SEMI-ANNUAL REPORT
MARCH 31, 1998
THE ROCKLAND GROWTH FUND
RETAIL CLASS
INSTITUTIONAL CLASS
ROCKLAND GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 1998 (UNAUDITED)
ASSETS:
Investments, at value (cost $10,110,496) $12,910,790
Receivable for investments sold 378,887
Receivable for capital shares sold 43,853
Dividends and interest receivable 764
Organizational expenses, net of accumulated amortization 24,996
Other assets 21,202
-----------
Total Assets 13,380,492
-----------
LIABILITIES:
Payable for investments purchased 443,778
Payable to Adviser 7,087
Accrued expenses and other liabilities 54,353
-----------
Total Liabilities 505,218
-----------
NET ASSETS $12,875,274
-----------
-----------
NET ASSETS CONSIST OF:
Capital stock $10,605,341
Accumulated undistributed net investment loss (94,016)
Accumulated undistributed net realized
loss on investments sold (436,345)
Net unrealized appreciation (depreciation) on investments 2,800,294
-----------
Total Net Assets $12,875,274
-----------
-----------
RETAIL CLASS:
Net assets $ 1,393,285
Shares of beneficial interest outstanding
(unlimited shares of $.001 par value authorized) 105,168
Net asset value and redemption price per share $ 13.25
-----------
-----------
Maximum offering price per share $ 13.66
-----------
-----------
INSTITUTIONAL CLASS:
Net assets $11,481,989
Shares of beneficial interest outstanding
(unlimited shares of $.001 par value authorized) 864,762
Net asset value, redemption price and
offering price per share $ 13.28
-----------
-----------
See notes to the financial statements.
STATEMENT OF OPERATIONS -- SIX MONTHS ENDED MARCH 31, 1998 (UNAUDITED)
INVESTMENT INCOME:
Dividend income (net of foreign taxes withheld of $34) $ 1,417
Interest income 3,868
-----------
Total investment income 5,285
-----------
EXPENSES:
Investment advisory fee 56,938
Administration fee 21,203
Shareholder servicing and accounting costs 27,245
Custody fees 10,192
Federal and state registration 9,188
Professional fees 13,650
Reports to shareholders 2,730
Directors' fees and expenses 1,456
Amortization of organizational expenses 3,458
Distribution expenses -- Retail Class 1,360
Other 7,007
-----------
Total operating expenses before reimbursement 154,427
Less: Reimbursement from Adviser (53,426)
-----------
Total expenses 101,001
-----------
NET INVESTMENT LOSS (95,716)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) on:
Long transactions (154,755)
Short transactions 7,005
Change in unrealized appreciation on investments (331,414)
-----------
Net realized and unrealized loss on investments (479,164)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (574,880)
-----------
-----------
See notes to the financial statements.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
Six Months December 2, 1996(1) <F1>
ended through
March 31, 1998 September 30, 1997
_____________ _________________
(Unaudited)
<S> <C> <C>
OPERATIONS:
Net investment loss $ (95,716) $ (60,498)
Net realized gain (loss) on:
Long transactions (154,755) 54,223
Short transactions 7,005 -
Change in unrealized appreciation on investments (331,414) 3,131,708
------------ ------------
Net increase (decrease) in net assets resulting from operations (574,880) 3,125,433
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 1,958,163 8,838,306
Shares issued to holders in reinvestment of dividends 270,117 2,509
Cost of shares redeemed (227,050) (182,299)
------------ ------------
Net increase in net assets resulting from capital share transactions 1,951,230 8,658,516
------------ ------------
DISTRIBUTIONS TO SERIES RETAIL
SHAREHOLDERS FROM NET REALIZED GAINS (26,286) -
------------ ------------
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREHOLDERS:
In excess of net investment income - (3,001)
From net realized gains (255,738) -
------------ ------------
(255,738) (3,001)
------------ ------------
NET INCREASE IN NET ASSETS 1,094,326 11,780,948
NET ASSETS:
Beginning of period 11,780,948 0
------------ ------------
End of period $12,875,274 $11,780,948
------------ ------------
------------ ------------
(1) <F1> Commencement of operations.
</TABLE>
See notes to the financial statements.
<TABLE>
FINANCIAL HIGHLIGHTS
Six Months December 2, 1996(1)<F2>
ended through
March 31, 1998 September 30, 1997
-------------------------- -------------------------
(Unaudited)
Retail Institutional Retail Institutional
Class Class Class Class
------- ------------ -------- -----------
<S> <C> <C> <C> <C>
Per Share Data:
Net asset value, beginning of period $ 14.42 $ 14.43 $ 10.00 $ 10.00
-------- -------- -------- --------
Income from investment operations:
Net investment loss (7)<F8> (0.12) (0.10) (0.15) (0.11)
Net realized and unrealized
losses on investments (0.73) (0.73) 4.57 4.56
-------- -------- -------- --------
Total from investment operations (0.85) (0.83) 4.42 4.45
-------- -------- -------- --------
Less distributions:
Dividends in excess of net investment income -- -- -- (0.02)
Distributions from net realized gains (0.32) (0.32) -- --
-------- -------- -------- --------
Total distributions (0.32) (0.32) -- (0.02)
-------- -------- -------- --------
Net asset value, end of period $ 13.25 $ 13.28 $ 14.42 $ 14.43
-------- -------- -------- --------
-------- -------- -------- --------
Total return (2)<F3>(3)<F4> (5.62%) (5.48%) 44.20% 44.53%
Supplemental data and ratios:
Net assets, end of period $1,393,285 $11,481,989 $921,991 $10,858,957
Ratio of operating expenses to
average net assets (4)<F5>(5)<F6> 2.00% 1.75% 2.00% 1.75%
Ratio of net investment loss to
average net assets (4)<F5>(5)<F6> (1.91%) (1.66%) (1.36%) (1.11%)
Portfolio turnover rate (6)<F7> 91.10% 91.10% 204.05% 204.05%
Average commission rate paid (6)<F7> $0.0510 $0.0510 $0.0509 $0.0509
(1)<F2> Commencement of operations.
(2)<F3> Not annualized for the six months ended March 31, 1998 or the period
December 2, 1996 through September 30, 1997.
(3)<F4> The total return does not reflect the 3% front-end sales charge for
the Retail Class.
(4)<F5> Annualized for the six months ended March 31, 1998 and the period
December 2, 1996 through September 30, 1997.
(5)<F6> Without expense reimbursements of $53,426 and $120,419 for the six
months ended March 31, 1998 and the period December 2, 1996 through September
30, 1997, respectively, the ratio of operating expenses to average net assets
would have been 2.94% and 4.23% for the Retail class and 2.69% and 3.98% for the
Institutional class, respectively. The ratio of net investment loss to average
net assets would have been (2.85%) and (3.60%) for the Retail class and (2.60%)
and (3.35%) for the Institutional class, respectively.
(6)<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.
(7)<F8> Net investment loss per share represents net investment loss divided
by the monthly average shares of beneficial interest outstanding throughout the
six months ended March 31, 1998 and the period December 2, 1996 through
September 30, 1997.
See notes to the financial statements.
SCHEDULE OF INVESTMENTS -- MARCH 31, 1998 (UNAUDITED)
SHARES VALUE
------ -------
COMMON STOCKS -- 99.3%
BUSINESS SERVICES -- 8.9%
9,000 AHL Services, Inc. *<F9> $ 293,625
13,000 Group Maintenance America Corp. *<F9> 220,187
8,000 Mail-Well, Inc. *<F9> 303,000
3,000 Metzler Group, Inc. *<F9> 149,250
8,000 Personnel Group of America, Inc. *<F9> 182,000
-----------
1,148,062
-----------
COMPUTERS -- 10.7%
9,000 Apex PC Solutions, Inc. *<F9> 241,875
6,000 Aris Corporation *<F9> 178,500
2,000 AXENT Technologies, Inc. *<F9> 61,000
11,000 Cybex Computer Products Corporation *<F9> 358,187
8,000 Equinox Systems, Inc. *<F9> 171,000
12,000 NeoMagic Corporation *<F9> 226,500
16,000 Procom Technology, Inc. *<F9> 134,000
-----------
1,371,062
-----------
CONSUMER PRODUCTS -- 1.9%
7,000 First Years Inc. 245,875
-----------
DISTRIBUTION -- 0.7%
4,500 CHS Electronics, Inc. *<F9> 84,375
-----------
ELECTRONICS -- 7.3%
8,000 AFC Cable Systems, Inc. *<F9> 311,000
15,000 Checkpoint Systems, Inc. *<F9> 318,750
6,000 Encore Wire Corporation *<F9> 194,250
10,000 OSI Systems, Inc. *<F9> 116,250
-----------
940,250
-----------
ENTERTAINMENT & LEISURE -- 3.4%
2,000 Regal Cinemas, Inc. *<F9> 60,000
9,000 United Video Satellite Group, Inc. *<F9> 382,500
-----------
442,500
-----------
FINANCIAL SERVICES -- 1.0%
5,000 E*TRADE Group, Inc. *<F9> 124,687
-----------
FOOD, BEVERAGES & TOBACCO -- 2.3%
3,000 Beringer Wine Estates Holdings, Inc. *<F9> 154,875
10,000 Gardenburger, Inc. *<F9> 136,250
-----------
291,125
-----------
HEALTH CARE -- 3.6%
9,000 AmeriPath, Inc. *<F9> 165,937
5,000 Assisted Living Concepts, Inc. *<F9> 108,125
6,000 Medirisk, Inc. *<F9> 127,500
3,000 SteriGenics International, Inc. *<F9> 66,000
-----------
467,562
-----------
INTERNET -- 8.0%
2,000 America Online, Inc. *<F9> 136,625
3,000 CDnow, Inc. *<F9> 72,000
3,000 Excite, Inc. *<F9> 152,812
5,000 Infoseek Corporation *<F9> 90,313
2,000 Lycos, Inc. *<F9> 88,500
7,000 ONSALE, Inc. *<F9> 217,000
3,000 Yahoo! Inc. *<F9> 277,313
-----------
1,034,563
-----------
OIL & GAS SERVICES -- 2.0%
7,000 BJ Services Company *<F9> 255,062
-----------
RESTAURANTS -- 3.8%
7,500 Dave & Buster's, Inc. *<F9> 203,437
6,000 Logan's Roadhouse, Inc. *<F9> 135,750
3,000 Papa John's International, Inc. *<F9> 115,125
5,000 Taco Cabana, Inc. *<F9> 34,375
-----------
488,687
-----------
RETAIL -- 3.9%
8,000 dELiA*s Inc. *<F9> 192,000
3,000 Just For Feet, Inc. *<F9> 61,125
11,000 White Cap Industries, Inc. *<F9> 253,000
-----------
506,125
-----------
SEMICONDUCTORS -- 7.4%
7,000 Maxim Integrated Products, Inc. *<F9> 255,063
7,000 PMC-Sierra, Inc. *<F9> 266,000
2,000 QLogic Corporation *<F9> 71,000
15,000 TranSwitch Corporation *<F9> 173,438
4,000 Vitesse Semiconductor Corporation *<F9> 188,625
-----------
954,126
-----------
SOFTWARE -- 23.4%
10,000 Acclaim Entertainment, Inc. *<F9> 66,250
10,000 Alydaar Software Corporation *<F9> 175,625
15,000 Ansoft Corporation *<F9> 210,937
3,000 BEA Systems, Inc. *<F9> 84,375
8,000 Best Software, Inc. *<F9> 121,000
8,000 Check Point Software Technologies Ltd. *<F9> 365,500
12,000 Concord Communications, Inc. *<F9> 313,500
12,000 Datastream Systems, Inc. *<F9> 265,500
7,000 Eidos PLC -- ADR *<F9> 132,125
5,000 Information Management Resources, Inc. *<F9> 294,375
5,000 Legato Systems, Inc. *<F9> 296,875
8,000 Mercury Interactive Corporation *<F9> 292,000
1,000 Rogue Wave Software, Inc. *<F9> 15,063
3,000 Sanchez Computer Associates, Inc. *<F9> 61,688
8,000 Summit Design, Inc. *<F9> 119,000
7,000 3Dfx Interactive, Inc. *<F9> 197,750
-----------
3,011,563
-----------
TELECOMMUNICATIONS -- 8.6%
6,000 Brightpoint, Inc. *<F9> 103,125
2,000 Coherent Communications Systems Corporation *<F9> 92,250
14,000 NACT Telecommunications, Inc. *<F9> 309,750
11,000 Orckit Communications Ltd. *<F9> 202,813
5,000 Positron Fiber Systems Corporation *<F9> 38,438
15,000 Yurie Systems, Inc. *<F9> 362,813
-----------
1,109,189
-----------
TEXTILES & APPAREL -- 2.4%
6,000 WestPoint Stevens, Inc. *<F9> 171,750
5,000 Wolverine World Wide, Inc. 141,250
-----------
313,000
-----------
TOTAL COMMON STOCKS (Cost $9,987,519) 12,787,813
-----------
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 1.0%
VARIABLE RATE DEMAND NOTES #<F10> -- 1.0%
$69,927 Johnson Controls, Inc., 5.2925% 69,927
53,050 Pitney Bowes, Inc., 5.2925% 53,050
-----------
TOTAL SHORT-TERM INVESTMENTS (Cost $122,977) 122,977
-----------
TOTAL INVESTMENTS -- 100.3% (COST OF $10,110,496) 12,910,790
Liabilities, Less Other Assets -- (0.3%) (35,516)
-----------
TOTAL NET ASSETS -- 100.0% $12,875,274
-----------
-----------
*<F9> Non-income producing security.
#<F10> Variable rate demand notes are considered short-term
obligations and are payable on demand.Interest rates change
periodically on specified dates. The rates listed are as of
March 31, 1998.
See notes to the financial statements.
NOTES TO THE FINANCIAL STATEMENTS -- MARCH 31, 1998 (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 has reimbursed 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, ended September 30, 1997, $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 six months ending
March 31, 1998 were as follows:
$ SHARES
------ -------
RETAIL SHARES:
Shares sold $ 528,542 40,530
Shares issued to holders in
reinvestment of dividends 24,156 2,074
Shares redeemed (15,706) (1,385)
----------- ----------
Net increase $ 536,992 41,219
-----------
-----------
SHARES OUTSTANDING:
Beginning of period 63,949
----------
End of period 105,168
----------
----------
INSTITUTIONAL SHARES:
Shares sold $1,429,621 113,480
Shares issued to holders in
reinvestment of dividends 245,961 21,094
Shares redeemed (261,344) (22,510)
----------- ----------
Net increase $1,414,238 112,064
-----------
-----------
SHARES OUTSTANDING:
Beginning of period 752,698
----------
End of period 864,762
----------
----------
TOTAL INCREASE $1,951,230 969,930
----------- ----------
----------- ----------
3. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of investments, excluding short-term
investments and short positions, by the Fund for the six months ended March 31,
1998, were $11,789,881 and $10,502,111, respectively.
At March 31, 1998, gross unrealized appreciation and depreciation of
investments for tax purposes were as follows:
Appreciation $2,936,509
(Depreciation) (159,373)
-----------
Net appreciation on investments $2,777,136
-----------
-----------
At March 31, 1998, the cost of investments for federal income tax purposes
was $10,133,654.
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 paid $984 pursuant to the Plan for the six months ended march
31, 1998.
TRUSTEES
Mr. Charles Cruice
Mr. Richard Gould
Dr. Peter Utsinger
Mr. Robert Harrison
Mr. Richard Vague
OFFICERS
Mr. Charles Cruice, President
Mr. Richard 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
</TABLE>
