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SEMI-ANNUAL REPORT
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Prasad Growth Fund
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September 30, 2000
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Prasad Growth Fund
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Dear Shareholders,
Year 2000 has been a very difficult year. The major problem has been increase in
interest rates. The other problems have been increasing oil prices and weak
Euro. The presidential elections have caused a great deal of weakness in the
market recently. The volatility in the markets have been the highest in the past
two years. Most of the recent drop in stock prices is due to the downgrading of
stocks by analysts. As the semiconductor stocks were brought down in value, so
did the rest of technology issues.
On the positive side, I want to state that we are at or near a bottom. As soon
as a president is elected the markets would go up. As the economy is slowing the
interest rates will be cut gradually. The oil prices are leveling off and will
go down. The Euro will get stronger. In my opinion and of other important people
in the industry, analysts have overdone in bringing the stock prices down
recently. Many stocks are undervalued now. This is especially true for
technology stocks. The future for technology stocks is excellent even though
their growth in 2001 may be less than that of 2000. The prices of these stocks
should go up once the presidential election is out of the way and interest rates
start moving down. Biotechnology has great future as it is opening up gates for
new and exciting treatment modalities. At this time if we are patient, we will
be rewarded highly in six months from now. There is always more fear at market
bottoms. The market will not stay like this forever. The stocks we own in the
fund are some of the best, with high sales/earnings growth rates. Please check
each one of them out.
As you may or may not know, Prasad Series Trust has its own website. The website
address is www.prasadfunds.com. The website now has new features to it. You can
know check your account activity online. The account activity section of Prasad
Series Trust allows you to get the current value of your account as well as
historical transactions. Please note that if you use Netscape Navigator to check
your account on our website you might have trouble accessing the activity page.
Netscape Navigator's browser cannot handle the complex page script used on our
web site. If you do have problems, you can easily download the newest version of
Microsoft's Internet Explorer from our site. In addition, you can display the
portfolio holdings that are updated monthly.
Prasad Series Trust also has a ticker symbol. The symbol for the fund is PRGRX.
Using this symbol you can go to any Internet site (i.e., yahoofinance.com) that
gives financial data and you can get the latest price.
We at Prasad Series Trust thank you for your confidence in investing in our
fund. We wish you a wonderful holiday season and a great New Year!
Sincerely,
/s/
-------------------------
Raj Prasad
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Prasad Growth Fund
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Schedule of Investments
September 30, 2000 Unaudited
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Shares/Principal Amount Market Value % of Assets
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COMMON STOCKS
Auto & Truck
300 Dycom Industries 12,488 0.99%
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Bank West/Southwest
350 GBC Bancorp 11,922
1,000 Silicon Valley 58,234
70,156 5.55%
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Building
500 Lamson Sessions 5,937 0.47%
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Business Service Security and Safety
2,000 Tidel Technology 13,875 1.10%
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Business Service Staffing
1 Labor Ready 4 0.00%
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Chemicals
600 Cabot Micro Electronics 28,800 2.28%
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Computers
200 Digital Lightwaves 14,525 1.15%
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Drug-Biomedical/Genetic
1,000 Stemcells 6,500 0.51%
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Electrical Equipment
300 Power One 18,155 1.44%
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Electronic Components
500 C-Mac Industries 28,750
2,000 Dennse Pac Mic 11,250
600 RF Microdevices 18,825
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58,825 4.66%
Electronic Miscellaneous Products
500 Applied Film 13,563 1.07%
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Electronic Parts Distributors
1,000 Jaco Electronics Inc. 15,000 1.19%
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Electronic Semiconductor Equipment
200 JDS Uniphase 18,938
300 KLA Instruments Corp. 12,356
1,000 Trikon Tech 14,125
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45,419 3.60%
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Electronic Semiconductor Manufacturing
500 Advanced Micro Devices Inc. 11,813
2,000 Atmel Corp. 30,375
200 International Recti-fier 10,113
1,000 Micron Technology Inc. 46,000
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98,301 7.78%
Energy
500 Calpine 52,188
2,000 NRG-Energy 73,000
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125,188 9.91%
Healthcare Products
200 Biosite Diagnostics 7,975 0.63%
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Instruments-Measuring
500 BEI Technology 20,875 1.65%
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Instruments-Scientific
1,000 DCH Technology Inc. 5,812 0.46%
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Internet Service Provider
200 Lycos 13,754
1,000 Satyam Infoway 13,563
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27,317 2.16%
Investment Management
2,000 Labranch 66,750 5.28%
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Petroleum US Exploration/Production
3,000 Danbury Resources 21,000
1,000 Unit Corporation 14,750
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35,750 2.83%
Retail Consumer Electronics
4,000 Emerson Rd. 8,250 0.65%
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Software Business
500 Broadvision 12,844
300 Oracle Corp. 23,625
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36,469 2.89%
Telecomm Equipment
1,000 ADC Telecom 2,063
500 ADC Telecommunications Inc. 13,445
200 Sycamore Networks 20,800
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36,308 2.88%
Total Stocks 772,242 61.13%
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Call Options
Banks West/Southwest
3,600 Silicon Valley February 60 call 29,700 2.35%
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Energy
1,000 Calpine January 100 Call 16,375 1.30%
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Petroleum
2,000 Dynegy March 60 Call 15,000 1.19%
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Total Call Options 61,075 4.83%
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Money Market Funds
49,274 Fountain Square 49,274 3.90%
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Total Money Market Funds 49,274 3.90%
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Total Investments (Cost - 1,004,475)" 882,591 69.87%
Other Assets Less Liabilities 380,626 30.13%
Net Assets 1,263,217 100.00%
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Prasad Growth Fund
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Statement of Assets and Liabilities
September 30, 2000 Unaudited"
Assets:
Investment Securities at Market Value $ 882,591
(Identified Cost - 1,004,475)
Cash 1,548
Receivables:
Dividends and Interest 290
Securities Sold 542,650
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Total Assets 1,427,079
Liabilities
Accrued Expenses 1,536
Securities Purchased 162,326
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Total Liabilities 163,862
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Net Assets $ 1,263,217
Net Assets Consist of:
Capital Paid In 1,792,451
Accumulated Net investment Income 3,665
Accumulated Realized Gain (Loss) on Investments - Net (411,019)
Unrealized Depreciation in Value
of Investments Based on Identified Cost - Net (121,884)
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Net Assets, for Shares Outstanding" $ 1,263,213
Net Asset Value and Redemption Price ============
Per Share ($1,263,217/95,633 shares) 6.73
Offering Price Per Share 6.73
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Prasad Growth Fund
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Statement of Operations
For the year ended September 30, 2000 Unaudited "
Investment Income:
Dividends 456
Interest 13,674
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Total Investment Income 14,130
Expenses
Management Fees (Note 2) 10,465
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Total Expenses 10,465
Net Investment Income 3,665
Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments (394,479)
Realized Gain (loss) on Options -
Unrealized Appreciation (Depreciation) on Investments (299,832)
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Net Realized and Unrealized Gain (Loss) on Investments (694,311)
Net Increase (Decrease) in Net Assets from Operations (690,646)
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Prasad Growth Fund
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Statement of Changes in Net Assets Unaudited
4/01/00 4/01/99
to to
9/30/00 3/31/00
From Operations:
Net Investment Income 3,665 (11,053)
Net Realized Gain (Loss) on Investments (394,479) 271,184
Net Realized Gain (loss) on Options 0 241,099
Net Unrealized Appreciation (Depreciation) (299,832) 170,852
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Increase (Decrease) in Net Assets from Operations (690,646) 672,082
From Distributions to Shareholders
Net Investment Income (515,705) 0
Net Realized Gain (Loss) from Security Transactions 0 0
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Net Increase (Decrease) from Distributions (515,705) 0
From Capital Share Transactions:
Proceeds From Sale of Shares 302,584 1,003,821
Shares Issued on Reinvestment of Dividends 515,705 0
Cost of Shares Redeemed (31,880) (202,981)
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Net Increase from Shareholder Activity 786,409 800,840
Net Increase in Net Assets (419,942) 1,472,922
Net Assets at Beginning of Period 1,683,155 210,233
Net Assets at End of Period 1,263,213 1,683,155
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Share Transactions:
Issued 25,771 88,534
Reinvested 69,690 -
Redeemed (3,356) (12,997)
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Net increase (decrease) in shares 92,105 75,537
Shares outstanding beginning of period 95,633 20,096
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Shares outstanding end of period 187,738 95,633
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*Commencement of operations
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Prasad Growth Fund
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Financial Highlights Unaudited
Selected data for a share outstanding throughout the period:
4/01/00 4/01/99 11/23/1998**
to to to
9/30/00 3/31/00 3/31/99
Net Asset Value -
Beginning of Period 17.60 10.46 10.00
Net Investment Income 0.04 (0.12) (0.05)
Net Gains or Losses on Securities
(realized and unrealized) (6.48) 7.26 0.51
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Total from Investment Operations (6.44) 7.14 0.46
Dividends
(from net investment income) (4.43) 0.00 0.00
Distributions (from capital gains) 0.00 0.00 0.00
Return of Capital 0.00 0.00 0.00
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Total Distributions (4.43) 0.00 0.00
Net Asset Value -
End of Period 6.73 17.60 10.46
Total Return -38.66% 68.26% 13.37%
Ratios/Supplemental Data
Net Assets - End of Period (Thousands) 1,263 1,683 210
Ratio of Expenses to Average Net Assets 1.50% 1.50% 1.50%*
Ratio of Net Income to Average Net Assets 0.53% -1.21% -1.08%*
Ratio of Expenses to Average Net
Assets Before Reimbursement 0.00% 0.00% 32.16%
Ration of Income to Average Net
Assets Before Reimbursement 0.00% 0.00% -31.74%
Portfolio Turnover Rate 1608.79% 455.07% 272.04%*
* Annualized
** commencement of operations.
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PRASAD GROWTH FUND
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NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
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 Advisor pays all expenses of the fund except for
brokerage fees, taxes interest and extraordinary expenses. From time to
time, Mutual Funds Leader, Inc. may waive some or all of the fees and may
reimburse expenses of the Fund. The Fund paid investment management fees of
$8,928 during the six months ending September 30, 2000.
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.
As of September 30, 2000, Krishna & Parvataneni M.D. Profit Sharing Plan
owned 21.61% of the Fund. This shareholder is considered a control person
as defined under Section 2(1)(9) of the 1940 Act, by virtue of their
ownership of more than 25% of the voting securities of the Fund.
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4.)CAPITAL STOCK AND DISTRIBUTION
At September 30, 2000 an indefinite number of shares of capital stock were
authorized, and paid-in capital amounted to $1,792,451. Transactions in
common stock were as follows:
5.)PURCHASES AND SALES OF SECURITIES
During the fiscal year ending September 30, 2000, purchases and sales of
investment securities other than U.S. Government obligations and short-term
investments aggregated $9,263,771 and $9,308,469 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, 2000.
7.)SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at March
31,2000 was the same as identified cost. At March 31, 2000, 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)
31,334 (153,216) (121,882)
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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
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