THE NEVIS FUND, INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
NOVEMBER 30, 1999
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STATEMENT OF NET ASSETS THE NEVIS FUND, INC.
November 30, 1999 (unaudited)
Market
Value
Shares (000)
--------- -----------
COMMON STOCKS (91.2%)
BROADCASTING, NEWSPAPERS & ADVERTISING (9.6%)
Acme Communications Inc* 40,000 $ 1,352
Clear Channel Communications* 48,400 3,890
Entercom Communications* 10,000 572
Radio One* 11,500 727
Salem Communications Cl A* 25,000 417
Wireless Facilities* 10,000 540
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7,498
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CONTAINERS & PACKAGING (0.8%)
US Can* 32,700 585
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585
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DEFENSE EQUIPMENT (2.8%)
Armor Holdings* 181,600 2,145
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2,145
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MEDICAL PRODUCTS & SERVICES (5.4%)
Connetics* 502,300 3,391
Staar Surgical* 40,000 395
Women First Healthcare * 72,400 443
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4,229
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MISCELLANEOUS BUSINESS SERVICES (43.9%)
CSG Systems International* 65,600 2,862
Hyperion Solutions* 170,000 4,654
Integrated Systems* 101,900 2,923
Network Associates* 140,600 3,550
Primus Knowledge Solution* 200,500 9,624
Rational Software* 107,750 5,509
Software.com* 25,000 2,427
Transaction Systems Architects* 75,200 2,627
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34,176
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PROFESSIONAL SERVICES (0.1%)
Caliber Learning Network* 39,400 78
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78
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RETAIL (3.9%)
Peapod Inc* 345,500 3,002
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3,002
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SEMI-CONDUCTORS/INSTRUMENTS (5.5%)
Vicor* 89,675 2,903
Vitesse Semiconductor* 31,000 1,397
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4,300
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STATEMENT OF NET ASSETS THE NEVIS FUND, INC.
November 30, 1999 (concluded) (unaudited)
Shares/Face Market
Amount Value
(000) (000)
----------- ------------
TELEPHONES & TELECOMMUNICATION (19.2%)
American Tower Systems* 247,560 $ 6,467
Convergent Communications* 157,000 1,717
Global TeleSystems Group* 100,000 3,194
Net2Phone* 30,000 1,740
SBA Communications* 159,000 1,828
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14,946
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TOTAL COMMON STOCKS
(Cost $53,708) 70,959
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REPURCHASE AGREEMENT (12.4%)
J.P. Morgan
5.250%, dated 11/30/99, matures
12/1/99, repurchase price $9,652,966
(collateralized by U.S. Treasury
Instruments: total market value
$9,895,255) (A) $9,653 9,653
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TOTAL REPURCHASE AGREEMENT
(Cost $9,653) 9,653
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TOTAL INVESTMENTS (103.6%)
(Cost $63,361) 80,612
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OTHER ASSETS AND LIABILITIES, NET (-3.6%) (2,835)
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NET ASSETS:
Portfolio shares (100,000,000 shares
authorized -- par value $.01 per share authorized)
based on 2,458,744 outstanding shares of common stock 60,307
Accumulated net investment loss (176)
Accumulated net realized gain on investments 395
Net unrealized appreciation on investments 17,251
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TOTAL NET ASSETS (100.0%) $77,777
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Net Asset Value, Offering and Redemption Price Per Share $ 31.63
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* NON-INCOME PRODUCING SECURITY
CL -- CLASS
(A) -- TRI-PARTY REPURCHASE AGREEMENT
The accompanying notes are an integral part of the financial statements.
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STATEMENT OF OPERATIONS THE NEVIS FUND, INC.
For the Period Ended November 30, 1999 (unaudited)
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6/1/99
to
11/30/99
(000)
------------
INVESTMENT INCOME:
Interest Income $ 58
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Total Investment Income 58
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EXPENSES:
Investment Advisory Fees (See Note 4) 227
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Total Expenses 227
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Net Investment Loss (169)
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Net Realized Gain on Investments 2,986
Net Change in Unrealized Appreciation on Investments 16,521
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Net Realized and Unrealized Gain on Investments 19,507
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Net Increase in Net Assets Resulting from Operations $19,338
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The accompanying notes are an integral part of the financial statements.
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STATEMENT OF CHANGES IN NET ASSETS THE NEVIS FUND, INC.
For the six-month period ended November 30, 1999 (unaudited) and for the
year ended May 31, 1999
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6/1/99 6/29/98*
to to
11/30/99 5/31/99
(000) (000)
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INVESTMENT ACTIVITIES:
Net Investment Loss $ (169) $ (23)
Net Realized Gain on Investments 2,986 2,045
Net Change in Unrealized Appreciation
on Investments 16,521 730
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Net Increase in Net Assets Resulting
From Operations 19,338 2,752
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DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income -- --
Realized Capital Gains (4,620) --
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Total Distributions (4,620) --
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SHARE TRANSACTIONS:
Proceeds from Shares Issued 53,309 7,239
Reinvestment of Cash Distributions 4,421 --
Cost of Shares Repurchased (4,646) (16)
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Increase in Net Assets from Capital
Share Transactions 53,084 7,223
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TOTAL INCREASE IN NET ASSETS 67,802 9,975
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NET ASSETS:
Beginning of Period 9,975 --
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NET ASSETS:
End of Period 77,777 $9,975
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CAPITAL SHARE TRANSACTIONS:
Shares Issued 1,956 526
Shares Issued in Lieu of Cash Distributions 153 --
Shares Redeemed (175) (1)
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NET INCREASE IN CAPITAL SHARES TRANSACTIONS 1,934 525
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AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
* COMMENCEMENT OF OPERATIONS
The accompanying notes are an integral part of the financial statements.
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FINANCIAL HIGHLIGHTS THE NEVIS FUND, INC.
For a Share Outstanding for the Period Ended November 30, 1999 (unaudited)
For the Year Ended May 31, 1999
<TABLE>
<CAPTION>
Realized Ratio
Net and Net Net of Net
Asset Unrealized Distributions Asset Assets Ratio Investment
Value Net Gains From Value End of Expenses Loss Portfolio
Beginning Investment on Capital End Total of Period to Average to Average Turnover
of Period Loss Securities Gains of Period Return+ (000) Net Assets Net Assets Rate
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999 $19.01 $(0.03) $15.30 $(2.65) $31.63 81.65% $77,777 1.50%* (1.12)%* 38.94%
1999(1) 10.00 (0.01) 9.02 -- 19.01 90.10 9,975 1.50* (1.03)* 251.60
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</TABLE>
* ANNUALIZED
+ TOTAL RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
(1) THE NEVIS FUND, INC. COMMENCED OPERATIONS ON JUNE 29, 1998.
The accompanying notes are an integral part of the financial statements.
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NOTES TO FINANCIAL STATEMENTS THE NEVIS FUND, INC.
November 30, 1999 (unaudited)
1. ORGANIZATION:
THE NEVIS FUND, INC. (the "Fund") was incorporated in Maryland on February 20,
1998. The Fund is registered under the Investment Company Act of 1940, as
amended, as a non-diversified open-end management investment company. The Fund's
prospectus provides a description of the Fund's investment goals and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Fund.
SECURITY VALUATION -- Investments for which market quotations are readily
available are stated at market value, which is determined using the last
reported sale price from the exchange where the security is primarily traded.
If no sales are reported, as in the case of some securities traded
over-the-counter, the market value is determined by using the last reported
bid price. Short term investments that have remaining maturities of sixty
days or less at time of purchase are valued at amortized cost, if it
approximates market value. The value of other assets and securities for which
no quotations are readily available is determined in good faith at fair value
following procedures approved by the Board of Directors.
FEDERAL INCOME TAXES -- It is the Fund's intention to qualify as a regulated
investment company by complying with the appropriate provisions of the
Internal Revenue Code of 1986, as amended. Accordingly, no provision for
federal income taxes is required.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Costs used in determining realized gains and losses on the sales of
investment securities are based on the specific identification method.
Interest income is recognized on the accrual basis. Dividend income is
recorded on the ex-date.
NET ASSET VALUE PER SHARE -- The net asset value per share of the Fund is
calculated on each business day by dividing the total value of assets, less
liabilities, by the number of shares outstanding.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income are
declared and paid to shareholders annually. Any net realized capital gains
are distributed to shareholders at least annually.
Distributions from net investment income and net realized capital gains are
determined in accordance with the U.S. federal income tax regulations, which
may differ from those amounts determined under generally accepted accounting
principles. These book/tax differences are either temporary or permanent in
nature. To the extent these differences are permanent, they are charged or
credited to paid-in capital in the period that the differences arise. These
reclassifications have no effect on net assets or net asset value.
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 amount 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.
3. ORGANIZATIONAL COSTS AND TRANSACTIONS WITH AFFILIATES:
Organizational costs have been capitalized by the Fund and are being amortized
over sixty months commencing on the date of inception of the Fund. In the event
the initial shares of the Fund are redeemed by any holder thereof during the
period that the Fund is amortizing its organizational costs, the redemption
proceeds payable to the holder thereof by the Fund will be reduced by the
unamortized organizational costs in the same ratio as the number of initial
shares being redeemed bears to the number of initial shares outstanding at the
time of redemption.
4. INVESTMENT MANAGEMENT ARRANGEMENTS:
The Fund and Nevis Capital Management, Inc. (the "Adviser") are parties to an
Investment Management Agreement under which the Adviser receives an annual fee
equal to 1.50% of the average daily net assets of the Fund. Pursuant to its
Investment Management Agreement with the Fund, the Adviser has agreed to bear
all ordinary expenses incurred by the Fund in the conduct of its operations. The
Fund will bear any extraordinary expenses incurred in the course of its
business.
5. ADMINISTRATION, TRANSFER AGENCY AND SERVICES, CUSTODIAN AND DISTRIBUTION
AGREEMENTS:
As discussed above, the Adviser has agreed to bear all ordinary expenses
incurred in the conduct of the Fund's operations. This includes the following
contractual relationships:
The Fund and SEI Investments Mutual Funds Services (the "Administrator") are
parties to an Administration Agreement under which the Administrator provides
administrative services for an annual fee, computed daily and paid monthly, at
the annual rate of 0.12% of the first $100 million of the average daily net
assets of the Fund, 0.10% of the next $100 million of such assets, and 0.08% of
such assets in excess of $200 million subject to a minimum annual fee of
$90,000.
Forum Shareholder Services, LLC (the "Transfer Agent") serves as the
transfer agent and dividend disbursing agent
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NOTES TO FINANCIAL STATEMENTS (CONCLUDED) THE NEVIS FUND, INC.
November 30, 1999 (unaudited)
for the Fund under a Transfer Agency and Services Agreement with the Fund.
The Fund and SEI Investments Distribution Co. (the "Distributor") are parties to
a Distribution Agreement. The Distributor receives no fees for its distribution
services under this agreement.
First Union National Bank serves as custodian (the "Custodian") for the Fund.
The Custodian plays no role in determining the investment policies of the Fund
or which securities are to be purchased and sold by the Fund.
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the period ended November 30, 1999 were as follows:
The Nevis Fund, Inc.
(000)
-----------------
Purchases
U.S. Gov't ............................ $ --
Other ................................. 55,085
Sales
U.S. Gov't ............................ $ --
Other ................................. 11,832
At November 30, 1999, the total cost of securities and the net realized gains or
losses on securities sold for federal income tax purposes were not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the Fund
at November 30, 1999, is as follows:
The Nevis Fund, Inc.
(000)
-----------------
Aggregate gross unrealized
appreciation ......................... $19,775
Aggregate gross unrealized
depreciation ......................... (2,524)
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Net unrealized appreciation ............ $17,251
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NOTES
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INVESTMENT ADVISER
Nevis Capital Management, Inc.
1119 St. Paul Street
Baltimore, MD 21202
ADMINISTRATOR
SEI Investments Mutual Funds Services
One Freedom Valley Drive
Oaks, PA 19456
DISTRIBUTOR
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
LEGAL COUNSEL
Piper & Marbury LLP
36 S. Charles Street
Baltimore, MD 21201
INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP
1601 Market Street
Philadelphia, PA 19103-2499
NEV-F-002-02
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