KALMAR
POOLED
INVESTMENT
TRUST
-----------
[GRAPHIC OMITTED]
KALMAR "GROWTH-WITH-VALUE" SMALL CAP FUND
SEMI-ANNUAL REPORT
JUNE 30, 2000
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"Growth-with-Value"
Small Cap Fund
REPORT FROM MANAGEMENT
DEAR FELLOW SHAREHOLDERS AND FRIENDS:
The first six months of the Year 2000 represented quite a roller coaster ride
for the U.S. stock market, particularly for certain of its racier segments,
accompanied by unprecedented day-by-day volatility. The fact that most market
indexes finished relatively little changed gives no clue to the radical highs
and lows that the market put its increasing number of speculative investors
through. From the first two months climactic blow-off in Technology, Internet,
and other New Economy stocks, to the next several months sharp fully-deserved
correction in the same, to the partial recovery in June, it was a difficult time
for many. Despite this volatility, in contrast, it was a very gratifying and
rewarding period for Kalmar Fund shareholders, as can be seen below. Importantly
also, your strong outperformance developed for good, understandable reasons and
was generated in what one might consider "the right way" in a risk adjusted,
fundamental sense.
<TABLE>
<CAPTION>
SINCE
JUNE 2ND QUARTER YEAR TO DATE ONE YEAR 3 YEARS INCEPTION
------- ----------- ------------ -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Kalmar "Growth-with-Value" Fund 10.14 5.72 19.91 27.11 42.67 71.77
Russell 2000 Index 8.72 (3.78) 3.04 14.32 35.20 55.87
Russell 2000 Value Index 2.92 1.94 5.85 (0.94) 11.97 27.92
Lipper Small Cap Core Index 8.82 (1.60) 8.55 23.62 38.98 61.83
S&P 500 Index 2.49 (2.66) (0.47) 7.24 71.33 100.74
</TABLE>
PORTFOLIO STRATEGY
Throughout the frenzied, ultra narrow, ultra speculative Tech and Internet craze
of the late Fall and Winter -- during which your Fund's "Growth-with-Value"
investment style could not be expected to do well -- we held true to our
on-going determination to develop portfolios with offensive muscle but without
taking on the severe risks of questionable business models, extreme valuations,
or highly momentumized "greater fool" names. The benefits of this responsible
strategy, while delayed earlier by the speculative fever and one-dimensional
psychology of the market, have been realized more recently.
Thus, in general terms, the reasons for your Fund's very substantial
outperformance for the Second Quarter and Year-to-Date can be attributed to the
productive integration of our "Growth-with-Value" style, creative research in
inefficiently-valued "good growing businesses", the benefits of portfolio
balance resulting from our proactive diversification strategy (which aims to own
individually dynamic companies across a wide range of industries), and our
conscious emphasis on controlling risk while keeping reward potential high.
As we see it, the first half of 2000 represented a continuation of the market's
on again/off again broadening effort, which began initially in April 1999. In
effect, while correcting, the market broadened and became more discriminating.
At least temporarily, it seems more willing to reward good, forward,
sensibly-valued growing companies for their accomplishments, profitable business
models, and innovative e-commerce initiatives -- particularly relative to the
pure-play New Economy speculative names that had utterly dominated investor
psychology earlier. What we have been experiencing is an overdue catch-up of
substance versus sizzle, combined with research and stock picking that have been
good right along, though masked by the hugely speculative, narrow, polarized
market that we have thankfully been exiting for several months. We also
benefited from the sensible balance between our technology and non-technology
holdings, as well as generally top-notch fundamental business delivery company
by company throughout your portfolio.
1
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
REPORT FROM MANAGEMENT -- CONTINUED
SECTORAL POSITIONING/STOCK PICKING
In sectoral positioning terms, the reasons behind our outperformance of the
Russell 2000, for instance, can be described quite easily for this half year.
Our specific stock holdings simply outperformed the Russell 2000 in each of its
economic sectors, irrespective of our sector weightings which are typically
somewhat different than the index. This is legitimately a function of good
research and strong company business delivery. Still, given its very
comprehensiveness, such a total sweep must be considered a rather rare event in
the context of our bottom-up low turnover investment style. Remember we focus on
superior intermediate and long term performance with a genuine company ownership
investment intent -- rather than scrambling to stay on the edge of short run
market psychology, with all the rapid sector rotation and high turnover that
implies.
Consider the Second Quarter's experience in more detail to illustrate these
points. The Russell Technology Sector did badly, with Kalmar having about a 4%
higher technology weighting than the Russell's. Yet your Fund's tech stocks in
aggregate declined only very slightly compared to a much deeper decline for the
Russell Technology group. For sectors that did well, the experience was similar.
Kalmar had less than half the Russell's Health Care sector weighting -- mainly
because biotech and genomic stocks are difficult for a genuine investor to
participate in, let alone a "Growth-with-Value" investor. Why? Because of the
difficulty of reasonably handicapping the potential success or failure of
futuristic research; because of the venture aspect of the business/research
risk; and because of the typically formative nature of the organizations -- to
say nothing of the often wholly unrealistic valuations of the stocks. Yet your
Fund's specific stock outperformance largely compensated for your Fund's so
called underweighting in Health Care. Your Fund's Energy exposure represented
the clearest relative to sector win/win. Here we had a 3.5% higher than Russell
weighting plus modest specific stock outperformance in this strong performing
group. All in all, a very satisfying Quarter and First half.
BEST PERFORMERS/WORST PERFORMERS/NEW HOLDINGS
Finally, a few stock by stock specifics to provide some granularity for your
interest. Once again, we'll focus on the Second Quarter for reasons of
freshness. Despite the correction in many technology-related names in the last
several months, our best performers were certain technology and
telecommunications companies -- though ones, as we always try to ensure,
characterized by appealing profitability and reasonable valuations. This
contrasts to the futuristic often-profitless "story stocks" that had skyrocketed
earlier, many of which flamed out since. Examples from among your top portfolio
performers would be Tollgrade Communications, a specialty producer of diagnostic
equipment that helps in the implementation of broadband services over phone
lines; or C&D Technologies, a producer of power back up systems benefiting from
the wireless build-out; or Insight Enterprises, a rapidly growing direct
marketer of computer equipment to small businesses. Continuing the small company
take-over trend we have frequently discussed, we also had two technology related
companies bid for at meaningful premiums, namely, Burr-Brown and Shared Medical
Systems.
Your Fund's worst performers in the Half and Quarter, not surprisingly given the
tech correction, were certain other technology related stocks as well as certain
few stocks from other sectors. Virtually all poor performers incurred
operational or business disappointments of one degree or another. In the case of
Datastream, for instance, we have sold the stock because the company has proven
unable to transition its business model in the successful way we anticipated.
First Consulting Group and Pacific Sunwear, by contrast, we continue to hold for
the time being because of confidence in their respective managements, as they
work through seemingly transitory business rough patches.
2
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
REPORT FROM MANAGEMENT -- CONTINUED
All in all in the last six months, out of a portfolio of approximately
seventy-five names, we liquidated seventeen holdings completely, either because
of a decision to harvest full valuation, to eliminate the occasional problem
child, or to make room for newer, stronger potential appreciation candidates. In
like vein, we "peeled the onion" to bank success and control risk in twenty-six
other names. The capital from these actions went toward beefing up eighteen
existing positions and the initial purchase of twenty-three entirely new
holdings. Of the full and partial sales, five represented takeovers either
initiated by strategic buyers or by management lead LBO groups. Given the
discounted relative valuation of small company stocks generally, we expect this
takeover trend to continue active.
Examples of new company holdings, for your interest, include: Advanced Digital
Information, a specialist in network data storage systems benefiting from the
growth of the Internet; Barr Labs, a generic drug developer with a
differentiated three-pronged growth strategy; Buca di Beppo, a rapidly growing
operator of unique family style Italian restaurants; Mobile Mini, a nationally
expanding lessor of portable storage containers; and Morrison Management
Specialists, a growth outsourcer of food and nutritional services to the
healthcare industry. Each of these companies should be able to continue to
deliver strong or improving growth in the potentially slowing economic
environment we foresee, brought on by the six Federal Reserve interest rate
increases of the last year. Each of them, plus your other portfolio holdings of
course, has an appealing, successful business model. And each stock when
purchased also sold at an inefficient valuation and was under-owned
institutionally, in our judgment.
This brings best wishes from your dedicated twenty-person Kalmar "Growth-with-
Value" team for a healthy and prosperous Summer and Fall.
Yours sincerely,
/S/ FORD B. DRAPER
Ford B. Draper, Jr.
President
[GRAPHIC OMITTED]
[EDGAR REPRESENTATION OF PLOT POINTS IN PRINTED GRAPHIC]
Kalmar "Growth-with-Value" Small Cap Fund Growth of $10,000 vs. The Russell 2000
Index, The Russell 2000 Value Index and The Lipper Small Cap Fund Index
AVERAGE ANNUAL RETURNS
1 YEAR SINCE INCEPTION*
------ ----------------
Fund 27.11% 18.27%
Russell 2000 14.32% 14.76%
Russell 2000 Value (0.94)% 7.94%
Lipper Small Cap 23.62% 16.10%
Kalmar Russell Lipper Russell 2000 Value
Small Cap 2000 Small Cap
4/11/97 $10,000 $10,000 $10,000 $10,000
12/31/97 $14,635 $12,786 $12,602 $13,114
12/31/98 $13,514 $12,460 $12,495 $12,268
12/31/99 $14,325 $15,128 $14,908 $12,086
6/30/00 $17,177 $15,587 $16,183 $12,792
* The Fund commenced operations on April 11, 1997.
PLEASE BEAR IN MIND THAT INVESTING IN SMALL COMPANIES' STOCKS CAN INVOLVE HIGHER
RISK AND VOLATILITY THAN THOSE OF LARGER COMPANIES. THE RUSSELL 2000 AND RUSSELL
2000 VALUE ARE UNMANAGED STOCK MARKET INDICES WITHOUT ANY ASSOCIATED EXPENSES
AND THEIR RETURNS ASSUME THE REINVESTMENT OF ALL DIVIDENDS. THE LIPPER SMALL CAP
FUND INDEX FROM INCEPTION TO AUGUST 31, 1999 IS AN UNWEIGHTED INDEX OF MUTUAL
FUND PERFORMANCE WHICH CONSISTS OF THE AVERAGE RETURN OF THE 30 LARGEST SMALL
CAP FUNDS. SINCE AUGUST 31, 1999 THE LIPPER SMALL CAP FUND INDEX IS CALCULATED
USING A WEIGHTED AGGREGATE COMPOSITE INDEX FORMULA WHICH IS REBASED ANNUALLY.
ALSO, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
INVESTMENT RETURNS AND PRINCIPAL VALUES MAY FLUCTUATE, SO THAT, WHEN REDEEMED,
SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PLEASE READ THE
PROSPECTUS CAREFULLY BEFORE INVESTING. DISTRIBUTED BY PROVIDENT DISTRIBUTORS,
INC.
3
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 2000
MARKET
VALUE
SHARES (NOTE 2)
--------- ----------
COMMON STOCK -- 93.2%
BUSINESS EQUIPMENT & SERVICES -- 22.9%
BUSINESS EQUIPMENT & SERVICES -- 17.3%
Acxiom Corp.* ............................. 198,160 $ 5,399,860
Answerthink Consulting Group, Inc.* ....... 130,600 2,171,225
Armor Holdings, Inc. ...................... 124,000 1,612,000
Choicepoint, Inc.* ........................ 87,900 3,680,812
Cuno, Inc.* ............................... 115,000 2,659,375
Excel Technology, Inc.* ................... 47,500 2,389,844
F.Y.I., Inc.* ............................. 112,150 3,778,053
First Consulting Group* ................... 139,500 775,969
Hall Kinion & Associates, Inc. ............ 25,350 844,472
Insight Enterprises, Inc.* ................ 102,125 6,057,289
Maximus, Inc.* ............................ 92,600 2,048,775
NCO Group, Inc.* .......................... 110,200 2,548,375
RSA Security, Inc.* ....................... 45,700 3,164,725
Sensormatic Electronics Corp.* ............ 83,200 1,315,600
------------
38,446,374
------------
TIMESHARING & SOFTWARE -- 5.6%
Jack Henry & Associates, Inc. ............. 97,000 4,862,125
National Computer Systems, Inc. ........... 56,900 2,802,325
RadiSys Corp.* ............................ 76,350 4,332,862
Saga Systems, Inc.+ ....................... 35,200 437,800
------------
12,435,112
------------
TOTAL BUSINESS EQUIPMENT & SERVICES .................. 50,881,486
------------
CAPITAL GOODS -- 15.5%
CAPITAL EQUIPMENT -- 3.6%
Applied Power, Inc. (A Shares) ............ 105,695 3,540,782
Shaw Group, Inc.* ......................... 93,000 4,382,625
------------
7,923,407
------------
CONSTRUCTION MATERIALS -- 3.5%
Insituform Technologies (A Shares) ........ 210,400 5,707,100
Trex Company, Inc.* ....................... 42,100 2,105,000
------------
7,812,100
------------
ELECTRICAL EQUIPMENT -- 6.3%
C & D Technology, Inc. .................... 81,550 4,607,575
Electro Scientific Industries, Inc. ....... 57,200 2,518,587
Richardson Electronics, Ltd. .............. 145,800 2,341,912
Technitrol, Inc. .......................... 34,900 3,380,937
Vicor Corp.* .............................. 32,700 1,138,369
------------
13,987,380
------------
METAL FABRICATION -- 2.1%
Mobile Mini, Inc.* ........................ 44,300 977,369
Penn Engineering & Manufacturing Corp. .... 107,800 3,799,950
------------
4,777,319
------------
TOTAL CAPITAL GOODS .................................. 34,500,206
------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) -- CONTINUED
JUNE 30, 2000
MARKET
VALUE
SHARES (NOTE 2)
--------- ----------
CONSUMER NON-DURABLES -- 2.2%
APPAREL -- 0.5%
Pacific Sunwear of California* ............ 52,900 $ 991,875
------------
FOOD & RELATED -- 1.7%
Performance Food Group Co.* ............... 119,000 3,808,000
------------
TOTAL CONSUMER NON-DURABLES .......................... 4,799,875
------------
CONSUMER SERVICES -- 1.0%
LEISURE TIME INDUSTRY -- 1.0%
SCP Pool Corp.* ........................... 91,725 2,155,537
------------
TOTAL CONSUMER SERVICES .............................. 2,155,537
------------
ENERGY -- 9.1%
PETROLEUM - DOMESTIC -- 5.5%
Basin Exploration Inc.* ................... 93,700 1,674,888
Devon Energy Corp.* ....................... 59,600 3,348,775
Evergreen Resources, Inc.* ................ 118,300 3,504,638
Stone Energy Corp.* ....................... 60,200 3,596,950
------------
12,125,251
------------
PETROLEUM - SERVICES -- 3.6%
Grant Prideco Inc. ........................ 69,700 1,742,500
National-Oilwell, Inc.* ................... 61,100 2,008,663
Varco International Inc. * ................ 66,500 1,546,125
Weatherford International * ............... 69,700 2,774,931
------------
8,072,219
------------
TOTAL ENERGY ......................................... 20,197,470
------------
FINANCIAL SERVICES -- 3.6%
FINANCE COMPANIES -- 3.6%
AmeriCredit Corp.* ........................ 474,700 8,069,900
------------
TOTAL FINANCIAL SERVICES ............................. 8,069,900
------------
HEALTHCARE -- 5.0%
HEALTH CARE - DRUGS -- 1.7%
Barr Laboratories, Inc.* .................. 83,250 3,730,641
------------
HEALTH CARE - GENERAL -- 1.8%
Dentsply International, Inc. .............. 83,900 2,585,169
Morrison Management Specialists, Inc. ..... 56,375 1,589,070
------------
4,174,239
------------
HOSPITAL SUPPLY & MGMT -- 1.5%
Veterinary Centers of America, Inc.* ...... 241,100 3,315,125
------------
TOTAL HEALTHCARE ..................................... 11,220,005
------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) -- CONTINUED
JUNE 30, 2000
MARKET
VALUE
SHARES (NOTE 2)
--------- ----------
RAW MATERIALS -- 2.7%
CHEMICALS - SPECIALTY -- 2.7%
Chirex, Inc.* ............................. 65,700 $ 1,314,000
Rogers Corp.* ............................. 132,800 4,648,000
------------
TOTAL RAW MATERIALS .................................. 5,962,000
------------
RETAIL -- 6.4%
RESTAURANTS -- 2.1%
Buca, Inc. ................................ 71,900 1,123,438
Consolidated Products, Inc.* .............. 227,025 2,043,225
Outback Steakhouse, Inc.* ................. 48,400 1,415,700
------------
4,582,363
------------
RETAIL - GENERAL MERCHANDISE -- 0.6%
Cost Plus, Inc. ........................... 48,700 1,397,081
------------
RETAIL - SPECIALTY STORES -- 3.7%
David's Bridal, Inc.* ..................... 114,300 1,321,594
Michaels Stores, Inc.* .................... 100,900 4,622,481
Whitehall Jewellers, Inc.* ................ 124,950 2,171,006
------------
8,115,081
------------
TOTAL RETAIL ......................................... 14,094,525
------------
TECHNOLOGY -- 23.6%
COMMUNICATIONS EQUIPMENT -- 6.9%
Cabletron Systems, Inc.* .................. 106,000 2,676,500
Digital Microwave Corp.* .................. 63,600 2,424,750
Harmonic, Inc.* ........................... 21,870 541,283
Polycom, Inc. * ........................... 26,500 2,493,484
Tekelec* .................................. 107,700 5,189,794
Tollgrade Communications, Inc.* ........... 14,350 1,901,375
------------
15,227,186
------------
COMPUTERS - PERIPHERALS -- 11.1%
Advanced Digital Information Corp.* ....... 94,600 1,507,688
Apex Inc.* ................................ 92,400 4,042,500
AXENT Technologies, Inc. * ................ 114,900 2,850,956
Benchmark Electronics, Inc.* .............. 108,550 3,968,859
Datastream Systems, Inc. .................. 48,200 602,500
Keane, Inc.* .............................. 112,800 2,439,300
Landmark Systems Corp.* ................... 108,800 652,800
Progress Software Corp. * ................. 126,300 2,265,506
SPSS, Inc.* ............................... 83,900 2,443,588
Systems & Computer Technology Corp.* ...... 188,910 3,778,200
------------
24,551,897
------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) -- CONTINUED
JUNE 30, 2000
MARKET
VALUE
SHARES (NOTE 2)
--------- ----------
ELECTRONIC COMPONENTS -- 3.6%
ATMI, Inc.* ............................... 25,050 $ 1,164,825
Burr-Brown Corp.* ......................... 22,100 1,915,794
C-Cube Microsystems, Inc.* ................ 40,300 790,888
Lattice Semiconductor Corp.* .............. 35,000 2,419,375
------------
6,290,882
------------
ELECTRONIC INSTRUMENTS -- 2.0%
Credence Systems Corp.* ................... 26,000 1,434,875
FEI Co.* .................................. 58,750 1,791,875
Veeco Instruments, Inc.* .................. 42,100 3,083,825
------------
6,310,575
------------
TOTAL TECHNOLOGY ..................................... 52,380,540
------------
TRANSPORTATION -- 1.2%
AIR TRANSPORTATION -- 1.2%
Skywest, Inc. ............................. 69,800 2,586,962
------------
TOTAL TRANSPORTATION ................................. 2,586,962
------------
TOTAL COMMON STOCK (Cost $148,590,224) ............... 206,848,506
------------
MONEY MARKET FUNDS -- 6.9%
Sansom Street Fund - Money Market
Portfolio ............................... 11,192,618 11,192,618
Temp Cash Fund - Dollar Series ............ 4,008,339 4,008,339
------------
TOTAL MONEY MARKET FUNDS
(Cost $15,200,957) ................................. 15,200,957
------------
TOTAL INVESTMENTS -- (Cost $163,791,181) 100.1% ............... $222,049,463
------------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) ................... (187,773)
------------
NET ASSETS -- 100.0% .......................................... $221,861,690
============
* Non-income producing security.
+ The cost for Federal income tax purposes was $160,291,122. At June 30, 2000,
net unrealized appreciation was $61,758,341. This consisted of aggregate
gross unrealized appreciation in which there was an excess of market value
over tax cost of $70,709,009, and aggregate gross unrealized depreciation
for all securities in which there was an excess of tax cost over market
value of $8,950,668.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 2000
ASSETS:
Investments in securities, at market value
(Cost $163,791,181) ..................................... $222,049,463
Receivable for:
Dividends and interest .................................. 74,440
Investment securities sold .............................. 813,063
Other assets ............................................... 12,820
------------
Total Assets ............................................ 222,949,786
------------
LIABILITIES:
Payables for:
Investment securities purchased ......................... 388,107
Capital shares redeemed .................................... 482,698
Due to Advisor ............................................. 40,920
Accrued expenses ........................................... 176,371
------------
Total Liabilities ....................................... 1,088,096
------------
NET ASSETS ................................................. $221,861,690
============
NET ASSETS CONSISTED OF:
Shares of beneficial interest .............................. $ 137,982
Additional paid-in capital ................................. 134,600,270
Net investment loss ........................................ (932,187)
Accumulated net realized gain on investments ............... 29,797,343
Net unrealized appreciation on investments ................. 58,258,282
------------
NET ASSETS FOR 13,798,165 SHARES OUTSTANDING ............... $221,861,690
============
NET ASSET VALUE, OFFERING, AND REDEMPTION
PRICE PER SHARE ($221,861,690/13,798,165
outstanding shares of beneficial interest,
$0.01 par value) ........................................ $16.08
======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE
SIX-MONTH PERIOD
ENDED JUNE 30, 2000
-------------------
INVESTMENT INCOME:
Dividends ............................................... $ 151,607
Interest ................................................ 162,003
-----------
Total Income ............................................ 313,610
-----------
EXPENSES:
Advisory fee ............................................ 1,005,470
Accounting fee (Note 4) ................................. 40,000
Administration fee (Note 4) ............................. 115,590
Transfer agent fee ...................................... 17,310
Custodian fee ........................................... 13,601
Audit ................................................... 5,509
Legal ................................................... 5,243
Shareholder reports ..................................... 12,052
Registration fee ........................................ 6,732
Trustee's fees .......................................... 9,743
Amortization of organizational expense .................. 2,892
Miscellaneous ........................................... 11,655
-----------
Total expenses ....................................... 1,245,797
-----------
NET INVESTMENT LOSS ........................................ (932,187)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions ............ 29,262,847
Net change in unrealized appreciation (depreciation)
of investments ....................................... 8,820,769
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS ............ 38,083,616
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ....... $37,151,429
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX-MONTH PERIOD FOR THE FISCAL
ENDED JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
------------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss .......................................... $ (932,187) $ (1,595,699)
Net realized gain (loss) on investment transactions .......... 29,262,847 (10,898,308)
Change in net unrealized appreciation (depreciation)
on investments ............................................ 8,820,769 20,242,609
------------ ------------
Net increase in net assets resulting from operations ...... 37,151,429 7,748,602
------------ ------------
SHARE TRANSACTIONS (A):
Receipt from shares sold ..................................... 1,675,906 11,587,727
Receipt from securities transferred in-kind .................. -- 439,086
Shares redeemed .............................................. (12,255,870) (62,024,827)
------------ ------------
Net decrease in net assets from Fund share
transactions ........................................... (10,579,964) (49,998,014)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ......................... 26,571,465 (42,249,412)
NET ASSETS:
Beginning of period .......................................... 195,290,225 237,539,637
------------ ------------
End of period ................................................ $221,861,690 $195,290,225
============ ============
(A) TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST WERE:
Shares sold .................................................. 113,477 958,049
Shares issued in exchange for securities transferred
in kind (Note 2) .......................................... -- 40,431
Shares redeemed .............................................. (873,093) (5,215,705)
------------ ------------
Net decrease in shares ....................................... (759,616) (4,217,225)
Shares outstanding - Beginning balance ....................... 14,557,781 18,775,006
------------ ------------
Shares outstanding - Ending balance .......................... 13,798,165 14,557,781
============ ============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
FOR THE
SIX-MONTH FOR THE PERIOD
PERIOD ENDED FOR THE FISCAL FOR THE FISCAL APRIL 11, 1997+
JUNE 30, 2000 YEAR ENDED YEAR ENDED THROUGH
(UNAUDITED) DECEMBER 31, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997
------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Net asset value at beginning of
period ....................................... $13.41 $12.65 $13.70 $10.00
====== ====== ====== ======
INVESTMENT OPERATIONS
Net investment loss ............................. (0.07) (0.11) (0.07) (0.04)
Net realized and unrealized
gain (loss) on investments ................... 2.74 0.87 (0.98) 4.66
------ ------ ------ ------
Total from investment
operations ............................. 2.67 0.76 (1.05) 4.62
------ ------ ------ ------
DISTRIBUTIONS
From net realized gain on
investments .................................. -- -- -- (0.57)
In excess of net realized gain on
investments .................................. -- -- -- (0.35)
------ ------ ------ ------
Total distributions ....................... -- -- -- (0.92)
------ ------ ------ ------
Net asset value at end of period ................ $16.08 $13.41 $12.65 $13.70
====== ====== ====== ======
Total return .................................... 19.91% 6.01% (7.66)% 46.35%
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL DATA:
Expenses ..................................... 1.24%* 1.25% 1.24% 1.25%*++
Net investment income ........................ (0.92)%* (0.78)% (0.52)% (0.51)%*++
Portfolio turnover rate ......................... 28.19% 52.49% 27.41% 34.39%
Net assets at end of period
(000 omitted) ................................ $221,862 $195,290 $237,540 $226,706
<FN>
* Annualized.
+ Commencement of Operations.
++ Rodney Square Management Corporation, the Fund's prior administrator and
accounting agent, waived a portion of its administration and accounting fees
for the period ended December 31, 1997. If these expenses had been incurred
by the Fund, the annualized ratio of expenses to average daily net assets
for the period ended December 31, 1997 would have been 1.32%.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. DESCRIPTION OF THE FUND. The Kalmar "Growth-With-Value" Small Cap Fund (the
"Fund") is the first series of Kalmar Pooled Investment Trust (the "Trust"), a
Delaware business trust organized on September 30, 1996. The Fund is registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end diversified management investment company. The investment objective of
the Fund is long-term capital appreciation. The Fund commenced investment
operations on April 11, 1997.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the signifi-
cant accounting policies of the Fund.
SECURITY VALUATION. The Fund's securities, except short-term investments with
remaining maturities of 60 days or less, are valued at their market value as
determined by their last sale price in the principal market in which these
securities are normally traded. Lacking any sales, the security will be valued
at the mean between the closing bid and ask price. Short-term investments with
remaining maturities of 60 days or less are valued at amortized cost, which
approximates market value, unless the Trust's Board of Trustees determines that
this does not represent fair value. The value of all other securities is
determined in good faith under the direction of the Board of Trustees. There
were no such securities valued by the Board of Trustees on June 30, 2000.
FEDERAL INCOME TAXES. The Fund intends to continue to qualify for treatment as a
"regulated investment company" under Subchapter M of the Internal Revenue Code
of 1986, as amended (the "Internal Revenue Code"), and to distribute all of its
taxable income to its shareholders. Therefore, no federal income tax provision
has been provided.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions of any net investment income and
any net realized gains will be made annually. Additional distributions may be
made to the extent necessary to avoid the payment of a 4% excise tax. The
amounts of dividends from net investment income and of distributions from net
realized gains are determined in accordance with Federal income tax regulations,
which may differ from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the composition of net assets based on their Federal tax-basis treatment;
temporary differences do not require reclassification. At December 31, 1999, a
net investment loss of $1,595,699 and a $11,343,032 book realized capital loss
was reclassified into paid in capital. The $11,343,032 book realized capital
loss reclassified into paid in capital was due to a permanent difference between
the tax realized capital gain of $444,724 and book realized capital loss of
$10,898,308. This permanent difference was the result of securities being sold
that had a permanent book and tax cost basis difference, which was caused by
transfers in-kind (see "transfers in-kind"). The Fund has capital loss
carryforwards of $1,199,555 and $39,155, which expire on December 31, 2006 and
December 31, 2007, respectively, available to offset future capital gains.
Dividends and distributions to shareholders which exceed net investment income
and net realized gains for financial reporting purposes but not for tax purposes
are reported as dividends in excess of net investment income or distributions in
excess of net realized gains. To the extent they exceed net investment income
and net realized gains for tax purposes, they are reported as distributions of
capital.
DEFERRED ORGANIZATION COSTS. Costs incurred by the Fund in connection with its
organization have been deferred and are being amortized using the straight-line
method over a five-year period beginning on the date that the Fund commenced
operations. In the event that any of the initial shares of the Fund are redeemed
during the amortization period by any holder thereof, the redemption proceeds
will be reduced by any unamortized organization expenses in the same proportion
as the number of initial shares being redeemed bears to the number of initial
shares outstanding at the time of such redemption.
12
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. 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
revenue and expenses during the reporting period. Actual results could differ
from those estimates.
TRANSFERS IN-KIND. The Fund allows shareholders to transfer securities in
exchange for Fund shares. These exchanges are conducted on a taxable basis,
whereby for both generally accepted accounting principles and tax purposes the
cost of the securities transferred in-kind to the Fund is equal to the market
value of such securities on their respective dates of contribution to the Fund.
Upon the Fund's commencement of investment operations, a number of separately
managed accounts managed by Kalmar Investment Advisers, transferred appreciated
securities in exchange for Fund shares. These exchanges were conducted on a tax
free basis, whereby for purposes of generally accepted accounting principles,
the book cost of any securities transferred in-kind to the Fund is equal to the
market value of such securities on their respective dates of contribution to the
Fund. For tax purposes, the cost of those securities transferred in-kind to the
Fund is equal to the historical cost of those securities to the contributing
party. The result is a permanent difference between book cost and tax cost to
the Fund. This permanent book/tax difference will cause a difference in book
realized capital gains and losses and tax realized capital gains and losses.
These differences will be reclassified into paid in capital.
OTHER. Investment security transactions are accounted for on a trade date basis.
The Fund uses the specific identification method for determining realized gain
or loss on investments for both financial and Federal income tax reporting
purposes. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on an accrual basis.
3. PURCHASES AND SALES OF INVESTMENT SECURITIES. During the six-month period
ended June 30, 2000, purchases and sales of investment securities (excluding
short-term investments) aggregated as follows:
Purchases .................... $64,615,172
Sales ........................ 87,113,518
4. INVESTMENT ADVISORY FEE AND OTHER SERVICES. The Fund employs Kalmar
Investment Advisers as its investment adviser (the "Adviser"). Pursuant to an
Investment Advisory agreement with the Trust, on behalf of the Fund, the Adviser
selects investments and supervises the assets of the Fund in accordance with the
investment objective, policies and restrictions of the Fund, subject to the
supervision and direction of the officers and Board of Trustees of the Trust.
For its services, the Adviser is paid a monthly fee at the annual rate of 1.00%
of the Fund's average daily net assets.
PFPC Inc. ("PFPC") serves as administrator to the Trust. As Administrator, PFPC
is responsible for services such as budgeting, maintaining federal registration
of the Fund's shares, financial reporting, compliance monitoring and corporate
management.
PFPC determines the net asset value per share of the Fund and provides
accounting services to the Fund pursuant to an Accounting Services Agreement
with the Trust.
PFPC serves as transfer agent and dividend disbursing agent of the Fund pursuant
to a Transfer Agency Agreement with the Trust.
13
<PAGE>
KALMAR
POOLED
INVESTMENT
TRUST
----------
"GROWTH-WITH-VALUE"
SMALL CAP FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
PFPC Trust Company serves as Custodian of the assets of the Trust pursuant to a
Custody Agreement with the Trust.
Certain Trustees and officers of the Trust are also officers of the Adviser.
Such Trustees and officers are not paid any fees by the Trust for serving as
Trustees or officers of the Trust.
14
<PAGE>
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<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
INVESTMENT ADVISER
KALMAR INVESTMENT ADVISERS
BARLEY MILL HOUSE
3701 KENNETT PIKE
WILMINGTON, DE 19807
(WEBSITE)WWW.KALMARINVESTMENTS.COM
UNDERWRITER
PROVIDENT DISTRIBUTORS, INC.
3200 HORIZON DRIVE
KING OF PRUSSIA, PA 19406
SHAREHOLDER SERVICES
PFPC INC.
400 BELLEVUE PARKWAY
WILMINGTON, DE 19809
CUSTODIAN
PFPC TRUST COMPANY
THE EASTWICK CENTER
8800 TINICUM BLVD.
PHILADELPHIA, PA 19153
LEGAL COUNSEL
PEPPER HAMILTON LLP
3000 TWO LOGAN SQUARE
18TH & ARCH STREETS
PHILADELPHIA, PA 19103-2799
AUDITORS
PRICEWATERHOUSECOOPERS LLP
2400 ELEVEN PENN CENTER
PHILADELPHIA, PA 19103
<PAGE>
KALMAR POOLED INVESTMENT TRUST
BARLEY MILL HOUSE
3701 KENNETT PIKE
WILMINGTON, DE 19807
(PHONE) 302-658-7575
(FAX) 302-658-7513
(WEBSITE)WWW.KALMARINVESTMENTS.COM
KL06 - 6/00
