KOBRICK INVESTMENT TRUST, N-30D, 1999-11-08

KOBRICK INVESTMENT TRUST
N-30D, 1999-11-08

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ANNUAL REPORT
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[LOGO]
NEW ENGLAND FUNDS(R) Kobrick funds [LOGO]
Where The Best Minds Meet(R) IT'S ALL ABOUT VISION(SM)
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Kobrick Capital Fund
Kobrick Emerging Growth Fund
Kobrick Growth Fund

Where
The Best
Minds
Meet(R)

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Annual Report -- September 30, 1999
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TABLE OF CONTENTS
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Annual Report September 30, 1999
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President's Message ....................................................... 1
Portfolio Managers Commentary and Performance
Kobrick Capital Fund ................................................. 2
Kobrick Emerging Growth Fund ......................................... 4
Kobrick Growth Fund .................................................. 6
Schedules of Investments
Kobrick Capital Fund ................................................. 8
Kobrick Emerging Growth Fund ......................................... 10
Kobrick Growth Fund .................................................. 12
Financial Statements
Statements of Assets and Liabilities ................................. 14
Statements of Operations ............................................. 15
Statements of Changes in Net Assets .................................. 16
Financial Highlights ................................................. 17
Notes to Financial Statements ............................................. 18
Report of Independent Accountants ......................................... 23

Effective November 1, 1999, the Kobrick Funds are authorized to issue multiple
classes of shares. The Funds will offer shares of Class A, B, C and Y through
its distributor, New England Funds, L.P.

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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
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KOBRICK FUNDS
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[PICTURE OF FREDERICK R. KOBRICK]

Frederick R. Kobrick
President and
Chief Executive Officer,
Kobrick Funds LLC

"With inflation still historically low, growth healthy, and corporate earnings
fears misplaced, we view this as a very healthy backdrop to the markets for the
coming year"

President's Message October 21, 1999
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Dear Fellow Shareholder:

We are pleased to report the investment results for the year ended September 30,
1999, for our three funds: Kobrick Capital Fund, Kobrick Emerging Growth Fund
and Kobrick Growth Fund. The past twelve months have been a very exciting and
challenging period for us, providing us with a great sense of enthusiasm towards
what the future holds in store. Highlights of the period included:

. In the market, we saw the Dow recover from its low last October to break
through the 10,000 and 11,000 levels, yet market volatility remained a
constant.

. In July, we joined forces with Nvest Companies to combine our strong
investment performance with Nvest's broad distribution capabilities and other
resources. I believe this will provide greater opportunities for various types
of investors to invest in our funds and enhance our service offerings to all
investors.

. Also in July, we were pleased to have named Michael Nance as portfolio
manager of Kobrick Growth Fund. Michael joined us from Putnam Investments,
where he managed more than $12 billion in assets.

We believe our funds performed extremely well during the past twelve months:
Kobrick Capital Fund was up +60.7%, Kobrick Emerging Growth Fund was up +63.1%
and Kobrick Growth Fund was up +49.3% (all at net asset value).

For most of 1999, most stocks experienced a broad bear market, actually more of
a "stealth" bear market because indices had not dropped 20% (characteristic of a
real bear market). The reason is that institutions, having very high liquidity,
needed to invest cash in large companies. This classic flight to quality has
seen a significant amount of money flow to 40 or 50 equities that have held up
the Dow Jones Industrials and the S&P 500. However, investing during this period
has not always been into the same 40 or 50 companies, and many of the classic
blue chips like Disney and Coca Cola have been replaced by a new breed of
technology companies including EMC Corp. and Sun Microsystems. For perspective,
in early October 1999, 41% of all issues on the New York Stock Exchange were
below their October 1998 lows. Also, the average NYSE stock had fallen by 27%
from its high, and the average S&P 500 and NASDAQ stock had fallen by 25% and
36%, respectively.

With inflation still historically low, growth healthy, and corporate earnings
fears misplaced (86% of S&P companies have recently met or exceeded earnings
expectations), we view this as a very healthy backdrop to the markets for the
coming year. We view the stealth bear market as nearing its end and we see a
broader bull market resulting, characterized by a wide array of issues
undergoing powerful advances.

I appreciate your confidence by investing with us and look forward to sharing
with you our continued successes.

Very truly yours,

/s/ Frederic R. Kobrick

Frederick R. Kobrick
President and Chief Executive Officer,
Kobrick Funds LLC

1
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KOBRICK CAPITAL FUND
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Portfolio Profile
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Objective: Maximum capital appreciation
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Strategy: Invests primarily in equity securities of companies with small, medium
and large capitalizations.
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Inception Date: December 31, 1997
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Manager: Frederick R. Kobrick
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Symbol: KFCFX
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Net Asset Value: (9/30/99) $17.21
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Questions & Answers with Your Portfolio Manager
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Kobrick Capital Fund
[PICTURE OF FREDERICK R. KOBRICK APPEARS HERE]

Frederick R. Kobrick
President and Chief Executive Officer,
Kobrick Funds LLC,
Portfolio Manager,
Kobrick Capital Fund

Q. How did Kobrick Capital Fund perform during the 12 months ended September 30,
1999?

Capital Fund had a terrific year in a market that was extremely volatile. For
the fiscal year ended September 30, 1999, Capital Fund posted a return of 60.7%
(at net asset value), significantly better than the 26.3% return of the Russell
3000 Stock Index. The Fund had an average annual total return of 36.4% (at net
asset value) since its inception on December 31, 1997, which was more than
double the 15.7% average for the index for the same period. Kobrick Capital
Fund's results were also well above the average of mutual funds with similar
objectives. (See illustration next page.)

Q. What contributed to the strong performance of Kobrick Capital Fund?

We continued to apply the same buy and sell disciplines that I have used during
my 28-year investment career. This means that in addition to focusing on
traditional factors such as a company's financial information and products, I
place a heavy emphasis on the ability of the company's management to execute its
strategy. This approach helps to distinguish strong and emerging companies from
the rest of the pack.

Q. What was your investment strategy during this volatile market?

We centered the bulk of the securities in Capital Fund on mid-cap stocks, but we
also have what we call "tails" in emerging growth and some bigger companies. We
did not maintain a particularly large concentration in Internet and software
companies (although most of the companies we owned did quite well for the Fund),
but rather maintained a diversified portfolio that included Internet derivative
plays in the semiconductor and networking industries and companies that were
fueled by a healthy economy and consumer demand, including specialty retail and
business services. Ultimately, we are "bottom-up" stock pickers, focusing on
individual companies -- not sectors. We will add to the portfolio those
companies that meet our buy disciplines, even if they are not industries that
are perceived as "hot" in the eyes of the average investor.

Q. What is your outlook for the year ahead?

During 1999, a handful of large companies drove up the indexes while most other
companies experienced a bear market -- a "stealth" bear market. For example, as
of October 1 of this year, 72.8% of the companies in the S&P 500 and 85.4% of
those listed on the Nasdaq had fallen more than 20% from their highs. This
creates tremendous buying opportunities for good stock pickers. I expect this
stealth bear market to give way to a broader bull market encompassing a wide
array of all capitalizations. In this scenario, instead of a narrow band of blue
chips and other leadership issues, the market would be characterized by strong
moves in many small-, medium- and large-cap equities. I believe leadership could
come from the telecommunications, software and consumer sectors. From the
media's perspective, this may be a "boring" bull market because we might see the
Dow up only modestly while the real action focuses on the rest of the market.
Overall, we think inflation will stay low and corporate earnings will continue
to grow at a moderate, healthy pace -- a positive environment for Kobrick
Capital Fund and its shareholders.

2
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KOBRICK CAPITAL FUND
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Investment Results Through September 30, 1999
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Putting Performance in Perspective

The chart comparing your Fund's performance to a benchmark index provide you
with a general sense of how your Fund performed. To put this information in
context, it may be helpful to understand the differences between the two. Your
Fund's total return for the period shown below reflects Fund expenses and
management fees. A securities index measures the performance of a theoretical
portfolio. Unlike a fund, the index is unmanaged and does not have expenses that
affect the results. It is not possible to invest directly in an index. In
addition, few investors could purchase all of the securities necessary to match
the index and would incur transaction costs and other expenses even if they
could. Your Fund's benchmark is the Russell 3000 Index.

Growth of a $10,000 Investment in the Fund
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December 31, 1997 through September 30, 1999

[GRAPH]

Kobrick Capital Russell 3000

12/31/97 10,000 10,000
1/31/98 10,180 10,052
2/28/98 11,280 10,771
3/31/98 11,520 11,305
4/30/98 11,890 11,416
5/31/98 11,320 11,134
6/30/98 12,410 11,510
7/31/98 12,090 11,301
8/31/98 9,830 9,569
9/30/98 10,710 10,222
10/31/98 11,580 10,998
11/30/98 12,940 11,671
12/31/98 15,000 12,413
1/31/99 17,560 12,835
2/28/99 16,280 12,381
3/31/99 17,740 12,835
4/30/99 18,220 13,414
5/31/99 16,740 13,159
6/30/99 17,990 13,824
7/31/99 17,410 13,405
8/31/99 17,410 13,252
9/30/99 17,250 12,913

Average Annual Total Returns -- 9/30/99
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Since Fund's
Kobrick Capital Fund (Inception 12/31/97) 1 Year Inception
Net Asset Value1 60.7% 36.4%

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Since Fund's
Comparative Performance 1 Year Inception
Russell 3000 Index2 26.3% 15.7%
Lipper Capital Appreciation Fund Average3 35.3 17.1
Morningstar Mid Cap Growth Fund Average4 44.0 17.3
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Notes

The illustration and the returns in the Average Annual Total Return table above
represent past performance of the Fund and cannot predict future results.
Investment return and principal value may vary so that shares, upon redemption,
may be worth more or less than original cost, resulting in a gain or loss on the
sale of shares. All index and Fund performance assumes reinvestment of
distributions.

1 Net Asset Value (NAV) performance assumes reinvestment of all distributions
and does not reflect a sales charge. The Fund waived certain fees and
expenses during the period shown and performance would have been lower if
these fees hadn't been waived.

2 Russell 3000 Index is an unmanaged index measuring the stock price
performance of the 3,000 largest U.S. companies based on total market
capitalization. The performance of the index has not been adjusted for
ongoing management, distribution and operating expenses applicable to mutual
fund investments. It is not possible to invest directly in an index.

3 Lipper Capital Appreciation Fund Average is an average (calculated on the
basis of net asset value) of funds with similar investment objectives as
calculated by Lipper Inc., an independent mutual fund ranking service.

4 Morningstar Mid Cap Growth Fund Average is an average (calculated on the
basis of net asset value) of funds with similar investment objectives as
calculated by Morningstar, Inc., an independent mutual fund ranking service.

The portfolio manager's commentary reflects conditions and actions taken during
the reporting period which are subject to change. A shift in opinion may result
in strategic and other portfolio changes. Small capitalization and emerging
growth stocks are generally more sensitive to market movements, and are subject
to limited markets and less liquidity than larger, more established companies.
See the Fund's prospectus for details.

Portfolio Characteristics at 9/30/99
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% of
Your Fund's Composition Net Assets
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Common Stocks 94.8
Short Term Investments and Other 5.2
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% of
Your Fund's Ten Largest Holdings Net Assets
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Tyco International, Ltd. 3.2
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Integrated Device Technology 3.1
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Waters Corp. 3.1
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Intel Corp. 3.0
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National Semiconductor Corp. 2.8
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CMGI, Inc. 2.6
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Priceline.com, Inc. 2.6
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Applied Materials, Inc. 2.5
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QUALCOMM, Inc. 2.4
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Yahoo!, Inc. 2.4
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Growth of a $10,000 Investment in the Fund

December 31, 1997 through September 30, 1999

% of
Your Fund's Five Largest Industries Net Assets
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Semiconductor - Electronics 21.5
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Internet 8.4
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Computer Software 7.8
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Semiconductor - Equipment 6.6
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Broadcast Media 5.9
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Portfolio holdings and asset allocations will vary.

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3
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KOBRICK EMERGING GROWTH FUND
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Portfolio Profile
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Objective: Provide growth of capital
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Strategy: Invests primarily in equity securities of emerging growth companies
with emphasis on companies with small capitalizations.
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Inception Date: December 31, 1997
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Manager: Frederick R. Kobrick
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Symbol: KFEGX
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Net Asset Value
(9/30/99): $16.54
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Questions & Answers with Your Portfolio Manager
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Kobrick Emerging Growth Fund
[PICTURE OF FREDERICK R. KOBRICK]
Frederick R. Kobrick
President and Chief
Executive Officer, Kobrick
Funds LLC and Portfolio
Manager, Kobrick Emerging
Growth Fund

Q. How did Kobrick Emerging Growth Fund perform during the 12 months ended
September 30, 1999?

In a difficult year for small-cap companies, Emerging Growth Fund performed
extremely well. For the year ended September 30, 1999, the Fund's total return
was 63.1% (at net asset value), which was more than three times the 19.1% return
on its benchmark index, the Russell 2000. Since inception on December 31, 1997,
the Fund's average annual total return was 33.3% (at net asset value), in stark
contrast to the Russell 2000, which was essentially flat for the same period.
Kobrick Emerging Growth Fund's results were also well above the average of
mutual funds with similar objectives. (See illustration next page.)

Q. How was the Fund able to do so well in a difficult market?

It was a strenuous period for most equity fund managers, particularly for small-
cap funds, because the averages (heavily weighted and influenced by around 20
stocks) kept going up while the broader market was trending down. As part of an
overall flight to quality during most of the past year, investor demand for the
large, blue-chip stocks that dominate the major stock market indices was high,
driving up prices of a relatively few big-name stocks. We performed well by
digging deeper than most other funds to find emerging companies with compelling
valuations, high growth potential and management able to execute the company
strategy. Although we are bottom-up stock pickers looking for specific companies
and not hot industries, we found many of these companies in industries such as
software and business services.

Q. Are many of the companies in the Fund's portfolio active internationally?

Everything is globalized now, from high-tech, nationally known players like
Intel or Sony, to small retailers like Ann Taylor. Almost every company today is
either selling globally, sourcing globally or competing globally . . . or some
combination of those three. You won't find companies in the Fund's portfolio
that have domestic myopia.

Q. What's your outlook for small-cap stocks in the coming year?

I think the outlook is very good because the economy should continue to grow at
a moderate, healthy pace worldwide. Stock market volatility has become endemic,
as high-speed electronic communications continue to shrink the globe. But I also
think the secular bull market that has been in progress for most of the past
decade will broaden to include small- and mid-cap issues -- a long overdue
development that should benefit Kobrick Emerging Growth Fund shareholders.

Q. Will this healthy environment be concentrated in any industry?

Certainly technology, not just the Internet, will continue to be a major force
in the market. But as you can see from the diversity of Emerging Growth Fund's
top holdings, we are looking for strong companies in a variety of industries to
lead the way.

4
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KOBRICK EMERGING GROWTH FUND
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Investment Results Through September 30, 1999
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Putting Performance in Perspective

Growth of a $10,000 Investment in the Fund
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December 31, 1997 through September 30, 1999

[GRAPH]

Kobrick Emerging Russell 2000

12/31/97 10,000 10,000
1/31/98 10,260 9,842
2/28/98 11,330 10,569
3/31/98 11,700 11,005
4/30/98 12,050 11,065
5/31/98 11,490 10,469
6/30/98 12,560 10,491
7/31/98 11,920 9,641
8/31/98 9,350 7,769
9/30/98 10,140 8,377
10/31/98 10,560 8,719
11/30/98 12,440 9,176
12/31/98 13,950 9,744
1/31/99 15,310 9,873
2/28/99 13,960 9,074
3/31/99 15,180 9,215
4/30/99 15,770 10,041
5/31/99 15,420 10,187
6/30/99 16,720 10,648
7/31/99 16,660 10,356
8/31/99 16,500 9,973
9/30/99 16,540 9,975

Average Annual Total Returns -- 9/30/99
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Since Fund's
Kobrick Emerging Growth Fund (Inception 12/31/97) 1 Year Inception
Net Asset Value1 63.1% 33.3%
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Since Fund's
Comparative Performance 1 Year Inception
Russell 2000 Index2 19.1% -0.1%
Lipper Small Company Fund Average3 26.9 2.8
Morningstar Small Cap Growth Fund Average4 45.0 11.5
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Notes to Charts

2 Russell 2000 Index is an unmanaged index measuring the stock price
performance of 2000 small capitalization U.S. stocks and is a commonly used
index of U.S. small stock performance. The performance of the index has not
been adjusted for ongoing management, distribution and operating expenses
applicable to mutual fund investments.

3 Lipper Small Company Fund Average is an average (calculated on the basis of
net asset value) of funds with similar investment objectives as calculated by
Lipper Inc., an independent mutual fund ranking service.

4 Morningstar Small Cap Growth Fund Average is an average (calculated on the
basis of net asset value) of funds with similar investment objectives as
calculated by Morningstar, Inc., an independent mutual fund ranking service.

Portfolio Characteristics at 9/30/99
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% of
Your Fund's Composition Net Assets
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Common Stocks 92.6
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Short Term Investments and Other 7.4
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% of
Your Fund's Ten Largest Holdings Net Assets
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Hambrecht & Quist Group, Inc. 3.4
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Gerald Stevens, Inc. 3.3
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Brocade Communications Systems, Inc. 3.2
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Exchange Applications, Inc. 3.0
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Exodus Communications, Inc. 2.9
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AppNet Systems, Inc. 2.8
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P-Com, Inc. 2.8
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Waters Corp. 2.7
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MiniMed, Inc. 2.7
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Ann Taylor Stores Corp. 2.6
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Growth of a $10,000 Investment in the Fund

December 31, 1997 through September 30, 1999

% of
Your Fund's Five Largest Industries Net Assets
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Semiconductor - Electronics 14.5
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Computer Software 10.2
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Services - Commercial & Consumer 7.7
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Retail - Specialty 6.8
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Broadcast Media 6.1
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Portfolio holdings and asset allocations will vary.
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5
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KOBRICK GROWTH FUND
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Portfolio Profile
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Objective: Provide long-term growth of capital
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Strategy: Invests primarily in equity securities of companies with large
capitalizations, which the fund manager believes have better than average long-
term growth potential.
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Inception Date: September 1, 1998
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Manager: Michael E. Nance
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Symbol: KFGRX
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Net Asset Value: (9/30/99) $15.41
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Questions & Answers with Your Portfolio Manager
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Kobrick Growth Fund

[PICTURE OF MICHAEL E. NANCE]

Michael E. Nance
Senior Vice President
Kobrick Funds LLC, and
Portfolio Manager,
Kobrick Growth Fund

Q. How did Kobrick Growth Fund perform during the 12 months ended September 30,
1999?

Kobrick Growth Fund had a strong year despite the volatility in the overall
market. The Fund's total return for fiscal 1999 was 49.3% (at net asset value),
significantly outpacing the 27.8% return on the S&P 500 Stock Index. Since
inception on September 1, 1998, the Fund's average annual total return was 49.1%
(at net asset value), also better than the index's 32.9%. The Fund's results
were also substantially above the average for comparable funds. (See
illustration next page.)

Q. How was the Fund able to outperform the Standard & Poor's 500 when so many
other funds have difficulty just matching it?

First, we have a systematic approach to investing and we stuck to that
discipline through what was a period of historically high levels of market
volatility. Second, we leverage the core discipline by positioning the Fund in
stocks and sectors of the S&P 500 where the market had failed to see the future
growth potential. For example, this year will be remembered for the continued
explosive growth of the Internet (with Internet traffic doubling every 100 days)
and an insatiable demand for bandwidth. Since I took charge of the portfolio
this summer, we've concentrated on companies that are derivative to these
industries. We selected companies staking their claim as "broadband" service
providers offering combinations of basic and long distance phone service, data
transmission, Internet, cable TV, interactive movies . . . anything you can
transmit into homes or offices with a wire or wireless signal. Two of the
largest holdings in the Growth Fund are Sprint FON Group and Sprint PCS Group,
which will offer the full array of wire and wireless broadband services to
millions of customers.

Q. What do you look for in companies offering wireless technology?

We look for the three "Cs" that we believe will be responsible for this sector's
next growth spurt: cost, coverage and connectivity. Cost is going down --
wireless rates are now comparable to traditional wireline long distance, so
companies that bundle services will have a competitively priced package.
Coverage is critical --customers want to use their cellular phones and PCs
wherever they go. Connectivity will give more consumers access to these
technologies. As early as this Christmas, you'll be able to have an Internet
browser on your wireless phone, enabling you to download sports scores or
traffic updates. And the handset will cost around $100.

Q. You mentioned an investment discipline. What do you mean by that?

We emphasize companies with superior management, potential for high earnings
growth and cash flow, as well as compelling valuations. We also look for a
catalyst -- a fundamental, organizational or structural event that will get the
market to share our perception of the stock's potential. A catalyst can be as
obvious as a positive earnings surprise, or more subtle, like a change in
distribution channels. Our sell-side disciplines are basically the same, but in
reverse. We will generally sell a stock if there is a change in the company's
management or strategy, the company fails to execute its strategy or when its
target price, which is continuously evaluated is reached. Also, if it became
clear that the catalyst I had expected to occur appeared unlikely to
materialize, that would also raise a red flag.

Q. What's your outlook for growth stocks in the coming year?

Companies able to demonstrate superior earnings growth should do well for long-
term investors in most market scenarios, as long as they're purchased at a good
price and held for as long as their projected growth rates justify their
valuations. Our overall outlook is positive because we believe the economy
should continue to grow at a moderate, healthy pace worldwide, and that
inflation does not pose an imminent threat.

6
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KOBRICK GROWTH FUND
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Investment Results Through September 30, 1999
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Putting Performance in Perspective

Growth of a $10,000 Investment in the Fund
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[GRAPH]

Kobrick Growth S&P 500 Index

10,000 10,000
9/30/98 10,320 10,638
10/31/98 11,130 11,504
11/30/98 12,100 12,202
12/31/98 13,762 12,905
1/31/99 15,763 13,445
2/28/99 14,572 13,026
3/31/99 15,473 13,547
4/30/99 15,713 14,072
5/31/99 14,742 13,740
6/30/99 15,463 14,504
7/31/99 15,153 14,050
8/31/99 14,983 13,981
9/30/99 15,413 13,598

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Average Annual Total Returns -- 9/30/99
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Since Fund's
Kobrick Growth Fund (Inception 9/1/98) 1 Year Inception
Net Asset Value1 49.3% 49.1%
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Since Fund's
Comparative Performance 1 Year Inception
S&P 500 Index2 27.8% 32.9%
Lipper Growth Fund Average3 30.3 35.0
Morningstar Large Cap Growth Fund Average4 37.0 42.3
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Notes to Charts

2 The Standard & Poor's Composite Index of 500 Stocks (S&P 500(R)) is a market
value-weighted unmanaged index of common stock prices. It is a common measure
of stock total return performance. The performance of the index has not been
adjusted for ongoing management, distribution and operating expenses
applicable to mutual fund investments. Since inception return calculated from
8/31/98.

3 Lipper Growth Fund Average is an average (calculated on the basis of net
asset value) of funds with similar investment objectives as calculated by
Lipper Inc., an independent mutual fund ranking service. Since inception
return calculated from 8/31/98.

4 Morningstar Large Cap Growth Fund Average is an average (calculated on the
basis of net asset value) of funds with similar investment objectives as
calculated by Morningstar, Inc., an independent mutual fund ranking service.
Since inception return calculated from 8/31/98.

Portfolio Characteristics at 9/30/99
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% of
Your Fund's Composition Net Assets
- --------------------------------------------------------------------------------
Common Stocks 93.1
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Short Term Investments and Other 6.9
- --------------------------------------------------------------------------------

% of
Your Fund's Ten Largest Holdings Net Assets
- --------------------------------------------------------------------------------
Tyco International, Ltd. 9.8
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Sprint Corp. (FON Group) 3.9
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Firstar Corp. 3.9
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Computer Associates International, Inc. 3.9
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Providian Financial Corp. 3.8
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Sprint Corp. (PCS Group) 3.7
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Vodaphone AirTouch PLC 3.4
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Comcast Corp. 3.4
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AT&T Corp. - Liberty Media Corp. 3.0
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General Instrument Corp. 2.8
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Growth of a $10,000 Investment in the Fund

September 1, 1998 through September 30, 1999

% of
Your Fund's Five Largest Industries Net Assets
- --------------------------------------------------------------------------------
Broadcast Media 10.6
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Manufacturer - Diversified 9.8
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Telecommunications - Cellular 9.1
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Computer Software 7.3
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Semiconductor - Equipment 6.1
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Portfolio holdings and asset allocations will vary.
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7
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KOBRICK CAPITAL FUND -- SCHEDULE OF INVESTMENTS
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Investments as of September 30, 1999

Investments -- 102.5% of Total Net Assets

Description Shares Value (a)
- --------------------------------------------------------------------------------

COMMON STOCKS -- 94.8%
AEROSPACE/DEFENSE -- 1.9%
Boeing Co. ............................................ 44,800 $1,909,600
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BROADCAST MEDIA -- 5.9%
CBS Corp. (c) ......................................... 40,200 1,859,250
Citadel Communications Corp. (c) ...................... 4,300 146,738
Entercom Communications Corp. (c) ..................... 41,500 1,494,000
Insight Communications Co., Inc. Class A (c) .......... 7,800 223,275
MediaOne Group, Inc. (c) .............................. 14,900 1,017,856
Wink Communications, Inc. (c) ......................... 30,300 1,323,731
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6,064,850
----------

CHEMICALS-SPECIALTY -- 3.1%
Waters Corp. (c) ...................................... 52,300 3,167,419
----------

COMMUNICATION-EQUIPMENT -- 2.4%
QUALCOMM, Inc. ........................................ 13,300 2,516,194
----------

COMPUTER HARDWARE -- 5.6%
Apple Computer, Inc. (c) .............................. 36,400 2,304,575
Dell Computer Corp. (c) ............................... 50,200 2,098,987
Sun Microsystems, Inc. (c) ............................ 14,700 1,367,100
----------
5,770,662
----------

COMPUTER SOFTWARE -- 7.8%
Computer Associates International, Inc. ............... 38,400 2,352,000
Digital Insight Corp. (c) ............................. 800 12,000
Mission Critical Software, Inc. (c) ................... 21,600 961,200
NetScout Systems, Inc. (c) ............................ 17,800 381,587
Oracle Corp. (c) ...................................... 54,400 2,475,200
Red Hat, Inc. (c) ..................................... 1,000 96,000
Symantec Corp. (c) .................................... 46,500 1,672,547
Vitria Technology, Inc. (c) ........................... 2,500 91,875
----------
8,042,409
----------

COMPUTERS-NETWORKING -- 2.6%
Brocade Communications Systems, Inc. (c) .............. 5,200 1,092,000
Extreme Networks, Inc. (c) ............................ 23,600 1,494,175
Foundry Networks, Inc. (c) ............................ 800 100,800
Internap Network Services Corp. (c) ................... 800 35,700
----------
2,722,675
----------

Description Shares Value (a)
- --------------------------------------------------------------------------------

FINANCIAL (DIVERSIFIED) -- 0.6%
Mortgage.com, Inc. (c) ................................ 70,900 $ 682,413
----------

FOOTWARE -- 2.4%
NIKE, Inc. Class B .................................... 43,500 2,474,062
----------

HEALTHCARE-DIVERSIFIED -- 0.6%
Women First Healthcare, Inc. (c) ...................... 82,900 585,481
----------

INTERNET -- 8.4%
America Online, Inc. ................................ 23,000 2,392,000
Inktomi Corp. (c) ................................... 8,200 984,256
RealNetworks, Inc. (c) .............................. 15,700 1,641,631
theglobe.com, inc. (c) .............................. 68,500 937,594
Webstakes.com, Inc. (c) ............................. 16,100 142,888
Yahoo!, Inc. (c) .................................... 14,000 2,513,000
---------
8,611,369
---------

LEISURE TIME PRODUCTS -- 1.2%
Royal Caribbean Cruises, Ltd. ....................... 26,400 1,188,000
---------

MANUFACTURER-DIVERSIFIED -- 3.2%
Tyco International, Ltd. ............................ 31,800 3,283,350
---------

OIL & GAS-DRILLING & EQUIPMENT -- 0.6%
Noble Drilling Corp. (c) ............................ 29,000 634,375
---------

OIL & GAS-EXPLORATION & PRODUCTION -- 3.9%
Chevron Corp. ....................................... 11,400 1,011,750
Grey Wolf, Inc. (c) ................................. 246,700 740,100
Newfield Exploration Co. (c) ........................ 32,100 1,057,294
Pride International, Inc. (c) ....................... 84,000 1,191,750
---------
4,000,894
---------

RESTAURANTS -- 0.1%
Rubio's Restaurants, Inc. (c) ....................... 7,400 63,825
---------

RETAIL-APPAREL -- 1.9%
AnnTaylor Stores Corp. (c) .......................... 48,200 1,970,175
---------

8
<PAGE>

- --------------------------------------------------------------------------------

KOBRICK CAPITAL FUND -- SCHEDULE OF INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------

Investments as of September 30, 1999

Investments -- continued

Description Shares Value (a)
- --------------------------------------------------------------------------------
RETAIL-SPECIALTY -- 5.7%
AutoNation, Inc. (c) ................................... 66,000 $ 829,125
Gerald Stevens, Inc. (c) ............................... 95,100 1,331,400
Priceline.com, Inc. (c) ................................ 41,400 2,670,300
Tweeter Home Entertainment Group, Inc. (c) ............. 27,900 1,042,762
------------
5,873,587
------------

SEMICONDUCTOR-ELECTRONICS -- 21.5%
Analog Devices, Inc. (c) ............................... 34,500 1,768,125
Atmel Corp. (c) ........................................ 29,500 997,469
Conexant Systems, Inc. (c) ............................. 30,700 2,230,547
Cypress Semiconductor Corp. (c) ........................ 102,900 2,212,350
Dallas Semiconductor Corp. ............................. 31,900 1,704,656
Integrated Device Technology (c) ....................... 173,300 3,206,050
Intel Corp. ............................................ 41,400 3,076,537
LSI Logic Corp. (c) .................................... 27,900 1,436,850
National Semiconductor Corp. (c) ....................... 92,900 2,833,450
STMicroelectronics ..................................... 6,600 488,400
Vitesse Semiconductor Corp. (c) ........................ 25,100 2,142,913
------------
22,097,347
------------

SEMICONDUCTOR-EQUIPMENT -- 6.6%
Applied Materials, Inc. (c) ............................ 32,600 2,538,725
KLA-Tencor Corp. (c) ................................... 34,100 2,216,500
Lam Research Corp. (c) ................................. 32,400 1,976,400
Teradyne, Inc. Rights Callable through 3/26/2000 (c) ... 3,400 119,850
------------
6,851,475
------------

SERVICES-COMMERCIAL & CONSUMER -- 3.6%
CMGI, Inc. (c) ......................................... 26,500 2,716,250
MDC Corp., Inc. Class A (c) ............................ 93,400 974,862
------------
3,691,112
------------

TELECOMMUNICATIONS-CELLULAR -- 2.4%
Sprint Corp. (PCS Group) ............................... 33,500 2,497,844
------------

TELECOMMUNICATIONS-LONG DISTANCE -- 2.1%
Sprint Corp. (FON Group) ............................... 39,300 2,132,025
------------

WASTE MANAGEMENT -- 0.7%
Republic Services, Inc. Class A (c) .................... 65,100 707,963
------------

Total Common Stocks
(cost $92,673,189) ................................... 97,539,106
------------

Principal Amount
Description (000s) Value (a)
- --------------------------------------------------------------------------------

REPURCHASE AGREEMENT -- 7.7%
State Street Bank and Trust Co., 4.60%, dated 9/30/99,
to be repurchased for $7,951,012 on 10/1/99
(collateralized by U.S. Treasury Note 4.000%,
10/31/00, market value $8,110,000)
(cost $7,950,000) ...................................$ 7,950 $ 7,950,000
------------

TOTAL INVESTMENTS -- 102.5%
(cost $100,623,189) (b) .............................. 105,489,106
Other assets less liabilities -- (2.5%) ................ (2,610,071)
------------

NET ASSETS -- 100% ..................................... $102,879,035
============

(a) See Note 2 of Notes to Financial Statements.
(b) Federal Tax Information: At September 30, 1999 the net unrealized
appreciation on investments based on cost of $100,999,920 for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost ..................................... $ 8,121,007
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost
over value ........................................ (3,631,821)
------------
Net unrealized appreciation ........................ $ 4,489,186
============
(c) Non-income producing security.

See accompanying notes to financial statements. 9
<PAGE>

- --------------------------------------------------------------------------------

KOBRICK EMERGING GROWTH FUND -- SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------

Investments as of September 30, 1999

Investments -- 106% of Total Net Assets

Description Shares Value (a)
- --------------------------------------------------------------------------------

COMMON STOCKS -- 92.6%
BROADCAST MEDIA -- 6.1%
Citadel Communications Corp. (c) .................... 2,600 $ 88,725
Cumulus Media, Inc., Class A (c) .................... 33,200 1,085,225
Entercom Communications Corp. (c) ................... 36,900 1,328,400
Insight Communications Co., Inc., Class A (c) ....... 3,200 91,600
Wink Communications, Inc. (c) ....................... 14,100 615,994
----------
3,209,944
----------

CHEMICALS-SPECIALTY -- 2.7%
Waters Corp. (c) .................................... 23,600 1,429,275
----------

COMMUNICATION-EQUIPMENT -- 1.8%
CapRock Communications Corp. (c) .................... 22,500 523,125
Carrier Access Corp. (c) ............................ 10,500 439,031
----------
962,156
----------

COMMUNICATION-SOFTWARE/SERVICES -- 3.2%
Exodus Communications, Inc. (c) ..................... 21,000 1,513,312
Kana Communications, Inc. (c) ....................... 2,700 134,663
----------
1,647,975
----------

COMPUTER HARDWARE -- 2.6%
Advanced Digital Information Corp. (c) .............. 48,000 1,335,000
----------

COMPUTER SOFTWARE -- 10.2%
Broadbase Software, Inc. (c) ........................ 5,400 86,063
Digital Insight Corp. (c) ........................... 400 6,000
Epiphany, Inc. (c) .................................. 5,500 268,125
Exchange Applications, Inc. (c) ..................... 53,300 1,549,031
Mission Critical Software, Inc. (c) ................. 9,800 436,100
NetScout Systems, Inc. (c) .......................... 8,100 173,644
Point of Sale, Ltd. (c) ............................. 64,100 729,137
Red Hat, Inc. (c) ................................... 500 48,000
Santa Cruz Operation, Inc. (c) ...................... 98,700 1,178,231
Symantec Corp. (c) .................................. 23,200 834,475
----------
5,308,806
----------

COMPUTERS-NETWORKING -- 4.8%
Brocade Communications Systems, Inc. (c) ............ 7,900 1,659,000
Extreme Networks, Inc. (c) .......................... 11,900 753,419
Foundry Networks, Inc. (c) .......................... 400 50,400
Internap Network Services Corp. (c) ................. 400 17,850
----------
2,480,669
----------

ELECTRICAL EQUIPMENT -- 1.3%
Jabil Circuit, Inc. (c) ............................. 14,200 $ 702,900
----------

FINANCIAL (DIVERSIFIED) -- 0.6%
Mortgage.com, Inc. (c) .............................. 32,100 308,963
----------

FOODS -- 0.9%
Keebler Foods Co. (c) ............................... 16,300 486,963
----------

HEALTHCARE-DIVERSIFIED -- 0.5%
Women First Healthcare, Inc. (c) .................... 36,400 257,075
----------

HEALTHCARE-DRUGS MAJOR -- 0.7%
AmeriSource Health Corp. Class A (c) ................ 14,800 350,575
----------

HEALTHCARE-MANAGED CARE -- 0.9%
Trigon Healthcare, Inc. (c) ......................... 16,800 485,100
----------

INTERNET -- 4.9%
Audible, Inc. (c) ................................... 20,000 210,000
Inktomi Corp. (c) ................................... 4,100 492,128
RealNetworks, Inc. (c) .............................. 13,000 1,359,312
theglobe.com, inc. (c) .............................. 32,700 447,581
Webstakes.com, Inc. (c) ............................. 7,900 70,113
----------
2,579,134
----------

INVESTMENT BANK/BROKERAGE -- 3.4%
Hambrecht & Quist Group, Inc. (c) ................... 35,800 1,751,962
----------

MEDICAL PRODUCTS & SUPPLIES -- 2.7%
MiniMed, Inc. (c) ................................... 14,400 1,414,800
----------

OIL & GAS-REFINING & MARKETING -- 1.7%
Marine Drilling Co., Inc. (c) ....................... 55,100 871,269
----------

OIL & GAS-EXPLORATION & PRODUCTION-- 4.3%
Grey Wolf, Inc. (c) ................................. 112,100 336,300
Newfield Exploration Co. (c) ........................ 22,200 731,212
Pride International, Inc. (c) ....................... 39,000 553,313
Transocean Offshore, Inc. ........................... 20,700 633,937
----------
2,254,762
----------

10 See accompanying notes to financial statements.
<PAGE>

- --------------------------------------------------------------------------------

KOBRICK EMERGING GROWTH FUND -- SCHEDULE OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------

Investments as of September 30, 1999

Investments -- continued

Description Shares Value (a)
- --------------------------------------------------------------------------------

RESTAURANTS -- 0.1%
Rubio's Restaurants, Inc. (c) .................... 3,300 $ 28,463
-----------

RETAIL-APPAREL -- 2.6%
AnnTaylor Stores Corp. (c) ....................... 33,300 1,361,137
-----------

RETAIL-SPECIALTY -- 6.8%
AutoNation, Inc. (c) ............................. 30,200 379,388
Blockbuster, Inc. (c) ............................ 24,400 311,100
Gerald Stevens, Inc. (c) ......................... 124,400 1,741,600
garden.com, Inc. (c) ............................. 7,500 141,563
Tweeter Home Entertainment Group, Inc. (c)........ 25,500 953,062
-----------
3,526,713
-----------

SEMICONDUCTOR-ELECTRONICS -- 14.5%
Atmel Corp. (c) .................................. 19,700 666,106
Cypress Semiconductor Corp. (c) .................. 48,200 1,036,300
Dallas Semiconductor Corp. ....................... 14,500 774,844
Integrated Device Technology (c) ................. 60,900 1,126,650
Lattice Semiconductor Corp. (c) .................. 25,500 757,031
Maxim Integrated Products, Inc. (c) .............. 21,200 1,337,587
National Semiconductor Corp. (c) ................. 31,300 954,650
Vitesse Semiconductor Corp. (c) .................. 10,800 922,050
-----------
7,575,218
-----------

SEMICONDUCTOR-EQUIPMENT -- 4.8%
Applied Materials, Inc. (c) ...................... 6,900 537,338
KLA-Tencor Corp. (c) ............................. 15,200 988,000
Lam Research Corp. (c) ........................... 16,300 994,300
-----------
2,519,638
-----------

SERVICES -COMMERCIAL & CONSUMER-- 7.7%
AppNet Systems, Inc. (c) ......................... 54,200 1,483,725
Concord EFS, Inc. (c) ............................ 32,850 677,531
CSG Systems International, Inc. (c) .............. 18,900 517,978
MDC Corp., Inc. Class A (c) ...................... 41,600 434,200
The Pathways Group, Inc. (c) ..................... 160,000 920,000
-----------
4,033,434
-----------

TELECOMMUNICATIONS-EQUIPMENT-- 2.8%
P-Com, Inc. (c) .................................. 205,300 1,437,100
-----------

Total Common Stocks
(cost $43,579,442) ............................... 48,319,031
-----------

REPURCHASE AGREEMENT -- 14.2%
State Street Bank and Trust Co., 4.60%,
dated 9/30/99, to be repurchased for
$7,411,947 on 10/1/99 (collateralized
by U.S. Treasury Note 6.125%, 9/30/00,
market value $7,562,625)
(cost $7,411,000) .............................. $ 7,411 $ 7,411,000
-----------

TOTAL INVESTMENTS -- 106.8%
(cost $50,990,442) (b) .................. 55,730,031
Other assets less liabilities -- (6.8%) .......... (3,555,341)
-----------
NET ASSETS -- 100% ............................... $52,174,690
===========

(a) See Note 2 of Notes to Financial Statements.
(b) Federal Tax Information: At September 30, 1999 the net unrealized
appreciation on investments based on cost of $51,267,125 for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost ......................................... $ 6,779,913
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost
over value ............................................ (2,317,007)
-----------
Net unrealized appreciation ............................ $ 4,462,906
===========
(c) Non-income producing security.

See accompanying notes to financial statements. 11
<PAGE>

- --------------------------------------------------------------------------------

KOBRICK GROWTH FUND -- SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------

Investments as of September 30, 1999

Investments -- 96.3% of Total Net Assets

Description Shares Value (a)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 93.1%
AEROSPACE/DEFENSE -- 0.9%
Allied Signal, Inc. ................................ 7,100 $ 425,556
----------

AIR FREIGHT -- 0.8%
Rockwell International Corp. ....................... 7,400 388,500
----------

ALUMINUM -- 0.9%
Reynolds Metals Co. ................................ 7,200 434,700
----------

BANKS-MAJOR REGIONAL -- 3.9%
Firstar Corp. ...................................... 70,638 1,810,099
----------

BROADCAST MEDIA -- 10.6%
Adelphia Communications Corp. Class A (c) .......... 7,600 446,975
AT&T Corp. (Liberty Media Group) Class A (c) ....... 38,300 1,421,887
Citadel Communications Corp. (c) ................... 17,300 590,363
Comcast Corp. Class A .............................. 15,200 548,150
Comcast Corp. Class A SpL .......................... 25,800 1,028,775
Cumulus Media, Inc. Cl. A (c) ...................... 24,700 807,381
Insight Communications Co., Inc. Cl. A (c) ......... 3,400 97,325
----------
4,940,856
----------

COMMUNICATION-EQUIPMENT -- 5.6%
Carrier Access Corp. (c) ........................... 17,700 740,081
General Instrument Corp. (c) ....................... 27,400 1,318,625
QUALCOMM, Inc. ..................................... 2,900 548,644
----------
2,607,350
----------

COMPUTER HARDWARE -- 1.0%
Sanmina Corp. (c) .................................. 6,000 464,250
----------

COMPUTER SOFTWARE -- 7.3%
BMC Software, Inc. (c) ............................. 3,500 250,469
Computer Associates International, Inc. ............ 29,500 1,806,875
Microsoft Corp. (c) ................................ 5,000 452,812
Oracle Corp. (c) ................................... 20,300 923,650
----------
3,433,806
----------

COMPUTERS-NETWORKING -- 0.1%
Foundry Networks, Inc. (c) ......................... 300 37,800
----------

CONSUMER FINANCE -- 3.8%
Providian Financial Corp. .......................... 22,700 $1,797,556
----------

CONTAINERS & PACKAGING -- 1.0%
Sealed Air Corp. (c) ............................... 8,700 446,419
----------

ELECTRICAL EQUIPMENT -- 0.9%
Flextronics International, Ltd. (c) ................ 7,200 418,950
----------

ENTERTAINMENT -- 1.6%
SFX Entertainment, Inc. Class A (c) ................ 25,100 765,550
----------

FOODS -- 1.7%
Keebler Foods Co. (c) .............................. 7,500 224,063
Quaker Oats Co. .................................... 9,500 587,812
----------
811,875
----------

HOUSEHOLD FURNITURE & APPLIANCES -- 1.0%
Whirlpool Corp. .................................... 7,100 463,719
----------

MANUFACTURER-DIVERSIFIED -- 9.8%
Tyco International, Ltd. ........................... 44,679 4,613,112
----------

OIL & GAS-DRILLING & EQUIPMENT -- 4.4%
BJ Services Co. (c) ................................ 20,400 648,975
Global Marine Inc. (c) ............................. 26,200 430,663
Noble Drilling Corp. (c) ........................... 8,500 185,937
R&B Falcon Corp. (c) ............................... 31,200 409,500
Tuboscope, Inc. (c) ................................ 30,600 380,588
----------
2,055,663
----------

OIL & GAS-EXPLORATION & PRODUCTION -- 4.9%
Chevron Corp. ...................................... 4,900 434,875
Conoco, Inc. Class A ............................... 33,000 915,750
Royal Dutch Petroleum Co. (ADR) .................... 15,600 921,375
----------
2,272,000
----------

PAPER & FOREST PRODUCT -- 1.4%
Willamette Industries, Inc. ........................ 15,400 664,125
----------

RESTAURANTS -- 0.8%
Tricon Global Restaurants, Inc. (c) ................ 8,600 352,063
----------

12 See accompanying notes to financial statements.
<PAGE>

- --------------------------------------------------------------------------------

KOBRICK GROWTH FUND -- SCHEDULE OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------

Investments as of September 30, 1999

Investments -- continued

Description Shares Value (a)
- --------------------------------------------------------------------------------

RETAIL-SPECIALTY -- 0.9%
Blockbuster, Inc. (c) ................................ 32,200 $ 410,550
----------

SEMICONDUCTOR-ELECTRONICS -- 2.7%
Micron Technology, Inc. (c) .......................... 5,900 392,719
National Semiconductor Corp. (c) ..................... 27,900 850,950
----------
1,243,669
----------

SEMICONDUCTOR-EQUIPMENT -- 6.1%
Applied Materials, Inc. (c) .......................... 13,200 1,027,950
Novellus Systems, Inc. (c) ........................... 13,900 926,475
Teradyne, Inc. Rights Callable through 3/26/2000 (c).. 25,800 909,450
----------
2,863,875
----------

SERVICES-COMMERCIAL & CONSUMER -- 4.2%
Cendant Corp. (c) (d) ................................ 22,100 392,275
Electronic Data Systems Corp. ........................ 20,800 1,101,100
Viad Corp. ........................................... 16,400 483,800
----------
1,977,175
----------

TELECOMMUNICATIONS -CELLULAR -- 9.1%
Nextel Communications, Inc. Class A (c) .............. 14,100 956,156
Sprint Corp. (PCS Group) ............................. 23,100 1,722,394
Vodafone AirTouch plc ADR ............................ 6,700 1,592,925
----------
4,271,475
----------

TELECOMMUNICATIONS -LONG DISTANCE -- 3.9%
Sprint Corp. (FON Group) ............................. 34,100 1,849,925
----------

TELEPHONE -- 3.8%
Bell Atlantic Corp. .................................. 6,900 464,456
CTC Communications Corp. (c) ......................... 46,100 757,769
McLeodUSA, Inc. Class A (c) .......................... 13,400 570,337
----------
1,792,562
----------
Total Common Stocks
(cost $42,592,495) .......................... 43,613,180
----------

REPURCHASE AGREEMENT -- 3.2%
State Street Bank and Trust Co., 3.25%, dated 9/30/99,
to be repurchased for $1,476,133 on 10/1/99
(collateralized by U.S. Treasury Note 6.125%,
9/30/00, market value $1,507,500)
(cost $1,476,000) ........................... 1,476 $ 1,476,000
----------

TOTAL INVESTMENTS --96.3%
(cost $44,068,495) (b) ...................... 45,089,180
Other assets less liabilities -- 3.7% ................ 1,737,900
----------

NET ASSETS-- 100% .................................... $46,827,080
==========

(a) See Note 2 of Notes to Financial Statements.
(b) Federal Tax Information: At September 30, 1999 the net unrealized
appreciation on investments based on cost of $44,538,069 for federal
income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost ..................................... $ 2,268,626
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax
cost over value ................................... (1,717,515)
----------
Net unrealized appreciation ........................ $ 551,111
==========
(c) Non-income producing security.
(d) Affiliated company (Note 8).
ADR American Depositary Receipt.

See accompanying notes to financial statements. 13
<PAGE>

- --------------------------------------------------------------------------------

STATEMENTS OF ASSETS & LIABILITIES
- --------------------------------------------------------------------------------

September 30, 1999

<TABLE>
<CAPTION>
Kobrick Kobrick Kobrick
Capital Emerging Growth Growth
Fund Fund Fund
-------------- ------------ ------------
<S> <C> <C> <C>
ASSETS
Investments, at value (Note 2)
Securities (cost $92,673,189, $43,579,442 and $42,592,495, respectively)........ $ 97,539,106 $ 48,319,031 $ 43,613,180
Repurchase Agreement ........................................................... 7,950,000 7,411,000 1,476,000
Cash ............................................................................. 360,540 185,737 9,329
Dividends and interest receivable ................................................ 23,487 3,478 25,589
Receivable for securities sold ................................................... 8,028,097 6,957,218 4,565,785
Receivable for Fund shares sold .................................................. 2,808,938 1,422,100 502,500
Deferred organizational costs (Note 2) ........................................... 27,888 27,888 --
Prepaid expenses ................................................................. 3,082 2,370 94
------------ ------------ ------------
TOTAL ASSETS ............................................................ 116,741,138 64,328,822 50,192,477

LIABILITIES
Payable for securities purchased ................................................. 13,626,018 12,051,844 3,261,045
Payable for Fund shares redeemed ................................................. 60,288 4,322 29,213
Investment advisory fee payable (Note 3) ......................................... 72,810 26,179 5,709
Distribution fees payable (Note 6) ............................................... 22,560 10,803 9,503
Accounts payable and accrued expenses ............................................ 80,427 60,984 59,927
------------ ------------ ------------
TOTAL LIABILITIES ....................................................... 13,862,103 12,154,132 3,365,397
------------ ------------ ------------

NET ASSETS ......................................................................... $102,879,035 $ 52,174,690 $ 46,827,080
============ ============ ============

NET ASSETS CONSIST OF:
Paid-in capital .................................................................. $ 83,347,180 $ 39,179,043 $ 46,884,827
Undistributed (overdistributed) net investment income (loss) ..................... -- -- --
Accumulated net realized gain (loss) on investments .............................. 14,665,938 8,256,058 (1,078,432)
Net unrealized appreciation (depreciation) of investments ........................ 4,865,917 4,739,589 1,020,685
------------ ------------ ------------

NET ASSETS ......................................................................... $102,879,035 $ 52,174,690 $ 46,827,080
============ ============ ============

Total shares outstanding at end of period .......................................... 5,977,512 3,153,863 3,039,384
============ ============ ============

Net asset value, offering price, and redemption price per share .................... $ 17.21 $ 16.54 $ 15.41
============ ============ ============
</TABLE>

14 See accompanying notes to financial statements.

<PAGE>

- --------------------------------------------------------------------------------

STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------

For the Year Ended September 30, 1999
<TABLE>
<CAPTION>
Kobrick Kobrick Kobrick
Capital Emerging Growth Growth
Fund Fund Fund
-------------- --------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends (Net of foreign withholding taxes of $1,288, $0, and $1,493,
respectively) ................................................................. $ 232,013 $ 46,440 $ 164,283
Interest ....................................................................... 281,291 148,169 88,015
------------ ------------ ------------
513,304 194,609 252,298

Expenses
Investment advisory fees (Note 3) ............................................ 780,662 381,071 295,301
Distribution fees (Note 6) ................................................... 195,165 95,268 73,825
Administrative fees .......................................................... 64,925 64,996 50,315
Custodian and Accounting fees ................................................ 71,858 67,325 44,983
Audit fees ................................................................... 33,092 28,934 23,496
Legal fees ................................................................... 42,167 22,293 11,496
Trustees fees (Note 3) ....................................................... 16,598 16,613 15,451
Transfer agent fees (Note 3) ................................................. 93,568 70,668 62,780
Amortization of organizational costs (Note 2) ................................ 11,452 11,456 --
Amortization of offering costs (Note 2) ...................................... 9,755 9,755 12,142
Interest expense ............................................................. 6,555 -- --
Registration fees ............................................................ 23,566 8,696 28,848
Other ........................................................................ 34,249 15,962 11,169
------------ ------------ ------------
Total expenses ................................................................. 1,383,612 793,037 629,806
------------ ------------ ------------

Fees waived and/or expenses reimbursed by investment advisor and
transfer agent (Note 3) ................................................... (17,427) (126,146) (216,385)
------------ ------------ ------------
Net Expenses ................................................................... 1,366,185 666,891 413,421
------------ ------------ ------------
Net investment income (loss) ................................................... (852,881) (472,282) (161,123)
------------ ------------ ------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) on investments -- net ..................................... 16,177,706 10,214,647 (1,064,205)
Change in unrealized appreciation (depreciation) of investments -- net ......... 1,627,744 4,046,441 975,250
------------ ------------ ------------
Net realized and unrealized gain (loss) on investments ......................... 17,805,450 14,261,088 (88,955)
------------ ------------ ------------

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .................. $ 16,952,569 $ 13,788,806 $ (250,078)
============ ============ ============
</TABLE>

See accompanying notes to financial statements. 15
<PAGE>

- --------------------------------------------------------------------------------

STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Kobrick Kobrick
Capital Emerging Growth
Fund Fund
----------------------------- -----------------------------
Year Ended Period Ended Year Ended Period Ended
September 30, September 30, September 30, September 30,
1999 1998* 1999 1998*
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) ............................... $ (852,881) $ (346,943) $ (472,282) $ (278,462)
Net realized gain (loss) on investments .................... 16,177,706 (618,382) 10,214,647 (1,489,107)
Change in unrealized appreciation
(depreciation) on investments ............................ 1,627,744 3,238,173 4,046,441 693,148
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations ................................ 16,952,569 2,272,848 13,788,806 (1,074,421)
------------- ------------- ------------- -------------

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (loss) ............................... -- -- -- --
Net realized capital gains ................................. -- -- -- --
------------- ------------- ------------- -------------
-- -- -- --
------------- ------------- ------------- -------------

INCREASE (DECREASE) IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS (Note 5) ........................ 58,463,760 25,089,858 20,055,647 19,304,658
------------- ------------- ------------- -------------
Total increase (decrease) in net assets ....................... 75,416,329 27,362,706 33,844,453 18,230,237
------------- ------------- ------------- -------------

NET ASSETS
Beginning of period ......................................... 27,462,706 100,000 18,330,237 100,000
------------- ------------- ------------- -------------
End of period ............................................... $ 102,879,035 $ 27,462,706 $ 52,174,690 $ 18,330,237
============= ============= ============= =============
UNDISTRIBUTED (OVERDISTRIBUTED)
NET INVESTMENT INCOME (LOSS) ................................. $ -- $ -- $ -- $ --
============= ============= ============= =============
<CAPTION>
Kobrick
Growth
Fund
-----------------------------
Year Ended Period Ended
September 30, September 30,
1999 1998**
------------- -------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) ................................................. $ (161,123) $ 273
Net realized gain (loss) on investments ...................................... (1,064,205) (14,227)
Change in unrealized appreciation
(depreciation) on investments .............................................. 975,250 45,435
------------- -------------
Net increase (decrease) in net assets
resulting from operations .................................................. (250,078) 31,481
------------- -------------

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (loss) ................................................. (273) --
Net realized capital gains ................................................... -- --
------------- -------------
(273) --
------------- -------------

INCREASE (DECREASE) IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS (Note 5) .......................................... 46,022,992 1,022,958
------------- -------------
Total increase (decrease) in net assets ......................................... 45,772,641 1,054,439
------------- -------------

NET ASSETS
Beginning of period ........................................................... 1,054,439 --
------------- -------------
End of period ................................................................. $ 46,827,080 $ 1,054,439
============= =============
UNDISTRIBUTED (OVERDISTRIBUTED)
NET INVESTMENT INCOME (LOSS) ................................................... $ -- $ 273
============= =============
</TABLE>
* Portfolio commenced operations on December 31, 1997.
** Portfolio commenced operations on September 1, 1998.

16 See accompanying notes to financial statements.
<PAGE>

- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

For a share outstanding throughout each period.

<TABLE>
<CAPTION>
Kobrick Kobrick
Capital Emerging Growth
Fund Fund
-------------------------- --------------------------
For the Period For the Period
December 31, December 31,
Year Ended 1997 through Year Ended 1997 through
September 30, September 30, September 30, September 30,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ........................ $ 10.71 $ 10.00 $ 10.14 $ 10.00
----------- ---------- ---------- ----------
Income (Loss) from investment operations:
Net investment income (loss) (c) .......................... (0.18) (0.13) (0.18) (0.11)
Net realized and unrealized gain (loss) on investments .... 6.68 0.84 6.58 0.25(d)
----------- ---------- ---------- ----------
Total from investment operations ............................ 6.50 0.71 6.40 0.14
----------- ---------- ---------- ----------

Net asset value, end of period .............................. $ 17.21 $ 10.71 $ 16.54 $ 10.14
=========== ========== ========== ==========
Total return (a) ............................................ 60.69% 7.10% 63.12% 1.40%

Ratios and supplemental data
Net assets, end of period (000s) ............................ $ 102,879 $ 27,463 $ 52,175 $ 18,330
Ratios to average net assets:
Net expenses (b) .......................................... 1.75% 1.75% 1.75% 1.75%
Expenses before fee waiver (b) ............................ 1.77% 2.21% 2.08% 2.24%
Net investment income (loss)(b) ........................... (1.09)% (1.38)% (1.24)% (1.16)%
Portfolio turnover rate ..................................... 778% 350% 442% 287%

<CAPTION>
Kobrick
Growth
Fund
----------------------------
For the Period
September 1,
Year Ended 1998 through
September 30, September 30,
1999 1998
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ........................ $ 10.32 $ 10.00
---------- ---------
Income (Loss) from investment operations:
Net investment income (loss) (c) .......................... (0.08) 0.00
Net realized and unrealized gain (loss) on investments .... 5.17(d) 0.32
---------- ---------
Total from investment operations ............................ 5.09 0.32
---------- ---------

Net asset value, end of period .............................. $ 15.41 $ 10.32
========== =========
Total return (a) ............................................ 49.35% 3.20%

Ratios and supplemental data
Net assets, end of period (000s) ............................ $ 46,827 $ 1,054

Ratios to average net assets:
Net expenses (b) .......................................... 1.40% 1.40%
Expenses before fee waiver (b) ............................ 2.13% 11.11%
Net investment income (loss)(b) ........................... (0.55)% 0.32%
Portfolio turnover rate ..................................... 632% 11%
</TABLE>

(a) Total returns are historical and assume changes in share price and
reinvestments of dividends. Had certain expenses not been reduced during
the periods shown, total returns would have been lower. Periods of less
than one year are not annualized.
(b) Annualized for periods less than one year.
(c) Computed using the average shares method.
(d) Amount shown for a share outstanding does not correspond with the net
realized and unrealized gain (loss) on investments due to the timing of
sales and repurchases of Fund shares in relation to fluctuating market
values of the investments of the Fund.

See accompanying notes to financial statements. 17
<PAGE>

- --------------------------------------------------------------------------------

NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

For the Year Ended September 30, 1999

NOTE 1 -- ORGANIZATION
The Kobrick Investment Trust (the "Trust") was organized as a Massachusetts
business trust on October 10, 1997, and is registered under the Investment
Company Act of 1940, as amended, as a diversified open-end management investment
company. The Declaration of Trust permits the Trustees to issue an unlimited
number of shares of the Trust in multiple series. The Trust consists presently
of three separate series: Kobrick Capital Fund, Kobrick Emerging Growth Fund and
Kobrick Growth Fund (formerly Kobrick-Cendant Capital Fund, Kobrick-Cendant
Emerging Growth Fund and Kobrick-Cendant Growth Fund) (individually, a "Fund",
collectively, the "Funds"). The investment objective of the Kobrick Capital Fund
is to seek maximum capital appreciation by investing primarily in equity
securities of companies with small, medium and large capitalizations. The
investment objective of the Kobrick Emerging Growth Fund is to provide growth of
capital by investing primarily in equity securities of emerging growth companies
with emphasis on companies with small capitalizations. The investment objective
of the Kobrick Growth Fund is to provide long-term growth of capital by
investing primarily in equity securities of companies with large capitalizations
believed by the Fund's investment manager to have better than average long-term
growth potential.

The Funds' investment adviser is Kobrick Funds LLC ("Kobrick"), a wholly owned
subsidiary of Nvest Companies, L.P. ("Nvest"), which is a subsidiary of
Metropolitan Life Insurance Company. Kobrick was formed in May 1999 and on July
7, 1999 the business carried on by its predecessor ("former adviser") was
contributed to Kobrick.

NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from these estimates.

The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements.

SECURITY VALUATION: Each Fund's investment securities which are traded on
stock exchanges or are quoted by the National Association of Security Dealers
Automated Quotation System ("NASDAQ") are valued at the last reported sale
prices as of the close of the regular session of trading on the New York
Stock Exchange ("NYSE") on the day the securities are valued, or if not
traded on a particular day, at the closing bid prices. Securities traded in
the over-the-counter market, and which are not quoted by NASDAQ, are valued
at the last sale prices (or, if the last sale prices are not readily
available, at the last bid prices as quoted by the brokers that make markets
in the securities) as of the close of the regular session of trading on the
NYSE on the day the securities are being valued. Securities which are traded
both in the over-the-counter market and on a stock exchange are valued
according to the broadest and most representative market. Short-term
investments with maturities less than 60 days are valued at amortized cost
which approximates market value. Options, interest rate futures and options
thereon that are tracked on exchanges are valued at their last sale price as
of the close of such exchanges. Securities for which current market
quotations are not readily available are valued at their fair value as
determined in good faith in accordance with procedures approved by the Board
of Trustees.

REPURCHASE AGREEMENTS: Each Fund may enter into repurchase agreements with
institutions that Kobrick has determined are creditworthy pursuant to
criteria adopted by the Board of Trustees. The repurchase agreements are
collateralized by U.S. Government securities. The Fund's custodian takes
possession of the underlying collateral on behalf of the Funds. It is the
policy of the Funds to value the underlying collateral daily on a mark-to-
market basis to determine that the value of the collateral held, including
accrued interest, is at least equal to 102% of the repurchase price. In the
event of default of the obligation to repurchase, the Funds have the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. Under certain circumstances, in the event of default or
bankruptcy by the other party to the agreement, realization and/or retention
of the collateral or proceeds may be subject to delay due to legal
proceedings and the Fund may suffer a loss.

SECURITY TRANSACTIONS AND INVESTMENT INCOME: Investment security transactions
are recorded on trade date. Realized gains and losses on investments sold are
recorded based on the specific identification method. Dividend income on
investment securities, less foreign taxes withheld, if any, is recorded on
the ex-dividend date. Interest income on investment securities is recorded on
the accrual basis.

EXPENSES: Certain of the Trust's expenses are allocated equally to those
Funds which make up the Trust. Other expenses of the Trust are allocated to
the respective Funds based upon the relative net assets of each Fund.
Operating expenses directly attributable to a Fund are charged to the Fund's
operations.

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of each Fund to
declare and pay dividends from net investment income at least annually. Each
Fund will distribute net realized capital gains (including net short-term
capital gains) unless offset by any available capital loss carryforward, at
least annually. Income distributions and capital gain distributions are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These differences are due
primarily to differing treatments of income and gain on various investment
securities held by the Funds, timing differences and differing
characterizations of distributions made by the Funds.

18
<PAGE>

- --------------------------------------------------------------------------------

NOTES TO FINANCIAL STATEMENTS -- continued
- --------------------------------------------------------------------------------

For the Year Ended September 30, 1999

FEDERAL INCOME TAXES: Each Fund intends to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code of 1986, as amended
(the "Code"), by complying with the provisions available to regulated
investment companies, as defined in applicable sections of the Code, and to
make distributions of taxable income to shareholders sufficient to relieve
each Fund from all or substantially all federal income taxes. Accordingly,
no provision for federal income tax has been made. At September 30, 1999,
the Kobrick Growth Fund had a capital loss carryforward of $13,209, all of
which will expire on September 30, 2007. The Kobrick Growth Fund elected to
defer to its fiscal year ending September 30, 2000, a loss of $595,649.

ORGANIZATION COSTS: Offering costs, including the fees and expenses of
registering and qualifying shares of each Fund for distribution under
Federal and state securities regulations, have been amortized over the one-
year period from the date each Fund commenced operations. Costs and expenses
of the Trust in connection with the organization of the Trust and the
initial offering of shares of each Fund, excluding the Kobrick Growth Fund,
have been deferred by the Trust and are being amortized on a straight-line
basis from the date operations commenced over a period that a benefit is
expected to be realized, not to exceed sixty months. If any of the initial
shares of the Kobrick Capital Fund and Kobrick Emerging Growth Fund are
redeemed during the amortization period of these organizational costs by any
holder thereof, the redemption proceeds will be reduced by a pro rata
portion of the unamortized organization costs. Organizational costs
associated with the Kobrick Growth Fund have been borne by Kobrick.

LINE OF CREDIT: The Trust has entered into a committed line of credit with
State Street Bank and Trust Company. This line of credit agreement includes
restrictions that the Trust maintain an asset coverage ratio of at least
300% and borrowings must not exceed prospectus limitations. Interest on
borrowings is payable at the Bank's Cost of Funds plus 0.75% per annum.
Under this Agreement, the Trust has agreed to pay a 0.10% per annum fee on
the unused portion of the commitment, payable quarterly in arrears. For the
year ended September 30, 1999, the Kobrick Capital Fund paid a total of
$6,555 in interest and the Fund had borrowings under this Agreement as
follows:

<TABLE>
<CAPTION>
Maximum Average Daily Weighted Average
Portfolio Loan Amount of Loan Interest Rate
--------- ------------ -------------- ----------------
<S> <C> <C> <C>
Kobrick Capital Fund.... $ 5,627,000 $ 107,915 5.991%
=========== ========= =====
</TABLE>

NOTE 3 -- INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has entered into an investment advisory agreement (the "Advisory
Agreement") with Kobrick. Under the agreement, Kobrick provides investment
management services to the Trust, and is entitled to receive a fee, computed
daily and paid monthly, at the annual rate of 1.00% based on average daily net
assets of each Fund.

Subject to certain contractual expense caps, Kobrick may be required to, or may
voluntarily, waive all or a portion of its investment advisory fees. Pursuant to
the transfer agent agreement, Boston Financial Data Services, Inc. ("BFDS")
agreed to waive a portion of their fees for the first six months of each Fund's
operations. For the year ended September 30, 1999, Kobrick and BFDS waived fees
and/or reimbursed expenses as follows:

<TABLE>
<CAPTION>
Kobrick Kobrick Kobrick
Capital Emerging Growth Growth
Fund Fund Fund
-------- --------------- ---------
<S> <C> <C> <C>
Investment Advisory Fees Waived.... $ 17,427 $ 126,146 $ 206,885
Transfer Agent Fees Waived......... -- -- 9,500
-------- -------------- ---------
Total Fees Waived $ 17,427 $ 126,146 $ 216,385
======== ============== =========
</TABLE>

No officer, director or employee of Kobrick, or any affiliate thereof, receives
any compensation from the Trust for serving as Trustee or officer of the Trust.
Each Trustee who is not an "affiliated person" receives an annual fee from the
Trust of $4,000 plus $500 from each Fund for each board meeting attended and
$500 from each Fund for each audit committee meeting attended. The Trust also
reimburses out-of-pocket expenses incurred by each Trustee for attending such
meetings.

19
<PAGE>

- --------------------------------------------------------------------------------

NOTES TO FINANCIAL STATEMENTS -- continued
- --------------------------------------------------------------------------------
For the Year Ended September 30, 1999

NOTE 4 -- PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate amounts of purchases and sales of investment securities, excluding
short-term investments, for the year ended September 30, 1999, were as follows:

Purchases Sales
------------ ------------
Kobrick Capital Fund............................ $596,616,191 $542,553,563
------------ ------------
Kobrick Emerging Growth Fund.................... $169,982,774 $152,920,732
------------ ------------
Kobrick Growth Fund............................. $221,818,752 $179,086,314
------------ ------------

NOTE 5 -- CAPITAL SHARES
At September 30, 1999, Cendant Corporation ("Cendant") owned 42%, 62%, and 81%
of the Kobrick Capital Fund, Kobrick Emerging Growth Fund, and Kobrick Growth
Fund, respectively. Cendant no longer maintains an interest in the Funds'
investment advisor as a result of the contribution of business to Kobrick
described in Note 1. In conjunction with this contribution, the former adviser
has entered into an agreement with Cendant whereby certain restrictions have
been placed on Cendant's ability to redeem shares in the Funds through December
31, 2000. Partial redemptions, however, are permitted through December 31, 2000
and such redemptions could have a material impact on the net assets of the
Funds. At September 30, 1999 there was an unlimited number of shares of
beneficial interest authorized. Transactions in capital shares were as follows:

For the Period
December 31, 1997
(Commencement of Operations)
Year Ended through
September 30, 1999 September 30, 1998
------------------ ------------------
Kobrick Capital Fund Shares Amount Shares Amount
- -------------------- ------ ------ ------ ------
<S> <C> <C> <C> <C>

Shares sold.............. 11,084,151 $ 196,225,287 3,848,564 $ 39,227,006
Shares repurchased....... (7,670,163) (137,761,527) (1,295,040) (14,137,148)
------------ ------------- ------------- -------------
Net increase (decrease).. 3,413,988 $ 58,463,760 2,553,524 $ 25,089,858
============ ============= ============= =============
</TABLE>

<TABLE>
<CAPTION>
For the Period
December 31, 1997
(Commencement of Operations)
Year Ended through
September 30, 1999 September 30, 1998
------------------ ------------------
Kobrick Emerging Growth Fund Shares Amount Shares Amount
- ---------------------------- ------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares sold.................. 9,037,310 $ 149,214,081 3,395,365 $ 35,267,792
Shares repurchased........... (7,690,691) (129,158,434) (1,598,121) (15,963,134)
------------- ------------- ------------ ------------
Net increase (decrease)...... 1,346,619 $ 20,055,647 1,797,244 $ 19,304,658
============= ============= ============ ============
</TABLE>

<TABLE>
<CAPTION>
For the Period
September 1, 1998
(Commencement of Operations)
Year Ended through
September 30, 1999 September 30, 1998
------------------ ------------------
Kobrick Growth Fund Shares Amount Shares Amount
- ------------------- ------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares sold........................... 3,281,085 $ 51,206,741 102,195 $ 1,023,020
Shares issued in reinvestment of
dividend from net investment.......... 21 273 -- --
Shares repurchased.................... (343,911) (5,184,022) (6) (62)
------------ ------------ ---------- ------------
Net increase (decrease)............... 2,937,195 $ 46,022,992 102,189 $ 1,022,958
============ ============ ========== ============
</TABLE>

20
<PAGE>

- --------------------------------------------------------------------------------

NOTES TO FINANCIAL STATEMENTS -- continued
- --------------------------------------------------------------------------------

For the Year Ended September 30, 1999

NOTE 6 -- DISTRIBUTION PLAN
Pursuant to Rule 12b-1 under the Investment Company Act of 1940, the Trust has
adopted a plan of distribution (the "Plan") under which each Fund may directly
incur certain distribution-related expenses, including: payments to securities
dealers and others who are engaged in the sale of shares of each Fund and who
may be advising shareholders of each Fund regarding the purchase, sale or
retention of such shares; expenses of maintaining personnel who engage in or
support distribution of shares or who render shareholder support services not
otherwise provided by the Trust's transfer agent; expenses of formulating and
implementing marketing and promotional activities; expenses of preparing,
printing and distributing sales literature, prospectuses, statements of
additional information and reports for recipients other than existing
shareholders of each Fund; expenses of obtaining such information, analyses and
reports with respect to marketing and promotional activities as the Trust may,
from time to time, deem advisable, and any other expenses related to the
distribution of the Funds' shares. The annual distribution fees paid pursuant to
the plan is 0.25% of each Fund's average daily net assets.

NOTE 7 -- SUBSEQUENT EVENTS
At a meeting of the Funds' Board of Trustees held on October 5, 1999, the
following changes were approved:

New England Funds, L.P., 399 Boylston Street, Boston, Massachusetts, 02116, a
wholly owned subsidiary of Nvest, was approved as the Funds' Distributor
effective October 6, 1999.

The Board authorized the Funds to issue multiple classes of shares. Effective
November 1, 1999, the Funds will offer Classes A, B,C and Y shares. Class A
shares purchased after October 31, 1999 will be subject to a maximum front end
sales charge of 5.75%. All shareholders invested in any of the Funds before the
new share classes become effective will automatically be converted to Class A
"load waived" shares and will be allowed to continue to invest without paying
any commissions. Class B shares do not pay a front end sales charge, but pay a
higher ongoing distribution fee than Class A shares, for eight years (at which
point they automatically convert to Class A shares), and are subject to a
contingent deferred sales charge if those shares are redeemed within six years
of purchase. Class C shares do not pay front end sales charges and do not
convert to any class of shares, but they do pay a higher ongoing distribution
fee than Class A shares and may be subject to a contingent deferred sales charge
if those shares are redeemed within one year. Class Y shares do not pay a front
end sales charge, a contingent deferred sales charge or service and distribution
fees. Class Y shares are intended for institutional investors and impose certain
eligibility and investment requirements.

Expenses of the Fund are borne pro-rata by the holders of each class of shares,
except that each class bears expenses unique to that class (including the Rule
12b-1 service and distribution fees applicable to such class), and votes as a
class only with respect to its own Rule 12b-1 plan. Shares of each class would
receive their pro rata share of the net assets of the Fund, if the Fund were
liquidated. In addition, the Trustees approve separate dividends on each class
of shares.

NOTE 8 -- TRANSACTIONS WITH AFFILIATED COMPANIES
As a result of Cendant Corporation's ownership of shares of the Funds (see Note
5) it is considered an affiliate of the Funds. Transactions during the period
with companies which are affiliates are as follows:

<TABLE>
<CAPTION>
Affiliates Purchase Cost Sales Cost Dividend Income Value
---------- ------------- ---------- --------------- -----
<S> <C> <C> <C> <C> <C>
Kobrick Growth Fund Cendant Corp. $ 473,976 -- -- $ 392,275
</TABLE>

NOTE 9 -- SHAREHOLDER MEETING (UNAUDITED)
At a special shareholders' meeting held on July 7, 1999, shareholders of each
Fund voted for the following proposals:

To approve an investment advisory contract relating to each Fund between
Kobrick and each Fund.

Voted For Voted Against Abstained Votes Broker Non-Votes Total Votes
--------- ------------- --------------- ---------------- -----------
<S> <C> <C> <C> <C> <C>
Kobrick Capital Fund 3,039,051 -- -- -- 3,039,051
Kobrick Emerging Growth Fund 1,948,860 -- -- -- 1,948,860
Kobrick Growth Fund 2,451,704 -- -- -- 2,451,704
</TABLE>

To ratify appointment of PricewaterhouseCoopers LLP as the Trust's
independent accountants for the fiscal year ending September 30, 1999.

<TABLE>
<CAPTION>
Voted For Voted Against Abstained Votes Broker Non-Votes Total Votes
--------- ------------- --------------- ---------------- -----------
<S> <C> <C> <C> <C> <C>
7,438,777 838 -- -- -- 7,439,615
</TABLE>
<PAGE>

- --------------------------------------------------------------------------------

NOTES TO FINANCIAL STATEMENTS -- continued
- --------------------------------------------------------------------------------

For the Year Ended September 30, 1999

NOTE 10 -- DISTRIBUTIONS (UNAUDITED)
At a meeting of the Funds' Board of Trustees held on October 5, 1999, the
Trustees authorized the payment on October 29, 1999, to shareholders of record
on October 28, 1999, of the following dividends and capital gains distributions:

Capital Gains
Distributions
Dividends (Per Share)
----------- -------------
Kobrick Capital Fund ................... $ -- $ 2.374
Kobrick Emerging Growth Fund ........... -- 2.712
Kobrick Growth Fund .................... -- --

Kobrick Capital Fund and Kobrick Emerging Growth Fund hereby designate
approximately $2,365,000 and $894,000, respectively, as capital gains dividends
for the purpose of the dividend paid deduction.
<PAGE>

- --------------------------------------------------------------------------------

REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------

REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Kobrick Investment Trust and the Shareholders of Kobrick
Capital Fund, Kobrick Emerging Growth Fund and Kobrick Growth Fund

In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, 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 Kobrick Capital Fund, Kobrick
Emerging Growth Fund and Kobrick Growth Fund (formerly Kobrick-Cendant Capital
Fund, Kobrick-Cendant Emerging Growth Fund and Kobrick-Cendant Growth Fund)
(funds of the Kobrick Investment Trust, hereafter referred to as the "Trust") at
September 30, 1999, and the results of their operations, the changes in their
net assets and the financial highlights for the periods indicated, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's 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 generally accepted
auditing standards 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 September 30, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.

PricewaterhouseCoopers LLP

Boston, Massachusetts
October 25, 1999
<PAGE>

Notes --
<PAGE>

- --------------------------------------------------------------------------------

NEW ENGLAND FUNDS
- --------------------------------------------------------------------------------

Large-Cap Equity Funds
Capital Growth Fund
Kobrick Growth Fund
International Equity Fund
Growth Fund
Growth and Income Fund
(formerly Growth Opportunities Fund)
Balanced Fund
Value Fund

All-Cap Equity Funds
Star Advisers Fund
Kobrick Capital Fund
Star Worldwide Fund
Bullseye Fund
Equity Income Fund

Small-Cap Equity Funds
Star Small Cap Fund
Kobrick Emerging Growth Fund

Government Income Funds
Limited Term U.S. Government Fund
Government Securities Fund

Tax-Free Income Funds
Municipal Income Fund
Intermediate Term Tax Free
Fund of California
Massachusetts Tax Free Income Fund

Money Market Funds*
Cash Management Trust - Money Market Series
Tax Exempt Money Market Trust

(* An investment in the Fund is not insured or guaranteed
by the FDIC or any governmental agency.)

Corporate Income Funds
Short Term Corporate Income Fund
(formerly Adjustable Rate U.S. Government Fund)
Bond Income Fund
High Income Fund
Strategic Income Fund

To learn more, and for a free prospectus, contact your financial representative.

Visit our World Wide Web site at www.mutualfunds.com
New England Funds, L.P., Distributor
399 Boylston Street
Boston, MA 02116
Toll Free 800-225-5478

This material is authorized for distribution to prospective investors when it is
preceded or accompanied by the Fund's current prospectus, which contains
information about distribution charges, management and other items of interest.
Investors are advised to read the prospectus carefully before investing.

New England Funds, L.P., and other firms selling shares of New England Funds
are members of the National Association of Securities Dealers, Inc. (NASD). As
a service to investors, the NASD has asked that we inform you of the
availability of a brochure on its Public Disclosure Program. The program
provides access to information about securities firms and their
representatives. Investors may obtain a copy by contacting the NASD at
800-289-9999 or by visiting their Web site at www.NASDR.com.
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NEW ENGLAND FUNDS(R) IT'S ALL ABOUT VISION(SM)
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399 Boylston Street

Boston, Massachusetts

02116
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