Wells S&P REIT Index Fund
-------------------------
Semi-Annual Report
June 30, 1998
(Unaudited)
INVESTMENT ADVISER ADMINISTRATOR
------------------ -------------
WELLS ASSET MANAGEMENT, INC. COUNTRYWIDE FUND SERVICES, INC.
3885 Holcomb Bridge Road 312 Walnut Street
Atlanta, Georgia 30092 Cincinnati, Ohio 45201-5354
1.800.282.1581
<PAGE>
Wells
Real Estate Funds
-----------------
- --------------------------------------------------------------------------------
August 24, 1998
Dear Shareholder:
At Wells, we are pleased to present the first semi-annual report for the Wells
S&P REIT Index Fund, which was launched on March 2, 1998. The Fund is designed
to duplicate the investment results of the S&P REIT Index. Standard and Poor's
Corporation is the largest and most experienced indexing firm in the world. The
Fund is the first of its kind to meet the increasing demand for a real estate
investment alternative offering broad diversification and liquidity, along with
growth and income opportunities.
The power behind the Wells S&P REIT Index Fund comes from the fact that it
represents over 90% of the U.S. REIT market and encompasses all major real
estate property types, as well as all three types of REITs: equity, mortgage and
hybrid. Wide diversification is the Fund's most distinguishing characteristic.
We believe that such diversification can increase return and decrease risk.
The future of the REIT marketplace appears strong. Conversion of investment real
estate owned directly by pension plans, insurance companies and institutions to
REITs is in full swing. It is anticipated that literally trillions of dollars
worth of real estate could become securitized as REITs in the coming years. And
as an asset class, REITs have proven themselves through time. Of note, since
1975, REITs have outperformed stocks in total return and current dividend yields
on REITs are nearly four times that of stocks (the Fund's yield as of July 31,
1998, was 5.44% versus 1.44% for the S&P Composite Stock Index).
We are proud of the Wells S&P REIT Index Fund and are looking forward to adding
many more distinctive products to our product base in the next few years. We are
also excited to offer you easier access to Wells via our new website at
www.WellsREF.com. The site is periodically updated to serve your needs.
Your questions and comments are always welcome. Please do not hesitate to call
us at (800) 282-1581 with any of your needs.
Yours truly,
/s/ Leo F. Wells, III
Leo F. Wells, III
President
Wells Real Estate Funds o P.O. Box 5354 o Cincinnati, Ohio 45201 o 800.282.1581
<PAGE>
WELLS S&P REIT INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
================================================================================
ASSETS
Investment securities:
At acquisition cost $ 5,381,583
===========
At market value (Note 1) $ 5,244,003
Receivable for capital shares sold 212,549
Dividends receivable 25,657
Organization expenses, net (Note 1) 31,673
Other assets 41,231
-----------
TOTAL ASSETS 5,555,113
-----------
LIABILITIES
Dividends payable 2,306
Payable for capital shares redeemed 420
Payable for securities purchased 211,627
Payable to affiliates (Note 3) 69,026
Other accrued expenses and liabilities 4,700
-----------
TOTAL LIABILITIES 288,079
-----------
NET ASSETS $ 5,267,034
===========
Net assets consist of:
Paid-in capital $ 5,414,463
Undistributed net investment income 61
Accumulated net realized losses from security transactions (9,910)
Net unrealized depreciation on investments (137,580)
-----------
Net assets $ 5,267,034
===========
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) 561,238
===========
Net asset value and redemption price per share (Note 1) $ 9.38
===========
Maximum offering price per share (Note 1) $ 9.77
===========
See accompanying notes to financial statements.
<PAGE>
WELLS S&P REIT INDEX FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1998 (A) (UNAUDITED)
================================================================================
INVESTMENT INCOME
Dividend income $ 51,711
---------
EXPENSES
Custodian fees 12,244
Insurance expense 8,322
Postage and supplies 6,414
Accounting services fees (Note 3) 6,000
Registration fees 5,906
Investment advisory fees (Note 3) 3,953
Transfer agent fees (Note 3) 3,600
Administrative services fees (Note 3) 3,000
Amortization of organization expenses (Note 1) 2,262
Pricing expense 899
Trustees' fees and expenses 750
---------
TOTAL EXPENSES 53,350
Fees waived and expenses reimbursed by the Adviser (Note 3) (46,055)
---------
NET EXPENSES 7,295
---------
NET INVESTMENT INCOME 44,416
---------
REALIZED AND UNREALIZED LOSSES
ON INVESTMENTS
Net realized losses from security transactions (9,910)
Net change in unrealized appreciation/depreciation
on investments (137,580)
---------
NET REALIZED AND UNREALIZED
LOSSES ON INVESTMENTS (147,490)
---------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(103,074)
=========
(A) Represents the period from the commencement of operations (March 2, 1998)
through June 30, 1998.
See accompanying notes to financial statements.
<PAGE>
WELLS S&P REIT INDEX FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 1998 (A) (UNAUDITED)
================================================================================
FROM OPERATIONS:
Net investment income $ 44,416
Net realized losses from security transactions (9,910)
Net change in unrealized appreciation/depreciation
on investments (137,580)
-----------
Net decrease in net assets from operations (103,074)
-----------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income (44,355)
-----------
Decrease in net assets from distributions to shareholders (44,355)
-----------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 5,294,770
Net asset value of shares issued in
reinvestment of distributions to shareholders 42,048
Payments for shares redeemed (22,355)
-----------
Net increase in net assets from capital share transactions 5,314,463
-----------
TOTAL INCREASE IN NET ASSETS 5,167,034
NET ASSETS:
Beginning of period (Note 1) 100,000
-----------
End of period $ 5,267,034
===========
UNDISTRIBUTED NET INVESTMENT INCOME $ 61
===========
CAPITAL SHARE ACTIVITY:
Shares sold 549,056
Shares issued in reinvestment of
distributions to shareholders 4,483
Shares redeemed (2,301)
-----------
Net increase in shares outstanding 551,238
Shares outstanding, beginning of period (Note 1) 10,000
-----------
Shares outstanding, end of period 561,238
===========
(A) Represents the period from the commencement of operations (March 2, 1998)
through June 30, 1998.
See accompanying notes to financial statements.
<PAGE>
WELLS S&P REIT INDEX FUND
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED JUNE 30, 1998 (A) (UNAUDITED)
================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIOD:
Net asset value at beginning of period $ 10.00
---------
Income from investment operations:
Net investment income 0.08
Net realized and unrealized losses on investments (0.62)
---------
Total from investment operations (0.54)
---------
Less distributions:
Dividends from net investment income (0.08)
---------
Total distributions (0.08)
---------
Net asset value at end of period $ 9.38
=========
RATIOS AND SUPPLEMENTAL DATA:
Total return (B) (5.40)%
=========
Net assets at end of period (000's) $ 5,267
=========
Ratio of net expenses to average net assets (C) 0.92%(D)
Ratio of net investment income to average net assets 5.63%(D)
Portfolio turnover rate 13%(D)
- --------------------------------------------------------------------------------
(A) Represents the period from the commencement of operations (March 2, 1998)
through June 30, 1998.
(B) Total return shown excludes the effect of applicable sales loads and is not
annualized.
(C) Absent fee waivers and expense reimbursements by the Adviser, the ratio of
expenses to average net assets would have been 6.76% (D) for the period
ended June 30, 1998.
(D) Annualized.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
WELLS S&P REIT INDEX FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
========================================================================================
MARKET
EQUITY SECURITIES - 97.9% SHARES VALUE
- ----------------------------------------------------------------------------------------
APARTMENT/RESIDENTIAL - 19.7%
<S> <C> <C>
Apartment Investment & Management Company - Class A 1,900 $ 75,050
Associated Estates Realty Corp. 700 13,081
Avalon Bay Communities, Inc. 2,476 94,074
Berkshire Realty Company, Inc. 1,400 16,363
BRE Properties, Inc. - Class A 1,700 44,306
Camden Property Trust 1,775 52,806
Chateau Communities, Inc. 1,100 31,625
Colonial Properties Trust 1,000 31,000
Cornerstone Realty Income Trust, Inc. 1,500 17,156
Equity Residential Properties Trust 3,900 185,006
Essex Property Trust, Inc. 700 21,700
Gables Residential Trust 1,000 27,125
Irvine Apartment Communities, Inc. 800 23,150
Manufactured Home Communities, Inc. 1,000 24,125
Merry Land & Investment Company, Inc. 1,700 35,806
Mid-America Apartment Communities, Inc. 700 18,419
Pennsylvania Real Estate Investment Trust 500 11,094
Post Properties, Inc. 1,400 53,900
Security Capital Atlantic, Inc. 1,900 42,394
Security Capital Pacific Trust 3,800 85,500
Smith (Charles E.) Residential Realty, Inc. 600 19,200
Summit Properties, Inc. 1,000 18,937
Sun Communities, Inc. 700 23,187
United Dominion Realty Trust, Inc. 4,000 55,500
Walden Residential Properties, Inc. 700 17,150
------------
1,037,654
------------
DIVERSIFIED - 7.7%
CCA Prison Realty Trust 900 27,563
Duke Realty Investments, Inc. 3,200 75,800
Franchise Finance Corporation of America 1,900 49,281
Glenborough Realty Trust, Inc. 1,200 31,650
Liberty Property Trust 2,400 61,350
MGI Properties, Inc. 500 13,094
National Golf Properties, Inc. 500 15,031
Pacific Gulf Properties, Inc. 800 17,050
Spieker Properties, Inc. 2,400 93,000
Washington Real Estate Investment Trust 1,400 24,325
------------
408,144
------------
HEALTH CARE - 8.9%
American Health Properties, Inc. 1,000 25,000
Capstone Capital Corp. 900 20,700
Health Care Property Investors, Inc. 1,200 43,275
Health Care REIT, Inc. 1,000 25,500
Healthcare Realty Trust, Inc. 800 21,800
HRPT Properties Trust 5,200 97,825
LTC Properties, Inc. 1,100 20,488
Meditrust Corp. 3,900 108,956
<PAGE>
<CAPTION>
WELLS S&P REIT INDEX FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
========================================================================================
MARKET
EQUITY SECURITIES - 97.9% SHARES VALUE
- ----------------------------------------------------------------------------------------
HEALTH CARE - 8.9% (CONTINUED)
<S> <C> <C>
National Health Investors, Inc. 1,000 $ 33,125
Nationwide Health Properties, Inc. 1,800 42,975
OMEGA Healthcare Investors, Inc. 800 28,100
Omega Worldwide, Inc.* 53 401
------------
468,145
------------
HOTEL - 12.0%
Equity Inns, Inc. 1,400 18,463
FelCor Suite Hotels, Inc. 1,400 43,925
Hospitality Properties Trust 1,700 54,612
Patriot American Hospitality, Inc. 5,600 134,050
RFS Hotel Investors, Inc. 1,000 19,000
Starwood Hotels & Resorts 7,300 352,681
Winston Hotels, Inc. 600 7,500
------------
630,231
------------
INDUSTRIAL/OFFICE - 24.5%
Arden Realty, Inc. 2,500 64,688
Boston Properties, Inc. 2,400 82,800
Brandywine Realty Trust 1,500 33,562
CarrAmerica Realty Corp. 2,600 73,775
CenterPoint Properties Corp. 800 26,450
Cornerstone Properties, Inc. 4,000 70,500
Cousins Properties, Inc. 1,200 35,850
Crescent Real Estate Equities Company 4,700 158,037
EastGroup Properties, Inc. 600 12,037
Equity Office Properties Trust 9,900 280,913
First Industrial Realty Trust, Inc. 1,500 47,719
Highwoods Properties, Inc. 2,100 67,856
Kilroy Realty Corp. 1,100 27,500
Mack-Cali Realty Corp. 2,200 75,625
Prentiss Properties Trust 1,600 38,900
Reckson Associates Realty Corp. 1,600 37,800
Reckson Services Industries, Inc.* 104 344
Security Capital Industrial Trust 4,800 120,000
TriNet Corporate Realty Trust, Inc. 1,000 34,000
------------
1,288,356
------------
MORTGAGE - 2.3%
Capstead Mortgage Corp. 2,300 19,263
CRIIMI MAE, Inc. 1,900 26,363
Dynex Capital, Inc. 1,700 18,912
Indymac Mortgage Holdings, Inc. 2,600 59,150
------------
123,688
------------
RETAIL CENTERS - 18.4%
Bradley Real Estate, Inc. 900 19,013
Burnham Pacific Properties, Inc. 1,300 18,444
CBL & Associates Properties, Inc. 900 21,825
<PAGE>
<CAPTION>
WELLS S&P REIT INDEX FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
========================================================================================
MARKET
EQUITY SECURITIES - 97.9% SHARES VALUE
- ----------------------------------------------------------------------------------------
RETAIL CENTERS - 18.4% (CONTINUED)
<S> <C> <C>
Chelsea GCA Realty, Inc. 600 $ 24,000
Commercial Net Lease Realty 1,200 19,425
Developers Diversified Realty Corp. 1,100 43,106
Excel Realty Trust, Inc. 900 25,931
Federal Realty Investment Trust 1,600 38,500
General Growth Properties, Inc. 1,400 52,325
Glimcher Realty Trust 900 17,494
Horizon Group Properties, Inc.* 83 550
IRT Property Company 1,200 13,200
JDN Realty Corp. 800 25,500
JP Realty, Inc. 700 16,494
Kimco Realty Corp. 2,100 86,100
Kimco Realty Corp., 7.50%, Series D Convertible Preferred 144 3,879
Kranzco Realty Trust 400 7,375
Macerich Company (The) 1,200 35,175
Mills Corp. 900 21,600
New Plan Realty Trust 2,300 56,350
Prime Retail, Inc. 1,578 18,833
Prime Retail, Inc., 8.50%, Series B Convertible Preferred 160 3,280
Realty Income Corp. 1,100 29,012
Simon DeBartolo Group, Inc. 4,400 143,000
Taubman Centers, Inc. 2,100 29,925
Urban Shopping Centers, Inc. 700 22,050
Vornado Realty Trust 3,300 130,969
Weingarten Realty Investors 1,100 45,994
------------
969,349
------------
SELF STORAGE - 4.4%
Public Storage, Inc. 4,800 134,400
Shurgard Storage Centers, Inc. - Class A 1,100 30,525
Sovran Self Storage, Inc. 500 14,125
Storage Trust Realty 600 14,025
Storage USA, Inc. 1,100 38,500
------------
231,575
------------
TOTAL EQUITY SECURITIES (COST $5,294,722) $ 5,157,142
------------
CASH EQUIVALENTS - 1.7% (COST $86,861)
Star Treasury Fund 86,861 $ 86,861
------------
TOTAL INVESTMENTS SECURITIES - 99.6% (COST $5,381,583) $ 5,244,003
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.4% 23,031
------------
NET ASSETS - 100.0% $ 5,267,034
============
</TABLE>
* Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
WELLS S&P REIT INDEX FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (UNAUDITED)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
The Wells S&P REIT Index Fund (the Fund) is a diversified series of the Wells
Family of Real Estate Funds (the Trust), an open-end management investment
company registered under the Investment Company Act of 1940. The Trust was
organized as an Ohio business trust on June 4, 1997. The Fund was capitalized on
December 22, 1997, when Leo F. Wells III, the President of the Fund's investment
adviser, Wells Asset Management, Inc. (the Adviser), purchased the initial
10,000 shares of the Fund at $10.00 per share. The public offering of shares of
the Fund commenced on March 2, 1998. The Fund had no operations prior to the
public offering of shares except for the initial issuance of shares.
The Fund seeks to provide investment results corresponding to the performance of
the S&P REIT Index (the Index) by investing in the stocks included in the Index.
The following is a summary of the Fund's significant accounting policies:
Securities valuation -- The Fund's portfolio securities are valued as of the
close of the regular session of trading on the New York Stock Exchange,
currently 4:00 p.m., Eastern time. Securities which are traded over-the-counter
are valued based on the last sales price, if available, otherwise, at the last
quoted bid price. Securities traded on stock exchanges or quoted by NASDAQ are
valued their last sales price on the principal exchange where the security is
traded or, if not traded on a particular day, at the closing bid price.
Securities traded in the over-the-counter market, and which are not quoted by
NASDAQ, are valued at their last sales price or, if not available, at their last
quoted bid price.
Share valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding, rounded to the nearest cent. The offering price
per share of the Fund is equal to the net asset value per share plus a sales
load equal to 4.17% of the net asset value (or 4% of the offering price). The
redemption price per share of the Fund is equal to the net asset value per
share.
Investment income -- Dividend income is recorded on the ex-dividend date.
Interest income is accrued as earned.
Distributions to shareholders -- Distributions to shareholders arising from net
investment income are declared and paid quarterly. Net realized short-term
capital gains, if any, may be distributed throughout the year and net realized
long-term capital gains, if any, are distributed at least once each year. Income
dividends and capital gain distributions are determined in accordance with
income tax regulations.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Organization expenses - Expenses of organization, net of certain expenses paid
by the Adviser, have been capitalized and are being amortized on a straight-line
basis over five years.
<PAGE>
WELLS S&P REIT INDEX FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (UNAUDITED)
================================================================================
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period.
Actual results could differ from those estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code (the Code) available to regulated
investment companies. As provided therein, in any fiscal year in which the Fund
so qualifies and distributes at least 90% of its taxable net income, the Fund
(but not the shareholders) will be relieved of federal income tax on the income
distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
As of June 30, 1998, net unrealized depreciation on investments was $137,580 for
federal income tax purposes, of which $58,931 related to appreciated securities
and $196,511 related to depreciated securities based on a federal income tax
cost basis of $5,381,583.
2. INVESTMENT TRANSACTIONS
During the period ended June 30, 1998, purchases and proceeds from sales of
portfolio securities, other than short-term investments, amounted to $5,423,342
and $118,710, respectively.
3. TRANSACTIONS WITH AFFILIATES
Certain trustees and officers of the Trust are also officers of the Adviser, of
Wells Investment Securities, Inc. (the Underwriter), an affiliate of the Adviser
and the exclusive agent for the distribution of the Fund's shares, or of
Countrywide Fund Services, Inc. (CFS), the administrative services agent,
shareholder servicing and transfer agent, and accounting services agent for the
Trust.
ADVISORY AGREEMENT
The Adviser has overall supervisory responsibility for the general management
and investment of the Fund's assets and portfolio securities pursuant to the
terms of an Advisory Agreement. The Fund pays the Adviser an investment advisory
fee, computed and accrued daily and paid monthly, at an annual rate of 0.50% of
the average daily net assets of the Fund.
In order to reduce the operating expenses of the Fund, the Adviser voluntarily
waived its investment advisory fees of $3,953 and reimbursed the Fund for
$42,102 of other operating expenses during the period ended June 30, 1998.
<PAGE>
WELLS S&P REIT INDEX FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (UNAUDITED)
================================================================================
SUB-ADVISORY AGREEMENT
Gateway Investment Advisers, L.P. (the Sub-Adviser) has been retained by the
Adviser to provide portfolio management services for the Fund's investments
pursuant to the terms of a Sub-Advisory Agreement between the Sub-Adviser, the
Adviser and the Trust. The Adviser (not the Fund) pays the Sub-Adviser a fee,
computed and accrued daily and paid monthly, at an annual rate of 0.15% of the
Fund's average daily net assets up to $100 million; 0.10% of such net assets
from $100 million to $200 million; and 0.07% of such net assets in excess of
$200 million, subject to a $3,000 minimum monthly fee.
ADMINISTRATION AGREEMENT
Under the terms of an Administration Agreement, CFS supplies non-investment
related administrative and compliance services for the Fund. CFS supervises the
preparation of tax returns, reports to shareholders, reports to and filings with
the Securities and Exchange Commission and state securities commissions, and
materials for meetings of the Board of Trustees. For these services, CFS
receives a monthly fee at an annual rate of 0.15% of the Fund's average daily
net assets up to $50 million; 0.125% of such net assets from $50 million to $100
million; and 0.10% of such net assets in excess of $100 million, subject to a
$1,000 minimum monthly fee.
TRANSFER AGENT AND SHAREHOLDER SERVICING AGREEMENT
Under the terms of a Transfer, Dividend Disbursing, Shareholder Service and Plan
Agency Agreement, CFS maintains the records of each shareholder's account,
answers shareholders' inquiries concerning their accounts, processes purchases
and redemptions of the Fund's shares, acts as dividend and distribution
disbursing agent and performs other shareholder service functions. For these
services, CFS receives a monthly fee based on the number of shareholder accounts
in the Fund, subject to a minimum monthly fee. In addition, the Fund pays
out-of-pocket expenses including, but not limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of an Accounting Services Agreement, CFS calculates the daily
net asset value per share and maintains the financial books and records of the
Fund. For these services, CFS receives a monthly fee based on the Fund's average
daily net assets. In addition, the Fund pays certain out-of-pocket expenses
incurred by CFS in obtaining valuations of the Fund's portfolio securities.
UNDERWRITING AGREEMENT
Under the terms of an Underwriting Agreement, the Underwriter serves as the
exclusive agent for the distribution of the Fund's shares. For these services,
the Underwriter earned $7,236 from underwriting and broker commissions on the
sale of shares during the period ended June 30, 1998.
PLAN OF DISTRIBUTION
The Trust has adopted a Plan of Distribution (the Plan) pursuant to Rule 12b-1
under the 1940 Act. The Plan provides that the Fund may directly incur or
reimburse the Underwriter for certain costs related to the distribution of the
Fund's shares, not to exceed 0.25% of average daily net assets. For the period
ended June 30, 1998, the Fund incurred no such expenses under the Plan.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001040623
<NAME> WELLS FAMILY OF REAL ESTATE FUNDS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 5,381,583
<INVESTMENTS-AT-VALUE> 5,244,003
<RECEIVABLES> 238,206
<ASSETS-OTHER> 72,904
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,555,113
<PAYABLE-FOR-SECURITIES> 211,627
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 76,452
<TOTAL-LIABILITIES> 288,079
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,414,463
<SHARES-COMMON-STOCK> 561,238
<SHARES-COMMON-PRIOR> 10,000
<ACCUMULATED-NII-CURRENT> 61
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (9,910)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (137,580)
<NET-ASSETS> 5,267,034
<DIVIDEND-INCOME> 51,711
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 7,295
<NET-INVESTMENT-INCOME> 44,416
<REALIZED-GAINS-CURRENT> (9,910)
<APPREC-INCREASE-CURRENT> (137,580)
<NET-CHANGE-FROM-OPS> (103,074)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 44,355
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 549,056
<NUMBER-OF-SHARES-REDEEMED> 2,301
<SHARES-REINVESTED> 4,483
<NET-CHANGE-IN-ASSETS> 5,167,034
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,953
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 53,350
<AVERAGE-NET-ASSETS> 2,380,945
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .08
<PER-SHARE-GAIN-APPREC> (.62)
<PER-SHARE-DIVIDEND> .08
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.38
<EXPENSE-RATIO> .92
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
