AMERINDOFUNDS
ANNUAL REPORT
OCTOBER 31, 2000
<PAGE>
TABLE OF CONTENTS
--------------------------------------------------------------------------------
SHAREHOLDER LETTER .......................................................... 1
2000 REVIEW AND ECONOMIC OUTLOOK ............................................ 7
STATEMENTS OF NET ASSETS .................................................... 9
STATEMENTS OF OPERATIONS .................................................... 16
STATEMENTS OF CHANGES IN NET ASSETS ......................................... 18
NOTES TO FINANCIAL STATEMENTS ............................................... 20
FINANCIAL HIGHLIGHTS ........................................................ 30
INDEPENDENT AUDITORS' REPORT ................................................ 32
<PAGE>
October 2000
Dear Shareholder:
During 1999, over one hundred technology-focused mutual funds more than
doubled in value. Never before had mutual fund investors reaped such handsome
rewards in such a short period of time. A period of digestion was to be
expected.
Amerindo management stated publicly in late 1999 and early 2000 that a
sharp correction and transitional phase was likely to follow this unprecedented
period. In sum, 2000 would be a year in which marginal Internet business models
would be severely tested, and a rapidly maturing B2C sector would be upstaged by
explosive growth in B2B, infrastructure and optical networking. As our fiscal
year concluded, our projections had unfolded as expected. The net result being a
generally adverse investment environment for the Internet sector with investor
sentiment having swung rapidly from one extreme to another.
Amerindo Technology Fund (Class D) declined 13.90% for the one-year period
ending October compared to 48.20% for the Hambrecht & Quist Growth Index. Our
two new additions to the AmerindoFunds family, Amerindo Internet B2B Fund and
Amerindo Health & Biotechnology Fund were launched near the bottom of the spring
correction on 30 May and produced impressive cumulative returns of 67.91% and
45.99% for Class D Shares, respectively. The benchmark Hambrecht & Quist Growth
Index and the Hambrecht & Quist Healthcare Index returned 11.78% and 26.27%
respectively for the period May 30, 2000 through October 31, 2000.
In contrast, the biotechnology sector has been far more buoyant, advancing
sharply for the fiscal year. Strong gains in a number of biotechnology and
genomics issues helped to buffer our flagship Technology Fund's overall decline
and to produce strong initial results for the new Amerindo Health &
Biotechnology Fund.
AmerindoFunds' fiscal year began with both Internet and biotechnology
stocks in solid uptrends, fueled by the large appetite by retail investors. Wall
Street happily met this demand by supplying investors with a record number of
initial public offerings. As the buying frenzy accelerated, underwriters were
tempted to bring younger, more unseasoned companies to market with a resulting
decline in the quality of new issues. Meanwhile, the Federal Reserve staunchly
defended its stance toward tighter monetary policy by systematically raising
rates. As 2000 began, rates were pushed higher again in February, March and May.
Adding to the mix was an imbalance in supply and demand for crude oil, which
steadily pushed prices higher. Nonetheless, the market continued its strong
advance and surged into the spring carrying Internet and biotechnology stocks to
substantial new highs.
1
<PAGE>
Sensing a more difficult environment in 2000, Amerindo's strategy was
to increase the diversification of the Technology Fund somewhat, by adding
new names, including several in the biotechnology sector to the portfolio.
Noting a maturing B2C sector, we began to increase our emphasis on B2B,
telecommunications and networking stocks. While we were very comfortable with
the growth prospects for the portfolio's core holdings -- fundamentals were
explosive -- we were very confident a spring correction was overdue. In early
March, the market peaked and sold off sharply over the next 5 weeks to a
mid-April low. The Internet sector specifically had been buffeted by the
expected transition from the first wave of companies directed toward simple
vertical retail businesses and portals to the much deeper and more complex B2B,
optical networking and infrastructure enterprises. In contrast, the
biotechnology sector exceeded its July price peak and settled into a narrow
trading range near record high levels as the fiscal year closed.
In the midst of the spring correction, Amerindo's new Internet B2B and
Health & Biotechnology Funds were launched. Both portfolios have been slowly
constructed over the past several months by strategically building core
positions in leading companies during periods of price weakness.
Despite the current somber market backdrop, this report's Economic Outlook
makes clear that we believe all is well with the Internet revolution. Its
deployment continues to gain momentum as it moves rapidly toward our projection
of $3 to $4 trillion in new wealth creation over the next several years.
We summarize from our Economic Outlook:
o Adoption of the Internet as the universal business-operating platform
moves inexorably forward.
o Slowdowns at companies like Microsoft, Dell and Intel make it
increasingly evident that the Internet computing model is shifting
business away from them as it rapidly replaces the client/server-
computing model, which their products largely support.
o Slowing economic growth and poor pricing power will reinforce Internet
use as the single most effective tool for raising productivity, lowering
costs and expanding margins.
o Corporate Internet technology spending accelerates as it garners a
growing share of IT budgets.
o Even though rates have moderated, technology in general is still the
fastest growing sector of the global economy. o A combination of
exploding fundamentals and declining share prices have made many of our
core Internet holdings outstanding values.
o Continued volatility and price weakness in the near-term should be
followed by the next major up-leg for our sector as early as late
spring.
2
<PAGE>
Amerindo maintains that 2000 will prove to be a normal period of
consolidation for our portfolio companies operating at the center of the
Internet revolution. Within the health and biotechnology sector we also see
acceleration in the employment of new analytical tools to leverage the historic
work recently underway in gene sequencing. These advances will not only produce
a family of new pharmaceuticals aimed at an expanded group of targets, but an
entire class of new companies dedicated to research and discovery.
Consistent with the firm's approach for over two decades, we believe strong
company fundamentals will continue to drive our successful research and
investment process. We search for rapidly growing technology companies that have
the potential to lead and dominate a very large market with a unique product or
service. We thank all Amerindo shareholders for their confidence in our
investment style as we navigate through this period of transition.
AMERINDOFUNDS
/s/signature omitted /s/signature omitted
Alberto W. Vilar Gary A. Tanaka
3
<PAGE>
AMERINDO TECHNOLOGY FUND (Class D)
versus the HAMBRECHT & QUIST GROWTH INDEX
Growth of a $10,000 Investment
10/31/96* to 10/31/00
<TABLE>
<CAPTION>
AMERINDO TECHNOLOGY FUND, CLASS D HAMBRECHT & QUIST GROWTH INDEX
<S> <C> <C>
10/31/96 $10,000 $10,000
10/31/97 7,344 10,673
10/31/98 8,822 10,694
10/31/99 32,664 25,469
10/31/00 28,124 37,744
</TABLE>
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
AS OF OCTOBER 31, 2000**
--------------------------------------------------------------------------------
Annualized Since Inception
One Year 3 Years Annualized Cumulative
--------------------------------------------------------------------------------
-13.90% 56.45% 30.31% 189.14% Class D
--------------------------------------------------------------------------------
-13.98% N/A 73.27% 243.80% Class A
--------------------------------------------------------------------------------
-18.92% N/A 68.80% 224.21% Class A with load
--------------------------------------------------------------------------------
N/A N/A N/A -34.64% Class C
--------------------------------------------------------------------------------
N/A N/A N/A -35.29% Class C with load
--------------------------------------------------------------------------------
*Month-end nearest to commencement of operations date of 10/28/96 for Class D
Shares.
**The Fund's average annual total returns reflect reinvestment of dividends
and/or capital gains distributions in additional sales with and without the
effect of the 5.75% maximum front-end sales charge for Class A Shares.
This charts illustrates the total value of an assumed $10,000 investment in
Amerindo Technology Fund Class D Shares (from 10/31/96 to 10/31/00), as compared
to the performance of an appropriate broad-based index. The chart assumes the
reinvestment of dividends and capital gains. Past performance is not indicative
of future results, and is not representative of future gain or loss in capital
value or dividend income.
4
<PAGE>
AMERINDO INTERNET B2B FUND (Class D)
versus the HAMBRECHT & QUIST GROWTH INDEX
Growth of a $10,000 Investment
5/31/00* to 10/31/00
AMERINDO INTERNET B2B FUND, CLASS D HAMBRECHT & QUIST GROWTH INDEX
5/31/00 $10,000 $10,000
10/31/00 16,791 11,178
--------------------------------------------------------------------------------
RETURNS
AS OF OCTOBER 31, 2000**
--------------------------------------------------------------------------------
Cumulative
Inception to Date
--------------------------------------------------------------------------------
67.91% Class D
--------------------------------------------------------------------------------
67.89% Class A
--------------------------------------------------------------------------------
58.25% Class A with load
--------------------------------------------------------------------------------
67.30% Class C
--------------------------------------------------------------------------------
66.30% Class C with load
--------------------------------------------------------------------------------
*Month-end nearest to commencement of operations date of 5/30/00 for Class D
Shares.
**The Fund's average annual total returns reflect reinvestment of dividends
and/or capital gains distributions in additional sales with and without the
effect of the 5.75% maximum front-end sales charge for Class A Shares.
This charts illustrates the total value of an assumed $10,000 investment in
Amerindo Internet B2B Fund Class D Shares (from 5/31/00 to 10/31/00), as
compared to the performance of an appropriate broad-based index. The chart
assumes the reinvestment of dividends and capital gains. Past performance is not
indicative of future results, and is not representative of future gain or loss
in capital value or dividend income.
5
<PAGE>
AMERINDO HEALTH & BIOTECHNOLOGY FUND (Class D)
versus the HAMBRECHT & QUIST HEALTHCARE INDEX
Growth of a $10,000 Investment
5/31/00* to 10/31/00
<TABLE>
<CAPTION>
AMERINDO HEALTH & BIOTECHNOLOGY FUND, CLASS D HAMBRECHT & QUIST HEALTHCARE INDEX
<S> <C> <C>
5/31/00 $10,000 $10,000
10/31/00 14,599 12,627
</TABLE>
--------------------------------------------------------------------------------
RETURNS
AS OF OCTOBER 31, 2000**
--------------------------------------------------------------------------------
Cumulative
Inception to Date
--------------------------------------------------------------------------------
45.99% Class D
--------------------------------------------------------------------------------
45.90% Class A
--------------------------------------------------------------------------------
37.51% Class A with load
--------------------------------------------------------------------------------
45.51% Class C
--------------------------------------------------------------------------------
44.50% Class C with load
--------------------------------------------------------------------------------
*Month-end nearest to commencement of operations date of 5/30/00 for Class D
Shares.
**The Fund's average annual total returns reflect reinvestment of dividends
and/or capital gains distributions in additional sales with and without the
effect of the 5.75% maximum front-end sales charge for Class A Shares.
This charts illustrates the total value of an assumed $10,000 investment in
Amerindo Health & Biotechnology Fund Class D Shares (from 5/30/00 to 10/31/00),
as compared to the performance of an appropriate broad-based index. The chart
assumes the reinvestment of dividends and capital gains. Past performance is not
indicative of future results, and is not representative of future gain or loss
in capital value or dividend income.
6
<PAGE>
2000 REVIEW AND ECONOMIC OUTLOOK
We have consistently said since the end of last year that 2000 would be a
year of transition for the market following the enormous gains of last year,
with expectations of very modest capital gains. Market activity at quarter end
was characterized by activity normally associated near a stock market bottom.
Recent heightened downside volatility has been due to concern over high-energy
costs, a weak Euro, slowing U.S. growth, and a Federal Reserve that continues to
talk tough. Each year brings it's own set of economic concerns. This year Middle
East tensions and anxiety over the Euro have led to an increase in oil prices,
which in turn has led to higher worldwide interest rates and ultimately to fears
about the outlook for economic growth in the U.S. and abroad. Investors continue
to worry that the Federal Reserve's past interest rate increases and higher
energy costs could lead to recession. The Fed believes that the principle risks
are higher inflation and an economy that is running flat out at the limits of
its resources. Yet there is little evidence in monitoring corporate developments
of any resurgence of inflation. Company earnings' releases indicate that poor
pricing pressure and slowing growth in demand are what worry businesses.
Our view is that the U.S. economy remains in fairly good shape, as the
likelihood of a supply disruption seems low. Oil prices ought to fall once
Middle East tensions subside. The U.S. economy should still experience healthy,
albeit slower growth in 2001. The risks of a hard landing are low; the U.S. can
probably grow between 3% to 4% in 2001, which is remarkable for the 11th year of
expansion. Earnings momentum will slow, but will still be robust. The key to
this favorable scenario is continued gains in productivity, which could rise 3%
next year. Below we discuss how the Internet will fuel productivity gains in
2001 and beyond. This should make technology the only sure double-digit growth
sector. Even large cap tech stocks, whose earnings growth will likely drop from
perhaps 30% to 20% next year, will still exhibit strong relative earnings
compared to the overall market. While capital spending could slow down a bit
next year, we don't think investment for the Internet will be impacted. The
Internet is being applied to business in revolutionary ways that will have a
major bearing on the prospects for economic growth and productivity for the
years ahead. A recent survey by PURCHASING ONLINE indicated that 25% of
purchasing professionals were conducting transactions over the Internet in 1999,
with this figure rising to 59% this year and 90% by 2002. The buyers surveyed
indicated the following benefits of purchasing supplies over the Internet: 1)
sourcing time was saved, 2) new sources of supply were found, 3) easier
comparison shopping, 4) personnel is used more efficiently, 5) operating costs
are reduced, 6) lower prices are paid, 7) the supply base is optimized, and 8)
greater control over spending and inventory are achieved. This impressive list
of Internet advantages is another reason, which mitigates against economic
slowdown.
Internet technology spending by business is in an historic accelerating
growth pattern. While investment in mature, older generation technology can be
cyclical, Internet infrastructure expenditures should be relatively immune to
increased budgeting for capital expenditures. Internet technology will give a
competitive edge to companies that adopt it, including considerable potential
commensurate savings. In third quarter reporting to date, non-technology
companies have been indicating that Internet spending is markedly INCREASING on
a sequential quarterly basis, despite some evidence of economic slowing. The
latter is probably adversely impacting
7
<PAGE>
the more traditional or cyclical areas of business, such as the PC market. We
believe that there will be a long term, irreversible shift in technology capital
expenditures directed to the Internet. Infrastructure expansion for the Internet
is clearly NOT discretionary, particularly in times of tough competition, rising
costs and little or no pricing flexibility. The corporate push to upgrade
Internet infrastructure is fueling productivity growth, the key determinant in
sustaining the present benign economic conditions, and keeping the Fed from
worrying about inflation.
Internet technology is being used today to work towards a "total" network
encompassing all participants: buyers and sellers. These networks are being
variously labeled as supply networks, parallel chains, enhanced concurrent
activities and synchronized supply models. The new supply chain demands seamless
integration of software and systems as well as visibility throughout the
network. Collaborative systems are being used to improve essential visibility
and to cut inventory. The Internet will ultimately be used by businesses to
marry the dynamics of customer interaction with the supply chain. So far, the
Internet has witnessed a dramatic shift in power to customers such that
companies that integrate their supply chains and their customer strategies can
achieve significant improvements in performance. Manufacturers who can adopt
this two-pronged approach can expect to find significant benefits in increased
profits, efficiency and customer loyalty. For example, typical e-procurement
cost reductions of as little as 5% to 10% of total purchases can result in close
to a doubling of earnings. Going forward, manufacturers must use the Web to
integrate customer relationships and build supply chains that can respond in
real time to individual customers' needs. The ultimate goal will be the ability
to improve supply chain collaboration across a network of numerous disparate
partners. The business world is rapidly moving towards building so-called
Digital Loyalty Networks, which leverage data gleaned from the extended
enterprise, including the demand chain right through to the supply chain, with
the express goal of maximizing the lifetime value of customer relationships.
The new digital extended enterprise forms the cornerstone of the biggest
structural or paradigm change in business in probably the last 50 years. This
evolution is made possible by the build-out of the necessary infrastructure for
B2B commerce, specifically the creation of a next generation of optical-
switching networks for data transmission.
In sum, however, the stock market correction this year in our sector can
only be characterized as severe, notwithstanding the extraordinary build-out of
the new B2B paradigm that has only just begun. The market's correction has been
more technical than fundamental in nature, owing to last year's spectacular
gains and the speculative IPO market. Over the near term, the technology sector
may be buffeted by concern about the impending failure of many new Internet
companies that came prematurely to the public market, and the predictable
slowdown in the growth of large cap, well established technology companies like
Intel, Dell, etc., that are prominent in yesterday's technology. This could
certainly give rise to more, rather than less, volatility. We however, see a
major new up-leg in our sector starting perhaps as early as springtime next year
based on exploding fundamentals and sold-out valuations for Internet stocks.
Portfolios with broad exposure to Internet deployment should be in a unique
position to achieve significant appreciation over the next several years as the
Internet is deployed throughout the U.S. and global economy.
8
<PAGE>
AMERINDO TECHNOLOGY FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
COMMON STOCKS* -- 89.1%
SHARES VALUE
------------- ------------
117,500 Akamai Technologies ................................. $ 5,992,500
348,500 Alkermes ............................................ 12,916,281
300,000 Amazon.com .......................................... 10,987,500
720,000 Ariba ............................................... 90,990,000
365,000 Ask Jeeves .......................................... 4,745,000
475,000 At Home ............................................. 4,898,437
104,000 Broadcom, Cl A ...................................... 23,127,000
377,000 CMGI ................................................ 6,361,875
65,500 Critical Path ....................................... 3,180,844
702,000 eBay ................................................ 36,153,000
80,000 Freemarkets ......................................... 3,955,000
414,000 Genzyme Transgenics ................................. 8,875,125
180,000 Getty Images ........................................ 5,715,000
245,000 Gilead Sciences ..................................... 21,070,000
572,500 Homestore.com ....................................... 19,465,000
475,000 Inktomi ............................................. 30,132,813
191,000 Internap Network Services ........................... 3,056,000
181,240 Internet Capital Group .............................. 2,401,430
350,000 Looksmart ........................................... 2,471,875
145,000 Medimmune ........................................... 9,479,375
320,000 Priceline.com ....................................... 1,840,000
190,000 Siebel Systems ...................................... 19,938,125
175,000 Sycamore Networks ................................... 11,068,750
20,000 Ventro .............................................. 96,250
20,000 Vignette ............................................ 596,250
475,000 WebMD ............................................... 5,403,125
306,776 Yahoo! .............................................. 17,984,743
------------
TOTAL COMMON STOCKS
(Cost $432,440,032) $362,901,298
------------
9
<PAGE>
AMERINDO TECHNOLOGY FUND
STATEMENT OF NET ASSETS (CONCLUDED)
OCTOBER 31, 2000
REPURCHASE AGREEMENT -- 11.0%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
JP Morgan
6.50%, dated 10/31/00, matures 11/01/00,
repurchase price $44,803,934 (collateralized by
U.S. Treasury Note: total market value $45,692,748) ......... $44,795,846 $ 44,795,846
------------
TOTAL REPURCHASE AGREEMENT
(Cost $44,795,846) 44,795,846
------------
TOTAL INVESTMENTS -- 100.1%
(Cost $477,235,878) 407,697,144
------------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) (592,351)
------------
NET ASSETS:
Fund Shares of Class D
($.001 par value)+ based on 18,808,011 outstanding
shares of beneficial interest ............................................ 454,012,473
Fund Shares of Class A
($.001 par value)+ based on 1,079,586 outstanding
shares of beneficial interest ............................................ 29,468,706
Fund Shares of Class C
($.001 par value)+ based on 264,409 outstanding
shares of beneficial interest ............................................ 7,779,651
Accumulated net investment loss ............................................. (56,448)
Accumulated net realized loss on investments ................................ (14,560,855)
Net unrealized depreciation on investments .................................. (69,538,734)
------------
TOTAL NET ASSETS -- 100.0% .................................................. $407,104,793
============
Net Asset Value, Offering and Redemption Price per Share -- Class D ......... $ 20.20
============
Net Asset Value and Redemption Price per Share -- Class A ................... $ 20.31
============
Maximum Offering Price per Share -- Class A ($20.31 / 94.25%)** ............. $ 21.55
============
Net Asset Value, Offering and Redemption Price per Share -- Class C ......... $ 20.08
============
<FN>
* ALL COMMON STOCK HELD AS OF OCTOBER 31, 2000 ARE NON-INCOME PRODUCING.
** 5.75% REPRESENTS THE MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES.
+ ONE BILLION SHARES AUTHORIZED IN TOTAL FOR THE FUND.
CL -- CLASS
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
AMERINDO INTERNET B2B FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
<TABLE>
<CAPTION>
COMMON STOCKS* -- 63.1%
SHARES VALUE
------------- -----------
<S> <C> <C>
7,500 Akamai Technologies ................................................. $ 382,500
9,000 Ariba ............................................................... 1,137,375
14,000 Commerce One ........................................................ 898,625
40,000 eBay ................................................................ 2,060,000
29,000 Exodus Communications ............................................... 973,313
7,500 I2 Technologies ..................................................... 1,275,000
50,000 Internet Capital Group .............................................. 662,500
7,500 Juniper Networks .................................................... 1,462,500
27,500 Kana Communications ................................................. 646,250
8,000 Redback Networks .................................................... 851,500
35,000 Scient .............................................................. 630,000
10,000 Sycamore Networks ................................................... 632,500
-----------
TOTAL COMMON STOCKS
(Cost $11,703,913) 11,612,063
-----------
</TABLE>
REPURCHASE AGREEMENTS -- 35.2%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
JP Morgan
6.50%, dated 10/31/00, matures 11/01/00,
repurchase price $3,476,018 (collateralized by
U.S. Treasury Note: total market value $3,545,188) .......... $3,475,390 3,475,390
ABN-AMRO
6.50%, dated 10/31/00, matures 11/01/00,
repurchase price $3,000,542 (collateralized by
U.S. Treasury Note: total market value $3,060,325) .......... 3,000,000 3,000,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $6,475,390) 6,475,390
-----------
TOTAL INVESTMENTS -- 98.3%
(Cost $18,179,303) 18,087,453
-----------
OTHER ASSETS AND LIABILITIES, NET -- 1.7% $ 319,766
-----------
</TABLE>
11
<PAGE>
AMERINDO INTERNET B2B FUND
STATEMENT OF NET ASSETS (CONCLUDED)
OCTOBER 31, 2000
<TABLE>
<CAPTION>
VALUE
------------
<S> <C>
NET ASSETS:
Fund Shares of Class D
(forty million authorized-$.001 par value)
based on 898,478 outstanding shares of beneficial interest ............... $14,717,157
Fund Shares of Class A
(forty million authorized-$.001 par value)
based on 107,887 outstanding shares of beneficial interest ............... 1,752,007
Fund Shares of Class C
(forty million authorized-$.001 par value)
based on 90,477 outstanding shares of beneficial interest ................ 1,523,152
Accumulated net realized gain on investments ................................ 506,753
Net unrealized depreciation on investments .................................. (91,850)
-----------
TOTAL NET ASSETS -- 100.0% .................................................. $18,407,219
===========
Net Asset Value, Offering and Redemption Price per Share -- Class D $ 16.79
===========
Net Asset Value and Redemption Price per Share -- Class A $ 16.78
===========
Maximum Offering Price per Share -- Class A ($16.78 / 94.25%) $ 17.80
===========
Net Asset Value, Offering and Redemption Price per Share -- Class C $ 16.72
===========
<FN>
* ALL COMMON STOCK HELD AS OF OCTOBER 31, 2000 ARE NON-INCOME PRODUCING.
** 5.75% REPRESENTS THE MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
AMERINDO HEALTH & BIOTECHNOLOGY FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
<TABLE>
<CAPTION>
COMMON STOCKS* -- 92.7%
SHARES VALUE
------------- ------------
<S> <C> <C>
9,400 Affymetrix .................................................... $ 520,525
10,000 Alkermes ...................................................... 370,625
46,000 Coulter Pharmaceutical ........................................ 1,762,375
20,000 Emisphere Technologies ........................................ 506,250
35,000 Gemini Genomics, PLC .......................................... 398,125
13,000 Gilead Sciences ............................................... 1,118,000
10,000 Human Genome Sciences ......................................... 883,906
20,000 Medimmune ..................................................... 1,307,500
16,000 OSI Pharmaceuticals ........................................... 1,152,000
15,000 PE Corporation-Celera Genomics Group .......................... 1,012,500
4,000 Pharmacyclics ................................................. 215,250
----------
TOTAL COMMON STOCKS
(Cost $9,199,294) ........................................................ 9,247,056
----------
</TABLE>
REPURCHASE AGREEMENT -- 6.8%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
JP Morgan
6.50%, dated 10/31/00, matures 11/01/00,
repurchase price $676,417 (collateralized by
U.S. Treasury Note: total market value $690,595) $676,295 676,295
----------
TOTAL REPURCHASE AGREEMENT
(Cost $676,295) 676,295
----------
TOTAL INVESTMENTS -- 99.5%
(Cost $9,875,589) 9,923,351
----------
OTHER ASSETS AND LIABILITIES, NET -- 0.5% $ 47,640
----------
</TABLE>
13
<PAGE>
AMERINDO HEALTH & BIOTECHNOLOGY FUND
STATEMENT OF NET ASSETS (CONCLUDED)
OCTOBER 31, 2000
<TABLE>
<CAPTION>
VALUE
------------
<S> <C>
NET ASSETS:
Fund Shares of Class D
(forty million authorized-$.001 par value)
based on 438,575 outstanding shares of beneficial interest ............... $6,039,110
Fund Shares of Class A
(forty million authorized-$.001 par value)
based on 153,000 outstanding shares of beneficial interest ............... 2,134,894
Fund Shares of Class C
(forty million authorized-$.001 par value)
based on 91,758 outstanding shares of beneficial interest ................ 1,273,401
Accumulated net realized gain on investments ................................ 475,824
Net unrealized appreciation on investments .................................. 47,762
----------
TOTAL NET ASSETS -- 100.0% $9,970,991
==========
Net Asset Value, Offering and Redemption Price per Share -- Class D.......... $ 14.60
==========
Net Asset Value and Redemption Price per Share -- Class A.................... $ 14.59
==========
Maximum Offering Price per Share -- Class A ($14.59 / 94.25%)**.............. $ 15.48
==========
Net Asset Value, Offering and Redemption Price per Share -- Class C.......... $ 14.55
==========
<FN>
* ALL COMMON STOCK HELD AS OF OCTOBER 31, 2000 ARE NON-INCOME PRODUCING.
** 5.75% REPRESENTS THE MAXIMUM SALES CHARGE (LOAD) IMPOSED ON PURCHASES.
PLC -- PUBLIC LIABILITY COMPANY
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
This page intentionally left blank.
<PAGE>
AMERINDOFUNDS
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
TECHNOLOGY FUND
------------------
FOR THE YEAR ENDED
OCTOBER 31, 2000
------------------
<S> <C>
INCOME
Interest ................................................. $ 1,016,977
-------------
EXPENSES
Investment advisory fees (Note 4) ........................ 8,137,161
Investment advisory fees waiver (Note 4) ................. --
Investment advisory reimbursement (Note 4) ............... --
Distribution fees-- Class D (Note 5) ..................... 1,284,259
Distribution fees-- Class A (Note 5) ..................... 57,530
Distribution fees-- Class C (Note 5) ..................... 34,676
Professional fees ........................................ 326,860
Administration and accounting fees ....................... 560,383
Transfer agents fees ..................................... 478,325
Registration fees ........................................ 317,588
Directors' fees and expenses ............................. 75,056
Amortization of organization expenses (Note 2) ........... 55,867
Printing ................................................. 208,909
Custodian fees ........................................... 61,478
Miscellaneous ............................................ 7,601
-------------
Net expenses before expenses paid indirectly reimbursed .. 11,605,693
Less: expenses paid indirectly reimbursed (Note 2) ....... (60,000)
-------------
Total Net expenses ....................................... 11,545,693
-------------
Net investment loss ...................................... (10,528,716)
-------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from investment
transactions .......................................... (14,560,855)
Net change in unrealized appreciation (depreciation)
of investments ........................................ (111,659,603)
-------------
Total net realized and unrealized
gain (loss) on investments ............................ (126,220,458)
-------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS .......................................... $(136,749,174)
=============
<FN>
*The Fund commenced operations on May 30, 2000.
</FN>
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
AMERINDOFUNDS
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
INTERNET B2B FUND HEALTH & BIOTECHNOLOGY FUND
-------------------- ---------------------------
FOR THE PERIOD ENDED FOR THE PERIOD ENDED
OCTOBER 31, 2000* OCTOBER 31, 2000*
-------------------- ---------------------------
<S> <C> <C>
INCOME
Interest ................................................. $ 57,841 $ 18,891
--------- ---------
EXPENSES
Investment advisory fees (Note 4) ........................ 56,266 26,125
Investment advisory fees waiver (Note 4) ................. (56,266) (26,125)
Investment advisory reimbursement (Note 4) ............... (39,839) (72,785)
Distribution fees-- Class D (Note 5) ..................... 8,196 3,832
Distribution fees-- Class A (Note 5) ..................... 1,223 1,096
Distribution fees-- Class C (Note 5) ..................... 3,967 3,009
Professional fees ........................................ 28,222 26,252
Administration and accounting fees ....................... 48,206 48,206
Transfer agents fees ..................................... 18,033 17,623
Registration fees ........................................ 3,417 2,227
Directors' fees and expenses ............................. 14 14
Amortization of organization expenses (Note 2) ........... -- --
Printing ................................................. 729 729
Custodian fees ........................................... 20,000 20,000
Miscellaneous ............................................ 4,254 2,826
--------- ---------
Net expenses before expenses paid indirectly reimbursed .. 96,422 53,029
Less: expenses paid indirectly reimbursed (Note 2) ....... -- --
--------- ---------
Total Net expenses ....................................... 96,422 53,029
--------- ---------
Net investment loss ...................................... (38,581) (34,138)
--------- ---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from investment
transactions .......................................... 545,334 509,962
Net change in unrealized appreciation (depreciation)
of investments ........................................ (91,850) 47,762
--------- ---------
Total net realized and unrealized
gain (loss) on investments ............................ 453,484 557,724
--------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS .......................................... $ 414,903 $ 523,586
========= =========
</TABLE>
17
<PAGE>
AMERINDOFUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
TECHNOLOGY FUND
------------------------------------------------------
FOR THE FOR THE FOR THE
YEAR ENDED PERIOD ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, DECEMBER 31,
2000 1999* 1998
-------------- -------------- --------------
<S> <C> <C> <C>
OPERATIONS
Net investment loss ................. $ (10,528,716) $ (835,279) $ (997,201)
Net realized gain (loss) from
investment transactions .......... (14,560,855) 89,294,885 11,408,771
Net change in unrealized
appreciation (depreciation)
of investments ................... (111,659,603) 17,013,105 21,783,873
------------- -------------- --------------
Net increase (decrease) in
net assets from operations ....... (136,749,174) 105,472,711 32,195,443
------------- -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net realized gains
Class D Shares ................... -- (83,960,097) --
Class A Shares ................... -- (2,644,686) --
Class C Shares ................... -- -- --
------------- -------------- --------------
Total distributions ................. -- (86,604,783) --
------------- -------------- --------------
CAPITAL SHARE
TRANSACTIONS
Net increase (decrease) (Note 6) .... 262,876,833 197,111,761 (7,389,154)
------------- -------------- --------------
Total increase in net assets ........ 126,127,659 215,979,689 24,806,289
NET ASSETS:
Beginning of period ................. 280,977,134 64,997,445 40,191,156
------------- -------------- --------------
End of period ....................... $ 407,104,793 $ 280,977,134 $ 64,997,445
============= ============== ==============
<FN>
* Subsequent to December 31, 1998, the Fund's management elected to change the
Fund's fiscal year end to October 31.
** The Fund commenced operations on May 30, 2000.
</FN>
</TABLE>
Amounts designated as "--" are either $0 or rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
AMERINDOFUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNET B2B FUND HEALTH & BIOTECHNOLOGY FUND
----------------- ---------------------------
FOR THE FOR THE
PERIOD ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31,
2000** 2000**
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment loss ................. $ (38,581) $ (34,138)
Net realized gain (loss) from
investment transactions .......... 545,334 509,962
Net change in unrealized
appreciation (depreciation)
of investments ................... (91,850) 47,762
---------- ----------
Net increase (decrease) in
net assets from operations ....... 414,903 523,586
---------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net realized gains
Class D Shares ................... -- --
Class A Shares ................... -- --
Class C Shares ................... -- --
---------- ----------
Total distributions ................. -- --
---------- ----------
CAPITAL SHARE
TRANSACTIONS
Net increase (decrease) (Note 6) 17,992,316 9,447,405
----------- ----------
Total increase in net assets ........ 18,407,219 9,970,991
NET ASSETS:
Beginning of period ................. -- --
----------- ----------
End of period ....................... $18,407,219 $9,970,991
=========== ==========
</TABLE>
19
<PAGE>
AMERINDOFUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
NOTE 1. ORGANIZATION
The Amerindo Technology Fund, the Amerindo Internet B2B Fund and the
Amerindo Health & Biotechnology Fund (collectively known as the "Funds") are
series of the Amerindo Funds Inc., a Maryland corporation, which commenced
operations on October 28, 1996. The Funds are each a non-diversified, open-end
management investment company registered under the Investment Company Act of
1940. Each Fund's investment objective is to seek long-term capital appreciation
by investing in the common stocks of technology companies.
The Funds offer three classes of shares to investors, Class D, Class A and
Class C shares. Class D shares are sold without an initial sales load with a
minimum investment of $2,500. Class A shares are sold subject to an initial
sales load of up to 5.75% with a minimum investment of $2,500. Class C shares,
are also sold without an initial sales load with a minimum investment of $2,500.
Class D, Class A, and C shares are subject to a fee of 2% on redemptions made
within the first year of purchase. Prior to November 1, 1999, Class D and Class
A shares were subject to a fee of 3% on redemptions made within the first year.
Class C shares are subject to a 1% maximum deferred sales charge on redemptions
within the first year of purchase.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies
consistently followed by the Funds in the preparation of their financial
statements. The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amount of assets and liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the period. Actual results could
differ from these estimates.
SECURITIES VALUATION -- Securities which are traded on any exchange or on
the NASDAQ over-the-counter market are valued at the last quoted sale price. In
the absence of a last sale price, a security is valued at its closing bid price
on such exchanges, or at the quoted bid price in the over-the-counter market.
Securities for which market quotations are not readily available are valued in
accordance with procedures established by the
20
<PAGE>
AMERINDOFUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Funds' Board of Directors (the "Board"), including use of an independent
pricing service or services which use prices based upon yields or prices of
comparable securities, indications as to values from dealers, and general market
conditions.
Short term investments in fixed income securities with maturities of less
than 60 days when acquired, or which subsequently are within 60 days of
maturity, are valued by using the amortized cost method of valuation, which the
Board has determined should represent fair value.
FEDERAL INCOME TAXES -- It is each Fund's intention to continue to qualify
as a regulated investment company for Federal income tax purposes and distribute
all of its taxable income and capital gains. Accordingly, no provision for
federal income taxes is required.
ORGANIZATION EXPENSES -- In April 1998, Statement of Position 98-5,
"Reporting on Costs of Start-Up Activities" ("SOP 98-5"), was issued requiring
start-up costs and organizational costs to be expensed as incurred. SOP 98-5
exempted investment companies that met certain criteria from retroactively
applying the provisions of this pronouncement and allowed them to continue to
amortize start-up costs and organization costs over the remaining amortization
period.
During its organization and initial registration with the Securities and
Exchange Commission (the "SEC"), the Technology Fund incurred organization
expenses of $279,807. In accordance with the provisions of SOP 98-5, the Fund
has elected to defer these expenses and amortize them on a straight-line basis
over a 60 month period beginning with the Fund's commencement of operations.
During the year ended October 31, 2000, $55,867 was amortized.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until maturity of the repurchase
agreements. Provisions of the repurchase agreements and procedures adopted by
the Board of Trustees require that the market value of the collateral, including
accrued interest thereon, is sufficient in the event of default by the
counterparty. If the counterparty defaults and the value of the collateral
declines or if the counterparty enters an insolvency proceeding, realization of
the collateral by the Portfolio may be delayed or limited.
21
<PAGE>
AMERINDOFUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONCLUDED)
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date and interest income is
recognized on an accrual basis. Costs used in determining net realized gains and
losses on the sales of investment securities are those of the specific
securities sold adjusted for the accretion and amortization of purchase
discounts and premiums during the respective holding period. Purchase discounts
and premiums on securities held by the Funds are accreted and amortized to
maturity using the scientific interest method, which approximates the effective
interest method. At October 31, 2000, no securities were held which require
amortization of discounts or premiums.
INCOME AND EXPENSES -- All income earned and expenses incurred by the Funds
are borne on a pro-rata basis by each outstanding class of shares, based on the
proportionate interest in the Fund represented by the shares of such class,
except that the Funds' Class C shares bear higher distribution fees than Class
Dand A shares.
Through a separate contractual agreement, The Northern Trust Company serves
as the Funds' custodian. In the Statement of Operations for the Amerindo
Technology Fund, expenses paid indirectly represent a reduction of custodian
fees for earnings on cash balances. For the year ended October 31, 2000, such
amount was $60,000.
DIVIDENDS AND DISTRIBUTIONS -- Dividends and distributions to shareholders
are recorded on the ex-dividend date. The timing and characterization of certain
income and capital gains distributions are determined annually in accordance
with federal tax regulations which may differ from accounting principles
generally accepted in the United States of America. 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.
These book/tax differences may be temporary or permanent in nature. To the
extent these differences are permanent, they are charged or credited to
paid-in-capital or accumulated net realized gain, as appropriate, in the period
that the differences arise.
Accordingly, the following permanent differences, primarily attributable to
net operating losses and the classification of short-term capital gains and
ordinary income for tax purposes, have been reclassified to (from) the following
accounts:
<TABLE>
<CAPTION>
ACCUMULATED NET ACCUMULATED NET
PAID-IN-CAPITAL INVESTMENT INCOME (LOSS) REALIZED GAIN (LOSS)
-------------- ---------------------- --------------------
<S> <C> <C> <C>
Amerindo Technology Fund $(10,472,268) $10,472,268 $ --
Amerindo Internet B2B Fund -- 38,581 (38,581)
Amerindo Health &
Biotechnology Fund -- 34,138 (34,138)
</TABLE>
These reclassifications had no effect on net assets or net asset values per
share.
22
<PAGE>
AMERINDOFUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
NOTE 3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of investment securities (other than short-term
investments), for the year ended October 31, 2000, are as follows:
<TABLE>
<CAPTION>
AMERINDO
AMERINDO AMERINDO HEALTH &
TECHNOLOGY INTERNET B2B BIOTECHNOLOGY
FUND FUND FUND
------------- ------------ ------------
<S> <C> <C> <C>
Purchases $404,786,959 $15,680,211 $11,357,913
Sales 153,326,105 4,521,633 2,668,581
</TABLE>
At October 31, 2000 the cost of investments for federal income tax purposes
was $477,873,878 for the Amerindo Technology Fund, $18,230,865 for the Amerindo
Internet B2B Fund, and $10,068,857 for the Amerindo Health & Biotechnology Fund.
The aggregate gross unrealized appreciation and depreciation for securities held
by the Funds at October 31, 2000 are as follows.
<TABLE>
<CAPTION>
AMERINDO
AMERINDO AMERINDO HEALTH &
TECHNOLOGY INTERNET B2B BIOTECHNOLOGY
FUND FUND FUND
------------- ------------- -------------
<S> <C> <C> <C>
Aggregate gross unrealized appreciation $131,893,523 $1,496,913 $1,018,032
Aggregate gross unrealized depreciation (201,432,257) (1,588,763) (970,270)
------------ ---------- ----------
Book net unrealized appreciation
(depreciation) (69,538,734) (91,850) 47,762
Less: Tax basis adjustments (638,002) (51,562) (193,268)
------------ ---------- ----------
Tax net unrealized appreciation/
(depreciation) $(70,176,736) $ (143,412) $ (145,506)
============ ========== ==========
</TABLE>
For Federal income tax purposes the Amerindo Technology Fund had a capital
loss carryforward of $13,922,853 at October 31, 2000 which may be carried
forward and applied against future capital gains. The capital loss carryforward
expires in 2008.
23
<PAGE>
AMERINDOFUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
NOTE 4. INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS
The Funds have an agreement with the Amerindo Investment Advisors Inc.,
(the "Advisor"), with whom certain officers and directors of the Funds are
affiliated, to serve as investment advisors and managers. Under the terms of the
agreement, a monthly fee is paid to the investment advisor of 0.125% (1.50% on
an annual basis) of the average daily net assets. This advisory agreement is
subject to an annual review by the Board.
The Advisor has agreed to a reduction in the amounts payable to it and to
reimburse the Funds for any expenses (including the advisory fee, but excluding
taxes, interest and brokerage fees and extraordinary expenses incurred in
connection with any matter not in the ordinary course of business of the Funds)
over 2.25%, 2.25% and 3.00% of the average daily net asset values of the Class
D, Class A, and Class C shares, respectively. Prior to November 1, 1999, the
Advisor reimbursed the fund for any applicable expenses over 2.25% and 2.50% of
average daily net asset values of Class D and Class A shares, respectively.
For the year ended October 31, 2000, the Advisor earned advisory fees of
$8,137,161, $56,266 and $26,125 for the Amerindo Technology Fund, the Amerindo
Internet B2B Fund and the Amerindo Health & Biotechnology Fund, respectively,
and reimbursed the Funds $0, $96,105 and $98,910 respectively, in expenses.
The Advisor and SEI Investments Mutual Funds Services (the "Administrator")
are parties to an agreement under which the Administrator provides management
and administrative services for an annual fee of 0.125% of the average daily net
assets of the Fund up to $250 million, 0.09% on the next $250 million, 0.07% on
the next $500 million and 0.05% of such assets in excess of $1 billion.
Forum Shareholder Services LLC (the "Transfer Agent") is the transfer agent
and dividends disbursing agent for the Funds under a transfer agency agreement
with Amerindo Funds Inc.
24
<PAGE>
AMERINDOFUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
NOTE 5. DISTRIBUTION FEES
Amerindo Funds Inc. and SEI Investments Distribution Co. (the
"Distributor") are parties to a Distribution Agreement dated September 15, 1999.
The Fund has adopted a Distribution Plan (the "Plan") for Class D, Class A, and
Class C shares. Under the terms of the Plan, each Fund pays the Distributor a
monthly distribution fee at an annual rate of 0.75% and a shareholder service
fee equal to 0.25% of the average daily net assets of the Class C shares and a
distribution fee at an annual rate of 0.25% of the Class Ashares average daily
net assets, which may be used by the Distributor to provide compensation for
sales support and distribution activities. Each Fund has also adopted a
distribution and service plan on behalf of the Class D shares which compensates
the Advisor 0.25% of the average daily net assets of the Class D shares for
providing services to shareholders. Prior to November 1, 1999, each Fund paid
the Distributor a monthly distribution fee at an annual rate of 0.50% of the
average daily net assets of the Fund's Class A shares and 0.25% of the Class D
shares.
For the year ended October 31, 2000, the Funds incurred distribution fees
as follows:
<TABLE>
<CAPTION>
AMERINDO
AMERINDO AMERINDO HEALTH &
TECHNOLOGY INTERNET B2B BIOTECHNOLOGY
FUND FUND FUND
---------------- ------------ -------------
<S> <C> <C> <C>
Class D $1,284,259 $8,196 $3,832
Class A 57,530 1,223 1,096
Class C 34,676 3,967 3,009
</TABLE>
25
<PAGE>
AMERINDOFUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
NOTE 6. FUND SHARE TRANSACTIONS
At October 31, 2000 there were one billion shares of $0.001 par value
capital stock authorized. Transactions in capital stock for the indicated
periods were as follows:
<TABLE>
<CAPTION>
TECHNOLOGY FUND
---------------------
CLASS D SHARES
FOR THE FOR THE FOR THE
YEAR ENDED PERIOD ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999* DECEMBER 31, 1998
--------------------------- --------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold ....... 16,617,205 $506,694,217 5,699,786 $166,007,792 779,033 $ 6,936,614
Shares issued in
reinvestment of
distributions from
realized gains -- -- 3,197,880 75,214,130 -- --
Shares redeemed ... (9,411,906) (273,435,653) (2,010,955) (51,808,109) (1,518,536) (14,896,561)
---------- ------------ ---------- ------------ ----------- ------------
Net increase
(decrease) ..... 7,205,299 $233,258,564 6,886,711 $189,413,813 (739,503) $ (7,959,947)
========== ============ ========== ============ =========== =============
</TABLE>
<TABLE>
<CAPTION>
TECHNOLOGY FUND
---------------------
CLASS A SHARES
FOR THE FOR THE FOR THE PERIOD
YEAR ENDED PERIOD ENDED AUGUST 31, 1998+ THROUGH
OCTOBER 31, 2000 OCTOBER 31, 1999* DECEMBER 31, 1998
--------------------------- --------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold ....... 1,058,462 $ 31,241,156 242,687 $ 6,197,102 60,778 $ 589,063
Shares issued in
reinvestment of
distributions from
realized gains -- -- 108,793 2,575,121 -- --
Shares redeemed ... (350,485) (9,539,941) (39,002) (1,074,275) (1,647) (18,270)
---------- ------------ ---------- ------------ ---------- ---------
Net increase ...... 707,977 $ 21,701,215 312,478 $ 7,697,948 59,131 $ 570,793
========== ============ ========== ============ =========== =========
</TABLE>
26
<PAGE>
AMERINDOFUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
TECHNOLOGY FUND
--------------------------
CLASS C SHARES
FOR THE PERIOD
DECEMBER 15, 1999**
THROUGH OCTOBER 31, 2000
------------------------
SHARES AMOUNT
---------- ----------
Shares sold ................... 283,881 $8,429,872
Shares issued in
reinvestment
of distributions
from realized gains ........ -- --
Shares redeemed (19,472) (512,818)
---------- ----------
Net increase .................. 264,409 $7,917,054
=========== ==========
+ Commencement of operations of Class A shares.
* Subsequent to December 31, 1998, the Fund's management elected to change
the Fund's fiscal year end to October 31.
** Commencement of operations of Class C shares.
Amounts designated as "--" are either $0 or rounded to $0.
INTERNET B2B FUND
-----------------
<TABLE>
<CAPTION>
CLASS D SHARES CLASS A SHARES
FOR THE PERIOD FOR THE PERIOD
MAY 30, 2000* MAY 30, 2000*
THROUGH OCTOBER 31, 2000 THROUGH OCTOBER 31, 2000
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
Shares sold ............ 941,016 $15,449,745 120,012 $1,971,451
Shares issued in
reinvestment
of distributions
from realized gains -- -- -- --
Shares redeemed ....... (42,538) (732,588) (12,125) (219,444)
-------- ----------- -------- ----------
Net increase .......... 898,478 $14,717,157 107,887 $1,752,007
======== =========== ======== ==========
</TABLE>
27
<PAGE>
AMERINDOFUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
<TABLE>
<CAPTION>
INTERNET B2B FUND
------------------------
CLASS C SHARES
FOR THE PERIOD
MAY 30, 2000*
THROUGH OCTOBER 31, 2000
------------------------
SHARES AMOUNT
--------- ----------
<S> <C> <C>
Shares sold .......................................................... 90,477 $1,523,164
Shares issued in
reinvestment
of distributions
from realized gains ............................................... -- --
Shares redeemed ...................................................... -- (12)
--------- ----------
Net increase 90,477 $1,523,152
..................................................................... ========= ==========
<FN>
* Commencement of operations for the Internet B2B Fund.
</FN>
</TABLE>
Amounts designated as "--" are either $0 or rounded to $0.
<TABLE>
<CAPTION>
HEALTH & BIOTECHNOLOGY FUND
---------------------------
CLASS D SHARES CLASS A SHARES
FOR THE PERIOD FOR THE PERIOD
MAY 30, 2000* MAY 30, 2000*
THROUGH OCTOBER 31, 2000 THROUGH OCTOBER 31, 2000
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Shares sold ................... 456,406 $6,288,186 158,466 $2,216,987
Shares issued in reinvestment
of distributions from
realized gains ............. -- -- -- --
Shares redeemed ............... (17,831) (249,076) (5,466) (82,093)
-------- ---------- -------- ----------
Net increase 438,575 $6,039,110 153,000 $2,134,894
======== ========== ======== ==========
</TABLE>
28
<PAGE>
AMERINDOFUNDS
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
OCTOBER 31, 2000
<TABLE>
<CAPTION>
HEALTH & BIOTECHNOLOGY FUND
---------------------------
CLASS C SHARES
FOR THE PERIOD
MAY 30, 2000*
THROUGH OCTOBER 31, 2000
--------------------------
SHARES AMOUNT
-------- ----------
<S> <C> <C>
Shares sold ......................................... 91,758 $1,273,401
Shares issued in
reinvestment
of distributions
from realized gains .............................. -- --
Shares redeemed -------- ----------
Net increase ........................................ 91,758 $1,273,401
======== ==========
<FN>
* Commencement of operations for the Health & Biotechnology Fund.
</FN>
</TABLE>
Amounts designated as "--" are either $0 or rounded to $0.
NOTE 7. CONCENTRATION OF CREDIT RISK
Each Fund invests a substantial portion of its assets in securities
in a specific industry. Therefore, they may be more affected by economic and
political developments in that industry than would be a comparable general
equity fund.
29
<PAGE>
FINANCIAL HIGHLIGHTS AMERINDOFUNDS
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
REALIZED
AND
NET UNREALIZED DISTRIBUTIONS NET
ASSET NET GAIN ----------------------- ASSET
VALUE INVESTMENT (LOSS) NET REALIZED VALUE
BEGINNING INCOME ON INVESTMENT CAPITAL END TOTAL
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS OF PERIOD RETURN*
---------- ---------- ----------- ---------- -------- --------- -------
---------------
Technology Fund
---------------
Class D
<S> <C> <C> <C> <C> <C> <C> <C>
2000 $23.46 $ (0.60) $ (2.66) $ -- $ -- $20.20 (13.90)%
1999** 13.61 (0.07) 20.07 -- (10.15) 23.46 146.74
1998 7.37 (0.20) 6.44 -- -- 13.61 84.67
1997 9.00 (0.16) (1.47) -- -- 7.37 (18.11)
1996(1) 10.00 (0.04) (0.96) -- -- 9.00 (10.00)
Class A
2000 $23.61 $ (0.12) $ (3.18) $ -- $ -- $20.31 (13.98)%
1999** 13.59 (0.08) 20.25 -- (10.15) 23.61 148.20
1998(2) 8.44 (0.10) 5.25 -- -- 13.59 61.02
Class C
2000(3) $30.72 $ (0.33) $(10.31) $ -- $ -- $20.08 (34.64)%
--------------------
Internet B2B Fund(4)
--------------------
Class D
2000 $10.00 $ (0.03) $ 6.82 $ -- $ -- $16.79 67.91%
Class A
2000 $10.00 $ (0.04) $ 6.82 $ -- $ -- $16.78 67.89%
Class C
2000 $10.00 $ (0.07) $ 6.79 $ -- $ -- $16.72 67.30%
------------------------------
Health & Biotechnology Fund(4)
------------------------------
Class D
2000 $10.00 $ (0.05) $ 4.65 $ -- $ -- $14.60 45.99%
Class A
2000 $10.00 $ (0.04) $ 4.63 $ -- $ -- $14.59 45.90%
Class C
2000 $10.00 $ (0.07) $ 4.62 $ -- $ -- $14.55 45.51%
<FN>
* Total return is for the period indicated and has not been annualized. Total
investment return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period, and redemption on the last
day of the period. Initial sales charges are not reflected in the calculation
of total investment return.
** Subsequent to December 31, 1998, the Fund's management elected to change the
Fund's fiscal year end to October 31. All ratios for the period have been
annualized.
(1) Commenced operations on October 28, 1996. All ratios for the period have been annualized.
(2) Commenced operations on August 3, 1998. All ratios for the period have been annualized.
(3) Commenced operations on December 15, 1999. All ratios for the period have been annualized.
(4) Commenced operations on May 30, 2000. All ratios for the period have been annualized.
</FN>
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
<TABLE>
<CAPTION>
RATIO RATIO
OF NET OF NET
NET RATIO INVESTMENT INVESTMENT
ASSETS RATIO OF EXPENSES INCOME INCOME (LOSS)
END OF OF EXPENSES TO AVERAGE (LOSS) TO TO AVERAGE
PERIOD TO AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO
(000) NET ASSETS (EXCLUDING WAIVER) NET ASSETS (EXCLUDING WAIVER) TURNOVER
------ ----------- ------------------ ---------- ------------------ ---------
---------------
Technology Fund
---------------
Class D
<S> <C> <C> <C> <C> <C> <C>
2000 $379,869 2.13% 2.13% (1.94)% (1.94)% 30.51%
1999** 272,205 2.25 2.29 (0.64) (0.68) 170.00
1998 64,194 2.25 2.75 (2.21) (2.72) 78.46
1997 40,191 2.25 2.83 (2.25) (2.83) 355.21
1996(1) 34,210 2.25 3.82 (2.25) (3.82) 0.00
Class A
2000 $ 21,926 2.15% 2.15% (1.97)% (1.97)% 30.51%
1999** 8,772 2.50 2.54 (0.75) (0.79) 170.00
1998(2) 803 2.50 2.86 (2.40) (2.76) 78.46
Class C
2000(3) $ 5,310 2.96% 2.96% (2.80)% (2.80)% 30.51%
--------------------
Internet B2B Fund(4)
--------------------
Class D
2000 $ 15,084 2.23% 4.55% (0.84)% (3.16)% 61.39%
Class A
2000 $ 1,810 2.23% 4.36% (0.91)% (3.04)% 61.39%
Class C
2000 $ 1,513 2.97% 5.09% (1.64)% (3.76)% 61.39%
------------------------------
Health & Biotechnology Fund(4)
------------------------------
Class D
2000 $ 6,403 2.22% 6.46% (1.38)% (5.62)% 55.63%
Class A
2000 $ 2,233 2.22% 6.76% (1.41)% (5.95)% 55.63%
Class C
2000 $ 1,335 2.96% 7.22% (2.19)% (6.45)% 55.63%
</TABLE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
AMERINDO FUNDS INC.
We have audited the accompanying statements of net assets of the Amerindo
Technology Fund, the Amerindo Internet B2B Fund and the Amerindo Health and
Biotechnology Fund (collectively, the "Funds") as of October 31, 2000, and the
related statements of operations, changes in net assets and the financial
highlights for the periods 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 audits. The Funds' financial statements and financial highlights
for the periods ended prior to October 31, 2000 were audited by other auditors
whose report, dated November 17, 1999, expressed an unqualified opinion on those
statements.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and the 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
securities owned as of October 31, 2000 by correspondence with the Funds'
custodian and brokers. 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, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the Amerindo
Technology Fund, the Amerindo Internet B2B Fund and the Amerindo Health and
Biotechnology Fund as of October 31, 2000, the results of their operations, the
changes in their net assets and the financial highlights for each of the period
then ended in conformity accounting principles generally accepted in the United
States of America.
/s/signature omitted
Deloitte & Touche LLP
New York, New York
December 15, 2000
32
<PAGE>
<PAGE>
INVESTMENT ADVISOR
--------------------------------------------------------------------------------
AMERINDO INVESTMENT ADVISORS INC.
SAN FRANCISCO, CALIFORNIA/NEW YORK, NEW YORK
ADMINISTRATOR
--------------------------------------------------------------------------------
SEI INVESTMENTS MUTUAL FUNDS SERVICES
OAKS, PENNSYLVANIA
DISTRIBUTOR
--------------------------------------------------------------------------------
SEI INVESTMENTS DISTRIBUTION CO.
OAKS, PENNSYLVANIA
TRANSFER AND DIVIDEND AGENT
--------------------------------------------------------------------------------
FORUM SHAREHOLDER SERVICES LLC
PORTLAND, MAINE
CUSTODIAN
--------------------------------------------------------------------------------
THE NORTHERN TRUST COMPANY
CHICAGO, ILLINOIS
LEGAL COUNSEL
--------------------------------------------------------------------------------
PAUL, HASTINGS, JANOFSKY & WALKER, LLP
NEW YORK, NEW YORK
INDEPENDENT AUDITORS
--------------------------------------------------------------------------------
DELOITTE & TOUCHE, LLP
NEW YORK, NEW YORK
1-888-832-4386
WWW.AMERINDO.COM
AME-F-001-03
