JWB AGGRESSIVE GROWTH FUND
Shareholders Report
Dear Shareholders,
The year ending December 31, 1997, proved to be a very successful year for the
Fund, with the Fund earning an annual total return of 39.41%. We believe using
the same diligent fundamental analysis to purchase only the most well managed
companies in the market, which show strong future growth patterns relative to
the companies current price, will hopefully allow us to repeat 1997 results
(past performance is no guarantee of future performance).
In 1998, we will be increasing our efforts to market the Fund in light of our
great return. We will be marketing through registered investment advisors and
other sources to increase assets under management.
This year's economy appears to be comparable to last year's economy in several
characteristics. Individual companies continue posting strong returns, while
unemployment remains at its lows. Inflation has not shown strong signs of
increasing in the near future, which means interest rates will not have to be
raised to constrict the economy. The American economy's pace should not slow
down significantly, due to Asian economic problems (at least for the first 3
quarters of the year). We expect earnings to stay strong and for companies who
manage their debt and have no more than 10% of their business dealings in Asia
to lead the market, and thus pull the markets in an upward swing (while the
weekly markets exhibit schizophrenic volatility). This all means - we should be
fine for the first three quarters.
We would like to give thanks to the shareholders for their commitment and belief
in the Fund and hope you will benefit from our hard work and diligence in the
future.
Sincerely,
/s/ John W. Bagwell
- ------------------------------
John W. Bagwell, CEO & Trustee
JWB Aggressive Growth Fund
February 26, 1998
<PAGE>
JWB Aggressive Growth Fund
vs. Nasdaq Composite & S&P 500 Index
The following data replaces a graph that depicts the growth of a hypothetical
$10,000 investment.
JWB Aggressive
S & P 500 Index Nasdaq Composite Growth Fund
--------------- ---------------- -----------
12/31/96 $10,000.00 $10,000.00 $10,000.00
1/31/97 $10,613.00 $10,688.00 $10,583.00
2/28/97 $10,676.00 $10,139.00 $10,074.00
3/31/97 $10,221.00 $9,463.00 $9,460.00
4/30/97 $10,818.00 $9,766.00 $9,311.00
5/31/97 $11,452.00 $10,847.00 $10,360.00
6/30/97 $11,949.00 $11,170.00 $11,239.00
7/31/97 $12,883.00 $12,345.00 $12,299.00
8/31/97 $12,143.00 $12,295.00 $12,818.00
9/30/97 $12,788.00 $13,057.00 $14,756.00
10/31/97 $12,347.00 $12,344.00 $14,153.00
11/30/97 $12,898.00 $12,397.00 $14,163.00
12/31/97 $13,234.00 $12,164.00 $13,941.00
Total Return*
Year Ended 12/31/97
-------------------
JWB Aggressive Growth Fund 39.41%
NASDAQ Composite Index 36.05%**
S&P 500 Index 33.36%
* Assumes reinvestment of all dividends and capital gains.
** Simple Price Appreciation. Dividends and capital gains not reinvested in
index.
<PAGE>
JWB AGGRESSIVE GROWTH FUND
Schedule of Investments
December 31, 1997
COMMON STOCKS Shares Value
------ --------
BASIC INDUSTRIES (7.4%)
Albermarle Corp. 975 $ 23,278
Safety Components Intl, Inc.* 372 4,464
--------
27,742
--------
TRANSPORTATION (2.2%)
CSX Corp. 150 8,100
--------
CONSUMER DURABLES (5.6%)
Arctic Cat Inc. 1,700 16,469
Penn Engineering & Mfg. Corp. 200 4,800
--------
21,269
--------
APPAREL & ACCESSORY (9.5%)
Gymboree Corp. * 428 11,717
Just For Feet, Inc. * 150 1,969
Sears Roebuck & Co.* 200 9,050
Saks Holdings Inc.* 200 4,138
Tommy Hilfiger Corp.* 250 8,781
--------
35,655
--------
UTILITIES (1.6%)
Allen Telecom Inc.* 275 5,070
Wireless Telecom Group Inc. 130 804
--------
5,874
--------
FINANCIAL (10.0%)
City National Corp. 775 28,627
Peoples Bancshares Inc.* 100 2,275
TCF Financial Corp.* 100 3,394
Sierrawest Bancorp * 100 3,375
--------
37,671
--------
The accompanying notes are an integral part of these financial statements.
<PAGE>
JWB AGGRESSIVE GROWTH FUND
Schedule of Investments (Continued)
December 31, 1997
COMMON STOCKS (CONTINUED) Shares Value
------ --------
CAPITAL GOODS - CONSTRUCTION (3.6%)
Boeing Co.* 206 $ 10,081
Ciprico Inc.* 100 1,175
Sport-Haley Inc.* 220 2,240
--------
13,676
--------
TECHNOLOGY & SCIENCE (3.5%)
Scientific Games Hldgs Corp. * 550 11,138
Thermotrex Corp.* 100 2,213
--------
13,351
--------
Total Common Stocks (43.4%)
(Cost $139,918) 163,338
Cash (55.5%) 208,574
Other assets - Net (1.1%) 4,230
--------
NET ASSETS (100%) $376,142
========
* Non - Income Producing Security
The accompanying notes are an integral part of these financial statements.
<PAGE>
JWB AGGRESSIVE GROWTH FUND
Statement of Assets and Liabilities
December 31, 1997
ASSETS
Investment in Securities, at current
value (cost $139,917) $ 163,336
Cash 208,575
Receivables:
Dividends 95
Interest 956
Due from Advisor (Note 2) 3,783
Deferred organization costs (Note 1) 19,523
---------
Total assets 396,268
---------
LIABILITIES
Accrued expenses 603
Due to advisor for deferred organization costs (Note 1) 19,523
---------
Total liabilities 20,126
---------
NET ASSETS $ 376,142
=========
Net assets consist of:
Paid-in capital $ 353,095
Accumulated net realized gain from investments 34
Net unrealized appreciation on investments 23,419
Accumulated net investment loss (406)
---------
NET ASSETS (FOR 39,771 SHARES OUTSTANDING) $ 376,142
=========
NET ASSET VALUE PER SHARE $ 9.46
=========
The accompanying notes are an integral part of these financial statements.
<PAGE>
JWB AGGRESSIVE GROWTH FUND
Statement of Operations
Year ended December 31, 1997
INVESTMENT INCOME
Dividend income $ 1,645
Interest income 3,281
---------
Total income 4,926
---------
EXPENSES
Investment management fees (Note 2) 3,906
Administrative service fee (Note 2) 3,515
Accounting service fees 21,966
Audit fees 4,800
Custodian fees 3,624
Registration fees 250
Insurance 1,500
---------
Total expenses before reimbursement 39,561
Expense reimbursement by advisor (Note 2) (32,320)
---------
Net expenses 7,241
---------
NET INVESTMENT LOSS (2,315)
---------
NET REALIZED AND UNREALIZED GAIN FROM INVESTMENTS:
Net realized gain on investments 125,060
Net change in unrealized appreciation of investments 6,890
---------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 131,950
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 129,635
=========
The accompanying notes are an integral part of these financial statements.
<PAGE>
JWB AGGRESSIVE GROWTH FUND
Statement of Changes in Net Assets
December 31, 1997
<TABLE>
<CAPTION>
For the period
March 28, 1996
(commencement
For year ended of operations)
December 31, to December 31,
1997 1996
--------- ---------
Increase (decrease) in net assets from operations:
<S> <C> <C>
Net investment loss $ ( 2,315) (406)
Net realized gain (loss) from investments 125,060 (16,880)
Change in unrealized appreciation
of investments 6,890 16,528
--------- ---------
Net increase (decrease) in net assets resulting
from operations 129,635 (758)
--------- ---------
Distributions to shareholders:
Distributions from net realized gain on investments (105,831) --
--------- ---------
Total distributions to shareholders (105,831) --
--------- ---------
Capital share transactions: *
Proceeds from shares sold 11,000 462,011
Proceeds from shares issued on reinvestment of
distributions from capital gains 105,831 --
Shares redeemed (207,426) (18,320)
--------- ---------
Net decrease from capital share transactions (90,595) 443,691
--------- ---------
Total increase (decrease) in net assets (66,791) 442,933
Net assets at beginning of year 442,933 --
--------- ---------
Net assets at end of year $ 376,142 $ 442,933
========= =========
*Shares sold 860 48,836
Shares issued in reinvestment of distribution 11,199 --
--------- ---------
12,059 48,836
Shares redeemed (19,231) (1,893)
--------- ---------
Net increase (decrease) (7,172) 46,943
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
JWB AGGRESSIVE GROWTH FUND
Financial Highlights
(Selected data for a share of capital stock outstanding through each period)
<TABLE>
<CAPTION>
For the period
March 28, 1996
(commencement
For year ended of operations)
December 31, to December 31,
1997 1996
--------- ---------
<S> <C> <C>
Net asset value, beginning of year $ 9.44 $ 10.00
--------- ---------
Income from investment operations:
Net investment income (0.06) (0.01)
Net realized and unrealized gain
on investments 3.78 (0.55)
--------- ---------
Total from investment operations 3.72 (0.56)
--------- ---------
Less Distributions to shareholders:
Net realized gain on investments sold (3.70) --
--------- ---------
Total distributions (3.70) --
--------- ---------
Net asset value, end of year $ 9.46 $ 9.44
========= =========
Total investment return 39.41% (0.06%)
Ratios/Supplemental Data:
Net assets, end of period (000's) $ 376 $ 443
Ratio of expenses to average net assets 1.86% 1.95%
Ratio of net investment income to average net assets (0.59%) (0.23%)
Portfolio turnover rate 44.34% 181.79%
Average commission rate paid $ .0345 $ .0426
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
JWB AGGRESSIVE GROWTH FUND
Notes To Financial Statements
December 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization: JWB Aggressive Growth Fund (the "Fund") is a, diversified
open-end management investment company that consists of one portfolio.
The Fund is organized as a Massachusetts business trust and is
registered under the Investment Company Act of 1940. The Fund is
authorized to issue an unlimited number of shares. The policies
described below are followed consistently by the Fund in the preparation
of its financial statements in conformity with generally accepted
accounting principles for regulated investment companies.
The following is a summary of significant accounting policies followed
by the Fund.
Security Valuation: Securities are valued at the last reported sales
price, in the case of securities where there is no reported last sale,
the closing bid price. Securities for which market quotations are not
readily available are valued at their fair values as determined in good
faith by or under the supervision of the Fund's Board of Trustees in
accordance with methods which have been authorized by the Board. Short
term debt obligations with maturities of 60 days or less are valued at
amortized cost which approximates market value.
Securities Transactions and Investment Income: Security transactions are
recorded on the dates the transactions are entered into (the trade
dates). Realized gains and losses on security transactions are
determined on the identified cost basis. Dividend income is recorded on
the ex-dividend date. Interest income is determined on the accrual
basis. Discount on fixed income securities is amortized.
Dividends and Distributions to Shareholders: The Fund records all
dividends and distributions payable to shareholders on the ex-dividend
date.
Federal Income Taxes: It is the Fund's intention to qualify as a
regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal income taxes is required in the
financial statements.
Use of Estimates: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and reported amounts
of revenue and expenses during the reporting period. Actual results
could differ from those estimates.
<PAGE>
JWB AGGRESSIVE GROWTH FUND
Notes To Financial Statements (Continued)
December 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Other: The timing and characterization of certain income and capital
gains distributions are determined annually in accordance with federal
tax regulations which may differ from generally accepted accounting
principals. These differences relate primarily to foreign denominated
investments, market discount, defaulted bonds, partnerships, non-taxable
dividends and losses deferred due to wash sales. As a result, net
investment income (loss) and net realized gain (loss) on investment
transactions for a reporting period may differ significantly from
distributions during such period. Accordingly, the Fund may periodically
make reclassifications among certain of its capital accounts without
impacting the net asset value of the Fund.
Deferred Organization Expenses: JWB Investment Advisory & Research (the
"Advisor") has paid the deferred organization expenses of the Fund. The
deferred organization expenses will be amortized over a period not
exceeding five years once the Fund has the ability to amortize the
expenses and not exceed the voluntary expense limitation (see Note 2).
The Advisor will be repaid at the rate in which the deferred
organization expenses are amortized.
2. MANAGEMENT FEE AND TRANSACTIONS WITH AFFILIATES
Investment Management Fee: Under the terms of the investment management
agreement, the Advisor has agreed to provide the Fund investment
management services and be responsible for the day to day operations of
the Fund. The Advisor will receive a fee, for the performance of its
services at an annual rate of 1% of average daily net assets. The fee
will be accrued daily and paid monthly. An investment management fee of
$3,906 was accrued but none paid for the period December 31, 1997. The
Advisor had agreed to limit the Fund's expenses to 2.35% of the Fund's
average daily net assets until July 6, 1997. The actual expense ratio
for the year ended December 31, 1997 was 1.85%. The Advisor reimbursed
the Fund and waived fees and expenses totalling $32,320 for the year
ended December 31, 1997.
Administration Fee: The Fund has an administration agreement with JWB
Management Corporation (the "Administrator"), an affiliate of the
Advisor, to provide certain administrative and shareholder services,
subject to the supervision and direction of the Board of Trustees of the
Fund. The Administrator provides or contracts for a variety of services,
including monitoring the financial, accounting and administrative
transactions of the Fund, preparation of materials for meetings of the
Board of Trustees, coordinating the preparation of
<PAGE>
JWB AGGRESSIVE GROWTH FUND
Notes To Financial Statements (Continued)
December 31, 1997
2. MANAGEMENT FEE AND TRANSACTIONS WITH AFFILIATES (Continued)
the semi-annual and annual financial statements, preparation of tax
returns and monitoring compliance procedures for the Fund. In addition,
the Administrator pays for certain expenses borne by the Fund including
the charges and expenses of the transfer agent, legal expenses, the
costs incurred in the preparation and mailing of the Fund's prospectus
and sales and promotional material, and other miscellaneous expense not
borne by the Fund. For these services, the Fund pays the Administrator a
fee, which is calculated daily and paid monthly, equal to an annual rate
of .90% of average daily net assets. An administrative fee of $3,515 was
accrued but none paid for the period ended December 31, 1997.
Certain officers and directors of the Fund are officers and directors of
the Manager.
3. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term
securities) for the year ended December 31, 1997 were $136,015 and
$529,278, respectively.
At December 31, 1997 net unrealized appreciation for federal income tax
purposes aggregated $23,419 of which $27,808 related to unrealized
appreciation and $4,389 related to unrealized depreciation. The cost of
investments at December 31, 1997 for federal income tax purposes was
$139,918.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Shareholders and
Board of Trustees of the
JWB Aggressive Growth Fund
We have audited the accompanying statement of assets and liabilities of
JWB Aggressive Growth Fund including, the schedule of investments, as of
December 31, 1997, and the related statements of operations for the year then
ended, changes in net assets, and the financial highlights for the period March
28, 1996 (commencement of operations) to December 31, 1996 and for the year
ended December 31, 1997. These financial statements are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements 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 securities owned as of December 31, 1997, 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 audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of JWB
Aggressive Growth Fund as of December 31, 1997, the results of its operations
for the year then ended, the changes in net assets, and the financial highlights
for the period March 28, 1996 (commencement of operations) to December 31, 1996
and for the year ended December 31, 1997, in conformity with generally accepted
accounting principles.
Abington, Pennsylvania
February 18, 1998 Certified Public Accountants
