August 20, 1999
Fellow Shareholders:
As chairperson and lead portfolio manager of the WWW Internet Fund, I
am very pleased with the progress and performance of the Fund during the fiscal
year ending June 30, 1999. The Fund's assets grew to $33.3 million from $2.6
million, only twelve months earlier. The WWW Internet Fund's performance was
equally as impressive. Our one-year return to shareholders was 112%, placing us
once again among the top 1% of all mutual funds in the country.
We accomplished this record performance through the market strength of
WWW Internet Fund's portfolio combined with our Net-Niche investment strategy of
utilizing a three tier mix of Mature, Mid-life, and Adolescent companies. We
believe this unique formula creates less risk to the Fund than investing solely
in new companies or IPOs.
Morningstar, a leading independent authority on mutual funds, recently
ranked WWW Internet Fund's performance and risk management in the top 67%-90% of
comparable funds, giving the Fund a four star rating. This was WWW Internet
Fund's first Morningstar rating and we could not be more pleased.
Looking forward to the second half of 1999, we will be monitoring WWW
Internet Fund's portfolio closely in anticipation of greater volatility as the
financial markets reflect concerns about Y2K and the possibility of higher
interest rates.
Co-manager Jim Greene and I, along with our staff, want to thank you for
your on-going support as we continue in our pursuit to profit from the growth of
the Internet as it evolves and changes our lives.
Sincerely,
/S/ LAWRENCE S. YORK
- --------------------
Lawrence S. York
Chairperson
<PAGE>
WWW INTERNET FUND S&P 500 INDEX
TICKER SPX
BEGINNING INVESTMENT=$10,000.00 BEGINNING INVESTMENT=$10,000.00
BEGINNING PRICE = 639.95
BEGINNING SHARES = 15.6262
MONTH ENDING $ MONTH ENDING $
AMOUNT AMOUNT
- ----- ------ ------ --------
Aug-96 $10,110.00 Aug-96 651.99 $10,188.14
Sep-96 $11,110.00 Sep-96 687.31 $10,740.06
Oct-96 $10,700.00 Oct-96 705.27 $11,020.70
Nov-96 $11,740.00 Nov-96 757.02 $11,829.36
Dec-96 $11,298.87 Dec-96 740.74 $11,574.97
Jan-97 $11,859.23 Jan-97 786.16 $12,284.71
Feb-97 $10,473.61 Feb-97 790.82 $12,357.53
Mar-97 $ 9,607.61 Mar-97 757.12 $11,830.92
Apr-97 $ 9,821.56 Apr-97 801.34 $12,521.92
May-97 $11,421.13 May-97 848.28 $13,255.41
Jun-97 $11,196.99 Jun-97 885.14 $13,831.39
Jul-97 $12,735.43 Jul-97 854.29 $14,911.95
Aug-97 $12,735.43 Aug-97 699.47 $14,055.32
Sep-97 $12,969.76 Sep-97 947.28 $14,802.41
Oct-97 $12,154.69 Oct-97 914.62 $14,292.05
Nov-97 $12,093.56 Nov-97 955.40 $14,929.29
Dec-97 $11,347.52 Dec-97 970.43 $15,164.15
Jan-98 $11,869.25 Jan-98 980.28 $15,318.07
Feb-98 $12,936.41 Feb-98 1,049.34 $16,397.22
Mar-98 $13,268.42 Mar-98 1,101.75 $17,216.19
Apr-98 $13,517.43 Apr-98 1,111.75 $17,372.45
May-98 $12,509.55 May-98 1,090.82 $17,045.39
Jun-98 $12,983.84 Jun-98 1,133.84 $17,717.63
Jul-98 $13,019.42 Jul-98 1,121.80 $17,529.49
Aug-98 $ 9,983.92 Aug-98 958.81 $14,982.56
Sep-98 $11,288.24 Sep-98 1,016.61 $15,917.02
Oct-98 $11,999.68 Oct-98 1,099.66 $17,183.53
Nov-98 $15,414.61 Nov-98 1,165.23 $18,208.14
Dec-98 $19,356.15 Dec-98 1,230.64 $19,230.27
Jan-99 $26,711.98 Jan-99 1,260.61 $20,011.09
Feb-99 $24,146.56 Feb-99 1,239.88 $19,374.64
Mar-99 $26,116.22 Mar-99 1,287.86 $20,124.38
Apr-99 $28,766.74 Apr-99 1,336.19 $20,879.60
May-99 $25,386.71 May-99 1,303.70 $20,371.90
Jun-99 $27,526.59 Jun-99 1,374.03 $21,470.90
<PAGE>
WWW TRUST
WWW INTERNET FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investments in securities, at value $ 32,228,616
Cash at custodian bank 1,000,000
Receivable for fund shares sold 162,892
Dividends and interest receivable 3,453
Due from advisor 148,710
Service deposit 5,000
Deferred organizational costs 14,117
------------
Total assets 33,562,788
LIABILITIES
Payables for fund shares redeemed 49,622
Accrued fees payable to investment advisor 174,200
Other accrued expenses 20,679
------------
Total liabilities 244,501
------------
NET ASSETS $ 33,318,287
============
NET ASSETS CONSIST OF
Capital shares $ 27,522,386
Accumulated net investment loss (232,807)
Accumulated net realized gains from investment transactions 28,467
Net unrealized appreciation on investments 6,000,241
------------
NET ASSETS $ 33,318,287
============
Net asset value, offering price and redemption price per share $ 22.64
============
Fund shares outstanding 1,471,530
============
</TABLE>
See accompanying notes to financial statements.
-1-
<PAGE>
WWW TRUST
WWW INTERNET FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JUNE 30, 1999
<TABLE>
<CAPTION>
COMMON STOCKS: 95.79%
SHARES VALUE
------ -----
Broadcast & Information Resources: 10.59%
<S> <C> <C>
ACTV Inc* 30,000 $ 416,250
AT&T Corp.-Liberty Media Group CL A* 11,500 422,625
CNET Inc* 15,000 864,375
Data Broadcasting Corp* 9,000 95,062
EchoStar Communications Corp* 6,000 920,625
Healtheon Corp* 9,000 693,000
----------
3,411,937
Computers & Computer Peripherals: 5.03%
Compaq Computer Corp 12,000 284,250
Creative Technology Ltd 22,000 295,625
Dell Computer Corp* 4,000 148,000
Sun Microsystems Inc* 12,000 826,500
Tech Squared Inc* 15,000 66,562
----------
1,620,937
Electronic Commerce: 10.44%
ProxyMed Inc* 16,500 262,969
BroadVision Inc* 8,000 590,000
DoubleClick Inc* 9,000 825,750
Edify Corp* 4,500 60,187
Harbinger Corp* 16,500 206,250
NetGravity Inc* 10,000 227,500
Open Market Inc* 11,000 156,062
Verisign Inc* 12,000 1,035,000
----------
3,363,718
See accompanying notes to financial statements.
-2-
<PAGE>
WWW TRUST
WWW INTERNET FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JUNE 30, 1999
SHARES VALUE
------ -----
Enterprise Software: 7.86%
Compuware Corp* 12,000 $ 381,750
HNC Software Inc* 12,000 369,750
J.D. Edwards & Co* 15,000 277,500
Microsoft Corp* 10,000 901,875
Novell Inc* 3,000 79,500
Peoplesoft Inc* 22,000 379,500
VERITAS Software Corp* 1,500 142,406
----------
2,532,281
Financial Services: 10.24%
Checkfree Holdings Corp* 4,000 110,250
First Sierra Financial Inc* 5,000 125,000
London Pacific Group Ltd, ADR 18,000 414,000
Security First Technologies Corp* 26,000 1,173,250
Wit Capital Group Inc* 20,000 680,000
E*Trade Group Inc* 20,000 798,750
----------
3,301,250
Firewall & Internet Security: 4.87%
Check Point Software Technologies Ltd* 10,000 536,250
Entrust Technologies Inc* 12,000 399,000
ISS Group Inc* 15,000 566,250
Pilot Network Services Inc* 7,000 68,687
----------
1,570,187
Internet Tools: 7.73%
Critical Path Inc* 6,200 342,938
Inktomi Corp* 6,000 783,375
INSO Corp* 6,000 32,250
Spyglass Inc* 10,000 201,250
Symantec Corp* 10,000 255,000
Vignette Corp* 10,000 750,000
Prosoft Training.com* 50,800 127,200
----------
2,492,013
See accompanying notes to financial statements.
-3-
<PAGE>
WWW TRUST
WWW INTERNET FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JUNE 30, 1999
SHARES VALUE
------ -----
Internet Venture Capital: 3.80%
CMGI Inc* 8,000 $ 912,500
Rare Medium Group Inc* 25,000 310,938
----------
1,223,438
ISP/Hosting Service: 10.23%
America Online Inc* 3,000 331,500
Earthlink Network Inc* 5,000 307,188
Exodus Communications Inc* 9,000 1,079,438
InfoSpace.com Inc* 10,000 470,000
PSINet Inc* 5,000 218,750
TownPagesNet.com, ADR* 50,000 350,000
Verio Inc* 4,000 278,000
VerticalNet Inc* 2,500 262,188
----------
3,297,064
Multimedia: 5.20%
CBS Corp 7,500 325,781
Time Warner Inc 8,000 588,000
USA Networks Inc* 19,000 762,375
----------
1,676,156
On-Line Retailing: 3.36%
800 Travel Systems Inc* 17,000 68,000
Audio Book Club Inc* 11,000 143,000
Egghead.com Inc* 5,000 55,937
Launch Media Inc* 15,000 268,125
Preview Travel Inc* 25,000 548,438
----------
1,083,500
Semiconductors & Equipment Makers: 4.48%
Broadcom Corp CL A* 2,200 318,038
Dallas Semiconductor Corp 10,000 505,000
Intel Corp 8,000 476,000
Texas Instruments Inc 1,000 145,000
----------
1,444,038
See accompanying notes to financial statements.
-4-
<PAGE>
WWW TRUST
WWW INTERNET FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JUNE 30, 1999
SHARES/FACE
AMOUNT VALUE
------ -----
Telecom Services: 5.95%
IXC Communications Inc* 5,000 $ 196,563
Inet Technologies Inc* 10,000 240,000
Intermedia Communications Inc* 9,000 270,000
Qwest Communications International Inc* 14,000 462,875
Teligent Inc CL A* 2,000 119,625
USA Talks.com Inc*(1) 320,000 360,000
Winstar Communications Inc* 5,500 268,124
----------
1,917,187
Telecommunication Equipment: 3.12%
CIENA Corp* 15,000 452,813
Com21 Inc* 18,000 307,125
General Instrument Corp* 2,000 85,000
Lucent Technologies Inc 2,400 161,850
----------
1,006,788
Web Development: 2.89%
Scient Corp* 6,500 309,156
Silknet Software Inc* 11,500 465,750
USWEB Corp* 7,000 155,312
----------
930,218
----------
Total Common Stock (Cost: $24,926,722) 30,870,712
CONVERTIBLE NOTE: 0.48%
Prosoft Training.com Convertible Note, 13.00%, $100,000 156,250
11/30/2003 (Cost $ 100,000)
MONEY MARKET FUND: 3.73%
Firstar Bank Treasury Fund $1,201,654 1,201,654
(Cost $ 1,201,654) ----------
Total Investments In Securities 100%
(Cost $ 26,228,376) $32,228,616
===========
<FN>
*Non-dividend paying securities.
(1)Restricted securities.
</FN>
</TABLE>
See accompanying notes to financial statements.
-5-
<PAGE>
WWW TRUST
WWW INTERNET FUND
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Dividends $ 4,519
Interest 66,283
-----------
Total Investment Income 70,802
EXPENSES
Investment advisory fee 174,200
Administration fee 65,000
Custody fee 21,539
Professional fees 16,747
Distribution fee 60,722
Printing 42,558
Registration fees 19,033
Trustee fee 8,000
Amortization of organization expenses 11,262
Fulfillment expense 21,944
Other 5,581
-----------
Total expenses 446,586
Less: Expense reimbursement (142,977)
-----------
Net expenses 303,609
-----------
NET INVESTMENT LOSS (232,807)
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS
Net realized gain from investment transactions 29,950
Net change in unrealized appreciation of investments 5,941,215
-----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 5,971,165
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,738,358
===========
</TABLE>
See accompanying notes to financial statements.
-6-
<PAGE>
WWW TRUST
WWW INTERNET FUND
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
---- ----
FROM OPERATIONS:
<S> <C> <C>
Net investment loss $ (232,807) $ (46,174)
Net realized gain from investment transactions 29,950 224,862
Net change in unrealized appreciation of investments 5,941,215 191,091
------------ ------------
Net increase in net assets from operations 5,738,358 369,779
DISTRIBUTIONS TO SHAREHOLDERS:
From net capital gains on investments (112,653) (306,145)
CAPITAL SHARE TRANSACTIONS:
Net increase from capital share transactions 25,064,257 633,329
------------ ------------
NET INCREASE IN NET ASSETS 30,689,962 696,963
NET ASSETS
Beginning of year 2,628,325 1,931,362
------------ ------------
End of year $ 33,318,287 $ 2,628,325
============ ============
</TABLE>
See accompanying notes to financial statements.
-7-
<PAGE>
WWW TRUST
WWW INTERNET FUND
FINANCIAL HIGHLIGHTS
(For a Fund share outstanding throughout
the years ended June 30, 1999 and 1998
and for the period from inception
(August 1, 1996) through June 30, 1997)
<TABLE>
<CAPTION>
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.95 $ 10.99 $ 10.00
Income from investment operations
Net investment loss (0.37) (0.21) (0.16)
Net realized and unrealized gain on investments 12.39 1.70 1.36
-------- --------- ---------
Total from investment operations 12.02 1.49 1.20
-------- --------- ---------
Less distributions from realized gains from
security transactions (0.33) (1.53) (0.21)
-------- --------- ---------
Net asset value, end of period $ 22.64 $ 10.95 $ 10.99
======== ========= =========
Total return 112.01% 15.96% 13.08%
======== ========= =========
Ratios/supplemental data
Net assets end of period (in thousands) $ 33,318 $ 2,628 $ 1,472
Ratio of expenses to average net assets before
expense reimbursement 3.65% 5.10% 7.23%*
Ratio of expenses to average net assets after
expense reimbursement 2.50% 2.50% 2.50%*
Ratio of net investment (loss) to average net
assets (3.07%) (4.47%) (1.62%)*
Ratio of net investment (loss) to average net
assets net of reimbursement (1.90%) (1.89%) (0.62%)*
Portfolio turnover rate 48.03% 70.52% 109.52%
<FN>
* Annualized
</FN>
</TABLE>
See accompanying notes to financial statements.
-8-
<PAGE>
WWW TRUST
WWW INTERNET FUND
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
The WWW Trust (comprising the 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 (1940 Act), 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.
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 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.
-9-
<PAGE>
Organization expenses - During its organization and initial registration
with the Securities 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. For the year ended June 30, 1999, $11,262
was amortized.
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.
2. 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 (the "Plan") and any extraordinary
expenses.
-10-
<PAGE>
2. Investment advisory agreement (continued)
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 under the
Plan, 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 Manager under the Management Agreement for such fiscal year. For the year
ended June 30, 1999, 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.
3. 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 that may be received by them from the
Manager under the Plan. For the year ended June 30, 1999, the amount paid or
accrued for such expenses was $60,722.
4. Capital share transactions
As of June 30, 1999 there was an unlimited number of $.001 par value
shares of capital shares authorized for the Fund. Capital share transactions for
1999 and 1998 were as follows:
<TABLE>
<CAPTION>
1999 1998
---- ----
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares sold 1,920,436 $ 38,668,211 132,448 $ 1,490,785
Shares issued by
reinvestment of dividends 7,579 98,532 32,578 303,629
Shares redeemed
(net of redemption fees) (696,500) (13,702,486) (100,817) (1,161,085)
--------- ------------ -------- ------------
Net increase 1,231,515 $ 25,064,257 64,209 $ 633,329
========= ============ ======== ============
</TABLE>
-11-
<PAGE>
5. Investments
For the year ended June 30, 1999, purchases and sales of investment
securities, other than short-term investments, aggregated $27,706,685 and
$5,280,153 respectively. The gross unrealized appreciation for all securities
totaled $7,652,761 and the gross unrealized depreciation for all securities
totaled $1,652,520 for a net unrealized appreciation of $6,000,241. The
aggregate cost of securities for federal income tax purposes at June 30, 1999
was $26,228,376.
6. 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.
7. Distributions
For the year ended June 30, 1999, Distributions of $0.04 aggregating
$13,715 and $0.29 aggregating $98,938 were made from Short Term Capital Gains
and Long Term Capital Gains respectively.
8. Restricted securities
Investments in restricted securities and securities for which no quoted
market exists are valued at fair value as determined in good faith by the Board
of Trustees.
The investment in 320,000 shares of USA Talks.com Inc. common stock, the
sale of which is restricted, has been valued by the Board of Trustees at $1.125
per share after considering certain pertinent factors, including the current
market price of this company's unrestricted common stock. The Fund's valuation
of its restricted shares of USA Talks.com Inc. is 75% of the current market
price of unrestricted common stock of this Company at June 30, 1999. It is
possible that this estimated value may differ significantly from the amount that
might ultimately be realized in the near term.
-12-
<PAGE>
INDEPENDENT AUDITORS REPORT
To the Shareholders and
Board of Trustees
WWW Trust
We have audited the accompanying statement of assets and liabilities of
the WWW Trust, an Ohio business trust, (comprising the WWW Internet Fund)
including the schedule of investments in securities as of June 30, 1999, the
related statement of operations for the year then ended, the statements of
changes in net assets and financial highlights for each of the two years in the
period 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
audits. The 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 financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1999, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the WWW Trust as of June 30, 1999, the results of its operations for
the year then ended, the changes in its net assets and financial highlights for
each of the two years in the period then ended in conformity with generally
accepted accounting principles.
BERGE & COMPANY LTD
CINCINNATI, OHIO
JULY 28, 1999
