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 811-08749
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The Capstone Social Ethics & Religious Values Fund
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(Exact name of registrant as specified in charter)
5847 San Felipe, Suite 4100 Houston, TX 77057
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(Address of principal executive offices) (Zip code)
InCap Service Company, Willow Grove, PA 19090-1904
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(Name and address of agent for service)
Registrant's telephone number, including area code: 954-217-7999
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Date of fiscal year end: 09/30/2004
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Date of reporting period: 03/31/2004
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREHOLDERS
Dear Shareholder:
We are pleased to present the semi-annual report for the Capstone Social Ethics
and Religious Values Fund for the six-month period that ended on March 31, 2004.
EQUITY MARKET OVERVIEW
The equity market continued its advance for the six month period that ended on
March 31, 2004. While equity returns for the period were positive, volatility
within the period also increased. This is a constant reminder that geopolitical
events such as the ongoing turmoil in Iraq along with various terrorist
activities can directly impact the equity markets. The improving economy has
provided the underlying basis for the market's strength. Company earnings have
been showing consistent improvement over the period with reports for the first
quarter of 2004 indicating particularly strong growth overall. Weak job creation
which has plagued this economic recovery has finally shown some strength with
the release of the March payroll employment report. While this is welcome news,
it has been mitigated somewhat with higher energy prices and the inevitable
threat of rising interest rates which usually follows a period when the Federal
Reserve has been very accommodative. For the six month period, the broad-based
capitalization weighted Standard & Poor's 1500 Supercomposite Index was up
14.76%.
PERFORMANCE
The SERV Large Cap Equity Fund returned 12.68% for Class A and 12.86% for Class
C for the six-month period. The return for the S&P 500 for the same period was
14.08%. The lower performance relative to the S&P 500 is primarily due to the
socially responsible investment policies of the Fund which avoids investing in
companies whose primary business is associated with alcohol, caffeinated
beverages, tobacco products, meat packing, gambling and pornography ("Restricted
Industries"). For the six-month period, the following Restricted Industries in
the Index substantially outperformed the S&P 500: Casinos & Gaming 50.22% and
Tobacco 27.12%. Compensating for a specific industry or company whose total
return deviates dramatically from the overall Index is extremely difficult
regardless of its weight within that Index. The impact of the omission of these
Restricted Industries on the Fund reduced its return relative to the S&P 500.
The SERV Small Cap Equity Fund returned 20.42% for Class A and 20.61% for Class
C for the six-month period. The return for the S&P Small Cap 600 for the same
period was 21.94%. The lower performance relative to the S&P Small Cap 600 is
primarily due to the socially responsible investment policies of the Fund which
avoids investing in Restricted Industries. For the six-month period, the Casinos
& Gaming industry (a Restricted Industry) of the S&P Small Cap 600 substantially
outperformed the Index with a return of 49.48%. Compensating for a specific
industry or company whose total returndeviates dramatically from the overall
Index is extremely difficult regardless of its weight within that Index. The
impact of the omission of these Restricted Industries on the Fund reduced its
return relative to the S&P Small Cap 600.
The SERV International Fund returned 19.38% for Class A and 19.61% for Class C
for the six-month period. The return for the MSCI EAFE Index for the same period
was 22.31%. The lower performance relative to the MSCI EAFE Index is primarily
due to the socially responsible investment policies of the Fund which avoids
investing in Restricted Industries. For the six-month period, tobacco companies
(a Restricted Industry) such as British American Tobacco PLC substantially
outperformed the Index with a return of 43.91%. Alcohol related companies
(another Restricted Industry) such as Kirin Brewery Co. also handily
outperformed the Index with a return of 40.04%. Compensating for a specific
industry or company whose total return
deviates dramatically from the overall Index is extremely difficult regardless
of its weight within that Index. The performance of Restricted Industries such
as these reduced the return of the Fund relative to the MSCI EAFE Index.
FIXED INCOME FUNDS
The domestic fixed income markets were characterized by increased volatility,
but overall stability, during the six-month period that ended March 31, 2004.
U.S. interest rates hardly changed during this period for all maturities, with
the bellwether ten-year Treasury note starting and ending at about 3.90% yield
to maturity. While still at historically low levels, nominal rates are
consistent with an accommodative monetary policy being employed by the Federal
Reserve Board. Continued economic growth and the prospect of price inflation
returning to the economic landscape may cause the Federal Reserve Board
policymakers to raise short-term interest after their long decline over the past
few years. If and when the Federal Reserve takes such action, U.S. interest
rates will rise and bond prices will decline.
The SERV Bond Fund returned 2.68% for Class A and 2.80% for Class C for the
six-month period ending March 31, 2004, net of fund expenses of approximately
0.42% and 0.30%, respectively. The return for the Lehman Brothers
Government/Credit index for the same period was 3.05%. The best performing
sectors during this time were the total returns of bonds issued by utility and
industrial companies, and the worst performing sector of the index was U. S.
Treasury securities. Lower credit rated issues outperformed higher credit rated
securities in the index as investors pushed the yield spreads of higher yielding
securities toward lower yielding securities in an effort to increase current
income of portfolios. The SERV Short-term Fund returned 1.01% for Class A and
1.11% for Class C for the six-month period ending March 31, 2004, net of fund
expenses of approximately 0.44% and 0.31%, respectively. The return for the
Merrill Lynch one to three year Treasury index and the customized index for this
fund were 1.15% and 1.44%, respectively.
We welcome your comments or your questions about this report or any of the
services that we provide. We sincerely appreciate your trust and confidence in
us and look forward to continuing our relationship with you for many years to
come.
Sincerely,
/s/ Edward L. Jaroski /s/ Dan E. Watson
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Edward L. Jaroski Dan E. Watson
President and Chairman of the Board Executive Vice President
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SHORT-TERM BOND FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
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PRINCIPAL VALUE
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AGENCY OBLIGATIONS (32.24%)
FEDERAL HOME LOAN BANK (23.05%)
2.625%, 02/16/07 $ 750,000 $ 755,744
2.65%, 12/29/06 2,000,000 2,002,490
2.875%, 09/15/06 500,000 510,469
3.00%, 08/15/05 1,000,000 1,020,017
3.95%, 02/14/05 1,000,000 1,023,613
4.125%, 05/13/05 1,000,000 1,031,030
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6,343,363
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FHLMC - SINGLE FAMILY (9.19%)
2.375%, 4/15/06 + 2,500,000 2,530,195
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TOTAL AGENCY OBLIGATIONS (Cost $8,828,085) 8,873,558
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CORPORATE BONDS (32.36%)
BANKS (7.82%)
Bank of America Corp., 4.75%, 10/15/06 750,000 797,174
Bank One Corp., 7.625%, 08/01/05 750,000 808,960
MBNA Corp., 6.25%, 01/17/07 500,000 547,640
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2,153,774
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COMPUTER HARDWARE (2.90%)
Hewlett-Packard Co., 7.15%, 06/15/05 750,000 798,047
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DIVERSIFIED FINANCIAL SERVICES (6.94%)
General Electric Capital Corp., 6.80%, 11/01/05 1,000,000 1,079,131
Household Finance Corp., 7.20%, 07/15/06 750,000 832,674
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1,911,805
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INSURANCE (5.92%)
AON Corp., 6.70%, 01/15/07 500,000 553,562
International Lease Finance Corp., 5.65%, 08/15/06 1,000,000 1,074,877
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1,628,439
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MINING (3.90%)
Alcoa, Inc., 7.25%, 08/01/05 1,000,000 1,073,415
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MULTIMEDIA (1.96%)
Time Warner, Inc., 6.125%, 04/15/06 500,000 538,709
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RETAIL STORES (2.92%)
May Department Stores Co., 6.875%, 11/01/05 750,000 803,969
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TOTAL CORPORATE BONDS (Cost $8,824,495) 8,908,158
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CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SHORT-TERM BOND FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
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PRINCIPAL VALUE
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U.S. TREASURY OBLIGATIONS (31.99%)
U.S. TREASURY NOTES (31.99%)
1.625%, 04/30/05 $ 500,000 $ 502,403
2.375%, 08/15/06 + 2,000,000 2,029,454
2.625%, 11/15/06 + 3,000,000 3,059,064
6.50%, 08/15/05 + 3,000,000 3,213,048
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TOTAL U.S. TREASURY OBLIGATIONS (Cost $8,699,385) 8,803,969
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SHORT TERM INVESTMENTS (38.80%)
Deutsche Bank Tri-Part Agency Repurchase Agreement, 1.06%, 04/01/04 # 10,049,875 10,049,875
Fifth Third Institutional Government Money Market Fund, 0.79% ** 630,517 630,517
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TOTAL SHORT TERM INVESTMENTS (Cost $10,680,392) 10,680,392
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TOTAL INVESTMENTS (Cost $37,032,357) (135.39%) $ 37,266,077
LIABILITIES IN EXCESS OF OTHER ASSETS (-35.39%) (9,740,567)
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NET ASSETS (100%) $ 27,525,510
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Cost for federal income tax at March 31, 2004 was $37,032,357 and net unrealized
appreciation consisted of:
Gross unrealized appreciation $ 241,052
Gross unrealized depreciation (7,332)
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Net unrealized appreciation $ 233,720
============
** Rate shown represents the rate at March 31, 2004, is subject to change and
resets daily.
# Represents investment of cash received as collateral for securities on loan.
+ Portion or all of this security is on loan.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
BOND FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
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PRINCIPAL VALUE
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AGENCY OBLIGATIONS (18.16%)
FANNIE MAE (8.35%)
4.375%, 03/15/13 $ 1,000,000 $ 1,018,736
5.00%, 01/15/07 1,000,000 1,076,538
5.50%, 05/02/06 250,000 268,612
6.00%, 05/15/08 1,500,000 1,686,490
6.375%, 06/15/09 1,300,000 1,497,989
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5,548,365
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FEDERAL FARM CREDIT BANK (1.47%)
4.25%, 06/18/18 1,000,000 979,630
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FEDERAL HOME LOAN BANK (3.99%)
4.50%, 08/14/09 1,500,000 1,586,058
5.125%, 03/06/06 1,000,000 1,064,720
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2,650,778
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FREDDIE MAC (4.35%)
3.875%, 02/15/05 1,000,000 1,023,122
5.25%, 11/05/12 500,000 518,352
6.375%, 08/01/11 1,250,000 1,350,223
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2,891,697
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TOTAL AGENCY OBLIGATIONS (Cost $11,347,108) 12,070,470
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CORPORATE BONDS (36.69%)
AEROSPACE/DEFENSE (1.58%)
Boeing Capital Corp., 6.50%, 02/15/12 640,000 721,377
Lockheed Martin Corp., 7.25%, 05/15/06 150,000 165,294
McDonnell Douglas Corp., 6.875%, 11/01/06 150,000 165,911
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1,052,582
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AGRICULTURAL BIOTECHNOLOGY (0.27%)
Pharmacia Corp., 6.75%, 12/15/27 150,000 176,202
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AIRLINES (0.19%)
AMR Corp., 9.00%, 08/01/12 + 150,000 127,875
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AUTO PARTS & EQUIPMENT (1.44%)
AutoZone, Inc., 4.375%, 06/01/13 650,000 626,422
AutoZone, Inc., 6.50%, 07/15/08 150,000 166,090
TRW, Inc., 7.625%, 03/15/06 150,000 164,383
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956,895
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AUTOMOBILE MANUFACTURERS (0.24%)
DaimlerChrysler NA Holding Corp., 7.40%, 01/20/05 150,000 156,802
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CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
BOND FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
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PRINCIPAL VALUE
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BANKS (6.99%)
ABN Amro Bank, 7.55%, 06/28/06 $ 150,000 $ 169,245
Bank of America Corp., 4.875%, 09/15/12 + 500,000 519,204
Bank of America Corp., 7.80%, 02/15/10 150,000 182,124
Bank One Corp., 7.60%, 05/01/07 150,000 171,195
BankBoston NA, 6.375%, 04/15/08 150,000 169,125
Deutsche Bank Financial, Inc., 6.70%, 12/13/06 150,000 166,527
Dresdner Bank AG, 6.625%, 09/15/05 150,000 160,276
Dresdner Bank AG, 7.25%, 09/15/15 500,000 594,913
J.P. Morgan Chase & Co., 6.75%, 02/01/11 150,000 174,911
KeyCorp, 7.50%, 06/15/06 150,000 166,934
KFW International Finance, 4.75%, 01/24/07 175,000 187,775
National City Corp., 5.75%, 02/01/09 150,000 166,368
Southtrust Bank NA, 6.125%, 01/09/28 150,000 169,880
SunTrust Banks, Inc., 7.375%, 07/01/06 150,000 167,349
Swiss Bank Corp. NY, 7.00%, 10/15/15 650,000 783,065
Wachovia Corp., 6.605%, 10/01/25 150,000 170,544
Wells Fargo & Co., 5.10%, 05/06/18 350,000 361,256
Wells Fargo & Co., 6.875%, 04/01/06 150,000 164,741
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4,645,432
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BUILDING PRODUCTS (0.32%)
Vulcan Materials Co., 6.40%, 02/01/06 200,000 213,352
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CHEMICALS (0.76%)
Dow Chemical Co., 6.85%, 08/15/13 150,000 172,347
Lubrizol Corp., 5.875%, 12/01/08 150,000 167,220
Sherwin-Williams Co., 6.85%, 02/01/07 150,000 167,347
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506,914
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COMPUTER HARDWARE (0.49%)
Hewlett-Packard Co., 7.15%, 06/15/05 150,000 159,609
International Business Machines Corp.,
5.375%, 02/01/09 150,000 164,465
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324,074
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CONSUMER PRODUCTS (0.26%)
Clorox Co., 6.125%, 02/01/11 150,000 170,713
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COSMETICS & TOILETRIES (0.30%)
Procter & Gamble Co., 8.00%, 10/26/29 150,000 201,391
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DIVERSIFIED FINANCIAL SERVICES (9.93%)
American Express Co., 5.50%, 09/12/06 150,000 161,962
Banque Paribas NY, 8.35%, 06/15/07 150,000 174,975
Bear Stearns Cos., Inc., 3.50%, 06/27/18 500,000 468,456
Caterpillar Financial Services Corp.,
5.55%, 10/15/18 500,000 512,635
Charles Schwab Corp., 8.05%, 03/01/10 150,000 178,515
CIT Group, Inc., 5.30%, 12/15/07 440,000 463,294
Citigroup, Inc., 6.75%, 12/01/05 150,000 162,211
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
BOND FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
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PRINCIPAL VALUE
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Countrywide Home Loans, Inc., 5.50%, 08/01/06 $ 150,000 $ 160,818
Credit Suisse First Boston USA, Inc., 6.125%,
11/15/11 150,000 167,550
General Electric Capital Corp., 4.00%, 05/30/18 500,000 491,419
General Motors Acceptance Corp., 6.125%,
02/01/07 + 150,000 161,193
General Motors Corp., 7.20%, 01/15/11 150,000 164,390
Goldman Sachs Group, Inc., 5.70%, 09/01/12 500,000 541,102
Goldman Sachs Group, Inc., 6.875%, 01/15/11 150,000 174,282
Household Finance Corp., 6.375%, 10/15/11 150,000 170,079
Household Finance Corp., 6.75%, 05/15/11 150,000 173,259
John Deere Capital Corp., 7.00%, 03/15/12 500,000 591,903
Lehman Brothers Holdings, Inc., 6.25%, 05/15/06 150,000 163,246
Lehman Brothers, Inc., 6.625%, 02/15/08 150,000 169,117
Merrill Lynch & Co., Inc., 6.15%, 01/26/06 150,000 162,130
Merrill Lynch & Co., Inc., 8.00%, 06/01/07 150,000 173,568
Morgan Stanley, 6.75%, 04/15/11 150,000 173,267
Morgan Stanley Group, Inc., 6.875%, 03/01/07 150,000 169,116
SLM Corp., VRN, 01/31/14 496,000 507,358
Toyota Motor Credit Corp., 5.50%, 12/15/08 150,000 166,496
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6,602,341
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DIVERSIFIED MANUFACTURING (0.55%)
Honeywell International, Inc., 7.50%, 3/01/10 + 150,000 180,343
PPG Industries, Inc., 7.375%, 06/01/16 150,000 182,373
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362,716
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FOOD & BEVERAGE (2.07%)
Albertson's, Inc., 7.45%, 08/01/29 150,000 170,421
Archer-Daniels-Midland Co., 7.125%, 03/01/13 150,000 179,963
Campbell Soup Co., 6.75%, 02/15/11 150,000 175,048
General Mills, Inc., 6.00%, 02/15/12 150,000 165,653
H.J. Heinz Co., 6.00%, 03/15/08 150,000 166,940
Kellogg Co., 6.60%, 04/01/11 150,000 173,570
Kroger Co., 7.00%, 05/01/18 150,000 173,277
Safeway, Inc., 7.00%, 09/15/07 150,000 169,630
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1,374,502
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FOREST PRODUCTS & PAPER (0.52%)
International Paper Co., 7.625%, 01/15/07 150,000 168,959
Weyerhaeuser Co., 7.25%, 07/01/13 150,000 174,893
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343,852
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HEALTHCARE PRODUCTS (0.48%)
Bausch & Lomb, Inc., 6.75%, 12/15/04 150,000 154,340
Baxter International, Inc., 6.625%, 02/15/28 150,000 166,284
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320,624
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INSURANCE (2.11%)
Allstate Corp., 6.75%, 05/15/18 650,000 767,229
Chubb Corp., 7.125%, 12/15/07 250,000 287,903
Hartford Life, Inc., 7.65%, 06/15/27 150,000 185,122
John Hancock Financial Services, Inc.,
5.625%, 12/01/08 150,000 164,811
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1,405,065
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CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
BOND FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
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PRINCIPAL VALUE
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MINING (0.27%)
Alcoa, Inc., 7.375%, 08/01/10 $ 150,000 $ 180,150
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MULTIMEDIA (0.25%)
Time Warner, Inc., 6.875%, 06/15/18 150,000 168,400
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PHARMACEUTICALS (0.74%)
Abbott Laboratories, 5.625%, 07/01/06 150,000 161,962
Bristol-Myers Squibb Co., 6.80%, 11/15/26 150,000 173,335
Wyeth, 7.90%, 02/15/05 150,000 158,036
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493,333
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PIPELINES (0.71%)
Consolidated Natural Gas Co., 6.625%, 12/01/08 150,000 169,548
Duke Capital Corp., 7.50%, 10/01/09 + 150,000 173,519
El Paso Corp., 7.00%, 05/15/11 + 150,000 128,625
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471,692
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REAL ESTATE INVESTMENT TRUST (0.52%)
EOP Operating LP, 7.25%, 02/15/18 150,000 176,573
Simon Property Group LP, 6.375%, 11/15/07 150,000 168,607
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345,180
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RESEARCH & DEVELOPMENT (1.01%)
Science Applications International Corp.,
6.25%, 07/01/12 + 600,000 671,899
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RETAIL STORES (0.26%)
Sears Roebuck Acceptance Corp., 7.00%, 02/01/11 150,000 170,542
----------
TELECOMMUNICATIONS (1.25%)
AT&T Corp., 7.50%, 06/01/06 150,000 164,925
Bellsouth Capital Funding, 7.75%, 02/15/10 150,000 180,362
GTE Florida, Inc., 6.86%, 02/01/28 150,000 164,270
Motorola, Inc., 6.50%, 03/01/08 150,000 165,245
Pacific Bell, 6.25%, 03/01/05 150,000 156,595
----------
831,397
----------
TRANSPORTATION (0.80%)
Norfolk Southern Corp., 7.35%, 05/15/07 150,000 170,899
Union Pacific Corp., 6.40%, 02/01/06 150,000 161,303
United Parcel Service, Inc., 8.375%, 04/01/20 150,000 202,667
----------
534,869
----------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
BOND FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
---------- -----------
UTILITIES (2.38%)
Carolina Power & Light Co., 5.95%, 03/01/09 $ 150,000 $ 166,207
Constellation Energy Group, Inc., 6.35%, 04/01/07 150,000 165,361
DTE Energy Co., 6.45%, 06/01/06 150,000 162,043
Emerson Electric Co., 5.85%, 03/15/09 150,000 168,042
Penn Electric Co., 6.125%, 04/01/09 125,000 139,108
Public Service Electric & Gas, 7.00%, 09/01/24 150,000 154,461
Southern Union Co., 7.60%, 02/01/24 150,000 171,324
Tennessee Valley Authority, 6.00%, 03/15/13 250,000 283,878
Wisconsin Energy Corp., 6.50%, 04/01/11 150,000 170,038
-----------
1,580,462
-----------
TOTAL CORPORATE BONDS (Cost $22,453,057) 24,389,256
-----------
FOREIGN BONDS (5.88%)
FOREIGN CORPORATE BONDS (2.85%)
Barclays Bank Plc, 7.40%, 12/15/09 150,000 180,155
Bell Canada, 9.50%, 10/15/10 150,000 197,682
British Telecommunications Plc, 8.375%, 12/15/10 150,000 185,363
Hydro-Quebec, 6.30%, 05/11/11 175,000 202,218
Inter-American Development Bank, 6.125%, 03/08/06 175,000 189,639
International Bank for Reconstruction &
Development, 7.00%, 01/27/05 175,000 183,279
Landesbank Baden-Wuerttemberg Girozentrale,
7.625%, 02/01/23 175,000 222,408
National Westminster Bank Plc, 7.375%, 10/01/09 150,000 179,613
Norsk Hydro ASA, 6.70%, 01/15/18 150,000 174,521
Telefonica Europe BV, 7.75%, 09/15/10 + 150,000 181,151
-----------
1,896,029
-----------
FOREIGN GOVERNMENT REGIONAL (3.03%)
Canadian Government Bond, 6.375%, 11/30/04 175,000 181,012
Finland Government International Bond,
7.875%, 07/28/04 175,000 178,817
Italy Government International Bond, 7.25%, 02/07/05 175,000 183,735
Province of British Columbia, 5.375%, 10/29/08 175,000 192,603
Province of Manitoba, 4.25%, 11/20/06 175,000 184,355
Province of New Brunswick, 7.625%, 06/29/04 175,000 177,642
Province of Nova Scotia, 7.25%, 07/27/13 100,000 123,828
Province of Ontario, 5.50%, 10/01/08 175,000 193,393
Province of Quebec, 6.50%, 01/17/06 175,000 188,504
Province of Saskatchewan, 8.00%, 02/01/13 175,000 223,603
Spain Government International Bond, 7.00%, 07/19/05 175,000 187,313
-----------
2,014,805
------------
TOTAL FOREIGN BONDS (Cost $3,520,521) 3,910,834
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
BOND FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
----------- ------------
U.S. TREASURY OBLIGATIONS (36.38%)
TREASURY BONDS (18.86%)
3.625%, 05/15/13 + $ 500,000 $ 496,797
5.75%, 08/15/10 3,500,000 4,018,438
6.25%, 08/15/23 + 2,250,000 2,675,302
6.75%, 08/15/26 + 1,000,000 1,264,375
7.50%, 11/15/16 1,000,000 1,318,359
7.875%, 02/15/21 2,000,000 2,766,172
-------------
12,539,443
-------------
TREASURY NOTES (17.52%)
2.625%, 05/15/08 + 2,000,000 2,012,188
3.50%, 11/15/06 + 4,000,000 4,169,220
4.25%, 11/15/13 1,000,000 1,034,414
4.75%, 11/15/08 + 1,600,000 1,745,062
5.625%, 02/15/06 + 1,000,000 1,076,172
6.50%, 08/15/05 + 1,500,000 1,606,524
-------------
11,643,580
-------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $23,022,993) 24,183,023
-------------
SHORT TERM INVESTMENTS (26.64%)
Deutsche Bank Tri-Part Agency Repurchase Agreement, 1.06%, 04/01/04 # 16,628,865 16,628,865
Fifth Third Institutional Government Money Market Fund, 0.79% ** 1,075,938 1,075,938
-------------
TOTAL SHORT TERM INVESTMENTS (Cost $17,704,803) 17,704,803
-------------
TOTAL INVESTMENTS (Cost $78,048,482) (123.75%) $ 82,258,386
LIABILITIES IN EXCESS OF OTHER ASSETS (-23.75%) (15,786,390)
-------------
NET ASSETS (100%) $ 66,471,996
=============
Cost for federal income tax at March 31, 2004 was $78,048,482 and net
unrealized appreciation consisted of:
Gross unrealized appreciation $ 4,317,599
Gross unrealized depreciation (107,695)
-------------
Net unrealized appreciation $ 4,209,904
=============
** Rate shown represents the rate at March 31, 2004, is subject to change and
resets daily.
# Represents investment of cash received as collateral for securities on loan.
+ Portion or all of this security is on loan.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
COMMON STOCK (99.36%)
ADVERTISING (0.23%)
Interpublic Group Cos., Inc. 3,084 $ 47,432
Omnicom Group 2,120 170,130
------------
217,562
------------
AEROSPACE/DEFENSE (1.61%)
Boeing Co. 7,849 322,358
General Dynamics Corp. 2,030 181,340
Goodrich Corp. 921 25,852
Lockheed Martin Corp. 4,226 192,875
Northrop Grumman Corp. 1,798 176,959
Raytheon Co. 3,743 117,306
Rockwell Collins, Inc. 1,506 47,605
United Technologies Corp. 4,980 429,774
------------
1,494,069
------------
AGRICULTURE (0.09%)
Monsanto Co. 2,255 82,691
------------
AIRLINES (0.12%)
Delta Air Lines, Inc. + 2,260 17,899
Southwest Airlines Co. 6,559 93,203
------------
111,102
------------
APPAREL (0.41%)
Jones Apparel Group, Inc. 1,180 42,657
Liz Claiborne, Inc. 1,000 36,690
Nike, Inc. 2,742 213,520
Reebok International Ltd. 550 22,742
VF Corp. 1,288 60,150
------------
375,759
------------
APPLIANCES (0.10%)
Maytag Corp. 690 21,783
Whirlpool Corp. 994 68,457
------------
90,240
------------
AUTO PARTS & EQUIPMENT (0.21%)
Cooper Tire & Rubber Co. 170 3,426
Dana Corp. 945 18,768
Delphi Corp. 2,654 26,434
Goodyear Tire & Rubber Co. + 910 7,771
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Johnson Controls, Inc. 2,208 $ 130,603
Visteon Corp. 918 8,785
------------
195,787
------------
AUTOMOBILE MANUFACTURERS (0.62%)
Ford Motor Co. 14,266 193,590
General Motors Corp. 5,214 245,579
Navistar International Corp. * 710 32,554
Paccar, Inc. 1,881 105,787
------------
577,510
------------
BANKS (8.27%)
AmSouth Bancorp 1,820 42,788
Bank of America Corp. 13,858 1,122,221
Bank of New York Co., Inc. 7,258 228,627
Bank One Corp. 11,024 601,028
BB&T Corp. 5,550 195,915
Charter One Financial, Inc. 3,629 128,321
Comerica, Inc. 2,480 134,714
Fifth Third Bancorp 5,912 327,347
First Tennessee National Corp. * 1,390 66,303
FleetBoston Financial Corp. 10,072 452,233
Golden West Financial Corp. 1,780 199,271
Huntington Bancshares, Inc. 1,162 25,785
Keycorp 3,520 106,621
M & T Bank Corp. 1,370 123,095
Marshall & Ilsley Corp. 2,140 80,913
Mellon Financial Corp. 3,840 120,154
National City Corp. 5,464 194,409
North Fork Bancorporation, Inc. 1,610 68,135
Northern Trust Corp. 2,590 120,668
PNC Financial Services Group, Inc. 3,305 183,163
Regions Financial Corp. 2,260 82,535
SouthTrust Corp. 3,010 99,812
State Street Corp. 3,540 184,540
SunTrust Banks, Inc. 3,305 230,392
Synovus Financial Corp. 2,425 59,291
Union Planters Corp. 1,775 52,984
U.S. Bancorp 17,306 478,511
Wachovia Corp. 12,678 595,866
Washington Mutual, Inc. 8,946 382,084
Wells Fargo & Co. 16,044 909,213
Zions Bancorp 1,370 78,364
------------
7,675,303
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
BIOTECHNOLOGY (1.03%)
Amgen, Inc. * 12,229 $ 711,361
Chiron Corp. * 2,110 92,861
Genzyme Corp. * 2,420 113,837
Millipore Corp. * 800 41,104
------------
959,163
------------
BUILDING MATERIALS (0.30%)
American Standard Cos., Inc. * 770 87,588
Masco Corp. 3,990 121,416
Vulcan Materials Co. 1,360 64,518
------------
273,522
------------
CHEMICALS (1.65%)
Air Products & Chemicals, Inc. 2,398 120,188
Ashland, Inc. 715 33,240
Dow Chemical Co. 8,616 347,052
Du Pont EI de Nemours & Co. 9,574 404,214
Eastman Chemical Co. 910 38,839
Ecolab, Inc. 2,692 76,803
Engelhard Corp. 994 29,711
Great Lakes Chemical Corp. 190 4,532
Hercules, Inc. * 393 4,512
International Flavors & Fragrances, Inc. 1,436 50,978
PPG Industries, Inc. 2,025 118,057
Praxair, Inc. 3,422 127,025
Rohm & Haas Co. 2,098 83,584
Sherwin-Williams Co. 1,156 44,425
Sigma-Aldrich Corp. 838 46,375
------------
1,529,535
------------
COMMERCIAL SERVICES (1.01%)
Apollo Group, Inc. * 1,820 156,720
Cendant Corp. 8,596 209,656
Convergys Corp. * 1,170 17,784
Deluxe Corp. 927 37,173
Equifax, Inc. 1,340 34,599
H&R Block, Inc. 1,820 92,875
McKesson Corp. 2,819 84,824
Moody's Corp. 1,786 126,449
Paychex, Inc. 3,952 140,691
R.R. Donnelley & Sons Co. 1,238 37,450
------------
938,221
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
COMPUTER HARDWARE (4.03%)
Apple Computer, Inc. * 3,588 $ 97,055
Dell Computer Corp. * 23,722 797,534
EMC Corp. * 20,908 284,558
ESC Seagate Technology * 1,255 --
Gateway, Inc. * 1,720 9,082
Hewlett-Packard Co. 27,759 634,016
International Business Machines Corp. 15,836 1,454,378
Lexmark International, Inc. * 1,500 138,000
NCR Corp. * 1,350 59,481
Network Appliance, Inc. * 3,370 72,287
Sun Microsystems, Inc. * 19,194 79,846
Veritas Software Corp. * 4,179 112,457
------------
3,738,694
------------
COMPUTER SERVICES (0.46%)
Computer Sciences Corp. * + 2,048 82,596
Electronic Data Systems Corp. 4,370 84,560
Sungard Data Systems, Inc. * 2,890 79,186
Symantec Corp. * 3,130 144,919
Unisys Corp. * 2,430 34,700
------------
425,961
------------
COMPUTER SOFTWARE (4.92%)
Adobe Systems, Inc. 2,630 103,701
Autodesk, Inc. 1,300 41,106
Automatic Data Processing 6,230 261,660
BMC Software, Inc. * 2,010 39,296
Citrix Systems, Inc. * 1,520 32,862
Computer Associates International, Inc. 5,515 148,133
Compuware Corp. * 1,730 12,888
Electronic Arts, Inc. * 3,130 168,895
First Data Corp. 8,437 355,704
Fiserv, Inc. * 2,185 78,157
IMS Health, Inc. 2,312 53,777
Intuit, Inc. * 2,200 98,736
Mercury Interactive Corp. * 1,110 49,728
Microsoft Corp. 97,288 2,429,281
Novell, Inc. * 2,949 33,560
Oracle Corp. * 45,402 545,278
Parametric Technology Corp. * 1,200 5,424
Peoplesoft, Inc. * 3,480 63,345
Siebel Systems, Inc. * + 3,780 43,508
------------
4,566,039
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
CONSUMER PRODUCTS (0.16%)
American Greetings * + 550 $ 12,523
Clorox Co. 2,602 127,264
Tupperware Corp. 581 10,348
------------
150,135
------------
CONTAINERS (0.15%)
Ball Corp. 660 44,735
Bemis Co. 1,490 38,740
Pactiv Corp. * 818 18,201
Sealed Air Corp. * 795 39,535
------------
141,211
------------
COSMETICS & TOILETRIES (2.84%)
Alberto-Culver Co. 1,620 71,069
Avon Products, Inc. 2,628 199,386
Colgate-Palmolive Co. 5,658 311,756
Gillette Co. 10,048 392,877
Kimberly-Clark Corp. 5,906 372,669
Procter & Gamble Co. 12,262 1,286,039
------------
2,633,796
------------
DISTRIBUTION/WHOLESALE (0.14%)
Genuine Parts Co. 1,840 60,205
W.W. Grainger, Inc. 1,440 69,120
------------
129,325
------------
DIVERSIFIED FINANCIAL SERVICES (8.61%)
American Express Co. 12,288 637,133
Bear Stearns Cos., Inc. 977 85,663
Capital One Financial Corp. 2,220 167,455
Charles Schwab Corp. 9,485 110,121
Citigroup, Inc. 47,096 2,434,863
Countrywide Financial Corp. 1,683 161,400
Fannie Mae 9,021 670,711
Federated Investors, Inc. 690 21,687
Franklin Resources, Inc. 2,560 142,541
Freddie Mac 6,448 380,819
Goldman Sachs Group, Inc. 4,330 451,835
Janus Capital Group, Inc. 1,160 19,001
J.P. Morgan Chase & Co. 19,075 800,196
Lehman Brothers Holdings, Inc. 2,580 213,805
MBNA Corp. 11,327 312,965
Merrill Lynch & Co. 8,884 529,131
Morgan Stanley 10,204 584,689
Providian Financial Corp. * 1,622 21,248
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
SLM Corp. 4,100 $ 171,585
T. Rowe Price Group, Inc. 1,370 73,747
------------
7,990,595
------------
DIVERSIFIED MACHINERY (0.68%)
Caterpillar, Inc. 3,602 284,810
Cummins, Inc. 500 29,225
Deere & Co. 2,578 178,681
Dover Corp. 2,160 83,743
Rockwell Automation, Inc. 1,676 58,107
------------
634,566
------------
DIVERSIFIED MANUFACTURING (5.54%)
3M Co. 7,744 634,001
Cooper Industries Ltd. 1,144 65,414
Crane Co. 440 14,520
Danaher Corp. 1,570 146,591
Eaton Corp. 2,030 114,066
General Electric Co. 90,178 2,752,233
Honeywell International, Inc. 7,928 268,363
Illinois Tool Works, Inc. 3,446 273,027
Ingersoll-Rand Co. 1,983 134,150
ITT Industries, Inc. 1,068 81,520
Pall Corp. 909 20,625
Plum Creek Timber Co., Inc. 1,270 41,249
Textron, Inc. 1,520 80,788
Tyco International Ltd. 17,934 513,809
------------
5,140,356
------------
E-COMMERCE SERVICES (0.49%)
eBay, Inc. * 6,180 428,459
Monster Worldwide, Inc. * 1,120 29,344
------------
457,803
------------
ELECTRIC PRODUCTS (0.36%)
Emerson Electric Co. 4,616 276,591
Molex, Inc. 1,902 57,802
------------
334,393
------------
ELECTRONIC COMPONENTS (0.51%)
Agilent Technologies, Inc. * 4,430 140,121
American Power Conversion 1,560 35,896
Jabil Circuit, Inc. * 1,770 52,091
Parker Hannifin Corp. 1,391 78,592
Power-One, Inc. * 350 3,871
Sanmina-SCI Corp. * 3,540 38,975
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Solectron Corp. * 3,140 $ 17,364
Symbol Technologies, Inc. 1,985 27,393
Tektronic, Inc. 820 26,822
Thermo Electron Corp. * 1,552 43,891
Thomas & Betts Corp. 205 4,473
------------
469,489
------------
ENGINEERING & CONSTRUCTION (0.04%)
Fluor Corp. 950 36,756
------------
FOOD (2.18%)
Albertson's, Inc. 3,772 83,550
Archer-Daniels-Midland Co. 5,711 96,345
Campbell Soup Co. 5,044 137,550
General Mills, Inc. 5,108 238,441
H.J. Heinz Co. 5,277 196,779
Hershey Foods Corp. 2,480 205,468
Kellogg Co. 5,310 208,364
Kroger Co. * 6,044 100,572
McCormick & Co. 2,110 70,727
Safeway, Inc. * 4,430 91,169
Supervalu, Inc. 1,780 54,361
Sysco Corp. 7,666 299,357
Wm. Wrigley Jr. Co. 3,880 229,386
Winn-Dixie Stores, Inc. + 1,150 8,740
------------
2,020,809
------------
FOREST & PAPER PRODUCTS (0.60%)
Boise Cascade Corp. 625 21,656
Georgia-Pacific Corp. 2,196 73,983
International Paper Co. 4,591 194,016
Louisiana-Pacific Corp. 610 15,738
MeadWestvaco Corp. 1,512 42,774
Temple-Inland, Inc. 700 44,338
Weyerhaeuser Co. 2,464 161,392
------------
553,897
------------
HEALTHCARE PRODUCTS (4.08%)
Bausch & Lomb, Inc. 875 52,474
Baxter International, Inc. 5,836 180,274
Becton Dickinson & Co. 2,960 143,501
Biogen Idec, Inc. * 3,188 177,253
Biomet, Inc. 2,812 107,868
Boston Scientific Corp. * 7,784 329,886
C.R. Bard, Inc. 690 67,372
Guidant Corp. 3,186 201,897
Johnson & Johnson 28,359 1,438,368
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Medtronic, Inc. 11,532 $ 550,653
St. Jude Medical, Inc. * 1,904 137,278
Stryker Corp. 2,320 205,390
Zimmer Holdings, Inc.* 2,580 190,352
------------
3,782,566
------------
HEALTHCARE SERVICES (0.48%)
Anthem, Inc. * + 1,700 154,088
Express Scripts, Inc. * 1,090 81,303
Health Management Associates, Inc. 2,330 54,079
Manor Care, Inc. 1,235 43,583
Quest Diagnostics 1,370 113,477
------------
446,530
------------
HOME BUILDERS (0.21%)
Centex Corp. 1,280 69,197
KB HOME 610 49,288
Pulte Homes, Inc. 1,380 76,728
------------
195,213
------------
HOME FURNISHINGS (0.10%)
Leggett & Platt, Inc. 1,430 33,905
Newell Rubbermaid 2,588 60,042
------------
93,947
------------
HOTELS & MOTELS (0.26%)
Hilton Hotels Corp. 1,880 30,550
Marriott International, Inc. 2,713 115,438
Starwood Hotels & Resorts Worldwide, Inc. 2,350 95,175
------------
241,163
------------
HUMAN RESOURCES (0.04%)
Robert Half International, Inc. 1,480 34,958
------------
INSTRUMENTS/CONTROLS (0.12%)
Applera Corp - Applied Biosystems Group 1,960 38,769
PerkinElmer, Inc. 800 16,552
Waters Corp. * 1,300 53,092
------------
108,413
------------
INSURANCE (5.27%)
ACE Ltd. 2,490 106,223
Aflac, Inc. 5,360 215,150
Allstate Corp. 6,536 297,127
AMBAC Financial Group, Inc. 1,140 84,109
American International Group 23,829 1,700,199
AON Corp. 2,384 66,537
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Chubb Corp. 1,980 $ 137,689
Cincinnati Financial Corp. 1,640 71,258
Hartford Financial Services Group, Inc. 3,008 191,610
Jefferson-Pilot Corp. 2,378 130,814
John Hancock Financial Services, Inc. 2,830 123,643
Lincoln National Corp. 2,138 101,170
Marsh & McLennan Cos., Inc. 5,516 255,391
MBIA, Inc. 1,540 96,558
Metlife, Inc. 7,110 253,685
MGIC Investment Corp. 1,000 64,230
Principal Financial Group 2,980 106,177
Progressive Corp. 2,080 182,208
Prudential Financial, Inc. 5,520 247,186
Safeco Corp. + 1,309 56,510
St. Paul Cos 1,980 79,220
Torchmark Corp. 1,550 83,375
Travelers Property Casualty Corp. 6,262 108,145
UnumProvident Corp. 2,140 31,308
XL Capital Ltd. 1,360 103,414
------------
4,892,936
------------
LEISURE & RECREATIONAL PRODUCTS (0.16%)
Brunswick Corp. 1,254 51,201
Hasbro, Inc. 1,445 31,429
Mattel, Inc. 3,671 67,693
------------
150,323
------------
LINEN SUPPLY (0.09%)
Cintas Corp. 1,820 79,152
------------
MEDIA (2.87%)
AOL Time Warner, Inc. * 40,140 676,760
Clear Channel Communications, Inc. 6,250 264,687
Comcast Corp. * 20,472 588,365
Dow Jones & Co., Inc. 1,255 60,127
Gannett Co., Inc. 3,344 294,740
Knight-Ridder, Inc. 1,539 112,732
McGraw-Hill Cos., Inc. 2,610 198,725
Meredith Corp. 1,198 60,571
New York Times Co. 2,224 98,301
Tribune Co. 3,867 195,051
Univision Communications, Inc. * 3,390 111,904
------------
2,661,963
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
METAL FABRICATION (0.01%)
Worthington Industries 480 $ 9,202
------------
MINING (0.68%)
Alcoa, Inc. 8,208 284,735
Freeport-McMoRan Copper & Gold, Inc. 1,980 77,398
Newmont Mining Corp. 4,138 192,955
Phelps Dodge Corp. * 945 77,169
------------
632,257
------------
MOTORCYCLE MANUFACTURER (0.20%)
Harley-Davidson, Inc. 3,480 185,623
------------
OFFICE AUTOMATION & EQUIPMENT (0.37%)
Avery Dennison Corp. 1,371 85,290
Pitney Bowes, Inc. 3,884 165,497
Xerox Corp. * + 6,462 94,151
------------
344,938
------------
OIL & GAS (6.17%)
Amerada Hess Corp. 978 63,844
Anadarko Petroleum Corp. 2,163 112,173
Apache Corp. 3,144 135,726
Baker Hughes, Inc. 2,700 98,496
BJ Services Co. * 1,340 57,982
Burlington Resources, Inc. 1,747 111,162
ChevronTexaco Corp. 10,179 893,513
ConocoPhillips 6,834 477,082
Devon Energy Corp. 2,070 120,371
EOG Resources, Inc. 810 37,171
Exxon Mobil Corp. 59,372 2,469,281
Halliburton Co. 3,598 109,343
Kerr-McGee Corp. 1,170 60,255
Marathon Oil Corp. 2,886 97,172
Nabors Industries Ltd. * 1,330 60,847
Nicor, Inc. 780 27,479
Noble Corp. * 870 33,425
Occidental Petroleum Corp. 3,333 153,485
Peoples Energy Corp. 660 29,469
Rowan Cos., Inc. * 170 3,585
Schlumberger Ltd. 5,960 380,546
Sunoco, Inc. 990 61,756
Transocean, Inc. * 2,317 64,621
Unocal Corp. 1,842 68,670
------------
5,727,454
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
PHARMACEUTICALS (7.36%)
Abbott Laboratories 15,086 $ 620,035
Allergan, Inc. 1,560 131,290
AmerisourceBergan Corp. 1,310 71,631
Bristol-Myers Squibb Co. 18,638 451,599
Cardinal Health, Inc. 4,640 319,696
Eli Lilly & Co. 10,645 712,150
Forest Laboratories, Inc. * 3,580 256,400
King Pharmaceuticals, Inc. * 2,056 34,623
Medco Health Solutions, Inc. * 2,811 95,574
Medimmune, Inc. * 2,380 54,930
Merck & Co., Inc. 20,810 919,594
Pfizer, Inc. 69,335 2,430,192
Schering-Plough Corp. 12,590 204,210
Watson Pharmaceuticals, Inc. * 1,260 53,915
Wyeth 12,510 469,750
------------
6,825,589
------------
PHOTOGRAPHY EQUIPMENT (0.10%)
Eastman Kodak Co. 3,414 89,344
------------
PIPELINES (0.20%)
Dynegy, Inc. + 2,570 10,177
El Paso Corp. 3,821 27,167
Kinder Morgan, Inc. 1,820 114,696
Williams Cos., Inc. 3,280 31,390
------------
183,430
------------
REAL ESTATE INVESTMENT TRUSTS (0.40%)
Apartment Investment & Management Co. 1,180 36,686
Equity Office Properties Trust 3,110 89,848
Equity Residential Properties Trust 2,140 63,879
ProLogis 1,190 42,685
Simon Property Group, Inc. 2,330 136,165
------------
369,263
------------
RETAIL STORES (6.95%)
Autonation, Inc. * 1,100 18,755
Autozone, Inc. * 1,027 88,291
Bed Bath & Beyond, Inc. * 3,030 126,533
Best Buy Co., Inc. 3,215 166,280
Big Lots, Inc. * 450 6,525
Circuit City Stores, Inc. 1,190 13,447
Costco Wholesale Corp. * 4,430 166,391
CVS Corp. 3,994 140,988
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Dillard's, Inc. 370 $ 7,089
Dollar General Corp. 2,761 53,011
Family Dollar Stores 1,890 67,945
Federated Department Stores 2,057 111,181
Gap, Inc. 7,695 168,674
Home Depot, Inc. 20,969 783,402
J.C. Penney Co., Inc. Holding Co. 2,647 92,063
Kohl's Corp. * 3,370 162,872
Limited Brands 3,770 75,400
Lowe's Cos., Inc. 7,606 426,925
May Department Stores Co. 3,038 105,054
Nordstrom, Inc. 1,390 55,461
Office Depot, Inc. * 2,030 38,205
RadioShack Corp. 1,740 57,698
Sears Roebuck and Co. 2,704 116,164
Staples, Inc. 4,290 108,923
Target Corp. 8,818 397,163
Tiffany & Co. 1,630 62,217
TJX Cos., Inc. 4,080 100,205
Toys R US, Inc. * 1,181 19,841
Walgreen Co. 40,098 2,393,450
Wal-Mart Stores, Inc. 9,756 321,460
------------
6,451,613
------------
SEMICONDUCTORS (3.89%)
Advanced Micro Devices, Inc. * + 2,698 43,789
Altera Corp. * 3,200 65,440
Analog Devices, Inc. 3,600 172,836
Applied Materials, Inc. * 14,450 308,941
Applied Micro Circuits Corp. * 1,380 7,935
Broadcom Corp. * 2,900 113,593
Intel Corp. 58,464 1,590,221
Kla-Tencor Corp. * 1,920 96,672
Linear Technology Corp. 3,070 113,651
LSI Logic Corp. * 1,820 16,999
Maxim Integrated Products 3,290 154,926
Micron Technology, Inc. * 4,866 81,311
National Semiconductor Corp. * 1,810 80,418
Novellus Systems, Inc. * 1,500 47,685
Nvidia Corp. * 1,370 36,291
PMC - Sierra, Inc. * 1,450 24,607
QLogic Corp. * 1,000 33,010
Teradyne, Inc. * 1,650 39,319
Texas Instruments, Inc. 15,658 457,527
Xilinx, Inc. 3,260 123,880
------------
3,609,051
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
STEEL PRODUCERS (0.11%)
Allegheny Technologies, Inc. 446 $ 5,397
Nucor Corp. 971 59,697
United States Steel Corp. 1,023 38,127
------------
103,221
------------
TELECOMMUNICATIONS (6.61%)
ADC Telecommunications, Inc. * + 3,790 10,991
Alltel Corp. 4,048 201,955
Andrew Corp. * 1,122 19,635
AT&T Corp. 6,618 129,514
AT&T Wireless Services, Inc. * 23,274 316,759
Avaya, Inc. * 3,654 58,025
BellSouth Corp. 17,296 478,926
CenturyTel, Inc. 1,580 43,434
CIENA Corp. * 1,870 9,294
Cisco Systems, Inc. * 61,938 1,456,782
Citizens Communications Co. * 1,020 13,199
Comverse Technology, Inc. * 1,540 27,935
Corning, Inc. * 10,659 119,168
JDS Uniphase Corp. * 6,810 27,717
Lucent Technologies, Inc. * + 27,951 114,879
Motorola, Inc. 20,308 357,421
Nextel Communications, Inc. * 9,880 244,332
Qualcomm, Inc. 7,330 486,859
Qwest Communications International * 9,996 43,083
SBC Communications, Inc. 30,205 741,231
Scientific-Atlanta, Inc. 1,430 46,246
Sprint Corp.-FON Group 7,580 69,736
Sprint Corp.-PCS Group * 7,992 147,292
Tellabs, Inc. * 2,172 18,744
Verizon Communications, Inc. 26,061 952,269
------------
6,135,426
------------
TOOLS (0.13%)
Black & Decker Corp. 1,011 57,566
Snap-On, Inc. 580 18,757
Stanley Works 1,130 48,229
------------
124,552
------------
TRANSPORTATION (1.44%)
Burlington Northern Santa Fe Corp. 2,994 94,311
CSX Corp. 1,865 56,491
FedEx Corp. 2,846 213,905
Norfolk Southern Corp. 2,506 55,357
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Union Pacific Corp. 2,863 $ 171,265
United Parcel Service, Inc. 10,590 739,606
------------
1,330,935
------------
TRAVEL SERVICES (0.04%)
Sabre Holdings Corp. 1,624 40,291
------------
TRUCKING & LEASING (0.03%)
Ryder System, Inc. 620 24,013
------------
UTILITIES (3.42%)
AES Corp. * 3,060 26,102
Allegheny Energy, Inc. * 1,800 24,678
Ameren Corp. 2,808 129,421
American Electric Power Co., Inc. 4,144 136,420
Calpine Corp. * + 1,780 8,313
Centerpoint Energy, Inc. 2,430 27,775
Cinergy Corp. 2,464 100,753
CMS Energy Corp. * + 630 5,639
Consolidated Edison, Inc. 3,049 134,461
Constellation Energy Group, Inc. 3,549 141,783
Dominion Resources, Inc. 3,784 243,311
DTE Energy Co. 2,159 88,843
Duke Energy Corp. 7,266 164,212
Edison International 2,116 51,398
Entergy Corp. 3,125 185,937
Exelon Corp. 4,074 280,576
FirstEnergy Corp. 3,685 144,010
FPL Group, Inc. 2,759 184,439
KeySpan Corp. 1,990 76,058
NiSource, Inc. 1,300 27,625
PG&E Corp. * 3,849 111,505
Pinnacle West Capital Corp. 1,420 55,877
PPL Corp. 2,315 105,564
Progress Energy, Inc. 3,274 154,140
Public Service Enterprise Group, Inc. 3,117 146,437
Sempra Energy 2,085 66,303
Southern Co. 7,050 215,025
TECO Energy, Inc. + 710 10,387
TXU Corp. 2,881 82,569
Xcel Energy, Inc. 2,250 40,072
------------
3,169,633
------------
WASTE DISPOSAL (0.21%)
Allied Waste Industries, Inc. * 1,530 20,364
Waste Management, Inc. 5,623 169,702
------------
190,066
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
TOTAL COMMON STOCK (COST $96,326,284) $ 92,177,354
------------
SHORT TERM INVESTMENTS (1.03%)
Deutsche Bank Tri-Part Agency Repurchase Agreement, 1.06%, 04/01/04 # 651,202 651,202
Fifth Third Institutional Government Money Market Fund, 0.79% ** 302,848 302,848
------------
TOTAL SHORT TERM INVESTMENTS (COST $954,050) 954,050
------------
TOTAL INVESTMENTS (COST $97,280,334) (100.39%) $ 93,131,404
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.39%) (357,490)
------------
NET ASSETS (100%) $ 92,773,914
============
Cost for federal income tax at March 31, 2004 was $97,969,861 and
net unrealized depreciation consisted of:
Gross unrealized appreciation $ 9,822,648
Gross unrealized depreciation (14,661,105)
------------
Net unrealized appreciation $ (4,838,457)
============
* Non-income producing investment
** Rate shown represents the rate at March 31, 2004, is subject to change and
resets daily.
# Represents investment of cash received as collateral for
securities on loan.
+ Portion or all of this security is on loan.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
COMMON STOCK (97.48%)
ADVERTISING (0.22%)
Advo, Inc. 2,283 $ 73,542
------------
AEROSPACE/DEFENSE (1.98%)
AAR Corp. * 2,132 26,181
Alliant Techsystems, Inc. * 2,947 160,317
Armor Holdings, Inc. * 2,150 71,165
Curtiss-Wright Corp. 1,800 84,366
DRS Technologies, Inc. * 1,990 55,680
EDO Corp. 1,540 37,083
Esterline Technologies Corp. * 1,640 40,754
GenCorp, Inc. 2,560 27,725
Kaman Corp. 1,253 18,707
Moog, Inc. * 2,085 71,140
Teledyne Technologies, Inc. * 2,250 42,075
Triumph Group, Inc. * 1,270 41,974
------------
677,167
------------
AGRICULTURE (0.20%)
Delta & Pine Land Co. 2,726 68,014
------------
AIRLINES (0.42%)
Atlantic Coast Airlines Holdings, Inc. * 2,810 20,429
Frontier Airlines, Inc. * 2,350 24,487
Mesa Air Group, Inc. * + 1,920 15,859
Skywest, Inc. 4,230 81,385
------------
142,160
------------
APPAREL (2.02%)
Gymboree Corp. * 2,010 33,708
Haggar Corp. 640 12,800
Kellwood Co. 2,160 84,780
K-Swiss, Inc. 2,660 65,090
Oshkosh B'Gosh, Inc. 1,010 23,634
Oxford Industries, Inc. 1,320 60,971
Phillips-Van Heusen 2,180 40,330
Quiksilver, Inc. * 4,020 87,837
Russell Corp. 2,310 42,181
Stride Rite Corp. 1,940 20,583
Urban Outfitters, Inc. * 3,000 144,180
Wolverine World Wide, Inc. 3,018 72,824
------------
688,918
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
APPLIANCES (0.07%)
Applica, Inc. * 1,300 $ 14,612
Fedders Corp. 390 2,227
Salton, Inc. * + 810 7,590
------------
24,429
------------
AUTO PARTS & EQUIPMENT (0.20%)
Midas, Inc. * 1,230 23,923
Standard Motor Products, Inc. 1,746 27,377
Tower Automotive, Inc. * 3,200 16,128
------------
67,428
------------
AUTOMOBILE MANUFACTURERS (0.62%)
Oshkosh Truck Corp. 2,730 152,061
Wabash National Corp. * 2,450 57,820
------------
209,881
------------
BANKS (6.09%)
Boston Private Financial Holdings, Inc. 1,910 53,480
Brookline Bancorp, Inc. 2,840 45,298
Chittenden Corp. 2,735 90,255
Community First Bankshares, Inc. 2,660 85,492
East-West Bancorp, Inc. 1,990 111,440
First Bancorp Puerto Rico 3,135 130,416
First Midwest Bancorp, Inc. 3,476 118,671
First Republic Bank 1,320 50,899
Fremont General Corp. 5,512 168,667
GBC Bancorp 2,640 43,032
Hudson United Bancorp 3,457 131,539
Irwin Financial Corp. 2,080 56,118
Provident Bankshares Corp. 1,936 60,752
Republic Bancorp 2,937 41,294
Riggs National Corp. 1,906 32,802
South Financial Group, Inc. 4,330 128,125
Southwest Bancorp of Texas, Inc. 2,640 99,607
Sterling Bancshares, Inc. 2,250 30,128
Susquehanna Bancshares, Inc. 2,755 70,611
Trustco Bank Corp. NY 3,344 45,010
UCBH Holdings, Inc. 3,360 134,534
Umpqua Holdings Corp. 1,720 34,727
United Bankshares, Inc. 3,210 97,905
Whitney Holding Corp. 3,277 136,782
Wintrust Financial Corp. 1,650 80,239
------------
2,077,823
------------
BATTERY SYSTEM (0.18%)
Wilson Greatbatch Technologies * 1,690 61,313
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
BIOTECHNOLOGY (0.65%)
Arqule, Inc. * 980 $ 5,821
Cryolife, Inc. * + 1,105 6,575
Enzo Biochem, Inc. * 2,158 36,319
Integra LifeSciences Holdings Corp. * 2,030 62,159
Osteotech, Inc. * 830 5,353
Possis Medical, Inc. * 1,370 38,538
Regeneron Pharmaceutical, Inc. * 4,000 54,320
Savient Pharmaceuticals, Inc. * 3,310 12,512
------------
221,597
------------
BUILDING MATERIALS (1.73%)
Apogee Enterprises, Inc. 1,540 18,988
Building Materials Holding Corp. 780 13,689
Butler Manufacturing Co. * 855 19,195
ElkCorp 1,490 40,364
Florida Rock Industries, Inc. 3,265 137,620
Lennox International, Inc. 4,120 76,426
Meritage Corp. * 1,060 78,705
Simpson Manufacturing Co., Inc. 2,040 99,858
Texas Industries, Inc. 1,690 61,094
Universal Forest Products, Inc. 1,450 44,747
------------
590,686
------------
CHEMICALS (1.34%)
Schulman (A.), Inc. 2,050 40,283
Arch Chemicals, Inc. 1,880 53,072
HB Fuller Co. 2,170 61,715
Georgia Gulf Corp. 2,450 73,867
MacDermid, Inc. 2,360 83,048
OM Group, Inc. * 2,141 65,086
Omnova Solutions, Inc. * 1,030 5,408
Penford Corp. 570 9,496
Polyone Corp. * 4,310 28,662
Quaker Chemical Corp. 860 21,844
Wellnan, Inc. 1,720 14,362
------------
456,843
------------
COMMERCIAL SERVICES (3.92%)
Aaron Rents, Inc. 2,460 61,229
ABM Industries, Inc. 3,380 60,671
Administaff, Inc. * + 1,940 33,814
Angelica Corp. 860 19,634
Arbitron, Inc. * 2,310 93,001
Bowne & Co., Inc. 2,334 39,911
CDI Corp. 1,579 50,970
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Central Parking Corp. 2,645 $ 53,112
Coinstar, Inc. * + 1,620 25,709
Consolidated Graphics, Inc. * 1,240 47,678
CPI Corp. 840 15,985
G&K Services, Inc. 1,697 63,162
Heidrick & Struggles, Inc. * 1,430 34,220
Hooper Holmes, Inc. 3,140 19,594
Insurance Auto Auctions, Inc. * 740 10,752
Kroll, Inc. * 3,070 82,430
Labor Ready, Inc. * 2,730 36,910
MAXIMUS, Inc. * 1,630 57,050
Memberworks, Inc. * + 870 30,380
NCO Group, Inc. * 1,950 45,571
On Assignment, Inc. * 1,320 7,379
PAREXEL International Corp. * 1,840 32,881
Pharmaceutical Product Development, Inc. * + 4,150 123,629
Pre-Paid Legal Services, Inc. * + 1,340 32,803
PRG-Schultz International, Inc. * 2,805 12,342
SOURCECORP, Inc. * 1,300 34,450
Spherion Corp. * 3,956 40,470
Startek, Inc. 1,170 42,518
The Nautilus Group, Inc. + 2,460 38,745
Volt Information Sciences, Inc. * 1,230 30,061
Watson Wyatt & Co. Holdings * 2,400 60,576
------------
1,337,637
------------
COMMUNICATIONS SERVICES (0.28%)
Webex Communications * + 3,190 94,839
------------
COMPUTER HARDWARE (0.23%)
Hutchinson Technology, Inc. * 2,020 56,681
Talx Corp. 1,050 23,047
------------
79,728
------------
COMPUTER SERVICES (0.97%)
CACI International, Inc. * 2,220 95,460
Carreker Corp. * 1,730 13,702
Ciber, Inc. * 3,930 43,230
Factset Research Systems, Inc. 2,560 108,954
Manhattan Associates, Inc. * 2,300 63,940
SCM Microsystems, Inc. * 830 5,569
------------
330,855
------------
COMPUTER SOFTWARE (3.95%)
American Management Systems * 2,878 55,258
Ansys, Inc. * 1,280 50,867
Avid Technology, Inc. * 2,350 108,405
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Barra, Inc. 1,530 $ 53,535
Captaris, Inc. * 1,190 6,545
Concord Communications, Inc. * 1,370 19,742
Digi International, Inc. * 1,320 13,028
eFunds Corp. * 3,260 53,464
EPIQ Systems, Inc. * + 1,320 21,622
Filenet Corp. * 2,842 75,739
Global Payments, Inc. 2,830 127,576
Hyperion Solutions Corp. * 3,036 125,842
Inter-Tel, Inc. 1,950 58,617
JDA Software Group, Inc. * 2,140 31,137
Mantech International Corp. * 2,300 47,127
Mapinfo Corp. * 1,110 14,164
Midway Games, Inc. * + 2,250 16,380
MRO Software, Inc. * 1,810 21,032
Netegrity, Inc. * 2,220 18,870
PC-Tel, Inc. * 1,560 16,115
Phoenix Technologies Ltd. * 1,340 7,223
Pinnacle Systems, Inc. * 4,070 36,752
Progress Software Corp. * 2,566 61,558
Roxio, Inc. * + 1,700 7,599
Serena Software, Inc. * + 2,910 59,219
SPSS, Inc. * 1,390 25,437
Take-Two Interactive Software * 3,300 121,374
THQ, Inc. * 2,805 56,745
Verity, Inc. * 2,710 37,046
------------
1,348,018
------------
COMPUTERS-INTEGRATED SYSTEMS (0.95%)
Agilysys, Inc. 2,110 25,109
Brooktrout, Inc. * 1,010 20,038
Catapult Communications Corp. * 1,060 18,899
Kronos, Inc. * 2,350 76,445
Mercury Computer Systems, Inc. * 1,670 42,585
Micros Systems, Inc. * 1,460 65,919
NYFIX, Inc. * 1,560 8,050
Radiant Systems, Inc. * 1,490 8,958
Radisys Corp. * 1,430 29,887
Safenet, Inc. * 733 27,517
------------
323,407
------------
CONSUMER PRODUCTS (0.68%)
Fossil, Inc. * 3,600 120,060
Russ Berrie & Co., Inc. 1,868 65,380
Wd-40 Co. 1,350 47,250
------------
232,690
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
DISTRIBUTION/WHOLESALE (1.42%)
Advanced Marketing Services 890 $ 8,811
Bell Microproducts, Inc. * 1,560 11,232
Hughes Supply, Inc. 2,275 119,210
Owens & Minor, Inc. 2,794 70,688
SCP Pool Corp. * 2,790 103,955
United Stationers, Inc. * 2,600 109,460
Watsco, Inc. 2,065 59,885
------------
483,241
------------
DIVERSIFIED FINANCIAL SERVICES (1.03%)
Financial Federal Corp. * 1,430 47,805
Idine Rewards Network Financial * + 1,420 14,200
Investment Technology Group * 3,180 48,654
New Century Financial Corp. 2,629 127,664
Piper Jaffray Cos., Inc. * 1,660 89,889
SWS Group, Inc. 1,255 22,477
------------
350,689
------------
DIVERSIFIED HOLDINGS (0.13%)
CP HOLDRS 40 2,351
Roto-Rooter, Inc. 805 40,693
------------
43,044
------------
DIVERSIFIED MANUFACTURING (1.74%)
Acuity Brands, Inc. 3,060 73,073
AO Smith Corp. 2,222 64,327
Aptargroup, Inc. 2,828 108,595
Barnes Group, Inc. 1,840 51,318
Griffon Corp. * 2,150 46,440
Immucor, Inc. * 1,440 26,093
Lydall, Inc. * 650 6,630
Myers Industries, Inc. 1,510 18,573
Roper Industries, Inc. 2,736 132,012
Standex International Corp. 1,170 31,590
Tredegar Corp. 2,404 35,170
------------
593,821
------------
E-COMMERCE (0.02%)
QRS Corp. * 1,120 6,317
------------
ELECTRICAL COMPONENTS (0.64%)
Advanced Energy Industries, Inc. * 2,460 50,159
Artesyn Technologies, Inc. * 2,630 25,038
Belden, Inc. 1,880 35,664
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
C&D Technologies, Inc. 1,850 $ 30,913
Intermagnetics General Corp. * 1,298 34,397
Magnetek, Inc. * 830 6,275
Vicor Corp. * 2,909 35,693
------------
218,139
------------
ELECTRONIC COMPONENTS (1.38%)
Bel Fuse, Inc. 1,000 32,740
Benchmark Electronics, Inc. * 3,070 96,644
CTS Corp. 2,540 33,122
Cubic Corp. 1,990 51,740
Daktronics, Inc. * 1,420 32,049
DSP Group, Inc. * 2,130 54,805
Methode Electronics 2,230 28,767
Planar Systems, Inc. * 1,060 15,084
Rogers Corp. * 1,370 73,117
Technitrol, Inc. * 2,880 54,144
------------
472,212
------------
ELECTRONIC INSTRUMENTS (1.51%)
BEI Technologies, Inc. 1,140 25,604
Coherent, Inc. * 2,270 59,678
Cymer, Inc. * 2,740 105,792
Dionex Corp. * 1,688 89,126
Electro Scientific Industries, Inc. * 2,390 56,261
Meade Instruments Corp. * 1,160 4,686
Photon Dynamics, Inc. * 1,240 40,461
Watts Industries, Inc. 2,380 55,668
Woodward Governor Co. 950 60,553
X-Rite, Inc. 1,240 18,464
------------
516,293
------------
ELECTRONIC MEASURING INSTRUMENTS (1.00%)
Analogic Corp. 1,230 55,953
FEI Co. * 2,480 54,188
Flir Systems, Inc. * 2,480 94,538
Itron, Inc. * 1,510 28,101
Keithley Instruments, Inc. 1,180 24,438
Trimble Navigation Ltd. * 3,705 84,956
------------
342,174
------------
ELECTRONICS (0.80%)
Brady Corp. 1,900 72,352
Checkpoint Systems, Inc. * 2,420 45,738
Invision Technologies, Inc. * 1,280 63,578
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Park Electrochemical Corp. 1,624 $ 41,087
Paxar Corp. * 2,109 31,108
SBS Technologies, Inc. * 1,160 17,933
------------
271,796
------------
ENGINEERING SERVICES (0.43%)
EMCOR Group, Inc. * 1,260 46,242
Insituform Technologies, Inc. * 1,800 28,134
URS Corp. * 2,460 70,799
------------
145,175
------------
ENVIRONMENTAL CONTROL (0.65%)
Ionics, Inc. * + 1,775 50,410
Tetra Tech, Inc. * 3,943 84,617
Waste Connections, Inc. * 2,190 87,162
------------
222,189
------------
FILTRATION PRODUCTS (0.46%)
Clarcor, Inc. 2,100 92,715
Cuno, Inc. * 1,440 64,627
------------
157,342
------------
FOOD (2.09%)
American Italian Pasta Co. + 1,420 56,701
Corn Products International, Inc. 2,820 112,800
Flowers Industries, Inc. 3,290 86,330
Great Atlantic & Pacific Tea Co. * 2,440 18,886
Hain Celestial Group, Inc. * 2,460 54,341
International Multifoods Corp. * 1,390 34,361
J&J Snack Foods Corp. * 880 39,758
Nash Finch Co. 1,930 31,633
Performance Food Group Co. * 930 22,022
Ralcorp Holdings, Inc. * 3,440 118,164
United Natural Foods, Inc. * 2,150 65,424
1,510 72,616
------------
713,036
------------
FOREST PRODUCTS & PAPER (0.49%)
Buckeye Technologies, Inc. * 1,940 20,098
Caraustar Industries, Inc. * 1,805 21,028
Deltic Timber Corp. 1,130 40,092
Pope & Talbot, Inc. 1,205 20,714
Rock-Tenn Co. 2,000 28,840
Wausau-Mosinee Paper Corp. 2,620 36,916
------------
167,688
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
GARDEN PRODUCTS (0.36%)
Toro Co. 1,988 $ 123,256
------------
HAND/MACHINE TOOLS (0.29%)
Baldor Electric Co. 2,350 54,003
Milacron, Inc. * 1,770 6,142
Regal-Beloit Corp. 1,928 38,521
------------
98,666
------------
HEALTHCARE PRODUCTS (6.46%)
Advanced Medical Optics, Inc. * 2,130 51,972
American Healthways, Inc. * + 2,340 57,143
American Medical Systems Holdings, Inc. * 2,460 65,190
Arthrocare Corp. * 1,560 36,052
Biosite, Inc. * + 1,200 38,364
Centene Corp. * 1,530 46,803
Conmed Corp. * 2,150 63,511
Cooper Cos., Inc. 2,370 127,980
Cross Country Healthcare, Inc. * 2,270 37,795
Datascope Corp. 1,230 43,222
Diagnostic Products Corp. 2,220 96,126
Haemonetics Corp. * 1,790 56,296
Hologic, Inc. * 1,470 29,768
ICU Medical, Inc. * + 1,080 32,800
Idexx Laboratories, Inc. * 2,669 151,786
Inamed Corp. * 2,620 139,594
Invacare Corp. 2,366 106,801
Mentor Corp. 3,276 98,608
Natures Sunshine Products, Inc. 730 10,833
NBTY, Inc.* 4,933 183,409
Odyssey Healthcare, Inc. * 2,665 50,235
PolyMedica Corp. + 1,920 51,494
Resmed, Inc. * 2,560 115,686
Respironics, Inc. * 2,670 144,233
Sola International, Inc. * 2,300 53,475
SurModics, Inc. * + 1,320 26,281
Sybron Dental Specialties, Inc. * 2,790 76,028
Techne Corp. * 3,100 126,511
UnitedHealth Group, Inc. 1 64
Viasys Healthcare, Inc. * 2,210 49,990
Vital Signs, Inc. 1,103 37,204
------------
2,205,254
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
HEALTHCARE SERVICES (2.37%)
AMERIGROUP Corp. * 1,830 $ 83,631
Amsurg Corp. * 2,265 51,438
Curative Health Services, Inc. * 690 9,246
Orthodontic Centers Of America * + 2,860 22,594
Pediatrix Medical Group, Inc. * 1,790 112,770
Province Healthcare Co. * 3,370 53,583
RehabCare Group, Inc. * 1,240 24,651
Renal Care Group, Inc. * 3,630 166,109
Sierra Health Services * 2,030 73,892
Sunrise Assisted Living, Inc. * + 1,540 55,209
United Surgical Partners International, Inc. * 2,060 69,916
US Oncology, Inc. * 5,790 85,576
------------
808,615
------------
HOME BUILDERS (2.93%)
Champion Enterprises, Inc. * 4,105 43,513
Coachmen Industries, Inc. 1,120 18,682
Fleetwood Enterprises, Inc. * + 2,770 34,016
MDC Holdings, Inc. 2,482 174,705
Monaco Coach Corp. 2,235 59,898
NVR, Inc. * 500 230,000
Ryland Group, Inc. 1,888 167,711
Skyline Corp. 950 36,642
Standard-Pacific Corp. 2,510 150,600
Winnebago Industries 2,680 83,536
------------
999,303
------------
HOME FURNISHINGS (0.66%)
Bassett Furniture Industries, Inc. 988 19,592
Ethan Allen Interiors, Inc. 2,906 119,902
La-Z-Boy, Inc. 3,903 84,929
------------
224,423
------------
HOTELS & MOTELS (0.10%)
Prime Hospitality Corp. * 2,890 32,888
------------
HOUSEWARES (0.19%)
Enesco Group, Inc. * 390 4,485
Libbey, Inc. 1,100 28,523
National Presto Industries, Inc. 870 33,721
------------
66,729
------------
INSURANCE (2.06%)
Delphi Financial Group 2,373 99,713
Hilb Rogal & Hamilton Co. 2,700 102,870
Landamerica Financial Group, Inc. 1,530 69,248
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Philadelphia Consolidated Holding Co. * 1,680 $ 97,440
Presidential Life Corp. 1,910 28,612
RLI Corp. 1,880 72,568
SCPIE Holdings, Inc. 610 5,002
Selective Insurance Group 2,028 71,122
Stewart Information Services Corp. 1,420 55,806
UICI * 2,830 41,771
Zenith National Insurance Corp. + 1,538 60,290
------------
704,442
------------
INTERNET SERVICES & SOFTWARE (0.35%)
J2 Global Communications, Inc. * + 1,720 38,803
Websense, Inc. * 1,710 50,633
Zix Corp. * + 2,080 30,326
------------
119,762
------------
LEISURE & RECREATION (0.21%)
Bally Total Fitness Holding Corp. * 1,680 9,845
K2, Inc. * 2,500 40,075
Pegasus Solutions, Inc. * 1,750 20,440
------------
70,360
------------
MACHINERY-DIVERSIFIED (2.39%)
Albany International Corp. 2,550 68,569
Applied Industrial Technologies, Inc. 1,480 33,626
Astec Industries, Inc. * 1,320 21,265
Briggs & Stratton 1,830 123,470
Brooks-PRI Automation, Inc. * 3,270 68,605
Cognex Corp. 3,317 110,290
Gardner Denver, Inc. * 1,340 36,287
Gerber Scientific, Inc. * 1,491 10,139
IDEX Corp. 2,680 116,526
JLG Industries, Inc. 2,970 42,471
Lindsay Manufacturing Co. 1,049 25,260
Manitowoc Co. 2,057 60,846
Robbins & Meyers, Inc. 1,170 25,214
Stewart & Stevenson Services 1,770 25,877
Thomas Industries, Inc. 1,540 48,510
------------
816,955
------------
MEDIA (0.17%)
4kids Entertainment, Inc. * 1,070 23,936
Information Holdings, Inc. * 1,630 33,611
------------
57,547
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
MEDICAL INFORMATION SYSTEMS (0.71%)
Cerner Corp. * + 2,690 $ 121,561
Dendrite International, Inc. * 2,965 47,440
NDCHealth Corp. 2,666 72,382
------------
241,383
------------
METAL FABRICATION (2.00%)
AM Castle & Co. * 757 6,843
Carpenter Technology 1,800 59,184
Commercial Metals Co. 2,160 68,774
Intermet Corp. 260 1,170
Kaydon Corp. 2,160 59,465
Lawson Products 1,010 32,936
Maverick Tube Corp. * 3,080 72,534
Mueller Industries, Inc. 2,622 89,122
Quanex Corp. 1,358 57,701
Shaw Group, Inc. * + 4,060 44,010
Timken Co. 6,510 151,227
Valmont Industries, Inc. 1,680 33,566
Wolverine Tube, Inc. * 825 6,922
------------
683,454
------------
METALS (0.80%)
Cleveland-Cliffs, Inc. * 840 54,961
Material Sciences Corp. * 630 6,930
Reliance Steel & Aluminum Co. 2,465 86,645
Ryerson Tull, Inc. 1,740 22,777
Steel Dynamics, Inc. * 3,580 88,712
Steel Technologies, Inc. 740 14,297
------------
274,322
------------
MILITARY DEFENSE (0.28%)
Engineered Support Systems, Inc. 1,990 97,092
------------
MINING (0.65%)
Brush Engineered Materials, Inc. * 1,270 25,743
Century Aluminum Co. * 1,620 45,733
Commonwealth Industries, Inc. * 930 6,798
Massey Energy Co. 5,520 121,826
RTI International Metal, Inc. * 1,450 22,954
------------
223,054
------------
OFFICE EQUIPMENT (0.41%)
Global Imaging Systems, Inc. * 1,710 56,806
Imagistics International, Inc. * 1,420 62,551
Interface, Inc. * 2,468 19,621
------------
138,978
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
OFFICE SUPPLIES (0.41%)
John H. Harland Co. 2,180 $ 67,842
New England Business Services, Inc. 1,190 40,281
Standard Register Co. 1,990 31,900
------------
140,023
------------
OIL & GAS (5.80%)
Atwood Oceanics, Inc. * 1,350 48,047
Cabot Oil & Gas Corp. 2,391 73,069
CAL Dive International, Inc. * 2,570 66,383
CARBO Ceramics, Inc. 1,300 81,835
Cimarex Energy Co. * 2,900 83,810
Dril-Quip, Inc. * 1,050 17,262
Eagle Geophysical, Inc. * 65 -
Evergreen Resources, Inc. * 3,140 107,859
Frontier Oil Corp. 2,010 38,954
Hydril Co. * 1,570 41,134
Input/Output, Inc. * 2,704 20,956
Lone Star Technologies * 2,120 37,460
Newfield Exploration Co. * 4,202 201,402
Nuevo Energy Co. * 1,520 49,491
Oceaneering International, Inc. * 1,846 56,211
Patina Oil & Gas Corp. 5,136 134,820
Plains Resources, Inc. * 1,550 28,179
Prima Energy Corp. * 1,080 37,314
Remington Oil & Gas Corp. * 1,850 36,538
Seacor Smit, Inc. * 1,680 69,014
Southwestern Energy Co. * 2,490 60,059
Spinaker Exploration Co. * 2,480 89,082
St. Mary Land & Exploration Co. 2,060 68,866
Stone Energy Corp. * 2,090 103,371
Swift Energy Co. * 1,990 37,511
Tetra Technologies, Inc. * 1,755 45,858
Tom Brown, Inc. * 3,400 127,840
Unit Corp. * 3,060 83,905
Veritas DGC, Inc. * + 2,350 48,645
Vintage Petroleum, Inc 4,206 61,660
W-H Energy Services, Inc. * 1,490 21,560
------------
1,978,095
------------
PACKAGING & CONTAINERS (0.09%)
Chesapeake Corp. 1,330 31,747
------------
PHARMACEUTICALS (1.51%)
Accredo Health, Inc. * 3,560 135,636
Alpharma, Inc. 3,790 74,322
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Cima Labs, Inc. * 1,170 $ 36,773
Medicis Pharmaceutical 4,110 164,400
Noven Pharmaceuticals, Inc. * 1,710 36,714
Priority Healthcare Corp. * 3,158 67,234
------------
515,079
------------
PHOTOGRAPHY EQUIPMENT (0.03%)
Concord Camera Photo Equipment * 1,740 10,927
------------
PUBLISHING (0.09%)
Thomas Nelson, Inc. 1,150 31,303
------------
REAL ESTATE INVESTMENT TRUSTS (2.42%)
Capital Automotive REIT 2,750 97,103
Colonial Properties Trust 2,540 103,632
Commercial Net Lease Realty 2,490 49,178
Essex Property Trust, Inc. 2,120 138,860
Gables Residential Trust 2,580 93,525
Glenborough Realty Trust, Inc. 2,030 45,371
Kilroy Realty Corp. 2,400 85,200
Lexington Corporate Properties Trust 2,860 62,319
Shurgard Storage Centers, Inc. 3,760 150,024
------------
825,212
------------
RECREATIONAL VEHICLES (0.95%)
Arctic Cat, Inc. 1,780 45,372
Polaris Industries, Inc. 3,560 161,766
Thor Industries, Inc. 4,310 115,767
------------
322,905
------------
RECYCLING (0.01%)
IMCO Recycling, Inc. * 460 4,333
------------
RETAIL-APPAREL (2.34%)
Brown Shoe Co., Inc. 1,499 54,609
Burlington Coat Factory Warehouse Corp. 3,300 65,340
Cato Corp. 1,600 32,128
Childrens Place * + 2,070 64,108
Christopher & Banks Corp. 2,790 58,897
Dress Barn, Inc. * 2,132 37,395
Genesco, Inc. * 1,670 38,711
Goody's Family Clothing, Inc. 1,850 26,400
HOT Topic, Inc. * 3,605 95,352
Men's Wearhouse, Inc. * 2,875 76,389
Pacific Sunwear Of California * 5,833 143,142
Stein Mart, Inc. * 2,770 38,226
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Too, Inc. * 2,590 $ 54,260
Wet Seal, Inc. * 1,750 14,437
------------
799,394
------------
RETAIL-AUTO PARTS (0.67%)
Group 1 Automotive, Inc. * 1,780 64,436
PEP Boys-Manny Moe & Jack 4,050 112,388
TBC Corp. * 1,740 51,104
------------
227,928
------------
RETAIL-BEDDING (0.56%)
Linens 'N Things, Inc. * 3,400 120,394
Select Comfort Corp. * + 2,530 69,803
------------
190,197
------------
RETAIL-COMPUTER EQUIPMENT (0.36%)
Electronics Boutique Holdings Corp. * 1,890 55,490
Insight Enterprises, Inc. * 3,435 66,124
------------
121,614
------------
RETAIL-CONSUMER ELECTRONICS (0.01%)
Ultimate Electronics, Inc. * 780 5,093
------------
RETAIL-CONVENIENCE STORE (0.16%)
Casey's General Stores, Inc. 3,392 56,307
------------
RETAIL-DISCOUNT (0.31%)
Fred's, Inc. 2,950 71,596
ShopKo Stores, Inc. * 2,324 33,977
------------
105,573
------------
RETAIL-DRUG STORE (0.09%)
Duane Reade, Inc. * 1,740 29,476
------------
RETAIL-FABRIC STORE (0.20%)
Hancock Fabrics, Inc. 1,300 20,657
Jo-Ann Stores, Inc. * 1,692 47,461
------------
68,118
------------
RETAIL-GARDENING PRODUCTS (0.32%)
Tractor Supply * 2,820 109,190
------------
RETAIL-HOME FURNISHINGS (0.32%)
Cost Plus, Inc. * 1,700 70,975
Haverty Furniture Cos., Inc. 1,720 36,602
------------
107,577
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
RETAIL-JEWELRY (0.37%)
Zale Corp. * 2,050 $ 126,177
------------
RETAIL-MAIL ORDER (0.09%)
J. Jill Group, Inc. * 1,470 30,164
------------
RETAIL-MUSIC (0.20%)
Guitar Center, Inc. * 1,830 67,966
------------
RETAIL-OFFICE SUPPLIES (0.15%)
School Specialty, Inc. * 1,480 52,644
------------
RETAIL-PAWN (0.14%)
Cash America International, Inc. 2,060 47,483
------------
RETAIL-RESTAURANTS (1.50%)
CEC Entertainment, Inc. * 3,243 112,532
Ihop Corp. 2,100 72,324
Landry's Restaurants, Inc. 2,350 70,101
P.F. Chang's China Bistro, Inc. * + 2,190 110,179
Panera Bread Co. * + 2,410 93,797
Papa John's International, Inc. * 1,560 52,790
------------
511,723
------------
RETAIL-VIDEO RENTAL (0.13%)
Movie Gallery, Inc. 2,300 45,057
------------
SAVINGS & LOANS (2.61%)
Anchor Bancorp Wisconsin, Inc. 1,580 40,369
Bankunited Financial Corp. * 2,250 66,825
Commercial Federal Corp. 3,080 85,008
Dime Community Bancshares 2,797 56,919
Downey Financial Corp. 2,296 121,459
FirstFed Financial Corp. * 1,410 65,043
Flagstar Bancorp, Inc. 4,290 110,039
MAF Bancorp, Inc. 2,640 114,734
Seacoast Financial Services Corp. 1,960 65,660
Staten Island Bancorp, Inc. 4,130 102,754
Waypoint Financial Corp. 2,361 63,322
------------
892,132
------------
SEMICONDUCTORS (3.21%)
Actel Corp. * 1,980 44,807
Alliance Semiconductor Corp. * 2,220 16,894
ATMI, Inc. * 2,400 63,168
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Axcelis Technologies, Inc. * 6,910 $ 76,839
Cohu, Inc. 1,680 31,332
Dupont Photomasks, Inc. * 1,520 35,355
ESS Technology * 2,800 41,048
Exar Corp. * 3,010 55,685
Helix Technology Corp. 2,000 48,500
Kopin Corp. * 3,910 22,600
Kulicke & Soffa Industries, Inc. * 3,550 41,606
Microsemi Corp. * 4,300 58,824
Pericom Semiconductor Corp. * 1,570 18,024
Photronics, Inc. * 2,390 42,399
Power Integrations, Inc. * 2,310 67,752
Rudolph Technologies, Inc. * 1,280 23,974
Skyworks Solutions, Inc. * 10,700 124,762
Standard Microsystems Corp. * 1,440 38,362
Supertex, Inc. * 1,030 17,180
Three-Five Systems, Inc. * 1,150 7,532
Ultratech Stepper, Inc. * 1,780 41,492
Varian Semiconductor Equipment Associates, Inc. * 2,730 114,660
Veeco Instruments, Inc. * 2,250 63,113
------------
1,095,908
------------
STORAGE/WAREHOUSING (0.06%)
Mobile Mini, Inc. * + 1,090 18,857
------------
TELECOMMUNICATIONS (2.00%)
Adaptec, Inc. * 7,010 61,408
Aeroflex, Inc. * 4,745 63,868
Anixter International, Inc. 2,726 77,009
Audiovox Corp. * 1,990 39,800
Black Box Corp. 1,460 78,241
Boston Communications Group * 960 11,376
Cable Design Technologies Corp. * + 2,570 24,364
C-COR.net Corp. * 3,010 42,200
Commonwealth Telephone Enterprises, Inc. * 1,890 77,509
General Communication * 3,130 28,483
Harmonic, Inc. * 5,010 48,347
Intrado, Inc. * 1,170 22,638
Network Equipment Technologies, Inc. * 1,570 15,669
Symmetricom, Inc. * 2,675 23,995
Tollgrade Communications, Inc. * 1,020 16,279
Viasat, Inc. * 2,000 49,760
------------
680,946
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
THERAPEUTICS (0.44%)
MGI Pharma, Inc. * 2,370 $ 145,186
Theragenics Corp. * 1,150 6,187
------------
151,373
------------
TOY/GAMES/HOBBIES (0.20%)
Action Performance Cos., Inc. 1,320 20,156
Department 56 * 1,500 22,170
Jakks Pacific, Inc. * + 1,820 27,300
------------
69,626
------------
TRANSPORTATION (2.24%)
Arkansas Best Corp. 1,890 50,633
EGL, Inc. * 3,250 58,370
Forward Air Corp. * 1,710 56,208
Heartland Express, Inc. 3,564 81,188
Kansas City Southern * 4,000 55,600
Kirby Corp. * 1,857 62,748
Knight Transportation, Inc. * 2,740 65,705
Landstar System, Inc. * 2,520 103,169
Offshore Logistics, Inc. * 1,710 39,415
SCS Transportation, Inc. * 1 22
USF Corp. 2,162 73,984
Yellow Corp. * 3,525 118,687
------------
765,729
------------
UTILITIES (3.61%)
American States Water Co. 1,095 26,718
Atmos Energy Corp. 3,456 88,370
Avista Corp. 3,150 59,598
Cascade Natural Gas Corp. 1,380 30,070
Central Vermont Public Sevice Corp. 1,640 36,900
CH Energy Group, Inc. 1,610 79,035
Cleco Corp. 2,990 56,900
El Paso Electric Co. * 2,320 32,109
Energen Corp. 2,790 115,087
Green Mountain Power Corp. 670 17,333
Laclede Group, Inc. 1,530 46,359
New Jersey Resources Corp. 2,084 78,775
Northwest Natural Gas Co. 1,802 56,312
NUI Corp. 980 16,572
Piedmont Natural Gas Co. 2,889 121,974
Southern Union Co. * 4,940 93,613
Southwest Gas Corp. 2,069 48,415
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
UGI Corp. 3,030 $ 99,748
UIL Holdings Corp. 1,381 66,523
Unisource Energy Corp. 2,460 60,442
------------
1,230,853
------------
TOTAL COMMON STOCK (Cost $28,369,885) 33,263,343
------------
MISCELLANEOUS INVESTMENTS (1.29%)
Midcap SPDR Trust Series 1 + 4,000 441,040
Other Investments + 1,500 41
------------
TOTAL MISCELLANEOUS INVESTMENTS (Cost $438,728) 441,081
------------
SHORT TERM INVESTMENTS (6.30%)
Deutsche Bank Tri-Part Agency Repurchase
Agreement, 1.06%, 04/01/04 # 1,843,847 1,843,847
Fifth Third Institutional Government
Money Market Fund, 0.79% ** 307,170 307,170
------------
TOTAL SHORT TERM INVESTMENTS (Cost $2,151,017) 2,151,017
TOTAL INVESTMENTS
(Cost $30,959,630) (105.07%) $35,855,441
LIABILITIES IN EXCESS
OF OTHER ASSETS (-5.07%) (1,731,455)
------------
NET ASSETS (100%) $34,123,986
============
Cost for federal income tax at March 31, 2004
was $30,990,445 and net unrealized
appreciation consisted of:
Gross unrealized appreciation $ 6,774,119
Gross unrealized depreciation (1,909,123)
------------
Net unrealized appreciation $ 4,864,996
============
* Non-income producing investment
** Rate shown represents the rate at March 31, 2004, is subject to change and
resets daily.
# Represents investment of cash received as collateral for securities on loan.
+ Portion or all of this security is on loan.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
COMMON STOCK (92.23%)
AUSTRIA (0.21%)
Telekom Austria AG ADR * 1,060 $ 30,284
------------
AUSTRALIA (5.11%)
Amcor Ltd. ADR 3,270 80,475
Ansell Ltd. ADR 1,150 24,150
Australia & New Zealand Banking Group Ltd. ADR 1,830 132,309
BHP Billiton Ltd. ADR 4,640 87,139
Coles Myer Ltd. ADR 1,630 80,196
CSR Ltd. ADR 1,360 7,398
National Australia Bank Ltd. ADR 930 110,121
Telstra Corp. Ltd. ADR 2,420 42,326
Westpac Banking Corp. ADR 2,720 182,077
------------
746,191
------------
BELGIUM (0.19%)
Delhaize Group ADR 600 27,906
------------
BRITAIN (22.93%)
Amersham Plc ADR 610 45,292
Amvescap Plc ADR 1,180 17,853
AstraZeneca Plc ADR 3,550 165,891
Barclays Plc ADR 4,840 174,918
BG Group Plc ADR 2,890 88,145
BOC Group Plc ADR 2,370 78,613
Boots Group Plc ADR 2,480 56,472
BP Plc ADR 7,410 379,392
British Airways Plc ADR * 310 15,810
British Sky Broadcasting Plc ADR 870 44,344
BT Group Plc ADR 1,970 65,778
Bunzl Plc ADR 1,580 67,024
Carnival Plc ADR 676 31,704
Galen Holdings Plc ADR 220 13,497
GlaxoSmithKline Plc ADR 6,520 260,474
Hanson Plc ADR 1,210 46,887
HSBC Holdings Plc ADR 4,970 371,756
Imperial Chemical Industries Plc ADR 1,120 18,782
International Power Plc ADR * 950 25,698
Kesa Electricals Plc 152 751
Kingfisher Plc ADR 1 5
Lloyds TSB Group Plc ADR 3,890 120,940
Marks & Spencer Group Plc ADR 1,600 49,137
National Grid Transco Plc ADR 2,660 107,012
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Prudential Plc ADR 3,080 $ 51,682
Reed Elsevier Plc ADR 1,610 57,155
Rentokil Initial Plc ADR 1,800 30,146
Reuters Group Plc ADR 680 29,131
Rexam Plc ADR 1,020 42,840
Rio Tinto Plc ADR 650 65,377
Scottish Power Plc ADR 2,350 66,646
Shell Transport & Trading Co. Plc ADR 1,130 45,098
Signet Group Plc ADR 420 26,040
Smith & Nephew Plc ADR 720 36,389
Tesco Plc ADR 6,500 88,072
Unilever Plc ADR 2,200 88,660
United Utilities Plc ADR 3,410 66,495
Vodafone Group Plc ADR 13,180 315,002
Wolseley Plc ADR 1,795 57,404
WPP Group Plc ADR 710 36,153
------------
3,348,465
------------
CHINA (0.25%)
PetroChina Co. Ltd. ADR 410 20,951
Yanzhou Coal Mining Co. Ltd. ADR 280 15,540
------------
36,491
------------
DENMARK (0.53%)
D/S Torm A/S ADR 490 29,223
Novo-Nordisk A/S ADR 1,040 48,287
------------
77,510
------------
FINLAND (1.80%)
Instrumentarium OYJ ADR 570 24,664
Nokia OYJ ADR 9,910 200,975
UPM-Kymmene OYJ ADR 2,020 37,330
------------
262,969
------------
FRANCE (7.56%)
Alcatel SA ADR 2,690 42,636
Aventis SA ADR 1,750 134,575
AXA ADR 4,650 97,603
Business Objects SA ADR * 480 13,680
Dassault Systemes SA ADR 470 19,599
Groupe Danone ADR 3,160 104,217
Lafarge SA ADR 3,160 64,496
Peugeot SA ADR 910 46,364
Publicis Groupe ADR 930 28,356
Sanofi-Synthelabo SA ADR 2,970 97,030
Sodexho Alliance SA ADR 1,110 33,522
Suez SA ADR 2,860 58,830
Technip SA ADR 870 30,102
Thomson ADR 1,040 19,396
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Total SA ADR 2,730 $ 251,160
Valeo SA ADR 1,130 23,440
Veolia Environnement ADR 1,370 38,374
------------
1,103,380
------------
GERMANY (5.75%)
Allianz AG ADR 6,040 65,957
Altana AG ADR 270 16,810
BASF AG ADR 1,870 95,557
Bayer AG ADR 2,510 61,244
Commerzbank AG ADR 990 16,765
Deutsche Telekom AG ADR * 5,610 101,204
E.ON AG ADR 1,720 113,554
Infineon Technologies AG ADR * 1,160 16,994
Pfeiffer Vacuum Technology AG ADR 500 17,995
RWE AG ADR 1,710 76,701
SAP AG ADR 1,820 71,544
Schering AG ADR 1,090 52,113
Siemens AG ADR 1,800 133,290
------------
839,728
------------
HONG KONG (1.35%)
CNOOC Ltd. ADR 1,430 61,490
Huaneng Power International, Inc. ADR 230 18,014
Hutchison Whampoa Ltd. ADR 3,270 117,519
------------
197,023
------------
IRELAND (1.04%)
Allied Irish Banks Plc ADR 2,370 70,981
Bank of Ireland ADR 1,250 63,188
Ryanair Holdings Plc ADR * 500 17,095
------------
151,264
------------
ITALY (3.19%)
Benetton Group SpA ADR 1,700 36,890
Ducati Motor Holding SpA ADR * 1,830 29,692
Enel SpA ADR + 3,490 142,706
Ente Nazionale Idrocarburi SpA ADR 1,610 162,529
Sanpaolo IMI SpA ADR 4,130 94,701
------------
466,518
------------
JAPAN (17.28%)
Advantest Corp. ADR 1,510 30,864
Bridgestone Corp. ADR 1,230 38,614
Canon, Inc. ADR 2,470 127,946
Casio Computer Co. Ltd. ADR 360 42,839
CSK Corp. ADR 540 23,549
Fuji Photo Film Co. Ltd. ADR 2,440 77,348
Fujitsu Ltd. ADR 2,130 68,076
Hitachi Ltd. ADR 1,230 95,386
Honda Motor Co. Ltd. ADR 4,510 104,361
Komatsu Ltd. ADR 1,590 40,348
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Konami Corp. ADR 640 $ 18,720
Kubota Corp. ADR 2,050 49,200
Kyocera Corp. ADR 520 43,649
Matsushita Electric Industrial Co. Ltd. ADR 6,130 94,525
Millea Holdings, Inc. ADR 1,500 116,625
Mitsubishi Corp. ADR 3,160 74,721
Mitsubishi Tokyo Financial Group, Inc. ADR 9,120 90,562
Mitsui & Co. Ltd. ADR 410 74,415
NEC Corp. ADR 4,160 34,154
Nidec Corp. ADR 1,420 36,991
Nintendo Co. Ltd. ADR 2,640 33,338
Nippon Telegraph & Telephone Corp. ADR 3,780 107,125
Nissan Motor Co. Ltd. ADR 3,460 76,155
Nomura Holdings, Inc. ADR 6,740 122,938
NTT DoCoMo, Inc. ADR 4,400 97,504
Olympus Corp. ADR 1,690 36,388
ORIX Corp. ADR 1,170 64,467
Pioneer Corp. ADR 1,340 39,342
QP Corp. ADR 2,230 38,626
Ricoh Co. Ltd. ADR 610 62,525
Sanyo Electric Co. Ltd. ADR 1,810 44,798
Sharp Corp. ADR 3,440 61,469
Shiseido Co. Ltd. ADR 1,870 24,374
Sony Corp. ADR 2,170 90,728
TDK Corp. ADR 540 40,916
Toyota Motor Corp. ADR 3,040 226,480
Wacoal Corp. ADR 1,390 72,322
------------
2,522,388
------------
NETHERLANDS (8.26%)
ABN AMRO Holding NV ADR 5,350 120,000
Aegon NV ADR 3,307 42,495
Akzo Nobel NV ADR 1,510 56,051
ASML Holding NV ADR * 1,120 20,530
Equant NV ADR * 3,370 61,671
Gucci Group NV 350 29,914
ING Groep NV ADR 5,720 126,126
James Hardie Industries NV ADR 1,720 42,536
Koninklijke Ahold NV ADR 2,400 19,800
Koninklijke Philips Electronics NV 3,250 94,185
Reed Elsevier NV ADR 2,240 59,360
Royal Dutch Petroleum Co. ADR 4,850 230,763
Royal KPN NV ADR 4,010 31,599
STMicroelectronics NV ADR 1,690 39,884
TPG NV ADR 2,660 56,365
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES VALUE
------ ------------
Unilever NV 1,660 $ 115,270
VNU NV ADR 1,300 37,223
Wolters Kluwer NV ADR 1,320 22,564
------------
1,206,336
------------
NEW ZEALAND (0.76%)
Telecom Corp. of New Zealand Ltd. ADR 3,540 110,696
------------
NORWAY (0.69%)
Norsk Hydro ASA ADR 1,430 100,772
------------
PORTUGAL (0.94%)
Banco Comercial Portugues SA ADR 2,030 18,514
Electricidade de Portugal SA ADR 4,210 119,017
------------
137,531
------------
SINGAPORE (0.92%)
DBS Group Holdings Ltd. ADR 2,480 85,219
United Overseas Bank Ltd. ADR 3,090 49,403
------------
134,622
------------
SPAIN (4.05%)
Banco Bilbao Vizcaya Argentaria SA ADR 9,310 123,637
Banco Santander Central Hispano SA ADR 10,870 119,353
Endesa SA ADR 5,220 95,161
Repsol YPF SA ADR 4,250 88,443
Telefonica SA ADR 3,614 164,582
------------
591,176
------------
SWEDEN (1.93%)
Electrolux AB ADR 760 31,289
Telefonaktiebolaget LM Ericsson ADR * 3060 84,915
Tele2 AB ADR * 440 20,196
SKF AB ADR 920 33,305
Svenska Cellulosa AB ADR 1,210 48,376
Volvo AB ADR 1,910 63,221
------------
281,302
------------
SWITZERLAND (7.49%)
Ciba Specialty Chemicals AG ADR 2,560 88,038
Compagnie Financiere Richemont AG ADR 2,420 65,044
Converium Holding AG ADR 2,130 52,334
Credit Suisse Group ADR 3,580 124,584
Holcim Ltd. ADR 2,410 64,442
Novartis AG ADR 6,930 295,218
Roche Holding AG ADR 2,170 211,973
Serono SA ADR 1,090 16,775
Swisscom AG ADR 1,950 64,311
Swiss Reinsurance ADR 1,070 73,735
Syngenta AG ADR 2,530 36,508
------------
1,092,962
------------
CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND
INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value
------- ------------
TOTAL COMMON STOCK (Cost $10,284,640) $13,465,514
------------
INVESTMENT COMPANIES (5.33%)
Ishares MSCI EAFE Index Fund + (Cost $761,825) 5,500 778,800
------------
PREFERRED STOCK (0.67%)
Premier Farnell Plc ADR (Cost $70,760) 3,860 97,948
------------
SHORT TERM INVESTMENTS (7.14%)
Deutsche Bank Tri-Part Agency Repurchase Agreement, 1.06%,
04/01/04 # 904,700 904,700
Fifth Third Institutional Government Money Market Fund, 0.97% ** 138,018 138,018
------------
TOTAL SHORT TERM INVESTMENTS (Cost $1,042,718) $ 1,042,718
------------
TOTAL INVESTMENTS (Cost $12,159,943) (105.37%) $15,384,980
LIABILITIES IN EXCESS OF OTHER ASSETS (-5.37%) (784,543)
NET ASSETS (100%) ------------
$14,600,437
============
Cost for federal income tax at March 31, 2004 was $12,160,132 and
net unrealized appreciation consisted of:
Gross unrealized appreciation $ 3,263,006
Gross unrealized depreciation (38,158)
Net unrealized appreciation -------------
$ 3,224,848
============
* Non-income producing investment
** Rate shown represents the rate at March 31, 2004, is subject to change and
resets daily.
# Represents investment of cash received as collateral for securities on loan.
+ Portion or all of this security is on loan.
ADR - American depository receipt
THE ACCOMPANYING NOTES ARE ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) MARCH 31, 2004
- --------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND LARGE CAP SMALL CAP INTERNATIONAL
BOND FUND FUND EQUITY FUND EQUITY FUND FUND
----------- ------------ ------------- ----------- -------------
ASSETS:
Investments, at value (identified cost $37,032,357,
$78,048,482, $97,280,334, $30,959,630 and
$12,159,943, respectively, including $9,777,401,
$16,127,075, $609,354, $1,769,091 and $891,399
of securities, respectively) $609,354,
$1,769,091 and $891,399 of securities loaned,
respectively) $37,266,077 $ 82,258,386 $ 93,131,404 $35,855,441 $ 15,384,980
Receivables:
Fund Share sold 27,143 151,235 237,729 100,324 64,000
Dividends and interest 290,263 779,407 100,721 22,791 54,635
Prepaid expenses 12,764 19,135 21,028 15,542 14,531
----------- ------------ ------------- ----------- ------------
Total assets 37,596,247 83,208,163 93,490,882 35,994,098 15,518,146
----------- ------------ ------------- ----------- ------------
LIABILITIES:
Payables:
Fund Share $ 4,500 $ 55,942 $ 3,491 $ -- $ 925
12b-1 fees 1,036 15,161 15,324 5,787 3,585
Due to Custodian 314 686 1,984 3,845 843
Due to Advisor 5,136 12,545 17,650 6,329 2,728
Accrued expenses 9,876 22,968 27,317 10,304 4,928
Payables upon return of securities loaned
(Note 8) 10,049,875 16,628,865 651,202 1,843,847 904,700
----------- ------------ ------------- ----------- ------------
Total liabilities 10,070,737 16,736,167 716,968 1,870,112 917,709
----------- ------------ ------------- ----------- ------------
NET ASSETS $27,525,510 $ 66,471,996 $ 92,773,914 $34,123,986 $ 14,600,437
=========== ============ ============= =========== ============
NET ASSETS CONSIST OF:
Paid-in Capital $27,151,151 $ 63,051,654 $ 105,121,170 $28,679,142 $ 26,010,636
Undistributed net investment income 26,478 88,196 8,257 5,514 14,782
Undistributed realized gain (loss) on investments 114,161 (877,758) (8,206,583) 543,519 (14,650,684)
Net unrealized appreciation (depreciation) on:
Investments 233,720 4,209,904 (4,148,930) 4,895,811 3,225,037
Translation of assets and liabilities in
foreign currencies -- -- -- -- 666
----------- ------------ ------------- ----------- ------------
NET ASSETS $27,525,510 $ 66,471,996 $ 92,773,914 $34,123,986 $ 14,600,437
=========== ============ ============= =========== ============
CLASS A SHARES (NOTE 1):
Net assets for 71,431, 1,985,508, 2,531,851, 731,782
and 586,154 shares outstanding, respectively $ 1,816,293 $ 51,694,754 $ 65,074,771 $24,729,042 $ 11,358,918
Net asset value, offering and redemption price per
Class A Share $ 25.43 $ 26.04 $ 25.70 $ 33.79 $ 19.38
CLASS C SHARES (NOTE 1):
Net assets for 1,011,801, 565,402, 1,072,643,
276,071 and 166,266 shares outstanding,
respectively $25,709,217 $ 14,777,242 $ 27,699,143 $ 9,394,944 $ 3,241,519
Net asset value, offering and redemption price per
Class C share $ 25.41 $ 26.14 $ 25.82 $ 34.03 $ 19.50
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED MARCH 31, 2004 (UNAUDITED)
- -------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND LARGE CAP SMALL CAP INTERNATIONAL
BOND FUND FUND EQUITY FUND EQUITY FUND FUND
--------- ---------- ----------- ----------- -----------
INVESTMENT INCOME:
Interest $ 350,750 $1,479,260 $ 1,873 $ 1,070 $ 502
Dividends (net of foreign taxes
withheld of $0 for the
International Fund) -- -- 767,211 133,146 133,074
Other income 2,982 9,673 593 3,458 465
--------- ---------- ----------- ---------- -----------
Total Investment Income 353,732 1,488,933 769,677 137,674 134,041
--------- ---------- ----------- ---------- -----------
EXPENSES:
Investment advisory fees (Note 4) 21,755 46,837 65,314 22,467 10,825
Administration fee (Note 4) 10,877 23,419 32,657 11,234 5,413
Accounting fees 13,706 29,507 41,147 14,155 6,819
Custodian fees 2,902 5,697 19,919 21,677 5,681
Transfer agency fees 5,874 12,646 17,635 6,066 2,923
Distribution fees - Class A
(Note 5) 904 59,961 74,900 26,611 12,538
Trustee expense 3,204 7,365 9,600 866 1,843
Audit fees 5,138 6,785 12,300 759 --
Legal fees 2,565 5,524 7,774 3,218 1,319
Consulting fees 3,955 7,852 10,613 2,319 1,225
Pricing fees 1,691 5,908 8,771 3,327 4,147
Registration fees 9,224 13,167 14,937 11,199 9,938
Reports to shareholders 1,646 2,213 3,401 966 758
Other 7,935 16,419 22,201 7,296 2,252
--------- ---------- ----------- ---------- -----------
Total expenses 91,376 243,300 341,169 132,160 65,681
--------- ---------- ----------- ---------- -----------
Net investment income 262,356 1,245,633 428,508 5,514 68,360
--------- ---------- ----------- ---------- -----------
REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY:
Net realized gain (loss) on:
Investments 153,557 51,485 114,829 1,457,420 799,800
Foreign currency
transactions -- -- -- -- (2)
Net unrealized appreciation
(depreciation) during the
period on:
Investments (101,690) 398,824 9,489,422 3,831,791 1,628,429
Translation of assets and
liabilities in foreign
currencies -- -- -- -- 159
--------- ---------- ----------- ---------- -----------
Net gain on investments and
foreign currency 51,867 450,309 9,604,251 5,289,211 2,428,386
--------- ---------- ----------- ---------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 314,223 $1,695,942 $10,032,759 $5,294,725 $ 2,496,746
========= ========== =========== ========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD ENDED MARCH 31, 2004 SHORT-TERM BOND LARGE CAP SMALL CAP INTERNATIONAL
(UNAUDITED) BOND FUND FUND EQUITY FUND EQUITY FUND FUND
------------ ------------- ------------- ------------ ------------
DECREASE IN NET ASSETS
Operations:
Net investment income $ 262,356 $ 1,245,633 $ 428,508 $ 5,514 $ 68,360
Net realized gain (loss) on:
Investments 153,557 51,485 114,829 1,457,420 799,800
Foreign currency transactions -- -- -- -- (2)
Net unrealized appreciation
(depreciation) during the period on:
Investments (101,691) 398,824 9,489,422 3,831,791 1,628,429
Translation of assets and
liabilities in foreign currencies -- -- -- -- 159
------------ ------------- ------------- ------------ ------------
Net increase in net assets resulting
from operations 314,222 1,695,942 10,032,759 5,294,725 2,496,746
------------ ------------- ------------- ------------ ------------
Distributions to shareholders from:
Net investment income
Class A (8,572) (918,510) (273,847) -- (37,169)
Class C (227,306) (290,556) (154,532) (4,563) (16,409)
Net realized gain
Class A (2,619) -- -- -- --
Class C (137,015) -- -- -- --
------------ ------------- ------------- ------------ ------------
Total Distributions (375,512) (1,209,066) (428,379) (4,563) (53,578)
------------ ------------- ------------- ------------ ------------
Increase (decrease) in net assets
from Fund share transactions (Note 6) (2,407,037) 4,718,195 2,235,478 3,390,306 (403,446)
------------ ------------- ------------- ------------ ------------
Increase (decrease) in net assets (2,468,327) 5,205,071 11,839,858 8,680,468 2,039,722
NET ASSETS:
Beginning of period 29,993,837 $ 61,266,925 $ 80,934,056 $ 25,443,518 $ 12,560,715
------------ ------------- ------------- ------------ ------------
End of period $ 27,525,510 $ 66,471,996 $ 92,773,914 $ 34,123,986 $ 14,600,437
============ ============= ============= ============ ============
FOR THE YEAR ENDED SEPTEMBER 30, 2003
DECREASE IN NET ASSETS
Operations:
Net investment income $ 816,752 $ 2,666,432 $ 834,336 $ 64,271 $ 228,561
Net realized gain (loss) on:
Investments 100,237 (166,756) (607,203) (263,926) (4,238,453)
Redemption in kind -- 2,422,668 (43,646,584) (6,889,572) (19,731,356)
Foreign currency transactions -- -- -- -- (17,216)
Net unrealized appreciation
(depreciation) during the period on:
Investments (360,874) (3,285,505) 68,660,427 14,852,488 29,342,597
Translation of assets and
liabilities in foreign
currencies -- -- -- -- (2,809)
------------ ------------- ------------- ------------ ------------
Net increase in net assets resulting
from operations 556,115 1,636,839 25,240,976 7,763,261 5,581,324
------------ ------------- ------------- ------------ ------------
Distributions to shareholders from:
Net investment income
Class A (11,188) (1,903,612) (472,401) (30,686) (113,932)
Class C (839,850) (777,583) (409,509) (29,022) (108,310)
Net realized gain
Class A (2,513) -- -- (395,330) --
Class C (259,990) -- -- (2,809,844) --
------------ ------------- ------------- ------------ ------------
Total Distributions (1,113,541) (2,681,195) (881,910) (3,264,882) (222,242)
------------ ------------- ------------- ------------ ------------
Decrease in net assets from Fund
share transactions (Note 6) (692,846) (41,307,173) (91,027,008) (53,895,508) (45,290,561)
------------ ------------- ------------- ------------ ------------
Decrease in net assets (1,250,272) (42,351,529) (66,667,942) (49,397,129) (39,931,479)
NET ASSETS:
Beginning of period 31,244,109 103,618,454 147,601,998 74,840,647 52,492,194
------------ ------------- ------------- ------------ ------------
End of period $ 29,993,837 $ 61,266,925 $ 80,934,056 $ 25,443,518 $ 12,560,715
============ ============= ============= ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
FINANCIAL HIGHLIGHTS
SHORT-TERM BOND FUND
- --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from
financial statements. They should be read in conjunction with the financial
statements and notes thereto.
CLASS A
-------
For the For the For the For the For the
Period Ended Year Ended Year Ended Year Ended Year Ended
March 31, September 30, September 30, September 30, September 30,
2004 2003 2002 2001 2000
------------ ------------- ------------- ------------- -------------
(Unaudited)
NET ASSET VALUE - BEGINNING OF PERIOD $25.48 $25.87 $25.66 $24.70 $24.68
----------- ------------- ------------- ------------- -------------
INVESTMENT OPERATIONS:
Net investment income 0.18 * 0.52 * 1.04 * 1.14 1.35
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 0.08 * (0.11)* 0.13 * 1.21 (0.05)
----------- ------------- ------------- ------------- -------------
Total from investment operations 0.26 0.41 1.17 2.35 1.30
----------- ------------- ------------- ------------- -------------
Distributions:
From net investment income (0.19) (0.57) (0.96) (1.39) (1.28)
From net realized capital gain (0.12) (0.22) -- -- --
From return of capital -- (0.01) -- -- --
----------- ------------- ------------- -------------- -------------
Total distributions (0.31) (0.80) (0.96) (1.39) (1.28)
----------- ------------- ------------- -------------- -------------
NET ASSET VALUE - END OF PERIOD $25.43 $25.48 $25.87 $25.66 $24.70
=========== ============= ============= ============== =============
TOTAL RETURN 1.01% 1.61% 4.68% 9.74% 5.42%
Ratios of expenses to average net assets:
before fee waivers 0.87% (1) 0.88% 0.81% 0.74% 0.72%
after fee waivers 0.87% (1) 0.88% 0.81% 0.74% 0.72%
Ratios of net investment income to average
net assets:
before fee waivers 1.57% (1) 2.00% 4.04% 5.32% 5.25%
after fee waivers 1.57% (1) 2.00% 4.04% 5.32% 5.25%
Portfolio turnover rate 61.76% 776.35% 27.77% 36.76% 55.28%
Net assets, end of period $1,816,293 $636,227 $292,996 $497,078 $26,583
(1) Annualized
* Based on the average daily number of shares outstanding throughout each
period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
FINANCIAL HIGHLIGHTS
SHORT-TERM BOND FUND
- --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from
financial statements. They should be read in conjunction with the financial
statements and notes thereto.
CLASS C
-------
For the For the For the For the For the
Period Ended Year Ended Year Ended Year Ended Year Ended
March 31, September 30, September 30, September 30, September 30,
2004 2003 2002 2001 2000
------------ ------------- ------------- ------------- -------------
(Unaudited)
NET ASSET VALUE - BEGINNING OF PERIOD $25.46 $25.85 $25.70 $24.74 $24.72
-------------- ------------- ------------- ------------- -------------
INVESTMENT OPERATIONS:
Net investment income 0.23 * 0.58 * 1.09 1.44 1.35
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 0.05 * (0.11)* 0.15 0.97 --
-------------- ------------- ------------- ------------- -------------
Total from investment operations 0.28 0.47 1.24 2.41 1.35
-------------- ------------- ------------- ------------- -------------
Distributions:
From net investment income (0.21) (0.63) (1.09) (1.45) (1.33)
From net realized capital gain (0.12) (0.22) -- -- --
From return of capital -- (0.01) -- -- --
-------------- ------------- ------------- ------------- -------------
Total distributions (0.33) (0.86) (1.09) (1.45) (1.33)
-------------- ------------- ------------- ------------- -------------
NET ASSET VALUE - END OF PERIOD $25.41 $25.46 $25.85 $25.70 $24.74
============== ============= ============= ============= =============
TOTAL RETURN 1.11% 1.86% 4.97% 9.98% 5.63%
Ratios of expenses to average net assets:
before fee waivers 0.62% (1) 0.63% 0.56% 0.49% 0.47%
after fee waivers 0.62% (1) 0.63% 0.56% 0.49% 0.47%
Ratios of net investment income to average
net assets:
before fee waivers 1.82% (1) 2.25% 4.29% 5.57% 5.50%
after fee waivers 1.82% (1) 2.25% 4.29% 5.57% 5.50%
Portfolio turnover rate 61.76% 776.35% 27.77% 36.76% 55.28%
Net assets, end of period $25,709,217 $29,357,610 $30,951,113 $27,759,257 $28,913,208
(1) Annualized
* Based on the average daily number of shares outstanding throughout each
period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
FINANCIAL HIGHLIGHTS
BOND FUND
- --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from
financial statements. They should be read in conjunction with the financial
statements and notes thereto.
CLASS A
-------
For the For the For the For the For the
Period Ended Year Ended Year Ended Year Ended Year Ended
March 31, September 30, September 30, September 30, September 30,
2004 2003 2002 2001 2000
------------ ------------- ------------- ------------- -------------
(Unaudited)
NET ASSET VALUE - BEGINNING OF PERIOD $25.84 $25.91 $25.08 $23.51 $23.36
------------ ------------- ------------- ------------ -------------
INVESTMENT OPERATIONS:
Net investment income 0.52 1.05 * 1.31 1.33 1.27
Net realized and unrealized gain
on investments and foreign currency
transactions 0.17 0.05 * 0.81 1.57 0.11
------------ ------------- ------------- ------------ -------------
Total from investment operations 0.69 1.10 2.12 2.90 1.38
------------ ------------- ------------- ------------ -------------
Distributions:
From net investment income (0.49) (1.17) (1.29) (1.33) (1.23)
------------ ------------- ------------- ------------ -------------
Total distributions (0.49) (1.17) (1.29) (1.33) (1.23)
------------ ------------- ------------- ------------ -------------
NET ASSET VALUE - END OF PERIOD $26.04 $25.84 $25.91 $25.08 $23.51
============ ============= ============= ============ =============
TOTAL RETURN 2.68% 4.33% 8.76% 12.56% 6.08%
Ratios of expenses to average net assets:
before fee waivers 0.84% (1) 0.86% 0.67% 0.64% 0.66%
after fee waivers 0.84% (1) 0.86% 0.67% 0.64% 0.66%
Ratios of net investment income to average
net assets:
before fee waivers 3.93% (1) 4.10% 5.10% 5.39% 5.31%
after fee waivers 3.93% (1) 4.10% 5.10% 5.39% 5.31%
Portfolio turnover rate 5.83% 94.61% 5.09% 8.94% 25.64%
Net assets, end of period $51,694,754 $46,473,576 $33,961,123 $17,461,376 $6,521,024
(1) Annualized
* Based on the average daily number of shares outstanding throughout
each period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
FINANCIAL HIGHLIGHTS
BOND FUND
- --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from
financial statements. They should be read in conjunction with the financial
statements and notes thereto.
CLASS C
-------
For the For the For the For the For the
Period Ended Year Ended Year Ended Year Ended Year Ended
March 31, September 30, September 30, September 30, September 30,
2004 2003 2002 2001 2000
------------ ------------- ------------- ------------- -------------
(Unaudited)
NET ASSET VALUE - BEGINNING OF PERIOD $25.94 $25.99 $25.16 $23.57 $23.40
------------ ------------- ------------- ------------ -------------
INVESTMENT OPERATIONS:
Net investment income 0.55 1.14 * 1.38 1.38 * 1.30
Net realized and unrealized gain
on investments and foreign currency
transactions 0.17 0.04 * 0.80 1.59 * 0.14
------------ ------------- ------------- ------------ -------------
Total from investment operations 0.72 1.18 2.18 2.97 1.44
------------ ------------- ------------- ------------ -------------
Distributions:
From net investment income (0.52) (1.23) (1.35) (1.38) (1.27)
------------ ------------- ------------- ------------ -------------
Total distributions (0.52) (1.23) (1.35) (1.38) (1.27)
------------ ------------- ------------- ------------ -------------
NET ASSET VALUE - END OF PERIOD $26.14 $25.94 $25.99 $25.16 $23.57
============ ============= ============= ============ =============
TOTAL RETURN 2.80% 4.64% 8.98% 12.86% 6.34%
Ratios of expenses to average net assets:
before fee waivers 0.59% (1) 0.61% 0.42% 0.39% 0.41%
after fee waivers 0.59% (1) 0.61% 0.42% 0.39% 0.41%
Ratios of net investment income to average
net assets:
before fee waivers 4.18% (1) 4.35% 5.35% 5.64% 5.56%
after fee waivers 4.18% (1) 4.35% 5.35% 5.64% 5.56%
Portfolio turnover rate 5.83% 94.61% 5.09% 8.94% 25.64%
Net assets, end of period $14,777,242 $14,793,349 $69,657,331 $74,356,919 $72,055,471
(1) Annualized
* Based on the average daily number of shares outstanding throughout each
period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
FINANCIAL HIGHLIGHTS
LARGE CAP EQUITY FUND
- --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from
financial statements. They should be read in conjunction with the financial
statements and notes thereto.
CLASS A
-------
For the For the For the For the For the
Period Ended Year Ended Year Ended Year Ended Year Ended
March 31, September 30, September 30, September 30, September 30,
2004 2003 2002 2001 2000
------------ ------------- ------------- ------------- -------------
(Unaudited)
NET ASSET VALUE - BEGINNING OF PERIOD $22.91 $18.76 $24.08 $34.49 $31.75
------------ ------------- ------------- ------------ -------------
INVESTMENT OPERATIONS:
Net investment income 0.11 * 0.22 0.23 * 0.19 * 0.16
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 2.79 * 4.18 (5.20)* (9.10)* 3.68
------------ ------------- ------------- ------------ -------------
Total from investment operations 2.90 4.40 (4.97) (8.91) 3.84
------------ ------------- ------------- ------------ -------------
Distributions:
From net investment income (0.11) (0.25) (0.23) (0.20) (0.22)
From net realized capital gain -- -- (0.12) (1.30) (0.88)
------------ ------------- ------------- ------------ -------------
Total distributions (0.11) (0.25) (0.35) (1.50) (1.10)
------------ ------------- ------------- ------------ -------------
NET ASSET VALUE - END OF PERIOD $25.70 $22.91 $18.76 $24.08 $34.49
============ ============= ============= ============ =============
TOTAL RETURN 12.68% 23.57% (20.97)% (26.64)% 12.07%
Ratios of expenses to average net assets:
before fee waivers 0.86% (1) 0.79% 0.64% 0.62% 0.63%
after fee waivers 0.86% (1) 0.79% 0.64% 0.62% 0.63%
Ratios of net investment income to average
net assets:
before fee waivers 0.91% (1) 0.99% 0.89% 0.66% 0.54%
after fee waivers 0.91% (1) 0.99% 0.89% 0.66% 0.54%
Portfolio turnover rate 19.42% 43.12% 9.76% 12.70% 36.64%
Net assets, end of period $65,074,771 $50,585,169 $26,477,099 $19,301,451 $10,619,367
(1) Annualized
* Based on the average daily number of shares outstanding throughout
each period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
FINANCIAL HIGHLIGHTS
LARGE CAP EQUITY FUND
- --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from
financial statements. They should be read in conjunction with the financial
statements and notes thereto.
CLASS C
-------
For the For the For the For the For the
Period Ended Year Ended Year Ended Year Ended Year Ended
March 31, September 30, September 30, September 30, September 30,
2004 2003 2002 2001 2000
------------ ------------- ------------- ------------- -------------
(Unaudited)
NET ASSET VALUE - BEGINNING OF PERIOD $23.01 $18.82 $24.15 $34.57 $31.79
------------ ------------ ------------- ------------ -------------
INVESTMENT OPERATIONS:
Net investment income 0.15 * 0.26 * 0.28 * 0.27 * 0.26
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 2.80 * 4.22 * (5.22)* (9.13)* 3.67
------------ ------------ ------------- ------------ -------------
Total from investment operations 2.95 4.48 (4.94) (8.86) 3.93
------------ ------------ ------------- ------------ -------------
Distributions:
From net investment income (0.14) (0.29) (0.27) (0.26) (0.27)
From net realized capital gain -- -- (0.12) (1.30) (0.88)
----------- ------------ ------------- ------------ -------------
Total distributions (0.14) (0.29) (0.39) (1.56) (1.15)
----------- ------------ ------------- ------------ -------------
NET ASSET VALUE - END OF PERIOD $25.82 $23.01 $18.82 $24.15 $34.57
=========== ============ ============= ============ =============
TOTAL RETURN 12.86% 23.92% (20.80)% (26.42)% 12.34%
Ratios of expenses to average net assets:
before fee waivers 0.61% (1) 0.54% 0.39% 0.37% 0.38%
after fee waivers 0.61% (1) 0.54% 0.39% 0.37% 0.38%
Ratios of net investment income to average
net assets:
before fee waivers 1.16% (1) 1.24% 1.14% 0.91% 0.79%
after fee waivers 1.16% (1) 1.24% 1.14% 0.91% 0.79%
Portfolio turnover rate 19.42% 43.12% 9.76% 12.70% 36.64%
Net assets, end of period $27,699,143 $30,348,887 $121,124,899 $153,664,795 $187,806,297
(1) Annualized
* Based on the average daily number of shares outstanding throughout
each period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
FINANCIAL HIGHLIGHTS
SMALL CAP EQUITY FUND
- --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from
financial statements. They should be read in conjunction with the financial
statements and notes thereto.
CLASS A
-------
For the For the For the For the For the
Period Ended Year Ended Year Ended Year Ended Year Ended
March 31, September 30, September 30, September 30, September 30,
2004 2003 2002 2001 2000
------------ ------------- ------------- ------------- -------------
(Unaudited)
NET ASSET VALUE - BEGINNING OF PERIOD $28.06 $23.40 $26.51 $34.52 $29.17
------------ ------------- ----------- ------------ -----------
INVESTMENT OPERATIONS:
Net investment income (loss) (0.01) 0.04 * 0.05 0.05 * 0.01
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 5.74 5.68 * 0.09 (3.82)* 6.94
------------ ------------- ----------- ------------ -----------
Total from investment operations 5.73 5.72 0.14 (3.77) 6.95
------------ ------------- ----------- ------------ -----------
Distributions:
From net investment income -- (0.06) (0.07) (0.05) (0.05)
From net realized capital gain -- (1.00) (3.18) (4.19) (1.55)
------------ ------------- ----------- ------------ -----------
Total distributions -- (1.06) (3.25) (4.24) (1.60)
------------ ------------- ----------- ------------ -----------
NET ASSET VALUE - END OF PERIOD $33.79 $28.06 $23.40 $26.51 $34.52
============ ============= =========== ============ ===========
TOTAL RETURN 20.42% 25.31% (1.66)% (12.00)% 24.68%
Ratios of expenses to average net assets:
before fee waivers 0.95% (1) 0.85% 0.70% 0.69% 0.66%
after fee waivers 0.95% (1) 0.85% 0.70% 0.69% 0.66%
Ratios of net investment income to average
net assets:
before fee waivers (0.03) (1) 0.12% 0.15% 0.14% 0.09%
after fee waivers (0.03) (1) 0.12% 0.15% 0.14% 0.09%
Portfolio turnover rate 30.69% 42.18% 35.33% 49.43% 53.16%
Net assets, end of period $24,729,042 $16,688,658 $8,989,110 $5,216,136 $2,428,801
(1) Annualized
* Based on the average daily number of shares outstanding throughout
each period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
FINANCIAL HIGHLIGHTS
SMALL CAP EQUITY FUND
- --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from
financial statements. They should be read in conjunction with the financial
statements and notes thereto.
CLASS C
-------
For the For the For the For the For the
Period Ended Year Ended Year Ended Year Ended Year Ended
March 31, September 30, September 30, September 30, September 30,
2004 2003 2002 2001 2000
------------ ------------- ------------- ------------- -------------
(Unaudited)
NET ASSET VALUE - BEGINNING OF PERIOD $28.23 $23.47 $26.59 $34.59 $29.21
------------ ------------ ------------ ------------ ------------
INVESTMENT OPERATIONS:
Net investment income 0.03 * 0.08 * 0.13 0.12 0.11
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 5.79 * 5.78 * 0.07 (3.81) 6.93
------------ ------------ ------------ ------------ ------------
Total from investment operations 5.82 5.86 0.20 (3.69) 7.04
------------ ------------ ------------ ------------ ------------
Distributions:
From net investment income (0.02) (0.10) (0.14) (0.12) (0.11)
From net realized capital gain -- (1.00) (3.18) (4.19) (1.55)
------------ ------------ ------------ ------------ ------------
Total distributions (0.02) (1.10) (3.32) (4.31) (1.66)
------------ ------------ ------------ ------------ ------------
NET ASSET VALUE - END OF PERIOD $34.03 $28.23 $23.47 $26.59 $34.59
============ ============ ============ ============ ============
TOTAL RETURN 20.61% 25.85% (1.46)% (11.75)% 24.98%
Ratios of expenses to average net assets:
before fee waivers 0.70% (1) 0.60% 0.45% 0.44% 0.41%
after fee waivers 0.70% (1) 0.60% 0.45% 0.44% 0.41%
Ratios of net investment income to average
net assets:
before fee waivers 0.22% (1) 0.37% 0.40% 0.39% 0.34%
after fee waivers 0.22% (1) 0.37% 0.40% 0.39% 0.34%
Portfolio turnover rate 30.69% 42.18% 35.33% 49.43% 53.16%
Net assets, end of period $9,394,944 $8,754,860 $65,851,537 $70,580,689 $88,360,329
(1) Annualized
* Based on the average daily number of shares outstanding throughout each
period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
FINANCIAL HIGHLIGHTS
INTERNATIONAL FUND
- --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from
financial statements. They should be read in conjunction with the financial
statements and notes thereto.
CLASS A
-------
For the Period For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
March 31, September 30, September 30, September 30, September 30,
2004 2003 2002 2001 2000
----------------- --------------- --------------- --------------- ----------------
(Unaudited)
NET ASSET VALUE - BEGINNING OF PERIOD $16.29 $14.55 $17.62 $26.03 $30.54
------------- ------------- ------------- ------------ ------------
INVESTMENT OPERATIONS:
Net investment income 0.08 0.20 0.21 0.33 * 1.70
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions 3.08 1.78 (3.06) (8.14)* (1.64)
------------- ------------- ------------- ------------ ------------
Total from investment
operations 3.16 1.98 (2.85) (7.81) 0.06
------------- ------------- ------------- ------------ ------------
Distributions:
From net investment income (0.07) (0.22) (0.22) (0.37) (1.14)
From net realized capital gain -- -- -- (0.23) (3.43)
From return of capital -- (0.02) -- -- --
------------- ------------- ------------- ------------ ------------
Total distributions (0.07) (0.24) (0.22) (0.60) (4.57)
------------- ------------- ------------- ------------ ------------
NET ASSET VALUE - END OF PERIOD $19.38 $16.29 $14.55 $17.62 $26.03
============= ============= ============= ============ ============
TOTAL RETURN 19.38% 13.68% (16.36)% (30.39) (1.22)%
Ratios of expenses to average net assets:
before fee waivers 0.99% (1) 1.10% 0.77% 0.71% 0.71%
after fee waivers 0.99% (1) 1.10% 0.77% 0.71% 0.71%
Ratios of net investment income to
average net assets:
before fee waivers 0.87% (1) 0.95% 1.12% 1.62% 4.44%
after fee waivers 0.87% (1) 0.95% 1.12% 1.62% 4.44%
Portfolio turnover rate 20.11% 414.62% 29.48% 68.11% 48.13%
Net assets, end of period $11,358,918 $8,101,972 $4,616,210 $3,331,656 $1,748,773
(1) Annualized
* Based on the average daily number of shares outstanding throughout each
period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
FINANCIAL HIGHLIGHTS
INTERNATIONAL FUND
- --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each fiscal year or period and other performance information derived from
financial statements. They should be read in conjunction with the financial
statements and notes thereto.
CLASS C
-------
For the Period For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
March 31, September 30, September 30, September 30, September 30,
2004 2003 2002 2001 2000
----------------- --------------- --------------- --------------- ----------------
(Unaudited)
NET ASSET VALUE - BEGINNING OF PERIOD $16.38 $14.58 $17.65 $26.06 $30.55
------------- ------------- ------------- ------------- -------------
INVESTMENT OPERATIONS:
Net investment income 0.10 * 0.37 0.25 0.41 1.37
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions 3.11 * 1.70 (3.07) (8.17) (1.24)
------------- ------------- ------------- ------------- -------------
Total from investment
operations 3.21 2.07 (2.82) (7.76) 0.13
------------- ------------- ------------- ------------- -------------
Distributions:
From net investment income (0.09) (0.25) (0.25) (0.42) (1.19)
From net realized capital gain -- -- -- (0.23) (3.43)
From return of capital -- (0.02) -- -- --
------------- ------------- ------------- ------------- -------------
Total distributions (0.09) (0.27) (0.25) (0.65) (4.62)
------------- ------------- ------------- ------------- -------------
NET ASSET VALUE - END OF PERIOD $19.50 $16.38 $14.58 $17.65 $26.06
============= ============= ============= ============= =============
TOTAL RETURN 19.61% 14.26% (16.18)% (30.19)% (0.98)%
Ratios of expenses to average net assets:
before fee waivers 0.74% (1) 0.85% 0.52% 0.46% 0.46%
after fee waivers 0.74% (1) 0.85% 0.52% 0.46% 0.46%
Ratios of net investment income to
average net assets:
before fee waivers 1.12% (1) 1.20% 1.37% 1.87% 4.69%
after fee waivers 1.12% (1) 1.20% 1.37% 1.87% 4.69%
Portfolio turnover rate 20.11% 414.62% 29.48% 68.11% 48.13%
Net assets, end of period $3,241,519 $4,458,743 $47,875,984 $58,468,898 $72,121,697
(1) Annualized
* Based on the average daily number of shares outstanding throughout each
period
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
================================================================================
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2004 (UNAUDITED)
================================================================================
(1) ORGANIZATION
The Capstone Social Ethics and Religious Values Fund (the "Trust") was
organized as a Massachusetts business trust on April 13, 1998 and is
registered under the Investment Company Act of 1940 (the "1940 Act") as a
diversified open-end management investment company. The Trust currently
consists of five diversified series: the Short-Term Bond Fund, the Bond
Fund, the Large Cap Equity Fund, the Small Cap Equity Fund, and the
International Fund (each a "Fund" and collectively the "Funds"). Between
the date of organization and October 1, 1998, the Funds had no operations
other than those relating to organizational matters and the sale of 1
Class A share and 1 Class C share of the Large Cap Equity Fund to Capstone
Asset Management Company ("Capstone"), the Trust's adviser and
administrator for $50, and the sale of 4,000 Class C shares of the Large
Cap Equity Portfolio to another shareholder for $100,000.
On October 1, 1998 each of the Funds acquired the net assets of separate
Portfolios of a tax-exempt business trust which had been managed by
Capstone. Each of these Portfolios had been managed following investment
objectives similar to those of the Funds and their net assets consisted
principally of investment securities. Class C shares of each Fund issued
to affect these acquisitions were distributed to each of the Portfolios'
beneficiaries in complete liquidation of the business trust.
The Trust is authorized to issue an unlimited number of shares of
beneficial interest of $1.00 par value. The Fund currently offers two
Classes of shares ("Class A" and "Class C"). Each Class of shares has
equal rights as to earnings, assets and voting privileges, except that
each Class bears different distribution expenses. Each Class of shares has
exclusive voting rights with respect to matters that affect just that
Class. Income, expenses (other than expenses attributable to a specific
Class) and realized and unrealized gains or losses on investments are
allocated to each Class of shares based on its relative net assets.
(2) INVESTMENT OBJECTIVES
As a matter of fundamental investment policy, each of the Funds will
invest in companies that are managed in a socially responsible manner,
reflecting certain ethical and religious values. Accordingly, the Funds
will not invest in companies whose primary business is the manufacturing,
operation or distribution of alcohol, caffeinated beverages or tobacco
products, meat packing, pornography, or casinos and other gambling
concerns.
The Short-Term Bond Fund's objective is to provide current income and
relative capital stability by attempting to match the price and yield
performance (before expenses) of a blended short-term index consisting of
one-third U.S. Treasury securities, one-third U.S. government securities
and one-third investment grade corporate obligations with maximum
maturities of three years.
The Bond Fund's objective is to provide current income by attempting to
match the price and yield performance (before expenses) of the Lehman
Brothers Government/Credit Bond Index. The Bond Fund will invest primarily
in obligations of the U.S. Government, its agencies and instrumentalities
and investment grade corporate obligations having a broad range of
maturities.
================================================================================
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MARCH 31, 2004 (UNAUDITED)
================================================================================
(2) INVESTMENT OBJECTIVES - (CONTINUED)
The Large Cap Equity Fund's objective is to provide capital growth and
income by attempting to match the performance, before expenses, of a
widely recognized index of large cap equities, which will be specified by
the Advisory Committee from time to time. The Large Cap Equity Fund will
invest primarily in the common stocks of large companies whose securities
are widely held and have an active trading market.
The Small Cap Equity Fund's objective is to provide capital appreciation
by attempting to match the performance, before expenses, of a widely
recognized index of small cap equities, which will be specified by the
Advisory Committee from time to time. The Small Cap Equity Fund will
invest primarily in equity securities of the type that are included in the
index.
The International Fund's objective is to provide capital appreciation by
attempting to match the performance and yield characteristics of the
Morgan Stanley Capital International Europe, Australia, Far East Index,
net of withholding taxes. The International Fund will invest primarily in
securities with characteristics generally comparable to those included in
this index or whose performance is expected to be comparable.
(3) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements.
These accounting policies are in accordance with accounting principles
generally accepted in the United States of America.
A. SECURITY VALUATION
Portfolio equity securities which are primarily traded on security
exchanges are valued at the last sale price on that exchange or, if
there is no recent last sale price available, at the last current
bid quotation. A security which is listed or traded on more than
one exchange is valued at the quotation on the exchange determined
to be the primary market for such security. All other equity
securities not so traded are valued at the last current bid
quotation prior to the time of valuation.
Money market securities held by the Funds are valued using the
amortized cost method of valuation, which in the opinion of the
Board of Trustees reflects fair value.
Other debt securities are valued by using market quotations or
independent pricing services which use prices provided by market
makers or estimates of market values obtained from yield data
relating to instruments or securities with similar characteristics.
Other securities, including restricted securities, and other assets
are valued at fair value as determined in good faith by the Board
of Trustees.
B. FOREIGN CURRENCY TRANSLATION
Portfolio securities and other assets and liabilities denominated
in foreign currencies are translated into U.S. dollars based on the
exchange rate of such currencies against U.S. dollars on the date
of valuation. Purchases and sales of securities and income items
denominated in foreign currencies are translated into U.S. dollars
at the exchange rate in effect on the transaction date.
================================================================================
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MARCH 31, 2004 (UNAUDITED)
================================================================================
(3) SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
The Funds do not separately report the effect of changes in foreign
exchange rates from changes in market prices on securities held.
Such changes are included in net realized and unrealized gain or
loss from investments.
Realized foreign exchange gains or losses arise from sales of
foreign currencies, currency gains or losses realized between the
trade and settlement dates on securities transactions and the
difference between the recorded amounts of dividends, interest and
foreign withholding taxes, and the U.S. dollar equivalent of the
amounts actually received or paid. Net unrealized foreign exchange
gains or losses arise from changes in foreign exchange rates on
foreign currency denominated assets and liabilities other than
investments in securities held at the end of the reporting period.
C. FEDERAL INCOME TAXES
It is the policy of the Funds to comply with the requirements of
the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of their taxable
income to their shareholders in a manner which results in no tax to
the Funds. Therefore, no federal income or excise tax provisions
are required.
Income and capital gains of the Funds are determined in accordance
with both tax regulations and accounting principles generally
accepted in the United States of America. Such may result in
temporary and permanent differences between tax basis earnings and
earnings reported for financial statement purposes. Temporary
differences that result in over-distributions for financial
statement purposes are classified as distributions in excess of net
investment income or accumulated net realized gains. Permanent
differences in the recognition of earnings are reclassified to
additional paid-in capital. Distributions in excess of tax-basis
earnings are recorded as return of capital.
D. SECURITY TRANSACTIONS, INCOME AND DISTRIBUTIONS
Security transactions are accounted for on the trade date. Realized
gains and losses on security transactions are determined on the
specific identification basis. Interest income on debt securities
is recorded on the accrual basis. Discounts and premiums on debt
securities are amortized to income over their respective lives.
Dividend income and distributions to shareholders are recorded on
the ex-dividend date.
E. FORWARD EXCHANGE CONTRACTS
The Funds may enter into forward exchange contracts to hedge
against foreign currency exchange risks. These contracts are valued
daily and any appreciation or depreciation therein is included in
the statement of assets and liabilities. Realized and unrealized
gains and losses are included in the statement of operations. As of
March 31, 2004, there were no forward exchange contracts
outstanding.
================================================================================
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MARCH 31, 2004 (UNAUDITED)
================================================================================
(3) SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
F. FUTURES CONTRACTS
The Funds may invest in financial futures contracts. Upon entering
into a futures contract, the Fund is required to deposit, with its
futures broker, cash or other securities equal to a certain
percentage of the futures contract amount ("initial margin").
During the term of the futures contract, payments are exchanged
daily between the Fund and the futures broker in amounts equal to
the appreciation or depreciation in the value of the futures
contract ("variation margin"). The Funds recognize gains or losses
equal to the variation margin payments paid or received. Futures
contracts involve market risks in excess of the amounts recognized
in the statement of assets and liabilities. Additionally, there is
a risk that a Fund may not be able to enter into a closing
transaction because of an illiquid secondary market. As of March
31, 2004, there were no future contracts outstanding.
G. REPURCHASE AGREEMENTS
In connection with transactions in repurchase agreements, it is the
Funds' policy that their custodian bank take possession of the
underlying collateral securities, the fair value of which must be
equal to the principal amount of the repurchase agreement including
accrued interest throughout the term of the repurchase agreement.
If the seller defaults and the fair value of the collateral
declines, realization of the collateral by the Funds may be delayed
or limited.
H. ORGANIZATION EXPENSES
Capstone has agreed to bear all of the costs incurred in connection
with the organization and registration of the Trust's shares. All
ongoing registration expenses will be paid by the Funds.
I. SECURITY LOANS
The Funds may receive fees or retain a portion of interest on the
cash received as collateral for lending securities. A Fund also
continues to receive interest or dividends on the securities
loaned. Securities loaned are secured by collateral whose market
value must always exceed the market value of the securities loaned
plus accrued interest. Gains or losses in the market price of the
securities loaned that may occur during the term of the loan are
reflected in the value of the Fund.
J. USE OF ESTIMATES
In preparing financial statements in accordance with accounting
principles generally accepted in the United States of America,
management is required to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.
================================================================================
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MARCH 31, 2004 (UNAUDITED)
================================================================================
(4) INVESTMENT ADVISER AND ADMINISTRATOR
Capstone serves as each Fund's adviser and administrator. Pursuant to the
terms of the Investment Advisory Agreement, Capstone shall have full
discretion to manage the assets of the Funds in accordance with their
investment objectives. As compensation for its services each Fund pays
Capstone, on a monthly basis, an investment advisory fee.
The advisory fees for the Funds are calculated at the annual rate of 0.15%
on the first $500 million of the Funds' collective average daily net
assets and then allocated to each Fund based upon relative net assets. The
rate declines to 0.10% on the next $250 million of average daily net
assets, 0.075% on the next $250 million of average daily net assets, and
to 0.05% on collective average daily net assets in excess of $1 billion.
Pursuant to the terms of the Administration Agreement, Capstone will
supervise the Funds' daily business affairs, coordinate the activities of
persons providing services to the Funds, and furnish office space and
equipment to the Funds. As compensation for its services Capstone receives
a monthly fee from each Fund calculated at the annual rate of 0.075% of
each Fund's average daily net assets.
(5) DISTRIBUTION PLAN AND OTHER TRANSACTIONS WITH AFFILIATES
Capstone Asset Planning Company (the "Distributor") serves as the Trust's
principal underwriter pursuant to a Distribution Agreement. The
Distributor is an affiliate of Capstone.
The Class A shares of each Fund have adopted a Service and Distribution
Plan (the "Plan") pursuant to Rule 12(b)-1 under the 1940 Act. The Plan
provides that the Class A shares will make payments to the Distributor to
compensate the Distributor for expenditures incurred by it in connection
with the distribution of Class A shares and for the provision of certain
stockholder services including but not limited to the payment of
compensation to security dealers and other financial organizations to
obtain various distribution related and/or administrative services for the
Fund. As compensation for its services the Distributor receives a monthly
fee calculated at the annual rate of 0.25% of the average daily net assets
of the Class A shares of each Fund.
Certain officers of the Trust are also officers of Capstone and the
Distributor.
(6) SHARES OF CAPITAL STOCK
All Funds - The authorized capital stock of the funds is unlimited in
shares, with a par value of $1.00 per share. Transactions in shares of
capital stock, for the six month period from October 1, 2003 to March 31,
2004 were as follows:
================================================================================
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MARCH 31, 2004 (UNAUDITED)
================================================================================
(6) SHARES OF CAPITAL STOCK - (CONTINUED)
CLASS A CLASS C
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
SHORT-TERM BOND FUND:
Sold 54,239 $ 1,388,356 9,214 $ 234,513
Reinvested 441 11,188 14,392 364,141
Redeemed (8,222) (213,828) (165,119) (4,191,407)
---------- ------------ ----------- -------------
Net Increase (decrease) 46,458 $ 1,185,716 (141,513) $ (3,592,753)
========== ============ =========== =============
BOND FUND:
Sold 276,207 $ 7,116,447 16,777 $ 439,232
Reinvested 35,522 917,705 177,743
6,855
Redeemed (124,688) (3,193,300) (28,561) (739,632)
---------- ------------ ----------- -------------
Net Increase (decrease) 187,041 $ 4,840,852 (4,929) $ (122,657)
========== ============ =========== =============
LARGE CAP EQUITY FUND:
Sold 432,026 $10,836,952 99,293 $ 2,414,321
Reinvested 10,928 273,310 138,523
5,513
Redeemed (119,579) (3,015,651) (351,006) (8,411,977)
---------- ------------ ----------- -------------
Net Increase 323,375 $ 8,094,611 (246,200) $ (5,859,133)
========== ============ =========== =============
SMALL CAP EQUITY FUND:
Sold 203,007 $ 6,506,087 84,571 $ 2,596,573
Reinvested -- -- 138 4,403
Redeemed (66,055) (2,127,569) (118,710) (3,589,188)
---------- ------------ ----------- -------------
Net Increase 136,952 $ 4,378,518 (34,001) $ (988,212)
========== ============ =========== =============
INTERNATIONAL FUND:
Sold 104,536 $ 1,936,318 32,702 $ 624,199
Reinvested 1,984 37,109 873 16,391
Redeemed (17,719) (337,432) (139,541) (2,680,031)
---------- ------------ ----------- -------------
Net Increase (decrease) 88,801 $ 1,635,995 (105,966) $ (2,039,441)
========== ============ =========== =============
All Funds - The authorized capital stock of the funds is unlimited in
shares, with a par value of $1.00 per share. Transactions in shares of
capital stock, for the year from October 1, 2002 to September 30, 2003
were as follows:
CLASS A CLASS C
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
SHORT-TERM BOND FUND:
Sold 58,780 $ 1,500,998 18,735,978 $ 480,899,879
Reinvested 523 13,394 38,023 972,070
Redeemed (45,655) (1,165,507) (18,817,815) (482,913,680)
-------- ------------ ------------ --------------
Net Increase (decrease) 13,649 $ 348,885 (43,814) $ (1,041,731)
======== ============ ============ ==============
================================================================================
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MARCH 31, 2004 (UNAUDITED)
================================================================================
(6) SHARES OF CAPITAL STOCK - (CONTINUED)
CLASS A CLASS C
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
BOND FUND:
Sold 957,471 $ 24,788,162 5,194,084 $ 135,291,364
Reinvested 73,366 1,891,367 16,843 436,435
Redeemed (543,316) (14,037,125) (7,320,645) (189,677,376)
---------- ------------- -------------- --------------
Net Increase (decrease) 487,521 $ 12,642,404 (2,109,718) $ (53,949,577)
========== ============= ============== ==============
LARGE CAP EQUITY FUND:
Sold 919,898 $ 19,652,394 242,399 $ 4,927,528
Reinvested 22,184 472,363 15,889 340,029
Redeemed (145,237) (3,115,635) (5,375,371) (113,303,687)
---------- ------------- -------------- --------------
Net Increase (decrease) 796,845 $ 17,009,122 (5,117,083) $(108,036,130)
========== ============= ============= ==============
SMALL CAP EQUITY FUND:
Sold 248,655 $ 6,173,194 30,963 $ 835,036
Reinvested 17,977 425,444 57,548 1,371,184
Redeemed (56,008) (1,389,799) (2,583,735) (61,310,567)
---------- ------------- -------------- --------------
Net Increase (decrease) 210,624 $ 5,208,839 (2,495,224) $ (59,104,347)
========== ============= ============== ==============
INTERNATIONAL FUND:
Sold 1,151,348 $ 17,952,278 39,961,640 $ 626,002,219
Reinvested 7,126 113,933 6,132 95,185
Redeemed (978,346) (15,293,361) (42,978,264) (674,160,815)
---------- ------------- -------------- --------------
Net Increase (decrease) 180,128 $ 2,772,850 (3,010,492) $ (48,063,411)
========== ============= ============== ==============
(7) INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term
securities) by the Funds for the period ended March 31, 2004 were as
follows:
- --------------------------------------------------------------------------------
PURCHASES SALES
- --------------------------------------------------------------------------------
Short-Term Bond Fund $ 16,199,499 $ 18,649,053
- ----------------------------------------------------------------------------
Bond Fund 6,703,186 1,840,467
- ----------------------------------------------------------------------------
Large Cap Equity Fund 19,130,384 16,855,943
- ----------------------------------------------------------------------------
Small Cap Equity Fund 12,173,140 9,146,927
- ----------------------------------------------------------------------------
International Fund 2,859,052 3,441,238
- ----------------------------------------------------------------------------
================================================================================
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MARCH 31, 2004 (UNAUDITED)
================================================================================
(8) SECURITIES LENDING
As of March 31, 2004, each Fund had loaned securities in return for cash
collateral, which was invested in various short-term, fixed income
securities such as repurchase agreements. The risks to the Fund from
securities lending are that the borrower may not provide additional
collateral when required or return the securities when due or when called
by the Fund. The value of the securities on loan and the value of the
related collateral were as follows:
- --------------------------------------------------------------------------
SECURITIES COLLATERAL
- --------------------------------------------------------------------------
Short-Term Bond Fund $ 9,777,401 $ 10,049,875
- --------------------------------------------------------------------------
Bond Fund 16,127,075 16,628,865
- --------------------------------------------------------------------------
Large Cap Equity Fund 609,354 651,202
- --------------------------------------------------------------------------
Small Cap Equity Fund 1,769,091 1,843,847
- --------------------------------------------------------------------------
International Fund 891,399 904,700
- --------------------------------------------------------------------------
(9) TAX MATTERS
As of March 31, 2004, the components of distributable earnings on a tax
basis for each Fund were as follows:
- ---------------------------------------------------------------------------------------------------
UNDISTRIBUTED UNDISTRIBUTED UNREALIZED
ORDINARY INCOME LONG-TERM GAIN APPRECIATION/
(DEPRECIATION)
- ---------------------------------------------------------------------------------------------------
Short-Term Bond Fund $ 26,478 $ 114,161 $ 233,720
- ---------------------------------------------------------------------------------------------------
Bond Fund 88,196 -- 4,209,904
- ---------------------------------------------------------------------------------------------------
Large Cap Equity Fund 8,257 -- (4,838,457)
- ---------------------------------------------------------------------------------------------------
Small Cap Equity Fund 5,514 574,334 4,864,996
- ---------------------------------------------------------------------------------------------------
International Fund 14,782 -- 3,224,848
- ---------------------------------------------------------------------------------------------------
Net investment income and realized gains and losses for federal income tax
purposes differ from that reported in the financial statements because of
permanent and temporary book and tax differences. The difference between
book basis and tax-basis unrealized appreciation (depreciation) is
attributable primarily to the tax deferral of losses on wash sales.
As of September 30, 2003 the Funds had capital loss carryforwards and
deferrals available for federal income tax purposes as follows:
- ------------------------------------------------------------------------------------------------------------------------
CAPITAL LOSS CARRYFORWARDS EXPIRING DEFERRED FOR
SEPTEMBER 30, TAX PURPOSES
- ------------------------------------------------------------------------------------------------------------------------
2008 2009 2010 2011 TOTAL
- ------------------------------------------------------------------------------------------------------------------------
Short-Term Bond
Fund $ -- $ -- $ -- $ -- $ -- $ (9,444)
- ------------------------------------------------------------------------------------------------------------------------
Bond Fund (127,397) (448,959) -- (182,388) (758,744) (170,499)
- ------------------------------------------------------------------------------------------------------------------------
================================================================================
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MARCH 31, 2004 (UNAUDITED)
================================================================================
(9) TAX MATTERS - (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
CAPITAL LOSS CARRYFORWARDS EXPIRING DEFERRED FOR
SEPTEMBER 30, TAX PURPOSES
- ------------------------------------------------------------------------------------------------------------------------
2008 2009 2010 2011 Total
- ------------------------------------------------------------------------------------------------------------------------
Large Cap Equity
Fund $ -- $ -- $(1,366,325) $ (6,803,986) $ (8,170,311) $ (151,101)
- ------------------------------------------------------------------------------------------------------------------------
Small Cap Equity Fund -- -- -- (846,350) (846,350) (67,551)
- -----------------------------------------------------------------------------------------------------------------------
International Fund -- (1,659,946) (4,744,263) (8,667,933) (15,072,142) (378,340)
- ------------------------------------------------------------------------------------------------------------------------
The losses deferred for tax purposes consist of losses on wash sales and
post-October capital losses.
(10) DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid for the six month period ended
March 31, 2004 and the fiscal year ended September 30, 2003 were as
follows:
Distributions paid during the six month period ended March 31, 2004:
- -----------------------------------------------------------------------------
Long Term Capital
Ordinary Income Gain
- -----------------------------------------------------------------------------
Short-Term Bond Fund $ 235,878 $ 139,634
- -----------------------------------------------------------------------------
Bond Fund 1,209,066 --
- -----------------------------------------------------------------------------
Large Cap Equity Fund 428,379 --
- -----------------------------------------------------------------------------
Small Cap Equity Fund 4,563 --
- -----------------------------------------------------------------------------
International Fund 53,578 --
- -----------------------------------------------------------------------------
Distributions paid during the year ended September 30, 2003:
- -----------------------------------------------------------------------------------------------------
Long Term Capital Tax Return
Ordinary Income Gain of Capital
- -----------------------------------------------------------------------------------------------------
Short-Term Bond Fund $ 834,033 $ 262,503 $ 17,005
- -----------------------------------------------------------------------------------------------------
Bond Fund 2,681,195 -- --
- -----------------------------------------------------------------------------------------------------
Large Cap Equity Fund 881,910 -- --
- -----------------------------------------------------------------------------------------------------
Small Cap Equity Fund 59,708 3,205,174 --
- -----------------------------------------------------------------------------------------------------
International Fund 208,572 -- 13,670
- -----------------------------------------------------------------------------------------------------
================================================================================
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MARCH 31, 2004 (UNAUDITED)
================================================================================
(11) MISCELLANEOUS
On July 31, 2003, at the annual meeting of the shareholders, the Fund
considered two proposals. They are as follows:
1. To elect Trustees for the Funds.
2. To ratify the selection of Briggs, Bunting & Dougherty, LLP as the
Funds' independent auditors.
The voting requirements for each proposal and the number of shares present
in person or by proxy were as follows:
- ----------------------------------------------------------------------------
Shares Shares Needed
Outstanding Shares Present for Quorum
- ----------------------------------------------------------------------------
Short-Term Bond Fund 1,883,272 591,431 941,636
- ----------------------------------------------------------------------------
Bond Fund 2,529,990 498,156 1,264,995
- ----------------------------------------------------------------------------
Large Cap Equity Fund 3,274,533 771,442 1,637,266
- ----------------------------------------------------------------------------
Small Cap Equity Fund 839,904 164,651 419,952
- ----------------------------------------------------------------------------
International Fund 1,079,001 160,125 539,501
- ----------------------------------------------------------------------------
No proposals were approved on July 31, 2003 due to an insufficient amount
of shareholder votes. The meeting has been adjourned for the interim in
order to obtain more shareholder votes.
ITEM 2. CODE OF ETHICS.
Not applicable
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
ITEM 6. SCHEDULE OF INVESTMENT
none
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable. Fund is an open-end management investment company.
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 office and principal financial
officer has concluded that the registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company Act
of 1940, as amended (the "1940 Act") are effective based on their
evaluation of these controls and procedures as of a date within 90 days of
the filing date of this document.
(b) There were so significant changes in the registrant's internal
controls or in other factors that could affect these controls subsequent
to the date of their evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
ITEM 11. EXHIBITS
(a)Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
2002, Filed herewith.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of
2002. Furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) The Capstone Social Ethics & Religious Values Fund
By: /s/ Edward L. Jaroski
-------------------
Edward L. Jaroski
President
Date May 21, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Edward L. Jaroski
-------------------
Edward L. Jaroski
President
Date May 21, 2004
By: /s/ Carla Homer
-------------------
Carla Homer
Treasurer
Date May 21, 2004