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THE SIMMS FUNDS
U.S. EQUITY FUND
INTERNATIONAL
EQUITY FUND
GLOBAL EQUITY FUND
SEMI-ANNUAL REPORT
DECEMBER 31, 1999
(SIMMS CAPITAL MANAGEMENT, INC. GLOBAL INVESTORS LOGO)
THE SIMMS FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1999 (Unaudited)
<TABLE>
U.S. INTERNATIONAL GLOBAL
EQUITY FUND EQUITY FUND EQUITY FUND
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS
Investments in securities at market value
(identified cost $10,125,345, $9,029,340 and
$7,092,739, respectively) (Note 2) $12,129,415 $14,041,897 $7,454,366
Dividends and interest receivable 4,296 5,795 577
Receivable from Adviser 9,653 -- 11,342
Other assets 19,028 19,188 16,885
----------- ----------- ----------
Total assets 12,162,392 14,066,880 7,483,170
----------- ----------- ----------
LIABILITIES
Payable for investment purchased 2,852,352 -- 3,056,099
Payable for Adviser -- 337 --
Accrued expenses and other liabilities 38,221 42,437 38,438
----------- ----------- ----------
Total liabilities 2,890,573 42,774 3,094,537
----------- ----------- ----------
NET ASSETS $ 9,271,819 $14,024,106 $4,388,633
----------- ----------- ----------
----------- ----------- ----------
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 7,257,851 $ 8,936,648 $4,029,379
Accumulated net realized gain (loss) on investments 9,898 74,901 (2,373)
Net unrealized appreciation on investments 2,004,070 5,012,557 361,627
----------- ----------- ----------
Net assets $ 9,271,819 $14,024,106 $4,388,633
----------- ----------- ----------
----------- ----------- ----------
CLASS A
Net assets $128,568 $425,366 $190,399
Shares of beneficial interest outstanding
(unlimited shares, no par value) 9,401 26,252 12,764
Net asset value and redemption price per share $13.68 $16.21 $14.92
------ ------ ------
------ ------ ------
Maximum offering price per share $14.25 $16.89 $15.54
------ ------ ------
------ ------ ------
CLASS Y
Net assets $ 9,143,251 $13,598,740 $4,198,234
Shares of beneficial interest outstanding
(unlimited shares, no par value) 663,218 833,323 279,321
Net asset value, offering and redemption price per share $13.78 $16.32 $15.03
------ ------ ------
------ ------ ------
</TABLE>
See notes to financial statements
THE SIMMS FUNDS
STATEMENTS OF OPERATIONS
For the Period Ended December 31, 1999
(Unaudited)
<TABLE> U.S. INTERNATIONAL GLOBAL
EQUITY FUND EQUITY FUND EQUITY FUND
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $0, $2,808
and $161, respectively) $ 10,599 $ 23,638 $ 2,325
Interest 10,337 11,599 2,466
-------- ---------- --------
Total investment income 20,936 35,237 4,791
-------- ---------- --------
EXPENSES:
Investment advisory fees 20,561 46,707 4,989
Shareholder servicing and accounting 30,541 37,869 28,970
Professional fees 14,507 15,681 5,702
Trustees' fees and expenses 920 920 920
Administration fees 22,233 22,585 21,683
Reports to shareholders 2,755 2,734 345
Federal and state registration fees 18,407 19,903 15,387
Custody fees 1,694 2,933 2,348
Other 3,799 4,636 782
Distribution fees - Class A 148 789 387
Shareholder servicing fees - Class A 74 395 193
-------- ---------- --------
Total expenses before reimbursements 115,639 155,152 81,706
Less: Reimbursements from Adviser (79,511) (77,836) (73,742)
-------- ---------- --------
Net expenses 36,128 77,316 7,964
-------- ---------- --------
NET INVESTMENT LOSS (15,192) (42,079) (3,173)
-------- ---------- --------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain on investments 76,814 229,921 17,607
Change in unrealized appreciation on investments 918,095 4,484,804 284,967
-------- ---------- --------
Net realized and unrealized gain on investments 994,909 4,714,725 302,574
-------- ---------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $979,717 $4,672,646 $299,401
-------- ---------- --------
-------- ---------- --------
</TABLE>
See notes to financial statements
THE SIMMS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
U.S. EQUITY FUND
------------------------------------------------------
FOR SIX MONTHS ENDED FOR THE PERIOD
DECEMBER 31, 1999 DECEMBER 11, 1998 (1)<F1> TO
(UNAUDITED) JUNE 30, 1999
-------------------- -----------------------------
<S> <C> <C>
OPERATIONS:
Net investment loss $ (15,192) $ (10,547)
Net realized gain 76,814 2,080
Change in unrealized appreciation on investments 918,095 1,085,975
---------- ----------
Net increase in net assets resulting from operations 979,717 1,077,508
---------- ----------
CAPITAL SHARE TRANSACTIONS: (NOTE 4)
Net increase in net assets resulting from
capital share transactions 3,479,813 4,087,304
---------- ----------
DISTRIBUTION TO CLASS A SHAREHOLDERS FROM:
Net realized gains (8,168) --
---------- ----------
DISTRIBUTION TO CLASS Y SHAREHOLDERS FROM:
Net realized gains (394,355) --
---------- ----------
Total increase in net assets 4,057,007 5,164,812
NET ASSETS:
Beginning of period 5,214,812 50,000
---------- ----------
End of period $9,271,819 $5,214,812
---------- ----------
---------- ----------
</TABLE>
(1)<F1> Commencement of operations.
See notes to financial statements
<TABLE>
INTERNATIONAL EQUITY FUND
------------------------------------------------------
FOR SIX MONTHS ENDED FOR THE PERIOD
DECEMBER 31, 1999 DECEMBER 11, 1998 (1)<F2> TO
(UNAUDITED) JUNE 30, 1999
----------------- ----------------------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (42,079) $ 12,552
Net realized gain (loss) 229,921 (129,222)
Change in unrealized appreciation on investments 4,484,804 527,753
----------- ----------
Net increase in net assets resulting from operations 4,672,646 411,083
----------- ----------
CAPITAL SHARE TRANSACTIONS: (NOTE 4)
Net increase in net assets resulting from
capital share transactions 4,160,674 5,053,197
----------- ----------
DISTRIBUTION TO CLASS A SHAREHOLDERS FROM:
Net realized gains (9,505) --
----------- ----------
DISTRIBUTION TO CLASS Y SHAREHOLDERS FROM:
Net investment income (11,524) --
Net realized gains (302,465) --
----------- ----------
Total distribution (313,989) --
----------- ----------
Total increase in net assets 8,509,826 5,464,280
NET ASSETS:
Beginning of period 5,514,280 50,000
----------- ----------
End of period $14,024,106 $5,514,280
----------- ----------
----------- ----------
</TABLE>
(1)<F2> Commencement of operations.
See notes to financial statements
<TABLE>
GLOBAL EQUITY FUND
------------------------------------------------------
FOR SIX MONTHS ENDED FOR THE PERIOD
DECEMBER 31, 1999 DECEMBER 18, 1998 (1)<F3> TO
(UNAUDITED) JUNE 30, 1999
-------------------- ----------------------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (3,173) $ 903
Net realized gain (loss) 17,607 (16,807)
Change in unrealized appreciation on investments 284,967 76,660
---------- ----------
Net increase in net assets resulting from operations 299,401 60,756
---------- ----------
CAPITAL SHARE TRANSACTIONS: (NOTE 4)
Net increase in net assets resulting from
capital share transactions 3,169,296 860,073
---------- ----------
DISTRIBUTION TO CLASS Y SHAREHOLDERS FROM:
Net investment income (903) --
---------- ----------
Total increase in net assets 3,467,794 920,829
NET ASSETS:
Beginning of period 920,839 10
---------- ----------
End of period $4,388,633 $920,839
---------- ----------
---------- ----------
</TABLE>
(1)<F3> Commencement of operations.
See notes to financial statements
THE SIMMS FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
U.S. EQUITY FUND
-------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED APRIL 26, 1999(1)<F4> DECEMBER 11, 1998(1)<F4>
DECEMBER 31, 1999 DECEMBER 31, 1999 THROUGH THROUGH
(UNAUDITED) (UNAUDITED) JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- --------------------- ------------------------
CLASS A CLASS Y CLASS A CLASS Y
----------------- ----------------- --------------------- ------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period $12.50 $12.51 $12.20 $10.00
------ ------ ------ ------
Income from investment operations:
Net investment loss (0.09)(2)<F5> (0.02)(3)<F6> (0.02)(3)<F6> (0.03)(3)<F6>
Net realized and unrealized
gains on investments 2.20 2.22 0.32 2.54
------ ------ ------ ------
Total from investment operations 2.11 2.20 0.30 2.51
------ ------ ------ ------
Less distributions from
net realized gains (0.93) (0.93) -- --
------ ------ ------ ------
Net asset value, end of period $13.68 $13.78 $12.50 $12.51
------ ------ ------ ------
------ ------ ------ ------
Total return (4)<F7> (5)<F8> 17.19% 17.90% 2.46% 25.10%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period $128,568 $9,143,251 $983 $5,213,829
Ratio of expenses to average net
assets before reimbursement
by Adviser (6)<F9> 4.96% 4.21% 8.39% 5.59%
Ratio of expenses to average net
assets after reimbursement
by Adviser (6)<F9> 2.06% 1.31% 2.06% 1.31%
Ratio of net investment loss to
average net assets before
reimbursement by Adviser (6)<F9> (4.20%) (3.45%) (7.38%) (4.70%)
Ratio of net investment loss to
average net assets after
reimbursement by Adviser (6)<F9> (1.30%) (0.55%) (1.06%) (0.42%)
Portfolio turnover rate (7)<F10> 12.74% 12.74% 50.40% 50.40%
</TABLE>
(1)<F4> Commencement of operations for Class Y shares occurred on December 11,
1998 for the U.S. Equity Fund. Commencement of sale of Class A shares
occurred on April 26, 1999 for the U.S. Equity Fund.
(2)<F5> Net investment loss per share represents net investment loss divided
by the average shares outstanding throughout the period.
(3)<F6> Net investment loss per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
(4)<F7> The total return does not reflect the 4.00% maximum sales charge for
Class A shares.
(5)<F8> Not annualized.
(6)<F9> Annualized.
(7)<F10> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements
<TABLE>
INTERNATIONAL EQUITY FUND
-----------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED FEBRUARY 1, 1999(1)<F11> DECEMBER 11, 1998(1)<F11>
DECEMBER 31, 1999 DECEMBER 31, 1999 THROUGH THROUGH
(UNAUDITED) (UNAUDITED) JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- ------------------------ -------------------------
CLASS A CLASS Y CLASS A CLASS Y
----------------- ----------------- ------------------------ -------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period $10.88 $10.91 $10.54 $10.00
------ ------ ------ ------
Income from investment operations:
Net investment income(loss) (0.10)(2)<F12> (0.01) -- 0.03
Net realized and unrealized
gains on investments 5.80 5.80 0.34 0.88
------ ------ ------ ------
Total from investment operations 5.70 5.79 0.34 0.91
------ ------ ------ ------
Less distributions:
Dividends in excess of
net investment income -- (0.01) -- --
Distributions from net realized gains (0.37) (0.37) -- --
------ ------ ------ ------
Total distributions (0.37) (0.38) -- --
------ ------ ------ ------
Net asset value, end of period $16.21 $16.32 $10.88 $10.91
------ ------ ------ ------
------ ------ ------ ------
Total return (3)<F13> (4)<F14> 52.85% 53.59% 3.23% 9.10%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period $425,366 $13,598,740 $160,421 $5,353,859
Ratio of expenses to average net
assets before reimbursement
by Adviser (5)<F15> 4.05% 3.30% 6.54% 5.52%
Ratio of expenses to average net
assets after reimbursement
by Adviser (5)<F15> 2.38% 1.63% 2.38% 1.63%
Ratio of net investment loss to
average net assets before
reimbursement by Adviser (5)<F15> (3.29%) (2.54%) (4.14%) (3.48%)
Ratio of net investment income (loss)
to average net assets after
reimbursement by Adviser (5)<F15> (1.62%) (0.87%) 0.02% 0.42%
Portfolio turnover rate (6)<F16> 46.90% 46.90% 49.48% 49.48%
</TABLE>
(1)<F11> Commencement of operations for Class Y shares occurred on December 11,
1998 for the International Equity Fund. Commencement of sale of Class
A shares occurred on February 1, 1999 for the International Equity
Fund.
(2)<F12> Net investment loss per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
(3)<F13> The total return does not reflect the 4.00% maximum sales charge for
Class A shares.
(4)<F14> Not annualized.
(5)<F15> Annualized.
(6)<F16> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements
<TABLE>
GLOBAL EQUITY FUND
-------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED FEBRUARY 19, 1999(1)<F17> DECEMBER 11, 1998(1)<F17>
DECEMBER 31, 1999 DECEMBER 31, 1999 THROUGH THROUGH
(UNAUDITED) (UNAUDITED) JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- ------------------------- -------------------------
CLASS A CLASS Y CLASS A CLASS Y
----------------- ----------------- ------------------------- -------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period $11.22 $11.27 $10.41 $10.00
------ ------ ------ ------
Income from investment operations:
Net investment income(loss) (0.08)(2)<F18> (0.01)(3)<F19> (0.00) 0.01
Net realized and unrealized
gains on investments 3.78 3.78 0.81 1.26
------ ------ ------ ------
Total from investment operations 3.70 3.77 0.81 1.27
------ ------ ------ ------
Less dividends in excess of
net investment income -- (0.01) -- --
------ ------ ------ ------
Net asset value, end of period $14.92 $15.03 $11.22 $11.27
------ ------ ------ ------
------ ------ ------ ------
Total return (4)<F20> (5)<F21> 32.98% 33.50% 7.78% 12.70%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period $190,399 $4,198,234 $143,194 $777,645
Ratio of expenses to average net
assets before reimbursement
by Adviser (6)<F22> 17.01% 16.26% 32.84% 37.44%
Ratio of expenses to average net
assets after reimbursement
by Adviser (6)<F22> 2.23% 1.48% 2.23% 1.48%
Ratio of net investment loss to
average net assets before
reimbursement by Adviser (6)<F22> (16.05%) (15.30%) (30.77%) (35.61%)
Ratio of net investment income (loss)
to average net assets after
reimbursement by Adviser (6)<F22> (1.27%) (0.52%) (0.15%) 0.35%
Portfolio turnover rate (7)<F23> 28.60% 28.60% 28.70% 28.70%
</TABLE>
(1)<F17> Commencement of operations for Class Y shares occurred on December 18,
1998 for the Global Equity Fund. Commencement of sale of Class A
shares occurred on February 19, 1999 for the Global Equity Fund.
(2)<F18> Net investment loss per share represents net investment loss divided
by the average shares outstanding throughout the period.
(3)<F19> Net investment loss per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
(4)<F20> The total return does not reflect the 4.00% maximum sales charge for
Class A shares.
(5)<F21> Not annualized.
(6)<F22> Annualized.
(7)<F23> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements
THE SIMMS FUNDS
U.S. EQUITY FUND
SCHEDULE OF INVESTMENTS
December 31, 1999 (Unaudited)
SHARES VALUE
------ -----
COMMON STOCKS -- 95.9%
AEROSPACE -- 3.1%
4,920 Honeywell International Inc. $ 283,822
----------
BUSINESS SERVICES -- 10.9%
4,860 Cisco Systems, Inc.*<F24> 520,627
4,940 Omnicom Group Inc. 494,000
----------
1,014,627
----------
COMPUTERS -- 13.2%
3,560 Dell Computer Corporation *<F24> 181,560
4,830 EMC Corporation *<F24> 527,678
6,680 Sun Microsystems, Inc. *<F24> 517,282
----------
1,226,520
----------
CONSUMER PRODUCTS -- 4.5%
4,580 Lexmark International
Group, Inc. - Class A*<F24> 414,490
----------
DRUGS -- 5.5%
7,380 Pfizer Inc. 239,389
6,330 Schering-Plough Corporation 267,047
----------
506,436
----------
ELECTRICAL EQUIPMENT -- 3.7%
2,220 General Electric Company 343,545
----------
ELECTRONICS -- 2.1%
2,410 Intel Corporation 198,373
----------
FINANCIAL SERVICES -- 7.6%
6,650 Concord EFS, Inc.*<F24> 171,238
4,110 Fannie Mae 256,618
10,307 MBNA Corporation 280,866
----------
708,722
----------
INSURANCE -- 2.9%
5,760 AFLAC Incorporated 271,800
----------
INTERNET SERVICES -- 4.2%
5,170 America Online, Inc. 390,012
----------
MEDICAL INSTRUMENTS -- 2.5%
4,930 Guidant Corporation *<F24> 231,710
----------
MULTI-INDUSTRY -- 3.4%
8,030 Tyco International Ltd. 312,166
----------
RETAIL -- 14.1%
4,990 Bed Bath & Beyond Inc. *<F24> 173,402
9,930 Safeway Inc.*<F24> 353,136
5,860 Tandy Corporation 288,239
7,140 Wal-Mart Stores, Inc. 493,552
----------
1,308,329
----------
SOFTWARE -- 12.6%
3,015 Computer Associates
International, Inc. 210,862
3,560 Microsoft Corporation *<F24> 415,630
4,800 Oracle Corporation*<F24> 537,900
----------
1,164,392
----------
TELECOMMUNICATIONS -- 2.5%
3,120 Lucent Technologies Inc. 233,415
----------
UTILITIES - ELECTRIC -- 3.1%
3,860 AES Corporation *<F24> 288,535
----------
TOTAL COMMON STOCKS
(Cost $6,892,214) $8,896,894
----------
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 34.9%
U.S. TREASURIES -- 21.6%
$2,055,000 U.S. Treasury Bill,
5.40%, 6/29/2000
(Cost $2,000,131) 1,999,521
----------
VARIABLE RATE DEMAND NOTES #<F25> -- 13.3%
310,000 General Mills, Inc., 6.095% 310,000
305,423 Pitney Bowes, Inc., 6.095% 305,423
307,577 Sara Lee Corporation, 6.09% 307,577
310,000 Warner - Lambert Company,
6.044% 310,000
----------
TOTAL VARIABLE RATE
DEMAND NOTES
(Cost $1,233,000) 1,233,000
----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $3,233,131) 3,232,521
----------
TOTAL INVESTMENTS
(COST $10,125,345) -- 130.8% 12,129,415
----------
LIABILITIES, LESS OTHER
ASSETS -- (30.8%) (2,857,596)
----------
TOTAL NET ASSETS -- 100.0% $9,271,819
----------
----------
*<F24> Non-income producing security.
#<F25> Variable rate demand notes are considered short-term obligations and
are payable on demand. Interest rates change periodically on
specified dates. The rate listed is as of December 31, 1999.
See notes to financial statements
THE SIMMS FUNDS
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
December 31, 1999 (Unaudited)
SHARES VALUE
------ -----
COMMON STOCKS -- 98.4%
DENMARK -- 1.7%
TELECOMMUNICATIONS -- 1.7%
6,290 Tele Danmark A/S - ADR $ 237,448
-----------
Total Denmark 237,448
-----------
FINLAND -- 9.1%
TELECOMMUNICATIONS -- 9.1%
3,620 Nokia Oyj - ADR, Class A 687,800
8,560 Sonera Oyj - ADR*<F26> 592,780
-----------
Total Finland 1,280,580
-----------
FRANCE -- 3.4%
INSURANCE -- 1.7%
3,430 Axa - ADR 243,530
SOFTWARE -- 1.7%
3,780 Dassault Systemes S.A. - ADR 238,140
-----------
Total France 481,670
-----------
GERMANY -- 1.6%
MEDICAL PRODUCTS -- 1.6%
7,700 Frensenius Medical
Care AG - ADR 218,488
-----------
Total Germany 218,488
-----------
GREECE -- 1.6%
TELECOMMUNICATIONS -- 1.6%
19,170 Hellenic Telecommunications
Organization SA (OTE) - ADR 228,842
-----------
Total Greece 228,842
-----------
HONG KONG -- 4.2%
TELECOMMUNICATIONS -- 4.2%
4,200 Asia Satellite Telecommunications
Holdings Ltd. - ADR 147,000
3,450 China Telecom Limited 443,541
-----------
Total Hong Kong 590,541
-----------
HUNGARY -- 2.8%
TELECOMMUNICATIONS -- 2.8%
11,100 Magyar Tavkozlesi Rt. - ADR 399,600
-----------
Total Hungary 399,600
-----------
IRELAND -- 4.3%
DRUGS -- 3.0%
14,380 Elan Corporation PLC - ADR *<F26> 424,210
-----------
FINANCIAL SERVICES -- 1.3%
8,170 Allied Irish Banks PLC - ADR 172,591
-----------
Total Ireland 596,801
-----------
ISRAEL -- 2.1%
DRUGS -- 2.1%
4,200 Teva Pharmaceutical
Industries Ltd. - ADR 301,087
-----------
Total Israel 301,087
-----------
ITALY -- 1.6%
OPTICAL SUPPLIES -- 1.6%
12,680 Luxottica Group SpA - ADR 222,692
-----------
Total Italy 222,692
-----------
JAPAN -- 28.2%
COMPUTERS -- 5.3%
3,260 Fujitsu Limited - ADR 742,103
-----------
DRUGS -- 1.2%
8,690 Eisai Company, Ltd - ADR 166,830
-----------
ELECTRICAL EQUIPMENT -- 3.1%
2,675 Hitachi Ltd. - ADR 433,016
-----------
ELECTRONICS -- 7.5%
13,090 Cannon, Inc. - ADR 530,963
2,000 Kyocera Corporation - ADR 524,000
-----------
1,054,963
-----------
FINANCIAL SERVICES -- 2.3%
2,800 Orix Corporation - ADR 317,625
-----------
SOFTWARE -- 4.6%
26,950 Trend Micro Incorporated - ADR* 653,537
-----------
TELECOMMUNICATIONS -- 4.2%
6,820 Nippon Telegraph & Telephone
Corporation - ADR 587,373
-----------
Total Japan 3,955,447
-----------
MEXICO -- 1.9%
TELECOMMUNICATIONS -- 1.9%
2,360 Telefonos de Mexico S.A. - ADR 265,500
-----------
Total Mexico 265,500
-----------
NETHERLANDS -- 12.0%
ELECTRONICS -- 7.6%
4,041 Koninklijke (Royal) Philips
Electronics N.V. - NYS 545,562
3,400 STMicroelectronics N.V. - NYS 514,887
-----------
1,060,449
-----------
FOOD, BEVERAGES & TOBACCO -- 2.5%
11,750 Koninklijke Ahold N.V. - ADR 351,766
-----------
TEXTILES & APPAREL -- 1.9%
2,330 Gucci Group N.V. - NYS 266,785
-----------
Total Netherlands 1,679,000
-----------
SOUTH KOREA -- 1.6%
TELECOMMUNICATIONS -- 1.6%
2,960 Korea Telecom
Corporation - ADR*<F26> 221,260
-----------
Total South Korea 221,260
-----------
SPAIN -- 2.4%
TELECOMMUNICATIONS -- 2.4%
4,283 Telefonica S.A. - ADR 337,531
-----------
Total Spain 337,531
-----------
SWEDEN -- 4.8%
TELECOMMUNICATIONS EQUIPMENT -- 4.8%
10,140 Telefonaktiebolaget LM Ericsson 666,071
-----------
Total Sweden 666,071
-----------
SWITZERLAND -- 4.7%
BUSINESS SERVICES -- 2.9%
4,270 Adecco S.A. - ADR 409,920
-----------
DRUGS -- 1.8%
2,100 Roche Holding AG - ADR 247,949
-----------
Total Switzerland 657,869
-----------
UNITED KINGDOM -- 10.4%
BUSINESS SERVICES -- 2.9%
4,910 WPP Group PLC - ADR 408,144
-----------
COMMUNICATIONS & MEDIA -- 3.0%
13,150 Pearson PLC - ADR 425,575
-----------
RETAIL -- 1.4%
2,680 Dixons Group PLC - ADR 192,947
-----------
TELECOMMUNICATIONS -- 3.1%
8,750 Vodafone AirTouch PLC - ADR 433,125
-----------
Total United Kingdom 1,459,791
-----------
TOTAL COMMON STOCKS
(Cost $8,787,661) 13,800,218
-----------
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 1.7%
VARIABLE RATE DEMAND NOTES #<F27> -- 1.7%
$193,111 General Mills, Inc., 6.095% 193,111
48,568 Pitney Bowes, Inc., 6.095% 48,568
-----------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $241,679) 241,679
-----------
TOTAL INVESTMENTS
(COST $9,029,340) --
100.1% 14,041,897
-----------
LIABILITIES, LESS OTHER
ASSETS -- (0.1%) (17,791)
-----------
TOTAL NET ASSETS --
100.0% $14,024,106
-----------
-----------
*<F26> Non-income producing security.
#<F27> Variable rate demand notes are considered short-term obligations
and are payable on demand. Interest rates change periodically on
specified dates. The rate listed is as of December 31, 1999.
ADR - American Depository Receipts
NYS - New York Shares
See notes to financial statements
THE SIMMS FUNDS
GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS
December 31, 1999 (Unaudited)
SHARES VALUE
------ -----
COMMON STOCKS -- 95.1%
DENMARK -- 0.9%
TELECOMMUNICATIONS -- 0.9%
1,060 Tele Danmark A/S - ADR $ 40,015
----------
Total Denmark 40,015
----------
FINLAND -- 5.0%
TELECOMMUNICATIONS -- 5.0%
570 Nokia Oyj - ADR, Class A 108,300
1,590 Sonera Oyj - ADR*<F28> 110,107
----------
Total Finland 218,407
----------
FRANCE -- 1.7%
INSURANCE -- 0.8%
500 Axa - ADR 35,500
SOFTWARE -- 0.9%
650 Dassault Systemes S.A. - ADR 40,950
----------
Total France 76,450
----------
GERMANY -- 0.9%
MEDICAL PRODUCTS -- 0.9%
1,360 Frensenius Medical
Care AG - ADR 38,590
----------
Total Germany 38,590
----------
GREECE -- 0.9%
TELECOMMUNICATIONS -- 0.9%
3,420 Hellenic Telecommunications
Organization SA (OTE) - ADR 40,826
----------
Total Greece 40,826
----------
HONG KONG -- 2.5%
TELECOMMUNICATIONS -- 2.5%
690 Asia Satellite Telecommunications
Holdings Ltd. - ADR 24,150
650 China Telecom Limited 83,566
----------
Total Hong Kong 107,716
----------
HUNGARY -- 1.6%
TELECOMMUNICATIONS -- 1.6%
1,960 Magyar Tavkozlesi Rt. - ADR 70,560
----------
Total Hungary 70,560
----------
IRELAND -- 2.4%
DRUGS -- 1.8%
2,630 Elan Corporation PLC - ADR *<F28> 77,585
----------
FINANCIAL SERVICES -- 0.6%
1,370 Allied Irish Banks PLC - ADR 28,941
----------
Total Ireland 106,526
----------
ISRAEL -- 1.2%
DRUGS -- 1.2%
720 Teva Pharmaceutical Industries
Ltd. - ADR 51,615
----------
Total Israel 51,615
----------
ITALY -- 0.9%
OPTICAL SUPPLIES -- 0.9%
2,180 Luxottica Group SpA - ADR 38,286
----------
Total Italy 38,286
----------
JAPAN -- 16.6%
COMPUTERS -- 2.6%
510 Fujitsu Limited - ADR 116,096
----------
DRUGS -- 0.7%
1,540 Eisai Company, Ltd - ADR 29,565
----------
ELECTRICAL EQUIPMENT -- 1.9%
520 Hitachi Ltd. - ADR 84,175
----------
ELECTRONICS -- 5.0%
2,110 Cannon, Inc. - ADR 85,587
510 Kyocera Corporation - ADR 133,620
----------
219,207
----------
FINANCIAL SERVICES -- 1.4%
560 Orix Corporation - ADR 63,525
----------
SOFTWARE -- 2.8%
4,990 Trend Micro Incorporated - ADR*<F28> 121,007
----------
TELECOMMUNICATIONS -- 2.2%
1,130 Nippon Telegraph & Telephone
Corporation - ADR 97,321
----------
Total Japan 730,896
----------
MEXICO -- 1.0%
TELECOMMUNICATIONS -- 1.0%
380 Telefonos de Mexico S.A. - ADR 42,750
----------
Total Mexico 42,750
----------
NETHERLANDS -- 5.6%
ELECTRONICS -- 3.2%
508 Koninklijke (Royal) Philips
Electronics N.V. - NYS 68,580
470 STMicroelectronics N.V. - NYS 71,176
----------
139,756
FOOD, BEVERAGES & TOBACCO -- 1.4%
2,100 Koninklijke Ahold N.V. - ADR 62,869
----------
TEXTILES & APPAREL -- 1.0%
380 Gucci Group N.V. - NYS 43,510
----------
Total Netherlands 246,135
----------
SOUTH KOREA -- 1.0%
TELECOMMUNICATIONS -- 1.0%
600 Korea Telecom Corporation - ADR*<F28> 44,850
----------
Total South Korea 44,850
----------
SPAIN -- 1.2%
TELECOMMUNICATIONS -- 1.2%
657 Telefonica S.A. - ADR 51,785
----------
Total Spain 51,785
----------
SWEDEN -- 2.5%
TELECOMMUNICATIONS EQUIPMENT -- 2.5%
1,660 Telefonaktiebolaget LM Ericsson 109,041
----------
Total Sweden 109,041
----------
SWITZERLAND -- 2.4%
BUSINESS SERVICES -- 1.6%
720 Adecco S.A. - ADR 69,120
----------
DRUGS -- 0.8%
320 Roche Holding AG - ADR 37,783
----------
Total Switzerland 106,903
----------
UNITED KINGDOM -- 5.9%
BUSINESS SERVICES -- 1.5%
810 WPP Group PLC - ADR 67,331
----------
COMMUNICATIONS & MEDIA -- 1.8%
2,450 Pearson PLC - ADR 79,290
----------
RETAIL -- 0.9%
560 Dixons Group PLC - ADR 40,317
----------
TELECOMMUNICATIONS -- 1.7%
1,460 Vodafone AirTouch PLC - ADR 72,270
----------
Total United Kingdom 259,208
----------
UNITED STATES -- 40.9%
AEROSPACE -- 1.3%
1,010 Honeywell International Inc. 58,264
----------
BUSINESS SERVICES -- 4.3%
1,000 Cisco Systems, Inc. *<F28> 107,125
790 Omnicom Group Inc. 79,000
----------
186,125
----------
COMPUTERS -- 5.7%
830 Dell Computer Corporation *<F28> 42,330
930 EMC Corporation *<F28> 101,603
1,370 Sun Microsystems, Inc. *<F28> 106,089
----------
250,022
----------
CONSUMER PRODUCTS -- 2.2%
1,060 Lexmark International
Group, Inc. - Class A*<F28> 95,930
----------
DRUGS -- 2.0%
1,270 Pfizer Inc. 41,196
1,130 Schering-Plough Corporation 47,672
----------
88,868
----------
ELECTRICAL EQUIPMENT -- 1.4%
390 General Electric Company 60,353
----------
ELECTRONICS -- 1.0%
520 Intel Corporation 42,803
----------
FINANCIAL SERVICES -- 3.7%
1,355 Concord EFS, Inc.*<F28> 34,891
790 Fannie Mae 49,326
2,860 MBNA Corporation 77,935
----------
162,152
----------
INSURANCE -- 1.3%
1,160 AFLAC Incorporated 54,738
----------
INTERNET SERVICES -- 1.6%
960 America Online, Inc. 72,420
----------
MEDICAL INSTRUMENTS -- 1.2%
1,140 Guidant Corporation *<F28> 53,580
----------
MULTI-INDUSTRY -- 1.7%
1,900 Tyco International Ltd. 73,862
----------
RETAIL -- 5.4%
790 Bed Bath & Beyond Inc. *<F28> 27,453
1,930 Safeway Inc.*<F28> 68,636
1,180 Tandy Corporation 58,041
1,220 Wal-Mart Stores, Inc. 84,332
----------
238,462
----------
SOFTWARE -- 6.0%
620 Computer Associates
International, Inc. 43,361
800 Microsoft Corporation *<F28> 93,400
1,120 Oracle Corporation* 125,510
----------
262,271
----------
TELECOMMUNICATIONS -- 1.1%
680 Lucent Technologies Inc. 50,872
----------
50,872
----------
UTILITIES - ELECTRIC -- 1.0%
580 AES Corporation *<F28> 43,355
----------
Total United States 1,794,077
----------
TOTAL COMMON STOCKS
(Cost $3,812,124) 4,174,636
----------
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 74.8%
U.S. TREASURIES -- 66.1%
$2,980,000 U.S. Treasury Bill,
5.40%, 6/29/2000
(Cost $2,900,434) 2,899,549
----------
VARIABLE RATE DEMAND NOTES #<F29> -- 8.7%
196,007 General Mills, Inc., 6.095% 196,007
184,174 Pitney Bowes, Inc., 6.095% 184,174
----------
TOTAL VARIABLE RATE
DEMAND NOTES
(Cost $380,181) 380,181
----------
TOTAL SHORT- TERM
INVESTMENTS
(Cost $3,280,615) 3,279,730
----------
TOTAL INVESTMENTS
(COST $7,092,739) -- 169.9% 7,454,366
----------
LIABILITIES, LESS OTHER
ASSETS -- (69.9%) (3,065,733)
----------
TOTAL NET ASSETS -- 100.0% $4,388,633
----------
----------
*<F28> Non-income producing security.
#<F29> Variable rate demand notes are considered short-term obligations
and are payable on demand. Interest rates change periodically on
specified dates. The rate listed is as of December 31, 1999.
ADR - American Depository Receipts
NYS - New York Shares
See notes to financial statements
THE SIMMS FUNDS
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1999 (Unaudited)
NOTE 1 -- DESCRIPTION OF FUNDS
The Simms Funds (the "Trust") was organized as a Delaware business trust on July
1, 1998 and is registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as an open-end management investment company issuing its
shares in series, each series representing a distinct portfolio with its own
investment objectives and policies. The series presently authorized are the
U.S. Equity Fund, the International Equity Fund and the Global Equity Fund
(collectively referred to as the "Funds"). Pursuant to the 1940 Act, the Funds
are a "diversified" series of the Trust.
The U.S. Equity Fund commenced operations with the sale of Class Y shares on
December 11, 1998. The investment objective of the Fund is capital appreciation
through investments in the common stock of U.S. companies with large market
capitalizations, including multinational companies. The Fund may also invest in
convertible securities and preferred stock of U.S. companies.
The International Equity Fund commenced operations with the sale of Class Y
shares on December 11, 1998. The investment objective of the Fund is capital
appreciation through investments in the securities of foreign companies with
large market capitalizations, including multinational companies. The Fund
invests primarily in ADRs and may also invest directly in non-U.S. dollar-
denominated equity securities of foreign companies.
The Global Equity Fund commenced operations with the sale of Class Y shares on
December 18, 1998. The investment objective of the Fund is capital appreciation
through investments in the securities of U.S. and foreign companies with large
market capitalizations, including multinational companies. The Fund's foreign
equity investments primarily consist of ADRs. The Fund may also invest directly
in non-U.S. dollar-denominated equity securities of foreign companies.
Each Fund has issued two classes of shares: Class A and Class Y. Class A
shares were initially sold on April 26, 1999, February 1, 1999 and February 19,
1999 for the U.S. Equity Fund, International Equity Fund and Global Equity Fund,
respectively. The Class A shares are subject to an initial sales charge imposed
at the time of purchase, in accordance with the Fund's prospectus, and expenses
pursuant to the distribution and shareholder servicing plans described in Notes
7 and 8. The maximum sales charge is 4% of the offering price.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds.
a) Investment Valuation -- Investment securities traded on a national
securities exchange are valued at the last reported sales price at 4:00
p.m. Eastern time, unless there are no transactions on the valuation
date, in which case they are valued at the mean between the closing
asked and bid prices. Securities traded over-the-counter are valued at
the last reported sales price unless there is no reported sales price,
in which case the mean between the closing asked and bid prices is used.
Debt securities with maturities of sixty days or less are valued at
amortized cost, which approximates market value. Where market
quotations are not readily available, securities are valued using
methods which the Board of Trustees believe in good faith accurately
reflects their fair value.
b) Income Recognition -- Interest income is accrued as earned. Dividend
income is recorded on the ex-dividend date.
c) Securities Transactions -- Security transactions are accounted for on
the date the securities are purchased or sold. Realized gains and
losses on securities sold are determined using the high cost method.
d) Distributions to Shareholders -- The Funds record distributions to
shareholders on the ex-dividend date. Dividends from net investment
income are declared and paid annually. Distributions of net realized
capital gains, if any, will be declared and distributed at least
annually. The amounts of distributions from net investment income and
net realized capital gains are determined in accordance with 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, reclassifications are made in the
capital accounts in the period that the difference arises.
e) Federal Income Taxes -- The Funds' intend to comply with provisions of
the Internal Revenue Code applicable to regulated investment companies,
including the distribution of substantially all of each Fund's taxable
income. Accordingly, no provision for federal income taxes is
considered necessary in the financial statements.
f) 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 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.
g) Foreign Securities -- Investing in securities of foreign companies and
foreign governments involves special risks and considerations not
typically associated with investing in U.S. companies and the U.S.
government. These risks include revaluation of currencies and future
adverse political and economic developments. Moreover, securities of
many foreign companies and foreign governments and their markets may be
less liquid and their prices more volatile than those of securities of
comparable U.S. companies and the U.S. government.
NOTE 3 -- FORMATION AND REORGANIZATION
On December 11, 1998, all of the assets and liabilities of the Simms Partners
(U.S.) L.P. and the Simms Partners (International) L.P. (the "Partnerships")
were transferred to the U.S. Equity Fund and International Equity Fund,
respectively, in a reorganization (the "Reorganization"). The Reorganization
was considered a tax-free exchange and no gain or loss was recognized by the
Partnerships on the transfer of their assets to the respective Funds. The U.S.
Equity Fund and International Equity Fund retain the basis and holding periods
of the assets transferred from the Partnerships for tax purposes. The market
value of assets on the day of transfer of $3,333,389 for the U.S. Equity Fund
and $4,221,506 for the International Equity Fund became the cost basis for
financial reporting purposes for the respective Funds. This resulted in the tax
basis of securities held for the U.S. Equity Fund and the International Equity
Fund being $1,096,452 and $825,707 lower than their basis for financial
reporting purposes, respectively. On December 31, 1999, the tax basis of these
securities held by the U.S. Equity Fund and the International Equity Fund was
$634,805 and $321,810 lower than their basis for financial reporting purposes,
respectively.
NOTE 4 -- SHARES OF BENEFICIAL INTEREST
At December 31, 1999, each Fund had an authorized unlimited number of shares of
beneficial interest with no par value.
The following table summarizes the capital share transactions of each class of
shares for each Fund:
<TABLE>
CLASS A
U.S. INTERNATIONAL GLOBAL
EQUITY FUND EQUITY FUND EQUITY FUND
----------------- ----------------- -----------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
----------------- ----------------- -----------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Sales 8,700 $107,622 15,792 $177,922 -- --
Reinvested Distributions 622 8,168 664 9,505 -- --
Redemptions -- -- (4,955) (66,545) -- --
----- -------- ------ -------- ------ --------
Net Increase 9,322 $115,790 11,501 $120,882 -- --
----- -------- ------ -------- ------ --------
----- -------- ------ -------- ------ --------
SHARES OUTSTANDING:
Beginning of period 79 14,751 12,764
----- ------ ------
End of period 9,401 26,252 12,764
----- ------ ------
----- ------ ------
CLASS Y
U.S. INTERNATIONAL GLOBAL
EQUITY FUND EQUITY FUND EQUITY FUND
----------------- ----------------- -----------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, 1999 DECEMBER 31, 1999 DECEMBER 31, 1999
----------------- ----------------- -----------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------ ------ ------
Sales 223,572 $3,060,043 323,668 $3,764,599 232,158 $3,451,047
Reinvested Distributions 22,979 304,005 19,087 275,230 65 903
Redemptions (2) (25) (3) (37) (21,877) (282,654)
------- ---------- -------- ---------- ------- ----------
Net Increase 246,549 $3,364,023 342,752 $4,039,792 210,346 $3,169,296
------- ---------- -------- ---------- ------- ----------
------- ---------- -------- ---------- ------- ----------
SHARES OUTSTANDING:
Beginning of period 416,669 490,571 68,975
------- -------- -------
End of period 663,218 833,323 279,321
------- -------- -------
------- -------- -------
Total Net Increase $3,479,813 $4,160,674 $3,169,296
---------- ---------- ----------
---------- ---------- ----------
CLASS A
U.S. INTERNATIONAL GLOBAL
EQUITY FUND EQUITY FUND EQUITY FUND
----------------- ----------------- -----------------
APRIL 26, 1999- FEBRUARY 1, 1999- FEBRUARY 19, 1999-
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- -----------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------ ------ ------
Sales 79 $960 14,751 $155,219 12,764 $136,141
Redemptions -- -- -- -- -- --
-- ---- ------ -------- ------ --------
Net Increase 79 $960 14,751 $155,219 12,764 $136,141
-- ---- ------ -------- ------ --------
-- ---- ------ -------- ------ --------
CLASS Y
U.S. INTERNATIONAL GLOBAL
EQUITY FUND EQUITY FUND EQUITY FUND
----------------- ----------------- -----------------
DECEMBER 11, 1998- DECEMBER 11, 1998- DECEMBER 18, 1998-
JUNE 30, 1999 JUNE 30, 1999 JUNE 30, 1999
----------------- ----------------- -----------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------ ------ ------
Sales 452,329 $4,524,084 567,689 $5,756,594 69,021 $724,438
Redemptions (40,660) (437,740) (82,118) (858,616) (47) (506)
-------- ---------- ------- ---------- ------ --------
Net Increase 411,669 $4,086,344 485,571 $4,897,978 68,974 $723,932
-------- ---------- ------- ---------- ------ --------
-------- ---------- ------- ---------- ------ --------
SHARES OUTSTANDING:
Beginning of period 5,000 5,000 1
-------- ------- ------
End of period 416,669 490,571 68,975
-------- ------- ------
-------- ------- ------
Total Net Increase $4,087,304 $5,053,197 $860,073
---------- ---------- --------
---------- ---------- --------
</TABLE>
NOTE 5 -- INVESTMENT TRANSACTIONS
During the six months ended December 31, 1999 for the U.S. Equity Fund,
International Equity Fund and the Global Equity Fund, purchases and sales of
investment securities (excluding short-term investments) were as follows:
U.S. INTERNATIONAL GLOBAL
EQUITY FUND EQUITY FUND EQUITY FUND
----------- ------------- -----------
Purchases $3,675,908 $8,001,669 $3,500,450
Sales $ 704,119 $4,334,759 $ 388,121
The following information for the Funds is as of December 31, 1999:
<TABLE>
COST FOR FEDERAL NET TAX TAX BASIS TAX BASIS
INCOME TAX UNREALIZED GROSS UNREALIZED GROSS UNREALIZED
PURPOSES APPRECIATION APPRECIATION DEPRECIATION
---------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
U.S. Equity Fund $9,490,540 $2,638,875 $2,778,994 $140,119
International Equity Fund $8,723,944 $5,317,953 $5,539,561 $221,608
Global Equity Fund $7,093,924 $ 360,442 $ 420,281 $ 59,839
</TABLE>
NOTE 6 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Trust has an Investment Advisory Agreement (the "Agreement") with the Simms
Capital Management, Inc. (the "Adviser"), with whom certain officers and
Trustees of the Trust are affiliated, to furnish investment advisory services to
the Funds. Under the terms of the Agreement, the Trust, on behalf of the Funds,
compensates the Adviser for its management services based on an annual rate of
0.75% of the U.S. Equity Fund and 1.00% of the International Equity Fund and
Global Equity Fund's average daily net assets.
The Adviser has agreed to voluntarily reimburse and/or absorb the Funds'
advisory, organization and other expenses, to the extent necessary to ensure
that each Fund's operating expenses do not exceed the following amounts:
CLASS A CLASS Y
------- -------
U.S. Equity Fund 2.06% 1.31%
International Equity Fund 2.38% 1.63%
Global Equity Fund 2.23% 1.48%
To the extent that the Adviser reimburses or absorbs fees and expenses, it may
seek payment of such amounts for two years after the year in which expenses were
reimbursed or absorbed. A Fund will make no such payment, however, if the total
annual Fund operating expenses exceed the expense limits in effect at the time
these payments or reimbursements are proposed.
Firstar Mutual Fund Services, LLC serves as transfer agent, administrator and
accounting services agent for the Funds. Firstar Bank, N.A. serves as
custodian for the Funds.
NOTE 7 -- DISTRIBUTION PLAN
The Trust, on behalf of the Funds, has adopted a distribution plan pursuant to
Rule 12b-1 under the 1940 Act (the "12b-1 Plan"), which provides that each
Fund's Class A shares may pay distribution fees of up to 0.50% of the average
daily net assets to T.O. Richardson Securities, Inc. (the "Distributor").
Payments under the 12b-1 Plan shall be used to reimburse the Distributor for
services provided and expenses incurred, including amounts paid to brokers or
dealers, in connection with the sale of each Fund's shares. The U.S. Equity
Fund, International Equity Fund and Global Equity Fund incurred $148, $789 and
$387 in fees pursuant to the 12b-1 Plan for the period ended December 31, 1999.
NOTE 8 -- SHAREHOLDER SERVICING PLAN
The Trust, on behalf of the Funds, has adopted a shareholder servicing plan.
Under the shareholder servicing plan, Class A shares may pay financial
institutions, including affiliates of the Adviser, a fee of 0.25% of its average
daily net assets for services relating to maintenance of investor accounts,
including liaisons with investors. The U.S. Equity Fund, International Equity
Fund and Global Equity Fund incurred $74, $395 and $193 in fees pursuant to the
shareholder servicing plan for the period ended December 31, 1999.
(SIMMS CAPITAL MANAGEMENT, INC. GLOBAL INVESTORS LOGO)
THE SIMMS FUNDS
55 Railroad Avenue
Greenwich, Connecticut 06830
1-877-GET-SIMS
(1-877-438-7467)
INVESTMENT ADVISER
Simms Capital Management
55 Railroad Avenue
Greenwich, Connecticut 06830
ADMINISTRATOR, TRANSFER AGENT AND DIVIDEND DISBURSEMENT AGENT
Firstar Mutual Fund Services, LLC
P.O. Box 701
615 East Michigan Street
Milwaukee, Wisconsin 53202
CUSTODIAN
Firstar Bank, N.A.
777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
LEGAL COUNSEL
Kramer Levin Naftalis & Frankel LLP
919 Third Avenue
New York, New York 10022
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
100 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
DISTRIBUTOR
T.O. Richardson Securities, Inc.
2 Bridgewater Road
Farmington, Connecticut 06032
This report has been prepared for shareholders and may be distributed to others
only if preceded or accompanied by a current prospectus.
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