Semi-Annual Report to Shareholders
Monument Series Fund, Inc.
Monument Internet Fund
Monument Medical Sciences Fund
Monument Washington Aggressive Growth Fund
For the Period Ended
April 30, 1999
MONUMENT INTERNET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1999
(Unaudited)
Number
of Security Market
Shares Description Value
- -------- ------------------ ---------
Common Stock: 96.69%
Access: 14.80%
10,000 At Home* $1,439,375
6,000 Equant, N.V.* 535,500
8,000 MCI Worldcom* 657,500
10,500 Pacific Interne t* 833,438
19,000 PSI Net* 959,500
9,000 Verio* 639,000
14,000 Winstar* 680,750
15,500 Qwest* 1,324,281
---------
7,069,344
---------
E-Commerce: 19.26%
8,800 Amazon.com* 1,514,150
7,000 AmeriTrade* 934,938
25,300 Beyond.com* 744,769
15,000 CD Now, Inc.* 290,625
8,000 Charles Schwab 878,000
6,500 E*Trade Group* 750,750
6,200 eBay* 1,290,375
20,000 Egghead.com, Inc.* 280,000
15,500 Intraware* 474,688
2,000 Net@Bank* 378,000
25,000 Preview Travel Inc.* 650,000
9,500 Sabre Group Holding A* 495,188
5,000 Telebanc Financial Corp* 518,125
---------
9,199,608
---------
Hub/Virtual Community: 14.83%
10,800 America Online* 1,541,700
16,000 Cnet* 2,056,000
25,000 Mediconsult Com, Inc.* 298,438
4,500 VerticalNet* 510,750
7,500 Xoom.com* 525,000
12,300 Yahoo* 2,148,656
---------
7,080,544
---------
Infrastructure: 12.87%
11,500 Aware, Inc.* 638,969
11,000 Broadcom* 848,375
9,600 Cisco* 1,095,000
20,000 Compaq 446,250
15,000 Cybercash* 249,375
21,100 Entrust Techs.* 519,588
15,000 Intel Corp. 917,813
11,000 Network Solutions A* 855,250
5,000 Verisign* 575,000
---------
6,145,620
---------
Internet Technology: 19.86%
20,000 Artificial Life,Inc.* 360,000
20,600 Broadvision* 1,196,088
7,500 Vignette* 712,500
12,000 Microsoft Corp.* 975,750
10,500 Net Perceptions Inc.* 276,937
27,000 Netspeak* 307,125
27,000 Open Market,Inc.* 327,375
15,000 Onyx Software* 350,625
7,250 Real Networks* 1,605,875
31,000 Sagent Technology* 294,500
16,700 Security First Tech.* 1,988,343
18,200 Sun Microsystems* 1,088,587
---------
9,483,705
---------
Media/Content: 2.26%
4,100 Broadcast.com* 525,825
35,000 Ziff Davis Inc.* 553,437
---------
1,079,262
---------
Services: 12.81%
12,500 24/7 Media* 556,250
8,200 CMG Information Services* 2,087,412
9,200 Doubleclick* 1,286,275
20,700 Netgravity* 837,055
30,100 Proxicom Inc.* 675,368
30,000 US Web* 673,125
----------
6,115,485
----------
Total Common Stock: 46,173,568
(Cost:$41,979,982) ----------
Short-term Invetsments: 4.39%
2,099,771 Star Treasury Fund $2,099,771
(Cost:$2,099,771) ----------
Total Investments:
(Cost:$44,079,753) 101.08% $48,273,339
Other assets, net (1.08)% (517,605)
=====================
Net Assets 100.00% $47,755,734
=====================
* Non-income producing
** Cost for Federal income tax purposes is $44,079,753 and net unrealized
appreciation consists of:
Gross unrealized appreciation $6,890,164
Gross unrealized depreciation (2,696,578)
==========
Net unrealized appreciation $4,193,586
==========
See Notes to Financial Statements
MONUMENT INTERNET FUND
Statement of Assets and Liabilities
April 30, 1999(Unaudited)
- ---------------------------------------------------------
ASSETS
Investments at value $48,273,339
(identified cost of $44,079,753)(Notes 1 & 3)
Capital stock sold 1,348,602
Interest receivable 8,257
Prepaid expenses 27,012
Other assets 36,982
-------------
TOTAL ASSETS 49,694,192
-------------
LIABILITIES
Investments purchased $1,883,391
Investment managementfees 29,144
12b-1 fees 14,740
Accrued expenses 11,183
--------
TOTAL LIABILITIES 1,938,458
-------------
NET ASSETS $47,755,734
=============
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($47,755,734/1,608,674 shares outstanding) $29.69
=============
OFFERING PRICE ($29.69 x 100/95.25) $31.17
=============
Net assets consist of:
Paid in capital $42,378,937
Net investment loss (62,979)
Accumulated undistributed realized
gain on investments 1,246,190
Net unrealized appreciation
on investments 4,193,586
-------------
Net Assets $47,755,734
=============
See Notes to Financial Statements
MONUMENT INTERNET FUND
Statement of Operations
Period ended April 30, 1999*(Unaudited)
- -----------------------------------------------------------------------
INVESTMENT INCOME
Interest $13,438
EXPENSES
Investment management fees (Note 2) $40,220
12b-1 fee (Note 2) 20,110
Recordkeeping and administrative
services 8,044
Custodian and accounting fees 12,284
Registration fees 11,834
Transfer agent fees 13,325
Insurance 2,044
Directors fees 1,333
Shareholder servicing and reports 4,205
-----------
Total expenses 113,399
Reimbursed expenses (Note 2) (36,982)
-----------
Expenses, net 76,417
-----------
Net investment loss (62,979)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 1,246,190
Net change in unrealized
appreciation on investments 4,193,586
------------
Net gain on investments 5,439,776
------------
Net increase in net assets
resulting from operations $5,376,797
===========
*Commencement of operations November 16, 1998
See Notes to Financial Statements
MONUMENT INTERNET FUND
Statement of Changes in Net Assets
- -----------------------------------------------------------
Period
ended
April 30, 1999*
(Unaudited)
---------------
OPERATIONS
Net investment loss ($62,979)
Net realized gain on investments 1,246,190
Net change in unrealized
appreciation of investments 4,193,586
-----------
Net increase in net assets
resulting from operations 5,376,797
CAPITAL SHARE TRANSACTIONS
Net increase in net assets
resulting from capital share
transactions** 42,378,937
----------
Net increase in net assets 47,755,734
Net assets at beginning of period 0
----------
NET ASSETS at the end of period $47,755,734
==========
**A summary of capital share transactions follows:
Period ended
April 30, 1999*
(Unaudited)
-----------------------
Shares Value
-----------------------
Shares sold 1,722,827 $45,346,448
Shares reinvested from
distributions - -
Shares redeemed (114,153) (2,967,511)
-----------------------
Net increase 1,608,674 $42,378,937
=======================
*Commencement of operations November 16, 1998
See Notes to Financial Statements
MONUMENT INTERNET FUND
Financial Highlights
For a Share Outstanding Throughout The Period
- ------------------------------------------------------
Period
ended
April 30, 1999*
(Unaudited)
------------
Per Share Operating
Performance
Net asset value, beginning of period $10.00
---------
Income from investment operations-
Net investment loss (0.04)
Net realized and unrealized
gain on investments 19.73
---------
Total from investment operations 19.69
---------
Net asset value, end of period $29.69
=========
Total Return 196.90%
Ratios/Supplemental Data
Net assets, end of period (000's) $47,756
Ratio to average net assets-(A)
Expenses 2.32% **
Expenses-net 1.90% **
Net investment loss (0.71)% **
Portfolio turnover rate 45.69% **
* Commencement of operations November 16, 1998
** Annualized
(A) Expense reimbursements reduced the expense ratio and reduced the net
investment loss by 0.42%.
See Notes to Financial Statements
Monument Internet Fund
Notes to Financial Statements
Note 1-SIGNIFICANT ACCOUNTING POLICIES- Monument Internet Fund (the
"Internet Fund") is a series of Monument Series Fund, Inc. ("MSF")
which is registered under the Investment Company Act of 1940, as
amended, as a non-diversified open-end management company. The Fund was
established on November 16, 1998 as a series of MSF which has allocated
250,000,000 shares of its 2,000,000,000 shares of $.001 par value
common stock.
The following is a summary of significant accounting policies followed
by the Internet Fund. The policies are in conformity with generally
accepted accounting principles.
A. Use of Estimates- The process of preparing financial statements in
conformity with generally accepted accounting principles require
management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosures of contingent assets
and liabilities at the date of the financial statements, as well as the
reported amounts of revenue and expenses during the reporting period.
Actual results could differ from these estimates.
B. Investment Valuation- Equity securities listed on an established
securities exchange or on the NASDAQ National Market System are value at
their last sale price on the exchange where primarily traded or, if
there is no reported sale, at the mean between the closing bid and asked
price on that day. Over-the-counter portfolio securities are value at
the mean between the last bid and asked prices based upon quotes
furnished by market markers for such securities. Exchange listed
convertible debt securities are value at the mean between the last bid
and asked prices obtained from broker-dealers or a comparable
alternative, such as Bloomberg or Telerate.
Other securities for which market quotes are readily available are
valued at the current market price, which may be obtained from a pricing
service. Securities and other assets for which market prices are not
readily available are valued at fair value as determined following
procedures approved by the Board of Directors.
C. Investment Transactions- All securities are recorded on a trade
date basis. Dividend income is recorded on the ex-dividend date and
interest income is recorded on the accrual basis. Realized gains and
losses on sales of securities are determined on the basis of identified
cost.
D. Federal Income Taxes- The Internet Fund is treated as a separate
entity for Federal tax purposes. The Internet Fund intends to qualify
each year as a regulated investment company under Subchapter M of the
Internal Revenue Code, as amended. By so qualifying, the Internet Fund
will not be subject to Federal income taxes to the extent that it
distributes all taxable income, including realized capital gains. In
addition, by distributing during each calendar year substantially all
net investment income, capital gains and certain other amounts, if any,
the Internet Fund will not be subject to a Federal income excise tax.
E. Dividends and Distributions to Shareholders- The Internet Fund
intends to pay an annual dividend to shareholders of record representing
its entire net investment income and to distribute all of its realized
net capital gains at least annually. Distributions are recorded on the
ex-dividend date. Income distributions and capital gains distributions
are determined in accordance with Federal income tax regulations, which
may differ from generally accepted accounting principles.
Note 2-INVESTMENT MANAGEMENT AND DISTRIBUTION AGREEMENTS- Monument Advisors,
Ltd. ("Monument Advisors"), a wholly-owned subsidiary of the Monument
Group, Inc. has been retained under an Investment Advisory Agreement
(the "Advisory Agreement") to supervise the management and the
investment program of the Internet Fund. As full compensation for its
services under the Agreement, the Internet Fund will pay the Advisor a
monthly fee, equal to an annualized rate of 1.00% of the monthly average
net assets through $50 million in net assets; 0.75% of the monthly
average net assets greater than $50 million through $100 million in net
assets; and 0.625% of the average monthly net assets exceeding $100
million in net assets.
The Internet Fund has adopted a plan pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended, whereby the Internet Fund or
Monument Distributors, Inc. ("Monument Distributors") may finance
activities which are primarily intended to result in the sale of the
Internet Fund's shares, including, but not limited to, advertising,
printing of prospectuses and reports for other than existing
shareholders, preparation and distribution of advertising materials and
sales literature, and payments to dealers and shareholders servicing
agents who enter into agreements with the Internet Fund or Monument
Distributors. The Internet Fund may incur such distribution expenses at
the rate of .50% per annum on its average net assets. For the period
ended April 30, 1999 the Internet Fund paid $5,370 for such expenses.
The Advisor has voluntarily agreed to pay operating expenses of the
Internet Fund to maintain total operating expenses to 1.90% of average
daily net assets. For the period ended April 30, 1999, Monument Advisors
has reimbursed, or has agreed to reimburse, the Fund $36,982. This
voluntary reimbursement may be terminated at any time without notice.
Note 3-INVESTMENTS- Purchases and sales of securities for the Internet Fund,
other than short-term investments aggregated $46,152,084 and $5,251,917
respectively.
MONUMENT MEDICAL SCIENCES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1999
(Unaudited)
Number
of Security Market
Shares Description Value
- -------- ------------------ ------
Common Stock: 22.22%
Computer Hardware: 2.23%
200 Harris Corp. $6,913
------
Computer Services: 2.59%
150 EDS Service 8,063
------
Computer Software: 0.64%
150 Network Associates* 1,987
------
Electronics: 3.77%
500 Ciena Corp.* 11,750
------
Pharmaceuticals: 3.54%
200 Meddimune* 11,025
------
Retail: 3.95%
200 Circuit City Stores 12,300
------
Telecommunications: 5.49%
200 Qwest Comm. Int'l* 17,087
------
Total Common Stock: 69,125
(Cost:$55,533) ------
Short-Term Investments: 15.42%
47,998 Star Treasury Fund $47,998
(Cost:$47,998) ------
Total Investments:
(Cost:$103,531) 37.63% $117,123
Other assets, net 62.37% 194,145
================
Net Assets 100.00% $311,268
================
* Non-income producing
** Cost for Federal income tax purposes is $103,531 and net unrealized
appreciation consists of:
Gross unrealized appreciation $19,698
Gross unrealized depreciation (6,106)
========
Net unrealized appreciation $13,592
========
See Notes to Financial Statements
MONUMENT MEDICAL SCIENCES FUND
Statement of Assets and Liabilities
April 30, 1999 (Unaudited)
- ------------------------------------------------------
ASSETS
Investments at value $117,123
(identified cost of $103,531)(Notes 1 & 3)
Receivables
Dividend $41
Interest 180
-------
221
Securities sold 143,034
Prepaid expenses 3,702
Deferred organization costs (Note 1) 66,298
-----------
TOTAL ASSETS 330,378
-----------
LIABILITIES
Investment management fees (Note 2) 1,609
12b-1 fees (Note 2) 170
Accrued expenses 6,583
Liability to manager 10,748
-------
TOTAL LIABILITIES 19,110
----------
NET ASSETS $311,268
==========
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($311,268/22,003 shares outstanding) $14.14
==========
OFFERING PRICE ($14.14 x 100/95.25) $14.85
==========
Net assets consist of:
Paid in capital $242,139
Accumulated net investment loss (722)
Accumulated undistributed realized
gain on investments 56,259
Net unrealized appreciation
on investments 13,592
-----------
Net Assets $311,268
===========
See Notes to Financial Statements
MONUMENT MEDICAL SCIENCES FUND
Statement of Operations
Period ended April 30, 1999 (Unaudited)
- ----------------------------------------------------
INVESTMENT INCOME
Dividends $490
Interest 304
-------
Total income $794
EXPENSES
Investment management fees (Note 2) 1,304
12b-1 fee (Note 2) 456
Recordkeeping and administrative
services 8,632
Legal and audit fees 8,000
Custodian and accounting fees 8,144
Registration fees 2,987
Transfer agent fees 5,853
Organization cost amortization 8,916
Insurance 1,569
Directors fees 1,333
Shareholder servicing and reports 829
-------
Total expenses 48,023
Reimbursed expenses (Note 2) (45,741)
--------
Expenses, net 2,282
--------
Net investment loss (1,488)
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 70,127
Net change in unrealized appreciation on investments 10,350
-------
Net gain on investments 80,477
-------
Net increase in net assets resulting from operations $78,989
=======
See Notes to Financial Statements
MONUMENT MEDICAL SCIENCES FUND
Statement of Changes in Net Assets
- -------------------------------------------------------------------------
Period
ended Period
April 30,1999 ended
(Unaudited) October 31,1998*
-------------------------------
OPERATIONS
Net investment income (loss) ($1,488) $766
Net realized gain (loss) on
investments 70,127 (13,868)
Net change in unrealized appreciation
of investments 10,350 3,242
--------------------------
Net increase (decrease) in net assets
resulting from operations 78,989 (9,860)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets
resulting from capital
share transactions** 17,830 173,809
---------------------------
Net increase in net assets 96,819 163,949
Net assets at beginning of period 214,449 50,500
---------------------------
NET ASSETS at the end of period $311,268 $214,449
===========================
**A summary of capital share transactions follows:
Period
ended Period
April 30, 1999 ended
(Unaudited) October 31, 1998*
-----------------------------------------
Shares Value Shares Value
-----------------------------------------
Shares sold 2,879 $39,667 20,023 $220,013
Shares reinvested from
dividends - - - -
Shares redeemed (1,660) (21,837) (4,290) (46,204)
-----------------------------------------
Net increase 1,219 $17,830 15,733 $173,809
=========================================
* Commencement of operations January 6, 1998
See Notes to Financial Statements
MONUMENT MEDICAL SCIENCES FUND
Financial Highlights
For a Share Outstanding Throughout The Period
- -----------------------------------------------------
Period
ended Period
April 30,1999 ended
(Unaudited) October 31, 1998*
------------- -----------------
Per Share Operating
Performance
Net asset value,
beginning of period $10.32 $10.00
------- --------
Income from investment
operations-
Net investment income (loss) (0.07) 0.04
Net realized and unrealized
gain on investments 3.89 0.28
------- --------
Total from investment operations 3.82 0.32
-------- --------
Net asset value, end of period $14.14 $10.32
======== ========
Total Return 37.02% 3.20%
Ratios/Supplemental Data
Net assets, end of period (000's) $311 $214
Ratio to average net assets- (A)
Expenses 34.07% ** 51.07% **
Expenses-net 1.75% ** 0.00%
Net investment income (loss) (1.14)% ** 0.66% **
Portfolio turnover rate 34.19% ** 82.00% **
* Commencement of operations January 6, 1998
** Annualized
(A) Management fee waivers and expense reimbursements reduced the expense
ratios and increased net investment income ratio by 32.32% and 51.07% in
1999 and 1998, respectively.
See Notes to Financial Statements
Monument Medical Sciences Fund
Notes to Financial Statements
Note 1-SIGNIFICANT ACCOUNTING POLICIES- Monument Medical Sciences Fund (the
"Medical Sciences Fund") (formerly the Monument Washington Regional
Growth Fund) is a series of Monument Series Fund, Inc. ("MSF") which is
registered under the Investment Company Act of 1940, as amended, as a
non-diversified open-end management company. The Medical Sciences Fund
was established on January 6, 1998 as a series of MSF which has
allocated 250,000,000 shares of its 2,000,000,000 shares of $.001 par
value common stock.
The following is a summary of significant accounting policies followed
by the Medical Sciences Fund. The policies are in conformity with
generally accepted accounting principles.
A. Use of Estimates- The process of preparing financial statements in
conformity with generally accepted accounting principles require
management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosures of contingent assets
and liabilities at the date of the financial statements, as well as the
reported amounts of revenue and expenses during the reporting period.
Actual results could differ from these estimates.
B. Investment Valuation- Equity securities listed on an established
securities exchange or on the NASDAQ National Market System are value at
their last sale price on the exchange where primarily traded or, if
there is no reported sale, at the mean between the closing bid and asked
price on that day. Over-the-counter portfolio securities are value at
the mean between the last bid and asked prices based upon quotes
furnished by market markers for such securities. Exchange listed
convertible debt securities are value at the mean between the last bid
and asked prices obtained from broker-dealers or a comparable
alternative, such as Bloomberg or Telerate.
Other securities for which market quotes are readily available are
valued at the current market price, which may be obtained from a pricing
service. Securities and other assets for which market prices are not
readily available are valued at fair value as determined following
procedures approved by the Board of Directors.
C. Investment Transactions- All securities are recorded on a trade
date basis. Dividend income is recorded on the ex-dividend date and
interest income is recorded on the accrual basis. Realized gains and
losses on sales of securities are determined on the basis of identified
cost.
D. Organization Expenses- All expenses incurred in connection with the
organization and initial registration have been assumed by the series of
MSF. The organizational expenses allocable to the Medical Sciences Fund
are being amortized over a period of sixty months from the date it
commenced investment operations. The Medical Sciences Fund has agreed
with the Investment Advisor that if any of the initial shares are
redeemed during the amortization period, the Medical Sciences Fund will
reduce the redemption proceeds for the then unamortized organizational
expenses in the same ratio as the number of redeemed shares bears to the
number of initial shares at the time of such redemption.
E. Federal Income Taxes- The Medical Sciences Fund is treated as a
separate entity for Federal tax purposes. The Medical Sciences Fund
intends to qualify each year as a regulated investment company under
Subchapter M of the Internal Revenue Code, as amended. By so
qualifying, the Medical Sciences Fund will not be subject to Federal
income taxes to the extent that it distributes all taxable income,
including realized capital gains. In addition, by distributing during
each calendar year substantially all net investment income, capital
gains and certain other amounts, if any, the Medical Sciences Fund will
not be subject to a Federal income excise tax.
F. Dividends and Distributions to Shareholders- The Medical Sciences
Fund intends to pay an annual dividend to shareholders of record
representing its entire net investment income and to distribute all of
its realized net capital gains at least annually. Distributions are
recorded on the ex-dividend date. Income distributions and capital
gains distributions are determined in accordance with Federal income tax
regulations, which may differ from generally accepted accounting
principles.
Note 2-INVESTMENT MANAGEMENT AND DISTRIBUTION AGREEMENTS- Monument Advisors,
Ltd. ("Monument Advisors"), a wholly-owned subsidiary of the Monument
Group, Inc. has been retained under an Investment Advisory Agreement
(the "Advisory Agreement") to supervise the management and the
investment program of the Medical Sciences Fund. As full compensation
for its services under the Agreement, Medical Sciences Fund will pay
the Advisor a monthly fee, equal to an annualized rate of 1.00% of the
monthly average net assets through $50 million in net assets; 0.75% of
the monthly average net assets greater than $50 million through $100
million in net assets; and 0.625% of the average monthly net assets
exceeding $100 million in net assets.
The Medical Sciences Fund has adopted a plan pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended, whereby the
Medical Sciences Fund or Monument Distributors, Inc. ("Monument
Distributors") may finance activities which are primarily intended to
result in the sale of the Medical Sciences Fund's shares, including, but
not limited to, advertising, printing of prospectuses and reports for
other than existing shareholders, preparation and distribution of
advertising materials and sales literature, and payments to dealers and
shareholders servicing agents who enter into agreements with the Medical
Sciences Fund or Monument Distributors. The Medical Sciences Fund may
incur such distribution expenses at the rate of .50% per annum on its
average net assets. For the period ended April 30, 1999 the Medical
Sciences Fund paid $286 for such expenses.
Monument Advisors has contractually agreed to waive its fees and to pay
expenses of the Medical Sciences Fund to maintain total operating
expenses to 1.90% of average daily net assets through May 1, 2001. For
the period ended April 30, 1999, expense reimbursements were $45,741.
As of April 30, 1999, Mr. David A. Kugler (controlling shareholder of
Monument Distributors) has a beneficial ownership of 6.5% of the Medical
Sciences Fund. As of that date, Mr. Kugler owned 2.4% of the Medical
Sciences Fund. The remainder of Mr. Kugler's beneficial ownership
(4.1%) was due to his ownership interest in Monument Distributors. As
of April 30, 1999, Monument Distributors owned 4.3% of the Medical
Sciences Fund.
Note 3-INVESTMENTS- Purchases and sales of securities for the Medical
Sciences Fund, other than short-term investments aggregated $67,978 and
$299,174, respectively.
MONUMENT WASHINGTON AGGRESSIVE GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1999
(Unaudited)
Number
of Security Market
Shares Description Value
- --------- --------------- -------
Common Stock: 55.60%
Electronics: 1.80%
100 Harman Intl Industries $4,594
-------
Information
Technology Services: 4.05%
200 RWD Technologies, Inc.* 3,450
200 American Management Systems* 6,875
-------
10,325
-------
Computer Software: 6.43%
400 JDA Software 3,175
300 Manugistics Group, Inc.* 2,363
170 Microstrategy Inc. 2,933
300 Axent Technologies, Inc.* 2,813
200 Best Software, Inc.* 2,588
100 Deltek Systems, Inc.* 863
200 Software AG Systems, Inc.* 1,650
-------
16,385
-------
Education/Educational
Services: 1.97%
200 Sylvan Learning Systems,Inc 5,025
-------
Semiconductors: 3.51%
500 CFM Technologies 4,375
200 Kulicke & Soffa 4,574
-------
8,949
-------
Banks & Financial
Services: 8.13%
200 Telebanc Fianancial Corp* 20,725
-------
Biotech: 9.80%
800 Gene Logic Inc. 3,400
200 IGEN International, Inc.* 5,024
300 Medimmune, Inc.* 16,538
-------
24,962
-------
Healthcare &
Pharmaceutical: 6.21%
250 Sunrise Assisted Living Inc.* 10,000
200 Pharmaceutical Product
Development, Inc.* 5,824
-------
15,824
-------
Telecommunications: 13.69%
100 Comsat Corporation 3,250
200 Teligent Inc. 10,874
200 Visual Networks, Inc.* 5,613
300 PSINet, Inc.* 15,150
-------
34,887
-------
Total Common Stock: 141,676
(Cost:$116,694) -------
Short-term Investment: 20.26%
51,616 Star Treasury Fund $51,616
(Cost:$51,616) -------
Total Investments:
(Cost:$168,310)** 75.86% $193,292
Other assets,net 24.14% 61,514
===================
Net Assets 100.00% $254,806
===================
* Non-income producing
** Cost for Federal income tax purposes is $168,310 and net unrealized
appreciation/depreciation consists of:
Gross unrealized appreciation $ 50,800
Gross unrealized depreciation (25,818)
=======
Net unrealized appreciation $24,982
=======
See Notes to Financial Statements
MONUMENT WASHINGTON AGGRESSIVE GROWTH FUND
Statement of Assets and Liabilities
April 30,1999 (Unaudited)
- --------------------------------------------------------
ASSETS
Investments at value $193,292
(identified cost of $168,310)(Notes 1 & 3 )
Interest receivable 50
Prepaid expenses 3,702
Deferred organization cost (Note 1) 66,298
-------------
TOTAL ASSETS 263,342
-------------
LIABILITIES
Investment management fees (Note 2) $1,371
12b-1 fees (Note 2) 131
Accrued expenses 6,583
Liability to Manager 451
-------
TOTAL LIABILITIES 8,536
-------------
NET ASSETS $254,806
=============
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($254,806/19,032 shares outstanding) $13.39
=============
OFFERING PRICE ($13.39 x 100/95.25) $14.06
=============
Net assets consist of:
Paid in capital $211,355
Accumulated net investment loss (818)
Accumulated undistributed realized
gain on investments 19,287
Net unrealized appreciation of investments 24,982
------------
Net Assets $254,806
============
See Notes to Financial Statements
MONUMENT WASHINGTON AGGRESSIVE GROWTH FUND
Statement of Operations
Period ended April 30, 1999 (Unaudited)
- ---------------------------------------------------------------------
INVESTMENT INCOME
Income:
Dividends $31
Interest 286
----------
Total income $317
EXPENSES
Investment management fees (Note 2) 1,056
12b-1 fee (Note 2) 362
Recordkeeping and administrative services 8,630
Legal and audit fees 8,000
Custodian and accounting fees 8,144
Registration fees 13,501
Transfer agent fees 5,801
Organization cost amortization 8,916
Insurance 1,569
Directors fees 1,333
Shareholder servicing and reports 697
-----------
Total expenses 58,009
Reimbursed expenses (Note 2) (56,168)
----------
Expenses, net 1,841
----------
Net investment loss (1,524)
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 27,943
Net change in unrealized appreciation on investments 19,824
-----------
Net gain on investments 47,767
-----------
Net increase in net assets resulting from operations $46,243
===========
See Notes to Financial Statements
MONUMENT WASHINGTON AGGRESSIVE GROWTH FUND
Statement of Changes in Net Assets
- -------------------------------------------------------------------------
Period
ended Period
April 30, 1999 ended
(Unaudited) October 31,1998*
--------------------------------
OPERATIONS
Net investment income (loss) ($1,524) $706
Net realized gain (loss) on investments 27,943 (8,657)
Net change in unrealized appreciation
of investments 19,824 5,158
--------- --------
Net increase (decrease) in net assets
resulting from operations 46,243 (2,793)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets resulting
from capital share transactions** 27,404 134,452
---------- ----------
Net increase in net assets 73,647 131,659
Net assets at beginning of period 181,159 49,500
---------- ----------
NET ASSETS at the end of the period $254,806 $181,159
========== ==========
**A summary of capital share transactions follows:
Period
ended Period
April 30, 1999 ended
(Unaudited) October 31, 1998*
-----------------------------------------
Shares Value Shares Value
-----------------------------------------
Shares sold 6,662 $86,916 12,522 $141,837
Shares reinvested from
dividends - - - -
Shares redeemed (4,440) (59,512) (662) (7,385)
-----------------------------------------
Net increase 2,222 $27,404 11,860 $134,452
=========================================
* Commencement of operations January 6, 1998
See Notes to Financial Statements
MONUMENT WASHINGTON AGGRESSIVE GROWTH FUND
Financial Highlights
For a Share Outstanding Throughout The Period
- -----------------------------------------------------
Period
ended Period
April 30,1999 ended
(Unaudited) October 31, 1998*
-------------- -----------------
Per Share Operating
Performance
Net asset value,
beginning of period $10.78 $10.00
-------- ---------
Income from investment operations-
Net investment income (loss) (0.08) 0.04
Net realized and unrealized
gain on investments 2.69 0.74
-------- --------
Total from investment operations 2.61 0.78
-------- --------
Net asset value, end of period $13.39 $10.78
======== ========
Total Return 24.21% 7.80%
Ratios/Supplemental Data
Net assets, end of period (000's) $255 $181
Ratio to average net assets- (A)
Expenses 51.52% ** 58.25% **
Expenses-net 1.74% ** 0.00%
Net investment income (loss) (1.44)% ** 0.70% **
Portfolio turnover rate 28.78% ** 88.00% **
* Commencement of operations January 6, 1998
** Annualized
(A) Expense reimbursements reduced the expense ratios and increased the net
investment income (loss) ratio by 49.78% and 58.25% in 1999 and 1998,
respectively.
See Notes to Financial Statements
Monument Washington Aggressive Growth Fund
Notes to Financial Statements
Note 1-SIGNIFICANT ACCOUNTING POLICIES- Monument Washington Aggressive
Growth Fund (the "Growth Fund") (formerly the Monument Washington
Regional Aggressive Growth Fund) is a series of Monument Series Fund,
Inc. ("MSF") which is registered under the Investment Company Act of
1940, as amended, as a non-diversified open-end management company. The
Growth Fund was established on January 6, 1998 as a series of MSF which
has allocated 250,000,000 shares of its 2,000,000,000 shares of $.001
par value common stock.
The following is a summary of significant accounting policies followed
by the Growth Fund. The policies are in conformity with generally
accepted accounting principles.
A. Use of Estimates- The process of preparing financial statements in
conformity with generally accepted accounting principles require
management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosures of contingent assets
and liabilities at the date of the financial statements, as well as the
reported amounts of revenue and expenses during the reporting period.
Actual results could differ from these estimates.
B. Investment Valuation- Equity securities listed on an established
securities exchange or on the NASDAQ National Market System are value at
their last sale price on the exchange where primarily traded or, if
there is no reported sale, at the mean between the closing bid and asked
price on that day. Over-the-counter portfolio securities are value at
the mean between the last bid and asked prices based upon quotes
furnished by market markers for such securities. Exchange listed
convertible debt securities are value at the mean between the last bid
and asked prices obtained from broker-dealers or a comparable
alternative, such as Bloomberg or Telerate.
Other securities for which market quotes are readily available are
valued at the current market price, which may be obtained from a pricing
service. Securities and other assets for which market prices are not
readily available are valued at fair value as determined following
procedures approved by the Board of Directors.
C. Investment Transactions- All securities are recorded on a trade
date basis. Dividend income is recorded on the ex-dividend date and
interest income is recorded on the accrual basis. Realized gains and
losses on sales of securities are determined on the basis of identified
cost.
D. Organization Expenses- All expenses incurred in connection with the
organization and initial registration have been assumed by the series of
MSF. The organizational expenses allocable to the Growth Fund are being
amortized over a period of sixty months from the date it commenced
investment operations. The Growth Fund has agreed with the Investment
Advisor that if any of the initial shares are redeemed during the
amortization period, the Growth Fund will reduce the redemption proceeds
for the then unamortized organizational expenses in the same ratio as
the number of redeemed shares bears to the number of initial shares at
the time of such redemption.
E. Federal Income Taxes- The Growth Fund is treated as a separate
entity for Federal tax purposes. The Growth Fund intends to qualify
each year as a regulated investment company under Subchapter M of the
Internal Revenue Code, as amended. By so qualifying, the Growth Fund
will not be subject to Federal income taxes to the extent that it
distributes all taxable income, including realized capital gains. In
addition, by distributing during each calendar year substantially all
net investment income, capital gains and certain other amounts, if any,
the Growth Fund will not be subject to a Federal income excise tax.
F. Dividends and Distributions to Shareholders- The Growth Fund
intends to pay an annual dividend to shareholders of record representing
its entire net investment income and to distribute all of its realized
net capital gains at least annually. Distributions are recorded on the
ex-dividend date. Income distributions and capital gains distributions
are determined in accordance with Federal income tax regulations, which
may differ from generally accepted accounting principles.
Note 2-INVESTMENT MANAGEMENT AND DISTRIBUTION AGREEMENTS- Monument Advisors,
Ltd. ("Monument Advisors"), a wholly-owned subsidiary of the Monument
Group, Inc. has been retained under an Investment Advisory Agreement
(the "Advisory Agreement") to supervise the management and the
investment program of the Growth Fund. As full compensation for its
services under the Agreement, the Growth Fund will pay the Advisor a
monthly fee, equal to an annualized rate of 1.00% of the monthly average
net assets through $50 million in net assets; 0.75% of the monthly
average net assets greater than $50 million through $100 million in net
assets; and 0.625% of the average monthly net assets exceeding $100
million in net assets.
The Growth Fund has adopted a plan pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended, whereby the Growth Fund or
Monument Distributors, Inc. ("Monument Distributors") may finance
activities which are primarily intended to result in the sale of the
Growth Fund's shares, including, but not limited to, advertising,
printing of prospectuses and reports for other than existing
shareholders, preparation and distribution of advertising materials and
sales literature, and payments to dealers and shareholders servicing
agents who enter into agreements with the Growth Fund or Monument
Distributors. The Growth Fund may incur such distribution expenses at
the rate of .50% per annum on its average net assets. For the period
ended April 30, 1999 the Growth Fund paid $231 for such expenses.
Monument Advisors has contractually agreed to waive its fees and to pay
expenses of the Growth Fund to maintain total operating expenses to
1.90% of average daily net assets through May 1, 2001. For the period
ended April 30, 1999, expense reimbursements were $56,168.
As of April 30, 1999, Mr. David A. Kugler (controlling shareholder of
Monument Distributors) has a beneficial ownership of 7.6% of the Growth
Fund. As of that date, Mr. Kugler owned 2.8% of the Growth Fund. The
remainder of Mr. Kugler's beneficial ownership (4.8%) was due to his
ownership interest in Monument Distributors. As of April 30, 1999,
Monument Distributors owned 5.1% of the Growth Fund.
Note 3-INVESTMENTS- Purchases and sales of securities for the Growth Fund,
other than short-term investments aggregated $51,738 and $82,538,
respectively.
Investment Advisor:
Monument Advisors, Ltd.
7920 Norfolk Ave., Suite 500
Bethesda, MD 20814
Distributor:
Monument Distributors, Inc.
7920 Norfolk Ave., Suite 500
Bethesda, MD 20814
Independent Auditors:
Deloitte and Touche, LLP
117 Campus Dr., University Square
Princeton, NJ 08540
Transfer Agent:
For account information, wire purchases or redemptions, call or write
Monument Series Fund, Inc.'s Transfer Agent:
Fund Services, Inc.
P.O. Box 26305
Richmond, VA 23260
(800) 628-4077 Toll Free
More Information:
For 24 hour, 7 days a week price information, and for information on any
series of Monument Series Fund, Inc., investment plans, and other shareholder
services, call (888) 520-8637 Toll Free
