(THE ROCKLAND GROWTH FUND LOGO)
SEMI-ANNUAL REPORT
MARCH 31, 2000
THE ROCKLAND GROWTH FUND
RETAIL CLASS (RKGBX)
INSTITUTIONAL CLASS (RKGRX)
(THE ROCKLAND GROWTH FUND LOGO)
SEMI-ANNUAL REPORT
May 23, 2000
Dear Fellow Shareholders,
Turbulent periods in the stock market may often try the patience of even the
most resolute long-term investors. Small company stocks do tend to be more
volatile than large blue chip stocks, but in return investors are rewarded with
higher returns in the long run. Usually 90% of small cap returns occur in 10% of
the time, and investors cannot afford to try to time the market for the
likelihood of missing significant market moves. Investors who dollar-cost-
average by investing a small amount every month usually will come out ahead.
Those investors wishing to set up a monthly investment program should contact
Lynn Doty at (800) 220-0132 and ask for the Automatic Investment Program.
Thanks for your support,
/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
P. O. Box 701
Milwaukee, Wisconsin 53201-0701
1-800-497-3933
ROCKLAND GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2000 (UNAUDITED)
ASSETS:
Investments, at value (cost $52,201,053) $60,476,048
Receivable for investments sold 6,072,675
Receivable for capital shares sold 12,301
Dividends and interest receivable 19,968
Organizational expenses, net of accumulated amortization 11,107
Cash 1,800
Other assets 32,914
-----------
Total Assets 66,626,813
-----------
LIABILITIES:
Payable for investments purchased 3,990,806
Capital shares repurchased 21,979
Payable to Adviser 57,434
Accrued expenses and other liabilities 63,527
-----------
Total Liabilities 4,133,746
-----------
NET ASSETS $62,493,067
-----------
-----------
NET ASSETS CONSIST OF:
Capital stock $32,953,037
Accumulated undistributed net realized
gain on investments sold 21,265,035
Net unrealized appreciation on investments 8,274,995
-----------
Total Net Assets $62,493,067
-----------
-----------
RETAIL CLASS:
Net Assets $ 5,117,772
Shares of beneficial interest outstanding
(unlimited shares of $0.001 par value authorized) 164,469
Net asset value and redemption price per share $ 31.12
-----------
-----------
Maximum offering price per share $ 32.08
-----------
-----------
INSTITUTIONAL CLASS:
Net Assets $57,375,295
Shares of beneficial interest outstanding
(unlimited shares of $0.001 par value authorized) 1,831,168
Net asset value, redemption price and
offering price per share $ 31.33
-----------
-----------
See notes to the financial statements.
ROCKLAND GROWTH FUND
STATEMENT OF OPERATIONS -- PERIOD ENDED MARCH 31, 2000 (UNAUDITED)
INVESTMENT INCOME:
Dividend income $ 11,812
Interest income 42,260
-----------
Total investment income 54,072
-----------
EXPENSES:
Investment advisory fee 216,371
Administration fee 24,699
Shareholder servicing and accounting costs 36,128
Custody fees 19,605
Federal and state registration 17,094
Professional fees 12,975
Reports to shareholders 3,225
Trustees' fees and expenses 1,630
Amortization of organizational expenses 3,477
Distribution expenses -- Retail Class 4,798
Other 4,689
-----------
Total expenses 344,691
-----------
NET INVESTMENT LOSS (290,619)
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 22,558,792
Net change in unrealized appreciation/depreciation
on investments 4,581,909
-----------
Net realized and unrealized gain on investments 27,140,701
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $26,850,082
-----------
-----------
See notes to the financial statements.
ROCKLAND GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
---------------- ------------------
(UNAUDITED)
<S> <C> <C>
OPERATIONS:
Net investment loss $ (290,619) $ (237,807)
Net realized gain (loss) on:
Investments 22,558,792 6,678,104
Short positions -- (85,807)
Net change in unrealized appreciation/depreciation on
Investments 4,581,909 2,832,339
Short positions -- 1,403
----------- -----------
Net increase in net assets resulting from operations 26,850,082 9,188,232
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 14,100,787 3,621,330
Shares issued to holders in reinvestment of dividends 6,506,869 --
Cost of shares redeemed (2,180,499) (703,078)
----------- -----------
Net increase in net assets resulting from capital share transactions 18,427,157 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 38,567,861 12,106,484
NET ASSETS:
Beginning of period 23,925,206 11,818,722
----------- -----------
End of period $62,493,067 $23,925,206
----------- -----------
----------- -----------
</TABLE>
See notes to the financial statements.
ROCKLAND GROWTH FUND
FINANCIAL HIGHLIGHTS
<TABLE>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------ ------------------------
(UNAUDITED)
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 income (0.26)(7)<F7> (0.14)(6)<F6> (0.25)(7)<F7> (0.20)(7)<F7>
Net realized and unrealized gains
(losses) on investments 17.16 17.16 8.33 8.33
------- ------- ------- -------
Total from investment operations 16.90 17.02 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 $ 31.12 $ 31.33 $ 19.25 $ 19.34
------- ------- ------- -------
------- ------- ------- -------
Total return (1)<F1> (2)<F2> 102.24% 102.39% 72.34% 72.52%
Supplemental data and ratios:
Net assets, end of period $5,117,772 $57,375,295 $2,363,867 $21,561,339
Ratio of operating expenses
to average net assets (3)<F3> (4)<F4> 1.82% 1.57% 2.00% 1.75%
Ratio of net investment loss
to average net assets (3)<F3> (4)<F4> (1.57%) (1.32%) (1.59%) (1.34%)
Portfolio turnover rate (5)<F5> 419.62% 419.62% 814.67% 814.67%
</TABLE>
(1)<F1> Not annualized for the six months ended March 31, 2000 and the period
December 2, 1996 through September 30, 1997.
(2)<F2> The total return does not reflect the 3% front-end sales charge for
the Retail Class.
(3)<F3> Annualized for the six months ended March 31, 2000 and the period
December 2, 1996 through September 30, 1997.
(4)<F4> 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.
(5)<F5> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(6)<F6> Net investment loss per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
(7)<F7> 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
<TABLE>
DECEMBER 2, 1996(1)<F8>
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 income (0.20)(7)<F14> (0.17)(7)<F14> (0.15)(8)<F15> (0.11)(8)<F15>
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)<F9> (3)<F10> (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)<F11> (5)<F12> 2.00% 1.75% 2.00% 1.75%
Ratio of net investment loss
to average net assets (4)<F11> (5)<F12> (1.72%) (1.47%) (1.36%) (1.11%)
Portfolio turnover rate (6)<F13> 353.27% 353.27% 204.05% 204.05%
</TABLE>
(1)<F8> Commencement of operations.
(2)<F9> Not annualized for the six months ended March 31, 2000 and the
period December 2, 1996 through September 30, 1997.
(3)<F10> The total return does not reflect the 3% front-end sales charge for
the Retail Class.
(4)<F11> Annualized for the six months ended March 31, 2000 and the period
December 2, 1996 through September 30, 1997.
(5)<F12> 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)<F13> Portfolio turnover is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
(7)<F14> Net investment loss per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
(8)<F15> 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 -- MARCH 31, 2000 (UNAUDITED)
SHARES VALUE
------ -----
COMMON STOCKS -- 96.5%
BUILDING & CONSTRUCTION -- 2.0%
40,000 Insituform Technologies, Inc. -- Class A *<F16> $ 1,225,000
-----------
BUSINESS SERVICES -- 4.5%
17,500 AdStar.com, Inc. *<F16> 120,312
20,000 The Corporate Executive Board Company *<F16> 1,015,000
15,000 HeadHunter.NET, Inc. *<F16> 270,937
35,000 Heidrick & Struggles International, Inc. *<F16> 1,404,375
-----------
2,810,624
-----------
COMMUNICATIONS & MEDIA -- 0.8%
26,800 Saga Communications, Inc. -- Class A *<F16> 512,550
-----------
COMPUTERS -- 4.8%
15,000 Advanced Digital Information Corporation *<F16> 513,750
20,000 Cybex Computer Products Corporation *<F16> 752,500
13,000 Hauppauge Digital, Inc. *<F16> 239,688
15,000 Mercury Computer Systems, Inc. *<F16> 733,125
5,000 National Computer Systems, Inc. 253,750
2,000 SanDisk Corporation *<F16> 245,000
15,000 TALX Corporation *<F16> 285,000
-----------
3,022,813
-----------
COMPUTER SERVICES -- 6.0%
35,000 Eltrax Systems, Inc. *<F16> 465,938
33,000 Information Resource Engineering, Inc. *<F16> 1,196,250
20,000 McAfee.com Corporation *<F16> 1,033,750
30,000 ODS Networks, Inc. *<F16> 720,000
10,000 Pilot Network Services, Inc. *<F16> 330,625
-----------
3,746,563
-----------
EDUCATION -- 0.8%
10,000 Corinthian Colleges, Inc. *<F16> 160,000
10,000 Learning Tree International, Inc. *<F16> 355,000
-----------
515,000
-----------
ELECTRONICS -- 1.9%
20,000 Technitrol, Inc. 1,165,000
-----------
ELECTRICAL EQUIPMENT -- 9.0%
20,000 Electro Scientific Industries, Inc. *<F16> 1,160,000
10,000 Excel Technology, Inc. *<F16> 353,750
10,000 Helix Technology Corporation 600,625
6,000 Newport Corporation 810,000
5,000 Orbotech Ltd. (1)<F17> 425,000
23,000 Photon Dynamics, Inc. *<F16> 1,587,000
30,000 Sensormatic Electronics Corporation *<F16> 673,125
-----------
5,609,500
-----------
FINANCIAL SERVICES -- 0.9%
5,000 Dain Rauscher Corporation 329,687
166,667 U.S. Capital Financial Corp. *<F16> (2)<F18> 250,000
-----------
579,687
-----------
INTERNET -- 12.4%
15,000 AppliedTheory Corporation *<F16> 313,125
25,000 b2bstores.com, Inc. *<F16> 250,000
22,000 click2learn.com, Inc. *<F16> 313,500
3,000 Commerce One, Inc. *<F16> 447,750
3,000 Covad Communications Group, Inc. *<F16> 217,500
7,000 Digex, Inc. *<F16> 776,562
2,500 Digital Insight Corporation *<F16> 128,125
10,000 E-Sync Networks, Inc. *<F16> 136,250
7,000 Go2Net, Inc. *<F16> 563,937
20,000 Harbinger Corporation *<F16> 582,500
30,000 IntraNet Solutions, Inc. *<F16> 1,380,000
56,666 NetAmerica.com Corporation *<F16> 1,430,817
35,000 Netzee, Inc. *<F16> 520,625
10,000 Panja Inc. *<F16> 230,000
50,000 PartsBase.com, Inc. *<F16> 465,625
-----------
7,756,316
-----------
MACHINERY - INDUSTRIAL -- 1.0%
11,000 Asyst Technologies, Inc. *<F16> 643,500
-----------
MEDICAL PRODUCTS -- 2.4%
12,000 Digene Corporation *<F16> 552,000
40,000 HealthTronics, Inc. *<F16> 740,000
12,500 Laser Photonics, Inc. *<F16> 170,312
-----------
1,462,312
-----------
OIL & GAS SERVICES -- 4.9%
5,000 Atwood Oceanics, Inc. *<F16> 331,563
15,000 Cal Dive International, Inc. *<F16> 761,250
25,000 Devon Energy Corporation 1,214,063
10,000 HS Resources, Inc. *<F16> 211,250
40,000 Patina Oil & Gas Corporation 542,500
-----------
3,060,626
-----------
RETAIL -- 2.0%
35,000 1-800 CONTACTS, INC. *<F16> 1,211,875
-----------
SEMICONDUCTORS -- 15.3%
25,000 Actel Corporation *<F16> 892,187
20,000 Amkor Technology, Inc. *<F16> 1,061,250
33,000 Dallas Semiconductor Corporation 1,159,125
10,000 Genus, Inc. *<F16> 138,750
2,000 Ibis Technology Corporation *<F16> 180,000
10,000 Lam Research Corporation *<F16> 450,625
25,000 LTX Corporation *<F16> 1,129,688
5,000 Metalink Ltd. *<F16> (1)<F17> 191,875
30,000 Metron Technology N.V. *<F16> 630,000
10,000 MKS Instruments, Inc. *<F16> 505,000
3,000 Novellus Systems, Inc. *<F16> 168,375
16,000 TranSwitch Corporation *<F16> 1,538,000
16,000 Vitesse Semiconductor Corporation *<F16> 1,540,000
-----------
9,584,875
-----------
SOFTWARE -- 5.0%
28,000 BARRA, Inc. *<F16> 948,500
10,000 Caminus Corporation *<F16> 200,000
7,000 Interactive Intelligence, Inc. *<F16> 301,000
14,000 ION Networks, Inc. *<F16> 470,750
18,000 MapInfo Corporation *<F16> 702,000
5,000 Mission Critical Software, Inc. *<F16> 305,625
6,000 SERENA Software, Inc. *<F16> 191,250
-----------
3,119,125
-----------
TELECOMMUNICATIONS -- 22.8%
10,000 Adelphia Business Solutions, Inc. *<F16> 616,250
14,000 Anaren Microwave, Inc. *<F16> 1,342,250
20,000 C-COR.net Corp. *<F16> 980,000
4,000 Copper Mountain Networks, Inc. *<F16> 327,750
10,000 Coyote Network Systems, Inc. 110,000
10,000 Ditech Communications Corporation *<F16> 1,060,625
8,000 E-Tek Dynamics, Inc. *<F16> 1,882,000
15,000 ECtel Ltd. *<F16> (1)<F17> 298,125
8,000 LightPath Technologies, Inc. *<F16> 361,000
30,000 Lumenon Innovative Lightwave Technology, Inc. *<F16> 712,500
12,000 MasTec, Inc. *<F16> 1,068,000
5,000 Nanovation Technologies Inc. *<F16> (2)<F18> 225,000
6,000 RCN Corporation *<F16> 323,250
12,000 RF Micro Devices, Inc. *<F16> 1,612,500
12,500 Tele Leste Celular Patricipacoes S.A. (1)<F17> 750,000
35,000 US LEC Corp. -- Class A *<F16> 1,391,250
13,000 Winstar Communications, Inc. *<F16> 780,000
9,000 XETA Corporation *<F16> 409,500
-----------
14,250,000
-----------
TOTAL COMMON STOCKS (Cost $52,000,371) 60,275,366
-----------
PRINCIPAL
AMOUNT
---------
SHORT-TERM INVESTMENTS -- 0.3%
VARIABLE RATE DEMAND NOTES #<F19> -- 0.3%
$200,682 Firstar Bank, 5.8825% 200,682
-----------
TOTAL SHORT-TERM INVESTMENTS (Cost $200,682) 200,682
-----------
TOTAL INVESTMENTS -- (COST OF $52,201,053) -- 96.8% 60,476,048
Other Assets, less Liabilities -- 3.2% 2,017,019
-----------
TOTAL NET ASSETS -- 100.0% $62,493,067
-----------
-----------
*<F16> Non-income producing security.
(1)<F17> Foreign Security
(2)<F18> Illiquid Security
#<F19> 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, 2000.
See notes to the financial statements.
ROCKLAND GROWTH FUND
NOTES TO THE FINANCIAL STATEMENTS -- MARCH 31, 2000 (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.
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.
Generally accepted accounting principles require that permanent
differences between financial reporting and tax reporting be
reclassified between various components of net assets.
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 six months ended March
31, 2000 were as follows:
$ SHARES
--- ------
RETAIL SHARES:
Shares sold $ 542,127 19,433
Shares issued to holders in
reinvestment of dividends 588,575 29,385
Shares redeemed (200,868) (7,160)
----------- ---------
Net increase $ 929,834 41,658
-----------
-----------
SHARES OUTSTANDING:
Beginning of period 122,811
---------
End of period 164,469
---------
---------
INSTITUTIONAL SHARES:
Shares sold $13,558,660 501,164
Shares issued to holders in
reinvestment of dividends 5,918,294 293,566
Shares redeemed (1,979,631) (78,682)
----------- ---------
Net increase 17,497,323 716,048
-----------
-----------
SHARES OUTSTANDING:
Beginning of period 1,115,120
---------
End of period 1,831,168
---------
---------
TOTAL NET INCREASE $18,427,157
-----------
-----------
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, 2000, were $184,327,977 and $172,273,912, respectively.
At March 31, 2000, gross unrealized appreciation and depreciation of
investments for tax purposes were as follows:
Appreciation $11,224,272
(Depreciation) (4,791,772)
-----------
Net appreciation on investments $ 6,432,500
-----------
-----------
At March 31, 2000, the cost of investments for federal income tax purposes
was $54,043,548.
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 March 31, 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
$4,798 pursuant to the Plan for the six months ended March 31, 2000.
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
CUSTODIAN
Firstar Bank, N.A.
P.O. Box 701
777 East Wisconsin Avenue
Milwaukee, WI 53202
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
