<PAGE> PAGE 1
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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<PAGE> PAGE 18
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<PAGE> PAGE 19
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<PAGE> PAGE 20
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<PAGE> PAGE 21
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058 C000400 N
058 D000400 N
058 E000400 N
059 000400 Y
060 A000400 Y
060 B000400 Y
061 000400 5
062 A000400 N
062 B000400 0.0
062 C000400 0.0
062 D000400 0.0
062 E000400 0.0
062 F000400 0.0
062 G000400 0.0
062 H000400 0.0
062 I000400 0.0
062 J000400 0.0
062 K000400 0.0
062 L000400 0.0
062 M000400 0.0
062 N000400 0.0
062 O000400 0.0
062 P000400 0.0
062 Q000400 0.0
062 R000400 0.0
063 A000400 0
063 B000400 0.0
066 A000400 Y
066 B000400 N
066 C000400 N
066 D000400 Y
066 E000400 N
066 F000400 N
066 G000400 N
067 000400 N
068 A000400 N
<PAGE> PAGE 22
068 B000400 N
069 000400 N
070 A010400 Y
070 A020400 N
070 B010400 Y
070 B020400 N
070 C010400 Y
070 C020400 N
070 D010400 Y
070 D020400 N
070 E010400 N
070 E020400 N
070 F010400 Y
070 F020400 N
070 G010400 Y
070 G020400 N
070 H010400 Y
070 H020400 N
070 I010400 N
070 I020400 N
070 J010400 Y
070 J020400 N
070 K010400 Y
070 K020400 N
070 L010400 Y
070 L020400 N
070 M010400 Y
070 M020400 N
070 N010400 Y
070 N020400 N
070 O010400 Y
070 O020400 N
070 P010400 N
070 P020400 N
070 Q010400 N
070 Q020400 N
070 R010400 N
070 R020400 N
071 A000400 3113
071 B000400 162
071 C000400 2000
071 D000400 8
072 A000400 12
072 B000400 8
072 C000400 23
072 D000400 0
072 E000400 0
072 F000400 19
072 G000400 14
072 H000400 0
072 I000400 11
<PAGE> PAGE 23
072 J000400 11
072 K000400 0
072 L000400 0
072 M000400 6
072 N000400 0
072 O000400 0
072 P000400 0
072 Q000400 0
072 R000400 0
072 S000400 0
072 T000400 10
072 U000400 6
072 V000400 0
072 W000400 10
072 X000400 87
072 Y000400 48
072 Z000400 -8
072AA000400 0
072BB000400 54
072CC010400 122
072CC020400 0
072DD010400 0
072DD020400 0
072EE000400 0
073 A010400 0.0000
073 A020400 0.0000
073 B000400 0.0000
073 C000400 0.0000
074 A000400 0
074 B000400 0
074 C000400 0
074 D000400 0
074 E000400 0
074 F000400 3019
074 G000400 0
074 H000400 0
074 I000400 301
074 J000400 23
074 K000400 0
074 L000400 3
074 M000400 46
074 N000400 3392
074 O000400 129
074 P000400 0
074 Q000400 0
074 R010400 0
074 R020400 0
074 R030400 0
074 R040400 7
074 S000400 0
074 T000400 3256
<PAGE> PAGE 24
074 U010400 280
074 U020400 0
074 V010400 11.64
074 V020400 0.00
074 W000400 0.0000
074 X000400 0
074 Y000400 0
075 A000400 0
075 B000400 2460
076 000400 0.00
008 A000501 THIRD MILLENNIUM INVESTMENT ADVISORS LLC
008 B000501 A
008 C000501 801-55720
008 D010501 NEW YORK
008 D020501 NY
008 D030501 10022
015 A000501 BROWN BROTHERS HARRIMAN & CO
015 B000501 C
015 C010501 BOSTON
015 C020501 MA
015 C030501 02109
015 E010501 X
028 A010500 506
028 A020500 0
028 A030500 0
028 A040500 12
028 B010500 1
028 B020500 0
028 B030500 0
028 B040500 0
028 C010500 7
028 C020500 0
028 C030500 0
028 C040500 2
028 D010500 93
028 D020500 0
028 D030500 0
028 D040500 0
028 E010500 94
028 E020500 0
028 E030500 0
028 E040500 57
028 F010500 24
028 F020500 0
028 F030500 0
028 F040500 31
028 G010500 725
028 G020500 0
028 G030500 0
028 G040500 100
028 H000500 0
<PAGE> PAGE 25
029 000500 N
030 A000500 0
030 B000500 0.00
030 C000500 0.00
031 A000500 0
031 B000500 0
032 000500 0
033 000500 0
034 000500 N
035 000500 0
036 B000500 0
037 000500 Y
038 000500 0
039 000500 N
040 000500 Y
041 000500 N
042 A000500 0
042 B000500 0
042 C000500 0
042 D000500 0
042 E000500 0
042 F000500 0
042 G000500 0
042 H000500 0
043 000500 0
044 000500 0
045 000500 Y
046 000500 N
047 000500 Y
048 000500 0.000
048 A010500 125000
048 A020500 1.750
048 B010500 125000
048 B020500 1.500
048 C010500 0
048 C020500 0.000
048 D010500 0
048 D020500 0.000
048 E010500 0
048 E020500 0.000
048 F010500 0
048 F020500 0.000
048 G010500 0
048 G020500 0.000
048 H010500 0
048 H020500 0.000
048 I010500 0
048 I020500 0.000
048 J010500 0
048 J020500 0.000
048 K010500 250000
<PAGE> PAGE 26
048 K020500 1.250
049 000500 N
050 000500 N
051 000500 N
052 000500 N
053 A000500 Y
053 B000500 N
053 C000500 N
055 A000500 N
055 B000500 N
056 000500 N
057 000500 N
058 A000500 N
058 B000500 N
058 C000500 N
058 D000500 N
058 E000500 N
059 000500 Y
060 A000500 Y
060 B000500 Y
061 000500 1
062 A000500 N
062 B000500 0.0
062 C000500 0.0
062 D000500 0.0
062 E000500 0.0
062 F000500 0.0
062 G000500 0.0
062 H000500 0.0
062 I000500 0.0
062 J000500 0.0
062 K000500 0.0
062 L000500 0.0
062 M000500 0.0
062 N000500 0.0
062 O000500 0.0
062 P000500 0.0
062 Q000500 0.0
062 R000500 0.0
063 A000500 0
063 B000500 0.0
066 A000500 Y
066 B000500 N
066 C000500 Y
066 D000500 N
066 E000500 N
066 F000500 N
066 G000500 N
067 000500 N
068 A000500 N
068 B000500 Y
<PAGE> PAGE 27
069 000500 N
070 A010500 Y
070 A020500 N
070 B010500 Y
070 B020500 N
070 C010500 Y
070 C020500 N
070 D010500 Y
070 D020500 N
070 E010500 N
070 E020500 N
070 F010500 Y
070 F020500 N
070 G010500 Y
070 G020500 N
070 H010500 Y
070 H020500 N
070 I010500 N
070 I020500 N
070 J010500 Y
070 J020500 N
070 K010500 Y
070 K020500 N
070 L010500 Y
070 L020500 N
070 M010500 Y
070 M020500 N
070 N010500 Y
070 N020500 N
070 O010500 Y
070 O020500 N
070 P010500 N
070 P020500 N
070 Q010500 N
070 Q020500 N
070 R010500 N
070 R020500 N
071 A000500 980
071 B000500 114
071 C000500 810
071 D000500 14
072 A000500 12
072 B000500 0
072 C000500 4
072 D000500 0
072 E000500 0
072 F000500 12
072 G000500 14
072 H000500 0
072 I000500 6
072 J000500 52
<PAGE> PAGE 28
072 K000500 0
072 L000500 0
072 M000500 6
072 N000500 2
072 O000500 0
072 P000500 0
072 Q000500 0
072 R000500 0
072 S000500 0
072 T000500 2
072 U000500 11
072 V000500 0
072 W000500 8
072 X000500 113
072 Y000500 94
072 Z000500 -15
072AA000500 44
072BB000500 0
072CC010500 234
072CC020500 0
072DD010500 0
072DD020500 0
072EE000500 0
073 A010500 0.0000
073 A020500 0.0000
073 B000500 0.0000
073 C000500 0.0000
074 A000500 101
074 B000500 0
074 C000500 0
074 D000500 0
074 E000500 0
074 F000500 1143
074 G000500 0
074 H000500 0
074 I000500 0
074 J000500 0
074 K000500 0
074 L000500 5
074 M000500 77
074 N000500 1326
074 O000500 0
074 P000500 0
074 Q000500 0
074 R010500 0
074 R020500 0
074 R030500 0
074 R040500 13
074 S000500 0
074 T000500 1313
074 U010500 93
<PAGE> PAGE 29
074 U020500 0
074 V010500 14.17
074 V020500 0.00
074 W000500 0.0000
074 X000500 0
074 Y000500 0
075 A000500 0
075 B000500 1066
076 000500 0.00
SIGNATURE JOHN PASCO, III
TITLE CHAIRMAN
INDEX OF EXHIBITS
EXHIBIT A: FINANCIAL DATA SCHEDULES
EXHIBIT B: REPORT OF INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS ON INTERNAL CONTROL STRUCTURE
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> SAND HILL PORTFOLIO MANAGER FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> AUG-31-1999
<INVESTMENTS-AT-COST> 11096094
<INVESTMENTS-AT-VALUE> 14164528
<RECEIVABLES> 43278
<ASSETS-OTHER> 4605
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 14212411
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22345
<TOTAL-LIABILITIES> 22345
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11136
<SHARES-COMMON-STOCK> 901,904
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 20820
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (35231)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3068434
<NET-ASSETS> 14190066
<DIVIDEND-INCOME> 108734
<INTEREST-INCOME> 157374
<OTHER-INCOME> 0
<EXPENSES-NET> 241300
<NET-INVESTMENT-INCOME> 24808
<REALIZED-GAINS-CURRENT> 371168
<APPREC-INCREASE-CURRENT> 2083003
<NET-CHANGE-FROM-OPS> 2478979
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 55461
<DISTRIBUTIONS-OF-GAINS> 673457
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 160793
<NUMBER-OF-SHARES-REDEEMED> 70273
<SHARES-REINVESTED> 48380
<NET-CHANGE-IN-ASSETS> 2070111
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 126902
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 261165
<AVERAGE-NET-ASSETS> 11690000
<PER-SHARE-NAV-BEGIN> 13.59
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 3.04
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .92
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.73
<EXPENSE-RATIO> 1.90
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> CSI EQUITY FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> AUG-31-1999
<INVESTMENTS-AT-COST> 42724869
<INVESTMENTS-AT-VALUE> 51726978
<RECEIVABLES> 1222441
<ASSETS-OTHER> 33152
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 52982571
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 58159
<TOTAL-LIABILITIES> 58159
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 44517064
<SHARES-COMMON-STOCK> 3960386
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (594761)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9002109
<NET-ASSETS> 52924412
<DIVIDEND-INCOME> 511325
<INTEREST-INCOME> 40521
<OTHER-INCOME> 0
<EXPENSES-NET> 613786
<NET-INVESTMENT-INCOME> (61940)
<REALIZED-GAINS-CURRENT> (570895)
<APPREC-INCREASE-CURRENT> 10984834
<NET-CHANGE-FROM-OPS> 10351999
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 64879
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1470603
<NUMBER-OF-SHARES-REDEEMED> 206346
<SHARES-REINVESTED> 4869
<NET-CHANGE-IN-ASSETS> 16061049
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 409260
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 613786
<AVERAGE-NET-ASSETS> 40993000
<PER-SHARE-NAV-BEGIN> 9.88
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 3.52
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .02
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.36
<EXPENSE-RATIO> 1.50
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> CSI FIXED INCOME FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> AUG-31-1999
<INVESTMENTS-AT-COST> 47240589
<INVESTMENTS-AT-VALUE> 45567202
<RECEIVABLES> 3042339
<ASSETS-OTHER> 33266
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 48642807
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 37327
<TOTAL-LIABILITIES> 37327
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 50259265
<SHARES-COMMON-STOCK> 4984424
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2203
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 17399
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1673387)
<NET-ASSETS> 48605480
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2152118
<OTHER-INCOME> 0
<EXPENSES-NET> 411073
<NET-INVESTMENT-INCOME> 1741045
<REALIZED-GAINS-CURRENT> 17399
<APPREC-INCREASE-CURRENT> (2548398)
<NET-CHANGE-FROM-OPS> (789954)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2452926
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2734375
<NUMBER-OF-SHARES-REDEEMED> 1223411
<SHARES-REINVESTED> 239692
<NET-CHANGE-IN-ASSETS> 17948035
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 206304
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 411073
<AVERAGE-NET-ASSETS> 38446
<PER-SHARE-NAV-BEGIN> 10.48
<PER-SHARE-NII> .39
<PER-SHARE-GAIN-APPREC> .51
<PER-SHARE-DIVIDEND> 000
<PER-SHARE-DISTRIBUTIONS> .61
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.75
<EXPENSE-RATIO> 1
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> NEW MARKET
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> AUG-31-1999
<INVESTMENTS-AT-COST> 3197906
<INVESTMENTS-AT-VALUE> 3320346
<RECEIVABLES> 26430
<ASSETS-OTHER> 45221
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3391997
<PAYABLE-FOR-SECURITIES> 129206
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6529
<TOTAL-LIABILITIES> 135735
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3188188
<SHARES-COMMON-STOCK> 279841
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (54366)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 122440
<NET-ASSETS> 3256262
<DIVIDEND-INCOME> 22715
<INTEREST-INCOME> 7611
<OTHER-INCOME> 0
<EXPENSES-NET> 38364
<NET-INVESTMENT-INCOME> (8038)
<REALIZED-GAINS-CURRENT> (54366)
<APPREC-INCREASE-CURRENT> 122440
<NET-CHANGE-FROM-OPS> 60036
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 282806
<NUMBER-OF-SHARES-REDEEMED> 2965
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 3196226
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 19278
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 86732
<AVERAGE-NET-ASSETS> 2460000
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (.03)
<PER-SHARE-GAIN-APPREC> 1.67
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.64
<EXPENSE-RATIO> 1.99
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> THIRD MILLENNIUM RUSSIA FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> AUG-31-1999
<INVESTMENTS-AT-COST> 908995
<INVESTMENTS-AT-VALUE> 1143269
<RECEIVABLES> 4720
<ASSETS-OTHER> 103499
<OTHER-ITEMS-ASSETS> 74284
<TOTAL-ASSETS> 1325772
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13169
<TOTAL-LIABILITIES> 13169
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1049592
<SHARES-COMMON-STOCK> 92627
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 28737
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 234274
<NET-ASSETS> 1312603
<DIVIDEND-INCOME> 4720
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 19547
<NET-INVESTMENT-INCOME> (14827)
<REALIZED-GAINS-CURRENT> 43564
<APPREC-INCREASE-CURRENT> 234274
<NET-CHANGE-FROM-OPS> 263011
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 101353
<NUMBER-OF-SHARES-REDEEMED> 8726
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1049592
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 12305
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 113405
<AVERAGE-NET-ASSETS> 1066000
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (.16)
<PER-SHARE-GAIN-APPREC> 4.33
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.17
<EXPENSE-RATIO> (2.08)
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
EXHIBIT B TO FORM N-SAR
AUGUST 31, 1999
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON INTERNAL CONTROL STRUCTURE
The Board of Directors
The World Funds, Inc.
Richmond, Virginia
In planning and performing our audits of the financial
statements of CSI Fixed Income Fund, CSI Equity Fund,
Sand Hill Portfolio Manager Fund, The New Market Fund
and Third Millennium Russia Fund, each a series of
shares of The World Funds, Inc., for the periods ended
August 31, 1999, we considered their internal control
structure, including procedures for safeguarding
securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on
the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on
the internal control structure.
The management of the Funds is responsible for
establishing and maintaining an internal control
structure. In fulfilling this responsibility, estimates
and judgments by management are required to assess the
expected benefits and related costs of internal control
structure policies and procedures. Two of the
objectives of an internal control structure are to
provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from
unauthorized use or disposition, and that transactions
are executed in accordance with management's
authorization and recorded properly to permit
preparation of financial statements in conformity with
generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not
be detected. Also, projection of any evaluation of
the structure to future periods is subject to the risk
that it may become inadequate because of changes in
conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control structure
would not necessarily disclose all matters in the
internal control structure that might be material
weaknesses under standards established by the American
Institute of Certified Public Accountants. A material
weakness is a condition in which the design or
operation of the specific internal control structure
elements does not reduce to a relatively low level the
risk that errors or irregularities in amounts that
would be material in relation to the financial
statements being audited may occur and not be detected
within a timely period by employees in the normal
course of performing their assigned functions.
However, we noted no matters involving the internal
control structure, including procedures for
safeguarding securities, that we consider to be
material weaknesses, as defined above, as of August 31,
1999.
This report is intended solely for the information and
use of management and the Securities and Exchange
Commission, and should not be used for any other
purpose.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
October 1, 1999
