Van Wagoner Funds
Annual Report
December 31, 1999
(LOGO)
<PAGE>
Van Wagoner Funds ANNUAL REPORT
- --------------------------------------------------------------------------------
Van Wagoner Funds ANNUAL REPORT
Dear Fellow Shareholders: December 31, 1999
- --------------------------------------------------------------------------------
The Van Wagoner Funds ranked at the top of all U.S. equity funds in 1999. In
fact, three Funds-Emerging Growth, Micro-Cap and Post-Venture-were in the 99th
percentile of their peer group, with Mid-Cap and Technology not far behind. All
Funds significantly outpaced major market indices including the Russell 2000,
S&P 500/R Index and Nasdaq Industrial Index.<F1>
So now shareholders are asking, "What'll you do for an encore?" As a shareholder
myself, I was certainly happy with this year's return-but please understand this
was a unique time for the markets and the Van Wagoner Funds. It's unrealistic to
expect such returns to continue. In today's changing markets, one constant is
our investment style. Built on a distinctive style of research and pure focus on
emerging growth stocks, it enabled us to outperform in 1999.
The wind was at our backs this year, as evidenced by the returns of the Russell
indices. The Small-Cap Growth Index outperformed the Total Return Index (43.09%
vs. 21.26%) in 1999. Despite interest rate hikes and Y2K fears, investors
swarmed into technology issues across all market capitalizations. Small-cap
technology companies did particularly well, with the Russell 2000 surpassing the
broader S&P 500/R Index for the first time in six years. In a similar fashion,
the smaller capitalization Van Wagoner Funds (Emerging Growth, Micro-Cap and
Post-Venture) outperformed the larger capitalization Mid-Cap Fund.
Our bottom-up research helped us safely navigate the rocky waters of earnings
reports. In fact, about 95% of the companies we held met or exceeded earnings
estimates in 1999. I really have to give the analysts credit for a great year.
Our research also led us to a higher cash position mid-year, as we foresaw a dip
in technology due to valuations. The dip came, as did the Taiwanese earthquake,
in the third quarter. We used these opportunities to boost our overall
technology exposure.
Our emphasis on emerging growth stocks with strong fundamentals resulted in
little sector rotation this year. We maintained a well-diversified portfolio of
stocks, with a core concentration in technology. Here's a sector-by-sector look
at where we stood in 1999.
- - Computer networking infrastructure continues to be an area of emphasis. With
Internet traffic growing even faster than expected and large corporations
upgrading their networks, computer networking companies are well-positioned
for growth. We like the long-term fundamentals of many companies in this
area, including Emulex Corp.<F2> and Extreme Networks, Inc.<F2>
- - Energy companies show a bullish long-term outlook. We reallocated technology
profits into this sector later in the year, increasing our exposure as we
took advantage of seasonal weakness to buy innovative companies.
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<PAGE>
Van Wagoner Funds ANNUAL REPORT
- - Health care played a smaller role in our portfolios in 1999. The sector was
under pressure from government spending cuts, Year 2000 budget constraints
and regulatory scrutiny. Toward the end of the year, we started to see
opportunities in medical devices and drug discovery. Improving sentiment in
Washington, D.C. may provide a favorable backdrop for health care services
companies in 2000.
- - Semiconductors remain particularly attractive; we increased our holdings
throughout the year. The Taiwanese earthquake in September hit this sector
especially hard because many leading chip companies outsource the production
of the chips they design to Taiwanese foundries. We like the long-term
fundamentals for this sector, so we took advantage of the short-term
volatility in semiconductor stocks to add to our favorite positions.
- - Consumer goods' weighting increased in the first quarter of the year as our
research showed strong retail spending and consumer sentiment. We reduced
our exposure to negligible after May, believing the Fed's desire to slow
domestic growth would affect discretionary consumer spending.
- - Software stocks represented our largest sector through 1999. We continue to
favor Web-enablement companies. It's now essential for corporations of all
sizes to have a presence on the Web, to conduct business, provide customer
support or streamline supply chains. Many of the companies beaten down by
Y2K concerns early in the year popped back at the end of the year, due to
the enormous opportunities that exist for companies with solutions-oriented
products.
- - Telecommunications companies have exploded, fueled by deregulation and the
Internet. We focus on companies that will benefit from increased Internet
usage (Exodus Communications, Inc.<F2> and Covad Communications Group,
Inc.(2)) and increased bandwidth availability (JDS Uniphase Corp.<F2> and
Copper Mountain Networks, Inc.<F2>).
In 1999, the Van Wagoner Funds achieved several significant milestones. First,
we closed the Emerging Growth and Micro-Cap Funds, whose asset size reached an
amount that allows us to most effectively execute our investment style over the
long term. Second, the Van Wagoner Emerging Growth and Post-Venture Funds posted
five-star Overall Morningstar Ratings/TM (their top rating).<F3>
Our analysts' commitment to diligent fundamental research continued to reward
shareholders throughout the year. Our conversations with company management,
venture capitalists, vendors and suppliers helped us uncover new trends and
investment ideas that we're excited about for the year 2000 and beyond.
As we begin the 21st century, amid concerns over the Fed raising interest rates
to slow the economy, the Van Wagoner Funds will continue to invest in emerging
growth companies with the potential for long-term appreciation. Short-term
volatility will undoubtedly continue; it's the nature of emerging
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds ANNUAL REPORT
growth investing. I want to thank you, our shareholders, for holding firm with
us. Like you, everyone on the Van Wagoner Funds investment team is a
shareholder, and we look forward to the years ahead.
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 1999, the
Funds' performance benefited from their investments in the technology
sectors.
<F2> Holdings may change due to ongoing management. References to specific
investments should not be construed as a recommendation of the Funds or
their Adviser.
<F3> Morningstar proprietary ratings reflect historical risk-adjusted
performance as of 12/31/99. The ratings are subject to change every month.
Past performance is no guarantee of future results. Morningstar ratings are
calculated from the fund's three-, five- and 10-year average annual returns
(if applicable) in excess of 90-day Treasury bill returns with appropriate
fee adjustments, and a risk factor that reflects fund performance below 90-
day T-bill returns. The top 10% of the funds in a broad asset class receive
5 stars. Van Wagoner Emerging Growth and Post-Venture Funds received 5
stars for a three-year period ended 12/31/99. The Funds were rated among
3,469 mutual funds in their broad asset class for the three-year period
ending 12/31/99.
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<PAGE>
Van Wagoner Funds PERFORMANCE
Emerging Growth Fund
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TOTAL RETURN For the periods ended 12/31/99
- -----------------------------------------------------------
ONE YEAR AVERAGE ANNUAL SINCE INCEPTION
291.15% 43.89%
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 assuming reinvestment of distributions. 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 tracks the performance of domestic common stocks
traded on the regular Nasdaq market and which are classified as industrial
companies. As of December 31, 1999, this index included 2,537 companies,
including agricultural, mining, construction, manufacturing (electronic
components), services and public administration enterprises.
The Lipper Mid-Cap Growth Funds Index includes funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) of less than 300% of the
dollar-weighted median market capitalization of the S&P MidCap 400 Index.
Emerging Nasdaq Lipper
Growth Fund Industrial Mid-Cap Growth
------------ ------------ ------------
12/31/95 10,000 10,000 10,000
12/31/96 12,690 11,557 11,346
12/31/97 10,150 12,772 12,632
12/31/98 10,960 13,694 14,248
12/31/99 42,870 23,584 24,751
Micro-Cap Fund
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TOTAL RETURN For the periods ended 12/31/99
- ------------------------------------------------------------
ONE YEAR AVERAGE ANNUAL SINCE INCEPTION
207.88% 36.57%
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 assuming reinvestment of distributions. 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 Small-Cap Growth Funds Index includes funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) of less than 250% of the
dollar-weighted median market capitalization of the S&P Small-Cap 600 Index.
Micro-Cap Russell Lipper
Fund 2000 Small-Cap Growth
------------ ------------ ------------
12/31/95 10,000 10,000 10,000
12/31/96 12,450 11,649 11,705
12/31/97 9,990 14,254 13,019
12/31/98 11,300 13,891 13,145
12/31/99 34,790 16,844 21,185
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds PERFORMANCE
Mid-Cap Fund
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TOTAL RETURN For the periods ended 12/31/99
- ------------------------------------------------------------
ONE YEAR AVERAGE ANNUAL SINCE INCEPTION
126.88% 29.59%
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 assuming reinvestment of distributions. 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 Mid-Cap Growth Funds Index includes funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) of less than 300% of the
dollar-weighted median market capitalization of the S&P MidCap 400 Index.
Mid-Cap S&P Lipper
Fund MidCap 400 Mid-Cap Growth
------------ ------------ ------------
12/31/95 10,000 10,000 10,000
12/31/96 12,390 11,920 11,346
12/31/97 10,670 15,765 12,632
12/31/98 12,430 18,778 14,248
12/31/99 28,202 21,543 24,751
Post-Venture Fund
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TOTAL RETURN For the periods ended 12/31/99
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ONE YEAR AVERAGE ANNUAL SINCE INCEPTION
237.22% 59.71%
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 assuming reinvestment of distributions. 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 tracks the performance of domestic common stocks
traded on the regular Nasdaq market and which are classified as industrial
companies. As of December 31, 1999, this index included 2,537 companies,
including agricultural, mining, construction, manufacturing (electronic
components), services and public administration enterprises.
The Lipper Mid-Cap Growth Funds Index includes funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) of less than 300% of the
dollar-weighted median market capitalization of the S&P MidCap 400 Index.
Post-Venture Nasdaq Lipper
Fund Industrial Mid-Cap Growth
------------ ------------ ------------
12/31/96 10,000 10,000 10,000
12/31/97 8,780 11,051 11,134
12/31/98 12,080 11,849 12,558
12/31/99 40,736 20,407 21,816
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<PAGE>
Van Wagoner Funds PERFORMANCE
Technology Fund
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TOTAL RETURN For the periods ended 12/31/99
- ------------------------------------------------------------
ONE YEAR AVERAGE ANNUAL SINCE INCEPTION
223.76% 144.80%
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 assuming reinvestment of distributions. 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 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 Lipper
Technology Stanley S&P Science
Fund High-Tech 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
12/31/99 59,927 41,267 15,564 31,432
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<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER EMERGING GROWTH FUND December 31, 1999
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NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON AND PREFERRED STOCKS 90.59%
COMMERICAL SERVICES - SECURITY/SAFETY 0.24%
17,400 Check Point Software Technologies Ltd.<F1> $3,458,250
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COMPUTER SOFTWARE - DESKTOP 0.77%
50,500 Gemstar International Group Ltd.<F1> 3,598,125
52,500 Mission Critical Software, Inc.<F1> 3,675,000
77,700 NetIQ Corp.<F1> 4,045,256
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11,318,381
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COMPUTER SOFTWARE - EDUCATION 0.32%
23,300 Metasolv Software, Inc.<F1> 1,904,775
265,000 Tavolo, Inc.<F1><F3> 2,862,000
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4,766,775
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COMPUTER SOFTWARE - ENTERPRISE 20.67%
500,000 Acta Technology, Inc.<F1><F3> 2,500,000
101,350 Actuate Software Corp.<F1> 4,345,381
1,230,750 Ariba, Inc.<F1> 218,304,281
64,350 BindView Development Corp.<F1> 3,197,391
76,050 Cysive, Inc.<F1> 5,480,353
118,650 Daleen Technologies, Inc.<F1> 2,595,469
15,075 E.piphany, Inc.<F1> 3,363,609
1,536,584 Eprise Corp.<F1><F3> 2,366,339
84,000 Event411.Com, Inc.<F1><F3> 2,520,000
293,600 Impresse Corp.<F1><F3> 3,637,704
26,650 Informatica Corp.<F1> 2,834,894
301,531 Interwoven, Inc.<F1><F4> 30,961,810
288,900 IntraNet Solutions, Inc.<F1> 10,689,300
185,725 Latitude Communications, Inc.<F1> 4,852,066
99,150 Lightbridge, Inc.<F1> 2,751,412
6,000 Reciprocal, Inc.<F1><F3> 2,728,560
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303,128,569
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COMPUTER SOFTWARE - INTERNET 11.81%
55,300 Accrue Software, Inc.<F1> 2,993,112
49,100 Active Software, Inc.<F1> 4,517,200
49,950 AGENCY.COM Ltd.<F1> 2,547,450
NUMBER
OF SHARES VALUE
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COMPUTER SOFTWARE - INTERNET 11.81% (CONT'D.)
20,300 Agile Software Corp.<F1> $4,409,856
47,450 Art Technology Group, Inc.<F1> 6,079,531
56,700 Bluestone Software, Inc.<F1> 6,520,500
359,375 Bluestone Software, Inc.<F1><F4> 36,406,772
19,750 C-Bridge Internet Solutions, Inc.<F1> 960,344
205,800 Covad Communications Group, Inc.<F1> 11,511,937
43,050 Exodus Communications, Inc.<F1> 3,823,378
28,850 F5 Networks, Inc.<F1> 3,288,900
106,800 iManage, Inc.<F1> 3,430,950
712,562 iVillage, Inc.<F1> 14,429,381
17,325 Kana Communications, Inc.<F1> 3,551,625
12,700 Liberate Technologies, Inc.<F1> 3,263,900
750,000 MaMaMedia, Inc.<F1><F3> 4,050,000
39,350 Netopia, Inc.<F1> 2,137,197
18,200 OnDisplay, Inc.<F1> 1,653,925
160,922 Onvia.Com, Inc.<F1><F3> 2,206,241
34,650 Portal Software, Inc.<F1> 3,564,619
12,500 Preview Systems, Inc.<F1> 810,938
412,500 Preview Systems, Inc.<F1><F4> 22,008,195
116,850 Primus Knowledge Solutions, Inc.<F1> 5,294,766
217,650 Rhythms NetConnections, Inc.<F1> 6,747,150
259,000 Screaming Media.Net, Inc.<F1><F3> 2,900,800
27,075 Silknet Software, Inc.<F1> 4,487,681
31,700 SilverStream Software, Inc.<F1> 3,772,300
18,850 Vignette Corp.<F1> 3,072,550
12,200 Vitria Technology, Inc.<F1> 2,854,800
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173,295,998
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COMPUTER SOFTWARE - MEDICAL 3.16%
5,192,050 OnHealth Network Co.<F1><F2> 46,403,947
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COMPUTER SOFTWARE - SECURITY 0.92%
49,750 ISS Group, Inc.<F1> 3,538,469
27,500 VeriSign, Inc.<F1> 5,250,781
154,000 WatchGuard Technologies, Inc.<F1> 4,658,500
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13,447,750
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COMPUTERS - GRAPHICS 0.22%
19,050 Micromuse, Inc.<F1> 3,238,500
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<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER EMERGING GROWTH FUND (CONT'D.) December 31, 1999
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NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS - LOCAL NETWORKS 2.43%
26,300 Brocade Communications Systems, Inc.<F1> $4,655,100
30,600 Citrix Systems, Inc.<F1> 3,763,800
97,650 Extreme Networks, Inc.<F1> 8,153,775
20,100 Foundry Networks, Inc.<F1> 6,063,919
150,900 NetSolve, Inc.<F1> 4,753,350
480,000 Sitara Networks, Inc.<F1> 1,848,000
1,250,000 Top Layer Networks, Inc.<F1><F3> 1,950,000
56,700 Visual Networks, Inc.<F1> 4,493,475
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35,681,419
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COMPUTERS - MEMORY DEVICES 1.13%
26,150 ARM Holdings plc<F1> 5,007,725
1,215,000 Lexar Media, Inc.<F1><F3> 3,146,850
46,700 Network Appliances, Inc.<F1> 3,879,019
31,575 VERITAS Software Corp.<F1> 4,519,172
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16,552,766
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COMPUTERS - MINI/MICRO 0.77%
1,010,000 eMachines, Inc.<F1><F3> 6,447,840
74,300 Rational Software Corp.<F1> 3,649,988
15,252 Sun Microsystems, Inc.<F1> 1,181,077
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11,278,905
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COMPUTERS - RETAIL/WHOLESALE 0.97%
90,400 Emulex Corp.<F1> 10,170,000
71,750 Netegrity, Inc.<F1> 4,085,266
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14,255,266
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COMPUTERS - SERVICES 0.55%
46,300 InterNAP Network Services Corp.<F1> 8,009,900
-------------
COMPUTERS - SOFTWARE 4.39%
20,100 Allaire Corp.<F1> 2,940,881
57,600 BEA Systems, Inc.<F1> 4,028,400
27,750 BroadVision, Inc.<F1> 4,719,234
1,540,000 Entevo Corp.<F1><F3> 2,310,000
37,475 Mercury Interactive Corp.<F1> 4,044,958
316,895 Phone.com, Inc.<F1> 36,740,013
23,150 RealNetworks, Inc.<F1> 2,785,234
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS - SOFTWARE 4.39% (CONT'D.)
105,200 SERENA Software, Inc.<F1> $3,254,625
41,950 Siebel Systems, Inc.<F1> 3,523,800
-------------
64,347,145
-------------
ELECTRICAL PRODUCTS 0.44%
134,850 Power Integrations, Inc.<F1> 6,464,372
-------------
ELECTRONICS - LASER SYSTEMS/COMPONENTS 0.41%
130,950 Cymer, Inc.<F1> 6,023,700
-------------
ELECTRONICS - MISCELLANEOUS COMPONENTS 0.54%
116,350 RF Micro Devices, Inc.<F1> 7,962,703
-------------
ELECTRONICS - SEMICONDUCTOR EQUIPMENT 7.31%
60,450 ASM Lithography Holding N.V.<F1> 6,876,187
83,200 Caliper Technologies Corp.<F1> 5,553,600
648,648 Cobalt Networks, Inc.<F1><F4> 60,645,410
97,650 JDS Uniphase Corp.<F1> 15,752,166
524,500 LTX Corp.<F1> 11,735,686
32,750 Photon Dynamics, Inc.<F1> 1,269,062
162,300 Rudolph Technologies, Inc.<F1> 5,437,050
-------------
107,269,161
-------------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 4.86%
41,700 Applied Micro Circuits Corp.<F1> 5,306,325
19,700 Broadcom Corp.<F1> 5,365,787
66,700 Conexant Systems, Inc.<F1> 4,427,212
5,800 Exar Corp.<F1> 341,475
53,550 Globespan, Inc.<F1> 3,487,444
24,400 PMC-Sierra, Inc.<F1> 3,911,625
62,200 QLogic Corp.<F1> 9,944,225
1,000,000 Sandcraft, Inc.<F1><F3> 2,470,000
46,500 SDL, Inc.<F1> 10,137,000
625,000 StorageNetworks, Inc.<F1><F3> 3,075,000
514,000 Transmeta Corp.<F1><F3> 5,140,000
207,212 TranSwitch Corp.<F1> 15,035,821
50,000 Vitesse Semiconductor Corp.<F1> 2,621,875
-------------
71,263,789
-------------
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER EMERGING GROWTH FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
ENERGY - SERVICES 1.48%
227,650 Ensco International, Inc. $ 5,207,494
263,500 Nabors Industries, Inc.<F1> 8,152,031
208,700 Weatherford International, Inc.<F1> 8,334,956
-------------
21,694,481
-------------
FOOD 0.06%
30,250 Symyx Technologies, Inc.<F1> 907,500
-------------
INTERNET - E-COMMERCE 3.33%
170,000 Ebenx, Inc.<F1> 7,692,500
105,400 eToys, Inc.<F1> 2,766,750
128,250 Fatbrain.com, Inc.<F1> 3,214,266
73,150 GetThere.com, Inc.<F1> 2,944,287
232,680 HomeGrocer.com, Inc.<F1><F3> 2,699,088
452,650 iGo Corp.<F1> 4,102,141
54,250 Netcentives, Inc.<F1> 3,380,453
172,450 PlanetRX.com, Inc.<F1> 2,500,525
665,000 Pointshare Corp.<F1><F3> 1,828,750
32,100 Scient Corp.<F1> 2,774,644
400,550 SmarterKids.com, Inc.<F1> 2,903,988
592,500 SmarterKids.com, Inc.<F1><F4> 3,578,345
65,850 Stamps.com, Inc.<F1> 2,741,006
624,650 VitaminShoppe.com, Inc.<F1><F2> 5,699,931
-------------
48,826,674
-------------
INTERNET - NETWORK SECURITY/SOLUTIONS 2.47%
56,550 Breakaway Solutions, Inc.<F1> 4,128,150
14,850 CacheFlow, Inc.<F1> 1,940,709
64,025 Calico Commerce, Inc.<F1> 3,393,325
11,300 Juniper Networks, Inc.<F1> 3,842,000
40,000 Keynote Systems, Inc.<F1> 2,950,000
930,000 MessageMedia, Inc.<F1> 13,078,125
36,400 Viant Corp.<F1> 3,603,600
40,000 WebTrends Corp.<F1> 3,240,000
-------------
36,175,909
-------------
INTERNET - SERVICE PROVIDER/CONTENT 2.52%
7,600 Akamai Technologies, Inc.<F1> 2,489,950
39,900 Chemdex Corp.<F1> 4,428,900
40,800 Engage Technologies, Inc.<F1> 2,448,000
228,400 Exactis.com, Inc.<F1> 5,552,975
60,800 Lifeminders.com, Inc.<F1> 3,511,200
160,000 Lifeminders.com, Inc.<F1><F4> 7,635,200
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INTERNET - SERVICE
PROVIDER/CONTENT 2.52% (CONT'D.)
124,900 LookSmart, Ltd.<F1> $ 3,372,300
51,200 NaviSite, Inc.<F1> 5,120,000
87,300 NetZero, Inc.<F1> 2,351,644
-------------
36,910,169
-------------
MEDICAL - BIOMEDICAL/GENETICS 1.82%
65,750 Abgenix, Inc.<F1> 8,711,875
325,350 Cephalon, Inc.<F1> 11,244,909
34,200 Maxygen, Inc.<F1> 2,428,200
35,900 Millennium Pharmaceuticals, Inc.<F1> 4,379,800
-------------
26,764,784
-------------
MEDICAL - INSTRUMENTS 0.24%
57,650 ArthroCare Corp.<F1> 3,516,650
-------------
MEDICAL - PRODUCTS 0.80%
2,950 Cardiac Pathways Corp.<F1><F3> 2,950,000
70,100 MiniMed, Inc.<F1> 5,134,825
96,300 Zoll Medical Corp.<F1> 3,677,456
-------------
11,762,281
-------------
METAL PROCESSING & FABRICATION 0.11%
67,300 Maverick Tube Corp.<F1> 1,661,469
-------------
OIL & GAS - DRILLING 2.20%
307,950 Global Marine, Inc.<F1> 5,119,669
536,050 Grey Wolf, Inc.<F1> 1,541,144
2,197,200 Key Energy Group, Inc.<F1> 11,397,975
184,550 Precision Drilling Corp.<F1> 4,740,628
408,400 UTI Energy Corp.<F1> 9,418,725
-------------
32,218,141
-------------
OIL & GAS - EXPLORATION 0.14%
63,100 Devon Energy Corp. 2,074,412
-------------
OIL & GAS - FIELD SERVICES 0.90%
198,150 BJ Services Co.<F1> 8,285,147
150,000 Cal Dive International, Inc.<F1> 4,968,750
-------------
13,253,897
-------------
http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER EMERGING GROWTH FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
OIL & GAS - MACHINERY/EQUIPMENT 2.13%
131,550 Cooper Cameron Corp.<F1> $ 6,437,728
119,750 Dril-Quip, Inc.<F1> 3,637,406
208,350 Hanover Compressor Co.<F1> 7,865,213
335,500 National-Oilwell, Inc.<F1> 5,263,156
163,150 Smith International, Inc.<F1> 8,106,516
-------------
31,310,019
-------------
RETAIL - MAIL ORDER/DIRECT 0.24%
193,850 garden.com, Inc.<F1> 1,684,072
222,633 garden.com, Inc.<F1><F4> 1,779,394
-------------
3,463,466
-------------
TELECOMMUNICATIONS - CELLULAR 0.40%
70,400 Tritel, Inc.<F1> 2,230,800
25,250 VoiceStream Wireless Corp.<F1> 3,593,391
-------------
5,824,191
-------------
TELECOMMUNICATIONS - EQUIPMENT 8.33%
56,800 Allegiance Telecom, Inc.<F1> 5,239,800
54,350 Anaren Microwave, Inc.<F1> 2,941,694
65,600 C-COR.net Corp.<F1> 5,026,600
291,610 Copper Mountain Networks, Inc.<F1> 14,215,988
47,655 Corvis Corp.<F1><F3> 3,837,657
39,700 Echostar Communications Corp.<F1> 3,870,750
69,150 Efficient Networks, Inc.<F1> 4,702,200
102,900 E-Tek Dynamics, Inc.<F1> 13,852,913
6,160 Floware Wireless Systems<F1><F3> 2,398,766
64,350 Harmonic Lightwaves, Inc.<F1> 6,109,228
625,000 Netro Corp.<F1><F4> 30,810,648
79,550 Next Level Communications, Inc.<F1> 5,956,306
220,900 NorthPoint Communications Group, Inc.<F1> 5,301,600
66,900 Powerwave Technologies, Inc.<F1> 3,905,288
29,925 Redback Networks, Inc.<F1> 5,311,688
17,900 Sycamore Networks, Inc.<F1> 5,513,200
1,600,000 Vertical Networks, Inc.<F1><F3> 3,200,000
-------------
122,194,326
-------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES 1.51%
23,950 COLT Telecom Group plc<F1> $4,885,800
316,300 Com21, Inc.<F1> 7,096,981
54,950 Illuminet Holdings, Inc.<F1> 3,022,250
33,000 NTL, Inc.<F1> 4,116,750
73,150 Z-Tel Technologies, Inc.<F1> 2,953,431
-------------
22,075,212
-------------
TOTAL COMMON AND PREFERRED STOCKS
(cost $553,596,618) 1,328,800,877
-------------
NUMBER OF
CONTRACTS
- ---------
OPTIONS PURCHASED 1.84%
1,728 Put option on Nasdaq 100 Stock
Index, expiring 1/22/00 @ 3020 2,937,600
1,728 Put option on Nasdaq 100 Stock
Index, expiring 1/22/00 @ 3040 2,851,200
1,875 Put option on S&P 500 Index,
expiring 1/22/00 @ 1415 2,355,469
1,875 Put option on S&P 500 Index,
expiring 1/22/00 @ 1425 2,671,875
2,206 Put option on S&P 500 Index,
expiring 6/1/00 @ 1475 16,200,312
-------------
TOTAL OPTIONS PURCHASED
(cost $63,110,250) 27,016,456
-------------
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS 1.80%
$26,310,992 UMB Bank, n.a.,
Money Market Fiduciary 26,310,992
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $26,310,992) 26,310,992
-------------
TOTAL INVESTMENTS 94.23%
(cost $643,017,860) 1,382,128,325
Other Assets less Liabilities 5.77% 84,698,696
-------------
NET ASSETS 100.00% $1,466,827,021
==============
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER EMERGING GROWTH FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SECURITIES SOLD SHORT
14,350 Ameritrade Holding Corp.<F1> $ 311,216
280,300 Commerce One, Inc.<F1> 55,078,950
43,250 DrKoop.com, Inc.<F1> 513,594
57,600 E-Trade Group, Inc.<F1> 1,504,800
75,750 HomeStore.com, Inc.<F1> 5,624,437
57,100 Knight/Trimark Group, Inc.<F1> 2,626,600
826,300 Nasdaq-100 Shares<F1> 151,006,325
2,800 Rambus, Inc.<F1> 188,825
85,600 Starmedia Network Inc.<F1> 3,429,350
-------------
TOTAL SECURITIES SOLD SHORT
(proceeds $173,484,661) $220,284,097
=============
<F1> Non-income producing
<F2> Affiliated company - see Note 8
<F3> Preferred stock acquired 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.
<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
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MICRO-CAP FUND December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON AND PREFERRED STOCKS 92.69%
COMMERCIAL SERVICES - MISCELLANEOUS 0.48%
40,000 Costar Group, Inc.<F1> $ 1,435,000
-------------
COMPUTER SOFTWARE - DESKTOP 0.27%
15,600 NetIQ Corp.<F1> 812,175
-------------
COMPUTER SOFTWARE - EDUCATION 0.16%
45,000 Tavolo, Inc.<F1><F3> 486,000
-------------
COMPUTER SOFTWARE - ENTERPRISE 20.98%
95,000 Acta Technology, Inc.<F1><F3> 475,000
17,100 Actuate Software Corp.<F1> 733,163
268,250 Ariba, Inc.<F1> 47,580,843
90,000 Banyan Systems Inc.<F1> 1,800,000
15,300 Cysive, Inc.<F1> 1,102,556
61,600 Daleen Technologies, Inc.<F1> 1,347,500
377,239 Eprise Corp.<F1><F3> 580,948
13,000 Event411.com, Inc.<F1><F3> 390,000
70,400 Impresse Corp.<F1><F3> 872,256
10,500 Interwoven, Inc.<F1> 1,277,063
102,550 IntraNet Solutions, Inc.<F1> 3,794,350
34,250 Latitude Communications, Inc.<F1> 894,781
21,450 Lightbridge, Inc.<F1> 595,238
1,438 Reciprocal, Inc.<F1><F3> 653,945
-------------
62,097,643
-------------
COMPUTER SOFTWARE - INTERNET 10.08%
19,450 Accrue Software, Inc.<F1> 1,052,731
31,650 Art Technology Group, Inc.<F1> 4,055,156
10,350 Bluestone Software, Inc.<F1> 1,190,250
54,688 Bluestone Software, Inc.<F1><F4> 5,540,161
40,000 Exodus Communications, Inc.<F1> 3,552,500
99,415 iVillage, Inc.<F1> 2,013,154
120,000 MaMaMedia, Inc.<F1><F3> 648,000
23,400 Netopia, Inc.<F1> 1,270,913
31,730 Onvia.com, Inc.<F1><F3> 435,018
72,500 Preview Systems, Inc.<F1><F4> 3,868,107
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - INTERNET 10.08% (CONT'D.)
56,800 Primus Knowledge Solutions, Inc.<F1> $ 2,573,750
27,000 Proxim, Inc.<F1> 2,970,000
60,000 Screaming Media.Net, Inc.<F1><F3> 672,000
-------------
29,841,740
-------------
COMPUTER SOFTWARE - MEDICAL 4.73%
1,568,300 OnHealth Network Co.<F1><F2> 14,016,681
-------------
COMPUTER SOFTWARE - SECURITY 1.08%
105,450 WatchGuard Technologies, Inc.<F1> 3,189,863
-------------
COMPUTERS - GRAPHICS 0.29%
5,000 Micromuse, Inc.<F1> 850,000
-------------
COMPUTERS - LOCAL NETWORKS 1.96%
40,000 Asyst Technologies, Inc.<F1> 2,622,500
32,150 NetSolve, Inc.<F1> 1,012,725
100,000 Sitara Networks, Inc.<F1><F3> 385,000
330,000 Top Layer Networks, Inc.<F1><F3> 514,800
15,850 Visual Networks, Inc.<F1> 1,256,112
-------------
5,791,137
-------------
COMPUTERS - MEMORY DEVICES 0.79%
270,000 Lexar Media, Inc.<F1><F3> 699,300
40,000 Silicon Storage Technology, Inc.<F1> 1,650,000
-------------
2,349,300
-------------
COMPUTERS - MINI/MICRO 0.71%
285,000 eMachines, Inc.<F1><F3> 1,819,440
3,468 Sun Microsystems, Inc.<F1> 268,553
-------------
2,087,993
-------------
COMPUTERS - RETAIL/WHOLESALE 2.14%
25,900 Emulex Corp.<F1> 2,913,750
60,000 Netegrity, Inc.<F1> 3,416,250
-------------
6,330,000
-------------
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MICRO-CAP FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS - SOFTWARE 3.93%
350,000 Entevo Corp.<F1><F3> $ 525,000
80,266 Phone.com, Inc.<F1> 9,305,916
21,350 SERENA Software, Inc.<F1> 660,516
30,000 Spyglass, Inc.<F1> 1,137,654
-------------
11,629,086
-------------
ELECTRONICS - LASER SYSTEMS/COMPONENTS 0.37%
15,000 Electro Scientific Industries, Inc.<F1> 1,095,000
-------------
ELECTRONICS - MISCELLANEOUS COMPONENTS 2.07%
70,000 Applied Science & Technology<F1> 2,326,401
20,000 Kopin Corporation<F1> 840,000
31,500 RadiSys Corporation<F1> 1,606,500
20,000 RF Micro Devices, Inc.<F1> 1,368,750
-------------
6,141,651
-------------
ELECTRONICS - SEMICONDUCTOR EQUIPMENT 6.87%
86,000 ADE Corp.<F1> 1,419,000
10,850 Caliper Technologies Corp.<F1> 724,238
101,351 Cobalt Networks, Inc.<F1><F4> 9,475,822
70,000 Cohu, Inc. 2,170,000
35,000 Electroglas, Inc.<F1> 888,125
53,450 LTX Corp.<F1> 1,195,943
85,400 Photon Dynamics, Inc.<F1> 3,309,250
34,300 Rudolph Technologies, Inc.<F1> 1,149,050
-------------
20,331,428
-------------
ELECTRONICS - SEMICONDUCTOR MANUFACTURING 4.18%
80,000 Elantec Semiconductor, Inc.<F1> 2,640,000
51,500 Exar Corp.<F1> 3,032,063
140,000 PLX Technology, Inc.<F1> 2,651,250
10,750 QLogic Corp.<F1> 1,718,656
225,000 Sandcraft, Inc.<F1><F3> 555,750
110,000 StorageNetworks, Inc.<F1><F3> 541,200
125,000 Transmeta Corp.<F1><F3> 1,250,000
-------------
12,388,919
-------------
FOOD 0.07%
6,650 Symyx Technologies, Inc.<F1> 199,500
-------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INTERNET - E-COMMERCE 4.27%
34,350 Ebenx, Inc.<F1> $ 1,554,338
78,300 Fatbrain.com, Inc.<F1> 1,962,394
57,124 HomeGrocer.com, Inc.<F1><F3> 662,638
96,400 iGo Corp.<F1> 873,625
90,000 Multex.com, Inc.<F1> 3,386,250
17,850 Netcentives, Inc.<F1> 1,112,278
160,000 Pointshare Corp.<F1><F3> 440,000
86,500 SmarterKids.com, Inc.<F1> 627,125
120,000 SmarterKids.com, Inc.<F1><F4> 724,728
142,050 VitaminShoppe.com, Inc.<F1> 1,296,206
-------------
12,639,582
-------------
INTERNET - NETWORK SECURITY/SOLUTIONS 3.98%
40,000 Braun Consulting, Inc.<F1> 2,860,000
210,000 MessageMedia, Inc.<F1> 2,953,125
40,000 Tumbleweed Communications Corp.<F1> 3,390,000
31,850 WebTrends Corp.<F1> 2,579,850
-------------
11,782,975
-------------
INTERNET - SERVICE PROVIDER/CONTENT 2.11%
30,000 Digital Insight<F1> 1,091,250
27,450 Exactis.com, Inc.<F1> 667,378
13,300 Lifeminders.com, Inc.<F1> 768,075
36,875 Lifeminders.com, Inc.<F1><F4> 1,759,675
19,600 NaviSite, Inc.<F1> 1,960,000
-------------
6,246,378
-------------
MEDICAL - BIOMEDICAL/GENETICS 3.29%
24,500 Abgenix, Inc.<F1> 3,246,250
96,700 Cephalon, Inc.<F1> 3,342,194
100,000 Gene Logic, Inc.<F1> 2,650,000
6,950 Maxygen, Inc.<F1> 493,450
-------------
9,731,894
-------------
MEDICAL - PRODUCTS 1.28%
800 Cardiac Pathways Corp.<F1><F3> 800,000
78,100 Zoll Medical Corp.<F1> 2,982,444
-------------
3,782,444
-------------
METAL PROCESSING & FABRICATION 0.04%
5,150 Maverick Tube Corp.<F1> 127,140
-------------
http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MICRO-CAP FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
OIL & GAS - DRILLING 3.48%
1,150,100 Grey Wolf, Inc.<F1> $ 3,306,538
409,900 Key Energy Group, Inc.<F1> 2,126,356
172,250 Patterson Energy, Inc.<F1> 2,239,250
113,750 UTI Energy Corp.<F1> 2,623,359
-------------
10,295,503
-------------
OIL & GAS - FIELD SERVICES 1.07%
85,050 Cal Dive International, Inc.<F1> 2,817,281
67,500 Horizon Offshore, Inc.<F1> 362,812
-------------
3,180,093
-------------
OIL & GAS - MACHINERY/EQUIPMENT 1.07%
104,650 Dril-Quip, Inc.<F1> 3,178,743
-------------
RESEARCH & DEVELOPMENT 0.54%
60,000 Aurora Biosciences Corp.<F1> 1,590,000
-------------
RETAIL - MAIL ORDER/DIRECT 0.25%
38,100 garden.com, Inc.<F1> 330,994
50,026 garden.com, Inc.<F1><F4> 399,833
-------------
730,827
-------------
TELECOMMUNICATIONS - CELLULAR 0.23%
7,500 Rural Cellular Corp.<F1> 678,750
-------------
TELECOMMUNICATIONS - EQUIPMENT 9.59%
35,000 Adaptive Broadband Corp.<F1> 2,583,438
65,000 Anaren Microwave, Inc.<F1> 3,518,125
53,400 C-COR.net Corp.<F1> 4,091,775
69,674 Copper Mountain Networks, Inc. <F1> 3,396,608
9,625 Corvis Corp.<F1><F3> 775,101
1,540 Floware Wireless Systems<F1><F3> 599,691
10,600 Harmonic Lightwaves, Inc.<F1> 1,006,338
70,000 Natural Microsystems Corp.<F1> 3,276,875
132,857 Netro Corp.<F1><F4> 6,609,901
35,000 Powerwave Technologies, Inc.<F1> 2,043,125
250,000 Vertical Networks, Inc.<F1><F3> 500,000
-------------
28,400,977
-------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES 0.15%
19,200 Com21, Inc.<F1> $ 430,800
-------------
TRANSPORTATION 0.18%
75,000 Trico Marine Services, Inc.<F1> 529,688
-------------
TOTAL COMMON AND PREFERRED STOCKS
(cost $113,248,384) 274,398,910
-------------
NUMBER OF
CONTRACTS
- ---------
OPTIONS PURCHASED 1.83%
358 Put option on Nasdaq 100 Stock
Index, expiring 1/22/00 @ 3020 608,600
358 Put option on Nasdaq 100 Stock
Index, expiring 1/22/00 @ 3040 590,700
387 Put option on S&P 500 Index,
expiring 1/22/00 @ 1415 486,169
387 Put option on S&P 500 Index,
expiring 1/22/00 @ 1425 551,475
433 Put option on S&P 500 Index,
expiring 6/1/00 @ 1475 3,179,844
-------------
TOTAL OPTIONS PURCHASED
(cost $12,887,325) 5,416,788
-------------
TOTAL INVESTMENTS 94.52%
(cost $126,135,709) 279,815,698
Other Assets less Liabilities 5.48% 16,209,997
-------------
NET ASSETS 100.00% $296,025,695
=============
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MICRO-CAP FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SECURITIES SOLD SHORT
3,000 Ameritrade Holding Corp.<F1> $ 65,063
57,850 Commerce One, Inc.<F1> 11,367,525
5,800 DrKoop.com, Inc.<F1> 68,875
11,950 E-Trade Group, Inc.<F1> 312,194
13,300 HomeStore.com, Inc.<F1> 987,525
12,200 Knight/Trimark Group, Inc.<F1> 561,200
162,550 Nasdaq-100 Shares<F1> 29,706,012
650 Rambus, Inc.<F1> 43,834
18,350 Starmedia Network Inc.<F1> 735,147
-------------
TOTAL SECURITIES SOLD SHORT
(proceeds $34,080,588) $43,847,375
=============
<F1> Non-income producing
<F2> Affiliated company - see Note 8
<F3> Preferred stock acquired 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.
<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
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MID-CAP FUND December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON AND PREFERRED STOCKS 72.07%
COMMERCIAL SERVICES - SECURITY/SAFETY 0.23%
1,650 Check Point Software Technologies Ltd.<F1> $ 327,938
-------------
COMPUTER SOFTWARE - DESKTOP 0.55%
6,100 Gemstar International Group Ltd.<F1> 434,625
4,850 Mission Critical Software, Inc.<F1> 339,500
-------------
774,125
-------------
COMPUTER SOFTWARE - EDUCATION 0.13%
2,200 Metasolv Software, Inc.<F1> 179,850
-------------
COMPUTER SOFTWARE - ENTERPRISE 16.46%
92,000 Ariba, Inc.<F1> 16,318,500
5,900 BindView Development Corp.<F1> 293,156
4,700 Cysive, Inc.<F1> 338,694
1,400 E.piphany, Inc.<F1> 312,375
2,500 Informatica Corp.<F1> 265,938
47,114 Interwoven, Inc.<F1><F4> 4,837,755
15,100 IntraNet Solutions, Inc.<F1> 558,700
16,450 Latitude Communications, Inc.<F1> 429,756
-------------
23,354,874
-------------
COMPUTER SOFTWARE - INTERNET 8.26%
1,250 Accrue Software, Inc.<F1> 67,656
4,550 Active Software, Inc.<F1> 418,600
4,700 AGENCY.COM Ltd.<F1> 239,700
1,900 Agile Software Corp.<F1> 412,745
4,400 Art Technology Group, Inc.<F1> 563,750
6,300 Bluestone Software, Inc.<F1> 724,500
1,850 C-Bridge Internet Solutions, Inc.<F1> 89,956
19,350 Covad Communications Group, Inc.<F1> 1,082,391
4,000 Exodus Communications, Inc.<F1> 355,250
2,700 F5 Networks, Inc.<F1> 307,800
10,050 iManage, Inc.<F1> 322,856
78,950 iVillage, Inc.<F1> 1,598,738
1,600 Kana Communications, Inc.<F1> 328,000
1,250 Liberate Technologies, Inc.<F1> 321,250
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - INTERNET 8.26% (CONT'D.)
1,700 OnDisplay, Inc.<F1> $ 154,488
3,200 Portal Software, Inc.<F1> 329,200
30,000 Preview Systems, Inc.<F1> 1,946,250
10,850 Primus Knowledge Solutions, Inc.<F1> 491,641
20,400 Rhythms NetConnections, Inc.<F1> 632,400
2,550 Silknet Software, Inc.<F1> 422,663
3,000 SilverStream Software, Inc.<F1> 357,000
1,750 Vignette Corp.<F1> 285,250
1,150 Vitria Technology, Inc.<F1> 269,100
-------------
11,721,184
-------------
COMPUTER SOFTWARE - MEDICAL 5.66%
898,000 OnHealth Network Co.<F1><F2> 8,025,875
-------------
COMPUTER SOFTWARE - SECURITY 0.57%
4,550 ISS Group, Inc.<F1> 323,619
2,550 VeriSign, Inc.<F1> 486,891
-------------
810,510
-------------
COMPUTERS - GRAPHICS 0.22%
1,850 Micromuse, Inc.<F1> 314,500
-------------
COMPUTERS - LOCAL NETWORKS 1.79%
2,450 Brocade Communications Systems, Inc.<F1> 433,650
2,850 Citrix Systems, Inc.<F1> 350,550
9,100 Extreme Networks, Inc.<F1> 759,850
1,950 Foundry Networks, Inc.<F1> 588,291
5,200 Visual Networks, Inc.<F1> 412,100
-------------
2,544,441
-------------
COMPUTERS - MEMORY DEVICES 0.87%
2,450 ARM Holdings plc<F1> 469,175
4,300 Network Appliances, Inc.<F1> 357,169
2,900 VERITAS Software Corp.<F1> 415,063
-------------
1,241,407
-------------
COMPUTERS - MINI/MICRO 2.21%
435,000 eMachines, Inc.<F1><F3> 2,777,040
7,350 Rational Software Corp.<F1> 361,069
-------------
3,138,109
-------------
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MID-CAP FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS - RETAIL/WHOLESALE 0.96%
8,700 Emulex Corp.<F1> $ 978,750
6,650 Netegrity, Inc.<F1> 378,634
-------------
1,357,384
-------------
COMPUTERS - SERVICES 0.54%
4,400 InterNAP Network Services Corp.<F1> 761,200
-------------
COMPUTERS - SOFTWARE 3.05%
1,950 Allaire Corp.<F1> 285,309
5,300 BEA Systems, Inc.<F1> 370,669
2,800 BroadVision, Inc.<F1> 476,175
3,450 Mercury Interactive Corp.<F1> 372,384
19,300 Phone.com, Inc.<F1> 2,237,594
2,150 RealNetworks, Inc.<F1> 258,672
3,900 Siebel Systems, Inc.<F1> 327,600
-------------
4,328,403
-------------
ELECTRICAL PRODUCTS 0.41%
12,200 Power Integrations, Inc.<F1> 584,838
-------------
ELECTRONICS - LASER SYSTEMS/COMPONENTS 0.40%
12,300 Cymer, Inc.<F1> 565,800
-------------
ELECTRONICS - MISCELLANEOUS COMPONENTS 0.53%
10,950 RF Micro Devices, Inc.<F1> 749,391
-------------
ELECTRONICS - SEMICONDUCTOR EQUIPMENT 4.18%
5,650 ASM Lithography Holding N.V.<F1> 642,688
25,000 Cobalt Networks, Inc.<F1> 2,709,375
9,100 JDS Uniphase Corp.<F1> 1,467,944
49,550 LTX Corp.<F1> 1,108,681
-------------
5,928,688
-------------
ELECTRONICS - SEMICONDUCTOR MANUFACTURING 5.16%
3,900 Applied Micro Circuits Corp.<F1> 496,275
1,850 Broadcom Corp.<F1> 503,894
6,200 Conexant Systems, Inc.<F1> 411,525
5,000 Globespan, Inc.<F1> 325,625
2,250 PMC-Sierra, Inc.<F1> 360,703
5,750 QLogic Corp.<F1> 919,281
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
ELECTRONICS - SEMICONDUCTOR
MANUFACTURING 5.16% (CONT'D.)
5,200 SDL, Inc.<F1> $1,133,600
150,000 Transmeta Corp.<F1><F3> 1,500,000
19,450 TranSwitch Corp.<F1> 1,411,341
5,100 Vitesse Semiconductor Corp.<F1> 267,431
-------------
7,329,675
-------------
ENERGY - SERVICES 1.43%
22,300 Ensco International, Inc. 510,112
24,350 Nabors Industries, Inc.<F1> 753,328
19,250 Weatherford International, Inc.<F1> 768,797
-------------
2,032,237
-------------
FINANCE - INVESTMENT BROKER 0.60%
9,000 The Goldman Sachs Group, Inc. 847,687
-------------
INTERNET - E-COMMERCE 1.38%
9,750 eToys, Inc.<F1> 255,937
6,850 GetThere.com, Inc.<F1> 275,712
37,718 HomeGrocer.com, Inc.<F1><F3> 437,529
22,050 iGo Corp.<F1> 199,828
16,500 PlanetRX.com, Inc.<F1> 239,250
3,400 Scient Corp.<F1> 293,887
6,050 Stamps.com, Inc.<F1> 251,831
-------------
1,953,974
-------------
INTERNET - NETWORK SECURITY/SOLUTIONS 1.32%
4,250 Breakaway Solutions, Inc.<F1> 310,250
1,350 CacheFlow, Inc.<F1> 176,428
6,000 Calico Commerce, Inc.<F1> 318,000
1,050 Juniper Networks, Inc.<F1> 357,000
900 Keynote Systems, Inc.<F1> 66,375
3,350 Viant Corp.<F1> 331,650
3,850 WebTrends Corp.<F1> 311,850
-------------
1,871,553
-------------
INTERNET - SERVICE PROVIDER/CONTENT 1.55%
800 Akamai Technologies, Inc.<F1> 262,100
3,700 Chemdex Corp.<F1> 410,700
3,850 Engage Technologies, Inc.<F1> 231,000
21,150 Exactis.com, Inc.<F1> 514,209
11,600 LookSmart, Ltd.<F1> 313,200
4,750 NaviSite, Inc.<F1> 475,000
-------------
2,206,209
-------------
http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MID-CAP FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
MEDICAL - BIOMEDICAL/GENETICS 0.33%
3,800 Millennium Pharmaceuticals, Inc.<F1> $ 463,600
-------------
MEDICAL - GENERIC DRUG 0.19%
2,000 Genentech, Inc.<F1> 269,000
-------------
MEDICAL - PRODUCTS 0.51%
6,600 MiniMed, Inc.<F1> 483,450
6,450 Zoll Medical Corp.<F1> 246,309
-------------
729,759
-------------
OIL & GAS - DRILLING 0.89%
28,450 Global Marine, Inc.<F1> 472,981
4,500 Key Energy Group, Inc.<F1> 23,344
18,750 Precision Drilling Corp.<F1> 481,641
12,350 UTI Energy Corp.<F1> 284,822
-------------
1,262,788
-------------
OIL & GAS - EXPLORATION 0.18%
8,000 Devon Energy Corp. 263,000
-------------
OIL & GAS - FIELD SERVICES 0.54%
18,300 BJ Services Co.<F1> 765,169
-------------
OIL & GAS - MACHINERY/EQUIPMENT 1.84%
12,400 Cooper Cameron Corp.<F1> 606,825
19,300 Hanover Compressor Co.<F1> 728,575
33,900 National-Oilwell, Inc.<F1> 531,806
15,050 Smith International, Inc.<F1> 747,797
-------------
2,615,003
-------------
RETAIL - MAIL ORDER/DIRECT 0.04%
6,850 garden.com, Inc.<F1> 59,509
-------------
TELECOMMUNICATIONS - CELLULAR 0.45%
6,500 Tritel, Inc.<F1> 205,969
3,050 VoiceStream Wireless Corp.<F1> 434,053
-------------
640,022
-------------
TELECOMMUNICATIONS - EQUIPMENT 7.17%
6,100 Allegiance Telecom, Inc.<F1> 562,725
26,150 Copper Mountain Networks, Inc.<F1> 1,274,812
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT 7.17% (CONT'D.)
3,650 EchoStar Communications Corp.<F1> $ 355,875
6,550 Efficient Networks, Inc.<F1> 445,400
9,650 E-Tek Dynamics, Inc.<F1> 1,299,131
6,000 Harmonic Lightwaves, Inc.<F1> 569,625
18,000 Netro Corp.<F1> 918,000
50,000 Netro Corp.<F1><F4> 2,323,100
7,250 Next Level Communications, Inc.<F1> 542,844
20,400 NorthPoint Communications Group, Inc.<F1> 489,600
6,700 Powerwave Technologies, Inc.<F1> 391,112
2,800 Redback Networks, Inc.<F1> 497,000
1,650 Sycamore Networks, Inc.<F1> 508,200
-------------
10,177,424
-------------
TELECOMMUNICATIONS - SERVICES 1.47%
2,250 COLT Telecom Group plc<F1> 459,000
29,750 Com21, Inc.<F1> 667,516
5,500 Illuminet Holdings, Inc.<F1> 302,500
3,050 NTL, Inc.<F1> 380,487
6,700 Z-Tel Technologies, Inc.<F1> 270,512
-------------
2,080,015
-------------
TOTAL COMMON AND PREFERRED STOCKS
(cost $58,886,877) 102,275,141
-------------
NUMBER OF
CONTRACTS
- ---------
OPTIONS PURCHASED 1.74%
148 Put option on Nasdaq 100 Stock Index,
expiring 1/22/00 @ 3020 251,600
148 Put option on Nasdaq 100 Stock Index,
expiring 1/22/00 @ 3040 244,200
160 Put option on S&P 500 Index,
expiring 1/22/00 @ 1415 201,000
160 Put option on S&P 500 Index,
expiring 1/22/00 @ 1425 228,000
211 Put option on S&P 500 Index,
expiring 6/1/00 @ 1475 1,549,531
-------------
TOTAL OPTIONS PURCHASED
(cost $5,567,337) 2,474,331
-------------
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER MID-CAP FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 5.79%
$8,216,118 UMB Bank, n.a.,
Money Market Fiduciary $ 8,216,118
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $8,216,118) 8,216,118
-------------
TOTAL INVESTMENTS 79.60%
(cost $72,670,332) 112,965,590
Other Assets less Liabilities 20.40% 28,950,673
-------------
NET ASSETS 100.00% $141,916,263
=============
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SECURITIES SOLD SHORT
1,250 Ameritrade Holding Corp.<F1> $ 27,109
6,500 DrKoop.com, Inc.<F1> 77,187
4,950 E-Trade Group, Inc.<F1> 129,319
9,100 HomeStore.com, Inc.<F1> 675,675
5,800 Knight/Trimark Group, Inc.<F1> 266,800
79,450 Nasdaq-100 Shares<F1> 14,519,488
400 Rambus, Inc.<F1> 26,975
8,850 Starmedia Network Inc.<F1> 354,553
-------------
TOTAL SECURITIES SOLD SHORT
(proceeds $15,895,041) $16,077,106
=============
<F1> Non-income producing
<F2> Affiliated company - see Note 8
<F3> Preferred stock acquired 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.
<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
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER POST-VENTURE FUND December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON AND PREFERRED STOCKS 67.24%
COMMERCIAL SERVICES - SECURITY/SAFETY 0.22%
4,300 Check Point Software Technologies Ltd.<F1> $ 854,625
-------------
COMPUTER SOFTWARE - DESKTOP 0.64%
9,500 Gemstar International Group Ltd.<F1> 676,875
12,900 Mission Critical Software, Inc.<F1> 903,000
17,900 NetIQ Corp.<F1> 931,919
-------------
2,511,794
-------------
COMPUTER SOFTWARE - EDUCATION 0.26%
5,250 Metasolv Software, Inc.<F1> 429,187
55,000 Tavolo, Inc.<F1><F3> 594,000
-------------
1,023,187
-------------
COMPUTER SOFTWARE - ENTERPRISE 11.58%
120,000 Acta Technology, Inc.<F1><F3> 600,000
20,700 Actuate Software Corp.<F1> 887,513
152,100 Ariba, Inc.<F1> 26,978,738
12,850 BindView Development Corp.<F1> 638,484
16,200 Cysive, Inc.<F1> 1,167,413
24,300 Daleen Technologies, Inc.<F1> 531,563
3,750 E.piphany, Inc.<F1> 836,719
220,375 Eprise Corp.<F1><F3> 339,378
20,000 Event411.Com, Inc.<F1><F3> 600,000
48,600 Impresse Corp.<F1><F3> 602,154
6,050 Informatica Corp.<F1> 643,569
1,250 Interwoven, Inc.<F1> 152,031
65,960 Interwoven, Inc.<F1><F4> 6,772,898
67,600 IntraNet Solutions, Inc.<F1> 2,501,200
41,150 Latitude Communications, Inc.<F1> 1,075,043
19,150 Lightbridge, Inc.<F1> 531,412
993 Reciprocal, Inc.<F1><F3> 451,577
-------------
45,309,692
-------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - INTERNET 10.34%
13,950 Accrue Software, Inc.<F1> $ 755,044
12,050 Active Software, Inc.<F1> 1,108,600
11,600 AGENCY.COM Ltd.<F1> 591,600
4,800 Agile Software Corp.<F1> 1,042,725
11,650 Art Technology Group, Inc.<F1> 1,492,656
15,100 Bluestone Software, Inc.<F1> 1,736,500
79,687 Bluestone Software, Inc.<F1><F4> 8,072,806
4,850 C-Bridge Internet Solutions, Inc.<F1> 235,831
47,950 Covad Communications Group, Inc.<F1> 2,682,203
10,600 Exodus Communications, Inc.<F1> 941,412
6,500 F5 Networks, Inc.<F1> 741,000
24,150 iManage, Inc.<F1> 775,819
151,486 iVillage, Inc.<F1> 3,067,591
4,250 Kana Communications, Inc.<F1> 871,250
3,250 Liberate Technologies, Inc.<F1> 835,250
155,000 MaMaMedia, Inc.<F1><F3> 837,000
10,000 Netopia, Inc.<F1> 543,125
4,500 OnDisplay, Inc.<F1> 408,937
45,977 Onvia.com, Inc.<F1><F3> 630,345
8,250 Portal Software, Inc.<F1> 848,719
2,900 Preview Systems, Inc.<F1> 188,138
100,000 Preview Systems, Inc.<F1><F4> 5,335,320
29,350 Primus Knowledge Solutions, Inc.<F1> 1,329,922
47,250 Rhythms NetConnections, Inc.<F1> 1,464,750
55,000 Screaming Media.Net, Inc.<F1><F3> 616,000
6,150 Silknet Software, Inc.<F1> 1,019,363
7,200 SilverStream Software, Inc.<F1> 856,800
4,150 Vignette Corp.<F1> 676,450
3,150 Vitria Technology, Inc.<F1> 737,100
-------------
40,442,256
-------------
COMPUTER SOFTWARE - MEDICAL 3.61%
1,579,000 OnHealth Network Co.<F1><F2> 14,112,313
-------------
COMPUTER SOFTWARE - SECURITY 0.78%
9,600 ISS Group, Inc.<F1> 682,800
6,750 VeriSign, Inc.<F1> 1,288,828
35,850 WatchGuard Technologies, Inc.<F1> 1,084,462
-------------
3,056,090
-------------
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER POST-VENTURE FUND (CONT'D.) December 31, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS - GRAPHICS 0.21%
4,900 Micromuse, Inc.<F1> $ 833,000
-------------
COMPUTERS - LOCAL NETWORKS 2.14%
6,400 Brocade Communications Systems, Inc.<F1> 1,132,800
6,500 Citrix Systems, Inc.<F1> 799,500
24,550 Extreme Networks, Inc.<F1> 2,049,925
5,150 Foundry Networks, Inc.<F1> 1,553,690
32,250 NetSolve, Inc.<F1> 1,015,875
110,000 Sitara Networks, Inc.<F1><F3> 423,500
290,000 Top Layer Networks, Inc.<F1><F3> 452,400
11,700 Visual Networks, Inc.<F1> 927,225
-------------
8,354,915
-------------
COMPUTERS - MEMORY DEVICES 1.00%
6,550 ARM Holdings plc<F1> 1,254,325
230,000 Lexar Media, Inc.<F1><F3> 595,700
11,500 Network Appliances, Inc.<F1> 955,219
7,750 VERITAS Software Corp.<F1> 1,109,219
-------------
3,914,463
-------------
COMPUTERS - MINI/MICRO 0.59%
240,000 eMachines, Inc.<F1><F3> 1,532,160
14,400 Rational Software Corp.<F1> 707,400
692 Sun Microsystems, Inc.<F1> 53,587
-------------
2,293,147
-------------
COMPUTERS - RETAIL/WHOLESALE 0.90%
23,250 Emulex Corp.<F1> 2,615,625
15,600 Netegrity, Inc.<F1> 888,225
-------------
3,503,850
-------------
COMPUTERS - SERVICES 0.52%
11,850 InterNAP Network Services Corp.<F1> 2,050,050
-------------
COMPUTERS - SOFTWARE 3.44%
5,150 Allaire Corp.<F1> 753,509
14,200 BEA Systems, Inc.<F1> 993,113
5,550 BroadVision, Inc.<F1> 943,847
330,000 Entevo Corp.<F1><F3> 495,000
9,100 Mercury Interactive Corp.<F1> 982,231
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS - SOFTWARE 3.44% (CONT'D.)
61,120 Phone.com, Inc.<F1> $ 7,086,100
5,700 RealNetworks, Inc.<F1> 685,781
24,400 SERENA Software, Inc.<F1> 754,875
9,200 Siebel Systems, Inc.<F1> 772,800
-------------
13,467,256
-------------
ELECTRICAL PRODUCTS 0.33%
26,650 Power Integrations, Inc.<F1> 1,277,534
-------------
ELECTRONICS - LASER SYSTEMS/COMPONENTS 0.35%
29,600 Cymer, Inc.<F1> 1,361,600
-------------
ELECTRONICS - MISCELLANEOUS COMPONENTS 0.46%
26,300 RF Micro Devices, Inc.<F1> 1,799,906
-------------
ELECTRONICS - SEMICONDUCTOR EQUIPMENT 6.16%
14,000 ASM Lithography Holding N.V.<F1> 1,592,500
20,850 Caliper Technologies Corp.<F1> 1,391,737
141,892 Cobalt Networks, Inc.<F1><F4> 13,266,206
22,600 JDS Uniphase Corp.<F1> 3,645,663
132,650 LTX Corp.<F1> 2,968,044
6,100 Photon Dynamics, Inc.<F1> 236,375
29,750 Rudolph Technologies, Inc.<F1> 996,625
-------------
24,097,150
-------------
ELECTRONICS - SEMICONDUCTOR MANUFACTURING 4.27%
10,500 Applied Micro Circuits Corp.<F1> 1,336,125
4,700 Broadcom Corp.<F1> 1,280,163
13,100 Conexant Systems, Inc.<F1> 869,512
1,100 Exar Corp.<F1> 64,762
12,100 Globespan, Inc.<F1> 788,013
5,050 PMC-Sierra, Inc.<F1> 809,578
15,550 QLogic Corp.<F1> 2,486,056
195,000 Sandcraft, Inc.<F1><F3> 481,650
11,900 SDL, Inc.<F1> 2,594,200
150,000 StorageNetworks, Inc.<F1><F3> 738,000
45,000 TranSwitch Corp.<F1> 3,265,313
125,000 Transmeta Corp.<F1><F3> 1,250,000
14,500 Vitesse Semiconductor Corp.<F1> 760,344
-------------
16,723,716
-------------
http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER POST-VENTURE FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
ENERGY - SERVICES 0.05%
6,350 Nabors Industries, Inc.<F1> $ 196,453
-------------
FOOD 0.04%
5,550 Symyx Technologies, Inc.<F1> 166,500
-------------
INTERNET - E-COMMERCE 2.78%
40,650 Ebenx, Inc.<F1> 1,839,413
24,950 eToys, Inc.<F1> 654,937
30,450 Fatbrain.com, Inc.<F1> 763,153
16,500 GetThere.com, Inc.<F1> 664,125
33,370 HomeGrocer.com, Inc.<F1><F3> 387,092
93,250 iGo Corp.<F1> 845,078
13,450 Netcentives, Inc.<F1> 838,103
37,900 PlanetRX.com, Inc.<F1> 549,550
140,000 Pointshare Corp.<F1><F3> 385,000
8,900 Scient Corp.<F1> 769,294
82,150 SmarterKids.com, Inc.<F1> 595,587
135,000 SmarterKids.com, Inc.<F1><F4> 815,319
15,900 Stamps.com, Inc.<F1> 661,837
123,400 VitaminShoppe.com, Inc.<F1> 1,126,025
-------------
10,894,513
-------------
INTERNET - NETWORK SECURITY/SOLUTIONS 2.03%
12,550 Breakaway Solutions, Inc.<F1> 916,150
2,850 CacheFlow, Inc.<F1> 372,459
14,350 Calico Commerce, Inc.<F1> 760,550
2,750 Juniper Networks, Inc.<F1> 935,000
9,450 Keynote Systems, Inc.<F1> 696,938
180,000 MessageMedia, Inc.<F1> 2,531,250
8,950 Viant Corp.<F1> 886,050
10,300 WebTrends Corp.<F1> 834,300
-------------
7,932,697
-------------
INTERNET - SERVICE PROVIDER/CONTENT 2.11%
1,400 Akamai Technologies, Inc.<F1> 458,675
9,300 Chemdex Corp.<F1> 1,032,300
9,250 Engage Technologies, Inc.<F1> 555,000
54,500 Exactis.com, Inc.<F1> 1,325,031
11,500 Lifeminders.com, Inc.<F1> 664,125
34,063 Lifeminders.com, Inc.<F1><F4> 1,625,462
31,350 LookSmart, Ltd.<F1> 846,450
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INTERNET - SERVICE
PROVIDER/CONTENT 2.11% (CONT'D.)
12,600 NaviSite, Inc.<F1> $1,260,000
17,600 NetZero, Inc.<F1> 474,100
-------------
8,241,143
-------------
MEDICAL - BIOMEDICAL/GENETICS 1.53%
16,150 Abgenix, Inc.<F1> 2,139,875
62,200 Cephalon, Inc.<F1> 2,149,788
8,550 Maxygen, Inc.<F1> 607,050
8,850 Millennium Pharmaceuticals, Inc.<F1> 1,079,700
-------------
5,976,413
-------------
MEDICAL - INSTRUMENTS 0.23%
14,550 ArthroCare Corp.<F1> 887,550
-------------
MEDICAL - PRODUCTS 0.68%
700 Cardiac Pathways Corp.<F1><F3> 700,000
16,200 MiniMed, Inc.<F1> 1,186,650
20,250 Zoll Medical Corp.<F1> 773,297
-------------
2,659,947
-------------
METAL PROCESSING & FABRICATION 0.03%
4,350 Maverick Tube Corp.<F1> 107,390
-------------
OIL & GAS - DRILLING 0.75%
551,350 Key Energy Group, Inc.<F1> 2,860,128
4,000 UTI Energy Corp.<F1> 92,250
-------------
2,952,378
-------------
OIL & GAS - FIELD SERVICES 0.34%
40,700 Cal Dive International, Inc.<F1> 1,348,188
-------------
OIL & GAS - MACHINERY/EQUIPMENT 0.23%
29,100 Dril-Quip, Inc.<F1> 883,913
-------------
RETAIL - MAIL ORDER/DIRECT 0.18%
65,600 garden.com, Inc.<F1> 569,900
15,797 garden.com, Inc.<F1><F4> 126,258
-------------
696,158
-------------
TELECOMMUNICATIONS - CELLULAR 0.31%
17,300 Tritel, Inc.<F1> 548,194
4,750 VoiceStream Wireless Corp.<F1> 675,984
-------------
1,224,178
-------------
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER POST-VENTURE FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT 6.83%
14,200 Allegiance Telecom, Inc.<F1> $ 1,309,950
6,450 Anaren Microwave, Inc.<F1> 349,106
16,500 C-COR.net Corp.<F1> 1,264,313
64,130 Copper Mountain Networks, Inc.<F1> 3,126,337
13,654 Corvis Corp.<F1><F3> 1,099,557
9,750 EchoStar Communications Corp.<F1> 950,625
17,500 Efficient Networks, Inc.<F1> 1,190,000
23,750 E-Tek Dynamics, Inc.<F1> 3,197,344
1,335 Floware Wireless Systems<F1><F3> 519,862
15,400 Harmonic Lightwaves, Inc.<F1> 1,462,038
120,000 Netro Corp.<F1><F4> 5,716,439
17,650 Next Level Communications, Inc.<F1> 1,321,544
45,850 NorthPoint Communications Group, Inc.<F1> 1,100,400
17,200 Powerwave Technologies, Inc.<F1> 1,004,050
7,500 Redback Networks, Inc.<F1> 1,331,250
3,450 Sycamore Networks, Inc.<F1> 1,062,600
350,000 Vertical Networks, Inc.<F1><F3> 700,000
-------------
26,705,415
-------------
TELECOMMUNICATIONS - SERVICES 1.32%
5,500 COLT Telecom Group plc<F1> 1,122,000
75,900 Com21, Inc.<F1> 1,703,006
11,100 Illuminet Holdings, Inc.<F1> 610,500
8,100 NTL, Inc.<F1> 1,010,475
18,250 Z-Tel Technologies, Inc.<F1> 736,844
-------------
5,182,825
-------------
TOTAL COMMON AND PREFERRED STOCKS
(cost $126,621,870) 263,042,205
-------------
NUMBER
OF CONTRACTS VALUE
- --------------------------------------------------------------------------------
OPTIONS PURCHASED 1.69%
395 Put option on Nasdaq 100 Stock
Index, expiring 1/22/00 @ 3020 $ 671,500
395 Put option on Nasdaq 100 Stock
Index, expiring 1/22/00 @ 3040 651,750
427 Put option on S&P 500 Index,
expiring 1/22/00 @ 1415 536,419
427 Put option on S&P 500 Index,
expiring 1/22/00 @ 1425 608,475
566 Put option on S&P 500 Index,
expiring 6/1/00 @ 1475 4,156,562
-------------
TOTAL OPTIONS PURCHASED
(cost $14,879,856) 6,624,706
-------------
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS 11.44%
$ 44,757,758 UMB Bank, n.a.,
Money Market Fiduciary 44,757,758
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $44,757,758) 44,757,758
-------------
TOTAL INVESTMENTS 80.37%
(cost $186,259,484) 314,424,669
Other Assets less Liabilities 19.63% 76,799,126
-------------
NET ASSETS 100.00% $391,223,795
=============
http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER POST-VENTURE FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SECURITIES SOLD SHORT
3,300 Ameritrade Holding Corp.<F1> $ 71,569
11,650 DrKoop.com, Inc.<F1> 138,344
13,150 E-Trade Group, Inc.<F1> 343,544
11,550 HomeStore.com, Inc.<F1> 857,587
12,900 Knight/Trimark Group, Inc.<F1> 593,400
212,500 Nasdaq-100 Shares<F1> 38,834,375
600 Rambus, Inc.<F1> 40,462
19,250 Starmedia Network Inc.<F1> 771,203
-------------
TOTAL SECURITIES SOLD SHORT
(proceeds $41,615,276) $41,650,484
=============
<F1> Non-income producing
<F2> Affiliated company - see Note 8
<F3> Preferred stock acquired 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.
<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
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER TECHNOLOGY FUND December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON AND PREFERRED STOCKS 75.07%
COMMERCIAL SERVICES - SECURITY/SAFETY 0.22%
4,400 Check Point Software
Technologies Ltd.<F1> $ 874,500
-------------
COMPUTER SOFTWARE - DESKTOP 0.61%
10,000 Gemstar International Group Ltd.<F1> 712,500
13,050 Mission Critical Software, Inc.<F1> 913,500
15,600 NetIQ Corp.<F1> 812,175
-------------
2,438,175
-------------
COMPUTER SOFTWARE - EDUCATION 0.24%
4,950 Metasolv Software, Inc.<F1> 404,663
50,000 Tavolo, Inc.<F1><F3> 540,000
-------------
944,663
-------------
COMPUTER SOFTWARE - ENTERPRISE 10.95%
95,000 Acta Technology, Inc.<F1><F3> 475,000
21,500 Actuate Software Corp.<F1> 921,813
141,200 Ariba, Inc.<F1> 25,045,350
20,000 BMC Software, Inc.<F1> 1,598,750
12,850 BindView Development Corp.<F1> 638,484
15,750 Cysive, Inc.<F1> 1,134,984
23,850 Daleen Technologies, Inc.<F1> 521,719
3,850 E.piphany, Inc.<F1> 859,031
322,293 Eprise Corp.<F1><F3> 496,331
16,000 Event411.Com, Inc.<F1><F3> 480,000
57,300 Impresse Corp.<F1><F3> 709,947
5,700 Informatica Corp.<F1> 606,338
1,250 Interwoven, Inc.<F1> 152,031
56,537 Interwoven, Inc.<F1><F4> 5,805,361
65,300 IntraNet Solutions, Inc.<F1> 2,416,100
39,450 Latitude Communications, Inc.<F1> 1,030,631
19,350 Lightbridge, Inc.<F1> 536,963
1,171 Reciprocal, Inc.<F1><F3> 532,524
-------------
43,961,357
-------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - INTERNET 9.30%
11,550 Accrue Software, Inc.<F1> $ 625,144
12,175 Active Software, Inc.<F1> 1,120,100
10,850 AGENCY.COM Ltd.<F1> 553,350
5,000 Agile Software Corp.<F1> 1,086,172
11,750 Art Technology Group, Inc.<F1> 1,505,469
14,850 Bluestone Software, Inc.<F1> 1,707,750
67,188 Bluestone Software, Inc.<F1><F4> 6,806,483
4,900 C-Bridge Internet Solutions, Inc.<F1> 238,263
46,050 Covad Communications Group, Inc.<F1> 2,575,922
10,700 Exodus Communications, Inc.<F1> 950,294
6,150 F5 Networks, Inc.<F1> 701,100
22,850 iManage, Inc.<F1> 734,056
151,244 iVillage, Inc.<F1> 3,062,691
4,300 Kana Communications, Inc.<F1> 881,500
3,300 Liberate Technologies, Inc.<F1> 848,100
120,000 MaMaMedia, Inc.<F1><F3> 648,000
8,350 Netopia, Inc.<F1> 453,509
4,550 OnDisplay, Inc.<F1> 413,481
47,918 Onvia.Com, Inc.<F1><F3> 656,956
8,100 Portal Software, Inc.<F1> 833,288
2,700 Preview Systems, Inc.<F1> 175,162
80,000 Preview Systems, Inc.<F1><F4> 4,268,256
28,625 Primus Knowledge Solutions, Inc.<F1> 1,297,070
45,350 Rhythms NetConnections, Inc.<F1> 1,405,850
50,000 Screaming Media.Net, Inc.<F1><F3> 560,000
6,100 Silknet Software, Inc.<F1> 1,011,075
6,800 SilverStream Software, Inc.<F1> 809,200
4,000 Vignette Corp.<F1> 652,000
3,200 Vitria Technology, Inc.<F1> 748,800
-------------
37,329,041
-------------
COMPUTER SOFTWARE - MEDICAL 3.24%
1,453,000 OnHealth Network Co.<F1><F2> 12,986,187
-------------
COMPUTER SOFTWARE - SECURITY 0.75%
9,900 ISS Group, Inc.<F1> 704,138
6,800 VeriSign, Inc.<F1> 1,298,375
33,750 WatchGuard Technologies, Inc.<F1> 1,020,937
-------------
3,023,450
-------------
http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER TECHNOLOGY FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS - GRAPHICS 0.23%
5,000 Micromuse, Inc.<F1> $ 850,000
2,000 Xilinx, Inc.<F1> 90,937
-------------
940,937
-------------
COMPUTERS - LOCAL NETWORKS 3.25%
6,300 Brocade Communications
Systems, Inc.<F1> 1,115,100
50,000 Cisco Systems, Inc.<F1> 5,356,250
4,500 Citrix Systems, Inc.<F1> 553,500
23,600 Extreme Networks, Inc.<F1> 1,970,600
5,250 Foundry Networks, Inc.<F1> 1,583,859
31,200 NetSolve, Inc.<F1> 982,800
85,000 Sitara Networks, Inc.<F1><F3> 327,250
205,000 Top Layer Networks, Inc.<F1><F3> 319,800
10,750 Visual Networks, Inc.<F1> 851,937
-------------
13,061,096
-------------
COMPUTERS - MEMORY DEVICES 2.32%
6,400 ARM Holdings plc<F1> 1,225,600
50,000 EMC Corp.<F1> 5,462,500
210,000 Lexar Media, Inc.<F1><F3> 543,900
11,550 Network Appliances, Inc.<F1> 959,372
7,825 VERITAS Software Corp.<F1> 1,119,953
-------------
9,311,325
-------------
COMPUTERS - MINI/MICRO 2.17%
15,000 Dell Computer Corp.<F1> 765,000
220,000 eMachines, Inc.<F1><F3> 1,404,480
14,850 Rational Software Corp.<F1> 729,506
75,000 Sun Microsystems, Inc.<F1> 5,807,812
-------------
8,706,798
-------------
COMPUTERS - RETAIL/WHOLESALE 0.89%
23,600 Emulex Corp.<F1> 2,655,000
15,950 Netegrity, Inc.<F1> 908,153
-------------
3,563,153
-------------
COMPUTERS - SERVICES 0.89%
20,000 America Online, Inc.<F1> 1,508,750
12,000 InterNAP Network Services Corp.<F1> 2,076,000
-------------
3,584,750
-------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS - SOFTWARE 5.43%
5,250 Allaire Corp.<F1> $ 768,141
14,300 BEA Systems, Inc.<F1> 1,000,106
5,400 BroadVision, Inc.<F1> 918,338
50,000 Compuware Corp.<F1> 1,862,500
300,000 Entevo Corp.<F1><F3> 450,000
50,000 J.D. Edwards & Co.<F1> 1,493,750
8,950 Mercury Interactive Corp.<F1> 966,041
50,000 Microsoft Corp.<F1> 5,837,500
54,213 Phone.com, Inc.<F1> 6,285,358
5,750 RealNetworks, Inc.<F1> 691,797
22,875 SERENA Software, Inc.<F1> 707,695
9,800 Siebel Systems, Inc.<F1> 823,200
-------------
21,804,426
-------------
ELECTRICAL PRODUCTS 0.32%
26,600 Power Integrations, Inc.<F1> 1,275,138
-------------
ELECTRONICS - LASER SYSTEMS/COMPONENTS 0.32%
28,000 Cymer, Inc.<F1> 1,288,000
-------------
ELECTRONICS - MISCELLANEOUS COMPONENTS 0.42%
24,900 RF Micro Devices, Inc.<F1> 1,704,094
-------------
ELECTRONICS - SEMICONDUCTOR EQUIPMENT 8.29%
13,150 ASM Lithography Holding N.V.<F1> 1,495,813
12,600 Applied Materials, Inc.<F1> 1,596,263
20,300 Caliper Technologies Corp.<F1> 1,355,025
121,622 Cobalt Networks, Inc.<F1><F4> 11,371,061
40,000 Intel Corp. 3,292,500
21,300 JDS Uniphase Corp.<F1> 3,435,956
13,850 KLA-Tencor Corp.<F1> 1,542,544
14,900 Lam Research Corp.<F1> 1,662,281
132,800 LTX Corp.<F1> 2,971,400
15,700 Novellus Systems, Inc.<F1> 1,923,740
6,400 Photon Dynamics, Inc.<F1> 248,000
30,450 Rudolph Technologies, Inc.<F1> 1,020,075
20,900 Teradyne, Inc.<F1> 1,379,400
-------------
33,294,058
-------------
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER TECHNOLOGY FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
ELECTRONICS - SEMICONDUCTOR MANUFACTURING 4.70%
10,200 Applied Micro Circuits Corp.<F1> $1,297,950
4,650 Broadcom Corp.<F1> 1,266,544
13,500 Conexant Systems, Inc.<F1> 896,063
1,150 Exar Corp.<F1> 67,706
12,600 Globespan, Inc.<F1> 820,575
10,000 Linear Technology Corp. 715,625
9,500 Micron Technology, Inc.<F1> 738,625
4,950 PMC-Sierra, Inc.<F1> 793,547
15,150 QLogic Corp.<F1> 2,422,106
195,000 Sandcraft, Inc.<F1><F3> 481,650
16,250 Sanmina Corp.<F1> 1,622,969
12,050 SDL, Inc.<F1> 2,626,900
125,000 StorageNetworks, Inc.<F1><F3> 615,000
91,666 Transmeta Corp.<F1><F3> 916,660
43,187 TranSwitch Corp.<F1> 3,133,757
8,250 Vitesse Semiconductor Corp.<F1> 432,609
-------------
18,848,286
-------------
ENERGY - SERVICES 0.05%
6,550 Nabors Industries, Inc.<F1> 202,641
-------------
FOOD 0.04%
5,700 Symyx Technologies, Inc.<F1> 171,000
-------------
INTERNET - E-COMMERCE 2.63%
39,450 Ebenx, Inc.<F1> 1,785,113
23,975 eToys, Inc.<F1> 629,344
31,400 Fatbrain.com, Inc.<F1> 786,963
15,650 GetThere.com, Inc.<F1> 629,913
48,804 HomeGrocer.com, Inc.<F1><F3> 566,126
93,350 iGo Corp.<F1> 845,984
13,550 Netcentives, Inc.<F1> 844,334
36,050 PlanetRX.com, Inc.<F1> 522,725
120,000 Pointshare Corp.<F1><F3> 330,000
7,100 Scient Corp.<F1> 613,706
81,050 SmarterKids.com, Inc.<F1> 587,612
105,000 SmarterKids.com, Inc.<F1><F4> 634,137
15,600 Stamps.com, Inc.<F1> 649,350
123,000 VitaminShoppe.com, Inc.<F1> 1,122,375
-------------
10,547,682
-------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INTERNET - NETWORK SECURITY/SOLUTIONS 1.96%
11,900 Breakaway Solutions, Inc.<F1> $ 868,700
2,900 CacheFlow, Inc.<F1> 378,994
13,650 Calico Commerce, Inc.<F1> 723,450
2,800 Juniper Networks, Inc.<F1> 952,000
9,000 Keynote Systems, Inc.<F1> 663,750
180,000 MessageMedia, Inc.<F1> 2,531,250
9,050 Viant Corp.<F1> 895,950
10,475 WebTrends Corp.<F1> 848,475
-------------
7,862,569
-------------
INTERNET - SERVICE PROVIDER/CONTENT 2.02%
1,500 Akamai Technologies, Inc.<F1> 491,438
9,525 Chemdex Corp.<F1> 1,057,275
8,700 Engage Technologies, Inc.<F1> 522,000
53,200 Exactis.com, Inc.<F1> 1,293,425
11,700 Lifeminders.com, Inc.<F1> 675,675
31,563 Lifeminders.com, Inc.<F1><F4> 1,506,163
30,600 LookSmart, Ltd.<F1> 826,200
12,700 NaviSite, Inc.<F1> 1,270,000
16,700 NetZero, Inc.<F1> 449,856
-------------
8,092,032
-------------
MEDICAL - BIOMEDICAL/GENETICS 1.39%
16,300 Abgenix, Inc.<F1> 2,159,750
63,600 Cephalon, Inc.<F1> 2,198,175
8,350 Maxygen, Inc.<F1> 592,850
5,250 Millennium Pharmaceuticals, Inc.<F1> 640,500
-------------
5,591,275
-------------
MEDICAL - INSTRUMENTS 0.22%
14,625 ArthroCare Corp.<F1> 892,125
-------------
MEDICAL - PRODUCTS 0.60%
550 Cardiac Pathways Corp.<F1><F3> 550,000
15,550 MiniMed, Inc.<F1> 1,139,038
19,350 Zoll Medical Corp.<F1> 738,928
-------------
2,427,966
-------------
OIL & GAS - DRILLING 0.02%
3,750 UTI Energy Corp.<F1> 86,484
-------------
http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER TECHNOLOGY FUND (CONT'D.) December 31, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES 0.23%
28,075 Cal Dive International, Inc.<F1> $ 929,984
-------------
OIL & GAS - MACHINERY/EQUIPMENT 0.15%
19,350 Dril-Quip, Inc.<F1> 587,756
-------------
RETAIL - MAIL ORDER/DIRECT 0.16%
62,575 garden.com, Inc.<F1> 543,620
13,360 garden.com, Inc.<F1><F4> 106,780
-------------
650,400
-------------
TELECOMMUNICATIONS - CELLULAR 0.31%
16,800 Tritel, Inc.<F1> 532,350
5,000 VoiceStream Wireless Corp.<F1> 711,562
-------------
1,243,912
-------------
TELECOMMUNICATIONS - EQUIPMENT 6.71%
10,475 Allegiance Telecom, Inc.<F1> 966,319
10,850 Anaren Microwave, Inc.<F1> 587,256
16,050 C-COR.net Corp.<F1> 1,229,831
54,682 Copper Mountain Networks, Inc.<F1> 2,665,748
14,398 Corvis Corp.<F1><F3> 1,159,471
9,850 EchoStar Communications Corp.<F1> 960,375
17,550 Efficient Networks, Inc.<F1> 1,193,400
22,400 E-Tek Dynamics, Inc.<F1> 3,015,600
1,230 Floware Wireless Systems<F1><F3> 478,974
15,200 Harmonic Lightwaves, Inc.<F1> 1,443,050
3,000 Lucent Technologies, Inc. 224,438
10,000 Netro Corp.<F1> 510,000
70,000 Netro Corp.<F1><F4> 3,252,340
17,350 Next Level Communications, Inc.<F1> 1,299,081
16,000 Nokia Ab ADR 3,040,000
44,950 NorthPoint Communications Group, Inc.<F1> 1,078,800
13,825 Powerwave Technologies, Inc.<F1> 807,034
7,325 Redback Networks, Inc.<F1> 1,300,187
3,600 Sycamore Networks, Inc.<F1> 1,108,800
300,000 Vertical Networks, Inc.<F1><F3> 600,000
-------------
26,920,704
-------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES 4.04%
5,450 COLT Telecom Group plc<F1> $ 1,111,800
74,125 Com21, Inc.<F1> 1,663,180
11,150 Illuminet Holdings, Inc.<F1> 613,250
10,000 Level 3 Communications, Inc.<F1> 818,750
112,500 MCI WorldCom, Inc.<F1> 5,969,531
8,200 NTL, Inc.<F1> 1,022,950
100,000 Qwest Communications International, Inc.<F1> 4,300,000
17,750 Z-Tel Technologies, Inc.<F1> 716,656
-------------
16,216,117
-------------
TOTAL COMMON AND PREFERRED STOCKS
(cost $175,007,367) 301,362,081
-------------
NUMBER OF
CONTRACTS
- ---------
OPTIONS PURCHASED 1.63%
371 Put option on Nasdaq 100 Stock Index,
expiring 1/22/00 @ 3020 630,700
371 Put option on Nasdaq 100 Stock Index,
expiring 1/22/00 @ 3040 612,150
401 Put option on S&P 500 Index,
expiring 1/22/00 @ 1415 503,756
401 Put option on S&P 500 Index,
expiring 1/22/00 @ 1425 571,425
577 Put option on S&P 500 Index,
expiring 6/1/00 @ 1475 4,237,344
-------------
TOTAL OPTIONS PURCHASED
(cost $14,315,319) 6,555,375
-------------
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds SCHEDULE OF INVESTMENTS
VAN WAGONER TECHNOLOGY FUND (CONT'D.)
- --------------------------------------------------------------------------------
December 31, 1999
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 9.13%
$36,630,731 UMB Bank, n.a.,
Money Market Fiduciary $ 36,630,731
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $36,630,731) 36,630,731
-------------
TOTAL INVESTMENTS 85.83%
(cost $225,953,417) 344,548,187
Other Assets less Liabilities 14.17% 56,895,428
-------------
NET ASSETS 100.00% $401,443,615
=============
NUMBER
OF SHARES
- ---------
SECURITIES SOLD SHORT
3,100 Ameritrade Holding Corp.<F1> $ 67,231
7,800 DrKoop.com, Inc.<F1> 92,625
12,350 E-Trade Group, Inc.<F1> 322,644
12,800 HomeStore.com, Inc.<F1> 950,400
12,000 Knight/Trimark Group, Inc.<F1> 552,000
216,450 Nasdaq-100 Shares<F1> 39,556,237
550 Rambus, Inc.<F1> 37,091
17,950 Starmedia Network Inc.<F1> 719,122
-------------
TOTAL SECURITIES SOLD SHORT
(proceeds $42,200,360) $42,297,350
============
<F1> Non-income producing
<F2> Affiliated company - see Note 8
<F3> Preferred stock acquired 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.
<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
<PAGE>
Van Wagoner Funds STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
December 31, 1999
<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 $604,285,324,
$115,147,609, $63,340,521, $172,459,552
and $212,850,988, respectively) $1,330,024,447 $265,799,017 $104,939,715 $300,312,356 $331,561,999
Affiliated issuers (cost $38,732,536,
$10,988,100, $9,329,811, $13,799,932
and $13,102,429, respectively) 52,103,878 14,016,681 8,025,875 14,112,313 12,986,188
Cash - 3,027,162 728,929 - 5,046,697
Deposit at broker for short sales 109,963,727 15,445,914 870,153 1,375,422 1,442,359
Receivable from broker for proceeds
on securities sold short 173,484,661 34,080,588 15,895,041 41,615,276 42,200,360
Receivable for investments sold 62,248,596 11,472,661 29,455,500 82,625,775 82,018,407
Receivable for fund shares sold 2,705,200 218,471 714,571 3,067,902 3,786,349
Interest and dividends receivable 30,275 37,013 35,173 93,767 77,030
Receivable from Adviser - 30,063 - 94,617 66,371
Organizational costs, net of accumulated
amortization 7,329 7,329 7,329 - -
Prepaid expenses and other assets 61,494 23,056 17,976 21,969 26,675
-------------- -------------- -------------- -------------- --------------
Total Assets 1,730,629,607 344,157,955 160,690,262 443,319,397 479,212,435
-------------- -------------- -------------- -------------- --------------
LIABILITIES:
Payable for investments purchased 25,756,976 3,242,087 2,115,219 5,639,970 33,443,544
Payable for fund shares redeemed 10,638,736 520,280 363,199 3,203,453 1,387,495
Payable to custodian 5,053,664 - - 944,099 -
Accrued investment advisory fee 1,517,898 379,541 112,972 460,693 376,825
Accrued distribution fee 136,905 29,893 14,226 56,496 78,068
Securities sold short, at value (proceeds of
$173,484,661, $34,080,588, $15,895,041,
$41,615,276 and $42,200,360, respectively) 220,284,097 43,847,375 16,077,106 41,650,484 42,297,350
Accrued expenses and other liabilities 414,310 113,084 91,277 140,407 185,538
-------------- -------------- -------------- -------------- --------------
Total Liabilities 263,802,586 48,132,260 18,773,999 52,095,602 77,768,820
-------------- -------------- -------------- -------------- --------------
NET ASSETS $1,466,827,021 $296,025,695 $141,916,263 $391,223,795 $401,443,615
============== ============== ============== ============== ==============
NET ASSETS CONSIST OF:
Capital stock $ 798,995,935 $169,920,349 $ 93,877,359 $261,311,352 $281,915,486
Accumulated net realized gain
(loss) on investments (24,479,943) (17,807,856) 7,925,711 1,782,466 1,030,349
Net unrealized appreciation on investments 692,311,029 143,913,202 40,113,193 128,129,977 118,497,780
-------------- -------------- -------------- -------------- --------------
Net Assets $1,466,827,021 $296,025,695 $141,916,263 $391,223,795 $401,443,615
============== ============== ============== ============== ==============
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 34,220,003 8,508,712 5,243,622 10,272,212 6,887,071
NET ASSET VALUE, REDEMPTION
PRICE, AND OFFERING PRICE PER SHARE
(NET ASSETS/SHARES OUTSTANDING) $42.86 $34.79 $27.06 $38.09 $58.29
======= ======= ======= ======= =======
</TABLE>
See notes to financial statements.
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds FINANCIAL STATEMENTS
Van Wagoner Funds STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
Year Ended December 31, 1999
<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 $2,779,720 $ 984,523 $ 722,702 $1,066,456 $ 949,412
Dividends 29,105 13,904 52,364 1,421 4,096
-------------- -------------- -------------- -------------- --------------
Total Investment Income 2,808,825 998,427 775,066 1,067,877 953,508
-------------- -------------- -------------- -------------- --------------
EXPENSES:
Investment advisory fees 7,134,487 1,820,266 798,841 1,799,122 1,330,853
Transfer agent fees and expenses 1,111,236 271,976 210,295 245,314 216,103
Distribution fees 1,104,029 238,861 199,710 299,854 266,171
Fund accounting and administration fees 321,228 154,183 121,271 153,279 145,864
Custody fees 168,767 48,176 39,328 49,819 41,396
Federal and state registration fees 151,296 44,231 44,864 70,787 111,943
Printing and postage expenses 147,898 27,832 24,616 28,072 21,390
Professional fees 55,833 20,914 17,427 20,178 18,997
Amortization of organization costs 7,343 7,343 7,343 - -
Directors' fees and expenses 3,915 3,915 3,915 3,915 3,915
Miscellaneous 23,791 6,620 7,230 7,265 7,140
-------------- -------------- -------------- -------------- --------------
Total expenses before waiver of expenses 10,229,823 2,644,317 1,474,840 2,677,605 2,163,772
Less: Waiver of expenses - (277,027) - (337,499) (87,017)
-------------- -------------- -------------- -------------- --------------
Net Expenses 10,229,823 2,367,290 1,474,840 2,340,106 2,076,755
-------------- -------------- -------------- -------------- --------------
NET INVESTMENT LOSS (7,420,998) (1,368,863) (699,774) (1,272,229) (1,123,247)
-------------- -------------- -------------- -------------- --------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments 340,185,709 49,608,529 67,518,057 51,164,087 39,537,335
Net realized loss on short positions (44,993,173) (10,521,834) (9,900,338) (7,641,260) (8,040,675)
Net realized gain on options written 373,500 - - 30,730 16,075
Net realized loss on options purchased (119,484,650) (25,280,979) (16,928,052) (25,137,750) (24,047,077)
Net change in unrealized appreciation
and depreciation on investments 644,972,646 133,799,599 25,787,247 124,073,693 116,317,983
-------------- -------------- -------------- -------------- --------------
Net Gain on Investments 821,054,032 147,605,315 66,476,914 142,489,500 123,783,641
-------------- -------------- -------------- -------------- --------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $813,633,034 $146,236,452 $65,777,140 $141,217,271 $122,660,394
============= ============= ============= ============= =============
</TABLE>
See notes to financial statements.
http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EMERGING GROWTH FUND MICRO-CAP FUND
Year Year Year Year
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss $(7,420,998) $(3,390,492) $(1,368,863) $(665,669)
Net realized gain (loss) on investments 340,185,709 (25,908,970) 49,608,529 (6,659,483)
Net realized loss on short positions (44,993,173) (3,263,439) (10,521,834) (177,360)
Net realized gain on options written 373,500 338,890 - 35,449
Net realized loss on options purchased (119,484,650) (17,162,668) (25,280,979) (1,305,663)
Net change in unrealized appreciation and
depreciation on investments 644,972,646 62,835,799 133,799,599 14,759,509
------------- -------------------------- -------------
Net increase in net assets
resulting from operations 813,633,034 13,449,120 146,236,452 5,986,783
------------- -------------------------- -------------
DISTRIBUTIONS:
Net realized gains - - - -
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 1,334,976,637 89,133,843 310,557,920 20,946,312
Proceeds from reinvestment of dividends - - - -
Redemption of shares (871,154,335) (226,427,970) (206,882,174) (52,686,786)
------------- -------------------------- -------------
Net increase (decrease) from
share transactions 463,822,302 (137,294,127) 103,675,746 (31,740,474)
------------- -------------------------- -------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 1,277,455,336 (123,845,007) 249,912,198 (25,753,691)
NET ASSETS:
Beginning of year 189,371,685 313,216,692 46,113,497 71,867,188
------------- -------------------------- -------------
End of year $1,466,827,021 $189,371,685 $296,025,695 $46,113,497
============ ============ ============ ============
TRANSACTIONS IN SHARES:
Shares sold 53,354,949 9,196,675 13,641,819 2,127,300
Shares issued in reinvestment of dividends - - - -
Shares redeemed (36,410,153) (22,780,104) (9,214,749) (5,239,704)
------------- -------------------------- -------------
Net increase (decrease) 16,944,796 (13,583,429) 4,427,070 (3,112,404)
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MID-CAP FUND POST-VENTURE FUND TECHNOLOGY FUND
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment loss $(699,774) $(592,797) $(1,272,229) $(227,736) $(1,123,247) $(35,859)
Net realized gain (loss) on investments 67,518,057 (7,949,180) 51,164,087 2,119,321 39,537,335 536,736
Net realized loss on short positions (9,900,338) (141,333) (7,641,260) (47,432) (8,040,675) (30,410)
Net realized gain on options written - 67,488 30,730 17,724 16,075 -
Net realized loss on options purchased (16,928,052) (1,209,905) (25,137,750) (1,039,330) (24,047,077) (211,806)
Net change in unrealized appreciation and
depreciation on investments 25,787,247 16,378,554 124,073,693 4,464,627 116,317,983 2,179,797
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations 65,777,140 6,552,827 141,217,271 5,287,174 122,660,394 2,438,458
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS:
Net realized gains (4,219,722) - (13,414,334) - (5,573,230) -
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 98,635,982 13,148,963 468,452,887 14,473,780 400,603,541 12,482,357
Proceeds from reinvestment of dividends 4,157,543 - 13,277,844 - 5,456,495 -
Redemption of shares (68,359,203) (47,614,686) (237,390,880) (21,148,374) (129,879,761) (6,744,639)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) from
share transactions 34,434,322 (34,465,723) 244,339,851 (6,674,594) 276,180,275 5,737,718
------------ ------------ ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 95,991,740 (27,912,896) 372,142,788 (1,387,420) 393,267,439 8,176,176
NET ASSETS:
Beginning of year 45,924,523 73,837,419 19,081,007 20,468,427 8,176,176 -
------------ ------------ ------------ ------------ ------------ ------------
End of year $141,916,263 $45,924,523 $391,223,795 $19,081,007 $401,443,615 $8,176,176
============ ============ ============ ============ ============ ============
TRANSACTIONS IN SHARES:
Shares sold 5,034,855 1,236,753 17,970,926 1,460,608 9,542,651 944,674
Shares issued in reinvestment of dividends 182,125 - 422,069 - 113,845 -
Shares redeemed (3,666,629) (4,465,716) (9,700,571) (2,212,061) (3,211,041) (503,058)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 1,550,351 (3,228,963) 8,692,424 (751,453) 6,445,455 441,616
============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
Call toll-free 1-800-228-2121 http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds FINANCIAL HIGHLIGHTS
For a Fund Share Outstanding Throughout the Year
<TABLE>
<CAPTION>
EMERGING GROWTH FUND MICRO-CAP FUND
Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1997 1996 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $10.96 $10.15 $12.69 $10.00 $11.30 $9.99 $12.45 $10.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment loss (0.22) (0.20) (0.25) (0.15) (0.16) (0.16) (0.26) (0.09)
Net realized and unrealized gains
(losses) on investments 32.12 1.01 (2.29) 2.84<F1> 23.65 1.47 (2.20) 2.54<F1>
-------- -------- -------- -------- -------- -------- -------- --------
Total from investment operations 31.90 0.81 (2.54) 2.69 23.49 1.31 (2.46) 2.45
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS:
Net realized gains __ __ __ __ __ __ __ __
Net Asset Value, End of Year $42.86 $10.96 $10.15 $12.69 $34.79 $11.30 $9.99 $12.45
======== ======== ======== ======== ======== ======== ======== ========
Total Return 291.15% 7.98% (20.02)% 26.90% 207.88% 13.11% (19.76)% 24.50%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of year (000s) $1,466,827 $189,372 $313,217 $638,159 $296,026 $46,113 $71,867 $140,698
Ratio of expenses to average
net assets - net of waivers
and reimbursements 1.79% 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 (1.30)% (1.55)% (1.68)% (1.49)% (1.13)% (1.30)% (1.72)% (1.04)%
Ratio of expenses to average
net assets - before waivers
and reimbursements 1.79% 2.10% 1.88% 1.98% 2.18% 2.63% 2.32% 2.55%
Ratio of net investment loss to
average net assets - before
waivers and reimbursements (1.30)% (1.70)% (1.68)% (1.52)% (1.36)% (1.98)% (2.09)% (1.64)%
Portfolio turnover rate 353% 668% 333% 159% 180% 367% 232% 153%
</TABLE>
<TABLE>
<CAPTION>
MID-CAP FUND POST-VENTURE FUND TECHNOLOGY FUND
Year Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1997 1996 1999 1998 1997 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $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 (0.13) (0.16) (0.22) (0.09) (0.12) (0.14) (0.15) (0.16) (0.08)
Net realized and unrealized gains
(losses) on investments 15.71 1.92 (1.50) 2.48<F1> 28.33 3.44 (1.07) 41.29 8.59
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total from investment operations 15.58 1.76 (1.72) 2.39 28.21 3.30 (1.22) 41.13 8.51
-------- -------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS:
Net realized gains (0.95) __ __ __ (2.20) __ __ (1.35) __
Net Asset Value, End of Year $27.06 $12.43 $10.67 $12.39 $38.09 $12.08 $8.78 $58.29 $18.51
======== ======== ======== ======== ======== ======== ======== ======== ========
Total Return 126.88% 16.49% (13.88)% 23.90% 237.22% 37.59% (12.20)% 223.76% 85.10%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of year (000s) $141,916 $45,925 $73,837 $137,740 $391,224 $19,081 $20,468 $401,444 $8,176
Ratio of expenses to average
net assets - net of waivers
and reimbursements 1.85% 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 (0.88)% (1.15)% (1.42)% (1.16)% (1.06)% (1.39)% (1.39)% (1.05)% (0.88)%
Ratio of expenses to average
net assets - before waivers
and reimbursements 1.85% 2.12% 1.80% 2.05% 2.23% 2.90% 2.69% 2.03% 5.80%
Ratio of net investment loss to
average net assets - before
waivers and reimbursements (0.88)% (1.32)% (1.42)% (1.26)% (1.34)% (2.34)% (2.13)% (1.13)% (4.73)%
Portfolio turnover rate 589% 787% 304% 173% 328% 641% 317% 275% 888%
</TABLE>
<F1> The amount shown may not correlate with the aggregate gains and losses of
portfolio securities due to timing of sales and redemptions of Fund shares.
See notes to financial statements.
Call toll-free 1-800-228-2121 http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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. The Emerging Growth and
Micro-Cap Funds closed to new investors on November 15, 1999.
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 require management to make
certain estimates and assumptions at the date of the financial statements.
Actual results could differ from such estimates. Certain percentages in the
Financial Highlights have been restated to conform to current year
presentation.
(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 is used. All other securities for which over-
the-counter market quotations are readily available are valued at the
last sale 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' Adviser under the supervision
of the Board of Directors.
(B) 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.
(C) EXPENSES - The Funds are charged for those expenses that are directly
attributable to each Fund, 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.
(D) 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
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds NOTES TO FINANCIAL STATEMENTS
income to its shareholders which will be sufficient to relieve it from
all or substantially all federal income taxes.
As of December 31, 1999, the Emerging Growth and Micro-Cap Funds had
federal income tax capital loss carryforwards of $44,603,535 and
$23,862,439, respectively. The entire federal income tax loss
carryforward for each of these Funds expires between 2004 and 2006.
During 1999, the Mid-Cap and Post-Venture Funds utilized $24,215,117
and $945,298, respectively, of their capital loss carryforwards
against net realized capital gains. As of December 31, 1999, the Post-
Venture and Technology Funds had $4,655,093 and $4,984,888,
respectively, of post-October 1999 capital losses which are deferred
until 2000 for tax purposes. Net realized gains and losses may differ
for tax and financial statement purposes primarily as a result of wash
sales.
(E) RESTRICTED SECURITIES - The Funds own certain securities which are
unregistered and thus restricted as to resale. These securities are
valued at their fair value, which at December 31, 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 the unregistered securities. The Emerging Growth,
Micro-Cap, Mid-Cap, Post-Venture and Technology Funds had restricted
securities with an aggregate market value of $69,073,595, $15,281,088,
$4,714,569, $15,030,374 and $13,842,070, respectively, representing
4.7%, 5.2%, 3.3%, 3.8% and 3.4%, respectively, of the net assets of
each of the Funds.
(F) 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 mean 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 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
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<PAGE>
Van Wagoner Funds NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 a written 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.
(G) 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 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. Accordingly, at December 31, 1999,
reclassifications were recorded to increase undistributed net
investment income by $7,420,998, $1,368,863, $699,774, $1,272,229 and
$1,123,247; decrease accumulated net realized gain (loss) on
investments by $0, $0, $692,430, $1,272,229 and $1,123,247; and
decrease capital stock by $7,420,998, $1,368,863, $7,344, $0 and $0
for the Emerging Growth, Micro-Cap, Mid-Cap, Post-Venture and
Technology Funds, respectively.
(H) INITIAL PUBLIC OFFERINGS - The Funds may invest in initial public
offerings ("IPOs"). IPOs and other investment techniques may have a
magnified performance impact on a Fund.
(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 and expense 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 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, 2001. Expenses of $0, $277,027, $0, $337,499
and $87,017 were waived in the Emerging Growth, Micro-Cap, Mid-Cap, Post-
Venture and Technology Funds, respectively.
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds NOTES TO FINANCIAL STATEMENTS
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 each 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 year ended December 31, 1999 were as
follows:
PURCHASES SALES
------------------------------------------------------------------
EMERGING
GROWTH FUND $1,918,881,885 $1,826,505,145
MICRO-CAP FUND 216,369,616 182,185,245
MID-CAP FUND 368,205,161 403,050,201
POST-VENTURE FUND 383,700,703 317,432,938
TECHNOLOGY FUND 378,765,788 248,377,481
The cost of securities on a tax basis at December 31, 1999, for the
Emerging Growth Fund, Micro-Cap Fund, Mid-Cap Fund, Post-Venture Fund and
Technology Fund is $449,409,607, $86,000,538, $55,217,327, $138,466,655 and
$178,040,147, respectively. These amounts include the proceeds on short
sales reflected in the Statements of Assets and Liabilities. At December
31, 1999, gross unrealized appreciation and depreciation on securities for
federal income tax purposes were as follows:
NET
UNREALIZED
APPRECIATION
UNREALIZED (UNREALIZED ON
APPRECIATION DEPRECIATION) INVESTMENTS
------------------------------------------------------------------------
EMERGING GROWTH FUND $789,439,619 $(77,004,998) $712,434,621
MICRO-CAP FUND 162,874,678 (12,906,893) 149,967,785
MID-CAP FUND 47,139,591 (5,468,434) 41,671,157
POST-VENTURE FUND 142,933,242 (8,625,712) 134,307,530
TECHNOLOGY FUND 132,855,540 (8,644,850) 124,210,690
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.
http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
7. OPTIONS CONTRACTS WRITTEN
The premium amount and the number of options contracts written during the
year ended December 31, 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
December 31, 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
December 31, 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
December 31, 1999 $ - -
=========== ===========
Call toll-free 1-800-228-2121
<PAGE>
Van Wagoner Funds NOTES TO FINANCIAL STATEMENTS
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. The market value of these securities is
reflected in the Schedules of Investments. Companies which are affiliates
of each Fund are as follows:
<TABLE>
<CAPTION>
AMOUNT OF
AMOUNT OF LOSS
SHARE ACTIVITY DIVIDENDS REALIZED
------------------------------------------------------- CREDITED ON SALE
BALANCE PURCHASES/ SALES/ BALANCE TO INCOME OF SHARES
SECURITY NAME 12/31/98 ADDITIONS REDUCTIONS 12/31/99 IN 1999 IN 1999
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EMERGING GROWTH FUND
OnHealth Network Co.<F1> 1,019,900 4,777,150 605,000 5,192,050 - $ (4,297,941)
Famous Dave's of
America, Inc.<F1> 381,600 204,800 586,400 - - (1,973,820)
ACT Networks, Inc.<F1> - 951,400 951,400 - - (6,205,161)
VitaminShoppe.com<F1> - 701,600 76,950 624,650 - (76,534)
------------ ------------
- $(12,553,456)
============ =============
MICRO-CAP FUND
OnHealth Network Co.<F1> 117,700 1,450,600 - 1,568,300 - -
============ =============
MID-CAP FUND
OnHealth Network Co.<F1> - 898,000 - 898,000 - -
============ =============
POST-VENTURE FUND
OnHealth Network Co.<F1> 105,000 1,474,000 - 1,579,000 - -
============ =============
TECHNOLOGY FUND
OnHealth Network Co.<F1> 50,000 1,403,000 - 1,453,000 - -
============ =============
</TABLE>
<F1> Non-income producing
http://WWW.VANWAGONER.COM
<PAGE>
Van Wagoner Funds REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of the Van Wagoner Funds, Inc.:
- --------------------------------------------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Van Wagoner Emerging Growth Fund, the Van
Wagoner Micro-Cap Fund, the Van Wagoner Mid-Cap Fund, the Van Wagoner Post-
Venture Fund, and the Van Wagoner Technology Fund, comprising the Van Wagoner
Funds (the "Funds") as of December 31, 1999, and the related statements of
operations, changes in net assets, and the financial highlights for the year
then ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit. The statement of changes in net assets and the financial highlights
prior to 1999 were audited by other auditors whose report dated January 29, 1999
expressed an unqualified opinion.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of December 31, 1999, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the 1999 financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Van Wagoner Funds at December 31, 1999, the results of its operations, the
changes in its net assets and the financial highlights for the year then ended
in conformity with accounting principles generally accepted in the United
States.
/s/ Ernst & Young LLP
Chicago, Illinois
February 11, 2000
Call toll-free 1-800-228-2121
<PAGE>
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<PAGE>
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<PAGE>
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.
<PAGE>
(LOGO) VAN WAGONER FUNDS
- ------------------------------------------------------------------------------
------------------
BULK RATE
U.S. POSTAGE PAID
PERMIT NO. 472
CAROL STREAM, IL
------------------
Please mail correspondence to:
VAN WAGONER FUNDS
P.O. BOX 1628
MILWAUKEE, WI 53201-1628
Express mail or overnight deliveries
should be sent to:
VAN WAGONER FUNDS
207 EAST BUFFALO ST., SUITE 315
MILWAUKEE, WI 53202-5712
WWW.VANWAGONER.COM
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