ANNUAL REPORT
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Value Trend Funds
=========================================================================
June 30, 2000
<PAGE>
Value Trend Funds
Annual Report June 30, 2000
Dear Shareholders:
Value Trend Funds' fiscal year ended June 30, 2000. We are pleased to report
that both the Value Trend Large Cap and the Value Trend Links Fund performance
is in the top one (1.0%) percentile of their category as reported by
Morningstar. The specific returns for each of the funds is reported in the
portfolio manager's reports. We believe the exceptional returns are due to the
investment strategy of the portfolio managers, which includes both a value and
growth approach to selecting stocks. This approach is considered a blend of
investment styles and each fund is listed in the Large Cap Blend category by
Morningstar.
Market Conditions - During the past twelve months we have seen a wide swing in
the market. It powered up starting in October of last year and continued until
March 10th of this year when it went into a major correction - bear market. From
March 10th to the end of May, the Nasdaq was down 41%, the largest drop since
1972. As of June 30th the Nasdaq has recovered a substantial part of its losses,
but year to date it was still down 3.17% while the S & P 500 was down 0.98% as
of June 30th. This compares to a positive return of 23.49% for the Value Trend
Large Cap Fund and 7.95% for the Value Trend Links Fund for the first six months
of year 2000. It is anticipated the market will continue to trade in a somewhat
narrow band for the balance of the summer months and then move higher toward the
end of this year.
Links Fund Changes Name and Strategy - The original investment strategy of the
Links Fund was to invest primarily in companies that were associated with the
golfing industry. Although this strategy has been successful, it is the opinion
of the portfolio managers that a new strategy will be more beneficial to
shareholders over the long-term. The board of trustees of the Value Trend Funds
has passed a resolution to change the name of the fund to the Value Trend Focus
Fund. The investment strategy has been change to invest a minimum of 25% and up
to 100% of the assets in technology related companies. You should carefully
consider if this new strategy fits your investment needs.
Shareholder Services - Today we believe it is more important than ever to
provide our shareholders top quality services. We have two resources available
to you, namely, a telephone information system and a web site. The telephone
systems can be accessed by dialing (800) 590-0898 where you will be greeted with
an automatic answering system that provides you with the following choices:
Option #1 Request a Prospectus and Applications ONLY. An answering service.
Option #2 Current NAV of the Funds (current share price).
Option #3 If you have a question about your account, want to establish automatic
investing, or want to redeem shares. The transfer agent, Mutual Shareholder
Services.
Option #4 If you have a specific question about the Funds. Value Trend Capital
Management.
We look forward to serving your investment needs. In the event you have any
questions, do not hesitate to contact the Value Trend Funds at the above number
or visit our web site at www.valuetrend.com, where you will find the daily NAV
posted and information about portfolio holdings.
<Ross C. Provence>
Ross C. Provence
President, Value Trend Funds
August 18, 2000
<PAGE>
The Value Trend Large Cap Fund
Report from Ross C. Provence, Portfolio Manager
As manager of the Value Trend Large Cap Fund, I recommended to the Board of
Trustees of Value Trend Funds the investment strategy be modified to allow
concentration in technology stocks. The board of directors passed a resolution
which provided for investment in a minimum of 25% and up to 100% in technology
related companies in the fund, including concentration in industry groups within
the technology sector. This strategic change will give management more
opportunities to invest in the technology area. You should carefully consider if
this change in strategy fits your investment needs.
The Value Trend Large Cap Fund has performed exceptionally well during the past
twelve months, providing the shareholders a total return of 72.01% as compared
to 7.25% for the S&P 500 during the same period. The fund is ranked number 1 by
Morningstar in its category for the past twelve months and number 1 for year to
date through June 30. As portfolio manager, I have continued to focus in the
areas of technology, financials, services, retail and health care. In the
technology sector, emphasis has changed from semiconductors to the fiber optic
and electronic storage. Some of the additions include Corning, Brocade and
Sycamore Networks. It is my belief that the fiber optic area has great upside
potential over the next several years and that electronic storage has become an
important element of the Internet and business arenas.
Downside risk has been dampened in the portfolio by applying value investing
principals in selecting stock for the portfolio. This takes into consideration
the current ratio, debt to equity ratio, net profits and earnings and profit
growth rates of potential candidates for the portfolio. A group of well seasoned
market leaders, such as Cisco, Intel, General Electric, J.P. Morgan and Amgen
helped provided stability and protection on the downside.
One of the main reasons for the market sell-off in the Spring was the fact that
many investors were betting on momentum of stocks rather than fundamentals. When
the interest rates were raised for the fifth and sixth times by the Federal Open
Market Committee earlier this year, support for these stocks disappeared and
many declined fifty to sixty percent. The Value Trend Large Cap Fund has
continued to prosper by investing in fundamentally sound business.
<Ross C. Provence>
Ross C. Provence
Portfolio Manager
August 18, 2000
The Value Of a $10,000 Investment In The Value Trend Large Cap Fund From January
1, 1999 To June 30, 2000 As Compared To The Standard & Poor's 500 Index.
Chart
Total Return*
Through 6/30/00 From
6/30/00 NAV $18.87 Fund Inception 1/1/99
--------------------------------------------------------------------------------
Value Trend Large Cap Fund 88.70%
Standard & Poor's 500 Index** 20.52%
*Total return includes change in share prices and in each case includes
reinvestment of any dividends and capital gain distributions.
**The S&P 500 is a broad market-weighted average dominated by blue-chip stocks
and is an unmanaged group of stocks whose composition is different from the
Fund.
Past Performance Is No Guarantee Of Future Results
<PAGE>
The Value Trend Links Fund
Report from Jeffrey R. Provence, Portfolio Manager
As reported in the opening shareholder letter, the name of the Value Trend Links
Fund has been changed to the Value Trend Focus Fund. This has been done by
resolution of the board of trustees of the Value Trend Funds. The fund will
invest a minimum of 25% and up to 100% in the technology sector, including
concentration in industry groups within the technology sector. The board members
and portfolio managers have determined that technology is the most important
element of any growth portfolio and thus the emphasis will be in this sector.
Technology covers a wide variety of industry groups such as, computers,
software, networking, semiconductors, fiber optics, wireless, Internet component
manufactures, and electronic storage.
The Value Trend Links Fund has performed well primarily because it has held a
number of technology stocks which are associated or linked with the golfing
industry through tournament sponsorships. Some of these important holdings
include Cisco Systems, EMC Corporation, Nokia, Ericsson and Texas Instru-ments,
which will continue to be holdings in the portfolio for the present time.
Additional holdings which will continue to be held include Charles Schwab,
Citigroup and American Express.
Active management of the Value Trend Focus Fund will be similar to that employed
in the Value Trend Large Cap Fund. A combination of value and growth styles will
be merged in selecting stocks for the portfolio. The objective is to select a
group of companies that have solid fundamentals and that are in those industries
or sectors which have the strongest growth trend over the next several years. We
believe this change will provide the shareholders with additional value and
growth of their portfolio holdings.
You should consider whether the changes reported above are compatible with your
investment objectives. If not, then you should redeem your shares at the
earliest date. If you have any questions, do not hesitate to contact the
portfolio managers.
<Jeffrey R. Provence>
Jeffrey R. Provence
Portfolio Manager
August 18, 2000
The Value Of a $10,000 Investment In The Value Trend Links Fund From January 1,
1999 To June 30, 2000 As Compared To The Standard & Poor's 500 Index.
Chart
Total Return*
Through 6/30/00 From
6/30/00 NAV $15.89 Fund Inception 1/1/99
--------------------------------------------------------------------------------
Value Trend Links Fund 58.90%
Standard & Poor's 500 Index** 20.52%
*Total return includes change in share prices and in each case includes
reinvestment of any dividends and capital gain distributions.
**The S&P 500 is a broad market-weighted average dominated by blue-chip stocks
and is an unmanaged group of stocks whose composition is different from the
Fund.
Past Performance Is No Guarantee Of Future Results
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Board of Trustees
Value Trend Funds
We have audited the accompanying statement of assets and liabilities of the
Value Trend Funds (comprising, respectively, the Value Trend Large Cap Fund and
the Value Trend Links Fund), including the schedule of portfolio investments as
of June 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 Funds' 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 June 30, 2000 by correspondence with the custodian and brokers. 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
Value Trend Funds as of June 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
July 14, 2000
<PAGE>
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Value Trend Large Cap Fund
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Schedule of Investments
June 30, 2000
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Shares/Principal Amount Market Value % of Assets
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Biological Products,
Except Diagnostic Substances
835 Amgen Inc.* $ 58,659 5.09%
Commercial Banks, Nec
425 Citigroup 25,606 2.22%
Communications Equipment, Nec
500 Network Appliance* 40,250
800 Nokia+ 39,950
---------
80,200 6.96%
Computer Integrated Systems Design
500 Sun Microsystems* 45,469 3.95%
Computer Peripheral Equipment, Nec
1,150 Cisco Systems Inc.* 73,097
770 EMC Corporation* 59,242
---------
132,339 11.48%
Drilling Oil and Gas Wells
900 Global Marine* 25,368 2.20%
Electric Housewares And Fans
225 General Electric Co. 11,925 1.03%
Electronic Computers
520 Gateway Inc.* 29,510
100 Intl Business Machines Inc. 10,956
---------
40,466 3.51%
Instruments For Measuring And Testing Of Electricity
500 JDS Uniphase* 59,938 5.20%
National Commercial Banks
75 Morgan (J.P) & Co. Inc. 8,259 0.72%
Oil and Gas Exploraration
350 Schlumberger 26,118 2.27%
Pharmaceutical Preparations
200 Abbott Laboratories 8,913
100 Merck & Co. Inc. 7,663
550 Pfizer Inc. 26,400
350 Lilly Eli 34,956
---------
77,932 6.76%
<PAGE>
Prepackaged Software
370 Microsoft Corp.* 29,600
780 Oracle Corp.* 65,569
200 Brocade Communication Sys Inc.* 36,697
---------
131,866 11.44%
Pressed and Blown Glass and Glassware, Nec
250 Corning Inc. Glass Works 67,468 5.85%
Security Brokers, Dealers, And Flotation Companies
330 Lehman Brothers Holdings Inc. 31,206
750 Schwab (Charles) Corp. 25,219
500 TD Waterhouse* 8,656
---------
65,081 5.65%
Semiconductors And Related Devices
325 Broadcom* 71,155
200 Cree Inc. * 26,700
150 Intel Corp. 20,053
340 PMC Sierra* 60,414
240 SDL Inc.* 68,445
425 Vitesse Semiconductor Corp.* 31,264
---------
278,031 24.12%
--------- -------
Total Common Stocks (cost $762,876) 1,134,725 98.45%
--------- -------
Cash Equivalants
27,234 Firstar Money Market (cost $27,234) 27,234 2.36%
--------- -------
Total Investments (cost $790,110) 1,161,959 100.81%
Other Assets Less Liabilities (9,343) -0.81%
--------- -------
Net Assets $ 1,152,616 100.00%
========= =======
<PAGE>
================================================================================
Value Trend Links Fund
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Schedule of
Investments
June 30, 2000
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Shares/Principal Amount Market Value % of Assets
--------------------------------------------------------------------------------
Commercial Banks, Nec
315 Citigroup $ 18,979 1.67%
Communications Equipment, Nec
2,940 Ericsson L M Tel Co.+ 58,800
720 Motorola Inc. 20,925
940 Network Appliance* 75,670
1,380 Nokia + 68,914
---------
224,309 19.78%
Computer Integrated Systems Design
860 Sun Microsystems* 78,206 6.90%
Computer Peripheral Equipment, Nec
2,050 Cisco Systems Inc.* 130,303
1,870 EMC Corporation* 143,873
---------
274,176 24.17%
Hardware, Nec
100 Fortune Brands 2,306 0.20%
Lumber And Other Building Materials Dealers
775 Home Depot Inc. 38,702 3.41%
Men's And Boys' Clothing And Accessory Stores
1,200 Ashworth * 5,363 0.47%
Men's And Boys' Shirts, Except Work Shirts
1,650 Cutter & Buck* 13,097 1.15%
National Commercial Banks
150 Bankamerica Corp 6,450 0.57%
Personal Credit Institutions
330 American Express Co. 17,201 1.52%
Prepackaged Software
570 Microsoft Corp. * 45,600 4.02%
Rubber And Plastics Footwear
770 Nike Inc. Cl B 30,655 2.70%
<PAGE>
Security Brokers, Dealers,
And Flotation Companies
1,252 Schwab (Charles) Corp. 42,098
1,125 TD Waterhouse* 19,477
---------
61,575 5.43%
Semiconductors And Related Devices
350 Intel Corp. 46,791
680 Texas Instruments Inc. 46,707
487 Tran Switch * 37,629
---------
131,127 11.56%
Sporting And Athletic Goods, Nec
2,850 Callaway Golf 46,491 4.10%
Telephone Communications, Exce.
550 Sprint PCS* 32,725 2.89%
--------- -------
Total Common Stocks (cost $662,475) 1,026,962 90.54%
--------- -------
Cash Equivalents
Firstar Money Market (cost $31,930) 31,930 2.81%
--------- -------
Total Investments (cost $694,405) 1,058,892 93.35%
Other Assets Less Liabilities 76,419 6.65%
--------- -------
Net Assets $ 1,135,311 100.00%
========= =======
<PAGE>
================================================================================
The Value Trend Funds
================================================================================
Statement of Assets & Liabilities
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Value Trend Large Cap & Links Funds June 30, 2000
Value Trend Value Trend
Large Cap Links
Fund Fund
Assets:
Investment Securities at Market Value $ 1,161,959 $ 1,058,892
(Identified Costs - $694,405 and $790,110)
Cash 4,425 7,379
Receivables:
Investment Securities Sold 46,293 69,055
Dividends and Interest Receivable 256 272
Receivable for Shares Sold - 1,000
--------- ---------
Total Assets 1,212,933 1,136,598
Liabilities:
Investment Securities Purchased 59,143 -
Accrued Expenses 1,174 1,287
--------- ---------
Total Liabilities 60,317 1,287
--------- ---------
Net Assets 1,152,616 1,135,311
Net Assets Consist Of:
Paid In Capital 749,107 807,563
Accumulated Undistributed Realized
Gain (Loss) on Investments - Net 31,660 (36,739)
Unrealized Appreciation in Value
of Investments Based on Identified Cost - Net 371,849 364,487
--------- ---------
Net Assets 1,152,616 1,135,311
========= =========
Shares of capital stock 61,088 71,445
Net asset value per share $ 18.87 $ 15.89
--------- ---------
Ordering price per share $ 18.87 $ 15.89
--------- ---------
<PAGE>
================================================================================
The Value Trend Funds
================================================================================
Statement of Operations
--------------------------------------------------------------------------------
Value Trend Large Cap & Links Funds For the year ending
June 30, 2000
Value Trend Value Trend
Large Cap Links
Fund Fund
Investment Income:
Dividend income $ 1,891 $ 2,102
Interest income 1,553 1,258
-------- --------
Total Income 3,444 3,360
-------- --------
Expenses:
Investment advisory fees (Note 2) 9,050 11,247
-------- --------
Total Expenses 9,050 11,247
Net Investment Income (Loss) (5,606) (7,887)
Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments 47,125 (26,321)
Unrealized Gain (Loss) from
Appreciation (Depreciation) on Investments 337,049 323,621
-------- --------
Net Realized and Unrealized
Gain (Loss) on Investments 384,174 297,300
-------- --------
Net Increase (Decrease) in Net Assets from Operations $ 378,568 $ 289,413
======== ========
<PAGE>
--------------------------------------------------------------------------------
The Value Trend Funds
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
Value Trend Large Cap & Links Funds June 30, 2000
<TABLE>
<CAPTION>
Value Trend Large Cap Value Trend Links
07/01/99 01/01/99 07/01/99 01/01/99
to to to to
06/30/00 06/30/99 06/30/00 06/30/99
<S> <C> <C> <C> <C>
From Operations:
Net Investment Income ( Loss) $ (5,606) $ (259) $ (7,887) $ (368)
Net Realized Gain (Loss) on Investments 47,125 (9,859) (26,321) (10,418)
Net Unrealized Appreciation (Depreciation) 337,049 34,800 323,621 40,866
---------- ---------- ---------- ----------
Increase (Decrease) in Net Assets from Operations 378,568 24,682 289,413 30,080
---------- ---------- ---------- ----------
Distributions to shareholders:
Net Investment Income - - - -
Net Realized Gain (Loss)
from Security Transactions - - - -
---------- ---------- ---------- ----------
Change in net assets from distributions - - - -
---------- ---------- ---------- ----------
From Capital Share Transactions:
Proceeds from sale of shares 508,310 236,103 468,529 356,317
Dividend reinvestment - - - -
Cost of shares redeemed (45,047) - (57,131) (1,897)
---------- ---------- ---------- ----------
Increase in net assets from capital transactions 463,263 236,103 411,398 354,420
---------- ---------- ---------- ----------
Increase in net assets 841,831 260,785 700,811 384,500
Net Assets:
Beginning of period 310,785 50,000 434,500 50,000
---------- ---------- ---------- ----------
End of period (including accumulated
undistributed net investment
income of $0 and $0, respectively) $ 1,152,616 $ 310,785 $ 1,135,311 $ 434,500
========== ========== ========== ==========
Share Transactions:
Issued 35,684 23,335 35,946 34,864
Reinvested - - - -
Redeemed (2,931) - (4,191) (174)
---------- ---------- ---------- ----------
Net increase (decrease) in shares 32,753 23,335 31,755 34,690
Shares outstanding beginning of period 28,335 5,000 39,690 5,000
---------- ---------- ---------- ----------
Shares outstanding end of period 61,088 28,335 71,445 39,690
========== ========== ========== ==========
</TABLE>
<PAGE>
--------------------------------------------------------------------------------
The Value Trend Funds
--------------------------------------------------------------------------------
Financial Highlights
Value Trend Large Cap Fund
--------------------------------------------------------------------------------
Selected data for a share of capital stock
outstanding throughout the period indicated
07/01/99 01/01/99
to to
06/30/00 06/30/99
Net Asset Value -
Beginning of Period $ 10.97 10.00
Net Investment Income / (Loss) (0.12) (0.01)
Net Gains or Losses on Securities
(realized and unrealized) 8.02 0.98
--------- ---------
Total from Investment Operations 7.90 0.97
Distributions - -
Net Asset Value -
End of Period $ 18.87 10.97
--------- ---------
Total Return 72.01% 9.70%
Ratios/Supplemental Data:
Net Assets at end of period (thousands) 1,153 311
Portfolio turnover rate 75.02% 57.25%*
Ratio of expenses to average net assets 1.25% 1.33%*
Ratio of net income to average net assets (0.77%) -0.22%*
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
Value Trend Links Fund
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout
the period indicated
07/01/99 01/01/99
to to
06/30/00 06/30/99
Net Asset Value -
Beginning of Period $ 10.95 10.00
Net Investment Income / (Loss) (0.13) (0.01)
Net Gains or Losses on Securities
(realized and unrealized) 5.07 0.96
--------- ---------
Total from Investment Operations 4.94 0.95
Distributions - -
Net Asset Value -
End of Period $ 15.89 10.95
--------- ---------
Total Return 45.11% 9.50%
Ratios/Supplemental Data:
Net Assets at end of period (thousands) 1,135 435
Portfolio turnover rate 56.64% 76.49%*
Ratio of expenses to average net assets 1.35% 1.427%*
Ratio of net income to average net assets (0.94%) -0.252%*
* Annualized
<PAGE>
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Notes To Financial Statements Value Trend Funds
June 30, 2000
--------------------------------------------------------------------------------
1.)SIGNIFICANT ACCOUNTING POLICIES
Value Trend Funds (the "Trust") is registered under the Investment Company
Act of 1940 with two separately managed non-diversified, no-load portfolios
(each a "Fund" and collectively, the "Funds). The Trust is organized as a
Massachusetts business trust on September 14, 1998. The two separate Funds
are the Large Cap Fund and the Links Fund. Each Fund's investment objective
is long-term growth of capital. The Large Cap Fund seeks to achieve its
objective by investing substantially all of its assets in common stocks of
well-established, high quality U.S. Companies that have a market
capitalization of $5 billion or more. The Links Fund seeks to achieve its
objective by investing primarily in common stocks of companies which are
associated with the golfing industry. Significant accounting policies of
the Funds are presented below:
SECURITY VALUATION
Both Funds intend 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 (the trade dates). Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Interest income is recorded on an
accrual basis. Both Funds use the identified cost basis in computing gain
or loss on sale of investment securities. Discounts and premiums on
securities purchased are amortized over the life of the respective
securities.
INCOME TAXES
It is both Funds' 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 both Funds' policy to distribute annually, after the end
of the calendar 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.
OTHER
Generally accepted accounting principles require that permanent financial
reporting tax differences relating to shareholder distributions be
reclassified to paid in capital for the Links Fund and to accumulated net
realized gains for the Large Cap Fund.
<PAGE>
2.)INVESTMENT ADVISORY AGREEMENT
The Trust has entered into an investment advisory and administration
agreement with Value Trend Capital Management, LP. The Investment Advisor
receives from the Value Trend Links Fund as compensation for its services
to that Fund an annual fee of 1.35%. The Investment Advisor also receives
from the Value Trend Large Cap Fund as compensation for its services to
that Fund an annual fee of 1.25%. For the year ended June 30, 2000 the
Advisor earned $11,247 in management fees for the Value Trend Links Fund
and the Advisor earned $9,050 in management fees for the Value Trend Large
Cap Fund. The advisor pays all fund operating expenses with the exception
of taxes, interest, brokerage commissions, and extraordinary expenses.
3.)RELATED PARTY TRANSACTIONS
Certain owners of Value Trend Capital Management, LP are also owners and/or
directors of the Value Trend Funds. These individuals may receive benefits
from any management fees paid to the Advisor. Value Trend Capital
Management, LP serves as distributor and administrator of the Funds. No
compensation is received for these services. 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 Funds, under section 2
(a)(9) of the Investment Company Act of 1940. As of June 30, 2000, National
Investor Services owned of record in aggregate more than 56% of the Links
Fund. As of June 30, 2000, National Investor Services owned of record in
aggregate more than 71% of the Large Cap Fund.
4.)CAPITAL STOCK AND DISTRIBUTION
At June 30, 2000, an indefinite number of shares of capital stock without,
par value, were authorized, and paid-in capital amounted to $807,563 for
the Value Trend Links Fund $749,107 for the Value Trend Large Cap Fund.
5.)PURCHASES AND SALES OF SECURITIES
The table below displays information describing purchases and sales of
investment securities, excluding short-term investments made during the
year ended June 30, 2000.
Value Trend Links Fund Value Trend Large Cap Fund
Purchases $770,849 $970,658
Sales 459,942 525,175
6.)SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at June 30,
2000 was the same as identified cost.
At June 30, 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:
Value Trend Links Fund Value Trend Large Cap Fund
Appreciation $404,125 $381,372
(Depreciation) (39,638) (9,523)
Net Appreciation
(Depreciation) 364,487 371,849
7.) SUBSEQUENT EVENT
On August 11, 2000, the Board of Trustees of the Value Trend Funds passed
a resolution to change the name of the Value Trend Links Fund to the Value
Trend Focus Fund. The Board of Trustees also passed a resolution to modify
the investment strategy of both the Large Cap Fund and the Links Fund. The
resolution provides for investment in a minimum of 25% and up to 100% in
technology related companies in the Funds, including concentration in
industry groups within the technology sector.
<PAGE>
Board of Trustees
Thomas H. Addis III
George Cossolias, CPA
Bradley J. DeHaven
Jeffrey R. Provence
Ross C. Provence
Investment Adviser
Value Trend Capital Management, LP
411 West Madison Avenue
El Cajon, CA 92020
Dividend Paying Agent,
Shareholders' Servicing Agent,
Transfer Agent
Mutual Shareholder Services
1301 E. 9th St., Suite 1005
Cleveland, Ohio 44114
Custodian
Firstar Bank, NA
425 Walnut Street
P.O. Box 1118
Cincinnati, OH 45201
Independent Auditors
McCurdy & Associates CPA's, Inc.
27955 Clemens Rd
Westlake, Ohio 44145
<PAGE>
