-----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, CHmgMxIa105t9wBez+rWlMaFr+Dz4NM4IgN2kJp7aZpIWbWcNmm+4Ba477lbRPm+ N8fenC4/QXPpNXkmGRoa4Q== 0000950135-08-001238.txt : 20080227 0000950135-08-001238.hdr.sgml : 20080227 20080227151157 ACCESSION NUMBER: 0000950135-08-001238 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071231 FILED AS OF DATE: 20080227 DATE AS OF CHANGE: 20080227 EFFECTIVENESS DATE: 20080227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITIZENS FUNDS CENTRAL INDEX KEY: 0000711202 IRS NUMBER: 942874420 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03626 FILM NUMBER: 08646338 BUSINESS ADDRESS: STREET 1: ONE HARBOUR PLACE STREET 2: SUITE 400 CITY: PORTSMOUTH STATE: NH ZIP: 03801 BUSINESS PHONE: 6034365152 MAIL ADDRESS: STREET 1: ONE HARBOUR PLACE STREET 2: SUITE 400 CITY: PORTSMOUTH STATE: NH ZIP: 03801 FORMER COMPANY: FORMER CONFORMED NAME: CITIZENS INVESTMENT TRUST DATE OF NAME CHANGE: 19951106 FORMER COMPANY: FORMER CONFORMED NAME: WORKING ASSETS COMMON HOLDINGS DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: WORKING ASSETS MONEY FUND DATE OF NAME CHANGE: 19920531 0000711202 S000009286 Citizens Value Fund C000025348 Standard MYPVX C000033806 Institutional CVALX C000038510 Administrative 0000711202 S000009287 Citizens Core Growth C000025349 Standard WAIDX C000025350 Institutional WINIX C000025351 Administrative CGADX 0000711202 S000009288 Citizens Emerging Growth C000025352 Standard WAEGX C000025353 Institutional CEGIX C000025354 Administrative CGRDX 0000711202 S000009289 Citizens Small Cap Core Growth C000025355 Standard CSCSX C000038511 Administrative 0000711202 S000009290 Citizens Global Equity C000025356 Standard WAGEX C000025357 Institutional CGEIX C000025358 Administrative CEADX 0000711202 S000009291 Citizens Income Fund C000025359 Standard WAIMX 0000711202 S000009292 Citizens Money Market C000025360 Standard WKAXX C000025361 Institutional WAIXX 0000711202 S000009293 Citizens Balanced Fund C000025362 Standard CFBLX N-CSRS 1 b68042a1nvcsrs.txt CITIZENS FUNDS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company File Number: 811-03626 CITIZENS FUNDS (Exact Name of Registrant as Specified in Charter) One Harbour Place, Suite 400, Portsmouth, New Hampshire 03801 (Address of Principal Executive Offices) Sophia Collier Citizens Advisers, Inc. One Harbour Place Portsmouth, NH 03801 (Name and Address of Agent for Service) Registrant's Telephone Number, including Area Code: (603) 436-5152 Date of fiscal year end: June 30 Date of reporting period: December 31, 2007 ITEM 1. REPORT TO SHAREHOLDERS. [CITIZENS FUNDS LOGO] SEMI-ANNUAL REPORT DECEMBER 31 ,2007 [GRAPHIC] SHARE THE SEEDS OF RESPONSIBLE INVESTING TABLE OF CONTENTS SEMI - ANNUAL REPORT
Portfolio composition 2 Holdings 4 Statements of assets and liabilities 22 Statements of operations 24 Statements of changes in net assets 26 Financial highlights 30 Financial notes 36 Supplemental information 46
PORTFOLIO COMPOSITION (UNAUDITED) PORTFOLIO COMPOSITION
PERCENTAGE OF CORE GROWTH FUND INVESTMENTS SECURITY ALLOCATION AT VALUE - ------------------------------------------------------------ Information Technology....................... 19.7% Financials................................... 18.6% Energy....................................... 12.5% Healthcare................................... 12.1% Industrials.................................. 10.3% Consumer Staples............................. 8.7% Consumer Discretionary....................... 8.4% Materials.................................... 3.5% Utilities.................................... 3.2% Telecommunication Services................... 2.8% Cash Equivalents............................. 0.2% - ------------------------------------------------------------
PERCENTAGE OF EMERGING GROWTH FUND INVESTMENTS SECURITY ALLOCATION AT VALUE - ------------------------------------------------------------ Information Technology....................... 18.7% Consumer Discretionary....................... 18.1% Healthcare................................... 14.8% Industrials.................................. 13.7% Energy....................................... 12.6% Financials................................... 8.0% Materials.................................... 4.4% Cash Equivalents............................. 3.0% Consumer Staples............................. 2.6% Telecommunication Services................... 2.3% Utilities.................................... 1.8% - ------------------------------------------------------------
SMALL CAP PERCENTAGE OF CORE GROWTH FUND INVESTMENTS SECURITY ALLOCATION AT VALUE - ------------------------------------------------------------ Information Technology....................... 23.4% Consumer Discretionary....................... 18.1% Healthcare................................... 17.5% Industrials.................................. 11.5% Energy....................................... 8.9% Financials................................... 6.3% Materials.................................... 5.1% Consumer Staples............................. 5.0% Cash Equivalents............................. 4.2% - ------------------------------------------------------------
PERCENTAGE OF VALUE FUND INVESTMENTS SECURITY ALLOCATION AT VALUE - ------------------------------------------------------------ Financials................................... 17.8% Information Technology....................... 16.7% Energy....................................... 13.0% Healthcare................................... 12.2% Industrials.................................. 10.9% Consumer Staples............................. 10.3% Consumer Discretionary....................... 8.7% Utilities.................................... 3.7% Telecommunication Services................... 3.2% Materials.................................... 2.9% Cash Equivalents............................. 0.6% - ------------------------------------------------------------
PERCENTAGE OF GLOBAL EQUITY FUND INVESTMENTS SECURITY ALLOCATION AT VALUE - ------------------------------------------------------------ Financials................................... 20.1% Healthcare................................... 12.3% Industrials.................................. 11.3% Information Technology....................... 10.9% Energy....................................... 10.3% Materials.................................... 9.5% Consumer Staples............................. 6.8% Telecommunication Services................... 5.9% Consumer Discretionary....................... 5.8% Cash Equivalents............................. 4.7% Utilities.................................... 2.4% - ------------------------------------------------------------
SEE FINANCIAL NOTES 2 DECEMBER 31, 2007
PERCENTAGE OF BALANCED FUND INVESTMENTS SECURITY ALLOCATION AT VALUE - ------------------------------------------------------------ Equity Financials................................. 13.3% Information Technology..................... 12.3% Energy..................................... 9.5% Healthcare................................. 8.8% Industrials................................ 7.6% Consumer Staples........................... 6.8% Consumer Discretionary..................... 5.0% Utilities.................................. 2.5% Materials.................................. 2.3% Telecommunication Services................. 2.2% - ------------------------------------------------------------ Fixed Income U.S. Government Agency Obligations......... 12.4% U.S. Government Obligations................ 7.8% Corporate Bonds............................ 5.5% Foreign Government Bonds................... 0.2% Collateralized Mortgage Obligations........ 0.1% - ------------------------------------------------------------ Cash Equivalents............................. 3.7% - ------------------------------------------------------------
PERCENTAGE OF INCOME FUND INVESTMENTS SECURITY ALLOCATION AT VALUE - ------------------------------------------------------------ U.S. Government Agency Obligations........... 41.6% U.S. Government Obligations.................. 23.9% Collateralized Mortgage Obligations.......... 21.3% Corporate Bonds.............................. 13.0% Cash Equivalents............................. 0.2% - ------------------------------------------------------------
PERCENTAGE OF MONEY MARKET FUND INVESTMENTS AT SECURITY ALLOCATION VALUE - ------------------------------------------------------------- Commercial Paper............................. 70.9% U.S. Government Agency Obligations........... 18.7% Municipal Notes.............................. 7.5% U.S. Treasury Bills.......................... 2.7% Certificates of Deposit...................... 0.2% - -------------------------------------------------------------
All portfolio compositions subject to change. SEE FINANCIAL NOTES 3 CITIZENS FUNDS HOLDINGS (UNAUDITED)
- ------------------------------------------------------------------------- CORE GROWTH FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- COMMON STOCKS - 100.0% AIR FREIGHT - 1.4% FedEx Corp. 49,500 4,414 APPAREL MANUFACTURERS - 1.3% NIKE, Inc., Class B 60,600 3,893 BANKS - 6.1% Banco Santander Central Hispano SA ADR 198,000 4,265 ICICI Bank Ltd. ADR 83,400 5,130 UBS AG ADR 99,900 4,595 Wells Fargo & Co. 164,000 4,951 ------- 18,941 BIOTECHNOLOGY - 1.5% Roche Holding AG ADR 54,300 4,691 CHEMICALS - 2.6% Amgen, Inc. (a) 65,900 3,060 Praxair, Inc. 58,240 5,167 ------- 8,227 COMPUTERS - 11.5% Akamai Technologies, Inc. (a) 100,150 3,465 Apple, Inc. (a) 31,500 6,239 Autodesk, Inc. (a) 80,000 3,981 Corning, Inc. 193,700 4,647 Google, Inc., Class A (a) 7,800 5,394 Hewlett-Packard Co. 114,000 5,755 Oracle Corp. (a) 283,100 6,391 ------- 35,872 ELECTRICAL EQUIPMENT - 1.7% Emerson Electric Co. 95,800 5,428 ELECTRONICS - 7.4% Cisco Systems, Inc. (a) 165,000 4,467 MEMC Electronic Materials, Inc. (a) 63,000 5,575 NVIDIA Corp. (a) 138,000 4,695 Texas Instruments, Inc. 88,000 2,939 Thermo Fisher Scientific, Inc. (a) 94,300 5,439 ------- 23,115 ENERGY & UTILITIES - 15.8% Allegheny Energy, Inc. 85,800 5,458 Baker Hughes, Inc. 60,000 4,866 ConocoPhillips 68,875 6,082 Devon Energy Corp. 71,000 6,312 Silvan Power Co. (a) (b) 24,000 0 The AES Corp. (a) 211,900 4,533 The Williams Cos., Inc. 214,000 7,656 Transocean, Inc. (a) 70,494 10,090 Vulcan Power Co., Class A (a) (b) 40,000 0 XTO Energy, Inc. 78,125 4,013 ------- 49,010 ENTERTAINMENT - 1.2% The Walt Disney Co. 118,000 3,809 FINANCIAL - DIVERSIFIED - 3.5% JPMorgan Chase & Co. 103,700 4,527 Lehman Brothers Holdings, Inc. 45,100 2,951 Merrill Lynch & Co., Inc. 62,300 3,344 ------- 10,822 FINANCIAL SERVICES - 3.1% Franklin Resources, Inc. 39,700 4,543 Prudential Financial, Inc. 55,200 5,136 ------- 9,679 FOODS - 3.5% Hansen Natural Corp. (a) 49,000 2,170 PepsiCo, Inc. 113,500 8,615 ------- 10,785 HEALTHCARE - 6.6% Becton, Dickinson & Co. 55,800 4,664 C.R. Bard, Inc. 31,712 3,006 Hologic, Inc. (a) 49,218 3,378 Intuitive Surgical, Inc. (a) 13,269 4,306 WellPoint, Inc. (a) 57,400 5,036 ------- 20,390 INSURANCE - 3.4% AFLAC, Inc. 79,800 4,998 American International Group, Inc. 98,200 5,725 ------- 10,723
SEE FINANCIAL NOTES 4 DECEMBER 31, 2007 ($ X 1,000)
- ------------------------------------------------------------------------- CORE GROWTH FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- INVESTMENT BANKING & BROKERAGE - 2.0% Affiliated Managers Group, Inc. (a) 20,400 2,396 The Goldman Sachs Group, Inc. 17,400 3,742 ------- 6,138 MANUFACTURING - 11.0% Bucyrus International, Inc., Class A 31,000 3,081 Crown Holdings, Inc. (a) 118,235 3,033 Danaher Corp. 67,000 5,879 General Cable Corp. (a) 62,000 4,543 Oshkosh Truck Corp. 53,480 2,527 Precision Castparts Corp. 44,600 6,186 Procter & Gamble Co. 122,800 9,016 ------- 34,265 MULTIMEDIA - 1.3% News Corp., Class A 27,000 553 News Corp., Class B 166,000 3,528 ------- 4,081 PHARMACEUTICALS - 1.4% Schering-Plough Corp. 164,700 4,388 REAL ESTATE - 0.6% CB Richard Ellis Group, Inc., Class A (a) 82,200 1,771 RESTAURANTS - 1.2% Starbucks Corp. (a) 188,200 3,852 RETAIL - 5.0% Best Buy & Co., Inc. 66,800 3,517 CVS/Caremark Corp. 182,575 7,258 Netflix, Inc. (a) 78,000 2,076 Target Corp. 55,100 2,755 ------- 15,606 SERVICES - 3.4% Accenture Ltd., Class A 115,100 4,148 Cognizant Technology Solutions Corp., Class A (a) 110,000 3,733 Nalco Holding Co. 109,970 2,659 ------- 10,540 TELECOMMUNICATIONS - 3.5% AT&T, Inc. 162,625 6,758 Comcast Corp., Class A (a) 115,000 2,100 NII Holdings, Inc. (a) 44,200 2,136 ------- 10,994 ------- TOTAL COMMON STOCKS 311,434 Cost: $276,160 SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 0.2% Fifth Third Bank, Inc., 3.25%, 01/02/08 (Date of Agreement 12/31/07, proceeds at maturity $752, collateralized by Federal National Mortgage Assoc. security, 5.00%, 07/01/33, market value $774) Cost: $752 752 752 ------- TOTAL INVESTMENTS - 100.2% 312,186 Cost: $276,912
Percentages indicated are based on net assets of $311,296. (a) Non-income producing security. (b) On December 31, 2007, the fund owned the following restricted securities constituting 0.00% of net assets which may not be publicly sold without registration under the Securities Act of 1933. These securities are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Trust's Board of Trustees. Additional information on the securities is as follows: Vulcan Power Co., Class A Acquisition Date: March 3, 1995 Cost: $300 Unit Cost: $7.50 Value: $0 Silvan Power Co. Acquisition Date: July 27, 2004 Cost: $0 Unit Cost: $0 Value: $0 ADR - American Depositary Receipt - -------------------------------------------------------------------------------- SEE FINANCIAL NOTES 5 CITIZENS FUNDS HOLDINGS (UNAUDITED)
- ------------------------------------------------------------------------- EMERGING GROWTH FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- COMMON STOCKS - 97.5% APPAREL MANUFACTURERS - 5.0% Crocs, Inc. (a) 70,000 2,577 Gildan Activewear, Inc. (a) 90,000 3,704 Guess?, Inc. 65,000 2,463 ------- 8,744 BIOTECHNOLOGY - 4.2% Alexion Pharmaceuticals, Inc. (a) 27,000 2,026 Gilead Sciences, Inc. (a) 80,400 3,699 Techne Corp. (a) 25,000 1,651 ------- 7,376 COMPUTERS - 5.6% Akamai Technologies, Inc. (a) 95,000 3,287 Corning, Inc. 75,360 1,808 Network Appliance, Inc. (a) 55,000 1,373 Seagate Technology 70,000 1,785 VeriFone Holdings, Inc. (a) 60,000 1,395 ------- 9,648 CONSUMER PRODUCTS - 3.6% Bare Escentuals, Inc. (a) 70,000 1,698 Energizer Holdings, Inc. (a) 25,000 2,803 Tempur-Pedic International, Inc. 70,000 1,818 ------- 6,319 ELECTRICAL EQUIPMENT - 1.5% Thomas & Betts Corp. (a) 20,000 981 WESCO International, Inc. (a) 40,000 1,585 ------- 2,566 ELECTRONICS - 10.0% Broadcom Corp., Class A (a) 70,000 1,830 Cypress Semiconductor Corp. (a) 70,000 2,522 Lam Research Corp. (a) 51,000 2,205 MEMC Electronic Materials, Inc. (a) 60,000 5,309 NVIDIA Corp. (a) 55,500 1,888 PerkinElmer, Inc. 75,000 1,952 Tessera Technologies, Inc. (a) 40,000 1,664 ------- 17,370 ENERGY & UTILITIES - 15.8% Airgas, Inc. 40,000 2,084 Allegheny Energy, Inc. 50,000 3,181 Core Laboratories N.V. (a) 25,000 3,118 Dresser-Rand Group, Inc. (a) 60,000 2,343 EOG Resources, Inc. 37,000 3,302 FMC Technologies, Inc. (a) 45,000 2,552 Noble Energy, Inc. 25,000 1,988 Smith International, Inc. 30,000 2,216 The Williams Cos., Inc. 75,000 2,684 Transocean, Inc. (a) 26,374 3,774 ------- 27,242 FINANCIAL SERVICES - 5.8% CME Group, Inc. 5,406 3,709 IntercontinentalExchange, Inc. (a) 12,000 2,310 T. Rowe Price Group, Inc. 66,110 4,024 ------- 10,043 HEALTHCARE - 9.5% C.R. Bard, Inc. 23,000 2,180 Express Scripts, Inc. (a) 30,000 2,190 Intuitive Surgical, Inc. (a) 14,650 4,755 Invitrogen Corp. (a) 23,000 2,148 Laboratory Corp. of America Holdings (a) 40,000 3,021 St. Jude Medical, Inc. (a) 55,000 2,235 ------- 16,529 INTERNET SERVICE PROVIDERS - 1.1% Verisign, Inc. (a) 50,000 1,881 INVESTMENT BANKING & BROKERAGE - 1.2% Affiliated Managers Group, Inc. (a) 18,000 2,114 MANUFACTURING - 12.2% BE Aerospace, Inc. (a) 48,000 2,539 Commercial Metals Co. 65,000 1,908 Cummins, Inc. 40,000 5,094 Flowserve Corp. 25,000 2,405 Oshkosh Truck Corp. 58,568 2,768 Precision Castparts Corp. 18,000 2,497 RTI International Metals, Inc. (a) 29,000 1,999 Terex Corp. (a) 30,000 1,967 ------- 21,177
SEE FINANCIAL NOTES 6 DECEMBER 31, 2007 ($ X 1,000)
- ------------------------------------------------------------------------- EMERGING GROWTH FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- REAL ESTATE - 1.1% CB Richard Ellis Group, Inc., Class A (a) 85,000 1,832 RESTAURANTS - 1.6% Burger King Holdings, Inc. 95,000 2,708 RETAIL - 8.4% Aeropostale, Inc. (a) 67,000 1,776 Coach, Inc. (a) 58,000 1,774 Gamestop Corp., Class A (a) 40,000 2,484 Nordstrom, Inc. 48,012 1,763 Priceline.com, Inc. (a) 35,000 4,020 Urban Outfitters, Inc. (a) 100,000 2,726 ------- 14,543 SERVICES - 5.8% Cognizant Technology Solutions Corp., Class A (a) 60,000 2,036 Fluor Corp. 17,000 2,477 Nalco Holding Co. 65,000 1,572 Sotheby's 55,000 2,096 VistaPrint Ltd. (a) 45,000 1,928 ------- 10,109 TELECOMMUNICATIONS - 4.2% Ciena Corp. (a) 50,000 1,706 EchoStar Communications Corp., Class A (a) 45,000 1,697 NII Holdings, Inc. (a) 42,000 2,029 Time Warner Telecom, Inc., Class A (a) 95,000 1,928 ------- 7,360 TRANSPORTATION - 0.9% Canadian Pacific Railway, Ltd. 25,000 1,616 ------- TOTAL COMMON STOCKS 169,177 Cost: $129,910 REPURCHASE AGREEMENTS - 3.0% Fifth Third Bank, Inc., 3.25%, 01/02/08 (Date of Agreement 12/31/07, proceeds at maturity $5,223, collateralized by Federal National Mortgage Assoc. security, 5.00%, 07/01/33, market value $5,378) Cost: $5,222 5,222 5,222 ------- TOTAL INVESTMENTS - 100.5% 174,399 Cost: $135,132
Percentages indicated are based on net assets of $173,569. (a) Non-income producing security. - -------------------------------------------------------------------------------- SEE FINANCIAL NOTES 7 CITIZENS FUNDS HOLDINGS (UNAUDITED)
- ------------------------------------------------------------------------- SMALL CAP CORE GROWTH FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- COMMON STOCKS - 96.0% AEROSPACE & DEFENSE - 1.6% TransDigm Group, Inc. (a) 14,000 632 APPAREL MANUFACTURERS - 5.3% Crocs, Inc. (a) 16,000 589 Deckers Outdoor Corp. (a) 10,000 1,551 ------ 2,140 BANKS - 0.7% Pinnacle Financial Partners, Inc. (a) 10,500 267 BIOTECHNOLOGY - 4.8% Alexion Pharmaceuticals, Inc. (a) 6,000 450 American Oriental Bioengineering, Inc. (a) 45,000 499 Myriad Genetics, Inc. (a) 10,000 464 Techne Corp. (a) 8,000 528 ------ 1,941 BROADCASTING - 1.1% Lin TV Corp., Class A (a) 35,000 426 COMPUTERS - 11.6% ANSYS, Inc. (a) 20,000 828 Concur Technologies, Inc. (a) 19,000 688 NIC, Inc. 70,000 591 Nuance Communications Inc. (a) 35,000 654 Omniture Inc. (a) 18,000 599 Synaptics, Inc. (a) 11,000 453 VASCO Data Security International, Inc. (a) 18,000 503 VeriFone Holdings, Inc. (a) 15,000 349 ------ 4,665 ELECTRONICS - 2.7% Diodes, Inc. (a) 19,000 571 SiRF Technology Holdings, Inc. (a) 21,000 528 ------ 1,099 ENERGY & UTILITIES - 10.4% Airgas, Inc. 11,500 599 Atwood Oceanics, Inc. (a) 9,000 902 Core Laboratories N.V. (a) 11,000 1,372 Dresser-Rand Group, Inc. (a) 14,000 547 Holly Corp. 7,000 356 T-3 Energy Services, Inc. (a) 8,500 400 ------ 4,176 ENGINEERING & CONSTRUCTION - 2.3% Michael Baker Corp. (a) 12,000 493 Stanley Inc. (a) 14,000 448 ------ 941 FINANCIAL - DIVERSIFIED - 0.6% Advanta Corp., Class B 29,000 234 FOODS - 1.3% Spartan Stores, Inc. 23,500 537 HEALTHCARE - 11.8% Allscripts Healthcare Solutions, Inc. (a) 19,000 369 Bio-Reference Laboratories, Inc. (a) 10,000 327 Immucor, Inc. (a) 12,000 408 Integra LifeSciences Holdings (a) 9,500 398 Inverness Medical Innovations, Inc. (a) 10,000 562 Kendle International, Inc. (a) 13,500 660 Natus Medical, Inc. (a) 25,000 484 Nighthawk Radiology Holdings, Inc. (a) 20,000 421 Omnicell, Inc. (a) 15,000 404 United Therapeutics Corp. (a) 4,000 391 Ventana Medical Systems, Inc. (a) 3,500 305 ------ 4,729 INSURANCE - 1.4% Tower Group, Inc. 16,500 551 INVESTMENT BANKING & BROKERAGE - 3.0% Affiliated Managers Group, Inc. (a) 5,000 587 Investment Technology Group, Inc. (a) 13,000 619 ------ 1,206
SEE FINANCIAL NOTES 8 DECEMBER 31, 2007 ($ X 1,000)
- ------------------------------------------------------------------------- SMALL CAP CORE GROWTH FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- MANUFACTURING - 12.4% Apogee Enterprises, Inc. 20,000 342 Barnes Group, Inc. 17,500 584 BE Aerospace, Inc. (a) 13,000 689 Bucyrus International, Inc., Class A 6,000 597 Century Aluminum Co. (a) 8,500 458 Itron, Inc. (a) 4,500 432 Middleby Corp. (a) 5,500 421 RTI International Metals, Inc. (a) 7,000 483 Silgan Holdings, Inc. 10,000 519 Tennant Co. 9,000 399 ------ 4,924 PERSONAL CARE - 1.1% Chattem, Inc. (a) 6,000 453 PHARMACEUTICALS - 2.2% Pharmion Corp. (a) 10,000 629 Progenics Pharmaceuticals, Inc. (a) 13,500 244 ------ 873 RESORTS AND THEME PARKS - 0.7% Vail Resorts, Inc. (a) 5,500 296 RESTAURANTS - 1.9% Jack in the Box, Inc. (a) 14,000 361 Texas Roadhouse, Inc., Class A (a) 35,000 387 ------ 748 RETAIL - 4.5% Aeropostale, Inc. (a) 16,000 424 Priceline.com, Inc. (a) 12,000 1,378 ------ 1,802 SERVICES - 9.6% Bankrate, Inc. (a) 7,000 337 First Cash Financial Services, Inc. (a) 20,000 294 LIFE TIME FITNESS, Inc. (a) 9,000 447 LKQ Corp. (a) 25,000 526 Shutterfly, Inc. (a) 20,000 512 Sotheby's 10,000 381 TheStreet.com, Inc. 48,000 763 VistaPrint Ltd. (a) 14,000 600 ------ 3,860 TELECOMMUNICATIONS - 3.7% Atheros Communications, Inc. (a) 20,500 626 NICE Systems Ltd. ADR (a) 25,000 858 ------ 1,484 WASTE MANAGEMENT - 1.3% Darling International Inc. (a) 45,000 520 ------ TOTAL COMMON STOCKS 38,504 Cost: $30,280 SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 4.2% Fifth Third Bank, Inc., 3.25%, 01/02/08 (Date of Agreement 12/31/07, proceeds at maturity $1,668, collateralized by Federal National Mortgage Assoc. security, 5.00%, 07/01/33, market value $1,717) Cost: $1,667 1,667 1,667 ------ TOTAL INVESTMENTS - 100.2% 40,171 Cost: $31,947
Percentages indicated are based on net assets of $40,104. (a) Non-income producing security. ADR - American Depositary Receipt - -------------------------------------------------------------------------------- SEE FINANCIAL NOTES 9 CITIZENS FUNDS HOLDINGS (UNAUDITED)
- ------------------------------------------------------------------------- VALUE FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- COMMON STOCKS - 99.4% AIR FREIGHT - 1.2% FedEx Corp. 9,469 844 APPAREL MANUFACTURERS - 2.3% NIKE, Inc., Class B 14,028 902 VF Corp. 9,430 647 ------ 1,549 BANKS - 2.2% Bank of America Corp. 21,811 900 ICICI Bank Ltd. ADR 10,000 615 ------ 1,515 CHEMICALS - 3.1% Amgen, Inc. (a) 21,000 975 Praxair, Inc. 13,142 1,166 ------ 2,141 COMPUTERS - 11.3% Akamai Technologies, Inc. (a) 26,600 920 Corning, Inc. 49,988 1,199 Hewlett-Packard Co. 23,617 1,192 Intel Corp. 40,113 1,069 International Business Machines Corp. 10,356 1,119 Microsoft Corp. 26,624 948 Oracle Corp. (a) 56,003 1,266 ------ 7,713 CONSUMER PRODUCTS - 1.7% Kimberly-Clark Corp. 16,353 1,134 ELECTRICAL EQUIPMENT - 1.1% Emerson Electric Co. 13,306 754 ELECTRONICS - 7.9% Cisco Systems, Inc. (a) 29,487 798 MEMC Electronic Materials, Inc. (a) 15,107 1,337 Rockwell Automation, Inc. 14,211 980 Texas Instruments, Inc. 31,080 1,038 Thermo Fisher Scientific, Inc. (a) 22,250 1,283 ------ 5,436 ENERGY & UTILITIES - 16.6% Allegheny Energy, Inc. 21,450 1,364 Apache Corp. 19,100 2,054 Baker Hughes, Inc. 11,151 904 ConocoPhillips 28,366 2,504 The AES Corp. (a) 53,800 1,151 The Williams Cos., Inc. 35,500 1,270 Transocean, Inc. (a) 15,241 2,182 ------ 11,429 FINANCIAL - DIVERSIFIED - 8.8% AMBAC Financial Group, Inc. 23,925 617 Capital One Financial Corp. 14,539 687 Citigroup, Inc. 24,100 710 JPMorgan Chase & Co. 27,226 1,188 Lehman Brothers Holdings, Inc. 17,771 1,163 Merrill Lynch & Co., Inc. 18,558 996 MetLife, Inc. 10,741 662 ------ 6,023 FOODS - 7.9% Archer-Daniels-Midland Co. 22,100 1,026 Bunge, Ltd. 7,700 896 General Mills, Inc. 19,700 1,123 Kellogg Co. 22,174 1,163 PepsiCo, Inc. 15,737 1,194 ------ 5,402 HEALTHCARE - 7.9% Baxter International, Inc. 15,490 899 Becton, Dickinson & Co. 13,406 1,120 Coventry Health Care, Inc. (a) 13,491 799 Johnson & Johnson, Inc. 17,162 1,145 WellPoint, Inc. (a) 16,359 1,436 ------ 5,399 INSURANCE - 4.9% American International Group, Inc. 12,902 752 The Allstate Corp. 14,081 735 The Chubb Corp. 19,392 1,059 The Hartford Financial Services Group, Inc. 9,556 833 ------ 3,379 INVESTMENT BANKING & BROKERAGE - 1.9% The Goldman Sachs Group, Inc. 6,040 1,299
SEE FINANCIAL NOTES 10 DECEMBER 31, 2007 ($ X 1,000)
- ------------------------------------------------------------------------- VALUE FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- MANUFACTURING - 6.8% 3M Co. 9,366 790 Crown Holdings, Inc. (a) 31,200 800 General Cable Corp. (a) 12,750 934 Oshkosh Truck Corp. 15,500 733 Precision Castparts Corp. 9,907 1,374 ------ 4,631 MULTIMEDIA - 1.5% News Corp., Class A 48,500 994 PHARMACEUTICALS - 1.0% Schering-Plough Corp. 25,400 677 RESTAURANTS - 1.6% McDonald's Corp. 18,633 1,098 RETAIL - 3.4% Priceline.com, Inc. (a) 10,850 1,246 SUPERVALU, Inc. 14,700 552 Target Corp. 11,082 554 ------ 2,352 SERVICES - 2.3% Omnicom Group, Inc. 11,000 523 URS Corp. (a) 19,209 1,043 ------ 1,566 TELECOMMUNICATIONS - 4.0% AT&T, Inc. 38,351 1,594 CommScope, Inc. (a) 11,150 549 NII Holdings, Inc. (a) 11,800 570 ------ 2,713 ------ TOTAL COMMON STOCKS 68,048 Cost: $58,757 SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 0.6% Fifth Third Bank, Inc., 3.25%, 01/02/08 (Date of Agreement 12/31/07, proceeds at maturity $416, collateralized by Federal National Mortgage Assoc. security, 5.00%, 07/01/33, market value $428) Cost: $416 416 416 ------ TOTAL INVESTMENTS - 100.0% 68,464 Cost: $59,173
Percentages indicated are based on net assets of $68,466. (a) Non-income producing security. ADR - American Depositary Receipt - -------------------------------------------------------------------------------- SEE FINANCIAL NOTES 11 CITIZENS FUNDS HOLDINGS (UNAUDITED)
- ------------------------------------------------------------------------- GLOBAL EQUITY FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- COMMON STOCKS - 95.6% AUTOMOBILE MANUFACTURING - 0.9% Volvo AB ADR 47,000 776 BANKS - 9.2% Australia and New Zealand Banking Group Ltd. ADR 9,500 1,139 Banco Santander Central Hispano SA ADR 70,000 1,508 Bank of America Corp. 23,000 949 Bank of Nova Scotia 25,000 1,263 ICICI Bank Ltd. ADR 20,000 1,230 Julius Baer Holding Ltd. (a) 22,000 1,788 ------ 7,877 BUILDING PRODUCTS - 1.6% Lafarge S.A. ADR 30,000 1,350 CHEMICALS - 1.8% Sigma-Aldrich Corp. 29,000 1,583 COMPUTER SERVICES - 0.9% Akamai Technologies, Inc. (b) 22,500 779 COMPUTERS - 5.3% Hewlett Packard Co. 24,000 1,212 International Business Machines Corp. 10,000 1,081 Microsoft Corp. 35,000 1,246 Oracle Corp. (b) 45,000 1,016 ------ 4,555 CONSTRUCTION - 0.8% Desarrolladora Homex SA de C.V. ADR (b) 14,000 692 ELECTRONICS - 4.0% Agilent Technologies, Inc. (b) 30,000 1,102 Cisco Systems, Inc. (b) 40,000 1,083 Thermo Fisher Scientific, Inc. (b) 21,000 1,211 ------ 3,396 ENERGY & UTILITIES - 12.9% Allegheny Energy, Inc. 15,000 954 Apache Corp. 12,000 1,290 BG Group plc ADR 12,000 1,370 ConocoPhillips 20,000 1,766 EnCana Corp. 17,500 1,189 Statoil ASA ADR 32,000 977 Transocean Inc. (b) 9,094 1,302 Valero Energy Corp. 14,000 980 Veoilia Environnement ADR 12,500 1,137 ------ 10,965 ENTERTAINMENT - 3.1% Nintendo Co., Ltd. (a) 3,000 1,822 The Walt Disney Co. 26,500 855 ------ 2,677 FINANCIAL - DIVERSIFIED - 7.6% AFLAC, Inc. 21,000 1,315 American Express Co. 16,000 832 Deutsche Boerse AG (a) 14,000 2,748 Fannie Mae 21,000 840 JPMorgan Chase & Co. 18,000 786 ------ 6,521 FOOD & BEVERAGES - 5.3% Coca-Cola Hellenic Bottling Co. S.A. (a) 30,500 1,316 Nestle SA (a) 4,000 1,833 The Coca-Cola Co. 22,000 1,350 ------ 4,499 HEALTHCARE - 8.3% Becton, Dickinson & Co. 16,000 1,337 C.R. Bard, Inc. 10,000 948 Fresenius Medical Care AG & Co. KGaA ADR 27,000 1,425 Gilead Sciences, Inc. (b) 20,000 920 Laboratory Corp. of America Holdings (b) 15,000 1,133 Stryker Corp. 18,500 1,382 ------ 7,145 INSURANCE - 1.0% Allianz SE ADR 42,000 893 MANUFACTURING - 14.4% Danaher Corp. 12,000 1,053 Deere & Co. 22,000 2,048 FANUC Ltd. (a) 9,000 878 Johnson Matthey plc (a) 33,000 1,229 Kennametal, Inc. 23,000 871 Komatsu, Ltd. (a) 45,000 1,217 L'Air Liquide SA ADR 66,000 1,964 POSCO ADR 6,000 902 Precision Castparts Corp. 8,000 1,110 Samsung Heavy Industries Co., Ltd.(a)(b) 24,000 1,013 ------ 12,285 PHARMACEUTICALS - 2.6% Novo Nordisk A/S ADR 21,000 1,362 Shire plc ADR 12,500 862 ------ 2,224
SEE FINANCIAL NOTES 12 DECEMBER 31, 2007 ($ X 1,000)
- ------------------------------------------------------------------------- GLOBAL EQUITY FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- REAL ESTATE - 1.2% City Developments, Ltd. (a) 105,000 1,023 RESTAURANTS - 1.5% McDonald's Corp. 22,500 1,325 RETAIL - 4.0% CVS/ Caremark Corp. 33,000 1,312 Industria de Diseno Textil SA (Inditex) (a) 19,000 1,155 Luxottica Group SpA ADR 30,000 945 ------ 3,412 SERVICES - 2.4% Sims Group, Ltd. (a) 48,000 1,125 Swire Pacific, Ltd., Class A (a) 70,000 958 ------ 2,083 TELECOMMUNICATIONS - 5.9% America Movil SA de C.V. ADR 19,000 1,167 AT&T, Inc. 19,000 790 PT Telekomunikasi Indonesia ADR 22,000 924 Telenor ASA ADR 14,000 998 Vodafone Group plc (a) 308,402 1,149 ------ 5,028 TRANSPORTATION - 0.9% Canadian Pacific Railway, Ltd. 12,000 776 ------ TOTAL COMMON STOCKS 81,864 Cost: $62,332 SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 4.7% Fifth Third Bank, Inc., 3.25%, 01/02/08 (Date of Agreement 12/31/07, proceeds at maturity $4,053, collateralized by Federal National Mortgage Assoc. security, 5.00%, 07/01/33, market value $4,174) Cost: $4,052 4,052 4,052 ------ TOTAL INVESTMENTS - 100.3% 85,916 Cost: $66,384
- ------------------------------------------------------------------------- GLOBAL EQUITY FUND - ------------------------------------------------------------------------- Percentages indicated are based on net assets of $85,618. (a) Fair valued security. The approximate market value and percentage of investments of securities that were fair valued for the Global Equity Fund were $19,255 and 22.49%. (b) Non-income producing security. ADR - American Depositary Receipt
The fund's portfolio holdings as of December 31, 2007, were distributed among the following countries: ----------------------- PERCENTAGE OF NET ASSETS SHORT TERM EQUITY & OTHER TOTAL ----------------------- Australia 2.6% 2.6% Canada 2.3% 2.3% Cayman Islands 1.5% 1.5% Denmark 1.6% 1.6% France 5.2% 5.2% Germany 5.9% 5.9% Greece 1.5% 1.5% Hong Kong 1.1% 1.1% India 1.4% 1.4% Indonesia 1.1% 1.1% Italy 1.1% 1.1% Japan 4.6% 4.6% Mexico 2.2% 2.2% Norway 2.3% 2.3% Republic of Korea 2.2% 2.2% Singapore 1.2% 1.2% Spain 3.1% 3.1% Sweden 0.9% 0.9% Switzerland 4.2% 4.2% United Kingdom 5.4% 5.4% United States 44.2% 4.4% 48.6% ---------------------------- TOTAL 95.6% 4.4% 100.0%
- -------------------------------------------------------------------------------- SEE FINANCIAL NOTES 13 CITIZENS FUNDS HOLDINGS (UNAUDITED)
- ------------------------------------------------------------------------- BALANCED FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- COMMON STOCKS - 70.3% AIR FREIGHT - 0.6% FedEx Corp. 896 80 APPAREL MANUFACTURERS - 1.9% NIKE, Inc., Class B 2,100 135 VF Corp. 1,521 104 ------ 239 BANKS - 1.7% Bank of America Corp. 3,180 131 ICICI Bank Ltd. ADR 1,300 80 ------ 211 CHEMICALS - 2.5% Amgen, Inc. (a) 2,750 128 Praxair, Inc. 2,045 181 ------ 309 COMPUTERS - 8.4% Akamai Technologies, Inc. (a) 3,400 118 Corning, Inc. 6,238 150 Hewlett-Packard Co. 2,570 130 Intel Corp. 5,960 159 International Business Machines Corp. 1,437 155 Microsoft Corp. 4,010 143 Oracle Corp. (a) 7,725 174 ------ 1,029 CONSUMER PRODUCTS - 1.2% Kimberly-Clark Corp. 2,160 150 ELECTRICAL EQUIPMENT - 0.9% Emerson Electric Co. 2,000 113 ELECTRONICS - 5.7% Cisco Systems, Inc. (a) 4,200 114 MEMC Electronic Materials, Inc. (a) 1,980 175 Rockwell Automation, Inc. 1,740 120 Texas Instruments, Inc. 3,793 127 Thermo Fisher Scientific, Inc. (a) 2,850 164 ------ 700 ENERGY & UTILITIES - 12.1% Allegheny Energy, Inc. 2,620 167 Apache Corp. 2,300 247 Baker Hughes, Inc. 1,600 130 ConocoPhillips 4,200 371 The AES Corp. (a) 6,900 148 The Williams Cos., Inc. 4,500 161 Transocean, Inc. (a) 1,839 263 ------ 1,487 FINANCIAL - DIVERSIFIED - 6.5% AMBAC Financial Group, Inc. 2,400 62 Capital One Financial Corp. 1,915 91 Citigroup, Inc. 3,100 91 JPMorgan Chase & Co. 3,670 160 Lehman Brothers Holdings, Inc. 2,549 167 Merrill Lynch & Co., Inc. 2,760 148 MetLife, Inc. 1,440 89 ------ 808 FOODS - 5.1% Archer-Daniels-Midland Co. 2,900 135 General Mills, Inc. 2,525 144 Kellogg Co. 3,420 179 PepsiCo, Inc. 2,310 175 ------ 633 HEALTHCARE - 5.8% Baxter International, Inc. 2,330 135 Becton, Dickinson & Co. 1,430 120 Coventry Health Care, Inc. (a) 1,670 99 Johnson & Johnson, Inc. 2,540 169 WellPoint, Inc. (a) 2,175 191 ------ 714 INSURANCE - 3.8% American International Group, Inc. 1,690 99 The Allstate Corp. 2,085 109 The Chubb Corp. 2,820 154 The Hartford Financial Services Group, Inc. 1,300 113 ------ 475 INVESTMENT BANKING & BROKERAGE - 1.2% The Goldman Sachs Group, Inc. 678 146
SEE FINANCIAL NOTES 14 DECEMBER 31, 2007 ($ X 1,000)
- ------------------------------------------------------------------------- BALANCED FUND SECURITY SHARES VALUE($) - ------------------------------------------------------------------------- MANUFACTURING - 4.6% 3M Co. 1,348 114 Crown Holdings, Inc. (a) 4,000 103 General Cable Corp. (a) 1,650 120 Oshkosh Truck Corp. 2,000 95 Precision Castparts Corp. 1,028 142 ------ 574 MULTIMEDIA - 1.0% News Corp., Class A 6,200 127 PHARMACEUTICALS - 0.7% Schering-Plough Corp. 3,300 88 RESTAURANTS - 1.4% McDonald's Corp. 2,890 170 RETAIL - 1.2% SUPERVALU, Inc. 1,635 61 Target Corp. 1,756 88 ------ 149 SERVICES - 1.3% URS Corp. (a) 2,912 158 TELECOMMUNICATIONS - 2.7% AT&T, Inc. 4,680 195 CommScope, Inc. (a) 1,450 71 NII Holdings, Inc. (a) 1,500 72 ------ 338 ------ TOTAL COMMON STOCKS 8,698 Cost: $8,164 SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS - 0.1% First Horizon Alternative Mortgage Securities, 4.73%, 06/25/34 (b) 8 8 5.50%, 03/25/35 (b) 9 9 ------ Cost: $17 17 CORPORATE BONDS - 5.5% BANKS - 0.8% Bank of America Corp., 4.38%, 12/01/10 50 50 Capital One Bank, 6.50%, 06/13/13 50 49 ------ 99 COMPUTERS - 0.1% Corning, Inc., 6.20%, 03/15/16 15 15
- ------------------------------------------------------------------------- BALANCED FUND SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- CONSTRUCTION - 0.2% KB Home, 5.88%, 01/15/15 15 12 Pulte Homes, Inc., 6.00%, 02/15/35 10 8 ------ 20 ENERGY & UTILITIES - 0.6% Atmos Energy, 4.95%, 10/15/14 15 14 Chesapeake Energy Corp., 6.88%, 01/15/16 20 20 Enterprise Products Partners LP, 4.95%, 06/01/10 20 20 XTO Energy, Inc., 5.30%, 06/30/15 20 20 ------ 74 FINANCIAL - DIVERSIFIED - 1.4% CIT Group, Inc., 5.00%, 02/01/15 50 43 Citigroup, Inc., 5.06%, 05/18/10 (b) 50 50 HSBC Finance Corp., 4.63%, 09/15/10 50 49 Liberty Mutual Group, 5.75%, 03/15/14 (c) 10 10 Riddell Bell Holdings, 8.38%, 10/01/12 15 14 ------ 166 FINANCIAL SERVICES - 0.4% Franklin Resources, Inc., 3.70%, 04/15/08 48 48 FOOD - 0.4% The Pepsi Bottling Group, Inc., 5.63%, 02/17/09 (c) 50 51 HEALTHCARE - 0.4% Medtronic, Inc., 4.75%, 09/15/15 50 48 INVESTMENT BANKING & BROKERAGE - 0.1% The Goldman Sachs Group, Inc., 5.00%, 10/01/14 15 15 MANUFACTURING - 0.0%* American Standard, Inc., 7.38%, 02/01/08 5 5
SEE FINANCIAL NOTES 15 CITIZENS FUNDS HOLDINGS (UNAUDITED)
- ------------------------------------------------------------------------- BALANCED FUND SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- REAL ESTATE - 0.0%* Brandywine Realty Trust, 5.40%, 11/01/14 5 5 RESTAURANTS - 0.4% McDonald's Corp., 5.00%, 02/15/15 50 50 TELECOMMUNICATIONS - 0.7% AT&T, Inc., 5.88%, 02/01/12 50 51 Directv Holdings, 6.38%, 06/15/15 30 29 Sprint Nextel Corp., 7.38%, 08/01/15 10 10 ------ 90 ------ TOTAL CORPORATE BONDS 686 Cost: $705 FOREIGN GOVERNMENT BOND - 0.1% United Mexican States, 6.75%, 09/27/34 15 17 Cost: $15 U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.4% FEDERAL FARM CREDIT BANK - 1.0% 5.83%, 01/14/08 25 25 5.05%, 05/18/17 100 102 ------ 127 FEDERAL HOME LOAN BANK - 1.0% 5.20%, 05/11/12 15 15 4.88%, 03/11/16 100 104 ------ 119 FEDERAL HOME LOAN MORTGAGE CORPORATION - 3.6% 4.55%, 01/20/11 5 5 4.50%, 01/15/13 9 9 5.00%, 10/01/18 74 74 5.50%, 10/01/18 47 47 5.20%, 03/05/19 40 40 6.00%, 12/01/20 35 36 5.50%, 03/01/21 78 80 5.50%, 04/01/21 75 75 5.00%, 06/01/35 81 79 ------ 445
- ------------------------------------------------------------------------- BALANCED FUND SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION - 6.8% 5.25%, 01/15/09 14 14 4.38%, 09/15/12 4 4 5.00%, 04/15/15 20 21 5.55%, 08/04/15 100 100 6.00%, 02/25/17 74 76 5.40%, 03/09/17 100 103 5.00%, 10/01/18 67 67 4.50%, 06/01/19 109 107 5.00%, 09/01/19 29 29 5.50%, 03/25/29 100 100 6.50%, 07/01/32 2 2 6.00%, 11/01/32 1 1 5.50%, 03/01/33 23 23 4.58%, 12/01/34 26 26 4.83%, 01/01/35 (b) 15 15 4.82%, 08/01/35 80 79 5.50%, 10/01/35 76 76 ------ 843 ------ TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 1,534 Cost: $1,517 U.S. TREASURY NOTES - 7.8% 6.50%, 02/15/10 100 107 4.00%, 03/15/10 100 102 3.88%, 05/15/10 35 36 4.75%, 05/15/14 10 11 4.00%, 02/15/15 100 101 4.13%, 05/15/15 30 31 4.50%, 11/15/15 100 104 4.50%, 02/15/16 100 104 5.13%, 05/15/16 100 107 4.50%, 05/15/17 100 104 4.75%, 08/15/17 100 106 5.38%, 02/15/31 50 56 ------ COST: $928 969
SEE FINANCIAL NOTES 16 DECEMBER 31, 2007 ($ X 1,000)
- ------------------------------------------------------------------------- BALANCED FUND SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 3.7% Fifth Third Bank, Inc., 3.25%, 01/02/08 (Date of Agreement 12/31/07, proceeds at maturity $461, collateralized by Federal National Mortgage Assoc. security, 5.00%, 07/01/33, market value $475) Cost: $461 461 461 ------ TOTAL INVESTMENTS - 99.9% 12,382 Cost: $11,807
Percentages indicated are based on net assets of $12,389. (a) Non-income producing security. (b) Variable rate security. The rate presented represents the rate in effect at December 31, 2007. (c) Rule 144A security. * Rounds to less than 0.1%. ADR - American Depositary Receipt - -------------------------------------------------------------------------------- SEE FINANCIAL NOTES 17 CITIZENS FUNDS HOLDINGS (UNAUDITED)
- ------------------------------------------------------------------------- INCOME FUND SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS - 21.2% Capital One Multi-Asset Execution Trust, 5.21%, 09/15/11 (a) 700 700 Chase Manhattan Auto Owner Trust, 4.88%, 06/15/12 240 240 Citibank Credit Card Issuance Trust, 3.50%, 08/16/10 285 283 Citigroup Commercial Mortgage Trust, 4.22%, 09/20/51 (b) 500 493 Crusade Global Trust, 4.93%, 11/15/37 (a) 384 384 5.04%, 11/19/37 (a) 270 270 First Horizon Alternative Mortgage Securities, 4.73%, 06/25/34 (a) 626 620 First Union National Bank Commercial Mortgage, 6.42%, 08/15/33 (a) 289 302 Greenwich Capital Commercial Funding Corp., 4.95%, 01/11/35 525 526 3.92%, 08/10/42 143 141 GS Mortgage Securities Corp. II, 4.61%, 01/10/40 800 790 Harley-Davidson Motorcycle Trust, 3.20%, 05/15/12 426 420 LB-UBS Commercial Mortgage Trust, 6.65%, 11/15/27 425 449 6.37%, 12/15/28 900 947 5.02%, 09/15/40 (a) 407 390 Merrill Lynch/Countrywide Commercial Mortgage Investors, Inc., 5.10%, 03/25/30 (a) 157 154 Merrill Lynch/Countrywide Commercial Mortgage Trust, 4.71%, 07/12/46 (a) 639 635 5.53%, 03/12/51(a) 280 276 Puma Finance Ltd., 5.10%, 08/09/35 (a) (b) (c) 600 580 Wachovia Bank Commercial Mortgage Trust, 4.96%, 11/15/35 700 700 5.18%, 07/15/42 510 503 ------ Cost: $9,766 9,803 CORPORATE BONDS - 13.0% AIRLINES - 1.0% Northwest Airlines, Inc., 6.26%, 11/20/21 468 468 BANKING - 3.9% Banco Mercantil del Norte, 6.86%, 10/13/21 (b) 600 591 Bank of America Corp., 5.30%, 03/15/17 375 365 National City Bank, 5.52%, 06/07/17 (a) 465 407 PNC Bank, 6.00%, 12/07/17 470 466 Regions Financial Corp., 7.38%, 12/10/37 15 15 ------ 1,844 COMPUTERS - 0.8% Dell, Inc., 7.10%, 04/15/28 350 380 FINANCIAL - DIVERSIFIED - 2.2% Citigroup Inc., 5.85%, 07/02/13 352 362 5.50%, 02/15/17 355 345 Wachovia Corp., 5.63%, 10/15/16 350 345 ------ 1,052 HEALTHCARE - 0.8% Covidien International, 6.55%, 10/15/37 (b) 355 369 INSURANCE - 1.6% Berkley (WR) Corp., 5.60%, 05/15/15 346 335 Lincoln National Corp, 6.15%, 04/07/36 400 383 ------ 718 OFFICE EQUIPMENT & SERVICES - 0.3% Ikon Office Solutions, 7.75%, 09/15/15 120 125 REITS - DIVERSIFIED - 0.8% CBG Florida REIT Corp., 7.11%,
SEE FINANCIAL NOTES 18 DECEMBER 31, 2007 ($ X 1,000)
- ------------------------------------------------------------------------- INCOME FUND SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- 05/29/49 (a) (b) 375 349 TELECOMMUNICATIONS - 1.6% Comcast Corp., 5.88%, 02/15/18 355 354 Embarq Corp., 8.00%, 06/01/36 355 374 ------ 728 ------ TOTAL CORPORATE BONDS 6,033 Cost: $6,074 U.S. GOVERNMENT AGENCY OBLIGATIONS - 41.4% FEDERAL HOME LOAN MORTGAGE CORPORATION - 14.3% 4.50%, 04/01/20 1,184 1,163 5.00%, 10/01/35 1,650 1,611 6.00%, 07/01/36 1,678 1,703 5.50%, 03/01/37 1,180 1,178 5.50%, 08/01/37 943 941 ------ 6,596 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 27.1% 5.76%, 12/25/11 200 206 4.50%, 01/01/20 1,343 1,320 5.00%, 08/01/20 1,339 1,340 4.40%, 11/25/33 651 649 5.50%, 03/01/36 1,677 1,675 5.50%, 04/01/36 1,679 1,678 6.00%, 07/01/36 1,799 1,827 5.50%, 03/01/37 914 913 5.50%, 06/01/37 1,335 1,320 5.88%, 09/01/37 (a) 689 706 6.00%, 10/01/37 891 898 ------ 12,532 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 19,128 Cost: $18,699 U.S. TREASURY NOTES - 23.8% 4.63%, 07/31/09 3,341 3,419 4.63%, 07/31/12 2,425 2,546 4.75%, 08/15/17 3,123 3,298 4.50%, 02/15/36 1,738 1,747 ------ Cost: $10,620 11,010 REPURCHASE AGREEMENTS - 0.2% Fifth Third Bank, Inc., 3.25%, 01/02/08 (Date of Agreement 12/31/07, proceeds at maturity $74, collateralized by Federal National Mortgage Assoc. security, 5.00%, 07/01/33, market value $76) Cost: $74 74 74 ------ TOTAL INVESTMENTS - 99.6% 46,048 Cost: $45,233
Percentages indicated are based on net assets of $46,238. (a) Variable rate security. The rate presented represents the rate in effect at December 31, 2007. (b) Rule 144A security. (c) Fair valued security. The approximate market value and percentage of investments of securities that were fair valued for the Income Fund were $580 and 1.25%. - -------------------------------------------------------------------------------- SEE FINANCIAL NOTES 19 CITIZENS FUNDS HOLDINGS (UNAUDITED)
- ------------------------------------------------------------------------- MONEY MARKET FUND SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT - 0.2% City National Bank of New Jersey, 4.50%, 03/13/08 (a) 100 100 Self Help Credit Union, 4.98%, 03/14/08 (a) 100 100 ------ Cost: $200 200 COMMERCIAL PAPER - 69.4% American Express Credit, 5.36%, 05/16/08 2,000 1,984 American General Finance Corp., 5.19%, 01/02/08 645 645 4.79%, 01/14/08 1,247 1,245 4.97%, 01/23/08 1,600 1,595 Banco Santander Puerto Rico, 5.01%, 01/10/08 2,172 2,170 5.21%, 01/15/08 1,000 998 5.02%, 01/24/08 1,000 997 Barclays Capital PLC, 4.61%, 01/16/08 1,400 1,397 4.68%, 01/17/08 250 249 4.88%, 01/25/08 100 100 5.11%, 02/19/08 1,000 993 5.02%, 02/20/08 1,372 1,363 Becton Dickinson, 4.32%, 02/14/08 586 583 BMW U.S. Capital, 4.28%, 01/17/08 (b) 1,910 1,907 4.30%, 01/28/08 (b) 1,490 1,485 Cooperative Association of Tractor Dealers, 5.47%, 01/18/08 720 718 5.18%, 02/07/08 1,228 1,221 5.18%, 02/20/08 484 481 Coca Cola Co., 4.82%, 01/07/08 (b) 1,064 1,063 Harley Davidson Funding Corp., 4.61%, 02/04/08 (b) 1,444 1,438 4.48%, 02/13/08 (b) 1,908 1,898 ING America Insurance, 4.78%, 01/14/08 169 169 4.72%, 01/31/08 1,100 1,096 4.85%, 02/05/08 1,322 1,315 J.P. Morgan Chase & Co., 4.50%, 01/03/08 1,000 1,000 5.19%, 01/22/08 854 851 4.60%, 02/12/08 333 331 Merrill Lynch & Co., 5.44%, 01/03/08 1,021 1,021 5.28%, 01/11/08 1,229 1,226 5.25%, 01/25/08 500 498 5.40%, 01/31/08 953 949 4.99%, 02/05/08 506 504 Metlife Funding, 4.29%, 02/22/08 (b) 2,000 1,988 The Procter & Gamble Co., 4.31%, 01/25/08 (b) 1,514 1,510 4.28%, 01/29/08 (b) 1,630 1,624 4.26%, 02/08/08 (b) 1,000 996 Rabobank USA Financial Corp., 4.30%, 01/02/08 1,072 1,072 5.12%, 01/04/08 1,770 1,769 Societe Generale, 5.21%, 01/18/07 1,000 998 4.86%, 02/01/08 1,900 1,892 5.22%, 02/12/08 592 588 Stanley Works, 4.53%, 01/08/08 (b) 1,500 1,499 4.59%, 01/30/08 (b) 1,831 1,824 UBS Finance Corp., 4.79%, 01/24/08 1,000 997 5.19%, 02/05/08 1,000 995 4.65%, 02/11/08 1,180 1,174 4.82%, 02/14/08 1,037 1,031 Verizon Communications, 4.94%, 01/07/08 (b) 916 915 4.94%, 01/08/08 (b) 1,000 999 4.77%, 01/09/08 (b) 2,338 2,336 Wells Fargo & Co., 4.32%, 01/02/08 1,000 1,000 4.33%, 01/11/08 383 383 4.32%, 01/14/08 1,000 998 4.32%, 01/16/08 1,000 998 ------ Cost: $61,076 61,076
SEE FINANCIAL NOTES 20 DECEMBER 31, 2007 ($ X 1,000)
- ------------------------------------------------------------------------- MONEY MARKET FUND SECURITY, RATE, MATURITY DATE PRINCIPAL($) VALUE($) - ------------------------------------------------------------------------- MUNICIPAL NOTES - 7.4% Massachusetts State Development Finance Agency, 4.45%, 12/01/40 (c) 3,000 3,000 New York State Housing Finance Agency, 5.20%, 11/15/29 (c) 3,500 3,500 ------ Cost: $6,500 6,500 U.S. GOVERNMENT AGENCY OBLIGATIONS - 18.3% 5.32%, 01/15/08 1,000 999 5.15%, 01/22/08 1,000 1,000 4.61%, 04/10/08 1,127 1,128 4.25%, 05/16/08 625 623 5.38%, 05/21/08 129 128 4.22%, 05/30/08 1,600 1,590 4.29%, 06/12/08 1,000 1,000 4.74%, 06/15/08 1,096 1,085 4.14%, 07/15/08 1,000 992 4.15%, 07/15/08 1,948 1,940 4.18%, 08/15/08 95 95 4.07%, 09/15/08 1,300 1,296 4.05%, 10/10/08 2,150 2,153 5.01%, 10/27/08 500 500 4.22%, 11/17/08 605 605 5.50%, 04/16/12 1,000 1,000 ------ Cost: $16,134 16,134 U.S. TREASURY BILLS - 2.6% U.S. Treasury Bills, 2.92%, 03/06/08 2,280 2,268 ------ Cost: $2,268 TOTAL INVESTMENTS - 97.9% 86,178 Cost: $86,178
Percentages indicated are based on net assets of $88,024. a) On December 31, 2007, the fund owned the following restricted securities constituting 0.23% of net assets which may not be publicly sold without registration under the Securities Act of 1933. These securities are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Trust's Board of Trustees. Additional information on the securities is as follows: City National Bank of New Jersey Acquisition Date: March 14, 2007 Cost: $100 Unit Cost: $1.00 Value: $100 Self Help Credit Union Acquisition Date: September 14, 2007 Cost: $100 Unit Cost: $1.00 Value: $100 b) Rule 144A security. c) Variable rate security. The rate presented represents the rate in effect at December 31, 2007. - -------------------------------------------------------------------------------- SEE FINANCIAL NOTES 21 STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
Core Growth Emerging Growth Small Cap Core Fund Fund Growth Fund - ----------------------------------------------------------------------------------------------- ASSETS Investments, at value $311,434,409 $ 169,177,551 $38,503,925 Repurchase agreements 751,619 5,221,654 1,667,337 ----------------------------------------------- Total investments 312,186,028 174,399,205 40,171,262 Cash -- -- -- Foreign currency -- -- -- Receivables: Interest and dividends 150,281 39,588 991 Tax reclaims -- -- -- Capital shares issued 406,897 50,576 82,038 Due from investment adviser -- -- -- Due from distributor 16,925 11,813 2,736 Prepaid expenses 24,110 21,305 12,271 ----------------------------------------------- Total assets 312,784,241 174,522,487 40,269,298 LIABILITIES Payables: Dividends to shareholders -- -- -- Capital shares redeemed 371,500 130,830 32,160 Investment management fees 394,566 447,652 52,652 Administrative fees 118,371 67,148 15,796 Distribution fees 184,277 129,868 30,686 Shareholder service fees 193,105 8,813 1,434 Transfer agent expenses 176,226 124,331 23,377 Other accrued expenses 50,119 44,732 9,573 ----------------------------------------------- Total liabilities 1,488,164 953,374 165,678 - ----------------------------------------------------------------------------------------------- NET ASSETS $311,296,077 $ 173,569,113 $40,103,620 - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- NET ASSETS Standard Shares: Net assets $245,189,448 $ 170,110,547 $40,103,620 Number of shares outstanding 10,497,187 9,161,425 3,158,337 Net asset value, offering and redemption price per share $ 23.36 $ 18.57 $ 12.70 Institutional Shares: Net assets $ 64,151,354 $ 528,014 -- Number of shares outstanding 3,260,449 27,056 -- Net asset value, offering and redemption price per share $ 19.68 $ 19.52 -- Administrative Shares: Net assets $ 1,955,275 $ 2,930,552 -- Number of shares outstanding 81,135 153,605 -- Net asset value, offering and redemption price per share $ 24.10 $ 19.08 -- Net assets consist of: Paid-in capital $275,955,237 $ 281,596,626 $32,355,564 Accumulated (Distributions in excess of) net investment income/loss (637,793) (1,247,491) (197,943) Accumulated net realized gains/losses on investments and foreign currencies 704,929 (146,047,676) (278,494) Net unrealized appreciation/depreciation on investments and foreign currencies 35,273,704 39,267,654 8,224,493 - ----------------------------------------------------------------------------------------------- NET ASSETS $311,296,077 $ 173,569,113 $40,103,620 - ----------------------------------------------------------------------------------------------- Investments, at cost $276,912,324 $ 135,131,551 $31,946,769 Foreign currency, at cost -- -- --
SEE FINANCIAL NOTES 22 AS OF DECEMBER 31, 2007
Value Global Equity Balanced Income Money Market Fund Fund Fund Fund Fund - -------------------------------------------------------------------------- $68,048,630 $ 81,864,029 $11,921,209 $45,974,057 $86,178,274 415,655 4,051,911 461,119 73,910 -- - -------------------------------------------------------------------------- 68,464,285 85,915,940 12,382,328 46,047,967 86,178,274 -- -- -- -- 1,834,222 -- 197 -- -- -- 45,548 66,957 40,659 405,262 175,105 -- 31,706 -- -- -- 219,035 93,991 144 14,779 -- 68,403 -- 24,728 -- -- 4,019 5,789 836 3,183 -- 10,397 16,240 7,556 7,143 14,923 - -------------------------------------------------------------------------- 68,811,687 86,130,820 12,456,251 46,478,334 88,202,524 -- -- 4,775 13,700 8,416 82,429 112,820 1,941 53,208 -- 149,973 215,743 32,243 75,957 75,538 30,104 32,360 4,658 17,529 32,373 43,306 62,163 9,002 33,955 -- -- 3,900 390 2,233 3,409 28,005 62,624 8,134 28,523 34,779 12,134 23,396 5,944 15,101 23,834 - -------------------------------------------------------------------------- 345,951 513,006 67,087 240,206 178,349 - -------------------------------------------------------------------------- $68,465,736 $ 85,617,814 $12,389,164 $46,238,128 $88,024,175 - -------------------------------------------------------------------------- - -------------------------------------------------------------------------- $58,891,553 $ 84,151,183 $12,389,164 $46,238,128 $77,149,276 3,937,598 3,727,457 1,013,281 4,682,002 77,280,350 $ 14.96 $ 22.58 $ 12.23 $ 9.88 $ 1.00 $ 9,574,183 $ 402,569 -- -- $10,874,899 639,974 17,089 -- -- 10,884,614 $ 14.96 $ 23.56 -- -- $ 1.00 -- $ 1,064,062 -- -- -- -- 46,216 -- -- -- -- $ 23.02 -- -- -- $62,082,023 $ 175,156,065 $12,021,953 $51,967,386 $88,098,913 (11,591) (652,756) 418 22,709 (36,238) (2,896,456) (108,419,007) (208,874) (6,566,769) (38,500) 9,291,760 19,533,512 575,667 814,802 -- - -------------------------------------------------------------------------- $68,465,736 $ 85,617,814 $12,389,164 $46,238,128 $88,024,175 - -------------------------------------------------------------------------- $59,172,525 $ 66,384,060 $11,806,661 $45,233,165 $86,178,274 -- 136 -- -- --
SEE FINANCIAL NOTES 23 STATEMENTS OF OPERATIONS (UNAUDITED)
Core Growth Emerging Growth Small Cap Core Fund Fund Growth Fund - ---------------------------------------------------------------------------------------------- INVESMENT INCOME Interest $ 209,681 $ 126,237 $ 56,144 Dividend (1) 1,289,534 304,495 40,520 - ---------------------------------------------------------------------------------------------- Total investment income 1,499,215 430,732 96,664 EXPENSES Investment management fees 772,876 896,379 104,966 Administrative fees 231,864 134,457 31,490 Distribution fees: Standard shares 312,435 219,243 52,483 Administrative shares 2,434 4,233 -- Shareholder service fees: Standard shares 316,484 50,149 10,184 Institutional shares 367 55 -- Administrative shares 36 46 -- Transfer agent expenses: Standard shares 297,067 242,631 59,314 Institutional shares 1,101 185 -- Administrative shares 550 441 -- Accounting expenses 59,373 36,851 9,653 Custody expenses 5,703 3,619 1,781 Registration expenses 20,128 17,466 8,707 Trustee expenses 29,521 17,857 4,064 Other expenses 103,994 66,424 14,701 - ---------------------------------------------------------------------------------------------- Total expenses before reimbursements or waivers 2,153,933 1,690,036 297,343 Reimbursements or waivers from adviser -- -- -- Reimbursements or waivers from distributor (16,925) (11,813) (2,736) - ---------------------------------------------------------------------------------------------- Net expenses 2,137,008 1,678,223 294,607 - ---------------------------------------------------------------------------------------------- NET INVESTMENT INCOME/LOSS $ (637,793) $(1,247,491) $ (197,943) REALIZED AND UNREALIZED GAINS/LOSSES ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS Realized gains/losses on investments and foreign currency transactions $ 7,957,505 $ 9,746,411 $ 1,393,349 Change in unrealized appreciation/depreciation on investments and foreign currencies 3,365,463 (8,566,601) (1,269,018) - ---------------------------------------------------------------------------------------------- Net realized and unrealized gains/losses on investments and foreign currencies 11,322,968 1,179,810 124,331 CHANGE IN NET ASSETS FROM OPERATIONS $10,685,175 $ (67,681) $ (73,612) (1) Dividend income net of withholding taxes. For the six months ended December 31, 2007, withholding taxes for the Global Equity Fund were $2,178.
SEE FINANCIAL NOTES 24 FOR THE SIX MONTHS ENDED DECEMBER 31, 2007
Value Global Equity Balanced Income Money Market Fund Fund Fund Fund Fund - ----------------------------------------------------------------------- $ 62,472 $ 87,277 $ 89,952 $1,247,769 $2,239,210 480,947 484,437 65,821 -- -- - ----------------------------------------------------------------------- 543,419 571,714 155,773 1,247,769 2,239,210 237,114 422,224 39,501 151,947 150,121 50,810 63,334 9,116 35,065 64,338 73,137 103,765 15,192 58,441 -- -- 1,279 -- -- -- 10,163 23,576 3,545 12,573 21,526 2 26 -- -- 183 -- 18 -- -- -- 71,620 133,537 13,853 52,875 85,434 16 138 -- -- 735 -- 505 -- -- -- 13,220 26,194 8,480 13,971 17,304 1,746 4,340 2,507 2,940 5,446 11,150 17,012 8,058 7,275 16,011 6,280 8,099 1,164 4,642 8,139 20,717 30,760 4,387 16,858 30,504 - ----------------------------------------------------------------------- 495,975 834,807 105,803 356,587 399,741 (73,994) -- (26,157) -- -- (4,019) (5,789) (836) (3,183) -- - ----------------------------------------------------------------------- 417,962 829,018 78,810 353,404 399,741 - ----------------------------------------------------------------------- $ 125,457 $ (257,304) $ 76,963 $ 894,365 $1,839,469 $ (657,954) $3,838,931 $(177,771) $ 170,667 -- (761,648) 826,188 30,927 1,263,193 -- - ----------------------------------------------------------------------- (1,419,602) 4,665,119 (146,844) 1,433,860 -- $(1,294,145) $4,407,815 $ (69,881) $2,328,225 $1,839,469
SEE FINANCIAL NOTES 25 STATEMENTS OF CHANGES IN NET ASSETS
CORE GROWTH FUND EMERGING GROWTH FUND - ---------------------------------------------------------------------------------------------------------- For the For the six months six months ended For the ended For the 12/31/07 year ended 12/31/07 year ended (Unaudited) 06/30/07 (Unaudited) 06/30/07 - ---------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income/loss $ (637,793) $ 59,356 $ (1,247,491) $ (1,249,526) Realized gains/losses on investments and foreign currency transations 7,957,505 22,954,092 9,746,411 18,114,469 Change in unrealized appreciation/depreciation on investments and forieign currencies 3,365,463 9,443,863 (8,566,601) 5,259,708 - ---------------------------------------------------------------------------------------------------------- Change in net assets from operations 10,685,175 32,457,311 (67,681) 22,124,651 Dividends to Shareholders: From net investment income: Standard Shares -- -- -- -- Institutional Shares -- (267,821) -- -- Administrative Shares -- (3,435) -- -- From net realized gains on investments: Standard Shares (2,433,283) -- -- -- Institutional Shares (744,593) -- -- -- Administrative Shares (18,711) -- -- -- - ---------------------------------------------------------------------------------------------------------- Total dividends (3,196,587) (271,256) -- -- Change in net assets from capital transactions 3,236,670 (46,703,158) (8,592,595) (16,568,980) CHANGE IN NET ASSETS $ 10,725,258 $(14,517,103) $ (8,660,276) $ 5,555,671 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period $300,570,819 $315,087,922 $182,229,389 $176,673,718 End of period $311,296,077 $300,570,819 $173,569,113 $182,229,389 - ---------------------------------------------------------------------------------------------------------- Accumulated (distributions in excess of) net investment income/loss $ (637,793) -- $ (1,247,491) -- - ---------------------------------------------------------------------------------------------------------- CAPITAL TRANSACTIONS Standard Shares Proceeds from shares issued $ 5,381,164 $ 11,987,796 $ 8,203,672 $ 17,850,867 Dividends reinvested 2,375,443 -- -- -- Cost of shares redeemed (18,636,121) (58,212,483) (15,489,481) (32,484,880) ------------------------------------------------------ Net change (10,879,514) (46,224,687) (7,285,809) (14,634,013) ------------------------------------------------------ Institutional Shares Proceeds from shares issued $ 36,407,896 $ 22,907,918 $ 52,475 $ 110,287 Dividends reinvested 728,853 260,617 -- -- Cost of shares redeemed (23,059,760) (23,655,264) (40,833) (568,881) ------------------------------------------------------ Net change 14,076,989 (486,729) 11,642 (458,594) ------------------------------------------------------ Administrative Shares Proceeds from shares issued $ 117,700 $ 295,116 $ 158,322 $ 432,065 Dividends reinvested 18,711 3,435 -- -- Cost of shares redeemed (97,216) (290,293) (1,476,750) (1,908,438) ------------------------------------------------------ Net change 39,195 8,258 (1,318,428) (1,476,373) ------------------------------------------------------ CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 3,236,670 $(46,703,158) $ (8,592,595) $(16,568,980) - ---------------------------------------------------------------------------------------------------------- SHARE TRANSACTIONS Standard Shares Issued 232,423 570,483 439,730 1,041,779 Reinvested 100,399 -- -- -- Redeemed (801,309) (2,762,464) (832,875) (1,896,311) ------------------------------------------------------ Net change (468,487) (2,191,981) (393,145) (854,532) ------------------------------------------------------ Institutional Shares Issued 1,853,305 1,265,704 2,639 6,012 Reinvested 36,571 14,850 -- -- Redeemed (1,188,546) (1,335,466) (2,026) (32,123) ------------------------------------------------------ Net change 701,330 (54,912) 613 (26,111) ------------------------------------------------------ Administrative Shares Issued 4,894 13,711 8,248 24,460 Reinvested 767 160 -- -- Redeemed (4,004) (13,525) (75,005) (106,436) ------------------------------------------------------ Net change 1,657 346 (66,757) (81,976) ------------------------------------------------------ CHANGE IN SHARES FROM SHARE TRANSACTIONS 234,500 (2,246,547) (459,289) (962,619) - ----------------------------------------------------------------------------------------------------------
SEE FINANCIAL NOTES 26
SMALL CAP CORE GROWTH FUND VALUE FUND - ----------------------------------------------------------- For the For the six months six months ended For the year ended For the year 12/31/07 ended 12/31/07 ended (Unaudited) 06/30/07 (Unaudited) 06/30/07 - ----------------------------------------------------------- $ (197,943) $ (257,733) $ 125,457 $ 212,668 1,393,349 2,559,643 (657,954) 4,566,736 (1,269,018) 3,014,717 (761,648) 4,599,628 - ----------------------------------------------------------- (73,612) 5,316,627 (1,294,145) 9,379,032 -- -- (156,728) (156,486) -- -- (57,933) (32,960) -- -- -- -- (3,299,694) (1,113,792) -- -- -- -- -- -- -- -- -- -- - ----------------------------------------------------------- (3,299,694) (1,113,792) (214,661) (189,446) 1,646,537 (282,388) 5,804,169 16,463,300 $(1,726,769) $ 3,920,447 $ 4,295,363 $25,652,886 - ----------------------------------------------------------- - ----------------------------------------------------------- $41,830,389 $37,909,942 $64,170,373 $38,517,487 $40,103,620 $41,830,389 $68,465,736 $64,170,373 - ----------------------------------------------------------- $ (197,943) -- $ (11,591) $ 77,613 - ----------------------------------------------------------- $ 4,055,734 $ 8,206,292 $ 9,097,043 $23,089,245 3,133,672 1,065,027 149,751 147,501 (5,542,869) (9,553,707) (5,400,558) (7,879,983) - ----------------------------------------------------------- 1,646,537 (282,388) 3,846,236 15,356,763 - ----------------------------------------------------------- -- -- $ 1,900,000 $ 1,073,577 -- -- 57,933 32,960 -- -- -- -- - ----------------------------------------------------------- -- -- 1,957,933 1,106,537 - ----------------------------------------------------------- -- -- -- -- -- -- -- -- -- -- -- -- - ----------------------------------------------------------- -- -- -- -- - ----------------------------------------------------------- $ 1,646,537 $ (282,388) $ 5,804,169 $16,463,300 - ----------------------------------------------------------- 295,150 659,884 603,432 1,635,323 243,676 86,799 9,885 10,528 (403,503) (760,894) (357,463) (561,158) - ----------------------------------------------------------- 135,323 (14,211) 255,854 1,084,693 - ----------------------------------------------------------- -- -- 128,640 77,788 -- -- 3,824 2,354 -- -- -- -- - ----------------------------------------------------------- -- -- 132,464 80,142 - ----------------------------------------------------------- -- -- -- -- -- -- -- -- -- -- -- -- - ----------------------------------------------------------- -- -- -- -- - ----------------------------------------------------------- 135,323 (14,211) 388,318 1,164,835 - -----------------------------------------------------------
SEE FINANCIAL NOTES 27 STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL EQUITY FUND BALANCED FUND - ---------------------------------------------------------------------------------------------------------- For the For the six months six months ended For the ended For the 12/31/07 year ended 12/31/07 year ended (Unaudited) 06/30/07 (Unaudited) 06/30/07 - ---------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income/loss $ (257,304) $ 130,311 $ 76,963 $ 166,111 Realized gains/losses on investments and foreign currency transactions 3,838,931 8,768,100 (177,771) 861,077 Change in unrealized appreciation/depreciation on investments and foreign currencies 826,188 3,906,892 30,927 256,234 - ---------------------------------------------------------------------------------------------------------- Change in net assets from operations 4,407,815 12,805,303 (69,881) 1,283,422 Dividends to Shareholders: From net investment income: Standard Shares (37,679) -- (76,033) (165,712) Institutional Shares (2,273) -- -- -- Administrative Shares (3,243) -- -- -- From net realized gains on investments: Standard Shares -- -- (868,662) (160,217) - ---------------------------------------------------------------------------------------------------------- Total dividends (43,195) -- (944,695) (325,929) Change in net assets from capital transactions (1,871,454) (11,239,914) 1,603,205 (237,534) CHANGE IN NET ASSETS $ 2,493,166 $ 1,565,389 $ 588,629 $ 719,959 - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period $ 83,124,648 $ 81,559,259 $ 11,800,535 $ 11,080,576 End of period $ 85,617,814 $ 83,124,648 $ 12,389,164 $ 11,800,535 - ---------------------------------------------------------------------------------------------------------- Accumulated (distributions in excess of) net investment income/loss $ (652,756) $ (352,257) $ 418 $ (512) - ---------------------------------------------------------------------------------------------------------- CAPITAL TRANSACTIONS Standard Shares Proceeds from shares issued $ 4,262,386 $ 8,295,007 $ 1,231,525 $ 1,839,305 Dividends reinvested 35,823 -- 924,565 303,088 Cost of shares redeemed (6,192,070) (18,526,500) (552,885) (2,379,927) ------------------------------------------------------ Net change (1,893,861) (10,231,493) 1,603,205 (237,534) ------------------------------------------------------ Institutional Shares Proceeds from shares issued $ -- $ 10,408 -- -- Dividends reinvested 6 -- -- -- Cost of shares redeemed (30,471) (410,482) -- -- ------------------------------------------------------ Net change (30,465) (400,074) -- -- ------------------------------------------------------ Administrative Shares Proceeds from shares issued $ 89,429 $ 188,720 -- -- Dividends reinvested 3,243 -- -- -- Cost of shares redeemed (39,800) (797,067) -- -- ------------------------------------------------------ Net change 52,872 (608,347) -- -- ------------------------------------------------------ CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (1,871,454) $(11,239,914) $ 1,603,205 $ (237,534) - ---------------------------------------------------------------------------------------------------------- SHARE TRANSACTIONS Standard Shares Issued 194,682 423,164 93,384 145,765 Reinvested 1,589 -- 74,640 23,875 Redeemed (283,061) (943,976) (42,124) (187,256) ------------------------------------------------------ Net change (86,790) (520,812) 125,900 (17,616) ------------------------------------------------------ Institutional Shares Issued -- 494 -- -- Reinvested -- -- -- -- Redeemed (1,387) (20,506) -- -- ------------------------------------------------------ Net change (1,387) (20,012) -- -- ------------------------------------------------------ Administrative Shares Issued 3,987 9,461 -- -- Reinvested 141 -- -- -- Redeemed (1,810) (39,819) -- -- ------------------------------------------------------ Net change 2,318 (30,358) -- -- ------------------------------------------------------ CHANGE IN SHARES FROM SHARE TRANSACTIONS (85,859) (571,182) 125,900 (17,616) - ----------------------------------------------------------------------------------------------------------
SEE FINANCIAL NOTES 28
INCOME FUND MONEY MARKET FUND - ----------------------------------------------------------- For the For the six months six months ended For the year ended For the year 12/31/07 ended 12/31/07 ended (Unaudited) 06/30/07 (Unaudited) 06/30/07 - ----------------------------------------------------------- $ 894,365 $ 1,936,277 $ 1,839,469 $ 3,790,387 170,667 66,811 -- 96 1,263,193 290,021 -- -- - ----------------------------------------------------------- 2,328,225 2,293,109 1,839,469 3,790,483 (877,100) (1,880,480) (1,636,324) (3,307,059) -- -- (241,133) (482,567) -- -- -- -- -- -- -- -- - ----------------------------------------------------------- (877,100) (1,880,480) (1,877,457) (3,789,626) (1,978,449) (3,967,851) 5,530,119 (1,629,502) $ (527,324) $(3,555,222) $ 5,492,131 $(1,628,645) - ----------------------------------------------------------- - ----------------------------------------------------------- $46,765,452 $50,320,674 $82,532,044 $84,160,689 $46,238,128 $46,765,452 $88,024,175 $82,532,044 - ----------------------------------------------------------- $ 22,709 $ 5,444 $ (36,238) $ 1,750 - ----------------------------------------------------------- $ 2,132,273 $ 5,138,791 $34,665,310 $65,280,521 797,712 1,711,712 1,584,475 3,201,732 (4,908,434) (10,818,354) (32,082,871) (69,727,223) - ----------------------------------------------------------- (1,978,449) (3,967,851) 4,166,914 (1,244,970) - ----------------------------------------------------------- -- -- $ 2,723,068 $ 4,849,568 -- -- 240,550 481,559 -- -- (1,600,413) (5,715,659) - ----------------------------------------------------------- -- -- 1,363,205 (384,532) - ----------------------------------------------------------- -- -- -- -- -- -- -- -- -- -- -- -- - ----------------------------------------------------------- -- -- -- -- - ----------------------------------------------------------- $(1,978,449) $(3,967,851) $ 5,530,119 $(1,629,502) - ----------------------------------------------------------- 219,472 529,874 34,665,310 65,280,521 81,795 176,434 1,584,475 3,201,732 (505,982) (1,112,958) (32,082,871) (69,727,223) - ----------------------------------------------------------- (204,715) (406,650) 4,166,914 (1,244,970) - ----------------------------------------------------------- -- -- 2,723,068 4,849,568 -- -- 240,550 481,559 -- -- (1,600,413) (5,715,659) - ----------------------------------------------------------- -- -- 1,363,205 (384,532) - ----------------------------------------------------------- -- -- -- -- -- -- -- -- -- -- -- -- - ----------------------------------------------------------- -- -- -- -- - ----------------------------------------------------------- (204,715) (406,650) 5,530,119 (1,629,502) - -----------------------------------------------------------
SEE FINANCIAL NOTES 29 FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA INVESTMENT ACTIVITIES DIVIDENDS - ------------------------------------------------------------------------------------------------------------------ Net asset Net realized value, Net and unrealized Total from From net beginning investment gains/losses investment investment of period income/loss on investments operations income - ------------------------------------------------------------------------------------------------------------------ CORE GROWTH FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------------------ Six months ended December 31, 2007 (Unaudited) $22.77 (0.07) 0.89 0.82 -- Year ended June 30, 2007 20.41 (0.02) 2.38 2.36 -- Year ended June 30, 2006 19.72 (0.09) 0.78 0.69 -- Year ended June 30, 2005 18.10 (0.06) 1.68 1.62 -- Year ended June 30, 2004 16.44 (0.12) 1.78 1.66 -- Year ended June 30, 2003 16.73 (0.04) (0.25) (0.29) -- INSTITUTIONAL SHARES - ------------------------------------------------------------------------------------------------------------------ Six months ended December 31, 2007 (Unaudited) $19.15 0.02 0.74 0.76 -- Year ended June 30, 2007 17.15 0.12 2.00 2.12 (0.12) Year ended June 30, 2006 16.45 0.06 0.64 0.70 -- Year ended June 30, 2005 14.99 0.07 1.39 1.46 -- Year ended June 30, 2004 13.52 0.01 1.46 1.47 -- Year ended June 30, 2003 13.66 0.05 (0.19) (0.14) -- ADMINISTRATIVE SHARES - ------------------------------------------------------------------------------------------------------------------ Six months ended December 31, 2007 (Unaudited) $23.44 (0.01) 0.90 0.89 -- Year ended June 30, 2007 20.96 0.06 2.46 2.52 (0.04) Year ended June 30, 2006 20.17 --(3) 0.79 0.79 -- Year ended June 30, 2005 18.44 0.02 1.71 1.73 -- Year ended June 30, 2004 16.68 (0.08) 1.84 1.76 -- Year ended June 30, 2003 16.91 0.01 (0.24) (0.23) -- - ------------------------------------------------------------------------------------------------------------------ EMERGING GROWTH FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------------------ Six months ended December 31, 2007 (Unaudited) $18.58 (0.13) 0.12 (0.01) -- Year ended June 30, 2007 16.40 (0.12)(4) 2.30 2.18 -- Year ended June 30, 2006 14.10 (0.20)(4) 2.50 2.30 -- Year ended June 30, 2005 13.01 (0.18)(4) 1.27 1.09 -- Year ended June 30, 2004 10.96 (0.20) 2.25 2.05 -- Year ended June 30, 2003 11.82 (0.17) (0.69) (0.86) -- INSTITUTIONAL SHARES - ------------------------------------------------------------------------------------------------------------------ Six months ended December 31, 2007 (Unaudited) $19.48 (0.09) 0.13 0.04 -- Year ended June 30, 2007 17.11 (0.05)(4) 2.42 2.37 -- Year ended June 30, 2006 14.62 (0.12)(4) 2.61 2.49 -- Year ended June 30, 2005 13.41 (0.10)(4) 1.31 1.21 -- Year ended June 30, 2004 11.23 (0.15) 2.33 2.18 -- Year ended June 30, 2003 12.02 (0.10) (0.69) (0.79) -- ADMINISTRATIVE SHARES - ------------------------------------------------------------------------------------------------------------------ Six months ended December 31, 2007 (Unaudited) $19.06 (0.12) 0.14 0.02 -- Year ended June 30, 2007 16.77 (0.07)(4) 2.36 2.29 -- Year ended June 30, 2006 14.37 (0.16)(4) 2.56 2.40 -- Year ended June 30, 2005 13.22 (0.14)(4) 1.29 1.15 -- Year ended June 30, 2004 11.11 (0.14) 2.25 2.11 -- Year ended June 30, 2003 11.92 (0.10) (0.71) (0.81) -- - ------------------------------------------------------------------------------------------------------------------ (1) Not Annualized. (2) Annualized. (3) Less than $0.005 per share. (4) Based on average shares outstanding.
SEE FINANCIAL NOTES 30
TO SHAREHOLDERS RATIOS AND SUPPLEMENTAL DATA - ---------------------------------------------------------------------------------------------------- Net Ratio of From Net asset assets, expenses to net Total value, Total end of average net realized dividends to Redemption end return period assets, net of gains shareholders fee of period (%) ($ X 1,000) reimbursement (%) - ---------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------------ (0.23) (0.23) -- $23.36 3.60(1) $245,189 1.52(2) -- -- -- 22.77 11.56 249,707 1.52 -- -- -- 20.41 3.50 268,593 1.52 -- -- -- 19.72 8.95 278,940 1.55 -- -- -- 18.10 10.10 290,352 1.50 -- -- -- 16.44 (1.73) 285,339 1.37 - ------------------------------------------------------------------------------------------------------------------------------------ (0.23) (0.23) -- $19.68 3.97(1) $ 64,151 0.80(2) -- (0.12) -- 19.15 12.39 49,001 0.79 -- -- -- 17.15 4.26 44,836 0.80 -- -- -- 16.45 9.74 43,083 0.80 -- -- -- 14.99 10.96 52,842 0.77 -- -- -- 13.52 (1.02) 63,571 0.69 - ------------------------------------------------------------------------------------------------------------------------------------ (0.23) (0.23) -- $24.10 3.80(1) $ 1,955 1.09(2) -- (0.04) -- 23.44 12.06 1,863 1.10 -- -- -- 20.96 3.92 1,659 1.12 -- -- -- 20.17 9.38 1,667 1.14 -- -- -- 18.44 10.55 1,635 1.11 -- -- -- 16.68 (1.36) 2,426 1.00 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ -- -- -- $18.57 (0.05)(1) $170,111 1.88(2) -- -- -- 18.58 13.29 177,514 1.88 -- -- -- 16.40 16.31 170,704 1.90 -- -- -- 14.10 8.38 157,963 1.96 -- -- -- 13.01 18.70 165,782 1.93 -- -- -- 10.96 (7.28) 157,911 1.95 - ------------------------------------------------------------------------------------------------------------------------------------ -- -- -- $19.52 0.21(1) $ 528 1.41(2) -- -- -- 19.48 13.85 515 1.38 -- -- -- 17.11 17.03 899 1.35 -- -- -- 14.62 9.02 2,633 1.33 -- -- -- 13.41 19.41 3,534 1.30 -- -- -- 11.23 (6.57) 5,379 1.25 - ------------------------------------------------------------------------------------------------------------------------------------ -- -- -- $19.08 0.10(1) $ 2,931 1.58(2) -- -- -- 19.06 13.66 4,200 1.57 -- -- -- 16.77 16.70 5,071 1.60 -- -- -- 14.37 8.70 5,270 1.64 -- -- -- 13.22 18.99 11,584 1.60 -- -- -- 11.11 (6.80) 8,561 1.51 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS AND SUPPLEMENTAL DATA - --- ---------------------------------------------- Ratio of net Ratio of investment expenses to income/loss average net Portfolio to average net assets, prior to turnover assets (%) reimbursement (%) rate (%) - --- (0.55)(2) 1.54(2) 16.73(1) (0.08) 1.52 153.08 (0.43) 1.52 101.35 (0.32) 1.55 101.34 (0.65) 1.52 228.43 (0.28) 1.53 183.75 - --- 0.18(2) 0.80(2) 16.73(1) 0.62 0.79 153.08 0.30 0.80 101.35 0.42 0.80 101.34 0.08 0.79 228.43 0.36 0.76 183.75 - --- (0.12)(2) 1.10(2) 16.73(1) 0.32 1.10 153.08 (0.02) 1.12 101.35 0.09 1.14 101.34 (0.27) 1.13 228.43 0.09 1.06 183.75 - --- - --- (1.40)(2) 1.90(2) 31.23(1) (0.72) 1.88 47.54 (1.30) 1.90 60.19 (1.39) 1.96 109.56 (1.47) 1.94 151.80 (1.56) 1.97 315.89 - --- (0.92)(2) 1.41(2) 31.23(1) (0.29) 1.38 47.54 (0.77) 1.35 60.19 (0.76) 1.33 109.56 (0.85) 1.31 151.80 (0.86) 1.28 315.89 - --- (1.10)(2) 1.59(2) 31.23(1) (0.39) 1.57 47.54 (1.00) 1.60 60.19 (1.08) 1.64 109.56 (1.13) 1.62 151.80 (1.13) 1.54 315.89 - ---
SEE FINANCIAL NOTES 31 FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA INVESTMENT ACTIVITIES DIVIDENDS - -------------------------------------------------------------------------------------------------------------------------- Net realized Net asset and unrealized value, Net gains/losses Total from From net beginning investment on investments investment investment of period income/loss and foreign currencies operations income - -------------------------------------------------------------------------------------------------------------------------- SMALL CAP CORE GROWTH FUND STANDARD SHARES - -------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2007 (Unaudited) $13.84 (0.06) 0.04 (0.02) -- Year ended June 30, 2007 12.48 (0.09) 1.82 1.73 -- Year ended June 30, 2006 11.00 (0.09) 1.57 1.48 -- Year ended June 30, 2005 10.84 (0.11) 0.77 0.66 -- Year ended June 30, 2004 8.67 (0.13) 2.30 2.17 -- Year ended June 30, 2003 9.18 (0.09) (0.42) (0.51) -- - -------------------------------------------------------------------------------------------------------------------------- VALUE FUND STANDARD SHARES - -------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2007 (Unaudited) $15.31 0.03 (0.34) (0.31) (0.04) Year ended June 30, 2007 12.74 0.04 2.58 2.62 (0.05) Year ended June 30, 2006 11.60 0.02 1.12 1.14 -- Year ended June 30, 2005 10.51 (0.01) 1.10 1.09 -- Year ended June 30, 2004 8.64 (0.02) 1.89 1.87 -- Year ended June 30, 2003 8.74 (0.05) (0.05) (0.10) -- INSTITUTIONAL SHARES - -------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2007 (Unaudited) $15.34 0.04 (0.33) (0.29) (0.09) Year ended June 30, 2007 12.72 0.10 2.59 2.69 (0.07) For the period ended June 30, 2006(4) 12.81 0.02 (0.11) (0.09) -- - -------------------------------------------------------------------------------------------------------------------------- GLOBAL EQUITY FUND STANDARD SHARES - -------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2007 (Unaudited) $21.43 (0.07)(1) 1.23 1.16 (0.01) Year ended June 30, 2007 18.33 0.03(1) 3.07 3.10 -- Year ended June 30, 2006 15.86 (0.01)(1) 2.48 2.47 -- Year ended June 30, 2005 15.18 0.02(1) 0.66 0.68 -- Year ended June 30, 2004 13.39 (0.10)(1) 1.89 1.79 -- Year ended June 30, 2003 14.22 (0.03)(1) (0.82) (0.85) -- INSTITUTIONAL SHARES - -------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2007 (Unaudited) $22.42 (0.01)(1) 1.28 1.27 (0.13) Year ended June 30, 2007 19.05 0.13(1) 3.24 3.37 -- Year ended June 30, 2006 16.39 0.07(1) 2.59 2.66 -- Year ended June 30, 2005 15.58 0.12(1) 0.69 0.81 -- Year ended June 30, 2004 13.65 0.04(1) 1.89 1.93 -- Year ended June 30, 2003 14.40 0.05(1) (0.82) (0.77) -- ADMINISTRATIVE SHARES - -------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2007 (Unaudited) $21.88 (0.04)(1) 1.25 1.21 (0.07) Year ended June 30, 2007 18.66 0.06(1) 3.16 3.22 -- Year ended June 30, 2006 16.11 0.04(1) 2.51 2.55 -- Year ended June 30, 2005 15.36 0.06(1) 0.69 0.75 -- Year ended June 30, 2004 13.51 (0.02)(1) 1.87 1.85 -- Year ended June 30, 2003 14.30 0.01(1) (0.82) (0.81) -- - -------------------------------------------------------------------------------------------------------------------------- (1) Based on average shares outstanding. (2) Not annualized. (3) Annualized. (4) For the period March 31, 2006, commencement of operations, to June 30, 2006. (5) Less than $0.005 per share.
SEE FINANCIAL NOTES 32
TO SHAREHOLDERS RATIOS AND SUPPLEMENTAL DATA - --------------------------------------------------------------------------------------------------------------------- Net Ratio of Ratio of net From Net asset assets, expenses to investment net Total value, Total end of average net income/loss realized dividends to Redemption end return period assets, net of to average net gains shareholders fee (1) of period (%) ($ X 1,000) reimbursement (%) assets (%) - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- (1.12) (1.12) -- $12.70 (0.24)(2) $ 40,104 1.41(3) (0.95)(3) (0.37) (0.37) -- 13.84 14.22 41,830 1.42 (0.67) -- -- -- 12.48 13.45 37,910 1.44 (0.83) (0.50) (0.50) -- 11.00 6.21 30,059 1.51 (1.07) -- -- -- 10.84 25.03 29,701 1.53 (1.37) -- -- -- 8.67 (5.56) 17,821 1.45 (1.12) - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- -- (0.04) -- $14.96 (2.09)(2) $ 58,892 1.29(3) 0.32(3) -- (0.05) -- 15.31 20.63 56,385 1.29 0.37 -- -- -- 12.74 9.83 33,081 1.29 0.15 -- -- -- 11.60 10.37 27,791 1.70 (0.11) -- -- -- 10.51 21.64 23,871 1.78 (0.23) -- -- -- 8.64 (1.14) 16,226 1.90 (0.62) - --------------------------------------------------------------------------------------------------------------------- -- (0.09) -- $14.96 (1.89)(2) $ 9,574 0.90(3) 0.72(3) -- (0.07) -- 15.34 21.16 7,785 0.90 0.78 -- -- -- 12.72 (0.70)(2) 5,436 0.90(3) 0.64(3) - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- -- (0.01) --(5) $22.58 5.41(2) $ 84,151 1.97(3) (0.62)(3) -- -- --(5) 21.43 16.91 81,750 1.98 0.15 -- -- --(5) 18.33 15.57 79,441 2.01 (0.06) -- -- --(5) 15.86 4.48 80,384 2.05 0.13 -- -- --(5) 15.18 13.37 95,625 2.01 (0.60) -- -- 0.02 13.39 (5.84) 101,846 1.91 (0.26) - --------------------------------------------------------------------------------------------------------------------- -- (0.13) --(5) $23.56 5.68(2) $ 403 1.44(3) (0.09)(3) -- -- --(5) 22.42 17.69 414 1.39 0.65 -- -- --(5) 19.05 16.23 733 1.40 0.38 -- -- --(5) 16.39 5.20 2,891 1.39 0.75 -- -- --(5) 15.58 14.14 5,244 1.37 0.25 -- -- 0.02 13.65 (5.21) 6,688 1.26 0.42 - --------------------------------------------------------------------------------------------------------------------- -- (0.07) --(5) $23.02 5.54(2) $ 1,064 1.70(3) (0.34)(3) -- -- --(5) 21.88 17.26 961 1.71 0.28 -- -- --(5) 18.66 15.83 1,385 1.73 0.20 -- -- --(5) 16.11 4.88 1,566 1.73 0.40 -- -- --(5) 15.36 13.69 2,142 1.71 (0.11) -- -- 0.02 13.51 (5.52) 2,059 1.59 0.11 - --------------------------------------------------------------------------------------------------------------------- RATIOS AND SUPPLEMENTAL DATA - --- ----------------------------- Ratio of expenses to average net Portfolio assets, prior to turnover reimbursement (%) rate (%) - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- 1.42(3) 40.43(2) 1.42 53.78 1.44 96.80 1.51 120.89 1.53 207.80 1.58 349.79 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- 1.53(3) 28.16(2) 1.61 40.28 1.62 58.32 1.70 172.95 1.78 130.18 1.90 209.72 - --------------------------------------------------------------------------------------------------------------------- 1.09(3) 28.16(2) 1.14 40.28 1.26(3) 58.32(2) - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- 1.99(3) 21.13(2) 1.98 58.74 2.01 36.77 2.05 80.36 2.01 49.16 1.91 42.05 - --------------------------------------------------------------------------------------------------------------------- 1.44(3) 21.13(2) 1.39 58.74 1.40 36.77 1.39 80.36 1.37 49.16 1.26 42.05 - --------------------------------------------------------------------------------------------------------------------- 1.71(3) 21.13(2) 1.71 58.74 1.73 36.77 1.73 80.36 1.71 49.16 1.59 42.05 - ---------------------------------------------------------------------------------------------------------------------
SEE FINANCIAL NOTES 33 FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA INVESTMENT ACTIVITIES DIVIDENDS - --------------------------------------------------------------------------------------------------------- Net asset Net realized value, Net and unrealized Total from From net beginning investment gains/losses investment investment of period income/loss on investments operations income - --------------------------------------------------------------------------------------------------------- BALANCED FUND STANDARD SHARES - --------------------------------------------------------------------------------------------------------- Six months ended December 31, 2007 (Unaudited) $13.30 0.08 (0.14) (0.06) (0.08) Year ended June 30, 2007 12.24 0.19 1.24 1.43 (0.19) Year ended June 30, 2006 11.87 0.13 0.37 0.50 (0.13) Year ended June 30, 2005 11.35 0.12 0.75 0.87 (0.12) Year ended June 30, 2004 10.47 0.06 1.12 1.18 (0.06) Period ended June 30, 2003(4) 10.00 0.02 0.47 0.49 (0.02) - --------------------------------------------------------------------------------------------------------- INCOME FUND STANDARD SHARES - --------------------------------------------------------------------------------------------------------- Six months ended December 31, 2007 (Unaudited) $ 9.57 0.19 0.31 0.50 (0.19) Year ended June 30, 2007 9.51 0.39 0.05 0.44 (0.38) Year ended June 30, 2006 10.00 0.32 (0.48) (0.16) (0.33) Year ended June 30, 2005 9.86 0.37 0.15 0.52 (0.38) Year ended June 30, 2004 10.28 0.34 (0.40) (0.06) (0.36) Year ended June 30, 2003 9.62 0.37 0.69 1.06 (0.40) - --------------------------------------------------------------------------------------------------------- MONEY MARKET FUND STANDARD SHARES - --------------------------------------------------------------------------------------------------------- Six months ended December 31, 2007 (Unaudited) $ 1.00 0.02 -- 0.02 (0.02) Year ended June 30, 2007 1.00 0.04 -- 0.04 (0.04) Year ended June 30, 2006 1.00 0.03 -- 0.03 (0.03) Year ended June 30, 2005 1.00 0.01 -- 0.01 (0.01) Year ended June 30, 2004 1.00 --(3) -- --(3) --(3) Year ended June 30, 2003 1.00 0.01 -- 0.01 (0.01) INSTITUTIONAL SHARES - --------------------------------------------------------------------------------------------------------- Six months ended December 31, 2007 (Unaudited) $ 1.00 0.02 -- 0.02 (0.02) Year ended June 30, 2007 1.00 0.05 -- 0.05 (0.05) Year ended June 30, 2006 1.00 0.04 -- 0.04 (0.04) Year ended June 30, 2005 1.00 0.02 -- 0.02 (0.02) Year ended June 30, 2004 1.00 --(3) -- --(3) --(3) Year ended June 30, 2003 1.00 0.01 -- 0.01 (0.01) - --------------------------------------------------------------------------------------------------------- (1) Not Annualized. (2) Annualized. (3) Less than $0.005 per share. (4) For the period December 20, 2002, commencement of operations, to June 30, 2003.
SEE FINANCIAL NOTES 34
TO SHAREHOLDERS RATIOS AND SUPPLEMENTAL DATA - --------------------------------------------------------------------------------------------------------------------- Net Ratio of Ratio of net From Net asset assets, expenses to investment net Total value, Total end of average net income/loss realized dividends to Redemption end return period assets, net of to average net gains shareholders fee of period (%) ($ x 1,000) reimbursement (%) assets (%) - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- (0.93) (1.01) -- $12.23 (0.52)(1) $ 12,389 1.30(2) 1.27(2) (0.18) (0.37) -- 13.30 11.81 11,801 1.30 1.45 -- (0.13) -- 12.24 4.17 11,081 1.30 1.10 (0.23) (0.35) -- 11.87 7.76 5,491 1.30 1.07 (0.24) (0.30) -- 11.35 11.31 2,804 1.30 0.60 -- (0.02) -- 10.47 4.87(1) 1,061 1.30(2) 0.41(2) - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- -- (0.19) -- $ 9.88 5.21(1) $ 46,238 1.52(2) 3.84(2) -- (0.38) -- 9.57 4.60 46,765 1.48 3.97 -- (0.33) -- 9.51 (1.66) 50,321 1.49 3.28 -- (0.38) -- 10.00 5.34 56,597 1.48 3.66 -- (0.36) -- 9.86 (0.63) 59,562 1.45 3.28 -- (0.40) -- 10.28 11.28 69,137 1.37 3.80 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- -- (0.02) -- $ 1.00 2.21(1) $ 77,149 0.97(2) 4.27(2) -- (0.04) -- 1.00 4.45 73,016 0.95 4.37 -- (0.03) -- 1.00 3.27 74,260 0.98 3.22 -- (0.01) -- 1.00 1.21 76,724 1.00 1.19 -- --(3) -- 1.00 0.10 83,231 0.98 0.10 -- (0.01) -- 1.00 0.65 104,641 0.93 0.65 - --------------------------------------------------------------------------------------------------------------------- -- (0.02) -- $ 1.00 2.34(1) $ 10,875 0.70(2) 4.53(2) -- (0.05) -- 1.00 4.72 9,516 0.69 4.63 -- (0.04) -- 1.00 3.57 9,901 0.69 3.48 -- (0.02) -- 1.00 1.53 12,763 0.68 1.55 -- --(3) -- 1.00 0.41 11,011 0.67 0.41 -- (0.01) -- 1.00 0.95 10,892 0.63 0.98 - --------------------------------------------------------------------------------------------------------------------- TO RATIOS AND SUPPLEMENTAL DATA - --- ----------------------------- Ratio of expenses to average net Portfolio assets, prior to turnover reimbursement (%) rate (%) - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- 1.75(2) 24.73(1) 1.76 99.86 1.80 89.13 2.33 109.56 4.30 98.20 16.73(2) 140.42(1) - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- 1.53(2) 51.67(1) 1.48 225.80 1.49 490.92 1.48 111.76 1.45 64.37 1.37 195.73 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- 0.97(2) N/A 0.95 N/A 0.98 N/A 1.00 N/A 0.98 N/A 0.93 N/A - --------------------------------------------------------------------------------------------------------------------- 0.70(2) N/A 0.69 N/A 0.69 N/A 0.68 N/A 0.67 N/A 0.63 N/A - ---------------------------------------------------------------------------------------------------------------------
SEE FINANCIAL NOTES 35 FINANCIAL NOTES (UNAUDITED) ORGANIZATION Citizens Funds (the "trust"), a Massachusetts business trust, is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"). The trust offers the following funds (individually a "fund," collectively the "funds"):
FUND SHORT NAME - ---------------------------------------------------------------------------------- CITIZENS CORE GROWTH FUND Core Growth Fund CITIZENS EMERGING GROWTH FUND Emerging Growth Fund CITIZENS SMALL CAP CORE GROWTH FUND Small Cap Core Growth Fund CITIZENS VALUE FUND Value Fund CITIZENS GLOBAL EQUITY FUND Global Equity Fund CITIZENS BALANCED FUND Balanced Fund CITIZENS INCOME FUND Income Fund CITIZENS MONEY MARKET FUND Money Market Fund - ----------------------------------------------------------------------------------
The funds are authorized to issue an unlimited number of shares of beneficial interest with no par value. The Core Growth Fund, Emerging Growth Fund, and Global Equity Fund currently offer three classes of shares: Standard shares, Institutional shares and Administrative shares. The Money Market Fund and Value Fund offer two classes of shares: Standard shares and Institutional shares. The Small Cap Core Growth Fund, Balanced Fund, and Income Fund offer one class of shares: Standard shares. Each class of shares in the funds has identical rights and privileges except with respect to fees paid under class-specific agreements, voting rights on matters affecting a single class of shares, and the exchange privilege of each class of shares. INDEMNIFICATIONS Under the funds' organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the trust. In addition, in the normal course of business, the funds enter into contracts with their vendors and others that provide for general indemnifications. The funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements requires management to make estimates and assumptions 36 that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. SECURITIES VALUATION The board of trustees has approved procedures to be used to value each fund's securities for the purpose of determining the fund's net asset value (NAV). Equity securities traded on an exchange are valued at the market price determined as the closing sale or official closing price on that exchange. For securities not traded on an exchange, or if an exchange price is not readily available, securities are valued at a market price determined by independent third-party pricing vendors approved by the funds' valuation committee. The market price for debt obligations is determined by an independent third-party pricing service which uses a matrix, formula or other objective method that considers the effect of market indices, yield curves and other specific adjustments. Short-term securities maturing within 60 days and all securities in the Money Market Fund are valued at amortized cost, unless it is determined that using this method would not reflect a security's fair value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. If a price for a given security is unavailable or deemed unreliable by the adviser, the market price may be determined using quotations received from one or more brokers that make a market in the security. When such prices or quotations are not available, or when the adviser believes they are unreliable, the funds' valuation committee will value securities using fair value procedures approved by the funds' board of trustees. Fair value procedures may also be used if the adviser determines that a significant event has occurred between the time at which a market price is determined and the time at which a fund's NAV is calculated. The Global Equity Fund uses a fair value model developed by an independent third-party pricing service in its valuation consideration for foreign equity securities on days when there is a specific percentage change in the value of a domestic equity security index. This percentage is determined by the funds' valuation committee. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME During the period, security transactions were accounted for no later than one business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on trade date. 37 FINANCIAL NOTES (UNAUDITED) The cost of securities sold is determined on the identified cost basis, unless otherwise specified. Interest income is recorded on an accrual basis and includes, where applicable, the amortization or accretion of a premium or discount. Dividend income is recorded on the ex-dividend date. FOREIGN CURRENCY TRANSLATION The accounting records of the funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the current rate of exchange. Purchases and sales of securities, and income and expenses, are translated into U.S. dollars at the prevailing rate of exchange on the respective dates of such transactions. The changes in foreign exchange rates on investments are not isolated on the Statement of Operations. Such fluctuations are included with the net realized and unrealized gain or loss on investments. FOREIGN CURRENCY CONTRACTS Foreign currency contracts are used to facilitate transactions in foreign- denominated securities. Losses may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contract's terms. The U.S. dollar value of foreign currency contracts is determined using the current rate of exchange. There were no foreign currency contracts open at December 31, 2007. REPURCHASE AGREEMENTS The funds may acquire repurchase agreements with an entity that is a member bank of the Federal Reserve System and government securities dealers that are on the Federal Reserve Bank of New York's list of primary dealers, collateralized by instruments issued by the U.S. government, its agencies or instrumentalities. The repurchase price generally equals the price paid by a fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying securities. It is the funds' policy to receive collateral securities of which the value, including accrued interest, is at least equal to 102% of the amount to be repaid to the funds under each agreement at its maturity. Collateral subject to repurchase agreements is held by the funds' custodian. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral by the funds may be delayed or limited. 38 RESTRICTED SECURITIES The funds are permitted to invest in privately placed securities. These securities may be resold in transactions exempt from registration, or to the public, if the securities are registered under the Securities Act of 1933. Disposal of these securities may involve time-consuming negotiations and expense, and the prompt sale at an acceptable price may be difficult. REDEMPTION FEE The Global Equity Fund charges a redemption fee of 2% (paid to the fund) with respect to shares of the fund redeemed or exchanged within 60 days of purchase. The fee does not apply to shares purchased through the reinvestment of dividends or other distributions, redemptions by the fund of accounts with below minimum balances, redemptions due to shareholder death or disability, or certain omnibus accounts or retirement plans. For the period ended December 31, 2007 and the year ended June 30, 2007, the Global Equity Fund collected $2,725 and $1,940 respectively, in redemption fees. These fees are included in the "change in net assets from capital transactions" amounts in the Statements of Changes in Net Assets. DIVIDENDS TO SHAREHOLDERS The Core Growth Fund, Emerging Growth Fund, Small Cap Core Growth Fund, Value Fund, and Global Equity Fund declare and distribute dividends from net investment income, if any, to shareholders annually. The Balanced Fund declares and distributes dividends from net investment income to shareholders quarterly. The Income Fund declares and distributes dividends from net investment income to shareholders monthly. Dividends from net investment income for the Money Market Fund are declared daily and paid monthly. The funds' net realized gains, if any, are distributed to shareholders at least annually. Additional dividends may also be paid to the funds' shareholders to the extent necessary to avoid federal excise tax on certain undistributed income and net realized gains. The amount of dividends from net investment income and net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (i.e., reclassification of market discounts, gain/loss, paydowns, and 39 FINANCIAL NOTES (UNAUDITED) distributions), such amounts are reclassified to capital; temporary differences do not require reclassification. FEES AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT MANAGEMENT FEE Citizens Advisers, Inc. (the "adviser") serves as adviser to each of the funds. Under the terms of the management contract, the adviser is paid a fee that is computed daily based on an annual rate for each fund's average daily net assets. Those rates are as follows:
FUND FEE RATE - ------------------------------------------------------ Core Growth Fund 0.50% Emerging Growth Fund 1.00% Small Cap Core Growth Fund 0.50% Value Fund 0.70% Global Equity Fund 1.00% Balanced Fund 0.65% Income Fund 0.65% Money Market Fund 0.35% - ------------------------------------------------------
Dwight Asset Management Company (the "subadviser") serves as the subadviser for the Income Fund. For its services, the subadviser receives a fee computed daily based on an annual rate of 0.25% of the fund's average daily net assets. The fee is paid by the adviser. DISTRIBUTION FEE Citizens Securities, Inc. (the "distributor") is a wholly owned subsidiary of the adviser and serves as the funds' distributor. Pursuant to Rule 12b-1 under the 1940 Act, the trust's shareholders have adopted a separate distribution plan with respect to the funds' Standard and Administrative shares pursuant to which the funds, except the Money Market Fund, compensate the distributor for services in an amount equal to 0.25% per annum of average annual net assets represented by such shares. ADMINISTRATIVE AND SHAREHOLDER SERVICE FEES The adviser, with whom certain officers and a trustee are affiliated, performs administrative duties for the trust under a separate administrative contract, which provides for the reimbursement of out-of-pocket expenses as well as fees for services rendered. In accordance with the terms of the administrative contract, fees are accrued daily based on average daily net assets of each fund at the annual rate of 0.15%. In 40 addition, Citizens Advisers provides a number of administrative services to the trust, relating primarily to shareholder services and communications, and is paid an account fee and is reimbursed for out-of-pocket expenses as well, for providing such services and communications for each of the individual funds with the exception of the Core Growth Fund, Standard shares. The Core Growth Fund, Standard shares may be charged a shareholder service fee of up to 0.35% based on the average daily net assets of the class. For the period ended December 31, 2007, a fee of 0.25% was charged. TRANSFER AGENCY, FUND ACCOUNTING AND CUSTODY Citi Fund Services Ohio, Inc. ("Citi") (formerly BISYS Fund Services Ohio, Inc.) provides transfer agency and fund accounting services to the funds pursuant to certain fee arrangements. As transfer agent for the funds, Citi is paid a fee based on the number of funds and shareholder accounts, other service fees, and is reimbursed for out-of-pocket expenses as well. Transfer agent expenses also include the cost of services rendered by third parties to provide sub-transfer agency services. As fund accountant for the funds, Citi is paid a fee based on assets (ranging from 0.0125% -- 0.035%) and the number of share classes per fund, subject to certain minimums, other service fees, and is reimbursed for out-of-pocket expenses as well. Fifth Third Bank acts as a custodian for the funds and is paid a fee based on the funds' assets and other transaction based fees, subject to certain minimums. Custody expenses may be incurred or offset from fees or credits arising from cash balances maintained on deposit. There were no custody credits received for the period ended December 31, 2007. TRUSTEE FEES All of the officers and one of the trustees of the trust are "interested persons," as defined in the 1940 Act, of the adviser. Currently, each trustee who is not an "interested person" receives an annual retainer of $12,000 and $1,250 for each day's attendance at a trustee meeting. The independent trustees include a chair of the board, who receives an additional annual retainer of $5,000; and an audit committee chair, social responsibility committee chair, and nominating committee chair who each receive an additional annual retainer of $2,500. ALLOCATIONS Expenses directly attributable to a fund are charged to that fund. Expenses not directly attributable to a fund are allocated proportionately 41 FINANCIAL NOTES (UNAUDITED) among various or all funds within the trust in relation to the net assets of each fund or on another reasonable basis. Expenses specific to a class of shares are charged to that class. Expenses not directly attributable to a class are allocated among the classes of a fund in relation to the net assets of the classes or on another reasonable basis. FEE REDUCTIONS AND REIMBURSEMENTS For the period ended December 31, 2007, the adviser limited the total expenses, exclusive of taxes, brokerage commissions and extraordinary expenses, for certain funds to the extent they exceeded the following limits:
FUND EXPENSE LIMITATION - ------------------------------------------------------------ Value Fund -- Standard Class 1.29% Value Fund -- Institutional Class 0.90% Balanced Fund -- Standard Class 1.30% - ------------------------------------------------------------
Expense limitations for the Value Fund Standard shares and Institutional shares listed above are contractual. The adviser may recoup the investment management fees waived or limited and other expenses reimbursed by it within three years from the fiscal year in which they were waived/reimbursed. Such repayments may be made twice monthly, but in no event less frequently than semi-annually, but only to the extent that such repayments would not cause annualized operating expenses of the Value Fund to exceed any expense limitation. As of December 31, 2007, the amount that may be potentially be recouped by the adviser from the Value Fund is $44,181 expiring on June 30, 2009 and $154,113 expiring on June 30, 2010 and $73,994 expiring on June 30, 2011. The Balanced Fund expense limitation listed above is voluntary and may be reduced or terminated by the adviser at any time and is not subject to recoupment in subsequent fiscal periods. As of November 12, 2007, the distributor agreed to voluntarily reduce the distribution fee by 0.05% with respect to the funds' Standard and Administrative shares, except such shares of the Money Market Fund which do not pay a distribution fee. These voluntary waivers may be reduced or terminated by the distributor at any time. 42 INVESTMENT TRANSACTIONS The following summarizes purchases and sales of investment securities other than short-term investments and U.S. Government securities, by fund for the period ended December 31, 2007:
FUND PURCHASES SALES - -------------------------------------------------------------------------- Core Growth Fund $51,633,574 $50,272,165 Emerging Growth Fund 54,175,078 73,275,192 Small Cap Core Growth Fund 15,962,667 17,121,193 Value Fund 24,219,422 18,286,967 Global Equity Fund 16,980,493 21,137,955 Balanced Fund 3,121,368 2,897,434 Income Fund 7,517,526 4,287,431 - --------------------------------------------------------------------------
The following summarizes purchases and sales of U.S. Government securities by fund for the period ended December 31, 2007:
FUND PURCHASES SALES - -------------------------------------------------------------------------- Balanced Fund $ 205,938 $ -- Income Fund 15,991,955 20,084,629 - --------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION Each fund is a separate taxable entity for federal tax purposes. Each fund has qualified and intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and distributes substantially all of its taxable net investment income and net realized gains, if any, to its shareholders. At December 31, 2007 the cost, gross unrealized appreciation and gross unrealized depreciation on securities, for federal income tax purposes, were as follows:
NET UNREALIZED TAX UNREALIZED TAX UNREALIZED APPRECIATION/ FUND TAX COST APPRECIATION DEPRECIATION DEPRECIATION - --------------------------------------------------------------------------------------------------------------------- Core Growth Fund $277,007,282 $51,644,471 $(16,465,725) $35,178,746 Emerging Growth Fund 135,194,825 46,352,540 (7,148,160) 39,204,380 Small Cap Core Growth Fund 31,946,769 9,657,351 (1,432,858) 8,224,493 Value Fund 59,164,926 12,323,098 (3,023,739) 9,299,359 Global Equity Fund 66,384,060 21,034,790 (1,502,910) 19,531,880 Balanced Fund 11,807,145 1,127,855 (552,672) 575,183 Income Fund 45,279,681 916,460 (148,174) 768,286 Money Market Fund 86,178,274 -- -- -- - ---------------------------------------------------------------------------------------------------------------------
43 FINANCIAL NOTES (UNAUDITED) SUBSEQUENT EVENTS In February 2008, the fund accounting agent to Citizens Money Market Fund advised the fund's management company that, due to an error on the part of the fund accounting agent, an over-distribution of income occurred during the period of July 2007 through February 2008. The fund accounting agent has estimated that the amount of the over-distribution was immaterial to the fund's financial statements as of December 31, 2007. The adviser has signed an asset purchase agreement with Sentinel Asset Management, Inc. relating to a proposed acquisition by Sentinel of the assets related to the adviser's mutual fund advisory business. In connection with such acquisition, it is proposed that each of the Citizens funds reorganize into a new or existing Sentinel fund. Each such reorganization of a Citizens fund is subject to the approval of the shareholders of such fund, and a proxy statement/prospectus seeking such approval was distributed to shareholders on or about January 14, 2008. NEW ACCOUNTING PRONOUNCEMENTS In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and expanded disclosures about fair value measurements. As of December 31, 2007, the funds do not believe the adoption of SFAS No. 157 will significantly impact the financial statement amounts, however; additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. In July 2006, FASB issued FASB Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109." FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, 44 "Accounting for Income Taxes." This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective on the last business day of the first required financial reporting period for fiscal years beginning after December 15, 2006. Management has concluded that as of December 31, 2007, there are no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the fund's federal tax returns filed in the 3-year period ended December 31, 2007 remains subject to examination by the Internal Revenue Service. 45 SUPPLEMENTAL INFORMATION (UNAUDITED) FEDERAL TAX INFORMATION PORTFOLIO HOLDINGS DISCLOSURE Each fund, except the Money Market Fund, posts its full portfolio holdings monthly, with a 30-day lag, on www.citizensfunds.com. The portfolio holdings are posted within approximately five business days after month end. The funds' portfolio holdings will remain available until the following month's information is posted. In addition, each fund's, except the Money Market Fund's, top ten portfolio holdings in order of position size and as a percentage of the total portfolio as well as sector breakdowns and portfolio characteristics are available quarterly, within approximately fifteen business days after quarter end on www.citizensfunds.com. Each fund's top ten portfolio holdings, sector breakdown and portfolio characteristics remain available until the following quarter's information is posted. Details of the funds' portfolio holdings disclosure policies and procedures, including a discussion of any exceptions, are contained in the funds' SAI. Each fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year within 60 days of such quarters' end on Form N-Q. You can receive a copy of the fund's Form N-Q without charge by calling 800.223.7010 or by visiting the website at www.citizensfunds.com. Each fund's Form N-Q is also available through a variety of methods. You can: - -- find it on the EDGAR Database of the SEC internet site at www.sec.gov - -- have copies sent to you (after paying a copying fee) by writing the SEC's Public Reference Section, Washington, D.C. 20549-0102, or by electronic request to publicinfo@sec.gov - -- view and copy it in person at the SEC's Public Reference Room in Washington D.C.; for more information call 202.942.8090. 46 SUPPLEMENTAL INFORMATION (UNAUDITED) TABLE OF SHAREHOLDER EXPENSES As a shareholder of the funds, you may incur two types of costs: (1) redemption fees (for Global Equity Fund only) and (2) ongoing costs, including management fees; distribution fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2007 through December 31, 2007. ACTUAL EXPENSES The table on the page opposite provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table on the page opposite also provides information about hypothetical account values and hypothetical expenses based on each fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees and other indivdual shareholder fees mentioned in the prospectus. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. *Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by 184/366 (to reflect the one-half year period). 47
DECEMBER 31, 2007 - ------------------------------------------------------------------------------------------------------------------------- BEGINNING ENDING ANNUALIZED ACCOUNT ACCOUNT EXPENSES PAID EXPENSE RATIO VALUE VALUE DURING PERIOD(1) DURING THE PERIOD 07/01/07 12/31/07 07/01/07-12/31/07 07/01/07-12/31/07 - ------------------------------------------------------------------------------------------------------------------------- CORE GROWTH FUND Standard -- actual $1,000.00 $1,036.00 $ 7.78 1.52% Standard -- hypothetical 1,000.00 1,017.50 7.71 1.52% Institutional -- actual 1,000.00 1,039.70 4.10 0.80% Institutional -- hypothetical 1,000.00 1,021.11 4.06 0.80% Administrative -- actual 1,000.00 1,038.00 5.58 1.09% Administrative -- hypothetical 1,000.00 1,019.66 5.53 1.09% - ------------------------------------------------------------------------------------------------------------------------- EMERGING GROWTH FUND Standard -- actual $1,000.00 $ 999.50 $ 9.45 1.88% Standard -- hypothetical 1,000.00 1,015.69 9.53 1.88% Institutional -- actual 1,000.00 1,002.10 7.10 1.41% Institutional -- hypothetical 1,000.00 1,018.05 7.15 1.41% Administrative -- actual 1,000.00 1,001.00 7.95 1.58% Administrative -- hypothetical 1,000.00 1,017.19 8.01 1.58% - ------------------------------------------------------------------------------------------------------------------------- SMALL CAP CORE GROWTH FUND Standard -- actual $1,000.00 $ 997.60 $ 7.08 1.41% Standard -- hypothetical 1,000.00 1,018.05 7.15 1.41% - ------------------------------------------------------------------------------------------------------------------------- VALUE FUND Standard -- actual $1,000.00 $ 979.10 $ 6.42 1.29% Standard -- hypothetical 1,000.00 1,018.65 6.55 1.29% Institutional -- actual 1,000.00 981.10 4.48 0.90% Institutional -- hypothetical 1,000.00 1,020.61 4.57 0.90% - ------------------------------------------------------------------------------------------------------------------------- GLOBAL EQUITY FUND Standard -- actual $1,000.00 $1,054.10 $10.17 1.97% Standard -- hypothetical 1,000.00 1,015.23 9.98 1.97% Institutional -- actual 1,000.00 1,056.80 7.44 1.44% Institutional -- hypothetical 1,000.00 1,017.90 7.30 1.44% Administrative -- actual 1,000.00 1,055.40 8.78 1.70% Administrative -- hypothetical 1,000.00 1,016.59 8.62 1.70% - ------------------------------------------------------------------------------------------------------------------------- BALANCED FUND Standard -- actual $1,000.00 $ 994.80 $ 6.52 1.30% Standard -- hypothetical 1,000.00 1,018.60 6.60 1.30% - ------------------------------------------------------------------------------------------------------------------------- INCOME FUND Standard -- actual $1,000.00 $1,052.10 $ 7.84 1.52% Standard -- hypothetical 1,000.00 1,017.50 7.71 1.52% - ------------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUND Standard -- actual $1,000.00 $1,022.10 $ 4.93 0.97% Standard -- hypothetical 1,000.00 1,020.26 4.93 0.97% Institutional -- actual 1,000.00 1,023.40 3.56 0.70% Institutional -- hypothetical 1,000.00 1,021.62 3.56 0.70% - -------------------------------------------------------------------------------------------------------------------------
(1) Expenses equal the average account value times the fund's annualized expense ratio multiplied by 184/366 (to reflect the one-half year period). 48 NOTES NOTES NOTES NOTES [CITIZENS FUNDS LOGO] TRUSTEES CUSTODIAN Walter D. Bristol, Jr. Fifth Third Bank Sophia Collier Cincinnati, OH 45263 Jeannie H. Diefenderfer Pablo S. Eisenberg TRANSFER AND ACCOUNTING AGENT Orlando Hernandez Citi Fund Services Ohio, Inc. Martha S. Pope Columbus, OH 43219 Henry L.P. Schmelzer LEGAL COUNSEL MANAGER Bingham McCutchen LLP Citizens Advisers, Inc. Boston, MA 02110 One Harbour Place Suite 400 INDEPENDENT REGISTERED PUBLIC Portsmouth, NH 03801 ACCOUNTING FIRM 800.223.7010 PricewaterhouseCoopers LLP 603.436.5152 Columbus, OH 43215 DISTRIBUTOR Citizens Securities, Inc. One Harbour Place Suite 400 Portsmouth, NH 03801 800.223.7010 603.436.5152 Citizens Funds are distributed by Citizens Securities, Inc., Portsmouth, NH 03801 and are available through such popular mutual fund supermarkets as Charles Schwab's Mutual Fund OneSource(R) and Fidelity Investments' FundsNetwork(R). Citizens Funds(R) is a trademark of Citizens Advisers, Inc. This report is intended for shareholders of Citizens Funds and is not authorized for distribution to other persons unless accompanied or preceded by a prospectus. PLEASE CONSIDER THE INVESTMENT OBJECTIVES ,RISKS , CHARGES AND EXPENSES OF CITIZENS FUNDS CAREFULLY BEFORE INVESTING . FOR THIS AND OTHER INFORMATION, PLEASE VISIT WWW. CITIZENSFUNDS.COM OR CALL 800.223.7010 FOR A FREE PROSPECTUS AND READ IT CAREFULLY BEFORE INVESTING. (c) 2008 CITIZENS ADVISERS, INC. ITEM 2. CODE OF ETHICS. Not Applicable to Semi-Annual Report. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not Applicable to Semi-Annual Report. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not Applicable to Semi-Annual Report. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not Applicable. ITEM 6. SCHEDULE OF INVESTMENTS A schedule of investments for each series of the registrant is included as part of the report to shareholders of such series under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not Applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not Applicable ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS Not Applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant is (i) accumulated and communicated to the investment company's management, including its certifying officers to allow timely decision regarding required disclosure, and (ii) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Not Applicable. (a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto. (a)(3) Not Applicable. (b) Certifications pursuant to Rule 30a-2(b) are 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. Citizens Funds By: /s/ Sophia Collier ----------------------- Sophia Collier President Date: 2/25/08 ------------------ 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/ Sophia Collier ----------------------- Sophia Collier President Date: 2/25/08 ------------------ By: /s/ Trudance L.C. Bakke ----------------------- Trudance L.C. Bakke Treasurer Date: 2/25/08 ------------------ EX-99.CERT 2 b68042a1exv99wcert.txt CERTIFICATIONS CERTIFICATIONS I, Sophia Collier, certify that: 1. I have reviewed this report on Form N-CSR of Citizens Funds (the "registrant"); 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. February 25, 2008 /s/ Sophia Collier Date Sophia Collier President CERTIFICATIONS I, Trudance Bakke, certify that: 1. I have reviewed this report on Form N-CSR of Citizens Funds (the "registrant"); 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. February 25, 2008 /s/ Trudance Bakke Date Trudance Bakke Treasurer -----END PRIVACY-ENHANCED MESSAGE-----