EXHIBIT 17.3
STOCKJUNGLE.COM
COMMUNITY INTELLIGENCE FUND
Dear Fellow Shareholders,
We are pleased to report very positive results for the quarter ended March 31,
2000, exceeding even the goals we set for the Fund at the beginning of the year.
Through the end of the quarter, the Fund returned 36.91%, well ahead of both the
S&P 500 Index and the Nasdaq Composite Index, which returned 2.29% and 12.41%,
respectively, for the same period.
The returns were due to the Fund's over-weighting, compared to the benchmark, in
technology, which continued to benefit from the benign economic environment and
the general market rise that began last October 1999.
Looking forward, we notice a few things about the market that could prove
troubling in the future. First, the narrowness of the market; second, excessive
market valuations; and third, the prospect of continued interest rate hikes by
the Fed. In short, some of the economic conditions appear to be changing. To
prepare the Fund, we've decided to maintain a large cash position as a hedge
against declines in the market.
Going forward, we will be continually screening the StockJungle.com community
for new opportunities. The mandate of the Fund is to find growth opportunities
wherever we can within the community, and to date we think we've succeeded.
However, the community has been growing by leaps and bounds and one of our
challenges going forward will be to develop new and innovative ways to screen
the picks for continued growth opportunities. Our philosophy remains consistent:
to pick the best from the community through continual research on the community.
Thank you for your support of StockJungle.com Community Intelligence Fund. We
welcome your comments and look forward to continuing our work with you in the
coming years.
/s/ Michael Petrino /s/ Gordon Gustafson /s/ Akber Zaidi
Michael Petrino Gordon Gustafson Akber Zaidi
Co-Portfolio Manager Co-Portfolio Manager Co-Portfolio Manager
<PAGE>
STOCKJUNGLE.COM
PURE PLAY INTERNET FUND
Dear Fellow Shareholders,
For the quarter ended March 31, 2000, the StockJungle.com Pure Play Internet
Fund was down 4.03%. For the same period, the S&P 500 was up 2.29%. It's been a
tough time this year for Internet companies, which have underperformed
technology companies in general. What we found was that Internet funds that were
able to purchase a more diversified basket of stocks outperformed us, while
those whose mandate was as strict as ours didn't fare as well.
Although technology stocks have been leading the market rally that began at the
end of October 1999, Internet stocks have not been the specific beneficiaries of
the rise. The market has begun to question the valuations of Internet companies.
We expect that many of the weaker companies will begin to disappear, while the
stronger companies with healthy balance sheets will begin to seek acquisition
targets, as well as consolidate.
The goal of the StockJungle.com Pure Play Internet Fund is to find and invest in
what we feel are, or will become, market leading "pure play" companies in the
Internet space. By "pure play" we mean companies that are leading in building
out the Internet, and making it easy and valuable for everyone to use. To this
end, we've divided the Fund into groups of Infrastructure, Content, Commerce and
Software and Services. Looking forward, we think that the Software and Services
and Infrastructure groups will be the ones that will outperform Internet
companies as a whole.
Our buying and selling will be focused on achieving the allocations in these
areas that we think will best position us for the remainder of the year.
/s/ Michael Petrino /s/ Gordon Gustafson /s/ Akber Zaidi
Michael Petrino Gordon Gustafson Akber Zaidi
Co-Portfolio Manager Co-Portfolio Manager Co-Portfolio Manager
2
<PAGE>
STOCKJUNGLE.COM
MARKET LEADERS GROWTH FUND
Dear Fellow Shareholders,
For the quarter ended March 31, 2000, the return generated by the Market Leaders
Growth Fund lagged that of the S&P 500 Index (0.67% versus 2.29%). This
performance deficit was a function of the larger than normal cash position the
Fund carried during the quarter and poor relative performance of
consumer-related holdings like Procter & Gamble, McDonald's and Coca-Cola. On
the plus side of the ledger were our holdings in semiconductor stocks such as
Intel and Texas Instruments.
We ended the quarter with a 13% cash position. This position was consistent with
our concerns about the economic environment, which we believed was
deteriorating. The Federal Reserve (the Fed) was beginning an effort to reduce
inflationary pressures while trying to avoid bringing on a recession. A feat it
has yet to accomplish.
The philosophy behind the Market Leaders Growth Fund is to find and take
positions in market leading companies. These are companies that have been around
for years, who have consistently dominated their competition and who have
positive and growing earnings. They have names that are known worldwide. Indeed,
in the face of ever increasing valuations in the technology sector, there are
already signs of new money seeking out these "safer" names. We don't intend to
undertake any restructuring of the portfolio. Moreover, we have raised our cash
position to approximately 15% of the portfolio and we still await the outcome of
the Fed's attempt to control inflation.
Turnover, for the period ended March 31, 2000, in the fund has been low, as
expected, and we expect it to continue to be low. While all companies can
expect, from time to time, to have difficulties in the market, we expect that
market-leading companies have the resiliency to persevere where more speculative
issues would not only falter, but fail. These companies have seen many different
market environments come and go. We believe that no matter what the future
holds, these companies will be around to celebrate the victories of the
long-term.
/s/ Michael Petrino /s/ Gordon Gustafson /s/ Akber Zaidi
Michael Petrino Gordon Gustafson Akber Zaidi
Co-Portfolio Manager Co-Portfolio Manager Co-Portfolio Manager
3
<PAGE>
STOCKJUNGLE.COM TRUST
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
=============================================================================================================================
STOCKJUNGLE.COM STOCKJUNGLE.COM STOCKJUNGLE.COM
COMMUNITY PURE PLAY MARKET LEADERS
INTELLIGENCE INTERNET GROWTH
FUND FUND FUND
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities:
At acquisition cost ............................................... $ 4,453,791 $ 790,989 $ 409,243
============ ============ ============
At value (Note 2) ................................................. $ 4,455,078 $ 830,830 $ 431,321
Receivable for capital shares sold .................................... 28,599 21,200 1,727
Receivable for investment securities sold ............................. 143,956 160,820 --
Dividends receivable .................................................. 2,372 549 578
Other assets .......................................................... 4,287 2,436 --
------------ ------------ ------------
TOTAL ASSETS ...................................................... 4,634,292 1,015,835 433,626
------------ ------------ ------------
LIABILITIES
Payable for investment securities purchased ........................... 986,328 116,381 --
Payable to affiliates (Note 4) ........................................ 1,242 826 343
------------ ------------ ------------
TOTAL LIABILITIES ................................................. 987,570 117,207 343
------------ ------------ ------------
NET ASSETS ............................................................ $ 3,646,722 $ 898,628 $ 433,283
============ ============ ============
Net assets consist of:
Paid-in capital ................................................... $ 3,587,202 $ 887,677 $ 416,147
Accumulated net investment income (loss) .......................... 999 (484) 555
Accumulated net realized gains (losses) from security
transactions ..................................................... 57,234 (28,406) (5,497)
Net unrealized appreciation on investments ........................ 1,287 39,841 22,078
------------ ------------ ------------
Net assets ............................................................ $ 3,646,722 $ 898,628 $ 433,283
============ ============ ============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) (Note 5) ............... 236,373 72,516 41,350
============ ============ ============
Net asset value, redemption price and offering price
per share (Note 2) ................................................... $ 15.43 $ 12.39 $ 10.48
============ ============ ============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
STOCKJUNGLE.COM TRUST
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED MARCH 31, 2000(A)(UNAUDITED)
<TABLE>
<CAPTION>
==========================================================================================================================
STOCKJUNGLE.COM STOCKJUNGLE.COM STOCKJUNGLE.COM
COMMUNITY PURE PLAY MARKET LEADERS
INTELLIGENCE INTERNET GROWTH
FUND FUND FUND
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividend income ................................................. $ 3,283 $ 1,742 $ 1,769
---------- ---------- ----------
EXPENSES
Investment advisory fees (Note 4) ............................... 2,284 2,226 1,214
---------- ---------- ----------
NET INVESTMENT INCOME (LOSS) ........................................ 999 (484) 555
---------- ---------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) from security transactions .......... 57,234 (28,406) (5,497)
Net change in unrealized appreciation/depreciation on
investments .................................................... 1,287 39,841 22,078
---------- ---------- ----------
NET REALIZED AND UNREALIZED GAINS
ON INVESTMENTS .................................................. 58,521 11,435 16,581
---------- ---------- ----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS ...................................................... $ 59,520 $ 10,951 $ 17,136
========== ========== ==========
</TABLE>
(A) Represents the period from the initial public offering of shares (November
17, 1999) through March 31, 2000 (Note 2).
See accompanying notes to financial statements.
5
<PAGE>
STOCKJUNGLE.COM TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED MARCH 31, 2000(A)(UNAUDITED)
<TABLE>
<CAPTION>
===================================================================================================================
STOCKJUNGLE.COM STOCKJUNGLE.COM STOCKJUNGLE.COM
COMMUNITY PURE PLAY MARKET LEADERS
INTELLIGENCE INTERNET GROWTH
FUND FUND FUND
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) ......................... $ 999 $ (484) $ 555
Net realized gains (losses) from security
transactions ........................................ 57,234 (28,406) (5,497)
Net change in unrealized appreciation/depreciation
on investments....................................... 1,287 39,841 22,078
------------ ------------ ------------
Net increase in net assets from operations ............... 59,520 10,951 17,136
------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Proceeds from shares sold ............................ 3,673,285 983,616 405,873
Payments for shares redeemed ......................... (136,083) (120,939) (14,726)
------------ ------------ ------------
Net increase in net assets from capital share
transactions ............................................ 3,537,202 862,677 391,147
------------ ------------ ------------
TOTAL INCREASE IN NET ASSETS ............................. 3,596,722 873,628 408,283
NET ASSETS
Beginning of period .................................. 50,000 25,000 25,000
------------ ------------ ------------
End of period ........................................ $ 3,646,722 $ 898,628 $ 433,283
============ ============ ============
ACCUMULATED NET INVESTMENT INCOME (LOSS) ................. $ 999 $ (484) $ 555
============ ============ ============
</TABLE>
(A) For the period from the initial public offering of shares (November 17,
1999) through March 31, 2000 (Note 2).
See accompanying notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
STOCKJUNGLE.COM TRUST
FINANCIAL HIGHLIGHTS
=========================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD ENDED MARCH 31, 2000(A) (UNAUDITED)
=========================================================================================================================
STOCKJUNGLE.COM STOCKJUNGLE.COM STOCKJUNGLE.COM
COMMUNITY PURE PLAY MARKET LEADERS
INTELLIGENCE INTERNET GROWTH
FUND FUND FUND
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period .................... $ 10.00 $ 10.00 $ 10.00
------------ ------------ ------------
Income from investment operations:
Net investment income (loss) .......................... -- (0.01) 0.01
Net realized and unrealized gains on investments ...... 5.43 2.40 0.47
------------ ------------ ------------
Total from investment operations .......................... 5.43 2.39 0.48
------------ ------------ ------------
Net asset value at end of period .......................... $ 15.43 $ 12.39 $ 10.48
============ ============ ============
Total return (B) .......................................... 54.30% 23.90% 4.80%
============ ============ ============
Net assets at end of period ............................... $ 3,646,722 $ 898,628 $ 433,283
============ ============ ============
Ratio of net expenses to average net assets (C) ........... 1.00% 1.00% 1.00%
Ratio of net investment income (loss) to average
net assets ............................................... 0.43%(C) (0.22)% 0.45%
Portfolio turnover rate (B) ............................... 86% 62% 8%
</TABLE>
(A) Represents the period from the initial public offering of shares (November
17, 1999) through March 31, 2000 (Note 2).
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
7
<PAGE>
STOCKJUNGLE.COM COMMUNITY INTELLIGENCE FUND
Portfolio of Investments
March 31, 2000
(Unaudited)
================================================================================
MARKET
COMMON STOCKS --- 59.3% SHARES VALUE
--------------------------------------------------------------------------------
($)
BIOTECHNOLOGY --- 2.6%
Amgen, Inc. * 500 30,688
Celera Genomics * 300 27,469
MedImmune, Inc. * 200 34,825
------------
92,982
------------
BROADCAST SERVICES/PROGRAMS --- 0.6%
ACTV, Inc. * 600 21,038
------------
COMMUNICATIONS EQUIPMENT --- 6.0%
Applied Micro Circuits Corporation * 900 135,056
Comverse Technology, Inc. * 200 37,800
Efficient Networks, Inc. * 300 46,725
------------
219,581
------------
COMPUTERS - HARDWARE --- 6.9%
EMC Corporation * 1,200 150,000
SanDisk Corporation * 300 36,750
VERITAS Software Corporation * 500 65,500
------------
252,250
------------
COMPUTERS - INTEGRATED SYSTEMS --- 1.6%
Redback Networks, Inc. * 200 59,987
------------
COMPUTERS - NETWORKING --- 5.9%
Emulex Corporation * 200 21,825
Network Appliance, Inc. * 400 33,100
Sun Microsystems, Inc. * 1,700 159,295
------------
214,220
------------
COMPUTERS - SOFTWARE AND SERVICES --- 12.6%
Breakaway Solutions, Inc. * 400 18,200
Citrix Systems, Inc. * 400 26,500
Intuit, Inc. * 400 21,750
Lycos, Inc. * 300 21,075
Mercury Interactive Corporation * 400 31,700
Oracle Corporation * 2,100 163,931
Rational Software Corporation * 500 38,250
Siebel Systems, Inc. * 900 107,494
Unify Corporation * 400 8,175
Zomax, Inc. * 400 24,100
------------
461,175
------------
ELECTRIC COMPANIES --- 1.0%
Calpine Corporation * 400 37,600
------------
8
<PAGE>
STOCKJUNGLE.COM COMMUNITY INTELLIGENCE FUND
Portfolio of Investments
March 31, 2000
(Unaudited)
================================================================================
MARKET
COMMON STOCKS --- 59.3% SHARES VALUE
--------------------------------------------------------------------------------
($)
ELECTRONICS - SEMICONDUCTORS --- 5.8%
Cree, Inc. * 100 11,288
Cymer, Inc. * 500 25,000
PMC-Sierra, Inc. * 300 61,106
QLogic Corporation * 500 67,750
Sanmina Corporation * 700 47,294
------------
212,438
------------
FIBER OPTICS --- 3.3%
Corning, Inc. 500 97,000
JDS Uniphase Corporation * 200 24,112
------------
121,112
------------
FINANCIAL - DIVERSIFIED --- 0.5%
Chase Manhattan Corporation 200 17,438
------------
HEALTH CARE - DRUGS: MAJOR PHARMACEUTICALS --- 0.8%
Cubist Pharmaceuticals, Inc. * 300 12,562
Pharmacopeia, Inc. * 300 14,700
------------
27,262
------------
INVESTMENT BANKING/BROKERAGE --- 0.6%
Charles Schwab Corporation 400 22,725
------------
MANUFACTURING - DIVERSIFIED --- 0.4%
Flextronics International Ltd. * 200 14,088
------------
RETAIL- FOOD CHAINS --- 0.3%
Safeway, Inc. * 200 9,050
------------
TELECOMMUNICATION - SATELLITE --- 0.6%
Adaptive Broadband Corporation * 400 21,400
------------
TELECOMMUNICATIONS - CELLULAR/WIRELESS --- 9.8%
Motorola, Inc. 900 128,137
Powerwave Technologies, Inc. * 300 37,500
Proxim, Inc. * 200 23,938
QUALCOMM, Inc. * 400 59,725
RF Micro Devices, Inc. * 600 80,625
Tekelec * 200 7,425
Wireless Facilities, Inc. * 200 21,050
------------
358,400
------------
TOTAL COMMON STOCKS --- (COST $2,161,459) 2,162,746
------------
9
<PAGE>
STOCKJUNGLE.COM COMMUNITY INTELLIGENCE FUND
Portfolio of Investments
March 31, 2000
(Unaudited)
================================================================================
MARKET
MONEY MARKET FUNDS --- 62.9% SHARES VALUE
--------------------------------------------------------------------------------
($)
Fifth Third U.S. Treasury Money Market Fund
(Cost $2,292,332) 2,292,332 2,292,332
------------
TOTAL INVESTMENTS AT VALUE --- 122.2%
(COST $4,453,791) 4,455,078
LIABILITIES IN EXCESS OF OTHER ASSETS --- (22.2%) (808,356)
------------
NET ASSETS --- 100.0% 3,646,722
============
* Non-income producing security.
See accompanying notes to financial statements.
10
<PAGE>
STOCKJUNGLE.COM PURE PLAY INTERNET FUND
Portfolio of Investments
March 31, 2000
(Unaudited)
================================================================================
MARKET
COMMON STOCKS --- 87.2% SHARES VALUE
--------------------------------------------------------------------------------
($)
COMPUTERS - DATA SECURITY --- 16.9%
Check Point Software Technologies Ltd. * 300 51,319
Entrust Technologies, Inc. * 500 42,539
VeriSign, Inc. * 200 29,900
VerticalNet, Inc. * 200 27,200
------------
150,958
------------
COMPUTERS - NETWORKING --- 1.2%
Packeteer, Inc. * 300 10,500
------------
COMPUTERS - SOFTWARE AND SERVICES --- 5.4%
America Online, Inc. * 300 20,175
CheckFree Holdings Corporation * 400 28,200
------------
48,375
------------
ELECTRONICS - SEMICONDUCTORS --- 2.7%
Broadcom Corporation - Class A * 100 24,287
------------
FINANCIAL - DIVERSIFIED --- 2.0%
E*Trade Group, Inc. * 600 18,075
------------
INTERNET CONTENT --- 32.0%
About.com, Inc. * 300 26,437
CNET Networks, Inc. * 500 25,344
Critical Path, Inc. * 200 17,000
DoubleClick, Inc. * 300 28,088
InfoSpace, Inc. * 300 43,631
Internet Capital Group, Inc. * 200 18,062
Lifeminders.com, Inc. * 500 33,938
Network Solutions Inc. - Class A * 200 30,741
Rare Medium Group, Inc. * 300 13,238
Yahoo!, Inc. * 300 51,412
------------
287,891
------------
INTERNET SOFTWARE --- 23.2%
At Home Corporation * 200 6,588
BroadVision, Inc. * 500 22,437
Digital River, Inc. * 600 12,900
Exodus Communications, Inc. * 300 42,150
F5 Networks, Inc. * 400 27,100
Inktomi Corporation * 300 58,500
PSINet, Inc. * 300 10,205
RealNetworks, Inc. * 500 28,469
------------
208,349
------------
11
<PAGE>
STOCKJUNGLE.COM PURE PLAY INTERNET FUND
Portfolio of Investments
March 31, 2000
(Unaudited)
================================================================================
MARKET
COMMON STOCKS --- 87.2% SHARES VALUE
--------------------------------------------------------------------------------
($)
MEDICAL INFORMATION SYSTEMS --- 1.3%
Healtheon/WebMD Corporation * 500 11,500
------------
RETAIL - GENERAL MERCHANDISE --- 0.7%
Amazon.com, Inc. * 100 6,700
------------
TELECOMMUNICATIONS - SERVICES --- 1.8%
Copper Mountain Networks, Inc. * 200 16,387
------------
TOTAL COMMON STOCKS --- (COST $743,181) 783,022
------------
================================================================================
MARKET
MONEY MARKET FUNDS --- 5.3% SHARES VALUE
--------------------------------------------------------------------------------
($)
Fifth Third U.S. Treasury Money Market Fund
(Cost $47,808) 47,808 47,808
------------
TOTAL INVESTMENTS AT VALUE --- 92.5%
(COST $790,989) 830,830
OTHER ASSETS IN EXCESS OF LIABILITIES --- 7.5% 67,798
------------
NET ASSETS --- 100.0% 898,628
============
* Non-income producing security.
See accompanying notes to financial statements.
12
<PAGE>
STOCKJUNGLE.COM MARKET LEADERS GROWTH FUND
PORTFOLIO OF INVESTMENTS
March 31, 2000
(Unaudited)
================================================================================
COMMON STOCKS --- 86.6% SHARES MARKET
VALUE
--------------------------------------------------------------------------------
($)
BEVERAGES - ALCOHOLIC --- 2.9%
Anheuser-Busch Companies, Inc. 200 12,450
------------
BEVERAGES - NON ALCOHOLIC --- 2.2%
Coca-Cola Company 200 9,388
------------
BIOTECHNOLOGY --- 3.2%
Biogen, Inc. * 200 13,975
------------
CHEMICALS - DIVERSIFIED --- 2.6%
Dow Chemical Company 100 11,400
------------
COMMUNICATIONS EQUIPMENT --- 1.4%
Lucent Technologies, Inc. 100 6,075
------------
COMPUTERS - HARDWARE --- 3.7%
Dell Computer Corporation * 300 16,181
------------
COMPUTERS - NETWORKING --- 7.9%
Cisco Systems, Inc. * 200 15,463
Sun Microsystems, Inc. * 200 18,741
------------
34,204
------------
COMPUTERS - SOFTWARE AND SERVICES --- 5.6%
America Online, Inc. * 200 13,450
Microsoft Corporation * 100 10,625
------------
24,075
------------
ELECTRONICS - SEMICONDUCTORS --- 9.8%
Intel Corporation 200 26,388
Texas Instruments, Inc. 100 16,000
------------
42,388
------------
FINANCIAL - DIVERSIFIED --- 6.5%
Citigroup, Inc. 200 11,862
Morgan Stanley Dean Witter & Co. 200 16,312
------------
28,174
------------
HEALTH CARE - DRUGS: MAJOR PHARMACEUTICALS --- 2.9%
Merck & Co., Inc. 200 12,425
------------
HEALTH CARE - MEDICAL PRODUCTS AND SUPPLIED --- 3.2%
Johnson & Johnson 200 14,012
------------
13
<PAGE>
STOCKJUNGLE.COM MARKET LEADERS GROWTH FUND
PORTFOLIO OF INVESTMENTS
March 31, 2000
(Unaudited)
================================================================================
COMMON STOCKS --- 86.6% SHARES MARKET
VALUE
--------------------------------------------------------------------------------
($)
INVESTMENT BANKING/BROKERAGE --- 3.0%
J.P. Morgan & Co., Inc. 100 13,175
------------
MANUFACTURING - DIVERSIFIED --- 3.6%
General Electric Company 100 15,519
------------
MULTIMEDIA --- 2.9%
Walt Disney Company 300 12,412
------------
OIL - DOMESTIC INTEGRATED --- 3.6%
Exxon Mobil Corporation 200 15,562
------------
OIL AND GAS - EXPLORATION AND PRODUCTION --- 3.5%
Schlumberger Limited 200 15,300
------------
PERSONAL CARE --- 3.9%
Procter & Gamble Company 300 16,875
------------
RESTAURANTS --- 2.6%
McDonald's Corporation 300 11,269
------------
RETAIL - BUILDING SUPPLIES --- 4.5%
Home Depot, Inc. 300 19,350
------------
RETAIL - SPECIALTY: APPAREL --- 4.5%
Gap, Inc. 400 19,925
------------
TELECOMMUNICATIONS - SERVICES --- 2.6%
AT&T Corporation 200 11,250
------------
TOTAL COMMON STOCKS --- (COST $353,306) 375,384
------------
14
<PAGE>
STOCKJUNGLE.COM MARKET LEADERS GROWTH FUND
PORTFOLIO OF INVESTMENTS
March 31, 2000
(Unaudited)
================================================================================
MARKET
MONEY MARKET FUNDS --- 12.9% SHARES VALUE
--------------------------------------------------------------------------------
($)
Fifth Third U.S. Treasury Money Market Fund 55,937 55,937
(Cost $55,937) ------------
TOTAL INVESTMENTS AT VALUE --- 99.5% (Cost $409,243) 431,321
OTHER ASSETS IN EXCESS OF LIABILITIES --- 0.5% 1,962
------------
NET ASSETS --- 100.0% 433,283
============
* Non-income producing security.
See accompanying notes to financial statements.
15
<PAGE>
STOCKJUNGLE.COM TRUST
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The StockJungle.com Community Intelligence Fund, the StockJungle.com Pure Play
Internet Fund and the StockJungle.com Market Leaders Growth Fund (the "Funds")
are each a diversified series of the StockJungle.com Trust (the Trust), an
open-end management investment company registered under the Investment Company
Act of 1940, as amended. The Trust was organized as a Massachusetts business
trust under a Declaration of Trust dated June 11, 1999. The Trust was
capitalized on October 19, 1999, when the initial shares of each fund were
purchased at $10.00 per share. The public offering of shares of the
StockJungle.com Community Intelligence Fund, the StockJungle.com Pure Play
Internet Fund and the StockJungle.com Market Leaders Growth Fund commenced on
November 17, 1999.
The StockJungle.com Community Intelligence Fund seeks to provide investors with
long-term capital appreciation by investing principally in a diversified
portfolio of the equity securities of U.S. companies with market capitalizations
of no less than $100 million which have demonstrated potential for long-term
growth.
The StockJungle.com Pure Play Internet Fund seeks to provide investors with
long-term capital appreciation by investing in a diversified portfolio of the
equity securities of U.S. Internet companies based on the Adviser's analysis of
their fundamental investment value.
The StockJungle.com Market Leaders Growth Fund seeks to provide investors with
long-term capital appreciation by investing in a diversified portfolio of the
equity securities of U.S. companies that have consistently demonstrated
fundamental investment value and hold strong competitive positions in various
industries.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Funds' significant accounting policies:
Securities valuation -- The Funds' portfolio securities are valued as of the
close of business of the regular session of the New York Stock Exchange
(normally 4:00 p.m., Eastern Time). Securities which are traded over-the-counter
are valued at the last sales price, if available, otherwise, at the last quoted
bid price. Securities traded on a national stock exchange are valued based upon
the closing price on the principal exchange where the security is traded.
Securities for which market quotations are not readily available are valued at
their fair value as determined in good faith in accordance with consistently
applied procedures established by and under the general supervision of the Board
of Trustees.
Share valuation -- The net asset value per share of each Fund is calculated
daily by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding. The offering price and redemption price per share
of each Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Dividend income is recorded on the ex-dividend date.
Dividends arising from net investment income are declared and paid annually to
shareholders of each Fund. Net realized short-term and long-term capital gains,
if any, are distributed at least once each year. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations, which may differ from generally accepted accounting principles.
16
<PAGE>
STOCKJUNGLE.COM TRUST
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Unaudited)
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are determined on a specific identification basis.
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 at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax - It is the Funds' policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Funds' intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
The following information is based upon the federal income tax cost of portfolio
investments as of March 31, 2000:
STOCKJUNGLE.COM STOCKJUNGLE.COM STOCKJUNGLE.COM
COMMUNITY PURE PLAY INTERNET MARKET LEADERS
INTELLIGENCE FUND FUND FUND
----------------- ---- ----
Gross unrealized
appreciation $ 169,786 $ 153,537 $ 55,465
Gross unrealized
depreciation (168,499) (113,696) (33,387)
---------- ---------- ----------
Net unrealized
appreciation $ 1,287 $ 39,841 $ 22,078
========== ========== ==========
Federal income tax
cost of portfolio
investments $4,453,791 $ 790,989 $ 409,243
========== ========== ==========
17
<PAGE>
STOCKJUNGLE.COM TRUST
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Unaudited)
3. INVESTMENT TRANSACTIONS
During the period ended March 31, 2000, the cost of purchases and proceeds from
sales of portfolio securities, other than short-term investments, amounted to
$2,621,195 and $516,971, respectively, for the StockJungle.com Community
Intelligence Fund; $1,039,460 and $267,872, respectively, for the
StockJungle.com Pure Play Internet Fund; and $378,247 and $19,444, respectively,
for the StockJungle.com Market Leaders Growth Fund.
4. TRANSACTIONS WITH AFFILIATES
Certain trustees and officers of the Trust are also officers of StockJungle.com,
Inc. (the Adviser), of Integrated Fund Services, Inc. (IFS), the administrative
services agent, shareholder servicing and transfer agent, and accounting
services agent of the Trust, or of IFS Fund Distributors, Inc., the exclusive
agent for the distribution of the Funds' shares.
INVESTMENT ADVISORY AGREEMENT
The Funds' investments are managed by the Adviser under the terms of an
Investment Advisory Agreement. Under the Investment Advisory Agreement, the
Funds pay the Adviser a fee, which is computed and accrued daily and paid
monthly, at an annual rate of 1.00% of each Fund's average daily net assets.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Agreement with the Trust, IFS supplies
administrative, executive and regulatory services, supervises the preparation of
tax returns, and coordinates the preparation of reports to shareholders and
reports to and filings with the Securities and Exchange Commission and state
securities authorities. For these services, the Adviser pays IFS, on behalf of
each Fund, a monthly fee at the annual rate of .15 % of the average daily net
assets of each Fund, up to $100 million; .10% of such assets from $100 million
to $500 million; .075% of such assets from $500 million to $900 million; and
.05% of such assets in excess of $900 million; subject to a $2,000 monthly
minimum fee.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement with the Trust, IFS maintains the records of each
shareholder's account, answers shareholder inquiries concerning their accounts,
processes purchases and redemptions of each Fund's shares, acts as dividend and
distribution disbursing agent and performs other shareholder service functions.
For theses services, IFS receives a monthly fee paid by the Adviser, on behalf
of each Fund, at an annual rate of $20 per shareholder account, subject to a
$2,000 minimum monthly fee for each Fund. In addition, the Adviser pays IFS
out-of-pocket expenses including, but not limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement with the Trust, IFS
calculates the daily net asset value per share and maintains the financial books
and records of each Fund. For these services, IFS receives a monthly fee paid by
the Adviser of $3,500 on behalf of each of the StockJungle.com Community
Intelligence, the StockJungle.com Pure Play Internet, and the StockJungle.com
Market Leaders Growth Funds. In addition, IFS is reimbursed by the Adviser for
certain out-of-pocket expenses incurred by IFS in obtaining valuations of each
Fund's portfolio securities.
<PAGE>
STOCKJUNGLE.COM TRUST
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Unaudited)
5. FUND SHARE TRANSACTIONS
Proceeds from shares sold and for shares redeemed as shown in the Statements of
Changes in Net Assets are the result of the following capital share transactions
for the period ended March 31, 2000.(A)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
STOCKJUNGLE.COM STOCKJUNGLE.COM STOCKJUNGLE.COM
COMMUNITY INTELLIGENCE PURE PLAY INTERNET MARKET LEADERS GROWTH
FUND FUND FUND
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares sold ........................... 195,077 56,076 17,781
Shares redeemed ....................... (8,704) (8,560) (1,431)
-----------------------------------------------------------------------
Net increase in shares outstanding.... 186,373 47,516 16,350
Shares outstanding, beginning
of period ........................... 50,000 25,000 25,000
-----------------------------------------------------------------------
Shares outstanding, end of period ..... 236,373 72,516 41,350
=======================================================================
</TABLE>
(A) Represents the period from the initial public offering of shares (November
17, 1999) through March 31, 2000.
