(ROCKLAND LOGO)
SEMI-ANNUAL REPORT
March 31, 1997
THE ROCKLAND GROWTH FUND
RETAIL CLASS
INSTITUTIONAL CLASS
(ROCKLAND LOGO)
SEMI-ANNUAL REPORT
May 22, 1997
Dear Fellow Shareholders,
At the time of this letter, median revenue and earnings growth for the
holdings in your Rockland Growth Fund have accelerated to 52% and 69%,
respectively. The median price to earnings ratio based on 1998 earnings remains
an inexpensive 17 times.
Towards the end of April we saw strong earnings power drive stock prices
upward, and the Fund's shares gained over 10% in 6 trading days with strong
momentum since. Earnings announcements during the second quarter have
demonstrated accelerated power and we are seeing the inexpensive valuations of
small company growth stocks start to expand.
Careful and selective short positions have boosted the Fund's performance by
about 1.2% since the Fund started operations in December. As of May 12, we are
back over our initial net asset value and are outperforming many other small
capitalization growth stock funds of similar style, some of which are still down
in double digits. We strongly believe that owning some of the fastest growing
small companies in America over time will produce superior returns. We also
believe that the small size of the Fund allows us to react much more quickly to
information than the massive funds in the marketplace today, a decided advantage
in your favor.
Thanks for your continued confidence in our stock picking ability. Trustees
and officers of the Fund, as well as employees of the adviser, all have money
invested in Fund shares right alongside yours.
Sincerely yours,
/s/ Richard H. Gould /s/ Charles S. Cruice
Richard H. Gould CFA CMT Charles S. Cruice
GREENVILLE CAPITAL MANAGEMENT, INC.
Presents
THE ROCKLAND GROWTH FUND
a Series of
The Rockland Funds Trust P.O. Box 701 Milwaukee, Wisconsin 53201-0701
1-800-497-3933
ROCKLAND GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 1997 (UNAUDITED)
ASSETS:
Investments, at value (cost $5,944,682) $5,543,870
Receivable from broker for proceeds on securities sold short 210,155
Receivable for investments sold 372,763
Dividends receivable 1,285
Interest receivable 1,371
Organizational expenses, net of accumulated amortization 31,931
Other assets 452
----------
Total Assets 6,161,827
----------
LIABILITIES:
Securities sold short, at value (Proceeds of $209,651) 180,325
Payable for securities purchased 390,038
Payable to Adviser 4,856
Accrued expenses and other liabilities 250,165
----------
Total Liabilities 825,384
----------
NET ASSETS $5,336,443
==========
NET ASSETS CONSIST OF:
Capital stock $6,034,428
Accumulated undistributed net investment loss (11,038)
Accumulated undistributed net realized loss on investments sold (315,461)
Net unrealized appreciation (depreciation) on:
Investments (400,812)
Short positions 29,326
----------
Total Net Assets $5,336,443
==========
RETAIL CLASS:
Net assets $45,598
Shares of beneficial interest outstanding
(unlimited shares of $.001 par value authorized) 5,077
Net asset value and redemption price per share $8.98
==========
Maximum offering price per share $9.26
==========
INSTITUTIONAL CLASS:
Net assets $5,290,845
Shares of beneficial interest outstanding
(unlimited shares of $.001 par value authorized) 588,810
Net asset value, redemption price and offering price per share $8.99
==========
See notes to the financial statements.
ROCKLAND GROWTH FUND
STATEMENT OF OPERATIONS -- DECEMBER 2, 1996 (1)<F1> THROUGH MARCH 31, 1997
(UNAUDITED)
INVESTMENT INCOME:
Dividend income $5,886
Interest income 9,367
----------
Total investment income 15,253
----------
EXPENSES:
Investment advisory fee 13,910
Administration fee 13,164
Shareholder servicing and accounting costs 16,012
Custody fees 1,548
Federal and state registration 5,057
Professional fees 6,882
Reports to shareholders 2,678
Directors' fees and expenses 1,492
Amortization of organizational expenses 2,147
Distribution expenses -- Retail Class 18
Other 4,622
----------
Total operating expenses before reimbursement 67,530
Less: Reimbursement from Adviser (43,132)
----------
Total expenses 24,398
----------
NET INVESTMENT LOSS (9,145)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized loss on investments sold (315,461)
Change in unrealized appreciation (depreciation) on:
Investments (400,812)
Short positions 29,326
----------
Net realized and unrealized loss on investments (686,947)
----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(696,092)
==========
(1)<F1>Commencement of operations.
See notes to the financial statements.
ROCKLAND GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS -- DECEMBER 2, 1996 (1)<F2>THROUGH MARCH 31,
1997 (UNAUDITED)
OPERATIONS:
Net investment loss $(9,145)
Net realized loss on investments sold (315,461)
Change in unrealized appreciation (depreciation) on:
Investments (400,812)
Short positions 29,326
----------
Net decrease in net assets resulting from operations (696,092)
----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 6,033,026
Shares issued to holders in reinvestment of dividends 2,510
----------
Increase in net assets resulting from capital
share transactions 6,035,536
----------
DISTRIBUTIONS TO INSTITUTIONAL CLASS
SHAREHOLDERS FROM NET INVESTMENT INCOME (3,001)
----------
NET INCREASE IN NET ASSETS 5,336,443
NET ASSETS:
Beginning of period 0
----------
End of period (including undistributed net
investment loss of ($11,038)) $5,336,443
==========
(1)<F2>Commencement of operations.
See notes to the financial statements.
ROCKLAND GROWTH FUND
FINANCIAL HIGHLIGHTS -- DECEMBER 2, 1996 (1)<F3>THROUGH MARCH 31, 1997
(UNAUDITED)
RETAIL INSTITUTIONAL
CLASS CLASS
------- -------------
Per Share Data:
Net asset value, beginning of period $10.00 $10.00
------- -------
Income from investment operations:
Net investment loss (6)<F8> (0.05) (0.02)
Net realized and unrealized losses on investments (0.97) (0.97)
------- -------
Total from investment operations (1.02) (0.99)
------- -------
Less distributions:
Dividends from net investment income -- (0.02)
------- -------
Net asset value, end of period $8.98 $8.99
======= ======
Total return (2)<F4> (10.20)% (9.95)%
Supplemental data and ratios:
Net assets, end of period $45,598 $5,290,845
Ratio of operating expenses to average net
assets (3)<F5>(4)<F6> 2.00% 1.75%
Ratio of net investment loss to average net
assets (3)<F5>(4)<F6> (0.90)% (0.65)%
Portfolio turnover rate (5)<F7> 126.13% 126.13%
Average commission rate paid (5)<F7> $0.0507 $0.0507
(1)<F3>Commencement of operations.
(2)<F4>Not annualized for the period December 2, 1996 through March 31, 1997.
(3)<F5>Annualized for the period December 2, 1996 through March 31, 1997.
(4)<F6>Without expense reimbursements of $43,132 for the period December 2, 1996
through March 31, 1997, the ratio of operating expenses to average net assets
would have been 5.10% and 4.85% for the Retail and Institutional classes
respectively, and the ratio of net investment loss to average net assets would
have been (4.00)% and (3.75)% for the Retail and Institutional classes
respectively.
(5)<F7>Portfolio turnover and average commission rate paid are calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
(6)<F8>Net investment loss per share represents net investment loss divided by
the average shares outstanding throughout the period December 2, 1996 through
March 31, 1997.
See notes to the financial statements.
ROCKLAND GROWTH FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 1997 (UNAUDITED)
SHARES VALUE
------- ------
COMMON STOCKS -- 91.3%*<F9>
APPLIANCES -- 1.8%*>F9>
6,500 AIM Safety Company, Inc.**<F10>#<F11> $94,106
---------
AUTOS & TRUCKS -- 2.6%*<F9>
5,000 Lithia Motors, Inc.**<F10> 58,750
4,500 Monaco Coach Corporation**<F10> 80,438
---------
139,188
---------
BUILDING MATERIALS -- 2.3%*<F9>
7,000 Falcon Building Products, Inc.**<F10> 122,500
---------
BUSINESS SERVICES -- 7.5%*<F9>
2,500 America Online, Inc.**<F10> 105,937
9,000 Mail-Well, Inc.**<F10> 177,750
6,000 Personnel Group of America, Inc.**<F10> 117,750
---------
401,437
---------
COMPUTERS -- 5.3%*<F9>
8,000 Advanced Digital Information Corporation**<F10> 102,000
2,000 Network Appliance, Inc.**<F10> 65,000
6,000 Procom Technology, Inc.**<F10> 63,000
1,000 U.S. Robotics Corporation**<F10> 55,375
---------
285,375
---------
CONSUMER NON-DURABLES -- 0.8%*<F9>
3,000 Twinlab Corporation**<F10> 40,500
---------
DISTRIBUTION -- 3.1%*<F9>
8,000 CHS Electronics, Inc.**<F10> 163,000
---------
DRUGS -- 4.7%*<F9>
7,000 Amylin Pharmaceuticals, Inc.**<F10> 84,875
1,000 BioChem Pharma, Inc.**<F10> 43,000
10,000 ChiRex Inc.**<F10> 102,500
3,000 Creative BioMolecules, Inc.**<F10> 22,500
---------
252,875
---------
ELECTRONICS -- 4.6%*<F9>
7,000 ACT Manufacturing, Inc.**<F10> 145,250
3,000 Checkpoint Systems, Inc.**<F10> 51,375
3,000 GenRad, Inc.**<F10> 46,500
---------
243,125
---------
ENTERTAINMENT & LEISURE -- 6.2%*<F9>
5,000 Action Performance Companies, Inc.**<F10> 97,500
4,000 Hollywood Entertainment Corporation**<F10> 97,500
5,000 Regal Cinemas, Inc.**<F10> 135,000
---------
330,000
---------
FINANCIAL SERVICES -- 3.5%*<F9>
5,000 Leasing Solutions, Inc.**<F10> 93,750
3,000 Charles Schwab Corporation 95,625
---------
189,375
---------
HEALTH CARE SERVICES & SUPPLIES -- 2.4%*<F9>
5,000 Premier Research Worldwide, Ltd.**<F10>(1)<F12> 82,500
3,000 SeaMED Corporation**<F10> 48,000
---------
130,500
---------
INSURANCE -- 5.5%*<F9>
4,000 IPC Holdings Limited 97,500
4,000 Mutual Risk Management Ltd. 145,000
3,500 Symons International Group, Inc.**<F10> 49,000
---------
291,500
---------
MISCELLANEOUS -- 1.0%*<F9>
3,500 Vivid Technologies, Inc.**<F10> 56,000
---------
OIL-DOMESTIC -- 6.7%*<F9>
3,000 Apache Corporation 100,500
3,000 Comstock Resources, Inc.**<F10> 25,875
3,000 Costilla Energy, Inc.**<F10> 43,500
6,000 Layne Christensen Company**<F10> 96,000
7,000 Plains Resources, Inc.**<F10> 92,750
---------
358,625
---------
OIL-INTERNATIONAL -- 1.0%*<F9>
3,000 Core Laboratories N.V.**<F10> 53,250
---------
OIL & GAS SERVICES -- 1.3%*<F9>
1,500 BJ Services Company** <F10> 71,812
---------
RESTAURANTS -- 3.0%*<F9>
5,000 Dave & Buster's, Inc.**<F10> 111,250
10,000 Taco Cabana**<F10> 46,250
---------
157,500
---------
RETAIL -- 2.4%*<F9>
4,000 dELiA*s Inc.**<F10> 74,000
3,000 Pier 1 Imports, Inc. 52,875
---------
126,875
---------
SEMICONDUCTORS -- 6.5%*<F9>
3,000 Advanced Technology Materials, Inc.**<F10> 51,750
1,000 Maxim Integrated Products, Inc.**<F10> 48,375
800 Novellus Systems, Inc.**<F10> 55,200
5,000 3Dlabs Inc., Ltd.**<F10> 117,500
3,000 Triquint Semiconductor, Inc.**<F10> 71,625
---------
344,450
---------
SHOES -- 1.8%*<F9>
2,700 Wolverine World Wide, Inc. 98,550
---------
SOFTWARE -- 0.8%*<F9>
3,500 Award Software International, Inc.**<F10> 40,250
---------
TELECOMMUNICATIONS -- 9.2%*<F9>
1,500 Ascend Communications, Inc.**<F10> 61,125
1,000 Cascade Communications Corp.**<F10> 26,375
1,000 CIENA Corporation**<F10> 28,437
1,000 COLT Telecom Group PLC ADR**<F10> 18,875
4,000 Harmonic Lightwaves, Inc.**<F10> 55,000
1,000 Newbridge Networks Corporation**<F10> 28,625
1,500 P-COM, Inc.**<F10> 39,000
2,000 QUALCOMM, Inc.**<F10> 112,750
2,500 Teledata Communication Ltd.**<F10> 45,000
7,000 Yurie Systems, Inc.**<F10> 74,375
---------
489,562
---------
TEXTILES & APPAREL -- 4.7%*<F9>
7,000 Farah, Inc.**<F10> 70,000
6,000 Synthetic Industries, Inc.**<F10> 106,500
2,000 WestPoint Stevens, Inc.**<F10> 76,250
---------
252,750
---------
TRANSPORTATION -- 1.6%*<F9>
3,500 Hub Group, Inc. - Class A**<F10> 87,500
---------
UTILITIES-TELEPHONE -- 1.0%*<F9>
500 Telecomunicacoes Brasileiras S/A-Telebras ADR 51,188
---------
TOTAL COMMON STOCKS (Cost $5,262,627) 4,871,793
---------
INVESTMENT UNIT TRUST -- 4.7%*<F9>
3,300 Standard and Poor's Depositary Receipts (1)<F12>
(Cost $251,163) $248,325
---------
MUTUAL FUNDS -- 3.0%*<F9>
2,800 Oppenheimer Capital 92,400
70,000 Portico Institutional Money Market Fund 70,000
---------
TOTAL MUTUAL FUNDS (Cost $169,540) 162,400
---------
PRINCIPAL
AMOUNT
---------
SHORT-TERM INVESTMENTS -- 4.9%*<F9>
Variable Rate Demand Notes -- 4.9%*<F9>
$153,128 Johnson Controls, Inc. 153,128
108,224 Wisconsin Electric Power Co. 108,224
---------
TOTAL SHORT-TERM INVESTMENTS (Cost $261,352) 261,352
---------
TOTAL INVESTMENTS (Cost $5,944,682) $5,543,870
=========
*<F9>Calculated as a percentage of net assets.
**<F10>Non-income producing security.
#<F11>Foreign security.
(1)<F12>All or a portion of the securities have been committed as collateral for
open short positions.
ROCKLAND GROWTH FUND
SCHEDULE OF SECURITIES SOLD SHORT -- MARCH 31, 1997 (UNAUDITED)
Shares Value
------ -----
5,000 Premier Research Worldwide, Ltd. $82,500
1,300 Standard and Poor's Depositary Receipts 97,825
---------
TOTAL SECURITIES SOLD SHORT (Proceeds $209,651) $180,325
=========
See notes to the financial statements.
ROCKLAND GROWTH FUND
NOTES TO THE FINANCIAL STATEMENTS -- MARCH 31, 1997 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Rockland Funds Trust (the "Trust") was organized on July 31, 1996, as a
Delaware business trust and is registered as an open-end management investment
company under the Investment Company Act of 1940 ("1940 Act"). The Trust
currently consists of one series, The Rockland Growth Fund (the "Fund"). The
investment objective of the Fund is to seek capital appreciation. In seeking its
investment objective of capital appreciation, the Fund will, under normal market
conditions, invest primarily in equity securities of domestic companies. The
Fund is structured for flexibility and risk reduction, but centered around
investment in high quality growth stocks with an emphasis on those companies
whose growth potential, in the opinion of the Fund's investment adviser,
Greenville Capital Management, Inc., has been overlooked by Wall Street
analysts. The Fund issued and sold 10,000 Institutional shares of its capital
stock at $10 per share on October 21, 1996. The Fund commenced operations on
December 2, 1996.
The costs incurred in connection with the organization, initial registration
and public offering of shares, aggregating $34,078, have been paid by the
Adviser. The Fund will reimburse the Adviser. These costs are being amortized
over the period of benefit, but not to exceed sixty months from the Fund's
commencement of operations.
The Fund has issued two classes of shares: Retail and Institutional. The
Retail shares are subject to a 0.25% 12b-1 fee and an initial sales charge
imposed at the time of purchase, in accordance with the Fund's prospectus. The
maximum sales charge is 3% of the offering price or 3.09% of the net asset
value. Each class of shares has identical rights and privileges except with
respect to 12b-1 fees paid by Retail shares and voting rights on matters
affecting a single class of shares.
The following is a summary of significant accounting policies consistently
followed by the Fund.
a) Investment Valuation - Common stocks, other equity-type securities, and
securities sold short that are listed on a security exchange or quoted on NASDAQ
are valued at the last quoted sales price on which such securities are primarily
traded. Common stocks, other equity-type securities, and securities sold short
which are listed on an exchange or the NASDAQ Stock Market but which are not
traded on the valuation date are valued at the mean between the current bid and
asked price. Options purchased or written by the Fund are valued at the average
of the current bid and asked prices. Mutual fund investments are valued at the
net asset value on the day the valuation is made. Other assets and securities
for which no quotations are readily available are valued at fair value as
determined in good faith by management in accordance with procedures approved by
the Board of Trustees. Debt securities (those with remaining maturities of 60
days or less) are valued at amortized cost, which approximates market value.
b) Transactions with Brokers for Short Sales - The Fund's receivable from
broker for proceeds on securities sold short is with one major security dealer.
The Fund does not require the broker to maintain collateral in support of the
receivable from broker for proceeds on securities sold short.
c) Federal Income Taxes - No provision for federal income taxes has been made
since the Fund intends to comply with the provisions of the Internal Revenue
Code applicable to regulated investment companies and intends to distribute
investment company net taxable income and net capital gains to shareholders.
d) Distributions to Shareholders - Dividends from net investment income are
declared and paid annually in December. Distributions of net realized capital
gains, if any, will be declared at least annually and distributed in December.
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 and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
f) Foreign Securities - Investing in securities of foreign companies and
foreign governments involves special risks and considerations not typically
associated with investing in U.S. companies and the U.S. government. These risks
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more volatile
than those of securities of comparable U.S. companies and the U.S. government.
g) Other - Investment and shareholder transactions are recorded no later than
the first business day after the trade date. The Fund determines the gain or
loss realized from investment transactions by comparing the original cost of the
security lot sold with the net sales proceeds. Dividend income is recognized on
the ex-dividend date or as soon as information is available to the Fund, and
interest income is recognized on an accrual basis. Generally accepted accounting
principles require that permanent financial reporting and tax differences be
reclassified to capital stock.
2. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest for the period December 2, 1996,
through March 31, 1997 were as follows:
$ SHARES
---- ------
RETAIL SHARES:
Shares sold $51,617 5,077
======= =======
INSTITUTIONAL SHARES:
Shares sold $5,981,409 588,564
Shares issued
to owners in
reinvestment
of dividends 2,510 246
-------- ---------
Total increase $5,983,919 588,810
========= ========
3. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of investments, excluding short-term
investments and short positions, by the Fund for the period December 2, 1996
through March 31, 1997, were $10,237,126 and $4,238,335, respectively.
At March 31, 1997, gross unrealized appreciation and depreciation of
investments for tax purposes were as follows:
Appreciation $158,842
(Depreciation) (595,351)
-------
Net depreciation
on investments $(436,509)
========
At March 31, 1997, the cost of investments for federal income tax purposes was
$5,980,379.
4. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Trust, on behalf of the Fund, has entered into an Investment Advisory
Agreement with Greenville Capital Management, Inc. Pursuant to its advisory
agreement with the Trust, the Investment Adviser is entitled to receive a fee,
calculated daily and payable monthly, at the annual rate of 1.00% as applied to
the Fund's daily net assets.
The Investment Adviser has voluntarily agreed to waive its management fee
and/or reimburse the operating expenses to the extent necessary to insure that
the total operating expenses do not exceed 2.00% and 1.75% of the Fund's average
daily net assets for the Retail class and Institutional class, respectively.
Firstar Trust Company, a subsidiary of Firstar Corporation, a publicly held
bank holding company, serves as custodian, transfer agent, administrator and
accounting services agent for the Fund.
5. SHORT POSITIONS
As a portfolio management strategy, the Fund may engage in short sales of
securities, which result in obligations of the Fund to make a future delivery of
a specific security. These obligations are subject to the risk that the
security's market price at the delivery date will exceed the amount of proceeds
initially received, and that the Fund may be required to purchase the security
at prevailing market prices (or deliver the security if owned by the Fund) and
thus realize a loss on the transaction. Obligations under short sales are
reported as liabilities and are adjusted to the current market value of the
security to be delivered. The Fund generally maintains deposits with brokers
approximating the market value of securities sold short.
6. DISTRIBUTION PLAN
The Fund has adopted a plan pursuant to Rule 12b-1 under the 1940 Act (the
"Plan"), which requires the Retail class to pay the Distributor a distribution
fee of up to 0.25% of its average daily net assets computed on an annual basis.
Under the terms of the Plan, the Distributor is authorized to, in turn, pay all
or a portion of this fee to any securities dealer, financial institution or any
other person who renders assistance in distributing or promoting the sale of
Retail class shares pursuant to a written agreement. To the extent such fee is
not paid to such persons, the Distributor may use the fee for its own
distribution expenses incurred in connection with the sale of the shares,
although it is the Distributor's current intention to pay out all or most of the
fee. The Fund made no payments pursuant to the Plan for the period ended March
31, 1997.
TRUSTEES
Mr. Charles S. Cruice
Mr. Richard H. Gould
Dr. Peter Utsinger
Mr. Robert D. Harrison
Mr. Richard W. Vague
OFFICERS
Mr. Charles S. Cruice, President
Mr. Richard H. Gould, Treasurer
Mr. Jeffrey Rugen, Secretary
INVESTMENT ADVISOR
Greenville Capital Management, Inc.
100 South Rockland Falls Road
Rockland, DE 19732
CUSTODIAN, ADMINISTRATOR,
TRANSFER AGENT
AND DIVIDEND-DISBURSING AGENT
Firstar Trust Company
Mutual Fund Services
Third Floor
615 East Michigan Street
Milwaukee, WI 53202
INDEPENDENT ACCOUNTANTS
KPMG Peat Marwick LLP
777 E. Wisconsin Avenue
Milwaukee, WI 53202
LEGAL COUNSEL
Godfrey & Kahn, S.C.
780 N. Water Street
Milwaukee, WI 53202
