As filed with the Securities and Exchange Commission on March 6, 2003
File No. 811-3626
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANY
CITIZENS FUNDS
(Exact Name of Registrant as Specified in Charter)
230 Commerce Way, Portsmouth, New Hampshire 03801
(Address of Principal Executive Offices)
Registrant's Telephone Number, including Area Code: (603) 436-5152
Sophia Collier
Citizens Advisers, Inc.
230 Commerce Way
Portsmouth, NH 03801
(Name and Address of Agent for Service)
June 30, 2003
(Date of fiscal year end)
December 31, 2002
(Date of reporting period)
Item 1. Report to Shareholders.
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December 31, 2002 -- Semi-Annual Report
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CELEBRATING
[LOGO] CITIZENS
FUNDS(R)
o 20 YEARS
Citizens Core Growth Fund(R)
Citizens Emerging Growth Fund(R)
Citizens Small Cap Core Growth Fund(R)
Citizens Value Fund(SM)
Citizens Balanced Fund(SM)
Citizens Global Equity Fund(R)
Citizens International Growth Fund(R)
Citizens Income Fund(R)
Citizens Ultra Short Bond Fund(SM)
Citizens Money Market Fund(R)
CELEBRATING
[LOGO] CITIZENS
FUNDS(R)
o 20 YEARS
Table of Contents
President's Letter ........................................................ 1
Portfolio Review ........................................................... 2
Portfolio Holdings ......................................................... 10
Statements of Assets and Liabilities ....................................... 24
Statements of Operations ................................................... 26
Statements of Changes in Net Assets ........................................ 28
Financial Highlights ....................................................... 30
Notes to Financial Statements .............................................. 39
[PHOTO]
Dear Shareholder:
The second half of 2002 was a period where our fixed-income portfolios turned in
the best performance across our fund family. Investors have increasingly turned
to fixed-income investments, seeking to lower risk and earn a steady return from
dividends. In response to this interest, Citizens has launched two new funds --
the Citizens Ultra Short Bond Fund, which invests in high-quality, short-term
bonds, and the Citizens Balanced Fund, investing in both stocks and bonds.
In our equity portfolios, our focus has been to outperform our peers. Our
flagship equity fund, the Citizens Core Growth Fund, Standard shares,
outperformed 75% of its large cap equity peers (661 funds) for the one year
ended December 31, 2002 according to Lipper Analytical Services. While the
fund's average annual return for the same period was negative (-25.74%), since
inception on March 5, 1995 it has provided an average annual return of 7.82% and
outperformed 74% of the 166 large cap growth funds tracked by Lipper. Looking at
the long term it is clear that socially responsible equity investing can be
financially rewarding, however, the last three years of negative returns for our
equity funds and the market as a whole have been discouraging. [Note: for the
five-year period ended December 31, 2002, the fund's Standard shares had an
average annual return of -2.62%, and outperformed 55% of the 315 funds in its
peer group according to Lipper.]
One of our most important initiatives has been to seek to improve the corporate
governance and social responsibility of the companies in which we invest. While
some share prices have fallen due to the end of the high-tech bubble, other
declines have resulted from poor corporate governance practices. When Wall
Street woke up to scandals, share prices sold off sharply, taking the good
companies down with the bad. Citizens has taken a leadership role in seeking to
define best practices in corporate governance. In 2002 we filed two shareholder
resolutions at Cisco and Microsoft focusing on auditor independence. Although
neither resolution passed, they attained the highest favorable vote ever for a
non-management sponsored resolution at their respective companies.
Interestingly, the policy we advocated eventually became one of the core aspects
of the Sarbanes-Oxley Act, which has now become law.
In 2003 our social focus will remain on corporate governance and environmental
issues, both areas highlighted in our shareholder survey. Our plans include
encouraging companies to adopt specific and measurable energy conservation
programs. As we look at potential war in the Middle East I cannot help but
wonder how different our world would be if the United States was not dependent
on oil as a primary energy source. Conservation programs are more critical than
ever. And as social investors we also would point out that effective
conservation programs can help the bottom line. That's what social investing is
all about -- seeking better practices that can enhance investment returns and
make our world better at the same time. Thank you for being part of Citizens
Funds.
Sincerely yours,
/s/ Sophia Collier
Sophia Collier
President
Lipper rankings are based on total returns. Past performance does not guarantee
future results. Returns reflect expense reimbursements/ waivers in effect,
without which returns would have been lower. Investment return and principal
value of an investment in Citizens Funds mutual funds will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Please call (800) 223-7010 for a prospectus that contains complete details
of fees and expenses and should be read carefully before investing. Distributed
by Citizens Securities, Inc., Portsmouth, NH 03801
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Portfolio Review Citizens Core Growth Fund
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Goal:
Long-term capital appreciation
Strategy:
Invests mainly in stocks of large-capitalization U.S. companies
Inception Dates:
Standard shares 03/03/95
Institutional shares 01/25/96
Administrative shares 02/04/00
FOOTNOTES
All index and fund performance figures assume reinvestment of dividends and
distributions. Index results do not include costs of investing, which would
lower performance. The index is unmanaged and you cannot invest in it directly.
Past performance is not an indication of future results. Returns reflect expense
reimbursements/waivers in effect, without which returns would have been lower.
When you sell your fund shares, they may be worth more or less than what you
paid for them.
The S&P 500 Index is an unmanaged index of the common stock of 500 of the most
widely held companies in the U.S. stock market.
AVERAGE ANNUAL RETURNS
(AS OF 12/31/02) Ticker 6 1 5 Since
Symbol Months Year Years Inception
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Standard shares WAIDX -10.34% -25.74% -2.62% 7.82%
S&P 500 Index -- -10.30% -22.10% -0.59% 9.69%
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Institutional shares WINIX -10.03% -25.24% -1.94% 6.41%
Administrative shares CGADX -10.17% -25.47% -- -21.27%
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The last six months of 2002 saw the market sustain significant losses within a
relatively short period in the third quarter, and then regain some footing in
the fourth. Positive contributors in the fourth quarter included reports of
decreasing jobless claims, increasing durable goods orders, steadying consumer
confidence, and a surprising 50 basis point interest rate cut by the Federal
Reserve. Unfortunately, rising geopolitical tensions hampered the fourth quarter
rally as the markets sold off in December.
The fund's performance was in line with its benchmark, the S&P 500 Index, during
the six-month period ended December 31, 2002. This was achieved with underweight
positions versus the benchmark in industrials, energy and utilities, combined
with overweight positions in health care and information technology. Along with
good sector allocation, stock selection was also an important component of
performance in energy and industrials.
Within the health care sector, health care facilities and pharmaceutical and
biotechno-logy stocks helped performance as investors poured into these areas
based on new product developments, attractive valuations and fundamentals, and
excellent long-term growth prospects. In technology, owning the best-in-class
names in the software and hardware industries paid off as investors sought
safety in well-known companies with strong, free cash flows and minimal debt
loads.
Relative to the S&P 500 Index, an overweighting in consumer discretionary and a
neutral weighting in financial services negatively impacted the fund's
performance. The continued fallout over accounting irregularities, analyst
downgrades, and debt rating changes drove down companies within the cable and
media sectors. Also hurting performance in the discretionary sector were
specialty retail store stocks, which were sold off on news of weaker sales and
reduced profit outlooks. In the financial services area, money center banks and
investment services hurt the portfolio as investors sold off these positions due
to continuing fears of loan exposure to telecommunications companies, weak
quarterly earnings, and corporate governance issues.
Looking ahead, we are optimistic that the economy's current recovery will
continue and eventually accelerate, despite a murky earnings outlook and
somewhat mixed economic data. Low consumer and business confidence have
contributed to a self-reinforcing cycle where less confidence leads to lower
spending, which leads to lower confidence. We believe that the situation in Iraq
will be resolved within a relatively short time frame and this should allow
confidence to rebuild. Thus, we believe the necessary elements are in place to
insure a continued economic recovery and create an environment in which stocks
will do well again. From our perspective, we believe our investment focus on
high-quality, well-established, fundamentally strong and socially responsible
companies positions us well for the next year and beyond.
2
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Portfolio Review Citizens Emerging Growth Fund
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Goal:
Aggressive growth
Strategy:
Invests mainly in stocks of young, growing, medium-capitalization companies
Inception Dates:
Standard shares 02/08/94
Institutional shares 11/01/99
Administrative shares 02/04/00
FOOTNOTES
(1) Since inception return as of February 28, 1994.
All index and fund performance figures assume reinvestment of dividends
and distributions. Index results do not include costs of investing, which
would lower performance. The index is unmanaged and you cannot invest in
it directly. Past performance is not an indication of future results.
Returns reflect expense reimbursements/waivers in effect, without which
returns would have been lower. When you sell your fund shares, they may be
worth more or less than what you paid for them.
Investments in the Citizens Emerging Growth Fund involve unique risks, as
small- and medium-sized companies may have inexperienced management,
limited product lines, a difficult time obtaining financing or market
share, and their shares may be more volatile and not traded as frequently
or in as large a volume as larger companies.
The Russell MidCap(R) Growth Index measures the performance of those
Russell MidCap companies with higher price-to-book ratios and higher
forecasted growth values. The stocks are also members of the Russell 1000
Growth Index.
AVERAGE ANNUAL RETURNS
(AS OF 12/31/02) Ticker 6 15 Since
Symbol Months Year Years Inception
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Standard shares WAEGX -17.68% -28.72% 2.64% 9.82%
Russell MidCap Growth Index -- -9.59% -27.41% -1.82% 6.13%(1)
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Institutional shares CEGIX -17.39% -28.25% -- -14.65%
Administrative shares CGRDX -17.45% -28.44% -- -23.81%
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The plunge that occurred in the equity markets during the third quarter of 2002
was partially reversed in the fourth quarter as markets began to rally due to
leading economic indicators suggesting a recovery was in the making. Positive
factors included reports of decreasing jobless claims, increasing durable goods
orders, and steadying consumer confidence. Equity markets got a lift in October
and November when the Federal Reserve lowered interest rates by 50 basis points
and investors anticipated tax cuts in light of election results. This rally
helped beaten-down companies in certain sectors, which attracted many investors.
As always, we favored what we believe are high-quality companies that show
earnings acceleration, sustainable earnings, reasonable valuation, and credible,
motivated management teams. Despite a difficult market environment for growth
companies during the third quarter of 2002, many of our holdings rebounded
during the rally in the fourth quarter.
During the past six months, the fund's holdings in the consumer staples and
industrials sectors outperformed the Russell MidCap Growth Index in absolute
returns. Within these sectors, our holdings in food and drug retailing,
transportation, and commercial services and suppliers all moved higher based on
increasing sales and earnings, and improving outlooks. Additionally, our
exposure to well-known, high-quality companies in the consumer durables and
apparel industries such as the Columbia Sportswear Company, benefited
performance.
Compared to the benchmark, the fund's holdings in the information technology,
consumer discretionary, and health care sectors were relative underperformers.
Within the technology sector, we avoided the riskier growth opportunities that
rewarded others investing in the mid-cap growth universe in the fourth quarter.
Our holdings within the restaurants and specialty retail industries suffered in
tandem with declining consumer confidence. Despite consumers continuing to spend
their money on new homes and cars over the last six months, stocks in these
sub-sectors sold off as retail sales data pointed to future weakness. The health
care sector was another area of weakness for the fund -- the market turned away
from more defensive areas and many of the fund's holdings were hurt when a large
hospital company lowered profit guidance and announced the departures of several
executives.
We believe that our focus on the higher-quality mid-cap growth names will allow
us to outperform over the long term. While the recent economic indicators lean
toward economic recovery, the strength and depth of the recovery still remains
uncertain. Geopolitical tensions are particularly concerning. In this uncertain
environment, we maintain that the fundamentally strong and socially responsible
companies we have traditionally favored will be among those that do well in
2003.
3
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Portfolio Review Citizens Small Cap Core Growth Fund
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Goal:
Capital appreciation
Strategy:
Invests mainly in stocks of small-capitalization U.S. companies
Inception Date:
Standard shares 12/28/99
FOOTNOTES
All index and fund performance figures assume reinvestment of dividends and
distributions. Index results do not include costs of investing, which would
lower performance. The index is unmanaged and you cannot invest in it directly.
Past performance is not an indication of future results. Returns reflect expense
reimbursements/waivers in effect, without which returns would have been lower.
When you sell your fund shares, they may be worth more or less than what you
paid for them.
Investments in the Citizens Small Cap Core Growth Fund involve unique risks, as
small- and medium-sized companies may have inexperienced management, limited
product lines, a difficult time obtaining financing or market share, and their
shares may be more volatile and not traded as frequently or in as large a volume
as larger companies.
The Russell 2000 Growth Index measures the performance of those Russell 2000
companies with higher price-to-book ratios and higher forecasted growth values.
AVERAGE ANNUAL RETURNS
(AS OF 12/31/02) Ticker 6 1 Since
Symbol Months Year Inception
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Standard shares CSCSX -17.21% -25.42% -8.66%
Russell 2000 Growth Index -- -15.63% -30.26% -21.09%
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The last six months of 2002 began with a sluggish economy, continued concerns
over corporate accounting, and eroding investor confidence. Fortunately,
investor optimism increased significantly during the fourth quarter as reports
of a stronger economy began to emerge. Decreasing initial jobless claims, a
strong Gross Domestic Product growth number, and rising durable goods orders all
supported an emerging economic recovery. The Federal Reserve's surprising 50
basis point interest rate reduction also helped.
The fund's strategy during this period was to be positioned in more aggressive,
high-quality socially responsible names that would move higher based on a broad
economic recovery. However, investors did not embrace these high-quality names,
instead focusing on more speculative, high-risk securities primarily in the
technology and telecommunications services sectors -- especially during the
fourth quarter.
During the period, the fund's holdings in the consumer staples, industrials, and
health care sectors outperformed the Russell 2000 Growth Index in absolute
returns. Within the consumer staples and industrials sectors, our holdings in
supermarkets, transportation, and commercial services and suppliers all moved
higher with increasing sales and earnings, and improving outlooks. Additionally,
the fund benefited from our exposure to pharmaceuticals and biotechnology, which
had compelling valuations, strong fundamentals, and analyst upgrades. Another
positive factor, which specifically helped Cephalon, Inc., a holding of the
fund, was a Food and Drug Administration's shake-up that could potentially speed
up the approval of certain biotechnology drugs.
An overweighting in information technology and hospitals and services versus the
benchmark hurt performance. Despite the fund's technology holdings suffering
from a sell-off in the third quarter, and then participating strongly in the
fourth quarter rally, investors favored riskier, lower-quality names. The fund's
equipment and supplies holdings were negatively affected by Tenet Healthcare
Corporation acknowledging that its Medicare billing practices were being audited
by the U.S. Health and Human Services Department.
We believe recent data indicates that the economic recovery is progressing
moderately. Also, with market sentiment improving, we continue to believe the
foundation has been laid for the expansion to resume during the coming year.
With that said, we continue to be optimistic on the outlook for small-cap growth
stocks outperforming mid- and large-caps because of their relative insulation
from major geopolitical events, and their ability to react more quickly to
economic and market changes.
4
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Portfolio Review Citizens Value Fund
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Goal:
Long-term capital appreciation
Strategy:
Invests mainly in stocks and other equities of U.S. large-capitalization
companies
Inception Date:
Standard shares 6/13/96(2)
FOOTNOTES
(1) Includes performance of the fund's predecessor, the Meyers Pride Value
Fund for the periods prior to September 24, 2001.
(2) The inception date of the Citizens Value Fund's predecessor, the Meyer's
Pride Value Fund.
All index and fund performance figures assume reinvestment of dividends
and distributions. Index results do not include costs of investing, which
would lower performance. The index is unmanaged and you cannot invest in
it directly. Past performance is not an indication of future results.
Returns reflect expense reimbursements/waivers in effect, without which
returns would have been lower. When you sell your fund shares, they may be
worth more or less than what you paid for them.
The S&P 500 Index is an unmanaged index of the common stock of 500 of the
most widely held companies in the U.S. stock market.
AVERAGE ANNUAL RETURNS
(AS OF 12/31/02) Ticker 6 1 5 Since
Symbol Months Year Years Inception
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Standard shares(1) MYPVX -13.62% -40.50% -0.36% 4.00%
S&P 500 Index -- -10.30% -22.10% -0.59% 5.84%
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The second half of 2002 started out on a particularly tough note for investors
as the stock market (as measured by the S&P 500 Index) had its worst quarter
since 1987, with September being the worst month since 1937. This climate
changed in the fourth quarter as improving economic indicators rallied the
markets in October and November, before increasing geopolitical tensions caused
a pull-back in December.
Surprisingly, investors' aversion to risk in the fourth quarter gave way to
renewed interest in areas of the market that had been beaten down earlier in the
year -- particularly in information technology and telecommunications services.
Relative to the S&P 500 Index, our overweighting in technology and
telecommunications helped the absolute performance of the fund over the
six-month period. Our holdings in these areas reaped the benefits of an
improving market environment and the issuance of favorable earnings reports
during the period. Specifically, International Business Machines and Cisco
Systems performed admirably for the fund. Additionally, our exposure to select
diversified financial companies helped performance, as these names recovered
from the bad press plaguing the overall sector for much of the year.
Hurting portfolio performance the most was the fund's overweighting in the
pharmaceutical industries and consumer discretionary sectors, along with our
exposure to certain food and beverage names. Despite our focus on owning the
highest-quality names, reports of questionable accounting practices and lowered
earnings brought down our pharmaceutical holdings. In consumer discretionary,
declining consumer confidence and lowered sales forecasts from many retailers
hurt the overall group. Within our supermarket holdings, increasing competition
and declining profit outlooks hurt performance.
Given the current environment, we believe that there is reason to be optimistic
about the economy. The double-dip recession that many investors feared would
come to pass has thus far been averted, and confidence in the economy appears to
be building. Concerns over Iraq and North Korea still persist, but we believe
our focus on high-quality companies trading at a significant discount to their
intrinsic value will be well rewarded over the long term.
5
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Portfolio Review Citizens Global Equity Fund
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Goal:
Capital appreciation
Strategy:
Invests mainly in stocks and other equities of foreign and U.S. companies
Inception Dates:
Standard shares 02/08/94
Institutional shares 11/01/99
Administrative shares 02/04/00
FOOTNOTES
All index and fund performance figures assume reinvestment of dividends and
distributions. Index results do not include costs of investing, which would
lower performance. The index is unmanaged and you cannot invest in it directly.
Past performance is not an indication of future results. Returns reflect expense
reimbursements/waivers in effect, without which returns would have been lower.
When you sell your fund shares, they may be worth more or less than what you
paid for them.
Investments in the Citizens Global Equity Fund involve risks of investing in
foreign markets, including political instability and currency risks, excessive
taxation, different financial and auditing standards, increased market
volatility and other factors.
The Morgan Stanley Capital International (MSCI) World Index is a market
capitalization weighted equity index of over 1,500 stocks traded in 22 world
markets.
AVERAGE ANNUAL RETURNS
(AS OF 12/31/02) Ticker 6 1 5 Since
Symbol Months Year Years Inception
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Standard shares WAGEX -10.27% -21.43% 0.70% 5.09%
MSCI World Index -- -12.14% -19.89% -2.11% 4.16%
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Institutional shares CGEIX -9.93% -20.96% -- -13.98%
Administrative shares CEADX -10.07% -21.25% -- -25.95%
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The final half of 2002 began with gloom and nervousness in worldwide equity
markets, only to snap back from oversold levels in October and November.
Unfortunately, geopolitical tensions hampered the fourth quarter rally as
markets reversed themselves going into December. A surprisingly large interest
rate cut by a rather patient Federal Reserve, which lowered the Fed funds rate
to 1.25%, was a primary thrust for worldwide markets during the fourth quarter.
Within this environment, our approach was to remain broadly diversified across
the sectors and position the portfolio for an economic recovery. We became
increasingly concerned that consumer spending would slow as unemployment figures
rose and people became more concerned about economic weakness during the third
quarter. As such, we trimmed or sold those holdings that were dependent on a
strong consumer market and looked for companies with above-average earnings
growth through superior products, broad distribution, or patent-protected
technologies.
Relative to the MSCI World Index, the only sector with positive returns for the
fund during the report period was the utilities sector. Other sectors which were
down slightly, but did not substantially hamper performance, included health
care, technology and telecommunications. These sectors, which had experienced
extreme underperformance in the third quarter, rallied in the final few months
of the year as investors' appetite for risk grew noticeably. Within technology
and telecommunications, Vodafone Group plc, SBC Communications Inc., and Alltel
Corporation all rebounded from the intense selling they experienced in the first
three quarters of 2002.
The weakest sectors for the fund in the second half of 2002 were financial
services, consumer discretionary and staples, and industrials. These were the
sectors that had enjoyed relatively strong performance in the first half of the
year. Nevertheless, these areas sold off primarily because investors believed
that valuations were not compelling and the risk/reward metrics for technology
and telecommunications were more attractive.
We believe that a recovery is underway worldwide. In the U.S., this recovery is
more subdued than those of years past in part because the consumer never stopped
spending through the downturn. However, we note that companies have spent many
months cleaning up their balance sheets and many now have a good deal of cash.
It is our belief that while companies may use their funds to make acquisitions
or to repurchase their own shares, a healthy percentage will go toward capital
expenditures. This should help to propel the economy forward. We would make
similar observations on the international markets, albeit valuations look
cheaper than those of their U.S. counterparts. These more compelling values,
coupled with the prospect of further monetary easing by the European Central
Bank, lead us to adopt a somewhat more positive attitude. This is compounded by
our view that a number of high-quality global companies have suffered
disproportionately from the sell-off and have the potential to bounce back to a
greater extent. Therefore, we are optimistic that 2003 will be a year in which a
careful stock-specific focus will finally reward the equity investor.
6
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Portfolio Review Citizens International Growth Fund
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Goal:
Capital appreciation
Strategy:
Invests mainly in stocks and other equities of foreign companies
Inception Date:
Standard shares 12/20/00
FOOTNOTES
All index and fund performance figures assume reinvestment of dividends and
distributions. Index results do not include costs of investing, which would
lower performance. The index is unmanaged and you cannot invest in it directly.
Past performance is not an indication of future results. Returns reflect expense
reimbursements/waivers in effect, without which returns would have been lower.
When you sell your fund shares, they may be worth more or less than what you
paid for them.
Investments in the Citizens International Growth Fund involve risks of investing
in foreign markets, including political instability and currency risks,
excessive taxation, different financial and auditing standards, increased market
volatility and other factors.
The MSCI EAFE Index is an unmanaged index of foreign stocks and is an aggregate
of 21 individual country indices that collectively represent many of the major
markets of the world.
AVERAGE ANNUAL RETURNS
(AS OF 12/31/02) 6 1 Since
Months Year Inception
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Standard shares -12.78% -19.81% -23.08%
MSCI EAFE Index -14.55% -15.94% -17.79%
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Having plunged during the third quarter, international equity markets regained
their composure and rebounded sharply upwards in October and November. In
December, these markets again capitulated in tired trading and thin volume to
end the year down. The wild fluctuations registered over the six-month period
did little to diminish investors'intent on exiting equity markets to move into
cash and bonds. Continued jawboning by the U.S. over a potential attack on Iraq,
and a mixed bag of economic data combined to depress already negative market
psychology even further.
Relative to the MSCI EAFE Index, our underweighting in industrials and utilities
benefited performance. Additionally, despite the fund's overweight in technology
and telecommunications, relatively good stock selection was able to mitigate
what otherwise would have been a negative allocation. Indeed, within both of
these sectors, many of the stocks that were hardest hit during the summer were
the greatest beneficiaries of the two-month rally. Holdings such as Flextronics
International Ltd., Nokia Corporation, and Vodafone Group plc all performed
admirably for the fund. Additionally, our decision to trim back some of our
larger positions in these areas going into year-end also helped to avoid further
losses.
Financial stocks experienced a particularly volatile time over the six-month
period ended December 31, 2002, especially in the third quarter due in part to
the precipitous declines in the insurance industry. Allianz AG's disappointing
quarterly earnings announcement began the sell-off in the industry, which
affected our other insurance holdings, including AXA and ING Groep N.V. Despite
rallying sharply in November, these stocks were the main detractors from
performance during the six-month period.
Looking forward, our view for 2003 remains positive. Based on various measures,
international markets look less expensive than their U.S. counterparts, and as
we saw in the fourth quarter, earnings expectations are at such a low level that
we believe significant upside potential from current levels is probable. More
specifically, once consumer confidence stabilizes, we believe investors will
favor companies with the higher-quality, socially responsible characteristics
that we own.
7
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Portfolio Review Citizens Income Fund
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Goal:
Current income and monthly dividend payment
Strategy:
Invests mainly in bonds and mortgage-backed securities
Inception Date:
Standard shares 06/10/92
FOOTNOTES
All index and fund performance figures assume reinvestment of dividends and
distributions. Index results do not include costs of investing, which would
lower performance. The index is unmanaged and you cannot invest in it directly.
Past performance is not an indication of future results. Returns reflect expense
reimbursements/waivers in effect, without which returns would have been lower.
When you sell your fund shares, they may be worth more or less than what you
paid for them.
The Lehman Brothers U.S. Aggregate Index is an unmanaged index of taxable,
investment-grade fixed-income securities, including government, corporate,
mortgage and asset-backed securities.
AVERAGE ANNUAL RETURNS
(AS OF 12/31/02) Ticker 6 1 5 10
Symbol Months Year Years Years
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Standard shares WAIMX 5.31% 3.51% 3.98% 5.82%
Lehman Brothers
U.S. Aggregate Index -- 6.23% 10.25% 7.54% 7.51%
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The third quarter of 2002 was characterized by the Federal Reserve's (Fed)
reluctance to lower rates, gloomy economic and corporate forecasts, and the
increasing possibility of war with Iraq. Economic growth showed improvement in
the fourth quarter due to a number of factors. These included a strong third
quarter Gross Domestic Product number, declining jobless claims, rising durable
goods orders, and stronger than expected new and existing home sales. In
November, the Fed cut interest rates by 50 basis points, signaling it remained
cautious about the state of the economy.
Within this environment, the fund's strategy was to be diversified and invested
mainly in higher-quality, socially responsible, investment-grade names with
attractive yields during the six-month period ended December 31, 2002. Targeting
the intermediate part of the yield curve -- the 4 to 10-year area -- the fund's
performance benefited from being invested in government agency mortgage-backed
securities, and securities in the cable and financial services sectors. Low
interest rates on long-term fixed-rate mortgages continued to fuel the
refinancing wave in 2002 and ultimately benefited our exposure to Government
National Mortgage Association (GNMA) mortgage-backed securities and Fannie Mae
and Freddie Mac agency issues. In cable and financial services, fund holdings
such as Comcast Corporation and J.P. Morgan Chase and Company benefited from
improving fundamentals, decreasing headline risk from earlier in the year, and
investor enthusiasm.
Our underweight in the telecommunications and media sectors hurt the fund's
performance during the six-month period ended December 31, 2002. This was
especially true in the fourth quarter as investors became more willing to buy
speculative names regardless of credit quality and solid cash flows.
While market conditions have improved recently, there are still many concerns
over potential terrorist attacks and a war with Iraq. In light of these
concerns, we believe that improving corporate profits and steady consumer
spending will lead to moderate U.S. economic growth in 2003. In addition, the
Fed appears to be in a holding pattern for the near future. Within this
environment, our main focus will remain on socially responsible,
investment-grade issues in the intermediate part of the yield curve that we
believe should tend to outperform.
8
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Portfolio Review Citizens Money Market Fund
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Goal:
Current income consistent with safety and liquidity
Strategy:
Invests exclusively in money market instruments
Inception Dates:
Standard shares 08/30/83 Institutional shares 02/01/96
FOOTNOTES
(1) Since inception return from 01/01/91. Complete data for periods prior to
1991 is not available.
All fund performance figures assume reinvestment of dividends and
distributions. Past performance is not an indication of future results.
Returns reflect expense reimbursements/ waivers in effect, without which
returns would have been lower. When you sell your fund shares, they may be
worth more or less than what you paid for them.
Investments in the Citizens Money Market Fund are not insured or
guaranteed by the FDIC or any other government agency. Although the fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the fund.
AVERAGE ANNUAL RETURNS
(AS OF 12/31/02) 7-Day
Ticker Simple 6 1 5 10 Since
Symbol Yield Months Year Years Years Inception
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Standard shares WKAXX 0.54% 0.42% 0.95% 3.66% 3.75% 3.84%(1)
Institutional shares WAIXX 0.90% 0.59% 1.26% 4.04% -- 4.32%
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In the third quarter, the Federal Reserve (Fed) decided to leave the Fed funds
rate unchanged at 1.75% despite persistent stock market weakness and declining
consumer and business spending. In the fourth quarter, an equity market rally
was fueled by encouraging economic news and the Fed's surprising 50 basis point
interest rate cut. The Fed's aggressive rate-cutting strategy, which began in
January 2001, has dramatically affected the yields of money market funds over
the past two years.
While credit woes continued to affect money markets, the fund's strategy during
the six-month period ended December 31, 2002 focused on investing in
high-quality, socially responsible securities. Initially, the portfolio was
positioned to gain more yield by going out farther on the yield curve. Early in
the fourth quarter we positioned the portfolio for a possible interest rate
reduction by the Fed by increasing the fund's weighted average maturity and
avoiding securities with credit and headline risk. The Fed's 50 basis point cut
was deeper than expected -- and surprised the market. While we were positioned
to benefit from a rate cut, the fund's weighted average maturity was, on
average, shorter than its peer group. This caused the fund's performance to lag
its peers. As of December 31, 2002, the weighted average maturity of the fund
was 46 days.
While the mood of the markets has improved recently, much concern remains over
potential terrorist attacks and a war with Iraq. In light of that, we believe
that improving corporate profits and steady consumer spending will be some of
the key factors influencing the U.S. economy to modestly grow in 2003. In
addition, the Fed appears to be in a holding pattern for the near future. Within
this environment, we will remain cautious as we look for shorter maturity
opportunities to pick up yield and lower the fund's weighted average maturity to
reflect the current neutral environment.
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Portfolio Review Additional Funds
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Portfolio reviews for the Citizens Balanced Fund (inception: 12/20/02) and the
Citizens Ultra Short Bond Fund (inception: 11/21/02) are not available in this
report. Portfolio holdings and financial information for these funds are
included in subsequent sections.
9
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Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
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Citizens Core Growth Fund
Security Shares Value ($)
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COMMON STOCKS - 97.3%
Air Freight - 1.7%
FedEx Corp. 106,060 5,751
Banks - 3.2%
Bank of America Corp. 160,000 11,131
Biotechnology - 4.9%
Amgen, Inc.a 103,150 4,986
Cephalon, Inc.a 105,000 5,111
Forest Laboratories, Inc.a 19,000 1,866
Gilead Sciences, Inc.a 71,000 2,414
IDEC Pharmaceuticals Corp.a 73,000 2,421
------
16,798
Chemicals - 1.0%
Air Products & Chemicals, Inc. 81,000 3,463
Computers - 11.3%
Dell Computer Corp.a 302,100 8,078
Hewlett-Packard Co. 94,000 1,632
Intel Corp. 246,200 3,833
International Business
Machines Corp. 56,000 4,340
Microsoft Corp.a 325,800 16,844
Symantec Corp.a 106,700 4,322
------
39,049
Electronics - 4.2%
Analog Devices, Inc.a 131,000 3,127
Cisco Systems, Inc.a 451,900 5,920
Flextronics Internationala 289,000 2,367
Maxim Integrated Products, Inc. 95,000 3,139
------
14,553
Energy & Utilities - 8.0%
Anadarko Petroleum Corp. 78,000 3,736
Baker Hughes, Inc. 118,000 3,798
BJ Services Co.a 163,000 5,267
Burlington Resources, Inc. 44,200 1,885
ConocoPhillips 54,000 2,613
Devon Energy Corp. 79,000 3,626
EOG Resources, Inc. 169,000 6,746
Vulcan Power Co., Class Aa c 40,000 0
------
27,671
Entertainment - 2.3%
Viacom, Inc.a 190,424 7,762
Financial - Diversified - 10.8%
Citigroup, Inc. 457,700 16,105
Fannie Mae 44,700 2,876
FleetBoston Financial Corp. 185,000 4,496
Freddie Mac 43,000 2,539
J.P. Morgan Chase & Co. 255,000 6,120
Wells Fargo & Co. 106,000 4,968
------
37,104
Foods - 2.1%
PepsiCo, Inc. 167,500 7,072
Health Care - 15.9%
AmerisourceBergen Corp. 37,000 2,009
Eli Lilly & Co. 109,900 6,979
Guidant Corp.a 88,000 2,715
HCA, Inc. 85,000 3,528
Johnson & Johnson, Inc. 170,948 9,181
Medtronic, Inc. 118,338 5,396
Merck & Co., Inc. 95,000 5,378
Pfizer, Inc. 479,200 14,648
St. Jude Medical, Inc.a 56,997 2,264
UnitedHealth Group, Inc. 33,000 2,756
------
54,854
Insurance - 6.5%
ACE Ltd. 119,000 3,491
American International Group, Inc. 251,934 14,575
Willis Group Holdings Ltd.a 93,000 2,666
XL Capital Ltd. 22,000 1,700
------
22,432
Investment Banking
& Brokerage - 1.9%
Lehman Brothers Holdings, Inc. 120,000 6,395
Manufacturing - 6.3%
3M Co. 70,300 8,668
American Standard Cos., Inc.a 26,900 1,914
Eaton Corp. 65,000 5,077
Illinois Tool Works, Inc. 95,000 6,162
------
21,821
Personal Care - 2.6%
Avon Products, Inc. 66,300 3,572
Gillette Co. 172,000 5,222
------
8,794
Publishing - 2.3%
Gannett Co., Inc. 59,800 4,294
The Washington Post Co. 5,000 3,690
------
7,984
10 See Financial Notes
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Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
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Citizens Core Growth Fund (cont'd)
Security Shares Value ($)
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Retail - 4.5%
Costco Wholesale Corp.a 131,400 3,687
Kohl's Corp.a 56,700 3,172
Lowe's Cos., Inc. 107,400 4,028
Target Corp. 150,000 4,500
---------
15,387
Services - 2.0%
Concord EFS, Inc.a 262,000 4,124
Fiserv, Inc.a 82,000 2,784
---------
6,908
Telecommunications - 5.8%
BellSouth Corp. 135,000 3,492
Nokia Corp. (ADR) 49,000 760
QUALCOMM, Inc.a 54,000 1,965
SBC Communications, Inc. 226,264 6,134
Verizon Communications, Inc. 197,900 7,669
---------
20,020
---------
Total Common Stocks 334,949
Cost: $309,952
Security
Rate, Maturity Date Principal ($) Value ($)
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REPURCHASE AGREEMENTS - 3.0%
Fifth Third Bank, Inc.,
0.75%, 01/02/03
(collateralized by Fifth Third Bank
Mortgage Loan Trust security) 10,245 10,245
Cost: $10,245 ---------
Total Investments - 100.3% 345,194
Cost: $320,197(b)
Percentages indicated are based on net assets of $344,110.
a Non-income producing security.
b Aggregate cost for federal income tax purposes is substantially the same.
c Restricted security constituting 0.00% of net assets which may not be
publicly sold without registration under the Securities Act of 1933. This
security is valued at its fair value as determined in good faith under
procedures consistently applied under the general supervision of the Board
of Trustees. Additional information on the security is as follows:
Acquisition Date: March 3, 1995
Cost: $300
Value: $0
ADR - American Depositary Receipt
Citizens Emerging Growth Fund
Security Shares Value ($)
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COMMON STOCKS - 98.9%
Apparel Manufacturers - 2.2%
Columbia Sportswear Co.a 80,300 3,567
Biotechnology - 16.9%
Allergan, Inc. 73,400 4,229
Cephalon, Inc.a 114,015 5,549
Gilead Sciences, Inc.a 184,900 6,287
IDEC Pharmaceuticals Corp.a 155,700 5,165
MedImmune, Inc.a 32,500 883
Millenium Pharmaceuticals, Inc.a 178,765 1,419
Neurocrine Biosciences, Inc.a 70,400 3,214
-------
26,746
Chemicals - 2.1%
Air Products & Chemicals, Inc. 76,500 3,270
Computers - 12.4%
BEA Systems, Inc.a 307,000 3,521
Emulex Corp.a 83,900 1,556
Intuit, Inc.a 35,700 1,675
Lexmark International, Inc.a 54,900 3,321
Mercury Interactive Corp.a 54,200 1,607
NetworkAssociates, Inc.a 259,200 4,172
Symantec Corp.a 96,400 3,905
-------
19,757
Electrical Equipment - 2.3%
Fairchild Semiconductor Corp.a 335,330 3,591
Electronics - 10.0%
Analog Devices, Inc.a 92,890 2,217
Flextronics Internationala 357,600 2,929
International Rectifier Corp.a 205,300 3,789
Jabil Circuit, Inc.a 132,200 2,369
Maxim Integrated Products, Inc. 68,000 2,247
Microchip Technology, Inc. 95,200 2,328
-------
15,879
Energy & Utilities - 8.0%
BJ Services Co.a 24,200 782
Devon Energy Corp. 51,400 2,359
Noble Energy, Inc. 90,500 3,399
Ocean Energy, Inc. 95,200 1,901
Smith International, Inc.a 48,388 1,578
Weatherford International Ltd.a 65,400 2,611
-------
12,630
11
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Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
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Citizens Emerging Growth Fund (cont'd)
Security Shares Value ($)
- --------------------------------------------------------------------------------
Health Care - 13.6%
AmerisourceBergen Corp. 74,960 4,070
Cytyc Corp.a 262,500 2,678
Express Scripts, Inc.a 34,600 1,662
Guidant Corp.a 53,800 1,660
St. Jude Medical, Inc.a 47,100 1,871
Triad Hospitals, Inc.a 135,162 4,032
Trimeris, Inc.a 92,000 3,964
WellPoint Health Networks, Inc.a 23,900 1,701
--------
21,638
Insurance - 6.6%
Platinum Underwriters Holdings Ltd.a 144,100 3,798
W.R. Berkley Corp. 86,727 3,435
Willis Group Holdings Ltd.a 114,100 3,271
--------
10,504
Investment Banking & Brokerage - 3.0%
Affiliated Managers Group, Inc.a 94,400 4,748
Leisure - 1.0%
Harley-Davidson, Inc. 33,000 1,525
Manufacturing - 2.1%
American Standard Cos., Inc.a 47,700 3,393
Multimedia - 2.0%
Belo Corp., Class A 76,300 1,627
Cox Radio, Inc.a 73,000 1,665
--------
3,292
Publishing - 2.2%
The Washington Post Co. 4,790 3,535
Restaurants - 1.0%
Starbucks Corp.a 76,800 1,565
Retail - 1.6%
Foot Locker, Inc.a 235,400 2,472
Services - 10.1%
ARAMARK Corp.a 73,000 1,716
Concord EFS, Inc.a 268,100 4,220
Dun & Bradstreet Corp.a 144,070 4,969
Fiserv, Inc.a 149,600 5,079
--------
15,984
Telecommunications - 1.8%
Nextel Communications, Inc.a 251,100 2,900
--------
Total Common Stocks 156,996
Cost: $162,003
Security
Rate, Maturity Date Principal ($) Value ($)
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REPURCHASE AGREEMENTS - 1.7%
Fifth Third Bank, Inc.,
0.75%, 01/02/03
(collateralized by Federal Home Loan
Mortgage Corporation security) 2,746 2,746
Cost: $2,746 --------
Total Investments - 100.6% 159,742
Cost: $164,749b
Percentages indicated are based on net assets of $158,822.
a Non-income producing security.
b Aggregate cost for federal income tax purposes is substantially the same.
Citizens Small Cap Core Growth Fund
Security Shares Value ($)
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COMMON STOCKS - 96.7%
Apparel Manufacturers - 2.0%
Columbia Sportswear Co.a 6,600 293
Banks - 4.1%
East West Bancorp, Inc. 8,830 319
UCBH Holdings, Inc. 7,090 301
------
620
Biotechnology - 12.0%
Cephalon, Inc.a 11,960 582
EXACT Sciences Corp.a 12,000 130
Integra LifeSciences Holdings Corp.a 21,670 382
Neurocrine Biosciences, Inc.a 6,600 301
XOMA Ltd.a 99,670 422
------
1,817
Broadcasting - 2.5%
Entravision Communications Corp.,
Class Aa 37,310 372
Computers - 10.3%
BEA Systems, Inc.a 29,200 335
Borland Software Corp.a 12,100 149
Emulex Corp.a 8,300 154
Internet Security Systems, Inc.a 15,500 284
Mercury Interactive Corp.a 5,000 148
Network Associates, Inc.a 24,700 398
Quest Software, Inc.a 7,200 74
------
1,542
12 See Financial Notes
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Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens Small Cap Core Growth Fund (cont'd)
Security Shares Value ($)
- --------------------------------------------------------------------------------
Electrical Equipment - 2.3%
Fairchild Semiconductor Corp.a 31,870 341
Electronics - 11.6%
Cabot Microelectronics Corp.a 4,500 212
Cree, Inc.a 8,200 134
Daktronics, Inc.a 12,800 171
Flextronics Internationala 34,000 278
International Rectifier Corp.a 19,500 361
Jabil Circuit, Inc.a 12,600 226
LSI Logic Corp.a 40,000 231
OmniVision Technologies, Inc.a 9,300 126
-------
1,739
Energy & Utilities - 6.4%
Newfield Exploration Co.a 10,550 380
Precision Drilling Corp.a 4,800 156
Western Gas Resources, Inc. 11,330 418
-------
954
Health Care - 14.5%
AdvancePCS, Inc.a 13,570 301
Cytyc Corp.a 55,100 563
SICOR, Inc.a 19,070 302
Thoratec Corp.a 56,900 435
Triad Hospitals, Inc.a 10,100 301
Trimeris, Inc.a 6,700 289
-------
2,191
Insurance - 5.2%
Platinum Underwriters Ltd.a 15,600 411
W.R. Berkley Corp. 9,183 364
-------
775
Investment Banking & Brokerage - 2.2%
Affiliated Managers Group, Inc.a 6,500 327
Manufacturing - 7.2%
A.O. Smith Corp. 22,400 605
The Manitowoc Co., Inc. 18,800 479
-------
1,084
Media - 2.1%
Belo Corp., Class A 7,200 154
Cox Radio, Inc.a 6,800 155
-------
309
Retail - 5.9%
Foot Locker, Inc.a 21,900 230
The J. Jill Group, Inc.a 11,900 166
Linens 'n Things, Inc.a 21,900 495
-------
891
Services - 2.5%
Fair Isaac & Co., Inc. 8,700 371
Transportation - 3.8%
Roadway Corp. 15,400 567
Waste Management - 2.1%
Waste Connections, Inc.a 8,090 312
-------
Total Common Stocks 14,505
Cost: $14,722
Security
Rate, Maturity Date Principal ($) Value ($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 2.2%
Fifth Third Bank, Inc.,
0.75%, 01/02/03
(collateralized by Federal National
Mortgage Association security) 337 337
Cost: $337 -------
Total Investments - 98.9% 14,842
Cost: $15,059b
Percentages indicated are based on net assets of $15,007.
a Non-income producing security.
b Aggregate cost for federal income tax purposes is substantially the same.
Citizens Value Fund
Security Shares Value ($)
- --------------------------------------------------------------------------------
COMMON STOCKS - 95.8%
Air Freight - 1.2%
FedEx Corp. 3,500 190
Banks - 1.8%
Bank of America Corp. 3,900 271
Computers - 11.5%
Hewlett-Packard Co. 19,900 345
Intel Corp. 18,700 291
International Business Machines Corp. 5,700 442
Microsoft Corp.a 13,500 698
-------
1,776
Consumer Finance - 1.2%
Capital One Financial Corp. 6,400 190
Electronics - 2.3%
Cisco Systems, Inc.a 27,200 356
Energy & Utilities - 2.0%
EOG Resources, Inc. 7,800 311
13
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Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens Value Fund (cont'd)
Security Shares Value ($)
- --------------------------------------------------------------------------------
Financial - Diversified - 20.7%
The Bear Stearns Cos., Inc. 9,200 546
CIT Group, Inc. 19,500 382
Citigroup, Inc. 17,200 605
FleetBoston Financial Corp. 27,900 679
J.P. Morgan Chase & Co. 26,500 637
Nationwide Financial Services, Inc.,
Class A 6,300 180
Wells Fargo & Co. 3,900 183
-------
3,212
Foods - 1.2%
PepsiCo, Inc. 4,400 186
Health Care - 14.0%
AmerisourceBergen Corp. 6,700 364
Eli Lilly & Co. 5,700 362
HCA, Inc. 10,055 417
Merck & Co., Inc. 5,027 285
Pfizer, Inc. 24,600 752
-------
2,180
Insurance - 5.9%
American International Group, Inc. 6,000 347
Anthem, Inc.a 6,100 384
Lincoln National Corp. 5,600 177
-------
908
Investment Banking & Brokerage - 3.3%
The Goldman Sachs Group, Inc. 7,400 504
Manufacturing - 1.2%
3M Co. 1,500 185
Pharmaceuticals - 2.4%
Watson Pharmaceuticals, Inc.a 13,100 370
Publishing - 1.3%
Gannett Co., Inc. 2,700 194
Retail - 11.5%
Duane Reade, Inc.a 14,000 238
The Gap, Inc. 43,600 676
Home Depot, Inc. 15,100 362
Target Corp. 16,800 504
-------
1,780
Services - 2.4%
Concord EFS, Inc.a 11,400 179
Fiserv, Inc.a 5,500 187
-------
366
Telecommunications - 11.9%
AT&T Wireless Services, Inc.a 60,136 340
BellSouth Corp. 15,100 391
QUALCOMM, Inc.a 9,500 346
SBC Communications, Inc. 14,300 388
Verizon Communications, Inc. 10,100 390
-------
1,855
-------
Total Common Stocks 14,834
Cost: $16,155
Security
Rate, Maturity Date Principal ($) Value ($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 4.7%
Fifth Third Bank, Inc.,
0.75%, 01/02/03
(collateralized by Fifth Third
Mortgage Loan Trust security) 725 725
Cost: $725 -------
Total Investments - 100.5% 15,559
Cost: $16,880b
Percentages indicated are based on net assets of $15,478.
a Non-income producing security.
b Aggregate cost for federal income tax purposes is substantially the same.
Citizens Balanced Fund
Security Shares Value ($)(a)
- --------------------------------------------------------------------------------
COMMON STOCKS - 49.2%
Air Freight - 0.9%
FedEx Corp. 20 1,084
Banks - 1.7%
Bank of America Corp. 30 2,087
Biotechnology - 2.4%
Amgen, Inc.b 19 919
Cephalon, Inc.b 17 827
Forest Laboratories, Inc.b 4 393
Gilead Sciences, Inc.b 13 442
IDEC Pharmaceuticals Corp.b 14 464
-------
3,045
Chemicals - 0.4%
Air Products & Chemicals, Inc. 11 470
Computers - 5.8%
Dell Computer Corp.b 56 1,497
Hewlett-Packard Co. 17 295
Intel Corp. 46 716
14 See Financial Notes
- --------------------------------------------------------------------------------
Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens Balanced Fund (cont'd)
Security Shares Value($)(a)
- --------------------------------------------------------------------------------
International Business Machines Corp. 10 775
Microsoft Corp.b 60 3,103
Symantec Corp.b 20 810
--------
7,196
Electronics - 2.2%
Analog Devices, Inc.b 24 573
Cisco Systems, Inc.b 84 1,100
Flextronics Internationalb 53 434
Maxim Integrated Products, Inc. 18 595
--------
2,702
Energy & Utilities - 4.0%
Anadarko Petroleum Corp. 14 671
Baker Hughes, Inc. 22 708
BJ Services Co.b 30 969
Burlington Resources, Inc. 8 341
ConocoPhillips 7 339
Devon Energy Corp. 15 689
EOG Resources, Inc. 31 1,237
--------
4,954
Entertainment - 1.0%
Viacom, Inc.b 32 1,304
Financial - Diversified - 5.5%
Citigroup, Inc. 85 2,992
Fannie Mae 8 515
FleetBoston Financial Corp. 34 826
Freddie Mac 8 472
J.P. Morgan Chase & Co. 47 1,128
Wells Fargo & Co. 20 937
--------
6,870
Foods - 1.1%
PepsiCo, Inc. 31 1,309
Health Care - 8.1%
AmerisourceBergen Corp. 7 380
Eli Lilly & Co. 20 1,270
Guidant Corp.b 16 494
HCA, Inc. 16 664
Johnson & Johnson, Inc. 32 1,719
Medtronic, Inc. 22 1,003
Merck & Co., Inc. 18 1,019
Pfizer, Inc. 88 2,691
St. Jude Medical, Inc.b 11 437
UnitedHealth Group, Inc. 6 501
--------
10,178
Insurance - 3.0%
ACE Ltd. 16 469
American International Group, Inc. 47 2,719
Willis Group Holdings Ltd.b 12 344
XL Capital Ltd. 3 232
--------
3,764
Investment Banking & Brokerage - 0.9%
Lehman Brothers Holdings, Inc. 22 1,172
Manufacturing - 3.3%
3M Co. 13 1,603
American Standard Cos., Inc.b 5 356
Eaton Corp. 12 937
Illinois Tool Works, Inc. 18 1,167
--------
4,063
Personal Care - 1.3%
Avon Products, Inc. 12 646
Gillette Co. 32 972
--------
1,618
Publishing - 1.3%
Gannett Co., Inc. 11 790
The Washington Post Co. 1 738
--------
1,528
Retail - 2.3%
Costco Wholesale Corp.b 24 673
Kohl's Corp.b 10 560
Lowe's Cos., Inc. 20 750
Target Corp. 28 840
--------
2,823
Services - 1.0%
Concord EFS, Inc.b 48 756
Fiserv, Inc.b 15 509
--------
1,265
Telecommunications - 3.0%
BellSouth Corp. 25 647
Nokia Corp. (ADR) 9 140
QUALCOMM, Inc.b 10 364
SBC Communications, Inc. 42 1,139
Verizon Communications, Inc. 37 1,433
--------
3,723
--------
Total Common Stocks 61,155
Cost $62,128
15
- --------------------------------------------------------------------------------
Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens Balanced Fund (cont'd)
Security
Rate, Maturity Date Principal($)(a) Value($)(a)
U.S. GOVERNMENT AGENCY OBLIGATIONS - 21.3%
Federal National Mortgage Association - 17.1%
1.88%, 12/15/04 6,000 6,013
5.25%, 01/15/09 14,000 15,317
--------
21,330
Federal Farm Credit Bank - 4.2%
5.10%, 11/24/03 5,000 5,171
--------
Total U.S. Government Agency Obligations 26,501
Cost $ 26,241
U.S. TREASURY NOTES - 8.1%
3.00%, 11/15/07 5,000 5,060
4.00%, 11/15/12 5,000 5,071
--------
Cost $10,040 10,131
Total Investments - 78.6% 97,787
Cost $98,409c
Percentages indicated are based on net assets of $124,389.
a Actual principal and value.
b Non-income producing security.
c Aggregate cost for federal income tax purposes is substantially the same.
Citizens Global Equity Fund
Security Shares Value ($)
- --------------------------------------------------------------------------------
COMMON STOCKS - 97.7%
Apparel Manufacturers - 0.7%
Gucci Group NV 9,496 871
Automobile Manufacturing - 3.2%
Honda Motor Co. Ltd. 60,400 2,234
Volkswagen AG 42,000 1,521
--------
3,755
Banks - 3.7%
Northern Trust Corp. 51,900 1,819
Royal Bank of Scotland Group plc 108,709 2,604
--------
4,423
Biotechnology - 3.8%
Amgen, Inc.a 17,000 822
Applied Biosystems Group 76,000 1,333
Celltech Group plca 200,072 1,111
Invitrogen Corp.a 40,600 1,270
--------
4,536
Broadcasting - 0.7%
Univision Communications, Inc.a 35,800 877
Chemicals - 1.2%
Shin-Etsu Chemical Co. 45,400 1,488
Communications Equipment - 1.1%
Cisco Systems, Inc.a 81,000 1,062
Ericsson AB, B sharesa 379,200 265
--------
1,327
Computers - 8.0%
Automatic Data Processing, Inc. 48,900 1,919
Dell Computer Corp.a 50,300 1,345
Intel Corp. 70,000 1,090
International Business Machines Corp. 25,000 1,938
Microsoft Corp.a 62,500 3,231
--------
9,523
Construction - 1.2%
Grupo Dragados SA 82,649 1,405
Diversified Manufacturing - 4.0%
3M Co. 15,000 1,850
Gentex Corp.a 29,000 918
Illinois Tool Works, Inc. 31,000 2,010
--------
4,778
Electrical Equipment - 3.8%
Analog Devices, Inc.a 30,000 716
Applied Materials, Inc.a 45,000 586
ASML Holding NVa 67,626 565
Emerson Electric Co. 38,300 1,948
Flextronics Internationala 81,600 668
--------
4,483
Electronics - 2.1%
Sony Corp. 60,800 2,541
Energy & Utilities - 10.6%
Anadarko Petroleum Corp. 50,000 2,395
Encana Corp. 81,843 2,527
EOG Resources, Inc. 65,000 2,596
Noble Corp.a 50,000 1,758
Precision Drilling Corp.a 31,730 1,023
Scottish Power plc 308,672 1,801
Vestas Wind SystemsA/S 50,450 502
--------
12,602
16 See Financial Notes
- --------------------------------------------------------------------------------
Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens Global Equity Fund (cont'd)
Security Shares Value ($)
- --------------------------------------------------------------------------------
Financial Services - 1.0%
American Express Co. 35,000 1,237
Financial - Diversified - 8.6%
Citigroup, Inc. 57,400 2,020
HSBC Holdings plc 187,883 2,077
Lloyds TSB Group plc 232,356 1,668
Mitsubishi Tokyo Financial Group, Inc. 184 1,000
UBS AGa 41,300 2,007
Wells Fargo & Co. 32,000 1,500
--------
10,272
Food & Beverages - 2.4%
The Coca-Cola Co. 35,200 1,542
PepsiCo, Inc. 30,000 1,267
--------
2,809
Health & Beauty Aids - 1.5%
L'Oreal SA 23,191 1,766
Health Care - 11.8%
AstraZeneca plc 40,719 1,455
GlaxoSmithKline plc 170,140 3,265
HCA, Inc. 34,000 1,411
Johnson & Johnson, Inc. 22,000 1,182
Medtronic, Inc. 40,000 1,824
Merck & Co., Inc. 20,200 1,144
Pfizer, Inc. 58,400 1,785
Sanofi-Synthelabo SA 32,285 1,974
--------
14,040
Insurance - 6.8%
Allianz AG 8,600 813
American International Group, Inc. 35,000 2,025
AXA 89,926 1,207
ING Groep NV 80,000 1,355
Marsh & McLennan Cos., Inc. 58,200 2,689
--------
8,089
Office Equipment & Supplies - 3.8%
Avery Dennison Corp. 29,600 1,808
Canon, Inc. 71,000 2,674
--------
4,482
Personal Care - 2.3%
Gillette Co. 51,000 1,548
Kimberly-Clark Corp. 25,000 1,187
--------
2,735
Railroads - 1.0%
Norfolk Southern Corp. 60,000 1,199
Retail - 3.5%
Carrefour SA 35,794 1,594
Target Corp. 59,400 1,782
The TJX Cos., Inc. 40,000 781
--------
4,157
Services - 2.9%
Ecolab, Inc. 25,000 1,238
Sysco Corp. 32,200 959
WPP Group plc 169,128 1,292
--------
3,489
Telecommunications - 8.0%
Alltel Corp. 21,300 1,086
Nippon Telegraph & Telephone Corp. 350 1,271
Nokia Oyj 76,500 1,216
NTT DoCoMo, Inc. 738 1,362
SBC Communications, Inc. 60,700 1,646
Telefonica SAa 114,444 1,024
Vodafone Group plc 1,084,939 1,979
--------
9,584
--------
Total Common Stocks 116,468
Cost: $142,438
PREFERRED STOCKS - 1.0%
Automobile Manufacturing - 1.0%
Porsche AG 2,926 1,216
Cost: $838
Security
Rate, Maturity Date Principal ($) Value ($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 0.5%
Fifth Third Bank, Inc.,
0.75%, 01/02/03
(collateralized by Federal National
Mortgage Association security) 549 549
Cost: $549 --------
Total Investments - 99.2% 118,233
Cost: $143,825b
Percentages indicated are based on net assets of $119,137.
a Non-income producing security.
b Aggregate cost for federal income tax purposes is substantially the same.
17
- --------------------------------------------------------------------------------
Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens Global Equity Fund (cont'd)
- --------------------------------------------------------------------------------
At December 31, 2002, the fund's open short forward currency contracts were as
follows:
Contract
Delivery Amount
Currency Date (Local Currency)
- --------------------------------------------------------------------------------
Euro 01/03/03 (euro)(497,163)
Contract Current
Value Value Unrealized
(U.S. Dollar) (U.S. Dollar) Depreciation
- --------------------------------------------------------------------------------
$(510,587) $(521,649) $(11,062)
The fund's portfolio holdings as of December 31, 2002, were distributed among
the following countries:
Percentage of Net Assets
-----------------------------------
Short Term
Equity & Other Total
-----------------------------------
Canada 3.0% 3.0%
Denmark 0.4% 0.4%
Finland 1.0% 1.0%
France 5.5% 5.5%
Germany 3.0% 3.0%
Japan 10.6% 10.6%
Netherlands 2.3% 2.3%
Singapore 0.6% 0.6%
Spain 2.0% 2.0%
Sweden 0.2% 0.2%
Switzerland 1.7% 1.7%
United Kingdom 14.4% 14.4%
United States 54.0% 0.5% 54.5%
-----------------------------------
98.7% 0.5% 99.2%
Citizens International Growth Fund
Security Shares Value ($)
- --------------------------------------------------------------------------------
COMMON STOCKS - 98.5%
Apparel Manufacturers - 3.8%
Gucci Group NV 1,065 98
Automobile Manufacturing - 4.1%
Honda Motor Co. Ltd. 2,900 107
Banks - 4.0%
Royal Bank of Scotland Group plc 4,378 105
Biotechnology - 1.0%
Celltech Group plca 4,476 25
Communications Equipment - 0.4%
Ericsson AB, B sharesa 13,600 10
Construction - 4.8%
Grupo Dragados SA 7,348 125
Electrical Equipment - 3.5%
ASML Holding NVa 4,389 37
Celestica, Inc.a 2,414 34
Flextronics Internationala 2,600 21
-----
92
Electronics - 3.5%
Sony Corp. 2,200 92
Energy & Utilities - 14.0%
Encana Corp. 5,394 167
Precision Drilling Corp.a 1,215 39
Scottish Power plc 19,516 114
Vestas Wind Systems A/S 4,100 41
-----
361
Financial - Diversified - 13.4%
HSBC Holdings plc 7,096 78
Lloyds TSB Group plc 7,396 53
Mitsubishi Tokyo Financial Group, Inc. 13 71
National Australia Bank Ltd. 3,800 68
UBS AGa 1,590 77
-----
347
18 See Financial Notes
- --------------------------------------------------------------------------------
Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens International Growth Fund (cont'd)
Security Shares Value ($)
- --------------------------------------------------------------------------------
Food & Beverages - 2.0%
Nestle SA 245 52
Health & Beauty Aids - 4.2%
L'Oreal SA 1,434 109
Health Care - 9.7%
AstraZeneca plc 593 21
GlaxoSmithKline (ADR) 2,807 104
Novartis AG 645 24
Sanofi-Synthelabo SA 1,694 104
-----
253
Insurance - 6.2%
Allianz AG 400 38
AXA (ADR) 5,743 78
ING Groep NV 2,685 45
-----
161
Office Equipment & Supplies - 4.4%
Canon, Inc. (ADR) 3,096 114
Retail - 4.2%
Carrefour SA 2,453 109
Services - 3.9%
WPP Group plc 13,112 100
Telecommunications - 11.4%
Nippon Telegraph & Telephone Corp. 13 47
Nokia Oyj 2,600 41
NTT DoCoMo, Inc. 28 52
Telecom Italia SpA 7,100 36
Telefonica SA (ADR)a 1,040 28
Telefonica SAa 961 9
Vodafone Airtouch plc (ADR) 4,700 84
-----
297
-----
Total Common Stocks 2,557
Cost: $3,176
Security
Rate, Maturity Date Principal ($) Value ($)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 1.6%
Fifth Third Bank, Inc.,
0.75%, 01/02/03
(collateralized by Federal Home Loan
Mortgage Corporation security) 42 42
Cost: $42 -----
Total Investments - 100.1% 2,599
Cost: $3,218b
Percentages indicated are based on net assets of $2,597.
a Non-income producing security.
b Aggregate cost for federal income tax purposes is substantially the same.
ADR - American Depositary Receipt
The fund's portfolio holdings as of December 31, 2002, were distributed among
the following countries:
Percentage of Net Assets
----------------------------------
Short Term
Equity & Other Total
----------------------------------
Australia 2.6% 2.6%
Canada 9.2% 9.2%
Denmark 1.6% 1.6%
Finland 1.6% 1.6%
France 15.4% 15.4%
Germany 1.5% 1.5%
Italy 1.4% 1.4%
Japan 18.6% 18.6%
Netherlands 6.9% 6.9%
Singapore 0.8% 0.8%
Spain 6.2% 6.2%
Sweden 0.4% 0.4%
Switzerland 5.9% 5.9%
United Kingdom 26.4% 26.4%
United States 0.0% 1.6% 1.6%
----------------------------------
98.5% 1.6% 100.1%
19
- --------------------------------------------------------------------------------
Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens Income Fund
Security
Rate, Maturity Date Principal ($) Value ($)
- --------------------------------------------------------------------------------
CORPORATE BONDS - 65.1%
Airlines - 0.8%
Southwest Airlines Co.,
6.50%, 03/01/12 500 522
Banks - 5.3%
Bank of America Corp.,
3.90%, 01/15/08 1,500 1,522
FleetBoston Financial Corp.,
4.20%, 11/30/07 1,000 1,006
Sovereign Bancorp, Inc.,
10.50%, 11/15/06 1,000 1,112
--------
3,640
Broadcasting - 9.5%
Chancellor Media Corp.,
8.75%, 06/15/07 1,000 1,044
8.00%, 11/01/08 500 546
Comcast Corp.,
6.40%, 01/30/06 1,500 1,569
Cox Communications, Inc.,
6.75%, 03/15/11 1,000 1,076
7.10%, 10/01/12 1,000 1,111
Univison Communications, Inc.,
7.85%, 07/15/11 1,000 1,134
--------
6,480
Computers - 1.5%
International Business Machines Corp.,
4.25%, 09/15/09 1,000 1,021
Consumer Finance - 3.2%
American Express Co.,
5.50%, 09/12/06 2,000 2,160
Data Processing - Management - 1.6%
First Data Corp.,
5.60%, 11/01/11 1,000 1,058
Energy & Utilities - 2.2%
Ocean Energy, Inc.,
4.40%, 10/01/07 1,500 1,522
Financial - Diversified - 10.8%
American General Finance Corp.,
5.40%, 10/01/12 1,000 1,022
CIT Group, Inc.,
5.50%, 11/30/07 2,000 2,045
Citigroup, Inc.,
6.50%, 01/18/11 1,000 1,122
Countrywide Financial Corp.,
4.25%, 12/19/07 1,000 1,012
J.P. Morgan Chase & Co.,
5.25%, 05/30/07 1,000 1,057
SLM Corp.,
5.10%, 08/27/12 1,000 1,026
--------
7,284
Foods - 1.6%
PepsiAmericas, Inc.,
5.95%, 02/15/06 1,000 1,080
Health Care - 3.1%
AmerisourceBergen Corp.,
8.10%, 09/01/08 1,000 1,065
HCA, Inc.,
7.10%, 06/01/06 1,000 1,060
--------
2,125
Home Building - 1.6%
Pulte Corp.,
8.10%, 03/01/11 1,000 1,119
Insurance - 3.2%
Ace Ltd.,
6.00%, 04/01/07 1,000 1,070
Anthem, Inc.,
6.80%, 08/01/12 1,000 1,088
--------
2,158
Investment Banking & Brokerage - 6.2%
The Bear Stearns Co., Inc.,
5.70%, 11/15/14 1,000 1,023
The Goldman Sachs Group, Inc.,
6.60%, 01/15/12 1,000 1,105
5.50%, 11/15/14 1,000 1,008
Lehman Bros. Holdings, Inc.,
6.60%, 01/18/12 1,000 1,107
--------
4,243
20 See Financial Notes
- --------------------------------------------------------------------------------
Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens Income Fund (cont'd)
Security
Rate, Maturity Date Principal ($) Value ($)
- --------------------------------------------------------------------------------
Real Estate - 3.3%
Property Trust of America,
6.90%, 02/15/08 750 788
Weingarten Realty Investors,
6.90%, 06/25/27 1,300 1,443
--------
2,231
Retail - 8.0%
The Gap, Inc.,
10.55%, 12/15/08 1,000 1,090
Kroger Co.,
6.80%, 04/01/11 1,000 1,096
6.75%, 04/15/12 1,000 1,106
Target Corp.,
5.50%, 04/01/07 1,000 1,080
Tricon Global Restaurants, Inc.,
8.90%, 04/15/11 1,000 1,085
--------
5,457
Telecommunications - 3.2%
AT&T Wireless, Inc.,
7.50%, 05/01/07 1,000 1,030
Verizon Global Funding Corp.,
7.40%, 09/01/12 1,000 1,151
--------
2,181
--------
Total Corporate Bonds 44,281
Cost: $41,954
MUNICIPAL NOTES - 1.6%
Government of Quebec, 1,000 1,110
6.10%, 01/22/11
Cost: $ 993
U.S. GOVERNMENT AGENCY OBLIGATIONS - 29.9%
Federal Home Loan Mortgage Corporation - 6.1%
4.50%, 07/23/07 2,000 2,082
4.00%, 10/29/07 2,000 2,060
--------
4,142
Federal National Mortgage Association - 14.9%
0.80%, 01/02/03a 3,974 3,974
6.50%, 08/01/31 4,000 4,167
6.00%, 08/01/32 1,952 2,020
--------
10,161
Government National Mortgage Association - 8.9%
6.00%, 04/15/31 201 209
6.50%, 12/15/31 2,000 2,101
6.50%, 06/15/32 3,567 3,746
--------
6,056
--------
Total U.S. Government Agency Obligations 20,359
Cost: $ 20,102
U.S. TREASURY NOTES - 3.0%
3.00%, 11/15/07 2,000 2,024
Cost: $2,015 --------
Total Investments - 99.6% 67,774
Cost: $65,064b
Percentages indicated are based on net assets of $68,043.
a Rate presented represents the effective yield at the time of purchase.
b Aggregate cost for federal income tax purposes is substantially the same.
21
- --------------------------------------------------------------------------------
Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens Ultra Short Bond Fund
Security
Rate, Maturity Date Principal ($) Value ($)
- --------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 4.1%
Bear Stearns Asset Backed Securities,
5.49%, 06/25/32 150 153
Cost: $153
CORPORATE BONDS - 39.7%
Automotive Finance - 6.5%
Ford Credit Auto Owner Trust,
7.09%, 11/17/03 91 92
Volkswagen Alt,
2.36%, 12/20/05 150 151
------
243
Banks - 3.0%
Bank of America Corp.,
7.875%, 05/16/05 100 113
Financial - Diversified - 18.7%
American Express Co.,
6.75%, 06/23/04 100 107
American General Finance,
7.45%, 01/15/05 50 54
Citibank Credit Card Master Trust,
6.65%, 11/15/06 150 163
Citicorp,
7.625%, 05/01/05 50 56
Countrywide Capital,
5.25%, 06/15/04 100 104
Goldman Sachs,
7.25%, 10/01/05 100 111
International Lease Finance Corp.,
5.50%, 06/07/04 100 103
------
698
Pharmaceuticals - 2.8%
Pfizer Inc,
3.625%, 11/01/04 100 103
Telecommunications - 8.7%
CBS Corp.,
7.15%, 05/20/05 150 164
Chesapeake (Bell Atlantic Virginia),
6.13%, 07/15/05 100 108
Pacific Bell,
7.00%, 07/15/04 50 54
------
326
------
Total Corporate Bonds 1,483
Cost: $1,478
MUNICIPAL NOTES - 4.5%
Province of Ontario,
7.00%, 08/04/05 150 167
Cost: $166
U.S. GOVERNMENT AGENCY OBLIGATIONS - 55.9%
Federal Home Loan Mortgage Corporation - 16.8%
4.00%, 03/04/05 25 25
2.50%, 06/30/05 100 100
2.70%, 10/07/05 200 201
4.20%, 11/07/05 100 102
3.20%, 09/27/06 200 202
------
630
Federal National Mortgage Association - 39.1%
0.80%, 01/02/03a 800 800
2.45%, 12/06/04 105 105
3.04%, 10/04/05 200 201
3.00%, 11/28/05 100 100
2.88%, 12/02/05 100 101
4.03%, 08/25/29 150 153
------
1,460
------
Total U.S. Government Agency Obligations 2,090
Cost: $2,084 ------
Total Investments -104.2% 3,893
Cost: $3,881b
Percentages indicated are based on net assets of $3,737.
a Rate presented represents the effective yield at the time of purchase.
b Aggregate cost for federal income tax purposes is substantially the same.
22 See Financial Notes
- --------------------------------------------------------------------------------
Portfolio Holdings (unaudited) December 31, 2002 ($ x 1,000)
- --------------------------------------------------------------------------------
Citizens Money Market Fund
Security
Rate, Maturity Date Principal ($) Value ($)
- --------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 6.9%
Bank of Scotland,
1.50%, 05/06/03 5,000 5,000
City National Bank of New Jersey,
1.70%, 03/17/03a 100 100
Independence Federal Savings Bank,
2.05%, 09/26/03a 100 100
Mercantile Safe Deposit and Trust,
1.60%, 12/09/03 3,000 3,000
Self Help Credit Union,
1.75%, 03/14/03a 100 100
-------
Total Certificates of Deposit 8,300
Cost: $8,300
COMMERCIAL PAPER - 74.8%
American Express Corp.,
1.69%, 03/13/03 5,022 5,005
American General Finance Corp.,
1.62%, 01/17/03 5,000 4,996
Atlantis One Funding Corp.,
1.67%, 03/25/03 5,341 5,320
Blue Ridge Asset,
1.35%, 01/15/03 4,000 3,998
Citicorp,
1.52%, 01/30/03 3,779 3,774
The Coca Cola Co.,
1.28%, 01/07/03 4,577 4,576
Cooperative Association of Tractor Dealers,
1.71%, 02/04/03 3,000 2,994
1.37%, 02/07/03 3,000 2,996
1.77%, 03/05/03 2,715 2,707
1.40%, 03/12/03 2,000 1,995
Dow Jones & Co., Inc.,
1.33%, 01/13/03 2,105 2,104
Galaxy Funding, Inc.,
1.36%, 02/07/03 3,000 2,996
Galleon Capital Corp.,
1.56%, 01/06/03 5,000 4,999
ING America Insurance,
1.32%, 02/05/03 5,000 4,994
The Goldman Sachs Group, Inc.,
1.71%, 02/10/03 2,424 2,419
J.P. Morgan Chase & Co.,
1.76%, 01/24/03 4,638 4,633
Marshall & Ilsley Corp.,
1.30%, 01/14/03 782 782
Marsh and McLennan Cos., Inc.,
1.63%, 01/10/03 4,301 4,299
Metlife Funding, Inc.,
1.50%, 01/10/03 1,187 1,187
1.32%, 01/16/03 2,603 2,602
Pfizer, Inc.,
1.28%, 01/23/03 4,000 3,997
Stellar Funding Group, Inc.,
1.78%, 01/22/03 3,592 3,588
1.55%, 07/25/03 2,024 2,006
UBS Finance Corp.,
1.20%, 01/02/03 5,522 5,522
Volkswagen,
1.33%, 01/13/03 2,079 2,078
1.32%, 01/27/03 3,196 3,193
-------
Total Commercial Paper 89,760
Cost: $89,760
CORPORATE BONDS - 14.1%
The Bank of New York Co., Inc.,
2.14%, 08/12/03b 3,000 3,000
The Bear Stearns Co.,
1.42%, 03/21/03b 5,000 5,000
Merrill Lynch & Co.,
1.42%, 03/05/03b 5,000 5,000
Pelican Capital LLC,
1.70%, 04/01/28b 595 595
Redding Life Care LLC,
1.50%, 10/01/05b 3,300 3,300
-------
Total Corporate Bonds 16,895
Cost: $16,895
MUNICIPAL NOTES - 2.9%
New York State Housing Finance Agency,
1.55%, 11/15/29b 3,500 3,500
Cost: $3,500 -------
Total Investments - 98.7% 118,455
Cost: $118,455c
Percentages indicated are based on net assets of $119,942.
a Restricted from resale.
b Variable rate security. The rate presented represents the rate in effect
at December 31, 2002.
c Represents cost and value for financial reporting and federal income tax
purposes.
23
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities As of December 31, 2002 (unaudited)
- --------------------------------------------------------------------------------
Citizens Citizens Citizens Citizens
Core Growth Emerging Growth Small Cap Core Value
Fund Fund Growth Fund Fund
- -----------------------------------------------------------------------------------------------------------------
Assets
Investments, at value $ 345,193,773 $ 159,742,449 $ 14,841,861 $ 15,559,290
Cash -- -- -- --
Foreign currency -- -- -- --
Receivables:
Interest and dividends 223,680 55,603 1,700 13,214
Investments sold -- -- 300,911 --
Tax reclaims -- -- -- --
Due from investment adviser -- -- -- --
Deferred offering costs -- -- -- --
Prepaid expenses and other assets 24,107 15,399 4,606 3,923
----------- ----------- ---------- ----------
Total assets 345,441,560 159,813,451 15,149,078 15,576,427
Liabilities
Payables:
Dividends to shareholders -- -- -- --
Investments purchased -- -- 74,880 --
Investment management fees 592,628 540,666 16,657 41,427
Administrative fees 118,525 62,488 5,634 5,534
Shareholder service fees 218,754 40,495 3,702 2,955
Distribution expenses 236,533 136,442 12,822 13,835
Other accrued expenses 165,306 211,145 28,384 34,693
Unrealized depreciation on forward
foreign currency contracts -- -- -- --
----------- ----------- ---------- ----------
Total liabilities 1,331,746 991,236 142,079 98,444
- -----------------------------------------------------------------------------------------------------------------
Net assets $ 344,109,814 $ 158,822,215 $ 15,006,999 $ 15,477,983
- -----------------------------------------------------------------------------------------------------------------
Net assets
Standard shares:
Net assets $ 272,537,534 $ 146,774,301 $ 15,006,999 $ 15,477,983
Number of shares outstanding 18,168,346 15,087,014 1,974,422 2,050,544
Net asset value, offering and
redemption price per share $ 15.00 $ 9.73 $ 7.60 $ 7.55
Institutional shares:
Net assets $ 69,488,366 $ 5,235,192 -- --
Number of shares outstanding 5,654,190 527,167 -- --
Net asset value, offering and
redemption price per share $ 12.29 $ 9.93 -- --
Administrative shares:
Net assets $ 2,083,914 $ 6,812,722 -- --
Number of shares outstanding 137,168 692,600 -- --
Net asset value, offering and
redemption price per share $ 15.19 $ 9.84 -- --
Net assets consist of:
Paid-in capital $ 460,151,489 $ 389,424,994 $ 19,997,525 $ 28,229,616
Accumulated net investment income/loss (286,917) (1,243,895) (87,477) (77,058)
Accumulated net realized gains/losses
on investments and foreign currency
transactions (140,751,268) (224,352,140) (4,685,907) (11,353,803)
Net unrealized appreciation/depreciation
on investments and foreign currencies 24,996,510 (5,006,744) (217,142) (1,320,772)
- -----------------------------------------------------------------------------------------------------------------
Net assets $ 344,109,814 $ 158,822,215 $ 15,006,999 $ 15,477,983
- -----------------------------------------------------------------------------------------------------------------
Investments, at cost $ 320,197,263 $ 164,749,193 $ 15,059,003 $ 16,880,062
24 See Financial Notes
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Citizens Citizens Citizens Citizens Citizens Citizens
Balanced Global Equity International Income Ultra Short Money Market
Fund Fund Growth Fund Fund Bond Fund Fund
- -------------------------------------------------------------------------------------------------------
$ 97,787 $ 118,232,536 $ 2,598,954 $ 67,773,826 $ 3,892,702 $ 118,455,058
1,205 -- -- 376 510 1,784,428
-- 898,468 9,822 -- -- --
423 117,073 1,644 815,598 23,568 66,417
-- 521,723 -- -- -- --
-- 93,874 781 -- -- --
1,854 -- -- -- 9,798 --
9,073 -- -- -- 7,417 --
15,091 19,103 255 5,234 17,175 21,887
------- ----------- --------- ---------- --------- -----------
125,433 119,882,777 2,611,456 68,595,034 3,951,170 120,327,790
-- -- -- 259,231 7,100 60,083
-- -- -- -- 200,000 --
-- 405,664 701 148,711 -- 148,334
11 45,256 999 24,659 363 42,381
9 19,415 544 8,027 80 18,444
7 95,647 2,212 56,903 780 --
1,017 168,422 9,952 54,702 5,575 116,737
-- 11,062 -- -- -- --
------- ----------- --------- ---------- --------- -----------
1,044 745,466 14,408 552,233 213,898 385,979
- ------------------------------------------------------------------------------------------------------
$ 124,389 $ 119,137,311 $ 2,597,048 $ 68,042,801 $ 3,737,272 $ 119,941,811
- ------------------------------------------------------------------------------------------------------
$ 124,389 $ 110,353,001 $ 2,597,048 $ 68,042,801 $ 3,737,272 $ 106,593,986
12,495 8,649,706 442,172 6,858,482 372,572 106,665,942
$ 9.96 $ 12.76 $ 5.87 $ 9.92 $ 10.03 $ 1.00
-- $ 6,781,252 -- -- -- $ 13,347,825
-- 522,778 -- -- -- 13,349,445
-- $ 12.97 -- -- -- $ 1.00
-- $ 2,003,058 -- -- -- --
-- 155,818 -- -- -- --
-- $ 12.86 -- -- -- --
$ 125,000 $ 264,047,525 $ 3,762,326 $ 73,474,725 $ 3,718,840 $ 119,949,346
9 (1,142,564) (32,839) (20,731) 6,968 1,548
2 (118,278,216) (513,691) (8,120,635) (241) (9,083)
(622) (25,489,434) (618,748) 2,709,442 11,705 --
- ------------------------------------------------------------------------------------------------------
$ 124,389 $ 119,137,311 $ 2,597,048 $ 68,042,801 $ 3,737,272 $ 119,941,811
- ------------------------------------------------------------------------------------------------------
$ 98,409 $ 143,825,063 $ 3,218,398 $ 65,064,384 $ 3,880,997 $ 118,455,058
25
- ---------------------------------------------------------------------------------------------------------
Statements of Operations For the six months ended December 31, 2002 (unaudited)
- ---------------------------------------------------------------------------------------------------------
Citizens Citizens Citizens Citizens
Core Growth Emerging Growth Small Cap Core Value
Fund Fund Growth Fund Fund
- ---------------------------------------------------------------------------------------------------------
Investment income
Interest $ 71,811 $ 61,641 $ 6,190 $ 4,240
Dividends 1,846,343 382,375 19,829 87,487
------------ ------------ ----------- -----------
Total investment income 1,918,154 444,016 26,019 91,727
Expenses
Investment management fees 909,954 875,323 39,185 78,284
Administrative fees 181,990 87,660 8,481 8,671
Distribution expenses:
Standard shares 360,516 203,477 19,592 21,677
Administrative shares 2,241 8,860 -- --
Shareholder service fees:
Standard shares 371,372 79,249 8,004 8,080
Institutional shares 677 92 -- --
Administrative shares 92 151 -- --
Transfer agent fees:
Standard shares 425,649 239,646 31,958 39,820
Institutional shares 2,047 282 -- --
Administrative shares 695 293 -- --
Accounting expenses 73,140 36,215 5,027 5,119
Custody expenses 9,811 6,611 8,179 2,358
Offering costs -- -- -- --
Registration expenses 5,792 15,309 3,244 5,581
Trustee expenses 32,394 15,629 1,371 1,204
Other expenses 153,359 155,080 6,657 9,563
------------ ------------ ----------- -----------
Expenses before reimbursement or waiver 2,529,729 1,723,877 131,698 180,357
Reimbursement or waiver from adviser (324,658) (35,966) (18,202) (11,572)
------------ ------------ ----------- -----------
Net expenses 2,205,071 1,687,911 113,496 168,785
Net investment income/loss $ (286,917) $ (1,243,895) $ (87,477) $ (77,058)
------------ ------------ ----------- -----------
Realized and unrealized gains/losses
on investments and foreign
currency transactions
Realized gains/losses on investments
and foreign currency transactions $(50,362,157) $(44,270,769) $(3,848,934) $(9,965,459)
Change in unrealized appreciation/
depreciation on investments and
foreign currencies 8,380,062 9,796,811 733,347 7,255,891
Net realized and unrealized
gains/losses on investments and
foreign currencies (41,982,095) (34,473,958) (3,115,587) (2,709,568)
------------ ------------ ----------- -----------
Change in net assets
from operations $(42,269,012) $(35,717,853) $(3,203,064) $(2,786,626)
------------ ------------ ----------- -----------
1 For the period December 20, 2002 (commencement of operations) to December
31, 2002.
2 For the period November 21, 2002 (commencement of operations) to December
31, 2002.
3 Dividend income net of withholding taxes. For the six months ended
December 31, 2002, withholding taxes for the Citizens Global Equity and
International Growth Funds were $59,299 and $1,609, respectively.
26 See Financial Notes
- ------------------------------------------------------------------------------------------------------------
Citizens Citizens Citizens Citizens Citizens Citizens
Balanced Global Equity International Income Ultra Short Money Market
Fund(1) Fund Growth Fund Fund Bond Fund(2) Fund
- ------------------------------------------------------------------------------------------------------------
$ 45 $ 13,909 $ 586 $1,889,383 $ 6,968 $1,172,405
-- 774,848(3) 17,934(3) -- -- --
45 788,757 18,520 1,889,383 6,968 1,172,405
--------- ------------ --------- ---------- -------- ----------
16 628,692 14,612 223,036 1,092 226,624
11 67,945 1,511 36,622 392 69,275
7 145,001 3,479 85,783 780 --
-- 2,490 -- -- -- --
9 37,752 1,196 15,824 80 37,013
-- 151 -- -- -- 368
-- 92 -- -- -- --
288 216,768 5,340 62,399 1,480 164,354
-- 358 -- -- -- 1,207
-- 912 -- -- -- --
612 28,813 3,680 15,765 3,120 24,505
99 12,220 5,650 4,508 560 5,980
427 -- -- -- 2,083 --
419 6,718 1,486 3,584 1,863 11,225
-- 11,279 234 6,047 80 11,576
18 49,089 1,141 21,856 360 48,166
--------- ------------ --------- ---------- -------- ----------
1,906 1,208,280 38,329 475,424 11,890 600,293
(1,870) -- (12,614) -- (11,890) --
--------- ------------ --------- ---------- -------- ----------
36 1,208,280 25,715 475,424 -- 600,293
$ 9 $ (419,523) $ (7,195) $1,413,959 $ 6,968 $ 572,112
--------- ------------ --------- ---------- -------- ----------
$ 2 $ (5,724,741) $ (9,580) $ 578,256 $ (241) $ --
(622) (8,860,245) (402,299) 1,525,508 11,705 --
--------- ------------ --------- ---------- -------- ----------
(620) (14,584,986) (411,879) 2,103,764 11,464 --
$ (611) $(15,004,509) $(419,074) $3,517,723 $ 18,432 $ 572,112
--------- ------------ --------- ---------- -------- ----------
27
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
Citizens Core Citizens Emerging
Growth Fund Growth Fund
- ----------------------------------------------------------------------------------------------------------------------
For the six For the six
months ended For the months ended For the
12/31/02 year ended 12/31/02 year ended
(unaudited) 06/30/02 (unaudited) 06/30/02
- ----------------------------------------------------------------------------------------------------------------------
Operations
Net investment income/loss $ (286,917) $ (1,512,276) $ (1,243,895) $ (3,375,032)
Realized gain/(loss) on investments (50,362,157) (39,059,766) (44,270,769) (65,722,098)
Change in unrealized appreciation/
depreciation on investments 8,380,062 (99,310,432) 9,796,811 (5,409,210)
------------- ------------- ------------- -------------
Change in net assets from operations (42,269,012) (139,882,474) (35,717,853) (74,506,340)
Dividends to shareholders
From net realized gains on investments:
Standard shares -- -- -- --
Increase/decrease in net assets
from capital transactions (27,583,233) (44,810,423) (11,143,287) (32,743,870)
Change in net assets $ (69,852,245) $(184,692,897) $ (46,861,140) $(107,250,210)
------------- ------------- ------------- -------------
Net assets
- ---------------------------------------------------------------------------------------------------------------------
Beginning of period 413,962,059 598,654,956 205,683,355 312,933,565
End of period $ 344,109,814 $ 413,962,059 $ 158,822,215 $ 205,683,355
- ---------------------------------------------------------------------------------------------------------------------
Accumulated net investment income/loss (286,917) -- (1,243,895) --
- ---------------------------------------------------------------------------------------------------------------------
Citizens Global Citizens International
Equity Fund Growth Fund
- ---------------------------------------------------------------------------------------------------------------------
For the six For the six
months ended For the months ended For the
12/31/02 year ended 12/31/02 year ended
Operations (unaudited) 06/30/02 (unaudited) 06/30/02
- ---------------------------------------------------------------------------------------------------------------------
Net investment income/loss $ (419,523) $ (1,187,621) $ (7,195) $ (6,805)
Realized gain/loss on investments and foreign
currency transactions (5,724,741) (58,190,264) (9,580) (445,542)
Change in unrealized appreciation/
depreciation on investments and foreign
currencies (8,860,245) 8,768,398 (402,299) (148,631)
------------- ------------- ------------- -------------
Change in net assets from operations (15,004,509) (50,609,487) (419,074) (600,978)
Dividends to shareholders
From net investment income
Standard shares -- -- -- --
Institutional shares -- -- -- --
------------- ------------- ------------- -------------
Total Dividends -- -- -- --
Increase/decrease in net assets from
capital transactions (13,476,636) (56,075,279) (151,644) 2,131,472
Change in net assets $ (28,481,145) $(106,684,766) $ (570,718) $ 1,530,494
------------- ------------- ------------- -------------
Net assets
- ---------------------------------------------------------------------------------------------------------------------
Beginning of period 147,618,456 254,303,222 3,167,766 1,637,272
End of period $ 119,137,311 $ 147,618,456 $ 2,597,048 $ 3,167,766
- ---------------------------------------------------------------------------------------------------------------------
Accumulated net investment income/loss (1,142,564) (723,041) (32,839) (25,644)
1 Commencement of operations
28 See Financial Notes
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Citizens Small Cap Citizens Citizens
Core Growth Fund Value Fund Balanced Fund
- ----------------------------------------------------------------------------------------------------------
For the six For the six For the
months ended For the months ended period For the For the period
12/31/02 year ended 12/31/02 06/01/02- year ended 12/20/02(1) -12/31/02
(unaudited) 06/30/02 (unaudited) 06/30/02 05/31/02 (unaudited)
- ----------------------------------------------------------------------------------------------------------
$ (87,477) $ (156,548) $ (77,058) $ (25,121) $ (201,215) $ 9
(3,848,934) 815,380 (9,965,459) (163,773) (771) 2
733,347) (1,534,841) 7,255,891) (3,403,915) (6,143,982) (622)
- ------------- ------------- ------------- ------------- ------------- -------------
(3,203,064) (876,009) (2,786,626) (3,592,809) (6,345,968) (611)
-- -- -- -- (2,126,224) --
(249,333) 3,832,696 (2,795,384) (328,336) 19,075,057 125,000
$ (3,452,397) $ 2,956,687 $ (5,582,010) $ (3,921,145) $ 10,602,865 $ 124,389
- ------------- ------------- ------------- ------------- ------------- -------------
- ----------------------------------------------------------------------------------------------------------
18,459,396 15,502,709 21,059,993 24,981,138 14,378,273 --
$ 15,006,999 $ 18,459,396 $ 15,477,983) $ 21,059,993 $ 24,981,138 $ 124,389
- ----------------------------------------------------------------------------------------------------------
(87,477) -- (77,058) -- -- 9
- -------------------------------------------------------------------------------------
Citizens Citizens Ultra Citizens Money
Income Fund Short Bond Fund Market Fund
- -------------------------------------------------------------------------------------
For the six For the six
months ended For the For the period months ended For the
12/31/02 year ended 11/21/02(1)-12/31/02 12/31/02 year ended
(unaudited) 06/30/02 (unaudited) (unaudited) 06/30/02
- -------------------------------------------------------------------------------------
$ 1,413,959 $ 4,289,896 $ 6,968 $ 572,112 $ 2,637,823
578,256 (7,467,992) (241) -- --
1,525,508 2,469,102 11,705 -- --
- ------------- ------------- ------------- ------------- -------------
3,517,723 (708,994) 18,432 572,112 2,637,823
(1,431,137) (4,272,706) (7,100) (478,764) (2,026,320)
-- -- -- (91,800) (602,601)
- ------------- ------------- ------------- ------------- -------------
(1,431,137) (4,272,706) (7,100) (570,564) (2,628,921)
(1,531,812) 830,365 3,725,940 (10,869,910) (13,884,963)
$ 554,774 $ (4,151,335) $ 3,737,272) $ (10,868,362) $ (13,876,061)
- ------------- ------------- ------------- ------------- -------------
- -------------------------------------------------------------------------------------
67,488,027 71,639,362 -- 130,810,173 144,686,234
$ 68,042,801 $ 67,488,027 $ 3,737,272 $ 119,941,811 $ 130,810,173
- -------------------------------------------------------------------------------------
(20,731) (3,553) 6,968 1,548 --
29
- --------------------------------------------------------------------------------
Financial Highlights Citizens Core Growth Fund
- --------------------------------------------------------------------------------
Standard shares Six months Year Year Year Year Year
ended 12/31/02 ended ended ended ended ended
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00 06/30/99 06/30/98
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 16.73 $ 22.12 $ 32.59 $ 30.52 $ 23.46 $ 18.04
Income/loss from investment
operations:
Net investment loss (0.02) (0.09) (0.16) (0.22) (0.15) (0.07)
Net realized and unrealized
gains/losses on
investments (1.71) (5.30) (9.01) 4.08 7.52 6.44
-------------------------------------------------------------------------------------
Total from investment
operations (1.73) (5.39) (9.17) 3.86 7.37 6.37
Less dividends to shareholders:
From net realized gains -- -- (1.30) (1.79) (0.31) (0.95)
-------------------------------------------------------------------------------------
Net asset value, end of period $ 15.00 $ 16.73 $ 22.12 $ 32.59 $ 30.52 $ 23.46
-------------------------------------------------------------------------------------
Total return (%) (10.34)(1) (24.37) (28.42) 12.82 31.58 36.50
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 272,538 $ 326,793 $ 472,779 $ 699,399 $ 578,286 $ 341,395
Ratio of expenses to average net
assets, net of
reimbursement (%) 1.35(2) 1.34 1.34 1.49 1.58 1.59
Ratio of net investment loss
to average net assets (%) (0.29)(2) (0.43) (0.62) (0.75) (0.68) (0.39)
Ratio of expenses to average net
assets prior to
reimbursement (%) 1.55(2) 1.44 1.42 1.52 1.58 1.59
Portfolio turnover rate (%) 79.40 76.40 44.95 20.04 18.04 13.64
- ------------------------------------------------------------------------------------------------------------------------------
1 Not annualized. 2 Annualized.
- --------------------------------------------------------------------------------
Financial Highlights Citizens Core Growth Fund
- --------------------------------------------------------------------------------
Institutional shares Six months Year Year Year Year Year
ended 12/31/02 ended ended ended ended ended
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00 06/30/99 06/30/98
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 13.66 $ 17.94 $ 26.59 $ 25.02 $ 19.13 $ 14.84
Income/loss from investment
operations:
Net investment income 0.02 0.04 0.01 -- 0.01 0.11
Net realized and
unrealized
gains/losses on
investments (1.39) (4.32) (7.36) 3.36 6.19 5.21
-------------------------------------------------------------------------------------
Total from investment
operations (1.37) (4.28) (7.35) 3.36 6.20 5.32
Less dividends to
shareholders:
From net investment income -- -- -- -- -- (0.08)
From net realized gains -- -- (1.30) (1.79) (0.31) (0.95)
-------------------------------------------------------------------------------------
Total dividends -- -- (1.30) (1.79) (0.31) (1.03)
-------------------------------------------------------------------------------------
Net asset value, end of period $ 12.29 $ 13.66 $ 17.94 $ 26.59 $ 25.02 $ 19.13
-------------------------------------------------------------------------------------
Total return (%) (10.03)(1) (23.86) (27.98) 13.67 32.62 37.38
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ x 1,000) $ 69,488 $ 85,140 $ 123,912 $ 180,779 $ 98,705 $ 31,673
Ratio of expenses to average net
assets, net of
reimbursement (%) 0.69(2) 0.68 0.68 0.74 0.83 0.88
Ratio of net investment income
to average net assets (%) 0.36(2) 0.23 0.04 0.00 0.05 0.28
Ratio of expenses to average net
assets prior to
reimbursement (%) 0.76(2) 0.73 0.74 0.74 0.83 0.88
Portfolio turnover rate (%) 79.40 76.40 44.95 20.04 18.04 13.64
- ------------------------------------------------------------------------------------------------------------------------------
1 Not annualized. 2 Annualized.
30 See Financial Notes
- --------------------------------------------------------------------------------
Financial Highlights Citizens Core Growth Fund
- --------------------------------------------------------------------------------
Administrative shares Six months Year Year From
ended 12/31/02 ended ended 02/04/00(1) -
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00
- -------------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 16.91 $ 22.27 $ 32.66 $ 32.09
Income/loss from investment
operations:
Net investment income/loss 0.01 (0.01) (0.03)(2) (0.01)
Net realized and unrealized
gains/losses on
investments (1.73) (5.35) (9.06) 0.58
--------------------------------------------------------
Total from investment operations (1.72) (5.36) (9.09) 0.57
Less dividends to shareholders:
From net realized gains -- -- (1.30) --
--------------------------------------------------------
Net asset value, end of period $ 15.19 $ 16.91 $ 22.27 $ 32.66
--------------------------------------------------------
Total return (%) (10.17)(3) (24.07) (28.11) 1.78(3)
Ratios and supplemental data
- -------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 2,084 $ 2,029 $ 1,964 $ 21
Ratio of expenses to average net
assets, net of
reimbursement (%) 0.96(4) 0.94 0.94 0.99(4)
Ratio of net investment income/
loss to average net assets
(%) 0.09(4) (0.05) (0.14) (0.27)(4)
Ratio of expenses to average net
assets prior to
reimbursement (%) 1.09(4) 1.01 5.63 101.59(4)
Portfolio turnover rate (%) 79.40 76.40 44.95 20.04
- -------------------------------------------------------------------------------------------------
1 Commencement of operations. 2 Based on average shares outstanding. 3 Not
annualized. 4 Annualized.
- --------------------------------------------------------------------------------
Financial Highlights Citizens Emerging Growth Fund
- --------------------------------------------------------------------------------
Standard shares Six months Year Year Year Year Year
ended 12/31/02 ended ended ended ended ended
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00 06/30/99 06/30/98
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 11.82 $ 15.79 $ 33.48 $ 21.76 $ 17.55 $ 14.14
Income/loss from investment
operations:
Net investment loss (0.08) (0.20) (0.21) (0.30)(1) (0.19) (0.20)
Net realized and
unrealized gains/
losses on investments (2.01) (3.77) (11.41) 16.58 6.19 4.61
-------------------------------------------------------------------------------
Total from investment
operations (2.09) (3.97) (11.62) 16.28 6.00 4.41
Less dividends to shareholders:
From net realized gains -- -- (6.07) (4.56) (1.79) (1.00)
-------------------------------------------------------------------------------
Net asset value, end of period $ 9.73 $ 11.82 $ 15.79 $ 33.48 $ 21.76 $ 17.55
-------------------------------------------------------------------------------
Total return (%) (17.68)(2) (25.14) (37.52) 82.19 36.04 33.05
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 146,774 $ 190,812 $ 283,760 $ 386,670 $ 136,137 $ 87,892
Ratio of expenses to average net
assets, net of
reimbursement (%) 1.97(3) 1.80 1.68 1.69 1.82 1.96
Ratio of net investment loss
to average net assets (%) (1.46)(3) (1.39) (1.09) (1.09) (1.20) (1.37)
Ratio of expenses to average net
assets prior to
reimbursement (%) 2.01(3) 1.86 1.75 1.75 1.83 1.96
Portfolio turnover rate (%) 196.73 202.57 136.63 159.95 208.49 245.30
- ------------------------------------------------------------------------------------------------------------------------
1 Based on average shares outstanding. 2 Not annualized. 3 Annualized.
31
- --------------------------------------------------------------------------------
Financial Highlights Citizens Emerging Growth Fund
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
Institutional shares Six months Year Year From
ended 12/31/02 ended ended 11/01/99(1)-
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00
- -----------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 12.02 $ 15.96 $ 33.61 $ 25.67
Income/loss from investment
operations:
Net investment loss (0.04) (0.11)(2) (0.12) (0.11)
Net realized and
unrealized gains/
losses on investments (2.05) (3.83) (11.46) 12.61
------------------------------------------------------
Total from investment operations (2.09) (3.94) (11.58) 12.50
Less dividends to shareholders:
From net realized gains -- -- (6.07) (4.56)
Net asset value, end of period $ 9.93 $ 12.02 $ 15.96 $ 33.61
------------------------------------------------------
Total return (%) (17.39)(3) (24.69) (37.21) 55.02(3)
Ratios and supplemental data
- -----------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 5,235 $ 6,428 $ 19,676 $ 16,284
Ratio of expenses to average net
assets, net of
reimbursement (%) 1.24(4) 1.20 1.30 1.24(4)
Ratio of net investment loss
to average net assets (%) (0.73)(4) (0.78) (0.69) (0.61)(4)
Ratio of expenses to average net
assets prior to
reimbursement (%) 1.28(4) 1.26 1.36 1.31(4)
Portfolio turnover rate (%) 196.73 202.57 136.63 159.95
- -----------------------------------------------------------------------------------------------
1 Commencement of operations. 2 Based on average shares outstanding. 3 Not
annualized. 4 Annualized.
- --------------------------------------------------------------------------------
Financial Highlights Citizens Emerging Growth Fund
- --------------------------------------------------------------------------------
Administrative shares Six months Year Year From
ended 12/31/02 ended ended 02/04/00(1) -
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00
- -----------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 11.92 $ 15.87 $ 33.57 $ 28.70
Income/loss from investment
operations:
Net investment loss (0.05) (0.13) (0.17)(2) (0.10)(2)
Net realized and
unrealized gains/
losses on investments (2.03) (3.82) (11.46) 4.97
------------------------------------------------------
Total from investment operations (2.08) (3.95) (11.63) 4.87
Less dividends to shareholders:
From net realized gains -- -- (6.07) --
------------------------------------------------------
Net asset value, end of
period $ 9.84 $ 11.92 $ 15.87 $ 33.57
------------------------------------------------------
Total return (%) (17.45)(3) (24.89) (37.43) 16.97(3)
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 6,813 $ 8,444 $ 9,497 $ 8
Ratio of expenses to average net
assets, net of
reimbursement (%) 1.51(4) 1.47 1.55 1.55(4)
Ratio of net investment
loss to average net assets (%) (1.01)(4) (1.07) (0.96) (0.90)(4)
Ratio of expenses to average net
assets prior to
reimbursement (%) 1.56(4) 1.53 2.06 158.14(4)
Portfolio turnover rate (%) 196.73 202.57 136.63 159.95
- -----------------------------------------------------------------------------------------------
1 Commencement of operations. 2 Based on average shares outstanding. 3 Not
annualized. 4 Annualized.
32 See Financial Notes
- --------------------------------------------------------------------------------
Financial Highlights Citizens Small Cap Core Growth Fund
- --------------------------------------------------------------------------------
Standard shares Six months Year Year From
ended 12/31/02 ended ended 12/28/99(1) -
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00
- ----------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.18 $ 9.52 $ 11.23 $ 10.00
Income/loss from investment operations:
Net investment loss (0.05) (0.08) (0.05) --
Net realized and
unrealized gains/
losses on investments (1.53) (0.26) (1.64) 1.23
------------------------------------------------------
Total from investment operations (1.58) (0.34) (1.69) 1.23
Less dividends to shareholders:
From net realized gains -- -- (0.02) --
------------------------------------------------------
Net asset value, end of period $ 7.60 $ 9.18 $ 9.52 $ 11.23
------------------------------------------------------
Total return (%) (17.21)(2) (3.57) (15.08) 12.30(2)
Ratios and supplemental data
- ----------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 15,007 $ 18,459 $ 15,503 $ 8,397
Ratio of expenses to average net assets,
net of reimbursement (%) 1.45(3) 1.34 1.34 1.49(3)
Ratio of net investment income/
loss to average net assets (%) (1.12)(3) (0.93) (0.57) 0.00(3)
Ratio of expenses to average net
assets prior to
reimbursement (%) 1.68(3) 1.40 3.20 5.98(3)
Portfolio turnover rate (%) 208.91 294.26 146.62 20.16
- ----------------------------------------------------------------------------------------------
1 Commencement of operations. 2 Not annualized. 3 Annualized.
- --------------------------------------------------------------------------------
Financial Highlights Citizens Value Fund
- --------------------------------------------------------------------------------
Standard shares Six months
ended From Year Year Year Year Year
12/31/02 06/01/02- ended ended ended ended ended
Selected per share data (unaudited) 06/30/02 05/31/02 05/31/01 05/31/00 05/31/99 05/31/98
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 8.74 $ 10.21 $ 15.29 $ 14.58 $ 14.03 $ 12.98 $ 12.23
Income loss from investment operations:
Net investment loss (0.06) (0.01) (0.08) (0.07) (0.08) (0.08) (0.06)
Net realized and unrealized
gains/losses from
investments (1.13) (1.46) (3.57) 2.70 2.05 1.95 2.36
---------------------------------------------------------------------------------------
Total from investment operations (1.19) (1.47) (3.65) 2.63 1.97 1.87 2.30
Less dividends to shareholders:
From net realized gains -- -- (1.43) (1.92) (1.42) (0.82) (1.55)
---------------------------------------------------------------------------------------
Net asset value, end of period $ 7.55 $ 8.74 $ 10.21 $ 15.29 $ 14.58 $ 14.03 $ 12.98
---------------------------------------------------------------------------------------
Total return (%) (13.62)(1) (14.40)(1) (25.58) 20.71 14.36 15.43 20.56
Ratios and supplemental data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 15,478 $ 21,060 $ 24,981 $ 14,378 $ 8,726 $ 4,611 $ 3,123
Ratio of expenses to average net
assets, net of reimbursement (%) 1.95(2) 1.95(2) 1.95 1.95 1.95 1.95 1.95
Ratio of net investment income/
loss to average net assets (%) (0.89)(2) (1.33)(2) (1.04) (0.65) (0.68) (0.79) (0.61)
Ratio of expenses to average net
assets prior to reimbursement (%) 2.08(2) 2.05(2) 2.54 4.63 7.11 10.32 12.30
Portfolio turnover rate (%) 58.08 5.87 34.77 62.55 72.32 73.70 39.00
- ----------------------------------------------------------------------------------------------------------------------------------
1 Not annualized. 2 Annualized.
33
- --------------------------------------------------------------------------------
Financial Highlights Citizens Balanced Fund
- --------------------------------------------------------------------------------
Standard shares From
12/20/02(1) -12/31/02
Selected per share data (unaudited)
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
Income from investment
operations:
Net investment income 0.00(2)
Net realized and
unrealized loss on
investments (0.04)
--------
Total from investment operations (0.04)
Less dividends to shareholders:
From net investment income --
--------
Net asset value, end of period $ 9.96
--------
Total return (%) (0.40)(3)
Ratios and supplemental data
- --------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 124
Ratio of expenses to average
net assets, net of
reimbursement (%) 1.30(4)
Ratio of net investment income
to average net assets (%) 0.33(4)
Ratio of expenses to average
net assets prior to
reimbursement (%) 68.80(4)
Portfolio turnover rate (%) 0.00
- --------------------------------------------------------------------------------
1 Commencement of operations. 2 Less than $0.005 per share. 3 Not annualized.
4 Annualized.
- --------------------------------------------------------------------------------
Financial Highlights Citizens Global Equity Fund
- --------------------------------------------------------------------------------
Standard shares Six months Year Year Year Year Year
ended 12/31/02 ended ended ended ended ended
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00 06/30/99 06/30/98
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.22 $ 18.31 $ 29.99 $ 20.22 $ 16.95 $ 14.47
Income/loss from investment operations:
Net investment loss (0.05) (0.11)(1) (0.16) (0.22)(1) (0.12) (0.20)
Redemption fee 0.01 0.01 -- -- -- --
Net realized and unrealized gains/losses
on investments and foreign
currencies (1.42) (3.99) (9.61) 10.94 3.86 3.24
--------------------------------------------------------------------------------
Total from investment operations (1.46) (4.09) (9.77) 10.72 3.74 3.04
Less dividends to shareholders:
From net realized gains -- -- (1.91) (0.95) (0.47) (0.56)
--------------------------------------------------------------------------------
Net asset value, end of period $ 12.76 $ 14.22 $ 18.31 $ 29.99 $ 20.22 $ 16.95
--------------------------------------------------------------------------------
Total return (%) (10.27)(2) (22.34) (33.69) 53.27 22.34 21.75
Ratios and supplemental data
- ----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 110,353 $ 135,881 $ 236,080 $ 354,818 $ 90,549 $ 49,045
Ratio of expenses to average net
assets, net of
reimbursement (%) 1.97(3) 1.84 1.82 1.82 1.96 2.20
Ratio of net investment loss
to average net assets (%) (0.72)(3) (0.66) (0.71) (0.79) (0.88) (0.76)
Ratio of expenses to average net
assets prior to
reimbursement (%) 1.97(3) 1.84 1.82 1.83 1.96 2.20
Portfolio turnover rate (%) 14.98 132.82 151.95 120.69 64.07 72.33
- ----------------------------------------------------------------------------------------------------------------------------
1 Based on average shares outstanding. 2 Not annualized. 3 Annualized.
34 See Financial Notes
- --------------------------------------------------------------------------------
Financial Highlights Citizens Global Equity Fund
- --------------------------------------------------------------------------------
Institutional shares Six months Year Year From
ended 12/31/02 ended ended 11/01/991 -
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00
- -----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.40 $ 18.46 $ 30.08 $ 23.45
Income/loss from investment operations:
Net investment loss 0.00(2)(3) (0.01)(2) (0.05)(2) (0.05)(2)
Redemption fee 0.01 0.01 -- --
Net realized and
unrealized gains/
losses on investments
and foreign currencies (1.44) (4.06) (9.66) 7.63
----------------------------------------------------------------
Total from investment operations (1.43) (4.06) (9.71) 7.58
Less dividends to shareholders:
From net realized gains -- -- (1.91) (0.95)
----------------------------------------------------------------
Net asset value, end of period $ 12.97 $ 14.40 $ 18.46 $ 30.08
----------------------------------------------------------------
Total return (%) (9.93)(4) (21.99) (33.35) 32.55(4)
Ratios and supplemental data
- -----------------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 6,781 $ 9,531 $ 16,475 $ 12,544
Ratio of expenses to average net
assets, net of
reimbursement (%) 1.30(5) 1.27 1.39 1.39(5)
Ratio of net investment
loss to average net assets (%) (0.02)(5) (0.05) (0.23) (0.25)(5)
Ratio of expenses to average net
assets, prior to
reimbursement (%) 1.30(5) 1.27 1.42 1.43(5)
Portfolio turnover rate (%) 14.98 132.82 151.95 120.69
- -----------------------------------------------------------------------------------------------------------
1 Commencement of operations. 2 Based on average shares outstanding. 3 Less
than $0.005 per share. 4 Not annualized. 5 Annualized.
- --------------------------------------------------------------------------------
Financial Highlights Citizens Global Equity Fund
- --------------------------------------------------------------------------------
Administrative shares Six months Year Year From
ended 12/31/02 ended ended 02/04/001 -
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00
- -----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.30 $ 18.38 $ 30.02 $ 33.45
Income/loss from investment operations:
Net investment loss (0.02)(2) (0.06)(2) (0.11)(2) (0.06)
Redemption fee 0.01 0.01 -- --
Net realized and
unrealized losses
on investments and
foreign currencies (1.43) (4.03) (9.62) (3.37)
----------------------------------------------------------------
Total from investment operations (1.44) (4.08) (9.73) (3.43)
Less dividends to shareholders:
From net realized gains -- -- (1.91) --
Net asset value, end of period $ 12.86 $ 14.30 $ 18.38 $ 30.02
----------------------------------------------------------------
Total return (%) (10.07)(3) (22.20) (33.52) (10.25)(3)
Ratios and supplemental data
- -----------------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 2,003 $ 2,207 $ 1,748 $ 1
Ratio of expenses to average net
assets, net of
reimbursement (%) 1.63(4) 1.64 1.68 1.68(4)
Ratio of net investment loss
to average net assets (%) (0.38)(4) (0.39) (0.48) (0.48)(4)
Ratio of expenses to average net
assets prior to
reimbursement (%) 1.63(4) 1.64 3.18 296.20(4)
Portfolio turnover rate (%) 14.98 132.82 151.95 120.69
- -----------------------------------------------------------------------------------------------------------
1 Commencement of operations. 2 Based on average shares outstanding. 3 Not
annualized. 4 Annualized.
35
- --------------------------------------------------------------------------------
Financial Highlights Citizens International Growth Fund
- --------------------------------------------------------------------------------
Standard shares Six months
ended Year From
12/31/02 ended 12/20/001-
Selected per share data (unaudited) 06/30/02 06/30/01
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 6.73 $ 8.22 $ 10.00
Income/loss from investment
operations:
Net investment income/loss (0.03) (0.02)(2) 0.04(2)
Redemption fee -- 0.02 --
Net realized and
unrealized losses
on investments and
foreign currencies (0.83) (1.49) (1.82)
---------------------------------------
Total from investment operations (0.86) (1.49) (1.78)
---------------------------------------
Net asset value, end of period $ 5.87 $ 6.73 $ 8.22
---------------------------------------
Total return (%) (12.78)(3) (18.13) (17.80)(3)
Ratios and supplemental data
- --------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 2,597 $ 3,168 $ 1,637
Ratio of expenses to average net
assets, net of
reimbursement (%) 1.85(4) 1.85 1.85(4)
Ratio of net investment income/
loss to average net assets (%) (0.52)(4) (0.23) 0.86(4)
Ratio of expenses to average net
assets prior to
reimbursement (%) 2.76(4) 3.06 17.47(4)
Portfolio turnover rate (%) 10.61 158.84 39.88
- --------------------------------------------------------------------------------
1 Commencement of operations. 2 Based on average shares outstanding. 3 Not
annualized. 4 Annualized.
36 See Financial Notes
- --------------------------------------------------------------------------------
Financial Highlights Citizens Income Fund
- --------------------------------------------------------------------------------
Standard shares Six months Year Year Year Year Year
ended 12/31/02 ended ended ended ended ended
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00 06/30/99 06/30/98
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.62 $ 10.28 $ 10.20 $ 10.51 $ 11.03 $ 10.56
Income/loss from investment operations:
Net investment income 0.20 0.58 0.68 0.65 0.59 0.60
Net realized and unrealized
gains/losses on
investments 0.30 (0.66) 0.10 (0.32) (0.50) 0.49
-------------------------------------------------------------------------
Total from investment operations 0.50 (0.08) 0.78 0.33 0.09 1.09
Less dividends to shareholders:
From net investment income (0.20) (0.58) (0.70) (0.63) (0.59) (0.60)
From net realized gains -- -- 0.00(1) (0.01) (0.02) (0.02)
-------------------------------------------------------------------------
Total dividends (0.20) (0.58) (0.70) (0.64) (0.61) (0.62)
-------------------------------------------------------------------------
Net asset value, end of period $ 9.92 $ 9.62 $ 10.28 $ 10.20 $ 10.51 $ 11.03
-------------------------------------------------------------------------
Total return (%) 5.31(2) (0.87) 7.87 3.35 0.78 10.49
Ratios and supplemental data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 68,043 $ 67,488 $ 71,639 $ 61,836 $ 62,837 $ 51,366
Ratio of expenses to average net
assets, net of
reimbursement (%) 1.39(3) 1.38 1.40 1.45 1.45 1.74
Ratio of net investment income
to average net assets (%) 4.12(3) 5.77 6.55 6.34 5.50 5.55
Ratio of expenses to average net
assets prior to
reimbursement (%) 1.39(3) 1.38 1.48 1.47 1.49 1.86
Portfolio turnover rate (%) 110.13 54.05 60.53 52.96 44.07 80.14
- --------------------------------------------------------------------------------------------------------------------
1 Less than $0.005 per share. 2 Not annualized. 3 Annualized.
- --------------------------------------------------------------------------------
Financial Highlights Citizens Ultra Short Bond Fund
- --------------------------------------------------------------------------------
Standard shares From
11/21/02(1)-12/31/02
Selected per share data (unaudited)
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
Income from investment operations:
Net investment income 0.02
Net realized and
unrealized gains on
investments 0.03
--------
Total from investment operations 0.05
Less dividends to shareholders:
From net investment income (0.02)
--------
Net asset value, end of period $ 10.03
--------
Total return (%) 0.53(2)
Ratios and supplemental data
- --------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 3,737
Ratio of expenses to average
net assets, net of reimbursement (%) 0.00
Ratio of net investment income to average net assets (%) 2.22(3)
Ratio of expenses to average net assets prior to reimbursement (%) 3.78(3)
Portfolio turnover rate (%) 0.00
- --------------------------------------------------------------------------------
1 Commencement of operations. 2 Not annualized. 3 Annualized.
37
- --------------------------------------------------------------------------------
Financial Highlights Citizens Money Market Fund
- --------------------------------------------------------------------------------
Standard shares Six months
ended Year Year Year Year Year
12/31/02 ended ended ended ended ended
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00 06/30/99 06/30/98
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income 0.00(1) 0.02 0.05 0.05 0.04 0.05
Less dividends to shareholders:
From net investment income (0.00)(1) (0.02) (0.05) (0.05) (0.04) (0.05)
-------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------------------
Total return (%) 0.42(2) 1.71 5.23 4.67 4.07 4.54
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 106,594 $ 114,271 $ 117,211 $ 112,700 $ 105,740 $ 103,597
Ratio of expenses to average net
assets, net of
reimbursement (%) 0.97(3) 0.92 0.89 1.17 1.19 1.21
Ratio of net investment income
to average net assets (%) 0.84(3) 1.72 5.08 4.59 4.00 4.46
Ratio of expenses to average net
assets prior to
reimbursement (%) 0.97(3) 0.92 0.89 1.18 1.24 1.23
- ------------------------------------------------------------------------------------------------------------------------
1 Less than $.005 per share. 2 Not annualized. 3 Annualized.
- --------------------------------------------------------------------------------
Financial Highlights Citizens Money Market Fund
- --------------------------------------------------------------------------------
Institutional shares
Six months Year Year Year Year Year
ended 12/31/02 ended ended ended ended ended
Selected per share data (unaudited) 06/30/02 06/30/01 06/30/00 06/30/99 06/30/98
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income 0.01 0.02 0.05 0.05 0.05 0.05
Less dividends to shareholders:
From net investment income (0.01) (0.02) (0.05) (0.05) (0.05) (0.05)
-------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------------------
Total return (%) 0.59(1) 1.97 5.43 5.04 4.58 5.23
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ x 1,000) $ 13,348 $ 16,539 $ 27,475 $ 23,370 $ 22,464 $ 18,178
Ratio of expenses to average net
assets, net of
reimbursement (%) 0.63(2) 0.67 0.70 0.81 0.70 0.56
Ratio of net investment income
to average net assets (%) 1.18(2) 1.95 5.22 4.93 4.47 5.11
Ratio of expenses to average net
assets prior to
reimbursement (%) 0.63(2) 0.67 0.70 0.82 0.70 0.56
- ------------------------------------------------------------------------------------------------------------------------
1 Not annualized. 2 Annualized.
38 See Financial Notes
- --------------------------------------------------------------------------------
Financial Notes (unaudited)
- --------------------------------------------------------------------------------
Organization
Citizens Funds (the "Trust"), a Massachusetts Business Trust, is registered as
an open-end management investment company under the Investment Company Act of
1940, as amended (the "1940 Act"). The Trust contains the following funds
(individually a "fund," collectively the "funds"):
Fund Short Name Fund Short Name
- ---- ---------- ---- ----------
Citizens Core Growth Fund Core Growth Fund Citizens Global Equity Fund Global Equity Fund
Citizens Emerging Growth Fund Emerging Growth Fund Citizens International Growth Fund International Growth Fund
Citizens Small Cap Core Growth Fund Small Cap Core Growth Fund Citizens Income Fund Income Fund
Citizens Value Fund Value Fund Citizens Ultra Short Bond Fund Ultra Short Bond Fund
Citizens Balanced Fund Balanced Fund Citizens Money Market Fund Money Market Fund
The funds are authorized to issue an unlimited number of shares of beneficial
interest with no par value. The Core Growth Fund, Emerging Growth Fund and
Global Equity Fund currently offer three classes of shares: Standard shares,
Institutional shares and Administrative shares. The Money Market Fund offers two
classes of shares: Standard shares and Institutional shares. The Small Cap Core
Growth Fund, Value Fund, Balanced Fund, International Growth Fund, Income Fund
and Ultra Short Bond Fund offer one class of shares: Standard shares. Each class
of shares in the funds has identical rights and privileges except with respect
to fees paid under class-specific agreements, voting rights on matters affecting
a single class of shares, and the exchange privilege of each class of shares.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
funds in the preparation of their financial statements. The policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
Securities Valuation
Equity securities are valued at the last sale price on the primary exchange on
which such securities are traded or on the principal over-the-counter market on
which such securities are traded, as of the close of business on the day the
securities are valued, or lacking any sales, at the last available bid price for
domestic securities and halfway between the bid and ask price for international
securities. Fixed-income investments generally are valued at the bid price for
securities. Securities may also be valued on the basis of valuations furnished
by a pricing service that uses both dealer-supplied valuations and valuations
based upon analysis of market data or other factors if these valuations are
believed to more accurately reflect the fair value of such securities.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sales) are
valued at fair value, using procedures determined in good faith by the Board of
Trustees. Short-term securities maturing within 60 days and investments of the
Money Market Fund are valued at amortized cost, which approximates fair value.
Under the amortized cost method, premium or discount, if any, is amortized or
accreted, respectively, on a constant (straight-line) basis to the maturity of
the security.
Security Transactions and Related Investment Income
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on the
identified cost basis, unless otherwise specified. Interest income is recorded
on an accrual basis and includes, where applicable, the amortization or
accretion of a premium or discount. Dividend income is recorded on the
ex-dividend date.
Foreign Currency Translation
The accounting records of the funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are translated into U.S. dollars at the current rate of exchange. Purchases and
sales of securities, and
39
- --------------------------------------------------------------------------------
Financial Notes (unaudited)
- --------------------------------------------------------------------------------
income and expenses, are translated into U.S. dollars at the prevailing rate of
exchange on the respective dates of such transactions. The changes in foreign
exchange rates on investments are not isolated on the Statement of Operations.
Such fluctuations are included with the net realized and unrealized gain or loss
on investments.
Foreign Currency Contracts
The Global Equity Fund and International Growth Fund use foreign currency
contracts to facilitate transactions in foreign-denominated securities. Losses
may arise from changes in the value of the foreign currency or if the
coun-terparties do not perform under the contract's terms. The U.S. dollar value
of foreign currency contracts is determined using the contractual currency
exchange rates established at the time of each trade.
Repurchase Agreements
The funds may acquire repurchase agreements with an entity which is a member of
the Federal Reserve System collateralized by instruments issued by the U.S.
Government, its agencies or instrumentalities. The repurchase price generally
equals the price paid by a fund plus interest negotiated on the basis of current
short-term rates, which may be more or less than the rate on the underlying
securities. It is the funds' policy to receive collateral securities of which
the value, including accrued interest, is at least equal to 102% of the amount
to be repaid to the funds under each agreement at its maturity. Collateral
subject to repurchase agreements is held by the funds' custodian or another
qualified custodian.
Restricted Securities
The funds are permitted to invest in privately placed securities. These
securities may be resold in transactions exempt from registration, or to the
public, if the securities are registered under the Securities Act of 1933.
Disposal of these securities may involve time-consuming negotiations and
expense, and the prompt sale at an acceptable price may be difficult. Restricted
securities (excluding Rule 144A issues) are valued at their fair value in good
faith under procedures approved by the Board of Trustees. Restricted securities
held by the funds at the end of the period are presented in the fund's Portfolio
Holdings.
Redemption Fee
The Global Equity Fund and International Growth Fund charge a redemption fee of
2% (paid to the funds) with respect to shares of those funds redeemed within 60
days of purchase. The fee does not apply to shares purchased through the
reinvestment of dividends or other distributions, redemptions by the funds of
accounts below minimum balances, redemptions due to shareholder death or
disability, or certain omnibus accounts or retirement plans. For the period
ended December 31, 2002, the Global Equity and International Growth Funds
collected $123,186 and $692 in redemption fees, respectively. These fees are
included in the "increase/decrease in net assets from capital transactions"
amounts in the Statements of Changes in Net Assets.
Dividends to Shareholders
The Core Growth Fund, Emerging Growth Fund, Small Cap Core Growth Fund, Value
Fund, Global Equity Fund and International Growth Fund declare and distribute
dividends from net investment income, if any, to shareholders annually. The
Balanced Fund declares and distributes dividends from net investment income to
shareholders quarterly. The Income Fund declares and distributes dividends from
net investment income to shareholders monthly. Dividends from net investment
income for the Ultra Short Bond Fund and the Money Market Fund are declared
daily and paid monthly. The funds' net realized gains, if any, are distributed
to shareholders at least annually.
Additional dividends may also be paid to the funds' shareholders to the extent
necessary to avoid federal excise tax on certain undistributed income and net
realized gains. The amount of dividends from net investment income and net
realized gains are determined in accordance with federal income tax regulations
which may differ from GAAP. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature (i.e., reclassification of market discounts, gain/loss, paydowns, and
distributions), such amounts are reclassified to capital; temporary differences
do not require reclassification.
40
- --------------------------------------------------------------------------------
Financial Notes (unaudited)
- --------------------------------------------------------------------------------
Federal Income Taxes
Each fund is a separate taxable entity for federal tax purposes. Each fund has
qualified and intends to qualify each year as a "regulated investment company"
under Subchapter M of the Internal Revenue Code, as amended and distributes
substantially all of its taxable net investment income and net realized gains,
if any, to their shareholders.
Fees and Other Transactions with Affiliates
Investment Management Fee
Citizens Advisers, Inc. (the "Adviser") serves as Adviser to each of the funds.
Under the terms of the management contract, the Adviser is paid a fee that is
computed daily based on an annual rate for each fund's average daily net assets.
Those rates are as follows:
Fee Rate Fee Rate Fee Rate
-------- -------- --------
Core Growth Fund 0.50% Balanced Fund 0.65% Income Fund 0.65%
Emerging Growth Fund 1.00% Global Equity Fund 1.00% Ultra Short Bond Fund 0.35%
Small Cap Core Growth Fund 0.50% International Growth Fund 1.05% Money Market Fund 0.35%
Value Fund 0.70%
From July 1, 2002 to November 1, 2002, the Adviser was paid a fee based on an
annual rate of 1.00% for the Value Fund.
State Street Global Advisors Funds Management, Inc. serves as the Sub-Adviser
for the Global Equity Fund and International Growth Fund. For its services, the
Sub-Adviser receives a fee computed daily based on an annual rate for each
funds' average daily net assets, paid by the Adviser as follows:
Fee Rate
--------
Global Equity Fund 0.35% of the first $500 million, 0.25% thereafter
International Growth Fund 0.40% of the first $500 million, 0.30% thereafter
For the period July 1, 2002 to October 30, 2002 Meyers Capital Management, LLC
("Meyers") served as the Sub-Adviser for the Citizens Value Fund. For its
services, Meyers received a fee based on an annual rate of 0.30% of the first
$100 million of average daily net assets and 0.45% of average daily net assets
in excess of $100 million, paid by the Adviser.
Distribution Fee
Citizens Securities, Inc. (the "Distributor") is a wholly owned subsidiary of
the Adviser and serves as the funds' Distributor. Pursuant to Rule 12b-1 under
the 1940 Act, the Trust's shareholders have adopted a separate distribution plan
with respect to the funds' Standard and Administrative shares pursuant to which
the funds, except the Money Market Fund, compensate the Distributor for services
in an amount equal to 0.25% of average annual net assets.
Administrative and Shareholder Service Fees
The Adviser, with whom certain officers and trustees are affiliated, performs
administrative duties for the Trust under a separate administrative contract,
which provides for the reimbursement of out of pocket expenses as well as fees
for services rendered. In accordance with the terms of the administrative
contract, fees and expenses are accrued daily based on average daily net assets
of each fund at the annual rate of 0.10%.
In addition, Citizens Securities, Inc., a wholly owned subsidiary of the
Adviser, provides a number of administrative services to the Trust relating
primarily to shareholder services and communications, and is paid an account fee
for providing such services and communications for each of the individual funds
with the exception of the Core Growth Fund, Standard shares. The Core Growth
Fund, Standard shares, may be charged a shareholder service fee of up to 0.35%
based on the average daily net assets of the class. For the period ended
December 31, 2002, a fee of 0.25% was charged.
41
- --------------------------------------------------------------------------------
Financial Notes (unaudited)
- --------------------------------------------------------------------------------
Transfer Agency, Fund Accounting and Custody
BISYS Fund Services Ohio, Inc. provides transfer agency and fund accounting
services to the funds pursuant to certain fee arrangements. Fifth Third Bank
acts as custodian for the funds. Custody expenses may be incurred or offset from
fees or credits arising from cash balances maintained on deposit. Transfer agent
fees also include the cost of services rendered by third parties to provide
sub-transfer agency services.
Trustee Fees
Certain officers and trustees of the Trust are "interested persons," as defined
in the 1940 Act, of the Adviser. Currently, each Trustee who is not an
"interested person" receives an annual retainer of $12,000 and $1,250 for each
day's attendance at a Trustee meeting. The independent trustees have elected a
Chair and Vice Chair, who each receive an annual retainer of $17,000, and a
committee chair for Social Responsibility Committee, who receives an annual
retainer of $14,500.
Expense Allocation
Expenses directly attributable to a fund are charged to that fund. Expenses not
directly attributable to a fund are allocated proportionately among various or
all funds within the Trust in relation to the net assets of each fund or on
another reasonable basis. Expenses specific to a class are charged to that
class.
Fee Reductions and Reimbursements
The Adviser contractually agreed to limit the total expenses, exclusive of
taxes, brokerage commissions and extraordinary expenses, for certain classes of
the funds to the extent they exceeded the following limits:
Expense Expense
Fund Class Limitation Fund Class Limitation
- -------------------------------------------------- --------------------------------------------------------
Core Growth Fund Standard 1.39% Global Equity Fund Standard 2.05%
Institutional 0.74% Institutional 1.39%
Administrative 1.06% Administrative 1.68%
Emerging Growth Fund Institutional 1.30% International Growth
Administrative 1.55% Fund Standard 1.85%
Small Cap Core Income Fund Standard 1.40%
Growth Fund Standard 1.45%
Money Market Fund Standard 1.50% of the first
Value Fund Standard 1.95% $40 million of
assets and
1.00% thereafter
For the period July 1, 2002 to November 30, 2002, the Adviser contractually
agreed to limit total expenses for the Core Growth Fund to 1.34%, 0.68% and
0.94% for the Standard, Institutional and Administrative shares, respectively.
The Adviser voluntarily waived 0.10% of its fee for the Emerging Growth Fund
when the fund's monthly average net assets exceeded $100 million. The Adviser
voluntarily waived fees and reimbursed expenses so that total annual operating
expenses did not exceed 1.30% on the Balanced Fund. In addition, the Adviser
voluntarily waived all fees and reimbursed all expenses on the Ultra Short Bond
Fund. The Adviser may terminate these waivers at any time.
Investment Transactions
The following summarizes purchases and sales of investment securities, other
than short-term investments, by fund for the period ended December 31, 2002:
Fund Purchases Sales Fund Purchases Sales
- --------------------------------------------------------- ------------------------------------------------------
Core Growth Fund $ 282,948,073 $ 314,579,749 Global Equity Fund $ 18,597,422 $ 29,671,977
Emerging Growth Fund 334,754,070 343,446,707 International Growth Fund 293,671 285,995
Small Cap Core Growth Fund 31,936,025 32,204,125 Income Fund 70,984,587 75,251,104
Value Fund 9,897,491 12,941,882 Ultra Short Bond Fund 3,038,359 --
Balanced Fund 94,352 1,007
42
- --------------------------------------------------------------------------------
Financial Notes
- --------------------------------------------------------------------------------
Capital Shares
At December 31, 2002, there were an unlimited amount of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the
funds are as follows:
Small Cap Core
Core Growth Fund Emerging Growth Fund Growth Fund
- ---------------------------------------------------------------------------------------------------------------------
Six months Six months Six months
ended Year ended Year ended Year
12/31/02 ended 12/31/02 ended 12/31/02 ended
Capital transactions (unaudited) 06/30/02 (unaudited) 06/30/02 (unaudited) 06/30/02
- ---------------------------------------------------------------------------------------------------------------------
Standard Shares
Proceeds from shares issued $11,995,874 $42,567,841 $22,280,739 $56,221,231 $2,345,327 $12,270,553
Dividends reinvested -- -- -- -- -- --
Cost of shares redeemed (32,759,057) (77,794,151) (33,130,593) (80,428,934) (2,594,660) (8,437,857)
- ---------------------------------------------------------------------------------------------------------------------
Total (20,763,183) (35,226,310) (10,849,854) (24,207,703) (249,333) 3,832,696
- ---------------------------------------------------------------------------------------------------------------------
Institutional Shares
Proceeds from shares issued 15,568,109 31,393,835 1,732,029 3,944,080 -- --
Dividends reinvested -- -- -- -- -- --
Cost of shares redeemed (22,643,960) (41,615,831) (1,826,186) (13,893,132) -- --
- ---------------------------------------------------------------------------------------------------------------------
Total (7,075,851) (10,221,996) (94,157) (9,949,052) -- --
- ---------------------------------------------------------------------------------------------------------------------
Administrative Shares
Proceeds from shares issued 758,005 943,987 2,896,911 9,721,056 -- --
Dividends reinvested -- -- -- -- -- --
Cost of shares redeemed (502,204) (306,104) (3,096,187) (8,308,171) -- --
- ---------------------------------------------------------------------------------------------------------------------
Total 255,801 637,883 (199,276) 1,412,885 -- --
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets
from capital transactions $(27,583,233) $(44,810,423) $(11,143,287) $(32,743,870) $(249,333) $3,832,696
- ---------------------------------------------------------------------------------------------------------------------
Share transactions
- ---------------------------------------------------------------------------------------------------------------------
Standard Shares
Issued 783,875 2,152,690 2,143,893 4,217,604 297,807 1,251,105
Reinvested -- -- -- -- -- --
Redeemed (2,151,234) (3,989,536) (3,204,374) (6,041,917) (334,707) (868,569)
- ---------------------------------------------------------------------------------------------------------------------
Net change (1,367,359) (1,836,841) (1,060,481) (1,824,313) (36,900) 382,536
- ---------------------------------------------------------------------------------------------------------------------
Institutional Shares
Issued 1,244,890 1,964,990 165,330 293,475 -- --
Reinvested -- -- -- -- -- --
Redeemed (1,823,671) (2,637,569) (172,943) (991,621) -- --
- ---------------------------------------------------------------------------------------------------------------------
Net change (578,781) (672,579) (7,613) (698,146) -- --
- ---------------------------------------------------------------------------------------------------------------------
Administrative Shares
Issued 48,669 47,642 277,417 721,866 -- --
Reinvested -- -- -- -- -- --
Redeemed (31,504) (15,822) (293,255) (611,698) -- --
- ---------------------------------------------------------------------------------------------------------------------
Net change 17,165 31,820 (15,838) 110,168 -- --
- ---------------------------------------------------------------------------------------------------------------------
Change in shares from
share transactions (1,928,975) (2,477,605) (1,083,932) (2,412,291) (36,900) 382,536
- ---------------------------------------------------------------------------------------------------------------------
43
- --------------------------------------------------------------------------------
Financial Notes
- --------------------------------------------------------------------------------
Capital Shares
Balanced Global Value
Value Fund Fund Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Six months From
ended From Year 12/20/02(1) - Six months Year
12/31/02 06/01/02 - ended 12/31/02 ended ended
Capital transactions (unaudited) 06/30/02 05/31/02 (unaudited) 12/31/02 06/30/02
- ------------------------------------------------------------------------------------------------------------------------------------
Standard Shares
Proceeds from shares issued $ 3,988,232 $ 938,031 $ 24,800,162 $ 125,000 $ 19,399,019 $ 198,374,332
Dividends reinvested -- -- 2,070,609 -- -- --
Cost of shares redeemed (6,783,616) (1,266,367) (7,795,714) -- (31,077,277) (251,921,233)
- ------------------------------------------------------------------------------------------------------------------------------------
Total (2,795,384) (328,336) 19,075,057 125,000 (11,678,258) (53,546,901)
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
Proceeds from shares issued -- -- -- -- 26,043,373 54,298,201
Dividends reinvested -- -- -- -- -- --
Cost of shares redeemed -- -- -- -- (27,871,069) (57,777,479)
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- (1,827,696) (3,479,278)
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Shares
Proceeds from shares issued -- -- -- -- 376,081 1,591,347
Dividends reinvested -- -- -- -- -- --
Cost of shares redeemed -- -- -- -- (346,763) (640,447)
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- 29,318 950,900
- ------------------------------------------------------------------------------------------------------------------------------------
Change in net assets
from capital transactions $ (2,795,384) $ (328,336) $ 19,075,057 $ 125,000 $ (13,476,636) $ (56,075,279)
- ------------------------------------------------------------------------------------------------------------------------------------
Share transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Standard Shares
Issued 524,856 100,445 1,987,625 12,495 1,499,165 12,492,604
Reinvested -- -- 165,516 -- -- --
Redeemed (883,171) (138,633) (646,233) -- (2,407,584) (15,828,132)
- ------------------------------------------------------------------------------------------------------------------------------------
Net change (358,315) (38,188) 1,506,908 12,495 (908,419) (3,335,528)
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
Issued -- -- -- -- 1,993,704 3,421,162
Reinvested -- -- -- -- -- --
Redeemed -- -- -- -- (2,132,664) (3,652,158)
- ------------------------------------------------------------------------------------------------------------------------------------
Net change -- -- -- -- (138,960) (230,996)
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative Shares
Issued -- -- -- -- 28,852 99,269
Reinvested -- -- -- -- -- --
Redeemed -- -- -- -- (27,378) (40,048)
- ------------------------------------------------------------------------------------------------------------------------------------
Net change -- -- -- -- 1,474 59,221
- ------------------------------------------------------------------------------------------------------------------------------------
Change in shares from
share transactions (358,315) (38,188) 1,506,908 12,495 (1,045,905) (3,507,303)
- ------------------------------------------------------------------------------------------------------------------------------------
1 Commencement of operations.
44
- --------------------------------------------------------------------------------
Financial Notes
- --------------------------------------------------------------------------------
International Ultra Short
Growth Fund Income Fund Bond Fund Money Market Fund
- -------------------------------------------------------------------------------------------------------------------------
Six months Six months From Six months
months ended Year ended Year 11/21/02(1)- ended Year
12/31/02 ended 12/31/02 ended 12/31/02 12/31/02 ended
(unaudited) 06/30/02 (unaudited) 06/30/02 (unaudited) (unaudited) 06/30/02
- -------------------------------------------------------------------------------------------------------------------------
$ 735,972 $ 4,791,279 $ 6,718,110 $ 26,499,837 $ 3,850,940 $ 47,040,781 $ 131,426,668
-- -- 1,335,027 3,903,979 -- 503,066 2,214,847
(887,616) (2,659,807) (9,584,949) (29,573,451) (125,000) (55,221,953) (136,588,995)
- -------------------------------------------------------------------------------------------------------------------------
(151,644) 2,131,472 (1,531,812) 830,365 3,725,940 (7,678,104) (2,947,480)
- -------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- 1,994,299 17,644,804
-- -- -- -- -- 98,194 658,558
-- -- -- -- -- (5,284,298) (29,240,845)
- -------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- (3,191,805) (10,937,483)
- -------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
$ (151,644) $ 2,131,472 $ (1,531,812) $ 830,365 3,725,940 $ (10,869,910) $ (13,884,963)
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
122,682 644,662 688,827 2,597,522 372,572 47,040,781 131,415,588
-- -- 137,088 383,963 -- 503,068 2,214,857
(151,412) (372,894) (982,784) (2,932,132) -- (55,221,953) (136,588,544)
- -------------------------------------------------------------------------------------------------------------------------
(28,730) 271,768 (156,869) 49,353 372,572 (7,678,104) (2,958,099)
- -------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- 1,994,299 17,655,439
-- -- -- -- -- 98,194 658,558
-- -- -- -- -- (5,284,298) (29,240,845)
- -------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- (3,191,805) (10,926,848)
- -------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
(28,730) 271,768 (156,869) 49,353 372,572 (10,869,909) (13,884,947)
- -------------------------------------------------------------------------------------------------------------------------
Meyers Pride Value Fund Reorganization
The Trust entered an agreement and plan of reorganization and liquidation with
Meyers Investment Trust on behalf of its series Meyers Pride Value Fund,
pursuant to which the net assets of the Meyers Pride Value Fund ($12,506,840)
were transferred to the Citizens Value Fund in exchange for 1,083,741 shares of
the Citizens Value Fund. The reorganization, which qualified as a tax-free
exchange for federal income tax purposes, was completed on September 24, 2001,
following approval by shareholders of the Meyers Pride Value Fund at a special
shareholder meeting. The aggregate net assets of the Meyers Pride Value Fund and
the Citizens Value Fund were $12,506,840 and $0, respectively, prior to the
reorganization and the combined net assets were $12,506,840 immediately after
the reorganization.
45
Trustees:
Judy Belk
Walter D. Bristol, Jr.
Sophia Collier
Jeannie H. Diefenderfer
Pablo S. Eisenberg
Orlando Hernandez
Mitchell A. Johnson
Martha S. Pope
Distributor:
Citizens Securities, Inc.
230 Commerce Way
Portsmouth, NH 03801
800.223.7010
603.436.5152
Manager:
Citizens Advisers, Inc.
230 Commerce Way
Portsmouth, NH 03801
800.223.7010
603.436.5152
Custodian:
Fifth Third Bank
Cincinnati, OH 45263
Transfer and Accounting Agent:
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
Legal Counsel:
Bingham McCutchen LLP
Boston, MA 02110
Independent Auditors:
PricewaterhouseCoopers LLP
Columbus, OH 43215
- --------------------------------------------------------------------------------
Citizens Funds(R)
Citizens Core Growth Fund(R); Citizens Emerging Growth Fund(R); Citizens Small
Cap Core Growth Fund(R); Citizens Value Fund(SM); Citizens Balanced Fund(SM);
Citizens Global Equity Fund(R); Citizens International Growth Fund(R); Citizens
Income Fund(R); Citizens Ultra Short Bond Fund(SM); Citizens Money Market
Fund(R)
Supplement dated February 19, 2003 to
Prospectus
dated November 1, 2002
Thomas Coler no longer serves as co-manager
of the Citizens Emerging Growth Fund
and Citizens Small Cap Core Growth Fund.
- --------------------------------------------------------------------------------
CELEBRATING
[LOGO] CITIZENS
FUNDS(R)
o 20 YEARS
800.223.7010
www.citizensfunds.com
Citizens Funds are available through such popular mutual fund supermarkets as
Charles Schwab's Mutual Fund OneSource(R) and Fidelity Investments
FundsNetwork(R). Citizens Funds(R) and Eofund(R) are registered
trademarks of Citizens Advisers, Inc.
Transfer and Dividend Paying Agent:
BISYS, 3435 Stelzer Road, Columbus, OH 43219
(C)2003 Citizens Advisers, Inc.
SEC File No. 811-3626
[RECYCLED LOGO] Printed on recycled paper with soy-based inks. SAR 12/02
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Items 4-8. (Reserved)
Item 9. Controls and Procedures.
Not applicable.
Item 10. Exhibits.
10(a).
Not applicable.
10(b). Certifications.
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.
Date: March 6, 2003 By: /s/ Sophia Collier
-------------------------------------
Sophia Collier
President
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.
Date: March 6, 2003 By: /s/ Sophia Collier
-------------------------------------
Sophia Collier
President
Date: March 6, 2003 By: /s/ Sean P. Driscoll
-------------------------------------
Sean P. Driscoll
Treasurer