-----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, LQF4YnxB/EA99tEBx0SqSvO/UzxzfkC/MQ4Xq2T0a7Vahsb8y24ZgdcsmpBmlhwH Al3OzD5a36GhYWIwft1z0w== 0000950109-99-002424.txt : 19990709 0000950109-99-002424.hdr.sgml : 19990709 ACCESSION NUMBER: 0000950109-99-002424 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990430 FILED AS OF DATE: 19990708 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTH AMERICAN FUNDS CENTRAL INDEX KEY: 0000848103 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05797 FILM NUMBER: 99660806 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 1999 SEMI-ANNUAL REPORT [GRAPHIC APPEARS HERE] REPORT TO SHAREHOLDERS North American Funds Semi-Annual Report April 30, 1999 Unaudited Financial Statements NORTH AMERICAN FUNDS President's Message - -------------------------------------------------------------------------------- June 10, 1999 Dear Shareholder: During the six-month period that ended April 30, 1999, the U.S. economy provided a positive environment for stock investors. Economic growth continued to be strong and interest rates and inflation remained at moderate levels. In addition, the financial and economic problems that for more than a year had plagued Japan and several of the emerging market economies of Asia and Latin America appeared to have reversed course. This change in economic direction was positive for U.S. companies, because as these foreign economies improve, they are likely to purchase more goods and services from U.S. firms. As a result, U.S. companies have the potential for greater revenues and profits. Within this favorable framework, the Dow Jones Industrial Average (DJIA) reached the 10,000 mark for the first time in history and has recently exceeded 11,000. For the six months ended April 30, 1999, the DJIA had produced a 25.6% return and the Standard & Poor's 500 Stock Index (S&P 500) had risen 21.5%. For most of the period, this strong upward momentum masked the fact that the market's breadth -- the number of stocks that had participated in the upward trend - was relatively narrow. As had been the case for more than a year, large cap stocks - particularly those related to technology and the Internet - were market leaders. Smaller cap stocks trailed their large cap counterparts. For the six months ended April 30, 1999, the return of the Russell 2000 Index, a measure of small cap stock performance, was 15.2%. As we moved into the second quarter of 1999, investor sentiment broadened beyond the technology sector into cyclical stocks. Cyclical stocks tend to perform well when economies improve and poorly when economies weaken. As global economies recovered from recession, investors sought economically sensitive stocks in the oil, steel, chemicals, paper and similar industries. During April, some of the best performing stocks were cyclicals, while the valuations on many large cap growth stocks were unchanged or declined in value. At North American Funds one of our objectives is to provide you with the best fund management available. To this end, we carefully select and closely monitor our managers, continually analyzing their performance and comparing them with their peers in each respective asset class and investment discipline. In short, we identify and hire specialized managers who we believe can best meet the needs of our shareholders. Over the past few months, we have had two changes in the North American Funds line-up. Effective April 1, 1999, Global Alliance Value Investors, Ltd. became the manager for the Equity-Income Fund and Morgan Stanley Asset Management became the manager of the International Equity Fund (formerly known as the International Growth and Income Fund). We believe these manager changes have the potential to better serve your long-term investment needs. If you have questions regarding your investments, please call your investment representative or our customer service team at 1- 800-872-8037. Thank you for selecting North American Funds. We look forward to serving your investment needs. Sincerely, /s/ Bradford K. Gallagher Bradford K. Gallagher President, North American Funds NORTH AMERICAN FUNDS Index to Semi-Annual Report - -------------------------------------------------------------------------------- Page Statements of Assets and Liabilities................................ 1 Statements of Operations............................................ 7 Statements of Changes in Net Assets................................. 10 Financial Highlights................................................ 14 Portfolio of Investments International Small Cap Fund................................... 33 International Equity Fund (formerly the International Growth and Income Fund.................................... 34 Global Equity Fund............................................. 39 Emerging Growth Fund........................................... 40 Small/Mid Cap Fund............................................. 41 Growth Equity Fund............................................. 42 Tax-Sensitive Equity Fund...................................... 44 Growth and Income Fund......................................... 45 Equity-Income Fund............................................. 46 Balanced Fund.................................................. 47 Strategic Income Fund.......................................... 48 Investment Quality Bond Fund................................... 52 National Municipal Bond Fund................................... 56 U.S. Government Securities Fund................................ 57 Money Market Fund.............................................. 58 Notes to Financial Statements....................................... 59 ii NORTH AMERICAN FUNDS STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) ================================================================================
International International Global Emerging Small/Mid Small Cap Equity Equity Growth Cap Fund Fund** Fund Fund Fund ------------- ------------- ------------ ------------ ------------ ASSETS: - ------ Investments in securities, at value* (See accompanying Portfolio of Investments) .... $ 17,888,775 $ 25,441,185 $118,747,490 $ 941,446 $ 52,632,679 Receivable for forward foreign currency contracts to sell (Notes 2 and 7) ......... 51,564 5,543,031 8,243,846 -- -- Forward foreign currency contracts to buy, at value (Cost: $4,429,535 in International Equity) ................................... -- 4,374,690 -- -- -- Cash ........................................... 43,814 -- 71,884 88 -- Foreign currency (Cost: $89,799 in International Small Cap, $879,155 in International Equity and $848,867 in Global Equity) ............................ 89,180 879,027 847,518 -- -- Unamortized organization costs ................. -- -- -- 24,132 -- Receivables: Investments sold ....................... 51,345 -- 421,922 31,283 462,284 Fund shares sold ....................... 8,728 8,383 286 -- 92,027 Dividends .............................. 7,517 47,358 306,783 -- 442 Interest ............................... 1,130 571 4 106 3,266 Foreign tax withholding reclaims ....... 5,680 26,806 66,482 -- -- From adviser ........................... 2,893 -- 1,143 3,287 4,879 Other assets ................................... 41,174 45,462 12,932 43,446 39,276 ------------ ------------ ------------ ------------ ------------ Total assets .................... 18,191,800 36,366,513 128,720,290 1,043,788 53,234,853 ============ ============ ============ ============ ============ LIABILITIES: - ----------- Forward foreign currency contracts to sell, at value (Cost: $51,564 in International Small Cap, $5,543,031 in International Equity and $8,243,846 in Global Equity) (Notes 2 and 7) ........................... 51,345 5,368,852 8,073,378 -- -- Collateral on securities loaned, at value ...... 2,854,376 65,020 12,498,705 -- 8,163,172 Payables: Forward foreign currency contracts to buy (Notes 2 and 7) .................. -- 4,429,535 -- -- -- Investments purchased .................. 13,985 -- 1,491,980 8,668 1,462,070 Fund shares redeemed ................... 7,584 14,508 307,706 -- 54,122 Dividend and interest withholding tax .. 743 4,939 16,286 -- -- Investment adviser ..................... 16,278 24,507 77,697 729 38,893 Custodian and transfer agent fees ...... 898 7,356 61,006 981 5,585 Distribution fee ....................... 11,459 19,545 73,996 773 32,762 Due to custodian ....................... -- 53,707 -- -- -- Other accrued expenses ................. 348 -- 45,909 -- 3,594 ------------ ------------ ------------ ------------ ------------ Total liabilities ............... 2,957,016 9,987,969 22,646,663 11,151 9,760,198 ------------ ------------ ------------ ------------ ------------ NET ASSETS ..................................... $ 15,234,784 $ 26,378,544 $106,073,627 $ 1,032,637 $ 43,474,655 ============ ============ ============ ============ ============ NET ASSETS CONSIST OF: - ---------------------- Undistributed net investment income/(loss) (Note 2) ............... ($126,091) $87,156 ($76,123) ($8,166) ($336,881) Accumulated undistributed net realized gain (loss) on investments, foreign currency and forward foreign currency contracts ............................ (416,079) 1,212,134 7,624,948 (73,508) 7,016,282 Unrealized appreciation (depreciation) on: Investments ...................... 3,817,646 1,556,091 20,465,818 101,526 3,581,377 Foreign currency and forward foreign currency contracts ................. (891) 118,270 169,481 -- -- Capital shares at par value of $.001 (Note 3) ........................... 952 2,336 6,434 101 2,432 Additional paid-in capital ............. 11,959,247 23,402,557 77,883,069 1,012,684 33,211,445 ------------ ------------ ------------ ------------ ------------ Net assets ...................... $ 15,234,784 $ 26,378,544 $106,073,627 $ 1,032,637 $ 43,474,655 ============ ============ ============ ============ ============ *Investments in securities, at identified cost (Note 2) ....................................... $ 14,071,129 $ 23,885,094 $ 98,281,672 $ 839,920 $ 49,051,302 ============ ============ ============ ============ ============
** Formerly the International Growth and Income Fund The accompanying notes are an integral part of the financial statements. 1 NORTH AMERICAN FUNDS STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) - continued ================================================================================
International International Global Emerging Small/Mid Small Cap Equity Equity Growth Cap Fund Fund** Fund Fund Fund --------------- --------------- --------------- --------------- --------------- NET ASSET VALUES: - ----------------- Class A Shares Net assets at value ......................... $ 2,244,258 $ 3,985,409 $23,047,185 $ 187,057 $ 5,593,169 Shares outstanding .......................... 137,676 350,015 1,383,805 18,163 305,979 Net asset value (NAV) and redemption price per share ........................................ $ 16.30 $ 11.39 $ 16.65 $ 10.30 $ 18.28 ===== ----- ===== ===== ===== Public offering price per share (100/95.25 of NAV) On sales of $100,000 or more the offering price is reduced ............................. $ 17.11 $ 11.95 $ 17.49 $ 10.81 $ 19.19 ----- ----- ----- ----- ----- Class B Shares Net assets at value ......................... $ 7,100,545 $15,269,598 $29,358,821 $ 534,987 $17,919,685 Shares outstanding .......................... 445,353 1,354,108 1,789,551 52,505 1,006,710 Net asset value, offering price and redemption price per share .............................. $ 15.94 $ 11.28 $ 16.41 $ 10.19 $ 17.80 ----- ----- ----- ----- ----- Class C Shares Net assets at value ......................... $ 5,889,981 $ 7,123,537 $53,667,621 $ 310,593 $19,961,801 Shares outstanding .......................... 368,960 631,839 3,258,906 30,412 1,119,198 Net asset value, offering price and redemption price per share .............................. $ 15.96 $ 11.27 $ 16.47 $ 10.21 $ 17.84 ----- ----- ===== ----- -----
** Formerly the International Growth and Income Fund The accompanying notes are an integral part of the financial statements. 2 NORTH AMERICAN FUNDS STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) - continued ================================================================================
Growth Tax-Sensitive Growth and Equity- Equity Equity Income Income Balanced Fund Fund Fund Fund Fund ------------- ------------- ------------- ------------- ------------- ASSETS: - ------- Investments in securities, at value* (See accompanying Portfolio of Investments) .... $42,506,105 $9,665,734 $313,794,825 $153,472,736 $99,596,901 Cash ............................................. 457 532 161 555 330 Foreign currency (Cost: $323 in Growth Equity, $1,817 in Growth and Income, $2,617 in Equity-Income, and $84,408 in Balanced) ...... 296 -- 1,612 2,640 86,534 Unamortized organization costs ................... -- 24,041 -- -- -- Receivables: Investments sold ......................... -- 124,821 4,426,736 -- 750,250 Fund shares sold ......................... 11,419 -- 173,260 2,164 -- Dividends ................................ 13,681 4,513 321,353 268,242 105,330 Interest ................................. 230 27 917 16 555,533 Foreign tax withholding reclaims ......... 98 -- -- 150 9,347 From adviser ............................. 4,688 6,752 38,372 23,675 17,645 Other assets ..................................... 36,825 36,022 -- -- 10,267 ------------- ------------- ------------- ------------- ------------- Total assets ...................... 42,573,799 9,862,442 318,757,236 153,770,178 101,132,137 ============= ============= ============= ============= ============= LIABILITIES: - ------------ Collateral on securities loaned, at value ........ 2,501,536 -- 6,184,920 -- 3,437,871 Payables: Investments purchased .................... 14,075 146,700 5,006,136 -- 2,004,211 Fund shares redeemed ..................... 42,914 65,528 53,298 199,606 113,886 Dividend and interest withholding tax .... -- -- -- 610 6,497 Investment adviser ....................... 34,825 7,069 162,553 87,572 59,343 Custodian and transfer agent fees ........ 4,968 7,338 128,271 83,745 52,806 Distribution fee ......................... 30,124 6,982 216,824 109,666 71,054 Other accrued expenses ................... 3,004 -- 105,007 61,530 33,571 ============= ============= ============= ============= ============= Total liabilities ................. 2,631,446 233,617 11,857,009 542,729 5,779,239 ------------- ------------- ------------- ------------- ------------- NET ASSETS ....................................... $39,942,353 $9,628,825 $306,900,227 $153,227,449 $95,352,898 ============= ============= ============= ============= ============= NET ASSETS CONSIST OF: - ---------------------- Undistributed net investment income/(loss) (Note 2) ............................. ($246,472) ($48,853) ($542,659) $424,326 $483,090 Accumulated undistributed net realized gain (loss) on investments, foreign currency and forward foreign currency contracts ................... 3,830,836 (1,537,413) 9,551,585 8,633,606 6,335,406 Unrealized appreciation (depreciation) on: Investments ....................... 6,218,944 758,156 123,015,634 30,762,433 2,753,655 Foreign currency and forward foreign currency contracts ...... (29) -- (206) 20 2,348 Capital shares at par value of $.001 (Note 3) .............................. 1,996 957 10,955 8,685 8,815 Additional paid-in capital ............... 30,137,078 10,455,978 174,864,918 113,398,379 85,769,584 ------------- ------------- ------------- ------------- ------------- Net assets ........................ $39,942,353 $9,628,825 $306,900,227 $153,227,449 $95,352,898 ============= ============= ============= ============= ============= *Investments in securities, at identified cost (Note 2) ......................................... $36,287,161 $8,907,578 $190,779,191 $122,710,303 $96,843,246 ============= ============= ============= ============= =============
The accompanying notes are an integral part of the financial statements. 3 NORTH AMERICAN FUNDS STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) - continued ================================================================================
Growth Tax-Sensitive Growth and Equity- Equity Equity Income Income Balanced Fund Fund Fund Fund Fund ------------ ------------ ------------ ------------ ------------ NET ASSET VALUES: - ----------------- Class A Shares Net assets at value ......................... $ 5,071,360 $ 2,110,921 $ 52,833,822 $ 28,941,238 $ 14,848,305 Shares outstanding .......................... 249,007 217,233 1,867,629 1,634,046 1,380,233 Net asset value (NAV) and redemption price per $20.37 $9.72 $28.29 $17.71 $10.76 share ........................................ ====== ===== ====== ====== ====== Public offering price per share (100/95.25 of NAV) On sales of $100,000 or more the offering price is reduced ............................. $21.38 $10.20 $29.70 $18.59 $11.29 ====== ====== ====== ====== ====== Class B Shares Net assets at value ......................... $ 15,741,071 $ 3,944,191 $ 99,673,563 $ 37,303,637 $ 17,481,507 Shares outstanding .......................... 787,562 409,286 3,573,793 2,124,637 1,631,977 Net asset value, offering price and redemption $19.99 $9.64 $27.89 $17.56 $10.71 price per share .............................. ====== ===== ====== ====== ====== Class C Shares Net assets at value ......................... $ 19,129,922 $ 3,573,713 $154,392,842 $ 86,982,574 $ 63,023,082 Shares outstanding .......................... 958,593 371,000 5,513,158 4,925,955 5,802,362 Net asset value, offering price and redemption $19.96 $9.63 $28.00 $17.66 $10.86 price per share .............................. ====== ===== ====== ====== ======
The accompanying notes are an integral part of the financial statements. 4 NORTH AMERICAN FUNDS STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) - continued ================================================================================
Investment National U. S. Strategic Quality Municipal Government Money Income Bond Bond Securities Market Fund Fund Fund Fund Fund ------------ ------------ ------------ ------------ ------------ ASSETS: - ------- Investments in securities, at value* (Includes a repurchase agreement of $15,372,000 in the U. S. Government Securities Fund) (See accompanying Portfolio of Investments) ................................. $72,150,104 $19,582,291 $15,373,221 $87,115,035 $23,024,526 Receivable for forward foreign currency contracts to sell (Notes 2 and 7) ............ 2,744,174 -- -- -- -- Forward foreign currency contracts to buy, at value (Cost: $1,945,594 in Strategic Income) ...................................... 1,900,219 -- -- -- -- Cash .............................................. 431 -- 50,297 972 1,271 Foreign currency (Cost: $64,886 in Strategic Income) ...................................... 65,536 -- -- -- -- Receivables: Investments sold .......................... 25,913 -- -- 70,285 -- Fund shares sold .......................... 25,000 -- -- 35,049 -- Dividends ................................. 867 -- -- -- -- Interest .................................. 1,397,417 292,008 236,414 450,363 34,279 From adviser .............................. 3,708 6,227 5,515 14,044 5,339 Other assets ...................................... 43,979 38,830 33,997 27,145 57,266 ------------ ------------ ------------ ------------ ------------ Total assets ....................... 78,357,348 19,919,356 15,699,444 87,712,893 23,122,681 ------------ ------------ ------------ ------------ ------------ LIABILITIES: - ------------ Forward foreign currency contracts to sell, at value (Cost: $2,744,174 in Strategic Income) (Notes 2 and 7) ................................ 2,585,354 -- -- -- -- Collateral on securities loaned, at value ......... 4,299,280 2,821,919 -- -- -- Payables: Forward foreign currency contracts to buy (Notes 2 and 7) ................... 1,945,594 -- -- -- -- Investments purchased ..................... 864,950 81,235 -- 17,328,440 -- Fund shares redeemed ...................... 181,690 34,994 -- 84,490 -- Dividends ................................. 294,539 105,220 40,829 337,212 85,010 Dividend and interest withholding tax ..... 1,461 8 -- -- -- Investment adviser ........................ 54,942 8,473 7,774 35,081 6,504 Custodian and transfer agent fees ......... 39,652 6,375 10,980 42,086 58 Distribution fee .......................... 50,946 10,659 8,214 33,614 -- Due to custodian .......................... -- 20,667 -- -- -- Other accrued expenses .................... 21,264 60 -- 22,809 207 ------------ ------------ ------------ ------------ ------------ Total liabilities .................. 10,339,672 3,089,610 67,797 17,883,732 91,779 ------------ ------------ ------------ ------------ ------------ NET ASSETS ........................................ $68,017,676 $16,829,746 $15,631,647 $69,829,161 $23,030,902 ============ ============ ============ ============ ============ NET ASSETS CONSIST OF: - ---------------------- Undistributed net investment income/(loss) (Note 2) .................. $199,420 ($6,199) ($263) ($389,248) $2,054 Accumulated undistributed net realized gain (loss) on investments, foreign currency and forward foreign currency contracts ...................... (2,435,467) (244,835) (16,948) (824,933) (2,054) Unrealized appreciation (depreciation) on: Investments ............................. (1,618,545) (102,028) 805,947 (270,956) -- Foreign currency and forward foreign currency contracts .................... 103,941 -- -- -- -- Capital shares at par value of $.001 (Note 3) .............................. 7,510 1,621 1,549 7,080 23,031 Additional paid-in capital ................ 71,760,817 17,181,187 14,841,362 71,307,218 23,007,871 ------------ ------------ ------------ ------------ ------------ Net assets ......................... $68,017,676 $16,829,746 $15,631,647 $69,829,161 $23,030,902 ============ ============ ============ ============ ============ *Investments in securities, at identified cost (Note 2) ....................................... $73,768,649 $19,684,319 $14,567,274 $87,385,991 $23,024,526 ============ ============ ============ ============ ============
The accompanying notes are an integral part of the financial statements. 5 NORTH AMERICAN FUNDS STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 1999 - (Unaudited) - continued ================================================================================
Investment National U. S. Strategic Quality Municipal Government Money Income Bond Bond Securities Market Fund Fund Fund Fund Fund --------------- --------------- --------------- --------------- --------------- NET ASSET VALUES: - ---------------- Class A Shares Net assets at value ......................... $11,443,233 $ 6,515,496 $ 5,563,013 $44,095,737 $10,281,815 Shares outstanding .......................... 1,264,846 627,580 551,439 4,469,625 10,281,103 Net asset value (NAV) and redemption price per share ........................................ $9.05 $10.38 $10.09 $9.87 $1.00 ----- ------ ------ ----- ----- Public offering price per share (100/95.25 of NAV) On sales of $100,000 or more the offering price is reduced ............................. $9.50 $10.90 $10.59 $10.36 ----- ------ ------ ------ Class B Shares Net assets at value ......................... $27,340,554 $ 4,652,915 $ 5,203,934 $13,353,599 $ 4,973,346 Shares outstanding .......................... 3,018,504 448,159 515,927 1,354,400 4,973,117 Net asset value, offering price and redemption price per share .............................. $9.06 $10.38 $10.09 $9.86 $1.00 ----- ------ ------ ----- ----- Class C Shares Net assets at value ......................... $29,233,889 $ 5,661,335 $ 4,864,700 $12,379,825 $ 7,775,741 Shares outstanding .......................... 3,227,413 545,399 482,293 1,255,660 7,775,137 Net asset value, offering price and redemption price per share .............................. $9.06 $10.38 $10.09 $9.86 $1.00 ----- ------ ------ ----- -----
The accompanying notes are an integral part of the financial statements. 6 NORTH AMERICAN FUNDS STATEMENTS OF OPERATIONS - FOR THE SIX MONTHS ENDED APRIL 30, 1999 (Unaudited) - --------------------------------------------------------------------------------
International International Global Emerging Small/Mid Small Cap Equity Equity Growth Cap Fund Fund* Fund Fund Fund ------------- ------------- ------------- ------------- ------------- INVESTMENT INCOME: - ------------------ Interest ................................... $34,056 $22,009 $67,032 $1,307 $70,961 Dividends (Net of $2,900, $22,460 and $47,396 withholding tax in the International Small Cap, International Equity and Global Equity Funds, respectively) ............................ 29,126 199,516 936,794 455 41,540 ------------- ------------- ------------- ------------- ------------- Total income ........................ 63,182 221,525 1,003,826 1,762 112,501 ------------- ------------- ------------- ------------- ------------- EXPENSES: - --------- Distribution for Class A ................... 3,840 6,836 53,151 349 9,708 Distribution for Class B ................... 35,667 72,626 149,195 2,180 81,049 Distribution for Class C ................... 30,314 37,660 279,110 1,320 92,153 Investment adviser fee (Note 5) ............ 80,799 116,838 522,149 4,273 185,869 Custodian fee .............................. 17,852 17,852 73,068 17,852 17,852 Transfer agent fee ......................... 12,990 21,816 99,195 717 32,649 Accounting/administration .................. 11,340 19,119 86,928 627 28,711 Audit and legal fees ....................... 3,229 5,439 24,712 181 8,218 Amortization of organization costs ......... -- -- -- 3,291 -- Miscellaneous .............................. 6,230 11,042 55,981 536 14,619 ------------- ------------- ------------- ------------- ------------- Expenses before reimbursement by investment adviser ....................... 202,261 309,228 1,343,489 31,326 470,828 Reimbursement of expenses by investment adviser (Note 5) ......................... 12,988 9,462 36,940 21,397 21,446 ------------- ------------- ------------- ------------- ------------- Net expenses ................ 189,273 299,766 1,306,549 9,929 449,382 ------------- ------------- ------------- ------------- ------------- Net investment income/(loss) (126,091) (78,241) (302,723) (8,167) (336,881) ------------- ------------- ------------- ------------- ------------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS - ------------------------------------------- AND FOREIGN CURRENCY: --------------------- Net realized gain (loss) on: Investment transactions ................. 257,457 1,510,575 7,856,946 (34,356) 7,195,849 Foreign currency and forward foreign currency contracts .................... (10,377) (39,298) (236,615) -- -- Change in unrealized appreciation (depreciation) on: Investments ............................. 2,278,788 2,189,932 1,629,904 162,773 1,381,520 Translation of foreign currency and forward foreign currency contracts .... (1,028) 283,156 389,957 -- -- ------------- ------------- ------------- ------------- ------------- Net gain on investments and foreign currency....... 2,524,840 3,944,365 9,640,192 128,417 8,577,369 ------------- ------------- ------------- ------------- ------------- Net increase in net assets resulting from operations .................................... $2,398,749 $3,866,124 $9,337,469 $120,250 $8,240,488 ============= ============= ============= ============= =============
* Formerly the International Growth and Income Fund The accompanying notes are an integral part of the financial statements. 7 NORTH AMERICAN FUNDS STATEMENTS OF OPERATIONS - FOR THE SIX MONTHS ENDED APRIL 30, 1999 (Unaudited) - --------------------------------------------------------------------------------
Growth Tax-Sensitive Growth and Equity- Equity Equity Income Income Balanced Fund Fund Fund Fund Fund --------------- --------------- --------------- --------------- --------------- INVESTMENT INCOME: - ----------------- Interest .................................... $ 39,967 $ 5,127 $ 102,802 139,862 $ 1,202,470 Dividends (Net of $462, $520, $2,550, $11,266 and $11,790 withholding tax in the Growth Equity, Tax-Sensitive Equity, Growth and Income, Equity-Income and Balanced Funds, respectively) ............. 92,598 57,428 1,911,608 2,233,090 435,696 ------------ ------------ ------------ ------------ ------------ Total income ......................... 132,565 62,555 2,014,410 2,372,952 1,638,166 ------------ ------------ ------------ ------------ ------------ EXPENSES: - -------- Distribution for Class A .................... 8,050 7,186 83,623 61,691 25,462 Distribution for Class B .................... 68,950 17,393 436,102 191,044 92,245 Distribution for Class C .................... 79,323 16,870 687,883 459,490 321,263 Investment adviser fee (Note 5) ............. 154,146 46,574 913,805 597,269 364,934 Custodian fee ............................... 17,852 17,852 65,277 43,832 30,121 Transfer agent fee .......................... 27,472 9,139 222,047 140,996 82,039 Accounting/administration ................... 24,299 7,982 195,553 123,327 71,684 Audit and legal fees ........................ 6,973 2,272 55,982 35,006 20,396 Amortization of organization costs .......... -- 3,278 -- -- -- Miscellaneous ............................... 12,370 5,726 97,317 62,034 36,237 ============ ============ ============ ============ ============ Expenses before reimbursement by investment adviser......................... 399,435 134,272 2,757,589 1,714,689 1,044,381 Reimbursement of expenses by investment adviser (Note 5)........................... 20,399 22,863 200,520 126,489 99,145 ------------ ------------ ------------ ------------ ------------ Net expenses ................. 379,036 111,409 2,557,069 1,588,200 945,236 ------------ ------------ ------------ ------------ ------------ Net investment income/(loss) . (246,471) (48,854) (542,659) 784,752 692,930 ------------ ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS - ------------------------------------------- AND FOREIGN CURRENCY: -------------------- Net realized gain (loss) on: Investment transactions .................. 3,829,418 (782,448) 9,913,382 8,846,901 6,794,018 Foreign currency and forward foreign currency contracts ..................... (2,550) -- -- (11,953) (40,845) Change in unrealized appreciation (depreciation) on: Investments .............................. 2,762,281 1,541,034 41,400,777 3,678,300 (4,739,367) Translation of foreign currency and forward foreign currency contracts ..... (34) -- (41) 121 1,561 ------------ ------------ ------------ ------------ ------------ Net gain on investments and foreign currency ....... 6,589,115 758,586 51,314,118 12,513,369 2,015,367 ============ ============ ============ ============ ============ Net increase in net assets resulting from operations ..................................... $ 6,342,644 $ 709,732 $ 50,771,459 $ 13,298,121 $ 2,708,297 ============ ============ ============ ============ ============
The accompanying notes are an integral part of the financial statements. 8 NORTH AMERICAN FUNDS STATEMENTS OF OPERATIONS - FOR THE SIX MONTHS ENDED APRIL 30, 1999 (Unaudited) - --------------------------------------------------------------------------------
Investment National U. S. Strategic Quality Municipal Government Money Income Bond Bond Securities Market Fund Fund Fund Fund Fund ----------- ----------- ----------- ----------- ----------- INVESTMENT INCOME: - ------------------ Interest (Net of $6,502 withholding tax in the Strategic Income Funds) .............................. $3,500,168 $643,875 $428,583 $2,484,855 $547,672 Dividends ............................................... -- 2,031 -- -- -- ----------- ----------- ----------- ----------- ----------- Total income ..................................... 3,500,168 645,906 428,583 2,484,855 547,672 ----------- ----------- ----------- ----------- ----------- EXPENSES: - --------- Distribution for Class A ................................ 24,156 11,445 4,394 83,006 -- Distribution for Class B ................................ 146,777 24,510 26,098 70,282 -- Distribution for Class C ................................ 158,554 28,758 24,520 62,382 -- Investment adviser fee (Note 5) ......................... 274,441 51,542 47,380 221,895 22,450 Custodian fee ........................................... 49,277 17,852 17,852 23,833 17,852 Transfer agent fee ...................................... 64,035 14,454 13,411 63,232 19,320 Accounting/administration ............................... 55,715 12,628 11,674 55,063 16,534 Audit and legal fees .................................... 15,801 3,601 3,322 15,641 4,707 Miscellaneous ........................................... 27,653 6,450 5,786 27,292 8,349 ----------- ----------- ----------- ----------- ----------- Expenses before reimbursement by investment adviser ..... 816,409 171,240 154,437 622,626 89,212 Reimbursement of expenses by investment adviser (Note 5) .............................................. 56,376 29,218 32,393 75,037 33,087 ----------- ----------- ----------- ----------- ----------- Net expenses ............................... 760,033 142,022 122,044 547,589 56,125 ----------- ----------- ----------- ----------- ----------- Net investment income ...................... 2,740,135 503,884 306,539 1,937,266 491,547 ----------- ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS - ------------------------------------------- AND FOREIGN CURRENCY: --------------------- Net realized gain (loss) on: Investment transactions .............................. (1,500,859) 125,329 7,209 237,823 804 Foreign currency and forward foreign currency contracts .......................................... (240,622) -- -- -- -- Change in unrealized appreciation (depreciation) on: Investments .......................................... 2,084,162 (522,466) (218,249) (1,651,375) -- Translation of foreign currency and forward foreign currency contracts ................. 363,658 -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net gain on investments and foreign currency ... 706,339 (397,137) (211,040) (1,413,552) 804 ----------- ----------- ----------- ----------- ----------- Net increase in net assets resulting from operations ......... $3,446,474 $106,747 $95,499 $523,714 $492,351 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of the financial statements. 9 NORTH AMERICAN FUNDS STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
International Equity Fund (formerly the International International Growth Small Cap Fund and Income Fund) Global Equity Fund ------------------------------ ------------------------------ --------------------------- Six Six Six Months Months Months Ended Year Ended Year Ended Year 4/30/99 Ended 4/30/99 Ended 4/30/99 Ended (Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98 -------------- -------------- -------------- -------------- -------------- ------------ OPERATIONS: Net investment income (loss) ........ ($126,091) ($118,410) ($78,241) ($25,047) ($302,723) ($509,955) Net realized gain (loss) on: Investment transactions .......... 257,457 (75,711) 1,510,575 33,515 7,856,946 9,400,371 Foreign currency and forward foreign currency contracts ...................... (10,377) (22,378) (39,298) 129,326 (236,615) 845,669 Change in unrealized appreciation (depreciation) on: Investments ...................... 2,278,788 236,882 2,189,932 405,513 1,629,904 975,938 Foreign currency and forward foreign currency contracts .... (1,028) 3,020 283,156 (374,342) 389,957 (700,564) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations .... 2,398,749 23,403 3,866,124 168,965 9,337,469 10,011,459 DISTRIBUTIONS FROM : - -------------------- Net investment income Class A ...................... -- -- -- (32,570) -- (417,000) Class B ...................... -- -- -- (49,275) -- (215,336) Class C ...................... -- -- -- (25,937) -- (405,867) Net realized gains on investments and foreign currency transactions Class A ...................... -- -- (12,093) (387,315) (2,303,340) (1,961,256) Class B ...................... -- -- (44,314) (1,343,452) (2,219,820) (2,005,883) Class C ...................... -- -- (25,387) (715,494) (4,228,655) (3,781,969) In excess of net investment income Class A ...................... -- -- -- (21,898) -- -- Class B ...................... -- -- -- (33,130) -- -- Class C ...................... -- -- -- (17,438) -- -- Increase (decrease) in net assets from capital share transactions (Note 3) . (2,617,494) (2,188,345) (3,164,876) (1,038,721) (13,628,223) (6,146,407) ------------- ------------- ------------- ------------- ------------- ------------- Increase (decrease) in net assets .... (218,745) (2,164,942) 619,454 (3,496,265) (13,042,569) (4,922,259) Net assets at beginning of period .... 15,453,529 17,618,471 25,759,090 29,255,355 119,116,196 124,038,455 ------------- ------------- ------------- ------------- ------------- ------------- Net assets at end of period .......... $ 15,234,784 $ 15,453,529 26,378,544 25,759,090 $ 106,073,627 $ 119,116,196 ============= ============= ============= ============= ============= ============= Undistributed net investment income (loss) ....................... ($ 126,091) -- $ 87,156 $ 165,398 ($ 76,123) $ 226,601 ------------- ------------- ------------- ------------- ------------- ------------- Emerging Growth Fund ------------------------------- Six Months Ended 01/06/98* 4/30/99 to (Unaudited) 10/31/98 ---------------- ------------- OPERATIONS: - ----------- Net investment income (loss) ........ ($8,167) ($4,740) Net realized gain (loss) on: Investment transactions .......... (34,356) (39,152) Foreign currency and forward foreign currency contracts ...................... -- -- Change in unrealized appreciation (depreciation) on: Investments ...................... 162,773 (61,247) Foreign currency and forward foreign currency contracts .... -- -- ----------- ----------- Net increase (decrease) in net assets resulting from operations .... $ 120,250 ($ 105,139) DISTRIBUTIONS FROM : - -------------------- Net investment income Class A ...................... -- -- Class B ...................... -- -- Class C ...................... -- -- Net realized gains on investments and foreign currency transactions Class A ...................... -- -- Class B ...................... -- -- Class C ...................... -- -- In excess of net investment income Class A ...................... -- -- Class B ...................... -- -- Class C ...................... -- -- Increase (decrease) in net assets from capital share transactions (Note 3) . 265,203 752,323 ----------- ----------- Increase (decrease) in net assets .... 385,453 647,184 Net assets at beginning of period .... 647,184 0 ----------- ----------- Net assets at end of period .......... $ 1,032,637 $ 647,184 =========== =========== Undistributed net investment income (loss) ....................... ($ 8,166) -- ----------- -----------
- --------------------------------- * Commencement of operations The accompanying notes are an integral part of the financial statements. 10 NORTH AMERICAN FUNDS STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Tax-Sensitive Small/Mid Cap Fund Growth Equity Fund Equity Fund --------------------------- --------------------------- --------------------------- Six Six Six Months Months Months Ended Year Ended Year Ended 01/06/98* 4/30/99 Ended 4/30/99 Ended 4/30/99 to (Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98 ------------ ------------ ------------ ------------ ------------ ------------ OPERATIONS: - ----------- Net investment income (loss) .......... ($336,881) ($494,630) ($246,471) ($278,985) ($48,854) ($23,575) Net realized gain (loss) on: Investment transactions .............. 7,195,849 3,617,101 3,829,418 2,221,648 (782,448) (754,965) Foreign currency and forward foreign currency contracts .......... -- -- (2,550) 679 -- -- Change in unrealized appreciation (depreciation) on: Investments ........................ 1,381,520 (1,868,388) 2,762,281 1,275,786 1,541,034 (782,878) Foreign currency and forward foreign currency contracts ................ -- -- (34) (269) -- -- ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ............. 8,240,488 1,254,083 6,342,644 3,218,859 709,732 (1,561,418) DISTRIBUTIONS FROM : - -------------------- Net realized gains on investments and foreign currency transactions Class A ........................ (460,517) (73,545) (265,199) (262,983) -- -- Class B ........................ (1,326,329) (196,356) (781,780) (812,961) -- -- Class C ........................ (1,510,893) (216,341) (851,543) (1,091,675) -- -- In excess of net investment income Class A ........................ -- -- -- -- -- -- Class B ........................ -- -- -- -- -- -- Class C ........................ -- -- -- -- -- -- Increase (decrease) in net assets from capital share transactions (Note 3) .. 3,524,286 4,796,743 6,954,869 2,632,785 (1,415,281) 11,895,792 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets ............................... 8,467,035 5,564,584 11,398,991 3,684,025 (705,549) 10,334,374 Net assets at beginning of period ................................. 35,007,620 29,443,036 28,543,362 24,859,337 10,334,374 -- ------------ ------------ ------------ ------------ ------------ ------------ Net assets at end of period ................................. $ 43,474,655 $ 35,007,620 $ 39,942,353 $ 28,543,362 $ 9,628,825 $ 10,334,374 ============ ============ ============ ============ ============ ============ Undistributed net investment income (loss) .......................... ($ 336,881) ($ 494,630) ($ 246,472) ($ 191,333) ($ 48,853) -- ------------ ------------ ------------ ------------ ------------ ------------ Growth and Income Fund -------------------------------- Six Months Ended Year 4/30/99 Ended (Unaudited) 10/31/98 ------------- ------------- OPERATIONS: - ----------- Net investment income (loss) .......... ($542,659) ($433,878) Net realized gain (loss) on: Investment transactions .............. 9,913,382 9,720,012 Foreign currency and forward foreign currency contracts .......... -- -- Change in unrealized appreciation (depreciation) on: Investments ........................ 41,400,777 28,812,377 Foreign currency and forward foreign currency contracts ................ (41) 53 ------------- ------------- Net increase (decrease) in net assets resulting from operations ............. 50,771,459 38,098,564 DISTRIBUTIONS FROM : - -------------------- Net realized gains on investments and foreign currency transactions Class A ........................ (1,712,913) (2,741,357) Class B ........................ (3,082,778) (4,507,021) Class C ........................ (4,840,383) (7,696,358) In excess of net investment income Class A ........................ -- (45,238) Class B ........................ -- -- Class C ........................ -- -- Increase (decrease) in net assets from capital share transactions (Note 3) .. 24,880,725 30,468,074 ------------- ------------- Increase (decrease) in net assets ............................... 66,016,110 53,576,664 Net assets at beginning of period ................................. 240,884,117 187,307,453 ------------- ------------- Net assets at end of period ................................. $ 306,900,227 $ 240,884,117 ============= ============= Undistributed net investment income (loss) .......................... ($ 542,659) -- ------------- -------------
- --------------------------------- * Commencement of operations The accompanying notes are an integral part of the financial statements. 11 NORTH AMERICAN FUNDS STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Equity-Income Fund Balanced Fund Strategic Income Fund ----------------------------- ----------------------------- ----------------------------- Six Six Six Months Months Months Ended Year Ended Year Ended Year 4/30/99 Ended 4/30/99 Ended 4/30/99 Ended (Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98 ------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS: - ----------- Net investment income (loss) ..... $784,752 $1,911,306 $692,930 $1,548,319 $2,740,135 $5,297,511 Net realized gain (loss) on: Investment transactions ......... 8,846,901 11,356,830 6,794,018 6,740,853 (1,500,859) (114,474) Foreign currency and forward foreign currency contracts ..... (11,953) (959) (40,845) (76,080) (240,622) 174,226 Change in unrealized appreciation (depreciation) on: Investments ................... 3,678,300 3,232,000 (4,739,367) 2,811,660 2,308,005 (5,320,040) Foreign currency and forward foreign currency contracts ... 121 (788) 1,561 693 363,658 (218,242) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations ...................... 13,298,121 16,498,389 2,708,297 11,025,445 3,670,317 (181,019) DISTRIBUTIONS FROM : - -------------------- Net investment income Class A ................... (602,776) (701,503) (284,543) (317,345) (540,391) (1,142,439) Class B ................... (372,141) (442,368) (243,851) (320,086) (1,055,546) (2,118,644) Class C ................... (917,992) (1,133,438) (834,503) (1,278,949) (1,140,956) (2,258,371) Net realized gains on investments and foreign currency transactions Class A ................... (2,331,204) (2,593,550) (1,061,187) (2,023,888) (93,964) (219,321) Class B ................... (2,468,438) (2,589,634) (1,381,136) (2,767,331) (188,949) (478,774) Class C ................... (6,050,850) (6,612,227) (4,691,171) (11,012,231) (202,495) (472,034) Increase (decrease) in net assets from capital share transactions (Note 3) ......................... (18,928,826) 2,002,286 2,748,334 7,392,323 (10,473,844) 1,717,355 ------------- ------------- ------------- ------------- ------------- ------------- Increase (decrease) in net assets ........................... (18,374,106) 4,427,955 (3,039,760) 697,938 (10,025,828) (5,153,247) Net assets at beginning of period ........................... 171,601,558 167,173,603 98,392,658 97,694,720 78,043,504 83,196,751 ------------- ------------- ------------- ------------- ------------- ------------- Net assets at end of period ........................... $153,227,452 $171,601,558 $95,352,898 $98,392,658 $68,017,676 $78,043,504 ============= ============= ============= ============= ============= ============= Undistributed net investment income (loss) .................... $424,326 $1,532,483 $483,090 $1,153,058 $199,420 $196,179 ------------- ------------- ------------- ------------- ------------- ------------- Investment Quality Bond Fund ------------------------------ Six Months Ended Year 4/30/99 Ended (Unaudited) 10/31/98 ------------ ------------ OPERATIONS: - ----------- Net investment income (loss) ....... $503,884 $1,040,983 Net realized gain (loss) on: Investment transactions ........... 125,329 161,325 Foreign currency and forward foreign currency contracts ....... -- -- Change in unrealized appreciation (depreciation) on: Investments ..................... (522,466) 12,137 Foreign currency and forward foreign currency contracts ..... -- -- ------------ ------------ Net increase (decrease) in net assets resulting from operations ......................... 106,747 1,214,445 DISTRIBUTIONS FROM : - -------------------- Net investment income Class A ..................... (210,050) (446,629) Class B ..................... (143,468) (276,805) Class C ..................... (168,202) (312,476) Net realized gains on investments and foreign currency transactions . Class A ..................... -- -- Class B ..................... -- -- Class C ..................... -- -- Increase (decrease) in net assets from capital share transactions (Note 3) .......................... 138,489 (903,890) ------------ ------------ Increase (decrease) in net assets ............................. (276,484) (725,355) Net assets at beginning of period ............................. 17,106,230 17,831,585 ------------ ------------ Net assets at end of period ............................. $16,829,746 $17,106,230 ============ ============ Undistributed net investment income (loss) ...................... ($6,199) $11,637 ------------ ------------
The accompanying notes are an integral part of the financial statements. 12 NORTH AMERICAN FUNDS STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
National Municipal U. S. Government Bond Fund Securities Fund Money Market Fund ------------------------ ---------------------- ----------------------- Six Months Six Months Six Months Ended Year Ended Year Ended Year 4/30/99 Ended 4/30/99 Ended 4/30/99 Ended (Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98 ----------- -------- ----------- -------- ----------- -------- OPERATIONS: - ----------- Net investment income (loss) ...... $306,539 $691,317 $1,937,266 $4,323,483 $491,547 $975,269 Net realized gain (loss) on: Investment transactions ........... 7,209 190,227 237,823 591,717 804 -- Change in unrealized appreciation (depreciation) on: Investments ..................... (218,249) 50,547 (1,651,375) 621,573 -- -- ------------ ----------- ------------- ----------- ------------ ------------ Net increase (decrease) in net assets resulting from operations .......................... 95,499 932,091 523,714 5,536,773 492,351 975,269 DISTRIBUTIONS FROM : - -------------------- Net investment income Class A ...................... (125,473) (277,166) (1,395,536) (2,632,290) (209,503) (452,709) Class B ...................... (93,350) (215,659) (375,622) (735,957) (111,905) (164,474) Class C ...................... (87,717) (198,492) (326,105) (614,899) (170,943) (358,086) In excess of net investment income Class A ...................... -- -- -- (314,160) -- -- Class B ...................... -- -- -- (87,836) -- -- Class C ...................... -- -- -- (73,388) -- -- Increase (decrease) in net assets from capital share transactions (Note 3) . (397,042) (2,184,716) (8,779,671) (5,506,261) (1,420,310) 2,523,350 ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets ............................... (608,083) (1,943,942) (10,353,220) (4,428,018) (1,420,310) 2,523,350 Net assets at beginning of period ............................... 16,239,730 18,183,672 80,182,381 84,610,399 24,451,212 21,927,862 ------------ ------------ ------------ ------------ ------------ ------------ Net assets at end of period ............................... $15,631,647 $16,239,730 $69,829,161 $80,182,381 $23,030,902 $24,451,212 ============ ============ ============ ============ ============ ============ Undistributed net investment income (loss) ........................ ($263) ($263) ($389,248) ($229,251) $2,054 $2,858 ------------ ------------ ------------ ------------ ------------ ------------
The accompanying notes are an integral part of the financial statements. 13 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
International Small Cap Fund -------------------------------------------------------- Class A -------------------------------------------------------- Six Months Ended Year Year 3/04/96* 4/30/99 ** Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 - -------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $13.91 $13.86 $13.43 $12.50 - -------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.08) (0.02) (0.03) 0.05 Net realized and unrealized gain/(loss) on investments and foreign currency 2.47 0.07 0.46 0.88 --------------------------------------------------------- Total from investment operations 2.39 0.05 0.43 0.93 - -------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $16.30 $13.91 $13.86 $13.43 - -------------------------------------------------------------------------------------------------------------- Total Return 17.18%+ 0.36% 3.20% 7.44%+ ============================================================================================================== Ratios/Supplemental Data - -------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $2,244 $2,173 $3,225 $2,120 - -------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.90%# 1.90% 1.90% 1.90%# - -------------------------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (1.08%)# (0.12%) (0.19%) (0.50%)# - -------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 23%+ 54% 75% 67%# - -------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.07%# 2.23% 2.46% 3.07%# - -------------------------------------------------------------------------------------------------------------- International Small Cap Fund -------------------------------------------------------- Class B -------------------------------------------------------- Six Months Ended Year Year 3/04/96* 4/30/99 ** Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 - -------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $13.66 $13.71 $13.37 $12.50 - -------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.13) (0.12) (0.11) (0.01) Net realized and unrealized gain/(loss) on investments and foreign currency 2.41 0.07 0.45 0.88 --------------------------------------------------------- Total from investment operations 2.28 (0.05) 0.34 0.87 - -------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $15.94 $13.66 $13.71 $13.37 - -------------------------------------------------------------------------------------------------------------- Total Return 16.95%+ (0.36%) 2.54% 6.96%+ ============================================================================================================== Ratios/Supplemental Data - -------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $7,101 $7,073 $7,369 $5,068 - -------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.55%# 2.55% 2.55% 2.55%# - -------------------------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (1.73)# (0.79%) (0.84%) (0.15%)# - -------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 23%+ 54% 75% 67%# - -------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.72%# 2.88% 2.98% 3.27%# - -------------------------------------------------------------------------------------------------------------- ==============================================================================================================
International Small Cap Fund -------------------------------------------------------- Class C -------------------------------------------------------- Six Months Ended Year Year 3/04/96* 4/30/99 ** Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 - -------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $13.66 $13.71 $13.37 $12.50 - -------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.13) (0.12) (0.11) (0.01) Net realized and unrealized gain/(loss) on investments and foreign currency 2.43 0.07 0.45 0.88 --------------------------------------------------------- Total from investment operations 2.30 (0.05) 0.34 0.87 - -------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $15.96 $13.66 $13.71 $13.37 - -------------------------------------------------------------------------------------------------------------- Total Return 16.84%+ (0.36%) 2.54% 6.96%+ ============================================================================================================== Ratios/Supplemental Data - -------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $5,890 $6,195 $7,025 $5,517 - -------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.55%# 2.55% 2.55% 2.55%# - -------------------------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (1.73)# (0.78%) (0.84%) (0.15%)# - --------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 23%+ 54% 75% 67%# - --------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.72%# 2.88% 2.96% 3.25%# - ---------------------------------------------------------------------------------------------------------------
* 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. 14 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - -------------------------------------------------------------------------------- International Equity Fund (formerly the International Growth and Income Fund) ------------------------------------------------------------------------- Class A ------------------------------------------------------------------------- Six Months Ended Year Year Year 1/09/95* 4/30/99** Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95 - ------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $9.83 $10.81 $11.35 $10.11 $10.00 - ------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.00 0.03 0.06 0.09 0.06 Net realized and unrealized gain/(loss) on investments and foreign currency 1.59 0.02 0.35 1.33 0.08 ------------------------------------------------------------------------- Total from investment operations 1.59 0.05 0.41 1.42 0.14 ------------------------------------------------------------------------- Distributions Dividends from net investment income ------ (0.13) (0.19) (0.08) (0.03) Distributions from realized capital gains (0.03) (0.90) (0.76) (0.10) ------ ------------------------------------------------------------------------- Total distributions (0.03) (1.03) (0.95) (0.18) (0.03) - ------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $11.39 $9.83 $10.81 $11.35 $10.11 - ------------------------------------------------------------------------------------------------------------------------ Total Return 16.22% + 0.67% 3.55% 14.25% 1.37% + ======================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $3,985 $3,769 $4,461 $4,732 $6,897 - ------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.75% # 1.75% 1.75% 1.75% 1.75% # - ------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (0.05) # 0.44% 0.97% 0.84% 0.70% # - ------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 105% + 173% 146% 170% 69% - ------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 1.83% # 1.87% 1.96% 1.97% 2.18% # - ------------------------------------------------------------------------------------------------------------------------
International Equity Fund (formerly the International Growth and Income Fund) ------------------------------------------------------------------------- Class B ------------------------------------------------------------------------- Six Months Ended Year Year Year 1/09/95* 4/30/99** Ended Ended Ended to (Unaudited) 10/31/98 10/31/97** 10/31/96** 10/31/95 - ------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $9.77 $10.75 $11.30 $10.10 $10.00 - ------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.03) (0.02) 0.03 0.06 0.01 Net realized and unrealized gain/(loss) on investments and foreign currency 1.57 0.00 0.31 1.30 0.12 ------------------------------------------------------------------------- Total from investment operations 1.54 (0.02) 0.34 1.36 0.13 ------------------------------------------------------------------------- Distributions Dividends from net investment income ------ (0.06) (0.13) (0.05) (0.03) Distributions from realized capital gains (0.03) (0.90) (0.76) (0.11) ------ ------------------------------------------------------------------------- Total distributions (0.03) (0.96) (0.89) (0.16) (0.03) - ------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $11.28 $9.77 $10.75 $11.30 $10.10 - ------------------------------------------------------------------------------------------------------------------------ Total Return 15.81% + (0.03%) 2.92% 13.58% 1.28% + ======================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $15,270 $14,030 $16,334 $15,217 $8,421 - ------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 2.40% # 2.40% 2.40% 2.40% 2.40% # - ------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (0.68%) # (0.18%) 0.32% 0.57% 0.15% # - ------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 105% + 173% 146% 170% 69% - ------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.48% # 2.52% 2.54% 2.60% 2.93% # - ------------------------------------------------------------------------------------------------------------------------
* 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. 15 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
International Equity Fund (formerly the International Growth and Income Fund) ---------------------------------------------------------------------------------- Class C ---------------------------------------------------------------------------------- Six Months Ended Year Year Year 1/09/95* 4/30/99** Ended Ended Ended to (Unaudited) 10/31/98 10/31/97** 10/31/96** 10/31/95 - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $ 9.77 $10.76 $11.31 $10.10 $10.00 - ---------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.03) (0.02) 0.03 0.06 0.01 Net realized and unrealized gain/(loss) on investments and foreign currency 1.56 (0.01) 0.31 1.30 0.12 -------------------------------------------------------------------------- Total from investment operations 1.53 (0.03) 0.34 1.36 0.13 -------------------------------------------------------------------------- Distributions Dividends from net investment income -- (0.06) (0.13) (0.05) (0.03) Distributions from realized capital gains (0.03) (0.90) (0.76) (0.10) -- -------------------------------------------------------------------------- Total distributions (0.03) (0.96) (0.89) (0.15) (0.03) - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $11.27 $9.77 $10.76 $11.31 $10.10 - ---------------------------------------------------------------------------------------------------------------------------------- Total Return 15.71%+ (0.13%) 2.91% 13.63% 1.28%+ ================================================================================================================================== Ratios/Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $7,124 $7,960 $8,460 $9,076 $6,324 - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.40%# 2.40% 2.40% 2.40% 2.40%# - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets (0.%)# (0.19%) 0.32% 0.51% 0.13%# - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 105%+ 173% 146% 170% 69% - ---------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.48%# 2.52% 2.57% 2.60% 2.93%# - ---------------------------------------------------------------------------------------------------------------------------------- ====================================================================================================================================
Global Equity Fund ---------------------------------------------------------------------------------- Class A ---------------------------------------------------------------------------------- Six Months Ended Year Year Year 1/09/95* 4/01/94* 4/30/99** Ended Ended Ended to to (Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $16.43 $16.32 $14.50 $13.84 $14.82 $14.13 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) -- 0.02 0.06 (0.04) -- (0.01) Net realized and unrealized gain/(loss) on investments and foreign currency 1.43 1.34 3.45 0.91 (0.54) 0.70 ----------------------------------------------------------------------------------- Total from investment operations 1.43 1.36 3.51 0.87 (0.54) 0.69 ----------------------------------------------------------------------------------- Distributions Dividends from net investment income -- (0.22) (0.05) (0.21) -- -- Distributions from realized capital gains (1.21) (1.03) (1.64) -- (0.44) -- ----------------------------------------------------------------------------------- Total distributions (1.21) (1.25) (1.69) (0.21) (0.44) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $16.65 $16.43 $16.32 $14.50 $13.84 $14.82 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 9.07%+ 8.90% 26.10% 6.33% (3.52%) 9.16%@ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $23,047 $31,055 $30,960 $25,924 $23,894 $18,152 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.75%# 1.75% 1.75% 1.75% 1.75% 1.75%# - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 0.00%# 0.09% 0.33% (0.30%) 0.03% (0.12%)# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 17%+ 20% 28% 165% 57% 54% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 1.83%# 1.75% 1.81% 1.83% 1.92% 1.97%# - ------------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized ** Net investment income per share has been calculated using the average share method @ Historical Total Return is the one-year performance return which includes Class C performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 16 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Global Equity Fund ---------------------------------------------------------------------------------------- Class B ---------------------------------------------------------------------------------------- Six Months Ended 4/30/99 Year Year Year Year 4/01/94* ** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97** 10/31/96** 10/31/95** 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $16.24 $16.14 $14.36 $13.73 $14.79 $14.13 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.06) (0.11) (0.05) (0.14) (0.09) (0.03) Net realized and unrealized gain/(loss) on investments and foreign currency 1.44 1.35 3.47 0.91 (0.53) 0.69 ---------------------------------------------------------------------------------------- Total from investment operations 1.38 1.24 3.42 0.77 (0.62) 0.66 ---------------------------------------------------------------------------------------- Distributions Dividends from net investment income -- (0.11) (0.14) -- -- Distributions from realized capital gains (1.21) (1.03) (1.64) -- (0.44) -- ---------------------------------------------------------------------------------------- Total distributions (1.21) (1.14) (1.64) (0.14) (0.44) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $16.41 $16.24 $16.14 $14.36 $13.73 $14.79 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 8.85%+ 8.17% 25.63% 5.64% (4.09%) 8.94%@ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $29,359 $30,287 $31,833 $25,661 $23,317 $13,903 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 2.40%# 2.40% 2.40% 2.40% 2.40% 2.40%# - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (0.70%)# (0.55%) (0.32%) (0.95%) (0.61%) (0.77%)# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 17%+ 20% 28% 165% 57% 54% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.49%# 2.40% 2.47% 2.48% 2.58% 2.71%# - ------------------------------------------------------------------------------------------------------------------------------------
================================================================================
Global Equity Fund ---------------------------------------------------------------------------------------- Class C ---------------------------------------------------------------------------------------- Six Months Ended 4/30/99 Year Year Year Year 4/01/94* ** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97** 10/31/96** 10/31/95** 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $16.30 $16.19 $14.41 $13.73 $14.79 $13.74 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.06) (0.10) (0.05) (0.14) (0.09) (0.10) Net realized and unrealized gain/(loss) on investments and foreign currency 1.44 1.35 3.47 0.92 (0.53) 1.15 ---------------------------------------------------------------------------------------- Total from investment operations 1.38 1.25 3.42 0.78 (0.62) 1.05 ---------------------------------------------------------------------------------------- Distributions Dividends from net investment income -- (0.11) -- (0.10) -- -- Distributions from realized capital gains (1.21) (1.03) (1.64) -- (0.44) -- ---------------------------------------------------------------------------------------- Total distributions (1.21) (1.14) (1.64) (0.10) (0.44) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $16.47 $16.30 $16.19 $14.41 $13.73 $14.79 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 8.82%+ 8.21% 25.54% 5.70% (4.09%) 8.94% ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $53,668 $57,774 $61,245 $64,830 $83,340 $101,443 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 2.40%# 2.40% 2.40% 2.40% 2.40% 2.40%# - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (0.71%)# (0.56%) (0.32%) (0.95%) (0.64%) (0.91%)# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 17%+ 20% 28% 165% 57% 54% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.49%# 2.40% 2.46% 2.48% 2.53% 2.52%# - ------------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized ** Net investment income per share has been calculated using the average share method @ Historical Total Return is the one-year performance return which includes Class C performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 17 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Emerging Growth Fund --------------------------------------------------------------------------------------- Class A Class B Class C ----------------------- ------------------------- ----------------------- Six Six Six Months Months Months Ended Ended Ended 4/30/99 1/06/98* 4/30/99 1/06/98* 4/30/99 1/06/98* ** to ** to ** to (Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $8.88 $10.00 $8.83 $10.00 $8.84 $10.00 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.06) (0.08) (0.09) (0.12)** (0.09) (0.12)** Net realized and unrealized gain/(loss) on investments and foreign currency 1.48 (1.04) 1.45 (1.05) 1.46 (1.04) ------------------------------------------------------------------------------------------- Total from investment operations 1.42 (1.12) 1.36 (1.17) 1.37 (1.16) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $10.30 $8.88 $10.19 $8.83 $10.21 $8.84 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 15.99%+ (11.20%)+ 15.40%+ (11.70%)+ 15.50%+ (11.60%)+ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $187 $146 $535 $263 $310 $238 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.70%# 1.70%# 2.35% 2.35%# 2.35% 2.35%# - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (1.31%)# (1.00%)# (1.95%) (1.76%)# (1.96%) (1.67%)# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 73%+ 52%+ 73% 52%+ 73% 52%+ - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 6.75%# 15.48%# 7.27% 16.48%# 7.31% 15.78%# - ------------------------------------------------------------------------------------------------------------------------------------ ===================================================================================================================================
Small/Mid Cap Fund ----------------------------------------------------------------------------------------- Class A Class B -------------------------------------------- ------------------------------------------ Six Six Months Months Ended Ended 4/30/99 Year Year 3/04/96* 4/30/99 Year Year 3/04/96* ** Ended Ended to ** Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 (Unaudited) 10/31/98 10/31/97** 10/31/96 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $16.09 $15.51 $12.62 $12.50 $15.77 $15.33 $12.58 $12.50 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.10) (0.15) (0.14) (0.02) (0.14) (0.25) (0.23) (0.05) Net realized and unrealized gain/(loss) on investments and foreign currency 3.77 0.97 3.03 0.14 3.65 0.93 2.98 0.13 ---------------------------------------------------------------------------------------- Total from investment operations 3.67 0.82 2.89 0.12 3.51 0.68 2.75 0.08 Distributions Distributions from capital gains (1.48) (0.24) -- -- (1.48) (0.24) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $18.28 $16.09 $15.51 $12.62 $17.80 $15.77 $15.33 $12.58 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 23.87%+ 5.51% 22.90% 0.96%+ 23.31%+ 4.65% 21.86% 0.64%+ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $5,593 $4,814 $4,170 $2,966 $17,920 $13,972 $11,802 $6,659 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.67%# 1.675% 1.675% 1.675%# 2.32%# 2.325% 2.325% 2.325%# - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (1.11%)# (0.90%) (1.02%) (0.40%)# (1.76%)# (1.55%) (1.67%) (1.05%# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 109%+ 162% 145% 92%# 109%+ 162% 145% 92%# - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 1.78%# 1.93% 2.24% 2.69%# 2.43%# 2.58% 2.79% 3.05%# - ------------------------------------------------------------------------------------------------------------------------------------
* 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. 18 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Small/Mid Cap Fund ------------------------------------------------------------------- Class C ------------------------------------------------------------------- Six Months Ended 4/30/99 Year Year 3/04/96* ** Ended Ended to (Unaudited) 10/31/98 10/31/97** 10/31/96 - --------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $15.79 $15.35 $12.59 $12.50 - --------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) (0.14) (0.25) (0.23) (0.05) Net realized and unrealized gain/(loss) on investments and foreign currency 3.67 0.93 2.99 0.14 --------------------------------------------------------------- Total from investment operations 3.53 0.68 2.76 0.09 Distributions Distributions from capital gains (1.48) (0.24) -- -- - --------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $17.84 $15.79 $15.35 $12.59 - --------------------------------------------------------------------------------------------------------------------- Total Return 23.41%+ 4.64% 21.92% 0.72%+ ===================================================================================================================== Ratios/Supplemental Data - --------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $19,962 $16,221 $13,471 $8,241 - --------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.32%# 2.325% 2.325% 2.325%# - --------------------------------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets (1.76%)# (1.55%) (1.67%) (1.05%)# - --------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 109%+ 162% 145% 92%# - --------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.43%# 2.58% 2.78% 3.04%# - --------------------------------------------------------------------------------------------------------------------- ====================================================================================================================================
Growth Equity Fund --------------------------------------------------------------------------------------- Class A Class B ------------------------------------------ ------------------------------------------- Six Six Months Months Ended Ended 4/30/99 Year Year 3/04/96* 4/30/99 Year Year 3/04/96* ** Ended Ended to ** Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 (Unaudited) 10/31/98 10/31/97** 10/31/96 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $17.73 $17.01 $13.78 $12.50 $17.46 $16.90 $13.73 $12.50 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.08) (0.07) (0.03) 0.28 (0.14) (0.18) (0.13) 0.24 Net realized and unrealized gain/(loss) on investments and foreign currency 3.87 2.22 3.45 1.00 3.82 2.17 3.46 0.99 ------------------------------------------------------------------------------------ Total from investment operations 3.79 2.15 3.42 1.28 3.68 1.99 3.33 1.23 Distributions Dividends from net investment income -- -- (0.19) -- -- -- (0.16) -- Distributions from capital gains (1.15) (1.43) -- -- (1.15) (1.43) -- -- ------------------------------------------------------------------------------------ Total distributions (1.15) (1.43) (0.19) (1.15) (1.43) (0.16) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $20.37 $17.73 $17.01 $13.78 $19.99 $17.46 $16.90 $13.73 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 22.16%+ 13.85% 25.13% 10.24%+ 21.86%+ 12.93% 24.50% 9.84%+ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $5,071 $3,919 $3,053 $2,244 $15,741 $11,659 $9,040 $4,748 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.65%# 1.65% 1.65% 1.65%# 2.30%# 2.30% 2.30% 2.30%# - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (0.87)# (0.43%) (0.17%) 4.11%# (1.52) (1.07%) (0.82%) 4.18%# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 79%+ 115% 181% 450%# 79%+ 115% 181% 450%# - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 1.77%# 1.91% 2.28% 2.71%# 2.41%# 2.56% 2.78% 3.06%# - ------------------------------------------------------------------------------------------------------------------------------------
* 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. 19 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Growth Equity Fund ---------------------------------------------------------------- Class C ---------------------------------------------------------------- Six Months Ended Year Year 3/04/96* 4/30/99** Ended Ended to (Unaudited) 10/31/98 10/31/97** 10/31/96 - ------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $17.44 $16.89 $13.73 $12.50 - ------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.14) (0.20) (0.13) 0.24 Net realized and unrealized gain/(loss) on investments and foreign currency 3.81 2.18 3.46 0.99 ---------------------------------------------------------------- Total from investment operations 3.67 1.98 3.33 1.23 Distributions Dividends from net investment income -- -- (0.17) -- Distributions from capital gains (1.15) (1.43) -- -- ---------------------------------------------------------------- Total distributions (1.15) (1.43) (0.17) - ------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $19.96 $17.44 $16.89 $13.73 - ------------------------------------------------------------------------------------------------------------------ Total Return 21.82%+ 12.87% 24.50% 9.84%+ ================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $19,130 $12,965 $12,766 $6,494 - ------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 2.30%# 2.30% 2.30% 2.30%# - ------------------------------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (1.52)# (1.06%) (0.82%) 4.13%# - ------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 79%+ 115% 181% 450%# - ------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.41%# 2.56% 2.75% 2.96%# - ------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================
Tax-Sensitive Equity Fund ------------------------------------------------------------------------------------ Class A Class B Class C ------------------------ ------------------------- ------------------------ Six Six Six Months Months Months Ended 1/06/98* Ended 1/06/98* Ended 1/06/98* 4/30/99** to 4/30/99** to 4/30/99** to (Unaudited) 10/31/98 (Unaudited) 10/31/98 (Unaudited) 10/31/98 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $9.07 $10.00 $9.04 $10.00 $9.04 $10.00 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.03) (0.01) (0.05) (0.04)*** (0.05) (0.03)** Net realized and unrealized gain/(loss) on Investments and foreign currency 0.68 (0.92) 0.65 (0.92) 0.64 (0.93) -------------------------------------------------------------------------------------- Total from investment operations 0.65 (0.93) 0.60 (0.96) 0.59 (0.96) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $9.72 $9.07 $9.64 $9.04 $9.63 $9.04 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 7.17%+ (9.30%)+ 6.64%+ (9.60%)+ 6.53%+ (9.60%)+ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $2,111 $4,149 $3,944 $2,900 $3,574 $3,286 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.60%# 1.60%# 2.25%# 2.25%# 2.25%# 2.25%# - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (0.48%)# (0.40%)# (1.14%)# (1.80%)# (1.13%)# (1.84%)# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 40%+ 38%+ 40%+ 38%+ 40%+ 38%+ - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.04%# 2.51%# 2.70%# 3.24%# 2.69%# 3.16%# - ------------------------------------------------------------------------------------------------------------------------------------
* 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. 20 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Oustanding Throughout the Period) - --------------------------------------------------------------------------------
Growth and Income Fund ----------------------------------------------------------------------------------------- Class A ----------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $24.26 $21.77 $17.56 $14.72 $13.09 $12.29 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.01 0.08 0.14 0.18 0.26 0.12 Net realized and unrealized gain/(loss) on investments and foreign currency 4.98 4.14 5.26 2.99 1.90 0.76 --------------------------------------------------------------------------------- Total from investment operations 4.99 4.22 5.40 3.17 2.16 0.88 --------------------------------------------------------------------------------- Distributions Dividends from net investment income -- -- (0.15) (0.21) (0.23) (0.08) Distributions from realized capital gains (0.96) (1.70) (1.04) (0.12) (0.30) -- Distributions in excess of net investment income -- (0.03) -- -- -- -- --------------------------------------------------------------------------------- Total distributions (0.96) (1.73) (1.19) (0.33) (0.53) (0.08) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $28.29 $24.26 $21.77 $17.56 $14.72 $13.09 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 21.01%+ 20.82% 31.95% 21.84% 17.28% 5.06%@ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) %52,834 $42,916 $34,186 $18,272 $12,180 $8,134 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.34%# 1.34% 1.34% 1.34% 1.34% 1.34%# - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 0.14%# 0.34% 0.66% 1.10% 1.91% 1.72%# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 10%+ 18% 39% 49% 40% 45% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 1.48%# 1.45% 1.50% 1.56% 1.69% 2.08%# - ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================
Growth and Income Fund ----------------------------------------------------------------------------------------- Class B ----------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95** 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $24.01 $21.67 $17.50 $14.69 $13.08 $12.29 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.07) (0.07) 0.01 0.07 0.16 0.10 Net realized and unrealized gain/(loss) on investments and foreign currency 4.91 4.11 5.23 2.99 1.94 0.77 ------------------------------------------------------------------------------- Total from investment operations 4.84 4.04 5.24 3.06 2.10 0.87 ------------------------------------------------------------------------------- Distributions Dividends from net investment income -- -- (0.03) (0.13) (0.19) (0.08) Distributions from realized capital gains (0.96) (1.70) (1.04) (0.12) (0.30) -- ------------------------------------------------------------------------------- Total distributions (0.96) (1.70) (1.07) (0.25) (0.49) (0.08) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $27.89 $24.01 $21.67 $17.50 $14.69 $13.08 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 20.60%+ 20.04% 31.40% 21.08% 16.73% 4.98%@ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $99,674 $75,574 $54,871 $34,740 $19,052 $3,885 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.99%# 1.99% 1.99% 1.99% 1.99% 1.99%# - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets (0.51%)# (0.32%) 0.01% 0.45% 1.14% 1.07%# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 10%+ 18% 39% 49% 40% 45% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.13%# 2.10% 2.15% 2.20% 2.33% 3.12%# - ------------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized ** Net investment income per share has been calculated using the average share method @ Historical Total Return is the one-year performance return which includes Class C performance prior to commencement of operations. 21 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Growth and Income Fund -------------------------------------------------------------------------------------------- Class C -------------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year Year 4/30/99 ** Ended Ended Ended Ended Ended (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $24.10 $21.75 $17.56 $14.71 $13.08 $12.71 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) (0.07) (0.07) 0.01 0.07 0.18 0.15 Net realized and unrealized gain/(loss) on investments and foreign currency 4.93 4.12 5.25 3.00 1.90 0.46 ----------------------------------------------------------------------------------- Total from investment operations 4.86 4.05 5.26 3.07 2.08 0.61 ----------------------------------------------------------------------------------- Distributions Dividends from net investment income -- -- (0.03) (0.10) (0.15) (0.13) Distributions from realized capital gains (0.96) (1.70) (1.04) (0.12) (0.30) (0.11) ----------------------------------------------------------------------------------- Total distributions (0.96) (1.70) (1.07) (0.22) (0.45) (0.24) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $28.00 $24.10 $21.75 $17.56 $14.71 $13.08 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 20.60%+ 20.00% 31.37% 21.12% 16.56% 4.85% ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $154,393 $122,395 $98,250 $74,825 $63,154 $46,078 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.99%# 1.99% 1.99% 1.99% 1.99% 1.99% - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income to average net assets (0.51%)# (0.31%) 0.01% 0.45% 1.26% 1.11% - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 10%+ 18% 39% 49% 40% 45% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.13%# 2.10% 2.13% 2.20% 2.26% 2.38% - ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================
Equity-Income Fund ------------------------------------------------------------------------------------- Class A ------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $17.64 $17.44 $17.37 $15.94 $14.78 $14.59 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.13 0.29 0.33 0.16 0.12 0.02 Net realized and unrealized gain/(loss) on investments and foreign currency 1.35 1.46 3.59 2.69 1.83 0.17 ------------------------------------------------------------------------------------- Total from investment operations 1.48 1.75 3.92 2.85 1.95 0.19 ------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.29) (0.33) (0.18) (0.14) -- -- Distributions from realized capital gains (1.12) (1.22) (3.67) (1.28) (0.79) -- ------------------------------------------------------------------------------------- Total distributions (1.41) (1.55) (3.85) (1.42) (0.79) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $17.71 $17.64 $17.44 $17.37 $15.94 $14.78 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 8.85%+ 10.55% 27.24% 19.23% 14.22% 4.82%@ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $28,941 $36,661 $36,334 $28,470 $22,026 $16,326 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average 1.42%# 1.415% 1.34% 1.34% 1.34% 1.34%# net assets - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 1.47%# 1.57% 2.01% 0.98% 0.79% 0.13%# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 55%+ 22% 36% 169% 54% 39% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 1.58%# 1.51% 1.55% 1.55% 1.62% 1.79%# - ------------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized ** Net investment income per share has been calculated using the average share method @ Historical Total Return is the one-year performance return which includes Class C performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 22 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Equity-Income Fund --------------------------------------------------------------------------------------- Class B --------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $17.43 $17.24 $17.22 $15.84 $14.77 $14.59 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.07 0.16 0.23 0.06 0.02 (0.02) Net realized and unrealized gain/(loss) on investments and foreign currency 1.35 1.46 3.54 2.69 1.84 0.20 ------------------------------------------------------------------------------------- Total from investment operations 1.42 1.62 3.77 2.75 1.86 0.18 ------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.17) (0.21) (0.08) (0.09) -- -- Distributions from realized capital gains (1.12) (1.22) (3.67) (1.28) (0.79) -- ------------------------------------------------------------------------------------- Total distributions (1.29) (1.43) (3.75) (1.37) (0.79) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $17.56 $17.43 $17.24 $17.22 $15.84 $14.77 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 8.55% + 9.81% 26.29% 18.59% 13.58% 4.75% @ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $37,304 $38,954 $36,191 $27,058 $19,874 $5,054 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 2.07% # 2.065% 1.99% 1.99% 1.99% 1.99% # - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 0.79% # 0.93% 1.36% 0.33% 0.13% (0.52%) # - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 55% + 22% 36% 169% 54% 39% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.23% # 2.16% 2.21% 2.20% 2.32% 2.82% # - ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================
Equity-Income Fund ------------------------------------------------------------------------------------- Class C ------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $17.53 $17.33 $17.27 $15.84 $14.77 $14.21 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.07 0.17 0.23 0.06 0.02 (0.07) Net realized and unrealized gain/(loss) on investments and foreign currency 1.35 1.46 3.56 2.69 1.84 0.74 ------------------------------------------------------------------------------------- Total from investment operations 1.42 1.63 3.79 2.75 1.86 0.67 ------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.17) (0.21) (0.06) (0.04) -- (0.03) Distributions from realized capital gains (1.12) (1.22) (3.67) (1.28) (0.79) (0.08) ------------------------------------------------------------------------------------- Total distributions (1.29) (1.43) (3.73) (1.32) (0.79) (0.11) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $17.66 $17.53 $17.33 $17.27 $15.84 $14.77 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 8.51% + 9.83% 26.33% 18.53% 13.58% 4.75% ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $86,983 $95,986 $94,649 $83,855 $83,719 $71,219 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 2.07% # 2.065% 1.99% 1.99% 1.99% 1.99% # - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 0.80% # 0.93% 1.36% 0.33% 0.15% (0.49%) # - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 55% + 22% 36% 169% 54% 39% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.23% # 2.10% 2.19% 2.20% 2.23% 2.29% # - ------------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized ** Net investment income per share has been calculated using the average share method @ Historical Total Return is the one-year performance return which includes Class C performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 23 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Balanced Fund ----------------------------------------------------------------------------------------- Class A ----------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99 ** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95** 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $11.48 $12.58 $12.33 $12.02 $11.13 $11.06 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.11 0.25 0.34 0.39 0.38 0.17 Net realized and unrealized gain/(loss) on investments and foreign currency 0.24 1.04 1.52 1.07 1.35 (0.10) ----------------------------------------------------------------------------------------- Total from investment operations 0.35 1.29 1.86 1.46 1.73 0.07 ----------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.23) (0.32) (0.45) (0.40) (0.32) -- Distributions from realized capital gains (0.84) (2.07) (1.16) (0.75) (0.52) -- ----------------------------------------------------------------------------------------- Total distributions (1.07) (2.39) (1.61) (1.15) (0.84) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $10.76 $11.48 $12.58 $12.33 $12.02 $11.13 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 3.12% + 12.42% 17.01% 13.10% 16.95% 0.76% @ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $14,848 $14,415 $12,294 $10,873 $10,033 $7,830 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.39% # 1.39% 1.34% 1.34% 1.34% 1.34% # - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 1.92% # 2.11% 2.74% 3.32% 3.39% 2.72% # - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 103% + 185% 211% 253% 226% 246% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 1.60% # 1.53% 1.59% 1.55% 1.69% 1.86% # - ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================
Balanced Fund ----------------------------------------------------------------------------------------- Class B ----------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99 ** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97** 10/31/96** 10/31/95** 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $11.40 $12.49 $12.26 $11.98 $11.12 $11.06 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.07 0.18 0.25 0.31 0.30 0.12 Net realized and unrealized gain/(loss) on investments and foreign currency 0.23 1.04 1.53 1.07 1.36 (0.06) ----------------------------------------------------------------------------------------- Total from investment operations 0.30 1.22 1.78 1.38 1.66 0.06 ----------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.15) (0.24) (0.39) (0.35) (0.28) -- Distributions from realized capital gains (0.84) (2.07) (1.16) (0.75) (0.52) -- ----------------------------------------------------------------------------------------- Total distributions (0.99) (2.31) (1.55) (1.10) (0.80) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $10.71 $11.40 $12.49 $12.26 $11.98 $11.12 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 2.68% + 11.71% 16.27% 12.35% 16.31% 0.67% @ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $17,482 $18,929 $17,140 $16,219 $9,875 $4,760 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 2.04% # 2.04% 1.99% 1.99% 1.99% 1.99% # - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 1.27% # 1.46% 2.09% 2.67% 2.69% 2.07% # - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 103% + 185% 211% 253% 226% 246% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.25% # 2.18% 2.23% 2.20% 2.37% 2.73% # - -----------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations # Annualized + Non-annualized **Net investment income per share has been calculated using the average share method @ Historical Total Return is the one-year performance return which includes Class C performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 24 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- ---------------------------------------------------------------------------------------------------------------------------------- Balanced Fund -------------------------------------------------------------------------------------- Class C -------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year Year 4/30/99** Ended Ended Ended Ended Ended (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94 - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $11.54 $12.62 $12.35 $12.02 $11.12 $11.52 - ---------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.07 0.18 0.25 0.32 0.31 0.22 Net realized and unrealized gain/(loss) on investments and foreign currency 0.24 1.05 1.54 1.07 1.35 (0.15) -------------------------------------------------------------------------------------- Total from investment operations 0.31 1.23 1.79 1.39 1.66 0.07 -------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.15) (0.24) (0.36) (0.31) (0.24) (0.18) Distributions from realized capital gains (0.84) (2.07) (1.16) (0.75) (0.52) (0.29) -------------------------------------------------------------------------------------- Total distributions (0.99) (2.31) (1.52) (1.06) (0.76) (0.47) - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $10.86 $11.54 $12.62 $12.35 $12.02 $11.12 - ---------------------------------------------------------------------------------------------------------------------------------- Total Return 2.76%+ 11.68% 16.21% 12.41% 16.25% 0.67% ================================================================================================================================== Ratios/Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $63,023 $65,049 $68,261 $72,821 $80,626 $86,902 - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.04%# 2.04% 1.99% 1.99% 1.99% 1.99%# - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 1.27%# 1.47% 2.09% 2.67% 2.76% 1.93%# - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 103%+ 185% 211% 253% 226% 246% - ---------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.25%# 2.18% 2.20% 2.20% 2.24% 2.22%# - ---------------------------------------------------------------------------------------------------------------------------------- ================================================================================================================================== Strategic Income Fund --------------------------------------------------------------------------------------- Class A --------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year Year 4/30/99** Ended Ended Ended Ended Ended (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $8.99 $9.76 $9.80 $9.07 $8.90 $10.00 - ---------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.35 0.67 0.70 0.80 0.78 0.65 Net realized and unrealized gain/(loss) on investments and foreign currency 0.11 (0.63) 0.28 0.72 0.18 (1.10) --------------------------------------------------------------------------------------- Total from investment operations 0.46 0.04 0.98 1.52 0.96 (0.45) --------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.35) (0.67) (0.84) (0.79) (0.79) (0.65) Distributions from realized capital gains (0.05) (0.14) (0.18) -- -- -- --------------------------------------------------------------------------------------- Total distributions (0.40) (0.81) (1.02) (0.79) (0.79) (0.65) - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $9.05 $8.99 $9.76 $9.80 $9.07 $8.90 - ---------------------------------------------------------------------------------------------------------------------------------- Total Return 5.28%+ 0.22% 10.57% 17.35% 11.43% (3.79%) ================================================================================================================================== Ratios/Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $11,443 $15,296 $15,924 $13,382 $10,041 $15,507 - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.50%# 1.50% 1.50% 1.50% 1.07% 0.41% - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 7.76%# 7.02% 7.25% 8.28% 9.08% 8.26% - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 79%+ 162% 193% 68% 180% 136% - ---------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 1.65%# 1.56% 1.61% 1.65% 1.69% .96% - ----------------------------------------------------------------------------------------------------------------------------------
* 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. 25 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Strategic Income Fund ----------------------------------------------------------------------------------------- Class B ----------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $8.99 $9.76 $9.80 $9.07 $8.90 $9.31 - ---------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.32 0.61 0.64 0.73 0.73 0.38 Net realized and unrealized gain/(loss) on investments and foreign currency 0.12 (0.63) 0.28 0.73 0.17 (0.41) ----------------------------------------------------------------------------------------- Total from investment operations 0.44 (0.02) 0.92 1.46 0.90 (0.03) ----------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.32) (0.61) (0.78) (0.73) (0.73) (0.38) Distributions from realized capital gains (0.05) (0.14) (0.18) -- -- -- ----------------------------------------------------------------------------------------- Total distributions (0.37) (0.75) (0.96) (0.73) (0.73) (0.38) - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $9.06 $8.99 $9.76 $9.80 $9.07 $8.90 - ---------------------------------------------------------------------------------------------------------------------------------- Total Return 5.06%+ (0.43%) 9.86% 16.59% 10.72% (4.18%)@ ================================================================================================================================== Ratios/Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $27,341 $29,210 $34,590 $30,890 $20,672 $5,440 - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.15%# 2.15% 2.15% 2.15% 1.95% 1.00%# - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 7.11%# 6.39% 6.60% 7.63% 8.10% 8.59%# - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 79%+ 162% 193% 68% 180% 136% - ---------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.31%# 2.21% 2.23% 2.27% 2.38% 2.04%# - ---------------------------------------------------------------------------------------------------------------------------------- ================================================================================================================================== Strategic Income Fund ----------------------------------------------------------------------------------------- Class C ----------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $8.99 $9.76 $9.80 $9.07 $8.90 $9.31 - ---------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.32 0.61 0.64 0.73 0.73 0.38 Net realized and unrealized gain/(loss) on investments and foreign currency 0.12 (0.63) 0.28 0.73 0.17 (0.41) ----------------------------------------------------------------------------------------- Total from investment operations 0.44 (0.02) 0.92 1.46 0.90 (0.03) ----------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.32) (0.61) (0.78) (0.73) (0.73) (0.38) Distributions from realized capital gains (0.05) (0.14) (0.18) -- -- -- ----------------------------------------------------------------------------------------- Total distributions (0.37) (0.75) (0.96) (0.73) (0.73) (0.38) - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $9.06 $8.99 $9.76 $9.80 $9.07 $8.90 - ---------------------------------------------------------------------------------------------------------------------------------- Total Return 5.06%+ (0.43%) 9.86% 16.59% 10.72% (4.20%)@ ================================================================================================================================== Ratios/Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $29,234 $33,537 $32,683 2,783 $14,273 $8,439 - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 2.15%# 2.15% 2.15% 2.15% 1.95% 1.00%# - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 7.14%# 6.37% 6.60% 7.63% 8.25% 8.59%# - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 79%+ 162% 193% 68% 180% 136% - ---------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.30%# 2.21% 2.24% 2.28% 2.37% 1.96%# - ----------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations **Net investment income per share has been calculated using the average share method # Annualized @ Historical Total Return is the one-year performance return which includes Class A performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 26 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Investment Quality Bond Fund ------------------------------------------------------------------------------------------- Class A ------------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year Year 4/30/99** Ended Ended Ended Ended Ended (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95** 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $10.63 $10.52 $10.34 $10.56 $9.74 $11.16 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.33 0.68 0.67 0.66 0.68 0.60 Net realized and unrealized gain/(loss) on investments and foreign currency (0.24) 0.10 0.18 (0.20) 0.82 (1.37) -------------------------------------------------------------------------------------- Total from investment operations 0.09 0.78 0.85 0.46 1.50 (0.77) -------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.34) (0.67) (0.67) (0.68) (0.68) (0.56) Distributions from realized capital gains -- -- -- -- -- (0.09) -------------------------------------------------------------------------------------- Total distributions (0.34) (0.67) (0.67) (0.68) (0.68) (0.65) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $10.38 $10.63 $10.52 $10.34 $10.56 $9.74 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 0.80%+ 7.63% 8.57% 4.52% 15.91% (7.08%) ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $6,515 $6,730 7,110 $9,056 $10,345 $11,150 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average 1.25%# 1.25% 1.25% 1.25% 1.25% 1.25%# net assets - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 6.27%# 6.45% 6.54% 6.37% 6.72% 5.86%# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 24%+ 48% 65% 56% 132% 186% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 1.59%# 1.54% 1.62% 1.55% 1.73% 1.74%# - ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================
Investment Quality Bond Fund -------------------------------------------------------------------------------------------- Class B -------------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $10.62 $10.52 $10.33 $10.55 $9.74 $10.21 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.29 0.61 0.60 0.60 0.61 0.33 Net realized and unrealized gain/(loss)on investments (0.22) 0.10 0.20 (0.20) 0.82 (0.51) ----------------------------------------------------------------------------------------- Total from investment operations 0.07 0.71 0.80 0.40 1.43 (0.18) ----------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.31) (0.61) (0.61) (0.62) (0.62) (0.29) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $10.38 $10.62 $10.52 $10.33 $10.55 $9.74 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 0.61%+ 6.93% 8.05% 3.92% 15.12% (7.34%)@ ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $4,653 $4,845 $4,613 $4,678 $3,472 $489 - ------------------------------------------------------------------------------------------------------------------------------------ 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 5.62%# 5.81% 5.89% 5.72% 5.95% 5.70%# - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 24%+ 48% 65% 56% 132% 186% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 2.24%# 2.20% 2.33% 2.27% 2.69% 4.88%# - ------------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations ** Net investment income per share has been calculated using the average share method # Annualized + Non-annualized @ Historical Total Return is the one-year performance return which includes Class A performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 27 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Investment Quality Bond Fund ---------------------------------------------------------------------------------------- Class C ---------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ----------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $10.62 $10.52 $10.33 $10.55 $9.74 $10.21 - ----------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.29 0.61 0.60 0.60 0.61 0.33 Net realized and unrealized gain/(loss)on investments (0.22) 0.10 0.20 (0.20) 0.82 (0.51) ---------------------------------------------------------------------------------------- Total from investment operations 0.07 0.71 0.80 0.40 1.43 (0.18) ---------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.31) (0.61) (0.61) (0.62) (0.62) (0.29) - ----------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $10.38 $10.62 $10.52 $10.33 $10.55 $9.74 - ----------------------------------------------------------------------------------------------------------------------------------- Total Return 0.61%+ 6.93%+ 8.05% 3.92% 15.12% (7.34%)@ =================================================================================================================================== Ratios/Supplemental Data - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $5,661 $5,532 $6,109 $7,543 $7,206 $2,406 - ----------------------------------------------------------------------------------------------------------------------------------- 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 5.62%# 5.81% 5.89% 5.72% 6.00% 5.70% # - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 24%+ 48% 65% 56% 132% 186% - ----------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.24%# 2.20% 2.29% 2.22% 2.50% 3.05%# - ----------------------------------------------------------------------------------------------------------------------------------- =================================================================================================================================== National Municipal Bond Fund ----------------------------------------------------------------------------------------- Class A ----------------------------------------------------------------------------------------- Six Months Ended Year Year Year Year Year 4/30/99 ** Ended Ended Ended Ended Ended (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $10.22 $10.09 $9.73 $9.62 $8.82 $10.25 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.18 0.47 0.48 0.48 0.51 0.51 Net realized and unrealized gain/(loss)on investments (0.13) 0.13 0.36 0.11 0.80 (1.43) ----------------------------------------------------------------------------------------- Total from investment operations 0.05 0.60 0.84 0.59 1.31 (0.92) ----------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.18) (0.47) (0.48) (0.48) (0.51) (0.51) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $10.09 $10.22 $10.09 $9.73 $9.62 $8.82 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 0.86% + 6.04% 8.85% 6.31% 15.26% (9.24%) ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $5,563 $5,820 $6,347 $7,710 $7,618 $7,663 - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of total expenses to average net assets 1.00% # 1.00% 0.99% 0.99% 0.80% 0.57% - ------------------------------------------------------------------------------------------------------------------------------------ Ratio of net investment income (loss) to average net assets 4.43% # 4.60% 4.87% 4.99% 5.55% 5.28% - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 24% + 43% 29% 49% 44% 6% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 1.41% # 1.23% 1.23% 1.25% 1.34% 1.26% - ------------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations ** Net investment income per share has been calculated using the average share method # Annualized + Non-annualized @ Historical Total Return is the one-year performance return which includes Class A performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 28 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
National Municipal Bond Fund ------------------------------------------------------------------------------------------ Class B ------------------------------------------------------------------------------------------ Six Months Ended Year Year Year Year 4/01/94* 4/30/99 ** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $10.22 $10.09 $9.73 $9.62 $8.81 $9.30 - ---------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.15 0.38 0.40 0.40 0.43 0.25 Net realized and unrealized gain/(loss)on investments (0.13) 0.13 0.36 0.11 0.81 (0.49) ------------------------------------------------------------------------------------------ Total from investment operations 0.02 0.51 0.76 0.51 1.24 (0.24) ------------------------------------------------------------------------------------------ Distributions Dividends from net investment income (0.15) (0.38) (0.40) (0.40) (0.43) (0.25) - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $10.09 $10.22 $10.09 $9.73 $9.62 $8.81 - ---------------------------------------------------------------------------------------------------------------------------------- Total Return 0.50%+ 5.15% 7.94% 5.41% 14.42% (9.71%)@ ================================================================================================================================== Ratios/Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $5,304 $5,273 $6,532 $6,130 $5,876 $2,036 - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.85%# 1.85% 1.84% 1.84% 1.70% 1.24%# - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 3.58%# 3.75% 4.02% 4.14% 4.59% 4.62%# - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 24%+ 43% 29% 49% 44% 6% - ---------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.26%# 2.08% 2.15% 2.11% 2.41% 2.81%# - ---------------------------------------------------------------------------------------------------------------------------------- ================================================================================================================================== National Municipal Bond Fund -------------------------------------------------------------------------------------- Class C -------------------------------------------------------------------------------------- Six Months Year Year Year Year 4/01/94* Ended Ended Ended Ended Ended to 4/30/99 ** 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 (Unaudited) - --------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $10.22 $10.09 $9.73 $9.62 $8.81 $9.30 - --------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income/(loss) 0.15 0.38 0.40 0.40 0.43 0.25 Net realized and unrealized gain/(loss)on investments (0.13) 0.13 0.36 0.11 0.81 (0.49) -------------------------------------------------------------------------------------- Total from investment operations 0.02 0.51 0.76 0.51 1.24 (0.24) -------------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.15) (0.38) (0.40) (0.40) (0.43) (0.25) - --------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $10.09 $10.22 $10.09 $9.73 $9.62 $8.81 - --------------------------------------------------------------------------------------------------------------------------------- Total Return 0.50%+ 5.15% 7.94% 5.41% 14.42% (9.71%)@ ================================================================================================================================= Ratios/Supplemental Data - --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $4,865 $5,147 $5,305 $5,693 $6,834 $1,911 - --------------------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 1.85%# 1.85% 1.84% 1.84% 1.70% 1.24%# - --------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 3.58%# 3.75% 4.02% 4.14% 4.53% 4.62%# - --------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 24%+ 43% 29% 49% 44% 6% - --------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.26%# 2.08% 2.15% 2.25% 2.63% 2.78%# - ---------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations ** Net investment income per share has been calculated using the average share method # Annualized + Non-annualized @ Historical Total Return is the one-year performance return which includes Class A performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 29 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
- ------------------------------------------------------------------------------------------------------------------------------------ U.S. Government Securities Fund ----------------------------------------------------------------------------------- Class A ----------------------------------------------------------------------------------- Six Months Ended Year Year Year Year Year 4/30/99 ** Ended Ended Ended Ended Ended (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $10.08 $9.94 $9.80 $9.98 $9.45 $10.35 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.27 0.56 0.59 0.56 0.63 0.53 Net realized and unrealized gain/(loss)on investments (0.19) 0.16 0.13 (0.12) 0.57 (0.74) ---------------------------------------------------------------------------------- Total from investment operations 0.08 0.72 0.72 0.44 1.20 (0.21) ---------------------------------------------------------------------------------- Distributions Dividends from net investment income (0.29) (0.58) (0.58) (0.56) (0.67) (0.50) Distributions from realized capital gains -- -- -- -- -- (0.19) ---------------------------------------------------------------------------------- Total distributions (0.29) (0.58) (0.58) (0.62) (0.67) (0.69) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $9.87 $10.08 $9.94 $9.80 $9.98 $9.45 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return 0.78% + 7.41% 7.56% 4.64% 13.15% (2.13%) ==================================================================================================================================== Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000's) $44,096 $49,624 $53,235 $72,774 $81,179 $100,622 - ------------------------------------------------------------------------------------------------------------------------------------ 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 to average net assets 5.48% # 5.65% 6.20% 5.71% 6.54% 5.39% - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 41% + 116% 364% 477% 469% 279% - ------------------------------------------------------------------------------------------------------------------------------------ Expense ratio before expense reimbursement by advisor 1.45% # 1.40% 1.42% 1.41% 1.45% 1.47% - ------------------------------------------------------------------------------------------------------------------------------------ ==================================================================================================================================== U.S. Government Securities Fund -------------------------------------------------------------------------------- Class B -------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99 ** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $10.07 $9.94 $9.80 $9.98 $9.45 $9.77 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.24 0.49 0.54 0.50 0.56 0.29 Net realized and unrealized gain/(loss)on investments (0.19) 0.15 0.11 (0.12) 0.58 (0.35) ------------------------------------------------------------------------------ Total from investment operations 0.05 0.64 0.65 0.38 1.14 (0.06) ------------------------------------------------------------------------------ Distributions Dividends from net investment income (0.26) (0.51) (0.51) (0.50) (0.61) (0.26) Distributions in excess of net investment income -- -- -- (0.06) -- -- ------------------------------------------------------------------------------ Total distributions (0.26) (0.51) (0.51) (0.56) (0.61) (0.26) - ----------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $9.86 $10.07 $9.94 $9.80 $9.98 $9.45 - ----------------------------------------------------------------------------------------------------------------------------------- Total Return 0.45%+ 6.60% 6.84% 3.97% 12.45% (2.44%)@ =================================================================================================================================== Ratios/Supplemental Data - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $13,354 $17,850 $16,659 $19,444 $13,993 $2,746 - ----------------------------------------------------------------------------------------------------------------------------------- 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 4.83% # 4.99% 5.55% 5.06% 5.53% 5.06%# - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 41% + 116% 364% 477% 469% 279% - ---------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.10% # 2.05% 2.09% 2.06% 2.28% 3.40% # - ----------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations + Non-annualized # Annualized ** Net investment income per share has been calculated using the average share method @ Historical Total Return is the one-year performance return which includes Class A performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 30 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
U.S. Government Securities Fund --------------------------------------------------------------------------- Class C --------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99 ** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96** 10/31/95 10/31/94 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $10.07 $9.94 $9.80 $9.98 $9.45 $9.77 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Operations: Net investment income/(loss) 0.24 0.49 0.54 0.50 0.56 0.26 Net realized and unrealized gain/(loss)on investments (0.19) 0.15 0.11 (0.12) 0.58 (0.32) -------------------------------------------------------------------------- Total from investment operations 0.05 0.64 0.65 0.38 1.14 (0.06) -------------------------------------------------------------------------- Distributions Dividends from net investment income (0.26) (0.51) (0.51) (0.50) (0.61) (0.26) Distributions in excess of net investment income ------- ------- ------- (0.06) ------- ------- -------------------------------------------------------------------------- Total distributions (0.26) (0.51) (0.51) (0.56) (0.61) (0.26) - ----------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $9.86 $10.07 $9.94 $9.80 $9.98 $9.45 - ----------------------------------------------------------------------------------------------------------------------------------- Total Return 0.45% + 6.60% 6.84% 3.97% 12.45% (2.44%)@ =================================================================================================================================== Ratios/Supplemental Data - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $12,380 $12,708 $14,716 $20,009 $20,186 $10,766 - ----------------------------------------------------------------------------------------------------------------------------------- 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 4.82% # 5.00% 5.55% 5.06% 5.74% 5.06% # - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 41% + 116% 364% 477% 469% 279% - ----------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 2.11% # 2.05% 2.09% 2.06% 2.15% 2.44% # - ----------------------------------------------------------------------------------------------------------------------------------- ==================================================================================================================================== Money Market Fund ------------------------------------------------------------------------- Class A ------------------------------------------------------------------------- Six Months Ended Year Ended Year Ended Year Ended Year Ended Year Ended 4/30/99 ** 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 (Unaudited) ----------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ----------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income 0.02 0.05 0.05 0.05 0.05 0.03 Distributions Dividends from net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.03) ----------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ----------------------------------------------------------------------------------------------------------------------------------- Total Return 2.19% + 5.18% 5.13% 5.16% 5.60% 3.48% =================================================================================================================================== Ratios/Supplemental Data ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $10,282 $10,295 $11,057 $8,087 $11,379 $8,499 ----------------------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 0.50% # 0.50% 0.50% 0.50% 0.50% 0.50% ----------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income to average net assets 4.39% # 5.06% 5.02% 5.02% 5.45% 3.40% ----------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 0.80% # 0.92% 0.96% 0.95% 0.96% 0.95% -----------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations + Non-annualized # Annualized ** Net investment income per share has been calculated using the average share method @ Historical Total Return is the one-year performance return which includes Class A performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 31 NORTH AMERICAN FUNDS FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - --------------------------------------------------------------------------------
Money Market Fund -------------------------------------------------------------------------------- Class B -------------------------------------------------------------------------------- Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ---------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income 0.02 0.05 0.05 0.05 0.05 0.02 Distributions Dividends from net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.02) - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ---------------------------------------------------------------------------------------------------------------------------------- Total Return 2.19%+ 5.18% 5.13% 5.16% 5.60% 3.48%@ ================================================================================================================================== Ratios/Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $4,973 $5,919 $3,332 $3,062 $1,564 $312 - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 0.50%# 0.50% 0.50% 0.50% 0.50% 0.50%# - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 4.39%# 5.02% 5.02% 5.02% 5.52% 3.96%# - ---------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 0.80%# 0.98% 1.05% 1.18% 1.41% 4.83%# - ---------------------------------------------------------------------------------------------------------------------------------- ==================================================================================================================================
Money Market Fund ------------------------------------------------------------------------------ Class C ------------------------------------------------------------------------------ Six Months Ended Year Year Year Year 4/01/94* 4/30/99** Ended Ended Ended Ended to (Unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94 - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ---------------------------------------------------------------------------------------------------------------------------------- Investment Operations: Net investment income 0.02 0.05 0.05 0.05 0.05 0.02 Distributions Dividends from net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.02) - ---------------------------------------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ---------------------------------------------------------------------------------------------------------------------------------- Total Return 2.19%+ 5.18% 5.13% 5.16% 5.60% 3.48%@ ================================================================================================================================== Ratios/Supplemental Data - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's) $7,776 $8,237 $7,539 $9,840 $9,394 $12,170 - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of total expenses to average net assets 0.50%# 0.50% 0.50% 0.50% 0.50% 0.50%# - ---------------------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (loss) to average net assets 4.38%# 5.05% 5.01% 5.02% 5.46% 3.96%# - ---------------------------------------------------------------------------------------------------------------------------------- Expense ratio before expense reimbursement by advisor 0.79%# 0.94% 1.00% 0.98% 0.95% 1.18%# - ----------------------------------------------------------------------------------------------------------------------------------
* Commencement of Operations ** Net investment income per share has been calculated using the average share method + Non-annualized # Annualized @ Historical Total Return is the one-year performance return which includes Class A performance prior to commencement of operations. The accompanying notes are an integral part of the financial statements. 32 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) (showing percentage of total value of investments) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- International Small Cap Fund - -------------------------------------------------------------------------------- Shares Value COMMON STOCKS - 76.26% ------ ----- Agriculture - 1.81% Nutreco Holding NV* 8,000 $324,104 -------- Air Travel - 3.55% Kobenhavns Lufthavne 2,275 227,979 Ryanair Holdings Plc* 9,100 407,225 ------- 635,204 Automobiles & Related - 0.56% Haldex AB 6,995 100,319 ------- Broadcasting - 7.39% Capital Radio 16,400 227,419 Class Editore* 8,400 81,639 Flextech Plc 26,750 385,694 Gruppo Editoriale L'Espresso SpA* 21,975 321,519 Primacom* 100 4,331 United International Holdings, Inc.* 5050 301,738 ------- 1,322,340 Business Services - 7.46% Altran Technologies SA 2,225 528,860 BTG Plc 13,575 58,963 Select Appointments Holdings Plc 23,775 302,915 Semcon AB 11,625 112,984 Sixt AG 4,575 331,063 ------- 1,334,785 Computer Peripherals - 6.18% Dassault Systemes SA 3,725 137,059 Eidos Plc* 10,525 396,003 Ixos Software* 800 163,108 Nippon System Development 8,000 408,642 ------- 1,104,812 Computers & Business Equipment - 5.46% Fuji Software ABC, Inc. 7,280 442,579 Misys 7,385 68,668 Psion Plc 31,850 466,258 ------- 977,505 Consumer Products - 1.34% Fancl Corporation 1,300 185,061 Royal Canin 1050 54,163 ------ 239,224 Drugs & Health Care - 2.76% Icon Plc* 7,075 111,431 Ortivus AB 7,350 47,914 Rhon Klinikum AG 800 80,286 Schwarz Pharma AG* 4,950 254,138 ------- 493,769 Electronics - 4.40% Kudelski SA* 60 233,991 Logitech International* 1,100 158,616 Natsteel Electronics* 68,000 228,498 Singulus Technology 1,175 166,330 ------- 787,435 Energy - 1.25% Vestas Wind Systems*, 144A 3,275 223,448 ------- Environmental Services - 1.58% Tomra Systems AS 7,125 282,792 ------- Food & Beverages - 3.73% Baron de Ley* 4,650 160,140 Chipita International* 6,562 140,523 Ordina Beheer NV* 3,000 71,941 Raision Tehtaat Oy Plc* 32,325 295,381 ------- 667,985 Homebuilders - 1.31% IHC Caland NV* 5,175 234,529 ------- Hotels & Restaurants - 7.75% Grupo Posadas SA* 246,575 168,119 Krasnapolsky Hotels* 900 72,068 Pizza Express 39,250 577,744 Tele Pizza* 500,075 317,395 J.D. Wetherspoon Plc 52,965 251,354 ------- 1,386,680 Household Appliances & Furnishings - 3.57% Dorel Industries, Inc.* 9,675 205,696 Hunter Douglas NV* 6,350 244,847 Industrie Natuzzi SpA* 9,825 187,903 ------- 638,446 Industrial Machinery - 0.94% KCI Konecranes International Plc 4,525 167,307 ------- International Oil - 1.23% Coflexip* 2,425 107,913 Stolt Comex Seaway* 8900 111,250 ------- 219,163 Leisure Time - 3.31% Cinar Films, Inc.* 20,250 422,719 Ducati Motor Holding* 15,100 44,665 KTM-Motorraholding 2,000 124,845 ------- 592,229 Paper - 0.81% Aracruz Cellulose SA 7,225 144,500 ------- Publishing - 0.74% Scoot.com* 187,975 133,054 ------- Retail Trade - 4.68% Beter Bed Holdings NV* 3,225 92,838 Bulgari SpA 50,850 306,192 Douglas Holdings AG* 4,350 199,897 Narvesen ASA* 2,300 56,834 Ryohln Keikaku Co. 1000 182,130 ------- 837,891 Telecommunication Services - 4.45% Energis Plc* 11,800 309,417 ESAT Telecom Group Plc* 3,875 189,391 Filtronic 16,675 230,159 Phonak* 55 66,690 ------ 795,657 TOTAL COMMON STOCKS (Cost $10,295,028) $13,643,178 =========== PREFERRED STOCKS - 6.09% Automobiles - 2.99% Porsche AG 220 $534,539 The accompanying notes are an integral part of the financial statements. 33 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) ================================================================================ Shares Value ------ ----- Financial Services - 3.10% Marschollek, Lautenschlaeger und Partner AG* 990 $554,293 -------- TOTAL PREFERRED STOCKS (Cost $620,451) $1,088,832 ---------- WARRANTS - 0.01% Gold Peak Industries (Expires 08/06/00; strike price HKD 5.25)* 36,000 $1,115 ------ TOTAL WARRANTS (Cost $0) $1,115 ------ SHORT TERM INVESTMENTS - 17.64% Navigator Securities Lending Trust 2,854,376 $2,854,376 SSGA Money Market Fund 301,274 301,274 ------- $3,155,650 ---------- TOTAL INVESTMENTS (International Small Cap Fund) (Cost $14,071,129) $17,888,775 =========== - -------------------------------------------------------------------------------- International Equity Fund - -------------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 96.96% Aerospace & Military Technology - 0.37% British Aerospace Plc 7,194 $53,814 Singapore Technologies Engineering 23,000 24,677 Thomson 492 16,112 ------ 94,604 Appliances & Household Durables - 1.79% Electrolux AB 1,100 22,295 Philips Electronics 616 53,036 Matsushita Electric Industrial 7,000 133,060 Pioneer Electronic Corporation 1,000 19,009 Sanyo Electric Company Ltd. 8,000 29,945 Sharp Corporation 5,000 58,617 Sony Corporation 1,500 140,052 ------- 456,012 Automobiles - 4.33% Cycle & Carriage Ltd. 2,000 11,908 Daimlerchrysler AG 2,700 266,546 Fiat SpA ITL1000 Ncvt Risp Shs 3,436 6,153 Fiat SpA ITL1000 Ords 14,291 47,858 Honda Motor Company 4,000 176,185 Nissan Motors Company 11,000 42,187 Peugeot SA 156 25,873 Toyota Motor Corp. 15,000 425,808 Volkswagen AG 950 67,340 Volvo AB 1,200 31,646 ------ 1,101,504 Banking - 16.68% 77 Bank Ltd. 1,000 9,002 Abbey National Plc. 5,272 118,735 Abn Amro Holdings NV 4,941 117,704 Argentaria, Caja Postal Y Banco 2,332 54,838 Asahi Bank Ltd. 9,000 47,555 Banca Commerciale Italiana 6,507 53,548 Banca Intesa SpA 8,812 46,917 Banca Popolare di Milano 1,220 10,375 Banco Bilbao Vizcaya SA 10,534 157,574 Banco Comercial Portugues SA 1,336 37,669 Banco Espirito Santo 690 16,576 Banco Santander Central Hispano 9,028 196,084 Bank Austria AG 861 53,400 Bank of East Asia Ltd. 5,400 13,133 Bank of Tokyo-Mitsubishi Ltd 17,000 250,829 Bank of Yokohama Ltd. 4,000 11,221 Banque Nationale de Paris 611 50,636 Barclays Plc 5,293 168,424 Bayerische Hypo-Und Vereinsbank 1,300 84,734 BPI-SGPS SA 664 17,887 Chiba Bank Ltd. 2,000 8,391 Credit Suisse Holding 780 154,650 Deutsche Bank AG 1,600 92,963 Dresdner Bank AG 1,550 66,807 Foereningssparbanken AB 1,000 21,927 Fuji Bank Ltd. 18,000 140,479 Grupo Financiero Bancomer SA 310,200 107,764 Gunma Bank Ltd. 1,000 7,285 Halifax Plc 9,455 132,633 Hang Seng Bank Ltd. 6,800 80,493 HSBC Holdings Plc HKD 6,081 228,911 HSBC Holdings Plc GBP 2,468 94,294 Industrial Bank of Japan 11,000 91,651 Joyo Bank Ltd. 2,000 7,955 Lloyds TSB Group Plc 18,685 301,187 Mediobanca SpA 2,240 28,159 Mitsubishi Trust & Banking Corp. 4,000 43,879 National Australia Bank Ltd. 6,740 131,219 Oversea-Chinese Banking Corp. Ltd. 8,000 74,987 Paribas 523 55,581 Sakura Bank Ltd. 15,000 57,905 San Paolo IMI SpA 4,773 71,599 Shizuoka Bank Ltd. 2,000 23,564 Skandinaviska Enskilda Banken 1,700 22,164 Societe Generale 286 51,181 Sumitomo Bank 11,000 148,853 Suncorp Metway Ltd. 1,614 9,826 Svenska Handelsbanken 600 22,472 Tokai Bank Ltd 7,000 45,721 UBS AG 600 203,710 Unicredito Italiano 14,803 75,062 United Overseas Bank Ltd. 6,000 46,336 Westpac Banking Corp. 9,258 70,675 Wing Lung Bank Ltd. 1,600 6,317 ----- 4,243,441 Beverages & Tobacco - 2.29% Asahi Breweries Ltd. 3,000 39,089 Austria Tabak AG 169 10,355 Bass Plc 3,023 47,464 British American Tobacco Plc 5,608 47,273 Coca-Cola Amatil Ltd. 4,789 22,729 Diageo Plc 12,813 147,584 Fosters Brewing Group Ltd. 9,017 26,303 Fraser & Neave Ltd. 2,000 8,843 Heineken Holdings NV 1,071 53,742 Kirin Brewery Company Ltd. 5,000 56,523 Moet Hennessy Louis Vuitton 261 69,978 Oesterreichische Brau-Beteilign 70 3,017 Pernod Ricard 210 14,165 Seita Soc. Nat'l. D'Exploitation 198 11,923 The accompanying notes are an integral part of the financial statements. 34 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Beverages & Tobacco - continued % Swedish Match AB 1,400 $4,596 Tabacalera SA 904 17,600 Unicer Uniao Cervejjeira SA 94 2,135 ----- 583,318 Broadcasting & Publishing - 1.26% British Sky Broadcasting Group 6,028 52,850 Canal Plus SA 91 25,302 Elsevier NV 2,074 31,002 Mediaset SpA 4,067 35,230 News Corp Ltd. 9,562 80,133 Reed International Plc 4,324 39,336 South China Morning Post 10,000 6,031 Television Broadcasts Ltd. 2,000 8,128 Wolters Kluwer NV 1,000 43,524 ------ 321,537 Building Materials & Components - 1.11% Blue Circle Industries Plc 6,795 44,052 Boral Ltd. 5,593 9,142 BPB Plc 3,186 16,657 Cimpor Cimentos de Portugal SA 604 16,590 CSR Ltd. 5,213 13,937 Heidelberger Zement AG 150 10,157 Holderbank Financiere Glarus AG 20 24,107 Italcementi Fabbriche Riunite 535 6,189 Italcementi Fabbriche Riunite NCNV 775 3,758 Lafarge SA 323 31,392 Pioneer International Ltd. 4,710 11,501 RMC Group Plc 1,575 23,817 Sumitomo Forestry Co. Ltd. 1,000 7,536 Sumitomo Osaka Cement Co. Ltd. 4,000 8,876 Tarmac Plc 5,299 10,102 Toto Ltd. 4,000 32,892 Weinerberger Baustoffindustrie 66 12,620 ------ 283,325 Business & Public Services - 3.09% Adecco SA 60 30,242 Autopistas Concesionaria Espanol 1,338 16,905 BAA Plc 4,114 43,018 Brambles Industries Ltd. 1,115 32,764 Cap Gemini Sogeti 216 33,018 Dai Nippon Printing Co. Ltd. 3,000 47,530 Flughafen Wein AG 163 7,074 Mayne Nickless Ltd. 1,820 6,335 Railtrack Group Plc 1,864 38,922 Rentokil Initial Plc 10,084 59,170 Reuters Group 2,596 35,184 SAP AG 100 32,009 SECOM Co. Ltd. 1,000 97,639 Securitas AB 800 11,853 Soc. Gen. de Aguas de Barcelona 241 13,621 Sodexho Alliance SA 101 16,570 Suez Lyonnaise des Eaux 423 71,944 Thames Water Plc 1,823 25,177 Toppan Printing Co. Ltd. 2,000 24,050 United Utilities Plc 2,510 28,305 Vedior NV 249 5,603 Vivendi SA 467 109,077 ------- 786,009 Chemicals - 3.85% Aga AB 400 5,286 Akzo Nobel NV 1,149 51,890 Asahi Chemical Industry Co. Ltd. 11,000 64,018 BASF AG 1,800 78,818 Bayer AG 2,100 89,181 BOC Group Plc 2,165 34,201 Cin Corporacao Industrial Norte 34 1,063 Imperial Chemical Industries Plc 2,729 29,633 L'Air Liquide 272 41,952 Lenzing AG 28 1,538 Mitsubishi Chemical Corp. 11,000 33,989 Novartis AG 190 278,082 Orica Ltd. 1,476 8,591 Rhone Poulenc SA 1,110 52,767 Shin-Etsu Chemical Co. Ltd. 1,000 31,820 Showa Denko KK 3,000 3,693 Sumitomo Chemical Co. Ltd. 13,000 58,022 Teijin Ltd. 8,000 33,629 Toray Industries, Inc. 11,000 58,307 Ube Industries Ltd. 6,000 12,209 Wesfarmers Ltd. 949 9,828 ----- 978,520 Construction & Housing - 1.17% Acs Actividades de Construccion 310 9,307 Aoki Corporation 7,000 4,572 Bau Holdings AG 36 1,179 Bilfinger & Berger Bauaktienge 200 4,807 Bouygues 83 21,096 Daiwa House Industry Co. Ltd. 4,000 47,731 Dragados Y Construcciones 296 9,881 Drott AB 300 2,489 Engil SGPS 96 532 Fomento de Construcciones Y Contra 236 14,410 Hazama Corporation 4,000 3,350 Hochtief AG 350 13,496 Impregilo SpA 1,437 1,233 Kajima Corporation 8,000 24,117 Kumagai Gumi Co. Ltd. 13,000 15,023 Leighton Holdings Ltd. 1,393 5,254 Penta-Ocean Construction Co. Ltd. 4,000 7,603 Sekisui House Ltd. 4,000 44,783 Shimizu Corporation 6,000 23,514 Sirti SpA 626 3,578 Skanska/Frueher AB 400 15,859 Taisei Corporation 8,000 17,953 Taylor Woodrow Plc 2,018 6,330 ----- 298,096 Data Processing & Reproduction - 1.16% Canon, Inc. 4,000 97,806 Fujitsu Ltd. 9,000 154,120 Getronics NV 148 6,074 OCE NV 313 9,192 Olivetti & Co. SpA* 6,651 23,186 Wm-Data Nordik AB 100 3,674 ----- 294,053 Electrical & Electronics - 3.01% ABB AB Ser A 2,100 29,246 ABB AB Ser B 800 11,141 Alcatel 571 70,092 Dassault Systemes SA 341 12,547 The accompanying notes are an integral part of the financial statements. 35 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Electrical & Electronics - continued L M Ericsson Telefon AB 2,700 $70,884 General Electric Plc 10,330 109,346 Hitachi Ltd. 19,000 138,737 Johnson Electric Holdings Ltd. 2,500 7,467 Legrand SA 85 20,293 Misys Plc 1,038 9,652 Mitsubishi Electric Corp. 10,000 34,919 NEC Corporation 7,000 83,587 Sagem SA 9 5,039 Schneider SA 513 33,464 Siemens AG 1,750 129,409 ------- 765,824 Electronic Components & Instruments - 1.38% Creative Technology Ltd. 750 9,418 Fanuc Ltd. 1,300 56,607 Kyocera Corporation 1,100 65,307 Murata Manufacturing Co. Ltd. 3,000 171,579 Taiyo Yuden Co. Ltd. 2,000 26,629 Venture Manufacturing, Singapore 2,000 10,965 Yokogawa Electric Corp. 2,000 10,819 ------ 351,324 Energy Sources - 6.75% BP Amoco Plc 30,713 583,014 Broken Hill Proprietary Co. Ltd. 8,129 91,901 Burmah Castrol Plc 1,274 21,520 Elf Aquitaine SA 825 128,115 Ente Nazionale Idrocarburi SpA 27,601 181,652 Japan Energy Corp. 8,000 10,451 Nippon Mitsubishi Oil Corp. 12,000 53,559 OMV AG 205 19,815 Repsol SA 4,899 79,700 Royal Dutch Petroleum Co. NV 7,418 431,784 Santos Ltd. 3,076 10,585 Total SA 768 105,146 ------- 1,717,243 Financial Services - 1.79% Acom Co. Ltd. 600 44,967 AMP Limited 4,780 55,830 Credit Saison Co. Ltd. 700 14,302 Daiwa Securities Group, Inc. 5,000 30,564 ING Groep NV 3,177 195,665 Nomura Securities Co. Ltd. 7,000 75,498 Orix Corporation 200 16,094 Schroder Plc 400 9,556 St. James Place Capital 3,056 13,569 ------ 456,047 Food & Household Products - 3.13% Ajinomoto Co., Inc. 4,000 46,257 Associated British Foods Plc 2,627 18,975 Azucarera Ebro Agricolas 165 2,913 Cadbury Schweppes Plc 3,824 50,997 Eridania Beghin-Say SA 128 17,754 Goodman Fielder Wattie Ltd. 6,054 5,849 Groupe Danone 186 49,712 Jeronimo Martins Sgps. SA 565 18,592 KAO Corporation 2,000 50,745 Nestle SA 120 222,036 Nippon Meat Packers, Inc. 2,000 26,846 Parmalat Finanziaria SpA 6,071 8,786 Tate & Lyle Plc 2,741 18,850 Unilever NV 2,251 154,092 Unilever Plc 11,655 103,590 ------- 795,996 Forest Products & Paper - 0.39% Amcor Ltd. 3,318 17,871 Arjo Wiggins Appleton Plc 3,674 11,230 Buhrmann NV 306 5,609 Cartiere Burgo SpA 298 2,125 Investimentos Participacoes 119 972 Oji Paper Co. Ltd. 5,000 29,936 Portucel Industrial SA 660 3,737 Reno de Medici SpA 418 1,020 Rexam Plc 2,449 9,554 Svenska Cellulosa AB 700 17,880 ------ 99,932 Gold Mines - 0.03% Normandy Mining Ltd. 9,863 8,550 ----- Health & Personal Care - 6.41% Astrazeneca Plc 3,302 129,399 Chugai Pharmaceutical Co. Ltd. 2,000 23,782 Cie Generale de Optique Essilor 40 13,184 CSL Ltd. 541 4,296 Faulding & Co. Ltd. 625 3,516 Glaxo Wellcome Plc 25p Ords 11,015 326,399 Kyowa Hakko Kogyo Company 4,000 23,145 L'Oreal 195 124,835 Merck KGAA 700 23,663 Roche Holding AG CHF100 Ords 5 88,123 Roche Holding CHF Genusschein NPV 21 246,929 Sankyo Co. Ltd. 2,000 41,953 Sanofi SA 321 50,289 Schering AG 250 28,853 Shiseido Co. Ltd. 1,000 15,743 Smithkline Beecham Plc 19,071 252,186 Taisho Pharmaceutical Co. Ltd. 2,000 61,464 Takeda Chemical Industries Ltd. 4,000 173,840 ------- 1,631,598 Industrial Components - 1.44% BICC Plc 2,652 4,480 Bridgestone Corporation 4,000 107,185 Continental AG 350 8,689 Denso Corporation 1,000 20,306 Fag Kugelfischer Georg Schaefer 500 4,859 Furukawa Electric Co. Ltd. 4,000 17,485 Magnetti Marelli SpA 1,635 2,314 Michelin 637 28,902 NGK Insulators Ltd. 4,000 48,736 Pirelli SpA 7,673 23,426 SKF AB 300 5,156 Sumitomo Electric Industries 6,000 72,601 Valeo SA 265 22,396 ------ 366,534 Insurance - 5.97% Aegon NV 1,920 184,067 Allianz AG 800 254,804 Allied Zurich Plc 5,608 74,338 Amb Aachener Und Muenchener Bete 100 10,670 Assicurazione Generali SpA 3,426 133,369 The accompanying notes are an integral part of the financial statements. 36 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Insurance - continued Axa Colonia Konzern AG 100 $9,508 Axa 979 126,381 CGU Plc 3,561 55,625 Cie De Seguros Tranquilidad SA 65 1,665 Corporacion Mapfre Cia International 372 7,561 Generali Holding, Vienna 54 11,038 Gio Australia Holdings Ltd. 3,378 10,037 Istituto Nazionale delle Assicuratrice 13,699 36,179 Legal & General Group Plc 19,432 55,409 Muenchener Rueckversicherungs 450 90,322 Prudential Corporation Plc 7,131 101,409 QBE Insurance Group Ltd. 2,017 9,023 Riunione Adriatica de Sicurta 1,674 17,596 Royal & Sun Alliance Insurance 4,607 39,836 Sai Sta Assicuratrice Industrial 477 5,870 Skandia Forsakring AB 1,500 28,980 Swiss Ruckversicher 45 98,453 Tokio Marine & Fire Insurance Co. 5,000 58,240 Unione Immobiliare SpA 15,287 8,753 Zurich Allied AG 140 90,201 ------ 1,519,332 Leisure & Tourism - 0.85% Accor SA 112 29,520 Compass Group Plc 2,599 26,758 Granada Group Plc 3,365 71,780 Hongkong & Shanghai Hotels Ltd. 4,500 3,977 Hotel Properties Ltd. 3,000 2,317 Ladbroke Group Plc 5,700 27,394 Overseas Union Enterprise Ltd. 1,000 2,240 Rank Group Plc 3,296 13,706 Shangri-La Asia Ltd. 10,000 11,869 Sol Melia SA 165 6,150 Tabcorp Holdings Ltd. 1,662 13,517 Telepizza SA 1,144 7,251 ----- 216,480 Machinery & Engineering - 1.76% Atlas Copco AB Ser A 400 10,762 Atlas Copco AB Ser B 100 2,631 BWT (Benckiser) AG 13 2,578 Daikin Industries Ltd. 2,000 20,868 Deutz AG * 200 1,542 Ebara Corporation 2,000 24,301 GKN Plc 3,056 52,161 Komatsu Ltd. 5,000 29,769 Kubota Ltd. 8,000 22,710 Linde AG 50 30,900 Mannesmann AG 750 98,721 Mitsubishi Heavy Industries Ltd. 15,000 65,693 Mitsui Engineering & Shipbuilding Co. 8,000 9,714 Sembcorp Industries Ltd. 12,000 14,927 SMC Corporation 400 36,878 Stork NV 162 3,457 Sulzer AG 10 6,351 Va Technolocies AG 115 10,934 Zardoya Otis SA 124 3,196 ----- 448,091 Merchandising 3.63% Ahold NV 2,014 74,785 Boots Company Plc 3,695 49,039 Carrefour 114 90,322 Casino Guichard Perrachon 227 $22,350 Coles Myer Ltd. 5,572 29,605 Daiei, Inc. 5,000 15,785 Great Universal Stores Plc 3,813 43,797 Hennes & Mauritz AB 500 43,084 Ito-Yokado Company Ltd. 2,000 122,760 Jusco Company Ltd. 1,000 19,930 Karstadt AG 50 22,475 Kingfisher Plc 5,615 83,825 Marks & Spencer Plc 10,297 70,607 Marui Company Ltd. 1,000 16,589 Mitsukoshi Ltd. 2,000 5,761 Mycal Corporation 1,000 6,197 Pinault-Printemps Redoute 350 58,049 Promodes 56 35,495 Rinascente Per L'Esercizio 737 6,267 Safeway Plc 3,959 16,495 J. Sainsbury Plc 6,861 43,570 Tesco Plc 7,658 22,760 Valora Holding AG 20 4,667 Woolworths Ltd. 5,787 18,382 ------ 922,595 Metals - Non-Ferrous - 0.64% Mitsubishi Materials Corporation 8,000 19,226 Nippon Light Metal Company Ltd. 4,000 6,063 North Ltd. 3,459 7,325 Pechiney SA 266 11,240 Rio Tinto Plc 4,070 71,039 Straits Trading Company Ltd. 2,000 2,370 Sumitomo Metal Mining Company Ltd. 1,000 4,539 WMC Ltd. 9,182 39,678 ------ 161,479 Metals - Steel - 0.90% Acerinox SA 381 11,499 Boehler-Uddeholm 85 4,996 British Steel Plc 10,171 24,093 Kawasaki Steel Corporation 6,000 11,506 Natsteel Ltd. 3,000 4,528 Nippon Steel Corporation 38,000 85,279 NKK Corporation 20,000 15,910 Sandvik AB Ser A 600 13,512 Sandvik AB Ser B 300 6,774 SSAB Swedish Steel 200 2,548 Sumitomo Metal Industries Ltd. 15,000 19,972 Thyssen Krupp AG 700 15,307 Usinor 854 13,208 ------ 229,131 Misc Materials & Commodities - 0.52% Asahi Glass Company Ltd. 5,000 38,268 Caradon Plc 3,813 9,692 Cie de Saint Gobain 295 50,641 Corticeira Amorim Socdad Gestora 158 1,781 Mayr-Melnhof Karton AG 92 4,469 Pilkington Plc 6,448 8,454 Rhi AG 108 3,296 Rio Tinto Ltd. 927 15,612 ------ 132,213 Multi-Industry - 1.92% Agiv AG 150 3,272 Alusuisse Lonza Group AG 20 23,923 The accompanying notes are an integral part of the financial statements. 37 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Multi-Industry - continued Corporacion Financiera Alba SA 74 $11,339 Hanson Plc 2,662 26,465 Howard Smith Ltd. 1,007 8,567 Hutchison Whampoa Ltd. 14,000 125,532 Invensys Plc 12,094 61,480 Keppel Corporation Ltd. 7,000 19,973 Lagardere Groupe SCA 424 16,788 Lonmin Plc 992 8,338 Montedison SpA ITL1000 NCVT 4,490 3,391 Montedison SpA ITL1000 Ords 13,590 13,036 Pacific Dunlop Ltd. 5,473 9,598 Preussag AG 500 26,304 SNIA SpA 3,118 4,019 Sonae Investimentos SA 332 11,851 Southcorp Ltd. 3,201 13,133 Swire Pacific Ltd. 5,500 30,867 T.I. Group Plc 2,341 19,583 Viag AG 100 50,813 ------ 488,272 Real Estate - 1.89% British Land Company Plc 867 7,950 Cheung Kong Holdings Ltd. 9,000 81,860 City Developments Ltd. 7,000 46,631 First Capital Corporation Ltd. 3,000 3,979 General Property Trust Units 6,762 12,055 Great Portland Estates Plc 2,037 6,947 Hang Lung Development Co. Ltd. 5,000 6,451 Hopewell Holdings Ltd. 5,000 2,742 Hysan Development Co. Ltd. 2,000 3,083 Land Securities Plc 1,402 18,393 Lend Lease Corp. Ltd. 2,695 36,334 MEPC Plc 1,471 10,838 Metrovacesa SA 229 4,996 Mitsubishi Estate Company Ltd. 4,000 40,898 Mitsui Fudosan Company Ltd. 2,000 18,422 New World Development Co. Ltd. 9,000 22,294 Parkway Holdings Ltd. 3,000 7,286 Schroders Property Funds 2,001 3,271 Sino Land Company Ltd. 10,000 5,773 Slough Estates 1,313 7,129 Stockland Trust Group 1,603 3,925 Sun Hung Kai Properties Ltd. 9,000 78,958 United Industrial Corp. Ltd. 11,000 6,939 United Overseas Land Ltd. 5,000 4,775 Vallehermoso SA 772 7,666 Westfield Trust 6,540 14,585 Wharf Holdings Ltd. 7,000 17,159 ------ 481,338 Recreation - Other Consumer Goods - 0.74% Adidas SAlomon AG 150 14,768 Casio Computer Company Ltd. 2,000 13,901 EMI Group Plc 2,650 22,541 Fuji Photo Film Company Ltd. 2,000 75,532 Sega Enterprises Ltd. 700 12,456 Shimano, Inc. 1,000 25,456 Ste. BIC 182 10,209 The Swatch Group AG 20 14,262 ------ 189,126 Telecommunications - 8.78% British Telecommunications Plc 13,535 226,012 Cable & Wireless Plc 5,330 76,355 Deutsche Telekom AG 4,300 169,436 France Telecom SA 2,951 238,328 Hong Kong Telecommunications Ltd. 41,600 111,903 KPN NV 1,043 43,522 Netcom AB 200 6,424 Nippon Telegraph & Telephone 48 522,526 Portugal Telecom SA 919 38,299 Singapore Telecommunications Ltd. 50,000 92,554 Swisscom AG 130 47,716 Telecom Italia Mobile SpA ITL50 Risp 3,623 12,133 Telecom Italia Mobile SpA ITL50 14,748 87,870 Telecom Italia SpA ITL1000 Ords 8,319 88,497 Telecom Italia SpA ITL1000 Risp 2,209 11,878 Telefonica SA 3,457 161,965 Telstra Corporation Ltd. 24,619 133,591 TNT Post Groep NV 1,674 45,095 Vodafone Group Plc 6,478 119,322 ------- 2,233,426 Textiles & Apparel - 0.08% Benetton Group SpA 5,870 10,542 Toyobo Company Ltd. 6,000 9,546 ----- 20,088 Transportation - Airlines - 0.85% Alitalia Linee Aeree Italiane 4,689 14,514 Austrian Airlines 166 5,312 British Airways Plc 4,045 32,064 Cathay Pacific Airways Ltd. 11,000 17,669 Deutsche Lufthansa AG 1,150 26,605 Japan Airlines Company Ltd. 11,000 34,634 KLM Royal Dutch Air 292 8,853 Sairgroup 50 11,437 Singapore Airlines Ltd. 7,000 64,375 ------ 215,464 Transportation - Road & Rail - 1.16% ABB AG 30 43,750 Brisa Auto-Estradas de Portugal 431 18,258 Comfort Group Ltd. 4,000 1,627 East Japan Railway Company 19 112,167 Hankyu Corp. 2,000 8,407 Kinki Nippon Railway Company Ltd. 6,000 30,296 Nippon Express Company Ltd. 4,000 26,126 Odakyu Electric Railway Co. Ltd. 5,000 18,004 Tobu Railway Company Ltd. 6,000 18,339 Tokyu Corporation 7,000 19,285 ------ 296,260 Transportation - Shipping - 0.29% Nedlloyd NV 89 2,294 Nippon Yusen 8,000 31,151 Peninsular & Orient Steam Navigation 2,791 40,589 ------ 74,033 Utilities - Electrical & Gas - 4.47% Australian Gas Light Company 1,895 13,418 BG Plc 14,630 82,373 Centrica Plc 16,505 33,455 CLP Holdings Ltd. 9,000 48,303 Edison SpA 2,332 20,694 Electricidade de Portugal 4,211 79,183 The accompanying notes are an integral part of the financial statements. 38 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Utilities - Electrical & Gas - continued Endesa SA 4,797 $106,621 Gas Natural Sdg SA 753 60,734 Hongkong & China Gas Company Ltd. 17,700 24,891 Iberdrola SA 4,540 63,548 Italgas Sta Italiana Per Il Gas 1,573 6,996 Kansai Electric Power Co., Inc. 5,300 104,517 National Power Plc 4,777 38,501 Oesterreichische Elektrizitaets 235 36,742 Osaka Gas Company Ltd. 11,000 37,766 RWE AG 1,350 61,752 Scottish & Southern Energy Plc 2,278 21,401 Scottish Power Plc 4,702 38,728 Tohoku Electric Power Co., Inc. 1,300 19,649 Tokyo Electric Power Co., Inc. 5,200 111,037 Tokyo Gas Company Ltd. 8,000 21,102 Union Electrica Fenosa 1,504 20,003 Veba AG 1,550 84,982 ------ 1,136,397 Wholesale & International Trade - 1.06% Hagemeyer NV 284 9,601 Marubeni Corporation 7,000 16,178 Metro AG 1,000 72,258 Mitsubishi Corporation 6,000 39,692 Mitsui & Company 10,000 73,271 Sumitomo Corporation 8,000 59,086 ------ 270,085 TOTAL COMMON STOCKS (Cost $23,207,546) $24,667,274 ----------- PREFERRED STOCKS - 0.49% Automobiles - 0.08% Fiat SpA 4,422 $7,614 Volkswagen AG 300 12,598 ------ 20,212 ------ Broadcasting & Publishing - 0.26% News Corporation 8,449 66,042 ------ Business & Public Services - 0.15% SAP AG 100 37,502 ------ TOTAL PREFERRED STOCKS $123,757 (Cost $100,571) -------- Principal Value --------- ----- CONVERTIBLE BONDS - 2.28% Compass Group 5.75% due 10/05/07 $85,000 $226,304 Finlayson Global, 144A, Zero Coupon due 02/19/04 260,000 352,943 ------- TOTAL CONVERTIBLE BONDS $579,247 (Cost $510,957) ======== Shares Value ------ ----- RIGHTS & WARRANTS - 0.02% AGA B Shares, Exp. 06/02/99 400 $0 Telefonica SA, Exp. 05/02/99 5,257 4,887 ----- TOTAL RIGHTS & WARRANTS $4,887 (Cost $0) ====== SHORT TERM INVESTMENTS - 0.26% Navigator Securities Lending Trust 65,020 $65,020 SSGA Money Market Fund 1,000 1,000 ----- 66,020 ------ TOTAL INVESTMENTS (International Equity Fund) $25,441,185 (Cost $23,885,094) =========== - -------------------------------------------------------------------------------- Global Equity Fund - -------------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 89.44% Aerospace & Military Technology- 1.04% B.F. Goodrich Co. 31,100 $1,236,225 ---------- Banking - 7.05% ABN AMRO Holdings NV 62,500 1,488,864 Bank of Ireland 74,357 1,486,852 Bank One Corp. 28,058 1,655,422 Chase Manhattan Corp. 13,600 1,125,400 Mellon Bank Corp. 18,500 1,374,781 Nordbanken Holding AB 198,150 1,244,749 --------- 8,376,068 Beverages & Tobacco - 5.13% Allied Domecq Plc 130,800 1,018,423 Imperial Tobacco, Ltd. 77,500 766,747 Pernod-Ricard 9,370 632,017 Philip Morris Companies, Inc. 104,900 3,678,056 --------- 6,095,243 Broadcasting & Publishing - 2.89% Houghton Mifflin Co. 45,200 2,017,050 Mediaset 163,000 1,411,984 --------- 3,429,034 Chemicals - 4.38% BASF AG 51,470 2,253,757 Bayer AG 39,600 1,681,705 Potash Corporation of Saskatchewan, Inc. 20,810 1,267,353 --------- 5,202,815 Construction Materials - 4.84% Blue Circle Industries Plc 113,250 734,207 Cimpor-Cimentos de Portugal SA 30,650 841,845 CSR, Ltd. 344,000 919,673 Holderbank Financier Glarus AG 1,235 1,488,605 Wolseley Plc 196,500 1,759,940 --------- 5,744,270 Data Processing & Reproduction - 1.13% Data General Corp.* 109,500 1,279,781 NCR Corp.* 1,512 61,992 ------ 1,341,773 Electric Utilities - 4.32% Iberdrola SA 102,400 1,433,324 Unicom Corp. 53,650 2,082,291 Veba AG 29,400 1,611,919 --------- 5,127,534 Electrical & Electronics - 2.22% GenRad, Inc.* 67,900 1,256,150 Intelidata Technologies Corp.* 119,200 610,900 Hitachi, Ltd 105,000 766,706 ------- 2,633,756 The accompanying notes are an integral part of the financial statements. 39 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Energy Equipment & Services - 0.76% Noble Drilling Corp.* 46,110 $904,909 -------- Energy Sources - 3.84% Burmah Castrol Plc 92,585 1,563,885 Elf Aquitaine 15,090 2,343,338 Ocean Energy, Inc.* 70,115 652,946 ------- 4,560,169 Engineering & Business Services - 1.32% Invensys Plc 100,053 508,619 WPP Group Plc 118,900 1,053,922 --------- 1,562,541 Financial Services - 4.74% Enhance Financial Services Group, Inc. 60,600 1,253,662 Finova Group, Inc. 31,005 1,497,929 Int. Nederlanden Groep NV 28,078 1,729,271 UST Corp. 47,200 1,141,650 --------- 5,622,512 Food & Household Products - 11.02% Benckiser Cl. B 14,900 821,647 Bongrain SA 2,850 1,102,232 Danisco 12,400 579,884 Group Danone 8,190 2,188,935 IBP, Inc. 25,450 515,363 KAO Corp. 94,000 2,385,028 Nestle SA 1,600 2,960,477 Reckitt & Colman Plc 213,215 2,531,332 --------- 13,084,898 Forest Products - 1.59% Boise Cascade Corp. 33,800 1,360,450 Georgia Pacific Corp. 5,650 522,625 ------- 1,883,075 Health & Personal Care - 1.00% Daiichi Pharmaceutical Co. 1,000 16,245 Rhone-Poulenc SA 24,700 1,174,189 --------- 1,190,434 Home Builders - 0.95% Green Property Co. 176,000 1,134,151 --------- Household Appliances & Furnishing - 2.11% Matsushita Electric Ind. Co., Ltd. 72,000 1,368,615 Philips Electronics NV 13,250 1,140,780 --------- 2,509,395 Industrial Components - 0.47% Michelin 12,240 555,358 ------- Insurance - 5.98% MBIA, Inc. 35,520 2,388,720 Royal Sun Alliance Insurance Insurance Group Plc 195,952 1,694,350 SCOR 25,350 1,264,004 Sumitomo Marine & Fire 99,000 671,496 Terra Nova (Bermuda) Holdings, Ltd. 48,100 1,079,244 --------- 7,097,814 Motor Vehicle Parts - 1.54% Borg-Warner Automotive, Inc. 32,200 1,827,350 --------- Motor Vehicles - 0.93% Volkswagen AG 15,630 1,107,924 --------- Multi Industry - 3.45% Cie Financiere Richemont 1,900 3,230,386 Tenneco, Inc. 32,000 864,000 ------- 4,094,386 Non-Ferrous Metals - 0.51% Alcoa, Inc. 9,700 603,825 ------- Merchandising - 4.59% Albertsons, Inc. 23,800 1,225,700 American Stores Co. 54,300 1,713,844 BJ's Wholesale Club, Inc.* 67,000 1,779,688 Delhaize Freres SA 8,400 734,747 ------- 5,453,979 Recreation & Other Consumer Goods - 2.34% Fuji Photo Film Co. 43,000 1,623,932 Tupperware Corp. 48,900 1,158,319 --------- 2,782,251 Telecommunication Services - 9.30% BCT Telus Communications Ord 47,249 1,176,283 BCT Telus Communications NV 15,749 387,757 Comsat Corp. 71,670 2,329,275 Nippon Telephone & Telegraph 258 2,808,575 Swisscom AG 1,380 506,522 Telecom Italia SpA 358,600 1,928,220 Telefonica SA* 40,800 1,911,535 --------- 11,048,167 TOTAL COMMON STOCKS (Cost $85,781,967) $106,209,856 ------------ RIGHTS & WARRANTS - 0.03% Telecommunication Services Telefonica SA (rts.) exp. 5/20/99 40,800 $37,929 TOTAL RIGHTS & WARRANTS (Cost $0) $37,929 ------- SHORT TERM INVESTMENTS - 10.53% Navigator Securities Lending Trust 12,498,705 $12,498,705 SSGA Money Market Fund 1,000 1,000 ----- $12,499,705 ----------- TOTAL INVESTMENTS (Global Equity Fund) (Cost $98,281,672) $118,747,490 ============ - -------------------------------------------------------------------------------- Emerging Growth - -------------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 98.00% Aerospace & Defense - 1.24% Tristar Aerospace Co.* 1,100 $11,688 ------- Business Services - 13.31% Acxiom Corp.* 440 11,110 FYI, Inc.* 500 15,500 Getty Images, Inc.* 600 15,600 INSpire Insurance Solutions, Inc.* 1200 26,100 Iron Mountain, Inc.* 450 12,516 Jones Lang Lasalle, Inc.* 300 8,006 Kroll-O'Gara Co.* 500 11,969 Lason Holdings, Inc.* 200 7,913 NOVA Corporation* 214 5,564 QRS Corp.* 200 11,000 ------ 125,278 The accompanying notes are an integral part of the financial statements. 40 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Communications & Media - 11.19% Digital River, Inc.* 200 $7,725 Entercom Communications Corp.* 200 7,425 Granite Broadcasting Corp.* 700 5,294 Heftel Broadcasting Corp.* 200 10,875 Infoseek Corp.* 100 5,106 InfoSpace.com, Inc. 100 14,331 Metro Networks, Inc.* 200 9,000 Network Event Theater, Inc.* 700 10,281 Outdoor Systems, Inc.* 300 7,556 Playboy Enterprises, Inc.* 400 12,875 VerticalNet, Inc.* 100 11,350 Xoom.com, Inc.* 50 3,500 ----- 105,318 Computers - 10.65% Adaptec, Inc.* 500 12,031 Business Objects SA 500 11,719 Emulex Corp.* 300 13,237 Legato Systems, Inc.* 200 8,087 Mercury Interactive Corp. 300 8,456 National Instruments Corp.* 300 10,200 Radiant Systems, Inc.* 1,300 14,788 Remedy Corp.* 500 8,750 Transaction Systems Architects, Inc.* 400 12,975 ------ 100,243 Consumer Non-Durables - 1.04% Central Garden & Pet Co. * 700 9,800 ----- Consumer Services - 3.39% DeVry, Inc.* 500 13,187 ITT Eucational Services, Inc. 200 4,912 Strayer Education, Inc.* 400 13,850 ------ 31,949 Drugs & Health Care - 12.17% Accredo Health, Inc.* 500 11,063 Alkermes, Inc.* 400 10,700 Advanced Paradigm, Inc.* 300 15,750 ChiRex, Inc.* 500 13,000 Hanger Orthopedic Group, Inc.* 800 11,700 Mid Atlantic Medical Services, Inc.* 600 5,475 Minimed, Inc.* 200 12,500 Renal Care Group, Inc.* 400 8,350 Serologicals Corp.* 700 5,250 Sunrise Assisted Living, Inc.* 200 8,000 VWR Scientific Products Corp.* 500 12,812 ------ 114,600 Electronics - 12.36% ATMI, Inc.* 500 11,500 Avant! Corp.* 500 6,750 Burr-Brown Corp.* 500 13,250 Cerprobe Corp.* 500 5,625 DII Group, Inc.* 300 9,300 Etec Systems, Inc.* 400 12,350 Novellus Systems, Inc.* 400 18,900 Photronics, Inc.* 600 14,363 Uniphase Corp.* 200 24,275 ------ 116,313 Energy - 1.08% Stone Energy Corp.* 300 10,181 ------ Environment Services - 1.33% Casella Waste Systems, Inc.* 500 $12,500 ------- Financial Services - 0.88% Enhance Financial Services Group, Inc. 400 8,275 ----- Food & Beverages - 1.54% Ben & Jerry's Homemade, Inc.* 500 14,531 ------ Industrial Mfg. & Processing - 1.47% Advanced Energy Industries, Inc.* 500 13,844 ------ Leisure Time - 6.72% American Classic Voyages Co.* 500 8,937 Coach USA, Inc.* 300 7,125 Fairfield Communities, Inc.* 1,000 12,875 Premier Parks, Inc.* 400 13,825 Sunterra Corp.* 800 8,600 Vistana, Inc.* 800 11,900 ------ 63,262 Lodgings & Restaurants - 2.17% Foodmaker, Inc.* 400 9,650 NPC International, Inc.* 600 10,800 ------ 20,450 Petroleum Services - 4.79% BJ Services Company* 600 16,050 Cooper Cameron Corp.* 100 3,863 Petroleum Geo Services, Inc.* 700 11,725 Smith International, Inc.* 300 13,462 ------ 45,100 Retail Trade - 1.59% 99 Cents Only Stores* 150 7,069 Value America, Inc.* 200 7,888 ----- 14,957 Telecommunication Services - 8.41% Concentric Network Corporation* 200 16,700 Exodus Communications, Inc.* 100 9,013 Gilat Satellite Networks, Ltd.* 200 10,400 Harmonic Lightwaves, Inc.* 200 9,125 Powerwave Technologies, Inc.* 400 12,150 Stanford Telecommunications, Inc.* 700 12,600 Viatel, Inc.* 200 9,200 ----- 79,188 Transportation - 2.67% Mark VII, Inc.* 400 5,700 Swift Transportation, Inc. 450 8,269 Varlen Corp. 400 11,200 ------ 25,169 TOTAL COMMON STOCKS (Cost $821,120) $922,646 -------- SHORT TERM INVESTMENTS - 2.00% SSGA Money Market Fund 18,800 $18,800 ------- TOTAL INVESTMENTS (Emerging Growth Fund) (Cost $839,920) $941,446 ======== - -------------------------------------------------------------------------------- Small/Mid Cap Fund - -------------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 75.46% Advertising - 1.17% Young & Rubicam, Inc.* 15,500 $617,094 -------- The accompanying notes are an integral part of the financial statements. 41 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Air Travel - 0.49% Skywest, Inc. 10,000 $260,000 -------- Apparel & Textiles - 1.84% Tommy Hilfiger Corp.* 13,900 971,262 ------- Banking - 1.40% Golden State Bancorp, Inc.* 30,000 736,875 ------- Broadcasting - 2.92% Broadcast Communications, Inc.* 7,000 897,750 Jacor Communications, Inc.* 3,800 304,950 Jones Intercable, Inc.* 7,200 333,900 ------- 1,536,600 Business Services - 8.18% Catalina Marketing Corp.* 4,700 401,556 Cintas Corp. 3,000 206,250 DST Systems, Inc.* 7,000 407,750 DuPont Photomasks, Inc.* 5,000 218,750 Excite, Inc.* 8,000 1,168,000 Fiserv, Inc.* 21,100 1,235,669 Siebel Systems, Inc.* 17,400 668,813 ------- 4,306,788 Computer Peripherals - 3.28% Learning Company, Inc.* 13,500 418,500 Microchip Technology, Inc.* 37,300 1,305,500 --------- 1,724,000 Computers & Business Equipment - 2.81% Ceridian Corp. * 12,000 439,500 Quantum Corp.* 58,100 1,038,537 --------- 1,478,037 Drugs & Health Care - 9.98% Agouron Pharmaceuticals, Inc.* 20,000 1,181,250 Amerisource Health Corp.* 28,000 775,250 Biogen, Inc.* 9,400 893,588 Biomet, Inc. 27,300 1,119,300 Forest Laboratories, Inc.* 28,800 1,281,600 --------- 5,250,988 Electronic Components - 1.53% ASM Lithography Holdings NV* 5,000 195,000 Linear Technology Corp. 3,800 216,125 Xilinx, Inc.* 8,600 392,375 ------- 803,500 Electronics - 5.97% Altera Corp.* 9,800 708,050 Jabil Circuit, Inc.* 9,500 442,344 Maxim Integrated Products, Inc.* 3,600 201,600 Rambus, Inc.* 15,600 937,950 Sanmina Corp. * 12,800 849,600 ------- 3,139,544 Financial Services - 4.75% Charter One Financial, Inc. 28,100 878,125 Dime Bancorp, Inc. 36,700 846,394 Legg Mason, Inc.* 7,500 261,563 Paine Webber Group, Inc. 11,000 516,312 ------- 2,502,394 Homebuilders - 0.79% Champion Enterprises, Inc. * 22,500 417,656 ------- Household Appliances & Furnishing - 0.26% Furniture Brands International, Inc.* 5,400 135,337 ------- Household Products - 0.77% Dial Corporation 12,000 $408,000 -------- Leisure Time - 0.63% Coach USA, Inc.* 13,900 330,125 ------- Manufacturing - 3.08% Sealed Air Corp.* 7,700 468,256 Teradyne, Inc.* 24,400 1,151,375 --------- 1,619,631 Packaged Foods & Products - 2.38% U.S. Foodservice, Inc.* 28,800 1,253,462 --------- Restaurants & Lodging - 6.60% Outback Steakhouse, Inc.* 38,250 1,369,828 Papa John's Int'l., Inc.* 11,700 470,194 Starbucks Corp.* 44,200 1,632,638 --------- 3,472,660 Retail Trade - 14.16% Abercrombie & Fitch Co.* 5300 504,162 BJ's Wholesale Club, Inc.* 34,000 903,125 Bed, Bath & Beyond, Inc.* 41,100 1,466,756 Best Buy Company, Inc.* 4,300 205,325 Family Dollar Stores, Inc. 39,000 940,875 Gucci Group NV 17,800 1,342,788 Linens 'N Things, Inc.* 19,400 887,550 Office Depot, Inc.* 10,700 235,400 Tiffany & Company 5,500 462,000 Williams Sonoma, Inc.* 17,400 504,600 ------- 7,452,581 Telecommunications - 2.47% Cnet, Inc.* 8,400 1,079,400 Frontier Corp. 4,000 220,750 ------- 1,300,150 TOTAL COMMON STOCKS (Cost $36,135,307) $39,716,684 ----------- Principal Value --------- ----- SHORT TERM INVESTMENTS - 24.54% Anheuser Busch, Inc. $800,000 $799,062 Ford Motor Credit Co. 800,000 798,841 General Electric Capital Corp. 800,000 798,846 National Australia Funding 700,000 698,887 United Parcel Service 700,000 698,906 Shares ------ Navigator Securities Lending 8,163,172 8,163,172 Trust SSGA Money Market Fund 958,281 958,281 ------- 12,915,995 TOTAL INVESTMENTS (Small/Mid Cap Fund) (Cost $49,051,302) $52,632,679 =========== - -------------------------------------------------------------------------------- Growth Equity Fund - -------------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 89.31% Banking - 3.62% Citigroup, Inc. 3,579 269,320 Fifth Third Bancorp 2,779 199,220 Firstar Corporation 6,171 185,516 Northern Trust Corporation 1,949 181,501 State Street Corporation 2,355 206,063 The accompanying notes are an integral part of the financial statements. 42 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Banking - continued US Bancorp Del 4,683 $173,564 Wells Fargo & Company* 7,481 323,086 ------- 1,538,267 Broadcasting - 5.54% Chancellor Media Corporation* 1,688 92,629 Comcast Corporation 8,162 536,141 Mediaone Group, Inc.* 10,413 849,310 TCA Cable TV, Inc. 2,104 104,806 Time Warner, Inc. 11,065 774,550 ------- 2,357,436 Business Services - 6.31% Amazon.com, Inc.* 831 142,984 America Online, Inc.* 5,499 784,982 At Home Corporation* 2,701 388,775 Automatic Data Processing, Inc. 3,817 169,857 Cintas Corporation 2,653 182,394 Computer Sciences Corporation* 4,033 240,216 Devry, Inc.* 6,632 174,919 Fiserv, Inc.* 3,747 219,434 Interpublic Group Companies, Inc. 2,437 189,020 Momentum Business Applications* 22 162 Staples, Inc.* 2,964 88,920 Yahoo, Inc.* 571 99,747 ------ 2,681,408 Computer Peripherals - 6.16% E M C Corporation* 5,810 632,927 Intuit* 1,718 147,963 Microsoft Corporation* 19,731 1,604,377 Oracle Corporation* 8,578 232,142 ------- 2,617,409 Computers & Business Equipment - 2.16% Dell Computer Corporation* 18,306 753,978 International Business Machines 563 117,773 Sun Microsystems, Inc.* 768 45,936 ------ 917,687 Cosmetics - 1.62% Avon Products, Inc.* 2,411 130,947 Gillette Company 10,702 558,511 ------- 689,458 Drugs & Health Care - 13.98% Amgen, Inc.* 5,868 360,515 Bristol-Myers Squibb Company 7,127 453,010 Eli Lilly & Company 7,612 560,434 IMS Health, Inc. 15,008 450,240 Johnson & Johnson Company 4,030 392,925 Medtronic, Inc. 4,010 288,469 Merck & Company, Inc. 13,454 945,144 Pfizer, Inc. 9,922 1,141,650 Schering Plough Corporation 14,089 680,675 Warner Lambert Company 9,835 668,165 ------- 5,941,227 Electrical Equipment - 4.37% General Elec Company 15,738 1,660,359 Tyco International Ltd. 2,409 195,731 ------- 1,856,090 Electronic Components - 4.48% Intel Corporation 20,302 1,242,229 Motorola, Inc. 2,165 173,471 Perkin Elmer Corporation 1,841 199,058 Solectron Corporation* 5,965 289,303 ------- 1,904,060 Entertainment & Recreation - 1.03% Carnival Corporation 2,003 82,624 Walt Disney Company* 5,847 185,642 Mattel, Inc. 6,503 168,265 ------- 436,531 Financial Services - 5.80% American Express Company 5,230 683,496 Associates First Capital Corp. 6,546 290,070 Federal National Mortgage Assn. 8,581 608,715 Franklin Research, Inc. 5,272 210,880 Marsh & Mclennan Cos., Inc. 5,983 458,073 Robert Half International, Inc.* 7,323 174,837 Charles Schwab Corp. 372 40,827 ------ 2,466,897 Food & Beverages - 2.10% Coca-Cola Company 10,449 710,532 Tootsie Roll Industries, Inc. 2,342 97,047 Wm. Wrigley, Jr., Company 948 84,076 ------ 891,654 Household Products - 1.83% Clorox Company 758 87,454 Colgate Palmolive Co. 2,707 277,298 Dial Corporation 6,010 204,340 Procter & Gamble Company 2,239 210,046 ------- 779,138 Industrial Components - 0.68% Illinois Tool Works, Inc. 3,766 289,982 ------- Insurance - 3.90% American International Group, Inc. 5,587 656,123 Berkshire Hathaway, Inc.* 406 1,002,820 --------- 1,658,943 Lodging & Restaurants - 0.47% Mcdonalds Corporation 4,708 199,502 ------- Motor Vehicles - 0.28% Harley Davidson, Inc. 2,003 119,429 ------- Motor Vehicle Parts - 0.51% Danaher Corporation 3,249 215,855 ------- Petroleum Services & Equipment - 2.82% Baker Hughes, Inc.* 10,175 303,978 Halliburton Company 13,316 567,595 Schlumberger Ltd.* 5,143 328,509 ------- 1,200,082 Publishing - 1.13% Gannett, Inc. 5,402 382,529 Mcgraw Hill Companies, Inc. 1,739 96,080 ------ 478,609 Retail Trade - 8.13% Abercrombie And Fitch Co.* 1,195 113,674 Bed, Bath & Beyond, Inc.* 2,762 98,569 Best Buy Company, Inc.* 2,924 139,621 Costco Companies, Inc.* 5,225 422,898 Gap, Inc. 5,327 354,578 Home Depot, Inc. 10,813 648,104 The accompanying notes are an integral part of the financial statements. 43 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Retail Trade - continued Kohls Corporation* 3,303 $219,443 Safeway, Inc.* 4,386 236,570 Wal Mart Stores, Inc. 21,496 988,816 Walgreen Company 8,663 232,818 ------- 3,455,092 Telecommunications - 11.74% Airtouch Communications, Inc.* 2,914 272,095 Cisco Systems, Inc.* 10,692 1,219,556 Lucent Technologies, Inc. 17,704 1,064,453 MCI Worldcom, Inc.* 11,809 970,552 Nokia Corporation* 4,104 304,466 Qwest Communications Int'l, Inc.* 6,326 540,478 Tellabs, Inc.* 5,657 619,795 ------- 4,991,394 Transportation - 0.65% Kansas City Southern Industries, Inc. 4,624 275,417 ------- TOTAL COMMON STOCKS (Cost $31,742,625) $37,961,569 ----------- SHORT TERM INVESTMENTS - 5.89% Navigator Securities Lending Trust 2,501,536 $2,501,536 SSGA Money Market Fund 1,000 1,000 ----- $2,502,536 ---------- REPURCHASE AGREEMENT - 4.80% Repurchase Agreement with State Street Bank & Trust Co. dated 04/30/99 at 4.00%, to be repurchased at $2,042,681 on 5/03/99, collateralized by $2,070,000 U.S., Treasury Notes 5.625% due 04/30/00 (valued at $2,141,156, including interest) $2,042,000 $2,042,000 ---------- TOTAL INVESTMENTS (Growth Equity Fund) (Cost $36,287,161) $42,506,105 ----------- - -------------------------------------------------------------------------------- Tax-Sensitive Equity Fund - -------------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 97.80% Apparel & Textiles - 3.76% Jones Apparel Group, Inc.* 5,500 $181,500 Tommy Hilfiger Corp.* 2,600 181,675 ------- 363,175 Banking - 1.97% Chase Manhattan Corp. 2,300 190,325 ------- Business Services - 10.11% Interim Services, Inc.* 11,000 191,125 Shared Medi Cal System 3,700 200,956 Stewart Enterprises, Inc. 15,000 298,125 Xerox Corp. 4,900 287,875 ------- 978,081 Computer Peripherals - 5.24% BMC Software, Inc.* 6,200 266,988 Computer Associates International, Inc. 5,600 239,050 ------- 506,038 Computers & Business Equipment - 7.43% Hewlett Packarg Co. 1500 118,312 Sun Microsystems, Inc.* 5,000 299,062 SCI Systems, Inc.* 7,900 300,694 ------- 718,068 Containers & Glass - 1.68% Owens Illinois, Inc.* 5,600 $162,400 -------- Drugs & Health Care - 7.78% Amgen, Inc.* 4,500 276,469 Bristol Myers Squibb Co. 1,000 63,562 Merck & Company, Inc. 1,300 91,325 Schering Plough Corp. 1,700 82,131 Steris Corp.* 5,000 88,750 Watson Pharmaceuticals, Inc.* 3,700 149,850 ------- 752,087 Electronic Components - 1.96% Intel corp. 3,100 189,681 ------- Financial Services - 5.42% Citigroup, Inc. 2,500 188,125 Federal National Mortgage Assn. 2,500 177,344 Morgan Stanley Dean Witter 1,600 158,700 ------- 524,169 Food & Drug Distribution - 4.27% Rexall Sundown, Inc.* 8,000 138,500 Richfood Holdings, Inc. 5,000 62,500 Kroger Co.* 3,900 211,819 ------- 412,819 Home Building - 1.78% Clayton Homes, Inc. 15,500 172,438 ------- Hotels & Casinos - 3.69% Carnival Group 6,500 268,125 Starwood Hotels & Resorts 2,400 88,050 ------ 356,175 Household Products - 3.76% Fort James Corp. 5,000 190,000 Leggett & Platt, Inc. 7,500 172,969 ------- 362,969 Industrial Conglomerates - 8.61% Crane Company 7,000 202,562 Ingersoll Rand Co. 4,500 311,344 United Technologies Corp. 2,200 318,725 ------- 832,631 Insurance - 11.39% Ambac Financial Group, Inc. 3500 211,312 Conseco, Inc. 8,700 274,594 Delphi Financial Group, Inc.* 5,724 178,159 Provident Companies, Inc. 4,000 157,500 Reliastar Financial Group 7,600 279,300 ------- 1,100,865 International Oil - 5.85% BP Amoco Plc 2,500 282,969 Mobil Corp. 2,700 282,825 ------- 565,794 Metal Fabrication - 2.20% Kaydon Corp. 6,300 212,625 ------- Packaged Foods & Products - 1.61% Universal Foods Corp. 7,400 155,400 ------- Real Estate - 1.79% Boston Properties, Inc. 1,000 36,313 General Growth Properties, Inc. 1,900 69,944 Prentiss Properties Trust 3,100 67,037 ------ 173,294 The accompanying notes are an integral part of the financial statements. 44 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Retail Trade - 1.88% Pier 1 Imports, Inc. 11,500 $84,812 Ross Stores, Inc. 2,100 96,469 ------ 181,281 Technology Systems - 3.23% American Power Conversion Corp.* 6,900 227,700 Diebold, Inc. 3,500 84,219 ------ 311,919 Telephone - 2.39% Bell Atlantic 4,000 230,500 ------- TOTAL COMMON STOCKS (Cost $8,694,578) $9,452,734 ---------- SHORT TERM INVESTMENTS - 0.01% SSGA Money Market Fund 1,000 $1,000 ------ Principal Value --------- ----- REPURCHASE AGREEMENT - 2.19% Repurchase Agreement with State Street Bank & Trust Co. dated 04/30/99 at 4.00%, to be repurchased at $212,071 on 05/03/99 collateralized by $175,000 U.S. Treasury Bonds, 7.625% due 11/15/22 (valued at $226,181, including interest) $212,000 $212,000 -------- TOTAL INVESTMENTS (Tax-Sensitive Equity Fund) (Cost $8,907,578) $9,665,734 ========== - -------------------------------------------------------------------------------- Growth and Income Fund - -------------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 95.45% Aerospace & Defense - 1.85% Boeing Company 52,000 $2,112,500 General Motors Corp.* 22,200 1,229,325 United Technologies Corp. 17,000 2,462,875 --------- 5,804,700 Agricultural Machinery - 0.43% Deere & Company 31,000 1,333,000 --------- Air Travel - 1.08% AMR Corporation* 44,000 3,071,750 Southwest Airlines Co. 9300 302,831 ------- 129,800 3,374,581 Banks - 7.91% The Chase Manhattan Corp. 28,100 2,325,275 Citigroup, Inc. 137,600 10,354,400 First Union Corp. 73,900 4,092,212 U.S. Bancorp 111,000 4,113,938 Wachovia Corp. 44,900 3,945,588 --------- 24,831,413 Business Services - 2.22% Automatic Data Processing, Inc. 66,000 2,937,000 First Data Corp. 75,200 3,191,300 Service Corporation International 40,900 848,675 ------- 6,976,975 Chemicals - 2.28% The Dow Chemical Co. 17,900 2,348,256 E.I. Du Pont de Nemours & Co. 68,000 4,802,500 --------- 7,150,756 Computer Peripherals - 4.08% Computer Sciences Corp.* 40,000 2,382,500 Microsoft Corp.* 128,000 10,408,000 ---------- 12,790,500 Computers & Business Equipment - 8.37% Cisco Systems, Inc.* 51,250 5,845,703 EMC Corp.* 20,000 2,178,750 Hewlett-Packard Company 38,700 3,052,462 International Business Machines Corp. 38,000 7,949,125 Lucent Technologies 52,600 3,162,575 Xerox Corp. 69,600 4,089,000 --------- 26,277,615 Drugs & Health Care - 11.96% Abbott Laboratories 88,000 4,262,500 Astrazeneca Plc 50,400 1,978,200 American Home Products Corp. 72,900 4,446,900 Baxter International, Inc. 47,600 2,998,800 Bristol-Myers Squibb Co. 47,600 3,025,575 Columbia/HCA Healthcare Corp. 99,900 2,466,281 Johnson & Johnson 36,500 3,558,750 Merck & Company, Inc. 44,800 3,147,200 Pfizer, Inc. 31,700 3,647,481 Pharmacia & Upjohn, Inc. 76,400 4,278,400 Warner-Lambert Co. 54,800 3,722,975 --------- 37,533,062 Electrical Equipment - 4.42% General Electric Co. 97,800 10,317,900 Tyco International Ltd. 43,600 3,542,500 --------- 13,860,400 Electronic Components - 3.57% Analog Devices, Inc. 30,000 1,053,750 Intel Corp. 88,000 5,384,500 Motorola, Inc. 35,300 2,828,413 Texas Instruments, Inc. 18,800 1,919,950 --------- 11,186,613 Entertainment & Recreation - 0.92% The Walt Disney Co. 90,600 2,876,550 --------- Financial Services - 5.76% Associates First Capital Corp. 102,300 4,533,169 Federal National Mortgage Association 63,000 4,469,063 Marsh & McLennan Companies, Inc. 62,000 4,746,875 Merrill Lynch & Co., Inc. 51,600 4,331,175 --------- 18,080,282 Food & Beverages - 3.05% Anheuser-Busch Companies, Inc. 46,400 3,393,000 Coca-Cola Company 27,000 1,836,000 General Mills, Inc. 3,700 270,562 Pepsico, Inc. 44,800 1,654,800 Sara Lee Corp. 108,000 2,403,000 --------- 9,557,362 Forest Products - 2.17% International Paper Co. 33,900 1,807,294 Kimberly Clark Corp. 48,000 2,943,000 Minnesota Mining & Manufacturing Co. 23,000 2,047,000 --------- 6,797,294 Hotels & Restaurants - 1.49% McDonald's Corp. 110,000 4,661,250 --------- The accompanying notes are an integral part of the financial statements. 45 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Household Products - 2.64% Colgate Palmolive Co. 18,000 $1,843,875 Gillette Company 32,800 1,711,750 Procter & Gamble Co. 50,300 4,718,769 --------- 8,274,394 Insurance-Property & Casualty - 2.07% ACE, Ltd. 75,000 2,268,750 American International Group, Inc. 36,000 4,227,750 --------- 6,496,500 Motor Vehicle Parts - 0.25% Eaton Corporation 8,700 797,681 ------- Motor Vehicles - 0.67% Ford Motor Company 33,000 2,109,937 --------- Newspapers - 1.31% Gannett, Inc. 58,000 4,107,125 --------- Non-Ferrous Metals - 0.78% Aluminum Company of America 39,200 2,440,200 --------- Petroleum - 5.99% Chevron Corp. 39,000 3,890,250 Exxon Corp. 97,100 8,065,369 Royal Dutch Petroleum Co. 88,300 5,182,106 UNOCAL Corp. 40,000 1,662,500 --------- 18,800,225 Petroleum Services - 1.44% Diamond Offshore Drilling, Inc. 32,700 1,081,144 Schlumberger, Ltd. 53,800 3,436,475 --------- 4,517,619 Photography - 0.37% Eastman Kodak Co. 15,700 1,171,612 --------- Railroads & Equipment - 0.68% Union Pacific Corp. 35,600 2,136,000 --------- Retail Trade - 6.27% Dayton Hudson Corp. 92,000 6,192,750 The GAP, Inc. 63,000 4,193,437 May Dept Stores 48,300 1,922,944 Wal-Mart Stores, Inc. 160,000 7,360,000 --------- 19,669,131 Telecommunication Services - 0.88% AT & T Corp.* 19,200 1,226,400 Cox Communications, Inc.* 19,300 1,531,937 --------- 2,758,337 Utilities-Electric - 1.64% DPL, Inc. 82,500 1,474,688 GPU, Inc. 34,800 1,326,750 Pinnacle West Capital Corp. 30,000 1,164,375 Texas Utilities Co. 30,000 1,192,500 --------- 5,158,313 Utilities-Gas & Pipeline - 0.86% Enron Corp. 18,100 1,362,025 National Fuel Gas Co. NJ 20,000 875,000 Peoples Energy Corp. 12,700 474,663 ------- 2,711,688 Utilities-Telephone - 7.10% AT & T - Liberty Media 61,500 $3,105,750 Bell Atlantic Corp. 77,192 4,448,189 BellSouth Corp. 42,000 1,879,500 MCI WorldCom, Inc.* 59,000 4,849,063 SBC Communications, Inc. 96,000 5,376,000 U.S. West, Inc. 50,000 2,615,625 --------- 22,274,127 Tobacco - 0.95% Philip Morris Companies, Inc. 85,100 2,983,819 --------- TOTAL COMMON STOCKS (Cost $176,662,271) $299,499,061 ------------ PREFERRED STOCK - 0.43% Chemicals - 0.43% Monsanto Corp. 29,500 $1,358,844 ---------- TOTAL PREFERRED STOCK $1,358,844 (Cost $1,180,000) SHORT TERM INVESTMENT - 1.97% Navigator Securities Lending Trust 6,184,920 $6,184,920 ---------- Principal Value --------- ----- REPURCHASE AGREEMENT - 2.15% Repurchase Agreement with Lehman Bros. dated 04/30/99 at 4.89% to be repurchased at $6,754,751 on 05/03/99, collateralized by U.S. Treasury Bills, 0.01% due 08/15/09 (valued at $6,920,137 including interest) $6,752,000 $6,752,000 ---------- TOTAL INVESTMENTS $313,794,825 (Growth & Income Fund) (Cost $190,779,191) - -------------------------------------------------------------------------------- Equity-Income Fund - -------------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 99.91% Banking - 15.65% Bankamerica Corp. 31,800 $2,289,600 BankBoston Corp. 19,000 931,000 The Chase Manhattan Corp. 17,200 1,423,300 Citigroup, Inc. 32,149 2,419,212 First Union Corp. 114,000 6,312,750 Fleet Financial Group, Inc. 30,600 1,317,712 J.P. Morgan & Company, Inc. 15,600 2,102,100 Mellon Bank Corp. 97,300 7,230,606 --------- 24,026,280 Business Services - 6.40% H & R Block, Inc. 37,000 1,780,625 Pitney Bowes, Inc. 115,000 8,042,813 --------- 9,823,438 Chemicals - 2.37% E.I. Du Pont De Nemours & Co. 51,500 3,637,188 --------- Drugs & Health Care - 16.94% Abbott Laboratories 12,600 610,312 American Home Products Corp. 125,600 7,661,600 Baxter International, Inc. 55,000 3,465,000 Bristol Myers Squibb Co. 101,000 6,419,813 Pharmacia & Upjohn, Inc. 140,000 7,840,000 --------- 25,996,725 The accompanying notes are an integral part of the financial statements. 46 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Electrical Equipment - 1.04% General Electric Co. 15,100 $1,593,050 ---------- Food & Beverages - 9.00% Anheuser-Busch Companies, Inc. 33,300 2,435,062 General Mills, Inc. 55,100 4,029,188 H.J. Heinz Co. 121,300 5,663,194 Quaker Oats Co. 26,000 1,678,625 --------- 13,806,069 Household Products - 2.14% Avon Products, Inc. 60,400 3,280,475 --------- Insurance - 5.89% American General Corp. 51,900 3,840,600 Marsh & McLennan Cos., Inc. 67,900 5,198,594 --------- 9,039,194 International Oil - 9.58% BP Amoco Plc 33,133 3,750,241 Chevron Corp. 29,900 2,982,525 Exxon Corp. 27,800 2,309,137 Mobil Corp. 23,600 2,472,100 Texaco, Inc. 50,700 3,181,425 --------- 14,695,428 Multi Industry - 3.04% Minnesota Mining & Manufacturing Co. 52,400 4,663,600 --------- Other Consumer Products - 0.76% Fortune Brands, Inc. 29,600 1,169,200 --------- Paper - 6.35% International Paper Co. 19,000 1,012,938 Kimberly-Clark Corp. 108,200 6,634,013 Union Camp Corp. 26,500 2,103,437 --------- 9,750,388 Photography - 2.58% Eastman Kodak Co. 53,000 3,955,125 --------- Retail Trade - 0.51% May Department Stores Co. 19,800 788,287 ------- Telephone - 15.23% Alltel Corp. 51,700 3,486,519 American Telephone & Telegraph Corp. 14,700 742,350 Ameritech Corporation 43,000 2,942,813 Bell Atlantic Corp. 112,900 6,505,862 BellSouth Corp. 13,100 586,225 GTE Corp. 33,900 2,269,181 SBC Communications, Inc. 73,468 4,114,208 U.S. West, Inc. 52,100 2,725,481 --------- 23,372,639 Tobacco - 2.43% Philip Morris Companies, Inc. 106,400 3,730,650 --------- TOTAL COMMON STOCKS (Cost $122,565,303) $153,327,736 ------------ Principal Value --------- ----- REPURCHASE AGREEMENT - 0.09% Repurchase Agreement with State Street Bank & Trust Co. dated 04/30/99 at 4.00%, to be repurchased at $145,048 on 05/03/99, collateralized by $145,000 U.S. Treasury Notes, 6.50% due 08/31/01 (valued at $152,565, including interest) $145,000 $145,000 -------- TOTAL INVESTMENTS (Equity-Income Fund) (Cost $122,710,303) $153,472,736 ============ - -------------------------------------------------------------------------------- Balanced Fund - -------------------------------------------------------------------------------- Shares Value ------ ----- COMMON STOCKS - 54.16% Aerospace & Defense - 1.17% Lockheed Martin Corp. 27,100 $1,166,994 ---------- Banking - 4.15% Chase Manhattan Corp. 6,600 546,150 Citigroup, Inc. 47,600 3,581,900 --------- 4,128,050 Broadcasting - 0.44% Time Warner, Inc. 6,300 441,000 ------- Chemicals - 4.33% Akzo Nobel NV 34,400 1,553,542 Bayer AG 49,800 2,114,871 E.I. DuPont de Nemours & Co. 9,100 642,687 ------- 4,311,100 Domestic Oil - 1.79% Phillips Petroleum Co. 35,200 1,782,000 --------- Drugs & Health Care - 19.31% Abbott Laboratories 9,500 460,156 Alza Corp.* 64,500 2,164,781 American Home Products 11,900 725,900 Baxter International, Inc. 7,000 441,000 Beckton Dickinson & Co. 24,600 914,812 Bristol Myers Squibb Co. 20,200 1,283,962 Elan Plc* 25,750 1,326,125 Glaxo Wellcome Plc 16,650 969,862 Johnson & Johnson 4,800 468,000 Eli Lilly and Co. 5,375 395,734 Mallinckrodt, Inc. 6,200 217,388 Marck KGAA 43,000 1,453,607 Merck & Company, Inc. 17,900 1,257,475 Novartis AG 400 585,436 Pfizer, Inc. 3,300 379,706 Pharmacia & Upjohn, Inc. 15,300 856,800 Sankyo Co. 25,800 541,191 Schering AG 8,125 937,720 SmithKline Beecham Plc 18,400 1,208,650 SmithKline Beecham Plc, ADR 11,300 149,426 Steris Corp.* 52,900 938,975 Synthelabo 4,600 940,302 Warner Lambert 9,000 611,438 ------- 19,228,446 Electric Utilities - 2.02% Duke Energy Co. 35,900 2,010,400 --------- Electrical Equipment - 0.89% General Electric Co. 8,400 886,200 ------- Electronics - 1.03% Intel Corp. 16,700 1,021,831 --------- Food & Beverages - 3..00% Albertson's, Inc. 12,000 618,000 Coca Cola Co. 8,100 550,800 The accompanying notes are an integral part of the financial statements. 47 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- Food & Beverages - continued% Hershey Food Corp. 3,100 $163,137 Nestle SA 500 925,149 Pepsico, Inc. 19,900 735,056 ------- 2,992,142 Gas & Pipeline Utilities - 1.07% Coastal Corp. 27,800 1,063,350 --------- Household Products - 1.29% Colgate Palmolive Co. 4,800 491,700 Dial Corp. 23,475 798,150 ------- 1,289,850 Insurance - 6.88% Allstate Corp. 37,600 1,367,700 Chubb Corp. 34,175 2,024,869 Cigna Corp. 10,600 924,187 NAC Corp. 19,100 1,040,950 XL Capital, Ltd. 24,600 1,492,913 --------- 6,850,619 Petroleum Services - 0.82% Conoco, Inc. 30,100 816,462 ------- Precious Metals - 1.97% Barrick Gold Corp. 52,600 1,058,575 Homestake Mining Co. 57,300 547,931 Placer Dome, Inc. 25,300 357,363 ------- 1,963,869 Railroads - 1.29% Canadian National Railway Co. 20,325 1,283,016 --------- Retail Trade - 0.47% American Stores Co. 14,700 463,969 ------- Telephone - 2.24% American Telephone & Telegraph 16,870 851,935 GTE Corp. 20,650 1,382,259 --------- 2,234,194 TOTAL COMMON STOCKS (Cost $51,524,574) $53,933,492 ----------- Principal Value --------- ----- U.S. TREASURY OBLIGATIONS - 34.00% U.S. Treasury Notes - 34.00% 4.25% due 11/15/03 $2,600,000 $2,497,222 4.75% due 11/15/08 5,700,000 5,444,355 5.375% due 06/30/03 1,000,000 1,004,530 5.50% due 02/28/03 1,000,000 1,008,750 5.50% due 02/15/08 3,400,000 3,425,500 5.625% due 05/15/08 500,000 507,500 5.625% due 04/30/00 1,075,000 1,081,891 5.625% due 05/15/01 1,070,000 1,080,700 5.875% due 02/15/04 650,000 667,167 5.875% due 11/15/05 750,000 771,090 6.25% due 02/15/07 1,580,000 1,663,203 6.25% due 03/30/02 5,150,000 5,301,256 6.625% due 03/31/02 1,600,000 1,661,248 6.625% due 04/30/02 4,530,000 4,706,942 6.875% due 05/15/06 2,800,000 3,041,052 --------- 33,862,406 TOTAL U.S. TREASURY OBLIGATIONS (Cost $33,640,724) $33,862,406 ----------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 1.60% Federal Home Loan Mortgage Corporation - 1.60% 6.45% due 04/29/09 $1,600,000 $1,590,992 ---------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $1,599,750) $1,590,992 ---------- FOREIGN GOVERNMENT OBLIGATIONS - 2.02% Ontario Province-2.02% 6.125% due 09/12/07 $1,330,000 $957,452 6.500% due 03/08/29 1,405,000 1,058,688 --------- 2,016,140 TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $1,884,327) $2,016,140 ---------- SHORT TERM INVESTMENTS - 3.45% Navigator Securities Lending Trust $3,437,871 $3,437,871 SSGA Money Market Fund 1,000 1,000 ----- $3,438,871 REPURCHASE AGREEMENT - 4.77% Repurchase Agreement with State Street Bank & Trust Co. dated 4/30/99 at 4.00%, to be repurchased at $4,756,585 on 05/03/99, collateralized by $4,525,000, U.S. Treasury Notes, 6.50% due 10/15/06 (valued at $4,862,325, including interest) $4,755,000 $4,755,000 ---------- TOTAL INVESTMENTS $99,596,901 (Balanced Fund) (Cost $96,843,246) - -------------------------------------------------------------------------------- Strategic Income Fund - -------------------------------------------------------------------------------- Principal Value --------- ----- CORPORATE BONDS - 43.15% Aerospace - 0.34% B.E. Aerospace, Inc., 8.00% due 03/01/08 $250,000 $248,125 -------- Banking - 3.37% Commerzbank, 10.25% due 04/28/00 AUD 940,000 652,245 European Bank Recon. & Development, 10.50% due 01/25/01 400,000 99,911 Korea Development Bank, 9.60% due 12/01/00 PLN 1,000,000 1,014,710 Nordiska Investeringsbanken, 17.75% due 04/15/02 PLN 140,000 41,024 Sudwest LB Capital Markets, 17.50% due 05/05/03 PLN 480,000 147,029 US Bk Natl Assn Minneapolis, 5.70% due 12/15/08 500,000 475,446 ------- 2,430,365 Business Services - 2.83% CSC Holdings, Inc., 10.50% due 05/15/16 500,000 602,500 Comdisco, Inc., 6.00% due 01/30/02 400,000 399,632 First Data Corp., 6.375% due 12/15/07 275,000 275,621 Iron Mountain, Inc., 10.125% due 10/01/06 500,000 541,250 The accompanying notes are an integral part of the financial statements. 48 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Principal Value --------- ----- Business Services - continued United States Leasing Capital Corp., 8.45% due 01/25/05 $200,000 $222,060 -------- 2,041,063 Chemical Products - 0.55% Revlon Worldwide Corp., Series B, zero coupon due 03/15/01 600,000 393,000 ------- Crude Petroleum & Natural Gas - 1.89% Bellwether Exploration Co., 10.875% due 04/01/07 250,000 225,625 Benton Oil & Gas Co., 11.625% due 05/01/03 200,000 154,000 Occidental Petroleum Corp., 9.25% due 08/01/19 700,000 797,622 United Refining Co., 10.75% due 06/15/07 250,000 183,750 ------- 1,360,997 Drugs & Health Care - 1.42% Dade International, Inc., 11.125% 05/01/06 500,000 557,500 Fresenius Medical Care Capital Trust, 9.00% due 12/01/06 250,000 258,750 Prime Medical Services, Inc., 8.75% due 04/01/08 500,000 466,250 ------- 1,282,500 Electronics - 0.91% Breed Technologies, Inc., 6.25% due 04/15/08 500,000 150,000 Decisionone Corp., 9.75% due 08/01/07 500,000 25,625 Protection One, Inc., 8.125% due 01/15/09, 144A 500,000 482,500 ------- 658,125 Energy & Utilities - 0.65% Costilla Energy, Inc., 10.25% due 10/01/06 500,000 175,000 High Voltage Engineering Corp., 10.5% due 08/15/04 250,000 238,125 Transamerican Energy Corp.*, 11.5% due 06/15/02 325,000 56,875 ------ 470,000 Financial Services - 3.35% ContiFinancial Corp., 8.125% due 01/01/08 500,000 380,000 Ford Motor Credit Company, 5.80% due 01/12/09 225,000 214,659 KFW International Finance, 16.30% due 06/24/03 PLN 860,000 257,228 Merrill Lynch & Co., Inc., 6.00% due 11/15/04 190,000 189,188 Navistar International Corp., 8.00% due 02/01/08 500,000 517,500 Paine Webber Group, Inc., 7.00% due 03/01/00 400,000 403,584 TP SA Fin BV, 7.75% due 12/10/08, 144A 450,000 457,817 ------- 2,419,976 Food & Beverages - 2.66% Ameriserve Food Distr, Inc., 10.125% due 07/15/07 500,000 410,000 Food & Beverages - continued Dole Foods, Inc., 6.75% due 07/15/00 $1,000,000 $1,008,680 Stroh Brewery Co., 11.10% due 07/01/06 500,000 502,500 ------- 1,921,180 Hotels & Restaurants - 0.72% Prime Hospitality Corp., 9.75% due 04/01/07 500,000 516,250 ------- Industrials - 5.78% Alvey Systems, Inc., 11.375% due 01/31/03 375,000 386,250 Berry Plastics Corp., 12.25% due 04/15/04 650,000 689,812 CFP Holdings, Inc., 11.625% due 01/15/04 250,000 208,125 Foamex, L.P., 9.875% due 05/15/07 375,000 338,438 ICG Holdings, Inc., Step up to 13.50% due 09/15/05 500,000 456,250 P&L Coal Holdings Corp., 8.875% due 05/15/08 250,000 259,375 Polymer Group, Inc., 8.75% due 03/01/08 150,000 150,000 9.00% due 07/01/07 190,000 194,750 Praxair, Inc., 6.15% due 04/15/03 500,000 497,530 Raytheon Company, 6.15% due 11/01/08 225,000 220,797 Stellex Industries, Inc., 9.50% due 11/01/07 250,000 225,000 Synthetic Industries, Inc., 9.25% due 02/15/07 25,000 26,000 Williams Scotsman, Inc., 9.875% due 06/01/07 500,000 521,875 ------- 4,174,202 Insurance - 0.70% Aetna Services, Inc., 7.625% due 08/15/26 500,000 508,475 ------- Leisure Time - 1.70% Harrah's, Inc., 7.875% due 12/15/05 500,000 505,000 Mohegan Tribal Gaming Authority, 8.75% due 01/01/09, 144A 225,000 233,437 Park Place Entertainment Corp., 7.875% due 12/15/05 500,000 491,250 ------- 1,229,687 Metal & Metal Products - 0.36% Renco Metals, Inc., 11.50% due 07/01/03 250,000 261,250 ------- Other - 5.01% Hines Horticulture, Inc., Series B, 11.75% due 10/15/05 325,000 353,843 The Holt Group, Inc., 9.75% due 01/15/06, 144A 500,000 329,375 Huntsman Corp., 9.50% due 07/01/07, 144A 350,000 346,500 Kindercare Learning Centre, Inc., 9.50% due 02/15/09 250,000 265,000 The accompanying notes are an integral part of the financial statements. 49 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Principal Value --------- ----- Other - continued La Petite Academy, Inc., 10.0% due 05/15/08 $375,000 $375,000 LIN Holdings Corp., Zero Coupon due 03/01/08 500,000 350,000 SC International Services, Inc., 9.25% due 09/01/07 500,000 535,000 Service Corporation International, Inc., 6.00% due 12/15/05 400,000 378,752 United International Holdings, Inc., 10.75% due 02/15/08 1,000,000 685,000 ------- 3,618,470 Pollution Control - 0.68% Allied Waste Industries, Inc., 7.875% due 01/01/09 500,000 487,500 ------- Publishing - 1.06% Big Flowers Press Holdings, Inc., 8.625% due 12/01/08, 144A 500,000 500,000 Hollinger International, Inc., 9.25% due 03/15/07 250,000 261,250 ------- 761,250 Real Estate - 1.39% HMH Properties, Inc., 7.875% due 08/01/08 500,000 482,500 Radnor Holdings Corp., 10.00% due 12/01/03 500,000 517,500 ------- 1,000,000 Retail Trade - 1.71% Cole National Group, Inc., 8.625% due 08/15/07 250,000 247,500 Jitney Jungle Stores, Inc., 12.00% due 03/01/06 250,000 278,125 Musicland Group, Inc., 9.875% due 03/15/08 250,000 253,750 Staples, Inc., 7.125% due 08/15/07 450,000 450,747 ------- 1,230,122 Steel - 0.60% Murrin Murrin Holdings, 9.375% due 08/31/07 500,000 430,000 ------- Telecommunication Services - 4.31% Adelphia Communications Corp., 9.50% due 02/15/04 46,998 49,348 9.875% due 03/01/07 175,000 191,625 Century Communications Corp., 8.875% due 01/15/07 175,000 182,875 Step up to due 01/15/08 250,000 118,750 GTE Corp., 6.94% due 04/15/28 200,000 200,264 International Cabletel, Inc., 11.50% due 02/01/06 1,000,000 872,500 L3 Communications Corp., 8.00% due 08/01/08 250,000 254,687 Nextel Communications, 9.95% due 02/15/08 250,000 187,500 9.75% due 08/15/04 400,000 416,000 SFX Broadcasting, Inc., 10.75% due 05/15/06 164,000 183,680 Telecommunication Services - continued Telewest Communication Plc, Step up to 11.00% due 10/01/07 $500,000 $450,000 -------- 3,107,229 Transportation - 0.80% Stena AB, 10.5% due 12/15/05 250,000 260,625 TFM SA de CV, Step up to 11.75% due 06/15/09 500,000 318,750 ------- 579,375 TOTAL CORPORATE BONDS (Cost $33,100,329) $31,129,141 ----------- U.S. TREASURY OBLIGATIONS - 1.95% U.S. Treasury Bonds - 1.14% 5.25% due 02/15/29 $370,000 $347,338 5.50% due 08/15/28 280,000 266,832 6.125% due 11/15/27 200,000 207,032 ------- 821,202 U.S. Treasury Notes - 0.81% 5.250% due 08/15/03 200,000 199,906 5.625% due 05/15/08 180,000 182,700 6.375% due 03/31/01 200,000 204,594 ------- 587,200 TOTAL U.S. TREASURY OBLIGATIONS (Cost $1,473,911) $1,408,402 ---------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 7.26% Federal Home Loan Banks - 0.63% 5.89% due 07/24/00 $450,000 $453,375 Federal Home Loan Mortgage Corporation - 1.97% 6.50% due 12/01/99** 700,000 696,059 8.50% due 05/01/08 351,246 366,754 10.00% due 05/15/20 328,765 357,223 ------- 1,420,036 Government National Mortgage Association - 1.05% 7.50% due 07/15/27 312,054 321,610 7.50% due 10/15/27 346,318 356,923 7.50% due 10/15/27 77,348 79,717 ------ 758,250 Federal National Mortgage Association - 0.09% 13.00% due 11/15/15 56,801 67,025 ------ Federal National Mortgage Association - Interest Only - 1.42% Interest Only due 03/17/20, REMIC 6,230,832 151,864 Interest Only due 10/17/36, REMIC 12,692,601 335,973 Interest Only due 02/25/35, REMIC 6,485,550 482,713 11.565% due 06/15/21 222,408 57,596 ------ 1,028,146 Federal National Mortgage Association - CMO - 1.46% 8.80% due 01/25/19, REMIC 440,928 470,827 10.40% due 04/25/19, REMIC 78,186 85,076 7.387% due 08/17/03 492,789 495,633 ------- 1,051,536 Student Loan Marketing Association - 0.64% 7.20% due 11/09/00 450,000 462,375 ------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $5,383,701) $5,240,743 ---------- The accompanying notes are an integral part of the financial statements. 50 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Principal Value --------- ----- FIXED INCOME - OTHER - 12.27% Collateralized Mortgage Obligations - 5.07% Mid State Trust VI, Class A, 7.34% due 07/01/35 $1,472,881 $1,510,160 Green Tree Financial Corp., 7.07% due 09/15/07 2,108,952 2,149,149 --------- 3,659,309 Commercial Mortgage Backed Securities - 2.80% Commercial Mortgage Asset Trust, 7.35% due 08/17/13 1,200,000 1,175,916 DLJ Commercial Mortgage Corp., Step Up due 05/10/23 9,708,123 428,536 DLJ Commercial Mortgage Corp., Step Up due 11/12/31 7,667,512 413,601 ------- 2,018,053 Residential Subordinate Securities - 4.40% First Union Residential Securities, 7.00% due 08/25/28 246,634 231,083 GE Capital Management Services, Inc. 6.75% due 11/25/28 REMIC 994,436 902,759 PNC Mortgage Securities Corp., 6.734% due 07/25/28 420,680 383,458 6.75% due 05/25/28 346,976 328,510 6.772% due 03/25/29 498,967 480,412 6.838% due 05/25/28 470,791 434,936 6.904% due 04/25/29 449,556 413,951 ------- 3,175,109 TOTAL FIXED INCOME - OTHER (Cost $8,991,018) $8,852,471 ---------- FOREIGN GOVERNMENT OBLIGATIONS - 25.93% Republic of Argentina - 3.55% 11.00% due 12/04/05 $500,000 $495,625 11.375% due01/30/17 2,100,000 2,067,450 --------- 2,563,075 Federal Republic of Brazil - 3.55% 5.00% due 04/15/14 3,705,373 2,561,339 --------- National Republic of Bulgaria - 0.94% 5.875% due 07/28/11 1,000,000 675,000 ------- Government of Costa Rica - 0.34% Series B, 6.25% due 05/21/15 300,000 246,000 ------- Republic of Ecuador - 1.33% 3.75% due 02/27/15 1,611,358 664,685 4.00% due 02/28/25 700,000 296,625 ------- 961,310 Federal Republic of Germany - 0.46% 5.625% due 01/04/28 280,000 330,696 ------- EUR Republic of Greece - 1.58% 7.60% due 01/22/02 GRD 69,000,000 227,015 8.70% due 04/08/05 GRD 28,900,000 105,257 8.90% due 04/01/03 GRD 145,200,000 508,671 11.00% due 02/25/00 GRD 90,400,000 299,622 ------- 1,140,565 Ivory Coast - 1.31% 2.00% due 03/31/18 3,000,000 945,000 ------- Principal Value Government of Mexico - 3.60% 6.25% due 12/31/19, Series B $1,950,000 $1,543,035 6.25% due 12/31/19, Series W-A 250,000 197,825 10.375% due 02/17/09 800,000 857,000 ------- 2,597,860 Government of Morocco - 2.16% 6.062% due 01/01/09 1,904,762 1,554,857 --------- New South Wales Treasury Corp - 0.10% 5.20% due 02/21/07 AUD 100,000 $72,098 ------- Kingdom of Norway - 0.53% 5.20% due 06/16/99 NOK 3,000,000 383,301 ------- Government of Panama - 1.09% 4.00% due 07/17/14 1,000,000 783,800 ------- Government of Peru - 1.50% Steo-up to 4.50% due 03/07/17 1,600,000 1,080,000 --------- Russia - 0.00% Vnesheconomobank, 6.625% due 12/15/15 29,467 2,136 Vnesheconomobank, 6.625% due 12/15/15 8,419 631 --- 2,767 Republic of Slovenia - 0.51% 5.375% due 05/27/05 EUR 330,000 369,041 ------- Kingdom of Sweden - 0.19% 6.50% due 05/05/08 SEK 1,000,000 139,481 ------- Republic of Venezuela - 3.19% 6.00% due 03/31/07 952,382 746,477 9.25% due 09/15/27 2,200,000 1,556,610 --------- 2,303,087 TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $17,242,003) $18,709,277 ----------- Shares Value ------ ----- PREFERRED STOCK - 0.00% TCR Holdings-Class B 570 $34 TCR Holdings-Class C 314 18 TCR Holdings-Class D 827 44 TCR Holdings-Class E 1,711 108 --- TOTAL PREFERRED STOCK $204 ---- (Cost $204) RIGHTS & WARRANTS - 0.13% Crude Petroleum & Natural Gas - 0.04% Terex Corporation, Zero Coupon due 05/15/02 2,000 $29,250 Foreign Governments - 0.09% United Mexican States exp. 02/17/09 800 4,090 United Mexican States due 2003 1,500,000 0 Republic of Argentina exp. 12/03/99 1,900 57,238 ------ 61,328 Other - 0.00% BCP Holdings Corp. exp. 04/15/04 500 0 The accompanying notes are an integral part of the financial statements. 51 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- 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 $18,002) $90,586 ------- SHORT TERM INVESTMENT - 5.96% Navigator Securities Lending Trust 4,299,280 $4,299,280 ---------- Principal Value --------- ----- REPURCHASE AGREEMENT - 3.35% Repurchase Agreement with State Street Bank & Trust Co. dated 04/30/99 at 4.85%, to be repurchased at $2,420,979 on 05/03/99, collateralized by $1,965,000 U. S. Treasury Bonds, 7.65% due 11/15/22 (valued at $2,539,695, including interest) $2,420,000 $2,420,000 ---------- TOTAL INVESTMENTS (Strategic Income Fund) (Cost $73,768,649) $72,150,104 =========== - -------------------------------------------------------------------------------- Investment Quality Bond Fund - -------------------------------------------------------------------------------- Principal Value --------- ----- CORPORATE BONDS - 42.44% Banking - 7.44% BankAmerica Corp., 9.50% due 04/01/01 $114,000 $21,527 Credit National, 7.00%, due 11/14/05 150,000 152,363 Export-Import Bank of Korea, 6.375% due 02/15/06 40,000 37,356 First Financial Caribbean Corp., 7.84% due 10/10/06 135,000 135,907 NBD Bancorp, 8.25% due 11/01/24 300,000 349,173 Republic New York Corp., 9.75% due 12/01/00 155,000 164,370 Royal Bank of Scotland Group Plc, 6.40% due 04/01/09 150,000 147,924 U.S. Bancorp, 7.50% due 06/01/26 300,000 328,626 Western Financial Savings, 8.875% due 08/01/07 25,000 19,250 ------ 1,456,496 Broadcasting - 0.16% Emmis Communications Corp., 8.125% due 03/15/09, 144A 5,000 5,000 Granite Broadcasting Corp., 8.875% due 05/15/08 15,000 14,962 Jacor Communications Co., 8.75% due 06/15/07 10,000 10,650 ------ 30,612 Building Products - 0.11% Falcon Building Products, Inc., Step-up due 06/15/07 20,000 16,375 Falcon Holding Group LP, 8.375% due 04/15/10 5,000 5,112 ----- 21,487 Business Services - 0.07% AMSC Acquisition, Inc., 12.25% due 04/01/08 $5,000 $3,700 Iron Mountain, Inc., 8.75% due 09/30/09 10,000 10,225 ------ 13,925 Chemical Products - 1.49% Arco Chemical Co., 9.80% due 02/01/20 5,000 4,915 Huntsman Corp., 9.50% due 07/01/07, 144A 10,000 9,850 ICI North America, Inc., 8.875% due 11/15/06 65,000 71,550 ICI Wilmington, Inc., 6.95% due 09/15/04 175,000 178,903 Revlon Consumer Products Corp., 8.625% due 02/01/08 5,000 4,800 Revlon Worldwide Corp., Series B, zero coupon due 03/15/01 10,000 6,550 Sovereign Specialty Chemicals, 9.50% due 08/01/07 15,000 15,525 ------ 292,093 Crude Petroleum & Natural Gas - 1.77% Conoco, Inc., 5.90% due 04/15/04 45,000 44,612 Conoco, Inc., 6.95% due 04/15/29 80,000 78,197 Costilla Energy, Inc., 10.25% due 10/01/06 20,000 7,200 Cross Timbers Oil Co., 9.25% due 04/01/07 10,000 10,050 Dailey Petroleum Services Corp., 9.50% due 02/15/08 25,000 7,813 Energy Corporation of America, 9.50% due 05/15/07 20,000 18,600 Enron Corp., 6.75% due 09/01/04 100,000 102,335 Kelley Oil & Gas Corp., 14.00% due 04/15/03, 144A 10,000 10,200 Newfield Exploration Co., 7.45% due 10/15/07 45,000 42,986 Petroleos Mexicanos, 8.85% due 09/15/07 25,000 23,812 ------ 345,805 Drugs & Health Care - 2.43% Allegiance Corp., 7.00% due 10/15/26 325,000 329,238 Owens & Minor, Inc., 10.875% due 06/01/06 20,000 21,800 Tenet Healthcare Corp., 7.875% due 01/15/03 110,000 110,275 Universal Hospital Services, Inc., 10.25% due 03/01/08 15,000 13,875 ------ 475,188 Electric Utilities - 0.64% The Cleveland Electric Illuminating Company, 7.19% due 07/01/00 125,000 125,943 ------- Financial Services - 7.71% AAG Holding, Inc., 6.875% due 06/01/08 100,000 95,863 The accompanying notes are an integral part of the financial statements. 52 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Principal Value --------- ----- Financial Services - continued Amerus Capital I, 8.85% due 02/01/27 $100,000 $86,800 Amresco Communications, Inc., 9.875% due 03/15/05 10,000 8,100 Amvescap Plc, 6.60% due 05/15/05 150,000 147,821 BanPonce Financial Corp., 6.75% due 08/09/01 250,000 252,235 Beneficial Corp., 8.40% due 05/15/08 5,000 4,318 EOP Operating LP, 6.50% due 01/15/04 95,000 94,145 Japan Financial Corp., 9.125% due 10/11/00 200,000 209,414 KFW International Financial, Inc., 9.125% due 05/15/01 200,000 213,384 Liberty Financial Companies, Inc., 6.75% due 11/15/08 65,000 65,118 Neenah Corp., 11.125% due 05/01/07 10,000 10,150 Olympic Financial, Ltd., 11.5% due 03/15/07 10,000 8,100 Pindo Deli Financial Mauritius, Ltd., 10.75% due 10/01/07 10,000 6,525 RBF Finance, 11.375% due 03/15/09, 144A 10,000 10,550 Sun Canada Financial Co., 7.25% due 12/15/15, 144A 200,000 206,322 Tembec Finance Corp., 9.875% due 09/30/05 10,000 10,662 ------ 1,509,507 Food & Beverages - 0.50% B & G Foods Corp., 9.625% due 08/01/07 10,000 9,975 Del Monte Foods Co., Step-up, due 12/15/07 16,000 12,200 Nash Finch Company, 8.50% due 05/01/08 10,000 9,100 Joseph E. Seagram & Sons, Inc., 7.50% due 12/15/18 65,000 66,260 ------ 97,535 Homebuilders - 0.05% Engle Homes, Inc., 9.25% due 02/01/08 10,000 9,937 ----- Industrials - 8.01% Abraxas Petroleum Corp., 11.50% due 11/01/04 10,000 5,775 Accuride Corp., 9.25% due 02/01/08 10,000 10,200 Acetex Corp., 9.75% due 10/01/03 10,000 9,450 Acindar Industria, Argentina, 11.25% due 02/15/04 10,000 8,050 Advanced Micro Devices, Inc., 11.00% due 08/01/03 25,000 26,000 American Pad & Paper Co., 13.00% due 11/15/05 20,000 12,200 Associates Corp. of North America, 5.75% due 11/01/03 120,000 118,952 Industrials - continued Beverly Enterprises, 9.00% due 02/15/06 10,000 10,050 Cincinnati Milacron, Inc., 7.875% due 05/15/00 130,000 130,999 DecisionOne Corp.1, 9.75% due 08/01/07 10,000 513 Dime Capital Trust I, 9.33% due 05/06/27 150,000 160,905 Disco SA, 9.875% due 05/15/08 10,000 8,900 Domtar, Inc., 9.50% due 08/01/16 10,000 10,717 Duane Reade, Inc., 9.25% due 02/15/08 25,000 25,938 Dura Operations Corp., 9.00% due 05/01/09, 144A 5,000 5,062 EchoStar DBS Corp., 9.375% due 02/01/09, 144A 30,000 31,125 Fairchild Semiconductor Corp., 10.125% due 03/15/07 10,000 10,100 Fisher Scientific Int'l., Inc., 9.00% due 02/01/08 10,000 10,125 Frontiervision Holding, L.P., Step-up, due 09/15/07 5,000 4,413 Gaylord Container Corp., 9.375% due 06/15/07 5,000 4,775 Globalstar LP, 10.75% due 11/01/04 25,000 16,250 Grove Worldwide LLC, 9.25% due 05/01/08 15,000 12,450 Grupo Int'l Durango SA, 12.625% due 08/01/03 15,000 15,000 Guitar Center Management Co., Inc., 11.00% due 07/01/06 17,000 18,084 Iridium Operations LLC, 11.25% due 07/15/05 25,000 7,500 K & F Industries, Inc., 9.25% due 10/15/07 10,000 10,325 KN Energy, Inc., 6.65% due 03/01/05 100,000 101,711 LaRoche Industries, Inc., 9.50% due 09/15/07 5,000 3,675 LDM Technologies, Inc., 10.75% due 01/15/07 20,000 20,600 Moog, Inc., Series B, 10.00% due 05/01/06 25,000 26,031 MTL, Inc., 10.0% due 06/15/06 10,000 10,000 Multicanal, 13.125% due 04/15/09, 144A 20,000 20,350 News America Holdings, Inc., 9.25% due 02/01/13 250,000 299,242 NTL, Inc., Step-up due 10/01/08, 144A 20,000 14,100 Pacifica Papers, Inc., 10.00% due 03/15/09, 144A 5,000 5,188 Packaging Corporation of America, 9.625% due 04/01/09, 144A 5,000 5,188 P&L Coal Holdings Corp., 9.625% due 05/15/08 35,000 36,312 The accompanying notes are an integral part of the financial statements. 53 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Principal Value --------- ----- Industrials -- continued Pioneer Americas Acquisiton Corp., 9.25% due 06/15/07 $10,000 $8,525 Plains Resources, Inc., Series B, 10.25% due 03/15/06 10,000 10,175 Psinet, Inc., 11.50% due 11/01/08 5,000 5,550 Psinet, Inc., 10.00% due 02/15/05 20,000 20,950 Repap New Brunswick, Inc., 10.625% due 04/15/05 25,000 20,250 Rifkin Acquisitions Partners, L.P., 11.125% due 01/15/06 10,000 11,212 Royster Clark, Inc., 10.25% due 04/01/09, 144A 10,000 10,150 SCL Aereo Santiago, 6.95% due 07/01/12, 144A 100,000 97,679 Standard Pacific Corp., 8.50% due 06/15/07 15,000 14,700 Stater Bros. Holdings. Inc., 9.00% due 07/01/04 5,000 5,050 Sullivan Graphics, Inc., 12.75% due 08/01/05 20,000 21,200 United Industries Corp., 9.875% due 04/01/09, 144A 5,000 5,188 Verio, Inc., 10.375% due 04/01/05 15,000 15,975 Verio, Inc., 11.25% due 12/01/08, 144A 10,000 11,250 Wesco Distribution, Inc., 9.125% due 06/01/08 15,000 15,600 YPF SA, 8.00% due 02/15/04 70,000 69,300 ------ 1,569,009 Insurance - 4.37% Conseco, Inc., 6.40% due 02/10/03 100,000 96,315 Conseco, Inc., 6.80% due 06/15/05 50,000 48,565 Equitable Companies, Inc., 7.00% due 04/01/28 100,000 100,120 Florida Windstorm Underwriting, 7.125% due 02/25/19, 144A 180,000 181,825 Jackson National Life Insurance Co., 8.15% due 03/15/27, 144A 100,000 107,798 Ohio National Life Insurance Co., 8.50% due 05/15/26, 144A 150,000 163,272 Security Benefit Life Co., 8.75% due 05/15/16, 144A 150,000 157,932 ------- 855,827 Leisure Time - 0.42% Argosy Gaming Co., 13.25% due 06/01/04 10,000 11,325 Aztar Corp., 8.875% due 05/15/07, 144A 10,000 10,025 AMC Entertainment, Inc., 9.50% due 03/15/09 10,000 9,850 Bell Sports, Inc., 11.00% due 08/15/08 10,000 10,200 Fitzgerald's Gaming Corp., 12.25% due 12/15/04 5,000 2,125 Loew's Cineplex Entertainment Corp., 8.875% due 08/01/08 10,000 10,025 Station Casinos, Inc., 8.875% due 12/01/08, 144A 15,000 15,525 True Temper Sports, Inc., 10.875% due 012/01/08, 144A 15,000 14,025 ------ 83,100 Metal Products - 0.03% Silgan Holdings, Inc., 9.00% due 06/01/09 5,000 5,150 ----- Office Products - 0.49% Boise Cascade Office Products Co., 7.05% due 05/15/05 100,000 95,990 ------ Paper - 0.53% Boise Cascade Corp., 9.90% due 10/01/01 100,000 104,532 ------- Retail Trade - 0.53% J.C. Penney, Inc., 7.40% due 04/01/37 100,000 103,704 ------- Steel - 0.10% AK Steel Corp., 7.875% due 02/15/09, 144A 15,000 15,037 Armco, Inc., 9% due 09/15/07 5,000 5,213 ----- 20,250 Telecommunication Services - 3.02% Adelphia Communications Corp., 8.375% due 02/01/08 5,000 5,112 Allbritton Communications Co., 8.875% due 02/01/08 20,000 20,500 Bendek Communications Corp., Step-up due 05/15/06 5,000 3,813 BTI Telecommunications Corp., 10.50% due 09/15/07 20,000 18,650 Charter Communications Holdings, 8.625% due 04/01/09, 144A 15,000 15,356 Century Communications, Step-up, due 01/15/08 * 35,000 16,625 Concentric Network Corp., 12.75% due 12/15/07, 144A 10,000 11,363 e.Spire Communications, Inc., Step-up, due 04/01/06 * 15,000 10,050 e.Spire Communications, Inc., Step-up, due 07/01/08 * 10,000 4,700 GST Telecommunications, Inc., Step-up due 11/15/07 * 20,000 21,625 Innova S. de R.L., 12.875% due 04/01/07 20,000 17,400 Intermedia Communications, Inc., 8.875% due 11/01/07 25,000 25,125 Intermedia Communications, Inc., 8.6% due 06/01/08 10,000 9,950 ITC Deltacom, Inc., 8.875% due 03/01/08 10,000 10,250 ITC Deltacom, Inc., 9.75% due 11/15/08 5,000 5,325 IXC Communications, Inc., The accompanying notes are an integral part of the financial statements. 54 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Principal Value --------- ----- Telecommunication Services - continued 9.00% due 04/15/08 $20,000 $20,100 KMC Telecom. Holdings, Inc., Step-up due 02/15/08, 144A 50,000 28,500 Level 3 Communications, Inc., 8.00% due 08/01/08 5,000 5,094 Level 3 Communications, Inc., 9.125% due 05/01/08 5,000 5,112 LIN Holdings Corp., Step-up due 03/01/08 * 30,000 21,000 MGC Communications, Inc., 13.0% due 10/01/04 5,000 4,725 Nextlink Communications, Inc., Step-up due 04/15/08 * 30,000 19,350 Paging Network, Inc., 10.125% due 08/01/07 15,000 12,150 RCN Corporation, Step-up due 07/01/08 15,000 9,600 RSL Communications Plc, 9.125% due 03/01/08 10,000 9,750 Telecommunications Techniques Co., LLC, 9.75% due 05/15/08 15,000 15,375 Tele-Communications, Inc., 9.25% due 04/15/02 200,000 218,918 Time Warner Telecommunications, LLC, 9.75% due 07/15/08 10,000 10,800 Viatel, Inc., 11.25% due 04/15/08 15,000 15,675 ------ 591,993 Telephone - 2.14% Classic Cable, Inc., 9.875% due 08/01/08, 144A 5,000 5,350 MobileMedia Communications, Inc. 9.375% due 11/01/07 /\ 50,000 4,500 Nextel Communications, Inc., Step up to 9.75% due 10/31/07 60,000 46,200 U.S. West Capital Funding, Inc., 6.25% due 07/15/05 150,000 150,933 WorldCom, Inc., 7.55% due 04/01/04 200,000 212,240 ------- 419,223 Transportation - 0.30% Johnstown American Industries, Inc., 11.75% due 08/15/05 20,000 21,700 Southern Railway Company, 8.75% due 10/15/03 30,000 32,688 Werner Holding, Inc., 10.00% due 11/15/07 5,000 5,125 ----- 59,513 Utilities - 0.13% GCI, Inc., 9.75% due 08/01/07 25,000 25,812 ------ TOTAL CORPORATE BONDS (Cost $8,360,958) $8,312,631 ---------- U.S. TREASURY OBLIGATIONS - 22.53% U.S. Treasury Bonds - 22.53% 7.50% due 11/15/16 $250,000 $292,812 9.25% due 02/15/16 125,000 169,199 11.875% due 11/15/03 250,000 314,883 12.00% due 08/15/13 2,500,000 3,634,375 ---------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $4,493,965) $4,411,269 ---------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 16.10% Federal Home Loan Mortgage Corp. - 5.36% 6.00% due 11/01/13 - 09/25/22 $768,161 $747,251 6.50% due 06/15/23 100,000 100,375 7.00% due 09/15/21 200,000 201,562 ------- 1,049,188 Federal National Mortgage Association - 7.95% 5.50% due 08/01/28 351,149 330,189 6.00% due 11/01/28 295,545 286,401 6.18% due 07/01/08 19,843 19,822 6.25% due 11/25/19 500,000 503,125 6.27% due 11/01/07 54,433 54,713 6.295% due 06/01/08 19,833 19,958 6.30% due 01/01/08 19,749 19,884 6.305% due 02/01/08 197,586 201,309 6.34% due 01/01/0/ 19,622 19,805 6.39% due 01/01/06 19,343 19,568 6.43% due 01/01/08 19,748 20,041 6.981% due 06/01/07 19,595 20,478 7.04% due 03/01/07 19,636 20,581 7.28% due 10/01/06 19,585 20,753 ------ 1,556,627 Government National Mortgage Association - 2.79% 7.00% due 06/15/23 - 10/15/23 538,693 547,787 ------- TOTAL U.S. GOVERNMENT AGENCY $3,153,602 OBLIGATIONS (Cost $3,108,833) ========== MUNICIPAL SECURITIES - 1.75% Other Municipal Securities - 1.75% Philadelphia, PA, Retirement System Authority, 5.59% due 04/15/05 $170,000 $166,214 Phoenix, AZ, Civic Improvement Corp., 6.30% due 07/01/08 125,000 123,364 Southern California Public Power Authority, 6.93% due 05/15/17 50,000 52,208 ------ TOTAL MUNICIPAL SECURITIES $341,786 (Cost $350,856) ======== FIXED INCOME - OTHER - 2.48% Other Asset Backed Securities - 2.48% Aesop Funding II LLC, 6.40% due 10/20/03, 144A $100,000 $101,192 First Union Lehman Bros., Series 1997, Class A2, 6.60% due 05/18/07 200,000 201,100 Continental Airlines, 6.90% due 01/02/18 100,000 101,452 Continental Airlines pass-through, 6.648% due 09/15/17 69,282 68,460 Western Financial Grantor Trust, Series 1995, Class A1, 7.10% due 07/01/00 12,890 12,959 ====== TOTAL FIXED INCOME - OTHER $485,163 (Cost $484,510) ======== The accompanying notes are an integral part of the financial statements. 55 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Shares Value ------ ----- PREFERRED STOCKS - 0.28% Concentric Network, PIK 13.5% 5 $5,462 Fairfield Mfg. Co., Inc., PIK 11.25% 25 25,625 Primedia, Inc., 8.625% 145 14,101 SF Holdings Group, Inc.*, 13.75% 2 7,200 SF Holdings Group, Inc. * 144A 74 $148 Viatel, Inc. 144A, CV 10.0% 7 1,682 TOTAL PREFERRED STOCKS (Cost $63,278) $54,218 ------- WARRANTS - 0.01% Arch Communications Group, Rts. Exp. 05/14/99 12,527 0 American Mobile Satellite, 144A, Exp. 04/01/08 5 151 Concentric Network Corp.*, Exp. 12/15/07 5 1,421 KMC Telecom. Holdings, Inc.*, Exp. 04/15/08 50 131 --- TOTAL WARRANTS (Cost $0) $1,703 ------ SHORT TERM INVESTMENT - 14.41% Navigator Securities Lending Trust $2,821,919 $2,821,919 ---------- ---------- TOTAL INVESTMENTS (Investment Quality Bond Fund) (Cost $19,684,319) $19,582,291 =========== - ------------------------------------------------------------------------------- National Municipal Bond Fund - ------------------------------------------------------------------------------- Principal Value --------- ----- LONG-TERM INVESTMENTS - 98.05% Alabama - 1.87% Alabama Housing Finance Authority Single Family Mortgage Revenue Collateralized Home Mortgage Program, Series B-2, 6.40%, 04/01/25 $275,000 $287,394 -------- California - 6.93% California Housing Finance Agency Revenue, Series H, 6.15%, 08/01/16 1,000,000 1,065,200 --------- Florida - 1.64% Florida State Dept. of Transportation Right of Way, Series A, 5%, due 07/01/16 250,000 251,472 ------- Illinois - 8.65% Illinois Health Facilities Authority Revenue (Hospital Association Project), 7.00%, 02/15/22 200,000 220,610 Chicago, Illinois, Water Revenue, 6.50%, 11/01/15 500,000 594,865 Chicago, Illinois, Skyway Toll Bridging Revenue, 5.375%, 01/01/16 500,000 514,200 ------- 1,329,675 Iowa - 1.09% Iowa Finance Authority Hospital Facility Revenue Refunding (Trinity Regional Hospital Project), 7.00%, 07/01/12 150,000 166,572 ------- Louisiana - 3.36% Louisiana Public Facilities Authority Hospital Revenue Refunding (Touro Infirmary Project), Series B, 6.125%, 08/15/23 500,000 516,920 ------- Maine - 0.17% Maine State Housing Authority Mortgage Purchase, Series A-4, 6.375%, 11/15/12 25,000 26,197 ------ Massachusetts - 3.53% Massachusetts State Special Obligation Revenue, Series A, 5.50%, 06/01/13 500,000 543,000 ------- Michigan - 3.39% Detroit, Michigan, City School District, Series C, 5.25%, 05/01/17 500,000 520,165 ------- Missouri - 3.59% Missouri State Health & Educational Facilities Authority Revenue, 6.25%, 02/15/11 500,000 552,016 ------- Nevada - 7.78% Clark County Nevada School District 5.50%, 06/15/11 500,000 541,435 Nevada Housing Division, Single-Family Program, B-2, 6.95%, 10/01/26 285,000 304,149 Nevada Housing Division, Single-Family Program, Issue C, 6.35%, 10/01/12 330,000 350,840 ------- 1,196,424 New Jersey - 3.68% New Jersey Economic Development Authority Water Facilities Revenue (New Jersey American Water Company, Incorporated Project), 6.875%, 11/01/34 500,000 566,190 ------- New York - 20.66% Long Island Power Authority, New York Electric Systems Revenue, 5.125%, 04/01/12 250,000 258,790 New York State Local Government Assistance Corporation, Series A, 6.00%, 04/01/16 1,000,000 1,090,880 New York State Dormitory Authority Revenue, State University Educational Facilities, Series A, 6.25%, 05/15/08 500,000 555,670 New York State Environmental Facilities Corporation Pollution Control Revenue Refunding (IBM Corporation Project), 7.125%, 07/01/12 580,000 612,155 New York State Mortgage Agency Revenue, Series 40-A, 6.35%, 04/01/21 630,000 658,898 ------- 3,176,393 Pennsylvania - 7.23% Delaware Valley, Pennsylvania, Regional Finance Authority Series A, 5.50%, 08/01/28 500,000 536,555 The accompanying notes are an integral part of the financial statements. 56 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Principal Value --------- ----- Pennsylvania - continued Philadelphia, Pennsylvania, Water & Wastewater Revenue, 6.25%, 08/01/12 $500,000 $575,225 -------- 1,111,780 South Carolina - 3.46% Greenville Hospital Systems Hospital Facilities Revenue, Series B, 5.70%, 05/01/12 500,000 531,455 ------- Tennessee - 3.25% Humphreys County, Tennessee, Industrial Development Board Solid Waste Disposal Revenue (E.I. Du Pont De Nemours & Company Project), 6.70%, 05/01/24 450,000 498,758 ------- Texas - 4.44% Texas State Veterans Housing Assistance, 6.80%, 12/01/23 75,000 80,354 Port Arthur, Texas, Navy District, Zero Coupon, 03/01/10 1,000,000 602,550 ------- 682,904 Virginia - 2.05% Virginia State Housing Development Authority Commonwealth Mortgage, Subseries I-1, 6.55%, 07/01/17 300,000 315,738 ======= Washington - 3.51% Washington State General Obligation, Series C, 5.50%, 07/01/16 500,000 539,975 ------- Wisconsin - 7.77% Wisconsin Housing & Economic Development Authority Home Ownership Revenue, Series D, 6.10%, 07/01/24 115,000 118,053 Wisconsin State Health & Educational Facilities Authority Revenue, Mercy Hospital of Janesville, Incorporated, 6.60%, 08/15/22 1,000,000 1,076,940 --------- 1,194,993 TOTAL LONG TERM INVESTMENTS (Cost $14,267,274) $15,073,221 =========== SHORT TERM INVESTMENTS - 1.95% Louisiana - 1.30% East Baton Rouge Parish, Louisiana, Solid Waste Revenue (Exxon Project) 4.35% due 12/01/28 $200,000 $200,000 Virginia - 0.65% King George County, Virginia, Industrial Development Authority, Exempt Facility Revenue (Birchwood Power Partners), 4.30% due 03/01/27 100,000 100,000 ------- TOTAL SHORT TERM INVESTMENTS (Cost $300,000) $300,000 -------- TOTAL INVESTMENTS (National Municipal Bond Fund) (Cost $14,567,274) $15,373,221 =========== - -------------------------------------------------------------------------------- U.S. Government Securities Fund - -------------------------------------------------------------------------------- Principal Value --------- ----- U.S. TREASURY OBLIGATIONS - 6.30% U.S. Treasury Bonds - 2.06% 5.250% due 02/15/29 $1,000,000 $938,750 6.375% due 08/15/27 800,000 854,376 ------- 1,793,126 --------- U.S. Treasury Notes - 4.24% 4.750% due 11/15/08 465,000 444,145 5.625% due 12/31/02 2,000,000 2,026,560 5.750% due 04/30/03 1,200,000 1,221,372 --------- 3,692,077 --------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $5,470,866) $5,485,203 ---------- U.S. GOVERNMENT AGENCY OBLIGATIONS - 76.05% U.S. Department of Veteran Affairs - 0.60% 7.25% due 10/15/10 REMIC $527,170 $526,838 -------- Federal Home Loan Banks - 1.71% 5.80% due 09/02/08** 1,500,000 1,490,160 --------- Federal Home Loan Mortgage Corporation - 30.58% 6.00% due 12/01/99 - 10/01/28 9,498,228 9,226,056 6.247% due 03/25/21 REMIC** 3,000,000 2,988,150 6.50% TBA** 4,000,000 3,977,480 7.00% due 10/01/12 6,478,736 6,620,426 7.00% due 04/15/21 1,005,812 1,015,870 8.00% due 06/01/08 165,877 171,796 8.25% due 07/01/06 122,627 126,433 8.50% due 05/01/08 157,367 162,585 9.50% due 08/01/20 604,178 643,812 10.0% due 03/01/16 1,544,420 1,672,823 11.75% due 08/01/13 32,431 36,250 ------ 26,641,681 Federal National Mortgage Association - 37.57% 6.50% TBA** 5,400,000 5,364,522 6.50% due 12/01/03 - 08/01/27 2,167,768 2,158,773 6.527% due 05/25/30 REMIC 2,750,000 2,775,410 6.783% due 01/17/03 REMIC 1,009,480 1,022,724 6.793% due 12/28/28 REMIC 2,340,759 2,311,721 7.00% TBA** 1,000,000 1,013,120 7.00% due 05/01/26 - 03/01/29 12,217,223 13,409,984 8.00% due 08/01/04 29,364 29,702 8.25% due 03/25/06 REMIC 675,000 718,875 8.50% due 08/01/02 55,522 57,236 11.00% due 02/01/15 371 410 11.50% due 04/01/19 191,598 214,507 12.00% due 02/01/16 - 04/01/16 1,223,869 1,423,531 12.50% due 07/01/15 900,868 1,063,024 13.00% due 01/01/99 782,952 923,884 14.50% due 11/01/14 202,064 240,962 ------- 32,728,385 Government National Mortgage Association - 5.59% 7.50% TBA** 1,000,000 1,030,620 7.50% due 04/15/02 - 09/15/27 949,255 976,182 7.75% due 04/15/04 44,457 45,682 8.00% due 11/15/06 - 02/15/08 31,355 32,739 9.00% due 03/20/16 - 06/20/17 1,350,897 1,441,548 10.25% due 03/15/01 21,834 22,295 11.00% due 03/15/00 - 09/20/15 26,093 27,596 The accompanying notes are an integral part of the financial statements. 57 NORTH AMERICAN FUNDS PORTFOLIO OF INVESTMENTS - April 30, 1999 (Unaudited) - continued (showing percentage of total value of investments) - -------------------------------------------------------------------------------- Principal Value --------- ----- Government National Mortgage Association - continued 11.25% due 10/20/15 $9,875 $10,655 11.50% due 08/20/00 - 09/20/15 375,984 418,992 12.50% due 09/15/14 41,179 47,264 13.00% due 01/15/11 - 06/15/15 390,940 450,142 13.25% due 07/15/14 39,637 45,236 13.50% due 11/15/12 - 02/15/13 34,606 40,142 15.00% due 07/15/11 - 09/15/12 77,218 92,616 15.50% due 08/15/11 - 12/15/11 151,165 177,520 16.00% due 11/15/11 9,547 11,539 ------ 4,870,768 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $66,543,125) $66,257,832 ----------- REPURCHASE AGREEMENTS - 17.65% Repurchase Agreement with State Street Bank & Trust Co.dated 4/30/99 at 4.85%, to be repurchased at $15,378,213 on 5/03/99, collateralized by $12,470,000 U.S. Treasury Bonds, 7.625% due 11/15/22 (valued at $16,117,044 including interest) $15,372,000 $15,372,000 ----------- TOTAL INVESTMENTS (U.S. Government Securities Fund ) (Cost $87,385,991) $87,115,035 =========== - -------------------------------------------------------------------------------- Money Market Fund - -------------------------------------------------------------------------------- Principal Value --------- ----- COMMERCIAL PAPER - 47.51% Anheuser Busch, Inc., 4.77% due 05/20/99 $1,000,000 $997,482 B P America, Inc., 4.78% due 07/12/99 1,000,000 990,440 Bank of Montreal, 4.79% due 07/12/99 1,000,000 990,420 Bayer Corp., 4.80% due 05/07/99 1,000,000 999,200 Walt Disney Co., 4.74 % due 06/08/99 1,000,000 994,997 Emerson Electric, 4.76% due 05/06/99 1,000,000 999,340 General Electric Capital Corp., 4.84% due 08/05/99 1,000,000 987,093 Goldman Sachs Group LP, 4.78% due 06/22/99 1,000,000 993,096 J.P. Morgan & Co., Inc., 4.80% due 07/12/99 1,000,000 990,400 Paccar Financial Corp., 4.77% due 05/03/99 1,000,000 999,735 Procter & Gamble Co., 4.82% due 05/27/99 1,000,000 996,519 ------- TOTAL COMMERCIAL PAPER 10,938,722 U.S. GOVERNMENT AGENCY OBLIGATIONS - 42.77% Student Loan Marketing Association - 13.02% 4.566% due 08/02/99 $3,000,000 $2,998,585 Federal Home Loan Banks - 12.97% 4.69% disc note due 06/02/99 3,000,000 2,987,493 Federal Home Loan Mortgage Corporation - 8.67% 4.74% disc note due 05/17/99 $2,000,000 $1,995,787 Federal National Mortgage Association - 8.11% 4.72% disc note due 09/13/99 1,900,000 1,866,370 TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $9,848,235 U.S. TREASURY OBLIGATIONS - 2.16% U.S. Treasury Bills - 2.16% 4.375% due 06/10/99 $500,000 $497,569 -------- TOTAL US TREASURY OBLIGATIONS $497,569 REPURCHASE AGREEMENT - 7.56% Repurchase Agreement with State Street Bank & Trust Co. dated 04/30/99 at 4.80%, to be repurchased at $1,740,696 on 05/03/99, collateralized by $1,385,000 U.S. Treasury Bonds, 8.125% due 08/15/99 (valued at $1,800,196, including interest) $1,740,000 $1,740,000 ---------- ---------- TOTAL INVESTMENTS (Money Market Fund) $23,024,526 ================================================================================ Key to Currency Abbreviations ----------------------------- AUD - Australian Dollar EUR - Euro Currency GBP - Great British Pound GRD - Greek Drachma HKD - Hong Kong Dollar ITL - Italian Lira JPY - Japanese Yen NOK - Norwegian Krone PLN - Polish Zloty SGD - Singapore Dollar SEK - Swedish Krona CHF - Swiss Franc Key to Security Abbreviations and Legend ---------------------------------------- ADR - American Depository Receipt REMIC Real Estate Mortgage Investment Conduit TBA - To Be Announced 1 Non-Income producing, issuer is in default of interest payments /\ - Non-Income producing, issuer is in bankruptcy and is in default of interest payments * - Non-Income producing ** - Purchased on a forward commitment (Note 2) The accompanying notes are an integral part of the financial statements. 58 NORTH AMERICAN FUNDS Notes to Financial Statements - -------------------------------------------------------------------------------- 1. ORGANIZATION OF THE FUND. North American Funds (the "Fund") is an open-end, diversified management investment company. The Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended. 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, 1999, the Fund offered the following fifteen portfolios: the International Small Cap Fund ("International Small Cap"), the International Equity Fund, (formerly the International Growth and Income Fund) ("International Equity"), the Global Equity Fund ("Global Equity"), the Emerging Growth Fund ("Emerging Growth"), the Small/Mid Cap Fund ("Small/Mid Cap"), the Growth Equity Fund ("Growth Equity"), the Tax-Sensitive Equity Fund ("Tax-Sensitive Equity"), the Growth and Income Fund ("Growth and Income"), the Equity-Income Fund ("Equity-Income"), the Balanced Fund ("Balanced"), the Strategic Income Fund ("Strategic Income"), the Investment Quality Bond Fund ("Investment Quality Bond"), the National Municipal Bond Fund ("National Municipal Bond"), the U.S. Government Securities Fund ("U.S. Government Securities") and the Money Market Fund ("Money Market"). The Fund offers Class A, Class B and Class C shares. Class A shares are sold with a front-end sales charge of 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. Class C shares will automatically convert to Class A shares of the same portfolio ten 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. CypressTree Asset Management Corporation, Inc. ("CAM"), a wholly-owned subsidiary of CypressTree Investments, Inc. ("CypressTree"), serves as investment adviser and principal underwriter for the Fund. CypressTree Funds Distributors, Inc. ("CFD"), also a wholly-owned subsidiary of CypressTree, serves as distributor for the Fund. CypressTree, located in Boston, Massachusetts, was formed in 1996 to acquire, advise and distribute mutual funds through broker-dealers, banks and other intermediaries. 2. SIGNIFICANT ACCOUNTING POLICIES. The policies described below are followed when preparing the Funds' financial statements. These policies are in accordance with generally accepted accounting principles ("GAAP"). 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 Exchange. 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, National 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 59 NORTH AMERICAN FUNDS Notes to Financial Statements - -------------------------------------------------------------------------------- Note 2 - continued 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. Forward Commitments. The Fund may make forward commitments to purchase and sell securities. 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 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, 1999, the forward commitments were $700,491 in Strategic Income and $15,264,827 in U. S. Government Securities. Mortgage Dollar Rolls. Strategic Income and U. S. Government Securities 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. 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. Income generated from the investment of cash collateral 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, 1999, the value of the securities loaned amounted to $2,708,802, $62,318, $12,016,379, $7,985,067, $2,419,915, $5,052,259, $3,286,961, $4,091,457 and $2,743,665 in International Small Cap, International Equity, Global Equity, Small/Mid Cap, Growth Equity, Growth and Income, Balanced, Strategic Income and Investment Quality Bond, respectively. At April 30, 1999, the value of collateral amounted to $2,854,376, $65,020, $12,498,705, $8,163,172, $2,501,536, $6,184,920, $3,437,871, $4,299,280 and $2,821,919 in International Small Cap, International Equity, Global Equity, Small/Mid Cap, Growth Equity, Growth and Income, Balanced, Strategic Income and Investment Quality 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, National Municipal Bond, U.S. Government Securities and Money Market, semi-annually to shareholders of International Equity and Growth and 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, 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 60 NORTH AMERICAN FUNDS Notes to Financial Statements - ------------------------------------------------------------------------------- Note 2 - continued 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, 1999, capital loss carryforwards available to offset future recognized gains were approximately:
Capital Loss Carryforwards Expiration Year --------------------------------------------------------------------------------- Portfolio 2002 2003 2004 2005 2006 - ----------------------------- --------------- -------------- ------------- ------------- ------------- Emerging Growth ........... -- -- -- -- $ 39,153 International Small Cap ... -- -- $ 54,060 $ 517,432 85,758 Investment Quality Bond ... $ 329,026 -- -- -- -- National Municipal Bond ... -- $ 24,157 -- -- -- Tax-Sensitive Equity ...... -- -- -- -- 754,731 U. S. Government Securities -- 1,062,756 -- -- -- Money Market .............. -- -- -- 1,702 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. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. 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. 3. CAPITAL SHARES. Share activity for the period ended April 30, 1999, is as follows:
Class A Class B Class C --------------------------- --------------------------- ----------------------------- Shares Capital Shares Capital Shares Capital ------------- ------------- ------------- ------------- -------------- -------------- International Small Cap - ----------------------- Sold ............................ 14,337 $ 217,760 39,393 $ 599,088 28,923 $ 425,517 Redeemed ........................ (32,921) (498,476) (112,880) (1,678,786) (113,485) (1,682,597) ----------- ------------- ----------- ------------- ------------ ------------- Net increase/(decrease) .... (18,584) ($ 280,716) (73,487) ($ 1,079,698) (84,562) ($ 1,257,080) =========== ============= =========== ============= ============ ============= International Equity - -------------------- Sold ............................ 44,568 $ 470,473 124,961 $ 1,343,439 47,999 $ 516,392 Reinvestment of distributions ... 1,100 11,388 3,861 39,697 2,310 23,747 Redeemed ........................ (78,998) (839,393) (210,903) (2,228,672) (232,924) (2,501,947) ----------- ------------- ------------ ------------ ------------ ------------- Net increase/(decrease) .... (33,330) ($ 357,532) (82,081) ($ 845,536) (182,615) ($ 1,961,808) =========== ============= ============ ============ ============ ============= Global Equity - ------------- Sold ............................ 736,692 $ 11,522,849 86,493 $ 1,370,894 1,004,336 $ 16,065,892 Reinvestment of distributions ... 142,681 2,268,622 131,730 2,068,161 255,619 4,026,003 Redeemed ........................ (1,386,005) (21,676,363) (293,210) (4,634,129) (1,545,793) (24,640,152) ----------- ------------- ------------ ------------- ------------ ------------- Net increase/(decrease) .... (506,632) ($ 7,884,892) (74,987) ($ 1,195,074) (285,838) ($ 4,548,257) =========== ============= ============ ============= ============ =============
NORTH AMERICAN FUNDS Notes to Financial Statements - -------------------------------------------------------------------------------- Note 3 - continued
Class A Class B Class C ---------------------------- ---------------------------- ----------------------------- Shares Capital Shares Capital Shares Capital ------------ ------------ ------------ ------------ ------------ ------------ Emerging Growth - --------------- Sold ............................... 10,230 $ 98,482 41,868 $ 405,631 12,174 $ 118,083 Redeemed ........................... (8,545) (85,642) (19,133) (187,511) (8,679) (83,840) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... 1,685 $ 12,840 22,735 $ 218,120 3,495 $ 34,243 ============ ============ ============ ============ ============ ============ Small/Mid Cap - ------------- Sold ............................... 68,303 $ 1,182,713 187,319 $ 3,203,614 290,082 $ 4,951,464 Reinvestment of distributions ...... 25,158 411,088 78,912 1,259,456 86,436 1,382,112 Redeemed ........................... (86,688) (1,555,526) (145,799) (2,467,810) (284,924) (4,842,825) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... 6,773 $ 38,275 120,432 $ 1,995,260 91,594 $ 1,490,751 ============ ============ ============ ============ ============ ============ Growth Equity - ------------- Sold ............................... 73,206 $ 1,439,476 167,282 $ 3,273,956 266,161 $ 5,165,431 Reinvestment of distributions ...... 14,236 259,959 39,479 708,254 45,769 820,177 Redeemed ........................... (59,451) (1,158,167) (87,015) (1,701,369) (96,658) (1,852,848) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... 27,991 $ 541,268 119,746 $ 2,280,841 215,272 $ 4,132,760 ============ ============ ============ ============ ============ ============ Tax-Sensitive Equity - -------------------- Sold ............................... 38,290 $ 365,774 149,158 $ 1,418,610 112,652 $ 1,076,588 Redeemed ........................... (278,734) (2,635,282) (60,653) (591,678) (105,115) (1,049,293) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... (240,444) ($ 2,269,508) 88,505 $ 826,932 7,537 $ 27,295 ============ ============ ============ ============ ============ ============ Growth and Income - ----------------- Sold ............................... 343,593 $ 9,099,146 594,552 $ 15,490,924 819,587 $ 21,578,467 Reinvestment of distributions ...... 64,033 1,620,044 114,011 2,851,439 176,942 4,443,012 Redeemed ........................... (308,817) (8,135,157) (282,439) (7,345,340) (561,168) (14,721,810) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... 98,809 $ 2,584,033 426,124 $ 10,997,023 435,361 $ 11,299,669 ============ ============ ============ ============ ============ ============ Equity-Income - ------------- Sold ............................... 152,605 $ 2,661,039 105,729 $ 1,812,358 223,840 $ 3,881,085 Reinvestment of distributions ...... 171,602 2,870,904 159,351 2,648,405 397,370 6,644,038 Redeemed ........................... (769,040) (13,112,260) (375,207) (6,342,543) (1,172,042) (19,991,852) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... (444,833) ($ 7,580,317) (110,127) ($ 1,881,780) (550,832) ($ 9,466,729) ============ ============ ============ ============ ============ ============ Balanced - -------- Sold ............................... 126,769 $ 1,361,173 74,458 $ 806,777 248,041 $ 2,709,845 Reinvestment of distributions ...... 124,734 1,332,156 143,215 1,528,102 483,803 5,230,024 Redeemed ........................... (127,102) (1,366,678) (246,745) (2,657,075) (567,104) (6,195,990) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... 124,401 $ 1,326,651 (29,072) ($ 322,196) 164,740 $ 1,743,879 ============ ============ ============ ============ ============ ============ Strategic Income - ---------------- Sold ............................... 302,244 $ 2,706,851 418,673 $ 3,813,599 132,881 $ 1,202,158 Reinvestment of distributions ...... 40,975 369,639 72,475 653,417 95,893 864,720 Redeemed ........................... (779,605) (7,001,802) (721,380) (6,500,903) (731,362) (6,581,523) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... (436,386) ($ 3,925,312) (230,232) ($ 2,033,887) (502,588) ($ 4,514,645) ============ ============ ============ ============ ============ ============ Investment Quality Bond - ----------------------- Sold ............................... 50,541 $ 532,195 127,326 $ 1,354,701 90,918 $ 958,814 Reinvestment of distributions ...... 14,016 148,058 9,643 101,835 11,433 120,721 Redeemed ........................... (69,837) (734,037) (144,964) (1,526,554) (77,813) (817,244) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... (5,280) ($ 53,784) (7,995) ($ 70,018) 24,538 $ 262,291 ============ ============ ============ ============ ============ ============ National Municipal Bond - ----------------------- Sold ............................... 1,985 $ 19,366 31,289 $ 317,752 52,868 $ 537,917 Reinvestment of distributions ...... 5,850 59,421 4,824 48,994 6,060 61,536 Redeemed ........................... (25,685) (260,914) (36,044) (366,231) (80,258) (814,883) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... (17,850) ($ 182,127) 69 $ 515 (21,330) ($ 215,430) ============ ============ ============ ============ ============ ============
62 NORTH AMERICAN FUNDS Notes to Financial Statements - -------------------------------------------------------------------------------- Note 3 - continued
Class A Class B Class C ----------------------------- ----------------------------- ----------------------------- Shares Capital Shares Capital Shares Capital ------------- ------------- ------------- ------------- ------------- ------------- U.S. Government Securities - -------------------------- Sold ............................... 348,846 $ 3,443,801 204,183 $ 2,023,108 1,469,492 $ 14,620,547 Reinvestment of distributions ...... 79,419 792,530 20,056 199,983 22,564 224,961 Redeemed ........................... (883,475) (8,768,253) (641,984) (6,409,541) (1,497,923) (14,906,807) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... (455,210) ($ 4,531,922) (417,745) ($ 4,186,450) (5,867) ($ 61,299) ============ ============ ============ ============ ============ ============ Money Market - ------------ Sold ............................... 19,379,544 $ 19,380,971 7,066,942 $ 7,067,400 13,880,271 $ 13,881,326 Reinvestment of distributions ...... 157,442 157,441 78,226 78,226 133,681 133,681 Redeemed ........................... (19,551,941) (19,551,941) (8,091,196) (8,091,196) (14,476,218) (14,476,218) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) ....... (14,955) ($ 13,529) (946,028) ($ 945,570) (462,266) ($ 461,211) ------------ ------------ ------------ ------------ ------------ ------------
Share activity for the year ended October 31, 1998, 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 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 - -------------------- 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) ============ ============ ============ ============ ============ ============ Emerging Growth - --------------- Sold ............................... 22,245 $ 229,241 30,970 $ 308,715 27,355 $ 289,054 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 ============ ============ ============ ============ ============ ============ 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 ============ ============ ============ ============ ============ ============ 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 ============ ============ ============ ============ ============ ============
63 NORTH AMERICAN FUNDS Notes to Financial Statements - -------------------------------------------------------------------------------- Note 3 - continued
Class A Class B Class C ------------------------- ---------------------------- ---------------------------- Shares Capital Shares Capital Shares Capital ------------ ------------ ------------ ------------ ------------ ------------ Growth and 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 ============ ============ ============ ============ ============ ============ 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 ============================================================================================ 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) ============ ============ ============ ============ ============ ============ 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 ============ ============ ============ ============ ============ ============
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, 1999: Purchases Sales ---------------------------------------- --------------------------------------- Portfolio U.S. Government Other Issues U.S. Government Other Issues ------------------- ------------------ ---------------- ----------------- --------------------- International Small Cap................... ------ $3,234,208 ------ $3,255,670 International Equity...................... ------ 26,606,287 ------ 29,962,576 Global Equity............................. ------ 19,612,743 ------ 37,512,864 Emerging Growth .......................... ------ 751,812 ------ 571,444 Small/Mid Cap............................. ------ 41,086,396 ------ 41,720,963 Growth Equity............................. ------ 30,754,064 ------ 25,641,816 Tax-Sensitive Equity ..................... ------ 4,200,754 ------ 5,629,710 Growth and Income......................... ------ 38,247,989 ------ 26,332,356
64 NORTH AMERICAN FUNDS Notes to Financial Statements - -------------------------------------------------------------------------------- Note 4 - continued
Purchases Sales -------------------------------------- ------------------------------------- Portfolio U.S. Government Other Issues U.S. Government Other Issues - ------------------------------------------ ----------------- ----------------- ----------------- ----------------- Equity-Income............................. ------ $87,362,789 ------ $111,028,899 Balanced.................................. $57,779,319 39,250,147 $31,388,958 72,576,881 Strategic Income.......................... 4,860,734 88,323,356 4,023,910 102,364,100 Investment Quality Bond................... 1,243,224 3,029,847 2,351,123 1,570,207 National Municipal Bond................... ------ 3,644,722 ------ 3,845,210 U.S. Government Securities................ 134,992,859 ------ 143,674,981 ------
At April 30, 1999, 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 ............... $ 11,312,464 $ 3,811,228 $ 4,345,243 ($534,015) International Equity .................. 24,984,277 1,274,320 1,862,915 (588,595) Global Equity ......................... 86,631,835 20,464,469 25,438,955 4,974,486) Emerging Growth ....................... 839,919 101,527 164,636 (63,109) Small/Mid Cap ......................... 41,057,593 3,411,915 5,305,419 (1,893,504) Growth Equity ......................... 33,785,948 6,218,917 6,619,897 (400,980) Tax-Sensitive Equity .................. 8,907,814 757,921 1,293,526 (535,605) Growth and Income ..................... 184,923,005 122,688,511 126,071,290 (3,382,779) Equity-Income ......................... 122,873,961 30,601,415 31,019,269 (417,854) Balanced .............................. 93,906,790 2,338,774 4,444,710 (2,105,936) Strategic Income ...................... 70,228,755 (2,312,395) 1,681,710 (3,994,105) Investment Quality Bond ............... 16,903,536 (143,164) 255,088 (398,252) National Municipal Bond ............... 14,567,274 805,947 807,739 (1,792) U. S. Government Securities ........... 87,390,737 (275,701) 365,531 (641,232)
5. INVESTMENT ADVISORY AGREEMENTS. The Fund maintains an Investment Advisory Agreement with CAM ("the Adviser"), pursuant to approval by the Fund's Board of Trustees and Fund shareholders. 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 $50,000,000 Between First and $200,000,000 Excess over Portfolio $50,000,000 $200,000,000 and $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% Emerging Growth....................................... .950% .950% .950% .950% Small/Mid Cap......................................... .925% .900% .875% .850% Growth Equity......................................... .900% .850% .825% .800% Tax-Sensitive Equity.................................. .850% .800% .775% .700% Growth and Income..................................... .725% .675% .625% .550% Equity-Income......................................... .750% .650% .550% .550% Balanced.............................................. .775% .725% .675% .625% Strategic Income...................................... .750% .700% .650% .600%
65 NORTH AMERICAN FUNDS Notes to Financial Statements - -------------------------------------------------------------------------------- Note 5 - continued
Between Between $50,000,000 $200,000,000 First and and $500,000,000 Excess over Portfolio $50,000,000 $200,000,000 $500,000,000 - -------------------- -------------- ------------------ ----------------- ------------ Investment Quality Bond............................... .600% .600% .525% .475% National Municipal Bond............................... .600% .600% .600% .600% U.S. Government Securities............................ .600% .600% .525% .475% Money Market.......................................... .200% .200% .200% .145%
For the period ended April 30, 1999, CAM paid aggregate subadvisory fees of $1,724,886. In addition, CAM retained net investment advisory fees of $1,879,478 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 Portfolio Subadviser Subadviser by CAM by Adviser --------------- -------------------- --------------- ----------------- International Small Cap ................ $ 50,019 .65% $ 30,780 .40% International Equity ................... 64,909 .50% 51,929 .40% Global Equity .......................... 273,472 .47% 248,677 .43% Emerging Growth ........................ 2,877 .64% 1,396 .31% Small/Mid Cap .......................... 105,493 .52% 80,376 .40% Growth Equity .......................... 85,637 .50% 68,509 .40% Tax-Sensitive Equity ................... 24,657 .45% 21,917 .40% Growth and Income ...................... 368,642 .27% 545,163 .40% Equity-Income .......................... 323,349 .39% 273,920 .33% Balanced ............................... 170,431 .35% 194,503 .40% Strategic Income ....................... 124,702 .33% 149,739 .37% Investment Quality Bond ................ 19,328 .23% 32,214 .37% National Municipal Bond ................ 19,742 .25% 27,638 .35% U.S. Government Securities ............. 83,211 .22% 138,684 .38% Money Market ........................... 8,417 .08% 14,033 .12%
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. 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 .......................................... 0.500% 0.500% 0.500% ------ ------ ------ Expense limitation ...................................... 1.550% 1.550% 1.550% ====== ====== ====== Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000% International 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%
66 NORTH AMERICAN FUNDS Notes to Financial Statements - -------------------------------------------------------------------------------- Note 5 - continued
Portfolio Class A Class B Class C -------------------- -------------------- -------------------- -------------------- Global 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% Emerging Growth - --------------- Management fees ......................................... 0.950% 0.950% 0.950% Other expenses .......................................... 0.400% 0.400% 0.400% ----- ----- ----- Expense limitation ...................................... 1.350% 1.350% 1.350% ===== ===== ===== Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000% Small/Mid Cap - ------------- Management fees ......................................... 0.925% 0.925% 0.925% Other expenses .......................................... 0.400% 0.400% 0.400% ----- ----- ----- Expense limitation ...................................... 1.325% 1.325% 1.325% ===== ===== ===== Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000% Growth Equity - ------------- Management fees ......................................... 0.900% 0.900% 0.900% Other expenses .......................................... 0.400% 0.400% 0.400% ----- ----- ----- Expense limitation ...................................... 1.300% 1.300% 1.300% ===== ===== ===== Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000% 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% Growth and Income - ----------------- Management fees ......................................... 0.725% 0.725% 0.725% Other expenses .......................................... 0.265% 0.265% 0.265% ----- ----- ----- Expense limitation ...................................... 0.990% 0.990% 0.990% ===== ===== ===== Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000% Equity-Income - ------------- Management fees ......................................... 0.750% 0.750% 0.750% Other expenses .......................................... 0.270% 0.270% 0.270% ----- ----- ----- Expense limitation ...................................... 1.020% 1.020% 1.020% ===== ===== ===== Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000% Balanced - -------- Management fees ......................................... 0.775% 0.775% 0.775% Other expenses .......................................... 0.265% 0.265% 0.265% ----- ----- ----- Expense limitation ...................................... 1.040% 1.040% 1.040% ===== ===== ===== Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000% Strategic Income - ---------------- Management fees ......................................... 0.750% 0.750% 0.750% Other expenses .......................................... 0.400% 0.400% 0.400% ----- ----- ----- Expense limitation ...................................... 1.150% 1.150% 1.150% ===== ===== ===== Rule 12b-1 fees ......................................... 0.350% 1.000% 1.000% Investment Quality Bond - ----------------------- 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% 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%
67 NORTH AMERICAN FUNDS Notes to financial Statements - --------------------------------------------------------------------------------
Note 5, continued Portfolio Class A Class B Class C -------------------- ---------------- -------------------- -------------------- 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.................................. 0.300% 0.300% 0.300% ------ ------ ------ Expense limitation.............................. 0.500% 0.500% 0.500% ====== ====== ======
In accordance with the Investment Advisory agreement, the Adviser, in addition to providing advisory services, provides accounting and administrative services for which CAM charged $721,184 to the Fund, before reimbursement based on expense limitations, for the period ended April 30, 1999. 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. On September 15, 1998, the Fund entered into an agreement with Fleet National 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, 1999. 8. COMMITMENTS. At April 30, 1999, International Small Cap, International Equity, Global Equity, and Strategic Income 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, 1999, were as follows:
Net Contracts Unrealized to In Exchange Settlement Appreciation Deliver For Date Value (Depreciation) ----------------- ----------------- --------------- ----------- --------------- International Small Cap - ----------------------- Sales Euro....................... 48,604 $51,564 5/03/99 $51,345 $219 ============ International Equity - -------------------- Sales Swiss Franc ............... 1,062,490 $ 748,908 5/20/99 $ 697,954 $ 50,954 Australian Dollar ......... 492,216 313,000 07/01/99 325,792 (12,792) Euro ...................... 1,844,925 2,074,123 5/20/99 1,951,549 122,574 Japanese Yen .............. 14,597,400 120,000 5/20/99 122,571 (2,571) Japanese Yen .............. 235,934,928 2,004,000 6/17/99 1,988,324 15,676 Singapore Dollar .......... 487,270 283,000 5/24/99 282,662 338 ------------- ------------ ------------ $5,543,031.00 $5,368,852 13,443,179 ------------- ------------ ------------ Purchases $720,088 CHF 1,062,490 5/20/99 $697,954 (22,134) 318,660 AUD 492,216 5/20/99 325,792 7,132 1,991,246 EUR 1,844,925 5/20/99 1,951,549 (39,696) 122,461 JPY 14,597,400 5/20/99 122,571 109 995,380 JPY 117,967,454 6/17/99 994,162 (1,218) 281,700 SGD 478,270 5/24/99 282,662 962 -------------- ------------ ------------ $4,429,535 $4,374,690 ($54,845) -------------- ------------ ------------ $119,334 ============
68 NORTH AMERICAN FUNDS Notes to Financial Statements - -------------------------------------------------------------------------------- Note 8, continued
Net Contracts Unrealized to In Exchange Settlement Appreciation Deliver For Date Value (Depreciation) --------------- --------------- -------------- --------------- --------------- Global Equity - ------------- Sales Euro ........................ 7,100,000 $ 7,752,134 10/12/99 $ 7,583,436 $ 168,698 Japanese Yen ................ 58,508,832 491,712 5/06/99 489,942 1,770 ----------- =========== ----------- $ 8,243,846 $ 8,073,378 $ 170,468 ----------- ----------- =========== Strategic Income - ---------------- Sales Euro ........................ 2,445,068 $ 2,744,174 5/14/99 $ 2,585,354 $ 158,820 Purchases $ 1,370,348 EUR 1,257,488 5/14/99 1,329,637 ($ 40,711) 575,246 EUR 539,123 5/28/99 570,582 (4,664) ========== =========== ----------- $1,954,594 $ 1,900,219 ($ 45,375) ---------- ----------- ----------- $ 113,445 ===========
69 Trustees Bradford K. Gallagher, Chairman William F. Achtmeyer Donald B. Allen William F. Devin Kenneth J. Lavery Officers Bradford K. Gallagher, President Joseph T. Grause, Jr., Vice President and Treasurer John I. Fitzgerald, Secretary Distributor CypressTree Funds Distributors, Inc. 286 Congress Street Boston, MA 02210 Adviser CypressTree Asset Management Corporation, Inc. 125 High 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 One Post Office Square Boston, MA 02109 North American Funds Shareholder Service 286 Congress Street Boston, MA 02210 800-872-8037 151 NAF0499:90310 Bulk Third Class U.S. Postage Paid Permit No. 19 Hudson, MA -----END PRIVACY-ENHANCED MESSAGE-----