<PAGE>
GAMNA FOCUS FUND
DISTRIBUTED BY:
PROVIDENT DISTRIBUTORS, INC.
ANNUAL REPORT
TO SHAREHOLDERS
JUNE 30, 2000
<PAGE>
Dear Shareholder,
We are proud to report very positive results for our first fiscal year
ending June 30, 2000 (see page 2 for actual performance results). The GAMNA
Focus Fund more than doubled the return of the Standard & Poor's 500 Index, a
broad measure of the market's overall performance. The GAMNA Focus Fund
capitalizes upon the same investment process that has provided our separate
account investors with outstanding results over the past decade, so we are
pleased to see the same type of success with a mutual fund product.
We continue to be enthusiastic about both the marketplace and the
underlying fundamentals of our stock holdings. The performance of the broad
market and the GAMNA Focus Fund was driven by the technology and
telecommunications sectors throughout 1999 and our energy and financial holdings
over the past few months. Our ability to adjust to shifting economic trends has
again allowed us to focus our bottom up analysis on the better performing
sectors of the market.
Recent economic releases show signs of a slowing U.S. economy. It appears
that the Federal Reserve is beginning to see evidence of success resulting from
its interest rate hikes and the odds of a "soft landing" are increasing.
Therefore, we continue to expect stable economic growth, inflation, and interest
rates over the remainder of 2000. Although we expect that the growth of earnings
will slow as the economy slows, we believe that stable prices, technological
advances, and increasing worker productivity will allow earnings to continue to
grow at approximately 8-10%. This is a very favorable environment for the U.S.
stock market and one that we believe we are well positioned to take advantage
of.
We would like to thank you for helping our inaugural year be so successful
and for your continued confidence in GAMNA.
Sincerely,
/s/ Mark P. Bronzo
Mark P. Bronzo, Chairman, President and CEO August 25, 2000
<PAGE>
<TABLE>
<CAPTION>
SECTOR DIVERSIFICATION AS OF JUNE 30, 2000
------------------------------------------
<S> <C>
Finance 7.58%
Consumer Products 3.44%
Retail 5.10%
Healthcare / Biotech 7.98%
Industrial 13.64%
Contract Manufacturing 7.30%
Technology 21.48%
Energy 6.17%
Telecommunications Equipment 20.27%
Media 3.50%
Business Services 3.54%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS FOR THE GAMNA FOCUS FUND AS OF JUNE 30, 2000
-------------------------------------------------------------
<S> <C>
Corning 7.26%
Xilinx 6.19%
JDS Uniphase 5.90%
Nokia 5.85%
EMC 5.69%
Nortel Networks 5.18%
Cisco Systems 4.91%
Texas Instruments 4.71%
Solectron 4.62%
Tyco International 4.24%
</TABLE>
COMPARISON OF A $10,000 INVESTMENT IN THE GAMNA FOCUS FUND VS. THE S&P 500 INDEX
FROM INCEPTION (JULY 27, 1999) THROUGH JUNE 30, 2000
[GRAPH]
<TABLE>
<CAPTION>
GAMNA Focus Fund Class A S&P 500
------------------------ -------
<S> <C> <C>
7/27/99 $ 9,425.00 $ 10,000.00
7/30/99 $ 9,179.95 $ 9,861.00
8/31/99 $ 8,831.23 $ 9,811.70
9/30/99 $ 9,066.85 $ 9,542.85
10/29/99 $ 9,773.73 $ 10,146.92
11/30/99 $ 10,273.25 $ 10,352.90
12/31/99 $ 11,743.55 $ 10,962.69
1/31/00 $ 10,989.55 $ 10,412.36
2/29/00 $ 11,894.35 $ 10,215.57
3/31/00 $ 12,676.63 $ 11,214.65
4/28/00 $ 12,205.38 $ 10,877.09
5/31/00 $ 11,262.88 $ 10,654.11
6/30/00 $ 12,167.68 $ 10,916.20
</TABLE>
TOTAL RETURN FOR CLASS A, CLASS B AND CLASS C SHARES FROM INCEPTION (JULY 27,
1999) THROUGH JUNE 30, 2000 VS. THE S&P 500 INDEX
<TABLE>
<S> <C>
GAMNA Focus Fund--Class A 21.68%
GAMNA Focus Fund--Class B 24.00%
GAMNA Focus Fund--Class C 27.80%
S&P 500 Index 9.16%
</TABLE>
All performance numbers shown above are load adjusted. Class A share purchases
are charged a front end sales load of 5.75% of the offering price. Class B and C
redemptions are charged a deferred sales load of 5.00% and 1.00%, respectively,
on the lower of the original purchase amount or redemption proceeds. The
performance shown reflects a total return on an aggregate basis and is not
annualized. All returns include reinvested dividends. The Standard & Poor's 500
Stock Index is an-unmanaged index and, unlike a mutual fund, the performance of
an index assumes no transaction costs, taxes, management fees or other expenses.
Past Performance is Not Predictive of Future Results
<PAGE>
GAMNA FOCUS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000
<TABLE>
<CAPTION>
NUMBER
OF VALUE
SHARES (NOTE A)
------ --------
<S> <C> <C>
COMMON STOCK--97.3%
ALUMINUM PRODUCTS--2.2%
Alcoa, Incorporated ................................................ 107,700 $ 3,123,300
-----------
BIOMEDICAL/GENE--3.9%
Amgen, Incorporated** .............................................. 80,950 5,686,738
-----------
COMPUTER SERVICES--3.4%
Computer Sciences Corporation** .................................... 68,923 5,147,686
-----------
COMPUTERS--MEMORY DEVICES--5.5%
EMC Corporation .................................................... 107,708 8,286,784
-----------
COSMETICS & TOILETRIES--3.3%
Kimberly-Clark Corporation ......................................... 87,248 5,005,854
-----------
ELECTRONIC COMPONENTS--MISC.--13.1%
Celestica, Incorporated** .......................................... 78,769 3,908,912
Solectron Corporation** ............................................ 160,478 6,720,016
Xilinx, Incorporated** ............................................. 109,078 9,005,752
-----------
19,634,680
-----------
FIBER OPTICS--5.7%
JDS Uniphase Corporation** ......................................... 71,714 8,596,716
-----------
FINANCIAL SERVICES--7.4%
Merrill Lynch & Company ............................................ 45,700 5,255,500
Morgan Stanley Dean Witter & Company ............................... 69,476 5,783,877
-----------
11,039,377
-----------
MANUFACTURING--11.2%
Corning, Incorporated .............................................. 39,158 10,567,765
Tyco International Ltd ............................................. 130,218 6,169,078
-----------
16,736,843
-----------
MEDICAL PRODUCTS--4.0%
Medtronic, Incorporated ............................................ 119,005 5,927,936
-----------
MULTI-MEDIA--3.4%
Time Warner, Incorporated .......................................... 67,090 5,098,840
-----------
NETWORKING PRODUCTS--4.8%
Cisco Systems, Incorporated** ...................................... 112,428 7,146,207
-----------
OIL-FIELD SERVICES--2.9%
Schlumberger Ltd ................................................... 57,550 4,294,669
-----------
PIPELINES--3.1%
Enron Corporation .................................................. 72,600 4,682,700
-----------
RETAIL--BUILDING PRODUCTS--3.0%
The Home Depot, Incorporated ....................................... 90,900 4,539,319
-----------
3
<PAGE>
GAMNA FOCUS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
JUNE 30, 2000
<CAPTION>
NUMBER
OF VALUE
SHARES (NOTE A)
------ --------
<S> <C> <C>
RETAIL--DEPARTMENT STORES--1.9%
Target Corporation ................................................. 49,680 $ 2,881,440
-----------
TECHNOLOGY--SEMICONDUCTOR--4.6%
Texas Instruments, Incorporated .................................... 99,730 6,850,204
-----------
TELECOMMUNICATION EQUIPMENT--10.7%
Nokia Corp-ADR ..................................................... 170,476 8,513,145
Nortel Networks Corporation ........................................ 110,446 7,537,939
-----------
16,051,084
-----------
WIRELESS EQUIPMENT--3.2%
Motorola, Incorporated ............................................. 167,097 4,856,256
-----------
TOTAL COMMON STOCKS (COST $115,810,992) 145,586,633
-----------
PRINCIPAL
AMOUNT
------
TEMPORARY INVESTMENTS--0.4%
RBB Samson Street Money Market Fund (Cost $655,608) ................ $655,608 655,608
-----------
TOTAL INVESTMENTS
(COST $116,466,600*) ............................................ 97.70% $146,242,241
OTHER ASSETS IN EXCESS OF LIABILITIES .............................. 2.30% 3,387,321
------- -----------
NET ASSETS ......................................................... 100.00% $149,629,562
======= ============
</TABLE>
-------------------
* Aggregate cost for federal income tax purposes was $116,466,600. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
<TABLE>
<S> <C>
Gross Appreciation ................................... $33,838,899
Gross Depreciation ................................... (4,063,258)
----------
Net appreciation ..................................... $29,775,641
===========
</TABLE>
** Non-income producing securities.
See Notes to Financial Statements.
4
<PAGE>
GAMNA FOCUS FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost $116,466,600) ........................................................... $146,242,241
Receivables:
Dividends ........................................................................................ 37,628
Interest ......................................................................................... 4,497
Fund shares sold ................................................................................. 3,873,842
Prepaid expense ..................................................................................... 7,791
------------
TOTAL ASSETS .................................................................................. 150,165,999
------------
LIABILITIES:
Payable:
Fund shares repurchased .......................................................................... 3,216
Investment securities purchased .................................................................. 312,937
Due to affiliates ................................................................................ 65,711
Accrued expenses .................................................................................... 154,573
------------
TOTAL LIABILITIES ............................................................................. 536,437
------------
NET ASSETS APPLICABLE TO ALL SHARES OUTSTANDING
($.0001 PAR VALUE STOCK, 300,000,000 SHARES AUTHORIZED) ....................................... $149,629,562
============
Net Assets of Class A shares ........................................................................ $ 63,397,248
============
Class A Shares Outstanding .......................................................................... 4,909,604
------------
NET ASSET VALUE--CLASS A SHARES ..................................................................... $ 12.91
============
Net Assets of Class B shares ........................................................................ $ 39,934,216
============
Class B Shares Outstanding .......................................................................... 3,096,068
------------
NET ASSET VALUE--CLASS B SHARES ..................................................................... $ 12.90
============
Net Assets of Class C Shares ........................................................................ $ 46,298,098
============
Class C Shares Outstanding .......................................................................... 3,593,836
------------
NET ASSET VALUE--CLASS C SHARES ..................................................................... $ 12.88
============
NET ASSETS CONSISTED OF THE FOLLOWING AT JUNE 30, 2000
Paid-in capital ..................................................................................... $124,725,297
Undistributed net investment deficit ................................................................ (129,320)
Undistributed net realized loss ..................................................................... (4,742,056)
Unrealized appreciation on investments .............................................................. 29,775,641
------------
$149,629,562
============
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
GAMNA FOCUS FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD JULY 27, 1999* THROUGH JUNE 30, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends ........................................................................................ $ 367,665
Interest ......................................................................................... 89,735
------------
Total income .................................................................................. 457,400
------------
Expenses:
Investment advisory fee .......................................................................... 516,350
Accounting/Administration fee .................................................................... 170,265
Custodian fee .................................................................................... 17,385
Service organization fee Class A ................................................................. 76,989
Service organization fee Class B ................................................................. 80,133
Service organization fee Class C ................................................................. 77,587
Distribution fee Class B ......................................................................... 240,398
Distribution fee Class C ......................................................................... 232,762
Insurance fee .................................................................................... 15,900
Audit fee ........................................................................................ 25,200
Legal fee ........................................................................................ 147,895
Miscellaneous .................................................................................... 8,610
Printing fee ..................................................................................... 13,045
Federal and state registration fees .............................................................. 114,785
Transfer agent fee Class A ....................................................................... 36,757
Transfer agent fee Class B ....................................................................... 31,581
Transfer agent fee Class C ....................................................................... 39,884
Directors' fees .................................................................................. 24,000
Organizational costs ............................................................................. 158,715
------------
Total expenses ................................................................................... 2,028,241
Fee waivers ................................................................................... (602,050)
------------
Net expenses ........................................................................................ 1,426,191
------------
Net investment deficit ........................................................................... (968,791)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss from security transactions ........................................................ (4,742,056)
Change in unrealized appreciation of investments .................................................... 29,775,641
------------
Net gain on investments .......................................................................... 25,033,585
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................................... $ 24,064,794
============
</TABLE>
--------------------
* July 27, 1999 Commencement of operations.
See Notes to Financial Statements.
6
<PAGE>
GAMNA FOCUS FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 27, 1999*
THROUGH JUNE 30, 2000
---------------------
<S> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment deficit ................................................................. $ (968,791)
Net realized and unrealized gain on investments ........................................ 25,033,585
------------
Net increase in net assets resulting from operations ............................. 24,064,794
------------
From Capital Share Transactions:
Proceeds from shares sold
Class A ............................................................................. 56,821,430
Class B ............................................................................. 31,219,978
Class C ............................................................................. 38,289,684
Cost of shares redeemed
Class A ............................................................................. (795,026)
Class B ............................................................................. (4,000)
Class C ............................................................................. (67,298)
------------
Net increase from capital share transactions**. .................................. 125,464,768
------------
Total increase in net assets .............................................................. 149,529,562
------------
NET ASSETS:
Beginning of period ....................................................................... 100,000
------------
End of period ............................................................................. $149,629,562
============
** Capital share transactions are as follows:
SHARES
------------
For the period July 27, 1999* through June 30, 2000
Class A Shares purchased. ........................................................... 4,963,057
Shares reinvested ........................................................... 0
Shares redeemed ............................................................. (63,451)
------------
Net increase ............................................................. 4,899,606
============
Class B Shares purchased. ........................................................... 3,096,363
Shares reinvested ........................................................... 0
Shares redeemed ............................................................. (296)
------------
Net increase ............................................................. 3,096,067
============
Class C Shares purchased. ........................................................... 3,599,942
Shares reinvested ........................................................... 0
Shares redeemed ............................................................. (6,107)
------------
Net increase ............................................................. 3,593,835
============
</TABLE>
--------------------
* July 27, 1999 Commencement of operations.
See Notes to Financial Statements.
7
<PAGE>
GAMNA FOCUS FUND
FINANCIAL HIGHLIGHTS
The Table below sets forth financial data for a share of capital stock
outstanding throughout each period presented.
<TABLE>
<CAPTION>
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
07/27/99* 07/27/99* 07/27/99*
THROUGH THROUGH THROUGH
06/30/00 06/30/00 06/30/00
-------- -------- --------
CLASS A CLASS B CLASS C
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period ....................... $ 10.00 $ 10.00 $ 10.00
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment deficit .................................. (0.06) (0.11) (0.10)
Net gains on securities (both realized and unrealized) . 2.97 3.01 2.98
-------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS .................... 2.91 2.90 2.88
-------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income .................... 0.00 0.00 0.00
Distributions from capital gains ........................ 0.00 0.00 0.00
-------- -------- --------
TOTAL DISTRIBUTIONS ................................. 0.00 0.00 0.00
-------- -------- --------
Net asset value, end of period ............................. $ 12.91 $ 12.90 $ 12.88
======== ======== ========
Total Return(1) ............................................ 29.10%*** 29.00%*** 28.80%***
-------- -------- --------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) .................... $63,397 $39,934 $46,298
Ratio of gross expenses (before waivers) to average
net assets(2) ........................................ 1.56%** 2.45%** 2.45%**
Ratio of waivers to average net assets(2) ............... (0.22)%** (0.90)%** (0.80)%**
Ratio of net expenses (after waivers) to average
net assets(2) ........................................ 1.34%** 1.55%** 1.65%**
Ratio of net investment deficit to average
net assets(2) ........................................ (0.89)%** (1.04)%** (1.16)%**
Portfolio Turnover ...................................... 54.26% 54.26% 54.26%
</TABLE>
--------------------
* Commencement of operations
** Annualized
*** Not Annualized
(1) Exclusive of deduction of sales charges on investments.
(2) Annualized for periods of less than one year. Expense waivers reflect
voluntary reductions of distribution related expenses.
This report has been prepared for Shareholders and may be distributed to others
only preceded or accompanied by a current prospectus.
See Notes to Financial Statements.
8
<PAGE>
GAMNA SERIES FUNDS, INC.
GAMNA FOCUS FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The GAMNA Series Funds, Inc. (the "Company") is registered under the
Investment Company Act of 1940, as amended, (the "1940 Act") as an open-end
management investment company. The Company was organized as a Maryland
corporation on March 18, 1999. The Company presently consists of a single
series, GAMNA Focus Fund (the "Fund"). The Fund is non-diversified, as such term
is defined in the 1940 Act. The Fund offers three classes of shares, Class A,
Class B and Class C, each of which commenced operations on July 27, 1999. The
following is a summary of significant accounting policies:
SECURITY VALUATION--Portfolio securities which are traded on a national
securities exchange or included in the NASDAQ National Market System,
are valued at the last sales price, or at the last quoted bid price for
securities in which there were no sales during the day or for other
unlisted (over-the-counter) securities not reported on the NASDAQ
National Market System. For the period ended June 30, 2000, no
securities required last quoted bid price valuation. Short-term
obligations, which mature in 60 days or less, are valued at amortized
cost.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME--Securities transactions
are accounted for on trade date. The cost of investments sold is
determined by use of the specific identification method for both
financial reporting and income tax purposes. Interest income is
recorded on the accrual basis. Income, non-class specific expenses,
realized and unrealized gain/loss on investments are allocated to each
class based on their respective net assets. Expenses borne by each
class of the Fund may differ slightly because of the allocation of
other class-specific expenses.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--Substantially all of the
Fund's net investment income and net realized capital gains, if any,
will be distributed to shareholders on an annual basis. Dividends paid
on all classes are calculated at the same time. Dividends on Class B
and Class C shares are expected to be lower then those on Class A
shares due to higher distribution expenses borne by the Class B and
Class C shares. Dividends may also differ between classes due to
differences in other class specific expenses.
FEDERAL INCOME TAXES--The Fund intends to qualify as a "regulated
investment company" for federal income tax purposes under Subchapter M
of the Internal Revenue Code and make the requisite distributions to
its shareholders, which will be sufficient to relieve it from all or
substantially all federal income and excise taxes.
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 amounts reported in the
financial statements and accompanying notes. Actual results could
differ from these estimates.
ORGANIZATION COSTS--Organization costs incurred by GAMNA Focus Fund in
connection with its organization, registration and the initial public
offerings of shares were expensed as incurred.
B. TRANSACTIONS WITH AFFILIATES
Pursuant to an investment advisory agreement, with the Company, Groupama
Asset Management N.A. ("GAMNA") serves as the Fund's adviser. For its advisory
services, the Adviser is entitled to receive from the Fund a fee, computed daily
and payable monthly, at an annual rate based on its average daily net assets, of
the first $1 billion, 0.55%, over $1 billion 0.50%. Under the terms of the
Expense Limitation Agreement, a limit of 1.90% is set on the operating expenses
for each class of the Fund for the initial three years of the Fund's operations.
For the period ended June 30, 2000, each class of the Fund had an expense ratio
(after waivers) below 1.90%. Thus, no expense waiver or reimbursement was
required by the Adviser.
GAMNA is a joint venture between Finama Asset Management and Sorema N.A.
Holding Corporation ("Sorema"). Sorema has also entered into a purchase and sale
agreement with the Fund's distributor to facilitate the
9
<PAGE>
GAMNA SERIES FUNDS, INC.
GAMNA FOCUS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000
financing of payments under the Fund's distribution plan. The agreement was
effective as of July 28, 1999. Certain officers and directors of the Adviser are
officers and/or directors of GAMNA Focus Fund. No such officers received
compensation from the Fund. The directors who are not affiliated with the
Adviser have received compensation of $24,000 from the Fund.
On July 27, 1999 and November 22, 1999, various affiliates of the Adviser
acquired 7.5 million shares of the Fund for $75 million.
C. ADMINISTRATOR, DISTRIBUTOR, CUSTODIAN, AND TRANSFER AGENT
PFPC Inc., ("PFPC"), serves as the Fund's administrator and accounting
services agent. In compensation for its services, PFPC receives a monthly
minimum fee and a monthly fee from the Fund based upon average daily net assets.
PFPC has agreed to waive a portion of its administration fees during the Fund's
first year of operations. For the period ended June 30, 2000, $8,437 of these
fees have been waived.
Provident Distributors, Inc. (the "Distributor") serves as the Fund's
distributor. Class B and Class C shares each pay a distribution fee of 0.75% of
average daily net assets of the Fund attributable to such shares. Some payments
under the distribution plans may be used to compensate broker-dealers with trail
or maintenance commissions. Class A, B and C shares also pay a service fee of
0.25 % of average daily net assets of such Fund attributable to each Class.
During the period ended June 30, 2000, the Distributor waived $560,613 of
distribution and service fees.
PFPC Trust Company (the "Custodian") serves as custodian of the assets of
the Fund. As compensation for its services, the Custodian receives a fee based
on the Fund's average daily gross assets, subject to certain minimums.
PFPC also serves as the transfer agent and dividend-disbursing agent for
the Fund. As such, PFPC receives a minimum monthly fee for each class,
transaction charges and out of pocket expenses. For the period ended June 30,
2000, PFPC waived $33,000 of the Fund's transfer agent fee.
D. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of investment securities, other than
short-term obligations, for the period ended June 30, 2000, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C>
$176,056,924 $55,503,876
</TABLE>
E. RECLASSIFICATION OF CAPITAL ACCOUNTS
In accordance with the Fund's adoption of Statement of Position 93-2
"Determination, Disclosure and Financial Statement Presentation of Income,
Capital Gain and Return of Capital Distributions by Investment Companies",
$839,471 was reclassified from undistributed net investment deficit to paid-in
capital. The principal component of this reclassification is a net operating
loss which will not provide any future tax benefit to the Fund.
F. FEDERAL INCOME TAXES
At June 30, 2000, the capital loss $4,742,056 includes post October
capital losses of $3,968,056 which can be deferred to offset fiscal year 2001
net realized securities gains. The remaining $774,000 can be carried forward
until June 30, 2008 to offset future net realized securities gains.
G. SHAREHOLDER FEES
Class A share purchases are charged a front end sales load of 5.75% of the
offering price. Class B and C redemptions are charged a deferred sales load of
5.00% and 1.00%, respectively, on the lower of the original purchase amount or
redemption proceeds.
10
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholders
GAMNA Series Funds, Inc.:
We have audited the accompanying statement of assets and liabilities of GAMNA
Focus Fund (the Fund) of the GAMNA Series Funds, Inc., including the schedule of
portfolio investments, as of June 30, 2000 and the related statements of
operations and changes in net assets and financial highlights for the period
from July 27, 1999 (commencement of operations) through June 30, 2000. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit 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 and
financial highlights. Our procedures included confirmation of securities owned
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 audit provides 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 GAMNA
Focus Fund as of June 30, 2000, the results of its operations, the changes in
its net assets and the financial highlights for the period from July 27, 1999
(commencement of operations) through June 30, 2000, in conformity with generally
accepted accounting principles.
KPMG LLP
Philadelphia, Pennsylvania
August 4, 2000
11
<PAGE>
DIRECTORS & OFFICERS
Mark P. Bronzo
CHAIRMAN, PRESIDENT & CHIEF EXECUTIVE OFFICER
Robert T. Adams
DIRECTOR
Vincent Benefico
DIRECTOR
James S. Carluccio
DIRECTOR
Edward Fogarty, Jr.
DIRECTOR
Joseph C. O'Connor
DIRECTOR (NOMINEE) AND SENIOR VICE PRESIDENT
Daniel W. Portanova
DIRECTOR, SENIOR VICE PRESIDENT, TREASURER AND CHIEF OPERATING OFFICER
Jonathan M. Rather
DIRECTOR
Iona K. Watter
SECRETARY
Mary Jane Maloney
ASSISTANT SECRETARY
INVESTMENT ADVISER
Groupama Asset Management N.A.
199 Water Street
New York, New York 10038
DISTRIBUTOR
Provident Distributors, Inc.
3200 Horizon Drive
King of Prussia, PA 19406
ADMINISTRATOR
PFPC, Inc.
400 Bellevue Parkway, Suite 108
Wilmington, DE 19809-3710
TRANSFER AGENT
PFPC, Inc.
400 Bellevue Parkway, Suite 108
Wilmington, DE 19809-3710
