SEMI-ANNUAL REPORT
(logo)
VAN WAGONER
FUNDS
JUNE 30, 1998
This report is submitted for the general information of shareholders of Van
Wagoner Funds. It is not authorized for distribution to prospective investors
unless accompanied or preceded by an effective prospectus for the Funds. The
prospectus gives details about charges, investment objectives, risks and
operating policies of the Funds. Read the prospectus carefully.
VAN WAGONER FUNDS
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June 30, 1998
DEAR FELLOW INVESTORS:
Over the last 18 months, one market trend has affected our results more than any
other - and continues to do so midway through 1998. I'd like to review that
trend as well as more specific themes in the Van Wagoner Funds' performance.
As I've written before, both individual and institutional investors are putting
their money into bigger, more liquid companies instead of smaller, lesser-known
companies. In part, it's a reaction to uncertainty about the economy. Some
investors fear inflation; others believe the rising stock market is due for a
downturn. So, to play it safe, these investors favor larger companies.
That leads to the second part of this self-perpetuating cycle. Money flowing
into select larger companies causes a rise in the indices - attracting even more
money. And money moving away from small-cap growth stocks slows their
performance.
What's interesting is that much of the rally in the major indices is being
fueled by only a few large companies. For example, Prudential Securities found
Microsoft's performance this year accounted for 25% of the Nasdaq Composite
Index gains.<F1> In fact, Birinyi Associates found five stocks alone accounted
for about two-thirds of the Nasdaq Composite's run from 1,000 to 2,000:
Microsoft, Cisco Systems, Intel, Dell Computer and Worldcom.<F2>, <F3>
Meanwhile, even though they're presently out of the spotlight, small-cap
companies remain fundamentally strong. In fact, during the first half of this
year we saw some astonishing results: 97% of the companies we held met or
exceeded their earnings estimates in the first quarter - and it looks like an
even higher percentage will do so in the second quarter. That's a great
illustration of the excellent work our analysts are doing in researching our
holdings and the strength of our portfolio companies.
Of course, the sentiment favoring larger companies isn't the only factor driving
our performance. Attractive valuations and growth prospects of our energy
stocks led us to hold our position into the second quarter even though our
energy sector holdings pulled down results in the first quarter. Unfortunately,
we held too long. As the depth of Asia's economic crisis became clearer,
incremental demand for oil dropped - and so did energy stock prices. While we
believe this cycle has reached its lowest point, it is unclear when energy
stocks will rebound so we've reduced our exposure to this area.
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So what does an emerging growth investor do in today's environment? We're
sticking to our investment discipline and remain dedicated to growth-oriented
companies. But we're not simply waiting for the markets to change to enhance
performance. We are:
* increasing the number of companies in our portfolios, for greater trading
flexibility and to reduce exposure to specific companies while broadening
exposure in sectors we like.
* looking closely at who else owns, or is interested in, the stocks we hold, and
the effects of their investment style. Some investment styles are short-term
in nature and may increase volatility in a stock.
What sectors do we currently like? Enterprise software - these are programs
that help businesses become more efficient. One of our holdings here is J.D.
Edwards,<F3> whose software increases productivity by automating the key
functions of resource planning like accounting, human resources and production
scheduling. This company's revenue growth is approximately 50% yearly and
operating margins are continuing to expand.
In telecommunications, we continue to evaluate the popular but high-priced
Internet stocks such as Yahoo!, Amazon, Excite and Infoseek. While they may seem
like natural holdings for the Van Wagoner Funds and the Funds did hold them in
the past, we now believe they've appreciated well beyond company fundamentals,
presenting risks that outweigh potential rewards.
Instead, we're investing in the competitive local exchange carriers (CLECs)
who've emerged in response to the explosion in data traffic. Competing directly
with AT&T, Sprint and MCI, these companies provide voice, data and video
capacity at a lower cost with higher efficiency. Our favorite now is Metromedia
Fiber Network,<F3> a provider of fiber optic capacity in the northeastern U.S.
We also favor firms that support the Internet companies - such as Com21,<F3>
whose equipment provides access to the Internet through cable modems. We see
these stocks as a less speculative way to tap into Internet growth.
As consumer spending has continued strong, we've added to our retail holdings.
Here, as in other sectors, we look for innovative concepts supported by solid
business strategies - such as Pacific Sunwear,<F3> which uses a casual, beach-
oriented approach to reach the booming teenage market. The company has about 290
stores, adding 25%
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to 35% a year. Same-store sales were well above the industry average at 15% in
1997, and market share is increasing.
With a dedicated research staff and our fundamental approach, we're positioning
ourselves for a turnaround in the small-cap sector. We don't know when this new
cycle will begin but when it comes, it will come quickly; that's the nature of
growth stock investing. We appreciate your patience and we want you to know
we're working extremely hard. Like you, we're all shareholders - and we look
forward to improving results throughout 1998.
Sincerely,
/s/ Garrett R. Van Wagoner
Garrett R. Van Wagoner
<F1>Browning, E.S., "Stocks' Sharp Rebound Keeps Skeptics Puzzled," The Wall
Street Journal, July 20, 1998.
<F2>Fuerbringer, Jonathan, "Nasdaq Tops 2,000 as Dow and S.&P. Gauges Also Hit
Highs," The New York Times, July 17, 1998.
<F3>As of 6/30/98, Microsoft represented 0%, 0%, 0%, 0% and 0.6%; Cisco Systems
represented 0%, 0%, 1.7%, 0% and 1.0%; Dell Computer represented 0%, 0%,
0.2%, 1.1% and 1.0%; J.D. Edwards represented 0.6%, 0%, 1.2%, 0.8% and 0.5%;
Metromedia Fiber Network represented 0.3%, 0%, 0%, 0.8% and 0.5%; Com21
represented 2.5%, 2.1%, 2.0%, 2.1% and 1.3%; and Pacific Sunwear represented
0.4%, 0.8%, 0%, 0.5% and 0% of the Emerging Growth, Micro-Cap, Mid-Cap, Post-
Venture and Technology Funds, respectively. The Funds' portfolio composition
is subject to change at any time.
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VAN WAGONER EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
NUMBER
OF SHARES VALUE
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COMMON STOCKS 82.05%
AGRICULTURAL OPERATIONS 0.29%
23,000 AgriBioTech, Inc.<F1> $ 636,813
----------
BANKS - WEST/SOUTHWEST 0.28%
38,500 Colorado Business Bankshares, Inc.<F1> 616,000
----------
CHEMICALS - SPECIALTY 0.06%
12,300 NuCo2 Inc.<F1> 126,844
----------
COMMERCIAL SERVICES -
BUSINESS 0.95%
171,000 Dental Care Alliance, Inc.<F1> 1,966,500
21,600 Pentegra Dental Group, Inc.<F1> 148,500
----------
2,115,000
----------
COMMERCIAL SERVICES -
MISCELLANEOUS 2.26%
34,000 Abacus Direct Corp.<F1> 1,765,875
40,000 AnswerThink Consulting
Group, Inc.<F1> 860,000
63,000 Boron, LePore & Associates, Inc<F1> 2,394,000
----------
5,019,875
----------
COMMERCIAL SERVICES -
SCHOOLS 1.01%
22,500 Apollo Group, Inc.<F1> 743,906
41,500 Caliber Learning Network, Inc.<F1> 638,063
25,900 Education Management Corp.<F1> 851,462
----------
2,233,431
----------
COMMERCIAL SERVICES -
SECURITY/SAFETY 1.01%
35,000 Check Point Software
Technologies Ltd.<F1> 1,146,250
84,900 Rural/Metro Corp.<F1> 1,103,700
----------
2,249,950
----------
COMMERCIAL SERVICES -
STAFFING 0.46%
34,000 Romac International, Inc.<F1> 1,032,750
----------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMPUTERS - GRAPHICS 0.28%
15,000 Micromuse Inc.<F1> $ 612,188
----------
COMPUTERS - INTEGRATED
SYSTEMS 0.74%
40,000 Apex PC Solutions, Inc.<F1> 1,115,000
25,000 Peerless Systems Corp.<F1> 518,750
----------
1,633,750
----------
COMPUTERS - LOCAL
NETWORKS 1.60%
20,000 Ascend Communications, Inc.<F1> 991,250
37,500 Citrix Systems, Inc.<F1> 2,564,063
----------
3,555,313
----------
COMPUTERS - MEMORY
DEVICES 2.28%
46,000 Advanced Digital
Information Corp.<F1> 655,500
35,000 EMC Corp.<F1> 1,568,437
30,000 Legato Systems, Inc.<F1> 1,170,000
40,400 VERITAS Software Corp.<F1> 1,671,550
----------
5,065,487
----------
COMPUTERS - RETAIL/
WHOLESALE 5.02%
623,500 CHS Electronics, Inc.<F1> 11,145,062
----------
COMPUTERS - SERVICES 0.24%
19,000 Aris Corp.<F1> 532,000
----------
COMPUTERS - SOFTWARE 15.13%
187,200 Ariba Technologies<F1><F3> 2,340,000
7,750 Aspect Development, Inc.<F1> 586,094
928,100 Avant! Corp.<F1><F2> 22,970,475
20,000 CBT Group plc ADR<F1> 1,070,000
20,000 Compuware Corp.<F1> 1,022,500
30,000 HNC Software Inc.<F1> 1,224,375
30,000 J.D. Edwards & Co.<F1> 1,288,125
157,143 NetDynamics Inc.<F1><F3> 1,100,001
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VAN WAGONER EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
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COMPUTERS - SOFTWARE 15.13% (CONT'D.)
25,000 Saville Systems Ireland plc ADR<F1> $ 1,253,125
237,671 Unwired Planet<F1><F3> 762,924
-----------
33,617,619
-----------
COMPUTER SOFTWARE -
ENTERPRISE 0.53%
40,000 Software AG Systems, Inc.<F1> 1,170,000
-----------
COMPUTER SOFTWARE -
INTERNET 0.43%
12,500 EarthLink Network, Inc.<F1> 959,375
-----------
COMPUTER SOFTWARE -
MEDICAL 0.39%
119,500 OnHealth Network Co.<F1> 873,844
-----------
COMPUTER SOFTWARE -
SECURITY 0.35%
20,750 ISS Group, Inc.<F1> 780,719
-----------
ELECTRONICS - MEASURING
INSTRUMENTS 0.45%
49,300 Mettler-Toledo International, Inc.<F1> 989,081
-----------
ELECTRONICS - MISCELLANEOUS
COMPONENTS 1.43%
15,000 Aavid Thermal Technologies, Inc.<F1> 438,750
42,700 Alpha Industries, Inc.<F1> 637,831
54,000 Artisan Components, Inc.<F1> 729,000
50,000 RF Micro Devices, Inc.<F1> 543,750
55,500 Sawtek Inc.<F1> 818,625
-----------
3,167,956
-----------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 6.21%
30,000 Linear Technology Corp. 1,809,375
50,000 Maxim Integrated Products, Inc.<F1> 1,584,375
20,000 PMC-Sierra, Inc.<F1> 937,500
71,000 SDL, Inc.<F1> 1,695,125
150,000 SIPEX Corp.<F1> 3,225,000
NUMBER
OF SHARES VALUE
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ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 6.21% (cont'd.)
500,000 Transmeta Corp.<F1><F3> $ 3,000,000
50,000 Vitesse Semiconductor Corp.<F1> 1,543,750
-----------
13,795,125
-----------
ENERGY - ALTERNATIVE SOURCES 0.73%
75,000 KTI, Inc.<F1> 1,621,875
-----------
ENERGY - SERVICES 0.27%
30,000 Nabors Industries, Inc.<F1> 594,375
-----------
FINANCE - CONSUMER LOANS 0.90%
40,000 Household International, Inc. 1,990,000
-----------
FINANCE - MORTGAGE & RELATED
SERVICES 0.37%
20,000 Ames Department Stores, Inc.<F1> 526,250
10,000 Heller Financial, Inc.<F1> 300,000
-----------
826,250
-----------
LEISURE - GAMES & TOYS 0.18%
21,000 The First Years, Inc. 399,000
-----------
LEISURE - SERVICES 1.94%
35,000 Carnival Corp. 1,386,875
20,000 Royal Caribbean Cruises Ltd. 1,590,000
22,100 Steiner Leisure Ltd.<F1> 668,525
20,000 Travel Services International, Inc.<F1> 657,500
-----------
4,302,900
-----------
MEDIA 0.89%
40,000 Chancellor Media Corp.<F1> 1,986,248
-----------
MEDICAL/DENTAL SUPPLIES 0.76%
15,000 STERIS Corp.<F1> 953,905
20,000 The Cooper Companies, Inc.<F1> 728,750
-----------
1,682,655
-----------
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VAN WAGONER EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
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MEDICAL - INFORMATION
SERVICES 0.70%
40,000 HBO & Co. $1,410,000
3,000 IDX Systems Corp.<F1> 138,187
-----------
1,548,187
-----------
MEDICAL - INSTRUMENTS 1.08%
17,500 Arterial Vascular Engineering, Inc.<F1> 625,625
221,800 IRIDEX Corp.<F1> 1,774,400
-----------
2,400,025
-----------
MEDICAL - OUTPATIENT/
HOME 2.17%
40,000 Renal Care Group, Inc.<F1> 1,762,500
88,450 Total Renal Care Holdings, Inc.<F1> 3,051,525
-----------
4,814,025
-----------
MEDICAL - PRODUCTS 1.78%
45,000 PAREXEL International Corp.<F1> 1,636,875
105,000 Pharmaceutical Product
Development, Inc.<F1> 2,310,000
-----------
3,946,875
-----------
MULTI INDUSTRY 0.67%
30,000 Veritas DGC Inc.<F1> 1,498,125
-----------
OIL & GAS 2.91%
55,000 Cal Dive International, Inc.<F1> 1,515,938
40,000 Friede Goldman International, Inc.<F1> 1,155,000
124,000 Global Industries Ltd.<F1> 2,092,500
125,300 OMNI Energy Services Corp.<F1> 1,707,212
-----------
6,470,650
-----------
OIL & GAS - EXPLORATION 1.22%
86,800 Brigham Exploration Co.<F1> 770,350
40,000 Callon Petroleum Co.<F1> 572,500
77,200 Comstock Resources, Inc.<F1> 574,175
50,000 Swift Energy Co.<F1> 796,875
-----------
2,713,900
-----------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
OIL & GAS - FIELD SERVICES 2.43%
102,100 Ceanic Corp.<F1> $1,978,187
37,000 Eagle Geophysical, Inc.<F1> 388,500
119,600 Horizon Offshore, Inc.<F1> 1,173,575
310,000 TransCoastal Marine Services, Inc.<F1> 1,869,672
-----------
5,409,934
-----------
OIL & GAS - INTERNATIONAL 0.02%
3,000 Petsec Energy Limited ADR<F1> 48,563
-----------
OIL & GAS - MACHINERY &
EQUIPMENT 2.65%
20,000 Cooper Cameron Corp.<F1> 1,020,000
58,200 Dril-Quip, Inc.<F1> 1,527,750
36,950 Gulf Island Fabrication, Inc.<F1> 692,813
5,950 Smith International, Inc.<F1> 207,134
123,600 Varco International, Inc.<F1> 2,448,825
-----------
5,896,522
-----------
POLLUTION CONTROL -
EQUIPMENT 0.74%
335,100 Flanders Corp.<F1> 1,633,612
-----------
POLLUTION CONTROL - SERVICES 1.95%
25,000 Allied Waste Industries, Inc.<F1> 600,000
25,000 American Disposal Services, Inc.<F1> 1,171,875
70,000 Newpark Resources, Inc.<F1> 778,750
63,000 Tetra Tech, Inc.<F1> 1,527,750
12,400 Waste Industries, Inc.<F1> 258,075
-----------
4,336,450
-----------
RESTAURANTS 2.63%
362,500 Famous Dave's of America, Inc.<F1> 1,812,500
44,000 Morton's Restaurant Group, Inc.<F1> 1,058,750
22,500 PJ America, Inc.<F1> 410,625
100,000 Rainforest Cafe, Inc.<F1> 1,387,500
187,000 Taco Cabana, Inc.<F1> 1,180,437
-----------
5,849,812
-----------
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VAN WAGONER EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
RETAIL - APPAREL/SHOES 1.34%
30,000 Gadzooks, Inc.<F1> $ 826,875
30,000 Just For Feet, Inc.<F1> 855,000
15,000 Ross Stores, Inc. 645,000
20,000 The Wet Seal, Inc.<F1> 640,000
-----------
2,966,875
-----------
RETAIL - DEPARTMENT STORES 0.49%
27,500 Dollar General Corp. 1,087,969
-----------
RETAIL - DISCOUNT/VARIETY 1.01%
69,000 Family Dollar Stores, Inc. 1,276,500
40,000 TJX Companies, Inc. 965,000
-----------
2,241,500
-----------
RETAIL - MAIL ORDER/DIRECT 0.90%
278,291 Garden Escape<F1><F3> 1,046,374
27,500 Pacific Sunwear of California, Inc.<F1> 962,500
-----------
2,008,874
-----------
TELECOMMUNICATIONS -
EQUIPMENT 3.85%
20,000 Advanced Fibre
Communications, Inc.<F1> 801,250
15,000 CIENA Corp.<F1> 1,044,375
69,000 Galileo Corp.<F1> 819,375
15,600 Metromedia Fiber Network, Inc.<F1> 727,350
538,571 Netro Corp.<F1><F3> 3,769,997
15,000 Tekelec<F1> 671,250
10,000 Tellabs, Inc.<F1> 716,250
-----------
8,549,847
-----------
TELECOMMUNICATIONS -
SERVICES 5.39%
287,356 Com21, Inc.<F1><F3> 5,495,683
20,000 Intermedia Communications Inc.<F1> 838,750
15,000 Level 3 Communications, Inc.<F1> 1,110,000
10,000 MediaOne Group, Inc.<F1> 439,375
40,000 MetroNet Communications Corp.<F1> 1,130,000
34,000 Qwest Communication
International Inc.<F1> 1,185,750
NUMBER
OF SHARES VALUE
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TELECOMMUNICATIONS -
SERVICES 5.39% (CONT'D.)
60,000 Telegroup, Inc.<F1> $ 555,000
273 US West, Inc. 12,836
40,000 World Access, Inc.<F1> 1,200,000
-----------
11,967,394
-----------
TEXTILE - APPAREL
MANUFACTURING 0.48%
40,000 Nautica Enterprises, Inc.<F1> 1,072,500
-----------
WASTE DISPOSAL 0.20%
15,000 Superior Services, Inc.<F1> 450,938
-----------
Total Common Stocks
(cost $164,308,495) 182,244,062
-----------
PRINCIPAL
AMOUNT
- -------------
U.S. TREASURY BILLS 22.51%
$52,470,000 U.S. Treasury Bills, 5/27/99 50,007,408
-----------
Total U.S. Treasury Bills
(cost $50,007,408) 50,007,408
-----------
REPURCHASE AGREEMENTS 0.40%
891,000 UMB Bank, n.a., 5.05%, dated
6/30/98, repurchase price
$891,123 maturing 7/1/98
(collateralized by U.S. Treasury
Notes, 6.875%, 7/31/99) 891,000
-----------
Total Repurchase Agreements
(cost $891,000) 891,000
-----------
VAN WAGONER FUNDS
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VAN WAGONER EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (cont'd.)
VALUE
------------
Total Investments 104.96%
(cost $215,206,903) $233,142,470
Liabilities less
Other Assets (4.96)% (11,011,986)
------------
NET ASSETS 100.00% $222,130,484
============
NUMBER
OF SHARES
------------
SECURITIES SOLDSHORT
32,500 Broadcom Corp. $ 2,392,813
------------
Total Securities Sold Short
(proceeds $1,947,373) $ 2,392,813
============
NUMBER
OF CONTRACTS
------------
CALL OPTIONS WRITTEN
981 Avant! Corp., expires 7/30/98,
exercise price $30 $ 49,050
------------
Total Call Options Written
(proceeds $101,285) $ 49,050
============
<F1>Non-income producing
<F2>Affiliated company - see Note 6
<F3>Purchased in a private placement transaction; resale to the public may
require registration or sale only to qualified institutional buyers.
Security is valued under procedures established by the Board of Directors.
See notes to financial statements.
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VAN WAGONER MICRO-CAP FUND
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 76.88%
AEROSPACE 0.58%
10,000 SBS Technologies, Inc.<F1> $ 301,250
----------
BANKS - WEST/SOUTHWEST 0.62%
20,000 Colorado Business Bankshares, Inc.<F1> 320,000
----------
CHEMICALS - SPECIALTY 0.30%
15,200 NuCo2 Inc.<F1> 156,750
----------
COMMERCIAL SERVICES -
BUSINESS 1.11%
50,000 Dental Care Alliance, Inc.<F1> 575,000
----------
COMMERCIAL SERVICES -
MISCELLANEOUS 3.67%
5,000 Abacus Direct Corp.<F1> 259,687
5,000 AnswerThink Consulting
Group, Inc.<F1> 107,500
22,500 Boron, LePore & Associates, Inc.<F1> 855,000
5,000 INSpire Insurance Solutions, Inc.<F1> 166,250
10,000 MedQuist, Inc.<F1> 288,750
5,000 ProBusiness Services, Inc.<F1> 233,750
----------
1,910,937
----------
COMMERCIAL SERVICES -
SCHOOLS 2.01%
25,000 Caliber Learning Network, Inc.<F1> 384,375
15,000 Computer Learning Centers, Inc.<F1> 373,125
8,800 Education Management Corp.<F1> 289,300
----------
1,046,800
----------
COMMERCIAL SERVICES -
SECURITY/SAFETY 0.47%
7,500 Check Point Software
Technologies Ltd.<F1> 245,625
----------
COMPUTERS - GRAPHICS 0.59%
7,500 Micromuse Inc.<F1> 306,094
----------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMPUTERS - INTEGRATED
SYSTEMS 2.43%
30,000 Apex PC Solutions, Inc.<F1> $ 836,250
8,000 Mercury Computer Systems, Inc.<F1> 116,000
15,000 Peerless Systems Corp.<F1> 311,250
----------
1,263,500
----------
COMPUTERS - MEMORY
DEVICES 0.41%
15,000 Advanced Digital
Information Corp.<F1> 213,750
----------
COMPUTERS - PERIPHERALS 0.45%
15,000 NeoMagic Corp.<F1> 232,500
----------
COMPUTERS - RETAIL/
WHOLESALE 4.87%
133,000 CHS Electronics, Inc.<F1> 2,377,375
6,000 Pomeroy Computer
Resources, Inc.<F1> 156,375
----------
2,533,750
----------
COMPUTERS - SERVICES 0.54%
10,000 Aris Corp.<F1> 280,000
----------
COMPUTERS - SOFTWARE 6.91%
40,800 Ariba Technologies<F1><F3> 510,000
93,000 Avant! Corp.<F1> 2,301,750
10,000 Great Plains Software, Inc.<F1> 338,750
35,714 NetDynamics Inc.<F1><F3> 249,998
60,200 Unwired Planet<F1><F3> 193,242
----------
3,593,740
----------
COMPUTER SOFTWARE -
ENTERPRISE 0.65%
20,000 Business Objects S.A.<F1> 337,500
----------
COMPUTER SOFTWARE -
MEDICAL 0.70%
50,000 OnHealth Network Co.<F1> 365,625
----------
VAN WAGONER FUNDS
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SEMI-ANNUAL REPORT
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VAN WAGONER MICRO-CAP FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMPUTER SOFTWARE -
SECURITY 0.58%
8,000 ISS Group, Inc.<F1> $ 301,000
----------
ELECTRONICS - MEASURING
INSTRUMENTS 2.01%
52,000 Mettler-Toledo International Inc.<F1> 1,043,250
----------
ELECTRONICS - MISCELLANEOUS
COMPONENTS 1.66%
10,000 Aavid Thermal Technologies, Inc.<F1> 292,500
10,000 Alpha Industries, Inc.<F1> 149,375
15,000 Artisan Components, Inc.<F1> 202,500
20,000 RF Micro Devices, Inc.<F1> 217,500
----------
861,875
----------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 3.57%
15,500 SDL, Inc.<F1> 370,063
25,800 SEEQ Technology, Inc.<F1> 46,762
35,000 SIPEX Corp.<F1> 752,500
115,000 Transmeta Corp.<F1><F3> 690,000
----------
1,859,325
----------
ENERGY - ALTERNATIVE SOURCES 0.73%
17,500 KTI, Inc.<F1> 378,437
----------
INFORMATION SERVICES 0.90%
15,000 Data Processing Resources Corp.<F1> 465,938
----------
LEISURE - GAMES & TOYS 0.50%
13,600 The First Years Inc. 258,400
----------
LEISURE - SERVICES 0.92%
5,000 Steiner Leisure Ltd.<F1> 151,250
10,000 Travel Services International, Inc.<F1> 328,750
----------
480,000
----------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
MEDIA 0.55%
6,000 Emmis Broadcasting Corp.<F1> $ 286,875
----------
MEDICAL/DENTAL SERVICES 1.36%
28,000 ICON plc<F1> 707,000
----------
MEDICAL - INFORMATION
SERVICES 0.54%
27,000 MECON, Inc.<F1> 280,125
----------
MEDICAL - INSTRUMENTS 2.15%
140,000 IRIDEX Corp.<F1> 1,120,000
----------
MEDICAL - PRODUCTS 1.06%
25,000 Pharmaceutical Product
Development, Inc.<F1> 550,000
----------
OIL & GAS 1.69%
15,000 Cal Dive International, Inc.<F1> 413,437
34,100 OMNI Energy Services Corp.<F1> 464,613
----------
878,050
----------
OIL & GAS - DRILLING 1.85%
12,000 Atwood Oceanics, Inc.<F1> 477,750
15,000 Cliffs Drilling Co.<F1> 492,188
----------
969,938
----------
OIL & GAS - EXPLORATION 1.66%
27,250 Brigham Exploration Co.<F1> 241,844
12,000 Callon Petroleum Co.<F1> 171,750
23,800 Comstock Resources, Inc.<F1> 177,012
17,000 Swift Energy Co.<F1> 270,938
----------
861,544
----------
OIL & GAS - FIELD SERVICES 4.77%
25,000 Ceanic Corp.<F1> 484,375
28,400 Dawson Geophysical Co.<F1> 539,600
25,500 Eagle Geophysical, Inc.<F1> 267,750
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER MICRO-CAP FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
OIL & GAS - FIELD SERVICES 4.77% (CONT'D.)
38,000 Horizon Offshore, Inc.<F1> $ 372,875
135,000 TransCoastal Marine Services, Inc.<F1> 814,211
----------
2,478,811
----------
OIL & GAS - MACHINERY &
EQUIPMENT 2.80%
10,000 Cooper Cameron Corp.<F1> 510,000
14,600 Dril-Quip, Inc.<F1> 383,250
30,000 Gulf Island Fabrication, Inc.<F1> 562,500
----------
1,455,750
----------
POLLUTION CONTROL -
EQUIPMENT 0.70%
75,000 Flanders Corp.<F1> 365,625
----------
POLLUTION CONTROL - SERVICES 3.76%
34,500 Tetra Tech, Inc.<F1> 836,625
25,000 Waste Connections, Inc.<F1> 496,875
30,000 Waste Industries, Inc.<F1> 624,375
----------
1,957,875
----------
RESTAURANTS 4.24%
85,000 Famous Dave's of America, Inc.<F1> 425,000
15,000 Morton's Restaurant Group, Inc.<F1> 360,937
30,000 PJ America Inc.<F1> 547,500
25,000 Rainforest Cafe, Inc.<F1> 346,875
83,000 Taco Cabana, Inc.<F1> 523,938
----------
2,204,250
----------
RETAIL - APPAREL/SHOES 2.75%
20,000 Gadzooks, Inc.<F1> 551,250
15,000 Just For Feet, Inc.<F1> 427,500
7,500 The Finish Line, Inc.<F1> 210,938
7,500 The Wet Seal, Inc.<F1> 240,000
----------
1,429,688
----------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
RETAIL - MAIL ORDER/DIRECT 2.47%
18,000 DM Management Co.<F1> $ 645,750
62,533 Garden Escape<F1><F3> 235,124
11,500 Pacific Sunwear of California, Inc.<F1> 402,500
----------
1,283,374
----------
TELECOMMUNICATIONS -
EQUIPMENT 3.35%
41,300 Galileo Corp.<F1> 490,437
20,000 Inter-Tel, Inc. 320,000
132,857 Netro Corp.<F1><F3> 929,999
----------
1,740,436
----------
TELECOMMUNICATIONS -
SERVICES 3.13%
57,471 Com21, Inc.<F1><F3> 1,099,133
25,000 Telegroup, Inc.<F1> 231,250
10,000 World Access, Inc.<F1> 300,000
----------
1,630,383
----------
WASTE DISPOSAL 0.87%
15,000 Superior Services, Inc.<F1> 450,937
----------
Total Common Stocks
(cost $37,460,136) 39,981,707
----------
PRINCIPAL
AMOUNT
-----------
U.S. TREASURY BILLS 7.69%
$4,197,000 U.S. Treasury Bills, 5/27/99 4,000,021
----------
Total U.S. Treasury Bills
(cost $4,000,021) 4,000,021
----------
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER MICRO-CAP FUND
SCHEDULE OF INVESTMENTS (cont'd.)
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------
REPURCHASE AGREEMENTS 8.14%
$4,235,000 UMB Bank, n.a., 5.05%, dated
6/30/98, repurchase price
$4,235,586, maturing 7/1/98
(collateralized by U.S. Treasury
Notes, 5.75%, 9/30/99) $ 4,235,000
-----------
Total Repurchase Agreements
(cost $4,235,000) 4,235,000
SHORT-TERM INVESTMENTS 0.00% -----------
223 UMB Bank, n.a., Money
Market Fiduciary 223
-----------
Total Short-Term Investments
(cost $223) 223
-----------
Total Investments 92.71%
(cost $45,695,380) 48,216,951
Other Assets
less Liabilities 7.29% 3,790,815
-----------
NET ASSETS 100.00% $52,007,766
===========
<F1>Non-income producing
<F3>Purchased in a private placement transaction; resale to the public may
require registration or sale only to qualified institutional buyers.
Security is valued under procedures established by the Board of Directors.
See notes to financial statements.
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER MID-CAP FUND
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 90.32%
BANKS - SOUTHEAST 0.97%
16,500 First Tennessee National Corp. $ 520,781
----------
COMMERCIAL SERVICES -
MISCELLANEOUS 0.57%
7,500 International Network Services<F1> 307,500
----------
COMMERCIAL SERVICES -
SCHOOLS 2.45%
22,500 Apollo Group, Inc.<F1> 743,906
17,500 Sylvan Learning Systems, Inc.<F1> 573,125
----------
1,317,031
----------
COMMERCIAL SERVICES -
SECURITY/SAFETY 1.82%
30,000 Check Point Software
Technologies Ltd.<F1> 982,500
----------
COMPUTERS - LOCAL
NETWORKS 3.26%
10,000 Ascend Communications, Inc.<F1> 495,625
10,000 Cisco Systems, Inc.<F1> 920,625
5,000 Citrix Systems, Inc.<F1> 341,875
----------
1,758,125
----------
COMPUTERS - MEMORY
DEVICES 3.52%
17,500 EMC Corp.<F1> 784,219
10,000 Legato Systems, Inc.<F1> 390,000
17,500 VERITAS Software Corp.<F1> 724,062
----------
1,898,281
----------
COMPUTERS - MINI/MICRO 0.17%
1,000 Dell Computer Corp.<F1> 92,813
----------
COMPUTERS - RETAIL/
WHOLESALE 4.40%
132,500 CHS Electronics, Inc.<F1> 2,368,437
----------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMPUTERS - SERVICES 4.02%
5,000 America Online, Inc.<F1> $ 530,000
8,500 Cambridge Technology
Partners, Inc.<F1> 464,313
15,000 Computer Horizons Corp.<F1> 555,937
17,500 Gartner Group, Inc.<F1> 612,500
----------
2,162,750
----------
COMPUTERS - SOFTWARE 8.66%
2,500 Aspect Development, Inc.<F1> 189,063
37,500 Avant! Corp.<F1> 928,125
12,500 CBT Group plc ADR<F1> 668,750
15,000 Compuware Corp.<F1> 766,875
15,000 J.D. Edwards & Co.<F1> 644,062
12,500 PeopleSoft, Inc.<F1> 587,500
17,500 Saville Systems Ireland plc ADR<F1> 877,187
----------
4,661,562
----------
COMPUTER SOFTWARE - EDUCATIONAL/
ENTERTAINMENT 0.75%
7,500 Electronic Arts Inc.<F1> 405,000
----------
COMPUTER SOFTWARE -
ENTERPRISE 3.56%
10,000 Computer Associates
International, Inc. 555,625
12,000 Sapient Corp.<F1> 633,000
25,000 Software AG Systems, Inc.<F1> 731,250
----------
1,919,875
----------
COMPUTER SOFTWARE -
INTERNET 0.43%
3,000 EarthLink Network, Inc.<F1> 230,250
----------
ELECTRONICS - SEMICONDUCTOR
EQUIPMENT 0.64%
10,000 DuPont Photomasks, Inc.<F1> 345,000
----------
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER MID-CAP FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 1.19%
1,000 Linear Technology Corp. $ 60,312
1,000 Maxim Integrated Products, Inc.<F1> 31,688
4,000 PMC-Sierra, Inc.<F1> 187,500
2,500 SIPEX Corp.<F1> 53,750
10,000 Vitesse Semiconductor Corp.<F1> 308,750
----------
642,000
----------
FINANCE - CONSUMER LOANS 2.73%
30,000 SLM Holding Corp. 1,470,000
----------
FINANCE - INVESTMENT
BANKING 1.59%
20,000 A.G. Edwards, Inc. 853,750
----------
FINANCE - INVESTMENT
MANAGEMENT 1.38%
15,000 Kansas City Southern
Industries, Inc. 744,375
----------
FUNERAL SERVICES 0.86%
17,500 Stewart Enterprises, Inc. 465,938
----------
INSURANCE 1.66%
5,000 CMAC Investment Corp. 307,500
12,500 Conseco, Inc. 584,375
----------
891,875
----------
INSURANCE - PROPERTY/CASUALTY/
TITLE 1.08%
7,500 EXEL Ltd. 583,594
----------
LEISURE - SERVICES 1.10%
15,000 Carnival Corp. 594,375
----------
MEDIA 4.56%
17,500 Emmis Broadcasting Corp.<F1> 836,719
15,000 Heftel Broadcasting Corp.<F1> 671,250
----------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
MEDIA 4.56% (CONT'D.)
33,000 Sinclair Broadcast Group, Inc.<F1> $ 948,750
----------
2,456,719
----------
MEDICAL/DENTAL SUPPLIES 2.32%
12,500 STERIS Corp.<F1> 794,921
12,500 The Cooper Companies, Inc.<F1> 455,469
----------
1,250,390
----------
MEDICAL - INFORMATION
SERVICES 2.71%
25,000 HBO & Co. 881,250
12,500 IDX Systems Corp.<F1> 575,781
----------
1,457,031
----------
MEDICAL - INSTRUMENTS 1.00%
15,000 Arterial Vascular Engineering, Inc.<F1> 536,250
----------
MEDICAL - NURSING HOMES 1.00%
20,000 CareMatrix Corp.<F1> 538,750
----------
MEDICAL - OUTPATIENT/
HOME 3.90%
30,000 Renal Care Group, Inc.<F1> 1,321,875
22,500 Total Renal Care Holdings, Inc.<F1> 776,250
----------
2,098,125
----------
OIL & GAS 0.11%
1,000 Coflexip S.A. ADR 61,125
----------
OIL & GAS - FIELD SERVICES 0.26%
2,500 Halliburton Co. 111,406
1,000 Stolt Comex Seaway, S.A.<F1> 19,375
500 Stolt Comex Seaway, S.A. ADR<F1> 8,750
----------
139,531
----------
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER MID-CAP FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
OIL & GAS - MACHINERY &
EQUIPMENT 3.18%
10,000 Cooper Cameron Corp.<F1> $ 510,000
17,500 Smith International, Inc.<F1> 609,219
30,000 Varco International, Inc.<F1> 594,375
----------
1,713,594
----------
POLLUTION CONTROL - SERVICES 2.27%
17,500 Allied Waste Industries, Inc.<F1> 420,000
10,000 American Disposal Services, Inc.<F1> 468,750
30,000 Newpark Resources, Inc.<F1> 333,750
----------
1,222,500
----------
RESTAURANTS 2.19%
22,500 Landry's Seafood Restaurants, Inc.<F1> 407,108
14,500 Starbucks Corp.<F1> 774,844
----------
1,181,952
----------
RETAIL - APPAREL/SHOES 3.38%
20,000 Ross Stores, Inc. 860,000
30,000 The Wet Seal, Inc.<F1> 960,000
----------
1,820,000
----------
RETAIL - DEPARTMENT STORES 0.94%
12,500 Proffitt's, Inc.<F1> 504,688
----------
RETAIL - DISCOUNT/VARIETY 1.91%
12,500 BJ's Wholesale Club, Inc.<F1> 507,813
15,000 Family Dollar Stores, Inc. 277,500
10,000 TJX Companies, Inc. 241,250
----------
1,026,563
----------
RETAIL - HOME FURNISHINGS 0.79%
12,000 Department 56, Inc.<F1> 426,000
----------
RETAIL - MAIL ORDER/DIRECT 0.19%
1,000 Amazon.com, Inc.<F1> 99,750
----------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
SUPERMARKETS 0.76%
10,000 Safeway Inc.<F1> $ 406,875
----------
TELECOMMUNICATIONS -
CELLULAR 0.99%
10,000 Iridium World
Communications Ltd.<F1> 531,875
----------
TELECOMMUNICATIONS -
EQUIPMENT 3.06%
12,500 Advanced Fibre
Communications, Inc.<F1> 500,781
12,500 CIENA Corp.<F1> 870,312
1,000 Lucent Technologies Inc. 83,188
5,000 Premisys Communications, Inc.<F1> 124,375
1,000 Tellabs, Inc.<F1> 71,625
----------
1,650,281
----------
TELECOMMUNICATIONS -
SERVICES 5.94%
50,000 Com21, Inc.<F1> 1,062,500
15,000 Intermedia Communications Inc.<F1> 629,063
27,500 Nextel Communications, Inc.<F1> 684,062
27,500 RSL Communications, Ltd.
Class A<F1> 825,000
----------
3,200,625
----------
TEXTILE - APPAREL
MANUFACTURING 0.87%
17,500 Nautica Enterprises, Inc.<F1> 469,219
----------
TRANSPORTATION - AIRLINE 1.18%
17,500 Midwest Express Holdings, Inc.<F1> 633,281
----------
Total Common Stocks
(cost $42,394,581) 48,640,936
----------
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER MID-CAP FUND
SCHEDULE OF INVESTMENTS (cont'd.)
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------
REPURCHASE AGREEMENTS 8.27%
$4,456,000 UMB Bank, n.a., 5.05%, dated
6/30/98, repurchase price
$4,456,617, maturing 7/1/98
(collateralized by U.S. Treasury
Notes, 5.75%, 9/30/99) $ 4,456,000
-----------
Total Repurchase Agreements
(cost $4,456,000) 4,456,000
-----------
SHORT-TERM INVESTMENTS 0.00%
793 UMB Bank, n.a., Money
Market Fiduciary 793
-----------
Total Short-Term Investments
(cost $793) 793
-----------
Total Investments 98.59%
(cost $46,851,374) 53,097,729
Other Assets
less Liabilities 1.41% 760,123
-----------
NET ASSETS 100.00% $53,857,852
============
<F1>Non-income producing
See notes to financial statements.
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER POST-VENTURE FUND
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 88.23%
AGRICULTURAL OPERATIONS 0.65%
4,000 AgriBioTech, Inc.<F1> $110,750
--------
BANKS - WEST/SOUTHWEST 0.75%
8,000 Colorado Business Bankshares, Inc.<F1> 128,000
--------
CHEMICALS - SPECIALTY 0.61%
10,000 NuCo2 Inc.<F1> 103,125
--------
COMMERCIAL SERVICES -
BUSINESS 1.27%
15,000 Dental Care Alliance, Inc.<F1> 172,500
6,300 Pentegra Dental Group, Inc.<F1> 43,313
--------
215,813
--------
COMMERCIAL SERVICES -
MISCELLANEOUS 2.89%
2,900 Abacus Direct Corp.<F1> 150,619
3,000 AnswerThink Consulting
Group, Inc.<F1> 64,500
5,000 Boron, LePore & Associates, Inc.<F1> 190,000
3,000 MedQuist, Inc.<F1> 86,625
--------
491,744
--------
COMMERCIAL SERVICES -
SCHOOLS 1.67%
2,250 Apollo Group, Inc.<F1> 74,390
7,250 Caliber Learning Network, Inc.<F1> 111,469
3,000 Education Management Corp.<F1> 98,625
--------
284,484
--------
COMMERCIAL SERVICES -
SECURITY/SAFETY 1.82%
2,500 Check Point Software
Technologies Ltd.<F1> 81,875
17,500 Rural/Metro Corp.<F1> 227,500
--------
309,375
--------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMMERCIAL SERVICES -
STAFFING 0.53%
3,000 Romac International, Inc.<F1> $ 91,125
--------
COMPUTERS - GRAPHICS 0.36%
1,500 Micromuse Inc.<F1> 61,219
--------
COMPUTERS - INTEGRATED
SYSTEMS 1.45%
7,000 Apex PC Solutions, Inc.<F1> 195,125
2,500 Peerless Systems Corp.<F1> 51,875
--------
247,000
--------
COMPUTERS - LOCAL
NETWORKS 1.04%
1,500 Ascend Communications, Inc.<F1> 74,344
1,500 Citrix Systems, Inc.<F1> 102,562
--------
176,906
--------
COMPUTERS - MEMORY
DEVICES 2.05%
3,000 Advanced Digital
Information Corp.<F1> 42,750
6,000 Intevac, Inc.<F1> 64,500
3,000 Legato Systems, Inc.<F1> 117,000
3,000 VERITAS Software Corp.<F1> 124,125
--------
348,375
--------
COMPUTERS - MINI/MICRO 1.09%
2,000 Dell Computer Corp.<F1> 185,625
--------
COMPUTERS - RETAIL/
WHOLESALE 5.77%
55,000 CHS Electronics, Inc.<F1> 983,125
--------
COMPUTERS - SERVICES 0.49%
3,000 Aris Corp.<F1> 84,000
--------
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER POST-VENTURE FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMPUTERS - SOFTWARE 9.56%
12,000 Ariba Technologies<F1><F3> $ 150,000
30,000 Avant! Corp.<F1> 742,500
1,500 CBT Group plc ADR<F1> 80,250
3,500 HNC Software Inc.<F1> 142,844
3,000 J.D. Edwards & Co.<F1> 128,812
7,143 NetDynamics Inc.<F1><F3> 50,001
4,000 Netscape Communications Corp.<F1> 108,250
3,500 Saville Systems Ireland plc ADR<F1> 175,437
15,840 Unwired Planet<F1><F3> 50,846
----------
1,628,940
----------
COMPUTER SOFTWARE -
ENTERPRISE 0.84%
1,500 International Integration Inc.<F1> 25,875
4,000 Software AG Systems, Inc.<F1> 117,000
----------
142,875
----------
COMPUTER SOFTWARE -
INTERNET 0.45%
1,000 EarthLink Network, Inc.<F1> 76,750
----------
COMPUTER SOFTWARE -
MEDICAL 0.64%
15,000 OnHealth Network Co.<F1> 109,687
----------
COMPUTER SOFTWARE -
SECURITY 0.22%
1,000 ISS Group, Inc.<F1> 37,625
----------
ELECTRONICS - MEASURING
INSTRUMENTS 1.39%
11,800 Mettler-Toledo International Inc.<F1> 236,737
----------
ELECTRONICS - MISCELLANEOUS
COMPONENTS 1.75%
3,000 Aavid Thermal Technologies, Inc.<F1> 87,750
5,000 Artisan Components, Inc.<F1> 67,500
5,000 RF Micro Devices, Inc.<F1> 54,375
6,000 Sawtek Inc.<F1> 88,500
----------
298,125
----------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 6.70%
2,250 Linear Technology Corp. $ 135,703
3,000 Maxim Integrated Products, Inc.<F1> 95,063
1,500 PMC-Sierra, Inc.<F1> 70,313
6,500 SDL, Inc.<F1> 155,187
13,500 SIPEX Corp.<F1> 290,250
40,000 Transmeta Corp.<F1><F3> 240,000
5,000 Vitesse Semiconductor Corp.<F1> 154,375
----------
1,140,891
----------
ENERGY - ALTERNATIVE SOURCES 0.76%
6,000 KTI, Inc.<F1> 129,750
----------
FINANCE - MORTGAGE & RELATED
SERVICES 0.46%
3,000 Ames Department Stores, Inc.<F1> 78,937
----------
LEISURE - SERVICES 2.24%
3,000 Carnival Corp. 118,875
1,500 Royal Caribbean Cruises Ltd. 119,250
1,500 Steiner Leisure Ltd.<F1> 45,375
3,000 Travel Services International, Inc.<F1> 98,625
----------
382,125
----------
MEDIA 1.31%
4,500 Chancellor Media Corp.<F1> 223,453
----------
MEDICAL/DENTAL SUPPLIES 2.50%
10,000 ICON plc<F1> 252,500
1,000 STERIS Corp.<F1> 63,594
3,000 The Cooper Companies, Inc.<F1> 109,312
----------
425,406
----------
MEDICAL - INFORMATION
SERVICES 1.01%
1,500 IDX Systems Corp.<F1> 69,094
10,000 MECON, Inc.<F1> 103,750
----------
172,844
----------
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER POST-VENTURE FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
MEDICAL - INSTRUMENTS 1.41%
30,000 IRIDEX Corp.<F1> $240,000
--------
MEDICAL - OUTPATIENT/HOME 1.59%
3,000 Renal Care Group, Inc.<F1> 132,188
4,000 Total Renal Care Holdings, Inc.<F1> 138,000
--------
270,188
--------
MEDICAL - PRODUCTS 2.23%
5,000 PAREXEL International Corp.<F1> 181,875
9,000 Pharmaceutical Product
Development, Inc.<F1> 198,000
--------
379,875
--------
OIL & GAS 2.70%
4,000 Cal Dive International, Inc.<F1> 110,250
5,000 Friede Goldman International, Inc.<F1> 144,375
15,000 OMNI Energy Services Corp.<F1> 204,375
--------
459,000
--------
OIL & GAS - EXPLORATION 0.54%
2,000 Brigham Exploration Co.<F1> 17,750
10,000 Comstock Resources, Inc.<F1> 74,375
--------
92,125
--------
OIL & GAS - FIELD SERVICES 1.89%
5,000 Eagle Geophysical, Inc.<F1> 52,500
9,000 Horizon Offshore, Inc.<F1> 88,313
30,000 TransCoastal Marine Services, Inc.<F1> 180,936
--------
321,749
--------
OIL & GAS - MACHINERY &
EQUIPMENT 1.56%
3,000 Dril-Quip, Inc.<F1> 78,750
10,000 Gulf Island Fabrication, Inc.<F1> 187,500
--------
266,250
--------
POLLUTION CONTROL -
EQUIPMENT 0.40%
14,000 Flanders Corp.<F1> 68,250
--------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
POLLUTION CONTROL - SERVICES 3.40%
2,000 American Disposal Services, Inc.<F1> $ 93,750
7,500 Tetra Tech, Inc.<F1> 181,875
10,000 Waste Connections, Inc.<F1> 198,750
5,000 Waste Industries, Inc.<F1> 104,063
--------
578,438
--------
RESTAURANTS 2.00%
27,000 Famous Dave's of America, Inc.<F1> 135,000
7,500 PJ America Inc.<F1> 136,875
5,000 Rainforest Cafe, Inc.<F1> 69,375
--------
341,250
--------
RETAIL - APPAREL/SHOES 2.39%
2,500 Gadzooks, Inc.<F1> 68,906
6,000 Just For Feet, Inc.<F1> 171,000
2,500 The Finish Line, Inc.<F1> 70,313
3,000 The Wet Seal, Inc.<F1> 96,000
--------
406,219
--------
RETAIL - HOME FURNISHINGS 0.89%
6,000 Restoration Hardware, Inc.<F1> 150,750
--------
RETAIL - MAIL ORDER/DIRECT 1.95%
5,000 DM Management Co.<F1> 179,375
19,747 Garden Escape<F1><F3> 74,249
2,250 Pacific Sunwear of California, Inc.<F1> 78,750
--------
332,374
--------
TELECOMMUNICATIONS -
EQUIPMENT 5.16%
2,000 Advanced Fibre
Communications, Inc.<F1> 80,125
1,500 CIENA Corp.<F1> 104,436
3,000 Metromedia Fiber Network, Inc.<F1> 139,875
42,857 Netro Corp.<F1><F3> 299,999
8,000 Premisys Communications, Inc.<F1> 199,000
1,250 Tekelec<F1> 55,938
--------
879,373
--------
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER POST-VENTURE FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
TELECOMMUNICATIONS -
SERVICES 6.65%
4,000 Com21, Inc.<F1> $ 85,000
14,368 Com21, Inc.<F1><F3> 274,788
3,000 Intermedia Communications Inc.<F1> 125,813
1,000 Level 3 Communications, Inc.<F1> 74,000
2,000 MediaOne Group Inc.<F1> 87,875
7,000 MetroNet Communications Corp.<F1> 197,750
4,000 Qwest Communication
International Inc.<F1> 139,500
6,000 Telegroup, Inc.<F1> 55,500
55 US West, Inc. 2,567
3,000 World Access, Inc.<F1> 90,000
----------
1,132,793
----------
TEXTILE - APPAREL
MANUFACTURING 0.79%
5,000 Nautica Enterprises, Inc.<F1> 134,062
----------
WASTE DISPOSAL 0.41%
2,300 Superior Services, Inc.<F1> 69,144
----------
Total Common Stocks
(cost $13,534,188) 15,026,651
----------
PRINCIPAL
AMOUNT
----------
U.S. TREASURY BILLS 5.87%
$1,049,000 U.S. Treasury Bills, 5/27/99 999,767
----------
Total U.S. Treasury Bills
(cost $999,767) 999,767
----------
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------
REPURCHASE AGREEMENTS 4.84%
$824,000 UMB Bank, n.a., 5.05%, dated
6/30/98, repurchase price
$824,114, maturing 7/1/98
(collateralized by U.S. Treasury
Notes, 6.875%, 7/31/99) $ 824,000
-----------
Total Repurchase Agreements
(cost $824,000) 824,000
SHORT-TERM INVESTMENTS 0.00% -----------
64 UMB Bank, n.a., Money
Market Fiduciary 64
-----------
Total Short-Term Investments
(cost $64) 64
-----------
Total Investments 98.94%
(cost $15,358,019) 16,850,482
Other Assets
less Liabilities 1.06% 181,028
-----------
NET ASSETS 100.00% $17,031,510
===========
<F1>Non-income producing
<F3>Purchased in a private placement transaction; resale to the public may
require registration or sale only to qualified institutional buyers.
Security is valued under procedures established by the Board of Directors.
See notes to financial statements.
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS
June 30, 1998
(Unaudited)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 62.20%
AGRICULTURAL OPERATIONS 0.58%
1,000 AgriBioTech, Inc.<F1> $ 27,687
--------
COMMERCIAL SERVICES -
MISCELLANEOUS 2.45%
750 Abacus Direct Corp.<F1> 38,953
1,000 AnswerThink Consulting
Group, Inc.<F1> 21,500
1,500 Boron, LePore & Associates, Inc.<F1> 57,000
--------
117,453
--------
COMMERCIAL SERVICES -
SCHOOLS 0.61%
300 Apollo Group, Inc.<F1> 9,919
1,250 Caliber Learning Network, Inc. 19,219
--------
29,138
--------
COMMERCIAL SERVICES -
SECURITY/SAFETY 0.68%
1,000 Check Point Software
Technologies Ltd.<F1> 32,750
--------
COMPUTERS - GRAPHICS 0.43%
500 Micromuse Inc.<F1> 20,406
--------
COMPUTERS - INTEGRATED
SYSTEMS 2.07%
3,000 Apex PC Solutions, Inc.<F1> 83,625
750 Peerless Systems Corp.<F1> 15,563
--------
99,188
--------
COMPUTERS - LOCAL
NETWORKS 2.50%
500 Ascend Communications, Inc.<F1> 24,781
500 Cisco Systems, Inc.<F1> 46,031
500 Citrix Systems, Inc.<F1> 34,187
500 Xylan Corp.<F1> 14,906
--------
119,905
--------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMPUTERS - MEMORY
DEVICES 3.06%
1,000 Advanced Digital
Information Corp.<F1> $ 14,250
1,250 EMC Corp.<F1> 56,016
900 Legato Systems, Inc.<F1> 35,100
1,000 VERITAS Software Corp.<F1> 41,375
--------
146,741
--------
COMPUTERS - MINI/MICRO 0.97%
500 Dell Computer Corp.<F1> 46,406
--------
COMPUTERS - RETAIL/
WHOLESALE 4.10%
11,000 CHS Electronics, Inc.<F1> 196,625
--------
COMPUTERS - SERVICES 1.69%
500 America Online, Inc.<F1> 53,000
1,000 Aris Corp.<F1> 28,000
--------
81,000
--------
COMPUTERS - SOFTWARE 7.72%
6,000 Avant! Corp.<F1> 148,500
500 CBT Group plc ADR<F1> 26,750
400 Compuware Corp.<F1> 20,450
1,150 HNC Software Inc.<F1> 46,934
600 J.D. Edwards & Co.<F1> 25,762
250 Microsoft Corp.<F1> 27,094
1,000 Netscape Communications Corp.<F1> 27,062
750 Saville Systems Ireland plc ADR<F1> 37,594
3,160 Unwired Planet<F1><F3> 10,144
--------
370,290
--------
COMPUTER SOFTWARE -
ENTERPRISE 1.28%
1,000 International Integration Inc.<F1> 17,250
1,500 Software AG Systems, Inc.<F1> 43,875
--------
61,125
--------
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
COMPUTER SOFTWARE -
MEDICAL 0.69%
4,500 OnHealth Network Co.<F1> $ 32,906
--------
COMPUTER SOFTWARE -
SECURITY 0.39%
500 ISS Group, Inc.<F1> 18,813
--------
ELECTRONICS - MISCELLANEOUS
COMPONENTS 2.28%
1,000 Aavid Thermal Technologies, Inc.<F1> 29,250
1,500 Alpha Industries, Inc.<F1> 22,406
1,000 Artisan Components, Inc.<F1> 13,500
1,000 RF Micro Devices, Inc.<F1> 10,875
2,250 Sawtek Inc.<F1> 33,188
--------
109,219
--------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 7.65%
1,000 Linear Technology Corp. 60,312
1,000 Maxim Integrated Products, Inc.<F1> 31,688
250 PMC-Sierra, Inc.<F1> 11,719
3,000 SDL, Inc.<F1> 71,625
3,500 SIPEX Corp.<F1> 75,250
11,666 Transmeta Corp.<F1><F3> 69,996
1,500 Vitesse Semiconductor Corp.<F1> 46,312
--------
366,902
--------
ENERGY - ALTERNATIVE SOURCES 0.56%
1,250 KTI, Inc.<F1> 27,031
--------
LEISURE - SERVICES 1.97%
1,000 Carnival Corp. 39,625
500 Royal Caribbean Cruises Ltd. 39,750
500 Steiner Leisure Ltd.<F1> 15,125
--------
94,500
--------
MEDICAL/DENTAL SUPPLIES 0.71%
250 STERIS Corp.<F1> 15,898
500 The Cooper Companies, Inc.<F1> 18,219
--------
34,117
--------
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
MEDICAL - INFORMATION
SERVICES 1.46%
750 HBO & Co. $ 26,438
500 IDX Systems Corp.<F1> 23,031
2,000 MECON, Inc.<F1> 20,750
--------
70,219
--------
MEDICAL - INSTRUMENTS 0.67%
4,000 IRIDEX Corp.<F1> 32,000
--------
MEDICAL - PRODUCTS 2.52%
1,500 PAREXEL International Corp.<F1> 54,563
3,000 Pharmaceutical Product
Development, Inc.<F1> 66,000
--------
120,563
--------
MULTI INDUSTRY 0.52%
500 Veritas DGC Inc.<F1> 24,969
--------
OIL & GAS 1.51%
1,000 Cal Dive International, Inc.<F1> 27,563
3,300 OMNI Energy Services Corp.<F1> 44,962
--------
72,525
--------
OIL & GAS - FIELD SERVICES 1.72%
1,500 Eagle Geophysical, Inc.<F1> 15,750
2,500 Horizon Offshore, Inc.<F1> 24,531
7,000 TransCoastal Marine Services, Inc.<F1> 42,219
--------
82,500
--------
POLLUTION CONTROL -
EQUIPMENT 0.31%
3,000 Flanders Corp.<F1> 14,625
--------
POLLUTION CONTROL - SERVICES 0.63%
1,250 Tetra Tech, Inc.<F1> 30,313
--------
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
VAN WAGONER TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS (cont'd.)
NUMBER
OF SHARES VALUE
- -----------------------------------------------------------------------
RETAIL - MAIL ORDER/DIRECT 0.40%
5,120 Garden Escape<F1><F3> $ 19,251
----------
TELECOMMUNICATIONS -
EQUIPMENT 5.66%
1,500 Advanced Fibre
Communications, Inc.<F1> 60,094
250 CIENA Corp.<F1> 17,406
1,000 Ericsson LM ADR 28,625
1,000 Galileo Corp.<F1> 11,875
250 Lucent Technologies Inc. 20,797
500 Metromedia Fiber Network, Inc.<F1> 23,313
250 Nokia Ab ADR 18,141
2,500 Premisys Communications, Inc.<F1> 62,187
250 Tekelec<F1> 11,187
250 Tellabs, Inc.<F1> 17,906
----------
271,531
----------
TELECOMMUNICATIONS -
SERVICES 4.41%
3,000 Com21, Inc.<F1> 63,750
1,000 Intermedia Communications Inc.<F1> 41,938
250 Level 3 Communications, Inc.<F1> 18,500
1,000 MetroNet Communications Corp.<F1> 28,250
1,000 Qwest Communication
International Inc.<F1> 34,875
1,000 Telegroup, Inc.<F1> 9,250
500 World Access, Inc.<F1> 15,000
----------
211,563
----------
Total Common Stocks
(cost $2,687,067) 2,982,261
----------
PRINCIPAL
AMOUNT
-----------
U.S. TREASURY BILLS 26.06%
$1,311,000 U.S. Treasury Bills, 5/27/99 1,249,470
----------
Total U.S. Treasury Bills
(cost $1,249,470) 1,249,470
----------
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------
REPURCHASE AGREEMENTS 12.87%
$617,000 UMB Bank, n.a., 5.05%, dated
6/30/98, repurchase price
$617,085, maturing 7/1/98
(collateralized by U.S. Treasury
Notes, 6.875%, 7/31/99) $ 617,000
----------
Total Repurchase Agreements
(cost $617,000) 617,000
----------
SHORT-TERM INVESTMENTS 0.01%
394 UMB Bank, n.a., Money
Market Fiduciary 394
----------
Total Short-Term Investments
(cost $394) 394
----------
Total Investments 101.14%
(cost $4,553,931) 4,849,125
Liabilities
less Other Assets (1.14)% (54,599)
----------
NET ASSETS 100.00% $4,794,526
==========
<F1>Non-income producing
<F3>Purchased in a private placement transaction; resale to the public may
require registration or sale only to qualified institutional buyers.
Security is valued under procedures established by the Board of Directors.
See notes to financial statements.
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
EMERGING MICRO-CAP MID-CAP POST-VENTURE TECHNOLOGY
GROWTH FUND FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
ASSETS:
Investments, at value:
Nonaffiliated issuers (cost $196,666,188, $41,460,380,
$42,395,374, $14,534,019 and $3,936,931, respectively) $209,280,995 $43,981,951 $48,641,729 $16,026,482 $4,232,125
Affiliated issuers (cost $17,649,715, $0, $0,
$0 and $0 respectively) 22,970,475 - - - _
Repurchase agreements (cost $891,000, $4,235,000,
$4,456,000, $824,000 and $617,000, respectively) 891,000 4,235,000 4,456,000 824,000 617,000
Deposit at brokers for short sales 1,731,580 - - - _
Receivable from brokers for proceeds on securities sold short 2,614,226 - - - _
Receivable for investments sold 40,023,927 4,278,659 1,561,260 749,214 249,328
Interest and dividends receivable 8,375 2,309 9,498 621 389
Receivable from investment adviser 20,077 23,031 1,678 16,623 12,310
Organizational expenses, net of accumulated amortization 18,375 18,375 18,375 - _
Prepaid expenses and other assets 45,735 17,864 17,862 3,539 18,868
------------ ----------- ----------- ----------- ----------
Total Assets 277,604,765 52,557,189 54,706,402 17,620,479 5,130,020
------------ ----------- ----------- ----------- ----------
LIABILITIES:
Payable for investments purchased 43,244,839 349,458 676,169 508,655 316,608
Payable to custodian 9,032,778 - - - _
Accrued investment advisory fees 239,321 65,109 43,147 20,818 4,725
Accrued distribution fees 285,893 64,329 64,398 32,140 2,390
Securities sold short, at value (proceeds of $1,947,373) 2,392,813 - - - _
Options written, at value (premiums received $101,285) 49,050 - - - _
Accrued expenses and other liabilities 229,587 70,527 64,836 27,356 11,771
------------ ----------- ----------- ----------- ----------
Total Liabilities 55,474,281 549,423 848,550 588,969 335,494
------------ ----------- ----------- ----------- ----------
NET ASSETS $222,130,484 $52,007,766 $53,857,852 $17,031,510 $4,794,526
============ =========== =========== =========== ==========
NET ASSETS CONSIST OF:
Capital stock $ 2,155 $ 499 $ 472 $ 161 $ 34
Paid-in-capital 383,790,167 76,632,076 70,313,113 16,952,977 4,094,027
Accumulated net realized gain (loss) on investments (179,204,200) (27,146,380) (22,702,088) (1,414,091) 405,271
Net unrealized appreciation on investments 17,542,362 2,521,571 6,246,355 1,492,463 295,194
------------ ----------- ----------- ----------- ----------
Net Assets $222,130,484 $52,007,766 $53,857,852 $17,031,510 $4,794,526
============ =========== =========== =========== ==========
CAPITAL STOCK, $0.0001 PAR VALUE
Authorized 200,000,000 100,000,000 100,000,000 100,000,000 100,000,000
Issued and outstanding 21,551,305 4,987,386 4,717,133 1,612,320 339,830
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING
PRICE PER SHARE (NET ASSETS/SHARES OUTSTANDING) $10.31 $10.43 $11.42 $10.56 $14.11
====== ====== ====== ====== ======
</TABLE>
See notes to financial statements.
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
EMERGING MICRO-CAP MID-CAP POST-VENTURE TECHNOLOGY
GROWTH FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 515,548 $ 220,974 $ 257,026 $ 64,077 $ 27,479
Dividends 46,135 7,686 30,783 180 660
----------- ---------- ---------- ---------- --------
Total Investment Income 561,683 228,660 287,809 64,257 28,139
----------- ---------- ---------- ---------- --------
EXPENSES:
Investment advisory fees 1,684,005 463,809 307,169 136,245 19,029
Transfer agent fees and expenses 532,027 157,214 155,820 36,975 17,515
Distribution fees 336,801 77,302 76,792 22,708 3,806
Fund accounting and administration fees 114,849 51,229 51,007 30,580 30,580
Custody fees 49,591 10,918 8,922 9,336 9,337
State registration fees 41,549 15,872 16,096 14,729 1,176
Printing and postage expenses 38,917 8,854 8,895 2,715 3,490
Professional fees 9,556 9,556 9,556 9,533 12,407
Amortization of organizational costs 3,641 3,641 3,641 - _
Directors' fees and expenses 1,690 1,690 1,690 1,690 1,958
Miscellaneous 11,535 3,770 3,471 2,736 1,368
----------- ---------- ---------- ---------- --------
Total expenses before waivers and reimbursements 2,824,161 803,855 643,059 267,247 100,666
Less: Waivers and reimbursements of expenses (197,113) (200,903) (44,080) (90,128) (70,981)
----------- ---------- ---------- ---------- --------
Net Expenses 2,627,048 602,952 598,979 177,119 29,685
----------- ---------- ---------- ---------- --------
NET INVESTMENT LOSS (2,065,365) (374,292) (311,170) (112,862) (1,546)
----------- ---------- ---------- ---------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments (23,989,510) (3,675,314) (4,088,114) 1,618,907 433,647
Net realized loss on short positions (886,384) - - (53,661) (26,830)
Net realized gain on options written 236,836 35,449 4,900 17,724 _
Net change in unrealized appreciation and
depreciation on investments 33,039,778 7,167,477 8,298,963 1,900,806 295,194
----------- ---------- ---------- ---------- --------
Net Gain on Investments 8,400,720 3,527,612 4,215,749 3,483,776 702,011
----------- ---------- ---------- ---------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,335,355 $3,153,320 $3,904,579 $3,370,914 $700,465
=========== ========== ========== ========== ========
</TABLE>
See notes to financial statements.
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EMERGING GROWTH FUND MICRO-CAP FUND
--------------------------------- ---------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
JUNE 30, 1998 ENDED JUNE 30, 1998 ENDED
(UNAUDITED) DEC. 31, 1997 (UNAUDITED) DEC. 31, 1997
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
OPERATIONS:
Net investment loss $ (2,065,365) $ (7,822,156) $ (374,292) $ (1,871,886)
Net realized gain (loss) on investments (23,989,510) (35,738,255) (3,675,314) (3,711,351)
Net realized gain (loss) on short positions (886,384) - - 496,589
Net realized gain on options written 236,836 - 35,449 _
-------------- ------------- ------------- --------------
Net change in unrealized appreciation and
depreciation on investments 33,039,778 (53,549,197) 7,167,477 (17,420,883)
-------------- ------------- ------------- --------------
Net increase (decrease) in net assets
resulting from operations 6,335,355 (97,109,608) 3,153,320 (22,507,531)
-------------- ------------- ------------- --------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 51,667,845 226,434,056 13,768,034 96,555,054
Redemption of shares (149,089,408) (454,267,232) (36,780,776) (142,878,789)
-------------- ------------- ------------- --------------
Net increase (decrease) from share transactions (97,421,563) (227,833,176) (23,012,742) (46,323,735)
-------------- ------------- ------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (91,086,208) (324,942,784) (19,859,422) (68,831,266)
NET ASSETS:
Beginning of period 313,216,692 638,159,476 71,867,188 140,698,454
-------------- ------------- ------------- --------------
End of period $222,130,484 $313,216,692 $52,007,766 $ 71,867,188
============== ============= ============= ==============
TRANSACTIONS IN SHARES:
Shares sold 5,022,576 19,199,101 1,366,669 8,080,869
Shares redeemed (14,329,907) (38,615,725) (3,573,329) (12,190,073)
-------------- ------------- ------------- --------------
Net increase (decrease) (9,307,331) (19,416,624) (2,206,660) (4,109,204)
-------------- ------------- ------------- --------------
MID-CAP FUND POST-VENTURE FUND TECHNOLOGY FUND<F1>
------------------------------- --------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
JUNE 30, 1998 ENDED JUNE 30, 1998 ENDED JUNE 30, 1998
(UNAUDITED) DEC. 31, 1997 (UNAUDITED) DEC. 31, 1997 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
OPERATIONS:
Net investment loss $ (311,170) $ (1,520,786) $ (112,862) $ (357,869) $ (1,546)
Net realized gain (loss) on investments (4,088,114) (3,910,862) 1,618,907 (3,246,420) 433,647
Net realized gain (loss) on short positions - - (53,661) 249,359 (26,830)
Net realized gain on options written 4,900 - 17,724 - _
------------- -------------- ------------- ------------- -------------
Net change in unrealized appreciation and
depreciation on investments 8,298,963 (9,456,465) 1,900,806 (408,343) 295,194
------------- -------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations 3,904,579 (14,888,113) 3,370,914 (3,763,273) 700,465
------------- -------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 9,200,813 92,514,890 7,733,518 54,243,643 7,230,508
Redemption of shares (33,084,959) (141,529,840) (14,541,349) (30,011,943) (3,136,447)
------------- -------------- ------------- ------------- -------------
Net increase (decrease) from share transactions (23,884,146) (49,014,950) (6,807,831) 24,231,700 4,094,061
------------- -------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (19,979,567) (63,903,063) (3,436,917) 20,468,427 4,794,526
NET ASSETS:
Beginning of period 73,837,419 137,740,482 20,468,427 - _
------------- -------------- ------------- ------------- -------------
End of period $53,857,852 $ 73,837,419 $17,031,510 $20,468,427 $ 4,794,526
============= ============== ============= ============= =============
TRANSACTIONS IN SHARES:
Shares sold 877,582 7,469,170 818,256 5,409,119 568,744
Shares redeemed (3,082,683) (11,661,886) (1,537,177) (3,077,878) (228,914)
------------- -------------- ------------- ------------- -------------
Net increase (decrease) (2,205,101) (4,192,716) (718,921) 2,331,241 339,830
------------- -------------- ------------- ------------- -------------
</TABLE>
<F1> Commenced operations after the close of business on December 31, 1997.
See notes to financial statements.
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a Fund share outstanding throughout the period
<TABLE>
<CAPTION>
EMERGING GROWTH FUND MICRO-CAP FUND
------------------------------------------- -----------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR YEAR ENDED YEAR YEAR
JUNE 30, 1998 ENDED ENDED JUNE 30, 1998 ENDED ENDED
(UNAUDITED) DEC. 31, 1997 DEC. 31, 1996 (UNAUDITED) DEC. 31, 1997 DEC. 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.15 $12.69 $10.00 $9.99 $12.45 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss (0.10) (0.25) (0.15) (0.08) (0.26) (0.09)
Net realized and unrealized gains
(losses) on investments 0.26 (2.29) 2.84 0.52 (2.20) 2.54<F2>
------ ------ ------ ------ ------ ------
Total from investment operations 0.16 (2.54) 2.69 0.44 (2.46) 2.45
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $10.31 $10.15 $12.69 $10.43 $9.99 $12.45
====== ====== ====== ====== ====== ======
Total Return<F3> 1.58% (20.02)% 26.90% 4.40% (19.76)% 24.50%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $222,130 $313,217 $638,159 $52,008 $71,867 $140,698
Ratio of expenses to average net assets -
net of waivers, and reimbursements<F4> 1.95% 1.88% 1.95% 1.95% 1.95% 1.95%
Ratio of net investment loss to
average net assets - net of waivers
and reimbursements<F4> (1.53)% (1.68)% (1.49)% (1.21)% (1.72)% (1.04)%
Ratio of net expenses to average
net assets - before waivers
and reimbursements<F4> 2.10% 1.88% 1.98% 2.60% 2.32% 2.55%
Ratio of net investment loss to
average net assets - before waivers
and reimbursements<F4> (1.68)% (1.68)% (1.52)% (1.86)% (2.09)% (1.64)%
Portfolio turnover rate<F3> 282% 333% 159% 178% 232% 153%
MID-CAP FUND POST-VENTURE FUND TECHNOLOGY FUND<F1>
------------------------------------------- ----------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR YEAR ENDED YEAR ENDED
JUNE 30, 1998 ENDED ENDED JUNE 30, 1998 ENDED JUNE 30, 1998
(UNAUDITED) DEC. 31, 1997 DEC. 31, 1996 (UNAUDITED) DEC. 31, 1997 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $10.67 $12.39 $10.00 $8.78 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss (0.07) (0.22) (0.09) (0.07) (0.15) _
Net realized and unrealized gains
(losses) on investments 0.82 (1.50) 2.48<F2> 1.85 (1.07) 4.11
------- ------- ------- ------ ------- -------
Total from investment operations 0.75 (1.72) 2.39 1.78 (1.22) 4.11
------- ------- ------- ------ ------- -------
Net Asset Value, End of Period $11.42 $10.67 $12.39 $10.56 $8.78 $14.11
======= ======= ======= ====== ======= =======
Total Return<F3> 7.03% (13.88)% 23.90% 20.27% (12.20)% 41.10%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $53,858 $73,837 $137,740 $17,032 $20,468 $4,795
Ratio of expenses to average net assets -
net of waivers and reimbursements<F4> 1.95% 1.80% 1.95% 1.95% 1.95% 1.95%
Ratio of net investment loss to
average net assets - net of waivers
and reimbursements<F4> (1.01)% (1.42)% (1.16)% (1.24)% (1.39)% (0.10)%
Ratio of net expenses to average
net assets - before waivers
and reimbursements<F4> 2.09% 1.80% 2.05% 2.94% 2.69% 6.61%
Ratio of net investment loss to
average net assets - before waivers
and reimbursements<F4> (1.15)% (1.42)% (1.26)% (2.23)% (2.13)% (4.76)%
Portfolio turnover rate<F3> 278% 304% 173% 317% 317% 600%
</TABLE>
<F1>Commenced operations after the close of business on December 31, 1997.
<F2>The amount shown may not correlate with the aggregate gains and losses of
portfolio securities due to the timing of sales and
redemptions of Fund shares.
<F3> Not annualized
<F4>Annualized for periods less than a full year
See notes to financial statements.
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
1.ORGANIZATION
Van Wagoner Funds, Inc. (the "Company") was organized on October 18, 1995 as
a Maryland corporation and is registered under the Investment Company Act of
1940 (the "1940 Act") as an open-end management investment company. The
Emerging Growth Fund, Micro-Cap Fund, Mid-Cap Fund, Post-Venture Fund and
Technology Fund (collectively "the Funds") are separate, diversified
investment portfolios of Van Wagoner Funds, Inc.
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. The
financial statements have been prepared in accordance with generally accepted
accounting principles ("GAAP") which permit management to make certain
estimates and assumptions at the date of the financial statements.
(a) INVESTMENT VALUATION - A security traded on a recognized stock exchange
is valued at the last sale price. If no sale is reported, the most
current bid price will be used. All other securities for which over-the-
counter market quotations are readily available are valued at the most
current closing price. Debt securities which will mature in more than 60
days are valued at prices furnished by a pricing service. Securities
which will mature in 60 days or less are valued at amortized cost, which
approximates market value. Any securities for which market quotations are
not readily available are valued at their fair value as determined in
good faith by the Funds' investment adviser under the supervision of the
Board of Directors.
(b) REPURCHASE AGREEMENTS - During the term of a repurchase agreement, the
market value of the underlying collateral, including accrued interest, is
required to equal or exceed the market value of the repurchase agreement.
The underlying collateral for all repurchase agreements is held by the
Funds' custodian.
(c) ORGANIZATIONAL COSTS - Costs incurred by the Emerging Growth, Micro-Cap
and Mid-Cap Funds in connection with their organization, registration and
the initial public offering of shares have been deferred and will be
amortized over the period of benefit, but not to exceed five years. If
any of the original shares of a Fund are redeemed by any holder thereof
prior to the end of the amortization period, the redemption proceeds will
be reduced by the pro rata share of the unamortized expenses as of the
date of redemption. The pro rata share by which the proceeds are reduced
will be derived by dividing the number of original shares by the total
number of original shares outstanding at the time of redemption for the
Funds being redeemed.
VAN WAGONER FUNDS
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SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (cont'd.)
(d) EXPENSES - The Funds are charged for those expenses that are directly
attributable to each portfolio, such as advisory and custodian fees.
Expenses that are not directly attributable to a portfolio are typically
allocated among the portfolios in proportion to their respective net
assets.
(e) FEDERAL INCOME TAXES - Each Fund intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated
investment company and to make the requisite distributions of income to
its shareholders which will be sufficient to relieve it from all or
substantially all federal income taxes.
As of December 31, 1997, the Emerging Growth, Micro-Cap and Mid-Cap Funds
had federal income tax capital loss carryforwards of $121,173,497,
$21,632,657 and $12,145,972, respectively. The entire federal income tax
loss carryforward for each of these Funds expires between 2004 and 2005.
As of December 31, 1997, the Post-Venture Fund had a federal income tax
capital loss carryforward of $1,349,247 which expires in 2005. Net
realized gains and losses may differ for tax and financial statement
purposes primarily as a result of wash sales and differences in the
timing of the recognition of realized gains and losses.
(f) Restricted Securities - The Emerging Growth, Micro-Cap, Post-Venture and
Technology Funds own some securities which are unregistered and thus
restricted as to resale. These securities, with the exception of Com21,
Inc., are valued at their fair value, which at June 30, 1998 is equal to
cost. The restricted shares of Com21, Inc. held by the Emerging Growth,
Micro-Cap and Post-Venture Funds are currently valued at a discount to
the market price of the equivalent unrestricted security. Where future
disposition of these securities requires registration under the
Securities Act of 1933, the Funds have the right to include these
securities in such registration, generally without cost to the Funds. The
Funds have no right to require registration of unregistered securities.
The Emerging Growth, Micro-Cap, Post-Venture and Technology Funds had
restricted securities with an aggregate market value of $17,514,980,
$3,907,496, $1,139,883 and $99,391, respectively, representing 7.9%,
7.5%, 6.7% and 2.1%, respectively, of the net assets of each of the
Funds.
(g) Options Contracts - The Funds purchase put options to hedge portfolio
investments. Premiums paid for option contracts purchased are included in
the Statements of Assets and Liabilities as an asset. Option contracts
are valued at the last sales price reported on the date of valuation. If
no sale is reported, the option contract purchased is valued at the
average of the current bid and asked price reported on the day of
valuation. When option contracts expire or are closed,
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (cont'd.)
realized gains or losses are recognized without regard to any unrealized
gains or losses on the underlying securities.
The Funds may also write covered call options to hedge portfolio
investments. When a Fund sells an option, an amount equal to the premium
received by the Fund is included in the Statement of Assets and
Liabilities as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current value
of the option written. By writing an option, a Fund may become obligated
during the term of the option to deliver or purchase the securities
underlying the option at the exercise price if the option is exercised.
Option contracts are valued at the last sales price reported on the date
of valuation. If no sale is reported, the option contract written is
valued at the average of the current bid and asked price reported on the
day of valuation. When an option expires on its stipulated expiration
date or a Fund enters into a closing purchase transaction, the Fund
realizes a gain or loss if the cost of the closing purchase transaction
differs from the premium received when the option was sold without regard
to any unrealized gain or loss on the underlying security, and the
liability related to such option is eliminated. When an option is
exercised, the premium originally received decreases the cost basis of
the security (or increases the proceeds on a sale of the security), and
the Fund realizes a gain or loss from the sale of the underlying
security.
(h) DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net investment income and
net realized capital gains, if any, will be declared and paid at least
annually. Distributions to shareholders are recorded on the ex-dividend
date. The Fund may periodically make reclassifications among certain of
its capital accounts as a result of the timing and characterization of
certain income and capital gains or losses determined in accordance with
federal income tax regulations, which may differ from GAAP.
(i) OTHER - Investment transactions are accounted for on a trade date basis.
Each Fund determines the gain or loss realized from the investment
transactions by comparing the original cost of the security lot sold with
the net sale proceeds. Dividend income is recognized on the ex-dividend
date and interest income is recognized on an accrual basis.
3.INVESTMENT ADVISORY AGREEMENT
Each Fund has an agreement with Van Wagoner Capital Management, Inc. (the
"Adviser") to furnish investment advisory services to the Funds. Under the
terms of each agreement, the Adviser is compensated at the following
percentage of average daily net assets for each Fund: 1.25% for the Emerging
VAN WAGONER FUNDS
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SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (cont'd.)
Growth Fund, 1.50% for the Micro-Cap Fund, 1.00% for the Mid-Cap Fund, 1.50%
for the Post-Venture Fund and 1.25% for the Technology Fund. The Adviser has
agreed to voluntarily reduce fees for expenses (exclusive of brokerage,
interest, taxes and extraordinary expenses) that exceed 1.95% for each Fund
until January 1, 1999. Expenses of $197,113, $200,903, $44,080, $90,128 and
$70,981 were waived in the Emerging Growth, Micro-Cap, Mid-Cap, Post-Venture
and Technology Funds, respectively.
4.SERVICE AND DISTRIBUTION PLAN
The Funds have adopted a Service and Distribution Plan (the "Plan") pursuant
to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds
in connection with the distribution of their shares at an annual rate, as
determined from time to time by the Board of Directors, of up to 0.25% of a
Fund's average daily net assets.
5.INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the six months ended June 30, 1998 were as
follows:
PURCHASES SALES
---------------------------------------------------------------------------
EMERGING
GROWTH FUND $724,669,011 $882,674,610
MICRO-CAP FUND 96,571,851 125,646,405
MID-CAP FUND 148,398,403 172,764,332
POST-VENTURE FUND 52,052,317 59,728,249
TECHNOLOGY FUND 13,635,559 11,466,496
For the six months ended June 30, 1998, there were no purchases or sales of
long-term U.S. government securities.
The cost of securities on an adjusted basis for the Emerging Growth Fund,
Micro-Cap Fund, Mid-Cap Fund, Post-Venture Fund and Technology Fund is
$215,206,903, $45,695,380, $46,851,374, $15,755,600 and $4,576,145,
respectively. At June 30, 1998, gross unrealized appreciation and
depreciation on investments for federal income tax purposes were as follows:
NET
UNREALIZED
APPRECIATION
UNREALIZED (UNREALIZED ON
APPRECIATION DEPRECIATION) INVESTMENTS
---------------------------------------------------------------------------
EMERGING
GROWTH
FUND $26,857,025 $(8,921,458) $17,935,567
MICRO-CAP
FUND $5,943,335 $(3,421,764) $2,521,571
MID-CAP
FUND $7,231,383 $(985,028) $6,246,355
POST-VENTURE
FUND $2,250,191 $(1,155,309) $1,094,882
TECHNOLOGY
FUND $389,046 $(116,066) $272,980
VAN WAGONER FUNDS
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (cont'd.)
6.OPTIONS CONTRACTS WRITTEN
The premium amount and the number of options contracts written during the six
months ended June 30, 1998 were as follows:
PREMIUM NUMBER OF
AMOUNT CONTRACTS
- ------------------------------------------------------
EMERGING GROWTH FUND
Options outstanding at
December 31, 1997 - _
Options written $ 538,585 4,656
Options closed (163,935) (1,494)
Options exercised (422) (6)
Options expired (272,943) (2,175)
--------- ---------
Options outstanding at
June 30, 1998 $ 101,285 981
========= =========
MICRO-CAP FUND
Options outstanding at
December 31, 1997 - _
Options written $ 35,449 300
Options closed - _
Options exercised - _
Options expired (35,449) (300)
--------- ---------
Options outstanding at
June 30, 1998 $ - _
========= =========
PREMIUM NUMBER OF
AMOUNT CONTRACTS
- ------------------------------------------------------
MID-CAP FUND
Options outstanding at
December 31, 1997 - _
Options written $ 4,900 50
Options closed - _
Options exercised - _
Options expired (4,900) (50)
--------- ---------
Options outstanding at
June 30, 1998 $ - _
========= =========
POST-VENTURE FUND
Options outstanding at
December 31, 1997 - _
Options written $ 17,724 150
Options closed - _
Options exercised - _
Options expired (17,724) (150)
========= =========
Options outstanding at
June 30, 1998 $ - _
========= =========
7.TRANSACTIONS WITH AFFILIATED COMPANIES
An affiliated company is a company in which a Fund has ownership of at least
5% of the voting securities. Companies which are affiliates of each Fund are
as follows:
<TABLE>
<CAPTION>
AMOUNT OF
AMOUNT OF LOSS
DIVIDENDS REALIZED
SHARE ACTIVITY CREDITED ON SALE
-----------------------------------------------------
BALANCE PURCHASES/ SALES/ BALANCE TO INCOME OF SHARES
SECURITY NAME 12/31/97 ADDITIONS REDUCTIONS 6/30/98 IN 1998 IN 1998
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C>
EMERGING GROWTH FUND
Avant! Corp.<F1> 1,193,268 275,940 541,108 928,100 - $(6,742,704)
========= ============
<F1> Non-income producing
</TABLE>
P.O. Box 1628
Milwaukee, WI 53201-1628
(logo)
VAN WAGONER
-----
FUNDS
SEMI-ANNUAL REPORT
1-800-228-2121
www.vanwagoner.com
ADDRESS SERVICE REQUESTED
---------------------
This is your
Semi-Annual Report
for 1998. Please keep
it in your files for
future reference.
---------------------
VW-402-0898
