<PAGE>
GAMNA FOCUS FUND
Distributed by:
Provident Distributors, Inc.
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
DECEMBER 31ST, 1999
<PAGE>
Dear Shareholders:
1999 will always be a special year as it was the inaugural year for the
GAMNA Focus Fund, the first mutual fund offering from Groupama Asset Management
N.A. The GAMNA Focus Fund capitalizes upon an investment process that has
provided our separate account investors with outstanding results over the past
decade. Our process relies upon a combination of fundamental macroeconomic and
sector analysis, coupled with a disciplined bottom up analysis, and has proven
flexible enough to adapt to a continuously changing marketplace. Our ability to
adjust to shifting economic trends is critical. Those firms that do not respond
to the evolving trends are destined to disappoint their shareholders. This is
something we are determined not to do.
The current economic expansion is the longest in U.S. history, yet even
more remarkable is the stability of prices, the earnings growth of our largest
companies, and the productivity of our workers. This is a very favorable
environment for our stock markets, one that we expect to continue. Near term, as
the Federal Reserve continues to raise interest rates in order to slow the
economy down to a more sustainable pace, we expect the markets will be sluggish.
However, we believe the Federal Reserve will be successful in its efforts,
allowing both the economic expansion and stock market advance to continue.
We think the GAMNA Focus Fund is well positioned to reap the rewards of this
favorable market environment.
In closing, I would like to thank you for helping us successfully launch
the GAMNA Focus Fund. Our goal is to provide our shareholders with superior
performance on a consistent basis. Thank you for your confidence in GAMNA.
Sincerely,
/s/ Mark P. Bronzo
- ------------------
Mark P. Bronzo, Chairman, President & CEO February 28, 2000
<PAGE>
GAMNA FOCUS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF VALUE
SHARES (NOTE A)
--------- ------------
<S> <C> <C>
COMMON STOCK--99.7%
COMMERCIAL SERVICES--4.3%
Cendant Corporation ................................................... 178,212 $ 4,733,756
------------
COMPUTERS--MEMORY DEVICES--5.3%
EMC Corporation ....................................................... 53,854 5,883,550
------------
COMPUTER SERVICES--4.7%
Computer Sciences Corporation ......................................... 54,523 5,159,239
------------
COSMETICS & TOILETRIES--3.9%
Kimberly-Clark Corporation ............................................ 65,948 4,303,107
------------
ELECTRONIC COMPO--MISC.--5.4%
Solectron Corporation** ............................................... 62,389 5,934,754
------------
FINANCIAL SERVICES--7.7%
Citigroup, Incorporated ............................................... 66,675 3,704,630
Morgan Stanley Dean Witter & Company .................................. 33,388 4,766,137
------------
8,470,767
------------
MANUFACTURING--9.4%
Corning, Incorporated ................................................. 44,748 5,769,695
Tyco International LTD ................................................ 115,218 4,479,100
------------
10,248,795
------------
MEDICAL PRODUCTS--3.0%
Johnson & Johnson ..................................................... 35,175 3,275,672
------------
MULTI-LINE INSURANCE--3.3%
American International Group, Incorporated ............................ 33,860 3,661,113
------------
NETWORKING PRODUCTS--5.2%
Cisco Systems, Incorporated** ......................................... 53,364 5,716,619
------------
RETAIL--BUILDING PRODUCTS--8.2%
Lowe's Companies, Incorporated ........................................ 59,947 3,581,833
The Home Depot, Incorporated .......................................... 79,901 5,478,178
------------
9,060,011
------------
RETAIL--DEPARTMENT STORES--3.3%
Dayton-Hudson Corporation ............................................. 49,680 3,648,375
------------
TECHNOLOGY--SEMICONDUCTOR--4.3%
Texas Instruments, Incorporated ....................................... 49,865 4,830,672
------------
TELECOMMUNICATION EQUIPMENT--15.8%
Lucent Technologies, Incorporated ..................................... 62,779 4,696,654
Nokia Corporation ADR ................................................. 42,619 8,097,610
Tellabs, Incorporated** ............................................... 71,590 4,595,183
------------
17,389,447
------------
</TABLE>
2
<PAGE>
GAMNA FOCUS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
DECEMBER 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF VALUE
SHARES (NOTE A)
--------- ------------
<S> <C> <C>
TELEPHONE--INTEGRATED--5.6%
AT & T Corporation .................................................... 64,684 $ 3,282,713
SBC Communications, Incorporated ...................................... 58,549 2,854,264
------------
6,136,977
------------
TELEPHONE--LONG DISTANCE--4.0%
MCI WorldCom, Incorporated** .......................................... 82,508 4,378,053
------------
WIRELESS EQUIPMENT--6.3%
Motorola, Incorporated ................................................ 47,499 6,994,227
------------
TOTAL COMMON STOCKS ($91,600,942) ........................................ 109,825,134
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
TEMPORARY INVESTMENTS--0.6%
Provident Institutional Funds TempCash Dollar ......................... $320,013 $ 320,013
RBB Samson Street Money Market Fund ................................... 320,013 320,013
------------
TOTAL TEMPORARY INVESTMENTS (Cost $640,026) .............................. 640,026
------------
TOTAL INVESTMENTS
(Cost $92,240,968*) ................................................... 100.03% $110,465,160
--------- ------------
LIABILITIES IN EXCESS OF
OTHER ASSETS .......................................................... (0.03)% (278,853)
--------- ------------
NET ASSETS ............................................................... 100.00% $110,186,307
--------- ------------
--------- ------------
</TABLE>
- ----------------------------------
* Aggregate cost for federal income tax purposes was $92,240,968 The aggregate
gross unrealized appreciation (depreciation) for all securities is as
follows:
<TABLE>
<S> <C>
Gross Appreciation ........................ $20,190,205
Gross Depreciation ........................ (1,966,013)
-----------
Net appreciation .......................... $18,224,192
-----------
-----------
</TABLE>
** Non-income producing security.
See Notes to Financial Statements.
3
<PAGE>
GAMNA FOCUS FUND
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
DECEMBER 31,
1999
(UNAUDITED)
--------------
<S> <C>
ASSETS:
Investments, at value (Cost $92,240,968) ............................................ $110,465,160
Receivables:
Dividends ........................................................................ 36,717
Interest ......................................................................... 5,441
Prepaid expense ..................................................................... 91,235
------------
TOTAL ASSETS ..................................................................... 110,598,553
------------
LIABILITIES:
Payable:
Investment securities purchased .................................................. 249,676
Accrued expenses .................................................................... 162,570
------------
TOTAL LIABILITIES ............................................................. 412,246
------------
NET ASSETS APPLICABLE TO ALL SHARES OUTSTANDING ..................................... $110,186,307
------------
------------
Net Assets of Class A shares ........................................................ $ 38,993,386
------------
------------
Class A Shares Outstanding .......................................................... 3,128,909
------------
NET ASSET VALUE--CLASS A SHARES ..................................................... $12.46
------
------
Net Assets of Class B shares ........................................................ $ 37,357,839
------------
------------
Class B Shares Outstanding .......................................................... 3,000,001
------------
NET ASSET VALUE--CLASS B SHARES ..................................................... $12.45
------
------
Net Assets of Class C Shares ........................................................ $ 33,835,082
------------
------------
Class C Shares Outstanding .......................................................... 2,718,108
------------
NET ASSET VALUE--CLASS C SHARES ..................................................... $12.45
------
------
NET ASSETS CONSISTED OF THE FOLLOWING AT DECEMBER 31, 1999:
Paid-in capital ..................................................................... $ 91,083,197
Undistributed net investment income (deficit) ....................................... (346,730)
Undistributed net realized gain ..................................................... 1,225,648
Unrealized appreciation on investments .............................................. 18,224,192
------------
$110,186,307
------------
------------
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
GAMNA FOCUS FUND
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED
DECEMBER 31, 1999
(UNAUDITED)*
--------------------
<S> <C>
INVESTMENT INCOME:
Income:
Dividends .......................................................................... $ 134,245
Interest ........................................................................... 56,514
-----------
Total income .................................................................... 190,759
-----------
Expenses:
Investment advisory fee ............................................................ 169,480
Accounting/Administration fee ...................................................... 59,645
Custodian fee ...................................................................... 4,726
Service Organization fee ........................................................... 77,041
Distribution fee ................................................................... 183,011
Insurance fee ...................................................................... 6,690
Audit fee .......................................................................... 9,263
Legal fee .......................................................................... 64,411
Miscellaneous ...................................................................... 1,756
Printing fee ....................................................................... 4,884
Federal and state registration fees ................................................ 40,793
Transfer Agent fee ................................................................. 24,994
Directors' fees .................................................................... 12,000
Organizational costs ............................................................... 105,613
-----------
Total expenses ..................................................................... 764,307
Service Organization fee waiver ................................................. (74,311)
Distribution fee waiver ......................................................... (152,507)
-----------
Net expenses .......................................................................... 537,489
-----------
Net investment income (deficit) .................................................... (346,730)
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from security transactions .......................................... 1,225,648
Change in unrealized appreciation of investments ...................................... 18,224,192
-----------
Net gain on investments ............................................................ 19,449,840
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $19,103,110
-----------
-----------
</TABLE>
- ----------------------------------
* July 27, 1999 Commencement of operations.
See Notes to Financial Statements.
5
<PAGE>
GAMNA FOCUS FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED
DECEMBER 31, 1999
(UNAUDITED)*
--------------------
<S> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income (deficit) ................................................... $ (346,730)
Net realized and unrealized gain on investments ................................... 19,449,840
------------
Net increase in net assets resulting from operations ........................ 19,103,110
------------
From Capital Share Transactions:
Proceeds from shares sold
Class A ........................................................................ 33,753,906
Class B ........................................................................ 30,000,000
Class C ........................................................................ 27,508,885
Cost of shares redeemed
Class A ........................................................................ (279,594)
Class B ........................................................................ --
Class C ........................................................................ --
------------
Net increase from capital share transactions** .............................. 90,983,197
------------
Total increase in net assets ......................................................... 110,086,307
------------
NET ASSETS:
Beginning of period .................................................................. 100,000
------------
End of period ........................................................................ $110,186,307
------------
------------
** Capital share transactions are as follows:
<CAPTION>
SHARES
------------
<S> <C>
For the period ended December 31, 1999
Class A Shares purchased ....................................................... 3,138,309
Shares reinvested ...................................................... --
Shares redeemed ........................................................ (19,398)
------------
Net increase ........................................................ 3,118,911
------------
------------
Class B Shares purchased ....................................................... 3,000,000
Shares reinvested ...................................................... --
Shares redeemed ........................................................ --
------------
Net increase ........................................................ 3,000,000
------------
------------
Class C Shares purchased ....................................................... 2,722,472
Shares reinvested ...................................................... --
Shares redeemed ........................................................ (4,365)
------------
Net increase ........................................................ 2,718,107
------------
------------
</TABLE>
- ----------------------------------
* July 27, 1999 Commencement of operations.
See Notes to Financial Statements.
5
<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>
07/27/99* 07/27/99* 07/27/99*
THROUGH THROUGH THROUGH
12/31/99 12/31/99 12/31/99
(UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------- -----------
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 income .................................... $ (0.02) $ (0.05) $(0.05)
Net gains on securities (both realized and unrealized) ... 2.48 2.50 2.50
--------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS ...................... 2.46 2.45 2.45
--------- -------- --------
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 .............................. $ 12.46 $ 12.45 $12.45
--------- -------- --------
Total Return(1) ............................................. 24.60%*** 24.50%*** 24.50%***
--------- -------- --------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) .................... $ 38,993 $37,358 $33,835
Ratio of gross expenses (before waivers) to average
net assets(2) ........................................ 1.63%** 2.71%** 2.70%**
Ratio of waivers to average net assets(2) ............... (0.21)%** (0.89)%** (0.86)%**
Ratio of net expenses (after waivers) to average
net assets(2) ........................................ 1.42%** 1.82%** 1.84%**
Ratio of net investment income to average net assets(2) . (0.83)%** (1.19)%** (1.22)%**
Portfolio Turnover ...................................... 28.83% 28.83% 28.83%
</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.
7
<PAGE>
GAMNA SERIES FUNDS, INC.
GAMNA FOCUS FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
(UNAUDITED)
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. 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.
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 than 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. (the "Adviser") 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 the Fund's initial fiscal year. The Advisor will waive or
reimburse fees if operating expenses exceed that limit.
Groupama Asset Management N.A. 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 financing of payments under the Fund's distribution plan. The
agreement was effective as of July 28, 1999.
8
<PAGE>
GAMNA SERIES FUNDS, INC.
GAMNA FOCUS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
(UNAUDITED)
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 $12,000 from the Fund.
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 December 31, 1999, $4,272 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, Class B and Class 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 December 31, 1999, the Distributor waived
$226,818 of the distribution 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 expense. PFPC has agreed to waive a
portion of its minimum transfer agency charges for the Fund's first year of
operations.
D. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of investment securities, other than
short-term obligations, for the period ended December 31, 1999, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ -----------
<S> <C>
$111,849,049 $21,473,755
</TABLE>
9
<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
Daniel W. Portanova
DIRECTOR, SENIOR VICE PRESIDENT, TREASURER AND
CHIEF OPERATING OFFICER
Jonathan M. Rather
DIRECTOR
Iona K. Watter
SECRETARY
Norman Van Horn
ASSISTANT TREASURER
Mary Jane Maloney
ASSISTANT SECRETARY
INVESTMENT ADVISER
Groupama Asset Management N.A.
180 Maiden Lane
New York, New York 10038
DISTRIBUTOR
Provident Distributors, Inc.
Four Falls Corporate Center
Sixth Floor
West Conshohocken, PA 19428-2961
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
