--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
================================================================================
Prasad Growth Fund
================================================================================
September 30, 1999
--------------------------------------------------------------------------------
<PAGE>
November 29, 1999
Dear Shareholders:
Our fund has an excellent portfolio enriched by the best
stocks in the leading sectors. For example the fund owns
Cisco, Lucent, Microsoft, Intel, Sun Microsystems, EMC, CTS,
Broadcom, CMGI, America On Line, Qualcom, Schwab, Tiffany,
etc. Since the middle of October, with the market trend
being up, our fund has been performing better than the
general market. This is because the fund is invested in the
dominant stocks. Currently Nasdaq and technology stocks are
leading the market. Small capitalization growth stocks are
ahead of large capitalization stocks. Y2K does not seem to
be a significant issue but more individual investors will
come into the market after January 1, 2000 which should
help.
Seasonality plays a major role in the stock market. The
period from middle of October to middle of July is usually
quite positive, especially in a pre-election year. During
periods of deterioration in the market the fund will raise
more cash and decrease the investment in stocks. This will
protect the value of the fund.
In the long term the stock market offers the best potential
investment vehicle. This is especially accentuated by the
stimulus to the economy and industries produced by the baby
boom generation. According to experts this golden period
should last until around years 2008 to 2009. Low inflation,
low interest rates and economic recovery in other countries
are other important factors contributing to the growth of
the companies in the USA. Kindly look at our website
"www.prasadseriestrust.com" which has lot of information.
All of us wish you and your families a joyous holiday season
and a happy and healthy New Year!
Sincerely,
Raj Prasad
<PAGE>
Prasad Growth Fund
Schedule of Investments
September 30, 1999 (unaudited)
Shares/Principal Amount Market Value % of Assets
Auto & Truck (Foreign)
Brilliant 26,314 4.34%
Business Service (Misc)
Navigation 13,912
Lab Ready* 10
13,922 2.29%
Computer-Local Networks
Cisco Systems Inc. * 20,569
Performance 9,025
29,594 4.88%
Computer (Makers)
Dell Computer Corp.* 8,363 1.38%
Computer-(Memory Devices)
Emc Corporation* 28,575 4.71%
Computer-(Services)
Whitman 11,633 1.92%
Diversified Companies
Tyco Laboratories, Inc. 20,650 3.40%
Drug (Biomedical/Genetic)
Chiron 13,844 2.28%
Electronic (Components)
Solectron Corp.* 14,363 2.37%
Electronic (Laser Systems)
Laser 14,031 2.31%
Electronic (Semiconductor Mfg)
Flextronics Intl Ltd. 17,456
Qlogic* 13,962
31,418 5.18%
Home (Misc Wares)
Salton Maxim Houseware* 30,187 4.97%
Internet (Network)
Cmgi* 10,250 1.69%
Petroleum (Drilling)
Precision Drilling 11,594 1.91%
*Non-Income producing securities.
The accompanying notes are an integral part of the financial statements.
<PAGE>
Schedule of Investments
September 30, 1999 (unaudited)
Shares/Principal Amount Market Value % of Assets
Software (Business)
Citrix* 24,775
Commerence* 2,442
Electronics For Imaging* 10,281
Siebel Systems 13,325
50,823 8.38%
Software (Desktop)
Microsoft Corp. 36,225 5.97%
Semiconductors and Related Devices
Intel Corp. 14,863 2.45%
Telecom (Equipment)
Lucent Technologies 19,463 3.21%
Call Options
Lexmark Intl Nov 80 Calls* 5,750
Network Solutions Nov 90 Calls* 11,500
2.84%
Cash Equivalents
20Fifth Third Fountain Square 20,143 3.32%
Total Investments (cost $432,811) 403,362 66.47%
Other Assets Less Liabilities 203,473 33.53%
Net Assets - Equivalent to $9.16 per 606,835 100.00%
based on 66,228 shares of capital
stock outstanding
*Non-Income producing securities.
The accompanying notes are an integral part of the financial statements.
<PAGE>
Statement of Assets and Liabilities
September 30, 1999 (unaudited)
Assets: 403,362
Investment Securities at Market Value
(Identified Cost - $432,811)
Cash 60,697
Receivables:
Dividends and Interest 108
Receivable for investment securities sold 212,790
Other Assets -
Total Assets 676,957
Liabilities
Payables:
Investment Securities Purchased 65,670
Shareholder Distributions -
Accrued Expenses 4,452
Total Liabilities 70,122
Net Assets 606,835
Net Assets Consist of:
Capital Paid In 694,006
Undistributed Net Investment Income (2,594)
Accumulated Realized Gain (Loss) on Investments - Net (55,128)
Unrealized Appreciation in Value
of Investments Based on Identified Cost - Net (29,449)
Net Assets, for 66,228 Shares Outstanding 606,835
Net Asset Value and Redemption Price
Per Share ($606,835/66,228 shares) 9.16
Offering Price Per Share 9.16
The accompanying notes are an integral part of the financial statements.
<PAGE>
Statement of Operations (unaudited)
04/01/1999
to
09/30/1999
Investment Income:
Dividends 194
Interest 853
Total Investment Income 1,047
Expenses
Management Fees (Note 2) 3,641
Director fees 375
Custody 2,249
Transfer agent fees 2,700
Legal 1,321
Insurance 461
Audit 2,529
Other expenses 868
Organizational Costs -
Total Expenses 14,143
Reimbursed expenses (10,502)
Total Expenses after reimbursement 3,641
Net Investment Income (2,594)
Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments (53,063)
Distribution of Realized Capital Gains from other
Invements -
Unrealized Gain (Loss) from Appreciation (Depreciation)
on Investments (36,545)
Net Realized and Unrealized Gain (Loss) on Investments (89,608)
Net Increase (Decrease) in Net Assets from Operations (92,202)
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
<PAGE>
Statement of Changes in Net Assets (unaudited)
04/01/1999 11/23/98 *
to to
09/30/1999 03/31/1999
From Operations:
Net Investment Income (2,594) (581)
Net Realized Gain (Loss) on Investments (53,063) (2,065)
Net Unrealized Appreciation (Depreciation) (36,545) 7,096
Increase (Decrease) in Net Assets from Operations (92,202) 4,450
From Distributions to Shareholders
Net Investment Income 0 0
Net Realized Gain (Loss) from Security
Transactions 0 0
Net Increase (Decrease) from Distributions 0 0
From Capital Share Transactions:
Proceeds From Sale of 46,132 Shares 488,804 105,783
Net Asset Value of 0 Shares Issued on
Reinvestment of Dividends 0 0
Cost of 0 Shares Redeemed 0 0
488,804 105,783
Net Increase in Net Assets 396,602 110,233
Net Assets at Beginning of Period 210,233 100,000
Net Assets at End of Period 606,835 210,233
*Commencement of operations
The accompanying notes are an integral part of the financial statements.
<PAGE>
Financial Highlights (unaudited)
Selected data for a share of common stock outstanding throughout the period:
04/01/1999 11/23/98 *
to to
09/30/1999 03/31/1999
Net Asset Value -
Beginning of Period 10.46 10.00
Net Investment Income (0.04) (0.05)
Net Gains or Losses on Securities
(realized and unrealized) (1.26) 0.51
Total from Investment Operations (1.30) 0.46
Dividends
(from net investment income) 0.00 0.00
Distributions (from capital gains) 0.00 0.00
Return of Capital 0.00 0.00
Total Distributions 0.00 0.00
Net Asset Value -
End of Period 9.16 10.46
Total Return ** (24.92)% 13.37 %
Ratios/Supplemental Data
Net Assets - End of Period (Thousands) 607 210
Before expense reimbursement
Ratio of Expenses to Average Net Assets ** 5.83 % 32.16 %
Ratio of Net Income to Average Net Assets ** (5.39)% (31.74)%
After expense reimbursement
Ratio of Expenses to Average Net Assets ** 1.50 % 1.50 %
Ratio of Net Income to Average Net Assets ** (1.07)% (1.08)%
Portfolio Turnover Rate ** 687.95 % 272.04 %
* Commencement of operations
** Annualized
The accompanying notes are an integral part of the financial statements.
<PAGE>
Prasad Growth Fund
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
1.)SIGNIFICANT ACCOUNTING POLICIES
The Fund is an open-end management investment company, organized as a Trust
under the laws of the State of Delaware by a Declaration of Trust in July
1998. The Fund's investment objective is to obtain capital appreciation. In
seeking its objective, this Fund will invest at least 65% of its total
assets in equity securities. Significant accounting policies of the Fund
are presented below:
SECURITY VALUATION:
The Fund intends to invest in a wide variety of equity and debt securities.
The investments in securities are carried at market value. The market
quotation used for common stocks, including those listed on the NASDAQ
National Market System, is the last sale price on the date on which the
valuation is made or, in the absence of sales, at the closing bid price.
Over-the-counter securities will be valued on the basis of the bid price at
the close of each business day. Short-term investments are valued at
amortized cost, which approximates market. Securities for which market
quotations are not readily available will be valued at fair value as
determined in good faith pursuant to procedures established by the Board of
Directors.
SECURITY TRANSACTION TIMING
Security transactions are recorded on the dates transactions are entered
into. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded as earned. The Fund uses the
identified cost basis in computing gain or loss on sale of investment
securities.
INCOME TAXES:
It is the Fund's policy to distribute annually, prior to the end of the
calendar year, dividends sufficient to satisfy excise tax requirements of
the Internal Revenue Service. This Internal Revenue Service requirement may
cause an excess of distributions over the book year-end accumulated income.
In addition, it is the Fund's policy to distribute annually, after the end
of the fiscal year, any remaining net investment income and net realized
capital gains.
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.
2.)INVESTMENT ADVISORY AGREEMENT
The Fund has entered into an investment advisory and administration
agreement with Mutual Funds Leader, Inc. The Investment Advisor receives
from the Fund as compensation for its services an annual fee of 1.5% on the
Fund's net assets. The investment advisor pays all expenses of The Fund
except for brokerage, taxes, interest, and extraordinary expenses. The Fund
paid investment management fees of $3,641 during the six month period ended
September 30, 1999.
3.)RELATED PARTY TRANSACTIONS
Certain owners of Mutual Funds Leader, Inc. are also owners and/or
directors of the Prasad Growth Fund. These individuals may receive
benefits from any management fees paid to the Advisor.
4.)CAPITAL STOCK AND DISTRIBUTION
At September 30, 1999 an indefinite number of shares of capital stock were
authorized, and paid-in capital amounted to $694,006. Transactions in
common stock were as follows:
<PAGE>
Shares sold 46,132
Shares issued to shareholders in reinvestment of dividends 0
46,132
Shares redeemed 0
Net Increase 46,132
Shares Outstanding:
Beginning of Period 20,096
End of Period 66.228
5.)PURCHASES AND SALES OF SECURITIES
During the period six-month period ending September 30, 1999, purchases and
sales of investment securities other than U.S. Government obligations and
short-term investments aggregated $1,700,536 and $1,427,890 respectively.
Purchases and sales of U.S. Government obligations aggregated $0 and $0
respectively.
6.)FINANCIAL INSTRUMENTS DISCLOSURE
There are no reportable financial instruments that have any off-balance
sheet risk as of September 30, 1999.
7.)SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at September
30, 1999 was the same as identified cost. At September 30, 1999, the
composition of unrealized appreciation (the excess of value over tax cost)
and depreciation (the excess of tax cost over value) was as follows:
Appreciation (Depreciation) Net Appreciation (Depreciation)
7,730 (37,178) (29,449)
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Board of Trustees
Rajendra Prasad
Anita Alamshaw
Richard L.D. Saxton
Samir Thakkar
Investment Adviser
Mutual Funds Leader, Inc.
821 Hillside Drive
Long Beach, California 90815
Dividend Paying Agent,
Shareholders' Servicing Agent,
Transfer Agent
Mutual Shareholder Services
1301 E. 9th St., Suite 1005
Cleveland, Ohio 44114
Custodian
Fifth Third Bank
Mutual Fund Services
38 Fountain Square Plaza
MD 1090E5
Cincinnati, OH 45263
Counsel
Michael J. Meaney, Esq.
Benesch, Friedlander, Coplan & Aronoff LLP
2300 BP America Building
200 Public Square
Cleveland, Ohio 44114
Independent Auditors
McCurdy & Associates CPA's, Inc.
27955 Clemens Rd
Westlake, Ohio 44145
<PAGE>
