United States
                    Securities and Exchange Commission
                          Washington, D.C. 20549

                                Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies




                                 811-7047

                   (Investment Company Act File Number)


                           Marshall Funds, Inc.

            (Exact Name of Registrant as Specified in Charter)



                           1000 N. Water Street
                            Milwaukee, WI 53202


                              (414) 287-8658
                      (Registrant's Telephone Number)


                              John M. Blaser
                      M&I Investment Management Corp
                           1000 N. Water Street
                            Milwaukee, WI 53202
                  (Name and Address of Agent for Service)
             (Notices should be sent to the Agent for Service)






                     Date of Fiscal Year End: 8/31/04


            Date of Reporting Period: Six Months Ended 2/29/04







Item 1.     Reports to Stockholders

[Logo of Marshall Funds]

The Marshall Funds Family

Semi-Annual Report

The Institutional Class of Shares

(Class I)

* Marshall International Stock Fund

FEBRUARY 29, 2004

February 29, 2004 (unaudited)

Portfolio of Investments

International Stock Fund

	Description		Shares	Value
Common Stocks -- 95.7%
	Australia -- 2.3%
	News Corp. Ltd.(2)		768,200	$	7,213,218
	WMC Resources Ltd.(1)		507,800		2,049,078
					9,262,296
	Brazil -- 3.7%
	Companhia Cervajaria Brahma, ADR		77,700		2,090,130
	Companhia Vale Do Rio Doce, ADR		72,600		4,203,540
	Petroleo Brasileiro SA, ADR		118,900		3,709,680
	Tele Norte Leste Participacoes S.A., ADR		83,300		1,212,015
	Unibanco Uniao de Bancos Brasileiros SA, GDR		167,500		3,810,625
					15,025,990
	Canada -- 1.0%
	Precision Drilling Corp.(1)		88,534		4,243,435
	Cayman Islands-- 0.8%
	SINA.com(1)		75,000		3,313,575
	China -- 1.1%
	China Petroleum and Chemical Corp. (Sinopec)		10,770,000		4,531,140
	Denmark -- 2.0%
	Dampskibsselskabet Svendborg AS, Class B		989		8,322,303
	Finland -- 0.5%
	Nokia Oyj(2)		97,900		2,147,373
	France -- 1.8%
	AXA(2)		85,800		1,972,703
	Credit Agricole SA(2)		124,300		3,201,209
	Groupe Danone		11,501		2,007,547
					7,181,459
	Germany -- 4.9%
	Deutsche Bank AG(2)		52,500		4,506,931
	Metro AG(2)		95,000		4,256,173
	Siemens AG		96,300		7,434,309
	T-Online International AG(1)		282,913		3,861,287
					20,058,700
	Greece -- 0.3%
	Hellenic Telecommunication Organization SA		87,000		1,309,716
	Hong Kong -- 4.6%
	Esprit Holdings Ltd.		1,459,500		5,756,028
	Henderson Land Development Co. Ltd.		685,000		3,475,907
	Sun Hung Kai Properties		437,000		4,294,606
	Swire Pacific Ltd., Class A		719,000		5,080,097
					18,606,638
	Indonesia -- 2.2%
	PT Bank Central Asia		6,073,500	$	2,621,913
	PT Telekomunikasi Indonesia		7,280,900		6,286,289
					8,908,202
	Ireland -- 0.7%
	Bank of Ireland		207,300		2,733,869
	Israel -- 1.0%
	Teva Pharmaceutical Industries Ltd., ADR		62,000		4,030,000
	Italy -- 1.3%
	Banca Intesa SPA		463,100		1,722,735
	Sanpaolo IMI SpA(2)		280,900		3,617,134
					5,339,869
	Japan -- 26.7%
	Canon, Inc.		87,000		4,245,068
	Credit Saison Co. Ltd.		186,100		4,949,151
	Daiwa Securities Group, Inc.		595,000		3,998,077
	Fanuc Ltd.		99,600		6,254,918
	Funai Electric Co. Ltd.		15,300		2,147,196
	Hitachi Construction Machinery Co. Ltd.		363,000		5,154,145
	Ito-Yokado Co. Ltd.		96,000		3,620,817
	JAF Co.		6,700		524,420
	Mitsubishi Estate Co., Ltd.		657,000		7,650,515
	Mitsubishi Tokyo Financial Group, Inc.		645		4,959,949
	NTT DoCoMo, Inc.		1,982		4,118,771
	Nitto Denko Corp.		54,400		2,689,248
	Nomura Holdings, Inc.		469,700		7,460,333
	Oki Electric Ind		745,000		3,314,597
	Orix Corp.		54,000		4,968,188
	SMC Corp.		29,200		3,424,287
	Seiyu		721,000		2,376,161
	Shin-Etsu Chemical Co.		48,500		1,886,987
	Softbank Corp.(2)		129,700		4,796,887
	Sompo Japan Insurance, Inc.		635,000		5,388,795
	Sumitomo Mitsui Financial Group, Inc.		1,199		6,673,612
	Suzuki Motor Corp. Ltd.		400,700		6,445,095
	TDK Corp.		41,100		2,867,048
	Vodafone Holdings K.K.		1,405		3,228,407
	Yamada Denki		87,600		2,782,734
	Yaskawa Electric Corp.		427,000		3,037,296
					108,962,702
	Korea, Republic Of -- 5.2%
	Daewoo Heavy Industries & Machinery Ltd.(1)		766,980		6,670,806
	Kookmin Bank		48,600		2,024,828
	Samsung Electronics Co.		26,730		12,361,349
					21,056,983
	Netherlands -- 4.1%
	ASM Lithography Holding NV(1)		258,820		4,781,860
	Koninklijke (Royal) Philips Electronics NV(2)		389,800	$	11,857,503
					16,639,363
	Peru -- 0.4%
	Cia de Minas Buenaventura SA, Class B, ADR		68,800		1,665,648
	Russia -- 2.8%
	LUKOIL, ADR		39,400		4,416,740
	YUKOS, ADR		138,800		6,978,864
					11,395,604
	Singapore -- 2.1%
	DBS Group Holdings Ltd.		218,900		1,890,895
	Venture Manufacturing (Singapore) Ltd.		519,200		6,559,600
					8,450,495
	South Africa -- 0.5%
	ABSA Group Ltd.		302,000		2,129,935
	Spain -- 3.0%
	Banco Santander Central Hispano, S.A.		411,960		4,776,871
	Telefonica SA(2)		454,360		7,388,363
					12,165,234
	Sweden -- 2.0%
	Atlas Copco AB, Class A(2)		113,810		4,082,533
	Telefonaktiebolaget LM Ericsson		1,386,000		4,048,322
					8,130,855
	Switzerland -- 2.4%
	Roche Holding AG		29,400		3,040,739
	UBS AG(2)		91,700		6,754,784
					9,795,523
	Thailand -- 2.3%
	Land & Houses Public Co. Ltd.		5,731,200		1,872,722
	Siam Cement Co. Ltd.(1)		1,095,216		7,384,869
					9,257,591
	United Kingdom -- 15.3%
	BHP Billiton PLC		251,879		2,313,184
	BP PLC		1,185,000		9,533,374
	GlaxoSmithKline PLC		273,000		5,689,308
	Kingfisher PLC		869,100		4,839,024
	Rio Tinto PLC		100,400		2,689,607
	Smith & Nephew PLC		650,100		6,202,979
	Standard Chartered PLC		373,500		6,443,618
	Tesco PLC		2,384,342		11,413,976
	Vodafone Group PLC		3,955,500		9,872,039
	WPP Group PLC		291,500		3,262,318
					62,259,427
	Description		Shares or Principal Amount	Value
	United States -- 0.7%
	Sohu.com, Inc.(1)		107,164	$	3,011,308
	Total Common Stocks (identified cost $326,890,210)				389,935,233
	Investment for Collateral Pool for Securities on Loan -- 14.3% (See Note 2 of the Financial Statements) (identified cost $58,444,899)				58,444,899
	Repurchase Agreement -- 3.2%
	Agreement with State Street Corp., 0.350%, dated 2/27/2004, to be repurchased at $13,057,381 on 3/1/2004, collateralized by a U.S. Treasury Bond maturing 2/15/2021 (at amortized cost)	$	13,057,000		13,057,000
	Total Investments -- 113.2% (identified cost $398,392,109)(3)				461,437,132
	Other Net Assets and Liabilities -- (13.2)%				(53,980,220)
	Total Net Assets -- 100.0%			$	407,456,912

Industry Diversification

Industry		Market Value		% of Total Net Assets
Automobiles	$	6,445,095		1.6	%
Beverages		2,090,130		0.5
Chemicals		4,576,235		1.1
Commercial Banks		55,738,973		13.7
Communications Equipment		6,195,695		1.5
Conductor Equipment & Products		17,143,209		4.2
Construction Materials		7,384,869		1.8
Diversified Financial Services		29,110,201		7.1
Diversified Telecommunication Services		15,787,773		3.9
Electrical Equipment		6,351,893		1.6
Electronic Equipment & Instrument		9,426,648		2.3
Energy Equipment & Service		8,660,175		2.1
ESS Telecommunication Services		21,489,114		5.3
Food & Staple Retailing		13,790,137		3.4
Food Products		2,007,547		0.5
Healthcare Equipment & Supply		6,202,979		1.5
Household Durables		11,857,503		2.9
Industrial Conglomerates		7,434,309		1.8
Insurance		7,361,498		1.8
Internet & Catalog Retail		6,324,883		1.6
Internet Software & Service		4,796,887		1.2
Leisure Equipment & Products		2,147,196		0.5
Machinery		25,586,689		6.3
Marine		8,322,303		2.0
Media		10,475,536		2.6
Metals & Mining		12,921,057		3.2
Multiline Retail		12,716,014		3.1
Office Electronics		4,245,068		1.0
Oil & Gas		24,753,058		6.1
Pharmaceuticals		12,760,047		3.1
Real Estate		17,293,750		4.3
Specialty Retail		8,538,762		2.1
Total Common Stocks		389,935,233		95.7
Investment for Collateral Pool for Securities on loan		58,444,899		14.3
Repurchase Agreement		13,057,000		3.2
Total Investments		461,437,132		113.2
Other Net Assets & Liabilities		(53,980,220	)	(13.2	)
Total Net Assets	$	407,456,912		100.0	%

(1) Non-income producing.

(2) Certain shares or principal amounts are temporarily on loan to unaffiliated broker-dealers.

(3) The cost of investments for federal tax purposes amounts to $398,392,109. The net unrealized appreciation of investments on a federal tax basis amounts to $63,045,023 which is comprised of $66,595,875 appreciation and $3,550,852 depreciation at February 29, 2004.

Note: The categories of investments are shown as a percentage of total net assets at February 29, 2004.

The following acronyms are used throughout this report:

ADR American Depositary Receipt
GDR Global Depositary Receipt

February 29, 2004 (unaudited)

Statement of Assets and Liabilities

Assets:
Investments in securities, at value	$ 448,380,132(1)
Investment in repurchase agreements	13,057,000
Cash	885
Cash Denominated in foreign currencies (identified cost, $399,139)	389,346
Income receivable	872,997
Receivable for investments sold	7,701,329
Receivable for capital stock sold	1,750,864
Total assets	472,152,553
Liabilities:
Payable for capital stock redeemed	222,433
Payable for investments purchased	5,215,876
Payable on collateral due to broker	58,444,899
Payable for investment adviser fee (Note 5)	314,467
Payable for shareholder services fees (Note 5)	51,926
Payable for administrative fees (Note 5)	31,392
Payable for custodian fees (Note 5)	16,602
Payable for distribution services fees (Note 5)	2,815
Net payable for foreign currency exchange contracts	402
Accrued expenses	394,829
Total liabilities	64,695,641
Total Net Assets	$ 407,456,912
Net Assets Consist of:
Paid-in-capital	$ 442,442,609
Net unrealized appreciation on investments and foreign currency translation	63,045,663
Accumulated net realized loss on investments and foreign currency transactions	(96,632,018)
Accumulated net investment income (loss)	(1,399,342)
Total Net Assets	$ 407,456,912
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Investor Class of Shares:
Net Asset Value, Offering Price and Redemption Proceeds Per Share	$ 11.76
Advisor Class of Shares:
Net Asset Value and Redemption Proceeds Per Share	$ 11.76
Offering Price Per Share	$ 12.48(2)
Institutional Class of Shares:
Net Asset Value, Offering Price and Redemption Proceeds Per Share	$ 11.86
Net Assets:
Investor Class of Shares	$ 264,271,137
Advisor Class of Shares	4,750,764
Institutional Class of Shares	138,435,011
Total Net Assets	$ 407,456,912
Shares Outstanding:
Investor Class of Shares	22,468,350
Advisor Class of Shares	404,026
Institutional Class of Shares	11,669,392
Total Shares Outstanding	34,541,768
Investments, at identified cost	$ 398,392,109

(1) Including $55,661,597 of securities loaned.

(2) Computation of offering price per share 100/94.25 of net asset value.

Six Months Ended February 29, 2004 (unaudited)

Statement of Operations

Investment Income:
Interest income	$ 50,549(1)
Dividend income	1,932,905(2)
Total income	1,983,454
Expenses:
Investment adviser fee (Note 5)	1,814,668
Shareholder services fees (Note 5)--
Investor Class of Shares	288,193
Advisor Class of Shares	5,320
Administrative fees (Note 5)	178,609
Portfolio accounting fees	58,280
Transfer and dividend disbursing agent fees	128,230
Custodian fees (Note 5)	95,014
Registration fees	16,788
Auditing fees	5,719
Legal fees	1,232
Printing and postage	21,897
Directors' fees	3,616
Insurance premiums	4,399
Distribution services fees (Note 5)--
Advisor Class of Shares	5,320
Miscellaneous	4,067
Total expenses	2,631,352
Deduct (Note 5)--
Waiver of investment adviser fee	(34,809)
Waiver of shareholder services fees--
Advisor Class of Shares	(5,320)
Total waivers	(40,129)
Net expenses	2,591,223
Net investment loss	(607,769)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency:
Net realized gain on investment transactions (identified cost basis)	37,598,489(3)
Net realized loss on foreign currency contracts (identified cost basis)	(99,180)
Net change in unrealized appreciation on investments and foreign currency translation	21,611,657
Net realized and unrealized gain on investments and foreign currency	59,110,966
Change in net assets resulting from operations	$ 58,503,197

(1) Including income on securities loaned of $31,920.

(2) Net of foreign taxes withheld of $177,906.

(3) Net of foreign taxes withheld of $408,448.

Statement of Changes in Net Assets

	Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003
Increase (Decrease) in Net Assets
Operations--
Net investment income (loss)	$ (607,769)	$ 2,116,355
Net realized gain (loss) on investment transactions	37,598,489	(29,827,293)
Net realized loss on foreign currency contracts	(99,180)	(446,168)
Net change in unrealized appreciation/depreciation of investments and foreign currency translation	21,611,657	52,382,865
Change in net assets resulting from operations	58,503,197	24,225,759
Distributions to Shareholders--
Distributions to shareholders from net investment income
Investor Class of Shares	(901,293)	--
Advisor Class of Shares	(15,537)	--
Institutional Class of Shares	(742,973)	--
Change in net assets resulfting from distributions to shareholders	(1,659,803)	--
Capital Stock Transactions--
Proceeds from sale of shares	67,036,974	280,914,464
Net asset value of shares issued to shareholders in payment of distributions declared	1,227,205	--
Cost of shares redeemed	(42,624,102)	(282,078,408)
Change in net assets resulting from capital stock transactions	25,640,077	(1,163,944)
Change in net assets	82,483,471	23,061,815
Net Assets:
Beginning of period	324,973,441	301,911,626
End of period (Including accumulated net investment income (loss) and undistributed net investment income of $(1,399,342) and $868,230, respectively)	$ 407,456,912	$ 324,973,441

Financial Highlights--Institutional Class of Shares (For a share outstanding throughout each period)

Period Ended August 31,	Net asset value, beginning of period	Net investment income (loss)	Net realized and unrealized gain (loss) on investments and foreign currency	Total from investment operations	Distributions to shareholders from net investment income	Distributions to shareholders from net realized gain on investments and foreign currency transactions	Total distributions	Net asset value, end of period		Ratios to Average Net Assets				Net assets, end of period (000 omitted)	Portfolio turnover rate
									Total return (1)		Expenses	Net investment income (loss)	Expense waiver/ reimbursement (2)
2000(3)	$ 13.83	(0.02)(4)	4.08	4.06	(0.18)	(1.36)	(1.54)	$ 16.35	28.34%		1.26 %	(0.12)%	0.02%	$134,920	225%
2001	$ 16.35	0.07(4)	(4.04)	(3.97)	--	(1.61)	(1.61)	$ 10.77	(26.19)%		1.21 %	0.55%	0.02%	$109,367	156%
2002(5)	$ 10.77	0.06(4)	(1.46)	(1.40)	--	--	--	$   9.37	(13.00)%		1.24 %	0.59%	0.02%	$102,233	83%
2003(5)	$ 9.37	0.08(4)	0.66	0.74	--	--	--	$ 10.11	7.90%		1.29 %	0.90%	0.02%	$116,761	171%
2004(5)(6)	$ 10.11	(0.01)	1.82	1.81	(0.06)	--	(0.06)	$ 11.86	17.98%		1.27%(7)	(0.17)%(7)	0.02%(7)	$138,435	72%

(1) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(2) This voluntary expense decrease is reflected in both the expense and net investment income (loss) ratios.

(3) Reflects operations for the period from September 1, 1999 (start of performance) to August 31, 2000.

(4) Per share information is based on average shares outstanding.

(5) Effective September 1, 2001, the Fund adopted the provisions of the revised American Institute of Certified Public Accountants Audit and Accounting Guide for Investment Companies which requires the disclosure of the per share effect of redemption fees. Redemption fees consisted of the following per share amounts:

2002	2003	2004
$0.01	$0.01	$0.00

Periods prior to September 1, 2001 have not been restated to reflect this change.

(6) For the six months ended February 29, 2004 (unaudited).

(7) Computed on an annualized basis.

February 29, 2004 (unaudited)

Notes to Financial Statements

1. Organization

Marshall Funds, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Corporation consists of twelve diversified portfolios. The financial statements included herein are only those of Marshall International Stock Fund (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective the Fund is to provide capital appreciation.

The Fund offers three classes of shares: Investor Class of Shares, Advisor Class of Shares and Institutional Class of Shares. The Financial Highlights of Investor Class of Shares and Advisor Class of Shares of the Fund are presented in a separate semi-annual report.

2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP") in the United States of America.

Investment Valuations--Foreign equity securities are valued at the last sale price reported in the market in which they are primarily traded. If no sale on the recognized exchange is reported or the securiy is traded over-the-counter, the foreign securities are valued at the mean between the last closing bid and asked prices. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities purchased with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair market value. Investments in other open-end regulated investment companies are valued at net asset value. Securities for which no quotations are readily available are valued at fair value as determined in good faith using methods approved by the Board of Directors (the "Directors").

Repurchase Agreements--It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement, including accrued interest.

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser or sub-adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Directors. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities.

Investment Income, Expenses and Distributions--Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair market value. The Fund offers multiple classes of shares, which differ in respective distribution and service fees. All shareholders bear the common expenses of the Fund based on average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Federal Taxes --It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

Withholding taxes on foreign dividends have been provided for in accordance with the applicable country's tax rules and rates.

When-Issued and Delayed Delivery Transactions--The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Foreign Exchange Contracts--The Fund may enter into foreign currency exchange contracts as a way of managing foreign exchange rate risk. The Fund may enter into these contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge or cross hedge against either specific transactions or portfolio positions. The objective of the Fund's foreign currency hedging transactions is to reduce the risk that the U.S. dollar value of the Fund's foreign currency denominated securities will decline in value due to changes in foreign currency exchange rates. All foreign currency exchange contracts are "marked-to-market" daily at the applicable translation rates resulting in unrealized gains or losses. Realized gains or losses are recorded at the time the foreign currency exchange contract is offset by entering into a closing transaction or by the delivery or receipt of the currency. Risk may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. At February 29, 2004, the Fund had outstanding foreign currency exchange contracts as set forth below:

Settlement Date	Foreign Currency Units to Receive	In Exchange For	Contract at Value	Unrealized Depreciation
Contracts Bought:
3/1/2004	1,163,545 South African Rand	$ 176,161	$ 175,759	$ (402 )

Foreign Currency Translation--The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies ("FC") are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Securities Lending--The Fund participates in a securities lending program providing for the lending of corporate bonds, equity and government securities to qualified brokers. The Fund receives cash as collateral in return for the securities and record a corresponding payable for collateral due to the respective broker. The amount of cash collateral received is maintained at a minimum level of 100% of the prior day's market value on securities loaned. Collateral is reinvested by the Fund in short-term securities including overnight repurchase agreements, commercial paper, master notes, floating rate corporate notes (with at least quarterly reset rates) and money market funds.

As of February 29, 2004, the value of securities loaned, the payable on collateral due to broker and the value of reinvested cash collateral securities were as follows:

Market Value of Securities Loaned	Payable on Collateral Due to Broker	Reinvested Collateral Securities
$55,661,597	$58,444,899	$58,444,899

Individual reinvested cash collateral jointly pooled with collateral received from other loans of the securities lending agent at February 29, 2004 are as follows¹:

Investments	Total
Provident Money Market Fund	$ 2,946,265
JP Morgan Master Note	2,304,418
Metlife Funding Agreement	3,545,259
Wisconsin Public Service Master Note	1,772,629
Wachovia Securities LLC	1,772,629
Monumental Life Insurance Master Note	2,658,944
Merrill Lynch & Co.	3,545,259
Wells Fargo & Co.	1,772,629
Goldman Sachs Group	3,545,258
Allstate Life Global FB II	3,545,258
Jackson National Life Global	3,544,408
American Express Credit	3,545,259
Canadian IMP BK Comm	2,658,944
Credit Suisse FB UAS Inc.	2,663,900
Westpac Banking Corp.	1,772,629
Dorada Finance Inc.	3,552,732
CC USA Inc.	3,549,017
Prudential Financial Funding	3,545,259
HBOS Treasury Services PLC	3,545,259
General Electric Capital Corp.	2,658,944
Total	$ 58,444,899

¹ The collateral pool is managed by the Fund Manager of the Short-Term Income Fund and Money Market Fund.

Redemption Fees--The Fund imposed a 2.00% redemption fee to shareholders of the Investor, Advisor and Institutional Class of Shares who redeem shares held for 90 days or less. Redemption fees for the Institutional Class of Shares became effective on October 31, 2003. All redemption fees are recorded by the Fund as paid in capital. For the six months ended February 29, 2004, the redemption fee collected was $51,638.

Other--Investment transactions are accounted for on a trade date basis.

3. Capital Stock

The Articles of Incorporation permit the Directors to issue an indefinite number of full and fractional shares of common stock, par value $0.0001 per share. At February 29, 2004, the capital paid-in for the Fund was $442,442,609.

Transactions in capital stock were as follows:

	Six Months Ended February 29, 2004		Year Ended August 31, 2003
Investor Class	Shares	Amount		Shares	Amount
Shares sold	3,886,312	$ 44,001,085		25,538,107	$ 216,541,378
Shares issued to shareholders in payment of distributions declared	45,234	507,979		--	--
Shares redeemed	(1,871,782)	(20,472,745)		(26,127,152)	(223,154,491)
Net change resulting from Investor Class of Shares transactions	2,059,764	$ 24,036,319		(589,045)	$ (6,613,113)

	Six Months Ended February 29, 2004		Year Ended August 31, 2003
Advisor Class	Shares	Amount		Shares	Amount
Shares sold	73,378	$ 801,415		2,956,437	$ 25,430,025
Shares issued to shareholders in payment of distributions declared	1,344	15,095		--	--
Shares redeemed	(43,711)	(466,218)		(3,032,995)	(26,284,598)
Net change resulting from Advisor Class of Shares transactions	31,011	$ 350,292		(76,558)	$ (854,573)

	Six Months Ended February 29, 2004		Year Ended August 31, 2003
Institutional Class	Shares	Amount		Shares	Amount
Shares sold	1,991,146	$ 22,234,474		4,490,137	$ 38,943,061
Shares issued to shareholders in payment of distributions declared	62,147	704,131		--	--
Shares redeemed	(1,933,291)	(21,685,139)		(3,849,794)	(32,639,319)
Net change resulting from Institutional Class of Shares transactions	120,002	$ 1,253,466		640,343	$ 6,303,742
Net change resulting from Fund Share transactions	2,210,777	$ 25,640,077		(25,260)	$ (1,163,944)

4. Federal Tax Information

At February 29, 2004, the cost of investments for federal tax purposes was $398,392,109. The net unrealized appreciation of investments for federal tax purposes, excluding any unrealized appreciation/depreciation from changes in the value of assets and liabilities resulting from changes in foreign exchange rates was $63,045,023. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $66,595,875 and net unrealized depreciation from investments for those securities having an excess of cost over value of $3,550,852.

At August 31, 2003, the Fund had a capital loss carryforward of $114,515,115 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the Code such capital loss carryforward will expire as follows:

Expiration Year	Expiration Amount
2009	$ 2,042,934
2010	63,689,740
2011	48,782,441

5. Investment Adviser Fee and Other Transactions with Affiliates

Investment Adviser Fee--M&I Investment Management Corp., the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 1.00% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

The Fund's sub-adviser is BPI Global Asset Management LLP (the "Sub-Adviser"). The Adviser compensates the Sub-Adviser based on the level of average aggregate daily net assets of the Fund.

Administrative Fee--M&I Trust, under the Administrative Services Agreement, provides the Fund with Administrative personnel and services. The fee paid to M&I Trust is based on the Fund's average daily net assets as follows:

Maximum Fee	Fund's Average Daily Net Assets
0.100%	on the first $250 million
0.095 %	on the next $250 million
0.080 %	on the next $250 million
0.060 %	on the next $250 million
0.040 %	on the next $500 million
0.020 %	on assets in excess of $1.5 billion

M&I Trust may voluntarily choose to waive any portion of its fee. M&I Trust can modify or terminate this voluntary waiver at any time at its sole discretion.

Federated Services Company ("FServ") is the sub-administrator and will be paid by M&I Trust, not by the Fund.

Distribution Services Fee--The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Edgewood Services, Inc. ("Edgewood"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of shares of the Fund's Advisor Class of Shares. The Plan provides that the Funds may incur distribution expenses up to 0.25% of the average daily net assets of each Fund's Advisor Class of Shares (Except Money Market Fund's Advisor Class of Shares which may accrue up to 0.30%) annually, to compensate Edgewood. Edgewood may voluntarily choose to waive any portion of its fee. Edgewood can modify or terminate this voluntary waiver at any time at its sole discretion.

Sales Charges--For the six months ended February 29, 2004, Edgewood, the principal distributor, retained $3,233 in sales charges from the sale of the Fund's Advisor Class of Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee--Under the terms of a Shareholder Services Agreement with Marshall Investor Services ("MIS"), a division of M&I Trust, the Fund will pay MIS up to 0.25% of average daily net assets of the Fund's Investor and Advisor Class of Shares for the period. The fee paid to MIS is used to finance certain services for shareholders and to maintain shareholder accounts. MIS may voluntarily choose to waive any portion of its fee. MIS can modify or terminate this voluntary waiver at any time at its sole discretion.

Custodian Fees--M&I Trust is the Fund's custodian. The fee is based on the level of the Fund's average daily net assets for the period. The custodian also charges a fee in connection with securities lending activities of the Fund.

General--Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of one or more of the above companies.

6. Investment Transactions

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations (in-kind contributions), for the six months ended February 29, 2004 were as follows:

Purchases	$ 264,009,354
Sales	$ 253,559,181

7. Line of Credit

Marshall Funds, Inc., on behalf of its respective Funds (expect for the Money Market Fund) entered into a $25,000,000 unsecured, committed revolving line of credit ("LOC") agreement with State Street Bank & Trust Company. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.50% per annum over the Federal Funds Rate. The LOC includes a commitment fee of 0.10% per annum on the daily unused portion. The Fund did not utilize the LOC during the six months ended February 29, 2004.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to the securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-236-FUND (3863). This information is also available from the EDGAR database on the SEC's Internet site at http://www.sec.gov.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Funds' prospectus, which contains facts concerning each Fund's objective and policies, management fees, expenses, and other information.

[Logo of Marshall Funds]

Marshall Investor Services
P.O. Box 1348
Milwaukee,Wisconsin 53201-1348

800-236-FUND(3863)

TDD: Speech and Hearing Impaired Services
800-209-3520
www.marshallfunds.com

Edgewood Services, Inc., Distributor 25330 (4/04)
M&I Investment Management Corp., Investment Adviser

©2004 Marshall Funds, Inc.

321-316

[Logo of Marshall Funds]

The Marshall Funds Family

Semi-Annual Report

The Institutional Class of Shares

(Class I)

* Marshall Money Market Fund

FEBRUARY 29, 2004

February 29, 2004 (unaudited)

Portfolio of Investments

Money Market Fund

	Description		Principal Amount		Value
Certificates of Deposit -- 4.0%
	Banks -- 3.2%
	Toronto Dominion Bank, 1.330%, 8/23/2004	$	30,000,000	$	30,001,439
	Washington Mutual Bank FA, 1.150%, 3/10/2004 - 3/11/2004		75,000,000		75,000,000
					105,001,439
	Foreign Banks -- 0.8%
	U.S. Branch Foreign Banks Stamford, 1.245%, 3/17/2004		25,000,000		25,000,000
Total Certificates of Deposit					130,001,439
Collateralized Loan Agreements -- 9.2%
	Banking -- 6.1%
	Deutsche Bank Alex Brown, Inc., 1.123%, 2/27/2004		100,000,000		100,000,000
	Wachovia, Inc., 1.130%, 2/27/2004		100,000,000		100,000,000
					200,000,000
	Brokerage -- 3.1%
	Morgan Stanley & Co., Inc., 1.123%, 2/27/2004		100,000,000		100,000,000
Total Collateralized Loan Agreements					300,000,000
Commercial Paper -- 26.3%(1)
	Asset-Backed -- 11.0%
	Atlantis One Funding Corp., 1.110%, 3/1/2004(2)(3)		20,000,000		20,000,000
	Concord Minutemen, 1.050%, 5/17/2004(2)(3)		75,000,000		74,831,563
	Crown Point Capital Co., 1.100%, 7/7/2004(2)(3)		40,219,000		40,061,699
	Scaldis Capital Ltd., 1.100%, 3/26/2004(2)(3)		75,000,000		74,942,708
	Tannehill Capital Co., 1.110% - 1.120%, 3/8/2004 - 8/23/2004(2)(3)		75,000,000		74,854,215
	World Omni Vehicle Leasing, Inc., 1.060%, 3/9/2004(2)(3)		75,000,000		74,982,333
					359,672,518
	Foreign Banks -- 6.8%
	Britannia Building Society, 1.040%, 4/15/2004		50,000,000		49,935,000
	Britannia Building Society, 1.050%, 4/15/2004		25,000,000		24,967,188
	DePfa Bank PLC, 1.030% - 1.040%, 5/12/2004 - 5/28/2004(2)(3)		75,000,000		74,819,942
	Description		Principal Amount		Value
Commercial Paper (continued)(1)
	Foreign Banks (continued)
	Spintab-Swedmortgage AB, 1.100% - 1.120%, 3/3/2004 - 4/8/2004	$	74,300,000	$	74,268,545
					223,990,675
	Insurance -- 3.9%
	Jefferson-Pilot Corp., 1.105%, 3/25/2004 - 3/26/2004(2)(3)		52,969,000		52,929,158
	Torchmark Corp., 1.040% - 1.050%, 3/4/2004 - 3/18/2004		74,300,000		74,273,915
					127,203,073
	Mortgage Banking -- 2.3%
	Countrywide Home Loans, Inc., (Guaranteed by Countrywide Financial Corp.), 1.050%, 3/29/2004		75,000,000		74,938,750
	Short-Term Business Credit -- 2.3%
	CIT Group, Inc., 1.100% - 1.140%, 3/17/2004 - 3/30/2004		74,976,000		74,914,019
Total Commercial Paper					860,719,035
Corporate Bonds -- 3.8%
	Automotive -- 1.2%
	BMW US Capital LLC, 4.071%, 6/7/2004(2)(3)		40,000,000		40,311,015
	Banks -- 0.4%
	Wells Fargo & Co., 6.625%, 7/15/2004		11,915,000		12,160,893
	Beverages & Foods -- 0.9%
	McDonald's Corp., 4.604%, 3/7/2004(2)(3)		30,000,000		30,015,890
	Broker/Dealers -- 0.6%
	Lehman Brothers Holdings, Inc., 7.375%, 5/15/2004		18,750,000		18,980,827
	Insurance -- 0.7%
	AIG SunAmerica Global Financial, 5.200%, 5/10/2004(2)(3)		23,815,000		23,993,977
Total Corporate Bonds					125,462,602
Corporate Notes -- 2.6%
	Broker/Dealers -- 0.3%
	Lehman Brothers Holdings, Inc., 6.625%, 4/1/2004		10,170,000		10,215,862
	Description		Principal Amount		Value
Corporate Notes (continued)
	Telecommunications -- 2.3%
	SBC Communications, Inc., 4.180%, 6/5/2004(2)(3)	$	75,000,000	$	75,578,557
Total Corporate Notes					85,794,419
Government Agencies -- 4.0%
	Federal Home Loan Bank System -- 0.8%
	Federal Home Loan Bank System, 1.400%, 3/29/2005		25,000,000		25,000,000
	Federal Home Loan Mortgage Corporation -- 1.8%
	Federal Home Loan Mortgage Corp., 1.190%, 2/14/2005		25,000,000		25,000,000
	Federal Home Loan Mortgage Corp., 1.400%, 8/11/2004		35,000,000		35,000,000
					60,000,000
	Federal National Mortgage Association -- 1.4%
	Federal National Mortgage Association, 1.500%, 12/21/2004		25,000,000		25,000,000
	Federal National Mortgage Association, 6.500%, 8/15/2004		20,000,000		20,467,801
					45,467,801
Total Government Agencies					130,467,801
Variable-Rate Notes -- 44.0%(4)
	Banks -- 4.9%
	American Express Centurion Bank, DE, 1.074%, 3/17/2004		75,000,000		75,000,000
	First USA Bank, 1.250%, 5/14/2004		25,000,000		25,008,648
	First USA Bank, 1.270%, 5/28/2004		12,100,000		12,104,111
	SMM Trust, (Series 2003-H), 1.170% (JP Morgan Chase), 3/23/2004(2)(3)		35,448,889		35,448,889
	SMM Trust, (Series 2003-M), 1.170% (JP Morgan Chase), 3/15/2004(2)(3)		11,000,000		11,000,000
					158,561,648
	Broker/Dealers -- 13.1%
	Bank of America Securities LLC, 1.140%, 3/1/2004(2)(3)		75,000,000		75,000,000
	Equity Mortgage Corp. (Fully Guaranteed by the Bear Stearns Companies, Inc.) 1.130%, 3/4/2004(2)(3)		75,000,000		75,000,000
	Credit Suisse First Boston USA, 1.370%, 3/23/2004		25,000,000		25,016,564
	Description		Principal Amount		Value
Variable-Rate Notes (continued)
	Broker/Dealers (continued)
	Credit Suisse First Boston USA, 1.350%, 3/25/2004	$	50,000,000	$	50,031,948
	Goldman Sachs Group, Inc., 1.270%, 3/15/2004(2)(3)		75,000,000		75,098,515
	J.P. Morgan Securities, Inc., 1.110%, 3/1/2004(2)(3)		20,000,000		20,000,000
	Merrill Lynch & Co., Inc., 1.225%, 3/11/2004		20,000,000		20,000,000
	Merrill Lynch & Co., Inc., 1.420%, 5/21/2004		39,000,000		39,029,166
	Wachovia Securities LLC, Master Note, 1.180%, 3/1/2004(2)(3)		50,000,000		50,000,000
					429,176,193
	Construction Equipment -- 2.3%
	Caterpillar Financial Services Corp., 1.250%, 4/9/2004		75,000,000		75,000,000
	Foreign Banks -- 5.3%
	BNP Paribas NY, 1.030%, 3/5/2004		75,000,000		74,995,257
	HBOS Treasury Services PLC, 1.190%, 5/20/2004(2)(3)		30,000,000		30,000,000
	Northern Rock PLC, 1.180%, 3/9/2004(2)(3)		50,000,000		50,000,000
	Royal Bank of Canada, London, 1.120%, 5/26/2004		20,000,000		20,001,438
					174,996,695
	Insurance -- 10.0%
	GE Life and Annuity Assurance Co., 1.190%, 4/20/2004(2)		75,000,000		75,000,000
	Jackson National Life Insurance Co., 1.110%, 5/1/2004(2)(3)		40,000,000		40,000,000
	Metropolitan Life Insurance Co., 1.163%, 3/1/2004(2)(3)		50,000,000		50,000,000
	Monumental Life Insurance Co., 1.220%, 4/1/2004(2)		10,000,000		10,000,000
	Monumental Life Insurance Co., 1.310%, 3/1/2004(2)		40,000,000		40,000,000
	Monumental Life Insurance Co., 1.225%, 4/1/2004(2)		25,000,000		25,000,000
	Prudential Funding Corp., 1.434%, 3/15/2004(2)(3)		37,000,000		37,026,451
	Travelers Insurance Co., 1.190%, 5/1/2004(2)		50,000,000		50,000,000
					327,026,451
	Description		Principal Amount or Shares		Value
Variable-Rate Notes (continued)
	Personal Credit -- 3.8%
	Associates Corp. of North America, 1.270%, 3/26/2004	$	50,000,000	$	50,000,000
	USA Education, Inc., 1.448%, 3/16/2004		73,000,000		73,067,795
					123,067,795
	Telecommunications -- 4.6%
	BellSouth Telecommunications, Inc., 1.240%, 3/4/2004		75,000,000		75,000,000
	Verizon Global Funding, 1.260%, 3/15/2004(2)(3)		75,000,000		75,000,000
					150,000,000
Total Variable-Rate Notes					1,437,828,782
Mutual Fund -- 3.1%
	Money Market Fund -- 3.1%
	American Select Cash Reserve Fund		100,000,000		100,000,000
	Description		Principal Amount		Value
Repurchase Agreements -- 3.5%
	Agreement with Lehman Brothers, Inc., 0.980%, dated 2/27/2004, to be repurchased at $95,007,758 on 3/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 1/15/2030	$	95,000,000	$	95,000,000
	Agreement with State Street Bank and Trust Co., 0.960%, dated 2/27/2004, to be repurchased at $19,489,425 on 3/1/2004, collateralized by a U.S. Government Agency Obligation maturing on 7/3/2018		19,487,866		19,487,866
Total Repurchase Agreements					114,487,866
Total Investments (at amortized cost) -- 1 00.5%					3,284,761,944
Other Net Assets and Liabilities -- (0.5)%					(16,952,974)
Total Net Assets -- 100%				$	3,267,808,970

(1) Each issue shows the rate of discount at the time of purchase.

(2) Denotes a restricted security which is subject to restrictions on resale under federal securities laws. At February 29, 2004, these securities amounted to $1,480,894,912 which represents 45.3% of net assets.

(3) Denotes a restricted security which has been deemed liquid by criteria approved by the Fund's Board of Directors.

(4) Current rate and next demand date shown.

February 29, 2004 (unaudited)

Statement of Assets and Liabilities

Assets:
Investments in securities, at amortized cost and value	$ 3,170,274,078
Investments in repurchase agreements	114,487,866
Income receivable	9,952,330
Receivable for capital stock sold	11,257,447
Prepaid expenses	132,304
Total assets	3,306,104,025
Liabilities:
Payable for capital stock redeemed	10,813,582
Payable to bank	14
Payable for investments purchased	25,000,000
Payable for income distribution	1,510,425
Payable for investment adviser fee (Note 5)	315,694
Payable for shareholder services fees (Note 5)	446,570
Payable for administrative fees (Note 5)	111,051
Payable for custodian fees (Note 5)	28,289
Payable for distribution services fees (Note 5)	69,430
Total liabilities	38,295,055
Total Net Assets	$ 3,267,808,970
Net Assets Consist of:
Paid-in-capital	3,268,296,303
Accumulated net realized loss on investments	(482,369)
Distributions in excess of net investment income	(4,964)
Total Net Assets	$ 3,267,808,970
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Investor Class of Shares:
Net Asset Value, Offering Price and Redemption proceeds Per Share	$ 1.00
Advisor Class of Shares:
Net Asset Value, Offering Price and Redemption proceeds Per Share	$ 1.00
Institutional Class of Shares:
Net Asset Value, Offering Price and Redemption proceeds Per Share	$ 1.00
Net Assets:
Investor Class of Shares	$ 2,145,251,323
Advisor Class of Shares	98,479,672
Institutional Class of Shares	1,024,077,975
Total Net Assets	$ 3,267,808,970
Shares Outstanding:
Investor Class of Shares	2,145,544,797
Advisor Class of Shares	98,514,580
Institutional Class of Shares	1,024,236,926
Total Shares Outstanding	3,268,296,303
Investments, at identified cost	$ 3,284,761,944

Six Months Ended February 29. 2004 (unaudited)

Statement of Operations

Investment Income:
Interest income	$ 19,414,659
Expenses:
Investment adviser fee (Note 5)	2,513,432
Shareholder services fees (Note 5)--
Investor Class of Shares	2,567,679
Advisor Class of Shares	116,773
Administrative fees (Note 5)	701,859
Portfolio accounting fees	129,749
Transfer and dividend disbursing agent fees	206,197
Custodian fees (Note 5)	179,994
Registration fees	31,647
Auditing fees	5,719
Legal fees	1,192
Printing and postage	36,522
Directors' fees	3,616
Insurance premiums	28,883
Distribution services fees (Note 5)--
Advisor Class of Shares	140,127
Miscellaneous	15,119
Total expenses	6,678,508
Deduct (Note 5)--
Waiver of investment adviser fee	(502,686)
Net expenses	6,175,822
Net investment income	13,238,837
Net realized gain on investment transactions	58,781
Change in net assets resulting from operations	$ 13,297,618

Statement of Changes in Net Assets

	Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003
Increase (Decrease) in Net Assets
Operations--
Net investment income	$ 13,238,837	$ 35,459,931
Net realized gain (loss) on investment transactions	58,781	(388,321 )
Change in net assets resulting from operations	13,297,618	35,071,610
Distributions to Shareholders--
Distributions to shareholders from net investment income
Investor Class of Shares	(7,284,971 )	(20,782,392 )
Advisor Class of Shares	(190,922 )	(789,875 )
Institutional Class of Shares	(5,758,672 )	(13,896,900 )
Change in net assets resulting from distributions to shareholders	(13,234,565 )	(35,469,167 )
Capital Stock Transactions--
Proceeds from sale of shares	7,196,637,034	9,871,475,992
Net asset value of shares issued to shareholders in payment of dividends declared	3,557,503	9,474,123
Cost of shares redeemed	(7,217,177,010 )	(9,477,630,430 )
Change in net assets resulting from capital stock transactions	(16,982,473 )	403,319,685
Change in net assets	(16,919,420 )	402,922,128
Net Assets:
Beginning of period	3,284,728,390	2,881,806,262
End of period (including distributions in excess of net investment income of $(4,964) and $(9,236), respectively)	$ 3,267,808,970	$ 3,284,728,390

Financial Highlights--Institutional Class of Shares (For a share outstanding throughout each period)

Year Ended August 31,	Net asset value, beginning of period	Net investment income	Dividends to shareholders from net investment income	Net asset value, end of period		Ratios to Average Net Assets				Net assets, end of period (000 omitted)
					Total return (1)		Expenses	Net investment income	Expense waiver (2)
2000 (3)	$ 1.00	0.03	(0.03)	$ 1.00	2.63%		0.24%(4)	6.51%(4)	0.05%(4)	$    141,909
2001	$ 1.00	0.05	(0.05)	$ 1.00	5.58%		0.21%	4.98%	0.05%	$    914,693
2002	$ 1.00	0.02	(0.02)	$ 1.00	2.25%		0.20%	2.24%	0.04%	$    910,196
2003	$ 1.00	0.01	(0.01)	$ 1.00	1.30%		0.20%	1.26%	0.03%	$ 1,302,242
2004 (5)	$ 1.00	0.00(6)	(0.00)(6)	$ 1.00	0.48%		0.20%(4)	0.96%(4)	0.03%(4)	$ 1,024,078

(1) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(2) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above.

(3) Reflects operations for the period from April 3, 2000 (start of performance) to August 31, 2000.

(4) Computed on an annualized basis.

(5) For the six months ended February 29, 2004 (unaudited).

(6) Represents less than $0.01.

February 29, 2004 (unaudited)

Notes to Financial Statements

1. Organization

Marshall Funds, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Corporation consists of twelve diversified portfolios. The financial statements included herein are only those of Marshall Money Market Fund (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment the objective of the Fund is to provide current income consistent with stability of principal.

The Fund offers three classes of shares: Investor Class of Shares, Advisor Class of Shares and Institutional Class of Shares. The financial highlights of Investor Class of Shares and Advisor Class of Shares of the Fund are presented in a separate semi-annual report.

2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with general accepted accounting principles ("GAAP") in the United States of America.

Investment Valuations--Short-term securities purchased with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair market value. The Fund's use of the amortized cost method to value portfolio securities is in accordance with Rule 2a-7 under the Act. Investments in other open-end regulated investment companies are valued at net asset value.

Repurchase Agreements--It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement, including accrued interest.

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Directors (the "Directors"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities.

Investment Income, Expenses and Distributions--Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair market value. The Fund offers multiple classes of shares, which differ in their respective distribution and service fees. All shareholders bear the common expenses of the Fund based on average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization--All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes.

Federal Taxes--It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

When-Issued and Delayed Delivery Transactions--The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Restricted Securities--Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. Many restricted securities may be resold in the secondary market in transactions exempt from registration. In some cases, the restricted securities may be resold without registration upon exercise of a demand feature. Such restricted securities may be determined to be liquid under criteria established by the Directors. The Fund will not incur any registration costs upon such resales. Restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.

Additional information on each illiquid restricted security held at February 29, 2004 is as follows:

Security	Acquisition Date	Acquisition Cost
GE Life & Annuity Assurance Co.	4/22/2000	$ 75,000,000
Monumental Life Insurance Co.	8/2/1993-11/30/1993	40,000,000
Monumental Life Insurance Co.	10/15/1996	10,000,000
Monumental Life Insurance Co.	1/4/2000	25,000,000
Travelers Insurance Co.	1/19/2001	50,000,000

Other--Investment transactions are accounted for on a trade date basis.

3. Capital Stock

The Articles of Incorporation permit the Directors to issue an indefinite number of full and fractional shares of common stock, par value $0.0001 per share. At February 29, 2004, the capital paid-in for the Fund was $3,268,296,303.

Transactions in capital stock were as follows:

	Six Months Ended February 29, 2004		Year Ended August 31, 2003
	Shares	Amount		Shares	Amount
INVESTOR CLASS
Shares sold	3,308,384,307	$ 3,308,384,307		4,925,939,267	$ 4,925,939,267
Shares issued to shareholders in payment of distributions declared	1,678,880	1,678,880		5,527,537	5,527,537
Shares redeemed	(3,054,290,014)	(3,054,290,014)		(4,899,745,083)	(4,899,745,083)
Net change resulting from Investor Class of Shares transactions	255,773,173	$ 255,773,173		31,721,721	$ 31,721,721

	Six Months Ended February 29, 2004		Year Ended August 31, 2003
	Shares	Amount		Shares	Amount
ADVISOR CLASS
Shares sold	114,255,179	$ 114,255,179		203,154,343	$ 203,154,343
Shares issued to shareholders in payment of distributions declared	187,683	187,683		782,990	782,990
Shares redeemed	(109,024,899)	(109,024,899)		(224,514,776)	(224,514,776)
Net change resulting from Advisor Class of Shares transactions	5,417,963	$ 5,417,963		(20,577,443)	$ (20,577,443)

	Six Months Ended February 29, 2004		Year Ended August 31, 2003
	Shares	Amount		Shares	Amount
INSTITUTIONAL CLASS
Shares sold	3,773,997,548	$ 3,773,997,548		4,742,382,382	$ 4,742,382,382
Shares issued to shareholders in payment of distributions declared	1,690,940	1,690,940		3,163,596	3,163,596
Shares redeemed	(4,053,862,097)	(4,053,862,097)		(4,353,370,571)	(4,353,370,571)
Net change resulting from Institutional Class of Shares transactions	(278,173,609)	$ (278,173,609)		392,175,407	$ 392,175,407
Net change resulting from Fund Share transactions	(16,982,473)	$ (16,982,473)		403,319,685	$ 403,319,685

4. Federal Tax Information

At August 31, 2003, the Fund had a capital loss carryforward of $541,150 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:

Expiration Year	Expiration Amount
2010	$ 145,822
2011	395,328

5. Investment Adviser Fee and Other Transactions with Affiliates

Investment Adviser Fee--M&I Investment Management Corp., the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.15% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Administrative Fee--Marshall & Ilsley Trust Company N.A. (M&I Trust), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to M&I Trust is based on the Fund's average daily net assets as follows:

Maximum Fee	Fund's Average Daily Net Assets
0.100%	on the first $250 million
0.095 %	on the next $250 million
0.080 %	on the next $250 million
0.060 %	on the next $250 million
0.040 %	on the next $500 million
0.020 %	on assets in excess of $1.5 billion

M&I Trust may voluntarily choose to waive any portion of its fee. M&I Trust can modify or terminate this voluntary waiver at any time at its sole discretion.

Federated Services Company ("FServ") is the sub-administrator and will be paid by M&I Trust, not by the Fund.

Distribution Services Fee --The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Edgewood Services, Inc. ("Edgewood"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of shares of the Fund's Advisor Class of Shares. The Plan provides that the Funds may incur distribution expenses up to 0.25% of the average daily net assets of each Fund's Advisor Class of Shares (except Money Market Fund's Advisor Class of Shares which may accrue up to 0.30%) annually, to compensate Edgewood. Edgewood may voluntarily choose to waive any portion of its fee. Edgewood can modify or terminate this voluntary waiver at any time at its sole discretion.

Shareholder Services Fee--Under the terms of a Shareholder Services Agreement with Marshall Investor Services ("MIS"), a division of M&I Trust, the Fund will pay MIS up to 0.25% of average daily net assets of the Fund's Investor and Advisor Class of Shares for the period. The fee paid to MIS is used to finance certain services for shareholders and maintain shareholder accounts. MIS may voluntarily choose to waive any portion of its fee. MIS can modify or terminate this voluntary waiver at any time at its sole discretion.

Custodian Fees--M&I Trust is the Fund's custodian. M&I Trust receives fees based on the level of the Fund's average daily net assets for the period.

General--Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of one or more of the above companies.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to the securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-236-FUND (3863). This information is also available from the EDGAR database on the SEC's Internet site at http://www.sec.gov.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Funds' prospectus, which contains facts concerning each Fund's objective and policies, management fees, expenses, and other information.

[Logo of Marshall Funds]

Marshall Investor Services
P.O. Box 1348
Milwaukee,Wisconsin 53201-1348

800-236-FUND(3863)

TDD: Speech and Hearing Impaired Services
800-209-3520
www.marshallfunds.com

Edgewood Services, Inc., Distributor I-25800(4/04)
M&I Investment Management Corp., Investment Adviser

©2004 Marshall Funds, Inc.

321-315

The Marshall Funds Family

Semi-Annual Report

The Investor and Advisor Class of Shares

( Class Y and Class A)

• Marshall Equity Income Fund
  
• Marshall Large-Cap Growth & Income Fund
  
• Marshall Mid-Cap Value Fund
  
• Marshall Mid-Cap Growth Fund
  
• Marshall Small-Cap Growth Fund
  
• Marshall International Stock Fund
  
• Marshall Government Income Fund
  
• Marshall Intermediate Bond Fund
  
• Marshall Intermediate Tax-Free Fund
  
• Marshall Short-Term Income Fund
  
• Marshall Money Market Fund
  

FEBRUARY 29, 2004

February 29, 2004 (unaudited)

Portfolio of Investments

Eaquity Income Fund

	Description		Shares		Value
Common Stocks -- 98.0%
Consumer Discretionary -- 4.6%
	Auto Parts & Equipment -- 0.1%
	Delphi Auto Systems Corp.		50,882	$	518,996
	Automobile Manufacturers -- 2.1%
	Ford Motor Co.(1)		194,585		2,675,544
	General Motors Corp.(1)		115,227		5,544,723
					8,220,267
	Department Stores -- 0.9%
	May Department Stores Co.		94,700		3,335,334
	Distributors -- 0.2%
	Genuine Parts Co.		22,700		788,371
	Household Appliance -- 0.5%
	Maytag Corp.		62,000		1,750,260
	Housewares & Specials -- 0.2%
	Newell Rubbermaid, Inc.		32,000		818,880
	Retail-Components/Electronic -- 0.6%
	Best Buy Co., Inc.		40,000		2,130,000
	Total Consumer Discretionary				17,562,108
Consumer Staples -- 8.1%
	Packaged Foods/Meats -- 2.3%
	ConAgra, Inc.		55,300		1,503,607
	Heinz (H.J.) Co.		66,600		2,544,786
	Sara Lee Corp.		227,800		4,970,596
					9,018,989
	Retail-Foods -- 0.3%
	Albertsons, Inc.(1)		52,000		1,286,480
	Tobacco -- 5.5%
	Altria Group, Inc.		335,429		19,303,939
	R.J. Reynolds Tobacco Holdings, Inc.		13,000		802,490
	UST, Inc.		24,000		913,920
					21,020,349
	Total Consumer Staples				31,325,818
Energy -- 8.3%
	Oil & Gas Exploration/Products -- 0.2%
	Kerr-McGee Corp.		16,000		836,000
	Oil & Gas Integrated -- 8.1%
	ChevronTexaco Corp.		219,629		19,404,222
	ConocoPhillips		139,724		9,622,792
	Marathon Oil Corp.		63,735		2,239,648
					31,266,662
	Total Energy				32,102,662
	Description		Shares		Value
Common Stocks (continued)
Financials -- 31.1%
	Diversified Banks -- 16.0%
	Bank of America Corp.		235,165	$	19,264,717
	Comerica, Inc.		36,019		2,072,533
	FleetBoston Financial Corp.		216,239		9,737,242
	U.S. Bancorp		165,500		4,721,715
	Wachovia Corp.		235,000		11,272,950
	Wells Fargo & Co.		254,729		14,608,708
					61,677,865
	Diversified Capital Market -- 4.5%
	J.P. Morgan Chase & Co.		418,517		17,167,567
	Insurance-Life/Health -- 0.5%
	Lincoln National Corp.		39,800		1,847,914
	Insurance-Property/Casualty -- 0.3%
	St. Paul Cos., Inc.(1)		24,814		1,060,550
	Real Estate Investment Trust -- 1.5%
	Equity Office Properties Trust		81,983		2,339,795
	Equity Residential Properties Trust		41,246		1,227,069
	Simon Property Group, Inc.		39,522		2,153,554
					5,720,418
	Regional Banks -- 6.1%
	Amsouth Bancorporation		103,400		2,616,020
	BB&T Corp.		110,972		4,122,610
	Charter One Financial, Inc.		31,000		1,122,820
	First Tennessee National Corp.		31,000		1,433,440
	Huntington Bancshares, Inc.		49,210		1,138,227
	KeyCorp		86,479		2,803,649
	National City Corp.		126,209		4,505,661
	PNC Financial Services Group		57,559		3,374,109
	Regions Financial Corp.		36,400		1,343,160
	Union Planters Corp.(1)		40,281		1,207,624
					23,667,320
	Thrifts & Mortgage Financials -- 2.2%
	Washington Mutual Bank, Inc.		189,725		8,526,242
	Total Financials				119,667,876
Healthcare -- 7.9%
	Pharmaceuticals -- 7.9%
	Merck & Co., Inc.		404,094		19,428,840
	Bristol-Myers Squibb Co.		398,377		11,082,848
	Total Healthcare				30,511,688
Industrials -- 1.6%
	Aerospace/Defense -- 1.0%
	Goodrich Corp.		31,900		940,731
	Raytheon Co.		96,000		2,918,400
					3,859,131
	Description		Shares		Value
Common Stocks (continued)
Industrials (continued)
	Services Diversified/Commercial -- 0.2%
	Deluxe Corp.		26,000	$	1,023,880
	Services-Office/Supplies -- 0.4%
	Pitney Bowes, Inc.		34,500		1,426,575
	Total Industrials				6,309,586
Information Technology -- 5.1%
	Application Software -- 0.4%
	FactSet Research Systems, Inc.		20,000		736,600
	Henry Jack & Associates, Inc.		41,500		769,825
					1,506,425
	Communications Equipment -- 0.2%
	Motorola, Inc.		50,800		937,260
	Computer Hardware -- 0.9%
	Hewlett-Packard Co.		70,717		1,605,983
	International Business Machines Corp.		20,000		1,930,000
					3,535,983
	Semiconductors -- 1.7%
	Intel Corp.		150,790		4,407,592
	Maxim Integrated Products, Inc.		20,000		998,200
	Texas Instruments, Inc.		38,000		1,164,700
					6,570,492
	System Software -- 1.9%
	Microsoft Corp.		268,482		7,114,773
	Total Information Technology				19,664,933
Materials -- 5.4%
	Chemicals-Diversified -- 4.8%
	Dow Chemical Co.		188,730		8,204,093
	Du Pont (E.I.) de Nemours & Co.		199,000		8,972,910
	PPG Industries, Inc.		22,288		1,308,083
					18,485,086
	Paper Products -- 0.4%
	MeadWestvaco Corp.		50,000		1,465,000
	Steel -- 0.2%
	Worthington Industries, Inc.		39,515		684,795
	Total Materials				20,634,881
Telecommunications -- 13.8%
	Integrated Telecommunication Services -- 13.8%
	AT&T Corp.(1)		133,000		2,663,990
	Alltel Corp.		25,000		1,295,000
	BellSouth Corp.		379,629		10,462,575
	SBC Communications, Inc.(1)		682,988		16,398,542
	Sprint Corp.		92,800		1,645,344
	Verizon Communications		535,957		20,543,232
	Total Telecommunications				53,008,683
	Description		Shares or Principal Amount		Value
Common Stocks (continued)
Utilities -- 12.1%
	Electric Utilities -- 9.0%
	Ameren Corp.		33,251	$	1,576,097
	American Electric Power Co., Inc.		81,174		2,800,503
	CenterPoint Energy, Inc.		116,267		1,216,153
	Cinergy Corp.		26,000		1,018,940
	Consolidated Edison, Inc.(1)		46,227		2,041,847
	Dominion Resources, Inc.		66,448		4,174,928
	DTE Energy Co.(1)		28,000		1,132,880
	Entergy Corp.		43,000		2,549,470
	Exelon Corp.		61,912		4,156,772
	FirstEnergy Corp.		66,918		2,585,042
	FPL Group, Inc.		37,736		2,477,368
	PPL Corp.		22,500		1,046,925
	Progress Energy, Inc.		44,500		2,054,120
	Southern Co.		149,707		4,539,116
	Xcel Energy, Inc.(1)		81,943		1,431,544
					34,801,705
	Gas Utilities -- 1.4%
	KeySpan Corp.		41,500		1,577,000
	Nicor, Inc.		32,209		1,164,033
	Peoples Energy Corp.		25,932		1,156,308
	Sempra Energy		45,972		1,457,312
					5,354,653
	Multi-Utilities -- 1.7%
	Duke Energy Corp.(1)		185,853		4,081,332
	Public Service Enterprises Group, Inc.		46,519		2,192,906
					6,274,238
	Total Utilities				46,430,596
Total Common Stocks (identified cost $322,900,720)					377,218,831
Purchased Call Options -- 0.1%
NASDAQ 100 Index, 9/18/2004 (identified cost $445,200)(1)(2)			1,600		352,000
Investment for Collateral Pool for Securities on Loan -- 5.8%
	(See Note 2 of the Financial Statements) (identified cost $22,174,552)				22,174,552
Repurchase Agreement -- 1.3%
	Agreement with Lehman Brothers, Inc., 0.980%, dated 2/27/2004, to be repurchased at $5,198,452 on 3/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 3/5/2013 (at amortized cost)	$	5,198,027		5,198,027
Total Investments -- 105.2% (idendtified cost $350,718,499)					404,943,410
Other Net Assets and Liabilities -- (5.2)%					(19,897,512	)
Total Net Assets -- 100.0%				$	385,045,898

February 29, 2004 (unaudited)

Portfolio of Investments

Large-Cap Growth & Income Fund

	Description		Shares		Value
Common Stocks -- 98.1%
Consumer Discretionary -- 10.1%
	Broadcasting & Cable -- 2.0%
	Clear Channel Communications, Inc.		60,000	$	2,582,400
	Comcast Corp., Class A(2)		59,800		1,796,392
	Echostar Communications Corp., Class A(2)		40,000		1,444,800
					5,823,592
	Department Stores -- 1.2%
	Kohl's Corp.(1)(2)		68,500		3,527,750
	Footwear -- 0.5%
	Nike, Inc., Class B		20,500		1,501,625
	General Merchandise -- 0.7%
	Dollar Tree Stores, Inc.(2)		69,600		2,150,640
	Motorcycle Manufacturing -- 1.2%
	Harley Davidson, Inc.		66,350		3,524,512
	Movies & Entertainment -- 2.0%
	Time Warner, Inc.(2)		136,500		2,354,625
	Viacom, Inc., Class B		85,700		3,296,022
					5,650,647
	Retail-Home Improvement -- 1.5%
	Lowe's Cos., Inc.		75,000		4,200,000
	Specialty Stores -- 1.0%
	Staples, Inc.		108,500		2,844,870
	Total Consumer Discretionary				29,223,636
Consumer Staples -- 10.1%
	Brewers -- 1.3%
	Anheuser-Busch Cos., Inc.		67,500		3,592,350
	Household Products -- 1.3%
	Procter & Gamble Co.		35,500		3,639,105
	Hypermarkets & Supercenters -- 2.2%
	Wal-Mart Stores, Inc.		108,000		6,432,480
	Personal Products -- 1.9%
	Estee Lauder Cos., Inc., Class A		55,000		2,343,000
	Gillette Co.		79,000		3,040,710
					5,383,710
	Soft Drinks -- 2.0%
	Coca-Cola Co.		67,504		3,372,500
	PepsiCo, Inc.		48,500		2,517,150
					5,889,650
	Tobacco -- 1.4%
	Altria Group, Inc.		70,000		4,028,500
	Total Consumer Staples				28,965,795
	Description		Shares		Value
Common Stocks (continued)
Energy -- 6.0%
	Oil & Gas-Drilling -- 0.8%
	ENSCO International, Inc.		34,500	$	1,013,265
	Noble Corp.(2)		28,350		1,151,010
					2,164,275
	Oil & Gas-Equipment & Services -- 1.9%
	Baker Hughes, Inc.		46,870		1,763,250
	BJ Services Co.(2)		58,800		2,545,452
	Smith International, Inc.(2)		23,500		1,190,745
					5,499,447
	Oil & Gas-Integrated -- 3.3%
	BP PLC, ADR		21,000		1,033,200
	ConocoPhillips		27,300		1,880,151
	Exxon Mobil Corp.		160,000		6,747,200
					9,660,551
	Total Energy				17,324,273
Financials -- 20.6%
	Asset Management -- 1.7%
	Bank of New York Co., Inc.		150,000		4,950,000
	Consumer Finance -- 2.4%
	American Express Co.(1)		62,000		3,312,040
	CIT Group, Inc.		64,000		2,526,080
	MBNA Corp.		40,000		1,093,200
					6,931,320
	Diversified Banks -- 1.0%
	Bank of America Corp.		13,600		1,114,112
	Wachovia Corp.		36,000		1,726,920
					2,841,032
	Diversified Financial Services -- 2.3%
	Citigroup, Inc.		135,000		6,785,100
	Insurance-Life/Health -- 1.2%
	Prudential Financial, Inc.		72,000		3,340,080
	Insurance-Multi-Line -- 3.4%
	American International Group, Inc.		85,000		6,290,000
	Hartford Financial Services Group, Inc.		53,600		3,510,800
					9,800,800
	Insurance-Property & Casualty -- 1.6%
	Ace Ltd.		27,500		1,236,400
	XL Capital Ltd.		44,900		3,442,034
					4,678,434
	Investment Bank & Brokerage -- 3.0%
	Goldman Sachs Group, Inc.		48,500		5,134,695
	Morgan Stanley		57,800		3,454,128
					8,588,823
	Description		Shares		Value
Common Stocks (continued)
Financials (continued)
	Reinsurance -- 0.4%
	RenaissanceRe Holdings Ltd.		21,400	$	1,133,130
	Thrifts & Mortgage Finance -- 3.6%
	Countrywide Financial Corp.		45,733		4,190,515
	Federal Home Loan Mortgage Corp.		101,500		6,284,880
					10,475,395
	Total Financials				59,524,114
Healthcare -- 12.4%
	Biotechnology -- 1.2%
	Amgen, Inc.(2)		38,900		2,471,317
	Gilead Sciences, Inc.(2)		19,500		1,057,095
					3,528,412
	Exchange Traded Funds -- 1.7%
	Pharmaceutical Holders Trust		61,000		4,983,700
	Healthcare-Equipment -- 2.0%
	Boston Scientific Corp.(1)(2)		95,000		3,880,750
	Medtronic, Inc.		40,000		1,876,000
					5,756,750
	Healthcare-Managed Care -- 1.5%
	Aetna, Inc.		52,200		4,217,238
	Pharmaceuticals -- 6.0%
	Abbott Laboratories		87,300		3,736,440
	Lilly (Eli) & Co.		16,500		1,220,010
	Pfizer, Inc.		252,508		9,254,418
	Teva Pharmaceutical Industries Ltd., ADR		47,700		3,100,500
					17,311,368
	Total Healthcare				35,797,468
Industrials -- 11.5%
	Aerospace & Defense -- 1.0%
	Northrop Grumman Corp.		28,800		2,911,968
	Airfreight & Logistics -- 0.5%
	United Parcel Service, Inc.(1)		19,000		1,341,970
	Industrial Conglomerates -- 5.5%
	3M Co.		45,000		3,510,900
	General Electric Co.		286,500		9,316,980
	Tyco International Ltd.		105,000		2,999,850
					15,827,730
	Machinery Industrial -- 2.6%
	Ingersoll-Rand Co., Class A		53,700		3,569,976
	Parker-Hannifin Corp.		70,500		3,959,985
					7,529,961
	Service-Employment -- 0.9%
	Manpower, Inc.		59,000		2,640,250
	Description		Shares		Value
Common Stocks (continued)
Industrials (continued)
	Trucking -- 1.0%
	Swift Transportation Co.(2)		135,000	$	2,902,500
	Total Industrials				33,154,379
Information Technology -- 18.5%
	Communications Equipment -- 1.5%
	Cisco Systems, Inc.(2)		188,000		4,342,800
	Computer Hardware -- 3.1%
	Dell, Inc.(2)		63,700		2,079,805
	Hewlett-Packard Co.		103,100		2,341,401
	International Business Machines Corp.		47,500		4,583,750
					9,004,956
	Electronic Manufacturing Services -- 0.9%
	Flextronics International Ltd.(1)(2)		146,000		2,642,600
	IT Consulting & Services -- 1.0%
	Accenture Ltd.(2)		120,000		2,772,000
	Semiconductors -- 3.0%
	Intel Corp.		205,000		5,992,150
	Texas Instruments, Inc.		87,500		2,681,875
					8,674,025
	Semiconductor Equipment -- 1.5%
	KLA-Tencor Corp.(2)		26,300		1,388,640
	Applied Materials, Inc.(2)		136,500		2,899,260
					4,287,900
	Services-Data Processing -- 3.7%
	Computer Sciences Corp.(2)		61,200		2,557,548
	First Data Corp.,(1)		94,000		3,852,120
	FIserv, Inc.(2)		108,500		4,189,185
					10,598,853
	Systems Software -- 3.8%
	BMC Software, Inc.(2)		67,000		1,313,200
	Microsoft Corp.		324,500		8,599,250
	Oracle Corp.(2)		83,000		1,069,040
					10,981,490
	Total Information Technology				53,304,624
Materials -- 6.5%
	Aluminum -- 1.4%
	Alcoa, Inc.(1)		111,600		4,181,652
	Chemicals-Diversified -- 0.8%
	Dow Chemical Co.		54,700		2,377,809
	Diversified Metal/Mining -- 0.6%
	Inco Ltd.(2)		43,800		1,627,608
	Forest Products -- 1.1%
	Weyerhaeuser Co.		46,500		3,034,125
	Description		Shares or Principal Amount		Value
Common Stocks (continued)
Materials (continued)
	Industrial Gases -- 1.9%
	Air Products & Chemicals, Inc.		57,500	$	2,773,800
	Praxair, Inc.		77,800		2,825,696
					5,599,496
	Paper Packaging -- 0.7%
	Smurfit-Stone Container Corp.(2)		110,000		2,041,600
	Total Materials				18,862,290
Telecommunication Services -- 1.4%
	Integrated Telecommunication Services -- 1.4%
	Verizon Communications, Inc.		101,000		3,871,330
Utility -- 1.0%
	Exchange Traded Funds -- 1.0%
	Amex Utilities Select Index(1)		121,000		2,935,460
Total Common Stocks (identified cost $216,363,089)					282,963,369
Investment for Collateral Pool for Securities on Loan -- 5.2% (See Note 2 of the Financial Statements) (identified cost $14,848,863)					14,848,863
Repurchase Agreement -- 0.8%
	Agreement with Lehman Brothers, Inc., 0.980%, dated 2/27/2004, to be repurchased at $2,382,917 on 3/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 9/09/2013 (at amortized cost)	$	2,382,722		2,382,722
Total Investments -- 104.1% (identified cost $233,594,674)					300,194,954
Other Net Assets and Liabilities -- (4.1)%					(11,716,005	)
Total Net Assets -- 100.0%				$	288,478,949

February 29, 2004 (unaudited)

Portfolio of Investments

Mid-Cap Value Fund

	Description		Shares		Value
Common Stocks -- 91.1%
Consumer Discretionary -- 6.7%
	Apparel/Accessory -- 1.4%
	Jones Apparel Group, Inc.		156,400	$	5,833,720
	Auto Parts & Equipment -- 0.9%
	Johnson Controls, Inc.		66,000		3,849,120
	Description		Shares		Value
Common Stocks (continued)
Consumer Discretionary (continued)
	Hotel/Resort/Cruise -- 0.9%
	Starwood Hotels & Resorts Worldwide, Inc.(1)		90,000	$	3,510,900
	Household Appliances -- 0.1%
	Snap-On, Inc.		10,000		320,000
	Leisure Products -- 3.4%
	Brunswick Corp.		200,000		7,872,000
	Mattel, Inc.		305,500		5,804,500
					13,676,500
	Total Consumer Discretionary				27,190,240
Consumer Staples -- 8.5%
	Packaged Foods/Meats -- 1.9%
	Smithfield Foods, Inc.(1)(2)		307,500		7,865,850
	Retail-Drugs -- 2.1%
	CVS Corp.		226,400		8,490,000
	Retail-Food -- 2.9%
	Kroger Co.		341,070		6,555,365
	SUPERVALU, Inc.		182,700		5,170,410
					11,725,775
	Soft Drinks -- 1.6%
	Coca-Cola Enterprises, Inc.		279,000		6,503,490
	Total Consumer Staples				34,585,115
Energy -- 5.6%
	Oil & Gas Drilling -- 1.9%
	Noble Corp.(2)		190,600		7,738,360
	Oil & Gas Exploration/Products -- 3.7%
	Burlington Resources, Inc.		136,890		8,013,541
	Noble Energy, Inc.		147,420		6,896,308
					14,909,849
	Total Energy				22,648,209
Financials -- 12.3%
	Insurance-Life/Health -- 3.0%
	Jefferson-Pilot Corp.		105,300		5,627,232
	Protective Life Corp.		175,000		6,657,000
					12,284,232
	Insurance-Property/Casualty -- 3.5%
	ACE Ltd.		147,500		6,631,600
	SAFECO Corp.		167,500		7,537,500
					14,169,100
	Reinsurance -- 1.5%
	PartnerRe Ltd.		110,000		6,076,400
	Thrifts & Mortgage Finance -- 4.3%
	Countrywide Financial Corp.		119,343		10,935,399
	MGIC Investment Corp.		100,000		6,618,000
					17,553,399
	Total Financials				50,083,131
	Description		Shares		Value
Common Stocks (continued)
Healthcare -- 5.1%
	Healthcare-Distributors -- 1.8%
	AmerisourceBergen Corp.		110,500	$	6,412,315
	Omnicare, Inc.		19,700		907,382
					7,319,697
	Healthcare-Services -- 1.3%
	Apria Healthcare Group, Inc.(2)		160,500		5,017,230
	Healthcare-Supplies -- 2.0%
	Bausch & Lomb, Inc.(1)		138,000		8,195,820
	Total Healthcare				20,532,747
Industrials -- 19.4%
	Aerospace/Defense -- 1.5%
	Northrop Grumman Corp.		59,000		5,965,490
	Commercial Printing -- 1.8%
	Donnelley (R.R.) & Sons Co.(1)		231,000		7,336,560
	Electrical Components -- 1.5%
	Hubbell, Inc., Class B		151,500		6,014,550
	Industrial Conglomerates -- 1.8%
	Allete, Inc.		226,290		7,313,693
	Machinery Industrial -- 1.4%
	Parker-Hannifin Corp.		99,500		5,588,915
	Railroad -- 1.6%
	CSX Corp.		210,600		6,640,218
	Services-Diversified Commercials -- 3.4%
	Viad Corp.		272,700		6,667,515
	Watson Wyatt & Co. Holdings(2)		304,430		7,214,991
					13,882,506
	Services-Employment -- 1.5%
	Manpower, Inc.		139,000		6,220,250
	Services-Environmental -- 1.7%
	Republic Services, Inc.		253,250		6,645,280
	Trade Companies & Distribution -- 1.3%
	Grainger (W.W.), Inc.(1)		115,100		5,438,475
	Trucking -- 1.9%
	Swift Transportation Co., Inc.(2)		363,290		7,810,735
	Total Industrials				78,856,672
Information Technology -- 14.6%
	Computer Storage/Peripheral -- 1.7%
	Imation Corp.		191,650		6,765,245
	Description		Shares		Value
Common Stocks (continued)
Information Technology (continued)
	IT Consulting & Services -- 2.2%
	American Management System, Inc.(2)		407,000	$	6,223,030
	ProQuest Co.(2)		91,800		2,759,508
					8,982,538
	Office Electronics -- 3.2%
	IKON Office Solutions, Inc.		547,500		6,433,125
	Xerox Corp.(1)(2)		463,500		6,553,890
					12,987,015
	Services-Data Processing -- 5.7%
	Bisys Group, Inc.(2)		326,500		5,762,725
	Computer Sciences Corp.(1)(2)		105,300		4,400,487
	Convergys Corp.(1)(2)		380,000		6,178,800
	Sungard Data Systems, Inc.(2)		231,660		6,734,356
					23,076,368
	Systems Software -- 1.8%
	BMC Software, Inc.(2)		377,000		7,389,200
	Total Information Technology				59,200,366
Materials --11.5%
	Construction Materials -- 1.4%
	Martin Marietta Materials		117,100		5,748,439
	Chemicals/Specialty -- 1.5%
	Fuller (H.B.) Co.		221,100		6,036,030
	Diversified Metal/Mining -- 1.9%
	Arch Coal, Inc.		261,040		7,643,251
	Steel -- 1.7%
	Nucor Corp.(1)		110,600		6,956,740
	Paper Products -- 1.8%
	Bowater, Inc.		160,000		7,344,000
	Paper Packaging -- 3.2%
	Packaging Corp. of America(1)		270,630		6,376,043
	Smurfit-Stone Container Corp.(1)(2)		365,400		6,781,824
					13,157,867
	Total Materials				46,886,327
Telecommunication Services -- 3.9%
	Integrated Telecommunication Services -- 3.9%
	Alltel Corp.		142,500		7,381,500
	Citizens Communications Co., Class B(1)		658,000		8,672,440
	Total Telecommunication Services				16,053,940
	Description		Shares or Principal Amount		Value
Common Stocks (continued)
Utilities -- 3.5%
	Electric Utilities -- 3.5%
	Cinergy Corp.		126,360	$	4,952,048
	TECO Energy, Inc.(1)		284,310		4,284,552
	Xcel Energy, Inc.(1)		284,300		4,966,721
	Total Utilities				14,203,321
Total Common Stocks (identified cost 293,912,378)					370,240,068
U.S. Treasury -- 0.3%
	United States Treasury Bill, 3/18/2004(3)	$	950,000		949,630
	United States Treasury Bill, 5/13/2004(3)		500,000		499,077
Total U.S. Treasury (identified cost $1,448,728)					1,448,707
Investment for Collateral Pool for Securities on Loan -- 11.2% (See Note 2 of the Financial Statements) (identified cost $45,396,254)					45,396,254
Repurchase Agreement -- 9.4%
	Agreement with Lehman Brothers, Inc., 0.980%, dated 2/27/2004, to be repurchased at $38,253,590 on 3/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 5/1/2030 (at amortized cost)		38,250,466		38,250,466
Total Investments -- 112.0% (identified cost $379,007,826)					455,335,495
Other Net Assets and Liabilities -- (12.0)%					(48,880,528	)
Total Net Assets -- 100.0%				$	406,454,967

February 29, 2004 (unaudited)

Portfolio of Investments

Mid-Cap Growth Fund

	Description		Shares		Value
Common Stocks -- 91.6%
Consumer Discretionary -- 20.9%
	Broadcasting & Cable -- 3.2%
	Cox Radio, Inc., Class A(2)		160,000	$	3,512,000
	Radio One, Inc., Class D(2)		275,000		5,010,500
					8,522,500
	Casinos & Gaming -- 1.6%
	Caesars Entertainment, Inc.(2)		350,000		4,305,000
	Description		Shares		Value
Common Stocks (continued)
Consumer Discretionary (continued)
	General Merchandise -- 3.6%
	Dollar Tree Stores, Inc.(2)		200,000	$	6,180,000
	Family Dollar Stores, Inc.		90,000		3,423,600
					9,603,600
	Movies & Entertainment -- 1.5%
	Regal Entertainment Group		200,000		4,070,000
	Restaurants -- 6.7%
	CBRL Group, Inc.		110,000		4,177,800
	Outback Steakhouse, Inc.		95,000		4,597,050
	Ruby Tuesday, Inc.(1)		160,000		5,068,800
	Wendy's International, Inc.		100,000		4,067,000
					17,910,650
	Retail-Computer/Electronic -- 1.3%
	Circuit City Stores, Inc.		300,000		3,354,000
	Specialty Stores -- 3.0%
	Michaels Stores, Inc.		165,000		7,926,600
	Total Consumer Discretionary				55,692,350
Energy -- 5.3%
	Oil & Gas Drilling -- 1.3%
	ENSCO International, Inc.		120,000		3,524,400
	Oil & Gas Equipment Services -- 1.3%
	BJ Services Co.(2)		80,000		3,463,200
	Oil & Gas Exploration & Production -- 2.7%
	Pioneer Natural Resources, Inc.		120,000		3,854,400
	Southwestern Energy Co.(2)		150,000		3,369,000
					7,223,400
	Total Energy				14,211,000
Financials -- 8.8%
	Asset Management -- 1.7%
	Investors Financial Services Corp.(2)		100,000		4,403,000
	Insurance-Property & Casualty -- 2.6%
	Ambac Financial Group, Inc.		90,000		7,038,000
	Regional Banks -- 1.3%
	National Commerce Financial Corp.		125,000		3,656,250
	Reinsurance -- 3.2%
	Everest Re Group Ltd.		50,000		4,369,500
	Reinsurance Group of America		100,000		4,045,000
					8,414,500
	Total Financials				23,511,750
	Description		Shares		Value
Common Stocks (continued)
Healthcare -- 19.0%
	Biotechnology -- 3.0%
	Amylin Pharmaceuticals, Inc.(1)(2)		205,000	$	4,698,600
	Gilead Sciences, Inc.(2)		60,000		3,252,600
					7,951,200
	Healthcare-Distributors -- 3.8%
	AmerisourceBergen Corp.		75,000		4,352,250
	Omnicare, Inc.		125,000		5,757,500
					10,109,750
	Healthcare Facility -- 1.2%
	Health Management Association, Class A(1)		140,000		3,120,600
	Healthcare-Services -- 4.2%
	AdvancePCS(2)		40,000		2,760,000
	Apria Healthcare Group, Inc.(2)		130,000		4,063,800
	Caremark Rx, Inc.(1)(2)		135,000		4,355,100
					11,178,900
	Healthcare Supplies -- 2.0%
	Edwards Lifesciences Corp.(2)		165,000		5,313,000
	Pharmaceuticals -- 4.8%
	Barr Laboratories, Inc.(2)		65,000		5,031,650
	Endo Pharmaceuticals Holdings, Inc.(2)		145,000		3,519,150
	Medicis Pharmaceutical Corp., Class A		110,000		4,330,700
					12,881,500
	Total Healthcare				50,554,950
Industrials -- 2.9%
	Airfreight & Logistics -- 1.5%
	Expeditors International Washington, Inc.(1)		100,000		3,854,000
	Services-Diversified & Commercial -- 1.4%
	ChoicePoint, Inc.(2)		100,000		3,766,000
	Total Industrials				7,620,000
Information Technology -- 34.7%
	Application Software -- 7.3%
	Amdocs Ltd.(2)		160,000		4,460,800
	Cognos, Inc.(2)		125,000		3,905,000
	Fair Isaac & Co., Inc.		130,000		7,753,200
	Manhattan Associates, Inc.(2)		115,000		3,295,900
					19,414,900
	Communications Equipment -- 5.4%
	Avocent Corp.(2)		75,000		2,900,250
	Comverse Technology, Inc.(2)		175,000		3,451,000
	Emulex Corp.(1)(2)		350,000		8,113,000
					14,464,250
	Description		Shares		Value
Common Stocks (continued)
Information Technology (continued)
	Computer Storage/Peripheral -- 4.7%
	Maxtor Corp.(1)(2)		500,000	$	5,125,000
	Seagate Technology Holdings(2)		150,000		2,595,000
	Storage Technology Corp.(2)		160,000		4,699,200
					12,419,200
	Electronic Equipment -- 1.8%
	Vishay Intertechnology, Inc.(2)		210,000		4,727,100
	Home Entertainment Software -- 1.5%
	Take-Two Interactive Software, Inc.(1)(2)		125,000		3,912,500
	Semiconductors -- 8.7%
	Fairchild Semiconductor International, Inc., Class A(1)(2)		210,000		5,418,000
	Integrated Circuit System, Inc.(2)		160,000		4,406,400
	Intersil Holding Corp.(1)		290,000		6,841,100
	LSI Logic Corp.(2)		250,000		2,525,000
	Power Integrations, Inc.(2)		130,000		3,832,400
					23,022,900
	Semiconductors Equipment -- 3.1%
	Amkor Technology, Inc.(2)		250,000		3,867,500
	Lam Research Corp.(2)		175,000		4,474,750
					8,342,250
	Services-Data Processing -- 0.9%
	Affiliated Computer Services, Inc., Class A(1)(2)		50,000		2,413,000
	Technology Distribution -- 1.3%
	CDW Corp.(1)		50,000		3,459,000
	Total Information Technology				92,175,100
Total Common Stocks (identified cost $218,172,616)					243,765,150
Investment for Collateral Pool for Securities on Loan -- 8.2% (See Note 2 of the Financial Statements) (identified cost $21,813,500)					21,813,500
	Description		Principal Amount		Value
Repurchase Agreement -- 7.5%
	Agreement with Lehman Brothers, Inc., 0.980%, dated 2/27/2004, to be repurchased at $20,069,907 on 3/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 7/15/2032 (at amortized cost)	$	20,068,268	$	20,068,268
Total Investments -- 107.3% (identified cost $260,054,384)					285,646,918
Other Net Assets and Liabilities -- (7.3)%					(19,511,813	)
Total Net Assets -- 100.0%				$	266,135,105

February 29, 2004 (unaudited)

Portfolio of Investments

Small-Cap Growth Fund

	Description		Shares	Value
Common Stocks -- 96.9%
Consumer Discretionary -- 28.9%
	Broadcasting & Cable -- 5.6%
	Alliance Atlantis Communications, Inc., Class B(2)		245,000	$	4,037,600
	Sinclair Broadcast Group, Inc.(2)		167,000		2,097,520
	Spanish Broadcasting System, Inc.(2)		199,200		2,231,040
					8,366,160
	Casinos & Gaming -- 2.6%
	Empire Resorts, Inc.(2)		228,000		2,772,480
	Mikohn Gaming Corp.(1)(2)		213,240		1,089,656
					3,862,136
	Hotel/Resort/Cruise -- 1.5%
	Extended Stay America, Inc.(1)		142,000		2,206,680
	Movies & Entertainment -- 1.1%
	AMC Entertainment, Inc.		115,000		1,650,250
	Restaurants -- 8.0%
	California Pizza Kitchen, Inc.(1)(2)		84,000		1,541,400
	Landrys Seafood Restaurants, Inc.		175,000		5,223,750
	O'Charleys, Inc.(2)		153,000		2,792,250
	Ruby Tuesday, Inc.		77,000		2,439,360
					11,996,760
	Description		Shares	Value
Common Stocks (continued)
Consumer Discretionary (continued)
	Retail-Apparel -- 4.1%
	Christopher & Banks Corp.		110,000	$	2,049,300
	Gymboree Corp.(2)		149,000		2,197,750
	Wet Seal, Inc., Class A(1)(2)		226,000		1,880,320
					6,127,370
	Retail Internet -- 2.1%
	NetFlix Com Inc.		90,000		3,096,000
	Specialty Stores -- 3.9%
	Cost Plus, Inc.(2)		50,500		1,956,370
	Select Comfort Corp.(2)		140,000		3,789,800
					5,746,170
	Total Consumer Discretionary				43,051,526
Energy -- 4.5%
	Oil & Gas -- Exploration Products -- 4.5%
	Carrizo Oil & Gas, Inc.(1)(2)		126,000		851,760
	Pioneer Natural Resources, Inc.		67,000		2,152,040
	Quicksilver Resources, Inc.(1)(2)		42,000		1,732,080
	Southwestern Energy Co.(2)		85,000		1,909,100
	Total Energy				6,644,980
Financials -- 6.5%
	Regional Banks -- 4.1%
	City National Corp.		31,000		1,926,960
	Cullen Frost Bankers, Inc.		60,000		2,545,200
	Southwest Bancorp. of Texas, Inc.		43,000		1,680,440
					6,152,600
	Reinsurance -- 2.4%
	Scottish Annuity & Life Holdings Ltd.		152,000		3,584,160
	Total Financials				9,736,760
Healthcare -- 17.5%
	Biotechnology -- 4.9%
	Amylin Pharmaceuticals, Inc.(1)(2)		115,000		2,635,800
	Cell Genesys, Inc.(2)		62,000		875,440
	VaxGen, Inc.(2)		105,000		1,083,600
	XOMA Ltd.(2)		443,000		2,658,000
					7,252,840
	Healthcare-Equipment -- 2.6%
	Possis Corp.(1)(2)		74,000		1,908,460
	Zoll Medical Corp.(2)		53,000		1,948,810
					3,857,270
	Healthcare-Facility -- 1.3%
	Triad Hospitals, Inc.(2)		57,000		2,011,530
	Healthcare-Supplies -- 4.3%
	Cooper Companies, Inc.(1)		37,000		1,750,470
	Edwards Lifesciences Corp.(2)		67,000		2,157,400
	Description		Shares	Value
Common Stocks (continued)
Healthcare (continued)
	Healthcare-Supplies (continued)
	ICU Medical, Inc.(1)(2)		76,000	$	2,546,000
					6,453,870
	Healthcare-Services -- 1.7%
	Apria Healthcare Group, Inc.(2)		80,000		2,500,800
	Pharmaceuticals -- 2.7%
	Bradley Pharmaceuticals, Inc.(1)(2)		105,500		2,595,300
	Hollis-Eden Pharmaceuticals, Inc.(1)(2)		110,000		1,441,000
					4,036,300
	Total Healthcare				26,112,610
Information Technology -- 39.2%
	Application Software -- 6.1%
	Kronos, Inc.(2)		90,000		3,028,500
	Manhattan Associates, Inc.(2)		86,000		2,464,760
	SERENA Software, Inc.(1)(2)		175,000		3,624,250
					9,117,510
	Communications Equipment -- 5.2%
	Avocent Corp.(2)		76,000		2,938,920
	Emulex Corp.(2)		100,000		2,318,000
	Extreme Networks, Inc.(2)		300,000		2,415,000
					7,671,920
	Computer Hardware -- 0.6%
	AlphaSmart, Inc.(1)(2)		173,500		955,985
	Computer Storage/Peripheral -- 7.4%
	Advanced Digital Information Corp.(2)		150,000		1,887,000
	Applied Films Corp.(2)		71,000		2,472,220
	Komag, Inc.(1)(2)		145,000		3,311,800
	Maxtor Corp.(2)		300,000		3,075,000
	Overland Storage, Inc.(2)		13,850		249,439
					10,995,459
	Home Entertainment Software -- 3.2%
	Take-Two Interactive Software, Inc.(2)		150,000		4,695,000
	Internet Software & Services -- 2.5%
	Altiris, Inc.(2)		120,000		3,270,000
	Internap Network Services Corp.(2)		236,100		443,868
					3,713,868
	Semiconductors -- 5.4%
	O2Micro International Ltd.(2)		95,000		1,725,200
	Power Integrations, Inc.(2)		110,000		3,242,800
	TTM Technologies(2)		190,000		3,070,400
					8,038,400
	Description		Shares or Principal Amount	Value
Common Stocks (continued)
Information Technology (continued)
	Semiconductor Equipment -- 6.3%
	ASE Test Ltd.(2)		170,000	$	2,102,900
	Cymer, Inc.(2)		42,000		1,618,680
	Entegris, Inc.(2)		236,000		2,867,400
	Varian Semiconductor Equipment Associates, Inc.(2)		69,000		2,814,510
					9,403,490
	Technology Distributors -- 2.5%
	Ingram Micro, Inc., Class A(2)		200,000		3,796,000
	Total Information Technology				58,387,632
Utilities -- 0.3%
	Electric Utilities -- 0.3%
	KFX, Inc.(1)(2)		60,000		526,800
Total Common Stock (identified cost $126,795,902)					144,460,308
Warrants -- 0.0%
	Casinos & Gaming -- 0.0%
	Mikohn Gaming Corp., 8/15/2008 (identified cost $70)(2)		69,985		0
Purchase Call Options -- 0.6%
	NetFlix Com Inc., 6/30/2004 (identified cost $936,396)(2)		281,200		801,420
Investment for Collateral Pool for Securities on Loan -- 13.8% (See Note 2 of the Financial Statements) (identified cost $20,527,220)					20,527,220
U.S. Treasury Bill -- 0.1%(3)
	5/13/2004 (identified cost $199,639)	$	200,000		199,631
Repurchase Agreement -- 6.2%
	Agreement with Lehman Brothers, Inc., 0.980%, dated 2/27/2004, to be repurchased at $9,279,128 on 3/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 11/17/2009 (at amortized cost)		9,278,370		9,278,370
Total Investments -- 117.6% (identified cost $157,737,597)					175,266,949
Other Net Assets and Liabilities -- (17.6)%					(26,251,003	)
Total Net Assets -- 100.0%				$	149,015,946

February 29, 2004 (unaudited)

Portfolio of Investments

International Stock Fund

	Description		Shares		Value
Common Stocks -- 95.7%
	Australia -- 2.3%
	News Corp. Ltd.(1)		768,200	$	7,213,218
	WMC Resources Ltd.(2)		507,800		2,049,078
					9,262,296
	Brazil -- 3.7%
	Companhia Cervajaria Brahma, ADR		77,700		2,090,130
	Companhia Vale Do Rio Doce, ADR		72,600		4,203,540
	Petroleo Brasileiro SA, ADR		118,900		3,709,680
	Tele Norte Leste Participacoes S.A., ADR		83,300		1,212,015
	Unibanco Uniao de Bancos Brasileiros SA, GDR		167,500		3,810,625
					15,025,990
	Canada -- 1.0%
	Precision Drilling Corp.(2)		88,534		4,243,435
	Cayman Islands -- 0.8%
	SINA.com(2)		75,000		3,313,575
	China -- 1.1%
	China Petroleum and Chemical Corp. (Sinopec)		10,770,000		4,531,140
	Denmark -- 2.0%
	Dampskibsselskabet Svendborg AS, Class B		989		8,322,303
	Finland -- 0.5%
	Nokia Oyj(1)		97,900		2,147,373
	France -- 1.8%
	AXA(2)		85,800		1,972,703
	Credit Agricole SA(1)		124,300		3,201,209
	Groupe Danone		11,501		2,007,547
					7,181,459
	Germany -- 4.9%
	Deutsche Bank AG(1)		52,500		4,506,931
	Metro AG(1)		95,000		4,256,173
	Siemens AG		96,300		7,434,309
	T-Online International AG(2)		282,913		3,861,287
					20,058,700
	Greece -- 0.3%
	Hellenic Telecommunication Organization SA		87,000		1,309,716
	Hong Kong -- 4.6%
	Esprit Holdings Ltd.		1,459,500		5,756,028
	Henderson Land Development Co. Ltd.		685,000		3,475,907
	Sun Hung Kai Properties		437,000		4,294,606
	Swire Pacific Ltd., Class A		719,000		5,080,097
					18,606,638
	Indonesia -- 2.2%
	PT Bank Central Asia		6,073,500		2,621,913
	PT Telekomunikasi Indonesia		7,280,900		6,286,289
					8,908,202
	Description		Shares		Value
Common Stocks (continued)
	Ireland -- 0.7%
	Bank of Ireland		207,300	$	2,733,869
	Israel -- 1.0%
	Teva Pharmaceutical Industries Ltd., ADR		62,000		4,030,000
	Italy -- 1.3%
	Banca Intesa SPA		463,100		1,722,735
	Sanpaolo IMI SpA(1)		280,900		3,617,134
					5,339,869
	Japan -- 26.7%
	Canon, Inc.		87,000		4,245,068
	Credit Saison Co. Ltd.		186,100		4,949,151
	Daiwa Securities Group, Inc.		595,000		3,998,077
	Fanuc Ltd.		99,600		6,254,918
	Funai Electric Co. Ltd.		15,300		2,147,196
	Hitachi Construction Machinery Co. Ltd.		363,000		5,154,145
	Ito-Yokado Co. Ltd.		96,000		3,620,817
	JAF Co.		6,700		524,420
	Mitsubishi Estate Co., Ltd.		657,000		7,650,515
	Mitsubishi Tokyo Financial Group, Inc.		645		4,959,949
	NTT DoCoMo, Inc.		1,982		4,118,771
	Nitto Denko Corp.		54,400		2,689,248
	Nomura Holdings, Inc.		469,700		7,460,333
	Oki Electric Ind		745,000		3,314,597
	Orix Corp.		54,000		4,968,188
	SMC Corp.		29,200		3,424,287
	Seiyu		721,000		2,376,161
	Shin-Etsu Chemical Co.		48,500		1,886,987
	Softbank Corp.(1)		129,700		4,796,887
	Sompo Japan Insurance, Inc.		635,000		5,388,795
	Sumitomo Mitsui Financial Group, Inc.		1,199		6,673,612
	Suzuki Motor Corp. Ltd.		400,700		6,445,095
	TDK Corp.		41,100		2,867,048
	Vodafone Holdings K.K.		1,405		3,228,407
	Yamada Denki		87,600		2,782,734
	Yaskawa Electric Corp.		427,000		3,037,296
					108,962,702
	Korea, Republic Of -- 5.2%
	Daewoo Heavy Industries & Machinery Ltd.(2)		766,980		6,670,806
	Kookmin Bank		48,600		2,024,828
	Samsung Electronics Co.		26,730		12,361,349
					21,056,983
	Netherlands -- 4.1%
	ASM Lithography Holding NV(2)		258,820		4,781,860
	Koninklijke (Royal) Philips Electronics NV(1)		389,800		11,857,503
					16,639,363
	Peru -- 0.4%
	Cia de Minas Buenaventura SA, Class B, ADR		68,800		1,665,648
	Description		Shares		Value
Common Stocks (continued)
	Russia -- 2.8%
	LUKOIL, ADR		39,400	$	4,416,740
	YUKOS, ADR		138,800		6,978,864
					11,395,604
	Singapore -- 2.1%
	DBS Group Holdings Ltd.		218,900		1,890,895
	Venture Manufacturing (Singapore) Ltd.		519,200		6,559,600
					8,450,495
	South Africa -- 0.5%
	ABSA Group Ltd.		302,000		2,129,935
	Spain -- 3.0%
	Banco Santander Central Hispano, S.A.		411,960		4,776,871
	Telefonica SA(1)		454,360		7,388,363
					12,165,234
	Sweden -- 2.0%
	Atlas Copco AB, Class A(1)		113,810		4,082,533
	Telefonaktiebolaget LM Ericsson		1,386,000		4,048,322
					8,130,855
	Switzerland -- 2.4%
	Roche Holding AG		29,400		3,040,739
	UBS AG(1)		91,700		6,754,784
					9,795,523
	Thailand -- 2.3%
	Land & Houses Public Co. Ltd.		5,731,200		1,872,722
	Siam Cement Co. Ltd.(2)		1,095,216		7,384,869
					9,257,591
	United Kingdom -- 15.3%
	BHP Billiton PLC		251,879		2,313,184
	BP PLC		1,185,000		9,533,374
	GlaxoSmithKline PLC		273,000		5,689,308
	Kingfisher PLC		869,100		4,839,024
	Rio Tinto PLC		100,400		2,689,607
	Smith & Nephew PLC		650,100		6,202,979
	Standard Chartered PLC		373,500		6,443,618
	Tesco PLC		2,384,342		11,413,976
	Vodafone Group PLC		3,955,500		9,872,039
	WPP Group PLC		291,500		3,262,318
					62,259,427
	United States -- 0.7%
	Sohu.com, Inc.(1)		107,164		3,011,308
Total Common Stocks (identified cost $326,890,210)					389,935,233
Investment for Collateral Pool for Securities on Loan -- 14.3% (See Note 2 of the Financial Statements) (identified cost $58,444,899)					58,444,899
	Description		Principal Amount		Value
Repurchase Agreement -- 3.2%
Agreement with State Street Corp., 0.350%, dated 2/27/2004, to be repurchased at $13,057,381 on 3/1/2004, collateralized by a U.S. Treasury Bond maturing 2/15/2021 (at amortized cost)		$	13,057,000	$	13,057,000
Total Investments -- 113.2% (identified cost $398,392,109)(3)					461,437,132
Other Net Assets and Liabilities -- (13.2)%					(53,980,220	)
Total Net Assets -- 100.0%				$	407,456,912

Industry Diversification

Industry		Market Value		% of Total Net Assets
Automobiles	$	6,445,095		1.6	%
Beverages		2,090,130		0.5
Chemicals		4,576,235		1.1
Commercial Banks		55,738,973		13.7
Communications Equipment		6,195,695		1.5
Conductor Equipment & Products		17,143,209		4.2
Construction Materials		7,384,869		1.8
Diversified Financial Services		29,110,201		7.1
Diversified Telecommunication Services		15,787,773		3.9
Electrical Equipment		6,351,893		1.6
Electronic Equipment & Instrument		9,426,648		2.3
Energy Equipment & Service		8,660,175		2.1
ESS Telecommunication Services		21,489,114		5.3
Food & Staple Retailing		13,790,137		3.4
Food Products		2,007,547		0.5
Healthcare Equipment & Supply		6,202,979		1.5
Household Durables		11,857,503		2.9
Industrial Conglomerates		7,434,309		1.8
Insurance		7,361,498		1.8
Internet & Catalog Retail		6,324,883		1.6
Internet Software & Service		4,796,887		1.2
Leisure Equipment & Products		2,147,196		0.5
Machinery		25,586,689		6.3
Marine		8,322,303		2.0
Media		10,475,536		2.6
Metals & Mining		12,921,057		3.2
Multiline Retail		12,716,014		3.1
Office Electronics		4,245,068		1.0
Oil & Gas		24,753,058		6.1
Pharmaceuticals		12,760,047		3.1
Real Estate		17,293,750		4.3
Specialty Retail		8,538,762		2.1
Total Common Stocks		389,935,233		95.7
Investment for Collateral Pool for Securities on loan		58,444,899		14.3
Repurchase Agreement		13,057,000		3.2
Total Investments		461,437,132		113.2
Other Net Assets & Liabilities		(53,980,220	)	(13.2	)
Total Net Assets	$	407,456,912		100.0	%

February 29, 2004 (unaudited)

Portfolio of Investments

Government Income Fund

	Description		Principal Amount		Value
Asset-backed Securities -- 5.0%
	Green Tree Home Equity Loan Trust 1998-B, Class B1, 7.810%, 11/15/2029	$	6,000,000	$	6,201,758
	Greenwich Capital Acceptance 1995-BA1, Class A4, 7.150%, 8/10/2020		10,643,000		11,048,026
Total Asset-Backed Securities (identified cost $16,665,899)					17,249,784
Collateralized Mortgage Obligations -- 12.7%
	Federal Home Loan Mortgage Corp., 1.220%, 3/25/2004, REMIC (Series T-32-A1)(4)(5)		5,228,003		5,250,137
	Federal Home Loan Mortgage Corp., 6.250%, 9/15/2023, REMIC (Series 1666H)(5)		15,000,000		15,734,262
	Federal Home Loan Mortgage Corp., 6.500%, 10/15/2016, REMIC (Series 1702-PK)(5)		10,000,000		10,512,675
	Federal National Mortgage Association, 1.340%, 3/25/2004, REMIC (Series 2001-25-FA)(4)(5)		7,749,159		7,757,213
	Salomon Brothers Mortgage Securities VII 2003-CDCA A2 FRN, 1.410%, 3/15/2004(4)(5)		5,000,000		4,989,350
Total Collateralized Mortgage Obligations (identified cost $41,122,436)					44,243,637
Corporate Bonds -- 9.3%
	American Express Credit Corp., 1.164%, 3/14/2004(4)		4,000,000		4,001,656
	DaimlerChrysler North America Holding Corp. FRN, 1.970%, 3/29/2004(4)		4,000,000		4,025,868
	FPL Group, Inc. FRN, 1.470%, 3/30/2004(4)		4,000,000		4,003,048
	Ford Motor Credit Co., 7.600%, 8/1/2005		5,000,000		5,334,605
	General Motors Acceptance Corp. FRN, 3.020%, 5/19/2004(4)(5)		4,000,000		3,997,680
	HSB Capital I FRN, 2.030%, 4/15/2004(4)		3,000,000		2,966,781
	SLM Corp. FRN, 1.370%, 3/15/2004(4)		4,000,000		4,014,528
	TXU Capital FRN, 2.505%, 4/1/2004(4)		5,000,000		4,408,155
Total Corporate Bonds (identified cost $33,220,800)					32,752,321
	Description		Principal Amount		Value
Mortgage Backed Securities -- 92.5%
	Federal Home Loan Mortgage Corporation -- 15.5%
	5.000%, 8/1/2014	$	7,591,190	$	7,815,062
	5.000%, 10/1/2033		5,896,859		5,913,272
	5.500%, 11/1/2018		9,419,923		9,825,860
	5.500%, 12/1/2034(6)		15,000,000		15,356,250
	6.500%, 9/1/2016		974,594		1,035,982
	6.500%, 2/1/2031		2,697,526		2,839,525
	6.500%, 8/1/2031		5,966,365		6,278,683
	7.000%, 11/1/2009		803,613		849,665
	7.500%, 9/1/2013		326,109		352,940
	7.500%, 4/1/2024		743,808		803,994
	7.500%, 4/1/2027		459,329		494,947
	8.000%, 8/1/2030		702,194		759,154
	8.500%, 9/1/2024		343,061		375,288
	9.000%, 6/1/2019		618,940		689,072
	9.500%, 2/1/2025		554,561		621,657
					54,011,351
	Federal National Mortgage Association -- 60.8%
	5.000%, 5/1/2018		4,596,164		4,725,638
	5.000%, 12/1/2019(6)		40,000,000		41,075,000
	5.000%, 12/1/2034(6)		10,000,000		10,018,750
	5.500%, 10/1/2017		12,107,782		12,633,161
	5.500%, 12/1/2034(6)		36,000,000		36,832,500
	6.000%, 9/1/2013		3,225,712		3,408,781
	6.000%, 10/1/2016		1,810,075		1,909,929
	6.000%, 3/1/2032		18,526,607		19,370,388
	6.000%, 7/1/2033		14,737,654		15,363,029
	6.000%, 12/1/2034(6)		30,000,000		31,237,500
	6.500%, 9/1/2016		1,430,172		1,522,456
	6.500%, 9/1/2016		2,486,585		2,647,037
	6.500%, 8/1/2030		12,875,724		13,559,236
	6.500%, 12/1/2031		975,148		1,026,358
	7.000%, 12/1/2010		1,368,632		1,445,852
	7.000%, 3/1/2029		1,195,780		1,271,387
	7.000%, 7/1/2029		2,993,710		3,182,999
	7.000%, 2/1/2030		2,487,124		2,644,382
	7.500%, 12/1/2009		2,726,934		2,929,367
	7.500%, 10/1/2030		823,135		882,158
	8.000%, 10/1/2028		2,793,455		3,049,206
	8.000%, 4/1/2030		1,043,166		1,130,544
					211,865,658
	Government National Mortgage Association -- 16.2%
	5.000%, 6/15/2033		1,791,496		1,799,668
	5.500%, 9/15/2033		11,763,234		12,093,980
	6.000%, 12/1/2034(6)		15,000,000		15,665,625
	6.500%, 12/15/2029		1,696,590		1,794,495
	6.500%, 9/15/2032(1)		7,269,295		7,680,798
	7.000%, 4/15/2029(1)		1,876,504		2,003,090
	7.000%, 5/15/2029		1,713,087		1,827,118
	7.000%, 6/15/2029		1,546,987		1,649,962
	7.000%, 8/15/2031		1,157,495		1,233,827
	7.500%, 8/15/2025		673,335		727,772
	7.500%, 8/15/2025(1)		2,156,263		2,327,695
	7.500%, 12/15/2025		1,823,832		1,968,834
	7.500%, 2/15/2027(1)		2,023,987		2,181,204
	Description		Principal Amount		Value
Mortgage Backed Securities (continued)
	Government National Mortgage Association (continued)
	8.500%, 6/15/2010	$	889,422	$	975,237
	9.000%, 11/15/2009		1,488,638		1,613,763
	9.000%, 1/15/2010		462,951		508,597
	9.500%, 10/15/2024		259,561		290,562
					56,342,227
Total Mortgage Backed Securities (identified cost $312,961,386)					322,219,236
U.S. Treasury Notes -- 22.8%
	1.500%, 2/28/2005(5)		20,000,000		20,076,580
	1.625%, 1/31/2005(5)		30,000,000		30,146,490
	2.125%, 10/31/2004(5)		25,000,000		25,180,675
	4.000%, 2/15/2014		4,000,000		4,006,252
Total U.S. Treasury Notes (identified cost $79,430,156)					79,409,997
Total Investments in Securities -- 142.3% (identified cost $483,400,677)					495,874,975
Investment for Collateral Pool for Securities on Loan -- 4.1% (See Note 2 of the Financial Statements) (identified cost $14,319,888)					14,319,888
Repurchase Agreement -- 1.7%
	Agreement with Lehman Brothers, Inc., 0.980%, dated 2/27/2004, to be repurchased at $5,901,202 on 3/1/2004, collateralized by a U.S. Treasury Bond and U.S. Government Agency Obligations with various maturities to 5/1/2030 (at amortized cost)		5,900,720		5,900,720
Total Investments -- 148.1% (identified cost $503,621,285)					516,095,583
Other Net Assets and Liabilities -- (48.1)%					(167,622,114	)
Total Net Assets -- 100.0%				$	348,473,469

February 29, 2004 (unaudited)

Portfolio of Investments

Intermediate Bond Fund

	Description		Principal Amount		Value
Asset-Backed Securities -- 3.5%
	Citibank Credit Card Issuance Trust 2002-A1, Class A1, 4.950%, 2/9/2009	$	6,000,000	$	6,415,857
	Citibank Credit Card Master Trust I 1999-7, Class A, 6.650%, 11/15/2006		5,000,000		5,195,358
	Description		Principal Amount		Value
Asset-Backed Securities (continued)
	DLJ Commercial Mortgage Corp. 1998-STF2, Class A1, 1.750%, 11/5/2008	$	286,896	$	284,385
	Green Tree Home Equity Loan Trust 1998-B, Class B1, 7.810%, 11/15/2029		7,000,000		7,235,384
	J.P. Morgan Commercial Mortgage Finance Corp. 1997-C5, Class A2, 7.069%, 9/15/2029		2,622,965		2,736,129
	Pegasus Aviation Lease Securitization 1999-1A, Class A1, 6.300%, 3/25/2029		1,845,870		1,017,966
Total Asset-Backed Securities (identified cost $22,790,478)					22,885,079
Collateralized Mortgage Obligations -- 0.8%
	Criimi Mae CMBS Corp. 1998-1, Class A3, 6.306%, 6/20/2030		4,510,075		4,571,192
	Prudential Home Mortgage Securities 1992-B, Class 2B, 6.790%, 9/28/2008		339,284		340,351
Total Collateralized Mortgage Obligations (identified cost $4,752,796)					4,911,543
Corporate Bonds & Notes -- 67.6%
	Aerospace & Related -- 0.6%
	Raytheon Co., Note, 4.850%, 1/15/2011		4,000,000		4,126,872
	Automotive & Related -- 9.7%
	DaimlerChrysler North America Holding Corp., 1.970%, 3/26/2004(4)(5)		6,000,000		6,038,802
	Ford Motor Credit Co., 7.000%, 10/1/2013		6,500,000		6,862,759
	Ford Motor Credit Co., Note, 5.625%, 10/1/2008		5,000,000		5,150,020
	Ford Motor Credit Co., Note, 6.500%, 1/25/2007		4,000,000		4,280,356
	Ford Motor Credit Co., Note, 6.700%, 7/16/2004(5)		7,000,000		7,131,152
	Ford Motor Credit Co., Note, 7.750%, 3/15/2005(5)		5,000,000		5,270,340
	Ford Motor Credit Co., Sr. Note, 6.125%, 3/20/2004(5)		8,000,000		8,018,648
	General Motors Acceptance Corp., MTN, 4.375%, 12/10/2007		5,000,000		5,077,300
	General Motors Acceptance Corp., Note, 6.750%, 1/15/2006		3,000,000		3,215,571
	General Motors Acceptance Corp., (Series MTN), 3.020%, 5/19/2004(4)(5)		6,000,000		5,996,520
	General Motors Corp., Note, 7.200%, 1/15/2011		5,000,000		5,466,905
					62,508,373
	Description		Principal Amount		Value
Corporate Bonds & Notes (continued)
	Banks -- 4.9%
	Citigroup, Inc., 5.750%, 5/10/2006	$	5,000,000	$	5,391,150
	Citigroup, Inc., Note, 3.500%, 2/1/2008		4,000,000		4,070,756
	Citicorp, Sub. Note, (Series F), 6.375%, 11/15/2008		7,000,000		7,843,689
	UBS Preferred Funding Trust, Bond, 8.622%, 10/29/2049		7,000,000		8,808,947
	Washington Mutual Bank, Inc., Note, 4.375%, 1/15/2008		5,000,000		5,219,505
					31,334,047
	Beverages & Foods -- 4.6%
	Anheuser-Busch Cos., Inc., Note, 5.000%, 3/1/2019		10,000,000		10,016,200
	General Mills, Inc., 3.875%, 11/30/2007		5,000,000		5,112,795
	Kraft Foods, Inc., Note, 5.250%, 6/1/2007		5,000,000		5,368,025
	Kroger Co., 8.050%, 2/1/2010		5,000,000		6,016,445
	Miller Brewing Co., Note, (Series 144A), 5.500%, 8/15/2013(7)(8)		3,000,000		3,163,788
					29,677,253
	Broadcasting -- 2.4%
	Clear Channel Communications, Inc., Note, 4.250%, 5/15/2009		5,000,000		5,076,930
	Liberty Media Corp., Note, 3.500%, 9/25/2006		5,000,000		5,059,145
	Univision Communications, Inc., Sr. Note, 3.500%, 10/15/2007		5,000,000		5,078,070
					15,214,145
	Broker/Dealers -- 5.4%
	Goldman Sachs Group, Inc., Bond, 6.875%, 1/15/2011		2,000,000		2,310,682
	Goldman Sachs Group, Inc., Note, (Series MTNB), 2.850%, 10/27/2006		4,000,000		4,054,548
	Lehman Brothers Holdings, Inc., 6.250%, 5/15/2006		1,000,000		1,085,037
	Lehman Brothers Holdings, Inc., Note, 3.600%, 3/13/2009		3,000,000		3,024,843
	Lehman Brothers Holdings, Inc., Note, 4.000%, 1/22/2008		5,000,000		5,167,170
	Lehman Brothers Holdings, Inc., Note, 4.800%, 3/13/2014		2,000,000		1,992,270
	Merrill Lynch & Co., Inc., 2.490%, 5/5/2006		9,000,000		9,145,260
	Description		Principal Amount		Value
Corporate Bonds & Notes (continued)
	Broker/Dealers (continued)
	Merrill Lynch & Co., Inc., Note, (Series MTNB), 4.500%, 11/4/2010	$	7,000,000	$	7,198,681
	Morgan Stanley Group, Inc., Note, 3.625%, 4/1/2008		1,000,000		1,016,290
					34,994,781
	Building -- 0.3%
	Pulte Corp., 6.250%, 2/15/2013		2,000,000		2,161,368
	Chemicals -- 1.2%
	Dow Chemical Co., Note, 5.250%, 5/14/2004(5)		3,500,000		3,521,563
	ICI Wilmington, Inc., Company Guarantee, 5.625%, 12/1/2013		4,000,000		4,145,292
					7,666,855
	Construction Equipment -- 0.4%
	CRH America, Inc., Note, 6.950%, 3/15/2012		2,000,000		2,303,222
	Consumer Cyclical -- 0.4%
	Tyco International Group, Note, 5.800%, 8/1/2006		2,500,000		2,654,837
	Domestic & International Oil -- 1.1%
	Occidental Petroleum Corp., Note, 4.000%, 11/30/2007		2,500,000		2,566,915
	Pancanadian Petroleum Ltd., Bond, 6.300%, 11/1/2011		4,000,000		4,502,188
					7,069,103
	Electrical Equipment -- 0.8%
	General Electric Co., Note, 5.000%, 2/1/2013		5,000,000		5,182,895
	Energy -- 0.6%
	Halliburton Co., Note, (Series 144A), 5.500%, 10/15/2010(7)(8)		2,000,000		2,127,476
	XTO Energy, Inc., Note, 4.900%, 2/1/2014		2,000,000		1,982,500
					4,109,976
	Financial Services -- 13.0%
	Allstate Financial Global, Note, (Series 144A), 7.125%, 9/26/2005(7)(8)		5,500,000		5,969,931
	American Express Credit Corp., (Series B), 1.164%, 3/15/2004(4)(5)		6,000,000		6,002,484
	American General Finance Corp., Note, (Series G), 4.500%, 11/15/2007		5,000,000		5,246,815
	American General Finance Corp., Note, (Series G), 5.375%, 10/1/2012		2,500,000		2,635,495
	Description		Principal Amount		Value
Corporate Bonds & Notes (continued)
	Financial Services (continued)
	Countrywide Home Loans, Global Bond, 2.875%, 2/15/2007	$	5,000,000	$	5,025,105
	Credit Suisse, London, Sub. Note, 7.900%, 5/29/2049		5,000,000		5,695,070
	General Electric Capital Corp., Note, 6.800%, 11/1/2005		4,000,000		4,325,648
	General Electric Capital Corp., Note, (Series A), 6.500%, 12/10/2007		5,000,000		5,629,145
	General Electric Capital Corp., Unsecd. Note, (Series MTNA), 4.250%, 12/1/2010		3,000,000		3,031,959
	Household Finance Corp., 6.400%, 6/17/2008		4,000,000		4,477,756
	Household Finance Corp., 7.000%, 5/15/2012		3,000,000		3,490,479
	Household Finance Corp., Note, 4.125%, 12/15/2008		2,000,000		2,048,592
	MBNA Global Capital Securities, Jr. Sub., 1.931%, 5/1/2004(4)		3,000,000		2,854,422
	National Rural Utilities Cooperative Finance Corp., Collateral Trust, 4.375%, 10/1/2010		6,000,000		6,146,982
	National Rural Utilities Cooperative Finance Corp., Note, 3.000%, 2/15/2006		7,000,000		7,130,074
	National Rural Utilities Cooperative Finance Corp., Note, 3.875%, 2/15/2008		4,000,000		4,113,016
	SLM Corp., 5.625%, 4/10/2007		5,000,000		5,444,455
	SLM Corp., Note, (Series MTNA), 1.370%, 3/15/2004(4)(5)		5,000,000		5,018,160
					84,285,588
	Household Product/Wares -- 0.8%
	Procter & Gamble Co., Unsub., 6.600%, 12/15/2004(5)		5,000,000		5,209,735
	Insurance -- 3.3%
	AIG SunAmerica Global Financial, Bond, (Series 144A), 5.850%, 8/1/2008(7)(8)		7,000,000		7,735,553
	HSB Capital I, Company Guarantee, 2.030%, 4/15/2004(4)		4,000,000		3,955,708
	John Hancock, Note, 6.500%, 3/1/2011(7)(8)		3,500,000		3,950,313
	Description		Principal Amount		Value
Corporate Bonds & Notes (continued)
	Insurance (continued)
	Prudential Funding Corp., Note, 6.600%, 5/15/2008(7)(8)	$	5,000,000	$	5,623,975
					21,265,549
	Leasing -- 0.3%
	International Lease Finance Corp., 4.500%, 5/1/2005		2,000,000		2,087,330
	Media -- 2.4%
	AOL Time Warner, Inc., Note, 6.125%, 4/15/2006		4,000,000		4,311,360
	AOL Time Warner, Inc., Note, 6.875%, 5/1/2012		3,000,000		3,404,301
	Comcast Corp., Note, 5.500%, 3/15/2011		1,000,000		1,063,170
	Comcast Corp., Note, 6.750%, 1/30/2011		3,000,000		3,405,591
	Cox Communications, Inc., Note, 3.875%, 10/1/2008		3,000,000		3,030,036
					15,214,458
	Publishing -- 0.4%
	Reed Elsevier, Inc., Company Guarantee, 6.125%, 8/1/2006		2,500,000		2,735,340
	REITS-Diversified -- 0.7%
	Vornado Realty Trust, Bond, 5.625%, 6/15/2007		4,000,000		4,330,576
	Services-Diversified Commercials -- 2.5%
	Cendant Corp., Note, 6.250%, 3/15/2010		3,500,000		3,885,385
	Hutchison Whampoa Ltd., 6.500%, 2/13/2013(7)(8)		5,000,000		5,297,160
	PHH Corp., 7.125%, 3/1/2013		6,000,000		6,851,952
					16,034,497
	Short-Term Business Credit -- 0.8%
	CIT Group, Inc., Unsecd. Note, 2.875%, 9/29/2006		5,000,000		5,050,005
	Telecommunications -- 5.3%
	British Telecommunication PLC, Note, 7.875%, 12/15/2005		5,000,000		5,503,225
	British Telecommunication PLC, Note, 8.375%, 12/15/2010		5,000,000		6,125,560
	International Telecom Satellite, Sr. Note, 5.250%, 11/1/2008		4,000,000		4,159,600
	Telecom Italia Capital, Company Guarantee, (Series 144A), 5.250%, 11/15/2013		7,000,000		7,108,997
	Telefonos de Mexico, 4.500%, 11/19/2008(7)(8)		3,000,000		3,051,000
	Description		Principal Amount		Value
Corporate Bonds & Notes (continued)
	Telecommunications (continued)
	Verizon Global Funding, Note, 7.250%, 12/1/2010	$	3,000,000	$	3,509,844
	Verizon Virginia, Inc., 4.625%, 3/15/2013		5,000,000		4,913,390
					34,371,616
	Tobacco -- 0.3%
	Altria Group, Inc., Note, 7.000%, 11/4/2013		2,000,000		2,197,952
	Transportation -- 2.5%
	American Trans Air, Pass Thru Cert., 8.039%, 1/15/2016		4,312,091		4,842,710
	Continental Airlines, Inc., Pass Thru Cert., 6.541%, 9/15/2008		2,622,390		2,502,575
	Delta Air Lines, Inc., Equip. Trust, (Series 1993-A2), 10.500%, 4/30/2016		4,000,000		3,089,460
	Systems 2001 Asset Trust, Pass Thru Cert., (Series 144A), 6.664%, 9/15/2013(7)(8)		5,322,810		5,986,644
					16,421,389
	Utilities -- 0.8%
	Duke Capital Corp., Unsecd. Note, 5.500%, 3/1/2014		5,000,000		5,020,400
	Utilities-Electric -- 1.1%
	FPL Group, Inc., Unsecd. Note, 1.470%, 3/30/2004(4)		4,000,000		4,003,048
	Pinnacle Partner, Sr. Note, 8.830%, 8/15/2004(7)(8)		3,000,000		3,116,250
					7,119,298
	Utilities-Natural Gas -- 1.0%
	TXU Capital, 2.505%, 4/1/2004(4)		7,000,000		6,171,417
Total Corporate Bonds & Notes (identified cost $418,503,792)					436,518,877
Government Agencies -- 7.3%
	Federal Home Loan Bank -- 0.9%
	Federal Home Loan Bank System, Bond, 5.430%, 11/17/2008		5,000,000		5,492,640
	Federal National Mortgage Association -- 6.4%
	5.500%, 2/15/2006		10,000,000		10,718,270
	5.500%, 12/1/2099		19,261,661		20,094,426
	7.000%, 7/15/2005		10,000,000		10,761,430
					41,574,126
Total Government Agencies (identified cost $45,590,438)					47,066,766
	Description		Principal Amount		Value
Governments/Agencies -- 0.3%
	Republic of Poland, Unsub., 5.250%, 1/15/2014 (identified cost $1,997,420)	$	2,000,000	$	2,055,000
Mortgage Backed Securities -- 9.6%
	Federal Home Loan Mortgage Corp. -- 2.0%
	5.500%, 9/1/2033		10,698,223		10,963,791
	7.500%, 2/1/2031		1,371,116		1,474,555
	7.500%, 6/1/2031		549,495		590,976
					13,029,322
	Federal National Mortgage Association -- 7.2%
	5.500%, 4/1/2034(6)		20,000,000		20,462,500
	6.000%, 4/1/2034(6)		20,000,000		20,825,000
	6.500%, 10/1/2031		2,882,358		3,033,724
	7.000%, 12/1/2015		1,940,230		2,080,320
					46,401,544
	Government National Mortgage Association -- 0.4%
	7.000%, 3/15/2032		2,657,218		2,831,602
Total Mortgage Backed Securities (identified cost $60,945,020)					62,262,468
U.S. Treasury Securities -- 10.1%
	U.S. Treasury Notes -- 10.1%
	1.625%, 3/31/2005		30,000,000		30,153,540
	1.625%, 4/30/2005		20,000,000		20,101,580
	4.000%, 2/15/2014		10,000,000		10,015,630
	4.250%, 11/15/2013		5,000,000		5,115,040
Total U.S. Treasury Securities (identified cost $65,154,688)					65,385,790
Total Investment In Securities -- 99.2% (identified cost $619,734,632)					641,085,523
Investment for Collateral Pool for Securities on Loan -- 16.8% (See Note 2 of the Financial Statements) (identified cost $108,831,508)					108,831,508
Repurchase Agreement -- 6.3%
	Agreement with Lehman Brothers, Inc., 0.98%, dated 2/27/2004, to be repurchased at $40,678,781 on 3/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 4/1/2036 (at amortized cost)		40,675,459		40,675,459
Total Investments -- 122.3% (identified cost $769,241,599)					790,592,490
Other Net Assets and Liabilities -- (22.3)%					(144,444,944	)
Total Net Assets -- 100.0%				$	646,147,546

February 29, 2004 (unaudited)

Portfolio of Investments

Intermediate Tax-Free Fund

	Description/Credit Rating(9)		Principal Amount		Value
Long-Term Municipals -- 97.3%
	Arizona -- 3.8%
	Maricopa County, AZ, School District No. 28 Kyrene Elementary, (Series A), 5.000% (MBIA Insurance Corp.)/(Original Issue Yield: 4.590%), 7/1/2013, NR/Aaa	$	1,885,000	$	2,163,226
	Maricopa County, AZ, School District No. 214 Tolleson Unified High, GO UT, 5.100% (Financial Security Assurance, Inc.)/(Original Issue Yield: 5.099%), 7/1/2010, AAA/Aaa		1,000,000		1,137,670
	Phoenix, AZ, Civic Improvement Corp., Refunding Revenue Bonds, 5.250% (FGIC)/(Original Issue Yield: 4.690%), 7/1/2016, AAA/Aaa		500,000		583,155
					3,884,051
	Arkansas -- 1.1%
	Arkansas Development Finance Authority, Revenue Bonds, 5.000% (AMBAC INS)/(Original Issue Yield: 5.055%), 7/1/2020, AAA/Aaa		1,040,000		1,078,542
	Colorado -- 5.5%
	El Paso County, CO, School District No. 49, GO UT, 5.750% (FGIC)/(Original Issue Yield: 4.750%), 12/1/2013, AAA/Aaa		1,875,000		2,246,062
	Larimer County, CO, School District No.1, Poudre, GO UT, 5.500% (FGIC)/(Original Issue Yield: 4.420%), 12/15/2006, AAA/Aaa		3,000,000		3,338,910
					5,584,972
	Connecticut -- 1.9%
	Connecticut State, (Series C), GO UT, 5.000% (Original Issue Yield: 3.280%), 12/15/2007, AA/Aa3		1,700,000		1,900,702
	Florida -- 1.1%
	Orange County, FL, Health Facilities Authority, Revenue Bonds, 5.550% (Adventist Health System)/(Original Issue Yield: 5.750%), 11/15/2004, A/A3		1,060,000		1,091,652
	Description/Credit Rating(9)		Principal Amount		Value
Long-Term Municipals (continued)
	Hawaii -- 1.1%
	Hawaii State Airport System, Refunding Revenue Bonds, 5.250% (FGIC)/(Original Issue Yield: 4.770%), 7/1/2011, AAA/Aaa	$	1,000,000	$	1,121,120
	Illinois -- 1.2%
	University of Illinois, Refunding Revenue Bonds, 5.250% (AMBAC INS)/ (Original Issue Yield: 4.530%), 4/1/2013, AAA/Aaa		1,060,000		1,224,576
	Indiana -- 3.7%
	Indianapolis-Marion County, IN, Public Library, GO UT, Prerefunded, 5.800%, (Original Issue Yield: 5.740%), 7/1/2012, AAA/Aa2		1,425,000		1,670,086
	Petersburg, IN, IPALCO, Refunding Revenue Bonds, 6.100% (MBIA Insurance Corp./(Original Issue Yield: 6.099%), 1/1/2016, AAA/Aaa		2,000,000		2,026,380
					3,696,466
	Iowa -- 3.0%
	Iowa Finance Authority, Revenue Bonds, 6.000% (Ipsco, Inc.)/(Mandatory Tender 6/1/07)/(Original Issue Yield: 6.000%), 6/1/2027, NR		3,000,000		3,017,190
	Kansas -- 1.1%
	Sedgwick County, KS, University School District, District No. 259, 6.000% (Original Issue Yield 4.640%), 9/1/2008, AA/Aa3		1,000,000		1,162,240
	Kentucky -- 3.0%
	Kentucky State Property & Buildings Commission, Prerefunded Revenue Bonds, Project No.65, 6.000% (Financial Security Assurance, Inc.)/(Original Issue Yield: 5.510%), 2/1/2011, AAA/Aaa		2,565,000		3,063,200
	Massachusetts -- 7.0%
	Commonwealth of Massachusetts, GO UT, Prerefunded, (Series A), 6.000% (Original Issue Yield: 5.670%), 2/1/2014, AAA/Aa2		2,500,000		3,007,225
	Description/Credit Rating(9)		Principal Amount		Value
Long-Term Municipals (continued)
	Massachusetts (continued)
	Commonwealth of Massachusetts, GO UT, Prerefunded, (Series E), 5.500% (Original Issue Yield: 4.100%),1/1/2014, AA-/Aa2	$	3,500,000	$	4,117,610
					7,124,835
	Michigan -- 7.9%
	Detroit, MI, City School District, School Board Loan Fund, (Series B), 5.000% (FGIC)/(Original Issue Yield: 4.500%), 5/1/2009, AAA/Aaa		3,300,000		3,734,610
	Michigan Municipal Bond Authority, Revenue Clean Water, 4.000% (Original Issue Yield: 1.670%), 10/1/2004, AAA/Aaa		2,500,000		2,543,525
	Michigan State Building Authority, (Series I), 5.500% (Original Issue Yield: 4.250%), 10/15/2009, AA+ /Aa1		1,500,000		1,741,230
					8,019,365
	Minnesota -- 3.2%
	Minneapolis/St. Paul, MN Metropolitan Airports Commission, (Series B), 5.250% (FGIC)/ (Original Issue Yield: 4.070%), 1/1/2006, AAA/Aaa		3,000,000		3,207,660
	Missouri -- 2.0%
	Missouri State Environmental Improvement & Energy Authority, (AmerenUE), (Series 1998A), (MBIA INS)/(Original Issue Yield), 09/01/2033, AAA/Aaa		2,000,000		2,000,000
	Nevada -- 2.1%
	Clark County, NV, School District, GO Ltd, (Series D), Refunding Bonds, 5.250%, (FGIC Credit Support)/ (Original Issue Yield: 4.480%), 6/15/2014, AAA/Aaa		1,880,000		2,174,822
	New Mexico -- 3.8%
	New Mexico State Highway Commission, Revenue Bonds, 6.000% (Original Issue Yield: 5.370%), 6/15/2010, AA+/Aa2		3,325,000		3,897,465
	Description/Credit Rating(9)		Principal Amount		Value
Long-Term Municipals (continued)
	New York -- 6.7%
	Oswego County, NY, GO UT , 6.700% (Original Issue Yield: 6.800%), 6/15/2010, NR/A3	$	1,100,000	$	1,345,542
	Oswego County, NY, GO UT, 6.700% (Original Issue Yield: 6.800%), 6/15/2011, NR/A3		1,100,000		1,361,195
	White Plains, NY, GO UT, (Series B), 3.00% (Original Issue Yield: 1.450%), 1/15/2005, Aa1		1,245,000		1,266,426
	White Plains, NY, GO UT, (Series B), 3.50% (Original Issue Yield: 2.310%), 1/15/2007, Aa1		1,365,000		1,439,338
	White Plains, NY, GO UT, (Series B), 3.50% (Original Issue Yield: 2.660%), 1/15/2008, Aa1		1,320,000		1,394,818
					6,807,319
	North Dakota -- 5.2%
	Fargo, ND, (Series A), 5.750% (Financial Security Assurance, Inc.)/(Original Issue Yield: 5.300%), 6/1/2012, AAA/Aaa		2,940,000		3,423,365
	North Dakota State Water Authority, Revenue Bonds, (Series A), 6.000% (MBIA INS)/(Original Issue Yield: 5.390%), 8/1/2011, AAA/Aaa		1,545,000		1,823,332
					5,246,697
	Ohio -- 0.8%
	Sidney, OH, Industrial Development, Refunding Revenue Bonds, 5.400% (Fort Wayne National Corp. LOC)/(Perfection Bakeries Inc. Project)(Original Issue Yield: 5.399%), 9/15/2005,NR		825,000		851,977
	Oregon -- 1.1%
	Salem-Keizer, OR, School District No. 24J, School Board Guarantee, GO UT, 5.375% (FGIC)/(Original Issue Yield), 6/1/2014, AAA/Aaa		1,000,000		1,155,340
	Pennsylvania -- 6.8%
	Commonwealth of Pennsylvania, 6.000% (Original Issue Yield: 5.540%), 1/15/2012, AA/Aa2		4,000,000		4,806,120
	Description/Credit Rating(9)		Principal Amount		Value
Long-Term Municipals (continued)
	Pennsylvania (continued)
	Pottsville, PA, Hospital Authority, Prerefunded, 7.000% (Original Issue Yield: 7.500%), 7/1/2014, AAA	$	2,000,000	$	2,079,680
					6,885,800
	Puerto Rico -- 1.5%
	Puerto Rico Commonwealth Highway and Transportation Authority, Revenue Bonds, 5.000% (CIFG-TCRS)/ (Original Issue Yield: 3.610%), 7/1/2009, AAA/Aaa		1,335,000		1,523,355
	South Carolina -- 4.2%
	South Carolina State, GO UT Bonds, (Series B), Prerefunded, 5.625% (Original Issue Yield: 5.604%), 7/1/2011, AAA/Aaa		1,055,000		1,181,568
	South Carolina State Public Service Authority, (Series A), 5.375% (MBIA Insurance Corp.)/(Original Issue Yield: 4.800%), 1/1/2006, AAA/Aaa		2,835,000		3,044,025
					4,225,593
	Tennessee -- 1.4%
	Putnam County, TN, GO UT, 5.250% (FGIC)/(Original Issue Yield: 4.530%), 4/1/2013,NR/Aaa		1,200,000		1,392,444
	Texas -- 4.6%
	Dallas, TX, Waterworks & Sewer System, Refunding Revenue Bonds, 5.500% (Original Issue Yield: 5.220%), 10/1/2014, AA+ /Aa2		1,000,000		1,150,140
	Tarrant County, TX, HFDC, Revenue Bonds, 5.750% (Texas Health Resources System)/(MBIA INS)/ (Original Issue Yield:5.050%), 2/15/2009, AAA/Aaa		2,000,000		2,301,400
	Texas Water Development Board, State Revolving Fund Senior Lien, Revenue Bonds (Series A), 5.250% (Original Issue Yield: 4.900%), 7/15/2004, AAA/Aaa		1,180,000		1,198,467
					4,650,007
	Description/Credit Rating(9)		Principal Amount		Value
Long-Term Municipals (continued)
	Virginia -- 4.2%
	Loudoun County, VA, GO UT, (Series B), 5.750% (Original Issue Yield: 5.000%), 1/1/2011, AA+/Aa1	$	2,190,000	$	2,579,579
	Suffolk, VA, Redevelopment & Housing Authority, Windsor at Potomac Project, Revenue Refunding Bonds, 4.850%, (Fannie Mae LIQ)/(Original Issue Yield: 4.850%), 7/1/2031, Mandatory Tender 7/01/2011 @ Par, Aaa		1,500,000		1,625,790
					4,205,369
	Washington -- 1.1%
	Port Longview, WA, Industrial Development Corp., IDC, Solid Waste Disposal Revenue Bonds, 6.875% (Weyerhaeuser Co.)/ (Original Issue Yield: 6.874%), 10/1/2008, BBB		1,000,000		1,136,140
	West Virginia -- 1.3%
	West Virginia State Hospital Finance Authority, Prerefunded, (Series B), 6.750% (Original Issue Yield: 6.950%), 9/1/2030, A2		1,000,000		1,261,820
	Wisconsin -- 5.9%
	Cedarburg, WI, School District, (Series B), Prerefunded Bonds, 5.375% (Financial Security Assurance, Inc.)/(Original Issue Yield), 3/1/2016, NR/Aaa		940,000		1,099,941
	Cedarburg, WI, School District, GO UT, (Series B), Prerefunded Bonds, 5.375% (Original Issue Yield: 4.930%), 3/1/2015, NR/Aaa		895,000		1,047,284
	Kenosha County, WI, (Series A), 5.000% (FGIC)/(Original Issue Yield: 4.500%), 3/1/2013, AAA/Aaa		1,535,000		1,680,242
	Wisconsin State, GO UT, (Series C), 6.000% (Original Issue Yield: 5.750%), 5/1/2014,AA-/Aa3		1,750,000		2,103,203
					5,930,670
Total Long-Term Municipals (identified cost $90,867,286)					98,521,389
	Description		Shares		Value
Mutual Funds -- 1.8%
	Federated Tax-Free Obligations Fund		1,090,602	$	1,090,602
	Fidelity Tax Exempt Money Market		737,141		737,141
Total Mutual Funds (shares at net asset value)					1,827,743
Total Investments -- 99.1% (identified cost $92,695,029)(10)					100,349,132
Other Net Assets and Liabilities-Net -- 0.9%					958,666
Total Net Assets -- 100.0%				$	101,307,798

February 29, 2004 (unaudited)

Portfolio of Investments

Short-Term Income Fund

	Description		Principal Amount		Value
Asset-Backed Securities -- 14.0%
	BMW Vehicle Owner Trust 2003-A, Class A3, 1.940%, 2/25/2007	$	1,250,000	$	1,257,413
	Capital Auto Receivables Asset Trust 2003-2, Class A3A, 1.440%, 2/15/2007		1,400,000		1,399,521
	Capital Auto Receivables Asset Trust 2004-1, Class A4, 2.640%, 11/17/2008		1,000,000		999,060
	CNH Equipment Trust 2003-A, Class A3B, 1.890%, 7/16/2007		1,275,000		1,277,941
	DLJ Commercial Mortgage Corp. 1998-STF2, Class A1, 1.750%, 3/5/2004(4)(7)(8)		92,955		92,141
	First Franklin Mortgage Loan Asset Backed Certificates 2002-FF1, Class 1A2, 3.790%, 4/25/2032		907,235		905,983
	Green Tree Home Equity Loan Trust 1998-B, Class B1, 7.810%, 11/15/2029		3,000,000		3,100,879
	Honda Auto Receivables Owner Trust 2001-3, Class A4, 3.960%, 2/19/2007		1,246,721		1,264,546
	Honda Auto Receivables Owner Trust 2003-1, Class A3, 1.920%, 11/20/2006		1,250,000		1,257,483
	Household Automotive Trust 2002-3, Class A3A, 2.750%, 6/18/2007		1,100,000		1,113,927
	Household Automotive Trust 2003-1, Class A3, 1.730%, 12/17/2007		1,100,000		1,099,622
	John Deere Owner Trust 2001-A, Class A3, 1.790%, 4/15/2007		1,425,000		1,424,514
	Long Beach Acceptance Auto Receivables Trust 2003-A, Class A3, 2.021%, 7/15/2007		2,000,000		2,013,600
	Description		Principal Amount		Value
Asset-Backed Securities (continued)
	Pegasus Aviation Lease Securitization 1999-1A, Class A1, 6.300%, 3/25/2029(7)(8)	$	750,654	$	413,973
	Residential Asset Mortgage Products, Inc. 2002-RS5, Class AI3, 3.717%, 7/25/2027		554,923		555,275
	Residential Asset Mortgage Products, Inc. 2002-RZ3, Class A3, 3.710%, 2/25/2029		1,300,000		1,315,292
	Residential Asset Mortgage Products, Inc. 2004-RS2, Series RS2, 3.350%, 8/25/2029		1,500,000		1,514,520
	WFS Financial Owner Trust 2004-1, Class A4, 2.810%, 8/22/2011		1,150,000		1,152,875
	Total Asset-Backed Securities (identified cost $22,324,748)				22,158,565
Collateralized Mortgage Obligations -- 13.4%
	Government National Mortgage Association -- 2.1%
	3.206%, 4/16/2018, Series 2003-72, Class A(1)		1,953,047		1,966,840
	3.312%, 4/16/2017, Series 2002-83, Class A		1,361,206		1,385,262
					3,352,102
	Other Financial -- 11.3%
	Capital Asset Research Funding 1997-A, Class 1, 6.400%, 12/15/2004(7)(8)		270,775		270,775
	Credit Suisse First Boston Mortgage Securities Corp. 2004-C1, Class A1, 2.254%, 1/15/2037		2,000,000		2,000,000
	Deutsche Mortgage Securities, Inc. 2004-2, Class A2, 3.080%, 1/25/2034		1,500,000		1,500,000
	J.P. Morgan Chase Commercial Mortgage Securities, Class A1, 3.053%, 1/15/2038		2,400,000		2,412,000
	LB-UBS Commercial Mortgage Trust 2004-C1, Series A1, 2.964%, 9/17/2008		1,587,713		1,590,936
	Morgan Stanley Capital, Inc., Class A1, 2.800%, 12/15/2041		1,745,872		1,762,505
	Wachovia Bank Commercial Mortgage Trust, Class A1, 3.065%, 2/15/2036		1,800,000		1,804,496
	Wachovia Bank Commercial Mortgage Trust, Class A1, 3.291%, 12/15/2035		2,456,680		2,489,857
	Washington Mutual 2003-AR4, Class A3, 2.875%, 5/25/2033		833,386		834,127
	Washington Mutual 2003-AR5, Class A4, 3.640%, 6/25/2033		2,200,000		2,226,334
	Description		Principal Amount		Value
Collateralized Mortgage Obligations (continued)
	Other Financial (continued)
	Washington Mutual Mortgage Securities Corp. 2001-9, Class A6, 4.816%, 10/25/2032	$	921,138	$	943,242
					17,834,272
	Total Collateralized Mortgage Obligations (identified cost $21,103,248)				21,186,374
Mortgage Backed Pass-Through Securities -- 2.4%
	Federal Home Loan Mortgage Corporation -- 0.3%
	9.000%, 7/1/2014		89,188		97,480
	11.000%, 8/1/2019		249,384		279,825
					377,305
	Federal National Mortgage Association -- 2.0%
	7.000%, 12/1/2015		523,998		561,832
	7.500%, 9/1/2015		588,698		632,829
	8.000%, 8/1/2007		5,417		5,621
	8.000%, 5/1/2008		182,228		191,988
	9.000%, 7/1/2009		116,135		126,902
	9.500%, 12/1/2024		129,406		145,025
	9.500%, 1/1/2025		309,307		346,638
	9.500%, 1/1/2025		199,650		223,720
	9.500%, 1/1/2025		128,926		144,487
	10.000%, 7/1/2020		139,443		157,534
	10.500%, 1/1/2022		167,203		190,466
	11.000%, 12/1/2015		398,281		452,265
					3,179,307
	Government National Mortgage Association -- 0.1%
	9.000%, 12/15/2019		163,238		182,535
	Total Mortgage Backed Pass-Through Securities (identified cost $3,613,535)				3,739,147
Corporate Bonds & Notes -- 54.7%
	Airline -- 0.1%
	Regional Jet Equipment Trust, Note, Series 144A, 7.771%, 9/5/2004(7)		174,472		170,728
	Automotive & Related -- 0.8%
	DaimlerChrysler North America Holding Corp., 3.400%, 12/15/2004		1,200,000		1,211,952
	Banks -- 3.4%
	Bank of America Corp., 6.125%, 7/15/2004		1,220,000		1,242,019
	Bank of New York Co., Inc., Note, 2.200%, 5/12/2006		1,100,000		1,105,564
	Description		Principal Amount		Value
Corporate Bonds & Notes (continued)
	Banks (continued)
	J.P. Morgan Chase & Co., Note, 4.000%, 2/1/2008	$	1,200,000	$	1,242,239
	Wachovia Corp., Unsecd. Note, 4.950%, 11/1/2006		1,600,000		1,705,610
					5,295,432
	Beverages & Foods -- 0.7%
	General Mills, Inc., 7.468%, 10/15/2004		1,100,000		1,135,464
	Broadcasting -- 1.0%
	Clear Channel Communications, Inc., 6.000%, 11/1/2006		1,500,000		1,624,770
	Broker/Dealers -- 4.7%
	Bear, Stearns and Co., Inc., Note, 7.330%, 10/28/2004		1,250,000		1,299,095
	Credit Suisse First Boston USA, Inc., Note, 5.875%, 8/1/2006		1,220,000		1,321,832
	Goldman Sachs Group, Inc., Note, Series MTNB, 2.850%, 10/27/2006		1,900,000		1,925,910
	Merrill Lynch & Co., Inc., 2.490%, 5/5/2006		1,500,000		1,524,210
	Morgan Stanley Group, Inc., Note, 7.750%, 6/15/2005		450,000		485,156
	Morgan Stanley Group, Inc., Unsub., 6.100%, 4/15/2006		810,000		874,392
					7,430,595
	Chemicals -- 1.0%
	Dow Chemical Co., Note, 5.250%, 5/14/2004		1,620,000		1,629,981
	Computer Services -- 1.0%
	International Business Machines Corp., Unsecd. Note, 2.375%, 11/1/2006		1,500,000		1,508,715
	Construction Equipment -- 0.8%
	Caterpillar Financial Services Corp., Note, Series MTNF, 2.350%, 9/15/2006		1,300,000		1,301,533
	Domestic & International Oil -- 0.6%
	Occidental Petroleum Corp., 6.500%, 4/1/2005		970,000		1,020,797
	Drugs -- 0.8%
	Pfizer, Inc., Note, 2.500%, 3/15/2007		1,200,000		1,206,056
	Electric -- 4.9%
	Alabama Power Co., 2.800%, 12/1/2006		1,250,000		1,261,816
	CalEnergy Co., Inc., 7.630%, 10/15/2007		1,000,000		1,140,965
	Dominion Resources, Inc., Note, 2.800%, 2/15/2005		1,350,000		1,366,192
	Description		Principal Amount		Value
Corporate Bonds & Notes (continued)
	Electric (continued)
	FPL Group, Inc., Company Guarantee, 7.625%, 9/15/2006	$	1,600,000	$	1,802,373
	TXU Gas Capital, 2.505%, 4/1/2004(4)		2,430,000		2,142,363
					7,713,709
	Energy -- 1.0%
	Anadarko Petroleum Corp., 5.375%, 3/1/2007		1,500,000		1,611,702
	Entertainment -- 2.0%
	AOL Time Warner, Inc., Note, 6.125%, 4/15/2006		1,610,000		1,735,322
	Walt Disney Co., 7.300%, 2/8/2005		1,310,000		1,378,636
					3,113,958
	Financial Services -- 3.7%
	Allstate Financial Global, Note, Series 144A, 7.125%, 9/26/2005(7)(8)		750,000		814,081
	Boeing Capital Corp., Sr. Note, 7.100%, 9/27/2005		610,000		658,959
	Cendant Corp., 6.875%, 8/15/2006		1,550,000		1,709,021
	MBNA Corp., 6.250%, 1/17/2007		1,290,000		1,414,103
	National City Bank, Indiana, Note, 2.375%, 8/15/2006		1,275,000		1,286,831
					5,882,995
	Forest Products & Paper -- 0.3%
	Reed Elsevier, Inc., Company Guarantee, 6.125%, 8/1/2006		490,000		536,127
	Health Care -- 1.0%
	Abbott Laboratories, Note, 5.125%, 7/1/2004		1,620,000		1,640,665
	Industrial Services -- 2.3%
	Dayton-Hudson Corp., Note, 7.500%, 7/15/2006		1,700,000		1,907,788
	Tyco International Group, Note, 5.800%, 8/1/2006		410,000		435,393
	WMX Technologies, Inc., Note, 8.000%, 4/30/2004		1,350,000		1,362,294
					3,705,475
	Insurance -- 0.8%
	MGIC Investment Corp., Sr. Note, 6.000%, 3/15/2007		1,100,000		1,196,254
	Leasing -- 2.1%
	General Electric Capital Corp., 5.350%, 3/30/2006		1,000,000		1,066,604
	General Electric Capital Corp., Note, 5.000%, 6/15/2007		1,000,000		1,072,334
	Description		Principal Amount		Value
Corporate Bonds & Notes (continued)
	Leasing (continued)
	General Electric Capital Corp., Note, 5.375%, 4/23/2004(1)	$	1,210,000	$	1,217,201
					3,356,139
	Media -- 2.4%
	Cox Communications, Inc., 7.750%, 8/15/2006		1,500,000		1,680,313
	Gannett Co., Inc., Note, 4.950%, 4/1/2005		955,000		989,167
	Liberty Media Corp., Note, 3.500%, 9/25/2006		1,050,000		1,062,420
					3,731,900
	Metals -- 0.4%
	Alcoa, Inc., Note, 5.875%, 6/1/2006		620,000		670,475
	Other Financial -- 3.3%
	American Express Co., 3.750%, 11/20/2007		1,000,000		1,033,400
	Core Investments, 4.727%, 11/30/2007		1,700,000		1,794,868
	HSB Capital I, Company Guarantee, 2.030%, 4/15/2004(4)		2,430,000		2,403,093
					5,231,361
	Papers -- 0.7%
	Weyerhaeuser Co., Note, 5.500%, 3/15/2005		1,010,000		1,050,385
	Personal Credit -- 5.5%
	American General Finance Corp., Note, Series G, 4.500%, 11/15/2007		1,100,000		1,154,299
	Ford Motor Credit Co., Note, 7.600%, 8/1/2005		780,000		832,198
	Ford Motor Credit Co., Note, 6.125%, 1/9/2006		1,100,000		1,158,932
	Ford Motor Credit Co., Sr. Note, 6.125%, 3/20/2004		1,620,000		1,623,776
	General Motors Acceptance Corp., 4.500%, 7/15/2006		2,600,000		2,686,749
	Household Finance Corp., Note, 8.000%, 5/9/2005		1,200,000		1,289,848
					8,745,802
	Railroad -- 0.6%
	Union Pacific Corp., Note, 5.840%, 5/25/2004		1,000,000		1,009,067
	Real Estate -- 4.2%
	Duke Realty Corp., Note, 3.350%, 1/15/2008		1,500,000		1,511,751
	ERP Operating LP, Note, 6.630%, 4/13/2015		1,400,000		1,476,479
	Kimco Realty Corp., Note, Series MTN, 7.460%, 5/29/2007		1,700,000		1,947,685
	Description		Principal Amount		Value
Corporate Bonds & Notes (continued)
	Real Estate (continued)
	Vornado Realty Trust, Bond, 5.625%, 6/15/2007	$	1,500,000	$	1,623,966
					6,559,881
	Retail -- 0.7%
	Safeway Inc., Note, 7.250%, 9/15/2004		1,030,000		1,060,375
	Short-Term Business Credit -- 0.8%
	CIT Group, Inc., Sr. Note, 4.125%, 2/21/2006		1,275,000		1,323,997
	Telecommunications -- 2.3%
	British Telecommunication PLC, Note, 7.875%, 12/15/2005		570,000		627,368
	France Telecommunications, Note, 8.700%, 3/1/2006		570,000		631,445
	Tele-Communications, Inc., Note, 8.350%, 2/15/2005		1,350,000		1,428,226
	Verizon Global Funding, Note, 6.750%, 12/1/2005(1)		810,000		877,456
					3,564,495
	Utilities -- 0.8%
	National Rural Utilities Cooperative Finance Corp., Note, 3.000%, 2/15/2006		1,200,000		1,222,298
Total Corporate Bonds & Notes (identified cost $84,721,402)					86,463,083
Government Agencies -- 13.6%
	Federal Home Loan Mortgage Corporation -- 5.9%
	Federal Home Loan Mortgage Corp., 1.000%, 3/30/2005		2,000,000		2,000,000
	Federal Home Loan Mortgage Corp., 4.875%, 3/15/2007(1)		2,000,000		2,145,764
	Federal Home Loan Mortgage Corp., Unsecd. Note, 4.250%, 6/15/2005(1)		5,000,000		5,185,375
					9,331,139
	Federal National Mortgage Association -- 7.7%
	Federal National Mortgage Association, Note, 4.250%, 7/15/2007(1)		4,500,000		4,748,702
	Federal National Mortgage Association, Note, 4.375%, 10/15/2006(1)		2,000,000		2,112,774
	Federal National Mortgage Association, Note, 5.500%, 2/15/2006(1)		5,000,000		5,359,135
					12,220,611
Total Government Agencies (identified cost $21,196,464)					21,551,750
Total Investments in Securities -- 98.1% (identified cost $152,959,397)					155,098,919
	Description		Principal Amount		Value
	Investment for Collateral Pool for Securities on Loan -- 14.8% (See Note 2 of the Financial Statements) (identified cost $23,350,709)			$	23,350,709
Repurchase Agreement -- 4.0%
	Agreement with Lehman Brothers, Inc., 0.980%, dated 2/27/2004, to be repurchased at $6,256,950 on 3/1/2004 collateralized by U.S. Government Agency Obligations with various maturities to 10/9/2013 (at amortized cost)	$	6,256,439		6,256,439
Total Investments -- 116.9% (identified cost $182,566,545)					184,706,067
Other Net Assets and Liabilities -- (16.9)%					(26,738,960	)
Total Net Assets -- 100.0%				$	157,967,107

February 29, 2004 (unaudited)

Portfolio of Investments

Money Market Fund

	Description		Principal Amount		Value
Certificates of Deposit -- 4.0%
	Banks -- 3.2%
	Toronto Dominion Bank, 1.330%, 8/23/2004	$	30,000,000	$	30,001,439
	Washington Mutual Bank FA, 1.150%, 3/10/2004 - 3/11/2004		75,000,000		75,000,000
					105,001,439
	Foreign Banks -- 0.8%
	U.S. Branch Foreign Banks Stamford, 1.245%, 3/17/2004		25,000,000		25,000,000
Total Certificates of Deposit					130,001,439
Collateralized Loan Agreements -- 9.2%
	Banking -- 6.1%
	Deutsche Bank Alex Brown, Inc., 1.123%, 2/27/2004		100,000,000		100,000,000
	Wachovia, Inc., 1.130%, 2/27/2004		100,000,000		100,000,000
					200,000,000
	Brokerage -- 3.1%
	Morgan Stanley & Co., Inc., 1.123%, 2/27/2004		100,000,000		100,000,000
Total Collateralized Loan Agreements					300,000,000
Commercial Paper -- 26.3%(11)
	Asset-Backed -- 11.0%
	Atlantis One Funding Corp., 1.110%, 3/1/2004(7)(8)		20,000,000		20,000,000
	Concord Minutemen, 1.050%, 5/17/2004(7)(8)		75,000,000		74,831,563
	Crown Point Capital Co., 1.100%, 7/7/2004(7)(8)		40,219,000		40,061,699
	Description		Principal Amount		Value
Commercial Paper (continued)
	Asset-Backed (continued)
	Scaldis Capital Ltd., 1.100%, 3/26/2004(7)(8)	$	75,000,000	$	74,942,708
	Tannehill Capital Co., 1.110% - 1.120%, 3/8/2004 - 8/23/2004(7)(8)		75,000,000		74,854,215
	World Omni Vehicle Leasing, Inc., 1.060%, 3/9/2004(7)(8)		75,000,000		74,982,333
					359,672,518
	Foreign Banks -- 6.8%
	Britannia Building Society, 1.040%, 4/15/2004		50,000,000		49,935,000
	Britannia Building Society, 1.050%, 4/15/2004		25,000,000		24,967,188
	DePfa Bank PLC, 1.030% - 1.040%, 5/12/2004 - 5/28/2004(7)(8)		75,000,000		74,819,942
	Spintab-Swedmortgage AB, 1.100% - 1.120%, 3/3/2004 - 4/8/2004		74,300,000		74,268,545
					223,990,675
	Insurance -- 3.9%
	Jefferson-Pilot Corp., 1.105%, 3/25/2004 - 3/26/2004(7)(8)		52,969,000		52,929,158
	Torchmark Corp., 1.040% - 1.050%, 3/4/2004 - 3/18/2004		74,300,000		74,273,915
					127,203,073
	Mortgage Banking -- 2.3%
	Countrywide Home Loans, Inc., (Guaranteed by Countrywide Financial Corp.), 1.050%, 3/29/2004		75,000,000		74,938,750
	Short-Term Business Credit -- 2.3%
	CIT Group, Inc., 1.100% - 1.140%, 3/17/2004 - 3/30/2004		74,976,000		74,914,019
Total Commercial Paper					860,719,035
Corporate Bonds -- 3.8%
	Automotive -- 1.2%
	BMW US Capital LLC, 4.071%, 6/7/2004(7)(8)		40,000,000		40,311,015
	Banks -- 0.4%
	Wells Fargo & Co., 6.625%, 7/15/2004		11,915,000		12,160,893
	Beverages & Foods -- 0.9%
	McDonald's Corp., 4.604%, 3/7/2004(7)(8)		30,000,000		30,015,890
	Description		Principal Amount		Value
Corporate Bonds (continued)
	Broker/Dealers -- 0.6%
	Lehman Brothers Holdings, Inc., 7.375%, 5/15/2004	$	18,750,000	$	18,980,827
	Insurance -- 0.7%
	AIG SunAmerica Global Financial, 5.200%, 5/10/2004(7)(8)		23,815,000		23,993,977
Total Corporate Bonds					125,462,602
Corporate Notes -- 2.6%
	Broker/Dealers -- 0.3%
	Lehman Brothers Holdings, Inc., 6.625%, 4/1/2004		10,170,000		10,215,862
	Telecommunications -- 2.3%
	SBC Communications, Inc., 4.180%, 6/5/2004(7)(8)		75,000,000		75,578,557
Total Corporate Notes					85,794,419
Government Agencies -- 4.0%
	Federal Home Loan Bank System -- 0.8%
	Federal Home Loan Bank System, 1.400%, 3/29/2005		25,000,000		25,000,000
	Federal Home Loan Mortgage Corporation -- 1.8%
	Federal Home Loan Mortgage Corp., 1.190%, 2/14/2005		25,000,000		25,000,000
	Federal Home Loan Mortgage Corp., 1.400%, 8/11/2004		35,000,000		35,000,000
					60,000,000
	Federal National Mortgage Association -- 1.4%
	Federal National Mortgage Association, 1.500%, 12/21/2004		25,000,000		25,000,000
	Federal National Mortgage Association, 6.500%, 8/15/2004		20,000,000		20,467,801
					45,467,801
Total Government Agencies					130,467,801
Variable-Rate Notes -- 44.0%(4)
	Banks -- 4.9%
	American Express Centurion Bank, DE, 1.074%, 3/17/2004		75,000,000		75,000,000
	First USA Bank, 1.250%, 5/14/2004		25,000,000		25,008,648
	First USA Bank, 1.270%, 5/28/2004		12,100,000		12,104,111
	SMM Trust, (Series 2003-H), 1.170%, 3/23/2004 (JP Morgan Chase)(7)(8)		35,448,889		35,448,889
	SMM Trust, (Series 2003-M), 1.170%, 3/15/2004 (JP Morgan Chase)(7)(8)		11,000,000		11,000,000
					158,561,648
	Description		Principal Amount		Value
Variable-Rate Notes (continued)
	Broker/Dealers -- 13.1%
	Bank of America Securities LLC, 1.140%, 3/1/2004(7)(8)	$	75,000,000	$	75,000,000
	Equity Mortgage Corp. (Fully Guranteed by the Bear Stearns Companies, Inc.), 1.130%, 3/4/2004(7)(8)		75,000,000		75,000,000
	Credit Suisse First Boston USA, 1.370%, 3/23/2004		25,000,000		25,016,564
	Credit Suisse First Boston USA, 1.350%, 3/25/2004		50,000,000		50,031,948
	Goldman Sachs Group, Inc., 1.270%, 3/15/2004(7)(8)		75,000,000		75,098,515
	J.P. Morgan Securities, Inc., 1.110%, 3/1/2004(7)(8)		20,000,000		20,000,000
	Merrill Lynch & Co., Inc., 1.225%, 3/11/2004		20,000,000		20,000,000
	Merrill Lynch & Co., Inc., 1.420%, 5/21/2004		39,000,000		39,029,166
	Wachovia Securities LLC, Master Note, 1.180%, 3/1/2004(7)(8)		50,000,000		50,000,000
					429,176,193
	Construction Equipment -- 2.3%
	Caterpillar Financial Services Corp., 1.250%, 4/9/2004		75,000,000		75,000,000
	Foreign Banks -- 5.3%
	BNP Paribas NY, 1.030%, 3/5/2004		75,000,000		74,995,257
	HBOS Treasury Services PLC, 1.190%, 5/20/2004(7)(8)		30,000,000		30,000,000
	Northern Rock PLC, 1.180%, 3/9/2004(7)(8)		50,000,000		50,000,000
	Royal Bank of Canada, London, 1.120%, 5/26/2004		20,000,000		20,001,438
					174,996,695
	Insurance -- 10.0%
	GE Life and Annuity Assurance Co., 1.190%, 4/20/2004(7)		75,000,000		75,000,000
	Jackson National Life Insurance Co., 1.110%, 5/1/2004(7)(8)		40,000,000		40,000,000
	Metropolitan Life Insurance Co., 1.163%, 3/1/2004(7)(8)		50,000,000		50,000,000
	Monumental Life Insurance Co., 1.220%, 4/1/2004(7)		10,000,000		10,000,000
	Description		Principal Amount or Shares		Value
Variable-Rate Notes (continued)
	Insurance (continued)
	Monumental Life Insurance Co., 1.310%, 3/1/2004(7)	$	40,000,000	$	40,000,000
	Monumental Life Insurance Co., 1.225%, 4/1/2004(7)		25,000,000		25,000,000
	Prudential Funding Corp., 1.434%, 3/15/2004(7)(8)		37,000,000		37,026,451
	Travelers Insurance Co., 1.190%, 5/1/2004(7)		50,000,000		50,000,000
					327,026,451
	Personal Credit -- 3.8%
	Associates Corp. of North America, 1.270%, 3/26/2004		50,000,000		50,000,000
	USA Education, Inc., 1.448%, 3/16/2004		73,000,000		73,067,795
					123,067,795
	Telecommunications -- 4.6%
	BellSouth Telecommunications, Inc., 1.240%, 3/4/2004		75,000,000		75,000,000
	Verizon Global Funding, 1.260%, 3/15/2004(7)(8)		75,000,000		75,000,000
					150,000,000
Total Variable-Rate Notes					1,437,828,782
Mutual Fund -- 3.1%
	Money Market Fund -- 3.1%
	American Select Cash Reserve Fund		100,000,000		100,000,000
Repurchase Agreements -- 3.5%
	Agreement with Lehman Brothers, Inc., 0.980%, dated 2/27/2004, to be repurchased at $95,007,758 on 3/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 1/15/2030	$	95,000,000		95,000,000
	Agreement with State Street Bank and Trust Co., 0.960%, dated 2/27/2004, to be repurchased at $19,489,425 on 3/1/2004, collateralized by a U.S. Government Agency Obligation maturing on 7/3/2018		19,487,866		19,487,866
Total Repurchase Agreements					114,487,866
Total Investments -- 100.5% (at amortized cost)					3,284,761,944
Other Net Assets and Liabilities -- (0.5)%					(16,952,974	)
Total Net Assets -- 100%				$	3,267,808,970

Notes to Portfolio of Investments

Note: The categories of investments are shown as a percentage of total net assets for each Fund at February 29, 2004.

(1) Certain shares or principal amounts are temporarily on loan to unaffiliated broker-dealers.

(2) Non-income producing.

(3) Represents the initial deposit within a margin account used to ensure the Fund is able to satisfy the obligations of its outstanding long futures contracts.

(4) Current rate and next demand date shown.

(5) Securities held as collateral for dollar roll transactions.

(6) All or a portion of these securities are subject to dollar roll transactions.

(7) Denotes a restricted security which is subject to restrictions on resale under federal securities laws. At February 29, 2004, these securities amounted to:

	Amount		% of Total Net Assets
Intermediate Bond Fund	$	46,022,090	7.1%
Short-Term Income Fund		1,761,698	1.1
Money Market Fund		1,480,894,912	45.3

(8) Denotes a restricted security which has been deemed liquid by criteria approved by the Fund's Board of Directors.

(9) Current credit ratings are unaudited. Please refer to the Statement of Additional Information for an explanation of the credit ratings.

(10) Securities that are subject to alternative minimum tax represent 9.3% of Intermediate Tax-Free Fund's portfolio as calculated based upon total portfolio market value.

(11) Each issue shows the rate of discount at the time of purchase.

The following acronyms are used throughout this report:
ADR	--American Depository Receipt
AMBAC	--American Municipal Bond Assurance Corporation
FGIC	--Financial Guaranty Insurance Corporation
FRN	--Floating Rate Note
GDR	--Global Depository Receipt
GO	--General Obligation
HFDC	--Health Facility Development Corporation
IDC	--Industrial Development Corporation
INS	--Insured
LIQ	--Liquidity Agreement
LOC	--Letter of Credit
MBIA	--Municipal Bond Insurance Association
MTN	--Medium Term Note
REITs	--Real Estate Investment Trusts
REMIC	--Real Estate Mortgage Investment Conduit
UT	--Unlimited Tax

Marshall	Cost of Investments for Federal Tax Purposes	Net Unrealized Appreciation for Federal Tax Purposes	Gross Unrealized Appreciation for Federal Tax Purposes	Gross Unrealized Depreciation for Federal Tax Purposes	Total Net Assets
Equity Income Fund	$ 350,718,499	$ 54,224,911	$ 58,534,216	$ 4,309,305	$ 385,045,898
Large-Cap Growth & Income Fund	233,594,674	66,600,280	67,688,897	1,088,617	288,478,949
Mid-Cap Value Fund	379,007,826	76,327,669	76,959,300	631,631	406,454,967
Mid-Cap Growth Fund	260,054,384	25,592,534	29,278,052	3,685,518	266,135,105
Small-Cap Growth Fund	157,737,597	17,529,352	19,495,630	1,966,278	149,015,946
International Stock Fund	398,392,109	63,045,023	66,595,875	3,550,852	407,456,912
Government Income Fund	503,863,757	12,231,826	12,866,455	634,629	348,473,469
Intermediate Bond Fund	770,724,438	19,868,052	23,719,784	3,851,732	646,147,546
Intermediate Tax-Free Fund	92,692,864	7,656,268	7,669,636	13,368	101,307,798
Short-Term Income Fund	183,747,653	958,414	2,150,624	1,192,210	157,967,107
Money Market Fund	3,284,761,944 *	--	--	--	3,267,808,970

* at amortized cost

February 29, 2004 (unaudited)

Statements of Assets and Liabilities

	Equity Income Fund	Large-Cap Growth & Income Fund	Mid-Cap Value Fund	Mid-Cap Growth Fund
Assets:
Investments in securities, at value	$399,745,383(1)	$297,812,232(1)	$417,085,029(1)	$265,578,650(1)
Investments in repurchase agreements	5,198,027	2,382,722	38,250,466	20,068,268
Cash	--	--	--	--
Cash denominated in foreign currencies (identified cost, $399,139)	--	--	--	--
Income receivable	1,138,235	346,375	476,593	86,778
Receivable for investments sold	4,542	--	--	--
Receivable for capital stock sold	1,769,161	4,165,862	623,492	3,700,464
Receivable for daily variation margin	--	--	75,250	--
Prepaid expenses	--	--	--	--
Total assets	407,855,348	304,707,191	456,510,830	289,434,160
Liabilities:
Payable for capital stock redeemed	59,497	207,962	182,844	44,445
Payable to bank	124,818	460	777	--
Payable for investments purchased	--	864,339	4,072,816	1,164,230
Payable on collateral due to broker	22,174,552	14,848,863	45,396,254	21,813,500
Options written, at value (premium received $87,203)	59,880	--	--	--
Payable for income distribution	--	--	--	--
Payable for dollar roll transactions	--	--	--	--
Payable for investment adviser fee (Note 5)	226,688	169,562	231,198	153,507
Payable for shareholder services fees (Note 5)	73,924	54,935	75,613	50,278
Payable for administrative fees (Note 5)	29,704	22,468	30,276	20,434
Payable for custodian fees (Note 5)	5,003	4,241	5,063	4,027
Payable for distribution services fees (Note 5)	4,710	4,768	4,297	2,606
Net payable for foreign currency exchange contracts	--	--	--	--
Accrued expenses	50,674	50,644	56,725	46,028
Total liabilities	22,809,450	16,228,242	50,055,863	23,299,055
Total Net Assets	$ 385,045,898	$ 288,478,949	$ 406,454,967	$ 266,135,105
Net Assets Consist of:
Paid-in-capital	$ 312,339,370	$ 261,070,761	$ 314,779,914	$ 304,901,161
Net unrealized appreciation on investments, options, futures contracts and foreign currency translation	54,252,234	66,600,280	76,708,169	25,592,534
Accumulated net realized gain (loss) on investments, options, futures contracts and foreign currency transactions	16,334,837	(39,488,534)	14,783,600	(63,270,788)
Undistributed net investment income (distributions in excess of net investment income)	2,119,457	296,442	183,284	(1,087,802)(2)
Total Net Assets	$ 385,045,898	$ 288,478,949	$ 406,454,967	$ 266,135,105
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Investor Class of Shares:
Net Asset Value, Offering Price and Redemption Proceeds Per Share	$ 14.34	$ 12.62	$ 14.33	$ 12.54
Advisor Class of Shares:
Net Asset Value and Redemption Proceeds Per Share	$ 14.34	$ 12.62	$ 14.33	$ 12.54
Offering Price Per Share	$ 15.21(3)	$ 13.39(3)	$ 15.20(3)	$ 13.31(3)
Institutional Class of Shares:
Net Asset Value, Offering Price and Redemption Proceeds Per Share	--	--	--	--
Net Assets:
Investor Class of Shares	$ 376,422,153	$ 280,327,867	$ 398,903,766	$ 261,649,904
Advisor Class of Shares	8,623,745	8,151,082	7,551,201	4,485,201
Institutional Class of Shares	--	--	--	--
Total Net Assets	$ 385,045,898	$ 288,478,949	$ 406,454,967	$ 266,135,105
Shares Outstanding:
Investor Class of Shares	26,244,318	22,213,572	27,827,802	20,868,562
Advisor Class of Shares	601,246	645,903	526,771	357,731
Institutional Class of Shares	--	--	--	--
Total Shares Outstanding	26,845,564	22,859,475	28,354,573	21,226,293
Investments, at identified cost	$ 350,718,499	$ 233,594,674	$ 379,007,826	$ 260,054,384

(1) Including $21,487,141, $14,481,635, $42,730,836, $20,814,760, $19,376,843, $55,661,597, $13,931,291, $106,211,606 and $22,748,986, respectively, of securities loaned.

(2) Reflects an accumulated net investment income (loss).

(3) Computation of offering price per share 100/94.25 of net asset value.

(4) Computation of offering price per share 100/95.25 of net asset value.

(5) Computation of offering price per share 100/98.00 of net asset value.

Small-Cap Growth Fund	International Stock Fund	Government Income Fund	Intermediate Bond Fund	Intermediate Tax-Free Fund	Short-Term Income Fund	Money Market Fund
$ 165,988,579(1)	$ 448,380,132(1)	$ 510,194,863(1)	$ 749,917,031(1)	$ 100,349,132	$ 178,449,628(1)	$ 3,170,274,078
9,278,370	13,057,000	5,900,720	40,675,459	--	6,256,439	114,487,866
10,290	885	21	--	--	--	--
--	389,346	--	--	--	--	--
25,338	872,997	1,464,675	6,608,216	1,057,003	1,434,549	9,952,330
1,403,135	7,701,329	--	6,493,250	--	1,221,529	--
69,596	1,750,864	161,485	3,755,710	192,849	705,074	11,257,447
10,250	--	--	--	--	--	--
--	--	--	--	--	--	132,304
176,785,558	472,152,553	517,721,764	807,449,666	101,598,984	188,067,219	3,306,104,025
79,828	222,433	152,551	170,188	--	136,795	10,813,582
--	--	--	18	25	48	14
6,959,750	5,215,876	4,747,055	9,972,800	--	6,225,227	25,000,000
20,527,220	58,444,899	14,319,888	108,831,508	--	23,350,709	--
--	--	--	--	--	--	--
--	--	559,504	957,911	248,879	308,370	1,510,425
--	--	149,194,868	40,983,643	--	--	--
110,637	314,467	192,213	275,010	26,380	32,191	315,694
26,646	51,926	7,527	10,251	1,598	2,368	446,570
11,064	31,392	29,082	47,676	7,994	12,381	111,051
2,213	16,602	4,938	7,073	1,599	2,476	28,289
2,976	2,815	3,127	3,781	--	1,536	69,430
--	402	--	--	--	--	--
49,278	394,829	37,542	42,261	4,711	28,011	--
27,769,612	64,695,641	169,248,295	161,302,120	291,186	30,100,112	38,295,055
$ 149,015,946	$ 407,456,912	$ 348,473,469	$ 646,147,546	$ 101,307,798	$ 157,967,107	$ 3,267,808,970
$ 132,366,367	$ 442,442,609	$ 340,001,133	$ 640,836,152	$ 93,651,142	$ 164,146,615	$ 3,268,296,303
17,506,427	63,045,663	12,474,298	21,350,891	7,654,103	2,139,522	--
(101,755)	(96,632,018)	(2,956,830)	(15,554,453)	2,399	(7,570,246)	(482,369)
(755,093)(2)	(1,399,342)(2)	(1,045,132)	(485,044)	154	(748,784)	(4,964)
$ 149,015,946	$ 407,456,912	$ 348,473,469	$ 646,147,546	$ 101,307,798	$ 157,967,107	$ 3,267,808,970
$ 14.35	$ 11.76	$ 9.74	$ 9.68	$ 10.79	$ 9.36	$ 1.00
$ 14.35	$ 11.76	$ 9.74	$ 9.68	--	$ 9.36	$ 1.00
$ 15.23(3)	$ 12.48(3)	$ 10.23(4)	$ 10.16(4)	--	$ 9.55(5)	--
--	$ 11.86	--	--	--	--	$ 1.00
$ 143,866,008	$ 264,271,137	$ 343,285,082	$ 639,906,596	$ 101,307,798	$ 155,396,880	$ 2,145,251,323
5,149,938	4,750,764	5,188,387	6,240,950	--	2,570,227	98,479,672
--	138,435,011	--	--	--	--	1,024,077,975
$ 149,015,946	$ 407,456,912	$ 348,473,469	$ 646,147,546	$ 101,307,798	$ 157,967,107	$ 3,267,808,970
10,024,562	22,468,350	35,261,526	66,086,364	9,388,161	16,604,200	2,145,544,797
358,847	404,026	532,933	644,527	--	274,623	98,514,580
--	11,669,392	--	--	--	--	1,024,236,926
10,383,409	34,541,768	35,794,459	66,730,891	9,388,161	16,878,823	3,268,296,303
$ 157,737,597	$ 398,392,109	$ 503,621,285	$ 769,241,599	$ 92,695,029	$ 182,566,545	$ 3,284,761,944

Six Months Ended February 29, 2004 (unaudited)

Statements of Operations

	Equity Income Fund	Large-Cap Growth & Income Fund	Mid-Cap Value Fund	Mid-Cap Growth Fund
Investment Income:
Interest income	$ 13,564(1)	$ 38,347(1)	$136,652(1)	$122,635(1)
Dividend income	5,975,719	1,943,398(3)	2,111,899	326,026(3)
Total income	5,989,283	1,981,745	2,248,551	448,661
Expenses:
Investment adviser fee (Note 5)	1,364,657	1,019,470	1,225,213	924,490
Shareholder services fees (Note 5)--
Investor Class of Shares	446,377	330,904	400,536	303,246
Advisor Class of Shares	8,508	8,919	7,868	4,917
Administrative fees (Note 5)	179,072	135,349	161,410	123,205
Portfolio accounting fees	47,864	40,637	43,602	38,554
Transfer and dividend disbursing agent fees	98,457	92,175	110,247	76,006
Custodian fees (Note 5)	30,627	26,025	28,768	24,533
Registration fees	13,171	11,885	12,896	12,491
Auditing fees	5,718	5,718	5,718	5,718
Legal fees	5,027	1,334	1,239	1,190
Printing and postage	10,641	17,617	11,124	11,723
Directors' fees	3,616	3,616	3,616	3,616
Insurance premiums	4,701	4,132	3,452	3,511
Distribution services fees (Note 5)--
Advisor Class of Shares	8,508	8,919	7,868	4,917
Miscellaneous	4,516	3,607	3,027	3,263
Total expenses	2,231,460	1,710,307	2,026,584	1,541,380
Deduct (Note 5)--
Waiver of investment adviser fee	--	--	--	--
Waiver of shareholder services fees--
Investor Class of Shares	--	--	--	--
Advisor Class of Shares	(8,508)	(8,919)	(7,868)	(4,917)
Total Waivers	(8,508)	(8,919)	(7,868)	(4,917)
Net expenses	2,222,952	1,701,388	2,018,716	1,536,463
Net investment income (loss)	3,766,331	280,357	229,835	(1,087,802)
Net Realized and Unrealized Gain (Loss) on Investments, Options, Futures Contracts and Foreign Currency:
Net realized gain on investment transactions and options (identified cost basis)	31,090,864	25,983,426	18,571,290	29,234,339
Net realized gain (loss) on futures contracts (identified cost basis)	--	(7,812)	78,815	1,123,220
Net realized loss on foreign currency contracts (identified cost basis)	--	--	--	--
Net change in unrealized appreciation/depreciation on investments, options, futures contracts and foreign currency translation	16,576,806	3,860,939	36,538,159	(9,173,649)
Net realized and unrealized gain on investments, options, futures contracts and foreign currency	47,667,670	29,836,553	55,188,264	21,183,910
Change in net assets resulting from operations	$ 51,434,001	$ 30,116,910	$ 55,418,099	$ 20,096,108

(1) Including income on securities loaned of $600, $14,376, $26,480, $32,290, $10,246, $31,920, $49,044, $71,998 and $13,045, respectively.

(2) Net of dollar roll expense of $831,522 and $254,475, respectively.

(3) Net of foreign taxes withheld of $3,063, $1,384 and $177,906, respectively.

(4) Net of foreign taxes withheld of $408,448.

Small-Cap Growth Fund	International Stock Fund	Government Income Fund	Intermediate Bond Fund	Intermediate Tax-Free Fund	Short-Term Income Fund	Money Market Fund
$ 36,761(1)	$ 50,549(1)	$ 9,483,565(1)(2)	$ 15,221,831(1)(2)	$ 2,069,252	$ 2,731,407(1)	$ 19,414,659
112,347	1,932,905(3)	--	--	--	--	--
149,108	1,983,454	9,483,565	15,221,831	2,069,252	2,731,407	19,414,659
554,769	1,814,668	1,432,435	1,920,987	305,442	457,317	2,513,432
133,183	288,193	471,400	793,145	127,268	187,588	2,567,679
5,509	5,320	6,079	7,266	--	2,961	116,773
55,477	178,609	187,658	299,643	50,907	76,220	701,859
28,732	58,280	49,754	61,397	25,192	32,410	129,749
81,324	128,230	76,429	65,948	19,284	43,652	206,197
11,095	95,014	31,531	44,448	10,182	15,244	179,994
10,068	16,788	12,640	12,599	9,595	10,306	31,647
5,724	5,719	5,718	5,718	5,718	5,718	5,719
1,172	1,232	1,632	1,633	1,633	1,220	1,192
9,314	21,897	6,345	7,821	2,843	6,199	36,522
3,619	3,616	3,616	3,616	3,616	3,616	3,616
2,362	4,399	5,202	7,602	2,680	2,716	28,883
5,509	5,320	6,079	7,266	--	2,961	140,127
1,540	4,067	5,143	8,112	1,763	2,139	15,119
909,397	2,631,352	2,301,661	3,247,201	566,123	850,267	6,678,508
--	(34,809)	(190,991)	(192,099)	(137,449)	(259,147)	(502,686)
--	--	(433,687)	(729,693)	(117,086)	(172,581)	--
(5,509)	(5,320)	(6,079)	(7,266)	--	(2,961)	--
(5,509)	(40,129)	(630,757)	(929,058)	(254,535)	(434,689)	(502,686)
903,888	2,591,223	1,670,904	2,318,143	311,588	415,578	6,175,822
(754,780)	(607,769)	7,812,661	12,903,688	1,757,664	2,315,829	13,238,837
19,398,196	37,598,489(4)	1,346,683	5,386,067	15,919	304,792	58,781
(24,350)	--	--	--	--	--	--
--	(99,180)	--	--	--	--	--
2,278,711	21,611,657	5,216,217	9,260,592	3,043,634	1,152,654	--
21,652,557	59,110,966	6,562,900	14,646,659	3,059,553	1,457,446	58,781
$ 20,897,777	$ 58,503,197	$ 14,375,561	$ 27,550,347	$ 4,817,217	$ 3,773,275	$ 13,297,618

Statements of Changes in Net Assets

	Equity Income Fund			Large-Cap Growth & Income Fund
		Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003		Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003
Increase (Decrease) in Net Assets
Operations--
Net investment income (loss)		$ 3,766,331	$ 6,729,447		$ 280,357	$ 938,913
Net realized gain (loss) on investments and options transactions		31,090,864	(7,873,644)		25,983,426	(20,885,046)
Net realized gain (loss) on futures contracts		--	(932,970)		(7,812)	--
Net realized gain (loss) on foreign currency contracts		--	--		--	--
Net change in unrealized appreciation/depreciation of investments, options, futures contracts and foreign currency translation		16,576,806	19,769,533		3,860,939	35,361,461
Change in net assets resulting from operations		51,434,001	17,692,366		30,116,910	15,415,328
Distributions to Shareholders--
Distributions to shareholders from net investment income
Investor Class of Shares		(3,223,871)	(5,421,772)		(447,801)	(467,278)
Advisor Class of Shares		(59,005)	(74,812)		(11,784)	(9,830)
Institutional Class of Shares		--	--		--	--
Distributions to shareholders from net realized gain on investments
Investor Class of Shares		--	--		--	--
Advisor Class of Shares		--	--		--	--
Institutional Class of Shares		--	--		--	--
Change in net assets resulting from distributions to shareholders		(3,282,876)	(5,496,584)		(459,585)	(477,108)
Capital Stock Transactions--
Proceeds from sale of shares		23,149,034	91,930,158		22,480,898	46,200,144
Net asset value of shares issued to shareholders in payment of distributions declared		1,652,262	2,631,432		297,142	309,467
Cost of shares redeemed		(37,138,426)	(100,397,269)		(24,591,238)	(80,737,092)
Change in net assets resulting from capital stock transactions		(12,337,130)	(5,835,679)		(1,813,198)	(34,227,481)
Change in net assets		35,813,995	6,360,103		27,844,127	(19,289,261)
Net Assets:
Beginning of period		349,231,903	342,871,800		260,634,822	279,924,083
End of period		$385,045,898	$349,231,903		$288,478,949	$260,634,822
Undistributed net investment income (accumulated net investment income (loss) included in net assets at end of period		$ 2,119,457	$ 1,636,002		$ 296,442	$ 475,670

Mid-Cap Value Fund		Mid-Cap Growth Fund			Small-Cap Growth Fund			International Stock Fund
Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003		Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003		Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003		Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003
$ 229,835	$ 286,129		$ (1,087,802)	$ (1,625,404)		$ (754,780)	$ (646,806)		$ (607,769)	$ 2,116,355
18,571,290	9,355,246		29,234,339	(18,818,630)		19,398,196	8,187,608		37,598,489	(29,827,293)
78,815	--		1,123,220	633,000		(24,350)	456,095		--	--
--	276		--	--		--	(313)		(99,180)	(446,168)
36,538,159	29,687,566		(9,173,649)	66,450,576		2,278,711	16,812,599		21,611,657	52,382,865
55,418,099	39,329,217		20,096,108	46,639,542		20,897,777	24,809,183		58,503,197	24,225,759
(214,761)	(271,998)		--	--		--	--		(901,293)	--
(4,092)	(5,338)		--	--		--	--		(15,537)	--
--	--		--	--		--	--		(742,973)	--
(10,460,779)	--		--	--		--	--		--	--
(206,381)	--		--	--		--	--		--	--
--	--		--	--		--	--		--	--
(10,886,013)	(277,336)		--	--		--	--		(1,659,803)	--
92,962,399	77,122,864		23,496,454	39,221,627		43,345,938	43,934,709		67,036,974	280,914,464
10,681,712	173,365		--	--		--	--		1,227,205	--
(14,457,977)	(43,820,738)		(18,101,682)	(50,822,527)		(9,117,353)	(55,007,523)		(42,624,102)	(282,078,408)
89,186,134	33,475,491		5,394,772	(11,600,900)		34,228,585	(11,072,814)		25,640,077	(1,163,944)
133,718,220	72,527,372		25,490,880	35,038,642		55,126,362	13,736,369		82,483,471	23,061,815
272,736,747	200,209,375		240,644,225	205,605,583		93,889,584	80,153,215		324,973,441	301,911,626
$ 406,454,967	$ 272,736,747		$ 266,135,105	$ 240,644,225		$ 149,015,946	$ 93,889,584		$ 407,456,912	$ 324,973,441
$ 183,284	$ 172,302		$ (1,087,802)	$ --		$ (755,093)	$ (313)		$ (1,399,342)	$ 868,230

Statements of Changes in Net Assets

	Government Income Fund			Intermediate Bond Fund
		Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003		Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003
Increase (Decrease) in Net Assets
Operations--
Net investment income		$ 7,812,661	$ 12,591,380		$ 12,903,688	$ 27,634,860
Net realized gain (loss) on investment and options transactions		1,346,683	5,885,147		5,386,067	8,959,894
Net realized gain (loss) on futures contracts		--	--		--	--
Net realized gain (loss) on foreign currency contracts		--	--		--	--
Net change in unrealized appreciation/depreciation of investments, options, futures contracts and foreign currency translation		5,216,217	(9,465,714)		9,260,592	(4,490,754)
Change in net assets resulting from operations		14,375,561	9,010,813		27,550,347	32,104,000
Distributions to Shareholders--
Distributions to shareholders from net investment income
Investor Class of Shares		(8,789,654)	(13,843,750)		(13,274,520)	(29,819,215)
Advisor Class of Shares		(108,278)	(148,480)		(114,935)	(215,424)
Institutional Class of Shares		--	--		--	--
Distributions to shareholders from net realized gain on investments
Investor Class of Shares		--	--		--	--
Advisor Class of Shares		--	--		--	--
Institutional Class of Shares		--	--		--	--
Change in net assets resulting from distributions to shareholders		(8,897,932)	(13,992,230)		(13,389,455)	(30,034,639)
Capital Stock Transactions--
Proceeds from sale of shares		35,080,510	144,189,704		46,903,950	223,712,681
Net asset value of shares issued to shareholders in payment of distributions declared		5,736,744	8,584,744		7,341,717	15,770,324
Cost of shares redeemed		(84,723,222)	(142,323,850)		(57,326,141)	(242,258,348)
Change in net assets resulting from capital stock transactions		(43,905,968)	10,450,598		(3,080,474)	(2,775,343)
Change in net assets		(38,428,339)	5,469,181		11,080,418	(705,982)
Net Assets:
Beginning of period		386,901,808	381,432,627		635,067,128	635,773,110
End of period		$348,473,469	$386,901,808		$646,147,546	$635,067,128
Undistributed net investment income (distributions in excess of net investment income) included in net assets at end of period		$ (1,045,132)	$ 40,139		$ (485,044)	$ 723

Intermediate Tax-Free Fund		Short-Term Income Fund			Money Market Fund
Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003		Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003		Six Months Ended February 29, 2004 (unaudited)	Year Ended August 31, 2003
$ 1,757,664	$ 3,852,223		$ 2,315,829	$ 4,600,205		$ 13,238,837	$ 35,459,931
15,919	574,723		304,792	(1,504,691)		58,781	(388,321)
--	--		--	--		--	--
--	--		--	--		--	--
3,043,634	(1,362,224)		1,152,654	687,682		--	--
4,817,217	3,064,722		3,773,275	3,783,196		13,297,618	35,071,610
(1,757,019)	(3,852,260)		(3,043,541)	(5,547,018)		(7,284,971)	(20,782,392)
--	--		(45,308)	(56,372)		(190,922)	(789,875)
--	--		--	--		(5,758,672)	(13,896,900)
(226,477)	--		--	--		--	--
--	--		--	--		--	--
--	--		--	--		--	--
(1,983,496)	(3,852,260)		(3,088,849)	(5,603,390)		(13,234,565)	(35,469,167)
7,655,133	36,802,145		20,034,758	104,977,638		7,196,637,034	9,871,475,992
389,009	385,080		1,207,799	2,270,039		3,557,503	9,474,123
(12,286,728)	(43,375,676)		(16,468,153)	(68,062,977)		(7,217,177,010)	(9,477,630,430)
(4,242,586)	(6,188,451)		4,774,404	39,184,700		(16,982,473)	403,319,685
(1,408,865)	(6,975,989)		5,458,830	37,364,506		(16,919,420)	402,922,128
102,716,663	109,692,652		152,508,277	115,143,771		3,284,728,390	2,881,806,262
$ 101,307,798	$ 102,716,663		$ 157,967,107	$ 152,508,277		$ 3,267,808,970	$ 3,284,728,390
$ 154	$ (491)		$ (748,784)	$ 24,236		$ (4,964)	$ (9,236)

Statement of Cash Flows

	Government Income Fund
	Six Months Ended February 29, 2004 (unaudited)
Increase (Decrease) in Cash
Cash Flows From Operating Activities
Change in net assets resulting from operations	$ 14,375,561
Adjustments to Reconcile Change in Net Assets Resulting from Operations to Net Cash Used in Operating Activities:
Purchase of investment securities	(998,421,072)
Paydown on investment securities	58,392,622
Realized loss on paydowns	1,095,903
Proceeds from sale of investment securities	945,230,185
Net sales of short term investment securities	954,106
Decrease in income receivable	516,110
Decrease in accrued expenses	(20,265)
Decrease in payable for investments purchased	(56,623,173)
Net realized gain on investments	(1,346,683)
Net amortization/accretion of premium/discount	8,223
Net unrealized appreciation on investments	(5,216,217)
NET CASH USED IN OPERATING ACTIVITIES	(41,054,700)
Cash Flows From Financing Activities:
Cash received from dollar roll transactions, net	93,616,885
Proceeds from sale of shares	35,138,802
Cash distributions paid	(3,002,265)
Payment of shares redeemed	(84,724,270)
NET CASH USED IN FINANCING ACTIVITIES	41,029,152
NET CHANGE IN CASH	(25,548)
Cash:
Beginning of period	25,569
End of period	$ 21

Supplemental disclosure of cash flow information. Non-cash financing not included herein consists of reinvestment of dividends and distributions of $5,736,744.

Financial Highlights--Investor Class of Shares (For a share outstanding throughout each period)

Year Ended August 31,	Net asset value, beginning of period	Net investment income (loss)	Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency	Total from investment operations	Distributions to shareholders from net investment income	Distributions to shareholders from net realized gain on investments, options, futures contracts and foreign currency	Total distributions	Net asset value, end of period	Total return(1)	Ratios to Average Net Assets				Net assets, end of period (000 omitted)	Portfolio turnover rate
											Expenses	Net investment income (loss)	Expense waiver(2)
Equity Income Fund
1999	$ 14.17	0.28	3.59	3.87	(0.29)	(1.04)	(1.33)	$ 16.71	27.92 %		1.17 %	1.73 %	--	$ 537,295	72 %
2000	$ 16.71	0.23	(0.73)	(0.50)	(0.23)	(1.36)	(1.59)	$ 14.62	(2.80)%		1.16 %	1.54 %	--	$ 423,845	98 %
2001	$ 14.62	0.16	0.16	0.32	(0.14)	(0.10)	(0.24)	$ 14.70	2.20 %		1.19 %	1.07 %	--	$ 414,651	78 %
2002(3)	$ 14.70	0.14	(1.99)	(1.85)	(0.18)	(0.55)	(0.73)	$ 12.12	(13.16)%		1.20 %	1.28 %	--	$ 338,512	50 %
2003(3)	$ 12.12	0.24	0.42	0.66	(0.20)	--	(0.20)	$ 12.58	5.56 %		1.23 %	2.04 %	--	$ 343,475	62 %
2004(3)(4)	$ 12.58	0.14	1.74	1.88	(0.12)	--	(0.12)	$ 14.34	15.04 %		1.22%(5)	2.07 %(5)	--	$ 376,422	62 %
Large-Cap Growth & Income Fund
1999	$ 13.24	0.06	5.01	5.07	(0.06)	(0.77)	(0.83)	$ 17.48	38.98 %		1.20 %	0.32 %	--	$ 407,031	32 %
2000	$ 17.48	0.03	2.72	2.75	(0.02)	(0.99)	(1.01)	$ 19.22	16.35 %		1.18 %	0.16 %	--	$ 510,195	71 %
2001	$ 19.22	0.01	(4.66)	(4.65)	(0.01)	(0.81)	(0.82)	$ 13.75	(24.79)%		1.19 %	0.03 %	--	$ 386,911	63 %
2002(3)	$ 13.75	0.01	(3.16)	(3.15)	(0.01)	--	(0.01)	$ 10.59	(22.94)%		1.21 %	0.01 %	--	$ 274,960	62 %
2003(3)	$ 10.59	0.04	0.71	0.75	(0.02)	--	(0.02)	$ 11.32	7.11 %		1.28 %	0.38 %	--	$ 254,286	73 %
2004(3)(4)	$ 11.32	0.01	1.31	1.32	(0.02)	--	(0.02)	$ 12.62	11.68 %		1.25%(5)	0.21 %(5)	--	$ 280,328	51 %
Mid-Cap Value Fund
1999	$ 10.25	0.11	2.10	2.21	(0.12)	(0.94)	(1.06)	$ 11.40	21.92 %		1.25 %	0.96 %	--	$ 128,575	90 %
2000	$ 11.40	0.09	0.79	0.88	(0.05)	(1.38)	(1.43)	$ 10.85	9.29 %		1.33 %	0.86 %	--	$ 106,569	94 %
2001	$ 10.85	0.02	2.62	2.64	(0.07)	(0.70)	(0.77)	$ 12.72	25.80 %		1.30 %	0.16 %	--	$ 172,719	104 %
2002(3)	$ 12.72	0.02	(0.40)	(0.38)	(0.01)	(1.68)	(1.69)	$ 10.65	(4.25)%		1.26 %	0.13 %	--	$ 196,254	44 %
2003(3)	$ 10.65	0.01	1.86	1.87	(0.01)	--	(0.01)	$ 12.51	17.63 %		1.27 %	0.13 %	--	$ 267,309	39 %
2004(3)(4)	$ 12.51	0.01	2.27	2.28	(0.01)	(0.45)	(0.46)	$ 14.33	18.50 %		1.24%(5)	0.14 %(5)	--	$ 398,904	21 %
Mid-Cap Growth Fund
1999	$ 11.95	(0.11)	6.26	6.15	--	(0.82)	(0.82)	$ 17.28	53.41 %		1.21 %	(0.73)%	--	$ 297,249	173 %
2000	$ 17.28	(0.16)(6)	12.00	11.84	--	(1.69)	(1.69)	$ 27.43	71.91 %		1.18 %	(0.66)%	--	$ 541,805	108 %
2001	$ 27.43	(0.06)(6)	(8.67)	(8.73)	--	(4.97)	(4.97)	$ 13.73	(34.17)%		1.19 %	(0.39)%	--	$ 333,718	118 %
2002(3)	$ 13.73	(0.09)(6)	(4.29)	(4.38)	--	(0.04)	(0.04)	$ 9.31	(32.01)%		1.24 %	(0.72)%	--	$ 203,010	167 %
2003(3)	$ 9.31	(0.08)(6)	2.34	2.26	--	--	--	$ 11.57	24.27 %		1.28 %	(0.78)%	--	$ 236,981	121 %
2004(3)(4)	$ 11.57	(0.05)	1.02	0.97	--	--	--	$ 12.54	8.38 %		1.25%(5)	(0.88)%(5)	--	$ 261,650	114 %
Small-Cap Growth Fund
1999	$ 9.82	(0.11)	2.69	2.58	--	(0.02)	(0.02)	$ 12.38	26.30 %		1.59 %	(0.90)%	--	$ 102,992	219 %
2000	$ 12.38	(0.18)(6)	7.03	6.85	--	(0.41)	(0.41)	$ 18.82	56.14 %		1.59 %	(1.03)%	--	$ 159,336	105 %
2001	$ 18.82	(0.08)(6)	(4.52)	(4.60)	--	(1.63)	(1.63)	$ 12.59	(24.23)%		1.58 %	(0.62)%	--	$ 105,397	287 %
2002(3)	$ 12.59	(0.14)(6)	(3.12)	(3.26)	--	(0.58)	(0.58)	$ 8.75	(27.23)%		1.63 %	(1.20)%	--	$ 77,713	292 %
2003(3)	$ 8.75	(0.07)(6)	3.15	3.08	--	--	--	$ 11.83	35.20 %		1.72 %	(0.82)%	--	$ 90,126	248 %
2004(3)(4)	$ 11.83	(0.09)(6)	2.61	2.52	--	--	--	$ 14.35	21.30 %		1.63%(5)	(1.36)%(5)	--	$ 143,866	119 %
International Stock Fund
1999	$ 11.54	0.09	2.45	2.54	(0.25)	--	(0.25)	$ 13.83	22.20 %		1.51 %	0.79 %	0.01 %	$ 270,315	182 %
2000	$ 13.83	(0.07)(6)	4.09	4.02	(0.16)	(1.36)	(1.52)	$ 16.33	28.09 %		1.50 %	(0.40)%	0.02 %	$ 351,242	225 %
2001	$ 16.33	0.03 (6)	(4.02)	(3.99)	--	(1.61)	(1.61)	$ 10.73	(26.36)%		1.46 %	0.25 %	0.02 %	$ 246,649	156 %
2002(3)	$ 10.73	0.03 (6)	(1.45)	(1.42)	--	--	--	$ 9.31	(13.23)%		1.49 %	0.32 %	0.02 %	$ 195,496	83 %
2003(3)	$ 9.31	0.06 (6)	0.65	0.71	--	--	--	$ 10.02	7.63 %		1.54 %	0.65 %	0.02 %	$ 204,477	171 %
2004(3)(4)	$ 10.02	(0.02)	1.80	1.78	(0.04)	--	(0.04)	$ 11.76	17.81 %		1.52%(5)	(0.42)%(5)	0.02 %(5)	$ 264,271	72 %
Government Income Fund
1999	$ 9.70	0.54	(0.48)	0.06	(0.54)	--	(0.54)	$ 9.22	0.62 %		0.86 %	5.69 %	0.33 %	$ 317,284	232 %
2000	$ 9.22	0.57	(0.02)	0.55	(0.57)	--	(0.57)	$ 9.20	6.20 %		0.85 %	6.28 %	0.33 %	$ 357,229	192 %
2001	$ 9.20	0.57	0.33	0.90	(0.57)	--	(0.57)	$ 9.53	10.02 %		0.87 %	6.04 %	0.33 %	$ 380,308	122 %
2002(3)	$ 9.53	0.49 (6)(7)	0.20 (7)	0.69	(0.50)	--	(0.50)	$ 9.72	7.50 %		0.87 %	5.16 %(7)	0.33 %	$ 377,594	76 %
2003(3)	$ 9.72	0.32 (6)	(0.08)	0.24	(0.36)	--	(0.36)	$ 9.60	2.45 %		0.87 %	3.30 %	0.33 %	$ 382,287	539 %
2004(3)(4)	$ 9.60	0.19	0.17	0.36	(0.22)	--	(0.22)	$ 9.74	3.84 %		0.87%(5)	4.09 %(5)	0.33 %(5)	$ 343,285	39 %
Intermediate Bond Fund
1999	$ 9.60	0.55	(0.43)	0.12	(0.55)	--	(0.55)	$ 9.17	1.28 %		0.71 %	5.85 %	0.28 %	$ 598,970	181 %
2000	$ 9.17	0.57	(0.01)	0.56	(0.57)	--	(0.57)	$ 9.16	6.35 %		0.70 %	6.31 %	0.29 %	$ 612,980	243 %
2001	$ 9.16	0.55	0.35	0.90	(0.55)	--	(0.55)	$ 9.51	10.14 %		0.72 %	5.93 %	0.29 %	$ 640,863	273 %
2002(3)	$ 9.51	0.47 (6)(7)	(0.04)(7)	0.43	(0.50)	--	(0.50)	$ 9.44	4.70 %		0.72 %	5.00 %(7)	0.29 %	$ 631,518	187 %
2003(3)	$ 9.44	0.41 (6)	0.07	0.48	(0.45)	--	(0.45)	$ 9.47	5.10 %		0.72 %	4.30 %	0.29 %	$ 629,664	317 %
2004(3)(4)	$ 9.47	0.19	0.22	0.41	(0.20)	--	(0.20)	$ 9.68	4.36 %		0.72%(5)	4.03 %(5)	0.29 %(5)	$ 639,907	120 %
Intermediate Tax-Free Fund
1999	$ 10.33	0.42	(0.41)	0.01	(0.42)	(0.07)	(0.49)	$ 9.85	0.02 %		0.61 %	4.11 %	0.48 %	$ 108,732	53 %
2000	$ 9.85	0.43	0.10	0.53	(0.43)	--	(0.43)	$ 9.95	5.58 %		0.60 %	4.43 %	0.49 %	$ 95,554	71 %
2001	$ 9.95	0.43	0.40	0.83	(0.43)	--	(0.43)	$ 10.35	8.52 %		0.62 %	4.24 %	0.50 %	$ 102,300	51 %
2002(3)	$ 10.35	0.40 (7)	0.22 (7)	0.62	(0.40)	--	(0.40)	$ 10.57	6.12 %		0.62 %	3.84 %(7)	0.50 %	$ 109,693	27 %
2003(3)	$ 10.57	0.38	(0.07)	0.31	(0.38)	--	(0.38)	$ 10.50	2.95 %		0.60 %	3.57 %	0.50 %	$ 102,717	17 %
2004(4)	$ 10.50	0.18	0.31	0.49	(0.18)	(0.02)	(0.20)	$ 10.79	4.76 %		0.61%(5)	3.45 %(5)	0.50 %(5)	$ 101,308	1 %
Short-Term Income Fund
1999	$ 9.61	0.55	(0.21)	0.34	(0.55)	--	(0.55)	$ 9.40	3.59 %		0.51 %	5.74 %	0.56 %	$ 134,943	163 %
2000	$ 9.40	0.60	(0.19)	0.41	(0.60)	--	(0.60)	$ 9.21	4.46 %		0.50 %	6.43 %	0.57 %	$ 122,503	72 %
2001	$ 9.21	0.58	0.33	0.91	(0.58)	--	(0.58)	$ 9.54	10.16 %		0.53 %	6.16 %	0.57 %	$ 126,008	79 %
2002(3)	$ 9.54	0.42 (6)(7)	(0.07)(7)	0.35	(0.47)	--	(0.47)	$ 9.42	3.77 %		0.56 %	4.51 %(7)	0.57 %	$ 114,320	54 %
2003(3)	$ 9.42	0.33 (6)	(0.03)	0.30	(0.40)	--	(0.40)	$ 9.32	3.22 %		0.58 %	3.47 %	0.57 %	$ 150,302	43 %
2004(3)(4)	$ 9.32	0.14	0.09	0.23	(0.19)	--	(0.19)	$ 9.36	2.47 %		0.54%(5)	3.04 %(5)	0.57 %(5)	$ 155,397	20 %
Money Market Fund
1999	$ 1.00	0.05	--	0.05	(0.05)	--	(0.05)	$ 1.00	4.98 %		0.41 %	4.86 %	0.25 %	$ 1,663,740	--
2000	$ 1.00	0.06	--	0.06	(0.06)	--	(0.06)	$ 1.00	5.88 %		0.44 %	5.73 %	0.16 %	$ 1,776,669	--
2001	$ 1.00	0.05	--	0.05	(0.05)	--	(0.05)	$ 1.00	5.32 %		0.46 %	5.22 %	0.05 %	$ 1,697,200	--
2002	$ 1.00	0.02	--	0.02	(0.02)	--	(0.02)	$ 1.00	1.99 %		0.45 %	1.95 %	0.04 %	$ 1,857,948	--
2003	$ 1.00	0.01	--	0.01	(0.01)	--	(0.01)	$ 1.00	1.05 %		0.45 %	1.04 %	0.03 %	$ 1,889,427	--
2004(4)	$ 1.00	0.00 (8)	--	0.00 (8)	(0.00)(8)	--	(0.00)(8)	$ 1.00	0.35 %		0.45%(5)	0.71 %(5)	0.03 %(5)	$ 2,145,251	--

(1) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(2) This voluntary expense decrease is reflected in both the expense and net investment income (loss) ratios shown.

(3) Effective September 1, 2001, the Funds adopted the provisions of the revised American Institute of Certified Public Accountants ("AICPA") Audit and Accounting Guide for Investment Companies which requires the disclosure of the per share effect of redemption fees. Redemption fees consisted of the following per share amounts:

	Per Share Amount
Fund	2002	2003	2004
International Stock Fund	$ 0.01	$ 0.01	$ 0.00
Intermediate Tax-Free Fund	0.01	0.01	--

Funds not shown had redemption fees of less than $0.01. Periods prior to September 1, 2001 have not been restated to reflect this change.

(4) For the six months ended February 29, 2004 (unaudited).

(5) Computed on an annualized basis.

(6) Per share information is based on average shares outstanding.

(7) Effective September 1, 2001, the Government Income Fund, Intermediate Bond Fund, Intermediate Tax-Free Fund and Short-Term Income Fund adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premium on long-term debt securities. The effect of this change for the fiscal year ended August 31, 2002 was as follows:

	Net Investment Income per Share	Net Realized/Unrealized Gain/Loss per Share	Ratio of Net Investment Income to Average Net Assets
Increase (Decrease)
Government Income Fund	$ (0.01)	$ 0.01	(0.12)%
Intermediate Bond Fund	(0.03)	0.03	(0.32)
Intermediate Tax-Free Fund	0.00	(0.00)	0.00
Short-Term Income Fund	(0.04)	0.04	(0.40)

Per share, ratios and supplemental data for periods prior September 1, 2001 have not been restated to reflect this change in presentation.

(8) Represents less than $0.01.

Period Ended August 31,	Net asset value, beginning of period	Net investment income (loss)	Net realized and unrealized gain (loss) on investments, options, futures contracts and foreign currency	Total from investment operations	Dividends to shareholders from net investment income	Distributions to shareholders from net realized gain on investments, options, futures contracts and foreign currency	Total distributions	Net asset value, end of period	Total return(1)	Ratios to Average Net Assets				Net assets, end of period (000 omitted)	Portfolio turnover rate
											Expenses	Net investment income (loss)	Expense waiver(2)
Equity Income Fund
1999(3)	$ 15.88	0.16	0.81	0.97	(0.14)	--	(0.14)	$ 16.71	6.13 %		1.17%(4)	1.68 %(4)	0.25 %(4)	$ 755	72 %
2000	$ 16.71	0.23	(0.73)	(0.50)	(0.23)	(1.36)	(1.59)	$ 14.62	(2.80)%		1.16 %	1.55 %	0.25 %	$ 2,081	98 %
2001	$ 14.62	0.16	0.16	0.32	(0.14)	(0.10)	(0.24)	$ 14.70	2.20 %		1.19 %	1.09 %	0.25 %	$ 3,628	78 %
2002(5)	$ 14.70	0.14	(1.99)	(1.85)	(0.18)	(0.55)	(0.73)	$ 12.12	(13.16)%		1.20 %	1.30 %	0.25 %	$ 4,360	50 %
2003(5)	$ 12.12	0.24	0.42	0.66	(0.20)	--	(0.20)	$ 12.58	5.56 %		1.23 %	2.03 %	0.25 %	$ 5,757	62 %
2004(5)(6)	$ 12.58	0.14	1.74	1.88	(0.12)	--	(0.12)	$ 14.34	15.04 %		1.22%(4)	2.08 %(4)	0.25 %(4)	$ 8,624	62 %
Large-Cap Growth & Income Fund
1999(3)	$ 16.34	0.02	1.14	1.16	(0.02)	--	(0.02)	$ 17.48	7.08 %		1.20%(4)	0.15 %(4)	0.25 %(4)	$ 912	32 %
2000	$ 17.48	0.03	2.72	2.75	(0.02)	(0.99)	(1.01)	$ 19.22	16.35 %		1.18 %	0.14 %	0.25 %	$ 3,615	71 %
2001	$ 19.22	0.01	(4.66)	(4.65)	(0.01)	(0.81)	(0.82)	$ 13.75	(24.79)%		1.19 %	0.05 %	0.25 %	$ 4,771	63 %
2002(5)	$ 13.75	0.01	(3.16)	(3.15)	(0.01)	--	(0.01)	$ 10.59	(22.94)%		1.21 %	0.01 %	0.25 %	$ 4,964	62 %
2003(5)	$ 10.59	0.04	0.71	0.75	(0.02)	--	(0.02)	$ 11.32	7.11 %		1.28 %	0.37 %	0.25 %	$ 6,349	73 %
2004(5)(6)	$ 11.32	0.01	1.31	1.32	(0.02)	--	(0.02)	$ 12.62	11.68 %		1.25%(4)	0.21 %(4)	0.25 %(4)	$ 8,151	51 %
Mid-Cap Value Fund
1999(3)	$ 10.77	0.05	0.62	0.67	(0.04)	--	(0.04)	$ 11.40	6.22 %		1.26%(4)	0.71 %(4)	0.25 %(4)	$ 356	90 %
2000	$ 11.40	0.09	0.79	0.88	(0.05)	(1.38)	(1.43)	$ 10.85	9.29 %		1.33 %	1.04 %	0.25 %	$ 1,054	94 %
2001	$ 10.85	0.02	2.62	2.64	(0.07)	(0.70)	(0.77)	$ 12.72	25.80 %		1.30 %	0.17 %	0.25 %	$ 2,288	104 %
2002(5)	$ 12.72	0.02	(0.40)	(0.38)	(0.01)	(1.68)	(1.69)	$ 10.65	(4.25)%		1.26 %	0.13 %	0.25 %	$ 3,956	44 %
2003(5)	$ 10.65	0.01	1.86	1.87	(0.01)	--	(0.01)	$ 12.51	17.63 %		1.27 %	0.13 %	0.25 %	$ 5,428	39 %
2004(5)(6)	$ 12.51	0.01	2.27	2.28	(0.01)	(0.45)	(0.46)	$ 14.33	18.50 %		1.24%(4)	0.14 %(4)	0.25 %(4)	$ 7,551	21 %
Mid-Cap Growth Fund
1999(3)	$ 15.13	(0.02)	2.17	2.15	--	--	--	$ 17.28	14.21 %		1.21%(4)	(0.74)%(4)	0.25 %(4)	$ 278	173 %
2000	$ 17.28	(0.16)(7)	12.00	11.84	--	(1.69)	(1.69)	$ 27.43	71.91 %		1.18 %	(0.63)%	0.25 %	$ 2,726	108 %
2001	$ 27.43	(0.06)(7)	(8.67)	(8.73)	--	(4.97)	(4.97)	$ 13.73	(34.17)%		1.19 %	(0.39)%	0.25 %	$ 3,051	118 %
2002(5)	$ 13.73	(0.09)(7)	(4.29)	(4.38)	--	(0.04)	(0.04)	$ 9.31	(32.01)%		1.24 %	(0.73)%	0.25 %	$ 2,596	167 %
2003(5)	$ 9.31	(0.08)(7)	2.34	2.26	--	--	--	$ 11.57	24.27 %		1.28 %	(0.79)%	0.25 %	$ 3,663	121 %
2004(5)(6)	$ 11.57	(0.05)	1.02	0.97	--	--	--	$ 12.54	8.38 %		1.25%(4)	(0.88)%(4)	0.25 %(4)	$ 4,485	114 %
Small-Cap Growth Fund
1999(3)	$ 12.73	(0.02)	(0.33)	(0.35)	--	--	--	$ 12.38	(2.75)%		1.59%(4)	(1.03)%(4)	0.25 %(4)	$ 394	219 %
2000	$ 12.38	(0.18)(7)	7.03	6.85	--	(0.41)	(0.41)	$ 18.82	56.14 %		1.59 %	(1.02)%	0.25 %	$ 1,771	105 %
2001	$ 18.82	(0.08)(7)	(4.52)	(4.60)	--	(1.63)	(1.63)	$ 12.59	(24.23)%		1.58 %	(0.70)%	0.25 %	$ 2,399	287 %
2002(5)	$ 12.59	(0.14)(7)	(3.12)	(3.26)	--	(0.58)	(0.58)	$ 8.75	(27.23)%		1.63 %	(1.21)%	0.25 %	$ 2,440	292 %
2003(5)	$ 8.75	(0.07)(7)	3.15	3.08	--	--	--	$ 11.83	35.20 %		1.72 %	(0.76)%	0.25 %	$ 3,763	248 %
2004(5)(6)	$ 11.83	(0.09)(7)	2.61	2.52	--	--	--	$ 14.35	21.30 %		1.63%(4)	(1.36)%(4)	0.25 %(4)	$ 5,150	119 %
International Stock Fund
1999(3)	$ 12.69	0.00 (8)	1.14	1.14	--	--	--	$ 13.83	8.98 %		1.50%(4)	0.13 %(4)	0.27 %(4)	$ 429	182 %
2000	$ 13.83	(0.05)(7)	4.08	4.03	(0.17)	(1.36)	(1.53)	$ 16.33	28.11 %		1.51 %	(0.32)%	0.27 %	$ 2,184	225 %
2001	$ 16.33	0.04 (7)	(4.03)	(3.99)	--	(1.61)	(1.61)	$ 10.73	(26.36)%		1.46 %	0.34 %	0.27 %	$ 3,555	156 %
2002(5)	$ 10.73	0.03 (7)	(1.46)	(1.43)	--	--	--	$ 9.30	(13.33)%		1.49 %	0.30 %	0.27 %	$ 4,183	83 %
2003(5)	$ 9.30	0.05 (7)	0.66	0.71	--	--	--	$ 10.01	7.63 %		1.54 %	0.59 %	0.27 %	$ 3,735	171 %
2004(5)(6)	$ 10.01	(0.02)	1.81	1.79	(0.04)	--	(0.04)	$ 11.76	17.90 %		1.52%(4)	(0.42)%(4)	0.27 %(4)	$ 4,751	72 %
Government Income Fund
1999(3)	$ 9.61	0.34	(0.39)	(0.05)	(0.34)	--	(0.34)	$ 9.22	(0.56)%		1.09%(4)	5.55 %(4)	0.36 %(4)	$ 754	232 %
2000	$ 9.22	0.55	(0.02)	0.53	(0.55)	--	(0.55)	$ 9.20	5.96 %		1.08 %	6.06 %	0.35 %	$ 1,491	192 %
2001	$ 9.20	0.55	0.33	0.88	(0.55)	--	(0.55)	$ 9.53	9.77 %		1.10 %	5.81 %	0.35 %	$ 2,451	122 %
2002(5)	$ 9.53	0.47 (7)(9)	0.20 (9)	0.67	(0.48)	--	(0.48)	$ 9.72	7.25 %		1.10 %	4.90 %(9)	0.35 %	$ 3,839	76 %
2003(5)	$ 9.72	0.30 (7)	(0.09)	0.21	(0.33)	--	(0.33)	$ 9.60	2.22 %		1.10 %	3.06 %	0.35 %	$ 4,615	539 %
2004(5)(6)	$ 9.60	0.19	0.16	0.35	(0.21)	--	(0.21)	$ 9.74	3.72 %		1.10%(4)	3.89 %(4)	0.35 %(4)	$ 5,188	39 %
Intermediate Bond Fund
1999(3)	$ 9.53	0.35	(0.36)	(0.01)	(0.35)	--	(0.35)	$ 9.17	(0.09)%		0.94%(4)	5.79 %(4)	0.31 %(4)	$ 953	181 %
2000	$ 9.17	0.55	(0.01)	0.54	(0.55)	--	(0.55)	$ 9.16	6.10 %		0.93 %	6.12 %	0.31 %	$ 1,969	243 %
2001	$ 9.16	0.53	0.35	0.88	(0.53)	--	(0.53)	$ 9.51	9.89 %		0.95 %	5.67 %	0.31 %	$ 3,230	273 %
2002(5)	$ 9.51	0.45 (7)(9)	(0.04)(9)	0.41	(0.48)	--	(0.48)	$ 9.44	4.46 %		0.95 %	4.77 %(9)	0.31 %	$ 4,255	187 %
2003(5)	$ 9.44	0.39 (7)	0.06	0.45	(0.42)	--	(0.42)	$ 9.47	4.86 %		0.95 %	4.05 %	0.31 %	$ 5,403	317 %
2004(5)(6)	$ 9.47	0.18	0.22	0.40	(0.19)	--	(0.19)	$ 9.68	4.24 %		0.95%(4)	3.82 %(4)	0.31 %(4)	$ 6,241	120 %
Short-Term Income Fund
2001(10)	$ 9.26	0.46	0.28	0.74	(0.46)	--	(0.46)	$ 9.54	8.15 %		0.76%(4)	5.68 %(4)	0.59 %(4)	$ 97	79 %
2002(5)	$ 9.54	0.39 (7)(9)	(0.06)(9)	0.33	(0.45)	--	(0.45)	$ 9.42	3.53 %		0.79 %	4.21 %(9)	0.59 %	$ 824	54 %
2003(5)	$ 9.42	0.30 (7)	(0.02)	0.28	(0.38)	--	(0.38)	$ 9.32	2.99 %		0.81 %	3.19 %	0.59 %	$ 2,207	43 %
2004(5)(6)	$ 9.32	0.13	0.09	0.22	(0.18)	--	(0.18)	$ 9.36	2.35 %		0.77%(4)	2.82 %(4)	0.59 %(4)	$ 2,570	20 %
Money Market Fund
1999	$ 1.00	0.05	--	0.05	(0.05)	--	(0.05)	$ 1.00	4.67 %		0.71 %	4.57 %	0.25 %	$ 118,352	--
2000	$ 1.00	0.05	--	0.05	(0.05)	--	(0.05)	$ 1.00	5.56 %		0.74 %	5.44 %	0.16 %	$ 140,787	--
2001	$ 1.00	0.05	--	0.05	(0.05)	--	(0.05)	$ 1.00	5.00 %		0.76 %	4.90 %	0.05 %	$ 127,707	--
2002	$ 1.00	0.02	--	0.02	(0.02)	--	(0.02)	$ 1.00	1.69 %		0.75 %	1.69 %	0.04 %	$ 113,662	--
2003	$ 1.00	0.01	--	0.01	(0.01)	--	(0.01)	$ 1.00	0.75 %		0.75 %	0.74 %	0.03 %	$ 93,059	--
2004(6)	$ 1.00	0.00 (8)	--	0.00 (8)	(0.00)(8)	--	(0.00)(8)	$ 1.00	0.20 %		0.75%(4)	0.41 %(4)	0.03 %(4)	$ 98,480	--

(1) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(2) This voluntary expense decrease is reflected in both the expense and net investment income (loss) ratios.

(3) Reflects operations for the period from December 31, 1998 (start of performance) to August 31, 1999.

(4) Computed on an annualized basis.

(5) Effective September 1, 2001, the Funds adopted the provisions of the revised American Institute of Certified Public Accountants ("AICPA") Audit and Accounting Guide for Investment Companies which requires the disclosure of the per share effect of redemption fees. Redemption fees consisted of the following per share amounts:

	Per Share Amount
Fund	2002	2003	2004
International Stock Fund	$ 0.01	$ 0.01	$ 0.00

Funds not shown had redemption fees of less than $0.01. Periods prior to September 1, 2001 have not been restated to reflect this change.

(6) For the six months ended February 29, 2004 (unaudited).

(7) Per share information is based on average shares outstanding.

(8) Represents less than $0.01.

(9) Effective September 1, 2001, the Government Income Fund, Intermediate Bond Fund and Short-Term Income Fund adopted the provisions of the revised AICPA Audit and Accounting Guide for

Investment Companies and began accreting discount/amortizing premium on long-term debt securities. The effect of this change for the fiscal year ended August 31, 2002 was as follows:

	Net Investment Income per Share	Net Realized/Unrealized Gain/Loss per Share	Ratio of Net Investment Income to Average Net Assets
Increase (Decrease)
Government Income Fund	$ (0.01)	$ 0.01	(0.12)%
Intermediate Bond Fund	(0.03)	0.03	(0.32)
Short-Term Income Fund	(0.04)	0.04	(0.40)

Per share, ratios and supplemental data for periods prior September 1, 2001 have not been restated to reflect this change in presentation.

(10) Reflects operations for the period from October 31, 2000 (start of performance) to August 31, 2001.

Notes to Financial Statements

1. Organization

Marshall Funds, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Corporation consists of twelve diversified portfolios (individually referred to as the "Fund", or collectively as the "Funds"), eleven of which are presented herein:

Portfolio Name	Investment Objective
Marshall Equity Income Fund ("Equity Income Fund")	To provide capital appreciation and above-average dividend income.
Marshall Large-Cap Growth & Income Fund ("Large-Cap Growth & Income Fund")	To provide capital appreciation and income.
Marshall Mid-Cap Value Fund ("Mid-Cap Value Fund")	To provide capital appreciation.
Marshall Mid-Cap Growth Fund ("Mid-Cap Growth Fund")	To provide capital appreciation.
Marshall Small-Cap Growth Fund ("Small-Cap Growth Fund")	To provide capital appreciation.
Marshall International Stock Fund ("International Stock Fund")	To provide capital appreciation.
Marshall Government Income Fund ("Government Income Fund")	To provide current income.
Marshall Intermediate Bond Fund ("Intermediate Bond Fund")	To maximize total return consistent with current income.
Marshall Intermediate Tax-Free Fund ("Intermediate Tax-Free Fund")	To provide a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.
Marshall Short-Term Income Fund ("Short-Term Income Fund")	To maximize total return consistent with current income.
Marshall Money Market Fund ("Money Market Fund")	To provide current income consistent with stability of principal.

The Funds (except Intermediate Tax-Free Fund) are offered in two classes of shares: Investor Class of Shares and Advisor Class of Shares. International Stock Fund and Money Market Fund offer three classes of shares: Investor Class of Shares, Advisor Class of Shares and Institutional Class of Shares. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Financial Highlights of Institutional Class of Shares of the Funds are presented in separate semi-annual reports.

2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP") in the United States of America.

Investment Valuations--Listed equity securities are valued at the last sale price reported on a national securities exchange. U.S. government securities, listed corporate bonds, other fixed income and asset-backed securities, and unlisted securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Private placement securities are valued based on independent broker quotations. Foreign equity securities are valued at the last sale price reported in the market in which they are primarily traded. If no sale on the recognized exchange is reported or the security is traded over-the-counter, the foreign securities are valued at the mean between last closing bid and asked prices. Municipal bonds are valued by an independent pricing service, taking into consideration yield, liquidity, risk, credit quality, coupon, maturity, type of issue and any other factors or market data the pricing service deems relevant. Money Market Fund's use of the amortized cost method to value portfolio securities is in accordance with Rule 2a-7 under the Act. For fluctuating net asset value Funds within the Corporation, short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities purchased with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair market value. Investments in other open-end regulated investment companies are valued at net asset value. Securities for which no quotations are readily available are valued at fair value as determined in good faith using methods approved by the Board of Directors (the "Directors").

Statement of Cash Flows--Information of financial transactions which have been settled through the receipt or disbursement of cash is presented in the Statement of Cash Flows. The cash amount shown in the Statement of Cash Flows is the amount reported as cash in the Statement of Assets and Liabilities and represents cash on hand in its custodian bank account and does not include any short-term investments at February 29, 2004.

Repurchase Agreements--It is the policy of the Funds to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Funds to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement, including accrued interest.

The Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Funds' adviser (or sub-adviser with respect to International Stock Fund) to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Directors. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Funds could receive less than the repurchase price on the sale of collateral securities.

Investment Income, Expenses and Distributions --Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair market value. The Funds offer multiple classes of shares (except Intermediate Tax-Free Fund), which differ in their respective distribution and service fees. All shareholders bear the common expenses of the Funds based on average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization/Paydown Gains and Losses --All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes. Gains and losses realized on principal payments of mortgage-backed securities (paydown gains and losses) are classified as part of investment income.

Federal Taxes --It is the Funds' policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for federal tax are necessary.

Withholding taxes on foreign dividends have been provided for in accordance with the applicable country's tax rules and rates.

When-Issued and Delayed Delivery Transactions --The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Futures Contracts --Equity Income Fund, Large-Cap Growth & Income Fund, Mid-Cap Value Fund, Mid-Cap Growth Fund and Small-Cap Growth Fund purchase stock index futures contracts to manage cashflows, enhance yield, and to potentially reduce transaction costs. Upon entering into a stock index futures contract with a broker, the Fund is required to deposit into a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a "variation margin" account. Daily, the Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with changes in the value of the underlying securities.

As of February 29, 2004, the Equity Income Fund, Large-Cap Growth & Income Fund and Mid-Cap Growth Fund had no outstanding futures contracts.

As of February 29, 2004, the Mid-Cap Value Fund had outstanding futures contracts as set forth below:

Expiration Date	Contracts to Receive	Position	Unrealized Appreciation
March 2004	215 S&P 400 Futures	Long	$380,500

As of February 29, 2004, the Small-Cap Growth Fund had outstanding futures contracts as set forth below:

Expiration Date	Contracts to Receive	Position	Unrealized Depreciation
March 2004	5 Russell 2000 Index	Long	$(22,925)

Written Options Contracts --Equity Income Fund and Large-Cap Growth & Income Fund may write option contracts. A written option obligates the Fund to deliver a call, or to receive a put, for the contract amount upon exercise by the holder of the option. The value of the option contract is recorded as a liability and unrealized gain or loss is measured by the difference between the current value and the premium received. For the six months ended February 29, 2004, the Equity Income Fund and Large-Cap Growth & Income Fund had $364,971 and $2,819, respectively, in realized gains on written options.

The following is a summary of the Equity Income Fund's written option activity:

Contracts	Number of Contracts	Premium
Outstanding @ 8/31/03	2,060	$ 157,852
Options written	6,203	306,274
Options expired	(6,382)	(368,955)
Options closed	(332)	(7,968)
Outstanding @ 2/29/04	1,549	$ 87,203

The following is a summary of the Large-Cap Growth & Income Fund's written option activity:

Contracts	Number of Contracts	Premium
Outstanding @ 8/31/03	0	$ 0
Options written	940	13,159
Options expired	0	0
Options closed	(940)	(13,159)
Outstanding @ 2/29/04	0	$ 0

At February 29, 2004, the Equity Income Fund had the following outstanding options:

Contract	Type	Expiration Date	Exercise Price	Number of Contracts	Market Value	Unrealized Appreciation (Depreciation)
Goodrich Corp.	Call	May 2004	35.00	319	6,380	$ 13,866
Reynolds R J Tobacco Hldgs Inc.	Call	May 2004	65.00	130	19,500	(2,991)
Sprint Corp.	Call	May 2004	20.00	900	22,500	8,349
FactSet Research System Inc.	Call	June 2004	45.00	200	11,500	8,099
Net Unrealized Appreciation on Written Options Contracts				1,549		$ 27,323

Foreign Exchange Contracts--International Stock Fund may enter into foreign currency exchange contracts as a way of managing foreign exchange rate risk. The International Stock Fund may enter into these contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge or cross hedge against either specific transactions or portfolio positions. The objective of the International Stock Fund's foreign currency hedging transactions is to reduce the risk that the U.S. dollar value of the International Stock Fund's foreign currency denominated securities will decline in value due to changes in foreign currency exchange rates. All foreign currency exchange contracts are "marked-to-market" daily at the applicable translation rates resulting in unrealized gains or losses. Realized gains or losses are recorded at the time the foreign currency exchange contract is offset by entering into a closing transaction or by the delivery or receipt of the currency. Risk may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. At February 29, 2004, the International Stock Fund had outstanding foreign currency exchange contracts as set forth below:

Settlement Date	Foreign Currency Units to Receive	In Exchange For	Contract at Value	Unrealized Depreciation
Contracts Bought:
3/1/2004	1,163,545 South African Rand	$ 176,161	$ 175,759	$ (402)

Foreign Currency Translation--The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies ("FC") are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Dollar Roll Transactions--The Funds, except for Money Market Fund, may enter into dollar roll transactions, with respect to mortgage securities issued by Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, in which the Funds loan mortgage securities to financial institutions and simultaneously agree to accept substantially similar (same type, coupon and maturity) securities at a later date at an agreed upon price. Dollar roll transactions are short-term financing arrangements which will not exceed twelve months. The Funds will use the proceeds generated from the transactions to invest in short-term investments, which may enhance the Funds' current yield and total return.

Information regarding dollar roll transactions for the Intermediate Bond Fund for the six months ended February 29, 2004 was as follows:

Maximum amount outstanding during the period	$ 41,244,046
Average amount outstanding during the period 1	$ 34,370,258
Average shares outstanding during the period	67,109,266
Average debt per share outstanding during the period	0.51

Information regarding dollar roll transactions for the Government Income Fund for the six months ended February 29, 2004 was as follows:

Maximum amount outstanding during the period	$ 149,949,472
Average amount outstanding during the period 1	$ 119,512,877
Average shares outstanding during the period	39,662,664
Average debt per share outstanding during the period	3.01

(1) The average amount outstanding during the period was calculated by adding the borrowings at the end of the day and dividing the sum by the number of days in the six months ended February 29, 2004.

Securities Lending--The Funds participate in a securities lending program providing for the lending of corporate bonds, equity and government securities to qualified brokers. The Funds receive cash as collateral in return for the securities and record a corresponding payable for collateral due to the respective broker. The amount of cash collateral received is maintained at a minimum level of 100% of the prior day's market value on securities loaned. Collateral is reinvested in short-term securities including overnight repurchase agreements, commercial paper, master notes, floating rate corporate notes (with at least quarterly reset rates) and money market funds.

As of February 29, 2004, the value of securities loaned, the payable on collateral due to broker and the value of reinvested cash collateral securities were as follows:

Fund	Market Value of Securities Loaned	Payable on Collateral Due to Broker	Reinvested Collateral Securities
Equity Income Fund	$ 21,487,141	$ 22,174,552	$ 22,174,552
Large-Cap Growth & Income Fund	14,481,635	14,848,863	14,848,863
Mid-Cap Value Fund	42,730,836	45,396,254	45,396,254
Mid-Cap Growth Fund	20,814,760	21,813,500	21,813,500
Small-Cap Growth Fund	19,376,843	20,527,220	20,527,220
International Stock Fund	55,661,597	58,444,899	58,444,899
Government Income Fund	13,931,291	14,319,888	14,319,888
Intermediate Bond Fund	106,211,606	108,831,508	108,831,508
Short-Term Income Fund	22,748,986	23,350,709	23,350,709

Individual reinvested cash collateral jointly pooled with collateral received from other loans of the securities lending at February 29, 2004 are as follows²:

Investments	Equity Income Fund	Large-Cap Growth & Income Fund	Mid-Cap Value Fund	Mid-Cap Growth Fund	Small-Cap Growth Fund	International Stock Fund	Government Income Fund	Intermediate Bond Fund	Short-Term Income Fund	Total
Provident Money Market Fund	$1,117,841	$ 748,546	$2,288,470	$1,099,640	$1,034,797	$ 2,946,265	$ 721,879	$ 5,486,303	$1,177,132	$16,620,873
JP Morgan Master Note	874,318	585,474	1,789,924	860,082	809,366	2,304,418	564,618	4,291,107	920,693	13,000,000
MetLife Funding Agreement	1,345,105	900,730	2,753,730	1,323,203	1,245,178	3,545,259	868,642	6,601,702	1,416,451	20,000,000
Wisconsin Public Service Master Note	672,552	450,365	1,376,865	661,602	622,589	1,772,629	434,321	3,300,852	708,225	10,000,000
Wachovia Securities LLC	672,552	450,365	1,376,865	661,602	622,589	1,772,629	434,322	3,300,851	708,225	10,000,000
Monumental Life Insurance Master Note	1,008,828	675,547	2,065,297	992,403	933,884	2,658,944	651,482	4,951,277	1,062,338	15,000,000
Merrill Lynch & Co.	1,345,105	900,730	2,753,730	1,323,203	1,245,178	3,545,259	868,642	6,601,703	1,416,450	20,000,000
Wells Fargo & Co.	672,552	450,366	1,376,865	661,602	622,589	1,772,629	434,321	3,300,851	708,225	10,000,000
Goldman Sachs Group	1,345,105	900,730	2,753,730	1,323,203	1,245,178	3,545,258	868,642	6,601,703	1,416,451	20,000,000
Allstate Life Global FB II	1,345,105	900,730	2,753,730	1,323,203	1,245,178	3,545,258	868,642	6,601,703	1,416,451	20,000,000
Jackson National Life Global	1,344,782	900,513	2,753,069	1,322,886	1,244,879	3,544,408	868,434	6,600,118	1,416,111	19,995,200
American Express Credit	1,345,105	900,730	2,753,730	1,323,203	1,245,178	3,545,259	868,643	6,601,702	1,416,450	20,000,000
Canadian IMP BK Comm	1,008,829	675,547	2,065,297	992,403	933,883	2,658,944	651,482	4,951,277	1,062,338	15,000,000
Credit Suisse FB UAS Inc.	1,010,709	676,806	2,069,148	994,253	935,624	2,663,900	652,696	4,960,506	1,064,318	15,027,960
Westpac Banking Corp.	672,553	450,365	1,376,865	661,602	622,589	1,772,629	434,321	3,300,851	708,225	10,000,000
Dorada Finance Inc.	1,347,941	902,628	2,759,535	1,325,993	1,247,803	3,552,732	870,473	6,615,619	1,419,436	20,042,160
CC USA Inc.	1,346,531	901,684	2,756,649	1,324,606	1,246,498	3,549,017	869,563	6,608,700	1,417,952	20,021,200
Prudential Financial Funding	1,345,105	900,730	2,753,729	1,323,204	1,245,178	3,545,259	868,642	6,601,703	1,416,450	20,000,000
HBOS Treasury Services PLC	1,345,105	900,730	2,753,729	1,323,204	1,245,178	3,545,259	868,642	6,601,703	1,416,450	20,000,000
General Electric Capital Corp.	1,008,829	675,547	2,065,297	992,403	933,884	2,658,944	651,481	4,951,277	1,062,338	15,000,000
Total	$22,174,552	$14,848,863	$45,396,254	$21,813,500	$20,527,220	$ 58,444,899	$ 14,319,888	$108,831,508	$23,350,709

(2) The collateral pool is managed by the Fund Manager of the Short-Term Income Fund and Money Market Fund.

Restricted Securities--Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Funds or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Directors. The Funds will not incur any registration costs upon such resales. The Short-Term Income Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, the fair value as determined in good faith using methods approved by the Directors. The Money Market Fund's restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.

Additional information on the illiquid restricted security held by the Short-Term Income Fund at February 29, 2004 is as follows:

Security	Acquisition Date	Acquisition Cost
Regional Jet Equipment Trust	2/2/2000	$ 174,472

Additional information on each illiquid restricted security held by the Money Market Fund at February 29, 2004 is as follows:

Security	Acquisition Date	Acquisition Cost
GE Life & Annuity Assurance Co.	4/22/2000	$ 75,000,000
Monumental Life Insurance Co.	8/2/1993 - 11/30/1993	40,000,000
Monumental Life Insurance Co.	10/15/1996	10,000,000
Monumental Life Insurance Co.	1/4/2000	25,000,000
Travelers Insurance Co.	1/19/2001	50,000,000

Redemption Fees--The Funds imposed a 2.00% redemption fee to shareholders of the Investor, Advisor and Institutional Class of Shares (except for Money Market Fund) who redeem shares held for 90 days or less. Redemption fees for the Institutional Class of Shares became effective on October 31, 2003. All redemption fees are recorded by the Funds as paid in capital. For the six months ended February 29, 2004, the redemption fees collected were as follows:

Fund	Amount
Equity Income Fund	$     282
Large-Cap Growth & Income Fund	10
Mid-Cap Value Fund	2,837
Mid-Cap Growth Fund	46
Small-Cap Growth Fund	2,013
International Stock Fund	51,638
Government Income Fund	191
Intermediate Bond Fund	203
Short-Term Income Fund	59

Other--Investment transactions are accounted for on a trade date basis.

3. Capital Stock

The Articles of Incorporation permit the Directors to issue an indefinite number of full and fractional shares of common stock, par value $0.0001 per share. At February 29, 2004, the capital paid-in was as follows:

Fund	Capital Paid-In
Equity Income Fund	$  312,339,370
Large-Cap Growth & Income Fund	261,070,761
Mid-Cap Value Fund	314,779,914
Mid-Cap Growth Fund	304,901,161
Small-Cap Growth Fund	132,366,367
International Stock Fund	442,442,609
Government Income Fund	340,001,133
Intermediate Bond Fund	640,836,152
Intermediate Tax-Free Fund	93,651,142
Short-Term Income Fund	164,146,615
Money Market Fund	3,268,296,303

 

Transactions in capital stock were as follows:

	Six Months Ended February 29, 2004					Year Ended August 31, 2003
	Shares			Amount		Shares			Amount
EQUITY INCOME FUND--INVESTOR CLASS
Shares sold	1,533,584		$	20,960,102		7,746,983		$	89,903,369
Shares issued to shareholders in payment of distributions declared	121,616			1,595,721		219,126			2,559,930
Shares redeemed	(2,714,349	)		(36,861,431	)	(8,589,447	)		(99,479,314	)
Net change resulting from Investor Class of Shares transactions	(1,059,149	)	$	(14,305,608	)	(623,338	)	$	(7,016,015	)
EQUITY INCOME FUND--ADVISOR CLASS
Shares sold	159,533		$	2,188,932		172,277		$	2,026,789
Shares issued to shareholders in payment of distributions declared	4,296			56,541		6,099			71,502
Shares redeemed	(20,197	)		(276,995	)	(80,459	)		(917,955	)
Net change resulting from Advisor Class of Shares transactions	143,632		$	1,968,478		97,917		$	1,180,336
Net change resulting from Fund Share transactions	(915,517	)	$	(12,337,130	)	(525,421	)	$	(5,835,679	)
LARGE-CAP GROWTH & INCOME FUND--INVESTOR CLASS
Shares sold	1,736,801		$	21,055,890		4,384,668		$	44,394,732
Shares issued to shareholders in payment of distributions declared	24,475			285,619		29,780			299,637
Shares redeemed	(2,005,816)			(24,181,345	)	(7,915,987	)		(79,889,725	)
Net change resulting from Investor Class of Shares transactions	(244,540)		$	(2,839,836	)	(3,501,539	)	$	(35,195,356	)
LARGE-CAP GROWTH & INCOME FUND--ADVISOR CLASS
Shares sold	118,317		$	1,425,008		176,146		$	1,805,412
Shares issued to shareholders in payment of distributions declared	986			11,523		987			9,830
Shares redeemed	(34,167	)		(409,893	)	(85,098	)		(847,367	)
Net change resulting from Advisor Class of Shares transactions	85,136		$	1,026,638		92,035		$	967,875
Net change resulting from Fund Share transactions	(159,404	)	$	(1,813,198	)	(3,409,504	)	$	(34,227,481	)
MID-CAP VALUE FUND--INVESTOR CLASS
Shares sold	6,728,728		$	91,649,052		7,013,316		$	75,777,785
Shares issued to shareholders in payment of distributions declared	791,037			10,480,301		16,462			168,250
Shares redeemed	(1,051,183	)		(14,207,177	)	(4,101,052	)		(43,192,693	)
Net change resulting from Investor Class of Shares transactions	6,468,582		$	87,922,176		2,928,726		$	32,753,342
MID-CAP VALUE FUND --ADVISOR CLASS
Shares sold	96,294		$	1,313,347		122,221		$	1,345,079
Shares issued to shareholders in payment of distributions declared	15,204			201,411		501			5,115
Shares redeemed	(18,474	)		(250,800	)	(60,448	)		(628,045	)
Net change resulting from Advisor Class of Shares transactions	93,024		$	1,263,958		62,274		$	722,149
Net change resulting from Fund Share transactions	6,561,606		$	89,186,134		2,991,000		$	33,475,491
MID-CAP GROWTH FUND--INVESTOR CLASS
Shares sold	1,889,317		$	22,815,982		3,918,344		$	38,396,884
Shares redeemed	(1,505,135	)		(17,921,311	)	(5,230,780	)		(50,398,270	)
Net change resulting from Investor Class of Shares transactions	384,182		$	4,894,671		(1,312,436	)	$	(12,001,386	)
MID-CAP GROWTH FUND--ADVISOR CLASS
Shares sold	56,173		$	680,472		82,158		$	824,743
Shares redeemed	(15,096	)		(180,371	)	(44,172	)		(424,257	)
Net change resulting from Advisor Class of Shares transactions	41,077		$	500,101		37,986		$	400,486
Net change resulting from Fund Share transactions	425,259		$	5,394,772		(1,274,450	)	$	(11,600,900	)
SMALL-CAP GROWTH FUND--INVESTOR CLASS
Shares sold	3,081,599		$	42,550,223		4,724,931		$	42,843,212
Shares redeemed	(674,276	)		(8,883,466	)	(5,987,291	)		(54,292,285	)
Net change resulting from Investor Class of Shares transactions	2,407,323		$	33,666,757		(1,262,360	)	$	(11,449,073	)
SMALL-CAP GROWTH FUND--ADVISOR CLASS
Shares sold	58,005		$	795,715		114,547		$	1,091,497
Shares redeemed	(17,216	)		(233,887	)	(75,298	)		(715,238	)
Net change resulting from Advisor Class of Shares transactions	40,789		$	561,828		39,249		$	376,259
Net change resulting from Fund Share transactions	2,448,112		$	34,228,585		(1,223,111	)	$	(11,072,814	)
INTERNATIONAL STOCK FUND--INVESTOR CLASS
Shares sold	3,886,312		$	44,001,085		25,538,107		$	216,541,378
Shares issued to shareholders in payment of distributions declared	45,234			507,979		--			--
Shares redeemed	(1,871,782	)		(20,472,745	)	(26,127,152	)		(223,154,491	)
Net change resulting from Investor Class of Shares transactions	2,059,764		$	24,036,319		(589,045	)	$	(6,613,113	)
INTERNATIONAL STOCK FUND--ADVISOR CLASS
Shares sold	73,378		$	801,415		2,956,437		$	25,430,025
Shares issued to shareholders in payment of distributions declared	1,344			15,095		--			--
Shares redeemed	(43,711	)		(466,218	)	(3,032,995	)		(26,284,598	)
Net change resulting from Advisor Class of Shares transactions	31,011		$	350,292		(76,558	)	$	(854,573	)
INTERNATIONAL STOCK FUND--INSTITUTIONAL CLASS
Shares sold	1,991,146		$	22,234,474		4,490,137		$	38,943,061
Shares issued to shareholders in payment of distributions declared	62,147			704,131		--			--
Shares redeemed	(1,933,291	)		(21,685,139	)	(3,849,794	)		(32,639,319	)
Net change resulting from Institutional Class of Shares transactions	120,002		$	1,253,466		640,343		$	6,303,742
Net change resulting from Fund Share transactions	2,210,777		$	25,640,077		(25,260	)	$	(1,163,944	)
GOVERNMENT INCOME FUND--INVESTOR CLASS
Shares sold	3,490,484		$	33,774,682		14,693,758		$	142,479,113
Shares issued to shareholders in payment of distributions declared	581,509			5,636,166		872,122			8,451,985
Shares redeemed	(8,636,659	)		(83,821,425	)	(14,571,939	)		(141,315,425	)
Net change resulting from Investor Class of Shares transactions	(4,564,666	)	$	(44,410,577	)	993,941		$	9,615,673
GOVERNMENT INCOME FUND--ADVISOR CLASS
Shares sold	134,699		$	1,305,828		176,522		$	1,710,591
Shares issued to shareholders in payment of distributions declared	10,376			100,578		13,698			132,759
Shares redeemed	(92,926	)		(901,797	)	(104,199	)		(1,008,425	)
Net change resulting from Advisor Class of Shares transactions	52,149		$	504,609		86,021		$	834,925
Net change resulting from Fund Share transactions	(4,512,517	)	$	(43,905,968	)	1,079,962		$	10,450,598
INTERMEDIATE BOND FUND--INVESTOR CLASS
Shares sold	4,770,838		$	45,714,882		23,324,446		$	221,778,150
Shares issued to shareholders in payment of distributions declared	752,473			7,232,836		1,629,937			15,570,078
Shares redeemed	(5,905,634	)		(56,739,264	)	(25,375,564	)		(241,265,144	)
Net change resulting from Investor Class of Shares transactions	(382,323	)	$	(3,791,546	)	(421,181	)	$	(3,916,916	)
INTERMEDIATE BOND FUND--ADVISOR CLASS
Shares sold	123,775		$	1,189,068		202,612		$	1,934,531
Shares issued to shareholders in payment of distributions declared	11,327			108,881		20,959			200,246
Shares redeemed	(61,020	)		(586,877	)	(103,824	)		(993,204	)
Net change resulting from Advisor Class of Shares transactions	74,082		$	711,072		119,747		$	1,141,573
Net change resulting from Fund Share transactions	(308,241	)	$	(3,080,474	)	(301,434	)	$	(2,775,343	)
INTERMEDIATE TAX-FREE FUND--INVESTOR CLASS
Shares sold	717,985		$	7,655,133		3,451,090		$	36,802,145
Shares issued to shareholders in payment of distributions declared	36,563			389,009		36,231			385,080
Shares redeemed	(1,152,653	)		(12,286,728	)	(4,078,468	)		(43,375,676	)
Net change resulting from Fund Share transactions	(398,105	)	$	(4,242,586	)	(591,147	)	$	(6,188,451	)
SHORT-TERM INCOME FUND--INVESTOR CLASS
Shares sold	2,099,351		$	19,609,805		10,962,354		$	103,261,378
Shares issued to shareholders in payment of distributions declared	124,918			1,167,145		235,942			2,220,226
Shares redeemed	(1,751,184	)		(16,355,752	)	(7,197,819)			(67,704,415	)
Net change resulting from Investor Class of Shares transactions	473,085		$	4,421,198		4,000,477		$	37,777,189
SHORT-TERM INCOME FUND--ADVISOR CLASS
Shares sold	45,475		$	424,953		182,090		$	1,716,260
Shares issued to shareholders in payment of distributions declared	4,351			40,654		5,296			49,813
Shares redeemed	(12,023	)		(112,401	)	(38,028	)		(358,562	)
Net change resulting from Advisor Class of Shares transactions	37,803		$	353,206		149,358		$	1,407,511
Net change resulting from Fund Share transactions	510,888		$	4,774,404		4,149,835		$	39,184,700
MONEY MARKET FUND--INVESTOR CLASS
Shares sold	3,308,384,307		$	3,308,384,307		4,925,939,267		$	4,925,939,267
Shares issued to shareholders in payment of distributions declared	1,678,880			1,678,880		5,527,537			5,527,537
Shares redeemed	(3,054,290,014	)		(3,054,290,014	)	(4,899,745,083	)		(4,899,745,083	)
Net change resulting from Investor Class of Shares transactions	255,773,173		$	255,773,173		31,721,721		$	31,721,721
MONEY MARKET FUND--ADVISOR CLASS
Shares sold	114,255,179		$	114,255,179		203,154,343		$	203,154,343
Shares issued to shareholders in payment of distributions declared	187,683			187,683		782,990			782,990
Shares redeemed	(109,024,899	)		(109,024,899	)	(224,514,776	)		(224,514,776	)
Net change resulting from Advisor Class of Shares transactions	5,417,963		$	5,417,963		(20,577,443	)	$	(20,577,443	)
MONEY MARKET FUND--INSTITUTIONAL CLASS
Shares sold	3,773,997,548		$	3,773,997,548		4,742,382,382		$	4,742,382,382
Shares issued to shareholders in payment of distributions declared	1,690,940			1,690,940		3,163,596			3,163,596
Shares redeemed	(4,053,862,097	)		(4,053,862,097	)	(4,353,370,571	)		(4,353,370,571	)
Net change resulting from Institutional Class of Shares transactions	(278,173,609	)	$	(278,173,609)		392,175,407		$	392,175,407
Net change resulting from Fund Share transactions	(16,982,473	)	$	(16,982,473)		403,319,685		$	403,319,685

4. Federal Tax Information

At August 31, 2003, the Funds had capital loss carryforwards, which will reduce the Funds' taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:

	Capital Loss Carryforward to Expire In
Fund		2004	2005	2006	2007	2008	2009	2010	2011	Total
Equity Income Fund		$ --	$ --	$ --	$ --	$ --	$ --	$ 3,405,562	$ 80,569	$ 3,486,131
Large Cap Growth & Income Fund		--	--	--	--	--	4,529,087	19,615,825	29,639,260	53,784,172
Mid-Cap Growth Fund		--	--	--	--	--	--	6,610,904	71,808,317	78,419,221
Small Cap Growth Fund		--	--	--	--	--	--	4,808,611	11,385,493	16,194,104
International Stock Fund		--	--	--	--	--	2,042,934	63,689,740	48,782,441	114,515,115
Government Income Fund		--	--	--	--	4,224,605	--	--	--	4,224,605
Intermediate Bond Fund		6,100,494	--	--	--	2,990,074	--	6,283,428	3,131,248	18,505,244
Short-Term Income Fund		556,158	545,815	618,371	952,637	222,218	928,524	944,182	322,004	5,089,909
Money Market Fund		--	--	--	--	--	--	145,822	395,328	541,150

5. Investment Adviser Fee and Other Transactions with Affiliates

Investment Adviser Fee--M&I Investment Management Corp., the Funds' investment adviser (the "Adviser"), receives for its services an annual investment adviser fee based on a percentage of each Fund's average daily net assets as listed below. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Fund	Annual Rate
Equity Income Fund	0.75 %
Large-Cap Growth & Income Fund	0.75 %
Mid-Cap Value Fund	0.75 %
Mid-Cap Growth Fund	0.75 %
Small-Cap Growth Fund	1.00 %
International Stock Fund	1.00 %
Government Income Fund	0.75 %
Intermediate Bond Fund	0.60 %
Intermediate Tax-Free Fund	0.60 %
Short-Term Income Fund	0.60 %
Money Market Fund	0.15 %

International Stock Fund's sub-adviser is BPI Global Asset Management LLP (the "Sub-Adviser"). The Adviser compensates the Sub-Adviser based on the level of average aggregate daily net assets of International Stock Fund.

Administrative Fee --M&I Trust, under the Administrative Services Agreement, provides the Funds with administrative personnel and services. The fee paid to M&I Trust is based on each Fund's average daily net assets as follows:

Maximum Fee	Fund's Average Daily Net Assets
0.100 %	on the first $250 million
0.095 %	on the next $250 million
0.080 %	on the next $250 million
0.060 %	on the next $250 million
0.040 %	on the next $500 million
0.020 %	on assets in excess of $1.5 billion

M&I Trust may voluntarily choose to waive any portion of its fee. M&I Trust can modify or terminate this voluntary waiver at any time at its sole discretion.

Federated Services Company ("FServ") is the sub-administrator and will be paid by M&I Trust, not by the Funds.

Distribution Services Fee--The Funds have adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Funds will compensate Edgewood Services, Inc. ("Edgewood"), the principal distributor, from the net assets of the Funds to finance activities intended to result in the sale of shares of each Fund's Advisor Class of Shares. The Plan provides that the Funds may incur distribution expenses up to 0.25% of the average daily net assets of each Fund's Advisor Class of Shares (except Money Market Fund's Advisor Class of Shares which may accrue up to 0.30%) annually, to compensate Edgewood. Edgewood may voluntarily choose to waive any portion of its fee. Edgewood can modify or terminate this voluntary waiver at any time at its sole discretion.

Sales Charges--For the six months ended February 29, 2004, Edgewood, the principal distributor, retained the amounts listed in the chart below for sales charges from the sale of Advisor Class of Shares.

Fund	Sales Charges from Advisor Class of Shares
Equity Income Fund	$ 11,687
Large-Cap Growth & Income Fund	8,486
Mid-Cap Value Fund	7,336
Mid-Cap Growth Fund	3,618
Small-Cap Growth Fund	4,371
International Stock Fund	3,233
Government Income Fund	5,354
Intermediate Bond Fund	7,853
Short-Term Income Fund	1,184

See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee--Under the terms of a Shareholder Services Agreement with Marshall Investor Services ("MIS"), a division of M&I Trust, each Fund will pay MIS up to 0.25% of average daily net assets of the Funds' Investor and Advisor Class of Shares for the period. The fee paid to MIS is used to finance certain services for shareholders and to maintain shareholder accounts. MIS may voluntarily choose to waive any portion of its fee. MIS can modify or terminate this voluntary waiver at any time at its sole discretion.

Custodian Fees--M&I Trust is the Funds' custodian. M&I Trust receives fees based on the level of each Fund's average daily net assets for the period. The custodian also charges a fee in connection with securities lending activities of the Funds.

General--Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees, of one or more of the above companies.

6. Investment Transactions

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations
(in-kind contributions), for the six months ended February 29, 2004 were as follows:

Fund	Purchases	Sales
Equity Income Fund	$ 222,654,623	$ 235,103,255
Large-Cap Growth & Income Fund	135,562,161	139,804,434
Mid-Cap Value Fund	120,292,898	66,268,143
Mid-Cap Growth Fund	261,211,893	269,521,610
Small-Cap Growth Fund	161,593,427	127,513,304
International Stock Fund	264,009,354	253,559,181
Intermediate Bond Fund	149,023,740	129,424,304
Intermediate Tax-Free Fund	1,112,230	5,879,050
Short-Term Income Fund	38,248,224	18,380,397

7. Line of Credit

Marshall Funds, Inc., on behalf of its respective Funds (expect for the Money Market Fund) entered into a $25,000,000 unsecured, committed revolving line of credit ("LOC") agreement with State Street Bank & Trust Company. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.50% per annum over the Federal Funds Rate. The LOC includes a commitment fee of 0.10% per annum on the daily unused portion. The Funds did not utilize the LOC during the six months ended February 29, 2004.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to the securities held in each Fund's portfolio is available, without charge and upon request, by calling 1-800-236-FUND (3863). This information is also available from the EDGAR database on the SEC's Internet site at http://www.sec.gov.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and
are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other government agency. Investment in
mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded
or accompanied by the Funds' prospectus, which contains facts concerning each
Fund's objective and policies, management fees, expenses, and other information.

[Logo of Marshall Fund]

Marshall Investor Services
P.O. Box 1348
Milwaukee,Wisconsin 53201-1348

800-236-FUND(3863)

TDD: Speech and Hearing Impaired Services
800-209-3520
www.marshallfunds.com

Edgewood Services, Inc., Distributor G00406-02 (4/04)
M&I Investment Management Corp., Investment Adviser
©2004 Marshall Funds, Inc.

321-314

Item 2.     Code of Ethics

            Not Applicable

Item 3.     Audit Committee Financial Expert

            Not Applicable

Item 4.     Principal Accountant Fees and Services

            Not Applicable

Item 5      Audit Committee of Listed Registrants

            Not Applicable

Item 6      Schedule of Investments

            Not Applicable

Item 7.     Disclosure of Proxy Voting Policies and Procedures for
            Closed-End Management Investment Companies

            Not Applicable

Item 8.     Purchases of Equity Securities by Closed-End Management
            Investment Company and Affiliated Purchasers

            Not Applicable

Item 9.     Submission of Matters to a Vote of Security Holders

The registrant does not currently have procedures by which shareholders
may recommend nominees to the registrant's board of directors.  All of the
registrant's independent directors serve on the registrant's nominating
committee.
(a)(1) Any code of ethics or amendment thereto.
            Not Applicable
(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940.
            Filed herewith
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940.
            Filed herewith

Item 10.    Controls and Procedures

(a) The registrant's President and Treasurer have concluded that the
registrant's disclosure controls and procedures (as defined in rule
30a-3(c) under the Act) are effective in design and operation and are
sufficient to form the basis of the certifications required by Rule
30a-(2) under the Act, based on their evaluation of these disclosure
controls and procedures within 90 days of the filing date of this report
on Form N-CSR.

(b) There were no changes in the registrant's internal control over
financial reporting (as defined in rule 30a-3(d) under the Act), or the
internal control over financial reporting of its service providers during
the last fiscal half year (the registrant's second half year in the case
of an annual report) that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.

Item 11.    Exhibits













SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.

Registrant  Marshall Funds, Inc.

By          /S/ Joseph P. Bree, Principal Financial Officer

Date        April 24, 2004


Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by
the following persons on behalf of the registrant and in the capacities
and on the dates indicated.


By          /S/ John M. Blaser, Principal Executive Officer


Date        April 23, 2004


By          /S/ Joseph P. Bree, Principal Financial Officer


Date        April 24, 2004