-----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, Dl7zxW7+cmZCy3/zjXEK0zdUhdyL3U3yycY+G5SjviC2bM/iNv71P73HLvtONEoO 86s5LVke45YXVyvXTqho2Q== 0001047469-04-006907.txt : 20040308 0001047469-04-006907.hdr.sgml : 20040308 20040308133507 ACCESSION NUMBER: 0001047469-04-006907 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031231 FILED AS OF DATE: 20040308 EFFECTIVENESS DATE: 20040308 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: 04654278 BUSINESS ADDRESS: STREET 1: 230 COMMERCE WAY STREET 2: STE 300 CITY: PORTSMOUTH STATE: NH ZIP: 03801 BUSINESS PHONE: 6034365152 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 N-CSRS 1 a2129325zn-csrs.txt N-CSRS As filed with the Securities and Exchange Commission on March 08, 2004 File No. 811-03626 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANY CITIZENS FUNDS (Exact Name of Registrant as Specified in Charter) 230 Commerce Way, Portsmouth, New Hampshire 03801 (Address of Principal Executive Offices) Registrant's Telephone Number, including Area Code: (603) 436-5152 Sophia Collier Citizens Advisers, Inc. 230 Commerce Way Portsmouth, NH 03801 (Name and Address of Agent for Service) June 30, 2004 (Date of fiscal year end) December 31, 2003 (Date of reporting period) ITEM 1. REPORT TO SHAREHOLDERS. [CITIZENS FUNDS* LOGO] FUNDAMENTALLY STRONG. SOCIALLY RESPONSIBLE. SEMI-ANNUAL REPORT 12.31.2003 AND SUPPLEMENTAL COMMENTARY CITIZENS 300 FUND CITIZENS CORE GROWTH FUND CITIZENS EMERGING GROWTH FUND CITIZENS SMALL CAP CORE GROWTH FUND CITIZENS VALUE FUND CITIZENS GLOBAL EQUITY FUND CITIZENS BALANCED FUND CITIZENS ULTRA SHORT BOND FUND CITIZENS INCOME FUND CITIZENS MONEY MARKET FUND CITIZENS PRIME MONEY MARKET FUND TABLE OF CONTENTS SUPPLEMENTAL COMMENTARY LETTER FROM THE PRESIDENT 1 CITIZENS FOCUS: RESPONSIBLE INVESTING + ADVOCACY 2 SEMI-ANNUAL REPORT MARKET OVERVIEW 4 PORTFOLIO REVIEW 5 PORTFOLIO HOLDINGS 15 STATEMENTS OF ASSETS AND LIABILITIES 34 STATEMENTS OF OPERATIONS 36 STATEMENTS OF CHANGES IN NET ASSETS 38 FINANCIAL HIGHLIGHTS 42 FINANCIAL NOTES 48
["Supplemental Commentary" on pages 1-3 has not been included because it is not part of the Semi-annual report.] NNUAL REPORT MARKET OVERVIEW INVESTOR CONFIDENCE INCREASES In the final six months of 2003, investors moved from an attitude of hope that the economy would rebound to growing certainty that it finally had entered a period of sustained recovery. As confidence grew, stocks posted strong gains, with small- and mid-cap stocks leading the way. The Russell 2000 Index, the common benchmark for small-cap investing, appreciated by 24.92% during the six months, while the Standard & Poor's 500 Index, a measure of large-cap performance, gained 15.14%. While small-cap stocks significantly outpaced large-cap stocks during 2003, large caps appeared to gain strength in the final weeks of the year, possibly reflecting increased interest in larger, stable-growth stocks with the potential to perform well throughout an economic recovery. Reflecting the improving outlooks for growing profits and healthier balance sheets, corporate bonds continued to outperform U.S. Treasuries and other high-grade securities. The Merrill Lynch High Yield Master Index rose by 8.52% during the second half of 2003, while the Lehman Brothers Government Long Bond Index fell 3.79%. The weakening of the U.S. dollar and the improved outlook for the global economy also made foreign stocks attractive. Major foreign equity markets, as measured by the Morgan Stanley Capital International EAFE Index, climbed by 26.59% during the six months ended December 31, 2003. MOST ECONOMIC SIGNS WERE POSITIVE In the final six months of 2003, evidence of a recovery became increasingly apparent. In November, for example, the U.S. government revised upward its estimate of the rate of growth of the economy, reporting that gross domestic product (GDP) had grown at an annualized rate of 8.2% in the third quarter of the year. That rate reflected continued strength in the consumer sector, as well as new capital spending by corporations that had previously been postponing investments on plants and equipment. Corporate profits also were impressive, with an increasing number of companies meeting or exceeding their earnings estimates for the third and fourth quarters. After three years of cost-cutting, many companies had become highly efficient and able to grow their earnings substantially with virtually any increase in revenues. One concern that continued to worry some investors, however, was the job situation. But even that appeared to stabilize and show early signs of improvement. In November the economy added 57,000 non-farm jobs, a clear improvement over earlier in the year when the number of jobs was declining. In past economic recoveries, new job growth tended to be a lagging, rather than a leading, indicator of growth. GROWTH INVESTMENTS APPEAR ATTRACTIVE We have an optimistic outlook for investment prospects in 2004. Led by strength in China, the United States and Europe, the global economy is accelerating. We believe this is a positive for equity investments and corporate bonds. Domestically, the stock market appears well positioned to have another positive year, with large companies potentially in an improved position to outperform small companies. Smaller companies, the performance leaders during 2003, have been helped by the Federal Reserve Board's accommodative policy of low interest rates, which injected needed liquidity into the market. However, we believe that some small-cap stocks may have risen to valuations that can't be supported by their fundamentals. Moreover, Fed Chairman Alan Greenspan has indicated that short-term rates may begin to rise in 2004, perhaps by June. Larger companies, with more consistent and predictable earnings and stronger fundamentals, may be better positioned to outperform in the coming months. Going forward, we believe synchronized economic growth should be the dominant theme globally. As global demand increases, domestic manufacturers that have reduced their costs are well positioned to benefit from this global phenomenon, particularly during a period of weakness in the U.S. dollar. 4 PORTFOLIO REVIEW CITIZENS 300 FUND TOTAL RETURNS (as of 12/31/2003)
TICKER 6 1 5 SINCE SYMBOL MONTHS YEAR YEARS INCEPTION - ------------------------------------------------------------------------------- Standard shares CFCDX N/A N/A N/A 9.81%
The Citizens 300 Fund is off to a good start. It started on August 29, 2003, and finished the year with a return of 9.81%, versus the benchmark S&P 500 return of 10.99%. We are very pleased to have the Citizens 300 Fund available, as it offers shareholders an efficient manner in which to invest in companies included in the Citizens Index -- an index comprised of the stocks of 300 companies selected to represent the best companies within their respective industries. As would be expected, given the fund's strategy of investing its assets in companies based upon their market weight in the Citizens Index, the fund's performance was dominated by the results of its largest-sized companies within the Citizens Index versus the largest companies in the benchmark S&P 500 Index. In this "battle of the giants" strong performance by Pfizer (4.93% of the portfolio*), Intel (3.77% of the portfolio*), and Cisco (3.01% of the portfolio*) made the most substantial contribution to the fund's return versus the S&P 500. The fund's relative performance was hurt from a year-end rally in socially rejected names such as Exxon Mobil, Altria (formerly known as Philip Morris), Chevron and General Electric. Looking forward to 2004, we believe the Citizens 300 Fund is positioned to benefit from an improving economy, with overweights in the health care, information technology and consumer discretionary sectors. One company we will be watching during the upcoming year is Microsoft, our largest holding. During the second half of 2003, Microsoft (5.33% of the portfolio*) seemed to be stuck in a trading range between approximately $25 and $29 a share. The company is highly profitable as a result of its premier position in what looks like a maturing industry of desktop computing. One major potential catalyst for the stock could be an eventual announcement of the company's plans for its enormous cash horde, now totaling over $51 billion dollars. [SIDENOTE] GOAL Long-term capital appreciation STRATEGY Invests in companies that comprise the Citizens Index INCEPTION DATES Standard shares 08/29/03 IMPORTANT NOTES Past performance does not guarantee future results. All index and fund performance figures assume reinvestment of dividends and distributions. Index results do not include costs of investing, which would lower performance. The S&P 500 Index is comprised of 500 common stocks chosen for market size, liquidity and industry group representation. Indexes are unmanaged, and you cannot invest directly in them. When you sell your fund shares, they may be worth more or less than what you paid for them. Fee waivers were instituted during the period to maintain expense limits, without which returns would have been lower. *As of 12/31/03. Portfolio holdings are subject to change without notice. 5 PORTFOLIO REVIEW CITIZENS CORE GROWTH FUND AVERAGE ANNUAL RETURNS (as of 12/31/2003)
TICKER 6 1 5 SINCE SYMBOL MONTHS YEAR YEARS INCEPTION - -------------------------------------------------------------------------------- Standard shares WAIDX 12.35% 23.13% -5.45% 9.46% Institutional shares WINIX 12.81% 24.00% -4.80% 8.48% Administrative shares CGADX 12.59% 23.63% N/A -11.63%
The six months ended December 31, 2003, was a period of good positive performance for the fund, with a return of 12.35% for the fund's Standard shares. Our initial caution at the beginning of the period caused us to slightly underperform the 14.73% six-month return posted by the fund's benchmark, the Russell 1000 Growth Index. However, we were pleased with the fund's progress as the period progressed. The best performing sector for the fund during the period was telecommunications services, where Nextel Communications (0.83% of the portfolio*) appreciated by a remarkable 55%. Nextel's successful "push to talk" wireless service, combined with its low-cost spectrum acquisition strategy, makes it a uniquely positioned company within the wireless industry. Individual stocks that made significant contributions in the period were 3M (2.40% of the portfolio*), the large industrial company that has successfully executed a multi-year turnaround, and Flextronics, a contract manufacturer for high-technology firms. While no sector was negative in absolute terms, the fund's holdings in information technology, consumer discretionary and health care lagged slightly on a relative basis versus the benchmark. We were hurt by a poorly timed purchase of the hardware chain Lowes and by our ownership of Kohl's and Interactive Corp., both of which declined and were sold during the period. Looking forward, we believe the fund is well positioned for 2004. We are continuing our strategy of positioning the portfolio in quality growth "leaders." We have also included a healthy component of smaller companies that we consider to be "challengers" and "innovators" within their respective industries. We are not seeking to take substantial amounts of risk, but to position the portfolio to participate in the highest growth areas of the economy. Entering the first quarter of 2004, our largest overweighted industries versus the benchmark are biotechnology, semiconductors, diversified financial services and machinery, and our most significant underweights are pharmaceuticals and industrial conglomerates (largely as a result of not holding socially rejected General Electric). [SIDENOTE] GOAL Long-term capital appreciation STRATEGY Invests mainly in stocks of U.S. large-capitalization companies INCEPTION DATES Standard shares 03/03/95 Institutional shares 01/25/96 Administrative shares 02/04/00 IMPORTANT NOTES Past performance does not guarantee future results. All index and fund performance figures assume reinvestment of dividends and distributions. Index results do not include costs of investing, which would lower performance. The Russell 1000 Growth Index is an index comprised of large-sized U.S.companies. The index is unmanaged, and you cannot invest directly in it. When you sell your fund shares, they may be worth more or less than what you paid for them. Fee waivers were instituted in the past to maintain expense limits, without which returns would have been lower. *As of 12/31/03. Portfolio holdings are subject to change without notice. 6 CITIZENS EMERGING GROWTH FUND AVERAGE ANNUAL RETURNS (as of 12/31/2003)
TICKER 6 1 5 SINCE SYMBOL MONTHS YEAR YEARS INCEPTION - ----------------------------------------------------------------------------- Standard shares WAEGX 16.79% 31.55% 1.00% 11.84% Institutional shares CEGIX 17.10% 32.43% N/A -5.16% Administrative shares CGRDX 16.92% 32.01% N/A -12.30%
An improving economic picture coupled with the ability for companies to meet or beat earnings expectations set the stage for a strong rally in the second half of 2003. Following an impressive run-up during the second quarter of 2003, mid-cap stocks continued their ascent in the second half of the year, with the Citizens Emerging Growth Fund, Standard shares earning 16.79% for the period. The fund's benchmark, the Russell MidCap Growth Index, returned 20.19% for the same period. Good stock selection in the industrials sector was the biggest positive contributor to the fund's performance relative to the benchmark. Leading performers included Jet Blue Airways and Fastenal (2.16% of the portfolio*), a manufacturer of commercial building supplies. Career Education, an adult for-profit education provider, also performed quite well, aided by an improving economy and continued strong enrollment trends. Technology was the biggest contributor to the fund's underperformance versus the index. Concerns about the economic recovery and pickup in business spending caused a number of our technology stocks to falter, especially during the latter part of September. Technology stocks that adversely impacted performance included Hyperion Solutions, a business intelligence software company, and Globespan Virata, a telecommunications semiconductor chip and software manufacturer. We feel that the fundamental outlooks for these companies are sound, and as the recovery gathers steam we expect their results to accelerate accordingly. Within our health care holdings, another stock that negatively impacted performance during the period was Medimmune (1.31% of the portfolio*), a manufacturer of inhalable flu vaccines. The stock performed poorly during the period, mainly because Wal-Mart announced it was not going to stock the drug in its stores due to cost issues. Entering 2004, the portfolio is positioned relatively aggressively, as we continue to project economic acceleration, improvement in the job outlook, and increased willingness by businesses to spend on capital equipment, hiring and new product development. However, high valuations in certain sectors, such as technology and consumer discretionary, have prompted us to trim some weightings or exit some positions altogether. A few of the themes we are focused on include higher business spending, revenue growth, a recovering manufacturing base, a weaker U.S. dollar, and China's role in the global economy -- as a source of both demand and potential cost cutting for U.S. manufacturers. [SIDENOTE] GOAL Aggressive growth STRATEGY Invests mainly in stocks of young, growing, medium-capitalization companies INCEPTION DATES Standard shares 02/08/94 Institutional shares 11/01/99 Administrative shares 02/04/00 IMPORTANT NOTES Past performance does not guarantee future results. All index and fund performance figures assume reinvestment of dividends and distributions. Index results do not include costs of investing, which would lower performance. The Russell MidCap Growth Index includes those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The index is unmanaged, and you cannot invest directly in it. When you sell your fund shares, they may be worth more or less than what you paid for them. Fee waivers were instituted in the past to maintain expense limits, without which returns would have been lower. Investments in the Citizens Emerging Growth Fund involve unique risks, as small- and medium-sized companies may have inexperienced management, limited product line, a difficult time obtaining financing or market share, and their shares may be more volatile and not traded as frequently or in as large a volume as larger companies. *As of 12/31/03. Portfolio holdings are subject to change without notice. 7 PORTFOLIO REVIEW CITIZENS SMALL CAP CORE GROWTH FUND AVERAGE ANNUAL RETURNS (as of 12/31/2003)
TICKER 6 1 3 SINCE SYMBOL MONTHS YEAR YEARS INCEPTION - -------------------------------------------------------------------------------- Standard shares CSCSX 22.03% 39.21% 4.13 1.46%
After an impressive rally during the second quarter of 2003, small-cap stock prices continued to climb in the second half of the year. Within this favorable environment, the Citizens Small Cap Core Growth Fund earned 22.03% during the six-month period ended December 31, 2003, while the fund's benchmark, the Russell 2000 Growth Index, returned 24.48%. Health care, led by our holdings in medical devices, was our top-performing sector versus the benchmark during the period. Financial services was the second biggest contributor. Within the health care sector, attractive valuations and companies' continued ability to meet or exceed earnings expectations provided a favorable backdrop. Therasense (1.04% of the portfolio*), Intermune (2.05% of the portfolio*), Sangstat Medical Corporation, and Merit Medical Systems (0.53% of the portfolio*) performed strongly in the second half of 2003. Both Therasense and Sangstat were acquired during the period. Within financial services, Jeffries Inc. (1.54% of the portfolio*), a broker-dealer and investment bank, significantly outperformed versus the benchmark, as a booming high-yield market and increased trading volume boosted results. The fund's underperformance was due primarily to some of our technology picks. In addition, our holdings in the consumer discretionary and industrials sectors also underperformed. Concerns about the economic recovery and pickup in business spending caused a number of holdings to underperform, especially during the end of September. Within technology, we feel that the fundamental outlooks of the stocks we hold are sound -- in fact, technology was the fund's best performing sector in the fourth quarter of 2003. As the recovery gathers steam we expect their results to continue to improve. The portfolio is positioned relatively aggressively, as we continue to project economic acceleration, improvement in the job outlook, and increased willingness by businesses to spend on capital equipment, hiring and new product development. However, high valuations in certain sectors, such as technology and consumer discretionary, have prompted us to trim some weightings or exit some positions altogether. The themes we are focused on include higher business spending, revenue growth, a recovering manufacturing base, a weaker U.S. dollar, and China's role in the global economy -- as a source of both demand and potential cost cutting for U.S. manufacturers. [SIDENOTE] GOAL Capital appreciation STRATEGY Invests mainly in stocks of small-capitalization U.S. companies INCEPTION DATES Standard shares 12/28/99 IMPORTANT NOTES Past performance does not guarantee future results. All index and fund performance figures assume reinvestment of dividends and distributions. Index results do not include costs of investing, which would lower performance. The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The index is unmanaged, and you cannot invest directly in it. When you sell your fund shares, they may be worth more or less than what you paid for them. Fee waivers were instituted in the past to maintain expense limits, without which returns would have been lower. Investments in the Citizens Small Cap Core Growth Fund involve unique risks, as small- and medium-sized companies may have inexperienced management, limited product line, a difficult time obtaining financing or market share, and their shares may be more volatile and not traded as frequently or in as large a volume as larger companies. *As of 12/31/03. Portfolio holdings are subject to change without notice. 8 CITIZENS VALUE FUND AVERAGE ANNUAL RETURNS (as of 12/31/2003)
TICKER 6 1 5 SINCE SYMBOL MONTHS YEAR YEARS INCEPTION - -------------------------------------------------------------------------------- Standard shares(1) MYPVX 16.67% 33.51% 2.91% 7.49%
The Citizens Value Fund returned 16.67% for the six months ended December 31, 2003, outperforming the S&P 500 Index return of 15.14% and completing a successful year for the fund overall. The fund benefited strongly from its "relative value" strategy of selecting financially strong but out-of-favor companies that are selling below the average value of their peer groups. Our experience has been that the share prices of these types of companies rise as the companies make progress and Wall Street gradually reevaluates their worth. Examples of companies where our relative value theme worked well during the period include out-of-favor tech giant Hewlett-Packard (2.91% of the portfolio*) and CVS (1.99% of the portfolio*), the drugstore chain. Both companies appreciated nicely on the news of obvious fundamental improvements in both businesses. Another success was FleetBoston Financial, a Northeast bank selling at a low relative price-to-book value. Bank of America (2.43% of the portfolio*) proposed to acquire Fleet at a 30% premium. In December, the trend reversed a bit. Sin stocks and Rust Belt names so often found in the portfolios of classic value investors had a strong run. Companies such as Exxon Mobil, tobacco giant Altria (formerly known as Philip Morris), Boeing and U.S. Steel had impressive appreciation -- none of which we shared. Despite underperforming the benchmark during the month of December, the fund outperformed its benchmark during the six-month period. Looking forward, we will continue our relative value strategy in the coming year. We are positioned in essentially a sector-neutral manner with overweights in machinery, health care equipment, computers and peripherals, and food products. Our most underweighted industries are industrial conglomerates, pharmaceuticals and software. [SIDENOTE] GOAL Long-term capital appreciation STRATEGY Invests mainly in stocks and other equities of U.S. large-capitalization companies INCEPTION DATES Standard shares 06/13/96 IMPORTANT NOTES Past performance does not guarantee future results. All index and fund performance figures assume reinvestment of dividends and distributions. Index results do not include costs of investing, which would lower performance. The S&P 500 Index is an unmanaged index comprised of 500 common stocks chosen for market size, liquidity and industry group representation. The index is unmanaged, and you cannot invest directly in it. When you sell your fund shares, they may be worth more or less than what you paid for them. Fee waivers were instituted in the past to maintain expense limits, without which returns would have been lower. (1) Includes performance of the fund's predecessor, the Meyers Pride Value Fund, for the periods prior to September 24, 2001. *As of 12/31/03. Portfolio holdings are subject to change without notice. 9 PORTFOLIO REVIEW CITIZENS GLOBAL EQUITY FUND AVERAGE ANNUAL RETURNS (as of 12/31/2003)
TICKER 6 1 5 SINCE SYMBOL MONTHS YEAR YEARS INCEPTION - -------------------------------------------------------------------------------- Standard shares WAGEX 15.83% 21.55% -0.99% 6.64% Institutional shares CGEIX 16.26% 22.36% N/A -6.39% Administrative shares CEADX 16.06% 21.93% N/A -15.87%
A positive second quarter and a series of aggressive interest rate cuts worldwide over the course of the summer set the stage for a strong second half in 2003. Global markets were buoyed further by unexpectedly good corporate earnings and an uptick in investor confidence. In the second half of 2003, the Citizens Global Equity Fund, Standard shares returned 15.83%, while the MSCI World Index, the fund's benchmark, rose 19.79%. Health care and industrials were the fund's two best contributing sectors during the period. Industrials are classically defensive, and so their performance was in a sense unsurprising in the market environment discussed below. The health care sector's rise disguises wide dispersion in the returns of individual stocks. Biotech company Invitrogen (0.92% of the portfolio*), up more than 80% during the period, was by far our best performer, while most international pharmaceutical multi-nationals lagged the index. Much of the fund's underperformance relative to the benchmark reflected the nature of the market rally. High-quality stocks, in which the fund was predominantly invested, lagged the broader market, as more speculative stocks jumped dramatically from deeply depressed levels. Many of these lower-quality issues had been on the brink of serious financial problems. However, with the benefit of much lower interest rates, they became viable again within a very short period of time. Within this environment, market participants largely ignored financially secure blue chip companies -- in a quest for the biggest gains they could find, regardless of risk. With value stocks similarly outperforming growth stocks, this created a difficult headwind in terms of the fund's style, which is focused primarily on large, high-quality growth stocks. Negative contributors to performance included our underweighting in materials (largely through a lack of strong eligible candidates) and energy. Our slight underweight in financials was also slightly detrimental. The area in which we were most overweight, technology, also modestly detracted from performance, largely as a result of the wide dispersion among weak and strong performers. For example, within the software industry, SAP (1.53% of the portfolio*) rose more than 40%, yet Microsoft (2.27% of the portfolio*), moved up only 6% during the six-month period. Despite mixed results during the period, we regard many of our holdings as poised to do particularly well going into 2004. Given a continuing accommodative monetary policy, low inflation and improving corporate earnings, we're optimistic on global equity markets and believe that there is more progress to be made in the near term. [SIDENOTE] GOAL Capital appreciation STRATEGY Invests mainly in stocks and other equities of foreign and U.S. companies INCEPTION DATES Standard shares 02/08/94 Institutional shares 11/01/99 Administrative shares 02/04/00 IMPORTANT NOTES Past performance does not guarantee future results. All index and fund performance figures assume reinvestment of dividends and distributions. Index results do not include costs of investing, which would lower performance. The Morgan Stanley Capital International (MSCI) World Index is a market capitalization-weighted equity index of over 1,500 stocks traded in 22 world markets. The index is unmanaged, and you cannot invest directly in it. When you sell your fund shares, they may be worth more or less than what you paid for them. Fee waivers were instituted in the past to maintain expense limits, without which returns would have been lower. Investments in the Citizens Global Equity Fund involve risks of investing in foreign markets, including political instability and currency risks, excessive taxation, different financial and auditing standards, increased market volatility and other factors. *As of 12/31/03. Portfolio holdings are subject to change without notice. 10 CITIZENS BALANCED FUND AVERAGE ANNUAL RETURNS (as of 12/31/2003)
TICKER 6 1 5 SINCE SYMBOL MONTHS YEAR YEARS INCEPTION - -------------------------------------------------------------------------------- Standard shares CFBLX 10.53% 16.39% N/A 15.42%
For the six months ended December 31, 2003, the Citizens Balanced Fund had a total return of 10.53%, outpacing the return of its benchmark index, which returned 9.03%. The fund's benchmark index is a blended index comprised of 60% S&P 500 Index and 40% Lehman Brothers U.S. Aggregate Bond Index. The fund's average asset allocation during the period was 70% to equities and 30% to fixed-income securities. Within the equity portion of the portfolio our top performing sectors were information technology and industrials. Within information technology we benefited strongly from our holdings in Symantec (0.33% of the portfolio*), the anti-virus and Internet security company, and Flextronics, a contract manufacturer of high technology products. Our lowest performing sector during the period was health care. A top detractor in the health care area was Amgen (1.20% of the portfolio*), a large biotechnology company that declined by over 6% during the period. We continue to hold Amgen and believe the weakness in the stock will abate as company earnings and progress become more evident to Wall Street. At the end of the period, another factor that hindered performance versus the index was a strong rally by both Exxon Mobil and Altria, two companies that are socially rejected. In the fixed-income portion of the portfolio, the most positive contributions to performance came from our corporate holdings. The most significant gains came from our lower-quality and high-yield corporate holdings (commonly known as "junk bonds"). Specifically, Yum! Brands (0.39% of the portfolio*) and XTO Energy (0.34% of the portfolio*) performed well, as did The Gap (0.40% of the portfolio*) and Cox Communications (0.62% of the portfolio*). As the economy continues to show improvement, these high-yield companies have improved their balance sheets and, in turn, their corporate spreads should tighten versus Treasuries. Looking forward, the sector allocations within the equity portion of the Citizens Balanced Fund will be positioned closer to the market weighting of the benchmark. This strategy should be an added risk-control benefit. Entering 2004, we believe the fund is positioned for an improving economy with slight overweights in heath care, information technology and the consumer discretionary sectors. Within the fixed-income portion of the portfolio, we believe that corporate bonds will continue to outperform higher-quality government and agency issues. [SIDENOTE] GOAL Current income and capital appreciation STRATEGY Invests in a blend of stocks, bonds, and money market securities INCEPTION DATES Standard shares 12/20/02 IMPORTANT NOTES Past performance does not guarantee future results. All index and fund performance figures assume reinvestment of interest, dividends and distributions. Index results do not include costs of investing, which would lower performance. The S&P 500 Index is comprised of 500 common stocks chosen for market size, liquidity and industry group representation. The Lehman Brothers U.S. Aggregate Bond Index is an index of taxable, investment-grade fixed-income securities, including government, corporate, mortgage and asset-backed securities. The indexes are unmanaged, and you cannot invest directly in them. Interest rate increases can cause the value of bonds to decrease, meaning that a fund's bond investments may lose value in a rising interest rate environment. When you sell your fund shares, they may be worth more or less than what you paid for them. Fee waivers are currently in effect and have been instituted in the past to maintain expense limits, without which returns would have been lower. *As of 12/31/03. Portfolio holdings are subject to change without notice. 11 PORTFOLIO REVIEW CITIZENS ULTRA SHORT BOND FUND AVERAGE ANNUAL RETURNS (as of 12/31/2003)
TICKER 6 1 5 SINCE SYMBOL MONTHS YEAR YEARS INCEPTION - ----------------------------------------------------------------------------- Standard shares CFSBX 0.07% 1.65% N/A 1.97%
The economic picture brightened considerably during the six-month period ended December 31, 2003, as a growing number of factors pointed toward economic recovery. Better-than-expected economic data caused a moderate rise in shorter interest rates, versus a much larger move on the long end of the yield curve. With the inverse relationship of prices and yields, the prices of fixed-income securities moved lower as rates moved higher. During the period, the fund returned 0.07%. The fund's benchmark, the Merrill Lynch 1-Year Treasury Note Index, was up 0.57% during the same period. The fund's 30-day yield moved from 1.56% on June 30, 2003 to 1.72% as of December 31, 2003. Our focus on high-quality corporate bonds and asset-backed securities -- which at the end of the period represented 43% and 23% of the fund's assets, respectively -- continued to help performance versus the benchmark. While our exposure to asset-backed and mortgage-backed securities was helpful, our over-allocation to government agency issues underperformed relative to the Treasury market. In managing the fund, we continue to concentrate on net asset value (NAV) stability and increasing yield when possible. Our strategy during the period was to keep the fund's duration slightly shorter than the benchmark in anticipation of higher interest rates. Generally, the shorter a fund's (or bond's) duration, the less sensitive its share price is to changes in interest rates. The 2-year Treasury note, on which most short-term corporate bond prices are based, moved from 1.30% to 1.82% during the period. Most signs heading into 2004 point to a strong U.S. economy going forward. Unemployment is improving, retail sales (including automobile sales) are improving, and the manufacturing sector is on the upswing. That said, some negatives still exist. Increasing commodity prices and the downward spiral of the U.S. dollar continue to caution market participants. Sluggish wage growth also has put pressure on consumer confidence. On the positive side, the growth rate of the gross domestic product (GDP) was up from 3.3% in the second quarter to 8.2% in the third quarter of 2003, and and we believe will likely stay over 4% well into 2004. Overall, we believe the economy will continue to improve but the Federal Reserve will keep interest rates in check for the near term. Going forward we will continue to emphasize NAV stability, while monitoring interest rate movements and avoiding lower-quality issues that may negatively impact the fund. [SIDENOTE] GOAL High level of current income consistent with preservation of capital STRATEGY Invests mainly in short-duration investment-grade securities INCEPTION DATES Standard shares 11/21/02 IMPORTANT NOTES Past performance does not guarantee future results. All index and fund performance figures assume reinvestment of dividends and distributions. Index results do not include costs of investing, which would lower performance. The Merrill Lynch 1-Year Treasury Note Index tracks the performance of U.S. Treasury notes with maturities of approximately one year. The index is produced by Merrill Lynch, Pierce, Fenner & Smith, Inc. The index is unmanaged, and you cannot invest directly in it. Interest rate increases can cause the value of bonds to decrease, meaning that a bond fund investment may lose value in a rising interest rate environment. When you sell your fund shares, they may be worth more or less than what you paid for them. Fee waivers are currently in effect and have been instituted in the past to maintain expense limits, without which returns would have been lower. 12 CITIZENS INCOME FUND AVERAGE ANNUAL RETURNS (as of 12/31/2003)
TICKER 6 1 5 10 SYMBOL MONTHS YEAR YEARS YEARS - ------------------------------------------------------------------------ Standard shares WAIMX 0.12% 5.80% 3.98% 5.41%
The economic picture brightened considerably during the second half of 2003, as a growing number of factors pointed toward economic recovery. While improving economic indicators helped set a positive tone to the corporate bond market in the period, better-than-expected economic data caused a moderate rise in interest rates. As interest rates move higher, the prices of fixed-income securities typically move lower, creating a challenging scenario for bond fund managers. Citizens Income Fund, Standard shares returned 0.12% during the six-month period ended December 31, 2003. The benchmark Lehman Brothers U.S. Aggregate Bond Index gained 0.17% during the same period. Our corporate holdings continued to outperform versus the benchmark, with the most significant gains attributed to our lower-quality and high-yield corporate holdings (commonly known as "junk bonds"), including Domino's Pizza (1.71% of the portfolio*), Yum! Brands (1.92% of the portfolio*), Nextel Communications (1.71% of the portfolio*), and The Gap (1.96% of the portfolio*). The slight underperformance of the fund relative to the benchmark can be attributed mainly to the impact that rising interest rates had on intermediate-term securities during this time period. The yield on 5-year Treasury bonds increased 84 basis points, while the yield on 10-year Treasury bonds rose 73 basis points. Despite the fund's slight underperformance during the six-month period, it's worth noting the fund's outperformance over the full calendar year, where it gained 5.80% versus 4.10% for the benchmark index. Most signs heading into 2004 point to a strong U.S. economy. Unemployment is improving, retail sales (including automobile sales) are improving, and the manufacturing sector is on the upswing. That said, some negatives still exist. Increasing commodity prices and the downward spiral of the U.S. dollar continue to caution market participants. Sluggish wage growth also has tempered consumer confidence. On the positive side, the growth rate of the gross domestic product (GDP) was up from 3.3% in the second quarter to 8.2% in the third quarter of 2003, and we believe will likely stay over 4% well into 2004. Overall, we believe that the economy will continue to improve but the Federal Reserve will keep interest rates in check for the near term. [SIDENOTE] GOAL Current income and monthly dividend payment STRATEGY Invests mainly in bonds and mortgage-backed securities INCEPTION DATES Standard shares 06/10/92 IMPORTANT NOTES Past performance does not guarantee future results. All index and fund performance figures assume reinvestment of interest, dividends and distributions. Index results do not include costs of investing, which would lower performance. The Lehman Brothers U.S. Aggregate Bond Index is an index of taxable, investment-grade fixed-income securities, including government, corporate, mortgage and asset-backed securities. The index is unmanaged, and you cannot invest directly in it. Interest rate increases can cause the value of bonds to decrease, meaning that a bond fund investment may lose value in a rising interest rate environment. When you sell your fund shares, they may be worth more or less than what you paid for them. Fee waivers were instituted in the past to maintain expense limits, without which returns would have been lower. *As of 12/31/03. Portfolio holdings are subject to change without notice. 13 PORTFOLIO REVIEW CITIZENS MONEY MARKET FUND CITIZENS PRIME MONEY MARKET FUND AVERAGE ANNUAL RETURNS (as of 12/31/2003)
TICKER 7 DAY 6 1 5 10 SINCE SYMBOL SIMPLE YIELD MONTHS YEAR YEARS YEARS INCEPTION - ------------------------------------------------------------------------------------------------------- Money Market Fund Standard shares WKAXX 0.10% 0.03% 0.26% 2.82% 3.54% N/A Institutional shares WAIXX 0.39% 0.20% 0.56% 3.13% N/A 3.84% Prime Money Market Fund N/A 1.08% N/A N/A N/A N/A 0.55%
During the report period, the Citizens Money Market Fund invested substantially all of its assets in the Citizens Prime Money Market Fund, which has the same investment objective as the Citizens Money Market Fund. The following commentary is for the Citizens Prime Money Market Fund. The federal funds rate stayed steady throughout the second half of 2003 at 1.00% - -- still at its lowest level in 40 years. However, residual effects of a rate cut earlier in the year contributed to a general decline in money market fund rates. As time passes, higher-yielding money market securities "roll off" and are replaced with more recently issued securities, which pay lower yields. For example, 12 months ago money market funds were able to purchase a 1-year certificate of deposit (CD) yielding 1.25%. However, in a declining interest rate environment, when that CD matures, it is difficult to replace it with another one offering a comparable rate. With the expectation that longer rates will start to increase as the economy continues to show improvement, the fund's strategy during the six-month period was to stay shorter than our peers in terms of maturity. As of December 31, 2003, the weighted average maturity of the portfolio was 24 days. Most signs heading into 2004 point to a strong U.S. economy going forward. Unemployment is improving, retail sales (including automobile sales) are improving, and the manufacturing sector is on the upswing. That said, some negatives still exist. Increasing commodity prices and the downward spiral of the U.S. dollar continue to caution market participants. Sluggish wage growth also has put pressure on consumer confidence. On the positive side, the growth rate of the gross domestic product (GDP) was up from 3.3% in the second quarter to 8.2% in the third quarter of 2003, and we believe will likely stay over 4% well into 2004. Overall, we believe that the economy will continue to improve but the Federal Reserve will keep interest rates in check for the near term. Going forward, the fund remains focused on holding high-quality, socially responsible securities and avoiding companies with credit and headline risk. [SIDENOTE] GOAL Current income consistent with safety and liquidity STRATEGY Invests exclusively in money market instruments INCEPTION DATES Citizens Money Market Fund Standard shares 08/30/83 Institutional shares 02/01/96 Citizens Prime Money Market Fund 07/01/03 IMPORTANT NOTES Past performance does not guarantee future results. When you sell your fund shares, they may be worth more or less than what you paid for them. Investments in the Citizens Money Market Fund and Citizens Prime Money Market Fund are not insured or guaranteed by the FDIC or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. Fee waivers were instituted in the past for the Citizens Money Market Fund and during the period for the Citizens Prime Money Market Fund to maintain fund expense limits. Otherwise, returns would have been lower. 14 PORTFOLIO HOLDINGS DECEMBER 31, 2003 ($ X 1,000) UNAUDITED CITIZENS 300 FUND
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- COMMON STOCKS - 99.6% AIR FREIGHT - 1.8% FedEx Corp. 200 14 United Parcel Service, Class B 900 67 --------- 81 AIRLINES - 0.2% Southwest Airlines Co. 600 10 APPAREL MANUFACTURERS - 0.2% Coach, Inc. (a) 300 11 AUTO MANUFACTURING - 0.7% Ford Motor Co. 1,400 22 PACCAR, Inc. 100 9 --------- 31 BANKS - 4.2% AmSouth Bancorp 500 12 Bank of New York Co., Inc. 600 20 Bank One Corp. 900 42 BB&T Corp. 600 23 Comerica, Inc. 200 11 Fifth Third Bancorp 400 24 Marshall & Ilsley Corp. 300 11 National City Corp. 500 17 Suntrust Banks, Inc. 200 14 Synovus Financial Corp. 500 14 --------- 188 BIOTECHNOLOGY - 2.8% Allergan, Inc. 100 8 Amgen, Inc. (a) 1,000 61 Chiron Corp. (a) 200 11 Forest Laboratories, Inc. (a) 300 19 Genzyme Corp. (a) 200 10 Gilead Sciences, Inc. (a) 200 12 MedImmune, Inc. (a) 200 5 --------- 126 BROADCASTING - 1.0% Clear Channel Communications, Inc. 500 24 Interpublic Group of Companies, Inc. (a) 800 12 Univision Communications, Inc. (a) 200 8 --------- 44 CHEMICALS - 0.6% Air Products & Chemicals, Inc. 200 11 Praxair, Inc. 400 15 --------- 26 COMPUTERS - 12.6% BMC Software, Inc. (a) 200 4 Dell Computer Corp. (a) 2,000 68 First Data Corp. 600 25 Intel Corp. 5,200 167 Intuit, Inc. (a) 200 11 Microsoft Corp. 8,600 236 Network Appliance, Inc. (a) 200 4 SunGard Data Systems, Inc. (a) 500 14 Symantec Corp. (a) 400 14 Veritas Software Corp. (a) 300 11 --------- 554 CONSTRUCTION - 0.2% Masco Corp. 400 11 CONSUMER PRODUCTS - 0.5% Kimberly-Clark Corp. 400 24 ELECTRICAL EQUIPMENT - 0.9% American Power Conversion Corp. 100 2 Emerson Electric Co. 300 20 Sanmina Corp. (a) 600 8 W.W. Grainger, Inc. 200 9 --------- 39 ELECTRONICS - 7.7% Adobe Systems, Inc. 200 8 Analog Devices, Inc. 300 14 Applied Materials, Inc. (a) 1,300 29 Applied Micro Circuits Corp. (a) 200 1 Broadcom Corp., Class A (a) 300 10 Cisco Systems, Inc. (a) 5,500 133 Electronic Arts, Inc. (a) 200 10 Intersil Corp., Class A 100 2 JDS Uniphase Corp. (a) 800 3 Johnson Controls, Inc. 100 12 Juniper Networks, Inc. (a) 600 11 Linear Technology Corp. 300 13 Microchip Technology, Inc. 400 13 Novellus Systems, Inc. (a) 300 13 NVIDIA Corp. (a) 100 2 SPX Corp. (a) 200 12 Texas Instruments, Inc. 1,400 41 Xilinx, Inc. (a) 300 12 --------- 339 ENERGY & UTILITIES - 4.0% Allegheny Energy, Inc. (a) 100 1 Anadarko Petroleum Corp. 200 10 Apache Corp. 100 8 Baker Hughes, Inc. 300 10 BJ Services Co. (a) 200 7 Burlington Resources, Inc. 200 11 Calpine Corp. (a) 300 1 ConocoPhillips 500 34 Devon Energy Corp. 200 11
See Financial Notes 15
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- ENERGY & UTILITIES (CONT.) El Paso Corp. 300 2 EOG Resources, Inc. 200 9 KeySpan Corp. 200 7 Kinder Morgan, Inc. 200 13 NiSource, Inc. 300 7 Noble Corp. (a) 200 7 Pepco Holdings, Inc. 100 2 Smith International, Inc. (a) 100 4 The Williams Cos., Inc. 1,100 11 Transocean, Inc. (a) 200 5 Valero Energy Corp. 200 9 XTO Energy, Inc. 400 11 --------- 180 ENTERTAINMENT - 2.7% Comcast Corp., Class A (a) 1,700 56 Viacom, Inc. 1,400 62 --------- 118 FINANCIAL - DIVERSIFIED - 12.5% AMBAC Financial Group, Inc. 200 14 American Express Co. 1,000 48 Citigroup, Inc. 4,100 199 Fannie Mae 800 60 Freddie Mac 500 29 J.P. Morgan Chase & Co. 1,600 59 M & T Bank Corp. 100 10 MBNA Corp. 1,000 25 Mellon Financial Corp. 400 13 MetLife, Inc. 600 20 Moody's Corp. 200 12 Northern Trust Corp. 200 9 SLM Corp. 300 11 State Street Corp. 300 16 Washington Mutual, Inc. 700 28 --------- 553 FINANCIAL SERVICES - 0.9% Charles Schwab Corp. 1,100 13 Golden West Financial Corp. 100 10 Principal Financial Group 300 10 SouthTrust Corp. 200 7 --------- 40 FOODS - 6.0% Bunge Limited 100 3 Campbell Soup Co. 600 16 Coca-Cola Co. 1,900 97 General Mills, Inc. 300 14 H.J. Heinz Co. 300 11 Hershey Foods Corp. 200 15 Kellogg Co. 300 11 McCormick & Co., Inc. 100 3 PepsiCo, Inc. 1,400 65 Sara Lee Corp. 600 13 SUPERVALU, Inc. 100 3 Wm. Wrigley Jr. Co. 300 17 --------- 268 HEALTH CARE - 12.7% AmerisourceBergen Corp. 200 11 Baxter International, Inc. 400 12 Becton, Dickinson & Co. 400 16 Biomet, Inc. 200 7 Boston Scientific Corp. (a) 600 22 Cardinal Health, Inc. 300 18 Guidant Corp. 200 12 Health Management Associates Inc., Class A 100 2 Johnson & Johnson, Inc. 2,300 119 Medtronic, Inc. 1,000 49 Mylan Laboratories, Inc. 150 4 Pfizer, Inc. 6,200 220 Quest Diagnostics, Inc. (a) 100 7 St. Jude Medical, Inc. (a) 100 6 Stryker Corp. 200 17 UnitedHealth Group, Inc. 500 29 WellPoint Health Networks, Inc. (a) 100 10 --------- 561 HOME BUILDING - 0.6% Centex Corp. 100 11 D. R. Horton, Inc. 100 4 Lennar Corp. 100 10 --------- 25 HOTELS & LODGING - 0.3% Marriott International, Inc., Class A 200 9 Starwood Hotels & Resorts Worldwide 100 4 --------- 13 HOUSEHOLD PRODUCTS - 0.6% Clorox Co. 300 15 Newell Rubbermaid, Inc. 500 11 --------- 26 INSURANCE - 4.6% American International Group, Inc. 2,100 138 Anthem, Inc. (a) 100 8 Hartford Financial Services Group, Inc. 200 12 Marsh & McLennan Cos., Inc. 400 19 MBIA, Inc. 200 12 Progressive Corp. 200 17 --------- 206
See Financial Notes 16
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- MANUFACTURING - 4.0% 3M Co. 600 50 American Standard Cos., Inc. (a) 100 10 Cintas Corp. 100 5 Dana Corp. 100 2 Deere & Co. 200 13 Dover Corp. 100 4 Eaton Corp. 100 11 Ecolab, Inc. 200 5 Harley-Davidson, Inc. 200 10 Illinois Tool Works, Inc. 200 17 Ingersoll-Rand Co. 200 14 Mattel, Inc. 200 4 Nucor Corp. 200 11 Parker Hannifin Corp. 100 6 Sealed Air Corp. (a) 100 5 Smurfit-Stone Container Corp. (a) 600 11 Worthington Industries, Inc. 100 2 --------- 180 OFFICE EQUIPMENT & SUPPLIES - 0.4% Avery Dennison Corp. 200 11 Pitney Bowes, Inc. 200 8 --------- 19 PERSONAL CARE - 1.5% Avon Products, Inc. 200 13 Colgate-Palmolive Co. 400 20 Gillette Co. 800 30 The Estee Lauder Cos., Inc., Class A 100 4 --------- 67 PHARMACEUTICALS - 0.6% McKesson Corp. 400 13 Zimmer Holdings, Inc. (a) 200 14 --------- 27 PUBLISHING - 0.9% McGraw-Hill Cos., Inc. 200 14 New York Times Co. 200 10 Tribune Co. 300 15 --------- 39 RAILROADS - 0.1% Norfolk Southern Corp. 200 5 REAL ESTATE INVESTMENT TRUST - 0.2% Simon Property Group, Inc. 200 9 RESTAURANTS - 0.5% Starbucks Corp. (a) 400 14 YUM! Brands, Inc. (a) 300 10 --------- 24 RETAIL - 7.4% AutoZone, Inc. (a) 100 9 Bed Bath & Beyond, Inc. (a) 300 13 Best Buy & Co., Inc. 200 10 Costco Wholesale Corp. (a) 400 15 CVS Corp. 300 11 Dollar General Corp. 400 8 Hasbro, Inc. 100 2 Home Depot, Inc. 1,900 68 InterActiveCorp, Inc. (a) 800 27 Kohl's Corp. (a) 300 13 Kroger Co. (a) 600 11 Lowe's Cos., Inc. 600 33 Staples, Inc. (a) 400 11 Target Corp. 700 27 The Gap, Inc. 700 16 The TJX Cos., Inc. 500 11 Tiffany & Co. 300 14 Walgreen Co. 800 29 --------- 328 SERVICES - 2.3% Apollo Group, Inc., Class A (a) 200 14 ARAMARK Corp. 400 11 Cendant Corp. 900 19 Expeditors International of Washington, Inc. 200 8 Monster Worldwide, Inc. (a) 100 2 Omnicom Group, Inc. 200 17 Pall Corp. 100 3 Paychex, Inc. 300 11 Sysco Corp. 500 19 --------- 104 TECHNOLOGY - 0.1% Rockwell International Corp. 100 4 TELECOMMUNICATIONS - 3.3% AT&T Wireless Services, Inc. (a) 1,400 11 Nextel Communications, Inc. (a) 900 25 QUALCOMM, Inc. 600 32 Verizon Communications, Inc. 2,200 78 --------- 146 --------- TOTAL COMMON STOCKS 4,426 Cost: $4,121
17
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 0.3% Fifth Third Bank, 0.60%, 01/02/04 (Proceeds at maturity $14, collateralized by Federal Home Loan Mortgage Corporation security, 5.00%, 11/01/2017) Cost: $14 14 14 --------- TOTAL INVESTMENTS - 99.9% 4,440 Cost: $4,135 (b)
Percentages indicated are based on net assets of $4,446. (a) Non-income producing security. (b) Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation $ 323 Unrealized depreciation (18) --------- Net unrealized appreciation $ 305
CITIZENS CORE GROWTH FUND
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- COMMON STOCKS - 100.1% AIR FREIGHT - 2.1% FedEx Corp. 79,060 5,337 United Parcel Service, Class B 35,000 2,609 --------- 7,946 AIRLINES - 0.9% Jetblue Airways Corp. (a) 71,000 1,883 Southwest Airlines Co. 102,000 1,646 --------- 3,529 BIOTECHNOLOGY - 7.5% Amgen, Inc. (a) 211,550 13,074 Biogen Idec, Inc. (a) 104,000 3,825 Gilead Sciences, Inc. (a) 125,700 7,308 MedImmune, Inc. (a) 160,500 4,077 --------- 28,284 CAPITAL GOODS - 0.5% Black & Decker Corp. 42,000 2,071 CHEMICALS - 1.0% Air Products & Chemicals, Inc. 24,000 1,267 Praxair, Inc. 33,000 1,261 Sigma-Aldrich Corp. 22,000 1,258 --------- 3,786 COMPUTERS - 15.1% Dell Computer Corp. (a) 160,500 5,451 Factset Research Systems, Inc. 50,000 1,911 First Data Corp. 93,000 3,821 Intel Corp. 529,200 17,040 International Business Machines Corp. 26,000 2,410 Macromedia, Inc. (a) 105,000 1,873 Maxtor Corp. (a) 168,000 1,865 Microsoft Corp. 495,584 13,648 Oracle Corp. (a) 370,000 4,884 SunGard Data Systems, Inc. (a) 68,000 1,884 Synopsys, Inc. (a) 54,000 1,823 --------- 56,610 CONSTRUCTION - 0.7% Masco Corp. 99,000 2,714 EDUCATION - 0.6% Corinthian Colleges, Inc. (a) 43,000 2,389 ELECTRONICS - 10.5% Adobe Systems, Inc. 45,000 1,769 Amkor Technology, Inc. (a) 85,000 1,548 Analog Devices, Inc. 79,000 3,606 Applied Materials, Inc. (a) 150,000 3,368 Cisco Systems, Inc. (a) 530,900 12,895 Electronic Arts, Inc. (a) 68,000 3,249 International Rectifier Corp. (a) 36,000 1,779 Intersil Corp., Class A 107,000 2,659 Johnson Controls, Inc. 17,000 1,974 KLA-Tencor Corp. (a) 33,000 1,936 Maxim Integrated Products, Inc. 38,000 1,892 SPX Corp. (a) 49,000 2,882 --------- 39,557 ENERGY & UTILITIES - 1.1% Apache Corp. 12,000 973 ConocoPhillips 34,200 2,242 Devon Energy Corp. 18,000 1,031 Vulcan Power Co., Class A (a)(b) 40,000 - --------- 4,246 ENTERTAINMENT - 2.3% Comcast Corp., Class A (a) 70,000 2,301 Viacom, Inc. 143,424 6,365 --------- 8,666 FINANCIAL - DIVERSIFIED - 6.1% American Express Co. 70,945 3,422 Citigroup, Inc. 77,700 3,772 Fannie Mae 40,000 3,002 Legg Mason, Inc. 35,000 2,701 MBNA Corp. 115,000 2,858 Merrill Lynch & Company 32,000 1,877 SLM Corp. 46,000 1,733 Wachovia Corp. 82,000 3,820 --------- 23,185
See Financial Notes 18
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- FOODS - 4.3% Bunge Limited 62,000 2,041 Coca-Cola Co. 66,000 3,350 General Mills, Inc. 39,000 1,767 Kellogg Co. 50,000 1,904 PepsiCo, Inc. 110,500 5,151 Wm.Wrigley Jr. Co. 34,000 1,911 --------- 16,124 HEALTH CARE - 16.9% Barr Laboratories, Inc. (a) 25,000 1,924 Boston Scientific Corp. (a) 100,000 3,676 Guidant Corp. 37,000 2,227 Johnson & Johnson, Inc. 147,248 7,607 Medtronic, Inc. 105,338 5,120 Merck & Co., Inc. 108,000 4,990 Mylan Laboratories, Inc. 221,500 5,595 Pfizer, Inc. 431,900 15,260 St. Jude Medical, Inc. (a) 47,000 2,883 UnitedHealth Group, Inc. 141,000 8,203 WellPoint Health Networks, Inc. (a) 62,000 6,013 --------- 63,498 INSURANCE - 1.0% American International Group, Inc. 56,934 3,774 INVESTMENT BANKING & BROKERAGE - 1.1% E*TRADE Group, Inc. (a) 145,700 1,843 The Goldman Sachs Group, Inc. 25,000 2,468 --------- 4,311 MANUFACTURING - 5.9% 3Com Corp. (a) 231,000 1,887 3M Co. 107,600 9,150 Harley-Davidson, Inc. 40,000 1,901 Illinois Tool Works, Inc. 21,500 1,804 Ingersoll-Rand Co. 28,000 1,901 Procter & Gamble Company 57,000 5,693 --------- 22,336 OFFICE EQUIPMENT & SUPPLIES - 0.5% Avid Technology, Inc. (a) 39,000 1,872 PERSONAL CARE - 2.9% Avon Products, Inc. 57,000 3,847 Colgate-Palmolive Co. 56,200 2,813 Gillette Co. 114,000 4,187 --------- 10,847 RESTAURANTS - 0.5% McDonald's Corp. 82,600 2,051 RETAIL - 11.2% Bed Bath & Beyond, Inc. (a) 44,000 1,907 Best Buy & Co., Inc. 36,000 1,881 Costco Wholesale Corp. (a) 103,000 3,830 CVS Corp. 107,000 3,864 Dollar General Corp. 92,000 1,931 Dollar Tree Stores, Inc. (a) 62,000 1,864 eBay, Inc. (a) 40,800 2,635 Family Dollar Stores, Inc. 53,000 1,902 Home Depot, Inc. 187,000 6,636 Michaels Stores, Inc. 43,000 1,901 Nordstrom, Inc. 34,000 1,166 Target Corp. 95,000 3,648 The Gap, Inc. 68,200 1,583 Walgreen Co. 93,200 3,391 Whole Foods Market, Inc. (a) 28,000 1,880 Williams Sonoma, Inc. (a) 56,000 1,947 --------- 41,966 SERVICES - 4.9% Cendant Corp. 273,000 6,080 Dun & Bradstreet Corp. (a) 56,000 2,840 Fair Isaac & Co., Inc. 38,000 1,868 Fiserv, Inc. (a) 47,000 1,857 Manpower, Inc. 40,300 1,897 Omnicom Group, Inc. 22,000 1,921 Pall Corp. 72,000 1,932 --------- 18,395 TELECOMMUNICATIONS - 2.5% Avaya, Inc. (a) 148,000 1,915 Nextel Communications, Inc. (a) 113,000 3,171 QUALCOMM, Inc. 80,000 4,314 --------- 9,400 --------- TOTAL COMMON STOCKS 377,557 Cost: $317,594 SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 0.9% Fifth Third Bank, 0.60%, 01/02/04 (Proceeds at maturity $3,294, collateralized by Federal Home Loan Mortgage Corporation security, 6.50%, 04/01/19) Cost: $3,294 3,294 3,294 --------- TOTAL INVESTMENTS - 101.0% 380,851 Cost: $320,888 (c)
Percentages indicated are based on net assets of $377,177. (a) Non-income producing security. (b) Restricted security constituting 0.00% of net assets which may not be publicly sold without registration under the Securities Act of 1933. This security is valued at its fair value as determined in good faith under consistently applied procedures under the general 19 supervision of the Trust's Board of Trustees. Additional information on the security is as follows: Acquisition date: March 3, 1995 Cost: $300 Value: $0 (c) Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation $ 61,214 Unrealized depreciation (1,251) --------- Net unrealized appreciation $ 59,963
CITIZENS EMERGING GROWTH FUND
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- COMMON STOCKS - 98.9% BIOTECHNOLOGY - 7.2% Allergan, Inc. 22,200 1,705 Gilead Sciences, Inc. (a) 61,100 3,552 Intermune, Inc. (a) 50,000 1,158 MedImmune, Inc. (a) 99,600 2,530 Millenium Pharmaceuticals, Inc. (a) 94,465 1,764 Neurocrine Biosciences, Inc. (a) 55,686 3,037 --------- 13,746 COMPUTERS - 10.3% Citrix Systems, Inc. (a) 74,300 1,576 Cognos, Inc. ADR (a) 64,600 1,978 Corning, Inc. (a) 182,000 1,898 Maxtor Corp. (a) 138,200 1,534 Mercury Interactive Corp. (a) 43,612 2,121 Pixar, Inc. (a) 26,660 1,847 Seagate Technology 54,100 1,022 SunGard Data Systems, Inc. (a) 46,700 1,294 Symantec Corp. (a) 72,400 2,510 Symbol Technologies, Inc. 112,581 1,901 Veritas Software Corp. (a) 55,100 2,048 --------- 19,729 ELECTRICAL EQUIPMENT - 0.7% Fairchild Semiconductor Corp. (a) 56,000 1,398 ELECTRONICS - 17.1% Adobe Systems, Inc. 91,300 3,589 Amkor Technology, Inc. (a) 122,300 2,227 Conexant Systems, Inc. (a) 419,900 2,087 Electronic Arts, Inc. (a) 38,200 1,825 Flextronics International (a) 140,900 2,091 Integrated Circuit Systems, Inc. (a) 55,000 1,567 International Rectifier Corp. (a) 26,300 1,299 Intersil Corp., Class A 53,800 1,337 Jabil Circuit, Inc. (a) 81,000 2,292 Johnson Controls, Inc. 18,700 2,171 Juniper Networks, Inc. (a) 116,100 2,169 KLA-Tencor Corp. (a) 33,500 1,965 Linear Technology Corp. 47,600 2,003 Marvel Technology Group, Ltd. (a) 48,000 1,821 Maxim Integrated Products, Inc. 37,500 1,868 Qlogic Corp. (a) 49,000 2,528 --------- 32,839 ENERGY & UTILITIES - 5.0% Devon Energy Corp. 38,888 2,226 KeySpan Corp. 55,000 2,024 Newfield Exploration Co. (a) 48,600 2,165 Noble Energy, Inc. 39,928 1,774 ONEOK, Inc. 67,800 1,497 --------- 9,686 FINANCIAL - DIVERSIFIED - 2.0% Jefferies Group, Inc. 116,600 3,850 FOODS - 3.5% Bunge Limited 53,000 1,745 H.J. Heinz Co. 61,300 2,233 Kellogg Co. 72,100 2,745 --------- 6,723 HEALTH CARE - 11.5% Barr Laboratories, Inc. (a) 13,800 1,062 Cytyc Corp. (a) 61,400 845 Health Management Associates, Inc., Class A 166,200 3,989 IDEXX Laboratories, Inc. (a) 13,300 616 Laboratory Corporation of America Holdings (a) 65,200 2,409 Mylan Laboratories, Inc. 40,500 1,023 Quest Diagnostics, Inc. (a) 29,900 2,186 Sierra Health Services, Inc. (a) 39,000 1,071 St. Jude Medical, Inc. (a) 55,900 3,429 Universal Health Services, Inc. 41,900 2,251 WellPoint Health Networks, Inc. (a) 33,200 3,220 --------- 22,101 HOTELS & MOTELS - 2.3% Choice Hotels International, Inc. (a) 55,100 1,942 Fairmont Hotels & Resorts, Inc. 87,500 2,375 --------- 4,317 INVESTMENT BANKING & BROKERAGE - 5.1% Affiliated Managers Group, Inc. (a) 44,180 3,075 Regions Financial Corp. 49,200 1,830 Southwest BanCorp of Texas 48,800 1,896 T-Rowe Price Group, Inc. 36,400 1,726 Wilmington Trust Corp. 34,700 1,249 --------- 9,776
See Financial Notes 20
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- MANUFACTURING - 3.8% Donaldson Co., Inc.(b) 15,000 887 Ecolab, Inc. 78,000 2,136 Genuine Parts Co. 37,500 1,245 Leggett & Platt, Inc. 74,500 1,611 Mattel, Inc. 72,100 1,389 --------- 7,268 MULTIMEDIA - 3.4% Cox Radio, Inc., Class A(a) 117,813 2,972 Emmis Communications Corp., Class A(a) 129,600 3,506 --------- 6,478 PHARMACEUTICALS - 2.3% Angiotech Pharmaceuticals, Inc.(a) 10,486 482 McKesson Corp. 56,900 1,830 Medicis Pharmaceutical Corp., Class A 30,400 2,168 --------- 4,480 RAILROADS - 1.5% Norfolk Southern Corp. 121,400 2,871 RESTAURANTS - 3.0% Brinker International, Inc.(a) 54,700 1,814 Starbucks Corp.(a) 49,000 1,620 YUM! Brands, Inc.(a) 64,800 2,229 --------- 5,663 RETAIL - 10.4% Advance Auto Parts(a) 26,200 2,133 Big Lots, Inc.(a) 55,300 786 Borders Group, Inc.(a) 29,000 636 Dollar General Corp. 68,200 1,432 Fastenal Co. 83,200 4,155 Hasbro, Inc. 64,900 1,381 RadioShack Corp. 65,400 2,006 Staples, Inc.(a) 88,000 2,402 The TJX Cos., Inc. 175,200 3,863 Tiffany & Co. 24,800 1,121 --------- 19,915 SERVICES - 9.3% Apollo Group, Inc., Class A(a) 29,500 2,006 ARAMARK Corp. 90,900 2,492 Corporate Executive Board Co.(a) 61,700 2,880 Dun & Bradstreet Corp.(a) 30,500 1,547 Fiserv, Inc.(a) 66,800 2,639 Getty Images, Inc.(a) 28,800 1,444 IMS Health, Inc. 71,900 1,787 Kroll, Inc.(a) 47,500 1,235 Paychex, Inc. 50,703 1,886 --------- 17,916 TELECOMMUNICATIONS - 0.5% UTStarcom, Inc.(a) 26,600 986 --------- TOTAL COMMON STOCKS 189,742 Cost: $162,523
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 1.6% Fifth Third Bank, 0.60%, 01/02/04 (Proceeds at maturity $3,064, collateralized by Federal National Mortgage Association security, 7.00%, 10/01/27) Cost: $3,064 3,064 3,064 --------- TOTAL INVESTMENTS - 100.5% 192,806 Cost: $165,587
Percentages indicated are based on net assets of $191,838. (a) Non-income producing security. (b) Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation $ 29,254 Unrealized depreciation (2,035) --------- Net unrealized appreciation $ 27,219
ADR - American Depositary Receipt CITIZENS SMALL CAP CORE GROWTH FUND
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- COMMON STOCKS - 99.4% BANKS - 4.0% Cascade Financial Corp. 7,750 150 Franklin Bank Corp.(a) 16,458 313 Prosperity Bancshares, Inc. 5,464 123 Seacoast Financial Services Corp. 4,200 115 UCBH Holdings, Inc. 7,960 310 --------- 1,011 BIOTECHNOLOGY - 5.2% Aphton Corp.(a) 40,300 242 Intermune, Inc.(a) 22,650 525 Neurocrine Biosciences, Inc.(a) 10,394 566 --------- 1,333 COMMUNICATIONS EQUIPMENT - 2.2% Foundry Networks, Inc.(a) 13,000 356 Standard Microsystems Corp.(a) 8,350 211 --------- 567 COMPUTERS - 18.6% Aspen Technology, Inc.(a) 44,200 453
21
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- COMPUTERS (CONT.) Brooks Automation, Inc.(a) 12,050 291 Captiva Software Corp.(a) 40,900 518 Computer Horizons Corp.(a) 126,700 498 Digital Insight Corp.(a) 16,900 421 Digital River, Inc.(a) 15,500 343 Embarcadero Technologies, Inc.(a) 19,730 315 F5 Networks, Inc.(a) 15,150 380 FileNET Corp.(a) 9,300 252 Hyperion Solutions Corp.(a) 7,500 226 Magma Design Automation, Inc.(a) 5,820 136 Maxtor Corp.(a) 12,030 134 Quest Software, Inc.(a) 26,300 373 Red Hat, Inc.(a) 7,100 133 Synaptics, Inc.(a) 18,350 275 --------- 4,748 EDUCATIONAL SERVICES - 1.1% Bright Horizons Family Solutions, Inc.(a) 2,950 124 Strayer Education, Inc. 1,350 147 --------- 271 ELECTRICAL EQUIPMENT - 3.0% Benchmark Electronics, Inc.(a) 12,550 437 Trident Microsystems, Inc.(a) 18,900 329 --------- 766 ELECTRONICS - 6.6% Asyst Technologies, Inc.(a) 16,200 281 Cabot Microelectronics Corp.(a) 3,600 176 Conexant Systems, Inc.(a) 50,600 251 OmniVision Technologies, Inc.(a) 4,000 221 Photon Dynamics, Inc.(a) 11,200 452 Vitesse Semiconductor Corp.(a) 51,700 303 --------- 1,684 ENERGY & UTILITIES - 3.3% Cambior, Inc.(a) 30,000 93 Hecla Mining Co.(a) 7,400 61 Newfield Exploration Co.(a) 6,540 292 Precision Drilling Corp.(a) 6,290 275 Stone Energy Corp.(a) 3,000 127 --------- 848 FINANCIAL - DIVERSIFIED - 3.8% Financial Federal Corp.(a) 18,640 569 Jefferies Group, Inc. 11,930 394 --------- 963 HEALTH CARE - 9.4% Accredo Health, Inc.(a) 4,200 133 American Medical Systems Holdings, Inc.(a) 12,050 263 Amerigroup Corp.(a) 4,100 175 Cytyc Corp.(a) 18,100 249 LifePoint Hospitals, Inc.(a) 8,100 239 Merit Medical Systems, Inc.(a) 6,128 136 Sierra Health Services, Inc.(a) 19,900 546 Therasense, Inc.(a) 13,070 265 Thoratec Corp.(a) 29,180 380 --------- 2,386 HOTELS & MOTELS - 1.7% Choice Hotels International, Inc.(a) 12,000 423 INTERNET SOFTWARE & SERVICES - 0.6% Ask Jeeves, Inc.(a) 8,900 161 INVESTMENT BANKING & BROKERAGE - 4.4% Affiliated Managers Group, Inc.(a) 7,257 505 Piper Jaffray Companies, Inc.(a) 3,100 129 Southwest BanCorp of Texas 12,650 491 --------- 1,125 MANUFACTURING - 9.4% Applied Films Corp.(a) 16,740 552 CLARCOR, Inc. 1,650 73 Georgia Gulf Corp. 2,100 61 Kennametal, Inc. 12,200 485 Oshkosh Truck Corp. 9,800 499 Roper Industries, Inc. 8,700 429 Select Comfort Corp.(a) 2,500 62 The Manitowoc Co., Inc. 8,100 253 --------- 2,414 MULTIMEDIA - 3.2% Emmis Communications Corp., Class A(a) 18,850 510 Spanish Broadcasting Systems, Inc.(a) 29,400 309 --------- 819 PHARMACEUTICALS - 6.0% Advancis Pharmaceutical Corp.(a) 30,200 227 Angiotech Pharmaceuticals, Inc.(a) 9,941 456 Genta, Inc.(a) 18,300 191 Ilex Oncology, Inc.(a) 10,400 221 Medicis Pharmaceutical Corp., Class A 3,600 257 Nabi Biopharmaceuticals(a) 13,500 172 --------- 1,524 RESTAURANTS - 0.4% CEC Entertainment, Inc.(a) 2,350 111 RETAIL - 4.0% Big 5 Sporting Goods Corp.(a) 23,800 499 Fastenal Co. 2,610 130 PETCO Animal Supplies, Inc.(a) 4,000 122 Tommy Hilfiger Corp.(a) 17,900 265 --------- 1,016 SERVICES - 8.0% Corporate Executive Board Co.(a) 6,030 281 Getty Images, Inc.(a) 7,500 376 Heidrick & Struggles International, Inc.(a) 3,600 78
See Financial Notes 22
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- Kroll, Inc.(a) 10,600 276 Labor Ready, Inc.(a) 42,460 557 Roto Rooter, Inc. 10,000 461 --------- 2,029 TELECOMMUNICATIONS - 1.4% Tekelec(a) 22,390 348 TRANSPORTATION - 2.0% Landstar System, Inc.(a) 13,100 498 WASTE MANAGEMENT - 1.1% Waste Connections, Inc.(a) 7,680 290 --------- TOTAL COMMON STOCKS 25,335 Cost: $22,845 SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 0.9% Fifth Third Bank, Inc., 0.60%, 01/02/04 (Proceeds at maturity $239, collateralized by Federal Home Loan Mortgage Corporation security, 6.50%, 05/01/31) Cost: $239 239 239 --------- TOTAL INVESTMENTS - 100.3% 25,574 Cost: $23,084(b)
Percentages indicated are based on net assets of $25,499. (a) Non-income producing security. (b) Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation $ 3,015 Unrealized depreciation (525) --------- Net unrealized appreciation $ 2,490
CITIZENS VALUE FUND
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- COMMON STOCKS - 99.6% AIR FREIGHT - 1.6% FedEx Corp. 4,860 328 APPAREL MANUFACTURERS - 0.5% V.F. Corp. 2,400 104 AUTO MANUFACTURING - 0.5% PACCAR, Inc. 1,200 102 BANKS - 2.7% Bank of America Corp. 6,200 498 KeyCorp 1,800 53 --------- 551 BIOTECHNOLOGY - 1.0% Amgen, Inc.(a) 3,300 204 CHEMICALS - 2.1% Engelhard Corp. 3,800 114 Praxair, Inc. 5,840 223 Sigma-Aldrich Corp. 1,800 103 --------- 440 COMMUNICATIONS EQUIPMENT - 0.5% Scientific-Atlanta, Inc. 4,000 109 COMPUTERS - 10.8% Affiliated Computer Services, Inc.(a) 2,600 142 Hewlett-Packard Co. 26,030 598 Intel Corp. 16,680 537 International Business Machines Corp. 4,975 461 Microsoft Corp. 17,100 471 --------- 2,209 CONSTRUCTION - 2.3% Lafarge North America, Inc. 3,200 130 Masco Corp. 12,400 340 --------- 470 CONSUMER PRODUCTS - 2.2% Kimberly-Clark Corp. 7,720 456 ELECTRICAL EQUIPMENT - 1.4% Emerson Electric Co. 4,600 298 ELECTRONICS - 4.5% Cisco Systems, Inc.(a) 10,500 254 International Rectifier Corp.(a) 2,700 133 Johnson Controls, Inc. 1,400 163 National Semiconductor Corp.(a) 3,900 154 SPX Corp.(a) 3,720 219 --------- 923 ENERGY & UTILITIES - 5.9% Anadarko Petroleum Corp. 3,600 184 Apache Corp. 2,500 203 ConocoPhillips 7,790 510 KeySpan Corp. 2,700 99 NiSource, Inc. 4,700 103 Pepco Holdings, Inc. 5,300 104 --------- 1,203 ENTERTAINMENT - 2.0% Viacom, Inc. 9,250 411 FINANCIAL - DIVERSIFIED - 14.9% Capital One Financial Corp. 3,040 186 Citigroup, Inc. 10,100 489 First Tennessee National Corp. 2,200 97 Freddie Mac 7,550 440
23
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- FINANCIAL - DIVERSIFIED (CONT.) J.P. Morgan Chase & Co. 8,400 309 Lehman Brothers Holdings, Inc. 3,430 265 MBNA Corp. 17,000 422 MetLife, Inc. 7,000 236 The Bear Stearns Cos., Inc. 2,000 160 Wachovia Corp. 9,900 461 --------- 3,065 FOODS - 5.1% Bunge Limited 5,700 188 General Mills, Inc. 2,100 95 PepsiCo, Inc. 8,200 382 Sara Lee Corp. 17,080 371 --------- 1,036 HEALTH CARE - 7.9% Baxter International, Inc. 15,040 460 Beckman Coulter, Inc. 2,300 117 Becton, Dickinson & Co. 4,800 197 C.R. Bard, Inc. 1,450 118 Health Net, Inc.(a) 4,000 131 Laboratory Corporation of America Holdings(a) 4,200 155 Merck & Co., Inc. 9,750 450 --------- 1,628 INSURANCE - 5.1% Anthem, Inc.(a) 3,400 255 Fidelity National Financial Corp. 2,650 103 Hartford Financial Services Group, Inc. 4,300 254 St. Paul Companies, Inc. 4,500 178 The Allstate Corp. 6,150 265 --------- 1,055 MANUFACTURING - 4.5% Bausch & Lomb, Inc. 2,000 104 Dana Corp. 5,800 106 Deere & Co. 3,600 234 Eaton Corp. 1,110 120 Ingersoll-Rand Co. 3,700 252 Pactiv Corp.(a) 4,200 100 --------- 916 PHARMACEUTICALS - 3.0% Bristol-Myers Squibb Co. 14,500 415 McKesson Corp. 6,200 199 --------- 614 PUBLISHING - 1.5% Gannett Co., Inc. 3,400 303 RESTAURANTS - 2.5% Brinker International, Inc.(a) 3,100 103 McDonald's Corp. 16,650 413 --------- 516 RETAIL - 6.7% Costco Wholesale Corp.(a) 5,500 204 CVS Corp. 11,300 408 Federated Department Stores, Inc. 2,200 104 Kroger Co.(a) 14,080 261 Office Depot, Inc.(a) 5,800 97 Target Corp. 8,000 307 --------- 1,381 SERVICES - 4.4% Cendant Corp. 12,380 277 Dun & Bradstreet Corp.(a) 2,000 101 Omnicom Group, Inc. 2,300 201 Pall Corp. 3,700 99 Unisys Corp.(a) 14,900 221 --------- 899 TECHNOLOGY - 0.5% Storage Technology Corp.(a) 3,600 93 TELECOMMUNICATIONS - 5.5% Amdocs, Ltd.(a) 5,200 117 AT&T Corp. 7,400 150 BellSouth Corp. 8,460 239 QUALCOMM, Inc. 5,860 317 Verizon Communications, Inc. 8,500 298 --------- 1,121 --------- TOTAL COMMON STOCKS 20,435 Cost: $17,981 SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 0.6% Fifth Third Bank, 0.60%, 01/02/04 (Proceeds at maturity $124, collateralized by Federal Home Loan Mortgage Corporation security, 7.50%, 11/01/29) Cost: $124 124 124 --------- TOTAL INVESTMENTS - 100.2% 20,559 Cost: $18,105(b)
Percentages indicated are based on net assets of $20,513. (a) Non-income producing security. (b) Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation $ 2,539 Unrealized depreciation (85) --------- Net unrealized appreciation $ 2,454
See Financial Notes 24 CITIZENS GLOBAL EQUITY FUND
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- COMMON STOCKS- 98.9% AUTOMOBILE MANUFACTURING - 2.8% Honda Motor Co., Ltd. 38,200 1,697 Toyota Motor Corp. 2,800 95 Volkswagen AG 29,500 1,650 --------- 3,442 BANKS - 2.3% Bank of New York Co., Inc. 36,300 1,202 Barclays plc 8,511 76 Royal Bank of Scotland Group plc 53,162 1,567 --------- 2,845 BIOTECHNOLOGY - 4.9% Amgen, Inc.(a) 19,500 1,205 Applied Biosystems Group 57,800 1,197 Invitrogen Corp.(a) 15,900 1,113 Roche Holding AG 24,151 2,436 --------- 5,951 BROADCASTING - 6.1% British Sky Broadcasting Group plc(a) 198,283 2,495 Clear Channel Communications, Inc. 39,400 1,845 Cox Communications, Inc., Class A(a) 50,900 1,754 Univision Communications, Inc.(a) 33,000 1,310 --------- 7,404 CHEMICALS - 2.2% Air Products & Chemical, Inc. 26,000 1,373 Shin-Etsu Chemical Co. 33,200 1,357 --------- 2,730 COMPUTERS - 9.5% EMC Corp.(a) 94,000 1,214 Hewlett Packard Company 54,000 1,240 Intel Corp. 55,000 1,771 International Business Machines Corp. 19,000 1,761 Microsoft Corp. 100,000 2,755 Oracle Corp.(a) 76,000 1,003 SAP AG 11,000 1,856 --------- 11,600 ELECTRICAL EQUIPMENT - 7.0% Analog Devices, Inc. 29,900 1,365 ASML Holding NV(a) 4,914 97 Emerson Electric Co. 33,100 2,143 Flextronics International Ltd.(a) 103,770 1,540 Taiwan Semiconductor Manufacturing Co. Ltd. ADR(a) 117,034 1,198 Teradyne, Inc.(a) 85,000 2,164 --------- 8,507 ELECTRONICS - 1.6% Cisco Systems, Inc.(a) 80,400 1,953 ENERGY & UTILITIES - 4.0% BP Amoco plc 279,007 2,263 EOG Resources, Inc. 25,000 1,154 Noble Corp.(a) 36,000 1,288 Scottish Power plc 17,272 115 --------- 4,820 FINANCIAL - DIVERSIFIED - 11.8% American Express Co. 35,000 1,688 Citigroup, Inc. 83,400 4,049 HBOS plc 69,628 902 HSBC Holdings plc 157,306 2,472 UBS AG 49,463 3,388 Wells Fargo & Co. 30,300 1,784 --------- 14,283 FOOD & BEVERAGES - 3.2% Compass Group plc 177,388 1,207 Nestle SA 5,678 1,418 The Coca-Cola Co. 25,000 1,269 --------- 3,894 HEALTH CARE - 8.4% Cardinal Health, Inc. 14,000 856 Eli Lilly & Co. 10,000 703 GlaxoSmithKline ADR 2,546 119 GlaxoSmithKline plc 104,405 2,393 Medtronic, Inc. 41,500 2,017 Novartis AG 2,886 131 Pfizer, Inc. 67,400 2,381 Sanofi-Synthelabo SA 20,733 1,561 --------- 10,161 HOTELS & MOTELS - 1.0% Hilton Hotels Corp. 69,000 1,182 INSURANCE - 6.8% American International Group, Inc. 29,000 1,922 AXA 75,128 1,608 AXA ADR 4,123 89 ING Groep NV 91,569 2,136 Swiss Re 441 30 Zurich Financial Services AG 17,455 2,511 --------- 8,296 INVESTMENT BANKING & BROKERAGE - 1.8% The Goldman Sachs Group, Inc. 22,500 2,221 MANUFACTURING - 6.2% Assa Abloy AB, Class B 69,600 827 CRH plc 2,331 48 CRH plc 81,167 1,667 Ingersoll-Rand Co., Class A 36,300 2,464 Komatsu, Ltd. 400,000 2,538 --------- 7,544
25
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- OFFICE EQUIPMENT & SUPPLIES - 1.5% Canon, Inc. 37,000 1,723 Canon, Inc. ADR 1,656 79 --------- 1,802 PERSONAL CARE - 2.9% Gillette Co. 48,000 1,763 L'Oreal SA 20,951 1,718 --------- 3,481 PHARMACEUTICALS - 1.0% Gilead Sciences, Inc.(a) 21,500 1,250 RETAIL - 3.4% Carrefour SA 336 18 Li & Fung, Ltd. 742,000 1,271 Target Corp. 36,000 1,383 Tesco plc 11,951 55 The TJX Cos., Inc. 61,100 1,347 --------- 4,074 SERVICES - 2.3% Omnicom Group, Inc. 20,000 1,746 Sysco Corp. 28,200 1,050 --------- 2,796 TELECOMMUNICATIONS - 8.2% Nippon Telegraph & Telephone Corp. 6 29 Nokia Oyj 151,450 2,619 NTT DoCoMo, Inc. 864 1,959 Telefonica SA 101,564 1,491 Telefonica SA ADR 1,081 48 Vodafone Group plc 1,497,183 3,712 Vodafone Group plc ADR 6,305 158 --------- 10,016 --------- TOTAL COMMON STOCKS 120,252 Cost: $106,596 SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 1.1% Fifth Third Bank, 0.60%, 01/02/04 (Proceeds at maturity $1,336, collateralized by Federal National Mortgage Association security, 5.00%, 11/01/17) Cost: $1,336 1,336 1,336 --------- TOTAL INVESTMENTS - 100.0% 121,588 Cost: $107,932(b)
Percentages indicated are based on net assets of $121,576. (a) Non-income producing security. (b) Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation $ 15,489 Unrealized depreciation (1,833) --------- Net unrealized appreciation $ 13,656
ADR - American Depositary Receipt At December 31, 2003, the fund's open forward currency contracts were as follows:
CONTRACT CONTRACT CURRENT AMOUNT VALUE VALUE UNREALIZED DELIVERY (LOCAL (U.S. (U.S. APPRECIATION/ DATE CURRENCY) DOLLAR) DOLLAR) DEPRECIATION ------------------------------------------------------------------------------- LONG CONTRACTS Euro 01/02/04 EURO 63,667 $ 78,878 $ 80,307 $ 1,429 SHORT CONTRACTS Euro 01/02/04 EURO 63,667 $ 78,878 $ 80,307 $ (1,429)
The fund's portfolio holdings as of December 31, 2003, were distributed among the following countries:
PERCENTAGE OF NET ASSETS ------------------------------ SHORT TERM EQUITY & OTHER TOTAL ------------------------------ Bermuda 2.0% 2.0% Finland 2.2% 2.2% France 4.1% 4.1% Germany 2.9% 2.9% Hong Kong 1.0% 1.0% Ireland 1.4% 1.4% Japan 7.8% 7.8% Netherlands 1.8% 1.8% Singapore 1.3% 1.3% Spain 1.3% 1.3% Sweden 0.7% 0.7% Switzerland 8.2% 8.2% Taiwan 1.0% 1.0% United Kingdom 14.4% 14.4% United States 48.8% 1.1% 49.9% ------------------------------ 98.9% 1.1% 100.0%
CITIZENS BALANCED FUND
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- COMMON STOCKS - 71.0% AIR FREIGHT - 1.4% FedEx Corp. 100 7 United Parcel Service, Class B 200 15 --------- 22
26
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- AIRLINES - 0.4% Southwest Airlines Co. 400 6 AUTO MANUFACTURING - 0.7% Ford Motor Co. 700 11 BANKS - 3.6% Bank of New York Co., Inc. 300 10 Bank One Corp. 200 9 BB&T Corp. 200 8 Fifth Third Bancorp 200 12 National City Corp. 300 10 Suntrust Banks, Inc. 100 7 --------- 56 BIOTECHNOLOGY - 2.6% Amgen, Inc.(a) 300 19 Applera Corp.- Applied Biosystems Group 100 2 Forest Laboratories, Inc.(a) 200 12 Gilead Sciences, Inc.(a) 131 8 --------- 41 BROADCASTING - 0.8% Clear Channel Communications, Inc. 184 9 Univision Communications, Inc.(a) 100 4 --------- 13 CHEMICALS - 0.8% Air Products & Chemicals, Inc. 100 5 Praxair, Inc. 200 8 --------- 13 COMPUTERS - 9.1% Dell, Inc.(a) 484 16 First Data Corp. 300 12 Intel Corp. 1,253 41 Microsoft Corp. 2,141 60 Symantec Corp.(a) 148 5 Veritas Software Corp.(a) 200 7 --------- 141 CONSTRUCTION - 0.5% Masco Corp. 300 8 CONSUMER PRODUCTS - 0.8% Kimberly-Clark Corp. 200 12 ELECTRICAL EQUIPMENT - 0.8% Emerson Electric Co. 200 13 ELECTRONICS - 4.4% Analog Devices, Inc. 139 6 Applied Materials, Inc.(a) 470 11 Cisco Systems, Inc.(a) 1,350 32 Qlogic Corp.(a) 50 3 Texas Instruments, Inc. 300 9 Xilinx, Inc.(a) 200 8 --------- 69 ENERGY & UTILITIES - 2.9% Anadarko Petroleum Corp. 100 5 Apache Corp. 70 6 Baker Hughes, Inc. 163 5 ConocoPhillips 151 10 Devon Energy Corp. 100 6 KeySpan Corp. 200 7 Kinder Morgan, Inc. 100 6 --------- 45 ENTERTAINMENT - 1.8% Comcast Corp., Class A(a) 400 13 Viacom, Inc. 329 15 --------- 28 FINANCIAL - DIVERSIFIED - 9.4% American Express Co. 275 13 Citigroup, Inc. 1,054 51 Fannie Mae 200 15 Freddie Mac 200 12 J.P. Morgan Chase & Co. 400 15 MBNA Corp. 400 10 MetLife, Inc. 100 3 SLM Corp. 100 4 State Street Corp. 200 10 Washington Mutual, Inc. 300 12 --------- 145 FOODS - 4.1% Coca-Cola Co. 500 25 General Mills, Inc. 200 9 Hershey Foods Corp. 100 8 PepsiCo, Inc. 300 14 Sara Lee Corp. 300 7 --------- 63 HEALTH CARE - 9.2% Baxter International, Inc. 300 9 Boston Scientific Corp.(a) 300 11 Cardinal Health, Inc. 200 12 Johnson & Johnson, Inc. 600 31 Medtronic, Inc. 200 10 Pfizer, Inc. 1,511 53 St. Jude Medical, Inc.(a) 100 6 UnitedHealth Group, Inc. 174 10 --------- 142 INSURANCE - 3.3% American International Group, Inc. 500 33 Marsh & McLennan Cos., Inc. 200 10 Progressive Corp. 100 8 --------- 51
27
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- MANUFACTURING - 1.5% 3M Co. 124 10 Deere & Co. 100 7 Illinois Tool Works, Inc. 74 6 --------- 23 PERSONAL CARE - 1.2% Colgate-Palmolive Co. 129 6 Gillette Co. 317 12 --------- 18 PUBLISHING - 0.6% Tribune Co. 200 10 RETAIL - 5.9% Best Buy & Co., Inc. 200 10 Home Depot, Inc. 500 19 InterActiveCorp, Inc.(a) 300 10 Kohl's Corp.(a) 138 6 Lowe's Cos., Inc. 200 11 RadioShack Corp. 200 6 Target Corp. 300 12 The Gap, Inc. 400 9 Walgreen Co. 233 8 --------- 91 SERVICES - 2.6% Apollo Group, Inc., Class A(a) 100 7 Cendant Corp. 300 7 Omnicom Group, Inc. 100 9 Paychex, Inc. 200 7 Sysco Corp. 300 11 --------- 41 TELECOMMUNICATIONS - 2.6% Nextel Communications, Inc.(a) 380 11 QUALCOMM, Inc. 200 11 Verizon Communications, Inc. 551 19 --------- 41 --------- TOTAL COMMON STOCKS 1,103 Cost: $1,027 SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($) - -------------------------------------------------------------------------------- CORPORATE BONDS - 9.6% BANKS - 0.4% Sovereign Bancorp, Inc., 10.50%, 11/15/06 5 6 BROADCASTING - 2.2% Clear Channel Communications, Inc., 4.40%, 05/15/11 10 10 Comcast Corp., 5.30%, 01/15/14 10 10 Cox Communications, Inc., 4.63%, 06/01/13 10 10 Liberty Media Corp., 5.70%, 05/15/13 5 5 --------- 35 COMMERCIAL SERVICES - 0.3% Cendant Corp., 6.25%, 01/15/08 5 5 ELECTRICAL EQUIPMENT - 0.4% Fairchild Semiconductor, 10.50%, 02/01/09 5 6 ENERGY & UTILITIES - 1.3% Devon Energy Corp., 2.75%, 08/01/06 10 10 Valero Energy Corp., 4.75%, 06/15/13 5 5 XTO Energy, Inc., 6.25%, 04/15/13 5 5 --------- 20 FINANCIAL - DIVERSIFIED - 1.6% American General Finance Corp., 5.38%, 10/01/12 5 5 Citigroup, Inc., 4.88%, 05/07/15 5 5 J.P. Morgan Chase & Co., 5.25%, 05/01/15 5 5 MBNA America Bank Corp., 4.63%, 09/15/08 10 10 --------- 25 INSURANCE - 0.7% Ace, Ltd., 6.00%, 04/01/07 5 5 Anthem, Inc., 6.80%, 08/01/12 5 6 --------- 11 INVESTMENT BANKING & BROKERAGE - 0.3% Goldman Sachs Group, Inc., 4.75%, 07/15/13 5 5 MANUFACTURING - 0.7% American Standard, Inc., 7.38%, 02/01/08 5 6 Jabil Circuit, Inc., 5.88%, 07/15/10 5 5 --------- 11 RETAIL - 1.1% Kroger Co., 5.50%, 02/01/13 5 5 The GAP, Inc., 10.55%, 12/15/08 5 6 Yum!Brands, 8.88%, 04/15/11 5 6 --------- 17 TELECOMMUNICATIONS - 0.6% Verizon Global Funding Corp., 4.38%, 06/01/13 10 9 --------- TOTAL CORPORATE BONDS 150 Cost: $151
28
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 10.4% FEDERAL HOME LOAN BANK - 1.9% 3.38%, 07/21/08 30 30 FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.0% 2.88%, 09/15/05 3 3 3.25%, 02/25/08 4 4 4.50%, 01/15/13 9 9 --------- 16 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 7.5% 1.88%, 12/15/04 6 6 3.25%, 01/15/08 9 9 5.25%, 01/15/09 14 15 6.38%, 06/15/09 3 3 4.38%, 09/15/12 4 4 6.50%, 07/01/32 7 7 6.00%, 11/01/32 9 9 5.50%, 03/01/33 42 43 5.50%, 04/01/33 20 20 --------- 116 --------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 162 Cost: $162 U.S. TREASURY NOTES - 0.3% 3.38%, 01/15/07 5 5 Cost: $5 REPURCHASE AGREEMENTS - 7.9% Fifth Third Bank, 0.60%, 01/02/04 (Proceeds at maturity $123, collateralized by Federal Home Loan Mortgage Corporation security, 7.00%, 08/01/29) Cost: $123 123 123 --------- TOTAL INVESTMENTS - 99.2% 1,543 Cost: $1,468(b)
Percentages indicated are based on net assets of $1,555. (a) Non-income producing security. (b) Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation $ 83 Unrealized depreciation (8) --------- Net unrealized appreciation $ 75
CITIZENS ULTRA SHORT BOND FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($) - -------------------------------------------------------------------------------- CORPORATE BONDS - 65.8% AUTOMOTIVE FINANCE - 24.1% American Honda Finance, 1.35%, 08/15/06 350 351 BMW Vehicle Owner Trust, 1.94%, 02/25/07 250 251 Capital Auto Receivables Asset Trust, 1.21%, 01/16/06 300 300 Ford Credit Auto Owner Trust, 5.25%, 09/15/05 100 102 Goldman Sachs Auto Loan Trust, 2.08%, 04/16/07 250 251 Harley-Davidson Motorcycle Trust, 1.34%, 01/15/08 140 140 Honda Auto Receivables Owner Trust, 2.16%, 10/21/08 200 197 Toyota Auto Receivables Owner Trust, 4.39%, 05/15/09 100 104 Toyota Trust, 1.69%, 03/15/07 250 250 USAA Auto Owners Trust, 1.58%, 06/15/07 250 249 Volkswagen Auto Loan Trust, 2.36%, 12/20/05 150 151 --------- 2,346 BANKS - 6.3% Bank of America Corp., 7.88%, 05/16/05 100 108 4.75%, 10/15/06 100 106 JP Morgan Chase & Co., 1.29%, 02/05/04 150 150 Wells Fargo Co., 1.21%, 03/24/05 250 250 --------- 614 BROADCASTING - 2.3% TCI Communications, 8.00%, 08/01/05 210 228 COMPUTERS - 2.2% Hewlett-Packard Co., 7.15%, 06/15/05 200 215 FINANCIAL - DIVERSIFIED - 19.7% American Express Co., 1.29%, 09/19/06 300 300 7.20%, 09/17/07 100 106 American General Finance, 7.45%, 01/15/05 50 53 3.00%, 11/15/06 250 252 Citibank Credit Card Master Trust, 6.65%, 11/15/06 150 157
29
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($) - -------------------------------------------------------------------------------- FINANCIAL - DIVERSIFIED (CONT.) Citicorp, 7.63%, 05/01/05 50 54 Countrywide Capital, 5.25%, 06/15/04 250 254 Goldman Sachs, 1.34%, 08/18/06500 501 501 Merrill Lynch & Co., 1.34%, 04/28/05 250 250 --------- 1,927 HEALTH CARE - 1.0% Pfizer, Inc., 3.63%, 11/01/04100 102 102 INSURANCE - 2.6% MetLife Global Funding, 1.32%, 08/28/06(a) 250 250 RETAIL - 2.2% Kroger Co., 7.38%, 03/01/05 200 212 TELECOMMUNICATIONS - 5.4% CBS Corp., 7.15%, 05/20/05 150 160 Chesapeake (Bell Atlantic Virginia), 6.13%, 07/15/05 100 107 Cox Communications Inc., 6.88%, 06/15/05 250 267 --------- 534 --------- TOTAL CORPORATE BONDS 6,428 Cost: $6,417 U.S. GOVERNMENT AGENCY OBLIGATIONS - 18.4% FEDERAL HOME LOAN BANK - 6.6% 2.00%, 10/16/06 200 197 2.75%, 10/30/06 200 200 3.00%, 05/14/07 250 251 --------- 648 FEDERAL HOME LOAN MORTGAGE CORPORATION - 7.0% 5.83%, 02/09/06 100 108 1.91%, 10/27/06 300 300 3.67%, 02/12/08 250 251 5.50%, 03/15/30 24 24 --------- 683 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.9% 2.38%, 03/17/06 250 250 5.50%, 11/25/13 32 32 --------- 282 STUDENT LOAN MARKETING ASSOCIATION - 1.9% 1.17%, 06/16/08 62 62 1.18%, 06/16/08 126 126 --------- 188 --------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 1,801 Cost $1,803 REPURCHASE AGREEMENTS - 15.4% Fifth Third Bank, 0.60%, 01/02/04 (Proceeds at maturity $1,502, collateralized by Federal Home Loan Mortgage Corporation security, 8.00%, 12/01/30) Cost: $1,502 1,502 1,502 --------- TOTAL INVESTMENTS - 99.6% 9,731 Cost: $9,722(b)
Percentages indicated are based on net assets of $9,769. (a) Rule 144A security. (b) Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation $ 24 Unrealized depreciation (15) --------- Net unrealized appreciation $ 9
CITIZENS INCOME FUND SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($) - -------------------------------------------------------------------------------- CORPORATE BONDS - 58.7% BANKS - 2.7% Banknorth Group, Inc., 3.75%, 05/01/08 500 499 Sovereign Bancorp, Inc., 10.50%, 11/15/06 995 1,177 --------- 1,676 BROADCASTING - 12.3% Clear Channel Communications, Inc., 4.40%, 05/15/11 1,490 1,454 Comcast Corp., 5.85%, 01/15/10 1,000 1,068 5.30%, 01/15/14 990 987 Cox Communications, Inc., 7.10%, 10/01/12 1,000 1,153 4.60%, 06/01/13 990 954 Liberty Media Corp., 5.70%, 05/15/13 995 1,006 Univison Communications, Inc., 7.85%, 07/15/11 1,000 1,189 --------- 7,811
30
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE($) - -------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT - 2.5% Fairchild Semiconductor, 10.50%, 02/01/09 495 552 Flextronics International, Ltd.,(a) 6.50%, 05/15/13 1,000 1,035 --------- 1,587 ENERGY & UTILITIES - 5.3% Devon Energy Corp., 2.75%, 08/01/06 1,340 1,341 Valero Energy Corp., 4.75%, 06/15/13 995 943 XTO Energy, Inc., 6.25%, 04/15/13 995 1,047 --------- 3,331 FINANCIAL - DIVERSIFIED - 8.1% American General Finance Corp., 5.40%, 10/01/12 995 1,026 Citigroup, Inc., 4.90%, 05/07/15 995 972 J.P. Morgan Chase & Co., 5.25%, 05/01/15 995 992 MBNA America Bank Corp., 4.60%, 09/15/08 990 1,016 7.10%, 11/15/12 1,000 1,143 --------- 5,149 HEALTH CARE - 1.8% AmerisourceBergen Corp., 8.10%, 09/01/08 1,000 1,128 INSURANCE - 4.3% Ace, Ltd., 6.00%, 04/01/07 995 1,078 Anthem, Inc., 6.80%, 08/01/12 995 1,124 Chubb Corp., 3.95%, 04/01/08(a) 500 505 --------- 2,707 INVESTMENT BANKING & BROKERAGE - 1.5% The Goldman Sachs Group, Inc., 4.75%, 07/15/13 995 970 LEISURE - 0.8% Harley-Davidson Funding, 3.60%, 12/15/08(a) 500 499 MANUFACTURING - 3.9% American Standard, Inc., 7.40%, 02/01/08 995 1,099 Jabil Circuit, Inc., 5.90%, 07/15/10 1,295 1,351 --------- 2,450 OFFICE EQUIPMENT & SUPPLIES - 0.8% Office Depot, 6.25%, 08/15/13(a) 500 525 RESTAURANTS - 1.7% Dominos, Inc., 8.25%, 07/01/11(a) 1,000 1,071 RETAIL - 5.5% Kroger Co., 5.50%, 02/01/13 995 1,012 The GAP, Inc., 10.55%, 12/15/08 995 1,227 Yum!Brands, 8.90%, 04/15/11 995 1,206 --------- 3,445 SERVICES - 2.5% Cendant Corp., 6.25%, 01/15/08 995 1,085 Fiserv, Inc., 4.00%, 04/15/08(a) 500 498 --------- 1,583 TELECOMMUNICATIONS - 5.0% Nextel Communicatins, Inc., 7.40%, 08/01/15 1,000 1,075 Verizon Global Funding Corp., 7.40%, 09/01/12 1,000 1,159 4.40%, 06/01/13 990 935 --------- 3,169 --------- TOTAL CORPORATE BONDS 37,101 Cost: $35,458 U.S. GOVERNMENT AGENCY OBLIGATIONS - 31.5% FEDERAL HOME LOAN MORTGAGE CORPORATION - 14.1% 1.90%, 10/27/06 1,000 1,000 4.50%, 07/23/07 1,000 1,016 4.00%, 06/15/13 3,000 3,048 6.25%, 11/14/13 1,000 1,060 3.50%, 03/15/14 2,803 2,815 --------- 8,939 FEDERAL NATIONAL MORTGAGE ASSOCIATION - 14.0% 2.75%, 08/11/06 2,000 2,001 6.50%, 08/01/31 1,077 1,126 6.00%, 08/01/32 1,072 1,108 5.50%, 04/01/33 4,560 4,622 --------- 8,857 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 3.4% 6.00%, 04/15/31 104 108 6.50%, 12/15/31 657 693 6.50%, 06/15/32 1,268 1,337 --------- 2,138 --------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 19,934 Cost: $19,853 U.S. TREASURY NOTES - 4.0% 3.40%, 01/15/07 2,335 2,530 Cost: $2,494
31
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS - 5.0% Fifth Third Bank, 0.60%, 01/02/04 (Proceeds at maturity $3,149, collateralized by Federal National Mortgage Association security, 4.50%, 07/01/18) Cost: $3,149 3,149 3,149 --------- TOTAL INVESTMENTS - 99.2% 62,714 Cost: $60,954(b)
Percentages indicated are based on net assets of $63,203. (a) Rule 144A security. (b) Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation $ 2,090 Unrealized depreciation (330) --------- Net unrealized appreciation $ 1,760
CITIZENS MONEY MARKET FUND
SECURITY SHARES VALUE ($) - -------------------------------------------------------------------------------- MUTUAL FUNDS - 98.3% Citizens Prime Money Market Fund Cost: $99,966 99,966 99,966 --------- TOTAL INVESTMENTS - 98.3% 99,966 Cost: $99,966
Percentages indicated are based on net assets of $101,703. CITIZENS PRIME MONEY MARKET FUND
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($) - -------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT - 2.6% City National Bank of New Jersey, 1.50%, 03/17/04(a) 100 100 Independence Federal Savings Bank, 1.30%, 09/26/04(a) 100 100 Mercantile Safe Deposit and Trust, 1.20%, 06/02/04 2,000 2,000 Self Help Credit Union, 1.30%, 03/14/04(a) 100 100 U.S. Bank, 1.42%, 01/08/04 2,000 2,000 --------- TOTAL CERTIFICATES OF DEPOSIT 4,300 Cost: $4,300 COMMERCIAL PAPER - 80.5% American Express Credit Corp., 1.02%, 01/08/04 5,000 4,999 American General Finance Corp., 1.13%, 01/05/04 7,500 7,499 Atlantis One Funding Corp., 1.13%, 04/21/04(b) 4,000 3,986 Blue Ridge Asset Funding, 1.08%, 01/07/04(b) 7,500 7,499 Citicorp, 1.04%, 01/06/04 8,000 7,998 Coca Cola Co., 1.07%, 01/30/04(b) 1,600 1,599 Cooperative Association of Tractor Dealers, 1.10%, 01/06/04 7,000 6,999 1.17%, 02/18/04 2,593 2,589 1.17%, 05/12/04 2,200 2,191 Countrywide Home Loans, 0.99%, 01/09/04 8,000 7,998 Dow Jones & Co, Inc., 1.08%, 01/06/04(b) 1,988 1,988 Fountain Square, 1.08%, 01/06/04(b) 8,000 7,998 Galaxy Funding, Inc., 1.10%, 01/21/04(b) 4,000 3,998 Galleon Capital Corp., 1.10%, 01/23/04(b) 7,500 7,495 Gillette Co., 0.83%, 01/02/04(b) 8,000 7,999 The Goldman Sachs Group, 0.92%, 01/26/04 2,200 2,199 1.32%, 08/23/04 3,500 3,470 ING America Insurance, 1.10%, 02/18/04 7,000 6,990 J.P. Morgan Chase & Co., 1.08%, 02/17/04 2,433 2,430 Marsh and McLennan Cos., Inc., 1.05%, 01/09/04(b) 8,000 7,997 Merrill Lynch, 1.05%, 01/06/04 3,000 3,000 Metlife Funding Inc., 1.03%, 01/12/04 7,500 7,498 Mid States Federal Credit Union Corp., 1.09%, 01/05/04 7,009 7,008 New York Times Co., 0.90%, 01/02/04 940 940 State Street Corp., 1.05%, 01/02/04 8,050 8,049
32
SECURITY, RATE, MATURITY DATE PRINCIPAL ($) VALUE ($) - -------------------------------------------------------------------------------- UBS Finance Corp., 1.98%, 01/05/04 2,115 2,115 --------- TOTAL COMMERCIAL PAPER 134,531 Cost: $134,531 CORPORATE BONDS - 9.9% American Express Centurion Bank, 1.13%, 07/14/04 (c) 3,000 3,000 The Bear Stearns Cos., 1.12%, 03/25/04 (c) 5,000 5,000 Merrill Lynch and Co, Inc., 1.47%, 03/08/04 (c) 5,000 5,003 Pelican Capital LLC, 1.31%, 04/01/28 (c) 560 560 Redding Life Care LLC, 1.15%, 10/10/05 (c) 3,000 3,000 --------- TOTAL CORPORATE BONDS 16,563 Cost: $16,563 MUNICIPAL NOTES - 2.1% New York State Housing Finance Agency, 1.13%, 11/15/29 (c) 3,500 3,500 Cost: $3,500 U.S. GOVERNMENT AGENCY OBLIGATIONS - 4.8% STUDENT LOAN MARKETING ASSOCIATION - 4.8% 0.99%, 01/15/04 (c) 4,000 4,000 0.94%, 04/15/04 (c) 4,000 4,000 --------- Cost: $8,000 8,000 REPURCHASE AGREEMENTS - 0.1% Fifth Third Bank, 0.60%, 01/02/04 (Proceeds at maturity $126, collarteralized by Federal Home Loan Mortgage Corporation security, 7.50%, 11/01/29) Cost: $126 126 126 --------- TOTAL INVESTMENTS - 100.0% 167,020 Cost: $167,020 (d)
Percentages indicated are based on net assets of $166,966. (a) Restricted security which may not be publicly sold without registration under the Securities Act of 1933. (b) Rule 144A security (c) Variable rate security. The rate presented represents the rate in effect at December 31, 2003. (d) Represents cost for financial reporting and federal income tax purposes. 33
STATEMENTS OF ASSETS AND LIABILITIES 300 CORE GROWTH EMERGING SMALL CAP CORE FUND FUND GROWTH FUND GROWTH FUND - -------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value $ 4,425,926 $ 377,557,523 $ 189,741,921 $ 25,335,437 Repurchase agreements 14,438 3,293,663 3,064,066 238,936 ------------- ------------- ------------- ------------- Total investments 4,440,364 380,851,186 192,805,987 25,574,373 Cash - - - - Foreign currency - - - - Receivables: Interest and dividends 3,157 110,921 88,686 932 Investments sold - 29,280,445 - 174,245 Tax reclaims - - - - Due from investment adviser 2,922 - - - Unrealized appreciation on forward foreign currency contracts - - - - Deferred offering costs 7,577 - - - Prepaid expenses 13,516 35,147 24,486 10,396 - ------------------------------------------------------------------------------------------------------------- Total assets 4,467,536 410,277,699 192,919,159 25,759,946 LIABILITIES Payables: Dividends to shareholders - - - - Investments purchased 13,860 32,551,239 699,890 222,447 Capital shares redeemed - - 1,295 - Unrealized depreciation on forward foreign currency contracts - - - - Investment management fees - 157,315 160,576 10,441 Administrative fees 487 47,195 24,087 3,132 Shareholder service fees 287 49,934 15,113 1,233 Distribution fees 812 65,426 39,277 5,220 Other accrued expenses 5,777 229,694 140,987 18,208 - ------------------------------------------------------------------------------------------------------------- Total liabilities 21,223 33,100,803 1,081,225 260,681 - ------------------------------------------------------------------------------------------------------------- NET ASSETS $ 4,446,313 $ 377,176,896 $ 191,837,934 $ 25,499,265 - ------------------------------------------------------------------------------------------------------------- NET ASSETS Standard shares: Net assets $ 4,446,313 $ 311,485,854 $ 176,336,231 $ 25,499,265 Number of shares outstanding 405,353 16,864,377 13,778,271 2,410,689 Net asset value, offering and redemption price per share $ 10.97 $ 18.47 $ 12.80 $ 10.58 Institutional shares: Net assets - $ 62,988,889 $ 3,716,031 - Number of shares outstanding - 4,133,094 282,586 - Net asset value, offering and redemption price per share - $ 15.24 $ 13.15 - Administrative shares: Net assets - $ 2,702,153 $ 11,785,672 - Number of shares outstanding - 143,877 907,205 - Net asset value, offering and redemption price per share - $ 18.78 $ 12.99 - Net assets consist of: Paid-in capital $ 4,138,689 $ 418,381,748 $ 372,291,501 $ 24,008,824 Accumulated net investment income/loss 94 (1,100,424) (1,352,990) (152,930) Accumulated net realized gains/losses on investments and foreign currencies 1,989 (100,067,303) (206,319,536) (847,178) Net unrealized appreciation on investments and foreign currencies 305,541 59,962,875 27,218,959 2,490,549 - ------------------------------------------------------------------------------------------------------------- NET ASSETS $ 4,446,313 $ 377,176,896 $ 191,837,934 $ 25,499,265 - ------------------------------------------------------------------------------------------------------------- Investments, at cost $ 4,134,823 $ 320,888,311 $ 165,587,028 $ 23,083,824 Foreign currency, at cost - - - -
See Financial Notes 34 AS OF DECEMBER 31, 2003 UNAUDITED
VALUE GLOBAL EQUITY BALANCED ULTRA SHORT FUND FUND FUND BOND FUND - ------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value $ 20,434,778 $ 120,252,667 $ 1,420,152 $ 8,228,592 Repurchase agreements 124,151 1,335,746 122,599 1,501,978 - ------------------------------------------------------------------------------------------------------------- Total investments 20,558,929 121,588,413 1,542,751 9,730,570 Cash - - - - Foreign currency - 2,406 - - Receivables: Interest and dividends 38,721 114,321 4,333 42,852 Investments sold - - - - Tax reclaims - 69,820 - - Due from investment adviser - - 4,733 9,420 Unrealized appreciation on forward foreign currency contracts - 1,429 - - Deferred offering costs - - - - Prepaid expenses 6,174 23,808 7,334 7,829 - ------------------------------------------------------------------------------------------------------------- Total assets 20,603,824 121,800,197 1,559,151 9,790,671 LIABILITIES Payables: Dividends to shareholders - - 1,297 15,446 Investments purchased 52,402 - - - Capital shares redeemed - 1,395 - - Unrealized depreciation on forward foreign currency contracts - 1,429 - - Investment management fees 11,773 100,780 - - Administrative fees 2,523 15,104 185 1,270 Shareholder service fees 1,679 6,830 55 142 Distribution fees 4,205 23,628 308 2,117 Other accrued expenses 17,919 74,873 2,793 2,245 - ------------------------------------------------------------------------------------------------------------- Total liabilities 90,501 224,039 4,638 21,220 - ------------------------------------------------------------------------------------------------------------- NET ASSETS $ 20,513,323 $ 121,576,158 $ 1,554,513 $ 9,769,451 - ------------------------------------------------------------------------------------------------------------- NET ASSETS Standard shares: Net assets $ 20,513,323 $ 111,471,690 $ 1,554,513 $ 9,769,451 Number of shares outstanding 2,035,057 7,186,261 137,482 979,431 Net asset value, offering and redemption price per share $ 10.08 $ 15.51 $ 11.31 $ 9.97 Institutional shares: Net assets - $ 7,549,264 - - Number of shares outstanding - 475,692 - - Net asset value, offering and redemption price per share - $ 15.87 - - Administrative shares: Net assets - $ 2,555,204 - - Number of shares outstanding - 163,007 - - Net asset value, offering and redemption price per share - $ 15.68 - - Net assets consist of: Paid-in capital $ 28,338,187 $ 244,227,482 $ 1,409,333 $ 9,838,856 Accumulated net investment income/loss (12,233) (1,013,051) (481) (8,647) Accumulated net realized gains/losses on investments and foreign currencies (10,266,327) (135,306,568) 70,923 (69,734) Net unrealized appreciation on investments and foreign currencies 2,453,696 13,668,295 74,738 8,976 - ------------------------------------------------------------------------------------------------------------- NET ASSETS $ 20,513,323 $ 121,576,158 $ 1,554,513 $ 9,769,451 - ------------------------------------------------------------------------------------------------------------- Investments, at cost $ 18,105,233 $ 107,931,931 $ 1,468,013 $ 9,721,594 Foreign currency, at cost - 2,398 - - INCOME MONEY MARKET PRIME MONEY FUND FUND MARKET FUND - --------------------------------------------------------------------------------------------- ASSETS Investments, at value $ 59,565,132 $ 99,965,686 $ 166,894,372 Repurchase agreements 3,149,346 - 125,627 - --------------------------------------------------------------------------------------------- Total investments 62,714,478 99,965,686 167,019,999 Cash - 1,783,503 - Foreign currency - - - Receivables: Interest and dividends 769,502 92,271 83,744 Investments sold - - - Tax reclaims - - - Due from investment adviser - - 9,258 Unrealized appreciation on forward foreign currency contracts - - - Deferred offering costs - - 8,134 Prepaid expenses 8,784 20,594 3,310 - --------------------------------------------------------------------------------------------- Total assets 63,492,764 101,862,054 167,124,445 LIABILITIES Payables: Dividends to shareholders 192,706 10,788 151,286 Investments purchased - - - Capital shares redeemed - - - Unrealized depreciation on forward foreign currency contracts - - - Investment management fees 34,928 30,484 - Administrative fees 8,060 13,065 - Shareholder service fees 2,693 7,013 2 Distribution fees 13,434 - - Other accrued expenses 38,070 97,946 7,470 - --------------------------------------------------------------------------------------------- Total liabilities 289,891 159,296 158,758 - --------------------------------------------------------------------------------------------- NET ASSETS $ 63,202,873 $ 101,702,758 $ 166,965,687 - --------------------------------------------------------------------------------------------- NET ASSETS Standard shares: Net assets $ 63,202,873 $ 91,309,317 $ 166,965,687 Number of shares outstanding 6,254,104 91,382,660 166,965,687 Net asset value, offering and redemption price per share $ 10.11 $ 1.00 $ 1.00 Institutional shares: Net assets - $ 10,393,441 - Number of shares outstanding - 10,395,232 - Net asset value, offering and redemption price per share - $ 1.00 - Administrative shares: Net assets - - - Number of shares outstanding - - - Net asset value, offering and redemption price per share - - - Net assets consist of: Paid-in capital $ 67,366,002 $ 101,711,841 $ 166,965,687 Accumulated net investment income/loss (117,714) - - Accumulated net realized gains/losses on investments and foreign currencies (5,805,648) (9,083) - Net unrealized appreciation on investments and foreign currencies 1,760,233 - - - --------------------------------------------------------------------------------------------- NET ASSETS $ 63,202,873 $ 101,702,758 $ 166,965,687 - --------------------------------------------------------------------------------------------- Investments, at cost $ 60,954,245 $ 99,965,686 $ 167,019,999 Foreign currency, at cost - - -
35
STATEMENTS OF OPERATIONS 300 CORE GROWTH EMERGING SMALL CAP CORE FUND FUND GROWTH FUND GROWTH FUND - -------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 281 $ 12,527 $ 14,446 $ 2,714 Dividend(3) 12,645 1,444,897 392,195 13,811 - ------------------------------------------------------------------------------------------------------------- Total investment income 12,926 1,457,424 406,641 16,525 EXPENSES Investment management fees 1,927 924,310 929,029 55,618 Administrative fees 1,445 277,296 139,356 16,686 Distribution fees: Standard shares 2,409 376,168 212,517 27,809 Administrative shares - 3,199 12,950 - Shareholder service fees: Standard shares 383 378,997 67,684 7,700 Institutional shares - 552 74 - Administrative shares - 92 156 - Transfer agent expenses: Standard shares 4,542 368,086 267,555 29,713 Institutional shares - 1,725 184 - Administrative shares - 777 2,208 - Accounting expenses 2,449 69,811 35,078 5,934 Custody expenses 5,332 9,208 8,888 8,835 Offering costs 2,714 - - - Trustee expenses 122 28,543 14,232 1,569 Other expenses 6,279 121,119 70,713 15,770 - ------------------------------------------------------------------------------------------------------------- Total expenses before reimbursements, waivers,or expenses paid indirectly 27,602 2,559,883 1,760,624 169,634 Reimbursements or waivers from adviser (18,825) - - - Expenses paid indirectly - (2,035) (993) (179) - ------------------------------------------------------------------------------------------------------------- Net expenses 8,777 2,557,848 1,759,631 169,455 - ------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME/LOSS $ 4,149 $ (1,100,424) $ (1,352,990) $ (152,930) REALIZED AND UNREALIZED GAINS/LOSSES ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS Realized gains/losses on investments and foreign currency transactions $ 1,989 $ 30,132,322 $ 19,432,545 $ 3,595,359 Change in unrealized appreciation/depreciation on investments and foreign currencies 305,541 13,753,992 10,157,361 692,599 - ------------------------------------------------------------------------------------------------------------- Net realized and unrealized gains/losses on investments and foreign currencies 307,530 43,886,314 29,589,906 4,287,958 CHANGE IN NET ASSETS FROM OPERATIONS $ 311,679 $ 42,785,890 $ 28,236,916 $ 4,135,028
(1) For the period August 29, 2003, commencement of operations, to December 31, 2003. (2) For the period July 1, 2003, commencement of operations, to December 31, 2003. (3) Dividend income net of withholding taxes. For the six months ended December 31, 2003, withholding taxes for the Global Equity Fund were $44,418. See Financial Notes 36 FOR THE SIX MONTHS ENDED DECEMBER 31, 2003 UNAUDITED
VALUE GLOBAL EQUITY BALANCED ULTRA SHORT FUND FUND FUND BOND FUND - ------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 1,249 $ 5,136 $ 6,575 $ 96,604 Dividend(3) 148,786 651,081 3,552 - - ------------------------------------------------------------------------------------------------------------- Total investment income 150,035 656,217 10,127 96,604 EXPENSES Investment management fees 63,174 571,615 4,160 18,555 Administrative fees 13,537 85,743 960 7,952 Distribution fees: Standard shares 22,562 131,084 1,600 13,253 Administrative shares - 2,830 - - Shareholder service fees: Standard shares 8,239 31,753 487 1,408 Institutional shares - 74 - - Administrative shares - 92 - - Transfer agent expenses: Standard shares 32,243 176,927 6,750 8,633 Institutional shares - 276 - - Administrative shares - 1,012 - - Accounting expenses 5,566 25,525 2,907 4,756 Custody expenses 3,018 7,082 2,059 2,438 Offering costs - - 6,149 5,419 Trustee expenses 1,357 9,098 530 386 Other expenses 12,621 55,870 12,454 16,235 - ------------------------------------------------------------------------------------------------------------- Total expenses before reimbursements, waivers,or expenses paid indirectly 162,317 1,098,981 38,056 79,035 Reimbursements or waivers from adviser - - (29,718) (77,331) Expenses paid indirectly (49) - - - - ------------------------------------------------------------------------------------------------------------- Net expenses 162,268 1,098,981 8,338 1,704 - ------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME/LOSS $ (12,233) $ (442,764) $ 1,789 $ 94,900 REALIZED AND UNREALIZED GAINS/LOSSES ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS Realized gains/losses on investments and foreign currency transactions $ 1,404,021 $ (3,295,807) $ 78,568 $ (61,702) Change in unrealized appreciation/depreciation on investments and foreign currencies 1,421,691 20,066,279 48,977 (29,509) - ------------------------------------------------------------------------------------------------------------- Net realized and unrealized gains/losses on investments and foreign currencies 2,825,712 16,770,472 127,545 (91,211) CHANGE IN NET ASSETS FROM OPERATIONS $ 2,813,479 $ 16,327,708 $ 129,334 $ 3,689 INCOME MONEY MARKET PRIME MONEY FUND(1) FUND MARKET FUND(2) - --------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 1,527,734 $ 3,973 $ 855,722 Dividend(3) - 578,981 - - --------------------------------------------------------------------------------------------- Total investment income 1,527,734 582,954 855,722 EXPENSES Investment management fees 215,999 188,971 195,620 Administrative fees 49,846 80,989 - Distribution fees: Standard shares 83,076 - - Administrative shares - - - Shareholder service fees: Standard shares 15,793 31,724 2 Institutional shares - 340 - Administrative shares - - - Transfer agent expenses: Standard shares 61,340 137,298 2,562 Institutional shares - 827 - Administrative shares - - - Accounting expenses 16,946 21,701 8,853 Custody expenses 2,770 1,453 6,449 Offering costs - - 6,410 Trustee expenses 5,364 9,131 3,169 Other expenses 25,455 49,301 8,861 - --------------------------------------------------------------------------------------------- Total expenses before reimbursements, waivers,or expenses paid indirectly 476,589 521,735 231,926 Reimbursements or waivers from adviser - - (231,926) Expenses paid indirectly - - - - --------------------------------------------------------------------------------------------- Net expenses 476,589 521,735 - - --------------------------------------------------------------------------------------------- NET INVESTMENT INCOME/LOSS $ 1,051,145 $ 61,219 $ 855,722 REALIZED AND UNREALIZED GAINS/LOSSES ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS Realized gains/losses on investments and foreign currency transactions $ (22,670) - - Change in unrealized appreciation/depreciation on investments and foreign currencies (1,043,169) - - - --------------------------------------------------------------------------------------------- Net realized and unrealized gains/losses on investments and foreign currencies (1,065,839) - - CHANGE IN NET ASSETS FROM OPERATIONS $ (14,694) $ 61,219 $ 855,722
37 STATEMENTS OF CHANGES IN NET ASSETS
300 FUND CORE GROWTH FUND - ------------------------------------------------------------------------------------------------------- FOR THE PERIOD FOR THE SIX 08/29/03(1) -MONTHS ENDED FOR THE 12/31/03 12/31/03 YEAR ENDED (UNAUDITED) (UNAUDITED) 06/30/03 - ------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income/loss $ 4,149 $ (1,100,424) $ (520,790) Realized gains/losses on investments and foreign currency transactions 1,989 30,132,322 (39,810,514) Change in unrealized appreciation/depreciation on investments and foreign currencies 305,541 13,753,992 29,592,435 - --------------------------------------------------------------------------------------------------- Change in net assets from operations 311,679 42,785,890 (10,738,869) Dividends to shareholders: From net investment income: Standard shares (4,055) - - Change in net assets from capital transactions 4,138,689 (16,945,101) (51,887,083) CHANGE IN NET ASSETS $ 4,446,313 $ 25,840,789 $ (62,625,952) - --------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period $ - $ 351,336,107 $ 413,962,059 End of period $ 4,446,313 $ 377,176,896 $ 351,336,107 - --------------------------------------------------------------------------------------------------- Accumulated net investment income/loss $ 94 $ (1,100,424) - CAPITAL TRANSACTIONS Standard shares Proceeds from shares issued $ 4,134,725 $ 10,350,458 $ 20,813,812 Dividends reinvested 4,044 - - Cost of shares redeemed (80) (18,955,441) (53,825,105) - --------------------------------------------------------------------------------------------------- Net change 4,138,689 (8,604,983) (33,011,293) Institutional shares Proceeds from shares issued - $ 12,298,571 $ 27,922,878 Cost of shares redeemed - (20,616,986) (47,184,580) - --------------------------------------------------------------------------------------------------- Net change - (8,318,415) (19,261,702) - --------------------------------------------------------------------------------------------------- Administrative shares Proceeds from shares issued - $ 370,225 $ 1,251,277 Cost of shares redeemed - (391,928) (865,365) - --------------------------------------------------------------------------------------------------- Net change - (21,703) 385,912 - --------------------------------------------------------------------------------------------------- CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 4,138,689 $ (16,945,101) $ (51,887,083) - --------------------------------------------------------------------------------------------------- SHARE TRANSACTIONS Standard shares Issued 404,987 594,481 1,364,126 Reinvested 374 - - Redeemed (8) (1,084,301) (3,545,634) - --------------------------------------------------------------------------------------------------- Net change 405,353 (489,820) (2,181,508) - --------------------------------------------------------------------------------------------------- Institutional shares Issued - 866,497 2,233,874 Redeemed - (1,436,900) (3,763,348) Net change - (570,403) (1,529,474) Administrative shares Issued - 20,778 80,682 Redeemed - (22,329) (55,257) - --------------------------------------------------------------------------------------------------- Net change - (1,551) 25,425 - --------------------------------------------------------------------------------------------------- CHANGE IN SHARES FROM SHARE TRANSACTIONS 405,353 (1,061,774) (3,685,557) EMERGING GROWTH FUND - --------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE 12/31/03 YEAR ENDED (UNAUDITED) 06/30/03 - --------------------------------------------------------------------------------- OPERATIONS Net investment income/loss $ (1,352,990) $ (2,526,279) Realized gains/losses on investments and foreign currency transactions 19,432,545 (45,670,710) Change in unrealized appreciation/depreciation on investments and foreign currencies 10,157,361 31,865,153 - --------------------------------------------------------------------------------- Change in net assets from operations 28,236,916 (16,331,836) Dividends to shareholders: From net investment income: Standard shares - - Change in net assets from capital transactions (8,249,808) (17,500,693) CHANGE IN NET ASSETS $ 19,987,108 $ (33,832,529) - --------------------------------------------------------------------------------- NET ASSETS Beginning of period $ 171,850,826 $ 205,683,355 End of period $ 191,837,934 $ 171,850,826 - --------------------------------------------------------------------------------- Accumulated net investment income/loss $ (1,352,990) - CAPITAL TRANSACTIONS Standard shares Proceeds from shares issued $ 11,144,944 $ 37,852,532 Dividends reinvested - - Cost of shares redeemed (18,580,951) (55,356,284) - --------------------------------------------------------------------------------- Net change (7,436,007) (17,503,752) Institutional shares Proceeds from shares issued $ 898,299 $ 2,821,812 Cost of shares redeemed (3,413,744) (3,432,566) - --------------------------------------------------------------------------------- Net change (2,515,445) (610,754) - --------------------------------------------------------------------------------- Administrative shares Proceeds from shares issued $ 4,241,198 $ 6,162,025 Cost of shares redeemed (2,539,554) (5,548,212) - --------------------------------------------------------------------------------- Net change 1,701,644 613,813 - --------------------------------------------------------------------------------- CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (8,249,808) $ (17,500,693) - --------------------------------------------------------------------------------- SHARE TRANSACTIONS Standard shares Issued 934,360 3,719,462 Reinvested - - Redeemed (1,558,560) (5,464,486) - --------------------------------------------------------------------------------- Net change (624,200) (1,745,024) - --------------------------------------------------------------------------------- Institutional shares Issued 70,702 273,794 Redeemed (267,082) (329,608) Net change (196,380) (55,814) Administrative shares Issued 346,107 597,115 Redeemed (209,500) (534,955) - --------------------------------------------------------------------------------- Net change 136,607 62,160 - --------------------------------------------------------------------------------- CHANGE IN SHARES FROM SHARE TRANSACTIONS (683,973) (1,738,678)
(1) Commencement of operations. See Financial Notes 38
SMALL CAP CORE GROWTH FUND VALUE FUND - --------------------------------------------------------------------------------------------------------------------- FOR THE SIX FOR THE SIX MONTHS ENDED FOR THE MONTHS ENDED FOR THE 12/31/03 YEAR ENDED 12/31/03 YEAR ENDED (UNAUDITED) 06/30/03 (UNAUDITED) 06/30/03 - --------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income/loss $ (152,930) $ (175,082) $ (12,233) $ (99,467) Realized gains/losses on investments and foreign currency transactions 3,595,359 (3,605,564) 1,404,021 (10,282,004) Change in unrealized appreciation/depreciation on investments and foreign currencies 692,599 2,748,439 1,421,691 9,608,668 - --------------------------------------------------------------------------------------------------------------------- Change in net assets from operations 4,135,028 (1,032,207) 2,813,479 (772,803) Dividends to shareholders: From net investment income: Standard shares - - - - Change in net assets from capital transactions 3,543,015 394,033 1,473,525 (4,060,871) CHANGE IN NET ASSETS $ 7,678,043 $ (638,174) $ 4,287,004 $ (4,833,674) - --------------------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period $ 17,821,222 $ 18,459,396 $ 16,226,319 $ 21,059,993 End of period $ 25,499,265 $ 17,821,222 $ 20,513,323 $ 16,226,319 - --------------------------------------------------------------------------------------------------------------------- Accumulated net investment income/loss $ (152,930) - $ (12,233) - CAPITAL TRANSACTIONS Standard shares Proceeds from shares issued $ 5,430,416 $ 5,237,434 $ 3,536,125 $ 6,319,550 Dividends reinvested - - - - Cost of shares redeemed (1,887,401) (4,843,401) (2,062,600) (10,380,421) - --------------------------------------------------------------------------------------------------------------------- Net change 3,543,015 394,033 1,473,525 (4,060,871) Institutional shares Proceeds from shares issued - - - - Cost of shares redeemed - - - - - --------------------------------------------------------------------------------------------------------------------- Net change - - - - - --------------------------------------------------------------------------------------------------------------------- Administrative shares Proceeds from shares issued - - - - Cost of shares redeemed - - - - - --------------------------------------------------------------------------------------------------------------------- Net change - - - - - --------------------------------------------------------------------------------------------------------------------- CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 3,543,015 $ 394,033 $ 1,473,525 $ (4,060,871) - --------------------------------------------------------------------------------------------------------------------- SHARE TRANSACTIONS Standard shares Issued 548,732 672,716 379,333 819,291 Reinvested - - - - Redeemed (193,103) (628,978) (222,436) (1,349,990) - --------------------------------------------------------------------------------------------------------------------- Net change 355,629 43,738 156,897 (530,699) - --------------------------------------------------------------------------------------------------------------------- Institutional shares Issued - - - - Redeemed - - - - - --------------------------------------------------------------------------------------------------------------------- Net change - - - - - --------------------------------------------------------------------------------------------------------------------- Administrative shares Issued - - - - Redeemed - - - - - --------------------------------------------------------------------------------------------------------------------- Net change - - - - - --------------------------------------------------------------------------------------------------------------------- CHANGE IN SHARES FROM SHARE TRANSACTIONS 355,629 43,738 156,897 (530,699) GLOBAL EQUITY FUND - --------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE 12/31/03 YEAR ENDED (UNAUDITED) 06/30/03 - --------------------------------------------------------------------------------- OPERATIONS Net investment income/loss $ (442,764) $ (245,695) Realized gains/losses on investments and foreign currency transactions (3,295,807) (20,092,299) Change in unrealized appreciation/depreciation on investments and foreign currencies 20,066,279 10,231,205 - --------------------------------------------------------------------------------- Change in net assets from operations 16,327,708 (10,106,789) Dividends to shareholders: From net investment income: Standard shares - - Change in net assets from capital transactions (5,344,109) (26,919,108) CHANGE IN NET ASSETS $ 10,983,599 $ (37,025,897) - --------------------------------------------------------------------------------- NET ASSETS Beginning of period $ 110,592,559 $ 147,618,456 End of period $ 121,576,158 $ 110,592,559 - --------------------------------------------------------------------------------- Accumulated net investment income/loss $ (1,013,051) $ (570,287) CAPITAL TRANSACTIONS Standard shares Proceeds from shares issued $ 8,469,039 $ 25,646,368 Dividends reinvested - - Cost of shares redeemed (13,794,772) (50,286,863) - --------------------------------------------------------------------------------- Net change (5,325,733) (24,640,495) Institutional shares Proceeds from shares issued $ 10,174,574 $ 37,771,071 Cost of shares redeemed (10,348,213) (40,033,225) - --------------------------------------------------------------------------------- Net change (173,639) (2,262,154) - --------------------------------------------------------------------------------- Administrative shares Proceeds from shares issued $ 292,878 $ 706,362 Cost of shares redeemed (137,615) (722,821) - --------------------------------------------------------------------------------- Net change 155,263 (16,459) - --------------------------------------------------------------------------------- CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (5,344,109) $ (26,919,108) - --------------------------------------------------------------------------------- SHARE TRANSACTIONS Standard shares Issued 547,514 1,995,494 Reinvested - - Redeemed (969,989) (3,944,883) - --------------------------------------------------------------------------------- Net change (422,475) (1,949,389) - --------------------------------------------------------------------------------- Institutional shares Issued 721,787 2,906,867 Redeemed (735,984) (3,078,716) - --------------------------------------------------------------------------------- Net change (14,197) (171,849) - --------------------------------------------------------------------------------- Administrative shares Issued 20,083 55,041 Redeemed (9,496) (56,965) - --------------------------------------------------------------------------------- Net change 10,587 (1,924) - --------------------------------------------------------------------------------- CHANGE IN SHARES FROM SHARE TRANSACTIONS (426,085) (2,123,162)
39
BALANCED FUND ULTRA SHORT BOND FUND - -------------------------------------------------------------------------------------------------------------------- FOR THE SIX FOR THE SIX FOR THE PERIOD MONTHS ENDED FOR THE PERIOD -MONTHS ENDED 11/21/02(1)- 12/31/03 12/20/02(1) 12/31/03 06/30/03 (UNAUDITED) 06/30/03 (UNAUDITED) - -------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 1,789 $ 1,205 $ 94,900 $ 82,660 Realized gains/losses on investments 78,568 24,140 (61,702) (2,413) Change in unrealized appreciation/depreciation on investments 48,977 25,761 (29,509) 38,485 - -------------------------------------------------------------------------------------------------------------------- Change in net assets from operations 129,334 51,106 3,689 118,732 Dividends to shareholders: From net investment income: Standard shares (2,426) (1,502) (102,571) (89,255) Institutional shares - - - - From net realized gains on investments: Standard shares (31,488) - - - - -------------------------------------------------------------------------------------------------------------------- Total dividends (33,914) (1,502) (102,571) (89,255) Change in net assets from capital transactions 398,027 1,011,462 616,410 9,222,446 CHANGE IN NET ASSETS $ 493,447 $ 1,061,066 $ 517,528 $ 9,251,923 - -------------------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period $ 1,061,066 $ - $ 9,251,923 $ - End of period $ 1,554,513 $ 1,061,066 $ 9,769,451 $ 9,251,923 - -------------------------------------------------------------------------------------------------------------------- Accumulated net investment income/loss $ (481) $ 156 $ (8,647) $ (976) CAPITAL TRANSACTIONS Standard shares Proceeds from shares issued $ 457,054 $ 1,049,586 $ 3,998,308 $ 10,640,331 Dividends reinvested 33,793 325 95,151 70,753 Cost of shares redeemed (92,820) (38,449) (3,477,049) (1,488,638) - -------------------------------------------------------------------------------------------------------------------- Net change 398,027 1,011,462 616,410 9,222,446 - -------------------------------------------------------------------------------------------------------------------- Institutional shares Proceeds from shares issued - - - - Dividends reinvested - - - - Cost of shares redeemed - - - - - -------------------------------------------------------------------------------------------------------------------- Net change - - - - - -------------------------------------------------------------------------------------------------------------------- CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 398,027 $ 1,011,462 $ 616,410 $ 9,222,446 - -------------------------------------------------------------------------------------------------------------------- SHARE TRANSACTIONS Standard shares Issued 41,644 104,984 399,048 1,060,718 Reinvested 3,031 33 9,535 7,042 Redeemed (8,550) (3,660) (348,763) (148,149) - -------------------------------------------------------------------------------------------------------------------- Net change 36,125 101,357 59,820 919,611 - -------------------------------------------------------------------------------------------------------------------- Institutional shares Issued - - - - Reinvested - - - - Redeemed - - - - - -------------------------------------------------------------------------------------------------------------------- Net change - - - - - -------------------------------------------------------------------------------------------------------------------- CHANGE IN SHARES FROM SHARE TRANSACTIONS 36,125 101,357 59,820 919,611
(1) Commencement of operations. See Financial Notes 40
INCOME FUND MONEY MARKET FUND - -------------------------------------------------------------------------------------------------------------------- FOR THE SIX FOR THE SIX MONTHS ENDED FOR THE MONTHS ENDED FOR THE 12/31/03 YEAR ENDED 12/31/03 YEAR ENDED (UNAUDITED) 06/30/03 (UNAUDITED) 06/30/03 - -------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 1,051,145 $ 2,597,821 $ 61,219 $ 844,631 Realized gains/losses on investments (22,670) 3,091,917 - - Change in unrealized appreciation/depreciation on investments (1,043,169) 1,619,468 - - - -------------------------------------------------------------------------------------------------------------------- Change in net assets from operations (14,694) 7,309,206 61,219 844,631 Dividends to shareholders: From net investment income: Standard shares (1,168,859) (2,770,272) (39,525) (710,661) Institutional shares - - (21,694) (133,970) From net realized gains on investments: Standard shares - - - - - -------------------------------------------------------------------------------------------------------------------- Total dividends (1,168,859) (2,770,272) (61,219) (844,631) Change in net assets from capital transactions (4,751,055) (2,889,480) (13,830,435) (15,276,980) CHANGE IN NET ASSETS $ (5,934,608) $ 1,649,454 $ (13,830,435) $ (15,276,980) - -------------------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of period $ 69,137,481 $ 67,488,027 $ 115,533,193 $ 130,810,173 End of period $ 63,202,873 $ 69,137,481 $ 101,702,758 $ 115,533,193 - -------------------------------------------------------------------------------------------------------------------- Accumulated net investment income/loss $ (117,714) - - - CAPITAL TRANSACTIONS Standard shares Proceeds from shares issued $ 3,646,649 $ 15,862,291 $ 38,498,860 $ 90,075,370 Dividends reinvested 1,073,616 2,594,958 65,696 742,720 Cost of shares redeemed (9,471,320) (21,346,729) (51,896,590) (100,447,452) - -------------------------------------------------------------------------------------------------------------------- Net change (4,751,055) (2,889,480) (13,332,034) (9,629,362) - -------------------------------------------------------------------------------------------------------------------- Institutional shares Proceeds from shares issued - - $ 4,184,852 $ 3,128,338 Dividends reinvested - - 23,926 144,697 Cost of shares redeemed - - (4,707,179) (8,920,653) - -------------------------------------------------------------------------------------------------------------------- Net change - - (498,401) (5,647,618) - -------------------------------------------------------------------------------------------------------------------- CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (4,751,055) $ (2,889,480) $ (13,830,435) $ (15,276,980) - -------------------------------------------------------------------------------------------------------------------- SHARE TRANSACTIONS Standard shares Issued 363,341 1,597,468 38,498,860 90,075,370 Reinvested 106,970 262,370 65,696 742,730 Redeemed (940,027) (2,151,369) (51,896,590) (100,447,452) - -------------------------------------------------------------------------------------------------------------------- Net change (469,716) (291,531) (13,332,034) (9,629,352) - -------------------------------------------------------------------------------------------------------------------- Institutional shares Issued - - 4,184,852 3,128,339 Reinvested - - 23,926 144,697 Redeemed - - (4,707,179) (8,920,653) - -------------------------------------------------------------------------------------------------------------------- Net change - - (498,401) (5,647,617) - -------------------------------------------------------------------------------------------------------------------- CHANGE IN SHARES FROM SHARE TRANSACTIONS (469,716) (291,531) (13,830,435) (15,276,969) PRIME MONEY MARKET FUND - ------------------------------------------------------------------------------ FOR THE PERIOD 07/01/03(1) - 12/31/03 (UNAUDITED) - ------------------------------------------------------------------------------ OPERATIONS Net investment income $ 855,722 Realized gains/losses on investments - Change in unrealized appreciation/depreciation on investments - - ------------------------------------------------------------------------- Change in net assets from operations 855,722 Dividends to shareholders: From net investment income: Standard shares (855,722) Institutional shares - From net realized gains on investments: Standard shares - - ------------------------------------------------------------------------- Total dividends (855,722) Change in net assets from capital transactions 166,965,687 CHANGE IN NET ASSETS $ 166,965,687 - ------------------------------------------------------------------------- NET ASSETS Beginning of period $ - End of period $ 166,965,687 - ------------------------------------------------------------------------- Accumulated net investment income/loss - CAPITAL TRANSACTIONS Standard shares Proceeds from shares issued $ 237,468,863 Dividends reinvested - Cost of shares redeemed (70,503,176) - ------------------------------------------------------------------------- Net change 166,965,687 - ------------------------------------------------------------------------- Institutional shares Proceeds from shares issued - Dividends reinvested - Cost of shares redeemed - - ------------------------------------------------------------------------- Net change - - ------------------------------------------------------------------------- CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 166,965,687 - ------------------------------------------------------------------------- SHARE TRANSACTIONS Standard shares Issued 237,468,863 Reinvested - Redeemed (70,503,176) - ------------------------------------------------------------------------- Net change 166,965,687 - ------------------------------------------------------------------------- Institutional shares Issued - Reinvested - Redeemed - - ------------------------------------------------------------------------- Net change - - ------------------------------------------------------------------------- CHANGE IN SHARES FROM SHARE TRANSACTIONS 166,965,687
41 FINANCIAL HIGHLIGHTS
DIVIDENDS TO SELECTED PER SHARE DATA INVESTMENT ACTIVITIES SHAREHOLDERS - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSET NET REALIZED VALUE, NET AND UNREALIZED TOTAL FROM FROM NET BEGINNING INVESTMENT REDEMPTION GAINS/LOSSES INVESTMENT INVESTMENT OF PERIOD INCOME/LOSS FEE ON INVESTMENTS OPERATIONS INCOME - ----------------------------------------------------------------------------------------------------------------------------------- 300 FUND STANDARD SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Period ended December 31, 2003(1) * $ 10.00 0.01 - 0.97 0.98 (0.01) - ----------------------------------------------------------------------------------------------------------------------------------- CORE GROWTH FUND STANDARD SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 16.44 (0.07) - 2.10 2.03 - Year ended June 30, 2003 16.73 (0.04) - (0.25) (0.29) - Year ended June 30, 2002 22.12 (0.09) - (5.30) (5.39) - Year ended June 30, 2001 32.59 (0.16) - (9.01) (9.17) - Year ended June 30, 2000 30.52 (0.22) - 4.08 3.86 - Year ended June 30, 1999 23.46 (0.15) - 7.52 7.37 - INSTITUTIONAL SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 13.52 - - 1.72 1.72 - Year ended June 30, 2003 13.66 0.05 - (0.19) (0.14) - Year ended June 30, 2002 17.94 0.04 - (4.32) (4.28) - Year ended June 30, 2001 26.59 0.01 - (7.36) (7.35) - Year ended June 30, 2000 25.02 - - 3.36 3.36 - Year ended June 30, 1999 19.13 0.01 - 6.19 6.20 - ADMINISTRATIVE SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 16.68 (0.03) - 2.13 2.10 - Year ended June 30, 2003 16.91 0.01 - (0.24) (0.23) - Year ended June 30, 2002 22.27 (0.01) - (5.35) (5.36) - Year ended June 30, 2001 32.66 (0.03)(4) - (9.06) (9.09) - Period ended June 30, 2000(5) 32.09 (0.01) - 0.58 0.57 - - ----------------------------------------------------------------------------------------------------------------------------------- EMERGING GROWTH FUND STANDARD SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 10.96 (0.09) - 1.93 1.84 - Year ended June 30, 2003 11.82 (0.17) - (0.69) (0.86) - Year ended June 30, 2002 15.79 (0.20) - (3.77) (3.97) - Year ended June 30, 2001 33.48 (0.21) - (11.41) (11.62) - Year ended June 30, 2000 21.76 (0.30)(4) - 16.58 16.28 - Year ended June 30, 1999 17.55 (0.19) - 6.19 6.00 - INSTITUTIONAL SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 11.23 (0.08) - 2.00 1.92 - Year ended June 30, 2003 12.02 (0.10) - (0.69) (0.79) - Year ended June 30, 2002 15.96 (0.11)(4) - (3.83) (3.94) - Year ended June 30, 2001 33.61 (0.12) - (11.46) (11.58) - Period ended June 30, 2000 (6) 25.67 (0.11) - 12.61 12.50 - ADMINISTRATIVE SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 11.11 (0.06) - 1.94 1.88 - Year ended June 30, 2003 11.92 (0.10) - (0.71) (0.81) - Year ended June 30, 2002 15.87 (0.13) - (3.82) (3.95) - Year ended June 30, 2001 33.57 (0.17)(4) - (11.46) (11.63) - Period ended June 30, 2000(5) 28.70 (0.10)(4) - 4.97 4.87 -
(1) For the period August 29, 2003, commencement of operations, to December 31, 2003. (2) Not annualized. (3) Annualized. * Unaudited. See Financial Notes 42
DIVIDENDS TO SELECTED PER SHARE DATA SHAREHOLDERS - ---------------------------------------------------------------------------------------------------------------- FROM NET ASSET NET TOTAL VALUE, TOTAL REALIZED DIVIDENDS TO END RETURN GAINS SHAREHOLDERS OF PERIOD (%) - ---------------------------------------------------------------------------------------------------------------- 300 FUND STANDARD SHARES - ---------------------------------------------------------------------------------------------------------------- Period ended December 31, 2003(1) * - (0.01) $ 10.97 9.81(2) - ---------------------------------------------------------------------------------------------------------------- CORE GROWTH FUND STANDARD SHARES - ---------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 18.47 12.35(2) Year ended June 30, 2003 - - 16.44 (1.73) Year ended June 30, 2002 - - 16.73 (24.37) Year ended June 30, 2001 (1.30) (1.30) 22.12 (28.42) Year ended June 30, 2000 (1.79) (1.79) 32.59 12.82 Year ended June 30, 1999 (0.31) (0.31) 30.52 31.58 INSTITUTIONAL SHARES - ---------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 15.24 12.81(2) Year ended June 30, 2003 - - 13.52 (1.02) Year ended June 30, 2002 - - 13.66 (23.86) Year ended June 30, 2001 (1.30) (1.30) 17.94 (27.98) Year ended June 30, 2000 (1.79) (1.79) 26.59 13.67 Year ended June 30, 1999 (0.31) (0.31) 25.02 32.62 ADMINISTRATIVE SHARES - ---------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 18.78 12.59(2) Year ended June 30, 2003 - - 16.68 (1.36) Year ended June 30, 2002 - - 16.91 (24.07) Year ended June 30, 2001 (1.30) (1.30) 22.27 (28.11) Period ended June 30, 2000(5) - - 32.66 1.78(2) - ---------------------------------------------------------------------------------------------------------------- EMERGING GROWTH FUND STANDARD SHARES - ---------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 12.80 16.79(2) Year ended June 30, 2003 - - 10.96 (7.28) Year ended June 30, 2002 - - 11.82 (25.14) Year ended June 30, 2001 (6.07) (6.07) 15.79 (37.52) Year ended June 30, 2000 (4.56) (4.56) 33.48 82.19 Year ended June 30, 1999 (1.79) (1.79) 21.76 36.04 INSTITUTIONAL SHARES - ---------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 13.15 17.10(2) Year ended June 30, 2003 - - 11.23 (6.57) Year ended June 30, 2002 - - 12.02 (24.69) Year ended June 30, 2001 (6.07) (6.07) 15.96 (37.21) Period ended June 30, 2000 (6) (4.56) (4.56) 33.61 55.02(2) ADMINISTRATIVE SHARES - ---------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 12.99 16.92(2) Year ended June 30, 2003 - - 11.11 (6.80) Year ended June 30, 2002 - - 11.92 (24.89) Year ended June 30, 2001 (6.07) (6.07) 15.87 (37.43) Period ended June 30, 2000(5) - - 33.57 16.97(2) SELECTED PER SHARE DATA RATIOS AND SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------------------------------------------------------- NET RATIO OF RATIO OF NET RATIO OF ASSETS, EXPENSES TO INVESTMENT EXPENSES TO END OF AVERAGE NET INCOME/LOSS AVERAGE NET PORTFOLIO PERIOD ASSETS, NET OF TO AVERAGE NET ASSETS, PRIOR TO OF PERIOD ($ X 1,000) REIMBURSEMENT (%) ASSETS (%) REIMBURSEMENT (%) RATE (%) - ----------------------------------------------------------------------------------------------------------------------------------- 300 FUND STANDARD SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Period ended December 31, 2003(1) * $ 4,446 0.90(3) 0.42(3) 2.82(3) 0.13 - ----------------------------------------------------------------------------------------------------------------------------------- CORE GROWTH FUND STANDARD SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 311,486 1.51(3) (0.73)(3) 1.51(3) 147.67 Year ended June 30, 2003 285,339 1.37 (0.28) 1.53 183.75 Year ended June 30, 2002 326,793 1.34 (0.43) 1.44 76.40 Year ended June 30, 2001 472,779 1.34 (0.62) 1.42 44.95 Year ended June 30, 2000 699,399 1.49 (0.75) 1.52 20.04 Year ended June 30, 1999 578,286 1.58 (0.68) 1.58 18.04 INSTITUTIONAL SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 62,989 0.78(3) 0.02(3) 0.78(3) 147.67 Year ended June 30, 2003 63,571 0.69 0.36 0.76 183.75 Year ended June 30, 2002 85,140 0.68 0.23 0.73 76.40 Year ended June 30, 2001 123,912 0.68 0.04 0.74 44.95 Year ended June 30, 2000 180,779 0.74 0.00 0.74 20.04 Year ended June 30, 1999 98,705 0.83 0.05 0.83 18.04 ADMINISTRATIVE SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 2,702 1.09(3) (0.30)(3) 1.09(3) 147.67 Year ended June 30, 2003 2,426 1.00 0.09 1.06 183.75 Year ended June 30, 2002 2,029 0.94 (0.05) 1.01 76.40 Year ended June 30, 2001 1,964 0.94 (0.14) 5.63 44.95 Period ended June 30, 2000(5) 21 0.99(3) (0.27)(3) 101.59(3) 20.04 - ----------------------------------------------------------------------------------------------------------------------------------- EMERGING GROWTH FUND STANDARD SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 176,336 1.93(3) (1.49)(3) 1.93(3) 64.94 Year ended June 30, 2003 157,911 1.95 (1.56) 1.97 315.89 Year ended June 30, 2002 190,812 1.80 (1.39) 1.86 202.57 Year ended June 30, 2001 283,760 1.68 (1.09) 1.75 136.63 Year ended June 30, 2000 386,670 1.69 (1.09) 1.75 159.95 Year ended June 30, 1999 136,137 1.82 (1.20) 1.83 208.49 INSTITUTIONAL SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 3,716 1.29(3) (0.87)(3) 1.29(3) 64.94 Year ended June 30, 2003 5,379 1.25 (0.86) 1.28 315.89 Year ended June 30, 2002 6,428 1.20 (0.78) 1.26 202.57 Year ended June 30, 2001 19,676 1.30 (0.69) 1.36 136.63 Period ended June 30, 2000 (6) 16,284 1.24(3) (0.61)(3) 1.31(3) 159.95 ADMINISTRATIVE SHARES - ----------------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 11,786 1.58(3) (1.13)(3) 1.58(3) 64.94 Year ended June 30, 2003 8,561 1.51 (1.13) 1.54 315.89 Year ended June 30, 2002 8,444 1.47 (1.07) 1.53 202.57 Year ended June 30, 2001 9,497 1.55 (0.96) 2.06 136.63 Period ended June 30, 2000(5) 8 1.55(3) (0.90)(3) 158.14(3) 159.95
(4) Based on average shares outstanding. (5) For the period February 4, 2000, commencement of operations, to June 30, 2000. (6) For the period November 1, 1999, commencement of operations, to June 30, 2000. 43
DIVIDENDS SELECTED PER SHARE DATA INVESTMENT ACTIVITIES TO SHAREHOLDERS - ------------------------------------------------------------------------------------------------------------------------- NET REALIZED NET ASSET AND UNREALIZED VALUE, NET GAINS/LOSSES ON TOTAL FROM FROM NET BEGINNING INVESTMENT REDEMPTION INVESTMENTS AND INVESTMENT INVESTMENT OF PERIOD INCOME/LOSS FEE FOREIGN CURRENCIES OPERATIONS INCOME - ------------------------------------------------------------------------------------------------------------------------- SMALL CAP CORE GROWTH FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 8.67 (0.06) - 1.97 1.91 - Year ended June 30, 2003 9.18 (0.09) - (0.42) (0.51) - Year ended June 30, 2002 9.52 (0.08) - (0.26) (0.34) - Year ended June 30, 2001 11.23 (0.05) - (1.64) (1.69) - Period ended June 30, 2000(3) 10.00 - - 1.23 1.23 - - ------------------------------------------------------------------------------------------------------------------------- VALUE FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 8.64 (0.01) - 1.45 1.44 - Year ended June 30, 2003 8.74 (0.05) - (0.05) (0.10) - One month period ended June 30, 2002(4) 10.21 (0.01) - (1.46) (1.47) - Year ended May 31, 2002 15.29 (0.08) - (3.57) (3.65) - Year ended May 31, 2001 14.58 (0.07) - 2.70 2.63 - Year ended May 31, 2000 14.03 (0.08) - 2.05 1.97 - Year ended May 31, 1999 12.98 (0.08) - 1.95 1.87 - - ------------------------------------------------------------------------------------------------------------------------- GLOBAL EQUITY FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 13.39 (0.06)(5) - 2.18 2.12 - Year ended June 30, 2003 14.22 (0.03)(5) 0.02 (0.82) (0.83) - Year ended June 30, 2002 18.31 (0.11)(5) 0.01 (3.99) (4.09) - Year ended June 30, 2001 29.99 (0.16) - (9.61) (9.77) - Year ended June 30, 2000 20.22 (0.22)(5) - 10.94 10.72 - Year ended June 30, 1999 16.95 (0.12) - 3.86 3.74 - - ------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL SHARES - ------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 13.65 0.01(5) - 2.21 2.22 - Year ended June 30, 2003 14.40 0.05(5) 0.02 (0.82) (0.75) - Year ended June 30, 2002 18.46 (0.01)(5) 0.01 (4.06) (4.06) - Year ended June 30, 2001 30.08 (0.05)(5) - (9.66) (9.71) - Period ended June 30, 2000(6) 23.45 (0.05)(5) - 7.63 7.58 - - ------------------------------------------------------------------------------------------------------------------------- ADMINISTRATIVE SHARES - ------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 13.51 (0.01)(5) - 2.18 2.17 - Year ended June 30, 2003 14.30 0.01(5) 0.02 (0.82) (0.79) - Year ended June 30, 2002 18.38 (0.06)(5) 0.01 (4.03) (4.08) - Year ended June 30, 2001 30.02 (0.11)(5) - (9.62) (9.73) - Period ended June 30, 2000(7) 33.45 (0.06) - (3.37) (3.43) - - ------------------------------------------------------------------------------------------------------------------------- BALANCED FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 10.47 0.02 - 1.08 1.10 (0.02) Period ended June 30, 2003(8) 10.00 0.02 - 0.47 0.49 (0.02) - ------------------------------------------------------------------------------------------------------------------------- ULTRA SHORT BOND FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 10.06 0.09 - (0.08) 0.01 (0.10) Period ended June 30, 2003(9) 10.00 0.14(5) - 0.07 0.21 (0.15)
(1) Not annualized. (2) Annualized. (3) Less than $0.005 per share. (4) For the period July 1, 2003, commencement of operations, to December 31, 2003. * Unaudited. See Financial Notes 44
RATIOS AND SELECTED PER SHARE DATA DIVIDENDS TO SHAREHOLDERS SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------------------- NET FROM NET ASSET ASSETS, NET TOTAL VALUE, TOTAL END OF REALIZED DIVIDENDS TO END RETURN PERIOD GAINS SHAREHOLDERS OF PERIOD (%) ($ X 1,000) - -------------------------------------------------------------------------------------------------------- SMALL CAP CORE GROWTH FUND STANDARD SHARES - -------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 10.58 22.03(1) $ 25,499 Year ended June 30, 2003 - - 8.67 (5.56) 17,821 Year ended June 30, 2002 - - 9.18 (3.57) 18,459 Year ended June 30, 2001 (0.02) (0.02) 9.52 (15.08) 15,503 Period ended June 30, 2000(3) - - 11.23 12.30(1) 8,397 - -------------------------------------------------------------------------------------------------------- VALUE FUND STANDARD SHARES - -------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 10.08 16.67(1) $ 20,513 Year ended June 30, 2003 - - 8.64 (1.14) 16,226 One month period ended June 30, 2002(4) - - 8.74 (14.40)(1) 21,060 Year ended May 31, 2002 (1.43) (1.43) 10.21 (25.58) 24,981 Year ended May 31, 2001 (1.92) (1.92) 15.29 20.71 14,378 Year ended May 31, 2000 (1.42) (1.42) 14.58 14.36 8,726 Year ended May 31, 1999 (0.82) (0.82) 14.03 15.43 4,611 - -------------------------------------------------------------------------------------------------------- GLOBAL EQUITY FUND STANDARD SHARES - -------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 15.51 15.83(1) $ 111,472 Year ended June 30, 2003 - - 13.39 (5.84)(1) 101,846 Year ended June 30, 2002 - - 14.22 (22.34) 135,881 Year ended June 30, 2001 (1.91) (1.91) 18.31 (33.69) 236,080 Year ended June 30, 2000 (0.95) (0.95) 29.99 53.27 354,818 Year ended June 30, 1999 (0.47) (0.47) 20.22 22.34 90,549 - -------------------------------------------------------------------------------------------------------- INSTITUTIONAL SHARES - -------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 15.87 16.26(1) $ 7,549 Year ended June 30, 2003 - - 13.65 (5.21) 6,688 Year ended June 30, 2002 - - 14.40 (21.99) 9,531 Year ended June 30, 2001 (1.91) (1.91) 18.46 (33.35) 16,475 Period ended June 30, 2000(6) (0.95) (0.95) 30.08 32.55(1) 12,544 - -------------------------------------------------------------------------------------------------------- ADMINISTRATIVE SHARES - -------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - - $ 15.68 16.06(1) $ 2,555 Year ended June 30, 2003 - - 13.51 (5.52) 2,059 Year ended June 30, 2002 - - 14.30 (22.20) 2,207 Year ended June 30, 2001 (1.91) (1.91) 18.38 (33.52) 1,748 Period ended June 30, 2000(7) - - 30.02 (10.25)(1) 1 - -------------------------------------------------------------------------------------------------------- BALANCED FUND - -------------------------------------------------------------------------------------------------------- STANDARD SHARES Six months ended December 31, 2003* (0.24) (0.26) $ 11.31 10.53(1) $ 1,555 Period ended June 30, 2003(8) - (0.02) 10.47 4.87(1) 1,061 - -------------------------------------------------------------------------------------------------------- ULTRA SHORT BOND FUND STANDARD SHARES - -------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - (0.10) $ 9.97 0.07(1) $ 9,769 Period ended June 30, 2003(9) - (0.15) 10.06 2.12(1) 9,252 SELECTED PER SHARE DATA RATIOS AND SUPPLEMENTAL DATA --------------------------------------------------------------- RATIO OF RATIO OF NET RATIO OF EXPENSES TO INVESTMENT EXPENSES TO AVERAGE NET INCOME/LOSS AVERAGE NET PORTFOLIO ASSETS, NET OF TO AVERAGE NET ASSETS, PRIOR TO TURNOVER REIMBURSEMENT (%) ASSETS (%) REIMBURSEMENT (%) RATE (%) - ------------------------------------------------------------------------------------------------------- SMALL CAP CORE GROWTH FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* 1.52(2) (1.37)(2) 1.52(2) 142.67 Year ended June 30, 2003 1.45 (1.12) 1.58 349.79 Year ended June 30, 2002 1.34 (0.93) 1.40 294.26 Year ended June 30, 2001 1.34 (0.57) 3.20 146.62 Period ended June 30, 2000(3) 1.49(2) 0.00(2) 5.98(2) 20.16 - ------------------------------------------------------------------------------------------------------- VALUE FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* 1.79(2) (0.14)(2) 1.79(2) 86.81 Year ended June 30, 2003 1.90 (0.62) 1.90 209.72 One month period ended June 30, 2002(4) 1.95(2) (1.33)(2) 2.05(2) 5.87 Year ended May 31, 2002 1.95 (1.04) 2.54 34.77 Year ended May 31, 2001 1.95 (0.65) 4.63 62.55 Year ended May 31, 2000 1.95 (0.68) 7.11 72.32 Year ended May 31, 1999 1.95 (0.79) 10.32 73.70 - ------------------------------------------------------------------------------------------------------- GLOBAL EQUITY FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* 1.96(2) (0.85)(2) 1.96(2) 32.30 Year ended June 30, 2003 1.91 (0.26) 1.91 42.05 Year ended June 30, 2002 1.84 (0.66) 1.84 132.82 Year ended June 30, 2001 1.82 (0.71) 1.82 151.95 Year ended June 30, 2000 1.82 (0.79) 1.83 120.69 Year ended June 30, 1999 1.96 (0.88) 1.96 64.07 - ------------------------------------------------------------------------------------------------------- INSTITUTIONAL SHARES - ------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* 1.33(2) 0.18(2) 1.33(2) 32.30 Year ended June 30, 2003 1.26 0.42 1.26 42.05 Year ended June 30, 2002 1.27 (0.05) 1.27 132.82 Year ended June 30, 2001 1.39 (0.23) 1.42 151.95 Period ended June 30, 2000(6) 1.39(2) (0.25)(2) 1.43(2) 120.69 - ------------------------------------------------------------------------------------------------------- ADMINISTRATIVE SHARES - ------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* 1.66(2) (0.18)(2) 1.66(2) 32.30 Year ended June 30, 2003 1.59 0.11 1.59 42.05 Year ended June 30, 2002 1.64 (0.39) 1.64 132.82 Year ended June 30, 2001 1.68 (0.48) 3.18 151.95 Period ended June 30, 2000(7) 1.68(2) (0.48)(2) 296.20(2) 120.69 - ------------------------------------------------------------------------------------------------------- BALANCED FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* 1.30(2) 0.28(2) 5.92(2) 83.50 Period ended June 30, 2003(8) 1.30(2) 0.41(2) 16.73(2) 140.42 - ------------------------------------------------------------------------------------------------------- ULTRA SHORT BOND FUND STANDARD SHARES - ------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* 0.03(2) 1.78(2) 1.49(2) 52.31 Period ended June 30, 2003(9) 0.00(2) 2.29(2) 2.10(2) 56.04
(6) For the period November 1, 1999, commencement of operations, to June 30, 2000. (7) For the period February 4, 2000, commencement of operations, to June 30, 2000. (8) For the period December 20, 2002, commencement of operations, to June 30, 2003. (9) For the period November 21, 2002, commencement of operations, to June 30, 2003. 45
DIVIDENDS SELECTED PER SHARE DATA INVESTMENT ACTIVITIES TO SHAREHOLDERS - ----------------------------------------------------------------------------------------------------------------------- NET ASSET NET REALIZED VALUE, NET AND UNREALIZED TOTAL FROM FROM NET BEGINNING INVESTMENT REDEMPTION GAINS/LOSSES INVESTMENT INVESTMENT OF PERIOD INCOME/LOSS FEE ON INVESTMENTS OPERATIONS INCOME - ----------------------------------------------------------------------------------------------------------------------- INCOME FUND STANDARD SHARES - ----------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 10.28 0.16 - (0.15) 0.01 (0.18) Year ended June 30, 2003 9.62 0.37 - 0.69 1.06 (0.40) Year ended June 30, 2002 10.28 0.58 - (0.66) (0.08) (0.58) Year ended June 30, 2001 10.20 0.68 - 0.10 0.78 (0.70) Year ended June 30, 2000 10.51 0.65 - (0.32) 0.33 (0.63) Year ended June 30, 1999 11.03 0.59 - (0.50) 0.09 (0.59) - ----------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUND STANDARD SHARES - ----------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 1.00 -(3) - - -(3) -(3) Year ended June 30, 2003 1.00 0.01 - - 0.01 (0.01) Year ended June 30, 2002 1.00 0.02 - - 0.02 (0.02) Year ended June 30, 2001 1.00 0.05 - - 0.05 (0.05) Year ended June 30, 2000 1.00 0.05 - - 0.05 (0.05) Year ended June 30, 1999 1.00 0.04 - - 0.04 (0.04) - ----------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL SHARES - ----------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* $ 1.00 -(3) - - -(3) -(3) Year ended June 30, 2003 1.00 0.01 - - 0.01 (0.01) Year ended June 30, 2002 1.00 0.02 - - 0.02 (0.02) Year ended June 30, 2001 1.00 0.05 - - 0.05 (0.05) Year ended June 30, 2000 1.00 0.05 - - 0.05 (0.05) Year ended June 30, 1999 1.00 0.05 - - 0.05 (0.05) - ----------------------------------------------------------------------------------------------------------------------- PRIME MONEY MARKET FUND STANDARD SHARES - ----------------------------------------------------------------------------------------------------------------------- Period ended December 31, 2003(4)* $ 1.00 0.01 - - 0.01 (0.01) - -----------------------------------------------------------------------------------------------------------------------
(1) Not annualized. (2) Annualized. (3) Less than $0.005 per share. (4) For the period July 1, 2003, commencement of operations, to December 31, 2003. * Unaudited. 46
SELECTED PER SHARE DATA DIVIDENDS TO SHAREHOLDERS RATIOS AND SUPPLEMENTAL DATA - --------------------------------------------------------------------------------------------------------------------- NET RATIO OF FROM NET ASSET ASSETS, EXPENSES TO NET TOTAL VALUE, TOTAL END OF AVERAGE NET REALIZED DIVIDENDS TO END RETURN PERIOD ASSETS, NET OF GAINS SHAREHOLDERS OF PERIOD (%) ($ X 1,000) REIMBURSEMENT (%) - --------------------------------------------------------------------------------------------------------------------- INCOME FUND STANDARD SHARES - --------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - (0.18) $ 10.11 0.12(1) $ 63,203 1.43(2) Year ended June 30, 2003 - (0.40) 10.28 11.28 69,137 1.37 Year ended June 30, 2002 - (0.58) 9.62 (0.87) 67,488 1.38 Year ended June 30, 2001 -(3) (0.70) 10.28 7.87 71,639 1.40 Year ended June 30, 2000 (0.01) (0.64) 10.20 3.35 61,836 1.45 Year ended June 30, 1999 (0.02) (0.61) 10.51 0.78 62,837 1.45 - --------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUND STANDARD SHARES - --------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - -(3) $ 1.00 0.03(1) $ 91,309 1.00(2) Year ended June 30, 2003 - (0.01) 1.00 0.65 104,641 0.93 Year ended June 30, 2002 - (0.02) 1.00 1.71 114,271 0.92 Year ended June 30, 2001 - (0.05) 1.00 5.23 117,211 0.89 Year ended June 30, 2000 - (0.05) 1.00 4.67 112,700 1.17 Year ended June 30, 1999 - (0.04) 1.00 4.07 105,740 1.19 - -------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL SHARES - --------------------------------------------------------------------------------------------------------------------- Six months ended December 31, 2003* - -(3) $ 1.00 0.20(1) $ 10,393 0.67(2) Year ended June 30, 2003 - (0.01) 1.00 0.95 10,892 0.63 Year ended June 30, 2002 - (0.02) 1.00 1.97 16,539 0.67 Year ended June 30, 2001 - (0.05) 1.00 5.43 27,475 0.70 Year ended June 30, 2000 - (0.05) 1.00 5.04 23,370 0.81 Year ended June 30, 1999 - (0.05) 1.00 4.58 22,464 0.70 - --------------------------------------------------------------------------------------------------------------------- PRIME MONEY MARKET FUND STANDARD SHARES - --------------------------------------------------------------------------------------------------------------------- Period ended December 31, 2003(4)* - (0.01) $ 1.00 0.55(1) $ 166,966 0.00(2) - --------------------------------------------------------------------------------------------------------------------- SELECTED PER SHARE DATA 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 (%) - ------------------------------------------------------------------------------------- INCOME FUND STANDARD SHARES - ------------------------------------------------------------------------------------- Six months ended December 31, 2003* 3.16(2) 1.43(2) 26.41 Year ended June 30, 2003 3.80 1.37 195.73 Year ended June 30, 2002 5.77 1.38 54.05 Year ended June 30, 2001 6.55 1.48 60.53 Year ended June 30, 2000 6.34 1.47 52.96 Year ended June 30, 1999 5.50 1.49 44.07 - ------------------------------------------------------------------------------------- MONEY MARKET FUND STANDARD SHARES - ------------------------------------------------------------------------------------- Six months ended December 31, 2003* 0.08(2) 1.00(2) NA Year ended June 30, 2003 0.65 0.93 NA Year ended June 30, 2002 1.72 0.92 NA Year ended June 30, 2001 5.08 0.89 NA Year ended June 30, 2000 4.59 1.18 NA Year ended June 30, 1999 4.00 1.24 NA - ------------------------------------------------------------------------------------- INSTITUTIONAL SHARES - ------------------------------------------------------------------------------------- Six months ended December 31, 2003* 0.41(2) 0.67(2) NA Year ended June 30, 2003 0.98 0.63 NA Year ended June 30, 2002 1.95 0.67 NA Year ended June 30, 2001 5.22 0.70 NA Year ended June 30, 2000 4.93 0.82 NA Year ended June 30, 1999 4.47 0.70 NA - ------------------------------------------------------------------------------------- PRIME MONEY MARKET FUND STANDARD SHARES Period ended December 31, 2003(4) * 1.10(2) 0.30(2) NA - -------------------------------------------------------------------------------------
47 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 FUND SHORT NAME - ----------------------------------------------------------------------------------------------------------------------------- CITIZENS 300 FUND 300 Fund CITIZENS BALANCED FUND Balanced Fund CITIZENS CORE GROWTH FUND Core Growth Fund CITIZENS ULTRA SHORT BOND FUND Ultra Short Bond Fund CITIZENS EMERGING GROWTH FUND Emerging Growth Fund CITIZENS INCOME FUND Income Fund CITIZENS SMALL CAP CORE GROWTH FUND Small Cap Core Growth Fund CITIZENS MONEY MARKET FUND Money Market Fund CITIZENS VALUE FUND Value Fund CITIZENS PRIME MONEY MARKET FUND Prime Money Market Fund CITIZENS GLOBAL EQUITY FUND Global Equity Fund
The funds are authorized to issue an unlimited number of shares of beneficial interest with no par value. The Core Growth Fund, Emerging Growth Fund and Global Equity Fund currently offer three classes of shares: Standard shares, Institutional shares and Administrative shares. The Money Market Fund offers two classes of shares: Standard shares and Institutional shares. The 300 Fund, Small Cap Core Growth Fund, Value Fund, Balanced Fund, Ultra Short Bond Fund and Income Fund offer one class of shares: Standard shares. Prime Money Market Fund offers one class of 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. CITIZENS MONEY MARKET EXCHANGE On July 2, 2003, the Money Market Fund transferred $113,739,102 of securities and cash to the Prime Money Market Fund in exchange for 113,739,102 shares of the Prime Money Market Fund. During the remainder of the period covered by this report, the Money Market Fund invested substantially all of its investable assets in the Prime Money Market Fund, an open-end management investment company that has the same investment objective as the Money Market Fund. The percentage of the Prime Money Market Fund owned by the Money Market Fund as of December 31, 2003 was approximately 59.9%. As of December 31, 2003, the Money Market Fund invested approximately 98.3% of its investable assets in the Prime Money Market Fund. The financial statements of the Prime Money Market Fund, including Portfolio Holdings, are included elsewhere in this report and should be read in conjunction with the financial statements of the Money Market Fund. CITIZENS INTERNATIONAL GROWTH FUND REORGANIZATION Under a plan of reorganization adopted by the Trust, all of the assets and liabilities of the Citizens International Growth Fund were transferred to the Standard shares of the Global Equity Fund. The reorganization, which qualified as a tax-free exchange for federal income tax purposes, was completed on December 19, 2003, following approval by shareholders at a special shareholder meeting. Of the 324,197 shares voted, 266,733 affirmed, 43,590 voted against, and 13,893 abstained. The following is a summary of shares outstanding, net assets, net asset value per share issued, unrealized appreciation/depreciation, and accumulated net realized loss immediately before and after the reorganization: 48 FINANCIAL NOTES UNAUDITED
BEFORE REORGANIZATION AFTER REORGANIZATION ----------------------------------- -------------------- INTERNATIONAL GLOBAL GLOBAL GROWTH FUND EQUITY FUND EQUITY FUND - ---------------------------------------------------------------------------------------------------- Shares 433,044.353 7,637,623.361 7,843,039.517 Net assets $ 3,115,732 $ 116,037,295 $ 119,153,027 Net asset value: Standard shares$ 7.19 $ 15.17 $ 15.17 Institutional shares NA $ 15.52 $ 15.52 Administrative shares NA $ 15.33 $ 15.33 Unrealized appreciation/depreciation $ 511,440 $ 11,275,289 $ 11,786,729 Accumulated net realized loss $ (928,080) $ (135,041,252) $ (135,969,332)
SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. SECURITIES VALUATION Equity securities are valued at the last sale price on the primary exchange on which such securities are traded or on the principal over-the-counter market on which such securities are traded, as of the close of business on the day the securities are valued, or lacking any sales, at the last available bid price for domestic securities and halfway between the bid and ask price for international securities. Equity securities traded on the NASDAQ stock market are valued at the NASDAQ official closing price. Fixed-income investments generally are valued at the bid price for securities. Securities may also be valued on the basis of valuations furnished by a pricing service that uses both dealer-supplied valuations and valuations based upon analysis of market data or other factors if these valuations are believed to more accurately reflect the fair value of such securities. Investments for which market quotations are not readily available are valued at fair value, using procedures determined in good faith by the Board of Trustees. Short-term securities maturing within 60 days and investments of the Prime Money Market Fund are valued at amortized cost, which approximates fair value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant (straight-line) basis to the maturity of the security. Investments in other money market funds are valued at net asset value. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME Changes in holdings of portfolio securities shall be reflected no later than in the first calculation on the first business day following the trade date. 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. 49 FINANCIAL NOTES UNAUDITED FOREIGN CURRENCY CONTRACTS The Global Equity Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contract's terms. The U.S. dollar value of foreign currency contracts is determined using the contractual currency exchange rates established at the time of each trade. REPURCHASE AGREEMENTS The funds may acquire repurchase agreements with an entity that is a member of the Federal Reserve System, collateralized by instruments issued by the U.S. government, its agencies or instrumentalities. The repurchase price generally equals the price paid by a fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying securities. It is the funds' policy to receive collateral securities of which the value, including accrued interest, is at least equal to 102% of the amount to be repaid to the funds under each agreement at its maturity. Collateral subject to repurchase agreements is held by the funds' custodian or another qualified custodian. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral by the funds may be delayed or limited. 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 below minimum balances, redemptions due to shareholder death or disability, or certain omnibus accounts or retirement plans. For the six months ended December 31, 2003, the Global Equity Fund collected $19,870 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 300 Fund, 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, if any, for the Ultra Short Bond Fund, Money Market Fund and Prime Money Market Fund are declared daily and paid monthly. The funds' net realized gains, if any, are distributed to shareholders at least annually. Additional dividends may also be paid to the funds' shareholders to the extent necessary to avoid federal excise tax on certain undistributed income and net realized gains. The amount of dividends from net investment income and net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (i.e., reclassification of market discounts, gain/loss, paydowns, and distributions), such amounts are reclassified to capital; temporary differences do not require reclassification. OFFERING COSTS Expenses incurred in connection with the offering of fund shares (such as drafting of registration statements and agreements) for the 300 Fund, Balanced Fund, Ultra Short Bond Fund and Prime Money Market Fund were paid by the funds and are being amortized over a 12-month period starting with each fund's commencement of operations. 50 FINANCIAL NOTES UNAUDITED FEDERAL INCOME TAXES Each fund is a separate taxable entity for federal tax purposes. Each fund has qualified and intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and distributes substantially all of its taxable net investment income and net realized gains, if any, to its shareholders. FEES AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT MANAGEMENT FEE Citizens Advisers, Inc. (the "Adviser") serves as Adviser to each of the funds. Under the terms of the management contract, the Adviser is paid a fee that is computed daily based on an annual rate for each fund's average daily net assets. Those rates are as follows:
FUND FEE RATE - ------------------------------------------ 300 Fund 0.20% 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% Ultra Short Bond Fund 0.35% Income Fund 0.65% Money Market Fund 0.35%* Prime Money Market Fund 0.25%
*For any period that the Money Market Fund invests its assets in Prime Money Market Fund, the total management fee payable to the Adviser under the management contract with respect to the fund shall not exceed 0.35% per annum of the fund's average net assets minus the fund's allocable share of the management fees paid to the Adviser from Prime Money Market Fund. SSgA Funds Management, Inc. serves as the Sub-Adviser for the Global Equity Fund. For its services, the Sub-Adviser receives a fee computed daily based on an annual rate of the fund's average daily net assets, paid by the Adviser as follows:
FUND FEE RATE - -------------------------------------------------------------------------------------- Global Equity Fund 0.35% of the first $500 million, 0.25% thereafter
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 Prime Money Market Fund and 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 trustees are affiliated, performs administrative duties for the Trust under a separate administrative contract, which provides for the reimbursement of out-of-pocket expenses as well as fees for services rendered. In accordance with the terms of the administrative contract, fees and expenses are accrued daily based on average daily net assets of each fund at the annual rate of 0.15%. For the six months ended December 31, 2003, no fees or expenses were charged to the Prime Money Market Fund. In addition, Citizens Securities, Inc., a wholly owned subsidiary of the Adviser, provides a number of administrative services to the Trust, relating primarily to shareholder services and communications, and is paid an account fee for providing such services and communications for each of the individual funds with the exception of the Core Growth Fund, Standard shares. The Core Growth Fund, Standard shares may be charged a shareholder service fee of up to 0.35% based on the average daily net assets of the class. For the six months ended December 31, 2003, a fee of 0.25% was charged. 51 FINANCIAL NOTES UNAUDITED TRANSFER AGENCY, FUND ACCOUNTING AND CUSTODY BISYS Fund Services Ohio, Inc. provides transfer agency and fund accounting services to the funds pursuant to certain fee arrangements. Transfer agent expenses also include the cost of services rendered by third parties to provide sub-transfer agency services, with the following exception: Citizens Advisers provides transfer agency services for the Prime Money Market Fund. Fifth Third Bank acts as custodian for the funds. Custody expenses may be incurred or offset from fees or credits arising from cash balances maintained on deposit. TRUSTEE FEES Certain officers and Trustees of the Trust are "interested persons," as defined in the 1940 Act, of the Adviser. Currently, each Trustee who is not an "interested person" receives an annual retainer of $12,000 and $1,250 for each day's attendance at a Trustee meeting. The independent trustees have elected a Chair, who receives an additional annual retainer of $5,000; and a Vice Chair, Audit Committee Chair and Social Responsibility Committee Chair, who each receives an additional annual retainer of $2,500. EXPENSE ALLOCATION Expenses directly attributable to a fund are charged to that fund. Expenses not directly attributable to a fund are allocated proportionately among various or all funds within the Trust in relation to the net assets of each fund or on another reasonable basis. Expenses specific to a class are charged to that class. FEE REDUCTIONS AND REIMBURSEMENTS For the six months ended December 31, 2003, the Adviser has voluntarily agreed to limit 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 - ------------------------------------------ 300 FUND 0.90% BALANCED FUND 1.30% ULTRA SHORT BOND FUND 0.10%* PRIME MONEY MARKET FUND 0.00%
*For the period July 1, 2003 to October 27, 2003, the Adviser voluntarily waived all fees and reimbursed all expenses for the Ultra Short Bond Fund. The expense limitations above are voluntary and may be removed by the Adviser at any time. FEES PAID INDIRECTLY During the period, certain funds participated in a directed brokerage program in which the funds utilize recaptured commissions on securities transactions to pay for, in whole or in part, certain expenses of the funds. INVESTMENT TRANSACTIONS The following summarizes purchases and sales of investment securities, other than short-term investments, by fund for the six months ended December 31, 2003:
FUND PURCHASES SALES - ------------------------------------------------------------- 300 FUND $ 1,784,609 $ 16,500 CORE GROWTH FUND 536,075,244 545,427,060 EMERGING GROWTH FUND 118,411,253 130,008,527 SMALL CAP CORE GROWTH FUND 34,190,233 30,951,039 VALUE FUND 17,005,391 15,465,871 GLOBAL EQUITY FUND $ 36,254,609 $ 42,732,068 BALANCED FUND 1,322,244 991,984 ULTRA SHORT BOND FUND 5,576,161 4,163,361 INCOME FUND 16,511,577 24,788,233
SUBSEQUENT EVENT On February 16, 2004, the Trustees approved the withdrawal of the assets of the Money Market Fund from the Prime Money Market Fund. 52 FINANCIAL NOTES UNAUDITED SHAREHOLDER SERVICES AT CITIZENS FUNDS, we want our investors to know how much we value their business. That's why we offer a comprehensive range of services that includes everything from attentive telephone representatives to an informative Web site. EXCHANGES BETWEEN CITIZENS FUNDS* You can move your money from any one of our funds to another. RETIREMENT INVESTING We offer investors the opportunity to invest in a variety of IRAs, including Traditional, Roth and Rollover. Citizens Funds are also available for 401(k), 403(b), SEP and SIMPLE retirement plans. AUTOMATIC INVESTMENT PLAN Invest automatically on a monthly or quarterly basis with payroll deduction or electronic transfer from your bank. UNPARALLELED CUSTOMER SERVICE Our representatives are well-trained professionals whose goal is to satisfy most requests during the first phone call. Representatives are available from 9 AM to 6 PM (ET) Monday - Friday at 800.223.7010. www.citizensfunds.com Our Web site offers daily fund prices and performance, fund and manager profiles, fund prospectuses and applications, shareholder activism updates, online account access and transactions and much more. INTELLIGENT COMMUNICATIONS Citizens Funds was a pioneer of the plain English prospectus well before it became the standard for the rest of the mutual fund industry. We try to bring that same spirit of innovation, plain-speak and respect for our shareholders to all our communications. PROXY VOTING A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800.223.7010, on our Web site, and on the SEC's Web site at http://www.sec.gov. *Citizens Global Equity Fund charges a redemption fee of 2% on shares redeemed or exchanged within 60 days of purchase. [CITIZENS FUNDS (R) LOGO] TRUSTEES Judy Belk Walter D. Bristol, Jr. Sophia Collier Jeannie H. Diefenderfer Pablo S. Eisenberg Orlando Hernandez Mitchell A. Johnson Martha S. Pope DISTRIBUTOR Citizens Securities, Inc. 230 Commerce Way Portsmouth, NH 03801 800.223.7010 603.436.5152 MANAGER Citizens Advisers, Inc. 230 Commerce Way Portsmouth, NH 03801 800.223.7010 603.436.5152 CUSTODIAN Fifth Third Bank Cincinnati, OH 45263 TRANSFER AND ACCOUNTING AGENT BISYS Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219 LEGAL COUNSEL Bingham McCutchen LLP Boston, MA 02110 INDEPENDENT AUDITORS PricewaterhouseCoopers LLP Columbus, OH 43215 FUNDAMENTALLY STRONG. SOCIALLY RESPONSIBLE. 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 visit www.citizensfunds.com or call 800.223.7010 for a prospectus that contains complete details of fees and expenses and should be read carefully before investing. (C) 2004 Citizens Advisers, Inc. [RECYCLE LOGO] Printed on chemical-free 100% post-consumer paper with soy-based inks. SAR 2/04 ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not Applicable. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not Applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not Applicable. ITEM 10. 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 affectively to ensure that information required to be disclosed by the registrant on Form N-CSR is (i) accumulated and communicated to the investment company's management, including its certifying officers, to allow timely decisions 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 (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a)(1) Not applicable at this time. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2). Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (b) A separate or combined certification for each principal executive officer and principal officer of the registrant as required by Rule 30a-2(b) under the Act of 1940. Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. 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: March 08, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Sophia Collier ------------------- Sophia Collier President Date: March 08, 2004 By: /s/ Sean P. Driscoll ------------------- Sean P. Driscoll Treasurer Date: March 08, 2004 EX-99.302CERT 3 a2129325zex-99_302cert.txt EXHIBIT 99.302 CERT EXHIBIT 11(a)(2) CERTIFICATION 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) 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) 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 (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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, based upon the most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies 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. Date: March 08, 2004 /s/ Sophia Collier ------------------ Sophia Collier Principal Executive Officer CERTIFICATION I, Sean P. Driscoll, 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) 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) 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 (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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, based upon the most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies 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. Date: March 08, 2004 /s/ Sean P. Driscoll -------------------- Sean P. Driscoll Principal Financial Officer EX-99.906CERT 4 a2129325zex-99_906cert.txt EXHIBIT 99.906 CERT EXHIBIT 11(b) This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, and accompanies the report on Form N-CSR for the period ended December 31, 2003 of Citizens Funds (the "Registrant"). Each of the undersigned, being the Principal Executive Officer and Principal Financial Officer of the Registrant, hereby certifies that, to such officer's knowledge,: 1. The Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; (15 U.S.C. 78m(a) or 78o(d); and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: March 08, 2004 /s/ Sophia Collier ------------------ Sophia Collier Principal Executive Officer Date: March 08, 2004 /s/ Sean P. Driscoll -------------------- Sean P. Driscoll Principal Financial Officer This certification is being furnished soley pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----