<PAGE>
POLYNOUS GROWTH FUND
SEMI-ANNUAL REPORT
January 31, 1998
Polynous Capital Management, Inc., Investment Adviser
(800) 924-3863
<PAGE>
Dear Shareholder,
The Polynous Growth Fund's semi-annual period ending January 31, 1998 resulted
in Fund performance being very similar to the performance of comparable
indexes. The Fund's return of positive 4.43 percent (-0.27 percent with full
sales load) was almost exactly the same as the Russell 2000 small-cap index
which increased 4.42 percent and the S&P 400 mid-cap index which increased 4.48
percent. The Fund's performance was somewhat better than the overall market,
however, as the most widely accepted "market" index, the Standard & Poor's 500
index, increased 3.60 percent.
Although the Fund's and the market's overall returns during the period are not
terribly exciting, the market environment during the period was both much more
exciting and challenging. In late summer, economic problems surfaced in various
Asian countries such as Thailand, Korea, Malaysia, and Indonesia. These
countries had previously experienced very attractive growth rates of typically
between five and ten percent annually. Such growth had attracted a significant
amount of foreign investment capital both in the form of loans and equity
investments. One example of the excessive amounts of such investment capital is
that loan growth in these countries had been more than double the rate of
economic growth during the previous three years. The external capital had
produced "bubble" economies that resulted in substantially more investment in
factories, office buildings, and infrastructure than would have otherwise been
warranted by the natural economic growth of such countries.
As the problems in various Asian countries became more widely recognized, both
the stock markets and the currencies of such countries started to experience
significant declines. The U.S. stock market finally reacted during the month of
October when the S&P 500 dropped 3.3 percent and the Russell 2000 dropped 4.4
percent. Our more valuation sensitive and risk management oriented approach to
growth stock investing added some value as the Fund's decline in October of 1.7
percent was much less than the comparable indexes.
We also responded to the market volatility by buying quite a few good quality
companies that had experienced declines of 20 to 30 percent. Unfortunately, our
relative outperformance during October reversed in December as many of our new
purchases kept declining due to tax loss selling of other investors. Almost
without exception, however, our purchases during the periods mentioned have now
been very attractive stocks for the first two months of 1998.
While we are concerned by the recent economic events in Asia, such events have
also accentuated the strengths of the U.S. economy. Exports comprise only 12
percent of U.S. Gross Domestic Product (GDP) with the Pacific Rim, including
Japan, only accounting for four percent of our GDP. Even if our exports
declined 25 percent to the Pacific Rim countries (which would be an
unprecedented decline) our GDP would theoretically be affected by only one
percent. Nominal GDP growth currently is about four percent and so, while lower
growth would be less attractive than the current rate of growth in the U.S.,
our GDP growth would have to decline another three percent before the U.S.
would be threatened by a recession.
There are also some very positive benefits for U.S. consumers and the overall
U.S. economy from the recent Asian economic weakness. Consumer goods sourced
from Asian countries will now cost less due to the substantial declines in
various Asian currencies relative to the U.S. dollar. The deflationary effects
from declining Asian economic activity also minimize inflationary threats to
the U.S. economy. With less danger of our economy overheating, the environment
for interest rates and money supply growth can remain positive and provide
further support for continuing our current economic expansion.
<PAGE>
The U.S. stock market environment is also likely to be positive with low
interest rates and inflation rates along with positive money supply growth.
Current U.S. money supply growth of around nine percent would typically result
in increasing inflation but current U.S. inflation of under two percent is
among the lowest ever recorded. The Federal Reserve is also unlikely to raise
interest rates to restrain money supply growth given the current Asian
economic problems.
It is particularly notable that nominal GDP growth of around four percent is
five percentage points less than money supply growth. Money supply growth
above GDP growth will either be invested directly in productive assets or will
be invested indirectly in financial assets such as stocks and bonds. Most U.S.
companies are being very disciplined and conservative concerning expansions of
productive capacity, however, and so it appears that most of the excess
liquidity in the U.S. is being invested in our stock market. Although such
trends are not guaranteed to continue, while they stay in place our stock
market is likely to continue being a very attractive investing environment.
Our positioning in such an environment is to emphasize Consumer-oriented
sectors. At the end of January, Consumer Services, Consumer Durables, and
Consumer Non-Durables sectors comprised 26 percent, eight percent, and six
percent of the Fund, respectively. Within Consumer Services the main
industries of emphasis include Apparel Retailing (9.4 percent) and Jewelry
Retailing (6.1 percent). Both industries benefit from expanding consumer
incomes and lower product costs as each industry sources a significant amount
of its products from the Pacific Rim.
Other sectors with larger weightings are Business Services (11 percent) and
Health Care (10 percent). Business Services is an area with many interesting
growth companies as more businesses decide to outsource various parts of their
operations to external service companies. Health Care will likely continue to
be an emphasized sector due to the aging of the U.S. population and continual
innovations in supplying new medical products and services.
A sector of note with a small weighting is Technology, which comprises only
about five percent of the Fund. We are very positive about the benefits of
technology for both businesses and consumers but we believe that excessive
investment capital has been attracted to technology companies. Many technology
companies themselves have far more cash than is required for their ongoing
operations, which will then typically result in both overexpansion and
aggressive competitive behavior. Most publicly traded technology companies,
given investor interest in technology stocks, are also selling at valuations
that vastly exceed their sustainable growth rates. We look forward to becoming
more heavily invested in technology stocks when valuations are more attractive
and when fundamentals appear more sustainable.
Yours truly,
/s/ Kevin L. Wenck
President
Past performance is not indicative of future results. Share price and returns
will fluctuate and when redeemed, shares may be worth more or less than their
original investment. The one year return for the no load shares of the Fund as
of 12/31/97 was 18.51% and the since inception return was 25.75%. The one year
return for the load shares was 13.18% and since inception return of 20.09%.
Inception date of the Fund is 08/12/96. There are special risks associated
with investing in small-cap stocks which may be subject to a higher degree of
market risk than large-cap stocks due to market illiquidity. The Polynous
Growth Fund is distributed by FPS Broker Services, Inc. and must be preceded
by or accompanied by a prospectus.
--DFU 03/98
<PAGE>
POLYNOUS GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) JANUARY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<C> <S> <C>
COMMON STOCKS - 85.92%
BUSINESS SERVICES - 11.19%
44,400 International Total Services, Inc.*................... $ 860,250
21,700 Execustay Corp.* ..................................... 217,000
36,700 Global DirectMail Corp.* ............................. 738,587
23,800 Micro Warehouse, Inc.* ............................... 275,188
116,800 RMH Teleservices, Inc.* .............................. 554,800
14,100 SOS Staffing Services, Inc.* ......................... 250,275
-----------
2,896,100
-----------
CAPITAL GOODS - 7.20%
19,000 American Buildings Co.* .............................. 520,125
21,000 Essex International, Inc.* ........................... 693,000
6,500 Kaydon Corp. ......................................... 225,469
12,000 NCI Building Systems, Inc.* .......................... 423,750
-----------
1,862,344
-----------
CONSUMER DURABLES - 7.85%
29,200 Crossmann Communities, Inc.* ......................... 686,200
83,400 Meade Instruments Corp.* ............................. 766,237
54,500 Meadowcraft, Inc.* ................................... 579,063
-----------
2,031,500
-----------
CONSUMER NON-DURABLES - 5.99%
79,300 Lifetime Hoan Corp.* ................................. 783,088
49,000 Q.E.P. Company, Inc.* ................................ 385,875
21,200 Quaker Fabric Corp.* ................................. 381,600
-----------
1,550,563
-----------
CONSUMER SERVICES - 25.81%
33,700 Applebee's International, Inc. ....................... 570,794
94,600 Children's Place Retail Stores, Inc.* ................ 691,763
42,900 Claire's Stores, Inc. ................................ 761,475
59,400 Finish Line, Inc., Class A* .......................... 757,350
27,800 Finlay Enterprises, Inc.* ............................ 646,350
30,100 Friedman's Inc., Class A* ............................ 423,281
30,000 Marks Bros. Jewelers, Inc.* .......................... 521,250
25,100 Rio Hotel and Casino, Inc.* .......................... 646,325
54,000 Sports Authority, Inc.* .............................. 668,250
23,900 Stein Mart, Inc.* .................................... 601,981
78,200 Track 'n Trail* ...................................... 391,000
-----------
6,679,819
-----------
</TABLE>
<PAGE>
POLYNOUS GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) JANUARY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<C> <S> <C>
ENERGY - 1.95%
27,000 Belco Oil & Gas Corp.* ............................. $ 504,562
-----------
FINANCE - 6.71%
29,500 Agree Realty Corp. ................................. 649,000
19,000 Frontier Insurance Group, Inc. ..................... 453,625
34,200 RFS Hotel Investors, Inc. .......................... 632,700
-----------
1,735,325
-----------
HEALTH CARE - 9.96%
36,100 ADAC Laboratories .................................. 762,612
84,100 Lumisys, Inc.* ..................................... 420,500
24,600 Lunar Corp.* ....................................... 541,200
22,500 Pharmaceutical Product Development, Inc.* .......... 376,875
46,100 Prime Medical Services, Inc.* ...................... 475,406
-----------
2,576,593
-----------
TECHNOLOGY - 5.06%
31,100 DataWorks Corp.* ................................... 723,075
40,300 Princeton Video Image, Inc.* ....................... 322,400
13,200 VLSI Technology, Inc.* ............................. 263,175
-----------
1,308,650
-----------
TRANSPORTATION - 4.20%
11,400 ASA Holdings, Inc. ................................. 393,300
55,500 Motor Cargo Industries, Inc.* ...................... 693,750
-----------
1,087,050
-----------
TOTAL COMMON STOCKS (COST $21,227,154) ............. 22,232,506
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
SHORT-TERM INVESTMENTS - 9.98%
$2,582,372 The Bank of New York Cash Reserve, 4.60% ........... 2,582,372
-----------
TOTAL SHORT TERM INVESTMENTS (COST $2,582,372) ..... 2,582,372
-----------
TOTAL INVESTMENTS (COST $23,809,526**) - 95.90% .... 24,814,878
OTHER ASSETS, LESS OTHER LIABILITIES - 4.10% ....... 1,060,266
-----------
NET ASSETS - 100.00% ............................... $25,875,144
===========
*Non-income producing security
**Cost for Federal income tax purposes is $23,809,526 and net unrealized
appreciation consists of:
Gross unrealized appreciation....................... $ 2,584,831
Gross unrealized depreciation....................... (1,579,479)
-----------
Net unrealized appreciation......................... $ 1,005,352
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
POLYNOUS GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) JANUARY 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value (Cost $23,809,526) (Note 1).......... $24,814,878
Receivables:
Investment securities sold...................................... 1,061,663
Capital stock sold.............................................. 50,577
Interest........................................................ 8,625
Deferred organization costs (Note 1)............................. 52,951
Other assets..................................................... 1,582
-----------
TOTAL ASSETS................................................... 25,990,276
-----------
LIABILITIES:
Payables:
Capital stock redeemed.......................................... 27,000
Due to Adviser.................................................. 15,217
Accrued expenses................................................ 61,976
Accrued distribution expense.................................... 10,939
-----------
TOTAL LIABILITIES.............................................. 115,132
-----------
NET ASSETS:
Applicable to 1,902,926 shares; unlimited number of shares of
beneficial interest authorized with no par value............... $25,875,144
===========
Net asset value and redemption price ($25,875,144 / 1,902,926
shares)........................................................ $ 13.60
===========
Offering price per share ($13.60 / 0.9550)...................... $ 14.24
===========
NET ASSETS CONSIST OF:
Paid-in capital................................................. $24,299,137
Accumulated net investment loss................................. (118,896)
Accumulated net realized gain on investments.................... 689,551
Net unrealized appreciation on investments...................... 1,005,352
-----------
NET ASSETS..................................................... $25,875,144
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
POLYNOUS GROWTH FUND
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED
JANUARY 31, 1998
(UNAUDITED)
INVESTMENT INCOME: ------------------
<S> <C>
Dividends.................................................. $ 66,595
Interest................................................... 69,745
-----------
TOTAL INCOME............................................. 136,340
-----------
EXPENSES:
Investment advisory fees (Note 3).......................... 127,588
Distribution expense (Note 3).............................. 31,897
Administration fees........................................ 30,714
Professional fees.......................................... 18,983
Transfer agent fees........................................ 18,908
Registration fees.......................................... 15,797
Accounting fees............................................ 13,039
Custodian fees............................................. 7,881
Amortization of organization costs (Note 1)................ 7,555
Insurance expense.......................................... 7,194
Printing expense........................................... 3,025
Trustees' fees............................................. 2,418
Miscellaneous fees......................................... 616
-----------
TOTAL EXPENSES........................................... 285,615
Expenses waived by Adviser (Note 3)...................... (30,440)
-----------
NET EXPENSES............................................. 255,175
-----------
NET INVESTMENT LOSS......................................... (118,835)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments........................... 2,435,997
Net realized gain on option contracts written.............. 5,946
Net realized gain on in-kind redemption.................... 81,276
Net change in unrealized appreciation (depreciation) on
investments............................................... (1,508,222)
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.......... 1,014,997
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $ 896,162
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
POLYNOUS GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE PERIOD
ENDED AUGUST 12, 1996*
JANUARY 31, 1998 THROUGH
(UNAUDITED) JULY 31, 1997
OPERATIONS: ------------------ ----------------
<S> <C> <C>
Net investment income (loss).............. $ (118,835) $ 1,505,354
Net realized gain (loss) on investments... 2,435,997 (942,391)
Net realized gain on option contracts
written.................................. 5,946 0
Net realized gain on in-kind redemption... 81,276 0
Net change in unrealized appreciation
(depreciation) on investments............ (1,508,222) 2,462,460
----------- -----------
Net increase in net assets resulting from
operations............................... 896,162 3,025,423
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................... (1,505,415) 0
Net capital gains......................... (810,949) (29,214)
----------- -----------
Total distributions....................... (2,316,364) (29,214)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold................. 5,889,682 24,708,409
Reinvestment of dividends................. 2,048,551 26,628
Cost of shares redeemed................... (3,151,942) (5,406,152)
----------- -----------
Increase in net assets derived from
capital share transactions (a)........... 4,786,291 19,328,885
----------- -----------
TOTAL INCREASE IN NET ASSETS............ 3,366,089 22,325,094
----------- -----------
NET ASSETS:
Beginning of period....................... 22,509,055 183,961
----------- -----------
End of period............................. $25,875,144 $22,509,055
=========== ===========
(a)Transactions in capital stock were:
Shares sold.............................. 397,089 1,977,549
Shares issued through reinvestment of
dividends............................... 153,680 2,107
Shares redeemed.......................... (215,915) (426,914)
----------- -----------
Increase in shares outstanding............. 334,854 1,552,742
=========== ===========
</TABLE>
*Commencement of investment operations.
See accompanying notes to financial statements.
<PAGE>
POLYNOUS GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The table below sets forth financial data for one share of capital stock
outstanding throughout each period presented.
<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE PERIOD
ENDED AUGUST 12, 1996*
JANUARY 31, 1998 THROUGH
(UNAUDITED) JULY 31, 1997
------------------ ----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD...... $ 14.35 $ 12.00
-------- -------
Income from investment operations:
Net investment income (loss)............. (0.14) 0.96
Net realized and unrealized gain on
investments............................. 0.75 1.41
-------- -------
Total from investment operations........ 0.61 2.37
-------- -------
Less distributions from:
Net investment income.................... (0.88) 0.00
Net capital gains........................ (0.48) (0.02)
-------- -------
Total distributions..................... (1.36) (0.02)
-------- -------
NET ASSET VALUE, END OF PERIOD............ $ 13.60 $ 14.35
======== =======
TOTAL RETURN+............................. 4.43% /2/ 20.53% /1/
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000s)...... $ 25,875 $22,509
Ratio of expenses to average net assets:
Before expense reimbursement............ 2.24% /1/ 2.73% /1/
After expense reimbursement............. 2.00% /1/ 2.00% /1/
Ratio of net investment income to average
net assets:
Before expense reimbursement............ (1.17%) /1/ 9.44% /1/
After expense reimbursement............. (0.93%) /1/ 10.17% /1/
Portfolio turnover rate.................. 92.36% /2/ 925.07% /2/
Average commission rate paid............. $ 0.0615 $0.0308
</TABLE>
*Commencement of investment operations.
+Total return calculation does not reflect sales load.
/1/Annualized.
/2/Not Annualized.
See accompanying notes to financial statements.
<PAGE>
POLYNOUS GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) JANUARY 31, 1998
- -------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Polynous Trust (the "Trust" ) is organized as a Delaware business trust
pursuant to a Trust Agreement dated April 10, 1996. The Trust is registered
under the Investment Company Act of 1940, as amended, as an open-end,
diversified management investment company. The Trust is organized to offer
separate series of shares and is currently offering a single series of shares
called Polynous Growth Fund (the "Fund"). The Fund is organized to offer
separate classes of shares and currently offers one class (Class A). The
following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
A. SECURITY VALUATION. Investments in securities traded on a national
securities exchange are valued at the last reported sales price. Unlisted
securities, or listed securities in which there were no sales, are valued at
the mean of the closing bid and ask prices. When market quotations are not
readily available, securities and other assets are valued at fair value as
determined in good faith by the Board of Trustees. Short-term obligations
having a maturity of 60 days or less are valued at amortized cost, which the
Board of Trustees believes represents fair value.
B. OPTIONS. Premiums received by the Fund upon writing put or call options are
recorded as an asset with a corresponding liability which is subsequently
adjusted to the current market value of the option. When an option expires, is
exercised, or is closed, the Fund realizes a gain or loss, and the liability
is eliminated. The risk in writing a call option is that the Fund may forego
the opportunity of profit if the market value of the underlying security
increases and the option is exercised, although any potential loss would be
reduced by the amount of option premium received.
Transactions in options contracts written for the six months ended January 31,
1998 were as follows:
<TABLE>
<CAPTION>
CONTRACTS PREMIUM
--------- --------
<S> <C> <C>
Outstanding at July 31, 1997................................ 385 (110,654)
Options purchased........................................... 0 0
Options terminated in closing transactions (Net)............ (385) 110,654
Options expired............................................. 0 0
---- --------
Outstanding at January 31, 1998............................. 0 0
==== ========
</TABLE>
C. INVESTMENT INCOME AND SECURITIES TRANSACTIONS. Security transactions are
accounted for on the date the securities are purchased or sold (trade date).
Cost is determined and gains and losses are based on the identified cost basis
for both financial statement and federal income tax purposes. Dividend income
is reported on the ex-dividend date. Interest income and expenses are accrued
daily.
D. ORGANIZATION COSTS. Organization costs are being amortized on a straight
line basis over five years from commencement of operations.
E. FEDERAL INCOME TAXES. It is the policy of the Fund to comply with all
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no Federal income tax provision is required.
F. DISTRIBUTIONS TO SHAREHOLDERS. The Fund will distribute substantially all
of its net investment income in December, and capital gains, if any, annually.
Distributions to shareholders are recorded on the ex- dividend date. Income
and capital gain distributions are determined in accordance with Federal
income tax regulations which may differ from generally accepted accounting
principles.
<PAGE>
POLYNOUS GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED JANUARY 31, 1998
- -------------------------------------------------------------------------------
G. USE OF ESTIMATES. In preparing financial statements in conformity with
generally accepted accounting principles, management makes estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements, as well as the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from
those estimates.
NOTE 2 - PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, other than short-term investments, totaled
$20,808,270 and $21,739,626, respectively, for the six months ended January
31, 1998.
NOTE 3 - INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Polynous Capital Management, Inc. (the "Adviser"), a registered investment
adviser, provides the Fund with investment management services. For providing
investment advisory services, the Fund pays the Adviser a monthly fee which is
calculated by applying the following annual rates: 1.00% of the first $100
million of average net assets, 0.75% of the next $150 million, 0.60% of the
next $250 million, 0.50% of the next $500 million, and 0.40% of all amounts of
average net assets above $1 billion. The Adviser has voluntarily agreed to
waive its fees to the extent total annualized fund operating expenses,
inclusive of distribution expenses, exceed 2.00% of the Fund's average daily
net assets. For the six months ended January 31, 1998, advisory fees of
$127,588 were paid to the Adviser and the Adviser waived fees of $30,440,
resulting of a net payment to the Adviser of $97,148. The Fund has adopted a
Distribution Plan (the "Plan"), pursuant to Rule 12b-1 under the Investment
Company Act of 1940, as amended, which permits the Fund to pay certain
expenses associated with the distribution of its shares. The Plan provides
that the Fund will reimburse FPS Broker Services, Inc. (the "Distributor"),
the Fund's sole underwriter and distributor, for actual distribution and
shareholder servicing expenses incurred by the Distributor not exceeding, on
an annual basis, 0.25% of the Fund's average daily net assets. For the six
months ended January 31, 1998, the Fund reimbursed the Distributor $31,897 for
distribution costs incurred. Certain officers and trustees of the Fund are
affiliated persons of the Adviser. All officers serve without direct
compensation from the Fund.
<PAGE>
BOARD OF TRUSTEES OFFICERS
Kevin L. Wenck Kevin L. Wenck
Richard H. Kimball Erin Fry Sinclair
Ronald H. Kase
INVESTMENT ADVISER SHAREHOLDER SERVICES
Polynous Capital Management, Inc. FPS Services, Inc.
345 California Street, Suite 1220 3200 Horizon Drive
San Francisco, CA 94104 King of Prussia, PA 19406
(800) 924-3863 (800) 528-8069
(415) 956-3384 (610) 239-4600
UNDERWRITER LEGAL COUNSEL
FPS Broker Services, Inc. Paul, Hastings, Janofsky & Walker
3200 Horizon Drive LLP
King of Prussia, PA 19406 345 California Street
San Francisco, CA 94104
CUSTODIAN
INDEPENDENT AUDITORS
The Bank of New York
48 Wall Street Deloitte & Touche LLP
New York, NY 10286 50 Fremont Street
San Francisco, CA 94105
For Additional Information about Polynous Growth Fund call:
(800) 924-3863
(415) 956-3384
or access our internet web site at www.polynous.com
THIS REPORT IS SUBMITTED FOR GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUND. IT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE
FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS WHICH INCLUDES
DETAILS REGARDING THE FUND'S OBJECTIVES, POLICIES, EXPENSES AND OTHER
INFORMATION.
