VanWagonerFunds
Semi-Annual Report
June 30, 1999
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VAN WAGONER FUNDS SEMI-ANNUAL REPORT
DEAR FELLOW SHAREHOLDERS: JUNE 30, 1999
- --------------------------------------------------------------------------------
In each of the last two quarters the Van Wagoner Funds have turned in impressive
results, outpacing their peers as well as major indices like the Russell 2000,
the S&P 500R Index and Nasdaq Industrial Index.<F1> In fact, for the six-month
period ended June 30, 1999 4 out of 5 Funds were ranked in the top 1% of their
respective peer groups according to Lipper Analytical Services.<F2> The
performance numbers are on pages 4-6.
I'd like to take a look at what's been driving your Funds' performance-and tell
you why we're bullish on emerging growth stocks in the second half of 1999 as
well as long-term.
The U.S. economy has been cooperating, of course, with consistent growth and low
inflation. Interest rates are stable, and the Fed seems inclined to keep them
that way. And small-cap stocks have come out of hibernation, with the market
willing to reward companies with strong fundamentals.
Even so, not all small-cap funds have enjoyed the performance you've seen with
Van Wagoner Funds. We believe our focus on emerging growth companies-the
innovative, growing entrepreneurs who drive our economy-sets us apart. Business
has been good for the companies we hold (even when small-caps were out of
favor), and we expect it to continue to be good for years to come. By sticking
to our discipline, seeking out the best and the brightest emerging American
companies, we believe we can reward investors with long-term growth.
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While we concentrate on finding fundamentally strong innovative companies, we
also pay close attention to how market valuations affect our holdings. For
example, several of our technology stocks enjoyed a terrific run through April.
But as valuations stretched beyond what we consider reasonable, and with summer
traditionally a slow time for tech stocks, we trimmed back, taking a profit to
reinvest in opportunities we found in energy and health care. We believe this
careful monitoring, combined with our intensive research, will continue to drive
your Funds' performance.
Here's a look at our strategies, sector-by-sector.
- - INTERNET While Internet stocks rallied in April, and the market continues to
rise, leaders like Yahoo!, Amazon.com and AOL remain below their previous peaks.
We prefer to emphasize computer networking companies, which we believe will
benefit from the Internet's continued growth-for example, Copper Mountain, which
supplies equipment for telecom carriers racing to offer high-speed Internet
access. We also invest in companies that create web site content, such as
OnHealth Network and iVillage, both of which cover issues important to
women.<F3>
- - ENERGY In February we began to take a small position in select energy stocks,
and we increased the weighting through May. If current supply/demand conditions
hold, we expect to see more spending later in the year. That would benefit the
service companies we invest in, such as Dril-Quip, whose
VAN WAGONER FUNDS SEMI-ANNUAL REPORT
high-tech equipment makes drilling more efficient, and Cal Dive, which provides
applied technology for deep-water drilling.<F3>
- - HEALTH CARE April saw us reinvest technology profits in health care, where
many stocks in the sector hit three-month lows due to fears of government budget
cuts and regulatory change. We hold service companies whose fundamentals we
consider strong, such as Province Healthcare, specializing in turning around
struggling rural hospitals. We also invest in product companies like Xomed,
which makes surgical products for eye, ear and throat specialists.<F3>
- - SEMICONDUCTORS With Asia recovering, we believe Wall Street has rediscovered
semiconductor stocks, sending valuations way up. We're confident in the
fundamentals of companies like PMC-Sierra, which makes chips for high-speed
telecommunications between computers, and RF Micro Devices, whose chips enable
higher-performance cell phones. But we've trimmed holdings in light of current
prices and will watch for a dip to reload.<F3>
- - CONSUMER GOODS Early in the year we increased our holdings as consumer
spending remained strong. But the rise in interest rates began to hurt some
stocks in May, just as retail sales began to cool. Concerns about the Fed
wanting to slow domestic growth also led us to take money off the table. By
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the end of June our exposure in this sector was negligible, and we expect to
stay on the sidelines for the near term.
- - SOFTWARE We pared back in April, locking in gains as many Internet stocks had
huge moves. In May we began nibbling on enterprise software, and in June saw
significant benefit from our positions in Ariba, whose software helps large
companies automate supply procurement. We expect choppy performance in this
sector as Y2K looms, but we'll continue to invest in well-positioned companies
like Veritas.<F3>
- - TELECOMMUNICATIONS We continue to like this sector, favoring competitive local
exchange carriers such as NorthPoint Communications and Covad, both of which are
at the forefront of providing high-speed access for residential customers. As
with semiconductors, we're looking to add to our favorite names when the
opportunity arises.<F3>
Overall we believe today's economic environment is conducive to rewarding
emerging growth companies, as long as they're fundamentally sound. We believe
the markets will continue to be volatile and particularly so for emerging growth
stocks. We believe including emerging growth in a well-diversified portfolio
gives you the opportunity to participate in the most exciting investment areas
with the greatest potential for growth. Yes, it's volatile, but that's what
creates opportunity. And we believe investors who see potential early on have
the best opportunity to make money over time. Like you, we're all shareholders-
and we believe that investing in emerging growth stocks will reward us over
time. We look forward to continuing good results in 1999.
Sincerely,
/s/ Garrett R. Van Wagoner
Garrett R. Van Wagoner
<F1> Please see pages 4-6 for the total returns of the Funds and their
respective benchmarks, including the Russell 2000 Index, S&P 500/R Index and
Nasdaq Industrial Index.
Each of the five Van Wagoner Funds seeks capital appreciation. Although all of
the Funds are aggressive growth funds, they differ based on the market
capitalization of the stocks, and the sectors in which they invest. This will
affect their relative performance. For example, during 1998, the Technology
Fund's performance benefited from its policy to invest primarily in the
technology sectors. The Post-Venture, Micro-Cap and Mid-Cap Funds outperformed
the Emerging Growth Fund because they completed portfolio diversification
earlier in the year. The Post-Venture Fund also benefited because it did not
invest in stocks in the energy sector.
<F2> Rankings are based on total returns for the six month period ended 6/30/99
as compiled and published by Lipper Analytical Services, Inc. For the six month,
one year and three year periods ended 6/30/99 the Emerging Growth Fund was 2nd
of 777, 3rd of 698 and 79th of 400 Funds in the Small-Cap Funds category; the
Micro-Cap Fund was 1st of 57, 1st of 54 and 10th of 26 Funds in the Micro-Cap
Funds category; the Mid-Cap Fund was 3rd of 420, 6th of 361 and 181st of 212
Funds in the Mid-Cap Funds category, respectively. For the six month and one
year period ended 6/30/99 the Post-Venture Fund was 3rd of 777 and 2nd of 698
Funds in the Small-Cap Funds category; and the Technology Fund was 5th of 98 and
4th of 89 Funds in the Science & Technology Funds category, respectively.
Inception dates for the Post-Venture and Technology Funds are after the close of
business on 12/31/96 and 12/31/97, respectively.
<F3> Holdings may change due to ongoing management. References to specific
investments should not be construed as a recommendation of the Funds or their
Adviser.
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VAN WAGONER FUNDS SEMI-ANNUAL REPORT
VAN WAGONER FUNDS PERFORMANCE
Emerging Growth Fund
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TOTAL RETURN For the periods ended 6/30/99
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YEAR-TO-DATE ONE YEAR AVERAGE ANNUAL SINCE INCEPTION
105.57% 118.53% 26.16%
This chart assumes an initial investment of $10,000 made after the close of
business on 12/31/95 (Inception date). Returns shown here and in the table are
based on net change in NAV. Performance figures reflect fee waivers in effect
and represent past performance which is no guarantee of future results. In the
absence of fee waivers, total return would be reduced. The investment return and
principal value of an investment in Van Wagoner Funds will fluctuate so that an
investor's shares in the Funds, when redeemed, may be worth more or less than
their original cost.
The Nasdaq Industrial Index is a capitalization-weighted index designed to
measure the performance of all Nasdaq stocks in the industrial sector. As of
December 31, 1998, this index included 2,866 companies, including agricultural,
mining, construction, manufacturing (electronic components), services and public
administration enterprises.
The Lipper SmallCap Funds Index includes the largest 30 funds in the group
which, by prospectus or portfolio practice, invest primarily in companies with
market capitalizations less than $1 billion at the time of purchase.
EMERGING GROWTH FUND NASDAQ INDUSTRIAL LIPPER SMALLCAP
--------------------- ------------------ ----------------
12/31/95 $10,000 $10,000 $10,000
12/31/96 $12,690 $11,557 $11,436
12/31/97 $10,150 $12,772 $13,153
12/31/98 $10,960 $13,694 $13,041
6/30/99 $22,530 $17,160 $14,270
Micro-Cap Fund
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TOTAL RETURN For the periods ended 6/30/99
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YEAR-TO-DATE ONE YEAR AVERAGE ANNUAL SINCE INCEPTION
77.43% 92.23% 22.02%
This chart assumes an initial investment of $10,000 made after the close of
business on 12/31/95 (Inception date). Returns shown here and in the table are
based on net change in NAV. Performance figures reflect fee waivers in effect
and represent past performance which is no guarantee of future results. In the
absence of fee waivers, total return would be reduced. The investment return and
principal value of an investment in Van Wagoner Funds will fluctuate so that an
investor's shares in the Funds, when redeemed, may be worth more or less than
their original cost.
The Russell 2000 is an index of the smallest 2000 companies in the Russell 3000
Index, as ranked by total market capitalization. The Russell 2000 Index is
widely regarded in the industry to accurately capture the universe of small-cap
stocks.
The Lipper MicroCap Funds Index includes the largest ten funds in the group
which, by prospectus or portfolio practice, invest primarily in companies with
market capitalizations less than $300 million at the time of purchase.
MICRO-CAP FUND RUSSELL 2000 LIPPER MICROCAP
--------------------- ------------------ ----------------
12/31/95 $10,000 $10,000 $10,000
12/31/96 $12,450 $11,649 $12,111
12/31/97 $ 9,990 $14,254 $14,427
12/31/98 $11,300 $13,891 $14,158
6/30/99 $20,050 $15,181 $15,672
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Mid-Cap Fund
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TOTAL RETURN For the periods ended 6/30/99
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YEAR-TO-DATE ONE YEAR AVERAGE ANNUAL SINCE INCEPTION
49.96% 63.22% 19.50%
This chart assumes an initial investment of $10,000 made after the close of
business on 12/31/95 (Inception date). Returns shown here and in the table are
based on net change in NAV. Performance figures reflect fee waivers in effect
and represent past performance which is no guarantee of future results. In the
absence of fee waivers, total return would be reduced. The investment return and
principal value of an investment in Van Wagoner Funds will fluctuate so that an
investor's shares in the Funds, when redeemed, may be worth more or less than
their original cost.
The S&P MidCap 400 Index is a capitalization-weighted index that measures the
performance of the mid-range sector of the U.S. stock market where the median
market capitalization is approximately $700 million.
The Lipper MidCap Funds Index includes the largest 30 funds in the group which,
by prospectus or portfolio practice, invest primarily in companies with market
capitalizations less than $5 billion at the time of purchase.
MID-CAP FUND S&P MIDCAP 400 LIPPER MIDCAP
--------------------- ------------------ ----------------
12/31/95 $10,000 $10,000 $10,000
12/31/96 $12,390 $11,920 $11,630
12/31/97 $10,670 $15,765 $13,662
12/31/98 $12,430 $18,778 $15,563
6/30/99 $18,640 $20,069 $17,414
Post-Venture Fund
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TOTAL RETURN For the periods ended 6/30/99
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YEAR-TO-DATE ONE YEAR AVERAGE ANNUAL SINCE INCEPTION
94.54% 122.54% 40.82%
This chart assumes an initial investment of $10,000 made after the close of
business on 12/31/96 (Inception date). Returns shown here and in the table are
based on net change in NAV. Performance figures reflect fee waivers in effect
and represent past performance which is no guarantee of future results. In the
absence of fee waivers, total return would be reduced. The investment return and
principal value of an investment in Van Wagoner Funds will fluctuate so that an
investor's shares in the Funds, when redeemed, may be worth more or less than
their original cost.
The Nasdaq Industrial Index is a capitalization-weighted index designed to
measure the performance of all Nasdaq stocks in the industrial sector. As of
December 31, 1998, this index included 2,866 companies, including agricultural,
mining, construction, manufacturing (electronic components), services and public
administration enterprises.
The Lipper SmallCap Funds Index includes the largest 30 funds in the group
which, by prospectus or portfolio practice, invest primarily in companies with
market capitalizations less than $1 billion at the time of purchase.
POST-VENTURE FUND NASDAQ INDUSTRIAL LIPPER SMALLCAP
--------------------- ------------------ ----------------
12/31/96 $10,000 $10,000 $10,000
12/31/97 $ 8,780 $11,051 $11,502
12/31/98 $12,080 $11,849 $11,403
6/30/99 $23,500 $14,848 $12,478
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Van Wagoner Funds PERFORMANCE
Technology Fund
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TOTAL RETURN For the periods ended 6/30/99
- ------------------------------------------------------------
YEAR-TO-DATE ONE YEAR AVERAGE ANNUAL SINCE INCEPTION
90.82% 150.32% 132.46%
This chart assumes an initial investment of $10,000 made after the close of
business on 12/31/97 (Inception date). Returns shown here and in the table are
based on net change in NAV. Performance figures reflect fee waivers in effect
and represent past performance which is no guarantee of future results. In the
absence of fee waivers, total return would be reduced. The investment return and
principal value of an investment in Van Wagoner Funds will fluctuate so that an
investor's shares in the Funds, when re-deemed, may be worth more or less than
their original cost.
The Morgan Stanley High-Technology 35 Index is a broad-market technology
indicator dedicated exclusively to the electronics-based technology sector. The
35 stocks in the index include the most highly capitalized American companies
drawn from nine technology subsectors: computer services, design software,
server software, PC software and new media, networking and telecom equipment,
server hardware, PC hardware and peripherals, specialized systems and
semiconductors. Capitalization ranges from $1 billion to $54 billion.
The S&P 500/R Composite Stock Index is an unmanaged index of 500 selected common
stocks, most of which are listed on the New York Stock Exchange. The index is
heavily weighted toward stocks with large market capitalizations and represents
approximately two-thirds of the total market value of all domestic common
stocks.
The Lipper Science & Technology Funds Index includes the largest ten funds in
the group which, by prospectus or portfolio practice, invest 65% of their equity
portfolios in science and technology stocks.
MORGAN STANLEY LIPPER SCIENCE
TECHNOLOGY FUND HIGH-TECH S&P 500/R & TECH
--------------- -------------- --------- ----------------
12/31/97 $10,000 $10,000 $10,000 $10,000
12/31/98 $18,510 $19,569 $12,858 $14,694
6/30/99 $35,320 $25,963 $14,450 $18,712
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Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER EMERGING GROWTH FUND June 30, 1999 (Unaudited)
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NUMBER
OF SHARES VALUE
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COMMON AND PREFERRED STOCKS 87.41%
CHEMICALS - SPECIALTY 0.58%
81,250 ChiRex, Inc.<F1> $ 2,610,156
-----------
COMMERCIAL SERVICES -
BUSINESS 0.40%
247,239 InterDent, Inc.<F1> 1,807,935
-----------
COMMERCIAL SERVICES -
MISCELLANEOUS 2.75%
150,000 Administaff, Inc.<F1> 2,400,000
49,000 AnswerThink Consulting Group, Inc.<F1> 1,237,250
77,900 MedQuist Inc.<F1> 3,408,126
143,700 The Metzler Group, Inc.<F1> 3,969,713
30,000 Realty Information Group, Inc.<F1> 1,305,000
-----------
12,320,089
-----------
COMPUTER SOFTWARE -
EDUCATION 0.64%
265,000 Digital Chef, Inc.<F1><F3> 2,862,000
-----------
COMPUTER SOFTWARE -
ENTERPRISE 2.57%
175,400 Best Software, Inc.<F1> 2,828,325
175,500 Concur Technologies, Inc.<F1> 4,935,937
452,297 Interwoven, Inc.<F1><F3> 2,560,001
139,500 IntraNet Solutions, Inc.<F1> 1,177,031
-----------
11,501,294
-----------
COMPUTER SOFTWARE -
INTERNET 6.06%
1,150,000 Bluestone Software, Inc.<F1><F3> 3,128,000
37,000 Covad Communications Group<F1> 1,972,562
31,000 Exodus Communications, Inc.<F1> 3,718,062
28,000 F5 Networks, Inc.<F1> 1,148,000
391,812 iVillage, Inc.<F1><F5> 13,125,584
750,000 MaMaMedia, Inc.<F1><F2> 4,050,000
500 Netopia, Inc.<F1> 11,375
-----------
27,153,583
-----------
NUMBER
OF SHARES VALUE
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COMPUTER SOFTWARE -
MEDICAL 8.22%
3,466,350 OnHealth Network Co.<F1><F2> $36,829,969
-----------
COMPUTER SOFTWARE -
SECURITY 0.82%
45,000 ISS Group, Inc.<F1> 1,698,750
23,000 VeriSign, Inc.<F1> 1,983,750
-----------
3,682,500
-----------
COMPUTERS - GRAPHICS 0.67%
60,500 Micromuse, Inc.<F1> 3,017,438
-----------
COMPUTERS - INTEGRATED
SYSTEMS 1.44%
123,500 Apex PC Solutions, Inc.<F1> 2,531,750
181,000 Computer Network
Technology Corp.<F1> 3,914,125
-----------
6,445,875
-----------
COMPUTERS - LOCAL
NETWORKS 3.44%
346,500 ACT Networks, Inc.<F1> 5,912,156
17,500 Brocade Communications Systems<F1> 1,687,656
35,500 Citrix Systems, Inc.<F1> 2,005,750
28,500 Extreme Networks, Inc.<F1> 1,654,781
90,300 Interphase Corp.<F1> 2,076,900
65,500 Visual Networks, Inc.<F1> 2,096,000
-----------
15,433,243
-----------
COMPUTERS - MEMORY
DEVICES 0.64%
30,350 VERITAS Software Corp.<F1> 2,881,353
-----------
COMPUTERS - MINI/MICRO 0.12%
7,626 Sun Microsystems, Inc.<F1><F4> 525,241
-----------
COMPUTERS - RETAIL/
WHOLESALE 0.51%
20,625 Emulex Corp.<F1> 2,293,242
-----------
COMPUTERS - SERVICES 0.53%
84,125 TSI International Software Ltd.<F1> 2,387,047
-----------
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Van Wagoner Funds SCHEDULE OF INVESTMENTS
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER EMERGING GROWTH FUND (CONT'D.) June 30, 1999
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NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMPUTERS - SOFTWARE 12.75%
748,800 Ariba, Inc.<F1><F5> $37,866,816
84,000 Event411.com, Inc.<F1><F3> 2,520,000
51,000 Great Plains Software, Inc.<F1> 2,406,562
40,000 NEON Systems, Inc.<F1> 1,335,000
42,000 Persistence Software, Inc.<F1> 572,250
12,500 Phone.com, Inc.<F1> 700,000
158,447 Phone.com, Inc.<F1><F5> 7,281,844
330,750 Serena Software, Inc.<F1> 4,444,453
-----------
57,126,925
-----------
ELECTRONICS - LASER SYSTEMS/
COMPONENTS 0.27%
15,000 VISX, Inc.<F1> 1,187,812
-----------
ELECTRONICS - MISCELLANEOUS
COMPONENTS 0.72%
43,000 RF Micro Devices, Inc.<F1> 3,208,875
-----------
ELECTRONICS - SEMICONDUCTOR
EQUIPMENT 0.96%
648,648 Cobalt Networks, Inc.<F1><F3> 2,399,998
11,500 Uniphase Corp.<F1> 1,909,000
-----------
4,308,998
-----------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 2.70%
25,000 PMC-Sierra, Inc.<F1> 1,473,438
14,000 QLogic Corp.<F1> 1,848,000
29,500 SDL, Inc.<F1> 1,506,344
500,000 Transmeta Corp.<F1><F3> 3,000,000
54,937 TranSwitch Corp.<F1> 2,602,640
25,000 Vitesse Semiconductor Corp.<F1> 1,685,938
-----------
12,116,360
-----------
ENERGY - SERVICES 0.86%
100,000 Ensco International, Inc. 1,993,750
75,300 Nabors Industries, Inc.<F1> 1,840,144
-----------
3,833,894
-----------
INTERNET - E-COMMERCE 2.38%
118,500 eToys, Inc.<F1> 4,828,875
83,800 Scient Corp.<F1> 3,985,738
106,000 Stamps.com, Inc.<F1> 1,855,000
-----------
10,669,613
-----------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
INTERNET - NETWORKS 1.59%
5,000 Juniper Networks, Inc.<F1> $ 745,000
37,200 Starmedia Network, Inc.<F1> 2,385,450
50,875 Viant Corp.<F1> 1,780,625
47,700 WebTrends Corp.<F1> 2,200,162
-----------
7,111,237
-----------
MEDICAL - BIOMED/GENETICS 0.28%
35,050 Millennium Pharmaceuticals, Inc.<F1> 1,261,800
-----------
MEDICAL - ETHICAL DRUGS 0.96%
209,500 Anesta Corp.<F1> 4,281,656
-----------
MEDICAL - HOSPITALS 0.95%
217,550 Province Healthcare Co.<F1> 4,242,225
-----------
MEDICAL - INFORMATION
SERVICES 0.19%
113,800 Mecon, Inc.<F1> 853,500
-----------
MEDICAL - INSTRUMENTS 0.23%
49,300 ArthroCare Corp.<F1> 1,010,650
-----------
MEDICAL - OUTPATIENT/
HOME CARE 0.40%
70,000 Renal Care Group, Inc.<F1> 1,811,250
-----------
MEDICAL - PRODUCTS 3.01%
40,000 MiniMed, Inc.<F1> 3,077,500
118,000 Osteotech, Inc.<F1> 3,392,500
118,850 Pharmaceutical Product
Development, Inc.<F1> 3,253,520
37,500 ResMed, Inc.<F1> 1,244,531
51,500 Xomed Surgical Products, Inc.<F1> 2,507,406
-----------
13,475,457
-----------
MEDICAL - WHOLESALE/DRUG 1.05%
136,012 Priority Healthcare Corp.<F1> 4,692,414
-----------
METAL PROCESSING &
FABRICATION 0.84%
269,450 Maverick Tube Corp.<F1> 3,755,459
-----------
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VAN WAGONER EMERGING GROWTH FUND (CONT'D.) June 30, 1999
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
OIL & GAS 2.96%
178,000 Cal Dive International, Inc.<F1> $ 5,317,750
268,800 Global Industries Ltd.<F1> 3,444,000
140,000 Global Marine, Inc.<F1> 2,161,250
235,350 Patterson Energy, Inc.<F1> 2,324,082
-----------
13,247,082
-----------
OIL & GAS - DRILLING 4.03%
1,910,000 Grey Wolf, Inc.<F1> 4,775,000
2,805,000 Key Energy Services, Inc.<F1> 9,992,812
197,900 UTI Energy Corp.<F1> 3,277,719
-----------
18,045,531
-----------
OIL & GAS - EXPLORATION 0.40%
90,250 Basin Exploration, Inc.<F1> 1,810,642
-----------
OIL & GAS - FIELD SERVICES 0.59%
59,000 BJ Services Co.<F1> 1,736,812
118,500 Horizon Offshore, Inc.<F1> 918,375
-----------
2,655,187
-----------
OIL & GAS -
MACHINERY/EQUIPMENT 4.65%
104,000 Cooper Cameron Corp.<F1> 3,854,500
235,800 Dril-Quip, Inc.<F1> 5,408,662
242,000 National-Oilwell, Inc.<F1> 3,388,000
52,000 Smith International, Inc.<F1> 2,258,750
541,950 Varco International, Inc.<F1> 5,927,578
-----------
20,837,490
-----------
POLLUTION CONTROL - SERVICES 2.41%
470,250 Tetra Tech, Inc.<F1> 7,759,125
100,000 Waste Connections, Inc.<F1> 3,050,000
-----------
10,809,125
-----------
RESTAURANTS 0.36%
586,400 Famous Dave's of America, Inc.<F1><F2> 1,484,296
6,000 P.F. Chang's China Bistro, Inc.<F1> 129,750
-----------
1,614,046
-----------
RETAIL - MAIL ORDER/DIRECT 0.66%
278,291 Garden.com, Inc.<F1><F3> 1,591,825
56,250 Pacific Sunwear of California, Inc.<F1> 1,371,094
-----------
2,962,919
-----------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
RETAIL - RESTAURANTS 0.17%
49,000 Rubio's Restaurants, Inc.<F1> $ 756,438
-----------
TELECOMMUNICATIONS -
CELLULAR 0.66%
59,500 Affymetrix, Inc.<F1> 2,937,812
-----------
TELECOMMUNICATIONS -
EQUIPMENT 7.77%
78,750 Allegiance Telecom, Inc.<F1> 4,321,406
24,825 Aware, Inc.<F1> 1,145,053
3,575 Copper Mountain Networks, Inc.<F1> 276,169
139,355 Copper Mountain Networks, Inc.<F1><F5> 8,569,368
220,500 Digital Microwave Corp.<F1> 2,811,375
27,000 Metromedia Fiber Network, Inc.<F1> 970,312
625,000 Netro Corp.<F1><F3> 4,862,500
137,525 NorthPoint Communications
Group, Inc.<F1> 5,019,662
112,750 Powerwave Technologies, Inc.<F1> 3,636,187
1,600,000 Vertical Networks, Inc.<F1><F3> 3,200,000
-----------
34,812,032
-----------
TELECOMMUNICATIONS -
SERVICES 3.22%
526,800 Com21, Inc.<F1> 8,988,525
90,500 CTC Communications Corp.<F1> 1,764,750
258,000 e.spire Communications Corp.<F1> 2,725,125
36,000 MGC Communications, Inc.<F1> 936,000
-----------
14,414,400
-----------
TOTAL COMMON AND
PREFERRED STOCKS
(cost $261,268,458) 391,601,794
-----------
TOTAL INVESTMENTS 87.41%
(cost $261,268,458) 391,601,794
Other Assets less Liabilities 12.59% 56,412,140
-----------
NET ASSETS 100.00% $448,013,934
============
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Van Wagoner Funds SCHEDULE OF INVESTMENTS
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER EMERGING GROWTH FUND (CONT'D.) June 30, 1999
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
SECURITIES SOLD SHORT
83,600 BroadVision, Inc.<F1> $ 6,165,500
23,500 Critical Path, Inc.<F1> 1,299,844
30,750 Eclipsys Corp.<F1> 736,078
36,500 Gateway, Inc.<F1> 2,153,500
70,000 Net.B@nk, Inc.<F1> 2,660,000
17,500 New Era of Networks, Inc.<F1> 768,906
64,550 Next Card, Inc.<F1> 2,190,666
133,700 Terayon Communication
Systems, Inc.<F1> 7,470,487
61,600 Vignette Corp.<F1> 4,620,000
-----------
TOTAL SECURITIES SOLD SHORT
(proceeds $23,429,966) $28,064,981
===========
<F1>Non-income producing
<F2>Affiliated company - see Note 8
<F3>Preferred stock 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 approved by the Board of
Directors.
<F4>Shares held in escrow; can trade freely beginning in August 1999.
<F5>Security acquired in a private placement transaction; resale may be limited
due to certain restrictions. Security is valued under procedures approved by
the Board of Directors.
See notes to financial statements.
CALL TOLL-FREE 1-800-228-2121
VAN WAGONER MICRO-CAP FUND June 30, 1999 (Unaudited)
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMMON AND PREFERRED STOCKS 82.97%
CHEMICALS - SPECIALTY 0.98%
25,000 ChiRex, Inc.<F1> $ 803,125
-----------
COMMERCIAL SERVICES -
BUSINESS 0.92%
102,371 InterDent, Inc.<F1> 748,588
-----------
COMMERCIAL SERVICES -
MISCELLANEOUS 2.00%
10,000 Diamond Tech Partners, Inc.<F1> 223,750
14,250 The Metzler Group, Inc.<F1> 393,656
23,450 Realty Information Group, Inc.<F1> 1,020,075
-----------
1,637,481
-----------
COMPUTER SOFTWARE -
EDUCATION 0.59%
45,000 Digital Chef, Inc.<F1><F2> 486,000
-----------
COMPUTER SOFTWARE -
ENTERPRISE 3.38%
55,000 Best Software, Inc.<F1> 886,875
25,000 BindView Development Corp.<F1> 593,750
10,000 Catalyst International, Inc.<F1> 179,375
15,000 Concur Technologies, Inc.<F1> 421,875
6,000 IntraNet Solutions, Inc.<F1> 50,625
50,000 Lightbridge, Inc.<F1> 628,125
-----------
2,760,625
-----------
COMPUTER SOFTWARE -
INTERNET 7.21%
175,000 Bluestone Software, Inc.<F1><F2> 476,000
12,000 Exodus Communications, Inc.<F1> 1,439,250
99,415 iVillage, Inc.<F1><F4> 3,330,373
120,000 MaMaMedia, Inc.<F1><F2> 648,000
-----------
5,893,623
-----------
COMPUTER SOFTWARE -
MEDICAL 6.31%
485,400 OnHealth Network Co.<F1> 5,157,375
-----------
COMPUTERS - GRAPHICS 0.73%
12,000 Micromuse, Inc.<F1> 598,500
-----------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMPUTERS - INTEGRATED
SYSTEMS 1.57%
31,000 Apex PC Solutions, Inc.<F1> $ 635,500
30,000 Computer Network
Technology Corp.<F1> 648,750
-----------
1,284,250
-----------
COMPUTERS - LOCAL
NETWORKS 3.95%
55,000 ACT Networks, Inc.<F1> 938,437
25,000 Ancor Communications, Inc.<F1> 809,375
2,000 Brocade Communications Systems<F1> 192,875
35,000 Interphase Corp.<F1> 805,000
15,000 Visual Networks, Inc.<F1> 480,000
-----------
3,225,687
-----------
COMPUTERS -
MINI/MICRO 0.15%
1,734 Sun Microsystems, Inc.<F2> 119,429
-----------
COMPUTERS -
RETAIL/WHOLESALE 1.36%
10,000 Emulex Corp.<F1> 1,111,875
-----------
COMPUTERS - SERVICES 0.80%
23,000 TSI International Software Ltd.<F1> 652,625
-----------
COMPUTERS - SOFTWARE 14.16%
18,000 Active Voice Corp.<F1> 261,000
163,200 Ariba, Inc.<F1><F4> 8,253,024
13,000 Event411.com, Inc.<F1><F2> 390,000
6,400 Great Plains Software, Inc.<F1> 302,000
6,000 Persistence Software, Inc.<F1> 81,750
40,133 Phone.com, Inc.<F1><F3> 1,844,428
32,500 Serena Software, Inc.<F1> 436,719
-----------
11,568,921
-----------
DIVERSIFIED OPERATIONS 1.11%
20,000 Galileo Technology Ltd.<F1> 906,250
-----------
ELECTRICAL PRODUCTS 0.77%
25,000 Ault, Inc.<F1> 204,687
15,000 Universal Electronics, Inc.<F1> 420,938
-----------
625,625
-----------
HTTP://WWW.VANWAGONER.COM
Van Wagoner Funds SCHEDULE OF INVESTMENTS
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MICRO-CAP FUND (CONT'D.) June 30, 1999
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
ELECTRONICS - MISCELLANEOUS
COMPONENTS 1.54%
140,000 Interlink Electronics, Inc.<F1> $ 397,500
1,500 RF Micro Devices, Inc.<F1> 858,187
-----------
1,255,687
-----------
ELECTRONICS - SEMICONDUCTOR
EQUIPMENT 0.89%
101,351 Cobalt Networks, Inc.<F1><F2> 374,999
10,000 Cohu, Inc. 353,750
-----------
728,749
-----------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 3.79%
26,900 DSP Communications, Inc.<F1> 776,737
7,000 QLogic Corp.<F1> 924,000
115,000 Transmeta Corp.<F1><F2> 690,000
15,000 TranSwitch Corp.<F1> 710,625
-----------
3,101,362
-----------
INTERNET - E-COMMERCE 0.38%
18,000 Stamps.com, Inc.<F1> 315,000
-----------
INTERNET NETWORKS 1.63%
7,500 Viant Corp.<F1> 262,500
23,100 WebTrends Corp.<F1> 1,065,488
-----------
1,327,988
-----------
MEDICAL - BIOMED/GENETICS 0.32%
15,000 Cephalon, Inc.<F1> 260,625
-----------
MEDICAL - ETHICAL DRUGS 0.78%
31,000 Anesta Corp.<F1> 633,563
-----------
MEDICAL - HOSPITALS 0.38%
16,125 Province Healthcare Co.<F1> 314,437
-----------
MEDICAL - INFORMATION
SERVICES 0.70%
76,600 Mecon, Inc.<F1> 574,500
-----------
MEDICAL - INSTRUMENTS 1.58%
62,900 ArthroCare Corp.<F1> 1,289,450
-----------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
MEDICAL - OUTPATIENT/
HOME CARE 0.80%
70,000 LCA-Vision, Inc.<F1> $ 651,875
-----------
MEDICAL - PRODUCTS 3.79%
30,000 Epix Medical, Inc.<F1> 165,000
20,000 Molecular Devices Corp.<F1> 750,000
10,000 Osteotech, Inc.<F1> 287,500
30,000 Pharmaceutical Product
Development, Inc.<F1> 821,250
25,000 ResMed, Inc.<F1> 829,687
5,000 Xomed Surgical Products, Inc.<F1> 243,438
-----------
3,096,875
-----------
MULTI-INDUSTRY 0.45%
20,000 Veritas DGC, Inc.<F1> 366,250
-----------
OIL & GAS 1.64%
25,000 Cal Dive International, Inc.<F1> 746,875
60,000 Patterson Energy, Inc.<F1> 592,500
-----------
1,339,375
-----------
OIL & GAS - DRILLING 3.04%
440,000 Grey Wolf, Inc.<F1> 1,100,000
285,000 Key Energy Services, Inc.<F1> 1,015,312
22,250 UTI Energy Corp.<F1> 368,516
-----------
2,483,828
-----------
OIL & GAS - EXPLORATION 0.49%
20,000 Basin Exploration, Inc.<F1> 401,250
-----------
OIL & GAS - FIELD SERVICES 0.88%
20,000 Oceaneering International, Inc.<F1> 322,500
29,000 Tuboscope, Inc.<F1> 396,938
-----------
719,438
-----------
OIL & GAS - MACHINERY/
EQUIPMENT 0.64%
15,000 Dril-Quip, Inc.<F1> 344,062
4,000 Gulf Island Fabrication, Inc.<F1> 47,750
12,250 Varco International, Inc.<F1> 133,984
-----------
525,796
-----------
CALL TOLL-FREE 1-800-228-2121
VAN WAGONER MICRO-CAP FUND (CONT'D.) June 30, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
POLLUTION CONTROL -
SERVICES 2.06%
55,750 Tetra Tech, Inc.<F1> $ 919,875
25,000 Waste Connections, Inc.<F1> 762,500
-----------
1,682,375
-----------
RESTAURANTS 0.39%
96,250 Famous Dave's of America, Inc.<F1> 243,628
5,000 Rubio's Restaurants, Inc.<F1> 77,188
-----------
320,816
-----------
RETAIL - MAIL ORDER/DIRECT 0.44%
62,533 Garden.com, Inc.<F1><F2> 357,689
-----------
TELECOMMUNICATIONS -
EQUIPMENT 8.06%
17,500 Allegiance Telecom, Inc.<F1> 960,312
20,000 Anaren Microwave, Inc.<F1> 417,500
5,000 Aware, Inc.<F1> 230,625
7,000 C-COR Electronics, Inc.<F1> 195,125
34,838 Copper Mountain Networks, Inc.<F1><F4> 2,142,273
5,300 Harmonic, Inc.<F1> 304,419
132,857 Netro Corp.<F1><F2> 1,033,627
25,000 Powerwave Technologies, Inc.<F1> 806,250
250,000 Vertical Networks, Inc.<F1><F2> 500,000
-----------
6,590,131
-----------
TELECOMMUNICATIONS -
SERVICES 2.31%
40,000 Com21, Inc.<F1> 682,500
30,000 CTC Communications Corp.<F1> 585,000
24,000 MGC Communications, Inc.<F1> 624,000
-----------
1,891,500
-----------
TOTAL COMMON AND
PREFERRED STOCKS
(cost $39,749,867) 67,808,538
-----------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------
SHORT-TERM INVESTMENTS 12.16%
$9,930,000 UMB Bank, n.a., repurchase agree-
ment, 4.29%, dated 6/30/99, repur-
chase price $9,931,167, maturing
7/1/99 (collateralized by FNMA
discount notes maturing 7/19/99) $ 9,930,000
5,475 UMB Bank, n.a., Money Market
Fiduciary 5,475
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $9,935,475) 9,935,475
-----------
TOTAL INVESTMENTS 95.13%
(cost $49,685,342) 77,744,013
Other Assets less Liabilities 4.87% 3,977,248
-----------
NET ASSETS 100.00% $81,721,261
===========
NUMBER
OF SHARES
- ---------
SECURITIES SOLD SHORT
5,000 NEW ERA OF NETWORKS, INC.<F1> $ 219,688
-----------
TOTAL SECURITIES SOLD SHORT
(proceeds $210,931) $ 219,688
===========
<F1> Non-income producing
<F2> Preferred stock 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 approved by the Board of
Directors.
<F3> Shares held in escrow; can trade freely beginning in August 1999.
<F4> Security acquired in a private placement transaction; resale may be limited
due to certain restrictions. Security is valued under procedures approved
by the Board of Directors.
See notes to financial statements.
HTTP://WWW.VANWAGONER.COM
Van Wagoner Funds SCHEDULE OF INVESTMENTS
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MID-CAP FUND June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMMON AND PREFERRED STOCKS 68.66%
COMMERCIAL SERVICES -
MISCELLANEOUS 1.56%
12,000 AnswerThink Consulting
Group, Inc.<F1> $ 303,000
20,000 MedQuist Inc.<F1> 875,000
-----------
1,178,000
-----------
COMPUTER SOFTWARE -
ENTERPRISE 2.56%
15,000 BMC Software, Inc.<F1> 810,000
22,000 Concur Technologies, Inc.<F1> 618,750
70,671 Interwoven, Inc.<F1><F2> 399,998
12,000 IntraNet Solutions, Inc.<F1> 101,250
-----------
1,929,998
-----------
COMPUTER SOFTWARE -
INTERNET 5.79%
12,500 Covad Communications Group<F1> 666,406
7,500 Exodus Communications, Inc.<F1> 899,531
4,000 F5 Networks, Inc.<F1> 164,000
27,500 iVillage, Inc.<F1> 1,381,875
17,500 Rhythms NetConnections, Inc.<F1> 1,021,562
10,000 Software.com, Inc.<F1> 231,875
-----------
4,365,249
-----------
COMPUTER SOFTWARE -
MEDICAL 7.02%
498,000 OnHealth Network Co.<F1> 5,291,250
-----------
COMPUTER SOFTWARE -
SECURITY 0.96%
9,000 ISS Group, Inc.<F1> 339,750
4,500 VeriSign, Inc.<F1> 388,125
-----------
727,875
-----------
COMPUTERS - INTEGRATED
SYSTEMS 0.73%
25,350 Computer Network
Technology Corp.<F1> 548,194
-----------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMPUTERS - LOCAL
NETWORKS 3.79%
7,500 Brocade Communications Systems<F1> $ 723,281
8,500 Citrix Systems, Inc.<F1> 480,250
17,500 Extreme Networks, Inc.<F1> 1,016,094
20,000 Visual Networks, Inc.<F1> 640,000
-----------
2,859,625
-----------
COMPUTERS - MEMORY
DEVICES 2.24%
8,000 EMC Corp.<F1> 440,000
5,000 Network Appliances, Inc.<F1> 279,375
10,200 VERITAS Software Corp.<F1> 968,362
-----------
1,687,737
-----------
COMPUTERS - RETAIL/
WHOLESALE 0.74%
5,000 Emulex Corp.<F1> 555,938
-----------
COMPUTERS - SOFTWARE 3.34%
12,000 BEA Systems, Inc.<F1> 342,750
20,000 Compuware Corp.<F1> 636,250
6,000 NEON Systems, Inc.<F1> 200,250
24,000 Phone.com, Inc.<F1> 1,344,000
-----------
2,523,250
-----------
ELECTRONICS - MISCELLANEOUS
COMPONENTS 1.23%
12,500 RF Micro Devices, Inc.<F1> 932,813
-----------
ELECTRONICS - SEMICONDUCTOR
EQUIPMENT 0.99%
4,500 Uniphase Corp.<F1> 747,000
-----------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 5.43%
12,000 Conexant Systems, Inc.<F1> 696,750
20,000 Jabil Circuit, Inc.<F1> 902,500
4,300 PMC-Sierra, Inc.<F1> 253,431
4,500 QLogic Corp.<F1> 594,000
8,500 SDL, Inc.<F1> 434,031
15,000 TranSwitch Corp.<F1> 710,625
7,500 Vitesse Semiconductor Corp.<F1> 505,781
-----------
4,097,118
-----------
CALL TOLL-FREE 1-800-228-2121
VAN WAGONER MID-CAP FUND (CONT'D.) June 30, 1999
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
ENERGY - SERVICES 1.57%
30,000 Ensco International, Inc. $ 598,125
24,000 Nabors Industries, Inc.<F1> 586,500
-----------
1,184,625
-----------
FINANCE - INVESTMENT
BROKER 0.86%
9,000 The Goldman Sachs Group, Inc. 650,250
-----------
INTERNET - E-COMMERCE 2.33%
25,000 eToys, Inc.<F1> 1,018,750
15,500 Scient Corp.<F1> 737,219
-----------
1,755,969
-----------
INTERNET NETWORKS 2.90%
500 Juniper Networks, Inc.<F1> 74,500
22,000 Starmedia Network, Inc.<F1> 1,410,750
15,200 WebTrends Corp.<F1> 701,100
-----------
2,186,350
-----------
MEDICAL -
BIOMED/GENETICS 0.48%
10,000 Millennium Pharmaceuticals, Inc.<F1> 360,000
-----------
MEDICAL - OUTPATIENT/
HOME CARE 0.47%
13,750 Renal Care Group, Inc.<F1> 355,781
-----------
MEDICAL - WHOLESALE/DRUG 0.69%
15,000 Priority Healthcare Corp.<F1> 517,500
-----------
OIL & GAS 4.38%
12,500 Baker Hughes, Inc. 418,750
2,000 Cal Dive International, Inc.<F1> 59,750
25,000 Coflexip SA, ADR 1,087,500
81,250 Global Industries Ltd.<F1> 1,041,016
45,000 Global Marine, Inc.<F1> 694,687
-----------
3,301,703
-----------
OIL & GAS - FIELD SERVICES 0.88%
22,500 BJ Services Co.<F1> 662,344
-----------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
OIL & GAS -
MACHINERY/EQUIPMENT 4.89%
30,000 Cooper Cameron Corp.<F1> $ 1,111,875
75,000 National-Oilwell, Inc.<F1> 1,050,000
15,000 Smith International, Inc.<F1> 651,563
80,000 Varco International, Inc.<F1> 875,000
-----------
3,688,438
-----------
RETAIL - DISCOUNT/VARIETY 0.27%
2,500 Costco Companies, Inc.<F1> 200,156
-----------
TELECOMMUNICATIONS -
CELLULAR 0.98%
15,000 Affymetrix, Inc.<F1> 740,625
-----------
TELECOMMUNICATIONS -
EQUIPMENT 9.02%
10,000 ADC Telecommunications, Inc.<F1> 455,625
27,500 Allegiance Telecom, Inc.<F1> 1,509,062
7,250 Aware, Inc.<F1> 334,406
14,300 Copper Mountain Networks, Inc.<F1> 1,104,675
10,000 E-Tek Dynamics, Inc.<F1> 475,625
12,000 Metromedia Fiber Network, Inc.<F1> 431,250
50,000 Netro Corp.<F1><F2> 389,000
39,500 NorthPoint Communications
Group, Inc.<F1> 1,441,750
20,500 Powerwave Technologies, Inc.<F1> 661,125
-----------
6,802,518
-----------
TELECOMMUNICATIONS -
SERVICES 2.56%
25,000 Com21, Inc.<F1> 426,563
59,000 e.spire Communications Corp.<F1> 623,188
7,500 Level 3 Communications, Inc.<F1> 450,469
13,000 Qwest Communications
International, Inc.<F1> 429,813
-----------
1,930,033
-----------
TOTAL COMMON AND
PREFERRED STOCKS
(cost $43,185,508) 51,780,339
-----------
http://WWW.VANWAGONER.COM
Van Wagoner Funds SCHEDULE OF INVESTMENTS
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MID-CAP FUND (CONT'D.) June 30, 1999
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------
U.S. TREASURY NOTES 11.80%
$9,000,000 9/30/00, 4.50% $ 8,895,942
-----------
TOTAL U.S. TREASURY NOTES
(cost $8,884,939) 8,895,942
-----------
SHORT-TERM INVESTMENTS 10.67%
8,045,000 UMB Bank, n.a., repurchase agree-
ment, 4.29%, dated 6/30/99, repur-
chase price $8,045,946, maturing
7/1/99 (collateralized by FNMA
discount notes maturing 7/19/99) 8,045,000
4,569 UMB Bank, n.a., Money Market
Fiduciary 4,569
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $8,049,569) 8,049,569
-----------
TOTAL INVESTMENTS 91.13%
(cost $60,120,016) 68,725,850
Other Assets less Liabilities 8.87% 6,687,508
-----------
NET ASSETS 100.00% $75,413,358
===========
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
SECURITIES SOLD SHORT
5,000 BroadVision, Inc.<F1> $ 368,750
6,300 Critical Path, Inc.<F1> 348,469
7,500 Eclipsys Corp.<F1> 179,531
3,000 Gateway, Inc.<F1> 177,000
10,000 Net.B@nk, Inc.<F1> 380,000
2,500 New Era of Networks, Inc.<F1> 109,844
7,500 NextCard, Inc.<F1> 254,531
20,000 Terayon Communication
Systems, Inc.<F1> 1,117,500
10,000 Vignette Corp.<F1> 750,000
-----------
TOTAL SECURITIES SOLD SHORT
(proceeds $3,100,049) $3,685,625
===========
<F1> Non-income producing
<F2> Preferred stock 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 approved by the Board of
Directors.
<F3> Shares held in escrow; can trade freely beginning in August 1999.
<F4> Security acquired in a private placement transaction; resale may be limited
due to certain restrictions. Security is valued under procedures approved by
the Board of Directors.
See notes to financial statements.
CALL TOLL-FREE 1-800-228-2121
VAN WAGONER POST-VENTURE FUND JUNE 30, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMMON AND PREFERRED STOCKS 84.30%
CHEMICALS - SPECIALTY 0.45%
14,000 ChiRex, Inc.<F1> $ 449,750
-----------
COMMERCIAL SERVICES - BUSINESS 0.57%
77,189 InterDent, Inc.<F1> 564,445
-----------
COMMERCIAL SERVICES -MISCELLANEOUS 3.18%
14,000 AnswerThink Consulting Group, Inc.<F1> 353,500
1,500 CMGI, Inc.<F1> 171,093
17,500 MedQuist Inc.<F1> 765,625
40,000 The Metzler Group, Inc.<F1> 1,105,000
17,500 Realty Information Group, Inc.<F1> 761,250
-----------
3,156,468
-----------
COMPUTER SOFTWARE -EDUCATION 0.60%
55,000 Digital Chef, Inc.<F1><F2> 594,000
-----------
COMPUTER SOFTWARE -ENTERPRISE 2.92%
39,000 Best Software, Inc.<F1> 628,875
50,000 Concur Technologies, Inc.<F1> 1,406,250
98,940 Interwoven, Inc.<F1><F2> 560,000
36,000 IntraNet Solutions, Inc.<F1> 303,750
-----------
2,898,875
-----------
COMPUTER SOFTWARE -INTERNET 7.66%
255,000 Bluestone Software, Inc.<F1><F2> 693,600
23,000 Covad Communications Group<F1> 1,226,187
5,750 Exodus Communications, Inc.<F1> 689,640
8,000 F5 Networks, Inc.<F1> 328,000
25,800 iVillage, Inc.<F1> 1,296,450
40,936 iVillage, Inc.<F1><F4> 1,371,344
155,000 MaMaMedia, Inc.<F1><F2> 837,000
20,000 Rhythms NetConnections, Inc.<F1> 1,167,500
-----------
7,609,721
-----------
COMPUTER SOFTWARE -MEDICAL 8.15%
761,800 OnHealth Network Co.<F1> 8,094,125
-----------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMPUTER SOFTWARE -SECURITY 0.93%
13,000 ISS Group, Inc.<F1> $ 490,750
5,000 VeriSign, Inc.<F1> 431,250
-----------
922,000
-----------
COMPUTERS - GRAPHICS 0.78%
15,500 Micromuse, Inc.<F1> 773,063
-----------
COMPUTERS - INTEGRATED SYSTEMS 1.77%
45,000 Apex PC Solutions, Inc.<F1> 922,500
38,500 Computer Network
Technology Corp.<F1> 832,563
-----------
1,755,063
-----------
COMPUTERS - LOCAL NETWORKS 4.11%
98,750 ACT Networks, Inc.<F1> 1,684,921
2,000 Brocade Communications Systems<F1> 192,875
6,500 Citrix Systems, Inc.<F1> 367,250
16,000 Extreme Networks, Inc.<F1> 929,000
18,750 Interphase Corp.<F1> 431,250
15,000 Visual Networks, Inc.<F1> 480,000
-----------
4,085,296
-----------
COMPUTERS - MEMORY DEVICES 1.00%
6,250 Network Appliances, Inc.<F1> 349,219
6,800 VERITAS Software Corp.<F1> 645,575
-----------
994,794
-----------
COMPUTERS - MINI/MICRO 0.02%
346 Sun Microsystems, Inc.<F3> 23,831
-----------
COMPUTERS -RETAIL/WHOLESALE 0.34%
3,000 Emulex Corp.<F1> 333,563
-----------
COMPUTERS - SERVICES 0.46%
16,250 TSI International Software Ltd.<F1> 461,094
-----------
http://WWW.VANWAGONER.COM
Van Wagoner Funds SCHEDULE OF INVESTMENTS
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER POST-VENTURE FUND (CONT'D.) June 30, 1999
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMPUTERS - SOFTWARE 7.86%
7,500 Ariba, Inc.<F1> $ 729,375
48,000 Ariba, Inc.<F1><F4> 2,427,360
14,000 BEA Systems, Inc.<F1> 399,875
20,000 Event411.com, Inc.<F1><F2> 600,000
10,500 Great Plains Software, Inc.<F1> 495,469
8,000 NEON Systems, Inc.<F1> 267,000
12,000 Persistence Software, Inc.<F1> 163,500
22,500 Phone.com, Inc.<F1> 1,260,000
10,560 Phone.com, Inc.<F1><F4> 485,311
72,750 Serena Software, Inc.<F1> 977,577
-----------
7,805,467
-----------
ELECTRICAL SEMICONDUCTOR -
MANUFACTURING 0.20%
5,000 Globespan, Inc.<F1> 198,750
-----------
ELECTRONICS - LASER SYSTEMS/COMPONENTS 0.32%
4,000 VISX, Inc.<F1> 316,750
-----------
ELECTRONICS - MISCELLANEOUS COMPONENTS 0.43%
5,750 RF Micro Devices, Inc.<F1> 429,094
-----------
ELECTRONICS - SEMICONDUCTOR EQUIPMENT 0.86%
141,892 Cobalt Networks, Inc.<F1><F2> 525,000
2,000 Uniphase Corp.<F1> 332,000
-----------
857,000
-----------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 3.24%
3,000 Conexant Systems, Inc.<F1> 174,188
20,000 Jabil Circuit, Inc.<F1> 902,500
6,000 PMC-Sierra, Inc.<F1> 353,625
2,000 QLogic Corp.<F1> 264,000
7,000 SDL, Inc.<F1> 357,437
40,000 Transmeta Corp.<F1><F2> 240,000
9,375 TranSwitch Corp.<F1> 444,141
7,250 Vitesse Semiconductor Corp.<F1> 488,922
-----------
3,224,813
-----------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
INTERNET - E-COMMERCE 3.06%
40,000 eToys, Inc.<F1> $1,630,000
18,250 Scient Corp.<F1> 868,015
31,000 Stamps.com, Inc.<F1> 542,500
-----------
3,040,515
-----------
INTERNET NETWORKS 1.10%
1,250 Juniper Networks, Inc.<F1> 186,250
15,000 Viant Corp.<F1> 525,000
8,250 WebTrends Corp.<F1> 380,531
-----------
1,091,781
-----------
MEDICAL - BIOMED/GENETICS 0.22%
6,000 Millennium Pharmaceuticals, Inc.<F1> 216,000
-----------
MEDICAL - ETHICAL DRUGS 0.94%
45,750 Anesta Corp.<F1> 935,016
-----------
MEDICAL - HOSPITALS 0.87%
44,250 Province Healthcare Co.<F1> 862,875
-----------
MEDICAL - INFORMATION SERVICES 0.35%
46,750 Mecon, Inc.<F1> 350,625
-----------
MEDICAL - INSTRUMENTS 0.08%
3,750 ArthroCare Corp.<F1> 76,875
-----------
MEDICAL - OUTPATIENT/HOME CARE 0.46%
17,500 Renal Care Group, Inc.<F1> 452,813
-----------
MEDICAL - PRODUCTS 2.83%
12,500 MiniMed, Inc.<F1> 961,719
21,000 Osteotech, Inc.<F1> 603,750
22,000 Pharmaceutical Product
Development, Inc.<F1> 602,250
7,500 ResMed, Inc.<F1> 248,906
8,200 Xomed Surgical Products, Inc.<F1> 399,238
-----------
2,815,863
-----------
MEDICAL - WHOLESALE/DRUG 1.26%
36,250 Priority Healthcare Corp.<F1> 1,250,625
-----------
CALL TOLL-FREE 1-800-228-2121
VAN WAGONER POST-VENTURE FUND (CONT'D.) JUNE 30, 1999
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
OIL & GAS 2.37%
78,750 Cal Dive International, Inc.<F1> $2,352,656
-----------
OIL & GAS - DRILLING 2.51%
700,000 Key Energy Services, Inc.<F1> 2,493,750
-----------
OIL & GAS - EXPLORATION 0.61%
30,000 Basin Exploration, Inc.<F1> 601,875
-----------
OIL & GAS - FIELD SERVICES 0.56%
72,300 Horizon Offshore, Inc.<F1> 560,325
-----------
OIL & GAS - MACHINERY/EQUIPMENT 1.85%
80,000 Dril-Quip, Inc.<F1> 1,835,000
-----------
POLLUTION CONTROL - SERVICES 2.26%
99,375 Tetra Tech, Inc.<F1> 1,639,687
20,000 Waste Connections, Inc.<F1> 610,000
-----------
2,249,687
-----------
RETAIL - MAIL ORDER/DIRECT 0.30%
19,747 Garden.com, Inc.<F1><F2> 112,953
7,500 Pacific Sunwear of California, Inc.<F1> 182,813
-----------
295,766
-----------
RETAIL - RESTAURANTS 0.63%
130,000 Famous Dave's of America, Inc.<F1> 329,056
6,000 P.F. Chang's China Bistro, Inc.<F1> 129,750
10,500 Rubio's Restaurants, Inc.<F1> 162,094
-----------
620,900
-----------
TELECOMMUNICATIONS - CELLULAR 0.63%
12,750 Affymetrix, Inc.<F1> 629,531
-----------
TELECOMMUNICATIONS - EQUIPMENT 9.96%
26,750 Allegiance Telecom, Inc.<F1> 1,467,905
7,650 Aware, Inc.<F1> 352,856
15,250 Copper Mountain Networks, Inc.<F1> 1,178,062
11,615 Copper Mountain Networks, Inc.<F1><F4> 714,214
57,000 Digital Microwave Corp.<F1> 726,750
7,500 E-Tek Dynamics, Inc.<F1> 356,719
17,750 Metromedia Fiber Network, Inc.<F1> 637,891
120,000 Netro Corp.<F1><F2> 933,600
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
TELECOMMUNICATIONS -
EQUIPMENT 9.96% (CONT'D.)
50,150 NorthPoint Communications
Group, Inc.<F1> $ 1,830,475
24,250 Powerwave Technologies, Inc.<F1> 782,063
7,500 Time Warner Telecom, Inc. Class A<F1> 217,500
350,000 Vertical Networks, Inc.<F1><F2> 700,000
-----------
9,898,035
-----------
TELECOMMUNICATIONS - SERVICES 5.60%
182,250 Com21, Inc.<F1> 3,109,641
16,000 CTC Communications Corp.<F1> 312,000
63,000 e.spire Communications Corp.<F1> 665,438
10,000 Level 3 Communications, Inc.<F1> 600,625
10,000 MGC Communications, Inc.<F1> 260,000
18,750 Qwest Communications
International, Inc.<F1> 619,922
-----------
5,567,626
-----------
TOTAL COMMON AND PREFERRED STOCKS
(cost $64,546,753) 83,746,101
-----------
PRINCIPAL
AMOUNT
- --------
SHORT-TERM INVESTMENTS 10.73%
$10,480,000 UMB Bank, n.a. repurchase agree-
ment, 4.29%, dated 6/30/99, repur-
chase price $10,481,232, maturing
7/1/99 (collateralized by FNMA
discount notes maturing 7/19/99) 10,480,000
177,444 UMB Bank, n.a., Money Market
Fiduciary 177,444
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $10,657,444) 10,657,444
-----------
TOTAL INVESTMENTS 95.03%
(cost $75,204,197) 94,403,545
Other Assets less Liabilities 4.97% 4,937,162
-----------
NET ASSETS 100.00% $99,340,707
===========
HTTP://WWW.VANWAGONER.COM
Van Wagoner Funds SCHEDULE OF INVESTMENTS
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER POST-VENTURE FUND (CONT'D.) JUNE 30, 1999
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
SECURITIES SOLD SHORT
10,500 BroadVision, Inc.<F1> $ 774,375
6,300 Critical Path, Inc.<F1> 348,469
5,500 Eclipsys Corp.<F1> 131,656
9,000 Gateway, Inc.<F1> 531,000
10,000 Net.B@nk, Inc.<F1> 380,000
2,500 New Era of Networks, Inc.<F1> 109,844
7,500 NextCard, Inc.<F1> 254,531
20,000 Terayon Communication
Systems, Inc.<F1> 1,117,500
10,000 Vignette Corp.<F1> 750,000
-----------
TOTAL SECURITIES SOLD SHORT
(proceeds $3,730,320) $4,397,375
===========
<F1> Non-income producing
<F2> Preferred stock 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 approved by the Board of
Directors.
<F3> Shares held in escrow; can trade freely beginning in
August 1999.
<F4> Security acquired in a private placement transaction; resale may be limited
due to certain restrictions. Security is valued under procedures approved by
the Board of Directors.
See notes to financial statements.
CALL TOLL-FREE 1-800-228-2121
VAN WAGONER TECHNOLOGY FUND JUNE 30, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMMON AND PREFERRED STOCKS 81.28%
COMMERCIAL SERVICES - MISCELLANEOUS 1.24%
12,000 AnswerThink Consulting
Group, Inc.<F1> $ 303,000
750 CMGI, Inc.<F1> 85,547
13,500 MedQuist Inc.<F1> 590,625
-----------
979,172
-----------
COMPUTER SOFTWARE - EDUCATION 0.69%
50,000 Digital Chef, Inc.<F1><F2> 540,000
-----------
COMPUTER SOFTWARE - ENTERPRISE 3.93%
36,000 Best Software, Inc.<F1> 580,500
15,000 BMC Software, Inc.<F1> 810,000
37,500 Concur Technologies, Inc.<F1> 1,054,688
84,806 Interwoven, Inc.<F1><F2> 480,002
18,000 IntraNet Solutions, Inc.<F1> 151,875
1,250 Latitude Communications, Inc.<F1> 16,250
-----------
3,093,315
-----------
COMPUTER SOFTWARE - INTERNET 6.38%
215,000 Bluestone Software, Inc.<F1><F2> 584,800
12,500 Covad Communications Group<F1> 666,406
5,250 Exodus Communications, Inc.<F1> 629,672
4,000 F5 Networks, Inc.<F1> 164,000
17,300 iVillage, Inc.<F1> 869,325
17,544 iVillage, Inc.<F1><F4> 587,719
120,000 MaMaMedia, Inc.<F1><F2> 648,000
15,000 Rhythms NetConnections, Inc.<F1> 875,625
-----------
5,025,547
-----------
COMPUTER SOFTWARE - MEDICAL 7.88%
584,300 OnHealth Network Co.<F1> 6,208,188
-----------
COMPUTER SOFTWARE - SECURITY 1.15%
11,500 ISS Group, Inc.<F1> 434,125
5,500 VeriSign, Inc.<F1> 474,375
-----------
908,500
-----------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMPUTERS - GRAPHICS 0.68%
10,750 Micromuse, Inc.<F1> $ 536,156
-----------
COMPUTERS - INTEGRATED SYSTEMS 1.70%
35,000 Apex PC Solutions, Inc.<F1> 717,500
28,600 Computer Network
Technology Corp.<F1> 618,475
-----------
1,335,975
-----------
COMPUTERS - LOCAL NETWORKS 4.61%
70,875 ACT Networks, Inc.<F1> 1,209,305
1,000 Brocade Communications Systems<F1> 96,437
10,000 Cisco Systems, Inc.<F1> 643,125
4,500 Citrix Systems, Inc.<F1> 254,250
9,000 Extreme Networks, Inc.<F1> 522,562
21,875 Interphase Corp.<F1> 503,125
12,500 Visual Networks, Inc.<F1> 400,000
-----------
3,628,804
-----------
COMPUTERS - MEMORY DEVICES 1.64%
9,500 EMC Corp.<F1> 522,500
3,875 Network Appliances, Inc.<F1> 216,516
5,800 VERITAS Software Corp.<F1> 550,637
-----------
1,289,653
-----------
COMPUTERS - MINI/MICRO 1.58%
15,000 Dell Computer Corp.<F1> 555,000
10,000 Sun Microsystems, Inc. 688,750
-----------
1,243,750
-----------
COMPUTERS - RETAIL/WHOLESALE 1.06%
7,500 Emulex Corp.<F1> 833,906
-----------
COMPUTERS - SERVICES 0.84%
23,300 TSI International Software Ltd.<F1> 661,138
-----------
COMPUTERS - SOFTWARE 8.94%
20,000 Active Voice Corp.<F1> 290,000
12,500 Ariba, Inc.<F1> 1,215,625
7,000 BEA Systems, Inc.<F1> 199,938
12,500 Compuware Corp.<F1> 397,656
16,000 Event411.com, Inc.<F1><F2> 480,000
7,250 Great Plains Software, Inc.<F1> 342,109
15,000 Microsoft Corp.<F1> 1,352,813
7,000 NEON Systems, Inc.<F1> 233,625
10,500 Persistence Software, Inc.<F1> 143,063
HTTP://WWW.VANWAGONER.COM
VAN WAGONER FUNDS SCHEDULE OF INVESTMENTS
VAN WAGONER FUNDS SCHEDULE OF INVESTMENTS
VAN WAGONER TECHNOLOGY FUND (CONT'D.) JUNE 30, 1999
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
COMPUTERS - SOFTWARE 8.94% (CONT'D.)
26,500 Phone.com, Inc.<F1> $1,484,000
2,107 Phone.com, Inc.<F1><F4> 96,817
60,125 Serena Software, Inc.<F1> 807,930
-----------
7,043,576
-----------
ELECTRICAL SEMICONDUCTOR -
MANUFACTURING 0.25%
5,000 Globespan, Inc.<F1> 198,750
-----------
ELECTRONICS -
LASER SYSTEMS/COMPONENTS 0.20%
2,000 VISX, Inc.<F1> 158,375
-----------
ELECTRONICS - MISCELLANEOUS
COMPONENTS 0.97%
10,250 RF Micro Devices, Inc.<F1> 764,906
-----------
ELECTRONICS - PARTS DISTRIBUTION 0.12%
1,000 Motorola, Inc. 94,750
-----------
ELECTRONICS - SEMICONDUCTOR
EQUIPMENT 0.76%
121,622 Cobalt Networks, Inc.<F1><F2> 450,001
875 Uniphase Corp.<F1> 145,250
-----------
595,251
-----------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 5.78%
12,000 Conexant Systems, Inc.<F1> 696,750
3,000 DSP Communications, Inc.<F1> 86,624
15,000 Jabil Circuit, Inc.<F1> 676,875
7,500 Micron Technology, Inc. 302,344
4,000 PMC-Sierra, Inc.<F1> 235,750
3,000 QLogic Corp.<F1> 396,000
12,500 Sanmina Corp.<F1> 948,438
5,500 SDL, Inc.<F1> 280,844
1,000 Texas Instruments, Inc. 145,000
11,666 Transmeta Corp.<F1><F2> 69,996
9,187 TranSwitch Corp.<F1> 435,234
4,125 Vitesse Semiconductor Corp.<F1> 278,180
-----------
4,552,035
-----------
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
INTERNET - E-COMMERCE 2.78%
26,000 eToys, Inc.<F1> $1,059,500
13,125 Scient Corp.<F1> 624,258
29,000 Stamps.com, Inc.<F1> 507,500
-----------
2,191,258
-----------
INTERNET NETWORKS 2.08%
1,250 Juniper Networks, Inc.<F1> 186,250
10,250 Starmedia Network, Inc.<F1> 657,281
7,500 Viant Corp.<F1> 262,500
11,625 WebTrends Corp.<F1> 536,203
-----------
1,642,234
-----------
MEDICAL - BIOMED/GENETICS 0.14%
3,000 Millennium Pharmaceuticals, Inc.<F1> 108,000
-----------
MEDICAL - ETHICAL DRUGS 0.69%
26,775 Anesta Corp.<F1> 547,214
-----------
MEDICAL - INFORMATION SERVICES 0.25%
25,925 Mecon, Inc.<F1> 194,438
-----------
MEDICAL - INSTRUMENTS 0.05%
1,875 ArthroCare Corp.<F1> 38,438
-----------
MEDICAL - PRODUCTS 1.82%
9,000 MiniMed, Inc.<F1> 692,438
17,500 Osteotech, Inc.<F1> 503,125
4,950 Xomed Surgical Products, Inc.<F1> 241,000
-----------
1,436,563
-----------
OIL & GAS 2.06%
54,375 Cal Dive International, Inc.<F1> 1,624,453
-----------
OIL & GAS - MACHINERY/EQUIPMENT 1.60%
55,000 Dril-Quip, Inc.<F1> 1,261,563
-----------
POLLUTION CONTROL - SERVICES 1.45%
69,062 Tetra Tech, Inc.<F1> 1,139,523
-----------
CALL TOLL-FREE 1-800-228-2121
VAN WAGONER TECHNOLOGY FUND (CONT'D.) JUNE 30, 1999
NUMBER
OF SHARES VALUE
- ----------------------------------------------------------------------
RETAIL - MAIL ORDER/DIRECT 0.12%
16,701 Garden.com, Inc.<F1><F2> $ 95,530
-----------
TELECOMMUNICATIONS - CELLULAR 0.94%
15,000 Affymetrix, Inc.<F1> 740,625
-----------
TELECOMMUNICATIONS - EQUIPMENT 10.88%
19,125 Allegiance Telecom, Inc.<F1> 1,049,484
5,325 Aware, Inc.<F1> 245,616
12,000 Copper Mountain Networks, Inc.<F1> 927,000
7,742 Copper Mountain Networks, Inc.<F1><F4> 476,050
42,000 Digital Microwave Corp.<F1> 535,500
7,500 E-Tek Dynamics, Inc.<F1> 356,719
3,500 Harmonic, Inc.<F1> 201,031
3,000 Lucent Technologies, Inc. 202,313
13,375 Metromedia Fiber Network, Inc.<F1> 480,664
70,000 Netro Corp.<F1><F2> 544,600
10,000 Nokia Ab ADR 915,625
37,000 NorthPoint Communications
Group, Inc.<F1> 1,350,500
16,875 Powerwave Technologies, Inc.<F1> 544,219
5,000 Time Warner Telecom, Inc. Class A<F1> 145,000
300,000 Vertical Networks, Inc.<F1><F2> 600,000
-----------
8,574,321
-----------
TELECOMMUNICATIONS - SERVICES 6.02%
148,625 Com21, Inc.<F1> 2,535,914
12,800 CTC Communications Corp.<F1> 249,600
50,000 e.spire Communications Corp.<F1> 528,125
10,000 Level 3 Communications, Inc.<F1> 600,625
3,000 MCI WorldCom, Inc.<F1> 258,188
6,375 MGC Communications, Inc.<F1> 165,750
12,375 Qwest Communications
International, Inc.<F1> 409,148
-----------
4,747,350
-----------
TOTAL COMMON AND
PREFERRED STOCKS
(cost $51,320,524) 64,033,257
-----------
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------
SHORT-TERM INVESTMENTS 14.41%
$11,345,000 UMB Bank, n.a., repurchase agree-
ment, 4.29%, dated 6/30/99, repur-
chase price $11,346,333, maturing
7/1/99 (collateralized by FNMA
discount notes maturing 7/16/99) $11,345,000
5,478 UMB Bank, n.a., Money Market
Fiduciary 5,478
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $11,350,478) 11,350,478
-----------
TOTAL INVESTMENTS 95.69%
(cost $62,671,002) 75,383,735
-----------
Other Assets less Liabilities 4.31% 3,399,799
-----------
NET ASSETS 100.00% $78,783,534
===========
NUMBER
OF SHARES
- ---------
SECURITIES SOLD SHORT
10,500 BroadVision, Inc.<F1> $ 774,375
6,300 Critical Path, Inc.<F1> 348,469
3,750 Eclipsys Corp.<F1> 89,766
1,500 Gateway, Inc.<F1> 88,500
10,000 Net.B@nk, Inc.<F1> 380,000
2,500 New Era of Networks, Inc.<F1> 109,844
3,750 NextCard, Inc.<F1> 127,265
20,000 Terayon Communication
Systems, Inc.<F1> 1,117,500
10,000 Vignette Corp.<F1> 750,000
-----------
TOTAL SECURITIES SOLD SHORT
(proceeds $3,077,117) $3,785,719
===========
<F1> Non-income producing
<F2> Preferred stock 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 approved by the Board of
Directors.
<F3> Shares held in escrow; can trade freely beginning in
August 1999.
<F4> Security acquired in a private placement transaction; resale may be limited
due to certain restrictions. Security is valued under procedures approved by
the Board of Directors.
See notes to financial statements.
HTTP://WWW.VANWAGONER.COM
VAN WAGONER FUNDS STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
EMERGING MICRO-CAP MID-CAP POST-VENTURE TECHNOLOGY
ASSETS: GROWTH FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
Investments, at value:
Nonaffiliated issuers (cost $232,321,029,
$39,755,342, $52,075,016, $64,724,197
and $51,326,002, respectively) $353,287,530 $67,814,013 $60,680,850 $83,923,545 $64,038,735
Affiliated issuers (cost $28,947,429, $0, $0,
$0 and $0, respectively) 38,314,264 - - - -
Repurchase agreements, at value (cost $0,
$9,930,000, $8,045,000, $10,480,000 and
$11,345,000, respectively) - 9,930,000 8,045,000 10,480,000 11,345,000
Cash - 635,163 2,270,948 2,926,464 968,547
Deposit at brokers for short sales 20,424,495 743,844 2,626,670 3,146,130 2,691,893
Receivable from brokers for proceeds
on securities sold short 31,062,999 210,930 4,190,482 4,820,753 4,167,550
Receivable for investments sold 53,143,841 3,770,099 5,276,654 4,885,998 5,207,291
Interest and dividends receivable 3,703 4,046 116,250 4,446 4,674
Receivable from investment adviser - 18,218 18 26,196 5,331
Organizational expenses, net of accumulated
amortization 11,031 11,031 11,031 - -
Prepaid expenses and other assets 40,098 21,545 17,057 17,651 34,288
------------ ----------- ------------ ------------ ------------
Total Assets 496,287,961 83,158,889 83,234,960 110,231,183 88,463,309
------------ ----------- ------------ ------------ ------------
LIABILITIES:
Payable for investments purchased 16,750,206 1,074,384 4,015,685 6,307,826 5,743,698
Payable to custodian 2,855,279 - - - -
Accrued investment advisory fee 435,151 81,170 59,563 113,813 75,659
Accrued distribution fee 66,784 5,507 8,586 12,053 13,923
Securities sold short, at value (proceeds of
$23,429,966, $210,931, $3,100,049, $3,730,320
and $3,077,117, respectively) 28,064,981 219,688 3,685,625 4,397,375 3,785,719
Accrued expenses and other liabilities 101,626 56,879 52,143 59,409 60,776
------------ ----------- ------------ ------------ ------------
Total Liabilities 48,274,027 1,437,628 7,821,602 10,890,476 9,679,775
------------ ----------- ------------ ------------ ------------
NET ASSETS $448,013,934 $81,721,261 $75,413,358 $99,340,707 $78,783,534
============ =========== =========== =========== ===========
NET ASSETS CONSIST OF:
Capital stock $1,988 $408 $405 $423 $223
Paid-in-capital 384,630,753 69,551,255 65,985,125 65,650,427 59,115,826
Accumulated net realized gain
(loss) on investments (62,317,128) (15,880,316) 1,407,570 15,157,564 7,663,354
Net unrealized appreciation on investments 125,698,321 28,049,914 8,020,258 18,532,293 12,004,131
------------ ----------- ------------ ------------ ------------
Net Assets $448,013,934 $81,721,261 $75,413,358 $99,340,707 $78,783,534
============ =========== =========== =========== ===========
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 19,882,657 4,076,612 4,045,724 4,226,431 2,230,289
NET ASSET VALUE, REDEMPTION
PRICE, AND OFFERING PRICE PER SHARE
(NET ASSETS/SHARES OUTSTANDING) $22.53 $20.05 $18.64 $23.50 $35.32
====== ====== ====== ====== ======
</TABLE>
CALL TOLL-FREE 1-800-228-2121
See notes to financial statements.
VAN WAGONER FUNDS STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
EMERGING MICRO-CAP MID-CAP POST-VENTURE TECHNOLOGY
GROWTH FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $466,494 $113,029 $223,874 $227,920 $165,133
Dividends 13,577 3,004 44,369 693 2,163
------------ ----------- ------------ ------------ ------------
Total Investment Income 480,071 116,033 268,243 228,613 167,296
------------ ----------- ------------ ------------ ------------
EXPENSES:
Investment advisory fees 1,996,206 424,234 307,387 435,157 251,262
Distribution fees 399,241 70,706 76,847 72,526 50,252
Transfer agent fees and expenses 316,907 87,440 86,126 37,957 24,821
Fund accounting and administration fees 122,293 48,292 50,872 49,057 35,976
Printing and postage expenses 85,890 18,946 19,462 11,417 6,862
Custody fees 46,915 5,905 15,318 13,748 10,573
Professional fees 25,187 11,057 9,439 7,523 6,632
State registration fees 17,807 8,753 8,889 4,981 7,112
Amortization of organization costs 3,641 3,641 3,641 - -
Directors' fees and expenses 2,357 2,357 2,356 2,122 2,356
Miscellaneous 14,697 3,668 3,387 4,239 3,479
------------ ----------- ------------ ------------ ------------
Total expenses before waiver 3,031,141 684,999 583,724 638,727 399,325
Less: Waiver of expenses - (133,495) (18) (71,775) (6,732)
------------ ----------- ------------ ------------ ------------
Net Expenses 3,031,141 551,504 583,706 566,952 392,593
------------ ----------- ------------ ------------ ------------
NET INVESTMENT LOSS (2,551,070) (435,471) (315,463) (338,339) (225,297)
------------ ----------- ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments 149,152,492 16,941,399 31,995,766 19,311,136 9,350,577
Net realized gain (loss) on short positions 2,957,299 86,533 (185,649) 786,610 350,075
Net realized gain on options written 373,500 - - 30,730 16,075
Net realized loss on options purchased (14,239,090) (1,294,676) (2,238,923) (2,685,795) (2,089,244)
Net change in unrealized appreciation
and depreciation on investments 78,359,938 17,936,311 (6,305,688) 14,476,009 9,824,334
------------ ----------- ------------ ------------ ------------
Net Gain on Investments 216,604,139 33,669,567 23,265,506 31,918,690 17,451,817
------------ ----------- ------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $214,053,069 $33,234,096 $22,950,043 $31,580,351 $17,226,520
============ =========== =========== =========== ===========
</TABLE>
HTTP://WWW.VANWAGONER.COM
See notes to financial statements.
VAN WAGONER FUNDS FINANCIAL STATEMENTS
VAN WAGONER FUNDS STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EMERGING GROWTH FUND MICRO-CAP FUND
Six Months Six Months
Ended Year Ended Year
June 30, 1999 Ended June 30, 1999 Ended
(Unaudited) Dec. 31, 1998 (Unaudited) Dec. 31, 1998
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss $(2,551,070) $(3,390,492) $(435,471) $(665,669)
Net realized gain
(loss) on investments 149,152,492 (25,908,970) 16,941,399 (6,659,483)
Net realized gain (loss)
on short positions 2,957,299 (3,263,439) 86,533 (177,360)
Net realized gain on
options written 373,500 338,890 - 35,449
Net realized loss
on options purchased (14,239,090) (17,162,668) (1,294,676) (1,305,663)
Net change in unrealized
appreciation and
depreciation on
investments 78,359,938 62,835,799 17,936,311 14,759,509
------------ ------------ ----------- ----------
Net increase in net
assets resulting
from operations 214,053,069 13,449,120 33,234,096 5,986,783
------------ ------------ ----------- ----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from
sale of shares 344,610,890 89,133,843 40,770,759 20,946,312
Redemption of shares (300,021,710) (226,427,970) (38,397,091) (52,686,786)
------------ ------------ ----------- -----------
Net increase (decrease)
from share
transactions 44,589,180 (137,294,127) 2,373,668 (31,740,474)
------------ ------------ ----------- -----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 258,642,249 (123,845,007) 35,607,764 (25,753,691)
NET ASSETS:
Beginning of period 189,371,685 313,216,692 46,113,497 71,867,188
------------ ------------ ----------- ----------
End of period $448,013,934 $189,371,685 $81,721,261 $46,113,497
============ ============ =========== ===========
TRANSACTIONS IN SHARES:
Shares sold 19,849,076 9,196,675 2,598,830 2,127,300
Shares redeemed (17,241,626) (22,780,104) (2,603,860) (5,239,704)
------------ ------------ ----------- ----------
Net increase (decrease) 2,607,450 (13,583,429) (5,030) (3,112,404)
------------ ------------ ----------- ----------
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MID-CAP FUND POST-VENTURE FUND TECHNOLOGY FUND
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
June 30, 1999 Ended June 30, 1999 Ended June 30, 1999 Ended
(Unaudited) Dec. 31, 1998 (Unaudited) Dec. 31, 1998 (Unaudited) Dec. 31, 1998
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment loss $(315,463) $(592,797) $(338,339) $(227,736) $(225,297) $(35,859)
Net realized gain
(loss) on investments 31,995,766 (7,949,180) 19,311,136 2,119,321 9,350,577 536,736
Net realized gain (loss)
on short positions (185,649) (141,333) 786,610 (47,432) 350,075 (30,410)
Net realized gain on
options written - 67,488 30,730 17,724 16,075 -
Net realized loss
on options purchased (2,238,923) (1,209,905) (2,685,795) (1,039,330) (2,089,244) (211,806)
Net change in unrealized
appreciation and
depreciation on
investments (6,305,688) 16,378,554 14,476,009 4,464,627 9,824,334 2,179,797
------------ ----------- ----------- ----------- ----------- ----------
Net increase in net
assets resulting
from operations 22,950,043 6,552,827 31,580,351 5,287,174 17,226,520 2,438,458
------------ ----------- ----------- ----------- ----------- ----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from
sale of shares 39,505,608 13,148,963 140,267,348 14,473,780 90,303,274 12,482,357
Redemption of shares (32,966,816) (47,614,686) (91,587,999) (21,148,374) (36,922,436) (6,744,639)
------------ ----------- ----------- ----------- ----------- ----------
Net increase (decrease)
from share
transactions 6,538,792 (34,465,723) 48,679,349 (6,674,594) 53,380,838 5,737,718
------------ ----------- ----------- ----------- ----------- ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 29,488,835 (27,912,896) 80,259,700 (1,387,420) 70,607,358 8,176,176
NET ASSETS:
Beginning of period 45,924,523 73,837,419 19,081,007 20,468,427 8,176,176 -
------------ ----------- ----------- ----------- ----------- ----------
End of period $75,413,358 $45,924,523 $99,340,707 $19,081,007 $78,783,534 $8,176,176
============ =========== =========== =========== =========== ==========
TRANSACTIONS IN SHARES:
Shares sold 2,363,514 1,236,753 7,466,446 1,460,608 2,977,022 944,674
Shares redeemed (2,011,061) (4,465,716) (4,819,803) (2,212,061) (1,188,349) (503,058)
------------ ----------- ----------- ----------- ----------- ----------
Net increase (decrease) 352,453 (3,228,963) 2,646,643 (751,453) 1,788,673 441,616
============ =========== =========== =========== =========== ==========
</TABLE>
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See notes to financial statements.
VAN WAGONER FUNDS FINANCIAL STATEMENTS
VAN WAGONER FUNDS FINANCIAL STATEMENTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
EMERGING GROWTH FUND MICRO-CAP FUND
Six Months Year Year Year Six Months Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
June 30, 1999 Dec. 31, Dec. 31, Dec. 31, June 30, 1999 Dec. 31, Dec. 31, Dec. 31,
(Unaudited) 1998 1997 1996 (Unaudited) 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $10.96 $10.15 $12.69 $10.00 $11.30 $9.99 $12.45 $10.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment loss (0.13) (0.20) (0.25) (0.15) (0.11) (0.16) (0.26) (0.09)
Net realized and unrealized gains
(losses) on investments 11.70 1.01 (2.29) 2.84(2) 8.86 1.47 (2.20) 2.54(2)
-------- -------- -------- -------- -------- -------- --------- --------
Total from investment operations 11.57 0.81 (2.54) 2.69 8.75 1.31 (2.46) 2.45
-------- -------- -------- -------- -------- -------- --------- --------
Net Asset Value, End of Period $22.53 $10.96 $10.15 $12.69 $20.05 $11.30 $9.99 $12.45
======== ======== ======== ======== ======== ======== ======== ========
Total Return<F3> 105.57% 7.98% (20.02)% 26.90% 77.43% 13.11% (19.76)% 24.50%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $448,014 $189,372 $313,217 $638,159 $81,721 $46,113 $71,867 $140,698
Ratio of net expenses to average
net assets - net of waivers and
reimbursements <F4> 1.89% 1.95% 1.88% 1.95% 1.95% 1.95% 1.95% 1.95%
Ratio of net investment loss to
average net assets -
net of waivers
and reimbursements <F4> (1.60)% (1.55)% (1.68)% (1.49)% (1.54)% (1.30)% (1.72)% (1.04)%
Ratio of net expenses to average
net assets - before
voluntary waivers
and reimbursements <F4> 1.89% 2.00% 1.88% 1.98% 2.00% 2.00% 2.00% 2.00%
Ratio of net investment loss to
average net assets -
before voluntary
waivers and reimbursements<F4>(1.60)% (1.60)% (1.68)% (1.52)% (1.59)% (1.35)% (1.77)% (1.09)%
Portfolio turnover rate <F3> 277% 668% 333% 159% 128% 367% 232% 153%
MID-CAP FUND POST-VENTURE FUND TECHNOLOGY FUND<F1>
Six Months Year Year Year Six Months Year Year Six Months Year
Ended Ended Ended Ended Ended Ended Ended Ended Ended
June 30, 1999 Dec. 31, Dec. 31, Dec. 31, June 30, 1999 Dec. 31, Dec. 31, June 30, 1999 Dec. 31,
(Unaudited) 1998 1997 1996 (Unaudited) 1998 1997 (Unaudited) 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $12.43 $10.67 $12.39 $10.00 $12.08 $8.78 $10.00 $18.51 $10.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment loss (0.08) (0.16) (0.22) (0.09) (0.08) (0.14) (0.15) (0.10) (0.08)
Net realized and unrealized
gains (losses) on investments 6.29 1.92 (1.50) 2.48<F2> 11.50 3.44 (1.07) 16.91 8.59
------- ------- -------- -------- -------- -------- --------- -------- --------
Total from
investment operations 6.21 1.76 (1.72) 2.39 11.42 3.30 (1.22) 16.81 8.51
------- ------- -------- -------- -------- -------- --------- -------- --------
Net Asset Value, End of Period $18.64 $12.43 $10.67 $12.39 $23.50 $12.08 $8.78 $35.32 $18.51
======= ======= ======= ======= ======= ======= ======== ======= ========
Total Return<F3> 49.96% 16.49% (13.88)% 23.90% 94.54% 37.59% (12.20)% 90.82% 85.10%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of
period (000s) $75,413 $45,925 $73,837 $137,740 $99,341 $19,081 $20,468 $78,784 $8,176
Ratio of net expenses to
average net assets -
net of waivers and
reimbursements<F4> 1.90% 1.95% 1.80% 1.95% 1.95% 1.95% 1.95% 1.95% 1.95%
Ratio of net investment
loss to average
net assets - net
of waivers and
reimbursements<F4> (1.03)% (1.15)% (1.42)% (1.16)% (1.17)% (1.39)% (1.39)% (1.12)% (0.88)%
Ratio of net expenses to
average net assets - before
voluntary waivers
and reimbursements<F4> 1.90% 2.00% 1.80% 2.00% 2.00% 2.00% 2.00% 1.98% 2.00%
Ratio of net investment loss to
average net assets -
before voluntary
waivers and
reimbursements<F4> (1.03)% (1.20)% (1.42)% (1.21)% (1.22)% (1.44)% (1.44)% (1.15)% (0.93)%
Portfolio turnover rate<F3> 430% 787% 304% 173% 234% 641% 317% 197% 888%
</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
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See notes to financial statements.
VAN WAGONER FUNDS NOTES TO FINANCIAL STATEMENTS
VAN WAGONER FUNDS NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (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.
(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.
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(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, 1998, the Emerging Growth, Micro-Cap and
Mid-Cap Funds had federal income tax capital loss carryforwards
of $187,146,618, $30,446,223 and $24,215,117, respectively.
The entire federal income tax loss carryforward for each
of these Funds expires between 2004 and 2006. During 1998, the
Post-Venture Fund utilized $403,949 of its capital loss carryforward
against net realized capital gains. As of December 31, 1998,
the Post-Venture Fund had a federal income tax capital loss carryforward
of $945,298 which expires in 2005, and the Emerging Growth Fund had
$3,930,411 of post-October 1998 capital losses which are deferred until
1999 for tax purposes. 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 Funds own some securities which are
unregistered and thus restricted as to resale. These securities are
valued at their fair value, which at June 30, 1999 is equal to cost.
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, Mid-Cap, Post-Venture and
Technology Funds had restricted securities with an aggregate market
value of $30,174,324, $4,956,315, $788,998, $5,796,153 and $4,492,929,
respectively, representing 6.7%, 6.1%, 1.0%, 5.8% and 5.7%, 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, realized gains
or losses are recognized without regard to any unrealized gains or
losses on the underlying securities.
The Funds may also write (sell) 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 Statements of Assets and
Liabilities as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the
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VAN WAGONER FUNDS NOTES TO FINANCIAL STATEMENTS
VAN WAGONER FUNDS NOTES TO FINANCIAL STATEMENTS
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 Funds 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
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 agreement
also provides that the Adviser will limit expenses to no more than 2.00% of
each Fund's average daily net assets. The Adviser has further 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,
2000. Expenses of $0, $133,495, $18, $71,775 and $6,732 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
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determined periodically 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, 1999 were as
follows:
PURCHASES SALES
-----------------------------------------------
EMERGING
GROWTH FUND $803,314,161 $846,605,931
MICRO-CAP FUND 65,621,258 74,453,588
MID-CAP FUND 208,910,361 228,436,636
POST-VENTURE FUND 143,549,851 109,906,583
TECHNOLOGY FUND 101,166,055 64,945,363
For the six months ended June 30, 1999, 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
$246,647,747, $49,743,109, $57,958,438, $72,945,916 and $60,865,528,
respectively. At June 30, 1999, 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 $133,747,717 $(16,858,651) $116,889,066
MICRO-CAP FUND 29,466,163 (1,684,947) 27,781,216
MID-CAP FUND 10,868,776 (3,786,989) 7,081,787
POST-VENTURE
FUND 20,856,199 (3,795,945) 17,060,254
TECHNOLOGY
FUND 14,406,807 (3,674,319) 10,732,488
6. SHORT POSITIONS
When a fund sells a security short, an amount equal to the sales proceeds is
included in the Statements of Assets and Liabilities as an asset and an equal
amount as a liability. The amount of the liability is subsequently marked-to-
market to reflect the current value of the security sold short. Subsequent
fluctuations in the market prices of securities sold short may cause the
liability to differ from that reflected in the Statements of Assets and
Liabilities. The fund is liable for any dividends paid on securities sold
short. The fund maintains assets consisting of cash or liquid securities
equal in amount to the liability created by the short sale. These assets are
adjusted daily to reflect changes in the value of the securities sold short.
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VAN WAGONER FUNDS NOTES TO FINANCIAL STATEMENTS
VAN WAGONER FUNDS NOTES TO FINANCIAL STATEMENTS
7. OPTIONS CONTRACTS WRITTEN
The premium amount and the number of options contracts written during the six
months ended June 30, 1999 were as follows:
PREMIUM NUMBER OF
AMOUNT CONTRACTS
- --------------------------------------------------------------
EMERGING GROWTH FUND
Options outstanding at
December 31, 1998 - -
Options written $ 2,241,240 5,820
Options closed (2,241,240) (5,820)
Options exercised - -
Options expired - -
------------ -----------
Options outstanding at
June 30, 1999 $- -
============ ===========
POST-VENTURE FUND
Options outstanding at
December 31, 1998 - -
Options written $178,878 520
Options closed (178,878) (520)
Options exercised - -
Options expired - -
---------- ----------
Options outstanding at
June 30, 1999 $- -
========== ==========
PREMIUM NUMBER OF
AMOUNT CONTRACTS
- ----------------------------------------------------------------
TECHNOLOGY FUND
Options outstanding at
December 31, 1998 - -
Options written $ 89,439 260
Options closed (89,439) (260)
Options exercised - -
Options expired - -
---------- ---------
Options outstanding at
June 30, 1999 $- -
========== =========
8. 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 GAIN
DIVIDENDS REALIZED
SHARE ACTIVITY CREDITED ON SALE
--------------------------------------------------------------------------
BALANCE PURCHASES/ SALES/ BALANCE TO INCOME OF SHARES
SECURITY NAME 12/31/98 ADDITIONS REDUCTIONS 6/30/99 IN 1999 IN 1999
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EMERGING GROWTH FUND
OnHealth Network Co.<F1> 1,019,900 2,451,450 5,000 3,466,350 - $467
Famous Dave's
of America, Inc.<F1> 381,600 204,800 - 586,400 - -
------- -------
- $467
======= =======
<F1> Non-income producing
</TABLE>
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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.
(LOGO)
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EXPRESS MAIL OR OVERNIGHT DELIVERIES
SHOULD BE SENT TO:
VAN WAGONER FUNDS
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