________________________________________________________________________________
INTERNET 100 FUND
________________________________________________________________________________
a series of Woodlawn Funds Trust
SEMI-ANNUAL REPORT 1999
FOR THE PERIOD ENDED DECEMBER 31
INVESTMENT ADVISOR
Internet 100 Advisors, L.L.C.
354 Broadway
New York, New York 10013
877-655-1110
INTERNET 100 FUND
105 North Washington Street
Post Office Drawer 69
Rocky Mount, North Carolina 27802-0069
1-800-525-3863
This Report has been prepared for shareholders
and may be distributed to others only if preceded
or accompanied by a current prospectus.
<PAGE>
February 18, 2000
Dear Fellow Internet Investor:
The launch of the Internet 100 Fund coincided with a period when investors began
to recognize in great numbers the potential growth of the new internet-based
economy. Your fund achieved an 83.40% total return from inception on September
8, 1999 through December 31, 1999. For the fourth quarter of 1999, the fund's
total return of 76.35% ranked it among the "Fourth Quarter's Best Performers" as
listed in the January 10, 2000 issue of The Wall Street Journal.
A number of catalysts converged to produce these exceptional short-term results,
including a strong economic background, low inflation, solid earnings growth and
heavy cash inflows into technology and Internet stocks. The hottest Internet
segments during this period were business-to-business e-commerce (B2B) stocks,
Internet infrastructure companies and firms specializing in Internet security.
B2B simply refers to transactions conducted over the Internet between two
businesses as contrasted to B2C companies who sell their products to consumers.
The interest in B2B stocks has been fueled by expectations for exponential
growth for companies that serve this vast market. Forrester Research, a leading
independent technology research firm, predicts that the B2B internet economy
will be more than ten times the size of the B2C market. They expect the B2B
market to grow from $109 billion to $2.7 trillion in 2004.
The fund owned a number of B2B stocks that appreciated dramatically in the
fourth quarter of 1999. Commerce One and Ariba provide Internet solutions that
allow companies to manage their purchasing of indirect goods in a more efficient
manner. VerticalNet is a diversified B2B play that operates more than 50 highly
focused B2B trade communities on the Internet. Each site provides content,
community and commerce for members within a specific industry.
Internet infrastructure companies - companies that provide software solutions
that enable the development of mission critical web-based systems - also
contributed strongly to the fund's performance. Particularly noteworthy were
Vitria, E.Piphany, Broadvision, Silknet and Vignette.
Looking forward, we expect both the B2B and Internet infrastructure segments to
continue to show exceptional growth for some time to come. We also expect
wireless data to be strong as "internet everywhere" becomes a reality. On the
flip side, we expect stocks of B2C e-tailing and pure content businesses to
remain weak. Companies in these segments will have to prove that their business
models can generate strong and sustainable profit growth in the not-too-distant
future before investors rotate back to these stocks.
<PAGE>
We believe strongly that we are still in the very early stages of the
development of the Internet economy and that many exciting investment
opportunities are in front of us. Because the stocks of Internet companies will
remain highly volatile, we designed the Internet 100 Fund to be a
well-diversified basket of Internet leaders. We like to think of the Fund as the
"aggressive point" of the pyramid that represents your overall investment
portfolio.
Thank you for your investment. If you have any questions or feedback, please
send us an email at [email protected].
Sincerely,
/s/ Paul de Leon
Paul de Leon
President & Fund Manager
Internet 100 Fund
Total returns reflect past performance and are no guarantee of future investment
performance. Share price, yield, and return on an actual investment will
fluctuate, and you may have a gain or loss when you sell your shares. Average
annual returns include changes in share price, and reinvestment of dividends and
capital gains.
This report is submitted for the general information of the shareholders of each
fund. It is not authorized for the distribution to prospective investors in each
fund unless it is preceded or accompanied by a current prospectus, which
includes details regarding the Fund's objectives, policies, fees and other
information.
The following table lists the percentage of the Fund each holding represented as
of 12/31/99:
Commerce One - 2.81%
Ariba - 3.05%
VerticalNet - 0.78%
Vitria - 1.12%
E.Piphany - 1.17%
Broadvision - 1.79%
Silknet - 0.32%
Vignette - 1.40%
Distributed by Capital Investment Group, Inc., Raleigh, North Carolina.
<PAGE>
Fund News:
- ----------
The fund is currently available through TD Waterhouse, Morgan Stanley Dean
Witter Online, Ameritrade, and E*trade. We expect to be available through
Schwab, Fidelity, DLJ Direct and National Discount Brokers in the next several
weeks and will send out a notice as we are added to these platforms.
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
INTERNET 100 FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 96.94%
Commercial Services - 0.68%
(a)USWeb Corporation ........................................................ 320 $ 14,220
----------
Computer Software & Services - 92.18%
(a)24/7 Media, Inc. ......................................................... 70 3,937
(a)Agile Software Corporation ............................................... 60 13,034
(a)Allaire Corporation ...................................................... 30 4,350
(a)Amazon.com, Inc. ......................................................... 600 45,675
(a)America Online, Inc. ..................................................... 1,010 76,255
(a)AppNet, Inc. ............................................................. 90 3,937
(a)Ariba, Inc. .............................................................. 360 63,855
(a)Art Technology Group, Inc. ............................................... 110 14,300
(a)Ask Jeeves, Inc. ......................................................... 80 9,035
(a)At Home Corporation ...................................................... 1,170 50,164
(a)barnesandnoble.com inc ................................................... 450 6,384
(a)BroadVision, Inc. ........................................................ 220 37,414
(a)CareInsite, Inc. ......................................................... 260 20,930
(a)Check Point Software Technologies Ltd. ................................... 150 29,831
(a)Chemdex Corporation ...................................................... 90 9,990
(a)China.com Corporation .................................................... 150 11,794
(a)CMGI Inc. ................................................................ 400 110,750
(a)CNET, Inc. ............................................................... 300 17,025
(a)Commerce One, Inc. ....................................................... 300 58,950
(a)Concentric Network Corporation ........................................... 110 3,389
(a)Covad Communications Group, Inc. ......................................... 260 14,544
(a)Critical Path, Inc. ...................................................... 110 10,381
(a)CyberSource Corporation .................................................. 80 4,140
(a)Digex, Inc. .............................................................. 190 13,062
(a)Digital Island ........................................................... 100 9,512
(a)DoubleClick Inc. ......................................................... 150 37,959
(a)Drugstore.com, Inc. ...................................................... 130 4,704
(a)EarthLink Network, Inc. .................................................. 100 4,250
(a)eBay Inc. ................................................................ 340 42,564
(a)Engage Technologies, Inc. ................................................ 150 9,000
(a)Entrust Technologies Inc. ................................................ 140 8,391
(a)eToys Inc. ............................................................... 480 12,600
(a)Exodus Communications, Inc. .............................................. 600 53,288
(a)E.piphany, Inc. .......................................................... 110 24,544
(a)F5 Networks, Inc. ........................................................ 60 6,840
(a)Freeserve plc ............................................................ 370 34,040
(a)Go2Net, Inc. ............................................................. 85 7,395
(Continued)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
INTERNET 100 FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Computer Software & Services (continued)
(a)go.com ................................................................... 207 $ 4,916
(a)GoTo.com, Inc. ........................................................... 170 9,988
(a)Healtheon/WebMD Corporation .............................................. 260 9,750
(a)High Speed Access Corp. .................................................. 150 2,700
(a)HomeStore.com, Inc. ...................................................... 250 18,563
(a)InfoSpace.com, Inc. ...................................................... 150 32,100
(a)Inktomi Corporation ...................................................... 440 39,050
(a)Internap Network Services Corporation .................................... 260 44,980
(a)Internet Capital Group, Inc. ............................................. 920 156,400
(a)Internet Initiative Japan Inc. ........................................... 180 17,494
(a)InterWorld Corporation ................................................... 80 6,830
(a)ISS Group, Inc. .......................................................... 120 8,535
(a)iVillage Inc. ............................................................ 80 1,620
(a)iXL Enterprises, Inc. .................................................... 240 13,320
(a)Kana Communications, Inc. ................................................ 120 24,600
(a)Liberate Technologies, Inc. .............................................. 130 33,410
(a)Liquid Audio, Inc. ....................................................... 60 1,575
(a)LookSmart, Ltd. .......................................................... 260 7,020
(a)Lycos, Inc. .............................................................. 320 25,460
(a)Media Metrix, Inc. ....................................................... 60 2,145
(a)MindSpring Enterprises, Inc. ............................................. 210 5,545
(a)MP3.com, Inc. ............................................................ 250 7,922
(a)NBC Internet, Inc. ....................................................... 50 3,863
(a)Network Solutions, Inc. .................................................. 140 30,459
(a)NetZero, Inc. ............................................................ 380 10,236
(a)NorthPoint Communications Group, Inc. .................................... 340 8,160
(a)Phone.com, Inc. .......................................................... 160 18,550
(a)Portal Software, Inc. .................................................... 280 28,805
(a)Priceline.com Incorporated ............................................... 600 28,425
(a)Prodigy Communications Corporation ....................................... 200 3,875
(a)Proxicom, Inc. ........................................................... 70 8,702
(a)PSINet Inc. .............................................................. 240 14,820
(a)Razorfish Inc. ........................................................... 80 7,610
(a)RealNetworks, Inc. ....................................................... 300 36,356
(a)Rhythms NetConnections Inc. .............................................. 280 8,680
(a)RSA Security Inc. ........................................................ 120 9,300
(a)S1 Corporation ........................................................... 90 7,031
(a)Scient Corporation ....................................................... 220 19,016
(a)Silknet Software, Inc. ................................................... 40 6,630
(a)Software.com, Inc. ....................................................... 170 16,320
(a)Stamps.com Inc. .......................................................... 100 4,163
(Continued)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
INTERNET 100 FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Computer Software & Services (continued)
(a)StarMedia Network, Inc. .................................................. 180 $ 7,211
(a)USinternetworking, Inc. .................................................. 180 12,578
(a)VeriSign, Inc. ........................................................... 460 87,745
(a)Verity, Inc. ............................................................. 60 2,554
(a)VerticalNet, Inc. ........................................................ 100 16,400
(a)Viant Corporation ........................................................ 70 6,930
(a)Vignette Corporation ..................................................... 180 29,340
(a)Vitria Technology, Inc. .................................................. 100 23,400
(a)Yahoo! Inc. .............................................................. 270 116,826
(a)Ziff-Davis Inc. .......................................................... 230 4,830
----------
1,940,951
----------
Entertainment - 0.44%
(a)Ticketmaster Online-CitySearch, Inc. ..................................... 240 9,225
----------
Financial Services - 0.94%
(a)Ameritrade Holding Corporation ........................................... 640 13,880
(a)E-LOAN, Inc. ............................................................. 120 1,950
(a)NextCard, Inc. ........................................................... 140 4,043
----------
19,873
----------
Financial - Savings/Loans/Thrifts - 0.12%
(a)Telebanc Financial Corporation ........................................... 100 2,600
----------
Financial - Securities Brokers - 1.51%
(a)Donaldson, Lufkin & Jenrette, Inc. ....................................... 270 3,662
(a)E*TRADE Group, Inc. ...................................................... 950 24,819
(a)Wit Capital Group, Inc. .................................................. 200 3,400
----------
31,881
----------
Human Resources - 0.19%
(a)HotJobs.com, Ltd. ........................................................ 90 3,932
----------
Telecommunications - 0.88%
(a)Net2Phone, Inc. .......................................................... 150 6,891
(a)Verio Inc. ............................................................... 255 11,777
----------
18,668
----------
Total Common Stocks (Cost $1,503,532) ........................................................... 2,041,350
----------
INVESTMENT COMPANY - 0.66%
Evergreen Money Market Treasury Institutional Money
Market Fund Institutional Service Shares ................................. 13,701 13,701
(Cost $13,701) ----------
(Continued)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
INTERNET 100 FUND
PORTFOLIO OF INVESTMENTS
December 31, 1999
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
(note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Value of Investments (Cost $1,517,233 (b)) ..................................... 97.60% $2,055,051
Other Assets Less Liabilities ........................................................ 2.40% 50,624
------ ----------
Net Assets .................................................................... 100.00% $2,105,675
====== ==========
(a) Non-income producing investment.
(b) Aggregate cost for financial reporting and federal income tax purposes is the same. Unrealized appreciation
(depreciation) of investments for financial reporting and federal income tax purposes is as follows:
Unrealized appreciation ........................................................................... $ 616,000
Unrealized depreciation ........................................................................... (78,182)
----------
Net unrealized appreciation ....................................................... $ 537,818
==========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
INTERNET 100 FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
(Unaudited)
ASSETS
Investments, at value (cost $1,517,233) ......................................................... $2,055,051
Cash ............................................................................................ 35,421
Income receivable ............................................................................... 273
Due from advisor (note 2) ....................................................................... 18,778
----------
Total assets ............................................................................... 2,109,523
----------
LIABILITIES
Accrued expenses ................................................................................ 3,848
----------
NET ASSETS
(applicable to 114,822 shares outstanding; unlimited
shares of no par value beneficial interest authorized) ......................................... $2,105,675
==========
NET ASSET VALUE, REDEMPTION AND OFFERING PRICE PER SHARE
($2,105,675 / 114,822 shares) ................................................................... $18.34
==========
NET ASSETS CONSIST OF
Paid-in capital ................................................................................. $1,570,057
Accumulated net investment loss ................................................................. (1,734)
Accumulated net realized loss on investments .................................................... (466)
Net unrealized oappreciation on investments ..................................................... 537,818
----------
$2,105,675
==========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
INTERNET 100 FUND
STATEMENT OF OPERATIONS
For the period beginning September 8, 1999
(Commencement of operations) to
December 31, 1999
(Unaudited)
INVESTMENT LOSS
Income
Dividends ...................................................................................... $ 631
---------
Expenses
Investment advisory fees (note 2) .............................................................. 1,774
Fund administration fees (note 2) .............................................................. 414
Audit fees ..................................................................................... 4,119
Legal fees ..................................................................................... 2,670
Fund accounting fees (note 2) .................................................................. 8,400
Custody fees ................................................................................... 2,663
Securities pricing fees ........................................................................ 1,744
Shareholder recordkeeping fees ................................................................. 2,800
Registration and filing administration fees .................................................... 1,517
Other fees (note 2) ............................................................................ 2,603
Shareholder servicing expenses ................................................................. 2,583
Registration and filing expenses ............................................................... 1,874
Trustee fees and meeting expenses .............................................................. 2,538
Printing expenses .............................................................................. 1,093
Other operating expenses ....................................................................... 594
---------
Total expenses ........................................................................... 37,386
---------
Less:
Expense reimbursements (note 2) ..................................................... (33,247)
Investment advisory fees waived (note 2) ............................................ (1,774)
---------
Net expenses ............................................................................. 2,365
---------
Net investment loss ................................................................. (1,734)
---------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized loss from investment transactions ...................................................... (466)
Increase in unrealized appreciation on investments .................................................. 537,818
---------
Net realized and unrealized gain on investments ................................................ 537,352
---------
Net increase in net assets resulting from operations ..................................... $ 535,618
=========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
INTERNET 100 FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended
December 31,
1999 (b)
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
Operations
Net investment loss ........................................................................... $ (1,734)
Net realized loss from investment transactions ................................................ (466)
Increase in unrealized oappreciation on investments ........................................... 537,818
----------
Net increase in net assets resulting from operations ...................................... 535,618
----------
Capital share transactions
Increase in net assets resulting from capital share transactions (a) .......................... 1,570,057
----------
Total increase in net assets .............................................................. 2,105,675
NET ASSETS
Beginning of period ............................................................................... 0
----------
End of period ..................................................................................... $2,105,675
==========
(a) A summary of capital share activity follows:
--------------------------------------------
Period ended
December 31, 1999 (b)
Shares Value
--------------------------------------------
Shares sold .......................................................................... 124,291 $1,677,877
Shares redeemed ...................................................................... (9,469) (107,820)
----------
Net increase .................................................................... 114,822 $1,570,057
========== ==========
(b) For the period beginning September 8, 1999 (commencement of operations) to December 31, 1999.
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
INTERNET 100 FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended
December 31,
1999 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .................................................................. $10.00
Income from investment operations
Net investment loss ....................................................................... (0.02)
Net realized and unrealized gain on investments ........................................... 8.36
----------
Total from investment operations .................................................... 8.34
----------
Net asset value, end of period ........................................................................ $18.34
==========
Total return .......................................................................................... 83.40%
==========
Ratios/supplemental data
Net assets, end of period ...................................................................... $2,105,675
==========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees ............................................. 15.86 % (b)
After expense reimbursements and waived fees .............................................. 1.00 % (b)
Ratio of net investment (loss) to average net assets
Before expense reimbursements and waived fees ............................................. (15.57)% (b)
After expense reimbursements and waived fees .............................................. (0.74)% (b)
Portfolio turnover rate ........................................................................ 1.07 %
(a) For the period beginning September 8, 1999 (commencement of operations) to December 31, 1999.
(b) Annualized.
See accompanying notes to financial statements
</TABLE>
<PAGE>
INTERNET 100 FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION
The Internet 100 Fund (the "Fund") is a non-diversified series of
shares of beneficial interest of the Woodlawn Funds Trust (the
"Trust"). The Trust, an open-ended investment company, was organized on
May 19, 1999 as an unincorporated business trust under Delaware law and
is registered under the Investment Company Act of 1940, as amended. The
investment objective of the Fund is to seek capital appreciation by
investing in equity securities of the Internet 100 Index - an index
comprised of the 100 largest Internet companies traded on the NYSE, the
AMEX, and the NASDAQ stock market. The Fund commenced operations on
September 8, 1999. The following is a summary of significant accounting
policies followed by the Fund.
A. Security Valuation - The Fund's investments in securities are
carried at value. Securities listed on an exchange or quoted on a
national market system are valued at the last sales price as of
4:00 p.m. New York time on the day of valuation. Other securities
traded in the over-the-counter market and listed securities for
which no sale was reported on that date are valued at the most
recent bid price. Securities for which market quotations are not
readily available, if any, are valued by using an independent
pricing service or by following procedures approved by the Board
of Trustees. Short-term investments are valued at cost which
approximates value.
B. Federal Income Taxes - No provision has been made for federal
income taxes since substantially all taxable income has been
distributed to shareholders. It is the policy of the Fund to
comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and to make
sufficient distributions of taxable income to relieve it from all
federal income taxes.
C. Investment Transactions - Investment transactions are recorded on
the trade date. Realized gains and losses are determined using
the specific identification cost method. Interest income is
recorded daily on an accrual basis. Dividend income is recorded
on the ex-dividend date.
D. Distributions to Shareholders - The Fund may declare dividends
quarterly, payable in March, June, September and December, on a
date selected by the Trust's Trustees. In addition, distributions
may be made annually in December out of net realized gains
through October 31 of that year. Distributions to shareholders
are recorded on the ex-dividend date. The Fund may make a
supplemental distribution subsequent to the end of its fiscal
year ending June 30.
E. 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 of assets, liabilities, expenses and revenues reported in
the financial statements. Actual results could differ from those
estimates.
NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
Pursuant to an investment advisory agreement, Internet 100 Advisors,
L.L.C. (the "Advisor") provides the Fund with a continuous program of
supervision of the Fund's assets, including the composition of its
portfolio, and furnishes advice and recommendations with respect to
investments, investment policies and the purchase and sale of
securities. As compensation for its services, the Advisor receives a
fee at the annual rate of 0.75% of the Fund's average daily net assets.
(Continued)
<PAGE>
INTERNET 100 FUND
NOTES TO FINANCIAL STATEMENTS
December, 31, 1999
(Unaudited)
The Advisor intends to voluntarily waive all or a portion of its fee
and reimburse expenses of the Fund to limit total Fund operating
expenses to 1.00% of the average daily net assets of the Fund. There
can be no assurance that the foregoing voluntary fee waivers or
reimbursements will continue. The Advisor has voluntarily waived a
portion of its fee amounting to $1,774 ($0.02 per share) and has agreed
to reimburse $33,247 of the Fund's operating expenses for the period
ended December 31, 1999.
The Fund's administrator, The Nottingham Company (the "Administrator"),
provides administrative services to and is generally responsible for
the overall management and day-to-day operations of the Fund pursuant
to an accounting and administrative agreement with the Trust. As
compensation for its services, the Administrator receives a fee at the
annual rate of 0.175% of the Fund's first $125 million of average daily
net assets, 0.150% of average daily net assets for the next $125
million, and 0.125% of average daily net assets over $250 million. The
Administrator also receives a monthly fee of $2,000 for accounting and
recordkeeping services. The contract with the Administrator provides
that the aggregate fees for the aforementioned administration,
accounting and recordkeeping services shall not be less than $3,000 per
month. The Administrator also charges the Fund for certain expenses
involved with the daily valuation of portfolio securities.
North Carolina Shareholder Services, L.L.C. (the "Transfer Agent")
serves as the Fund's transfer, dividend paying, and shareholder
servicing agent. The Transfer Agent maintains the records of each
shareholder's account, answers shareholder inquiries concerning
accounts, processes purchases and redemptions of the Fund shares, acts
as dividend and distribution disbursing agent, and performs other
shareholder servicing functions.
Certain Trustees and officers of the Trust are also officers of the
Advisor, the distributor or the Administrator.
NOTE 3 - PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, other than short-term investments,
aggregated $1,506,966 and $2,969, respectively, for the period ended
December 31, 1999.
