07) 16.74
10/31/03 (0.20) -- (0.20) 15.36
10/31/02 (0.23) (0.32) (0.55) 12.65
10/31/01 (0.34) (1.13) (1.47) 14.78
10/31/00 (0.36) (0.44) (0.80) 15.52
10/31/99 (0.29) (0.04) (0.33) 14.53
Class C
04/30/04 (unaudited) (0.10) -- (0.10) 16.66
10/31/03 (0.23) -- (0.23) 15.29
10/31/02(4) (0.22) -- (0.22) 12.62
Class I
04/30/04 (unaudited) (0.18) -- (0.18) 16.84
10/31/03 (0.38) -- (0.38) 15.45
10/31/02 (0.40) (0.32) (0.72) 12.73
10/31/01 (0.50) (1.13) (1.63) 14.85
10/31/00(5) (0.12) -- (0.12) 15.59
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
68
Ratios to Average Net Assets/Supplemental Data
-----------------------------------------------------------------------------------
Ratio of
Operating Expenses
to Average
Net Assets
Without Fee
Ratio of Ratio of Waivers, Expenses
Net Assets, Operating Net Investment Reimbursed and/or
End of Expenses to Income to Fees Reduced by
Total Period Average to Average Portfolio Credits Allowed by
Return(1) (in 000's) Net Assets Net Assets Turnover Rate the Custodian(2)
--------- ----------- ----------- -------------- ------------- ------------------
REIT FUND
Class A
04/30/04 (unaudited) 4.22% $ 5,366 1.34%(7) 2.86%(7) 0% 1.34%(7)
10/31/03(3) 26.43% 3,159 1.41%(7) 3.60%(7) 7% 1.41%(7)
Class B
04/30/04 (unaudited) 3.84% 4,066 2.08%(7) 2.12%(7) 0% 2.08%(7)
10/31/03(3) 25.86% 2,808 2.13%(7) 2.88%(7) 7% 2.13%(7)
Class C
04/30/04 (unaudited) 3.94% 2,540 1.99%(7) 2.21%(7) 0% 1.99%(7)
10/31/03(3) 25.88% 1,322 2.06%(7) 2.95%(7) 7% 2.06%(7)
Class I
04/30/04 (unaudited) 4.51% 229,003 0.87%(7) 3.33%(7) 0% 0.87%(7)
10/31/03(3) 26.76% 182,138 0.92%(7) 4.09%(7) 7% 0.92%(7)
EQUITY INCOME FUND
Class A
04/30/04 (unaudited) 10.01% $344,174 0.91%(7) 1.77%(7) 5% 0.91%(7)
10/31/03 24.43% 268,489 0.95% 2.43% 18% 0.95%
10/31/02 (10.35)% 198,756 0.97% 2.77% 16% 0.97%
10/31/01 5.92% 211,445 0.96% 3.17% 17% 0.97%
10/31/00 13.73% 191,850 1.05% 3.39% 84% 1.05%
10/31/99 7.36% 241,746 1.05% 2.61% 45% 1.05%
Class B
04/30/04 (unaudited) 9.54% 121,500 1.82%(7) 0.86%(7) 5% 1.82%(7)
10/31/03 23.19% 103,888 1.89% 1.49% 18% 1.89%
10/31/02 (11.20)% 82,330 1.88% 1.86% 16% 1.88%
10/31/01 5.09% 68,549 1.81% 2.32% 17% 1.82%
10/31/00 12.84% 47,386 1.85% 2.59% 84% 1.85%
10/31/99 6.46% 75,485 1.84% 1.82% 45% 1.84%
Class C
04/30/04 (unaudited) 9.56% 17,265 1.72%(7) 0.96%(7) 5% 1.72%(7)
10/31/03 23.29% 5,973 1.78% 1.60% 18% 1.78%
10/31/02(4) (15.07)% 1,780 1.80%(7) 1.94%(7) 16% 1.80%(7)
Class I
04/30/04 (unaudited) 10.21% 751,931 0.59%(7) 2.09%(7) 5% 0.59%(7)
10/31/03 24.77% 529,665 0.61% 2.77% 18% 0.61%
10/31/02 (10.04)% 350,185 0.63% 3.11% 16% 0.63%
10/31/01 6.26% 252,453 0.64% 3.49% 17% 0.65%
10/31/00(5) 8.63% 96,436 0.72%(7) 3.72%(7) 84% 0.72%(7)
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
69
financial highlights
For a Fund share outstanding throughout each period.
Income from Investment Operations
--------------------------------------------
Net Realized
Net Asset Value, and Unrealized Total from
Beginning of Net Investment Gain/(Loss) on Investment
Period Income/(Loss) Investments Operations
---------------- -------------- -------------- ----------
GROWTH & INCOME FUND
Class A
04/30/04 (unaudited) $21.59 $ 0.11(6) $ 1.92 $ 2.03
10/31/03 18.44 0.22(6) 3.11 3.33
10/31/02 22.34 0.17(6) (3.68) (3.51)
10/31/01 27.11 0.10 (3.63) (3.53)
10/31/00 24.61 0.06 3.30 3.36
10/31/99 19.99 0.09(6) 4.62 4.71
Class B
04/30/04 (unaudited) 20.74 (0.00)(6)(9) 1.84 1.84
10/31/03 17.72 0.02(6) 3.00 3.02
10/31/02 21.67 (0.04)(6) (3.55) (3.59)
10/31/01 26.49 (0.13) (3.52) (3.65)
10/31/00 24.24 (0.17) 3.25 3.08
10/31/99 19.77 (0.09)(6) 4.56 4.47
Class C
04/30/04 (unaudited) 20.62 0.01(6) 1.82 1.83
10/31/03 17.73 0.03(6) 2.98 3.01
10/31/02(4) 21.36 (0.01)(6) (3.62) (3.63)
Class I
04/30/04 (unaudited) 21.68 0.15(6) 1.92 2.07
10/31/03 18.52 0.29(6) 3.12 3.41
10/31/02 22.39 0.24(6) (3.70) (3.46)
10/31/01 27.16 0.18 (3.64) (3.46)
10/31/00 24.65 0.14 3.31 3.45
10/31/99 20.03 0.16(6) 4.61 4.77
WEST COAST EQUITY FUND
Class A
04/30/04 (unaudited) $32.14 $ 0.03(6) $ 1.31 $ 1.34
10/31/03 23.73 0.04(6) 8.37 8.41
10/31/02 28.89 0.02(6) (4.09) (4.07)
10/31/01 36.23 0.11 (2.35) (2.24)
10/31/00 32.04 0.10(6) 8.22 8.32
10/31/99 20.37 (0.05) 11.72 11.67
Class B
04/30/04 (unaudited) 29.14 (0.12)(6) 1.20 1.08
10/31/03 21.73 (0.20)(6) 7.61 7.41
10/31/02 26.71 (0.23)(6) (3.73) (3.96)
10/31/01 34.12 (0.15) (2.19) (2.34)
10/31/00 30.63 (0.19)(6) 7.81 7.62
10/31/99 19.64 (0.25) 11.24 10.99
Class C
04/30/04 (unaudited) 29.20 (0.11)(6) 1.20 1.09
10/31/03 21.74 (0.18)(6) 7.64 7.46
10/31/02(4) 27.59 (0.14)(6) (5.71) (5.85)
Class I
04/30/04 (unaudited) 32.39 0.08(6) 1.33 1.41
10/31/03 23.83 0.13(6) 8.43 8.56
10/31/02 29.00 0.12(6) (4.10) (3.98)
10/31/01 36.34 0.20 (2.34) (2.14)
10/31/00 32.04 0.22(6) 8.21 8.43
10/31/99(8) 29.72 0.01 2.31 2.32
Less Distributions
--------------------------------------------
Distributions
Dividends from from
Net Investment Net Realized Total Net Asset Value,
Income Capital Gains Distributions End of Period
-------------- ------------- ------------- ----------------
GROWTH & INCOME FUND
Class A
04/30/04 (unaudited) $(0.21) $ -- $(0.21) $23.41
10/31/03 (0.18) -- (0.18) 21.59
10/31/02 (0.03) (0.36) (0.39) 18.44
10/31/01 (0.07) (1.17) (1.24) 22.34
10/31/00 (0.03) (0.83) (0.86) 27.11
10/31/99 (0.09) (0.00)(9) (0.09) 24.61
Class B
04/30/04 (unaudited) -- -- -- 22.58
10/31/03 -- -- -- 20.74
10/31/02 (0.00)(9) (0.36) (0.36) 17.72
10/31/01 -- (1.17) (1.17) 21.67
10/31/00 -- (0.83) (0.83) 26.49
10/31/99 -- -- -- 24.24
Class C
04/30/04 (unaudited) (0.13) -- (0.13) 22.32
10/31/03 (0.12) -- (0.12) 20.62
10/31/02(4) -- -- -- 17.73
Class I
04/30/04 (unaudited) (0.28) -- (0.28) 23.47
10/31/03 (0.25) -- (0.25) 21.68
10/31/02 (0.05) (0.36) (0.41) 18.52
10/31/01 (0.14) (1.17) (1.31) 22.39
10/31/00 (0.11) (0.83) (0.94) 27.16
10/31/99 (0.15) (0.00)(9) (0.15) 24.65
WEST COAST EQUITY FUND
Class A
04/30/04 (unaudited) $ -- $ -- $ -- $33.48
10/31/03 -- -- -- 32.14
10/31/02 (0.07) (1.02) (1.09) 23.73
10/31/01 (0.03) (5.07) (5.10) 28.89
10/31/00 -- (4.13) (4.13) 36.23
10/31/99 -- -- -- 32.04
Class B
04/30/04 (unaudited) -- -- -- 30.22
10/31/03 -- -- -- 29.14
10/31/02 (0.00)(9) (1.02) (1.02) 21.73
10/31/01 -- (5.07) (5.07) 26.71
10/31/00 -- (4.13) (4.13) 34.12
10/31/99 -- -- -- 30.63
Class C
04/30/04 (unaudited) -- -- -- 30.29
10/31/03 -- -- -- 29.20
10/31/02(4) -- -- -- 21.74
Class I
04/30/04 (unaudited) (0.04) -- (0.04) 33.76
10/31/03 -- -- -- 32.39
10/31/02 (0.17) (1.02) (1.19) 23.83
10/31/01 (0.13) (5.07) (5.20) 29.00
10/31/00 -- (4.13) (4.13) 36.34
10/31/99(8) -- -- -- 32.04
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
70
Ratios to Average Net Assets/Supplemental Data
-----------------------------------------------------------------------------------
Ratio of
Operating Expenses
to Average
Net Assets
Without Fee
Ratio of Ratio of Waivers, Expenses
Net Assets, Operating Net Investment Reimbursed and/or
End of Expenses to Income/(Loss) Fees Reduced by
Total Period Average to Average Portfolio Credits Allowed by
Return(1) (in 000's) Net Assets Net Assets Turnover Rate the Custodian(2)
--------- ----------- ----------- -------------- ------------- ------------------
GROWTH & INCOME FUND
Class A
04/30/04 (unaudited) 9.41% $ 599,996 0.90%(7) 0.98%(7) 3% 0.90%(7)
10/31/03 18.18% 541,707 0.93% 1.12% 17% 0.93%
10/31/02 (16.10)% 475,010 0.94% 0.79% 22% 0.94%
10/31/01 (13.40)% 560,226 0.92% 0.40% 35% 0.92%
10/31/00 13.95% 662,086 0.94% 0.21% 35% 0.94%
10/31/99 23.57% 705,835 1.00% 0.37% 47% 1.00%
Class B
04/30/04 (unaudited) 8.92% 108,410 1.90%(7) (0.02)%(7) 3% 1.90%(7)
10/31/03 16.99% 115,457 1.96% 0.09% 17% 1.96%
10/31/02 (16.94)% 123,423 1.91% (0.18)% 22% 1.91%
10/31/01 (14.20)% 186,247 1.82% (0.50)% 35% 1.82%
10/31/00 13.01% 242,611 1.78% (0.63)% 35% 1.78%
10/31/99 22.61% 233,216 1.76% (0.39)% 47% 1.84%
Class C
04/30/04 (unaudited) 8.93% 1,421 1.84%(7) 0.04%(7) 3% 1.84%(7)
10/31/03 17.08% 823 1.89% 0.16% 17% 1.89%
10/31/02(4) (17.00)% 264 1.83%(7) (0.10)%(7) 22% 1.83%(7)
Class I
04/30/04 (unaudited) 9.61% 1,241,907 0.57%(7) 1.31%(7) 3% 0.57%(7)
10/31/03 18.61% 895,547 0.59% 1.46% 17% 0.59%
10/31/02 (15.84)% 671,191 0.60% 1.13% 22% 0.60%
10/31/01 (13.12)% 768,550 0.58% 0.74% 35% 0.58%
10/31/00 14.35% 725,241 0.60% 0.55% 35% 0.60%
10/31/99 23.87% 461,629 0.67% 0.70% 47% 0.67%
WEST COAST EQUITY FUND
Class A
04/30/04 (unaudited) 4.17% $ 588,069 0.95%(7) 0.16%(7) 8% 0.95%(7)
10/31/03 35.44% 523,308 1.02% 0.14% 14% 1.02%
10/31/02 (14.94)% 375,821 1.05% 0.07% 16% 1.05%
10/31/01 (6.55)% 427,215 1.01% 0.38% 27% 1.01%
10/31/00 28.73% 442,253 1.02% 0.27% 42% 1.02%
10/31/99 57.29% 338,980 1.15% (0.21)% 41% 1.15%
Class B
04/30/04 (unaudited) 3.67% 132,798 1.90%(7) (0.79)%(7) 8% 1.90%(7)
10/31/03 34.10% 122,221 2.01% (0.85)% 14% 2.01%
10/31/02 (15.73)% 102,208 2.00% (0.88)% 16% 2.00%
10/31/01 (7.40)% 109,655 1.89% (0.50)% 27% 1.89%
10/31/00 27.67% 116,672 1.84% (0.55)% 42% 1.84%
10/31/99 55.96% 77,658 1.99% (1.05)% 41% 1.99%
Class C
04/30/04 (unaudited) 3.73% 6,741 1.80%(7) (0.69)%(7) 8% 1.80%(7)
10/31/03 34.27% 3,593 1.90% (0.74)% 14% 1.90%
10/31/02(4) (21.20)% 1,341 1.96%(7) (0.84)%(7) 16% 1.96%(7)
Class I
04/30/04 (unaudited) 4.35% 438,149 0.62%(7) 0.49%(7) 8% 0.62%(7)
10/31/03 35.92% 349,363 0.67% 0.49% 14% 0.67%
10/31/02 (14.65)% 195,029 0.70% 0.42% 16% 0.70%
10/31/01 (6.22)% 176,303 0.68% 0.71% 27% 0.68%
10/31/00 29.11% 148,954 0.70% 0.59% 42% 0.70%
10/31/99(8) 7.81% 6,102 0.81%(7) 0.13%(7) 41% 0.81%(7)
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
71
financial highlights
For a Fund share outstanding throughout each period.
Income from Investment Operations
--------------------------------------------
Net Realized
Net Asset Value, and Unrealized Total from
Beginning of Net Investment Gain/(Loss) on Investment
Period Income/(Loss) Investments Operations
---------------- -------------- -------------- ----------
MID CAP STOCK FUND
Class A
04/30/04 (unaudited) $15.34 $ 0.01(6) $ 1.22 $ 1.23
10/31/03 12.39 0.01(6) 2.94 2.95
10/31/02 13.50 (0.01)(6) (0.60) (0.61)
10/31/01 12.58 (0.03)(6) 1.00 0.97
10/31/00(10) 10.00 (0.02)(6) 2.60 2.58
Class B
04/30/04 (unaudited) 14.82 (0.07)(6) 1.18 1.11
10/31/03 12.09 (0.13)(6) 2.86 2.73
10/31/02 13.31 (0.15)(6) (0.57) (0.72)
10/31/01 12.51 (0.15)(6) 1.00 0.85
10/31/00(10) 10.00 (0.08)(6) 2.59 2.51
Class C
04/30/04 (unaudited) 14.83 (0.07)(6) 1.19 1.12
10/31/03 12.10 (0.12)(6) 2.85 2.73
10/31/02(4) 13.60 (0.10)(6) (1.40) (1.50)
Class I
04/30/04 (unaudited) 15.50 0.03(6) 1.25 1.28
10/31/03 12.51 0.06(6) 2.97 3.03
10/31/02 13.59 0.04(6) (0.60) (0.56)
10/31/01 12.62 0.04(6) 1.00 1.04
10/31/00(10) 10.00 0.02(6) 2.60 2.62
GROWTH FUND
Class A
04/30/04 (unaudited) $13.71 $(0.04)(6) $ 0.56 $ 0.52
10/31/03 11.47 (0.08)(6) 2.32 2.24
10/31/02 15.23 (0.10)(6) (3.66) (3.76)
10/31/01 32.78 (0.09)(6) (13.13) (13.22)
10/31/00 29.71 (0.14)(6) 7.04 6.90
10/31/99 17.64 (0.21)(6) 14.11 13.90
Class B
04/30/04 (unaudited) 12.49 (0.09)(6) 0.51 0.42
10/31/03 10.55 (0.18)(6) 2.12 1.94
10/31/02 14.13 (0.21)(6) (3.37) (3.58)
10/31/01 30.78 (0.24)(6) (12.24) (12.48)
10/31/00 28.29 (0.38)(6) 6.70 6.32
10/31/99 16.99 (0.38)(6) 13.51 13.13
Class C
04/30/04 (unaudited) 12.55 (0.08)(6) 0.52 0.44
10/31/03 10.56 (0.14)(6) 2.13 1.99
10/31/02(4) 13.48 (0.11)(6) (2.81) (2.92)
Class I
04/30/04 (unaudited) 14.13 0.01(6) 0.57 0.58
10/31/03 11.74 0.00(6)(9) 2.39 2.39
10/31/02 15.48 (0.01)(6) (3.73) (3.74)
10/31/01 33.23 0.02(6) (13.31) (13.29)
10/31/00 29.96 0.01(6) 7.09 7.10
10/31/99 17.76 (0.11)(6) 14.14 14.03
Less Distributions
--------------------------------------------
Distributions
Dividends from from
Net Investment Net Realized Total Net Asset Value,
Income Capital Gains Distributions End of Period
-------------- ------------- ------------- ----------------
MID CAP STOCK FUND
Class A
04/30/04 (unaudited) $(0.01) $(0.04) $(0.05) $16.52
10/31/03 -- -- -- 15.34
10/31/02 -- (0.50) (0.50) 12.39
10/31/01 -- (0.05) (0.05) 13.50
10/31/00(10) -- -- -- 12.58
Class B
04/30/04 (unaudited) -- (0.04) (0.04) 15.89
10/31/03 -- -- -- 14.82
10/31/02 -- (0.50) (0.50) 12.09
10/31/01 -- (0.05) (0.05) 13.31
10/31/00(10) -- -- -- 12.51
Class C
04/30/04 (unaudited) -- (0.04) (0.04) 15.91
10/31/03 -- -- -- 14.83
10/31/02(4) -- -- -- 12.10
Class I
04/30/04 (unaudited) (0.06) (0.04) (0.10) 16.68
10/31/03 (0.04) -- (0.04) 15.50
10/31/02 (0.02) (0.50) (0.52) 12.51
10/31/01 (0.02) (0.05) (0.07) 13.59
10/31/00(10) -- -- -- 12.62
GROWTH FUND
Class A
04/30/04 (unaudited) $ -- $ -- $ -- $14.23
10/31/03 -- -- -- 13.71
10/31/02 -- -- -- 11.47
10/31/01 (0.20) (4.13) (4.33) 15.23
10/31/00 -- (3.83) (3.83) 32.78
10/31/99 -- (1.83) (1.83) 29.71
Class B
04/30/04 (unaudited) -- -- -- 12.91
10/31/03 -- -- -- 12.49
10/31/02 -- -- -- 10.55
10/31/01 (0.04) (4.13) (4.17) 14.13
10/31/00 -- (3.83) (3.83) 30.78
10/31/99 -- (1.83) (1.83) 28.29
Class C
04/30/04 (unaudited) -- -- -- 12.99
10/31/03 -- -- -- 12.55
10/31/02(4) -- -- -- 10.56
Class I
04/30/04 (unaudited) -- -- -- 14.71
10/31/03 -- -- -- 14.13
10/31/02 -- -- -- 11.74
10/31/01 (0.33) (4.13) (4.46) 15.48
10/31/00 -- (3.83) (3.83) 33.23
10/31/99 -- (1.83) (1.83) 29.96
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
72
Ratios to Average Net Assets/Supplemental Data
-----------------------------------------------------------------------------------
Ratio of
Operating Expenses
to Average
Net Assets
Without Fee
Ratio of Ratio of Waivers, Expenses
Net Assets, Operating Net Investment Reimbursed and/or
End of Expenses to Income/(Loss) Fees Reduced by
Total Period Average to Average Portfolio Credits Allowed by
Return(1) (in 000's) Net Assets Net Assets Turnover Rate the Custodian(2)
--------- ----------- ----------- -------------- ------------- ------------------
MID CAP STOCK FUND
Class A
04/30/04 (unaudited) 8.04% $ 51,513 1.14%(7) 0.09%(7) 11% 1.14%(7)
10/31/03 23.81% 38,676 1.16% 0.07% 28% 1.16%
10/31/02 (4.86)% 28,248 1.25% (0.10)% 27% 1.25%
10/31/01 7.71% 6,165 1.36% (0.25)% 33% 1.36%
10/31/00(10) 25.80% 2,451 1.40%(7) (0.29)%(7) 9% 1.40%(7)
Class B
04/30/04 (unaudited) 7.56% 19,258 2.14%(7) (0.91)%(7) 11% 2.14%(7)
10/31/03 22.50% 17,405 2.24% (1.01)% 28% 2.24%
10/31/02 (5.79)% 13,229 2.26% (1.11)% 27% 2.26%
10/31/01 6.79% 10,271 2.17% (1.06)% 33% 2.17%
10/31/00(10) 25.10% 3,778 2.16%(7) (1.05)%(7) 9% 2.16%(7)
Class C
04/30/04 (unaudited) 7.55% 1,071 2.11%(7) (0.88)%(7) 11% 2.11%(7)
10/31/03 22.56% 550 2.15% (0.92)% 28% 2.15%
10/31/02(4) (11.03)% 55 2.24%(7) (1.09)%(7) 27% 2.24%(7)
Class I
04/30/04 (unaudited) 8.26% 527,194 0.80%(7) 0.43%(7) 11% 0.80%(7)
10/31/03 24.27% 369,772 0.81% 0.42% 28% 0.81%
10/31/02 (4.44)% 231,409 0.83% 0.32% 27% 0.83%
10/31/01 8.29% 220,052 0.81% 0.30% 33% 0.81%
10/31/00(10) 26.20% 176,653 0.88%(7) 0.23%(7) 9% 0.88%(7)
GROWTH FUND
Class A
04/30/04 (unaudited) 3.79% $ 124,935 1.46%(7) (0.51)%(7) 34% 1.46%(7)
10/31/03 19.53% 114,757 1.62% (0.66)% 71% 1.62%
10/31/02 (24.69)% 94,848 1.69% (0.74)% 170% 1.69%
10/31/01 (45.77)% 151,893 1.52% (0.43)% 99% 1.52%
10/31/00 24.21% 341,777 1.30% (0.39)% 92% 1.36%
10/31/99 84.96% 240,363 1.27% (0.84)% 119% 1.46%
Class B
04/30/04 (unaudited) 3.36% 120,723 2.37%(7) (1.42)%(7) 34% 2.37%(7)
10/31/03 18.39% 129,239 2.54% (1.58)% 71% 2.54%
10/31/02 (25.34)% 128,007 2.54% (1.59)% 170% 2.54%
10/31/01 (46.19)% 220,108 2.31% (1.22)% 99% 2.31%
10/31/00 23.28% 481,935 2.05% (1.14)% 92% 2.11%
10/31/99 83.57% 226,507 2.03% (1.60)% 119% 2.25%
Class C
04/30/04 (unaudited) 3.51% 1,387 2.14%(7) (1.19)%(7) 34% 2.14%(7)
10/31/03 18.85% 565 2.19% (1.23)% 71% 2.19%
10/31/02(4) (21.66)% 199 2.38%(7) (1.43)%(7) 170% 2.38%(7)
Class I
04/30/04 (unaudited) 4.18% 1,025,434 0.86%(7) 0.09%(7) 34% 0.86%(7)
10/31/03 20.27% 664,334 0.92% 0.04% 71% 0.92%
10/31/02 (24.16)% 357,296 1.03% (0.08)% 170% 1.03%
10/31/01 (45.50)% 203,646 1.00% 0.09% 99% 1.00%
10/31/00 24.73% 399,028 0.90% 0.01% 92% 0.96%
10/31/99 85.13% 386,367 0.87% (0.44)% 119% 1.06%
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
73
financial highlights
For a Fund share outstanding throughout each period.
Income from Investment Operations
---------------------------------------------
Net Realized
Net Asset Value, and Unrealized Total from
Beginning of Net Investment Gain/(Loss) on Investment
Period Income/(Loss) Investments Operations
---------------- -------------- -------------- -----------
SMALL CAP VALUE FUND
Class A
04/30/04(11) (unaudited) $10.00 $ 0.02(6) $(0.33) $(0.31)
Class B
04/30/04(11) (unaudited) 10.00 0.01(6) (0.33) (0.32)
Class C
04/30/04(11) (unaudited) 10.00 0.01(6) (0.32) (0.31)
Class I
04/30/04(11) (unaudited) 10.00 0.04(6) (0.34) (0.30)
SMALL CAP GROWTH FUND(14)
Class A
04/30/04 (unaudited) $13.42 $(0.07)(6) $ 0.61 $ 0.54
10/31/03 8.21 (0.09)(6) 5.30 5.21
10/31/02 13.60 (0.14)(6) (4.28) (4.42)
10/31/01 26.67 (0.20) (9.56) (9.76)
10/31/00 19.61 (0.27)(6) 10.01 9.74
10/31/99 16.25 (0.20)(6) 6.36 6.16
Class B
04/30/04 (unaudited) 11.96 (0.13)(6) 0.54 0.41
10/31/03 7.40 (0.18)(6) 4.74 4.56
10/31/02 12.46 (0.23)(6) (3.86) (4.09)
10/31/01 24.93 (0.32) (8.84) (9.16)
10/31/00 18.61 (0.47)(6) 9.47 9.00
10/31/99 15.67 (0.34)(6) 6.08 5.74
Class C
04/30/04 (unaudited) 12.06 (0.11)(6) 0.55 0.44
10/31/03 7.42 (0.14)(6) 4.78 4.64
10/31/02(4) 11.51 (0.10)(6) (3.99) (4.09)
Class I
04/30/04 (unaudited) 13.76 (0.03)(6) 0.61 0.58
10/31/03 8.35 (0.02)(6) 5.43 5.41
10/31/02 13.74 (0.06)(6) (4.36) (4.42)
10/31/01 26.77 (0.06) (9.66) (9.72)
10/31/00(12) 24.98 (0.15)(6) 1.94 1.79
Less Distributions
--------------------------------------------
Distributions
Dividends from from
Net Investment Net Realized Total Net Asset Value,
Income Capital Gains Distributions End of Period
-------------- ------------- ------------- ----------------
SMALL CAP VALUE FUND
Class A
04/30/04(11) (unaudited) $ -- $ -- $ -- $ 9.69
Class B
04/30/04(11) (unaudited) -- -- -- 9.68
Class C
04/30/04(11) (unaudited) -- -- -- 9.69
Class I
04/30/04(11) (unaudited) -- -- -- 9.70
SMALL CAP GROWTH FUND(14)
Class A
04/30/04 (unaudited) $ -- $ -- $ -- $13.96
10/31/03 -- -- -- 13.42
10/31/02 -- (0.97) (0.97) 8.21
10/31/01 -- (3.31) (3.31) 13.60
10/31/00 -- (2.68) (2.68) 26.67
10/31/99 -- (2.80) (2.80) 19.61
Class B
04/30/04 (unaudited) -- -- -- 12.37
10/31/03 -- -- -- 11.96
10/31/02 -- (0.97) (0.97) 7.40
10/31/01 -- (3.31) (3.31) 12.46
10/31/00 -- (2.68) (2.68) 24.93
10/31/99 -- (2.80) (2.80) 18.61
Class C
04/30/04 (unaudited) -- -- -- 12.50
10/31/03 -- -- -- 12.06
10/31/02(4) -- -- -- 7.42
Class I
04/30/04 (unaudited) -- -- -- 14.34
10/31/03 -- -- -- 13.76
10/31/02 -- (0.97) (0.97) 8.35
10/31/01 -- (3.31) (3.31) 13.74
10/31/00(12) -- -- -- 26.77
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
74
Ratios to Average Net Assets/Supplemental Data
-----------------------------------------------------------------------------------
Ratio of
Operating Expenses
to Average
Net Assets
Without Fee
Ratio of Ratio of Waivers, Expenses
Net Assets, Operating Net Investment Reimbursed and/or
End of Expenses to Income/(Loss) Fees Reduced by
Total Period Average to Average Portfolio Credits Allowed by
Return(1) (in 000's) Net Assets Net Assets Turnover Rate the Custodian(2)
--------- ----------- ----------- -------------- ------------- ------------------
SMALL CAP VALUE FUND
Class A
04/30/04(11) (unaudited) (3.10)% $ 1,404 1.53%(7) 1.42%(7) 8% 1.53%(7)
Class B
04/30/04(11) (unaudited) (3.20)% 238 2.26%(7) 0.69%(7) 8% 2.26%(7)
Class C
04/30/04(11) (unaudited) (3.20)% 243 2.26%(7) 0.69%(7) 8% 2.26%(7)
Class I
04/30/04(11) (unaudited) (3.00)% 209,850 0.99%(7) 1.96%(7) 8% 0.99%(7)
SMALL CAP GROWTH FUND(14)
Class A
04/30/04 (unaudited) 4.02% $100,246 1.43%(7) (0.96)%(7) 26% 1.43%(7)
10/31/03 63.46% 81,234 1.64% (0.86)% 40% 1.64%
10/31/02 (35.71)% 42,984 1.68% (1.20)% 21% 1.68%
10/31/01 (40.84)% 66,262 1.52% (1.03)% 46% 1.52%
10/31/00 53.57% 132,274 1.42% (0.96)% 49% 1.43%
10/31/99 42.60% 92,130 1.78% (1.16)% 45% 1.94%
Class B
04/30/04 (unaudited) 3.43% 16,541 2.50%(7) (2.03)%(7) 26% 2.50%(7)
10/31/03 61.62% 18,037 2.81% (2.03)% 40% 2.81%
10/31/02 (36.36)% 14,238 2.64% (2.16)% 21% 2.64%
10/31/01 (41.35)% 29,346 2.42% (1.93)% 46% 2.42%
10/31/00 52.34% 54,407 2.24% (1.78)% 49% 2.25%
10/31/99 41.32% 28,969 2.70% (2.08)% 45% 2.86%
Class C
04/30/04 (unaudited) 3.57% 995 2.18%(7) (1.71)%(7) 26% 2.18%(7)
10/31/03 62.53% 404 2.28% (1.50)% 40% 2.28%
10/31/02(4) (35.53)% 69 2.25%(7) (1.77)%(7) 21% 2.25%(7)
Class I
04/30/04 (unaudited) 4.29% 204,861 0.93%(7) (0.46)%(7) 26% 0.93%(7)
10/31/03 64.67% 337,271 0.96% (0.18)% 40% 0.96%
10/31/02 (35.32)% 123,620 1.00% (0.52)% 21% 1.00%
10/31/01 (40.49)% 134,462 0.97% (0.48)% 46% 0.97%
10/31/00(12) 7.21% 150,073 0.98%(7) (0.52)%(7) 49% 0.99%(7)
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
75
financial highlights
For a Fund share outstanding throughout each period.
Income from Investment Operations
--------------------------------------------
Net Realized
Net Asset Value, and Unrealized Total from
Beginning of Net Investment Gain/(Loss) on Investment
Period Income/(Loss) Investments Operations
---------------- -------------- -------------- ----------
INTERNATIONAL GROWTH FUND
Class A
04/30/04 (unaudited) $8.38 $ 0.02(6) $ 0.61 $0.63
10/31/03 6.76 0.03(6) 1.63 1.66
10/31/02 7.61 (0.02)(6) (0.75) (0.77)
10/31/01 10.97 (0.02) (2.67) (2.69)
10/31/00 11.14 (0.03)(6) 0.00(9) (0.03)
10/31/99 8.86 0.01(6) 2.65 2.66
Class B
04/30/04 (unaudited) 8.03 (0.03)(6) 0.59 0.56
10/31/03 6.51 (0.05)(6) 1.57 1.52
10/31/02 7.35 (0.09)(6) (0.73) (0.82)
10/31/01 10.70 (0.10) (2.58) (2.68)
10/31/00 10.87 (0.12)(6) 0.02 (0.10)
10/31/99 8.72 (0.08)(6) 2.60 2.52
Class C
04/30/04 (unaudited) 8.02 (0.01)(6) 0.59 0.58
10/31/03 6.53 (0.03)(6) 1.56 1.53
10/31/02(4) 7.55 (0.05)(6) (0.96) (1.01)
Class I
04/30/04 (unaudited) 8.43 0.05(6) 0.60 0.65
10/31/03 6.80 0.08(6) 1.64 1.72
10/31/02 7.69 0.04(6) (0.75) (0.71)
10/31/01 11.00 0.04 (2.68) (2.64)
10/31/00 11.16 0.05(6) 0.00(9) 0.05
10/31/99 8.83 0.07(6) 2.65 2.72
SHORT TERM INCOME FUND
Class A
04/30/04 (unaudited) $2.39 $ 0.04 $(0.01) $0.03
10/31/03 2.34 0.09 0.06 0.15
10/31/02 2.41 0.12 (0.07) 0.05
10/31/01 2.29 0.13 0.12 0.25
10/31/00 2.29 0.13 (0.00)(9) 0.13
10/31/99 2.35 0.13(6) (0.06) 0.07
Class B
04/30/04 (unaudited) 2.39 0.03 (0.01) 0.02
10/31/03 2.34 0.07 0.06 0.13
10/31/02 2.41 0.10 (0.07) 0.03
10/31/01 2.29 0.12 0.12 0.24
10/31/00 2.29 0.11 (0.00)(9) 0.11
10/31/99 2.35 0.10(6) (0.06) 0.04
Class C
04/30/04 (unaudited) 2.39 0.03 (0.01) 0.02
10/31/03 2.34 0.07 0.06 0.13
10/31/02(4) 2.37 0.07 (0.03) 0.04
Class I
04/30/04 (unaudited) 2.39 0.04 (0.01) 0.03
10/31/03 2.34 0.09 0.06 0.15
10/31/02 2.41 0.13 (0.07) 0.06
10/31/01 2.29 0.15 0.12 0.27
10/31/00 2.29 0.14 (0.00)(9) 0.14
10/31/99 2.35 0.13(6) (0.06) 0.07
Less Distributions
--------------------------------------------
Distributions
Dividends from from
Net Investment Net Realized Total Redemption Net Asset Value,
Income Capital Gains Distributions Fees End of Period
-------------- ------------- ------------- ---------- ----------------
INTERNATIONAL GROWTH FUND
Class A
04/30/04 (unaudited) $(0.08) $ -- $(0.08) $0.00(9) $ 8.93
10/31/03 (0.04) -- (0.04) 0.00(9) 8.38
10/31/02 (0.08) -- (0.08) 0.00(9) 6.76
10/31/01 (0.01) (0.66) (0.67) -- 7.61
10/31/00 (0.14) (0.00)(9) (0.14) -- 10.97
10/31/99 (0.27) (0.11) (0.38) -- 11.14
Class B
04/30/04 (unaudited) -- -- -- 0.00(9) 8.59
10/31/03 -- -- -- 0.00(9) 8.03
10/31/02 (0.02) -- (0.02) 0.00(9) 6.51
10/31/01 (0.01) (0.66) (0.67) -- 7.35
10/31/00 (0.07) (0.00)(9) (0.07) -- 10.70
10/31/99 (0.26) (0.11) (0.37) -- 10.87
Class C
04/30/04 (unaudited) (0.07) -- (0.07) 0.00(9) 8.53
10/31/03 (0.04) -- (0.04) 0.00(9) 8.02
10/31/02(4) (0.01) -- (0.01) 0.00(9) 6.53
Class I
04/30/04 (unaudited) (0.12) -- (0.12) 0.00(9) 8.96
10/31/03 (0.09) -- (0.09) 0.00(9) 8.43
10/31/02 (0.18) -- (0.18) 0.00(9) 6.80
10/31/01 (0.01) (0.66) (0.67) -- 7.69
10/31/00 (0.21) (0.00)(9) (0.21) -- 11.00
10/31/99 (0.28) (0.11) (0.39) -- 11.16
SHORT TERM INCOME FUND
Class A
04/30/04 (unaudited) $(0.04) $ -- $(0.04) $ -- $ 2.38
10/31/03 (0.10) -- (0.10) -- 2.39
10/31/02 (0.12) -- (0.12) -- 2.34
10/31/01 (0.13) -- (0.13) -- 2.41
10/31/00 (0.13) -- (0.13) -- 2.29
10/31/99 (0.13) -- (0.13) -- 2.29
Class B
04/30/04 (unaudited) (0.03) -- (0.03) -- 2.38
10/31/03 (0.08) -- (0.08) -- 2.39
10/31/02 (0.10) -- (0.10) -- 2.34
10/31/01 (0.12) -- (0.12) -- 2.41
10/31/00 (0.11) -- (0.11) -- 2.29
10/31/99 (0.10) -- (0.10) -- 2.29
Class C
04/30/04 (unaudited) (0.03) -- (0.03) -- 2.38
10/31/03 (0.08) -- (0.08) -- 2.39
10/31/02(4) (0.07) -- (0.07) -- 2.34
Class I
04/30/04 (unaudited) (0.04) -- (0.04) -- 2.38
10/31/03 (0.10) -- (0.10) -- 2.39
10/31/02 (0.13) -- (0.13) -- 2.34
10/31/01 (0.15) -- (0.15) -- 2.41
10/31/00 (0.14) -- (0.14) -- 2.29
10/31/99 (0.13) -- (0.13) -- 2.29
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
76
Ratios to Average Net Assets/Supplemental Data
-----------------------------------------------------------------------------------
Ratio of
Operating Expenses
to Average
Net Assets
Without Fee
Ratio of Ratio of Waivers, Expenses
Net Assets, Operating Net Investment Reimbursed and/or
End of Expenses to Income/(Loss) Fees Reduced by
Total Period Average to Average Portfolio Credits Allowed by
Return(1) (in 000's) Net Assets Net Assets Turnover Rate the Custodian(2)
--------- ----------- ----------- -------------- ------------- ------------------
INTERNATIONAL GROWTH FUND
Class A
04/30/04 (unaudited) 7.52% $ 35,166 1.51%(7) 0.52%(7) 8% 1.51%(7)
10/31/03 24.75% 26,429 1.70% 0.47% 19% 1.70%
10/31/02 (10.36)% 21,317 1.93% (0.20)% 25% 1.93%
10/31/01 (25.99)% 16,636 1.93% (0.25)% 27% 1.93%
10/31/00 (0.43)% 28,997 1.78% (0.25)% 37% 1.78%
10/31/99 31.15% 28,618 1.88% 0.13% 164% 1.89%
Class B
04/30/04 (unaudited) 6.85% 4,131 2.66%(7) (0.63)%(7) 8% 2.66%(7)
10/31/03 23.35% 4,020 2.91% (0.74)% 19% 2.91%
10/31/02 (11.23)% 4,732 2.91% (1.18)% 25% 2.91%
10/31/01 (26.68)% 7,172 2.74% (1.06)% 27% 2.74%
10/31/00 (1.03)% 12,272 2.48% (0.95)% 37% 2.48%
10/31/99 29.87% 11,101 2.80% (0.79)% 164% 2.81%
Class C
04/30/04 (unaudited) 8.53% 346 2.35%(7) (0.32)%(7) 8% 2.35%(7)
10/31/03 23.57% 91 2.64% (0.47)% 19% 2.64%
10/31/02(4) (13.34)% 53 2.67%(7) (0.94)%(7) 25% 2.67%(7)
Class I
04/30/04 (unaudited) 7.77% 445,600 0.99%(7) 1.04%(7) 8% 0.99%(7)
10/31/03 25.56% 317,493 1.07% 1.10% 19% 1.07%
10/31/02 (9.61)% 185,137 1.19% 0.54% 25% 1.19%
10/31/01 (25.53)% 124,886 1.18% 0.50% 27% 1.18%
10/31/00 0.26% 145,176 1.14% 0.39% 37% 1.14%
10/31/99 31.98% 163,610 1.28% 0.73% 164% 1.29%
SHORT TERM INCOME FUND
Class A
04/30/04 (unaudited) 1.17% $57,553 0.82%(7) 3.24%(7) 4% 0.91%(7)
10/31/03 6.28% 71,920 0.84% 3.58% 33% 0.97%
10/31/02 2.18% 28,106 0.96% 5.03% 28% 1.09%
10/31/01 11.31% 18,929 0.83% 5.63% 27% 1.15%
10/31/00 (5.70)% 20,224 0.99% 5.55% 14% 1.29%
10/31/99 2.84% 27,059 0.82% 5.22% 85% 1.16%
Class B
04/30/04 (unaudited) 0.80% 34,711 1.57%(7) 2.49%(7) 4% 1.69%(7)
10/31/03 5.49% 44,310 1.59% 2.83% 33% 1.70%
10/31/02 1.41% 24,621 1.71% 4.28% 28% 1.77%
10/31/01 10.52% 6,595 1.54% 4.92% 27% 1.86%
10/31/00 5.12% 3,461 1.55% 4.99% 14% 1.85%
10/31/99 1.79% 4,597 1.60% 4.44% 85% 1.94%
Class C
04/30/04 (unaudited) 0.79% 17,661 1.57%(7) 2.49%(7) 4% 1.65%(7)
10/31/03 5.48% 17,843 1.59% 2.83% 33% 1.65%
10/31/02(4) 1.61% 5,743 1.68%(7) 4.31%(7) 28% 1.68%(7)
Class I
04/30/04 (unaudited) 1.30% 154,204 0.57%(7) 3.49%(7) 4% 0.57%(7)
10/31/03 6.55% 129,443 0.59% 3.83% 33% 0.59%
10/31/02 2.53% 89,210 0.61% 5.38% 28% 0.61%
10/31/01 11.93% 110,710 0.27% 6.19% 27% 0.59%
10/31/00 6.43% 93,741 0.30% 6.24% 14% 0.60%
10/31/99 2.93% 138,955 0.37% 5.67% 85% 0.71%
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
77
financial highlights
For a Fund share outstanding throughout each period.
Income from Investment Operations
--------------------------------------------
Net Realized
Net Asset Value, and Unrealized Total from Dividends from
Beginning of Net Investment Gain/(Loss) on Investment Net Investment Net Asset Value,
Period Income Investments Operations Income End of Period
---------------- -------------- -------------- ---------- -------------- ----------------
U.S. GOVERNMENT SECURITIES FUND
Class A
04/30/04 (unaudited) $10.89 $0.19 $(0.09) $0.10 $(0.23) $10.76
10/31/03 11.19 0.40(6) (0.19) 0.21 (0.51) 10.89
10/31/02 11.20 0.54 0.04 0.58 (0.59) 11.19
10/31/01 10.55 0.62 0.65 1.27 (0.62) 11.20
10/31/00 10.51 0.63 0.04 0.67 (0.63) 10.55
10/31/99 10.98 0.62 (0.47) 0.15 (0.62) 10.51
Class B
04/30/04 (unaudited) 10.88 0.15 (0.09) 0.06 (0.19) 10.75
10/31/03 11.18 0.32(6) (0.19) 0.13 (0.43) 10.88
10/31/02 11.19 0.46 0.03 0.50 (0.51) 11.18
10/31/01 10.54 0.54 0.65 1.19 (0.54) 11.19
10/31/00 10.50 0.56 0.04 0.60 (0.56) 10.54
10/31/99 10.97 0.54 (0.48) 0.06 (0.53) 10.50
Class C
04/30/04 (unaudited) 10.87 0.15 (0.09) 0.06 (0.19) 10.74
10/31/03 11.18 0.32(6) (0.20) 0.12 (0.43) 10.87
10/31/02(4) 11.00 0.33 0.18 0.51 (0.33) 11.18
Class I
04/30/04 (unaudited) 10.89 0.22 (0.09) 0.13 (0.26) 10.76
10/31/03 11.19 0.44(6) (0.19) 0.25 (0.55) 10.89
10/31/02 11.20 0.58 0.04 0.62 (0.63) 11.19
10/31/01 10.55 0.66 0.65 1.31 (0.66) 11.20
10/31/00 10.51 0.67 0.04 0.71 (0.67) 10.55
10/31/99 10.99 0.66 (0.51) 0.15 (0.63) 10.51
INCOME FUND
Class A
04/30/04 (unaudited) $ 9.35 $0.23 $(0.04) $0.19 $(0.25) $9.29
10/31/03 9.02 0.51 0.38 0.89 (0.56) 9.35
10/31/02 9.32 0.60 (0.28) 0.32 (0.62) 9.02
10/31/01 8.90 0.62 0.43 1.05 (0.63) 9.32
10/31/00 8.99 0.62 (0.09) 0.53 (0.62) 8.90
10/31/99 9.44 0.63 (0.45) 0.18 (0.63) 8.99
Class B
04/30/04 (unaudited) 9.37 0.20 (0.03) 0.17 (0.22) 9.32
10/31/03 9.04 0.44 0.38 0.82 (0.49) 9.37
10/31/02 9.35 0.54 (0.29) 0.25 (0.56) 9.04
10/31/01 8.92 0.56 0.44 1.00 (0.57) 9.35
10/31/00 9.00 0.56 (0.08) 0.48 (0.56) 8.92
10/31/99 9.45 0.56 (0.45) 0.11 (0.56) 9.00
Class C
04/30/04 (unaudited) 9.37 0.20 (0.03) 0.17 (0.22) 9.32
10/31/03 9.04 0.45 0.38 0.83 (0.50) 9.37
10/31/02(4) 9.21 0.37 (0.17) 0.20 (0.37) 9.04
Class I
04/30/04 (unaudited) 9.36 0.25 (0.03) 0.22 (0.27) 9.31
10/31/03 9.03 0.55 0.38 0.93 (0.60) 9.36
10/31/02 9.34 0.64 (0.29) 0.35 (0.66) 9.03
10/31/01 8.91 0.66 0.44 1.10 (0.67) 9.34
10/31/00 8.99 0.66 (0.08) 0.58 (0.66) 8.91
10/31/99 9.44 0.65 (0.45) 0.20 (0.65) 8.99
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
78
Ratios to Average Net Assets/Supplemental Data
----------------------------------------------------------------------------
Ratio of
Operating Expenses
to Average
Net Assets
Without Fee
Ratio of Ratio of Waivers, Expenses
Net Assets, Operating Net Investment Reimbursed and/or
End of Expenses to Income Fees Reduced by
Total Period Average to Average Portfolio Credits Allowed by
Return(1) (in 000's) Net Assets Net Assets Turnover Rate the Custodian(2)
--------- ----------- ----------- -------------- ------------- ------------------
U.S. GOVERNMENT SECURITIES FUND
Class A
04/30/04 (unaudited) 0.96% $ 153,683 0.93%(7) 3.61%(7) 16% 0.93%(7)
10/31/03 1.94% 176,859 0.93% 3.59% 62% 0.93%
10/31/02 5.37% 196,222 0.96% 4.91% 48% 0.96%
10/31/01 12.39% 174,047 0.95% 5.71% 30% 0.95%
10/31/00 6.65% 168,728 0.96% 6.12% 13% 0.99%
10/31/99 1.38% 221,592 0.96% 5.76% 55% 1.04%
Class B
04/30/04 (unaudited) 0.59% 189,908 1.66%(7) 2.88%(7) 16% 1.66%(7)
10/31/03 1.20% 251,153 1.66% 2.86% 62% 1.66%
10/31/02 4.62% 271,440 1.68% 4.19% 48% 1.68%
10/31/01 11.59% 128,155 1.67% 4.99% 30% 1.67%
10/31/00 5.91% 55,071 1.66% 5.42% 13% 1.69%
10/31/99 0.53% 72,751 1.70% 5.02% 55% 1.78%
Class C
04/30/04 (unaudited) 0.59% 9,345 1.65%(7) 2.89%(7) 16% 1.65%(7)
10/31/03 1.12% 13,354 1.64% 2.88% 62% 1.64%
10/31/02(4) 4.74% 11,634 1.63%(7) 4.24%(7) 48% 1.63%(7)
Class I
04/30/04 (unaudited) 1.14% 1,066,526 0.55%(7) 3.99%(7) 16% 0.55%(7)
10/31/03 2.32% 658,676 0.57% 3.95% 62% 0.57%
10/31/02 5.77% 365,912 0.58% 5.29% 48% 0.58%
10/31/01 12.81% 301,656 0.57% 6.09% 30% 0.57%
10/31/00 7.07% 247,204 0.56% 6.52% 13% 0.59%
10/31/99 1.43% 184,708 0.60% 6.12% 55% 0.68%
INCOME FUND
Class A
04/30/04 (unaudited) 2.04% $152,835 0.92%(7) 4.88%(7) 10% 0.92%(7)
10/31/03 10.10% 153,654 0.94% 5.42% 33% 0.94%
10/31/02 3.63% 130,512 0.97% 6.61% 20% 0.97%
10/31/01 12.21% 120,508 0.97% 6.86% 35% 0.97%
10/31/00 6.16% 131,665 1.02% 6.98% 32% 1.03%
10/31/99 1.98% 172,217 1.06% 6.84% 19% 1.10%
Class B
04/30/04 (unaudited) 1.79% 171,595 1.65%(7) 4.15%(7) 10% 1.65%(7)
10/31/03 9.31% 194,396 1.65% 4.71% 33% 1.65%
10/31/02 2.79% 142,186 1.68% 5.90% 20% 1.68%
10/31/01 11.52% 72,472 1.69% 6.14% 35% 1.69%
10/31/00 5.53% 39,347 1.73% 6.27% 32% 1.74%
10/31/99 1.12% 42,715 1.81% 6.09% 19% 1.85%
Class C
04/30/04 (unaudited) 1.78% 13,145 1.66%(7) 4.14%(7) 10% 1.66%(7)
10/31/03 9.33% 15,274 1.63% 4.73% 33% 1.63%
10/31/02(4) 2.25% 7,710 1.62%(7) 5.96%(7) 20% 1.62%(7)
Class I
04/30/04 (unaudited) 2.34% 784,203 0.55%(7) 5.25%(7) 10% 0.55%(7)
10/31/03 10.51% 679,139 0.56% 5.80% 33% 0.56%
10/31/02 3.94% 487,376 0.56% 7.02% 20% 0.56%
10/31/01 12.78% 387,998 0.56% 7.27% 35% 0.56%
10/31/00 6.72% 286,979 0.60% 7.40% 32% 0.61%
10/31/99 2.24% 76,145 0.68% 7.22% 19% 0.72%
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
79
financial highlights
For a Fund share outstanding throughout each period.
Income from Investment Operations
--------------------------------------------
Net Realized
Net Asset Value, and Unrealized Total from
Beginning of Net Investment Gain/(Loss) on Investment
Period Income Investments Operations
---------------- -------------- -------------- ----------
HIGH YIELD FUND
Class A
04/30/04 (unaudited) $7.88 $0.29 $ 0.19 $ 0.48
10/31/03 6.63 0.61(6) 1.31 1.92
10/31/02 7.44 0.71 (0.72) (0.01)
10/31/01 8.50 0.84 (1.00) (0.16)
10/31/00 8.92 0.90(6) (0.43) 0.47
10/31/99 8.86 0.91(6) 0.14(13) 1.05
Class B
04/30/04 (unaudited) 7.91 0.26 0.20 0.46
10/31/03 6.66 0.56(6) 1.31 1.87
10/31/02 7.47 0.66 (0.72) (0.06)
10/31/01 8.54 0.78 (1.01) (0.23)
10/31/00 8.97 0.84(6) (0.43) 0.41
10/31/99 8.90 0.86(6) 0.15(13) 1.01
Class C
04/30/04 (unaudited) 7.91 0.26 0.20 0.46
10/31/03 6.67 0.56(6) 1.30 1.86
10/31/02(4) 7.55 0.46 (0.86) (0.40)
Class I
04/30/04 (unaudited) 7.86 0.30 0.20 0.50
10/31/03 6.62 0.63(6) 1.30 1.93
10/31/02 7.43 0.73 (0.72) 0.01
10/31/01 8.48 0.87 (0.99) (0.12)
10/31/00 8.91 0.93(6) (0.43) 0.50
10/31/99 8.85 0.98(6) 0.11(13) 1.09
TAX-EXEMPT BOND FUND
Class A
04/30/04 (unaudited) $7.96 $0.17 $(0.12) $ 0.05
10/31/03 7.95 0.34 0.08 0.42
10/31/02 7.93 0.35 0.03 0.38
10/31/01 7.55 0.37 0.38 0.75
10/31/00 7.41 0.40 0.14 0.54
10/31/99 8.11 0.41 (0.70) (0.29)
Class B
04/30/04 (unaudited) 7.96 0.14 (0.12) 0.02
10/31/03 7.95 0.28 0.08 0.36
10/31/02 7.93 0.29 0.03 0.32
10/31/01 7.55 0.31 0.38 0.69
10/31/00 7.41 0.34 0.14 0.48
10/31/99 8.11 0.35 (0.70) (0.35)
Class C
04/30/04 (unaudited) 7.96 0.14 (0.12) 0.02
10/31/03 7.95 0.28 0.08 0.36
10/31/02(4) 7.83 0.20 0.12 0.32
Less Distributions
--------------------------------------------
Distributions
Dividends from from
Net Investment Net Realized Total Net Asset Value,
Income Capital Gains Distributions End of Period
-------------- ------------- ------------- ----------------
HIGH YIELD FUND
Class A
04/30/04 (unaudited) $(0.31) $ -- $(0.31) $8.05
10/31/03 (0.67) -- (0.67) 7.88
10/31/02 (0.80) -- (0.80) 6.63
10/31/01 (0.90) -- (0.90) 7.44
10/31/00 (0.89) -- (0.89) 8.50
10/31/99 (0.94) (0.05) (0.99) 8.92
Class B
04/30/04 (unaudited) (0.28) -- (0.28) 8.09
10/31/03 (0.62) -- (0.62) 7.91
10/31/02 (0.75) -- (0.75) 6.66
10/31/01 (0.84) -- (0.84) 7.47
10/31/00 (0.84) -- (0.84) 8.54
10/31/99 (0.89) (0.05) (0.94) 8.97
Class C
04/30/04 (unaudited) (0.28) -- (0.28) 8.09
10/31/03 (0.62) -- (0.62) 7.91
10/31/02(4) (0.48) -- (0.48) 6.67
Class I
04/30/04 (unaudited) (0.32) -- (0.32) 8.04
10/31/03 (0.69) -- (0.69) 7.86
10/31/02 (0.82) -- (0.82) 6.62
10/31/01 (0.93) -- (0.93) 7.43
10/31/00 (0.93) -- (0.93) 8.48
10/31/99 (0.98) (0.05) (1.03) 8.91
TAX-EXEMPT BOND FUND
Class A
04/30/04 (unaudited) $(0.17) $(0.09) $(0.26) $7.75
10/31/03 (0.34) (0.07) (0.41) 7.96
10/31/02 (0.35) (0.01) (0.36) 7.95
10/31/01 (0.37) -- (0.37) 7.93
10/31/00 (0.40) -- (0.40) 7.55
10/31/99 (0.41) -- (0.41) 7.41
Class B
04/30/04 (unaudited) (0.14) (0.09) (0.23) 7.75
10/31/03 (0.28) (0.07) (0.35) 7.96
10/31/02 (0.29) (0.01) (0.30) 7.95
10/31/01 (0.31) -- (0.31) 7.93
10/31/00 (0.34) -- (0.34) 7.55
10/31/99 (0.35) -- (0.35) 7.41
Class C
04/30/04 (unaudited) (0.14) (0.09) (0.23) 7.75
10/31/03 (0.28) (0.07) (0.35) 7.96
10/31/02(4) (0.20) -- (0.20) 7.95
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
80
Ratios to Average Net Assets/Supplemental Data
-----------------------------------------------------------------------------------
Ratio of
Operating Expenses
to Average
Net Assets
Without Fee
Ratio of Ratio of Waivers, Expenses
Net Assets, Operating Net Investment Reimbursed and/or
End of Expenses to Income to Fees Reduced by
Total Period Average Average Portfolio Credits Allowed by
Return(1) (in 000's) Net Assets Net Assets Turnover Rate the Custodian(2)
--------- ----------- ----------- -------------- ------------- ------------------
HIGH YIELD FUND
Class A
04/30/04 (unaudited) 5.95% $ 65,714 0.94%(7) 6.98%(7) 63% 0.94%(7)
10/31/03 30.13% 48,618 0.97% 8.24% 61% 0.97%
10/31/02 (0.48)% 13,563 1.03% 9.72% 60% 1.03%
10/31/01 (1.97)% 9,035 1.08% 10.47% 27% 1.09%
10/31/00 5.28% 8,182 1.08% 10.08% 40% 1.08%
10/31/99 12.26% 5,827 0.73% 10.17% 30% 1.37%
Class B
04/30/04 (unaudited) 5.68% 82,787 1.69%(7) 6.23%(7) 63% 1.69%(7)
10/31/03 29.08% 83,665 1.73% 7.48% 61% 1.73%
10/31/02 (1.17)% 44,004 1.78% 8.97% 60% 1.78%
10/31/01 (2.72)% 35,391 1.77% 9.78% 27% 1.78%
10/31/00 4.46% 32,881 1.78% 9.38% 40% 1.78%
10/31/99 11.44% 21,259 1.29% 9.61% 30% 1.93%
Class C
04/30/04 (unaudited) 5.68% 30,119 1.69%(7) 6.23%(7) 63% 1.69%(7)
10/31/03 29.08% 24,540 1.71% 7.50% 61% 1.71%
10/31/02(4) (5.66)% 2,556 1.78%(7) 8.97%(7) 60% 1.78%(7)
Class I
04/30/04 (unaudited) 6.27% 507,837 0.60%(7) 7.32%(7) 63% 0.60%(7)
10/31/03 30.44% 424,781 0.64% 8.57% 61% 0.64%
10/31/02 (0.15)% 244,937 0.68% 10.07% 60% 0.68%
10/31/01 (1.49)% 201,385 0.68% 10.87% 27% 0.69%
10/31/00 5.54% 168,097 0.72% 10.44% 40% 0.72%
10/31/99 12.75% 44,662 0.21% 10.69% 30% 0.85%
TAX-EXEMPT BOND FUND
Class A
04/30/04 (unaudited) 0.54% $193,573 0.89%(7) 4.19%(7) 13% 0.89%(7)
10/31/03 5.31% 207,433 0.88% 4.20% 47% 0.88%
10/31/02 5.02% 213,673 0.90% 4.49% 46% 0.90%
10/31/01 10.16% 219,883 0.89% 4.75% 44% 0.89%
10/31/00 7.52% 207,309 0.88% 5.41% 28% 0.90%
10/31/99 (3.77)% 247,814 0.89% 5.16% 57% 0.89%
Class B
04/30/04 (unaudited) 0.16% 39,481 1.64%(7) 3.44%(7) 13% 1.64%(7)
10/31/03 4.53% 45,061 1.62% 3.46% 47% 1.62%
10/31/02 4.25% 47,308 1.64% 3.75% 46% 1.64%
10/31/01 9.35% 43,978 1.63% 4.01% 44% 1.63%
10/31/00 6.73% 26,332 1.61% 4.68% 28% 1.63%
10/31/99 (4.52)% 25,059 1.64% 4.41% 57% 1.64%
Class C
04/30/04 (unaudited) 0.17% 3,950 1.63%(7) 3.45%(7) 13% 1.63%(7)
10/31/03 4.54% 4,332 1.61% 3.47% 47% 1.61%
10/31/02(4) 4.06% 2,395 1.61%(7) 3.78%(7) 46% 1.61%(7)
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
81
financial highlights
For a Fund share outstanding throughout each period.
Income from Investment Operations
--------------------------------------------
Net Realized
Net Asset Value, and Unrealized Total from
Beginning of Net Investment Gain/(Loss) on Investment
Period Income Investments Operations
---------------- -------------- -------------- ----------
CALIFORNIA MUNICIPAL FUND
Class A
04/30/04 (unaudited) 11.22 $0.24 $(0.15) $0.09
10/31/03 11.35 0.47 (0.06) 0.41
10/31/02 11.34 0.50 0.00(9) 0.50
10/31/01 10.81 0.53 0.53 1.06
10/31/00 10.43 0.55 0.38 0.93
10/31/99 11.46 0.54 (0.94) (0.40)
Class B
04/30/04 (unaudited) 11.22 0.20 (0.15) 0.05
10/31/03 11.35 0.38 (0.06) 0.32
10/31/02 11.34 0.42 0.00(9) 0.42
10/31/01 10.81 0.44 0.53 0.97
10/31/00 10.43 0.48 0.38 0.86
10/31/99 11.46 0.48 (0.97) (0.49)
Class C
04/30/04 (unaudited) 11.22 0.20 (0.15) 0.05
10/31/03 11.35 0.38 (0.06) 0.32
10/31/02(4) 11.20 0.28 0.14 0.42
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
Class A
04/30/04 (unaudited) $11.14 $0.16 $(0.17) $(0.01)
10/31/03 11.08 0.35 0.12 0.47
10/31/02 10.98 0.39 0.15 0.54
10/31/01 10.58 0.44 0.49 0.93
10/31/00 10.30 0.44 0.31 0.75
10/31/99 11.02 0.44(6) (0.55) (0.11)
Class B
04/30/04 (unaudited) 11.14 0.12 (0.17) (0.05)
10/31/03 11.08 0.27 0.12 0.39
10/31/02 10.98 0.31 0.15 0.46
10/31/01 10.58 0.36 0.49 0.85
10/31/00 10.30 0.36 0.31 0.67
10/31/99 11.02 0.36(6) (0.56) (0.20)
Class C
04/30/04 (unaudited) 11.14 0.12 (0.17) (0.05)
10/31/03 11.08 0.27 0.12 0.39
10/31/02(4) 10.90 0.21 0.18 0.39
Less Distributions
-------------------------------------------
Distributions
Dividends from from
Net Investment Net Realized Total Net Asset Value,
Income Capital Gains Distributions End of Period
-------------- ------------- ------------- ----------------
CALIFORNIA MUNICIPAL FUND
Class A
04/30/04 (unaudited) $(0.24) $ -- $(0.24) $11.07
10/31/03 (0.47) (0.07) (0.54) 11.22
10/31/02 (0.49) -- (0.49) 11.35
10/31/01 (0.53) -- (0.53) 11.34
10/31/00 (0.55) -- (0.55) 10.81
10/31/99 (0.57) (0.06) (0.63) 10.43
Class B
04/30/04 (unaudited) (0.20) -- (0.20) 11.07
10/31/03 (0.38) (0.07) (0.45) 11.22
10/31/02 (0.41) -- (0.41) 11.35
10/31/01 (0.44) -- (0.44) 11.34
10/31/00 (0.48) -- (0.48) 10.81
10/31/99 (0.48) (0.06) (0.54) 10.43
Class C
04/30/04 (unaudited) (0.20) -- (0.20) 11.07
10/31/03 (0.38) (0.07) (0.45) 11.22
10/31/02(4) (0.27) -- (0.27) 11.35
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
Class A
04/30/04 (unaudited) $(0.16) $(0.10) $(0.26) $10.87
10/31/03 (0.35) (0.06) (0.41) 11.14
10/31/02 (0.39) (0.05) (0.44) 11.08
10/31/01 (0.44) (0.09) (0.53) 10.98
10/31/00 (0.44) (0.03) (0.47) 10.58
10/31/99 (0.45) (0.16) (0.61) 10.30
Class B
04/30/04 (unaudited) (0.12) (0.10) (0.22) 10.87
10/31/03 (0.27) (0.06) (0.33) 11.14
10/31/02 (0.31) (0.05) (0.36) 11.08
10/31/01 (0.36) (0.09) (0.45) 10.98
10/31/00 (0.36) (0.03) (0.39) 10.58
10/31/99 (0.36) (0.16) (0.52) 10.30
Class C
04/30/04 (unaudited) (0.12) (0.10) (0.22) 10.87
10/31/03 (0.27) (0.06) (0.33) 11.14
10/31/02(4) (0.21) -- (0.21) 11.08
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
82
Ratios to Average Net Assets/Supplemental Data
-----------------------------------------------------------------------------------
Ratio of
Operating Expenses
to Average
Net Assets
Without Fee
Ratio of Ratio of Waivers, Expenses
Net Assets, Operating Net Investment Reimbursed and/or
End of Expenses to Income to Fees Reduced by
Total Period Average Average Portfolio Credits Allowed by
Return(1) (in 000's) Net Assets Net Assets Turnover Rate the Custodian(2)
--------- ----------- ----------- -------------- ------------- ------------------
CALIFORNIA MUNICIPAL FUND
Class A
04/30/04 (unaudited) 0.78% $239,953 0.84%(7) 4.28%(7) 12% 0.84%(7)
10/31/03 3.69% 252,511 0.85% 4.14% 34% 0.85%
10/31/02 4.57% 286,095 0.86% 4.39% 48% 0.86%
10/31/01 9.99% 291,132 0.85% 4.74% 52% 0.86%
10/31/00 9.33% 248,941 0.87% 5.30% 40% 0.88%
10/31/99 (3.87)% 283,929 0.88% 4.94% 92% 0.91%
Class B
04/30/04 (unaudited) 0.41% 223,524 1.59%(7) 3.53%(7) 12% 1.59%(7)
10/31/03 2.92% 255,445 1.59% 3.40% 34% 1.59%
10/31/02 3.79% 295,662 1.60% 3.65% 48% 1.60%
10/31/01 9.19% 237,594 1.58% 4.01% 52% 1.59%
10/31/00 8.53% 160,086 1.60% 4.57% 40% 1.61%
10/31/99 (4.62)% 133,842 1.63% 4.19% 92% 1.66%
Class C
04/30/04 (unaudited) 0.41% 6,134 1.60%(7) 3.54%(7) 12% 1.60%(7)
10/31/03 2.92% 8,193 1.59% 3.40% 34% 1.59%
10/31/02(4) 3.77% 6,665 1.58%(7) 3.67%(7) 48% 1.58%(7)
CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
Class A
04/30/04 (unaudited) (0.05)% $ 77,603 0.86%(7) 2.96%(7) 16% 0.86%(7)
10/31/03 4.29% 75,231 0.77% 3.15% 65% 0.86%
10/31/02 5.12% 57,102 0.70% 3.59% 28% 0.89%
10/31/01 9.00% 39,996 0.73% 4.09% 23% 0.92%
10/31/00 7.37% 29,657 0.91% 4.19% 45% 0.93%
10/31/99 (1.11)% 31,253 0.89% 4.13% 93% 0.97%
Class B
04/30/04 (unaudited) (0.42)% 80,523 1.62%(7) 2.20%(7) 16%(7) 1.62%(7)
10/31/03 3.51% 93,448 1.53% 2.39% 65% 1.62%
10/31/02 4.32% 89,240 1.46% 2.83% 28% 1.65%
10/31/01 8.19% 51,525 1.48% 3.34% 23% 1.67%
10/31/00 6.57% 35,685 1.66% 3.44% 45% 1.68%
10/31/99 (1.89)% 35,501 1.64% 3.38% 93% 1.72%
Class C
04/30/04 (unaudited) (0.43)% 9,386 1.62%(7) 2.20%(7) 16%(7) 1.62%(7)
10/31/03 3.50% 10,317 1.53% 2.39% 65% 1.62%
10/31/02(4) 3.58% 7,953 1.45%(7) 2.84%(7) 28% 1.64%(7)
See Notes to Financial Highlights on page 84.
See Notes to Financial Statements.
83
financial highlights
Notes to Financial Highlights
(1) Total return is not annualized for periods less than one year and does
not reflect any applicable sales charges. The total returns would have
been lower if certain fees had not been waived and/or expenses reimbursed
by the investment advisor or if fees had not been reduced by credits
allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly through custodian credits.
(3) The REIT Fund commenced operations on March 1, 2003.
(4) The Funds commenced selling Class C shares on March 1, 2002.
(5) The Equity Income Fund commenced selling Class I shares on August 1, 2000.
(6) Per share numbers have been calculated using the average shares method.
(7) Annualized.
(8) The West Coast Equity Fund commenced selling Class I shares on
June 7, 1999.
(9) Amount represents less than $0.01 per share.
(10) The Mid Cap Stock Fund commenced operations on March 1, 2000.
(11) The Small Cap Value Fund commenced operations on March 1, 2004.
(12) The Small Cap Growth Fund commenced selling Class I shares on
January 5, 2000.
(13) The amount shown may not agree with the change in aggregate gains and
losses of portfolio securities due to the timing of sales and redemptions
of Fund shares.
(14) Formerly the Small Cap Stock Fund.
See Notes to Financial Statements.
84
notes to financial statements (unaudited)
WM GROUP OF FUNDS
1. Organization and Business
WM Trust I ("Trust I") and WM Trust II ("Trust II") (collectively, the
"Trusts") were organized as Massachusetts business trusts on September
19, 1997 and February 22, 1989, respectively. The Trusts are each
registered under the Investment Company Act of 1940, as amended ("1940
Act"), as open-end management investment companies. Trust I and Trust II
consist of 19 funds (each a "Fund," collectively, the "Funds"), 16 of
which are presented in this report. The Small Cap Value Fund commenced
operations on March 1, 2004. Financial statements for the other Funds
included in the Trusts are presented in a separate report. The Funds
being reported on are as follows:
Trust I Trust II
Equity Funds Equity Funds
REIT Fund Growth Fund
Equity Income Fund Small Cap Growth Fund
Growth & Income Fund (formerly, Small Cap Stock Fund)
West Coast Equity Fund International Growth Fund
Mid Cap Stock Fund
Small Cap Value Fund
Fixed-Income Funds Fixed-Income Fund
U.S. Government Securities Fund Short Term Income Fund
Income Fund
High Yield Fund
Municipal Funds
Municipal Fund California Municipal Fund
Tax-Exempt Bond Fund California Insured Intermediate Municipal Fund
WM Advisors, Inc. (the "Advisor" or "WM Advisors") serves as investment
advisor to the Trusts. The Advisor is a wholly-owned subsidiary of
Washington Mutual, Inc. ("Washington Mutual"), a publicly owned
financial services company.
The Trusts are authorized to issue an unlimited number of shares of
beneficial interest, each without par value. Each of the Fixed-Income
Funds and the Equity Funds offer four classes of shares: Class A shares,
Class B shares, Class C shares and Class I shares. Each of the Municipal
Funds currently offers Class A shares, Class B shares and Class C
shares. Class A shares of the Funds are generally subject to an initial
sales charge at the time of purchase. Certain Class A shares purchased
without an initial sales charge may be subject to a contingent deferred
sales charge ("CDSC") if redeemed within eighteen months from the date
of purchase. Class B shares are not subject to an initial sales charge
although they are generally subject to a CDSC if redeemed within five
years from the date of purchase. Class C shares are not subject to an
initial sales charge although they are subject to a CDSC if redeemed
within one year from the date of purchase. Prior to January 1, 2004,
Class C shares were subject to an initial sales charge at the time of
purchase. In addition, redemptions from International Growth Fund, Class
A shares, including exchange redemptions, within 90 days of purchase are
subject to a redemption fee equal to 2.00% of the redemption proceeds,
which will be retained by the Fund. Class I shares are sold exclusively
to the various investment portfolios of the WM Strategic Asset
Management Portfolios, LLC (the "Portfolios"), an affiliated open-end
management investment company, and affiliates of Washington Mutual and
are not available for direct purchase by investors. Class I shares are
not subject to an initial sales charge or CDSC.
2. Significant Accounting Policies
The following is a summary of significant accounting policies, in
conformity with accounting principles generally accepted in the United
States of America ("generally accepted accounting principles"), which
are consistently followed by the Funds in the preparation of their
financial statements.
Portfolio valuation:
Securities that are primarily traded on a U.S. exchange (excluding
securities traded through the Nasdaq National Market System, which are
valued at the Nasdaq official close price) are valued at the last sale
price on that exchange or, if there were no sales during the day, at the
mean of the current day's bid and asked prices. Securities traded only
on over-the-counter markets (other than the Nasdaq National Market
System and the U.S. Government Securities System) are valued at the mean
of the current bid and asked prices.
85
notes to financial statements (unaudited) (continued)
WM GROUP OF FUNDS
The value of a foreign security is determined in its functional currency
as of the close of trading on the foreign exchange on which it is traded
or at the close of the New York Stock Exchange, if that is earlier, or
if there has been movement in the U.S. market and/or other economic
indicators that exceed a specified threshold, the foreign security is
fair valued. The value is then converted into its U.S. dollar equivalent
using prevailing exchange rates on the day the value of the foreign
security is determined.
Options are generally valued at the last sale price or, in the absence
of a last sale price, at the mean of the current day's bid and asked
prices. The value of a futures contract equals the unrealized gain or
loss on the contract, which is determined by marking the contract to the
current settlement price for a like contract acquired on the day on
which the futures contract is being valued.
Debt securities of U.S. issuers (other than short-term investments),
including municipal securities, are valued by one or more independent
pricing services (each a "Pricing Service") retained by the Trusts.
When, in the judgment of a Pricing Service, market quotations for these
securities are readily available, they are valued at the mean between
the quoted bid and asked prices. Short-term debt securities that mature
in 60 days or less are valued at amortized cost, which approximates
market value.
Securities for which market quotations are not readily available are
valued at fair value as determined by or under the direction of the
Board of Trustees.
Repurchase agreements:
Each Fund may enter into repurchase agreement transactions. A repurchase
agreement is a purchase of an underlying debt obligation subject to an
agreement by the seller to repurchase the obligation at an agreed upon
price and time. The value of the collateral is at all times at least
equal to the total amount of the repurchase obligation. In the event of
counterparty default, the Fund would seek to use the collateral to
offset losses incurred. There is potential loss to the Fund in the event
the Fund is delayed or prevented from exercising its right to dispose of
the collateral securities, including the risk of a possible decline in
the value of the underlying securities during the period while the Fund
seeks to assert its rights. WM Advisors, acting under the supervision of
the Board of Trustees, reviews the value of the collateral and the
creditworthiness of those banks and broker-dealers with whom each Fund
enters into repurchase agreements.
Futures contracts:
Certain Funds may enter into futures transactions. The underlying value
of a futures contract is incorporated within the unrealized
appreciation/(depreciation) shown in the Portfolio of Investments under
the caption "Futures Contracts."
Upon entering into a futures contract, the Fund is required to deposit
with the broker an amount of cash or cash equivalents equal to a certain
percentage of the contract amount (known as an initial margin deposit).
Subsequent payments (known as variation margins) are made or received by
the Fund each day, depending on the daily fluctuation of the value of
the contract. The daily changes in contract value are recorded as
unrealized gains or losses and the Fund recognizes a realized gain or
loss when the contract is closed. Should market conditions change
unexpectedly, the Funds may not achieve the anticipated benefits of the
futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in
the price of futures contracts, interest rates, and the underlying
hedged assets.
Purchased option contracts:
Certain Funds may enter into put and call option contracts. These Funds
may use option contracts to manage their exposure to the stock and bond
markets and to fluctuations in interest rates and currency values. Upon
entering into a put or call option, the premium paid is recorded as an
investment. The daily changes in contract value are recorded as
unrealized gains or losses. When a purchased option expires, the Fund
will realize a loss in the amount of the cost of the option. When the
Fund enters into a closing sale transaction, the Fund will realize a
gain or loss depending on whether the sales proceeds from the closing
sale transaction are greater or less than the cost of the option. When
the Fund exercises a put option, the Fund will realize a gain or loss
from the sale of the underlying security and the proceeds from such sale
will be decreased by the premium originally paid. When the Fund
exercises a call option, the cost of the security, which the Fund
purchases upon exercise, will be increased by the premium originally
paid. The risk associated with purchasing options is limited to the
premium originally paid.
86
notes to financial statements (unaudited) (continued)
WM GROUP OF FUNDS
Foreign currency:
The books and records of the Funds are maintained in U.S. dollars.
Foreign currencies, investments and other assets and liabilities are
translated into U.S. dollars on a daily basis using prevailing exchange
rates. Purchases and sales of investment securities, income and expenses
are translated on the respective dates of such transactions.
Unrealized gains and losses, not relating to securities, which result
from changes in foreign currency exchange rates have been included in
unrealized appreciation/(depreciation) of investments. Unrealized gains
and losses of securities, which result from changes in foreign currency
exchange rates as well as changes in market prices of securities, have
been included in unrealized appreciation/(depreciation) of investments.
Net realized foreign currency gains and losses, which result from
changes in exchange rates between trade date and settlement date on
investment transactions as well as the difference between the amounts of
interest and dividends recorded on the books of the Funds and the amount
actually received, have been included in realized gains/(losses) on
investment transactions. Foreign currency gains and losses, which result
from fluctuations in exchange rates between the initial purchase trade
date and subsequent sale trade date, have been included in realized
gains/(losses) on investment transactions.
Forward foreign currency contracts:
Certain Funds may enter into forward foreign currency contracts. Forward
foreign currency contracts are agreements to exchange one currency for
another at a future date and at a specified price. These Funds may use
forward foreign currency contracts to facilitate transactions in foreign
securities and to manage the Funds' foreign currency exposure. These
contracts are valued daily, and a Fund's net equity therein,
representing unrealized gain or loss on the contracts as measured by the
difference between the forward foreign exchange rates at the dates of
entry into the contracts and the forward rates at the reporting date, is
included in the "Statements of Assets and Liabilities". Realized and
unrealized gains and losses are included in the "Statements of
Operations". Risks arise from the possible inability of counterparties
to meet the terms of their contracts and from movement in currency and
securities values and interest rates. Due to the risks, the Funds could
incur losses up to the entire contract amount, which may exceed the net
unrealized value shown in the "Statements of Assets and Liabilities".
Illiquid investments:
Each Fund may invest a portion of its net assets in securities that are
not readily marketable, including: (1) repurchase agreements with
maturities greater than seven calendar days; (2) time deposits maturing
in more than seven calendar days; (3) certain futures contracts and
options; (4) certain variable rate demand notes having a demand period
of more than seven calendar days; and (5) securities, the disposition of
which are restricted under Federal securities laws, excluding certain
Rule 144A securities, as defined in the following paragraph.
Illiquid securities generally cannot be sold or disposed of in the
ordinary course of business (within seven calendar days) at
approximately the value at which the Funds have valued the investments.
This may have an adverse effect on the Fund's ability to dispose of
particular illiquid securities at fair market value and may limit the
Fund's ability to obtain accurate market quotations for purposes of
valuing the securities and calculating the net asset value of shares of
the Fund. The Funds may also purchase securities that are not registered
under the Securities Act of 1933, as amended (the "Act"), but that can
be sold to qualified institutional buyers in accordance with Rule 144A
under the Act ("Rule 144A Securities"). Rule 144A Securities generally
may be resold only to other qualified institutional buyers. If a
particular investment in Rule 144A Securities is not determined to be
liquid under the guidelines established by the Board of Trustees, that
investment will be subject to a Fund's limitation on investment in
illiquid securities.
Securities transactions and investment income:
Securities transactions are recorded on a trade date basis (the date the
order to buy or sell is executed). Realized gains and losses from
securities sold are recorded on the identified cost basis. Securities
purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income is not
accrued until settlement date. Each Fund instructs the custodian to
segregate assets of the Fund with a current value at least equal to the
amount of its when-issued purchase commitments.
Interest income on debt securities is accrued daily. Premiums and
discounts are amortized using the interest method. Paydown gains and
losses on mortgage-backed and asset-backed securities are presented as
an adjustment to interest income. Dividend income is recorded on the ex-
dividend date, except certain dividends from foreign securities are
recorded as soon as the Funds are informed of the ex-dividend date. Each
Fund's investment income and realized and unrealized gains and losses
are allocated among the classes of that Fund based upon the relative
average net assets of each class.
87
notes to financial statements (unaudited) (continued)
WM GROUP OF FUNDS
Dividends and distributions to shareholders:
Dividends from net investment income of the Fixed-Income Funds and the
Municipal Funds are declared daily and paid monthly. Dividends from net
investment income of the REIT and Equity Income Funds are declared and
paid quarterly. Dividends from any net investment income of the Growth &
Income, West Coast Equity, Mid Cap Stock, Growth, Small Cap Value, Small
Cap Growth and International Growth Funds are declared and paid
annually. Distributions of any net capital gains earned by a Fund are
distributed no less frequently than annually at the discretion of the
Board of Trustees. Additional distributions of net investment income
and capital gains for each Fund may be made at the discretion of the
Board of Trustees in accordance with federal income tax regulations.
Distributions from income and capital gains are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by
the Funds, dividends payable, redesignated distributions and differing
characterization of distributions made by each Fund.
Federal income taxes:
It is each Fund's policy to qualify as a regulated investment company by
complying with the requirements of the Internal Revenue Code of 1986, as
amended (the "Code"), applicable to regulated investment companies and
by distributing substantially all of its earnings to its shareholders.
Therefore, no federal income or excise tax provision is required.
Expenses:
General expenses of the Trusts are allocated to all the Funds based upon
the relative average net assets of each Fund except printing and postage
expenses, which are allocated to all the Funds based upon the relative
number of shareholder accounts of each Fund. Operating expenses directly
attributable to a class of shares are charged to the operations of that
class of shares. Expenses of each Fund not directly attributable to the
operations of any class of shares are prorated among the classes to
which the expenses relate based on the relative average net assets of
each class of shares.
Use of estimates:
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
3. Investment Advisory and Other Transactions
WM Advisors serves as investment advisor to the Trusts. The Advisor is
entitled to a monthly fee at an annual rate based upon a percentage of
the average daily net assets of each Fund at the following rates:
From $0 From $125 From $200 From $250 From $500 From $1 From $2
to $125 to $200 to $250 to $500 million to to $2 to $3 Over $3
Name of Fund million million million million $1 billion billion billion billion
------------ -----------------------------------------------------------------------------------------------------
REIT Fund 0.800% 0.800% 0.800% 0.800% 0.750% 0.750% 0.700% 0.650%
Equity Income Fund 0.625% 0.625% 0.625% 0.500% 0.500% 0.500% 0.500% 0.500%
Growth & Income Fund 0.625% 0.625% 0.625% 0.500% 0.500% 0.500% 0.500% 0.500%
West Coast Equity Fund 0.625% 0.625% 0.625% 0.625% 0.500% 0.375% 0.375% 0.375%
Mid Cap Stock Fund 0.750% 0.750% 0.750% 0.750% 0.750% 0.750% 0.750% 0.700%
Growth Fund 0.800% 0.800% 0.800% 0.800% 0.750% 0.750% 0.700% 0.650%
Small Cap Value Fund 0.850% 0.850% 0.850% 0.850% 0.850% 0.850% 0.850% 0.850%
Small Cap Growth Fund 0.850% 0.850% 0.850% 0.850% 0.850% 0.850% 0.850% 0.800%
International Growth
Fund 1.000% 0.800% 0.800% 0.800% 0.800% 0.750% 0.750% 0.700%
Short Term Income Fund 0.500% 0.500% 0.450% 0.450% 0.400% 0.400% 0.400% 0.400%
U.S. Government
Securities Fund 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.450%
Income Fund 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.450%
High Yield Fund 0.625% 0.625% 0.625% 0.500% 0.500% 0.500% 0.500% 0.500%
Tax-Exempt Bond Fund 0.500% 0.500% 0.500% 0.400% 0.400% 0.400% 0.400% 0.400%
California Municipal
Fund 0.500% 0.500% 0.500% 0.500% 0.500% 0.450% 0.450% 0.450%
California Insured
Intermediate
Municipal Fund 0.500% 0.500% 0.500% 0.500% 0.500% 0.450% 0.450% 0.450%
88
notes to financial statements (unaudited) (continued)
WM GROUP OF FUNDS
WM Shareholder Services, Inc. (the "Transfer Agent"), a wholly owned
subsidiary of Washington Mutual, serves as the transfer agent of the
Funds. Fees were paid to the Transfer Agent for services related to the
issuance and transfer of shares, maintaining shareholder lists, and
issuing and mailing distributions and reports. The authorized annual
shareholder servicing fee is $20.40, $21.15 and $21.15 for Class A,
Class B and Class C shareholder accounts for the Equity Funds, Fixed-
Income Funds and Municipal Funds, respectively. Prior to December 1,
2003, the authorized monthly shareholder servicing fee was $19.68,
$20.21 and $20.21 for Class A, Class B and Class C shareholder accounts
for the Equity Funds, Fixed-Income Funds and Municipal Funds,
respectively. Class I shares are not subject to shareholder servicing
fees. The Transfer Agent has voluntarily waived $28,056, $23,001 and
$6,739 of its transfer agent fees for Class A, Class B and Class C
shares of the Short Term Income Fund for the six months ended April 30,
2004, respectively.
Custodian fees for certain Funds have been reduced by credits allowed by
the Funds' custodian for uninvested cash balances. The Funds could have
invested this cash in income producing securities. Fees reduced by
credits allowed by the custodian for the six months ended April 30, 2004
are shown separately in the "Statements of Operations".
4. Trustees' Fees
No officer or employee of Washington Mutual or its subsidiaries receives
any compensation from the Trusts for serving as an officer or Trustee of
the Trusts. The Trusts, together with other mutual funds advised by WM
Advisors, pay each Trustee who is not an officer or employee of
Washington Mutual or its subsidiaries, a per annum retainer plus
attendance fees for each meeting at which they are present. The Lead
Trustee, Committee Chairs and Committee Members receive additional
remuneration for these services to the Trusts. Trustees are also
reimbursed for travel and out-of-pocket expenses. Each Trustee serves in
the same capacity for all 41 funds within the WM Group of Funds.
5. Distribution Plans
WM Funds Distributor, Inc. (the "Distributor"), a registered broker-
dealer and a wholly-owned subsidiary of Washington Mutual, serves as
distributor for Class A, Class B and Class C shares. For the six months
ended April 30, 2004, the Distributor has received $663,323 representing
commissions (front-end sales charges) on Class A and Class C shares and
$1,688,439 representing CDSCs on Class A, Class B and Class C shares.
Each of the Funds has adopted three distribution plans, pursuant to Rule
12b-1 under the 1940 Act, applicable to Class A, Class B and Class C
shares of the Fund (each, a "Rule 12b-1 Plan"), respectively. There are
no 12b-1 Plans applicable to Class I shares of the Funds. Under the
applicable Rule 12b-1 Plans, the Distributor may receive a service fee
at an annual rate of 0.25% of the average daily net assets of each
class. In addition, the Distributor is paid a fee as compensation in
connection with the offering and sale of Class B and Class C shares at
an annual rate of 0.75% of the average daily net assets of each class.
These fees may be used to cover the expenses of the Distributor
primarily intended to result in the sale of such shares, including
payments to the Distributor's representatives or others for selling
shares. The service fee is paid by the Fund to the Distributor, which in
turn, pays service fees to broker/dealers that provide services, such as
accepting telephone inquiries and transaction requests and processing
correspondence, new account applications and subsequent purchases for
the shareholders. Under their terms, each Rule 12b-1 plan shall remain
in effect from year to year, provided such continuance is approved
annually by vote of the Board of Trustees, including a majority of those
Trustees who are not "interested persons" of the Trusts, as defined in
the 1940 Act, and who have no direct or indirect financial interest in
the operation of such distribution plans, or any agreements related to
such plans, respectively.
6. Purchases and Sales of Investments
The aggregate cost of purchases and proceeds from sales of securities,
excluding U.S. Government and short-term investments, for the six months
ended April 30, 2004, are as follows:
Purchases Sales
Name of Fund (000s) (000s)
------------ --------- -----
REIT Fund $ 44,872 $ --
Equity Income Fund 232,102 51,328
Growth & Income Fund 265,942 58,359
West Coast Equity Fund 196,071 83,423
Mid Cap Stock Fund 172,852 51,509
Growth Fund 659,503 346,708
89
notes to financial statements (unaudited) (continued)
WM GROUP OF FUNDS
Purchases Sales
Name of Fund (000s) (000s)
------------ --------- -----
Small Cap Value Fund* $210,768 $ 10,923
Small Cap Growth Fund 99,126 237,160
International Growth Fund 139,254 35,039
Short Term Income Fund 33,435 2,413
U.S. Government Securities Fund 80,871 18
Income Fund 92,059 40,100
High Yield Fund 496,018 408,538
Tax-Exempt Bond Fund 31,674 47,897
California Municipal Fund 58,047 78,829
California Insured Intermediate
Municipal Fund 25,895 38,205
<FN>
*The Small Cap Value Fund commenced operations on March 1, 2004.
The aggregate cost of purchases and proceeds from sales of U.S.
Government securities, excluding short-term investments, for the six
months ended April 30, 2004, are as follows:
Purchases Sales
Name of Fund (000s) (000s)
------------ --------- -----
Equity Income Fund $ -- $ 335
Short Term Income Fund 12,318 5,989
U.S. Government Securities Fund 433,994 184,696
Income Fund 120,988 68,113
7. Lending of Securities
Certain Funds may lend securities to brokers, dealers and other
financial organizations to earn additional income. Each security loan is
collateralized with assets in an amount equal to or greater than the
current market value of the loaned securities. There is a risk of delay
in receiving collateral, that the collateral could lose value or become
valueless, or in recovering the securities loaned or even a loss of
rights in collateral should the borrower fail financially.
At April 30, 2004, each of the Funds with outstanding loans of
securities to certain brokers, dealers or other financial institutions
has segregated cash and/or securities at least equal to the market value
of securities loaned with the Funds' custodian.
8. Transactions with Affiliates
At April 30, 2004, the WM Strategic Asset Management Portfolios, LLC,
hold investments in a number of the Funds. The figures presented below
represent the percentage of shares outstanding of each Fund owned by the
Portfolios:
Portfolios
----------------------------------------------------------------------------------
Flexible Conservative Conservative Strategic
Income Balanced Balanced Growth Growth
Name of Fund Portfolio Portfolio Portfolio Portfolio Portfolio
- -------------------- ---------- ---------- ---------- ---------- ----------
REIT Fund 3.6% 3.0% 34.2% 35.0% 19.3%
Equity Income Fund 2.3% 1.9% 22.5% 21.6% 12.4%
Growth & Income Fund 3.2% 1.7% 20.6% 22.6% 15.3%
West Coast Equity Fund 1.1% 0.9% 12.0% 13.2% 9.7%
Mid Cap Stock Fund 4.0% 2.5% 28.1% 29.4% 23.8%
Growth Fund 3.1% 2.4% 28.1% 27.1% 18.6%
Small Cap Value Fund 3.8% 2.6% 32.9% 36.4% 23.5%
Small Cap Growth Fund 2.5% 1.6% 20.7% 22.9% 14.7%
International Growth Fund -- 3.0% 31.5% 33.8% 23.5%
Short Term Income Fund 37.5% 8.3% 12.6% -- --
U.S. Government Securities Fund 18.5% 7.4% 35.1% 14.1% --
Income Fund 18.1% 6.5% 32.3% 12.9% --
High Yield Fund 8.5% 3.6% 23.8% 16.8% 9.9%
90
notes to financial statements (unaudited) (continued)
WM GROUP OF FUNDS
9. Unrealized Appreciation/(Depreciation)
At April 30, 2004, the aggregate gross unrealized appreciation/(depreciation)
on a tax basis are as follows:
(In thousands)
------------------------------------------------------
Equity Growth & West Coast
REIT Income Income Equity
Fund Fund Fund Fund
-------- --------- --------- ----------
Tax basis unrealized appreciation $ 35,757 $ 216,669 $ 416,290 $ 310,884
Tax basis unrealized depreciation (2,707) (26,939) (38,721) (61,978)
-------- --------- --------- ----------
Net tax basis unrealized appreciation/
(depreciation) $ 33,050 $ 189,730 $ 377,569 $ 248,906
======== ========= ========= ==========
Mid Cap Small Cap Small Cap
Stock Growth Value Growth
Fund Fund Fund Fund
--------- --------- --------- ----------
Tax basis unrealized appreciation $ 117,465 $ 102,365 $ 4,314 $ 84,077
Tax basis unrealized depreciation (6,280) (29,488) (12,681) (83,526)
--------- --------- --------- ----------
Net tax basis unrealized appreciation/
(depreciation) $ 111,185 $ 72,877 $ (8,367) $ 551
========= ========= ========= ==========
Inter- U.S.
national Short Term Government
Growth Income Securities Income
Fund Fund Fund Fund
--------- --------- --------- ----------
Tax basis unrealized appreciation $ 69,201 $ 5,308 $ 11,610 $ 57,570
Tax basis unrealized depreciation (12,069) (965) (17,924) (28,301)
--------- --------- --------- ----------
Net tax basis unrealized appreciation/
(depreciation) $ 57,132 $ 4,343 $ (6,314) $ 29,269
========= ========= ========= ==========
California
Insured
High Tax-Exempt California Intermediate
Yield Bond Municipal Municipal
Fund Fund Fund Fund
--------- --------- --------- ----------
Tax basis unrealized appreciation $ 62,874 $ 15,888 $ 16,061 $ 2,567
Tax basis unrealized depreciation (19,020) (1,140) (2,925) (946)
--------- --------- --------- ----------
Net tax basis unrealized appreciation/
(depreciation) $ 43,854 $ 14,748 $ 13,136 $ 1,621
========= ========= ========= ==========
10. Industry and Geographic Concentration and Other Risk Factors
While no individual fund is intended as a complete investment program,
this is especially true for funds that concentrate their investments
such as those investing in particular industries or regions.
The Reit Fund concentrates its investments in real estate investment
trust ("REIT") securities or debt securities of issuers that are
principally engaged in the U.S. real estate or related industries. The
REIT Fund could be adversely impacted by economic trends within this
industry.
The West Coast Equity Fund concentrates its investments in companies
located or doing business in Alaska, California, Idaho, Montana, Oregon
and Washington. The West Coast Equity Fund could be adversely impacted
by economic trends within this region.
The High Yield Fund invests in lower rated debt securities, which may be
more susceptible to adverse economic conditions than investment grade
holdings. These securities are often subordinated to the prior claims of
other senior lenders, and uncertainties exist as to an issuer's ability
to meet principal and interest payments.
The California Municipal and California Insured Intermediate Municipal
Funds are more susceptible to factors adversely affecting issuers of
California municipal securities than is a municipal bond fund that is
not concentrated in these issuers. Uncertain economic conditions or
governmental developments may affect the ability of California municipal
securities issuers to meet their financial obligations.
Certain Funds may invest a portion of their assets in foreign
securities, developing or emerging markets countries; enter into forward
foreign currency transactions; lend their portfolio securities; enter
into stock index, interest rate and currency futures contracts, and
options on such contracts; enter into interest rate swaps or purchase or
sell interest rate caps or floors; enter into other types of options
transactions; make short sales; purchase zero coupon and payment-in-kind
bonds; enter into repurchase or reverse repurchase agreements; purchase
and sell "when-issued" securities and enter into "delayed-delivery"
transactions; and enter into various other investment practices, each
with inherent risks. The risks involved in investing in foreign
securities include those resulting from future adverse political and
economic developments and the possible imposition of currency exchange
restrictions or other foreign laws or restrictions. The risks involved
in investing in a high concentration of a single sector include those
resulting from future adverse political and economic developments or
regulatory occurrences and the potential for adverse effects to the
financial conditions of the industries within the sector due to market
fluctuations.
From time to time, one or more of the Funds used for investment by a
Portfolio may experience relatively large investments or redemptions due
to reallocations or rebalancings by the Portfolios. These transactions
will affect the Funds, since the Funds that experience redemptions as a
result of the reallocations or rebalancings may have to sell portfolio
securities and the Funds that
91
notes to financial statements (unaudited) (continued)
WM GROUP OF FUNDS
receive additional cash will have to invest such cash. While it is
impossible to predict the overall impact of these transactions over
time, there could be adverse effects on portfolio management to the
extent that the Funds may be required to sell securities or invest cash
at times when they would not otherwise do so. These transactions could
also have tax consequences if sales of securities resulted in gains and
could also increase transaction costs. The Advisor is committed to
minimizing such impact on the Funds to the extent it is consistent with
pursuing the investment objectives of the Portfolios. The Advisor may
nevertheless face conflicts in fulfilling its responsibilities. The
Advisor will, at all times, monitor the impact on the Funds of
transactions by the Portfolios.
11. Proxy Voting Information
A description of the policies and procedures that the Trusts use to
determine how to vote proxies relating to portfolio securities held by
the Fund is available, without charge and upon request, by calling 1-
800-222-5852. This information is also available from the EDGAR database
or the Securities and Exchange Commission's internet site at
http://www.sec.gov.
12. Special Meeting of Shareholders
A special meeting of shareholders of the U.S. Government Securities Fund
of the WM Trust I was convened on February 10, 2004, at which
shareholders approved the following:
To eliminate the Fund's fundamental policy regarding investment only in U.S. government securities.
Affirmative Against Abstained Total
----------- ------- --------- -----
Voted Shares 47,192,168.295 22,700,455.380 5,341,611.405 75,234,235.080
% of Outstanding Shares 45.196% 21.740% 5.116% 72.052%
% of Shares Voted 62.727% 30.173% 7.100% 100.000%
To eliminate the Fund's fundamental policy regarding investment of at least 80% of its assets in U.S. government securities.
Affirmative Against Abstained Total
----------- ------- --------- -----
Voted Shares 45,063,757.811 24,724,272.636 5,446,204.633 75,234,235.080
% of Outstanding Shares 43.158% 23.678% 5.216% 72.052%
% of Shares Voted 59.898% 32.863% 7.239% 100.000%
To eliminate the Fund's fundamental policy prohibiting investment in other investment companies.
Affirmative Against Abstained Total
----------- ------- --------- -----
Voted Shares 45,746,213.414 23,679,155.963 5,808,865.703 75,234,235.080
% of Outstanding Shares 43.811% 22.678% 5.563% 72.052%
% of Shares Voted 60.805% 31.474% 7.721% 100.000%
To eliminate the Fund's fundamental policy prohibiting investment in equity securities.
Affirmative Against Abstained Total
----------- ------- --------- -----
Voted Shares 46,237,450.169 22,935,125.586 6,061,659.325 75,234,235.080
% of Outstanding Shares 44.282% 21.965% 5.805% 72.052%
% of Shares Voted 61.458% 30.485% 8.057% 100.000%
To amend the Fund's fundamental investment policy regarding investments in real estate or commodities.
Affirmative Against Abstained Total
----------- ------- --------- -----
Voted Shares 46,552,644.319 22,450,661.618 6,230,929.143 75,234,235.080
% of Outstanding Shares 44.583% 21.501% 5.968% 72.052%
% of Shares Voted 61.877% 29.841% 8.282% 100.000%
92
Before investing, you should carefully consider a
fund's investment objectives, risks, charges, and
expenses. Contact your Investment Representative
or call 800-222-5852 to obtain a prospectus
containing this and other information. Read the
prospectus carefully before investing.
This Semi-Annual Report is published for the general information
of the shareholders of the WM Group of Funds. It is authorized
for distribution to prospective investors only when preceded or
accompanied by a current WM Group of Funds prospectus. A
mutual fund's share price and investment return will vary with
market conditions, and the principal value of an investment when
you sell your shares may be more or less than the original cost.
The WM Group of Funds are not insured by the FDIC. They are
not deposits or obligations of, nor are they guaranteed by, any
bank. These securities are subject to investment risk, including
possible loss of principal amount invested.
Distributed by:
WM Funds Distributor, Inc.
Member NASD
- ----------------------------------------------------------------------------
[logo]WM P R S R T S T D
GROUPofFUNDS U.S. POSTAGE
PAID
P.O. Box 9757 N. READING, MA
Providence, RI 02940-9757 PERMIT #105
[logo]Printed on recycled paper
WMGSAR (6/29/04)
[logo] WM
GROUPofFUNDS
M O N E Y
M A R K E T
F U N D S
Common sense. Uncommon solutions.
[photo]
SEMI-ANNUAL REPORT
April 30, 2004
Money Market Funds
Money Market Fund
Tax-Exempt Money Market Fund
California Money Fund
Table of Contents
Message from the President....................1
Portfolio of Investments......................2
Statements of Assets and Liabilities.........11
Statements of Operations.....................13
Statements of Changes in Net Assets..........14
Statements of Changes in Net
Assets - Capital Stock Activity..............15
Financial Highlights.........................16
Notes to Financial Statements................18
Not FDIC Insured
- --------------------------------------------------
May Lose Value * Not a Deposit * No Bank Guarantee
Not Insured by any Federal Government Agency
[PHOTO] Dear Shareholder,
Since our last shareholder report, the U.S. economy has regained its
economic foothold. Corporate profits have improved in an ongoing environment
of low inflation and low interest rates. Corporations are showing renewed
confidence that is evident through increased capital spending and hiring,
accompanied by higher worker productivity. The creation of more jobs in the
service and manufacturing sectors is a welcome sign that can have a positive
proliferating impact on the economy. We are also seeing the development of
more favorable factors outside the U.S. that can drive stronger economic
growth.
These developments were reflected in the performance of the stock market,
which gained 6% for the six-month period ended April 30, 2004.(1) Among the
best-performing equity sectors were energy (+22%), telecommunications
(+13%), health care (+10%), and consumer staples (+10%).(2) Corporate bonds,
particularly lower-quality high-yield issues in sectors such as insurance
(+10%), financial institutions (+9%), and basic industry (+8%), were among
the top-performing assets during the period.(3)
Asset Allocation Shows Its Benefits
What makes the investment business so challenging is that we continually see
new positive trends that are invariably accompanied by negative news. This
combination of events can rapidly alter our well-researched projections. As
a result, we continue to embrace asset allocation, which studies have shown
accounts for over 90% of an investment's return.(4) In our judgement, this
is the most appropriate and time-tested investment philosophy. Our approach
to investing is reflected in such variables as portfolio allocations, bond
maturities, corporate sector and asset class exposures, equity styles, and
capitalizations.
As evidence of how important asset allocation is to our investment approach,
we launched the WM Small Cap Value Fund, which invests in smaller-sized,
undervalued firms, on March 1 of this year. With this new fund, we can now
invest in up to 13 separate asset classes within our Strategic Asset
Management (SAM) Portfolios. It also provides us with greater investment
opportunities and strengthens our ability to spread assets across more
well-researched and widely traded investment styles.
Celebrating 65 Years of Shared Values
This year marks the 65th anniversary of our WM Equity Income Fund, which
traces its origins back to 1939 when it was launched as the Composite Bond
Fund, one of the first 50 mutual funds in the U.S. Much has changed since
then. Today there are over 8,000 U.S. mutual funds,(5) but few can claim a
similar heritage and institutional dedication to shareholder interests.
I am honored to be only the fourth president of WM Advisors during its
65-year history. My mentor, Lee Sahlin, upheld the corporate culture
developed under his predecessor, George Yancey, who worked alongside the
founder of the Composite Research & Management Company, R. M. "Pete"
Williams. My predecessors had long tenures because they took the values of
long-term investing, consistency of purpose, trust, and integrity very
seriously. I am proud that these values are still at work today at our
staff, management, and board levels.
The WM Group of Funds Board of Trustees is comprised of 11 experienced
individuals, eight of whom are independent of fund management. The remaining
three trustees (myself included) are termed "interested persons" who are
connected with fund management or Washington Mutual, Inc. Acting together,
the board members represent shareholder interests by striving to ensure that
the funds' managers, distributor, transfer agent, and other service
providers meet their fiduciary responsibilities.
A Time-Tested Investment Approach
As the mutual fund industry approaches its 80th anniversary, we note that
over a history with nearly the same longevity, WM Advisors has built a
venerable record of successful investment management. Our investment
philosophy has been tested over decades that have included some
extraordinary historic and economic events. We have persevered while also
achieving some exceptional results and recognition for our achievements from
national publications, such as Barron's.
I believe the key to this success can be distilled from our investment
process, consistent approach, and teamwork. Our overall approach is aligned
with the goals of our shareholders, so we operate with a common purpose.
This process has worked exceptionally well for the past 65 years, and we are
confident it can produce mutual benefits in the years ahead.
Sincerely,
/s/ William G. Papesh
William G. Papesh
President
<FN>
(1) As measured by the S&P 500 Index. Indices are unmanaged, and individuals
cannot invest directly in an index.
(2) Source: Bloomberg News.
(3) Source: Lehman Brothers.
(4) Source: Ibbotson Associates.
(5) Source: Investment Company Institute.
1
portfolio of investments
MONEY MARKET FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
COMMERCIAL PAPER (DOMESTIC) - 5.7%
Cooperative Association of Tractor
Dealers Inc.:
Series A, (MBIA Insured):
$10,000 1.080% due 05/12/2004+++ $ 9,997
5,000 1.110% due 07/08/2004+++ 4,990
10,100 1.110% due 07/09/2004+++ 10,078
8,300 1.110% due 07/14/2004+++ 8,281
4,000 Series B, (AMBAC Insured),
1.130% due 06/07/2004+++ 3,995
10,000 Goldman Sachs Group,
1.100% due 08/24/2004 9,965
--------
Total Commercial Paper (Domestic)
(Cost $47,306) 47,306
--------
COMMERCIAL PAPER (YANKEE) - 0.5%
(Cost $4,393)
4,393 Total Capital, SA,
1.040% due 05/03/2004 4,393
--------
CERTIFICATES OF DEPOSIT (YANKEE) - 8.3%
25,000 Bank of Nova Scotia,
1.050% due 08/26/2004++ 24,999
23,700 Bayerische Landesbank NY,
1.060% due 08/25/2004++ 23,700
20,000 Royal Bank of Canada,
1.015% due 06/02/2004++ 20,000
--------
Total Certificates of Deposit (Yankee)
(Cost $68,699) 68,699
--------
MEDIUM TERM NOTES - 16.2%
2,000 American Express Credit Corporation,
Series B, 4.250% due 02/07/2005 2,046
American Honda Finance Corporation:
15,000 1.240% due 02/11/2005++** 15,020
15,000 1.270% due 05/20/2004++** 15,001
3,000 Associates Corporation NA, Sr. Note,
Series G, 8.250% due 10/15/2004 3,092
7,000 Citigroup Global Markets, Series K,
1.230% due 06/17/2004++ 7,001
General Electric Capital Corporation, Series A:
5,200 1.155% due 12/15/2004++ 5,203
6,035 4.250% due 01/28/2005 6,164
8,590 7.250% due 05/03/2004 8,593
8,778 7.250% due 02/01/2005 9,170
10,000 MBIA Global Funding LLC,
1.060% due 02/07/2005++** 10,000
Merrill Lynch & Company, Inc., Series B:
2,025 1.360% due 06/11/2004++ 2,026
5,000 1.420% due 05/21/2004++ 5,001
12,275 5.350% due 06/15/2004 12,338
2,000 5.460% due 05/07/2004 2,001
5,000 Morgan Stanley, Sr. Note,
4.750% due 08/30/2004 5,058
15,000 Toyota Motor Credit Corporation,
1.040% due 06/17/2004++ 15,000
Principal
Amount Value
(000s) (000s)
- --------- ------
$10,000 U.S. Bancorp, Sr. Note, Series J,
6.875% due 12/01/2004 $ 10,325
--------
Total Medium Term Notes
(Cost $133,039) 133,039
--------
CORPORATE BONDS AND NOTES - 25.8%
3,250 2880 Stevens Creek LLC, Bond,
(LOC: Bank of the West),
1.180% due 11/01/2033+ 3,250
2,945 ASSK Properties LC, Note,
(LOC: Wells Fargo Bank),
1.250% due 12/01/2017+ 2,945
14,625 Associates Corporation NA, Sr. Note,
7.750% due 02/15/2005 15,371
1,000 Banaba Properties LLC, Note,
(LOC: Fifth Third Bank),
1.120% due 03/01/2020+ 1,000
2,010 BP Canada Energy Company, Deb.,
6.750% due 02/15/2005 2,094
3,000 Campus Research Corporation, Note, Series A,
(LOC: Wells Fargo Bank),
1.300% due 06/01/2013+ 3,000
4,000 Chatham Capital Corporation, Note,
(LOC: Fifth Third Bank),
1.070% due 11/01/2026+ 4,000
3,500 Corporate Finance Managers, Note,
(LOC: Wells Fargo Bank),
1.150% due 02/02/2043+ 3,500
1,000 Crestmont Nursing Home, Note,
1.070% due 03/01/2024+ 1,000
1,600 DBSI First Mortgage 1998, Note,
(LOC: U.S. Bank),
1.170% due 07/01/2023+ 1,600
1,000 Elmhurst Memorial Healthcare, Note,
1.070% due 01/01/2034+** 1,000
34,931 Everett Clinic, P.S., Bond,
(LOC: Bank of America),
1.110% due 05/01/2022+ 34,931
1,000 Family Express LLC, Note,
(LOC: Fifth Third Bank),
1.070% due 04/01/2028+ 1,000
First Union National Bank:
5,000 Note, 7.700% due 02/15/2005 5,249
12,000 Sr. Note, 1.280% due 06/21/2004++ 12,003
7,985 Foster Schweihofer Real Estate Holdings
Company, LLC, Note,
(LOC: Fifth Third Bank),
1.070% due 09/20/2033+ 7,985
9,000 General Electric Capital Corporation, Deb.,
8.850% due 04/01/2005 9,619
2,000 Gulf Gate Apartments, Bond,
(LOC: Wells Fargo Bank),
1.150% due 09/01/2028+** 2,000
5,000 Iowa 80 Group Inc., Note,
(LOC: Wells Fargo Bank),
1.250% due 06/01/2016+ 5,000
1,000 JUL-Mark Investments LLC, Note,
(LOC: Fifth Third Bank),
1.120% due 10/01/2025+** 1,000
See Notes to Financial Statements.
2
portfolio of investments (continued)
MONEY MARKET FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
CORPORATE BONDS AND NOTES - (continued)
$ 955 Lauren Company, LLC, Bond,
1.150% due 07/01/2033+** $ 955
1,900 Marsh Enterprises LLC, Note,
(LOC: Fifth Third Bank),
1.070% due 01/01/2028+ 1,900
4,500 Medical Properties Inc., Revenue Bonds,
(Dakota Clinic Ltd. Project),
(LOC: ABN AMRO Bank NV),
1.130% due 12/15/2024+ 4,500
Michigan Equity Group, Note (LOC: Fifth
Third Bank):
1,000 1.120% due 04/01/2034+** 1,000
2,530 Series B, 1.120% due 04/01/2034+** 2,530
11,000 National Bank of Canada, Note,
8.125% due 08/15/2004 11,220
1,390 Northern Trust Company, Note,
6.650% due 11/09/2004 1,429
4,800 Pineview Estates LC, Note,
(LOC: Fifth Third Bank),
1.070% due 01/01/2023+ 4,800
14,526 Portland Clinic LLP, Bond, (LOC: U.S. Bank),
1.130% due 11/20/2027+ 14,526
15,955 Presbyterian Homes & Services of New Jersey
Obligated Group, Revenue Bonds, Series
1998-B1, (LOC: Fleet National Bank),
1.100% due 12/01/2028+ 15,955
4,615 Rise Inc., Note, (LOC: Wells Fargo Bank),
1.250% due 11/01/2022+ 4,615
4,800 Rockwood Quarry LLC, Note,
(LOC: Fifth Third Bank),
1.070% due 12/01/2022+ 4,800
1,000 Sanders CRS Exchange LLC, Note,
(LOC: Wells Fargo Bank),
1.250% due 10/01/2023+** 1,000
1,250 Spartan Medical Facility, Note,
(LOC: Fifth Third Bank),
1.120% due 12/01/2026+** 1,250
2,900 Tacoma Goodwill Industries, Bond,
(LOC: Bank of America),
1.120% due 02/01/2023+ 2,900
1,000 Titan Holdings Group LLC, Note,
(LOC: Fifth Third Bank),
1.120% due 05/01/2012+ 1,000
16,500 Wachovia Corporation, Sr. Note,
6.700% due 06/21/2004 16,626
1,478 Watts Brothers Frozen Foods, Bond,
(LOC: U.S. Bank),
1.170% due 07/01/2013+ 1,478
2,500 Wells Fargo & Company, Sr. Note,
7.500% due 04/15/2005 2,642
--------
Total Corporate Bonds and Notes
(Cost $212,673) 212,673
--------
TAXABLE MUNICIPAL BONDS - 26.8%
2,000 ABAG, California, Finance Authority
for Nonprofit Corporations, Revenue Bonds,
(Public Policy Institute of California
Project), Series B, (LOC: Bank of
New York), 1.200% due 11/01/2031+ 2,000
Principal
Amount Value
(000s) (000s)
- --------- ------
$ 7,450 Acworth, Georgia, Downtown Development
Authority, IDR, (City of Acworth Cable
Fiber Optic Project), (AMBAC Insured),
1.120% due 01/01/2017+ $7,450
10,000 Brooks County, Georgia, Development
Authority, IDR, (Langboard Inc. Project),
(LOC: Bank of America),
1.100% due 04/01/2018+ 10,000
5,500 California Educational Facilities Authority,
Loan Agreement Revenue, (University of
Judaism), Series B,
(LOC: Allied Irish Bank PLC),
1.170% due 12/01/2028+ 5,500
1,400 California Statewide Communities Development
Authority, MFHR, (Pavilions at Sunrise
Apartments), Series M-T, (LOC: Fannie Mae),
1.130% due 08/15/2034+ 1,400
1,225 Colorado Housing & Finance Authority,
Economic Development Revenue, (G.A.
Wright Asset Management, LLC Project),
(LOC: Wells Fargo Bank),
1.150% due 04/01/2029+ 1,225
Connecticut State Housing Finance Authority,
Housing Revenue, (Housing Mortgage
Finance Program), (AMBAC Insured):
14,000 Series A-4,
1.080% due 05/15/2032+ 14,000
2,795 Series F-1,
1.080% due 11/15/2016+ 2,795
25,000 Subseries B-6,
1.080% due 11/15/2027+ 25,000
2,800 Florida Housing Finance Corporation,
Multifamily Mortgage Revenue,
(Northbridge at Millenia Apartments),
Series V-2, (LOC: Bank of America),
1.110% due 06/15/2036+ 2,800
Illinois Health Facilities Authority, Health
Care Revenue, Series B:
6,000 (Silver Cross Hospital Project),
(LOC: Fifth Third Bank),
1.100% due 08/15/2017+ 6,000
1,300 (West Suburban Hospital Medical Center
Project), (LOC: American National Bank),
1.100% due 07/01/2024+ 1,300
3,000 Kern Water Bank Authority, California,
Water Revenue, Series B,
(LOC: Wells Fargo Bank),
1.150% due 07/01/2028+ 3,000
3,200 Kit Carson County, Colorado, Agricultural
Development Revenue, (Midwest Farms LLC),
(LOC: Wells Fargo Bank),
1.120% due 06/01/2027+ 3,200
3,000 Long Beach, California, Revenue Bonds,
(Long Beach Towne Center Site
Refinancing Project), Series A,
(LOC: Allied Irish Bank PLC),
1.180% due 11/01/2030+ 3,000
4,340 Los Angeles, California, Community
Redevelopment Agency, Financing Authority
Revenue, (Bunker Hill Project), Series B,
(AMBAC Insured),
1.490% due 12/01/2004*** 4,340
See Notes to Financial Statements.
3
portfolio of investments (continued)
MONEY MARKET FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
TAXABLE MUNICIPAL BONDS - (continued)
$ 1,000 Michigan Public Educational Facilities
Authority, Revenue Note,
(LOC: Fifth Third Bank),
1.400% due 09/01/2004 $ 999
3,530 Michigan State Strategic Fund, Limited
Obligation Revenue, (Environmental
Research Institute of Michigan Project),
Series B, (LOC: Fifth Third Bank),
1.070% due 10/01/2025+ 3,530
4,315 New Hampshire State Housing Finance
Authority, MFHR, (Pheasant Run
Properties Limited Partnership Project),
(FNMA Collateral),
1.100% due 04/15/2016+ 4,315
New York City Housing Development
Corporation, MFHR, Series B:
6,800 (92nd & First Residential Tower),
(LOC: Fleet National Bank),
1.100% due 11/01/2036+ 6,800
2,500 (LOC: KeyBank National Association),
1.100% due 07/01/2035+ 2,500
700 (One Columbus Place Development),
(FNMA Collateral),
1.070% due 11/15/2028+ 700
1,245 (West 43rd Street Development),
(FNMA Collateral),
1.070% due 04/15/2029+ 1,245
20,000 New York City, GO, Subseries A-11,
(FGIC Insured),
1.080% due 11/01/2020+ 20,000
New York State Housing Finance Agency,
Housing Revenue, Series B:
4,000 (350 West 43rd Street Project),
(LOC: Fleet National Bank),
1.070% due 11/01/2034+ 4,000
3,000 (West 20th Street Project),
(FNMA Collateral),
1.080% due 05/15/2033+ 3,000
4,800 (West 33rd Street Project),
(FNMA Collateral),
1.070% due 11/15/2036+ 4,800
37,100 Oakland-Alameda County, California,
Coliseum Authority, Lease Revenue,
(Coliseum Project), Series D,
(LOC: Wachovia Bank),
1.100% due 02/01/2011+ 37,100
Orange County, Florida, Housing Finance
Authority, MFHR, Series B:
2,320 (Northbridge At Millenia - Phase II Project),
(LOC: SouthTrust Bank),
1.130% due 08/15/2036+ 2,320
1,550 (The Landings on Millenia Blvd. Apartments),
(LOC: Fannie Mae),
1.110% due 08/15/2035+ 1,550
2,435 Plymouth, Minnesota, Health Facilities
Revenue, (Westhealth Project), Series B,
(FSA Insured),
1.120% due 06/01/2024+ 2,435
Principal
Amount Value
(000s) (000s)
- --------- ------
$ 2,000 Roman Catholic Diocese of Raleigh, North
Carolina, Demand Notes, Series A,
(LOC: Bank of America),
1.150% due 06/01/2018+ $ 2,000
5,250 Santa Rosa, California, Pension Obligation,
Revenue Bonds, Series A,
(LOC: Landesbank Hessen-Thuringen),
1.200% due 09/01/2024+ 5,250
3,000 Savannah College of Art & Design, Inc.,
Georgia, Revenue Bonds,
(LOC: Bank of America),
1.100% due 04/01/2024+ 3,000
10,700 South Fulton, Georgia, Municipal Regional
Jail Authority, Lease Revenue, (Union City
Justice Center Project), (MBIA Insured),
1.100% due 11/01/2017+ 10,700
5,750 Union County Improvement Authority, New
Jersey, Revenue Bonds, (Cedar Glen Housing
Corporation - Hanover Township Housing
Project), Series B, (FNMA Collateral),
1.100% due 12/15/2014+ 5,750
1,445 University of Illinois, College & University
Revenue, (UIC South Campus
Development Project), (FGIC Insured),
7.620% due 01/15/2005 1,508
Washington State Housing Finance
Commission, MFHR, Series B:
1,910 (Boardwalk Apartments Project),
(FNMA Collateral),
1.130% due 09/01/2028+ 1,910
1,725 (Cedar Landing Project),
(LOC: U.S. Bank),
1.170% due 12/01/2028+ 1,725
1,070 (Oxford Square Project),
(LOC: U.S. Bank),
1.170% due 12/01/2028+ 1,070
--------
Total Taxable Municipal Bonds
(Cost $221,217) 221,217
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 10.3%
Federal Home Loan Bank, Bond:
20,000 0.970% due 07/06/2004++ 19,997
15,000 1.400% due 03/29/2005 15,000
5,000 1.500% due 03/08/2005 5,000
10,000 Federal Home Loan Mortgage Corporation,
Note, 1.360% due 08/06/2004 10,000
Federal National Mortgage Association, Note:
10,000 1.200% due 07/23/2004+++ 9,972
10,000 1.500% due 03/01/2005 10,000
5,000 1.610% due 05/13/2005 5,000
5,000 1.750% due 05/23/2005 5,000
5,000 1.800% due 05/27/2005 5,000
--------
Total U.S. Government Agency Obligations
(Cost $84,969) 84,969
--------
See Notes to Financial Statements.
4
portfolio of investments (continued)
MONEY MARKET FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
FUNDING AGREEMENT - 4.3%
(Cost $35,000)
$35,000 New York Life Insurance,
1.160% due 08/04/2004**** $ 35,000
--------
TOTAL INVESTMENTS++++ (Cost $807,296*) 97.9% 807,296
OTHER ASSETS AND LIABILITIES (Net) 2.1 17,033
----- --------
NET ASSETS 100.0% $824,329
===== ========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Security acquired in a transaction exempt from registration under
Rule 144A of the Securities Act of 1933.
*** Security purchased on a when-issued basis.
**** Security is restricted and illiquid. It was acquired on August 5, 2003,
and has a value of $0.04 per share to the Fund.
+ Variable rate securities payable upon demand with not more than five
business days' notice, and secured by bank letters of credit or guarantees
by certain corporations. The interest rate shown reflects the rate in
effect at April 30, 2004.
++ Floating rate security whose interest rate is reset periodically
based on an index.
+++ Rate represents discount rate on purchase date.
++++ All securities segregated as collateral for when-issued securities.
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GO -- General Obligation Bond
IDR -- Industrial Development Revenue
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
5
portfolio of investments
TAX-EXEMPT MONEY MARKET FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
MUNICIPAL BONDS AND NOTES - 95.3%
Alaska - 3.1%
Anchorage, UTGO, (MBIA Insured):
$ 300 (Pre-refunded to 07/01/2004 @ $102),
6.000% due 07/01/2014 $ 308
500 Series A,
2.500% due 06/01/2004 501
--------
809
--------
Arizona - 8.4%
1,200 Apache County, Industrial Development
Authority, IDR, Tucson Electric Power
Company, (LOC: Toronto Dominion Bank),
1.150% due 12/01/2020+ 1,200
655 Arizona Health Facilities Authority, Health
Care Revenue, (Pooled Loan Program), (FGIC
Insured), 1.110% due 10/01/2015+ 655
305 Pinal County, Community College District,
Pledged Lease Revenue, (AMBAC Insured),
2.000% due 07/01/2004 305
--------
2,160
--------
Colorado - 1.4%
200 Colorado Educational & Cultural Facilities
Authority, College & University Revenue,
(University of Denver Project), (AMBAC
Insured), 5.000% due 03/01/2005 206
150 Platte River Power Authority, Power Revenue,
Series DD, (MBIA Insured),
5.750% due 06/01/2004 151
--------
357
--------
District of Columbia - 3.0%
300 District of Columbia, IDR, (Resources for the
Future Inc. Project), (LOC: Wachovia Bank),
1.150% due 08/01/2029+,++ 300
465 District of Columbia, UTGO, Series B-2,
(FSA Insured),
5.300% due 06/01/2004 467
--------
767
--------
Florida - 8.4%
200 First Governmental Financing Commission,
Revenue Bonds, (MBIA Insured),
3.500% due 07/01/2004 201
250 Gulf Breeze, Revenue Bonds, (Local
Government Loan Program),
(FGIC Insured),
2.000% due 12/01/2020+ 251
200 Lee County, COP, (FSA Insured),
5.400% due 08/01/2004 202
500 Orange County, Health Facilities Authority,
Health Care Revenue, (Presbyterian
Retirement Community Project),
(LOC: Bank of America),
1.150% due 11/01/2028+ 500
Principal
Amount Value
(000s) (000s)
- --------- ------
$ 700 Orange County, IDR, (Central Florida YMCA
Project), Series A, (LOC: Bank of America),
1.150% due 05/01/2027+ $ 700
320 Port St. Lucie, COP, (Public Buildings
Project), (MBIA Insured),
2.000% due 09/01/2004 321
--------
2,175
--------
Georgia - 2.9%
750 Dahlonega, Downtown Development Authority,
Student Housing Revenue, (North Georgia
Student Housing LLC Project), Series A,
(LOC: Wachovia Bank),
1.130% due 06/01/2028+ 750
--------
Hawaii - 1.9%
475 Hawaii State, UTGO, Series CJ,
(FGIC-TCRS Insured),
(Pre-refunded to 01/01/2005 @ $100),
6.250% due 01/01/2015 491
--------
Illinois - 6.0%
IIlinois Health Facilities Authority, Health
Care Revenue:
350 (Blessing Hospital Project), Series B,
(FSA Insured), 1.130% due 11/15/2029+ 350
200 (University of Chicago Hospitals Project),
(MBIA Insured), (Pre-refunded to 08/15/2004
@ $102), 6.125% due 08/15/2021 207
1,000 Illinois International Port District
Facilities, Revenue Bonds, (LOC: ABN AMRO
Bank NV), 1.110% due 01/01/2023+ 1,000
--------
1,557
--------
Iowa - 2.3%
600 Webster County, Educational Facilities
Revenue, (State Edmond Project),
(LOC: Wells Fargo Bank),
1.120% due 07/01/2020+ 600
--------
Kansas - 5.8%
1,500 Shawnee, IDR, (Shawnee Village
Association LP), (LOC: J.P. Morgan
Chase Bank), 1.150% due 12/01/2009+ 1,500
--------
Kentucky - 0.6%
140 Louisville & Jefferson County, Metropolitan
Sewer District, Sewer & Drainage System
Revenue, Series A, (FGIC Insured),
9.000% due 05/15/2005 151
--------
Massachusetts - 2.8%
500 Massachusetts Water Pollution Abatement
Trust, Water Revenue, Series A, ETM,
6.000% due 08/01/2004 506
212 Northbridge, UTGO, (MBIA Insured),
2.500% due 06/01/2004 212
--------
718
--------
See Notes to Financial Statements.
6
portfolio of investments (continued)
TAX-EXEMPT MONEY MARKET FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
MUNICIPAL BONDS AND NOTES - (continued)
Michigan - 1.0%
$ 100 Gogebic-Iron Wastewater Authority, Sewer
Revenue, (MBIA Insured), (Pre-refunded to
01/01/2005 @ $100),
6.050% due 01/01/2025 $ 103
150 Novi, Community School District, UTGO,
(FGIC Insured), (Pre-refunded to
05/01/2004 @ $101),
5.300% due 05/01/2010 152
--------
255
--------
Minnesota - 1.2%
300 Golden Valley, IDR, (Unicare Homes Inc.
Project), (LOC: Bank of America),
1.130% due 09/01/2014+ 300
--------
Missouri - 2.8%
335 Jackson County, Public Facilities Authority,
Insured Leasehold Revenue, (Capital
Improvements Project), (MBIA Insured),
(Pre-refunded to 12/01/2004 @ $100),
6.125% due 12/01/2015 345
370 Macon, COP, (MBIA Insured),
2.500% due 08/01/2004 371
--------
716
--------
Nebraska - 0.6%
150 Nebraska Investment Finance Authority,
Health Facilities Revenue, (Nebraska
Methodist Health System),
(MBIA Insured),
5.000% due 11/01/2004 153
--------
Nevada - 4.3%
470 Clark County, Economic Development Revenue,
(University of Nevada - Las Vegas Project),
(LOC: Wells Fargo Bank),
1.120% due 08/01/2019+ 470
120 Clark County, School District, LTGO,
(Building & Renovation Project), Series B,
(FGIC Insured),
6.500% due 06/15/2004 121
500 Washoe County, COP, (Public Safety Training
Facility Project), (AMBAC Insured),
4.500% due 09/01/2004 506
--------
1,097
--------
New Jersey - 2.6%
400 Dover Township, UTGO, (General Improvement -
Golf Course Utility), (FGIC Insured),
2.750% due 03/01/2005 405
250 New Jersey Economic Development Authority,
Market Transition Facility Revenue, Sr. Lien,
Series A, (MBIA Insured), (Pre-refunded to
07/01/2004 @ $102),
5.800% due 07/01/2008 257
--------
662
--------
Principal
Amount Value
(000s) (000s)
- --------- ------
North Dakota - 3.5%
$ 900 Grand Forks, Hospital Facilities Revenue,
(The United Hospital Obligated Group
Project), (LOC: Lasalle National Bank),
1.100% due 12/01/2025+ $ 900
--------
Ohio - 5.4%
480 Kettering, City School District, UTGO,
(FSA Insured),
2.000% due 12/01/2004 482
900 Warren County, Health Care Facilities
Authority, Health Care Revenue, (Otterbein
Homes Project), Series A, (LOC: Fifth
Third Bank), 1.110% due 07/01/2021+ 900
--------
1,382
--------
Oklahoma - 1.9%
500 Oklahoma State Industrial Authority,
Health Care Revenue, (Tealridge Manor
Corporation Project),
(LOC: Bank of America),
1.150% due 11/01/2018+ 500
--------
Oregon - 1.5%
195 Oregon State Department of Transportation,
Transit Revenue, (Regional Light Rail
Extension-Westside Project),
(AMBAC Insured),
1.650% due 06/01/2004 195
200 Port of Portland, Portland International
Airport Revenue, Series Fifteen A,
(FGIC Insured), 5.000% due 07/01/2004 201
--------
396
--------
Pennsylvania - 1.5%
175 Allegheny County, Hospital Development
Authority, Health Care Revenue,
(UPMC Health System Project), Series A,
(MBIA Insured), 5.000% due 08/01/2004 177
200 Sharon, City School District, UTGO,
(FSA Insured), 2.000% due 05/15/2004 200
--------
377
--------
South Dakota - 1.1%
290 Lower Brule Sioux Tribe, UTGO, (Tribal
Purpose Project),
(LOC: Wells Fargo Bank),
1.120% due 12/01/2011+ 290
--------
Tennessee - 3.9%
1,000 Metropolitan Government Nashville &
Davidson County, Industrial Development
Board, MFHR, (Chimneytop II Project),
(LOC: Bank of America),
1.130% due 09/01/2006+ 1,000
--------
See Notes to Financial Statements.
7
portfolio of investments (continued)
TAX-EXEMPT MONEY MARKET FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
MUNICIPAL BONDS AND NOTES - (continued)
Texas - 1.4%
$ 200 Austin, Electric Utility System Revenue,
(Travis and Williamson Counties),
Series A, (AMBAC Insured),
5.000% due 11/15/2004 $ 204
150 Fort Worth, LTGO, (Tarrant and Denton
Counties), Series A,
(FSA Insured),
6.000% due 03/01/2005 156
--------
360
--------
Virginia - 1.4%
350 Norfolk Industrial Development Authority, IDR,
(Children's Hospital of the King's Daughters
Inc. Project), (LOC: Wachovia Bank),
1.100% due 06/01/2020+ 350
--------
Washington - 11.1%
1,000 King County, Economic Enterprise Corporation
Revenue, (Puget Sound Blood Center Project),
(LOC: U.S. Bank),
1.140% due 04/01/2023+ 1,000
1,010 Seattle, Low Income Housing Assistance
Authority, Health Care Revenue, (Bayview
Manor Homes Project), Series B,
(LOC: U.S. Bank),
1.140% due 05/01/2019+ 1,010
500 Washington State Health Care Facilities
Authority, Health Care Revenue, (Empire
Health Services), (LOC: U.S. Bank),
1.130% due 11/01/2023+ 500
340 Washington State Housing Finance Commission,
Elderly Housing Revenue, (Riverview
Retirement Project), (LOC: U.S. Bank),
1.140% due 07/01/2022+ 340
--------
2,850
--------
West Virginia - 2.5%
645 West Virginia State Parkways Economic
Development & Tourism Authority,
Highway Tolls Revenue, (FGIC Insured),
Zero coupon due 05/15/2004 645
--------
Wisconsin - 1.0%
250 Racine, UTGO, Series A, (Pre-refunded to
12/01/2004 @ $100),
4.750% due 12/01/2006 255
--------
Total Municipal Bonds and Notes
(Cost $24,523) 24,523
--------
Value
Shares (000s)
- ------ ------
INVESTMENT COMPANY SECURITIES - 3.3%
855,464 Dreyfus Tax-Exempt Cash
Management Fund $ 855
1,000 Wells Fargo Tax Free Institutional
Money Market Fund 1
--------
Total Investment Company Securities
(Cost $856) 856
--------
TOTAL INVESTMENTS (COST $25,379*) 98.6% 25,379
OTHER ASSETS AND LIABILITIES (Net) 1.4 367
----- --------
NET ASSETS 100.0% $ 25,746
===== ========
<FN>
- --------
* Aggregate cost for federal tax purposes.
+ Variable rate securities payable upon demand with not more than five
business days' notice, and secured by bank letters of credit or
guarantees by certain corporations. The interest rate shown reflects
the rate in effect at April 30, 2004.
++ Security is a private placement.
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Federal Guaranty Insurance Corporation
FSA -- Financial Security Assurance
IDR -- Industrial Development Revenue
LOC -- Letter of Credit
LTGO -- Limited Tax General Obligation Bond
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
TCRS -- Transferable Custodial Receipts
UTGO -- Unlimited Tax General Obligation Bond
- ------------------------------------------------------------------------------
Tax-Exempt Money Market Fund had the following insurance concentrations
greater than 10% at April 30, 2004 (as a percentage of net assets)
(unaudited):
MBIA 12.8%
FGIC 11.9%
See Notes to Financial Statements.
8
portfolio of investments
CALIFORNIA MONEY FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
MUNICIPAL BONDS AND NOTES - 102.6%
California - 98.1%
ABAG Financing Authority For Nonprofit
Corporation, Revenue Bonds:
$ 1,200 (Hamlin School Project), Series A,
(LOC: BNP Paribas SA),
1.100% due 08/01/2032+ $ 1,200
1,000 (Point Loma Nazarene University Project),
(LOC: Allied Irish Bank PLC),
1.170% due 10/01/2033+ 1,000
1,000 (Public Policy Institute of California
Project), Series A, (LOC: California State
Teachers Retirement System),
1.100% due 11/01/2031+ 1,000
Alameda County, IDR, AMT:
1,000 (Bema Electronic Manufacturing, Inc.
Project), Series A, (LOC: Comerica Bank),
1.180% due 04/01/2034+ 1,000
700 (Heat and Control Inc. Project), Series A,
(LOC: Wells Fargo Bank),
1.200% due 11/01/2025+ 700
1,000 (P.J.'s Lumber, Inc. Project),
(LOC: Comerica Bank),
1.180% due 12/01/2033+ 1,000
Bay Area Governments Association,
Federal Transit Administration Capital
Grant Revenue, (BART SFO Extension
Project), Series A, (AMBAC Insured):
100 3.375% due 06/15/2004 100
650 5.000% due 06/15/2004 653
190 California Community College Financing
Authority, Lease Revenue,
(AMBAC Insured),
3.000% due 06/01/2004 190
California State Economic Development
Financing Authority, IDR, AMT,
(LOC: Wells Fargo Bank):
100 (Calco Project), 1.300% due 04/01/2027+ 100
995 (Wesflex Pipe Manufacturing Project),
1.200% due 04/01/2018+ 995
1,200 California State, UTGO, Series C-1,
(LOC: Bank of America),
1.090% due 05/01/2033+ 1,200
California Statewide Communities
Development Authority, College &
University Revenue:
1,000 (Biola University Project), Series A,
(LOC: Allied Irish Bank PLC),
1.170% due 10/01/2032+ 1,000
500 (Masters College), (LOC: U.S. Bank),
1.070% due 02/01/2032+ 500
500 California Statewide Communities
Development Authority, Limited Obligation
Revenue, (The Painted Turtle Gang Camp
Foundation), (LOC: Allied Irish Bank PLC),
1.100% due 04/01/2033+ 500
130 Charter Oak, Unified School District, UTGO,
(Election of 2000), Series B, (FSA Insured),
2.000% due 07/01/2004 130
Principal
Amount Value
(000s) (000s)
- --------- ------
$ 170 Colton, Joint Unified School District, COP,
(MBIA Insured),
3.250% due 06/01/2004 $ 170
235 Enterprise, School District, UTGO, Series A,
(MBIA Insured),
3.000% due 03/01/2005** 238
400 Fontana, COP, (Refunding Project),
(AMBAC Insured),
3.850% due 09/01/2004 404
200 Fullerton, COP, (MBIA Insured),
3.000% due 08/01/2004 201
220 Garden Grove, Public Financing Authority,
COP, (Water Services Capital Improvement
Project), (FSA Insured),
2.000% due 12/15/2004** 221
200 Intermodal Container Transfer Facility, Joint
Powers Authority, Revenue Bonds,
(Refunding Project), Series A,
(AMBAC Insured),
4.250% due 11/01/2004 203
Irvine Ranch, Water District, UTGO:
500 (Consolidated Improvement Districts Nos.
102, 103, 105 & 106), (LOC: State Street
Bank & Trust),
1.030% due 09/01/2006+ 500
650 (Consolidated Improvement Districts Nos.
103, 105, 109, 121, 140, 161, 3(203), 221,
250, 261 & 290), Series A,
(LOC: Bank of America),
1.030% due 05/01/2009+ 650
700 Los Angeles County, Industrial Development
Authority, IDR, (Tulip Corporation Project),
Series A, AMT, (LOC: California State
Teachers Retirement System),
1.200% due 07/01/2014+,++ 700
300 Los Angeles County, Metropolitan
Transportation Authority, Sales Tax Revenue,
(Proposition C Local Allocation), Series A,
(FSA Insured),
4.100% due 07/01/2004 302
1,000 Los Angeles, Community Redevelopment
Agency, MFHR, (Views at 270 Project),
Series A, AMT, (LOC: Citibank NA),
1.180% due 09/01/2019+ 1,000
100 Los Angeles, Unified School District, COP,
(Multiple Properties Project), Series B,
(FSA Insured),
4.000% due 10/01/2004 101
1,000 Los Angeles, Wastewater System Revenue,
(Multimodal Project), Series C,
(FGIC Insured),
1.150% due 12/01/2031+ 1,000
330 Marin County, COP, (Capital Improvement
Projects), Series B, (FSA Insured),
4.000% due 08/01/2004 333
1,100 Novato, MFHR, (Nova-Ro III Senior Housing
Project), (LOC: BNP Paribas SA),
1.100% due 10/01/2032+ 1,100
300 Palmdale, Civic Authority, Sales Tax Revenue,
(Merged Redevelopment Project), Series A,
(MBIA Insured), (Pre-refunded to 09/01/2004
@ $102), 6.150% due 09/01/2024 311
See Notes to Financial Statements.
9
portfolio of investments (continued)
CALIFORNIA MONEY FUND
April 30, 2004 (unaudited)
Principal
Amount Value
(000s) (000s)
- --------- ------
MUNICIPAL BONDS AND NOTES - (continued)
California - (continued)
$ 800 Pasadena, COP, (Rose Bowl Improvements
Project), (LOC: California State Teachers
Retirement System),
1.090% due 12/01/2016+ $ 800
1,000 Rancho Mirage, Joint Powers Financing
Authority, Health Care Revenue,
(Eisenhower Medical Center Project),
Series A, (LOC: Bank of New York),
1.030% due 01/01/2026+ 1,000
200 Riverside County, Transportation Commission,
Sales Tax Revenue, Series A,
(AMBAC Insured),
5.500% due 06/01/2004 201
320 San Francisco City and County International
Airports Commission, Airport Revenue,
Second Series, Issue 15B, (FSA Insured),
4.000% due 05/01/2004 320
320 San Juan, Unified School District, UTGO,
(Election of 1998), Series B,
(MBIA Insured),
Zero coupon due 08/01/2004 319
500 San Rafael, Elementary School District,
UTGO, (Election of 2002), Series A,
(FSA Insured),
4.000% due 08/01/2004 504
185 Santa Clara County Financing Authority,
Lease Revenue, (VMC Facility Replacement
Project), Series A, (AMBAC Insured),
7.500% due 11/15/2004 191
245 Stockton, Public Financing Authority, Special
Assessment Revenue, (West Eighth Street
Reassessment District Project),
(FSA Insured),
3.000% due 09/02/2004 247
240 West Covina, COP, (Queen of the Valley
Hospital Project), (Pre-refunded to
08/15/2004 @ $102),
6.500% due 08/15/2024 249
--------
22,533
--------
Puerto Rico - 4.5%
200 Puerto Rico Commonwealth, Highway &
Transportation Authority, Highway
Revenue, Series Z, (MBIA Insured),
6.250% due 07/01/2004 202
Puerto Rico Commonwealth, UTGO,
(MBIA-IBC Insured), (Unrefunded Balance):
410 Zero coupon due 07/01/2004 409
170 5.300% due 07/01/2004 171
250 University of Puerto Rico, College &
University Revenue, (Refunding Project),
Series N, (MBIA Insured),
6.250% due 06/01/2004 251
--------
1,033
--------
Total Municipal Bonds and Notes
(Cost $23,566) 23,566
--------
Value
Shares (000s)
- ------ ------
INVESTMENT COMPANY SECURITIES - 0.2%
8,244 Dreyfus Basic California Municipal
Money Market Fund $ 8
50,000 Wells Fargo California Tax-Free
Money Market Fund 50
--------
Total Investment Company Securities
(Cost $58) 58
--------
TOTAL INVESTMENTS+++ (COST $23,624*) 102.8% 23,624
OTHER ASSETS AND LIABILITIES (Net) (2.8) (647)
----- --------
NET ASSETS 100.0% $ 22,977
===== ========
<FN>
- --------
* Aggregate cost for federal tax purposes.
** Security purchased on a when-issued basis.
+ Variable rate securities payable upon demand with not more than five
business days' notice, and secured by bank letters of credit or
guarantees by certain corporations. The interest rate shown reflects
the rate in effect at April 30, 2004.
++ Security is a private placement.
+++ All securities segregated as collateral for when-issued securities.
- ------------------------------------------------------------------------------
GLOSSARY OF TERMS
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
COP -- Certificate of Participation
FGIC -- Federal Guaranty Insurance Corporation
FSA -- Financial Security Assurance
IBC -- Insured Bond Certificate
IDR -- Industrial Development Revenue
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance
MFHR -- Multi-family Housing Revenue
UTGO -- Unlimited Tax General Obligation Bond
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
10
statements of assets and liabilities
WM GROUP OF FUNDS
April 30, 2004 (unaudited)
(In thousands)
Tax-Exempt
Money Money California
Market Market Money
Fund Fund Fund
-------- ---------- ----------
ASSETS:
Investments, at amortized cost and value $807,296 $25,379 $23,624
Interest receivable 3,285 130 100
Receivable for Fund shares sold 25,588 15 11
Receivable for investment securities sold -- 500 --
Prepaid expenses 18 1 1
-------- ------- -------
Total Assets 836,187 26,025 23,736
-------- ------- -------
LIABILITIES:
Payable for Fund shares redeemed 1,737 34 20
Payable for when-issued securities purchased 4,340 -- 459
Payable for investment securities purchased 5,000 208 248
Investment advisory fee payable 298 10 4
Shareholder servicing and distribution fees payable 27 -- --
Transfer agent fees payable 51 2 2
Dividends payable 2 --* --*
Due to custodian --* -- --
Accrued legal and audit fees 29 16 17
Accrued expenses and other payables 374 9 9
-------- ------- -------
Total Liabilities 11,858 279 759
-------- ------- -------
NET ASSETS $824,329 $25,746 $22,977
======== ======= =======
NET ASSETS consist of:
Accumulated net realized loss on investment
transactions $ (46) $ -- $ --
Paid-in capital 824,375 25,746 22,977
-------- ------- -------
Total Net Assets $824,329 $25,746 $22,977
======== ======= =======
<FN>
- --------
* Amount represents less than $500.
See Notes to Financial Statements.
11
statements of assets and liabilities (continued)
WM GROUP OF FUNDS
April 30, 2004 (unaudited)
(In thousands)
Tax-Exempt
Money Money California
Market Market Money
Fund Fund Fund
-------- ---------- ----------
NET ASSETS:
Class A Shares $681,546 $25,746 $22,977
======== ======= =======
Class B Shares $ 53,816 -- --
========
Class C Shares $ 4,437 -- --
========
Class I Shares $ 84,530 -- --
========
SHARES OUTSTANDING:
Class A Shares 681,566 25,746 23,023
======== ======= =======
Class B Shares 53,813 -- --
========
Class C Shares 4,437 -- --
========
Class I Shares 84,544 -- --
========
CLASS A SHARES:*
Net asset value, offering and redemption price
per share of beneficial interest outstanding** $ 1.00 $ 1.00 $ 1.00
======== ======= =======
CLASS B SHARES:*
Net asset value, offering and redemption price
per share of beneficial interest outstanding** $ 1.00 -- --
========
CLASS C SHARES:*
Net asset value and offering price per share
of beneficial interest outstanding** $ 1.00 -- --
========
CLASS I SHARES:*
Net asset value, offering and redemption price
per share of beneficial interest outstanding $ 1.00 -- --
========
<FN>
- --------
* Net asset value and maximum offering price are not shown in thousands.
** Redemption price per share is equal to net asset value per share less
any applicable contingent deferred sales charge.
See Notes to Financial Statements.
12
statements of operations
WM GROUP OF FUNDS
For the Six Months Ended April 30, 2004 (unaudited)
(In thousands)
Tax-Exempt
Money Money California
Market Market Money
Fund Fund Fund
-------- ---------- ----------
INVESTMENT INCOME:
Interest $4,627 $146 $126
------ ---- ----
EXPENSES:
Investment advisory fee 1,806 61 54
Custodian fees 16 1 1
Legal and audit fees 21 15 15
Registration and filing fees 29 7 4
Printing and postage expenses 149 6 7
Other 83 7 4
Shareholder servicing and distribution fees:
Class B Shares 321 -- --
Class C Shares 22 -- --
Transfer agent fees:
Class A Shares 179 10 12
Class B Shares 60 -- --
Class C Shares 4 -- --
------ ---- ----
Total expenses 2,690 107 97
Fees waived by the investment advisor
and/or the distributor (207) -- (27)
Fees reduced by custodian credits (1) --* --*
------ ---- ----
Net expenses 2,482 107 70
------ ---- ----
NET INVESTMENT INCOME 2,145 39 56
------ ---- ----
NET REALIZED GAIN ON
INVESTMENT TRANSACTIONS --* -- --
------ ---- ----
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $2,145 $ 39 $ 56
====== ==== ====
<FN>
- --------
*Amount represents less than $500.
See Notes to Financial Statements.
13
statements of changes in net assets
WM GROUP OF FUNDS
For the Six Months Ended April 30, 2004 (unaudited)
(In thousands)
Tax-Exempt
Money Money California
Market Market Money
Fund Fund Fund
-------- ---------- ----------
Net investment income $ 2,145 $ 39 $ 56
Net realized gain on investment transactions --* -- --
--------- ------- -------
Net increase in net assets resulting from operations 2,145 39 56
Distributions to shareholders from net investment income:
Class A Shares (1,977) (39) (56)
Class B Shares (16) -- --
Class C Shares (1) -- --
Class I Shares (151) -- --
Net increase/(decrease) in net assets from Fund share transactions:
Class A Shares (26,411) (4,416) (1,753)
Class B Shares (25,496) -- --
Class C Shares (609) -- --
Class I Shares 59,651 -- --
--------- ------- -------
Net increase/(decrease) in net assets 7,135 (4,416) (1,753)
NET ASSETS:
Beginning of period 817,194 30,162 24,730
--------- ------- -------
End of period $ 824,329 $25,746 $22,977
========= ======= =======
For the Year Ended October 31, 2003
Net investment income $ 6,191 $ 160 $ 132
Net realized gain/(loss) on investment transactions --* --* --
--------- ------- -------
Net increase in net assets resulting from operations 6,191 160 132
Distributions to shareholders from net investment income:
Class A Shares (5,447) (160) (132)
Class B Shares (49) -- --
Class C Shares (3) -- --
Class I Shares (692) -- --
Net increase/(decrease) in net assets from Fund share transactions:
Class A Shares 18,955 (3,138) (2,942)
Class B Shares (25,219) -- --
Class C Shares 1,370 -- --
Class I Shares (144,414) -- --
--------- ------- -------
Net decrease in net assets (149,308) (3,138) (2,942)
NET ASSETS:
Beginning of year 966,502 33,300 27,672
--------- ------- -------
End of year $ 817,194 $30,162 $24,730
========= ======= =======
<FN>
- --------
*Amount represents less than $500.
See Notes to Financial Statements.
14
statements of changes in net assets -- capital stock activity
WM GROUP OF FUNDS
(In thousands)
Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown below for such transactions.
Money Market Fund Tax-Exempt Money Market Fund California Money Fund
------------------------ ---------------------------- ------------------------
Six Months Six Months Six Months
Ended Ended Ended
04/30/04 Year Ended 04/30/04 Year Ended 04/30/04 Year Ended
(unaudited) 10/31/03 (unaudited) 10/31/03 (unaudited) 10/31/03
----------- ---------- ----------- ---------- ----------- ----------
Class A:
Sold $ 196,151 $ 540,768 $ 12,242 $ 40,843 $ 14,669 $ 31,012
Issued as reinvestment of dividends 1,811 4,207 38 155 56 132
Redeemed (224,373) (526,020) (16,696) (44,136) (16,478) (34,086)
--------- --------- -------- -------- -------- --------
Net increase/(decrease) $ (26,411) $ 18,955 $ (4,416) $ (3,138) $ (1,753) $ (2,942)
========= ========= ======== ======== ======== ========
Class B:
Sold $ 10,148 $ 72,301 -- -- -- --
Issued as reinvestment of dividends 15 46 -- -- -- --
Redeemed (35,659) (97,566) -- -- -- --
--------- ---------
Net decrease $ (25,496) $ (25,219) -- -- -- --
========= =========
Class C:
Sold $ 4,052 $ 13,554 -- -- -- --
Issued as reinvestment of dividends 1 2 -- -- -- --
Redeemed (4,662) (12,186) -- -- -- --
--------- ---------
Net increase/(decrease) $ (609) $ 1,370 -- -- -- --
========= =========
Class I:
Sold $ 67,500 $ 43,936 -- -- -- --
Issued as reinvestment of dividends 151 692 -- -- -- --
Redeemed (8,000) (189,042) -- -- -- --
--------- ---------
Net increase/(decrease) $ 59,651 $(144,414) -- -- -- --
========= =========
See Notes to Financial Statements.
15
financial highlights
For a Fund share outstanding throughout each period.
Net Dividends
Asset Value, Net from Net Net
Beginning of Investment Investment Asset Value,
Period Income Income End of Period
------------ ---------- ---------- -------------
MONEY MARKET FUND
Class A
04/30/04 (unaudited) $1.00 $0.003 $(0.003) $1.00
10/31/03 1.00 0.008 (0.008) 1.00
10/31/02 1.00 0.014 (0.014) 1.00
10/31/01 1.00 0.043 (0.043) 1.00
10/31/00 1.00 0.056 (0.056) 1.00
10/31/99 1.00 0.044 (0.044) 1.00
Class B
04/30/04 (unaudited) 1.00 0.000(4) (0.000)(4) 1.00
10/31/03 1.00 0.001 (0.001) 1.00
10/31/02 1.00 0.003 (0.003) 1.00
10/31/01 1.00 0.033 (0.033) 1.00
10/31/00 1.00 0.046 (0.046) 1.00
10/31/99 1.00 0.034 (0.034) 1.00
Class C
04/30/04 (unaudited) 1.00 0.000(4) (0.000)(4) 1.00
10/31/03 1.00 0.001 (0.001) 1.00
10/31/02(3) 1.00 0.002 (0.002) 1.00
Class I
04/30/04 (unaudited) 1.00 0.003 (0.003) 1.00
10/31/03 1.00 0.008 (0.008) 1.00
10/31/02 1.00 0.015 (0.015) 1.00
10/31/01 1.00 0.044 (0.044) 1.00
10/31/00 1.00 0.057 (0.057) 1.00
10/31/99 1.00 0.046 (0.046) 1.00
TAX-EXEMPT MONEY MARKET FUND
Class A
04/30/04 (unaudited) $1.00 $0.001 $(0.001) $1.00
10/31/03 1.00 0.005 (0.005) 1.00
10/31/02 1.00 0.010 (0.010) 1.00
10/31/01 1.00 0.025 (0.025) 1.00
10/31/00 1.00 0.033 (0.033) 1.00
10/31/99 1.00 0.026 (0.026) 1.00
CALIFORNIA MONEY FUND
Class A
04/30/04 (unaudited) $1.00 $0.002 $(0.002) $1.00
10/31/03 1.00 0.005 (0.005) 1.00
10/31/02 1.00 0.009 (0.009) 1.00
10/31/01 1.00 0.023 (0.023) 1.00
10/31/00 1.00 0.028 (0.028) 1.00
10/31/99 1.00 0.022 (0.022) 1.00
<FN>
- --------
(1) Total return is not annualized for periods less than one year and does not
reflect any applicable sales charges. The total returns would have been
lower if certain fees had not been waived and expenses reimbursed by the
investment advisor and/or the distributor or if fees had not been reduced
by credits allowed by the custodian.
(2) Ratio of operating expenses to average net assets includes expenses paid
indirectly.
(3) The Money Market Fund commenced selling Class C shares on March 1, 2002.
(4) Amount represents less than $0.001 per share.
(5) Annualized.
See Notes to Financial Statements.
16
Ratios to Average Net Assets/Supplemental Data
---------------------------------------------------------------------------------
Ratio of Operating
Expenses to Average Net
Ratio of Ratio of Assets Without Fee Waivers,
Operating Net Investment Expenses Reimbursed
Net Assets, Expenses to Income to and Fees Reduced by
Total End of Period Average Net Average Net Credits Allowed by the
Return(1) (in 000's) Assets Assets Custodian(2)
--------- ------------- ------------ -------------- ---------------------------
MONEY MARKET FUND
Class A
04/30/04 (unaudited) 0.29% $681,546 0.58%(5) 0.58%(5) 0.58%(5)
10/31/03 0.78% 707,954 0.59% 0.78% 0.59%
10/31/02 1.42% 689,002 0.59% 1.41% 0.59%
10/31/01 4.40% 647,951 0.64% 4.21% 0.64%
10/31/00 5.79% 458,368 0.65% 5.62% 0.65%
10/31/99 4.52% 460,444 0.72% 4.43% 0.73%
Class B
04/30/04 (unaudited) 0.02% 53,816 1.11%(5) 0.05%(5) 1.71%(5)
10/31/03 0.05% 79,314 1.33% 0.04% 1.71%
10/31/02 0.34% 104,530 1.67% 0.33% 1.67%
10/31/01 3.32% 74,603 1.69% 3.16% 1.69%
10/31/00 4.68% 23,469 1.71% 4.56% 1.71%
10/31/99 3.44% 20,452 1.77% 3.38% 1.78%
Class C
04/30/04 (unaudited) 0.02% 4,437 1.11%(5) 0.05%(5) 1.71%(5)
10/31/03 0.06% 5,046 1.29% 0.08% 1.67%
10/31/02(3) 0.17% 3,676 1.64%(5) 0.36%(5) 1.64%(5)
Class I
04/30/04 (unaudited) 0.31% 84,530 0.52%(5) 0.64%(5) 0.52%(5)
10/31/03 0.84% 24,880 0.54% 0.83% 0.54%
10/31/02 1.47% 169,295 0.54% 1.46% 0.54%
10/31/01 4.46% 17,755 0.58% 4.27% 0.58%
10/31/00 5.90% 15,885 0.55% 5.72% 0.55%
10/31/99 4.66% 102,760 0.62% 4.53% 0.63%
TAX-EXEMPT MONEY MARKET FUND
Class A
04/30/04 (unaudited) 0.14% $25,746 0.78%(5) 0.29%(5) 0.78%(5)
10/31/03 0.52% 30,162 0.67% 0.53% 0.79%
10/31/02 1.00% 33,300 0.67% 0.99% 0.78%
10/31/01 2.57% 31,527 0.74% 2.52% 0.74%
10/31/00 3.39% 28,596 0.72% 3.33% 0.88%
10/31/99 2.65% 31,353 0.57% 2.63% 0.89%
CALIFORNIA MONEY FUND
Class A
04/30/04 (unaudited) 0.23% $22,977 0.58%(5) 0.47%(5) 0.81%(5)
10/31/03 0.50% 24,730 0.63% 0.50% 0.80%
10/31/02 0.89% 27,673 0.63% 0.89% 0.70%
10/31/01 2.32% 42,558 0.62% 2.27% 0.70%
10/31/00 2.79% 35,407 0.69% 2.76% 0.69%
10/31/99 2.24% 34,216 0.81% 2.22% 0.81%
See Notes to Financial Statements.
17
notes to financial statements (unaudited)
WM GROUP OF FUNDS
1. Organization and Business
WM Trust I ("Trust I") and WM Trust II ("Trust II") (collectively, the
"Trusts") were organized as Massachusetts business trusts on September 19,
1997 and February 22, 1989, respectively. The Trusts are registered under
the Investment Company Act of 1940 (the "1940 Act"), as open-end management
investment companies. The Money Market Fund and Tax-Exempt Money Market Fund
are diversified series of WM Trust I. The California Money Fund is a
non-diversified series of WM Trust II. Information presented in this report
pertains only to the three named "Funds". Financial statements for the other
funds included in the Trusts are presented in a separate report. WM
Advisors, Inc. (the "Advisor" or "WM Advisors") serves as investment advisor
to the Funds. The Advisor is a wholly-owned subsidiary of Washington Mutual,
Inc. ("Washington Mutual"), a publicly owned financial services company.
The Trusts are authorized to issue an unlimited number of shares of
beneficial interest, each without par value. Each Fund may offer four
classes of shares: Class A shares, Class B shares, Class C shares and Class
I shares. Class A and Class I shares are not subject to an initial sales
charge or, generally, to a contingent deferred sales charge ("CDSC").
Certain Class A shares purchased by exchange from another fund within the
Trusts may be subject to a CDSC if redeemed within eighteen months from the
date of purchase. Class B shares are not subject to an initial sales charge
although they are generally subject to a CDSC if redeemed within five years
from the date of purchase. Class C shares are not subject to an initial
sales charge although they are subject to a CDSC if redeemed within one year
from the date of purchase. Prior to January 1, 2004, Class C shares were
subject to an initial sales charge at the time of purchase. Class I shares
are currently only offered to the WM Strategic Asset Management Portfolios,
LLC, an open-end management investment company, and affiliates of Washington
Mutual, and are not available for direct purchase by investors. The
Tax-Exempt Money Market and California Money Funds are not currently
offering Class B, Class C or Class I shares.
2. Significant Accounting Policies
The following is a summary of significant accounting policies, in conformity
with accounting principles generally accepted in the United States of
America ("generally accepted accounting principles"), which are consistently
followed by the Funds in the preparation of their financial statements.
Portfolio valuation:
Securities are valued on the basis of amortized cost in accordance with Rule
2a-7 of the 1940 Act, which approximates market value. Amortized cost
valuation involves initially valuing an instrument at its cost and
thereafter assuming a constant amortization to maturity of any discount or
premium, as long as the amortized cost fairly reflects the market-based net
asset value per share. Certain assets may be valued by the Advisor under the
supervision of the Board of Trustees.
Repurchase agreements:
Each Fund may enter into repurchase agreement transactions. A repurchase
agreement is a purchase of an underlying debt obligation subject to an
agreement by the seller to repurchase the obligation at an agreed upon price
and time. The value of the collateral is at all times at least equal to the
total amount of the repurchase obligation. In the event of counterparty
default, the Fund would seek to use the collateral to offset losses
incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its right to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. WM Advisors, acting under the supervision of the Board of Trustees,
reviews the value of the collateral and the creditworthiness of those banks
and broker-dealers with whom each Fund enters into repurchase agreements.
Illiquid investments:
Each Fund may invest a portion of its net assets in securities that are not
readily marketable, including: (1) repurchase agreements with maturities
greater than seven calendar days; (2) time deposits maturing in more than
seven calendar days; (3) certain futures contracts and options; (4) certain
variable rate demand notes having a demand period of more than seven days;
and (5) securities, the disposition of which are restricted under Federal
securities laws, excluding certain Rule 144A securities, as defined in the
following paragraph.
Illiquid securities generally cannot be sold or disposed of in the ordinary
course of business (within seven days) at approximately the value at which
the Funds have valued the investments. This may have an adverse effect on
the Fund's ability to dispose of particular illiquid securities at fair
market value and may limit the Fund's ability to obtain accurate market
quotations for purposes of valuing the securities and calculating the net
asset value of shares of the Fund. The Funds may also purchase securities
that are not registered under the Securities Act of 1933, as amended (the
"Act"), but that can be sold to
18
notes to financial statements (unaudited) (continued)
WM GROUP OF FUNDS
qualified institutional buyers in accordance with Rule 144A under the Act
("Rule 144A Securities"). Rule 144A Securities generally may be resold only
to other qualified institutional buyers. If a particular investment in Rule
144A Securities is not determined to be liquid under the guidelines
established by the Board of Trustees, that investment will be subject to a
Fund's limitation on investments in illiquid securities.
Securities transactions and investment income:
Securities transactions are recorded on a trade date basis (the date the
order to buy or sell is executed). Realized gains and losses from securities
sold are recorded on the identified cost basis. Securities purchased or sold
on a when-issued or delayed-delivery basis may be settled a month or more
after the trade date; interest income is not accrued until settlement date.
Each Fund instructs the custodian to segregate assets of the Fund with a
current value at least equal to the amount of its when-issued purchase
commitments.
Interest income on debt securities is accrued daily. Premiums and discounts
are amortized using the interest method. Dividend income is recorded on the
ex-dividend date. Each Fund's investment income and realized and unrealized
gains and losses are allocated among the classes of that Fund based upon the
relative average net assets of each class.
Dividends and distributions to shareholders:
Dividends from net investment income of the Funds are declared daily and
paid monthly. Distributions of any net capital gains earned by a Fund are
distributed no less frequently than annually at the discretion of the Board
of Trustees. Additional distributions of net investment income and capital
gains for each Fund may be made at the discretion of the Board of Trustees
in accordance with federal income tax regulations.
Distributions from income and capital gains are determined in accordance
with income tax regulations, which may differ from generally accepted
accounting principles. These differences are primarily due to timing
differences and differing characterizations of distributions made by each
Fund.
Federal income taxes:
It is each Fund's policy to qualify as a regulated investment company by
complying with the requirements of the Internal Revenue Code of 1986, as
amended, applicable to regulated investment companies and by distributing
substantially all of its earnings to its shareholders. Therefore, no federal
income or excise tax provision is required.
Expenses:
General expenses of the Trusts are allocated to all the Funds based upon the
relative average net assets of each Fund except printing and postage
expenses, which are allocated to all the Funds based upon the relative
number of shareholder accounts of each Fund. Operating expenses directly
attributable to a class of shares are charged to the operations of that
class of shares. Expenses of each Fund not directly attributable to the
operations of any class of shares are prorated among the classes to which
the expenses relate based on the relative average net assets of each class
of shares.
Use of estimates:
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
3. Investment Advisory and Other Transactions
WM Advisors serves as investment advisor to the Funds. The Advisor is
entitled to a monthly fee at an annual rate based upon a percentage of the
average daily net assets of each Fund at the following rates:
Fees on Net Assets
Exceeding
Fees on Net Assets $500 million and Fees on Net Assets
up to Equal to or Less Than Exceeding
Name of Fund $500 million $1 billion $1 billion
- ------------ ------------ ---------- ----------
Money Market Fund 0.45% 0.45% 0.40%
Tax-Exempt Money Market Fund 0.45% 0.45% 0.40%
California Money Fund 0.45% 0.40% 0.40%
The Advisor has voluntarily waived $27,472 of its advisory fees for the
California Money Fund for the six months ended April 30, 2004.
19
notes to financial statements (unaudited) (continued)
WM GROUP OF FUNDS
WM Shareholder Services, Inc. (the "Transfer Agent"), a wholly-owned
subsidiary of Washington Mutual, serves as the transfer agent of the Funds.
Fees were paid to the Transfer Agent for services related to the issuance
and transfer of shares, maintaining shareholder lists, and issuing and
mailing distributions and reports. The authorized annual shareholder
servicing fee is $24.19 for Class A, Class B and Class C shareholder
accounts. Prior to December 1, 2003, the authorized annual shareholder
servicing fee was $25.01 for Class A, Class B and Class C shareholder
accounts. Class I shares are not subject to shareholder servicing fees.
Custodian fees for certain Funds have been reduced by credits allowed by the
Fund's custodian for uninvested cash balances. The Funds could have invested
this cash in income producing securities. Fees reduced by credits allowed by
the custodian for the six months ended April 30, 2004 are shown separately
in the "Statements of Operations".
4. Trustees' Fees
No officer or employee of Washington Mutual or its subsidiaries receives any
compensation from the Trusts for serving as an officer or Trustee of the
Trusts. The Trusts, together with other mutual funds advised by WM Advisors,
pay each Trustee who is not an officer or employee of Washington Mutual or
its subsidiaries, a per annum retainer plus attendance fees for each meeting
at which they are present. The Lead Trustee, Committee Chairs and Committee
Members receive additional remuneration for these services to the Trusts.
Trustees are also reimbursed for travel and out-of-pocket expenses. Each
Trustee serves in the same capacity for all 41 funds within the WM Group of
Funds.
5. Distribution Plans
WM Funds Distributor, Inc. (the "Distributor"), a registered broker-dealer
and a wholly-owned subsidiary of Washington Mutual, serves as distributor
for Class A, Class B and Class C shares. For the six months ended April 30,
2004, the Distributor has received no commissions (front-end sales charges)
on Class C shares and $269,531 representing CDSCs on Class A, Class B and
Class C shares.
Each of the Funds has adopted three distribution plans, pursuant to Rule
12b-1 under the 1940 Act, applicable to Class A, Class B and Class C shares
of the Fund (each, a "Rule 12b-1 Plan"), respectively. There are no 12b-1
Plans applicable to the Class I shares of the Funds. Under the applicable
Rule 12b-1 Plans, the Distributor may receive a service fee at an annual
rate of 0.25% of the average daily net assets of each class. The Trustees
have not authorized, and the Funds do not currently pay, service fees with
respect to Class A shares. In addition to a service fee, the Distributor is
paid a fee as compensation in connection with the offering and sale of Class
B and Class C shares at an annual rate of 0.75% of the average daily net
assets of each class. These fees may be used to cover the expenses of the
Distributor primarily intended to result in the sale of such shares,
including payments to the Distributor's representatives or others for
selling shares. The service fee is paid by the Fund to the Distributor,
which in turn, pays service fees to broker/dealers that provide services,
such as accepting telephone inquiries and transaction requests and
processing correspondence, new account applications and subsequent purchases
for the shareholders. Under their terms, each Rule 12b-1 plan shall remain
in effect from year to year, provided such continuance is approved annually
by vote of the Board of Trustees, including a majority of those Trustees who
are not "interested persons" of the Trusts, as defined in the 1940 Act, and
who have no direct or indirect financial interest in the operation of such
distribution plans, or any agreements related to such plans, respectively.
The Distributor has voluntarily waived $193,929 and $13,166 of its
distribution fees for Class B and Class C shares of the Money Market Fund
for the six months ended April 30, 2004, respectively.
6. Geographic and Industry Concentration Risk Factors
There are certain risks arising from the concentration of the California
Money Fund's investments in California municipal securities. The California
Money Fund is more susceptible to factors adversely affecting issuers of
California municipal securities than a fund that is not concentrated in
these issuers to the same extent. Uncertain economic conditions or
governmental developments may affect the ability of California municipal
securities issuers to meet their financial obligations.
7. Proxy Voting Information
A description of the policies and procedures that the Trusts use to
determine how to vote proxies relating to portfolio securities held by the
Fund is available, without charge and upon request, by calling
1-800-222-5852. This information is also available from the EDGAR database
or the Securities and Exchange Commission's internet site at
http://www.sec.gov.
20
Before investing, you should carefully consider a
fund's investment objectives, risks, charges, and
expenses. Contact your Investment Representative
or call 800-222-5852 to obtain a prospectus
containing this and other information. Read the
prospectus carefully before investing.
This Semi-Annual Report is published for the general information
of the shareholders of the WM Group of Funds. It is authorized
for distribution to prospective investors only when preceded or
accompanied by a current WM Group of Funds prospectus. A
mutual fund's share price and investment return will vary with
market conditions, and the principal value of an investment when
you sell your shares may be more or less than the original cost.
The WM Group of Funds are not insured by the FDIC. They are
not deposits or obligations of, nor are they guaranteed by, any
bank. These securities are subject to investment risk, including
possible loss of principal amount invested.
Distributed by:
WM Funds Distributor, Inc.
Member NASD
- ----------------------------------------------------------------------------
[logo]WM P R S R T S T D
GROUPofFUNDS U.S. POSTAGE
PAID
P.O. Box 9757 N. READING, MA
Providence, RI 02940-9757 PERMIT #105
[logo]Printed on recycled paper
WMMMSAR (6/29/04)
Item 2. Code of Ethics.
Not applicable for this filing.
Item 3. Audit Committee Financial Expert.
Not applicable for this filing.
Item 4. Principal Accountant Fees and Services.
Not applicable for this filing.
Item 5. Audit Committee of Listed Registrants
Not applicable for this filing.
Item 6. Schedule of Investments.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. 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.
None.
Item 10. Controls and Procedures:
(a) The registrant's principal executive officer and principal financial
officer have concluded, based on their evaluation of the effectiveness of
the design and operation of the registrant's disclosure controls and
procedures as of a date within 90 days of the filing date of this report on
Form N-CSR, that the design and operation of such procedures are effective
to provide reasonable assurance that information required to be disclosed by
the registrant in the reports that it files or submits on Form N-CSR is
recorded, processed, summarized, and reported within the time periods
specified in the SEC's rules and forms.
(b) There have been no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940, as amended) that occurred during the registrant's last
fiscal half-year that have materially affected, or are reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
WM Trust II
By: /s/ William G. Papesh
---------------------
William G. Papesh
President and Chief Executive Officer
July 2, 2004
SIGNATURES
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.
WM Trust II
By: /s/ Jeffery L. Lunzer
----------------------
Jeffery L. Lunzer
Treasurer and Chief Financial Officer
July 2, 2004
By: /s/ William G. Papesh
----------------------
William G. Papesh
President and Chief Executive Officer
July 2, 2004