ANNUAL REPORT
SEPTEMBER 30, 2000
THE ROCKLAND GROWTH FUND
RETAIL CLASS (RKGBX)
INSTITUTIONAL CLASS (RKGRX)
ANNUAL REPORT
November 22, 2000
Dear Fellow Shareholders,
The capital gains distributions for the fiscal year ending September 30, 2000
will be paid out on Tuesday, December 5, for shareholders on record as of
December 4. Our best estimate calculates the distribution to be approximately
$5.50 per share and composed primarily of short-term gains. Shareholders
wishing to add to their taxable investments should invest on or after December
5, as I will. Given that your return for the fiscal year was 108.14%, the
after-tax return for your fund remains very good. Please refer to the quarterly
shareholder newsletters for further discussion of the Fund's performance.
We wish you the very best holiday season.
Sincerely yours,
/s/Richard H. Gould
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 Russell 2000
---- ------------- ------- ---------------- ------------
12/2/96 $10,000 $10,000 $10,000 $10,000
3/31/97 $9,004 $10,065 $9,459 $9,731
9/30/97 $14,452 $12,707 $13,084 $12,992
3/31/98 $13,661 $14,896 $14,265 $13,820
9/30/98 $11,532 $13,856 $13,179 $10,521
3/31/99 $16,377 $17,644 $19,221 $11,587
9/30/99 $19,897 $17,710 $21,476 $12,536
3/31/00 $40,269 $20,811 $35,796 $15,921
9/30/00 $41,411 $20,061 $28,774 $15,496
Rockland Growth Rockland Growth Fund NASDAQ Russell
Date Fund -- Retail Load -- Retail No Load S&P 500 Composite 2000
---- ------------------- -------------- ------- --------- ----
12/2/96 $10,000 $10,000 $10,000 $10,000 $10,000
3/31/97 $8,711 $8,980 $10,065 $9,459 $9,731
9/30/97 $13,987 $14,420 $12,707 $13,084 $12,992
3/31/98 $13,200 $13,609 $14,896 $14,265 $13,820
9/30/98 $11,129 $11,473 $13,856 $13,179 $10,521
3/31/99 $15,792 $16,281 $17,644 $19,221 $11,587
9/30/99 $19,181 $19,775 $17,710 $21,476 $12,536
3/31/00 $38,793 $39,994 $20,811 $35,796 $15,921
9/30/00 $39,853 $41,087 $20,061 $28,774 $15,496
FOR THE PERIOD ENDED SEPTEMBER 30, 2000
ANNUALIZED SINCE
ONE YEAR COMMENCEMENT OF OPERATIONS
-------- --------------------------
Rockland Growth Fund -- Institutional 108.14% 44.88%
Rockland Growth Fund -- Retail No Load 107.76% 44.57%
Rockland Growth Fund -- Retail Load 101.48% 43.43%
S&P 500 13.28% 19.92%
NASDAQ Composite 33.99% 31.75%
Russell 2000 23.61% 12.11%
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. The Russell
2000 is an unmanaged index of 2,000 stocks weighted by market capitalization.
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
STATEMENT OF ASSETS AND LIABILITIES -- SEPTEMBER 30, 2000
ASSETS:
Investments, at value (cost $57,189,389) $74,146,159
Receivable for investments sold 3,524,749
Receivable for capital shares sold 175,277
Dividends and interest receivable 9,397
Organizational expenses, net of accumulated amortization 7,630
Other assets 15,158
-----------
Total Assets 77,878,370
-----------
LIABILITIES:
Payable for investments purchased 2,482,704
Capital shares repurchased 14,552
Payable to Adviser 61,023
Accrued expenses and other liabilities 159,943
-----------
Total Liabilities 2,718,222
-----------
NET ASSETS $75,160,148
-----------
-----------
NET ASSETS CONSIST OF:
Capital stock $45,178,918
Accumulated undistributed net realized
gain on investments sold 13,024,460
Net unrealized appreciation on investments 16,956,770
-----------
Total Net Assets $75,160,148
-----------
-----------
RETAIL CLASS:
Net Assets $ 5,576,437
Shares of beneficial interest outstanding
(unlimited shares of $0.001 par value authorized) 174,430
Net asset value and redemption price per share $ 31.97
-----------
-----------
Maximum offering price per share $ 32.96
-----------
-----------
INSTITUTIONAL CLASS:
Net Assets $69,583,711
Shares of beneficial interest outstanding
(unlimited shares of $0.001 par value authorized) 2,159,344
Net asset value, redemption price and offering
price per share $ 32.22
-----------
-----------
See notes to the financial statements.
ROCKLAND GROWTH FUND
STATEMENT OF OPERATIONS -- YEAR ENDED SEPTEMBER 30, 2000
INVESTMENT INCOME:
Dividend income $ 46,939
Interest income 89,406
-----------
Total investment income 136,345
-----------
EXPENSES:
Investment advisory fee 522,283
Administration fee 49,355
Shareholder servicing and accounting costs 79,012
Custody fees 41,830
Federal and state registration 42,024
Professional fees 35,132
Reports to shareholders 7,315
Trustees' fees and expenses 2,960
Amortization of organizational expenses 6,954
Distribution expenses -- Retail Class 10,921
Other 11,428
-----------
Total expenses 809,214
-----------
NET INVESTMENT LOSS (672,869)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments 16,173,341
Short positions (80,983)
Net change in unrealized appreciation/depreciation
on investments 13,263,684
-----------
Net realized and unrealized gain on investments 29,356,042
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $28,683,173
-----------
-----------
See notes to the financial statements.
ROCKLAND GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
------------------ -------------------
<S> <C> <C>
OPERATIONS:
Net investment loss $ (672,869) $ (237,807)
Net realized gain (loss) on:
Investments 16,173,341 6,678,104
Short positions (80,983) (85,807)
Net change in unrealized appreciation/depreciation on:
Investments 13,263,684 2,832,339
Short positions -- 1,403
----------- -----------
Net increase in net assets resulting from operations 28,683,173 9,188,232
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 30,829,073 3,621,330
Shares issued to holders in reinvestment of dividends 6,506,869 --
Cost of shares redeemed (8,074,795) (703,078)
----------- -----------
Net increase in net assets resulting from capital share transactions 29,261,147 2,918,252
----------- -----------
DISTRIBUTIONS TO RETAIL CLASS
SHAREHOLDERS FROM NET REALIZED GAINS (635,370) --
----------- -----------
DISTRIBUTIONS TO INSTITUTIONAL CLASS
SHAREHOLDERS FROM NET REALIZED GAINS (6,074,008) --
----------- -----------
NET INCREASE IN NET ASSETS 51,234,942 12,106,484
NET ASSETS:
Beginning of period 23,925,206 11,818,722
----------- -----------
End of period $75,160,148 $23,925,206
----------- -----------
----------- -----------
</TABLE>
See notes to the financial statements.
ROCKLAND GROWTH FUND
FINANCIAL HIGHLIGHTS
<TABLE>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
----------------------------- ------------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
CLASS CLASS CLASS CLASS
----- ------------- ----- -------------
<S> <C> <C> <C> <C>
Per Share Data:
Net asset value, beginning of period $19.25 $19.34 $11.17 $11.21
------ ------ ------ ------
Income from investment operations:
Net investment loss (0.38)(7)<F7> (0.28)(7)<F7> (0.25)(8)<F8> (0.20)(8)<F8>
Net realized and unrealized gains (losses)
on investments 18.13 18.19 8.33 8.33
------ ------ ------ ------
Total from investment operations 17.75 17.91 8.08 8.13
------ ------ ------ ------
Less distributions:
Dividends in excess of net investment income -- -- -- --
Distributions from net realized gains (5.03) (5.03) -- --
Return of Capital -- -- -- --
------ ------ ------ ------
Total distributions (5.03) (5.03) -- --
------ ------ ------ ------
Net asset value, end of period $31.97 $32.22 $19.25 $19.34
------ ------ ------ ------
------ ------ ------ ------
Total return (2)<F2> (3)<F3> 107.76% 108.14% 72.34% 72.52%
Supplemental data and ratios:
Net assets, end of period $5,576,437 $69,583,711 $2,363,867 $21,561,339
Ratio of operating expenses
to average net assets (4)<F4> (5)<F5> 1.78% 1.53% 2.00% 1.75%
Ratio of net investment loss
to average net assets (4)<F4> (5)<F5> (1.52)% (1.27)% (1.59)% (1.34)%
Portfolio turnover rate (6)<F6> 615.06% 615.06% 814.67% 814.67%
</TABLE>
(1)<F1> Commencement of operations.
(2)<F2> Not annualized for the period December 2, 1996 through September 30,
1997.
(3)<F3> The total return does not reflect the 3% front-end sales charge for
the Retail Class.
(4)<F4> Annualized for the period December 2, 1996 through September 30,
1997.
(5)<F5> Without expense reimbursements of $96,798, $107,092 and $120,419 for
the years ended September 30, 1999, 1998 and the period December 2,
1996 through September 30, 1997, respectively, the ratio of
operating expenses to average net assets would have been 2.56%,
2.85% and 4.23% for the Retail class and 2.31%, 2.60% and 3.98% for
the Institutional class, respectively. The ratio of net investment
loss to average net assets would have been (2.15)%, (2.57)% and
(3.60)% for the Retail class and (1.90)%, (2.32)% and (3.35)% for
the Institutional class, respectively.
(6)<F6> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(7)<F7> Net investment loss per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
(8)<F8> Net investment loss per share represents net investment loss divided
by the monthly average shares of beneficial interest outstanding
throughout the period.
See notes to the financial statements.
ROCKLAND GROWTH FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
DECEMBER 2, 1996(1)<F9>
YEAR ENDED THROUGH
SEPTEMBER 30, 1998 SEPTEMBER 30, 1997
----------------------------- -----------------------------
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 (0.20)(7)<F15> (0.17)(7)<F15> (0.15)(8)<F16> (0.11)(8)<F16>
Net realized and unrealized gains
(losses) on investments (2.73) (2.73) 4.57 4.56
------ ------ ------ ------
Total from investment operations (2.93) (2.90) 4.42 4.45
------ ------ ------ ------
Less distributions:
Dividends in excess of net investment income -- -- -- (0.02)
Distributions in excess of net realized gains (0.18) (0.18) -- --
Return of capital (0.14) (0.14) -- --
------ ------ ------ ------
Total distributions (0.32) (0.32) -- (0.02)
------ ------ ------ ------
Net asset value, end of period $11.17 $11.21 $14.42 $14.43
------ ------ ------ ------
------ ------ ------ ------
Total return (2)<F10> (3)<F11> (20.44%) (20.21%) 44.20% 44.53%
Supplemental data and ratios:
Net assets, end of period $1,137,385 $10,681,337 $921,991 $10,858,957
Ratio of operating expenses
to average net assets (4)<F12> (5)<F13> 2.00% 1.75% 2.00% 1.75%
Ratio of net investment loss
to average net assets (4)<F12> (5)<F13> (1.72)% (1.47)% (1.36)% (1.11)%
Portfolio turnover rate (6)<F14> 353.27% 353.27% 204.05% 204.05%
</TABLE>
(1)<F9> Commencement of operations.
(2)<F10> Not annualized for the period December 2, 1996 through September
30, 1997.
(3)<F11> The total return does not reflect the 3% front-end sales charge for
the Retail Class.
(4)<F12> Annualized for the period December 2, 1996 through September 30,
1997.
(5)<F13> Without expense reimbursements of $96,798, $107,092 and $120,419
for the years ended September 30, 1999, 1998 and the period
December 2, 1996 through September 30, 1997, respectively, the
ratio of operating expenses to average net assets would have been
2.56%, 2.85% and 4.23% for the Retail class and 2.31%, 2.60% and
3.98% for the Institutional class, respectively. The ratio of net
investment loss to average net assets would have been (2.15)%,
(2.57)% and (3.60)% for the Retail class and (1.90)%, (2.32)% and
(3.35)% for the Institutional class, respectively.
(6)<F14> Portfolio turnover is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(7)<F15> Net investment loss per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
(8)<F16> Net investment loss per share represents net investment loss
divided by the monthly average shares of beneficial interest
outstanding throughout the period.
See notes to the financial statements.
ROCKLAND GROWTH FUND
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 2000
SHARES VALUE
------ -----
COMMON STOCKS -- 97.1%
AEROSPACE & DEFENSE -- 0.2%
10,000 Armor Holdings, Inc. *<F17> $ 150,000
-----------
BUSINESS SERVICES -- 10.9%
60,000 The Corporate Executive Board Company *<F17> 2,415,000
35,000 Hall, Kinion & Associates, Inc. *<F17> 995,313
40,000 Heidrick & Struggles International, Inc. *<F17> 2,055,000
20,000 Korn/Ferry International *<F17> 756,250
30,000 Professional Detailing, Inc. *<F17> 1,710,000
10,000 Tetra Tech, Inc. *<F17> 285,625
-----------
8,217,188
-----------
CHEMICALS -- 1.4%
18,000 Albany Molecular Research, Inc. *<F17> 1,011,375
-----------
COMMUNICATIONS & MEDIA -- 0.2%
10,000 Saga Communications, Inc. -- Class A *<F17> 165,000
-----------
COMPUTER SERVICES -- 11.6%
22,000 The BISYS Group, Inc. *<F17> 1,700,875
40,000 Carreker Corporation *<F17> 780,000
20,000 JNI Corp. *<F17> 1,780,000
25,000 Manhattan Associates, Inc. *<F17> 1,531,250
15,000 MMC Networks, Inc. *<F17> 1,897,500
25,000 Network Engines, Inc. *<F17> 1,023,437
-----------
8,713,062
-----------
CONSUMER PRODUCTS -- 1.1%
20,000 Direct Focus, Inc. *<F17> 795,000
-----------
DISTRIBUTION -- 2.7%
38,000 Bell Microproducts Inc. *<F17> 1,187,500
15,000 ScanSource, Inc. *<F17> 800,625
-----------
1,988,125
-----------
DRUGS -- 2.9%
15,000 Corvas International, Inc. *<F17> 348,750
17,000 Cubist Pharmaceuticals, Inc. *<F17> 885,063
40,000 First Horizon Pharmaceutical Corporation *<F17> 725,000
3,000 Priority Healthcare Corporation -- Class B *<F17> 228,750
-----------
2,187,563
-----------
EDUCATION -- 5.5%
40,000 Career Education Corporation *<F17> 1,780,000
40,000 Corinthian Colleges, Inc. *<F17> 2,360,000
-----------
4,140,000
-----------
ELECTRICAL EQUIPMENT -- 0.4%
15,000 Pemstar Inc.*<F17> 295,312
-----------
ELECTRONICS -- 2.1%
60,000 A.C.S. Electronics Limited *<F17> (1)<F18> 542,812
25,000 BEI Technologies, Inc. 1,043,750
-----------
1,586,562
-----------
FINANCIAL SERVICES -- 4.0%
50,000 Actrade Financial Technologies, Ltd. *<F17> 1,503,125
12,000 Dain Rauscher Corporation 1,116,000
166,667 U.S. Capital Financial Corp. *<F17> (2)<F19> 250,000
5,000 Waddell & Reed Financial, Inc. 155,000
-----------
3,024,125
-----------
HEALTH CARE SERVICES & SUPPLIES -- 4.7%
25,000 Accredo Health, Incorporated *<F17> 1,221,875
40,000 AmSurg Corp. -- Class A *<F17> 560,000
50,000 Orthodontic Centers of America, Inc. *<F17> 1,665,625
6,000 U.S. Physical Therapy, Inc. *<F17> 91,688
-----------
3,539,188
-----------
INTERNET -- 4.6%
7,000 Ariba, Inc. *<F17> 1,002,859
45,000 Avocent Corporation *<F17> 2,480,625
-----------
3,483,484
-----------
MEDICAL PRODUCTS -- 0.2%
8,000 HealthTronics, Inc. *<F17> 121,000
-----------
OIL & GAS SERVICES -- 10.5%
10,000 Dril-Quip, Inc. *<F17> 398,750
50,000 Enterprise Products Partners L.P. 1,446,875
45,000 HS Resources, Inc. *<F17> 1,513,125
35,000 Noble Drilling Corporation *<F17> 1,758,750
30,000 Patterson Energy, Inc. *<F17> 1,031,250
30,000 Spinnaker Exploration Company *<F17> 1,046,250
30,000 St. Mary Land & Exploration Company 691,875
-----------
7,886,875
-----------
RETAIL -- 8.2%
40,000 1-800 CONTACTS, Inc. *<F17> 1,920,000
7,000 CDW Computer Centers, Inc. *<F17> 483,000
5,000 Cost Plus, Inc. *<F17> 150,625
30,000 Insight Enterprises, Inc. *<F17> 817,500
25,000 PC Connection, Inc. *<F17> 1,425,000
40,000 Rent-A-Center, Inc. *<F17> 1,387,500
-----------
6,183,625
-----------
SAVINGS & LOAN -- 0.1%
7,000 Berkshire Hills Bancorp, Inc. 100,625
-----------
SEMICONDUCTORS -- 10.3%
10,000 All American Semiconductor, Inc. *<F17> 201,875
10,000 Micrel, Incorporated *<F17> 670,000
45,000 Oak Technology, Inc. *<F17> 1,231,875
26,000 SIPEX Corporation *<F17> 1,093,625
40,000 TranSwitch Corporation *<F17> 2,550,000
10,000 Tvia, Inc. *<F17> 179,375
20,000 Vitesse Semiconductor Corporation *<F17> 1,778,750
-----------
7,705,500
-----------
SOFTWARE -- 8.9%
25,000 Advent Software, Inc. *<F17> 1,746,875
28,000 BARRA, Inc. *<F17> 1,737,750
23,000 MapInfo Corporation *<F17> 720,188
25,000 MIND C.T.I. Ltd. *<F17> (1)<F18> 296,875
15,000 SERENA Software, Inc. *<F17> 690,938
23,000 Ulticom, Inc. *<F17> 1,083,875
25,000 ValiCert, Inc. *<F17> 437,500
-----------
6,714,001
-----------
TELECOMMUNICATIONS -- 4.3%
45,000 Anixter International Inc. *<F17> 1,310,625
10,000 Boston Communications Group, Inc. *<F17> 192,500
30,000 Hybrid Networks, Inc. *<F17> 556,875
8,000 LightPath Technologies, Inc. *<F17> 380,000
5,750 Nanovation Technologies Inc *<F17> (2)<F19> 258,750
20,000 o2wireless Solutions, Inc. *<F17> 386,250
9,000 Western Multiplex Corporation *<F17> 144,562
-----------
3,229,562
-----------
TEXTILES & APPAREL -- 2.3%
35,000 Columbia Sportswear Company *<F17> 1,605,625
10,000 Vans, Inc. *<F17> 153,750
-----------
1,759,375
-----------
TOTAL COMMON STOCKS (Cost $56,039,777) 72,996,547
-----------
WARRANTS -- 0.0%
20,833 RateXchange Corporation *<F17> $ 0
-----------
PRINCIPAL
AMOUNT
---------
SHORT-TERM INVESTMENTS -- 1.5%
VARIABLE RATE DEMAND NOTES #<F20> -- 1.5%
$375,076 American Family Financial Services, Inc., 6.2352% 375,076
774,536 Firstar Bank, 6.37% 774,536
-----------
TOTAL SHORT-TERM INVESTMENTS (Cost $1,149,612) 1,149,612
-----------
TOTAL INVESTMENTS -- (COST $57,189,389) -- 98.6% 74,146,159
Other Assets, less Liabilities -- 1.4% 1,013,989
-----------
TOTAL NET ASSETS -- 100.0% $75,160,148
-----------
-----------
*<F17> Non-income producing security.
(1)<F18> Foreign Security
(2)<F19> Illiquid Security - acquired through a private placement.
#<F20> 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 September 30, 2000.
See notes to the financial statements.
ROCKLAND GROWTH FUND
NOTES TO THE FINANCIAL STATEMENTS -- SEPTEMBER 30, 2000
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.
c) Distributions to Shareholders - Dividends from net investment income
are generally declared and paid annually in December. Distributions of
net realized capital gains, if any, will be declared at least annually
and are generally distributed in December. 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. The Fund may utilize earnings and profits distributed to
shareholders on redemption of shares as part of the dividend paid
deduction.
Generally accepted accounting principles require that permanent
differences between financial reporting and tax reporting be
reclassified between various components of net assets. Permanent
differences relating to organizational expenses which are not
deductible for tax purposes of $3,438 were reclassified from capital
stock to undistributed net investment income and permanent differences
relating to utilization of earnings and profits distributed on
redeemed shares of $1,395,329 were reclassified from accumulated
undistributed net realized gain on investments sold to capital stock.
Permanent differences from net operating losses of $669,431 were
reclassified from undistributed net investment income to accumulated
undistributed net realized gain on investments sold.
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. Temporary
differences are primarily the result of losses from wash sales.
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.
2. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest for the fiscal year ended
September 30, 2000 and September 30, 1999, respectively, were as follows:
YEAR ENDED SEPTEMBER 30, 2000 $ SHARES
----------------------------- --- ------
RETAIL SHARES:
Shares sold $ 1,354,720 46,907
Shares issued to holders in
reinvestment of dividends 588,575 29,385
Shares redeemed (710,040) (24,673)
----------- ---------
Net increase $ 1,233,255 51,619
-----------
-----------
SHARES OUTSTANDING:
Beginning of year 122,811
---------
End of year 174,430
---------
---------
INSTITUTIONAL SHARES:
Shares sold $29,474,352 1,027,994
Shares issued to holders in
reinvestment of dividends 5,918,294 293,566
Shares redeemed (7,364,754) (277,336)
----------- ---------
Net increase $28,027,892 1,044,224
-----------
-----------
SHARES OUTSTANDING:
Beginning of year 1,115,120
---------
End of year 2,159,344
---------
---------
TOTAL NET INCREASE $29,261,147
-----------
-----------
YEAR ENDED SEPTEMBER 30, 1999 $ SHARES
----------------------------- --- ------
RETAIL SHARES:
Shares sold $ 374,344 25,883
Shares issued to holders in
reinvestment of dividends -- --
Shares redeemed (75,163) (4,919)
---------- ---------
Net increase $ 299,181 20,964
----------
----------
SHARES OUTSTANDING:
Beginning of year 101,847
---------
End of year 122,811
---------
---------
INSTITUTIONAL SHARES:
Shares sold $3,246,986 202,773
Shares issued to holders in
reinvestment of dividends -- --
Shares redeemed (627,915) (40,817)
---------- ---------
Net increase 2,619,071 161,956
----------
----------
SHARES OUTSTANDING:
Beginning of year 953,164
---------
End of year 1,115,120
---------
---------
TOTAL NET INCREASE $2,918,252
----------
----------
3. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of investments, excluding short-term
investments and short positions, by the Fund for the fiscal year ended
September 30, 2000, were $334,619,873 and $312,141,976, respectively.
At September 30, 2000, gross unrealized appreciation and depreciation of
investments for tax purposes were as follows:
Appreciation $17,531,325
(Depreciation) (1,815,685)
-----------
Net appreciation on investments $15,715,640
-----------
-----------
At September 30, 2000, the cost of investments for federal income tax
purposes was $58,430,519.
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 Mutual Fund Services, LLC serves as transfer agent, administrator
and accounting services agent for the Fund. Firstar Bank, N.A. serves as
custodian 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. At September 30, 2000, the Fund had no short
positions.
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 incurred
$10,921 pursuant to the Plan for the fiscal year ended September 30, 2000.
7. SUBSEQUENT EVENTS
The Board of Trustees approved the combination of the Institutional and
Retail classes of the Fund into a single no-load class effective October 1,
2000. The Board also voted to change the name of the Fund to the Rockland
Small Cap Growth Fund effective October 1, 2000. In conjunction with these
changes, the Board terminated the 12b-1 Distribution and Servicing Plan and
related agreements for the Retail class shares effective October 1, 2000.
The Fund's principal investment strategies will remain the same and the new
name for the Fund will clarify these strategies.
ROCKLAND GROWTH FUND
INDEPENDENT AUDITORS' REPORT
The Shareholders and Board of Trustees
The Rockland Growth Fund:
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, 2000, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the years in the two
year period then ended and the financial highlights for each of the periods
presented. 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
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. 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 misstatements. 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 as of September 30, 2000,
by correspondence with the custodian and brokers; where replies were not
received we performed other auditing procedures. 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 audits provide 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, 2000, the results of its operations for the year then
ended, the changes in its net assets for each of the years in the two year
period then ended, and the financial highlights for the each of the periods
presented, in conformity with accounting principles generally accepted in the
United States of America.
/s/KPMG LLP
Chicago, Illinois
November 1, 2000
ROCKLAND GROWTH FUND
TAX INFORMATION
In early 2000, shareholders received information regarding all distributions
paid to them by the Fund during the fiscal year ended September 30, 2000. The
Fund hereby designates $1,480,728 as a long-term capital gain distribution taxed
at 20%.
TRUSTEES
Mr. Charles Cruice
Mr. Richard Gould
Mr. George Keeley
Mr. Edwin Moats, Jr.
Dr. Peter Utsinger
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
DISTRIBUTOR
AmeriPrime Financial Securities, Inc.
1793 Kingswood Drive, Suite 200
Southlake, TX 76092
CUSTODIAN
Firstar Bank, N.A.
P.O. Box 701
425 Walnut Street
Cincinnati, OH 45202
ADMINISTRATOR, TRANSFER AGENT
AND DIVIDEND-DISBURSING AGENT
Firstar Mutual Fund Services, LLC
P.O. Box 701
Third Floor
615 East Michigan Street
Milwaukee, WI 53202
INDEPENDENT ACCOUNTANTS
KPMG LLP
303 East Wacker Drive
Chicago, IL 60601
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
1701 Market Street
Philadelphia, PA 19103
