The
Henssler
Equity
Fund
ANNUAL REPORT
April 30, 2000
The Henssler Equity Fund
1281 Kennestone Circle, Suite 100
Marietta, Georgia 30066
1-800-936-3863
www.henssler.com
<PAGE>
June 1, 2000
Dear Fellow Shareholders:
Thank you for investing in The Henssler Equity Fund ("The Fund"). As you know,
the stock market has recently been on a roller coaster ride! We are pleased to
report that The Fund cumulative return for the year ended April 30, 2000, was
13.37% versus 10.13% for the Standard & Poor's 500 Index (S&P 500) and 7.87% for
the Value Line Arithmetic Index. On an annualized basis since inception on June
10, 1998, The Fund has returned 16.42% versus 16.67% for the S&P 500 and 6.40%
for the Value Line Arithmetic Index.
The Fund continues to perform well among its peers. In the May 1, 2000, edition
of The Wall Street Journal mutual fund section, Lipper, Inc. ranked "The Fund"
as a Large Cap Value Fund, and rated The Fund "A" for its performance during the
year ended April 30, 2000. The ranking compares performance among funds with the
same investment objectives. There were 345 funds classified as large cap value
funds. The "A" ranking places The Fund in the top 20% of its peers. Of course,
we caution investors that past performance is no guarantee of future results.
Our long-term investment strategy has been to overweight our positions in the
Technology, Health Care and Financial sectors, versus the S&P 500, due to their
long-term prospects for above average growth. During the past year when tech
stocks "went through the roof," and comprised as much as 35% of the S&P 500, we
felt that prices were so high that we should be underweighted. As of May 18,
2000, we are underweighted in the Technology sector, with approximately 24%
invested in tech stocks versus 28.5% for the S&P 500.
In the Technology sector, we own companies such as Intel, Microsoft, Dell,
Applied Materials, Cisco Systems, Computer Associates, Sun Microsystems, and
Oracle. In February, we added ADC Telecommunications (ADC) to the portfolio at a
split-adjusted price of $35. We viewed this stock to be more reasonably valued
than many other stocks in the Technology sector. ADC is a networking equipment
company, deeply involved in the broadband revolution. At about the time we added
ADC to the portfolio, we sold part of our positions in Cisco, Sun Microsystems,
and Oracle. While we regard these three companies as outstanding leaders in
their respective fields, we viewed them to be too highly priced when trading at
Price to Earnings ratios over 100.
Since our semi-annual report, new additions to the portfolio include Best Foods,
Cardinal Health, Ecolab, Halliburton, WorldCom, Medtronic, SBC Communications,
and Pfizer.
<PAGE>
June 1, 2000
Page Two
When buying opportunities arise in the market, we try to take advantage of them.
For example, in March when Bristol-Myers Squibb was selling at a depressed price
of $42 per share, we added to our position. We view this stock as a good
long-term investment with a strong pipeline of new drugs, which should be
offered over the next several years. Another example is we added to our position
in Pfizer when it was trading in the low 30's. We are very positive about the
merger between Pfizer and Warner-Lambert. Their combined research and
development budget should be the largest in the industry and should offer the
resources for discovering future blockbuster drugs.
In early April, we sold positions in Procter & Gamble, SouthTrust and Charter
One Financial. This was to realize losses we had incurred in these positions and
minimize capital gains that eventually would be paid to you. With the proceeds,
we purchased depository receipts on the S&P 500 (SPDR's) rather than hold cash
in The Fund. This was to allow The Fund's portfolio to maintain market exposure.
Looking to the future, we intend to continue to focus on undervalued,
financially strong companies. In times of volatility and economic uncertainty,
it makes sense to invest in the market leaders when the prices are reasonable.
It is this philosophy that The Henssler Equity Fund has embraced and is
committed to follow.
If you would like to receive periodic information regarding The Fund, we
encourage you to visit our website at www.henssler.com. You can review The
Henssler Equity Fund link as often as you like. Each quarter through our
website, we provide details on our top 10 holdings, industry allocation, and
other statistics. We also provide on our website media appearance information
and links to articles in which The Fund's management team has been quoted.
On behalf of our board of directors and management team, we thank you for the
trust and confidence you have shown by using The Henssler Equity Fund as your
investment vehicle.
Yours very truly,
Gene W. Henssler, Ph.D. Theodore L. Parrish
Co-Manager Co-Manager
This report is intended for The Fund's shareholders. It may not be distributed
to prospective investors unless it is preceded or accompanied by the current
fund prospectus.
<PAGE>
THE HENSSLER EQUITY FUND
------------------------
PERFORMANCE OF $10,000 INITIAL INVESTMENT
For the period from June 10, 1998 (inception of fund) to April 30, 2000
[GRAPHIC OMITTED]
4/30/00
-------
THE HENSSLER EQUITY FUND $13,329
S&P Total Return $13,381
Value Line Arithmetic Index $11,245
--------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------------------------------------
One Year (ending 4-30-00) Since Inception
--------------------------------------------------------------------------------
THE HENSSLER EQUITY FUND 13.37% 16.42%
--------------------------------------------------------------------------------
S&P 500 Total Return 10.13% 16.66%
--------------------------------------------------------------------------------
Value Line Arithmetic Index 7.87% 6.40%
--------------------------------------------------------------------------------
o The graph assumes an initial $10,000 investment since inception on June 10,
1998. All dividends and distributions are reinvested.
o At April 30, 2000, the Fund would have grown to $13,329 - total annualized
investment return of 16.42% since June 10, 1998.
o At April 30, 2000, a similar investment in the S&P Total Return Index would
have grown to $13,381 - total annualized investment return of 16.66% since
June 10, 1998.
o Past performance does not predict future performance.
<PAGE>
THE HENSSLER EQUITY FUND
SCHEDULE OF INVESTMENTS APRIL 30, 2000
--------------------------------------------------------------------------------
Shares Value
------------- -------------
COMMON STOCK -- 91.53%
BASIC MATERIALS -- 4.08%
BUILDING AND CONSTRUCTION PRODUCTS
Vulcan Materials Co. 9,435 $ 413,371
-------------
BUILDING - MAINTENANCE & SERVICE
Ecolab, Inc. 6,100 238,281
-------------
FERTILIZERS
Potash Corporation of Saskatchewan, Inc. 4,650 250,228
-------------
TOTAL BASIC MATERIALS 901,880
-------------
CAPITAL GOODS -- 3.99%
AUTO-MEDIUM & HEAVY DUTY TRUCKS
Paccar, Inc. 8,850 420,928
-------------
DIVERSIFIED MANUFACTURING
General Electric Co. 2,945 463,101
-------------
TOTAL CAPITAL GOODS 884,029
-------------
COMMUNICATION SERVICES -- 5.30%
TELECOMMUNICATION SERVICES
Vodafone Airtouch PLC ADR 6,025 283,175
-------------
TELEPHONE-INTEGRATED
AT & T Corp. 6,650 310,472
CenturyTel, Inc. 9,672 236,964
MCI Worldcom, Inc.* 3,100 140,856
SBC Communications, Inc. 4,600 201,538
-------------
889,830
-------------
TOTAL COMMUNICATION SERVICES 1,173,005
-------------
CONSUMER CYCLICALS -- 4.95%
RETAIL-APPAREL/SHOES
Ross Stores, Inc. 14,970 310,628
-------------
RETAIL-BUILDING PRODUCTS
Home Depot, Inc. 6,770 379,543
-------------
RETAIL-MAJOR DEPARTMENT STORES
Target Corp. 6,085 405,033
-------------
TOTAL CONSUMER CYCLICALS 1,095,204
-------------
CONSUMER STAPLES -- 13.77%
BEVERAGES-NON-ALCOHOLIC
Pepsico, Inc. 15,175 556,733
-------------
BREWERY
Anheuser-Busch Companies, Inc. 5,885 415,260
-------------
<PAGE>
THE HENSSLER EQUITY FUND
SCHEDULE OF INVESTMENTS APRIL 30, 2000
--------------------------------------------------------------------------------
Shares Value
------------- -------------
COSMETICS & TOILETRIES
Kimberly Clark Corp. 7,535 437,501
Procter & Gamble Co. 2,450 146,081
-------------
583,582
-------------
FOOD-MISC/DIVERSIFIED
Best Foods, Inc. 4,400 221,100
-------------
FOOD-WHOLESALE/DISTRIBUTION
Sysco Corp. 13,125 493,828
-------------
MEDICAL-WHOLESALE DRUG DISTRIBUTION
Cardinal Health, Inc. 7,600 418,475
-------------
MULTIMEDIA
The Walt Disney Corp.* 4,450 192,741
-------------
RETAIL-DRUG STORES
Walgreen Co. 5,870 165,094
-------------
TOTAL CONSUMER STAPLES 3,046,813
-------------
ENERGY -- 7.22%
OIL COMPANY-INTEGRATED
Exxon/Mobil Corp. 6,007 466,669
Repsol SA ADR 12,285 253,378
Royal Dutch Petroleum Co. ADR 6,080 348,840
-------------
1,068,887
-------------
OIL-FIELD SERVICES
Halliburton Co. 4,400 194,425
Schlumberger, Ltd. 4,350 333,047
-------------
527,472
-------------
TOTAL ENERGY 1,596,359
-------------
FINANCIALS -- 12.86%
COMMERCIAL BANKS-SOUTHERN US
Charter One Financial, Inc. 3,150 63,984
Southtrust Corp. 1,600 38,200
-------------
102,184
-------------
FINANCE-CREDIT CARD
MBNA Corp. 19,742 524,397
-------------
FINANCE-MORTGAGE LOAN/BANKER
Fannie Mae 6,130 369,716
-------------
INSURANCE-LIFE/HEALTH
Jefferson Pilot Corp. 7,275 484,242
-------------
INSURANCE-MULTI-LINE
American International Group, Inc. 5,906 647,814
-------------
INVESTMENT MANAGEMENT/ADVISORY SERVICES
T. Rowe Price Associates, Inc. 3,800 144,875
-------------
MONEY CENTER BANKS
J. P. Morgan & Co., Inc. 4,445 570,627
-------------
TOTAL FINANCIALS 2,843,855
-------------
<PAGE>
THE HENSSLER EQUITY FUND
SCHEDULE OF INVESTMENTS APRIL 30, 2000
--------------------------------------------------------------------------------
Shares Value
------------- -------------
HEALTHCARE -- 14.31%
MEDICAL-BIOMEDICAL/GENES
Amgen, Inc.* 6,250 350,000
-------------
MEDICAL- DRUGS
Abbott Laboratories 4,285 164,705
Bristol-Myers Squibb Co. 11,615 609,062
Merck & Co. 5,915 411,092
Pfizer, Inc. 7,650 322,256
Schering Plough Corp. 9,120 367,650
-------------
1,874,765
-------------
MEDICAL-GENERIC DRUGS
Watson Pharmaceuticals, Inc.* 6,650 298,834
-------------
MEDICAL INSTRUMENTS
Medtronic, Inc. 6,100 316,819
-------------
MEDICAL PRODUCTS
Johnson & Johnson 3,935 324,637
-------------
TOTAL HEALTHCARE 3,165,055
-------------
TECHNOLOGY -- 25.05%
COMMERCIAL SERVICES-FINANCE
Equifax, Inc. 5,580 136,361
-------------
COMPUTER SOFTWARE
Computer Associates International, Inc. 12,090 674,773
Microsoft Corp.* 6,500 453,375
-------------
1,128,148
-------------
COMPUTER-MICRO
Dell Computer Corp.* 9,075 454,884
Sun Microsystems, Inc.* 4,650 427,509
-------------
882,393
-------------
ELECTRONIC COMPONENTS-SEMICONDUCTORS
Applied Materials, Inc.* 9,400 957,038
Intel Corp. 3,820 484,424
-------------
1,441,462
-------------
ENTERPRISE SOFTWARE/SERVICE
Oracle Corp.* 6,180 494,014
-------------
NETWORKING PRODUCTS
Cisco Systems, Inc.* 6,400 443,700
-------------
TELECOMMUNICATION EQUIPMENT
ADC Telecommunications, Inc.* 16,700 1,014,525
-------------
TOTAL TECHNOLOGY 5,540,603
-------------
TOTAL COMMON STOCK (COST $16,267,035) 20,246,803
-------------
OTHER INVESTMENTS (COST $1,580,507)-- 7.08%
S&P 500 Depository Receipts 7,200 1,047,150
SPDR - Consumer Staples 9,000 201,094
SPDR - Financial 13,000 318,500
-------------
1,566,744
-------------
<PAGE>
THE HENSSLER EQUITY FUND
SCHEDULE OF INVESTMENTS APRIL 30, 2000
--------------------------------------------------------------------------------
Shares Value
------------- -------------
REPURCHASE AGREEMENTS -- 1.42%
Fifth Third Bank, 5.38%, dated 04/28/00,
due 05/01/00, repurchase price $314,447
(collateralized by FNMA Pool #528595,
7.50%, due 01/15/30, market value
$322,884 (COST $314,306) 314,306 314,306
-------------
TOTAL INVESTMENTS (COST $18,161,848) -- 100.03% 22,127,853
LIABILITIES IN EXCESS OF OTHER ASSETS, NET -- (.03)% (7,972)
-------------
NET ASSETS -- 100% $22,119,881
=============
* Non-income producing investment.
ADR - American Depository Receipt
Cost for federal income tax at April 30, 2000
was $18,161,848 and net unrealized appreciation
consisted of:
Gross unrealized appreciation $4,383,651
Gross unrealized depreciation (417,646)
-------------
Net unrealized appreciation $3,966,005
-------------
See notes to financial statements.
<PAGE>
THE HENSSLER EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 2000
--------------------------------------------------------------------------------
ASSETS:
Investments, at market (identified cost $18,161,848) $ 22,127,853
Receivables:
Dividends and interest 9,482
Fund shares sold 3,773
------------
Total assets 22,141,108
------------
LIABILITIES:
Payables:
Due to advisor 21,227
------------
Total liabilities 21,227
------------
NET ASSETS $ 22,119,881
============
NET ASSETS CONSIST OF:
Common stock $ 166
Additional capital paid - in 18,145,133
Accumulated undistributed realized gains on investments 8,577
Net unrealized gain on investments 3,966,005
------------
Net Assets, for 1,664,384 shares outstanding $ 22,119,881
============
Net Asset Value, offering and redemption price per share $ 13.29
============
See notes to financial statements.
<PAGE>
THE HENSSLER EQUITY FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 14,071
Dividends 232,771
------------
Total investment income 246,842
------------
EXPENSES:
Investment advisory fees 94,823
Administration fee 132,753
------------
Total expenses 227,576
------------
Net investment income 19,266
------------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments 17,744
Net change in unrealized appreciation on investments 2,401,997
------------
Net gain on investments 2,419,741
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,439,007
============
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
THE HENSSLER EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED APRIL 30, 2000
-----------------------------------------------------------------------------------------------
YEAR ENDED PERIOD ENDED
APRIL 30, 2000 APRIL 30, 1999*
------------ ------------
Operations:
<S> <C> <C>
Net investment income $ 19,266 12,747
Net realized gain on investments 17,744 3,929
Net change in unrealized appreciation on investments 2,401,997 1,564,010
------------ ------------
Net increase in net assets resulting from operations 2,439,007 1,580,686
------------ ------------
Distributions to shareholders from:
Net investment income (28,434) (14,748)
Net realized gains (1,927) --
------------ ------------
(30,361) (14,748)
------------ ------------
Capital Share Transactions:
Proceeds from shares sold 9,783,270 14,897,761
Proceeds from shares issued to holders in
reinvestment of dividends 29,758 14,749
Cost of shares redeemed (5,781,663) (798,578)
------------ ------------
Increase in net assets from Fund share transactions 4,031,365 14,113,932
------------ ------------
Increase in net assets 6,440,011 15,679,870
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE HENSSLER EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED APRIL 30, 2000
-----------------------------------------------------------------------------------------------
NET ASSETS:
<S> <C> <C>
Beginning of period 15,679,870 --
------------ ------------
End of period (including acumulated net
investment income of 0 and 0, respectively) $ 22,119,881 15,679,870
============ ============
</TABLE>
* The Henssler Equity Fund commenced operations on June 10, 1998.
<PAGE>
THE HENSSLER EQUITY FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
The table below sets forth financial data for one share of capital stock
outstanding throughout each period presented.
FOR THE YEAR FOR THE PERIOD
ENDED ENDED
APRIL 30, 2000 APRIL 30, 1999*
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.74 $ 10.00
------------ ------------
Income From Investment Operations:
Net investment income 0.01 0.02
Net gains on securities (both realized
and unrealized) 1.56 1.74
------------ ------------
Total from investment operations 1.57 1.76
------------ ------------
Distributions:
Net investment income (0.02) (0.02)
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 13.29 $ 11.74
============ ============
TOTAL RETURN 13.37% 17.57%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000s) $ 22,120 $ 15,680
Ratio of expenses to average net assets 1.20% 1.20%1
Ratio of net investment income to
average net assets 0.10% 0.17%1
Portfolio turnover rate 58% 14%
* The Henssler Equity Fund commenced operations on June 10, 1998.
1 Annualized
See notes to financial statements.
<PAGE>
THE HENSSLER EQUITY FUND
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
APRIL 30, 2000
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Henssler Equity Fund (the "Company") was incorporated under the laws of
the state of Maryland on February 12, 1998, and consists solely of The Henssler
Equity Fund (the "Fund"). The Company is registered as a no-load, open-end
diversified management investment company of the series type under the
Investment Company Act of 1940 (the "1940 Act"). The Company has an authorized
capital of 100,000,000 shares, classified as shares of common stock with a par
value of $.0001 per share. The Fund's investment strategy is to emphasize
long-term capital appreciation and safety of principal. The Fund became
effective with the SEC on June 8, 1998 and commenced operations on June 10,
1998.
The costs incurred in connection with the organization, initial
registration and public offering of shares have been paid by Henssler Asset
Management, LLC (the "Advisor"). Accordingly, no organization costs have been
recorded by the Fund.
The following is a summary of significant accounting policies consistently
followed by the Fund.
a) Investment Valuation--Common stocks and other equity-type securities listed
on a securities exchange are valued at the last quoted sales price on the
day of the valuation. Price information on listed stocks is taken from the
exchange where the security is primarily traded. Securities that are listed
on an exchange but which are not rated on the valuation date are valued at
the most recent bid prices. Other assets and securities for which no
quotations are readily available are valued at fair value as determined in
good faith by the Investment manager under the supervision of the Board of
Directors. Short-term instruments (those with remaining maturities of 60
days or less) are valued at amortized cost, which approximates fair market
value.
b) Repurchase agreements--In connection with transactions in repurchase
agreements, it is the Funds policy that its custodian take possession of
the underlying collateral securities, the fair market value which exceeds
the principal amount of the repurchase transaction, including accrued
interest, at all times. If the seller defaults, and the fair market value
of the collateral declines, realization of the collateral by the Fund may
be delayed or limited.
c) Federal Income Taxes--No provision for federal income taxes has been made
since the Fund has complied to date with the provision of the Internal
Revenue Code applicable to regulated investment companies and intends to so
comply in the future and to distribute substantially all of its net
investment income and realized capital gains in order to relieve the Fund
from all federal income taxes.
d) Distributions to Shareholders--Dividends from net investment income and
distributions of net realized capital gains, if any, will be declared and
paid at least annually. Income and
<PAGE>
THE HENSSLER EQUITY FUND
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
APRIL 30, 2000
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES-(CONTINUED)
capital gains distributions are determined in accordance with income tax
regulations, which may differ from generally accepted accounting principles.
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 period. Actual results could differ from
those estimates.
f) Other--Investment and shareholder transactions are recorded on trade date.
The Fund determines the gain or loss realized from the investment
transactions by comparing the original cost of the security lot sold with
the net sales proceeds. Dividend income is recognized on the ex-dividend
date or as soon as information is available to the Fund, and interest
income is recognized on an accrual basis.
2. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Fund were as follows:
YEAR ENDED PERIOD ENDED
APRIL 30, 2000 APRIL 30, 1999
-------------- --------------
Sold ................................ 811,641 1,404,150
Reinvested .......................... 2,320 1,323
Redeemed ............................ (484,957) (70,094)
Net Increase ........................ 329,004 1,335,379
3. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of investments, excluding short-term
investments, by the Fund for the year ended April 30, 2000, were as follows:
Purchases: $14,815,515
Sales: 10,778,435
4. ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
The Fund has entered into a Management Agreement with Henssler Asset
Management, LLC (the "Advisor") to provide investment management services to the
Fund. Pursuant to the Advisory Agreement, the Advisor is entitled to receive a
fee, calculated daily and payable monthly at the annual rate of 0.50% as applied
to the Fund's daily net assets. For the year ended April 30, 2000, the Advisor
received advisory fees of $94,823.
<PAGE>
THE HENSSLER EQUITY FUND
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
APRIL 30, 2000
4. ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
(CONTINUED)
The Fund has entered into an Operating Services Agreement (the "Servicing
Agreement") with the Advisor to provide or arrange for day-to-day operational
services to the Fund. Pursuant to the Servicing Agreement, the Advisor is
entitled to receive a fee, calculated daily and payable monthly at the annual
rate of 0.70% as applied to the Fund's daily net assets. For the year ended
April 30, 2000, the Advisor received fees of $132,753.
The Fund and the Advisor have entered into an Investment Company Services
Agreement (the "ICSA") with Declaration Service Company to provide day-to-day
operational services to the Fund including, but not limited to, accounting,
administrative, transfer agent, dividend disbursing, registrar and recordkeeping
services.
The Fund and the Advisor have entered into a Distribution Agreement with
Declaration Distributors, Inc. to provide distribution services to the Fund.
Declaration Distributors, Inc. serves as underwriter/distributor of the Fund.
Certain directors and officers of the Fund are directors and officers of
the Advisor.
The beneficial ownership, either directly or indirectly, of more than 25%
of the voting securities of a Fund creates a presumption of control of the Fund,
under Section 2(a)(9) of the Investment Company Act of 1940. As of April 30,
2000, Charles Schwab & Co., owned of record in aggregate more than 73% of the
Henssler Equity Fund.
5. REVOLVING LINE OF CREDIT
Revolving Credit Agreement--The Fund has a $5,000,000 Revolving Credit
Agreement with Fifth Third Bank; Borrowings under this arrangement bear interest
at the Overnight Funds Rate in effect on the day the loan is made. The Overnight
Funds Rate means the rate of interest on overnight funds which the Bank is
offering to other borrowers and potential borrowers of comparable financial
condition to borrower on the business day a loan is made, pursuant to this
agreement. As of April 30, 2000 there were no outstanding balances.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
----------------------------
To The Shareholders and
Board of Directors
Henssler Equity Fund
We have audited the accompanying statement of assets and liabilities of the
Henssler Equity Fund, including the schedule of portfolio investments, as of
April 30, 2000, and the related statement of operations, the statement of
changes in net assets, and financial highlights for each of the periods
indicated. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments and cash held as
of April 30, 2000 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Henssler Equity Fund as of April 30, 2000, the results of its operations, the
changes in its net assets, and the financial highlights for each of the periods
indicated in conformity with generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
May 16, 2000
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<PAGE>
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<PAGE>
ADVISER
-------
Henssler Asset Management, LLC
1281 Kennestone Circle, Suite 100
Marietta, Georgia 30066
DISTRIBUTOR
-----------
Declaration Distributors, Inc.
555 North Lane, Suite 6160
Conshohocken, PA 19428
CUSTODIAN
---------
The Fifth Third Bank, N.A.
38 Fountain Square Plaza
Cincinnati, Ohio 45263
TRANSFER, REDEMPTION, AND DIVIDEND DISBURSING AGENT
---------------------------------------------------
Declaration Service Company
555 North Lane, Suite 6160
Conshohocken, PA 19428
INDEPENDENT ACCOUNTANTS
-----------------------
McCurdy & Associates CPA's, Inc.
27955 Clemens Road
Westlake, Ohio 44145
LEGAL COUNSEL
-------------
Law Offices of Stephanie A. Djinis
7918 Jones Branch Drive, Suite 600
McLean, Virginia 22102
