(ROCKLAND LOGO)
ANNUAL REPORT
SEPTEMBER 30, 1997
THE ROCKLAND GROWTH FUND
RETAIL CLASS
INSTITUTIONAL CLASS
(ROCKLAND LOGO)
ANNUAL REPORT
November 21, 1997
Dear Fellow Shareholders,
We will use this fiscal year end letter to give you an up-to-date snapshot of
your Fund including useful information and color. Generally, the high growth
stocks that we invest in for you tend to do very well when the market is
running, but also give up ground during a pause or correction. Your Fund may be
more volatile than some other mutual funds because we tend to stay fully
invested, but over the long-term this has paid off with better performance. You
are investing with us so that you may own a portfolio of some of the fastest
growing companies in America and not because you want to hold cash. We feel as
strongly as we have all year that the holdings of your Fund are well positioned
to sustain rapid earnings growth.
Historically, the upcoming month of December is the best month of the year
for stocks. The reasoning behind this is that investor sentiment during the
holiday season is often very positive. In the month of January, small
capitalization stocks throughout history have outperformed the big blue chip
companies by a substantial margin of 5-6%. Although during the last two years
this "January Effect" has not occurred, we would expect the historical pattern
to return.
Each year mutual funds are required to pay out net capital gains to
shareholders. This year, despite very strong performance, the actual taxable
gains taken are modest at about $0.35 per share. At the end of December you
will see the net asset value of the Rockland Growth Fund drop by about $0.35 per
share and either be reinvested in more shares or paid out to you depending on
your election on your application. There will be no net dollar effect to your
portfolio holdings. If you would like to switch to reinvestment, please call
our Fund directly at 1-800-497-3933.
FUND STATISTICS FOR CURRENT HOLDINGS
Median EPS growth rate last quarter 61%
Median revenue growth last quarter 42%
Median market capitalization $406m
Median P/E on 1998 Street estimates 22-23x
Beating Wall Street estimates by 10%
We wish all of you the very best holiday season.
Sincerely,
/s/ Charles S. Cruice /s/ Richard H. Gould
Charles S. Cruice Richard H. Gould CFA CMT
GREENVILLE CAPITAL MANAGEMENT, INC.
Presents
THE ROCKLAND GROWTH FUND
a Series of
The Rockland Funds Trust o P. O. Box 701 o Milwaukee, Wisconsin 53201-0701
o 1-800-497-3933
Rockland Growth Fund --
date Institutional S&P 500 NASDAQ Composite
----- ------------------------ ------- -----------------
12/2/96 $10,000 $10,000 $10,000
3/31/97 $9,004 $10,065 $9,459
6/30/97 $11,287 $11,822 $11,183
9/30/97 $14,453 $12,707 $13,084
Rockland Growth Fund --
date Retail Load Retail No Load S&P 500 NASDAQ Composite
----- ------------ ----------------------- -------- -----------------
12/2/96 $10,000 $10,000 $10,000 $10,000
3/31/97 $8,711 $8,980 $10,065 $9,459
6/30/97 $10,922 $11,260 $11,822 $11,183
9/30/97 $13,986 $14,420 $12,707 $13,084
FOR THE PERIOD ENDED SEPTEMBER 30, 1997
CUMULATIVE SINCE
COMMENCEMENT OF OPERATIONS
--------------------------
Rockland Growth Fund -- Institutional 44.5%
Rockland Growth Fund -- Retail No Load 44.2%
Rockland Growth Fund -- Retail Load 39.9%
S&P 500 27.1%
NASDAQ Composite 30.8%
The Standard & Poor's 500 Index (S&P 500) is a capital-weighted index,
representing the aggregate market value of the common equity of 500 stocks
primarily traded on the New York Stock Exchange. The NASDAQ Composite Index is
a broad-based capitalization-weighted index of all NASDAQ stocks. This chart
assumes an initial gross investment of $10,000 made on 12/2/96 (commencement of
operations). Returns shown include the reinvestment of all dividends. Past
performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
ROCKLAND GROWTH FUND
INDEPENDENT AUDITOR'S REPORT
The Shareholders and Board of Trustees
The Rockland Funds Trust
We have audited the accompanying statement of assets and liabilities of
Rockland Growth Fund (the "Fund"), including the schedule of investments, as of
September 30, 1997, and the related statement of operations, statement of
changes in net assets and financial highlights, for the period from December 2,
1996 (commencement of investment operations) through September 30, 1997. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Fund as of September 30, 1997 and the results of its operations, changes in its
net assets and the financial highlights for the period referred to above, in
conformity with generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
October 15, 1997
ROCKLAND GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 1997
ASSETS:
Investments, at value (cost $8,854,503) $11,986,211
Cash 208,459
Receivable for investments sold 204,421
Receivable for capital shares sold 126,256
Dividends and interest receivable 173
Receivable from Advisor 16,764
Organizational expenses, net of
accumulated amortization 28,454
Other assets 10,355
-----------
Total Assets 12,581,093
-----------
LIABILITIES:
Payable for investments purchased 751,085
Accrued expenses and other liabilities 49,060
-----------
Total Liabilities 800,145
-----------
NET ASSETS $11,780,948
===========
NET ASSETS CONSIST OF:
Capital stock $8,655,811
Accumulated undistributed net realized loss
on investments sold (6,571)
Net unrealized appreciation on investments 3,131,708
-----------
Total Net Assets $11,780,948
===========
RETAIL CLASS:
Net assets $921,991
Shares of beneficial interest outstanding
(unlimited shares of $.001 par value authorized) 63,949
Net asset value and redemption price per share $14.42
======
Maximum offering price per share $14.87
======
INSTITUTIONAL CLASS:
Net assets $10,858,957
Shares of beneficial interest outstanding
(unlimited shares of $.001 par value authorized) 752,698
Net asset value, redemption price and
offering price per share $14.43
======
See notes to the financial statements.
ROCKLAND GROWTH FUND
STATEMENT OF OPERATIONS -- DECEMBER 2, 1996 (1)<F1> THROUGH SEPTEMBER 30, 1997
INVESTMENT INCOME:
Dividend income (net of foreign taxes withheld of $68) $19,786
Interest income 14,476
----------
Total investment income 34,262
----------
EXPENSES:
Investment advisory fee 53,871
Administration fee 31,484
Shareholder servicing and accounting costs 47,379
Custody fees 13,132
Federal and state registration 15,202
Professional fees 22,569
Reports to shareholders 8,275
Directors' fees and expenses 4,489
Amortization of organizational expenses 5,624
Distribution expenses -- Retail Class 449
Other 12,705
----------
Total operating expenses before reimbursement 215,179
Less: Reimbursement from Adviser (120,419)
----------
Total expenses 94,760
----------
NET INVESTMENT LOSS (60,498)
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain on investments sold 54,223
Change in unrealized appreciation on investments 3,131,708
----------
Net realized and unrealized gain on investments 3,185,931
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,125,433
==========
(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
SEPTEMBER 30, 1997
OPERATIONS:
Net investment loss $(60,498)
Net realized gain on investments sold 54,223
Change in unrealized appreciation on investments 3,131,708
-----------
Net increase in net assets resulting from operations 3,125,433
-----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 8,838,306
Shares issued to holders in reinvestment of dividends 2,509
Cost of shares redeemed (182,299)
-----------
Net increase in net assets resulting
from capital share transactions 8,658,516
-----------
DISTRIBUTIONS TO SERIES INSTITUTIONAL CLASS
SHAREHOLDERS IN EXCESS OF NET INVESTMENT INCOME (3,001)
-----------
NET INCREASE IN NET ASSETS 11,780,948
NET ASSETS:
Beginning of period 0
-----------
End of period $11,780,948
===========
(1)<F2>Commencement of operations.
See notes to the financial statements.
ROCKLAND GROWTH FUND
FINANCIAL HIGHLIGHTS -- DECEMBER 2, 1996 (1)<F3> THROUGH SEPTEMBER 30, 1997
RETAIL INSTITUTIONAL
CLASS CLASS
------- -------------
Per Share Data:
Net asset value, beginning of period $10.00 $10.00
------ ------
Income from investment operations:
Net investment loss (7)<F9> (0.15) (0.11)
Net realized and unrealized
gains on investments 4.57 4.56
------ ------
Total from investment operations 4.42 4.45
------ ------
Less distributions:
Dividends in excess of net investment income -- (0.02)
------ ------
Net asset value, end of period $14.42 $14.43
====== ======
Total return (2)<F4>(3)<F5> 44.20% 44.53%
Supplemental data and ratios:
Net assets, end of period $921,991 $10,858,957
Ratio of operating expenses
to average net assets (4)<F6>(5)<F7> 2.00% 1.75%
Ratio of net investment loss to
average net assets (4)<F6>(5)<F7> (1.36)% (1.11)%
Portfolio turnover rate (6)<F8> 204.05% 204.05%
Average commission rate paid (6)<F8> $0.0509 $0.0509
(1)<F3>Commencement of operations.
(2)<F4>Not annualized for the period December 2, 1996 through
September 30, 1997.
(3)<F5>The total return does not reflect the 3% front-end sales charge for the
Retail Class.
(4)<F6>Annualized for the period December 2, 1996 through September 30, 1997.
(5)<F7>Without expense reimbursements of $120,419 for the period
December 2, 1996 through September 30, 1997, the ratio of operating expenses
to average net assets would have been 4.23% and 3.98% for the Retail and
Institutional classes respectively, and the ratio of net investment loss to
average net assets would have been (3.60)% and (3.35)% for the Retail and
Institutional classes respectively.
(6)<F8>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.
(7)<F9>Net investment loss per share represents net investment loss divided by
the monthly average shares of beneficial interest outstanding throughout the
period December 2, 1996 through September 30, 1997.
See notes to the financial statements.
ROCKLAND GROWTH FUND
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 1997
SHARES VALUE
------ -----
COMMON STOCKS -- 101.7%
BUSINESS SERVICES -- 9.3%
7,000 AHL Services, Inc.*<F10> $127,750
3,000 Forrester Research, Inc.*<F10> 81,375
12,000 Globe Business Resources, Inc.*<F10> 235,500
4,000 Hagler Bailly, Inc.*<F10> 101,500
5,000 Mail-Well, Inc.*<F10> 135,625
3,000 Metzler Group, Inc.*<F10> 120,375
6,000 Personnel Group of America, Inc.*<F10> 205,500
5,000 Quipp, Inc.*<F10> 85,625
-----------
1,093,250
-----------
COMPUTERS -- 5.4%
12,000 Advanced Digital Information Corporation*<F10> 244,500
5,000 Apex PC Solutions, Inc.*<F10> 189,375
7,000 Procom Technology, Inc.*<F10> 110,250
1,500 STB Systems,Inc.*<F10> 54,750
1,000 Splash Technology Holdings, Inc.*<F10> 39,125
-----------
638,000
-----------
CONSUMER PRODUCTS -- 1.4%
6,000 First Years Inc. 170,250
-----------
DISTRIBUTION -- 6.1%
11,000 CHS Electronics, Inc.*<F10> 301,125
9,000 CellStar Corporation*<F10> 418,500
-----------
719,625
-----------
DRUGS -- 2.2%
10,000 ChiRex Inc.*<F10> 255,000
-----------
ELECTRONICS -- 12.5%
6,000 ADFlex Solutions, Inc.*<F10> 146,250
8,000 AFC Cable Systems, Inc.*<F10> 284,350
3,000 Checkpoint Systems, Inc.*<F10> 43,875
6,000 Encore Wire Corporation*<F10> 192,750
5,000 FARO Technologies, Inc.*<F10> 81,875
5,000 Flextronics International Ltd.*<F10> 235,000
15,000 Meade Instruments Corp.*<F10> 144,375
7,000 Nam Tai Electronics, Inc. 152,250
3,000 SCI Systems, Inc.*<F10> 148,688
2,500 Vivid Technologies, Inc.*<F10> 38,750
-----------
1,468,163
-----------
ENTERTAINMENT & LEISURE -- 3.6%
4,000 Quintel Entertainment, Inc.*<F10> 46,000
5,000 Regal Cinemas, Inc.*<F10> 134,375
9,000 United Video Satellite Group, Inc.*<F10> 249,750
-----------
430,125
-----------
FINANCIAL SERVICES -- 4.1%
7,000 E*TRADE Group, Inc.*<F10> 329,000
4,500 Charles Schwab Corporation 160,875
-----------
489,875
-----------
HEALTH CARE -- 2.6%
8,000 Diagnostic Health Services, Inc.*<F10> 120,250
3,000 Imnet Systems, Inc.*<F10> 76,001
6,000 SeaMED Corporation*<F10> 111,750
-----------
308,001
-----------
INTERNET -- 3.7%
3,000 America Online, Inc.*<F10> 226,312
3,000 Excite, Inc.*<F10> 85,406
500 Network Solutions, Inc. - Class A*<F10> 10,875
2,250 Yahoo! Inc.*<F10> 112,781
-----------
435,374
-----------
OIL & GAS SERVICES -- 10.5%
5,000 American Eco Corporation*<F10> 65,000
3,500 BJ Services Company*<F10> 259,875
2,000 Diamond Offshore Drilling, Inc. 110,375
8,000 Falcon Drilling Company, Inc.*<F10> 282,500
3,000 Friede Goldman International Inc.*<F10> 180,000
2,000 Newpark Resources, Inc.*<F10> 78,165
8,000 Noble Drilling Corporation*<F10> 258,000
-----------
1,233,915
-----------
POLLUTION CONTROL -- 0.3%
2,000 Layne Christensen Company*<F10> 42,000
-----------
RESTAURANTS -- 1.8%
7,500 Dave & Buster's, Inc.*<F10> 186,562
5,000 Taco Cabana, Inc.*<F10> 27,500
-----------
214,062
-----------
RETAIL -- 1.5%
3,000 dELiA*s Inc.*<F10> 67,125
3,000 800-JR CIGAR, Inc.*<F10> 105,000
-----------
172,125
-----------
SEMICONDUCTORS -- 7.3%
3,000 Ade Corporation*<F10> 120,375
2,000 Maxim Integrated Products, Inc.*<F10> 142,875
6,000 PMC-Sierra, Inc.*<F10> 153,000
5,000 Quality Semiconductor, Inc.*<F10> 66,250
2,000 3Dlabs Inc., Ltd.*<F10> 64,500
10,000 TranSwitch Corporation*<F10> 113,850
4,000 Vitesse Semiconductor Corporation*<F10> 198,250
-----------
859,100
-----------
SOFTWARE -- 7.9%
12,000 Ansoft Corporation*<F10> 139,500
5,000 Melita International Corporation*<F10> 58,750
6,000 Peregrine Systems, Inc.*<F10> 106,500
7,000 Peritus Software Services, Inc.*<F10> 179,375
2,000 Pervasive Software Inc.*<F10> 23,000
3,000 Sanchez Computer Associates, Inc.*<F10> 47,625
6,000 Summit Design, Inc.*<F10> 106,875
6,000 Systems & Computer Technology Corporation*<F10> 270,375
-----------
932,000
-----------
TELECOMMUNICATIONS -- 17.1%
12,000 NACT Telecommunications, Inc.*<F10> 189,750
3,000 Newbridge Networks Corporation*<F10> 179,625
1,500 Northern Telecom Limited 156,458
5,000 Orckit Communications Ltd.*<F10> 90,000
6,000 Positron Fiber Systems Corporation*<F10> 61,875
3,000 Spectrian Corporation*<F10> 192,375
7,000 Teledata Communications Ltd.*<F10> 315,875
3,000 Tellabs, Inc.*<F10> 154,500
5,000 World Access, Inc.*<F10> 162,500
14,000 Yurie Systems, Inc.*<F10> 507,500
-----------
2,010,458
-----------
TEXTILES & APPAREL -- 2.8%
3,500 Farah, Inc.*<F10> 24,063
6,000 Synthetic Industries, Inc.*<F10> 174,000
2,000 WestPoint Stevens, Inc.*<F10> 82,500
2,000 Wolverine World Wide, Inc. 50,500
-----------
331,063
-----------
TRANSPORTATION -- 1.6%
1,800 Hub Group, Inc. - Class A*<F10> 66,825
6,000 Kitty Hawk, Inc.*<F10> 117,000
-----------
183,825
-----------
TOTAL INVESTMENTS -- 101.7%
(COST OF $8,854,503) 11,986,211
Liabilities, Less Other Assets -- (1.7%) (205,263)
-----------
TOTAL NET ASSETS -- 100.0% $11,780,948
===========
*<F10>Non-income producing security.
See notes to the financial statements.
ROCKLAND GROWTH FUND
NOTES TO THE FINANCIAL STATEMENTS -- SEPTEMBER 30, 1997
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) 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 all of its taxable net income as well as any net
realized gains to its shareholders. Therefore, no federal income tax provision
is required. Generally accepted accounting principles require that permanent
differences between financial reporting and tax reporting be reclassified
between various components of net assets. On the statement of assets and
liabilities, as a result of permanent book-to-tax differences, accumulated
undistributed net investment income has been increased and capital stock has
been decreased by an equal amount.
Net investment income and realized gains and losses for federal income tax
purposes may differ from that reported on the financial statements because of
temporary book and tax basis differences. Distributions from net realized gains
for book purposes may include short-term capital gains which are included as
ordinary income to shareholders for tax purposes. Temporary differences are
primarily the result of wash sales treatment for tax reporting purposes.
During the period, $54,223 of net short-term gains recognized by the Fund
were used as an offset against the net operating loss for tax purposes, and
thus, were reclassified from net investment loss to accumulated net realized
gains.
c) 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.
On December 31, 1996, a dividend of $3,001 was paid to Institutional
shareholders of record on December 30, 1996. There were no Retail shareholders
as of the record date.
d) 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.
e) 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.
f) Other - Investment and shareholder transactions are recorded on 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 September 30, 1997 were as follows:
$ SHARES
--- ------
RETAIL SHARES:
Shares sold $860,049 70,332
Shares redeemed (86,980) (6,383)
---------- -------
Net increase $773,069 63,949
========== =======
INSTITUTIONAL SHARES:
Shares sold $7,978,257 762,190
Shares issued to owners in
reinvestment of dividends 2,509 246
Shares redeemed (95,319) (9,738)
---------- -------
Net increase $7,885,447 752,698
========== =======
Total increase $8,658,516 816,647
========== =======
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 September 30, 1997, were $21,132,099 and $12,328,598, respectively.
At September 30, 1997, gross unrealized appreciation and depreciation of
investments for tax purposes were as follows:
Appreciation $3,318,069
(Depreciation) (219,356)
----------
Net appreciation on investments $3,098,713
==========
At September 30, 1997, the cost of investments for federal income tax purposes
was $8,887,498.
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 has made minimal payments pursuant to the Plan for the period
ended September 30, 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
