O SHAUGHNESSY FUNDS INC, N-30D, 1999-06-02

O SHAUGHNESSY FUNDS INC
N-30D, 1999-06-02

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[LOGO] O'SHAUGHNESSY
FUNDS INC.

BUILDING
NEW STANDARDS
FOR INVESTMENT
SUCCESS

CORNERSTONE GROWTH FUND
CORNERSTONE VALUE FUND

SEMI-ANNUAL REPORT
MARCH 31, 1999
<PAGE>
O'SHAUGHNESSY CORNERSTONE GROWTH FUND
O'SHAUGHNESSY CORNERSTONE VALUE FUND

May 11, 1999

Dear Fellow Shareholder:

Enclosed is the Semi-annual Report for the O'Shaughnessy Cornerstone Growth and
Cornerstone Value Funds. The Report contains financial statements for the Funds
during the six-month period ended March 31, 1999 and the Fund's portfolio on
that date. For the period of October 1, 1998 to March 31, 1999, our Cornerstone
Growth and Value Funds had a return of 14.42% and 13.58% respectively.

The Chinese have a saying (which is considered a curse): "May you live in
interesting times." After the upside down market of the last few years, I
understand WHY it's a curse. For the last year and a half, the market has been
very interesting indeed. Everything that has historically led to disastrous
returns in the stock market has been rewarded, while everything that has
historically led to superior returns has gone nowhere. We've seen a market where
wrong is right; where inexperienced plungers have prospered while seasoned
investors have suffered; where the higher the valuation, the higher the price
moved. In 1998, just a handful of large-cap growth stocks were responsible for
virtually all the S&P 500's rise. And so it continued during the first quarter
of 1999, with just a few large-cap growth stocks and the Anything.com stocks
continuing to soar while everything else was left behind.

The good news is that this narrow rally left a huge contingent of
extraordinarily cheap small and cyclical stocks positioned to jump should
investor sentiment shift. For while the rally in the nifty few large-cap growth
stocks left them dramatically overvalued, the lack of movement in everything
else led to valuations that looked better and better--in some instances, you
could buy stocks with forecasted double digit earnings growth for almost single
digit PE ratios. Bargains like these eventually become too compelling for
investors to ignore.

I believe that we are just now seeing a movement back into value and smaller
stocks. Our Cornerstone Value Fund, rich in undervalued cyclical stocks sporting
high dividend yields, jumped 13.69% in April 1999. That certainly seems like a
change in investor sentiment to me! Over the same period, the Cornerstone Growth
Fund rose 6.12% while the S&P 500 rose 3.87%.

Yet despite this strong short-term showing, we remain focused on the long-term.
The Cornerstone Value Fund's strong performance in April points to the futility
of trying to time the market or your investment style, because no one could have
predicted it. And it underscores why your focus should be not on what a fund
does over a month but what you can expect it to do over the time that you hold
it. That's where the real power of Strategy Indexing(R) has always been--and
always will be.
<PAGE>
2

O'SHAUGHNESSY CORNERSTONE GROWTH FUND
O'SHAUGHNESSY CORNERSTONE VALUE FUND

As always, I hope that together, we can reach our long-term goals by sticking
with our time-tested investment strategies.

Sincerely,

/s/ James P. O'Shaughnessy
- -------------------------------
James P. O'Shaughnessy

The S&P 500 Composite Stock Price Index is an unmanaged capitalization-weighted
index of 500 stocks designed to represent the broad domestic economy. Indexes do
no incur expenses and are not available for investment.

The Cornerstone Growth Fund's and Cornerstone Value Fund's annual average total
returns from inception on November 1, 1996 through March 31, 1999 were 10.32%
and 9.76%, respectively. The Cornerstone Growth Fund's and Cornerstone Value
Fund's one-year total returns through March 31, 1999 were (15.51)% and (3.21)%,
respectively.

Performance Figures of the Funds and indexes referenced represent past
performance and are not indicative of future performance of the Funds or the
indexes. Share value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original investment.

The Fund is distributed by First Fund Distributors, Inc., Phoenix, AZ. Member
NASD.
<PAGE>
3

O'SHAUGHNESSY CORNERSTONE GROWTH FUND

TOP TEN PORTFOLIO HOLDINGS AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Percent of Net Assets
- --------------------------------------------------------------------------------

1 ) Echostar Communications Corporation................ 3.59%

2 ) Optical Coating Laboratory, Inc.................... 3.58%

3 ) Best Buy Co., Inc.................................. 3.42%

4 ) Quicksilver, Inc................................... 2.95%

5 ) Calpine Corporation................................ 2.86%

6 ) Costco Companies, Inc.............................. 2.68%

7 ) Gateway 2000, Inc.................................. 2.67%

8 ) Express Scripts, Inc............................... 2.60%

9 ) Flextronics International Limited.................. 2.57%

10 ) Insituform Technologies, Inc....................... 2.56%

O'SHAUGHNESSY CORNERSTONE VALUE FUND

1 ) Telefonos de Mexico-ADR............................ 2.63%

2 ) British Steel PLC.................................. 2.49%

3 ) Anglo American Corporation of South Africa Ltd..... 2.45%

4 ) Fortune Brands, Inc................................ 2.44%

5 ) Imperial Petroleum, Inc............................ 2.35%

6 ) National Australia Bank Ltd........................ 2.34%

7 ) BankAmerica Corporation............................ 2.32%

8 ) Deere & Company.................................... 2.30%

9 ) Rio Tinto PLC-ADR.................................. 2.25%

10 ) BankBoston Corporation............................. 2.23%
<PAGE>
O'SHAUGHNESSY CORNERSTONE GROWTH FUND

PORTFOLIO OF INVESTMENTS AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 99.82% Market Value
- --------------------------------------------------------------------------------

ADVERTISING: 1.69%
192,900 E4L, Inc.*........................................ $ 1,627,594
-----------

AIRLINES: 1.50%
76,000 Amtran, Inc.*..................................... 1,444,000
-----------

APPAREL: 4.11%
67,300 Quicksilver, Inc.................................. 2,843,425
55,000 Tropical Sportswear Int'l Corporation............. 1,120,625
-----------
3,964,050
-----------
COMPUTERS: 7.77%
48,800 Apple Computer, Inc............................... 1,753,750
20,700 CDW Computer Centers, Inc.*....................... 1,428,300
31,400 Computer Sciences Corporation..................... 1,732,888
37,600 Gateway 2000, Inc.*............................... 2,577,950
-----------
7,492,888
-----------
COSMETICS / PERSONAL CARE: 2.36%
24,100 The Estee Lauder Companies Inc.................... 2,277,450
-----------

DISTRIBUTION / WHOLESALE: 1.56%
75,300 Miami Computer Supply Corporation................. 1,501,294
-----------

ELECTRIC: 2.86%
75,800 Calpine Corporation*.............................. 2,761,963
-----------

ELECTRONICS: 6.15%
48,700 Flextronics International Limited................. 2,483,700
71,900 Optical Coating Laboratory, Inc................... 3,451,200
-----------
5,934,900
-----------
ENGINEERING AND CONSTRUCTION: 5.82%
54,400 Granite Construction Incorporated*................ 1,271,600
141,300 Insituform Technologies, Inc.*.................... 2,472,750
47,500 Jacobs Engineering Group Inc.*.................... 1,873,281
-----------
5,617,631
-----------
FOOD: 3.64%
33,100 Safeway Inc.*..................................... 1,698,444
161,100 The Grand Union Company*.......................... 1,812,375
-----------
3,510,819
-----------

<PAGE>
5

O'SHAUGHNESSY CORNERSTONE GROWTH FUND

PORTFOLIO OF INVESTMENTS AT MARCH 31, 1999 (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------

HEALTH CARE: 1.85%
23,500 Wellpoint Healthcare Networks Inc................. $ 1,781,594
-----------

HOME BUILDERS: 1.88%
43,000 NVR, Inc.*........................................ 1,811,375
-----------

HOME FURNISHINGS: 2.07%
33,000 Maytag Corporation................................ 1,992,375
-----------

INSURANCE: 5.05%
34,500 LandAmerica Financial Group, Inc.................. 1,000,500
42,350 Reinsurance Group of America, Incorporated........ 1,802,522
33,200 Stewart Information Services Corporation.......... 1,114,275
60,200 The First American Financial Corporation*......... 951,913
-----------
4,869,209
-----------
MACHINERY - CONSTRUCTION AND MINING: 2.12%
66,300 Astec Industries, Inc.*........................... 2,047,013
-----------

MACHINERY - DIVERSIFIED: 2.02%
70,700 Specialty Equipment Companies, Inc.*.............. 1,953,088
-----------

MEDIA: 2.43%
27,900 Viacom Inc., Class B.............................. 2,341,856
-----------

MISCELLANEOUS MANUFACTURING: 1.47%
67,100 Myers Industries, Inc............................. 1,417,488
-----------

MOBILE HOME BUILDERS: 3.62%
75,100 Monaco Coach Corporation.......................... 1,731,994
125,900 Winnebago Industries, Inc......................... 1,762,600
-----------
3,494,594
-----------
PHARMACEUTICALS: 6.84%
-----------
58,200 Alphama Inc., Class A............................. 2,284,350
63,300 Bindley Western Industries, Inc................... 1,808,006
29,200 Express Scripts, Inc.*............................ 2,509,375
-----------
6,601,731
-----------
RESTAURANTS: 1.77%
98,200 Ruby Tuesday, Inc................................. 1,706,225
-----------
<PAGE>
6

O'SHAUGHNESSY CORNERSTONE GROWTH FUND

RETAIL: 20.29%
51,700 AnnTalor, Inc.*................................... $ 2,284,494
63,400 Best Buy Co., Inc.*............................... 3,296,800
71,400 Brinker International, Inc........................ 1,843,013
28,200 Costco Companies, Inc.*........................... 2,582,063
37,900 CVS Corporation................................... 1,800,250
141,900 Musicland Stores Corporation*..................... 1,250,494
115,300 Sonic Automotive, Inc.*........................... 1,787,150
71,300 The TJX Companies, Inc............................ 2,424,200
25,000 Walmart Stores, Inc............................... 2,304,688
-----------
19,573,150
-----------
SOFTWARE: 1.53%
429,600 Corel Corporation*................................ 1,476,750
-----------

TELECOMMUNICATION EQUIPMENT: 1.01%
51,600 Superior TeleCom Inc.............................. 973,950
-----------

TELECOMMUNICATIONS: 3.59%
42,400 Echostar Communications Corporation*.............. 3,460,900
-----------

TEXTILES: 1.53%
49,300 Mohawk Industries, Inc............................ 1,479,000
-----------

TOYS / GAMES / HOBBIES: 1.80%
397,800 The Topps Company, Inc............................ 1,740,375
-----------

TRANSPORTATION: 1.51%
43,900 Landstar System, Inc.*............................ 1,454,188
-----------

Total Common Stocks (cost $99,676,571)............ 96,307,447
-----------

Other Assets less Liabilities: 0.18%.............. 173,355
-----------
TOTAL NET ASSETS: 100.00% ........................ $96,480,802
===========

See Notes to Financial Statements.
<PAGE>
7

O'SHAUGHNESSY CORNERSTONE VALUE FUND

PORTFOLIO OF INVESTMENTS AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 99.50% Market Value
- --------------------------------------------------------------------------------

AUTO MANUFACTURERS: 1.93%
8,400 Ford Motor Company................................ $ 476,700
-----------

AUTO PARTS AND EQUIPMENT: 1.88%
12,200 Dana Corporation.................................. 463,600
-----------

BANKS: 16.54%
9,600 Banc One Corporation.............................. 528,600
8,100 BankAmerica Corporation........................... 572,063
12,700 BankBoston Corporation............................ 550,069
8,100 First Union Corporation........................... 432,844
15,300 KeyCorp........................................... 463,781
6,400 National Australia Bank Ltd.-ADR.................. 577,600
9,300 PNC Bank Corp..................................... 516,731
11,300 Summit Bancorp.................................... 440,700
-----------
4,082,388
-----------
BEVERAGES: 1.96%
10,600 Diageo PLC-ADR.................................... 484,950
-----------

CHEMICALS: 3.86%
10,700 Eastman Chemical Company.......................... 450,069
5,400 The Dow Chemical Company.......................... 503,213
-----------
953,281
-----------
DISTRIBUTION / WHOLESALE: 1.72%
14,700 Genuine Parts Company............................. 423,544
-----------

FINANCIAL SERVICES: 1.87%
10,500 Union Planters Corporation........................ 461,344
-----------

FOOD: 1.90%
6,200 General Mills, Inc................................ 468,488
-----------

FOREST PRODUCTS & PAPER: 3.73%
18,200 Westvaco Corporation.............................. 382,200
9,700 Weyerhaeuser Company.............................. 538,350
-----------
920,550
-----------
HOLDING COMPANIES - DIVERSIFIED: 1.56%
25,900 Tomkins PLC-ADR................................... 385,263
-----------
<PAGE>
8

O'SHAUGHNESSY CORNERSTONE VALUE FUND

HOUSEHOLD PRODUCTS / WARES: 2.44%
15,600 Fortune Brands, Inc............................... $ 603,525
-----------

INSURANCE: 3.65%
11,600 SAFECO Corporation................................ 469,075
13,900 The St. Paul Companies, Inc....................... 431,769
-----------
900,844
-----------
IRON / STEEL: 6.72%
23,200 Allegheny Teledyne Incorporated................... 439,350
17,400 Anglo American Corporation of South Africa
Ltd.-ADR.......................................... 604,650
30,400 British Steel PLC-ADR............................. 613,700
-----------
1,657,700
-----------
MACHINERY - DIVERSIFIED: 2.30%
14,700 Deere & Company................................... 567,788
-----------

MINING: 2.25%
10,100 Rio Tinto PLC-ADR................................. 555,500
-----------

MISCELLANEOUS MANUFACTURING: 5.25%
10,200 Cooper Industries, Inc............................ 434,775
6,500 Minnesota Mining and Manufacturing Company........ 459,875
14,400 Tenneco Inc....................................... 402,300
-----------
1,296,950
-----------
OIL & GAS PRODUCERS: 23.16%
7,200 Atlantic Richfield Company........................ 525,600
5,133 BP Amoco-ADR...................................... 518,112
5,900 Chevron Corporation............................... 521,781
30,300 Imperial Petroleum, Inc........................... 579,488
28,400 Occidental Petroleum Corporation.................. 511,200
11,300 Phillips Petroleum Company........................ 533,925
13,000 Shell Transport and Trading Company............... 528,125
13,700 Sunoco, Inc....................................... 494,056
9,200 Texaco, Inc....................................... 522,100
16,600 USX-Marathon Group................................ 456,500
16,700 YPF Sociedad Anonima-ADR.......................... 527,094
-----------
5,717,981
-----------

PACKAGING AND CONTAINERS: 1.84%
15,900 Crown Cork & Seal Company, Inc.................... 454,144
-----------

<PAGE>
9

O'SHAUGHNESSY CORNERSTONE VALUE FUND

RETAIL: 1.71%
10,400 J.C. Penny Company................................ $ 421,200
-----------

TELEPHONE: 8.40%
26,900 Compania Anonima Nacional Telefonos de
Venezuela-ADR..................................... 489,244
16,700 Telefonica de Argentina S.A.-ADR.................. 505,175
9,900 Telefonos de Mexico-ADR........................... 648,450
7,800 U S West, Inc..................................... 429,488
-----------
2,072,356
-----------

TOBACCO: 3.01%
9,300 Philip Morris Companies Inc....................... 327,244
16,600 RJR Nabisco Holdings Corp......................... 415,000
-----------
742,244
-----------
TRANSPORTATION: 1.83%
11,600 CSX Corporation................................... 451,675
-----------

Total Common Stocks (cost $24,649,672)............ 24,562,012
-----------

Other Assets less Liabilities: 0.50%.............. 123,366
-----------
TOTAL NET ASSETS: 100.0% ......................... $24,685,378
===========

See Notes to Financial Statements.
<PAGE>
10

O'SHAUGHNESSY CORNERSTONE GROWTH FUND
O'SHAUGHNESSY CORNERSTONE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES AT MARCH 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
CORNERSTONE CORNERSTONE
GROWTH FUND VALUE FUND
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities, at value (identified cost
$99,676,571 and $24,649,672, respectively) ............... $ 96,307,447 $ 24,562,012
Receivables:
Portfolio securities sold ................................ 129,427 147,175
Fund shares sold ......................................... 483,917 22,744
Dividends and interest ................................... 25,888 92,742
Other .................................................... 8,202 5,005
Deferred organization costs ................................ 13,057 13,057
Prepaid expenses and other ................................. 42,676 12,652
------------- ------------
Total assets .......................................... 97,010,614 24,855,387
------------- ------------

LIABILITIES
Payables:
Fund shares repurchased .................................. 50,346 8
Funds advanced by custodian .............................. 390,260 139,599
Advisory fee ............................................. 62,793 15,351
Administration fee ....................................... 8,418 3,397
Accrued expenses ........................................... 17,995 11,854
------------- ------------
Total liabilities ..................................... 529,812 170,009
------------- ------------

NET ASSETS .................................................. $ 96,480,802 $ 24,685,378
============= ============

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE
[$96,480,802/8,809,707 and $24,685,378/2,138,501
shares outstanding, respectively; 25,000,000,000
shares (par value $.0001) authorized] .................... $ 10.95 $ 11.54
============= ============

SOURCE OF NET ASSETS
Paid-in capital ............................................ $ 111,208,563 $ 23,803,126
(Accumulated) Undistributed net investment (loss)
income ................................................... (369,020) 145,582
(Accumulated) Undistributed net realized (loss)
gain on investment transactions .......................... (10,989,617) 824,330
Net unrealized depreciation of investments ................. (3,369,124) (87,660)
------------- ------------
Net assets ............................................ $ 96,480,802 $ 24,685,378
============= ============
</TABLE>

See Notes to Financial Statements.
<PAGE>
11

O'SHAUGHNESSY CORNERSTONE GROWTH FUND
O'SHAUGHNESSY CORNERSTONE VALUE FUND

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
CORNERSTONE CORNERSTONE
GROWTH FUND VALUE FUND
- --------------------------------------------------------------------------------

INVESTMENT INCOME
Income:
Dividends (net of foreign witholding tax of
$0 and $11,338, respectively) .............. $ 109,332 $ 428,907
Interest ..................................... 10,149 2,080
Securities lending ........................... 93,646 41,338
------------ ----------
Total income ............................ 213,127 472,325
------------ ----------
Expenses:
Advisory fees ................................ 371,812 88,326
Administration fees (Note 3) ................. 49,039 16,998
Custodian and accounting fees ................ 45,792 21,773
Transfer agent fees .......................... 41,307 13,742
Registration fees ............................ 30,846 14,844
Professional fees ............................ 18,181 5,903
Reports to shareholders ...................... 10,969 4,987
Other ........................................ 8,000 2,983
Directors' fees .............................. 3,689 3,689
Amortization of deferred organization costs .. 2,512 2,512
------------ ----------
Total expenses .......................... 582,147 175,757
------------ ----------
NET INVESTMENT (LOSS) INCOME .......... (369,020) 296,568
------------ ----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized (loss) gain from security
transactions ............................... (1,999,159) 1,273,163
Net change in unrealized appreciation of
investments ................................ 14,399,083 1,367,077
------------ ----------
Net realized and unrealized gain on
investments ........................... 12,399,924 2,640,240
------------ ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................... $ 12,030,904 $2,936,808
============ ==========

See Notes to Financial Statements.
<PAGE>
12

O'SHAUGHNESSY CORNERSTONE GROWTH FUND
O'SHAUGHNESSY CORNERSTONE VALUE FUND

<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
CORNERSTONE GROWTH FUND CORNERSTONE VALUE FUND
-------------------------------- -------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
March 31, 1999# Sept. 30, 1998 March 31, 1999# Sept. 30, 1998
--------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment (loss) income ................ $ (369,020) $ (665,794) $ 296,568 $ 437,383
Net realized (loss) gain from security
transactions .............................. (1,999,159) (1,821,292) 1,273,163 561,340
Net change in unrealized depreciation
on investments ............................ 14,399,083 (27,903,738) 1,367,077 (2,626,376)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............. 12,030,904 (30,390,824) 2,936,808 (1,627,653)
------------ ------------ ------------ ------------

DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ....................... -- -- (511,737) (231,740)
Net realized gains from security transactions -- (7,364,392) (1,009,259) (2,470)
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS ..................... -- (7,364,392) (1,520,996) (234,210)
------------ ------------ ------------ ------------

CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from
capital shares transactions (a) ........... 4,071,249 (26,875,315) 1,343,173 10,318,880
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . 16,102,153 (10,879,901) 2,758,985 8,457,017

NET ASSETS
Beginning of period ......................... 80,378,649 91,258,550 21,926,393 13,469,376
------------ ------------ ------------ ------------
END OF PERIOD (including undistributed
net investment (loss) income of ($369,020),
$0, $146,582, and $360,751, respectively) . $ 98,480,802 $ 80,378,649 $ 24,685,378 $ 21,926,393
============ ============ ============ ============

(a) A summary of capital shares transactions is as follows:

Six Months Ended Year Ended
March 31, 1999# September 30, 1998
--------------------------- ------------------------------
CORNERSTONE GROWTH FUND Shares Value Shares Value
---------- ------------ ---------- ------------
Shares sold .................................. 4,213,135 $ 45,256,173 9,244,626 $ 116,802,209
Shares issued on reinvestment of distributions -- -- 631,833 7,164,991
Shares redeemed .............................. (3,802,385) (41,184,924) (7,444,063) (97,091,885)
---------- ------------ ---------- ------------
Net increase ................................. 410,750 $ 4,071,249 2,432,396 $ 26,875,315
========== ============ ========== =============

CORNERSTONE VALUE FUND
Shares sold .................................. 667,797 $ 7,674,718 1,691,812 $ 20,010,395
Shares issued on reinvestment of distributions 124,352 1,412,633 19,959 226,714
Shares redeemed .............................. (677,050) (7,744,178) (859,354) (9,918,229)
---------- ------------ ---------- ------------
Net increase ................................. 115,099 $ 1,343,173 852,417 $ 10,318,880
========== ============ ========== =============
</TABLE>

#Unaudited
<PAGE>
13

O'SHAUGHNESSY CORNERSTONE GROWTH FUND
O'SHAUGHNESSY CORNERSTONE VALUE FUND

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
PER SHARE OPERATING PERFORMANCE (FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- ------------------------------------------------------------------------------------------------------------------
CORNERSTONE GROWTH FUND CORNERSTONE VALUE FUND
------------------------------------- -----------------------------------
Six Months Year Nov. 1, 1996* Six Months Year Nov. 1, 1996*
Ended Ended through Ended Ended through
Mar. 31,# Sept. 30, Sept. 30, Mar. 31,# Sept. 30, Sept. 30,
1999 1998 1997 1999 1998 1997
---------- --------- ------------- ---------- -------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period .................. $ 9.57 $ 15.30 $ 10.00 $ 10.84 $ 11.50 $ 10.00
------ ------- ------- ------- ------- -------
Income from investment operations:
Net investment (loss) income ......... (0.04) (0.07) (0.02) 0.15 0.21 0.15
Net realized and unrealized (loss)
gain on investments ................ 1.42 (3.88) 5.32 1.31 (0.70) 1.37
------ ------- ------- ------- ------- -------
Total from investment operations ....... 1.38 (3.95) 5.30 1.46 (0.49) 1.52
------ ------- ------- ------- ------- -------
Less distributions:
From net investment income ........... -- -- -- (0.26) (0.17) (0.02)
From net capital gains ............... -- (1.78) -- (0.50) -- --
------ ------- ------- ------- ------- -------
Total distributions .................... -- (1.78) -- (0.76) (0.17) (0.02)
------ ------- ------- ------- ------- -------
Net asset value, end of period ......... $10.95 $ 9.57 $ 15.30 $ 11.54 $ 10.84 $ 11.50
====== ======= ======= ======= ======= =======

TOTAL RETURN ........................... 14.42% (27.63%) 53.05%** 13.58% (4.32%) 15.21%**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) $ 96.5 $ 80.4 $ 91.3 $ 24.9 $ 21.9 $ 13.5

Ratio of expenses to average net assets:
Before expense reimbursement........ 1.16%++ 1.16% 1.63%++ 1.45%++ 1.45% 2.66%++
After expense reimbursement......... 1.16%++ 1.16% 1.56%++ 1.45%++ 1.45% 1.85%++

Ratio of net investment (loss) income to
average net assets:
Before expense reimbursement........ (0.73%)++ (0.86%) (1.19%)++ 2.45%++ 2.12% 1.93%++
After expense reimbursement......... (0.73%)++ (0.86%) (1.12%)++ 2.45%++ 2.12% 2.73%++

Portfolio turnover rate................. 124.47% 119.98% 15.52% 95.81% 51.56% 2.01%
</TABLE>

#Unaudited.

*Commencement of operations.

**Not Annualized.

++Annualized.
<PAGE>
14

O'SHAUGHNESSY CORNERSTONE GROWTH FUND
O'SHAUGHNESSY CORNERSTONE VALUE FUND

NOTES TO FINANCIAL STATEMENTS AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

NOTE 1 - ORGANIZATION

The O'Shaughnessy Cornerstone Growth Fund and O'Shaughnessy Cornerstone
Value Fund (the "Funds") are each a series of shares of O'Shaughnessy Funds,
Inc., which is registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The Funds began operations
on November 1, 1996.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Funds. These policies are in conformity with generally accepted
accounting principles.

A. SECURITY VALUATION: The Funds' investments are carried at market
value. Securities listed on an exchange or quoted on a National Market
System are valued at the last sale price. Other securities are valued
at the mean between the last bid and asked prices. Securities for
which market quotations are not readily available, if any, are valued
following procedures approved by the Board of Directors. Short-term
investments are valued at amortized cost, which approximates market
value.

B. FEDERAL INCOME TAXES: It is each Fund's policy to comply with the
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.

C. SECURITY TRANSACTIONS, DIVIDENDS AND DISTRIBUTIONS: Security
transactions are accounted for on the trade date. Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
Realized gains and losses on securities sold are determined under the
identified cost basis.

D. DEFERRED ORGANIZATION COSTS: The Funds have each incurred expenses of
$25,191 in connection with their organization. These costs have been
deferred and are being amortized on a straight-line basis over a
period of sixty months from the date the Fund commenced investment
operations.

E. USE OF ESTIMATES: The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net
assets during the reporting period. Actual results could differ from
those estimates.

NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

For the six months ended March 31, 1999, O'Shaughnessy Capital Management,
Inc. (the "Advisor") provided the Funds with investment management services
under an Investment Advisory Agreement. The Advisor furnished all investment
advice, office space, facilities, and provides most of the personnel needed
<PAGE>
15

O'SHAUGHNESSY CORNERSTONE GROWTH FUND
O'SHAUGHNESSY CORNERSTONE VALUE FUND

NOTES TO FINANCIAL STATEMENTS, Continued
- --------------------------------------------------------------------------------

by the Funds. As compensation for its services, the Advisor is entitled to a
monthly fee from each Fund at the annual rate of 0.74 % based upon the average
daily net assets of the Funds.

The Funds are responsible for their own operating expenses. The Advisor has
agreed to reduce fees payable to it by the Funds or reimburse the Funds to the
extent necessary to limit each Fund's aggregate annual operating expenses to
2.00% of average net assets (the "expense cap"). Any such reductions made by the
Advisor in its fees or reimbursement of Fund expenses, which are the Fund's
obligation, are subject to recapture by the Advisor provided the Fund is able to
effect such recapture while keeping total operating expenses at or below the
annual expense cap. No recapture will be made after September 30, 2000. Any
amounts reimbursed will have the effect of increasing fees otherwise paid by the
Fund. No reimbursed expense were subject to recapture by the Advisor from the
Cornerstone Growth Fund at March 31, 1999. Cumulative reimbursed expenses
subject to recapture by the Advisor from the Cornerstone Value Fund totaled
$46,300 at March 31, 1999.

Investment Company Administration, L.L.C. (the "Administrator") acts as the
Funds' Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Funds; prepares reports and materials to be supplied to the trustees;
monitors the activities of the Funds' custodian, transfer agent and accountants;
coordinates the preparation and payment of the Funds' expenses and reviews the
Funds' expense accruals. For its services, the Administrator receives a monthly
fee per portfolio at the following annual rate:

Under $100 million - 0.10% of average daily net assets, subject to a
minimum fee of $40,000 annually
$100 to $200 million - 0.05% of average daily net assets
Over $200 million - 0.03% of average daily net assets

First Fund Distributors, Inc. (the "Distributor") acts as the Funds'
principal underwriter in a continuous public offering of the Funds' shares. The
Distributor is an affiliate of the Administrator.

Certain officers of the Funds are also officers and/or directors of the
Administrator and the Distributor.

NOTE 4 - PURCHASES AND SALES OF SECURITIES

For the six months ended March 31, 1999, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, for the
Cornerstone Growth Fund were $129,142,792 and $125,684,666, respectively.

For the six months ended March 31, 1999, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, for the
Cornerstone Value Fund were $23,214,401 and $22,961,540, respectively.

NOTE 5 - SECURITIES LENDING

For the six months ended March 31, 1999, for the Cornerstone Growth Fund
and Cornerstone Value Fund, respectively, loaned securities valued at $9,658,137
and $1,765,294 to certain brokers, dealers and other financial institutions who
pay the Funds negotiated lenders' fees. For collateral, the Funds received
$9,851,300 and $1,800,600, respectively, an amount equal to at 102% of the
market value of the loaned
<PAGE>
16

O'SHAUGHNESSY CORNERSTONE GROWTH FUND
O'SHAUGHNESSY CORNERSTONE VALUE FUND

NOTES TO FINANCIAL STATEMENTS AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

securities, marked-to-market daily. The risks to the Funds, of lending their
securities, include delay in recovery of securities loaned or loss of rights in
the collateral should the borrower of the securities fail financially.

NOTE 6 - INCOME TAXES

At March 31, 1999, the cost of securities for income tax purposes in the
Cornerstone Growth Fund was approximately $99,824,582. Unrealized appreciation
and depreciation of securities were as follows:

Gross unrealized appreciation.......................... $5,996,585
Gross unrealized depreciation.......................... (9,365,709)
-----------
Net unrealized depreciation...................... $(3,369,124)
===========

At March 31, 1999, the cost of securities for income tax purposes in the
Cornerstone Value Fund was approximately $24,776,763. Unrealized appreciation
and depreciation of securities were as follows:

Gross unrealized appreciation.......................... $ 1,332,547
Gross unrealized depreciation.......................... (1,420,207)
-----------
Net unrealized depreciation...................... $ (87,660)
===========
<PAGE>
Cornerstone Growth Fund
Cornerstone Value Fund
SEMI-ANNUAL REPORT
MARCH 31, 1999

INVESTMENT ADVISOR
O'Shaughnessy Capital Management, Inc.
35 Mason Street
Greenwich, Connecticut 06830

ADMINISTRATOR
Investment Company Administration, L.L.C.
4455 E. Camelback Road, Suite 261 E
Phoenix, Arizona 85018

DISTRIBUTOR
First Fund Distributors, Inc.
4455 E. Camelback Road, Suite 261 E
Phoenix, Arizona 85018

TRANSFER AGENT
Firstar Mutual Fund Services, LLC
615 E. Michigan Street
Milwaukee, Wisconsin 53202

INDEPENDENT AUDITOR
McGladrey & Pullen, LLP
555 Fifth Avenue
New York, New York 10017

LEGAL COUNSEL
Swidler Berlin Shereff Friedman, LLP
919 Third Avenue
New York, New York 10022

This report is intended for shareholders of
O'Shaughnessy Cornerstone Growth Fund and O'Shaughnessy
Cornerstone Value Fund and may not be used as sales
literature unless preceded or accompanied by a current
prospectus. Past performance results shown in this
report should not be considered a representation of
future performance. Share price and returns will
fluctuate so that shares, when redeemed, may be more or
less than their original cost. Statements and other
information herein are dated and are subject to change.
<PAGE>
[LOGO] O'SHAUGHNESSY
FUNDS INC.

35 MASON STREET
GREENWICH, CONNECTICUT
06830
877 OSFUNDS
www.osfunds.com
<PAGE>
[LOGO] O'SHAUGHNESSY
FUNDS INC.

BUILDING
NEW STANDARDS
FOR INVESTMENT
SUCCESS

DOGS OF THE MARKET(TM) FUND
SEMI-ANNUAL REPORT
MARCH 31, 1999
<PAGE>
O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

May 11, 1999

Dear Fellow Shareholder:

Enclosed is the Semi-annual Report for the O'Shaughnessy Dogs of the Market
Fund. The Report contains financial statements for the Funds during the
six-month period ended March 31, 1999 and the Fund's portfolio on that date. For
the period of October 1, 1998 to March 31, 1999, the Fund had a return of 6.18%.

I believe that we are just now seeing a movement back into value stocks. Our
Dogs of the Market Fund, rich in undervalued cyclical stocks sporting high
dividend yields, jumped 12.40% in April 1999. That certainly seems like a change
in investor sentiment to me! Over the same period, the S&P 500 rose 3.87%.

Yet despite this strong short-term showing, we remain focused on the long-term.
The Dogs of the Market Fund's strong performance in April points to the futility
of trying to time the market or your investment style, because no one could have
predicted it. And it underscores why your focus should be not on what a fund
does over a month but what you can expect it to do over the time that you hold
it. That's where the real power of Strategy Indexing(R) has always been--and
always will be.

As always, I hope that together, we can reach our long-term goals by sticking
with our time-tested investment strategies.

Sincerely,

/s/ James P. O'Shaughnessy
- -----------------------------
James P. O'Shaughnessy
<PAGE>
O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

The Fund's annual average total return from inception on November 1, 1996
through March 31, 1999 was 10.80%. The Fund's one-year total return through
March 31, 1999 was (6.02)%

Performance Figures of the Fund and indexes referenced represent past
performance and are not indicative of future performance of the Fund or the
indexes. Share value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original investment.

The Fund is distributed by First Fund Distributors, Inc., Phoenix, AZ. Member
NASD.
<PAGE>
3

O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

1 ) General Motors Corporation......................... 4.36%

2 ) J.P. Morgan & Co., Incorporated.................... 4.08%

3 ) Newell Co.......................................... 4.05%

4 ) Chevron Corporation................................ 3.83%

5 ) E. I. du Pont de Nemours and Company............... 3.76%

6 ) Royal Dutch Petroleum Company-ADR.................. 3.75%

7 ) Johnson Controls, Inc.............................. 3.74%

8 ) ALLTELL Corporation................................ 3.58%

9 ) Kellogg Company.................................... 3.49%

10 ) Exxon Corporation.................................. 3.47%
<PAGE>
4

O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

PORTFOLIO OF INVESTMENTS AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 99.04% Market Value
- --------------------------------------------------------------------------------

AUTO MANUFACTURERS: 4.36%
10,300 General Motors Corporation......................... $ 894,813
-----------

AUTO PARTS & EQUIPMENT: 6.63%
36,200 Cooper Tire & Rubber Company....................... 665,175
14,000 The Goodyear Tire & Rubber Company................. 697,375
-----------
1,362,550
-----------
BANKS: 4.08%
6,800 J.P. Morgan & Co., Incorporated.................... 838,950
-----------

CHEMICALS: 10.06%
18,800 Air Products and Chemicals, Inc.................... 643,901
13,300 E. I. du Pont de Nemours and Company............... 772,231
24,500 Nalco Chemical Company............................. 650,781
-----------
2,066,913
-----------
CONSUMER PRODUCTS: 2.20%
17,800 American Greetings Corporation..................... 451,675
-----------

COSMETICS / PERSONAL CARE: 2.98%
16,300 International Flavors & Fragrances, Inc............ 612,269
-----------

DISTRIBUTION / WHOLESALE: 3.10%
22,100 Genuine Parts Company.............................. 636,756
-----------

ELECTRICAL COMPONENTS AND EQUIPMENT: 3.09%
12,000 Emerson Electric................................... 635,250
-----------

ELECTRONICS: 3.74%
12,300 Johnson Controls, Inc.............................. 767,213
-----------

FOOD: 15.46%
13,700 Bestfoods.......................................... 643,900
23,000 ConAgra, Inc....................................... 587,938
12,800 H.J. Heinz Company................................. 606,400
21,200 Kellogg Company.................................... 716,825
16,600 Winn-Dixie Stores, Inc............................. 620,425
-----------
3,175,488
-----------
<PAGE>
5

O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

PORTFOLIO OF INVESTMENTS AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 99.04% Market Value
- --------------------------------------------------------------------------------

HOUSEWARES: 4.05%
17,500 Newell Co.*........................................ $ 831,250
-----------

MACHINERY - CONSTRUCTION & MINING: 3.47%
15,500 Caterpillar Inc.................................... 712,031
-----------

MISCELLANEOUS MANUFACTURING: 9.76%
10,300 Eastman Kodak Company.............................. 657,913
9,800 Minnesota Mining and Manufacturing Company......... 693,350
19,200 National Service Industries, Inc................... 654,000
-----------
2,005,263
-----------
OIL & GAS PRODUCERS: 11.05%
8,900 Chevron Corporation................................ 787,094
10,100 Exxon Corporation.................................. 712,681
14,800 Royal Dutch Petroleum Company-ADR.................. 769,600
-----------
2,269,375
-----------
PACKAGING AND CONTAINERS: 2.90%
19,200 Bemis Company, Inc................................. 596,400
-----------

RETAIL: 3.42%
17,950 The May Department Stores Company.................. 702,294
-----------

TELEPHONE: 3.58%
11,800 ALLTELL Corporation................................ 736,025
-----------

TOBACCO: 5.09%
13,900 Philip Morris Companies Inc........................ 489,106
21,300 UStel, Inc......................................... 556,463
-----------
1,045,569
-----------

Total Common Stocks (cost $21,904,476)............. 20,340,081
-----------

Other Assets less Liabilities: 0.96%............... 198,018
-----------
TOTAL NET ASSETS: 100.00% ......................... $20,538,099
===========

See Notes to Financial Statements.
<PAGE>
6

O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

STATEMENT OF ASSETS AND LIABILITIES AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

ASSETS
Investments in securities, at value (identified cost
$21,904,476)................................................ $ 20,340,081
Receivables:
Portfolio securities sold .................................. 346,826
Fund shares sold ........................................... 31,130
Dividends and interest ..................................... 45,757
Other ...................................................... 3,500
Deferred organization costs .................................. 13,269
Prepaid expenses ............................................. 25,365
------------
Total assets ............................................ 20,805,928
------------

LIABILITIES
Payables:
Fund advanced by custodian ................................. 236,013
Fund shares repurchased .................................... 20,782
Advisory fee ............................................... 1,868
Administration fee ......................................... 3,397
Accrued expenses ............................................. 5,769
------------
Total liabilities ....................................... 267,829
------------
NET ASSETS ..................................................... $ 20,538,099
============

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
[$20,538,099/1,757,358 shares outstanding;
25,000,000,000 shares (par value $.0001) authorized] ... $ 11.69
============

SOURCE OF NET ASSETS
Paid-in capital .............................................. $ 20,857,284
Undistributed net investment income .......................... 106,583
Undistributed net realized gain on investment transactions ... 1,138,626
Net unrealized depreciation of investments ................... (1,564,394)
------------
Net assets ................................................. $ 20,538,099
============

See Notes to Financial Statements.
<PAGE>
7

O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

INVESTMENT INCOME
Income:
Dividends (net of foreign witholding tax of $979) .......... $ 289,561
Interest ................................................... 1,981
Securities lending ......................................... 23,016
-----------
Total income ............................................. 314,558
-----------
Expenses:
Advisory fees .............................................. 85,006
Custodian and accounting fees .............................. 17,452
Administration fees (Note 3) ............................... 17,018
Registration fees .......................................... 13,901
Reports to shareholders .................................... 10,969
Transfer agent fees ........................................ 10,595
Professional fees .......................................... 4,906
Directors' fees ............................................ 3,689
Amortization of organization costs ......................... 2,512
Other ...................................................... 2,511
-----------
Total expenses ........................................... 168,559
Less: expense reimbursement (Note 3) ..................... (41,498)
-----------
Net expenses ............................................. 127,061
-----------
NET INVESTMENT INCOME .................................. 187,497
-----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from security transactions ............... 1,327,527
Net change in unrealized depreciation of investments ....... (66,568)
-----------
Net realized and unrealized gain on investments .......... 1,260,959
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ... $ 1,448,456
===========

See Notes to Financial Statements.
<PAGE>
8

O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
March 31, 1999* September 30, 1998
--------------- ------------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income ............................... $ 187,497 $ 208,847
Net realized gain from security transactions ........ 1,327,527 408,727
Net change in unrealized depreciation of investments (66,568) (1,760,280)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ................................ 1,448,456 (1,142,706)
------------ ------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ............................... (274,381) (69,959)
Net realized gains from security transactions ....... (597,940) (443,982)
------------ ------------
TOTAL DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS . (872,321) (513,941)
------------ ------------

CAPITAL SHARE TRANSACTIONS
Net (decrease) increase in net assets derived from
capital shares transactions (a) ................... (2,665,246) 17,035,794
------------ ------------
TOTAL (DECREASE) INCREASE IN NET ASSETS ........... (2,089,111) 15,379,147

NET ASSETS
Beginning of period ................................. 22,627,210 7,248,063
------------ ------------
END OF PERIOD (including undistributed net investment
income of $106,583 and $193,487, respectively) .... $ 20,538,099 $ 22,627,210
============ ============

(a) A summary of capital shares transactions is as follows:

Six Months Year
Ended Ended
March 31, 1999* September 30, 1998
------------------------ -------------------------
Shares Value Shares Value
-------- ------------ --------- ------------
Shares sold ........... 636,755 $ 7,860,218 2,072,680 $ 25,664,085
Shares issued on reinvestment
of distributions .... 62,336 786,055 42,247 504,011
Shares redeemed ....... (925,930) (11,311,519) (736,926) (9,132,302)
-------- ------------ --------- ------------
Net (decrease) increase (226,839) $ (2,665,246) 1,378,001 $ 17,035,794
======== ============ ========= ============
</TABLE>

*Unaudited.

See Notes to Financial Statements.
<PAGE>
9

O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE
(FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- ---------------------------------------------------------------------------------------------------------------
Six Months Year November 1, 1996*
Ended Ended through
March 31, 1998# September 30, 1998 September 30, 1997
--------------- ------------------ ------------------
<S> <C> <C> <C>
Net asset value, beginning of period.............. $11.40 $11.96 $10.00
------ ------ ------
Income from investment operations:
Net investment income....................... 0.10 0.10 0.10
Net realized and unrealized gain
on investments........................... 0.64 0.02 1.87
------ ------ ------
Total from investment operations.................. 0.74 0.12 1.97
------ ------ ------

Less distributions:
From net investment income.................. (0.14) (0.09) (0.01)
From net capital gains...................... (0.31) (0.59) (0.00)
------ ------ ------
Total distributions............................... (0.45) (0.68) (0.01)
------ ------ ------

Net asset value, end of period.................... $11.69 $11.40 $11.96
====== ====== ======

TOTAL RETURN ..................................... 6.18% 0.74% 19.74%**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions).............. $ 20.5 $ 22.6 $ 7.2

Ratio of expenses to average net assets:
Before expense reimbursement................ 1.45%++ 1.46% 4.28%++
After expense reimbursement................. 1.09%++ 1.46% 1.99%++

Ratio of net investment income (loss) to average
net assets:
Before expense reimbursement................ 1.25%++ 1.24% (0.51%)++
After expense reimbursement................. 1.61%++ 1.24% 1.78%++

Portfolio turnover rate........................... 56.76% 44.35% 118.44%
</TABLE>

#Unaudited.

*Commencement of operations.

**Not Annualized.

++Annualized.

See Notes to Financial Statements.
<PAGE>
10

O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

NOTES TO FINANCIAL STATEMENTS AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

NOTE 1 - ORGANIZATION

The O'Shaughnessy Dogs of the Market(TM) Fund (the "Fund") is a series of shares
of O'Shaughnessy Funds, Inc., which is registered under the Investment Company
Act of 1940 as a diversified, open-end management investment company.
The Fund began operations on November 1, 1996.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.

A. SECURITY VALUATION: The Fund's investments are carried at market
value. Securities listed on an exchange or quoted on a National Market
System are valued at the last sale price. Other securities are valued
at the mean between the last bid and asked prices. Securities for
which market quotations are not readily available, if any, are valued
following procedures approved by the Board of Directors. Short-term
investments are valued at amortized cost, which approximates market
value.

B. FEDERAL INCOME TAXES: It is the Fund's policy to comply with the
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.

D. DEFERRED ORGANIZATION COSTS: The Fund has incurred expenses of $25,191
in connection with its organization. These costs have been deferred
and are being amortized on a straight-line basis over a period of
sixty months from the date the Fund commenced investment operations.

NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

For the six months ended March 31, 1999, O'Shaughnessy Capital Management,
Inc. (the "Advisor") provided the Fund with investment management services under
an Investment Advisory Agreement. The Advisor furnished all investment advice,
office space, facilities, and provides most of the personnel needed by the Fund.
As compensation for its services, the Advisor is entitled to a monthly fee at
the annual rate of 0.74% based upon the average daily net assets of the Fund.
<PAGE>
11

O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

NOTES TO FINANCIAL STATEMENTS, Continued
- --------------------------------------------------------------------------------

The Fund is responsible for its own operating expenses. The Advisor has
agreed to reduce fees payable to it by the Fund or reimburse the Fund to the
extent necessary to limit the Fund's aggregate annual operating expenses to
2.00% of average net assets (the "expense cap"). Any such reductions made by the
Advisor in its fees or reimbursement of Fund expenses, which are the Fund's
obligation, are subject to recapture by the Advisor provided the Fund is able to
effect such recapture while keeping total operating expenses at or below the
annual expense cap. No recapture will be made after September 30, 2000. Any
amounts reimbursed will have the effect of increasing fees otherwise paid by the
Fund. For the six months ended March 31, 1999, the Advisor reimbursed the Fund
in the amount of $7,805. Cumulative reimbursed expenses subject to recapture by
the Advisor totaled $41,498 at March 31, 1999.

Investment Company Administration, L.L.C. (the "Administrator") acts as
the Fund's Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Fund; prepares reports and materials to be supplied to the trustees;
monitors the activities of the Fund's custodian, transfer agent and accountants;
coordinates the preparation and payment of Fund's expenses and reviews the
Fund's expense accruals. For its services, the Administrator receives a monthly
fee per portfolio at the following annual rate:

First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Fund's shares. The
Distributor is an affiliate of the Administrator.

Certain officers of the Fund are also officers and/or directors of the
Administrator and the Distributor.

NOTE 4 - PURCHASES AND SALES OF SECURITIES

For the six months ended March 31, 1999, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$13,137,680 and $16,334,843, respectively.

NOTE 5 - SECURITIES LENDING

For the six months ended March 31, 1999, securities valued at $1,725,000
were on loan from the Fund to certain brokers, dealers and other financial
institutions who pay the Fund negotiated lenders' fees. For collateral, the Fund
received $1,759,500, an amount equal to at 102% of the market value of the
loaned securities, marked-to-market daily. The risks to the Fund, of lending its
securities, include delay in recovery of securities loaned or loss of rights in
the collateral should the borrower of the securities fail financially.
<PAGE>
12

O'SHAUGHNESSY DOGS OF THE MARKET(TM) Fund

NOTES TO FINANCIAL STATEMENTS, Continued
- --------------------------------------------------------------------------------

NOTE 6 - INCOME TAXES

At March 31, 1999, the cost of securities for income tax purposes was
approximately $22,026,869. Unrealized appreciation and depreciation of
securities were as follows:

Gross unrealized appreciation.......................... $ 659,258
Gross unrealized depreciation.......................... (2,223,652)

Net unrealized depreciation.......................... $ (1,564,394)
============
<PAGE>
INVESTMENT ADVISOR
O'Shaughnessy Capital Management, Inc.
35 Mason Street
Greenwich, Connecticut 06830

ADMINISTRATOR
Investment Company Administration, L.L.C.
4455 E. Camelback Road, Suite 261 E
Phoenix, Arizona 85018

DISTRIBUTOR
First Fund Distributors, Inc.
4455 E. Camelback Road, Suite 261 E
Phoenix, Arizona 85018

TRANSFER AGENT
Firstar Mutual Fund Services, LLC
615 E. Michigan Street
Milwaukee, Wisconsin 53202

INDEPENDENT AUDITOR
McGladrey & Pullen, LLP
555 Fifth Avenue
New York, New York 10017

LEGAL COUNSEL
Swidler Berlin Shereff Friedman, LLP
919 Third Avenue
New York, New York 10022

This report is intended for shareholders of
O'Shaughnessy Dogs of the Market(TM) Fund and may not
be used as sales literature unless preceded or
accompanied by a current prospectus. Past performance
results shown in this report should not be considered a
representation of future performance. Share price and
returns will fluctuate so that shares, when redeemed,
may be more or less than their original cost.
Statements and other information herein are dated and
are subject to change.
<PAGE>
[LOGO] O'SHAUGHNESSY
FUNDS INC.

35 MASON STREET
GREENWICH, CONNECTICUT
06830
877 OSFUNDS
www.osfunds.com
<PAGE>
[LOGO] O'SHAUGHNESSY
FUNDS INC.

BUILDING
NEW STANDARDS
FOR INVESTMENT
SUCCESS

AGGRESSIVE GROWTH FUND

MARCH 31, 1999
<PAGE>
O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

March 11, 1999

Dear Fellow Shareholder:

Enclosed is the Semi-annual Report for the O'Shaughnessy Aggressive Growth Fund.
The Report contains financial statements for the Funds during the six-month
period ended March 31, 1999 and the Fund's portfolio on that date. For the
period of October 1, 1998 to March 31, 1999, the Fund had a return of 27.01%.

I believe that we are just now seeing a broadening of the rally and a movement
into the mid-cap growth stocks that we hold in our Aggressive Growth Fund. The
last six months saw our smaller names catching up with the S&P 500. Yet despite
the Fund's good short-term showing, we remain focused on the long-term. The
Aggressive Growth Fund's strong performance over the last six months points to
the futility of trying to time the market or your investment style, because no
one could have predicted the movement away from the expensive mega-cap names
that dominate the S&P 500. And it underscores why your focus should be not on
what a fund does over a month but what you can expect it to do over the time
that you hold it. That's where the real power of Strategy Indexing(R) has always
been--and always will be.

As always, I hope that together, we can reach our long-term goals by sticking
with our time-tested investment strategies.

Sincerely,

/s/ James P. O'Shaughnessy
- -------------------------------
James P. O'Shaughnessy
<PAGE>
O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

The Fund's annual average total return from inception on November 1, 1996
through March 31, 1999 was 14.44%. The Fund's one-year total return through
March 31, 1999 was (3.89)%

The Fund is distributed by First Fund Distributors, Inc., Phoenix, AZ. Member
NASD.
<PAGE>
3

O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

1 ) VISX Incorporated................................... 5.93%

2 ) Best Buy Co., Inc................................... 3.89%

3 ) Quicksilver, Inc.................................... 3.54%

4 ) Biogen, Inc......................................... 3.49%

5 ) Sun Microsystems, Inc............................... 3.33%

6 ) Capital One Financial Corporation................... 3.12%

7 ) CTS Corporation..................................... 2.92%

8 ) Nokia Corporation................................... 2.92%

9 ) Xilinx, Inc......................................... 2.88%

10 ) Dycom Industries, Inc............................... 2.87%

<PAGE>
4

O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

PORTFOLIO OF INVESTMENTS AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 98.85% Market Value
- --------------------------------------------------------------------------------

APPAREL: 3.54%
8,500 Quicksilver, Inc................................... $ 359,125
-----------

BIOTECHNOLOGY: 8.13%
3,100 Biogen, Inc.*...................................... 354,369
9,500 Chiron Corporation*................................ 208,406
5,200 Genzyme Corporation*............................... 262,275
-----------
825,050
-----------

COMMERCIAL SERVICES: 2.78%
8,400 Pharmaceutical Product Development, Inc.*.......... 281,925
-----------

COMPUTERS: 10.12%
5,800 Apple Computer, Inc................................ 208,438
2,500 Lexmark International Group, Inc.*................. 279,375
2,700 Sun Microsystems, Inc.............................. 337,669
7,300 Unisys Corporation................................. 202,119
-----------
1,027,600
-----------
DISTRIBUTION / WHOLESALE: 1.55%
15,500 Owens & Minor, Inc................................. 156,938
-----------

DIVERSIFIED FINANCIAL SERVICES: 5.59%
2,100 Capital One Financial Corporation.................. 317,100
10,500 MBNA Corporation................................... 250,688
-----------
567,788
-----------

ELECTRIC: 2.78%
6,100 PECO Energy Company................................ 282,125
-----------

ELECTRONICS: 2.92%
6,000 CTS Corporation.................................... 296,625
-----------

ENGINEERING AND CONSTRUCTION: 2.87%
6,700 Dycom Industries, Inc.............................. 291,450
-----------

FOOD: 4.22%
9,200 IBP, Inc........................................... 171,350
4,300 Kroger Co.*........................................ 257,463
-----------
428,813
-----------
<PAGE>
5

O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

PORTFOLIO OF INVESTMENTS AT MARCH 31, 1999 (UNAUDITED), Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------

HEALTH CARE: 8.10%
5,600 VISX Incorporated.................................. $ 602,350
2,900 Well Point Health Networks, Inc.................... 219,856
-----------
822,206
-----------
HOME BUILDERS: 2.28%
16,500 Winnebago Industries............................... 231,000
-----------

HOME FURNISHINGS: 2.44%
4,100 Maytag Corporation................................. 247,538
-----------

MISCELLANEOUS MANUFACTURING: 2.21%
4,800 Carlisle Companies Incorporated.................... 224,400
-----------

PACKAGING AND CONTAINERS: 2.59%
5,600 Ball Corporation*.................................. 262,850
-----------

PHARMACEUTICALS: 5.16%
5,200 Barr Laboratories.................................. 158,600
7,100 Bergen Brunswig Corporation........................ 142,000
7,800 Bindley Western Industries, Inc.................... 222,788
-----------
523,388
-----------
RETAIL: 11.77%
2,300 American Eagle Outfitters, Inc..................... 164,881
6,300 AnnTaylor, Inc.*................................... 278,381
7,600 Best Buy Co., Inc.*................................ 395,200
18,600 Handleman Company.................................. 248,775
6,700 Micro Warehouse, Inc.*............................. 108,038
-----------
1,195,275
-----------

SEMICONDUCTORS: 2.88%
7,200 Xilinx, Inc........................................ 292,050
-----------

SOFTWARE: 5.34%
21,300 Acclaim Entertainment, Inc.*....................... 190,369
4,200 Network Associates, Inc............................ 128,888
8,450 Oracle Systems Corporation......................... 222,869
-----------
542,125
-----------
TELECOMMUNICATION: 2.92%
1,900 Nokia Corporation*................................. 295,925
-----------
<PAGE>
6

O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

TELECOMMUNICATION EQUIPMENT: 2.21%
1,800 QUALCOM Incorporated*.............................. $ 223,875
-----------

TEXTILES: 3.82%
6,200 Mohawk Industries, Inc............................. 186,000
10,900 Shaw Industries, Inc............................... 201,650
-----------
387,650
-----------

TRANSPORTATION: 2.65%
2,900 FDX Corporation*................................... 269,156
-----------

Total Common Stocks (cost $9,220,638).............. 10,034,875
-----------

Other Assets less Liabilities: 1.15%............... 116,923
-----------

TOTAL NET ASSETS: 100.00% ......................... $10,151,798
===========

See Notes to Financial Statements.
<PAGE>
7

O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

ASSETS
Investments in securities, at value
(identified cost $9,220,638) $ 10,034,875
Receivables:
Portfolio securities sold .................................... 401,453
Fund shares sold ............................................. 25
Dividends and interest ....................................... 3,183
Other ........................................................ 2,505
Deferred organization costs .................................... 13,058
Prepaid expenses and other ..................................... 19,668
------------
Total assets ............................................... 10,474,767
------------

LIABILITIES
Payables:
Fund shares repurchased ...................................... 921
Portfolio securities purchased ............................... 86,148
Funds advanced by custodian .................................. 213,619
Advisory fee ................................................. 4,026
Administration fee ........................................... 3,397
Accrued expenses ............................................... 14,858
------------
Total liabilities .......................................... 322,969
------------

NET ASSETS ....................................................... $ 10,151,798
============

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
[$10,151,798/784,863 shares outstanding;
25,000,000,000 shares (par value $.0001) authorized] ......... $ 12.93
============

SOURCE OF NET ASSETS
Paid-in capital ................................................ $ 9,942,218
Accumulated net investment loss ................................ (212,853)
Accumulated net realized loss on investment transactions ....... (391,804)
Net unrealized appreciation of investments ..................... 814,237
------------
Net assets ................................................... $ 10,151,798
============

See Notes to Financial Statements.
<PAGE>
8

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

INVESTMENT INCOME
Income:
Dividends (net of foreign withholding tax of $402) ......... $ 22,707
Interest ................................................... 638
Securities lending ......................................... 4,003
-----------
Total income ............................................. 27,348
-----------
Expenses:
Advisory fees (Note 3) ..................................... 33,724
Custodian and accounting fees .............................. 18,449
Administration fees (Note 3) ............................... 14,446
Registration fees .......................................... 10,564
Reports to shareholders .................................... 6,483
Transfer agent fees ........................................ 8,576
Professional fees .......................................... 3,815
Directors' fees ............................................ 3,689
Amortization of deferred organization costs (Note 2-D) ..... 2,512
Other ...................................................... 2,153
-----------
Total expenses ........................................... 104,411
Less: expense reimbursement (Note 3) ..................... (7,805)
-----------
Net expenses ............................................. 96,606
-----------
NET INVESTMENT LOSS .................................... (69,258)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss from security transactions ................. (465,505)
Net change in unrealized appreciation on investments ......... 2,801,885
-----------
Net realized and unrealized gain on investments ............ 2,336,380
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..... $ 2,267,122
===========

See Notes to Financial Statements.
<PAGE>
9

O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
March 31, 1999# September 30, 1998
--------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss .................................... $ (69,258) $ (143,595)
Net realized (loss) gain on security transactions ...... (465,505) 613,829
Net change in unrealized appreciation on investments.... 2,801,885 (2,932,394)
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .......................... 2,267,122 (2,462,160)

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains from security transactions .......... (527,839) (104,043)
------------ -----------

CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share
transactions (a) ..................................... 69,733 5,324,737
------------ -----------
TOTAL INCREASE IN NET ASSETS ..................... 1,809,016 2,758,534

NET ASSETS
Beginning of period .................................... 8,342,782 5,584,248
------------ -----------
END OF PERIOD (including accumulated net investment
loss of $212,853 and $143,595, respectively) ......... $ 10,151,798 $ 8,342,782
============ ===========

(a) A summary of capital shares transactions is as follows:

Six Months Year
Ended Ended
March 31, 1999# September 30, 1998
----------------------- ------------------------

Shares Value Shares Value
-------- ---------- ------- -----------
Shares sold..................... 208,565 $2,581,466 825,148 $10,967,878
Shares issued on reinvestment
of distribution............... 39,298 497,282 8,307 102,677
Shares redeemed................. (240,700) (3,009,015) (446,620) (5,745,818)
-------- ---------- ------- -----------
Net increase.................... 7,163 $ 69,733 386,835 $ 5,324,737
======== ========== ======== ===========
</TABLE>

#Unaudited.

See Notes to Financial Statements.
<PAGE>
10

O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE
(FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------------------------------------
Six Months Year November 1, 1996*
Ended Ended through
March 31, 1999# September 30, 1998 September 30, 1997
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period................ $10.73 $14.29 $10.00
------ ------ ------
Income from investment operations:
Net investment loss........................... (0.09) (0.15) (0.06)
Net realized and unrealized gain (loss)
on investments............................. 2.98 (3.21) 4.35
------ ------ ------
Total from investment operations.................... 2.89 (3.36) 4.29
------ ------ ------

Less distributions:
From net realized gains....................... (0.69) (0.20) --
------ ------ ------

Net asset value, end of period...................... $12.93 $10.73 $14.29
====== ====== ======

TOTAL RETURN ....................................... 27.01% (23.70%) 42.90%**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions)................ $ 10.2 $ 8.3 $ 5.6

Ratio of expenses to average net assets:
Before expense reimbursement.................. 2.14%++ 2.24% 7.01%++
After expense reimbursement................... 1.98%++ 2.00% 1.98%++

Ratio of net investment loss to average net assets:
Before expense reimbursement.................. (1.58%)++ (1.77%) (6.41%)++
After expense reimbursement................... (1.42%)++ (1.53%) (1.39%)++

Portfolio turnover rate............................. 94.50% 206.30% 104.77%
</TABLE>

#Unaudited.

*Commencement of operations.

**Not Annualized.

++Annualized.

See Notes to Financial Statements.
<PAGE>
11

O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

NOTES TO FINANCIAL STATEMENTS AT MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

NOTE 1 - ORGANIZATION

The O'Shaughnessy Aggressive Growth Fund (the "Fund") is a series of shares
of O'Shaughnessy Funds, Inc., which is registered under the Investment Company
Act of 1940 as a diversified, open-end management investment company. The Fund
began operations on November 1, 1996.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.

NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

O'SHAUGHNESSY AGGRESSIVE GROWTH FUND

NOTES TO FINANCIAL STATEMENTS, Continued
- --------------------------------------------------------------------------------

expenses to 2.00% of average net assets (the "expense cap"). Any such reductions
made by the Advisor in its fees or reimbursement of Fund expenses, which are the
Fund's obligation, are subject to recapture by the Advisor provided the Fund is
able to effect such recapture while keeping total operating expenses at or below
the annual expense cap. No recapture will be made after September 30, 2000. Any
amounts reimbursed will have the effect of increasing fees otherwise paid by the
Fund. For the six months ended March 31, 1999, the Advisor reimbursed the Fund
in the amount of $7,805. Cumulative reimbursed expenses subject to recapture by
the Advisor totaled $117,419 at March 31, 1999.

Investment Company Administration, L.L.C. (the "Administrator") acts as the
Fund's Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Fund; prepares reports and materials to be supplied to the trustees;
monitors the activities of the Fund's custodian, transfer agent and accountants;
coordinates the preparation and payment of Fund's expenses and reviews the
Fund's expense accruals. For its services, the Administrator receives a monthly
fee per portfolio at the following annual rate:

First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Fund's shares. The
Distributor is an affiliate of the Administrator.

Certain officers of the Fund are also officers and/or directors of the
Administrator and the Distributor.

NOTE 4 - PURCHASES AND SALES OF SECURITIES

For the six months ended March 31, 1999, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$9,211,833 and $9,822,071, respectively.

NOTE 5 - SECURITIES LENDING

For the six months ended March 31, 1999, securities valued at $865,588 were
on loan from the Fund to certain brokers, dealers and other financial
institutions who pay the Fund negotiated lenders' fees. For collateral, the Fund
received $882,900, an amount equal to at 102% of the market value of the loaned
securities, marked-to-market daily. The risks to the Fund, of lending its
securities, include delay in recovery of securities loaned or loss of rights in
the collateral should the borrower of the securities fail financially.

NOTE 6 - INCOME TAXES

At March 31, 1999, the cost of securities for income tax purposes was
approximately $9,327,454. Unrealized appreciation and depreciation of securities
were as follows:

Gross unrealized appreciation.......................... $1,414,020
Gross unrealized depreciation.......................... 599,783
----------
Net unrealized appreciation...................... $ 814,237
==========
<PAGE>
INVESTMENT ADVISOR
O'Shaughnessy Capital Management, Inc.
35 Mason Street
Greenwich, Connecticut 06830

ADMINISTRATOR
Investment Company Administration, L.L.C.
4455 E. Camelback Road, Suite 261 E
Phoenix, Arizona 85018

DISTRIBUTOR
First Fund Distributors, Inc.
4455 E. Camelback Road, Suite 261 E
Phoenix, Arizona 85018

TRANSFER AGENT
Firstar Mutual Fund Services, LLC
615 E. Michigan Street
Milwaukee, Wisconsin 53202

INDEPENDENT AUDITOR
McGladrey & Pullen, LLP
555 Fifth Avenue
New York, New York 10017

LEGAL COUNSEL
Swidler Berlin Shereff Friedman, LLP
919 Third Avenue
New York, New York 10022

This report is intended for shareholders of
O'Shaughnessy Aggressive Growth Fund and may not be
used as sales literature unless preceded or accompanied
by a current prospectus. Past performance results shown
in this report should not be considered a
representation of future performance. Share price and
returns will fluctuate so that shares, when redeemed,
may be more or less than their original cost.
Statements and other information herein are dated and
are subject to change. *Non-income producing security.