-----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, MuDu4Cn9vEB2gd2VgOgIySEfVTqyN2AU02myydzlxp0j6kQHrxfxCqEHH/mMfsp1 qBsXkzhrnJJvfrC8BzFZbA== /in/edgar/work/20000707/0000950109-00-002744/0000950109-00-002744.txt : 20000920 0000950109-00-002744.hdr.sgml : 20000920 ACCESSION NUMBER: 0000950109-00-002744 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000430 FILED AS OF DATE: 20000707 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTH AMERICAN FUNDS CENTRAL INDEX KEY: 0000848103 STANDARD INDUSTRIAL CLASSIFICATION: [0000 ] STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05797 FILM NUMBER: 668939 BUSINESS ADDRESS: STREET 1: CYPRESS TREE INVESTMENTS STREET 2: 286 CONGRESS ST CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 6172104520 MAIL ADDRESS: STREET 1: CYPRESS TREE INVESTMENTS STREET 2: 286 CONGRESS ST CITY: BOSTON STATE: MA ZIP: 02210 FORMER COMPANY: FORMER CONFORMED NAME: NORTH AMERICAN SECURITY TRUST DATE OF NAME CHANGE: 19920703 N-30D 1 0001.txt NORTH AMERICAN FUNDS - SEMI-ANNUAL REPORT [LOGO OF NORTH AMERICAN FUNDS] REPORT TO SHAREHOLDERS - -------------------------------------------------------------------------------- North American Funds(R) Semi-Annual Report April 30, 2000 - -------------------------------------------------------------------------------- Unaudited Financial Statements NORTH AMERICAN FUNDS President's Message - -------------------------------------------------------------------------------- North American Funds President's Message June 15, 2000 Dear Shareholder: I am pleased to inform you about a recent development that has taken place at North American Funds and to provide you with information about the market environment in which your funds were managed during the six-month period ended April 30, 2000. In March, the North American Funds became part of American General Corporation. Headquartered in Houston, American General is a leading provider of retirement services, investments, life insurance and consumer loans. The acquisition of North American Funds by American General Corporation provides you with the backing of one of the largest and most successful financial organizations in the country. We believe that the additional access to resources, research and technology that American General offers, along with our continuing commitment to providing you with leading investment managers who have proven themselves in their fields of expertise, will strengthen our ability to help you reach your goals in the months and years to come. Financial Market Review Equity Markets Three Federal Reserve Board interest rate hikes and a tug of war between technology stocks and the stocks of more traditional companies created a volatile investment environment during the six-month period that ended April 30, 2000. The period began on a strong note, with stocks on a broad upward trend. While the technology-heavy NASDAQ Composite Index made the strongest gains, all of the major market indices closed 1999 with double-digit returns. As we moved into 2000, however, there was a dramatic change in the investment environment and in investor psychology. Higher interest rates, inflation worries and questions about the sustainability of the high valuations of some stocks introduced a measure of uncertainty in the market. As a result, investors began rotating out of expensive technology issues into more traditional stocks. For a time, sector rotation was almost a daily event, with investors favoring traditional companies, or so-called "old economy" stocks one day and then turning to "new economy," or technology companies, the next. By the end of April 2000, all of the major market indices had declined from their year end 1999 levels. Activity in overseas markets mirrored that of the U.S. market, with investors favoring technology stocks and then turning to other areas of the economy when technology stocks appeared overvalued. In Europe, stronger economic growth, falling unemployment and rising consumer and business confidence were positive for the long-term growth of stocks in the region. In Asia, Japan continued to struggle to regain its economic footing, however, many of the country's economic indicators were positive. Japanese imports and capital spending are rising, business confidence is improving and the commercial real estate market is gaining strength. Outside Japan, other Asian markets were affected by volatility in technology issues. Fixed Income Markets During the period, the U.S. Treasury announced an initiative to reduce the national debt by scaling back the issuance of long-term bonds and buying back some outstanding debt. This move sparked a rally in longer-term Treasury securities because investors believed that the scarcity of bonds would drive prices higher. The Treasury's debt reduction program, coupled with the Fed's tighter monetary policy, produced an inverted yield curve--one in which yields on short-term Treasury securities outpaced the yields on long-term Treasury securities. In other fixed income sector, yields on high yield and investment grade corporate bonds rose and prices declined. Personal Investing Strategies As the year continues, the stocks of many companies may continue to face challenges from rising short-term rates and high valuations among market leaders, though the recent correction made the prices of many stocks more reasonable. We believe the current market volatility underscores the need for investors to diversify their investments. Diversification has and always will be a critical component to investing responsibly. In our opinion, another component to investing responsibly is the identification of when you are going to need the money you are investing, as this will determine the type of securities you should consider. For example, if you need your money within twelve months of investing, the stock market is probably not the place to be invested. However, if you are in the market for the long haul, then you should remain consistent with your long-term plans. As always, you should consult your financial advisor to help you determine the proper investments to meet your individual needs. At North American Funds, we are committed to you and to your investment future. The new relationship with American General only strengthens our commitment, and over the upcoming months you will see the advantages we can offer due to this exciting new association. Look for new products, services and additional enhancements to our website going forward. You have our promise that we will continue to strive to provide you with disciplined and varied investment management expertise and high quality customer service, all in one fund family. If you have any questions about your investments, we encourage you to call our customer service team at 800-872-8037 from 9:00 to 6:00 PM, Eastern Time, Monday through Friday. Or, you may use our enhanced automated information line at 800-872-2251, 24 hours a day, seven days a week. You can also obtain up-to- date performance information and daily pricing for any North American Fund at our website at www.northamericanfunds.com. Thank you for your continued support. Sincerely, /s/ Alice T. Kane Alice T. Kane Chairman and President North American Funds NORTH AMERICAN FUNDS STATEMENT OF ASSETS AND LIABILITIES -- APRIL 30, 2000 (Unaudited) - --------------------------------------------------------------------------------
Small Cap Mid Cap Growth Fund Growth Fund International International Global (formerly (formerly Small Cap Equity Equity Emerging Small/Mid Fund Fund Fund Growth) Cap) ------------- ------------- ------------ ------------ ------------ ASSETS: - ------- Investments in securities, at value* (Includes a repurchase agreement of $4,431,000 in the International Small Cap Fund) (See accompanying Portfolio of Investments)........ $31,979,742 $26,256,131 $53,094,644 $5,573,838 $52,979,358 Receivable for forward foreign currency contracts to sell (Notes 2 and 8)........ 632,325 4,517,506 - - - Forward foreign currency contracts to buy, at value (Cost: $1,558,256 and $4,339,981, respectively).......... 1,545,263 4,413,647 - - - Cash.................... 550 661 447 - 90 Foreign currency (Cost: $17,707 in Int'l Small Cap, and $42,350 in Int'l Equity $81,903 in Global Equity)......... 17,137 40,125 81,903 - - Investment in State Street Bank & Trust Company Navigator Securities Lending Trust held as collateral for securities on loan, at value (Note 2)......... - 3,161,281 3,642,166 - 10,194,186 Variation margin receivable for open futures contracts...... - 84,583 - - - Deferred Organization Costs.................. - - - 17,566 - Receivables: Investments sold....... 724,616 113,703 48,989 12,507 202,187 Fund shares sold....... 170,781 6,297 2,100 2,733 1,000 Dividends.............. 23,552 45,110 171,910 - 3,673 Interest............... 3,169 1,065 1,429 2,342 188 Foreign tax withholding reclaims.............. 3,490 15,914 42,541 - - From adviser........... - - - 7,177 - Other assets............ 56,030 86,286 - 71,621 44,450 ------------ ------------ ------------ ------------ ------------ Total assets.......... 35,156,655 38,742,309 57,086,129 5,687,784 63,425,132 ------------ ------------ ------------ ------------ ------------ LIABILITIES: - ------------ Forward foreign currency contracts to sell, at value (Cost: $632,325 and $4,517,506, respectively) (Notes 2 and 8)........ 627,856 4,628,590 - - - Collateral on securities loaned, at value (Note 2)..................... - 3,161,281 3,642,166 - 10,194,186 Payables: Forward foreign currency contracts to buy (Notes 2 and 8)... 1,558,256 4,339,981 - - - Investments purchased.. 1,616,296 1,356,494 972,007 2,398 219,043 Fund shares redeemed... 23,655 24,614 101,062 - 6,854 Dividend and interest withholding tax....... 2,607 8,909 19,749 - - Investment adviser..... 15,313 12,546 44,187 - 21,370 Custodian and transfer agent fees............ - 16,510 14,742 366 2,299 Distribution fee....... - 11,279 17,039 3,820 19,541 Other accrued expenses. 5,971 1,046 29,012 23 1,225 ------------ ------------ ------------ ------------ ------------ Total liabilities..... 3,849,954 13,561,250 4,839,964 6,607 10,464,518 ------------ ------------ ------------ ------------ ------------ NET ASSETS.............. $31,306,701 $25,181,059 $52,246,165 $5,681,177 $52,960,614 ------------ ------------ ------------ ------------ ------------
*See Page 2 The accompanying notes are an integral part of the financial statements. 1 NORTH AMERICAN FUNDS STATEMENT OF ASSETS AND LIABILITIES continued -- APRIL 30, 2000 (unaudited) - --------------------------------------------------------------------------------
Small Cap Mid Cap Growth Fund Growth Fund International International Global (formerly (formerly Small Cap Equity Equity Emerging Small/Mid Fund Fund Fund Growth) Cap) ------------- ------------- ------------ ------------ ------------ NET ASSETS CONSIST OF: - ---------------------- Undistributed net investment income/(loss) (Note 2).................... ($319,017) ($173,220) ($404,327) ($32,450) ($507,479) Accumulated undistributed net realized gain (loss) on investments, foreign currency and forward foreign currency contracts.... 10,047,539 2,199,732 3,074,000 458,006 19,882,834 Unrealized appreciation (depreciation) on: Investments............ (3,153,418) 1,443,642 (1,889,668) 66,064 (5,397,620) Futures................ (42,090) Foreign currency and forward foreign currency contracts.... (857) (34,563) (8,841) - - Capital shares at par value of $.001 (Note 3).................... 1,408 2,198 4,405 320 2,730 Additional paid-in capital............... 24,731,046 21,785,360 51,470,596 5,189,237 38,980,149 ------------ ------------ ------------ ------------ ------------ Net assets............ $31,306,701 $25,181,059 $52,246,165 $5,681,177 $52,960,614 ------------ ------------ ------------ ------------ ------------ *Investments in securities, at identified cost (Note 2)..................... $35,133,160 $24,812,489 $54,984,312 $5,507,774 $58,376,978 ------------ ------------ ------------ ------------ ------------ NET ASSET VALUES: - ----------------- Class A Shares Net assets at value.... $6,017,118 $4,716,463 $8,200,043 $1,106,327 $7,727,556 Shares outstanding..... 263,003 408,338 678,606 60,898 386,150 Net asset value (NAV) and redemption price per share.............. $22.88 $11.55 $12.08 $18.17 $20.01 ------ ------ ------ ------ ------ Public offering price per share (100/94.25 of NAV) On sales of $100,000 or more the offering price is reduced...... $24.27 $12.25 $12.81 $19.27 $21.23 ------ ------ ------ ------ ------ Class B Shares Net assets at value.... $12,941,316 $13,853,380 $16,314,006 $2,207,793 $22,411,471 Shares outstanding..... 586,715 1,212,060 1,383,840 124,352 1,163,011 Net asset value, offering price and redemption price per share.................. $22.06 $11.43 $11.79 $17.75 $19.27 ------ ------ ------ ------ ------ Class C Shares Net assets at value.... $12,348,267 $6,611,216 $27,732,116 $2,367,057 $22,821,587 Shares outstanding..... 557,792 578,468 2,341,954 133,317 1,182,131 Net asset value, offering price and redemption price per share.................. $22.14 $11.43 $11.84 $17.76 $19.31 ------ ------ ------ ------ ------
The accompanying notes are an integral part of the financial statements. 2 NORTH AMERICAN FUNDS STATEMENT OF ASSETS AND LIABILITIES continued -- APRIL 30, 2000 (unaudited) - --------------------------------------------------------------------------------
Large Cap Growth Fund (formerly Tax-Sensitive Growth & Equity- Growth Equity) Equity Fund Income Fund Income Fund Balanced Fund -------------- ------------- ------------- ------------- ------------- ASSETS: - ------- Investments in securities, at value* (See accompanying Portfolio of Investments)........... $58,818,425 $5,239,828 $291,407,739 $68,234,433 $56,167,605 Cash.................... 176 31,490 856 - 81 Investment in State Street Bank & Trust Company Navigator Securities Lending Trust held as collateral for securities on loan, at value (Note 2)......... 4,271,340 - 9,571,700 4,347,700 - Variation margin receivable for open futures contracts...... - - - - - Deferred Organization Costs.................. - 17,484 - - - Receivables: Investments sold....... 16,851 - 803,228 981,192 386,769 Fund shares sold....... 9,846 - 145,179 2,587 - Dividends.............. 15,221 4,050 286,327 153,819 31,194 Interest............... 2,149 - 379 - 336,429 Foreign tax withholding reclaims.............. 88 - - - 5,863 From adviser........... - 7,619 - - - Other assets............ 89,475 63,068 - - - ------------- ------------- ------------- ------------- ------------- Total assets.......... 63,223,571 5,363,539 302,215,408 73,719,731 56,927,941 ------------- ------------- ------------- ------------- ------------- LIABILITIES: - ------------ Collateral on securities loaned, at value (Note 2)..................... 4,271,340 - 9,571,700 4,347,700 - Payables: Investments purchased.. 2,421,988 - 501,054 - 640,099 Fund shares redeemed... 14,359 - 111,809 55,701 12,599 Dividend and interest withholding tax....... - - - - 228 Investment adviser..... 28,539 - 125,845 13,405 21,128 Custodian and transfer agent fees............ 1,881 5,007 97,877 45,538 36,053 Distribution fee....... 75,325 4,103 90,061 20,371 11,264 Due to custodian....... - - - 308,151 - Other accrued expenses. 1,446 - 232,197 35,870 9,575 ------------- ------------- ------------- ------------- ------------- Total liabilities..... 6,814,878 9,110 10,730,543 4,826,736 730,946 ------------- ------------- ------------- ------------- ------------- NET ASSETS.............. $56,408,693 $5,354,429 $291,484,865 $68,892,995 $56,196,995 ------------- ------------- ------------- ------------- ------------- NET ASSETS CONSIST OF: - ---------------------- Undistributed net investment income/(loss) (Note 2).............. ($446,227) ($36,805) ($1,214,531) $100,384 $85,531 Accumulated undistributed net realized gain (loss) on investments, foreign currency and forward foreign currency contracts.... 3,708,754 (1,966,196) 10,743,171 (6,755,784) (2,207,893) Unrealized appreciation (depreciation) on: Investments............ 8,619,646 1,316,803 113,753,736 1,929,977 799,721 Foreign currency and forward foreign currency contracts.... (14) - (3) - (930) Capital shares at par value of $.001 (Note 3).................... 2,645 547 10,645 5,953 6,120 Additional paid-in capital............... 44,523,889 6,040,080 168,191,847 73,612,465 57,514,446 ------------- ------------- ------------- ------------- ------------- Net assets............ $56,408,693 $5,354,429 $291,484,865 $68,892,995 $56,196,995 ------------- ------------- ------------- ------------- ------------- *Investments in securities, at identified cost (Note 2)............... $50,198,779 $3,923,025 $177,654,003 $66,304,456 $55,367,884 ------------- ------------- ------------- ------------- -------------
The accompanying notes are an integral part of the financial statements. 3 NORTH AMERICAN FUNDS STATEMENT OF ASSETS AND LIABILITIES continued--APRIL 30, 2000 (unaudited) - --------------------------------------------------------------------------------
Large Cap Growth Fund (formerly Tax-Sensitive Growth & Equity- Balanced Growth Equity) Equity Fund Income Fund Income Fund Fund -------------- ------------- ------------ ----------- ----------- NET ASSET VALUES: - ----------------- Class A Shares Net assets at value.... $6,633,385 $277,302 $37,294,027 $8,858,155 $4,754,178 Shares outstanding..... 302,922 27,777 1,338,809 761,835 521,879 Net asset value (NAV) and redemption price per share.............. $21.90 $9.98 $27.86 $11.63 $9.11 ------ ----- ------ ------ ----- Public offering price per share (100/94.25 of NAV) On sales of $100,000 or more the offering price is reduced................ $23.24 $10.59 $29.56 $12.34 $9.66 ------ ------ ------ ------ ----- Class B Shares Net assets at value.... $23,250,380 $2,449,960 $101,640,228 $18,267,294 $9,708,622 Shares outstanding..... 1,093,208 250,313 3,731,467 1,588,017 1,070,311 Net asset value, offering price and redemption price per share.................. $21.27 $9.79 $27.24 $11.50 $9.07 ------ ----- ------ ------ ----- Class C Shares Net assets at value.... $26,524,928 $2,627,167 $152,550,610 $41,767,546 $41,734,195 Shares outstanding..... 1,248,099 269,042 5,575,992 3,602,764 4,526,293 Net asset value, offering price and redemption price per share.................. $21.25 $9.76 $27.36 $11.59 $9.22 ------ ----- ------ ------ -----
The accompanying notes are an integral part of the financial statements. 4 NORTH AMERICAN FUNDS STATEMENT OF ASSETS AND LIABILITIES continued--APRIL 30, 2000 (unaudited) - --------------------------------------------------------------------------------
Core Bond Fund Municipal Bond U. S. (formerly Fund (formerly Government Strategic Investment National Securities Money Market Income Fund Quality Bond) Municipal Bond) Fund Fund ------------ ------------- --------------- ------------ ------------ ASSETS: - ------- Investments in securities, at value* (See accompanying Portfolio of Investments)........... $39,275,433 $9,774,290 $9,683,858 $53,227,599 $19,828,863 Cash.................... 226 - - 116 907 Investment in State Street Bank & Trust Company Navigator Securities Lending Trust held as collateral for securities on loan, at value (Note 2)......... 632,350 1,334,575 - - - Receivables: Investments sold....... 4,287,660 212,398 95,648 43,613 - Fund shares sold....... - - - - 53,187 Dividends.............. 867 - - - - Interest............... 654,261 181,924 158,028 343,543 38,211 From adviser........... - 10,470 6,359 - 12,493 Other assets............ 40,136 62,220 65,487 24,642 97,654 ------------ ------------ ------------ ------------ ------------ Total assets.......... 44,890,933 11,575,877 10,009,380 53,639,513 20,031,315 ------------ ------------ ------------ ------------ ------------ LIABILITIES: - ------------ Collateral on securities loaned, at value (Note 2)..................... 632,350 1,334,575 - - - Payables: Investments purchased.. 3,657,562 34,981 - 3,858,737 - Fund shares redeemed... 31,022 3,000 10 34,665 - Dividends.............. 240,026 73,968 39,844 458,633 91,490 Dividend and interest withholding tax....... - 12 - - - Investment adviser..... 15,761 - - 346 - Custodian and transfer agent fees............ 13,853 - 8,087 24,291 2,966 Distribution fee....... 18,428 - 3,188 10,094 Due to custodian....... 379,164 373,981 33,693 - - Other accrued expenses. 22,481 - - 3,025 1,830 ------------ ------------ ------------ ------------ ------------ Total liabilities..... 5,010,647 1,820,517 84,822 4,389,791 96,286 ------------ ------------ ------------ ------------ ------------ NET ASSETS.............. $39,880,286 $9,755,360 $9,924,558 $49,249,722 $19,935,029 ------------ ------------ ------------ ------------ ------------ NET ASSETS CONSIST OF: - ---------------------- Undistributed net investment income/(loss) (Note 2).................... (108,824) (46,733) - (493,483) - Accumulated undistributed net realized gain (loss) on investments, foreign currency and forward foreign currency contracts.... (6,614,977) (835,370) (97,994) (2,047,381) - Unrealized appreciation (depreciation) on: Investments............ (2,701,956) (565,744) (78,770) (2,234,360) - Foreign currency and forward foreign currency contracts.... (3,207) - - - - Capital shares at par value of $.001 (Note 3).................... 4,879 1,017 1,055 5,284 19,935 Additional paid-in capital............... 49,304,371 11,202,190 10,100,267 54,019,662 19,915,094 ------------ ------------ ------------ ------------ ------------ Net assets............ $39,880,286 $9,755,360 $9,924,558 $49,249,722 $19,935,029 ------------ ------------ ------------ ------------ ------------ *Investments in securities, at identified cost (Note 2)..................... $41,977,390 $10,340,034 $9,762,628 $55,461,959 $19,828,863 ------------ ------------ ------------ ------------ ------------
The accompanying notes are an integral part of the financial statements. 5 NORTH AMERICAN FUNDS STATEMENT OF ASSETS AND LIABILITIES continued--APRIL 30, 2000 (unaudited) - --------------------------------------------------------------------------------
Core Bond Fund Municipal Bond U. S. (formerly Fund (formerly Government Strategic Investment National Securities Money Income Fund Quality Bond) Municipal Bond) Fund Market Fund ----------- ------------- --------------- ----------- ----------- NET ASSET VALUES: - ----------------- Class A Shares Net assets at value.... $6,947,578 $2,887,497 $3,721,344 $30,657,842 $10,370,243 Shares outstanding..... 849,993 301,139 395,338 3,288,615 10,349,530 Net asset value (NAV) and redemption price per share.............. $8.17 $9.59 $9.41 $9.32 $1.00 ----- ----- ----- ----- ----- Public offering price per share (100/95.25 of NAV) On sales of $100,000 or more the offering price is reduced................ $8.58 $10.07 $9.88 $9.79 ----- ------ ----- ----- Class B Shares Net assets at value.... $17,071,172 $3,582,784 $3,377,967 $9,713,740 $2,843,037 Shares outstanding..... 2,088,809 373,669 358,910 1,042,032 2,842,808 Net asset value, offering price and redemption price per share.............. $8.17 $9.59 $9.41 $9.32 $1.00 ----- ----- ----- ----- ----- Class C Shares Net assets at value.... $15,861,536 $3,285,079 $2,825,247 $8,878,139 $6,721,749 Shares outstanding..... 1,940,368 342,621 300,182 952,416 6,721,146 Net asset value, offering price and redemption price per share.............. $8.17 $9.59 $9.41 $9.32 $1.00 ----- ----- ----- ----- -----
The accompanying notes are an integral part of the financial statements. 6 NORTH AMERICAN FUNDS STATEMENT OF OPERATIONS-- For The Six Months Ended April 30, 2000 (Unaudited) - --------------------------------------------------------------------------------
Small Cap Mid Cap Growth Growth Fund Fund International International Global (formerly (formerly Small Cap Equity Equity Emerging Small/Mid Fund Fund Fund Growth) Cap) ------------- ------------- ------------- ------------ ------------ INVESTMENT INCOME: Interest.................. $22,697 $16,076 $5,174 $12,335 $67,748 Dividends (Net of $6,766, $20,535, $51,866, and $792 withholding tax in International Small Cap, International Equity, Global Equity, and Mid Cap Growth, respectively)............ 48,640 131,986 582,191 272 29,907 ------------ ------------ ------------- ------------ ------------ Total income............ 71,337 148,062 587,365 12,607 97,655 ------------ ------------ ------------- ------------ ------------ EXPENSES: Distribution for Class A.. 10,697 7,615 18,240 1,180 12,871 Distribution for Class B.. 66,399 73,897 109,717 7,700 109,574 Distribution for Class C.. 56,852 34,373 191,441 8,154 114,901 Investment adviser fee (Note 5)................. 161,504 117,024 317,946 18,262 241,607 Custodian fee............. 27,615 19,861 64,279 18,634 29,727 Transfer agent fee........ 20,329 24,841 77,980 3,157 44,241 Accounting/administration. 25,264 22,934 66,432 2,840 44,769 Audit and legal fees...... 7,833 6,946 19,964 889 13,650 Amortization of Organization Costs....... - - - 3,276 - Miscellaneous............. 27,407 19,941 36,898 5,274 33,151 ------------ ------------ ------------- ------------ ------------ Expenses before reimbursement by investment adviser....... 403,900 327,432 902,897 69,366 644,491 Reimbursement of expenses by investment adviser (Note 5)................. 13,546 14,551 58,286 24,309 39,357 ------------ ------------ ------------- ------------ ------------ Net expenses............ 390,354 312,881 844,611 45,057 605,134 ------------ ------------ ------------- ------------ ------------ Net investment income (loss)................. (319,017) (164,819) (257,246) (32,450) (507,479) ------------ ------------ ------------- ------------ ------------ REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FORWARD FOREIGN CURRENCY CONTRACTS: Net realized gain (loss) on: Investment transactions... 10,377,321 2,312,736 2,915,957 459,774 20,014,528 Futures contracts......... - (34,787) - - - Foreign currency and forward foreign currency contracts................ (163,248) (33,294) 618,801 - (209) Change in unrealized appreciation (depreciation) on: Investments............... (4,819,372) (702,706) (11,915,260) (182,540) (8,968,166) Futures contracts......... - (14,270) - - - Translation of foreign currency and forward foreign currency contracts................ (36) (22,048) (153,843) - - ------------ ------------ ------------- ------------ ------------ Net gain (loss) on investments, foreign currency and forward foreign currency contracts................. 5,394,665 1,505,631 (8,534,345) 277,234 11,046,153 ------------ ------------ ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations................ $5,075,648 $1,340,812 ($8,791,591) $244,784 $10,538,674 ------------ ------------ ------------- ------------ ------------
The accompanying notes are an integral part of the financial statements. 7 NORTH AMERICAN FUNDS STATEMENT OF OPERATIONS-- For The Six Months Ended April 30, 2000 (Unaudited) - --------------------------------------------------------------------------------
Large Cap Growth Fund Tax- (formerly Sensitive Growth & Equity- Growth Equity Income Income Balanced Equity) Fund Fund Fund Fund ------------- ------------- ------------- -------------- ------------- INVESTMENT INCOME: Interest.................. $78,637 $2,979 $38,973 - $798,648 Dividends (Net of $802, $28, $121 and $256 withholding tax in Large Cap Growth, Tax Sensitive, Equity-Income and Balanced, respectively)... 87,299 36,377 1,733,204 1,125,089 171,960 ------------- ------------- ------------- -------------- ------------- Total income............ 165,936 39,356 1,772,177 1,125,089 970,608 ------------- ------------- ------------- -------------- ------------- EXPENSES: Distribution for Class A.. 11,542 1,107 65,639 19,807 9,337 Distribution for Class B.. 107,983 15,793 526,753 120,145 58,526 Distribution for Class C.. 123,542 15,806 779,692 272,025 236,211 Investment adviser fee (Note 5)................. 238,052 29,547 996,069 316,626 245,491 Custodian fee............. 30,056 19,598 137,956 49,737 36,485 Transfer agent fee........ 43,484 7,365 267,645 102,380 65,758 Accounting/administration. 45,043 6,552 264,245 84,385 59,208 Audit and legal fees...... 13,750 1,962 79,897 25,258 17,813 Amortization of Organization Costs....... - 3,278 - - - Miscellaneous............. 26,649 12,099 134,981 44,346 32,695 ------------- ------------- ------------- -------------- ------------- Expenses before reimbursement by investment adviser....... 640,101 113,101 3,252,877 1,034,709 761,524 Reimbursement of expenses by investment adviser (Note 5)................. 27,938 36,940 266,169 133,610 95,069 ------------- ------------- ------------- -------------- ------------- Net expenses............ 612,163 76,161 2,986,708 901,099 666,455 ------------- ------------- ------------- -------------- ------------- Net investment income... (446,227) (36,805) (1,214,531) 223,990 304,153 ------------- ------------- ------------- -------------- ------------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FORWARD FOREIGN CURRENCY CONTRACTS: Net realized gain (loss) on: Investment transactions... 3,916,062 (204,398) 11,064,147 (6,745,602) (2,157,732) Foreign currency and forward foreign currency contracts................ 874 - - - 53,012 Change in unrealized appreciation (depreciation) on: Investments............... 2,540,003 584,999 4,772,092 (5,769,473) 2,696,306 Translation of foreign currency and forward foreign currency contracts................ (12) - 9 - (797) ------------- ------------- ------------- -------------- ------------- Net gain on investments, foreign currency and forward foreign currency contracts................. 6,456,927 380,601 15,836,248 (12,515,075) 590,789 ------------- ------------- ------------- -------------- ------------- Net increase in net assets resulting from operations. $6,010,700 $343,796 $14,621,717 ($12,291,085) $894,942 ------------- ------------- ------------- -------------- -------------
The accompanying notes are an integral part of the financial statements. 8 NORTH AMERICAN FUNDS STATEMENT OF OPERATIONS-- For The Six Months Ended April 30, 2000 (Unaudited) - --------------------------------------------------------------------------------
Municipal Core Bond Bond Fund Fund (formerly (formerly U. S. Strategic Investment National Government Money Income Quality Municipal Securities Market Fund Bond) Bond) Fund Fund ----------- ----------- ----------- ----------- ----------- INVESTMENT INCOME: Interest (Net of $1,212 withholding tax in Strategic Income)........ $2,427,553 $430,292 $329,995 $1,973,005 $538,221 Dividends (Net of $17 withholding tax in Core Bond).................... - 2,031 - - - ----------- ----------- ----------- ----------- ----------- Total income............ 2,427,553 432,323 329,995 1,973,005 538,221 ----------- ----------- ----------- ----------- ----------- EXPENSES: Distribution for Class A.. 13,816 5,665 2,993 57,614 - Distribution for Class B.. 96,946 19,610 18,484 54,232 - Distribution for Class C.. 90,518 19,945 17,200 48,064 - Investment adviser fee (Note 5)................. 170,181 33,443 33,384 160,144 19,204 Custodian fee............. 42,381 20,526 20,542 30,714 22,376 Transfer agent fee........ 45,996 12,081 11,269 53,358 20,681 Accounting/administration. 41,742 10,160 10,215 48,384 17,448 Audit and legal fees...... 12,566 3,063 3,075 14,591 5,257 Miscellaneous............. 24,112 8,725 8,744 27,586 12,402 ----------- ----------- ----------- ----------- ----------- Expenses before reimbursement by investment adviser....... 538,258 133,218 125,906 494,687 97,368 Reimbursement of expenses by investment adviser (Note 5)................. 67,821 35,656 39,881 94,673 35,041 ----------- ----------- ----------- ----------- ----------- Net expenses............ 470,437 97,562 86,025 400,014 62,327 ----------- ----------- ----------- ----------- ----------- Net investment income .. 1,957,116 334,761 243,970 1,572,991 475,894 ----------- ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FORWARD FOREIGN CURRENCY CONTRACTS: Net realized gain (loss) on: Investment transactions... (2,267,700) (257,838) 2,121 (389,846) - Foreign currency and forward foreign currency contracts................ (334,622) - - - - Change in unrealized appreciation (depreciation) on: Investments............... 1,506,560 (7,182) (90,818) (945,041) - Translation of foreign currency and forward foreign currency contracts................ 1,164 - - - - ----------- ----------- ----------- ----------- ----------- Net gain on investments, foreign currency and forward foreign currency contracts................. (1,094,598) (265,020) (88,697) (1,334,887) - ----------- ----------- ----------- ----------- ----------- Net increase in net assets resulting from operations. $862,518 $69,741 $155,273 $238,104 $475,894 ----------- ----------- ----------- ----------- -----------
The accompanying notes are an integral part of the financial statements. 9 NORTH AMERICAN FUNDS STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
International International Equity Small Cap Fund Fund * Global Equity Fund ------------------------- ------------------------- ------------------------- Six Months Six Months Six Months Ended Year Ended Year Ended Year 4/30/00 Ended 4/30/00 Ended 4/30/00 Ended (Unaudited) 10/31/99 (Unaudited) 10/31/99 (Unaudited) 10/31/99 ------------ ------------ ------------ ------------ ------------ ------------ OPERATIONS: - ----------- Net investment income (loss)................ ($319,017) ($218,092) ($164,819) ($93,263) ($257,246) ($93,660) Net realized gain (loss) on: Investment transactions.......... 10,377,321 4,674,222 2,312,736 2,202,524 2,915,957 15,363,203 Futures contracts...... - - (34,787) (105,083) - - Foreign currency and forward foreign currency contracts.... (163,248) (58,974) (33,294) (41,996) 618,801 (270,661) Change in unrealized appreciation (depreciation) on: Investments............ (4,819,372) 127,096 (702,706) 2,776,922 (11,915,260) (8,810,322) Futures contracts...... - - (14,270) (27,820) - - Foreign currency and forward foreign currency contracts.... (36) (958) (22,048) 155,639 (153,843) 365,478 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations........ 5,075,648 4,523,294 1,340,812 4,866,923 (8,791,591) 6,554,038 DISTRIBUTIONS FROM: - ------------------- Net investment income Class A................ - - (33,276) - - - Class B................ - - (19,674) - - - Class C................ - - (9,219) - - - Net realized gains on investments and foreign currency transactions Class A................ (662,245) - (307,060) (12,093) (1,483,161) (2,303,340) Class B................ (1,815,252) - (1,068,999) (44,312) (3,256,012) (2,219,820) Class C................ (1,423,034) - (499,719) (25,387) (5,704,775) (4,228,655) Increase (decrease) in net assets from capital share transactions (Note 3)............... 14,433,565 (4,278,804) 832,215 (5,598,242) (11,856,830) (33,579,885) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets............. 15,608,682 244,490 235,080 (813,111) (31,092,369) (35,777,662) Net assets at beginning of period.............. 15,698,019 15,453,529 24,945,979 25,759,090 83,338,534 119,116,196 ------------ ------------ ------------ ------------ ------------ ------------ Net assets at end of period................. $31,306,701 $15,698,019 $25,181,059 $24,945,979 $52,246,165 $83,338,534 ------------ ------------ ------------ ------------ ------------ ------------ Undistributed net investment income (loss)................. ($319,017) - ($173,220) $53,768 ($404,327) ($147,081) ------------ ------------ ------------ ------------ ------------ ------------
- --------------------- * Formerly the International Growth and Income Fund The accompanying notes are an integral part of the financial statements. 10 NORTH AMERICAN FUNDS STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Small Cap Growth Fund Mid Cap Growth Fund (formerly Emerging (formerly Large Cap Growth Fund Growth) Small/Mid Cap) (formerly Growth Equity) ------------------------- ------------------------- ------------------------- Six Months Six Months Six Months Ended Year Ended Year Ended 01/06/98 * 4/30/00 Ended 4/30/00 Ended 4/30/00 to (Unaudited) 10/31/99 (Unaudited) 10/31/99 (Unaudited) 10/31/99 ------------ ------------ ------------ ------------ ------------ ------------ OPERATIONS: - ----------- Net investment income (loss)................ ($32,450) ($19,249) ($507,479) ($725,375) ($446,227) ($560,560) Net realized gain (loss) on: Investment transactions.......... 459,774 63,202 20,014,528 8,025,646 3,916,062 6,256,855 Foreign currency and forward foreign currency contracts.... - - (209) 8 874 (2,574) Change in unrealized appreciation (depreciation) on: Investments............ (182,540) 309,851 (8,968,166) 1,370,689 2,540,003 2,622,980 Foreign currency and forward foreign currency contracts.... - - - - (12) (7) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations........ 244,784 353,804 10,538,674 8,670,968 6,010,700 8,316,694 DISTRIBUTIONS FROM: - ------------------- Net realized gains on investments and foreign currency transactions Class A................ (1,651) - (975,145) (460,517) (746,897) (265,199) Class B................ (4,827) - (3,044,548) (1,326,329) (2,403,530) (781,956) Class C................ (5,672) - (3,232,504) (1,510,893) (2,750,201) (851,533) Increase (decrease) in net assets from capital share transactions (Note 3) .............. 4,124,214 323,343 7,581,162 1,712,126 14,007,969 7,329,284 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets............. 4,356,848 677,147 10,867,639 7,085,355 14,118,041 13,747,290 Net assets at beginning of period.............. 1,324,331 647,184 42,092,975 35,007,620 42,290,652 28,543,362 ------------ ------------ ------------ ------------ ------------ ------------ Net assets at end of period................. $5,681,177 $1,324,331 $52,960,614 $42,092,975 $56,408,693 $42,290,652 ------------ ------------ ------------ ------------ ------------ ------------ Undistributed net investment income (loss)................. ($32,450) - ($507,479) - ($446,228) - ------------ ------------ ------------ ------------ ------------ ------------
- --------------------- * Commencement of operations The accompanying notes are an integral part of the financial statements. 11 NORTH AMERICAN FUNDS STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Tax-Sensitive Growth & Equity Fund Income Fund Equity-Income Fund ------------------------- ------------------------------ ---------------------------- Six Months Six Months Six Months Ended Year Ended Year Ended Year 4/30/00 Ended 4/30/00 Ended 4/30/00 Ended (Unaudited) 10/31/99 (Unaudited) 10/31/99 (Unaudited) 10/31/99 ------------ ------------ -------------- --------------- ------------- -------------- OPERATIONS: - ----------- Net investment income (loss)................ ($36,805) ($98,113) ($1,214,531) ($1,248,402) $223,990 $1,069,098 Net realized gain (loss) on: Investment transactions.......... (204,398) (1,007,031) 11,064,147 29,073,940 (6,745,602) 25,209,364 Foreign currency and forward foreign currency contracts.... - - - (244) - (11,895) Change in unrealized appreciation (depreciation) on: Investments............ 584,999 1,514,682 4,772,092 27,366,787 (5,769,473) (19,384,683) Foreign currency and forward foreign currency contracts.... - - 9 153 - 101 ------------ ------------ -------------- --------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations........ 343,796 409,538 14,621,717 55,192,234 (12,291,085) 6,881,985 DISTRIBUTIONS FROM: - ------------------- Net investment income Class A................ - - - - (155,859) (602,777) Class B................ - - - - (145,036) (371,918) Class C................ - - - - (331,817) (918,427) Net realized gains on investments and foreign currency transactions Class A................ - - (3,116,232) (1,712,771) (2,819,627) (2,331,204) Class B................ - - (9,002,044) (3,082,778) (5,890,033) (2,468,438) Class C................ - - (13,236,319) (4,839,860) (13,142,358) (6,050,850) Increase (decrease) in net assets from capital share transactions (Note 3)............... (3,962,879) (1,770,400) 4,255,588 11,521,213 (12,180,413) (49,890,706) ------------ ------------ -------------- --------------- ------------- -------------- Increase (decrease) in net assets............. (3,619,083) (1,360,862) (6,477,290) 57,078,038 (46,956,228) (55,752,335) Net assets at beginning of period.............. 8,973,512 10,334,374 297,962,155 240,884,117 115,849,223 171,601,558 ------------ ------------ -------------- --------------- ------------- -------------- Net assets at end of period................. $5,354,429 $8,973,512 $291,484,865 $297,962,155 $68,892,995 $115,849,223 ------------ ------------ -------------- --------------- ------------- -------------- Undistributed net investment income (loss)................. ($36,805) - ($1,214,532) - $100,384 $509,106 ------------ ------------ -------------- --------------- ------------- --------------
The accompanying notes are an integral part of the financial statements. 12 NORTH AMERICAN FUNDS STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Core Bond Fund (formerly Investment Balanced Fund Strategic Income Fund Quality Bond) ------------------------- ------------------------- ------------------------- Six Months Six Months Six Months Ended Year Ended Year Ended Year 4/30/00 Ended 4/30/00 Ended 4/30/00 Ended (Unaudited) 10/31/99 (Unaudited) 10/31/99 (Unaudited) 10/31/99 ------------ ------------ ------------ ------------ ------------ ------------ OPERATIONS: - ----------- Net investment income (loss)................ $304,153 $1,525,974 $1,957,116 $5,106,661 $334,761 $937,686 Net realized gain (loss) on: Investment transactions.......... (2,157,732) 9,063,680 (2,267,700) (3,377,733) (257,838) (205,464) Foreign currency and forward foreign currency contracts.... 53,012 (43,308) (334,622) (246,365) - - Change in unrealized appreciation (depreciation) on: Investments............ 2,696,306 (9,389,607) 1,506,560 (281,966) (7,182) (979,000) Foreign currency and forward foreign currency contracts.... (797) (920) 1,164 255,346 - - ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations........ 894,942 1,155,819 862,518 1,455,943 69,741 (246,778) DISTRIBUTIONS FROM: - ------------------- Net investment income Class A................ (155,664) (284,543) (365,981) (985,686) (111,992) (366,860) Class B................ (275,137) (243,851) (833,962) (2,027,824) (123,396) (279,710) Class C................ (1,059,004) (835,387) (771,470) (2,174,480) (125,224) (326,493) Net realized gains on investments and foreign currency transactions Class A................ (714,922) (1,061,187) - (93,964) - - Class B................ (1,649,177) (1,381,136) - (188,949) - - Class C................ (6,385,746) (4,691,171) - (202,495) - - Increase (decrease) in net assets from capital share transactions (Note 3)............... (8,021,233) (17,488,266) (10,096,857) (22,740,011) (2,348,517) (3,491,641) ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets............. (17,365,941) (24,829,722) (11,205,752) (26,957,466) (2,639,388) (4,711,482) Net assets at beginning of period.............. 73,562,936 98,392,658 51,086,038 78,043,504 12,394,748 17,106,230 ------------ ------------ ------------ ------------ ------------ ------------ Net assets at end of period................. $56,196,995 $73,562,936 $39,880,286 $51,086,038 $9,755,360 $12,394,748 ------------ ------------ ------------ ------------ ------------ ------------ Undistributed net investment income (loss)................. $85,531 $1,271,183 ($108,824) ($94,527) ($46,733) ($20,882) ------------ ------------ ------------ ------------ ------------ ------------
The accompanying notes are an integral part of the financial statements. 13 NORTH AMERICAN FUNDS STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Municipal Bond Fund (formerly National U. S. Government Municipal Bond) Securities Fund Money Market Fund ------------------------ ------------------------- ------------------------- Six Months Six Months Six Months Ended Year Ended Year Ended Year 4/30/00 Ended 4/30/00 Ended 4/30/00 Ended (Unaudited) 10/31/99 (Unaudited) 10/31/99 (Unaudited) 10/31/99 ----------- ------------ ------------ ------------ ------------ ------------ OPERATIONS: - ----------- Net investment income (loss)................ $243,970 $594,894 $1,572,991 $3,700,215 $475,894 $986,731 Net realized gain (loss) on: Investment transactions.......... 2,121 (75,958) (389,846) (821,237) - 572 Change in unrealized appreciation (depreciation) on: Investments............ (90,818) (1,012,148) (945,041) (2,669,738) - - ----------- ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations........ 155,273 (493,212) 238,104 209,240 475,894 987,303 DISTRIBUTIONS FROM: - ------------------- Net investment income Class A................ (97,960) (241,991) (1,021,133) (2,291,801) (167,287) (390,560) Class B................ (75,667) (182,925) (295,558) (622,804) (103,927) (226,689) Class C................ (70,080) (169,977) (260,899) (572,045) (204,680) (370,054) In excess of net investment income Class A................ - - - (166,512) - - Class B................ - - - (45,250) - - Class C................ - - - (41,562) - - Return of capital Class A................ - - - (127,295) - - Class B................ - - - (34,593) - - Class C................ - - - (31,774) - - Increase (decrease) in net assets from capital share transactions (Note 3)............... (2,549,529) (2,589,104) (7,599,165) (18,269,612) 709,931 (5,226,114) ----------- ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets............. (2,637,963) (3,677,209) (8,938,651) (21,994,008) 709,931 (5,226,114) Net assets at beginning of period.............. 12,562,521 16,239,730 58,188,373 80,182,381 19,225,098 24,451,212 ----------- ------------ ------------ ------------ ------------ ------------ Net assets at end of period................. $9,924,558 $12,562,521 $49,249,722 $58,188,373 $19,935,029 $19,225,098 ----------- ------------ ------------ ------------ ------------ ------------ Undistributed net investment income (loss)................. - ($263) ($493,483) ($488,884) - - ----------- ------------ ------------ ------------ ------------ ------------
The accompanying notes are an integral part of the financial statements. 14 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
International Small Cap Fund ------------------------------------------------- Class A ------------------------------------------------- Six months Year Year 3/04/96* Ended Year Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96 (unaudited) - --------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $18.83 $13.91 $13.86 $13.43 $12.50 - --------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.22) (0.14) (0.02) (0.03) 0.05 Net realized and unrealized gain/(loss) on investments and foreign currency 8.94 5.06 0.07 0.46 0.88 ------------------------------------------------ Total from investment operations 8.72 4.92 0.05 0.43 0.93 ------------------------------------------------ Distributions Distributions from realized capital gains (4.67) - - - - - --------------------------------------------------------------------------------- Net Asset Value, End of Period $22.88 $18.83 $13.91 $13.86 $13.43 - --------------------------------------------------------------------------------- Total Return 46.82% + 35.37% 0.36% 3.20% 7.44% + - --------------------------------------------------------------------------------- Ratios/Supplemental Data - --------------------------------------------------------------------------------- Net assets, end of period (000's) $6,017 $2,309 $2,173 $3,225 $2,120 - --------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.02% # 1.90% 1.90% 1.90% 1.90% # - --------------------------------------------------------------------------------- Ratio of net investment income to average net assets (1.57%) # (0.87%) (0.12%) (0.19%) (0.50%) # - --------------------------------------------------------------------------------- Portfolio turnover rate 297% + 202% 54% 75% 67% # - --------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.10% # 2.24% 2.23% 2.46% 3.07% # - ---------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
International Small Cap Fund ----------------------------------------------- Class B ----------------------------------------------- Six months Year Year Year 3/04/96* Ended Ended Ended Ended to 4/30/00** 10/31/99 10/31/98 10/31/97 10/31/96 (unaudited) - -------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $18.35 $13.66 $13.71 $13.37 $12.50 - -------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.29) (0.27) (0.12) (0.11) (0.01) Net realized and unrealized gain/(loss) on investments and foreign currency 8.67 4.96 0.07 0.45 0.88 ---------------------------------------------- Total from investment operations 8.38 4.69 (0.05) 0.34 0.87 ---------------------------------------------- Distributions Distributions from realized capital gains (4.67) - - - - - -------------------------------------------------------------------------------- Net Asset Value, End of Period $22.06 $18.35 $13.66 $13.71 $13.37 - -------------------------------------------------------------------------------- Total Return 46.14% + 34.33% (0.36%) 2.54% 6.96% + - -------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------- Net assets, end of period (000's) $12,941 $7,417 $7,073 $7,369 $5,068 - -------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.66% # 2.55% 2.55% 2.55% 2.55% # - -------------------------------------------------------------------------------- Ratio of net investment income to average net assets (2.20%) # (1.53) (0.79%) (0.84%) (0.15%) # - -------------------------------------------------------------------------------- Portfolio turnover rate 297% + 202% 54% 75% 67% # - -------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.75% # 2.89% 2.88% 2.98% 3.27% # - --------------------------------------------------------------------------------
* Commencement of Operations ** Net investment income per share has been calculated using the average share method # Annualized + Non-annualized The accompanying notes are an integral part of the financial statements. 15 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
International Small Cap Fund ----------------------------------------------- Class C ----------------------------------------------- Six months Year Year Year 3/04/96* Ended Ended Ended Ended to 4/30/00** 10/31/99 10/31/98 10/31/97 10/31/96 (unaudited) - -------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $18.37 $13.66 $13.71 $13.37 $12.50 - -------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.28) (0.31) (0.12) (0.11) (0.01) Net realized and unrealized gain/(loss) on investments and foreign currency 8.72 5.02 0.07 0.45 0.88 ---------------------------------------------- Total from investment operations 8.44 4.71 (0.05) 0.34 0.87 ---------------------------------------------- Distributions Distributions from realized capital gains (4.67) - - - - - -------------------------------------------------------------------------------- Net Asset Value, End of Period $22.14 $18.37 $13.66 $13.71 $13.37 - -------------------------------------------------------------------------------- Total Return 46.44% + 34.48% (0.36%) 2.54% 6.96% + - -------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------- Net assets, end of period (000's) $12,348 $5,972 $6,195 $7,025 $5,517 - -------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.66% # 2.55% 2.55% 2.55% 2.55% # - -------------------------------------------------------------------------------- Ratio of net investment income to average net assets (2.18%) # (1.53) (0.78%) (0.84%) (0.15%) # - -------------------------------------------------------------------------------- Portfolio turnover rate 297% + 202% 54% 75% 67% # - -------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.76% # 2.89% 2.88% 2.96% 3.25% # - --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
International Equity Fund (formerly the International Growth and Income Fund) ------------------------------------------------------------ Class A ------------------------------------------------------------ Six months Year Year Year Year 1/09/95* Ended Ended Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96** 10/31/95 (unaudited) - --------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $11.89 $9.83 $10.81 $11.35 $10.11 $10.00 - --------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.04) 0.02 0.03 0.06 0.09 0.06 Net realized and unrealized gain/(loss) on investments and foreign currency 0.72 2.07 0.02 0.35 1.33 0.08 ---------------------------------------------------------- Total from investment operations 0.68 2.09 0.05 0.41 1.42 0.14 ---------------------------------------------------------- Distributions Dividends from net investment income (0.10) - (0.13) (0.19) (0.08) (0.03) Distributions from realized capital gains (0.92) (0.03) (0.90) (0.76) (0.10) - ---------------------------------------------------------- Total distributions (1.02) (0.03) (1.03) (0.95) (0.18) (0.03) - --------------------------------------------------------------------------------------- Net Asset Value, End of Period $11.55 $11.89 $9.83 $10.81 $11.35 $10.11 - --------------------------------------------------------------------------------------- Total Return 5.63% + 21.33% 0.67% 3.55% 14.25% 1.37% + - --------------------------------------------------------------------------------------- Ratios/Supplemental Data - --------------------------------------------------------------------------------------- Net assets, end of period (000's) $4,716 $3,997 $3,769 $4,461 $4,732 $6,897 - --------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.87% # 1.75% 1.75% 1.75% 1.75% 1.75% # - --------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (0.71%) # 0.18% 0.44% 0.97% 0.84% 0.70% # - --------------------------------------------------------------------------------------- Portfolio turnover rate 32% + 142% 173% 146% 170% 69% - --------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.99% # 1.98% 1.87% 1.96% 1.97% 2.18% # - ---------------------------------------------------------------------------------------
* Commencement of Operations ** Net investment income per share has been calculated using the average share method # Annualized + Non-annualized The accompanying notes are an integral part of the financial statements. 16 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
International Equity Fund ## -------------------------------------------------------------- Class B -------------------------------------------------------------- Six months Year Year Year Year 1/09/95* Ended Ended Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97** 10/31/96** 10/31/95 (unaudited) - ----------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $11.74 $9.77 $10.75 $11.30 $10.10 $10.00 - ----------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.08) (0.05) (0.02) 0.03 0.06 0.01 Net realized and unrealized gain/(loss) on investments and foreign currency 0.71 2.05 0.00 0.31 1.30 0.12 ------------------------------------------------------------ Total from investment operations 0.63 2.00 (0.02) 0.34 1.36 0.13 ------------------------------------------------------------ Distributions Dividends from net investment income (0.02) - (0.06) (0.13) (0.05) (0.03) Distributions from realized capital gains (0.92) (0.03) (0.90) (0.76) (0.11) - ------------------------------------------------------------ Total distributions ((0.94) (0.03) (0.96) (0.89) (0.16) (0.03) - ----------------------------------------------------------------------------------------- Net Asset Value, End of Period $11.43 $11.74 $9.77 $10.75 $11.30 $10.10 - ----------------------------------------------------------------------------------------- Total Return 5.25% + 20.53% (0.03%) 2.92% 13.58% 1.28% + - ----------------------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------------------- Net assets, end of period (000's) $13,853 $14,269 $14,030 $16,334 $15,217 $8,421 - ----------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.53% # 2.40% 2.40% 2.40% 2.40% 2.40% # - ----------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (1.39%) # (0.45%) (0.18%) 0.32% 0.57% 0.15% # - ----------------------------------------------------------------------------------------- Portfolio turnover rate 32% + 142% 173% 146% 170% 69% - ----------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.64% # 2.63% 2.52% 2.54% 2.60% 2.93% # - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- International Equity Fund ## -------------------------------------------------------------- Class C -------------------------------------------------------------- Six months Year Year Year Year 1/09/95* Ended Ended Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97** 10/31/96** 10/31/95 (unaudited) - ----------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $11.74 $9.77 $10.76 $11.31 $10.10 $10.00 - ----------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.08) (0.05) (0.02) 0.03 0.06 0.01 Net realized and unrealized gain/(loss) on investments and foreign currency 0.71 2.05 (0.01) 0.31 1.30 0.12 ------------------------------------------------------------ Total from investment operations 0.63 2.00 (0.03) 0.34 1.36 0.13 ------------------------------------------------------------ Distributions Dividends from net investment income (0.02) - (0.06) (0.13) (0.05) (0.03) Distributions from realized capital gains (0.92) (0.03) (0.90) (0.76) (0.10) - ------------------------------------------------------------ Total distributions ((0.94) (0.03) (0.96) (0.89) (0.15) (0.03) - ----------------------------------------------------------------------------------------- Net Asset Value, End of Period $11.43 $11.74 $9.77 $10.76 $11.31 $10.10 - ----------------------------------------------------------------------------------------- Total Return 5.25% + 20.53% (0.13%) 2.91% 13.63% 1.28% + - ----------------------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------------------- Net assets, end of period (000's) $6,611 $6,680 $7,960 $8,460 $9,076 $6,324 - ----------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.53% # 2.40% 2.40% 2.40% 2.40% 2.40% # - ----------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (1.38%) # (0.49%) (0.19%) 0.32% 0.51% 0.13% # - ----------------------------------------------------------------------------------------- Portfolio turnover rate 32% + 142% 173% 146% 170% 69% - ----------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.64% # 2.62% 2.52% 2.57% 2.60% 2.93% # - 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* Commencement of Operations ** Net investment income per share has been calculated using the average share method # Annualized + Non-annualized ## Formerly the International Growth and Income Fund The accompanying notes are an integral part of the financial statements. 17 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Global Equity Fund ----------------------------------------------------------- Class A ----------------------------------------------------------- Six months Year Year Year 1/09/95 Ended Year Ended Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96* 10/31/95 (unaudited) - ------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $16.12 $16.43 $16.32 $14.50 $13.84 $14.82 - ------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.01) 0.08 0.02 0.06 (0.04) - Net realized and unrealized gain/(loss) on investments and foreign currency (1.89) 0.82 1.34 3.45 0.91 (0.54) ---------------------------------------------------------- Total from investment operations (1.90) 0.90 1.36 3.51 0.87 (0.54) ---------------------------------------------------------- Distributions Dividends from net investment income - - (0.22) (0.05) (0.21) - Distributions from realized capital gains (2.14) (1.21) (1.03) (1.64) - (0.44) ---------------------------------------------------------- Total distributions (2.14) (1.21) (1.25) (1.69) (0.21) (0.44) - ------------------------------------------------------------------------------------- Net Asset Value, End of Period $12.08 $16.12 $16.43 $16.32 $14.50 $13.84 - ------------------------------------------------------------------------------------- Total Return (13.72) + 5.60% 8.90% 26.10% 6.33% (3.52%) - ------------------------------------------------------------------------------------- Ratios/Supplemental Data - ------------------------------------------------------------------------------------- Net assets, end of period (000's) $8,200 $12,757 $31,055 $30,960 $25,924 $23,894 - ------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.85% # 1.75% 1.75% 1.75% 1.75% 1.75% - ------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (0.18) # 0.47% 0.09% 0.33% (0.30%) 0.03% - ------------------------------------------------------------------------------------- Portfolio turnover rate 124% + 38% 20% 28% 165% 57% - ------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.02% # 1.84% 1.75% 1.81% 1.83% 1.92% - -------------------------------------------------------------------------------------
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Global Equity Fund ------------------------------------------------------------ Class B ------------------------------------------------------------ Six months Year Year Year 1/09/95 Ended Year Ended Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96* 10/31/95 (unaudited) - -------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $15.83 $16.24 $16.14 $14.36 $13.73 $14.79 - -------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.06) (0.04) (0.11) (0.05) (0.14) (0.09) Net realized and unrealized gain/(loss) on investments and foreign currency (1.84) 0.84 1.35 3.47 0.91 (0.53) ----------------------------------------------------------- Total from investment operations (1.90) 0.80 1.24 3.42 0.77 (0.62) ----------------------------------------------------------- Distributions Dividends from net investment income - - (0.11) (0.14) - Distributions from realized capital gains (2.14) (1.21) (1.03) (1.64) - (0.44) ----------------------------------------------------------- Total distributions (2.14) (1.21) (1.14) (1.64) (0.14) (0.44) - -------------------------------------------------------------------------------------- Net Asset Value, End of Period $11.79 $15.83 $16.24 $16.14 $14.36 $13.73 - -------------------------------------------------------------------------------------- Total Return (14.00%) + 5.01% 8.17% 25.63% 5.64% (4.09%) - -------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------- Net assets, end of period (000's) $16,314 $25,381 $30,287 $31,833 $25,661 $23,317 - -------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.51% # 2.40% 2.40% 2.40% 2.40% 2.40% - -------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (0.83%) # (0.25%) (0.55%) (0.32%) (0.95%) (0.61%) - -------------------------------------------------------------------------------------- Portfolio turnover rate 124% + 38% 20% 28% 165% 57% - -------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.67% # 2.50% 2.40% 2.47% 2.48% 2.58% - --------------------------------------------------------------------------------------
# Annualized + Non-annualized * Net investment income per share has been calculated using the average share method The accompanying notes are an integral part of the financial statements. 18 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Global Equity Fund ------------------------------------------------------------- Class C ------------------------------------------------------------- Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96** 10/31/95 (unaudited) - --------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $15.89 $16.30 $16.19 $14.41 $13.73 $14.79 - --------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.06) (0.04) (0.10) (0.05) (0.14) (0.09) Net realized and unrealized gain/(loss) on investments and foreign currency (1.85) 0.84 1.35 3.47 0.92 (0.53) ------------------------------------------------------------ Total from investment operations (1.91) 0.80 1.25 3.42 0.78 (0.62) ------------------------------------------------------------ Distributions Dividends from net investment income - - (0.11) - (0.10) - Distributions from realized capital gains (2.14) (1.21) (1.03) (1.64) - (0.44) ------------------------------------------------------------ Total distributions (2.14) (1.21) (1.14) (1.64) (0.10) (0.44) - --------------------------------------------------------------------------------------- Net Asset Value, End of Period $11.84 $15.89 $16.30 $16.19 $14.41 $13.73 - --------------------------------------------------------------------------------------- Total Return (14.01%) + 4.99% 8.21% 25.54% 5.70% (4.09%) - --------------------------------------------------------------------------------------- Ratios/Supplemental Data - --------------------------------------------------------------------------------------- Net assets, end of period (000's) $27,732 $45,201 $57,774 $61,245 $64,830 $83,340 - --------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.51% # 2.40% 2.40% 2.40% 2.40% 2.40% - --------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (0.83%) # (0.24%) (0.56%) (0.32%) (0.95%) (0.64%) - --------------------------------------------------------------------------------------- Portfolio turnover rate 124% + 38% 20% 28% 165% 57% - --------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.67% # 2.50% 2.40% 2.46% 2.48% 2.53% - ---------------------------------------------------------------------------------------
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Small Cap Growth Fund (formerly Emerging Growth Fund) ------------------------------- Class A ------------------------------- Six months Year 1/06/98* Ended Ended to 4/30/00** 10/31/99** 10/31/98 (unaudited) - ------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $12.81 $8.88 $10.00 - ------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.11) (0.15) (0.08) Net realized and unrealized gain/(loss) on investments and foreign currency 5.55 4.08 (1.04) ------------------------------- Total from investment operations 5.44 3.93 (1.12) ------------------------------- Distributions Distributions from capital gains (0.08) - ------------------------------------------------------------------------------ Net Asset Value, End of Period $18.17 $12.81 $8.88 - ------------------------------------------------------------------------------ Total Return 42.57% + 44.26% (11.20%) - ------------------------------------------------------------------------------ Ratios/Supplemental Data - ------------------------------------------------------------------------------ Net assets, end of period (000's) $1,106 $224 $146 - ------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.80% # 1.70% 1.70% - ------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (1.15%) # (1.43%) (1.00%) - ------------------------------------------------------------------------------ Portfolio turnover rate 56% + 129% 52% - ------------------------------------------------------------------------------ Expense ratio before expense reimbursement by adviser 3.05% # 6.96% 15.48% - ------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized ** Net investment income per share has been calculated using the average share method The accompanying notes are an integral part of the financial statements. 19 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Small Cap Growth Fund (formerly Emerging Growth Fund) ----------------------------------------------------------------- Class B Class C ------------------------------- ------------------------------- Six months Year 1/06/98* Six months Year 1/06/98* Ended Ended to Ended Ended to 4/30/00** 10/31/99** 10/31/98 4/30/00** 10/31/99** 10/31/98 (unaudited) - --------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $12.57 $8.83 $10.00 $12.57 $8.84 $10.00 - --------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.17) (0.21) (0.12) (0.17) (0.21) (0.12) Net realized and unrealized gain/(loss) on investments and foreign currency 5.43 3.95 (1.05) 5.44 3.94 (1.04) ----------------------------------------------------------------- Total from investment operations 5.26 3.74 (1.17) 5.27 3.73 (1.16) ----------------------------------------------------------------- Distributions Distributions from capital gains (0.08) (0.08) - --------------------------------------------------------------------------------------------- Net Asset Value, End of Period $17.75 $12.57 $8.83 $17.76 $12.57 $8.84 - --------------------------------------------------------------------------------------------- Total Return 41.95% + 42.36% (11.70%) + 42.03% 42.19% (11.60%) - --------------------------------------------------------------------------------------------- Ratios/Supplemental Data - --------------------------------------------------------------------------------------------- Net assets, end of period (000's) $2,208 $660 $263 $2,367 $440 $238 - --------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.45% # 2.35% 2.35% # 2.45% # 2.35% 2.35% # - --------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (1.80%) # (2.04%) (1.76%) # (1.79%) # (2.03%) (1.67%) # - --------------------------------------------------------------------------------------------- Portfolio turnover rate 56% + 129% 52% # 56% + 129% 52% # - --------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 3.73% # 7.58% 16.48% # 3.70% # 7.60% 15.78% # - ---------------------------------------------------------------------------------------------
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Mid Cap Growth Fund (formerly Small/Mid Cap Fund) ------------------------------------------------- Class A ------------------------------------------------- Six months Year Year 3/04/96* Ended Year Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96 (unaudited) - --------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $18.52 $16.09 $15.51 $12.62 $12.50 - --------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.14) (0.21) (0.15) (0.14) (0.02) Net realized and unrealized gain/(loss) on investments and foreign currency 4.81 4.12 0.97 3.03 0.14 ------------------------------------------------ Total from investment operations 4.67 3.91 0.82 2.89 0.12 ------------------------------------------------ Distributions Distributions from realized capital gains (3.18) (1.48) (0.24) - - - --------------------------------------------------------------------------------- Net Asset Value, End of Period $20.01 $18.52 $16.09 $15.51 $12.62 - --------------------------------------------------------------------------------- Total Return 25.98% + 25.50% 5.51% 22.90% 0.96% + - --------------------------------------------------------------------------------- Ratios/Supplemental Data - --------------------------------------------------------------------------------- Net assets, end of period (000's) $7,728 $5,970 $4,814 $4,170 $2,966 - --------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.76% # 1.68% 1.68% 1.68% 1.68% # - --------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (1.39%) # (1.15%) (0.90%) (1.02%) (0.40%) # - --------------------------------------------------------------------------------- Portfolio turnover rate 174% + 181% 162% 145% 92% # - --------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.91% # 1.89% 1.93% 2.24% 2.69% # - ---------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized ** Net investment income per share has been calculated using the average share method The accompanying notes are an integral part of the financial statements. 20 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Mid Cap Growth Fund (formerly Small/Mid Cap Fund) --------------------------------------------------- Class B --------------------------------------------------- Six months Year Year Year 3/04/96* Ended Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97** 10/31/96 (unaudited) - -------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $17.99 $15.77 $15.33 $12.58 $12.50 - -------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.20) (0.32) (0.25) (0.23) (0.05) Net realized and unrealized gain/(loss) on investments and foreign currency 4.66 4.02 0.93 2.98 0.13 -------------------------------------------------- Total from investment operations 4.46 3.70 0.68 2.75 0.08 -------------------------------------------------- Distributions Distributions from realized capital gains (3.18) (1.48) (0.24) - - - -------------------------------------------------------------------------------- Net Asset Value, End of Period $19.27 $17.99 $15.77 $15.33 $12.58 - -------------------------------------------------------------------------------- Total Return 25.53% + 24.62% 4.65% 21.86% 0.64% + - -------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------- Net assets, end of period (000's) $22,411 $17,184 $13,972 $11,802 $6,659 - -------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.42% # 2.33% 2.33% 2.33% 2.33% # - -------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (2.04%) # (1.80%) (1.55%) (1.67%) (1.05%) # - -------------------------------------------------------------------------------- Portfolio turnover rate 174% + 181% 162% 145% 92% # - -------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.57% # 2.54% 2.58% 2.79% 3.05% # - --------------------------------------------------------------------------------
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Mid Cap Growth Fund (formerly Small/Mid Cap Fund) --------------------------------------------------- Class C --------------------------------------------------- Six months Year Year Year 3/04/96* Ended Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97** 10/31/96 (unaudited) - -------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $18.02 $15.79 $15.35 $12.59 $12.50 - -------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.20) (0.32) (0.25) (0.23) (0.05) Net realized and unrealized gain/(loss) on investments and foreign currency 4.67 4.03 0.93 2.99 0.14 -------------------------------------------------- Total from investment operations 4.47 3.71 0.68 2.76 0.09 -------------------------------------------------- Distributions Distributions from realized capital gains (3.18) (1.48) (0.24) - - - -------------------------------------------------------------------------------- Net Asset Value, End of Period $19.31 $18.02 $15.79 $15.35 $12.59 - -------------------------------------------------------------------------------- Total Return 25.54% + 24.65% 4.64% 21.92% 0.72% + - -------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------- Net assets, end of period (000's) $22,822 $18,939 $16,221 $13,471 $8,241 - -------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.42% # 2.33% 2.33% 2.33% 2.33% # - -------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (2.04%) # (1.80%) (1.55%) (1.67%) (1.05%) # - -------------------------------------------------------------------------------- Portfolio turnover rate 174% + 181% 162% 145% 92% # - -------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.57% # 2.54% 2.58% 2.78% 3.04% # - --------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized ** Net investment income per share has been calculated using the average share method The accompanying notes are an integral part of the financial statements. 21 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Large Cap Growth Fund (formerly Growth Equity Fund) ------------------------------------------------------------ Class A ------------------------------------------------------------ Six months Year Year Year 3/04/96* Ended Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96 (unaudited) - ----------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $21.44 $17.73 $17.01 $13.78 $12.50 - ----------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.13) (0.19) (0.07) (0.03) 0.28 Net realized and unrealized gain/(loss) on investments and foreign currency 3.55 5.05 2.22 3.45 1.00 ------------------------------------------------------------ Total from investment operations 3.42 4.86 2.15 3.42 1.28 ------------------------------------------------------------ Distributions Dividends from net investment income - - - (0.19) - Distributions from capital gains (2.96) (1.15) (1.43) - - ------------------------------------------------------------ Total distributions (2.96) (1.15) (1.43) (0.19) - ----------------------------------------------------------------------------------------- Net Asset Value, End of Period $21.90 $21.44 $17.73 $17.01 $13.78 - ----------------------------------------------------------------------------------------- Total Return 15.97% + 28.57% 13.85% 25.13% 10.24% + - ----------------------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------------------- Net assets, end of period (000's) $6,633 $5,656 $3,919 $3,053 $2,244 - ----------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.75% # 1.65% 1.65% 1.65% 1.65% # - ----------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (1.12%) # (0.94) (0.43%) (0.17%) 4.11% # - ----------------------------------------------------------------------------------------- Portfolio turnover rate 89% + 145% 115% 181% 450% # - ----------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.85% # 1.90% 1.91% 2.28% 2.71% # - -----------------------------------------------------------------------------------------
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Large Cap Growth Fund (formerly Growth Equity Fund) ------------------------------------------------------------- Class B ------------------------------------------------------------- Six months Year Year Year 3/04/96* Ended Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96 (unaudited) - ------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $20.96 $17.46 $16.90 $13.73 $12.50 - ------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.20) (0.31) (0.18) (0.13) 0.24 Net realized and unrealized gain/(loss) on investments and foreign currency 3.47 4.96 2.17 3.46 0.99 ------------------------------------------------------------- Total from investment operations 3.27 4.65 1.99 3.33 1.23 ------------------------------------------------------------- Distributions Dividends from net investment income - - - (0.16) - Distributions from capital gains (2.96) (1.15) (1.43) - - ------------------------------------------------------------- Total distributions (2.96) (1.15) (1.43) (0.16) - ------------------------------------------------------------------------------------------ Net Asset Value, End of Period $21.27 $20.96 $17.46 $16.90 $13.73 - ------------------------------------------------------------------------------------------ Total Return 15.58% + 27.77% 12.93% 24.50% 9.84% + - ------------------------------------------------------------------------------------------ Ratios/Supplemental Data - ------------------------------------------------------------------------------------------ Net assets, end of period (000's) $23,250 $17,171 $11,659 $9,040 $4,748 - ------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 2.40% # 2.30% 2.30% 2.30% 2.30% # - ------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (1.77%) # (1.58) (1.07%) (0.82%) 4.18% # - ------------------------------------------------------------------------------------------ Portfolio turnover rate 89% + 145% 115% 181% 450% # - ------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by adviser 2.50% # 2.52% 2.56% 2.78% 3.06% # - ------------------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized ** Net investment income per share has been calculated using the average share method The accompanying notes are an integral part of the financial statements. 22 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Large Cap Growth Fund (formerly Growth Equity Fund) ------------------------------------------------- Class C ------------------------------------------------- Six months Year Year Year 3/04/96* Ended Ended Ended Ended to 4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96 (unaudited) - --------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $20.93 $17.44 $16.89 $13.73 $12.50 - --------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.20) (0.31) (0.20) (0.13) 0.24 Net realized and unrealized gain/(loss) on investments and foreign currency 3.48 4.95 2.18 3.46 0.99 ----------------------------------------------- Total from investment operations 3.28 4.64 1.98 3.33 1.23 ----------------------------------------------- Distributions Dividends from net investment income - - - (0.17) - Distributions from capital gains (2.96) (1.15) (1.43) - - ----------------------------------------------- Total distributions (2.96) (1.15) (1.43) (0.17) - - --------------------------------------------------------------------------------- Net Asset Value, End of Period $21.25 $20.93 $17.44 $16.89 $13.73 - --------------------------------------------------------------------------------- Total Return 15.66% + 27.75% 12.87% 24.50% 9.84% + - --------------------------------------------------------------------------------- Ratios/Supplemental Data - --------------------------------------------------------------------------------- Net assets, end of period (000's) $26,525 $19,463 $12,965 $12,766 $6,494 - --------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.40% # 2.30% 2.30% 2.30% 2.30% # - --------------------------------------------------------------------------------- Ratio of net investment income to average net assets (1.77%) # (1.58%) (1.06%) (0.82%) 4.13% # - --------------------------------------------------------------------------------- Portfolio turnover rate 89% + 145% 115% 181% 450% # - --------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.51% # 2.52% 2.56% 2.75% 2.96% # - ---------------------------------------------------------------------------------
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Tax-Sensitive Equity Fund ------------------------------- Class A ------------------------------- Six months Year 1/06/98* Ended Ended to 4/30/00** 10/31/99** 10/31/98 (unaudited) - ------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $9.49 $9.07 $10.00 - ------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.02) (0.05) (0.01) Net realized and unrealized gain/(loss) on investments and foreign currency 0.51 0.47 (0.92) ------------------------------ Total from investment operations 0.49 0.42 (0.93) - ------------------------------------------------------------------------------- Net Asset Value, End of Period $9.98 $9.49 $9.07 - ------------------------------------------------------------------------------- Total Return 5.16% + 4.63% (9.30%) + - ------------------------------------------------------------------------------- Ratios/Supplemental Data - ------------------------------------------------------------------------------- Net assets, end of period (000's) $277 $ 1,526 $4,149 - ------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.60% # 1.60% 1.60% # - ------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (0.47%) # (0.48%) (0.40%) # - ------------------------------------------------------------------------------- Portfolio turnover rate 4% + 56% 38% + - ------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.53% # 2.05% 2.51% # - -------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized ** Net investment income per share has been calculated using the average share method The accompanying notes are an integral part of the financial statements. 23 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Tax-Sensitive Equity Fund --------------------------------------------------------------------- Class B Class C -------------------------------- -------------------------------- Six months Year 1/06/98* Six months Year 1/06/98* Ended Ended to Ended Ended to 4/30/00** 10/31/99 ** 10/31/98 4/30/00** 10/31/99 ** 10/31/98 (unaudited) - ------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $9.36 $9.04 $10.00 $9.35 $9.04 $10.00 - ------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.05) (0.11) (0.04) *** (0.05) (0.11) (0.03) ** Net realized and unrealized gain/(loss) on investments and foreign currency 0.48 0.43 (0.92) 0.46 0.42 (0.93) -------------------------------------------------------------------- Total from investment operations 0.43 0.32 (0.96) 0.41 0.31 (0.96) - ------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $9.79 $9.36 $9.04 $9.76 $9.35 $9.04 - ------------------------------------------------------------------------------------------------- Total Return 4.59% + 3.54% (9.60%) + 4.39% + 3.43% (9.60%) + - ------------------------------------------------------------------------------------------------- Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $2,450 $3,724 $2,900 $2,627 $3,723 $3,286 - ------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.25% # 2.25% 2.25% # 2.25% # 2.25% 2.25% # - ------------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (1.13%) # (1.14%) (1.80%) # (1.13%) # (1.14%) (1.84%) # - ------------------------------------------------------------------------------------------------- Portfolio turnover rate 4% + 56% 38% + 4% + 56% 38% + - ------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 3.35% # 2.71% 3.24% # 3.37% # 2.71% 3.16% # - -------------------------------------------------------------------------------------------------
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Growth & Income Fund -------------------------------------------------------------- Class A -------------------------------------------------------------- Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99 ** 10/31/98 10/31/97 10/31/96 10/31/95 ** (unaudited) - ---------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $28.78 $24.26 $21.77 $17.56 $14.72 $13.09 - ---------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.03) 0.03 0.08 0.14 0.18 0.26 Net realized and unrealized gain/(loss) on investments and foreign currency 1.58 5.45 4.14 5.26 2.99 1.90 ---------------------------------------------------------- Total from investment operations 1.55 5.48 4.22 5.40 3.17 2.16 ---------------------------------------------------------- Distributions Dividends from net investment income - - - (0.15) (0.21) (0.23) Distributions from realized capital gains (2.47) (0.96) (1.70) (1.04) (0.12) (0.30) Distributions in excess of net investment income - - (0.03) - - - ---------------------------------------------------------- Total distributions (2.47) (0.96) (1.73) (1.19) (0.33) (0.53) - ---------------------------------------------------------------------------------------- Net Asset Value, End of Period $27.86 $28.78 $24.26 $21.77 $17.56 $14.72 - ---------------------------------------------------------------------------------------- Total Return 5.41% + 23.11% 20.82% 31.95% 21.84% 17.28% - ---------------------------------------------------------------------------------------- Ratios/Supplemental Data - ---------------------------------------------------------------------------------------- Net assets, end of period (000's) $37,294 $37,210 $42,916 $34,186 $18,272 $12,180 - ---------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.44% # 1.34% 1.34% 1.34% 1.34% 1.34% - ---------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (0.25%) # 0.11% 0.34% 0.66% 1.10% 1.91% - ---------------------------------------------------------------------------------------- Portfolio turnover rate 10% + 28% 18% 39% 49% 40% - ---------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.62% # 1.49% 1.45% 1.50% 1.56% 1.69% - ----------------------------------------------------------------------------------------
* Commencement of Operations ** Net investment income per share has been calculated using the average share method + Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 24 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Growth & Income Fund ------------------------------------------------------------ Class B ------------------------------------------------------------ Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96* 10/31/95* (unaudited) - -------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $28.28 $24.01 $21.67 $17.50 $14.69 $13.08 - -------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.12) (0.15) (0.07) 0.01 0.07 0.16 Net realized and unrealized gain/(loss) on investments and foreign currency 1.55 5.38 4.11 5.23 2.99 1.94 ---------------------------------------------------------- Total from investment operations 1.43 5.23 4.04 5.24 3.06 2.10 ---------------------------------------------------------- Distributions Dividends from net investment income - - - (0.03) (0.13) (0.19) Distributions from realized capital gains (2.47) (0.96) (1.70) (1.04) (0.12) (0.30) ---------------------------------------------------------- Total distributions (2.47) (0.96) (1.70) (1.07) (0.25) (0.49) - -------------------------------------------------------------------------------------- Net Asset Value, End of Period $27.24 $28.28 $24.01 $21.67 $17.50 $14.69 - -------------------------------------------------------------------------------------- Total Return 5.06% + 22.28% 20.04% 31.40% 21.08% 16.73% - -------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------- Net assets, end of period (000's) $101,640 $104,695 $75,574 $54,871 $34,740 $19,052 - -------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.09% # 1.99% 1.99% 1.99% 1.99% 1.99% - -------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (0.90%) # (0.54%) (0.32%) 0.01% 0.45% 1.14% - -------------------------------------------------------------------------------------- Portfolio turnover rate 10% + 28% 18% 39% 49% 40% - -------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.27% # 2.13% 2.10% 2.15% 2.20% 2.33% - --------------------------------------------------------------------------------------
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Growth & Income Fund ---------------------------------------------------------- Class C ---------------------------------------------------------- Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95 (unaudited) - ------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $28.39 $24.10 $21.75 $17.56 $14.71 $13.08 - ------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.12) (0.15) (0.07) 0.01 0.07 0.18 Net realized and unrealized gain/(loss) on investments and foreign currency 1.56 5.40 4.12 5.25 3.00 1.90 --------------------------------------------------------- Total from investment operations 1.44 5.25 4.05 5.26 3.07 2.08 --------------------------------------------------------- Distributions Dividends from net investment income - - - (0.03) (0.10) (0.15) Distributions from realized capital gains (2.47) (0.96) (1.70) (1.04) (0.12) (0.30) --------------------------------------------------------- Total distributions (2.47) (0.96) (1.70) (1.07) (0.22) (0.45) - ------------------------------------------------------------------------------------ Net Asset Value, End of Period $27.36 $28.39 $24.10 $21.75 $17.56 $14.71 - ------------------------------------------------------------------------------------ Total Return 5.08% + 22.28% 20.00% 31.37% 21.12% 16.56% - ------------------------------------------------------------------------------------ Ratios/Supplemental Data - ------------------------------------------------------------------------------------ Net assets, end of period (000's) $152,551 $156,056 $122,395 $98,250 $74,825 $63,154 - ------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 2.09% # 1.99% 1.99% 1.99% 1.99% 1.99% - ------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (0.90%) # (0.54%) (0.31%) 0.01% 0.45% 1.26% - ------------------------------------------------------------------------------------ Portfolio turnover rate 10% + 28% 18% 39% 49% 40% - ------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by adviser 2.27% # 2.13% 2.10% 2.13% 2.20% 2.26% - ------------------------------------------------------------------------------------
* Net investment income per share has been calculated using the average share method + Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 25 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Equity-Income Fund ----------------------------------------------------------- Class A ----------------------------------------------------------- Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95* (unaudited) - ------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $16.91 $17.64 $17.44 $17.37 $15.94 $14.78 - ------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.07 0.22 0.29 0.33 0.16 0.12 Net realized and unrealized gain/(loss) on investments and foreign currency (1.79) 0.46 1.46 3.59 2.69 1.83 --------------------------------------------------------- Total from investment operations (1.72) 0.68 1.75 3.92 2.85 1.95 --------------------------------------------------------- Distributions Dividends from net investment income (0.19) (0.29) (0.33) (0.18) (0.14) - Distributions from realized capital gains (3.37) (1.12) (1.22) (3.67) (1.28) (0.79) --------------------------------------------------------- Total distributions (3.56) (1.41) (1.55) (3.85) (1.42) (0.79) - ------------------------------------------------------------------------------------- Net Asset Value, End of Period $11.63 $16.91 $17.64 $17.44 $17.37 $15.94 - ------------------------------------------------------------------------------------- Total Return (10.82%) + 3.93% 10.55% 27.24% 19.23% 14.22% - ------------------------------------------------------------------------------------- Ratios/Supplemental Data - ------------------------------------------------------------------------------------- Net assets, end of period (000's) $8,858 $13,990 $36,661 $36,334 $28,470 $22,026 - ------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.45% # 1.40% 1.42% 1.34% 1.34% 1.34% - ------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 1.07% # 1.30% 1.57% 2.01% 0.98% 0.79% - ------------------------------------------------------------------------------------- Portfolio turnover rate 23% + 73% 22% 36% 169% 54% - ------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.76% # 1.58% 1.51% 1.55% 1.55% 1.62% - -------------------------------------------------------------------------------------
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Equity-Income Fund ----------------------------------------------------------- Class B ----------------------------------------------------------- Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95* (unaudited) - ------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $16.71 $17.43 $17.24 $17.22 $15.84 $14.77 - ------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.03 0.10 0.16 0.23 0.06 0.02 Net realized and unrealized gain/(loss) on investments and foreign currency (1.78) 0.47 1.46 3.54 2.69 1.84 --------------------------------------------------------- Total from investment operations (1.75) 0.57 1.62 3.77 2.75 1.86 --------------------------------------------------------- Distributions Dividends from net investment income (0.09) (0.17) (0.21) (0.08) (0.09) - Distributions from realized capital gains (3.37) (1.12) (1.22) (3.67) (1.28) (0.79) --------------------------------------------------------- Total distributions (3.46) (1.29) (1.43) (3.75) (1.37) (0.79) - ------------------------------------------------------------------------------------- Net Asset Value, End of Period $11.50 $16.71 $17.43 $17.24 $17.22 $15.84 - ------------------------------------------------------------------------------------- Total Return (11.18%) + 3.30% 9.81% 26.29% 18.59% 13.58% - ------------------------------------------------------------------------------------- Ratios/Supplemental Data - ------------------------------------------------------------------------------------- Net assets, end of period (000's) $18,267 $31,659 $38,954 $36,191 $27,058 $19,874 - ------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.11% # 2.04% 2.07% 1.99% 1.99% 1.99% - ------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 0.43% # 0.58% 0.93% 1.36% 0.33% 0.13% - ------------------------------------------------------------------------------------- Portfolio turnover rate 23% + 73% 22% 36% 169% 54% - ------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.41% # 2.23% 2.16% 2.21% 2.20% 2.32% - -------------------------------------------------------------------------------------
* Net investment income per share has been calculated using the average share method + Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 26 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Equity-Income Fund ----------------------------------------------------------- Class C ----------------------------------------------------------- Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95* (unaudited) - ------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $16.80 $17.53 $17.33 $17.27 $15.84 $14.77 - ------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.03 0.10 0.17 0.23 0.06 0.02 Net realized and unrealized gain/(loss) on investments and foreign currency (1.78) 0.46 1.46 3.56 2.69 1.84 --------------------------------------------------------- Total from investment operations (1.75) 0.56 1.63 3.79 2.75 1.86 --------------------------------------------------------- Distributions Dividends from net investment income (0.09) (0.17) (0.21) (0.06) (0.04) - Distributions from realized capital gains (3.37) (1.12) (1.22) (3.67) (1.28) (0.79) --------------------------------------------------------- Total distributions (3.46) (1.29) (1.43) (3.73) (1.32) (0.79) - ------------------------------------------------------------------------------------- Net Asset Value, End of Period $11.59 $16.80 $17.53 $17.33 $17.27 $15.84 - ------------------------------------------------------------------------------------- Total Return (11.11%) + 3.22% 9.83% 26.33% 18.53% 13.58% - ------------------------------------------------------------------------------------- Ratios/Supplemental Data - ------------------------------------------------------------------------------------- Net assets, end of period (000's) $41,768 $70,200 $95,986 $94,649 $83,855 $83,719 - ------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.11% # 2.04% 2.07% 1.99% 1.99% 1.99% - ------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 0.42% # 0.59% 0.93% 1.36% 0.33% 0.15% - ------------------------------------------------------------------------------------- Portfolio turnover rate 23% + 73% 22% 36% 169% 54% - ------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.41% # 2.23% 2.10% 2.19% 2.20% 2.23% - -------------------------------------------------------------------------------------
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Balanced Fund ----------------------------------------------------------- Class A ----------------------------------------------------------- Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96* 10/31/95* (unaudited) - ------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $10.56 $11.48 $12.58 $12.33 $12.02 $11.13 - ------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.07 0.24 0.25 0.34 0.39 0.38 Net realized and unrealized gain/(loss) on investments and foreign currency 0.07 (0.09) 1.04 1.52 1.07 1.35 --------------------------------------------------------- Total from investment operations 0.14 0.15 1.29 1.86 1.46 1.73 --------------------------------------------------------- Distributions Dividends from net investment income (0.28) (0.23) (0.32) (0.45) (0.40) (0.32) Distributions from realized capital gains (1.31) (0.84) (2.07) (1.16) (0.75) (0.52) --------------------------------------------------------- Total distributions (1.59) (1.07) (2.39) (1.61) (1.15) (0.84) - ------------------------------------------------------------------------------------- Net Asset Value, End of Period $9.11 $10.56 $11.48 $12.58 $12.33 $12.02 - ------------------------------------------------------------------------------------- Total Return 2.08% + 1.20% 12.42% 17.01% 13.10% 16.95% - ------------------------------------------------------------------------------------- Ratios/Supplemental Data - ------------------------------------------------------------------------------------- Net assets, end of period (000's) $4,754 $5,936 $14,415 $12,294 $10,873 $10,033 - ------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.49% # 1.39% 1.39% 1.34% 1.34% 1.34% - ------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 1.54% # 2.18% 2.11% 2.74% 3.32% 3.39% - ------------------------------------------------------------------------------------- Portfolio turnover rate 167% + 198% 185% 211% 253% 226% - ------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.79% # 1.60% 1.53% 1.59% 1.55% 1.69% - -------------------------------------------------------------------------------------
* Net investment income per share has been calculated using the average share method + Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 27 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Balanced Fund ------------------------------------------------------------ Class B ------------------------------------------------------------ Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99* 10/31/98 10/31/97* 10/31/96* 10/31/95* (unaudited) - -------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $10.49 $11.40 $12.49 $12.26 $11.98 $11.12 - -------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.04 0.18 0.18 0.25 0.31 0.30 Net realized and unrealized gain/(loss) on investments and foreign currency 0.07 (0.10) 1.04 1.53 1.07 1.36 --------------------------------------------------------- Total from investment operations 0.11 0.08 1.22 1.78 1.38 1.66 --------------------------------------------------------- Distributions Dividends from net investment income (0.22) (0.15) (0.24) (0.39) (0.35) (0.28) Distributions from realized capital gains (1.31) (0.84) (2.07) (1.16) (0.75) (0.52) --------------------------------------------------------- Total distributions (1.53) (0.99) (2.31) (1.55) (1.10) (0.80) - -------------------------------------------------------------------------------------- Net Asset Value, End of Period $9.07 $10.49 $11.40 $12.49 $12.26 $11.98 - -------------------------------------------------------------------------------------- Total Return 1.69% + 0.57% 11.71% 16.27% 12.35% 16.31% - -------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------- Net assets, end of period (000's) $9,709 $13,958 $18,929 $17,140 $16,219 $9,875 - -------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.14% # 2.04% 2.04% 1.99% 1.99% 1.99% - -------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 0.91% # 1.60% 1.46% 2.09% 2.67% 2.69% - -------------------------------------------------------------------------------------- Portfolio turnover rate 167% + 198% 185% 211% 253% 226% - -------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.44% # 2.25% 2.18% 2.23% 2.20% 2.37% - --------------------------------------------------------------------------------------
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Balanced Fund ---------------------------------------------------------- Class C ---------------------------------------------------------- Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95* (unaudited) - ------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $10.63 $11.54 $12.62 $12.35 $12.02 $11.12 - ------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.04 0.17 0.18 0.25 0.32 0.31 Net realized and unrealized gain/(loss) on investments and foreign currency 0.08 (0.09) 1.05 1.54 1.07 1.35 -------------------------------------------------------- Total from investment operations 0.12 0.08 1.23 1.79 1.39 1.66 -------------------------------------------------------- Distributions Dividends from net investment income (0.22) (0.15) (0.24) (0.36) (0.31) (0.24) Distributions from realized capital gains (1.31) (0.84) (2.07) (1.16) (0.75) (0.52) -------------------------------------------------------- Total distributions (1.53) (0.99) (2.31) (1.52) (1.06) (0.76) - ------------------------------------------------------------------------------------ Net Asset Value, End of Period $9.22 $10.63 $11.54 $12.62 $12.35 $12.02 - ------------------------------------------------------------------------------------ Total Return 1.77% + 0.58% 11.68% 16.21% 12.41% 16.25% - ------------------------------------------------------------------------------------ Ratios/Supplemental Data - ------------------------------------------------------------------------------------ Net assets, end of period (000's) $41,734 $53,669 $65,049 $68,261 $72,821 $80,626 - ------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 2.14% # 2.04% 2.04% 1.99% 1.99% 1.99% - ------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 0.90% # 1.55% 1.47% 2.09% 2.67% 2.76% - ------------------------------------------------------------------------------------ Portfolio turnover rate 167% + 198% 185% 211% 253% 226% - ------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by adviser 2.44% # 2.25% 2.18% 2.20% 2.20% 2.24% - ------------------------------------------------------------------------------------
* Net investment income per share has been calculated using the average share method + Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 28 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Strategic Income Fund --------------------------------------------------------- Class A --------------------------------------------------------- Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95 (unaudited) - ----------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $8.40 $8.99 $9.76 $9.80 $9.07 $8.90 - ----------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.39 0.72 0.67 0.70 0.80 0.78 Net realized and unrealized gain/(loss) on investments and foreign currency (0.23) (0.53) (0.63) 0.28 0.72 0.18 -------------------------------------------------------- Total from investment operations (0.16) 0.19 0.04 0.98 1.52 0.96 -------------------------------------------------------- Distributions Dividends from net investment income (0.39) (0.73) (0.67) (0.84) (0.79) (0.79) Distributions from realized capital gains - (0.05) (0.14) (0.18) - - -------------------------------------------------------- Total distributions (0.39) (0.78) (0.81) (1.02) (0.79) (0.79) - ----------------------------------------------------------------------------------- Net Asset Value, End of Period $8.17 $8.40 $8.99 $9.76 $9.80 $9.07 - ----------------------------------------------------------------------------------- Total Return 1.92% + 2.10% 0.22% 10.57% 17.35% 11.43% - ----------------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------------- Net assets, end of period (000's) $6,948 $8,997 $15,296 $15,924 $13,382 $10,041 - ----------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.55% # 1.50% 1.50% 1.50% 1.50% 1.07% - ----------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 9.26% # 8.21% 7.02% 7.25% 8.28% 9.08% - ----------------------------------------------------------------------------------- Portfolio turnover rate 41% + 119% 162% 193% 68% 180% - ----------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.85% # 1.67% 1.56% 1.61% 1.65% 1.69% - ----------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------- Strategic Income Fund --------------------------------------------------------- Class B --------------------------------------------------------- Six months Year Year Year Year Year Ended Ended Ended Ended Ended Ended 4/30/00* 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95 (unaudited) - ----------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $8.41 $8.99 $9.76 $9.80 $9.07 $8.90 - ----------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.36 0.66 0.61 0.64 0.73 0.73 Net realized and unrealized gain/(loss) on investments and foreign currency (0.23) (0.52) (0.63) 0.28 0.73 0.17 -------------------------------------------------------- Total from investment operations (0.13) 0.14 (0.02) 0.92 1.46 0.90 -------------------------------------------------------- Distributions Dividends from net investment income (0.37) (0.67) (0.61) (0.78) (0.73) (0.73) Distributions from realized capital gains - (0.05) (0.14) (0.18) - - -------------------------------------------------------- Total distributions (0.37) (0.72) (0.75) (0.96) (0.73) (0.73) - ----------------------------------------------------------------------------------- Net Asset Value, End of Period $8.17 $8.41 $8.99 $9.76 $9.80 $9.07 - ----------------------------------------------------------------------------------- Total Return 1.48% + 1.56% (0.43%) 9.86% 16.59% 10.72% - ----------------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------------- Net assets, end of period (000's) $17,071 $21,340 $29,210 $34,590 $30,890 $20,672 - ----------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.20% # 2.15% 2.15% 2.15% 2.15% 1.95% - ----------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 8.55% # 7.58% 6.39% 6.60% 7.63% 8.10% - ----------------------------------------------------------------------------------- Portfolio turnover rate 41% + 119% 162% 193% 68% 180% - ----------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.50% # 2.32 2.21% 2.23% 2.27% 2.38% - -----------------------------------------------------------------------------------
* Net investment income per share has been calculated using the average share method + Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 29 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Strategic Income Fund --------------------------------------------------------- Class C --------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00** Ended Ended Ended Ended Ended (unaudited) 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95 - ----------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $8.41 $8.99 $9.76 $9.80 $9.07 $8.90 - ----------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.36 0.66 0.61 0.64 0.73 0.73 Net realized and unrealized gain/(loss) on investments and foreign currency (0.23) (0.52) (0.63) 0.28 0.73 0.17 -------------------------------------------------------- Total from investment operations (0.13) 0.14 (0.02) 0.92 1.46 0.90 -------------------------------------------------------- Distributions Dividends from net investment income (0.37) (0.67) (0.61) (0.78) (0.73) (0.73) Distributions from realized capital gains - (0.05) (0.14) (0.18) - - -------------------------------------------------------- Total distributions (0.37) (0.72) (0.75) (0.96) (0.73) (0.73) - ----------------------------------------------------------------------------------- Net Asset Value, End of Period $8.17 $8.41 $8.99 $9.76 $9.80 $9.07 - ----------------------------------------------------------------------------------- Total Return 1.48% + 1.56% (0.43%) 9.86% 16.59% 10.72% - ----------------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------------- Net assets, end of period (000's) $15,862 $20,749 $33,537 $32,683 $22,783 $14,273 - ----------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.20% # 2.15% 2.15% 2.15% 2.15% 1.95% - ----------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 8.59% # 7.57% 6.37% 6.60% 7.63% 8.25% - ----------------------------------------------------------------------------------- Portfolio turnover rate 41% + 119% 162% 193% 68% 180% - ----------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.50% # 2.32% 2.21% 2.24% 2.28% 2.37% - -----------------------------------------------------------------------------------
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Core Bond Fund (formerly Investment Quality Bond Fund) ---------------------------------------------------------- Class A ---------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00** Ended Ended Ended Ended Ended (unaudited) 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95* - ------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $9.85 $10.63 $10.52 $10.34 $10.56 $9.74 - ------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.32 0.66 0.68 0.67 0.66 0.68 Net realized and unrealized gain/(loss) on investments and foreign currency (0.24) (0.77) 0.10 0.18 (0.20) 0.82 -------------------------------------------------------- Total from investment operations 0.08 (0.11) 0.78 0.85 0.46 1.50 -------------------------------------------------------- Distributions Dividends from net investment income (0.34) (0.67) (0.67) (0.67) (0.68) (0.68) - ------------------------------------------------------------------------------------ Net Asset Value, End of Period $9.59 $9.85 $10.63 $10.52 $10.34 $10.56 - ------------------------------------------------------------------------------------ Total Return 0.78% + (1.08%) 7.63% 8.57% 4.52% 15.91% - ------------------------------------------------------------------------------------ Ratios/Supplemental Data - ------------------------------------------------------------------------------------ Net assets, end of period (000's) $2,887 $3,507 $6,730 $7,110 $9,056 $10,345 - ------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.30% # 1.25% 1.25% 1.25% 1.25% 1.25% - ------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 6.52% # 4.77% 6.45% 6.54% 6.37% 6.72% - ------------------------------------------------------------------------------------ Portfolio turnover rate 18% + 43% 48% 65% 56% 132% - ------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by adviser 1.94% # 1.70% 1.54% 1.62% 1.55% 1.73% - ------------------------------------------------------------------------------------
* Net investment income per share has been calculated using the average share method + Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 30 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Core Bond Fund (formerly Investment Quality Bond Fund) --------------------------------------------------------- Class B --------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00** Ended Ended Ended Ended Ended (unaudited) 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95 - ----------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $9.85 $10.62 $10.52 $10.33 $10.55 $9.74 - ----------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.28 0.59 0.61 0.60 0.60 0.61 Net realized and unrealized gain/(loss) on investments and foreign currency (0.25) (0.75) 0.10 0.20 (0.20) 0.82 ------------------------------------------------------- Total from investment operations 0.05 (0.16) 0.71 0.80 0.40 1.43 ------------------------------------------------------- Distributions Dividends from net investment income (0.31) (0.61) (0.61) (0.61) (0.62) (0.62) - ----------------------------------------------------------------------------------- Net Asset Value, End of Period $9.59 $9.85 $10.62 $10.52 $10.33 $10.55 - ----------------------------------------------------------------------------------- Total Return 0.47% + (1.56%) 6.93% 8.05% 3.92% 15.12% - ----------------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------------- Net assets, end of period (000's) $3,583 $4,295 $4,845 $4,613 $4,678 $3,472 - ----------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.95% # 1.90% 1.90% 1.90% 1.90% 1.90% - ----------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 5.85% # 5.71% 5.81% 5.89% 5.72% 5.95% - ----------------------------------------------------------------------------------- Portfolio turnover rate 18% + 43% 48% 65% 56% 132% - ----------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.60% # 2.39% 2.20% 2.33% 2.27% 2.69% - -----------------------------------------------------------------------------------
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Core Bond Fund (formerly Investment Quality Bond Fund) ---------------------------------------------------------- Class C ---------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00** Ended Ended Ended Ended Ended (unaudited) 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95 - ------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $9.85 $10.62 $10.52 $10.33 $10.55 $9.74 - ------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.28 0.59 0.61 0.60 0.60 0.61 Net realized and unrealized gain/(loss) on investments and foreign currency (0.23) (0.75) 0.10 0.20 (0.20) 0.82 -------------------------------------------------------- Total from investment operations 0.05 (0.16) 0.71 0.80 0.40 1.43 -------------------------------------------------------- Distributions Dividends from net investment income (0.31) (0.61) (0.61) (0.61) (0.62) (0.62) - ------------------------------------------------------------------------------------ Net Asset Value, End of Period $9.59 $9.85 $10.62 $10.52 $10.33 $10.55 - ------------------------------------------------------------------------------------ Total Return 0.47% + (1.56%) 6.93% + 8.05% 3.92% 15.12% - ------------------------------------------------------------------------------------ Ratios/Supplemental Data - ------------------------------------------------------------------------------------ Net assets, end of period (000's) $3,285 $4,593 $5,532 $6,109 $7,543 $7,206 - ------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.95% # 1.90% 1.90% 1.90% 1.90% 1.90% - ------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 5.86% # 5.70% 5.81% 5.89% 5.72% 6.00% - ------------------------------------------------------------------------------------ Portfolio turnover rate 18% + 43% 48% 65% 56% 132% - ------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by adviser 2.59% # 2.38% 2.20% 2.29% 2.22% 2.50% - ------------------------------------------------------------------------------------
* Net investment income per share has been calculated using the average share method + Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 31 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Municipal Bond Fund (formerly National Municipal Bond) -------------------------------------------------------- Class A -------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00 Ended Ended Ended Ended Ended (unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95 - ---------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $9.48 $10.22 $10.09 $9.73 $9.62 $8.82 - ---------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.23 0.45 0.47 0.48 0.48 0.51 Net realized and unrealized gain/(loss) on investments and foreign currency (0.11) (0.74) 0.13 0.36 0.11 0.80 ------------------------------------------------------ Total from investment operations 0.12 (0.29) 0.60 0.84 0.59 1.31 ------------------------------------------------------ Distributions Dividends from net investment income (0.19) (0.45) (0.47) (0.48) (0.48) (0.51) - ---------------------------------------------------------------------------------- Net Asset Value, End of Period $9.41 $9.48 $10.22 $10.09 $9.73 $9.62 - ---------------------------------------------------------------------------------- Total Return 1.74% + (2.95%) 6.04% 8.85% 6.31% 15.26% - ---------------------------------------------------------------------------------- Ratios/Supplemental Data - ---------------------------------------------------------------------------------- Net assets, end of period (000's) $3,721 $4,435 $5,820 $6,347 $7,710 $7,618 - ---------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.00% # 1.00% 1.00% 0.99% 0.99% 0.80% - ---------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 4.96% # 4.52% 4.60% 4.87% 4.99% 5.55% - ---------------------------------------------------------------------------------- Portfolio turnover rate 18% + 46% 43% 29% 49% 44% - ---------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.73% # 1.41% 1.23% 1.23% 1.25% 1.34% - ----------------------------------------------------------------------------------
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Municipal Bond Fund (formerly National Municipal Bond) -------------------------------------------------------- Class B -------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00 Ended Ended Ended Ended Ended (unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95 - ---------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $9.48 $10.22 $10.09 $9.73 $9.62 $8.81 - ---------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.19 0.37 0.38 0.40 0.40 0.43 Net realized and unrealized gain/(loss) on investments and foreign currency (0.10) (0.74) 0.13 0.36 0.11 0.81 ------------------------------------------------------ Total from investment operations 0.09 (0.37) 0.51 0.76 0.51 1.24 ------------------------------------------------------ Distributions Dividends from net investment income (0.16) (0.37) (0.38) (0.40) (0.40) (0.43) - ---------------------------------------------------------------------------------- Net Asset Value, End of Period $9.41 $9.48 $10.22 $10.09 $9.73 $9.62 - ---------------------------------------------------------------------------------- Total Return 1.33% + (3.77%) 5.15% 7.94% 5.41% 14.42% - ---------------------------------------------------------------------------------- Ratios/Supplemental Data - ---------------------------------------------------------------------------------- Net assets, end of period (000's) $3,378 $4,197 $5,273 $6,532 $6,130 $5,876 - ---------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.85% # 1.85% 1.85% 1.84% 1.84% 1.70% - ---------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 4.11% # 3.67% 3.75% 4.02% 4.14% 4.59% - ---------------------------------------------------------------------------------- Portfolio turnover rate 18% + 46% 43% 29% 49% 44% - ---------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.59% # 2.26% 2.08% 2.15% 2.11% 2.41% - ----------------------------------------------------------------------------------
+ Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 32 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Municipal Bond Fund (formerly National Municipal Bond) -------------------------------------------------------- Class C -------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00 Ended Ended Ended Ended Ended (unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95 - ---------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $9.48 $10.22 $10.09 $9.73 $9.62 $8.81 - ---------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.19 0.37 0.38 0.40 0.40 0.43 Net realized and unrealized gain/(loss) on investments and foreign currency (0.10) (0.74) 0.13 0.36 0.11 0.81 ------------------------------------------------------ Total from investment operations 0.09 (0.37) 0.51 0.76 0.51 1.24 ------------------------------------------------------ Distributions Dividends from net investment income (0.16) (0.37) (0.38) (0.40) (0.40) (0.43) - ---------------------------------------------------------------------------------- Net Asset Value, End of Period $9.41 $9.48 $10.22 $10.09 $9.73 $9.62 - ---------------------------------------------------------------------------------- Total Return 1.32% + (3.77%) 5.15% 7.94% 5.41% 14.42% - ---------------------------------------------------------------------------------- Ratios/Supplemental Data - ---------------------------------------------------------------------------------- Net assets, end of period (000's) $2,825 $3,931 $5,147 $5,305 $5,693 $6,834 - ---------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.85% # 1.85% 1.85% 1.84% 1.84% 1.70% - ---------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 4.11% # 3.67% 3.75% 4.02% 4.14% 4.53% - ---------------------------------------------------------------------------------- Portfolio turnover rate 18% + 46% 43% 29% 49% 44% - ---------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.58% # 2.26% 2.08% 2.15% 2.25% 2.63% - ----------------------------------------------------------------------------------
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U.S. Government Securities Fund -------------------------------------------------------- Class A -------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00 Ended Ended Ended Ended Ended (unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95 - ---------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $9.55 $10.08 $9.94 $9.80 $9.98 $9.45 - ---------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.53 0.53 0.56 0.59 0.56 0.63 Net realized and unrealized gain/(loss) on investments and foreign currency (0.47) (0.48) 0.16 0.13 (0.12) 0.57 ------------------------------------------------------- Total from investment operations 0.06 0.05 0.72 0.72 0.44 1.20 ------------------------------------------------------- Distributions Dividends from net investment income (0.29) (0.58) (0.58) (0.58) (0.56) (0.67) Distributions in excess of net investment income - - - - (0.06) - ------------------------------------------------------- Total distributions (0.29) (0.58) (0.58) (0.58) (0.62) (0.67) - ---------------------------------------------------------------------------------- Net Asset Value, End of Period $9.32 $9.55 $10.08 $9.94 $9.80 $9.98 - ---------------------------------------------------------------------------------- Total Return 0.63% + 0.48% 7.41% 7.56% 4.64% 13.15% - ---------------------------------------------------------------------------------- Ratios/Supplemental Data - ---------------------------------------------------------------------------------- Net assets, end of period (000's) $35,495 $35,379 $49,624 $53,235 $72,774 $81,179 - ---------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.25% # 1.25% 1.25% 1.25% 1.25% 1.25% - ---------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 6.18% # 5.64% 5.65% 6.20% 5.71% 6.54% - ---------------------------------------------------------------------------------- Portfolio turnover rate 69% + 63% 116% 364% 477% 469% - ---------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.62% # 1.46% 1.40% 1.42% 1.41% 1.45% - ----------------------------------------------------------------------------------
+ Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 33 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
U.S. Government Securities Fund ---------------------------------------------------------- Class B ---------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00 Ended Ended Ended Ended Ended (unaudited) 10/31/99 10/31/98 10/31/97 10/31/96* 10/31/95 - ------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $9.56 $10.07 $9.94 $9.80 $9.98 $9.45 - ------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.48 0.47 0.49 0.54 0.50 0.56 Net realized and unrealized gain/(loss) on investments and foreign currency (0.47) (0.47) 0.15 0.11 (0.12) 0.58 --------------------------------------------------------- Total from investment operations 0.01 0.00 0.64 0.65 0.38 1.14 --------------------------------------------------------- Distributions Dividends from net investment income (0.25) (0.51) (0.51) (0.51) (0.50) (0.61) Distributions in excess of net investment income - - - - (0.06) - --------------------------------------------------------- Total distributions (0.25) (0.51) (0.51) (0.51) (0.56) (0.61) - ------------------------------------------------------------------------------------ Net Asset Value, End of Period $9.32 $9.56 $10.07 $9.94 $9.80 $9.98 - ------------------------------------------------------------------------------------ Total Return 0.17% + 0.01% 6.60% 6.84% 3.97% 12.45% - ------------------------------------------------------------------------------------ Ratios/Supplemental Data - ------------------------------------------------------------------------------------ Net assets, end of period (000's) $12,0725 $12,033 $17,850 $16,659 $19,444 $13,993 - ------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.90% # 1.90% 1.90% 1.90% 1.90% 1.90% - ------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 5.53% # 5.00% 4.99% 5.55% 5.06% 5.53% - ------------------------------------------------------------------------------------ Portfolio turnover rate 69% + 63% 116% 364% 477% 469% - ------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by adviser 2.27% # 2.11% 2.05% 2.09% 2.06% 2.28% - ------------------------------------------------------------------------------------
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U.S. Government Securities Fund --------------------------------------------------------- Class C --------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00 Ended Ended Ended Ended Ended (unaudited) 10/31/99 10/31/98 10/31/97 10/31/96* 10/31/95 - ----------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $9.56 $10.07 $9.94 $9.80 $9.98 $9.45 - ----------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.48 0.47 0.49 0.54 0.50 0.56 Net realized and unrealized gain/(loss) on investments and foreign currency (0.47) (0.47) 0.15 0.11 (0.12) 0.58 -------------------------------------------------------- Total from investment operations 0.01 0.00 0.64 0.65 0.38 1.14 -------------------------------------------------------- Distributions Dividends from net investment income (0.25) (0.51) (0.51) (0.51) (0.50) (0.61) Distributions in excess of net investment income - - - - (0.06) - -------------------------------------------------------- Total distributions (0.25) (0.51) (0.51) (0.51) (0.56) (0.61) - ----------------------------------------------------------------------------------- Net Asset Value, End of Period $9.32 $9.56 $10.07 $9.94 $9.80 $9.98 - ----------------------------------------------------------------------------------- Total Return 0.17% + 0.01% 6.60% 6.84% 3.97% 12.45% - ----------------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------------- Net assets, end of period (000's) $10,817 $10,776 $12,708 $14,716 $20,009 $20,186 - ----------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.90% # 1.90% 1.90% 1.90% 1.90% 1.90% - ----------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 5.53% # 5.00% 5.00% 5.55% 5.06% 5.74% - ----------------------------------------------------------------------------------- Portfolio turnover rate 69% + 63% 116% 364% 477% 469% - ----------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 2.27% # 2.11% 2.05% 2.09% 2.06% 2.15% - -----------------------------------------------------------------------------------
* Net investment income per share has been calculated using the average share method + Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 34 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Money Market Fund -------------------------------------------------------- Class A -------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00 Ended Ended Ended Ended Ended (unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95 - ---------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ---------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.02 0.04 0.05 0.05 0.05 0.05 Distributions Dividends from net investment income (0.02) (0.04) (0.05) (0.05) (0.05) (0.05) - ---------------------------------------------------------------------------------- Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ---------------------------------------------------------------------------------- Total Return 2.49% + 4.56% 5.18% 5.13% 5.16% 5.60% - ---------------------------------------------------------------------------------- Ratios/Supplemental Data - ---------------------------------------------------------------------------------- Net assets, end of period (000's) $10,370 $6,030 $10,295 $11,057 $8,087 $11,379 - ---------------------------------------------------------------------------------- Ratio of total expenses to average net assets 0.66% # 0.50% 0.50% 0.50% 0.50% 0.50% - ---------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 5.07% # 4.46% 5.06% 5.02% 5.02% 5.45% - ---------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.06% # 0.95% 0.92% 0.96% 0.95% 0.96% - ----------------------------------------------------------------------------------
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Money Market Fund -------------------------------------------------------- Class B -------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00 Ended Ended Ended Ended Ended (unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95 - ---------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ---------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.02 0.04 0.05 0.05 0.05 0.05 Distributions Dividends from net investment income (0.02) (0.04) (0.05) (0.05) (0.05) (0.05) - ---------------------------------------------------------------------------------- Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ---------------------------------------------------------------------------------- Total Return 2.50% + 4.56% 5.18% 5.13% 5.16% 5.60% - ---------------------------------------------------------------------------------- Ratios/Supplemental Data - ---------------------------------------------------------------------------------- Net assets, end of period (000's) $2,843 $4,551 $5,919 $3,332 $3,062 $1,564 - ---------------------------------------------------------------------------------- Ratio of total expenses to average net assets 0.65% # 0.50% 0.50% 0.50% 0.50% 0.50% - ---------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 4.94% # 4.47% 5.02% 5.02% 5.02% 5.52% - ---------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 0.98% # 0.99% 0.98% 1.05% 1.18% 1.41% - ----------------------------------------------------------------------------------
+ Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 35 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Money Market Fund -------------------------------------------------------- Class C -------------------------------------------------------- Six months Ended Year Year Year Year Year 4/30/00 Ended Ended Ended Ended Ended (unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95 - ---------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ---------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.02 0.04 0.05 0.05 0.05 0.05 Distributions Dividends from net investment income (0.02) (0.04) (0.05) (0.05) (0.05) (0.05) - ---------------------------------------------------------------------------------- Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ---------------------------------------------------------------------------------- Total Return 2.49 + 4.56% 5.18% 5.13% 5.16% 5.60% - ---------------------------------------------------------------------------------- Ratios/Supplemental Data - ---------------------------------------------------------------------------------- Net assets, end of period (000's) $6,722 $8,644 $8,237 $7,539 $9,840 $9,394 - ---------------------------------------------------------------------------------- Ratio of total expenses to average net assets 0.65% # 0.50% 0.50% 0.50% 0.50% 0.50% - ---------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 4.95% # 4.48% 5.05% 5.01% 5.02% 5.46% - ---------------------------------------------------------------------------------- Expense ratio before expense reimbursement by adviser 1.01% # 1.01% 0.94% 1.00% 0.98% 0.95% - ----------------------------------------------------------------------------------
+ Non-annualized # Annualized The accompanying notes are an integral part of the financial statements. 36 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- International Small Cap Fund - -----------------------------------------------------
Shares Value ------ ----- COMMON STOCKS - 84.05% Airlines - 0.39% China Southern Airline* 672,000 $123,371 ------------ Apparel - 0.57% Giordano International 112,000 183,331 ------------ Automobiles & Related - 1.41% Brilliance China Automotive 4,385 71,256 Futaba Industrial* 14,000 148,665 Haldex AB 4,350 48,274 Jac* 600 43,383 Lex Service 22,075 139,713 ------------ 451,291 Basic Industry - 1.13% BWT AG* 250 73,410 Carbone Lorraine* 2,875 125,456 Tsubaki Nakashima* 13,000 162,718 ------------ 361,584 Biotechnology - 1.63% Oxford Glycosciences* 5,616 142,568 Perbio Science 23,800 164,577 Stressgen Biotechnologies Co.* 5,550 20,050 Trinity Biotech Plc* 5,475 21,900 Xenova Group* 80,600 170,667 ------------ 519,762 Building Materials - 1.25% Buzzi Unichem Spa* 11,250 95,115 Caltagirone Spa* 25,950 85,872 Natsteel, Ltd.* 41,000 100,428 Nichiei Co.* 47,000 119,224 ------------ 400,639 Business Services - 6.37% A Novo 795 175,191 Articon Information Systems AG* 719 54,906 C. Rel AS* 38,825 56,340 Connova Group AB 6,575 50,599 Devoteam SA* 225 31,091 Deutscher Industrie Service* 950 115,728 Eyretel* 111,625 257,216 GFK AG, 144A* 2,625 105,120 HiQ International AB* 675 66,627 Information Highway Center 5,950 61,053 Kipling Holding AB 3,975 76,698 Mediagerance* 625 52,216 Penauille Polyservices* 300 181,229 Pinkroccade NV 5,350 331,703 Prosegur Seguridad 6,300 74,341 RTS Networks Group* 2,525 4,285 Sifo Group AB* 8,645 110,883 Sumisho Lease* 8,000 146,646
Shares Value ------ ----- Business Services - cont'd. Transacsys* 17,075 $13,558 Unique International NV 3,150 72,308 ------------ 2,037,738 Chemicals - 1.00% Bejing Yanhua* 1,070,000 126,380 Oxford Asymmetry* 1,575 10,250 Shanghai Petrochemical Corp.* 1,318,000 177,669 Shanghai Petrochemical Corp.* 400 5,750 ------------ 320,049 Computer Equipment - 3.18% IBA Technologies, Ltd. 144A* 89,550 66,417 Keycorp, Ltd.* 2,575 13,158 Koa Corporation 4,000 116,280 Kontron* 1,100 57,001 Logitech International* 500 329,941 Lynx Group Plc* 23,575 67,904 Micronics Japan Co.* 1,100 22,201 Muehlbauer Holdings* 925 59,705 Mycal Card, Inc. 2,600 96,524 Plasmon Plc 23,800 87,821 Yuxing Infotech Holding* 120,000 100,139 ------------ 1,017,091 Computer Networking - 0.26% Automated Systems Holdings* 122,000 81,446 ------------ Computer Software & Services - 7.62% Academedia AB* 3,400 73,946 Advantage Group, Ltd.* 61,925 109,758 Aisoftw@re* 250 39,319 AIT Group 10,725 153,624 Auxinet Plc* 17,975 4,618 Cedar Group* 6,575 73,604 Certicom Corp.* 1,100 56,081 Easier* 26,875 31,382 Ecosoft Group Plc* 1,900 25,884 Founder Holdings, Ltd.* 184,000 106,301 ILOG SA* 1,900 68,400 Info Realite* 2,300 76,319 ITNet* 11,775 137,957 Japan Business Comp.* 1,000 46,660 Meta4 NV* 1,150 13,173 Netbenefit* 4,500 49,044 Norcom Information* 850 66,378 Radvision, Ltd.* 5,350 204,638 RM 9,650 105,548 Royalblue Group 2,775 56,167 Securenet Limited* 8,925 26,582 Ser Systeme AG* 4,325 181,259 Servicepower Tech.* 19,925 36,296 Sherwood International 7,050 102,081 Sigma AB* 3,625 104,311 Software Innovation* 2,300 43,646 Systar* 1,600 33,891
The accompanying notes are an integral part of the financial statements. 37 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Computer Software & Services - cont'd. Think Tools* 175 $72,555 Tiscon AG* 1,425 116,592 Unit 4 NV* 2,575 129,922 Visma ASA 2,550 15,371 XRT-Cerg 650 75,637 ------------ 2,436,944 Construction - 0.39% Hunet* 24,000 124,427 ------------ Consumer Products & Services - 1.48% Aderans Company 2,800 122,094 Homac 2,900 71,953 Zapf Creation AG 3,425 213,286 ITE Group 49,600 66,799 ------------ 474,132 Distribution - 0.82% China Shipping* 896,000 106,979 Manutan International 1,850 153,552 ------------ 260,531 Diversified - 1.20% DCC Plc* 24,500 241,662 Seiyu 47,000 140,980 ------------ 382,642 Electronics - 6.19% AGC AG 325 77,410 Adcon Telemetry AG* 9,075 207,077 Alba 2,500 23,354 Allgon AB* 5,325 117,594 Eimo 6,700 60,910 Enplas Corporation* 3,000 151,646 JOT Automation Group 10,750 77,694 Kardex AG* 175 56,319 Kudelski SA* 13 133,728 Nanjing Panda Electronics* 168,000 69,558 SEZ Holdings AG* 63 58,267 Sustainable Technologies* 109,950 12,200 SZ Testsysteme 7,600 191,384 Techem AG 144A* 9,600 259,203 Technology Nexus AB 2,100 81,508 Toko, Inc.* 29,000 241,633 Yamaichi Electronics* 2,100 75,823 Yokowo Company* 3,000 84,433 ------------ 1,979,741 Energy - 0.16% Vesta Wind Systems, 144A 150 50,162 ------------ Environmental Services - 0.10% Waste Recycling 4,500 32,089 ------------ Financial Services - 5.52% Aberdeen Asset Management* 8,050 58,782 Bank Sarasin et Cie* 25 67,264 Bertrand Faure 3,375 127,177 BMP Venture Capital AG* 825 17,850
Shares Value ------ ----- Financial Services - cont'd. Dah Sing Financial 19,600 $76,747 First Capital Corp.* 126,000 126,258 Great Eagle Holdings* 61,000 104,157 Ichiyoshi Securities Co. 28,000 266,482 Intermediate Capital 14,875 136,295 Internet Indirect* 60,825 17,993 IQE Plc* 2,325 139,500 JCG Holdings, Ltd. 32,000 16,638 M2M Corp., Ltd.* 14,000 2,453 Man E D & F Group 18,875 145,909 Menire 8,000 54,546 Newmedia Spark Plc* 47,300 46,396 Real Time Systemize 144A 8,025 159,772 Tecis Holding AG* 700 100,546 Wing Hang Bank, Ltd. 41,500 101,763 ------------ 1,766,528 Food & Beverages - 1.47% Elior 144A* 14,100 153,435 Fraser and Neave 37,000 119,250 Iceland Group 3,625 16,001 Katokichi Co.* 4,000 97,394 Matsuya Foods* 1,000 29,255 Ng Fung Hong, Ltd.* 110,000 55,076 ------------ 470,411 Healthcare Services - 1.33% Colin Corp. 1,500 181,919 Nestor Healthcare Group 20,200 135,237 Quality Healthcare* 140,000 57,516 Unilabs Holdings 50 50,448 ------------ 425,120 Insurance - 0.91% April Group SA 600 105,819 COR AG Insurance* 11,575 184,150 ------------ 289,969 Leisure & Entertainment - 2.07% Enlight Interactive AB* 1,150 18,342 Highlight Communications* 5,475 219,002 Koei Company* 2,800 100,579 NH Hotels SA* 7,025 78,872 Scandic Hotels AB 7,525 79,732 Superscape Plc* 32,750 165,718 ------------ 662,245 Machinery - 5.83% Amada Co.* 24,000 218,636 Furukawa Co.* 30,000 56,937 Idec Izumi Corp.* 15,000 238,856 KCI Konecranes Int'l. Plc 1,750 58,069 LG Cable & Machinery, Ltd.* 6,680 106,543 Manitou* 1,800 144,001 Mikron Holding AG* 50 36,096 Neopost* 2,500 66,137 Nippon Thompson Co.* 17,000 176,429
The accompanying notes are an integral part of the financial statements. 38 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Machinery - cont'd. Pinguely Haulotte* 2,050 $322,412 Saurer AG* 450 221,797 Swisslog Holding* 500 219,767 ------------ 1,865,680 Manufacturing - 2.32% Abric Berhad* 34,000 120,789 Chloride Group 72,350 144,186 Omni Industries* 118,000 230,952 Reiter Holding AG* 150 88,719 Zodiac 900 158,647 ------------ 743,293 Medical Supplies & Equipment - 4.06% Axis Shield* 7,900 81,056 Biacore International 2,350 85,183 Card Guard* 4,625 195,776 Jomed NV* 2,400 72,367 Moritex Corp.* 2,000 149,979 MWG Biotech AG* 575 101,933 Nobel Biocare* 8,400 224,849 Tecan AG* 450 387,753 ------------ 1,298,896 Metals & Mining - 1.04% Angang New Steel* 1,064,000 87,424 Antofagasta Holdings* 9,775 60,116 Arkivator AB 1,650 78,396 Jiangxi Copper Company, Ltd.* 119,000 9,930 Yanzhou Coal Mining* 490,000 98,136 ------------ 334,002 Oil Services - 0.88% Precision Drilling Corp.* 7,850 249,669 Smedvig ASA 2,575 32,337 ------------ 282,006 Packaging - 0.17% Ifco Systems NV* 2,200 53,401 ------------ Pharmaceuticals - 1.29% Cerep* 3,725 216,729 Hisamitsu Pharmaceuticals 3,000 73,879 Karo Bio AB 2,575 90,467 Neurosearch AS* 475 30,610 ------------ 411,685 Property - 1.41% Joint Corporation* 4,500 156,228 Keppel Land, Ltd.* 62,000 74,117 Pierre & Vacances 875 45,182 Wing Tai Holdings, Ltd. 213,000 174,744 ------------ 450,271 Publishing & Broadcasting - 3.70% Alma Media Corp. 2,875 122,842 Chrysalis Group* 28,500 95,402 HIT Entertainment 144A* 39,150 262,105
Shares Value ------ ----- Publishing & Broadcasting - cont'd. IMS Group 1,800 $5,717 Incepta Group* 111,450 189,139 Intertainment AG* 1,900 180,847 Isis Communications* 198,050 99,469 Jean-Claude Darmon* 275 30,825 Johnston Press* 11,675 59,622 Netnation Communications, Inc.* 275 1,994 Sportsworld Media* 11,023 86,155 Wegener NV* 3,175 48,924 ------------ 1,183,041 Retail Trade - 3.58% Beter Bed Holding NV* 2,100 70,446 Cortefiel SA 8,575 180,856 Daimaru, Inc. 54,000 178,475 Esprit Holdings 18,000 19,180 Etam Development* 3,300 74,401 Grafton Group* 2,000 41,364 Jelmoli Holding AGB* 50 64,655 Lindex AB 2,425 58,962 Shimachu Co. 15,900 270,851 Ted Baker 9,900 77,686 Xebio Co. 5,800 108,466 ------------ 1,145,342 Semiconductors & Equipment - 1.60% Advanced Systems Auto* 74,000 65,045 BE Semiconductor* 3,975 80,585 CE Consumer Electronics* 125 21,023 Custom Silicon* 4,000 74,910 DSP Group, Inc.* 1,325 94,241 Imagination Technologies Group* 10,125 44,928 Robotic Technology Systems* 15,700 130,776 ------------ 511,508 Telecommunication Equipment - 5.31% Algo Vision* 9,925 119,100 Audiocodes, Ltd.* 1,200 90,000 Breeze.com, Ltd.* 9,200 253,000 BVRP Software 909 87,595 Comroad AG* 275 37,375 Ericsson Spa* 1,625 88,342 European Telecom 15,750 109,613 Infocast AB* 1,975 28,636 ITG Group Plc 144A* 13,844 157,571 Mobile Solutions, Inc. 1,125 39,375 On Track Innovation* 6,750 135,001 Pandatel AG 1,225 159,252 Switchcore 812 58,414 Teleste Corp. 12,725 334,902 ------------ 1,698,176 Telecommunication Services - 4.32% AAPT, Ltd. 19,600 78,408 City Telecom 248,000 86,761 Comptel OYJ 144A 11,025 249,167
The accompanying notes are an integral part of the financial statements. 39 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Telecommunication Services - cont'd. Cybertron Telekon AG 1,450 $244,130 Easynet Group* 342 5,043 Future Integrated Telephony* 13,077 99,765 Glocalnet* 1,750 56,603 NHC Communications, Inc.* 825 4,429 Telelogic AB 42,175 319,864 Telemetrix 46,625 236,653 ------------ 1,380,823 Transportation - 1.05% De Sammenslut Vogn 5,100 133,826 Hitachi Transport 3,000 13,748 Neptune Orient Lines* 177,000 158,693 Shenzen Expressway 280,000 31,274 ------------ 337,541 Utilities - 1.04% Huaneng Power International* 764,000 173,612 Independent Energy Holdings Plc* 4,075 158,925 ------------ 332,537 TOTAL COMMON STOCKS (Cost $29,977,142) $ 26,879,445 ------------ WARRANTS - 0.48% Burntsand, Inc. (Expiration date 03/07/01)* 11,020 $52,834 NHC Communications, Inc. Special Warrants 5,825 31,270 OCI Communications, Inc. (Expiration date 03/28/01)* 6,518 69,322 ------------ TOTAL WARRANTS (Cost $201,566) $153,426 ------------ PREFERRED STOCKS - 0.67% Belgo Mineire* 50,000 $3,932 Boss (Hugo) AG* 1,100 173,002 Celular CRT* 100,000 37,663 ------------ TOTAL PREFERRED STOCKS (Cost $222,178) $214,597 ------------ Principal Value --------- ----- SHORT TERM INVESTMENTS - 0.94% SSGA Money Market Fund 301,274 $301,274 ------------ 301,274 ------------ REPURCHASE AGREEMENT - 13.86% Repurchase Agreement with State Street Bank & Trust Co. dated 04/28/00 at 4.75%, to be repurchased at $4,432,725 on 05/01/00, collateralized by $4,650,000 U.S. Treasury Notes, 5.625% due 05/15/08 (valued at $4,644,453, including interest) (Cost $4,431,000) 4,431,000 4,431,000 ------------ TOTAL INVESTMENTS (International Small Cap Fund) (Cost $35,133,160) $31,979,742 ------------
- -------------------------------------------------------- International Equity Fund - --------------------------------------------------------
Shares Value ------ ----- COMMON STOCKS - 88.99% Aerospace & Military Technology - 0.30% British Aerospace Plc 5,826 $35,830 Singapore Technologies Engineering 20,000 28,128 Thomson CSF 451 16,031 ------------ 79,989 Appliances & Household Durables - 2.54% Electrolux AB 1,300 21,966 Matsushita Electric Industrial 7,000 185,345 Philips Electronics 3,864 172,371 Sanyo Electric Company Ltd. 9,000 60,075 Sharp Corporation 4,000 77,212 Sony Corporation 1,300 149,359 ------------ 666,328 Automobiles - 2.51% Cycle & Carriage Ltd. 2,000 5,919 Daimlerchrysler AG 1,550 90,394 Fiat SpA 693 15,884 Honda Motor Company 1,000 44,716 Hyundai Motor Co. 410 3,861 Nissan Motors Company 7,000 31,820 Peugeot SA 123 25,450 Toyota Motor Corp. 8,000 397,723 Volkswagen AG 550 20,750 Volvo AB 200 4,673 Volvo AB 700 16,981 ------------ 658,171 Banking - 12.08% 77 Bank Ltd. 1,000 7,184 Abbey National Plc. 2,518 28,737 Abn Amro Holdings NV 4,283 88,192 Asahi Bank Ltd. 11,000 52,956 Banca Commerciale Italiana 747 3,531 Banca Intesa SpA 10,944 40,294 Banca Popolare di Milano 870 5,188 Banco Bilbao Vizcaya SA 14,420 196,638 Banco Bradesco 527,000 2,977 Banco Comercial Portugues SA 6,680 31,336 Banco Espirito Santo 690 15,996 Banco di Roma 10,434 11,032 Banco Santander Central Hispano 18,056 188,277 Bank Austria AG 861 38,197 Bank of East Asia Ltd. 1,838 3,976 Bank of Tokyo-Mitsubishi Ltd 18,000 232,301 Bank of Yokohama Ltd. 1,000 3,833 Banque Nationale de Paris 904 73,060 Barclays Plc 1,903 48,680 Bayerische Hypo-Und Vereinsbank 1,550 94,410 BPI-SGPS SA 4,425 14,402 Chiba Bank Ltd. 600 2,394 Credit Suisse Holding 780 140,889
The accompanying notes are an integral part of the financial statements. 40 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Banking - cont'd. Daiwa Bank Ltd. 8,000 $21,627 DBS Group Holdings Ltd. 7,815 107,619 Deutsche Bank AG 1,950 131,006 Dresdner Bank AG 1,400 57,668 Foereningssparbanken AB 2,200 32,389 Fuji Bank Ltd. 13,000 108,318 Bank of Fukuoka Ltd. 1,000 6,601 Halifax Group Plc 3,935 36,882 Hang Seng Bank Ltd. 2,900 26,806 HSBC Holdings Plc 13,514 149,389 Industrial Bank of Japan 11,000 90,636 Joyo Bank Ltd. 3,400 12,150 Kookmin Bank 440 4,758 Lloyds TSB Group Plc 9,981 97,435 Mediobanca SpA 1,377 11,417 Mitsubishi Trust & Banking Corp. 5,000 41,985 National Australia Bank Ltd. 3,276 44,883 Nordic Baltic Holdings 3,136 19,843 Oversea-Chinese Banking Corp. Ltd. 8,400 57,592 Sakura Bank Ltd. 18,000 126,316 San Paolo IMI SpA 3,094 43,316 Shinhan Bank Co. Ltd. 970 9,309 Shizuoka Bank Ltd. 4,000 37,032 Skandinaviska Enskilda Banken 2,500 27,325 Societe Generale 281 58,193 Sumitomo Bank 11,000 137,583 Suncorp Metway Ltd. 766 3,699 Svenska Handelsbanken 2,700 35,685 Tokai Bank Ltd 9,000 46,827 UBS AG 600 146,995 Unicredito Italiano 10,457 42,399 United Overseas Bank Ltd. 6,336 44,183 Westpac Banking Corp. 4,475 28,564 ------------ 3,170,910 Beverages & Tobacco - 1.99% Asahi Breweries Ltd. 2,000 20,368 Altadis SA 1,265 14,843 Austria Tabak SA 169 5,961 Bass Plc 1,456 17,059 British American Tobacco PlC 3,209 19,985 Coca-Cola Amatil Ltd. 1,548 3,701 Diageo Plc 10,990 88,634 Fosters Brewing Group Ltd. 4,277 10,805 Fraser & Neave Ltd. 2,000 6,446 Hartwall 76 1,114 Heineken Holdings NV 1,368 75,863 Japan Tobacco, Inc. 4 29,440 Kirin Brewery Company Ltd. 8,000 104,208 Moet Hennessy Louis Vuitton 260 109,107 Oesterreichische Brau-Beteilign 70 2,717 Pernod Ricard 205 9,272 Unicer Uniao Cervejjeira SA 94 2,553 ------------ 522,076
Shares Value ------ ----- Broadcasting & Publishing - 2.14% British Sky Broadcasting Group 2,871 $70,403 Canal Plus SA 356 68,612 Elsevier NV 1,752 17,042 EMI Group 1,484 14,395 Granada Group Plc 2,737 26,847 Mediaset SpA 2,891 46,914 News Corp Ltd. 4,539 57,644 Pearson Plc 1,248 42,223 Reed International Plc 2,207 15,360 Reuters Group 2,210 39,604 Singapore Press Holdings 2,000 39,144 South China Morning Post 2,000 2,131 Television Broadcasts Ltd. 1,000 6,836 Tokyo Broadcasting System, Inc. 1,000 43,512 Toppan Printing Co. Ltd. 3,000 31,385 WPP Group Plc 1,162 18,725 Wolters Kluwer NV 852 20,107 ------------ 560,884 Building Materials & Components - 0.14% Buderus AG 200 3,453 JM Bygg AB 700 12,492 Lafarge SA 105 8,696 Weinerberger Baustoffindustrie 528 11,280 ------------ 35,921 Business & Public Services - 3.75% Adecco SA 60 49,230 Anglian Water Plc 213 1,940 Autopistas Concesionaria Espanol 1,338 11,799 BAA Plc 2,161 14,030 Benesse Corporation Ltd. 400 35,755 Brambles Industries Ltd. 529 14,891 Cap Gemini SA 232 45,557 Capita Group PlC 311 7,989 Centrais Electricas Brasileiros 358,000 5,294 Dai Nippon Printing Co. Ltd. 3,000 50,910 Electrabel SA 43 10,394 Enel Societa Per Azioni 23,615 100,043 Flughafen Wein AG 163 5,225 Hays PlC 2,688 18,582 IVG Holding AG 1,340 17,445 Korea Electric Power Corp. Ltd. 680 19,914 Logica Plc 601 18,200 Mayne Nickless Ltd. 894 1,801 Railtrack Group Plc 920 11,817 Rentokil Initial Plc 4,998 13,715 SAP AG 200 93,819 Scottish Power Plc 1,431 11,434 Securitas AB 1,600 41,401 SEMA Group Plc 699 11,286 Soc. Gen. de Aguas de Barcelona 831 12,087 Sodexho Alliance SA 90 13,484 Softbank Corporation 400 98,505 Suez Lyonnaise des Eaux 430 67,432
The accompanying notes are an integral part of the financial statements. 41 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Business & Public Services - cont'd. Thames Water Plc 1,069 $13,432 United Utilities Plc 1,171 11,322 Vedior NV 213 2,256 Vivendi SA 1,544 152,717 ------------ 983,706 Chemicals - 2.16% Akzo Nobel NV 417 17,071 Asahi Chemical Industry Co. Ltd. 5,000 28,792 BASF AG 900 39,347 Bayer AG 900 37,498 BOC Group Plc 1,580 26,002 Cin Corporacao Industrial Norte 170 954 Imperial Chemical Industries Plc 563 4,821 L'Air Liquide 199 25,906 Lenzing AG 6 305 LG Chemicals 370 8,502 Mitsubishi Chemical Corp. 5,000 20,044 Novartis AG 215 300,331 Orica Ltd. 278 1,099 Sumitomo Chemical Co. Ltd. 7,000 34,866 Teijin Ltd. 1,000 4,472 Toray Industries, Inc. 4,000 14,517 Wesfarmers Ltd. 450 3,132 ------------ 567,659 Construction & Housing - 0.80% Acs Actividades de Construccion 310 8,590 Bau Holdings AG 36 1,466 Bilfinger & Berger Bauaktienge 250 3,511 Bouygues 94 59,990 Daiwa House Industry Co. Ltd. 2,000 13,330 Drott AB 2,130 19,005 Fomento de Construcciones Y Contra 472 9,569 Grupo Dragados SA 888 6,781 Hazama Corporation 900 508 Impregilo SpA 1,043 553 Kajima Corporation 9,000 20,914 Kumagai Gumi Co. Ltd. 600 317 Leighton Holdings Ltd. 661 1,749 Obayashi Corp. 1,000 3,481 Penta-Ocean Construction Co. Ltd. 800 904 Sanitec 61 709 Sekisui House Ltd. 4,000 36,662 Sirti SpA 448 843 Skanska/Frueher AB 500 18,236 Taylor Woodrow Plc 1,411 3,460 ------------ 210,578 Data Processing & Reproduction - 1.53% Canon, Inc. 3,000 137,206 Dassault Systemes 55 4,230 Fujitsu Ltd. 7,000 198,306 Getronics NV 221 13,180 Nidec Corporation 200 13,887
Shares Value ------ ----- Data Processing & Reproduction - cont'd. OCE NV 275 $3,675 Olivetti & Co. SpA 2,891 9,567 Tietoenator Corporation 225 10,841 Wm-Data Nordik AB 300 10,506 ------------ 401,398 Electrical & Electronics - 7.04% ABB AG 700 78,542 Alcatel 572 132,601 ARM Holdings Plc 1,430 14,472 L M Ericsson Telefon AB 3,100 275,563 Hitachi Ltd. 8,000 95,542 Johnson Electric Holdings Ltd. 1,500 12,036 Misys Plc 717 8,227 Mitsubishi Electric Corp. 10,000 85,451 NEC Corporation 6,000 163,311 Nokia AB 8,808 504,850 Samsung Electro-Mechanics Co. Ltd. 210 14,287 Schneider SA 438 28,669 Siemens AG 2,250 318,594 Toshiba Corporation 12,000 116,428 ------------ 1,848,573 Electronic Components & Instruments - 4.27% Advantest Corporation 400 91,506 Alps Electric Co. Ltd. 1,000 12,730 Creative Technology Ltd. 600 14,591 Fanuc Ltd. 1,100 115,280 Kyocera Corporation 800 133,833 LG Electronics, Inc. 170 4,534 Murata Manufacturing Co. Ltd. 1,000 194,417 Psion PlC 117 7,100 Sage Group Plc 1,840 20,498 Samsung Electronics Co. Ltd. 160 43,253 Sony Corporation 1,400 162,015 S T Microelectronics NV 714 136,246 Tokyo Electron Ltd. 1,000 163,033 Venture Manufacturing, Singapore 2,000 23,440 ------------ 1,122,476 Energy Sources - 5.61% BP Amoco Plc 42,307 365,249 Broken Hill Proprietary Co. Ltd. 2,384 25,673 Burmah Castrol Plc 493 12,128 Ente Nazionale Idrocarburi SpA 21,265 105,746 Japan Energy Corp. 1,000 861 Lasmo Plc 2,795 4,700 Nippon Mitsubishi Oil Corp. 11,000 38,087 OMV AG 219 17,988 Repsol SA 5,525 113,012 Royal Dutch Petroleum Co. NV 7,396 426,283 Santos Ltd. 1,779 4,052 Total Fina SA 2,373 360,052 ------------ 1,473,831
The accompanying notes are an integral part of the financial statements. 42 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Financial Services - 2.71% 31 Group Plc 902 $18,060 Acom Co. Ltd. 600 57,825 Amvescap Plc 1,018 14,899 Colonial Ltd. 1,930 9,965 Credit Saison Co., Ltd. 100 1,634 Daiwa Securities Group, Inc. 6,000 91,654 ING Groep NV 2,745 149,779 New Schroders Plc 311 1,453 Nichiei Company Ltd. 300 5,944 Nidec Corporation 200 16,850 Nomura Securities Co. Ltd. 7,000 176,272 OM Gruppen AB 300 12,447 Orix Corporation 240 34,262 Promise Company Ltd. 600 48,604 Samsung Securities Co. Ltd. 280 4,718 Schroder Plc 311 4,818 Takefuji Corporation 600 63,491 ------------ 712,675 Food & Household Products - 2.91% Ajinomoto Co., Inc. 3,000 34,301 Azucarera Ebro Agricolas 165 2,220 Cadbury Schweppes Plc 6,472 44,337 Eridania Beghin-Say SA 88 7,268 Goodman Fielder Wattie Ltd. 3,039 2,254 Groupe Danone 298 65,154 Jeronimo Martins Sgps. SA 565 10,078 KAO Corporation 3,000 91,376 Nestle SA 180 317,300 Nissin Food Products Co. 100 2,296 Parmalat Finanziaria SpA 4,303 4,495 Prima Inmobiloaroa SA 1,140 9,276 Raisio Group Plc 508 1,293 Unilever NV 2,540 115,363 Unilever Plc 9,345 56,162 ------------ 763,173 Forest Products & Paper - 0.37% Amcor Ltd. 1,574 4,660 Arjo Wiggins Appleton Plc 1,920 5,769 Buhrmann NV 267 6,771 Cartiere Burgo SpA 210 1,985 Oji Paper Co. Ltd. 5,000 31,385 Paperlinx Ltd. 525 946 Portucel Industrial SA 660 4,146 Reno de Medici SpA 295 654 Rexam Plc 905 3,466 Svenska Cellulosa AB 900 17,064 UPM-Kymmene4 844 21,867 ------------ 98,713 Gold Mines - 0.01% Normandy Mining Ltd. 3,014 1,496 ------------
Shares Value ------ ----- Health & Personal Care - 6.97% Astrazeneca Plc 4,621 $193,752 Aventis SA 2,036 111,981 Beiersdorf AG 700 45,628 CSL Ltd. 257 3,092 Faulding & Co. Ltd. 304 1,216 Glaxo Wellcome Plc 9,486 293,169 L'Oreal 184 124,787 Nycomed Amersham 963 7,347 Roche Holding AG Chf100 Ords 5 59,871 Roche Holding Chf Genusschein NPV 23 240,196 Sankyo Co. Ltd. 2,000 44,068 Sanofi Synthelabo SA 2,008 74,936 Shiseido Co. Ltd. 1,000 12,646 Smith & Nephew Plc 1,694 4,879 Smithkline Beecham Plc 14,539 199,201 Taisho Pharmaceutical Co. Ltd. 2,000 67,028 Takeda Chemical Industries Ltd. 4,000 263,297 Terumo Corporation 1,000 30,274 Yamanouchi Pharmaceutical Co. 1,000 52,863 ------------ 1,830,231 Industrial Components - 0.93% BICC Plc 1,343 1,641 Bridgestone Corporation 3,000 65,130 Cie Generale des Establissement 410 13,605 Continental AG 450 8,239 Denso Corporation 2,000 48,975 Fag Kugelfischer Georg Schaefer 550 4,400 Pirelli SpA 5,441 13,034 SKF AB 400 8,566 Sumitomo Electric Industries 5,000 66,611 Valeo SA 246 13,642 ------------ 243,843 Insurance - 5.20% Aegon NV 1,642 118,001 Allianz AG 900 346,340 Allied Zurich Plc 2,465 24,524 AMP, Ltd. 2,326 20,376 Assicurazione Generali SpA 3,014 85,763 Axa 938 139,081 CGU Plc 1,932 27,704 Cie De Seguros Tranquilidad SA 65 1,909 Corporacion Mapfre Cia International 372 5,634 Generali Holding, Vienna 54 7,855 Legal & General Group Plc 14,174 37,075 Munchener Rueckversicherungs 600 175,911 Prudential Corporation Plc 3,499 53,661 QBE Insurance Group Ltd. 971 4,079 Riunione Adriatica de Sicurta 1,183 12,088 Sai Sta Assicuratrice Industrial 336 2,639 Sampo Insurance Company Ltd. 332 12,556 Skandia Forsakring AB 2,100 100,480 Swiss Ruckversicher 45 72,306
The accompanying notes are an integral part of the financial statements. 43 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Insurance - cont'd. Tokio Marine & Fire Insurance Co. 6,000 $58,547 Zurich Allied AG 140 59,505 ------------ 1,366,034 Leisure & Tourism - 0.48% Accor SA 526 19,534 Autogrill SpA 505 4,821 Compass Group Plc 1,002 14,431 Hilton Group Plc 2,840 11,939 Hongkong & Shanghai Hotels Ltd. 1,500 809 Hotel Properties Ltd. 6,000 5,344 Oriental Land Company Plc 400 42,476 Rank Group Plc 1,704 3,920 Shangri-La Asia Ltd. 2,000 2,234 Sol Melia SA 495 6,075 Tabcorp Holdings Ltd. 788 4,218 Telepizza SA 1,144 9,246 ------------ 125,047 Machinery & Engineering - 0.96% Atlas Copco AB Ser A 500 11,683 Atlas Copco AB Ser B 300 6,859 BWT (Benckiser) AG 13 3,817 GKN Plc 2,453 33,991 Kawasaki Heavy Industries Ltd. 1,000 1,120 Komatsu Ltd. 4,000 19,257 Kubota Corp. Ltd. 1,000 3,259 Linde AG 350 13,739 Man AG 500 16,523 Metso 488 6,433 Mitsubishi Heavy Industries Ltd. 15,000 46,660 Mitsui Engineering & Shipbuilding Co. 800 496 Sembcorp Industries Ltd. 12,000 12,657 SMC Corporation 300 59,714 Stork NV 143 1,768 Sulzer AG 10 6,402 VA Technologies AG 115 6,846 Zardoya Otis SA 248 2,036 ------------ 253,260 Merchandising - 2.32% Boots Company Plc 1,880 14,438 Carrefour 1,595 103,821 Casino Guichard Perrachon 224 20,445 Coles Myer Ltd. 2,687 10,062 Daiei, Inc. 1,000 2,963 Dixons Group 2,573 10,416 Douglas Holding AG 350 10,977 Great Universal Stores Plc 1,704 10,320 Hennes & Mauritz AB 3,200 84,943 Ito-Yokado Company Ltd. 1,000 73,045 Jusco Company Ltd. 2,000 37,032 Karstadt AG 100 3,045 Kingfisher Plc 2,640 21,579 KoninklijkeAhold NV 1,752 40,854
Shares Value ------ ----- Merchandising - cont'd. Marks & Spencer Plc 4,980 $18,434 Marui Company Ltd. 1,000 18,794 Pinault-Printemps Redoute 357 72,017 Rinascente Per L'Esercizio 527 2,395 J. Sainsbury Plc 3,214 16,764 Tesco Plc 6,258 21,289 Valora Holding AG 20 5,196 Woolworths Ltd. 2,745 9,237 ------------ 608,066 Metals - Non-Ferrous - 0.20% Companhia Siderurgica Nacional 86,000 2,429 North Ltd. 999 1,718 Outakumpu 394 4,639 Pechiney SA 247 10,823 Rio Tinto Ltd. 274 4,070 Rio Tinto Plc 1,198 18,652 WMC Ltd. 2,651 11,008 ------------ 53,339 Metals - Steel - 0.60% Acerinox SA 222 8,779 Boehler-Uddeholm 32 1,247 Corus Group Plc 2,590 3,488 Kawasaki Steel Corporation 5,000 7,777 Natsteel Ltd. 3,000 7,348 Nippon Steel Corporation 28,000 62,991 Pohang Iron & Steel Co. Ltd. 60 4,693 Sandvik AB Ser A 300 7,160 Sandvik AB Ser B 800 19,273 SSAB Swedish Steel 300 3,446 Sumitomo Metal Industries Ltd. 5,000 3,240 Thyssen Krupp AG 900 18,900 Usinor 757 9,944 ------------ 158,286 Misc Materials & Commodities - 0.39% Asahi Glass Company Ltd. 6,000 52,659 Caradon Plc 1,594 3,971 Cie de Saint Gobain 267 36,434 Corticeira Amorim Socdad Gestora 158 1,230 Mayr-Melnhof Karton AG 92 4,339 Pilkington Plc 3,237 3,578 ------------ 102,211 Multi-Industry - 0.92% Alusuisse Lonza Group AG 10 6,332 Corporacion Financiera Alba SA 444 11,496 Hutchison Whampoa Ltd. 5,000 72,536 Invensys Plc 6,839 33,009 Keppel Corporation Ltd. 5,000 11,603 Lagardere Groupe SCA 448 30,342 Metra AB 211 3,434 Pacific Dunlop Ltd. 2,596 2,183 Preussag AG 500 20,550 SNIA SpA 1,145 1,063
The accompanying notes are an integral part of the financial statements. 44 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Multi-Industry - cont'd. Sonae Investimentos SA 332 $13,341 Southcorp Ltd. 1,529 4,769 Sumitomo Corporation 1,000 11,202 Swire Pacific Ltd. 2,000 11,298 T.I. Group Plc 1,043 5,667 Trelleborg AB 700 4,015 ------------ 242,840 Real Estate - 3.24% AMP Diversified Porperty Trust 949 1,319 Beni Stabili SpA 3,094 1,533 British Land Company Plc 12,859 85,439 Burford Holdings PlC 6,010 7,715 Canary Wharf Group 6,333 34,511 Capital Shopping Centres Plc 2,710 15,991 Castellum AB 1,290 11,942 Cheung Kong Holdings Ltd. 3,000 35,819 Cie Fonciere Klepierre 260 21,509 City Developments Ltd. 4,000 18,166 DBS Land Ltd. 8,000 11,345 First Capital Corporation Ltd. 2,000 2,004 Frogmore Estates PlC 500 3,507 Gecina 120 11,095 General Property Trust Units 3,413 5,282 Grantchester Holdings Plc 14,550 32,735 Great Portland Estates Plc 6,370 20,816 Hammerson Plc 4,410 28,941 Hang Lung Development Co. Ltd. 3,000 2,330 Hopewell Holdings Ltd. 2,000 924 Hysan Development Co. Ltd. 2,000 2,247 Immeubles de France 430 7,033 IMMSI SpA 448 701 Inmobiliaria Colonial 641 8,450 Land Securities Plc 7,134 86,081 Lend Lease Corp. Ltd. 1,318 14,283 MEPC Plc 7,782 51,494 Metrovacesa SA 1,359 22,918 Mitsubishi Estate Company Ltd. 4,000 44,994 Mitsui Fudosan Company Ltd. 2,000 20,331 New World Development Co. Ltd. 3,057 4,141 Parkway Holdings Ltd. 3,000 8,614 Rodamco Continental Europe NV 330 11,430 SILIC 50 6,591 SIMCO 300 19,391 Sino Land Company Ltd. 4,123 1,548 Slough Estates 6,513 36,100 Stockland Trust Group 794 1,609 Ste Fonciere Lyonnaise SA 120 12,196 Sun Hung Kai Properties Ltd. 3,000 23,494 Tornet Fastighets AB 710 9,186 Unibail SA 260 32,855 Uni-Invest NV 1,110 12,059 United Industrial Corp. Ltd. 10,000 4,190 United Overseas Land Ltd. 4,000 2,907
Shares Value ------ ----- Real Estate - cont'd. Vallehermoso SA 5,192 $35,117 Wates City of London Properties Plc 3,740 4,287 Westfield Trust 3,356 6,154 Wharf Holdings Ltd. 3,000 6,220 ------------ 849,544 Recreation - Other Consumer Goods - 0.85% Adidas Salomon AG 200 12,809 Fuji Photo Film Company Ltd. 2,000 80,174 Nintendo Company Ltd. 600 99,986 Ste. BIC 192 7,645 The Swatch Group AG 20 21,432 ------------ 222,046 Telecommunications - 6.14% British Telecommunications Plc 5,423 97,098 Cable & Wireless HKT Ltd. 5,178 12,232 Deutsche Telekom AG 2,588 167,963 France Telecom SA 860 133,067 Koninklijke KPN NV 345 34,767 Marconi Plc 3,327 41,388 Netcom AB 100 7,105 Nippon Telegraph & Telephone 11 136,463 Portugal Telecom SA 1,598 17,825 Sagem SA 10 12,436 Singapore Telecommunications Ltd. 10,900 15,713 SK Telecom Co. Ltd. 100 26,583 Sonera Corporation 613 33,715 Swisscom AG 50 17,628 Telecom Italia Mobile SpA Eur 20,959 167,483 Telecom Italia SpA Itl1000 Ords 3,116 43,568 Telecom Italia SpA Itl1000 Risp 346 2,180 Telefonica SA 3,536 78,693 Telesp Celular Participacoes SA 464,000 7,213 Telstra Corporation Ltd. 6,524 27,966 TNT Post Groep NV 1,432 31,244 Vodafone Airtouch Plc 109,046 499,151 ------------ 1,611,481 Textiles & Apparel - 0.03% Benetton Group SpA 4,146 7,632 Toyobo Company Ltd. 800 1,126 ------------ 8,758 Transportation - Airlines - 0.34% Japan Airlines Company Ltd. 2,000 6,221 Singapore Airlines Ltd. 8,000 82,977 ------------ 89,198 Transportation - Road & Rail - 1.02% Brisa Auto-Estradas de Portugal 2,155 15,222 Central Japan Railway Company 10 53,696 East Japan Railway Company 19 112,577 Hankyu Corp. 200 620 Kinki Nippon Railway Company Ltd. 11,000 41,550 Nippon Express Company Ltd. 6,000 37,884
The accompanying notes are an integral part of the financial statements. 45 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Transportation - Road & Rail - cont'd. Nippon Yusen 1,000 $3,981 Odakyu Electric Railway Co. Ltd. 470 1,401 ------------ 266,931 Transportation - Shipping - 0.07% Koninklijke Nedlloyd NV 77 1,628 Neptune Orient Lines Ltd. 4,000 3,586 Peninsular & Orient Steam Navigation 1,204 11,904 ------------ 17,118 Utilities - Electrical & Gas - 4.44% Australian Gas Light Company 1,192 6,196 BG Plc 9,090 54,877 Centrica Plc 11,408 40,852 CLP Holdings Ltd. 4,500 20,163 Electricidade de Portugal 4,681 82,982 Endesa SA 5,627 122,772 Gas Natural Sdg SA 2,610 43,659 Hongkong & China Gas Company Ltd. 11,700 12,768 Iberdrola SA 5,247 67,305 Italgas Sta Italiana Per Il Gas 2,122 9,356 Kansai Electric Power Co., Inc. 6,000 94,431 National Grid Group Plc 3,287 27,124 National Power Plc 3,488 15,871 Oesterreichische Elektrizitaets 235 24,267 Osaka Gas Company Ltd. 11,000 30,042 Petroleo Brasilieros SA 59,000 13,071 RWE AG 2,050 66,477 Tohoku Electric Power Co., Inc. 3,000 35,384 Tokyo Electric Power Co., Inc. 7,400 174,698 Tokyo Gas Co. 3,000 6,610 Union Electrica Fenosa 1,743 33,577 Veba AG 2,350 117,928 Viag AG 3,400 66,332 ------------ 1,166,742 Wholesale & International Trade - 1.03% Hagemeyer NV 243 4,783 Kesko Corporation 547 5,967 Metro AG 900 35,019 Mitsubishi Corporation 1,000 8,703 Mitsui & Company 1,000 7,416 Softbank Corporation 800 197,010 Sumitomo Corporation 1,000 11,202 ------------ 270,100 TOTAL COMMON STOCKS (Cost $21,956,139) $23,363,632 ------------ PREFERRED STOCKS - 0.80% Automobiles - 0.02% Volkswagen AG 150 $3,300 ------------ Banks - 0.05% Banco Bradesco SA 527,000 3,853 Banco Itau SA 116,000 8,673 ------------ 12,526
Shares Value ------ ----- Broadcasting & Publishing - 0.16% News Corporation 4,023 $43,277 ------------ Electric Utilities - 0.02% Cemig (Cia Energetica de Minas) 249,000 3,792 RWE AG 50 1,314 ------------ 5,106 Food & Beverages - 0.05% Brahma (Cia Cervejaria) 5,000 3,628 Unilever NV 1,951 9,134 ------------ 12,762 Food & Drug Retailing - 0.01% Pao de Acucar Cia 116,000 3,309 ------------ Oil & Gas - 0.03% Petrol Brasilieros 42,000 10,005 ------------ Paper & Forest Products - 0.01% Aracruz Celulos SA 1,000 1,894 ------------ Software - 0.34% Sap AG 150 88,433 ------------ Telecommunications - 0.11% Embratel Participacoes SA 279,000 6,258 Tele Centro Sul Participacoes SA 282,000 3,686 Tele Norte Leste Participacoes SA 274,000 5,612 Telecomunicoes del Sao Paulo SA 316,000 7,874 Tele Sudeste Celular SA 105,000 879 Telesp Cellular Participacoes SA 242,000 4,343 ------------ 28,652 ------------ TOTAL PREFERRED STOCKS (Cost $168,365) $209,264 ------------ RIGHTS & WARRANTS - 0.01% Banca Intesa SpA 747 $1,307 Banque Nationale de Paris 338 1,921 ------------ TOTAL RIGHTS AND WARRANTS (Cost $6,476) $3,228 ------------ Principal Value --------- ----- CORPORATE BONDS - 0.00% AMP Group Finance, 7.593% due 12/29/49 $14 $7 ------------ TOTAL CORPORATE BONDS (Cost $1,509) $7 ------------ SHORT TERM INVESTMENTS - 0.00% SSGA Money Market Fund 1,000 $1,000 ------------ REPURCHASE AGREEMENT - 10.20% Repurchase Agreement with State Street Bank & Trust Co. dated 04/28/00 at 4.75%, to be repurchased at $2,680,043 on 05/01/00, collateralized by $2,540,000,000 U.S. Treasury Bonds, 6.75% due 08/15/26 (valued at $2,770,444, including interest) (Cost $2,679,000) $2,679,000 ------------ TOTAL INVESTMENTS (International Equity Fund) (Cost $24,812,489) $26,256,131 ------------
The accompanying notes are an integral part of the financial statements. 46 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - -------------------------------------------------------------------------------- - ----------------------------------------------------- Global Equity Fund - -----------------------------------------------------
Shares Value ------ ----- COMMON STOCKS - 92.60% Air Freight & Couriers - 0.81% TNT Post Groep NV* 19,625 $428,186 ------------ Auto Components - 2.07% Perlos Corp. 15,650 579,767 Toyoda Gosei* 9,000 520,761 ------------ 1,100,528 Automobiles - 0.67% General Motors Corp.* 2,852 274,683 Harley Davidson, Inc.* 2,018 80,342 ------------ 355,025 Banking - 3.44% Banco Santander Central Hispano* 32,275 336,544 Fifth Third Bancorp 1,314 82,946 Foreningssparbank 34,475 507,551 Nordic Baltic Holding 74,425 468,995 Northern Trust Corp. 903 57,905 Sao Paolo IMI SpA* 26,650 373,104 ------------ 1,827,045 Beverages - 0.81% Heineken NV 7,775 431,163 ------------ Biotechnology - 0.47% Amgen, Inc.* 3,174 177,744 Human Genome Sciences, Inc.* 285 21,820 PE Corp. Celera Genomics Group* 602 49,665 ------------ 249,229 Commercial Services & Supplies - 0.80% Automatic Data Processing, Inc. 3,880 208,792 Cendant Corp.* 4,816 74,347 Devry, Inc.* 6,049 144,042 ------------ 427,181 Communications Equipment - 8.65% Alcatel* 2,400 556,369 Ciena Corp.* 904 111,757 Cisco Systems, Inc.* 11,424 792,004 Comverse Technology, Inc.* 2,152 191,932 E Tek Dynamics, Inc.* 651 133,292 Ericsson Telephone Co.* 6,675 590,320 JDS Uniphase Corp.* 5,388 558,668 Nokia Corp. 24,243 1,378,821 Redback Networks, Inc.* 1,141 90,567 Sycamore Networks, Inc.* 821 64,449 Tellabs, Inc.* 2,284 125,192 ------------ 4,593,371 Computers & Peripherals - 2.79% Dell Computer Corp.* 3,139 157,342 E M C Corp.* 2,438 338,730 Juniper Networks, Inc.* 744 158,239 NEC Corp.* 23,000 626,024
Shares Value ------ ----- Computers & Peripherals - cont'd. Network Appliance, Inc.* 738 $54,566 Sun Microsystems, Inc.* 1,567 144,066 ------------ 1,478,967 Diversified Telecommunications - 5.52% Cable & Wireless 23,925 397,086 Embratel Participacoes SA* 10,875 244,688 Energis Plc* 3,375 166,679 Level 3 Communications, Inc.* 3,645 324,405 Nippon Telephone & Telegraph Corp.* 42 521,039 NTL, Inc.* 3,750 286,875 Swisscom AG* 1,170 412,490 Telefonos de Mexico SA 7,000 411,688 Teligent, Inc.* 1,043 39,113 Williams Communications Group* 1,698 62,826 Winstar Communications, Inc.* 1,599 63,760 ------------ 2,930,649 Electrical Equipment - 4.51% AT & T CDA, Inc. 8,375 356,984 Citizen Electronics* 3,440 433,125 Comdisco, Inc.* 2,622 81,446 Corning, Inc.* 1,727 341,083 Mitsubishi Electronics* 74,000 632,338 Nortel Networks Corp. 2,461 278,708 RF Micro Devices, Inc.* 2,593 269,834 ------------ 2,393,518 Electronic Equipment & Instruments - 6.48% Applied Micro Circuits Corp.* 2,108 271,669 Broadcom Corp.* 1,323 228,052 Jabil Circuit, Inc.* 2,339 95,753 Natsteel Electronics* 73,000 419,221 PE Corp.* 2,665 159,900 Philips Electronics NV* 19,375 864,609 Samsung Electronics Ltd.* 3,500 560,875 SDL, Inc.* 660 128,700 Solectron Corp.* 1,183 55,379 Sony Corp.* 2,000 231,449 Taiyo Yuden Co.* 6,000 424,941 ------------ 3,440,548 Energy Equipment & Services - 0.75% Saipem Spa* 80,500 398,113 ------------ Financial Services - 1.73% Aiful Corp.* 3,600 363,283 American Express Co. 653 97,991 Citigroup, Inc. 6,496 386,106 Charles Schwab Corp.* 1,570 69,865 ------------ 917,245 Food & Drug Retailing - 0.27% Walgreen Co.* 5,199 146,222 ------------ Food Products - 0.75% Ajinomoto Co., Inc.* 35,000 400,176 ------------
The accompanying notes are an integral part of the financial statements. 47 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Gas Utilities - 0.60% Tokyo Gas Co.* 146,000 $321,696 ------------ Health Care Equipment & Supplies - 2.63% Affymetrix, Inc.* 409 55,241 Baxter International, Inc. 4,782 311,428 Guidant Corp.* 5,428 311,431 Nycomed Amersham* 43,650 333,008 Synthes-Stratec, Inc. 144A 900 383,056 ------------ 1,394,164 Hotels, Restaurants & Leisure Time - 0.97% Accor* 8,700 323,089 Carnival Corp.* 2,491 61,964 McDonald's Corp. 3,477 132,561 ------------ 517,614 Household Durables - 3.83% Electrolux AB 19,775 334,141 Philips Electronics 18,480 824,384 Pioneer Electronics* 25,000 682,775 Thomson Multimedia 1,950 191,456 ------------ 2,032,756 Household Products - 0.27% Colgate Palmolive Co. 2,549 145,612 ------------ Industrial Conglomerates - 3.12% Berkshire Hathaway, Inc.* 68 130,296 Cemex SA* 14,600 319,375 General Electric Co. 4,319 679,163 Tyco International Ltd. 11,473 527,041 ------------ 1,655,875 Insurance - 1.42% Alleanza Assicurazioni* 49,725 514,433 American International Group, Inc.* 2,199 241,203 ------------ 755,636 Internet Software & Services - 0.44% 7-24 Solutions, Inc.* 358 18,079 Yahoo!* 1,643 214,001 ------------ 232,080 I T Consulting & Services - 1.39% Altran Technologie* 1,850 378,076 Tietoenator OYJ* 7,425 357,754 ------------ 735,830 Machinery - 1.32% Danaher Corp. 2,270 129,674 Invensys 117,900 569,050 ------------ 698,724 Media - 7.09% AMFM, Inc.* 2,367 157,110 A T & T Corp.-Liberty Media Group* 8,293 414,132 Comcast Corp.* 6,342 254,076 Walt Disney Co. 3,212 139,120 Echostar Communications Corp.* 4,215 268,443 Exodus Communications, Inc.* 694 61,376
Shares Value ------ ----- Media - cont'd. Nippon TV Network* 610 $455,742 Omnicom Group 1,170 106,543 Socite Europeenne Satellite* 2,675 406,422 Time Warner, Inc. 7,250 652,047 United Global Com* 6,375 338,672 USA Networks, Inc.* 5,009 115,207 Viacom, Inc.* 7,298 396,829 ------------ 3,765,719 Multiline Retail - 2.80% Costo Wholesale Corp. 8,912 481,805 Don Quijote Ltd.* 1,107 187,549 Kohl's Corp.* 4,952 237,696 Vivendi* 5,850 578,624 ------------ 1,485,674 Oil & Gas - 2.41% BP Amoco Plc* 6,775 345,525 Petroleo Brasilieros* 1,775,000 393,243 Total Fina Elf* 3,570 541,672 ------------ 1,280,440 Paper & Forest Products - 0.56% Aracruz Celulose SA* 15,900 297,131 ------------ Personal Products - 0.10% Gillette Co. 1,401 51,837 ------------ Pharmaceuticals - 5.58% American Home Products Corp.* 929 52,198 Ares-Serano SA* 105 322,388 Bristol Myers Squibb Co. 2,324 121,865 Genentech, Inc.* 1,489 174,213 IDEC Pharmaceuticals Corp.* 411 26,304 Incyte Pharmaceuticals, Inc.* 234 18,018 Medimmune, Inc.* 426 68,133 Lilly, Eli & Co.* 2,961 228,922 Merck & Company, Inc. 2,015 140,043 Novo Nordisk AS 3,325 446,396 Pfizer, Inc.* 7,129 300,309 Sankyo Company* 1,000 22,034 Schering Plough Corp.* 3,561 143,553 Takeda Chemical Industries* 5,000 329,121 Warner Lambert Company 4,988 567,697 ------------ 2,961,194 Road & Rail - 1.06% Nippon Express Company* 89,000 561,940 ------------ Semiconductor Equipment & Products - 4.80% Analog Devices, Inc.* 1,576 121,057 ASM Lithography Holding NV* 10,725 429,000 Intel Corp.* 5,453 691,508 Maxim Integrated Prouducts, Inc.* 2,330 151,013 STMicroelectronics* 2,000 381,640 Texas Instruments, Inc. 3,561 579,998 Vitesse Semiconductor Corp.* 2,849 193,910 ------------ 2,548,126
The accompanying notes are an integral part of the financial statements. 48 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Software - 4.36% Amdocs Limited* 554 $37,499 Ariba, Inc.* 1,292 95,850 Business Objects SA* 806 78,887 Checkpoint Software* 1,075 185,975 Dassault Systemes* 5,800 446,077 Foundry Networks, Inc.* 485 44,135 Inktomi Corp. 2,104 323,884 Mercury Interactive Corp.* 1,427 128,430 Oracle Corp.* 2,849 227,742 Siebel Systems, Inc.* 1,169 143,641 Tibco Software, Inc.* 1,087 96,811 Verisign, Inc.* 1,916 267,043 Veritas Software Corp.* 2,243 240,597 ------------ 2,316,571 Specialty Retail - 0.57% Home Depot, Inc. 5,422 303,971 ------------ Textiles & Apparel - 0.61% Swatch Group* 300 321,475 ------------ Tobacco - 0.79% Altadis SA* 35,650 419,054 ------------ Wireless Telecommunication Services - 5.36% China Telecom Ltd.* 48,000 343,553 HPY Holding 11,000 396,104 Netcom ASA* 9,075 359,616 Nextel Communications, Inc.* 2,497 273,265 Partner Communication Company, Ltd.* 32,100 343,069 Sprint Corp.* 3,028 166,540 Vodaphone Airtouch Public Ltd. 145,000 663,728 Vodaphone Airtouch Group Plc 1,734 81,498 VoiceStream Wireless Corp.* 2,191 216,909 ------------ 2,844,282 TOTAL COMMON STOCKS (Cost $51,025,063) $49,164,567 ------------ PREFERRED STOCK - 0.62% Marschollek Lauten* (Cost $361,249) 625 $332,077 ------------ Principal Value --------- ----- REPURCHASE AGREEMENT - 6.78% Repurchase Agreement with State Street Bank & Trust Co. dated 04/28/00 at 4.75%, to be repurchased at $3,598,400 on 05/01/00, collateralized by $3,775,000 U.S. Treasury Notes, 5.625% due 05/15/08 (valued at $3,770,496, including interest) (Cost $3,597,000) $3,597,000 $3,597,000 ------------ SHORT TERM INVESTMENTS - 0.00% SSGA Money Market Fund 1,000 1,000 ------------ TOTAL INVESTMENTS (Global Equity Fund) (Cost $54,984,312) $53,094,644 ------------
- ---------------------------------------------------- Small Cap Growth Fund - ----------------------------------------------------
Shares Value ------ ----- COMMON STOCKS - 91.96% Air Freight & Couriers - 2.05% Airborne Freight Corp. 4,700 $ 100,756 EGL, Inc. 600 13,762 ------------ 114,518 Biotechnology - 2.14% Gene Logic 800 21,500 Lynx Therapeutics, Inc. 1,200 28,800 Medarex, Inc. 1,300 68,900 ------------ 119,200 Commercial Services & Supplies - 0.92% DeVry, Inc. 800 19,050 Getty Images, Inc. 1,000 30,375 Strayer Education, Inc. 100 2,056 ------------ 51,481 Communications Equipment - 14.09% About.com, Inc. 600 20,588 Adaptive Broadband Corp. 1,400 45,500 Advanced Fibre Communications 1,000 45,688 Airnet Communications Corp. 100 1,775 Antec Corp. 2,000 107,500 Aspect Communications, Inc. 100 3,550 Audio Codes, Ltd. 500 37,500 Gilat Satellite Networks, Ltd. 300 25,762 Marimba, Inc. 1,500 29,719 Odetics, Inc. 3,700 38,850 Pairgain Technologies, Inc. 2,500 62,188 Polycom, Inc. 700 55,387 Powerwave Technologies, Inc. 700 145,644 Proxim, Inc. 500 38,469 Seachange International. Inc. 1,500 45,000 Tekelec, Inc. 1,700 59,500 Westell Technologies 800 22,750 ------------ 785,370 Computers & Peripherals - 5.55% DSP Group, Inc. 1,300 92,462 Emulex Corp. 300 13,613 Excelon Corporation 3,100 36,425 Interlink Electronics 2,300 69,000 Radiant Systems, Inc. 1,800 33,525 Sandisk Corp. 700 64,138 ------------ 309,163 Diversified Financial - 0.58% Americredit Corp. 900 16,819 Frontline Capital Group 900 15,412 ------------ 32,231 Diversified Telecommunication - 3.42% Caprock Communications Corp 400 13,400 CTC Communications Group, Inc. 1,950 65,813 Powertel, Inc. 800 53,800 Viatel, Inc. 1,500 57,375 ------------ 190,388
The accompanying notes are an integral part of the financial statements. 49 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Electrical Equipment - 3.91% Anaren Microwave, Inc. 1,000 $104,000 Asyst Technologies, Inc. 1,100 58,850 Harris Corp. 1,700 54,931 ------------ 217,781 Electronic Equipment & Instruments - 4.04% Anadigics, Inc. 900 67,725 California Amplifier, Inc. 2,200 59,400 Newport Corp. 600 72,788 Versant Corp. 3,900 25,350 ------------ 225,263 Energy Equipment & Services - 8.10% BJ Services Company 1,200 84,300 Cooper Cameron Corp. 900 67,500 National Oil Well, Inc. 1,200 28,725 Petroleum Geo Services, Inc. 800 13,000 Precision Drilling Corp. 2,200 70,400 Rowan Companies, Inc. 2,200 61,463 Smith International, Inc. 1,100 83,600 Stone Energy Corp. 900 42,525 ------------ 451,513 Health Care & Pharmaceuticals - 7.68% Abgenix, Inc 400 35,825 Alkermes, Inc. 1,300 69,225 Advance Paradiam, Inc. 1,600 20,000 ChiRex, Inc. 1,300 22,100 Coherent, Inc. 1,000 57,812 Diversa Corp. 1,100 29,700 Medicis Pharmaceutical Corp. 1,100 48,125 Mid Atlantic Medical Services, Inc. 4,100 38,181 Minimed, Inc. 500 61,469 Oxford Health Plans, Inc. 2,400 45,600 ------------ 428,037 Industrial Mfg. & Processing - 1.95% Advanced Energy Industries, Inc. 500 34,500 Applied Power, Inc. 2,600 74,425 ------------ 108,925 Insurance - 0.31% Enhance Financial Services Group, Inc. 700 7,087 Reinsurance Group of America, Inc. 400 9,950 ------------ 17,037 Internet & Catalog Retail - 0.57% Valuevision International, Inc. 1,600 31,900 ------------ Internet Software & Services - 0.76% Spyglass, Inc. 800 42,400 ------------ I T Consulting & Services - 1.59% Acxiom Corp. 1,540 41,580 Titan Corp. 1,100 47,231 ------------ 88,811 Leisure Time - 0.54% American Classic Voyages Co. 1,500 30,094 ------------
Shares Value ------ ----- Media - 2.47% Cumulus Media, Inc. 1,200 $15,750 Entercom Communications Corp. 900 38,250 Information Architects Corp. 3,600 39,600 Pegasus Communications Corp. 300 32,738 Salem Communications Corp. 1100 8,387 Youthstream Media Networks, Inc. 500 3,188 ------------ 137,913 Retail Trade - 0.77% Ames Department Stores, Inc. 1,000 17,938 Ann Taylor Stores Corp. 1,200 24,825 ------------ 42,763 Semiconductor Equipment & Products - 10.21% Alpha Industries, Inc. 1,800 93,600 Avant Corp. 500 9,000 Burr-Brown Corp. 1,700 115,813 C-Cube Microsystems, Inc. 1,100 70,675 Cymer, Inc. 1,100 42,969 Photronics, Inc. 1,700 56,631 PRI Automation, Inc. 800 63,900 Telcom Semiconductor, Inc. 2,000 49,125 Varian Semiconductor Equipment, Inc. 1,000 67,250 ------------ 568,963 Software - 20.31% Allaire Corp. 1,000 55,062 American Software, Inc. 1,300 9,750 Aspect Development , Inc. 1500 103,687 Backweb Technologies, Ltd. 2,300 53,906 Bluestone Software, Inc. 1,300 27,381 Breakaway Solutions, Inc. 200 5,275 Broadbase Software, Inc. 100 1,581 Broadvision, Inc. 739 32,470 Business Objects SA 900 88,087 Clarus Corp. 800 32,150 Documentum, Inc. 1,400 82,600 Exchange Applications, Inc. 1,800 21,938 Hotjobs.com, Ltd. 2,300 26,738 Internet.com Corp. 200 3,800 Iona Technologies PLC 700 39,769 Manugistics Group, Inc. 1,700 72,781 Mercury Interactive Corp. 1,200 108,000 National Instruments Corp. 450 21,937 Packeteer, Inc. 1,900 42,750 Peregrine Systems, Inc. 2,600 62,563 Puma Technology, Inc. 800 24,500 QRS Corp. 800 26,400 Remedy Corp. 1,400 74,375 RSA Sec, Inc. 600 35,212 Santa Cruz Operation, Inc. 1,700 10,306 Sybase, Inc. 1,300 26,244 Unify Corp. 2,600 31,200
The accompanying notes are an integral part of the financial statements. 50 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Software - cont'd. Wind River Systems, Inc. 200 $8,537 Zapme Corp. 800 3,100 ------------ 1,132,099 TOTAL COMMON STOCKS (Cost $5,059,786) $5,125,850 ------------ Principal Value --------- ----- SHORT TERM INVESTMENTS - 8.04% SSGA Money Market Fund $447,988 $447,988 ------------ TOTAL INVESTMENTS (Small Cap Growth Fund) (Cost $5,507,774) $5,573,838 ------------ - ------------------------------------------------------------ Mid Cap Growth Fund - ------------------------------------------------------------ Shares Value ------ ----- COMMON STOCKS - 99.10% Advertising - 0.84% Lamar Advertising Co. 3,250 $143,203 Young & Rubicam, Inc. 5,400 300,712 ------------ 443,915 Automobiles - 0.64% General Motors Corp. 3,550 341,909 ------------ Banks - 0.52% Northern Trust Corp. 4,300 275,738 ------------ Biotechnology - 6.99% Celgene Corp. 11,575 544,748 Chiron Corp. 5,750 260,188 Cor Therapeutics, Inc. 5,650 430,459 Human Genome Sciences, Inc. 3,950 302,422 Idec Pharmaceuticals Corp. 3,350 214,400 Medarex, Inc. 4,050 214,650 Medimmune, Inc.* 2,700 431,831 Millennium Pharmaceuticals 6,240 495,300 Protein Design Labs, Inc. 4,500 456,750 Sepracor, Inc.* 3,800 349,600 ------------ 3,700,348 Business Services - 1.59% CSG Systems International, Inc.* 3,550 163,744 Paychex, Inc. 9,850 518,356 Robert Half International, Inc. 2,600 158,925 ------------ 841,025 Communications Equipment - 7.61% Brocade Communications Systems, Inc. 5,050 626,200 Ciena Corp. 3,800 469,775 Comverse Technology, Inc. 5,800 517,288 Covad Communications Group, Inc. 5,550 154,013 Crown Castle International Corp. 7,600 291,650 E Tek Dynamics, Inc. 1,600 327,600 Entrust Technologies, Inc. 1,700 83,512 Extreme Networks, Inc. 3,850 221,856 Go2net 4,600 273,700
Shares Value ------ ----- Communications Equipment - cont'd. Metromedia Fiber Network, Inc. 7,500 $231,563 Real Networks, Inc. 2,600 123,825 Redback Networks, Inc. 4,200 333,375 Scient Corp. 3,400 183,600 Verio, Inc. 1,700 63,856 Visual Networks, Inc. 3,350 130,650 ------------ 4,032,463 Computers & Peripherals - 3.13% Apple Computer 1,550 192,297 Doubleclick, Inc. 5,050 383,169 Network Appliance, Inc. 12,600 931,612 Proxicom, Inc. 4,400 150,425 ------------ 1,657,503 Diversified Telecommunication - 5.03% Allegiance Telecom, Inc. 5,750 406,812 Coflexip 3,000 152,250 Colt Telecommunications Group Plc 2,550 435,412 ITC Deltacom 3,850 126,569 McLeodUSA, Inc. 18,750 468,750 NTL, Inc. 3,400 260,100 RCN Corp. 3,400 97,325 Time Warner Telecommunications., Inc. 1,550 84,863 Viatel, Inc. 2,400 91,800 Voicestream Wireless Crop. 1,900 188,100 Western Wireless Corp. 4,900 243,469 WinStar Communications, Inc. 2,800 111,650 ------------ 2,667,100 Electric Utilities - 0.38% Citizens Utilities Co. 12,400 199,175 ------------ Electronic Equipment & Instruments - 8.25% AT & T CDA, Inc. 7,000 298,375 Applied Micro Circuits Corp. 4,700 605,712 Flextronics International, Ltd.* 8,200 576,050 Jabil Circuit, Inc. 3,100 126,906 MIPS Technologies, Inc. 5,100 147,263 Molex, Inc. 9,750 535,641 PE Corp. 5,900 354,000 RF Micro Devices, Inc. 4,950 515,109 Sanmina Corp. * 6,400 384,400 SDL, Inc. 4,250 828,750 ------------ 4,372,206 Energy Equipment & Services - 8.57% BJ Services Company 8,600 604,150 Cooper Cameron Corp. 9,000 675,000 Diamond Offshore Drilling, Inc. 3,900 157,219 Global Industries, Inc. 6,000 85,500 Global Marine, Inc. 8,350 200,400 Grant Pride, Inc. 10,950 210,787 Nabors Industries, Inc. 11,050 435,784 Noble Drilling Corp. 12,750 509,203 Santa Fe International Corp. 9,100 312,813 Smith International, Inc. 8,550 649,800
The accompanying notes are an integral part of the financial statements. 51 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Energy Equipment & Services - cont'd. Transocean Sedco Forex, Inc. 3,850 $180,950 Varco International, Inc. 5,900 73,750 Weatherford International, Inc. 10,950 444,844 ------------ 4,540,200 Financial Services - 2.82% Capital One Financial Corp 2,000 87,500 Edwards, A.G. Inc. 2,700 101,588 Knight Trimark Group, Inc. 6,500 244,969 Legg Mason, Inc. 2,850 107,766 Lehman Brothers Holdings, Inc. 500 41,031 T. Rowe Price & Associates, Inc. 3,100 118,187 Sei Investments Co. 1,450 173,094 Waddell & Reed Financial, Inc. Cl. A 17,442 464,393 Waddell & Reed Financial, Inc. Cl. B 6,429 154,698 ------------ 1,493,226 Healthcare Equipment & Supplies - 1.50% Affymetrix, Inc. 2,725 368,045 Allergan, Inc. 7,250 426,844 ------------ 794,889 Hotels, Restaurants & Leisure - 2.66% Gemstar International Group, Ltd. 8,350 386,187 Harrah's Entertainment, Inc. 26,650 547,991 MGM Grand, Inc. 16,150 476,425 ------------ 1,410,603 Internet & Catalog Retail - 0.24% CMG Information Services, Inc. 1,800 128,250 ------------ I T Consulting & Services - 1.70% Computer Sciences Corp. 3,550 289,547 Marchfirst, Inc. 3,100 66,069 Safeguard Scientifics, Inc. 5,100 212,925 Sungard Data Systems, Inc. 9,650 333,528 ------------ 902,069 Machinery - 0.12% Parker Hannafin Corp. 1,400 65,100 ------------ Media - 8.73% AMFM, Inc. 6,850 454,669 Cablevision Systems Corp. 4,300 291,056 Citadel Communications Corp. 4,900 191,406 Echostar Communications Corp. 17,100 1,089,056 Entercom Communications Corp. 6,450 274,125 Hispanic Broadcasting Corp. 3,050 308,241 New York Times Co. 6,000 247,125 Omnicom Group 3,500 318,719 TMP Worldwide, Inc. 5,650 369,369 USA Networks, Inc. 13,150 302,450 Valassis Communications, Inc. 8,650 294,641 Westwood One, Inc. 6,000 212,250 WPP Group 17,000 273,945 ------------ 4,627,052 Oil & Gas - 2.28% Anadarko Pete Co. 6,000 260,625 Apache Corp. 11,250 544,922
Shares Value ------ ----- Oil & Gas - cont'd. Kerr McGee Corp. 6,550 $338,962 Talisman Energy, Inc. 2,050 61,244 ------------ 1,205,753 Personal Products - 0.25% Estee Lauder Companies, Inc. 3,000 132,375 ------------ Pharmaceuticals - 5.91% Abgenix, Inc. 4,500 403,031 Alexion Pharmaceuticals, Inc. 1,500 66,937 Alza Corp. 8,950 394,359 Forest Laboratories, Inc.* 12,550 1,054,984 Imclone Systems, Inc. 5,050 459,550 Immunex Corp. 9,950 391,781 Inhale Therapeutic Systems 4,750 293,906 Ivax corp. 2,400 65,700 ------------ 3,130,248 Road & Rail - 0.76% Kansas City Southern Industries, Inc. 5,600 402,500 ------------ Semiconductor Equipment & Products - 11.25% Altera Corp.* 4,800 490,800 Conexant Systems, Inc.* 4,450 266,444 KLA Tencor Corp. 4,950 370,631 Linear Technology Corp. 6,300 359,888 LSI Logic Corp. 10,600 662,500 Maxim Integrated Products, Inc.* 9,300 602,756 Microchip technology, Inc. 4,650 288,591 Novellus Systems, Inc. 2,600 173,387 PMC Sierra, Inc. 5,150 988,156 Teradyne, Inc. 3,300 363,000 Transwitch Corp. 4,600 405,087 Vitesse Semiconductor Corp.* 5,500 374,344 Xilinx, Inc.* 8,450 618,962 ------------ 5,964,546 Software - 15.42% I2 Technologies, Inc. 650 84,013 Amdocs Limited* 8,900 602,419 Art Technology Group, Inc. 5,700 346,275 Aspect Development, Inc. 6,600 456,225 Bea Systems, Inc. 9,400 453,550 Broadvision, Inc. 10,200 448,162 Citrix Systems, Inc. 6,850 418,278 Edwards, J.D. & Company 3,900 71,175 Electrinics For Imaging, Inc. 3,500 182,875 Exodus Communications, Inc.* 6,600 583,688 Infospace, Inc. 1,200 86,175 Inktomi Corp. 3,200 492,600 Internap Network Services Corp. 6,300 242,550 Intertrust Technologies Corp. 650 14,950 Intuit 5,800 208,438 Mercury Interactive Corp. 7,150 642,500 Metasolv Software, Inc. 2,500 85,313 Peregrine Systems, Inc. 9,750 234,609 Portal Software, Inc. 5,950 272,956
The accompanying notes are an integral part of the financial statements. 52 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Software - cont'd. Sapient Corp. 2,100 $166,294 Siebel Systems, Inc. 6,700 823,263 Symantec Corp. 5,650 352,772 Verisign, Inc. 3,500 487,813 Viant Corp. 1,700 39,100 Vignette Corp. 5,850 282,897 Vitria Technology, Inc. 2,400 88,650 ------------ 8,167,540 Telecommunications - 1.91% Best Buy Company, Inc. 2,900 234,175 Circuit City Stores, Inc. 8,000 470,500 Tandy Corp. 5,350 304,950 ------------ 1,009,625 TOTAL COMMON STOCKS (Cost $57,902,978) $52,505,358 ------------ Principal Value --------- ----- SHORT TERM INVESTMENTS - 0.90% Repurchase Agreement with State Street Bank & Trust Co. dated 04/28/00 at 4.75%, to be repurchased at $474,184 on 05/01/00, collateralized by $470,000 U.S. Treasury Notes, 5.75% due 04/30/00 (valued at $485,557 including interest) (Cost $474,000) $474,000 $474,000 ------------ TOTAL INVESTMENTS (Mid Cap Growth Fund) (Cost $58,376,978) $52,979,358 ------------ - ------------------------------------------------------------------------------- Large Cap Growth Fund - ------------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 90.79% Automotive - 1.54% General Motors Corporation* 7,450 $717,528 Harley Davidson, Inc.* 4,681 186,362 ------------ 903,890 Banking - 0.97% Fifth Third Bancorp 9,079 573,112 ------------ Biotechnology - 1.31% Amgen, Inc.* 8,461 473,816 MedImmune, Inc.* 1,050 167,934 Perkin Elmer Corporation* 1,625 134,063 ------------ 775,813 Commercial Services & Supplies - 1.80% Automatic Data Processing, Inc. 9,692 521,551 Cendant Corp.* 12,050 186,022 Devry, Inc.* 14,782 351,996 ------------ 1,059,569
Shares Value ------ ----- Communications Equipment - 9.26% Ciena Corp.* 2,350 $290,519 Cisco Systems, Inc.* 29,718 2,060,293 Comverse Technology, Inc.* 5,300 472,694 E-Tek Dynamics, Inc.* 1,750 358,312 JDS Uniphase Corporation* 14,525 1,506,061 Redback Networks, Inc.* 3,000 238,125 Sycamore Networks, Inc.* 2,250 176,625 Tellabs, Inc.* 6,225 341,208 ------------ 5,443,837 Computers & Peripherals - 3.86% Dell Computer Corp.* 8,175 409,772 EMC Corporation* 6,520 905,873 Juniper Networks, Inc.* 2,000 425,375 Network Appliance, Inc.* 2,025 149,723 Sun Microsystems, Inc.* 4,136 380,254 ------------ 2,270,997 Diversified - 0.51% Berkshire Hathaway, Inc.* 156 298,916 ------------ Diversified Financial - 2.46% American Express Company 1,700 255,106 Citigroup, Inc. 17,418 1,035,282 Schwab, Charles Corp.* 3,544 157,708 ------------ 1,448,096 Electrical Equipment - 4.34% Comdisco, Inc.* 7,025 218,214 Corning, Inc.* 4,475 883,813 Nortel Networks Corporation 6,425 727,631 RF Micro Devices, Inc.* 6,925 720,633 ------------ 2,550,291 Electronic Equipment - 4.05% Applied Micro Circuits Corporation* 5,275 679,816 Broadcom Corp.* 3,450 594,694 Jabil Circuit, Inc.* 5,825 238,461 Perkin Elmer Corporation* 6,339 380,340 SDL, Inc.* 1,775 346,125 Solectron Corporation* 3,050 142,778 ------------ 2,382,214 Food & Drug Retailing - 0.65% Walgreen Co.* 13,625 383,203 ------------ Health Care Equipment & Supplies - 3.07% Affymetrix, Inc. 1,100 148,569 Baxter International, Inc. 12,525 815,691 Guidant Corporation* 14,675 841,978 ------------ 1,806,238 Household Products - 0.62% Colgate Palmolive Co. 6,339 362,115 ------------ Insurance - 1.02% American International Group, Inc. 5,465 599,442 ------------
The accompanying notes are an integral part of the financial statements. 53 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Industrial Conglomerates - 5.54% General Electric Company 11,863 $1,865,457 Tyco International, Ltd. 30,343 1,393,882 ------------- 3,259,339 Lodging & Restaurants - 0.59% Mcdonalds Corporation 9,100 346,938 ------------- Media - 10.95% AMFM, Inc.* 6,463 428,982 A T & T Corp-Liberty Media Group* 20,650 1,031,209 Comcast Corporation* 16,500 661,031 Disney, Walt Company 9,075 393,061 Echostar Communications Corp.* 10,346 658,911 Omnicom Group 3,025 275,464 Time Warner, Inc. 19,715 1,773,118 USA Networks, Inc.* 12,850 295,550 Viacom, Inc.* 16,950 921,656 ------------- 6,438,982 Motor Vehicle Parts - 0.37% Danaher Corporation 3,799 217,018 ------------- Pharmaceuticals - 7.79% American Home Products Corp. 2,925 164,348 Bristol-Myers Squibb Company 5,927 310,797 Genentech, Inc.* 3,750 438,750 Idec Pharmaceuticals Corp.* 1,150 73,600 Lilly, Eli & Co.* 7,800 603,037 Merck & Company, Inc. 5,275 366,612 Pfizer, Inc.* 19,700 829,862 Schering Plough Corporation* 9,325 375,914 Warner Lambert Company 13,135 1,494,927 ------------- 4,657,847 Personal Products - 0.24% Gillette Company 3,802 140,674 ------------- Retail Trade - 4.33% Costco Wholesale Corp.* 21,750 1,175,859 Home Depot, Inc. 13,194 739,689 Kohl's Corporation* 13,206 633,888 ------------- 2,549,436 Semiconductor Equipment & Products - 7.70% Analog Devices, Inc.* 4,225 324,533 Intel Corporation* 14,202 1,800,991 Maxim Integrated Products, Inc.* 5,825 377,533 Texas Instruments, Inc. 9,325 1,518,809 Vitesse Semiconductor Corporation* 7,475 508,767 ------------- 4,530,633 Software - 8.36% 7-24 Solutions, Inc.* 950 47,975 Amdocs Limited* 1,400 94,763 Ariba, Inc.* 3,600 267,075 Business Objects SA* 2,150 210,431 Foundry Networks, Inc.* 1,300 118,300 Inktomi Corporation* 5,525 850,505 Mercury Interactive Corp.* 3,950 355,500
Shares Value ------ ----- Software - cont'd. Momentum Business Applications* 22 $165 Oracle Corp.* 7,625 609,523 Siebel Systems, Inc.* 3,050 374,769 Tibco Software, Inc.* 1,600 142,500 Verisign, Inc.* 5,050 703,844 Veritas Software Corporation* 5,643 605,300 Yahoo, Inc.* 4,092 532,983 ------------- 4,913,633 Telecommunications - 9.33% Exodus Communications, Inc.* 1,825 161,397 Level 3 Communications, Inc.* 10,025 892,225 Nextel Communications, Inc.* 6,500 711,344 Nokia Corporation 32,791 1,864,988 Sprint Corporation* 7,575 416,625 Teligent, Inc.* 2,725 102,188 Vodaphone Airtouch PLC 12,120 569,640 VoiceStream Wireless Corporation* 4,490 444,510 Williams Communications Group* 4,225 156,324 Winstar Communications, Inc.* 4,237 168,950 ------------- 5,488,192 TOTAL COMMON STOCKS (Cost $44,780,779) $53,400,425 ------------- Principal Value --------- ----- SHORT TERM INVESTMENTS - 0.00% SSGA Money Market Fund $1,000 $1,000 ------------- REPURCHASE AGREEMENT - 9.21% Repurchase Agreement with State Street Bank & Trust Co. dated 04/28/00 at 4.75%, to be repurchased at $5,419,109 on 05/01/00, collateralized by $5,680,000 U.S. Treasury Notes, 5.625% due 05/15/08 (valued at $5,673,212 including interest) (Cost $5,417,000) 5,417,000 $5,417,000 ------------- TOTAL INVESTMENTS (Large Cap Growth Fund) (Cost $50,198,779) $58,818,425 ------------- - ----------------------------------------------------------------------------- Tax-Sensitive Equity Fund - ----------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 100.00% Aerospace & Defense - 3.86% General Motors Corporation 2,100 $202,256 ------------- Apparel & Textiles - 3.12% Jones Apparel Group, Inc. 5,500 163,281 ------------- Banking - 3.48% Chase Manhattan Corp. 1,300 93,681 Fleet Boston Financial Corp. 2,500 88,594 ------------- 182,275
The accompanying notes are an integral part of the financial statements. 54 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Business Services - 2.37% Shared Medi Cal System 3,000 $124,313 ------------ Computers & Business Equipment - 16.20% Hewlett Packard Co. 1,800 243,000 Sun Microsystems , Inc. 2,600 239,038 SCI Systems, Inc. 5,800 308,850 Unisys Corporation 2,500 57,969 ------------ 848,857 Consumer Durables - 1.84% Leggett & Platt, Inc. 4,500 96,188 ------------ Drugs & Health Care - 13.92% Abbott Laboratories 3,000 115,312 Amgen, Inc. 3,500 196,000 Bristol Myers Squibb Co. 1,000 52,437 Merck & Company, Inc. 1,300 90,350 Schering Plough Corp. 2,700 108,844 Watson Pharmaceuticals, Inc. 3,700 166,269 ------------ 729,212 Electrical Equipment - 4.38% Tyco International, Ltd. 5,000 229,688 ------------ Financial Services - 6.73% Citigroup, Inc. 2,150 127,791 Federal National Mortgage Assn. 2,200 132,687 Morgan Stanley Dean Witter 1,200 92,100 ------------ 352,578 Food & Drug Distribution - 3.48% CVS Corporation 4,200 182,700 ------------ Industrial Conglomerates - 6.72% Ingersoll Rand Co. 2,200 103,262 United Technologies Corp. 4,000 248,750 ------------ 352,012 Infrastructure Software - 6.96% BMC Software, Inc. 3,500 163,844 Computer Associates International, Inc. 3,600 200,925 ------------ 364,769 Insurance - 2.47% Ambac Financial Group, Inc. 2,700 129,600 ------------ International Oil - 7.26% BP Amoco Plc 3,500 178,500 Exxon Mobil Corp. 2,600 201,987 ------------ 380,487 Peripherals - 4.72% American Power Conversion Corp. 7,000 247,187 ------------ Real Estate - 2.08% Boston Properties, Inc. 1,700 59,287 Liberty Property 2,000 49,500 ------------ 108,787 Retail Trade - 0.89% Target Corporation 700 46,594 ------------
Shares Value ------ ----- Semiconductors - 5.56% Intel corp. 2,300 $291,669 ----------- Telephone - 3.96% Bell Atlantic 3,500 207,375 ----------- TOTAL INVESTMENTS (Tax-Sensitive Equity Fund) (Cost $3,923,025) $5,239,828 ----------- - ------------------------------------------------------------------------ Growth and Income Fund - ------------------------------------------------------------------------ Shares Value ------ ----- COMMON STOCKS - 99.30% Aerospace & Defense - 2.02% General Motors Corp. 18,800 $1,810,675 Honeywell International, Inc. 37,100 2,077,600 United Technologies Corp. 32,200 2,002,438 ----------- 5,890,713 Air Travel - 0.53% AMR Corporation 44,800 1,526,000 ----------- Banks - 5.02% The Chase Manhattan Corp. 26,600 1,916,862 Citigroup, Inc. 120,600 7,168,163 U.S. Bancorp 131,500 2,671,094 Wachovia Corp. 46,000 2,883,625 ----------- 14,639,744 Beverages - 2.04% Anheuser-Busch Companies, Inc. 39,900 2,815,444 Pepsico, Inc. 85,400 3,133,112 ----------- 5,948,556 Business Services - 2.53% Automatic Data Processing, Inc. 62,500 3,363,281 First Data Corp. 64,300 3,130,606 Sabre Holdings Corp. 25,174 879,517 ----------- 7,373,404 Chemicals - 1.35% The Dow Chemical Co. 11,900 1,344,700 E.I. Du Pont de Nemours & Co. 54,500 2,585,344 ----------- 3,930,044 Computers & Business Equipment - 8.01% Cisco Systems, Inc. 173,000 11,993,766 International Business Machines Corp. 53,800 6,005,425 Lucent Technologies 86,000 5,348,125 ----------- 23,347,316 Computers & Peripherals - 3.16% Dell Computer Corp. 10,600 531,325 EMC Corp. 24,500 3,403,969 Hewlett-Packard Company 28,800 3,888,000 Network Solutions, Inc. 9,400 1,391,200 ----------- 9,214,494 Drugs & Health Care - 12.02% Abbott Laboratories 83,300 3,201,844 American Home Products Corp. 98,600 5,540,087
The accompanying notes are an integral part of the financial statements. 55 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Drugs & Health Care - cont'd. Baxter International, Inc. 44,200 $2,878,525 Bristol-Myers Squibb Co. 45,100 2,364,931 Cardinal Health, Inc. 38,400 2,114,400 Columbia/HCA Healthcare Corp. 42,600 1,211,438 Johnson & Johnson 34,600 2,854,500 Merck & Company, Inc. 54,600 3,794,700 Pfizer, Inc. 43,400 1,828,225 Pharmacia Corp. 96,437 4,815,823 Warner-Lambert Co. 38,800 4,415,925 ------------ 35,020,398 Electronic Components - 9.48% Analog Devices, Inc. 56,800 4,362,950 Intel Corp. 80,000 10,145,000 Micron Technology, Inc. 30,000 4,177,500 Motorola, Inc. 32,600 3,881,437 Texas Instruments, Inc. 31,000 5,049,125 ------------ 27,616,012 Electronic Equipment - 5.64% General Electric Co. 75,400 11,856,650 Solectron Corp. 29,800 1,395,013 Tyco International Ltd. 69,300 3,183,469 ------------ 16,435,132 Financial Services - 3.45% Associates First Capital Corp. 128,200 2,844,438 Federal National Mortgage Association 54,200 3,268,937 Merrill Lynch & Co., Inc. 38,600 3,934,787 ------------ 10,048,162 Forest Products - 1.32% International Paper Co. 61,200 2,249,100 Minnesota Mining & Manufacturing Co. 18,400 1,591,600 ------------ 3,840,700 Hotels & Restaurants - 1.03% McDonald's Corp. 78,500 2,992,812 ------------ Household Products - 3.93% Colgate Palmolive Co. 23,500 1,342,438 Corning, Inc. 16,400 3,239,000 Gillette Company 31,600 1,169,200 Kimberly Clark Corp. 49,800 2,891,512 Procter & Gamble Co. 47,200 2,814,300 ------------ 11,456,450 Industrial Components - 0.99% Caterpillar, Inc. 32,300 1,273,831 Illinois Tool Works, Inc. 25,100 1,607,969 ------------ 2,881,800 Insurance - 3.49% American International Group, Inc. 42,625 4,675,430 Marsh & McLennan Companies, Inc. 55,800 5,499,787 ------------ 10,175,217
Shares Value ------ ----- Internet Services - 1.20% America Online, Inc. 50,300 $3,008,569 e-Bay, Inc. 3,100 493,481 ------------ 3,502,050 I T Consulting Services - 1.26% Computer Sciences Corp. 37,900 3,091,219 Electronic Data Systems Corp. 8,500 584,375 ------------ 3,675,594 Media - 4.02% AT & T Corp. 53,000 2,646,688 CBS Corp. 22,700 1,333,625 The Walt Disney Co. 63,400 2,746,012 Gannett, Inc. 54,900 3,506,737 Time Warner, Inc. 16,400 1,474,975 ------------ 129,800 11,708,037 Motor Vehicles - 0.57% Ford Motor Company 30,300 1,657,031 ------------ Non-Ferrous Metals - 0.93% Aluminum Company of America 41,700 2,705,287 ------------ Petroleum - 5.70% Chevron Corp. 36,900 3,141,113 ExxonMobil Corp. 96,000 7,458,000 Royal Dutch Petroleum Co. 83,600 4,796,550 UNOCAL Corp. 37,900 1,224,644 ------------ 16,620,307 Petroleum Services - 1.59% Schlumberger, Ltd. 60,500 4,632,031 ------------ Retail Trade - 4.62% Staples, Inc. 55,000 1,048,438 Target Corp. 78,200 5,205,188 Wal-Mart Stores, Inc. 130,100 7,204,287 ------------ 13,457,913 Software - 4.42% Microsoft Corp. 140,300 9,785,925 Oracle Corp. 38,800 3,101,575 ------------ 12,887,500 Telecommunications - 7.74% AT & T Corp. 92,400 4,313,925 Bell Atlantic Corp. 85,892 5,089,101 MCI WorldCom, Inc. 110,850 5,036,747 SBC Communications, Inc. 113,400 4,968,337 Sprint Corp. 57,000 3,135,000 ------------ 22,543,110 Utilities-Electric - 1.24% Duke Energy Do. 53,200 3,059,000 Unicom Corp. 14,200 564,450 ------------ 3,623,450 TOTAL COMMON STOCKS (Cost $175,742,003) $289,349,264 ------------ PREFERRED STOCK - 0.43% Chemicals - 0.35% Monsanto Corp.(Cost $1,116,000) 27,900 $ 1,262,475 ------------
The accompanying notes are an integral part of the financial statements. 56 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Principal Value --------- ----- REPURCHASE AGREEMENT - 0.27% Repurchase Agreement with State Paine Webber dated 04/28/00 at 5.71%, to be repurchased at $796,373 on 05/01/00, collateralized by $830,000 U.S. Treasury Notes, 5.50% due 02/28/03 (valued at $814,370, including interest) (Cost $796,000) $796,000 $796,000 ------------ TOTAL INVESTMENTS (Growth & Income Fund) (Cost $177,654,003) $291,407,739 ------------ - --------------------------------------------------------------------------- Equity-Income Fund - --------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 100.00% Banking - 2.73% First Union Corp. 23,400 $745,875 Wells Fargo & Co. 27,150 1,114,847 ------------ 1,860,722 Business Services - 2.11% Pitney Bowes, Inc. 35,300 1,442,888 ------------ Chemicals - 1.87% E.I. Du Pont De Nemours & Co. 26,900 1,276,069 ------------ Computer Software - 2.23% Microsoft Corp. 21,800 1,520,550 ------------ Computers & Business Equipment - 2.01% International Business Machines 12,300 1,372,988 ------------ Diversified Financial - 4.89% Citigroup, Inc. 35,700 2,121,919 Merrill Lynch & Co., Inc. 11,900 1,213,056 ------------ 3,334,975 Drugs & Health Care - 22.51% American Home Products Corp. 73,700 4,141,019 Baxter International, Inc. 38,800 2,526,850 Bristol Myers Squibb Co. 46,900 2,459,319 Johnson & Johnson 14,900 1,229,250 Pharmacia Corp. 100,138 5,000,641 ------------ 15,357,079 Electric Utilities - 1.64% Duke Energy Co. 19,500 1,121,250 ------------ Food & Beverages - 1.49% General Mills, Inc. 28,000 1,018,500 ------------ Household Products - 8.37% Gillette Co. 48,300 1,787,100 Kimberly-Clark Corp. 67,650 3,927,928 ------------ 5,715,028 Insurance - 6.11% Marsh & McLennan Cos., Inc. 42,300 4,169,194 ------------
Shares Value ------ ----- International Oil - 8.33% Chevron Corp. 29,100 $2,477,137 Exxon Mobil Corp. 21,000 1,631,437 Texaco, Inc. 31,800 1,574,100 ------------ 5,682,674 Multi Industry - 7.77% General Electric 13,400 2,107,150 Minnesota Mining & Manufacturing Co. 36,900 3,191,850 ------------ 5,299,000 Multiline Retail - 1.87% Walmart Stores, Inc. 23,000 1,273,625 ------------ Paper - 4.30% International Paper Co. 79,807 2,932,907 ------------ Specialty Retail - 3.36% The Limited, Inc. 50,700 2,291,006 ------------ Telephone - 18.41% American Telephone & Telegraph Corp. 16,200 756,337 Bell Atlantic Corp. 85,400 5,059,950 SBC Communications, Inc. 81,754 3,581,847 U.S. West, Inc. 44,500 3,167,844 ------------ 12,565,978 TOTAL INVESTMENTS (Equity-Income Fund) (Cost $66,304,456) $68,234,433 ------------ - --------------------------------------------------------- Balanced Fund - --------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 65.98% Aerospace & Defense - 2.31% Boeing Company 16,000 $635,000 Honeywell International, Inc. 11,800 660,800 ------------ 1,295,800 Banks - 5.78% Bank America Corp. 11,200 548,800 Bank of New York, Inc. 17,300 710,381 Chase Manhattan Corp. 8,400 605,325 Morgan, J.P. & Co., Inc. 5,700 731,738 Wells Fargo & Company 15,800 648,788 ------------ 3,245,032 Beverages - 0.93% Anheuser Busch Companies, Inc. 7,400 522,162 ------------ Communications Equipment - 4.37% Cisco Systems, Inc. 10,100 700,214 Crown Castle International Corp. 12,100 464,337 General Motors Corp. 7,600 731,975 Motorola, Inc. 4,700 559,594 ------------ 2,456,120 Computers & Peripherals - 1.26% EMC Corp. 5,100 708,581 ------------
The accompanying notes are an integral part of the financial statements. 57 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Shares Value ------ ----- Containers & Packaging - 0.74% Temple Inland, Inc. 8,300 $416,037 ------------ Diversified Financial - 2.59% Citigroup, Inc. 12,900 766,744 Morgan Stanley Dean Witter 9,000 690,750 ------------ 1,457,494 Diversified Telecommunication - 4.67% Bellsouth Corp. 14,100 686,494 Cable & Wireless Pub. Ltd. Co. 12,600 622,125 Qwest Communications Int'l., Inc. 6,100 264,587 SBC Communications., Inc. 15,800 692,238 U.S. West, Inc. 5,000 355,937 ------------ 2,621,381 Electric Utilities - 0.74% Unicom Corp. 10,400 413,400 ------------ Electrical Equipment - 1.11% Nortel Networks Corp. 5,500 622,875 ------------ Energy Equipment & Services - 1.05% Schlumberger, Ltd. 7,700 589,531 ------------ Hotels, Restaurants & Leisure - 1.22% Harrah's Entertainment, Inc. 33,300 684,731 ------------ Household Durables - 1.05% Gemstar International Group, Ltd. 12,800 592,000 ------------ Household Products - 1.02% Colgate Palmolive Co. 10,000 571,250 ------------ Industrial Conglomerates - 2.35% General Electric Co 4,000 629,000 Textron, Inc. 11,200 693,700 ------------ 1,322,700 Insurance - 1.18% Allmerica Financial Corp. 12,200 660,325 ------------ Internet Software & Services - 1.10% America Online, Inc. 10,300 616,069 ------------ Media - 5.05% American Telephone & Telegraph Corp. 12,100 604,244 Clear Channel Communications 10,700 770,400 Echostar Communications Corp. 11,500 732,405 Omnicom Group 8,000 728,500 ------------ 2,835,549 Multiline Retail - 2.03% Target Corp. 9,600 639,000 Wal-Mart Stores, Inc. 9,000 498,375 ------------ 1,137,375 Oil & Gas - 4.14% Apache Corp. 13,900 673,281 Coastal Corp. 6,500 326,219 ExxonMobil Corp. 9,300 722,494 Unocal Corp. 18,700 604,244 ------------ 2,326,238 Personal Products - 1.07% Gillette Company 16,300 603,100 ------------
Shares Value ------ ----- Pharmaceuticals - 8.10% American Home Products 11,300 $634,919 Forest Labs, Inc. 8,000 672,500 Genentech, Inc. 4,800 561,600 Johnson & Johnson 7,200 594,000 Merck & Co., Inc. 11,300 785,350 Pharmacia Corp. 12,400 619,225 Warner Lambert Co. 6000 682,875 ------------ 4,550,469 Road & Rail - 1.10% Kansas City Southern Industries, Inc. 8,600 618,125 ------------ Semiconductor Equipment & Products - 5.25% Intel Corp. 5,700 722,831 KLA Tencor Corp. 9,700 726,288 Maxim Integrated Products, Inc. 12,100 784,231 Texas Instruments, Inc. 4,400 716,650 ------------ 2,950,000 Software - 2.97% Computer Associates Int'l., Inc. 12,000 669,750 12 Technologies, Inc. 3,500 452,375 SAP Aktiengesellschaft 11,100 545,288 ------------ 1,667,413 Specialty Retail - 2.80% Circuit Cities Stores, Inc. 12,600 741,038 Tandy Corp. 14,600 832,200 ------------ 1,573,238 TOTAL COMMON STOCKS (Cost $35,763,920) $37,056,995 ------------ Principal Value --------- ----- CORPORATE BONDS - 14.45% Electric & Gas Utilities - 7.82% Commonwealth Edison Co., 8.375% due 09/15/22 $1,000,000 $975,086 Consumers Energy Co., 7.375% due 09/15/23 500,000 436,296 Indiana & Michigan Power Co., 8.50% due 12/15/22 1,000,000 995,380 Pennsylvania Power Co., 8.50% due 07/15/22 1,000,000 965,150 Texas Electric Utilities Co., 8.50% due 08/01/24 1,000,000 1,016,890 ------------ 4,388,802 Consumer Services - 1.65% Hertz Corporation, 6.50% due 05/15/06 1,000,000 927,820 ------------ Multiline Retail - 1.79% Target Corp., 7.50% due 02/15/05 1,000,000 1,004,380 ------------
The accompanying notes are an integral part of the financial statements. 58 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Principal Value --------- ----- Telecommunications - 3.19% Metronet Communications Corp., Zero Coupon due 06/15/08 $1,000,000 $797,980 Worldcom, Inc. 7.75% due 04/01/07 1,000,000 995,630 ------------ 1,793,610 TOTAL CORPORATE BONDS (Cost $8,348,110) $8,114,612 ------------ U.S. TREASURY OBLIGATIONS - 4.51% U.S. Treasury Notes - 4.51% 5.875% due 02/15/04 $500,000 $488,280 7.25% due 05/15/04 2,000,000 2,044,680 ------------ 2,532,960 TOTAL U.S. TREASURY OBLIGATIONS (Cost $2,604,627) $2,532,960 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 9.81% Federal Home Loan Mortgage Corporation - 6.13% 6.45% due 04/29/09 $1,600,000 $1,476,256 6.645% due 03/10/04 1,000,000 978,692 6.875% due 01/15/05 1,000,000 985,620 ------------ 3,440,568 Federal National Mortgage Association - 1.77% 7.255% due 01/15/10 1,000,000 997,030 ------------ Resolution Funding FBE Strips - 1.91% Zero Coupon due 04/15/09 2,000,000 1,073,440 ------------ TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $5,699,227) $5,511,038 ------------ SHORT TERM INVESTMENTS - 0.00% SSGA Money Market Fund $1,000 $1,000 ------------ REPURCHASE AGREEMENT - 5.25% Repurchase Agreement with State Street Bank & Trust Co. dated 04/28/00 at 4.75%, to be repurchased at $2,952,149 on 05/01/00, collateralized by $3,095,000 U.S. Treasury Notes, 5.625% due 05/15/08 (valued at $3,091,308, including interest) (Cost $2,951,000) $2,951,000 $2,951,000 ------------ TOTAL INVESTMENTS (Balanced Fund) (Cost $55,367,884) $56,167,605 ------------ - ----------------------------------------------------------------------- Strategic Income Fund - ----------------------------------------------------------------------- Principal Value --------- ----- CORPORATE BONDS - 33.93% Business Services - 2.61% CSC Holdings, Inc., 10.50% due 05/15/16 $500,000 $541,250 Iron Mountain, Inc., 10.125% due 10/01/06 500,000 482,500 ------------ 1,023,750
Principal Value --------- ----- Chemical Products - 1.00% Lyondell Chemical Co., 9.875% due 05/01/07 $400,000 $393,000 ------------ Crude Petroleum & Natural Gas - 2.25% Bellwether Exploration Co., 10.875% due 04/01/07 250,000 225,000 Pennzoil Company, 10.25% due 11/01/05 500,000 510,350 United Refining Co., 10.75% due 06/15/07 250,000 150,000 ------------ 885,350 Electronics - 0.01% Breed Technologies, Inc.,/2/ 9.25% due 04/15/08 500,000 4,375 ------------ Energy & Utilities - 0.31% Costilla Energy, Inc.,/2/ 10.25% due 10/01/06 500,000 120,000 ------------ Financial Services - 1.82% Ford Motor Credit Company, 7.375% due 10/28/09 148,000 143,060 Merrill Lynch & Co., Inc., 6.00% due 11/15/04 140,000 131,947 Merrill Lynch & Co., Inc., 5.97% due 09/11/00 370,000 249,884 Paine Webber Group, Inc., 7.625% due 12/01/09 200,000 189,528 ------------ 714,419 Food & Beverages - 0.56% Agrilink Foods, Inc. 11.875% due 11/01/08 250,000 221,250 ------------ Hotels & Restaurants - 0.61% Prime Hospitality Corp., 9.75% due 04/01/07 250,000 238,125 ------------ Industrials - 4.11% American Standard, Inc., 7.375% due 02/01/08 400,000 366,000 Foamex, L.P., 9.875% due 05/15/07 375,000 307,500 P&L Coal Holdings Corp., 8.875% due 05/15/08 250,000 225,000 Polymer Group, Inc., 8.75% due 03/01/08 150,000 134,625 9.00% due 07/01/07 190,000 171,000 Raytheon Company, 6.15% due 11/01/08 175,000 151,209 Stellex Industries, Inc., 9.50% due 11/01/07 250,000 137,500 Tembec Industries, Inc., 8.625% due 06/30/09 125,000 121,250 ------------ 1,614,084
The accompanying notes are an integral part of the financial statements. 59 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Principal Value --------- ----- Leisure Time - 1.79% Hollywood Casino, Shreveport, 13.0% due 08/01/06 $250,000 $263,750 Isle of Capri Casinos, Inc., 8.75% due 04/15/09 250,000 226,250 Mohegan Tribal Gaming Authority, 8.75% due 01/01/09 225,000 213,750 ------------ 703,750 Other - 6.31% Aztar Corp., 8.875% due 05/15/07 250,000 233,125 Cendant Corp., 7.75% due 12/01/03 100,000 97,454 Crown Castle International Corp., Zero Coupon due 05/15/11 300,000 177,000 Countrywide Funding Corp., 6.25% due 04/15/09 148,000 128,830 Grey Wolf, Inc., 8.875% due 07/01/07 250,000 230,000 Kroger Company, 8.05% due 02/01/10 73,000 71,638 Pennhall International Inc., 12.0% due 08/01/06 250,000 245,000 Spectrasite Holdings, Inc., 12.875% due 03/15/10 500,000 257,500 Sprint Cap Corp., 5.70% due 11/15/03 148,000 139,040 True Temper Sports, Inc., 10.875% due 12/01/08 250,000 237,500 United International Holdings, Inc., 10.75% due 02/15/08 1,000,000 660,000 ------------ 2,477,087 Pollution Control - 0.96% Allied Waste Industries, Inc., 7.875% due 01/01/09 500,000 375,000 ------------ Publishing - 0.61% Hollinger International, Inc., 9.25% due 03/15/07 250,000 241,250 ------------ Real Estate - 1.66% HMH Properties, Inc., 7.875% due 08/01/08 500,000 432,500 Radnor Holdings Corp., 10.00% due 12/01/03 250,000 220,000 ------------ 652,500 Steel - 0.58% AK Steel Corp., 7.875% due 02/15/09 250,000 227,500 ------------ Telecommunication Services - 7.89% Adelphia Communications Corp., 9.50% due 02/15/04 46,998 46,058 9.875% due 03/01/07 175,000 169,312 Century Communications Corp., 8.875% due 01/15/07 175,000 160,125 Zero Coupon due 01/15/08 250,000 103,750
Principal Value --------- ----- Telecommunication Services - cont'd. Covad Communications Group, 12.0% due 02/15/10 $250,000 $233,750 GTE Corp., 6.94% due 04/15/28 18,000 15,772 Intermedia Communications, Inc., 8.50% due 01/15/08 250,000 227,500 International Cabletel, Inc., 11.50% due 02/01/06 1,000,000 925,000 Nextel Communications, 9.95% due 02/15/08 750,000 525,000 PSI Net, Inc., 11.0% due 08/01/09 250,000 220,000 Telewest Communication Plc, Step up to 11.00% due 10/01/07 500,000 471,250 ------------ 3,097,517 Transportation - 0.85% TFM SA de CV, Step up to 11.75% due 06/15/09 500,000 335,000 ------------ TOTAL CORPORATE BONDS (Cost $15,115,841) 13,323,957 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.32% Federal Home Loan Banks - 1.14% 5.89% due 07/24/00 450,000 449,298 Federal Home Loan Mortgage Corporation - 1.41% 8.50% due 05/01/08 265,572 268,643 10.00% due 05/15/20 237,055 246,537 11.565% due 06/15/21 138,833 40,733 ------------ 555,913 Government National Mortgage Association - 1.68% 7.50% due 07/15/27 268,789 264,505 7.50% due 10/15/27 329,472 324,220 7.50% due 10/15/27 70,212 69,092 ------------ 657,817 Federal National Mortgage Association - 2.61% 7.50% TBA 1,000,000 978,430 13.00% due 11/15/15 40,110 45,299 ------------ 1,023,729 Federal National Mortgage Association -- Interest Only - 2.81% Interest Only due 03/17/20, REMIC 6,094,647 132,168 Interest Only due 02/25/35, REMIC 5,807,788 345,353 Interest Only due 10/17/36, REMIC 12,603,650 284,937 Interest Only due 06/25/38, REMIC 6,178,406 340,558 ------------ 1,103,016
The accompanying notes are an integral part of the financial statements. 60 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Principal Value --------- ----- Federal National Mortgage Association - CMO - 1.52% 7.393% due 08/17/03, REMIC $219,489 $219,414 8.80% due 01/25/19, REMIC 315,608 320,242 10.40% due 04/25/19, REMIC 56,168 58,783 ------------ 598,439 Student Loan Marketing Association - 1.15% 7.20% due 11/09/00 450,000 451,337 ------------ TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $5,174,446) 4,839,549 ------------ FIXED INCOME - OTHER - 21.66% Collateralized Mortgage Obligations - 8.14% Green Tree Financial Corp., 7.07% due 09/15/07 2,043,991 1,936,027 Mid State Trust VI, Class A, 7.34% due 07/01/35 1,314,395 1,262,226 ------------ 3,198,253 Commercial Mortgage Backed Securities - 4.81% Commercial Mortgage Asset Trust, 7.35% due 08/17/13 1,200,000 1,135,200 DLJ Commercial Mortgage Corp., Interest Only Strips: due 05/10/23 9,591,865 383,579 due 11/12/31 7,569,593 367,428 ------------ 1,886,207 Residential Subordinate Securities - 8.71% ContiMortgage Home EquityLoan, 7.00% due 12/29/25, 144A 500,000 443,585 First Union Residential Securities, 7.00% due 08/25/28 242,714 213,843 GE Capital Management Services, Inc. 6.75% due 11/25/28 984,084 879,949 PNC Mortgage Securities Corp., 6.734% due 07/25/28 414,402 357,351 6.75% due 05/25/28 343,315 295,192 6.772% due 03/25/29 494,350 442,122 6.838% due 05/25/28 465,842 405,691 6.905% due 04/25/29 442,892 385,307 ------------ 3,423,040 TOTAL FIXED INCOME - OTHER 8,507,500 ------------ (Cost $9,112,036) FOREIGN GOVERNMENT OBLIGATIONS - 23.95% Algeria - 1.15% 6.375% due 03/04/10 600,000 450,000 ------------ Republic of Argentina - 0.97% 11.375% due 01/30/17 400,000 381,600 ------------ Federal Republic of Brazil - 5.48% 7.00% due 04/15/12 600,000 431,280 8.00% due 04/15/14 1,185,848 854,522 9.375% due 04/07/08 150,000 125,535 14.5% due 10/15/09 700,000 739,410 ------------ 2,150,747
Principal Value --------- ----- National Republic of Bulgaria - 0.71% 2.75% due 07/28/12 $400,000 $278,000 ------------ Canadian Government Treasury Bills - 0.17% 5.82% due 06/08/00 101,000 67,816 ------------ Republic of Ecuador - 0.64% 4.00% FRB due 02/28/25 700,000 249,410 ------------ Federal Republic of Germany - 0.96% 4.000% due 07/04/09 110,000 90,601 4.250% due 11/26/04 200,000 176,365 5.625% due 01/04/28 120,000 107,979 ------------ 374,945 Republic of Italy - 0.23% 5.25% due 11/01/29 110,000 91,601 ------------ Government of Mexico - 3.38% 6.25% due 12/31/19 1,400,000 1,168,300 10.375% due 02/17/09 150,000 158,138 ------------ 1,326,438 Government of Morocco - 0.82% 6.843% due 01/01/09 364,286 325,125 ------------ Kingdom of Norway - 1.11% 5.75% due 11/30/04 4,000,000 434,894 ------------ Government of Peru - 2.17% 3.75% FRB due 03/07/17 1,400,000 854,000 ------------ Republic of South Africa - 2.09% 12.0% due 02/28/05 3,000,000 413,384 13.00% due 08/31/10 3,000,000 407,755 ------------ 821,139 Kingdom of Spain - 0.19% 6.15% due 01/31/13 80,000 75,983 ------------ Kingdom of Sweden - 0.26% 10.25% due 05/05/03 800,000 101,432 ------------ Republic of Venezuela - 3.62% 7.437% due 03/31/07 833,829 646,913 13.625% due 08/15/18 850,000 776,092 ------------ 1,423,005 TOTAL FOREIGN GOVERNMENT OBLIGATIONS 9,406,135 ------------ (Cost $9,384,239) Shares Value ------ ----- PREFERRED STOCK - 0.60% TCR Holdings-Class B 570 6 TCR Holdings-Class C 314 3 TCR Holdings-Class D 827 8 TCR Holdings-Class E 1,711 17 ------------ 34 ------------ Drugs & Health Care - 0.60% Fresenius Medical Care Capital Trust, 9.00% due 12/01/06 255,625 235,000 ------------ TOTAL PREFERRED STOCK 235,034 ------------ (Cost $255,828)
The accompanying notes are an integral part of the financial statements. 61 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Principal Value --------- ----- RIGHTS & WARRANTS - 0.07% Crude Petroleum & Natural Gas - 0.07% Terex Corporation, Zero Coupon due 05/15/02 $2,000 $28,250 Other - 0.00% BCP Holdings Corp. exp. 04/15/04 500 0 Telephone - 0.00% Wireless One, Inc. , Zero Coupon due 10/19/00 750 8 In-flight Phone Corp., Zero Coupon due 05/15/02 1,000 0 ------------ TOTAL RIGHTS & WARRANTS (Cost $0) 28,258 ------------ REPURCHASE AGREEMENT - 7.47% Repurchase Agreement with State Street Bank & Trust Co. dated 04/28/00 at 5.62%, to be repurchased at $2,936,352 on 05/01/00, collateralized by $2,175,000 U.S. Treasury Bonds, 9.875% due 11/15/15 (valued at $3,124,617, including interest) (Cost $2,935,000) 2,935,000 2,935,000 ------------ TOTAL INVESTMENTS (Strategic Income Fund) (Cost $41,977,390) $39,275,433 ------------ - ------------------------------------------------------------------------------- Core Bond Fund - ------------------------------------------------------------------------------- Principal Value --------- ----- CORPORATE BONDS - 52.46% Automobiles - 1.92% Daimler Chrysler, 7.125% due 04/10/03 $190,000 $187,783 ------------ Banking - 12.86% BankAmerica Corp., 9.50% due 04/01/01 114,000 116,294 First Financial Caribbean Corp., 7.84% due 10/10/06 135,000 128,328 First Union National Bank, 7.875% due 02/15/10 95,000 93,978 NBD Bancorp, 8.25% due 11/01/24 300,000 310,965 Republic New York Corp., 9.75% due 12/01/00 155,000 157,099 Royal Bank of Scotland Group Plc, 6.40% due 04/01/09 150,000 134,802 U.S. Bancorp, 7.50% due 06/01/26 300,000 293,829 Western Financial Savings, 8.875% due 08/01/07 25,000 21,750 ------------ 1,257,045 Business Services - 0.04% AMSC Acquisition, Inc., 12.25% due 04/01/08 5,000 3,750 ------------
Principal Value --------- ----- Chemical Products - 0.94% Arco Chemical Co., 9.80% due 02/01/20 $5,000 $4,550 ICI North America, Inc., 8.875% due 11/15/06 65,000 67,438 Lyondell Chemical Company, 9.875% due 05/01/07 20,000 19,650 ---------- 91,638 Crude Petroleum & Natural Gas - 2.63% Energy Corporation of America, 9.50% due 05/15/07 20,000 13,400 Enron Corp., 6.75% due 09/01/04 100,000 95,796 Texas Petrochemicals Corp., 11.125% due 07/01/06 10,000 8,200 Williams Companies, Inc., 7.625% due 07/15/19 150,000 139,994 ---------- 257,390 Drugs & Health Care - 3.29% Alaris Medical, Inc., Step-up due 08/01/08 15,000 4,050 Allegiance Corp., 7.00% due 10/15/26 325,000 305,477 Mediq/PRN Life Support Services, 11.0% due 06/01/08 10,000 1,000 Triad Hospitals Holdings, Inc., 11.0% due 05/15/09, 144A 5,000 5,200 Universal Hospital Services, Inc., 10.25% due 03/01/08 15,000 5,700 ---------- 321,427 Financial Services - 16.79% AAG Holding, Inc., 6.875% due 06/01/08 100,000 90,781 Amerus Capital I, 8.85% due 02/01/27 100,000 87,089 Amvescap Plc, 6.60% due 05/15/05 150,000 139,401 Associates Corp. of North America, 5.75% due 11/01/23 120,000 113,126 BanPonce Financial Corp., 6.75% due 08/09/01 250,000 248,060 Beneficial Corp., 8.40% due 05/15/08 75,000 76,390 Credit National, 7.00% due 11/14/05 150,000 143,392 EOP Operating LP, 6.50% due 01/15/04 95,000 89,305 Ford Motor Credit Corp., 6.70% due 07/16/04 115,000 110,598 General Electric Capital Corp., 7.25% due 05/03/04 35,000 34,827 Heller Financial, Inc., 7.375% due 11/01/09, 144A 115,000 108,281
The accompanying notes are an integral part of the financial statements. 62 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Principal Value --------- ----- Financial Services - cont'd. KFW International Finance, Inc., 7.125% due 02/15/05 $200,000 $198,590 Sun Canada Financial Co., 7.25% due 12/15/15, 144A 200,000 196,018 Tembec Finance Corp., 9.875% due 10/31/05 5,000 5,050 ------------ 1,640,908 Food & Beverages - 0.77% Chiquita Brands International, Inc., 10.0%, due 06/15/09 5,000 3,975 Del Monte Foods Co., Step-up, due 12/15/07 16,000 11,680 Joseph E. Seagram & Sons, Inc., 7.50% due 12/15/18 65,000 59,760 ------------ 75,415 Industrials - 4.05% Domtar, Inc., 9.50% due 08/01/16 10,000 10,327 Duane Reade, Inc., 9.25% due 02/15/08 5,000 4,675 EchoStar DBS Corp., 9.375% due 02/01/09 10,000 9,600 Frontiervision Holding, L.P., Step-up, due 09/15/07 5,000 4,413 Grove Worldwide LLC, 9.25% due 05/01/08 15,000 6,450 Iridium Operations LLC, 11.25% due 07/15/05 25,000 500 K & F Industries, Inc., 9.25% due 10/15/07 10,000 9,250 KN Energy, Inc., 6.65% due 03/01/05 100,000 93,918 LDM Technologies, Inc., 10.75% due 01/15/07 20,000 14,950 Pioneer Americas Acquisition Corp., 9.25% due 06/15/07 5,000 4,150 Psinet, Inc., 11.50% due 11/01/08 5,000 4,500 Psinet, Inc., 10.00% due 02/15/05 5,000 4,400 Raytheon Company, 6.75% due 08/15/07 40,000 36,796 Royster Clark, Inc., 10.25% due 04/01/09, 144A 10,000 8,150 SCL Aereo Santiago, 6.95% due 07/01/12, 144A 100,000 91,157 Standard Pacific Corp., 8.50% due 06/15/07 5,000 4,400 Sullivan Graphics, Inc., 12.75% due 08/01/05 20,000 20,300 YPF SA 8.00% due 02/15/04 70,000 67,697 ------------ 395,633
Principal Value --------- ----- Insurance - 3.28% Florida Windstorm Underwriting, 7.125% due 02/25/19, 144A $180,000 $ 168,811 Ohio National Life Insurance Co., 8.50% due 05/15/26, 144A 150,000 152,256 ------------ 321,067 Leisure Time - 0.25% Bell Sports, Inc., 11.00% due 08/15/08 10,000 9,825 Station Casinos, Inc., 8.875% due 12/01/08, 144A 15,000 14,400 ------------ 24,225 Retail Trade - 0.05% Mattress Discounters Corp., Units, 12.625% due 07/15/07, 144A 5,000 4,550 ------------ Steel - 0.14% AK Steel Corp., 7.875% due 02/15/09 15,000 13,650 ------------ Telecommunication Services - 3.98% Allbritton Communications Co., 8.875% due 02/01/08 10,000 8,925 American Media Operations, Inc., 10.25% due 05/01/09 5,000 4,775 Benedek Communications Corp., Step-up due 05/15/06* 5,000 4,513 BTI Telecommunications Corp., 10.50% due 09/15/07 5,000 3,937 Century Communications, Step-up, due 01/15/08 * 35,000 14,525 Charter Communications Holdings, 8.625% due 04/01/09 15,000 13,088 Concentric Network Corp., 12.75% due 12/15/07 10,000 10,700 Exodus Communications, Inc., 11.25% due 07/01/08 5,000 5,063 GST Telecommunications, Inc., 12.75% 11/15/07 20,000 12,000 Hyperion Telecommunications, Inc., 13.0% due 04/15/03* 10,000 9,300 Intermedia Communications, Inc., 8.875% due 11/01/07 10,000 9,250 Intermedia Communications, Inc., 8.60% due 06/01/08 10,000 9,125 KMC Telecom. Holdings, Inc., Step-up due 02/15/08* 50,000 24,563 Nextlink Communications, Inc., Step-up due 04/15/08 * 30,000 18,300 NTL Communications Corp., Step-up due 10/01/08* 20,000 13,100 Satelites Mexicanos SA, 10.125% due 11/01/04 10,000 7,500
The accompanying notes are an integral part of the financial statements. 63 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Principal Value --------- ----- Telecommunication Services - cont'd. Telecommunications Techniques Co., LLC, 9.75% due 05/15/08 $15,000 $13,650 Tele-Communications, Inc., 9.25% due 04/15/02 200,000 206,988 ------------ 389,302 Telephone - 0.91% Nextel Communications, Inc., Step up to 9.75% due 10/31/07 20,000 14,300 U.S. West Capital Funding, Inc., 6.25% due 07/15/05 80,000 74,875 ------------ 89,175 Transportation - 0.32% Southern Railway Company, 8.75% due 10/15/03 30,000 30,843 ------------ Utilities - 0.24% GCI, Inc., 9.75% due 08/01/07 25,000 23,500 ------------ TOTAL CORPORATE BONDS (Cost $5,454,108) 5,127,301 ------------ U.S. TREASURY OBLIGATIONS - 17.58% U.S. Treasury Bonds - 17.58% 7.50% due 11/15/16 460,000 515,273 12.00% due 08/15/13 900,000 1,202,769 ------------ TOTAL U.S. TREASURY OBLIGATIONS (Cost $1,786,837) 1,718,042 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 23.32% Federal Home Loan Mortgage Corp. - 9.24% 6.00% due 11/01/13 - 09/25/22 728,798 666,131 6.50% due 06/15/23 100,000 93,593 6.625% due 09/15/09 150,000 142,992 ------------ 902,716 Federal National Mortgage Association - 9.24% 5.50% due 08/01/28 346,002 304,482 6.18% due 07/01/08 19,621 18,037 6.27% due 11/01/07 53,825 50,020 6.295% due 06/01/08 19,620 18,173 6.30% due 01/01/08 19,531 18,170 6.305% due 02/01/08 195,355 183,649 6.34% due 01/01/08 19,295 18,009 6.39% due 01/01/06 19,106 18,019 6.43% due 01/01/08 19,529 18,303 6.625% due 09/15/09 210,000 200,321 6.981% due 06/01/07 18,706 17,986 7.04% due 03/01/07 19,438 18,823 7.28% due 10/01/06 19,393 18,997 ------------ 902,989 Government National Mortgage Association - 4.84% 7.00% due 06/15/23 - 10/15/23 490,521 473,966 ------------ TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $2,381,941) 2,279,671
Principal Value --------- ----- MUNICIPAL SECURITIES - 1.66% Other Municipal Securities - 1.66% Phoenix, AZ, Civic Improvement Corp., 6.30% due 07/01/08 $125,000 $115,580 Southern California Public Power Authority, 6.93% due 05/15/17 50,000 46,640 ------------ TOTAL FIXED INCOME - OTHER (Cost $180,855) 162,220 ------------ FIXED INCOME--OTHER - 4.45% Other Asset Backed Securities - 4.45% Aesop Funding II LLC, 6.40% due 10/20/03, 144A 100,000 97,768 Continental Airlines, 6.90% due 01/02/18 95,154 86,829 Continental Airlines pass-through, 6.648% due 09/15/17 67,342 60,167 First Union Lehman Bros., Series 1997, Class A2, 6.60% due 05/18/07 200,000 190,427 ------------ TOTAL FIXED INCOME - OTHER (Cost $464,871) 435,191 ------------ Shares Value ------ ----- COMMON STOCKS - 0.00% Telecommunication Services - 0.00% Decisionone Corp. 23 $5 SF Holdings Group, Inc., 144A 7 0 ------------ TOTAL COMMON STOCKS (Cost $10,089) 5 ------------ PREFERRED STOCKS - 0.50% Concentric Network, PIK 13.5% 5 $5,112 Fairfield Mfg. Co., Inc., PIK 11.25% 25 22,313 Primedia, Inc., 8.625% 145 12,506 SF Holdings Group, Inc.*, 13.75% 2 9,050 ------------ TOTAL PREFERRED STOCKS (Cost $61,333) 48,981 ------------ WARRANTS - 0.03% Concentric Network Corp.*, Exp. 12/15/07, 144A 5 $2,351 KMC Telecom. Holdings, Inc.*, Exp. 04/15/08, 144A 50 153 Motient Corp.*, Exp. 04/01/2008 5 375 ------------ TOTAL WARRANTS (Cost $0) $2,879 ------------ TOTAL INVESTMENTS (Core Bond Fund) (Cost $10,340,034) $9,774,290 ------------
The accompanying notes are an integral part of the financial statements. 64 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (unaudited) (showing percentage of total value of investments) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Municipal Bond Fund - -------------------------------------------------------------------------------
Principal Value --------- ----- LONG-TERM INVESTMENTS - 100.00% Alabama - 1.82% Alabama Housing Finance Authority Single Family Mortgage Revenue Collateralized Home Mortgage Program, Series B-2, 6.40%, 04/01/25 $175,000 $176,747 ------------ California - 10.37% California Housing Finance Agency Revenue, Series H, 6.15%, 08/01/16 1,000,000 1,004,380 ------------ Illinois - 12.25% Chicago, IL, General Obligation, Series B, VRON, 01/01/14 100,000 100,000 Illinois Health Facilities Authority Revenue (Hospital Association Project), 7.00%, 02/15/22 200,000 210,860 Chicago, Illinois, Water Revenue, 6.50%, 11/01/15 450,000 492,098 Chicago, Illinois, Skyway Toll Bridge, Revenue, 5.375%, 01/01/16 400,000 384,208 ------------ 1,187,166 Iowa - 1.64% Iowa Finance Authority Hospital Facility Revenue Refunding (Trinity Regional Hospital Project), 7.00%, 07/01/12 150,000 158,663 ------------ Kansas - 5.08% Kansas State Turnpike Authority Revenue, 5.375%, 09/01/10 340,000 343,604 Wyandotte County, Kansas City, Kansas, Unified Government Utility System Revenue, 5.75%, 09/01/24 150,000 147,861 ------------ 491,465 Louisiana - 4.51% Louisiana Public Facilities Authority Hospital Revenue Refunding (Touro Infirmary Project), Series B, 6.125%, 08/15/23 500,000 436,355 ------------ Maine - 0.26% Maine State Housing Authority Mortgage Purchase, Revenue Series A-4, 6.375%, 11/15/12 25,000 25,200 ------------ Missouri - 5.31% Missouri State Health & Educational Facilities Authority Revenue, 6.25%, 02/15/11 500,000 514,044 ------------
Principal Value --------- ----- Nevada - 5.61% Nevada Housing Division, Single-Family Revenue Program, B-2, 6.95%, 10/01/26 $235,000 $240,579 Nevada Housing Division, Single-Family Revenue Program, Issue C, 6.35%, 10/01/12 300,000 302,652 ------------ 543,231 New Jersey - 4.97% New Jersey Economic Development Authority Water Facilities Revenue (New Jersey American Water Company, Incorporated Project), 6.875%, 11/01/34 450,000 480,897 ------------ New York - 16.22% New York City Municipal Water Finance Authority Revenue, Series A, 5.50%, 06/15/23 250,000 234,752 New York State Local Government Assistance Corporation, Series A, 6.00%, 04/01/16 410,000 417,638 New York State Environmental Facilities Corporation Pollution Control Revenue Refunding (IBM Corporation Project), 7.125%, 07/01/12 480,000 491,429 New York State Mortgage Agency Revenue, Series 40-A, 6.35%, 04/01/21 420,000 426,779 ------------ 1,570,598 Pennsylvania - 9.94% Delaware Valley, Pennsylvania, Regional Finance Authority Series A, 5.50%, 08/01/28 500,000 476,035 Philadelphia, Pennsylvania, Water & Wastewater Revenue, 6.25%, 08/01/12 450,000 486,445 ------------ 962,480 South Carolina - 5.15% Greenville Hospital Systems Hospital Facilities Revenue, Series B, 5.70%, 05/01/12 500,000 498,965 ------------ Tennessee - 4.88% Humphreys County, Tennessee, Industrial Development Board Solid Waste Disposal Revenue (Inland Container Corp. Project), 6.70%, 05/01/24 450,000 472,689 ------------
The accompanying notes are an integral part of the financial statements. 65 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (unaudited) (showing percentage of total value of investments) - --------------------------------------------------------------------------------
Principal Value --------- ----- Texas - 6.07% Texas State Veterans Housing Assistance, 6.80%, 12/01/23 $65,000 $66,999 Port Arthur, Texas, Navigation District, Zero Coupon, 03/01/10 900,000 521,109 ------------ Wisconsin - 5.92% Wisconsin Housing & Economic Development Authority Home Ownership Revenue, Series D, 6.10%, 07/01/24 85,000 85,450 Wisconsin State Health & Educational Facilities Authority Revenue, Mercy Hospital of Janesville, Incorporated, 6.60%, 08/15/22 500,000 487,420 ------------ 572,870 TOTAL INVESTMENTS (Municipal Bond Fund) (Cost $9,762,628) $9,683,858 ------------ - --------------------------------------------------------------------------- U.S. Government Securities Fund - --------------------------------------------------------------------------- Principal Value --------- ----- U.S. TREASURY OBLIGATIONS - 3.89% U.S. Treasury Bonds - 3.89% 6.125% due 08/15/29 $1,250,000 $1,252,925 6.375% due 08/15/27 800,000 816,872 ------------ TOTAL U.S. TREASURY OBLIGATIONS (Cost $2,048,192) 2,069,797 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 89.28% Federal Home Loan Banks - 2.53% 5.80% due 09/02/08 1,500,000 1,345,785 ------------ Federal Home Loan Mortgage Corporation - 23.57% 6.00% due 09/01/10 - 7/01/29 4,230,152 3,851,719 6.625% due 09/15/09 700,000 667,296 7.00% due 10/01/12 5,378,824 5,252,745 7.00% due 04/15/21 792,392 779,761 8.00% due 06/01/08 119,861 119,561 8.25% due 07/01/06 94,787 95,099 8.50% due 05/01/08 120,431 121,105 9.50% due 08/01/20 442,711 461,527 10.0% due 03/01/16 1,096,132 1,163,215 11.75% due 08/01/13 31,132 33,860 ------------ 12,545,888 Federal National Mortgage Association - 56.94% 6.50% due 12/01/03 - 2/01/29 7,775,050 7,289,156 6.527% due 05/25/30 REMIC 2,750,000 2,568,940 6.689% due 12/28/28 REMIC 1,973,147 1,874,588
Principal Value --------- ----- Federal National Mortgage Association - cont'd. 6.783% due 01/17/03 REMIC $763,775 $761,483 7.00% TBA 1,000,000 956,560 7.00% due 05/01/24 - 2/01/29 11,438,574 10,961,082 7.50% TBA 2,000,000 1,956,860 8.00% TBA 400,000 399,372 8.00% due 08/01/04 16,034 16,086 8.25% due 03/25/06 REMIC 675,000 679,847 8.50% due 08/01/02 24,319 24,584 11.00% due 02/01/15 360 392 11.50% due 04/01/19 136,874 150,518 12.00% due 02/01/16 - 4/01/16 901,982 1,004,263 12.50% due 07/01/15 776,437 866,364 13.00% TBA 552,882 624,409 14.50% due 11/01/14 150,051 172,511 ------------ 31,334,485 30,307,015 Government National Mortgage Association - 6.24% 7.50% TBA 500,000 491,714 7.50% due 04/15/02 - 09/15/27 754,044 744,362 7.75% due 04/15/04 36,610 36,705 8.00% due 11/15/06 - 02/15/08 24,316 24,568 9.00% due 03/20/16 - 06/20/17 1,100,198 1,132,810 10.25% due 03/15/01 10,593 10,855 11.00% due 11/20/14 - 09/20/15 9,078 9,760 11.25% due 08/20/15 - 10/20/15 3,765 4,015 11.50% due 08/20/00 - 09/20/15 280,678 306,278 12.50% due 09/15/14 16,594 18,584 13.00% due 01/15/11 - 06/15/15 232,355 261,408 13.25% due 07/15/14 38,802 43,300 13.50% due 11/15/12 - 02/15/13 33,630 38,122 15.00% due 07/15/11 - 09/15/12 47,909 56,511 15.50% due 08/15/11 - 09/15/11 117,817 133,305 16.00% due 11/15/11 9,264 10,817 ------------ 3,323,114 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $49,777,767) $47,521,802 ------------ REPURCHASE AGREEMENTS - 6.83% Repurchase Agreement with State Street Bank & Trust Co. dated 04/28/00 at 4.75%, to be repurchased at $3,637,675 on 05/01/00, collateralized by $3,660,000 U.S. Treasury Notes, 6.25% due 10/31/01 (valued at $3,749,099, including interest) (Cost $3,636,000) $3,636,000 $3,636,000 ------------ TOTAL INVESTMENTS (U.S. Government Securities Fund) (Cost $55,461,959) $53,227,599 ------------
The accompanying notes are an integral part of the financial statements. 66 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 2000 (unaudited) (showing percentage of total value of investments) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Money Market Fund - --------------------------------------------------------------------
Principal Value --------- ----- COMMERCIAL PAPER - 67.91% Albertson's, Inc., 5.95% due 05/01/00 $277,000 $277,000 AON Corp., 6.08% due 05/15/00 794,000 792,123 BancOne Corp., 6.07% due 05/22/00 775,000 772,256 Baxter International, Inc., 6.10% due 05/22/00 800,000 797,154 Bell Atlantic Financial Services, 6.00% due 05/05/00 140,000 139,907 Cardinal Health, Inc., 6.02% due 05/08/00 831,000 830,027 Ciesco L.P., 6.10% due 06/19/00 260,000 257,841 Coca Cola Co., 6.05% due 06/07/00 421,000 418,382 Colgate Palmolive Co., 6.00% due 05/17/00 800,000 797,867 Cooper Industries, Inc., 6.10% due 05/01/00 604,000 604,000 Countrywide Home Loans, Inc., 6.06% due 05/25/00 266,000 264,926 CVS Corp., 6.05% due 05/03/00 800,000 799,731 Dover Corporation, 6.10% due 05/31/00 394,000 391,997 E.I. Du Pont De Nemours & Co., 6.01% due 05/04/00 800,000 799,599 Eastman Kodak Company, 6.18% due 07/14/00 379,000 374,185 GTE Corp., 6.07% due 05/10/00 800,000 798,786 Kellogg Company, 6.01% due 05/12/00 800,000 798,531 Marsh & McClennan, Inc., 6.02% due 05/03/99 840,000 839,719 Merrill Lynch & Co., Inc., 6.07% due 06/01/00 378,000 376,024 PPG Industries, Inc., 6.01% due 05/16/00 700,000 698,247 Snap On Tools Corp., 6.00% due 05/02/00 800,000 799,867 Wal Mart Stores, Inc., 5.99% due 05/19/00 840,000 837,484 ------------ TOTAL COMMERCIAL PAPER $13,465,653 ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS - 32.09% Student Loan Marketing Association - 7.56% 6.222% due 02/21/01 $1,500,000 $1,500,000
Principal Value --------- ----- Federal Home Loan Banks - 10.09% 6.182% disc note due 06/09/00 $2,000,000 $2,000,000 Federal National Mortgage Association - 14.44% 5.95% disc note due 05/30/00 2,877,000 2,863,210 ------------ TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $6,363,210 ------------ TOTAL INVESTMENTS (Money Market Fund) $19,828,863 ------------
Key to Currency Abbreviations AUD-Australian Dollar CAD-Canadian Dollar EUR-European Currency Unit GBP-British Pound GRD-Greek Drachma HKD-Hong Kong Dollar JPY-Japanese Yen NOK-Norwegian Krone PLN-Polish Zloty SEK-Swedish Krona Key to Security Abbreviations and Legend FRB Floating Rate Bond. The interest rates shown on FRBs are the current interest rates at October 31, 1999, which are subject to change based on the terms of the security. REMIC Real Estate Mortgage Investment Conduit TBA To Be Announced 1 Non-Income producing, issuer is in default of interest payments 2 Non-Income producing, issuer is in bankruptcy and is in default of interest payments /\ Collateral for forward commitments * Non-Income producing ** Purchased on a forward commitment (Note 2) The accompanying notes are an integral part of the financial statements. 67 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - ------------------------------------------------------------------------------- 1. ORGANIZATION OF THE FUND. North American Funds (the "Fund") is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. It is a series company, which means it has several portfolios, each with a stated investment objective which it pursues through separate investment policies. As of April 30, 2000, the Fund offered the following fifteen portfolios: the International Small Cap Fund ("International Small Cap"), the International Equity Fund, (formerly the International Growth & Income Fund) ("International Equity"), the Global Equity Fund ("Global Equity"), the Small Cap Growth Fund (formerly the Emerging Growth Fund) ("Small Cap Growth"), the Mid Cap Growth Fund (formerly the Small/Mid Cap Fund) ("Mid Cap Growth"), the Large Cap Growth Fund (formerly the Growth Equity Fund) ("Large Cap Growth"), the Tax- Sensitive Equity Fund ("Tax-Sensitive Equity"), the Growth & Income Fund ("Growth & Income"), the Equity-Income Fund ("Equity-Income"), the Balanced Fund ("Balanced"), the Strategic Income Fund ("Strategic Income"), the Core Bond Fund (formerly the Investment Quality Bond Fund) ("Core Bond"), the Municipal Bond Fund, (formerly the Municipal Bond Fund) ("Municipal Bond"), the U.S. Government Securities Fund ("U.S. Government Securities") and the Money Market Fund ("Money Market"). All of the portfolios are diversified management investment companies except for Small Cap Growth, which is a non- diversified management investment company. The Fund offers Class A, Class B and Class C shares. Class A shares are sold with a front-end sales charge up to 5.75%. Class B and Class C shares are sold without an initial sales charge. Class B shares are sold with a contingent deferred sales charge which declines from 5% to zero depending on the period of time shares are held. Class C shares are sold with a contingent deferred sales charge of 1% in the first year after purchase. Class B shares will automatically convert to Class A shares of the same portfolio eight years after purchase. All three classes of shares have identical voting, dividend, liquidation and other rights, except that each class has exclusive voting rights with respect to its distribution plan (See Note 5). Investment income, realized and unrealized capital gains and losses and common expenses of each portfolio are allocated on a pro-rata basis to each class based on their relative net assets. Effective March 10, 2000 CypressTree Investments, Inc. ("CypressTree") sold substantially all of its assets including all of the stock of CypressTree Asset Management Corporation, Inc. ("CAM"), the Trust's investment adviser, and all of the stock of CypressTree Funds Distributors, Inc. ("CFD"), the Trust's distributor, to American General Corporation ("American General"). The acquisition by American General of CypressTree's assets (herein "the Acquisition") took place pursuant to a Purchase Agreement dated February 25, 2000. The closing of the Acquisition on March 10, 2000 (the "Closing") constituted an assignment of the investment advisory agreement between CAM and the Trust with respect to the Funds, and of the distribution agreement between CFD and the Trust. Under the Investment Company Act of 1940, as amended (the "Investment Company Act"), these assignments operated to terminate automatically each of the investment advisory and distribution agreements. American General Asset Management Corp.("AGAM") serves as investment adviser and principal underwriter for the Fund, effective March 10, 2000, pursuant to approval by the Fund's Board of Trustees and the Fund's shareholders at a special shareholder meeting scheduled to take place in June 2000. Previously, those services were provided by CypressTree Asset Management Corporation, Inc. ("CAM"), a wholly-owned subsidiary of CypressTree Investments, Inc. ("CypressTree"). American General Fund Distributor ("AGFD") serves as distributor for the Fund. Previously, this service was provided by CypressTree Funds Distributors, Inc. ("CFD"), also a wholly-owned subsidiary of CypressTree. Effective March 10, 2000, Founders Asset Management LLC became sub-adviser to Global Equity, INVESCO Funds Group Inc. became sub-adviser to Mid Cap Growth and Balanced, Wellington Management Co. LLP became sub-adviser to both Tax- Sensitive Equity and Equity-Income, and American General Investment Management L.P. ("AGIM") became sub-adviser to Strategic Income, Core Bond, Municipal Bond, U.S. Government Securities and Money Market Funds. 2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements is in conformity with generally accepted accounting principles and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 68 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - ------------------------------------------------------------------------------- Note 2 - continued Security Valuation. Securities held by Money Market and money market instruments with remaining maturities of 60 days or less held by the other portfolios are valued at either the amortized cost basis or original cost plus accrued interest, both of which approximate current market value. All other securities held by the Fund are valued at the last sale price as of the close of business on a principal securities exchange (domestic or foreign) or, lacking any sales, at the closing bid price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading on the New York Stock Exchange, Inc. Other assets and securities for which no such quotation or valuations are readily available are valued at their fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Trustees. Foreign Currency Translations. The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis: (i) market value of securities, other assets and other liabilities at the current rate of exchange of such currencies against U.S. dollars; and (ii) purchases and sales of securities, income and expenses at the rate of exchange quoted on the respective dates of such transactions. Gains and losses that arise from changes in foreign exchange rates have been segregated from gains and losses that arise from changes in the market prices of investments. These gains and losses are included with gains and losses on foreign currency and forward foreign currency contracts in the Statements of Operations. Forward Foreign Currency Contracts. All portfolios with the exception of U.S. Government Securities, Municipal Bond and Money Market may purchase and sell forward foreign currency contracts in order to hedge a specific transaction or portfolio position. The net U.S. dollar value of foreign currency underlying all contractual commitments held at the end of the period and the resulting net unrealized appreciation (depreciation) and related net receivable or payable amount are determined daily using forward currency exchange rates supplied by a quotation service. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. Net realized gains (losses) on forward foreign currency contracts, shown in the Statements of Operations, includes net gains or losses realized by a portfolio on contracts which have matured. Options Contracts. The Fund may use option contracts to hedge against changes in the value of securities the Fund owns or expects to purchase. The Fund may also write options on securities it owns or in which it may invest in an attempt to increase its current returns. The potential risk to the Fund is that the change in value of options contracts may not correspond to the change in value of the hedged instruments. Also, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, or if the counterparty to the contract is unable to perform. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. Forward Commitments. The Fund may purchase debt securities on a "when-issued" or "forward delivery" basis. Delivery and payment for securities which have been purchased or sold on a forward commitment basis can take place a month or more (not to exceed 120 days) after the date of the transaction. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The Fund will establish a segregated account consisting of cash or liquid high-quality debt securities equal to the amount of the commitment to purchase when-issued or forward delivery securities. The value of the securities underlying a forward commitment to purchase securities, and any subsequent fluctuations in their value, is taken into account when determining the portfolio's net asset value starting on the day the portfolio agrees to purchase the securities. At April 30, 2000, the forward commitments were $991,667 in Strategic Income Fund and $3,858,737 in U.S. Government Securities Fund. 69 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - ------------------------------------------------------------------------------- Note 2 - continued Mortgage Dollar Rolls. Each of the Funds except the Money Market Fund may enter into mortgage dollar rolls in which they sell mortgage-backed securities for normal delivery in the current month and simultaneously contract to repurchase similar, but not identical, securities at the same price on an agreed upon date. The portfolio receives compensation as consideration for entering into the commitment to repurchase. The compensation is recorded as deferred income and amortized to income over the roll period. As the holder, the counterparty receives all principal and interest payments, including prepayments, made with respect to the similar security. Mortgage dollar rolls may be renewed with a new sale and repurchase price with a cash settlement made at renewal without physical delivery of the securities subject to the contract. Futures Contracts. The Fund may enter into futures contacts. Upon entering into a futures contract, the portfolio is required to deposit with the custodian on behalf of the broker an amount of cash or cash equivalents equal to a certain percentage of the contract amount, which is known as the "initial margin". The potential risk to the Fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. Also, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, or if the counterparty to the contract is unable to perform. Subsequent payments, called "variation margin", are made or received by the portfolio, depending upon the fluctuation of the value of the futures contract. When futures contracts are closed, the difference between the opening value at the date of purchase and the value at closing is recorded as realized gain/(loss) in the Statement of Operations. Securities Lending. The Fund may lend its portfolio securities in amounts up to 33% of its total non-cash assets to brokers, dealers and other financial institutions, provided such loans are callable at any time and are at all times fully collateralized by cash, cash equivalents, short term investments or securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, and marked to market to the value of the loaned securities on a daily basis. The portfolio may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. Consequently, loans of portfolio securities will only be made to firms deemed by the Subadvisers to be creditworthy. The portfolio receives compensation for lending its securities either in the form of fees or by retaining a portion of interest on the investment of any cash received as collateral. Cash collateral provided is invested in the State Street Bank and Trust Company Navigator Securities Lending Trust. The related income is included as interest income in the Statements of Operations. All collateral received will be in an amount equal to at least 100% of the market value of the loaned securities and should be maintained at that level during the period of the loan. During the loan period, the portfolio continues to retain rights of ownership, including dividends and interest of the loaned securities. At April 30, 2000, the value of the securities loaned amounted to $2,991,224, $3,489,224, $10,640,568, $4,459,614, $9,406,919, $4,254,594, $7,006, and $1,310,552 in International Equity, Global Equity, Mid Cap Growth, Large Cap Growth, Growth & Income, Equity-Income, Strategic Income and Core Bond, respectively. At April 30, 2000, the value of collateral amounted to $3,161,281, $3,642,166, $10,194,186, $4,271,340, $9,571,700, $4,347,700, $7,350, and $1,334,575 in International Equity, Global Equity, Mid Cap Growth, Large Cap Growth, Growth & Income, Equity-Income, Strategic Income and Core Bond, respectively. Organization Costs. Costs incurred by each portfolio in connection with its organization are being amortized on a straight line basis over a five year period. Federal Income Taxes. The Fund's policy is for each portfolio to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and to distribute all of its taxable income to its shareholders. Accordingly, no federal income tax provision is required. Each portfolio is treated as a separate taxpayer for federal income tax purposes. Distributions of Income and Gains. Distributions of net investment income are declared as a dividend to shareholders of record as of the close of business each day and are paid monthly for Strategic Income, Investment Quality Bond, Municipal Bond, U.S. Government Securities and Money Market, semi-annually to shareholders of International Equity and Growth & Income, and annually to shareholders of International Small Cap, Global Equity, Emerging Growth, Small/Mid Cap, Growth Equity, Tax-Sensitive Equity, Equity-Income and Balanced. During any particular year, net realized gains from investment, 70 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - ------------------------------------------------------------------------------- Note 2 - continued futures and foreign currency transactions for each portfolio, in excess of available capital loss carryforwards of each portfolio, would be taxable to the portfolio if not distributed and, therefore, will be distributed to shareholders. An additional distribution may be made to the extent necessary to avoid the payment of a federal excise tax. Capital Loss Carryforwards. At April 30, 2000, capital loss carryforwards available to offset future recognized gains were approximately:
Capital Loss Carryforwards Expiration Year --------------------------------------------------- Portfolio 2002 2003 2004 2005 2006 2007 - -------------------- -------- ---------- ---- ------- -------- --------- Tax-Sensitive Equity - - - - $754,731 $991,007 Strategic Income 3,866,240 Core Bond $329,026 - - - - 186,540 Municipal Bond - - - $24,157 - 75,958 U. S. Government Securities - $1,062,756 - - - 594,779 Money Market - - - 1,130 1,156 -
Repurchase and Reverse Repurchase Agreements. Each portfolio may enter into repurchase agreements and, additionally, U.S. Government Securities may enter into reverse repurchase agreements. When a portfolio enters into a repurchase agreement through its custodian, it receives delivery of securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is equal to 102% of the repurchase price, and such portfolio will take constructive receipt of all securities underlying the repurchase agreements until such agreements expire. If the seller defaults, a portfolio would suffer a loss to the extent that proceeds from the sale of underlying securities were less than the repurchase price. Under a reverse repurchase agreement, U.S. Government Securities may sell a debt security and agree to repurchase it at an agreed upon time and at an agreed upon price. Other. Investment security transactions are accounted for on the trade date. Interest income is accrued as earned. Dividend income and distributions to shareholders are recorded on the ex-dividend date. All original issue discounts are accreted for financial and federal income tax reporting purposes. The Fund uses the First In, First Out method for determining realized gain or loss on investments, futures and foreign currency for both financial and federal income tax reporting purposes. Capital Accounts. The Fund reports the accumulated undistributed net investment income (loss) and accumulated undistributed net realized gain (loss) accounts on a basis approximating amounts available for future tax distributions (or to offset future taxable realized gains when a capital loss carryforward is available). Accordingly, each portfolio of the Fund may periodically make reclassifications among certain capital accounts without impacting the net asset value. 71 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - -------------------------------------------------------------------------------- 3. CAPITAL SHARES. Share activity for the period ended April 30, 2000, is as follows:
Class A Class B Class C ------------------------ ------------------------ ------------------------- Shares Capital Shares Capital Shares Capital ---------- ------------- ---------- ------------- ----------- ------------- International Small Cap Sold.................... 288,469 $8,351,308 182,830 $4,911,385 266,214 $7,547,888 Reinvestment of distributions.......... 28,290 633,967 75,977 1,645,098 61,876 1,343,395 ---------- ------------- ---------- ------------- ----------- ------------- Redeemed................ (176,394) (5,454,671) (76,342) (2,005,555) (95,421) (2,539,250) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... 140,365 $3,530,604 182,465 $4,550,928 232,669 $6,352,033 International Equity (formerly International Growth and Income) Sold.................... 279,770 $3,322,321 109,617 $1,315,663 125,019 $1,477,555 Reinvestment of distributions.......... 27,241 318,992 85,506 992,721 40,654 471,996 Redeemed................ (234,670) (2,816,656) (198,682) (2,386,228) (156,280) (1,864,149) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... 72,341 $824,657 (3,559) ($77,844) 9,393 $85,402 ---------- ------------- ---------- ------------- ----------- ------------- Global Equity Sold.................... 45,598 $606,515 32,500 $445,510 824,334 $11,111,798 Reinvestment of distributions.......... 102,952 1,452,660 223,716 3,087,256 391,118 5,420,853 Redeemed................ (261,222) (3,835,003) (475,839) (6,546,591) (1,718,550) (23,599,828) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... (112,672) ($1,775,828) (219,623) ($3,013,825) (503,098) ($7,067,177) ---------- ------------- ---------- ------------- ----------- ------------- Small Cap Growth (formerly Emerging Growth) Sold.................... 50,534 $982,834 92,664 $1,796,845 116,756 $2,170,854 Reinvestment of distributions.......... 101 1,650 328 5,418 329 5,265 Redeemed................ (7,195) (132,092) (21,196) (370,413) (18,787) (336,147) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... 43,440 $852,392 71,796 $1,431,850 98,298 $1,839,972 ---------- ------------- ---------- ------------- ----------- ------------- Mid Cap Growth (formerly Small/Mid Cap) Sold.................... 76,304 $1,585,328 177,147 $3,596,514 339,495 $6,833,806 Reinvestment of distributions.......... 49,651 952,338 157,438 2,915,850 158,928 2,949,752 Redeemed................ (62,119) (1,324,994) (127,008) (2,496,065) (367,420) (7,431,367) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... 63,836 $1,212,672 207,577 $4,016,299 131,003 $2,352,191 ---------- ------------- ---------- ------------- ----------- ------------- Large Cap Growth (formerly Growth Equity) Sold.................... 67,181 $1,549,881 301,064 $6,842,942 410,201 $9,297,592 Reinvestment of distributions.......... 33,301 727,304 104,924 2,232,012 115,285 2,448,779 Redeemed................ (61,436) (1,453,065) (131,932) (2,983,935) (207,463) (4,653,541) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... 39,046 $824,120 274,056 $6,091,019 318,023 $7,092,830 ---------- ------------- ---------- ------------- ----------- ------------- Tax-Sensitive Equity Sold.................... 3,506 $34,430 8,533 $81,620 11,487 $110,263 Redeemed................ (136,555) (1,337,155) (156,324) (1,488,697) (140,399) (1,363,340) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... (133,049) ($1,302,725) (147,791) ($1,407,077) (128,912) ($1,253,077) ---------- ------------- ---------- ------------- ----------- -------------
72 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - -------------------------------------------------------------------------------- Note 3 - continued
Class A Class B Class C --------------------------- -------------------------- --------------------------- Shares Capital Shares Capital Shares Capital ------------- ------------- ------------ ------------- ------------- ------------- Growth & Income Sold.................... 188,595 $5,224,120 442,622 $11,994,765 758,587 $20,748,971 Reinvestment of distributions.......... 105,674 2,883,868 315,661 8,440,815 449,631 12,077,270 Redeemed................ (248,498) (6,926,256) (729,262) (19,627,803) (1,128,406) (30,560,162) ------------- ------------- ------------ ------------- ------------- ------------- Net increase/(decrease)... 45,771 $1,181,732 29,021 $807,777 79,812 $2,266,079 ------------- ------------- ------------ ------------- ------------- ------------- Equity-Income Sold.................... 100,423 $1,390,713 51,453 $671,597 118,231 $1,553,537 Reinvestment of distributions.......... 229,615 2,755,542 469,845 5,591,448 1,078,510 12,931,382 Redeemed................ (395,534) (4,846,217) (827,951) (10,242,703) (1,771,543) (21,985,712) ------------- ------------- ------------ ------------- ------------- ------------- Net increase/(decrease)... (65,496) ($699,962) (306,653) ($3,979,658) (574,802) ($7,500,793) ------------- ------------- ------------ ------------- ------------- ------------- Balanced Sold.................... 26,147 $240,813 42,093 $386,157 63,443 $603,986 Reinvestment of distributions.......... 97,337 845,859 207,915 1,802,703 786,438 6,928,598 Redeemed................ (163,477) (1,499,136) (510,514) (4,655,094) (1,370,463) (12,675,119) ------------- ------------- ------------ ------------- ------------- ------------- Net increase/(decrease)... (39,993) ($412,464) (260,506) ($2,466,234) (520,582) ($5,142,535) ------------- ------------- ------------ ------------- ------------- ------------- Strategic Income Sold.................... 51,807 $430,639 84,540 $712,333 71,609 $601,159 Reinvestment of distributions.......... 24,993 209,805 54,089 454,192 54,616 458,697 Redeemed................ (298,204) (2,507,517) (588,239) (4,949,983) (653,910) (5,506,182) ------------- ------------- ------------ ------------- ------------- ------------- Net increase/(decrease)... (221,404) ($1,867,073) (449,610) ($3,783,458) (527,685) ($4,446,326) ------------- ------------- ------------ ------------- ------------- ------------- Core Bond (formerly Investment Quality Bond) Sold.................... 43,080 $423,804 29,037 $282,707 37,246 $364,270 Reinvestment of distributions.......... 7,119 69,296 8,978 87,373 9,498 92,429 Redeemed................ (105,120) (1,025,096) (100,463) (979,577) (170,563) (1,663,723) ------------- ------------- ------------ ------------- ------------- ------------- Net increase/(decrease)... (54,921) ($531,996) (62,448) ($609,497) (123,819) ($1,207,024) ------------- ------------- ------------ ------------- ------------- ------------- Municipal Bond (formerly National Municipal Bond) Sold.................... 19,200 $182,525 3,362 $31,711 453 $4,176 Reinvestment of distributions.......... 5,351 50,279 4,540 42,660 4,172 39,209 Redeemed................ (96,768) (919,408) (91,562) (860,886) (118,974) (1,119,795) ------------- ------------- ------------ ------------- ------------- ------------- Net increase/(decrease)... (72,217) ($686,604) (83,660) ($786,515) (114,349) ($1,076,410) ------------- ------------- ------------ ------------- ------------- ------------- U.S. Government Securities Sold.................... 50,577 $474,301 136,290 $1,285,041 1,369,724 $12,868,508 Reinvestment of distributions.......... 70,557 663,162 22,589 212,437 24,379 229,237 Redeemed................ (537,076) (5,044,126) (376,049) (3,536,930) (1,569,340) (14,750,865) ------------- ------------- ------------ ------------- ------------- ------------- Net increase/(decrease)... (415,942) ($3,906,593) (217,170) ($2,039,452) (175,237) ($1,653,120) ------------- ------------- ------------ ------------- ------------- ------------- Money Market Sold.................... 15,657,903 $15,657,904 5,343,293 $5,343,292 18,481,987 $18,481,987 Reinvestment of distributions.......... 104,038 104,037 79,461 79,462 154,866 154,866 Redeemed................ (11,442,301) (11,422,301) (7,130,509) (7,130,508) (20,558,807) (20,558,808) ------------- ------------- ------------ ------------- ------------- ------------- Net increase/(decrease)... 4,319,640 $4,339,640 (1,707,755) ($1,707,754) (1,921,954) ($1,921,955) ------------- ------------- ------------ ------------- ------------- -------------
73 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - -------------------------------------------------------------------------------- Note 3 - continued Share activity for the year ended October 31, 1999, was as follows:
Class A Class B Class C ------------------------ ------------------------ ------------------------- Shares Capital Shares Capital Shares Capital ---------- ------------- ---------- ------------- ----------- ------------- International Small Cap Sold.................... 38,317 $585,923 158,290 $2,313,605 99,606 $1,479,559 Reinvestment of distributions.......... Redeemed................ (114,707) (1,649,155) (177,019) (2,565,436) (158,567) (2,352,841) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... (76,390) ($1,063,232) (18,729) ($251,831) (58,961) ($873,282) ---------- ------------- ---------- ------------- ----------- ------------- International Equity (formerly International Growth & Income) Sold.................... 199,128 $2,104,258 276,576 $2,901,231 218,156 $2,308,683 Reinvestment of distributions.......... 44,088 424,134 131,412 1,264,722 73,392 706,029 Redeemed................ (272,419) (2,839,795) (490,983) (5,115,710) (263,329) (2,792,273) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... (29,203) ($311,403) (82,995) ($949,757) 28,219 $222,439 ---------- ------------- ---------- ------------- ----------- ------------- Global Equity Sold.................... 446,573 $7,442,815 280,820 $4,734,000 526,057 $8,521,394 Reinvestment of distributions.......... 152,180 2,323,793 136,778 2,076,461 262,341 3,998,091 Redeemed................ (605,332) (10,137,623) (525,613) (8,376,635) (1,026,358) (16,728,703) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... (6,579) ($371,015) (108,015) ($1,566,174) (237,960) ($4,209,218) ---------- ------------- ---------- ------------- ----------- ------------- Small Cap Growth (formerly Emerging Growth) Sold.................... 22,245 $229,241 30,970 $308,715 27,355 $289,054 Reinvestment of distributions.......... Redeemed................ (5,767) (60,513) (1,200) (10,251) (438) (3,923) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... 16,478 $168,728 29,770 $298,464 26,917 $285,131 ---------- ------------- ---------- ------------- ----------- ------------- Mid Cap Growth (formerly Small/Mid Cap) Sold.................... 183,881 $2,977,455 366,794 $5,878,496 478,367 $7,674,000 Reinvestment of distributions.......... 4,511 64,099 13,425 188,347 13,917 195,545 Redeemed................ (158,019) (2,553,137) (263,887) (4,140,429) (342,381) (5,487,633) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... 30,373 $488,417 116,332 $1,926,414 149,903 $2,381,912 ---------- ------------- ---------- ------------- ----------- ------------- Large Cap Growth (formerly Growth Equity) Sold.................... 139,044 $2,458,526 264,945 $4,640,723 222,095 $3,924,774 Reinvestment of distributions.......... 16,479 255,776 47,951 737,982 69,363 1,066,801 Redeemed................ (113,974) (2,026,744) (180,039) (3,088,010) (304,031) (5,337,043) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... 41,549 $687,558 132,857 $2,290,695 (12,573) ($345,468) ---------- ------------- ---------- ------------- ----------- ------------- Tax-Sensitive Equity Sold.................... 505,569 $5,423,710 327,006 $3,440,453 373,346 $3,674,143 Redeemed................ (47,892) (502,935) (6,225) (55,022) (9,883) (84,557) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... 457,677 $4,920,775 320,781 $3,385,431 363,463 $3,589,586 ---------- ------------- ---------- ------------- ----------- ------------- Growth & Income Sold.................... 875,486 $20,239,609 951,247 $22,019,893 1,138,031 $26,430,588 Reinvestment of distributions.......... 127,179 2,612,268 202,572 4,138,748 348,181 7,145,010 Redeemed................ (804,113) (18,494,847) (538,445) (12,243,375) (925,887) (21,379,820) ---------- ------------- ---------- ------------- ----------- ------------- Net increase/(decrease)... 198,552 $4,357,030 615,374 $13,915,266 560,325 $12,195,778 ---------- ------------- ---------- ------------- ----------- -------------
74 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - -------------------------------------------------------------------------------- Note 3 - continued
Class A Class B Class C --------------------------- ------------------------- --------------------------- Shares Capital Shares Capital Shares Capital ------------- ------------- ------------ ------------ ------------- ------------- Equity-Income Sold.................... 479,470 $8,464,050 386,814 $6,812,335 766,845 $13,528,867 Reinvestment of distributions.......... 194,948 3,251,762 170,544 2,827,635 446,831 7,448,669 Redeemed................ (678,934) (11,894,736) (421,373) (7,372,953) (1,197,874) (21,063,343) ------------- ------------- ------------ ------------ ------------- ------------- Net increase/(decrease)... (4,516) ($178,924) 135,985 $2,267,017 15,802 ($85,807) ------------- ------------- ------------ ------------ ------------- ------------- Balanced Sold.................... 233,949 $2,624,837 349,775 $3,884,232 310,079 $3,514,608 Reinvestment of distributions.......... 222,869 2,300,076 274,666 2,832,512 1,113,960 11,629,960 Redeemed................ (177,968) (1,997,969) (335,330) (3,806,142) (1,193,333) (13,589,791) ------------- ------------- ------------ ------------ ------------- ------------- Net increase/(decrease)... 278,850 $2,926,944 289,111 $2,910,602 230,706 $1,554,777 ------------- ------------- ------------ ------------ ------------- ------------- Strategic Income Sold.................... 370,479 $3,594,336 691,131 $6,593,782 1,046,821 $10,134,342 Reinvestment of distributions.......... 95,493 912,850 149,034 1,426,572 220,511 2,109,372 Redeemed................ (396,621) (3,797,754) (1,136,578) (10,809,182) (887,028) (8,446,963) ------------- ------------- ------------ ------------ ------------- ------------- Net increase/(decrease)... 69,351 $709,432 (296,413) ($2,788,828) 380,304 $3,796,751 ------------- ------------- ------------ ------------ ------------- ------------- Core Bond (formerly Investment Quality Bond) Sold.................... 170,210 $1,802,178 117,621 $1,245,709 198,006 $2,105,448 Reinvestment of distributions.......... 33,910 360,020 22,312 236,748 25,597 271,574 Redeemed................ (246,964) (2,627,068) (122,141) (1,294,362) (283,354) (3,004,137) ------------- ------------- ------------ ------------ ------------- ------------- Net increase/(decrease)... (42,844) ($464,870) 17,792 $188,095 (59,751) ($627,115) ------------- ------------- ------------ ------------ ------------- ------------- Municipal Bond (formerly National Municipal Bond) Sold.................... 65,843 $675,842 34,659 $354,757 85,884 $879,629 Reinvestment of distributions.......... 13,963 142,649 13,125 134,060 15,971 163,141 Redeemed................ (139,834) (1,426,114) (179,502) (1,839,689) (124,211) (1,268,991) ------------- ------------- ------------ ------------ ------------- ------------- Net increase/(decrease)... (60,028) ($607,623) (131,718) ($1,350,872) (22,356) ($226,221) ------------- ------------- ------------ ------------ ------------- ------------- U.S. Government Securities Sold.................... 504,070 $5,044,310 940,887 $9,443,101 813,806 $8,150,377 Reinvestment of distributions.......... 197,452 1,973,152 52,081 520,627 59,278 592,076 Redeemed................ (1,134,417) (11,333,731) (896,940) (8,975,680) (1,092,107) (10,920,493) ------------- ------------- ------------ ------------ ------------- ------------- Net increase/(decrease)... (432,895) ($4,316,269) 96,028 $988,048 (219,023) ($2,178,040) ------------- ------------- ------------ ------------ ------------- ------------- Money Market Sold.................... 19,804,375 $19,803,662 12,413,813 $12,413,585 17,413,158 $17,412,707 Reinvestment of distributions.......... 411,135 411,135 142,434 142,434 341,140 341,141 Redeemed................ (20,976,437) (20,976,438) (9,968,556) (9,968,557) (17,056,318) (17,056,319) ------------- ------------- ------------ ------------ ------------- ------------- Net increase/(decrease)... (760,927) ($761,641) 2,587,691 $2,587,462 697,980 $697,529 ------------- ------------- ------------ ------------ ------------- -------------
75 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - ------------------------------------------------------------------------------- 4. PURCHASES AND SALES OF SECURITIES. The following table summarizes the securities transactions (excluding short-term investments) for all portfolios, excluding Money Market, for the period ended April 30, 2000:
Purchases Sales ---------------------------- --------------------------- Other Portfolio U.S. Government Other Issues U.S. Government Issues - ------------------------ --------------- ------------ --------------- ----------- International Small Cap. $89,302,463 $82,804,755 International Equity ... 7,958,683 10,885,825 Global Equity........... 84,132,626 105,544,607 Small Cap Growth........ 5,569,740 1,903,150 Mid Cap Growth.......... 88,441,907 86,995,478 Large Cap Growth........ 50,478,165 44,596,748 Tax-Sensitive Equity.... 253,735 4,131,477 Growth & Income......... 29,588,152 50,302,354 Equity-Income........... 20,544,318 55,370,035 Balanced................ $6,835,009 96,861,978 $32,630,045 86,684,050 Strategic Income........ 5,270,709 12,935,748 5,973,861 27,274,443 Core Bond............... 201,835 1,706,895 565,590 3,184,364 Municipal Bond.......... 1,971,177 4,424,513 U.S. Government Securities............. 33,316,930 38,400,980
At April 30, 2000, tax basis net unrealized appreciation was equal to the aggregate gross unrealized appreciation for all securities in which there was an excess of market value over tax cost and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over market value as follows:
Tax Basis Net Unrealized Tax Basis Tax Basis Tax Basis Appreciation Unrealized Unrealized Portfolio Cost (Depreciation) Appreciation Depreciation - -------------------------- ----------- -------------- ------------ ------------ International Small Cap... $31,346,927 $(3,193,664) $1,491,090 $(4,684,754) International Equity ..... 25,283,623 1,340,680 3,164,117 (1,823,437) Global Equity............. 52,709,124 (2,352,627) 2,568,180 (4,920,807) Small Cap Growth.......... 5,682,932 64,309 1,052,285 (987,976) Mid Cap Growth............ 53,090,935 (5,527,942) 3,963,070 (9,491,012) Large Cap Growth.......... 5,884,879 (137,638) 850,338 (987,976) Tax-Sensitive Equity...... 3,938,850 1,300,978 1,407,731 (106,753) Growth & Income........... 177,966,437 113,441,311 122,820,272 (9,378,961) Equity-Income............. 66,248,173 1,986,260 6,204,490 (4,218,230) Balanced.................. 55,470,923 (181,809) 20,842 (202,651) Strategic Income.......... 42,135,603 (2,860,069) 425,827 (3,285,896) Core Bond................. 10,401,978 (627,708) (52,425) (575,283) Municipal Bond............ 9,762,628 (78,770) 123,881 (202,651) U.S. Government Securities............... 55,468,540 (2,240,940) 27,257 (2,268,197)
76 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - ------------------------------------------------------------------------------- 5. INVESTMENT ADVISORY AGREEMENTS. For the period November 01, 1999 through March 10, 2000 the Fund maintained an Investment Advisory Agreement with CAM. Effective March 13, 2000 the Fund maintains an Investment Advisory Agreement with AGAM ("the Adviser"), pursuant to approval by the Fund's Board of Trustees and Fund shareholders scheduled to take place in June 2000. The Adviser is responsible for managing the corporate and business affairs of the Fund and for selecting and compensating subadvisers to handle the investment and reinvestment of the assets of each portfolio, subject to the supervision of the Trustees of the Fund. As compensation for its services, the Adviser receives a fee from the Fund computed separately for each portfolio at an annual percentage of average net assets as follows:
Between Between $50,000,000 $200,000,000 First and and Excess over Portfolio $50,000,000 $200,000,000 $500,000,000 $500,000,000 - --------- ----------- ------------ ------------ ------------ International Small Cap...... 1.050% 1.000% .900% .800% International Equity......... .900% .850% .800% .750% Global Equity................ .900% .900% .700% .700% Small Cap Growth............. .950% .950% .950% .950% Mid Cap Growth............... .925% .900% .875% .850% Large Cap Growth............. .900% .850% .825% .800% Tax-Sensitive Equity......... .850% .800% .775% .700% Growth & Income.............. .725% .675% .625% .550% Equity-Income................ .750% .650% .550% .550% Balanced..................... .775% .725% .675% .625% Strategic Income............. .750% .700% .650% .600% Core Bond.................... .600% .600% .525% .475% Municipal Bond............... .600% .600% .600% .600% U.S. Government Securities... .600% .600% .525% .475% Money Market................. .200% .200% .200% .145%
* Prior to May 12, 1999, the fees for Equity-Income were .800% on the first $50,000,000, .700% on the next $150,000,000, and .600% thereafter. For the period ended April 30, 2000, AGAM paid aggregate subadvisory fees of $1,475,902. In addition, AGAM retained net investment advisory fees of $1,622,582 after payment of subadvisory fees, which were allocated among the portfolios as follows:
Fee % of Net Assets Fee % of Net Assets Paid to Paid to Retained Retained by Portfolio Subadviser Subadviser by AGAM Adviser - --------- ---------- --------------- -------- --------------- International Small Cap. $95,897 0.62% $65,607 0.42% International Equity.... 65,013 0.50% 52,011 0.40% Global Equity........... 171,437 0.49% 146,509 0.41% Small Cap Growth........ 10,573 0.55% 7,689 0.40% Mid Cap Growth.......... 137,791 0.53% 103,816 0.40% Large Cap Growth........ 131,123 0.50% 106,929 0.40% Tax-Sensitive Equity.... 15,643 0.45% 13,905 0.40% Growth & Income......... 398,475 0.27% 597,593 0.40% Equity-Income........... 158,313 0.36% 158,313 0.36% Balanced................ 118,390 0.37% 127,101 0.40% Strategic Income........ 79,406 0.35% 90,776 0.40% Core Bond............... 12,750 0.23% 20,694 0.37% Municipal Bond.......... 13,835 0.25% 19,549 0.35% U.S. Government Securities............. 60,054 0.23% 100,090 0.38% Money Market............ 7,202 0.08% 12,003 0.13%
Expense Reimbursement and Distribution Plan. Pursuant to the Investment Advisory Agreement, the Adviser will reduce the advisory fee, or, if necessary, reimburse each portfolio of the Fund for expenses (excluding taxes, portfolio brokerage commissions, interest, certain litigation and indemnification expenses, extraordinary expenses and all of the portfolio's distribution fees) incurred in excess (Expense limitation) of the following annual percentages of average net assets as highlighted in the table below. 77 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - -------------------------------------------------------------------------------- Note 5 - continued The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940 to use its assets to finance certain activities relating to the distribution of its shares to investors. The Plan is a "compensation" plan providing for the payment by each portfolio, other than Money Market, of a monthly distribution fee to the Adviser as principal underwriter for the Fund as highlighted in the table below:
Portfolio Class A Class B Class C --------- ------- ------- ------- International Small Cap Management fees....................................... 1.050% 1.050% 1.050% Other expenses........................................ 0.650% 0.650% 0.650% ------ ------- ------- Expense limitation.................................... 1.700% 1.700% 1.700% ------ ------- ------- Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15,1999, the expense limitation was increased from 1.550% to 1.70% International Equity Management fees....................................... 0.900% 0.900% 0.900% Other expenses........................................ 0.650% 0.650% 0.650% ------ ------- ------- Expense limitation.................................... 1.550% 1.550% 1.550% ------ ------- ------- Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15,1999, the expense limitation was increased from 1.400% to 1.550% Global Equity Management fees....................................... 0.900% 0.900% 0.900% Other expenses........................................ 0.620% 0.620% 0.620% ------ ------- ------- Expense limitation.................................... 1.520% 1.520% 1.520% ------ ------- ------- Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15,1999, the expense limitation was increased from 1.400% to 1.520% Small Cap Growth (formerly Emerging Growth) Management fees....................................... 0.950% 0.950% 0.950% Other expenses........................................ 0.520% 0.520% 0.400% ------ ------- ------- Expense limitation.................................... 1.470% 1.470% 1.470% ------ ------- ------- Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15,1999, the expense limitation was increased from 1.350% to 1.470% Mid Cap Growth (formerly Small/Mid Cap) Management fees....................................... 0.925% 0.925% 0.925% Other expenses........................................ 0.500% 0.500% 0.500% ------ ------- ------- Expense limitation.................................... 1.430% 1.430% 1.430% ------ ------- ------- Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15,1999, the expense limitation was increased from 1.325% to 1.43% Large Cap Growth (formerly Growth Equity) Management fees....................................... 0.900% 0.900% 0.900% Other expenses........................................ 0.500% 0.500% 0.500% ------ ------- ------- Expense limitation.................................... 1.400% 1.400% 1.400% ------ ------- ------- Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15,1999, the expense limitation was increased from 1.300% to 1.400% Tax-Sensitive Equity Management fees....................................... 0.850% 0. 850% 0. 850% Other expenses........................................ 0.400% 0.400% 0.400% ------ ------- ------- Expense limitation.................................... 1.250% 1.250% 1.250% ------ ------- ------- Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
78 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - -------------------------------------------------------------------------------- Note 5 -- continued
Portfolio Class A Class B Class C --------- ------- ------- ------- Growth & Income Management fees....................................... 0.725% 0.725% 0.725% Other expenses........................................ 0.385% 0.385% 0.385% ------ ------ ------ Expense limitation.................................... 1.110% 1.110% 1.110% ------ ------ ------ Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15, 1999, the expense limitation was increased from 0.990% to 1.11% Equity-Income Management fees....................................... 0.750% 0.750% 0.750% Other expenses........................................ 0.370% 0.370% 0.370% ------ ------ ------ Expense limitation.................................... 1.120% 1.120% 1.120% ------ ------ ------ Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15, 1999, the expense limitation was increased from 1.020% to 1.120% Balanced Management fees....................................... 0.775% 0.775% 0.775% Other expenses........................................ 0.385% 0.385% 0.385% ------ ------ ------ Expense limitation.................................... 1.160% 1.160% 1.160% ------ ------ ------ Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15, 1999, the expense limitation was increased from 1.040% to 1.160% Strategic Income Management fees....................................... 0.750% 0.750% 0.750% Other expenses........................................ 0.450% 0.450% 0.450% ------ ------ ------ Expense limitation.................................... 1.200% 1.200% 1.200% ------ ------ ------ Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15, 1999, the expense limitation was increased from 1.150% to 1.200% Core Bond (formerly Investment Quality Bond) Management fees....................................... 0.600% 0.600% 0.600% Other expenses........................................ 0.350% 0.350% 0.350% ------ ------ ------ Expense limitation.................................... 0.950% 0.950% 0.950% ------ ------ ------ Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% On December 15, 1999, the expense limitation was increased from 0.900% to 0.950% Municipal Bond (formerly National Municipal Bond) Management fees....................................... 0.600% 0.600% 0.600% Other expenses........................................ 0.250% 0.250% 0.250% ------ ------ ------ Expense limitation.................................... 0.850% 0.850% 0.850% ------ ------ ------ Rule 12b-1 fees....................................... 0.150% 1.000% 1.000% U.S. Government Securities Management fees....................................... 0.600% 0.600% 0.600% Other expenses........................................ 0.300% 0.300% 0.300% ------ ------ ------ Expense limitation.................................... 0.900% 0.900% 0.900% ------ ------ ------ Rule 12b-1 fees....................................... 0.350% 1.000% 1.000% Money Market Management fees....................................... 0.200% 0.200% 0.200% Other expenses........................................ 0.500% 0.500% 0.500% ------ ------ ------ Expense limitation.................................... 0.700% 0.700% 0.700% ------ ------ ------ On December 15, 1999, the expense limitation was increased from 0.500% to 0.700%
79 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - ------------------------------------------------------------------------------- Note 5 - continued In accordance with the Investment Advisory agreement, the Adviser, in addition to providing advisory services, provides accounting and administrative services for which AGAM charged $749,621 to the Fund, before reimbursement based on expense limitations, for the period ended April 30, 2000. 6. TRUSTEE'S FEES. The Fund pays each Trustee who is not an employee or a director of the Adviser or its affiliates a fee of $750 plus travel expenses for each Board of Trustees meeting attended and an annual retainer of $3,000. 7. LINE OF CREDIT. The Fund has entered into an agreement with Fleet Bank that provides a $20,000,000 Line of Credit to the Fund which may be used for cash overdraft protection. The Fund pays a commitment fee of $20,000 annually, and interest is charged on any borrowed amounts at the currently effective Federal Funds Rate plus .55%. This Line of Credit was not used during the period ended April 30, 2000. 8. COMMITMENTS. At April 30, 2000, International Small Cap and International Equity had entered into forward foreign currency contracts which contractually obligate the portfolio to deliver currencies at future dates. Open sale and purchase contracts at April 30, 2000, were as follows: FORWARD CONTRACTS
Contracts In Net Unrealized to Exchange Settlement Appreciation Deliver For Date Value (Depreciation) --------- -------- ---------- -------- -------------- International Small Cap Sales Australian Dollars...... 12,804 $7,522 5/01/00 $7,478 $44 Australian Dollars...... 59,190 34,686 5/02/00 34,567 119 Canadian Dollars........ 8,255 5,566 5/01/00 5,554 12 Canadian Dollars........ 7,239 4,900 5/02/00 4,888 12 Euro.................... 30,198 27,667 5/02/00 27,454 213 Euro.................... 105,565 96,149 5/03/00 95,969 180 British Pounds.......... 14,072 22,269 5/02/00 21,910 359 British Pounds.......... 32,356 51,073 5/03/00 50,376 697 British Pounds.......... 44,036 69,369 5/04/00 68,563 806 British Pounds.......... 61,959 97,313 5/05/00 96,467 846 Hong Kong Dollars....... 519,971 66,757 5/02/00 66,755 2 Norwegian Krone......... 124,931 14,165 5/02/00 13,946 219 Norwegian Krone......... 52,436 5,852 5/03/00 5,853 (1) Swedish Krona........... 889,775 100,099 5/02/00 99,238 861 Swedish Krona........... 258,565 28,938 5/03/00 28,838 100 -------- -------- ------ $632,325 $627,856 $4,469 -------- -------- ------
Net Unrealized Contracts Settlement Appreciation to Deliver In Exchange For Date Value (Depreciation) ---------- ---------------------------- ---------- ---------- -------------- Purchases $45,058 769,598 Swiss Francs 5/02/00 $44,416 ($642) 184,053 317,379 Swiss Francs 5/03/00 184,036 (17) 184,634 202,061 Euro 5/02/00 183,694 (940) 137,052 150,475 Euro 5/03/00 136,797 (255) 68,409 43,229 British Pounds 5/02/00 67,305 (1,104) 36,495 23,161 British Pounds 5/04/00 36,060 (435) 20,495 159,637 Hong Kong Dollars 5/02/00 20,495 -- 367,852 39,060,747 Japanese Yen 5/01/00 361,623 (6,228) 77,974 8,289,442 Japanese Yen 5/02/00 76,743 (1,231) 82,065 422,876 Swedish Krona 5/02/00 81,293 (772) 145,934 1,298,696 Swedish Krona 5/03/00 144,847 (1,087) 165,616 282,251 Singapore Dollars 5/02/00 165,398 (219) 42,619 72,623 Singapore Dollars 5/03/00 42,556 (63) ---------- ---------- -------- $1,558,256 $1,545,263 ($12,993) ---------- ---------- -------- ($8,524) --------
80 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - ------------------------------------------------------------------------------- Note 8 - continued
In Net Unrealized Contracts Exchange Settlement Appreciation to Deliver For Date Value (Depreciation) ----------- ---------- ---------- ---------- -------------- International Equity - -------------------- Sales Euro................... 531,375 $509,217 6/12/00 $484,588 $24,628 Japanese Yen........... 307,416,297 2,869,100 5/08/00 2,851,107 17,993 Japanese Yen........... 46,500,000 451,785 6/19/00 434,549 17,236 Japanese Yen........... 60,621,970 583,545 7/21/00 569,737 13,808 ---------- ---------- ------- $4,413,647 $4,339,981 $73,665 ---------- ---------- -------
Net Unrealized Contracts Settlement Appreciation to Deliver In Exchange For Date Value (Depreciation) ---------- -------------------------- ---------- --------- -------------- Purchases $37,306 40,344 Euro 5/02/00 36,679 ($627) 40,160 43,415 Euro 5/03/00 39,483 (677) 10,882 11,755 Euro 5/15/00 10,700 (182) 756,420 830,810 Euro 5/31/00 757,086 666 7,000 7,519 Euro 6/12/00 6,857 (143) 284,960 180,158 British Pounds 5/02/00 280,504 (4,456) 50,975 32,325 British Pounds 5/04/00 50,330 (645) 51,164 5,427,507 Japanese Yen 5/01/00 50,274 (890) 60,448 6,329,000 Japanese Yen 5/02/00 58,635 (1,813) 2,879,695 301,087,297 Japanese Yen 5/08/00 2,792,409 (87,286) 449,580 46,500,000 Japanese Yen 6/19/00 434,549 (15,031) ---------- --------- --------- $4,628,590 4,517,506 ($111,084) ---------- --------- --------- ($37,419) ---------
FUTURES CONTRACTS Futures Contracts outstanding at April 30, 2000, were as follows:
Net Unrealized Aggregate Expiration Total Appreciation Cost Date Value (Depreciation) --------- ---------- -------- -------------- International Equity - -------------------- DAX Index (Short)................ $478,202 06/17/00 $508,710 $(30,508) TOPIX Index (Short).............. 145,165 06/09/00 153,451 (8,286) NIKKEI 300 Index (Short)......... 115,539 06/08/00 118,835 (3,296) -------- -------- -------- $738,906 $780,996 $(42,090) -------- -------- --------
9. SUBSEQUENT EVENTS. On June 1, 2000 the shareholders of the Funds approved the Investment Advisory Agreement between American General Asset Management Corporation and North American Funds as to each series of the Fund. The shareholders also voted to approve the Investment Subadvisory Agreement with American General Investment Management, L.P. for Strategic Income, Municipal Bond, Core Bond, U.S. Government Securities and Money Market. On June 1, 2000 the shareholders of the Equity Income and Tax Sensitive Funds voted to approve the acquisition of all of the assets and liabilities (net) of the Equity Income and Tax Sensitive Funds by the Growth and Income Fund. 81 NORTH AMERICAN FUNDS NOTES TO FINANCIAL STATEMENTS (unaudited) - ------------------------------------------------------------------------------- OTHER INFORMATION Shareholder Votes (Unaudited) The following matters were put to a vote of shareholders of the Portfolios shown: Equity-Income Fund- On June 1, 2000 a special shareholder meeting was held at which the shareholders approved the acquisition of all of its assets and liabilities (net) by the Growth & Income Fund. At the meeting 2,929,849 votes were cast in favor of the proposal, 97,082 were against the proposal, and there were 240,117 abstentions with respect to the proposal. Tax-Sensitive Fund- On June 1, 2000 a special shareholder meeting was held at which the shareholders approved the acquisition of all of its assets and liabilities (net) by the Growth & Income Fund. At the meeting 276,865 votes were cast in favor of the proposal, 11,170 were against the proposal, and there were 22,265 abstentions with respect to the proposal. North American Funds- On June 1, 2000 a special shareholder meeting was held at which the shareholders approved the Investment Advisory Agreement between American General Asset Management Corporation and the North American Funds as to each series of the Fund. At the meeting votes were cast as follows:
In favor of proposal Against proposal Abstentions -------------------- ---------------- ----------- International Small Cap...... 802,173 43,839 33,671 International Equity......... 1,059,534 5,625 39,795 Global Equity... 2,522,896 156,898 139,153 Small Cap Growth......... 242,376 38,006 24,608 Mid Cap Growth.. 1,449,582 95,053 73,275 Large Cap Growth......... 1,335,281 97,171 70,879 Tax-Sensitive Equity......... 207,993 10,274 13,871 Growth & Income. 5,342,207 36,690 138,805 Equity-Income... 2,455,059 48,613 123,434 Balanced........ 3,170,764 191,770 213,897 Strategic Income......... 3,461,436 14,062 158,848 Core Bond....... 608,650 6,146 44,831 Municipal Bond.. 722,486 414 28,120 U.S. Government Securities..... 3,751,948 22,773 89,883 Money Market.... 12,707,641 489,715 469,301
North American Funds- On June 1, 2000 a special shareholder meeting was held at which the shareholders approved the Investment Subadvisory Agreement between American General Asset Management Corporation and American General Investment Management, L.P. with respect to Strategic Income, Municipal Bond, Core Bond, U.S. Government Securities and Money Market. At the meeting votes were cast as follows:
In favor of proposal Against proposal Abstentions -------------------- ---------------- ----------- Strategic Income......... 3,450,364 23,630 160,351 Core Bond....... 614,031 5,824 39,765 Municipal Bond.. 725,934 414 24,672 U.S. Government Securities..... 3,744,871 22,650 97,083 Money Market.... 12,674,445 511,708 480,504
82 Trustees Alice T. Kane, Chairperson Joseph T. Grause, Jr. Dr. Judith L. Craven Dr. Timothy J. Ebner Judge Gustavo E. Gonzales, Jr. William F. Devin Kenneth J. Lavery Dr. John E. Maupin, Jr. Ben H. Love Officers Alice T. Kane, President and Chairperson Joseph T. Grause, Jr., Vice President Thomas J. Brown, Vice President and Treasurer John I. Fitzgerald, Vice President and Secretary John N. Packs, Vice President and Assistant Treasurer Distributor American General Funds Distributors, Inc. 286 Congress Street Boston, MA 02210 Adviser American General Asset Management Corp. 286 Congress Street Boston, MA 02110 Transfer and Dividend Agent State Street Bank and Trust Company P.O. Box 8505 Boston, MA 02266-8505 Independent Accountants PricewaterhouseCoopers LLP 160 Federal Street Boston, MA 02110 North American Funds Shareholder Services 286 Congress Street Boston, MA 02210 800-872-8037 151NAF0400:90310 -----END PRIVACY-ENHANCED MESSAGE-----