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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4418
California Investment Trust II
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
44 Montgomery Street, Suite 2100, San Francisco, CA 94104
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (415) 398-2727
Date of fiscal year end: August 31, 2005
Date of reporting period: August 31, 2005
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. Annual Report to Shareholders.
- -------------------------------------
California Tax-Free Income Fund
California Insured Intermediate Fund
California Tax-Free Money Market Fund
U.S. Government Securities Fund
Short-Term U.S. Government Bond Fund
The United States Treasury Trust
S&P 500 Index Fund
S&P MidCap Index Fund
S&P SmallCap Index Fund
Equity Income Fund
European Growth & Income Fund
Nasdaq-100 Index Fund
- -------------------------------------
[LOGO]
CALIFORNIA
INVESTMENT TRUST
----------------
FUND GROUP
ANNUAL REPORT
August 31, 2005
(800) 225-8778
www.caltrust.com
NO-LOAD FUNDS
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of beneficial interest of
California Investment Trust Fund Group which contains information about the
management fee and other costs. Investments in shares of the funds of California
Investment Trust Fund Group are neither insured nor guaranteed by the U.S.
Government, and there is no assurance that any Fund which is a Money Market Fund
will be able to maintain a stable net asset value of $1.00 per share.
Historical Performance and Manager's Discussion
On the following pages are line graphs comparing each of the Funds' performance
to a comparable broad based securities market index for the 10 years ended
August 31, 2005, or the inception of the Fund if less than 10 years. Each graph
assumes a hypothetical $10,000 initial investment in the respective funds.
The objective of the graphs is to furnish comparisons of the performance of the
Funds with a benchmark and to provide perspective on market conditions, risks
and investment strategies and techniques that materially affected the
performance of each Fund. With each graph is a table presenting each of the
respective Fund's average annual total return for the one-year, five-year,
ten-year, and/or inception period through August 31, 2005.
Bond Funds
Over the course of the fiscal year, the treasury yield curve continued to
flatten, with short term interest rates increasing and long term rates
decreasing. The pivot point, the point on the yield curve where yields finished
at the same level from the prior year, was roughly nine years. Throughout the
year, the Federal Reserve Bank ("The Fed") increased the Federal Funds Rates by
25 basis points (a basis point being a one-hundredth of one percent) at each of
its eight meetings over the fiscal year. This brought the Federal Funds Rate
from 1.50% to 3.50%. Even with this rise of 2.00% in a year, the Fed maintains
that this rate remains accommodative to the economy, and will continue stimulate
economic growth. The Fed has signaled that it will continue to raise the Federal
Funds Rate at "a pace that is likely to be measured" until it reaches a level
that neither stimulates nor restrains economic growth. The Fed has given no
indication as to the specifics of what that level might be. The Fed has also
commented that inflation remains "well contained".
During this time longer term interest rates remained low. Federal Reserve
Chairman Alan Greenspan noted that this situation appeared to be a "conundrum",
and that "rising interest rates have been advertised for so long and in so many
places that anyone who has not appropriately hedged his position by now,
obviously, is desirous of losing money." With this as a backdrop, the durations
of the bond portfolios were held at or below their representative benchmarks.
Duration is a time-weighted measurement of a bond's cash flows. A duration
shortening strategy ahead of an anticipated rising interest rate environment is
designed to protect principal. When rates go up, bond prices go down. Prices for
bonds with shorter durations tend to experience less price volatility than those
with longer durations. A discussion of specific fund duration targets appears
below.
The California Tax-Free Income Fund's duration was kept in a narrow range
somewhat shorter than its benchmark. As of August 31, 2004 the Fund had an
average coupon of 5.58%, and average maturity of 9.98 years, duration of 5.43
years and an average credit rating of AA+. The fund's duration has been kept
shorter than it's benchmark in anticipation of rising interest rates, thereby
offering more protection against such a rise.
As of August 31, 2005 the California Intermediate Insured Fund's had an average
coupon of 5.36%, and average maturity of 5.32 years, duration of 3.94 years and
an average credit rating of AAA. The duration of the intermediate fund has been
kept very close to that of its benchmark. As such, its performance has closely
tracked the performance of its benchmark, the Lehman Brothers 5 Year Municipal
Index. Unfortunately, this area of the yield curve has experienced less
performance than at the longer end of the yield curve.
As of August 31, 2005 the U.S. Government Securities Fund had an average coupon
of 4.60%, average maturity of 7.13 years, and a duration of 5.05 years. The
duration of the fund has been slightly shorter than its benchmarks, and as a
result has underperformed those benchmarks in the curve-flattening environment.
The Short-Term U.S. Government Bond Fund's average coupon of 3.48%, and average
maturity of 1.80 years, duration of 1.64 years. The fund's duration has been
kept shorter than it's benchmark, the Lehman Brothers 1-3 Year Treasury Index.
At the front end of the yield curve, where the Federal Reserve has been raising
rates, this has been beneficial to performance relative to the benchmark.
- --------------------------------------------------------------------------------
California Insured Intermediate Fund
versus the Lehman Bros. 5 Year Municipal Bond Index
[Line Chart]
California Lehman
Insured Municipal
Intermediate 5 Year
Fund Index
---------- ------------
08/31/95 $10,000.00 $10,000.00
09/30/95 $10,063.12 $10,025.00
10/31/95 $10,187.51 $10,086.15
11/30/95 $10,310.30 $10,177.94
12/31/95 $10,326.71 $10,230.86
01/31/96 $10,434.77 $10,333.17
02/29/96 $10,402.45 $10,304.24
03/31/96 $10,253.15 $10,232.11
04/30/96 $10,233.80 $10,231.08
05/31/96 $10,203.50 $10,226.99
06/30/96 $10,277.56 $10,287.33
07/31/96 $10,368.37 $10,362.43
08/31/96 $10,375.27 $10,371.76
09/30/96 $10,461.03 $10,456.80
10/31/96 $10,581.72 $10,547.78
11/30/96 $10,777.47 $10,684.90
12/31/96 $10,728.66 $10,664.60
01/31/97 $10,778.40 $10,700.86
02/28/97 $10,833.78 $10,778.97
03/31/97 $10,685.91 $10,661.48
04/30/97 $10,728.49 $10,707.33
05/31/97 $10,858.10 $10,839.03
06/30/97 $10,956.40 $10,921.40
07/31/97 $11,225.12 $11,113.62
08/31/97 $11,137.09 $11,056.94
09/30/97 $11,239.85 $11,155.35
10/31/97 $11,279.57 $11,213.36
11/30/97 $11,314.41 $11,248.12
12/31/97 $11,414.73 $11,344.85
01/31/98 $11,538.45 $11,448.09
02/28/98 $11,542.32 $11,466.41
03/31/98 $11,519.18 $11,476.73
04/30/98 $11,439.81 $11,428.52
05/31/98 $11,605.95 $11,565.67
06/30/98 $11,636.83 $11,604.99
07/31/98 $11,687.24 $11,645.61
08/31/98 $11,876.35 $11,788.85
09/30/98 $12,048.21 $11,910.27
10/31/98 $12,053.26 $11,944.81
11/30/98 $12,088.77 $11,966.31
12/31/98 $12,096.60 $12,008.19
01/31/99 $12,246.57 $12,135.48
02/28/99 $12,182.78 $12,123.35
03/31/99 $12,215.43 $12,134.26
04/30/99 $12,209.71 $12,170.66
05/31/99 $12,156.52 $12,120.76
06/30/99 $11,985.17 $11,983.80
07/31/99 $12,092.90 $12,058.10
08/31/99 $12,055.78 $12,053.27
09/30/99 $12,120.00 $12,096.66
10/31/99 $12,042.23 $12,066.42
11/30/99 $12,111.83 $12,137.61
12/31/99 $12,015.22 $12,097.56
01/31/00 $12,078.76 $12,092.72
02/29/00 $12,132.79 $12,132.63
03/31/00 $12,270.05 $12,243.03
04/30/00 $12,194.81 $12,214.87
05/31/00 $12,229.24 $12,211.21
06/30/00 $12,472.37 $12,434.68
07/31/00 $12,619.99 $12,565.24
08/31/00 $12,809.02 $12,700.94
09/30/00 $12,729.23 $12,679.35
10/31/00 $12,811.04 $12,768.11
11/30/00 $12,853.87 $12,823.01
12/31/00 $13,064.27 $13,029.46
01/31/01 $13,306.40 $13,253.57
02/28/01 $13,298.32 $13,289.35
03/31/01 $13,341.58 $13,398.33
04/30/01 $13,118.05 $13,323.29
05/31/01 $13,300.68 $13,460.52
06/30/01 $13,403.69 $13,529.17
07/31/01 $13,560.57 $13,675.29
08/31/01 $13,789.65 $13,859.91
09/30/01 $13,751.10 $13,901.48
10/31/01 $13,919.85 $14,016.87
11/30/01 $13,781.57 $13,906.13
12/31/01 $13,644.05 $13,837.99
01/31/02 $13,893.84 $14,060.79
02/28/02 $14,060.81 $14,219.67
03/31/02 $13,650.87 $13,916.79
04/30/02 $13,979.52 $14,238.27
05/31/02 $14,137.48 $14,333.67
06/30/02 $14,218.61 $14,489.90
07/31/02 $14,418.33 $14,646.40
08/31/02 $14,640.43 $14,787.00
09/30/02 $14,990.11 $14,992.54
10/31/02 $14,536.71 $14,839.62
11/30/02 $14,529.59 $14,824.78
12/31/02 $14,864.12 $15,119.79
01/31/03 $14,711.54 $15,145.49
02/28/03 $14,864.54 $15,310.58
03/31/03 $14,869.93 $15,289.14
04/30/03 $14,962.17 $15,361.00
05/31/03 $15,296.62 $15,606.78
06/30/03 $15,195.38 $15,566.20
07/31/03 $14,662.05 $15,226.86
08/31/03 $14,791.91 $15,333.45
09/30/03 $15,227.86 $15,722.92
10/31/03 $15,156.58 $15,619.15
11/30/03 $15,246.63 $15,683.18
12/31/03 $15,330.71 $15,744.35
01/31/04 $15,423.12 $15,818.35
02/29/04 $15,624.26 $16,011.33
03/31/04 $15,496.00 $15,944.08
04/30/04 $15,112.99 $15,625.20
05/31/04 $15,077.39 $15,545.51
06/30/04 $15,149.59 $15,603.03
07/31/04 $15,314.80 $15,746.58
08/31/04 $15,539.68 $16,022.14
09/30/04 $15,565.09 $16,042.97
10/31/04 $15,631.75 $16,131.21
11/30/04 $15,522.17 $16,024.74
12/31/04 $15,664.23 $16,170.57
01/31/05 $15,716.67 $16,167.33
02/28/05 $15,614.58 $16,086.50
03/31/05 $15,514.68 $15,983.54
04/30/05 $15,680.22 $16,168.95
05/31/05 $15,719.44 $16,215.84
06/30/05 $15,792.49 $16,290.44
07/31/05 $15,683.84 $16,202.47
08/31/05 $15,785.00 $16,304.54
- --------------------------------------------------------------------------------
Average Annual Total Returns*
for periods ended 8/31/2005 1 year 5 year 10 year
- --------------------------- ------ ------ -------
California Insured Intermediate Fund 1.58% 4.27% 4.67%
Lehman Bros. Municipal Bond Index 1.76% 5.12% 5.01%
- --------------------------------------------------------------------------------
California Tax-Free Income Fund
versus the Lehman Bros. Municipal Bond Index
[Line Chart]
California Lehman Bros.
Tax-Free Municipal
Income Bond
Fund Index
---------- ------------
08/31/95 $10,000.00 $10,000.00
09/30/95 $10,096.37 $10,063.00
10/31/95 $10,308.87 $10,208.91
11/30/95 $10,564.82 $10,378.38
12/31/95 $10,713.02 $10,478.01
01/31/96 $10,783.33 $10,557.65
02/29/96 $10,649.44 $10,485.85
03/31/96 $10,430.30 $10,351.64
04/30/96 $10,366.27 $10,322.65
05/31/96 $10,342.65 $10,318.52
06/30/96 $10,475.97 $10,430.99
07/31/96 $10,600.26 $10,525.92
08/31/96 $10,586.37 $10,523.81
09/30/96 $10,746.42 $10,671.14
10/31/96 $10,906.65 $10,791.73
11/30/96 $11,163.44 $10,989.22
12/31/96 $11,045.25 $10,943.06
01/31/97 $11,037.76 $10,963.85
02/28/97 $11,148.22 $11,064.72
03/31/97 $10,942.33 $10,917.56
04/30/97 $11,049.89 $11,009.27
05/31/97 $11,235.61 $11,174.41
06/30/97 $11,351.16 $11,293.97
07/31/97 $11,783.21 $11,606.82
08/31/97 $11,589.68 $11,497.71
09/30/97 $11,746.11 $11,634.54
10/31/97 $11,791.39 $11,709.00
11/30/97 $11,846.11 $11,778.08
12/31/97 $12,071.77 $11,950.04
01/31/98 $12,246.33 $12,073.12
02/28/98 $12,222.10 $12,076.75
03/31/98 $12,167.18 $12,087.62
04/30/98 $12,062.32 $12,033.22
05/31/98 $12,303.73 $12,223.35
06/30/98 $12,334.18 $12,271.02
07/31/98 $12,332.82 $12,301.69
08/31/98 $12,604.15 $12,492.37
09/30/98 $12,843.04 $12,648.53
10/31/98 $12,800.04 $12,648.53
11/30/98 $12,842.41 $12,692.80
12/31/98 $12,834.36 $12,724.53
01/31/99 $13,035.40 $12,875.95
02/28/99 $12,904.14 $12,819.30
03/31/99 $12,925.37 $12,837.24
04/30/99 $12,910.75 $12,869.34
05/31/99 $12,765.11 $12,794.69
06/30/99 $12,517.64 $12,610.45
07/31/99 $12,574.41 $12,655.85
08/31/99 $12,471.72 $12,554.60
09/30/99 $12,496.14 $12,559.62
10/31/99 $12,346.37 $12,423.98
11/30/99 $12,489.16 $12,555.67
12/31/99 $12,375.69 $12,461.51
01/31/00 $12,388.44 $12,407.92
02/29/00 $12,518.18 $12,551.85
03/31/00 $12,783.74 $12,826.74
04/30/00 $12,662.85 $12,751.06
05/31/00 $12,661.91 $12,684.75
06/30/00 $12,991.78 $13,020.90
07/31/00 $13,163.27 $13,201.89
08/31/00 $13,478.26 $13,405.20
09/30/00 $13,378.35 $13,335.49
10/31/00 $13,460.88 $13,480.85
11/30/00 $13,534.17 $13,583.30
12/31/00 $13,912.84 $13,918.81
01/31/01 $14,034.59 $14,056.61
02/28/01 $14,014.90 $14,101.59
03/31/01 $14,065.41 $14,228.50
04/30/01 $13,713.13 $14,074.84
05/31/01 $13,844.27 $14,226.84
06/30/01 $14,002.70 $14,322.16
07/31/01 $14,197.18 $14,534.13
08/31/01 $14,554.46 $14,773.95
09/30/01 $14,496.98 $14,723.71
10/31/01 $14,704.73 $14,898.93
11/30/01 $14,471.41 $14,773.78
12/31/01 $14,271.13 $14,633.42
01/31/02 $14,539.39 $14,886.58
02/28/02 $14,755.14 $15,066.71
03/31/02 $14,312.02 $14,771.40
04/30/02 $14,651.75 $15,059.45
05/31/02 $14,793.96 $15,151.31
06/30/02 $14,889.49 $15,311.91
07/31/02 $15,116.05 $15,509.44
08/31/02 $15,361.92 $15,695.55
09/30/02 $15,828.60 $16,039.28
10/31/02 $15,312.66 $15,773.03
11/30/02 $15,211.97 $15,706.78
12/31/02 $15,621.34 $16,038.20
01/31/03 $15,408.69 $15,998.10
02/28/03 $15,656.68 $16,222.07
03/31/03 $15,654.55 $16,231.81
04/30/03 $15,777.32 $16,338.94
05/31/03 $16,236.06 $16,721.27
06/30/03 $16,066.90 $16,649.37
07/31/03 $15,309.49 $16,066.64
08/31/03 $15,455.76 $16,187.14
09/30/03 $15,972.03 $16,663.04
10/31/03 $15,864.48 $16,579.72
11/30/03 $16,026.30 $16,752.15
12/31/03 $16,159.82 $16,891.20
01/31/04 $16,261.85 $16,987.48
02/29/04 $16,521.27 $17,243.99
03/31/04 $16,350.70 $17,183.63
04/30/04 $15,860.20 $16,776.38
05/31/04 $15,834.58 $16,715.99
06/30/04 $15,884.12 $16,776.16
07/31/04 $16,072.38 $16,995.93
08/31/04 $16,354.54 $17,335.85
09/30/04 $16,404.08 $17,427.73
10/31/04 $16,518.96 $17,577.61
11/30/04 $16,364.86 $17,433.47
12/31/04 $16,538.27 $17,646.16
01/31/05 $16,616.81 $17,812.03
02/28/05 $16,501.62 $17,753.25
03/31/05 $16,362.88 $17,641.41
04/30/05 $16,617.47 $17,920.14
05/31/05 $16,723.91 $18,047.38
06/30/05 $16,824.27 $18,159.27
07/31/05 $16,659.39 $18,077.55
08/31/05 $16,838.83 $18,260.14
- --------------------------------------------------------------------------------
Average Annual Total Returns*
for periods ended 8/31/2005 1 year 5 year 10 year
- --------------------------- ------ ------ -------
California Tax-Free Income 2.96% 4.55% 5.35%
Lehman Bros. Municipal Bond Index 5.33% 6.38% 6.21%
* Past performance does not predict future performance. The returns shown do
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares
1
REGULAR SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year 5 year 10 year
- --------------------------- ------ ------ -------
U.S. Government Securities Fund 3.60% 5.35% 5.79%
Lehman Bros. Composite Treasury Index 4.11% 6.48% 6.54%
Lehman Bros. GNMA Index 4.04% 6.25% 6.78%
- --------------------------------------------------------------------------------
U.S. Government Securities Fund
versus the Lehman Bros. Treasury and GNMA Indicies
[Line Chart]
U.S.
Government Lehman Bros.
Securities Treasury Lehman Bros.
Fund Index GNMA Index
---------- -------- ------------
08/31/95 $10,000.00 $10,000.00 $10,000.00
09/30/95 $10,152.81 $10,096.00 $10,098.00
10/31/95 $10,395.92 $10,252.49 $10,180.80
11/30/95 $10,627.39 $10,411.40 $10,297.88
12/31/95 $10,886.25 $10,560.28 $10,429.70
01/31/96 $10,875.39 $10,626.81 $10,502.70
02/29/96 $10,426.23 $10,408.96 $10,423.93
03/31/96 $10,245.34 $10,318.41 $10,397.87
04/30/96 $10,088.11 $10,252.37 $10,370.84
05/31/96 $10,023.74 $10,235.97 $10,335.58
06/30/96 $10,221.42 $10,365.96 $10,470.97
07/31/96 $10,231.38 $10,390.84 $10,510.76
08/31/96 $10,126.28 $10,369.02 $10,514.97
09/30/96 $10,389.09 $10,539.07 $10,690.57
10/31/96 $10,749.02 $10,770.93 $10,906.52
11/30/96 $11,093.80 $10,957.27 $11,064.66
12/31/96 $10,834.30 $10,844.41 $11,006.02
01/31/97 $10,815.62 $10,855.25 $11,090.77
02/28/97 $10,826.31 $10,868.28 $11,130.69
03/31/97 $10,677.41 $10,750.90 $11,240.89
04/30/97 $10,840.48 $10,905.71 $11,425.24
05/31/97 $10,915.32 $10,999.50 $11,542.92
06/30/97 $11,041.42 $11,122.70 $11,679.12
07/31/97 $11,323.64 $11,441.92 $11,890.52
08/31/97 $11,139.40 $11,326.36 $11,865.55
09/30/97 $11,360.05 $11,498.52 $12,023.36
10/31/97 $11,599.21 $11,698.59 $12,148.40
11/30/97 $11,663.31 $11,759.42 $12,186.06
12/31/97 $11,844.93 $11,882.90 $12,295.73
01/31/98 $12,063.09 $12,064.71 $12,415.00
02/28/98 $11,991.90 $12,028.51 $12,442.32
03/31/98 $12,016.25 $12,060.99 $12,494.57
04/30/98 $12,059.53 $12,115.26 $12,567.04
05/31/98 $12,246.39 $12,241.26 $12,652.50
06/30/98 $12,463.64 $12,382.04 $12,705.64
07/31/98 $12,439.13 $12,401.85 $12,776.79
08/31/98 $12,912.20 $12,739.18 $12,877.73
09/30/98 $13,357.41 $13,094.60 $13,029.68
10/31/98 $13,203.18 $13,052.70 $13,017.96
11/30/98 $13,263.29 $13,050.09 $13,092.16
12/31/98 $13,275.96 $13,076.19 $13,145.84
01/31/99 $13,340.27 $13,152.03 $13,239.17
02/28/99 $12,881.37 $12,816.65 $13,196.81
03/31/99 $12,906.19 $12,865.36 $13,277.31
04/30/99 $12,938.30 $12,896.23 $13,341.04
05/31/99 $12,758.23 $12,776.30 $13,274.33
06/30/99 $12,685.62 $12,749.47 $13,221.24
07/31/99 $12,631.05 $12,739.27 $13,133.98
08/31/99 $12,604.13 $12,741.82 $13,130.04
09/30/99 $12,748.23 $12,839.93 $13,341.43
10/31/99 $12,739.94 $12,854.05 $13,420.14
11/30/99 $12,710.23 $12,829.63 $13,425.51
12/31/99 $12,620.10 $12,744.95 $13,398.66
01/31/00 $12,549.56 $12,778.09 $13,278.07
02/29/00 $12,664.67 $12,969.76 $13,448.03
03/31/00 $12,957.41 $13,226.56 $13,660.51
04/30/00 $12,913.44 $13,184.24 $13,648.22
05/31/00 $12,955.69 $13,204.01 $13,697.35
06/30/00 $13,187.08 $13,427.16 $13,950.75
07/31/00 $13,299.23 $13,565.46 $14,024.69
08/31/00 $13,530.40 $13,764.87 $14,236.46
09/30/00 $13,545.34 $13,775.89 $14,368.86
10/31/00 $13,665.90 $13,909.51 $14,475.19
11/30/00 $13,968.43 $14,194.66 $14,679.29
12/31/00 $14,255.76 $14,465.78 $14,886.27
01/31/01 $14,364.86 $14,582.95 $15,130.41
02/28/01 $14,519.48 $14,759.40 $15,196.98
03/31/01 $14,541.16 $14,806.63 $15,288.16
04/30/01 $14,329.40 $14,623.03 $15,312.62
05/31/01 $14,313.94 $14,668.36 $15,441.25
06/30/01 $14,401.19 $14,747.57 $15,487.57
07/31/01 $14,726.99 $15,116.26 $15,752.41
08/31/01 $14,874.95 $15,315.79 $15,867.40
09/30/01 $15,032.82 $15,559.32 $16,081.61
10/31/01 $15,518.22 $15,990.31 $16,295.50
11/30/01 $15,095.17 $15,593.75 $16,158.62
12/31/01 $14,915.48 $15,442.49 $16,110.14
01/31/02 $15,035.19 $15,545.95 $16,272.85
02/28/02 $15,176.79 $15,637.68 $16,438.84
03/31/02 $14,953.52 $15,260.81 $16,282.67
04/30/02 $15,219.13 $15,640.80 $16,569.24
05/31/02 $15,307.66 $15,728.39 $16,676.94
06/30/02 $15,433.64 $15,950.16 $16,810.36
07/31/02 $15,636.90 $16,328.18 $17,005.36
08/31/02 $15,863.64 $16,680.87 $17,124.39
09/30/02 $16,161.96 $17,131.25 $17,266.53
10/31/02 $15,993.08 $16,941.09 $17,320.05
11/30/02 $15,872.19 $16,773.38 $17,335.64
12/31/02 $16,253.76 $17,209.49 $17,507.26
01/31/03 $16,210.18 $17,157.86 $17,551.03
02/28/03 $16,444.23 $17,452.97 $17,638.79
03/31/03 $16,358.01 $17,379.67 $17,651.13
04/30/03 $16,415.20 $17,461.35 $17,691.73
05/31/03 $16,816.74 $17,964.24 $17,691.73
06/30/03 $16,756.20 $17,854.66 $17,744.81
07/31/03 $16,206.66 $17,070.84 $17,452.02
08/31/03 $16,262.91 $17,171.56 $17,567.20
09/30/03 $16,584.33 $17,690.14 $17,820.17
10/31/03 $16,414.60 $17,419.48 $17,773.84
11/30/03 $16,423.40 $17,442.12 $17,836.04
12/31/03 $16,536.28 $17,597.36 $18,001.92
01/31/04 $16,631.13 $17,746.94 $18,091.93
02/29/04 $16,735.68 $17,967.00 $18,211.34
03/31/04 $16,832.97 $18,135.89 $18,286.00
04/30/04 $16,504.51 $17,551.91 $17,998.91
05/31/04 $16,455.69 $17,492.24 $17,962.91
06/30/04 $16,561.01 $17,562.21 $18,124.58
07/31/04 $16,706.14 $17,729.05 $18,271.39
08/31/04 $16,950.70 $18,096.04 $18,525.36
09/30/04 $16,984.88 $18,143.09 $18,564.27
10/31/04 $17,064.14 $18,286.42 $18,710.92
11/30/04 $17,016.05 $18,041.38 $18,667.89
12/31/04 $17,113.99 $18,219.99 $18,789.23
01/31/05 $17,175.52 $18,353.00 $18,898.21
02/28/05 $17,124.47 $18,202.50 $18,839.62
03/31/05 $17,061.48 $18,142.43 $18,803.83
04/30/05 $17,259.93 $18,461.74 $18,995.63
05/31/05 $17,409.44 $18,686.97 $19,132.40
06/30/05 $17,468.30 $18,800.96 $19,187.88
07/31/05 $17,353.06 $18,545.27 $19,114.97
08/31/05 $17,561.39 $18,840.14 $19,273.62
- --------------------------------------------------------------------------------
K SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year Inception
- --------------------------- ------ ---------
U.S. Government Securities Fund 3.07% 3.59%
Lehman Bros. Composite Treasury Index 4.11% 3.42% **
Lehman Bros. GNMA Index 4.04% 4.27% **
** Due to data limitations the benchmark performance information reflects the
period 10/1/03 - 8/31/04. Share class commencement of operations was
10/16/03.
- --------------------------------------------------------------------------------
U.S. Government Securities Fund
versus the Lehman Bros. Treasury and GNMA Indicies
[Line Chart]
U.S.
Government Lehman Bros.
Securities Treasury Lehman Bros.
Fund Index GNMA Index
---------- -------- ------------
10/31/03 $10,000.00 $10,000.00 $10,000.00
11/30/03 $10,002.33 $10,013.00 $10,035.00
12/31/03 $10,068.77 $10,102.12 $10,128.33
01/31/04 $10,121.48 $10,187.98 $10,178.97
02/29/04 $10,189.40 $10,314.31 $10,246.15
03/31/04 $10,235.12 $10,411.27 $10,288.16
04/30/04 $10,038.05 $10,076.03 $10,126.63
05/31/04 $10,002.93 $10,041.77 $10,106.38
06/30/04 $10,057.51 $10,081.93 $10,197.34
07/31/04 $10,147.41 $10,177.71 $10,279.94
08/31/04 $10,290.21 $10,388.39 $10,422.83
09/30/04 $10,303.84 $10,415.40 $10,444.72
10/31/04 $10,357.11 $10,497.68 $10,527.23
11/30/04 $10,312.65 $10,357.01 $10,503.02
12/31/04 $10,367.10 $10,459.55 $10,571.29
01/31/05 $10,408.71 $10,535.90 $10,632.60
02/28/05 $10,364.04 $10,449.51 $10,599.64
03/31/05 $10,331.13 $10,415.03 $10,579.50
04/30/05 $10,444.55 $10,598.33 $10,687.41
05/31/05 $10,530.04 $10,727.63 $10,764.36
06/30/05 $10,560.69 $10,793.07 $10,795.58
07/31/05 $10,486.54 $10,646.28 $10,754.55
08/31/05 $10,606.32 $10,815.56 $10,843.81
- --------------------------------------------------------------------------------
* Past performance does not predict future performance. The returns shown do
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares
REGULAR SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year 5 year Inception
- --------------------------- ------ ------ ---------
Short-Term U.S. Government Bond Fund 0.82% 2.87% 3.30%
Lehman 1-3 Year Treasury Index 1.14% 4.31% 4.63%
- --------------------------------------------------------------------------------
Short-Term U.S. Government Bond Fund
versus the Lehman 1-3 Year Treasury Index
[Line Chart]
Lehman
Short-Term 1-3 Year
U.S. Government Treasury
Bond Fund Index
--------------- --------
01/18/00 $10,000.00 $10,000.00
01/31/00 $10,005.50 $9,996.00
02/29/00 $10,055.58 $10,061.97
03/31/00 $10,118.70 $10,126.37
04/30/00 $10,157.21 $10,148.65
05/31/00 $10,203.74 $10,191.27
06/30/00 $10,293.62 $10,298.28
07/31/00 $10,352.01 $10,364.19
08/31/00 $10,414.70 $10,440.88
09/30/00 $10,478.54 $10,518.15
10/31/00 $10,532.34 $10,573.89
11/30/00 $10,607.69 $10,675.40
12/31/00 $10,711.54 $10,804.58
01/31/01 $10,812.31 $10,941.79
02/28/01 $10,871.37 $11,014.01
03/31/01 $10,937.22 $11,105.43
04/30/01 $10,971.36 $11,134.30
05/31/01 $11,030.53 $11,194.42
06/30/01 $11,060.09 $11,233.61
07/31/01 $11,154.18 $11,362.79
08/31/01 $11,204.55 $11,433.24
09/30/01 $11,368.56 $11,621.89
10/31/01 $11,477.31 $11,733.46
11/30/01 $11,407.80 $11,705.30
12/31/01 $11,392.97 $11,708.81
01/31/02 $11,417.28 $11,732.23
02/28/02 $11,476.69 $11,789.72
03/31/02 $11,399.61 $11,702.47
04/30/02 $11,495.23 $11,840.56
05/31/02 $11,519.68 $11,885.56
06/30/02 $11,570.96 $11,990.15
07/31/02 $11,630.47 $12,140.03
08/31/02 $11,641.78 $12,182.52
09/30/02 $11,686.42 $12,287.29
10/31/02 $11,711.77 $12,315.55
11/30/02 $11,698.56 $12,273.67
12/31/02 $11,733.79 $12,393.96
01/31/03 $11,744.86 $12,391.48
02/28/03 $11,751.80 $12,446.00
03/31/03 $11,767.08 $12,468.40
04/30/03 $11,768.35 $12,490.85
05/31/03 $11,781.23 $12,538.31
06/30/03 $11,792.15 $12,558.37
07/31/03 $11,779.82 $12,485.53
08/31/03 $11,777.49 $12,491.78
09/30/03 $11,846.21 $12,610.45
10/31/03 $11,821.50 $12,561.27
11/30/03 $11,815.42 $12,554.99
12/31/03 $11,851.29 $12,627.81
01/31/04 $11,864.04 $12,654.32
02/29/04 $11,907.50 $12,717.60
03/31/04 $11,924.38 $12,758.29
04/30/04 $11,843.04 $12,629.43
05/31/04 $11,842.33 $12,615.54
06/30/04 $11,831.63 $12,614.28
07/31/04 $11,854.95 $12,659.69
08/31/04 $11,902.56 $12,749.57
09/30/04 $11,891.23 $12,739.37
10/31/04 $11,916.15 $12,778.87
11/30/04 $11,856.93 $12,713.69
12/31/04 $11,876.11 $12,741.66
01/31/05 $11,871.97 $12,736.57
02/28/05 $11,856.27 $12,706.00
03/31/05 $11,854.85 $12,706.00
04/30/05 $11,896.83 $12,779.69
05/31/05 $11,954.04 $12,828.26
06/30/05 $11,968.05 $12,852.63
07/31/05 $11,919.24 $12,814.07
08/31/05 $12,000.22 $12,894.80
- --------------------------------------------------------------------------------
K SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year Inception
- --------------------------- ------ ---------
Short-Term U.S. Government Bond Fund 0.20% 0.33%
Lehman 1-3 Year Treasury Index 1.14% 1.20% **
** Due to data limitations the benchmark performance information reflects the
period 10/1/03 - 8/31/04. Share class commencement of operations was
10/16/03.
- --------------------------------------------------------------------------------
Short-Term U.S. Government Bond Fund
versus the Lehman 1-3 Year Treasury Index
[Line Chart]
Lehman
Short-Term 1-3 Year
U.S. Government Treasury
Bond Fund Index
--------------- --------
10/31/03 $10,000.00 $10,000.00
11/30/03 $9,991.20 $9,995.00
12/31/03 $10,024.30 $10,052.97
01/31/04 $10,030.14 $10,074.08
02/29/04 $10,053.68 $10,124.45
03/31/04 $10,070.00 $10,156.85
04/30/04 $9,996.93 $10,054.27
05/31/04 $9,982.27 $10,043.21
06/30/04 $9,978.50 $10,042.20
07/31/04 $9,993.66 $10,078.35
08/31/04 $10,029.39 $10,149.91
09/30/04 $10,015.68 $10,141.79
10/31/04 $10,022.73 $10,173.23
11/30/04 $9,977.92 $10,121.35
12/31/04 $9,989.38 $10,143.61
01/31/05 $9,981.81 $10,139.56
02/28/05 $9,964.34 $10,115.22
03/31/05 $9,958.54 $10,115.22
04/30/05 $9,989.46 $10,173.89
05/31/05 $10,023.32 $10,212.55
06/30/05 $10,040.18 $10,231.95
07/31/05 $9,997.37 $10,201.26
08/31/05 $10,049.72 $10,265.53
- --------------------------------------------------------------------------------
2
Stock Funds
By definition, the objective for managing the index funds is to match the
performance of the funds to their index benchmarks. Each of our index funds
tracked their respective benchmarks tightly during this last fiscal year. We
measure the index fund performance by using a correlation coefficient. This is a
statistical measure that compares daily performance of a fund against its
benchmark index. A measure of 1.000 indicates that the performance is perfectly
correlated and a measure of -1.000 implies they are negatively correlated.
According to Bloomberg, LLC, The Nasdaq-100 Index Fund and S&P MidCap Index Fund
each had a correlation coefficient of 1.000 for the past fiscal year. The
SmallCap Index Fund and S&P 500 Index Fund each had a correlation coefficient of
..991 and .998, respectively.
The small and mid-cap market sectors continued to outperform the large-cap
sector through this last fiscal year, albeit with more volatility. These
segments came out of the 2000 market bubble with much more attractive earning
multiples and continued momentum has resulted in significant out-performance for
the past three and five-year periods. These smaller sectors have demonstrated
higher volatility recently but investors of the SmallCap and MidCap Index Funds
have been well compensated for the risk. These trends inevitably shift.
Predicting market momentum and relative performance is a guessing game at best.
As such, we strongly encourage shareholders to consider a balanced approach for
the portion of their portfolios dedicated to stock funds. By this, we mean
owning equal balances of each of the three core index funds (S&P 500, MidCap and
SmallCap Funds) to achieve a more diversified equity portfolio. Over the past
several years, a balanced portfolio like this has outperformed a total market
index such as the Wilshire 5000. The reason for this is that smaller companies
represent a small element of such a massive index, their performance does not
factor significantly into the total return. During periods where large cap
stocks out perform their smaller counterparts, this strategy will result in
underperformance. So why do it? Two reasons. First, at times we need access to
our capital. By employing this method, we maintain a degree of flexibility where
we can draw from and an investor can reduce holdings from any of the three
holdings. This can prove handy for a number of reasons. Second, history is on
our side in that although more volatile, small cap stocks have returned more to
investors over the long haul.
The Nasdaq-100 Index Fund, which is largely a technology fund, had excellent
investment performance for the fiscal year. The three-year "look back"
performance is compelling and I believe interest in this area will begin to
solidify as investors come to realize that it is safe to get back in. This fund
is likely to continue to be volatile for investors and will generally perform
better during times of corporate prosperity. Conversely, as we all clearly
remember the year 2000, these stocks suffer during times of economic retreat.
Our European Growth & Income Fund is managed using ADRs for many of the stocks
that make up the Dow Stoxx 50, a European large cap Index. The Fund uses the
weightings of this benchmark as an approximation for weighting its holdings.
This fund generally provides investors a low-cost, highly efficient tool to
diversify internationally. The Fund significantly exceeded the performance of
the U.S. markets, as measured against the S&P 500 Index for the fiscal year. We
did not hedge the currency risk during the previous fiscal year and do not plan
to do so this year. The Manager does not invest in all members of the benchmark
because in some cases, ADRs are not available or do not provide sufficient
liquidity. It is conceivable that the manager may invest in the foreign stocks
directly in the future as the fund grows, international custody becomes more
economical or the availability of ADRs is insufficient.
The Equity Income Fund is actively managed as a value fund. The Equity Income
Fund S and K shares were up 16.51% and 16.00%, respectively for the year. The S
and K shares outperformed gains of the U.S. stock market as measured by the S&P
500 Index by 3.95% and 3.44%, respectively. The S and K shares also
out-performed the benchmark, the BARRA/Value Index, by 1.73% and 1.22%,
respectively for the year. The fund has invested a portion of its holdings in
either the S&P 500 or Russell 2000 futures contracts through the year. The fund
currently maintains an overweight focus in Consumer Cyclical, Utility, Energy
and Financial Service/Banking, relative to the S&P 500 Index.
The past fiscal year reflected a period where the economy had robust growth,
corporate profits were strong and general employment grew at a steady pace
without introducing substantially higher labor costs into the economy. This is
an ideal environment to invest in equities and the double-digit gains in all
stock funds reflect that. As previously discussed, the Fed Funds Rate increased
from 1.50% to 3.50% during the fiscal year. Monetary policy is still
accommodative according to Fed comments, and that is a positive for equities. At
the same time, the fiscal stimulus (congressional spending) has been substantial
and appears to be growing rapidly. Investors should look to the Fed to take
fiscal policy into consideration as they seek a neutral monetary policy. In my
judgment, this means higher rates than we normally would expect for a neutral
policy and there is a risk that the fed may overshoot a neutral policy. If we
see congressional spending controls introduced to appease voter concerns and/or
a signal from the Fed that they are nearing the end of their tightening, this
will be a strong signal to the equity markets. On the other hand, if the economy
falls under the weight of higher energy costs and the markets perceive this as a
long-term structural change, there should be downward price pressure on most
sectors.
While we cannot predict what the future holds, we can easily make the case that
investors who have continued to invest through troubled markets in the past have
been rewarded for their tenacity. We encourage you to maintain a diversified
portfolio using both stock and bond funds, in a balance which is appropriate for
your particular investment objectives.
3
REGULAR SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year 5 year 10 year
- --------------------------- ------ ------ -------
CIT S&P 500 Index Fund 12.31% -2.65% 9.84%
S&P 500 Composite Stock Price Index 12.55% -2.71% 9.85%
- --------------------------------------------------------------------------------
CIT S&P 500 Index Fund
versus the S&P 500 Composite Stock Price Index
[Line Chart]
S&P 500
Composite
CIT S&P 500 Stock Price
Index Fund Index
----------- -----------
08/31/95 $10,000.00 $10,000.00
09/30/95 $10,422.91 $10,421.79
10/31/95 $10,400.21 $10,384.57
11/30/95 $10,852.36 $10,839.99
12/31/95 $11,059.35 $11,048.79
01/31/96 $11,423.50 $11,424.39
02/29/96 $11,518.50 $11,530.61
03/31/96 $11,625.29 $11,641.65
04/30/96 $11,816.39 $11,813.10
05/31/96 $12,118.97 $12,117.28
06/30/96 $12,159.42 $12,163.46
07/31/96 $11,622.74 $11,626.36
08/31/96 $11,863.05 $11,871.95
09/30/96 $12,523.64 $12,539.56
10/31/96 $12,870.17 $12,885.29
11/30/96 $13,838.73 $13,858.40
12/31/96 $13,562.62 $13,583.88
01/31/97 $14,403.07 $14,432.05
02/28/97 $14,510.18 $14,545.34
03/31/97 $13,904.48 $13,948.85
04/30/97 $14,724.34 $14,780.86
05/31/97 $15,618.73 $15,680.17
06/30/97 $16,302.36 $16,382.28
07/31/97 $17,592.24 $17,685.41
08/31/97 $16,626.91 $16,695.40
09/30/97 $17,528.41 $17,609.21
10/31/97 $16,951.38 $17,021.80
11/30/97 $17,732.63 $17,809.11
12/31/97 $18,037.37 $18,114.73
01/31/98 $18,233.71 $18,314.88
02/28/98 $19,539.77 $19,635.07
03/31/98 $20,535.12 $20,639.76
04/30/98 $20,749.29 $20,847.33
05/31/98 $20,389.48 $20,489.47
06/30/98 $21,203.94 $21,321.09
07/31/98 $20,971.69 $21,094.64
08/31/98 $17,978.19 $18,047.94
09/30/98 $19,113.14 $19,204.22
10/31/98 $20,712.38 $20,764.93
11/30/98 $21,952.74 $22,022.93
12/31/98 $23,222.32 $23,291.19
01/31/99 $24,225.42 $24,264.81
02/28/99 $23,479.75 $23,511.07
03/31/99 $24,399.94 $24,451.46
04/30/99 $25,299.36 $25,398.35
05/31/99 $24,676.00 $24,799.43
06/30/99 $26,037.76 $26,174.63
07/31/99 $25,242.52 $25,358.11
08/31/99 $25,126.36 $25,232.62
09/30/99 $24,437.17 $24,541.70
10/31/99 $25,980.76 $26,094.08
11/30/99 $26,502.61 $26,624.52
12/31/99 $28,103.20 $28,191.64
01/31/00 $26,689.08 $26,775.38
02/29/00 $26,170.57 $26,269.03
03/31/00 $28,704.00 $28,837.27
04/30/00 $27,814.99 $27,970.02
05/31/00 $27,266.44 $27,395.82
06/30/00 $27,934.25 $28,071.32
07/31/00 $27,554.96 $27,632.82
08/31/00 $29,242.78 $29,348.24
09/30/00 $27,729.25 $27,799.18
10/31/00 $27,624.64 $27,681.28
11/30/00 $25,458.70 $25,500.50
12/31/00 $25,600.77 $25,625.58
01/31/01 $26,482.55 $26,534.18
02/28/01 $24,147.28 $24,116.28
03/31/01 $22,650.97 $22,589.34
04/30/01 $24,372.40 $24,343.35
05/31/01 $24,547.46 $24,506.70
06/30/01 $23,951.76 $23,910.45
07/31/01 $23,717.52 $23,674.95
08/31/01 $22,243.71 $22,194.39
09/30/01 $20,467.34 $20,402.29
10/31/01 $20,830.03 $20,791.54
11/30/01 $22,398.41 $22,386.02
12/31/01 $22,577.01 $22,582.28
01/31/02 $22,252.51 $22,252.92
02/28/02 $21,849.35 $21,823.68
03/31/02 $22,641.11 $22,644.54
04/30/02 $21,280.28 $21,272.25
05/31/02 $21,122.51 $21,116.10
06/30/02 $19,623.42 $19,612.54
07/31/02 $18,169.47 $18,084.10
08/31/02 $18,278.27 $18,202.50
09/30/02 $16,270.62 $16,226.07
10/31/02 $17,711.82 $17,652.86
11/30/02 $18,785.26 $18,690.88
12/31/02 $17,669.58 $17,593.41
01/31/03 $17,190.40 $17,133.41
02/28/03 $16,930.85 $16,875.97
03/31/03 $17,087.68 $17,039.36
04/30/03 $18,490.77 $18,442.23
05/31/03 $19,482.96 $19,412.97
06/30/03 $19,734.22 $19,660.97
07/31/03 $20,076.19 $20,007.77
08/31/03 $20,478.53 $20,397.20
09/30/03 $20,247.89 $20,181.24
10/31/03 $21,398.57 $21,322.28
11/30/03 $21,590.34 $21,509.67
12/31/03 $22,704.28 $22,636.94
01/31/04 $23,109.54 $23,052.38
02/29/04 $23,423.61 $23,372.69
03/31/04 $23,073.06 $23,020.14
04/30/04 $22,707.15 $22,659.23
05/31/04 $23,012.08 $22,969.54
06/30/04 $23,457.17 $23,416.05
07/31/04 $22,671.87 $22,640.02
08/31/04 $22,763.66 $22,730.96
09/30/04 $22,995.68 $22,976.98
10/31/04 $23,354.03 $23,328.00
11/30/04 $24,295.97 $24,271.57
12/31/04 $25,120.17 $25,097.24
01/31/05 $24,512.01 $24,485.50
02/28/05 $25,027.40 $25,000.50
03/31/05 $24,584.16 $24,558.27
04/30/05 $24,108.01 $24,092.71
05/31/05 $24,863.64 $24,858.62
06/30/05 $24,901.94 $24,894.24
07/31/05 $25,816.16 $25,819.64
08/31/05 $25,566.83 $25,583.90
- --------------------------------------------------------------------------------
K SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year Inception**
- --------------------------- ------ -----------
CIT S&P 500 Index Fund 11.77% 9.51%
S&P 500 Composite Stock Price Index 12.55% 10.26%
- --------------------------------------------------------------------------------
CIT S&P 500 Index Fund
versus the S&P 500 Composite Stock Price Index
[Line Chart]
S&P 500
Composite
CIT S&P 500 Stock Price
Index Fund Index
----------- -----------
10/31/03 $10,000.00 $10,000.00
11/30/03 $10,084.94 $10,087.88
12/31/03 $10,605.66 $10,616.57
01/31/04 $10,794.54 $10,811.40
02/29/04 $10,936.20 $10,961.63
03/31/04 $10,762.53 $10,796.28
04/30/04 $10,587.56 $10,627.02
05/31/04 $10,729.42 $10,772.55
06/30/04 $10,931.20 $10,981.96
07/31/04 $10,561.77 $10,618.01
08/31/04 $10,594.93 $10,660.66
09/30/04 $10,703.14 $10,776.04
10/31/04 $10,859.78 $10,940.67
11/30/04 $11,291.71 $11,383.19
12/31/04 $11,672.46 $11,770.43
01/31/05 $11,386.25 $11,483.52
02/28/05 $11,619.99 $11,725.06
03/31/05 $11,409.54 $11,517.65
04/30/05 $11,184.69 $11,299.35
05/31/05 $11,533.91 $11,658.55
06/30/05 $11,544.53 $11,675.26
07/31/05 $11,961.63 $12,109.26
08/31/05 $11,841.78 $11,998.71
- --------------------------------------------------------------------------------
* Past performance does not predict future performance. The returns shown do
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares
REGULAR SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year 5 year 10 year
- --------------------------- ------ ------ -------
CIT S&P MidCap Index Fund 23.81% 6.87% 14.35%
S&P MidCap 400 Index 23.87% 6.73% 14.32%
- --------------------------------------------------------------------------------
CIT S&P MidCap Index Fund
versus the S&P MidCap 400 Index
[Line Chart]
CIT
S&P MidCap S&P MidCap
Index Fund 400 Index
----------- -----------
08/31/95 $10,000.00 $10,000.00
09/30/95 $10,251.08 $10,242.96
10/31/95 $9,982.08 $9,979.32
11/30/95 $10,409.08 $10,412.90
12/31/95 $10,382.65 $10,386.98
01/31/96 $10,536.13 $10,537.76
02/29/96 $10,889.12 $10,895.14
03/31/96 $11,022.18 $11,025.79
04/30/96 $11,353.39 $11,362.72
05/31/96 $11,499.74 $11,516.15
06/30/96 $11,323.74 $11,343.37
07/31/96 $10,565.73 $10,577.86
08/31/96 $11,176.78 $11,188.77
09/30/96 $11,667.00 $11,676.52
10/31/96 $11,690.29 $11,710.65
11/30/96 $12,353.20 $12,369.38
12/31/96 $12,339.44 $12,382.90
01/31/97 $12,813.09 $12,847.52
02/28/97 $12,706.93 $12,742.25
03/31/97 $12,163.95 $12,199.81
04/30/97 $12,459.03 $12,515.97
05/31/97 $13,541.00 $13,610.38
06/30/97 $13,930.91 $13,992.38
07/31/97 $15,304.27 $15,376.38
08/31/97 $15,271.37 $15,358.13
09/30/97 $16,144.40 $16,240.53
10/31/97 $15,467.93 $15,534.21
11/30/97 $15,688.37 $15,764.32
12/31/97 $16,274.41 $16,374.84
01/31/98 $15,988.58 $16,063.07
02/28/98 $17,283.75 $17,393.09
03/31/98 $18,083.44 $18,177.15
04/30/98 $18,405.88 $18,508.28
05/31/98 $17,572.92 $17,676.37
06/30/98 $17,693.65 $17,787.05
07/31/98 $17,002.07 $17,097.19
08/31/98 $13,840.57 $13,917.12
09/30/98 $15,118.73 $15,215.57
10/31/98 $16,452.21 $16,572.87
11/30/98 $17,268.01 $17,399.93
12/31/98 $19,283.27 $19,500.51
01/31/99 $18,576.39 $18,741.65
02/28/99 $17,588.83 $17,760.62
03/31/99 $18,085.52 $18,256.82
04/30/99 $19,513.60 $19,696.13
05/31/99 $19,607.42 $19,781.77
06/30/99 $20,660.65 $20,840.39
07/31/99 $20,221.95 $20,394.24
08/31/99 $19,532.56 $19,695.25
09/30/99 $18,935.00 $19,087.98
10/31/99 $19,919.44 $20,059.96
11/30/99 $20,916.51 $21,112.69
12/31/99 $22,120.00 $22,366.36
01/31/00 $21,515.41 $21,736.50
02/29/00 $22,961.16 $23,257.27
03/31/00 $25,155.29 $25,202.72
04/30/00 $24,351.48 $24,321.46
05/31/00 $24,008.87 $24,021.18
06/30/00 $24,417.23 $24,374.39
07/31/00 $24,840.27 $24,759.82
08/31/00 $27,431.38 $27,522.72
09/30/00 $27,262.69 $27,334.30
10/31/00 $26,414.46 $26,406.93
11/30/00 $24,473.07 $24,414.98
12/31/00 $26,431.39 $26,282.38
01/31/01 $26,951.51 $26,868.19
02/28/01 $25,454.20 $25,335.74
03/31/01 $23,685.80 $23,453.39
04/30/01 $26,231.47 $26,039.71
05/31/01 $26,863.93 $26,645.97
06/30/01 $26,803.53 $26,538.38
07/31/01 $26,423.35 $26,142.85
08/31/01 $25,631.28 $25,288.16
09/30/01 $22,588.16 $22,143.32
10/31/01 $23,477.70 $23,123.50
11/30/01 $25,222.88 $24,843.61
12/31/01 $26,518.15 $26,125.14
01/31/02 $26,406.33 $25,990.94
02/28/02 $26,438.28 $26,022.57
03/31/02 $28,305.57 $27,882.56
04/30/02 $28,177.56 $27,752.15
05/31/02 $27,729.54 $27,284.44
06/30/02 $25,738.39 $25,287.69
07/31/02 $23,239.83 $22,837.64
08/31/02 $23,383.97 $22,952.56
09/30/02 $21,483.78 $21,103.68
10/31/02 $22,414.38 $22,017.37
11/30/02 $23,697.95 $23,289.79
12/31/02 $22,748.43 $22,333.19
01/31/03 $22,120.99 $21,681.01
02/28/03 $21,557.91 $21,164.42
03/31/03 $21,683.56 $21,342.50
04/30/03 $23,231.24 $22,890.85
05/31/03 $25,117.46 $24,786.81
06/30/03 $25,417.33 $25,102.50
07/31/03 $26,321.62 $25,993.49
08/31/03 $27,468.15 $27,170.76
09/30/03 $27,041.52 $26,755.26
10/31/03 $29,063.16 $28,778.01
11/30/03 $30,098.24 $29,780.29
12/31/03 $30,608.83 $30,282.39
01/31/04 $31,256.98 $30,938.30
02/29/04 $32,034.75 $31,681.35
03/31/04 $32,161.30 $31,815.46
04/30/04 $31,090.34 $30,771.88
05/31/04 $31,723.18 $31,409.38
06/30/04 $32,444.78 $32,123.63
07/31/04 $30,949.33 $30,625.22
08/31/04 $30,884.31 $30,544.40
09/30/04 $31,814.26 $31,448.88
10/31/04 $32,205.01 $31,951.40
11/30/04 $34,061.12 $33,853.47
12/31/04 $35,482.34 $35,270.75
01/31/05 $34,552.46 $34,370.46
02/28/05 $35,743.36 $35,522.94
03/31/05 $35,320.83 $35,129.84
04/30/05 $33,929.61 $33,764.91
05/31/05 $35,959.16 $35,797.15
06/30/05 $36,812.56 $36,626.89
07/31/05 $38,713.83 $38,550.20
08/31/05 $38,238.51 $38,120.25
- --------------------------------------------------------------------------------
K SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year Inception**
- --------------------------- ------ -----------
CIT S&P MidCap Index Fund 23.20% 15.89%
S&P MidCap 400 Index 23.26% 16.79%
** K Share commencement of operations was 10/16/03.
- --------------------------------------------------------------------------------
CIT S&P MidCap Index Fund
versus the S&P MidCap 400 Index
[Line Chart]
CIT
S&P MidCap S&P MidCap
Index Fund 400 Index
----------- -----------
10/31/03 $10,000.00 $10,000.00
11/30/03 $10,356.35 $10,348.28
12/31/03 $10,532.52 $10,522.75
01/31/04 $10,749.74 $10,750.67
02/29/04 $11,011.52 $11,008.87
03/31/04 $11,053.13 $11,055.47
04/30/04 $10,679.87 $10,692.84
05/31/04 $10,891.56 $10,914.37
06/30/04 $11,129.62 $11,162.56
07/31/04 $10,616.89 $10,641.88
08/31/04 $10,589.03 $10,613.80
09/30/04 $10,905.41 $10,928.09
10/31/04 $11,033.65 $11,102.71
11/30/04 $11,663.67 $11,763.66
12/31/04 $12,140.86 $12,256.14
01/31/05 $11,822.83 $11,943.31
02/28/05 $12,224.55 $12,343.78
03/31/05 $12,076.70 $12,207.18
04/30/05 $11,595.86 $11,732.99
05/31/05 $12,283.56 $12,439.18
06/30/05 $12,570.83 $12,727.51
07/31/05 $13,213.91 $13,395.84
08/31/05 $13,046.15 $13,246.44
- --------------------------------------------------------------------------------
4
REGULAR SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year 5 year Inception
- --------------------------- ------ ------ ---------
CIT S&P SmallCap Index Fund 26.17% 9.07% 10.77%
S&P SmallCap 600 Index 26.49% 10.15% 11.75%
- --------------------------------------------------------------------------------
CIT S&P SmallCap Index Fund
versus the S&P SmallCap 600 Index
[Line Chart]
CIT
S&P SmallCap S&P SmallCap
Index Fund 600 Index
----------- -----------
10/02/96 $10,000.00 $10,000.00
10/31/96 $9,850.00 $9,865.00
11/30/96 $10,240.00 $10,377.08
12/31/96 $10,372.50 $10,498.50
01/31/97 $10,635.09 $10,673.14
02/28/97 $10,382.60 $10,452.33
03/31/97 $9,839.13 $9,916.14
04/30/97 $10,001.76 $10,037.40
05/31/97 $11,109.68 $11,216.33
06/30/97 $11,578.46 $11,711.91
07/31/97 $12,200.19 $12,448.12
08/31/97 $12,485.57 $12,761.55
09/30/97 $13,284.45 $13,605.40
10/31/97 $12,711.75 $13,018.47
11/30/97 $12,642.28 $12,923.80
12/31/97 $12,867.56 $13,184.01
01/31/98 $12,592.20 $12,926.92
02/28/98 $13,672.44 $14,104.17
03/31/98 $14,190.54 $14,642.32
04/30/98 $14,286.06 $14,728.11
05/31/98 $13,490.03 $13,948.22
06/30/98 $13,503.30 $13,988.44
07/31/98 $12,439.21 $12,918.67
08/31/98 $10,066.29 $10,428.73
09/30/98 $10,698.78 $11,065.33
10/31/98 $11,178.79 $11,578.43
11/30/98 $11,778.62 $12,229.41
12/31/98 $12,493.43 $13,009.29
01/31/99 $12,374.45 $12,846.77
02/28/99 $11,260.31 $11,689.12
03/31/99 $11,424.62 $11,840.10
04/30/99 $12,150.85 $12,622.18
05/31/99 $12,389.32 $12,929.48
06/30/99 $13,107.97 $13,664.96
07/31/99 $12,977.75 $13,544.63
08/31/99 $12,435.21 $12,948.77
09/30/99 $12,472.42 $13,003.62
10/31/99 $12,483.30 $12,970.76
11/30/99 $13,011.35 $13,519.66
12/31/99 $14,172.02 $14,623.52
01/31/00 $13,784.37 $14,170.44
02/29/00 $15,745.42 $16,067.58
03/31/00 $15,079.69 $15,473.77
04/30/00 $14,771.24 $15,208.41
05/31/00 $14,280.01 $14,758.94
06/30/00 $15,239.17 $15,632.38
07/31/00 $14,827.30 $15,247.93
08/31/00 $16,120.11 $16,599.18
09/30/00 $15,632.16 $16,147.33
10/31/00 $15,586.25 $16,248.01
11/30/00 $14,034.28 $14,557.24
12/31/00 $15,722.03 $16,350.87
01/31/01 $16,231.93 $17,051.39
02/28/01 $15,260.69 $16,011.29
03/31/01 $14,583.85 $15,277.90
04/30/01 $15,654.23 $16,442.00
05/31/01 $15,909.66 $16,756.73
06/30/01 $16,458.25 $17,370.39
07/31/01 $16,092.79 $17,080.48
08/31/01 $15,702.95 $16,691.36
09/30/01 $13,658.04 $14,435.52
10/31/01 $14,378.16 $15,205.26
11/30/01 $15,366.82 $16,316.91
12/31/01 $16,391.35 $17,421.01
01/31/02 $16,489.06 $17,572.96
02/28/02 $16,232.57 $17,270.61
03/31/02 $17,434.56 $18,634.66
04/30/02 $17,898.83 $19,161.26
05/31/02 $17,153.55 $18,368.73
06/30/02 $16,247.13 $17,418.59
07/31/02 $14,034.39 $14,958.39
08/31/02 $14,181.09 $15,101.05
09/30/02 $13,296.73 $14,177.00
10/31/02 $13,749.33 $14,630.00
11/30/02 $14,495.50 $15,391.62
12/31/02 $13,990.55 $14,873.01
01/31/03 $13,499.22 $14,361.78
02/28/03 $13,093.88 $13,901.93
03/31/03 $13,179.49 $14,010.89
04/30/03 $14,224.51 $15,148.00
05/31/03 $15,343.29 $16,368.40
06/30/03 $15,695.89 $16,794.31
07/31/03 $16,520.05 $17,667.24
08/31/03 $17,307.30 $18,526.65
09/30/03 $16,824.74 $17,982.28
10/31/03 $18,252.44 $19,540.85
11/30/03 $18,935.71 $20,280.33
12/31/03 $19,255.20 $20,639.50
01/31/04 $19,826.64 $21,232.53
02/29/04 $20,186.90 $21,640.93
03/31/04 $20,431.63 $21,925.58
04/30/04 $19,748.09 $21,198.61
05/31/04 $20,021.50 $21,522.72
06/30/04 $21,049.30 $22,714.75
07/31/04 $19,917.21 $21,469.82
08/31/04 $19,718.17 $21,282.14
09/30/04 $20,756.45 $22,404.40
10/31/04 $21,154.89 $22,822.13
11/30/04 $22,955.96 $24,772.20
12/31/04 $23,488.57 $25,316.67
01/31/05 $22,903.31 $24,742.69
02/28/05 $23,540.59 $25,451.97
03/31/05 $22,918.91 $24,794.72
04/30/05 $21,629.72 $23,410.41
05/31/05 $23,088.20 $24,960.29
06/30/05 $23,861.84 $25,771.75
07/31/05 $25,283.12 $27,322.93
08/31/05 $24,878.91 $26,919.95
- --------------------------------------------------------------------------------
K SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year Inception **
- --------------------------- ------ ------------
CIT S&P SmallCap Index Fund 25.53% 17.65%
S&P SmallCap 600 Index 26.49% 18.90%
- --------------------------------------------------------------------------------
CIT S&P SmallCap Index Fund
versus the S&P SmallCap 600 Index
[Line Chart]
CIT
S&P SmallCap S&P SmallCap
Index Fund 600 Index
----------- -----------
10/31/03 $10,000.00 $10,000.00
11/30/03 $10,367.60 $10,378.43
12/31/03 $10,544.48 $10,562.23
01/31/04 $10,843.81 $10,865.72
02/29/04 $11,047.89 $11,074.72
03/31/04 $11,170.34 $11,220.39
04/30/04 $10,789.38 $10,848.36
05/31/04 $10,939.04 $11,014.22
06/30/04 $11,496.88 $11,624.24
07/31/04 $10,871.01 $10,987.15
08/31/04 $10,762.16 $10,891.10
09/30/04 $11,320.00 $11,465.42
10/31/04 $11,537.70 $11,679.19
11/30/04 $12,508.12 $12,677.13
12/31/04 $12,791.90 $12,955.75
01/31/05 $12,536.49 $12,662.02
02/28/05 $12,877.05 $13,024.99
03/31/05 $12,529.68 $12,688.64
04/30/05 $11,827.28 $11,980.22
05/31/05 $12,558.07 $12,773.37
06/30/05 $12,970.92 $13,188.63
07/31/05 $13,730.15 $13,982.44
08/31/05 $13,510.19 $13,776.21
- --------------------------------------------------------------------------------
* Past performance does not predict future performance. The returns shown do
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares
REGULAR SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year 5 year Inception
- --------------------------- ------ ------ ---------
CIT Equity Income Fund 16.51% 3.50% 8.69%
S&P BARRA/Value Index 14.77% 2.09% 9.21%
S&P 500 Composite Stock Price Index 12.55% -2.71% 8.84%
- --------------------------------------------------------------------------------
Equity Income Fund
versus the S&P BARRA/Value Index
& the S&P 500 Composite Stock Price Index
[Line Chart]
CIT S&P 500
Equity S&P Composite
Income BARRA/Value Stock Price
Fund Index Index
---------- ---------- ----------
09/04/96 $10,000.00 $10,000.00 $10,000.00
09/30/96 $10,206.90 $10,366.00 $10,562.34
10/31/96 $10,527.75 $10,716.60 $10,853.55
11/30/96 $11,208.65 $11,533.54 $11,673.23
12/31/96 $11,096.97 $11,344.34 $11,441.99
01/31/97 $11,574.49 $11,868.70 $12,156.43
02/28/97 $11,667.91 $11,954.63 $12,251.86
03/31/97 $11,245.42 $11,546.17 $11,749.42
04/30/97 $11,737.08 $11,978.54 $12,450.24
05/31/97 $12,354.27 $12,728.84 $13,207.75
06/30/97 $12,801.36 $13,215.15 $13,799.15
07/31/97 $13,824.21 $14,275.12 $14,896.80
08/31/97 $13,328.60 $13,630.99 $14,062.90
09/30/97 $14,064.00 $14,429.56 $14,832.61
10/31/97 $13,617.86 $13,899.93 $14,337.83
11/30/97 $14,079.12 $14,428.22 $15,001.00
12/31/97 $14,347.76 $14,747.90 $15,258.43
01/31/98 $14,204.29 $14,566.05 $15,427.02
02/28/98 $15,219.67 $15,657.62 $16,539.04
03/31/98 $16,086.82 $16,450.20 $17,385.31
04/30/98 $16,220.05 $16,644.84 $17,560.16
05/31/98 $16,075.72 $16,411.09 $17,258.72
06/30/98 $16,228.60 $16,535.54 $17,959.22
07/31/98 $15,792.70 $16,176.93 $17,768.47
08/31/98 $13,389.71 $13,579.24 $15,202.17
09/30/98 $13,865.61 $14,405.61 $16,176.13
10/31/98 $14,845.56 $15,531.53 $17,490.75
11/30/98 $15,431.27 $16,339.96 $18,550.39
12/31/98 $16,233.81 $16,911.80 $19,618.67
01/31/99 $16,449.05 $17,253.42 $20,438.77
02/28/99 $16,131.85 $16,883.59 $19,803.88
03/31/99 $16,445.99 $17,395.26 $20,595.99
04/30/99 $17,493.80 $18,896.63 $21,393.57
05/31/99 $16,901.56 $18,556.30 $20,889.09
06/30/99 $17,588.21 $19,268.48 $22,047.46
07/31/99 $17,061.83 $18,676.01 $21,359.69
08/31/99 $16,455.34 $18,202.03 $21,253.98
09/30/99 $15,681.66 $17,492.17 $20,672.00
10/31/99 $16,291.44 $18,480.41 $21,979.61
11/30/99 $16,253.45 $18,372.46 $22,426.41
12/31/99 $16,868.26 $19,062.26 $23,746.43
01/31/00 $16,248.80 $18,455.75 $22,553.48
02/29/00 $15,927.16 $17,302.86 $22,126.97
03/31/00 $17,176.79 $19,105.47 $24,290.26
04/30/00 $16,709.97 $18,977.54 $23,559.75
05/31/00 $16,554.36 $19,036.18 $23,076.09
06/30/00 $16,354.58 $18,285.13 $23,645.08
07/31/00 $16,474.84 $18,651.20 $23,275.72
08/31/00 $17,809.66 $19,900.84 $24,720.65
09/30/00 $17,386.60 $19,895.95 $23,415.85
10/31/00 $17,337.90 $20,266.71 $23,316.54
11/30/00 $16,303.59 $19,230.01 $21,479.62
12/31/00 $16,667.74 $20,218.87 $21,584.98
01/31/01 $16,029.03 $21,071.89 $22,350.31
02/28/01 $15,881.64 $19,676.61 $20,313.66
03/31/01 $15,316.88 $18,900.49 $19,027.48
04/30/01 $16,255.66 $20,181.16 $20,504.93
05/31/01 $16,428.59 $20,392.08 $20,642.52
06/30/01 $15,894.23 $19,731.64 $20,140.29
07/31/01 $15,534.40 $19,390.46 $19,941.92
08/31/01 $15,149.77 $18,271.03 $18,694.82
09/30/01 $14,332.47 $16,536.74 $17,185.28
10/31/01 $14,382.32 $16,537.29 $17,513.16
11/30/01 $15,242.27 $17,587.21 $18,856.23
12/31/01 $15,699.92 $17,855.87 $19,021.54
01/31/02 $15,562.20 $17,366.30 $18,744.11
02/28/02 $15,512.12 $17,209.78 $18,382.56
03/31/02 $16,146.87 $18,091.79 $19,073.98
04/30/02 $15,983.77 $17,186.06 $17,918.08
05/31/02 $15,732.85 $17,255.55 $17,786.54
06/30/02 $15,077.19 $16,167.65 $16,520.07
07/31/02 $14,171.05 $14,421.22 $15,232.63
08/31/02 $14,322.07 $14,519.61 $15,332.35
09/30/02 $13,201.10 $12,862.34 $13,667.57
10/31/02 $13,542.18 $13,929.78 $14,869.38
11/30/02 $13,858.00 $14,906.92 $15,743.73
12/31/02 $13,716.89 $14,132.49 $14,819.31
01/31/03 $13,222.02 $13,746.81 $14,431.84
02/28/03 $13,044.37 $13,371.84 $14,214.99
03/31/03 $13,245.75 $13,354.58 $14,352.62
04/30/03 $14,072.81 $14,674.04 $15,534.29
05/31/03 $14,925.32 $15,752.62 $16,351.96
06/30/03 $15,197.49 $15,868.23 $16,560.86
07/31/03 $15,414.41 $16,220.69 $16,852.98
08/31/03 $15,720.66 $16,570.74 $17,181.00
09/30/03 $15,679.57 $16,271.29 $16,999.09
10/31/03 $16,447.55 $17,383.04 $17,960.22
11/30/03 $16,805.94 $17,538.93 $18,118.05
12/31/03 $17,489.19 $18,621.35 $19,067.59
01/31/04 $17,720.49 $18,950.61 $19,417.51
02/29/04 $18,247.35 $19,378.42 $19,687.32
03/31/04 $18,259.30 $19,243.97 $19,390.36
04/30/04 $17,744.23 $18,769.49 $19,086.35
05/31/04 $17,988.89 $18,984.91 $19,347.74
06/30/04 $18,378.67 $19,397.05 $19,723.84
07/31/04 $18,068.92 $19,027.81 $19,070.17
08/31/04 $18,159.26 $19,232.15 $19,146.78
09/30/04 $18,582.07 $19,596.06 $19,354.01
10/31/04 $18,569.12 $19,892.02 $19,649.68
11/30/04 $19,592.11 $20,861.97 $20,444.47
12/31/04 $20,190.10 $21,540.78 $21,139.95
01/31/05 $19,838.63 $21,017.41 $20,624.66
02/28/05 $20,437.44 $21,397.72 $21,058.46
03/31/05 $19,956.70 $21,017.76 $20,685.96
04/30/05 $19,446.33 $20,588.78 $20,293.81
05/31/05 $20,153.00 $21,239.97 $20,938.95
06/30/05 $20,500.31 $21,560.69 $20,968.96
07/31/05 $21,300.90 $22,239.79 $21,748.44
08/31/05 $21,156.53 $22,072.81 $21,549.87
- --------------------------------------------------------------------------------
K SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year Inception**
- --------------------------- ------ -----------
CIT Equity Income Fund 16.00% 13.62%
S&P BARRA/Value Index 14.77% 13.82%
S&P 500 Composite Stock Price Index 12.55% 10.26%
** K Share commencement of operations was 10/16/03.
- --------------------------------------------------------------------------------
Equity Income Fund
versus the S&P BARRA/Value Index
& the S&P 500 Composite Stock Price Index
[Line Chart]
CIT S&P 500
Equity S&P Composite
Income BARRA/Value Stock Price
Fund Index Index
---------- ---------- ----------
10/31/03 $10,000.00 $10,000.00 $10,000.00
11/30/03 $10,217.90 $10,089.68 $10,087.88
12/31/03 $10,627.08 $10,712.36 $10,616.57
01/31/04 $10,751.65 $10,901.78 $10,811.40
02/29/04 $11,070.85 $11,147.89 $10,961.63
03/31/04 $11,077.40 $11,070.54 $10,796.28
04/30/04 $10,758.00 $10,797.59 $10,627.02
05/31/04 $10,898.22 $10,921.51 $10,772.55
06/30/04 $11,137.53 $11,158.61 $10,981.96
07/31/04 $10,934.89 $10,946.19 $10,618.01
08/31/04 $10,989.45 $11,063.74 $10,660.66
09/30/04 $11,244.69 $11,273.09 $10,776.04
10/31/04 $11,229.08 $11,443.35 $10,940.67
11/30/04 $11,838.16 $12,001.34 $11,383.19
12/31/04 $12,196.36 $12,391.84 $11,770.43
01/31/05 $11,984.72 $12,090.75 $11,483.52
02/28/05 $12,345.29 $12,309.54 $11,725.06
03/31/05 $12,049.15 $12,090.96 $11,517.65
04/30/05 $11,734.35 $11,844.18 $11,299.35
05/31/05 $12,159.34 $12,218.79 $11,658.55
06/30/05 $12,353.88 $12,403.29 $11,675.26
07/31/05 $12,834.80 $12,793.96 $12,109.26
08/31/05 $12,748.07 $12,697.90 $11,998.71
- --------------------------------------------------------------------------------
5
REGULAR SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year 5 year Inception
- --------------------------- ------ ------ ---------
CIT European Growth & Income Fund 23.15% -0.68% -1.25%
Dow Jones Stoxx 50 Index (U.S. Dollars) 23.71% -0.67% -1.56%
- --------------------------------------------------------------------------------
European Growth & Income Fund
versus the Dow Jones Stoxx 50 Index (U.S. Dollars)
[Line Chart]
CIT
European Dow Jones
Growth & Stoxx 50
Income Index
Fund (U.S. Dollars)
---------- -----------
01/18/00 $10,000.00 $10,000.00
01/31/00 $9,720.00 $9,288.76
02/29/00 $10,060.00 $9,906.66
03/31/00 $10,298.80 $10,212.79
04/30/00 $9,918.48 $9,769.41
05/31/00 $9,858.42 $9,751.62
06/30/00 $9,892.45 $9,778.92
07/31/00 $9,641.12 $9,581.25
08/31/00 $9,641.12 $9,468.26
09/30/00 $8,996.80 $8,974.88
10/31/00 $9,067.41 $8,946.49
11/30/00 $8,593.36 $8,565.10
12/31/00 $9,047.23 $9,116.20
01/31/01 $9,037.15 $9,052.06
02/28/01 $8,119.31 $8,082.22
03/31/01 $7,664.53 $7,535.40
04/30/01 $8,281.33 $8,135.13
05/31/01 $7,927.43 $7,727.48
06/30/01 $7,517.41 $7,409.36
07/31/01 $7,476.77 $7,402.44
08/31/01 $7,243.12 $7,158.56
09/30/01 $6,711.12 $6,564.75
10/31/01 $6,915.10 $6,748.01
11/30/01 $7,108.89 $6,926.47
12/31/01 $7,272.07 $7,087.30
01/31/02 $6,904.90 $6,672.46
02/28/02 $6,853.90 $6,687.78
03/31/02 $7,143.87 $7,004.56
04/30/02 $7,072.33 $6,894.81
05/31/02 $7,000.79 $6,850.26
06/30/02 $6,696.64 $6,646.74
07/31/02 $6,016.67 $5,874.98
08/31/02 $5,975.46 $5,859.81
09/30/02 $5,266.96 $5,034.40
10/31/02 $5,763.64 $5,595.70
11/30/02 $6,043.03 $5,847.76
12/31/02 $5,777.72 $5,567.07
01/31/03 $5,653.46 $5,310.24
02/28/03 $5,446.38 $5,178.73
03/31/03 $5,405.48 $5,094.98
04/30/03 $6,040.80 $5,793.74
05/31/03 $6,415.75 $6,124.28
06/30/03 $6,411.48 $6,191.10
07/31/03 $6,463.78 $6,263.66
08/31/03 $6,463.78 $6,161.35
09/30/03 $6,562.20 $6,297.49
10/31/03 $6,919.18 $6,661.26
11/30/03 $7,202.67 $6,987.91
12/31/03 $7,812.38 $7,621.51
01/31/04 $7,864.95 $7,610.82
02/29/04 $8,033.18 $7,778.23
03/31/04 $7,707.44 $7,489.40
04/30/04 $7,644.09 $7,455.51
05/31/04 $7,718.00 $7,524.34
06/30/04 $7,810.06 $7,561.16
07/31/04 $7,511.73 $7,382.68
08/31/04 $7,565.00 $7,402.34
09/30/04 $7,817.74 $7,708.15
10/31/04 $8,138.57 $7,966.29
11/30/04 $8,619.83 $8,486.55
12/31/04 $8,927.19 $8,800.45
01/31/05 $8,691.70 $8,576.98
02/28/05 $9,087.75 $8,989.61
03/31/05 $8,824.65 $8,756.93
04/30/05 $8,717.03 $8,595.24
05/31/05 $8,706.27 $8,612.81
06/30/05 $8,794.51 $8,749.60
07/31/05 $9,131.51 $9,077.25
08/31/05 $9,316.31 $9,157.24
- --------------------------------------------------------------------------------
K SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year Inception**
- --------------------------- ------ -----------
CIT European Growth & Income Fund 22.78% 16.53%
Dow Jones Stoxx 50 Index (U.S. Dollars) 23.71% 18.32%
- --------------------------------------------------------------------------------
European Growth & Income Fund
versus the Dow Jones Stoxx 50 Index (U.S. Dollars)
[Line Chart]
CIT
European Dow Jones
Growth & Stoxx 50
Income Index
Fund (U.S. Dollars)
---------- -----------
10/31/03 $10,000.00 $10,000.00
11/30/03 $10,409.71 $10,490.38
12/31/03 $11,290.44 $11,441.55
01/31/04 $11,366.31 $11,425.50
02/29/04 $11,593.94 $11,676.82
03/31/04 $11,111.97 $11,243.22
04/30/04 $11,020.65 $11,192.35
05/31/04 $11,111.97 $11,295.67
06/30/04 $11,243.04 $11,350.95
07/31/04 $10,814.74 $11,083.01
08/31/04 $10,875.92 $11,112.53
09/30/04 $11,249.62 $11,571.62
10/31/04 $11,709.41 $11,959.14
11/30/04 $12,383.77 $12,740.16
12/31/04 $12,812.91 $13,211.40
01/31/05 $12,491.06 $12,875.93
02/28/05 $13,058.13 $13,495.36
03/31/05 $12,681.56 $13,146.06
04/30/05 $12,527.67 $12,903.33
05/31/05 $12,496.89 $12,929.71
06/30/05 $12,624.16 $13,135.06
07/31/05 $13,105.53 $13,626.94
08/31/05 $13,353.97 $13,747.02
- --------------------------------------------------------------------------------
* Past performance does not predict future performance. The returns shown do
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares
REGULAR SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year 5 year Inception
- --------------------------- ------ ------ ---------
CIT Nasdaq-100 Index Fund 15.47% -17.53% -14.74%
Nasdaq-100 Index 16.01% -17.10% -13.91%
- --------------------------------------------------------------------------------
Nasdaq-100 Index Fund
versus the Nasdaq-100 Index
[Line Chart]
CIT
Nasdaq-100
Index Nasdaq-100
Fund Index
---------- -----------
01/18/00 $10,000.00 $10,000.00
01/31/00 $9,380.00 $9,628.57
02/29/00 $11,050.00 $11,508.66
03/31/00 $11,508.20 $11,861.76
04/30/00 $9,865.60 $10,177.39
05/31/00 $8,743.83 $8,966.38
06/30/00 $9,889.24 $10,152.48
07/31/00 $9,498.08 $9,736.12
08/31/00 $10,701.64 $10,999.62
09/30/00 $9,358.67 $9,632.04
10/31/00 $8,601.50 $8,854.49
11/30/00 $6,537.34 $6,762.09
12/31/00 $6,149.17 $6,317.43
01/31/01 $6,790.55 $6,995.76
02/28/01 $4,998.74 $5,148.81
03/31/01 $4,108.54 $4,244.99
04/30/01 $4,842.57 $5,005.81
05/31/01 $4,699.84 $4,856.99
06/30/01 $4,783.54 $4,938.78
07/31/01 $4,385.77 $4,543.49
08/31/01 $3,824.80 $3,966.55
09/30/01 $3,035.26 $3,153.33
10/31/01 $3,546.24 $3,683.65
11/30/01 $4,149.21 $4,308.15
12/31/01 $4,098.11 $4,256.88
01/31/02 $4,036.79 $4,184.54
02/28/02 $3,546.24 $3,669.55
03/31/02 $3,781.30 $3,922.23
04/30/02 $3,321.41 $3,448.00
05/31/02 $3,147.67 $3,262.70
06/30/02 $2,718.44 $2,838.97
07/31/02 $2,503.83 $2,598.21
08/31/02 $2,462.95 $2,545.22
09/30/02 $2,176.80 $2,248.52
10/31/02 $2,575.37 $2,672.83
11/30/02 $2,912.62 $3,015.03
12/31/02 $2,565.15 $2,659.52
01/31/03 $2,554.93 $2,656.20
02/28/03 $2,616.25 $2,729.94
03/31/03 $2,646.91 $2,754.28
04/30/03 $2,871.74 $2,990.82
05/31/03 $3,117.01 $3,239.73
06/30/03 $3,127.23 $3,250.08
07/31/03 $3,311.19 $3,454.00
08/31/03 $3,484.92 $3,628.59
09/30/03 $3,382.73 $3,527.32
10/31/03 $3,668.88 $3,834.56
11/30/03 $3,699.54 $3,856.65
12/31/03 $3,801.73 $3,975.50
01/31/04 $3,863.05 $4,043.98
02/29/04 $3,801.73 $3,983.71
03/31/04 $3,719.98 $3,897.16
04/30/04 $3,617.78 $3,797.34
05/31/04 $3,791.51 $3,974.39
06/30/04 $3,914.15 $4,111.25
07/31/04 $3,617.78 $3,796.78
08/31/04 $3,536.02 $3,713.20
09/30/04 $3,638.22 $3,832.80
10/31/04 $3,832.39 $4,033.86
11/30/04 $4,047.01 $4,266.08
12/31/04 $4,185.49 $4,402.66
01/31/05 $3,929.02 $4,127.37
02/28/05 $3,908.50 $4,107.46
03/31/05 $3,836.69 $4,030.38
04/30/05 $3,672.56 $3,863.17
05/31/05 $3,990.57 $4,197.47
06/30/05 $3,857.21 $4,064.10
07/31/05 $4,144.45 $4,368.33
08/31/05 $4,082.90 $4,307.86
- --------------------------------------------------------------------------------
K SHARES
Average Annual Total Returns*
For periods ended 8/31/2005 1 year Inception **
- --------------------------- ------ ------------
CIT Nasdaq-100 Index Fund 15.13% 5.08%
Nasdaq-100 Index 16.01% 6.01%
** K Share commencement of operations was 10/16/03.
- --------------------------------------------------------------------------------
Nasdaq-100 Index Fund
versus the Nasdaq-100 Index
[Line Chart]
CIT
Nasdaq-100
Index Nasdaq-100
Fund Index
---------- -----------
10/31/03 $10,000.00 $10,000.00
11/30/03 $10,083.56 $10,057.61
12/31/03 $10,362.11 $10,367.53
01/31/04 $10,529.25 $10,546.13
02/29/04 $10,362.11 $10,388.95
03/31/04 $10,139.27 $10,163.24
04/30/04 $9,860.73 $9,902.93
05/31/04 $10,306.40 $10,364.64
06/30/04 $10,640.67 $10,721.56
07/31/04 $9,832.86 $9,901.45
08/31/04 $9,610.03 $9,683.49
09/30/04 $9,888.58 $9,995.40
10/31/04 $10,389.97 $10,519.75
11/30/04 $10,974.93 $11,125.34
12/31/04 $11,343.45 $11,481.53
01/31/05 $10,672.91 $10,763.61
02/28/05 $10,617.02 $10,711.69
03/31/05 $10,421.44 $10,510.66
04/30/05 $9,974.42 $10,074.94
05/31/05 $10,812.60 $10,946.78
06/30/05 $10,477.33 $10,598.96
07/31/05 $11,231.70 $11,392.37
08/31/05 $11,064.06 $11,234.69
- --------------------------------------------------------------------------------
6
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND 8/31/2005
Percentage
of Total
Security Description Value Investment
- ------------------------------------------------------------------------------------------------------------------------------------
1 SACRAMENTO, COUNTY OF Series A $2,024,383 3.6%
2 CALIFORNIA COMMUNITY COLLEGE FINANCING AUTHORITY Series A 2,022,316 3.6%
3 CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds; Series C-8 2,000,000 3.6%
4 CALIFORNIA, STATE OF General Obligation Bonds; Series 2003C-1 2,000,000 3.6%
5 CHINO BASIN REGIONAL FINANCING AUTHORITY Inland Empire Utilities Agency; Series 2002A 2,000,000 3.6%
6 KERN, COUNTY OF Tax revenue Refunding Bonds; 1993 Series A 2,000,000 3.6%
7 ORANGE COUNTY WATER DISTRICT Certificates of Participation; Series A 2,000,000 3.6%
8 RIVERSIDE, COUNTY OF Community Facilities District 89-5, Special Tax 2,000,000 3.6%
9 WILLIAM S. HART UNION HIGH SCHOOL DISTRICT School Facility Bridge Funding Program 2,000,000 3.6%
10 CAPITAL ASSET LEASING CORP Certificates of Participation 2,000,000 3.6%
11 EAST BAY MUNICIPAL UTILITY DISTRICT Certificates of Participation 2,000,000 3.6%
12 UNIVERSITY OF CALIFORNIA BOARD OF REGENTS Commercial Paper Notes; Series A 2,000,000 3.6%
[Bar Chart]
Variable Rate Demand Notes 72.2%
Tax and Revenue Anticipation Notes 16.7%
Commercial Paper 10.8%
Other Net Assets 0.3%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
- --------------------------------------------------------------------------------------------------------------------
Beginning
DIRECT SHARES Account Value Ending Account Value Expenses
March 1, 2005 August 31, 2005 Paid During Period*
- --------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,009 $2.68
- --------------------------------------------------------------------------------------------------------------------
Based on Hypothetical 5% Return before expenses $1,000 $1,023 $2.70
- --------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (0.53%) for the fiscal
year, multiplied by the average account value over the period, multiplied
by the number of days in the most recent fiscal half-year, then divided by
365.
7
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA INSURED INTERMEDIATE FUND 8/31/2005
Percentage
of Total
Security Description Value Investment
- ------------------------------------------------------------------------------------------------------------------------------------
1 MONTEREY, COUNTY OF Certificates of Participation $659,862 3.0%
2 CALIFORNIA STATE ECONOMIC RECOVERY General Obligation; Series A 655,026 3.0%
3 IMPERIAL IRRIGATION DISTRICT Certificates of Participation; 1997 Capital Projects 648,456 3.0%
4 OAK PARK UNIFIED SCHOOL DISTRICT General Obligation, Refunding Bonds 623,052 2.9%
5 EASTERN MUNICIPAL WATER DISTRICT Certificates of Participation; Series A 605,847 2.8%
6 FRESNO, CITY OF Water System Revenue Refunding; Series A 571,925 2.6%
7 CASTAIC LAKE WATER AGENCY Water System Improvement Projects; Series 2001A 571,570 2.6%
8 SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY San Juan Power Project 2002 Refunding; Series A 566,580 2.6%
9 FOOTHILL-DE ANZA COMMUNITY COLLEGE DISTRICT General Obligation Refunding Bonds 20025 566,360 2.6%
10 OAKLAND JOINT POWERS FINANCING AUTHORITY Convention Centers; Series 2001 565,085 2.6%
[Bar Chart]
Long Term Securities 96.5%
Variable Rate Demand Notes 2.2%
Other Net Assets 1.3%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
- ------------------------------------------------------------------------------------------------------------------------
Beginning
DIRECT SHARES Account Value Ending Account Value Expenses
March 1, 2005 August 31, 2005 Paid During Period*
- ------------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,011 $3.45
- ------------------------------------------------------------------------------------------------------------------------
Based on Hypothetical 5% Return before expenses $1,000 $1,022 $3.47
- ------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (0.68%) for the fiscal
year, multiplied by the average account value over the period, multiplied
by the number of days in the most recent fiscal half-year, then divided by
365.
8
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE INCOME FUND 8/31/2005
Percentage
of Total
Security Description Value Investment
- ------------------------------------------------------------------------------------------------------------------------------------
1 CALIFORNIA STATE PUBLIC WORKS BOARD University of California Projects; 1993 Series A $5,619,700 4.0%
2 SANTA CLARA REDEVELOPMENT AGENCY Bayshore North Project, 1992 Tax Allocation Refunding Bonds 4,439,840 3.1%
3 SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY Multiple Project Revenue Bonds; Series 1989 4,276,726 3.0%
4 CALIFORNIA, STATE OF General Obligation Bonds; 2005 4,255,160 3.0%
5 LOS ANGELES COMMUNITIES REDEVLOPMENT AGENCY Bunker Hill Project; Series A 4,252,400 3.0%
6 CALIFORNIA DEPARTMENT OF WATER RESOURCES Power Supply Revenue Bonds; Series B5 4,200,000 3.0%
7 LOS ANGELES COUNTY TRANSPORTATION COMMISSION Sales Tax Revenue Refunding Bonds, 1991; Series B 3,941,932 2.8%
8 SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT Sales Tax Revenue Refunding Bonds; Series 1990 3,491,030 2.5%
9 SAN MARINO UNIFIED SCHOOL DISTRICT General Obligation Bonds 3,412,920 2.4%
10 CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY Stanford University Revenue Bonds; Series P 3,408,450 2.4%
[Bar Chart]
Long Term Securities 91.1%
Variable Rate Demand Notes 5.6%
Other Net Assets 3.3%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of
the Fund you incur ongoing costs, including management fees, distribution
fees and other Fund expenses. Operating expenses, which are deducted
from the Fund's gross income, directly reduce the investment return of the
Fund.
A fund's expenses are expressed as a percentage of its average net assets.
This figure is known as the expense ratio. The following examples are
intended to help you understand the ongoing costs (in dollars) of investing
the Fund and to compare these costs with the ongoing costs of investing in
other mutual funds. The examples below are based on an investment of
$1,000 made at the beginning of the period shown and held for the entire
period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
- ---------------------------------------------------------------------------------------------------------------------
Beginning
DIRECT SHARES Account Value Ending Account Value Expenses
March 1, 2005 August 31, 2005 Paid During Period*
- ---------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,020 $3.56
- ---------------------------------------------------------------------------------------------------------------------
Based on Hypothetical 5% Return before expenses $1,000 $1,021 $3.57
- ---------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (0.70%) for the fiscal
year, multiplied by the average account value over the period, multiplied
by the number of days in the most recent fiscal half-year, then divided by
365.
9
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES FUND 8/31/2005
Percentage
of Total
Security Description Maturity Value Investment
- ------------------------------------------------------------------------------------------------------------------------------------
1 United States Treasury Bonds 11/15/2022 $2,802,970 10.1%
2 Government National Mortgage Association 12/20/2034 2,711,992 9.8%
3 United States Treasury Bonds 11/15/2028 2,273,438 8.2%
4 Government National Mortgage Association 02/15/2019 1,787,725 6.5%
5 Government National Mortgage Association 07/15/2020 1,735,658 6.3%
6 United States Treasury Bonds 05/15/2016 1,650,442 6.0%
7 Government National Mortgage Association 01/15/2019 1,612,124 5.8%
8 Government National Mortgage Association 09/15/2018 1,598,777 5.8%
9 United States Treasury Bills 10/06/2005 1,595,064 5.8%
10 Government National Mortgage Association 02/15/2019 1,487,837 5.4%
[Bar Chart]
Government National Mortgage Assoc. 55.9%
United States Treasury Bills 15.6%
United States Tresury Bonds 22.9%
Other Net Assets 5.6%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
--------------------------------------------------------------------------------------------------
DIRECT SHARES K SHARES
--------------------------------------------------------------------------------------------------
Beginning Ending Account Expenses Beginning Ending Account Expenses
Account Value Value Paid During Account Value Value Paid During
March 1, 2005 August 31, 2005 Period* March 1, 2005 August 31, 2005 Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,026 $3.78 $1,000 $1,023 $6.32
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Hypothetical
5% Return before expenses $1,000 $1,021 $3.77 $1,000 $1,019 $6.31
- ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (Direct Shares 0.74%; K
Shares 1.24%) for the fiscal year, multiplied by the average account value
over the period, multiplied by the number of days in the most recent
fiscal half-year, then divided by 365.
10
- --------------------------------------------------------------------------------
THE UNITED STATES TREASURY TRUST 8/31/2005
Percentage
of Total
Security Description Maturity Value Investment
- --------------------------------------------------------------------------------
1 United States Treasury Bills 09/15/2005 $11,885,866 30.1%
2 United States Treasury Bills 10/06/2005 9,716,699 24.6%
3 United States Treasury Bills 10/27/2005 7,562,970 19.1%
4 United States Treasury Bills 11/17/2005 5,559,000 14.1%
5 United States Treasury Bills 12/01/2005 4,761,962 12.1%
[Bar Chart]
United States Treasury Bills 100.2%
Other Liabilities -0.2%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
--------------------------------------------------------------------------------------------------
DIRECT SHARES K SHARES
--------------------------------------------------------------------------------------------------
Beginning Ending Account Expenses Beginning Ending Account Expenses
Account Value Value Paid During Account Value Value Paid During
March 1, 2005 August 31, 2005 Period* March 1, 2005 August 31, 2005 Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,010 $2.69 $1,000 $1,008 $5.21
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Hypothetical
5% Return before expenses $1,000 $1,023 $2.70 $1,000 $1,020 $5.24
- ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (Direct Shares 0.53%; K
Shares 1.03%) for the fiscal year, multiplied by the average account value
over the period, multiplied by the number of days in the most recent
fiscal half-year, then divided by 365.
11
- --------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT BOND FUND 8/31/2005
Percentage
of Total
Security Description Maturity Value Investment
- --------------------------------------------------------------------------------
1 United States Treasury Notes 10/15/06 $ 2,368,013 14.4%
2 United States Treasury Notes 11/15/06 1,874,322 11.4%
3 United States Treasury Notes 05/15/08 1,596,563 9.7%
4 United States Treasury Notes 05/15/07 1,582,064 9.6%
5 United States Treasury Notes 08/15/07 1,470,060 8.9%
6 United States Treasury Notes 02/28/07 1,291,876 7.9%
7 United States Treasury Notes 02/15/07 1,173,938 7.1%
8 United States Treasury Notes 02/15/08 980,938 6.0%
9 Government National Mortgage Association 11/20/34 880,637 5.4%
10 United States Treasury Notes 12/31/06 791,688 4.8%
[Bar Chart]
Government National Mortgage Assoc. 9.9%
United States Treasury Bills 4.2%
United States Tresury Notes 84.9%
Other Net Assets 1.0%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
--------------------------------------------------------------------------------------------------
DIRECT SHARES K SHARES
--------------------------------------------------------------------------------------------------
Beginning Ending Account Expenses Beginning Ending Account Expenses
Account Value Value Paid During Account Value Value Paid During
March 1, 2005 August 31, 2005 Period* March 1, 2005 August 31, 2005 Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,012 $2.99 $1,000 $1,009 $5.52
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Hypothetical
5% Return before expenses $1,000 $1,022 $3.01 $1,000 $1,020 $5.55
- ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (Direct Shares 0.59%; K
Shares 1.09%) for the fiscal year, multiplied by the average account value
over the period, multiplied by the number of days in the most recent
fiscal half-year, then divided by 365.
12
- --------------------------------------------------------------------------------
S&P 500 INDEX FUND 8/31/2005
Percentage of
Security Value Total Investment
- --------------------------------------------------------------------------------
1 Exxon Mobil Corp $ 3,541,887 3.3%
2 General Electric Co 3,309,543 3.1%
3 Microsoft Corp 2,555,927 2.4%
4 Citigroup Inc 2,114,572 2.0%
5 Pfizer Inc 1,758,754 1.6%
6 Johnson & Johnson 1,750,515 1.6%
7 Bank of America Corp 1,606,310 1.5%
8 Intel Corp 1,473,473 1.4%
9 American International Group Inc 1,426,483 1.3%
10 Wal-Mart Stores Inc 1,396,907 1.3%
[Bar Chart]
S&P 500 CIT
----- ---
Basic Materials 2.6% 2.7%
Communications 10.6% 10.6%
Consumer Cyclical 9.1% 9.2%
Consumer Non-Cyclical 21.5% 21.9%
Energy 9.6% 9.5%
Financial 20.2% 19.7%
Industrial 11.1% 11.1%
Technology 11.8% 11.9%
Utility 3.5% 3.4%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
--------------------------------------------------------------------------------------------------
DIRECT SHARES K SHARES
--------------------------------------------------------------------------------------------------
Beginning Ending Account Expenses Beginning Ending Account Expenses
Account Value Value Paid During Account Value Value Paid During
March 1, 2005 August 31, 2005 Period* March 1, 2005 August 31, 2005 Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,022 $1.83 $1,000 $1,019 $4.38
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Hypothetical
5% Return before expenses $1,000 $1,023 $1.84 $1,000 $1,021 $4.38
- ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (Direct Shares 0.36%; K
Shares 0.86%) for the fiscal year, multiplied by the average account value
over the period, multiplied by the number of days in the most recent
fiscal half-year, then divided by 365.
13
- --------------------------------------------------------------------------------
S&P MIDCAP INDEX FUND 8/31/2005
Percentage of
Security Value Total Investment
- --------------------------------------------------------------------------------
1 Legg Mason Inc $ 1,698,194 1.0%
2 Lennar Corp 1,350,737 0.8%
3 Peabody Energy Corp 1,290,060 0.8%
4 Whole Foods Market Inc 1,250,203 0.8%
5 Noble Energy Inc 1,151,020 0.7%
6 Smith International Inc 1,105,427 0.7%
7 Pioneer Natural Resources Co 1,073,462 0.7%
8 SanDisk Corp 1,053,691 0.6%
9 Fidelity National Financial Inc 1,021,071 0.6%
10 Harman International Industries Inc 998,741 0.6%
[Bar Chart]
S&P 400 CIT
----- ---
Basic Materials 3.7% 3.7%
Communications 5.4% 5.4%
Consumer Cyclical 16.0% 16.1%
Consumer Non-Cyclical 19.1% 19.1%
Diversified 0.4% 0.4%
Energy 9.5% 9.4%
Financial 17.1% 17.1%
Industrial 12.2% 12.3%
Technology 10.2% 10.2%
Utility 6.5% 6.4%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
-----------------------------------------------------------------------------------------------------
DIRECT SHARES K SHARES
-----------------------------------------------------------------------------------------------------
Beginning Ending Account Expenses Beginning Ending Account Expenses
Account Value Value Paid During Account Value Value Paid During
March 1, 2005 August 31, 2005 Period* March 1, 2005 August 31, 2005 Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,070 $3.03 $1,000 $1,067 $5.63
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Hypothetical
5% Return before expenses $1,000 $1,022 $2.96 $1,000 $1,020 $5.50
- ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (Direct Shares 0.58%; K
Shares 1.08%) for the fiscal year, multiplied by the average account value
over the period, multiplied by the number of days in the most recent
fiscal half-year, then divided by 365.
14
- --------------------------------------------------------------------------------
S&P SMALLCAP INDEX FUND 8/31/2005
Percentage of
Security Value Total Investment
- --------------------------------------------------------------------------------
1 Southwestern Energy Co $ 225,926 0.7%
2 NVR Inc 212,400 0.7%
3 Massey Energy Co 197,815 0.7%
4 Cimarex Energy Co 184,765 0.6%
5 Roper Industries Inc 177,500 0.6%
6 Florida Rock Industries Inc 165,725 0.5%
7 Cooper Cos Inc/The 162,922 0.5%
8 Pharmaceutical Product Development Inc 162,339 0.5%
9 Oshkosh Truck Corp 161,162 0.5%
10 Standard-Pacific Corp 153,316 0.5%
[Bar Chart]
S&P 600 CIT
----- ---
Basic Materials 3.2% 3.1%
Communications 2.9% 2.8%
Consumer Cyclical 19.4% 19.5%
Consumer Non-Cyclical 18.4% 18.2%
Energy 8.6% 8.7%
Financial 14.7% 14.7%
Industrial 19.1% 19.5%
Technology 9.2% 9.1%
Utility 4.5% 4.4%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
-----------------------------------------------------------------------------------------------------
DIRECT SHARES K SHARES
-----------------------------------------------------------------------------------------------------
Beginning Ending Account Expenses Beginning Ending Account Expenses
Account Value Value Paid During Account Value Value Paid During
March 1, 2005 August 31, 2005 Period* March 1, 2005 August 31, 2005 Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,057 $3.84 $1,000 $1,049 $6.40
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Hypothetical
5% Return before expenses $1,000 $1,021 $3.77 $1,000 $1,019 $6.31
- ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (Direct Shares 0.74%; K
Shares 1.24%) for the fiscal year, multiplied by the average account value
over the period, multiplied by the number of days in the most recent
fiscal half-year, then divided by 365.
15
- --------------------------------------------------------------------------------
EQUITY INCOME FUND 8/31/2005
Percentage of
Security Value Total Investment
- --------------------------------------------------------------------------------
1 McGraw-Hill Cos Inc/The $514,893 2.6%
2 Wells Fargo & Co 494,667 2.5%
3 ConocoPhillips 484,527 2.4%
4 Citigroup Inc 455,689 2.3%
5 Bank of America Corp 424,448 2.1%
6 Baxter International Inc 419,876 2.1%
7 McDonald's Corp 401,342 2.0%
8 Ford Motor Co 399,797 2.0%
9 Exxon Mobil Corp 373,536 1.9%
10 Lowe's Cos Inc 369,783 1.9%
[Bar Chart]
S&P BARRA/Value CIT
----- ---
Basic Materials 3.8% 3.4%
Communications 13.9% 4.4%
Consumer Cyclical 7.2% 12.2%
Consumer Non-Cyclical 9.8% 17.6%
Energy 9.4% 14.1%
Financial 36.0% 27.1%
Industrial 8.6% 5.5%
Technology 5.1% 9.5%
Utility 6.2% 6.2%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month. charge transaction fees,
such as purchase or redemption fees, nor does it carry a "sales load."
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
--------------------------------------------------------------------------------------------------
DIRECT SHARES K SHARES
--------------------------------------------------------------------------------------------------
Beginning Ending Account Expenses Beginning Ending Account Expenses
Account Value Value Paid During Account Value Value Paid During
March 1, 2005 August 31, 2005 Period* March 1, 2005 August 31, 2005 Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,035 $4.57 $1,000 $1,033 $7.12
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Hypothetical
5% Return before expenses $1,000 $1,021 $4.53 $1,000 $1,018 $7.07
- ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (Direct Shares 0.89%; K
Shares 1.39%) for the fiscal year, multiplied by the average account value
over the period, multiplied by the number of days in the most recent
fiscal half-year, then divided by 365.
16
- --------------------------------------------------------------------------------
EUROPEAN GROWTH & INCOME FUND 8/31/2005
Percentage of
Security Value Total Investment
- --------------------------------------------------------------------------------
1 BP PLC ADR $559,075 7.0%
2 HSBC Holdings PLC ADR 424,329 5.3%
3 Vodafone Group PLC ADR 403,573 5.1%
4 Total SA ADR 379,567 4.8%
5 Royal Dutch Shell PLC ADR 332,595 4.2%
6 GlaxoSmithKline PLC ADR 330,711 4.1%
7 Barclays PLC ADR 308,335 3.9%
8 Novartis AG ADR 305,029 3.8%
9 Roche Holding AG ADR 242,077 3.0%
10 Nestle SA ADR 242,030 3.0%
[Bar Chart]
DJ STOXX 50 CIT
----- ---
Basic Materials 2.2% 1.9%
Communications 14.0% 16.9%
Consumer Cyclical 1.3% 1.2%
Consumer Non-Cyclical 19.7% 20.8%
Energy 18.1% 21.7%
Financial 34.7% 30.5%
Industrial 3.9% 3.1%
Technology 1.9% 1.0%
Utility 4.2% 2.9%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month. charge transaction fees,
such as purchase or redemption fees, nor does it carry a "sales load."
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
---------------------------------------------------------------------------------------------------
DIRECT SHARES K SHARES
---------------------------------------------------------------------------------------------------
Beginning Ending Account Expenses Beginning Ending Account Expenses
Account Value Value Paid During Account Value Value Paid During
March 1, 2005 August 31, 2005 Period* March 1, 2005 August 31, 2005 Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,025 $5.10 $1,000 $1,023 $7.65
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Hypothetical
5% Return before expenses $1,000 $1,020 $5.09 $1,000 $1,018 $7.63
- ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (Direct Shares 1.00%; K
Shares 1.50%) for the fiscal year, multiplied by the average account value
over the period, multiplied by the number of days in the most recent
fiscal half-year, then divided by 365.
17
- --------------------------------------------------------------------------------
NASDAQ-100 INDEX FUND 8/31/2005
Percentage of
Security Value Total Investment
- --------------------------------------------------------------------------------
1 Microsoft Corp $ 1,450,063 7.8%
2 Qualcomm Inc 1,114,580 6.0%
3 Intel Corp 791,456 4.3%
4 Apple Computer Inc 764,959 4.1%
5 Amgen Inc 647,270 3.5%
6 eBay Inc 580,303 3.1%
7 Cisco Systems Inc 571,258 3.1%
8 Dell Inc 450,660 2.4%
9 Comcast Corp 415,648 2.2%
10 Oracle Corp 395,922 2.1%
[Bar Chart]
Nasdaq 100 CIT
----- ---
Basic Materials 0.5% 0.5%
Communications 27.0% 27.1%
Consumer Cyclical 10.4% 10.5%
Consumer Non-Cyclical 17.9% 17.8%
Industrial 2.8% 2.7%
Technology 41.4% 41.4%
About Your Fund's Expenses (Unaudited)
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
Fund you incur ongoing costs, including management fees, distribution fees and
other Fund expenses. Operating expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period.
The table below illustrates the Fund's costs in two ways:
Actual fund return- This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from the
Fund's actual return, and the third column shows the dollar amount that would
have been paid by an investor who started with $1,000 in the Fund. You may use
the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Fund under the heading "Expenses Paid During Period."
Hypothetical 5% return- This section is intended to help you compare the Fund's
costs with those of other mutual funds. It assumes that the Fund had a return of
5% before expenses during the period shown, but that the expense ratio is
unchanged. In this case, because the return used is not the Fund's actual
return, the results do not apply to your investment. The example is useful in
making comparisons because the Securities and exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess the
Fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Fund does not carry a "sales load", nor does it
charge redemption fees on shares held over one month. charge transaction fees,
such as purchase or redemption fees, nor does it carry a "sales load."
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
More information about the Fund's expenses, including annual expense ratios
since inception, can be found in this report. For additional information on
operating expenses and other shareholder costs, please refer to the Fund's
prospectus.
---------------------------------------------------------------------------------------------------
DIRECT SHARES K SHARES
---------------------------------------------------------------------------------------------------
Beginning Ending Account Expenses Beginning Ending Account Expenses
Account Value Value Paid During Account Value Value Paid During
March 1, 2005 August 31, 2005 Period* March 1, 2005 August 31, 2005 Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000 $1,045 $3.81 $1,000 $1,042 $6.38
- ------------------------------------------------------------------------------------------------------------------------------------
Based on Hypothetical
5% Return before expenses $1,000 $1,021 $3.77 $1,000 $1,019 $6.31
- ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's expense ratio (Direct Shares 0.74%; K
Shares 1.24%) for the fiscal year, multiplied by the average account value
over the period, multiplied by the number of days in the most recent
fiscal half-year, then divided by 365.
18
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE PORTFOLIO OF INVESTMENTS 8/31/2005
MONEY MARKET FUND
Security Description Par Value Rate Maturity Value (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES* (72.16%)
ABAG FINANCIAL AUTHORITY FOR NON-PROFIT CORPS
Revenue Bonds $ 1,500,000 2.350% 09/01/05 $ 1,500,000
CALIFORNIA DEPARTMENT OF WATER RESOURCES
Power Supply Revenue Bonds; Series 2002B6 100,000 2.240% 09/01/05 100,000
Power Supply Revenue Bonds; Series C-8 2,000,000 2.300% 09/01/05 2,000,000
CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY
Sutter Hospital; Series B 950,000 2.230% 09/01/05 950,000
CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK
Rand Corportation; Series B 500,000 1.060% 09/01/05 500,000
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
Certificates of Participation; John Muir / Mt. Diablo Health 900,000 2.200% 09/01/05 900,000
Certificates of Participation; Sutter Health Group 400,000 2.240% 09/01/05 400,000
Gemological Institute of America; Special Tax; Series 2001 1,800,000 2.280% 09/01/05 1,800,000
CALIFORNIA, STATE OF
General Obligation Bonds; Series 2003C-1 2,000,000 2.350% 09/01/05 2,000,000
CHINO BASIN REGIONAL FINANCING AUTHORITY
Inland Empire Utilities Agency; Series 2002A 2,000,000 2.300% 09/07/05 2,000,000
EASTERN MUNICIPAL WATER DISTRICT
Certificates of Participation; Series B 1,500,000 2.340% 09/01/05 1,500,000
IRVINE RANCH WATER DISTRICT
Certificates of Participation, 1986 Capital Improvement Projects 500,000 2.250% 09/01/05 500,000
Sewer Bonds; 1988 Series A; District 282 500,000 2.250% 09/01/05 500,000
Waterworks Bonds; 1988 Series A, District 182 500,000 2.250% 09/01/05 500,000
IRVINE UNIFIED SCHOOL DISTRICT
Community Facilities District No. 01-01; Series 2003 400,000 1.000% 09/01/05 400,000
IRVINE, CITY OF
Assessment District 87-8 700,000 2.200% 09/01/05 700,000
Assessment District 89-10 100,000 2.290% 09/01/05 100,000
KERN, COUNTY OF
Tax revenue Refunding Bonds; 1993 Series A 2,000,000 2.340% 09/01/05 2,000,000
LOS ANGELES COUNTY TRANSPORTATION COMMISSION
Sales Tax Revenue Refunding Bonds, 1992; Series A 1,000,000 2.300% 09/07/05 1,000,000
LOS ANGELES DEPARTMENT OF WATER AND POWER
Water System Revenue Bonds; 2001 Series B-2 600,000 2.240% 09/01/05 600,000
LOS ANGELES, COUNTY OF
Pension Obligation Refunding Bonds 1,400,000 2.300% 09/07/05 1,400,000
Rowland Heights Preservation 1,400,000 1.280% 09/07/05 1,400,000
METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA
Water Revenue Bonds, Series 2000 B-1 200,000 2.240% 09/01/05 200,000
Water Revenue Refunding Bonds; 1996 Series A 1,885,000 2.340% 09/01/05 1,885,000
NEWPORT BEACH, CITY OF
Hoag Memorial Hospital Presbyterian, Series 1996 Series B 400,000 2.220% 09/01/05 400,000
Hoag Memorial Hospital Presbyterian; Series C 400,000 2.250% 09/01/05 400,000
ORANGE COUNTY HOUSING AUTHORITY
Revenue Bonds, Village Niguel, Issue AA of 1985 1,900,000 2.300% 09/07/05 1,900,000
ORANGE COUNTY SANITATION DISTRICT
Certificates of Participation; Series 2000 600,000 2.240% 09/01/05 600,000
Certificates of Participation; Series 2000-A 600,000 2.240% 09/01/05 600,000
Refunding Certificates of Participation; Series 1993 600,000 2.240% 09/01/05 600,000
ORANGE COUNTY WATER DISTRICT
Certificates of Participation; Series A 2,000,000 1.000% 09/07/05 2,000,000
RIVERSIDE, COUNTY OF
Community Facilities District 89-5, Special Tax 2,000,000 2.370% 09/07/05 2,000,000
SAN FRANCISCO CITY & COUNTY FINANCE CORP
Moscone Center Expansion Project; Series 2000-3 1,900,000 2.290% 09/01/05 1,900,000
SANTA ANA HOUSING AUTHORITY
Harbor Pointe Apartments; 1995 Series A 1,720,000 2.330% 09/01/05 1,720,000
TUSTIN, CITY OF
Reassessment District No. 95-2; Series A 600,000 2.240% 09/01/05 600,000
WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER AUTHORITY
Variable Rate Revenue Bonds, 1996 700,000 2.240% 09/01/05 700,000
WILLIAM S. HART UNION HIGH SCHOOL DISTRICT
School Facility Bridge Funding Program 2,000,000 2.340% 09/01/05 2,000,000
------------
Total Variable Rate Demand Notes (Cost $ 40,255,000) 40,255,000
------------
TAX AND REVENUE ANTICIPATION NOTES (16.74%)
CALIFORNIA COMMUNITY COLLEGE FINANCING AUTHORITY
Series A 2,000,000 4.000% 06/30/06 2,022,316
19
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE PORTFOLIO OF INVESTMENTS 8/31/2005
MONEY MARKET FUND CONTINUED
Security Description Par Value Rate Maturity Value (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK
J Paul Getty Trust; Series B $ 1,500,000 2.250% 02/02/06 $ 1,500,000
CALIFORNIA SCHOOL CASH RESERVE PROGRAM FINANCING AUTHORITY
Series A 1,750,000 4.000% 07/06/06 1,770,142
LOS ANGELES, COUNTY OF
Series A 1,000,000 4.000% 06/30/06 1,011,773
SACRAMENTO, COUNTY OF
Series A 2,000,000 4.000% 07/10/06 2,024,383
SAN DIEGO COUNTY AND SCHOOL DISTRICT
Series B 1,000,000 4.000% 07/14/06 1,011,065
------------
Total Tax and Revenue Anticipation Notes (Cost $9,339,679) 9,339,679
------------
COMMERCIAL PAPER (10.76%)
CAPITAL ASSET LEASING CORP
Certificates of Participation 2,000,000 2.500% 09/01/05 2,000,000
EAST BAY MUNICIPAL UTILITY DISTRICT
Certificates of Participation 2,000,000 2.370% 09/01/05 2,000,000
UNIVERSITY OF CALIFORNIA BOARD OF REGENTS
Commercial Paper Notes; Series A 2,000,000 2.500% 09/14/05 2,000,000
------------
Total Commercial Paper (Cost $6,000,000) 6,000,000
------------
Total Investments (Cost $55,594,679) (a) (99.66%) 55,594,679
Other Net Assets (0.34%) 190,175
------------
Net Assets (100.00%) $ 55,784,854
============
(a) Aggregate cost for federal income tax purposes is $55,594,679.
* Stated maturity reflects next reset date.
See accompanying notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA INSURED PORTFOLIO OF INVESTMENTS 8/31/2005
INTERMEDIATE FUND
Security Description Par Value Rate Maturity Value (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM SECURITIES (96.49%)
ANAHEIM PUBLIC FINANCIAL AUTHORITY
Convention Center Project; Series A $ 500,000 5.250% 08/01/13 $ 555,955
BEVERLY HILLS PUBLIC FINANCIAL AUTHORITY
Lease Revenue Refunding; Series A 500,000 5.250% 06/01/13 560,540
CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY
University of San Francisco Revenue Bonds; Series 1996 500,000 5.600% 10/01/10 556,865
CALIFORNIA STATE ECONOMIC RECOVERY
General Obligation; Series A 600,000 5.000% 07/01/11 655,026
CALIFORNIA STATE PUBLIC WORKS BOARD
CA State Prison -- Lassen County; 2001 Series A 400,000 5.250% 06/01/11 441,256
Lease Revenue Refunding Bonds; 2001 Series A 500,000 5.250% 06/01/12 556,140
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
Revenue Anticipation Notes; Series 2005 A-C 500,000 4.000% 11/15/06 506,585
CALIFORNIA, STATE OF
General Obligation Bonds; 1996 500,000 5.200% 06/01/07 519,870
CASTAIC LAKE WATER AGENCY
Water System Improvement Projects; Series 1994A 300,000 7.250% 08/01/09 344,595
Water System Improvement Projects; Series 2001A 500,000 6.000% 08/01/12 571,570
CENTRAL VALLEY SCHOOL DISTRICTS FINANCING AUTHORITY
General Obligation Refi. Bonds; Series C 400,000 6.150% 02/01/09 439,948
CHAFFEY UNION HIGH SCHOOL DISTRICT
General Obligation Bonds; Series C 500,000 5.000% 05/01/12 549,845
CHICO UNIFIED SCHOOL DISTRICT
General Obligation Refunding Bonds 400,000 8.500% 08/01/07 441,160
EASTERN MUNICIPAL WATER DISTRICT
Certificates of Participation; Series A 550,000 5.250% 07/01/12 605,847
FOOTHILL-DE ANZA COMMUNITY COLLEGE DISTRICT
General Obligation Refunding Bonds 20025 500,000 5.500% 08/01/12 566,360
FRESNO, CITY OF
Water System Revenue Refunding; Series A 500,000 6.000% 06/01/11 571,925
IMPERIAL IRRIGATION DISTRICT
Certificates of Participation; 1997 Capital Projects 600,000 5.200% 11/01/09 648,456
INDUSTRY CITY URBAN DEVELOPMENT AGENCY
2002 Tax Allocation; Refunding, Project 1 300,000 5.375% 05/01/12 313,386
LOS ANGELES , CITY OF
Sanitation Equipment Charge Revenue Bonds; Series 2001-A 500,000 5.000% 02/01/08 524,600
20
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA INSURED PORTFOLIO OF INVESTMENTS 8/31/2005
INTERMEDIATE FUND CONTINUED
Security Description Par Value Rate Maturity Value (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY
Sales Tax Revenue Bonds; Series A $ 500,000 5.500% 07/01/08 $ 534,815
LOS ANGELES DEPARTMENT OF WATER AND POWER
Power Project Revenue Bond; 2001 Series A 500,000 5.250% 07/01/14 549,380
LOS ANGELES UNIFIED SCHOOL DISTRICT
General Obligation Bonds; 1997 Series A 400,000 6.000% 07/01/07 422,332
LOS ANGELES, COUNTY OF
Pension Obligation Certificates; Series A 400,000 6.900% 06/30/08 441,476
MONTEREY, COUNTY OF
Certificates of Participation 600,000 5.250% 08/01/14 659,862
NORTH ORANGE COUNTY COMMUNITY COLLEGE DISTRICT
2005 General Obligation Refunding Bonds 500,000 5.000% 08/01/14 556,520
General Obligation Bonds; 2002 Series A 500,000 5.000% 08/01/12 551,030
NORWALK COMMUNITY FACILITIES FINANCING AUTHORITY
City Hall Lease Revenue Refunding Bonds; 1999 200,000 5.000% 02/01/09 212,538
OAK PARK UNIFIED SCHOOL DISTRICT
General Obligation, Refunding Bonds 600,000 5.150% 05/01/07 623,052
OAKLAND JOINT POWERS FINANCING AUTHORITY
Convention Centers; Series 2001 500,000 5.500% 10/01/12 565,085
ORANGE COUNTY LOCAL TRANSPORTATION AUTHORITY
Measure M Sales Tax Revenue 2nd Series, Series A 325,000 5.000% 02/15/09 346,346
ORANGE COUNTY LOCAL TRANSPORTATION AUTHORITY
Measure M Sales Tax Revenue Bonds; Series 1998 A 500,000 5.500% 02/15/07 519,300
PASADENA UNIFIED SCHOOL DISTRICT
General Obligation Bonds; Series B 400,000 5.000% 07/01/07 415,460
RANCHO MIRAGE JOINT POWERS FINANCING AUTHORITY
Eisenhower Medical Center; Series 1997A 385,000 5.250% 07/01/12 406,760
SAN BERNARDINO, COUNTY OF
Certificates of Participation; Series 2002 A 500,000 5.000% 07/01/15 553,150
SAN DIEGO PUBLIC FACILITIES FINANCING AUTHORITY
Sewer Revenue Refunding Bonds; Series A 500,000 5.100% 05/15/10 522,285
SAN FRANCISCO AIRPORT COMMISSION
San Francisco International Airport Revenue Second; Series B 450,000 5.500% 05/01/09 480,762
SAN FRANCISCO CITY & COUNTY PUBLIC UTILITIES COMMISSION
Water Revenue Refunding Bonds; Series B 500,000 5.000% 11/01/13 548,050
SAN MATEO COUNTY TRANSIT DISTRICT
Limited Tax Bonds; 1993 Series A 300,000 5.000% 06/01/11 327,861
SANTA CLARA COUNTY FINANCING AUTHORITY
Lease Revenue Bonds; 2000 Series A 400,000 5.500% 05/15/10 440,572
SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
San Juan Power Project 2002 Refunding; Series A 500,000 5.500% 01/01/13 566,580
THE REGENTS OF THE UNIVERSITY OF CALIFORNIA
Multiple Purpose Projects; Series O 500,000 5.750% 09/01/10 560,100
WALNUT, CITY OF
Public Financing Authority Tax Allocation 500,000 5.375% 09/01/13 557,850
------------
Total Long -Term Securities (Cost $20,827,093) 21,291,095
------------
VARIABLE RATE DEMAND NOTES* (2.19%)
CALIFORNIA, STATE OF
General Obligation; Series A 200,000 2.250% 09/01/05 200,000
IRVINE, CITY OF
Assessment District 87-8 84,000 2.200% 09/01/05 84,000
Assessment District 93-14 100,000 2.250% 09/01/05 100,000
NEWPORT BEACH
Hoag Memorial Hospital Presbyterian; Series C 100,000 2.250% 09/01/05 100,000
------------
Total Variable Rate Demand Notes (Cost $484,000) 484,000
------------
Total Investments (Cost $21,311,093) (a) (98.68%) 21,775,095
Other Net Assets (1.32%) 290,824
------------
Net Assets (100.00%) $ 22,065,919
============
(a) Aggregate cost for federal income tax purposes is $21,311,093. At August
31,2005, unrealized appreciation (depreciation) of securities for federal
income tax purposes is as follows:
Unrealized appreciation $ 497,224
Unrealized depreciation (33,222)
------------
Net unrealized appreciation $ 464,002
============
* Stated maturity reflects next reset date.
See accompanying notes to financial statements
21
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE PORTFOLIO OF INVESTMENTS 8/31/2005
INCOME FUND
Security Description Par Value Rate Maturity Value (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG TERM SECURITIES (91.10%)
CALIFORNIA DEPARTMENT OF WATER RESOURCES
Water System Revenue Bonds, Central Valley AC $ 2,500,000 5.000% 12/01/16 $ 2,758,675
Water System Revenue Bonds, Central Valley J-1; Unrefunded 1,695,000 7.000% 12/01/11 2,041,678
Water System Revenue Bonds, Central Valley J-3; Unrefunded 2,070,000 7.000% 12/01/11 2,493,377
CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY
Pomona College Refunding Revenue Bonds; Series 1999 2,500,000 5.250% 01/01/17 2,688,950
Revenue Bonds (Occidental College); Series 2005A 3,165,000 5.000% 10/01/30 3,390,126
Stanford University Revenue Bonds; Series P 3,000,000 5.250% 12/01/13 3,408,450
CALIFORNIA STATE PUBLIC WORKS BOARD
CA State Prison--Imperial County; 1991 Series A 2,500,000 6.500% 09/01/17 2,964,750
University of California Projects; 1993 Series A 5,000,000 5.500% 06/01/14 5,619,700
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
UniHealth America; Certificates of Participation; 1993 Series A 2,160,000 5.500% 10/01/14 2,467,692
CALIFORNIA, STATE OF
Economic Recovery Bonds; Series 2004A & B 2,000,000 5.000% 07/01/16 2,155,860
General Obligation Bonds 3,000,000 6.250% 09/01/12 3,412,920
General Obligation Bonds 2,000,000 5.000% 06/01/07 2,067,860
General Obligation Bonds 2,000,000 5.000% 06/01/33 2,108,780
General Obligation Bonds; 2005 4,000,000 5.000% 05/01/27 4,255,160
CASTAIC LAKE WATER AGENCY
Water System Improvement Projects; Series 1994A 2,090,000 7.250% 08/01/09 2,400,679
CONTRA COSTA WATER DISTRICT
Water Revenue Bonds; Series E 2,000,000 6.250% 10/01/12 2,266,380
CUCAMONGA COUNTY WATER DISTRICT
Water Facilities and Refinancing, 2001 1,080,000 5.000% 09/01/16 1,158,775
EAST BAY MUNICIPAL UTILITY DISTRICT
Water Revenue Refunding Bonds; Series 2001 2,000,000 5.250% 06/01/14 2,195,500
ELSINORE VALLEY MUNICIPAL WATER DISTRICT
Certificates of Participation 1,000,000 6.000% 07/01/12 1,153,340
KERN HIGH SCHOOL DISTRICT
General Obligation Refunding Bonds; 1996 Series A 2,555,000 6.600% 08/01/16 2,976,677
Series General Obligation Refunding Bonds; 2004 Series A 2,890,000 5.000% 08/01/26 3,109,871
LA QUINTA REDEVELOPMENT AGENCY
Redevelopment Project Area No. 2; Series 1994 1,015,000 7.300% 09/01/09 1,171,361
LOS ANGELES COMMUNITIES REDEVLOPMENT AGENCY
Bunker Hill Project; Series A 4,000,000 5.000% 12/01/27 4,252,400
LOS ANGELES CONVENTION & EXHIBIT CENTER AUTHORITY
Lease Revenue Bonds; 1993 Series A 2,500,000 6.000% 08/15/10 2,818,400
LOS ANGELES COUNTY TRANSPORTATION COMMISSION
Sales Tax Revenue Refunding Bonds, 1991; Series B 3,540,000 6.500% 07/01/10 3,941,932
LOS ANGELES DEPARTMENT OF WATER AND POWER
Power System Revenue Bonds; 2001 Series A 2,000,000 5.250% 07/01/15 2,182,020
LOS ANGELES UNIFIED SCHOOL DISTRICT
General Obligation Bonds; 1997 Series A 2,450,000 6.000% 07/01/14 2,909,767
General Obligation Refunding Bonds; Series 2004 A2 500,000 5.000% 07/01/18 545,815
M-S-R PUBLIC POWER AGENCY SAN JUAN PROJECT REVENUE
San Juan Project Refunding Revenue Bonds; Series F 1,500,000 6.125% 07/01/13 1,722,840
NORTHERN CALIFORNIA TRANSMISSION REVENUE
CA-Oregon Transmission Project; 1990 Series A 1,000,000 7.000% 05/01/13 1,203,280
NOVATO UNIFIED SCHOOL DISTRICT
General Obligation bonds; Election 2001; Series 2005 2,000,000 5.000% 08/01/28 2,133,240
OAKLAND REDEVELOPMENT AGENCY
Central District Redevelopment Project; Series 1992 2,000,000 5.500% 02/01/14 2,231,620
Central District Redevelopment Project; Series 2005 1,000,000 5.000% 09/01/22 1,082,610
ORANGE COUNTY LOCAL TRANSPORTATION AUTHORITY
General Obligation Bonds; 1998 Series A 1,050,000 5.500% 02/15/11 1,169,721
RIVERSIDE, COUNTY OF
Leasehold Revenue Bonds; 1997 Series C 1,635,000 5.000% 06/01/08 1,719,301
ROSEVILLE WOODCREEK WEST
Special Tax Refunding; Series 2005 1,000,000 5.000% 09/01/30 1,060,580
22
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE PORTFOLIO OF INVESTMENTS 8/31/2005
INCOME FUND CONTINUED
Security Description Par Value Rate Maturity Value (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
SADDLEBACK VALLEY UNIFIED SCHOOL DISTRICT PUBLIC FIN AUTH
Special Tax Revenue Bonds; 1996 Series A $ 1,575,000 6.000% 09/01/16 $ 1,885,732
SAN BERNARDINO, COUNTY OF
Justice Center / Airport Improvements; Series 2002A 2,890,000 5.000% 07/01/16 3,200,906
SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT
Sales Tax Revenue Refunding Bonds; Series 1990 2,950,000 6.750% 07/01/11 3,491,030
SAN JOSE REDEVELOPMENT AGENCY
Unrefunded Balanced Merged Area 2,685,000 6.000% 08/01/10 3,024,814
SAN MARINO UNIFIED SCHOOL DISTRICT
General Obligation Bonds; 1998 Series B 1,440,000 5.250% 07/01/16 1,640,419
SANTA ANA UNIFIED SCHOOL DISTRICT
General Obligation Bonds; Series 2000 2,500,000 5.700% 08/01/22 2,778,225
SANTA CLARA COUNTY FINANCING AUTHORITY
Lease Revenue Refunding Bonds; 1997 Series A 2,000,000 6.000% 11/15/12 2,323,900
Lease Revenue Refunding Bonds; 1997 Series A 1,750,000 5.750% 11/15/13 2,022,563
SANTA CLARA REDEVELOPMENT AGENCY
Bayshore North Project, 1992 Tax Allocation Refunding Bonds 4,000,000 7.000% 07/01/10 4,439,840
SANTA MARGARITA-DANA POINT AUTHORITY
Improvement District; 1994 Series A 1,045,000 7.250% 08/01/10 1,234,793
SONOMA, COUNTY OF
Certificates of Participation; 2002 Series A 1,815,000 5.000% 11/15/12 1,991,581
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
Installment Sale Revenue Bonds; Series 1992 2,400,000 6.000% 08/01/11 2,743,560
SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
Multiple Project Revenue Bonds; Series 1989 3,585,000 6.750% 07/01/13 4,276,726
Water System Revenue Bonds, 2005 Series A 2,000,000 5.000% 03/01/16 2,216,800
THE REGENTS OF THE UNIVERSITY OF CALIFORNIA
UC San Diego Medical Center; Series 2000 2,500,000 5.125% 12/01/16 2,719,024
TURLOCK IRRIGATION DISTRICT
Revenue Refunding Bonds; Series A 2,000,000 6.250% 01/01/12 2,251,220
------------
Total Long-Term Securities (Cost $119,050,906) 129,481,220
------------
VARIABLE RATE DEMAND NOTES* (5.56%)
CALIFORNIA DEPARTMENT OF WATER RESOURCES
Power Supply Revenue Bonds; Series 2002B6 100,000 2.240% 09/01/05 100,000
Power Supply Revenue Bonds; Series B5 4,200,000 2.250% 09/01/05 4,200,000
CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY
Sutter Hospital; Series B 550,000 2.230% 09/01/05 550,000
CALIFORNIA, STATE OF
General Obligation; Series A 600,000 2.250% 09/01/05 600,000
IRVINE RANCH WATER DISTRICT
General Obligation; Consolidated Series 1993 100,000 2.240% 09/01/05 100,000
NEWPORT BEACH, CITY OF
Hoag Memorial Hospital Presbyterian, Series 1996 Series B 700,000 2.220% 09/01/05 700,000
Hoag Memorial Hospital Presbyterian; Series 1996 Series A 300,000 2.250% 09/01/05 300,000
Hoag Memorial Hospital Presbyterian; Series C 1,350,000 2.250% 09/01/05 1,350,000
------------
Total Variable Rate Demand Notes (Cost $7,900,000) 7,900,000
------------
Total Investments (Cost $126,950,906) (a) (96.66%) 137,381,220
Other Net Assets (3.34%) 4,743,635
------------
Net Assets (100.00%) $142,124,855
============
(a) Aggregate cost for federal income tax purposes is $126,724,628. At August
31, 2005, unrealized appreciation (depreciation) of securities for federal
income tax purposes is as follows:
Unrealized appreciation $ 10,682,327
Unrealized depreciation (25,735)
------------
Net unrealized appreciation $ 10,656,592
============
* Stated maturity reflects next reset date
See accompanying notes to financial statements
23
- -----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT PORTFOLIO OF INVESTMENTS 8/31/2005
SECURITIES FUND
Par Value Rate Maturity Value (Note 1)
- -----------------------------------------------------------------------------------------------------------------------
Government National Mortgage Association (55.93%)
$ 163,983 6.000% 04/15/14 $170,247
260,737 6.000% 04/15/14 270,698
215,420 6.000% 04/15/16 223,563
272,478 6.500% 04/15/16 284,221
272,355 6.000% 05/15/16 282,650
1,346,742 5.000% 02/15/18 1,370,061
682,463 5.000% 04/15/18 694,279
749,172 5.000% 04/15/18 762,144
1,571,566 5.000% 09/15/18 1,598,777
10,346 10.000% 09/15/18 11,712
31,538 9.000% 10/15/18 34,517
1,585,171 5.000% 01/15/19 1,612,124
1,462,962 5.000% 02/15/19 1,487,837
1,757,837 5.000% 02/15/19 1,787,725
1,706,439 5.000% 07/15/20 1,735,658
1,327,002 5.500% 01/15/25 1,367,997
2,710,672 4.500% 12/20/34 2,711,992
-----------
Total Government National Mortgage Association (Cost $16,504,362) 16,406,202
-----------
United States Treasury Bills (15.62%)
800,000 2.99%-3.32% 09/15/05 799,068
1,600,000 3.06%-3.38% 10/06/05 1,595,064
1,100,000 3.15%-3.44% 10/27/05 1,094,693
1,100,000 3.50% 11/17/05 1,091,946
-----------
Total United States Treasury Bills (Cost $4,580,772) 4,580,771
-----------
United States Treasury Bonds (22.93%)
1,300,000 7.250% 05/15/16 1,650,442
2,000,000 7.625% 11/15/22 2,802,970
2,000,000 5.250% 11/15/28 2,273,439
-----------
Total United States Treasury Bonds (Cost $6,295,354) 6,726,851
-----------
Total Investments (Cost $27,380,488) (a) (94.48%) 27,713,824
Other Net Assets (5.52%) 1,618,451
-----------
Net Assets (100.00%) $29,332,275
===========
(a) Aggregate cost for federal income tax purposes is $27,380,488. At August
31, 2005, unrealized appreciation (depreciation) of securities for federal
income tax purposes is as follows:
Unrealized appreciation $ 493,497
Unrealized depreciation (160,161)
-----------
Net unrealized appreciation $ 333,336
===========
See accompanying notes to financial statements
- -----------------------------------------------------------------------------------------------------------------------
THE UNITED STATES PORTFOLIO OF INVESTMENTS 8/31/2005
TREASURY TRUST
Par Value Rate Maturity Value (Note 1)
- -----------------------------------------------------------------------------------------------------------------------
United States Treasury Bills (100.34%)
$ 11,900,000 2.99%-3.38% 09/15/05 $11,885,866
9,800,000 3.06%-3.39% 10/06/05 9,770,853
7,600,000 3.15%-3.44% 10/27/05 7,562,970
5,600,000 3.50% 11/17/05 5,559,000
4,800,000 3.22%-3.52% 12/01/05 4,761,962
-----------
Total Investments (Cost $39,540,651) (a) (100.34%) 39,540,651
Other Net Assets (-0.34%) (134,840)
-----------
Net Assets (100.00%) $39,405,811
===========
(a) Aggregate cost for federal income tax purposes is $39,540,651.
See accompanying notes to financial statements
24
- -----------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. PORTFOLIO OF INVESTMENTS 8/31/2005
GOVERNMENT BOND FUND
Par Value Rate Maturity Value (Note 1)
- -----------------------------------------------------------------------------------------------------------------------
Government National Mortgage Association (9.89%)
$ 765,756 4.000% 06/20/34 $ 763,938
880,214 4.500% 11/20/34 880,637
-----------
Total Government National Mortgage Association (Cost $1,657,060) 1,644,575
-----------
United States Treasury Bills (4.20%)
300,000 3.02%-3.32% 09/15/05 299,635
200,000 3.06%-3.35% 10/06/05 199,361
200,000 3.25% 10/27/05 199,012
-----------
Total United States Treasury Bills (Cost $698,008) 698,008
-----------
United States Treasury Notes (84.86%)
2,300,000 6.500% 10/15/06 2,368,013
500,000 2.500% 10/31/06 492,793
1,900,000 2.625% 11/15/06 1,874,322
800,000 3.000% 12/31/06 791,688
1,200,000 2.250% 02/15/07 1,173,938
1,300,000 3.375% 02/28/07 1,291,876
1,600,000 3.125% 05/15/07 1,582,064
1,500,000 2.750% 08/15/07 1,470,060
500,000 3.000% 11/15/07 491,485
1,000,000 3.000% 02/15/08 980,938
1,600,000 3.750% 05/15/08 1,596,563
-----------
Total United States Treasury Notes (Cost $14,149,323) 14,113,740
-----------
Total Investments (Cost $16,504,391) (a) (98.95%) 16,456,323
Other Net Assets (1.05%) 174,639
-----------
Net Assets (100.00%) $16,630,962
===========
(a) Aggregate cost for federal income tax purposes is $16,504,391. At August
31, 2005, unrealized appreciation (depreciation) of securities for federal
income tax purposes is as follows:
Unrealized appreciation $ 25,151
Unrealized depreciation (73,219)
-----------
Net unrealized appreciation $ (48,068)
===========
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
S&P 500 INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Common Stock (96.81%)
Basic Materials (2.59%)
Air Products & Chemicals Inc 2,087 $ 115,620
Alcoa Inc 8,134 217,910
Allegheny Technologies Inc 854 23,587
Ashland Inc 631 38,358
Dow Chemical Co/The 8,885 383,832
EI Du Pont de Nemours & Co 9,223 364,954
Eastman Chemical Co 810 38,856
Ecolab Inc 2,153 71,049
Engelhard Corp 1,218 34,652
Freeport-McMoRan Copper & Gold Inc 1,812 76,412
Georgia-Pacific Corp 2,372 76,117
Hercules Inc* 1,129 14,395
International Flavors & Fragrances Inc 783 28,266
International Paper Co 4,595 141,756
Louisiana-Pacific Corp 1,130 28,578
MeadWestvaco Corp 1,712 49,597
Newmont Mining Corp 4,166 164,890
Nucor Corp 1,452 82,009
PPG Industries Inc 1,587 99,949
Phelps Dodge Corp 942 101,293
Plum Creek Timber Co Inc (REIT) 1,837 67,510
Praxair Inc 2,967 143,306
Rohm & Haas Co 1,896 82,305
Sherwin-Williams Co/The 1,234 57,208
Sigma-Aldrich Corp 627 39,125
Temple-Inland Inc 1,152 44,340
United States Steel Corp 1,191 49,927
Weyerhaeuser Co 2,267 147,400
-----------
Total Basic Materials 2,783,201
-----------
Communications (10.22%)
ADC Telecommunications Inc* 1,162 24,332
AT&T Corp 7,407 145,770
Alltel Corp 3,496 216,717
Andrew Corp* 1,650 19,025
Avaya Inc* 4,387 44,747
BellSouth Corp 16,997 446,851
CenturyTel Inc 1,354 48,609
Ciena Corp* 5,753 12,944
Cisco Systems Inc* 59,369 1,046,082
Citizens Communications Co 3,037 41,425
Clear Channel Communications Inc 4,740 157,842
Comcast Corp* 20,475 629,606
Comverse Technology Inc* 1,834 47,281
Corning Inc* 13,453 268,522
Walt Disney Co 18,906 476,242
Dow Jones & Co Inc 653 26,675
eBay Inc* 11,303 457,658
Gannett Co Inc 2,273 165,293
Interpublic Group of Cos Inc* 4,255 51,613
JDS Uniphase Corp* 14,529 23,101
Knight Ridder Inc 142 9,099
Lucent Technologies Inc* 41,152 126,748
McGraw-Hill Cos Inc/The 3,516 169,542
Meredith Corp 427 20,966
Monster Worldwide Inc* 1,196 37,363
Motorola Inc 22,735 497,442
New York Times Co 1,459 46,586
News Corp 26,761 433,796
Omnicom Group Inc 1,681 135,220
Qualcomm Inc 15,210 603,989
Qwest Communications International Inc* 15,571 60,727
SBC Communications Inc 30,664 738,389
Scientific-Atlanta Inc 1,520 58,155
Sprint Nextel Corp 27,144 703,844
Symantec Corp* 11,268 236,403
Tellabs Inc* 4,380 38,938
Time Warner Inc 43,521 779,896
25
- --------------------------------------------------------------------------------
S&P 500 INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Tribune Co 2,908 $ 109,254
Univision Communications Inc* 2,846 76,557
Verizon Communications Inc 25,743 842,054
Viacom Inc 14,924 507,267
Yahoo! Inc* 12,216 407,281
-----------
Total Communications 10,989,851
-----------
Consumer, Cyclical (8.92%)
Autonation Inc* 2,202 45,824
Autozone Inc* 560 52,920
Bed Bath & Beyond Inc* 2,727 110,580
Best Buy Co Inc 4,166 198,552
Big Lots Inc 1,135 13,404
Brunswick Corp 956 42,064
CVS Corp 7,650 224,681
Carnival Corp 4,938 243,641
Centex Corp 1,220 82,655
Circuit City Stores Inc 1,966 33,206
Cintas Corp 1,457 60,101
Coach Inc* 3,480 115,501
Cooper Tire & Rubber Co 779 13,165
Costco Wholesale Corp 4,433 192,570
DR Horton Inc 2,596 95,844
Dana Corp 1,495 20,123
Darden Restaurants Inc 1,381 43,377
Delphi Corp 5,646 31,335
Delta Air Lines Inc* 1,352 1,568
Dillard's Inc 852 19,179
Dollar General Corp 2,796 53,292
Family Dollar Stores Inc 1,687 33,538
Federated Department Stores Inc 2,471 170,420
Ford Motor Co 17,383 173,309
Gap Inc/The 7,241 137,651
General Motors Corp 5,203 177,891
Genuine Parts Co 1,739 79,681
Goodyear Tire & Rubber Co/The* 1,764 29,635
WW Grainger Inc 797 51,263
Harley-Davidson Inc 2,664 131,229
Harrah's Entertainment Inc 1,735 120,687
Hasbro Inc 1,549 32,064
Hilton Hotels Corp 3,584 83,041
Home Depot Inc 19,910 802,771
International Game Technology 3,167 87,789
Johnson Controls Inc 1,812 108,684
Jones Apparel Group Inc 1,220 34,380
KB Home 776 57,548
Kohl's Corp* 3,078 161,441
Ltd Brands 3,633 79,853
Liz Claiborne Inc 1,076 44,148
Lowe's Cos Inc 7,181 461,810
Marriott International Inc 1,859 117,507
Mattel Inc 3,813 68,748
Maytag Corp 844 15,952
McDonald's Corp 11,812 383,299
Navistar International Corp 734 23,459
Newell Rubbermaid Inc 2,765 64,784
Nike Inc 2,140 168,867
Nordstrom Inc 2,258 75,824
Office Depot Inc* 2,943 88,290
OfficeMax Inc 700 20,685
Paccar Inc 1,564 109,605
JC Penney Co Inc Holding Co 2,436 118,463
Pulte Homes Inc 1,055 90,941
RadioShack Corp 1,294 32,428
Reebok International Ltd 519 29,220
Sabre Holdings Corp 1,363 26,142
Sears Holdings Corp* 977 132,735
Southwest Airlines Co 7,185 95,704
Staples Inc 7,039 154,576
Starbucks Corp* 3,624 177,721
Starwood Hotels & Resorts Worldwide Inc 2,046 119,282
TJX Cos Inc 4,410 92,213
Target Corp 8,241 442,954
Tiffany & Co 1,341 50,180
VF Corp 975 57,827
Visteon Corp* 1,369 13,526
Wal-Mart Stores Inc 31,070 1,396,907
Walgreen Co 9,461 438,328
Wendy's International Inc 1,196 56,379
Whirlpool Corp 642 48,824
Yum! Brands Inc 2,668 126,410
-----------
Total Consumer, Cyclical 9,590,195
-----------
Consumer, Non-cyclical (21.17%)
ACCO Brands Corp* 338 8,822
Abbott Laboratories 14,418 650,684
Aetna Inc 2,675 213,117
Alberto-Culver Co 754 32,384
Albertson's Inc 3,403 68,502
Allergan Inc 1,179 108,527
Altria Group Inc 19,190 1,356,733
AmerisourceBergen Corp 1,027 76,686
Amgen Inc 11,525 920,848
Anheuser-Busch Cos Inc 7,177 318,013
Apollo Group Inc* 1,516 119,249
Archer-Daniels-Midland Co 5,777 130,040
Avery Dennison Corp 991 52,959
Avon Products Inc 4,458 146,312
CR Bard Inc 984 63,301
Bausch & Lomb Inc 546 41,381
Baxter International Inc 5,731 231,131
Becton Dickinson & Co 2,348 123,575
Biomet Inc 2,347 86,581
Biogen Idec Inc* 3,156 133,025
H&R Block Inc 3,212 86,563
Boston Scientific Corp* 6,912 185,795
Bristol-Myers Squibb Co 18,157 444,302
Brown-Forman Corp 879 49,778
Campbell Soup Co 2,975 87,465
Cardinal Health Inc 3,992 237,963
Caremark Rx Inc* 4,202 196,359
Cendant Corp 9,748 198,274
Chiron Corp* 1,439 52,437
Clorox Co 1,428 82,210
Coca-Cola Co/The 21,028 925,232
Coca-Cola Enterprises Inc 3,439 76,862
Colgate-Palmolive Co 4,825 253,313
ConAgra Foods Inc 4,822 110,086
Constellation Brands Inc* 1,869 51,435
Convergys Corp* 1,500 21,330
RR Donnelley & Sons Co 1,958 73,151
Equifax Inc 1,159 38,293
Express Scripts Inc* 1,382 79,963
Forest Laboratories Inc* 3,126 138,794
Fortune Brands Inc 1,341 116,640
General Mills Inc 3,399 156,762
Genzyme Corp* 2,372 168,815
Gilead Sciences Inc* 4,325 185,975
Gillette Co/The 9,268 499,267
Guidant Corp 2,986 210,931
HCA Inc 4,014 197,890
Health Management Associates Inc 2,507 60,970
HJ Heinz Co 3,247 116,632
Hershey Co/The 2,033 120,130
Hospira Inc* 1,550 61,752
Humana Inc* 1,588 76,478
Johnson & Johnson 27,615 1,750,515
Kellogg Co 3,222 146,053
Kimberly-Clark Corp 4,393 273,772
King Pharmaceuticals Inc* 2,430 35,721
Kroger Co/The 6,936 136,917
Laboratory Corp of America Holdings* 1,202 59,283
Eli Lilly & Co 10,527 579,196
Manor Care Inc 938 37,023
McCormick & Co Inc 1,375 46,626
McKesson Corp 2,757 128,669
Medco Health Solutions Inc* 2,741 135,049
Medimmune Inc* 2,295 68,689
Medtronic Inc 11,258 641,706
Merck & Co Inc 20,453 577,388
Millipore Corp* 423 27,051
Molson Coors Brewing Co 750 48,083
Monsanto Co 2,460 157,046
Moody's Corp 2,675 131,369
26
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S&P 500 INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Mylan Laboratories Inc 1,407 $ 25,875
Paychex Inc 3,399 116,008
Pepsi Bottling Group Inc 1,928 56,837
PepsiCo Inc 15,502 850,285
Pfizer Inc 69,052 1,758,754
Procter & Gamble Co 23,001 1,276,095
Quest Diagnostics Inc 1,680 83,966
Reynolds American Inc 1,035 86,878
Robert Half International Inc 1,510 50,857
Safeway Inc 4,202 99,713
St Jude Medical Inc 3,342 153,398
Sara Lee Corp 7,296 138,624
Schering-Plough Corp 13,695 293,210
Stryker Corp 3,454 188,416
Supervalu Inc 1,221 42,491
Sysco Corp 5,849 195,240
Tenet Healthcare Corp 4,695 57,185
Tyson Foods Inc 2,300 40,894
UST Inc 1,650 70,224
UnitedHealth Group Inc 11,799 607,649
Watson Pharmaceuticals Inc* 1,136 39,169
WellPoint Inc* 5,722 424,859
WM Wrigley Jr Co 1,807 128,387
Wyeth 12,429 569,124
Zimmer Holdings Inc* 2,250 184,883
-----------
Total Consumer, Non-cyclical 22,762,894
-----------
Energy (9.20%)
Amerada Hess Corp 831 105,620
Anadarko Petroleum Corp 2,209 200,732
Apache Corp 3,084 220,876
BJ Services Co 1,474 92,980
Baker Hughes Inc 3,175 186,531
Burlington Resources Inc 3,573 263,652
Chevron Corp 19,077 1,171,328
ConocoPhillips 12,904 850,890
Devon Energy Corp 4,375 265,869
Dynegy Inc* 3,790 16,524
EOG Resources Inc 2,186 139,532
El Paso Corp 5,972 69,275
Exxon Mobil Corp 59,130 3,541,887
Halliburton Co 4,731 293,180
Kerr-McGee Corp 1,069 94,104
Kinder Morgan Inc 971 92,701
Marathon Oil Corp 3,391 218,075
Murphy Oil Corp 1,500 81,975
National Oilwell Varco Inc* 1,644 105,561
Occidental Petroleum Corp 3,705 307,626
Rowan Cos Inc 1,121 41,701
Schlumberger Ltd 5,450 469,954
Sunoco Inc 1,306 94,946
Valero Energy Corp 2,376 253,044
Williams Cos Inc 5,523 123,936
XTO Energy Inc 3,449 137,270
Nabors Industries Ltd* 1,352 90,584
Noble Corp 1,308 93,260
Transocean Inc* 3,035 179,186
Weatherford International Ltd* 1,300 88,023
-----------
Total Energy 9,890,822
-----------
Financial (19.12%)
Aflac Inc 4,794 207,197
Allstate Corp/The 6,185 347,659
AMBAC Financial Group Inc 1,027 70,432
American Express Co 10,891 601,619
American International Group Inc 24,096 1,426,483
AmSouth Bancorp 3,273 86,145
AON Corp 2,984 89,281
Apartment Investment & Management Co 995 39,701
Archstone-Smith Trust 1,800 72,540
BB&T Corp 5,220 211,775
Bank of America Corp 37,330 1,606,310
Bank of New York Co Inc/The 7,238 221,266
Bear Stearns Cos Inc/The 1,041 104,621
Cigna Corp 1,182 136,308
CIT Group Inc 1,917 86,802
Capital One Financial Corp 2,344 192,771
Chubb Corp 1,778 154,615
Cincinnati Financial Corp 1,551 63,560
Citigroup Inc 48,311 2,114,572
Comerica Inc 1,531 92,610
Compass Bancshares Inc 1,184 55,423
Countrywide Financial Corp 5,526 186,724
E*Trade Financial Corp* 3,742 59,872
Equity Office Properties Trust 3,757 125,108
Equity Residential 2,684 101,375
Freddie Mac 6,409 386,975
Fannie Mae 8,949 456,757
Federated Investors Inc 848 26,339
Fifth Third Bancorp 4,872 201,750
First Horizon National Corp 1,238 48,381
Franklin Resources Inc 1,829 147,125
Golden West Financial Corp 2,653 161,806
Goldman Sachs Group Inc 4,122 458,284
Hartford Financial Services Group Inc 2,734 199,719
Huntington Bancshares Inc 2,325 55,777
JPMorgan Chase & Co 32,624 1,105,627
Janus Capital Group Inc 2,377 33,587
Jefferson-Pilot Corp 1,373 68,279
Keycorp 3,787 125,425
Lehman Brothers Holdings Inc 2,543 268,693
Lincoln National Corp 1,656 82,121
Loews Corp 1,456 127,677
M&T Bank Corp 859 91,587
MBIA Inc 1,215 70,434
MBNA Corp 11,813 297,688
MGIC Investment Corp 844 52,691
Marsh & McLennan Cos Inc 4,930 138,287
Marshall & Ilsley Corp 1,948 85,264
Mellon Financial Corp 3,900 126,555
Merrill Lynch & Co Inc 8,777 501,693
Metlife Inc 6,847 335,366
Morgan Stanley 10,169 517,297
National City Corp 5,495 201,282
North Fork Bancorporation Inc 4,563 125,437
Northern Trust Corp 1,883 93,849
PNC Financial Services Group Inc 2,626 147,660
T Rowe Price Group Inc 1,113 70,119
Principal Financial Group 2,807 128,561
Progressive Corp/The 1,852 178,551
Prologis 1,848 80,406
Providian Financial Corp* 2,949 54,851
Prudential Financial Inc 4,888 314,641
Public Storage Inc 1,000 67,520
Regions Financial Corp 4,376 143,183
SLM Corp 3,909 194,473
Safeco Corp 1,187 61,890
St Paul Travelers Cos Inc/The 6,238 268,296
Charles Schwab Corp/The 10,595 143,350
Simon Property Group Inc 2,050 155,944
Sovereign Bancorp Inc 3,448 80,407
State Street Corp 3,154 152,433
SunTrust Banks Inc 3,146 221,101
Synovus Financial Corp 2,906 83,606
Torchmark Corp 987 52,054
US Bancorp 17,013 497,120
UnumProvident Corp 2,983 57,632
Vornado Realty Trust 1,100 94,622
Wachovia Corp 14,664 727,628
Washington Mutual Inc 8,116 337,463
Wells Fargo & Co 15,624 931,503
Zions Bancorporation 853 59,591
ACE Ltd 2,636 117,065
XL Capital Ltd 1,349 93,756
-----------
Total Financial 20,561,947
-----------
Industrial (10.77%)
Agilent Technologies Inc* 4,015 129,122
Allied Waste Industries Inc* 2,502 19,966
American Power Conversion Corp 1,724 45,117
American Standard Cos Inc 1,757 80,119
Applera Corp - Applied Biosystems Group 1,972 42,398
Ball Corp 990 37,135
27
- --------------------------------------------------------------------------------
S&P 500 INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Bemis Co 1,106 $ 28,922
Black & Decker Corp 725 61,843
Boeing Co 7,696 515,786
Burlington Northern Santa Fe Corp 3,482 184,616
CSX Corp 2,159 94,845
Caterpillar Inc 6,388 354,470
Cummins Inc 447 38,652
Danaher Corp 2,583 138,345
Deere & Co 2,255 147,432
Dover Corp 1,842 74,969
Eastman Kodak Co 2,684 65,409
Eaton Corp 1,440 92,045
Emerson Electric Co 3,881 261,114
FedEx Corp 2,838 231,127
Fisher Scientific International Inc 1,154 74,410
Fluor Corp 774 47,918
General Dynamics Corp 1,851 212,106
General Electric Co 98,469 3,309,543
Goodrich Corp 1,231 56,404
Honeywell International Inc 7,897 302,297
ITT Industries Inc 899 98,099
Illinois Tool Works Inc 2,579 217,358
Jabil Circuit Inc* 1,699 50,019
L-3 Communications Holdings Inc 1,134 92,852
Leggett & Platt Inc 1,920 46,483
Lockheed Martin Corp 3,715 231,222
Masco Corp 4,084 125,297
Molex Inc 1,595 42,682
Norfolk Southern Corp 3,784 134,748
Northrop Grumman Corp 3,331 186,836
Pactiv Corp* 1,493 28,979
Pall Corp 1,225 35,035
Parker Hannifin Corp 1,073 69,144
PerkinElmer Inc 1,321 27,345
Power-One Inc* 892 4,317
Raytheon Co 4,248 166,607
Rockwell Automation Inc 1,670 86,907
Rockwell Collins Inc 1,757 84,564
Ryder System Inc 677 23,756
Sanmina-SCI Corp* 5,243 26,582
Sealed Air Corp* 791 40,143
Snap-On Inc 609 21,620
Solectron Corp* 9,768 40,049
Stanley Works/The 670 30,653
Symbol Technologies Inc 2,853 26,191
Tektronix Inc 880 22,238
Textron Inc 1,233 87,913
Thermo Electron Corp 1,602 44,696
3M Co 7,154 509,007
Tyco International Ltd 18,734 521,367
Union Pacific Corp 2,402 163,985
United Parcel Service Inc 10,344 733,286
United Technologies Corp 9,481 474,050
Vulcan Materials Co 968 69,551
Waste Management Inc 5,228 143,404
Waters Corp* 1,083 49,244
Cooper Industries Ltd 903 59,995
Ingersoll-Rand Co Ltd 1,526 121,500
-----------
Total Industrial 11,583,834
-----------
Technology (11.48%)
Adobe Systems Inc 4,534 122,599
Advanced Micro Devices Inc 3,687 76,579
Affiliated Computer Services Inc* 1,205 62,600
Altera Corp* 3,445 75,342
Analog Devices Inc 3,480 126,846
Apple Computer Inc* 7,668 359,859
Applied Materials Inc 15,309 280,308
Applied Micro Circuits Corp* 3,100 8,525
Autodesk Inc* 2,088 90,202
Automatic Data Processing Inc 5,374 229,739
BMC Software Inc* 2,233 44,660
Broadcom Corp* 2,836 123,366
Citrix Systems Inc* 1,744 41,507
Computer Associates International Inc 4,990 134,530
Computer Sciences Corp 1,690 75,290
Compuware Corp* 3,895 35,289
Dell Inc* 22,435 798,686
EMC Corp 22,360 287,550
Electronic Arts Inc* 2,829 162,045
Electronic Data Systems Corp 4,789 107,274
First Data Corp 7,240 300,822
Fiserv Inc* 1,768 79,330
Freescale Semiconductor Inc* 3,839 92,443
Gateway Inc* 3,760 11,430
Hewlett-Packard Co 26,781 743,441
IMS Health Inc 2,133 58,018
Intel Corp 57,289 1,473,473
International Business Machines Corp 15,022 1,211,074
Intuit Inc* 1,703 78,066
Kla-Tencor Corp 1,959 99,439
LSI Logic Corp* 3,860 37,210
Lexmark International Inc* 1,056 66,507
Linear Technology Corp 2,817 106,849
Maxim Integrated Products Inc 3,002 128,035
Mercury Interactive Corp* 849 31,133
Microsoft Corp 93,282 2,555,927
Micron Technology Inc 5,662 67,434
NCR Corp* 1,875 64,163
National Semiconductor Corp 3,203 79,851
Network Appliance Inc* 3,359 79,743
Novell Inc* 3,782 24,886
Novellus Systems Inc* 1,406 37,695
Nvidia Corp* 1,524 46,756
Oracle Corp* 41,052 532,444
PMC - Sierra Inc* 1,841 15,612
Parametric Technology Corp* 2,707 16,404
Pitney Bowes Inc 2,120 91,690
QLogic Corp* 993 34,318
Siebel Systems Inc 5,112 42,174
Sun Microsystems Inc* 31,638 120,224
Teradyne Inc* 2,030 34,104
Texas Instruments Inc 15,483 505,984
Unisys Corp* 3,371 22,417
Xilinx Inc 3,304 92,809
Xerox Corp* 9,156 122,782
-----------
Total Technology 12,347,483
-----------
Utilities (3.34%)
AES Corp/The* 6,111 96,187
Allegheny Energy Inc* 1,381 41,651
Ameren Corp 1,912 105,026
American Electric Power Co Inc 3,669 136,413
CMS Energy Corp* 2,062 33,198
Calpine Corp* 4,357 13,376
Centerpoint Energy Inc 2,697 38,324
Cinergy Corp 1,882 82,883
Consolidated Edison Inc 2,227 104,469
Constellation Energy Group Inc 1,672 98,230
DTE Energy Co 1,568 71,767
Dominion Resources Inc 3,130 239,382
Duke Energy Corp 8,747 253,576
Edison International 2,978 134,099
Entergy Corp 1,978 148,172
Exelon Corp 6,194 333,795
FPL Group Inc 3,678 158,485
FirstEnergy Corp 3,118 159,112
KeySpan Corp 1,600 61,072
Nicor Inc 460 19,049
NiSource Inc 2,493 60,181
PG&E Corp 3,392 127,268
PPL Corp 3,632 116,079
Peoples Energy Corp 383 15,921
Pinnacle West Capital Corp 969 43,537
Progress Energy Inc 2,285 99,603
Public Service Enterprise Group Inc 2,191 141,429
Sempra Energy 2,396 107,389
Southern Co/The 6,912 237,772
TECO Energy Inc 1,982 34,506
TXU Corp 2,190 212,473
Xcel Energy Inc 3,728 71,726
-----------
Total Utilities 3,596,150
-----------
Total Common Stock (Cost $81,308,617) 104,106,377
-----------
28
- --------------------------------------------------------------------------------
S&P 500 INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
- --------------------------------------------------------------------------------
Par Value
---------
Short-Term Investments (2.95%)
$ 100,000 United States Treasury Bills 09/08/05 (b) $ 99,940
3,100,000 United States Treasury Bills 11/17/05 3,077,213
------------
Total Short-Term Investments (Cost $3,177,153) 3,177,153
------------
Total Investments (Cost $84,485,770)(a)(99.76%) 107,283,530
Other Assets (0.24%) 256,482
------------
Net Assets (100.00%) $107,540,012
============
* Non-Income Producing Security
(a) Aggregate cost for federal income tax purposes is $84,485,770. At August
31, 2005, unrealized appreciation (depreciation) of securities for federal
income tax purpose is as follows:
Unrealized appreciation $ 32,919,550
Unrealized depreciation (10,121,790)
------------
Net unrealized appreciation $ 22,797,760
============
(b) At August 31, 2005, certain United States Treasury Bills with a market
value of $199,219 were pledged to cover margin requirements for futures
contracts.
(c) Futures contracts at August 31, 2005:
(Contracts-$250 times premium/delivery month/commitment)
Unrealized
Appreciation
S&P 500 Index:
11/Sept 05/Long $ 38,350
============
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
S&P MIDCAP INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Common Stocks (98.06%)
Basic Materials (3.63%)
Airgas Inc 10,448 $ 293,902
Albemarle Corp 6,886 250,031
Bowater Inc 8,349 259,069
Cabot Corp 9,435 311,355
Chemtura Corp 34,919 599,210
Cytec Industries Inc 6,464 307,686
FMC Corp* 5,534 315,217
Ferro Corp 5,836 110,767
Glatfelter 6,114 83,823
Longview Fibre Co 7,663 154,793
Lubrizol Corp 10,101 417,676
Lyondell Chemical Co 33,654 868,273
Minerals Technologies Inc 3,079 187,665
Olin Corp 10,642 198,793
Potlatch Corp 4,140 223,560
RPM International Inc 17,583 333,198
Rayonier Inc 7,531 408,557
Sensient Technologies Corp 7,064 132,591
Steel Dynamics Inc 6,691 210,967
Valspar Corp 7,724 373,146
-----------
Total Basic Materials 6,040,279
-----------
Communications (5.25%)
Adtran Inc 10,817 279,295
Avocent Corp* 7,475 249,067
Belo Corp 16,013 393,279
Catalina Marketing Corp 7,281 174,307
Checkfree Corp* 12,594 463,333
Cincinnati Bell Inc* 36,800 159,344
CommScope Inc* 7,575 141,653
Emmis Communications Corp* 5,027 120,447
Entercom Communications Corp* 6,943 232,243
F5 Networks Inc* 5,501 227,136
Harris Corp 19,974 771,196
Harte-Hanks Inc 10,584 271,585
Lee Enterprises Inc 6,807 295,424
Macromedia Inc* 11,043 408,039
McAfee Inc* 24,035 736,673
Media General Inc 3,593 236,383
Newport Corp* 5,975 79,707
Plantronics Inc 7,361 239,969
Polycom Inc* 14,723 262,217
Powerwave Technologies Inc* 14,548 152,463
RSA Security Inc* 9,687 127,287
RF Micro Devices Inc* 28,136 184,291
Reader's Digest Association Inc/The 14,939 242,908
Scholastic Corp* 5,526 201,533
Telephone & Data Systems Inc 8,193 334,684
Telephone & Data Systems Inc 8,193 315,431
3Com Corp* 57,072 194,045
Utstarcom Inc* 15,917 122,561
Washington Post Co/The 1,035 861,120
Westwood One Inc 13,373 271,873
-----------
Total Communications 8,749,493
-----------
Consumer, Cyclical (15.76%)
Abercrombie & Fitch Co 13,075 727,101
Advance Auto Parts* 11,032 672,180
Aeropostale Inc* 8,352 213,310
Airtran Holdings Inc* 11,941 123,351
Alaska Air Group Inc* 3,745 126,281
American Eagle Outfitters 20,006 572,772
AnnTaylor Stores Corp* 10,587 271,027
Applebees International Inc 12,164 268,946
ArvinMeritor Inc 10,508 194,923
BJ's Wholesale Club Inc* 10,426 297,662
Bandag Inc 2,701 116,953
Barnes & Noble Inc 9,763 368,749
Bob Evans Farms Inc 4,916 118,918
Borders Group Inc 11,265 257,180
BorgWarner Inc 8,427 492,642
Boyd Gaming Corp 9,937 462,369
Brinker International Inc* 13,242 491,940
CBRL Group Inc 7,129 257,785
CDW Corp 10,876 642,554
Callaway Golf Co 10,626 158,434
Carmax Inc* 15,638 498,227
Cheesecake Factory/The* 11,671 369,621
Chico's FAS Inc* 26,796 930,089
Claire's Stores Inc 14,850 348,678
Copart Inc* 12,534 309,464
Dollar Tree Stores Inc* 16,945 385,838
Fastenal Co 10,569 640,270
Foot Locker Inc 23,393 510,903
29
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S&P MIDCAP INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Furniture Brands International Inc 7,964 $ 152,192
GTECH Holdings Corp 17,374 496,549
HNI Corp 7,807 450,074
Harman International Industries Inc 9,659 998,741
Hovnanian Enterprises Inc* 7,259 436,629
International Speedway Corp 6,633 371,912
JetBlue Airways Corp* 14,431 274,911
Krispy Kreme Doughnuts Inc* 8,602 59,784
Lear Corp 10,072 379,714
Lennar Corp 21,751 1,350,737
Macrovision Corp* 7,461 138,029
Michaels Stores Inc 20,223 734,095
Herman Miller Inc 10,488 313,591
Modine Manufacturing Co 4,817 169,366
Mohawk Industries Inc* 8,887 758,772
Neiman-Marcus Group Inc 7,343 726,223
99 Cents Only Stores* 9,681 102,135
O'Reilly Automotive Inc* 15,798 435,551
Outback Steakhouse Inc 10,275 427,543
Pacific Sunwear Of California* 11,138 265,975
Payless Shoesource Inc* 10,216 189,405
Petsmart Inc 21,889 564,080
Pier 1 Imports Inc 12,956 161,302
Polo Ralph Lauren Corp 9,000 445,950
Proliance International Inc* 1,135 6,435
Regis Corp 6,709 274,734
Ross Stores Inc 22,024 547,957
Ruby Tuesday Inc 9,622 212,646
Ryland Group Inc 7,133 516,144
Saks Inc 20,965 455,150
Tech Data Corp* 8,752 320,411
Thor Industries Inc 6,715 222,938
Timberland Co* 9,582 316,110
Toll Brothers Inc* 18,542 890,943
Urban Outfitters Inc* 9,762 543,353
Williams-Sonoma Inc* 17,564 706,951
-----------
Total Consumer, Cyclical 26,245,199
-----------
Consumer, Non-cyclical (18.76%)
Adesa Inc 13,753 313,568
Advanced Medical Optics Inc* 9,644 379,588
Alliance Data Systems Corp* 9,916 417,166
American Greetings Corp 10,349 262,761
Apria Healthcare Group Inc* 7,272 248,921
Banta Corp 3,740 183,073
Barr Pharmaceuticals Inc* 14,277 651,174
Beckman Coulter Inc 9,287 518,122
Blyth Inc 5,697 141,570
Career Education Corp* 15,378 602,818
Cephalon Inc* 8,705 352,727
Charles River Laboratories International Inc* 9,919 504,084
ChoicePoint Inc* 13,310 571,398
Church & Dwight Co Inc 9,509 362,863
Community Health Systems Inc* 9,998 368,226
Corinthian Colleges Inc* 13,615 172,638
Corporate Executive Board Co 5,618 453,766
Covance Inc* 9,420 492,666
Cytyc Corp* 17,018 424,599
Dean Foods Co* 22,360 825,978
Deluxe Corp 7,536 299,481
Dentsply International Inc 11,239 595,330
DeVry Inc* 9,801 181,024
Education Management Corp* 10,239 346,795
Edwards Lifesciences Corp* 8,939 393,316
Gartner Inc 15,431 173,444
Gen-Probe Inc* 7,475 340,262
Health Net Inc* 16,659 768,146
Hillenbrand Industries Inc 8,817 438,822
Hormel Foods Corp 15,748 502,204
ITT Educational Services Inc 6,892 350,389
Inamed Corp* 5,375 389,688
Intuitive Surgical Inc* 5,151 383,234
Invitrogen Corp* 7,740 655,810
IVAX Corp* 34,925 904,558
Kelly Services Inc 4,906 143,402
Korn/Ferry International* 5,430 107,623
Laureate Education Inc* 7,397 309,564
LifePoint Hospitals Inc* 7,693 349,878
Lincare Holdings Inc* 15,056 637,471
MPS Group Inc* 15,386 170,169
Manpower Inc 13,487 607,724
Martek Biosciences Corp* 4,656 237,456
Millennium Pharmaceuticals Inc* 46,016 460,620
Omnicare Inc 15,630 821,357
Pacificare Health Systems* 12,936 975,116
Par Pharmaceutical Cos Inc* 5,082 122,832
Patterson Cos Inc* 20,610 825,637
PepsiAmericas Inc 15,893 400,821
Perrigo Co 13,259 190,001
Protein Design Labs Inc* 15,808 422,706
Quanta Services Inc* 16,328 195,936
Renal Care Group Inc* 10,176 479,188
Rent-A-Center Inc* 10,743 217,009
Rollins Inc 7,384 145,169
Ruddick Corp 6,508 152,092
Henry Schein Inc* 12,992 541,636
Scotts Miracle-Gro Co/The 4,580 375,468
Sepracor Inc* 15,738 790,048
Smithfield Foods Inc* 15,460 430,561
JM Smucker Co/The 8,768 418,409
Sotheby's Holdings* 8,843 153,780
STERIS Corp 10,396 259,276
Techne Corp* 5,754 327,805
Tootsie Roll Industries Inc 7,493 238,727
Triad Hospitals Inc* 12,892 620,621
Tupperware Corp 8,157 178,801
United Rentals Inc* 10,843 195,716
Universal Corp 3,844 159,987
Universal Health Services Inc 8,752 447,315
VCA Antech Inc* 11,429 274,182
Valassis Communications Inc* 7,692 303,296
Valeant Pharmaceuticals International 13,717 274,066
Varian Medical Systems Inc 20,039 797,953
Vertex Pharmaceuticals Inc* 13,986 257,342
Whole Foods Market Inc 9,672 1,250,203
-----------
Total Consumer, Non-cyclical 31,237,172
-----------
Diversified (0.37%)
Leucadia National Corp 14,985 610,189
-----------
Total Diversified 610,189
-----------
Energy (9.25%)
Arch Coal Inc 9,410 604,122
Cooper Cameron Corp* 8,106 584,848
Denbury Resources Inc* 8,416 380,656
ENSCO International Inc 22,691 927,154
Equitable Resources Inc 9,158 690,513
FMC Technologies Inc* 10,260 412,555
Forest Oil Corp* 8,259 371,242
Grant Prideco Inc* 18,538 683,311
Hanover Compressor Co* 10,880 164,506
Helmerich & Payne Inc 7,614 452,424
National Fuel Gas Co 11,502 346,325
Newfield Exploration Co* 18,936 894,158
Noble Energy Inc 13,059 1,151,020
Patterson-UTI Energy Inc 25,304 860,842
Peabody Energy Corp 18,000 1,290,060
Pioneer Natural Resources Co 21,730 1,073,462
Plains Exploration & Production Co* 11,568 428,594
Pogo Producing Co 9,542 534,352
Pride International Inc* 21,980 556,094
Questar Corp 12,708 991,478
Smith International Inc 31,820 1,105,427
Tidewater Inc 9,097 405,180
Western Gas Resources Inc 10,301 494,448
-----------
Total Energy 15,402,771
-----------
Financial (16.72%)
AMB Property Corp 12,592 558,203
Allmerica Financial Corp* 8,007 325,965
American Financial Group Inc 8,755 293,555
AmeriCredit Corp* 22,793 568,457
AmerUs Group Co 5,917 327,328
30
- --------------------------------------------------------------------------------
S&P MIDCAP INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Associated Banc-Corp 19,423 $ 632,024
Astoria Financial Corp 15,582 435,205
Bank of Hawaii Corp 8,021 407,066
WR Berkley Corp 17,580 623,914
Brown & Brown Inc 9,632 457,231
City National Corp 6,850 493,474
Colonial BancGroup Inc/The 21,837 507,929
Commerce Bancorp Inc 23,807 802,772
Cullen/Frost Bankers Inc 7,258 354,698
Developers Diversified Realty Corp 16,176 776,286
Eaton Vance Corp 19,982 510,940
AG Edwards Inc 11,408 515,756
Fidelity National Financial Inc 26,101 1,021,071
First American Corp 12,483 519,418
FirstMerit Corp 12,623 352,939
Arthur J Gallagher & Co 13,822 394,756
Greater Bay Bancorp 7,651 192,805
HCC Insurance Holdings Inc 15,292 407,532
Hibernia Corp 23,279 739,108
Highwoods Properties Inc 8,059 248,862
Horace Mann Educators Corp 5,962 116,736
Hospitality Properties Trust 9,361 405,893
Independence Community Bank Corp 11,793 403,321
IndyMac Bancorp Inc 9,327 371,494
Investors Financial Services Corp 9,981 350,533
Jefferies Group Inc 7,964 314,419
LaBranche & Co Inc* 8,363 71,755
Legg Mason Inc 16,246 1,698,194
Liberty Property Trust 12,928 561,075
Macerich Co/The 8,841 575,372
Mack-Cali Realty Corp 8,477 373,412
Mercantile Bankshares Corp 11,881 639,554
New Plan Excel Realty Trust 15,455 370,147
New York Community Bancorp Inc 36,934 649,300
Ohio Casualty Corp 9,369 236,661
Old Republic International Corp 27,357 688,576
PMI Group Inc/The 14,114 571,052
Protective Life Corp 10,418 427,451
Radian Group Inc 13,270 679,159
Raymond James Financial Inc 10,274 311,610
Regency Centers Corp 9,359 545,910
SVB Financial Group* 5,420 254,957
Stancorp Financial Group Inc 4,267 344,987
TCF Financial Corp 19,328 547,176
Texas Regional Bancshares Inc 6,175 182,842
United Dominion Realty Trust Inc 20,559 486,837
Unitrin Inc 8,651 399,417
Waddell & Reed Financial Inc 12,404 240,390
Washington Federal Inc 12,998 304,543
Webster Financial Corp 8,067 370,437
Weingarten Realty Investors 12,387 477,519
Westamerica Bancorporation 5,020 262,094
Wilmington Trust Corp 10,106 368,465
Everest Re Group Ltd 8,420 779,608
-----------
Total Financial 27,848,190
-----------
Industrial (12.02%)
AGCO Corp* 13,548 278,140
Alexander & Baldwin Inc 6,522 341,818
Alliant Techsystems Inc* 5,672 436,347
Ametek Inc 10,360 417,404
Amphenol Corp 13,276 563,035
Arrow Electronics Inc 17,383 518,361
Avnet Inc* 21,698 543,535
Brink's Co/The 8,513 342,052
CH Robinson Worldwide Inc 12,801 790,462
CNF Inc 7,752 391,243
Carlisle Cos Inc 4,658 287,958
Crane Co 8,309 246,029
Donaldson Co Inc 11,728 359,346
Dycom Industries Inc* 7,301 129,374
Energizer Holdings Inc* 10,589 687,226
Expeditors International Washington Inc 15,944 885,051
Federal Signal Corp 6,704 114,638
Flowserve Corp* 8,293 308,002
GATX Corp 7,418 300,652
Gentex Corp 23,370 400,094
Graco Inc 10,349 385,086
Granite Construction Inc 5,796 216,075
Harsco Corp 6,227 365,214
Hubbell Inc 9,223 416,880
JB Hunt Transport Services Inc 20,652 373,182
Jacobs Engineering Group Inc 8,532 532,397
Kemet Corp* 12,051 97,854
Kennametal Inc 5,627 262,443
Lancaster Colony Corp 4,889 223,672
Martin Marietta Materials Inc 7,076 511,736
Nordson Corp 5,052 179,447
Overseas Shipholding Group 5,484 335,347
Packaging Corp of America 12,725 266,716
Pentair Inc 15,195 599,899
Plexus Corp* 6,012 102,685
Precision Castparts Corp 9,912 958,292
Republic Services Inc 19,303 699,348
SPX Corp 11,273 513,372
Sequa Corp* 1,459 99,942
Sonoco Products Co 14,851 422,214
Stericycle Inc* 6,730 391,215
Swift Transportation Co Inc* 10,857 216,489
Tecumseh Products Co* 2,574 68,494
Teleflex Inc 5,612 386,386
Thomas & Betts Corp 8,939 317,692
Timken Co 13,700 402,369
Trinity Industries Inc 6,624 247,936
Varian Inc* 5,271 187,648
Vishay Intertechnology Inc* 24,921 321,481
Werner Enterprises Inc 10,985 196,082
Worthington Industries 11,993 217,073
Yellow Roadway Corp* 8,589 402,395
York International Corp 6,234 357,707
Zebra Technologies Corp* 10,784 402,890
-----------
Total Industrial 20,018,425
-----------
Technology (9.99%)
Activision Inc* 28,472 636,349
Acxiom Corp 12,866 255,004
Advent Software Inc* 4,509 124,268
Anteon International Corp* 4,800 220,560
Atmel Corp* 66,492 136,974
BISYS Group Inc/The* 18,125 270,606
CSG Systems International* 7,066 144,076
Cabot Microelectronics Corp* 3,453 102,934
Cadence Design Systems Inc* 40,561 649,382
Ceridian Corp* 22,386 454,436
Certegy Inc 9,361 321,831
Cognizant Technology Solutions Corp* 19,949 908,278
Credence Systems Corp* 13,279 117,785
Cree Inc* 11,481 294,373
Cypress Semiconductor Corp* 19,279 301,331
DST Systems Inc* 11,668 626,572
Diebold Inc 10,758 516,384
Dun & Bradstreet Corp* 10,357 659,430
Fair Isaac Corp 10,098 412,705
Fairchild Semiconductor International Inc* 17,960 302,626
Jack Henry & Associates Inc 12,601 246,728
Imation Corp 4,829 203,349
Integrated Device Technology Inc* 15,774 168,782
Integrated Circuit Systems Inc* 10,541 221,993
International Rectifier Corp* 10,155 488,456
Intersil Corp 22,584 474,264
Keane Inc 8,639 99,349
LTX Corp* 8,519 36,291
Lam Research Corp* 20,954 664,242
Lattice Semiconductor Corp* 15,799 70,148
MEMC Electronic Materials Inc* 19,800 333,828
McData Corp* 16,449 88,496
Mentor Graphics Corp* 10,632 90,691
Micrel Inc* 12,545 158,067
Microchip Technology Inc 31,096 967,708
MoneyGram International Inc 12,335 256,075
National Instruments Corp 11,025 313,000
Reynolds & Reynolds Co/The 9,000 256,860
SEI Investments Co 12,611 456,014
SanDisk Corp* 27,136 1,053,691
31
- --------------------------------------------------------------------------------
S&P MIDCAP INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Semtech Corp* 11,112 $ 181,681
Silicon Laboratories Inc* 7,236 224,533
Storage Technology Corp* 15,989 590,794
Sybase Inc* 14,271 318,671
Synopsys Inc* 21,775 413,725
Transaction Systems Architects Inc* 5,505 147,424
Triquint Semiconductor Inc* 19,158 73,950
Western Digital Corp* 31,567 437,203
Wind River Systems Inc* 11,457 150,545
------------
Technology 16,642,462
------------
Utilities (6.31%)
AGL Resources Inc 11,546 431,243
Alliant Energy Corp 17,432 523,832
Aqua America Inc 13,991 479,332
Aquila Inc* 55,970 224,999
Black Hills Corp 4,871 202,877
DPL Inc 18,980 512,270
Duquesne Light Holdings Inc 11,535 209,360
Energy East Corp 22,042 577,941
Great Plains Energy Inc 11,168 347,213
Hawaiian Electric Industries Inc 12,109 321,010
Idacorp Inc 6,334 194,454
MDU Resources Group Inc 17,748 571,131
Northeast Utilities 19,262 383,699
NSTAR 15,986 472,546
OGE Energy Corp 13,500 391,905
Oneok Inc 15,634 531,556
PNM Resources Inc 9,582 283,436
Pepco Holdings Inc 28,196 643,997
Puget Energy Inc 14,987 341,254
SCANA Corp 16,941 718,129
Sierra Pacific Resources* 17,619 256,884
Vectren Corp 11,415 319,619
WGL Holdings Inc 7,305 240,114
WPS Resources Corp 5,654 325,896
Westar Energy Inc 12,885 309,497
Wisconsin Energy Corp 17,552 687,511
------------
Total Utilities 10,501,705
------------
Total Common Stock (Cost $121,021,505) 163,295,885
------------
Par Value
---------
Short-Term Investments (1.01%)
$ 100,000 United States Treasury Bills 09/08/05(b) $ 99,938
200,000 United States Treasury Bills 10/06/05 199,364
500,000 United States Treasury Bills 10/27/05 497,398
900,000 United States Treasury Bills 11/17/05 893,395
------------
Total Short-Term Investments (Cost $1,690,095) 1,690,095
------------
Total Investments (Cost $122,711,600)(a)(99.07%) 164,985,980
Other Assets (0.93%) 1,549,287
------------
Net Assets (100.00%) $166,535,267
============
* Non- Income Producing Security
(a) Aggregate cost for federal income tax purposes is
$122,711,600. At August 31, 2005, unrealized appreciation
(depreciation) of securities for federal income tax
purpose is as follows:
Unrealized appreciation $ 49,695,028
Unrealized depreciation (7,420,648)
------------
Net unrealized appreciation 42,274,380
============
(b) At August 31, 2005, certain United States Treasury Bills
with a market value of $99,936 were pledged to cover
margin requirements for futures contracts.
(c) Futures contracts at August 31, 2005: (Contracts-$500
times premium/delivery month/commitment)
Unrealized
Appreciation
(Depreciation)
S&P MidCap 400 Index:
8/Sept 05/Long $ 35,692
============
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
S&P SMALLCAP INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Common Stock (93.18%)
Basic Materials (2.86%)
AMCOL International Corp 1,466 $ 27,854
Arch Chemicals Inc 1,194 29,563
Brush Engineered Materials Inc* 769 12,350
Buckeye Technologies Inc* 1,716 15,032
Caraustar Industries Inc* 1,296 15,047
Carpenter Technology Corp 1,324 73,747
Century Aluminum Co* 1,551 37,534
Chaparral Steel Co* 1,086 24,240
Cleveland-Cliffs Inc 1,096 77,904
Deltic Timber Corp 590 24,544
HB Fuller Co 1,462 47,968
Georgia Gulf Corp 1,693 47,235
MacDermid Inc 1,555 46,028
Material Sciences Corp 683 10,388
Neenah Paper Inc 750 22,725
OM Group Inc* 1,455 28,343
Omnova Solutions Inc* 1,854 8,714
Penford Corp 400 5,800
PolyOne Corp* 4,408 29,930
Pope & Talbot Inc 726 8,131
Quaker Chemical Corp 439 7,788
RTI International Metals Inc* 966 33,501
Reliance Steel & Aluminum Co 1,663 79,824
Rock-Tenn Co 1,817 27,691
Ryerson Tull Inc 1,152 23,662
Schulman A Inc 1,547 28,171
Schweitzer-Mauduit International Inc 770 17,725
Steel Technologies Inc 654 15,310
Wausau Paper Corp 2,594 30,869
Wellman Inc 1,480 10,286
-----------
Total Basic Materials 867,904
-----------
Communications (2.60%)
Adaptec Inc* 5,637 18,715
Advo Inc 1,557 50,976
Aeroflex Inc* 3,808 35,376
Anixter International Inc 1,885 71,969
Applied Signal Technology Inc 560 10,690
Black Box Corp 903 38,802
Boston Communications Group* 889 1,671
C-COR Inc* 2,207 16,530
Commonwealth Telephone Enterprises Inc 1,151 46,316
Digital Insight Corp* 1,774 47,969
Ditech Communications Corp* 1,700 12,512
4Kids Entertainment Inc* 613 10,556
General Communication* 2,942 31,715
32
- --------------------------------------------------------------------------------
S&P SMALLCAP INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Harmonic Inc* 3,354 $ 19,789
Internet Security Systems* 2,484 56,436
Intrado Inc* 772 11,580
j2 Global Communications Inc* 1,188 44,586
MIVA Inc* 1,508 8,294
Napster Inc* 1,603 6,508
Thomas Nelson Inc 657 13,495
Netgear Inc* 1,200 26,604
Network Equipment Technologies Inc* 1,066 5,287
PC-Tel Inc* 942 8,214
Symmetricom Inc* 2,100 18,228
Tollgrade Communications Inc* 630 6,930
Verity Inc* 1,734 17,375
Viasat Inc* 1,352 32,096
WebEx Communications Inc* 2,260 58,263
Websense Inc* 1,177 58,721
Zix Corp 1,342 3,234
-----------
Total Communications 789,437
-----------
Consumer, Cyclical (18.18%)
Action Performance Cos Inc* 824 10,432
Advanced Marketing Services* 884 4,420
Angelica Corp 425 9,388
Applica Inc 1,097 2,216
Arctic Cat Inc 1,013 21,850
Argosy Gaming Co* 1,511 70,503
Ashworth Inc* 600 4,950
Audiovox Corp* 1,050 18,984
Aztar Corp* 1,772 59,185
Bally Total Fitness Holding Corp* 1,577 5,661
Bassett Furniture Industries Inc 556 10,542
Bell Microproducts Inc* 1,276 12,926
Brown Shoe Co Inc 932 33,366
Building Material Holding Corp 640 59,827
Burlington Coat Factory Warehouse Corp 1,690 64,828
CEC Entertainment Inc* 1,917 65,734
Casey's General Stores Inc 2,565 51,941
Cash America International Inc 1,344 28,184
Cato Corp/The 1,462 28,363
Champion Enterprises Inc* 3,614 48,175
Childrens Place Retail Stores Inc/The* 1,078 44,101
Christopher & Banks Corp 1,875 30,131
Coachmen Industries Inc 746 10,049
Cost Plus Inc* 1,125 24,199
Department 56* 632 8,210
Dress Barn Inc* 1,408 33,792
Electronics Boutique Holdings Corp* 954 61,151
Enesco Group Inc* 652 1,089
Ethan Allen Interiors Inc 1,913 61,637
Fedders Corp 1,460 3,314
Finish Line 2,500 36,050
Fleetwood Enterprises Inc* 2,730 27,600
Fred's Inc 2,010 28,160
Frontier Airlines Inc* 1,612 17,490
G&K Services Inc 1,071 46,021
GameStop Corp* 2,600 78,364
Genesco Inc* 1,118 44,396
Goody's Family Clothing Inc 1,499 10,388
Group 1 Automotive Inc* 1,153 34,129
Guitar Center Inc* 1,249 71,693
Gymboree Corp* 1,569 24,116
Haggar Corp 300 6,942
Hancock Fabrics Inc 863 4,919
Haverty Furniture Cos Inc 1,157 14,416
Hibbett Sporting Goods Inc* 1,203 40,469
HOT Topic Inc* 2,397 37,154
Hughes Supply Inc 3,542 112,104
Ihop Corp 1,098 44,096
Insight Enterprises Inc* 2,482 46,736
Interface Inc* 2,381 24,167
J Jill Group Inc/The* 1,026 18,181
Jack in the Box Inc* 1,872 66,025
Jakks Pacific Inc* 1,204 19,998
Jo-Ann Stores Inc* 1,070 23,005
K-Swiss Inc 1,813 55,550
K2 Inc* 1,826 22,734
Kellwood Co 1,393 34,101
La-Z-Boy Inc 2,673 38,464
Landry's Restaurants Inc 1,426 41,682
Libbey Inc 640 11,270
Linens 'n Things Inc* 2,240 52,864
Lone Star Steakhouse & Saloon Inc 1,092 28,818
Longs Drug Stores Corp 1,914 81,154
MDC Holdings Inc 1,974 150,774
M/I Homes Inc 700 39,445
Marcus Corp 1,435 27,667
Men's Wearhouse Inc* 2,743 83,607
Meritage Homes Corp 1,350 105,692
Mesa Air Group Inc* 1,462 11,550
Mobile Mini Inc* 664 27,835
Monaco Coach Corp 1,505 23,132
Movie Gallery Inc 1,719 30,925
Multimedia Games Inc* 1,431 14,439
NVR Inc* 240 212,400
National Presto Industries Inc 327 14,581
Nautilus Inc 1,674 43,072
O'Charleys Inc* 966 15,833
Oshkosh Truck Corp 4,018 161,162
Owens & Minor Inc 2,015 57,750
Oxford Industries Inc 832 38,813
PF Chang's China Bistro Inc* 1,312 67,148
Panera Bread Co* 1,547 86,230
Papa John's International Inc* 832 39,786
Pegasus Solutions Inc* 1,159 11,358
PEP Boys-Manny Moe & Jack 3,075 40,160
Phillips-Van Heusen 1,978 66,243
Pinnacle Entertainment Inc* 1,726 34,416
Polaris Industries Inc 2,204 116,107
Quiksilver Inc* 5,824 88,816
Rare Hospitality International Inc* 1,744 46,635
Red Robin Gourmet Burgers Inc* 800 38,464
Russell Corp 1,674 30,450
Ryan's Restaurant Group Inc* 2,086 26,722
SCP Pool Corp 2,736 100,138
Scansource Inc* 643 28,716
School Specialty Inc* 975 46,712
Select Comfort Corp* 1,867 36,089
ShopKo Stores Inc 1,351 33,599
Shuffle Master Inc* 1,755 42,910
Skyline Corp 400 15,748
Skywest Inc 2,979 70,632
Sonic Corp* 3,046 93,177
Sonic Automotive Inc 2,073 48,612
Stage Stores Inc 1,338 37,210
Standard Motor Products Inc 916 9,481
Standard-Pacific Corp 3,490 153,316
Steak N Shake Co/The 1,277 24,978
Stein Mart Inc 2,160 52,834
Stride Rite Corp 1,831 23,620
Superior Industries International 1,200 26,700
TBC Corp* 1,135 30,248
Too Inc* 1,767 47,108
Toro Co 2,494 96,842
Tractor Supply Co* 1,961 100,913
Triarc Cos Inc 3,265 48,975
Ultimate Electronics Inc* 680 20
United Stationers Inc 1,737 81,465
WMS Industries Inc 1,545 44,743
Wabash National Corp 1,723 35,873
Watsco Inc 1,366 66,606
Winnebago Industries 1,700 51,799
Wolverine World Wide Inc 3,060 64,474
World Fuel Services Corp 1,200 39,240
Zale Corp* 2,667 74,409
-----------
Total Consumer, Cyclical 5,510,803
-----------
Consumer, Non-cyclical (16.99%)
ABM Industries Inc 2,508 49,734
Aaron Rents Inc 2,547 56,416
Administaff Inc 1,236 44,459
Advanced Neuromodulation Systems Inc 1,100 56,639
Advanced Medical Optics Inc* 100 3,936
Alliance One International Inc 4,676 18,704
Alpharma Inc 2,687 71,528
Amedisys Inc* 743 29,066
American Healthways Inc* 1,671 73,023
American Italian Pasta Co 860 9,486
American Medical Systems Holdings Inc* 3,420 70,110
AMERIGROUP Corp* 2,538 86,698
Amsurg Corp* 1,551 43,180
Arbitron Inc 1,587 66,654
Arqule Inc* 1,302 9,947
Arthrocare Corp* 1,179 42,880
Biolase Technology Inc* 1,245 6,972
33
- --------------------------------------------------------------------------------
S&P SMALLCAP INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Biosite Inc* 803 $ 48,011
Bowne & Co Inc 1,795 25,489
Bradley Pharmaceuticals Inc* 786 8,363
CDI Corp 1,007 27,139
CPI Corp 380 6,574
Cambrex Corp 1,239 23,566
Centene Corp* 2,078 63,337
Central Parking Corp 1,868 29,683
Chemed Corp 1,244 50,332
Coinstar Inc* 1,000 19,190
Conmed Corp* 1,525 44,622
Connetics Corp* 1,800 34,308
Consolidated Graphics Inc* 696 26,873
Cooper Cos Inc/The 2,376 162,922
Corn Products International Inc 3,742 84,270
Cross Country Healthcare Inc* 1,640 31,816
CryoLife Inc* 1,113 8,681
Curative Health Services Inc* 589 1,331
Cyberonics Inc* 1,199 45,898
DJ Orthopedics Inc* 1,097 30,442
Datascope Corp 759 24,554
Delta & Pine Land Co 1,965 50,363
Diagnostic Products Corp 1,491 80,514
Enzo Biochem Inc* 1,519 24,061
Flowers Foods Inc 2,891 78,722
Fossil Inc* 3,020 66,410
Gentiva Health Services Inc 1,227 23,239
Great Atlantic & Pacific Tea Co* 1,519 38,552
Haemonetics Corp* 1,291 57,372
Hain Celestial Group Inc* 1,870 35,287
John H Harland Co 1,445 60,618
Healthcare Services Group 1,200 22,140
Heidrick & Struggles International Inc* 972 32,095
Hologic Inc* 1,046 50,449
Hooper Holmes Inc 3,007 12,690
ICU Medical Inc* 655 19,892
Idexx Laboratories Inc* 1,782 114,119
Immucor Inc 2,227 52,713
Integra LifeSciences Holdings Corp* 1,465 50,660
Invacare Corp 1,604 66,726
iPayment Inc* 600 23,310
J&J Snack Foods Corp 417 25,003
Kensey Nash Corp* 574 17,392
LCA-Vision Inc 973 39,942
Labor Ready Inc* 2,823 64,139
LabOne Inc* 856 37,005
Lance Inc 1,352 22,984
MGI Pharma Inc* 3,614 97,433
MAXIMUS Inc 1,113 41,916
Medicis Pharmaceutical Corp 2,912 99,037
Mentor Corp 1,955 102,833
Merit Medical Systems Inc* 1,295 22,624
Midas Inc* 700 14,770
NBTY Inc* 3,425 74,973
NCO Group Inc* 1,615 33,883
Nash Finch Co 581 24,402
Natures Sunshine Prods Inc 669 14,450
Noven Pharmaceuticals Inc* 1,200 19,992
OCA Inc* 2,332 3,032
Odyssey HealthCare Inc* 1,878 31,363
On Assignment Inc* 1,167 8,087
Osteotech Inc* 821 4,581
PRG-Schultz International Inc* 2,943 9,624
Parexel International Corp* 1,339 25,950
Pediatrix Medical Group Inc* 1,257 93,181
Peet's Coffee & Tea Inc* 600 18,762
Performance Food Group Co* 1,978 61,259
Pharmaceutical Product Development Inc* 2,885 162,339
PolyMedica Corp 1,391 49,728
Possis Medical Inc* 932 12,144
Pre-Paid Legal Services Inc 840 34,012
Priority Healthcare Corp* 2,227 62,111
Ralcorp Holdings Inc 1,500 66,525
Regeneron Pharmaceuticals Inc* 2,656 19,840
RehabCare Group Inc* 746 16,763
Resmed Inc* 1,735 125,510
Respironics Inc* 3,574 139,958
Rewards Network Inc 1,161 7,349
Russ Berrie & Co Inc 958 16,047
SFBC International Inc* 739 30,055
Sanderson Farms Inc 1,018 37,595
Savient Pharmaceuticals Inc* 2,760 11,150
Sierra Health Services Inc* 1,532 103,104
Sourcecorp* 750 15,368
Spectrum Brands Inc* 2,267 63,816
Spherion Corp* 3,098 22,832
Standard Register Co/The 1,313 20,601
Startek Inc 740 9,923
Sunrise Senior Living Inc* 1,050 62,360
SurModics Inc* 809 30,046
Sybron Dental Specialties Inc* 1,978 76,687
Theragenics Corp* 1,389 4,306
TreeHouse Foods Inc* 1,600 48,160
USANA Health Sciences Inc* 500 26,000
United Natural Foods Inc* 2,000 68,000
United Surgical Partners International Inc* 2,163 82,865
Vertrue Inc* 521 17,990
Viad Corp 1,109 32,239
Viasys Healthcare Inc* 1,579 42,522
Vital Signs Inc 595 26,757
Volt Information Sciences Inc* 731 16,594
WD-40 Co 826 23,822
Watson Wyatt & Co Holdings 2,252 61,412
-----------
Total Consumer, Non-cyclical 5,151,912
-----------
Energy (8.11%)
Atwood Oceanics Inc* 711 53,489
Cabot Oil & Gas Corp 2,532 109,357
Cal Dive International Inc* 1,961 122,484
CARBO Ceramics Inc 1,224 73,636
Cimarex Energy Co* 4,323 184,765
Dril-Quip Inc* 800 33,616
Frontier Oil Corp 2,722 99,761
Headwaters Inc* 2,223 85,586
Hydril* 1,174 80,419
Input/Output Inc* 3,753 32,426
Lone Star Technologies Inc* 1,476 81,623
Massey Energy Co 3,894 197,815
Maverick Tube Corp* 2,172 69,178
Oceaneering International Inc* 1,280 63,642
Penn Virginia Corp 900 50,472
Petroleum Development Corp* 815 30,970
Remington Oil & Gas Corp* 1,386 53,403
St Mary Land & Exploration Co 2,928 100,928
SEACOR Holdings Inc* 1,351 96,597
Southwestern Energy Co* 3,902 225,926
Spinnaker Exploration Co* 1,730 77,798
Stone Energy Corp* 1,367 71,617
Swift Energy Co* 1,422 65,312
Tetra Technologies Inc* 1,718 48,949
Unit Corp 2,346 122,133
Veritas DGC Inc* 1,715 55,154
Vintage Petroleum Inc 3,319 127,549
W-H Energy Services Inc* 1,408 45,690
-----------
Total Energy 2,460,295
-----------
Financial (13.66%)
Acadia Realty Trust 1,700 30,090
Amegy Bancorp Inc 3,522 79,139
Anchor Bancorp Wisconsin Inc 1,149 35,010
BankAtlantic Bancorp Inc 3,100 52,855
Bankunited Financial Corp 1,538 36,297
Boston Private Financial Holdings Inc 1,401 37,225
Brookline Bancorp Inc 3,028 46,752
Capital Automotive REIT 2,257 80,959
Central Pacific Financial Corp 1,600 55,328
Chittenden Corp 2,361 63,653
Colonial Properties Trust 2,086 91,993
Commercial Federal Corp 2,035 69,007
Commercial Net Lease Realty 2,652 52,960
Community Bank System Inc 1,600 37,808
CRT Properties Inc 1,345 37,620
Delphi Financial Group 1,614 76,019
Dime Community Bancshares 1,914 29,112
Downey Financial Corp 1,234 78,211
East West Bancorp Inc 2,806 95,236
EastGroup Properties Inc 1,200 51,768
Entertainment Properties Trust 1,184 53,943
Essex Property Trust Inc 1,174 103,253
Financial Federal Corp 859 33,544
First Bancorp 4,128 76,203
First Midwest Bancorp Inc 2,389 90,639
First Republic Bank 1,219 43,884
FirstFed Financial Corp 870 50,069
34
- --------------------------------------------------------------------------------
S&P SMALLCAP INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Flagstar Bancorp Inc 2,522 $ 43,505
Fremont General Corp 3,956 90,276
Gables Residential Trust 1,501 65,384
Glenborough Realty Trust Inc 1,638 32,842
Gold Banc Corp Inc 2,056 31,169
Hilb Rogal & Hobbs Co 1,850 65,157
Hudson United Bancorp 2,303 97,302
Infinity Property & Casualty Corp 1,100 35,772
Investment Technology Group Inc* 2,351 64,535
Irwin Financial Corp 1,450 30,450
Kilroy Realty Corp 1,457 76,798
LandAmerica Financial Group Inc 971 57,406
Lexington Corporate Properties Trust 2,470 56,810
MAF Bancorp Inc 1,677 71,994
Nara Bancorp Inc 1,163 16,201
New Century Financial Corp 2,782 119,598
Parkway Properties Inc 565 27,312
Philadelphia Consolidated Holding Co* 1,130 87,790
Piper Jaffray Cos* 1,018 31,039
Presidential Life Corp 1,505 26,473
ProAssurance Corp* 1,496 65,899
PrivateBancorp Inc 1,017 34,934
Provident Bankshares Corp 1,686 57,577
RLI Corp 1,292 59,561
Republic Bancorp Inc 3,613 53,039
SCPIE Holdings Inc* 473 6,650
SWS Group Inc 787 12,820
Selective Insurance Group 1,422 67,317
Shurgard Storage Centers Inc 2,359 130,689
South Financial Group Inc/The 3,940 114,733
Sovran Self Storage Inc 759 35,218
Sterling Bancshares Inc 2,297 34,432
Sterling Financial Corp 1,159 44,703
Stewart Information Services Corp 928 44,609
Susquehanna Bancshares Inc 2,363 59,548
Trustco Bank Corp 3,818 50,779
UCBH Holdings Inc 4,634 88,370
UICI 2,373 73,231
Umpqua Holdings Corp 2,193 53,400
United Bankshares Inc 2,234 79,084
Whitney Holding Corp 3,126 96,656
Wintrust Financial Corp 1,238 63,807
World Acceptance Corp* 952 24,362
Zenith National Insurance Corp 1,182 74,643
-----------
Total Financial 4,142,451
-----------
Industrial (18.19%)
AAR Corp* 1,478 26,013
Acuity Brands Inc 2,185 64,523
Advanced Energy Industries Inc* 1,553 18,512
Albany International Corp 1,699 61,198
Aleris International Inc* 1,365 32,337
Analogic Corp 700 34,895
Apogee Enterprises Inc 1,275 20,477
Applied Industrial Technologies Inc 1,491 53,542
Aptargroup Inc 1,875 93,244
Arkansas Best Corp 1,281 43,131
Armor Holdings Inc* 1,673 70,952
Artesyn Technologies Inc* 1,796 16,487
Astec Industries Inc* 914 28,380
BEI Technologies Inc 675 23,551
Baldor Electric Co 1,689 41,668
Barnes Group Inc 1,185 40,883
Bel Fuse Inc 579 18,626
Belden CDT Inc 2,364 50,708
Benchmark Electronics Inc* 2,106 61,306
Brady Corp 2,444 76,277
Briggs & Stratton Corp 2,704 99,778
C&D Technologies Inc 1,187 12,119
CTS Corp 1,721 21,409
AM Castle & Co 759 11,537
Ceradyne Inc* 1,221 38,559
Checkpoint Systems Inc 1,928 42,127
Chesapeake Corp 1,001 19,520
Clarcor Inc 2,604 73,693
Cognex Corp 2,320 69,020
Coherent Inc* 1,549 49,243
Commercial Metals Co 2,978 89,132
Cubic Corp 1,371 25,295
Curtiss-Wright Corp 1,077 69,531
Cymer Inc* 1,886 63,181
DRS Technologies Inc 1,487 76,506
Daktronics Inc 943 20,623
Dionex Corp* 1,077 56,758
EGL Inc* 2,382 59,764
EDO Corp 1,023 28,736
Electro Scientific Industries Inc* 1,341 29,743
ElkCorp 1,011 35,992
EMCOR Group Inc* 776 42,789
Engineered Support Systems Inc 2,004 68,336
EnPro Industries Inc* 1,100 37,840
Esterline Technologies Corp* 1,086 47,404
FEI Co* 1,705 35,686
Flir Systems Inc* 3,450 111,401
Florida Rock Industries Inc 2,928 165,725
Forward Air Corp 1,656 58,424
Gardner Denver Inc* 1,313 54,910
GenCorp Inc* 2,284 43,053
Gerber Scientific Inc* 1,029 7,100
Greatbatch Inc* 1,017 25,425
Griffon Corp* 1,420 36,409
Heartland Express Inc 3,249 64,720
IDEX Corp 2,573 111,926
Insituform Technologies Inc* 1,227 25,399
Intermagnetics General Corp* 1,294 37,798
Intermet Corp* 1,230 49
Itron Inc* 1,270 58,763
JLG Industries Inc 2,741 89,877
Kaman Corp 1,048 25,142
Kansas City Southern* 4,315 86,775
Kaydon Corp 1,447 41,833
Keithley Instruments Inc 720 10,404
Kirby Corp* 1,258 59,126
Knight Transportation Inc 2,890 68,464
Landstar System Inc 3,058 111,067
Lawson Products 456 17,738
Lennox International Inc 3,019 73,633
Lindsay Manufacturing Co 549 13,890
Littelfuse Inc* 1,132 31,492
Lydall Inc* 745 6,534
Magnetek Inc* 1,366 4,412
Manitowoc Co 1,371 63,889
Meade Instruments Corp* 955 2,311
Methode Electronics Inc 1,654 20,377
Milacron Inc* 3,713 7,092
Moog Inc* 2,002 63,083
Mueller Industries Inc 1,795 47,047
Myers Industries Inc 1,536 18,893
NCI Building Systems Inc* 1,100 41,470
Offshore Logistics Inc 1,161 42,040
Old Dominion Freight Line* 1,000 31,980
Park Electrochemical Corp 1,018 24,585
Paxar Corp* 2,034 38,260
Photon Dynamics Inc* 781 15,230
Planar Systems Inc* 664 5,093
Quanex Corp 1,264 77,749
Regal-Beloit Corp 1,574 52,524
Robbins & Myers Inc 666 14,605
Rogers Corp* 850 33,210
Roper Industries Inc 4,608 177,500
SBS Technologies Inc* 723 6,984
Shaw Group Inc/The* 4,144 87,438
Simpson Manufacturing Co Inc 2,190 81,534
AO Smith Corp 1,508 42,435
Sonic Solutions Inc* 1,173 23,178
Standex International Corp 564 15,025
Stewart & Stevenson Services Inc 1,474 35,921
Sturm Ruger & Co Inc 1,292 12,313
Technitrol Inc 2,070 30,367
Teledyne Technologies Inc* 1,666 64,358
Tetra Tech Inc* 2,868 45,228
Texas Industries Inc 1,086 64,954
Timken Co 4,588 134,750
Tredegar Corp 1,971 24,480
Trimble Navigation Ltd* 2,600 94,952
Triumph Group Inc* 814 31,966
URS Corp 2,204 83,047
Universal Forest Products Inc 881 47,953
Valmont Industries Inc 1,224 35,190
Vicor Corp 2,151 34,308
Waste Connections Inc* 2,239 79,126
Watts Water Technologies Inc 1,655 56,038
Wolverine Tube Inc* 570 4,007
Woodward Governor Co 579 47,217
35
- --------------------------------------------------------------------------------
S&P SMALLCAP INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
X-Rite Inc 987 $ 12,426
-----------
Total Industrial 5,514,653
-----------
Technology (8.44%)
ATMI Inc* 2,001 61,691
Actel Corp* 1,218 16,760
Agilysys Inc 1,491 26,763
Alliance Semiconductor Corp* 1,688 4,524
Altiris Inc* 1,400 18,270
Ansys Inc* 1,576 59,494
Avid Technology Inc* 2,199 82,133
Axcelis Technologies Inc* 5,102 30,102
Brooks Automation Inc* 2,287 32,475
Brooktrout Inc* 598 7,654
CACI International Inc* 1,495 93,647
Captaris Inc* 1,544 5,759
Carreker Corp* 1,093 6,962
Catapult Communications Corp* 597 9,504
Cerner Corp* 1,835 144,525
Ciber Inc* 2,938 23,034
Cohu Inc 984 24,029
DSP Group Inc* 1,496 38,103
Dendrite International Inc* 2,129 38,556
Digi International Inc* 989 10,493
EPIQ Systems Inc* 854 15,679
ESS Technology* 1,795 6,857
eFunds Corp* 2,455 47,873
Exar Corp* 1,952 30,471
Factset Research Systems Inc 2,034 71,190
Filenet Corp* 1,998 53,087
Global Imaging Systems Inc* 1,177 38,900
Global Payments Inc 1,943 127,811
Helix Technology Corp 1,211 18,964
Hutchinson Technology Inc* 1,338 35,323
Hyperion Solutions Corp* 2,001 86,783
Imagistics International Inc* 812 27,161
Inter-Tel Inc 1,318 29,194
JDA Software Group Inc* 1,393 19,711
Kopin Corp* 3,225 20,866
Kronos Inc* 1,593 69,025
Kulicke & Soffa Industries Inc* 2,607 21,795
MRO Software Inc* 1,139 19,215
MTS Systems Corp 1,024 42,209
Manhattan Associates Inc* 1,548 32,725
Mantech International Corp* 1,539 47,724
Mapinfo Corp* 1,036 11,728
Mercury Computer Systems Inc* 1,010 26,391
Micros Systems Inc* 1,900 84,721
Microsemi Corp 3,051 73,499
NDCHealth Corp* 1,848 34,761
NYFIX Inc* 1,527 9,910
Pericom Semiconductor Corp* 1,192 10,502
Phoenix Technologies Ltd* 1,166 8,710
Photronics Inc* 2,089 43,389
Power Integrations Inc* 1,578 34,905
Progress Software Corp* 1,849 56,690
Radiant Systems Inc* 1,286 15,188
Radisys Corp* 829 15,477
Rudolph Technologies Inc* 760 11,149
SPSS Inc* 804 17,527
Serena Software Inc* 2,279 43,028
Skyworks Solutions Inc 7,682 57,922
SS&C Technologies Inc 900 32,841
Standard Microsystems Corp* 864 22,507
Supertex Inc* 590 17,110
Synaptics Inc* 1,300 21,450
THQ Inc* 1,990 66,884
Take-Two Interactive Software Inc* 3,454 82,205
Talx Corp 940 33,520
Ultratech Inc* 1,126 17,205
Varian Semiconductor Equipment Assoc. Inc* 1,863 84,413
Veeco Instruments Inc* 1,520 27,922
-----------
Total Technology 2,558,595
-----------
Utilities (4.15%)
Allete Inc 1,480 66,970
American States Water Co 745 23,862
Atmos Energy Corp 4,238 125,402
Avista Corp 2,483 48,270
CH Energy Group Inc 808 38,865
Cleco Corp 2,440 56,120
Cascade Natural Gas Corp 520 10,873
Central Vermont Public Service Corp 573 10,944
El Paso Electric Co* 2,442 51,184
Energen Corp 3,730 142,934
Green Mountain Power Corp 231 7,011
Laclede Group Inc/The 1,063 34,356
New Jersey Resources Corp 1,414 66,430
Northwest Natural Gas Co 1,401 51,529
Piedmont Natural Gas Co 3,920 96,275
Southern Union Co 5,507 135,589
Southwest Gas Corp 1,779 48,780
UGI Corp 5,210 144,035
UIL Holdings Corp 744 39,402
Unisource Energy Corp 1,752 58,310
-----------
Total Utilities 1,257,141
-----------
Total Common Stock (Cost $19,521,876) 28,253,191
-----------
Par Value
---------
Corporate Debt (0.05%)
15,000 Mueller Industries 11/01/14 $ 14,944
-----------
Total Corporate Debt (Cost $15,000) 14,944
-----------
Short-Term Investments (6.58%)
$ 300,000 United States Treasury Bills 09/08/05(b) 299,824
1,600,000 United States Treasury Bills 10/06/05 1,594,894
100,000 United States Treasury Bills 11/17/05 99,260
-----------
Total Short-Term Investments (Cost $1,993,978) 1,993,978
-----------
Total Investments (Cost $21,530,854)(a)(99.81%) 30,262,113
Other Assets (0.19%) 57,526
-----------
Net Assets (100.00%) $30,319,639
===========
* Non-Income Producing Securit
(a) Aggregate cost for federal income tax purposes is $21,530,854. At August
31, 2005, unrealized appreciation (depreciation) of securities for federal
income tax purpose is as follows:
Unrealized appreciation $10,417,225
Unrealized depreciation (1,685,966)
-----------
Net unrealized appreciation $ 8,731,259
===========
(b) At August 31, 2005, certain United States Treasury Bills with a market
value of $199,872 were pledged to cover margin requirements for futures
contracts.
(c) Futures contracts at August 31, 2005:
(Contracts-$500 times premium/delivery month/commitment)
Unrealized
Appreciation
(Depreciation)
Russell 2000 Stock Index:
6/Sept 05/Long $ 113,447
===========
See accompanying notes to financial statements
36
- --------------------------------------------------------------------------------
EQUITY INCOME FUND PORTFOLIO OF INVESTMENTS 8/31/2005
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Common Stock (88.67%)
Basic Materials (2.99%)
Chemicals (1.30%)
Praxair Inc 3,692 $ 178,324
Sherwin-Williams Co/The 1,746 80,945
-----------
259,269
-----------
Forest Products&Paper (0.92%)
Plum Creek Timber Co Inc 4,950 181,913
Mining (0.77%)
Alcoa Inc 5,750 154,043
-----------
Total Basic Materials 595,225
-----------
Communications (3.89%)
Media (2.59%)
McGraw-Hill Cos Inc/The 10,678 514,893
Telecommunications (1.30%)
SBC Communications Inc 10,744 258,716
-----------
Total Communications 773,609
-----------
Consumer, Cyclical (10.79%)
Apparel (0.63%)
Liz Claiborne Inc 3,036 124,567
Auto Manufacturers (2.01%)
Ford Motor Co 40,100 399,797
Retail (8.15%)
Gap Inc/The 4,450 84,595
Lowe's Cos Inc 5,750 369,783
McDonald's Corp 12,368 401,342
Ross Stores Inc 3,692 91,857
Sears Holdings Corp* 717 97,412
TJX Cos Inc 5,750 120,233
Target Corp 5,639 303,096
Wal-Mart Stores Inc 3,381 152,010
-----------
1,620,328
-----------
Total Consumer, Cyclical 2,144,692
-----------
Consumer, Non-cyclical (15.61%)
Agriculture (1.03%)
Reynolds American Inc 2,446 205,317
Beverages (2.44%)
Anheuser-Busch Cos Inc 3,036 134,525
Coca-Cola Co/The 8,000 352,000
-----------
486,525
-----------
Commercial Services (1.51%)
Moody's Corp 6,092 299,178
Cosmetics/Personal Care (0.89%)
Procter & Gamble Co 3,180 176,426
Food (2.56%)
Sara Lee Corp 12,300 233,700
Tyson Foods Inc 15,472 275,092
-----------
508,792
-----------
Healthcare-Products (2.11%)
Baxter International Inc 10,411 419,876
Healthcare-Services (1.40%)
Aetna Inc 3,492 278,208
Household Products/Wares (1.17%)
ACCO Brands Corp* 410 10,701
Clorox Co 1,201 69,142
Fortune Brands Inc 1,746 151,867
-----------
231,710
-----------
Pharmaceuticals (2.50%)
AmerisourceBergen Corp 2,803 209,300
Pfizer Inc 11,300 287,811
-----------
497,111
-----------
Total Consumer, Non-cyclical 3,103,143
-----------
Energy (12.54%)
Oil&Gas (11.38%)
Apache Corp 4,126 295,504
Chevron Corp 3,140 192,796
ConocoPhillips 7,348 484,527
Devon Energy Corp 4,752 288,779
ENSCO International Inc 3,370 137,698
Exxon Mobil Corp 6,236 373,536
Valero Energy Corp 3,386 360,609
GlobalSantaFe Corp 2,725 127,748
-----------
2,261,197
-----------
Oil&Gas Services (1.16%)
Baker Hughes Inc 2,280 133,950
Tidewater Inc 2,180 97,097
-----------
231,047
-----------
Total Energy 2,492,244
-----------
Financial (24.01%)
Banks (6.98%)
Bank of America Corp 9,864 424,448
Fifth Third Bancorp 7,723 319,809
SunTrust Banks Inc 2,102 147,729
Wells Fargo & Co 8,297 494,667
-----------
1,386,653
-----------
Diversified Finan Serv (3.09%)
Citigroup Inc 10,411 455,689
MBNA Corp 6,295 158,634
-----------
614,323
-----------
Insurance (6.98%)
American International Group Inc 4,225 250,120
Fidelity National Financial Inc 2,994 117,125
Arthur J Gallagher & Co 6,200 177,072
Marsh & McLennan Cos Inc 8,600 241,230
Metlife Inc 5,928 290,353
Stancorp Financial Group Inc 2,825 228,401
XL Capital Ltd 1,201 83,470
-----------
1,387,771
-----------
REITS (6.96%)
Annaly Mortgage Management Inc 7,408 112,602
Boston Properties Inc 1,746 124,228
iStar Financial Inc 3,704 153,605
Kimco Realty Corp 4,026 127,302
Mills Corp/The 3,804 222,686
Realty Income Corp 7,408 176,533
SL Green Realty Corp 2,280 150,776
Simon Property Group Inc 2,180 165,833
Vornado Realty Trust 1,746 150,191
-----------
1,383,756
-----------
Total Financial 4,772,503
-----------
Industrial (4.93%)
Building Materials (0.59%)
Masco Corp 3,804 116,707
Hand/Machine Tools (0.52%)
Stanley Works/The 2,280 104,310
Machinery-Constr&Mining (1.20%)
Caterpillar Inc 4,292 238,163
Metal Fabricate/Hardware (0.77%)
Worthington Industries 8,400 152,040
Miscellaneous Manufacturer (1.85%)
ITT Industries Inc 1,067 116,431
Leggett & Platt Inc 2,725 65,972
3M Co 2,612 185,844
-----------
368,247
-----------
Total Industrial 979,467
-----------
37
- --------------------------------------------------------------------------------
EQUITY INCOME FUND PORTFOLIO OF INVESTMENTS 8/31/2005
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Technology (8.39%)
Computers (3.55%)
Dell Inc* 9,949 $ 354,184
Diebold Inc 1,746 83,808
Hewlett-Packard Co 5,750 159,620
Reynolds & Reynolds Co/The 3,804 108,566
-----------
706,178
-----------
Office/Business Equip (0.50%)
Pitney Bowes Inc 2,280 98,610
Semiconductors (1.72%)
Intel Corp 13,263 341,124
Software (2.62%)
First Data Corp 8,609 357,704
Microsoft Corp 5,973 163,660
-----------
521,364
-----------
Total Technology 1,667,276
-----------
Utilities (5.52%)
Electric (5.52%)
Calpine Corp* 43,241 132,750
Cinergy Corp 2,180 96,007
Consolidated Edison Inc 6,200 290,842
Entergy Corp 1,746 130,793
Exelon Corp 3,146 169,538
Progress Energy Inc 1,579 68,829
SCANA Corp 4,900 207,711
-----------
1,096,470
-----------
Total Utilities 1,096,470
-----------
Total Common Stock (Cost $13,815,896) 17,624,629
-----------
Par Value
---------
Short-Term Investments (11.04%)
$ 400,000 United States Treasury Bills 09/08/05(b) 399,763
1,600,000 United States Treasury Bills 10/06/05 1,594,947
100,000 United States Treasury Bills 10/27/05 99,476
100,000 United States Treasury Bills 11/17/05 99,260
-----------
Total Short-Term Investments (Cost $2,193,447) 2,193,446
-----------
Total Investments (Cost $16,009,343)(a)(99.71%) 19,818,075
Other Assets (0.29%) 57,557
-----------
Net Assets (100.00%) $19,875,632
===========
* Non-Income Producing Security
(a) Aggregate cost for federal income tax purposes is $16,009,343. At August
31, 2005, unrealized appreciation (depreciation) of securities for federal
income tax purpose is as follows:
Unrealized appreciation $ 4,546,559
Unrealized depreciation (737,827)
-----------
Net unrealized appreciation $ 3,808,732
===========
(b) At August 31, 2005, certain United States Treasury Bills with a market
value of $199,872 were pledged to cover margin requirements for futures
contracts.
(c) Futures contracts at August 31, 2005: (Contracts-$250 times
premium/delivery month/commitment)
Unrealized
Appreciation
(Depreciation)
Russell 2000 Index:
4/Sept 05/Long $ 22,282
===========
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
EUROPEAN GROWTH & PORTFOLIO OF INVESTMENTS 8/31/2005
INCOME FUND
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Common Stocks (98.72%)
Basic Materials (1.84%)
Chemicals (1.84%)
BASF AG ADR 1,344 $ 94,806
Bayer AG ADR 1,515 53,798
-----------
148,604
-----------
Total Basic Materials 148,604
-----------
Communications (16.65%)
Media (0.79%)
Vivendi Universal SA ADR 2,033 64,141
-----------
Telecommunications (15.86%)
Alcatel SA ADR* 1,772 20,679
BT Group PLC ADR 1,960 76,656
Deutsche Telekom AG ADR 6,525 124,497
Telefonaktiebolaget LM Ericsson ADR 3,694 128,921
Nokia OYJ ADR 15,228 240,146
Telecom Italia SpA ADR 2,647 83,804
Telefonica SA ADR 4,065 202,356
Vodafone Group PLC ADR 14,810 403,573
-----------
1,280,632
-----------
Total Communications 1,344,773
-----------
Consumer, Cycllical (1.24%)
Auto Manufacturers (1.24%)
DaimlerChrysler AG 1,935 100,001
-----------
Total Consumer, Cyclical 100,001
-----------
Consumer, Non-cyclical (20.51%)
Beverages (1.45%)
Diageo PLC ADR 2,035 117,440
-----------
Cosmetics/Personal Care (0.59%)
L'Oreal SA ADR 3,005 47,780
-----------
Food (5.31%)
Koninklijke Ahold NV ADR 9,773 87,273
Nestle SA ADR 3,465 242,030
Unilever NV 1,436 99,371
-----------
428,674
-----------
38
- --------------------------------------------------------------------------------
EUROPEAN GROWTH & PORTFOLIO OF INVESTMENTS 8/31/2005
INCOME FUND
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Pharmaceuticals (13.15%)
AstraZeneca PLC ADR 3,998 $ 184,388
GlaxoSmithKline PLC ADR 6,788 330,711
Novartis AG ADR 6,257 305,029
Roche Holding AG ADR 3,516 242,077
-----------
1,062,205
-----------
Total Consumer, Non-cyclical 1,656,099
-----------
Energy (21.41%)
Oil&Gas (21.41%)
BP PLC ADR 8,176 559,075
ENI SpA ADR 1,613 239,127
Royal Dutch Shell PLC ADR 3,235 219,139
Royal Dutch Shell PLC ADR 5,120 332,595
Total SA ADR 2,879 379,567
-----------
1,729,503
-----------
Total Energy 1,729,503
-----------
Financial (30.10%)
Banks (23.47%)
ABN AMRO Holding NV ADR 4,009 96,817
BNP Paribas ADR 3,552 128,050
Banco Bilbao Vizcaya Argentaria SA ADR 8,479 141,769
Banco Santander Central Hispano SA ADR 14,458 178,267
Barclays PLC ADR 7,651 308,335
Credit Suisse Group ADR 3,053 133,172
HSBC Holdings PLC ADR 5,249 424,329
Lloyds TSB Group PLC ADR 3,555 118,595
Deutsche Bank AG 1,496 130,137
UBS AG 2,875 236,038
-----------
1,895,509
-----------
Insurance (6.63%)
Aegon NV 2,886 40,779
Allianz AG ADR 9,057 117,832
AXA SA ADR 3,684 98,363
ING Groep NV ADR 4,832 141,191
Prudential PLC ADR 2,089 38,876
Royal & Sun Alliance Insurance Group ADR 1,727 14,610
Swiss Reinsurance ADR 960 61,392
Zurich Financial Services AG ADR 1,265 22,138
-----------
535,181
-----------
Total Financial 2,430,690
-----------
Industrial (3.10%)
Electronics (0.98%)
Koninklijke Philips Electronics NV 2,984 79,225
-----------
Miscellaneous Manufacturer (2.12%)
Siemens AG ADR 2,235 170,977
-----------
Total Industrial 250,202
-----------
Technology (1.04%)
Software (1.04%)
SAP AG ADR 1,967 83,931
-----------
Total Technology 83,931
-----------
Utilities (2.84%)
Electric (2.07%)
E.ON AG ADR 5,235 166,996
-----------
Water (0.77%)
Suez SA ADR 2,137 62,656
-----------
Total Utilities 229,652
-----------
Total Common Stock (Cost $6,994,695) 7,973,455
-----------
Total Investments (Cost $6,994,695)(a)(98.72%) 7,973,455
Other Net Assets (1.28%) 103,045
-----------
Net Assets (100.00%) $ 8,076,500
===========
* Non-Income Producing Security
ADR - American Depository Receipts
(a) Aggregate cost for federal income tax purposes is $6,995,255. At August
31, 2005, unrealized appreciation (depreciation) of securities for federal
income tax purpose is as follows:
Unrealized appreciation $ 1,432,524
Unrealized depreciation (454,324)
-----------
Net unrealized appreciation $ 978,200
===========
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
NASDAQ-100 INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
Common Stock (98.04%)
Basic Materials (0.53%)
Sigma-Aldrich Corp 968 $ 60,403
Smurfit-Stone Container Corp* 3,522 38,883
-----------
Total Basic Materials 99,286
-----------
Communications (26.52%)
Amazon.Com Inc* 3,825 163,328
Cisco Systems Inc* 32,421 571,258
Comcast Corp* 13,517 415,648
Comverse Technology Inc* 2,942 75,845
eBay Inc* 14,332 580,303
EchoStar Communications Corp 3,155 94,429
Telefonaktiebolaget LM Ericsson ADR 1,600 55,840
IAC/InterActive Corp* 5,869 144,084
JDS Uniphase Corp* 22,545 35,847
Juniper Networks Inc* 4,839 110,039
Lamar Advertising Co* 1,224 49,229
Level 3 Communications Inc* 9,285 18,291
Liberty Global Inc* 3,400 172,550
MCI Inc* 4,700 120,508
NTL Inc* 1,300 83,044
Qualcomm Inc 28,068 1,114,580
Sirius Satellite Radio Inc* 20,400 140,352
Symantec Corp* 17,688 371,094
Tellabs Inc* 3,436 30,546
VeriSign Inc* 3,318 72,332
XM Satellite Radio Holdings Inc* 3,100 109,275
Yahoo! Inc* 9,517 317,297
Check Point Software Technologies* 3,587 80,923
-----------
Total Communications 4,926,642
-----------
Consumer, Cyclical (10.26%)
Bed Bath & Beyond Inc* 5,723 232,068
39
- --------------------------------------------------------------------------------
NASDAQ-100 INDEX FUND PORTFOLIO OF INVESTMENTS 8/31/2005
CONTINUED
Company Shares Value (Note 1)
- --------------------------------------------------------------------------------
CDW Corp 1,224 $ 72,314
Cintas Corp 2,913 120,161
Costco Wholesale Corp 3,439 149,390
Dollar Tree Stores Inc* 1,584 36,068
Fastenal Co 1,054 63,851
Paccar Inc 2,754 193,000
Petsmart Inc 2,060 53,086
Ross Stores Inc 2,056 51,153
Sears Holdings Corp* 2,500 339,650
Staples Inc 7,098 155,872
Starbucks Corp* 7,619 373,636
Wynn Resorts Ltd* 1,400 66,808
-----------
Total Consumer, Cyclical 1,907,057
-----------
Consumer, Non-Cyclical (17.49%)
Amgen Inc 8,101 647,270
Apollo Group Inc* 2,622 206,247
Biomet Inc 4,843 178,658
Biogen Idec Inc* 5,289 222,931
Career Education Corp* 1,414 55,429
Celgene Corp* 2,400 120,480
Chiron Corp* 3,717 135,447
Dentsply International Inc 1,094 57,949
Express Scripts Inc* 1,844 106,694
Genzyme Corp* 4,486 319,269
Gilead Sciences Inc* 6,348 272,964
Invitrogen Corp* 742 62,870
Lincare Holdings Inc* 1,389 58,810
Medimmune Inc* 3,776 113,016
Millennium Pharmaceuticals Inc* 4,612 46,166
Patterson Cos Inc* 1,906 76,354
Paychex Inc 5,080 173,380
Sepracor Inc* 1,400 70,280
Teva Pharmaceutical Industries Ltd ADR 6,584 213,585
Whole Foods Market Inc 869 112,327
-----------
Total Consumer, Non-cyclical 3,250,126
-----------
Industrial (2.69%)
American Power Conversion Corp 2,777 72,674
CH Robinson Worldwide Inc 1,223 75,520
Expeditors International Washington Inc 1,500 83,265
Molex Inc 1,429 38,240
Sanmina-SCI Corp* 7,670 38,887
Garmin Ltd 1,391 80,539
Flextronics International Ltd* 8,478 110,723
-----------
Total Industrial 499,848
-----------
Technology (40.53%)
ATI Technologies Inc* 3,325 40,499
Adobe Systems Inc 6,654 179,924
Altera Corp* 7,208 157,639
Apple Computer Inc* 16,300 764,959
Applied Materials Inc 12,109 221,716
Autodesk Inc* 3,200 138,240
BEA Systems Inc* 5,204 45,899
Broadcom Corp* 3,624 157,644
Citrix Systems Inc* 2,835 67,473
Cognizant Technology Solutions Corp* 1,800 81,954
Dell Inc* 12,659 450,660
Electronic Arts Inc* 4,382 251,001
Fiserv Inc* 3,459 155,205
Intel Corp 30,772 791,456
Intersil Corp 1,947 40,887
Intuit Inc* 3,416 156,589
Kla-Tencor Corp 3,369 171,010
Lam Research Corp* 1,871 59,311
Linear Technology Corp 5,819 220,715
Maxim Integrated Products Inc 6,384 272,278
Mercury Interactive Corp* 1,482 54,345
Microsoft Corp 52,922 1,450,063
Microchip Technology Inc 2,516 78,298
Network Appliance Inc* 5,156 122,403
Novellus Systems Inc* 2,060 55,229
Oracle Corp* 30,526 395,922
Pixar* 1,616 70,942
QLogic Corp* 1,377 47,589
Research In Motion Ltd* 2,578 201,832
SanDisk Corp* 2,324 90,241
Siebel Systems Inc 8,163 67,345
Sun Microsystems Inc* 20,014 76,053
Synopsys Inc* 2,087 39,653
Xilinx Inc 6,348 178,315
Marvell Technology Group Ltd* 3,756 177,246
-----------
Total Technology 7,530,535
-----------
Total Common Stock (Cost $20,186,830) 18,213,494
-----------
Par Value
---------
Short-Term Investments (1.61%)
$ 200,000 United States Treasury Bills 10/06/05 $ 199,362
100,000 United States Treasury Bills 11/17/05 99,265
-----------
Total Short-Term Investments (Cost $298,627) 298,627
-----------
Total Investments (Cost $20,485,457)(a)(99.64%) 18,512,121
Other Assets (0.36%) 66,256
-----------
Net Assets (100.00%) $18,578,377
===========
* Non-Income Producing Security
(a) Aggregate cost for federal income tax purposes is $20,492,500. At August
31, 2005, unrealized appreciation (depreciation) of securities for federal
income tax purpose is as follows:
Unrealized appreciation $ 3,893,514
Unrealized depreciation (5,873,893)
-----------
Net unrealized depreciation $(1,980,379)
===========
(b) At August 31, 2005, certain United States Treasury Bills with a market
value of $99,683 were pledged to cover margin requirements for futures
contracts.
(c) Futures contracts at August 31, 2005: (Contracts-$100 times
premium/delivery month/commitment)
Unrealized
Appreciation
(Depreciation)
Nasdaq 100 Futures:
2/Sept 05/Long $ 7,246
===========
See accompanying notes to financial statements
40
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
AUGUST 31, 2005
- --------------------------------------------------------------------------------
California
California Tax- Insured California Tax-
Free Money Intermediate Free Income
Market Fund Fund Fund
----------------------------------------------------
ASSETS
Investments at market value (identified cost $55,594,679;
21,311,093; 126,950,906; 27,380,488; 39,540,651 and
$16,504,391 respectively)(Note 1) $ 55,594,679 $ 21,775,095 $137,381,220
Cash 59,302 87,309 1,030
Interest receivable 168,161 227,176 1,618,314
Receivable for securities sold -- -- 3,308,289
Receivable for fund shares sold 8,588 -- 36,849
----------------------------------------------------
Total Assets 55,830,730 22,089,580 142,345,702
----------------------------------------------------
LIABILITIES
Payable for fund shares repurchased 22,394 919 15,841
Payable to Investment Advisor 11,474 6,705 58,212
Distribution Payable 1,425 10,076 120,626
Accrued 12b-1 fee - K Shares -- -- --
Accrued shareholder service fee - K Shares -- -- --
Accrued Administration Fee 3,910 1,567 9,380
Accrued expenses 6,673 4,394 16,788
----------------------------------------------------
Total Liabilities 45,876 23,661 220,847
----------------------------------------------------
NET ASSETS: $ 55,784,854 $ 22,065,919 $142,124,855
====================================================
Net Assets at August 31, 2005 consist of
Paid-in capital $ 55,788,112 $ 21,350,987 $128,505,512
Undistributed net investment income -- -- 223,687
Accumulated net realized gains (losses) (3,258) 250,930 2,965,342
Unrealized appreciation (depreciation) of investments -- 464,002 10,430,314
----------------------------------------------------
$ 55,784,854 $ 22,065,919 $142,124,855
====================================================
NET ASSETS
Direct Shares $ 55,784,854 $ 22,065,919 $142,124,855
====================================================
K Shares -- -- --
====================================================
SHARES OUTSTANDING
Direct Shares (no par value, unlimited shares authorized) 55,851,482 2,044,640 11,456,853
====================================================
K Shares (no par value, unlimited shares authorized) -- -- --
====================================================
NET ASSET VALUE PER SHARE
Direct Shares $ 1.00 $ 10.79 $ 12.41
====================================================
K Shares -- -- --
====================================================
U.S. The United Short-Term U.S
Government States Treasury Government
Securities Fund Trust Bond Fund
------------------------------------------------
ASSETS
Investments at market value (identified cost $55,594,679;
21,311,093; 126,950,906; 27,380,488; 39,540,651 and
$16,504,391 respectively)(Note 1) $ 27,713,824 $ 39,540,651 $ 16,456,323
Cash 70,763 31,730 94,830
Interest receivable 177,291 -- 127,343
Receivable for securities sold 1,401,581 -- --
Receivable for fund shares sold 7,005 91,515 424
------------------------------------------------
Total Assets 29,370,464 39,663,896 16,678,920
------------------------------------------------
LIABILITIES
Payable for fund shares repurchased 2,934 181,304 36,623
Payable to Investment Advisor 11,035 7,735 3,339
Distribution Payable 13,110 58,640 2,171
Accrued 12b-1 fee - K Shares 1,644 911 534
Accrued shareholder service fee - K Shares 844 490 261
Accrued Administration Fee 2,052 2,736 1,188
Accrued expenses 6,570 6,269 3,842
------------------------------------------------
Total Liabilities 38,189 258,085 47,958
------------------------------------------------
NET ASSETS: $ 29,332,275 $ 39,405,811 $ 16,630,962
================================================
Net Assets at August 31, 2005 consist of
Paid-in capital $ 29,225,115 $ 39,408,414 $ 16,870,422
Undistributed net investment income 2,997 105 1,999
Accumulated net realized gains (losses) (229,173) (2,708) (193,391)
Unrealized appreciation (depreciation) of investments 333,336 -- (48,068)
------------------------------------------------
$ 29,332,275 $ 39,405,811 $ 16,630,962
================================================
NET ASSETS
Direct Shares $ 25,023,848 $ 36,916,310 $ 15,354,033
================================================
K Shares $ 4,308,427 $ 2,489,501 $ 1,276,929
================================================
SHARES OUTSTANDING
Direct Shares (no par value, unlimited shares authorized) 2,381,227 36,918,724 1,542,332
================================================
K Shares (no par value, unlimited shares authorized) 407,584 2,489,611 128,163
================================================
NET ASSET VALUE PER SHARE
Direct Shares $ 10.51 $ 1.00 $ 9.96
================================================
K Shares $ 10.57 $ 1.00 $ 9.96
================================================
See accompanying notes to financial statements
41
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
AUGUST 31, 2005
- --------------------------------------------------------------------------------
S&P 500 Index S&P MidCap S&P SmallCap
Fund Index Fund Index Fund
----------------------------------------------------
ASSETS
Investments at market value (identified cost $84,485,770;
$122,711,600; $21,530,854; $16,009,343; $6,994,695 and
$20,485,457 respectively)(Note 1) $107,283,530 $164,985,980 $ 30,262,113
Cash 2,809 79,104 26,347
Interest receivable -- -- 300
Dividend receivable 220,121 202,627 14,116
Receivable for securities sold 48,582 3,466,440 --
Receivable for fund shares sold 17,197 196,721 3,204
Variation margin receivable 39,387 39,071 39,957
----------------------------------------------------
Total Assets 107,611,626 168,969,943 30,346,037
----------------------------------------------------
LIABILITIES
Payable for securities purchased -- 2,258,185 --
Payable for fund shares repurchased 36,358 90,108 1,662
Payable to Investment Advisor 12,487 56,863 8,223
Miscellaneous Payable -- -- --
Accrued 12b-1 fee - K Shares 1,828 1,879 2,280
Accrued shareholder service fee - K Shares 807 832 1,201
Accrued Administration Fee 7,671 11,666 2,129
Accrued expenses 12,463 15,143 10,903
----------------------------------------------------
Total Liabilities 71,614 2,434,676 26,398
----------------------------------------------------
NET ASSETS: $107,540,012 $166,535,267 $ 30,319,639
====================================================
Net Assets at August 31, 2005 consist of
Paid-in capital $ 93,831,357 $113,708,615 $ 20,329,760
Undistributed net investment income 263,477 170,489 9,042
Accumulated net realized gains (losses) (9,390,932) 10,346,091 1,136,131
Unrealized appreciation (depreciation) of investments 22,797,760 42,274,380 8,731,259
Unrealized appreciation (depreciation) of futures contracts 38,350 35,692 113,447
----------------------------------------------------
$107,540,012 $166,535,267 $ 30,319,639
====================================================
NET ASSETS
Direct Shares $102,899,452 $161,654,578 $ 24,250,063
====================================================
K Shares $ 4,640,560 $ 4,880,689 $ 6,069,576
====================================================
SHARES OUTSTANDING
Direct Shares (no par value, unlimited shares authorized) 4,180,706 6,927,433 1,270,713
====================================================
K Shares (no par value, unlimited shares authorized) 187,858 209,154 318,703
====================================================
NET ASSET VALUE PER SHARE
Direct Shares $ 24.61 $ 23.34 $ 19.08
====================================================
K Shares $ 24.70 $ 23.34 $ 19.04
====================================================
European
Equity Income Growth & Nasdaq-100
Fund Income Fund Index Fund
------------------------------------------------
ASSETS
Investments at market value (identified cost $84,485,770;
$122,711,600; $21,530,854; $16,009,343; $6,994,695 and
$20,485,457 respectively)(Note 1) $ 19,818,075 $ 7,973,455 $ 18,512,121
Cash 17,124 81,850 57,938
Interest receivable -- -- --
Dividend receivable 42,722 27,458 12,194
Receivable for securities sold -- -- --
Receivable for fund shares sold 2,882 3,484 13,475
Variation margin receivable 12,800 -- 2,800
------------------------------------------------
Total Assets 19,893,603 8,086,247 18,598,528
------------------------------------------------
LIABILITIES
Payable for securities purchased -- -- --
Payable for fund shares repurchased -- -- 3,555
Payable to Investment Advisor 8,956 2,387 4,625
Miscellaneous Payable 700 -- --
Accrued 12b-1 fee - K Shares 1,239 1,138 1,287
Accrued shareholder service fee - K Shares 643 599 675
Accrued Administration Fee 1,401 566 1,320
Accrued expenses 5,032 5,057 8,689
------------------------------------------------
Total Liabilities 17,971 9,747 20,151
------------------------------------------------
NET ASSETS: $ 19,875,632 $ 8,076,500 $ 18,578,377
================================================
Net Assets at August 31, 2005 consist of
Paid-in capital $ 15,590,481 $ 7,352,301 $ 30,616,534
Undistributed net investment income 42,664 16,444 33,047
Accumulated net realized gains (losses) 411,473 (271,005) (10,105,114)
Unrealized appreciation (depreciation) of investments 3,808,732 978,760 (1,973,336)
Unrealized appreciation (depreciation) of futures contracts 22,282 -- 7,246
------------------------------------------------
$ 19,875,632 $ 8,076,500 $ 18,578,377
================================================
NET ASSETS
Direct Shares $ 16,641,343 $ 5,024,085 $ 15,161,092
================================================
K Shares $ 3,234,289 $ 3,052,415 $ 3,417,285
================================================
SHARES OUTSTANDING
Direct Shares (no par value, unlimited shares authorized) 1,032,126 586,244 3,804,973
================================================
K Shares (no par value, unlimited shares authorized) 200,064 355,052 862,345
================================================
NET ASSET VALUE PER SHARE
Direct Shares $ 16.12 $ 8.57 $ 3.98
================================================
K Shares $ 16.17 $ 8.60 $ 3.96
================================================
See accompanying notes to financial statements
42
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2005
- --------------------------------------------------------------------------------
California
California Tax- Insured California Tax-
Free Money Intermediate Free Income
Market Fund Fund Fund
----------------------------------------------------
Investment Income
Interest income $ 1,434,180 $ 918,443 $ 6,913,701
----------------------------------------------------
Expenses
Management fees (Note 2) 375,619 123,272 710,619
Administration fees (Note 2) 26,972 9,290 56,720
Transfer agent fees 28,190 17,517 59,753
Accounting services 37,322 18,519 63,740
Custodian fees 6,700 2,010 10,397
Legal, audit and compliance (Note 2) 27,136 11,643 43,891
Trustees fees 6,335 6,238 6,244
Insurance 3,243 1,010 6,056
Printing 6,843 1,490 10,177
Registration & dues 2,190 862 1,980
12b-1 Fees - K Shares (Note 2) -- -- --
Shareholder Service Fee - K Shares (Note 2) -- -- --
----------------------------------------------------
Total Expenses 520,550 191,851 969,577
Less reimbursement from manager (Note 2) (148,649) (32,208) --
----------------------------------------------------
Net Expenses 371,901 159,643 969,577
----------------------------------------------------
Net Investment Income 1,062,279 758,800 5,944,124
----------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from security transactions -- 247,778 2,835,298
Change in unrealized appreciation (depreciation)
of investments -- (620,069) (4,551,279)
----------------------------------------------------
Net realized and unrealized gain (loss) on
investments -- (372,291) (1,715,981)
----------------------------------------------------
Net increase in net assets resulting from
operations $ 1,062,279 $ 386,509 $ 4,228,143
====================================================
Short-Term
U.S. The United U.S.
Government States Treasury Government
Securities Fund Trust Bond Fund
-------------------------------------------------
Investment Income
Interest income $ 1,248,191 $ 984,194 $ 442,661
------------------------------------------------
Expenses
Management fees (Note 2) 146,870 211,178 84,377
Administration fees (Note 2) 11,500 17,076 6,839
Transfer agent fees 25,259 25,917 18,611
Accounting services 20,603 24,960 15,104
Custodian fees 3,522 4,045 1,944
Legal, audit and compliance (Note 2) 12,934 17,637 9,254
Trustees fees 2,084 2,069 2,083
Insurance 1,117 1,525 617
Printing 3,362 3,232 1,357
Registration & dues 4,606 5,284 2,767
12b-1 Fees - K Shares (Note 2) 7,999 4,192 3,444
Shareholder Service Fee - K Shares (Note 2) 7,999 4,192 3,444
------------------------------------------------
Total Expenses 247,855 321,307 149,841
Less reimbursement from manager (Note 2) (23,631) (111,758) (48,289)
------------------------------------------------
Net Expenses 224,224 209,549 101,552
------------------------------------------------
Net Investment Income 1,023,967 774,645 341,109
------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from security transactions (229,173) (2,708) (192,092)
Change in unrealized appreciation (depreciation)
of investments 222,750 -- (19,505)
------------------------------------------------
Net realized and unrealized gain (loss) on
investments (6,423) (2,708) (211,597)
------------------------------------------------
Net increase in net assets resulting from
operations $ 1,017,544 $ 771,937 $ 129,512
================================================
See accompanying notes to financial statements
43
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2005
- --------------------------------------------------------------------------------
S&P 500 S&P MidCap S&P SmallCap
Index Fund Index Fund Index Fund
---------------------------------------------------
Investment Income
Interest income $ 10,725 $ 110,060 $ 53,267
Dividend income (Net of foreign tax withheld,
$0; $0; $0; $0; $22,828; $419, respectively) 2,351,120 1,977,822 286,351
Other Income 21,493 17,499 3,515
---------------------------------------------------
Total 2,383,338 2,105,381 343,133
---------------------------------------------------
Expenses
Management fees (Note 2) 276,585 607,173 139,183
Administration fees 43,406 62,972 11,433
Transfer agent fees 44,405 46,899 28,444
Accounting services 61,294 74,877 30,327
Custodian fees 11,410 18,681 5,616
Legal, audit and compliance (Note 2) 35,940 37,581 10,981
Trustees fees 2,086 2,084 2,087
Insurance 4,097 4,847 894
Printing 12,073 11,446 4,193
Registration & dues 10,980 12,911 4,893
12b-1 Fees - K Shares (Note 2) 9,118 9,448 11,083
Shareholder Service Fee - K Shares (Note 2) 9,118 9,448 11,083
Licensing fee 10,862 12,105 2,219
---------------------------------------------------
Total Expenses 531,374 910,472 262,436
Less reimbursement from manager (Note 2) (149,088) (56,893) (42,321)
---------------------------------------------------
Net Expenses 382,286 853,579 220,115
---------------------------------------------------
Net Investment Income 2,001,052 1,251,802 123,018
---------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from security transactions 586,226 11,202,350 1,016,107
Net realized gain (loss) from futures contracts 87,614 1,327,625 189,103
Change in unrealized appreciation (depreciation) of
investments 10,079,510 17,900,980 4,740,302
Change in unrealized appreciation (depreciation)
of futures contracts 32,705 92,635 105,266
---------------------------------------------------
Net realized and unrealized gain on investments 10,786,055 30,523,590 6,050,778
---------------------------------------------------
Net increase in net assets resulting from operations $ 12,787,107 $ 31,775,392 $ 6,173,796
===================================================
European
Equity Income Growth & Nasdaq-100
Fund Income Fund Index Fund
------------------------------------------------
Investment Income
Interest income $ 43,733 $ 4,316 $ 11,695
Dividend income (Net of foreign tax withheld,
$0; $0; $0; $0; $22,828; $419, respectively) 402,387 197,569 226,941
Other Income 2,548 665 3,104
------------------------------------------------
Total 448,668 202,550 241,740
------------------------------------------------
Expenses
Management fees (Note 2) 87,331 56,851 89,140
Administration fees 7,375 2,941 7,121
Transfer agent fees 22,435 19,168 28,284
Accounting services 16,241 11,624 16,826
Custodian fees 2,141 1,977 3,101
Legal, audit and compliance (Note 2) 9,076 6,879 9,403
Trustees fees 2,093 2,091 2,086
Insurance 550 192 621
Printing 2,493 1,686 4,415
Registration & dues 1,890 1,311 3,584
12b-1 Fees - K Shares (Note 2) 5,747 5,405 6,375
Shareholder Service Fee - K Shares (Note 2) 5,747 5,405 6,375
Licensing fee -- -- 5,007
------------------------------------------------
Total Expenses 163,119 115,530 182,338
Less reimbursement from manager (Note 2) (2,762) (38,812) (43,017)
------------------------------------------------
Net Expenses 160,357 76,718 139,321
------------------------------------------------
Net Investment Income 288,311 125,832 102,419
------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from security transactions 348,651 (10,275) (597,383)
Net realized gain (loss) from futures contracts 517,192 -- 18,101
Change in unrealized appreciation (depreciation) of
investments 1,456,709 1,155,216 2,942,611
Change in unrealized appreciation (depreciation)
of futures contracts (24,378) -- 7,246
------------------------------------------------
Net realized and unrealized gain on investments 2,298,174 1,144,941 2,370,575
------------------------------------------------
Net increase in net assets resulting from operations $ 2,586,485 $ 1,270,773 $ 2,472,994
================================================
See accompanying notes to financial statements
44
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
California Tax-Free California Insured
Money Market Fund Intermediate Fund
------------------------------ -----------------------------
Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31,
2005 2004 2005 2004
-------------------------------------------------------------------
Operations
Net investment income $ 1,062,279 $ 461,912 $ 758,800 $ 831,112
------------------------------ -----------------------------
Net realized gain (loss) on investments -- -- 247,778 54,419
Change in unrealized
appreciation (depreciation) of investments -- -- (620,069) 388,836
-------------------------------------------------------------------
Net increase in net assets resulting
from operations 1,062,279 461,912 386,509 1,274,367
Distributions to Shareholders
Distributions from net investment
income (1,062,279) (461,912) (759,043) (835,074)
Distributions from realized capital
gains on investments -- -- (54,421) (78,682)
Capital Share Transactions
Increase (decrease) in net assets
resulting from capital share
transactions (37,394,976) 4,376,024 (3,860,134) (1,913,347)
-------------------------------------------------------------------
Total increase (decrease) (37,394,976) 4,376,024 (4,287,089) (1,552,736)
Net Assets
Beginning of year 93,179,830 88,803,806 26,353,008 27,905,744
-------------------------------------------------------------------
End of year $ 55,784,854 $ 93,179,830 $ 22,065,919 $ 26,353,008
===================================================================
Including undistributed net
investment income of: $ -- $ -- $ -- $ 3,395
===================================================================
California Tax-Free
Income Fund
------------------------------
Year Ended Year Ended
August 31, August 31,
2005 2004
------------------------------
Operations
Net investment income $ 5,944,124 $ 6,558,702
------------------------------
Net realized gain (loss) on investments 2,835,298 2,804,832
Change in unrealized
appreciation (depreciation) of investments (4,551,279) 184,057
------------------------------
Net increase in net assets resulting
from operations 4,228,143 9,547,591
Distributions to Shareholders
Distributions from net investment
income (5,919,149) (6,615,271)
Distributions from realized capital
gains on investments (2,641,599) (1,385,238)
Capital Share Transactions
Increase (decrease) in net assets
resulting from capital share
transactions (11,869,851) (15,708,184)
------------------------------
Total increase (decrease) (16,202,456) (14,161,102)
Net Assets
Beginning of year 158,327,311 172,488,413
------------------------------
End of year $142,124,855 $158,327,311
==============================
Including undistributed net
investment income of: $ 223,687 $ 329,035
==============================
See accompanying notes to financial statements
45
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
U.S. Government The United States
Securities Fund Treasury Trust
------------------------------ -----------------------------
Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31,
2005 2004 2005 2004
-------------------------------------------------------------------
Operations
Net investment income $ 1,023,967 $ 921,273 $ 774,645 $ 255,414
Net realized gain on investments (229,173) 263,550 (2,708) 2,510
Change in unrealized
appreciation (depreciation) of investments 222,750 10,692 -- --
-------------------------------------------------------------------
Net increase in net assets resulting
from operations 1,017,544 1,195,515 771,937 257,924
Undistributed investment income
included in price of shares sold
and repurchased -- -- -- --
Distributions to Shareholders
Distributions from net investment income
Direct Shares (926,065) (898,759) (751,092) (254,691)
K Shares (97,919) (19,496) (23,553) (723)
Distributions from realized capital
gains on investments
Direct Shares (223,713) (224,970) (2,308) (5,459)
K Shares (22,198) (190) (96) (28)
Capital Share Transactions
Increase (decrease) in net assets
resulting from capital share
transactions 441,657 (2,494,552) (675,710) (544,900)
-------------------------------------------------------------------
Total increase (decrease) 189,306 (2,442,452) (680,822) (547,877)
Net Assets
Beginning of year 29,142,969 31,585,421 40,086,633 40,634,510
-------------------------------------------------------------------
End of year $ 29,332,275 $ 29,142,969 $ 39,405,811 $ 40,086,633
===================================================================
Including undistributed net
investment income of: $ 2,997 $ 3,018 $ 105 $ --
===================================================================
Short-Term U.S.
Government Bond Fund
------------------------------
Year Ended Year Ended
August 31, August 31,
2005 2004
------------------------------
Operations
Net investment income $ 341,109 $ 206,621
Net realized gain on investments (192,092) 8,934
Change in unrealized
appreciation (depreciation) of investments (19,505) (19,364)
------------------------------
Net increase in net assets resulting
from operations 129,512 196,191
Undistributed investment income
included in price of shares sold
and repurchased -- --
Distributions to Shareholders
Distributions from net investment income
Direct Shares (318,935) (203,269)
K Shares (21,469) (4,384)
Distributions from realized capital
gains on investments
Direct Shares (7,254) (14,053)
K Shares (669) (4)
Capital Share Transactions
Increase (decrease) in net assets
resulting from capital share
transactions 516,348 (5,141,433)
------------------------------
Total increase (decrease) 297,533 (5,166,952)
Net Assets
Beginning of year 16,333,429 21,500,381
------------------------------
End of year $ 16,630,962 $ 16,333,429
==============================
Including undistributed net
investment income of: $ 1,999 $ 1,294
==============================
See accompanying notes to financial statements
46
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
S&P 500 Index Fund S&P MidCap Index Fund
------------------------------ -----------------------------
Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31,
2005 2004 2005 2004
-------------------------------------------------------------------
Operations
Net investment income $ 2,001,052 $ 1,550,898 $ 1,251,802 $ 829,851
Net realized gain (loss) on investments 586,226 (187,936) 11,202,350 759,259
Net realized gain (loss) on futures contracts 87,614 454,361 1,327,625 903,501
Change in unrealized
appreciation of investments 10,079,510 9,198,454 17,900,980 10,585,959
Change in unrealized appreciation
of futures contracts 32,705 (60,572) 92,635 (206,760)
-------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from operations 12,787,107 10,955,205 31,775,392 12,871,810
Distributions to Shareholders
Distributions from net investment income
Direct Shares (1,982,660) (1,490,099) (1,228,758) (786,784)
K Class (43,205) (4,752) (12,820) (1,247)
Distributions from realized capital
gains on investments
Direct Shares -- -- -- --
K Class -- -- -- --
Capital Share Transactions
Increase (decrease) in net assets
resulting from capital share
transactions (11,787,670) 842,061 6,864,766 13,281,899
-------------------------------------------------------------------
Total increase (decrease) (1,026,428) 10,302,415 37,398,580 25,365,678
Net Assets
Beginning of year 108,566,440 98,264,025 129,136,687 103,771,009
-------------------------------------------------------------------
End of year $107,540,012 $108,566,440 $166,535,267 $129,136,687
===================================================================
Including undistributed net
investment income of: $ 263,477 $ 288,290 $ 170,489 $ 160,265
===================================================================
S&P SmallCap Index Fund
------------------------------
Year Ended Year Ended
August 31, August 31,
2005 2004
------------------------------
Operations
Net investment income $ 123,018 $ 53,380
Net realized gain (loss) on investments 1,016,107 1,262,635
Net realized gain (loss) on futures contracts 189,103 44,823
Change in unrealized
appreciation of investments 4,740,302 1,277,943
Change in unrealized appreciation
of futures contracts 105,266 (20,844)
------------------------------
Net increase (decrease) in net
assets resulting from operations 6,173,796 2,617,937
Distributions to Shareholders
Distributions from net investment income
Direct Shares (121,035) (52,258)
K Class (642) --
Distributions from realized capital
gains on investments
Direct Shares (986,194) (182,877)
K Class (155,275) (312)
Capital Share Transactions
Increase (decrease) in net assets
resulting from capital share
transactions 1,966,302 2,534,475
------------------------------
Total increase (decrease) 6,876,952 4,916,965
Net Assets
Beginning of year 23,442,687 18,525,722
------------------------------
End of year $ 30,319,639 $ 23,442,687
==============================
Including undistributed net
investment income of: $ 9,042 $ 7,701
==============================
See accompanying notes to financial statements
47
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
European Growth
Equity Income Fund & Income Fund
------------------------------ -----------------------------
Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31,
2005 2004 2005 2004
------------------------------------------------------------------
Operations
Net investment income (loss) $ 288,311 $ 144,827 $ 125,832 $ 84,165
Net realized gain (loss) on investments 348,651 371,115 (10,275) (32,592)
Net realized gain (loss) on futures contracts 517,192 194,491 -- (28,906)
Change in unrealized
appreciation of investments 1,456,709 914,863 1,155,216 540,073
Change in unrealized appreciation
of futures contracts (24,378) 3,000 -- --
------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from operations 2,586,485 1,628,296 1,270,773 562,740
Distributions to Shareholders
Distributions from net investment income
Direct Shares (252,103) (133,721) (93,107) (72,550)
K Shares (25,166) (956) (34,772) (6,306)
Capital Share Transactions
Increase in net assets
resulting from capital share
transactions 2,959,647 3,295,317 1,834,152 1,251,172
------------------------------------------------------------------
Total increase (decrease) 5,268,863 4,788,936 2,977,046 1,735,056
Net Assets
Beginning of year 14,606,769 9,817,833 5,099,454 3,364,398
------------------------------------------------------------------
End of year $ 19,875,632 $ 14,606,769 $ 8,076,500 $ 5,099,454
==================================================================
Including undistributed net
investment income of: $ 42,664 $ 36,738 $ 16,444 $ 18,491
==================================================================
Nasdaq-100 Index Fund
---------------------------------
Year Ended Year Ended
August 31, August 31,
2005 2004
---------------------------------
Operations
Net investment income (loss) $ 102,419 $ (68,157)
Net realized gain (loss) on investments (597,383) (1,764,906)
Net realized gain (loss) on futures contracts 18,101 230,041
Change in unrealized
appreciation of investments 2,942,611 1,764,736
Change in unrealized appreciation
of futures contracts 7,246 --
---------------------------------
Net increase (decrease) in net
assets resulting from operations 2,472,994 161,714
Distributions to Shareholders
Distributions from net investment income
Direct Shares (61,994) --
K Shares (7,378) --
Capital Share Transactions
Increase in net assets
resulting from capital share
transactions 175,523 909,458
---------------------------------
Total increase (decrease) 2,579,145 1,071,172
Net Assets
Beginning of year 15,999,232 14,928,060
---------------------------------
End of year $ 18,578,377 $ 15,999,232
=================================
Including undistributed net
investment income of: $ 33,047 $ --
=================================
See accompanying notes to financial statements
48
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
California Tax-Free Income Fund
----------------------------------------------------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
--------------------------------- ---------------------------------
Shares Value Shares Value
--------------------------------- ---------------------------------
Shares sold ....................... 723,431 $ 9,046,298 2,319,440 $ 29,827,911
Shares issued in reinvestment of
distributions ................... 516,415 6,440,138 476,675 6,120,489
--------------------------------- ---------------------------------
1,239,846 15,486,436 2,796,115 35,948,400
Shares repurchased ................ (2,175,284) (27,356,287)(a) (4,027,520) (51,656,584)
--------------------------------- ---------------------------------
Net increase (decrease) .... (935,438) $ (11,869,851) (1,231,405) $ (15,708,184)
================================= =================================
California Insured Intermediate Fund
----------------------------------------------------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
--------------------------------- ---------------------------------
Shares Value Shares Value
--------------------------------- ---------------------------------
Shares sold ....................... 98,808 $ 1,075,273 257,322 $ 2,849,192
Shares issued in reinvestment of
distributions ................... 57,857 628,268 61,776 678,067
--------------------------------- ---------------------------------
156,665 1,703,541 319,098 3,527,259
Shares repurchased ................ (512,642) (5,563,675) (502,444) (5,440,606)
--------------------------------- ---------------------------------
Net increase (decrease) .... (355,977) $ (3,860,134) (183,346) $ (1,913,347)
================================= =================================
California Tax-Free
Money Market
-------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
----------- -----------
Shares/Value Shares/Value
----------- -----------
Shares sold .................... 60,780,393 76,522,931
Shares issued in reinvestment of
distributions ............... 1,032,811 396,128
----------- -----------
61,813,204 76,919,059
Shares repurchased ............. (99,208,180) (72,543,035)
----------- -----------
Net increase (decrease) ..... (37,394,976) 4,376,024
=========== ===========
The United States Treasury Trust
Direct Shares K Shares
------------------------------- -------------------------------
Year Ended Year Ended Year Ended October 16, 2003*
August 31, 2005 August 31, 2004 August 31, 2005 to August 31, 2004
----------- ----------- ----------- -----------
Shares/Value Shares/Value Shares/Value Shares/Value
----------- ----------- ----------- -----------
Shares sold .................... 58,408,974 61,066,006 2,829,000 1,547,451
Shares issued in reinvestment of
distributions ............... 675,688 249,705 23,677 740
----------- ----------- ----------- -----------
59,084,662 61,315,711 2,852,677 1,548,191
Shares repurchased ............. (61,306,417) (62,804,178) (1,306,632) (604,624)
----------- ----------- ----------- -----------
Net increase (decrease) ..... (2,221,755) (1,488,467) 1,546,045 943,567
=========== =========== =========== ===========
Short-Term U.S. Government Bond Fund
Direct Shares
---------------------------------------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 617,962 $ 6,185,003 481,018 $ 4,867,152
Shares issued in reinvestment of
distributions ............... 31,075 310,145 20,567 207,999
----------------------------- -----------------------------
649,037 6,495,148 501,585 5,075,151
Shares repurchased ............. (603,266) (6,037,432) (1,131,001) (11,455,015)
----------------------------- -----------------------------
Net increase (decrease) ..... 45,771 $ 457,716 (629,416) $ (6,379,864)
============================= =============================
K Shares
---------------------------------------------------------------
Year Ended October 16, 2003*
August 31, 2005 to August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 58,915 $ 589,277 134,312 $ 1,359,505
Shares issued in reinvestment of
distributions ............... 2,217 22,140 434 4,388
----------------------------- -----------------------------
61,132 611,417 134,746 1,363,893
Shares repurchased ............. (55,341) (552,785) (12,374) (125,462)
----------------------------- -----------------------------
Net increase (decrease) ..... 5,791 $ 58,632 122,372 $ 1,238,431
============================= =============================
See accompanying notes to financial statements
* Commencement of operations
(a) Net of redemption fees of $342
49
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
U.S. Government Securities Fund
Direct Shares
---------------------------------------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 336,278 $ 3,539,744 519,310 $ 5,527,064
Shares issued in reinvestment of
distributions ............... 93,062 975,781 92,069 971,074
----------------------------- -----------------------------
429,340 4,515,525 611,379 6,498,138
Shares repurchased ............. (638,215) (6,705,485)(a) (1,012,163) (10,666,564)
----------------------------- -----------------------------
Net increase (decrease) ..... (208,875) $ (2,189,960) (400,784) $ (4,168,426)
============================= =============================
K Shares
---------------------------------------------------------------
Year Ended October 16, 2003*
August 31, 2005 to August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 289,030 $ 3,054,854 168,080 $ 1,774,698
Shares issued in reinvestment of
distributions ............... 11,439 120,529 1,864 19,687
----------------------------- -----------------------------
300,469 3,175,383 169,944 1,794,385
Shares repurchased ............. (51,476) (543,766) (11,353) (120,511)
----------------------------- -----------------------------
Net increase (decrease) ..... 248,993 $ 2,631,617 158,591 $ 1,673,874
============================= =============================
S&P 500 Index Fund
Direct Shares
---------------------------------------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 228,945 $ 5,451,938 605,048 $ 13,414,804
Shares issued in reinvestment of
distributions ............... 66,663 1,582,799 53,064 1,168,686
----------------------------- -----------------------------
295,608 7,034,737 658,112 14,583,490
Shares repurchased ............. (878,422) (20,867,030)(b) (721,895) (16,024,303)
----------------------------- -----------------------------
Net increase (decrease) ..... (582,814) $(13,832,293) (63,783) $ (1,440,813)
============================= =============================
K Shares
---------------------------------------------------------------
Year Ended October 16, 2003*
August 31, 2005 to August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 110,280 $ 2,599,667 111,723 $ 2,520,819
Shares issued in reinvestment of
distributions ............... 1,782 42,835 203 4,657
----------------------------- -----------------------------
112,062 2,642,502 111,926 2,525,476
Shares repurchased ............. (25,282) (597,879) (10,848) (242,602)
----------------------------- -----------------------------
Net increase (decrease) ..... 86,780 $ 2,044,623 101,078 $ 2,282,874
============================= =============================
S&P MidCap Index Fund
Direct Shares
---------------------------------------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
1,329,401 $ 28,263,071 1,579,147 $ 29,686,218
Shares sold
Shares issued in reinvestment of
distributions ............... 48,867 1,044,383 35,605 672,431
----------------------------- -----------------------------
1,378,268 29,307,454 1,614,752 30,358,649
Shares repurchased ............. (1,117,527) (24,116,552)(c) (1,048,847) (19,578,331)
----------------------------- -----------------------------
Net increase (decrease) ..... 260,741 $ 5,190,902 565,905 $ 10,780,318
============================= =============================
K Shares
---------------------------------------------------------------
Year Ended October 16, 2003*
August 31, 2005 to August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
112,187 $ 2,357,193 136,362 $ 2,636,585
Shares sold
Shares issued in reinvestment of
distributions ............... 578 12,418 59 1,172
----------------------------- -----------------------------
112,765 2,369,611 136,421 2,637,757
Shares repurchased ............. (33,015) (695,747) (7,017) (136,176)
----------------------------- -----------------------------
Net increase (decrease) ..... 79,750 $ 1,673,864 129,404 $ 2,501,581
============================= =============================
* Commencement of operations
(a) Net of redemption fees of $30
(b) Net of redemption fees of $1,911
(c) Net of redemption fees of $956
See accompanying notes to financial statements
50
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
S&P SmallCap Index Fund
Direct Shares
---------------------------------------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 215,853 $ 3,826,293 355,453 $ 5,543,894
Shares issued in reinvestment of
distributions ............... 61,416 1,086,452 15,052 231,361
----------------------------- -----------------------------
277,269 4,912,745 370,505 5,775,255
Shares repurchased ............. (314,934) (5,581,158)(a) (379,065) (5,979,330)
----------------------------- -----------------------------
Net increase (decrease) ..... (37,665) $ (668,413) (8,560) $ (204,075)
============================= =============================
K Shares
---------------------------------------------------------------
Year Ended October 16, 2003*
August 31, 2005 to August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 180,225 $ 3,201,964 176,552 $ 2,833,369
Shares issued in reinvestment of
distributions ............... 8,843 155,917 20 312
----------------------------- -----------------------------
189,068 3,357,881 176,572 2,833,681
Shares repurchased ............. (41,049) (723,166) (5,888) (95,131)
----------------------------- -----------------------------
Net increase (decrease) ..... 148,019 $ 2,634,715 170,684 $ 2,738,550
============================= =============================
Equity Income Fund
Direct Shares
---------------------------------------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 348,695 $ 5,284,387 285,655 $ 3,895,111
Shares issued in reinvestment of
distributions ............... 15,372 234,049 9,514 128,543
----------------------------- -----------------------------
364,067 5,518,436 295,169 4,023,654
Shares repurchased ............. (265,628) (4,028,317)(b) (158,103) (2,170,526)
----------------------------- -----------------------------
Net increase (decrease) ..... 98,439 $ 1,490,119 137,066 $ 1,853,128
============================= =============================
K Shares
---------------------------------------------------------------
Year Ended October 16, 2003*
August 31, 2005 to August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 122,841 $ 1,876,427 110,644 $ 1,531,478
Shares issued in reinvestment of
distributions ............... 1,649 25,285 67 956
----------------------------- -----------------------------
124,490 1,901,712 110,711 1,532,434
Shares repurchased ............. (28,650) (432,184) (6,487) (90,245)
----------------------------- -----------------------------
Net increase (decrease) ..... 95,840 $ 1,469,528 104,224 $ 1,442,189
============================= =============================
European Growth & Income Fund
Direct Shares
---------------------------------------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 200,192 $ 1,634,738 468,370 $ 3,190,388
Shares issued in reinvestment of
distributions ............... 11,452 91,607 10,048 71,466
----------------------------- -----------------------------
211,644 1,726,345 478,418 3,261,854
Shares repurchased ............. (178,134) (1,428,679)(c) (470,211) (3,215,473)
----------------------------- -----------------------------
Net increase (decrease) ..... 33,510 $ 297,666 8,207 $ 46,381
============================= =============================
K Shares
---------------------------------------------------------------
Year Ended October 16, 2003*
August 31, 2005 to August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 241,874 $ 1,956,833 175,871 $ 1,282,465
Shares issued in reinvestment of
distributions ............... 4,300 34,800 860 6,308
----------------------------- -----------------------------
246,174 1,991,633 176,731 1,288,773
Shares repurchased ............. (56,580) (455,147) (11,271) (83,982)
----------------------------- -----------------------------
Net increase (decrease) ..... 189,594 $ 1,536,486 165,460 $ 1,204,791
============================= =============================
* Commencement of operations
(a) Net of redemption fees of $83
(b) Net of redemption fees of $24
(c) Net of redemption fees of $46
See accompanying notes to financial statements
51
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Nasdaq-100 Index Fund
Direct Shares
---------------------------------------------------------------
Year Ended Year Ended
August 31, 2005 August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 619,200 $ 2,368,771 1,956,544 $ 7,041,214
Shares issued in reinvestment of
distributions ............... 14,943 60,976 -- --
----------------------------- -----------------------------
634,143 2,429,747 1,956,544 7,041,214
Shares repurchased ............. (979,336) (3,734,072)(a) (2,189,504) (7,878,485)
----------------------------- -----------------------------
Net increase (decrease) ..... (345,193) $ (1,304,325) (232,960) $ (837,271)
============================= =============================
K Shares
---------------------------------------------------------------
Year Ended October 16, 2003*
August 31, 2005 to August 31, 2004
----------------------------- -----------------------------
Shares Value Shares Value
----------------------------- -----------------------------
Shares sold .................... 522,499 $ 2,003,324 514,305 $ 1,877,933
Shares issued in reinvestment of
distributions ............... 1,918 7,785 -- --
----------------------------- -----------------------------
524,417 2,011,109 514,305 1,877,933
Shares repurchased ............. (140,898) (531,261) (35,479) (131,204)
----------------------------- -----------------------------
Net increase (decrease) ..... 383,519 $ 1,479,848 478,826 $ 1,746,729
============================= =============================
* Commencement of operations
(a) Net of redemption fees of $50
See accompanying notes to financial statements
52
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
- --------------------------------------------------------------------------------
California Tax-Free Money Market Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.014 0.005 0.007 0.011 0.026
LESS DISTRIBUTIONS
Dividends from net investment income (0.014) (0.005) (0.007) (0.011) (0.026)
--------------------------------------------------------------------
Net asset value, end of year $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
====================================================================
Total Return 1.46% 0.54% 0.70% 1.15% 2.66%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year ( in 000's) $ 55,785 $ 93,180 $ 88,804 $ 93,371 $ 99,520
Ratio of expenses to average net assets:
Before expense reimbursements 0.69% 0.65% 0.65% 0.65% 0.63%
After expense reimbursements 0.50% 0.44% 0.43% 0.40% 0.40%
Ratio of net investment income to average net assets
Before expense reimbursements 1.22% 0.33% 0.48% 0.90% 2.36%
After expense reimbursements 1.41% 0.54% 0.70% 1.15% 2.59%
California Insured Intermediate Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 10.98 $ 10.80 $ 11.22 $ 11.09 $ 10.72
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.34 0.33 0.33 0.39 0.43
Net gain (loss) on securities (both
realized and unrealized) (0.17) 0.21 (0.21) 0.27 0.37
--------------------------------------------------------------------
Total from Investment Operations 0.17 0.54 0.12 0.66 0.80
--------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.34) (0.33) (0.33) (0.39) (0.43)
Distributions from capital gains (0.02) (0.03) (0.21) (0.14) --
--------------------------------------------------------------------
Total distributions (0.36) (0.36) (0.54) (0.53) (0.43)
--------------------------------------------------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A N/A N/A N/A
--------------------------------------------------------------------
Net asset value, end of year $ 10.79 $ 10.98 $ 10.80 $ 11.22 $ 11.09
====================================================================
Total Return 1.58% 5.06% 1.03% 6.17% 7.66%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year ( in 000's) $ 22,066 $ 26,353 $ 27,906 $ 27,105 $ 22,949
Ratio of expenses to average net assets:
Before expense reimbursements 0.78% 0.71% 0.71% 0.72% 0.71%
After expense reimbursements 0.65% 0.59% 0.58% 0.55% 0.55%
Ratio of net investment income to average net assets
Before expense reimbursements 2.95% 2.85% 2.83% 3.43% 3.82%
After expense reimbursements 3.08% 2.97% 2.96% 3.60% 3.98%
Portfolio Turnover 9.18% 21.62% 22.45% 29.28% 24.35%
(a) Less than $0.01 per share
See accompanying notes to financial statements
53
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
(CONTINUED)
- --------------------------------------------------------------------------------
California Tax-Free Income Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 12.78 $ 12.66 $ 13.24 $ 13.17 $ 12.75
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.50 0.50 0.50 0.52 0.55
Net gain (loss) on securities (both
realized and unrealized) (0.13) 0.22 (0.42) 0.18 0.44
--------------------------------------------------------------------
Total from Investment Operations 0.37 0.72 0.08 0.70 0.99
--------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.51) (0.50) (0.50) (0.52) (0.56)
Distributions from capital gains (0.23) (0.10) (0.16) (0.11) (0.01)
--------------------------------------------------------------------
Total distributions (0.74) (0.60) (0.66) (0.63) (0.57)
--------------------------------------------------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A N/A N/A N/A
--------------------------------------------------------------------
Net asset value, end of year $ 12.41 $ 12.78 $ 12.66 $ 13.24 $ 13.17
====================================================================
Total Return 2.96% 5.82% 0.61% 5.55% 7.98%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year ( in 000's) $142,125 $158,327 $172,488 $206,909 $201,286
Ratio of expenses to average net assets:
Before expense reimbursements 0.66% 0.62% 0.61% 0.61% 0.63%
Ratio of net investment income to average net assets
Before expense reimbursements 4.05% 3.86% 3.82% 4.11% 4.30%
Portfolio Turnover 31.95% 11.64% 1.44% 22.94% 28.96%
(a) Less than $0.01 per share
See accompanying notes to financial statements
54
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
(CONTINUED)
- --------------------------------------------------------------------------------
U.S. Government Securities Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
DIRECT SHARES 2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 10.60 $ 10.56 $ 10.73 $ 10.77 $ 10.33
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.37 0.35 0.35 0.50 0.58
Net gain (loss) on securities (both
realized and unrealized) (0.00)(a) 0.09 (0.08) 0.19 0.42
Total from Investment Operations 0.37 0.44 0.27 0.69 1.00
LESS DISTRIBUTIONS
Dividends from net investment income (0.37) (0.32) (0.44) (0.59) (0.56)
Distributions from capital gains (0.09) (0.08) -- (0.14) --
--------------------------------------------------------------------
Total distributions (0.46) (0.40) (0.44) (0.73) (0.56)
--------------------------------------------------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A N/A N/A N/A
--------------------------------------------------------------------
Net asset value, end of year $ 10.51 $ 10.60 $ 10.56 $ 10.73 $ 10.77
====================================================================
Total Return 3.60% 4.23% 2.52% 6.65% 9.94%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year ( in 000's) $ 25,024 $ 27,454 $ 31,585 $ 33,275 $ 27,265
Ratio of expenses to average net assets:
Before expense reimbursements 0.79% 0.75% 0.71% 0.71% 0.71%
After expense reimbursements 0.71% 0.65% 0.65% 0.65% 0.65%
Ratio of net investment income to average net assets
Before expense reimbursements 3.46% 2.92% 3.22% 4.59% 5.32%
After expense reimbursements 3.54% 3.02% 3.28% 4.65% 5.38%
Portfolio Turnover 39.85% 103.98% 39.29% 150.35% 209.58%
Year Ended October 16, 2003*
August 31, to August 31,
K SHARES 2005 2004
-----------------------------
Net asset value, beginning of period $ 10.65 $ 10.55
-----------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.31 0.23
Net gain (loss) on securities (both
realized and unrealized) 0.01 0.15
-----------------------------
Total from Investment Operations 0.32 0.38
-----------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.31) (0.20)
Distributions from capital gains (0.09) (0.08)
-----------------------------
Total distributions (0.40) (0.28)
-----------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A
-----------------------------
Net asset value, end of period $ 10.57 $ 10.65
=============================
Total Return 3.07% 3.66%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ( in 000's) $ 4,308 $ 1,689
Ratio of expenses to average net assets:
Before expense reimbursements 1.30% 1.25%**
After expense reimbursements 1.22% 1.15%**
Ratio of net investment income to average net assets
Before expense reimbursements 2.95% 2.42%**
After expense reimbursements 3.03% 2.52%**
Portfolio Turnover 39.85% 103.98%
* Commencement of operations.
** Annualized.
(a) Less than $0.01 per share
See accompanying notes to financial statements
55
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
(CONTINUED)
- --------------------------------------------------------------------------------
The United States Treasury Trust
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
DIRECT SHARES 2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.017 0.006 0.008 0.017 0.047
LESS DISTRIBUTIONS
Dividends from net investment income (0.017) (0.006) (0.008) (0.017) (0.047)
--------------------------------------------------------------------
Net asset value, end of year $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
====================================================================
Total Return 1.72% 0.63% 0.86% 1.70% 4.87%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year ( in 000's) $ 36,919 $ 39,143 $ 40,635 $ 51,013 $ 59,760
Ratio of expenses to average net assets:
Before expense reimbursements 0.74% 0.71% 0.70% 0.67% 0.65%
After expense reimbursements 0.48% 0.36% 0.42% 0.42% 0.40%
Ratio of net investment income to average net assets
Before expense reimbursements 1.59% 0.28% 0.56% 1.45% 4.48%
After expense reimbursements 1.85% 0.63% 0.84% 1.70% 4.73%
Year Ended October 16, 2003*
August 31, to August 31,
K SHARES 2005 2004
-----------------------------
Net asset value, beginning of period $ 1.000 $ 1.000
-----------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.012 0.001
LESS DISTRIBUTIONS
Dividends from net investment income (0.012) (0.001)
-----------------------------
Net asset value, end of period $ 1.000 $ 1.000
=============================
Total Return 1.22% 0.12%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ( in 000's) $ 2,490 $ 944
Ratio of expenses to average net assets:
Before expense reimbursements 1.25% 1.21%**
After expense reimbursements 0.99% 0.86%**
Ratio of net investment income to average net assets
Before expense reimbursements 1.08% (0.22)%**
After expense reimbursements 1.34% 0.13%**
* Commencement of operations.
** Annualized.
See accompanying notes to financial statements
56
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
(CONTINUED)
- --------------------------------------------------------------------------------
Short-Term U.S. Government Bond Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
DIRECT SHARES 2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 10.09 $ 10.11 $ 10.17 $ 10.24 $ 10.05
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.21 0.11 0.18 0.30 0.53
Net gain on securities (both
realized and unrealized) (0.13) -- (0.06) 0.09 0.21
--------------------------------------------------------------------
Total from Investment Operations 0.08 0.11 0.12 0.39 0.74
--------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.21) (0.12) (0.18) (0.30) (0.55)
Distributions from capital gains (0.00)(a) (0.01) -- (0.16) (0.00)
--------------------------------------------------------------------
Total distributions (0.21) (0.13) (0.18) (0.46) (0.55)
--------------------------------------------------------------------
Net asset value, end of year $ 9.96 $ 10.09 $ 10.11 $ 10.17 $ 10.24
====================================================================
Total Return 0.82% 1.06% 1.17% 3.90% 7.58%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year ( in 000's) $ 15,354 $ 15,098 $ 21,500 $ 10,942 $ 11,623
Ratio of expenses to average net assets:
Before expense reimbursements 0.85% 0.80% 0.80% 0.82% 0.86%
After expense reimbursements 0.56% 0.50% 0.49% 0.43% 0.30%
Ratio of net investment income to average net assets
Before expense reimbursements 1.77% 0.85% 1.35% 2.57% 4.63%
After expense reimbursements 2.06% 1.15% 1.66% 2.96% 5.19%
Portfolio Turnover 159.11% 62.58% 74.45% 119.61% 64.56%
Year Ended October 16, 2003*
August 31, to August 31,
K SHARES 2005 2004
-----------------------------
Net asset value, beginning of period $ 10.10 $ 10.12
-----------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.15 0.05
Net gain on securities (both
realized and unrealized) (0.14) (0.01)
-----------------------------
Total from Investment Operations 0.01 0.04
-----------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.15) (0.05)
Distributions from capital gains (0.00)(a) (0.01)
-----------------------------
Total distributions (0.15) (0.06)
-----------------------------
Net asset value, end of period $ 9.96 $ 10.10
=============================
Total Return 0.20% 0.41%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ( in 000's) $ 1,277 $ 1,235
Ratio of expenses to average net assets:
Before expense reimbursements 1.35% 1.30%**
After expense reimbursements 1.06% 1.00%**
Ratio of net investment income to average net assets
Before expense reimbursements 1.27% 0.35%**
After expense reimbursements 1.56% 0.65%**
Portfolio Turnover 159.11% 62.58%
* Commencement of operations.
** Annualized.
(a) Less than $0.01 per share
See accompanying notes to financial statements
57
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
(CONTINUED)
- --------------------------------------------------------------------------------
S&P 500 Index Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
DIRECT SHARES 2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 22.32 $ 20.36 $ 18.48 $ 22.79 $ 30.84
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.44 0.32 0.29 0.29 0.34
Net gain (loss) on securities (both
realized and unrealized) 2.29 1.95 1.89 (4.31) (7.64)
--------------------------------------------------------------------
Total from Investment Operations 2.73 2.27 2.18 (4.02) (7.30)
--------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.44) (0.31) (0.30) (0.29) (0.34)
Distributions from capital gains -- -- -- -- (0.41)
--------------------------------------------------------------------
Total distributions (0.44) (0.31) (0.30) (0.29) (0.75)
--------------------------------------------------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A N/A N/A N/A
--------------------------------------------------------------------
Net asset value, end of year $ 24.61 $ 22.32 $ 20.36 $ 18.48 $ 22.79
====================================================================
Total Return 12.31% 11.16% 12.03% (17.83)% (23.93)%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year ( in 000's) $102,899 $106,305 $ 98,264 $ 93,961 $141,390
Ratio of expenses to average net assets:
Before expense reimbursements 0.46% 0.43% 0.45% 0.41% 0.39%
After expense reimbursements 0.33% 0.27% 0.25% 0.20% 0.20%
Ratio of net investment income to average net assets
Before expense reimbursements 1.35% 1.27% 1.35% 1.30% 1.16%
After expense reimbursements 1.48% 1.43% 1.55% 1.51% 1.35%
Portfolio Turnover 3.36% 2.00% 3.63% 31.12% 6.26%
Year Ended October 16, 2003*
August 31, to August 31,
K SHARES 2005 2004
-----------------------------
Net asset value, beginning of period $ 22.37 $ 21.17
-----------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.29 0.12
Net gain (loss) on securities (both
realized and unrealized) 2.33 1.16
-----------------------------
Total from Investment Operations 2.62 1.28
-----------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.29) (0.08)
Distributions from capital gains -- --
-----------------------------
Total distributions (0.29) (0.08)
-----------------------------
Paid in capital from redemption fee (Note 1) (0.00) N/A
-----------------------------
Net asset value, end of period $ 24.70 $ 22.37
=============================
Total Return 11.77% 6.05%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ( in 000's) $ 4,641 $ 2,261
Ratio of expenses to average net assets:
Before expense reimbursements 0.97% 0.93%**
After expense reimbursements 0.84% 0.77%**
Ratio of net investment income to average net assets
Before expense reimbursements 0.84% 0.77%**
After expense reimbursements 0.97% 0.93%**
Portfolio Turnover 3.36% 2.00%
* Commencement of operations.
** Annualized.
(a) Less than $0.01 per share
See accompanying notes to financial statements
58
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
(CONTINUED)
- --------------------------------------------------------------------------------
S&P MidCap Index Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
DIRECT SHARES 2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 19.00 $ 17.01 $ 14.60 $ 16.18 $ 20.75
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.18 0.13 0.12 0.05 0.17
Net gain (loss) on securities (both
realized and unrealized) 4.34 1.98 2.41 (1.54) (1.66)
--------------------------------------------------------------------
Total from Investment Operations 4.52 2.11 2.53 (1.49) (1.49)
--------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.18) (0.12) (0.12) (0.03) (0.18)
Distributions from capital gains -- -- -- (0.06) (2.90)
--------------------------------------------------------------------
Total distributions (0.18) (0.12) (0.12) (0.09) (3.08)
--------------------------------------------------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A N/A N/A N/A
--------------------------------------------------------------------
Net asset value, end of year $ 23.34 $ 19.00 $ 17.01 $ 14.60 $ 16.18
====================================================================
Total Return 23.87% 12.44% 17.46% (8.77)% (6.56)%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year ( in 000's) $161,655 $126,678 $103,771 $ 96,590 $ 83,293
Ratio of expenses to average net assets:
Before expense reimbursements 0.59% 0.58% 0.58% 0.58% 0.56%
After expense reimbursements 0.55% 0.49% 0.46% 0.40% 0.40%
Ratio of net investment income to average net assets
Before expense reimbursements 0.80% 0.60% 0.66% 0.78% 0.84%
After expense reimbursements 0.84% 0.69% 0.78% 0.96% 1.00%
Portfolio Turnover 18.07% 12.75% 8.33% 21.73% 39.41%
Year Ended October 16, 2003*
August 31, to August 31,
K SHARES 2005 2004
-----------------------------
Net asset value, beginning of period $ 19.00 $ 17.78
-----------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.07 0.05
Net gain (loss) on securities (both
realized and unrealized) 4.34 1.19
-----------------------------
Total from Investment Operations 4.41 1.24
-----------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.07) (0.02)
Distributions from capital gains -- --
-----------------------------
Total distributions (0.07) (0.02)
-----------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A
-----------------------------
Net asset value, end of period $ 23.34 $ 19.00
=============================
Total Return 23.26% 6.96%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ( in 000's) $ 4,881 $ 2,459
Ratio of expenses to average net assets:
Before expense reimbursements 1.09% 1.08%**
After expense reimbursements 1.05% 0.99%**
Ratio of net investment income to average net assets
Before expense reimbursements 0.30% 0.10%**
After expense reimbursements 0.34% 0.19%**
Portfolio Turnover 18.07% 12.75%
* Commencement of operations.
** Annualized.
(a) Less than $0.01 per share
See accompanying notes to financial statements
59
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
(CONTINUED)
- --------------------------------------------------------------------------------
S&P SmallCap Index Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
DIRECT SHARES 2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 15.85 $ 14.07 $ 11.60 $ 12.89 $ 14.09
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.09 0.04 0.03 0.03 0.11
Net gain (loss) on securities (both
realized and unrealized) 3.99 1.92 2.51 (1.28) (0.55)
--------------------------------------------------------------------
Total from Investment Operations 4.08 1.96 2.54 (1.25) (0.44)
--------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.09) (0.04) (0.03) (0.04) (0.12)
Distributions from capital gains (0.76) (0.14) (0.04) -- (0.64)
--------------------------------------------------------------------
Total distributions (0.85) (0.18) (0.07) (0.04) (0.76)
--------------------------------------------------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A N/A N/A N/A
--------------------------------------------------------------------
Net asset value, end of year $ 19.08 $ 15.85 $ 14.07 $ 11.60 $ 12.89
====================================================================
Total Return 26.17% 13.93% 22.04% (9.69)% (2.59)%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year ( in 000's) $ 24,250 $ 20,742 $ 18,526 $ 15,813 $ 14,226
Ratio of expenses to average net assets:
Before expense reimbursements 0.86% 0.82% 0.88% 0.88% 0.92%
After expense reimbursements 0.71% 0.65% 0.65% 0.65% 0.65%
Ratio of net investment income to average net assets
Before expense reimbursements 0.37% 0.09% 0.08% 0.00% 0.54%
After expense reimbursements 0.52% 0.26% 0.31% 0.23% 0.81%
Portfolio Turnover 7.25% 14.60% 16.51% 17.64% 41.91%
Year Ended October 16, 2003*
August 31, to August 31,
K SHARES 2005 2004
-----------------------------
Net asset value, beginning of period $ 15.82 $ 14.78
-----------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.01 (0.01)
Net gain (loss) on securities (both
realized and unrealized) 3.97 1.19
-----------------------------
Total from Investment Operations 3.98 1.18
-----------------------------
LESS DISTRIBUTIONS
Dividends from net investment income -- --
Distributions from capital gains (0.76) (0.14)
-----------------------------
Total distributions (0.76) (0.14)
-----------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A
-----------------------------
Net asset value, end of period $ 19.04 $ 15.82
=============================
Total Return 25.53% 7.99%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ( in 000's) $ 6,070 $ 2,700
Ratio of expenses to average net assets:
Before expense reimbursements 1.36% 1.32%**
After expense reimbursements 1.21% 1.15%**
Ratio of net investment income to average net assets
Before expense reimbursements (0.13)% (0.41)%**
After expense reimbursements 0.02% (0.24)%**
Portfolio Turnover 7.25% 14.60%
* Commencement of operations.
** Annualized.
(a) Less than $0.01 per share
See accompanying notes to financial statements
60
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
(CONTINUED)
- --------------------------------------------------------------------------------
Equity Income Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
DIRECT SHARES 2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 14.07 $ 12.32 $ 11.38 $ 12.21 $ 14.81
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.26 0.20 0.15 0.17 0.28
Net gain (loss) on securities (both
realized and unrealized) 2.05 1.70 0.94 (0.83) (2.46)
--------------------------------------------------------------------
Total from Investment Operations 2.31 1.90 1.09 (0.66) (2.18)
--------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.26) (0.15) (0.15) (0.17) (0.39)
Distributions from capital gains -- -- -- -- (0.03)
--------------------------------------------------------------------
Total distributions (0.26) (0.15) (0.15) (0.17) (0.42)
--------------------------------------------------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A N/A N/A N/A
--------------------------------------------------------------------
Net asset value, end of year $ 16.12 $ 14.07 $ 12.32 $ 11.38 $ 12.21
====================================================================
Total Return 16.51% 15.51% 9.77% (5.46)% (14.94)%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year (in 000's) $ 16,641 $ 13,137 $ 9,818 $ 8,261 $ 8,794
Ratio of expenses to average net assets:
Before expense reimbursements 0.87% 0.90% 0.95% 0.91% 0.94%
After expense reimbursements 0.85% 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income to average net assets
Before expense reimbursements 1.70% 1.04% 1.24% 1.33% 1.96%
After expense reimbursements 1.72% 1.14% 1.39% 1.44% 2.10%
Portfolio Turnover 3.25% 14.43% 30.01% 69.43% 73.50%
Year Ended October 16, 2003*
August 31, to August 31,
K SHARES 2005 2004
-----------------------------
Net asset value, beginning of period $ 14.10 $ 12.90
-----------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.18 0.01
Net gain (loss) on securities (both
realized and unrealized) 2.07 1.21
-----------------------------
Total from Investment Operations 2.25 1.22
-----------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.18) (0.02)
Distributions from capital gains -- --
-----------------------------
Total distributions (0.18) (0.02)
-----------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A
-----------------------------
Net asset value, end of period $ 16.17 $ 14.10
=============================
Total Return 16.00% 9.47%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ( in 000's) $ 3,234 $ 1,470
Ratio of expenses to average net assets:
Before expense reimbursements 1.37% 1.40%**
After expense reimbursements 1.35% 1.30%**
Ratio of net investment income to average net assets
Before expense reimbursements 1.20% 0.54%**
After expense reimbursements 1.22% 0.64%**
Portfolio Turnover 3.25% 14.43%
* Commencement of operations.
** Annualized.
(a) Less than $0.01 per share
See accompanying notes to financial statements
61
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
(CONTINUED)
- --------------------------------------------------------------------------------
European Growth & Income Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
DIRECT SHARES 2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of period $ 7.10 $ 6.18 $ 5.80 $ 7.13 $ 9.59
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.15 0.16 0.11 0.10 0.08
Net loss on securities (both
realized and unrealized) 1.48 0.89 0.35 (1.34) (2.46)
--------------------------------------------------------------------
Total from Investment Operations 1.63 1.05 0.46 (1.24) (2.38)
--------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.16) (0.13) (0.08) (0.09) (0.08)
Distributions from capital gains -- -- -- -- --
--------------------------------------------------------------------
Total distributions (0.16) (0.13) (0.08) (0.09) (0.08)
--------------------------------------------------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A N/A N/A N/A
--------------------------------------------------------------------
Net asset value, end of year $ 8.57 $ 7.10 $ 6.18 $ 5.80 $ 7.13
====================================================================
Total Return 23.15% 17.04% 8.17% (17.50)% (24.87)%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ( in 000's) $ 5,024 $ 3,923 $ 3,364 $ 2,357 $ 2,106
Ratio of expenses to average net assets:
Before expense reimbursements 1.55% 1.72% 1.99% 1.99% 2.17%
After expense reimbursements 0.98% 0.95% 0.95% 0.95% 0.95%
Ratio of net investment income to average net assets
Before expense reimbursements 1.41% 1.17% 0.83% 0.30% (0.18)%
After expense reimbursements 1.98% 1.94% 1.87% 1.34% 1.04%
Portfolio Turnover 1.47% 2.01% 0.00% 9.70% 19.75%
Year Ended October 16, 2003*
August 31, to August 31,
K SHARES 2005 2004
-----------------------------
Net asset value, beginning of period $ 7.11 $ 6.61
-----------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.10 0.08
Net loss on securities (both
realized and unrealized) 1.51 0.48
-----------------------------
Total from Investment Operations 1.61 0.56
-----------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.12) (0.06)
Distributions from capital gains -- --
-----------------------------
Total distributions (0.12) (0.06)
-----------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A
-----------------------------
Net asset value, end of period $ 8.60 $ 7.11
=============================
Total Return 22.78% 8.43%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ( in 000's) $ 3,052 $ 1,177
Ratio of expenses to average net assets:
Before expense reimbursements 2.07% 2.22%**
After expense reimbursements 1.50% 1.45%**
Ratio of net investment income to average net assets
Before expense reimbursements 0.89% 0.67%**
After expense reimbursements 1.46% 1.44%**
Portfolio Turnover 1.47% 2.01%
* Commencement of operations.
** Annualized.
(a) Less than $0.01 per share
See accompanying notes to financial statements
62
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
(CONTINUED)
- --------------------------------------------------------------------------------
Nasdaq-100 Index Fund
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, August 31, August 31, August 31, August 31,
DIRECT SHARES 2005 2004 2003 2002 2001
--------------------------------------------------------------------
Net asset value, beginning of year $ 3.46 $ 3.41 $ 2.41 $ 3.75 $ 10.67
--------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (loss) 0.03 (0.01) (0.01) - (a) 0.05
Net gain (loss) on securities (both
realized and unrealized) 0.51 0.06 1.01 (1.33) (6.84)
--------------------------------------------------------------------
Total from Investment Operations 0.54 0.05 1.00 (1.33) (6.79)
--------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) -- -- (0.01) (0.08)
Distributions from capital gains -- -- -- -- (0.05)
--------------------------------------------------------------------
Total distributions (0.02) -- -- (0.01) (0.13)
--------------------------------------------------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A N/A N/A N/A
--------------------------------------------------------------------
Net asset value, end of year $ 3.98 $ 3.46 $ 3.41 $ 2.41 $ 3.75
====================================================================
Total Return 15.47% 1.47% 41.49% (35.61)% (64.26)%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year ( in 000's) $ 15,161 $ 14,349 $ 14,928 $ 9,191 $ 11,390
Ratio of expenses to average net assets:
Before expense reimbursements 0.95% 0.91% 1.05% 0.99% 0.90%
After expense reimbursements 0.71% 0.65% 0.65% 0.64% 0.65%
Ratio of net investment income to average net assets
Before expense reimbursements 0.41% (0.62)% (0.80)% (0.45)% 0.14%
After expense reimbursements 0.65% (0.36)% (0.40)% (0.10)% 0.39%
Portfolio Turnover 9.94% 8.82% 8.64% 4.18% 13.82%
Year Ended October 16, 2003*
August 31, to August 31,
K SHARES 2005 2004
-----------------------------
Net asset value, beginning of period $ 3.45 $ 3.62
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (loss) -- (0.01)
Net gain (loss) on securities (both
realized and unrealized) 0.52 (0.16)
-----------------------------
Total from Investment Operations 0.52 (0.17)
-----------------------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.01) --
Distributions from capital gains -- --
-----------------------------
Total distributions (0.01) --
-----------------------------
Paid in capital from redemption fee (Note 1) (0.00)(a) N/A
-----------------------------
Net asset value, end of period $ 3.96 $ 3.45
=============================
Total Return 15.13% (4.70)%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period ( in 000's) $ 3,417 $ 1,651
Ratio of expenses to average net assets:
Before expense reimbursements 1.46% 1.41%**
After expense reimbursements 1.22% 1.15%**
Ratio of net investment income to average net assets
Before expense reimbursements (0.10)% (1.12)%**
After expense reimbursements 0.14% (0.86)%**
Portfolio Turnover 9.94% 8.82%
* Commencement of operations.
** Annualized.
(a) Less than $0.01 per share
See accompanying notes to financial statements
63
- --------------------------------------------------------------------------------
CALIFORNIA INVESTMENT NOTES TO FINANCIAL 8/31/2005
TRUST STATEMENTS
- --------------------------------------------------------------------------------
Note 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
California Tax-Free Money Market Fund, California Tax-Free Income Fund and
California Insured Intermediate Fund are separate series of shares of beneficial
interest of California Investment Trust. U.S. Government Securities Fund, The
United States Treasury Trust, S&P 500 Index Fund, S&P MidCap Index Fund, S&P
SmallCap Index Fund, Equity Income Fund, European Growth & Income Fund,
Nasdaq-100 Index Fund and Short-Term U.S. Government Bond Fund are separate
series of shares of beneficial interest of California Investment Trust II. Both
Trusts are registered under the Investment Company Act of 1940, as amended, as
diversified open-end management investment companies. Both Trusts were organized
as Massachusetts business trusts on September 11, 1985 and are authorized to
issue an unlimited number of no par value shares in one or more series. The
investment objectives of the Funds are as follows: California Tax-Free Income
Fund and California Insured Intermediate Fund seek as high a level of income
exempt from federal and California personal income taxes as is consistent with
prudent investment management and safety of capital. California Tax-Free Money
Market Fund seeks capital preservation, liquidity and the highest achievable
current income exempt from both federal and California personal income taxes
consistent with safety. U.S. Government Securities Fund seeks safety from credit
risk, liquidity, and as high a level of income as is consistent with these
objectives by investment in full faith and credit obligations of the U.S.
Government and its agencies or instrumentalities. The United States Treasury
Trust seeks preservation of capital, safety, liquidity and consistent with these
objectives, the highest attainable current income exempt from state income
taxes. S&P 500 Index Fund, S&P MidCap Index Fund and S&P SmallCap Index Fund are
diversified mutual funds that seek to provide investment results that correspond
to the total return of publicly traded common stocks represented in the Standard
& Poor's 500 Composite Stock Price Index, the Standard & Poor's MidCap 400 Index
and the Standard & Poor's SmallCap 600 Index, respectively. The Equity Income
Fund seeks a high level of income and capital appreciation (when consistent with
high income) by investing primarily in income-producing U.S. equity securities.
European Growth & Income Fund seeks to provide long-term capital appreciation
and income. By investing in large-sized European companies Nasdaq-100 Index Fund
attempts to replicate the performance of the largest non-financial companies as
measured by the Nasdaq-100 Index. Short-Term U.S. Government Bond Fund seeks
liquidity, safety from credit risk, preservation of investors principal and has
a high level of income as is consistent with these objectives by investing in
mainly U.S. government securities. The following is a summary of significant
accounting policies followed by the Funds.
California Investment Trust II began offering an additional class of
shares, Class K, on October 16, 2003. Income and expenses of the Funds are
allocated proportionately to the two classes of shares offered based on the
daily net assets, except for Rule 12b-1 distribution fees and shareholder
service fees, which are charged only to K Shares.
(a) Security Valuation --- Portfolio securities of the S&P 500, S&P MidCap
and S&P SmallCap Index Funds, Equity Income Fund, European Growth & Income Fund,
and Nasdaq-100 Index Fund listed on a national exchange are valued at the last
reported sales price. U.S. Treasury Bills are valued at amortized cost which
approximates market value. Portfolio securities of the California Tax-Free
Income Fund and the California Insured Intermediate Fund are valued by an
independent pricing service that uses market quotations, representing the latest
available bid price, prices provided by market makers, or estimates of market
values obtained from yield data relating to instruments or securities with
similar characteristics, in accordance with procedures established by the Board
of Trustees. The U.S. Government Securities Fund and the Short-Term U.S.
Government Bond Fund are valued by an independent pricing service that uses
market quotations representing the latest available mean between the bid and ask
price, prices provided by market makers or estimates of market value obtained
from yield data relating to instruments or securities with similar
characteristics. Securities with remaining maturities of 60 days or less are
valued on the amortized cost basis as reflecting fair value. All other
securities are valued at their fair value as determined in good faith by the
Funds' ("Board of Trustees"). California Tax-Free Money Market Fund and The
United States Treasury Trust securities are valued at amortized cost which the
Board of Trustees has determined in good faith to constitute fair value.
(b) Futures Contracts --- Initial margin deposits required upon entering
into futures contracts are satisfied by the segregation of specific securities
or cash, as collateral, for the account of the broker (a Fund's agent in
acquiring the futures position). During the period the futures contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking to market" on a daily basis to reflect the market value of
the contract at the end of each day's trading. Variation margin payments are
made or received depending upon whether unrealized gains or losses are incurred.
When the contract is closed, a Fund records a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction and
the Fund's basis in the contract. The S&P 500 Index Fund, S&P MidCap Index Fund,
S&P SmallCap Index Fund, Equity Income, European Growth & Income Fund and
Nasdaq-100 Index Fund may purchase or sell stock index futures to maintain cash
reserves while remaining fully invested, to facilitate trading, to reduce
transaction costs, or to seek higher investment returns when a futures contract
is priced more attractively than the underlying equity security or index. Risks
include the possibility of an illiquid market and an imperfect correlation
between the change in market value of the stocks held by a Fund and the prices
of futures contracts.
(c) Federal Income Taxes --- No provision is considered necessary for
federal income taxes. The Funds intend to qualify for and elect the tax
treatment applicable to regulated investment companies under the Internal
Revenue Code and to distribute all of their taxable income to shareholders.
Capital loss carry forwards, as of August 31, 2005, available to offset future
capital gains, if any, are as follows:
U.S. Govt. Short Term European
Expiring Tax Free MM Securities Govt. Bond Fund S&P 500 Growth & Income Nasdaq-100
- --------------------------------------------------------------------------------------------------------------------
2007 -- -- -- -- 806 --
2008 -- -- -- -- 53,456 537,333
2009 -- -- -- 6,120,424 40,585 2,356,290
2010 -- -- -- -- -- --
2011 -- -- -- 2,790,405 104,291 3,015,439
2012 3,258 -- -- -- 2,426 1,963,355
2013 -- 19,438 15,901 -- 59,164 2,084,713
- --------------------------------------------------------------------------------------------------------------------
Total 3,258 19,438 15,901 8,910,829 260,728 9,957,130
====================================================================================================================
64
- --------------------------------------------------------------------------------
CALIFORNIA INVESTMENT NOTES TO FINANCIAL 8/31/2005
TRUST STATEMENTS
CONTINUED
- --------------------------------------------------------------------------------
Accounting principles generally accepted in the United States of America
require certain components of net assets be reclassified between financial and
tax reporting. These reclassifications have no effect on net assets or net asset
value per share. For the year ended August 31, 2005, permanent differences
between book and tax accounting have been reclassified to paid-in capital,
undistributed net investment income/loss and accumulated realized gain/loss as
follows:
Increase (Decrease) Increase (Decrease)
Increase (Decrease) Undistributed Net Accumulated
Paid-in capital Investment Income (Loss) Gain/(Loss)
--------------- ------------------------ -----------
California Insured Intermediate Fund -- (3,152) 3,152
California Tax-Free Income Fund -- (130,323) 130,323
U.S. Government Securities Fund 11 (4) (7)
The United States Treasury Trust (105) 105 --
Short-Term U.S. Government Bond Fund (8) -- 8
Equity Income Fund 5,116 (5,116) --
(d) Security Transactions, Investment Income and Distributions to
Shareholders --- Security transactions are recorded on the trade date. Interest
income is recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date. Distributions to shareholders are recorded on the ex-dividend
date for the California Tax-Free Income Fund, the California Insured
Intermediate Fund, the U.S. Government Securities Fund, S&P 500 Index Fund, S&P
MidCap Index Fund, S&P SmallCap Index Fund, Equity Income Fund, European Growth
& Income Fund, Nasdaq-100 Index Fund and Short-Term U.S. Government Bond Fund.
Income distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from accounting principles
generally accepted in the United States of America. These differences are
primarily due to differing treatments for futures contracts, redemptions-in-kind
and post-October capital losses. For the California Tax-Free Money Market Fund
and The United States Treasury Trust, dividends from net investment income are
declared daily and reinvested or paid in cash monthly. The two Funds intend to
maintain a continuous net asset value per share of $1.00. If net asset value per
share using available market information deviates from $1.00 by $.005 or more,
the Board of Trustees would consider what steps, if any, should be taken to
restore net asset value per share to $1.00.
(e) Concentration --- The California Tax-Free Income Fund, the California
Insured Intermediate Fund and the California Tax-Free Money Market Fund invest
in debt instruments of municipal issuers. The issuer's abilities to meet their
obligations may be affected by economic developments in the state of California.
(f) Use of Estimates in Financial Statements --- In preparing financial
statements in conformity with accounting principles generally accepted in the
United States of America, management makes estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements, as well as the reported amounts of income and expense during the
year. Actual results may differ from these estimates.
(g) Share Valuations --- The net asset value ("NAV") per share of each
Fund is calculated by dividing the sum of the value of the securities held by
the Fund, plus cash or other assets, minus all liabilities (including estimated
accrued expenses) by the total number of shares outstanding of the Fund, rounded
to the nearest cent. A Fund's shares will not be priced on the days on which the
NYSE is closed for trading. Bond and Money Market Funds are closed on Columbus
Day(observed) and Veteran's Day (observed)The offering and redemption price per
share of each Fund is equal to a Fund's net asset value per share. Shares of
certain funds were charged a 1% redemption fee on shares redeemed or exchanged
within one month of purchase. These fees were deducted from the redemption
proceeds otherwise payable to the shareholder. Each Fund retained the fee
charged as paid-in capital and such fees became part of that Fund's daily NAV
calculation. The redemption fee was established January 1, 2005.
Note 2 --- INVESTMENT MANAGEMENT FEE AND OTHER RELATED PARTY TRANSACTIONS
CCM Partners ("CCM"), a California limited partnership, provides each Fund
with management and administrative services pursuant to a Management Agreement.
In accordance with the terms of the management agreements with California
Tax-Free Money Market Fund, California Tax-Free Income Fund, California Insured
Intermediate Fund, U.S. Government Securities Fund, and The U.S. Treasury Trust,
CCM receives compensation at the annual rate of 0.50% of the Funds' average
daily net assets not exceeding $100 million, 0.45% on net assets from $100
million to $500 million, and 0.40% on net assets above $500 million. In
accordance with the terms of the management agreements with the S&P 500 Index
Fund and S&P MidCap Index Fund, CCM receives compensation at the annual rate of
0.25% and 0.40%, respectively, of the Funds' average daily net assets. In
accordance with the terms of the management agreements with the S&P SmallCap
Index Fund, Equity Income Fund, Nasdaq-100 Index Fund and Short-Term U.S.
Government Bond Fund, CCM receives compensation at the annual rate of 0.50% of
the first $500 million of net assets, plus 0.45% on net assets from $500 million
to $1 billion, and 0.40% of net assets above $1 billion. In accordance with the
terms of the management agreement with the European Growth & Income Fund, CCM
receives compensation at the annual rate of 0.85% of the Fund's average daily
net assets. CCM has agreed to reduce its fee by, or reimburse the respective
Funds for, any amount necessary to prevent a Fund's total expenses, excluding
extraordinary items, from exceeding 1.00% of that Fund's average daily net
assets. CCM has voluntarily reimbursed more expenses than contractually
obligated. This voluntary reimbursement is effective for a calendar year,
renewal at the end of each calendar year and is not subject to recoupment.
Reimbursement from the manager for the year ended August 31, 2005, is as
follows:
Voluntary Expense Limitation
Direct Shares K Shares
Fund Reimburse 9/1/04-1/3/05 Beginning 1/4/05 9/1/04-1/3/05 Beginning 1/4/05 Expiration
- ---- --------- ------------- ---------------- ------------- ---------------- ----------
California Tax-Free Money Market Fund $ 148,649 0.44% 0.53% N/A N/A 12/31/05
California Insured Intermediate Fund $ 32,208 0.59% 0.68% N/A N/A 12/31/05
Short-Term U.S. Government Bond Fund $ 23,631 0.50% 0.59% 1.00% 1.09% 12/31/05
U.S. Government Securities Fund $ 111,758 0.65% 0.74% 1.15% 1.24% 12/31/05
The United States Treasury Trust $ 48,289 0.44% 0.53% 0.94% 1.03% 12/31/05
S&P 500 Index Fund $ 149,088 0.27% 0.36% 0.77% 0.86% 12/31/05
S&P MidCap Index Fund $ 56,893 0.49% 0.58% 0.99% 1.08% 12/31/05
S&P SmallCap Index Fund $ 42,321 0.65% 0.74% 1.15% 1.24% 12/31/05
Equity Income Fund $ 2,762 0.80% 0.89% 1.30% 1.39% 12/31/05
European Growth & Income Fund $ 38,812 0.95% 1.00% 1.45% 1.50% 12/31/05
Nasdaq-100 Index Fund $ 43,017 0.65% 0.74% 1.15% 1.24% 12/31/05
65
As compensation for administrative duties, CCM receives an administration
fee, which became effective February 28, 2005. The administration fee is based
on assets held, in aggregate, by the Funds comprising California Investment
Trust and California Investment Trust II. The fee rates are 0.10% on the first
$100 million, 0.08% on the next $400 million, and 0.06% on combined assets over
$500 million.
Certain officers and trustees of the Trusts are also partners of CCM.
Michael O'Callaghan has served as the Chief Compliance Officer ("CCO") of the
Trusts since August 2004. Mr. O'Callaghan is also employed by CCM Partners, the
Advisor and Administrator to the Trusts. The Trusts are responsible for the
portion of his salary allocated to his duties as the CCO of the Trusts and CCM
Partners is reimbursed for this portion of his salary. The level of
reimbursement is reviewed and determined by the Trustees at least annually.
California Investment Trust II has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940, whereby
each Fund of California Investment Trust II pays the Distributor for expenses
that relate to the promotion and distribution of shares. Under the Plan, the
Funds will pay the Distributor a fee at an annual rate of 0.25%, payable
monthly, of each Fund's daily net assets attributable to such Fund's Class K
Shares.
California Investment Trust II has adopted a Shareholder Services Plan
(the "Services Plan"), whereby each Fund of California Investment Trust II pays
CCM Partners, LP, the Funds' Distributor or other service providers, an annual
rate of 0.25% of the average daily net assets of Class K Shares. Such amounts
are compensation for providing certain services to clients owning Class K
shares, including processing purchase and redemption transactions, assisting in
other administrative details and providing other information with respect to
each Fund.
For the year ended August 31, 2005, the following were paid by each Fund
of California Investment Trust II:
Fund 12b-1 Fees Shareholder Service Fee
- ---- ---------- -----------------------
U.S. Government Securities Fund ....... $ 7,999 $ 7,999
The United States Treasury Trust ...... $ 4,192 $ 4,192
Short-Term U.S. Government Bond Fund .. $ 3,444 $ 3,444
S&P 500 Index Fund .................... $ 9,118 $ 9,118
S&P Midcap Index Fund ................. $ 9,448 $ 9,448
S&P SmallCap Index Fund ............... $11,083 $11,083
Equity Income Fund .................... $ 5,747 $ 5,747
European Growth & Income Fund ......... $ 5,405 $ 5,405
Nasdaq-100 Index Fund ................. $ 6,375 $ 6,375
Note 3 --- PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities other than short-term investments during
the year ended August 31, 2005 were as follows:
Purchases Sales
--------- -----
California Tax-Free Income Fund ....... $44,051,648 $44,890,723
California Insured Intermediate Fund .. $ 2,127,635 $ 4,674,456
Short-Term U.S. Government Bond Fund .. $26,713,029 $24,214,801
U.S. Government Securities Fund ....... $10,040,897 $11,234,404
S&P 500 Index Fund .................... $ 3,681,397 $17,960,356
S&P Midcap Index Fund ................. $38,197,574 $26,363,879
Equity Income Fund .................... $ 2,565,202 $ 1,857,232
S&P SmallCap Index Fund ............... $ 4,509,830 $ 499,857
European Growth & Income Fund ......... $ 1,870,440 $ 95,062
Nasdaq-100 Index Fund ................. $ 1,917,392 $ 1,714,621
66
- --------------------------------------------------------------------------------
CALIFORNIA INVESTMENT NOTES TO FINANCIAL 8/31/2005
TRUST STATEMENTS
CONTINUED
- --------------------------------------------------------------------------------
Note 4
The tax character of distributions paid during the years ended August 31, 2005
and 2004 were as follows:
Ordinary Long-Term Exempt-Interest Total
Income Capital Gains Dividends Distributions
California Tax-Free Money Market Fund 2005 -- -- 1,062,279 1,062,279
2004 -- -- 461,912 461,912
California Insured Intermediate Fund 2005 -- 54,421 759,043 813,464
2004 10,062 68,620 835,074 913,756
California Tax Free Income Fund 2005 -- 2,641,599 5,919,149 8,560,748
2004 142,398 1,242,840 6,615,271 8,000,509
U.S. Government Securities Fund 2005 1,023,984 245,911 -- 1,269,895
2004 979,427 163,988 -- 1,143,415
The United States Treasury Trust 2005 777,049 -- -- 777,049
2004 260,901 -- -- 260,901
Short Term U.S. Government Bond Fund 2005 341,703 6,624 -- 348,327
2004 221,710 -- -- 221,710
S&P 500 Index Fund 2005 2,025,865 -- -- 2,025,865
2004 1,494,851 -- -- 1,494,851
S&P MidCap Index Fund 2005 1,241,578 -- -- 1,241,578
2004 788,031 -- -- 788,031
S&P Small Cap Index Fund 2005 222,097 1,041,049 -- 1,263,146
2004 109,483 125,962 -- 235,445
Equity Income Fund 2005 277,269 -- -- 277,269
2004 134,677 -- -- 134,677
European Growth & Income Fund 2005 127,879 -- -- 127,879
2004 78,858 -- -- 78,858
Nasdaq-100 Index Fund 2005 69,372 -- -- 69,372
2004 -- -- -- --
67
- --------------------------------------------------------------------------------
CALIFORNIA INVESTMENT NOTES TO FINANCIAL 8/31/2005
TRUST STATEMENTS
CONTINUED
- --------------------------------------------------------------------------------
The tax character of distributable earnings at August 31, 2005 were as follows:
Undistributed Undistributed Capital Unrealized Post Total
Ordinary Long Term Loss Carry Appreciation October Distributable
Income Capital Gain Forwards (Depreciation) Losses** Earnings
California Tax-Free Money Market Fund -- -- (3,258) -- -- (3,258)
California Insured Intermediate Fund -- 250,930 -- 464,002 -- 714,932
California Tax Free Income Fund 104,090 2,858,661 -- 10,656,592 -- 13,619,343
U.S. Government Securities Fund 2,997 -- (19,438) 333,336 (209,735) 107,160
The United States Treasury Trust 105 -- -- -- (2,708) (2,603)
Short Term U.S. Government Bond Fund 700 -- (15,901) (48,068) (176,191) (239,460)
S&P 500 Index Fund 263,477 -- (8,910,829) 22,797,760 (441,753) 13,708,655
S&P MidCap Index Fund 170,489 10,381,783 -- 42,274,380 -- 52,826,652
S&P Small Cap Index Fund 109,902 1,148,718 -- 8,731,259 -- 9,989,879
Equity Income Fund 42,664 433,755 -- 3,808,732 -- 4,285,151
European Growth & Income Fund 16,444 -- (260,728) 978,200 (9,717) 724,199
Nasdaq-100 Index Fund 33,047 -- (9,957,130) (1,980,379) (133,695) (12,038,157)
The difference between book basis and tax basis unrealized appreciation is
attributable primarily to the realization for tax purposes of unrealized gains
on future contracts, wash sales, and other deferrals.
** Under the current tax law, capital losses realized after October 31 and
prior to the Funds' fiscal year end may be deferred as occuring on the
first day of the following fiscal year.
- --------------------------------------------------------------------------------
(UNAUDITED)
Fund Holdings: The Fund holdings shown in this report are as of August 31, 2005.
Holdings are subject to change at any time, so holdings shown in this report may
not reflect current fund holdings. The Funds file complete schedules of
portfolio holdings with the SEC for the first and third quarters of each fiscal
year on Form N-Q, the first of which will be filed for the quarter ending
November 30, 2004. The Funds' Form N-Q will be available on the SEC's web-site
at www.sec.gov and may be reviewed and copied at the Commission's Public
Reference Room to Washington, DC. Information on the operation of the Public
Reference Room may be obtained the information filed in the form N-Q copies of
which may be obtained by visiting the Funds' website at www.caltrust.com or by
calling 1(800) 225-8778.
Proxy Voting Record: The Funds' Statement of Additional Information ("SAI")
containing a description of the policies and procedures that the California
Investment Trust Fund Group uses to determine how to vote proxies relating to
portfolio securities, along with each Fund's proxy voting record relating to
portfolio securities held during the 12-month period ended June 30, 2005, is
available upon request, at no charge, at the phone number and website below or
on the SEC's website at www.sec.gov.
This report is submitted for the general information of the shareholders of the
California Investment Trust Fund Group. It is authorized for distribution only
if preceded or accompanied by a current California Investment Trust Fund Group
prospectus. Additional copies of the prospectus may be obtained by calling (800)
225-8778 or can be downloaded from the Funds' website at www.caltrust.com.
Please read the prospectus carefully before you invest or send money, as it
explains the risks, fees and expenses of investing in the Funds.
68
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees
California Investment Trust
California Investment Trust II
We have audited the accompanying statements of assets and liabilities of
California Tax-Free Money Market Fund, California Insured Intermediate Fund and
California Tax-Free Income Fund, each a series of shares of beneficial interest
of California Investment Trust, and the U.S. Government Securities Fund, The
United States Treasury Trust, Short-Term U.S. Government Bond Fund, S&P 500
Index Fund, S&P MidCap Index Fund, S&P SmallCap Index Fund, Equity Income Fund,
European Growth & Income Fund and Nasdaq-100 Index Fund, each a series of shares
of beneficial interest of California Investment Trust II, including the
portfolios of investments as of August 31, 2005, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
the periods indicated thereon. These financial statements and financial
highlights are the responsibility of the Trusts' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Trusts' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Trusts' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 2005, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
California Tax-Free Money Market Fund, California Insured Intermediate Fund,
California Tax-Free Income Fund, the U.S. Government Securities Fund, The United
States Treasury Trust, Short-Term U.S. Government Bond Fund, S&P 500 Index Fund,
S&P MidCap Index Fund, S&P SmallCap Index Fund, Equity Income Fund, European
Growth & Income Fund and Nasdaq-100 Index Fund as of August 31, 2005, the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended, and the financial
highlights for the periods referred to above, in conformity with accounting
principles generally accepted in the United States of America.
Tait, Weller & Baker LLP
Philadelphia, Pennsylvania
October 14, 2005
69
- --------------------------------------------------------------------------------
BOARD OF TRUSTEES AND EXECUTIVE OFFICERS
(UNAUDITED)
- --------------------------------------------------------------------------------
Overall responsibility for management of the Funds rests with the Board of
Trustees. The Trustees serve during the lifetime of the Trust and until its
termination, or until death, resignation, retirement or removal. The Trustees,
in turn, elect the officers of the Fund to actively supervise its day-to-day
operations. The officers have been elected for an annual term. The following are
the Trustees and Executive Officers of the Funds:
Length of Time
Trustee Address Date of Birth Position Held with the Trust Served
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen C. Rogers 44 Montgomery St. #2100 06/27/66 President, Secretary & Trustee Since August 1998
San Francisco, CA 94104 Chief Executive Officer, CCM Partners
- ------------------------------------------------------------------------------------------------------------------------------------
Harry Holmes P.O. Box 714 12/05/25 Trustee Since September 1985
Pebble Beach, CA 93953
- ------------------------------------------------------------------------------------------------------------------------------------
John B. Sias 580 California Street 01/22/27 Trustee Since March 1991
San Francisco, CA 94103
- ------------------------------------------------------------------------------------------------------------------------------------
James Miller One Front Street, Suite 300 05/28/66 Trustee Since August 2001
San Francisco, CA 94111
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher P. Browne 44 Montgomery St. #2100 02/07/67 Treasurer Since October 2004
San Francisco, CA 94104
- ------------------------------------------------------------------------------------------------------------------------------------
Each Trustee oversees twelve portfolios of the Trusts, including the Funds. The
principal occupations of the Trustees and Executive Officers of the Fund during
the past five years and public directorships held by the Trustees are set forth
below:
*Stephen C. Rogers Chief Executive Officer, CCM Partners, 1999 to present;
Chief Operating Officer, CCM Partners 1997 to 1999;
Administrative Officer, CCM Partners 1993-1997;
Marketing Representative, CCM Partners, 1992 to 1993.
Harry Holmes Principal, Harry Holmes & Associates (consulting);
President and Chief Executive Officer, Aspen Skiing
Company, 1982-1984; President and Chief Executive
Officer, Pebble Beach Company (property management),
1973-1984.
John B. Sias Director Enzo Biochem, Inc., 1982 to present; Chairman,
President and CEO, Chronicle Publishing Company, 1993 to
2000; Director, Executive Vice President, Capital
Cities/ABC Inc. and President, ABC Network T.V. Group
1986 to 1992.
James Miller Vice President, Jones Lange LaSalle Americas, Inc. 1999
to present; Associate, Orrick Herrington & Sutcliffe
LLP, 1996-1999; Associate, Gordon & Rees LLP, 1992-1993.
Christopher P. Browne Portfolio Manager, CIT Funds, 2004 to present; Manager,
Autodesk, 2000-2004; Principal, Baystar Capital,
1998-2000.
Additional information on the Trustees may be found in the SAI.
* Trustee deemed to be an "interested person" of the Trusts, as defined in the
Investment Company Act of 1940.
70
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California Investment Trust and California Investment Trust II
Proposed 15(c) Disclosure Regarding Approval of the Management Agreement
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At a meeting held on March 1, 2005, the Boards of Trustees of California
Investment Trust and California Investment Trust II, on behalf of the Trusts'
California Tax-Free Income Fund, California Insured Intermediate Fund,
California Tax-Free Money Market Fund, S&P 500 Index Fund, S&P MidCap Index
Fund, S&P SmallCap Index Fund, Equity Income Fund, Nasdaq-100 Index Fund,
European Growth & Income Fund, U.S. Government Securities Fund, Short-Term U.S.
Govt. Bond Fund and The United States Treasury Trust (each a Fund), considered
and approved the continuance of the Management Agreement with respect to each
Fund with CCM Partners (CCM) for an additional one-year period ending February
28, 2006. Prior to the meeting, the Independent Trustees had requested detailed
information from CCM. This information together with other information provided
by CCM and the information provided to the Independent Trustees throughout the
course of year formed the primary (but not exclusive) basis for the Board's
determinations as summarized below. The information, material factors and
conclusions that formed the basis for the Board's subsequent approval are
described below.
1. Information Received
Materials reviewed - During the course of each year, the independent Trustees
receive a wide variety of materials relating to the services provided by CCM,
including reports on each Fund's investment results; portfolio composition;
portfolio trading practices; shareholder services; and other information
relating to the nature, extent and quality of services provided by CCM to the
Funds. In addition, the Board requests and reviews supplementary information
that includes materials regarding each Fund's investment results, advisory fee
and expense comparisons, financial and profitability information regarding CCM,
descriptions of various functions such as compliance monitoring and portfolio
trading practices, and information about the personnel providing investment
management and administrative services to each Fund.
Review Process. The Board received assistance and advice regarding legal and
industry standards from independent counsel to the independent Trustees. The
Board discussed the renewal of the agreement with CCM representatives and in a
private session with independent legal counsel at which no representatives of
CCM were present. In deciding to recommend the renewal of the agreement, the
committee did not identify any single issue or particular information that, in
isolation, was the controlling factor. This summary describes the most
important, but not all, of the factors considered by the Board.
2. Nature, Extent and Quality of Services
CCM, its personnel and its resources. The Board considered the depth and quality
of CCM's investment management process; the experience, capability and integrity
of its senior management and other personnel; the turnover rates of its
personnel; and the overall financial strength and stability of its organization.
The Board also considered that CCM made available to its investment
professionals a variety of resources relating to investment management,
compliance, trading, performance and portfolio accounting. The Board further
considered CCM's continuing need to attract and retain qualified personnel and
determined that, although CCM faced a challenging environment with respect to
staffing during the past year, CCM was adequately managing matters related to
the Funds.
Other Services. The Board considered CCM's policies, procedures and systems to
ensure compliance with applicable laws and regulations and its commitment to
these programs; its efforts to keep the Trustees informed; and its attention to
matters that may involve conflicts of interest with the Funds. The Board also
considered the nature, extent, quality and cost of certain administrative
services provided by CCM not covered by the Funds' agreements with its other
service providers.
The Board concluded that the CCM had the quality and depth of personnel and
investment methods essential to performing its duties under the Management
Agreement, and that the nature, extent and overall quality of such services are
satisfactory and reliable.
3. Investment Performance
The Board considered each Fund's unique, balanced pursuit of its investment
objectives and the investment results of each Fund in light of its objectives.
The Trustees reviewed the short-term and long-term performance of each of the
Funds on both an absolute basis and in comparison to benchmark indices. The
Trustees also reviewed the Morningstar or iMoneyNet rankings for each of the
Funds, as applicable. In assessing performance of certain Funds, the Trustees
took into consideration the fact that Fund performance is expected to mirror the
appropriate benchmarks as closely as possible given certain practical
constraints imposed by the Investment Company Act, the Fund's investment
restrictions, the Fund's size and similar factors.
o For the California Insured Intermediate Fund, it was noted that the
performance of the Fund was in the third quartile for the 1-year and
5-year periods and in the second quartile for the 3-year (annualized) and
10-year (annualized) periods. The Board took into consideration the fact
that the Fund's investment restrictions require it to maintain a higher
credit quality portfolio than the Morningstar comparison group for the
Fund, and accordingly that the Fund's ranking may reflect a comparison to
certain other funds with lower credit quality portfolios.
o For the California Tax-Free Money Market Fund, it was noted that the
performance of the Fund was in the top quartile for the 1-month
(annualized) and 12-month-to-date periods.
o For the California Tax-Free Income Fund, it was noted that although the
performance of the Fund was in the bottom quartile for the 1-year period,
Fund performance was ranked in the third quartile for the 3-year
(annualized) and 5-year (annualized) periods and in the second quartile
for the 10-year (annualized) and 15-year (annualized) periods. The
Trustees also observed that the Morningstar comparison group for the Fund
may not provide the most suitable category for peer analysis and
considered whether the Lehman municipal bond index should be added as a
benchmark for Fund performance. The Trustees also took into consideration
the change in portfolio manager and the efforts being made to reposition
the portfolio with minimal realization of capital gain.
o For the Equity Income Fund, it was noted that the performance of the Fund
was in the top quartile for the 1-year and 3-year periods. The Board also
noted that the Fund outperformed the benchmark index in the 3-year
(annualized) and 5-year (annualized) periods.
71
o For the European Growth & Income Fund, it was noted that the performance
of the Fund was in the bottom quartile for the 1-year period and in the
third quartile for the 3-year period. The Fund underperformed the
benchmark index in the 1-year and 3-year (annualized) periods, but
outperformed the benchmark index in the quarterly period. The Board also
noted the Fund's average annual total return over the year-to-date, 1-year
and 3-year periods outperformed the average annual total return of a
benchmark index during such periods.
o For the Nasdaq-100 Index Fund, it was noted that the performance of the
Fund was in the top quartile for the 1-year and 3-year periods. The Board
also considered that the Fund outperformed the benchmark index in the
quarterly period and noted with approval that the Fund was tracking its
asset class tightly.
o For the S&P 500 Index Fund, it was noted that the performance of the Fund
was in the second quartile over the 1-year, 3-year and 5-year periods and
in the top quartile for the 10-year period. The Fund also outperformed the
relevant benchmark index in the 3-year (annualized) and the 5-year
(annualized) periods. The Trustees noted with approval that the Fund was
tracking its asset class tightly.
o For the S&P MidCap Index Fund, it was noted that the performance of the
Fund was in the third quartile over the 1-year period, in the second
quartile over the 3-year and 5-year periods and in the top quartile for
the 10-year period. The Fund also outperformed the benchmark index in the
5-year (annualized) and 10-year (annualized) periods. The Board also noted
the Fund's positive absolute performance over every annual period measured
with one exception. The Trustees noted with approval that the Fund was
tracking its asset class tightly.
o For the S&P SmallCap Index Fund, it was noted that the performance of the
Fund was in the top quartile for the 1-year period and in the second
quartile over the 3-year period. The Fund marginally underperformed the
benchmark index in the 1-year, 3-year (annualized) and 5-year (annualized)
periods, but outperformed the benchmark index in the most recent quarterly
period. The Trustees noted that in general the Fund was tracking its asset
class tightly.
o For the Short-Term U.S. Govt. Bond Fund, it was noted that the performance
of the Fund was in the bottom quartile for the 1-year and 3-year
(annualized) periods. The Board noted that the Morningstar comparison
group for the Fund did not provide the most suitable category for peer
analysis, and determined that the Lehman 1 to 3 year index should be added
as a benchmark for Fund performance for future evaluations.
o For the U.S. Government Securities Fund, it was noted that the performance
of the Fund was in the second quartile for the 1-year and 3-year
(annualized) periods, the top quartile for the 10-year (annualized) period
and the top 5% for the 15-year (annualized) period.
o For The United States Treasury Trust, it was noted that the performance of
the Fund was in the top quartile for the 1-month (annualized) and
12-month-to-date periods.
The Board ultimately concluded that CCM's performance record in managing each
Fund was satisfactory and in several cases excellent,suport-ing the
determination that CCM's continued management was consistent with the best
interests of each Fund and its shareholders.
4. Management Fees and Total Operating Expenses
The Board reviewed the management fees and total operating expenses of each Fund
and compared such amounts with the industry average fees and expense levels of
other Funds in applicable Morningstar categories. The Board considered that the
total management fees charged to each Fund, with one exception, were below the
industry average and that with respect to two-thirds of the Funds the management
fees charged by CCM were significantly lower than the industry averages for such
Funds. In the case of the single exception, the Board noted that the management
fee charged to such Fund only slightly exceeded the industry average. The Board
observed that each Fund's total operating expenses were well below the industry
average of the other Funds, except that the operating expenses of the Class K
shares of three Funds marginally exceeded industry averages. In such cases, the
total operating expenses of such Funds (disregarding the Class K shares) were
below the industry average of Funds in comparable peer groups. The Board also
noted the voluntary advisory fee limitation that CCM put into effect during 2004
with respect to all but one of the Funds. The Trustees noted that additional
administrative services not covered by the Funds' agreements with its other
service providers had been provided to the Funds by CCM at its own expense
during the year. The Board concluded that the relatively low level of the fees
charged by CCM should benefit the Fund and its shareholders.
5. Adviser, Costs, Level of Profits, Economies of Scale and Ancillary Benefits
The Board reviewed information regarding CCM's costs of providing services to
the Funds, as well as the resulting level of profits to CCM, noting that its
profits were not excessive. The Trustees noted that CCM had consistently
subsidized low expense ratios for the Funds over the years. The Board considered
CCM's need to invest in technology, infrastructure and staff to reinforce and
offer new services and to accommodate changing regulatory requirements by
dedicating additional resources to its compliance program. They further
considered that breakpoints in the advisory fee structure of certain Funds
provide for reductions in the level of fees charged by CCM to such Fund as Fund
assets increase, reflecting economies of scale in the cost of operations that
will be shared with such Fund's shareholders. The Trustees also noted that in
certain cases CCM has contractually agreed to limit its advisory fees of certain
Funds so that those Funds do not exceed their respective specified operating
expense limitations although such limitations currently may be decreased at the
option of CCM. The Board also considered that CCM does not receive substantial
indirect benefits from managing the Funds. On the basis of the foregoing, the
Board concluded that each Fund's cost structure was reasonable and that CCM was
committed to sharing economies of scale with each Fund and its shareholders, to
their benefit.
6. Conclusions
No single factor was determinative of the Board's decision to re-approve the
Management Agreement, but rather the Trustees based their determination on the
total mix of information available to them. Based on their review, including
their consideration of each of the factors referred to above, the Board
concluded that the Management Agreement, taking into account the new
administration fee, is fair and reasonable to each Fund and its shareholders,
that each Fund's shareholders received reasonable value in return for the
advisory fees and other amounts paid to CCM by the Fund, and that the amendment
and renewal of the agreement was in the best interests of each Fund and its
shareholders.
72
[LOGO] -------------
CALIFORNIA PRSRT STD
INVESTMENT TRUST U.S. Postage
---------------- PAID
FUND GROUP Permit #688
44 Montgomery Street #2100 Redwood City,
San Francisco, CA 94104 CA
-------------
ITEM 2. CODE OF ETHICS.
(a) The Registrant has adopted a code of ethics that applies to its principal
executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a
copy of its code of ethics that applies to its principal executive officer
and principal financial and accounting officer.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Registrant does not have an audit committee financial expert serving
on its audit committee.
(a) (2) N/A
(a) (3) The Registrant's board of trustees and audit committee have
determined that no "audit committee financial expert" is needed
because of the collective financial literacy and sophistication
possessed by the members of the audit committee as a whole.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees paid to the principal accountant for professional services
rendered by the principal accountant for the audit of the Registrant's annual
financial statements or for services that are normally provided by the principal
accountant in connection with statutory and regulatory filings or engagements
were $73,700 for the fiscal year ended August 31, 2005 and $71,550 for the
fiscal year ended August 31, 2004.
(b) Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related
services rendered by the principal accountant to the Registrant that are
reasonably related to the performance of the audit of the Registrant's financial
statements and are not reported under paragraph (a) of Item 4.
(c) Tax Fees
The aggregate fees paid to the principal accountant for tax compliance, tax
advice, and tax planning services rendered by the principal accountant to the
Registrant were $13,500 for the fiscal year ended August 31, 2005 and $11,500
for the fiscal year ended August 31, 2004.
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(d) All Other Fees
There were no other fees paid to the principal accountant for services rendered
by the principal accountant to the Registrant that are reasonably related to the
performance of the audit of the Registrant's financial statements and are not
reported under paragraphs (a)-(c) of Item 4.
(e) (1) The Registrant's audit committee is directly responsible for
approving the services to be provided by the auditors, including:
(i) pre-approval of all audit and audit-related services;
(ii) pre-approval of all non-audit related services to be provided to the
Registrant by the auditors;
(iii) pre-approval of all non-audit related services to be provided to the
Registrant by the auditors to the Registrant 's investment adviser
or to any entity that controls, is controlled by or is under common
control with the Registrant 's investment adviser and that provides
ongoing services to the Registrant where the non-audit services
relate directly to the operations or financial reporting of the
Registrant; and
(e) (2) All of the services provided to the Registrant described in
paragraphs (b)-(d) of Item 4 were pre-approved by the audit
committee.
(f) N/A
(g) The aggregate non-audit fees paid to the principal accountant for services
rendered by the principal accountant to the Registrant and the
Registrant's investment adviser and any entity controlling, controlled by
or under common control with the investment adviser that provides ongoing
services to the Registrant were $2,625 for the fiscal year ended August
31, 2005 and $2,500 for the fiscal year ended August 31, 2004.
(h) N/A
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS
Included under Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
N/A
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ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
N/A
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVEESTMENT
COMPANY AND AFFILIATED PURCHASERS.
N/A
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the Registrant's board of trustees since the
Registrant last provided disclosure in response to the requirements of Item
7(d)(2)(ii)(G) of Schedule 14A or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the Registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
270.30a-3(c))) are effective as of a date within 90 days of the filing date of
the report that includes the disclosure required by this paragraph, based on
their evaluation of these controls and procedures required by Rule 30a-3(b)
under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under
the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the Registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act that occurred during
the second fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 12. EXHIBITS
(a) (1) Code of Ethics
(a) (2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(b) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section
906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
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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.
California Investment Trust II
By (Signature and Title)* /s/ Stephen C. Rogers
------------------------------------
Stephen C. Rogers, President Date: November 9, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Stephen C. Rogers
------------------------------------
Stephen C. Rogers, President Date: November 9, 2005
By (Signature and Title)* /s/ Christopher P. Browne
------------------------------------
Christopher P. Browne, Treasurer Date: November 9, 2005
* Print the name and title of each signing officer under his or her signature.
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