WWW TRUST
WWW INTERNET FUND
ANNUAL REPORT
JUNE 30, 1998
INVESTING IN THE FASTEST GROWING SEGMENT OF TECHNOLOGY
<PAGE>
July 14, 1998
FELLOW
SHAREHOLDERS
The WWW INTERNET FUND completed its second fiscal year of operations on June 30,
1998 with a 15.96% return. Compared to Science and Technology funds this placed
us in the top quartile of all similar funds over the same period according to
Lipper Analytical Services. In keeping with our investment discipline to seek
growth and value, we continued to take profits in stocks of companies that
exceeded reasonable valuation benchmarks and re-deployed the proceeds in
companies that offer greater value to shareholders. Recent additions to the
portfolio include EGGHEAD.COM, INC., 800 TRAVEL SYSTEMS, INC., USWEB
CORPORATION, VERIO, INC., TELIGENT, INC. AND VERISIGN, INC.
This "Sell Discipline" of taking profits in Internet company stocks that have
exceeded next year's price expectations diminished the Fund's performance
compared to Internet Indices, but we believe it remains a prudent strategy given
the speculative levels of many Adolescent Internet issues. Exuberant interest
causes speculation and stock price swings to excessive highs and lows. Moreover,
it is important to remember that the Internet is an entirely new industry in the
embryonic stage of its development. Our efforts are focused on monitoring actual
company progress and staying abreast of emerging trends developing in the
Internet industry. For the patient investor seeking growth through capital
appreciation, prospects for superior investment returns versus the broad market
are excellent over the long term.
Looking forward in the near term we believe the market is under pressure due to
problems in Asia. We caution shareholders to expect greater price swings until
later this year when solutions to these problems stabilize the markets.
Meanwhile shareholders may want to start a Systematic Investment Plan (SIP) to
add money each month in order to dollar cost average into the Fund.
Alternatively you may want to simply add money on drops that occur in the
market.
<PAGE>
The WWW INTERNET FUND'S NET NICHE(TM) strategy of investing in a mix of Mature,
Midlife and Adolescent Internet companies allows us to diversify among the
Internet market segments in order to seek high growth with greater safety. In
the third quarter we should receive our trading symbol for listing on the
NASDAQ. Next year after our three year anniversary the reporting services of
Morningstar and Lipper should follow us on a regular basis. We look forward to
these milestone benchmarks and will notify all shareholders as they occur.
Thank you for your continued support.
Sincerely,
/s/
Lawrence York
CHAIRMAN, PRESIDENT AND
SENIOR PORTFOLIO MANAGER
2
<PAGE>
WWW INTERNET FUND PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AUGUST 1, 1996 TO JUNE 30, 1998
[GRAPH DEPICTED HERE]
GRAPH SHOWS THE COMPARISON OF A $10,000 INVESTMENT FROM AUGUST 1, 1996 TO JUNE
30, 1998 BETWEEN WWW INTERNET FUND AND THE BENCHMARKS, S&P 500 INDEX AND
INTERACTIVE WK INTERNET.
WWW S&P 500 INTERACTIVE WK INTERNET
MONTH $AMOUNT $ AMOUNT $ AMOUNT
- ----- ------- -------- --------
AUG-96 $10,110 $10,188 10,465
SEP-96 11,110 10,740 11,979
OCT-96 10,700 11,020 11,405
NOV-96 11,740 11,829 12,508
DEC-96 11,299 11,575 11,499
JAN-97 11,859 12,285 12,243
FEB-97 10,474 12,358 10,094
MAR-97 9,608 11,831 9,242
APR-97 9,821 12,522 9,293
MAY-97 11,421 13,255 11,638
JUN-97 11,196 13,831 11,231
JUL-97 12,735 14,912 13,315
AUG-97 12,735 14,055 12,921
SEP-97 12,969 14,802 13,606
OCT-97 12,154 14,292 12,705
NOV-97 12,093 14,929 12,455
DEC-97 11,347 15,164 12,261
JAN-98 11,869 15,318 12,992
FEB-98 12,936 16,397 14,334
MAR-98 13,268 17,216 14,659
APR-98 13,517 17,372 15,348
MAY-98 12,509 17,045 14,957
JUN-98 12,983 17,717 18,053
PERFORMANCE REFLECTS REINVESTMENT OF CAPITAL GAINS AND DIVIDEND DISTRIBUTIONS.
THE PERFORMANCE DATA QUOTED ABOVE REPRESENTS PAST PERFORMANCE, WHICH IS NO
GUARANTEE OF FUTURE RESULTS. PERFORMANCE DOES NOT INCLUDE 1% FIRST YEAR
REDEMPTION FEE. INVESTMENT RETURNS AND PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
3
<PAGE>
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
WWW TRUST
WWW INTERNET FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998
NUMBER MARKET
OF SHARES VALUE
--------- -----
COMMON STOCKS - 100%
BROADCAST & INFORMATION RESOURCES - 11.36%
<S> <C> <C>
ACTV Inc.** ......................................... 30,000 $ 59,062
Alliance Communications Corporation Cl B ** ......... 4,000 69,000
CBS Corporation ..................................... 3,000 95,250
USA Networks Inc.** ................................. 3,000 75,375
298,687
COMMUNICATION & TELECOM SERVICES / EQUIPMENT - 17.02%
Andrew Corporation** ................................ 3,000 54,187
Cincinnati Bell Inc. ................................ 2,000 57,250
GTE Corporation ..................................... 700 38,938
General Instrument Corporation** .................... 2,000 54,375
Glenayre Technologies Inc.** ........................ 2,000 21,500
Qualcomm Inc.** ..................................... 2,000 112,375
Teligent Inc. Cl A ** ............................... 2,000 58,875
Verio Inc.** ........................................ 2,000 49,750
447,250
COMPUTERS & COMPUTER PERIPHERAL - 8.40%
Compaq Computer Corporation ......................... 4,000 113,500
International Business Machines Corporation ......... 800 91,850
Tech Squared Inc.** ................................. 5,000 15,469
220,819
COMPUTER SOFTWARE / INTERNET TOOLS - 12.59%
Alpha Microsystems** ................................ 10,000 25,625
Alydaar Software Corporation** ...................... 2,000 25,375
Edify Corporation** ................................. 3,500 35,438
Hummingbird Communications Ltd** .................... 1,000 26,750
INSO Corporation** .................................. 3,000 41,062
Novell Inc.** ....................................... 3,000 38,250
Peoplesoft Inc.** ................................... 1,000 47,000
Spyglass Inc.** ..................................... 8,000 91,500
331,000
4
<PAGE>
WWW TRUST
WWW INTERNET FUND
STATEMENT OF NET ASSETS (continued)
JUNE 30, 1998
NUMBER MARKET
OF SHARES VALUE
--------- -----
DATA COMMUNICATION / NETWORKING EQUIPMENT - 13.55%
3Com Corporation** .................................. 2,500 $76,719
Adaptec Inc.** ...................................... 2,000 28,625
Ascend Communication Inc.** ......................... 3,200 158,600
Cisco Systems Inc.** ................................ 1,000 92,063
356,007
ELECTRONIC COMMERCE - 16.53%
800 Travel Systems Inc.** ........................... 5,000 32,500
Checkfree Holdings Corporation** .................... 4,000 117,750
Data Broadcasting Corporation** ..................... 7,000 44,625
First Data Corporation .............................. 800 26,650
Harbinger Corporation** ............................. 2,025 48,979
National Data Corporation ........................... 1,000 43,750
Reynolds & Reynolds Co. Cl A ........................ 4,000 72,750
USWEB Corporation** ................................. 2,000 47,375
434,379
FIREWALL & INTERNET / NETWORK SECURITY - 4.81%
Axent Technologies Inc.** ........................... 1,200 36,750
Check Point Software Technologies Ltd** ............. 800 26,200
Security Dynamics Technologies Inc.** ............... 800 14,800
Verisign Inc.** ..................................... 1,300 48,588
126,338
ON-LINE RETAILING - 4.93%
Cendant Corporation ................................. 2,000 41,750
E Trade Group Inc. ** ............................... 2,000 45,875
Egghead.Com Inc. ** ................................. 5,000 42,187
129,812
SEMICONDUCTORS & EQUIPMENT MAKERS - 10.81%
Altera Corporation .................................. 2,000 59,125
C-Cube Microsystems Inc. ** ......................... 2,500 46,406
Motorola Inc. ....................................... 2,000 105,125
S3 Inc. ** .......................................... 3,000 15,188
Texas Instruments Inc. .............................. 1,000 58,312
284,156
-------
5
<PAGE>
NUMBER MARKET
OF SHARES VALUE
--------- -----
TOTAL COMMON STOCK (Cost $2,569,422) ............... $ 2,628,448
MUTUAL FUNDS - 3.42%
Star Bank Treasury Fund (Cost $89,856) ............. 89,856 89,856
-----------
TOTAL MARKET VALUE OF SECURITIES
OWNED - 103.42% (Cost $2,659,278) ............... 2,718,304
LIABILITIES IN EXCESS OF OTHER ASSETS - (3.42%) ... (89,979)
-----------
NET ASSETS - 100%
($10.95 PER SHARE, BASED ON 240,014
SHARES OUTSTANDING) ........................... $ 2,628,325
===========
COMPONENTS OF NET ASSETS
Paid in capital...................................... $ 2,458,129
Accumulated undistributed income (loss):
Net realized gain from security transactions ... 111,170
Net unrealized appreciation of investments 59,026
-----------
NET ASSETS ..................................................$ 2,628,325
===========
<FN>
** NON-INCOME PRODUCING SECURITY FOR THE YEAR ENDED JUNE 30, 1998
</FN>
</TABLE>
See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
WWW TRUST
WWW INTERNET FUND
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1998
INVESTMENT INCOME:
<S> <C> <C>
Dividends ........................................... $ 6,178
Interest ............................................ 8,834
-------
TOTAL INVESTMENT INCOME ............................. $ 15,012
OPERATING EXPENSES:
Investment advisory fees ............................ 14,396
Administrative fees ................................. 35,328
Distributor fees .................................... 12,228
Directors fees ...................................... 8,000
Amortization of organization
expenses ........................................ 13,199
Website ............................................. 10,026
Registration fees ................................... 6,603
Transfer agent fees ................................. 1,200
Accounting fees ..................................... 5,100
Custodian fees ...................................... 6,928
Errors & Omissions insurance ........................ 1,136
Legal fees .......................................... 4,239
Printing fees ....................................... 5,796
Miscellaneous ....................................... 317
-------
Total operating expenses ....................... 124,496
Less reimbursed expenses ........................ (63,310)
-------
NET OPERATING EXPENSES .......................................... 61,186
-------
NET INVESTMENT LOSS ............................................. (46,174)
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gain (loss) from investment transactions............ 224,862
Net unrealized appreciation of investments ...................... 191,091
-------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... 415,953
-------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ 369,779
=======
</TABLE>
See accompanying notes
7
<PAGE>
<TABLE>
<CAPTION>
WWW TRUST
WWW INTERNET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JUNE 30, 1998 AND
PERIOD FROM INCEPTION (AUGUST 1, 1996) THROUGH JUNE 30, 1997
1998 1997
------ ---------
OPERATIONS:
<S> <C> <C>
Net investment loss .......................... $ (46,174) $ (21,827)
Net realized gain from investment transactions 224,862 289,508
Net unrealized appreciation (depreciation)
of investments .......................... 191,091 (132,065)
----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................... 369,779 135,616
DISTRIBUTION TO SHAREHOLDERS:
Realized gain ................................ (306,145) (29,054)
FUND SHARE TRANSACTIONS:
Proceeds from shares sold .................... 1,490,785 1,770,779
Net asset value of
shares issued in reinvestment of dividends . 303,629 7,433
Payment for shares redeemed
(net of redemption fees) ................... (1,161,085) (53,412)
----------- -----------
NET CAPITAL SHARE TRANSACTIONS ............... 633,329 1,724,800
----------- -----------
NET INCREASE IN NET ASSETS ................... 696,963 1,831,362
NET ASSETS:
Beginning of period .......................... 1,931,362 100,000
----------- -----------
End of period ................................ $ 2,628,325 $ 1,931,362
=========== ===========
</TABLE>
See accompanying notes
8
<PAGE>
WWW TRUST
WWW INTERNET FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
1. ORGANIZATION
The WWW Trust (WWW Internet Fund), (the Fund) was organized as an Ohio business
trust, on April 23, 1996, and commenced operations on August 1, 1996. The Trust
is registered under the Investment Company ACT of 1940, as amended, as a
diversified, open end management investment company. The Trust is authorized to
issue an indefinite number of shares of beneficial interest, par value $.001 per
share. The Trust was formed to achieve the investment objective of long term
growth through capital appreciation by investing primarily in equity securities
of companies that are designing, developing or manufacturing hardware or
software products or services for the Internet and/or World Wide Web.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
SECURITIES VALUATIONS - Portfolio securities, including covered call options if
written by the Fund, are valued at the last sale price on the securities
exchange or national securities market on which such securities primarily are
traded. Securities not listed on an exchange or national securities market, or
securities in which there were no transactions, are valued at the average of the
most recent bid and asked prices, except in the case of open short positions
where the asked price is used for valuation purposes. Bid price is used when no
asked price is available. Short term investments are carried at amortized cost,
which approximates value. Any securities or other assets for which recent market
quotations are not readily available are valued at fair value as determined in
good faith by the Fund's Board of Trustees. Expenses and fees, including the
management fee and distribution and service fees, are accrued daily and taken
into account for the purpose of determining the net asset value of the Fund's
shares.
FEDERAL INCOME TAXES - The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
DIVIDENDS AND DISTRIBUTIONS - The Fund intends to distribute substantially all
of its net investment income as dividends to its shareholders on an annual
basis. The Fund intends to distribute its net long term capital gains and its
net short term capital gains at least once a year.
ORGANIZATION EXPENSES - During its organization and initial registration with
the Securities
9
<PAGE>
and Exchange Commission (the "SEC"), the Fund incurred organization expenses of
$65,993. The fund has elected to defer these expenses and amortize them on a
straight-line basis over a 60 month period beginning with the Funds'
commencement of operations. Amortization expense amounted to $13,199 for the
year ended June 30, 1998.
INVESTMENTS - The fund follows industry practice and records security
transactions on the trade date. The specific identification method is used for
determining gains or losses for financial statements and income tax purposes.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on an accrual basis.
3. INVESTMENT ADVISORY AGREEMENT
The Board of Trustees provides broad supervision over the affairs of the Fund.
Pursuant to a Management Agreement between the Fund and WWW Advisors, Inc. (the
"Manager") and subject to the authority of the Board of Trustees, the Manager
manages the investments of the Fund and is responsible for the overall
management of the business affairs of the Fund.
Under the terms of the Management Agreement, the Fund has agreed to pay the
manager a base monthly management fee at the annual rate of 1.00% of the Fund's
average daily net assets (the "Base Fee") which will be adjusted monthly (the
"Monthly Performance Adjustment") depending on the extent by which the
investment performance of the Fund, after expenses, exceeded or was exceeded by
the percentage change of the S&P 500 Index. Under terms of the Management
Agreement, the monthly performance adjustment may increase or decrease the total
management fee payable to the manager (the "Total Management Fee") by up to .50%
per year of the value of the Fund's average daily net assets.
All expenses incurred in the operation of the Fund will be borne by the Fund,
except to the extent it is specifically assumed by the manager. The expenses to
be borne by the Fund will include: organizational costs, taxes, interest,
brokerage fees and commissions, fees of board members who are not officers,
directors or employees of the Manager or its affiliates, Securities and Exchange
Commission fees, state Blue Sky qualification fees, advisory, administrative and
fund accounting fees, charges of custodians, transfer and dividend disbursing
agents fees, insurance premiums, industry association fees, outside auditing and
legal expenses, costs attributable to investor services (including, without
limitation, telephone and personnel expenses), costs of shareholders' reports
and meetings, costs of preparing and printing prospectuses and statements of
additional information, amounts payable under the Fund's Distribution and
Shareholder Servicing Plan and any extraordinary expenses.
The Manager has undertaken, until such time as it gives investors 60 days'
notice to the contrary, to waive its Management Fee in the amount, if any, by
which the total expenses of the Fund for any fiscal year, including amortization
of organizational expenses and amounts paid by the Fund exceed 2.50% of average
annual net assets of the Fund, except that the amount of such fee waiver shall
not normally exceed the amount of fees received by the
10
<PAGE>
WWW TRUST
WWW INTERNET FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
3. INVESTMENT ADVISORY AGREEMENT (continued)
Manager under the Management Agreement for such fiscal year. For the year ended
June 30, 1998, the manager has reimbursed all expenses in excess of 2.50%. The
fee waiver, if any, will be on a monthly basis, subject to year-end adjustment.
Interest expenses, taxes, brokerage fees and commissions, and extraordinary
expenses are not included as expenses for these purposes.
4. DISTRIBUTION AGREEMENT
Under a plan adopted by the Fund's Board of Trustees pursuant to Rule 12B-1
under the 1940 Act (the "Plan"), the Fund pays the Manager a shareholder
servicing and distribution fee at the annual rate of .50% of the average daily
net assets of the Fund. Such fee will be used in its entirety by the Manager to
make payments for administration, shareholder services and distribution
assistance, including, but not limiting to (1) compensation to securities
dealers and other organizations (each, a "Service Organization" and
collectively, the "Service Organizations"), for providing distribution
assistance with respect to assets invested in the Fund, (2) compensation to
Service Organizations for providing administration, accounting and other
shareholder services with respect to Fund shareholders, and (3) otherwise
promoting the sale of shares of the Fund, including paying for the preparation
of advertising and sales literature and the printing and distribution of such
promotional materials to prospective investors. The fees paid to the Manager
under the Plan are in addition to the fees payable under the Management
Agreement and are payable without regard to actual expenses incurred. The Fund
understands that third parties also may charge fees to their clients who are
beneficial owners of Fund shares in connection with their client accounts. These
fees would be in addition to any amounts which may be received by them from the
Manager under the Plan. For the year ended June 30, 1998, the amount paid or
accrued for such expenses was $12,228.
5. CAPITAL SHARE TRANSACTIONS
As of June 30, 1998 there was an unlimited number of $.001 par value shares of
capital shares authorized for the Fund.
11
<PAGE>
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
For the period
August 1, 1996
(Commencement of
FOR THE YEAR Operations) through
ENDED JUNE 30, 1998 June 30, 1997
------------------- -------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares sold ............... 132,448 $ 1,490,785 170,067 $ 1,770,779
Shares issued by
reinvestment of dividends 32,578 303,629 667 7,433
Shares redeemed ........... (100,817) (1,161,085) (4,928) (53,412)
-------- ----------- -------- -----------
Net increase .............. 64,209 $ 633,329 165,806 $ 1,724,800
======== =========== ======== ===========
</TABLE>
6. INVESTMENTS
For the year ended June 30, 1998, purchases and sales of investment securities,
other than short-term investments, aggregated $2,189,146 and $1,587,825
respectively. The gross unrealized appreciation for all securities totaled
$344,786 and the gross unrealized depreciation for all securities totaled
$285,760 for a net unrealized appreciation of $174,601. The aggregate cost of
securities for federal income tax purposes at June 30, 1998 was $2,659,278.
7. RELATED PARTY TRANSACTIONS
Certain owners of WWW Advisors, Inc. are also Owners and/or Trustees of the
Fund. These individuals may receive benefits from any Management fee paid to the
Advisor.
8. RECLASSIFICATION OF CAPITAL ACCOUNT
The Fund has adopted Statement of Position 93-2, Determination, Disclosure and
Financial Statement Presentation of Income, Capital Gain and Return of Capital
Distributions by Investment Companies. As a result of this statement, the Fund
changed the classification of distributions to shareholders to better disclose
the differences between financial statement amounts and distributions determined
in accordance with income tax regulations. Accordingly, undistributed net
investment loss has been adjusted to Accumulated Undistributed Net Realized Gain
as of June 30, 1998 in the following amounts. These restatements did not affect
net investment income, net realized gain (loss) or net assets for the year ended
June 30, 1998.
Undistributed net realized gain $ (46,174)
Undistributed net investment loss 46,174
12
<PAGE>
WWW TRUST
WWW INTERNET FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
9. DISTRIBUTIONS
For the year ended June 30, 1998, distributions of $1.53 aggregating $306,145
were made from short term capital gains.
10. FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the period
August 1, 1996
(Commencement of
FOR THE YEAR Operations) through
FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD: ENDED JUNE 30, 1998 June 30, 1997
------------------- -------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD .. $ 10.99 $ 10.00
Income (loss) from investment operations
Net investment loss .................. (0.21) (0.16)
Net realized and unrealized gains from
security transactions .............. 1.70 1.36
----------- -----------
Total ....................... 1.49 1.20
----------- -----------
Less distributions from realized gains
from security transactions ........... (1.53) (0.21)
----------- -----------
NET ASSET VALUE, END OF PERIOD ......... $ 10.95 $ 10.99
=========== ===========
TOTAL RETURN** ......................... 15.96% 13.08%*
=========== ===========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) . $ 2,628 $ 1,472
Ratio of expenses to average
net assets before reimbursement ... 5.10% 7.23%*
Ratio of expenses to average
net assets after reimbursement .... 2.50% 2.50%*
Ratio of net investment income
(loss) to average net assets ...... (4.47%) (1.62%)*
Ratio of net investment income
(loss) to average net assets,
net of reimbursement ............ (1.89%) (0.62%)*
Portfolio turnover rate .............. 70.52% 109.52%*
Average commission rate paid ......... $ 0.0173 $ 0.0676
<FN>
* ANNUALIZED
** BASED ON NET ASSET VALUE PER SHARE
</FN>
</TABLE>
13
<PAGE>
INDEPENDENT AUDITORS REPORT
To the Shareholders and
Board of Trustees
WWW Trust
We have audited the accompanying statement of net assets of the WWW Trust
comprising the WWW Internet Fund, including the schedule of portfolio
investments, as of June 30, 1998, and the related statements of operations and
changes in net assets, and financial highlights for the year then ended. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. The statement
of changes in net assets and financial highlights for the period from inception
(August 1, 1996) through June 30, 1997, were audited by other auditors whose
report dated July 22, 1997, expressed an unqualified opinion on those statements
and financial highlights.
We conducted our audit 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 June 30, 1998, by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the 1998 financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
WWW Trust as of June 30, 1998, the results of its operations, the changes in its
net assets and the financial highlights for the year then ended in conformity
with generally accepted accounting principles.
Berge & Company, LTD
Cincinnati, Ohio
July 16, 1998
14
<PAGE>
WWW Trust
WWW Internet Fund
INVESTMENT MANAGER & FUND
DISTRIBUTOR
WWW Advisors, Inc.
Lexington, KY
SHAREHOLDER SERVICING,
DIVIDEND DISBURSING AND TRANSFER AGENT
American Data Services, Inc.
Hauppauge, NY
PORTFOLIO SECURITIES CUSTODIAN
Star Bank, N.A.
Cincinnati, OH
GENERAL COUNSEL
Benesch, Friedlander, Coplan & Aronoff, P.L.L.
Cleveland, OH
SHAREHOLDER SERVICES
(888) 999-8331
SECURITIES DEALERS AND
FINANCIAL INSTITUTIONS
(888) 263-2204
WWW.INTERNETFUND.COM
1-888-263-2204
