<PAGE>
ANNUAL
REPORT
AUGUST 31, 2000
[LOGO]
THE POTOMAC FUNDS
Enhanced Investment Strategies
100 South Royal Street
Alexandria, Virginia 22314
1311 Mamaroneck Avenue
White Plains, NY 10605
(800) 851-0511
<PAGE>
ANNUAL REPORT
AUGUST 31, 2000
POTOMAC FUNDS
DEAR SHAREHOLDERS,
The Potomac Funds' fiscal year, from September 1, 1999 through August 31, 2000,
is a story in several parts. In the aggregate, the twelve months were positive
for the equity markets. However, the positive performance of the markets was
obscured by the extreme volatility experienced during the year, the retreat from
the highs of mid-year and the uncertainty at the end of August and beyond.
September and the first half of October were relatively quiet, with the S&P 500
and the Dow declining somewhat, while the Nasdaq 100, the Russell 2000 and the
Dow Jones Composite Internet Index held their own. From the middle of October
through the end of the year, all of the broad market indices advanced, as
technology issues experienced remarkable gains. The Nasdaq 100 gained almost 50%
in the last two months of 1999, while the other indices showed smaller, though
significant, gains. Despite predictions to the contrary, investors were not
spooked by the potential for Y2K problems and the lack of concern was validated
by the lack of meaningful disruptions caused by the changing calendar.
Having begun speaking out in early 1999, Federal Reserve Chairman Alan Greenspan
continued throughout the fiscal year to express concern about equity prices and
the potential for inflation in the broader economy. In an effort to prevent the
economy from over-heating and to remove some of the frothiness from the equities
markets, the Federal Reserve began to raise interest rates. During the fiscal
year the Federal Reserve raised the discount rate four times, from a low of
4.75% to a high of 6.00%. The initial moves, in November and February, had a
significant impact on the "Old Economy" issues in the Dow and the S&P, and those
indices declined from the beginning of the year through March. However, at least
initially, investors' enthusiasm for "New Economy" issues was unaffected by the
comments and actions of Mr. Greenspan and his colleagues. In March, the mood of
the markets changed dramatically.
In light of the interest rate increases, the prospect of additional increases
and potential inflation caused by, among other things, rising oil prices and
historically low levels of unemployment, the markets began to reevaluate
equities. Unfortunately, Microsoft, which had driven the Nasdaq and the S&P and
had recently been added to the Dow, continued to struggle with government
regulators and somewhat disappointing revenue results; its share price plunged
dramatically. Ironically, AOL's announcement of its purchase of Time Warner,
which served notice of the remarkable rise of the Internet, signaled the end of
the blind frenzy for Internet issues. The combination of AOL with a traditional
media company forced investors to realize that Internet issues would one day be
valued by the same parameters as traditional companies; investors' willingness
to tolerate continued losses evaporated as skepticism replaced optimism and
equities, in particular the "New Economy" issues, were punished.
The "Old Economy" stocks benefited somewhat from investors' sudden appetite for
companies with earnings, resulting in a gain of more than 15% for the Dow from
early March through early April. However, the Dow gave back much of its gains in
mid-April.
<PAGE>
From April through the end of the year, the markets continued to experience
significant volatility though on slightly lower volumes. In general, though it
was difficult to discern direction, the markets gained from May through the end
of the fiscal year. The Nasdaq 100 and Dow Jones Composite Internet Index each
gained over 30% from their lows in May while the S&P and the Dow each gained
more than 10% from their lows in April and March, respectively. The Russell 2000
advanced 20% from its April lows.
During the fiscal year ended August 31, 2000, the Potomac Funds generally
performed, on a daily basis, as should be expected. The performance of the funds
over the fiscal year is the aggregate product of the daily returns multiplied by
the constantly changing NAV for each fund. This return is not simply the product
of the return of the index over the period and the degree of enhancement. As
always, we thank you for using the Potomac Funds and look forward to our
continued mutual success.
Sincerely,
<TABLE>
<S> <C> <C>
/s/ Daniel O'Neill /s/ Mark D. Edwards /s/ Timothy P. Hagan
Daniel O'Neill Mark D. Edwards Timothy P. Hagan
President Vice President, Investments Vice President, Chief Financial Officer
</TABLE>
2
<PAGE>
For the most recent fiscal year, the extraordinary volatility in the markets led
to increased shareholder activity which increased the transaction costs for each
of the Funds. The U.S. Plus Fund and OTC Plus Fund, the two oldest funds in the
Potomac family, were least affected due to the size of their portfolios and the
liquidity of the markets to which such Funds are targeted. The Small Cap Plus
Fund, which holds a large basket of equities from a less liquid spectrum of the
market, suffered from the volatility as shareholder activity increased and the
Russell 2000 became increasingly difficult to track with an optimized basket of
equities. The Dow 30 Plus Fund, which was launched in December of 1999 to
provide 125% of the daily return of the highly liquid Dow Jones Industrial
Average, had a relatively small asset base initially but has steadily added to
its asset base and increasingly produced the desired results. The Internet Plus
Fund, which was also launched in December of 1999 with a low level of assets,
experienced remarkable volatility in its target index which was compounded by a
high level of shareholder activity.
--------------------------------------------------------------------------------
U.S. PLUS FUND
--------------------------------------------------------------------------------
INVESTOR CLASS
OCTOBER 20, 1997 - AUGUST 31, 2000
[GRAPH]
<TABLE>
<CAPTION>
U.S. PLUS FUND S&P 500 INDEX(1)
<S> <C> <C>
10/20/97 $10,000.00 $10,000.00
10/21/97 $10,190.00 $10,174.44
10/22/97 $10,200.00 $10,134.78
10/23/97 $9,980.00 $9,948.51
10/24/97 $9,790.00 $9,853.81
10/27/97 $9,580.00 $9,177.28
10/28/97 $9,590.00 $9,646.72
10/29/97 $9,760.00 $9,618.57
10/30/97 $9,490.00 $9,456.58
10/31/97 $9,620.00 $9,571.06
11/03/97 $10,050.00 $9,826.08
11/04/97 $9,990.00 $9,844.60
11/05/97 $10,030.00 $9,865.53
11/06/97 $9,730.00 $9,816.03
11/07/97 $9,620.00 $9,705.95
11/10/97 $9,550.00 $9,639.18
11/11/97 $9,560.00 $9,666.91
11/12/97 $9,260.00 $9,480.44
11/13/97 $9,430.00 $9,592.41
11/14/97 $9,620.00 $9,714.74
11/17/97 $9,910.00 $9,901.53
11/18/97 $9,790.00 $9,818.13
11/19/97 $9,870.00 $9,884.68
11/20/97 $10,110.00 $10,035.27
11/21/97 $10,220.00 $10,078.27
11/24/97 $9,910.00 $9,906.45
11/25/97 $9,940.00 $9,949.87
11/26/97 $9,990.00 $9,958.46
11/28/97 $9,990.00 $9,997.80
12/01/97 $10,380.00 $10,200.50
12/02/97 $10,310.00 $10,168.16
12/03/97 $10,350.00 $10,221.43
12/04/97 $10,340.00 $10,183.02
12/05/97 $10,490.00 $10,294.89
12/08/97 $10,460.00 $10,280.03
12/09/97 $10,370.00 $10,211.07
12/10/97 $10,230.00 $10,148.39
12/11/97 $9,990.00 $9,992.99
12/12/97 $10,020.00 $9,976.77
12/15/97 $10,140.00 $10,081.41
12/16/97 $10,240.00 $10,130.07
12/17/97 $10,150.00 $10,103.91
12/18/97 $9,990.00 $9,996.76
12/19/97 $9,877.50 $9,907.60
12/22/97 $9,967.66 $9,980.01
12/23/97 $9,687.16 $9,827.54
12/24/97 $9,647.09 $9,760.26
12/26/97 $9,707.20 $9,799.60
12/29/97 $10,007.73 $9,976.45
12/30/97 $10,218.11 $10,159.37
12/31/97 $10,218.11 $10,155.08
1/02/98 $10,308.26 $10,203.33
1/05/98 $10,348.34 $10,224.57
1/06/98 $10,097.89 $10,114.80
1/07/98 $10,147.98 $10,087.80
1/08/98 $9,947.63 $10,004.60
1/09/98 $9,456.76 $9,707.83
1/12/98 $9,707.20 $9,828.38
1/13/98 $9,917.57 $9,963.48
1/14/98 $9,977.68 $10,024.38
1/15/98 $9,847.45 $9,948.93
1/16/98 $10,057.82 $10,061.74
1/20/98 $10,318.28 $10,240.58
1/21/98 $10,168.02 $10,159.06
1/22/98 $10,027.77 $10,077.75
1/23/98 $10,007.73 $10,020.72
1/26/98 $9,997.71 $10,014.02
1/27/98 $10,158.00 $10,140.33
1/28/98 $10,298.25 $10,228.65
1/29/98 $10,368.37 $10,312.68
1/30/98 $10,388.41 $10,258.16
2/02/98 $10,648.87 $10,477.81
2/03/98 $10,749.05 $10,527.31
2/04/98 $10,739.03 $10,536.73
2/05/98 $10,739.03 $10,501.56
2/06/98 $10,879.28 $10,594.91
2/09/98 $10,829.19 $10,576.91
2/10/98 $10,969.44 $10,663.45
2/11/98 $10,969.44 $10,673.92
2/12/98 $11,019.53 $10,717.13
2/13/98 $10,949.40 $10,674.75
2/17/98 $11,029.54 $10,702.69
2/18/98 $11,159.77 $10,800.22
2/19/98 $11,089.65 $10,760.46
2/20/98 $11,189.83 $10,822.51
2/23/98 $11,259.95 $10,863.64
2/24/98 $11,139.74 $10,784.32
2/25/98 $11,330.08 $10,913.45
2/26/98 $11,430.25 $10,973.83
2/27/98 $11,410.22 $10,980.84
3/02/98 $11,400.20 $10,963.68
3/03/98 $11,490.36 $11,008.88
3/04/98 $11,370.15 $10,959.81
3/05/98 $11,219.88 $10,831.30
3/06/98 $11,520.41 $11,047.29
3/09/98 $11,470.32 $11,011.92
3/10/98 $11,650.64 $11,136.87
3/11/98 $11,710.75 $11,181.03
3/12/98 $11,780.87 $11,196.20
3/13/98 $11,730.79 $11,182.49
3/16/98 $11,911.10 $11,294.04
3/17/98 $11,951.18 $11,306.39
3/18/98 $12,001.26 $11,359.45
3/19/98 $12,071.39 $11,403.61
3/20/98 $12,231.67 $11,502.18
3/23/98 $12,181.58 $11,464.40
3/24/98 $12,331.85 $11,570.10
3/25/98 $12,271.74 $11,531.17
3/26/98 $12,231.67 $11,519.34
3/27/98 $12,171.57 $11,463.25
3/30/98 $12,151.53 $11,443.48
3/31/98 $12,231.67 $11,529.28
4/01/98 $12,351.89 $11,596.26
4/02/98 $12,572.28 $11,720.37
4/03/98 $12,632.38 $11,748.52
4/06/98 $12,512.17 $11,734.70
4/07/98 $12,371.92 $11,610.91
4/08/98 $12,261.73 $11,528.24
4/09/98 $12,391.96 $11,622.63
4/13/98 $12,351.89 $11,612.37
4/14/98 $12,482.12 $11,675.79
4/15/98 $12,532.21 $11,713.15
4/16/98 $12,321.83 $11,596.47
4/17/98 $12,582.29 $11,748.73
4/20/98 $12,552.24 $11,758.46
4/21/98 $12,662.44 $11,790.06
4/22/98 $12,682.47 $11,830.56
4/23/98 $12,512.17 $11,715.87
4/24/98 $12,291.78 $11,593.64
4/27/98 $11,971.21 $11,370.12
4/28/98 $11,921.12 $11,355.16
4/29/98 $12,021.30 $11,454.78
4/30/98 $12,381.94 $11,633.93
5/01/98 $12,552.24 $11,730.73
5/04/98 $12,522.19 $11,741.92
5/05/98 $12,391.96 $11,673.17
5/06/98 $12,181.58 $11,562.46
5/07/98 $12,051.35 $11,460.11
5/08/98 $12,331.85 $11,596.15
5/11/98 $12,281.76 $11,580.46
5/12/98 $12,442.05 $11,676.21
5/13/98 $12,472.10 $11,708.33
5/14/98 $12,401.97 $11,692.74
5/15/98 $12,291.78 $11,602.33
5/18/98 $12,221.66 $11,571.88
5/19/98 $12,341.87 $11,610.59
5/20/98 $12,482.12 $11,710.43
5/21/98 $12,391.96 $11,664.17
5/22/98 $12,321.83 $11,620.54
5/26/98 $11,991.25 $11,448.39
5/27/98 $12,041.34 $11,429.66
5/28/98 $12,111.46 $11,485.86
5/29/98 $11,951.18 $11,414.91
6/01/98 $12,021.30 $11,416.58
6/02/98 $12,021.30 $11,440.02
6/03/98 $11,740.80 $11,330.25
6/04/98 $12,061.37 $11,456.87
6/05/98 $12,381.94 $11,656.01
6/08/98 $12,371.92 $11,675.47
6/09/98 $12,422.01 $11,703.62
6/10/98 $12,311.81 $11,639.48
6/11/98 $11,961.19 $11,454.25
6/12/98 $12,101.44 $11,498.83
6/15/98 $11,670.68 $11,270.39
6/16/98 $11,901.09 $11,381.11
6/17/98 $12,261.73 $11,585.37
6/18/98 $12,201.62 $11,577.63
6/19/98 $12,111.46 $11,517.77
6/22/98 $12,181.58 $11,544.88
6/23/98 $12,391.96 $11,714.93
6/24/98 $12,652.42 $11,855.05
6/25/98 $12,622.37 $11,817.37
6/26/98 $12,692.49 $11,858.39
6/29/98 $12,762.61 $11,913.75
6/30/98 $12,622.37 $11,865.09
7/01/98 $12,842.76 $12,019.13
7/02/98 $12,882.83 $11,996.74
7/06/98 $13,083.18 $12,110.69
7/07/98 $13,043.11 $12,082.96
7/08/98 $13,173.34 $12,205.50
7/09/98 $13,053.13 $12,123.77
7/10/98 $13,133.27 $12,184.15
7/13/98 $13,153.31 $12,193.15
7/14/98 $13,363.68 $12,322.81
7/15/98 $13,323.61 $12,293.82
7/16/98 $13,453.84 $12,389.89
7/17/98 $13,493.91 $12,418.77
7/20/98 $13,493.91 $12,391.04
7/21/98 $13,143.29 $12,191.90
7/22/98 $13,133.27 $12,181.54
7/23/98 $12,732.56 $11,926.94
7/24/98 $12,722.54 $11,937.92
7/27/98 $12,822.72 $12,005.63
7/28/98 $12,532.21 $11,827.42
7/29/98 $12,432.03 $11,774.78
7/30/98 $12,712.52 $11,960.42
7/31/98 $12,331.85 $11,727.27
8/03/98 $12,241.69 $11,641.15
8/04/98 $11,520.41 $11,219.22
8/05/98 $11,760.84 $11,316.65
8/06/98 $11,830.96 $11,402.45
8/07/98 $11,871.03 $11,400.57
8/10/98 $11,690.71 $11,334.54
8/11/98 $11,410.22 $11,186.36
8/12/98 $11,700.73 $11,345.84
8/13/98 $11,480.34 $11,248.42
8/14/98 $11,219.88 $11,121.17
8/17/98 $11,580.52 $11,340.09
8/18/98 $11,911.10 $11,523.53
8/19/98 $11,851.00 $11,490.67
8/20/98 $11,730.79 $11,423.07
8/21/98 $11,610.57 $11,314.03
8/24/98 $11,700.73 $11,386.86
8/25/98 $11,730.79 $11,436.26
8/26/98 $11,610.57 $11,345.53
8/27/98 $10,789.12 $10,910.20
8/28/98 $10,678.92 $10,748.53
8/31/98 $9,777.32 $10,017.48
9/01/98 $10,208.09 $10,404.24
9/02/98 $10,087.87 $10,364.79
9/03/98 $10,017.75 $10,278.88
9/04/98 $9,867.48 $10,191.29
9/08/98 $10,638.85 $10,710.02
9/09/98 $10,268.19 $10,529.40
9/10/98 $9,747.27 $10,257.22
9/11/98 $10,408.44 $10,559.33
9/14/98 $10,658.89 $10,775.53
9/15/98 $10,759.06 $10,858.82
9/16/98 $10,939.38 $10,940.45
9/17/98 $10,488.58 $10,661.99
9/18/98 $10,508.62 $10,674.75
9/21/98 $10,508.62 $10,714.52
9/22/98 $10,638.85 $10,774.58
9/23/98 $11,229.90 $11,156.12
9/24/98 $10,859.24 $10,911.56
9/25/98 $10,809.15 $10,932.81
9/28/98 $10,999.49 $10,974.04
9/29/98 $10,909.33 $10,977.49
9/30/98 $10,428.48 $10,642.52
10/01/98 $9,957.64 $10,322.10
10/02/98 $10,228.12 $10,491.73
10/05/98 $9,947.63 $10,344.81
10/06/98 $9,937.61 $10,303.26
10/07/98 $9,707.20 $10,157.70
10/08/98 $9,566.95 $10,040.08
10/09/98 $9,897.54 $10,301.17
10/12/98 $10,097.89 $10,440.56
10/13/98 $10,067.84 $10,410.10
10/14/98 $10,188.05 $10,522.39
10/15/98 $10,989.47 $10,961.48
10/16/98 $11,029.54 $11,054.93
10/19/98 $11,079.63 $11,117.40
10/20/98 $11,149.76 $11,133.52
10/21/98 $11,129.72 $11,196.20
10/22/98 $11,350.11 $11,285.78
10/23/98 $11,149.76 $11,204.05
10/26/98 $11,259.95 $11,221.31
10/27/98 $11,159.77 $11,148.27
10/28/98 $11,119.70 $11,177.05
10/29/98 $11,490.36 $11,363.74
10/30/98 $11,640.63 $11,497.05
11/02/98 $11,881.05 $11,632.36
11/03/98 $11,800.91 $11,624.41
11/04/98 $11,951.18 $11,706.35
11/05/98 $12,221.66 $11,865.20
11/06/98 $12,321.83 $11,940.12
11/09/98 $12,151.53 $11,827.00
11/10/98 $12,021.30 $11,806.70
11/11/98 $11,981.23 $11,730.41
11/12/98 $11,931.14 $11,696.09
11/13/98 $12,091.42 $11,780.12
11/16/98 $12,241.69 $11,886.23
11/17/98 $12,271.74 $11,922.44
11/18/98 $12,361.90 $11,976.43
11/19/98 $12,512.17 $12,061.51
11/20/98 $12,662.44 $12,175.99
11/23/98 $13,093.20 $12,434.05
11/24/98 $12,962.97 $12,379.42
11/25/98 $12,952.95 $12,420.02
11/27/98 $13,093.20 $12,476.74
11/30/98 $12,582.29 $12,176.83
12/01/98 $12,762.61 $12,298.74
12/02/98 $12,732.56 $12,256.57
12/03/98 $12,411.99 $12,035.66
12/04/98 $12,852.77 $12,314.02
12/07/98 $13,013.06 $12,428.71
12/08/98 $12,912.88 $12,362.57
12/09/98 $12,952.95 $12,384.65
12/10/98 $12,652.42 $12,191.38
12/11/98 $12,602.33 $12,206.44
12/14/98 $12,279.19 $11,942.11
12/15/98 $12,602.33 $12,168.46
12/16/98 $12,602.33 $12,159.14
12/17/98 $12,895.17 $12,347.92
12/18/98 $12,975.96 $12,432.16
12/21/98 $13,258.70 $12,587.14
12/22/98 $13,278.90 $12,594.78
12/23/98 $13,713.11 $12,856.08
12/24/98 $13,672.72 $12,832.33
12/28/98 $13,571.74 $12,824.16
12/29/98 $13,915.07 $12,994.95
12/30/98 $13,723.21 $12,891.56
12/31/98 $13,753.50 $12,863.30
1/04/99 $13,682.82 $12,851.48
1/05/99 $13,915.07 $13,026.03
1/06/99 $14,349.29 $13,314.43
1/07/99 $14,308.89 $13,287.11
1/08/99 $14,460.36 $13,343.20
1/11/99 $14,238.21 $13,225.90
1/12/99 $13,844.39 $12,970.88
1/13/99 $13,662.62 $12,917.40
1/14/99 $13,339.48 $12,684.99
1/15/99 $13,803.99 $13,010.12
1/19/99 $13,965.56 $13,101.58
1/20/99 $14,157.42 $13,149.93
1/21/99 $13,591.93 $12,925.36
1/22/99 $13,551.54 $12,821.02
1/25/99 $13,723.21 $12,913.01
1/26/99 $14,096.84 $13,104.82
1/27/99 $13,814.09 $13,009.18
1/28/99 $14,167.52 $13,241.49
1/29/99 $14,389.68 $13,390.82
2/01/99 $14,288.70 $13,321.33
2/02/99 $14,117.03 $13,206.12
2/03/99 $14,339.19 $13,311.60
2/04/99 $13,975.66 $13,064.85
2/05/99 $13,753.50 $12,969.73
2/08/99 $13,814.09 $13,015.46
2/09/99 $13,349.58 $12,726.32
2/10/99 $13,460.66 $12,803.86
2/11/99 $14,076.64 $13,122.93
2/12/99 $13,682.82 $12,872.72
2/16/99 $13,753.50 $12,995.57
2/17/99 $13,531.35 $12,808.89
2/18/99 $13,682.82 $12,947.54
2/19/99 $13,763.60 $12,967.53
2/22/99 $14,288.70 $13,312.33
2/23/99 $14,298.80 $13,302.29
2/24/99 $13,915.07 $13,116.33
2/25/99 $13,733.31 $13,028.54
2/26/99 $13,632.33 $12,958.53
3/01/99 $13,682.82 $12,935.82
3/02/99 $13,531.35 $12,824.27
3/03/99 $13,612.13 $12,847.29
3/04/99 $13,874.68 $13,045.49
3/05/99 $14,359.38 $13,347.18
3/08/99 $14,430.07 $13,423.15
3/09/99 $14,379.58 $13,392.91
3/10/99 $14,531.05 $13,466.16
3/11/99 $14,793.60 $13,579.60
3/12/99 $14,581.54 $13,547.26
3/15/99 $14,833.99 $13,679.85
3/16/99 $14,823.89 $13,670.43
3/17/99 $14,712.82 $13,581.06
3/18/99 $15,035.95 $13,777.06
3/19/99 $14,672.42 $13,596.45
3/22/99 $14,702.72 $13,572.59
3/23/99 $14,036.25 $13,207.69
3/24/99 $14,157.42 $13,275.19
3/25/99 $14,561.34 $13,499.13
3/26/99 $14,450.27 $13,423.89
3/29/99 $14,793.60 $13,710.30
3/30/99 $14,773.40 $13,611.72
3/31/99 $14,430.07 $13,461.24
4/01/99 $14,571.44 $13,538.16
4/05/99 $15,076.34 $13,824.89
4/06/99 $15,025.85 $13,791.09
4/07/99 $15,167.23 $13,885.27
4/08/99 $15,460.07 $14,064.11
4/09/99 $15,510.56 $14,109.84
4/12/99 $15,742.81 $14,217.41
4/13/99 $15,581.24 $14,125.22
4/14/99 $15,187.42 $13,901.49
4/15/99 $15,076.34 $13,842.99
4/16/99 $14,914.78 $13,802.70
4/19/99 $14,561.34 $13,493.79
4/20/99 $14,773.40 $13,668.44
4/21/99 $15,409.58 $13,981.85
4/22/99 $15,702.42 $14,219.50
4/23/99 $15,641.83 $14,198.78
4/26/99 $15,742.81 $14,232.17
4/27/99 $15,833.70 $14,261.05
4/28/99 $15,530.75 $14,136.63
4/29/99 $15,328.79 $14,052.07
4/30/99 $15,167.23 $13,972.02
5/03/99 $15,550.95 $14,175.55
5/04/99 $15,268.21 $13,938.74
5/05/99 $15,419.68 $14,098.95
5/06/99 $15,258.11 $13,939.26
5/07/99 $15,409.58 $14,074.78
5/10/99 $15,338.89 $14,025.60
5/11/99 $15,540.85 $14,185.81
5/12/99 $15,722.62 $14,273.61
5/13/99 $15,823.60 $14,310.86
5/14/99 $15,227.81 $13,999.44
5/17/99 $15,258.11 $14,017.12
5/18/99 $15,248.01 $13,952.55
5/19/99 $15,389.38 $14,066.72
5/20/99 $15,248.01 $14,010.21
5/21/99 $15,116.74 $13,920.85
5/24/99 $14,733.01 $13,673.47
5/25/99 $14,278.60 $13,440.63
5/26/99 $14,611.83 $13,653.69
5/27/99 $14,298.80 $13,409.34
5/28/99 $14,520.95 $13,623.13
6/01/99 $14,470.46 $13,543.81
6/02/99 $14,480.56 $13,549.57
6/03/99 $14,621.93 $13,599.06
6/04/99 $15,035.95 $13,894.27
6/07/99 $15,096.54 $13,965.11
6/08/99 $14,894.58 $13,785.23
6/09/99 $14,864.29 $13,798.93
6/10/99 $14,662.33 $13,633.39
6/11/99 $14,470.46 $13,537.32
6/14/99 $14,490.66 $13,541.09
6/15/99 $14,652.23 $13,616.02
6/16/99 $15,046.05 $13,922.10
6/17/99 $15,258.11 $14,021.41
6/18/99 $15,248.01 $14,052.18
6/21/99 $15,328.79 $14,116.64
6/22/99 $15,157.13 $13,979.34
6/23/99 $15,046.05 $13,949.83
6/24/99 $14,874.38 $13,769.01
6/25/99 $14,813.80 $13,764.09
6/28/99 $15,076.34 $13,931.94
6/29/99 $15,288.40 $14,142.28
6/30/99 $15,702.42 $14,364.75
7/01/99 $15,884.19 $14,451.08
7/02/99 $16,116.44 $14,558.45
7/06/99 $16,086.15 $14,526.01
7/07/99 $16,116.44 $14,607.00
7/08/99 $16,126.54 $14,591.94
7/09/99 $16,278.01 $14,684.65
7/12/99 $16,187.13 $14,640.91
7/13/99 $16,096.24 $14,582.94
7/14/99 $16,207.32 $14,631.18
7/15/99 $16,378.99 $14,751.00
7/16/99 $16,510.26 $14,846.85
7/19/99 $16,348.69 $14,730.38
7/20/99 $15,823.60 $14,410.69
7/21/99 $15,793.30 $14,433.61
7/22/99 $15,490.36 $14,241.90
7/23/99 $15,409.58 $14,199.73
7/26/99 $15,268.21 $14,103.66
7/27/99 $15,439.87 $14,261.47
7/28/99 $15,510.56 $14,288.26
7/29/99 $15,187.42 $14,033.24
7/30/99 $14,894.58 $13,904.42
8/02/99 $14,955.17 $13,897.41
8/03/99 $14,844.09 $13,835.98
8/04/99 $14,520.95 $13,659.65
8/05/99 $14,722.91 $13,747.34
8/06/99 $14,480.56 $13,606.91
8/09/99 $14,430.07 $13,580.85
8/10/99 $14,197.82 $13,409.55
8/11/99 $14,450.27 $13,624.07
8/12/99 $14,440.17 $13,584.62
8/13/99 $14,924.87 $13,893.53
8/16/99 $15,025.85 $13,925.87
8/17/99 $15,167.23 $14,065.99
8/18/99 $14,955.17 $13,947.53
8/19/99 $14,823.89 $13,850.73
8/20/99 $15,046.05 $13,986.98
8/23/99 $15,470.17 $14,234.05
8/24/99 $15,550.95 $14,268.37
8/25/99 $15,773.11 $14,459.77
8/26/99 $15,500.46 $14,252.78
8/27/99 $15,227.81 $14,109.00
8/30/99 $14,793.60 $13,855.23
8/31/1999 $14,702.72 $13,817.46
9/1/1999 $14,965.26 $13,929.01
9/2/1999 $14,712.81 $13,803.86
9/3/1999 $15,439.87 $14,202.87
9/7/1999 $15,268.20 $14,131.81
9/8/1999 $15,157.13 $14,065.89
9/9/1999 $15,157.13 $14,102.62
9/10/1999 $15,318.69 $14,144.48
9/13/1999 $15,187.42 $14,065.68
9/14/1999 $15,025.85 $13,983.64
9/15/1999 $14,662.32 $13,791.93
9/16/1999 $14,743.11 $13,797.26
9/17/1999 $15,035.95 $13,974.53
9/20/1999 $14,985.46 $13,975.68
9/21/1999 $14,520.95 $13,683.20
9/22/1999 $14,531.05 $13,713.86
9/23/1999 $14,026.15 $13,398.88
9/24/1999 $13,995.85 $13,366.96
9/27/1999 $14,137.23 $13,429.23
9/28/1999 $14,096.83 $13,417.61
9/29/1999 $13,844.38 $13,272.89
9/30/1999 $14,157.42 $13,422.95
10/1/1999 $14,096.83 $13,423.99
10/4/1999 $14,480.56 $13,652.02
10/5/1999 $14,450.27 $13,618.01
10/6/1999 $14,763.30 $13,869.68
10/7/1999 $14,662.32 $13,788.47
10/8/1999 $14,985.46 $13,980.81
10/11/1999 $14,965.26 $13,972.33
10/12/1999 $14,621.93 $13,740.34
10/13/1999 $14,046.34 $13,452.67
10/14/1999 $14,046.34 $13,430.38
10/15/1999 $13,490.95 $13,053.55
10/18/1999 $13,652.52 $13,123.87
10/19/1999 $13,783.80 $13,199.11
10/20/1999 $14,076.64 $13,493.27
10/21/1999 $14,127.13 $13,432.37
10/22/1999 $14,318.99 $13,621.15
10/25/1999 $14,218.01 $13,537.22
10/26/1999 $13,955.46 $13,414.58
10/27/1999 $14,318.99 $13,569.45
10/28/1999 $15,046.05 $14,047.99
10/29/1999 $15,460.07 $14,262.41
11/1/1999 $15,227.81 $14,170.22
11/2/1999 $15,066.24 $14,103.46
11/3/1999 $15,207.62 $14,178.70
11/4/1999 $15,359.09 $14,259.38
11/5/1999 $15,601.44 $14,338.80
11/8/1999 $15,540.85 $14,409.75
11/9/1999 $15,348.99 $14,287.00
11/10/1999 $15,520.66 $14,372.60
11/11/1999 $15,662.03 $14,456.32
11/12/1999 $15,894.28 $14,609.10
11/15/1999 $15,914.48 $14,591.63
11/16/1999 $16,399.18 $14,859.94
11/17/1999 $16,166.93 $14,762.41
11/18/1999 $16,348.69 $14,911.32
11/19/1999 $16,328.50 $14,880.55
11/22/1999 $16,328.50 $14,869.46
11/23/1999 $16,086.14 $14,698.89
11/24/1999 $16,237.61 $14,829.07
11/26/1999 $16,126.54 $14,824.25
11/29/1999 $16,045.75 $14,732.27
11/30/1999 $15,773.11 $14,534.28
12/1/1999 $15,975.07 $14,626.47
12/2/1999 $16,116.44 $14,744.93
12/3/1999 $16,570.85 $14,998.80
12/6/1999 $16,358.79 $14,894.57
12/7/1999 $16,177.03 $14,746.29
12/8/1999 $16,015.46 $14,690.93
12/9/1999 $16,106.34 $14,735.20
12/10/1999 $16,197.22 $14,828.65
12/13/1999 $16,237.61 $14,809.60
12/14/1999 $16,045.75 $14,683.50
12/15/1999 $16,116.44 $14,789.82
12/16/1999 $16,267.91 $14,846.86
12/17/1999 $16,389.08 $14,870.61
12/20/1999 $16,227.52 $14,839.63
12/21/1999 $16,601.14 $15,000.16
12/22/1999 $16,661.73 $15,028.41
12/23/1999 $17,055.55 $15,260.83
12/27/1999 $17,015.16 $15,247.75
12/28/1999 $17,015.16 $15,253.72
12/29/1999 $17,106.04 $15,314.41
12/30/1999 $17,075.75 $15,324.98
12/31/1999 $17,116.14 $15,375.00
1/3/2000 $16,843.50 $15,228.18
1/4/2000 $15,853.89 $14,644.26
1/5/2000 $15,914.48 $14,672.41
1/6/2000 $15,783.20 $14,686.43
1/7/2000 $16,732.42 $15,084.30
1/10/2000 $16,994.97 $15,253.09
1/11/2000 $16,641.54 $15,053.84
1/12/2000 $16,399.18 $14,987.81
1/13/2000 $16,712.22 $15,170.21
1/14/2000 $17,045.46 $15,332.09
1/18/2000 $16,843.50 $15,227.35
1/19/2000 $16,904.08 $15,235.30
1/20/2000 $16,641.54 $15,127.20
1/21/2000 $16,580.95 $15,083.14
1/24/2000 $15,823.60 $14,666.34
1/25/2000 $15,954.87 $14,755.29
1/26/2000 $15,914.48 $14,693.13
1/27/2000 $15,803.40 $14,635.26
1/28/2000 $15,066.24 $14,233.42
1/31/2000 $15,641.83 $14,592.36
2/1/2000 $15,914.48 $14,747.44
2/2/2000 $15,894.28 $14,745.77
2/3/2000 $16,247.71 $14,911.63
2/4/2000 $16,156.83 $14,905.35
2/7/2000 $16,086.14 $14,903.99
2/8/2000 $16,419.38 $15,086.91
2/9/2000 $15,914.48 $14,772.77
2/10/2000 $15,944.77 $14,826.45
2/11/2000 $15,561.05 $14,515.55
2/14/2000 $15,591.34 $14,545.06
2/15/2000 $15,783.20 $14,671.78
2/16/2000 $15,510.56 $14,521.30
2/17/2000 $15,369.18 $14,527.37
2/18/2000 $14,833.99 $14,086.19
2/22/2000 $14,803.70 $14,149.81
2/23/2000 $15,066.24 $14,238.97
2/24/2000 $14,884.48 $14,163.00
2/25/2000 $14,621.93 $13,952.98
2/28/2000 $14,743.11 $14,106.70
2/29/2000 $15,157.13 $14,298.93
3/1/2000 $15,348.99 $14,432.56
3/2/2000 $15,359.09 $14,459.46
3/3/2000 $15,793.30 $14,746.29
3/6/2000 $15,540.85 $14,559.08
3/7/2000 $14,793.60 $14,185.92
3/8/2000 $15,035.95 $14,301.86
3/9/2000 $15,682.22 $14,668.02
3/10/2000 $15,591.34 $14,598.74
3/13/2000 $15,328.79 $14,478.92
3/14/2000 $14,985.46 $14,222.86
3/15/2000 $15,530.75 $14,568.08
3/16/2000 $16,621.34 $15,262.19
3/17/2000 $16,782.91 $15,324.98
3/20/2000 $16,641.54 $15,242.94
3/21/2000 $17,136.34 $15,632.64
3/22/2000 $17,287.81 $15,703.48
3/23/2000 $17,722.02 $15,982.99
3/24/2000 $17,913.89 $15,984.14
3/27/2000 $17,631.14 $15,946.47
3/28/2000 $17,479.67 $15,777.67
3/29/2000 $17,499.87 $15,785.94
3/30/2000 $17,045.46 $15,570.37
3/31/2000 $17,297.91 $15,681.92
4/3/2000 $17,459.47 $15,759.26
4/4/2000 $17,297.91 $15,641.64
4/5/2000 $17,095.95 $15,564.62
4/6/2000 $17,297.91 $15,710.81
4/7/2000 $17,499.87 $15,867.88
4/10/2000 $17,368.59 $15,743.46
4/11/2000 $17,297.91 $15,702.96
4/12/2000 $16,580.95 $15,353.23
4/13/2000 $16,237.61 $15,074.25
4/14/2000 $14,763.30 $14,195.75
4/17/2000 $15,510.56 $14,665.40
4/18/2000 $16,207.32 $15,085.76
4/19/2000 $15,985.16 $14,937.79
4/20/2000 $16,106.34 $15,011.78
4/24/2000 $15,914.48 $14,962.80
4/25/2000 $16,813.20 $15,460.70
4/26/2000 $16,560.75 $15,288.56
4/27/2000 $16,429.48 $15,329.69
4/28/2000 $16,308.30 $15,198.99
5/1/2000 $16,611.24 $15,364.53
5/2/2000 $16,126.54 $15,134.73
5/3/2000 $15,682.22 $14,808.35
5/4/2000 $15,712.52 $14,750.48
5/5/2000 $15,985.16 $14,991.79
5/8/2000 $15,813.50 $14,903.26
5/9/2000 $15,631.73 $14,777.37
5/10/2000 $15,106.64 $14,472.96
5/11/2000 $15,601.44 $14,732.06
5/12/2000 $15,853.89 $14,869.67
5/15/2000 $16,278.01 $15,198.25
5/16/2000 $16,510.26 $15,341.41
5/17/2000 $16,257.81 $15,150.54
5/18/2000 $16,025.56 $15,039.72
5/19/2000 $15,571.15 $14,723.06
5/22/2000 $15,389.38 $14,657.87
5/23/2000 $15,056.15 $14,376.79
5/24/2000 $15,409.58 $14,640.39
5/25/2000 $15,147.03 $14,456.95
5/26/2000 $15,025.85 $14,420.32
5/30/2000 $15,783.20 $14,885.26
5/31/2000 $15,722.62 $14,865.90
6/1/2000 $16,207.32 $15,161.10
6/2/2000 $16,621.34 $15,458.82
6/5/2000 $16,510.26 $15,358.05
6/6/2000 $16,399.18 $15,255.60
6/7/2000 $16,560.75 $15,397.08
6/8/2000 $16,449.67 $15,295.68
6/9/2000 $16,399.18 $15,246.29
6/12/2000 $16,116.44 $15,131.70
6/13/2000 $16,560.75 $15,376.99
6/14/2000 $16,611.24 $15,388.50
6/15/2000 $16,631.44 $15,474.20
6/16/2000 $16,449.67 $15,324.87
6/19/2000 $16,752.61 $15,550.28
6/20/2000 $16,651.63 $15,445.11
6/21/2000 $16,631.44 $15,478.39
6/22/2000 $16,257.81 $15,196.37
6/23/2000 $16,035.65 $15,084.40
6/26/2000 $16,328.50 $15,228.50
6/27/2000 $16,166.93 $15,179.31
6/28/2000 $16,217.42 $15,224.00
6/29/2000 $15,985.16 $15,093.92
6/30/2000 $16,166.93 $15,221.69
7/3/2000 $16,510.26 $15,378.03
7/5/2000 $16,055.85 $15,134.11
7/6/2000 $16,237.61 $15,243.36
7/7/2000 $16,611.24 $15,475.98
7/10/2000 $16,560.75 $15,441.66
7/11/2000 $16,611.24 $15,496.70
7/12/2000 $16,782.91 $15,622.69
7/13/2000 $16,873.79 $15,653.25
7/14/2000 $17,116.14 $15,801.22
7/17/2000 $17,075.75 $15,806.56
7/18/2000 $16,883.89 $15,631.28
7/19/2000 $16,692.03 $15,508.00
7/20/2000 $16,994.97 $15,649.38
7/21/2000 $16,520.36 $15,489.48
7/24/2000 $16,368.89 $15,323.10
7/25/2000 $16,439.57 $15,429.62
7/26/2000 $16,197.22 $15,198.88
7/27/2000 $16,106.34 $15,169.58
7/28/2000 $15,571.15 $14,858.47
7/31/2000 $15,692.32 $14,972.95
8/1/2000 $15,843.79 $15,049.03
8/2/2000 $15,954.87 $15,055.31
8/3/2000 $16,106.34 $15,200.35
8/4/2000 $16,247.71 $15,308.86
8/7/2000 $16,520.36 $15,480.38
8/8/2000 $16,611.24 $15,516.90
8/9/2000 $16,419.38 $15,412.88
8/10/2000 $16,298.20 $15,280.82
8/11/2000 $16,389.08 $15,402.10
8/14/2000 $16,712.22 $15,608.46
8/15/2000 $16,671.83 $15,533.85
8/16/2000 $16,601.14 $15,485.92
8/17/2000 $16,833.40 $15,655.66
8/18/2000 $16,762.71 $15,610.14
8/21/2000 $16,893.99 $15,691.34
8/22/2000 $16,873.79 $15,677.21
8/23/2000 $16,944.48 $15,759.26
8/24/2000 $17,025.26 $15,783.74
8/25/2000 $17,005.06 $15,764.38
8/28/2000 $17,095.95 $15,844.23
8/29/2000 $17,095.95 $15,799.75
8/30/2000 $16,843.50 $15,723.89
8/31/2000 $17,166.63 $15,881.80
</TABLE>
<TABLE>
<CAPTION>
SINCE
1 YEAR INCEPTION(2)
------ ------------
<S> <C> <C>
U.S. PLUS FUND 16.76% 20.73%
S&P 500 INDEX(1) 14.94% 17.50%
</TABLE>
The U.S. Plus Fund seeks to provide daily investment returns equal to 150% of
the performance of the daily return of the Standard & Poor's 500 Index. The
principal securities in the Fund's portfolio include long positions in Standard
& Poor's Depositary Receipts ("SPDRs"), S&P 500 futures contracts, and options
on the S&P 500. The S&P 500 (and the Fund) gained from the beginning of the
fiscal year through December, declined in January and February, recovered in
March and declined significantly in April. For the year, the Fund gained 16.76%
while the index gained 14.94%.
(1) RETURN DOES NOT INCLUDE CONTINUOUS REINVESTMENT OF DIVIDENDS.
(2) AVERAGE ANNUAL RATE OF RETURN.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
3
<PAGE>
--------------------------------------------------------------------------------
U.S./SHORT FUND
--------------------------------------------------------------------------------
INVESTOR CLASS
NOVEMBER 7, 1997 - AUGUST 31, 2000
[GRAPH]
<TABLE>
<CAPTION>
U.S./SHORT FUND S&P 500 INDEX(1)
<S> <C> <C>
11/07/97 $10,000.00 $10,000.00
11/10/97 $10,140.00 $9,931.21
11/11/97 $10,030.00 $9,959.78
11/12/97 $10,080.00 $9,767.66
11/13/97 $9,800.00 $9,883.02
11/14/97 $9,580.00 $10,009.06
11/17/97 $9,460.00 $10,201.51
11/18/97 $9,410.00 $10,115.58
11/19/97 $9,370.00 $10,184.15
11/20/97 $9,300.00 $10,339.30
11/21/97 $9,300.00 $10,383.61
11/24/97 $9,330.00 $10,206.57
11/25/97 $9,310.00 $10,251.32
11/26/97 $9,290.00 $10,260.16
11/28/97 $9,270.00 $10,300.70
12/01/97 $9,230.00 $10,509.54
12/02/97 $9,220.00 $10,476.22
12/03/97 $9,220.00 $10,531.10
12/04/97 $9,230.00 $10,491.53
12/05/97 $9,140.00 $10,606.79
12/08/97 $9,160.00 $10,591.48
12/09/97 $9,210.00 $10,520.43
12/10/97 $9,300.00 $10,455.84
12/11/97 $9,430.00 $10,295.74
12/12/97 $9,420.00 $10,279.03
12/15/97 $9,350.00 $10,386.84
12/16/97 $9,290.00 $10,436.98
12/17/97 $9,340.00 $10,410.02
12/18/97 $9,440.00 $10,299.62
12/19/97 $9,510.00 $10,207.76
12/22/97 $9,460.00 $10,282.37
12/23/97 $9,630.00 $10,125.28
12/24/97 $9,660.00 $10,055.96
12/26/97 $9,620.00 $10,096.49
12/29/97 $9,440.00 $10,278.70
12/30/97 $9,310.00 $10,467.16
12/31/97 $9,420.00 $10,462.74
1/02/98 $9,370.00 $10,512.45
1/05/98 $9,350.00 $10,534.33
1/06/98 $9,500.00 $10,421.24
1/07/98 $9,470.00 $10,393.42
1/08/98 $9,600.00 $10,307.71
1/09/98 $9,910.00 $10,001.94
1/12/98 $9,740.00 $10,126.14
1/13/98 $9,600.00 $10,265.33
1/14/98 $9,560.00 $10,328.08
1/15/98 $9,460.00 $10,250.35
1/16/98 $9,340.00 $10,366.57
1/20/98 $9,180.00 $10,550.83
1/21/98 $9,280.00 $10,466.84
1/22/98 $9,370.00 $10,383.07
1/23/98 $9,390.00 $10,324.31
1/26/98 $9,400.00 $10,317.41
1/27/98 $9,310.00 $10,447.54
1/28/98 $9,220.00 $10,538.54
1/29/98 $9,160.00 $10,625.11
1/30/98 $9,150.00 $10,568.94
2/02/98 $9,000.00 $10,795.25
2/03/98 $8,940.00 $10,846.24
2/04/98 $8,950.00 $10,855.95
2/05/98 $8,950.00 $10,819.72
2/06/98 $8,870.00 $10,915.89
2/09/98 $8,910.00 $10,897.35
2/10/98 $8,830.00 $10,986.51
2/11/98 $8,830.00 $10,997.29
2/12/98 $8,810.00 $11,041.82
2/13/98 $8,830.00 $10,998.16
2/17/98 $8,790.00 $11,026.94
2/18/98 $8,720.00 $11,127.43
2/19/98 $8,760.00 $11,086.46
2/20/98 $8,690.00 $11,150.39
2/23/98 $8,660.00 $11,192.76
2/24/98 $8,720.00 $11,111.04
2/25/98 $8,620.00 $11,244.08
2/26/98 $8,570.00 $11,306.29
2/27/98 $8,580.00 $11,313.52
3/02/98 $8,580.00 $11,295.84
3/03/98 $8,540.00 $11,342.41
3/04/98 $8,600.00 $11,291.85
3/05/98 $8,680.00 $11,159.45
3/06/98 $8,530.00 $11,381.98
3/09/98 $8,540.00 $11,345.54
3/10/98 $8,450.00 $11,474.27
3/11/98 $8,420.00 $11,519.77
3/12/98 $8,390.00 $11,535.40
3/13/98 $8,420.00 $11,521.28
3/16/98 $8,340.00 $11,636.21
3/17/98 $8,320.00 $11,648.93
3/18/98 $8,290.00 $11,703.59
3/19/98 $8,270.00 $11,749.09
3/20/98 $8,200.00 $11,850.65
3/23/98 $8,230.00 $11,811.73
3/24/98 $8,140.00 $11,920.63
3/25/98 $8,170.00 $11,880.52
3/26/98 $8,190.00 $11,868.34
3/27/98 $8,220.00 $11,810.55
3/30/98 $8,230.00 $11,790.17
3/31/98 $8,190.00 $11,878.58
4/01/98 $8,140.00 $11,947.58
4/02/98 $8,050.00 $12,075.45
4/03/98 $8,010.00 $12,104.45
4/06/98 $8,070.00 $12,090.22
4/07/98 $8,130.00 $11,962.67
4/08/98 $8,180.00 $11,877.50
4/09/98 $8,130.00 $11,974.75
4/13/98 $8,140.00 $11,964.18
4/14/98 $8,060.00 $12,029.52
4/15/98 $8,040.00 $12,068.01
4/16/98 $8,050.00 $11,947.80
4/17/98 $7,920.00 $12,104.67
4/20/98 $7,930.00 $12,114.69
4/21/98 $7,890.00 $12,147.25
4/22/98 $7,870.00 $12,188.98
4/23/98 $7,950.00 $12,070.81
4/24/98 $8,040.00 $11,944.88
4/27/98 $8,180.00 $11,714.59
4/28/98 $8,200.00 $11,699.17
4/29/98 $8,150.00 $11,801.81
4/30/98 $7,990.00 $11,986.39
5/01/98 $7,920.00 $12,086.12
5/04/98 $7,930.00 $12,097.66
5/05/98 $7,990.00 $12,026.82
5/06/98 $8,090.00 $11,912.76
5/07/98 $8,150.00 $11,807.31
5/08/98 $8,020.00 $11,947.47
5/11/98 $8,050.00 $11,931.30
5/12/98 $7,980.00 $12,029.95
5/13/98 $7,970.00 $12,063.05
5/14/98 $8,000.00 $12,046.99
5/15/98 $8,050.00 $11,953.83
5/18/98 $8,080.00 $11,922.46
5/19/98 $8,030.00 $11,962.35
5/20/98 $7,960.00 $12,065.21
5/21/98 $8,010.00 $12,017.55
5/22/98 $8,040.00 $11,972.59
5/26/98 $8,180.00 $11,795.24
5/27/98 $8,170.00 $11,775.94
5/28/98 $8,140.00 $11,833.83
5/29/98 $8,200.00 $11,760.74
6/01/98 $8,180.00 $11,762.46
6/02/98 $8,180.00 $11,786.61
6/03/98 $8,310.00 $11,673.51
6/04/98 $8,160.00 $11,803.97
6/05/98 $8,010.00 $12,009.14
6/08/98 $8,010.00 $12,029.20
6/09/98 $7,990.00 $12,058.20
6/10/98 $8,030.00 $11,992.11
6/11/98 $8,200.00 $11,801.27
6/12/98 $8,140.00 $11,847.20
6/15/98 $8,340.00 $11,611.84
6/16/98 $8,230.00 $11,725.91
6/17/98 $8,070.00 $11,936.37
6/18/98 $8,090.00 $11,928.39
6/19/98 $8,140.00 $11,866.72
6/22/98 $8,110.00 $11,894.64
6/23/98 $8,000.00 $12,069.84
6/24/98 $7,890.00 $12,214.21
6/25/98 $7,910.00 $12,175.39
6/26/98 $7,880.00 $12,217.66
6/29/98 $7,860.00 $12,274.69
6/30/98 $7,910.00 $12,224.56
7/01/98 $7,820.00 $12,383.26
7/02/98 $7,820.00 $12,360.19
7/06/98 $7,740.00 $12,477.60
7/07/98 $7,750.00 $12,449.03
7/08/98 $7,700.00 $12,575.28
7/09/98 $7,750.00 $12,491.08
7/10/98 $7,710.00 $12,553.29
7/13/98 $7,720.00 $12,562.56
7/14/98 $7,650.00 $12,696.14
7/15/98 $7,630.00 $12,666.28
7/16/98 $7,580.00 $12,765.25
7/17/98 $7,550.00 $12,795.01
7/20/98 $7,560.00 $12,766.44
7/21/98 $7,710.00 $12,561.27
7/22/98 $7,710.00 $12,550.59
7/23/98 $7,950.00 $12,288.28
7/24/98 $7,950.00 $12,299.60
7/27/98 $7,910.00 $12,369.35
7/28/98 $8,040.00 $12,185.74
7/29/98 $8,060.00 $12,131.51
7/30/98 $7,940.00 $12,322.78
7/31/98 $8,110.00 $12,082.57
8/03/98 $8,140.00 $11,993.83
8/04/98 $8,440.00 $11,559.12
8/05/98 $8,370.00 $11,659.50
8/06/98 $8,320.00 $11,747.91
8/07/98 $8,310.00 $11,745.97
8/10/98 $8,360.00 $11,677.93
8/11/98 $8,510.00 $11,525.27
8/12/98 $8,390.00 $11,689.58
8/13/98 $8,440.00 $11,589.20
8/14/98 $8,550.00 $11,458.10
8/17/98 $8,380.00 $11,683.65
8/18/98 $8,220.00 $11,872.65
8/19/98 $8,240.00 $11,838.79
8/20/98 $8,290.00 $11,769.15
8/21/98 $8,350.00 $11,656.80
8/24/98 $8,310.00 $11,731.84
8/25/98 $8,280.00 $11,782.73
8/26/98 $8,350.00 $11,689.25
8/27/98 $8,730.00 $11,240.74
8/28/98 $8,790.00 $11,074.17
8/31/98 $9,460.00 $10,320.97
9/01/98 $9,000.00 $10,719.45
9/02/98 $9,080.00 $10,678.81
9/03/98 $9,120.00 $10,590.29
9/04/98 $9,210.00 $10,500.05
9/08/98 $8,730.00 $11,034.49
9/09/98 $8,940.00 $10,848.40
9/10/98 $9,200.00 $10,567.97
9/11/98 $8,830.00 $10,879.24
9/14/98 $8,670.00 $11,101.98
9/15/98 $8,620.00 $11,187.80
9/16/98 $8,530.00 $11,271.90
9/17/98 $8,750.00 $10,985.00
9/18/98 $8,750.00 $10,998.16
9/21/98 $8,740.00 $11,039.13
9/22/98 $8,670.00 $11,101.01
9/23/98 $8,350.00 $11,494.11
9/24/98 $8,540.00 $11,242.14
9/25/98 $8,560.00 $11,264.03
9/28/98 $8,480.00 $11,306.51
9/29/98 $8,520.00 $11,310.07
9/30/98 $8,780.00 $10,964.95
10/01/98 $9,050.00 $10,634.82
10/02/98 $8,880.00 $10,809.59
10/05/98 $9,040.00 $10,658.21
10/06/98 $9,050.00 $10,615.41
10/07/98 $9,190.00 $10,465.44
10/08/98 $9,280.00 $10,344.26
10/09/98 $9,060.00 $10,613.26
10/12/98 $8,930.00 $10,756.87
10/13/98 $8,950.00 $10,725.49
10/14/98 $8,880.00 $10,841.18
10/15/98 $8,420.00 $11,293.57
10/16/98 $8,410.00 $11,389.85
10/19/98 $8,410.00 $11,454.22
10/20/98 $8,370.00 $11,470.82
10/21/1998 $8,370.00 $11,535.40
10/22/1998 $8,260.00 $11,627.69
10/23/1998 $8,360.00 $11,543.49
10/26/1998 $8,310.00 $11,561.28
10/27/1998 $8,350.00 $11,486.02
10/28/1998 $8,370.00 $11,515.67
10/29/1998 $8,180.00 $11,708.01
10/30/1998 $8,120.00 $11,845.37
11/2/1998 $7,990.00 $11,984.78
11/3/1998 $8,040.00 $11,976.58
11/4/1998 $7,990.00 $12,061.00
11/5/1998 $7,860.00 $12,224.67
11/6/1998 $7,820.00 $12,301.86
11/9/1998 $7,900.00 $12,185.31
11/10/1998 $7,950.00 $12,164.40
11/11/1998 $7,970.00 $12,085.80
11/12/1998 $7,990.00 $12,050.44
11/13/1998 $7,920.00 $12,137.01
11/16/1998 $7,860.00 $12,246.34
11/17/1998 $7,850.00 $12,283.64
11/18/1998 $7,810.00 $12,339.27
11/19/1998 $7,750.00 $12,426.93
11/20/1998 $7,690.00 $12,544.88
11/23/1998 $7,510.00 $12,810.75
11/24/1998 $7,560.00 $12,754.47
11/25/1998 $7,560.00 $12,796.30
11/27/1998 $7,510.00 $12,854.74
11/30/1998 $7,710.00 $12,545.74
12/1/1998 $7,630.00 $12,671.35
12/2/1998 $7,650.00 $12,627.90
12/3/1998 $7,780.00 $12,400.30
12/4/1998 $7,600.00 $12,687.09
12/7/1998 $7,550.00 $12,805.25
12/8/1998 $7,580.00 $12,737.11
12/9/1998 $7,560.00 $12,759.86
12/10/1998 $7,680.00 $12,560.73
12/11/1998 $7,700.00 $12,576.25
12/14/1998 $7,936.30 $12,303.91
12/15/1998 $7,694.59 $12,537.12
12/16/1998 $7,704.66 $12,527.52
12/17/1998 $7,593.87 $12,722.02
12/18/1998 $7,543.52 $12,808.81
12/21/1998 $7,422.66 $12,968.49
12/22/1998 $7,412.59 $12,976.36
12/23/1998 $7,251.44 $13,245.57
12/24/1998 $7,271.59 $13,221.10
12/28/1998 $7,301.80 $13,212.69
12/29/1998 $7,180.94 $13,388.64
12/30/1998 $7,261.52 $13,282.12
12/31/1998 $7,241.37 $13,253.01
1/4/1999 $7,281.66 $13,240.83
1/5/1999 $7,211.16 $13,420.66
1/6/1999 $7,070.16 $13,717.80
1/7/1999 $7,090.30 $13,689.66
1/8/1999 $7,029.87 $13,747.45
1/11/1999 $7,110.44 $13,626.59
1/12/1999 $7,231.30 $13,363.85
1/13/1999 $7,301.80 $13,308.75
1/14/1999 $7,422.66 $13,069.29
1/15/1999 $7,241.37 $13,404.28
1/19/1999 $7,180.94 $13,498.51
1/20/1999 $7,120.52 $13,548.32
1/21/1999 $7,311.87 $13,316.95
1/22/1999 $7,321.94 $13,209.45
1/25/1999 $7,261.52 $13,304.22
1/26/1999 $7,130.59 $13,501.85
1/27/1999 $7,221.23 $13,403.31
1/28/1999 $7,120.52 $13,642.66
1/29/1999 $7,029.87 $13,796.51
2/1/1999 $7,080.23 $13,724.92
2/2/1999 $7,090.30 $13,606.21
2/3/1999 $7,039.94 $13,714.89
2/4/1999 $7,160.80 $13,460.66
2/5/1999 $7,251.44 $13,362.66
2/8/1999 $7,221.23 $13,409.77
2/9/1999 $7,392.44 $13,111.88
2/10/1999 $7,352.16 $13,191.77
2/11/1999 $7,130.59 $13,520.50
2/12/1999 $7,332.02 $13,262.71
2/16/1999 $7,311.87 $13,389.29
2/17/1999 $7,382.37 $13,196.95
2/18/1999 $7,332.02 $13,339.80
2/19/1999 $7,291.73 $13,360.39
2/22/1999 $7,090.30 $13,715.65
2/23/1999 $7,090.30 $13,705.30
2/24/1999 $7,201.09 $13,513.71
2/25/1999 $7,271.59 $13,423.25
2/26/1999 $7,301.80 $13,351.12
3/1/1999 $7,281.66 $13,327.73
3/2/1999 $7,342.09 $13,212.80
3/3/1999 $7,332.02 $13,236.51
3/4/1999 $7,231.30 $13,440.72
3/5/1999 $7,060.09 $13,751.55
3/8/1999 $7,019.80 $13,829.82
3/9/1999 $7,039.94 $13,798.66
3/10/1999 $6,989.59 $13,874.14
3/11/1999 $6,898.94 $13,991.01
3/12/1999 $6,989.59 $13,957.69
3/15/1999 $6,909.01 $14,094.30
3/16/1999 $6,909.01 $14,084.59
3/17/1999 $6,949.30 $13,992.52
3/18/1999 $6,858.66 $14,194.46
3/19/1999 $6,959.37 $14,008.37
3/22/1999 $6,949.30 $13,983.78
3/23/1999 $7,150.73 $13,607.83
3/24/1999 $7,110.44 $13,677.37
3/25/1999 $6,979.51 $13,908.10
3/26/1999 $7,019.80 $13,830.58
3/29/1999 $6,909.01 $14,125.67
3/30/1999 $6,909.01 $14,024.11
3/31/1999 $7,029.87 $13,869.07
4/1/1999 $6,969.44 $13,948.31
4/5/1999 $6,818.37 $14,243.73
4/6/1999 $6,838.51 $14,208.90
4/7/1999 $6,798.23 $14,305.94
4/8/1999 $6,707.59 $14,490.19
4/9/1999 $6,687.44 $14,537.31
4/12/1999 $6,627.01 $14,648.14
4/13/1999 $6,677.37 $14,553.16
4/14/1999 $6,778.09 $14,322.65
4/15/1999 $6,818.37 $14,262.38
4/16/1999 $6,858.66 $14,220.87
4/19/1999 $6,969.44 $13,902.60
4/20/1999 $6,898.94 $14,082.54
4/21/1999 $6,697.51 $14,405.45
4/22/1999 $6,606.87 $14,650.30
4/23/1999 $6,627.01 $14,628.95
4/26/1999 $6,596.80 $14,663.35
4/27/1999 $6,576.66 $14,693.10
4/28/1999 $6,657.23 $14,564.91
4/29/1999 $6,717.66 $14,477.79
4/30/1999 $6,768.01 $14,395.32
5/3/1999 $6,667.30 $14,605.02
5/4/1999 $6,747.87 $14,361.03
5/5/1999 $6,697.51 $14,526.10
5/6/1999 $6,747.87 $14,361.57
5/7/1999 $6,707.59 $14,501.19
5/10/1999 $6,727.73 $14,450.52
5/11/1999 $6,687.44 $14,615.58
5/12/1999 $6,627.01 $14,706.04
5/13/1999 $6,616.94 $14,744.42
5/14/1999 $6,808.30 $14,423.56
5/17/1999 $6,808.30 $14,441.78
5/18/1999 $6,798.23 $14,375.26
5/19/1999 $6,757.94 $14,492.89
5/20/1999 $6,788.16 $14,434.67
5/21/1999 $6,818.37 $14,342.60
5/24/1999 $6,909.01 $14,087.72
5/25/1999 $7,060.09 $13,847.83
5/26/1999 $6,959.37 $14,067.34
5/27/1999 $7,050.02 $13,815.59
5/28/1999 $6,989.59 $14,035.86
6/1/1999 $6,999.66 $13,954.14
6/2/1999 $6,999.66 $13,960.07
6/3/1999 $6,949.30 $14,011.06
6/4/1999 $6,808.30 $14,315.21
6/7/1999 $6,796.21 $14,388.20
6/8/1999 $6,850.60 $14,202.87
6/9/1999 $6,870.74 $14,216.99
6/10/1999 $6,933.19 $14,046.42
6/11/1999 $6,993.61 $13,947.45
6/14/1999 $6,993.61 $13,951.33
6/15/1999 $6,943.26 $14,028.53
6/16/1999 $6,820.39 $14,343.89
6/17/1999 $6,761.97 $14,446.21
6/18/1999 $6,755.93 $14,477.90
6/21/1999 $6,741.83 $14,544.32
6/22/1999 $6,794.20 $14,402.86
6/23/1999 $6,828.44 $14,372.46
6/24/1999 $6,876.79 $14,186.15
6/25/1999 $6,898.94 $14,181.09
6/28/1999 $6,820.39 $14,354.02
6/29/1999 $6,757.94 $14,570.73
6/30/1999 $6,633.06 $14,799.95
7/1/1999 $6,578.67 $14,888.90
7/2/1999 $6,514.21 $14,999.51
7/6/1999 $6,526.30 $14,966.09
7/7/1999 $6,522.27 $15,049.54
7/8/1999 $6,520.26 $15,034.02
7/9/1999 $6,479.97 $15,129.54
7/12/1999 $6,502.13 $15,084.47
7/13/1999 $6,530.33 $15,024.74
7/14/1999 $6,504.14 $15,074.45
7/15/1999 $6,459.83 $15,197.90
7/16/1999 $6,423.57 $15,296.65
7/19/1999 $6,467.89 $15,176.66
7/20/1999 $6,606.87 $14,847.28
7/21/1999 $6,616.94 $14,870.89
7/22/1999 $6,703.56 $14,673.37
7/23/1999 $6,729.74 $14,629.92
7/26/1999 $6,770.03 $14,530.95
7/27/1999 $6,725.71 $14,693.53
7/28/1999 $6,705.57 $14,721.14
7/29/1999 $6,798.23 $14,458.39
7/30/1999 $6,888.87 $14,325.67
8/2/1999 $6,868.73 $14,318.44
8/3/1999 $6,907.00 $14,255.16
8/4/1999 $7,007.71 $14,073.49
8/5/1999 $6,945.27 $14,163.84
8/6/1999 $7,017.79 $14,019.15
8/9/1999 $7,035.91 $13,992.30
8/10/1999 $7,106.42 $13,815.81
8/11/1999 $7,023.83 $14,036.83
8/12/1999 $7,029.87 $13,996.18
8/13/1999 $6,870.74 $14,314.46
8/16/1999 $6,838.51 $14,347.77
8/17/1999 $6,796.21 $14,492.14
8/18/1999 $6,860.67 $14,370.09
8/19/1999 $6,900.96 $14,270.36
8/20/1999 $6,832.47 $14,410.73
8/23/1999 $6,705.57 $14,665.29
8/24/1999 $6,681.40 $14,700.65
8/25/1999 $6,614.93 $14,897.85
8/26/1999 $6,691.47 $14,684.59
8/27/1999 $6,768.01 $14,536.45
8/30/1999 $6,894.91 $14,274.99
8/31/1999 $6,927.14 $14,236.07
9/1/1999 $6,850.61 $14,351.00
9/2/1999 $6,931.18 $14,222.05
9/3/1999 $6,703.57 $14,633.15
9/7/1999 $6,753.93 $14,559.95
9/8/1999 $6,788.17 $14,492.02
9/9/1999 $6,788.17 $14,529.87
9/10/1999 $6,739.83 $14,572.99
9/13/1999 $6,784.14 $14,491.81
9/14/1999 $6,830.47 $14,407.28
9/15/1999 $6,935.21 $14,209.76
9/16/1999 $6,907.01 $14,215.26
9/17/1999 $6,816.37 $14,397.90
9/20/1999 $6,830.47 $14,399.09
9/21/1999 $6,981.54 $14,097.74
9/22/1999 $6,977.51 $14,129.33
9/23/1999 $7,140.67 $13,804.81
9/24/1999 $7,154.77 $13,771.92
9/27/1999 $7,110.45 $13,836.07
9/28/1999 $7,124.56 $13,824.11
9/29/1999 $7,205.13 $13,675.00
9/30/1999 $7,100.38 $13,829.61
10/1/1999 $7,126.57 $13,830.68
10/4/1999 $6,989.60 $14,065.61
10/5/1999 $7,005.71 $14,030.57
10/6/1999 $6,900.97 $14,289.87
10/7/1999 $6,933.20 $14,206.21
10/8/1999 $6,842.55 $14,404.37
10/11/1999 $6,842.55 $14,395.64
10/12/1999 $6,951.33 $14,156.61
10/13/1999 $7,126.57 $13,860.23
10/14/1999 $7,126.57 $13,837.26
10/15/1999 $7,309.87 $13,449.02
10/18/1999 $7,255.48 $13,521.47
10/19/1999 $7,205.13 $13,598.99
10/20/1999 $7,102.40 $13,902.06
10/21/1999 $7,084.27 $13,839.31
10/22/1999 $7,015.78 $14,033.81
10/25/1999 $7,050.03 $13,947.34
10/26/1999 $7,134.63 $13,820.98
10/27/1999 $7,019.81 $13,980.55
10/28/1999 $6,782.13 $14,473.59
10/29/1999 $6,665.30 $14,694.50
11/1/1999 $6,735.80 $14,599.52
11/2/1999 $6,784.14 $14,530.73
11/3/1999 $6,741.84 $14,608.25
11/4/1999 $6,699.54 $14,691.37
11/5/1999 $6,627.02 $14,773.21
11/8/1999 $6,633.07 $14,846.31
11/9/1999 $6,687.45 $14,719.84
11/10/1999 $6,639.11 $14,808.03
11/11/1999 $6,598.82 $14,894.28
11/12/1999 $6,530.34 $15,051.69
11/15/1999 $6,524.30 $15,033.69
11/16/1999 $6,383.30 $15,310.13
11/17/1999 $6,441.71 $15,209.64
11/18/1999 $6,395.38 $15,363.07
11/19/1999 $6,401.42 $15,331.37
11/22/1999 $6,403.44 $15,319.94
11/23/1999 $6,469.91 $15,144.20
11/24/1999 $6,429.62 $15,278.32
11/26/1999 $6,457.82 $15,273.36
11/29/1999 $6,477.97 $15,178.59
11/30/1999 $6,554.51 $14,974.61
12/1/1999 $6,502.14 $15,069.59
12/2/1999 $6,457.82 $15,191.64
12/3/1999 $6,324.88 $15,453.20
12/6/1999 $6,371.21 $15,345.82
12/7/1999 $6,421.57 $15,193.04
12/8/1999 $6,461.85 $15,136.01
12/9/1999 $6,431.64 $15,181.61
12/10/1999 $6,407.47 $15,277.89
12/13/1999 $6,399.41 $15,258.27
12/14/1999 $6,447.75 $15,128.35
12/15/1999 $6,429.62 $15,237.89
12/16/1999 $6,391.35 $15,296.65
12/17/1999 $6,361.14 $15,321.13
12/20/1999 $6,407.47 $15,289.21
12/21/1999 $6,316.82 $15,454.60
12/22/1999 $6,300.71 $15,483.71
12/23/1999 $6,206.04 $15,723.17
12/27/1999 $6,216.11 $15,709.69
12/28/1999 $6,216.11 $15,715.84
12/29/1999 $6,197.98 $15,778.37
12/30/1999 $6,206.04 $15,789.26
12/31/1999 $6,195.97 $15,840.80
1/3/2000 $6,264.45 $15,689.53
1/4/2000 $6,512.21 $15,087.92
1/5/2000 $6,504.15 $15,116.92
1/6/2000 $6,546.45 $15,131.37
1/7/2000 $6,282.58 $15,541.28
1/10/2000 $6,222.15 $15,715.19
1/11/2000 $6,312.79 $15,509.91
1/12/2000 $6,367.18 $15,441.88
1/13/2000 $6,294.67 $15,629.80
1/14/2000 $6,133.52 $15,796.59
1/18/2000 $6,175.82 $15,688.67
1/19/2000 $6,157.69 $15,696.86
1/20/2000 $6,230.21 $15,585.49
1/21/2000 $6,246.32 $15,540.10
1/24/2000 $6,429.62 $15,110.67
1/25/2000 $6,397.40 $15,202.31
1/26/2000 $6,403.44 $15,138.27
1/27/2000 $6,431.64 $15,078.65
1/28/2000 $6,637.10 $14,664.64
1/31/2000 $6,457.82 $15,034.44
2/1/2000 $6,385.31 $15,194.23
2/2/2000 $6,391.35 $15,192.50
2/3/2000 $6,304.74 $15,363.39
2/4/2000 $6,330.92 $15,356.92
2/7/2000 $6,340.99 $15,355.52
2/8/2000 $6,282.58 $15,543.98
2/9/2000 $6,409.48 $15,220.32
2/10/2000 $6,401.42 $15,275.63
2/11/2000 $6,508.18 $14,955.31
2/14/2000 $6,500.12 $14,985.71
2/15/2000 $6,449.77 $15,116.28
2/16/2000 $6,520.27 $14,961.24
2/17/2000 $6,560.55 $14,967.49
2/18/2000 $6,721.70 $14,512.94
2/22/2000 $6,737.81 $14,578.49
2/23/2000 $6,661.27 $14,670.35
2/24/2000 $6,713.64 $14,592.08
2/25/2000 $6,790.18 $14,375.69
2/28/2000 $6,749.90 $14,534.07
2/29/2000 $6,612.92 $14,732.13
3/1/2000 $6,564.58 $14,869.81
3/2/2000 $6,562.57 $14,897.52
3/3/2000 $6,437.68 $15,193.04
3/6/2000 $6,498.11 $15,000.16
3/7/2000 $6,707.60 $14,615.69
3/8/2000 $6,637.10 $14,735.15
3/9/2000 $6,453.80 $15,112.39
3/10/2000 $6,484.01 $15,041.02
3/13/2000 $6,546.45 $14,917.57
3/14/2000 $6,641.12 $14,653.75
3/15/2000 $6,484.01 $15,009.43
3/16/2000 $6,185.89 $15,724.57
3/17/2000 $6,143.59 $15,789.26
3/20/2000 $6,179.85 $15,704.73
3/21/2000 $6,042.88 $16,106.24
3/22/2000 $6,002.59 $16,179.23
3/23/2000 $5,903.89 $16,467.20
3/24/2000 $5,861.59 $16,468.39
3/27/2000 $5,932.09 $16,429.58
3/28/2000 $5,962.31 $16,255.67
3/29/2000 $5,956.26 $16,264.19
3/30/2000 $6,058.99 $16,042.09
3/31/2000 $5,984.47 $16,157.02
4/3/2000 $5,958.28 $16,236.69
4/4/2000 $6,002.59 $16,115.51
4/5/2000 $6,038.85 $16,036.16
4/6/2000 $5,986.48 $16,186.78
4/7/2000 $5,942.16 $16,348.61
4/10/2000 $5,974.39 $16,220.41
4/11/2000 $5,990.51 $16,178.69
4/12/2000 $6,157.69 $15,818.37
4/13/2000 $6,240.28 $15,530.93
4/14/2000 $6,616.95 $14,625.82
4/17/2000 $6,399.41 $15,109.70
4/18/2000 $6,204.02 $15,542.79
4/19/2000 $6,258.41 $15,390.34
4/20/2000 $6,230.21 $15,466.57
4/24/2000 $6,276.54 $15,416.11
4/25/2000 $6,040.87 $15,929.10
4/26/2000 $6,105.32 $15,751.74
4/27/2000 $6,131.51 $15,794.11
4/28/2000 $6,161.72 $15,659.45
5/1/2000 $6,083.17 $15,830.01
5/2/2000 $6,199.99 $15,593.25
5/3/2000 $6,312.79 $15,256.98
5/4/2000 $6,318.84 $15,197.35
5/5/2000 $6,238.27 $15,445.98
5/8/2000 $6,280.57 $15,354.76
5/9/2000 $6,320.85 $15,225.06
5/10/2000 $6,461.85 $14,911.43
5/11/2000 $6,330.92 $15,178.38
5/12/2000 $6,260.42 $15,320.16
5/15/2000 $6,147.62 $15,658.70
5/16/2000 $6,089.21 $15,806.19
5/17/2000 $6,153.67 $15,609.53
5/18/2000 $6,206.04 $15,495.36
5/19/2000 $6,326.89 $15,169.11
5/22/2000 $6,373.22 $15,101.94
5/23/2000 $6,471.92 $14,812.34
5/24/2000 $6,373.22 $15,083.93
5/25/2000 $6,439.70 $14,894.93
5/26/2000 $6,475.95 $14,857.20
5/30/2000 $6,260.42 $15,336.22
5/31/2000 $6,276.54 $15,316.27
6/1/2000 $6,153.67 $15,620.42
6/2/2000 $6,038.85 $15,927.16
6/5/2000 $6,071.08 $15,823.33
6/6/2000 $6,081.15 $15,717.78
6/7/2000 $6,038.85 $15,863.55
6/8/2000 $6,067.05 $15,759.07
6/9/2000 $6,081.15 $15,708.18
6/12/2000 $6,145.61 $15,590.13
6/13/2000 $6,036.84 $15,842.84
6/14/2000 $6,024.75 $15,854.70
6/15/2000 $6,018.71 $15,943.01
6/16/2000 $6,063.02 $15,789.15
6/19/2000 $5,990.51 $16,021.39
6/20/2000 $5,998.57 $15,913.03
6/21/2000 $6,002.59 $15,947.32
6/22/2000 $6,093.24 $15,656.76
6/23/2000 $6,143.59 $15,541.39
6/26/2000 $6,079.14 $15,689.85
6/27/2000 $6,113.38 $15,639.18
6/28/2000 $6,105.32 $15,685.22
6/29/2000 $6,163.74 $15,551.20
6/30/2000 $6,117.41 $15,682.85
7/3/2000 $6,046.91 $15,843.92
7/5/2000 $6,151.65 $15,592.60
7/6/2000 $6,109.35 $15,705.16
7/7/2000 $6,018.71 $15,944.84
7/10/2000 $6,032.81 $15,909.47
7/11/2000 $6,018.71 $15,966.19
7/12/2000 $5,978.42 $16,096.00
7/13/2000 $5,958.28 $16,127.48
7/14/2000 $5,903.89 $16,279.93
7/17/2000 $5,911.95 $16,285.43
7/18/2000 $5,956.26 $16,104.84
7/19/2000 $6,002.59 $15,977.83
7/20/2000 $5,942.16 $16,123.49
7/21/2000 $6,018.71 $15,958.75
7/24/2000 $6,083.17 $15,787.32
7/25/2000 $6,061.01 $15,897.08
7/26/2000 $6,127.48 $15,659.34
7/27/2000 $6,147.62 $15,629.15
7/28/2000 $6,276.54 $15,308.62
7/31/2000 $6,252.37 $15,426.57
8/1/2000 $6,214.09 $15,504.95
8/2/2000 $6,189.92 $15,511.42
8/3/2000 $6,147.62 $15,660.85
8/4/2000 $6,111.37 $15,772.66
8/7/2000 $6,044.89 $15,949.37
8/8/2000 $6,026.77 $15,986.99
8/9/2000 $6,077.12 $15,879.83
8/10/2000 $6,109.35 $15,743.76
8/11/2000 $6,091.22 $15,868.72
8/14/2000 $6,010.65 $16,081.33
8/15/2000 $6,020.72 $16,004.46
8/16/2000 $6,038.85 $15,955.08
8/17/2000 $5,980.44 $16,129.96
8/18/2000 $5,998.57 $16,083.06
8/21/2000 $5,970.37 $16,166.72
8/22/2000 $5,972.38 $16,152.17
8/23/2000 $5,958.28 $16,236.69
8/24/2000 $5,944.18 $16,261.92
8/25/2000 $5,950.22 $16,241.98
8/28/2000 $5,926.05 $16,324.24
8/29/2000 $5,928.06 $16,278.42
8/30/2000 $5,986.48 $16,200.25
8/31/2000 $5,907.92 $16,362.95
</TABLE>
<TABLE>
<CAPTION>
SINCE
1 YEAR INCEPTION(2)
------ ------------
<S> <C> <C>
U.S. PLUS FUND (14.71%) (17.03%)
S&P 500 INDEX(1) 14.94% 19.09%
</TABLE>
The Potomac U.S./Short Fund provides, on a daily basis, a return inverse to that
of the S&P 500 Index. The principal securities in the portfolio include short
positions in Standard & Poor's Depositary Receipts ("SPDRs"), S&P 500 futures
contracts, and options on the S&P 500 Index. For the year, the S&P 500 gained
14.94%, while the Fund declined (14.71%).
(1) RETURN DOES NOT INCLUDE CONTINUOUS REINVESTMENT OF DIVIDENDS.
(2) AVERAGE ANNUAL RATE OF RETURN.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
4
<PAGE>
--------------------------------------------------------------------------------
OTC PLUS FUND
--------------------------------------------------------------------------------
INVESTOR CLASS
OCTOBER 20, 1997 - AUGUST 31, 2000
[GRAPH]
<TABLE>
<CAPTION>
OTC PLUS FUND NASDAQ 100 INDEX(1)
<S> <C> <C>
10/20/97 $10,000.00 $10,000.00
10/21/97 $10,204.92 $10,050.00
10/22/97 $10,096.12 $9,930.00
10/23/97 $9,875.03 $9,800.00
10/24/97 $9,715.97 $9,690.00
10/27/97 $8,994.72 $9,590.00
10/28/97 $9,619.76 $9,710.00
10/29/97 $9,462.53 $9,550.00
10/30/97 $9,195.50 $9,260.00
10/31/97 $9,369.35 $9,490.00
11/03/97 $9,655.13 $9,710.00
11/04/97 $9,626.65 $9,710.00
11/05/97 $9,620.22 $9,720.00
11/06/97 $9,503.06 $9,560.00
11/07/97 $9,449.30 $9,500.00
11/10/97 $9,295.11 $9,410.00
11/11/97 $9,289.78 $9,400.00
11/12/97 $9,006.57 $9,010.00
11/13/97 $9,237.31 $9,310.00
11/14/97 $9,444.98 $9,560.00
11/17/97 $9,645.76 $9,820.00
11/18/97 $9,522.72 $9,650.00
11/19/97 $9,548.54 $9,660.00
11/20/97 $9,763.29 $9,950.00
11/21/97 $9,709.07 $9,880.00
11/24/97 $9,466.76 $9,570.00
11/25/97 $9,538.80 $9,660.00
11/26/97 $9,595.59 $9,740.00
11/28/97 $9,653.20 $9,810.00
12/01/97 $9,917.11 $10,150.00
12/02/97 $9,667.54 $9,830.00
12/03/97 $9,755.30 $9,940.00
12/04/97 $9,673.88 $9,830.00
12/05/97 $9,834.78 $10,040.00
12/08/97 $9,951.02 $10,180.00
12/09/97 $9,654.67 $9,810.00
12/10/97 $9,494.23 $9,610.00
12/11/97 $9,206.34 $9,110.00
12/12/97 $8,991.41 $8,840.00
12/15/97 $9,045.53 $8,870.00
12/16/97 $9,164.35 $9,030.00
12/17/97 $9,038.64 $8,870.00
12/18/97 $8,883.71 $8,670.00
12/19/97 $8,912.47 $8,720.00
12/22/97 $8,965.68 $8,750.00
12/23/97 $8,725.66 $8,460.00
12/24/97 $8,628.44 $8,340.00
12/26/97 $8,767.01 $8,510.00
12/29/97 $8,991.78 $8,790.00
12/30/97 $9,174.91 $9,020.00
12/31/97 $9,104.53 $8,920.00
1/02/98 $9,264.69 $9,100.00
1/05/98 $9,349.14 $9,200.00
1/06/98 $9,246.86 $9,080.00
1/07/98 $9,108.11 $8,910.00
1/08/98 $9,138.89 $8,950.00
1/09/98 $8,786.49 $8,510.00
1/12/98 $8,924.14 $8,670.00
1/13/98 $9,143.58 $8,940.00
1/14/98 $9,155.71 $8,940.00
1/15/98 $9,148.45 $8,920.00
1/16/98 $9,243.00 $9,050.00
1/20/98 $9,436.07 $9,290.00
1/21/98 $9,432.76 $9,280.00
1/22/98 $9,378.64 $9,220.00
1/23/98 $9,413.92 $9,270.00
1/26/98 $9,339.77 $9,160.00
1/27/98 $9,517.67 $9,400.00
1/28/98 $9,770.00 $9,710.00
1/29/98 $9,823.11 $9,770.00
1/30/98 $9,842.68 $9,800.00
2/02/98 $10,117.07 $10,140.00
2/03/98 $10,211.44 $10,250.00
2/04/98 $10,332.55 $10,410.00
2/05/98 $10,244.52 $10,280.00
2/06/98 $10,423.34 $10,500.00
2/09/98 $10,316.75 $10,370.00
2/10/98 $10,473.60 $10,570.00
2/11/98 $10,464.60 $10,560.00
2/12/98 $10,519.64 $10,630.00
2/13/98 $10,445.12 $10,520.00
2/17/98 $10,371.05 $10,440.00
2/18/98 $10,482.33 $10,570.00
2/19/98 $10,629.45 $10,760.00
2/20/98 $10,656.83 $10,800.00
2/23/98 $10,893.91 $11,100.00
2/24/98 $10,773.26 $10,950.00
2/25/98 $11,030.46 $11,280.00
2/26/98 $11,090.93 $11,350.00
2/27/98 $10,972.94 $11,190.00
3/02/98 $10,820.95 $11,000.00
3/03/98 $10,803.77 $10,980.00
3/04/98 $10,841.90 $11,020.00
3/05/98 $10,354.51 $10,390.00
3/06/98 $10,687.89 $10,790.00
3/09/98 $10,368.67 $10,380.00
3/10/98 $10,554.65 $10,610.00
3/11/98 $10,602.99 $10,660.00
3/12/98 $10,689.36 $10,770.00
3/13/98 $10,744.68 $10,840.00
3/16/98 $10,844.66 $10,970.00
3/17/98 $10,731.82 $10,830.00
3/18/98 $10,815.62 $10,930.00
3/19/98 $10,899.70 $11,030.00
3/20/98 $10,745.97 $10,830.00
3/23/98 $10,835.56 $10,950.00
3/24/98 $11,006.75 $11,170.00
3/25/98 $11,163.06 $11,360.00
3/26/98 $11,191.73 $11,400.00
3/27/98 $11,133.84 $11,320.00
3/30/98 $11,087.89 $11,260.00
3/31/98 $11,216.72 $11,420.00
4/01/98 $11,287.94 $11,510.00
4/02/98 $11,304.20 $11,530.00
4/03/98 $11,336.18 $11,570.00
4/06/98 $11,076.22 $11,230.00
4/07/98 $10,862.67 $10,960.00
4/08/98 $10,944.73 $11,060.00
4/09/98 $10,998.39 $11,130.00
4/13/98 $11,054.17 $11,200.00
4/14/98 $11,147.44 $11,310.00
4/15/98 $11,315.05 $11,520.00
4/16/98 $11,279.85 $11,480.00
4/17/98 $11,314.04 $11,520.00
4/20/98 $11,514.91 $11,780.00
4/21/98 $11,667.36 $11,980.00
4/22/98 $11,862.16 $12,230.00
4/23/98 $11,565.17 $11,840.00
4/24/98 $11,487.62 $11,730.00
4/27/98 $11,211.12 $11,370.00
4/28/98 $11,233.63 $11,400.00
4/29/98 $11,390.40 $11,600.00
4/30/98 $11,469.06 $11,700.00
5/01/98 $11,500.39 $11,730.00
5/04/98 $11,539.81 $11,780.00
5/05/98 $11,461.25 $11,670.00
5/06/98 $11,415.12 $11,610.00
5/07/98 $11,235.29 $11,400.00
5/08/98 $11,523.36 $11,760.00
5/11/98 $11,373.03 $11,570.00
5/12/98 $11,545.23 $11,800.00
5/13/98 $11,606.52 $11,880.00
5/14/98 $11,634.28 $11,910.00
5/15/98 $11,481.64 $11,710.00
5/18/98 $11,417.41 $11,630.00
5/19/98 $11,537.70 $11,780.00
5/20/98 $11,373.77 $11,570.00
5/21/98 $11,244.66 $11,390.00
5/22/98 $11,156.72 $11,280.00
5/26/98 $11,027.98 $11,120.00
5/27/98 $11,113.81 $11,230.00
5/28/98 $11,163.15 $11,290.00
5/29/98 $10,954.01 $11,010.00
6/01/98 $10,710.31 $10,710.00
6/02/98 $10,908.80 $10,950.00
6/03/98 $10,695.89 $10,660.00
6/04/98 $10,982.68 $11,040.00
6/05/98 $11,088.44 $11,170.00
6/08/98 $11,091.39 $11,170.00
6/09/98 $11,242.64 $11,350.00
6/10/98 $11,020.45 $11,070.00
6/11/98 $10,890.05 $10,910.00
6/12/98 $10,907.33 $10,940.00
6/15/98 $10,784.01 $10,790.00
6/16/98 $11,127.04 $11,210.00
6/17/98 $11,248.15 $11,360.00
6/18/98 $11,278.02 $11,400.00
6/19/98 $11,391.78 $11,550.00
6/22/98 $11,614.33 $11,840.00
6/23/98 $11,967.75 $12,290.00
6/24/98 $12,232.12 $12,620.00
6/25/98 $12,050.54 $12,380.00
6/26/98 $12,138.20 $12,500.00
6/29/98 $12,310.68 $12,720.00
6/30/98 $12,288.90 $12,690.00
7/01/98 $12,461.66 $12,920.00
7/02/98 $12,244.70 $12,630.00
7/06/98 $12,337.05 $12,750.00
7/07/98 $12,371.42 $12,790.00
7/08/98 $12,661.06 $13,180.00
7/09/98 $12,710.50 $13,240.00
7/10/98 $12,783.00 $13,340.00
7/13/98 $13,053.80 $13,700.00
7/14/98 $13,031.29 $13,670.00
7/15/98 $13,320.28 $14,050.00
7/16/98 $13,348.22 $14,080.00
7/17/98 $13,452.52 $14,220.00
7/20/98 $13,470.16 $14,220.00
7/21/98 $13,157.73 $13,800.00
7/22/98 $13,145.69 $13,800.00
7/23/98 $12,917.99 $13,500.00
7/24/98 $12,943.72 $13,530.00
7/27/98 $13,107.01 $13,750.00
7/28/98 $12,802.94 $13,340.00
7/29/98 $12,681.64 $13,180.00
7/30/98 $13,067.31 $13,690.00
7/31/98 $12,655.73 $13,150.00
8/03/98 $12,574.68 $13,040.00
8/04/98 $12,104.20 $12,440.00
8/05/98 $12,220.54 $12,590.00
8/06/98 $12,551.07 $13,020.00
8/07/98 $12,534.53 $12,990.00
8/10/98 $12,523.59 $12,970.00
8/11/98 $12,222.65 $12,590.00
8/12/98 $12,448.06 $12,880.00
8/13/98 $12,298.55 $12,690.00
8/14/98 $12,221.82 $12,580.00
8/17/98 $12,568.71 $13,050.00
8/18/98 $12,876.09 $13,440.00
8/19/98 $12,848.70 $13,390.00
8/20/98 $12,848.15 $13,410.00
8/21/98 $12,632.85 $13,130.00
8/24/98 $12,597.47 $13,070.00
8/25/98 $12,757.64 $13,300.00
8/26/98 $12,626.23 $13,130.00
8/27/98 $12,058.63 $12,400.00
8/28/98 $11,624.53 $11,830.00
8/31/98 $10,478.66 $10,410.00
9/01/98 $11,165.27 $11,240.00
9/02/98 $11,223.89 $11,300.00
9/03/98 $11,109.21 $11,170.00
9/04/98 $11,076.59 $11,110.00
9/08/98 $11,821.46 $12,060.00
9/09/98 $11,594.49 $11,760.00
9/10/98 $11,351.90 $11,450.00
9/11/98 $11,855.73 $12,090.00
9/14/98 $12,021.41 $12,300.00
9/15/98 $12,168.07 $12,470.00
9/16/98 $12,234.78 $12,550.00
9/17/98 $11,870.34 $12,070.00
9/18/98 $11,952.22 $12,180.00
9/21/98 $12,200.32 $12,500.00
9/22/98 $12,278.34 $12,590.00
9/23/98 $12,815.53 $13,290.00
9/24/98 $12,464.60 $12,820.00
9/25/98 $12,773.63 $13,240.00
9/28/98 $12,710.77 $13,140.00
9/29/98 $12,725.84 $13,180.00
9/30/98 $12,363.70 $12,700.00
10/01/98 $11,704.48 $11,840.00
10/02/98 $11,729.29 $11,890.00
10/05/98 $11,097.45 $11,070.00
10/06/98 $10,887.57 $10,840.00
10/07/98 $10,577.44 $10,440.00
10/08/98 $10,373.35 $10,200.00
10/09/98 $11,007.31 $11,000.00
10/12/98 $11,425.68 $11,500.00
10/13/98 $11,090.28 $11,060.00
10/14/98 $11,354.65 $11,400.00
10/15/98 $11,942.66 $12,140.00
10/16/98 $11,889.82 $12,050.00
10/19/98 $12,039.24 $12,250.00
10/20/98 $11,910.00 $11,791.68
10/21/98 $12,490.00 $12,240.29
10/22/98 $12,780.00 $12,452.93
10/23/98 $12,580.00 $12,318.86
10/26/98 $12,930.00 $12,579.19
10/27/98 $12,730.00 $12,435.93
10/28/98 $13,060.00 $12,680.54
10/29/98 $13,240.00 $12,830.69
10/30/98 $13,280.00 $12,869.47
11/02/98 $13,490.00 $13,037.35
11/03/98 $13,270.00 $12,880.59
11/04/98 $13,670.00 $13,177.12
11/05/98 $13,770.00 $13,251.00
11/06/98 $13,970.00 $13,400.78
11/09/98 $14,080.00 $13,486.15
11/10/98 $14,180.00 $13,576.66
11/11/98 $14,260.00 $13,606.34
11/12/98 $14,070.00 $13,476.13
11/13/98 $14,050.00 $13,464.00
11/16/98 $14,170.00 $13,559.38
11/17/98 $14,450.00 $13,770.27
11/18/98 $14,640.00 $13,920.42
11/19/98 $14,900.00 $14,127.73
11/20/98 $14,990.00 $14,189.94
11/23/98 $15,540.00 $14,601.98
11/24/98 $15,430.00 $14,526.35
11/25/98 $15,650.00 $14,688.54
11/27/98 $16,020.00 $14,963.01
11/30/98 $15,140.00 $14,316.20
12/01/98 $16,080.00 $15,001.42
12/02/98 $15,900.00 $14,877.92
12/03/98 $15,350.00 $14,461.57
12/04/98 $16,040.00 $14,978.27
12/07/98 $16,600.00 $15,409.05
12/08/98 $16,490.00 $15,328.83
12/09/98 $16,700.00 $15,487.07
12/10/98 $16,300.00 $15,187.32
12/11/98 $16,570.00 $15,391.78
12/14/98 $15,877.98 $14,831.98
12/15/98 $16,430.00 $15,288.58
12/16/98 $16,339.67 $15,219.66
12/17/98 $16,741.13 $15,526.12
12/18/98 $17,303.18 $15,943.03
12/21/98 $17,985.68 $16,423.62
12/22/98 $17,734.76 $16,244.61
12/23/98 $18,427.29 $16,714.54
12/24/98 $18,216.52 $16,595.82
12/28/98 $18,417.25 $16,760.76
12/29/98 $18,397.18 $16,754.51
12/30/98 $18,116.15 $16,641.12
12/31/98 $18,216.52 $16,871.22
1/04/99 $18,497.55 $17,040.11
1/05/99 $19,129.85 $17,486.79
1/06/99 $19,882.60 $18,046.86
1/07/99 $19,912.71 $18,068.92
1/08/99 $20,003.04 $18,136.09
1/11/99 $20,344.29 $18,379.78
1/12/99 $19,581.50 $17,824.49
1/13/99 $19,681.87 $17,906.82
1/14/99 $19,139.89 $17,515.46
1/15/99 $20,093.37 $18,209.23
1/19/99 $20,735.72 $18,687.89
1/20/99 $20,745.76 $18,687.89
1/21/99 $19,782.24 $18,026.74
1/22/99 $19,832.42 $18,049.25
1/25/99 $20,274.03 $18,352.03
1/26/99 $21,087.00 $18,949.69
1/27/99 $20,675.50 $18,657.11
1/28/99 $21,608.91 $19,339.22
1/29/99 $21,889.93 $19,546.89
2/01/99 $21,930.08 $19,581.25
2/02/99 $21,257.62 $19,101.22
2/03/99 $21,779.53 $19,480.27
2/04/99 $20,605.24 $18,632.30
2/05/99 $20,083.34 $18,274.20
2/08/99 $20,665.46 $18,693.87
2/09/99 $19,400.84 $17,783.87
2/10/99 $19,511.25 $17,865.20
2/11/99 $20,765.83 $18,788.70
2/12/99 $19,671.83 $17,997.70
2/16/99 $19,601.58 $17,959.94
2/17/99 $18,838.79 $17,379.92
2/18/99 $18,999.38 $17,515.18
2/19/99 $19,310.51 $17,751.16
2/22/99 $20,123.48 $18,343.03
2/23/99 $20,494.84 $18,637.54
2/24/99 $20,033.15 $18,278.34
2/25/99 $19,812.35 $18,142.80
2/26/99 $19,220.18 $17,691.52
3/01/99 $19,370.73 $17,805.65
3/02/99 $18,748.46 $17,355.02
3/03/99 $18,878.94 $17,457.48
3/04/99 $19,260.33 $17,762.74
3/05/99 $19,762.16 $18,101.26
3/08/99 $20,545.02 $18,691.02
3/09/99 $20,474.77 $18,640.66
3/10/99 $20,625.32 $18,732.00
3/11/99 $20,675.50 $18,780.24
3/12/99 $20,213.81 $18,460.46
3/15/99 $20,866.20 $18,932.60
3/16/99 $21,026.78 $19,051.78
3/17/99 $20,926.42 $18,970.82
3/18/99 $21,398.14 $19,322.49
3/19/99 $20,735.72 $18,871.49
3/22/99 $20,414.55 $18,627.52
3/23/99 $19,581.50 $18,022.61
3/24/99 $20,243.92 $18,502.64
3/25/99 $21,117.11 $19,144.04
3/26/99 $20,906.34 $18,996.55
3/29/99 $21,879.90 $19,707.42
3/30/99 $21,639.02 $19,533.10
3/31/99 $21,398.14 $19,355.75
4/01/99 $21,889.93 $19,720.93
4/05/99 $22,833.38 $20,396.42
4/06/99 $22,823.34 $20,388.97
4/07/99 $22,482.10 $20,145.10
4/08/99 $22,893.60 $20,443.37
4/09/99 $22,993.97 $20,514.31
4/12/99 $22,813.31 $20,392.46
4/13/99 $22,271.33 $19,988.05
4/14/99 $21,337.92 $19,330.39
4/15/99 $21,749.42 $19,626.10
4/16/99 $21,046.86 $19,172.62
4/19/99 $19,601.58 $18,082.61
4/20/99 $20,374.40 $18,656.38
4/21/99 $21,368.03 $19,350.52
4/22/99 $22,311.47 $20,064.23
4/23/99 $22,652.72 $20,311.88
4/26/99 $23,295.06 $20,773.35
4/27/99 $22,622.61 $20,280.54
4/28/99 $21,859.82 $19,760.53
4/29/99 $21,458.36 $19,474.29
4/30/99 $21,729.35 $19,631.43
5/03/99 $21,709.27 $19,645.76
5/04/99 $21,197.40 $19,274.52
5/05/99 $21,950.15 $19,809.51
5/06/99 $20,966.56 $19,100.67
5/07/99 $21,448.32 $19,459.96
5/10/99 $21,659.09 $19,616.36
5/11/99 $22,160.92 $19,994.03
5/12/99 $22,682.83 $20,378.41
5/13/99 $22,201.07 $20,023.71
5/14/99 $21,518.58 $19,528.14
5/17/99 $22,140.85 $19,993.02
5/18/99 $21,950.15 $19,841.58
5/19/99 $22,291.40 $20,089.13
5/20/99 $21,679.16 $19,664.14
5/21/99 $21,347.95 $19,429.36
5/24/99 $20,665.46 $18,934.90
5/25/99 $19,892.64 $18,369.31
5/26/99 $20,555.06 $18,865.52
5/27/99 $20,534.99 $18,838.41
5/28/99 $21,016.75 $19,202.39
6/01/99 $20,243.92 $18,615.12
6/02/99 $20,826.05 $19,063.08
6/03/99 $20,294.11 $18,657.48
6/04/99 $21,257.62 $19,383.50
6/07/99 $21,799.60 $19,781.21
6/08/99 $20,966.56 $19,175.28
6/09/99 $21,558.72 $19,623.06
6/10/99 $21,117.11 $19,276.73
6/11/99 $20,685.54 $18,950.52
6/14/99 $20,253.96 $18,643.88
6/15/99 $20,605.24 $18,912.66
6/16/99 $21,970.23 $19,917.21
6/17/99 $22,261.29 $20,131.68
6/18/99 $22,441.95 $20,266.11
6/21/99 $23,234.84 $20,846.86
6/22/99 $22,492.13 $20,306.82
6/23/99 $22,853.45 $20,577.35
6/24/99 $22,170.96 $20,076.91
6/25/99 $22,170.96 $20,085.09
6/28/99 $22,883.56 $20,619.71
6/29/99 $23,345.25 $20,951.62
6/30/99 $23,586.13 $21,105.17
7/01/99 $23,907.30 $21,339.95
7/02/99 $24,248.55 $21,574.82
7/06/99 $24,027.74 $21,417.23
7/07/99 $24,128.11 $21,508.57
7/08/99 $24,549.65 $21,820.17
7/09/99 $24,800.56 $21,989.62
7/12/99 $24,670.09 $21,908.94
7/13/99 $24,539.61 $21,811.72
7/14/99 $25,111.70 $22,210.43
7/15/99 $25,252.21 $22,322.72
7/16/99 $25,643.64 $22,600.32
7/19/99 $25,202.03 $22,279.99
7/20/99 $23,967.52 $21,404.27
7/21/99 $24,358.95 $21,719.55
7/22/99 $23,355.28 $20,968.71
7/23/99 $23,566.05 $21,153.41
7/26/99 $22,712.94 $20,523.87
7/27/99 $23,616.24 $21,215.53
7/28/99 $23,987.59 $21,445.26
7/29/99 $23,084.30 $20,795.41
7/30/99 $23,164.59 $20,867.72
8/02/99 $23,084.30 $20,811.49
8/03/99 $22,763.12 $20,575.97
8/04/99 $22,311.47 $20,255.73
8/05/99 $22,642.68 $20,512.11
8/06/99 $22,401.80 $20,327.59
8/09/99 $22,080.63 $20,102.09
8/10/99 $21,779.53 $19,883.02
8/11/99 $22,753.09 $20,600.05
8/12/99 $22,401.80 $20,347.62
8/13/99 $23,576.09 $21,199.72
8/16/99 $23,666.42 $21,255.04
8/17/99 $23,957.48 $21,478.25
8/18/99 $23,706.57 $21,294.65
8/19/99 $23,214.77 $20,939.95
8/20/99 $23,696.53 $21,273.33
8/23/99 $24,599.83 $21,923.92
8/24/99 $24,820.64 $22,098.05
8/25/99 $25,553.31 $22,613.55
8/26/99 $24,991.26 $22,212.73
8/27/99 $24,770.45 $22,077.37
8/30/99 $24,328.84 $21,749.41
8/31/99 $24,690.16 $22,025.00
9/1/1999 $24,810.60 $22,099.16
9/2/1999 $24,650.02 $21,985.76
9/3/1999 $26,105.33 $23,034.14
9/7/1999 $25,914.64 $22,897.50
9/8/1999 $25,442.91 $22,556.13
9/9/1999 $26,095.30 $23,023.21
9/10/1999 $26,496.76 $23,290.70
9/13/1999 $25,834.34 $22,817.37
9/14/1999 $26,306.07 $23,179.05
9/15/1999 $25,553.32 $22,633.50
9/16/1999 $25,583.43 $22,668.33
9/17/1999 $26,476.69 $23,311.84
9/20/1999 $26,587.09 $23,389.94
9/21/1999 $25,663.72 $22,731.36
9/22/1999 $26,165.55 $23,100.76
9/23/1999 $24,720.27 $22,081.97
9/24/1999 $24,690.16 $22,049.90
9/27/1999 $25,011.34 $22,297.36
9/28/1999 $25,031.41 $22,312.07
9/29/1999 $24,639.98 $22,042.55
9/30/1999 $24,780.49 $22,126.36
10/1/1999 $24,740.35 $22,094.65
10/4/1999 $25,533.24 $22,677.88
10/5/1999 $25,593.46 $22,710.78
10/6/1999 $26,326.14 $23,270.39
10/7/1999 $26,306.07 $23,266.72
10/8/1999 $26,627.24 $23,481.38
10/11/1999 $26,918.30 $23,697.50
10/12/1999 $26,245.85 $23,219.12
10/13/1999 $25,302.40 $22,554.47
10/14/1999 $25,503.13 $22,706.09
10/15/1999 $24,589.80 $22,088.77
10/18/1999 $24,077.93 $21,705.59
10/19/1999 $24,057.86 $21,706.87
10/20/1999 $25,362.62 $22,662.91
10/21/1999 $25,533.24 $22,762.61
10/22/1999 $25,683.79 $22,843.10
10/25/1999 $25,623.57 $22,827.39
10/26/1999 $25,372.66 $22,663.92
10/27/1999 $25,282.33 $22,581.77
10/28/1999 $26,346.21 $23,339.59
10/29/1999 $27,570.68 $24,235.61
11/1/1999 $27,289.66 $24,041.91
11/2/1999 $27,430.17 $24,139.59
11/3/1999 $28,002.26 $24,559.80
11/4/1999 $28,423.80 $24,839.06
11/5/1999 $29,126.37 $25,322.31
11/8/1999 $29,507.76 $25,603.22
11/9/1999 $29,206.66 $25,394.72
11/10/1999 $29,648.27 $25,707.43
11/11/1999 $30,330.76 $26,187.10
11/12/1999 $30,862.71 $26,546.39
11/15/1999 $30,692.08 $26,426.56
11/16/1999 $31,575.31 $27,018.16
11/17/1999 $31,163.81 $26,755.72
11/18/1999 $32,318.02 $27,599.27
11/19/1999 $32,649.23 $27,832.21
11/22/1999 $32,910.18 $28,023.07
11/23/1999 $32,237.73 $27,565.18
11/24/1999 $33,683.01 $28,564.40
11/26/1999 $33,783.37 $28,638.83
11/29/1999 $33,070.77 $28,148.23
11/30/1999 $31,766.00 $27,261.30
12/1/1999 $32,167.47 $27,542.21
12/2/1999 $33,662.93 $28,563.94
12/3/1999 $34,506.01 $29,151.12
12/6/1999 $34,777.00 $29,323.14
12/7/1999 $34,947.62 $29,451.70
12/8/1999 $34,375.53 $29,074.94
12/9/1999 $34,395.61 $29,106.55
12/10/1999 $34,907.48 $29,435.16
12/13/1999 $35,449.46 $29,794.36
12/14/1999 $34,425.72 $29,104.44
12/15/1999 $35,379.20 $29,765.04
12/16/1999 $36,663.89 $30,620.82
12/17/1999 $37,015.46 $30,873.98
12/20/1999 $37,437.35 $31,151.03
12/21/1999 $39,396.10 $32,423.90
12/22/1999 $39,767.77 $32,734.12
12/23/1999 $40,169.56 $32,991.32
12/27/1999 $40,270.01 $33,066.95
12/28/1999 $40,008.84 $32,896.40
12/29/1999 $41,545.71 $33,904.72
12/30/1999 $41,435.22 $33,849.49
12/31/1999 $41,756.66 $34,071.50
1/3/2000 $42,921.87 $34,831.62
1/4/2000 $39,416.19 $32,586.27
1/5/2000 $38,833.59 $32,228.91
1/6/2000 $36,493.13 $30,698.93
1/7/2000 $39,165.07 $32,433.73
1/10/2000 $41,796.84 $34,159.53
1/11/2000 $39,345.88 $32,569.27
1/12/2000 $38,431.79 $31,960.86
1/13/2000 $40,270.01 $33,191.65
1/14/2000 $41,565.80 $34,043.11
1/18/2000 $42,299.08 $34,530.49
1/19/2000 $42,771.19 $34,834.74
1/20/2000 $43,434.16 $35,302.01
1/21/2000 $43,544.65 $35,377.54
1/24/2000 $40,842.57 $33,640.81
1/25/2000 $42,228.77 $34,542.72
1/26/2000 $40,300.15 $33,275.54
1/27/2000 $39,938.53 $33,017.70
1/28/2000 $37,869.28 $31,666.72
1/31/2000 $39,597.00 $32,805.43
2/1/2000 $41,364.91 $34,015.91
2/2/2000 $41,666.25 $34,224.31
2/3/2000 $43,484.38 $35,388.57
2/4/2000 $43,815.86 $35,601.85
2/7/2000 $44,609.41 $36,143.73
2/8/2000 $46,447.63 $37,334.08
2/9/2000 $45,031.29 $36,466.45
2/10/2000 $46,799.20 $37,583.29
2/11/2000 $45,071.47 $36,470.40
2/14/2000 $45,302.51 $36,628.82
2/15/2000 $45,483.31 $36,728.98
2/16/2000 $45,463.23 $36,737.62
2/17/2000 $47,190.95 $37,908.39
2/18/2000 $44,930.85 $36,441.54
2/22/2000 $44,971.02 $36,472.60
2/23/2000 $47,853.91 $38,319.24
2/24/2000 $49,049.26 $39,081.56
2/25/2000 $47,954.36 $38,397.25
2/28/2000 $47,683.15 $38,246.09
2/29/2000 $48,988.99 $39,209.20
3/1/2000 $49,822.71 $39,595.78
3/2/2000 $48,667.55 $38,908.90
3/3/2000 $51,711.15 $40,825.83
3/6/2000 $51,902.01 $40,957.33
3/7/2000 $50,967.83 $40,347.63
3/8/2000 $51,741.29 $40,851.65
3/9/2000 $53,790.45 $42,143.45
3/10/2000 $53,800.49 $42,151.72
3/13/2000 $51,470.08 $40,678.16
3/14/2000 $48,526.92 $38,842.10
3/15/2000 $47,040.27 $37,950.94
3/16/2000 $50,274.73 $40,003.04
3/17/2000 $51,480.12 $40,803.59
3/20/2000 $48,918.67 $39,155.99
3/21/2000 $51,580.57 $40,885.19
3/22/2000 $53,629.73 $42,240.40
3/23/2000 $54,634.22 $42,826.75
3/24/2000 $55,106.33 $43,111.52
3/27/2000 $55,246.96 $43,232.08
3/28/2000 $53,489.10 $42,117.08
3/29/2000 $51,018.06 $40,559.81
3/30/2000 $48,677.59 $39,055.28
3/31/2000 $50,756.89 $40,412.05
4/3/2000 $46,146.28 $37,464.01
4/4/2000 $45,493.36 $37,070.26
4/5/2000 $45,443.14 $37,034.33
4/6/2000 $46,256.77 $37,553.24
4/7/2000 $49,129.61 $39,435.16
4/10/2000 $44,850.49 $36,740.28
4/11/2000 $43,675.23 $35,921.99
4/12/2000 $39,838.08 $33,389.67
4/13/2000 $38,723.10 $32,656.20
4/14/2000 $33,881.45 $29,457.39
4/17/2000 $38,271.08 $32,432.35
4/18/2000 $40,722.03 $34,144.83
4/19/2000 $38,883.81 $32,925.07
4/20/2000 $37,849.19 $32,210.35
4/24/2000 $35,719.67 $30,815.81
4/25/2000 $39,275.57 $33,278.76
4/26/2000 $37,698.52 $32,214.21
4/27/2000 $40,179.61 $33,931.27
4/28/2000 $41,294.59 $34,672.01
5/1/2000 $42,058.00 $35,192.66
5/2/2000 $39,225.34 $33,331.60
5/3/2000 $38,371.52 $32,732.93
5/4/2000 $38,482.02 $32,811.68
5/5/2000 $39,988.75 $33,892.59
5/8/2000 $37,768.83 $32,360.22
5/9/2000 $36,714.12 $31,653.03
5/10/2000 $34,062.26 $29,816.04
5/11/2000 $35,870.34 $31,073.47
5/12/2000 $36,201.83 $31,300.26
5/15/2000 $37,577.98 $32,273.02
5/16/2000 $39,376.01 $33,511.52
5/17/2000 $38,110.36 $32,625.78
5/18/2000 $36,432.86 $31,484.96
5/19/2000 $34,182.80 $29,962.24
5/22/2000 $34,263.16 $29,999.64
5/23/2000 $31,119.11 $27,782.41
5/24/2000 $32,997.50 $29,224.08
5/25/2000 $32,043.24 $28,479.49
5/26/2000 $32,053.28 $28,499.34
5/30/2000 $36,051.15 $31,371.75
5/31/2000 $34,865.85 $30,545.20
6/1/2000 $37,387.12 $32,336.14
6/2/2000 $40,480.95 $34,511.10
6/5/2000 $40,239.88 $34,278.07
6/6/2000 $39,044.53 $33,506.28
6/7/2000 $40,249.92 $34,330.45
6/8/2000 $39,898.35 $34,066.72
6/9/2000 $40,561.31 $34,553.28
6/12/2000 $39,004.35 $33,433.69
6/13/2000 $40,681.85 $34,604.28
6/14/2000 $39,506.60 $33,792.70
6/15/2000 $40,480.95 $34,477.47
6/16/2000 $40,912.88 $34,802.31
6/19/2000 $42,871.64 $36,147.03
6/20/2000 $42,911.82 $36,148.23
6/21/2000 $43,363.84 $36,480.60
6/22/2000 $41,123.83 $34,956.22
6/23/2000 $39,466.42 $33,864.47
6/26/2000 $40,641.67 $34,656.11
6/27/2000 $39,667.32 $33,990.36
6/28/2000 $40,631.63 $34,652.52
6/29/2000 $39,205.25 $33,685.56
6/30/2000 $40,491.00 $34,585.72
7/3/2000 $41,063.56 $34,962.38
7/5/2000 $39,004.35 $33,538.26
7/6/2000 $40,892.79 $34,858.54
7/7/2000 $41,535.67 $35,297.69
7/10/2000 $40,631.63 $34,663.00
7/11/2000 $40,239.88 $34,408.74
7/12/2000 $42,309.13 $35,847.65
7/13/2000 $43,082.58 $36,358.11
7/14/2000 $44,197.57 $37,134.40
7/17/2000 $44,488.87 $37,324.89
7/18/2000 $43,122.76 $36,397.53
7/19/2000 $41,545.71 $35,322.59
7/20/2000 $43,614.96 $36,714.55
7/21/2000 $42,339.26 $35,917.77
7/24/2000 $40,732.08 $34,832.26
7/25/2000 $41,716.48 $35,519.33
7/26/2000 $41,113.78 $35,086.43
7/27/2000 $39,225.34 $33,830.75
7/28/2000 $36,513.22 $31,953.24
7/31/2000 $38,200.76 $33,166.56
8/1/2000 $37,125.96 $32,356.08
8/2/2000 $36,663.89 $32,072.97
8/3/2000 $38,441.84 $33,296.59
8/4/2000 $38,341.39 $33,251.83
8/7/2000 $39,546.78 $34,095.02
8/8/2000 $39,235.39 $33,874.30
8/9/2000 $39,295.66 $33,935.59
8/10/2000 $38,009.91 $33,036.44
8/11/2000 $38,632.69 $33,490.57
8/14/2000 $39,627.14 $34,179.75
8/15/2000 $39,677.36 $34,207.41
8/16/2000 $39,667.32 $34,194.82
8/17/2000 $41,063.56 $35,199.55
8/18/2000 $40,772.26 $34,987.47
8/21/2000 $41,043.47 $35,172.26
8/22/2000 $41,003.29 $35,174.74
8/23/2000 $41,887.24 $35,809.06
8/24/2000 $42,630.56 $36,292.86
8/25/2000 $42,399.53 $36,124.52
8/28/2000 $42,660.70 $36,335.78
8/29/2000 $42,670.74 $36,314.64
8/30/2000 $42,851.55 $36,468.93
8/31/2000 $44,328.15 $37,469.25
</TABLE>
<TABLE>
<CAPTION>
SINCE
1 YEAR INCEPTION(2)
------ ------------
<S> <C> <C>
OTC PLUS FUND 79.54% 68.05%
NASDAQ 100 INDEX(1) 70.12% 58.49%
</TABLE>
The OTC Plus Fund seeks to provide daily investment returns that correspond to
125% of the return of the Nasdaq 100 Index ("NDX"). The principal securities in
the Fund's portfolio include long positions in the 100 stocks that comprise the
NDX, NDX futures contracts and options on the NDX. During the Fund's fiscal
year, the NDX experienced considerable volatility: the NDX (and the Fund) gained
through mid-March, declined from mid-March through the end of May and gained
from June through the end of the fiscal year. Despite the volatility in the NDX
and the decline in the market in the second half of the Fund's fiscal year, the
Fund gained 79.54% for the year while the NDX gained 70.12%.
(1) RETURN DOES NOT INCLUDE CONTINUOUS REINVESTMENT OF DIVIDENDS.
(2) AVERAGE ANNUAL RATE OF RETURN.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
5
<PAGE>
--------------------------------------------------------------------------------
OTC/SHORT FUND
--------------------------------------------------------------------------------
INVESTOR CLASS
OCTOBER 16, 1997 - AUGUST 31, 2000
[GRAPH]
<TABLE>
<CAPTION>
OTC/SHORT FUND NASDAQ 100 INDEX(1)
<S> <C> <C>
10/16/97 $10,000.00 $10,000.00
10/17/97 $9,779.33 $10,410.00
10/20/97 $9,898.76 $10,110.00
10/21/97 $10,101.60 $9,720.00
10/22/97 $9,993.91 $9,740.00
10/23/97 $9,775.06 $9,950.00
10/24/97 $9,617.60 $10,170.00
10/27/97 $8,903.65 $10,940.00
10/28/97 $9,522.37 $10,260.00
10/29/97 $9,366.73 $10,430.00
10/30/97 $9,102.40 $10,720.00
10/31/97 $9,274.50 $10,520.00
11/03/97 $9,557.39 $10,200.00
11/04/97 $9,529.19 $10,220.00
11/05/97 $9,522.82 $10,190.00
11/06/97 $9,406.85 $10,290.00
11/07/97 $9,353.64 $10,390.00
11/10/97 $9,201.00 $10,560.00
11/11/97 $9,195.73 $10,570.00
11/12/97 $8,915.39 $10,890.00
11/13/97 $9,143.79 $10,620.00
11/14/97 $9,349.36 $10,380.00
11/17/97 $9,548.11 $10,150.00
11/18/97 $9,426.31 $10,290.00
11/19/97 $9,451.87 $10,260.00
11/20/97 $9,664.45 $10,020.00
11/21/97 $9,610.78 $10,080.00
11/24/97 $9,370.92 $10,450.00
11/25/97 $9,442.23 $10,360.00
11/26/97 $9,498.44 $10,300.00
11/28/97 $9,555.48 $10,210.00
12/01/97 $9,816.71 $10,040.00
12/02/97 $9,569.67 $10,290.00
12/03/97 $9,656.53 $10,190.00
12/04/97 $9,575.94 $10,270.00
12/05/97 $9,735.21 $10,120.00
12/08/97 $9,850.28 $9,990.00
12/09/97 $9,556.93 $10,280.00
12/10/97 $9,398.12 $10,470.00
12/11/97 $9,113.14 $10,690.00
12/12/97 $8,900.38 $10,890.00
12/15/97 $8,953.96 $10,870.00
12/16/97 $9,071.57 $10,750.00
12/17/97 $8,947.13 $10,900.00
12/18/97 $8,793.77 $11,080.00
12/19/97 $8,822.25 $11,050.00
12/22/97 $8,874.91 $10,980.00
12/23/97 $8,637.32 $11,280.00
12/24/97 $8,541.09 $11,400.00
12/26/97 $8,678.26 $11,220.00
12/29/97 $8,900.74 $10,900.00
12/30/97 $9,082.03 $10,660.00
12/31/97 $9,012.35 $10,710.00
1/02/98 $9,170.90 $10,590.00
1/05/98 $9,254.49 $10,540.00
1/06/98 $9,153.25 $10,600.00
1/07/98 $9,015.90 $10,740.00
1/08/98 $9,046.37 $10,740.00
1/09/98 $8,697.54 $11,130.00
1/12/98 $8,833.80 $10,940.00
1/13/98 $9,051.01 $10,660.00
1/14/98 $9,063.02 $10,750.00
1/15/98 $9,055.83 $10,750.00
1/16/98 $9,149.43 $10,660.00
1/20/98 $9,340.54 $10,440.00
1/21/98 $9,337.26 $10,370.00
1/22/98 $9,283.69 $10,420.00
1/23/98 $9,318.62 $10,370.00
1/26/98 $9,245.21 $10,450.00
1/27/98 $9,421.31 $10,240.00
1/28/98 $9,671.09 $9,970.00
1/29/98 $9,723.66 $9,920.00
1/30/98 $9,743.04 $9,890.00
2/02/98 $10,014.64 $9,620.00
2/03/98 $10,108.06 $9,530.00
2/04/98 $10,227.95 $9,420.00
2/05/98 $10,140.81 $8,900.00
2/06/98 $10,317.82 $8,740.00
2/09/98 $10,212.30 $8,840.00
2/10/98 $10,367.57 $8,700.00
2/11/98 $10,358.66 $8,710.00
2/12/98 $10,413.14 $8,660.00
2/13/98 $10,339.37 $8,740.00
2/17/98 $10,266.06 $8,800.00
2/18/98 $10,376.21 $8,700.00
2/19/98 $10,521.84 $8,588.00
2/20/98 $10,548.95 $8,620.00
2/23/98 $10,783.62 $8,440.00
2/24/98 $10,664.19 $8,520.00
2/25/98 $10,918.79 $8,330.00
2/26/98 $10,978.64 $8,250.00
2/27/98 $10,861.85 $8,340.00
3/02/98 $10,711.40 $8,460.00
3/03/98 $10,694.39 $8,470.00
3/04/98 $10,732.14 $8,440.00
3/05/98 $10,249.69 $8,830.00
3/06/98 $10,579.69 $8,550.00
3/09/98 $10,263.69 $8,810.00
3/10/98 $10,447.80 $8,650.00
3/11/98 $10,495.64 $8,620.00
3/12/98 $10,581.15 $8,540.00
3/13/98 $10,635.90 $8,500.00
3/16/98 $10,734.87 $8,420.00
3/17/98 $10,623.17 $8,510.00
3/18/98 $10,706.13 $8,440.00
3/19/98 $10,789.35 $8,370.00
3/20/98 $10,637.18 $8,500.00
3/23/98 $10,725.86 $8,420.00
3/24/98 $10,895.32 $8,290.00
3/25/98 $11,050.05 $8,170.00
3/26/98 $11,078.43 $8,150.00
3/27/98 $11,021.12 $8,190.00
3/30/98 $10,975.64 $8,220.00
3/31/98 $11,103.17 $8,150.00
4/01/98 $11,173.66 $8,100.00
4/02/98 $11,189.76 $8,090.00
4/03/98 $11,221.42 $8,070.00
4/06/98 $10,964.09 $8,260.00
4/07/98 $10,752.70 $8,420.00
4/08/98 $10,833.92 $8,350.00
4/09/98 $10,887.05 $8,300.00
4/13/98 $10,942.26 $8,260.00
4/14/98 $11,034.58 $8,190.00
4/15/98 $11,200.49 $8,060.00
4/16/98 $11,165.66 $8,090.00
4/17/98 $11,199.49 $8,070.00
4/20/98 $11,398.33 $7,920.00
4/21/98 $11,549.24 $7,810.00
4/22/98 $11,742.07 $7,670.00
4/23/98 $11,448.09 $7,860.00
4/24/98 $11,371.32 $7,920.00
4/27/98 $11,097.62 $8,110.00
4/28/98 $11,119.90 $8,100.00
4/29/98 $11,275.08 $7,990.00
4/30/98 $11,352.94 $7,940.00
5/01/98 $11,383.96 $7,920.00
5/04/98 $11,422.98 $7,890.00
5/05/98 $11,345.21 $7,950.00
5/06/98 $11,299.55 $7,980.00
5/07/98 $11,121.54 $8,110.00
5/08/98 $11,406.70 $7,900.00
5/11/98 $11,257.89 $8,000.00
5/12/98 $11,428.35 $7,870.00
5/13/98 $11,489.02 $7,830.00
5/14/98 $11,516.49 $7,810.00
5/15/98 $11,365.41 $7,910.00
5/18/98 $11,301.82 $7,950.00
5/19/98 $11,420.89 $7,870.00
5/20/98 $11,258.62 $7,980.00
5/21/98 $11,130.82 $8,070.00
5/22/98 $11,043.77 $8,140.00
5/26/98 $10,916.33 $8,230.00
5/27/98 $11,001.29 $8,160.00
5/28/98 $11,050.14 $8,130.00
5/29/98 $10,843.11 $8,290.00
6/01/98 $10,601.88 $8,470.00
6/02/98 $10,798.36 $8,310.00
6/03/98 $10,587.60 $8,480.00
6/04/98 $10,871.49 $8,250.00
6/05/98 $10,976.19 $8,160.00
6/08/98 $10,979.10 $8,170.00
6/09/98 $11,128.82 $8,060.00
6/10/98 $10,908.88 $8,220.00
6/11/98 $10,779.80 $8,310.00
6/12/98 $10,796.90 $8,300.00
6/15/98 $10,674.83 $8,390.00
6/16/98 $11,014.39 $8,120.00
6/17/98 $11,134.28 $8,030.00
6/18/98 $11,163.84 $8,010.00
6/19/98 $11,276.45 $7,930.00
6/22/98 $11,496.75 $7,760.00
6/23/98 $11,846.59 $7,520.00
6/24/98 $12,108.28 $7,360.00
6/25/98 $11,928.54 $7,470.00
6/26/98 $12,015.32 $7,420.00
6/29/98 $12,186.05 $7,310.00
6/30/98 $12,164.49 $7,320.00
7/01/98 $12,335.50 $7,210.00
7/02/98 $12,120.74 $7,340.00
7/06/98 $12,212.16 $7,280.00
7/07/98 $12,246.18 $7,260.00
7/08/98 $12,532.88 $7,080.00
7/09/98 $12,581.82 $7,050.00
7/10/98 $12,653.59 $7,010.00
7/13/98 $12,921.65 $6,850.00
7/14/98 $12,899.36 $6,860.00
7/15/98 $13,185.43 $6,700.00
7/16/98 $13,213.08 $6,690.00
7/17/98 $13,316.32 $6,630.00
7/20/98 $13,333.79 $6,640.00
7/21/98 $13,024.52 $6,800.00
7/22/98 $13,012.61 $6,800.00
7/23/98 $12,787.21 $6,920.00
7/24/98 $12,812.68 $6,900.00
7/27/98 $12,974.31 $6,820.00
7/28/98 $12,673.32 $6,980.00
7/29/98 $12,553.26 $7,050.00
7/30/98 $12,935.02 $6,830.00
7/31/98 $12,527.61 $7,060.00
8/03/98 $12,447.38 $7,100.00
8/04/98 $11,981.66 $7,400.00
8/05/98 $12,096.82 $7,330.00
8/06/98 $12,424.00 $7,120.00
8/07/98 $12,407.63 $7,140.00
8/10/98 $12,396.81 $7,150.00
8/11/98 $12,098.91 $7,320.00
8/12/98 $12,322.04 $7,190.00
8/13/98 $12,174.04 $7,270.00
8/14/98 $12,098.09 $7,320.00
8/17/98 $12,441.47 $7,110.00
8/18/98 $12,745.73 $6,930.00
8/19/98 $12,718.62 $6,950.00
8/20/98 $12,718.08 $6,940.00
8/21/98 $12,504.96 $7,060.00
8/24/98 $12,469.94 $7,080.00
8/25/98 $12,628.48 $6,990.00
8/26/98 $12,498.41 $7,050.00
8/27/98 $11,936.55 $7,370.00
8/28/98 $11,506.85 $7,630.00
8/31/98 $10,372.57 $8,380.00
9/01/98 $11,052.23 $7,830.00
9/02/98 $11,110.26 $7,800.00
9/03/98 $10,996.74 $7,870.00
9/04/98 $10,964.45 $7,900.00
9/08/98 $11,701.78 $7,370.00
9/09/98 $11,477.11 $7,510.00
9/10/98 $11,236.97 $7,670.00
9/11/98 $11,735.71 $7,330.00
9/14/98 $11,899.71 $7,230.00
9/15/98 $12,044.88 $7,150.00
9/16/98 $12,110.92 $7,110.00
9/17/98 $11,750.17 $7,330.00
9/18/98 $11,831.21 $7,280.00
9/21/98 $12,076.81 $7,130.00
9/22/98 $12,154.03 $7,080.00
9/23/98 $12,685.79 $6,770.00
9/24/98 $12,338.41 $6,960.00
9/25/98 $12,644.31 $6,790.00
9/28/98 $12,582.09 $6,810.00
9/29/98 $12,597.01 $6,800.00
9/30/98 $12,238.53 $6,990.00
10/01/98 $11,585.98 $7,360.00
10/02/98 $11,610.54 $7,350.00
10/05/98 $10,985.10 $7,750.00
10/06/98 $10,777.35 $7,900.00
10/07/98 $10,470.36 $8,120.00
10/08/98 $10,268.33 $8,270.00
10/09/98 $10,895.87 $7,760.00
10/12/98 $11,310.01 $7,460.00
10/13/98 $10,978.01 $7,680.00
10/14/98 $11,239.70 $7,500.00
10/15/98 $11,821.75 $7,120.00
10/16/98 $11,769.45 $7,150.00
10/19/98 $11,917.35 $7,060.00
10/20/98 $11,672.31 $7,210.00
10/21/98 $12,116.38 $6,930.00
10/22/98 $12,326.86 $6,810.00
10/23/98 $12,194.15 $6,890.00
10/26/98 $12,451.84 $6,740.00
10/27/98 $12,310.03 $6,820.00
10/28/98 $12,552.17 $6,690.00
10/29/98 $12,700.80 $6,610.00
10/30/98 $12,739.18 $6,590.00
11/02/98 $12,905.37 $6,510.00
11/03/98 $12,750.19 $6,590.00
11/04/98 $13,043.72 $6,440.00
11/05/98 $13,116.85 $6,400.00
11/06/98 $13,265.11 $6,320.00
11/09/98 $13,349.62 $6,280.00
11/10/98 $13,439.21 $6,250.00
11/11/98 $13,468.59 $6,220.00
11/12/98 $13,339.70 $6,280.00
11/13/98 $13,327.69 $6,290.00
11/16/98 $13,422.11 $6,240.00
11/17/98 $13,630.87 $6,140.00
11/18/98 $13,779.49 $6,090.00
11/19/98 $13,984.70 $5,990.00
11/20/98 $14,046.28 $5,960.00
11/23/98 $14,454.15 $5,790.00
11/24/98 $14,379.29 $5,810.00
11/25/98 $14,539.83 $5,760.00
11/27/98 $14,811.53 $5,650.00
11/30/98 $14,171.26 $5,920.00
12/01/98 $14,849.55 $5,620.00
12/02/98 $14,727.30 $5,670.00
12/03/98 $14,315.16 $5,830.00
12/04/98 $14,826.63 $5,620.00
12/07/98 $15,253.05 $5,460.00
12/08/98 $15,173.64 $5,490.00
12/09/98 $15,330.28 $5,430.00
12/10/98 $15,033.56 $5,540.00
12/11/98 $15,235.95 $5,460.00
12/14/98 $14,681.82 $5,675.27
12/15/98 $15,133.80 $5,495.11
12/16/98 $15,065.58 $5,515.12
12/17/98 $15,368.94 $5,405.02
12/18/98 $15,781.62 $5,254.88
12/21/98 $16,257.35 $5,084.72
12/22/98 $16,080.15 $5,154.79
12/23/98 $16,545.33 $4,994.64
12/24/98 $16,427.81 $5,034.68
12/28/98 $16,591.08 $4,994.64
12/29/98 $16,584.89 $4,994.64
12/30/98 $16,472.65 $5,054.70
12/31/98 $16,700.41 $5,034.68
1/04/99 $16,867.60 $4,974.62
1/05/99 $17,309.76 $4,824.48
1/06/99 $17,864.16 $4,654.32
1/07/99 $17,885.99 $4,654.32
1/08/99 $17,952.48 $4,634.31
1/11/99 $18,193.71 $4,564.24
1/12/99 $17,644.04 $4,704.37
1/13/99 $17,725.54 $4,674.34
1/14/99 $17,338.14 $4,784.45
1/15/99 $18,024.89 $4,604.28
1/19/99 $18,498.70 $4,444.13
1/20/99 $18,498.70 $4,424.11
1/21/99 $17,844.24 $4,584.26
1/22/99 $17,866.52 $4,594.27
1/25/99 $18,166.24 $4,504.19
1/26/99 $18,757.84 $4,334.03
1/27/99 $18,468.23 $4,394.08
1/28/99 $19,143.43 $4,223.92
1/29/99 $19,349.00 $4,183.89
2/01/99 $19,383.02 $4,173.88
2/02/99 $18,907.84 $4,273.97
2/03/99 $19,283.05 $4,193.90
2/04/99 $18,443.67 $4,364.05
2/05/99 $18,089.20 $4,464.15
2/08/99 $18,504.61 $4,354.05
2/09/99 $17,603.83 $4,564.24
2/10/99 $17,684.33 $4,554.23
2/11/99 $18,598.48 $4,324.02
2/12/99 $17,815.50 $4,504.19
2/16/99 $17,778.11 $4,514.19
2/17/99 $17,203.97 $4,664.33
2/18/99 $17,337.86 $4,624.30
2/19/99 $17,571.45 $4,564.24
2/22/99 $18,157.33 $4,414.10
2/23/99 $18,448.85 $4,344.04
2/24/99 $18,093.29 $4,424.11
2/25/99 $17,959.12 $4,454.14
2/26/99 $17,512.42 $4,564.24
3/01/99 $17,625.39 $4,534.21
3/02/99 $17,179.32 $4,644.32
3/03/99 $17,280.74 $4,624.30
3/04/99 $17,582.91 $4,544.22
3/05/99 $17,918.01 $4,454.14
3/08/99 $18,501.79 $4,304.00
3/09/99 $18,451.95 $4,304.00
3/10/99 $18,542.36 $4,283.98
3/11/99 $18,590.11 $4,263.96
3/12/99 $18,273.57 $4,344.04
3/15/99 $18,740.93 $4,233.93
3/16/99 $18,858.90 $4,213.92
3/17/99 $18,778.77 $4,223.92
3/18/99 $19,126.87 $4,143.85
3/19/99 $18,680.44 $4,243.94
3/22/99 $18,438.94 $4,293.99
3/23/99 $17,840.15 $4,434.12
3/24/99 $18,315.32 $4,314.01
3/25/99 $18,950.23 $4,153.86
3/26/99 $18,804.24 $4,183.89
3/29/99 $19,507.90 $4,033.75
3/30/99 $19,335.35 $4,063.78
3/31/99 $19,159.80 $4,093.80
4/01/99 $19,521.27 $4,023.74
4/05/99 $20,189.92 $3,883.61
4/06/99 $20,182.56 $3,883.61
4/07/99 $19,941.15 $3,933.65
4/08/99 $20,236.41 $3,883.61
4/09/99 $20,306.63 $3,863.59
4/12/99 $20,186.01 $3,893.62
4/13/99 $19,785.70 $3,963.68
4/14/99 $19,134.69 $4,093.80
4/15/99 $19,427.41 $4,033.75
4/16/99 $18,978.51 $4,133.84
4/19/99 $17,899.54 $4,364.05
4/20/99 $18,467.50 $4,223.92
4/21/99 $19,154.62 $4,063.78
4/22/99 $19,861.10 $3,903.63
4/23/99 $20,106.24 $3,853.58
4/26/99 $20,563.04 $3,773.51
4/27/99 $20,075.22 $3,853.58
4/28/99 $19,560.48 $3,963.68
4/29/99 $19,277.14 $4,013.73
4/30/99 $19,432.68 $3,983.70
5/03/99 $19,446.87 $3,983.70
5/04/99 $19,079.39 $4,053.77
5/05/99 $19,608.96 $3,943.66
5/06/99 $18,907.29 $4,083.79
5/07/99 $19,262.95 $4,013.73
5/10/99 $19,417.76 $3,983.70
5/11/99 $19,791.61 $3,903.63
5/12/99 $20,172.10 $3,823.55
5/13/99 $19,820.99 $3,893.62
5/14/99 $19,330.44 $3,983.70
5/17/99 $19,790.61 $3,893.62
5/18/99 $19,640.71 $3,913.64
5/19/99 $19,885.75 $3,863.59
5/20/99 $19,465.06 $3,953.67
5/21/99 $19,232.66 $4,003.72
5/24/99 $18,743.20 $4,103.81
5/25/99 $18,183.34 $4,223.92
5/26/99 $18,674.53 $4,113.82
5/27/99 $18,647.69 $4,123.83
5/28/99 $19,007.99 $4,043.76
6/01/99 $18,426.66 $4,163.87
6/02/99 $18,870.09 $4,063.78
6/03/99 $18,468.59 $4,143.85
6/04/99 $19,187.27 $3,993.71
6/07/99 $19,580.95 $3,909.63
6/08/99 $18,981.15 $4,017.73
6/09/99 $19,424.40 $3,921.64
6/10/99 $19,081.57 $3,993.71
6/11/99 $18,758.66 $4,061.77
6/14/99 $18,455.13 $4,125.83
6/15/99 $18,721.19 $4,067.78
6/16/99 $19,715.57 $3,847.57
6/17/99 $19,927.87 $3,803.53
6/18/99 $20,060.94 $3,777.51
6/21/99 $20,635.81 $3,667.41
6/22/99 $20,101.24 $3,765.50
6/23/99 $20,369.03 $3,713.45
6/24/99 $19,873.66 $3,803.53
6/25/99 $19,881.75 $3,801.53
6/28/99 $20,410.96 $3,699.44
6/29/99 $20,739.51 $3,639.38
6/30/99 $20,891.50 $3,617.36
7/01/99 $21,123.91 $3,575.32
7/02/99 $21,356.40 $3,539.29
7/06/99 $21,200.40 $3,561.31
7/07/99 $21,290.82 $3,535.28
7/08/99 $21,599.27 $3,475.23
7/09/99 $21,767.00 $3,455.21
7/12/99 $21,687.13 $3,469.22
7/13/99 $21,590.90 $3,487.24
7/14/99 $21,985.57 $3,421.18
7/15/99 $22,096.73 $3,405.16
7/16/99 $22,371.52 $3,359.12
7/19/99 $22,054.43 $3,413.17
7/20/99 $21,187.58 $3,533.28
7/21/99 $21,499.66 $3,481.23
7/22/99 $20,756.43 $3,601.35
7/23/99 $20,939.26 $3,571.32
7/26/99 $20,316.09 $3,679.42
7/27/99 $21,000.75 $3,549.30
7/28/99 $21,228.15 $3,511.26
7/29/99 $20,584.88 $3,617.36
7/30/99 $20,656.46 $3,611.36
8/02/99 $20,600.79 $3,621.36
8/03/99 $20,367.66 $3,661.40
8/04/99 $20,050.67 $3,723.46
8/05/99 $20,304.44 $3,677.42
8/06/99 $20,121.80 $3,711.45
8/09/99 $19,898.58 $3,753.49
8/10/99 $19,681.73 $3,793.52
8/11/99 $20,391.49 $3,659.40
8/12/99 $20,141.63 $3,707.44
8/13/99 $20,985.10 $3,553.30
8/16/99 $21,039.86 $3,537.29
8/17/99 $21,260.80 $3,509.26
8/18/99 $21,079.06 $3,539.29
8/19/99 $20,727.96 $3,595.34
8/20/99 $21,057.96 $3,537.29
8/23/99 $21,701.96 $3,429.19
8/24/99 $21,874.33 $3,401.16
8/25/99 $22,384.62 $3,327.09
8/26/99 $21,987.85 $3,387.15
8/27/99 $21,853.86 $3,411.17
8/30/99 $21,529.22 $3,461.22
8/31/99 $21,802.02 $3,415.17
9/1/1999 $21,875.43 $3,403.16
9/2/1999 $21,763.18 $3,421.18
9/3/1999 $22,800.95 $3,259.02
9/7/1999 $22,665.69 $3,279.04
9/8/1999 $22,327.77 $3,329.09
9/9/1999 $22,790.12 $3,263.03
9/10/1999 $23,054.91 $3,224.99
9/13/1999 $22,586.37 $3,299.06
9/14/1999 $22,944.39 $3,245.01
9/15/1999 $22,404.36 $3,325.09
9/16/1999 $22,438.83 $3,319.08
9/17/1999 $23,075.83 $3,226.99
9/20/1999 $23,153.15 $3,214.98
9/21/1999 $22,501.23 $3,307.07
9/22/1999 $22,866.89 $3,251.02
9/23/1999 $21,858.42 $3,393.15
9/24/1999 $21,826.67 $3,399.15
9/27/1999 $22,071.63 $3,361.12
9/28/1999 $22,086.18 $3,359.12
9/29/1999 $21,819.39 $3,397.15
9/30/1999 $21,902.35 $3,383.14
10/1/1999 $21,870.97 $3,389.15
10/4/1999 $22,448.29 $3,303.07
10/5/1999 $22,480.86 $3,297.06
10/6/1999 $23,034.81 $3,220.99
10/7/1999 $23,031.17 $3,224.99
10/8/1999 $23,243.65 $3,194.97
10/11/1999 $23,457.59 $3,164.94
10/12/1999 $22,984.05 $3,231.00
10/13/1999 $22,326.13 $3,321.08
10/14/1999 $22,476.22 $3,299.06
10/15/1999 $21,865.15 $3,391.15
10/18/1999 $21,485.84 $3,449.20
10/19/1999 $21,487.12 $3,449.20
10/20/1999 $22,433.47 $3,301.06
10/21/1999 $22,532.16 $3,283.05
10/22/1999 $22,611.84 $3,275.04
10/25/1999 $22,596.29 $3,275.04
10/26/1999 $22,434.47 $3,301.06
10/27/1999 $22,353.15 $3,311.07
10/28/1999 $23,103.30 $3,200.97
10/29/1999 $23,990.25 $3,058.84
11/1/1999 $23,798.51 $3,082.86
11/2/1999 $23,895.20 $3,068.85
11/3/1999 $24,311.16 $3,008.79
11/4/1999 $24,587.59 $2,974.76
11/5/1999 $25,065.95 $2,916.71
11/8/1999 $25,344.02 $2,882.68
11/9/1999 $25,137.63 $2,906.70
11/10/1999 $25,447.17 $2,870.66
11/11/1999 $25,921.98 $2,814.61
11/12/1999 $26,277.63 $2,776.58
11/15/1999 $26,159.02 $2,788.59
11/16/1999 $26,744.62 $2,724.53
11/17/1999 $26,484.84 $2,750.55
11/18/1999 $27,319.86 $2,662.47
11/19/1999 $27,550.44 $2,642.45
11/22/1999 $27,739.37 $2,626.44
11/23/1999 $27,286.11 $2,672.48
11/24/1999 $28,275.22 $2,580.39
11/26/1999 $28,348.89 $2,574.39
11/29/1999 $27,863.26 $2,620.43
11/30/1999 $26,985.31 $2,702.51
12/1/1999 $27,263.37 $2,672.48
12/2/1999 $28,274.76 $2,576.39
12/3/1999 $28,856.00 $2,522.34
12/6/1999 $29,026.28 $2,508.33
12/7/1999 $29,153.53 $2,496.32
12/8/1999 $28,780.59 $2,530.35
12/9/1999 $28,811.88 $2,528.35
12/10/1999 $29,137.16 $2,498.32
12/13/1999 $29,492.72 $2,470.29
12/14/1999 $28,809.79 $2,526.34
12/15/1999 $29,463.70 $2,474.30
12/16/1999 $30,310.82 $2,408.24
12/17/1999 $30,561.41 $2,388.08
12/20/1999 $30,835.66 $2,371.96
12/21/1999 $32,095.64 $2,281.27
12/22/1999 $32,402.72 $2,267.17
12/23/1999 $32,657.32 $2,247.01
12/27/1999 $32,732.18 $2,238.95
12/28/1999 $32,563.36 $2,255.08
12/29/1999 $33,561.47 $2,182.53
12/30/1999 $33,506.80 $2,188.57
12/31/1999 $33,726.56 $2,174.46
1/3/2000 $34,478.99 $2,126.10
1/4/2000 $32,256.37 $2,259.11
1/5/2000 $31,902.62 $2,283.29
1/6/2000 $30,388.13 $2,386.07
1/7/2000 $32,105.37 $2,253.06
1/10/2000 $33,813.70 $2,132.14
1/11/2000 $32,239.54 $2,224.85
1/12/2000 $31,637.29 $2,271.20
1/13/2000 $32,855.62 $2,182.53
1/14/2000 $33,698.45 $2,128.11
1/18/2000 $34,180.91 $2,107.96
1/19/2000 $34,482.08 $2,089.82
1/20/2000 $34,944.61 $2,067.66
1/21/2000 $35,019.38 $2,067.66
1/24/2000 $33,300.23 $2,166.40
1/25/2000 $34,193.01 $2,107.96
1/26/2000 $32,938.66 $2,182.53
1/27/2000 $32,683.43 $2,196.63
1/28/2000 $31,346.13 $2,283.29
1/31/2000 $32,473.31 $2,188.57
2/1/2000 $33,671.53 $2,116.02
2/2/2000 $33,877.83 $2,107.96
2/3/2000 $35,030.30 $2,037.43
2/4/2000 $35,241.42 $2,025.34
2/7/2000 $35,777.81 $2,001.15
2/8/2000 $36,956.11 $1,932.63
2/9/2000 $36,097.26 $1,983.02
2/10/2000 $37,202.79 $1,924.57
2/11/2000 $36,101.17 $1,985.03
2/14/2000 $36,257.99 $1,976.97
2/15/2000 $36,357.14 $1,970.92
2/16/2000 $36,365.69 $1,983.02
2/17/2000 $37,524.61 $1,928.60
2/18/2000 $36,072.61 $2,001.15
2/22/2000 $36,103.36 $2,007.20
2/23/2000 $37,931.30 $1,904.42
2/24/2000 $38,685.90 $1,874.19
2/25/2000 $38,008.52 $1,908.45
2/28/2000 $37,858.89 $1,920.54
2/29/2000 $38,812.25 $1,868.15
3/1/2000 $39,194.92 $1,845.98
3/2/2000 $38,514.99 $1,876.21
3/3/2000 $40,412.51 $1,783.50
3/6/2000 $40,542.68 $1,795.60
3/7/2000 $39,939.16 $1,827.84
3/8/2000 $40,438.07 $1,805.67
3/9/2000 $41,716.79 $1,757.31
3/10/2000 $41,724.98 $1,749.25
3/13/2000 $40,266.34 $1,805.67
3/14/2000 $38,448.86 $1,874.19
3/15/2000 $37,566.73 $1,892.33
3/16/2000 $39,598.05 $1,795.60
3/17/2000 $40,390.50 $1,759.32
3/20/2000 $38,759.58 $1,831.87
3/21/2000 $40,471.27 $1,749.25
3/22/2000 $41,812.76 $1,686.77
3/23/2000 $42,393.18 $1,660.57
3/24/2000 $42,675.06 $1,650.50
3/27/2000 $42,794.40 $1,644.45
3/28/2000 $41,690.69 $1,686.77
3/29/2000 $40,149.18 $1,751.26
3/30/2000 $38,659.89 $1,813.73
3/31/2000 $40,002.92 $1,753.28
4/3/2000 $37,084.73 $1,880.24
4/4/2000 $36,694.96 $1,900.39
4/5/2000 $36,659.40 $1,902.40
4/6/2000 $37,173.05 $1,872.18
4/7/2000 $39,035.92 $1,779.47
4/10/2000 $36,368.32 $1,904.42
4/11/2000 $35,558.32 $1,944.73
4/12/2000 $33,051.64 $2,075.72
4/13/2000 $32,325.59 $2,128.11
4/14/2000 $29,159.17 $2,341.73
4/17/2000 $32,104.01 $2,097.89
4/18/2000 $33,799.15 $2,003.17
4/19/2000 $32,591.74 $2,073.70
4/20/2000 $31,884.25 $2,120.05
4/24/2000 $30,503.84 $2,204.69
4/25/2000 $32,941.85 $2,029.37
4/26/2000 $31,888.07 $2,093.85
4/27/2000 $33,587.76 $1,985.03
4/28/2000 $34,320.99 $1,938.68
5/1/2000 $34,836.37 $1,908.45
5/2/2000 $32,994.15 $2,009.21
5/3/2000 $32,401.54 $2,047.50
5/4/2000 $32,479.49 $2,041.46
5/5/2000 $33,549.46 $1,972.94
5/8/2000 $32,032.61 $2,061.61
5/9/2000 $31,332.58 $2,109.98
5/10/2000 $29,514.19 $2,232.91
5/11/2000 $30,758.89 $2,140.21
5/12/2000 $30,983.38 $2,122.07
5/15/2000 $31,946.29 $2,055.56
5/16/2000 $33,172.25 $1,974.95
5/17/2000 $32,295.48 $2,027.35
5/18/2000 $31,166.21 $2,097.89
5/19/2000 $29,658.90 $2,202.68
5/22/2000 $29,695.93 $2,196.63
5/23/2000 $27,501.14 $2,361.88
5/24/2000 $28,928.22 $2,238.95
5/25/2000 $28,191.17 $2,293.37
5/26/2000 $28,210.82 $2,293.37
5/30/2000 $31,054.15 $2,061.61
5/31/2000 $30,235.96 $2,116.02
6/1/2000 $32,008.77 $1,995.11
6/2/2000 $34,161.72 $1,860.08
6/5/2000 $33,931.04 $1,872.18
6/6/2000 $33,167.06 $1,916.51
6/7/2000 $33,982.89 $1,872.18
6/8/2000 $33,721.83 $1,884.27
6/9/2000 $34,203.47 $1,856.05
6/12/2000 $33,095.21 $1,914.50
6/13/2000 $34,253.95 $1,843.96
6/14/2000 $33,450.59 $1,888.30
6/15/2000 $34,128.42 $1,852.02
6/16/2000 $34,449.97 $1,831.87
6/19/2000 $35,781.08 $1,761.34
6/20/2000 $35,782.27 $1,763.35
6/21/2000 $36,111.27 $1,745.21
6/22/2000 $34,602.33 $1,819.78
6/23/2000 $33,521.63 $1,876.21
6/26/2000 $34,305.25 $1,831.87
6/27/2000 $33,646.24 $1,864.12
6/28/2000 $34,301.70 $1,831.87
6/29/2000 $33,344.53 $1,880.24
6/30/2000 $34,235.58 $1,831.87
7/3/2000 $34,608.42 $1,811.72
7/5/2000 $33,198.72 $1,888.30
7/6/2000 $34,505.64 $1,815.75
7/7/2000 $34,940.34 $1,793.58
7/10/2000 $34,312.07 $1,829.86
7/11/2000 $34,060.39 $1,845.98
7/12/2000 $35,484.73 $1,771.41
7/13/2000 $35,990.02 $1,749.25
7/14/2000 $36,758.45 $1,706.92
7/17/2000 $36,947.01 $1,700.88
7/18/2000 $36,029.04 $1,743.20
7/19/2000 $34,964.99 $1,791.57
7/20/2000 $36,342.85 $1,721.03
7/21/2000 $35,554.14 $1,763.35
7/24/2000 $34,479.62 $1,815.75
7/25/2000 $35,159.73 $1,781.49
7/26/2000 $34,731.22 $1,803.66
7/27/2000 $33,488.25 $1,866.13
7/28/2000 $31,629.74 $1,970.92
7/31/2000 $32,830.78 $1,896.36
8/1/2000 $32,028.51 $1,938.68
8/2/2000 $31,748.26 $1,958.83
8/3/2000 $32,959.49 $1,888.30
8/4/2000 $32,915.20 $1,894.34
8/7/2000 $33,749.85 $1,847.99
8/8/2000 $33,531.36 $1,856.05
8/9/2000 $33,592.03 $1,856.05
8/10/2000 $32,701.98 $1,900.39
8/11/2000 $33,151.51 $1,880.24
8/14/2000 $33,833.71 $1,839.93
8/15/2000 $33,861.09 $1,837.92
8/16/2000 $33,848.63 $1,837.92
8/17/2000 $34,843.19 $1,787.54
8/18/2000 $34,633.25 $1,797.61
8/21/2000 $34,816.18 $1,787.54
8/22/2000 $34,818.63 $1,789.55
8/23/2000 $35,446.53 $1,757.31
8/24/2000 $35,925.44 $1,735.14
8/25/2000 $35,758.80 $1,743.20
8/28/2000 $35,967.92 $1,733.12
8/29/2000 $35,947.00 $1,733.12
8/30/2000 $36,099.72 $1,725.06
8/31/2000 $37,089.91 $1,674.68
</TABLE>
<TABLE>
<CAPTION>
SINCE
1 YEAR INCEPTION(2)
------ ------------
<S> <C> <C>
OTC/SHORT FUND (50.96%) (46.24%)
NASDAQ 100 INDEX(1) 70.12% 57.65%
</TABLE>
The OTC/Short Fund is designed to provide daily investment returns that
correlate inversely to the performance of the Nasdaq 100 Index (NDX). To achieve
its objective, the Fund holds short positions in the stocks that comprise the
NDX and, from time to time, short positions in Nasdaq 100 Index futures
contracts. During the Funds' fiscal year, the NDX rose 70.12% in value, while
the Fund declined (50.96%).
(1) RETURN DOES NOT INCLUDE CONTINUOUS REINVESTMENT OF DIVIDENDS.
(2) AVERAGE ANNUAL RATE OF RETURN.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
6
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP PLUS FUND
--------------------------------------------------------------------------------
INVESTOR CLASS
FEBRUARY 22, 1999 - AUGUST 31, 2000
[GRAPH]
<TABLE>
<CAPTION>
SMALL CAP PLUS FUND RUSSELL 2000 INDEX (1)
<S> <C> <C>
2/22/99 $10,000.00 $10,000.00
2/23/99 $10,170.00 $10,140.71
2/24/99 $10,220.00 $10,171.04
2/25/99 $10,030.00 $10,075.45
2/26/99 $9,960.00 $10,009.94
2/27/99 $9,880.00 $9,998.98
3/01/99 $10,000.00 $10,053.28
3/02/99 $10,010.00 $10,054.30
3/03/99 $9,950.00 $9,991.08
3/04/99 $10,070.00 $10,043.84
3/05/99 $10,170.00 $10,145.55
3/08/99 $10,250.00 $10,197.81
3/09/99 $10,110.00 $10,175.89
3/10/99 $10,210.00 $10,224.83
3/11/99 $10,200.00 $10,223.81
3/12/99 $10,060.00 $10,154.98
3/15/99 $10,140.00 $10,217.69
3/16/99 $10,090.00 $10,175.12
3/17/99 $10,120.00 $10,156.26
3/18/99 $10,160.00 $10,184.81
3/19/99 $9,910.00 $10,109.10
3/22/99 $9,810.00 $10,022.94
3/23/99 $9,660.00 $9,772.37
3/24/99 $9,760.00 $9,798.62
3/25/99 $10,110.00 $10,017.59
3/26/99 $10,160.00 $10,041.30
3/29/99 $10,360.00 $10,190.16
3/30/99 $10,310.00 $10,165.18
3/31/99 $10,170.00 $10,135.87
4/01/99 $10,290.00 $10,164.16
4/05/99 $10,410.00 $10,254.65
4/06/99 $10,360.00 $10,223.81
4/07/99 $10,160.00 $10,139.43
4/08/99 $10,330.00 $10,193.48
4/09/99 $10,570.00 $10,345.65
4/12/99 $10,830.00 $10,510.32
4/13/99 $10,980.00 $10,635.74
4/14/99 $10,970.00 $10,639.56
4/15/99 $10,990.00 $10,649.25
4/16/99 $11,040.00 $10,746.37
4/19/99 $10,720.00 $10,513.38
4/20/99 $10,810.00 $10,587.31
4/21/99 $11,250.00 $10,873.57
4/22/99 $11,270.00 $10,931.69
4/23/99 $11,290.00 $11,005.10
4/26/99 $11,510.00 $11,087.69
4/27/99 $11,500.00 $11,092.53
4/28/99 $11,430.00 $11,050.98
4/29/99 $11,310.00 $11,033.65
4/30/99 $11,290.00 $11,032.63
5/03/99 $11,470.00 $11,044.61
5/04/99 $11,300.00 $11,027.02
5/05/99 $11,390.00 $11,069.84
5/06/99 $11,340.00 $11,047.16
5/07/99 $11,500.00 $11,116.75
5/10/99 $11,750.00 $11,263.06
5/11/99 $11,870.00 $11,389.50
5/12/99 $11,910.00 $11,451.95
5/13/99 $11,960.00 $11,492.23
5/14/99 $11,590.00 $11,295.69
5/17/99 $11,640.00 $11,250.32
5/18/99 $11,710.00 $11,278.36
5/19/99 $11,870.00 $11,372.42
5/20/99 $11,910.00 $11,420.34
5/21/99 $11,960.00 $11,448.89
5/24/99 $11,540.00 $11,225.85
5/25/99 $11,380.00 $11,074.43
5/26/99 $11,390.00 $11,098.90
5/27/99 $11,380.00 $11,035.43
5/28/99 $11,570.00 $11,182.26
6/01/99 $11,560.00 $11,151.16
6/02/99 $11,420.00 $11,132.81
6/03/99 $11,400.00 $11,113.43
6/04/99 $11,620.00 $11,275.30
6/07/99 $11,820.00 $11,385.42
6/08/99 $11,640.00 $11,311.75
6/09/99 $11,750.00 $11,348.20
6/10/99 $11,620.00 $11,273.77
6/11/99 $11,440.00 $11,165.18
6/14/99 $11,270.00 $11,000.00
6/15/99 $11,340.00 $11,063.22
6/16/99 $11,590.00 $11,246.50
6/17/99 $11,620.00 $11,302.07
6/18/99 $11,730.00 $11,344.63
6/21/99 $11,890.00 $11,456.54
6/22/99 $11,840.00 $11,402.75
6/23/99 $11,720.00 $11,395.36
6/24/99 $11,650.00 $11,296.46
6/25/99 $11,640.00 $11,295.18
6/28/99 $11,870.00 $11,435.38
6/29/99 $11,990.00 $11,574.82
6/30/99 $12,130.00 $11,666.58
7/01/99 $12,030.00 $11,583.48
7/02/99 $12,120.00 $11,636.76
7/06/99 $12,110.00 $11,637.78
7/07/99 $11,880.00 $11,539.38
7/08/99 $11,960.00 $11,591.89
7/09/99 $12,100.00 $11,674.23
7/12/99 $12,110.00 $11,707.88
7/13/99 $12,050.00 $11,677.54
7/14/99 $12,260.00 $11,762.94
7/15/99 $12,380.00 $11,873.57
7/16/99 $12,330.00 $11,859.80
7/19/99 $12,190.00 $11,760.64
7/20/99 $11,880.00 $11,561.31
7/21/99 $11,930.00 $11,588.84
7/22/99 $11,800.00 $11,508.79
7/23/99 $11,690.00 $11,429.52
7/26/99 $11,530.00 $11,289.06
7/27/99 $11,660.00 $11,381.09
7/28/99 $11,710.00 $11,384.40
7/29/99 $11,480.00 $11,256.18
7/30/99 $11,570.00 $11,337.50
8/02/99 $11,540.00 $11,282.95
8/03/99 $11,330.00 $11,121.08
8/04/99 $11,110.00 $10,953.35
8/05/99 $11,190.00 $10,954.63
8/06/99 $11,100.00 $10,911.04
8/09/99 $11,000.00 $10,856.23
8/10/99 $10,890.00 $10,777.98
8/11/99 $11,070.00 $10,914.86
8/12/99 $11,110.00 $10,930.92
8/13/99 $11,250.00 $11,064.24
8/16/99 $11,260.00 $11,058.37
8/17/99 $11,380.00 $11,113.94
8/18/99 $11,210.00 $11,040.02
8/19/99 $11,220.00 $11,031.61
8/20/99 $11,360.00 $11,072.65
8/23/99 $11,430.00 $11,145.81
8/24/99 $11,370.00 $11,142.49
8/25/99 $11,440.00 $11,161.36
8/26/99 $11,340.00 $11,114.45
8/27/99 $11,210.00 $11,023.45
8/30/99 $11,030.00 $10,893.70
8/31/1999 $11,100.00 $10,905.68
9/1/1999 $11,220.00 $10,986.23
9/2/1999 $11,030.00 $10,895.23
9/3/1999 $11,400.00 $11,113.17
9/7/1999 $11,450.00 $11,171.04
9/8/1999 $11,320.00 $11,111.39
9/9/1999 $11,410.00 $11,159.06
9/10/1999 $11,570.00 $11,246.24
9/13/1999 $11,460.00 $11,206.98
9/14/1999 $11,460.00 $11,171.04
9/15/1999 $11,320.00 $11,122.35
9/16/1999 $11,190.00 $10,967.37
9/17/1999 $11,390.00 $11,074.43
9/20/1999 $11,250.00 $11,042.56
9/21/1999 $11,110.00 $10,871.78
9/22/1999 $11,140.00 $10,898.03
9/23/1999 $10,890.00 $10,711.44
9/24/1999 $10,820.00 $10,631.91
9/27/1999 $10,970.00 $10,753.50
9/28/1999 $10,850.00 $10,667.60
9/29/1999 $10,920.00 $10,744.83
9/30/1999 $11,120.00 $10,892.17
10/1/1999 $10,970.00 $10,796.07
10/4/1999 $11,220.00 $10,874.58
10/5/1999 $11,150.00 $10,859.29
10/6/1999 $11,250.00 $10,954.88
10/7/1999 $11,170.00 $10,912.82
10/8/1999 $11,230.00 $10,902.62
10/11/1999 $11,340.00 $10,965.84
10/12/1999 $11,120.00 $10,825.38
10/13/1999 $10,850.00 $10,688.75
10/14/1999 $10,880.00 $10,688.50
10/15/1999 $10,770.00 $10,570.99
10/18/1999 $10,570.00 $10,423.14
10/19/1999 $10,620.00 $10,474.89
10/20/1999 $10,680.00 $10,551.61
10/21/1999 $10,720.00 $10,560.03
10/22/1999 $10,880.00 $10,672.70
10/25/1999 $10,830.00 $10,648.99
10/26/1999 $10,780.00 $10,598.77
10/27/1999 $10,830.00 $10,623.75
10/28/1999 $11,010.00 $10,777.72
10/29/1999 $11,190.00 $10,926.33
11/1/1999 $11,280.00 $11,007.39
11/2/1999 $11,300.00 $11,021.92
11/3/1999 $11,500.00 $11,176.65
11/4/1999 $11,540.00 $11,213.35
11/5/1999 $11,680.00 $11,277.33
11/8/1999 $11,750.00 $11,345.14
11/9/1999 $11,740.00 $11,375.98
11/10/1999 $11,770.00 $11,438.18
11/11/1999 $11,720.00 $11,406.83
11/12/1999 $11,900.00 $11,462.91
11/15/1999 $11,980.00 $11,546.52
11/16/1999 $12,170.00 $11,646.18
11/17/1999 $12,080.00 $11,651.03
11/18/1999 $12,260.00 $11,777.72
11/19/1999 $12,220.00 $11,758.09
11/22/1999 $12,240.00 $11,745.34
11/23/1999 $11,950.00 $11,584.24
11/24/1999 $12,070.00 $11,621.97
11/26/1999 $12,100.00 $11,698.70
11/29/1999 $12,050.00 $11,647.97
11/30/1999 $11,900.00 $11,574.81
12/1/1999 $11,940.00 $11,564.36
12/2/1999 $12,170.00 $11,736.93
12/3/1999 $12,380.00 $11,842.46
12/6/1999 $12,330.00 $11,872.29
12/7/1999 $12,370.00 $11,871.01
12/8/1999 $12,420.00 $11,951.05
12/9/1999 $12,300.00 $11,850.62
12/10/1999 $12,380.00 $11,896.76
12/13/1999 $12,500.00 $11,990.31
12/14/1999 $12,210.00 $11,795.81
12/15/1999 $12,130.00 $11,759.36
12/16/1999 $12,316.00 $11,859.80
12/17/1999 $12,356.41 $11,884.01
12/20/1999 $12,336.21 $11,908.99
12/21/1999 $12,639.31 $12,128.21
12/22/1999 $12,730.24 $12,183.02
12/23/1999 $12,861.58 $12,297.47
12/27/1999 $12,922.20 $12,349.22
12/28/1999 $13,073.75 $12,451.69
12/29/1999 $13,356.65 $12,669.13
12/30/1999 $13,296.03 $12,658.42
12/31/1999 $13,518.30 $12,866.42
1/3/2000 $13,296.03 $12,654.09
1/4/2000 $12,659.51 $12,194.23
1/5/2000 $12,639.31 $12,205.70
1/6/2000 $12,518.07 $12,116.74
1/7/2000 $12,952.51 $12,447.36
1/10/2000 $13,336.44 $12,793.52
1/11/2000 $13,013.13 $12,556.97
1/12/2000 $12,922.20 $12,491.46
1/13/2000 $13,285.92 $12,775.68
1/14/2000 $13,538.51 $12,938.05
1/18/2000 $13,700.16 $13,088.45
1/19/2000 $13,932.54 $13,255.67
1/20/2000 $14,215.43 $13,440.73
1/21/2000 $14,447.81 $13,610.50
1/24/2000 $13,983.05 $13,330.35
1/25/2000 $13,952.74 $13,295.69
1/26/2000 $13,922.43 $13,281.67
1/27/2000 $13,791.09 $13,179.19
1/28/2000 $13,336.44 $12,863.11
1/31/2000 $13,033.34 $12,649.24
2/1/2000 $13,356.65 $12,840.93
2/2/2000 $13,528.40 $12,997.45
2/3/2000 $13,922.43 $13,296.71
2/4/2000 $14,063.88 $13,395.87
2/7/2000 $14,225.54 $13,570.99
2/8/2000 $14,407.40 $13,700.99
2/9/2000 $14,306.36 $13,663.01
2/10/2000 $14,528.64 $13,821.30
2/11/2000 $14,316.47 $13,691.05
2/14/2000 $14,397.29 $13,763.44
2/15/2000 $14,407.40 $13,771.09
2/16/2000 $14,659.98 $13,962.78
2/17/2000 $15,003.49 $14,234.51
2/18/2000 $14,498.33 $13,909.76
2/22/2000 $14,366.98 $13,789.19
2/23/2000 $14,710.50 $14,017.58
2/24/2000 $14,831.74 $14,122.86
2/25/2000 $14,831.74 $14,191.68
2/28/2000 $14,882.25 $14,215.65
2/29/2000 $15,528.87 $14,726.22
3/1/2000 $15,862.28 $14,997.44
3/2/2000 $15,680.42 $14,887.58
3/3/2000 $16,165.38 $15,240.37
3/6/2000 $16,296.73 $15,336.22
3/7/2000 $16,074.45 $15,178.94
3/8/2000 $16,064.35 $15,158.80
3/9/2000 $16,519.00 $15,448.63
3/10/2000 $16,387.66 $15,391.53
3/13/2000 $15,862.28 $15,043.07
3/14/2000 $15,276.29 $14,605.91
3/15/2000 $14,851.94 $14,245.98
3/16/2000 $15,538.97 $14,637.77
3/17/2000 $15,437.94 $14,651.28
3/20/2000 $14,417.50 $13,999.48
3/21/2000 $14,639.77 $14,091.00
3/22/2000 $15,225.77 $14,560.02
3/23/2000 $15,286.39 $14,626.30
3/24/2000 $15,266.18 $14,631.91
3/27/2000 $15,235.87 $14,622.73
3/28/2000 $14,670.08 $14,250.31
3/29/2000 $14,205.33 $13,841.44
3/30/2000 $13,882.02 $13,550.08
3/31/2000 $14,144.71 $13,741.77
4/3/2000 $13,386.96 $13,154.21
4/4/2000 $13,174.79 $12,901.35
4/5/2000 $13,629.44 $13,205.19
4/6/2000 $14,144.71 $13,573.79
4/7/2000 $14,427.60 $13,841.19
4/10/2000 $13,548.61 $13,221.00
4/11/2000 $13,477.89 $13,003.56
4/12/2000 $12,881.79 $12,578.12
4/13/2000 $12,780.75 $12,470.55
4/14/2000 $11,628.97 $11,565.63
4/17/2000 $11,871.45 $11,706.85
4/18/2000 $12,720.13 $12,390.77
4/19/2000 $12,578.69 $12,394.34
4/20/2000 $12,396.83 $12,282.43
4/24/2000 $11,901.76 $11,943.41
4/25/2000 $12,750.44 $12,465.71
4/26/2000 $12,336.21 $12,343.61
4/27/2000 $12,740.34 $12,607.18
4/28/2000 $13,093.96 $12,904.66
5/1/2000 $13,487.99 $13,227.88
5/2/2000 $12,962.62 $12,881.72
5/3/2000 $12,619.10 $12,632.16
5/4/2000 $12,841.37 $12,794.03
5/5/2000 $13,205.10 $13,072.64
5/8/2000 $12,750.44 $12,747.38
5/9/2000 $12,447.34 $12,512.36
5/10/2000 $11,921.97 $12,089.72
5/11/2000 $12,467.55 $12,474.89
5/12/2000 $12,477.65 $12,514.40
5/15/2000 $12,679.72 $12,689.52
5/16/2000 $12,942.41 $12,897.78
5/17/2000 $12,639.31 $12,736.68
5/18/2000 $12,346.31 $12,514.65
5/19/2000 $11,942.18 $12,227.88
5/22/2000 $11,719.90 $12,023.19
5/23/2000 $11,295.56 $11,700.48
5/24/2000 $11,426.90 $11,770.07
5/25/2000 $11,245.04 $11,628.09
5/26/2000 $11,234.94 $11,658.67
5/30/2000 $11,810.83 $12,151.41
5/31/2000 $11,780.52 $12,138.15
6/1/2000 $12,285.69 $12,553.40
6/2/2000 $12,891.89 $13,077.49
6/5/2000 $12,871.68 $13,084.37
6/6/2000 $12,780.75 $13,042.31
6/7/2000 $12,962.62 $13,166.96
6/8/2000 $12,871.68 $13,115.98
6/9/2000 $13,124.27 $13,333.16
6/12/2000 $12,629.20 $12,962.27
6/13/2000 $12,790.86 $13,095.84
6/14/2000 $12,639.31 $12,991.84
6/15/2000 $12,699.93 $13,057.60
6/16/2000 $12,679.72 $13,095.58
6/19/2000 $12,952.51 $13,326.28
6/20/2000 $13,023.24 $13,400.20
6/21/2000 $13,043.44 $13,449.14
6/22/2000 $12,568.58 $13,127.96
6/23/2000 $12,427.14 $13,010.70
6/26/2000 $12,619.10 $13,162.37
6/27/2000 $12,336.21 $12,951.31
6/28/2000 $12,770.65 $13,280.39
6/29/2000 $12,467.55 $13,066.02
6/30/2000 $12,457.45 $13,184.55
7/3/2000 $12,609.00 $13,358.14
7/5/2000 $12,376.62 $13,210.55
7/6/2000 $12,548.38 $13,339.79
7/7/2000 $12,689.82 $13,464.69
7/10/2000 $12,730.24 $13,531.22
7/11/2000 $12,699.93 $13,503.44
7/12/2000 $13,013.13 $13,771.34
7/13/2000 $13,073.75 $13,835.32
7/14/2000 $13,053.55 $13,832.01
7/17/2000 $13,104.06 $13,897.01
7/18/2000 $12,790.86 $13,670.14
7/19/2000 $12,578.69 $13,455.51
7/20/2000 $12,831.27 $13,631.14
7/21/2000 $12,366.52 $13,323.98
7/24/2000 $12,144.24 $13,108.59
7/25/2000 $12,255.38 $13,110.62
7/26/2000 $12,164.45 $13,097.37
7/27/2000 $11,649.18 $12,786.38
7/28/2000 $11,356.18 $12,496.04
7/31/2000 $11,760.32 $12,761.66
8/1/2000 $11,598.66 $12,688.50
8/2/2000 $11,679.49 $12,750.95
8/3/2000 $11,669.38 $12,731.32
8/4/2000 $11,790.63 $12,837.87
8/7/2000 $11,982.59 $12,996.94
8/8/2000 $11,911.87 $12,967.62
8/9/2000 $11,851.25 $12,936.52
8/10/2000 $11,730.00 $12,787.40
8/11/2000 $12,033.11 $13,007.13
8/14/2000 $12,124.04 $13,114.45
8/15/2000 $11,972.49 $12,998.47
8/16/2000 $12,063.42 $13,070.09
8/17/2000 $12,154.35 $13,164.92
8/18/2000 $12,113.93 $13,140.70
8/21/2000 $12,134.14 $13,164.66
8/22/2000 $12,184.66 $13,190.41
8/23/2000 $12,194.76 $13,201.12
8/24/2000 $12,366.52 $13,339.28
8/25/2000 $12,406.93 $13,385.41
8/28/2000 $12,406.93 $13,420.34
8/29/2000 $12,558.48 $13,500.63
8/30/2000 $12,609.00 $13,569.46
8/31/2000 $12,710.03 $13,711.18
</TABLE>
<TABLE>
<CAPTION>
SINCE
1 YEAR INCEPTION(2)
------ ------------
<S> <C> <C>
SMALL CAP PLUS FUND 14.50% 17.02%
RUSSEL 2000 INDEX(1) 25.73% 22.98%
</TABLE>
The Small Cap Plus Fund seeks to provide investment daily returns that
correspond to 125% of the return of the daily return of the Russell 2000
("RTY"). The Fund does not purchase all 2000 issues in the RTY, but rather holds
a portfolio including long positions in an optimized basket of equities designed
to track the performance of the RTY, RTY futures contracts and options on the
RTY. In an attempt to improve daily tracking, the Fund's advisor analyzed
several alternative optimized stock baskets designed to track the RTY. Based on
this analysis, some of the optimized stock baskets were included in the
portfolio during portions of the fiscal year. For the first quarter of the
fiscal year, with the RTY gaining in value, the Fund provided a return equal to
119% of the return of the RTY. For the second quarter of the fiscal year, with
the RTY again gaining in value, the Fund provided a return equal to 108% of the
return of the RTY. In the third quarter of the fiscal year, the market
deteriorated significantly and the Fund, as a consequence of negative
compounding and high portfolio turnover caused by shareholder activity, declined
by 142% of the decline of the RTY. Finally, in the fourth quarter of the fiscal
year, as the Russell recovered, the Fund provided only 61% of the return of the
RTY. As a consequence, for the year, the Fund gained 14.50%, while the RTY
gained 25.73%.
(1) RETURN DOES NOT INCLUDE CONTINUOUS REINVESTMENT OF DIVIDENDS.
(2) AVERAGE ANNUAL RATE OF RETURN.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
7
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP/SHORT FUND
--------------------------------------------------------------------------------
INVESTOR CLASS
DECEMBER 21, 1999 - AUGUST 31, 2000
[GRAPH]
<TABLE>
<CAPTION>
SMALL CAP/SHORT FUND RUSSELL 2000 INDEX (1)
<S> <C> <C>
12/21/1999 $10,000.00 $10,000.00
12/22/1999 $10,002.00 $10,045.19
12/23/1999 $10,006.00 $10,139.56
12/27/1999 $10,008.00 $10,182.22
12/28/1999 $10,008.00 $10,266.71
12/29/1999 $10,008.00 $10,446.00
12/30/1999 $10,008.00 $10,437.17
12/31/1999 $10,008.00 $10,608.67
1/3/2000 $10,008.00 $10,433.59
1/4/2000 $10,012.00 $10,054.44
1/5/2000 $10,012.00 $10,063.89
1/6/2000 $10,014.00 $9,990.54
1/7/2000 $10,016.00 $10,263.14
1/10/2000 $10,018.00 $10,548.56
1/11/2000 $10,018.00 $10,353.52
1/12/2000 $10,020.00 $10,299.50
1/13/2000 $10,020.00 $10,533.85
1/14/2000 $10,024.00 $10,667.73
1/18/2000 $10,026.00 $10,791.74
1/19/2000 $10,026.00 $10,929.61
1/20/2000 $10,028.00 $11,082.20
1/21/2000 $10,032.00 $11,222.18
1/24/2000 $10,034.00 $10,991.19
1/25/2000 $10,036.00 $10,962.61
1/26/2000 $10,072.00 $10,951.05
1/27/2000 $10,100.00 $10,866.56
1/28/2000 $10,292.00 $10,605.94
1/31/2000 $10,518.00 $10,429.60
2/1/2000 $10,238.00 $10,587.65
2/2/2000 $10,084.00 $10,716.70
2/3/2000 $10,084.00 $10,963.45
2/4/2000 $10,084.00 $11,045.21
2/7/2000 $10,084.00 $11,189.60
2/8/2000 $10,084.00 $11,296.79
2/9/2000 $10,084.00 $11,265.47
2/10/2000 $10,084.00 $11,395.99
2/11/2000 $10,084.00 $11,288.59
2/14/2000 $9,986.00 $11,348.28
2/15/2000 $9,940.00 $11,354.59
2/16/2000 $9,848.00 $11,512.64
2/17/2000 $9,790.00 $11,736.69
2/18/2000 $9,790.00 $11,468.93
2/22/2000 $9,864.00 $11,369.51
2/23/2000 $9,622.00 $11,557.83
2/24/2000 $9,622.00 $11,644.63
2/25/2000 $9,624.00 $11,701.38
2/28/2000 $9,632.00 $11,721.14
2/29/2000 $9,296.00 $12,142.12
3/1/2000 $9,296.00 $12,365.75
3/2/2000 $9,296.00 $12,275.16
3/3/2000 $9,296.00 $12,566.05
3/6/2000 $9,302.00 $12,645.07
3/7/2000 $9,306.00 $12,515.40
3/8/2000 $9,306.00 $12,498.79
3/9/2000 $9,066.00 $12,737.76
3/10/2000 $9,200.00 $12,690.68
3/13/2000 $9,200.00 $12,403.37
3/14/2000 $9,480.00 $12,042.92
3/15/2000 $9,646.00 $11,746.15
3/16/2000 $9,282.00 $12,069.19
3/17/2000 $9,288.00 $12,080.33
3/20/2000 $9,290.00 $11,542.91
3/21/2000 $9,082.00 $11,618.36
3/22/2000 $8,810.00 $12,005.09
3/23/2000 $8,774.00 $12,059.73
3/24/2000 $8,800.00 $12,064.36
3/27/2000 $8,796.00 $12,056.79
3/28/2000 $9,056.00 $11,749.72
3/29/2000 $9,316.00 $11,412.60
3/30/2000 $9,514.00 $11,172.37
3/31/2000 $9,366.00 $11,330.42
4/3/2000 $9,790.00 $10,845.96
4/4/2000 $9,968.00 $10,637.47
4/5/2000 $9,576.00 $10,888.00
4/6/2000 $9,272.00 $11,191.91
4/7/2000 $9,142.00 $11,412.39
4/10/2000 $9,688.00 $10,901.03
4/11/2000 $9,750.00 $10,721.75
4/12/2000 $10,164.00 $10,370.96
4/13/2000 $10,130.00 $10,282.27
4/14/2000 $10,886.00 $9,536.14
4/17/2000 $10,734.00 $9,652.58
4/18/2000 $10,096.00 $10,216.48
4/19/2000 $10,214.00 $10,219.42
4/20/2000 $10,278.00 $10,127.16
4/24/2000 $10,528.00 $9,847.62
4/25/2000 $9,920.00 $10,278.27
4/26/2000 $10,172.00 $10,177.60
4/27/2000 $9,872.00 $10,394.92
4/28/2000 $9,720.00 $10,640.20
5/1/2000 $9,454.00 $10,906.70
5/2/2000 $9,810.00 $10,621.28
5/3/2000 $9,972.00 $10,415.52
5/4/2000 $9,752.00 $10,548.98
5/5/2000 $9,532.00 $10,778.70
5/8/2000 $9,892.00 $10,510.52
5/9/2000 $10,030.00 $10,316.74
5/10/2000 $10,348.00 $9,968.26
5/11/2000 $9,914.00 $10,285.84
5/12/2000 $10,020.00 $10,318.42
5/15/2000 $9,840.00 $10,462.81
5/16/2000 $9,584.00 $10,634.52
5/17/2000 $9,744.00 $10,501.69
5/18/2000 $9,924.00 $10,318.63
5/19/2000 $10,154.00 $10,082.18
5/22/2000 $10,294.00 $9,913.41
5/23/2000 $10,624.00 $9,647.32
5/24/2000 $10,436.00 $9,704.70
5/25/2000 $10,632.00 $9,587.63
5/26/2000 $10,614.00 $9,612.85
5/30/2000 $10,102.00 $10,019.13
5/31/2000 $10,294.00 $10,008.20
6/1/2000 $9,928.00 $10,350.57
6/2/2000 $9,524.00 $10,782.70
6/5/2000 $9,498.00 $10,788.37
6/6/2000 $9,594.00 $10,753.69
6/7/2000 $9,504.00 $10,856.47
6/8/2000 $9,420.00 $10,814.43
6/9/2000 $9,204.00 $10,993.51
6/12/2000 $9,466.00 $10,687.70
6/13/2000 $9,270.00 $10,797.83
6/14/2000 $9,436.00 $10,712.08
6/15/2000 $9,282.00 $10,766.30
6/16/2000 $9,204.00 $10,797.62
6/19/2000 $9,040.00 $10,987.83
6/20/2000 $8,986.00 $11,048.78
6/21/2000 $8,962.00 $11,089.14
6/22/2000 $9,252.00 $10,824.31
6/23/2000 $9,336.00 $10,727.63
6/26/2000 $9,132.00 $10,852.69
6/27/2000 $9,374.00 $10,678.66
6/28/2000 $9,088.00 $10,950.00
6/29/2000 $9,088.00 $10,773.24
6/30/2000 $8,964.00 $10,870.97
7/3/2000 $8,946.00 $11,014.10
7/5/2000 $9,046.00 $10,892.41
7/6/2000 $8,908.00 $10,998.97
7/7/2000 $8,864.00 $11,101.96
7/10/2000 $8,786.00 $11,156.81
7/11/2000 $8,804.00 $11,133.90
7/12/2000 $8,674.00 $11,354.80
7/13/2000 $8,662.00 $11,407.55
7/14/2000 $8,680.00 $11,404.82
7/17/2000 $8,666.00 $11,458.42
7/18/2000 $8,790.00 $11,271.36
7/19/2000 $8,906.00 $11,094.39
7/20/2000 $8,742.00 $11,239.20
7/21/2000 $8,878.00 $10,985.94
7/24/2000 $9,030.00 $10,808.34
7/25/2000 $8,966.00 $10,810.02
7/26/2000 $8,994.00 $10,799.09
7/27/2000 $9,258.00 $10,542.68
7/28/2000 $9,438.00 $10,303.29
7/31/2000 $9,180.00 $10,522.29
8/1/2000 $9,292.00 $10,461.97
8/2/2000 $9,240.00 $10,513.46
8/3/2000 $9,252.00 $10,497.28
8/4/2000 $9,168.00 $10,585.13
8/7/2000 $9,184.00 $10,716.28
8/8/2000 $9,208.00 $10,692.11
8/9/2000 $9,254.00 $10,666.47
8/10/2000 $9,330.00 $10,543.52
8/11/2000 $8,936.00 $10,724.69
8/14/2000 $9,038.00 $10,813.17
8/15/2000 $9,104.00 $10,717.54
8/16/2000 $9,086.00 $10,776.60
8/17/2000 $9,016.00 $10,854.79
8/18/2000 $9,024.00 $10,834.82
8/21/2000 $9,020.00 $10,854.58
8/22/2000 $8,980.00 $10,875.81
8/23/2000 $8,998.00 $10,884.63
8/24/2000 $8,936.00 $10,998.55
8/25/2000 $8,926.00 $11,036.59
8/28/2000 $8,920.00 $11,065.39
8/29/2000 $8,812.00 $11,131.59
8/30/2000 $8,778.00 $11,188.34
8/31/2000 $8,674.00 $11,305.20
</TABLE>
<TABLE>
<CAPTION>
12/21/99-
8/31/00(2)
----------
<S> <C>
SMALL CAP/SHORT FUND (13.26%)
RUSSELL 2000 INDEX(1) 13.05%
</TABLE>
The Small Cap/Short Fund is designed to provide, on a daily basis, investment
returns that correlate inversely to the performance of the Russell 2000 Index
(RTY). To achieve its objective, the Fund holds short positions in RTY futures
contracts and options on the RTY. For the fiscal year, the RTY gained 13.05%
while the Fund declined (13.26%).
(1) RETURN DOES NOT INCLUDE CONTINUOUS REINVESTMENT OF DIVIDENDS.
(2) NOT ANNUALIZED.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
8
<PAGE>
--------------------------------------------------------------------------------
INTERNET PLUS FUND
--------------------------------------------------------------------------------
INVESTOR CLASS
DECEMBER 2, 1999 - AUGUST 31, 2000
[GRAPH]
<TABLE>
<CAPTION>
INTERNET PLUS FUND DJ INTERNET INDEX(1)
<S> <C> <C>
12/2/1999 $10,000.00 $10,000.00
12/3/1999 $10,950.00 $10,242.10
12/6/1999 $11,390.00 $10,601.27
12/7/1999 $11,920.00 $11,027.86
12/8/1999 $12,130.00 $11,238.09
12/9/1999 $12,520.00 $11,521.56
12/10/1999 $12,770.00 $11,693.48
12/13/1999 $13,080.00 $11,930.37
12/14/1999 $12,330.00 $11,354.54
12/15/1999 $12,110.00 $11,193.96
12/16/1999 $12,540.00 $11,593.27
12/17/1999 $12,590.00 $11,618.09
12/20/1999 $12,640.00 $11,730.56
12/21/1999 $13,740.00 $12,649.93
12/22/1999 $13,710.00 $12,658.82
12/23/1999 $13,370.00 $12,367.99
12/27/1999 $13,140.00 $12,165.73
12/28/1999 $13,120.00 $12,163.89
12/29/1999 $13,560.00 $12,475.87
12/30/1999 $13,330.00 $12,275.44
12/31/1999 $13,370.00 $12,312.83
1/3/2000 $14,630.00 $13,306.06
1/4/2000 $13,400.00 $12,395.27
1/5/2000 $12,920.00 $12,066.75
1/6/2000 $11,720.00 $11,162.70
1/7/2000 $12,780.00 $11,949.68
1/10/2000 $13,700.00 $12,637.37
1/11/2000 $12,670.00 $11,921.18
1/12/2000 $11,940.00 $11,278.23
1/13/2000 $12,800.00 $11,975.12
1/14/2000 $12,860.00 $12,004.23
1/18/2000 $13,280.00 $12,355.43
1/19/2000 $13,680.00 $12,666.48
1/20/2000 $13,860.00 $12,793.66
1/21/2000 $14,230.00 $13,162.64
1/24/2000 $13,340.00 $12,521.22
1/25/2000 $13,710.00 $12,798.87
1/26/2000 $13,330.00 $12,577.00
1/27/2000 $13,420.00 $12,662.19
1/28/2000 $12,430.00 $11,894.52
1/31/2000 $12,120.00 $11,592.35
2/1/2000 $12,550.00 $11,933.44
2/2/2000 $12,770.00 $12,084.83
2/3/2000 $13,550.00 $12,675.98
2/4/2000 $13,180.00 $12,377.19
2/7/2000 $13,320.00 $12,455.33
2/8/2000 $13,860.00 $12,862.62
2/9/2000 $13,580.00 $12,711.23
2/10/2000 $14,040.00 $13,117.28
2/11/2000 $13,450.00 $12,711.23
2/14/2000 $13,480.00 $12,770.07
2/15/2000 $13,550.00 $12,839.02
2/16/2000 $13,480.00 $12,847.29
2/17/2000 $13,680.00 $12,988.57
2/18/2000 $13,270.00 $12,711.53
2/22/2000 $13,000.00 $12,493.03
2/23/2000 $14,200.00 $13,383.59
2/24/2000 $14,590.00 $13,711.19
2/25/2000 $14,360.00 $13,541.42
2/28/2000 $13,990.00 $13,273.88
2/29/2000 $14,510.00 $13,685.45
3/1/2000 $14,880.00 $13,966.47
3/2/2000 $14,650.00 $13,901.20
3/3/2000 $15,600.00 $14,601.15
3/6/2000 $16,150.00 $15,080.44
3/7/2000 $15,660.00 $14,686.65
3/8/2000 $16,080.00 $14,990.35
3/9/2000 $16,930.00 $15,624.41
3/10/2000 $16,790.00 $15,532.47
3/13/2000 $16,120.00 $15,001.99
3/14/2000 $15,400.00 $14,436.58
3/15/2000 $14,340.00 $13,614.35
3/16/2000 $14,910.00 $14,033.59
3/17/2000 $15,310.00 $14,297.45
3/20/2000 $13,880.00 $13,280.32
3/21/2000 $14,510.00 $13,588.61
3/22/2000 $15,270.00 $14,190.49
3/23/2000 $15,010.00 $13,949.31
3/24/2000 $15,310.00 $14,168.12
3/27/2000 $15,200.00 $14,068.52
3/28/2000 $14,590.00 $13,613.44
3/29/2000 $13,090.00 $12,440.93
3/30/2000 $12,400.00 $11,890.23
3/31/2000 $12,320.00 $11,783.58
4/3/2000 $10,350.00 $10,184.18
4/4/2000 $10,320.00 $10,125.03
4/5/2000 $10,470.00 $10,266.62
4/6/2000 $11,270.00 $10,928.87
4/7/2000 $11,770.00 $11,501.33
4/10/2000 $10,360.00 $10,347.52
4/11/2000 $9,230.00 $9,617.54
4/12/2000 $8,110.00 $8,682.85
4/13/2000 $7,580.00 $8,211.82
4/14/2000 $6,470.00 $7,254.45
4/17/2000 $6,740.00 $7,524.75
4/18/2000 $7,900.00 $8,500.51
4/19/2000 $7,870.00 $8,611.44
4/20/2000 $7,570.00 $8,423.58
4/24/2000 $6,740.00 $7,637.22
4/25/2000 $7,490.00 $8,379.46
4/26/2000 $7,250.00 $8,181.79
4/27/2000 $7,880.00 $8,731.27
4/28/2000 $8,330.00 $9,190.65
5/1/2000 $8,490.00 $9,328.25
5/2/2000 $7,860.00 $8,746.90
5/3/2000 $7,770.00 $8,625.85
5/4/2000 $7,910.00 $8,760.07
5/5/2000 $8,040.00 $8,870.09
5/8/2000 $7,590.00 $8,459.13
5/9/2000 $7,340.00 $8,253.81
5/10/2000 $6,790.00 $7,760.41
5/11/2000 $6,940.00 $7,893.41
5/12/2000 $7,000.00 $7,945.21
5/15/2000 $7,390.00 $8,331.95
5/16/2000 $7,820.00 $8,735.86
5/17/2000 $7,560.00 $8,486.10
5/18/2000 $7,200.00 $8,167.69
5/19/2000 $6,690.00 $7,716.89
5/22/2000 $6,590.00 $7,597.38
5/23/2000 $5,910.00 $6,973.43
5/24/2000 $6,060.00 $7,085.90
5/25/2000 $5,750.00 $6,819.90
5/26/2000 $5,750.00 $6,843.49
5/30/2000 $6,520.00 $7,600.75
5/31/2000 $6,260.00 $7,364.78
6/1/2000 $6,870.00 $7,970.03
6/2/2000 $8,000.00 $9,054.27
6/5/2000 $8,000.00 $9,092.27
6/6/2000 $7,630.00 $8,716.25
6/7/2000 $8,140.00 $9,206.89
6/8/2000 $8,140.00 $9,226.50
6/9/2000 $8,190.00 $9,260.83
6/12/2000 $7,520.00 $8,650.06
6/13/2000 $7,640.00 $8,758.54
6/14/2000 $7,450.00 $8,571.60
6/15/2000 $7,500.00 $8,618.80
6/16/2000 $7,440.00 $8,563.33
6/19/2000 $7,720.00 $8,873.46
6/20/2000 $8,070.00 $9,184.52
6/21/2000 $8,100.00 $9,261.13
6/22/2000 $7,720.00 $8,950.38
6/23/2000 $7,190.00 $8,487.33
6/26/2000 $7,210.00 $8,553.22
6/27/2000 $7,240.00 $8,538.20
6/28/2000 $7,440.00 $8,771.41
6/29/2000 $7,300.00 $8,653.73
6/30/2000 $7,480.00 $8,830.56
7/3/2000 $7,590.00 $8,924.64
7/5/2000 $7,260.00 $8,627.07
7/6/2000 $7,430.00 $8,778.77
7/7/2000 $7,300.00 $8,669.98
7/10/2000 $7,080.00 $8,497.13
7/11/2000 $6,710.00 $8,164.02
7/12/2000 $7,530.00 $8,911.16
7/13/2000 $8,240.00 $9,688.33
7/14/2000 $8,480.00 $9,870.37
7/17/2000 $8,590.00 $9,935.03
7/18/2000 $8,300.00 $9,692.93
7/19/2000 $7,880.00 $9,276.15
7/20/2000 $8,470.00 $9,857.19
7/21/2000 $8,060.00 $9,473.81
7/24/2000 $7,550.00 $8,997.27
7/25/2000 $7,570.00 $8,995.43
7/26/2000 $7,390.00 $8,836.38
7/27/2000 $6,880.00 $8,334.71
7/28/2000 $6,470.00 $7,891.58
7/31/2000 $6,750.00 $8,152.06
8/1/2000 $6,430.00 $7,827.53
8/2/2000 $6,450.00 $7,853.57
8/3/2000 $6,800.00 $8,203.24
8/4/2000 $6,920.00 $8,295.79
8/7/2000 $7,330.00 $8,706.75
8/8/2000 $7,280.00 $8,673.35
8/9/2000 $7,080.00 $8,459.75
8/10/2000 $6,940.00 $8,371.18
8/11/2000 $6,880.00 $8,301.62
8/14/2000 $7,060.00 $8,453.00
8/15/2000 $7,090.00 $8,471.39
8/16/2000 $7,130.00 $8,521.34
8/17/2000 $7,380.00 $8,759.77
8/18/2000 $7,260.00 $8,631.36
8/21/2000 $7,280.00 $8,653.12
8/22/2000 $7,420.00 $8,781.83
8/23/2000 $7,700.00 $9,039.26
8/24/2000 $7,850.00 $9,172.87
8/25/2000 $7,850.00 $9,213.32
8/28/2000 $7,830.00 $9,199.23
8/29/2000 $7,870.00 $9,248.26
8/30/2000 $8,330.00 $9,719.29
8/31/2000 $8,450.00 $9,860.56
</TABLE>
<TABLE>
<CAPTION>
12/2/99-
8/31/00(2)
----------
<S> <C>
INTERNET PLUS FUND (15.50%)
DJ INTERNET INDEX(1) (1.39%)
</TABLE>
The Potomac Internet Plus Fund seeks daily investment returns that correspond to
125% of the Dow Jones Composite Internet Index (DJINet). To achieve this goal,
the Fund invests in the 40 stocks of the Index and attempts to leverage its
performance by holding option contracts on various internet indexes. During the
Fund's fiscal year, the DJINet experienced considerable volatility: the index
gained through mid-March, declined from mid-March through the end of May and
gained from June through the end of the fiscal year. On August 31st the Index
closed at 321, down (1.39%) for the nine-month period while the Fund declined
(15.50%). The relatively weak recovery in the DJINet and the under-performance
of the Fund's option contracts have prevented the Fund from fully recovering
from the earlier decline in the target index.
(1) RETURN DOES NOT INCLUDE CONTINUOUS REINVESTMENT OF DIVIDENDS.
(2) NOT ANNUALIZED.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
9
<PAGE>
--------------------------------------------------------------------------------
INTERNET/SHORT FUND
--------------------------------------------------------------------------------
INVESTOR CLASS
DECEMBER 21, 1999 - AUGUST 31, 2000
[GRAPH]
<TABLE>
<CAPTION>
INTERNET/SHORT FUND DJ INTERNET INDEX(1)
<S> <C> <C>
12/21/1999 $10,000.00 $10,000.00
12/22/1999 $10,000.00 $10,007.03
12/23/1999 $10,006.00 $9,777.12
12/27/1999 $10,008.00 $9,617.23
12/28/1999 $10,008.00 $9,615.78
12/29/1999 $10,008.00 $9,862.40
12/30/1999 $10,008.00 $9,703.96
12/31/1999 $10,008.00 $9,733.51
1/3/2000 $10,008.00 $10,518.68
1/4/2000 $10,012.00 $9,798.68
1/5/2000 $10,012.00 $9,538.98
1/6/2000 $10,014.00 $8,824.31
1/7/2000 $9,368.00 $9,446.44
1/10/2000 $8,830.00 $9,990.07
1/11/2000 $8,712.00 $9,423.91
1/12/2000 $9,130.00 $8,915.65
1/13/2000 $8,752.00 $9,466.54
1/14/2000 $8,756.00 $9,489.56
1/18/2000 $8,756.00 $9,767.19
1/19/2000 $8,756.00 $10,013.08
1/20/2000 $8,756.00 $10,113.62
1/21/2000 $8,760.00 $10,405.30
1/24/2000 $8,762.00 $9,898.25
1/25/2000 $8,762.00 $10,117.74
1/26/2000 $8,764.00 $9,942.34
1/27/2000 $8,572.00 $10,009.69
1/28/2000 $9,074.00 $9,402.83
1/31/2000 $8,966.00 $9,163.96
2/1/2000 $8,860.00 $9,433.60
2/2/2000 $8,588.00 $9,553.27
2/3/2000 $8,588.00 $10,020.59
2/4/2000 $8,590.00 $9,784.39
2/7/2000 $8,532.00 $9,846.17
2/8/2000 $8,148.00 $10,168.13
2/9/2000 $8,158.00 $10,048.45
2/10/2000 $8,158.00 $10,369.45
2/11/2000 $8,162.00 $10,048.45
2/14/2000 $8,210.00 $10,094.97
2/15/2000 $8,182.00 $10,149.47
2/16/2000 $8,528.00 $10,156.02
2/17/2000 $8,320.00 $10,267.70
2/18/2000 $8,716.00 $10,048.69
2/22/2000 $8,816.00 $9,875.96
2/23/2000 $7,920.00 $10,579.97
2/24/2000 $7,650.00 $10,838.95
2/25/2000 $7,808.00 $10,704.73
2/28/2000 $7,880.00 $10,493.24
2/29/2000 $7,878.00 $10,818.60
3/1/2000 $7,878.00 $11,040.75
3/2/2000 $7,880.00 $10,989.15
3/3/2000 $7,882.00 $11,542.47
3/6/2000 $7,578.00 $11,921.36
3/7/2000 $7,762.00 $11,610.06
3/8/2000 $7,512.00 $11,850.14
3/9/2000 $7,122.00 $12,351.37
3/10/2000 $7,286.00 $12,278.70
3/13/2000 $7,276.00 $11,859.34
3/14/2000 $7,400.00 $11,412.37
3/15/2000 $7,708.00 $10,762.39
3/16/2000 $7,300.00 $11,093.80
3/17/2000 $7,112.00 $11,302.39
3/20/2000 $7,352.00 $10,498.33
3/21/2000 $7,188.00 $10,742.04
3/22/2000 $6,928.00 $11,217.84
3/23/2000 $7,002.00 $11,027.18
3/24/2000 $6,860.00 $11,200.16
3/27/2000 $6,928.00 $11,121.42
3/28/2000 $7,156.00 $10,761.66
3/29/2000 $7,824.00 $9,834.78
3/30/2000 $8,246.00 $9,399.44
3/31/2000 $8,636.00 $9,315.13
4/3/2000 $10,060.00 $8,050.78
4/4/2000 $9,910.00 $8,004.02
4/5/2000 $9,418.00 $8,115.95
4/6/2000 $8,746.00 $8,639.47
4/7/2000 $8,286.00 $9,092.01
4/10/2000 $9,382.00 $8,179.90
4/11/2000 $10,074.00 $7,602.84
4/12/2000 $11,214.00 $6,863.95
4/13/2000 $12,100.00 $6,491.59
4/14/2000 $13,430.00 $5,734.77
4/17/2000 $13,040.00 $5,948.45
4/18/2000 $10,232.00 $6,719.80
4/19/2000 $10,312.00 $6,807.50
4/20/2000 $9,864.00 $6,659.00
4/24/2000 $10,884.00 $6,037.36
4/25/2000 $9,852.00 $6,624.11
4/26/2000 $10,156.00 $6,467.85
4/27/2000 $9,352.00 $6,902.22
4/28/2000 $8,910.00 $7,265.37
5/1/2000 $8,494.00 $7,374.15
5/2/2000 $9,132.00 $6,914.58
5/3/2000 $9,160.00 $6,818.89
5/4/2000 $9,012.00 $6,925.00
5/5/2000 $8,886.00 $7,011.97
5/8/2000 $9,240.00 $6,687.10
5/9/2000 $9,488.00 $6,524.78
5/10/2000 $10,010.00 $6,134.74
5/11/2000 $9,726.00 $6,239.89
5/12/2000 $9,500.00 $6,280.83
5/15/2000 $9,092.00 $6,586.56
5/16/2000 $8,624.00 $6,905.86
5/17/2000 $8,818.00 $6,708.42
5/18/2000 $9,130.00 $6,456.71
5/19/2000 $9,600.00 $6,100.34
5/22/2000 $9,702.00 $6,005.86
5/23/2000 $10,446.00 $5,512.62
5/24/2000 $10,296.00 $5,601.53
5/25/2000 $10,626.00 $5,391.25
5/26/2000 $10,626.00 $5,409.90
5/30/2000 $9,554.00 $6,008.53
5/31/2000 $9,878.00 $5,821.99
6/1/2000 $9,170.00 $6,300.45
6/2/2000 $8,136.00 $7,157.57
6/5/2000 $8,118.00 $7,187.61
6/6/2000 $8,462.00 $6,890.35
6/7/2000 $8,054.00 $7,278.21
6/8/2000 $8,124.00 $7,293.72
6/9/2000 $8,074.00 $7,320.85
6/12/2000 $8,526.00 $6,838.03
6/13/2000 $8,396.00 $6,923.79
6/14/2000 $8,518.00 $6,776.01
6/15/2000 $8,418.00 $6,813.31
6/16/2000 $8,442.00 $6,769.47
6/19/2000 $8,250.00 $7,014.63
6/20/2000 $7,902.00 $7,260.53
6/21/2000 $7,962.00 $7,321.09
6/22/2000 $8,290.00 $7,075.44
6/23/2000 $8,736.00 $6,709.39
6/26/2000 $8,652.00 $6,761.47
6/27/2000 $8,648.00 $6,749.60
6/28/2000 $8,422.00 $6,933.96
6/29/2000 $8,458.00 $6,840.93
6/30/2000 $8,356.00 $6,980.72
7/3/2000 $8,276.00 $7,055.09
7/5/2000 $8,492.00 $6,819.86
7/6/2000 $8,368.00 $6,939.77
7/7/2000 $8,548.00 $6,853.77
7/10/2000 $8,738.00 $6,717.14
7/11/2000 $9,136.00 $6,453.80
7/12/2000 $8,080.00 $7,044.43
7/13/2000 $7,562.00 $7,658.80
7/14/2000 $7,206.00 $7,802.70
7/17/2000 $7,122.00 $7,853.82
7/18/2000 $7,306.00 $7,662.44
7/19/2000 $7,508.00 $7,332.96
7/20/2000 $7,046.00 $7,792.29
7/21/2000 $7,304.00 $7,489.22
7/24/2000 $7,584.00 $7,112.51
7/25/2000 $7,594.00 $7,111.05
7/26/2000 $7,738.00 $6,985.32
7/27/2000 $8,180.00 $6,588.74
7/28/2000 $8,628.00 $6,238.43
7/31/2000 $8,412.00 $6,444.35
8/1/2000 $8,640.00 $6,187.80
8/2/2000 $8,672.00 $6,208.39
8/3/2000 $8,344.00 $6,484.81
8/4/2000 $8,262.00 $6,557.97
8/7/2000 $7,976.00 $6,882.84
8/8/2000 $8,054.00 $6,856.44
8/9/2000 $8,236.00 $6,687.58
8/10/2000 $8,338.00 $6,617.57
8/11/2000 $8,364.00 $6,562.58
8/14/2000 $8,152.00 $6,682.25
8/15/2000 $8,044.00 $6,696.79
8/16/2000 $7,968.00 $6,736.28
8/17/2000 $7,780.00 $6,924.75
8/18/2000 $7,834.00 $6,823.25
8/21/2000 $7,720.00 $6,840.45
8/22/2000 $7,668.00 $6,942.20
8/23/2000 $7,454.00 $7,145.70
8/24/2000 $7,350.00 $7,251.32
8/25/2000 $7,332.00 $7,283.30
8/28/2000 $7,474.00 $7,272.15
8/29/2000 $7,408.00 $7,310.92
8/30/2000 $7,094.00 $7,683.27
8/31/2000 $7,080.00 $7,794.95
</TABLE>
<TABLE>
<CAPTION>
12/21/99-
8/31/00(2)
----------
<S> <C>
INTERNET/SHORT FUND (29.20%)
DJ INTERNET INDEX(1) (22.05%)
</TABLE>
The Internet/Short Fund is designed to provide, on a daily basis, investment
returns that correlate inversely to the performance of the Dow Jones Composite
Interent Index (DJINet). To achieve its objective, the Fund holds short
positions in HOLDRs and options contracts on HOLDRs and a variety of internet
indexes. During the fiscal year, the DJINet declined (22.05%), while the Fund
declined (29.20%).
(1) RETURN DOES NOT INCLUDE CONTINUOUS REINVESTMENT OF DIVIDENDS.
(2) NOT ANNUALIZED.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
10
<PAGE>
--------------------------------------------------------------------------------
DOW 30 PLUS
--------------------------------------------------------------------------------
INVESTOR CLASS
DECEMBER 2, 1999 - AUGUST 31, 2000
[GRAPH]
<TABLE>
<CAPTION>
DOW 30 PLUS FUND DJ INDUSTRIAL AVERAGE INDEX (1)
<S> <C> <C>
12/2/1999 $10,000.00 $10,000.00
12/3/1999 $10,280.00 $10,223.86
12/6/1999 $10,110.00 $10,168.45
12/7/1999 $10,010.00 $10,061.23
12/8/1999 $9,940.00 $10,026.32
12/9/1999 $10,020.00 $10,086.72
12/10/1999 $10,140.00 $10,168.17
12/13/1999 $10,090.00 $10,139.08
12/14/1999 $10,070.00 $10,109.71
12/15/1999 $10,110.00 $10,168.73
12/16/1999 $10,130.00 $10,186.46
12/17/1999 $10,190.00 $10,197.82
12/20/1999 $10,030.00 $10,095.31
12/21/1999 $10,110.00 $10,146.28
12/22/1999 $10,110.00 $10,149.05
12/23/1999 $10,350.00 $10,332.18
12/27/1999 $10,320.00 $10,318.89
12/28/1999 $10,430.00 $10,396.46
12/29/1999 $10,410.00 $10,403.66
12/30/1999 $10,370.00 $10,374.85
12/31/1999 $10,440.00 $10,414.94
1/3/2000 $10,250.00 $10,288.48
1/4/2000 $9,820.00 $9,962.74
1/5/2000 $9,980.00 $10,075.72
1/6/2000 $10,090.00 $10,194.04
1/7/2000 $10,420.00 $10,437.99
1/10/2000 $10,470.00 $10,482.96
1/11/2000 $10,390.00 $10,427.59
1/12/2000 $10,430.00 $10,463.84
1/13/2000 $10,470.00 $10,492.22
1/14/2000 $10,630.00 $10,619.55
1/18/2000 $10,440.00 $10,472.56
1/19/2000 $10,390.00 $10,407.92
1/20/2000 $10,210.00 $10,282.85
1/21/2000 $10,090.00 $10,192.63
1/24/2000 $9,810.00 $9,972.02
1/25/2000 $9,840.00 $9,991.69
1/26/2000 $9,850.00 $9,994.50
1/27/2000 $9,850.00 $9,990.00
1/28/2000 $9,500.00 $9,728.07
1/31/2000 $9,740.00 $9,910.74
2/1/2000 $9,780.00 $10,001.80
2/2/2000 $9,720.00 $9,967.52
2/3/2000 $9,750.00 $9,976.79
2/4/2000 $9,680.00 $9,931.82
2/7/2000 $9,600.00 $9,879.27
2/8/2000 $9,660.00 $9,926.21
2/9/2000 $9,380.00 $9,692.09
2/10/2000 $9,310.00 $9,641.79
2/11/2000 $9,080.00 $9,443.93
2/14/2000 $9,180.00 $9,529.65
2/15/2000 $9,400.00 $9,709.24
2/16/2000 $9,220.00 $9,567.31
2/17/2000 $9,160.00 $9,524.88
2/18/2000 $8,870.00 $9,257.60
2/22/2000 $8,930.00 $9,334.89
2/23/2000 $8,870.00 $9,263.23
2/24/2000 $8,740.00 $9,142.65
2/25/2000 $8,480.00 $8,933.84
2/28/2000 $8,660.00 $9,093.75
2/29/2000 $8,780.00 $9,174.98
3/1/2000 $8,790.00 $9,183.69
3/2/2000 $8,810.00 $9,208.14
3/3/2000 $9,000.00 $9,391.38
3/6/2000 $8,760.00 $9,213.19
3/7/2000 $8,320.00 $8,873.97
3/8/2000 $8,410.00 $8,928.78
3/9/2000 $8,600.00 $9,068.46
3/10/2000 $8,520.00 $8,994.26
3/13/2000 $8,530.00 $9,010.85
3/14/2000 $8,530.00 $8,887.75
3/15/2000 $8,660.00 $9,177.78
3/16/2000 $9,170.00 $9,629.99
3/17/2000 $9,130.00 $9,597.95
3/20/2000 $9,210.00 $9,674.95
3/21/2000 $9,450.00 $9,880.68
3/22/2000 $9,400.00 $9,843.86
3/23/2000 $9,670.00 $10,073.19
3/24/2000 $9,690.00 $10,066.73
3/27/2000 $9,560.00 $9,988.03
3/28/2000 $9,480.00 $9,906.74
3/29/2000 $9,580.00 $9,981.57
3/30/2000 $9,530.00 $9,946.73
3/31/2000 $9,460.00 $9,893.89
4/3/2000 $9,800.00 $10,165.66
4/4/2000 $9,730.00 $10,113.94
4/5/2000 $9,580.00 $9,995.34
4/6/2000 $9,670.00 $10,068.13
4/7/2000 $9,660.00 $10,065.60
4/10/2000 $9,740.00 $10,133.62
4/11/2000 $9,860.00 $10,224.67
4/12/2000 $9,660.00 $10,077.97
4/13/2000 $9,450.00 $9,895.36
4/14/2000 $8,770.00 $9,335.73
4/17/2000 $9,030.00 $9,586.42
4/18/2000 $9,220.00 $9,753.93
4/19/2000 $9,150.00 $9,670.17
4/20/2000 $9,330.00 $9,823.35
4/24/2000 $9,390.00 $9,879.55
4/25/2000 $9,640.00 $10,077.69
4/26/2000 $9,420.00 $9,915.25
4/27/2000 $9,350.00 $9,863.25
4/28/2000 $9,200.00 $9,723.57
5/1/2000 $9,270.00 $9,794.11
5/2/2000 $9,180.00 $9,721.05
5/3/2000 $8,910.00 $9,493.68
5/4/2000 $8,850.00 $9,432.41
5/5/2000 $9,020.00 $9,582.21
5/8/2000 $9,040.00 $9,605.56
5/9/2000 $8,970.00 $9,544.97
5/10/2000 $8,730.00 $9,391.90
5/11/2000 $8,960.00 $9,553.32
5/12/2000 $9,020.00 $9,610.75
5/15/2000 $9,220.00 $9,790.49
5/16/2000 $9,350.00 $9,905.35
5/17/2000 $9,180.00 $9,756.03
5/18/2000 $9,180.00 $9,762.86
5/19/2000 $9,030.00 $9,626.59
5/22/2000 $8,800.00 $9,550.22
5/23/2000 $8,690.00 $9,441.27
5/24/2000 $8,800.00 $9,543.70
5/25/2000 $8,580.00 $9,352.17
5/26/2000 $8,540.00 $9,329.82
5/30/2000 $8,770.00 $9,536.26
5/31/2000 $8,720.00 $9,531.91
6/1/2000 $8,840.00 $9,649.55
6/2/2000 $8,980.00 $9,778.69
6/5/2000 $9,010.00 $9,797.30
6/6/2000 $8,930.00 $9,725.08
6/7/2000 $8,990.00 $9,795.09
6/8/2000 $8,840.00 $9,664.52
6/9/2000 $8,790.00 $9,615.00
6/12/2000 $8,730.00 $9,569.85
6/13/2000 $8,790.00 $9,622.05
6/14/2000 $8,850.00 $9,681.94
6/15/2000 $8,870.00 $9,706.28
6/16/2000 $8,600.00 $9,465.75
6/19/2000 $8,710.00 $9,564.08
6/20/2000 $8,570.00 $9,452.94
6/21/2000 $8,630.00 $9,509.63
6/22/2000 $8,510.00 $9,399.46
6/23/2000 $8,540.00 $9,425.39
6/26/2000 $8,690.00 $9,550.62
6/27/2000 $8,640.00 $9,515.72
6/28/2000 $8,660.00 $9,536.85
6/29/2000 $8,530.00 $9,419.32
6/30/2000 $8,570.00 $9,464.47
7/3/2000 $8,690.00 $9,566.64
7/5/2000 $8,600.00 $9,496.82
7/6/2000 $8,600.00 $9,494.89
7/7/2000 $8,760.00 $9,634.86
7/10/2000 $8,770.00 $9,644.46
7/11/2000 $8,850.00 $9,717.49
7/12/2000 $8,910.00 $9,768.41
7/13/2000 $8,910.00 $9,773.21
7/14/2000 $8,930.00 $9,794.99
7/17/2000 $8,920.00 $9,787.31
7/18/2000 $8,860.00 $9,729.02
7/19/2000 $8,820.00 $9,689.30
7/20/2000 $8,970.00 $9,823.18
7/21/2000 $8,830.00 $9,723.26
7/24/2000 $8,800.00 $9,679.37
7/25/2000 $8,810.00 $9,692.83
7/26/2000 $8,630.00 $9,526.61
7/27/2000 $8,700.00 $9,589.70
7/28/2000 $8,610.00 $9,521.80
7/31/2000 $8,620.00 $9,531.59
8/1/2000 $8,710.00 $9,608.56
8/2/2000 $8,790.00 $9,681.56
8/3/2000 $8,800.00 $9,698.81
8/4/2000 $8,860.00 $9,754.23
8/7/2000 $8,970.00 $9,844.14
8/8/2000 $9,080.00 $9,943.68
8/9/2000 $9,010.00 $9,879.31
8/10/2000 $9,020.00 $9,881.96
8/11/2000 $9,130.00 $9,989.80
8/14/2000 $9,280.00 $10,124.18
8/15/2000 $9,170.00 $10,025.31
8/16/2000 $9,120.00 $9,972.22
8/17/2000 $9,160.00 $10,015.02
8/18/2000 $9,150.00 $10,006.72
8/21/2000 $9,190.00 $10,036.91
8/22/2000 $9,250.00 $10,090.67
8/23/2000 $9,250.00 $10,095.65
8/24/2000 $9,300.00 $10,130.16
8/25/2000 $9,300.00 $10,139.12
8/28/2000 $9,360.00 $10,193.66
8/29/2000 $9,320.00 $10,159.47
8/30/2000 $9,200.00 $10,057.93
8/31/2000 $9,320.00 $10,159.47
</TABLE>
<TABLE>
<CAPTION>
12/2/99-
8/31/00(2)
----------
<S> <C>
DOW 30 PLUS FUND (6.80%)
DJ INDUSTRIAL AVERAGE INDEX(1) 1.59%
</TABLE>
The Dow 30 Plus Fund seeks to provide daily investment returns that correspond
to 125% of the return of the Dow Jones Industrial Average (the "Dow"). The
principal securities in the Fund's portfolio include long positions in all 30
stocks in the Dow and Dow futures contracts. The Dow 30 Plus Fund was launched
on December 2. The Dow peaked for the fiscal year at 11,723 and then pulled back
16%, reaching a low of 9,796 in early March. While a recovery occurred by
mid-March, the Dow continued to trade in the range of 10,500 to 11,200 through
the end of the fiscal year. From the inception of the Fund through the end of
the fiscal year, the Dow returned 1.59%, while the Fund lost (6.80%). The Fund's
underperformance was due primarily to the initial difficulties associated with
implementing the Fund's program with a low level of assets in an extremely
volatile market.
(1) RETURN DOES NOT INCLUDE CONTINUOUS REINVESTMENT OF DIVIDENDS.
(2) NOT ANNUALIZED.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
11
<PAGE>
--------------------------------------------------------------------------------
U.S. PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
------------------------------------------------------- -------------------------------------------------------
SHARES VALUE FACE AMOUNT VALUE
------------------------------------------------------- -------------------------------------------------------
<S> <C> <C> <C> <C> <C>
COMMON STOCKS - 95.61%* U.S. GOVERNMENT AGENCY OBLIGATIONS - 1.08%*
348,086 Standard & Poor's $609,716 Fannie Mae 6.48%,
Depository Receipts 11/30/2000 $ 599,837
Trust $53,028,727 -----------
-----------
TOTAL U.S. GOVERNMENT AGENCY
TOTAL COMMON STOCKS OBLIGATIONS
(Cost $51,742,298) 53,028,727 (Cost $599,946) 599,837
----------- -----------
TOTAL INVESTMENTS - 96.69%*
(Cost $52,342,244) $53,628,564
===========
</TABLE>
--------------------------------------------------------------------------------
U.S. PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF FUTURES CONTRACTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-------------------------------------------------------
UNREALIZED
CONTRACTS GAIN
-------------------------------------------------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED
79 S&P 500 Index Futures
Contracts Expiring
September 2000 (Underlying Face
Amount at Market Value
$30,043,700) $ 567,919
==========
</TABLE>
* Calculated as a percentage of net assets.
See notes to the financial statements.
12
<PAGE>
--------------------------------------------------------------------------------
U.S./SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
------------------------------------------------------- -------------------------------------------------------
FACE AMOUNT VALUE CONTRACTS (100 SHARES PER CONTRACT) VALUE
------------------------------------------------------- -------------------------------------------------------
<S> <C> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS - 124.70%* PUT OPTIONS PURCHASED - 1.35%*
$2,489,675 Fannie Mae 6.48%, 5 S&P 500 Expiring
11/30/2000 $2,449,333 September 2000 at 1575
---------- (Cost $33,125) $ 26,500
----------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS TOTAL PUT OPTIONS
(Cost $2,449,778) 2,449,333 (Cost $33,125) 26,500
---------- ----------
TOTAL INVESTMENTS - 126.05%*
(Cost $2,482,903) $2,475,833
----------
</TABLE>
--------------------------------------------------------------------------------
U.S./SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF OPTIONS WRITTEN
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-------------------------------------------------------
CONTRACTS (100 SHARES PER CONTRACT) VALUE
-------------------------------------------------------
<S> <C> <C>
WRITTEN OPTION CONTRACTS
5 S&P 500 - Call Expiring
September 2000 at 1575 $ 1,000
---------
TOTAL OPTIONS WRITTEN
(Premiums received $1,175) $ 1,000
=========
</TABLE>
* Calculated as a percentage of net assets.
See notes to the financial statements.
13
<PAGE>
--------------------------------------------------------------------------------
U.S./SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF SECURITIES SOLD SHORT
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-------------------------------------------------------
SHARES VALUE
-------------------------------------------------------
<S> <C> <C>
5,300 STANDARD & POOR'S DEPOSITORY
RECEIPTS TRUST $807,422
--------
TOTAL SECURITIES SOLD
SHORT (Proceeds $797,047) $807,422
========
</TABLE>
--------------------------------------------------------------------------------
U.S./SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF SHORT FUTURES CONTRACTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-------------------------------------------------------
UNREALIZED
CONTRACTS LOSS
-------------------------------------------------------
<S> <C> <C>
SHORT FUTURES CONTRACTS
1 S&P 500 Index Futures
Contracts Expiring
September 2000
(Underlying Face Amount
at Market Value $380,300) $ (1,904)
========
</TABLE>
See notes to the financial statements.
14
<PAGE>
--------------------------------------------------------------------------------
OTC PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
---------------------------------------------------------
SHARES VALUE
---------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 94.97%*
178,432 Intel Corporation $ 13,360,096
189,846 Cisco Systems, Inc.** 13,028,182
137,783 Microsoft Corporation** 9,618,976
67,528 JDS Uniphase Corporation** 8,406,181
90,037 Oracle Corporation** 8,187,740
52,573 Sun Microsystems, Inc.** 6,673,485
67,992 QUALCOMM Inc.** 4,071,021
70,805 Nextel Communications, Inc.** 3,925,252
31,001 VERITAS Software
Corporation** 3,737,498
17,808 Siebel Systems, Inc.** 3,522,645
72,457 Dell Computer Corporation** 3,160,937
13,250 PMC-Sierra, Inc.** 3,127,000
32,599 Gemstar- TV Guide
International, Inc.** 2,942,060
32,876 Xilinx, Inc.** 2,921,854
78,352 WorldCom, Inc.** 2,859,848
24,228 Network Appliance, Inc.** 2,834,676
12,755 CIENA Corporation ** 2,827,624
42,600 Altera Corporation** 2,761,012
36,408 Amgen Inc.** 2,760,182
13,868 VeriSign, Inc.** 2,757,998
67,044 ADC Telecommunications,
Inc.** 2,744,614
31,772 Applied Materials, Inc.** 2,742,321
15,838 i2 Technologies, Inc.** 2,679,592
6,700 SDL, Inc.** 2,661,994
30,131 Maxim Integrated
Products, Inc.** 2,642,112
52,238 Immunex Corporation** 2,624,959
19,867 Yahoo! Inc.** 2,413,841
31,835 Linear Technology Corporation 2,290,130
10,771 Applied Micro Circuits
Corporation** 2,185,840
72,059 Global Crossing Ltd.** 2,166,274
34,537 Apple Computer, Inc.** 2,104,598
17,357 VoiceStream Wireless
Corporation** 1,953,747
90,489 Telefonaktiebolaget LM
Ericsson AB - ADR 1,855,025
19,325 Level 3 Communications, Inc.** 1,685,804
39,733 Metromedia Fiber
Network, Inc.** 1,586,837
12,229 Sanmina Corporation** 1,443,022
17,041 MedImmune, Inc.** 1,433,574
<CAPTION>
---------------------------------------------------------
SHARES VALUE
---------------------------------------------------------
<S> <C> <C>
14,802 Vitesse Semiconductor
Corporation** $ 1,314,603
32,607 Comcast Corporation 1,214,611
26,815 Paychex, Inc. 1,196,619
8,927 Adobe Systems Incorporated 1,160,510
19,328 Intuit Inc.** 1,157,264
12,287 Comverse Technology, Inc.** 1,129,636
17,146 KLA-Tencor Corporation** 1,125,206
23,549 CMGI Inc.** 1,053,818
19,117 Chiron Corporation** 1,033,513
17,756 Tellabs, Inc.** 997,665
13,879 Biogen, Inc.** 959,386
29,666 PeopleSoft, Inc.** 956,729
21,319 NTL Incorporated** 934,050
14,910 eBay Inc.** 924,420
18,154 EchoStar Communications
Corporation** 885,008
6,992 QLogic Corporation** 793,592
21,792 BroadVision, Inc.** 751,824
17,769 Amazon.com, Inc.** 737,413
10,368 Lycos, Inc.** 736,128
19,624 Starbucks Corporation** 718,729
19,907 NEXTLINK
Communications, Inc.** 697,989
18,255 Conexant Systems, Inc.** 678,858
15,284 Cintas Corporation 635,241
11,689 Fiserv, Inc.** 633,398
25,924 USA Networks, Inc.** 623,796
13,816 RF Micro Devices, Inc.** 616,539
17,902 Costco Wholesale
Corporation** 616,500
18,179 Biomet, Inc. 614,677
8,088 Genzyme Corporation** 607,106
18,219 Concord EFS, Inc.** 585,285
35,548 McLeodUSA Incorporated** 562,103
11,116 RealNetworks, Inc.** 541,210
4,927 Electronic Arts Inc.** 531,808
28,912 Bed Bath & Beyond Inc.** 507,767
25,306 Atmel Corporation** 506,120
15,323 PanAmSat Corporation** 497,040
19,385 American Power Conversion
Corporation** 461,605
7,350 Molex Incorporated 388,172
14,144 BMC Software, Inc.** 381,888
28,526 Parametric Technology
Corporation** 381,535
</TABLE>
See notes to the financial statements.
15
<PAGE>
--------------------------------------------------------------------------------
OTC PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
---------------------------------------------------------
SHARES VALUE
---------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 94.97%* (CONTINUED)
24,065 Staples, Inc.** $ 369,999
16,731 Citrix Systems, Inc.** 368,082
30,047 Novell, Inc.** 368,076
4,995 Microchip Technology
Incorporated** 339,972
9,944 Adelphia Communications
Corporation** 333,124
21,906 At Home Corporation** 319,006
7,126 Dollar Tree Stores, Inc.** 289,048
10,952 Network Associates, Inc.** 283,383
6,525 PACCAR Inc. 276,905
7,410 CNET Networks, Inc.** 248,235
18,169 Smurfit-Stone Container
Corporation** 238,468
6,180 Synopsys, Inc.** 229,046
13,547 3Com Corporation** 225,219
5,350 Apollo Group, Inc.** 218,347
6,477 Sigma-Aldrich Corporation 188,223
16,915 Compuware Corporation** 178,665
12,283 Quintiles Transnational Corp.** 171,194
5,312 Northwest Airlines Corporation** 166,332
6,514 Adaptec, Inc.** 159,593
4,725 Herman Miller, Inc. 150,905
2,449 PacifiCare Health Systems, Inc.** 132,093
7,195 Legato Systems, Inc.** 87,239
- Palm, Inc.** 4
------------
TOTAL COMMON STOCKS
(Cost $90,134,030) 176,889,070
------------
<CAPTION>
---------------------------------------------------------
CONTRACTS (100 SHARES PER CONTRACT) VALUE
---------------------------------------------------------
<S> <C> <C>
CALL OPTIONS PURCHASED - 1.62%*
67 Nasdaq Index
Expiring September 2000
at 3650 $ 3,009,137
-----------
TOTAL CALL OPTIONS
(Cost $2,399,935) 3,009,137
-----------
<CAPTION>
---------------------------------------------------------
FACE AMOUNT
---------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS - 2.58%*
$4,877,731 Fannie Mae 6.48%,
11/30/2000 4,798,693
------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $4,799,566) 4,798,693
------------
TOTAL INVESTMENTS - 99.17%*
(Cost $97,333,531) $184,696,900
============
</TABLE>
* Calculated as a percentage of net assets.
** Non-income producing security.
See notes to the financial statements.
16
<PAGE>
--------------------------------------------------------------------------------
OTC PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF OPTIONS WRITTEN
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
---------------------------------------------------------
CONTRACTS (100 SHARES PER CONTRACT) VALUE
---------------------------------------------------------
<S> <C> <C>
WRITTEN OPTION CONTRACTS
67 Nasdaq Index - Put
Expiring September 2000
at 3650 $ 64,488
---------
TOTAL OPTIONS WRITTEN
(Premiums received
$267,156) $ 64,488
=========
</TABLE>
--------------------------------------------------------------------------------
OTC PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF FUTURES CONTRACTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
---------------------------------------------------------
UNREALIZED
CONTRACTS GAIN
---------------------------------------------------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED
68 NASDAQ 100 Index
Futures Contracts Expiring
September 2000 (Underlying
Face Amount at Market
Value $27,839,200) $ 1,806,694
===========
</TABLE>
See notes to the financial statements.
17
<PAGE>
--------------------------------------------------------------------------------
OTC/SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
---------------------------------------------------------
FACE AMOUNT VALUE
---------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS - 65.18%*
$2,083,198 Fannie Mae 6.48%,
11/30/2000 $2,049,442
----------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $2,049,815) 2,049,442
----------
TOTAL INVESTMENTS - 65.18%*
(Cost $2,049,815) $2,049,442
==========
</TABLE>
* Calculated as a percentage of net assets.
See notes to the financial statements.
18
<PAGE>
--------------------------------------------------------------------------------
OTC/SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF SECURITIES SOLD SHORT
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
3,268 Intel Corporation $ 244,691
3,477 Cisco Systems, Inc. 238,609
2,524 Microsoft Corporation 176,207
1,237 JDS Uniphase Corporation 153,987
1,649 Oracle Corporation 149,956
963 Sun Microsystems, Inc. 122,241
1,245 QUALCOMM Inc. 74,544
1,297 Nextel Communications, Inc. 71,902
568 VERITAS Software Corporation 68,480
326 Siebel Systems, Inc. 64,487
1,327 Dell Computer Corporation 57,890
597 Gemstar-TV Guide
International, Inc. 53,879
602 Xilinx, Inc. 53,503
224 PMC-Sierra, Inc. 52,864
1,435 WorldCom, Inc. 52,378
444 Network Appliance, Inc. 51,948
234 CIENA Corporation 51,875
667 Amgen Inc. 50,567
780 Altera Corporation 50,554
254 VeriSign, Inc. 50,514
1,228 ADC Telecommunications, Inc. 50,271
582 Applied Materials, Inc. 50,234
290 i2 Technologies, Inc. 49,064
123 SDL, Inc. 48,869
552 Maxim Integrated Products, Inc. 48,403
957 Immunex Corporation 48,089
364 Yahoo! Inc. 44,226
583 Linear Technology Corporation 41,940
197 Applied Micro Circuits
Corporation 39,979
1,320 Global Crossing Ltd. 39,682
633 Apple Computer, Inc. 38,573
318 VoiceStream Wireless Corporation 35,795
1,657 Telefonaktiebolaget LM
Ericsson AB - ADR 33,969
354 Level 3 Communications, Inc. 30,881
728 Metromedia Fiber Network, Inc. 29,075
224 Sanmina Corporation 26,432
312 MedImmune, Inc. 26,247
597 Comcast Corporation 22,238
248 Vitesse Semiconductor
Corporation 22,026
491 Paychex, Inc. 21,911
164 Adobe Systems Incorporated 21,320
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
354 Intuit Inc. $ 21,196
225 Comverse Technology, Inc. 20,686
314 KLA-Tencor Corporation 20,606
431 CMGI Inc. 19,287
350 Chiron Corporation 18,922
325 Tellabs, Inc. 18,261
254 Biogen, Inc. 17,558
543 PeopleSoft, Inc. 17,512
390 NTL Incorporated 17,087
273 eBay Inc. 16,926
333 EchoStar Communications
Corporation 16,234
399 Broadvision Inc. 13,765
190 Lycos, Inc. 13,490
325 Amazon.com, Inc. 13,487
359 Starbucks Corporation 13,148
365 NEXTLINK Communications, Inc. 12,798
334 Conexant Systems, Inc. 12,421
104 QLogic Corporation 11,804
280 Cintas Corporation 11,637
214 Fiserv, Inc. 11,596
475 USA Networks, Inc. 11,430
254 RF Micro Devices, Inc. 11,335
328 Costco Wholesale Corporation 11,295
333 Biomet, Inc. 11,260
148 Genzyme Corporation 11,109
334 Concord EFS, Inc. 10,730
651 McLeodUSA Incorporated 10,294
204 RealNetworks, Inc. 9,932
90 Electronic Arts Inc. 9,714
530 Bed Bath & Beyond Inc. 9,308
464 Atmel Corporation 9,280
281 PanAmSat Corporation 9,115
355 American Power Conversion
Corporation 8,453
135 Molex Incorporated 7,130
259 BMC Software, Inc. 6,993
522 Parametric Technology
Corporation 6,982
441 Staples, Inc. 6,780
550 Novell, Inc. 6,738
306 Citrix Systems, Inc. 6,732
91 Microchip Technology
Incorporated 6,194
401 At Home Corporation 5,840
</TABLE>
See notes to the financial statements.
19
<PAGE>
--------------------------------------------------------------------------------
OTC/SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF SECURITIES SOLD SHORT (CONTINUED)
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
169 Adelphia Communications
Corporation $ 5,661
131 Dollar Tree Stores, Inc. 5,314
201 Network Associates, Inc. 5,201
120 PACCAR Inc. 5,093
136 CNET Networks, Inc. 4,556
333 Smurfit-Stone Container
Corporation 4,371
113 Synopsys, Inc. 4,188
248 3Com Corporation 4,123
98 Apollo Group, Inc. 4,000
125 Sigma-Aldrich Corporation 3,633
310 Compuware Corporation 3,274
225 Quintiles Transnational Corp. 3,136
97 Northwest Airlines Corporation 3,037
119 Adaptec, Inc. 2,915
87 Herman Miller, Inc. 2,779
45 PacifiCare Health Systems, Inc. 2,427
132 Legato Systems, Inc. 1,600
----------
TOTAL SECURITIES SOLD SHORT
(Proceeds $3,718,545) $3,230,673
==========
</TABLE>
See notes to the financial statements.
20
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 30.33%*
1,400 MRV Communications, Inc.** $ 107,888
1,800 The Dexter Corporation 106,425
700 Markel Corporation** 102,113
4,100 Regency Realty Corporation 92,763
2,100 Charles E. Smith Residential
Realty, Inc. 86,363
700 MMC Networks, Inc.** 85,269
1,700 Arthur J. Gallagher & Co. 83,300
1,700 Cambrex Corporation 79,794
500 Plexus Corp.** 77,375
1,400 Minerals Technologies Inc. 72,625
1,500 InFocus Corporation 72,563
900 Coherent, Inc.** 72,450
1,100 Nordson Corporation 71,225
1,400 Essex Property Trust, Inc. 68,863
700 Interwoven, Inc.** 67,200
1,400 OM Group, Inc. 66,325
800 Netro Corporation** 66,100
1,100 Stone Energy Corporation** 65,794
2,600 Haemonetics Corporation** 65,488
6,800 RPM, Inc. 65,025
6,500 Clayton Homes, Inc. 63,375
3,300 Vectren Corporation 62,700
1,700 Aeroflex Incorporated** 62,475
1,900 Hawaiian Electric Industries, Inc. 62,225
1,200 Commerce Bancorp, Inc. 62,025
1,000 Investors Financial
Services Corp. 61,563
1,600 Jacobs Engineering
Group Inc.** 60,800
800 Precision Castparts Corp. 60,800
3,200 Mentor Graphics Corporation** 60,400
1,000 Methode Electronics, Inc. 60,125
600 Informatica Corporation** 60,000
2,300 First Midwest Bancorp, Inc. 59,369
1,800 Superior Industries
International, Inc. 58,388
1,400 Artesyn Technologies, Inc.** 58,187
800 National Computer Systems, Inc. 58,100
3,200 AMCORE Financial, Inc. 57,800
1,000 Silicon Valley Bancshares** 57,625
4,400 TrustCo Bank Corp NY 56,650
1,400 Mitchell Energy &
Development Corp. 56,000
1,500 Primark Corporation** 55,500
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
3,000 Terex Corporation** $ 54,938
1,800 IDEX Corporation 54,675
2,700 Richmond County
Financial Corp. 54,338
1,400 Florida Rock Industries, Inc. 53,813
2,600 Sotheby's Holdings, Inc. 53,788
700 Harman International
Industries, Incorporated 53,725
3,200 MascoTech, Inc. 53,000
1,400 CH Energy Group, Inc. 52,850
1,900 Harsco Corporation 52,844
1,100 Mettler-Toledo
International Inc.** 52,044
8,300 PSS World Medical, Inc.** 51,875
2,500 Washington Federal, Inc. 51,875
800 Medicis Pharmaceutical
Corporation** 51,550
1,700 Cirrus Logic, Inc.** 51,425
2,200 Hospitality Properties Trust 51,150
900 Alpharma Inc. 50,963
1,700 Camden Property Trust 50,894
1,500 Great Lakes Chemical
Corporation 50,625
4,300 Pier 1 Imports, Inc. 50,525
1,000 Inhale Therapeutic
Systems, Inc.** 50,500
500 Tut Systems, Inc.** 50,313
1,300 RLI Corp. 50,050
1,000 Plantronics, Inc.** 49,938
1,800 Lennar Corporation 49,725
400 Exar Corporation** 48,250
3,600 Wisconsin Central
Transportation Corporation** 48,150
600 Leap Wireless
International, Inc.** 47,625
3,400 Pioneer Natural Resources
Company 47,175
1,800 Leucadia National Corporation 47,025
2,100 Mark IV Industries, Inc. 46,988
3,600 Quorum Health Group, Inc.** 46,350
2,100 Jack in the Box Inc.** 46,331
5,200 CYTOGEN Corporation** 46,150
800 MIPS Technologies, Inc.** 45,800
2,700 IndyMac Bancorp, Inc. 45,563
1,700 Veritas DGC Inc.** 45,369
900 Lone Star Technologies, Inc.** 45,225
</TABLE>
See notes to the financial statements.
21
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 30.33%* (CONTINUED)
1,700 Smithfield Foods, Inc.** $ 45,156
600 Natural MicroSystems
Corporation** 44,738
3,200 Bio-Technology General Corp.** 44,600
1,650 Cable Design Technologies
Corporation** 44,550
2,400 Avista Corporation 44,250
2,400 Staten Island Bancorp, Inc. 44,250
1,300 Stillwater Mining Company** 44,200
1,400 Mueller Industries, Inc.** 44,188
600 NVR, Inc.** 44,100
2,700 Kellwood Company 43,200
700 Advent Software, Inc.** 43,138
1,600 Pogo Producing Company 43,000
1,400 Chemed Corporation 42,875
1,300 Bandag, Incorporated 42,331
1,700 York International Corporation 42,288
3,500 CBRL Group, Inc. 42,219
1,300 Roper Industries, Inc. 42,088
4,100 Newpark Resources, Inc.** 42,025
400 Alexion Pharmaceuticals, Inc.** 42,000
700 Enzo Biochem, Inc.** 42,000
2,900 Nationwide Health
Properties, Inc. 41,869
3,100 El Paso Electric Company** 41,656
8,300 IKON Office Solutions, Inc. 41,500
600 Go2Net, Inc.** 41,400
800 Corixa Corporation** 40,950
1,400 BRE Properties, Inc. - Class A 40,862
2,000 Allied Capital Corporation 40,500
900 Bank United Corp. - Class A 40,500
600 E'Town Corporation 40,312
4,700 Humana Inc.** 40,244
4,100 Caremark Rx, Inc.** 40,231
4,700 Sovereign Bancorp, Inc. 39,950
900 Pioneer Group, Inc.** 39,263
1,100 Teleflex Incorporated 39,188
1,700 Citizens Banking Corporation 39,100
1,600 Delta and Pine Land Company 39,100
1,100 Cummins Engine Company, Inc. 39,050
1,500 Commerce Group, Inc. 39,000
800 Varian Inc.** 39,000
3,600 United Dominion Realty
Trust, Inc. 38,925
1,100 Urban Shopping Centers, Inc. 38,431
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
1,400 Chittenden Corporation $ 38,325
1,100 Barrett Resources Corporation** 38,087
800 SPS Technologies, Inc.** 37,650
2,100 Catellus Development
Corporation** 37,537
1,100 Cost Plus, Inc.** 36,987
1,800 Universal Foods Corporation 36,900
800 Varian Medical Systems, Inc.** 36,750
600 Cubist Pharmaceuticals, Inc.** 36,675
1,400 IDEXX Laboratories, Inc.** 36,575
3,500 Worthington Industries, Inc. 36,531
600 Enzon, Inc.** 36,525
1,400 Chateau Communities, Inc. 36,400
1,800 Tupperware Corporation 36,338
3,100 Hooper Holmes, Inc. 36,231
1,000 The Cheesecake Factory
Incorporated** 36,062
600 Proxim, Inc.** 36,038
1,100 Orthodontic Centers of
America, Inc.** 36,025
2,800 Dillard's Inc. - Class A 35,875
400 Veeco Instruments Inc.** 35,850
1,400 LTX Corporation** 35,788
600 Black Box Corporation** 35,700
1,000 Whitney Holding Corporation 35,563
400 Elantec Semiconductor, Inc.** 35,400
2,000 The Earthgrains Company 35,250
2,000 Texas Biotechnology
Corporation** 35,250
400 Netegrity, Inc.** 35,200
1,400 MDU Resources Group, Inc. 35,000
700 Suiza Foods Corporation** 35,000
2,500 Venator Group, Inc.** 35,000
2,100 Sensormatic Electronics
Corporation** 34,913
1,700 Brandywine Realty Trust 34,850
500 Biosite Diagnostics
Incorporated** 34,781
1,300 Colonial Properties Trust 34,775
900 Commonwealth Telephone
Enterprises, Inc.** 34,762
1,000 Louis Dreyfus Natural Gas** 34,750
1,400 J.D. Edwards & Company** 34,737
2,100 Journal Register Company** 34,650
700 AppNet, Inc.** 34,606
1,100 Patterson Energy, Inc.** 34,513
</TABLE>
See notes to the financial statements.
22
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 30.33%* (CONTINUED)
1,400 United Asset Management
Corporation $ 34,300
600 Varian Semiconductor
Equipment Associates, Inc.** 34,275
500 Aurora Biosciences
Corporation** 34,187
1,000 Polaris Industries Inc. 34,125
1,800 Southwest Gas Corporation 33,975
1,900 GTECH Holdings Corporation** 33,963
1,100 Cell Genesys, Inc.** 33,894
1,200 Lee Enterprises, Incorporated 33,600
600 Affiliated Managers
Group, Inc.** 33,450
300 EMCORE Corporation** 33,450
1,200 MicroStrategy Incorporated** 33,450
300 Tollgrade
Communications, Inc.** 33,356
1,800 Flowserve Corporation 33,300
600 C&D Technologies, Inc. 33,150
1,500 Kaydon Corporation 33,094
1,900 Ogden Corporation** 33,012
1,700 Polo Ralph Lauren
Corporation** 32,938
1,700 Trinity Industries, Inc. 32,938
1,100 On Assignment, Inc.** 32,863
2,200 Extended Stay America, Inc.** 32,588
600 Zebra Technologies
Corporation** 32,400
700 DSP Group, Inc.** 32,375
900 Metris Companies Inc. 32,344
1,700 Summit Technology, Inc.** 32,194
400 Dain Rauscher Corporation 32,175
1,100 Kent Electronics Corporation** 32,175
3,100 Prime Hospitality Corp.** 32,163
700 Aspen Technology, Inc.** 32,156
500 Scholastic Corporation** 32,094
1,100 Southwest Bancorporation of
Texas, Inc.** 31,969
2,800 Casey's General Stores, Inc. 31,850
1,100 CEC Entertainment Inc.** 31,762
3,200 Freeport-McMoRan Copper &
Gold, Inc.** 31,400
1,000 Adaptive Broadband
Corporation** 31,250
1,200 Actuate Corporation** 31,125
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
700 CuraGen Corporation** $ 31,062
500 Greater Bay Bancorp 31,000
1,400 MeriStar Hospitality Corporation 30,975
1,500 Ferro Corporation 30,938
1,100 Modine Manufacturing Company 30,938
2,100 John H. Harland Company 30,713
1,100 Silicon Valley Group, Inc.** 30,663
500 Maxim Pharmaceuticals, Inc.** 30,594
7,400 Iomega Corporation** 30,525
800 Cerner Corporation** 30,450
600 Whole Foods Market, Inc.** 30,300
4,400 Modis Professional
Services, Inc.** 30,250
600 UIL Holdings Corporation 30,188
1,200 Corn Products International, Inc. 30,150
700 Pulitzer Inc. 30,144
1,500 United Bankshares, Inc. 29,813
1,000 Footstar, Inc.** 29,750
1,000 Digital Island** 29,687
2,400 Spherion Corporation** 29,550
1,500 D.R. Horton, Inc. 29,437
800 Silicon Image, Inc.** 29,400
2,700 Glenayre Technologies, Inc.** 29,363
1,000 ValueVision International, Inc.** 29,313
1,600 Kulicke and Soffa
Industries, Inc.** 29,100
600 Eaton Vance Corp. 29,062
1,100 Queens County Bancorp Inc. 29,013
700 Neurocrine Biosciences, Inc.** 28,963
1,100 Alliance Semiconductor
Corporation** 28,944
1,600 Community First
Bankshares, Inc. 28,800
1,400 Price Communications
Corporation** 28,700
1,100 Alaska Air Group, Inc.** 28,600
2,500 ShopKo Stores, Inc.** 28,594
2,100 Independence Community
Bank Corp. 28,481
1,600 Sierra Pacific Resources 28,300
600 Titan Pharmaceuticals, Inc.** 28,163
1,700 The First American Corporation 28,050
3,100 Crompton Corporation 27,900
1,000 AmeriCredit Corp.** 27,625
600 Cymer, Inc.** 27,562
800 H.B. Fuller Company 27,450
</TABLE>
See notes to the financial statements.
23
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 30.33%* (CONTINUED)
1,100 Kilroy Realty Corporation $ 27,363
1,300 Vintage Petroleum, Inc. 27,300
500 HNC Software Inc.** 27,203
1,500 Systems & Computer
Technology Corporation** 26,906
1,300 Wave Systems Corp.** 26,813
600 SBA Communications
Corporation** 26,775
900 First Industrial Realty Trust, Inc. 26,719
1,000 Carter-Wallace, Inc. 26,625
5,100 OfficeMax, Inc.** 26,456
1,600 ArvinMeritor, Inc. 26,400
1,000 Alexander & Baldwin, Inc. 26,313
1,000 Health Care Property
Investors, Inc. 26,313
1,000 Provident Financial Group, Inc. 26,313
1,000 Asyst Technologies, Inc.** 26,187
600 Transkaryotic Therapies, Inc.** 26,025
2,300 Unifi, Inc.** 26,019
1,800 Callaway Golf Company 25,987
1,500 Barnes & Noble, Inc.** 25,969
800 United Stationers Inc.** 25,950
2,500 Key Energy Services, Inc.** 25,938
300 United Therapeutics
Corporation** 25,908
500 Sirius Satellite Radio Inc.** 25,750
1,000 Kennametal Inc. 25,625
1,000 Lincare Holdings Inc.** 25,500
1,500 Polaroid Corporation 25,500
1,100 The Manitowoc Company, Inc. 25,231
600 Pharmacopeia, Inc.** 25,163
3,500 TALK.com, Inc.** 25,156
500 Insight Enterprises, Inc.** 25,125
500 Pharmacyclics, Inc.** 25,063
1,000 Immunomedics, Inc.** 25,000
2,400 Covance Inc.** 24,900
2,000 Pennzoil-Quaker State Company 24,875
500 Cobalt Networks, Inc. 24,813
1,000 Kaufman and Broad Home
Corporation 24,812
800 The Scotts Company** 24,800
1,500 Olin Corporation 24,750
600 Cousins Properties, Inc. 24,675
500 Houghton Mifflin Company 24,594
1,800 UCAR International Inc.** 24,525
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
700 Michaels Stores, Inc.** $ 24,500
1,400 Sky Financial Group, Inc. 24,500
600 Metricom, Inc.** 24,413
800 The Men's Wearhouse, Inc.** 24,400
500 ZixIt Corporation** 24,375
800 Korn/Ferry International** 24,350
500 Avocent Corporation** 24,312
600 Weingarten Realty Investors 24,300
800 WPS Resources Corporation 24,050
600 HSB Group, Inc. 23,963
500 Clarent Corporation** 23,875
600 Illuminet Holdings Inc.** 23,850
1,400 Advanced Digital Information
Corporation** 23,800
1,100 Federal Signal Corporation 23,719
2,000 S3 Incorporated** 23,625
700 Potlatch Corporation 23,538
600 F.Y.I. Incorporated** 23,400
1,300 InterDigital Communications
Corporation** 23,238
400 F5 Networks, Inc.** 23,200
700 Emisphere Technologies, Inc.** 23,100
1,200 FileNET Corporation** 23,100
500 Verity, Inc.** 22,875
300 SonicWALL, Inc.** 22,838
1,100 Atmos Energy Corporation 22,825
800 REMEC, Inc.** 22,800
1,300 The Geon Company 22,669
900 Hudson United Bancorp 22,669
1,700 Borders Group, Inc.** 22,631
1,700 Catalytica, Inc.** 22,631
400 NetIQ Corporation** 22,600
600 Wesley Jessen
VisionCare, Inc.** 22,575
300 CV Therapeutics, Inc.** 22,500
1,800 Ruby Tuesday, Inc. 22,500
1,400 Intertrust Technologies
Corporation** 22,488
1,400 La-Z-Boy Incorporated 22,488
600 Kronos Incorporated** 22,425
1,000 Imation Corp.** 22,250
900 Bally Total Fitness Holding
Corporation** 22,219
2,100 Louisiana-Pacific Corporation** 22,181
1,100 First Washington Realty
Trust, Inc. 22,138
</TABLE>
See notes to the financial statements.
24
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
COMMON STOCKS - 30.33%* (CONTINUED)
<S> <C> <C>
1,400 Regis Corporation $ 22,138
1,700 Ligand Pharmaceuticals
Incorporated** 22,100
1,400 A.O. Smith Corporation 22,050
6,300 Bethlehem Steel Corporation** 22,050
500 SERENA Software, Inc.** 22,000
1,000 Fisher Scientific
International Inc.** 21,938
400 SCM Microsystems, Inc.** 21,775
600 ANADIGICS, Inc.** 21,600
600 AnnTaylor Stores Corporation** 21,600
300 Documentum, Inc.** 21,469
1,700 SAGA SYSTEMS, Inc.** 21,463
1,000 Hughes Supply, Inc. 21,300
1,000 Intermedia
Communications Inc.** 20,750
300 Trimeris, Inc.** 20,700
3,800 Charming Shoppes, Inc.** 20,662
700 Dionex Corporation** 20,650
400 PRI Automation, Inc.** 20,650
400 CTS Corporation 20,525
600 FactSet Research Systems Inc. 20,513
600 Texas Industries, Inc. 20,475
600 Allaire Corporation** 20,363
1,400 Eclipsys Corporation** 20,125
2,900 The FINOVA Group Inc. 20,119
1,100 Mills Corp. 19,938
900 Superconductor
Technologies Inc.** 19,913
600 ILEX Oncology, Inc.** 19,800
1,100 Project Software &
Development, Inc.** 19,800
1,400 ITC/\DeltaCom, Inc.** 19,775
1,700 Wallace Computer Services, Inc. 19,763
1,100 Southern Union Company** 19,731
2,800 Total Renal Care
Holdings, Inc.** 19,600
1,200 The Timken Company 19,575
2,000 Quantum Corporation - Hard
Disk Drive** 19,500
1,900 STERIS Corporation** 19,475
600 Geron Corporation** 19,388
1,200 Furniture Brands
International, Inc.** 19,350
800 ACNielson Corporation** 19,250
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
2,600 Ohio Casualty Corporation $ 19,175
600 ONEOK, Inc. 19,163
300 Diamond Technology Partners
Incorporated** 19,144
800 Chesapeake Corporation 19,100
1,500 Robotic Vision Systems, Inc.** 19,031
800 AXENT Technologies, Inc.** 19,000
600 Hyperion Solutions
Corporation** 18,975
500 Helix Technology Corporation 18,938
300 Invitrogen Corporation** 18,938
700 ABM Industries Incorporated 18,900
1,800 AGCO Corporation 18,900
700 Ethan Allen Interiors Inc. 18,856
900 The Macerich Company 18,844
1,100 Concurrent Computer
Corporation** 18,837
800 Philadelphia Suburban
Corporation 18,750
800 AptarGroup, Inc. 18,650
800 Summit Properties Inc. 18,600
600 Xircom, Inc.** 18,525
900 National Golf Properties, Inc. 18,450
300 Forrester Research, Inc.** 18,338
1,000 Arch Chemicals, Inc. 18,188
1,500 Legato Systems, Inc.** 18,187
800 Applebee's International, Inc. 18,150
400 Atwood Oceanics, Inc.** 18,150
600 The Toro Company 18,150
2,100 Midway Games Inc.** 18,113
800 Dollar Thrifty Automotive
Group, Inc.** 18,100
1,100 Elcor Corporation 18,081
600 Storage USA, Inc. 18,075
1,800 Rare Medium Group, Inc.** 18,000
400 Aware, Inc.** 17,925
900 Pegasus Solutions Inc.** 17,888
700 Black Hills Corporation 17,850
1,000 Rayovac Corporation** 17,750
1,300 eLoyalty Corporation** 17,713
300 Osicom Technologies, Inc.** 17,700
2,800 MTI Technology Corporation** 17,675
900 Baldor Electric Company 17,662
600 CMP Group Inc. 17,625
1,900 Wit Soundview Group, Inc.** 17,575
500 New Era of Networks, Inc.** 17,531
</TABLE>
See notes to the financial statements.
25
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
COMMON STOCKS - 30.33%* (CONTINUED)
<S> <C> <C>
600 G & K Services, Inc. - Class A $ 17,400
1,000 ESS Technology, Inc.** 17,312
1,300 Interliant Inc.** 17,225
700 Gene Logic Inc.** 17,194
700 Puma Technology, Inc.** 17,019
600 Mercury Computer
Systems, Inc.** 17,006
1,400 Steel Dynamics, Inc.** 16,975
800 Mentor Corporation 16,950
2,400 NBTY, Inc.** 16,950
1,000 American Italian Pasta
Company** 16,938
700 Mid-America Apartment
Communities, Inc. 16,931
800 R. H. Donnelley Corporation** 16,800
2,100 W.R. Grace & Co.** 16,669
400 Rayonier Inc. 16,625
900 Mpower Communications Corp.** 16,594
800 Pinnacle Entertainment, Inc.** 16,500
900 QRS Corporation** 16,481
1,100 Adelphia Business
Solutions, Inc.** 16,431
1,100 Apria Healthcare Group Inc.** 16,362
1,200 Policy Management Systems
Corporation** 16,200
800 Renal Care Group, Inc.** 16,200
1,400 JLG Industries, Inc. 16,188
1,100 America West Holdings
Corporation - Class B** 16,088
600 ATMI, Inc.** 16,078
1,800 Wausau-Mosinee Paper
Corporation 15,975
600 Dendrite International, Inc.** 15,937
800 SuperGen, Inc.** 15,750
700 Del Webb Corporation 15,663
500 PLX Technology, Inc.** 15,656
1,000 Pittston Brink's Group 15,563
800 MedQuist Inc.** 15,500
400 AXT, Inc.** 15,450
700 Banta Corporation 15,444
1,700 Rhythms NetConnections Inc.** 15,300
900 Syntroleum Corporation** 15,300
1,000 Horace Mann Educators
Corporation 15,250
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
300 WatchGuard
Technologies, Inc.** $ 14,738
700 Broadbase Software, Inc.** 14,656
1,800 Allied Riser Communications
Corporation** 14,625
1,000 Lincoln Electric Holdings, Inc. 14,625
700 Citadel Communications
Corporation** 14,350
800 ACTV, Inc.** 14,250
1,100 The Standard Register Company 14,094
600 Remedy Corporation** 14,025
500 Commercial Metals Company 13,969
600 C-Cube Microsystems Inc.** 13,950
300 Extended Systems
Incorporated** 13,763
800 Answerthink Inc.** 13,700
1,000 Viatel, Inc.** 13,688
800 Power Integrations, Inc.** 13,600
1,500 World Access, Inc.** 13,594
400 Chelsea GCA Realty, Inc. 13,425
600 E. W. Blanch Holdings, Inc. 13,162
700 Transaction Systems
Architects, Inc. - Class A** 12,863
600 Accrue Software, Inc.** 12,788
800 Primus Telecommunications
Group, Incorporated** 12,750
1,700 UNOVA, Inc.** 12,750
500 Cleveland-Cliffs Inc. 12,562
400 USFreightways Corporation 12,475
1,300 iXL Enterprises, Inc. 12,431
700 SportsLine.com, Inc.** 12,381
600 Cohu, Inc. 12,300
1,800 Rollins Truck Leasing Corp. 12,150
400 Keynote Systems, Inc.** 12,100
1,100 Ziff-Davis Inc. - ZD** 12,100
2,300 Owens Corning 11,931
700 Presstek, Inc.** 11,856
1,100 Wabtec Corporation 11,413
800 Provident Bankshares
Corporation 11,400
1,100 CIBER, Inc.** 11,344
500 Papa John's
International, Inc.** 11,313
800 InterTAN, Inc.** 11,100
800 Viant Corporation** 11,100
1,300 StarMedia Network, Inc.** 11,050
</TABLE>
See notes to the financial statements.
26
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
COMMON STOCKS - 30.33%* (CONTINUED)
<S> <C> <C>
1,300 Open Market, Inc.** $ 10,969
2,500 USEC Inc. 10,938
800 Ralcorp Holdings, Inc.** 10,800
1,700 Brightpoint, Inc.** 10,731
700 O'Reilly Automotive, Inc.** 10,675
300 Three-Five Systems, Inc.** 9,975
400 Lands' End, Inc.** 9,775
300 Bottomline Technologies, Inc.** 9,506
1,400 Del Monte Foods Company** 9,187
900 Computer Horizons Corp.** 8,606
1,100 Internet Pictures Corporation** 8,594
600 Sykes Enterprises,
Incorporated** 8,438
1,400 ICG Communications, Inc.** 8,356
300 Great Plains Software, Inc.** 8,156
600 Pacific Sunwear of
California, Inc.** 7,988
1,200 UICI** 7,950
600 Georgia Gulf Corporation 7,800
300 Concord Communications, Inc.** 7,200
800 Visual Networks, Inc.** 6,450
700 The Profit Recovery Group
International, Inc.** 6,322
1,000 CapRock Communications
Corp.** 5,937
300 MICROS Systems, Inc.** 5,269
500 Intraware, Inc.** 5,250
700 iGATE Capital Corporation** 5,097
300 Mercator Software, Inc.** 4,688
300 Network Peripherals Inc.** 4,313
700 Cambridge Technology
Partners, Inc.** 4,309
800 Applied Power Inc. 3,950
500 Ames Department Stores, Inc.** 2,531
-- Conagra, Inc.** 4
----------
TOTAL COMMON STOCKS
(Cost $14,045,778) 14,830,768
----------
<CAPTION>
-----------------------------------------------------------------
FACE AMOUNT VALUE
-----------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 50.85%*
<S> <C> <C>
$25,277,826 Fannie Mae 6.48%,
11/30/2000 $24,868,225
-----------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $24,872,749) 24,868,225
-----------
<CAPTION>
-----------------------------------------------------------------
CONTRACTS (100 SHARES PER CONTRACT)
-----------------------------------------------------------------
CALL OPTIONS PURCHASED - 1.70%*
<S> <C> <C>
60 Russell 2000 Index Expiring
September 2000 at 460 462,000
55 Russell 2000 Index Expiring
September 2000 at 470 369,188
-----------
TOTAL CALL OPTIONS
(Cost $668,813) 831,188
-----------
TOTAL INVESTMENTS - 82.88%*
(Cost $39,587,340) $40,530,181
===========
</TABLE>
* Calculated as a percentage of net assets.
** Non-income producing security.
See notes to the financial statements.
27
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF OPTIONS WRITTEN
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
CONTRACTS (100 SHARES PER CONTRACT) VALUE
-----------------------------------------------------------------
WRITTEN OPTION CONTRACTS
<S> <C> <C>
60 Russell 2000 Index - Put
Expiring September 2000
at 460 $ 1,125
55 Russell 2000 Index - Put
Expiring September 2000
at 470 1,031
-----------
TOTAL OPTIONS WRITTEN
(Premiums received $28,980) $ 2,156
===========
</TABLE>
--------------------------------------------------------------------------------
SMALL CAP PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF FUTURES CONTRACTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
UNREALIZED
CONTRACTS GAIN
-----------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
<S> <C> <C>
149 Russell 2000 Index Futures
Contracts Expiring
September 2000
(Underlying Face Amount at
Market Value $40,010,225) $ 859,754
===========
</TABLE>
See notes to the financial statements.
28
<PAGE>
--------------------------------------------------------------------------------
SMALL CAP/SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
FACE AMOUNT VALUE
-----------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 67.61%*
<S> <C> <C>
$25,405 Fannie Mae 6.48%,
11/30/2000 $24,993
-------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $24,998) 24,993
-------
TOTAL INVESTMENTS - 67.61%*
(Cost $24,998) $24,993
=======
</TABLE>
* Calculated as a percentage of net assets.
See notes to the financial statements.
29
<PAGE>
--------------------------------------------------------------------------------
INTERNET PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
COMMON STOCKS - 99.39%*
<S> <C> <C>
6,120 VeriSign, Inc.** $ 1,217,115
19,262 America Online, Inc.** 1,129,235
6,436 i2 Technologies, Inc.** 1,088,891
6,828 Ariba, Inc.** 1,074,557
14,745 Exodus Communications, Inc.** 1,009,111
13,015 BEA Systems, Inc.** 885,833
5,533 Check Point Software
Technologies Ltd.** 806,781
6,603 TIBCO Software Inc.** 673,093
3,796 Inktomi Corporation** 494,903
8,814 CMGI Inc.** 394,427
8,563 Internet Capital Group, Inc.** 298,635
7,768 Vignette Corporation** 296,155
8,266 BroadVision, Inc.** 285,177
4,537 Commerce One, Inc.** 283,704
7,219 InfoSpace, Inc.** 281,541
3,616 Akamai Technologies, Inc.** 273,234
5,392 RealNetworks, Inc.** 262,523
12,841 At Home Corporation** 186,997
4,376 DoubleClick Inc.** 178,049
2,901 Verio Inc.** 173,879
2,392 Lycos, Inc.** 169,832
9,324 E*TRADE Group, Inc.** 165,501
2,649 eBay Inc.** 164,238
2,719 VerticalNet, Inc.** 144,787
1,153 Yahoo! Inc.** 140,090
3,369 Amazon.com, Inc.** 139,813
7,642 Healtheon/WebMD Corporation** 134,690
7,172 PSINet Inc.** 125,958
6,633 Ameritrade Holding Corporation** 124,783
2,084 CheckFree Holdings Corporation** 107,977
3,174 CNET Networks, Inc.** 106,329
3,871 Priceline.com Incorporated** 105,243
5,655 Covad Communications
Group, Inc.** 92,247
2,989 Ticketmaster Online -
CitySearch, Inc.** 71,923
980 Go2Net, Inc.** 67,620
2,213 Digital Island** 65,698
11,759 Webvan Group Inc.** 47,036
3,901 EarthLink, Inc.** 43,886
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
2,715 MP3.com, Inc.** $ 22,399
4,879 eToys Inc.** 21,955
-----------
TOTAL COMMON STOCKS
(Cost $11,279,017) 13,355,845
-----------
<CAPTION>
-----------------------------------------------------------------
FACE AMOUNT
-----------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.37%*
<S> <C> <C>
$50,810 Fannie Mae 6.48%,
11/30/2000 49,986
-----------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $49,995) 49,986
-----------
-----------------------------------------------------------------
CONTRACTS (100 SHARES PER CONTRACT)
-----------------------------------------------------------------
CALL OPTIONS PURCHASED - 3.83%*
<S> <C> <C>
43 Inter@ctive Week Internet Index
Expiring September 2000 at 480 353,138
12 TheStreet.com Index Expiring
September 2000 at 710 161,400
-----------
TOTAL CALL OPTIONS
(Cost $361,875) 514,538
-----------
TOTAL INVESTMENTS - 103.59%*
(Cost $11,690,887) $13,920,369
===========
</TABLE>
* Calculated as a percentage of net assets.
** Non-income producing security.
See notes to the financial statements.
30
<PAGE>
--------------------------------------------------------------------------------
INTERNET PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF OPTIONS WRITTEN
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
CONTRACTS (100 SHARES PER CONTRACT) VALUE
-----------------------------------------------------------------
WRITTEN OPTION CONTRACTS
<S> <C> <C>
43 Inter@ctive Week Internet
Index - Put Expiring
September 2000 at 480 $ 2,150
12 TheStreet.com Index - Put
Expiring September 2000
at 710 1,950
-----------
TOTAL OPTIONS WRITTEN
(Premiums received $65,098) $ 4,100
===========
</TABLE>
See notes to the financial statements.
31
<PAGE>
--------------------------------------------------------------------------------
INTERNET/SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
FACE AMOUNT VALUE
-----------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 96.86%*
<S> <C> <C>
$965,384 Fannie Mae 6.48%,
11/30/2000 $949,741
--------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $949,914) 949,741
--------
<CAPTION>
-----------------------------------------------------------------
CONTRACTS (100 SHARES PER CONTRACT)
-----------------------------------------------------------------
PUT OPTIONS PURCHASED - 2.65%*
<S> <C> <C>
1 GSTI Internet Index Expiring
September 2000 at 500 2,731
5 DJ Internet Index Expiring
September 2000 at 200 15,813
4 Internet HOLDRs Trust Expiring
September 2000 at 135 7,450
--------
TOTAL PUT OPTIONS
(Cost $43,262) 25,994
--------
TOTAL INVESTMENTS - 99.51%*
(Cost $993,176) $975,735
========
</TABLE>
* Calculated as a percentage of net assets.
See notes to the financial statements.
32
<PAGE>
--------------------------------------------------------------------------------
INTERNET/SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF OPTIONS WRITTEN
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
CONTRACTS (100 SHARES PER CONTRACT) VALUE
-----------------------------------------------------------------
<S> <C> <C>
WRITTEN OPTION CONTRACTS
1 GSTI Internet Index - Call Expiring
September 2000 at 500 $ 906
5 DJ Internet Index - Call Expiring
September 2000 at 200 219
4 The Internet HOLDRs Trust -
Call Expiring September
2000 at 135 75
-----------
TOTAL OPTIONS WRITTEN
(Premiums received $1,050) $ 1,200
===========
</TABLE>
--------------------------------------------------------------------------------
INTERNET/SHORT FUND
--------------------------------------------------------------------------------
SCHEDULE OF SECURITIES SOLD SHORT
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
1,300 Internet Infrastucture
HOLDRs Trust $ 81,575
400 Internet HOLDRs Trust 46,675
-----------
TOTAL SECURITIES SOLD
SHORT (Proceeds $131,057) $ 128,250
===========
</TABLE>
See notes to the financial statements.
33
<PAGE>
--------------------------------------------------------------------------------
DOW 30 PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 91.43%*
8,798 J.P. Morgan & Co. $1,470,916
8,798 International Business
Machines Corporation (IBM) 1,161,336
8,798 Hewlett-Packard Company 1,062,359
8,798 Minnesota Mining and
Manufacturing Company (3M) 818,214
8,798 Johnson & Johnson 808,866
8,798 Exxon Mobil Corporation 718,137
8,798 Intel Corporation 658,750
8,798 General Motors Corporation 635,106
8,798 Merck & Co., Inc. 614,760
8,798 Microsoft Corporation** 614,210
8,798 United Technologies Corporation 549,325
8,798 Eastman Kodak Company 547,676
8,798 The Procter & Gamble Company 543,826
8,798 American Express Company 520,182
8,798 General Electric Company 516,333
8,798 Citigroup Inc. 513,622
8,798 The Boeing Company 471,793
8,798 The Coca-Cola Company 462,995
<CAPTION>
-----------------------------------------------------------------
SHARES VALUE
-----------------------------------------------------------------
<S> <C> <C>
8,798 The Home Depot, Inc. $ 422,854
8,798 Wal-Mart Stores, Inc. 417,355
8,798 E.I. du Pont de Nemours
and Company 394,810
8,798 SBC Communications Inc. 367,317
8,798 The Walt Disney Company 342,572
8,798 Honeywell International Inc. 339,273
3,000 DIAMONDS Trust, Series I 337,406
8,798 Caterpillar Inc. 323,326
8,798 Alcoa Inc. 292,533
8,798 International Paper Company 280,436
8,798 AT&T Corp. 277,137
8,798 McDonald's Corporation 262,840
8,798 Philip Morris Companies Inc. 260,641
-----------
TOTAL COMMON STOCKS
(Cost $15,995,652) 17,006,906
-----------
TOTAL INVESTMENTS - 91.43%*
(Cost $15,995,652) $17,006,906
===========
</TABLE>
* Calculated as a percentage of net assets.
** Non-income producing security.
--------------------------------------------------------------------------------
DOW 30 PLUS FUND
--------------------------------------------------------------------------------
SCHEDULE OF FUTURES CONTRACTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
---------------------------------------------------------
UNREALIZED
CONTRACTS GAIN
---------------------------------------------------------
<S> <C> <C>
FUTURES CONTRACTS PURCHASED
56 Dow Jones Industrial Average
Index Futures Contracts
Expiring September 2000
(Underlying Face Amount
at Market Value $6,305,600) $ 13,898
=========
</TABLE>
See notes to the financial statements.
34
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
<TABLE>
<CAPTION>
---------------------------------------------------------------
FACE AMOUNT VALUE
---------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS - 175.35%*
$31,705,254 Fannie Mae 6.48%,
11/30/2000 $31,197,177
-----------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $31,197,177) 31,197,177
-----------
TOTAL INVESTMENTS - 175.35%*
(Cost $31,197,177) $31,197,177
===========
* Calculated as a percentage of net assets.
</TABLE>
See notes to the financial statements.
35
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POTOMAC FUNDS U.S. PLUS U.S./SHORT OTC PLUS
FUND FUND FUND
----------- ----------- ------------
<S> <C> <C> <C>
ASSETS:
Investments, at market value (Note 2) ................................. $53,628,564 $ 2,475,833 $184,696,900
Cash .................................................................. 48,050 16,789 339,717
Receivable for investments sold ....................................... -- 10,590 160,343
Receivable for Fund shares sold ....................................... 1,546,030 701,650 2,551,887
Receivable from Investment Advisor .................................... -- -- 147,487
Receivable from broker ................................................ 338,791 -- 805,800
Deposit at broker ..................................................... 1,443,750 1,429,376 2,142,000
Dividends and interest receivable ..................................... -- -- 5,514
Organization costs, net of accumulated amortization (Note 1) .......... 6,656 6,810 6,656
Other assets .......................................................... 186,028 19,530 23,092
----------- ----------- ------------
Total Assets .................................................... 57,197,869 4,660,578 190,879,396
----------- ----------- ------------
LIABILITIES:
Securities sold short, at value (Proceeds of $0, $797,047, $0) ........ -- 807,422 --
Written options, at value (Premiums received of $0, $1,175,
$267,156) .......................................................... -- 1,000 64,488
Payable for investments purchased ..................................... 1,615,082 274,665 3,967,566
Payable for Fund shares redeemed ...................................... 31,720 1,584,851 223,592
Payable to Investment Advisor ......................................... 5,962 12,953 --
Payable to broker ..................................................... -- 8,805 --
Accrued expenses and other liabilities ................................ 79,437 6,743 374,663
----------- ----------- ------------
Total Liabilities ............................................... 1,732,201 2,696,439 4,630,309
----------- ----------- ------------
NET ASSETS ............................................................ $55,465,668 $ 1,964,139 $186,249,087
=========== =========== ============
NET ASSETS CONSIST OF:
Capital stock ......................................................... $59,377,504 $ 6,477,093 $127,331,729
Accumulated undistributed net investment income (loss) ................ -- 83,707 --
Accumulated undistributed net realized gain (loss) on investments
sold, securities sold short, written option
contracts expired or closed, and futures ........................... (5,766,075) (4,577,487) (30,455,373)
Net unrealized appreciation (depreciation) on:
Investments ........................................................ 1,286,320 (7,070) 87,363,369
Short positions .................................................... -- (10,375) --
Written options .................................................... -- 175 202,668
Futures ............................................................ 567,919 (1,904) 1,806,694
----------- ----------- ------------
Total Net Assets ................................................ $55,465,668 $ 1,964,139 $186,249,087
=========== =========== ============
CALCULATION OF NET ASSET VALUE PER SHARE - INVESTOR CLASS:
Net assets ............................................................ $55,311,201 $ 1,964,139 $184,751,134
Shares outstanding
(unlimited shares of beneficial interest authorized, no par value) .... 3,253,670 66,968 4,186,142
Net Asset Value, Redemption Price and Offering Price Per Share ........ $ 17.00 $ 29.33 $ 44.13
=========== =========== ============
CALCULATION OF NET ASSET VALUE PER SHARE - ADVISOR CLASS:
Net assets ............................................................ $ 70,718 $ 1,486,399
Shares outstanding
(unlimited shares of beneficial interest authorized, no par value) .... 4,172 33,727
Net Asset Value, Redemption Price and Offering Price Per Share ........ $ 16.95 $ 44.07
=========== ============
CALCULATION OF NET ASSET VALUE PER SHARE - BROKER CLASS:
Net assets ............................................................ $ 83,749 $ 11,554
Shares outstanding
(unlimited shares of beneficial interest authorized, no par value) .... 4,940 262
Net Asset Value, Redemption Price and Offering Price Per Share ........ $ 16.95 $ 44.07*
=========== ============
Cost of Investments ................................................... $52,342,244 $2,482,903 $ 97,333,531
=========== =========== ============
</TABLE>
*NET ASSET VALUE DOES NOT RECALCULATE DUE TO FRACTIONAL SHARES OUTSTANDING.
See notes to the financial statements.
36
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POTOMAC FUNDS OTC/SHORT SMALL CAP PLUS SMALL CAP/SHORT
FUND FUND FUND
----------- --------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investments, at market value (Note 2) ................................ $ 2,049,442 $40,530,181 $ 24,993
Cash ................................................................. 142,464 37,587 10,405
Receivable for investments sold ...................................... -- 100,887 --
Receivable for Fund shares sold ...................................... 59,000 8,166,389 --
Receivable from Investment Advisor ................................... -- 6,563 7,584
Receivable from broker ............................................... -- 191,354 --
Deposit at broker .................................................... 4,329,354 2,379,000 46,703
Dividends and interest receivable .................................... -- 12,014 --
Organization costs, net of accumulated amortization (Note 1) ......... 6,622 -- --
Other assets ......................................................... 64,607 32,280 6,452
------------ ----------- -----------
Total Assets ................................................... 6,651,489 51,456,255 96,137
------------ ----------- -----------
LIABILITIES:
Securities sold short, at value (Proceeds of $3,718,545, $0, $0) ..... 3,230,673 -- --
Written options, at value (Premiums received of $0, $28,980, $0) ..... -- 2,156 --
Payable for investments purchased .................................... 44,999 -- 32,250
Payable for Fund shares redeemed ..................................... 197,310 2,447,377 --
Payable to Investment Advisor ........................................ 2,865 -- --
Payable to broker .................................................... 11,955 -- --
Accrued expenses and other liabilities ............................... 19,282 105,384 26,918
------------ ----------- -----------
Total Liabilities .............................................. 3,507,084 2,554,917 59,168
------------ ----------- -----------
NET ASSETS ........................................................... $ 3,144,405 $48,901,338 $ 36,969
============ =========== ===========
NET ASSETS CONSIST OF:
Capital stock ........................................................ $ 23,434,142 $56,711,320 $ 1,402,138
Accumulated undistributed net investment income (loss) ............... 130,831 -- 190,579
Accumulated undistributed net realized gain (loss) on investments
sold, securities sold short, written option
contracts expired or closed, and futures .......................... (20,908,067) (9,639,401) (1,555,743)
Net unrealized appreciation (depreciation) on:
Investments ....................................................... (373) 942,841 (5)
Short positions ................................................... 487,872 -- --
Written options ................................................... -- 26,824 --
Futures ........................................................... -- 859,754 --
------------ ----------- -----------
Total Net Assets ............................................... $ 3,144,405 $48,901,338 $ 36,969
============ =========== ===========
CALCULATION OF NET ASSET VALUE PER SHARE - INVESTOR CLASS:
Net assets ........................................................... $ 3,144,405 $34,065,099 $ 36,969
Shares outstanding
(unlimited shares of beneficial interest authorized, no par value) ... 378,427 2,707,469 852
Net Asset Value, Redemption Price and Offering Price Per Share ....... $ 8.31 $ 12.58 $ 43.37*
============ =========== ===========
CALCULATION OF NET ASSET VALUE PER SHARE - ADVISOR CLASS:
Net assets ........................................................... $ 2,801,317
Shares outstanding
(unlimited shares of beneficial interest authorized, no par value) ... 223,057
Net Asset Value, Redemption Price and Offering Price Per Share ....... $ 12.56
===========
CALCULATION OF NET ASSET VALUE PER SHARE - BROKER CLASS:
Net assets ........................................................... $12,034,922
Shares outstanding
(unlimited shares of beneficial interest authorized, no par value) ... 957,466
Net Asset Value, Redemption Price and Offering Price Per Share ....... $ 12.57
===========
Cost of Investments .................................................. $ 2,049,815 $39,587,340 $ 24,998
============ =========== ===========
</TABLE>
*NET ASSET VALUE DOES NOT RECALCULATE DUE TO FRACTIONAL SHARES OUTSTANDING.
See notes to the financial statements.
37
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT
POTOMAC FUNDS INTERNET PLUS INTERNET/SHORT DOW 30 PLUS MONEY MARKET
FUND FUND FUND FUND
-------------- -------------- ----------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at market value (Note 2) ......................... $13,920,369 $ 975,735 $17,006,906 $31,197,177
Cash .......................................................... 21,278 20,055 -- --
Receivable for investments sold ............................... -- -- 1,473,527 --
Receivable for Fund shares sold ............................... 2,063,410 -- 725,000 225,273
Receivable from Investment Advisor ............................ -- 2,017 3,751 61,891
Receivable from broker ........................................ -- -- -- --
Deposit at broker ............................................. -- 114,496 140,000 --
Dividends and interest receivable ............................. -- -- 80,924 --
Organization costs, net of accumulated amortization (Note 1) .. -- -- -- 6,656
Other assets .................................................. 28,368 1,861 10,436 23,787
----------- ------------ ----------- -----------
Total Assets ............................................ 16,033,425 1,114,164 19,440,544 31,514,784
----------- ------------ ----------- -----------
LIABILITIES:
Securities sold short, at value (Proceeds of $0, $131,057,
$0, $0) .................................................... -- 128,250 -- --
Written options, at value (Premiums received of $65,098,
$1,050, $0, $0) ............................................ 4,100 1,200 -- --
Payable for investments purchased ............................. 2,516,056 -- -- --
Payable for Fund shares redeemed .............................. 49,333 -- 99,841 13,518,317
Payable to Investment Advisor ................................. 1,935 -- -- --
Payable to custodian .......................................... -- -- 708,478 42,153
Dividends payable ............................................. -- -- -- 21,864
Accrued expenses and other liabilities ........................ 24,718 4,180 31,529 140,931
----------- ------------ ----------- -----------
Total Liabilities ....................................... 2,596,142 133,630 839,848 13,723,265
----------- ------------ ----------- -----------
NET ASSETS .................................................... $13,437,283 $ 980,534 $18,600,696 $17,791,519
=========== ============ =========== ===========
NET ASSETS CONSIST OF:
Capital stock ................................................. $19,510,995 $ 3,847,611 $21,943,950 $17,785,074
Accumulated undistributed net investment income (loss) ........ -- -- -- 6,445
Accumulated undistributed net realized gain (loss) on
investments sold, securities sold short, written option
contracts expired or closed, and futures ................... (8,364,192) (2,852,293) (4,368,406) --
Net unrealized appreciation (depreciation) on:
Investments ................................................ 2,229,482 (17,441) 1,011,254 --
Short positions ............................................ -- 2,807 -- --
Written options ............................................ 60,998 (150) -- --
Futures .................................................... -- -- 13,898 --
----------- ------------ ----------- -----------
Total Net Assets ........................................ $13,437,283 $ 980,534 $18,600,696 $17,791,519
=========== ============ =========== ===========
CALCULATION OF NET ASSET VALUE PER SHARE - INVESTOR CLASS:
Net assets .................................................... $ 8,126,643 $ 980,534 $18,509,233 $16,402,144
Shares outstanding
(unlimited shares of beneficial interest authorized,
no par value) ............................................... 961,741 27,697 1,985,729 16,402,144
Net Asset Value, Redemption Price and Offering Price Per Share. $ 8.45 $ 35.40 $ 9.32 $ 1.00
=========== ============ =========== ===========
CALCULATION OF NET ASSET VALUE PER SHARE - ADVISOR CLASS:
Net assets .................................................... $ 5,310,640 $ 86,355 $ 678,918
Shares outstanding
(unlimited shares of beneficial interest authorized, no
par value) .................................................. 628,395 9,270 678,918
Net Asset Value, Redemption Price and Offering Price Per Share. $ 8.45 $ 9.32 $ 1.00
=========== =========== ===========
CALCULATION OF NET ASSET VALUE PER SHARE - BROKER CLASS:
Net assets .................................................... $ 5,108 $ 710,457
Shares outstanding
(unlimited shares of beneficial interest authorized,
no par value) ............................................... 548 710,457
Net Asset Value, Redemption Price and Offering Price
Per Share ................................................... $ 9.32 $ 1.00
=========== ===========
Cost of Investments ........................................... $11,690,887 $ 993,176 $15,995,652 $31,197,177
=========== ============ =========== ===========
</TABLE>
See notes to the financial statements.
38
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POTOMAC FUNDS U.S. PLUS U.S./SHORT OTC PLUS
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income (net of withholding tax of $1,017 for the OTC
Plus Fund) ....................................................... $ 189,203 $ -- $ 67,950
Interest income ..................................................... 264,095 162,616 374,751
------------ ------------ -----------
Total investment income ......................................... 453,298 162,616 442,701
------------ ------------ -----------
EXPENSES:
Investment advisory fees ............................................ 220,709 34,964 1,368,724
Distribution expenses - Investor Class .............................. -- -- 365,320
Distribution expenses - Advisor Class ............................... 2,542 1,550 6,210
Distribution expense - Broker Class ................................. 21 -- 3
Administration fees ................................................. 30,693 3,940 188,522
Shareholder servicing fees .......................................... 26,371 4,111 152,601
Fund accounting fees ................................................ 26,219 3,459 161,004
Custody fees ........................................................ 11,793 2,007 72,508
Federal and state registration ...................................... 70,130 31,252 37,693
Professional fees ................................................... 21,746 3,573 135,987
Amortization of organizational expenses ............................. 3,129 3,129 3,129
Reports to shareholders ............................................. 10,500 1,405 65,215
Directors' fees and expenses ........................................ 1,852 248 11,504
Other ............................................................... 2,533 339 19,124
Advisor expense waiver recovery (Note 5) ............................ 15,742 -- 154,869
------------ ------------ -----------
Total expenses before waiver and reimbursement of
expenses and dividends on short positions ..................... 443,980 89,977 2,742,413
Less: Waiver of expenses and reimbursement from Advisor ......... -- (25,542) (1,061)
------------ ------------ -----------
Net expenses before dividends on short positions ................ 443,980 64,435 2,741,352
Dividends on short positions .................................... -- 16,727 --
------------ ------------ -----------
Total expenses .................................................. 443,980 81,162 2,741,352
------------ ------------ -----------
NET INVESTMENT INCOME (LOSS) ........................................ 9,318 81,454 (2,298,651)
------------ ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ...................................................... (4,117,733) (1,642) 989,940
Short positions .................................................. -- (199,047) --
Written option contracts expired or closed ....................... -- 24,732 6,821,981
Futures .......................................................... (1,090,237) (1,611,566) (7,879,138)
------------ ------------ -----------
(5,207,970) (1,787,523) (67,217)
------------ ------------ -----------
Change in unrealized appreciation (depreciation) on:
Investments ...................................................... 1,605,202 (7,187) 62,410,855
Short positions .................................................. -- (51,221) --
Written options .................................................. -- 175 (314,119)
Futures .......................................................... 675,295 (8,132) 1,806,694
------------ ------------ -----------
2,280,497 (66,365) 63,903,430
------------ ------------ -----------
Net realized and unrealized gain (loss) on investments ........ (2,927,473) (1,853,888) 63,836,213
------------ ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ....................................................... $ (2,918,155) $ (1,772,434) $61,537,562
============ ============ ===========
</TABLE>
See notes to the financial statements.
39
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
PERIOD ENDED AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POTOMAC FUNDS SMALL CAP/SHORT
FUND
OTC/SHORT SMALL CAP PLUS DECEMBER 21, 1999(1)
FUND FUND TO AUGUST 31, 2000
-------------- -------------- --------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ...................................................... $ 20 $ 264,197 $ --
Interest income ...................................................... 292,876 790,807 260,659
------------- ------------ -----------
Total investment income ........................................ 292,896 1,055,004 260,659
------------- ------------ -----------
EXPENSES:
Investment advisory fees ............................................. 71,297 259,623 45,510
Distribution expenses - Investor Class ............................... -- 43,857 14,773
Distribution expenses - Advisor Class ................................ 871 8,088 --
Distribution expense - Broker Class .................................. -- 24,057 --
Administration fees .................................................. 8,243 35,458 5,521
Shareholder servicing fees ........................................... 7,908 29,146 4,409
Fund accounting fees ................................................. 7,056 30,509 4,366
Custody fees ......................................................... 3,640 13,605 1,777
Federal and state registration ....................................... 22,806 57,775 1,756
Professional fees .................................................... 6,189 26,382 2,731
Amortization of organizational expenses .............................. 3,129 -- --
Reports to shareholders .............................................. 2,833 12,369 1,821
Directors' fees and expenses ......................................... 500 2,182 321
Other ................................................................ 1,522 2,983 452
Advisor expense waiver recovery (Note 5) ............................. -- 861 --
------------- ------------ -----------
Total expenses before waiver and reimbursement of
expenses and dividends on short positions .................... 135,994 546,895 83,437
Less: Waiver of expenses and reimbursement from Advisor ........ (4,411) (2,305) (13,344)
------------- ------------ -----------
Net expenses before dividends on short positions ............... 131,583 544,590 70,093
Dividends on short positions ................................... -- -- --
------------- ------------ -----------
Total expenses ................................................. 131,583 544,590 70,093
------------- ------------ -----------
NET INVESTMENT INCOME (LOSS) ......................................... 161,313 510,414 190,566
------------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ....................................................... (135) (6,337,992) (552,084)
Short positions ................................................... (9,459,287) 3,701 (1,882)
Written option contracts expired or closed ........................ -- 489,226 (406,403)
Futures ........................................................... (1,493,927) 61,103 (595,374)
------------- ------------ -----------
(10,953,349) (5,783,962) (1,555,743)
------------- ------------ -----------
Change in unrealized appreciation (depreciation) on:
Investments ....................................................... (510) 984,364 (5)
Short positions ................................................... 182,595 -- --
Written options ................................................... -- 52,635 --
Futures ........................................................... 22,136 946,565 --
------------- ------------ -----------
204,221 1,983,564 (5)
------------- ------------ -----------
Net realized and unrealized gain (loss) on investments ......... (10,749,128) (3,800,398) (1,555,748)
------------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ........................................................ $ (10,587,815) $ (3,289,984) $(1,365,182)
============= ============ ===========
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
See notes to the financial statements.
40
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
PERIOD ENDED AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POTOMAC FUNDS INTERNET PLUS INTERNET/SHORT DOW 30 PLUS U.S.
FUND FUND FUND GOVERNMENT
DECEMBER 2, 1999(1) DECEMBER 21, 1999(1) DECEMBER 2, 1999(1) MONEY MARKET
TO AUGUST 31, 2000 TO AUGUST 31, 2000 TO AUGUST 31, 2000 FUND
------------------ ------------------- ------------------ --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income ............................................ $ -- $ -- $ 126,925 $ --
Interest income ............................................ 14,047 38,079 25,114 3,015,763
------------- ----------- ----------- ----------
Total investment income .............................. 14,047 38,079 152,039 3,015,763
------------- ----------- ----------- ----------
EXPENSES:
Investment advisory fees ................................... 68,191 10,385 67,941 252,087
Distribution expenses - Investor Class ..................... -- 2,026 -- --
Distribution expenses - Advisor Class ...................... 9,908 -- 34 18,019
Distribution expense - Broker Class ........................ -- -- 2 7,944
Administration fees ........................................ 9,446 1,262 9,983 53,466
Shareholder servicing fees ................................. 6,776 1,002 6,783 45,949
Fund accounting fees ....................................... 8,153 1,019 8,299 45,867
Custody fees ............................................... 3,274 413 3,172 21,422
Federal and state registration ............................. 15,861 1,646 16,660 32,390
Licensing fees ............................................. 15,068 -- 14,932 --
Professional fees .......................................... 6,642 682 5,016 37,413
Amortization of organizational expenses .................... -- -- -- 3,129
Reports to shareholders .................................... 3,262 417 3,238 17,988
Directors' fees and expenses ............................... 575 74 571 3,173
Other ...................................................... 787 113 874 4,338
------------- ----------- ----------- ----------
Total expenses before waiver and reimbursement of
expenses and dividends on short positions .......... 147,943 19,039 137,505 543,185
Less: Waiver of expenses and reimbursement from
Advisor ............................................ (1,652) (3,355) (1,588) (13,047)
------------- ----------- ----------- ----------
Net expenses before dividends on short positions ..... 146,291 15,684 135,917 530,138
Dividends on short positions ......................... -- 195,863 -- --
------------- ----------- ----------- ----------
Total expenses ....................................... 146,291 211,547 135,917 530,138
------------- ----------- ----------- ----------
NET INVESTMENT INCOME (LOSS) ............................... (132,244) (173,468) 16,122 2,485,625
------------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ............................................. (3,909,444) (460,627) (3,106,635) --
Short positions ......................................... -- (1,785,119) (4,823) --
Written option contracts expired or closed .............. 42,400 7,626 -- --
Futures ................................................. 47,501 (206,886) (725,861) --
------------- ----------- ----------- ----------
(3,819,543) (2,445,006) (3,837,319) --
------------- ----------- ----------- ----------
Change in unrealized appreciation (depreciation) on:
Investments ............................................. 2,229,482 (17,441) 1,011,254 --
Short positions ......................................... -- 2,807 -- --
Written Options ......................................... 60,998 (150) -- --
Futures ................................................. -- -- 13,898 --
------------- ----------- ----------- ----------
2,290,480 (14,784) 1,025,152 --
------------- ----------- ----------- ----------
Net realized and unrealized gain (loss) on
investments ........................................ (1,529,063) (2,459,790) (2,812,167) --
------------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .............................................. $ (1,661,307) $(2,633,258) $(2,796,045) $2,485,625
============= =========== =========== ==========
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
See notes to the financial statements.
41
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POTOMAC FUNDS U.S. PLUS FUND U.S./SHORT FUND
--------------------------------- --------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999
--------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................................. $ 9,318 $ 567,359 $ 81,454 $ 155,658
Net realized gain (loss) on investments sold, securities
sold short, written option contracts expired or closed
and futures ............................................... (5,207,970) 4,301,103 (1,787,523) (1,853,391)
Change in unrealized appreciation (depreciation)
on investments, short positions, written options
and futures ............................................... 2,280,497 (323,394) (66,365) (889,693)
-------------- -------------- -------------- -------------
Net increase (decrease) in net assets
resulting from operations ............................ (2,918,155) 4,545,068 (1,772,434) (2,587,426)
-------------- -------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS - INVESTOR CLASS:
Net investment income ........................................ -- --
Net realized gains ........................................... (189,978) (26,273)
-------------- -------------
Total distributions .................................... (189,978) (26,273)
-------------- -------------
CAPITAL SHARE TRANSACTIONS - INVESTOR CLASS:
Proceeds from shares sold .................................... 924,006,934 432,183,904 149,560,734 288,090,128
Proceeds from shares issued to holders
in reinvestment of dividends .............................. -- 187,759 -- 25,407
Cost of shares redeemed ...................................... (882,385,805) (420,720,881) (150,381,382) (288,877,637)
-------------- -------------- -------------- -------------
Net increase (decrease) in net assets resulting
from capital share transactions ...................... 41,621,129 11,650,782 (820,648) (762,102)
-------------- -------------- -------------- -------------
CAPITAL SHARE TRANSACTIONS - ADVISOR CLASS:
Proceeds from shares sold .................................... 29,968,353 21,469,413
Proceeds from shares issued to holders
in reinvestment of dividends .............................. -- --
Cost of shares redeemed ...................................... (29,761,027) (21,305,043)
-------------- --------------
Net increase (decrease) in net assets resulting
from capital share transactions ...................... 207,326 164,370
-------------- --------------
CAPITAL SHARE TRANSACTIONS - BROKER CLASS:
Proceeds from shares sold .................................... 82,499
Proceeds from shares issued to holders
in reinvestment of dividends .............................. --
Cost of shares redeemed ...................................... --
--------------
Net increase (decrease) in net assets resulting
from capital share transactions ...................... 82,499
--------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ...................... 38,992,799 16,005,872 (2,428,712) (3,375,801)
-------------- -------------- -------------- -------------
NET ASSETS:
Beginning of period .......................................... 16,472,869 466,997 4,392,851 7,768,652
-------------- -------------- -------------- -------------
End of period (including undistributed net
investment income of $0, $0,
$83,707 and $5,552, respectively) ......................... $ 55,465,668 $ 16,472,869 $ 1,964,139 $ 4,392,851
============== ============== ============== =============
</TABLE>
See notes to the financial statements.
42
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POTOMAC FUNDS
OTC PLUS FUND OTC/SHORT FUND
--------------------------------- --------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ................................. $ (2,298,651) $ (672,073) $ 161,313 $ 112,043
Net realized gain (loss) on investments sold, securities
sold short, written option contracts expired or closed
and futures ............................................... (67,217) 900,691 (10,953,349) (4,304,088)
Change in unrealized appreciation (depreciation)
on investments, short positions, written options
and futures ............................................... 63,903,430 25,297,230 204,221 (3,267,110)
-------------- ------------- -------------- --------------
Net increase (decrease) in net
assets resulting from operations ..................... 61,537,562 25,525,848 (10,587,815) (7,459,155)
-------------- ------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS - INVESTOR CLASS:
Net investment income ........................................ -- -- (33,575) --
Net realized gains ........................................... (155,985) (171,078) -- (7,355)
-------------- ------------- -------------- --------------
Total distributions ....................................... (155,985) (171,078) (33,575) (7,355)
-------------- ------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS - INVESTOR CLASS:
Proceeds from shares sold .................................... 1,027,825,029 754,327,170 201,612,448 269,273,210
Proceeds from shares issued to holders
in reinvestment of dividends .............................. 152,518 161,537 31,408 6,530
Cost of shares redeemed ...................................... (982,187,829) (710,841,636) (199,351,962) (270,118,317)
-------------- ------------- -------------- --------------
Net increase (decrease) in net assets resulting
from capital share transactions ...................... 45,789,718 43,647,071 2,291,894 (838,577)
-------------- ------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS - ADVISOR CLASS:
Proceeds from shares sold .................................... 48,379,447 17,480,896
Proceeds from shares issued to holders
in reinvestment of dividends .............................. -- --
Cost of shares redeemed ...................................... (45,994,741) (16,870,446)
-------------- --------------
Net increase (decrease) in net assets resulting
from capital share transactions ...................... 2,384,706 610,450
-------------- --------------
CAPITAL SHARE TRANSACTIONS - BROKER CLASS:
Proceeds from shares sold .................................... 10,699
Proceeds from shares issued to holders
in reinvestment of dividends .............................. --
Cost of shares redeemed ...................................... --
--------------
Net increase (decrease) in net assets resulting
from capital share transactions ...................... 10,699
--------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ...................... 109,566,700 69,001,841 (7,719,046) (8,305,087)
-------------- ------------- -------------- --------------
NET ASSETS:
Beginning of period .......................................... 76,682,387 7,680,546 10,863,451 19,168,538
-------------- ------------- -------------- --------------
End of period (including undistributed net
investment income of $0, $0,
$130,831 and $0, respectively) ............................ $ 186,249,087 $ 76,682,387 $ 3,144,405 $ 10,863,451
============== ============= ============== ==============
</TABLE>
See notes to the financial statements.
43
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POTOMAC FUNDS
SMALL CAP/SHORT INTERNET PLUS
SMALL CAP PLUS FUND FUND FUND
----------------------------------- ------------------- -------------------
YEAR ENDED FEBRUARY 22,1999(1) DECEMBER 21, 1999(1) DECEMBER 2, 1999(1)
AUGUST 31, 2000 TO AUGUST 31, 1999 TO AUGUST 31, 2000 TO AUGUST 31, 2000
--------------- ------------------- -------------------- -------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ......................... $ 510,414 $ 860,756 $ 190,566 $ (132,244)
Net realized gain (loss) on investments sold,
securities sold short, written option
contracts expired or closed and futures ........... (5,783,962) (1,858,156) (1,555,743) (3,819,543)
Change in unrealized appreciation
(depreciation) on investments, short
positions, written options and futures ............ 1,983,564 (154,145) (5) 2,290,480
--------------- -------------- --------------- -------------
Net increase (decrease) in net
assets resulting from operations ............. (3,289,984) (1,151,545) (1,365,182) (1,661,307)
--------------- -------------- --------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS - INVESTOR CLASS:
Net investment income ................................ (314,208)
Net realized gains ................................... --
---------------
Total distributions ............................ (314,208)
---------------
CAPITAL SHARE TRANSACTIONS - INVESTOR CLASS:
Proceeds from shares sold ............................ 1,320,815,664 561,864,955 339,075,919 305,902,586
Proceeds from shares issued to holders
in reinvestment of dividends ...................... 310,224 -- -- --
Cost of shares redeemed .............................. (1,290,715,173) (553,679,788) (337,673,768) (296,660,685)
--------------- -------------- --------------- -------------
Net increase (decrease) in net assets resulting
from capital share transactions .............. 30,410,715 8,185,167 1,402,151 9,241,901
--------------- -------------- --------------- -------------
CAPITAL SHARE TRANSACTIONS - ADVISOR CLASS:
Proceeds from shares sold ............................ 39,297,059 71,544,819
Proceeds from shares issued to holders
in reinvestment of dividends ...................... -- --
Cost of shares redeemed .............................. (36,357,896) (65,688,130)
--------------- -------------
Net increase (decrease) in net assets resulting
from capital share transactions .............. 2,939,163 5,856,689
--------------- -------------
CAPITAL SHARE TRANSACTIONS - BROKER CLASS:
Proceeds from shares sold ............................ 78,100,405
Proceeds from shares issued to holders
in reinvestment of dividends ...................... --
Cost of shares redeemed .............................. (65,978,375)
---------------
Net increase (decrease) in net assets resulting
from capital share transactions .............. 12,122,030
---------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .............. 41,867,716 7,033,622 36,969 13,437,283
--------------- -------------- --------------- -------------
NET ASSETS:
Beginning of period .................................. 7,033,622 -- -- --
--------------- -------------- --------------- -------------
End of period (including undistributed net
investment income of $0, $27,597, $190,579
and $0, respectively) ............................. $ 48,901,338 $ 7,033,622 $ 36,969 $ 13,437,283
=============== ============== =============== =============
</TABLE>
(1) COMMENCEMENT OF OPERATIONS
See notes to the financial statements.
44
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POTOMAC FUNDS
INTERNET/SHORT DOW 30 PLUS U.S. GOVERNMENT MONEY
FUND FUND MARKET FUND
-------------------- ------------------ ----------------------------
DECEMBER 21, 1999(1) DECEMBER 2, 1999(1) YEAR ENDED YEAR ENDED
TO AUGUST 31, TO AUGUST 31, AUGUST 31, AUGUST 31,
2000 2000 2000 1999
-------------------- ------------------ ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ............................... $ (173,468) $ 16,122 $ 2,485,625 $ 945,821
Net realized gain (loss) on investments sold, securities
sold short, written option contracts expired or closed
and futures ............................................. (2,445,006) (3,837,319) -- --
Change in unrealized appreciation (depreciation) on
investments, short positions, written options
and futures ............................................ (14,784) 1,025,152 -- --
-------------- ------------- -------------- ------------
Net increase (decrease) in net
assets resulting from operations ................... (2,633,258) (2,796,045) 2,485,625 945,821
-------------- ------------- -------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS - INVESTOR CLASS:
Net investment income ...................................... (2,374,800) (945,821)
Net realized gains ......................................... -- --
-------------- ------------
Total distributions .................................. (2,374,800) (945,821)
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS - ADVISOR CLASS:
Net investment income ...................................... (76,288)
Net realized gains ......................................... --
--------------
Total distributions .................................. (76,288)
--------------
DISTRIBUTIONS TO SHAREHOLDERS - BROKER CLASS:
Net investment income ...................................... (34,537)
Net realized gains ......................................... --
--------------
Total distributions .................................. (34,537)
--------------
CAPITAL SHARE TRANSACTIONS - INVESTOR CLASS:
Proceeds from shares sold .................................. 75,167,346 285,899,162 2,422,593,640 849,108,149
Proceeds from shares issued to holders
in reinvestment of dividends ............................ -- -- 1,505,343 729,062
Cost of shares redeemed .................................... (71,553,554) (264,593,075) (2,457,919,572) (808,984,862)
-------------- ------------- -------------- ------------
Net increase (decrease) in net assets resulting
from capital share transactions .................... 3,613,792 21,306,087 (33,820,589) 40,852,349
-------------- ------------- -------------- ------------
CAPITAL SHARE TRANSACTIONS - ADVISOR CLASS:
Proceeds from shares sold .................................. 224,048 158,560,076
Proceeds from shares issued to holders
in reinvestment of dividends ............................ -- 42,209
Cost of shares redeemed .................................... (138,394) (157,923,367)
------------- --------------
Net increase (decrease) in net assets resulting
from capital share transactions .................... 85,654 678,918
------------- --------------
CAPITAL SHARE TRANSACTIONS - BROKER CLASS:
Proceeds from shares sold .................................. 5,000 79,208,018
Proceeds from shares issued to holders
in reinvestment of dividends ............................ -- 24,827
Cost of shares redeemed .................................... -- (78,522,388)
------------- --------------
Net increase (decrease) in net assets resulting
from capital share transactions .................... 5,000 710,457
------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .................... 980,534 18,600,696 (32,431,214) 40,852,349
-------------- ------------- -------------- ------------
NET ASSETS:
Beginning of period ........................................ -- -- 50,222,733 9,370,384
-------------- ------------- -------------- ------------
End of period (including undistributed net
investment income of $0, $0,
$6,445 and $4,192), respectively) ....................... $ 980,534 $ 18,600,696 $ 17,791,519 $ 50,222,733
============== ============= ============== ============
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
See notes to the financial statements.
45
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
U.S. PLUS FUND
---------------------------------------------------------
INVESTOR CLASS
---------------------------------------------------------
YEAR ENDED YEAR ENDED OCTOBER 20, 1997(1)
AUGUST 31, 2000 AUGUST 31, 1999 TO AUGUST 31, 1998
----------------- ----------------- --------------------
<S> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD .................... $ 14.56 $ 9.76 $ 10.00
----------- ----------- ----------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)(4) ........... 0.01 0.31 0.36
Net realized and unrealized gain
(loss) on investments(6) ............... 2.43 4.59 (0.58)
----------- ----------- ----------
Total from investment operations .... 2.44 4.90 (0.22)
----------- ----------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... -- -- (0.02)
Distributions from realized gains ......... -- (0.10) --
----------- ----------- ----------
Total distributions ................. -- (0.10) (0.02)
----------- ----------- ----------
NET ASSET VALUE, END OF PERIOD ............ $ 17.00 $ 14.56 $ 9.76
=========== =========== ==========
TOTAL RETURN .............................. 16.76% 50.38% (2.23%)(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period ................. $55,311,201 $16,472,869 $466,997
Ratio of net expenses to
average net assets:
Before expense reimbursement ........... 1.50%(7) 1.52% 2.52%(3)
After expense reimbursement ............ 1.50%(7) 1.50% 1.50%(3)
Ratio of net investment income
(loss) to average net assets:
Before expense reimbursement ........... 0.05%(7) 2.32% 2.68%(3)
After expense reimbursement ............ 0.05%(7) 2.34% 3.70%(3)
Portfolio turnover rate5 .................. 2,010% 0% 0%
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
U.S. PLUS FUND
------------------------------------------
ADVISOR CLASS BROKER CLASS
MARCH 22, 2000(1) AUGUST 22, 2000(1)
TO AUGUST 31, 2000 TO AUGUST 31, 2000
-------------------- --------------------
<S> <C> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD .................... $ 16.97 $ 16.69
------- -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)(4) ........... (0.11) (0.01)
Net realized and unrealized gain
(loss) on investments(6) ............... 0.09 0.27
------- -------
Total from investment operations .... (0.02) 0.26
------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... -- --
Distributions from realized gains ......... -- --
------- -------
Total distributions ................. -- --
------- -------
NET ASSET VALUE, END OF PERIOD ............ $ 16.95 $ 16.95
======= =======
TOTAL RETURN .............................. (0.12%)(2) 1.56%(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period ................. $70,718 $83,749
Ratio of net expenses to
average net assets:
Before expense reimbursement ........... 2.50%(3)(7) 2.50%(3)(7)
After expense reimbursement ............ 2.50%(3)(7) 2.50%(3)(7)
Ratio of net investment income
(loss) to average net assets:
Before expense reimbursement ........... (1.64%)(3)(7) (2.47%)(3)(7)
After expense reimbursement ............ (1.64%)(3)(7) (2.47%)(3)(7)
Portfolio turnover rate(5) ................ 2,010% 2,010%
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
(2) NOT ANNUALIZED.
(3) ANNUALIZED.
(4) NET INVESTMENT INCOME (LOSS) PER SHARE REPRESENTS NET INVESTMENT INCOME
(LOSS) DIVIDED BY THE DAILY AVERAGE SHARES OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD.
(5) PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. INVESTMENTS IN OPTIONS,
FUTURES CONTRACTS AND REPURCHASE AGREEMENTS ARE DEEMED SHORT-TERM
SECURITIES. RATIO IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING BETWEEN THE CLASSES OF SHARES ISSUED.
(6) THE AMOUNTS SHOWN MAY NOT CORRELATE WITH AGGREGATE GAINS AND LOSSES OF
PORTFOLIO SECURITIES DUE TO THE TIMING OF SUBSCRIPTIONS AND REDEMPTIONS OF
FUND SHARES.
(7) RATIO INCLUDES ADVISOR EXPENSE RECOVERY OF 0.05%.
See notes to the financial statements.
46
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
U.S./SHORT FUND(7)
------------------------------------------------------------------
INVESTOR CLASS
------------------------------------------------------------------
YEAR ENDED YEAR ENDED NOVEMBER 7, 1997(1)
AUGUST 31, 2000 AUGUST 31, 1999 TO AUGUST 31, 1998
----------------- ----------------- --------------------
<S> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD ................................. $ 34.39 $ 47.30 $ 50.00
---------- ---------- ----------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)(4) ........................ 0.70(10) 1.05 1.15
Net realized and unrealized gain (loss)
on investments(6) ................................... (5.76) (13.91) (3.85)
---------- ---------- ----------
Total from investment operations ................. (5.06) (12.86) (2.70)
---------- ---------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ................... -- -- --
Distributions from realized gains ...................... -- (0.05) --
---------- ---------- ----------
Total distributions .............................. -- (0.05) --
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD ......................... $ 29.33 $ 34.39 $ 47.30
========== ========== ==========
TOTAL RETURN ........................................... (14.71%) (26.77%) (5.40%)(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period .............................. $1,964,139 $4,392,851 $7,768,652
Ratio of net expenses to average net assets:
Before expense reimbursement ........................ 2.28% 1.90% 5.29%(3)
After expense reimbursement ......................... 1.62%(8) 1.64% 1.57%(3)
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement ........................ 1.46% 2.23% (0.46%)(3)
After expense reimbursement ......................... 2.12%(9) 2.49% 3.26%(3)
Portfolio turnover rate(5) ............................. 781% 0% 0%
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
(2) NOT ANNUALIZED.
(3) ANNUALIZED.
(4) NET INVESTMENT INCOME (LOSS) PER SHARE REPRESENTS NET INVESTMENT INCOME
(LOSS) DIVIDED BY THE DAILY AVERAGE SHARES OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD.
(5) PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. INVESTMENTS IN OPTIONS,
FUTURES CONTRACTS AND REPURCHASE AGREEMENTS ARE DEEMED SHORT-TERM
SECURITIES.
(6) THE AMOUNTS SHOWN MAY NOT CORRELATE WITH AGGREGATE GAINS AND LOSSES OF
PORTFOLIO SECURITIES DUE TO THE TIMING OF SUBSCRIPTIONS AND REDEMPTIONS OF
FUND SHARES.
(7) THE PER SHARE DATA REFLECTS A 1 FOR 5 REVERSE STOCK SPLIT WHICH OCCURRED ON
JUNE 7, 1999.
(8) THE OPERATING EXPENSE RATIO EXCLUDED DIVIDENDS ON SHORT POSITIONS. THE
RATIO INCLUDING DIVIDENDS ON SHORT POSITIONS FOR THE YEAR ENDED AUGUST 31,
2000 WAS 2.05%.
(9) THE NET INVESTMENT INCOME (LOSS) RATIO INCLUDED DIVIDENDS ON SHORT
POSITIONS. THE RATIO EXCLUDING DIVIDENDS ON SHORT POSITIONS FOR THE YEAR
ENDED AUGUST 31, 2000 WAS 2.55%.
(10) NET INVESTMENT INCOME BEFORE DIVIDENDS ON SHORT POSITIONS FOR THE YEAR
ENDED AUGUST 31, 2000 WAS $0.84.
See notes to the financial statements.
47
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
OTC PLUS FUND
---------------------------------------------------------
INVESTOR CLASS
---------------------------------------------------------
YEAR ENDED YEAR ENDED OCTOBER 20, 1997(1)
AUGUST 31, 2000 AUGUST 31, 1999 TO AUGUST 31, 1998
----------------- ----------------- --------------------
<S> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD .................... $ 24.60 $ 10.41 $ 10.00
------------ ----------- ----------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)(4) ........... (0.49) (0.23) (0.11)
Net realized and unrealized gain (loss)
on investments(6) ...................... 20.05 14.48 0.52
------------ ----------- ----------
Total from investment operations .... 19.56 14.25 0.41
------------ ----------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... -- -- --
Distributions from realized gains ......... (0.03) (0.06) --
------------ ----------- ----------
Total distributions ................. (0.03) (0.06) --
------------ ----------- ----------
NET ASSET VALUE, END OF PERIOD ............ $ 44.13 $ 24.60 $ 10.41
============ =========== ==========
TOTAL RETURN .............................. 79.54% 137.18% 4.10%(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period ................. $184,751,134 $76,682,387 $7,680,546
Ratio of net expenses to
average net assets:
Before expense reimbursement ........... 1.50%(7) 1.50% 3.21%(3)
After expense reimbursement ............ 1.50%(7) 1.50% 1.50%(3)
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement ........... (1.26%)(7) (1.16%) (2.84%)(3)
After expense reimbursement ............ (1.26%)(7) (1.16%) (1.13%)(3)
Portfolio turnover rate(5) ................ 378% 1,000% 2,325%
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
OTC PLUS FUND
------------------------------------------
ADVISOR CLASS BROKER CLASS
FEBRURARY 24, 2000(1) AUGUST 22, 2000(1)
TO AUGUST 31, 2000 TO AUGUST 31, 2000
--------------------- -------------------
<S> <C> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD .................... $ 47.64 $ 40.81
---------- -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)(4) ........... (0.36) (0.02)
Net realized and unrealized gain (loss)
on investments(6) ...................... (3.21) 3.28
---------- -------
Total from investment operations .... (3.57) 3.26
---------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ...... -- --
Distributions from realized gains ......... -- --
---------- -------
Total distributions ................. -- --
---------- -------
NET ASSET VALUE, END OF PERIOD ............ $ 44.07 $ 44.07
========== =======
TOTAL RETURN .............................. (7.49%)(2) 7.99%(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period ................. $1,486,399 $11,554
Ratio of net expenses to
average net assets:
Before expense reimbursement ........... 2.30%(3)(7) 2.30%(3)(7)
After expense reimbursement ............ 2.13%(3)(7) 2.00%(3)(7)
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement ........... (2.01%)(3)(7) (2.05%)(3)(7)
After expense reimbursement ............ (1.84%)(3)(7) (1.75%)(3)(7)
Portfolio turnover rate(5) ................ 378% 378%
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
(2) NOT ANNUALIZED.
(3) ANNUALIZED.
(4) NET INVESTMENT INCOME (LOSS) PER SHARE REPRESENTS NET INVESTMENT INCOME
(LOSS) DIVIDED BY THE DAILY AVERAGE SHARES OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD.
(5) PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. INVESTMENTS IN
OPTIONS, FUTURES CONTRACTS AND REPURCHASE AGREEMENTS ARE DEEMED SHORT-TERM
SECURITIES. RATIO IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING BETWEEN THE CLASSES OF SHARES ISSUED.
(6) THE AMOUNTS SHOWN MAY NOT CORRELATE WITH AGGREGATE GAINS AND LOSSES OF
PORTFOLIO SECURITIES DUE TO THE TIMING OF SUBSCRIPTIONS AND REDEMPTIONS OF
FUND SHARES.
(7) RATIO INCLUDES ADVISOR EXPENSE RECOVERY OF 0.08%.
See notes to the financial statements.
48
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
OTC/SHORT FUND(10)
---------------------------------------------------------
INVESTOR CLASS
---------------------------------------------------------
YEAR ENDED YEAR ENDED OCTOBER 16, 1997(1)
AUGUST 31, 2000 AUGUST 31, 1999 TO AUGUST 31, 1998
----------------- ----------------- --------------------
<S> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD .......................................... $ 17.06 $ 41.90 $ 50.00
---------- ----------- -----------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)(4) ................................. 0.23 0.399 0.459
Net realized and unrealized gain (loss) on investments(6) ....... (8.90) (25.22) (8.55)
---------- ----------- -----------
Total from investment operations .......................... (8.67) (24.83) (8.10)
---------- ----------- -----------
LESS DISTRIBUTIONS:
Dividends from net investment income ............................ (0.08) -- --
Distributions from realized gains ............................... -- (0.01) --
---------- ----------- -----------
Total distributions ....................................... (0.08) (0.01) --
---------- ----------- -----------
NET ASSET VALUE, END OF PERIOD .................................. $ 8.31 $ 17.06 $ 41.90
========== =========== ===========
TOTAL RETURN .................................................... (50.96%) (59.25%) (16.20%)(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period ....................................... $3,144,405 $10,863,451 $19,168,538
Ratio of net expenses to average net assets:
Before expense reimbursement .................................. 1.71% 1.87% 3.70%(3)
After expense reimbursement .................................. 1.65% 1.65%(7) 1.64%(3)(7)
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement ................................. 1.98% 1.47% (0.74%)(3)
After expense reimbursement .................................. 2.04% 1.69%(8) 1.32%(3)(8)
Portfolio turnover rate(5) ...................................... 1,225% 3,049% 3,346%
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
(2) NOT ANNUALIZED.
(3) ANNUALIZED.
(4) NET INVESTMENT INCOME (LOSS) PER SHARE REPRESENTS NET INVESTMENT INCOME
(LOSS) DIVIDED BY THE DAILY AVERAGE SHARES OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD.
(5) PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. INVESTMENTS IN
OPTIONS, FUTURES CONTRACTS AND REPURCHASE AGREEMENTS ARE DEEMED SHORT-TERM
SECURITIES.
(6) THE AMOUNTS SHOWN MAY NOT CORRELATE WITH AGGREGATE GAINS AND LOSSES OF
PORTFOLIO SECURITIES DUE TO THE TIMING OF SUBSCRIPTIONS AND REDEMPTIONS OF
FUND SHARES.
(7) THE OPERATING EXPENSE RATIO EXCLUDED DIVIDENDS ON SHORT POSITIONS. THE
RATIO INCLUDING DIVIDENDS ON SHORT POSITIONS FOR THE YEAR ENDED AUGUST 31,
1999 AND THE PERIOD ENDED AUGUST 31, 1998 WAS 1.74% AND 1.78%,
RESPECTIVELY.
(8) THE NET INVESTMENT INCOME RATIO INCLUDED DIVIDENDS ON SHORT POSITIONS. THE
RATIO EXCLUDING DIVIDENDS ON SHORT POSITIONS FOR THE YEAR ENDED AUGUST 31,
1999 AND THE PERIOD ENDED AUGUST 31, 1998 WAS 1.78% AND 1.46%,
RESPECTIVELY.
(9) NET INVESTMENT INCOME BEFORE DIVIDENDS ON SHORT POSITIONS FOR THE YEAR
ENDED AUGUST 31, 1999 AND THE PERIOD ENDED AUGUST 31, 1998 WAS $0.41 AND
$0.50, RESPECTIVELY.
(10) THE PER SHARE DATA REFLECTS A 1 FOR 5 REVERSE STOCK SPLIT WHICH OCCURRED
ON JUNE 7, 1999.
See notes to the financial statements.
49
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
SMALL CAP PLUS FUND
-----------------------------------------------------------------------------------
INVESTOR CLASS
--------------------------------------- ADVISOR CLASS BROKER CLASS
YEAR ENDED FEBRUARY 22, 1999(1) FEBRUARY 9, 2000(1) MARCH 28, 2000(1)
AUGUST 31, 2000 TO AUGUST 31, 1999 TO AUGUST 31, 2000 TO AUGUST 31, 2000
----------------- -------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD ..................... $ 11.10 $ 10.00 $ 14.26 $ 15.06
----------- ---------- ---------- -----------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)(4) ............ 0.19 0.18 0.02 0.04
Net realized and unrealized gain (loss)
on investments(6) ....................... 1.42 0.92 (1.72) (2.53)
----------- ---------- ---------- -----------
Total from investment operations ..... 1.61 1.10 (1.70) (2.49)
----------- ---------- ---------- -----------
LESS DISTRIBUTIONS:
Dividends from net investment income ....... (0.13) -- -- --
Distributions from realized gains .......... -- -- -- --
----------- ---------- ---------- -----------
Total distributions .................. (0.13) -- -- --
----------- ---------- ---------- -----------
NET ASSET VALUE, END OF PERIOD ............. $ 12.58 $ 11.10 $ 12.56 $ 12.57
=========== ========== ========== ===========
TOTAL RETURN ............................... 14.50% 11.00%(2) (11.92%)(2) (16.53%)(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period .................. $34,065,099 $7,033,622 $2,801,317 $12,034,922
Ratio of net expenses to average
net assets:
Before expense reimbursement ............ 1.50%(7) 1.50%(3) 2.36%(3)(7) 2.36%(3)(7)
After expense reimbursement ............. 1.50%(7) 1.50%(3) 2.35%(3)(7) 2.27%(3)(7)
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement ............ 1.55%(7) 3.03%(3) 0.25%(3)(7) 0.77%(3)(7)
After expense reimbursement ............. 1.55%(7) 3.03%(3) 0.24%(3)(7) 0.86%(3)(7)
Portfolio turnover rate(5) ................. 3,390% 0% 3,390% 3,390%
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
SMALL CAP/SHORT
FUND
INVESTOR CLASS
DECEMBER 21, 1999(1)
TO AUGUST 31, 2000
---------------------
<S> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD ..................... $ 50.00
-------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)(4) ............ 1.39
Net realized and unrealized gain (loss)
on investments(6) ....................... (8.02)
-------
Total from investment operations ..... (6.63)
-------
LESS DISTRIBUTIONS:
Dividends from net investment income ....... --
Distributions from realized gains .......... --
-------
Total distributions .................. --
-------
NET ASSET VALUE, END OF PERIOD ............. $ 43.37
=======
TOTAL RETURN ............................... (13.26%)(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period .................. $36,969
Ratio of net expenses to average
net assets:
Before expense reimbursement ............ 1.65%(3)
After expense reimbursement ............. 1.39%(3)
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement ............ 3.50%(3)
After expense reimbursement ............. 3.76%(3)
Portfolio turnover rate(5) ................. 851%
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
(2) NOT ANNUALIZED.
(3) ANNUALIZED.
(4) NET INVESTMENT INCOME (LOSS) PER SHARE REPRESENTS NET INVESTMENT INCOME
(LOSS) DIVIDED BY THE DAILY AVERAGE SHARES OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD.
(5) PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. INVESTMENTS IN OPTIONS,
FUTURES CONTRACTS AND REPURCHASE AGREEMENTS ARE DEEMED SHORT-TERM
SECURITIES. RATIO IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING BETWEEN THE CLASSES OF SHARES ISSUED.
(6) THE AMOUNTS SHOWN MAY NOT CORRELATE WITH AGGREGATE GAINS AND LOSSES OF
PORTFOLIO SECURITIES DUE TO THE TIMING OF SUBSCRIPTIONS AND REDEMPTIONS OF
FUND SHARES.
(7) RATIO INCLUDES ADVISOR EXPENSE RECOVERY.
See notes to the financial statements.
50
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
INTERNET PLUS FUND INTERNET/SHORT
-------------------------------------------- FUND
INVESTOR CLASS ADVISOR CLASS INVESTOR CLASS
DECEMBER 2, 1999(1) FEBRUARY 24, 2000(1) DECEMBER 21, 1999(1)
TO AUGUST 31, 2000 TO AUGUST 31, 2000 TO AUGUST 31, 2000
-------------------- ---------------------- ----------------------
<S> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD ................................ $ 10.00 $ 14.20 $ 50.00
---------- ---------- --------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)(4) ....................... (0.11) (0.10) (4.45)(9)
Net realized and unrealized gain (loss)
on investments(6) .................................. (1.44) (5.65) (10.15)
---------- ---------- --------
Total from investment operations ................ (1.55) (5.75) (14.60)
---------- ---------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. -- -- --
Distributions from realized gains ..................... -- -- --
---------- ---------- --------
Total distributions ............................. -- -- --
---------- ---------- --------
NET ASSET VALUE, END OF PERIOD ........................ $ 8.45 $ 8.45 $ 35.40
========== ========== ========
TOTAL RETURN .......................................... (15.50%)(2) (40.49%)(2) (29.20%)(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period ............................. $8,126,643 $5,310,640 $980,534
Ratio of net expenses to average net assets:
Before expense reimbursement ....................... 1.52%(3) 2.52%(3) 1.65%(3)
After expense reimbursement ........................ 1.50%(3) 2.50%(3) 1.36%(3)(7)
Ratio of net investment income (loss) to
average net assets:
Before expense reimbursement ....................... (1.37%)(3) (2.34%)(3) (15.32%)(3)
After expense reimbursement ........................ (1.35%)(3) (2.32%)(3) (15.03%)(3)(8)
Portfolio turnover rate(5) ............................ 3,302% 3,302% 6,371%
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
(2) NOT ANNUALIZED.
(3) ANNUALIZED.
(4) NET INVESTMENT INCOME (LOSS) PER SHARE REPRESENTS NET INVESTMENT INCOME
(LOSS) DIVIDED BY THE DAILY AVERAGE SHARES OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD.
(5) PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. INVESTMENTS IN
OPTIONS, FUTURES CONTRACTS AND REPURCHASE AGREEMENTS ARE DEEMED SHORT-TERM
SECURITIES. RATIO IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING BETWEEN THE CLASSES OF SHARES ISSUED.
(6) THE AMOUNTS SHOWN MAY NOT CORRELATE WITH AGGREGATE GAINS AND LOSSES OF
PORTFOLIO SECURITIES DUE TO THE TIMING OF SUBSCRIPTIONS AND REDEMPTIONS OF
FUND SHARES.
(7) THE OPERATING EXPENSE RATIO EXCLUDED DIVIDENDS ON SHORT POSITIONS. THE
RATIO INCLUDING DIVIDENDS ON SHORT POSITIONS FOR THE PERIOD ENDED
AUGUST 31, 2000 WAS 18.33%.
(8) THE NET INVESTMENT INCOME (LOSS) RATIO INCLUDED DIVIDENDS ON SHORT
POSITIONS. THE RATIO EXCLUDING DIVIDENDS ON SHORT POSITIONS FOR THE PERIOD
ENDED AUGUST 31, 2000 WAS 1.94%.
(9) NET INVESTMENT INCOME BEFORE DIVIDENDS ON SHORT POSITIONS FOR THE PERIOD
ENDED AUGUST 31, 2000 WAS $0.57.
See notes to the financial statements.
51
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
DOW 30 PLUS FUND
-------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS BROKER CLASS
DECEMBER 2, 1999(1) JUNE 1, 2000(1) AUGUST 17, 2000(1)
TO AUGUST 31, 2000 TO AUGUST 31, 2000 TO AUGUST 31, 2000
-------------------- -------------------- --------------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value,
beginning of period ................................ $ 10.00 $ 8.72 $ 9.12
----------- ----------- ------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)(4) ....................... 0.01 (0.01) --
Net realized and unrealized gain (loss)
on investments(6) .................................. (0.69) 0.61 0.20
----------- ----------- ------------
Total from investment operations ................ (0.68) 0.60 0.20
----------- ----------- ------------
LESS DISTRIBUTIONS:
Dividends from net investment income .................. -- -- --
Distributions from realized gains ..................... -- -- --
----------- ----------- ------------
Total distributions ............................. -- -- --
----------- ----------- ------------
Net asset value, end of period ........................ $ 9.32 $ 9.32 $ 9.32
=========== =========== ============
Total return .......................................... (6.80%)(2) 6.88%(2) 2.19%(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period ............................. $18,509,233 $ 86,355 $ 5,108
Ratio of net expenses to average net assets:
Before expense reimbursement ....................... 1.52%(3) 2.52%(3) 2.52%(3)
After expense reimbursement ........................ 1.50%(3) 2.50%(3) 2.50%(3)
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement ....................... 0.16%(3) (0.36%)(3) 0.39%(3)
After expense reimbursement ........................ 0.18%(3) (0.34%)(3) 0.41%(3)
Portfolio turnover rate(5) ............................ 1,606% 1,606% 1,606%
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
(2) NOT ANNUALIZED.
(3) ANNUALIZED.
(4) NET INVESTMENT INCOME (LOSS) PER SHARE REPRESENTS NET INVESTMENT INCOME
(LOSS) DIVIDED BY THE DAILY AVERAGE SHARES OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD.
(5) PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. INVESTMENTS IN
OPTIONS, FUTURES CONTRACTS AND REPURCHASE AGREEMENTS ARE DEEMED SHORT-TERM
SECURITIES. RATIO IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING BETWEEN THE CLASSES OF SHARES ISSUED.
(6) THE AMOUNTS SHOWN MAY NOT CORRELATE WITH AGGREGATE GAINS AND LOSSES OF
PORTFOLIO SECURITIES DUE TO THE TIMING OF SUBSCRIPTIONS AND REDEMPTIONS OF
FUND SHARES.
See notes to the financial statements.
52
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
U.S. GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------
INVESTOR CLASS
--------------------------------------------------------
YEAR ENDED YEAR ENDED OCTOBER 20, 1997(1)
AUGUST 31, 2000 AUGUST 31, 1999 TO AUGUST 31, 1998
----------------- ----------------- --------------------
<S> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD ..................... $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)(4) ............ 0.05 0.04 0.04
Net realized and unrealized gain (loss)
on investments(6) ....................... -- -- --
----------- ----------- ----------
Total from investment operations ..... 0.05 0.04 0.04
----------- ----------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ....... (0.05) (0.04) (0.04)
Distributions from realized gains .......... -- -- --
----------- ----------- ----------
Total distributions .................. (0.05) (0.04) (0.04)
----------- ----------- ----------
NET ASSET VALUE, END OF PERIOD ............. $ 1.00 $ 1.00 $ 1.00
=========== =========== ==========
TOTAL RETURN ............................... 5.01% 3.89% 3.89%(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period .................. $16,402,144 $50,222,733 $9,370,384
Ratio of net expenses to average
net assets:
Before expense reimbursement ............ 1.03% 1.20% 3.70%(3)
After expense reimbursement ............. 1.00% 0.99% 1.00%(3)
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement ............ 4.93% 3.68% 1.66%(3)
After expense reimbursement ............. 4.96% 3.89% 4.36%(3)
Portfolio turnover rate(5) ................. N/A N/A N/A
<CAPTION>
For a fund share outstanding throughout the period
POTOMAC FUNDS
U.S. GOVERNMENT MONEY MARKET FUND
-----------------------------------------
ADVISOR CLASS BROKER CLASS
FEBRUARY 2, 2000(1) MARCH 22, 2000(1)
TO AUGUST 31, 2000 TO AUGUST 31, 2000
-------------------- --------------------
<S> <C> <C>
PER SHARE DATA:
NET ASSET VALUE,
BEGINNING OF PERIOD ..................... $ 1.00 $ 1.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)(4) ............ 0.03 0.01
Net realized and unrealized gain (loss)
on investments(6) ....................... -- --
Total from investment operations ..... 0.03 0.01
LESS DISTRIBUTIONS:
Dividends from net investment income ....... (0.03) (0.01)
Distributions from realized gains .......... -- --
Total distributions .................. (0.03) (0.01)
NET ASSET VALUE, END OF PERIOD ............. $ 1.00 $ 1.00
TOTAL RETURN ............................... 2.54%(2) 0.61%(2)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period .................. $678,918 $710,457
Ratio of net expenses to average
net assets:
Before expense reimbursement ............ 2.03%(3) 2.03%(3)
After expense reimbursement ............. 2.00%(3) 2.00%(3)
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement ............ 4.32%(3) 4.37%(3)
After expense reimbursement ............. 4.35%(3) 4.40%(3)
Portfolio turnover rate(5) ................. N/A N/A
</TABLE>
(1) COMMENCEMENT OF OPERATIONS.
(2) NOT ANNUALIZED.
(3) ANNUALIZED.
(4) NET INVESTMENT INCOME (LOSS) PER SHARE REPRESENTS NET INVESTMENT INCOME
(LOSS) DIVIDED BY THE DAILY AVERAGE SHARES OF BENEFICIAL INTEREST
OUTSTANDING THROUGHOUT EACH PERIOD.
(5) PORTFOLIO TURNOVER RATIO IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. INVESTMENTS IN OPTIONS,
FUTURES CONTRACTS AND REPURCHASE AGREEMENTS ARE DEEMED SHORT-TERM
SECURITIES. RATIO IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT
DISTINGUISHING BETWEEN THE CLASSES OF SHARES ISSUED.
(6) THE AMOUNTS SHOWN MAY NOT CORRELATE WITH AGGREGATE GAINS AND LOSSES OF
PORTFOLIO SECURITIES DUE TO THE TIMING OF SUBSCRIPTIONS AND REDEMPTIONS
OF FUND SHARES.
See notes to the financial statements.
53
<PAGE>
--------------------------------------------------------------------------------
POTOMAC FUNDS
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
AUGUST 31, 2000
1. ORGANIZATION
Potomac Funds (the "Trust") was organized as a Massachusetts Business Trust on
June 6, 1997 and is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end management investment company issuing
its shares in series, each series representing a distinct portfolio with its own
investment objective and policies. The series presently operating are the U.S.
Plus Fund, U.S./Short Fund, OTC Plus Fund, OTC/Short Fund, Small Cap Plus Fund,
Small Cap/Short Fund, Internet Plus Fund, Internet/Short Fund, Dow 30 Plus Fund
and the U.S. Government Money Market Fund (each a "Fund" and collectively, the
"Funds"). Each Fund (other than the U.S. Government Money Market Fund) is a
"non-diversified" series of the Trust pursuant to the 1940 Act. The U.S. Plus
Fund, OTC Plus Fund and U.S. Government Money Market Fund commenced operations
on October 20, 1997; the U.S./Short Fund commenced operations on November 7,
1997; the OTC/Short Fund commenced operations on October 16, 1997; the Small Cap
Plus Fund commenced operations on February 22, 1999; the Dow 30 Plus Fund and
the Internet Plus Fund commenced operations on December 2, 1999, and the
Internet/Short Fund and Small Cap/Short Fund commenced operations on December
21, 1999.
The objective of the U.S. Plus Fund is to provide daily investment returns
that correspond to 150% of the performance of the Standard & Poor's 500
Composite Stock Price Index-TM- ("S&P 500 Index"). The objective of the
U.S./Short Fund is to provide daily investment returns that inversely
correlate to the performance of the S&P 500 Index. The objective of the OTC
Plus Fund is to provide daily investment returns that correspond to 125% of
the performance of the Nasdaq 100 Index-TM- ("Nasdaq Index"). The objective
of the OTC/Short Fund is to provide daily investment returns that inversely
correlate to the performance of the Nasdaq Index. The objective of the Small
Cap Plus Fund is to provide daily investment returns that correspond to 125%
of the performance of the Russell 2000-Registered Trademark- Index ("Russell
2000 Index"). The objective of the Small Cap/Short Fund is to provide daily
investment returns that inversely correlate to the performance of the Russell
2000 Index. The objective of the Internet Plus Fund is to provide daily
investment returns that correspond to 125% of the performance of the Dow
Jones Composite Internet Index ("Internet Index"). The objective of the
Internet/Short Fund is to provide daily investment returns that inversely
correlate to the performance of the Internet Index. The objective of the Dow
30 Plus Fund is to provide daily investment returns that correspond to 125%
of the performance of the Dow Jones Industrial Average-SM- ("Dow"). The
objective of the U.S. Government Money Market Fund is to provide security of
principal, current income and liquidity by investing primarily in obligations
issued or guaranteed, as to principal and interest, by the U.S. government,
its agencies or instrumentalities and repurchase agreements that are fully
collateralized by such obligations.
Costs incurred by the Trust in connection with the organization, registration
and the initial public offering of shares, aggregating $15,607 for each Fund
(other than the Small Cap Plus Fund, Small Cap/Short Fund, Internet Plus Fund,
Internet/Short Fund and the Dow 30 Plus Fund), are being deferred and amortized
over the period of benefit, but not to exceed sixty months from the Fund's
commencement of operations. These costs were advanced by the Advisor and will be
reimbursed by the Trust. The proceeds of any redemption of the initial shares by
the original shareholder will be reduced by a pro rata portion of any then
unamortized organizational 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 redemption. Costs incurred by the Trust in connection with the
organization, registration and the initial public offering of shares of the
Small Cap Plus Fund, Small Cap/Short Fund, Internet Plus Fund, Internet/Short
Fund and the Dow 30 Plus Fund were expensed as incurred.
Effective February 2, 2000, the Trust redesignated outstanding shares as
Investor Class shares and began offering two new classes of shares: Advisor
Class and Broker Class. Investor Class shares are subject to an annual Rule
12b-1 fee of
54
<PAGE>
up to 1.00% of Investor Class' average daily net assets. The Board has
authorized each Fund's Investor Class shares to pay Rule 12b-1 fees of an
amount equal to the difference between the Fund's Total Annual Operating
Expenses and the contractual limit on Total Annual Operating Expenses of 1.50%
for the Plus Funds and 1.65% for the Short Funds. Advisor Class shares are
subject to an annual Rule 12b-1 fee of up to 1.00% of Advisor Class' average
daily net assets. The Board has authorized each Fund's Advisor Class shares to
pay Rule 12b-1 fees equal to 1.00% of Advisor Class' average daily net assets.
Broker Class shares are subject to an annual Rule 12b-1 fee of up to 1.00% of
Broker Class' average daily net assets. The Board has authorized each Fund's
Broker Class shares to pay Rule 12b-1 fees equal to 1.00% of Broker Class'
average daily net assets. The Broker Class shares are subject to a contingent
deferred sales charge ("CDSC") upon redemption from the Fund within six years
from the time of the original purchase. Each class of shares for each Fund has
identical rights and privileges except with respect to Rule 12b-1 fees, voting
rights on any other matters pertaining to a single class of shares and the
exchange privileges of each class of shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with accounting principles generally accepted in the
United States of America (GAAP).
a) INVESTMENT VALUATION - Securities that are listed on a securities exchange
or the Nasdaq Stock Market are valued at the last quoted sales price on the day
the valuation is made. Price information on listed stocks is taken from the
exchange where the security is primarily traded. If no sale is reported at that
time, the mean of the last bid and asked price is used. When market quotations
for options and futures positions held by a Fund are readily available, those
positions will be valued based upon such quotations. Other securities for which
no quotations are readily available or for which the Advisor has reason to
question the validity of quotations received are valued at fair value as
determined in good faith under the supervision of the Board of Trustees. U.S.
Government Money Market Fund instruments and instruments with a remaining
maturity of 60 days or less are valued at amortized cost, which approximates
market value.
b) REPURCHASE AGREEMENTS - Each Fund may enter into repurchase agreements
with banks that are members of the Federal Reserve System or securities dealers
who are members of a national securities exchange or are primary dealers in U.S.
Government securities. In connection with transactions in repurchase agreements,
it is the Trust's policy that the Fund receive, as collateral, securities whose
market value, including accrued interest, at all times will be at least equal to
100% of the amount invested by the Fund in each repurchase agreement. If the
seller defaults, and the value of the collateral declines, realization of the
collateral by the Fund may be delayed or limited.
c) WRITTEN OPTION ACCOUNTING - Each Fund, other than the U.S. Government
Money Market Fund, may write (sell) options. When a Fund writes an option, an
amount equal to the premium received is entered in the Fund's accounting records
as an asset and equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current value of the option
written. When an option expires, or if the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss if the cost of a closing purchase
transaction exceeds the premium received when the option was sold). As
collateral for uncovered written options, the Fund is required under the 1940
Act to maintain assets consisting of cash, cash equivalents or liquid
securities. This collateral is required to be adjusted daily to reflect the
market value of the purchase obligation for put options or the market value of
the instrument underlying the contract, but not less than the strike price, for
call options.
d) STOCK INDEX FUTURES CONTRACTS AND OPTIONS ON FUTURES CONTRACTS - Each
Fund, other than the U.S. Government Money Market Fund, may purchase and sell
stock index futures contracts and options on such futures contracts. Upon
entering into a contract, the Fund deposits and maintains as collateral such
initial margin as required by the exchange on which the transaction is effected.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the contract. Such
receipts or payments are known as variation margin and are recorded by the Fund
as unrealized gains and losses. When the contract is closed, the Fund records a
55
<PAGE>
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. As
collateral for futures contracts, the Fund is required under the 1940 Act to
maintain assets consisting of cash, cash equivalents or liquid securities. This
collateral is required to be adjusted daily to reflect the market value of the
purchase obligation for long futures contracts or the market value of the
instrument underlying the contract, but not less than the market price at which
the futures contract was established, for short futures contracts.
e) SHORT POSITIONS - The U.S./Short Fund, OTC/Short Fund, Small Cap/Short
Fund and the Internet/Short Fund may engage in short sale transactions. For
financial statement purposes, an amount equal to the settlement amount is
included in the Statement of Assets and Liabilities as an asset and an
equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current value of the short position. Subsequent
fluctuations in the market prices of securities sold, but not yet purchased, may
require purchasing the securities at prices which may differ from the market
value reflected on the Statement of Assets and Liabilities. The Fund is liable
for any dividends payable on securities while those securities are in a short
position. As collateral for its short positions, the Fund is required under the
1940 Act to maintain assets consisting of cash, cash equivalents or liquid
securities equal to the market value of the securities sold short, but not less
than the market value of such securities at the time they were sold short. This
collateral is required to be adjusted daily.
f) RISKS OF OPTIONS, FUTURES CONTRACTS, OPTIONS ON FUTURES CONTRACTS AND
SHORT POSITIONS - The risks inherent in the use of options, futures contracts,
options on futures contracts and short positions include 1) adverse changes in
the value of such instruments; 2) imperfect correlation between the price of
options and futures contracts and options thereon and movements in the price of
the underlying securities, index or futures contracts; 3) the possible absence
of a liquid secondary market for any particular instrument at any time; 4) the
possible need to defer closing out certain positions to avoid adverse tax
consequences; and 5) the possible nonperformance by the counterparty under the
terms of the contract. The Fund has designated all its cash, cash equivalents
and liquid securities as collateral for written options, futures contracts and
short positions.
g) FEDERAL INCOME TAXES - Each Fund intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated investment
company and to make the requisite distributions of income and capital gains to
its shareholders sufficient to relieve it from all or substantially all federal
income taxes.
h) INCOME AND EXPENSES - Dividend income is recognized on the ex-dividend
date, and interest income is recognized on an accrual basis. The Funds are
charged for those expenses that are directly attributable to each portfolio,
such as advisory fees and registration costs. Expenses that are not directly
attributable to a portfolio are allocated among the Trust's portfolios in
proportion to their respective net assets.
i) DISTRIBUTIONS TO SHAREHOLDERS - Each Fund, other than the U.S. Government
Money Market Fund, intends to distribute to its shareholders at least annually
any net investment income and net realized capital gains. The U.S. Government
Money Market Fund ordinarily will declare dividends from net investment income
on a daily basis and distribute those dividends monthly. Income and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are due
primarily to post-October losses which may not be recognized until the first day
of the following fiscal year, wash sale losses, which are deferred for tax
purposes, and unrealized gains or losses on open Section 1256 contracts which
are realized, for tax purposes, at August 31, 2000. Certain Funds also utilized
earnings and profits distributed to shareholders on redemptions of shares as
part of the dividends paid deduction.
j) USE OF ESTIMATES - The preparation of financial statements in conformity
with GAAP 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.
k) OTHER - Investment and shareholder transactions are recorded on trade
date. The Funds determine the gain or loss realized from the investment
transactions by comparing the original cost of the security lot sold with the
net sales proceeds. GAAP requires that permanent financial reporting and tax
differences be reclassified in the capital accounts.
56
<PAGE>
3. CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
U.S. PLUS FUND U.S./SHORT FUND
--------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999*
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
INVESTOR CLASS:
Shares sold 57,882,029 32,907,642 4,609,012 7,727,880
Shares issued to holders in
reinvestment of dividends -- 15,022 -- 668
Shares redeemed (55,759,793) (31,839,083) (4,669,794) (7,765,009)
----------- ----------- ---------- ----------
Net increase (decrease) 2,122,236 1,083,581 (60,782) (36,461)
----------- ----------- ---------- ----------
ADVISOR CLASS:
Shares sold 1,863,463 676,424
Shares issued to holders in
reinvestment of dividends -- --
Shares redeemed (1,859,291) (676,424)
----------- ----------
Net increase (decrease) 4,172 --
----------- ----------
BROKER CLASS:
Shares sold 4,940
Shares issued to holders in
reinvestment of dividends --
Shares redeemed --
-----------
Net increase (decrease) 4,940
-----------
Total net increase (decrease) from
capital share transactions 2,131,348 1,083,581 (60,782) (36,461)
=========== =========== ========== ==========
</TABLE>
*Capital share transactions restated to reflect a 1 for 5 reverse stock split
which occurred on June 7, 1999.
57
<PAGE>
<TABLE>
<CAPTION>
OTC PLUS FUND OTC/SHORT FUND
--------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999*
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
INVESTOR CLASS:
Shares sold 26,953,625 42,031,207 18,077,057 10,933,064
Shares issued to holders in
reinvestment of dividends 4,179 9,821 2,628 238
Shares redeemed (25,888,548) (39,661,678) (18,337,894) (10,754,038)
------------ ------------ ------------ -----------
Net increase (decrease) 1,069,256 2,379,350 (258,209) 179,264
------------ ------------ ------------ -----------
ADVISOR CLASS:
Shares sold 1,167,347 1,762,210
Shares issued to holders in
reinvestment of dividends -- --
Shares redeemed (1,133,620) (1,762,210)
------------ ------------
Net increase (decrease) 33,727 --
------------ ------------
BROKER CLASS:
Shares sold 262
Shares issued to holders in
reinvestment of dividends --
Shares redeemed --
-----------
Net increase (decrease) 262
-----------
Total net increase (decrease) from
capital share transactions 1,103,245 2,379,350 (258,209) 179,264
============ ============ ============ ===========
</TABLE>
*Capital share transactions restated to reflect a 1 for 5 reverse stock split
which occurred on June 7, 1999.
58
<PAGE>
<TABLE>
<CAPTION>
SMALL CAP PLUS FUND SMALL CAP/SHORT FUND INTERNET PLUS FUND
---------------------------------- -------------------- ------------------
YEAR ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 2000
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTOR CLASS:
Shares sold 103,808,201 49,645,812 7,087,491 29,047,690
Shares issued to holders in
reinvestment of dividends 25,449 -- -- --
Shares redeemed (101,760,032) (49,011,961) (7,086,639) (28,085,949)
------------ ----------- ---------- -----------
Net increase (decrease) 2,073,618 633,851 852 961,741
------------ ----------- ---------- -----------
ADVISOR CLASS:
Shares sold 2,977,953 8,743,609
Shares issued to holders in
reinvestment of dividends -- --
Shares redeemed (2,754,896) (8,115,214)
------------ -----------
Net increase (decrease) 223,057 628,395
------------ -----------
BROKER CLASS:
Shares sold 6,307,658
Shares issued to holders in
reinvestment of dividends --
Shares redeemed (5,350,192)
------------
Net increase (decrease) 957,466
------------
Total net increase (decrease) from
capital share transactions 3,254,141 633,851 852 1,590,136
============ =========== ========== ===========
</TABLE>
59
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT
INTERNET/SHORT FUND DOW 30 PLUS FUND MONEY MARKET FUND
------------------- ---------------- ---------------------------------
PERIOD ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 2000 AUGUST 31, 2000 AUGUST 31, 2000 AUGUST 31, 1999
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
INVESTOR CLASS:
Shares sold 1,628,439 30,995,390 2,422,593,640 849,108,149
Shares issued to holders in
reinvestment of dividends -- -- 1,505,343 729,062
Shares redeemed (1,600,742) (29,009,661) (2,457,919,572) (808,984,862)
---------- ----------- -------------- ------------
Net increase (decrease) 27,697 1,985,729 (33,820,589) 40,852,349
---------- ----------- -------------- ------------
ADVISOR CLASS:
Shares sold 24,874 158,560,076
Shares issued to holders in
reinvestment of dividends -- 42,209
Shares redeemed (15,604) (157,923,367)
----------- --------------
Net increase (decrease) 9,270 678,918
----------- --------------
BROKER CLASS:
Shares sold 548 79,208,018
Shares issued to holders in
reinvestment of dividends -- 24,827
Shares redeemed -- (78,522,388)
----------- --------------
Net increase (decrease) 548 710,457
----------- --------------
Total net increase (decrease) from
capital share transactions 27,697 1,995,547 (32,431,214) 40,852,349
========== =========== ============== ============
</TABLE>
60
<PAGE>
4. INVESTMENT TRANSACTIONS
During the period ended August 31, 2000, the aggregate purchases and sales of
investments (excluding short-term investments, options and futures contracts)
were:
<TABLE>
<CAPTION>
U.S. PLUS FUND U.S./SHORT FUND OTC PLUS FUND OTC/SHORT FUND
-------------- --------------- ------------- --------------
<S> <C> <C> <C> <C>
Purchases $529,494,430 $13,068,754 $665,272,162 $114,594,060
Sales $486,755,051 $15,291,516 $619,643,146 $129,074,236
SMALL CAP SMALL CAP/ INTERNET
PLUS FUND SHORT FUND PLUS FUND
--------------- ------------- --------------
Purchases $611,726,813 $62,077 $349,970,592
Sales $593,342,846 $63,959 $336,296,774
U.S. GOVERNMENT
INTERNET/ DOW 30 MONEY MARKET
SHORT FUND PLUS FUND FUND
--------------- ------------- --------------
Purchases $71,663,247 $240,154,967 $ --
Sales $73,317,308 $221,057,502 $ --
</TABLE>
There were no purchases or sales of long-term U.S. Government Securities.
During the period ended August 31, 2000, the following Funds wrote the following
options:
<TABLE>
<CAPTION>
U.S./SHORT FUND OTC PLUS FUND
--------------------------- ---------------------------
NUMBER OF PREMIUM NUMBER OF PREMIUM
CONTRACTS AMOUNT CONTRACTS AMOUNT
--------- -------- --------- -----------
<S> <C> <C> <C> <C>
Outstanding at beginning of period -- $ -- 97 $ 827,187
Options written 108 87,710 2,300 20,802,862
Options expired -- -- -- --
Options terminated (103) (86,535) (2,330) (21,362,893)
--------- -------- --------- -----------
Outstanding at end of period 5 $ 1,175 67 $ 267,156
========= ======== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP PLUS FUND SMALL CAP/SHORT FUND
--------------------------- ---------------------------
NUMBER OF PREMIUM NUMBER OF PREMIUM
CONTRACTS AMOUNT CONTRACTS AMOUNT
--------- ---------- --------- ---------
<S> <C> <C> <C> <C>
Outstanding at beginning of period 94 $ 109,314 -- $ --
Options written 9,230 5,738,506 1,823 1,902,567
Options expired -- -- -- --
Options terminated (9,209) (5,818,840) (1,823) (1,902,567)
--------- ---------- --------- ---------
Outstanding at end of period 115 $ 28,980 -- $ --
========= ========== ========= =========
</TABLE>
61
<PAGE>
<TABLE>
<CAPTION>
INTERNET PLUS FUND INTERNET/SHORT FUND
--------------------------- ---------------------------
NUMBER OF PREMIUM NUMBER OF PREMIUM
CONTRACTS AMOUNT CONTRACTS AMOUNT
--------- ---------- --------- --------
<S> <C> <C> <C> <C>
Outstanding at beginning of period -- $ -- -- $ --
Options written 2,726 9,861,603 820 146,239
Options expired (10) (21,737) -- --
Options terminated (2,661) (9,774,768) (810) (145,189)
--------- ---------- --------- --------
Outstanding at end of period 55 $ 65,098 10 $ 1,050
========= ========== ========= ========
</TABLE>
Transactions in futures contracts for the period ended August 31, 2000, for the
following Funds were as follows:
<TABLE>
<CAPTION>
U.S. PLUS FUND OTC PLUS FUND
-------------------------------- ---------------------------------
NUMBER OF AGGREGATE FACE NUMBER OF AGGREGATE FACE
CONTRACTS VALUE OF CONTRACTS CONTRACTS VALUE OF CONTRACTS
--------- ------------------ --------- ------------------
<S> <C> <C> <C> <C>
Outstanding at beginning of period 39 $ 12,975,426 -- $ --
Contracts opened 2,383 852,332,199 1,081 422,640,875
Contracts closed (2,343) (835,831,844) (1,013) (396,608,369)
--------- ------------------ --------- ------------------
Outstanding at end of period 79 $ 29,475,781 68 $ 26,032,506
========= ================== ========= ==================
<CAPTION>
OTC/SHORT FUND SMALL CAP PLUS FUND
-------------------------------- ---------------------------------
NUMBER OF AGGREGATE FACE NUMBER OF AGGREGATE FACE
CONTRACTS VALUE OF CONTRACTS CONTRACTS VALUE OF CONTRACTS
--------- ------------------ --------- ------------------
<S> <C> <C> <C> <C>
Outstanding at beginning of period -- $ -- 19 $ 4,156,611
Contracts opened 61 22,544,607 2,704 666,443,668
Contracts closed (61) (22,544,607) (2,574) (631,449,808)
--------- ------------------ --------- ------------------
Outstanding at end of period -- $ -- 149 $ 39,150,471
========= ================== ========= ==================
<CAPTION>
INTERNET/SHORT FUND DOW 30 PLUS FUND
-------------------------------- ---------------------------------
NUMBER OF AGGREGATE FACE NUMBER OF AGGREGATE FACE
CONTRACTS VALUE OF CONTRACTS CONTRACTS VALUE OF CONTRACTS
--------- ------------------ --------- ------------------
<S> <C> <C> <C> <C>
Outstanding at beginning of period -- $ -- -- $ --
Contracts opened 15 5,638,118 941 102,531,615
Contracts closed (15) (5,638,118) (885) (96,239,913)
--------- ------------------ --------- ------------------
Outstanding at end of period -- $ -- 56 $ 6,291,702
========= ================== ========= ==================
</TABLE>
62
<PAGE>
Transactions in short futures contracts for the period ended August 31, 2000,
for the following Funds were as follows:
<TABLE>
<CAPTION>
U.S./SHORT FUND OTC PLUS FUND
-------------------------------- ---------------------------------
NUMBER OF AGGREGATE FACE NUMBER OF AGGREGATE FACE
CONTRACTS VALUE OF CONTRACTS CONTRACTS VALUE OF CONTRACTS
--------- ------------------ --------- ------------------
<S> <C> <C> <C> <C>
Outstanding at beginning of period 4 $ 1,326,028 -- $ --
Contracts opened 366 126,160,909 28 9,879,874
Contracts closed (369) (127,108,541) (28) (9,879,874)
--------- ------------------ --------- ------------------
Outstanding at end of period 1 $ 378,396 -- $ --
========= ================== ========= ==================
<CAPTION>
OTC/SHORT FUND SMALL CAP PLUS FUND
-------------------------------- ---------------------------------
NUMBER OF AGGREGATE FACE NUMBER OF AGGREGATE FACE
CONTRACTS VALUE OF CONTRACTS CONTRACTS VALUE OF CONTRACTS
--------- ------------------ --------- ------------------
<S> <C> <C> <C> <C>
Outstanding at beginning of period 8 $ 1,892,264 -- $ --
Contracts opened 206 72,146,483 34 8,436,597
Contracts closed (214) (74,038,747) (34) (8,436,597)
--------- ------------------ --------- ------------------
Outstanding at end of period -- $ -- -- $ --
========= ================== ========= ==================
<CAPTION>
SMALL CAP/SHORT FUND INTERNET PLUS FUND
-------------------------------- ---------------------------------
NUMBER OF AGGREGATE FACE NUMBER OF AGGREGATE FACE
CONTRACTS VALUE OF CONTRACTS CONTRACTS VALUE OF CONTRACTS
--------- ------------------ --------- ------------------
<S> <C> <C> <C> <C>
Outstanding at beginning of period -- $ -- -- $ --
Contracts opened 1,036 274,484,013 11 4,096,551
Contracts closed (1,036) (274,484,013) (11) (4,096,551)
--------- ------------------ --------- ------------------
Outstanding at end of period -- $ -- -- $ --
========= ================== ========= ==================
<CAPTION>
INTERNET/SHORT FUND DOW 30 PLUS FUND
-------------------------------- ---------------------------------
NUMBER OF AGGREGATE FACE NUMBER OF AGGREGATE FACE
CONTRACTS VALUE OF CONTRACTS CONTRACTS VALUE OF CONTRACTS
--------- ------------------ --------- ------------------
<S> <C> <C> <C> <C>
Outstanding at beginning of period -- $ -- -- $ --
Contracts opened 14 4,943,937 4 443,182
Contracts closed (14) (4,943,937) (4) (443,182)
--------- ------------------ --------- ------------------
Outstanding at end of period -- $ -- -- $ --
========= ================== ========= ==================
</TABLE>
63
<PAGE>
At August 31, 2000, gross unrealized appreciation and depreciation of
investments for tax purposes were as follows:
<TABLE>
<CAPTION>
U.S. PLUS FUND U.S./SHORT FUND OTC PLUS FUND OTC/SHORT FUND
-------------- --------------- ------------- --------------
<S> <C> <C> <C> <C>
Appreciation $ 1,286,667 $ 6,625 $ 88,337,799 $ --
(Depreciation) (5,093,086) (7,070) (29,420,440) (373)
-------------- --------------- ------------- --------------
Net unrealized appreciation
(depreciation) on investments $ (3,806,419) $ (445) $ 58,917,359 $ (373)
============== =============== ============= ==============
<CAPTION>
SMALL CAP SMALL CAP/ INTERNET
PLUS FUND SHORT FUND PLUS FUND
--------------- ------------- --------------
<S> <C> <C> <C>
Appreciation $ 1,318,115 $ -- $ 2,241,908
(Depreciation) (9,147,806) (5) (8,376,618)
--------------- ------------- --------------
Net unrealized appreciation
(depreciation) on investments $ (7,829,691) $ (5) $ (6,134,710)
=============== ============= ==============
<CAPTION>
U.S. GOVERNMENT
INTERNET/ DOW 30 MONEY MARKET
SHORT FUND PLUS FUND FUND
--------------- ------------- --------------
<S> <C> <C> <C>
Appreciation $ -- $ 1,269,041 $ --
(Depreciation) (17,441) (4,185,117) --
--------------- ------------- --------------
Net unrealized appreciation
(depreciation) on investments $ (17,441) $ (2,916,076) $ --
=============== ============= ==============
</TABLE>
At August 31, 2000, the cost of investments for federal income tax purposes was
$57,434,983, $2,476,278, $125,779,541, $2,049,815, $48,359,872, $24,998,
$20,055,079, $993,176, $19,922,982 and $31,197,177 for the U.S. Plus Fund,
U.S./Short Fund, OTC Plus Fund, OTC/Short Fund, Small Cap Plus Fund, Small
Cap/Short Fund, Internet Plus Fund, Internet/Short Fund, Dow 30 Plus Fund and
U.S. Government Money Market Fund, respectively.
At August 31, 2000, the following Funds deferred, on a tax basis, post-October
losses of:
<TABLE>
<CAPTION>
Fund Post-October Losses
---- -------------------
<S> <C>
U.S. Plus Fund $ 105,417
U.S./Short Fund 815,750
OTC/Short Fund 1,739,614
Small Cap/Short Fund 1,555,743
Internet/Short Fund 124,132
Dow 30 Plus Fund 427,178
</TABLE>
These amounts may be used to offset future capital gains.
At, August 31, 2000, the U.S./Short Fund had accumulated net realized capital
loss carryovers of $1,196,053 expiring in 2007 and $2,374,990 expiring in 2008.
The OTC/Short Fund had accumulated net realized capital loss carryovers of
64
<PAGE>
$1,382,129 expiring in 2008. The Small Cap Plus Fund utilized capital loss
carryovers of $2,012,411 in 2000. To the extent that the Funds realize future
net capital gains, those gains will be offset by any unused capital loss
carryover.
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an investment advisory agreement with Rafferty Asset
Management, LLC ("Advisor"). The Advisor receives a fee, computed daily and
payable monthly, at the annual rates presented below as applied to each class'
daily net assets. Additionally, the Advisor may voluntarily waive additional
fees it might otherwise normally charge the Funds. The Advisor has contractually
agreed to pay all operating expenses (excluding dividends on short positions),
through August 31, 2002, in excess of the annual cap on expenses presented below
as applied to each class' daily net assets. The Advisor may recover from the
Funds the expenses paid in excess of the annual cap on expenses for the three
previous years, as long as the recovery does not cause any class to exceed such
annual cap on expenses. For the period ended August 31, 2000, the Advisor paid
the following expenses by class:
<TABLE>
<CAPTION>
U.S. PLUS FUND U.S./SHORT FUND
-------------------------------------------------- ---------------
INVESTOR CLASS ADVISOR CLASS BROKER CLASS INVESTOR CLASS
-------------- -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Annual Advisory rate 0.75% 0.75% 0.75% 0.90%
Annual cap on expenses 1.50% 2.50% 2.50% 1.65%
Expenses paid in excess of
annual cap on expenses -- 2000 $ -- $ -- $ -- $ 23,355
Voluntary waiver -- 2000 $ -- $ -- $ -- $ 1,216
Advisor expense waiver recovery -- 2000 $ 15,605 $ 136 $ 1 $ --
<CAPTION>
OTC PLUS FUND OTC/SHORT FUND
-------------------------------------------------- ----------------
INVESTOR CLASS ADVISOR CLASS BROKER CLASS INVESTOR CLASS
-------------- ------------- ------------ ----------------
Annual Advisory rate 0.75% 0.75% 0.75% 0.90%
Annual cap on expenses 1.50% 2.50% 2.50% 1.65%
Expenses paid in excess of
annual cap on expenses -- 2000 $ -- $ -- $ -- $ 4,362
Voluntary waiver -- 2000 $ -- $ 1,060 $ 1 $ --
Advisor expense waiver recovery -- 2000 $ 154,342 $ 527 $ -- $ --
<CAPTION>
SMALL CAP/
SMALL CAP PLUS FUND SHORT FUND
-------------------------------------------------- ---------------
INVESTOR CLASS ADVISOR CLASS BROKER CLASS INVESTOR CLASS
-------------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
Annual Advisory rate 0.75% 0.75% 0.75% 0.90%
Annual cap on expenses 1.50% 2.50% 2.50% 1.65%
Expenses paid in excess of
annual cap on expenses -- 2000 $ -- $ -- $ -- $ --
Voluntary waiver -- 2000 $ -- $ 107 $ 2,198 $ 13,344
Advisor expense waiver recovery -- 2000 $ 781 $ 20 $ 60 $ --
</TABLE>
65
<PAGE>
<TABLE>
<CAPTION>
INTERNET
INTERNET PLUS FUND SHORT/FUND
--------------------------------- --------------
INVESTOR CLASS ADVISOR CLASS INVESTOR CLASS
--------------- ------------- --------------
<S> <C> <C> <C>
Annual Advisory rate 0.75% 0.75% 0.90%
Annual cap on expenses 1.50% 2.50% 1.65%
Expenses paid in excess of annual cap on expenses -- 2000 $ 1,472 $ 180 $ --
Voluntary waiver -- 2000 $ -- $ -- $ 3,355
Advisor expense waiver recovery -- 2000 $ -- $ -- $ --
<CAPTION>
DOW 30 PLUS FUND
----------------------------------------------------
INVESTOR CLASS ADVISOR CLASS BROKER CLASS
--------------- ------------- -------------
<S> <C> <C> <C>
Annual Advisory rate 0.75% 0.75% 0.75%
Annual cap on expenses 1.50% 2.50% 2.50%
Expenses paid in excess of annual cap on expenses -- 2000 $ 1,587 $ 1 $ --
Voluntary waiver -- 2000 $ -- $ -- $ --
Advisor expense waiver recovery -- 2000 $ -- $ -- $ --
<CAPTION>
U.S. GOVERNMENT MONEY MARKET FUND
----------------------------------------------------
INVESTOR CLASS ADVISOR CLASS BROKER CLASS
-------------- ------------- ------------
<S> <C> <C> <C>
Annual Advisory rate 0.50% 0.50% 0.50%
Annual cap on expenses 1.00% 2.00% 2.00%
Expenses paid in excess of annual cap on expenses -- 2000 $ 12,375 $ 466 $ 206
Voluntary waiver -- 2000 $ -- $ -- $ --
Advisor expense waiver recovery -- 2000 $ -- $ -- $ --
</TABLE>
Remaining expenses subject to potential recovery expiring in:
<TABLE>
<CAPTION>
SMALL SMALL
U.S. U.S./ OTC OTC/ CAP CAP/
PLUS SHORT PLUS SHORT PLUS SHORT
FUND FUND FUND FUND FUND FUND
-------- ------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
2001 $81,181 $59,422 $ -- $122,876 $ -- $ --
2002 $ 5,548 $15,365 $ -- $ 14,732 $ -- $ --
2003 $ -- $24,326 $ -- $ 4,411 $ -- $ --
<CAPTION>
U.S.
GOVERNMENT
INTERNET INTERNET DOW 30 MONEY
PLUS SHORT PLUS MARKET
FUND FUND FUND FUND
--------- -------- -------- ----------
<S> <C> <C> <C> <C>
2001 $ -- $ -- $ -- $ 92,798
2002 $ -- $ -- $ -- $ 48,330
2003 $1,652 $ -- $1,588 $ 13,047
</TABLE>
66
<PAGE>
The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act (the
"12b-1 Plan") for each Fund of the Trust, which authorizes it to pay Rafferty
Capital Markets, Inc. (the "Distributor"), an affiliate of the Advisor, a
distribution and shareholder servicing fee of up to 1.00% of each Fund's average
daily net assets for the Investor Class and a distribution and shareholder
servicing fee of up to 1.00% of each Fund's average daily net assets for the
Advisor Class and Broker Class for services to existing Fund shareholders and
distribution of Fund shares.
During the period ended August 31, 2000, the Investor Class of the OTC Plus
Fund, Small Cap Plus Fund, Small Cap/Short Fund and Internet/Short Fund incurred
expenses of $365,320, $43,857, $14,773 and $2,026, respectively, pursuant to the
12b-1 Plan. During the period ended August 31, 2000, the Advisor Class of the
U.S. Plus Fund, U.S./Short Fund, OTC Plus Fund, OTC/Short Fund, Small Cap Plus
Fund, Internet Plus Fund, Dow 30 Plus Fund and U.S. Government Money Market Fund
incurred expenses of $2,542, $1,550, $6,210, $871, $8,088, $9,908, $34 and
$18,019, respectively, pursuant to the 12b-1 Plan. During the period ended
August 31, 2000, the Broker Class of the U.S. Plus Fund, OTC Plus Fund, Small
Cap Plus Fund, Dow 30 Plus Fund and U.S. Government Money Market Fund incurred
expenses of $21, $3, $24,057, $2 and $7,944, respectively, pursuant to the 12b-1
Plan.
6. INCOME TAX INFORMATION (UNAUDITED)
The Funds hereby designate the following amounts as long-term capital gain
distributions for purposes of the dividends paid deduction.
<TABLE>
<CAPTION>
<S> <C>
U.S. Plus Fund $ 399,291
OTC Plus Fund 4,076,906
Internet Plus Fund 28,501
</TABLE>
The amounts above include $399,291, $3,920,921 and $28,501 of earnings and
profits distributed to shareholders on redemptions for the U.S. Plus Fund, OTC
Plus Fund and Internet Plus Fund, respectively.
67
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POTOMAC FUNDS
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REPORT OF INDEPENDENT ACCOUNTANTS
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To the Board of Trustees and Shareholders of
Potomac Funds
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, of options written, of futures contracts, of short
futures contracts and of securities sold short, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Potomac Funds
(comprising, respectively, the U.S. Plus Fund, U.S./Short Fund, OTC Plus Fund,
OTC/Short Fund, Small Cap Plus Fund, Small Cap/Short Fund, Internet Plus Fund,
Internet/Short Fund, Dow 30 Plus Fund and U.S. Government Money Market Fund,
hereafter referred to as the "Funds") at August 31, 2000, the results of each of
their operations, the changes in each of their net assets and the financial
highlights for each of the periods indicated, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States of America, which require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at August 31, 2000 by correspondence with the custodian and
brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
October 30, 2000
68
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INVESTMENT ADVISOR
Rafferty Asset Management, LLC
1311 Mamaroneck Avenue
White Plains, NY 10605
ADMINISTRATOR, TRANSFER AGENT, DIVIDEND
PAYING AGENT & SHAREHOLDER SERVICING
AGENT
Firstar Mutual Fund Services, LLC
P.O. Box 1993
Milwaukee, WI 53201-1993
CUSTODIAN
Firstar Bank, N.A.
615 East Michigan Street
Milwaukee, WI 53202
COUNSEL
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, D.C. 20036-1800
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
100 East Wisconsin Avenue
Milwaukee, WI 53202
This report has been prepared for shareholders and may be distributed to others
only if preceded or accompanied by a current prospectus.
