LOU HOLLAND GROWTH FUND
Letter to Shareholders August 1999
Dear Shareholder:
For the first half of 1999, the Lou Holland Growth Fund returned 4.53%,
underperforming the Lipper General U.S. Stock Funds average return of 11.18%,
the Lipper Growth Funds return of 11.74%, and the S&P 500 return of 12.38%. Over
the last year, the Fund returned 20.34%, outperforming the Lipper General U.S.
Stock Fund average return of 13.71% and the Lipper Growth Stock Funds return of
18.87%. It underperformed the S&P 500 return of 22.76%.
After an unprecedented 4 consecutive years of 20%+ returns, the major market
indexes are on track to extend the record to five years, with most of the major
large capitalization indexes achieving double digit gains for the first half of
1999.
At the beginning of the year, the outlook for the global economy and corporate
earnings was cautious due to slow foreign economic growth and moderate domestic
growth. However, as we entered the second quarter, foreign economic activity
began to improve, primarily as a result of over 80 global interest rate cuts.
The U.S. economy also accelerated causing U.S. corporate earnings to be revised
upward. This improved outlook caused value, economy-sensitive, and small
capitalization stocks to rally. Small stocks generally do better in a strong or
improving economy. Because of the stronger economy, investors became concerned
about higher inflation and ultimately higher interest rates. With the prospect
of higher interest rates, large capitalization growth stocks with price/earnings
ratios of almost twice the S&P 500 corrected sharply.
As a result of this dramatic shift in sentiment, the large capitalization
Russell 1000 Value index outperformed the comparable Russell 1000 Growth index
by over 7% during the second quarter. Large growth stocks, however, have
outperformed large value stocks by over 5% annually for the last 5 years. The
small stock Russell 2000 index outperformed the Russell 1000 index by over 8%
during the second quarter. The small capitalization index has underperfomed the
large capitalization index by over 11% annually for the last 5 years.
It is unclear at this point whether the shift from growth to value and from
large to small will continue. If the economy begins to slow, large growth stocks
should regain favor.
Portfolio Review & Outlook
The performance of the Fund was impacted negatively by our emphasis on high
quality mid-and-large capitalization growth companies whose earnings are growing
faster than the general market. Because of the high predictability of growth
stock company earnings, growth stocks tend to perform better during periods of
economic uncertainty. The recent reacceleration of global growth has enabled
industrial, manufacturing, and other economy sensitive stocks to perform better.
Because of this reacceleration in economic strength, Federal Reserve policy has
shifted from reducing interest rates in late 1998 to increasing rates in 1999.
Because of current historically high price/earnings ratios of growth companies,
higher interest rates will have a negative effect on these companies, should
rates continue to rise.
The best performing market sectors in 1999 have been energy, producer durable
goods, materials & processing, and technology, while the worst performing market
sectors have been consumer staples, healthcare, auto & transportation, and
financial services. Our overweighting in the worst performing sectors has had a
negative impact on portfolio performance during 1999. Our energy holdings have
had a positive impact on performance.
During the first half of 1999, investors enjoyed a very favorable environment
for stock investment, with small, value, and economy-sensitive industrial stocks
joining the party for the first time in several years. The factors driving this
dramatic improvement in market breadth are: a strong domestic and improving
global economy, strong productivity gains, which is the single most important
factor affecting inflation, improving corporate earnings expectations, and an
insatiable demand for equities.
With the major market indexes up 10-20% through the middle of August, it appears
to us that the stock market has caught up with the recently revised upward
consensus earnings forecast of 12% for 1999 and 9% for the year 2000 for the S&P
500.
With the Federal Reserve's recent bias towards raising interest rates to stave
off inflation, it is unlikely that we will see price/earnings ratio expansion
from the current historically high 26X next year's earnings.
1
<PAGE>
We expect stock price performance over the remainder of the year to be volatile,
after having achieved what we believe to be most of the gains for the year in
the first half.
As we approach the year 2000, we continue to believe that our investment
philosophy of purchasing high quality, reasonably priced mid-and-large growth
companies, with a leadership position in their industry, will provide superior
results for long term investors.
Thank you for your investment in the Lou Holland Growth Fund.
Sincerely,
/s/ Louis A. Holland
Louis A. Holland
President
Line chart
Lou Holland Russell Russell
Growth Fund S& P 500 100 Growth Mid Cap Growth
10000 10000 10000 10000
10520 10297 10363 9896
11462 11500 11385 10528
13355 13870 13611 11637
14663 15337 14857 12901
17290 18054 17885 14432
19720 19720 20609 15206
20807 22162 22763 17365
THIS CHART ASSUMES AN INITIAL GROSS INVESTMENT OF $10,000 MADE ON 4/29/96
(COMMENCEMENT OF OPERATIONS). RETURNS SHOWN INCLUDE THE REINVESTMENT OF ALL
DIVIDENDS. IN THE ABSENCE OF FEE WAIVERS AND REIMBURSEMENTS, TOTAL RETURN WOULD
BE REDUCED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO THAT YOUR SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
RUSSELL 1000 GROWTH INDEX - An unmanaged index which measures the performance of
a subset of approximately 524 of those Russell 1000 companies (that is, the
1,000 largest U.S. companies in terms of market capitalization) with higher
price-to-book ratios and higher forecasted earnings growth rates.
RUSSELL MID-CAP GROWTH INDEX - An unmanaged index which measures the performance
of a subset of approximately 400 of those Russell Mid-Cap companies with higher
price-to-book ratios and higher forecasted earnings growth rates. These stocks
are also members of the Russell 1000 Growth Index.
S&P 500 INDEX - An unmanaged capitalization-weighted index of 500 stocks
designed to measure performance of the broad domestic economy through changes in
the aggregate market value of the 500 stocks which represent all major
industries.
Average Annual Rate of Return for the Periods Ended June 30, 1999
Year-to-Date 1 Year Since Inception 4/29/96
Lou Holland Growth Fund 4.53% 20.34% 26.00%
S&P 500 12.38% 22.76% 28.51%
Russell 1000 Growth Index 10.45% 27.27% 29.60%
Russell Mid-Cap Growth Index 14.19% 20.31% 19.00%
2
<PAGE>
LOU HOLLAND
GROWTH FUND
Statement of Assets and Liabilities
June 30, 1999
(Unaudited)
ASSETS:
Investments, at value
(cost $6,290,843) $10,132,754
Deferred organization charges 14,679
Receivable from investment
manager 2,562
Dividends receivable 8,986
Interest receivable 915
Other assets 19,822
-----------
Total Assets 10,179,718
-----------
LIABILITIES:
Accrued expenses and
other liabilities 24,261
----------
Total Liabilities 24,261
-----------
NET ASSETS $10,155,457
===========
NET ASSETS CONSIST OF:
Capital stock $ 6,310,789
Undistributed net
investment loss (7,833)
Undistributed net realized
gain on investments 10,590
Net unrealized appreciation
on investments 3,841,911
-----------
Total Net Assets $10,155,457
===========
Shares outstanding (no par,
unlimited shares authorized) 505,677
Net Asset Value, Redemption
Price and Offering Price
Per Share $ 20.08
===========
Statement of Operations
For the Six Months Ended June 30, 1999
(Unaudited)
INVESTMENT INCOME:
Dividend income
(net of withholding tax $863) $ 45,293
Interest income 12,247
-----------
Total Investment Income 57,540
-----------
EXPENSES:
Investment manager fee 41,161
Administration fee 14,067
Shareholder servicing and
accounting costs 24,420
Custody fees 1,966
Federal and state registration 3,643
Professional fees 9,139
Amortization of deferred
organization charges 4,586
Reports to shareholders 7,238
Other 3,124
-----------
Total expenses before
reimbursement 109,344
Less: Reimbursement from
Investment Manager (43,971)
-----------
Net Expenses 65,373
-----------
NET INVESTMENT INCOME (7,833)
-----------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized loss on investments (23,152)
Change in unrealized appreciation
on investments 485,783
-----------
Net realized and unrealized gain
on investments 462,631
-----------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $ 454,798
===========
See notes to the financial statements.
3
<PAGE>
LOU HOLLAND
GROWTH FUND
Statement of Changes in Net Assets
June 30, 1999
Six Months Year Ended
June 30, 1999 December 31, 1998
------------- ------------------
(Unaudited)
OPERATIONS:
Net investment loss $ (7,833) $ (7,673)
Net realized gain/(loss)
on investments (23,152) 57,854
Change in unrealized
appreciation on investments 485,783 2,077,211
---------- ----------
Net increase in net assets
from operations 454,798 2,127,392
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- (2,756)
From net realized gains -- (15,843)
---------- ----------
-- (18,599)
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 1,504,664 2,594,987
Shares issued to holders in
reinvestment of dividends -- 18,575
Cost of shares redeemed (938,908) (887,368)
----------- ----------
Net increase in net assets from
capital share transactions 565,756 1,726,194
----------- ----------
TOTAL INCREASE IN
NET ASSETS 1,020,554 3,834,987
----------- ----------
NET ASSETS:
Beginning of period 9,134,903 5,299,916
----------- ----------
End of period $10,155,457 $9,134,903
============ ==========
CHANGES IN SHARES OUTSTANDING:
Shares sold 78,346 157,598
Shares issued to holders in
reinvestment of dividends -- 967
Shares redeemed (48,173) (56,762)
----------- ----------
Net increase 30,173 101,803
============ ==========
See notes to the financial statements.
4
<PAGE>
LOU HOLLAND
GROWTH FUND
Financial Highlights
<TABLE>
<CAPTION>
April 29, 1996 (1)
Six Months Year Ended Year Ended through
Ended December 31, December 31, December 31,
June 30, 1999 1998 1997 1996
------------- ------------- ------------- -------------
(Unaudited)
Per Share Data:
<S> <C> <C> <C> <C>
Net asset value, beginning of period $19.21 $14.18 $11.28 $10.00
------ ------ ------ ------
Income from investment operations:
Net investment loss (0.01)(2) (0.02)(2) 0.00 0.00
Net realized and unrealized
gains on investments 0.88 5.09 3.14 1.46
------ ------ ------ ------
Total from investment operations 0.87 5.07 3.14 1.46
------ ------ ------ ------
Less distributions:
Dividends from net
investment income -- (0.01) (0.03) (0.05)
Dividends from capital gains -- (0.03) (0.21) (0.13)
------ ------ ------ ------
Total distributions -- (0.04) (0.24) (0.18)
------ ------ ------ ------
Net asset value, end of period $20.08 $19.21 $14.18 $11.28
====== ====== ====== ======
Total return 4.53%(3) 35.75% 27.92% 14.62%(3)
Supplemental data and ratios:
Net assets, end of period $10,155,457 $9,134,903 $5,299,916 $2,860,671
Ratios of expenses to average net assets
Before expense reimbursement 2.25%(4) 2.84% 4.19% 6.50%(4)
After expense reimbursement 1.35%(4) 1.35% 1.35% 1.35%(4)
Ratio of net investment income (loss)
to average net assets
Before expense reimbursement (1.07)%(4) (1.60)% (2.83)% (5.11)%(4)
After expense reimbursement (0.17)%(4) (0.11)% 0.02% 0.04%(4)
Portfolio turnover rate 2.00% 32.84% 34.29% 30.48%
</TABLE>
(1) Commencement of operations
(2) Net investment income per share is calculated using the ending balance of
undistributed net investment income prior to consideration of adjustments
for permanent book and tax differences.
(3) Not annualized.
(4) Annualized.
See notes to the financial statements.
5
<PAGE>
LOU HOLLAND
GROWTH FUND
Schedule of Investments
June 30, 1999
(Unaudited)
Number of Market
Shares Value
- --------- --------
COMMON STOCKS - 97.1%
Auto & Transportation - 0.8%
1,400 Magna International, Inc. F $ 79,450
----------
Consumer Discretionary - 5.9%
1,525 American Management
Systems, Inc.* 48,895
4,500 Carnival Corp. 218,250
1,725 Home Depot, Inc. 111,155
1,525 Lowe's Companies 86,448
2,900 Wal-mart Stores, Inc. 139,925
----------
604,673
----------
Consumer Staples - 14.7%
1,575 Albertson's, Inc. 81,211
2,425 CVS Corp. 123,069
1,000 Clorox Company 106,813
1,100 Coca-Cola Company 68,750
1,025 Colgate-Palmolive Company 101,219
1,900 Gillette Company 77,900
3,650 PepsiCo, Inc. 141,209
4,700 Philip Morris Companies, Inc. 188,881
1,550 The Procter & Gamble
Company 138,337
3,300 Safeway, Inc.* 163,350
8,550 Walgreen Company 251,156
2,950 Whitman Corp. 53,100
----------
1,494,995
----------
Financial Services - 16.2%
2,062 American International Group, Inc. 241,383
4,150 Automatic Data Processing, Inc. 182,600
1,455 Bank One Corp. 86,663
2,550 Citigroup, Inc. 121,125
2,437 Concord EFS, Inc.* 103,116
Number of Market
Shares Value
- --------- --------
Financial Services - 16.2% (continued)
2,850 Fannie Mae $ 194,869
2,900 Federal Home Loan Mortgage
Corp. 168,200
1,600 MBIA, Inc. 103,600
3,000 Mellon Bank Corp. 109,125
1,600 Northern Trust Corp. 155,200
4,150 Wells Fargo Company 177,412
----------
1,643,293
----------
Health Care - 19.5%
3,050 Abbott Laboratories 138,775
1,400 American Home Products Corp. 80,500
2,650 Elan Corporation PLC - ADR* 73,538
1,200 Guidant Corp. 61,725
2,275 Johnson & Johnson Company 222,950
1,525 Eli Lilly & Company 109,228
2,500 Medtronic, Inc. 194,687
2,550 Merck & Co., Inc. 188,700
1,300 Novartis AG - ADR 94,912
1,550 Pfizer, Inc. 170,113
1,725 Pharmacia & Upjohn, Inc. 98,002
4,600 Schering-Plough Corp. 243,800
2,300 Smithkline Beecham
PLC - ADR 151,944
2,200 Warner-Lambert Company 152,625
----------
1,981,499
----------
Integrated Oils - 4.0%
827 BP Amoco Corp. - ADR 89,730
1,825 Enron Corp. 149,194
800 Mobil Corp. 79,200
1,450 Royal Dutch Petroleum
Company - ADR 87,362
----------
405,486
----------
See notes to the financial statements.
6
<PAGE>
LOU HOLLAND
GROWTH FUND
Schedule of Investments
June 30, 1999
(Unaudited)
Number of Market
Shares Value
- --------- --------
Materials & Processing - 3.6%
2,400 Jacobs Engineering Group, Inc.* $ 91,200
2,250 Tyco International Ltd 213,187
1,725 Valspar Corp. 65,550
----------
369,937
Other Energy - 1.9%
2,950 Schlumberger LTD 187,878
----------
Other - 3.8%
2,000 Federal Signal Corp. 42,375
3,050 General Electric Company 344,650
----------
387,025
----------
Producer Durables - 0.8%
1,500 Grainger (W.W.), Inc. 80,719
----------
Technology - 18.4%
1,950 Affiliated Computer
Services - A* 98,719
4,324 Cisco Systems, Inc.* 278,628
3,700 EMC Corp.* 203,500
1,475 Hewlett-Packard Company 148,238
2,000 Intel Corp. 119,000
2,000 International Business
Machines Corp. 258,500
4,200 Lucent Technologies, Inc. 283,238
5,300 Microsoft Corp * 477,994
----------
1,867,817
----------
Number of Market
Shares Value
- --------- --------
Utilities - 7.5%
1,200 AES Corp.* $ 69,750
4,350 American Telephone &
Telegraph Company 242,784
3,350 GTE Corp. 253,762
2,250 MCI Worldcom, Inc.* 193,641
----------
759,937
----------
Total common stocks (cost $6,020,798) 9,862,709
===========
Principal
Amount Value
- --------- --------
SHORT-TERM INVESTMENTS - 2.7%
Variable Rate
Demand Notes - 2.7%
$ 190,114 General Mills $ 190,114
72,490 Warner Lambert 72,490
7,441 Wisconsin Electric 7,441
-----------
Total variable rate demand
notes (cost $270,045) 270,045
-----------
Total investments - 99.8%
(cost $6,290,843) 10,132,754
Other assets in excess
of liabilities - (0.2)% 22,703
-----------
TOTAL NET ASSETS -
100.0% $10,155,457
===========
* Non-income producing security.
F Foreign security.
See notes to the financial statements.
7
<PAGE>
LOU HOLLAND
GROWTH FUND
Notes to the Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Lou Holland Trust (the "Trust") was organized on December 20, 1995, as a
Delaware business trust and is registered as a no-load, open-end diversified
management investment company under the Investment Company Act of 1940 (the
"1940 Act"). The Trust is organized as a series company and currently consists
of one series, the Growth Fund (the "Fund"). The principle investment objective
of the Fund is to seek long-term growth of capital by investing primarily in
common stocks of growth companies, with the receipt of dividend income as a
secondary consideration. The Fund commenced operations on April 29, 1996.
The costs incurred in connection with the organization, initial registration and
public offering of shares, were approximately $76,688. These costs are being
amortized over the period of benefit, but not to exceed sixty months from the
Fund's commencement of operations. The proceeds of any redemption of the initial
shares (seed money) by the original stockholder or any tranferee will be reduced
by a pro-rata portion of any then unamortized organizational expenses in the
same proportion as the number of initial shares being redeemed bears to the
number of initial shares outstanding at the time of such redemption.
The following is a summary of significant accounting policies consistently
followed by the Fund.
a) Investment Valuation - Common stocks and other equity-type securities that
are listed on a securities exchange are valued at the last quoted sales price on
the day the valuation is made. Price information on listed stocks is taken from
the exchange where the security is primarily traded. Securities which are listed
on an exchange but which are not traded on the valuation date are valued at the
most recent bid prices. Unlisted securities for which market quotations are
readily available are valued at the latest quoted bid price. Debt securities are
valued at the latest bid prices furnished by independent pricing services. Other
assets and securities for which no quotations are readily available are valued
at fair value as determined in good faith by the Holland Capital Management,
L.P. (the "Investment Manager") under the supervision of the Board of Trustees.
Short-term instruments (those with remaining maturities of 60 days or less) are
valued at amortized cost, which approximates market.
b) Federal Income Taxes - Provision for federal income taxes or excise taxes has
not been made since the Fund has elected to be taxed as a "regulated investment
company" and intends to distribute substantially all taxable income to its
shareholders and otherwise comply with the provisions of the Internal Revenue
Code applicable to regulated investment companies. Therefore, no federal income
tax provision is required.
8
<PAGE>
LOU HOLLAND
GROWTH FUND
c) Distributions to Shareholders - Dividends from net investment income and
distributions of net realized capital gains, if any, will be declared and paid
at least annually.
d) 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 the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
e) Foreign Securities - Investing in securities of foreign companies and foreign
governments involves special risks and considerations not typically associated
with investing in U.S. companies and the U.S. government. These risks include
revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more volatile
than those of securities of comparable U.S. companies and the U.S. government.
f) Foreign Currency Translations - The books and records of the Fund are
maintained in U.S. dollars. Foreign currency transactions are translated into
U.S. dollars on the following basis: (i) market value of investment securities,
assets and liabilities at the daily rates of exchange, and (ii) purchases and
sales of investment securities, dividend and interest income and certain
expenses at the rates of exchange prevailing on the respective dates of such
transactions. For financial reporting purposes, the Fund does not isolate
changes in the exchange rate of investment securities from the fluctuations
arising from changes in the market prices of securities. However, for federal
income tax purposes the Fund does isolate and treat as ordinary income the
effect of changes in foreign exchange rates on realized gain or loss from the
sale of investment securities and payables and receivables arising from trade
date and settlement date differences.
g) Other - Investment and shareholder transactions are recorded on the trade
date. The Fund determines the gain or loss realized from the investment
transactions by comparing the original cost of the security lot sold with the
net sales proceeds. Dividend income is recognized on the ex-divided date or as
soon as information is available to the Fund, and interest income is recognized
on an accrual basis. Generally accepted accounting principles require that
permanent financial reporting and tax differences be reclassified to capital
stock.
9
<PAGE>
LOU HOLLAND
GROWTH FUND
2. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, by the Fund for the six months ended June 30, 1999, were as
follows:
Purchases Sales
------------- -------------
U.S. Government $ -- $ --
Other $ 1,164,850 $ 184,176
At June 30, 1999, gross unrealized appreciation and depreciation of investments
for tax purposes were as follows:
Appreciation $4,087,460
(Depreciation) (72,289)
----------
Net appreciation on investments $4,015,171
===========
At the close of business on May 2, 1996, the partners of The Holland Fund, L.P.
transferred their assets to the Fund. As a result of the tax-free transfer the
Fund acquired $244,079 of unrealized appreciation for tax purposes. As of June
30, 1999, the Fund realized $70,819 of the appreciation.
At June 30, 1999, the cost of investments for federal income tax purposes was
$6,117,583.
3. AGREEMENTS
The Fund has entered into an Investment Management and Administration Agreement
with Holland Capital Management, L.P. Pursuant to its management agreement with
the Fund, the Investment Manager is entitled to receive a fee, calculated daily
and payable monthly, at the annual rate of 0.85% as applied to the Fund's daily
net assets up to $500 million. The fee declines at specified breakpoints as
assets increase.
10
<PAGE>
LOU HOLLAND
GROWTH FUND
The Investment Manager has contractually agreed to waive its fees and reimburse
other expenses of the Fund to the extent that total operating expenses exceed
1.35%. This agreement may be terminated only by the Trust's Board of Trustees.
For the six months ended June 30, 1999, the Investment Manager waived fees and
reimbursed expenses of $43,971.
HCM Investments, Inc. serves as principal underwriter and the Distributor of the
shares of the Fund pursuant to a Distribution Agreement between the Distributor
and the Trust. The Distributor is an affiliate of the Investment Manager. The
Fund's shares are sold on a no-load basis and, therefore, the Distributor
receives no sales commission or sales load for providing services to the Fund.
The Fund has not currently entered into any plan or agreement for the payment of
fees pursuant to Rule 12b-1 under the 1940 Act.
Firstar Mutual Fund Services, LLC, serves as transfer agent, administrator and
accounting services agent for the Fund. Firstar Bank Milwaukee, N.A. serves as
custodian for the Fund.
11
<PAGE>
TRUSTEES AND OFFICERS
Louis A. Holland, President, Trustee, and
Chairman of the Board of Trustees
Managing Partner and Chief Investment Officer, Holland
Capital Management, L.P. and President, Treasurer, and
Director, HCM Investments, Inc.
Monica L. Walker, Secretary and Trustee
Portfolio Manager, Holland Capital Management, L.P.
Vice President, HCM Investments, Inc.
Laura J. Janus, Treasurer
Portfolio Manager, Holland Capital Management, L.P.
Vice President, HCM Investments, Inc.
Lester H. McKeever, Jr., Trustee
Managing Partner, Washington, Pittman & McKeever
Certified Public Accountants & Management Consultants
Kenneth R. Meyer, Trustee
President and Managing Partner
Lincoln Capital Management Company
John D. Mabie, Trustee
President, Mid-Continent Capital
MANAGER
Holland Capital Management, L.P.
35 West Wacker Drive, Suite 3260
Chicago, IL 60601
Telephone (312) 553-1000
CUSTODIAN AND TRANSFER AGENT
Firstar Bank Milwaukee, N.A.
Firstar Mutual Fund Services, LLC
P.O. Box 701
Milwaukee, Wisconsin 53201-0701
Telephone (800) 295-9779
INDEPENDENT AUDITOR
KPMG LLP
Chicago, IL
LEGAL COUNSEL
Jorden Burt Boros Cicchetti Berenson & Johnson
Washington, D.C.
LOGO: LOU HOLLAND GROWTH FUND
SEMI-ANNUAL REPORT
June 30, 1999
