MACROTRENDS FUND
----------------
SEMI-ANNUAL REPORT
MAY 31, 2000
(Unaudited)
<PAGE>
YALE FUNDS 3980 Howard Hughes Parkway
Suite 400
Las Vegas, NV 89109
702-307-9898 Tel
702-693-4548 Fax
MANAGEMENT AND RESEARCH CO.
--------------------------------------------------------------------------------
Dear Fellow Shareholders,
Thank you for your confidence and welcome as investors of MacroTrends Fund. I'm
excited about having this opportunity to present you our first Semi-annual
Report and our progress since the Fund's inception on March 27, 2000.
MacroTrends Fund's investment objective is solely focused on those macro trends,
the natural, fundamental advancements in our society, economy, and technologies,
the real meaningful big pictures. We invest in companies sharing the same
vision. While we invest, we pay little or no attention to short-term micro
factors, which are valued highly by most other investors and mutual fund
managers, such as analysts' up- or downgrades, quarter to quarter earnings
projections, or insider sale of shares, etc. On a large scale, even the Federal
Reserve's short-term interest rate decisions are just short-term phenomena and
not history-making events, therefore, can be discounted. If one has been
overwhelmed by the above-mentioned small factors about Microsoft Corporation
since 1986, he must have missed the real growth of that company and that's too
bad (for him).
As of May 31, 2000, MacroTrends Fund holds 74 stocks and 6 HOLDRs, which are
baskets of 20 stocks in some particular industries sponsored by Merrill Lynch.
With more matured issues like, Microsoft, Sun Microsystems, Dell Computer and
others, we also (or only) hold its long-term options or LEAPs to better leverage
our investment dollars. Because we were buying instead of selling on and around
both April 14th and May 25th, we have outperformed the NASDAQ index by about 11
percentage points.
We are very optimistic about the future of multiple platforms of communications,
new telephony technologies, networking and other related fields, and health
science research and applications. Forget about the daily fluctuations of the
stock market. Be focused!
We appreciate your continuing confidence and support. Our website, UPUPUPUP.COM,
will allow you to better track your investment. If you ever have a problem
accessing this site, please use it's backup site at WWW.WFUND.COM. Please feel
free to call me at 702-307-9898 should you have any questions.
Sincerely,
/s/ Y. YALE WANG
----------------
Y. Yale Wang
------------------------
"DO YOU ALSO SEE THE MACROTRENDS?" (TM)
<PAGE>
<TABLE>
<CAPTION>
MACROTRENDS FUND
Schedule of Investments
May 31, 2000
(UNAUDITED)
MARKET
SHARES VALUE
------ -----
COMMON STOCKS - 94.58%
<C> <S> <C>
APPLICATIONS SOFTWARE - 5.08%
200 Infosys Technologies Sponsored ADR* $30,700
400 Intuit Inc.* ...................... 14,500
100 Microsoft Corp. * ................. 6,256
500 Red Hat Inc.* ..................... 8,031
200 VA Linux Systems* ................. 7,966
-------
67,453
-------
BANKING - .88%
100 Bank of America Corp. ............. 5,556
100 Citigroup Inc. .................... 6,219
-------
11,775
-------
CELLULAR TELECOMMUNICATIONS - 1.38%
400 Vodafone Airtouch Plc Sponsored ADR 18,325
-------
COMMUNICATIONS SOFTWARE - 1.37%
406 Kana Communications Inc. .......... 18,194
-------
COMPUTER AIDED DESIGN - .94%
300 Numerical Technologies Inc* ....... 12,431
-------
COMPUTER DATA SECURITY - 3.45%
100 Check Point Software Tech * ....... 18,788
200 Verisign Inc. * ................... 27,075
-------
45,863
-------
COMPUTER SERVICES - .63%
200 Checkfree Holdings Corp.* ......... 8,362
-------
COMPUTER -INTERGRATED SYSTEMS - 4.93%
200 Brocade Communication Systems Inc.* 23,588
500 Redback Networks* ................. 41,938
-------
65,526
-------
The accompanying notes are an integral part of these financial statements.
<PAGE>
MACROTRENDS FUND
Schedule of Investments
May 31, 2000
(Unaudited) - (Continued)
MARKET
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
COMPUTER - MEMORY DEVICES - 2.19%
200 EMC Corp.* ........................ $23,263
100 Sandisk Corp.* .................... 5,812
-------
29,075
-------
COMPUTERS-MICRO - 1.15%
200 Sun Microsystems Inc.* ............ 15,325
-------
E-COMMERCE - 1.19%
2,000 Drugstore.com Inc.* ............... 12,000
100 Priceline.com Inc.* ............... 3,812
-------
15,812
-------
ELECTRONIC COMPONENTS - MISC. - .34%
100 DSP Group Inc.* ................... 4,475
-------
ELECTRONIC COMPONENTS- SEMICONDUCTOR - 3.00%
100 Broadcom Corp Class A* ............ 13,006
100 Intel Corp. ....................... 12,463
100 Qlogic Corp.* ..................... 4,913
100 Triquint Semiconductor Inc.* ...... 9,438
-------
39,820
-------
ENTERPRISE SOFTWARE/SERVICES - 2.70%
500 Oracle Corp.* ..................... 35,937
-------
FIBER OPTICS - 8.17%
300 JDS Uniphase Corp.* ............... 26,400
300 Metromedia Fiber Network Inc Class A* 9,280
100 SDL Inc.* ......................... 22,655
600 Sycamore Networks Inc.* ........... 50,175
-------
108,510
-------
The accompanying notes are an integral part of these financial statements.
<PAGE>
MACROTRENDS FUND
Schedule of Investments
May 31, 2000
(Unaudited) - (Continued)
MARKET
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
FINANCE -INVEST BANKER/BROKER - 12.43%
1,400 B2B Internet Holders Trust ........ $41,912
300 Biotech HOLDRs Trust * ............ 39,150
300 Broadband HOLDRs Trust ............ 22,950
100 Internet Architect HOLDRs Trust ... 7,938
900 Internet Infrastructure HOLDRs Trust * 40,444
100 Knight Trading Group Inc. * ....... 2,906
100 Pharmaceutical HOLDRs Trust ....... 9,950
-------
165,250
-------
INTERNET CONTENT - 8.37%
300 CMGI Inc.* ........................ 14,344
500 Critical Path Inc.* ............... 15,906
100 Doubleclick Inc.* ................. 4,225
800 Infospace Inc.* ................... 34,700
300 Internet Capital Group Inc.* ...... 8,081
300 Yahoo Inc.* ....................... 33,919
-------
111,175
-------
INTERNET SOFTWARE - 17.19%
400 Akamai Technologies Inc.* ......... 27,025
400 America Online Inc.* .............. 21,200
100 Ariba Inc.* ....................... 5,213
900 BroadVision Inc.* ................. 32,231
400 Commerce One Inc.* ................ 14,312
500 Covad Communications Group* ....... 11,812
600 Digital Island Inc.* .............. 11,006
300 Exodus Communications Inc.* ....... 21,169
200 Inktomi Corp.* .................... 22,325
400 Internap Network Services Corp.* .. 11,450
100 Keynote Systems Inc.* ............. 3,481
200 Net Perceptions Inc.* ............. 2,975
100 Netopia Inc.* ..................... 3,363
300 Phone.com Inc.* ................... 20,981
100 RealNetworks Inc.* ................ 3,631
600 USinternetworking Inc.* ........... 10,763
200 Vignette Corp. .................... 5,513
-------
228,450
-------
The accompanying notes are an integral part of these financial statements.
<PAGE>
MACROTRENDS FUND
Schedule of Investments
May 31, 2000
(Unaudited) - (Continued)
MARKET
Shares VALUE
------ -----
COMMON STOCKS (CONTINUED)
MEDICAL - BIOMEDICAL/GENETIC - .89%
100 Affymetrix Inc.* .................. $11,875
-------
NETWORKING PRODUCTS - 7.74%
500 Cisco Systems Inc.* ............... 28,500
300 Cobalt Networks Inc.* ............. 8,025
300 Emulex Corp.* ..................... 13,650
200 Extreme Networks Inc.* ............ 9,775
300 Foundry Networks Inc.* ............ 18,919
100 Juniper Networks Inc.* ............ 17,519
100 Networks Appliance Inc.* .......... 6,456
-------
102,844
-------
SATELLITE TELECOMMUNICATIONS - .60%
200 Echostar Communications Corp Class A* 7,988
-------
SUPER-REGIONAL BANK U.S. - .75%
300 Bank One Corp. .................... 9,919
-------
TELECOMMUNICATION SERVICES - 2.37%
200 Global Crossing Ltd.* ............. 5,013
500 Net2Phone Inc.* ................... 14,750
100 Qwest Communications Int'l Inc. ... 4,231
200 Worldcom Inc.* .................... 7,525
-------
31,519
-------
TELECOMMUNICATIONS EQUIPMENT - 4.21%
200 Efficient Networks Inc.* .......... 9,700
800 Ericsson (LM) Telephone Sponsored ADR 16,400
100 Lucent Technologies Inc. .......... 5,737
200 Nortel Networks Corp. ............. 10,863
200 Qualcomm Inc.* .................... 13,275
-------
55,975
-------
WIRELESS EQUIPMENT - 2.63%
400 Proxim Inc.* ...................... 34,925
-------
TOTAL COMMON STOCKS
(Cost $1,513,014) ................. 1,256,803
=========
The accompanying notes are an integral part of these financial statements.
<PAGE>
MACROTRENDS FUND
Schedule of Investments
May 31, 2000
(Unaudited) - (Continued)
MARKET
CONTRACTS VALUE
--------- ------
CALL OPTIONS - 5.82%
5 Applied Materials, Jan./$110 ...... $12,438
5 Cisco Systems Inc., Jan./$70 ...... 7,000
5 Dell Computer Corp., Jan./$50 ..... 5,281
2 Inktomi Corp., Jan./$200 .......... 5,725
3 Intel Corp., Jan./$160 ............ 7,088
3 Internet Architect HOLDRs Trust, Jan./ 8,025
5 Microsoft Corp., Jan./$75 ......... 5,312
5 Nokia Corp Sponsored, Jan./$60 .... 7,375
3 Oracle Corp., Jan./$80 ............ 7,050
3 Sun Microsystems Inc., Jan./$50 ... 6,000
2 Triquint Semiconductor, Inc., Nov./$80 5,975
-------
TOTAL CALL OPTIONS
(Cost $82,034)........... 77,269
-------
TOTAL INVESTMENTS
(Cost $1,595,048).............. 100.40% 1,334,072
Liabilities less other assets... (0.40%) (5,270)
------ ----------
TOTAL NET ASSETS......... 100.00% $1,328,802
====== ==========
At May 31, 2000, the cost for Federal income tax purposes is $1,595,048. Gross
unrealized appreciation and depreciation of securities are as follows:
Gross unrealized appreciation...... $ 45,916
Gross unrealized depreciation ..... (306,892)
----------
Net unrealized depreciation........ $ (260,976)
==========
<FN>
* Denotes non-income producing security.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
MacroTrends Fund
Statement of Assets and Liabilities
May 31, 2000
(Unaudited)
Assets:
<S> <C>
Investments in securities, at value
(cost $1,595,048) (Note 2) ............................. $ 1,334,072
Cash .................................................... 23,534
Dividends receivable .................................... 88
Other assets ............................................ 10
-----------
Total Assets ............................................ 1,357,704
-----------
Liabilities:
Payable for securities purchased ........................ 12,149
Payable for Fund shares repurchased ..................... 108
Accrued expenses and other liabilities .................. 16,645
-----------
Total Liabilities ....................................... 28,902
-----------
Net Assets ............................................ $ 1,328,802
===========
Net Assets Consist of:
Paid in surplus ......................................... $ 1,604,859
Accumulated net investment income (loss) ................ (15,060)
Accumulated net realized gain (loss) from
investment transactions ............................ (21)
Net unrealized appreciation (depreciation) on investments (260,976)
-----------
Net Assets ............................................ $ 1,328,802
===========
Net asset value and redemption price per share
($1,328,802/169,749 shares outstanding) .................... $ 7.83
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
MacroTrends Fund
Statement of Operations
For the period March 27, 2000 (commencement of operations)
through May 31, 2000
(Unaudited)
Investment Income:
<S> <C>
Interest .......................................... $ 424
Dividends ......................................... 1,160
---------
Total Investment income ....................... 1,584
---------
Expenses:
Advisory fees (Note 3) ............................ 2,069
Distribution Fees (Note 5) ........................ 497
Administration fees (Note 4) ...................... 6,000
Transfer agent fees (Note 4) ...................... 2,200
Registration fees ................................. 1,750
Directors fees .................................... 1,000
Audit fees ........................................ 1,460
Insurance ......................................... 937
Custody fees ...................................... 550
Legal fees ........................................ 1,500
Printing and postage expense ...................... 500
Other expenses .................................... 250
---------
Total expenses ................................ 18,713
Less: waiver of advisory fees (Note 3) ............ (2,069)
---------
Net expenses .................................... 16,644
---------
Net investment income (loss) .................... (15,060)
---------
Net Realized and Unrealized Gains (Losses)
on Investments: (Note 2)
Net realized gain (loss) on securities transactions (21)
Net increase (decrease) in unrealized appreciation
on investments .................................. (260,976)
---------
Net gain (loss) on investments .................... (260,997)
---------
Net increase (decrease) in net assets resulting
from operations ................................. $(276,057)
=========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
MACROTRENDS FUND
Statement of Changes in Net Assets
FOR THE PERIOD
MARCH 27, 2000*
THROUGH MAY 31, 2000
--------------------
(UNAUDITED)
OPERATIONS:
<S> <C>
Net investment income (loss) .................................. $ (15,060)
Net realized gain (loss) from investment transactions ......... (21)
Net increase (decrease) in unrealized appreciation
on investments ............................................... (260,976)
-----------
Net increase (decrease) in net assets resulting from operations (276,057)
-----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income .......................... 0
Distributions from net realized gains on investments .......... 0
FUND SHARE TRANSACTIONS (1)
Proceeds from shares sold ..................................... 1,604,967
Dividends reinvested .......................................... 0
Payment for shares redeemed ................................... (108)
-----------
Net increase (decrease) in net assets from fund
share transactions ........................................... 1,604,859
-----------
Net increase (decrease) in net assets ......................... 1,328,802
NET ASSETS:
Beginning of period ........................................... 0
-----------
End of period ................................................. $ 1,328,802
===========
(1)Shares sold ................................................... 169,761
Dividends reinvested .......................................... 0
Shares redeemed ............................................... (12)
-----------
Net increase (decrease) in fund shares ........................ 169,749
===========
<FN>
* Commencement of operations.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
MACROTRENDS FUND
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
FOR THE PERIOD
MARCH 27, 2000*
THROUGH MAY 31, 2000
--------------------
(UNAUDITED)
<S> <C>
Net asset value, beginning of period ........................ $ 10.00
------------
INCOME (LOSS) FROM INVESTMENT OPERATONS:
Net investment income (loss) ................................ (0.09)
Net realized and unrealized gain (loss) on investments ...... (2.08)
------------
Total from investment operations ............................ (2.17)
------------
Less distributions:
Dividends from net investment income ........................ 0.00
Distributions from net realized gains on investments ........ 0.00
------------
Total dividends and distributions ........................... 0.00
------------
Net asset value, end of period .............................. $ 7.83
============
Total return ................................................ (21.70%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) .................... $ 1,329
Ratio of expenses to average net assets ..................... 10.05% +
Ratio of expenses to average net assets, before reimbursement 11.30% +
Ratio of net investment income (loss) to average net assets . (9.10%) +
Ratio of net investment income (loss) to average net assets,
before reimbursement ....................................... (10.35%)+
Portfolio turnover rate ..................................... 0.00%
<FN>
* Commencement of operations.
+ Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
MACROTRENDS FUND
NOTES TO FINANCIAL STATEMENTS
MAY 31, 2000
(UNAUDITED)
NOTE 1. ORGANIZATION
MacroTrends Fund (the "Fund") is a separate series of Questar Funds, Inc. (the
"Company"), a Maryland Corporation, incorporated on February 13, 1998, and
registered as an open-end, management investment company under the Investment
Company Act of 1940, as amended. The Fund's investment objective is to seek
capital appreciation by investing in a diversified portfolio of securities
consisting primarily of common stocks of companies positioned for growth in
light of global economic and social changes. The Fund commenced operations on
March 27, 2000.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.
A. SECURITY VALUATION - Securities for which market quotations are
readily available are valued at market value. Portfolio securities
for which market quotations are not considered readily available
are stated at fair value on the basis of valuations furnished by a
pricing service approved by the Board of Directors. Short-term
investments held by the Fund that mature in 60 days or less are
valued at amortized cost, which approximates market value. All
other securities and assets are valued at their fair value
following procedures approved by the Board of Directors.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Securities
transactions are accounted for on the trade date. Dividend income
is recorded on the ex-dividend date. Interest income is recorded
on the accrual basis.
C. FEDERAL INCOME TAXES - The Fund intends to comply with
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income
to its shareholders. Therefore, no provision for Federal income
tax is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - The Fund records
dividends and distributions to shareholders on the ex-dividend
date. The Fund will distribute its net investment income, and net
realized capital gains, if any, annually.
E. USE OF ESTIMATES - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting periods. Actual results could differ from
those estimates.
NOTE 3. INVESTMENT ADVISORY AGREEMENT
The Fund has an investment advisory agreement with YaleFunds Management and
Research Co. (the "Advisor"). Pursuant to this agreement, the Advisor is
responsible for formulating the Fund's investment programs and for making
day-to-day investment decisions and engaging in portfolio transactions. For
its services, the Advisor receives an advisory fee at an annual rate of 1.25%
of the average daily net assets of the Fund. The Advisor may, in its
discretion, waive some or all of its fees. For the period ended May 31, 2000,
the Advisor waived its fee of $2,069.
<PAGE>
MACROTRENDS FUND
NOTES TO FINANCIAL STATEMENTS
MAY 31, 2000
(UNAUDITED)-(CONTINUED)
NOTE 4. FUND ADMINISTRATION AND TRANSFER AGENCY AGREEMENT
The Fund has an administration and transfer agency agreement with American
Data Services, Inc. ("ADS" or the "Administrator"), of which the Fund's
president is also an officer. Under this agreement, the Administrator provides
the Fund with administrative, transfer agency, and fund accounting services.
For the services rendered to the Fund by the Administrator, the Fund pays the
Administrator a monthly fee, equal to 1/12th of 0.15% of the first $75
million, 1/12th of 0.10% of the next $75 million, and 1/12th of 0.07% of the
remaining balance of the Fund's average monthly net assets. The fee is subject
to a monthly minimum of $3,000. ADS also receives a monthly transfer agency
fee, calculated as a combination of account maintenance charges plus
transaction charges, subject to a $1000 monthly minimum. The Fund also
reimburses ADS for any out-of-pocket expenses. For the period ended May 31,
2000, ADS earned $8,200 for administrative, transfer agency, and fund
accounting services.
NOTE 5. DISTRIBUTION FEES
The Board of Directors has adopted a Distribution Plan applicable to the Fund
under Section 12(b) of the 1940 Act and Rule 12b-1 thereunder. AmeriMutual
Funds Distributors, Inc. (the "Distributor"), an affiliate of American Data
Services, Inc., serves as the Fund's distributor. Pursuant to the Plan, the
Distributor will receive a monthly fee calculated at an annual rate of .30% of
its average daily net assets, to enable it to provide marketing and
promotional support to the Fund, shareholder servicing and maintaining
shareholder accounts and to make payments to broker/dealers and other
financial institutions for providing distribution assistance. For the period
ended May 31, 2000, the Fund incurred distribution expenses of $497.
NOTE 6. INVESTMENT TRANSACTIONS
For the period ended May 31, 2000, purchases and sales of investment
securities, excluding short-term securities, aggregated $1,513,057 and $0,
respectively.
<PAGE>
INVESTMENT ADVISOR
YaleFunds Management and Research Co.
3980 Howard Hughes Parkway, Suite 400
Las Vegas, NV 89109
LEGAL COUNSEL
Spitzer & Feldman P.C.
405 Park Avenue
New York, NY 10022
INDEPENDENT AUDITORS
McCurdy & Associates CPA's, Inc.
27955 Clemens Road
Westlake, OH 44145
ADMINISTRATOR, TRANSFER AGENT AND
DIVIDEND DISBURSING AGENT
American Data Services, Inc.
150 Motor Parkway, Suite 109
Hauppauge, NY 11788
DISTRIBUTOR
AmeriMutual Funds Distributors, Inc.
150 Motor Parkway, Suite 109
Hauppauge, NY 11788
CUSTODIAN
Union Bank of California
475 Sansome Street, 15th Floor
San Francisco, CA 94111
This report is intended for shareholders of the Fund and may not be used as
sales literature unless preceded or accompanied by a current prospectus.
