-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, B7olu8TftC1abt/I3LLztqZyS3sYSw0mXYyf0UC2aoJX1CvjolHTIZ/SFy7lJkaK 7WkAExzSVeTpDKLG7TJyUA== 0001144204-04-007499.txt : 20040524 0001144204-04-007499.hdr.sgml : 20040524 20040524144941 ACCESSION NUMBER: 0001144204-04-007499 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040524 EFFECTIVENESS DATE: 20040524 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND CENTRAL INDEX KEY: 0001059548 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08749 FILM NUMBER: 04826661 BUSINESS ADDRESS: STREET 1: 5847 SAN FELIPE SUITE 4100 CITY: HOUSTON STATE: TX ZIP: 77057 BUSINESS PHONE: 7132609000 MAIL ADDRESS: STREET 1: 5847 SAN FELIPE SUITE 4100 CITY: HOUSTON STATE: TX ZIP: 77057 FORMER COMPANY: FORMER CONFORMED NAME: CAPSTONE INVESTMENT SERIES TRUST DATE OF NAME CHANGE: 19980414 FORMER COMPANY: FORMER CONFORMED NAME: CAPSTONE INDEXED SERIES TRUST DATE OF NAME CHANGE: 19980409 N-CSRS 1 v03606_ncsrs.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08749 -------------- The Capstone Social Ethics & Religious Values Fund - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 5847 San Felipe, Suite 4100 Houston, TX 77057 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) InCap Service Company, Willow Grove, PA 19090-1904 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 954-217-7999 ------------------ Date of fiscal year end: 09/30/2004 --------------- Date of reporting period: 03/31/2004 -------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO SHAREHOLDERS Dear Shareholder: We are pleased to present the semi-annual report for the Capstone Social Ethics and Religious Values Fund for the six-month period that ended on March 31, 2004. EQUITY MARKET OVERVIEW The equity market continued its advance for the six month period that ended on March 31, 2004. While equity returns for the period were positive, volatility within the period also increased. This is a constant reminder that geopolitical events such as the ongoing turmoil in Iraq along with various terrorist activities can directly impact the equity markets. The improving economy has provided the underlying basis for the market's strength. Company earnings have been showing consistent improvement over the period with reports for the first quarter of 2004 indicating particularly strong growth overall. Weak job creation which has plagued this economic recovery has finally shown some strength with the release of the March payroll employment report. While this is welcome news, it has been mitigated somewhat with higher energy prices and the inevitable threat of rising interest rates which usually follows a period when the Federal Reserve has been very accommodative. For the six month period, the broad-based capitalization weighted Standard & Poor's 1500 Supercomposite Index was up 14.76%. PERFORMANCE The SERV Large Cap Equity Fund returned 12.68% for Class A and 12.86% for Class C for the six-month period. The return for the S&P 500 for the same period was 14.08%. The lower performance relative to the S&P 500 is primarily due to the socially responsible investment policies of the Fund which avoids investing in companies whose primary business is associated with alcohol, caffeinated beverages, tobacco products, meat packing, gambling and pornography ("Restricted Industries"). For the six-month period, the following Restricted Industries in the Index substantially outperformed the S&P 500: Casinos & Gaming 50.22% and Tobacco 27.12%. Compensating for a specific industry or company whose total return deviates dramatically from the overall Index is extremely difficult regardless of its weight within that Index. The impact of the omission of these Restricted Industries on the Fund reduced its return relative to the S&P 500. The SERV Small Cap Equity Fund returned 20.42% for Class A and 20.61% for Class C for the six-month period. The return for the S&P Small Cap 600 for the same period was 21.94%. The lower performance relative to the S&P Small Cap 600 is primarily due to the socially responsible investment policies of the Fund which avoids investing in Restricted Industries. For the six-month period, the Casinos & Gaming industry (a Restricted Industry) of the S&P Small Cap 600 substantially outperformed the Index with a return of 49.48%. Compensating for a specific industry or company whose total returndeviates dramatically from the overall Index is extremely difficult regardless of its weight within that Index. The impact of the omission of these Restricted Industries on the Fund reduced its return relative to the S&P Small Cap 600. The SERV International Fund returned 19.38% for Class A and 19.61% for Class C for the six-month period. The return for the MSCI EAFE Index for the same period was 22.31%. The lower performance relative to the MSCI EAFE Index is primarily due to the socially responsible investment policies of the Fund which avoids investing in Restricted Industries. For the six-month period, tobacco companies (a Restricted Industry) such as British American Tobacco PLC substantially outperformed the Index with a return of 43.91%. Alcohol related companies (another Restricted Industry) such as Kirin Brewery Co. also handily outperformed the Index with a return of 40.04%. Compensating for a specific industry or company whose total return deviates dramatically from the overall Index is extremely difficult regardless of its weight within that Index. The performance of Restricted Industries such as these reduced the return of the Fund relative to the MSCI EAFE Index. FIXED INCOME FUNDS The domestic fixed income markets were characterized by increased volatility, but overall stability, during the six-month period that ended March 31, 2004. U.S. interest rates hardly changed during this period for all maturities, with the bellwether ten-year Treasury note starting and ending at about 3.90% yield to maturity. While still at historically low levels, nominal rates are consistent with an accommodative monetary policy being employed by the Federal Reserve Board. Continued economic growth and the prospect of price inflation returning to the economic landscape may cause the Federal Reserve Board policymakers to raise short-term interest after their long decline over the past few years. If and when the Federal Reserve takes such action, U.S. interest rates will rise and bond prices will decline. The SERV Bond Fund returned 2.68% for Class A and 2.80% for Class C for the six-month period ending March 31, 2004, net of fund expenses of approximately 0.42% and 0.30%, respectively. The return for the Lehman Brothers Government/Credit index for the same period was 3.05%. The best performing sectors during this time were the total returns of bonds issued by utility and industrial companies, and the worst performing sector of the index was U. S. Treasury securities. Lower credit rated issues outperformed higher credit rated securities in the index as investors pushed the yield spreads of higher yielding securities toward lower yielding securities in an effort to increase current income of portfolios. The SERV Short-term Fund returned 1.01% for Class A and 1.11% for Class C for the six-month period ending March 31, 2004, net of fund expenses of approximately 0.44% and 0.31%, respectively. The return for the Merrill Lynch one to three year Treasury index and the customized index for this fund were 1.15% and 1.44%, respectively. We welcome your comments or your questions about this report or any of the services that we provide. We sincerely appreciate your trust and confidence in us and look forward to continuing our relationship with you for many years to come. Sincerely, /s/ Edward L. Jaroski /s/ Dan E. Watson - --------------------- ----------------- Edward L. Jaroski Dan E. Watson President and Chairman of the Board Executive Vice President CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SHORT-TERM BOND FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- PRINCIPAL VALUE ---------- ------------ AGENCY OBLIGATIONS (32.24%) FEDERAL HOME LOAN BANK (23.05%) 2.625%, 02/16/07 $ 750,000 $ 755,744 2.65%, 12/29/06 2,000,000 2,002,490 2.875%, 09/15/06 500,000 510,469 3.00%, 08/15/05 1,000,000 1,020,017 3.95%, 02/14/05 1,000,000 1,023,613 4.125%, 05/13/05 1,000,000 1,031,030 ------------ 6,343,363 ------------ FHLMC - SINGLE FAMILY (9.19%) 2.375%, 4/15/06 + 2,500,000 2,530,195 ------------ TOTAL AGENCY OBLIGATIONS (Cost $8,828,085) 8,873,558 ------------ CORPORATE BONDS (32.36%) BANKS (7.82%) Bank of America Corp., 4.75%, 10/15/06 750,000 797,174 Bank One Corp., 7.625%, 08/01/05 750,000 808,960 MBNA Corp., 6.25%, 01/17/07 500,000 547,640 ------------ 2,153,774 ------------ COMPUTER HARDWARE (2.90%) Hewlett-Packard Co., 7.15%, 06/15/05 750,000 798,047 ------------ DIVERSIFIED FINANCIAL SERVICES (6.94%) General Electric Capital Corp., 6.80%, 11/01/05 1,000,000 1,079,131 Household Finance Corp., 7.20%, 07/15/06 750,000 832,674 ------------ 1,911,805 ------------ INSURANCE (5.92%) AON Corp., 6.70%, 01/15/07 500,000 553,562 International Lease Finance Corp., 5.65%, 08/15/06 1,000,000 1,074,877 ------------ 1,628,439 ------------ MINING (3.90%) Alcoa, Inc., 7.25%, 08/01/05 1,000,000 1,073,415 ------------ MULTIMEDIA (1.96%) Time Warner, Inc., 6.125%, 04/15/06 500,000 538,709 ------------ RETAIL STORES (2.92%) May Department Stores Co., 6.875%, 11/01/05 750,000 803,969 ------------ TOTAL CORPORATE BONDS (Cost $8,824,495) 8,908,158 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SHORT-TERM BOND FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
PRINCIPAL VALUE ----------- ------------ U.S. TREASURY OBLIGATIONS (31.99%) U.S. TREASURY NOTES (31.99%) 1.625%, 04/30/05 $ 500,000 $ 502,403 2.375%, 08/15/06 + 2,000,000 2,029,454 2.625%, 11/15/06 + 3,000,000 3,059,064 6.50%, 08/15/05 + 3,000,000 3,213,048 ------------ TOTAL U.S. TREASURY OBLIGATIONS (Cost $8,699,385) 8,803,969 ------------ SHORT TERM INVESTMENTS (38.80%) Deutsche Bank Tri-Part Agency Repurchase Agreement, 1.06%, 04/01/04 # 10,049,875 10,049,875 Fifth Third Institutional Government Money Market Fund, 0.79% ** 630,517 630,517 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $10,680,392) 10,680,392 ------------ TOTAL INVESTMENTS (Cost $37,032,357) (135.39%) $ 37,266,077 LIABILITIES IN EXCESS OF OTHER ASSETS (-35.39%) (9,740,567) ------------ NET ASSETS (100%) $ 27,525,510 ============ Cost for federal income tax at March 31, 2004 was $37,032,357 and net unrealized appreciation consisted of: Gross unrealized appreciation $ 241,052 Gross unrealized depreciation (7,332) ------------ Net unrealized appreciation $ 233,720 ============
** Rate shown represents the rate at March 31, 2004, is subject to change and resets daily. # Represents investment of cash received as collateral for securities on loan. + Portion or all of this security is on loan. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND BOND FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- PRINCIPAL VALUE ---------- ----------- AGENCY OBLIGATIONS (18.16%) FANNIE MAE (8.35%) 4.375%, 03/15/13 $ 1,000,000 $ 1,018,736 5.00%, 01/15/07 1,000,000 1,076,538 5.50%, 05/02/06 250,000 268,612 6.00%, 05/15/08 1,500,000 1,686,490 6.375%, 06/15/09 1,300,000 1,497,989 ----------- 5,548,365 ----------- FEDERAL FARM CREDIT BANK (1.47%) 4.25%, 06/18/18 1,000,000 979,630 ----------- FEDERAL HOME LOAN BANK (3.99%) 4.50%, 08/14/09 1,500,000 1,586,058 5.125%, 03/06/06 1,000,000 1,064,720 ----------- 2,650,778 ----------- FREDDIE MAC (4.35%) 3.875%, 02/15/05 1,000,000 1,023,122 5.25%, 11/05/12 500,000 518,352 6.375%, 08/01/11 1,250,000 1,350,223 ----------- 2,891,697 ----------- TOTAL AGENCY OBLIGATIONS (Cost $11,347,108) 12,070,470 ----------- CORPORATE BONDS (36.69%) AEROSPACE/DEFENSE (1.58%) Boeing Capital Corp., 6.50%, 02/15/12 640,000 721,377 Lockheed Martin Corp., 7.25%, 05/15/06 150,000 165,294 McDonnell Douglas Corp., 6.875%, 11/01/06 150,000 165,911 ----------- 1,052,582 ----------- AGRICULTURAL BIOTECHNOLOGY (0.27%) Pharmacia Corp., 6.75%, 12/15/27 150,000 176,202 ------------ AIRLINES (0.19%) AMR Corp., 9.00%, 08/01/12 + 150,000 127,875 ------------ AUTO PARTS & EQUIPMENT (1.44%) AutoZone, Inc., 4.375%, 06/01/13 650,000 626,422 AutoZone, Inc., 6.50%, 07/15/08 150,000 166,090 TRW, Inc., 7.625%, 03/15/06 150,000 164,383 ------------ 956,895 ------------ AUTOMOBILE MANUFACTURERS (0.24%) DaimlerChrysler NA Holding Corp., 7.40%, 01/20/05 150,000 156,802 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND BOND FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- PRINCIPAL VALUE ---------- ----------- BANKS (6.99%) ABN Amro Bank, 7.55%, 06/28/06 $ 150,000 $ 169,245 Bank of America Corp., 4.875%, 09/15/12 + 500,000 519,204 Bank of America Corp., 7.80%, 02/15/10 150,000 182,124 Bank One Corp., 7.60%, 05/01/07 150,000 171,195 BankBoston NA, 6.375%, 04/15/08 150,000 169,125 Deutsche Bank Financial, Inc., 6.70%, 12/13/06 150,000 166,527 Dresdner Bank AG, 6.625%, 09/15/05 150,000 160,276 Dresdner Bank AG, 7.25%, 09/15/15 500,000 594,913 J.P. Morgan Chase & Co., 6.75%, 02/01/11 150,000 174,911 KeyCorp, 7.50%, 06/15/06 150,000 166,934 KFW International Finance, 4.75%, 01/24/07 175,000 187,775 National City Corp., 5.75%, 02/01/09 150,000 166,368 Southtrust Bank NA, 6.125%, 01/09/28 150,000 169,880 SunTrust Banks, Inc., 7.375%, 07/01/06 150,000 167,349 Swiss Bank Corp. NY, 7.00%, 10/15/15 650,000 783,065 Wachovia Corp., 6.605%, 10/01/25 150,000 170,544 Wells Fargo & Co., 5.10%, 05/06/18 350,000 361,256 Wells Fargo & Co., 6.875%, 04/01/06 150,000 164,741 ------------ 4,645,432 ------------ BUILDING PRODUCTS (0.32%) Vulcan Materials Co., 6.40%, 02/01/06 200,000 213,352 ------------ CHEMICALS (0.76%) Dow Chemical Co., 6.85%, 08/15/13 150,000 172,347 Lubrizol Corp., 5.875%, 12/01/08 150,000 167,220 Sherwin-Williams Co., 6.85%, 02/01/07 150,000 167,347 ------------ 506,914 ------------ COMPUTER HARDWARE (0.49%) Hewlett-Packard Co., 7.15%, 06/15/05 150,000 159,609 International Business Machines Corp., 5.375%, 02/01/09 150,000 164,465 ------------ 324,074 ------------ CONSUMER PRODUCTS (0.26%) Clorox Co., 6.125%, 02/01/11 150,000 170,713 ------------ COSMETICS & TOILETRIES (0.30%) Procter & Gamble Co., 8.00%, 10/26/29 150,000 201,391 ------------ DIVERSIFIED FINANCIAL SERVICES (9.93%) American Express Co., 5.50%, 09/12/06 150,000 161,962 Banque Paribas NY, 8.35%, 06/15/07 150,000 174,975 Bear Stearns Cos., Inc., 3.50%, 06/27/18 500,000 468,456 Caterpillar Financial Services Corp., 5.55%, 10/15/18 500,000 512,635 Charles Schwab Corp., 8.05%, 03/01/10 150,000 178,515 CIT Group, Inc., 5.30%, 12/15/07 440,000 463,294 Citigroup, Inc., 6.75%, 12/01/05 150,000 162,211 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND BOND FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- PRINCIPAL VALUE ---------- ----------- Countrywide Home Loans, Inc., 5.50%, 08/01/06 $ 150,000 $ 160,818 Credit Suisse First Boston USA, Inc., 6.125%, 11/15/11 150,000 167,550 General Electric Capital Corp., 4.00%, 05/30/18 500,000 491,419 General Motors Acceptance Corp., 6.125%, 02/01/07 + 150,000 161,193 General Motors Corp., 7.20%, 01/15/11 150,000 164,390 Goldman Sachs Group, Inc., 5.70%, 09/01/12 500,000 541,102 Goldman Sachs Group, Inc., 6.875%, 01/15/11 150,000 174,282 Household Finance Corp., 6.375%, 10/15/11 150,000 170,079 Household Finance Corp., 6.75%, 05/15/11 150,000 173,259 John Deere Capital Corp., 7.00%, 03/15/12 500,000 591,903 Lehman Brothers Holdings, Inc., 6.25%, 05/15/06 150,000 163,246 Lehman Brothers, Inc., 6.625%, 02/15/08 150,000 169,117 Merrill Lynch & Co., Inc., 6.15%, 01/26/06 150,000 162,130 Merrill Lynch & Co., Inc., 8.00%, 06/01/07 150,000 173,568 Morgan Stanley, 6.75%, 04/15/11 150,000 173,267 Morgan Stanley Group, Inc., 6.875%, 03/01/07 150,000 169,116 SLM Corp., VRN, 01/31/14 496,000 507,358 Toyota Motor Credit Corp., 5.50%, 12/15/08 150,000 166,496 ----------- 6,602,341 ----------- DIVERSIFIED MANUFACTURING (0.55%) Honeywell International, Inc., 7.50%, 3/01/10 + 150,000 180,343 PPG Industries, Inc., 7.375%, 06/01/16 150,000 182,373 ----------- 362,716 ----------- FOOD & BEVERAGE (2.07%) Albertson's, Inc., 7.45%, 08/01/29 150,000 170,421 Archer-Daniels-Midland Co., 7.125%, 03/01/13 150,000 179,963 Campbell Soup Co., 6.75%, 02/15/11 150,000 175,048 General Mills, Inc., 6.00%, 02/15/12 150,000 165,653 H.J. Heinz Co., 6.00%, 03/15/08 150,000 166,940 Kellogg Co., 6.60%, 04/01/11 150,000 173,570 Kroger Co., 7.00%, 05/01/18 150,000 173,277 Safeway, Inc., 7.00%, 09/15/07 150,000 169,630 ----------- 1,374,502 ----------- FOREST PRODUCTS & PAPER (0.52%) International Paper Co., 7.625%, 01/15/07 150,000 168,959 Weyerhaeuser Co., 7.25%, 07/01/13 150,000 174,893 ----------- 343,852 ----------- HEALTHCARE PRODUCTS (0.48%) Bausch & Lomb, Inc., 6.75%, 12/15/04 150,000 154,340 Baxter International, Inc., 6.625%, 02/15/28 150,000 166,284 ----------- 320,624 ----------- INSURANCE (2.11%) Allstate Corp., 6.75%, 05/15/18 650,000 767,229 Chubb Corp., 7.125%, 12/15/07 250,000 287,903 Hartford Life, Inc., 7.65%, 06/15/27 150,000 185,122 John Hancock Financial Services, Inc., 5.625%, 12/01/08 150,000 164,811 ----------- 1,405,065 ----------- CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND BOND FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- PRINCIPAL VALUE ---------- ----------- MINING (0.27%) Alcoa, Inc., 7.375%, 08/01/10 $ 150,000 $ 180,150 ---------- MULTIMEDIA (0.25%) Time Warner, Inc., 6.875%, 06/15/18 150,000 168,400 ---------- PHARMACEUTICALS (0.74%) Abbott Laboratories, 5.625%, 07/01/06 150,000 161,962 Bristol-Myers Squibb Co., 6.80%, 11/15/26 150,000 173,335 Wyeth, 7.90%, 02/15/05 150,000 158,036 ---------- 493,333 ---------- PIPELINES (0.71%) Consolidated Natural Gas Co., 6.625%, 12/01/08 150,000 169,548 Duke Capital Corp., 7.50%, 10/01/09 + 150,000 173,519 El Paso Corp., 7.00%, 05/15/11 + 150,000 128,625 ---------- 471,692 ---------- REAL ESTATE INVESTMENT TRUST (0.52%) EOP Operating LP, 7.25%, 02/15/18 150,000 176,573 Simon Property Group LP, 6.375%, 11/15/07 150,000 168,607 ---------- 345,180 ---------- RESEARCH & DEVELOPMENT (1.01%) Science Applications International Corp., 6.25%, 07/01/12 + 600,000 671,899 ---------- RETAIL STORES (0.26%) Sears Roebuck Acceptance Corp., 7.00%, 02/01/11 150,000 170,542 ---------- TELECOMMUNICATIONS (1.25%) AT&T Corp., 7.50%, 06/01/06 150,000 164,925 Bellsouth Capital Funding, 7.75%, 02/15/10 150,000 180,362 GTE Florida, Inc., 6.86%, 02/01/28 150,000 164,270 Motorola, Inc., 6.50%, 03/01/08 150,000 165,245 Pacific Bell, 6.25%, 03/01/05 150,000 156,595 ---------- 831,397 ---------- TRANSPORTATION (0.80%) Norfolk Southern Corp., 7.35%, 05/15/07 150,000 170,899 Union Pacific Corp., 6.40%, 02/01/06 150,000 161,303 United Parcel Service, Inc., 8.375%, 04/01/20 150,000 202,667 ---------- 534,869 ---------- CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND BOND FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- PRINCIPAL VALUE ---------- ----------- UTILITIES (2.38%) Carolina Power & Light Co., 5.95%, 03/01/09 $ 150,000 $ 166,207 Constellation Energy Group, Inc., 6.35%, 04/01/07 150,000 165,361 DTE Energy Co., 6.45%, 06/01/06 150,000 162,043 Emerson Electric Co., 5.85%, 03/15/09 150,000 168,042 Penn Electric Co., 6.125%, 04/01/09 125,000 139,108 Public Service Electric & Gas, 7.00%, 09/01/24 150,000 154,461 Southern Union Co., 7.60%, 02/01/24 150,000 171,324 Tennessee Valley Authority, 6.00%, 03/15/13 250,000 283,878 Wisconsin Energy Corp., 6.50%, 04/01/11 150,000 170,038 ----------- 1,580,462 ----------- TOTAL CORPORATE BONDS (Cost $22,453,057) 24,389,256 ----------- FOREIGN BONDS (5.88%) FOREIGN CORPORATE BONDS (2.85%) Barclays Bank Plc, 7.40%, 12/15/09 150,000 180,155 Bell Canada, 9.50%, 10/15/10 150,000 197,682 British Telecommunications Plc, 8.375%, 12/15/10 150,000 185,363 Hydro-Quebec, 6.30%, 05/11/11 175,000 202,218 Inter-American Development Bank, 6.125%, 03/08/06 175,000 189,639 International Bank for Reconstruction & Development, 7.00%, 01/27/05 175,000 183,279 Landesbank Baden-Wuerttemberg Girozentrale, 7.625%, 02/01/23 175,000 222,408 National Westminster Bank Plc, 7.375%, 10/01/09 150,000 179,613 Norsk Hydro ASA, 6.70%, 01/15/18 150,000 174,521 Telefonica Europe BV, 7.75%, 09/15/10 + 150,000 181,151 ----------- 1,896,029 ----------- FOREIGN GOVERNMENT REGIONAL (3.03%) Canadian Government Bond, 6.375%, 11/30/04 175,000 181,012 Finland Government International Bond, 7.875%, 07/28/04 175,000 178,817 Italy Government International Bond, 7.25%, 02/07/05 175,000 183,735 Province of British Columbia, 5.375%, 10/29/08 175,000 192,603 Province of Manitoba, 4.25%, 11/20/06 175,000 184,355 Province of New Brunswick, 7.625%, 06/29/04 175,000 177,642 Province of Nova Scotia, 7.25%, 07/27/13 100,000 123,828 Province of Ontario, 5.50%, 10/01/08 175,000 193,393 Province of Quebec, 6.50%, 01/17/06 175,000 188,504 Province of Saskatchewan, 8.00%, 02/01/13 175,000 223,603 Spain Government International Bond, 7.00%, 07/19/05 175,000 187,313 ----------- 2,014,805 ------------ TOTAL FOREIGN BONDS (Cost $3,520,521) 3,910,834 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND BOND FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
PRINCIPAL VALUE ----------- ------------ U.S. TREASURY OBLIGATIONS (36.38%) TREASURY BONDS (18.86%) 3.625%, 05/15/13 + $ 500,000 $ 496,797 5.75%, 08/15/10 3,500,000 4,018,438 6.25%, 08/15/23 + 2,250,000 2,675,302 6.75%, 08/15/26 + 1,000,000 1,264,375 7.50%, 11/15/16 1,000,000 1,318,359 7.875%, 02/15/21 2,000,000 2,766,172 ------------- 12,539,443 ------------- TREASURY NOTES (17.52%) 2.625%, 05/15/08 + 2,000,000 2,012,188 3.50%, 11/15/06 + 4,000,000 4,169,220 4.25%, 11/15/13 1,000,000 1,034,414 4.75%, 11/15/08 + 1,600,000 1,745,062 5.625%, 02/15/06 + 1,000,000 1,076,172 6.50%, 08/15/05 + 1,500,000 1,606,524 ------------- 11,643,580 ------------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $23,022,993) 24,183,023 ------------- SHORT TERM INVESTMENTS (26.64%) Deutsche Bank Tri-Part Agency Repurchase Agreement, 1.06%, 04/01/04 # 16,628,865 16,628,865 Fifth Third Institutional Government Money Market Fund, 0.79% ** 1,075,938 1,075,938 ------------- TOTAL SHORT TERM INVESTMENTS (Cost $17,704,803) 17,704,803 ------------- TOTAL INVESTMENTS (Cost $78,048,482) (123.75%) $ 82,258,386 LIABILITIES IN EXCESS OF OTHER ASSETS (-23.75%) (15,786,390) ------------- NET ASSETS (100%) $ 66,471,996 ============= Cost for federal income tax at March 31, 2004 was $78,048,482 and net unrealized appreciation consisted of: Gross unrealized appreciation $ 4,317,599 Gross unrealized depreciation (107,695) ------------- Net unrealized appreciation $ 4,209,904 =============
** Rate shown represents the rate at March 31, 2004, is subject to change and resets daily. # Represents investment of cash received as collateral for securities on loan. + Portion or all of this security is on loan. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ COMMON STOCK (99.36%) ADVERTISING (0.23%) Interpublic Group Cos., Inc. 3,084 $ 47,432 Omnicom Group 2,120 170,130 ------------ 217,562 ------------ AEROSPACE/DEFENSE (1.61%) Boeing Co. 7,849 322,358 General Dynamics Corp. 2,030 181,340 Goodrich Corp. 921 25,852 Lockheed Martin Corp. 4,226 192,875 Northrop Grumman Corp. 1,798 176,959 Raytheon Co. 3,743 117,306 Rockwell Collins, Inc. 1,506 47,605 United Technologies Corp. 4,980 429,774 ------------ 1,494,069 ------------ AGRICULTURE (0.09%) Monsanto Co. 2,255 82,691 ------------ AIRLINES (0.12%) Delta Air Lines, Inc. + 2,260 17,899 Southwest Airlines Co. 6,559 93,203 ------------ 111,102 ------------ APPAREL (0.41%) Jones Apparel Group, Inc. 1,180 42,657 Liz Claiborne, Inc. 1,000 36,690 Nike, Inc. 2,742 213,520 Reebok International Ltd. 550 22,742 VF Corp. 1,288 60,150 ------------ 375,759 ------------ APPLIANCES (0.10%) Maytag Corp. 690 21,783 Whirlpool Corp. 994 68,457 ------------ 90,240 ------------ AUTO PARTS & EQUIPMENT (0.21%) Cooper Tire & Rubber Co. 170 3,426 Dana Corp. 945 18,768 Delphi Corp. 2,654 26,434 Goodyear Tire & Rubber Co. + 910 7,771 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Johnson Controls, Inc. 2,208 $ 130,603 Visteon Corp. 918 8,785 ------------ 195,787 ------------ AUTOMOBILE MANUFACTURERS (0.62%) Ford Motor Co. 14,266 193,590 General Motors Corp. 5,214 245,579 Navistar International Corp. * 710 32,554 Paccar, Inc. 1,881 105,787 ------------ 577,510 ------------ BANKS (8.27%) AmSouth Bancorp 1,820 42,788 Bank of America Corp. 13,858 1,122,221 Bank of New York Co., Inc. 7,258 228,627 Bank One Corp. 11,024 601,028 BB&T Corp. 5,550 195,915 Charter One Financial, Inc. 3,629 128,321 Comerica, Inc. 2,480 134,714 Fifth Third Bancorp 5,912 327,347 First Tennessee National Corp. * 1,390 66,303 FleetBoston Financial Corp. 10,072 452,233 Golden West Financial Corp. 1,780 199,271 Huntington Bancshares, Inc. 1,162 25,785 Keycorp 3,520 106,621 M & T Bank Corp. 1,370 123,095 Marshall & Ilsley Corp. 2,140 80,913 Mellon Financial Corp. 3,840 120,154 National City Corp. 5,464 194,409 North Fork Bancorporation, Inc. 1,610 68,135 Northern Trust Corp. 2,590 120,668 PNC Financial Services Group, Inc. 3,305 183,163 Regions Financial Corp. 2,260 82,535 SouthTrust Corp. 3,010 99,812 State Street Corp. 3,540 184,540 SunTrust Banks, Inc. 3,305 230,392 Synovus Financial Corp. 2,425 59,291 Union Planters Corp. 1,775 52,984 U.S. Bancorp 17,306 478,511 Wachovia Corp. 12,678 595,866 Washington Mutual, Inc. 8,946 382,084 Wells Fargo & Co. 16,044 909,213 Zions Bancorp 1,370 78,364 ------------ 7,675,303 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ BIOTECHNOLOGY (1.03%) Amgen, Inc. * 12,229 $ 711,361 Chiron Corp. * 2,110 92,861 Genzyme Corp. * 2,420 113,837 Millipore Corp. * 800 41,104 ------------ 959,163 ------------ BUILDING MATERIALS (0.30%) American Standard Cos., Inc. * 770 87,588 Masco Corp. 3,990 121,416 Vulcan Materials Co. 1,360 64,518 ------------ 273,522 ------------ CHEMICALS (1.65%) Air Products & Chemicals, Inc. 2,398 120,188 Ashland, Inc. 715 33,240 Dow Chemical Co. 8,616 347,052 Du Pont EI de Nemours & Co. 9,574 404,214 Eastman Chemical Co. 910 38,839 Ecolab, Inc. 2,692 76,803 Engelhard Corp. 994 29,711 Great Lakes Chemical Corp. 190 4,532 Hercules, Inc. * 393 4,512 International Flavors & Fragrances, Inc. 1,436 50,978 PPG Industries, Inc. 2,025 118,057 Praxair, Inc. 3,422 127,025 Rohm & Haas Co. 2,098 83,584 Sherwin-Williams Co. 1,156 44,425 Sigma-Aldrich Corp. 838 46,375 ------------ 1,529,535 ------------ COMMERCIAL SERVICES (1.01%) Apollo Group, Inc. * 1,820 156,720 Cendant Corp. 8,596 209,656 Convergys Corp. * 1,170 17,784 Deluxe Corp. 927 37,173 Equifax, Inc. 1,340 34,599 H&R Block, Inc. 1,820 92,875 McKesson Corp. 2,819 84,824 Moody's Corp. 1,786 126,449 Paychex, Inc. 3,952 140,691 R.R. Donnelley & Sons Co. 1,238 37,450 ------------ 938,221 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ COMPUTER HARDWARE (4.03%) Apple Computer, Inc. * 3,588 $ 97,055 Dell Computer Corp. * 23,722 797,534 EMC Corp. * 20,908 284,558 ESC Seagate Technology * 1,255 -- Gateway, Inc. * 1,720 9,082 Hewlett-Packard Co. 27,759 634,016 International Business Machines Corp. 15,836 1,454,378 Lexmark International, Inc. * 1,500 138,000 NCR Corp. * 1,350 59,481 Network Appliance, Inc. * 3,370 72,287 Sun Microsystems, Inc. * 19,194 79,846 Veritas Software Corp. * 4,179 112,457 ------------ 3,738,694 ------------ COMPUTER SERVICES (0.46%) Computer Sciences Corp. * + 2,048 82,596 Electronic Data Systems Corp. 4,370 84,560 Sungard Data Systems, Inc. * 2,890 79,186 Symantec Corp. * 3,130 144,919 Unisys Corp. * 2,430 34,700 ------------ 425,961 ------------ COMPUTER SOFTWARE (4.92%) Adobe Systems, Inc. 2,630 103,701 Autodesk, Inc. 1,300 41,106 Automatic Data Processing 6,230 261,660 BMC Software, Inc. * 2,010 39,296 Citrix Systems, Inc. * 1,520 32,862 Computer Associates International, Inc. 5,515 148,133 Compuware Corp. * 1,730 12,888 Electronic Arts, Inc. * 3,130 168,895 First Data Corp. 8,437 355,704 Fiserv, Inc. * 2,185 78,157 IMS Health, Inc. 2,312 53,777 Intuit, Inc. * 2,200 98,736 Mercury Interactive Corp. * 1,110 49,728 Microsoft Corp. 97,288 2,429,281 Novell, Inc. * 2,949 33,560 Oracle Corp. * 45,402 545,278 Parametric Technology Corp. * 1,200 5,424 Peoplesoft, Inc. * 3,480 63,345 Siebel Systems, Inc. * + 3,780 43,508 ------------ 4,566,039 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ CONSUMER PRODUCTS (0.16%) American Greetings * + 550 $ 12,523 Clorox Co. 2,602 127,264 Tupperware Corp. 581 10,348 ------------ 150,135 ------------ CONTAINERS (0.15%) Ball Corp. 660 44,735 Bemis Co. 1,490 38,740 Pactiv Corp. * 818 18,201 Sealed Air Corp. * 795 39,535 ------------ 141,211 ------------ COSMETICS & TOILETRIES (2.84%) Alberto-Culver Co. 1,620 71,069 Avon Products, Inc. 2,628 199,386 Colgate-Palmolive Co. 5,658 311,756 Gillette Co. 10,048 392,877 Kimberly-Clark Corp. 5,906 372,669 Procter & Gamble Co. 12,262 1,286,039 ------------ 2,633,796 ------------ DISTRIBUTION/WHOLESALE (0.14%) Genuine Parts Co. 1,840 60,205 W.W. Grainger, Inc. 1,440 69,120 ------------ 129,325 ------------ DIVERSIFIED FINANCIAL SERVICES (8.61%) American Express Co. 12,288 637,133 Bear Stearns Cos., Inc. 977 85,663 Capital One Financial Corp. 2,220 167,455 Charles Schwab Corp. 9,485 110,121 Citigroup, Inc. 47,096 2,434,863 Countrywide Financial Corp. 1,683 161,400 Fannie Mae 9,021 670,711 Federated Investors, Inc. 690 21,687 Franklin Resources, Inc. 2,560 142,541 Freddie Mac 6,448 380,819 Goldman Sachs Group, Inc. 4,330 451,835 Janus Capital Group, Inc. 1,160 19,001 J.P. Morgan Chase & Co. 19,075 800,196 Lehman Brothers Holdings, Inc. 2,580 213,805 MBNA Corp. 11,327 312,965 Merrill Lynch & Co. 8,884 529,131 Morgan Stanley 10,204 584,689 Providian Financial Corp. * 1,622 21,248 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ SLM Corp. 4,100 $ 171,585 T. Rowe Price Group, Inc. 1,370 73,747 ------------ 7,990,595 ------------ DIVERSIFIED MACHINERY (0.68%) Caterpillar, Inc. 3,602 284,810 Cummins, Inc. 500 29,225 Deere & Co. 2,578 178,681 Dover Corp. 2,160 83,743 Rockwell Automation, Inc. 1,676 58,107 ------------ 634,566 ------------ DIVERSIFIED MANUFACTURING (5.54%) 3M Co. 7,744 634,001 Cooper Industries Ltd. 1,144 65,414 Crane Co. 440 14,520 Danaher Corp. 1,570 146,591 Eaton Corp. 2,030 114,066 General Electric Co. 90,178 2,752,233 Honeywell International, Inc. 7,928 268,363 Illinois Tool Works, Inc. 3,446 273,027 Ingersoll-Rand Co. 1,983 134,150 ITT Industries, Inc. 1,068 81,520 Pall Corp. 909 20,625 Plum Creek Timber Co., Inc. 1,270 41,249 Textron, Inc. 1,520 80,788 Tyco International Ltd. 17,934 513,809 ------------ 5,140,356 ------------ E-COMMERCE SERVICES (0.49%) eBay, Inc. * 6,180 428,459 Monster Worldwide, Inc. * 1,120 29,344 ------------ 457,803 ------------ ELECTRIC PRODUCTS (0.36%) Emerson Electric Co. 4,616 276,591 Molex, Inc. 1,902 57,802 ------------ 334,393 ------------ ELECTRONIC COMPONENTS (0.51%) Agilent Technologies, Inc. * 4,430 140,121 American Power Conversion 1,560 35,896 Jabil Circuit, Inc. * 1,770 52,091 Parker Hannifin Corp. 1,391 78,592 Power-One, Inc. * 350 3,871 Sanmina-SCI Corp. * 3,540 38,975 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Solectron Corp. * 3,140 $ 17,364 Symbol Technologies, Inc. 1,985 27,393 Tektronic, Inc. 820 26,822 Thermo Electron Corp. * 1,552 43,891 Thomas & Betts Corp. 205 4,473 ------------ 469,489 ------------ ENGINEERING & CONSTRUCTION (0.04%) Fluor Corp. 950 36,756 ------------ FOOD (2.18%) Albertson's, Inc. 3,772 83,550 Archer-Daniels-Midland Co. 5,711 96,345 Campbell Soup Co. 5,044 137,550 General Mills, Inc. 5,108 238,441 H.J. Heinz Co. 5,277 196,779 Hershey Foods Corp. 2,480 205,468 Kellogg Co. 5,310 208,364 Kroger Co. * 6,044 100,572 McCormick & Co. 2,110 70,727 Safeway, Inc. * 4,430 91,169 Supervalu, Inc. 1,780 54,361 Sysco Corp. 7,666 299,357 Wm. Wrigley Jr. Co. 3,880 229,386 Winn-Dixie Stores, Inc. + 1,150 8,740 ------------ 2,020,809 ------------ FOREST & PAPER PRODUCTS (0.60%) Boise Cascade Corp. 625 21,656 Georgia-Pacific Corp. 2,196 73,983 International Paper Co. 4,591 194,016 Louisiana-Pacific Corp. 610 15,738 MeadWestvaco Corp. 1,512 42,774 Temple-Inland, Inc. 700 44,338 Weyerhaeuser Co. 2,464 161,392 ------------ 553,897 ------------ HEALTHCARE PRODUCTS (4.08%) Bausch & Lomb, Inc. 875 52,474 Baxter International, Inc. 5,836 180,274 Becton Dickinson & Co. 2,960 143,501 Biogen Idec, Inc. * 3,188 177,253 Biomet, Inc. 2,812 107,868 Boston Scientific Corp. * 7,784 329,886 C.R. Bard, Inc. 690 67,372 Guidant Corp. 3,186 201,897 Johnson & Johnson 28,359 1,438,368 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Medtronic, Inc. 11,532 $ 550,653 St. Jude Medical, Inc. * 1,904 137,278 Stryker Corp. 2,320 205,390 Zimmer Holdings, Inc.* 2,580 190,352 ------------ 3,782,566 ------------ HEALTHCARE SERVICES (0.48%) Anthem, Inc. * + 1,700 154,088 Express Scripts, Inc. * 1,090 81,303 Health Management Associates, Inc. 2,330 54,079 Manor Care, Inc. 1,235 43,583 Quest Diagnostics 1,370 113,477 ------------ 446,530 ------------ HOME BUILDERS (0.21%) Centex Corp. 1,280 69,197 KB HOME 610 49,288 Pulte Homes, Inc. 1,380 76,728 ------------ 195,213 ------------ HOME FURNISHINGS (0.10%) Leggett & Platt, Inc. 1,430 33,905 Newell Rubbermaid 2,588 60,042 ------------ 93,947 ------------ HOTELS & MOTELS (0.26%) Hilton Hotels Corp. 1,880 30,550 Marriott International, Inc. 2,713 115,438 Starwood Hotels & Resorts Worldwide, Inc. 2,350 95,175 ------------ 241,163 ------------ HUMAN RESOURCES (0.04%) Robert Half International, Inc. 1,480 34,958 ------------ INSTRUMENTS/CONTROLS (0.12%) Applera Corp - Applied Biosystems Group 1,960 38,769 PerkinElmer, Inc. 800 16,552 Waters Corp. * 1,300 53,092 ------------ 108,413 ------------ INSURANCE (5.27%) ACE Ltd. 2,490 106,223 Aflac, Inc. 5,360 215,150 Allstate Corp. 6,536 297,127 AMBAC Financial Group, Inc. 1,140 84,109 American International Group 23,829 1,700,199 AON Corp. 2,384 66,537 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Chubb Corp. 1,980 $ 137,689 Cincinnati Financial Corp. 1,640 71,258 Hartford Financial Services Group, Inc. 3,008 191,610 Jefferson-Pilot Corp. 2,378 130,814 John Hancock Financial Services, Inc. 2,830 123,643 Lincoln National Corp. 2,138 101,170 Marsh & McLennan Cos., Inc. 5,516 255,391 MBIA, Inc. 1,540 96,558 Metlife, Inc. 7,110 253,685 MGIC Investment Corp. 1,000 64,230 Principal Financial Group 2,980 106,177 Progressive Corp. 2,080 182,208 Prudential Financial, Inc. 5,520 247,186 Safeco Corp. + 1,309 56,510 St. Paul Cos 1,980 79,220 Torchmark Corp. 1,550 83,375 Travelers Property Casualty Corp. 6,262 108,145 UnumProvident Corp. 2,140 31,308 XL Capital Ltd. 1,360 103,414 ------------ 4,892,936 ------------ LEISURE & RECREATIONAL PRODUCTS (0.16%) Brunswick Corp. 1,254 51,201 Hasbro, Inc. 1,445 31,429 Mattel, Inc. 3,671 67,693 ------------ 150,323 ------------ LINEN SUPPLY (0.09%) Cintas Corp. 1,820 79,152 ------------ MEDIA (2.87%) AOL Time Warner, Inc. * 40,140 676,760 Clear Channel Communications, Inc. 6,250 264,687 Comcast Corp. * 20,472 588,365 Dow Jones & Co., Inc. 1,255 60,127 Gannett Co., Inc. 3,344 294,740 Knight-Ridder, Inc. 1,539 112,732 McGraw-Hill Cos., Inc. 2,610 198,725 Meredith Corp. 1,198 60,571 New York Times Co. 2,224 98,301 Tribune Co. 3,867 195,051 Univision Communications, Inc. * 3,390 111,904 ------------ 2,661,963 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ METAL FABRICATION (0.01%) Worthington Industries 480 $ 9,202 ------------ MINING (0.68%) Alcoa, Inc. 8,208 284,735 Freeport-McMoRan Copper & Gold, Inc. 1,980 77,398 Newmont Mining Corp. 4,138 192,955 Phelps Dodge Corp. * 945 77,169 ------------ 632,257 ------------ MOTORCYCLE MANUFACTURER (0.20%) Harley-Davidson, Inc. 3,480 185,623 ------------ OFFICE AUTOMATION & EQUIPMENT (0.37%) Avery Dennison Corp. 1,371 85,290 Pitney Bowes, Inc. 3,884 165,497 Xerox Corp. * + 6,462 94,151 ------------ 344,938 ------------ OIL & GAS (6.17%) Amerada Hess Corp. 978 63,844 Anadarko Petroleum Corp. 2,163 112,173 Apache Corp. 3,144 135,726 Baker Hughes, Inc. 2,700 98,496 BJ Services Co. * 1,340 57,982 Burlington Resources, Inc. 1,747 111,162 ChevronTexaco Corp. 10,179 893,513 ConocoPhillips 6,834 477,082 Devon Energy Corp. 2,070 120,371 EOG Resources, Inc. 810 37,171 Exxon Mobil Corp. 59,372 2,469,281 Halliburton Co. 3,598 109,343 Kerr-McGee Corp. 1,170 60,255 Marathon Oil Corp. 2,886 97,172 Nabors Industries Ltd. * 1,330 60,847 Nicor, Inc. 780 27,479 Noble Corp. * 870 33,425 Occidental Petroleum Corp. 3,333 153,485 Peoples Energy Corp. 660 29,469 Rowan Cos., Inc. * 170 3,585 Schlumberger Ltd. 5,960 380,546 Sunoco, Inc. 990 61,756 Transocean, Inc. * 2,317 64,621 Unocal Corp. 1,842 68,670 ------------ 5,727,454 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ PHARMACEUTICALS (7.36%) Abbott Laboratories 15,086 $ 620,035 Allergan, Inc. 1,560 131,290 AmerisourceBergan Corp. 1,310 71,631 Bristol-Myers Squibb Co. 18,638 451,599 Cardinal Health, Inc. 4,640 319,696 Eli Lilly & Co. 10,645 712,150 Forest Laboratories, Inc. * 3,580 256,400 King Pharmaceuticals, Inc. * 2,056 34,623 Medco Health Solutions, Inc. * 2,811 95,574 Medimmune, Inc. * 2,380 54,930 Merck & Co., Inc. 20,810 919,594 Pfizer, Inc. 69,335 2,430,192 Schering-Plough Corp. 12,590 204,210 Watson Pharmaceuticals, Inc. * 1,260 53,915 Wyeth 12,510 469,750 ------------ 6,825,589 ------------ PHOTOGRAPHY EQUIPMENT (0.10%) Eastman Kodak Co. 3,414 89,344 ------------ PIPELINES (0.20%) Dynegy, Inc. + 2,570 10,177 El Paso Corp. 3,821 27,167 Kinder Morgan, Inc. 1,820 114,696 Williams Cos., Inc. 3,280 31,390 ------------ 183,430 ------------ REAL ESTATE INVESTMENT TRUSTS (0.40%) Apartment Investment & Management Co. 1,180 36,686 Equity Office Properties Trust 3,110 89,848 Equity Residential Properties Trust 2,140 63,879 ProLogis 1,190 42,685 Simon Property Group, Inc. 2,330 136,165 ------------ 369,263 ------------ RETAIL STORES (6.95%) Autonation, Inc. * 1,100 18,755 Autozone, Inc. * 1,027 88,291 Bed Bath & Beyond, Inc. * 3,030 126,533 Best Buy Co., Inc. 3,215 166,280 Big Lots, Inc. * 450 6,525 Circuit City Stores, Inc. 1,190 13,447 Costco Wholesale Corp. * 4,430 166,391 CVS Corp. 3,994 140,988 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Dillard's, Inc. 370 $ 7,089 Dollar General Corp. 2,761 53,011 Family Dollar Stores 1,890 67,945 Federated Department Stores 2,057 111,181 Gap, Inc. 7,695 168,674 Home Depot, Inc. 20,969 783,402 J.C. Penney Co., Inc. Holding Co. 2,647 92,063 Kohl's Corp. * 3,370 162,872 Limited Brands 3,770 75,400 Lowe's Cos., Inc. 7,606 426,925 May Department Stores Co. 3,038 105,054 Nordstrom, Inc. 1,390 55,461 Office Depot, Inc. * 2,030 38,205 RadioShack Corp. 1,740 57,698 Sears Roebuck and Co. 2,704 116,164 Staples, Inc. 4,290 108,923 Target Corp. 8,818 397,163 Tiffany & Co. 1,630 62,217 TJX Cos., Inc. 4,080 100,205 Toys R US, Inc. * 1,181 19,841 Walgreen Co. 40,098 2,393,450 Wal-Mart Stores, Inc. 9,756 321,460 ------------ 6,451,613 ------------ SEMICONDUCTORS (3.89%) Advanced Micro Devices, Inc. * + 2,698 43,789 Altera Corp. * 3,200 65,440 Analog Devices, Inc. 3,600 172,836 Applied Materials, Inc. * 14,450 308,941 Applied Micro Circuits Corp. * 1,380 7,935 Broadcom Corp. * 2,900 113,593 Intel Corp. 58,464 1,590,221 Kla-Tencor Corp. * 1,920 96,672 Linear Technology Corp. 3,070 113,651 LSI Logic Corp. * 1,820 16,999 Maxim Integrated Products 3,290 154,926 Micron Technology, Inc. * 4,866 81,311 National Semiconductor Corp. * 1,810 80,418 Novellus Systems, Inc. * 1,500 47,685 Nvidia Corp. * 1,370 36,291 PMC - Sierra, Inc. * 1,450 24,607 QLogic Corp. * 1,000 33,010 Teradyne, Inc. * 1,650 39,319 Texas Instruments, Inc. 15,658 457,527 Xilinx, Inc. 3,260 123,880 ------------ 3,609,051 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ STEEL PRODUCERS (0.11%) Allegheny Technologies, Inc. 446 $ 5,397 Nucor Corp. 971 59,697 United States Steel Corp. 1,023 38,127 ------------ 103,221 ------------ TELECOMMUNICATIONS (6.61%) ADC Telecommunications, Inc. * + 3,790 10,991 Alltel Corp. 4,048 201,955 Andrew Corp. * 1,122 19,635 AT&T Corp. 6,618 129,514 AT&T Wireless Services, Inc. * 23,274 316,759 Avaya, Inc. * 3,654 58,025 BellSouth Corp. 17,296 478,926 CenturyTel, Inc. 1,580 43,434 CIENA Corp. * 1,870 9,294 Cisco Systems, Inc. * 61,938 1,456,782 Citizens Communications Co. * 1,020 13,199 Comverse Technology, Inc. * 1,540 27,935 Corning, Inc. * 10,659 119,168 JDS Uniphase Corp. * 6,810 27,717 Lucent Technologies, Inc. * + 27,951 114,879 Motorola, Inc. 20,308 357,421 Nextel Communications, Inc. * 9,880 244,332 Qualcomm, Inc. 7,330 486,859 Qwest Communications International * 9,996 43,083 SBC Communications, Inc. 30,205 741,231 Scientific-Atlanta, Inc. 1,430 46,246 Sprint Corp.-FON Group 7,580 69,736 Sprint Corp.-PCS Group * 7,992 147,292 Tellabs, Inc. * 2,172 18,744 Verizon Communications, Inc. 26,061 952,269 ------------ 6,135,426 ------------ TOOLS (0.13%) Black & Decker Corp. 1,011 57,566 Snap-On, Inc. 580 18,757 Stanley Works 1,130 48,229 ------------ 124,552 ------------ TRANSPORTATION (1.44%) Burlington Northern Santa Fe Corp. 2,994 94,311 CSX Corp. 1,865 56,491 FedEx Corp. 2,846 213,905 Norfolk Southern Corp. 2,506 55,357 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Union Pacific Corp. 2,863 $ 171,265 United Parcel Service, Inc. 10,590 739,606 ------------ 1,330,935 ------------ TRAVEL SERVICES (0.04%) Sabre Holdings Corp. 1,624 40,291 ------------ TRUCKING & LEASING (0.03%) Ryder System, Inc. 620 24,013 ------------ UTILITIES (3.42%) AES Corp. * 3,060 26,102 Allegheny Energy, Inc. * 1,800 24,678 Ameren Corp. 2,808 129,421 American Electric Power Co., Inc. 4,144 136,420 Calpine Corp. * + 1,780 8,313 Centerpoint Energy, Inc. 2,430 27,775 Cinergy Corp. 2,464 100,753 CMS Energy Corp. * + 630 5,639 Consolidated Edison, Inc. 3,049 134,461 Constellation Energy Group, Inc. 3,549 141,783 Dominion Resources, Inc. 3,784 243,311 DTE Energy Co. 2,159 88,843 Duke Energy Corp. 7,266 164,212 Edison International 2,116 51,398 Entergy Corp. 3,125 185,937 Exelon Corp. 4,074 280,576 FirstEnergy Corp. 3,685 144,010 FPL Group, Inc. 2,759 184,439 KeySpan Corp. 1,990 76,058 NiSource, Inc. 1,300 27,625 PG&E Corp. * 3,849 111,505 Pinnacle West Capital Corp. 1,420 55,877 PPL Corp. 2,315 105,564 Progress Energy, Inc. 3,274 154,140 Public Service Enterprise Group, Inc. 3,117 146,437 Sempra Energy 2,085 66,303 Southern Co. 7,050 215,025 TECO Energy, Inc. + 710 10,387 TXU Corp. 2,881 82,569 Xcel Energy, Inc. 2,250 40,072 ------------ 3,169,633 ------------ WASTE DISPOSAL (0.21%) Allied Waste Industries, Inc. * 1,530 20,364 Waste Management, Inc. 5,623 169,702 ------------ 190,066 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND LARGE CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
SHARES VALUE ------ ------------ TOTAL COMMON STOCK (COST $96,326,284) $ 92,177,354 ------------ SHORT TERM INVESTMENTS (1.03%) Deutsche Bank Tri-Part Agency Repurchase Agreement, 1.06%, 04/01/04 # 651,202 651,202 Fifth Third Institutional Government Money Market Fund, 0.79% ** 302,848 302,848 ------------ TOTAL SHORT TERM INVESTMENTS (COST $954,050) 954,050 ------------ TOTAL INVESTMENTS (COST $97,280,334) (100.39%) $ 93,131,404 LIABILITIES IN EXCESS OF OTHER ASSETS (-0.39%) (357,490) ------------ NET ASSETS (100%) $ 92,773,914 ============ Cost for federal income tax at March 31, 2004 was $97,969,861 and net unrealized depreciation consisted of: Gross unrealized appreciation $ 9,822,648 Gross unrealized depreciation (14,661,105) ------------ Net unrealized appreciation $ (4,838,457) ============
* Non-income producing investment ** Rate shown represents the rate at March 31, 2004, is subject to change and resets daily. # Represents investment of cash received as collateral for securities on loan. + Portion or all of this security is on loan. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ COMMON STOCK (97.48%) ADVERTISING (0.22%) Advo, Inc. 2,283 $ 73,542 ------------ AEROSPACE/DEFENSE (1.98%) AAR Corp. * 2,132 26,181 Alliant Techsystems, Inc. * 2,947 160,317 Armor Holdings, Inc. * 2,150 71,165 Curtiss-Wright Corp. 1,800 84,366 DRS Technologies, Inc. * 1,990 55,680 EDO Corp. 1,540 37,083 Esterline Technologies Corp. * 1,640 40,754 GenCorp, Inc. 2,560 27,725 Kaman Corp. 1,253 18,707 Moog, Inc. * 2,085 71,140 Teledyne Technologies, Inc. * 2,250 42,075 Triumph Group, Inc. * 1,270 41,974 ------------ 677,167 ------------ AGRICULTURE (0.20%) Delta & Pine Land Co. 2,726 68,014 ------------ AIRLINES (0.42%) Atlantic Coast Airlines Holdings, Inc. * 2,810 20,429 Frontier Airlines, Inc. * 2,350 24,487 Mesa Air Group, Inc. * + 1,920 15,859 Skywest, Inc. 4,230 81,385 ------------ 142,160 ------------ APPAREL (2.02%) Gymboree Corp. * 2,010 33,708 Haggar Corp. 640 12,800 Kellwood Co. 2,160 84,780 K-Swiss, Inc. 2,660 65,090 Oshkosh B'Gosh, Inc. 1,010 23,634 Oxford Industries, Inc. 1,320 60,971 Phillips-Van Heusen 2,180 40,330 Quiksilver, Inc. * 4,020 87,837 Russell Corp. 2,310 42,181 Stride Rite Corp. 1,940 20,583 Urban Outfitters, Inc. * 3,000 144,180 Wolverine World Wide, Inc. 3,018 72,824 ------------ 688,918 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ APPLIANCES (0.07%) Applica, Inc. * 1,300 $ 14,612 Fedders Corp. 390 2,227 Salton, Inc. * + 810 7,590 ------------ 24,429 ------------ AUTO PARTS & EQUIPMENT (0.20%) Midas, Inc. * 1,230 23,923 Standard Motor Products, Inc. 1,746 27,377 Tower Automotive, Inc. * 3,200 16,128 ------------ 67,428 ------------ AUTOMOBILE MANUFACTURERS (0.62%) Oshkosh Truck Corp. 2,730 152,061 Wabash National Corp. * 2,450 57,820 ------------ 209,881 ------------ BANKS (6.09%) Boston Private Financial Holdings, Inc. 1,910 53,480 Brookline Bancorp, Inc. 2,840 45,298 Chittenden Corp. 2,735 90,255 Community First Bankshares, Inc. 2,660 85,492 East-West Bancorp, Inc. 1,990 111,440 First Bancorp Puerto Rico 3,135 130,416 First Midwest Bancorp, Inc. 3,476 118,671 First Republic Bank 1,320 50,899 Fremont General Corp. 5,512 168,667 GBC Bancorp 2,640 43,032 Hudson United Bancorp 3,457 131,539 Irwin Financial Corp. 2,080 56,118 Provident Bankshares Corp. 1,936 60,752 Republic Bancorp 2,937 41,294 Riggs National Corp. 1,906 32,802 South Financial Group, Inc. 4,330 128,125 Southwest Bancorp of Texas, Inc. 2,640 99,607 Sterling Bancshares, Inc. 2,250 30,128 Susquehanna Bancshares, Inc. 2,755 70,611 Trustco Bank Corp. NY 3,344 45,010 UCBH Holdings, Inc. 3,360 134,534 Umpqua Holdings Corp. 1,720 34,727 United Bankshares, Inc. 3,210 97,905 Whitney Holding Corp. 3,277 136,782 Wintrust Financial Corp. 1,650 80,239 ------------ 2,077,823 ------------ BATTERY SYSTEM (0.18%) Wilson Greatbatch Technologies * 1,690 61,313 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ BIOTECHNOLOGY (0.65%) Arqule, Inc. * 980 $ 5,821 Cryolife, Inc. * + 1,105 6,575 Enzo Biochem, Inc. * 2,158 36,319 Integra LifeSciences Holdings Corp. * 2,030 62,159 Osteotech, Inc. * 830 5,353 Possis Medical, Inc. * 1,370 38,538 Regeneron Pharmaceutical, Inc. * 4,000 54,320 Savient Pharmaceuticals, Inc. * 3,310 12,512 ------------ 221,597 ------------ BUILDING MATERIALS (1.73%) Apogee Enterprises, Inc. 1,540 18,988 Building Materials Holding Corp. 780 13,689 Butler Manufacturing Co. * 855 19,195 ElkCorp 1,490 40,364 Florida Rock Industries, Inc. 3,265 137,620 Lennox International, Inc. 4,120 76,426 Meritage Corp. * 1,060 78,705 Simpson Manufacturing Co., Inc. 2,040 99,858 Texas Industries, Inc. 1,690 61,094 Universal Forest Products, Inc. 1,450 44,747 ------------ 590,686 ------------ CHEMICALS (1.34%) Schulman (A.), Inc. 2,050 40,283 Arch Chemicals, Inc. 1,880 53,072 HB Fuller Co. 2,170 61,715 Georgia Gulf Corp. 2,450 73,867 MacDermid, Inc. 2,360 83,048 OM Group, Inc. * 2,141 65,086 Omnova Solutions, Inc. * 1,030 5,408 Penford Corp. 570 9,496 Polyone Corp. * 4,310 28,662 Quaker Chemical Corp. 860 21,844 Wellnan, Inc. 1,720 14,362 ------------ 456,843 ------------ COMMERCIAL SERVICES (3.92%) Aaron Rents, Inc. 2,460 61,229 ABM Industries, Inc. 3,380 60,671 Administaff, Inc. * + 1,940 33,814 Angelica Corp. 860 19,634 Arbitron, Inc. * 2,310 93,001 Bowne & Co., Inc. 2,334 39,911 CDI Corp. 1,579 50,970 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Central Parking Corp. 2,645 $ 53,112 Coinstar, Inc. * + 1,620 25,709 Consolidated Graphics, Inc. * 1,240 47,678 CPI Corp. 840 15,985 G&K Services, Inc. 1,697 63,162 Heidrick & Struggles, Inc. * 1,430 34,220 Hooper Holmes, Inc. 3,140 19,594 Insurance Auto Auctions, Inc. * 740 10,752 Kroll, Inc. * 3,070 82,430 Labor Ready, Inc. * 2,730 36,910 MAXIMUS, Inc. * 1,630 57,050 Memberworks, Inc. * + 870 30,380 NCO Group, Inc. * 1,950 45,571 On Assignment, Inc. * 1,320 7,379 PAREXEL International Corp. * 1,840 32,881 Pharmaceutical Product Development, Inc. * + 4,150 123,629 Pre-Paid Legal Services, Inc. * + 1,340 32,803 PRG-Schultz International, Inc. * 2,805 12,342 SOURCECORP, Inc. * 1,300 34,450 Spherion Corp. * 3,956 40,470 Startek, Inc. 1,170 42,518 The Nautilus Group, Inc. + 2,460 38,745 Volt Information Sciences, Inc. * 1,230 30,061 Watson Wyatt & Co. Holdings * 2,400 60,576 ------------ 1,337,637 ------------ COMMUNICATIONS SERVICES (0.28%) Webex Communications * + 3,190 94,839 ------------ COMPUTER HARDWARE (0.23%) Hutchinson Technology, Inc. * 2,020 56,681 Talx Corp. 1,050 23,047 ------------ 79,728 ------------ COMPUTER SERVICES (0.97%) CACI International, Inc. * 2,220 95,460 Carreker Corp. * 1,730 13,702 Ciber, Inc. * 3,930 43,230 Factset Research Systems, Inc. 2,560 108,954 Manhattan Associates, Inc. * 2,300 63,940 SCM Microsystems, Inc. * 830 5,569 ------------ 330,855 ------------ COMPUTER SOFTWARE (3.95%) American Management Systems * 2,878 55,258 Ansys, Inc. * 1,280 50,867 Avid Technology, Inc. * 2,350 108,405 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Barra, Inc. 1,530 $ 53,535 Captaris, Inc. * 1,190 6,545 Concord Communications, Inc. * 1,370 19,742 Digi International, Inc. * 1,320 13,028 eFunds Corp. * 3,260 53,464 EPIQ Systems, Inc. * + 1,320 21,622 Filenet Corp. * 2,842 75,739 Global Payments, Inc. 2,830 127,576 Hyperion Solutions Corp. * 3,036 125,842 Inter-Tel, Inc. 1,950 58,617 JDA Software Group, Inc. * 2,140 31,137 Mantech International Corp. * 2,300 47,127 Mapinfo Corp. * 1,110 14,164 Midway Games, Inc. * + 2,250 16,380 MRO Software, Inc. * 1,810 21,032 Netegrity, Inc. * 2,220 18,870 PC-Tel, Inc. * 1,560 16,115 Phoenix Technologies Ltd. * 1,340 7,223 Pinnacle Systems, Inc. * 4,070 36,752 Progress Software Corp. * 2,566 61,558 Roxio, Inc. * + 1,700 7,599 Serena Software, Inc. * + 2,910 59,219 SPSS, Inc. * 1,390 25,437 Take-Two Interactive Software * 3,300 121,374 THQ, Inc. * 2,805 56,745 Verity, Inc. * 2,710 37,046 ------------ 1,348,018 ------------ COMPUTERS-INTEGRATED SYSTEMS (0.95%) Agilysys, Inc. 2,110 25,109 Brooktrout, Inc. * 1,010 20,038 Catapult Communications Corp. * 1,060 18,899 Kronos, Inc. * 2,350 76,445 Mercury Computer Systems, Inc. * 1,670 42,585 Micros Systems, Inc. * 1,460 65,919 NYFIX, Inc. * 1,560 8,050 Radiant Systems, Inc. * 1,490 8,958 Radisys Corp. * 1,430 29,887 Safenet, Inc. * 733 27,517 ------------ 323,407 ------------ CONSUMER PRODUCTS (0.68%) Fossil, Inc. * 3,600 120,060 Russ Berrie & Co., Inc. 1,868 65,380 Wd-40 Co. 1,350 47,250 ------------ 232,690 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ DISTRIBUTION/WHOLESALE (1.42%) Advanced Marketing Services 890 $ 8,811 Bell Microproducts, Inc. * 1,560 11,232 Hughes Supply, Inc. 2,275 119,210 Owens & Minor, Inc. 2,794 70,688 SCP Pool Corp. * 2,790 103,955 United Stationers, Inc. * 2,600 109,460 Watsco, Inc. 2,065 59,885 ------------ 483,241 ------------ DIVERSIFIED FINANCIAL SERVICES (1.03%) Financial Federal Corp. * 1,430 47,805 Idine Rewards Network Financial * + 1,420 14,200 Investment Technology Group * 3,180 48,654 New Century Financial Corp. 2,629 127,664 Piper Jaffray Cos., Inc. * 1,660 89,889 SWS Group, Inc. 1,255 22,477 ------------ 350,689 ------------ DIVERSIFIED HOLDINGS (0.13%) CP HOLDRS 40 2,351 Roto-Rooter, Inc. 805 40,693 ------------ 43,044 ------------ DIVERSIFIED MANUFACTURING (1.74%) Acuity Brands, Inc. 3,060 73,073 AO Smith Corp. 2,222 64,327 Aptargroup, Inc. 2,828 108,595 Barnes Group, Inc. 1,840 51,318 Griffon Corp. * 2,150 46,440 Immucor, Inc. * 1,440 26,093 Lydall, Inc. * 650 6,630 Myers Industries, Inc. 1,510 18,573 Roper Industries, Inc. 2,736 132,012 Standex International Corp. 1,170 31,590 Tredegar Corp. 2,404 35,170 ------------ 593,821 ------------ E-COMMERCE (0.02%) QRS Corp. * 1,120 6,317 ------------ ELECTRICAL COMPONENTS (0.64%) Advanced Energy Industries, Inc. * 2,460 50,159 Artesyn Technologies, Inc. * 2,630 25,038 Belden, Inc. 1,880 35,664 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ C&D Technologies, Inc. 1,850 $ 30,913 Intermagnetics General Corp. * 1,298 34,397 Magnetek, Inc. * 830 6,275 Vicor Corp. * 2,909 35,693 ------------ 218,139 ------------ ELECTRONIC COMPONENTS (1.38%) Bel Fuse, Inc. 1,000 32,740 Benchmark Electronics, Inc. * 3,070 96,644 CTS Corp. 2,540 33,122 Cubic Corp. 1,990 51,740 Daktronics, Inc. * 1,420 32,049 DSP Group, Inc. * 2,130 54,805 Methode Electronics 2,230 28,767 Planar Systems, Inc. * 1,060 15,084 Rogers Corp. * 1,370 73,117 Technitrol, Inc. * 2,880 54,144 ------------ 472,212 ------------ ELECTRONIC INSTRUMENTS (1.51%) BEI Technologies, Inc. 1,140 25,604 Coherent, Inc. * 2,270 59,678 Cymer, Inc. * 2,740 105,792 Dionex Corp. * 1,688 89,126 Electro Scientific Industries, Inc. * 2,390 56,261 Meade Instruments Corp. * 1,160 4,686 Photon Dynamics, Inc. * 1,240 40,461 Watts Industries, Inc. 2,380 55,668 Woodward Governor Co. 950 60,553 X-Rite, Inc. 1,240 18,464 ------------ 516,293 ------------ ELECTRONIC MEASURING INSTRUMENTS (1.00%) Analogic Corp. 1,230 55,953 FEI Co. * 2,480 54,188 Flir Systems, Inc. * 2,480 94,538 Itron, Inc. * 1,510 28,101 Keithley Instruments, Inc. 1,180 24,438 Trimble Navigation Ltd. * 3,705 84,956 ------------ 342,174 ------------ ELECTRONICS (0.80%) Brady Corp. 1,900 72,352 Checkpoint Systems, Inc. * 2,420 45,738 Invision Technologies, Inc. * 1,280 63,578 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Park Electrochemical Corp. 1,624 $ 41,087 Paxar Corp. * 2,109 31,108 SBS Technologies, Inc. * 1,160 17,933 ------------ 271,796 ------------ ENGINEERING SERVICES (0.43%) EMCOR Group, Inc. * 1,260 46,242 Insituform Technologies, Inc. * 1,800 28,134 URS Corp. * 2,460 70,799 ------------ 145,175 ------------ ENVIRONMENTAL CONTROL (0.65%) Ionics, Inc. * + 1,775 50,410 Tetra Tech, Inc. * 3,943 84,617 Waste Connections, Inc. * 2,190 87,162 ------------ 222,189 ------------ FILTRATION PRODUCTS (0.46%) Clarcor, Inc. 2,100 92,715 Cuno, Inc. * 1,440 64,627 ------------ 157,342 ------------ FOOD (2.09%) American Italian Pasta Co. + 1,420 56,701 Corn Products International, Inc. 2,820 112,800 Flowers Industries, Inc. 3,290 86,330 Great Atlantic & Pacific Tea Co. * 2,440 18,886 Hain Celestial Group, Inc. * 2,460 54,341 International Multifoods Corp. * 1,390 34,361 J&J Snack Foods Corp. * 880 39,758 Nash Finch Co. 1,930 31,633 Performance Food Group Co. * 930 22,022 Ralcorp Holdings, Inc. * 3,440 118,164 United Natural Foods, Inc. * 2,150 65,424 1,510 72,616 ------------ 713,036 ------------ FOREST PRODUCTS & PAPER (0.49%) Buckeye Technologies, Inc. * 1,940 20,098 Caraustar Industries, Inc. * 1,805 21,028 Deltic Timber Corp. 1,130 40,092 Pope & Talbot, Inc. 1,205 20,714 Rock-Tenn Co. 2,000 28,840 Wausau-Mosinee Paper Corp. 2,620 36,916 ------------ 167,688 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ GARDEN PRODUCTS (0.36%) Toro Co. 1,988 $ 123,256 ------------ HAND/MACHINE TOOLS (0.29%) Baldor Electric Co. 2,350 54,003 Milacron, Inc. * 1,770 6,142 Regal-Beloit Corp. 1,928 38,521 ------------ 98,666 ------------ HEALTHCARE PRODUCTS (6.46%) Advanced Medical Optics, Inc. * 2,130 51,972 American Healthways, Inc. * + 2,340 57,143 American Medical Systems Holdings, Inc. * 2,460 65,190 Arthrocare Corp. * 1,560 36,052 Biosite, Inc. * + 1,200 38,364 Centene Corp. * 1,530 46,803 Conmed Corp. * 2,150 63,511 Cooper Cos., Inc. 2,370 127,980 Cross Country Healthcare, Inc. * 2,270 37,795 Datascope Corp. 1,230 43,222 Diagnostic Products Corp. 2,220 96,126 Haemonetics Corp. * 1,790 56,296 Hologic, Inc. * 1,470 29,768 ICU Medical, Inc. * + 1,080 32,800 Idexx Laboratories, Inc. * 2,669 151,786 Inamed Corp. * 2,620 139,594 Invacare Corp. 2,366 106,801 Mentor Corp. 3,276 98,608 Natures Sunshine Products, Inc. 730 10,833 NBTY, Inc.* 4,933 183,409 Odyssey Healthcare, Inc. * 2,665 50,235 PolyMedica Corp. + 1,920 51,494 Resmed, Inc. * 2,560 115,686 Respironics, Inc. * 2,670 144,233 Sola International, Inc. * 2,300 53,475 SurModics, Inc. * + 1,320 26,281 Sybron Dental Specialties, Inc. * 2,790 76,028 Techne Corp. * 3,100 126,511 UnitedHealth Group, Inc. 1 64 Viasys Healthcare, Inc. * 2,210 49,990 Vital Signs, Inc. 1,103 37,204 ------------ 2,205,254 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ HEALTHCARE SERVICES (2.37%) AMERIGROUP Corp. * 1,830 $ 83,631 Amsurg Corp. * 2,265 51,438 Curative Health Services, Inc. * 690 9,246 Orthodontic Centers Of America * + 2,860 22,594 Pediatrix Medical Group, Inc. * 1,790 112,770 Province Healthcare Co. * 3,370 53,583 RehabCare Group, Inc. * 1,240 24,651 Renal Care Group, Inc. * 3,630 166,109 Sierra Health Services * 2,030 73,892 Sunrise Assisted Living, Inc. * + 1,540 55,209 United Surgical Partners International, Inc. * 2,060 69,916 US Oncology, Inc. * 5,790 85,576 ------------ 808,615 ------------ HOME BUILDERS (2.93%) Champion Enterprises, Inc. * 4,105 43,513 Coachmen Industries, Inc. 1,120 18,682 Fleetwood Enterprises, Inc. * + 2,770 34,016 MDC Holdings, Inc. 2,482 174,705 Monaco Coach Corp. 2,235 59,898 NVR, Inc. * 500 230,000 Ryland Group, Inc. 1,888 167,711 Skyline Corp. 950 36,642 Standard-Pacific Corp. 2,510 150,600 Winnebago Industries 2,680 83,536 ------------ 999,303 ------------ HOME FURNISHINGS (0.66%) Bassett Furniture Industries, Inc. 988 19,592 Ethan Allen Interiors, Inc. 2,906 119,902 La-Z-Boy, Inc. 3,903 84,929 ------------ 224,423 ------------ HOTELS & MOTELS (0.10%) Prime Hospitality Corp. * 2,890 32,888 ------------ HOUSEWARES (0.19%) Enesco Group, Inc. * 390 4,485 Libbey, Inc. 1,100 28,523 National Presto Industries, Inc. 870 33,721 ------------ 66,729 ------------ INSURANCE (2.06%) Delphi Financial Group 2,373 99,713 Hilb Rogal & Hamilton Co. 2,700 102,870 Landamerica Financial Group, Inc. 1,530 69,248 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Philadelphia Consolidated Holding Co. * 1,680 $ 97,440 Presidential Life Corp. 1,910 28,612 RLI Corp. 1,880 72,568 SCPIE Holdings, Inc. 610 5,002 Selective Insurance Group 2,028 71,122 Stewart Information Services Corp. 1,420 55,806 UICI * 2,830 41,771 Zenith National Insurance Corp. + 1,538 60,290 ------------ 704,442 ------------ INTERNET SERVICES & SOFTWARE (0.35%) J2 Global Communications, Inc. * + 1,720 38,803 Websense, Inc. * 1,710 50,633 Zix Corp. * + 2,080 30,326 ------------ 119,762 ------------ LEISURE & RECREATION (0.21%) Bally Total Fitness Holding Corp. * 1,680 9,845 K2, Inc. * 2,500 40,075 Pegasus Solutions, Inc. * 1,750 20,440 ------------ 70,360 ------------ MACHINERY-DIVERSIFIED (2.39%) Albany International Corp. 2,550 68,569 Applied Industrial Technologies, Inc. 1,480 33,626 Astec Industries, Inc. * 1,320 21,265 Briggs & Stratton 1,830 123,470 Brooks-PRI Automation, Inc. * 3,270 68,605 Cognex Corp. 3,317 110,290 Gardner Denver, Inc. * 1,340 36,287 Gerber Scientific, Inc. * 1,491 10,139 IDEX Corp. 2,680 116,526 JLG Industries, Inc. 2,970 42,471 Lindsay Manufacturing Co. 1,049 25,260 Manitowoc Co. 2,057 60,846 Robbins & Meyers, Inc. 1,170 25,214 Stewart & Stevenson Services 1,770 25,877 Thomas Industries, Inc. 1,540 48,510 ------------ 816,955 ------------ MEDIA (0.17%) 4kids Entertainment, Inc. * 1,070 23,936 Information Holdings, Inc. * 1,630 33,611 ------------ 57,547 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ MEDICAL INFORMATION SYSTEMS (0.71%) Cerner Corp. * + 2,690 $ 121,561 Dendrite International, Inc. * 2,965 47,440 NDCHealth Corp. 2,666 72,382 ------------ 241,383 ------------ METAL FABRICATION (2.00%) AM Castle & Co. * 757 6,843 Carpenter Technology 1,800 59,184 Commercial Metals Co. 2,160 68,774 Intermet Corp. 260 1,170 Kaydon Corp. 2,160 59,465 Lawson Products 1,010 32,936 Maverick Tube Corp. * 3,080 72,534 Mueller Industries, Inc. 2,622 89,122 Quanex Corp. 1,358 57,701 Shaw Group, Inc. * + 4,060 44,010 Timken Co. 6,510 151,227 Valmont Industries, Inc. 1,680 33,566 Wolverine Tube, Inc. * 825 6,922 ------------ 683,454 ------------ METALS (0.80%) Cleveland-Cliffs, Inc. * 840 54,961 Material Sciences Corp. * 630 6,930 Reliance Steel & Aluminum Co. 2,465 86,645 Ryerson Tull, Inc. 1,740 22,777 Steel Dynamics, Inc. * 3,580 88,712 Steel Technologies, Inc. 740 14,297 ------------ 274,322 ------------ MILITARY DEFENSE (0.28%) Engineered Support Systems, Inc. 1,990 97,092 ------------ MINING (0.65%) Brush Engineered Materials, Inc. * 1,270 25,743 Century Aluminum Co. * 1,620 45,733 Commonwealth Industries, Inc. * 930 6,798 Massey Energy Co. 5,520 121,826 RTI International Metal, Inc. * 1,450 22,954 ------------ 223,054 ------------ OFFICE EQUIPMENT (0.41%) Global Imaging Systems, Inc. * 1,710 56,806 Imagistics International, Inc. * 1,420 62,551 Interface, Inc. * 2,468 19,621 ------------ 138,978 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ OFFICE SUPPLIES (0.41%) John H. Harland Co. 2,180 $ 67,842 New England Business Services, Inc. 1,190 40,281 Standard Register Co. 1,990 31,900 ------------ 140,023 ------------ OIL & GAS (5.80%) Atwood Oceanics, Inc. * 1,350 48,047 Cabot Oil & Gas Corp. 2,391 73,069 CAL Dive International, Inc. * 2,570 66,383 CARBO Ceramics, Inc. 1,300 81,835 Cimarex Energy Co. * 2,900 83,810 Dril-Quip, Inc. * 1,050 17,262 Eagle Geophysical, Inc. * 65 - Evergreen Resources, Inc. * 3,140 107,859 Frontier Oil Corp. 2,010 38,954 Hydril Co. * 1,570 41,134 Input/Output, Inc. * 2,704 20,956 Lone Star Technologies * 2,120 37,460 Newfield Exploration Co. * 4,202 201,402 Nuevo Energy Co. * 1,520 49,491 Oceaneering International, Inc. * 1,846 56,211 Patina Oil & Gas Corp. 5,136 134,820 Plains Resources, Inc. * 1,550 28,179 Prima Energy Corp. * 1,080 37,314 Remington Oil & Gas Corp. * 1,850 36,538 Seacor Smit, Inc. * 1,680 69,014 Southwestern Energy Co. * 2,490 60,059 Spinaker Exploration Co. * 2,480 89,082 St. Mary Land & Exploration Co. 2,060 68,866 Stone Energy Corp. * 2,090 103,371 Swift Energy Co. * 1,990 37,511 Tetra Technologies, Inc. * 1,755 45,858 Tom Brown, Inc. * 3,400 127,840 Unit Corp. * 3,060 83,905 Veritas DGC, Inc. * + 2,350 48,645 Vintage Petroleum, Inc 4,206 61,660 W-H Energy Services, Inc. * 1,490 21,560 ------------ 1,978,095 ------------ PACKAGING & CONTAINERS (0.09%) Chesapeake Corp. 1,330 31,747 ------------ PHARMACEUTICALS (1.51%) Accredo Health, Inc. * 3,560 135,636 Alpharma, Inc. 3,790 74,322 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Cima Labs, Inc. * 1,170 $ 36,773 Medicis Pharmaceutical 4,110 164,400 Noven Pharmaceuticals, Inc. * 1,710 36,714 Priority Healthcare Corp. * 3,158 67,234 ------------ 515,079 ------------ PHOTOGRAPHY EQUIPMENT (0.03%) Concord Camera Photo Equipment * 1,740 10,927 ------------ PUBLISHING (0.09%) Thomas Nelson, Inc. 1,150 31,303 ------------ REAL ESTATE INVESTMENT TRUSTS (2.42%) Capital Automotive REIT 2,750 97,103 Colonial Properties Trust 2,540 103,632 Commercial Net Lease Realty 2,490 49,178 Essex Property Trust, Inc. 2,120 138,860 Gables Residential Trust 2,580 93,525 Glenborough Realty Trust, Inc. 2,030 45,371 Kilroy Realty Corp. 2,400 85,200 Lexington Corporate Properties Trust 2,860 62,319 Shurgard Storage Centers, Inc. 3,760 150,024 ------------ 825,212 ------------ RECREATIONAL VEHICLES (0.95%) Arctic Cat, Inc. 1,780 45,372 Polaris Industries, Inc. 3,560 161,766 Thor Industries, Inc. 4,310 115,767 ------------ 322,905 ------------ RECYCLING (0.01%) IMCO Recycling, Inc. * 460 4,333 ------------ RETAIL-APPAREL (2.34%) Brown Shoe Co., Inc. 1,499 54,609 Burlington Coat Factory Warehouse Corp. 3,300 65,340 Cato Corp. 1,600 32,128 Childrens Place * + 2,070 64,108 Christopher & Banks Corp. 2,790 58,897 Dress Barn, Inc. * 2,132 37,395 Genesco, Inc. * 1,670 38,711 Goody's Family Clothing, Inc. 1,850 26,400 HOT Topic, Inc. * 3,605 95,352 Men's Wearhouse, Inc. * 2,875 76,389 Pacific Sunwear Of California * 5,833 143,142 Stein Mart, Inc. * 2,770 38,226 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Too, Inc. * 2,590 $ 54,260 Wet Seal, Inc. * 1,750 14,437 ------------ 799,394 ------------ RETAIL-AUTO PARTS (0.67%) Group 1 Automotive, Inc. * 1,780 64,436 PEP Boys-Manny Moe & Jack 4,050 112,388 TBC Corp. * 1,740 51,104 ------------ 227,928 ------------ RETAIL-BEDDING (0.56%) Linens 'N Things, Inc. * 3,400 120,394 Select Comfort Corp. * + 2,530 69,803 ------------ 190,197 ------------ RETAIL-COMPUTER EQUIPMENT (0.36%) Electronics Boutique Holdings Corp. * 1,890 55,490 Insight Enterprises, Inc. * 3,435 66,124 ------------ 121,614 ------------ RETAIL-CONSUMER ELECTRONICS (0.01%) Ultimate Electronics, Inc. * 780 5,093 ------------ RETAIL-CONVENIENCE STORE (0.16%) Casey's General Stores, Inc. 3,392 56,307 ------------ RETAIL-DISCOUNT (0.31%) Fred's, Inc. 2,950 71,596 ShopKo Stores, Inc. * 2,324 33,977 ------------ 105,573 ------------ RETAIL-DRUG STORE (0.09%) Duane Reade, Inc. * 1,740 29,476 ------------ RETAIL-FABRIC STORE (0.20%) Hancock Fabrics, Inc. 1,300 20,657 Jo-Ann Stores, Inc. * 1,692 47,461 ------------ 68,118 ------------ RETAIL-GARDENING PRODUCTS (0.32%) Tractor Supply * 2,820 109,190 ------------ RETAIL-HOME FURNISHINGS (0.32%) Cost Plus, Inc. * 1,700 70,975 Haverty Furniture Cos., Inc. 1,720 36,602 ------------ 107,577 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ RETAIL-JEWELRY (0.37%) Zale Corp. * 2,050 $ 126,177 ------------ RETAIL-MAIL ORDER (0.09%) J. Jill Group, Inc. * 1,470 30,164 ------------ RETAIL-MUSIC (0.20%) Guitar Center, Inc. * 1,830 67,966 ------------ RETAIL-OFFICE SUPPLIES (0.15%) School Specialty, Inc. * 1,480 52,644 ------------ RETAIL-PAWN (0.14%) Cash America International, Inc. 2,060 47,483 ------------ RETAIL-RESTAURANTS (1.50%) CEC Entertainment, Inc. * 3,243 112,532 Ihop Corp. 2,100 72,324 Landry's Restaurants, Inc. 2,350 70,101 P.F. Chang's China Bistro, Inc. * + 2,190 110,179 Panera Bread Co. * + 2,410 93,797 Papa John's International, Inc. * 1,560 52,790 ------------ 511,723 ------------ RETAIL-VIDEO RENTAL (0.13%) Movie Gallery, Inc. 2,300 45,057 ------------ SAVINGS & LOANS (2.61%) Anchor Bancorp Wisconsin, Inc. 1,580 40,369 Bankunited Financial Corp. * 2,250 66,825 Commercial Federal Corp. 3,080 85,008 Dime Community Bancshares 2,797 56,919 Downey Financial Corp. 2,296 121,459 FirstFed Financial Corp. * 1,410 65,043 Flagstar Bancorp, Inc. 4,290 110,039 MAF Bancorp, Inc. 2,640 114,734 Seacoast Financial Services Corp. 1,960 65,660 Staten Island Bancorp, Inc. 4,130 102,754 Waypoint Financial Corp. 2,361 63,322 ------------ 892,132 ------------ SEMICONDUCTORS (3.21%) Actel Corp. * 1,980 44,807 Alliance Semiconductor Corp. * 2,220 16,894 ATMI, Inc. * 2,400 63,168 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Axcelis Technologies, Inc. * 6,910 $ 76,839 Cohu, Inc. 1,680 31,332 Dupont Photomasks, Inc. * 1,520 35,355 ESS Technology * 2,800 41,048 Exar Corp. * 3,010 55,685 Helix Technology Corp. 2,000 48,500 Kopin Corp. * 3,910 22,600 Kulicke & Soffa Industries, Inc. * 3,550 41,606 Microsemi Corp. * 4,300 58,824 Pericom Semiconductor Corp. * 1,570 18,024 Photronics, Inc. * 2,390 42,399 Power Integrations, Inc. * 2,310 67,752 Rudolph Technologies, Inc. * 1,280 23,974 Skyworks Solutions, Inc. * 10,700 124,762 Standard Microsystems Corp. * 1,440 38,362 Supertex, Inc. * 1,030 17,180 Three-Five Systems, Inc. * 1,150 7,532 Ultratech Stepper, Inc. * 1,780 41,492 Varian Semiconductor Equipment Associates, Inc. * 2,730 114,660 Veeco Instruments, Inc. * 2,250 63,113 ------------ 1,095,908 ------------ STORAGE/WAREHOUSING (0.06%) Mobile Mini, Inc. * + 1,090 18,857 ------------ TELECOMMUNICATIONS (2.00%) Adaptec, Inc. * 7,010 61,408 Aeroflex, Inc. * 4,745 63,868 Anixter International, Inc. 2,726 77,009 Audiovox Corp. * 1,990 39,800 Black Box Corp. 1,460 78,241 Boston Communications Group * 960 11,376 Cable Design Technologies Corp. * + 2,570 24,364 C-COR.net Corp. * 3,010 42,200 Commonwealth Telephone Enterprises, Inc. * 1,890 77,509 General Communication * 3,130 28,483 Harmonic, Inc. * 5,010 48,347 Intrado, Inc. * 1,170 22,638 Network Equipment Technologies, Inc. * 1,570 15,669 Symmetricom, Inc. * 2,675 23,995 Tollgrade Communications, Inc. * 1,020 16,279 Viasat, Inc. * 2,000 49,760 ------------ 680,946 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ THERAPEUTICS (0.44%) MGI Pharma, Inc. * 2,370 $ 145,186 Theragenics Corp. * 1,150 6,187 ------------ 151,373 ------------ TOY/GAMES/HOBBIES (0.20%) Action Performance Cos., Inc. 1,320 20,156 Department 56 * 1,500 22,170 Jakks Pacific, Inc. * + 1,820 27,300 ------------ 69,626 ------------ TRANSPORTATION (2.24%) Arkansas Best Corp. 1,890 50,633 EGL, Inc. * 3,250 58,370 Forward Air Corp. * 1,710 56,208 Heartland Express, Inc. 3,564 81,188 Kansas City Southern * 4,000 55,600 Kirby Corp. * 1,857 62,748 Knight Transportation, Inc. * 2,740 65,705 Landstar System, Inc. * 2,520 103,169 Offshore Logistics, Inc. * 1,710 39,415 SCS Transportation, Inc. * 1 22 USF Corp. 2,162 73,984 Yellow Corp. * 3,525 118,687 ------------ 765,729 ------------ UTILITIES (3.61%) American States Water Co. 1,095 26,718 Atmos Energy Corp. 3,456 88,370 Avista Corp. 3,150 59,598 Cascade Natural Gas Corp. 1,380 30,070 Central Vermont Public Sevice Corp. 1,640 36,900 CH Energy Group, Inc. 1,610 79,035 Cleco Corp. 2,990 56,900 El Paso Electric Co. * 2,320 32,109 Energen Corp. 2,790 115,087 Green Mountain Power Corp. 670 17,333 Laclede Group, Inc. 1,530 46,359 New Jersey Resources Corp. 2,084 78,775 Northwest Natural Gas Co. 1,802 56,312 NUI Corp. 980 16,572 Piedmont Natural Gas Co. 2,889 121,974 Southern Union Co. * 4,940 93,613 Southwest Gas Corp. 2,069 48,415 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND SMALL CAP EQUITY FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ UGI Corp. 3,030 $ 99,748 UIL Holdings Corp. 1,381 66,523 Unisource Energy Corp. 2,460 60,442 ------------ 1,230,853 ------------ TOTAL COMMON STOCK (Cost $28,369,885) 33,263,343 ------------ MISCELLANEOUS INVESTMENTS (1.29%) Midcap SPDR Trust Series 1 + 4,000 441,040 Other Investments + 1,500 41 ------------ TOTAL MISCELLANEOUS INVESTMENTS (Cost $438,728) 441,081 ------------ SHORT TERM INVESTMENTS (6.30%) Deutsche Bank Tri-Part Agency Repurchase Agreement, 1.06%, 04/01/04 # 1,843,847 1,843,847 Fifth Third Institutional Government Money Market Fund, 0.79% ** 307,170 307,170 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $2,151,017) 2,151,017 TOTAL INVESTMENTS (Cost $30,959,630) (105.07%) $35,855,441 LIABILITIES IN EXCESS OF OTHER ASSETS (-5.07%) (1,731,455) ------------ NET ASSETS (100%) $34,123,986 ============ Cost for federal income tax at March 31, 2004 was $30,990,445 and net unrealized appreciation consisted of: Gross unrealized appreciation $ 6,774,119 Gross unrealized depreciation (1,909,123) ------------ Net unrealized appreciation $ 4,864,996 ============ * Non-income producing investment ** Rate shown represents the rate at March 31, 2004, is subject to change and resets daily. # Represents investment of cash received as collateral for securities on loan. + Portion or all of this security is on loan. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND INTERNATIONAL FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ COMMON STOCK (92.23%) AUSTRIA (0.21%) Telekom Austria AG ADR * 1,060 $ 30,284 ------------ AUSTRALIA (5.11%) Amcor Ltd. ADR 3,270 80,475 Ansell Ltd. ADR 1,150 24,150 Australia & New Zealand Banking Group Ltd. ADR 1,830 132,309 BHP Billiton Ltd. ADR 4,640 87,139 Coles Myer Ltd. ADR 1,630 80,196 CSR Ltd. ADR 1,360 7,398 National Australia Bank Ltd. ADR 930 110,121 Telstra Corp. Ltd. ADR 2,420 42,326 Westpac Banking Corp. ADR 2,720 182,077 ------------ 746,191 ------------ BELGIUM (0.19%) Delhaize Group ADR 600 27,906 ------------ BRITAIN (22.93%) Amersham Plc ADR 610 45,292 Amvescap Plc ADR 1,180 17,853 AstraZeneca Plc ADR 3,550 165,891 Barclays Plc ADR 4,840 174,918 BG Group Plc ADR 2,890 88,145 BOC Group Plc ADR 2,370 78,613 Boots Group Plc ADR 2,480 56,472 BP Plc ADR 7,410 379,392 British Airways Plc ADR * 310 15,810 British Sky Broadcasting Plc ADR 870 44,344 BT Group Plc ADR 1,970 65,778 Bunzl Plc ADR 1,580 67,024 Carnival Plc ADR 676 31,704 Galen Holdings Plc ADR 220 13,497 GlaxoSmithKline Plc ADR 6,520 260,474 Hanson Plc ADR 1,210 46,887 HSBC Holdings Plc ADR 4,970 371,756 Imperial Chemical Industries Plc ADR 1,120 18,782 International Power Plc ADR * 950 25,698 Kesa Electricals Plc 152 751 Kingfisher Plc ADR 1 5 Lloyds TSB Group Plc ADR 3,890 120,940 Marks & Spencer Group Plc ADR 1,600 49,137 National Grid Transco Plc ADR 2,660 107,012 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND INTERNATIONAL FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Prudential Plc ADR 3,080 $ 51,682 Reed Elsevier Plc ADR 1,610 57,155 Rentokil Initial Plc ADR 1,800 30,146 Reuters Group Plc ADR 680 29,131 Rexam Plc ADR 1,020 42,840 Rio Tinto Plc ADR 650 65,377 Scottish Power Plc ADR 2,350 66,646 Shell Transport & Trading Co. Plc ADR 1,130 45,098 Signet Group Plc ADR 420 26,040 Smith & Nephew Plc ADR 720 36,389 Tesco Plc ADR 6,500 88,072 Unilever Plc ADR 2,200 88,660 United Utilities Plc ADR 3,410 66,495 Vodafone Group Plc ADR 13,180 315,002 Wolseley Plc ADR 1,795 57,404 WPP Group Plc ADR 710 36,153 ------------ 3,348,465 ------------ CHINA (0.25%) PetroChina Co. Ltd. ADR 410 20,951 Yanzhou Coal Mining Co. Ltd. ADR 280 15,540 ------------ 36,491 ------------ DENMARK (0.53%) D/S Torm A/S ADR 490 29,223 Novo-Nordisk A/S ADR 1,040 48,287 ------------ 77,510 ------------ FINLAND (1.80%) Instrumentarium OYJ ADR 570 24,664 Nokia OYJ ADR 9,910 200,975 UPM-Kymmene OYJ ADR 2,020 37,330 ------------ 262,969 ------------ FRANCE (7.56%) Alcatel SA ADR 2,690 42,636 Aventis SA ADR 1,750 134,575 AXA ADR 4,650 97,603 Business Objects SA ADR * 480 13,680 Dassault Systemes SA ADR 470 19,599 Groupe Danone ADR 3,160 104,217 Lafarge SA ADR 3,160 64,496 Peugeot SA ADR 910 46,364 Publicis Groupe ADR 930 28,356 Sanofi-Synthelabo SA ADR 2,970 97,030 Sodexho Alliance SA ADR 1,110 33,522 Suez SA ADR 2,860 58,830 Technip SA ADR 870 30,102 Thomson ADR 1,040 19,396 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND INTERNATIONAL FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Total SA ADR 2,730 $ 251,160 Valeo SA ADR 1,130 23,440 Veolia Environnement ADR 1,370 38,374 ------------ 1,103,380 ------------ GERMANY (5.75%) Allianz AG ADR 6,040 65,957 Altana AG ADR 270 16,810 BASF AG ADR 1,870 95,557 Bayer AG ADR 2,510 61,244 Commerzbank AG ADR 990 16,765 Deutsche Telekom AG ADR * 5,610 101,204 E.ON AG ADR 1,720 113,554 Infineon Technologies AG ADR * 1,160 16,994 Pfeiffer Vacuum Technology AG ADR 500 17,995 RWE AG ADR 1,710 76,701 SAP AG ADR 1,820 71,544 Schering AG ADR 1,090 52,113 Siemens AG ADR 1,800 133,290 ------------ 839,728 ------------ HONG KONG (1.35%) CNOOC Ltd. ADR 1,430 61,490 Huaneng Power International, Inc. ADR 230 18,014 Hutchison Whampoa Ltd. ADR 3,270 117,519 ------------ 197,023 ------------ IRELAND (1.04%) Allied Irish Banks Plc ADR 2,370 70,981 Bank of Ireland ADR 1,250 63,188 Ryanair Holdings Plc ADR * 500 17,095 ------------ 151,264 ------------ ITALY (3.19%) Benetton Group SpA ADR 1,700 36,890 Ducati Motor Holding SpA ADR * 1,830 29,692 Enel SpA ADR + 3,490 142,706 Ente Nazionale Idrocarburi SpA ADR 1,610 162,529 Sanpaolo IMI SpA ADR 4,130 94,701 ------------ 466,518 ------------ JAPAN (17.28%) Advantest Corp. ADR 1,510 30,864 Bridgestone Corp. ADR 1,230 38,614 Canon, Inc. ADR 2,470 127,946 Casio Computer Co. Ltd. ADR 360 42,839 CSK Corp. ADR 540 23,549 Fuji Photo Film Co. Ltd. ADR 2,440 77,348 Fujitsu Ltd. ADR 2,130 68,076 Hitachi Ltd. ADR 1,230 95,386 Honda Motor Co. Ltd. ADR 4,510 104,361 Komatsu Ltd. ADR 1,590 40,348 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND INTERNATIONAL FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Konami Corp. ADR 640 $ 18,720 Kubota Corp. ADR 2,050 49,200 Kyocera Corp. ADR 520 43,649 Matsushita Electric Industrial Co. Ltd. ADR 6,130 94,525 Millea Holdings, Inc. ADR 1,500 116,625 Mitsubishi Corp. ADR 3,160 74,721 Mitsubishi Tokyo Financial Group, Inc. ADR 9,120 90,562 Mitsui & Co. Ltd. ADR 410 74,415 NEC Corp. ADR 4,160 34,154 Nidec Corp. ADR 1,420 36,991 Nintendo Co. Ltd. ADR 2,640 33,338 Nippon Telegraph & Telephone Corp. ADR 3,780 107,125 Nissan Motor Co. Ltd. ADR 3,460 76,155 Nomura Holdings, Inc. ADR 6,740 122,938 NTT DoCoMo, Inc. ADR 4,400 97,504 Olympus Corp. ADR 1,690 36,388 ORIX Corp. ADR 1,170 64,467 Pioneer Corp. ADR 1,340 39,342 QP Corp. ADR 2,230 38,626 Ricoh Co. Ltd. ADR 610 62,525 Sanyo Electric Co. Ltd. ADR 1,810 44,798 Sharp Corp. ADR 3,440 61,469 Shiseido Co. Ltd. ADR 1,870 24,374 Sony Corp. ADR 2,170 90,728 TDK Corp. ADR 540 40,916 Toyota Motor Corp. ADR 3,040 226,480 Wacoal Corp. ADR 1,390 72,322 ------------ 2,522,388 ------------ NETHERLANDS (8.26%) ABN AMRO Holding NV ADR 5,350 120,000 Aegon NV ADR 3,307 42,495 Akzo Nobel NV ADR 1,510 56,051 ASML Holding NV ADR * 1,120 20,530 Equant NV ADR * 3,370 61,671 Gucci Group NV 350 29,914 ING Groep NV ADR 5,720 126,126 James Hardie Industries NV ADR 1,720 42,536 Koninklijke Ahold NV ADR 2,400 19,800 Koninklijke Philips Electronics NV 3,250 94,185 Reed Elsevier NV ADR 2,240 59,360 Royal Dutch Petroleum Co. ADR 4,850 230,763 Royal KPN NV ADR 4,010 31,599 STMicroelectronics NV ADR 1,690 39,884 TPG NV ADR 2,660 56,365 CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND INTERNATIONAL FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ------------ Unilever NV 1,660 $ 115,270 VNU NV ADR 1,300 37,223 Wolters Kluwer NV ADR 1,320 22,564 ------------ 1,206,336 ------------ NEW ZEALAND (0.76%) Telecom Corp. of New Zealand Ltd. ADR 3,540 110,696 ------------ NORWAY (0.69%) Norsk Hydro ASA ADR 1,430 100,772 ------------ PORTUGAL (0.94%) Banco Comercial Portugues SA ADR 2,030 18,514 Electricidade de Portugal SA ADR 4,210 119,017 ------------ 137,531 ------------ SINGAPORE (0.92%) DBS Group Holdings Ltd. ADR 2,480 85,219 United Overseas Bank Ltd. ADR 3,090 49,403 ------------ 134,622 ------------ SPAIN (4.05%) Banco Bilbao Vizcaya Argentaria SA ADR 9,310 123,637 Banco Santander Central Hispano SA ADR 10,870 119,353 Endesa SA ADR 5,220 95,161 Repsol YPF SA ADR 4,250 88,443 Telefonica SA ADR 3,614 164,582 ------------ 591,176 ------------ SWEDEN (1.93%) Electrolux AB ADR 760 31,289 Telefonaktiebolaget LM Ericsson ADR * 3060 84,915 Tele2 AB ADR * 440 20,196 SKF AB ADR 920 33,305 Svenska Cellulosa AB ADR 1,210 48,376 Volvo AB ADR 1,910 63,221 ------------ 281,302 ------------ SWITZERLAND (7.49%) Ciba Specialty Chemicals AG ADR 2,560 88,038 Compagnie Financiere Richemont AG ADR 2,420 65,044 Converium Holding AG ADR 2,130 52,334 Credit Suisse Group ADR 3,580 124,584 Holcim Ltd. ADR 2,410 64,442 Novartis AG ADR 6,930 295,218 Roche Holding AG ADR 2,170 211,973 Serono SA ADR 1,090 16,775 Swisscom AG ADR 1,950 64,311 Swiss Reinsurance ADR 1,070 73,735 Syngenta AG ADR 2,530 36,508 ------------ 1,092,962 ------------ CAPSTONE SOCIAL ETHICS & RELIGIOUS VALUES FUND INTERNATIONAL FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
Shares Value ------- ------------ TOTAL COMMON STOCK (Cost $10,284,640) $13,465,514 ------------ INVESTMENT COMPANIES (5.33%) Ishares MSCI EAFE Index Fund + (Cost $761,825) 5,500 778,800 ------------ PREFERRED STOCK (0.67%) Premier Farnell Plc ADR (Cost $70,760) 3,860 97,948 ------------ SHORT TERM INVESTMENTS (7.14%) Deutsche Bank Tri-Part Agency Repurchase Agreement, 1.06%, 04/01/04 # 904,700 904,700 Fifth Third Institutional Government Money Market Fund, 0.97% ** 138,018 138,018 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $1,042,718) $ 1,042,718 ------------ TOTAL INVESTMENTS (Cost $12,159,943) (105.37%) $15,384,980 LIABILITIES IN EXCESS OF OTHER ASSETS (-5.37%) (784,543) NET ASSETS (100%) ------------ $14,600,437 ============ Cost for federal income tax at March 31, 2004 was $12,160,132 and net unrealized appreciation consisted of: Gross unrealized appreciation $ 3,263,006 Gross unrealized depreciation (38,158) Net unrealized appreciation ------------- $ 3,224,848 ============
* Non-income producing investment ** Rate shown represents the rate at March 31, 2004, is subject to change and resets daily. # Represents investment of cash received as collateral for securities on loan. + Portion or all of this security is on loan. ADR - American depository receipt THE ACCOMPANYING NOTES ARE ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) MARCH 31, 2004 - -------------------------------------------------------------------------------------------------------------------------------- SHORT-TERM BOND LARGE CAP SMALL CAP INTERNATIONAL BOND FUND FUND EQUITY FUND EQUITY FUND FUND ----------- ------------ ------------- ----------- ------------- ASSETS: Investments, at value (identified cost $37,032,357, $78,048,482, $97,280,334, $30,959,630 and $12,159,943, respectively, including $9,777,401, $16,127,075, $609,354, $1,769,091 and $891,399 of securities, respectively) $609,354, $1,769,091 and $891,399 of securities loaned, respectively) $37,266,077 $ 82,258,386 $ 93,131,404 $35,855,441 $ 15,384,980 Receivables: Fund Share sold 27,143 151,235 237,729 100,324 64,000 Dividends and interest 290,263 779,407 100,721 22,791 54,635 Prepaid expenses 12,764 19,135 21,028 15,542 14,531 ----------- ------------ ------------- ----------- ------------ Total assets 37,596,247 83,208,163 93,490,882 35,994,098 15,518,146 ----------- ------------ ------------- ----------- ------------ LIABILITIES: Payables: Fund Share $ 4,500 $ 55,942 $ 3,491 $ -- $ 925 12b-1 fees 1,036 15,161 15,324 5,787 3,585 Due to Custodian 314 686 1,984 3,845 843 Due to Advisor 5,136 12,545 17,650 6,329 2,728 Accrued expenses 9,876 22,968 27,317 10,304 4,928 Payables upon return of securities loaned (Note 8) 10,049,875 16,628,865 651,202 1,843,847 904,700 ----------- ------------ ------------- ----------- ------------ Total liabilities 10,070,737 16,736,167 716,968 1,870,112 917,709 ----------- ------------ ------------- ----------- ------------ NET ASSETS $27,525,510 $ 66,471,996 $ 92,773,914 $34,123,986 $ 14,600,437 =========== ============ ============= =========== ============ NET ASSETS CONSIST OF: Paid-in Capital $27,151,151 $ 63,051,654 $ 105,121,170 $28,679,142 $ 26,010,636 Undistributed net investment income 26,478 88,196 8,257 5,514 14,782 Undistributed realized gain (loss) on investments 114,161 (877,758) (8,206,583) 543,519 (14,650,684) Net unrealized appreciation (depreciation) on: Investments 233,720 4,209,904 (4,148,930) 4,895,811 3,225,037 Translation of assets and liabilities in foreign currencies -- -- -- -- 666 ----------- ------------ ------------- ----------- ------------ NET ASSETS $27,525,510 $ 66,471,996 $ 92,773,914 $34,123,986 $ 14,600,437 =========== ============ ============= =========== ============ CLASS A SHARES (NOTE 1): Net assets for 71,431, 1,985,508, 2,531,851, 731,782 and 586,154 shares outstanding, respectively $ 1,816,293 $ 51,694,754 $ 65,074,771 $24,729,042 $ 11,358,918 Net asset value, offering and redemption price per Class A Share $ 25.43 $ 26.04 $ 25.70 $ 33.79 $ 19.38 CLASS C SHARES (NOTE 1): Net assets for 1,011,801, 565,402, 1,072,643, 276,071 and 166,266 shares outstanding, respectively $25,709,217 $ 14,777,242 $ 27,699,143 $ 9,394,944 $ 3,241,519 Net asset value, offering and redemption price per Class C share $ 25.41 $ 26.14 $ 25.82 $ 34.03 $ 19.50
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED MARCH 31, 2004 (UNAUDITED) - ------------------------------------------------------------------------------------------------------------------- SHORT-TERM BOND LARGE CAP SMALL CAP INTERNATIONAL BOND FUND FUND EQUITY FUND EQUITY FUND FUND --------- ---------- ----------- ----------- ----------- INVESTMENT INCOME: Interest $ 350,750 $1,479,260 $ 1,873 $ 1,070 $ 502 Dividends (net of foreign taxes withheld of $0 for the International Fund) -- -- 767,211 133,146 133,074 Other income 2,982 9,673 593 3,458 465 --------- ---------- ----------- ---------- ----------- Total Investment Income 353,732 1,488,933 769,677 137,674 134,041 --------- ---------- ----------- ---------- ----------- EXPENSES: Investment advisory fees (Note 4) 21,755 46,837 65,314 22,467 10,825 Administration fee (Note 4) 10,877 23,419 32,657 11,234 5,413 Accounting fees 13,706 29,507 41,147 14,155 6,819 Custodian fees 2,902 5,697 19,919 21,677 5,681 Transfer agency fees 5,874 12,646 17,635 6,066 2,923 Distribution fees - Class A (Note 5) 904 59,961 74,900 26,611 12,538 Trustee expense 3,204 7,365 9,600 866 1,843 Audit fees 5,138 6,785 12,300 759 -- Legal fees 2,565 5,524 7,774 3,218 1,319 Consulting fees 3,955 7,852 10,613 2,319 1,225 Pricing fees 1,691 5,908 8,771 3,327 4,147 Registration fees 9,224 13,167 14,937 11,199 9,938 Reports to shareholders 1,646 2,213 3,401 966 758 Other 7,935 16,419 22,201 7,296 2,252 --------- ---------- ----------- ---------- ----------- Total expenses 91,376 243,300 341,169 132,160 65,681 --------- ---------- ----------- ---------- ----------- Net investment income 262,356 1,245,633 428,508 5,514 68,360 --------- ---------- ----------- ---------- ----------- REALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain (loss) on: Investments 153,557 51,485 114,829 1,457,420 799,800 Foreign currency transactions -- -- -- -- (2) Net unrealized appreciation (depreciation) during the period on: Investments (101,690) 398,824 9,489,422 3,831,791 1,628,429 Translation of assets and liabilities in foreign currencies -- -- -- -- 159 --------- ---------- ----------- ---------- ----------- Net gain on investments and foreign currency 51,867 450,309 9,604,251 5,289,211 2,428,386 --------- ---------- ----------- ---------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 314,223 $1,695,942 $10,032,759 $5,294,725 $ 2,496,746 ========= ========== =========== ========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND STATEMENTS OF CHANGES IN NET ASSETS - ------------------------------------------------------------------------------------------------------------------------------------ FOR THE PERIOD ENDED MARCH 31, 2004 SHORT-TERM BOND LARGE CAP SMALL CAP INTERNATIONAL (UNAUDITED) BOND FUND FUND EQUITY FUND EQUITY FUND FUND ------------ ------------- ------------- ------------ ------------ DECREASE IN NET ASSETS Operations: Net investment income $ 262,356 $ 1,245,633 $ 428,508 $ 5,514 $ 68,360 Net realized gain (loss) on: Investments 153,557 51,485 114,829 1,457,420 799,800 Foreign currency transactions -- -- -- -- (2) Net unrealized appreciation (depreciation) during the period on: Investments (101,691) 398,824 9,489,422 3,831,791 1,628,429 Translation of assets and liabilities in foreign currencies -- -- -- -- 159 ------------ ------------- ------------- ------------ ------------ Net increase in net assets resulting from operations 314,222 1,695,942 10,032,759 5,294,725 2,496,746 ------------ ------------- ------------- ------------ ------------ Distributions to shareholders from: Net investment income Class A (8,572) (918,510) (273,847) -- (37,169) Class C (227,306) (290,556) (154,532) (4,563) (16,409) Net realized gain Class A (2,619) -- -- -- -- Class C (137,015) -- -- -- -- ------------ ------------- ------------- ------------ ------------ Total Distributions (375,512) (1,209,066) (428,379) (4,563) (53,578) ------------ ------------- ------------- ------------ ------------ Increase (decrease) in net assets from Fund share transactions (Note 6) (2,407,037) 4,718,195 2,235,478 3,390,306 (403,446) ------------ ------------- ------------- ------------ ------------ Increase (decrease) in net assets (2,468,327) 5,205,071 11,839,858 8,680,468 2,039,722 NET ASSETS: Beginning of period 29,993,837 $ 61,266,925 $ 80,934,056 $ 25,443,518 $ 12,560,715 ------------ ------------- ------------- ------------ ------------ End of period $ 27,525,510 $ 66,471,996 $ 92,773,914 $ 34,123,986 $ 14,600,437 ============ ============= ============= ============ ============ FOR THE YEAR ENDED SEPTEMBER 30, 2003 DECREASE IN NET ASSETS Operations: Net investment income $ 816,752 $ 2,666,432 $ 834,336 $ 64,271 $ 228,561 Net realized gain (loss) on: Investments 100,237 (166,756) (607,203) (263,926) (4,238,453) Redemption in kind -- 2,422,668 (43,646,584) (6,889,572) (19,731,356) Foreign currency transactions -- -- -- -- (17,216) Net unrealized appreciation (depreciation) during the period on: Investments (360,874) (3,285,505) 68,660,427 14,852,488 29,342,597 Translation of assets and liabilities in foreign currencies -- -- -- -- (2,809) ------------ ------------- ------------- ------------ ------------ Net increase in net assets resulting from operations 556,115 1,636,839 25,240,976 7,763,261 5,581,324 ------------ ------------- ------------- ------------ ------------ Distributions to shareholders from: Net investment income Class A (11,188) (1,903,612) (472,401) (30,686) (113,932) Class C (839,850) (777,583) (409,509) (29,022) (108,310) Net realized gain Class A (2,513) -- -- (395,330) -- Class C (259,990) -- -- (2,809,844) -- ------------ ------------- ------------- ------------ ------------ Total Distributions (1,113,541) (2,681,195) (881,910) (3,264,882) (222,242) ------------ ------------- ------------- ------------ ------------ Decrease in net assets from Fund share transactions (Note 6) (692,846) (41,307,173) (91,027,008) (53,895,508) (45,290,561) ------------ ------------- ------------- ------------ ------------ Decrease in net assets (1,250,272) (42,351,529) (66,667,942) (49,397,129) (39,931,479) NET ASSETS: Beginning of period 31,244,109 103,618,454 147,601,998 74,840,647 52,492,194 ------------ ------------- ------------- ------------ ------------ End of period $ 29,993,837 $ 61,266,925 $ 80,934,056 $ 25,443,518 $ 12,560,715 ============ ============= ============= ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND FINANCIAL HIGHLIGHTS SHORT-TERM BOND FUND - -------------------------------------------------------------------------------- The following tables include selected data for a share outstanding throughout each fiscal year or period and other performance information derived from financial statements. They should be read in conjunction with the financial statements and notes thereto.
CLASS A ------- For the For the For the For the For the Period Ended Year Ended Year Ended Year Ended Year Ended March 31, September 30, September 30, September 30, September 30, 2004 2003 2002 2001 2000 ------------ ------------- ------------- ------------- ------------- (Unaudited) NET ASSET VALUE - BEGINNING OF PERIOD $25.48 $25.87 $25.66 $24.70 $24.68 ----------- ------------- ------------- ------------- ------------- INVESTMENT OPERATIONS: Net investment income 0.18 * 0.52 * 1.04 * 1.14 1.35 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.08 * (0.11)* 0.13 * 1.21 (0.05) ----------- ------------- ------------- ------------- ------------- Total from investment operations 0.26 0.41 1.17 2.35 1.30 ----------- ------------- ------------- ------------- ------------- Distributions: From net investment income (0.19) (0.57) (0.96) (1.39) (1.28) From net realized capital gain (0.12) (0.22) -- -- -- From return of capital -- (0.01) -- -- -- ----------- ------------- ------------- -------------- ------------- Total distributions (0.31) (0.80) (0.96) (1.39) (1.28) ----------- ------------- ------------- -------------- ------------- NET ASSET VALUE - END OF PERIOD $25.43 $25.48 $25.87 $25.66 $24.70 =========== ============= ============= ============== ============= TOTAL RETURN 1.01% 1.61% 4.68% 9.74% 5.42% Ratios of expenses to average net assets: before fee waivers 0.87% (1) 0.88% 0.81% 0.74% 0.72% after fee waivers 0.87% (1) 0.88% 0.81% 0.74% 0.72% Ratios of net investment income to average net assets: before fee waivers 1.57% (1) 2.00% 4.04% 5.32% 5.25% after fee waivers 1.57% (1) 2.00% 4.04% 5.32% 5.25% Portfolio turnover rate 61.76% 776.35% 27.77% 36.76% 55.28% Net assets, end of period $1,816,293 $636,227 $292,996 $497,078 $26,583
(1) Annualized * Based on the average daily number of shares outstanding throughout each period THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND FINANCIAL HIGHLIGHTS SHORT-TERM BOND FUND - -------------------------------------------------------------------------------- The following tables include selected data for a share outstanding throughout each fiscal year or period and other performance information derived from financial statements. They should be read in conjunction with the financial statements and notes thereto.
CLASS C ------- For the For the For the For the For the Period Ended Year Ended Year Ended Year Ended Year Ended March 31, September 30, September 30, September 30, September 30, 2004 2003 2002 2001 2000 ------------ ------------- ------------- ------------- ------------- (Unaudited) NET ASSET VALUE - BEGINNING OF PERIOD $25.46 $25.85 $25.70 $24.74 $24.72 -------------- ------------- ------------- ------------- ------------- INVESTMENT OPERATIONS: Net investment income 0.23 * 0.58 * 1.09 1.44 1.35 Net realized and unrealized gain (loss) on investments and foreign currency transactions 0.05 * (0.11)* 0.15 0.97 -- -------------- ------------- ------------- ------------- ------------- Total from investment operations 0.28 0.47 1.24 2.41 1.35 -------------- ------------- ------------- ------------- ------------- Distributions: From net investment income (0.21) (0.63) (1.09) (1.45) (1.33) From net realized capital gain (0.12) (0.22) -- -- -- From return of capital -- (0.01) -- -- -- -------------- ------------- ------------- ------------- ------------- Total distributions (0.33) (0.86) (1.09) (1.45) (1.33) -------------- ------------- ------------- ------------- ------------- NET ASSET VALUE - END OF PERIOD $25.41 $25.46 $25.85 $25.70 $24.74 ============== ============= ============= ============= ============= TOTAL RETURN 1.11% 1.86% 4.97% 9.98% 5.63% Ratios of expenses to average net assets: before fee waivers 0.62% (1) 0.63% 0.56% 0.49% 0.47% after fee waivers 0.62% (1) 0.63% 0.56% 0.49% 0.47% Ratios of net investment income to average net assets: before fee waivers 1.82% (1) 2.25% 4.29% 5.57% 5.50% after fee waivers 1.82% (1) 2.25% 4.29% 5.57% 5.50% Portfolio turnover rate 61.76% 776.35% 27.77% 36.76% 55.28% Net assets, end of period $25,709,217 $29,357,610 $30,951,113 $27,759,257 $28,913,208
(1) Annualized * Based on the average daily number of shares outstanding throughout each period THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND FINANCIAL HIGHLIGHTS BOND FUND - -------------------------------------------------------------------------------- The following tables include selected data for a share outstanding throughout each fiscal year or period and other performance information derived from financial statements. They should be read in conjunction with the financial statements and notes thereto.
CLASS A ------- For the For the For the For the For the Period Ended Year Ended Year Ended Year Ended Year Ended March 31, September 30, September 30, September 30, September 30, 2004 2003 2002 2001 2000 ------------ ------------- ------------- ------------- ------------- (Unaudited) NET ASSET VALUE - BEGINNING OF PERIOD $25.84 $25.91 $25.08 $23.51 $23.36 ------------ ------------- ------------- ------------ ------------- INVESTMENT OPERATIONS: Net investment income 0.52 1.05 * 1.31 1.33 1.27 Net realized and unrealized gain on investments and foreign currency transactions 0.17 0.05 * 0.81 1.57 0.11 ------------ ------------- ------------- ------------ ------------- Total from investment operations 0.69 1.10 2.12 2.90 1.38 ------------ ------------- ------------- ------------ ------------- Distributions: From net investment income (0.49) (1.17) (1.29) (1.33) (1.23) ------------ ------------- ------------- ------------ ------------- Total distributions (0.49) (1.17) (1.29) (1.33) (1.23) ------------ ------------- ------------- ------------ ------------- NET ASSET VALUE - END OF PERIOD $26.04 $25.84 $25.91 $25.08 $23.51 ============ ============= ============= ============ ============= TOTAL RETURN 2.68% 4.33% 8.76% 12.56% 6.08% Ratios of expenses to average net assets: before fee waivers 0.84% (1) 0.86% 0.67% 0.64% 0.66% after fee waivers 0.84% (1) 0.86% 0.67% 0.64% 0.66% Ratios of net investment income to average net assets: before fee waivers 3.93% (1) 4.10% 5.10% 5.39% 5.31% after fee waivers 3.93% (1) 4.10% 5.10% 5.39% 5.31% Portfolio turnover rate 5.83% 94.61% 5.09% 8.94% 25.64% Net assets, end of period $51,694,754 $46,473,576 $33,961,123 $17,461,376 $6,521,024
(1) Annualized * Based on the average daily number of shares outstanding throughout each period THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND FINANCIAL HIGHLIGHTS BOND FUND - -------------------------------------------------------------------------------- The following tables include selected data for a share outstanding throughout each fiscal year or period and other performance information derived from financial statements. They should be read in conjunction with the financial statements and notes thereto.
CLASS C ------- For the For the For the For the For the Period Ended Year Ended Year Ended Year Ended Year Ended March 31, September 30, September 30, September 30, September 30, 2004 2003 2002 2001 2000 ------------ ------------- ------------- ------------- ------------- (Unaudited) NET ASSET VALUE - BEGINNING OF PERIOD $25.94 $25.99 $25.16 $23.57 $23.40 ------------ ------------- ------------- ------------ ------------- INVESTMENT OPERATIONS: Net investment income 0.55 1.14 * 1.38 1.38 * 1.30 Net realized and unrealized gain on investments and foreign currency transactions 0.17 0.04 * 0.80 1.59 * 0.14 ------------ ------------- ------------- ------------ ------------- Total from investment operations 0.72 1.18 2.18 2.97 1.44 ------------ ------------- ------------- ------------ ------------- Distributions: From net investment income (0.52) (1.23) (1.35) (1.38) (1.27) ------------ ------------- ------------- ------------ ------------- Total distributions (0.52) (1.23) (1.35) (1.38) (1.27) ------------ ------------- ------------- ------------ ------------- NET ASSET VALUE - END OF PERIOD $26.14 $25.94 $25.99 $25.16 $23.57 ============ ============= ============= ============ ============= TOTAL RETURN 2.80% 4.64% 8.98% 12.86% 6.34% Ratios of expenses to average net assets: before fee waivers 0.59% (1) 0.61% 0.42% 0.39% 0.41% after fee waivers 0.59% (1) 0.61% 0.42% 0.39% 0.41% Ratios of net investment income to average net assets: before fee waivers 4.18% (1) 4.35% 5.35% 5.64% 5.56% after fee waivers 4.18% (1) 4.35% 5.35% 5.64% 5.56% Portfolio turnover rate 5.83% 94.61% 5.09% 8.94% 25.64% Net assets, end of period $14,777,242 $14,793,349 $69,657,331 $74,356,919 $72,055,471
(1) Annualized * Based on the average daily number of shares outstanding throughout each period THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND FINANCIAL HIGHLIGHTS LARGE CAP EQUITY FUND - -------------------------------------------------------------------------------- The following tables include selected data for a share outstanding throughout each fiscal year or period and other performance information derived from financial statements. They should be read in conjunction with the financial statements and notes thereto.
CLASS A ------- For the For the For the For the For the Period Ended Year Ended Year Ended Year Ended Year Ended March 31, September 30, September 30, September 30, September 30, 2004 2003 2002 2001 2000 ------------ ------------- ------------- ------------- ------------- (Unaudited) NET ASSET VALUE - BEGINNING OF PERIOD $22.91 $18.76 $24.08 $34.49 $31.75 ------------ ------------- ------------- ------------ ------------- INVESTMENT OPERATIONS: Net investment income 0.11 * 0.22 0.23 * 0.19 * 0.16 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.79 * 4.18 (5.20)* (9.10)* 3.68 ------------ ------------- ------------- ------------ ------------- Total from investment operations 2.90 4.40 (4.97) (8.91) 3.84 ------------ ------------- ------------- ------------ ------------- Distributions: From net investment income (0.11) (0.25) (0.23) (0.20) (0.22) From net realized capital gain -- -- (0.12) (1.30) (0.88) ------------ ------------- ------------- ------------ ------------- Total distributions (0.11) (0.25) (0.35) (1.50) (1.10) ------------ ------------- ------------- ------------ ------------- NET ASSET VALUE - END OF PERIOD $25.70 $22.91 $18.76 $24.08 $34.49 ============ ============= ============= ============ ============= TOTAL RETURN 12.68% 23.57% (20.97)% (26.64)% 12.07% Ratios of expenses to average net assets: before fee waivers 0.86% (1) 0.79% 0.64% 0.62% 0.63% after fee waivers 0.86% (1) 0.79% 0.64% 0.62% 0.63% Ratios of net investment income to average net assets: before fee waivers 0.91% (1) 0.99% 0.89% 0.66% 0.54% after fee waivers 0.91% (1) 0.99% 0.89% 0.66% 0.54% Portfolio turnover rate 19.42% 43.12% 9.76% 12.70% 36.64% Net assets, end of period $65,074,771 $50,585,169 $26,477,099 $19,301,451 $10,619,367
(1) Annualized * Based on the average daily number of shares outstanding throughout each period THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND FINANCIAL HIGHLIGHTS LARGE CAP EQUITY FUND - -------------------------------------------------------------------------------- The following tables include selected data for a share outstanding throughout each fiscal year or period and other performance information derived from financial statements. They should be read in conjunction with the financial statements and notes thereto.
CLASS C ------- For the For the For the For the For the Period Ended Year Ended Year Ended Year Ended Year Ended March 31, September 30, September 30, September 30, September 30, 2004 2003 2002 2001 2000 ------------ ------------- ------------- ------------- ------------- (Unaudited) NET ASSET VALUE - BEGINNING OF PERIOD $23.01 $18.82 $24.15 $34.57 $31.79 ------------ ------------ ------------- ------------ ------------- INVESTMENT OPERATIONS: Net investment income 0.15 * 0.26 * 0.28 * 0.27 * 0.26 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.80 * 4.22 * (5.22)* (9.13)* 3.67 ------------ ------------ ------------- ------------ ------------- Total from investment operations 2.95 4.48 (4.94) (8.86) 3.93 ------------ ------------ ------------- ------------ ------------- Distributions: From net investment income (0.14) (0.29) (0.27) (0.26) (0.27) From net realized capital gain -- -- (0.12) (1.30) (0.88) ----------- ------------ ------------- ------------ ------------- Total distributions (0.14) (0.29) (0.39) (1.56) (1.15) ----------- ------------ ------------- ------------ ------------- NET ASSET VALUE - END OF PERIOD $25.82 $23.01 $18.82 $24.15 $34.57 =========== ============ ============= ============ ============= TOTAL RETURN 12.86% 23.92% (20.80)% (26.42)% 12.34% Ratios of expenses to average net assets: before fee waivers 0.61% (1) 0.54% 0.39% 0.37% 0.38% after fee waivers 0.61% (1) 0.54% 0.39% 0.37% 0.38% Ratios of net investment income to average net assets: before fee waivers 1.16% (1) 1.24% 1.14% 0.91% 0.79% after fee waivers 1.16% (1) 1.24% 1.14% 0.91% 0.79% Portfolio turnover rate 19.42% 43.12% 9.76% 12.70% 36.64% Net assets, end of period $27,699,143 $30,348,887 $121,124,899 $153,664,795 $187,806,297
(1) Annualized * Based on the average daily number of shares outstanding throughout each period THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND FINANCIAL HIGHLIGHTS SMALL CAP EQUITY FUND - -------------------------------------------------------------------------------- The following tables include selected data for a share outstanding throughout each fiscal year or period and other performance information derived from financial statements. They should be read in conjunction with the financial statements and notes thereto.
CLASS A ------- For the For the For the For the For the Period Ended Year Ended Year Ended Year Ended Year Ended March 31, September 30, September 30, September 30, September 30, 2004 2003 2002 2001 2000 ------------ ------------- ------------- ------------- ------------- (Unaudited) NET ASSET VALUE - BEGINNING OF PERIOD $28.06 $23.40 $26.51 $34.52 $29.17 ------------ ------------- ----------- ------------ ----------- INVESTMENT OPERATIONS: Net investment income (loss) (0.01) 0.04 * 0.05 0.05 * 0.01 Net realized and unrealized gain (loss) on investments and foreign currency transactions 5.74 5.68 * 0.09 (3.82)* 6.94 ------------ ------------- ----------- ------------ ----------- Total from investment operations 5.73 5.72 0.14 (3.77) 6.95 ------------ ------------- ----------- ------------ ----------- Distributions: From net investment income -- (0.06) (0.07) (0.05) (0.05) From net realized capital gain -- (1.00) (3.18) (4.19) (1.55) ------------ ------------- ----------- ------------ ----------- Total distributions -- (1.06) (3.25) (4.24) (1.60) ------------ ------------- ----------- ------------ ----------- NET ASSET VALUE - END OF PERIOD $33.79 $28.06 $23.40 $26.51 $34.52 ============ ============= =========== ============ =========== TOTAL RETURN 20.42% 25.31% (1.66)% (12.00)% 24.68% Ratios of expenses to average net assets: before fee waivers 0.95% (1) 0.85% 0.70% 0.69% 0.66% after fee waivers 0.95% (1) 0.85% 0.70% 0.69% 0.66% Ratios of net investment income to average net assets: before fee waivers (0.03) (1) 0.12% 0.15% 0.14% 0.09% after fee waivers (0.03) (1) 0.12% 0.15% 0.14% 0.09% Portfolio turnover rate 30.69% 42.18% 35.33% 49.43% 53.16% Net assets, end of period $24,729,042 $16,688,658 $8,989,110 $5,216,136 $2,428,801
(1) Annualized * Based on the average daily number of shares outstanding throughout each period THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND FINANCIAL HIGHLIGHTS SMALL CAP EQUITY FUND - -------------------------------------------------------------------------------- The following tables include selected data for a share outstanding throughout each fiscal year or period and other performance information derived from financial statements. They should be read in conjunction with the financial statements and notes thereto.
CLASS C ------- For the For the For the For the For the Period Ended Year Ended Year Ended Year Ended Year Ended March 31, September 30, September 30, September 30, September 30, 2004 2003 2002 2001 2000 ------------ ------------- ------------- ------------- ------------- (Unaudited) NET ASSET VALUE - BEGINNING OF PERIOD $28.23 $23.47 $26.59 $34.59 $29.21 ------------ ------------ ------------ ------------ ------------ INVESTMENT OPERATIONS: Net investment income 0.03 * 0.08 * 0.13 0.12 0.11 Net realized and unrealized gain (loss) on investments and foreign currency transactions 5.79 * 5.78 * 0.07 (3.81) 6.93 ------------ ------------ ------------ ------------ ------------ Total from investment operations 5.82 5.86 0.20 (3.69) 7.04 ------------ ------------ ------------ ------------ ------------ Distributions: From net investment income (0.02) (0.10) (0.14) (0.12) (0.11) From net realized capital gain -- (1.00) (3.18) (4.19) (1.55) ------------ ------------ ------------ ------------ ------------ Total distributions (0.02) (1.10) (3.32) (4.31) (1.66) ------------ ------------ ------------ ------------ ------------ NET ASSET VALUE - END OF PERIOD $34.03 $28.23 $23.47 $26.59 $34.59 ============ ============ ============ ============ ============ TOTAL RETURN 20.61% 25.85% (1.46)% (11.75)% 24.98% Ratios of expenses to average net assets: before fee waivers 0.70% (1) 0.60% 0.45% 0.44% 0.41% after fee waivers 0.70% (1) 0.60% 0.45% 0.44% 0.41% Ratios of net investment income to average net assets: before fee waivers 0.22% (1) 0.37% 0.40% 0.39% 0.34% after fee waivers 0.22% (1) 0.37% 0.40% 0.39% 0.34% Portfolio turnover rate 30.69% 42.18% 35.33% 49.43% 53.16% Net assets, end of period $9,394,944 $8,754,860 $65,851,537 $70,580,689 $88,360,329
(1) Annualized * Based on the average daily number of shares outstanding throughout each period THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND FINANCIAL HIGHLIGHTS INTERNATIONAL FUND - -------------------------------------------------------------------------------- The following tables include selected data for a share outstanding throughout each fiscal year or period and other performance information derived from financial statements. They should be read in conjunction with the financial statements and notes thereto.
CLASS A ------- For the Period For the Year For the Year For the Year For the Year Ended Ended Ended Ended Ended March 31, September 30, September 30, September 30, September 30, 2004 2003 2002 2001 2000 ----------------- --------------- --------------- --------------- ---------------- (Unaudited) NET ASSET VALUE - BEGINNING OF PERIOD $16.29 $14.55 $17.62 $26.03 $30.54 ------------- ------------- ------------- ------------ ------------ INVESTMENT OPERATIONS: Net investment income 0.08 0.20 0.21 0.33 * 1.70 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.08 1.78 (3.06) (8.14)* (1.64) ------------- ------------- ------------- ------------ ------------ Total from investment operations 3.16 1.98 (2.85) (7.81) 0.06 ------------- ------------- ------------- ------------ ------------ Distributions: From net investment income (0.07) (0.22) (0.22) (0.37) (1.14) From net realized capital gain -- -- -- (0.23) (3.43) From return of capital -- (0.02) -- -- -- ------------- ------------- ------------- ------------ ------------ Total distributions (0.07) (0.24) (0.22) (0.60) (4.57) ------------- ------------- ------------- ------------ ------------ NET ASSET VALUE - END OF PERIOD $19.38 $16.29 $14.55 $17.62 $26.03 ============= ============= ============= ============ ============ TOTAL RETURN 19.38% 13.68% (16.36)% (30.39) (1.22)% Ratios of expenses to average net assets: before fee waivers 0.99% (1) 1.10% 0.77% 0.71% 0.71% after fee waivers 0.99% (1) 1.10% 0.77% 0.71% 0.71% Ratios of net investment income to average net assets: before fee waivers 0.87% (1) 0.95% 1.12% 1.62% 4.44% after fee waivers 0.87% (1) 0.95% 1.12% 1.62% 4.44% Portfolio turnover rate 20.11% 414.62% 29.48% 68.11% 48.13% Net assets, end of period $11,358,918 $8,101,972 $4,616,210 $3,331,656 $1,748,773
(1) Annualized * Based on the average daily number of shares outstanding throughout each period THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND FINANCIAL HIGHLIGHTS INTERNATIONAL FUND - -------------------------------------------------------------------------------- The following tables include selected data for a share outstanding throughout each fiscal year or period and other performance information derived from financial statements. They should be read in conjunction with the financial statements and notes thereto.
CLASS C ------- For the Period For the Year For the Year For the Year For the Year Ended Ended Ended Ended Ended March 31, September 30, September 30, September 30, September 30, 2004 2003 2002 2001 2000 ----------------- --------------- --------------- --------------- ---------------- (Unaudited) NET ASSET VALUE - BEGINNING OF PERIOD $16.38 $14.58 $17.65 $26.06 $30.55 ------------- ------------- ------------- ------------- ------------- INVESTMENT OPERATIONS: Net investment income 0.10 * 0.37 0.25 0.41 1.37 Net realized and unrealized gain (loss) on investments and foreign currency transactions 3.11 * 1.70 (3.07) (8.17) (1.24) ------------- ------------- ------------- ------------- ------------- Total from investment operations 3.21 2.07 (2.82) (7.76) 0.13 ------------- ------------- ------------- ------------- ------------- Distributions: From net investment income (0.09) (0.25) (0.25) (0.42) (1.19) From net realized capital gain -- -- -- (0.23) (3.43) From return of capital -- (0.02) -- -- -- ------------- ------------- ------------- ------------- ------------- Total distributions (0.09) (0.27) (0.25) (0.65) (4.62) ------------- ------------- ------------- ------------- ------------- NET ASSET VALUE - END OF PERIOD $19.50 $16.38 $14.58 $17.65 $26.06 ============= ============= ============= ============= ============= TOTAL RETURN 19.61% 14.26% (16.18)% (30.19)% (0.98)% Ratios of expenses to average net assets: before fee waivers 0.74% (1) 0.85% 0.52% 0.46% 0.46% after fee waivers 0.74% (1) 0.85% 0.52% 0.46% 0.46% Ratios of net investment income to average net assets: before fee waivers 1.12% (1) 1.20% 1.37% 1.87% 4.69% after fee waivers 1.12% (1) 1.20% 1.37% 1.87% 4.69% Portfolio turnover rate 20.11% 414.62% 29.48% 68.11% 48.13% Net assets, end of period $3,241,519 $4,458,743 $47,875,984 $58,468,898 $72,121,697
(1) Annualized * Based on the average daily number of shares outstanding throughout each period THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. ================================================================================ CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 2004 (UNAUDITED) ================================================================================ (1) ORGANIZATION The Capstone Social Ethics and Religious Values Fund (the "Trust") was organized as a Massachusetts business trust on April 13, 1998 and is registered under the Investment Company Act of 1940 (the "1940 Act") as a diversified open-end management investment company. The Trust currently consists of five diversified series: the Short-Term Bond Fund, the Bond Fund, the Large Cap Equity Fund, the Small Cap Equity Fund, and the International Fund (each a "Fund" and collectively the "Funds"). Between the date of organization and October 1, 1998, the Funds had no operations other than those relating to organizational matters and the sale of 1 Class A share and 1 Class C share of the Large Cap Equity Fund to Capstone Asset Management Company ("Capstone"), the Trust's adviser and administrator for $50, and the sale of 4,000 Class C shares of the Large Cap Equity Portfolio to another shareholder for $100,000. On October 1, 1998 each of the Funds acquired the net assets of separate Portfolios of a tax-exempt business trust which had been managed by Capstone. Each of these Portfolios had been managed following investment objectives similar to those of the Funds and their net assets consisted principally of investment securities. Class C shares of each Fund issued to affect these acquisitions were distributed to each of the Portfolios' beneficiaries in complete liquidation of the business trust. The Trust is authorized to issue an unlimited number of shares of beneficial interest of $1.00 par value. The Fund currently offers two Classes of shares ("Class A" and "Class C"). Each Class of shares has equal rights as to earnings, assets and voting privileges, except that each Class bears different distribution expenses. Each Class of shares has exclusive voting rights with respect to matters that affect just that Class. Income, expenses (other than expenses attributable to a specific Class) and realized and unrealized gains or losses on investments are allocated to each Class of shares based on its relative net assets. (2) INVESTMENT OBJECTIVES As a matter of fundamental investment policy, each of the Funds will invest in companies that are managed in a socially responsible manner, reflecting certain ethical and religious values. Accordingly, the Funds will not invest in companies whose primary business is the manufacturing, operation or distribution of alcohol, caffeinated beverages or tobacco products, meat packing, pornography, or casinos and other gambling concerns. The Short-Term Bond Fund's objective is to provide current income and relative capital stability by attempting to match the price and yield performance (before expenses) of a blended short-term index consisting of one-third U.S. Treasury securities, one-third U.S. government securities and one-third investment grade corporate obligations with maximum maturities of three years. The Bond Fund's objective is to provide current income by attempting to match the price and yield performance (before expenses) of the Lehman Brothers Government/Credit Bond Index. The Bond Fund will invest primarily in obligations of the U.S. Government, its agencies and instrumentalities and investment grade corporate obligations having a broad range of maturities. ================================================================================ CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND NOTES TO FINANCIAL STATEMENTS - (CONTINUED) MARCH 31, 2004 (UNAUDITED) ================================================================================ (2) INVESTMENT OBJECTIVES - (CONTINUED) The Large Cap Equity Fund's objective is to provide capital growth and income by attempting to match the performance, before expenses, of a widely recognized index of large cap equities, which will be specified by the Advisory Committee from time to time. The Large Cap Equity Fund will invest primarily in the common stocks of large companies whose securities are widely held and have an active trading market. The Small Cap Equity Fund's objective is to provide capital appreciation by attempting to match the performance, before expenses, of a widely recognized index of small cap equities, which will be specified by the Advisory Committee from time to time. The Small Cap Equity Fund will invest primarily in equity securities of the type that are included in the index. The International Fund's objective is to provide capital appreciation by attempting to match the performance and yield characteristics of the Morgan Stanley Capital International Europe, Australia, Far East Index, net of withholding taxes. The International Fund will invest primarily in securities with characteristics generally comparable to those included in this index or whose performance is expected to be comparable. (3) SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. These accounting policies are in accordance with accounting principles generally accepted in the United States of America. A. SECURITY VALUATION Portfolio equity securities which are primarily traded on security exchanges are valued at the last sale price on that exchange or, if there is no recent last sale price available, at the last current bid quotation. A security which is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. All other equity securities not so traded are valued at the last current bid quotation prior to the time of valuation. Money market securities held by the Funds are valued using the amortized cost method of valuation, which in the opinion of the Board of Trustees reflects fair value. Other debt securities are valued by using market quotations or independent pricing services which use prices provided by market makers or estimates of market values obtained from yield data relating to instruments or securities with similar characteristics. Other securities, including restricted securities, and other assets are valued at fair value as determined in good faith by the Board of Trustees. B. FOREIGN CURRENCY TRANSLATION Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities and income items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. ================================================================================ CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND NOTES TO FINANCIAL STATEMENTS - (CONTINUED) MARCH 31, 2004 (UNAUDITED) ================================================================================ (3) SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) The Funds do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest and foreign withholding taxes, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in foreign exchange rates on foreign currency denominated assets and liabilities other than investments in securities held at the end of the reporting period. C. FEDERAL INCOME TAXES It is the policy of the Funds to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of their taxable income to their shareholders in a manner which results in no tax to the Funds. Therefore, no federal income or excise tax provisions are required. Income and capital gains of the Funds are determined in accordance with both tax regulations and accounting principles generally accepted in the United States of America. Such may result in temporary and permanent differences between tax basis earnings and earnings reported for financial statement purposes. Temporary differences that result in over-distributions for financial statement purposes are classified as distributions in excess of net investment income or accumulated net realized gains. Permanent differences in the recognition of earnings are reclassified to additional paid-in capital. Distributions in excess of tax-basis earnings are recorded as return of capital. D. SECURITY TRANSACTIONS, INCOME AND DISTRIBUTIONS Security transactions are accounted for on the trade date. Realized gains and losses on security transactions are determined on the specific identification basis. Interest income on debt securities is recorded on the accrual basis. Discounts and premiums on debt securities are amortized to income over their respective lives. Dividend income and distributions to shareholders are recorded on the ex-dividend date. E. FORWARD EXCHANGE CONTRACTS The Funds may enter into forward exchange contracts to hedge against foreign currency exchange risks. These contracts are valued daily and any appreciation or depreciation therein is included in the statement of assets and liabilities. Realized and unrealized gains and losses are included in the statement of operations. As of March 31, 2004, there were no forward exchange contracts outstanding. ================================================================================ CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND NOTES TO FINANCIAL STATEMENTS - (CONTINUED) MARCH 31, 2004 (UNAUDITED) ================================================================================ (3) SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) F. FUTURES CONTRACTS The Funds may invest in financial futures contracts. Upon entering into a futures contract, the Fund is required to deposit, with its futures broker, cash or other securities equal to a certain percentage of the futures contract amount ("initial margin"). During the term of the futures contract, payments are exchanged daily between the Fund and the futures broker in amounts equal to the appreciation or depreciation in the value of the futures contract ("variation margin"). The Funds recognize gains or losses equal to the variation margin payments paid or received. Futures contracts involve market risks in excess of the amounts recognized in the statement of assets and liabilities. Additionally, there is a risk that a Fund may not be able to enter into a closing transaction because of an illiquid secondary market. As of March 31, 2004, there were no future contracts outstanding. G. REPURCHASE AGREEMENTS In connection with transactions in repurchase agreements, it is the Funds' policy that their custodian bank take possession of the underlying collateral securities, the fair value of which must be equal to the principal amount of the repurchase agreement including accrued interest throughout the term of the repurchase agreement. If the seller defaults and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited. H. ORGANIZATION EXPENSES Capstone has agreed to bear all of the costs incurred in connection with the organization and registration of the Trust's shares. All ongoing registration expenses will be paid by the Funds. I. SECURITY LOANS The Funds may receive fees or retain a portion of interest on the cash received as collateral for lending securities. A Fund also continues to receive interest or dividends on the securities loaned. Securities loaned are secured by collateral whose market value must always exceed the market value of the securities loaned plus accrued interest. Gains or losses in the market price of the securities loaned that may occur during the term of the loan are reflected in the value of the Fund. J. USE OF ESTIMATES In preparing financial statements in accordance with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. ================================================================================ CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND NOTES TO FINANCIAL STATEMENTS - (CONTINUED) MARCH 31, 2004 (UNAUDITED) ================================================================================ (4) INVESTMENT ADVISER AND ADMINISTRATOR Capstone serves as each Fund's adviser and administrator. Pursuant to the terms of the Investment Advisory Agreement, Capstone shall have full discretion to manage the assets of the Funds in accordance with their investment objectives. As compensation for its services each Fund pays Capstone, on a monthly basis, an investment advisory fee. The advisory fees for the Funds are calculated at the annual rate of 0.15% on the first $500 million of the Funds' collective average daily net assets and then allocated to each Fund based upon relative net assets. The rate declines to 0.10% on the next $250 million of average daily net assets, 0.075% on the next $250 million of average daily net assets, and to 0.05% on collective average daily net assets in excess of $1 billion. Pursuant to the terms of the Administration Agreement, Capstone will supervise the Funds' daily business affairs, coordinate the activities of persons providing services to the Funds, and furnish office space and equipment to the Funds. As compensation for its services Capstone receives a monthly fee from each Fund calculated at the annual rate of 0.075% of each Fund's average daily net assets. (5) DISTRIBUTION PLAN AND OTHER TRANSACTIONS WITH AFFILIATES Capstone Asset Planning Company (the "Distributor") serves as the Trust's principal underwriter pursuant to a Distribution Agreement. The Distributor is an affiliate of Capstone. The Class A shares of each Fund have adopted a Service and Distribution Plan (the "Plan") pursuant to Rule 12(b)-1 under the 1940 Act. The Plan provides that the Class A shares will make payments to the Distributor to compensate the Distributor for expenditures incurred by it in connection with the distribution of Class A shares and for the provision of certain stockholder services including but not limited to the payment of compensation to security dealers and other financial organizations to obtain various distribution related and/or administrative services for the Fund. As compensation for its services the Distributor receives a monthly fee calculated at the annual rate of 0.25% of the average daily net assets of the Class A shares of each Fund. Certain officers of the Trust are also officers of Capstone and the Distributor. (6) SHARES OF CAPITAL STOCK All Funds - The authorized capital stock of the funds is unlimited in shares, with a par value of $1.00 per share. Transactions in shares of capital stock, for the six month period from October 1, 2003 to March 31, 2004 were as follows: ================================================================================ CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND NOTES TO FINANCIAL STATEMENTS - (CONTINUED) MARCH 31, 2004 (UNAUDITED) ================================================================================ (6) SHARES OF CAPITAL STOCK - (CONTINUED)
CLASS A CLASS C SHARES DOLLARS SHARES DOLLARS ------ ------- ------ ------- SHORT-TERM BOND FUND: Sold 54,239 $ 1,388,356 9,214 $ 234,513 Reinvested 441 11,188 14,392 364,141 Redeemed (8,222) (213,828) (165,119) (4,191,407) ---------- ------------ ----------- ------------- Net Increase (decrease) 46,458 $ 1,185,716 (141,513) $ (3,592,753) ========== ============ =========== ============= BOND FUND: Sold 276,207 $ 7,116,447 16,777 $ 439,232 Reinvested 35,522 917,705 177,743 6,855 Redeemed (124,688) (3,193,300) (28,561) (739,632) ---------- ------------ ----------- ------------- Net Increase (decrease) 187,041 $ 4,840,852 (4,929) $ (122,657) ========== ============ =========== ============= LARGE CAP EQUITY FUND: Sold 432,026 $10,836,952 99,293 $ 2,414,321 Reinvested 10,928 273,310 138,523 5,513 Redeemed (119,579) (3,015,651) (351,006) (8,411,977) ---------- ------------ ----------- ------------- Net Increase 323,375 $ 8,094,611 (246,200) $ (5,859,133) ========== ============ =========== ============= SMALL CAP EQUITY FUND: Sold 203,007 $ 6,506,087 84,571 $ 2,596,573 Reinvested -- -- 138 4,403 Redeemed (66,055) (2,127,569) (118,710) (3,589,188) ---------- ------------ ----------- ------------- Net Increase 136,952 $ 4,378,518 (34,001) $ (988,212) ========== ============ =========== ============= INTERNATIONAL FUND: Sold 104,536 $ 1,936,318 32,702 $ 624,199 Reinvested 1,984 37,109 873 16,391 Redeemed (17,719) (337,432) (139,541) (2,680,031) ---------- ------------ ----------- ------------- Net Increase (decrease) 88,801 $ 1,635,995 (105,966) $ (2,039,441) ========== ============ =========== =============
All Funds - The authorized capital stock of the funds is unlimited in shares, with a par value of $1.00 per share. Transactions in shares of capital stock, for the year from October 1, 2002 to September 30, 2003 were as follows:
CLASS A CLASS C SHARES DOLLARS SHARES DOLLARS ------ ------- ------ ------- SHORT-TERM BOND FUND: Sold 58,780 $ 1,500,998 18,735,978 $ 480,899,879 Reinvested 523 13,394 38,023 972,070 Redeemed (45,655) (1,165,507) (18,817,815) (482,913,680) -------- ------------ ------------ -------------- Net Increase (decrease) 13,649 $ 348,885 (43,814) $ (1,041,731) ======== ============ ============ ==============
================================================================================ CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND NOTES TO FINANCIAL STATEMENTS - (CONTINUED) MARCH 31, 2004 (UNAUDITED) ================================================================================ (6) SHARES OF CAPITAL STOCK - (CONTINUED)
CLASS A CLASS C SHARES DOLLARS SHARES DOLLARS ------ ------- ------ ------- BOND FUND: Sold 957,471 $ 24,788,162 5,194,084 $ 135,291,364 Reinvested 73,366 1,891,367 16,843 436,435 Redeemed (543,316) (14,037,125) (7,320,645) (189,677,376) ---------- ------------- -------------- -------------- Net Increase (decrease) 487,521 $ 12,642,404 (2,109,718) $ (53,949,577) ========== ============= ============== ============== LARGE CAP EQUITY FUND: Sold 919,898 $ 19,652,394 242,399 $ 4,927,528 Reinvested 22,184 472,363 15,889 340,029 Redeemed (145,237) (3,115,635) (5,375,371) (113,303,687) ---------- ------------- -------------- -------------- Net Increase (decrease) 796,845 $ 17,009,122 (5,117,083) $(108,036,130) ========== ============= ============= ============== SMALL CAP EQUITY FUND: Sold 248,655 $ 6,173,194 30,963 $ 835,036 Reinvested 17,977 425,444 57,548 1,371,184 Redeemed (56,008) (1,389,799) (2,583,735) (61,310,567) ---------- ------------- -------------- -------------- Net Increase (decrease) 210,624 $ 5,208,839 (2,495,224) $ (59,104,347) ========== ============= ============== ============== INTERNATIONAL FUND: Sold 1,151,348 $ 17,952,278 39,961,640 $ 626,002,219 Reinvested 7,126 113,933 6,132 95,185 Redeemed (978,346) (15,293,361) (42,978,264) (674,160,815) ---------- ------------- -------------- -------------- Net Increase (decrease) 180,128 $ 2,772,850 (3,010,492) $ (48,063,411) ========== ============= ============== ==============
(7) INVESTMENT TRANSACTIONS Purchases and sales of investment securities (excluding short-term securities) by the Funds for the period ended March 31, 2004 were as follows: - -------------------------------------------------------------------------------- PURCHASES SALES - -------------------------------------------------------------------------------- Short-Term Bond Fund $ 16,199,499 $ 18,649,053 - ---------------------------------------------------------------------------- Bond Fund 6,703,186 1,840,467 - ---------------------------------------------------------------------------- Large Cap Equity Fund 19,130,384 16,855,943 - ---------------------------------------------------------------------------- Small Cap Equity Fund 12,173,140 9,146,927 - ---------------------------------------------------------------------------- International Fund 2,859,052 3,441,238 - ---------------------------------------------------------------------------- ================================================================================ CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND NOTES TO FINANCIAL STATEMENTS - (CONTINUED) MARCH 31, 2004 (UNAUDITED) ================================================================================ (8) SECURITIES LENDING As of March 31, 2004, each Fund had loaned securities in return for cash collateral, which was invested in various short-term, fixed income securities such as repurchase agreements. The risks to the Fund from securities lending are that the borrower may not provide additional collateral when required or return the securities when due or when called by the Fund. The value of the securities on loan and the value of the related collateral were as follows: - -------------------------------------------------------------------------- SECURITIES COLLATERAL - -------------------------------------------------------------------------- Short-Term Bond Fund $ 9,777,401 $ 10,049,875 - -------------------------------------------------------------------------- Bond Fund 16,127,075 16,628,865 - -------------------------------------------------------------------------- Large Cap Equity Fund 609,354 651,202 - -------------------------------------------------------------------------- Small Cap Equity Fund 1,769,091 1,843,847 - -------------------------------------------------------------------------- International Fund 891,399 904,700 - -------------------------------------------------------------------------- (9) TAX MATTERS As of March 31, 2004, the components of distributable earnings on a tax basis for each Fund were as follows:
- --------------------------------------------------------------------------------------------------- UNDISTRIBUTED UNDISTRIBUTED UNREALIZED ORDINARY INCOME LONG-TERM GAIN APPRECIATION/ (DEPRECIATION) - --------------------------------------------------------------------------------------------------- Short-Term Bond Fund $ 26,478 $ 114,161 $ 233,720 - --------------------------------------------------------------------------------------------------- Bond Fund 88,196 -- 4,209,904 - --------------------------------------------------------------------------------------------------- Large Cap Equity Fund 8,257 -- (4,838,457) - --------------------------------------------------------------------------------------------------- Small Cap Equity Fund 5,514 574,334 4,864,996 - --------------------------------------------------------------------------------------------------- International Fund 14,782 -- 3,224,848 - ---------------------------------------------------------------------------------------------------
Net investment income and realized gains and losses for federal income tax purposes differ from that reported in the financial statements because of permanent and temporary book and tax differences. The difference between book basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales. As of September 30, 2003 the Funds had capital loss carryforwards and deferrals available for federal income tax purposes as follows:
- ------------------------------------------------------------------------------------------------------------------------ CAPITAL LOSS CARRYFORWARDS EXPIRING DEFERRED FOR SEPTEMBER 30, TAX PURPOSES - ------------------------------------------------------------------------------------------------------------------------ 2008 2009 2010 2011 TOTAL - ------------------------------------------------------------------------------------------------------------------------ Short-Term Bond Fund $ -- $ -- $ -- $ -- $ -- $ (9,444) - ------------------------------------------------------------------------------------------------------------------------ Bond Fund (127,397) (448,959) -- (182,388) (758,744) (170,499) - ------------------------------------------------------------------------------------------------------------------------
================================================================================ CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND NOTES TO FINANCIAL STATEMENTS - (CONTINUED) MARCH 31, 2004 (UNAUDITED) ================================================================================ (9) TAX MATTERS - (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------ CAPITAL LOSS CARRYFORWARDS EXPIRING DEFERRED FOR SEPTEMBER 30, TAX PURPOSES - ------------------------------------------------------------------------------------------------------------------------ 2008 2009 2010 2011 Total - ------------------------------------------------------------------------------------------------------------------------ Large Cap Equity Fund $ -- $ -- $(1,366,325) $ (6,803,986) $ (8,170,311) $ (151,101) - ------------------------------------------------------------------------------------------------------------------------ Small Cap Equity Fund -- -- -- (846,350) (846,350) (67,551) - ----------------------------------------------------------------------------------------------------------------------- International Fund -- (1,659,946) (4,744,263) (8,667,933) (15,072,142) (378,340) - ------------------------------------------------------------------------------------------------------------------------
The losses deferred for tax purposes consist of losses on wash sales and post-October capital losses. (10) DISTRIBUTIONS TO SHAREHOLDERS The tax character of distributions paid for the six month period ended March 31, 2004 and the fiscal year ended September 30, 2003 were as follows: Distributions paid during the six month period ended March 31, 2004:
- ----------------------------------------------------------------------------- Long Term Capital Ordinary Income Gain - ----------------------------------------------------------------------------- Short-Term Bond Fund $ 235,878 $ 139,634 - ----------------------------------------------------------------------------- Bond Fund 1,209,066 -- - ----------------------------------------------------------------------------- Large Cap Equity Fund 428,379 -- - ----------------------------------------------------------------------------- Small Cap Equity Fund 4,563 -- - ----------------------------------------------------------------------------- International Fund 53,578 -- - ----------------------------------------------------------------------------- Distributions paid during the year ended September 30, 2003: - ----------------------------------------------------------------------------------------------------- Long Term Capital Tax Return Ordinary Income Gain of Capital - ----------------------------------------------------------------------------------------------------- Short-Term Bond Fund $ 834,033 $ 262,503 $ 17,005 - ----------------------------------------------------------------------------------------------------- Bond Fund 2,681,195 -- -- - ----------------------------------------------------------------------------------------------------- Large Cap Equity Fund 881,910 -- -- - ----------------------------------------------------------------------------------------------------- Small Cap Equity Fund 59,708 3,205,174 -- - ----------------------------------------------------------------------------------------------------- International Fund 208,572 -- 13,670 - -----------------------------------------------------------------------------------------------------
================================================================================ CAPSTONE SOCIAL ETHICS AND RELIGIOUS VALUES FUND NOTES TO FINANCIAL STATEMENTS - (CONTINUED) MARCH 31, 2004 (UNAUDITED) ================================================================================ (11) MISCELLANEOUS On July 31, 2003, at the annual meeting of the shareholders, the Fund considered two proposals. They are as follows: 1. To elect Trustees for the Funds. 2. To ratify the selection of Briggs, Bunting & Dougherty, LLP as the Funds' independent auditors. The voting requirements for each proposal and the number of shares present in person or by proxy were as follows: - ---------------------------------------------------------------------------- Shares Shares Needed Outstanding Shares Present for Quorum - ---------------------------------------------------------------------------- Short-Term Bond Fund 1,883,272 591,431 941,636 - ---------------------------------------------------------------------------- Bond Fund 2,529,990 498,156 1,264,995 - ---------------------------------------------------------------------------- Large Cap Equity Fund 3,274,533 771,442 1,637,266 - ---------------------------------------------------------------------------- Small Cap Equity Fund 839,904 164,651 419,952 - ---------------------------------------------------------------------------- International Fund 1,079,001 160,125 539,501 - ---------------------------------------------------------------------------- No proposals were approved on July 31, 2003 due to an insufficient amount of shareholder votes. The meeting has been adjourned for the interim in order to obtain more shareholder votes. ITEM 2. CODE OF ETHICS. Not applicable ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable ITEM 6. SCHEDULE OF INVESTMENT none ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. Fund is an open-end management investment company. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None ITEM 10. CONTROLS AND PROCEDURES. (a) The registrant's principal executive office and principal financial officer has concluded that the registrant's disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940, as amended (the "1940 Act") are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. (b) There were so significant changes in the registrant's internal controls or in other factors that could affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 11. EXHIBITS (a)Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, Filed herewith. (b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) The Capstone Social Ethics & Religious Values Fund By: /s/ Edward L. Jaroski ------------------- Edward L. Jaroski President Date May 21, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Edward L. Jaroski ------------------- Edward L. Jaroski President Date May 21, 2004 By: /s/ Carla Homer ------------------- Carla Homer Treasurer Date May 21, 2004 EX-99.CERT 2 v03606_ex99-cert.txt CERTIFICATIONS I, Edward L. Jaroski, certify that: 1. I have reviewed this report on Form N-CSR of the Capstone Social & Ethics Religious Values Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Pursuant to the requirement of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has fully caused this report to be signed on its behalf by the undersigned, thereunto dully authorized. Capstone Social Ethics & religious Values Fund By: /s/ Edward L. Jaroski ----------------------------- President May 21, 2004 - -------------------------------- Date CERTIFICATIONS I, Carla Homer, certify that: 1. I have reviewed this report on Form N-CSR of the Capstone Social Ethics & Religious Values Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Pursuant to the requirement of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has fully caused this report to be signed on its behalf by the undersigned, thereunto dully authorized. Capstone Social Ethics & Religious Values Fund By: /s/ Carla Homer ----------------------------- Treasurer May 21, 2004 - --------------------------------- Date EX-99.906CERT 3 v03606_ex99-906cert.txt CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Edward L. Jaroski, President of The Capstone Social Ethics & Religious Values Fund (the "Fund"), certify that: The N-CSR of the Fund for the period ended March 31, 2004 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. By: /s/ Edward L. Jaroski ----------------------------------- President Date: May 21, 2004 A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, OR OTHER DOCUMENT AUTHENTICATING, ACKNOWLEDGING, OR OTHERWISE ADOPTING THE SIGNATURE THAT APPEARS IN TYPED FORM WITHIN THE ELECTRONIC VERSION OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, HAS BEEN PROVIDED TO INCAP SERVICE COMPANY AND WILL BE RETAINED BY INCAP SERVICE COMPANY AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Carla Homer, Treasurer of The Capstone Social Ethics & Religious Values Fund the "Fund"), certify that: The N-CSR of the Fund for the period ended March 31, 2004 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. By: /s/ Carla Homer ----------------------------------- Treasurer Date: May 21, 2004 A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, OR OTHER DOCUMENT AUTHENTICATING, ACKNOWLEDGING, OR OTHERWISE ADOPTING THE SIGNATURE THATAPPEARS IN TYPED FORM WITHIN THE ELECTRONIC VERSION OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, HAS BEEN PROVIDED TO INCAP SERVICE COMPANY AND WILL BE RETAINED BY INCAP SERVICE COMPANY AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. -----END PRIVACY-ENHANCED MESSAGE-----