THE STOCKJUNGLE.COM COMMUNITY INTELLIGENCE FUND
September 30 2000
Dear Fellow Shareholders,
For the nine-months ended September 30, 2000, the StockJungle.com Community
Intelligence Fund had performance of 36.73%, and a gain since inception
(November 17, 1999) of 54.10%. This compares to the Barra Large-Cap Growth
Index's nine months ended September 30, 2000 return of -6.82%, and gain since
our inception of .81%. The S&P 500's nine months ended September 30, 2000 return
was -2.23%, and its gain since our inception was 1.83%. During the third
quarter, the Fund's NAV rose from $14.92 to $15.41, representing a gain of
3.28%. In contrast, during the third quarter the Indices lost -8.79% and -.97%
respectively.
We think it is useful to compare ourselves to these indices for several reasons.
First, the S&P 500 is the most popular index of comparison, and perhaps the best
(certainly the most common) measure of the broad market. Second, the Community
Intelligence Fund is classified as a large-cap growth fund by Morningstar, and
so should compare well to the large-cap growth index.
Our largest positions as of September 30, 2000 were EMC, Sun Microsystems,
Corning, Siebel Systems, and Mercury Interactive. Our largest economic sector
allocation (according to the S&P sector classifications) remained technology,
though we increased relative weightings in financials and healthcare.
Despite the continued market volatility, and the on-going correction in
technology stocks, the Fund has remained relatively strong. Many of the
technology stocks that we own trade on the Nasdaq, and while many of these
stocks have held up, the Nasdaq itself is down -9.47% year to date, and as of
this writing shows no signs of immediate recovery. With the approaching
presidential election, rising oil prices, and continued worries in the market of
inflation, we expect the recent volatility to continue for the foreseeable
future.
The mission of the Community Intelligence Fund is to achieve good capital
appreciation through the quantitative screening and dissection of information
that we pull from the Community website. We attribute the Fund's good relative
performance so far to our holdings in large, and still quickly growing,
technology companies, which we found and chose to add to the Fund through our
screening process. To date, our process continues to work well. It is our belief
that even if the current engineered slowdown of the economy doesn't produce the
soft landing that investors are hoping for, the difference in relative
performance won't be so large as to justify a wholesale change in the Fund's
direction. The changes happening in the world of technology and biotechnology
are changing the world. Fortunately, these companies are at the forefront of the
StockJungle.com Community.
Sincerely,
Gordon Gustafson Akber Zaidi Portfolio
Manager Portfolio Manager
<PAGE>
COMMUNITY INTELLIGENCE FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
Date Community Intelligence Fund S&P 500 Index NASDAQ
-------- --------------------------- ------------- ------
11/17/99 10,000 10,000 10,000
11/30/99 9,770 9,847 10,204
12/31/99 11,270 10,415 12,447
1/31/00 12,500 9,885 12,052
2/29/00 15,760 9,686 14,366
3/31/00 15,430 10,623 13,635
4/30/00 14,540 10,296 11,809
5/31/00 12,930 10,070 10,402
6/30/00 14,920 10,311 12,052
7/31/00 14,190 10,150 11,447
8/31/00 16,300 10,781 12,782
9/30/00 15,410 10,211 11,161
The Fund's Total Return Since Inception: 54.10%
Past performance is not predictive of future performance.
2
<PAGE>
STOCKJUNGLE.COM COMMUNITY INTELLIGENCE FUND
SCHEDULE OF INVESTMENTS at September 30, 2000
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 92.5% Value
--------------------------------------------------------------------------------
BIOTECHNOLOGY: 8.8%
2,000 Amgen, Inc.* $ 139,656
1,100 Genentech, Inc.* 204,256
800 Millennium Pharmaceuticals, Inc.* 116,850
1,900 PE Corp.-Celera Genomics* 189,288
-----------
650,050
-----------
COMMERCIAL SERVICES: 1.3%
1,800 Paychex, Inc. 94,500
-----------
COMMUNICATIONS EQUIPMENT: 2.5%
1,100 Comverse Technology, Inc.* 118,800
1,800 Efficient Networks, Inc.* 67,162
-----------
185,962
-----------
COMPUTERS: 5.0%
3,700 EMC Corp.* 366,762
-----------
COMPUTERS-MEMORY DEVICES: 2.0%
2,200 SanDisk Corp.* 146,850
-----------
COMPUTERS-NETWORKING: 9.1%
900 Foundry Networks, Inc.* 60,244
800 Juniper Networks, Inc.* 175,150
800 Network Appliance, Inc.* 101,900
2,900 Sun Microsystems, Inc.* 338,575
-----------
675,869
-----------
COMPUTERS-SOFTWARE AND SERVICES: 19.9%
1,200 I2 Technologies, Inc.* 224,475
2,000 Mercury Interactive Corp.* 313,500
3,800 Oracle Corp.* 299,250
3,400 Rational Software Corp.* 235,875
3,600 Siebel Systems, Inc.* 400,725
-----------
1,473,825
-----------
DATA PROCESSING/MANAGEMENT:1.3%
1,400 Automatic Data Processing, Inc. 93,625
-----------
ELECTRONIC COMPONENTS-MISCELLANEOUS: 3.1%
2,400 DSP Group, Inc.* 89,700
2,500 Jabil Circuit, Inc.* 141,875
-----------
231,575
-----------
ELECTRONICS-SEMICONDUCTORS: 6.7%
2,000 KLA-Tencor Corp.* 82,375
800 PMC-Sierra, Inc.* 172,200
2,600 Sanmina Corp.* 243,425
-----------
498,000
-----------
3
<PAGE>
STOCKJUNGLE.COM COMMUNITY INTELLIGENCE FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 - (Continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
FIBER OPTICS: 7.5%
1,200 Corning, Inc. $ 356,400
2,900 Harmonic, Inc.* 69,600
1,400 JDS Uniphase Corp.* 132,562
-----------
558,562
-----------
FINANCIAL SERVICES DIVERSIFIED: 4.3%
1,600 Ambac Financial Group, Inc. 117,200
1,600 Capital One Financial Corp. 112,100
2,500 Schwab (Charles) Corp. 88,750
-----------
318,050
-----------
HEALTH CARE- DRUGS: MAJOR PHARMACEUTICALS: 3.2%
1,800 Abbott Laboratories 85,613
1,700 ALZA Corp.* 147,050
-----------
232,663
-----------
INDEPENDENT POWER PRODUCER: 2.7%
1,900 Calpine Corp.* 198,312
-----------
INSTRUMENTS-SCIENTIFIC: 4.5%
1,500 PE Corp.-PE Biosystems Group 174,750
1,800 Waters Corp.* 160,200
-----------
334,950
-----------
MANUFACTURING-DIVERSIFIED: 1.8%
1,600 Flextronics International Ltd.* 131,400
-----------
RETAIL-DISCOUNT: 0.8%
1,200 Wal-Mart Stores, Inc. 57,750
-----------
RETAIL-FOOD CHAINS: 0.9%
1,500 Safeway, Inc.* 70,031
-----------
TELECOMMUNICATIONS EQUIPMENT: 1.0%
2,000 Plantronics, Inc.* 76,000
-----------
TELECOMMUNICATIONS SERVICES: 0.9%
1,000 Amdocs Ltd.* 62,375
-----------
TELECOMMUNICATIONS-CELLULAR/WIRELESS: 4.0%
4,600 Motorola, Inc. 129,950
3,700 RF Micro Devices, Inc.* 116,088
1,500 Tekelec* 49,313
-----------
295,351
-----------
TELECOMMUNICATIONS-INTEGRATED: 0.6%
1,500 WorldCom, Inc.* 45,563
-----------
TELECOMMUNICATIONS-SATELLITE: 0.6%
2,300 Adaptive Broadband Corp.* 44,850
-----------
4
<PAGE>
STOCKJUNGLE.COM COMMUNITY INTELLIGENCE FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 - (Continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(cost $6,446,336) $ 6,842,875
-----------
UNIT INVESTMENT TRUST: 3.6%
--------------------------------------------------------------------------------
3,000 Nasdaq-100 Shares (cost $273,136) 266,063
-----------
Principal Amount SHORT-TERM INVESTMENTS: 4.9%
--------------------------------------------------------------------------------
$366,096 Fifth Third U.S. Treasury Money Market Fund
(cost $366,096) 366,096
-----------
TOTAL INVESTMENTS IN SECURITIES
(cost $7,085,568+): 101.0% 7,475,034
Liabilities in Excess of Other Assets: -1.0% (74,827)
-----------
NET ASSETS: 100.0% $ 7,400,207
===========
* Non-income producing security.
+ At September 30, 2000, the cost basis of securities for federal income tax
purposes was the same as their cost for financial reporting purposes.
Unrealized appreciation and depreciation of securities were as follows:
Gross unrealized appreciation $ 957,979
Gross unrealized depreciation (568,513)
-----------
Net unrealized appreciation $ 389,466
===========
See accompanying Notes to Financial Statements.
5
<PAGE>
THE STOCKJUNGLE.COM PURE PLAY INTERNET FUND
September 30, 2000
Dear Fellow Shareholders,
For the nine months ended September 30, 2000, the StockJungle.com Pure Play
Internet Fund was down -4.24%, and down -15.10% since inception. This compares
to the two popular Internet indices, the DJINET and the DOT , and the HHH (an
exchange traded Internet fund) as follows: then DJINET was down -28.59% for the
year and -4.47% since our inception; the DOT was down -38.19% for the nine
months ended September 30, 2000 and down -20.92% since our inception; the HHH
was down -42.55% for the nine months, and down -28.06% since our inception on
November 17, 1999.
Overall, we compare well to the general Internet sector as measured by these
benchmarks. However, we have to confess that we are disappointed by the
performance of the sector in general. There has been continued decline in the
stock prices of companies operating in the Internet sector, as the market weeds
out those companies who have no prospect of making money, or are running out of
cash, or whose growth is slowing considerably.
There are, however, good companies which are run by good management teams and
which are continuing to make the Internet a focus of their business.
Unfortunately, the good companies are being taken down with the bad. Companies
with strong cash flows and good growth and earnings are being hurt, companies
like Yahoo! and AOL. Likewise, companies which are continuing to grow, and which
really are near profitability are also being taken down. This is partly due to
the natural weeding out that must occur in any new and revolutionary business
sector where there has been a tremendous amount of new participants in recent
years, and also a general technology correction that has taken place, due to
changes in the overall economic outlook for the near future. To illustrate, the
Nasdaq (where most of the companies we own trade) year to date is down -9.74%.
There have been a few successes in the Fund, and some of our recent additions
are panning out. But the reality is that the Nasdaq continues to remain
volatile, and may very well continue to do so over the near term. So long as the
technology correction continues, and it's showing no sign of abating as long as
there are inflation worries in the market and oil prices remain high, it's
unlikely that the sector will recover in the short term.
However, there are some positives to consider. Now that the IPO market has been
deflated, we can be confident that the companies that will most likely win in
the Internet space are already out there, whether they be pure plays,
established companies, or a combination of the two. We think that our allocation
is broad enough within the sector to benefit from any upswing in the group.
<PAGE>
When the volatility in the market subsides, money will flow back into those
companies that are able to sustain their growth, and whose business models prove
vital to the growth of the Internet in our daily lives. We have to remember that
despite the weakness in the sector, not all the companies are bad. They won't
all disappear. The key remains in finding the best of the group and staying with
them.
We think the Fund is composed of companies that will succeed in the long-term.
We don't know when the market will recover. No one does. When the market turns
around, we want to be in the best companies we can find. The StockJungle.com
Community still provides us a good resource for the selection of Internet
stocks, and we think that the best stocks will come through our screening
process to the benefit of the Fund.
Sincerely,
Gordon Gustafson Akber Zaidi Portfolio
Manager Portfolio Manager
6
<PAGE>
PURE PLAY INTERNET FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
Date Pure Play Internet Fund The Street.com Net Index
-------- ----------------------- ------------------------
11/17/99 10,000 10,000
11/30/99 10,120 10,309
12/31/99 12,910 12,794
1/31/00 11,680 11,660
2/29/00 14,340 12,153
3/31/00 12,390 12,268
4/30/00 9,590 9,920
5/31/00 8,110 8,773
6/30/00 8,230 9,329
7/31/00 8,370 8,049
8/31/00 9,670 9,314
9/30/00 8,490 7,908
The Fund's Total Return Since Inception (11/17/99): -15.10%
Past performance is not predictive of future performance.
7
<PAGE>
STOCKJUNGLE.COM PURE PLAY INTERNET FUND
SCHEDULE OF INVESTMENTS at September 30, 2000
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 96.3% Value
--------------------------------------------------------------------------------
BUSINESS-TO-BUSINESS E-COMMERCE: 8.3%
300 Agile Software Corp.* $ 26,981
200 Ariba, Inc.* 28,653
-----------
55,634
-----------
COMPUTERS-DATA SECURITY: 11.3%
200 Check Point Software Technologies Ltd.* 31,500
215 VeriSign, Inc.* 43,551
-----------
75,051
-----------
COMPUTERS-SOFTWARE AND SERVICES: 8.4%
300 America Online, Inc.* 16,125
100 Brocade Communication Systems, Inc.* 23,600
400 CheckFree Corp.* 16,756
-----------
56,481
-----------
ELECTRONICS-SEMICONDUCTORS: 3.6%
100 Broadcom Corp. Cl. A* 24,375
-----------
ENTERPRISE SOFTWARE: 5.8%
500 BEA Systems, Inc.* 38,937
-----------
FINANCIAL SERVICES DIVERSIFIED: 2.2%
900 E*Trade Group, Inc.* 14,794
-----------
INTERNET APPLICATIONS SOFTWARE: 22.2%
200 Art Technology Group, Inc.* 18,950
800 BroadVision, Inc.* 20,450
700 RealNetworks, Inc.* 27,825
800 Verity, Inc.* 28,550
800 Vignette Corp.* 23,900
300 Vitria Technology, Inc.* 13,988
400 WebTrends Corp.* 14,950
-----------
148,613
-----------
INTERNET CONTENT: 6.8%
600 InfoSpace, Inc.* 18,150
300 Yahoo!, Inc.* 27,300
-----------
45,450
-----------
INTERNET INFRASTRUCTURE SOFTWARE: 8.9%
300 Inktomi Corp.* 34,200
300 TIBCO Software, Inc.* 25,331
-----------
59,531
-----------
INTERNET TELEPHONY: 6.8%
400 Phone.com, Inc.* 45,450
-----------
TELECOMMUNICATIONS SERVICES: 2.3%
400 Copper Mountain Networks, Inc. 15,000
-----------
8
<PAGE>
STOCKJUNGLE.COM PURE PLAY INTERNET FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 - (Continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
WEB HOSTING: 9.7%
400 Critical Path, Inc.* $ 24,300
600 Exodus Communications, Inc.* 29,625
400 NaviSite, Inc.* 10,775
-----------
64,700
-----------
TOTAL COMMON STOCKS
(cost $682,608) 644,016
-----------
Principal Amount SHORT-TERM INVESTMENTS: 3.5%
--------------------------------------------------------------------------------
$23,247 Fifth Third U.S. Treasury Money Market Fund
(cost $23,247) 23,247
-----------
TOTAL INVESTMENTS IN SECURITIES
(cost $705,855+): 99.8% 667,263
Other Assets less Liabilities: 0.2% 1,174
-----------
NET ASSETS: 100.0% $ 668,437
===========
* Non-income producing security.
+ At September 30, 2000, the cost basis of securities for federal income tax
purposes was the same as their cost for financial reporting purposes.
Unrealized appreciation and depreciation of securities were as follows:
Gross unrealized appreciation $ 109,921
Gross unrealized depreciation (148,513)
-----------
Net unrealized depreciation $ (38,592)
===========
See accompanying Notes to Financial Statements.
9
<PAGE>
THE STOCKJUNGLE.COM MARKET LEADERS GROWTH FUND
September 30, 2000,
Dear Shareholders,
For the nine months ended September 30, 2000, the StockJungle.com Market Leaders
Growth Fund's return was -5.28%, versus the S&P 500's return of -2.23% and the
Barra Large-Cap Growth Index's return of -6.82%. Since the Fund's inception on
November 17, 1999, the Fund is down 1.40% , versus 1.83% for the S&P 500 Index
and .81% for the Barra Large-Cap Growth Index.
We think it is useful to compare the Fund's performance to these indices for
several reasons. First, consider that the core strategy of the Market Leader's
Growth Fund is to find, take, and hold positions in companies that the managers
believe have sustainable competitive advantages in their respective industries.
These companies tend to have a long history of growth and success, and therefore
large capitalizations. They also, as market leaders, represent the premier
companies in their respective industries. Since the S&P 500 is certainly the
most popular measure of fund performance, and the broad market (and, therefore,
the economy as a whole) it makes sense to compare the performance of the Fund to
that of the S&P 500. Second, Morningstar classifies the Fund as a large-cap
growth fund, so we need to measure ourselves against a large-cap growth index.
The Fund, nine months ended September 30, 2000 is slightly under performing both
of these indices. We attribute this relative under-performance to the effect of
macroeconomic conditions on the business segments that the Fund is invested in.
Many of the companies that the Fund holds do significant business overseas, and
therefore are subject to foreign exchange rates. The decline of the Euro has had
a material impact on the earnings of several of our companies. Also, the
continued rise of oil prices has caused many of our companies to pay more in
transportation costs. It is our belief that if oil prices remain high, many
companies that we own will continue to suffer. If consumers are paying more for
fuel (gasoline, heating, etc.) then they will spend less consuming goods and
services that our companies produce. To date, there is no indication that oil
prices have hit their peak, nor is there any sign that the exchange rate will
improve in the near term. Since many companies that we own do significant
business globally, we think that they could continue to under perform. However,
we also think that this drawback could be the best advantage that many of our
companies have in the long-term. Despite near term market conditions, it remains
true that the world is becoming more globalized, and the companies that are able
to expand their business overseas have a great advantage over those who don't.
We will continue to remain invested in those companies that we think have the
best chance of succeeding of expanding both locally and globally.
Sincerely,
Gordon Gustafson Akber Zaidi Portfolio
Manager Portfolio Manager
10
<PAGE>
MARKET LEADERS GROWTH FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
Market Leaders Dow Jones
Date Growth Fund S&P 500 Index Industrial Average
-------- ----------- ------------- ------------------
11/17/99 10,000 10,000 10,000
11/30/99 9,940 9,847 9,995
12/31/99 10,410 10,415 10,564
1/31/00 9,870 9,885 10,053
2/29/00 9,630 9,686 9,306
3/31/00 10,480 10,623 10,101
4/30/00 10,240 10,296 9,863
5/31/00 9,830 10,070 9,669
6/30/00 10,120 10,311 9,600
7/31/00 9,870 10,150 9,668
8/31/00 10,590 10,781 10,305
9/30/00 9,860 10,211 9,787
The Fund's Total Return Since Inception (11/17/99): -1.40%
Past performance is not predictive of future performance
11
<PAGE>
STOCKJUNGLE.COM MARKET LEADERS GROWTH FUND
SCHEDULE OF INVESTMENTS at September 30, 2000
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 96.0% Value
--------------------------------------------------------------------------------
BEVERAGES-ALCOHOLIC: 4.6%
600 Anheuser-Busch Co., Inc. $ 25,387
-----------
BEVERAGES-NON ALCOHOLIC: 2.0%
200 The Coca-Cola Co. 11,025
-----------
BIOTECHNOLOGY: 3.3%
300 Biogen, Inc.* 18,300
-----------
COMPUTERS: 12.4%
200 Dell Computer Corp.* 6,163
300 EMC Corp.* 29,738
100 Hewlett-Packard Co. 9,700
200 IBM Corp. 22,500
-----------
68,101
-----------
COMPUTERS-NETWORKING: 8.2%
400 Cisco Systems, Inc.* 22,100
200 Sun Microsystems, Inc.* 23,350
-----------
45,450
-----------
COMPUTERS-SOFTWARE AND SERVICES: 4.4%
400 Microsoft Corp.* 24,100
-----------
COSMETICS & TOILETRIES: 4.9%
400 The Procter & Gamble Co. 26,800
-----------
ELECTRIC-INTEGRATED: 5.1%
600 Reliant Energy, Inc. 27,900
-----------
ELECTRONICS-SEMICONDUCTORS: 8.0%
200 Altera Corp.* 9,550
600 Intel Corp. 24,975
200 Texas Instruments, Inc. 9,438
-----------
43,963
-----------
FINANCIAL SERVICES DIVERSIFIED: 10.8%
400 Citigroup, Inc. 21,625
300 Merrill Lynch & Co., Inc. 19,800
200 Morgan Stanley Dean Witter & Co. 18,288
-----------
59,713
-----------
HEALTH CARE- DRUGS: MAJOR PHARMACEUTICALS: 7.8%
400 Merck & Co., Inc. 29,775
300 Pfizer, Inc. 13,481
-----------
43,256
-----------
12
<PAGE>
STOCKJUNGLE.COM MARKET LEADERS GROWTH FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 - (Continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
HEALTH CARE-MEDICAL PRODUCTS AND SUPPLIES: 5.1%
300 Johnson & Johnson $ 28,181
-----------
MANUFACTURING-DIVERSIFIED: 5.2%
500 General Electric Co. 28,844
-----------
MULTIMEDIA: 1.4%
200 The Walt Disney Co. 7,650
-----------
RESTAURANTS: 1.6%
300 McDonald's Corp. 9,056
-----------
RETAIL-BUILDING SUPPLIES: 1.9%
200 Home Depot, Inc. 10,612
-----------
RETAIL-DISCOUNT: 1.7%
200 Wal-Mart Stores, Inc. 9,625
-----------
TELECOMMUNICATIONS-EQUIPMENT: 2.9%
400 Nokia Corp.-Sponsored ADR (Class A) 15,925
-----------
TELECOMMUNICATIONS-INTEGRATED: 1.1%
200 AT&T Corp. 5,875
-----------
TELEPHONE-INTEGRATED: 3.6%
400 SBC Communications, Inc. 20,000
-----------
TOTAL COMMON STOCKS (cost $523,179) 529,763
-----------
Principal Amount SHORT-TERM INVESTMENTS: 3.8% Value
--------------------------------------------------------------------------------
$20,983 Fifth Third U.S. Treasury Money Market Fund
(cost $20,983) 20,983
TOTAL INVESTMENTS IN SECURITIES
(cost $544,162+): 99.8% 550,746
Other Assets less Liabilities: 0.2% 1,033
-----------
NET ASSETS: 100.0% $ 551,779
===========
* Non-income producing security.
+ At September 30, 2000, the cost basis of securities for federal income tax
purposes was the same as their cost for financial reporting purposes.
Unrealized appreciation and depreciation of securities were as follows:
Gross unrealized appreciation $ 47,386
Gross unrealized depreciation (40,802)
-----------
Net unrealized appreciation $ 6,584
===========
See accompanying Notes to Financial Statements.
13
<PAGE>
StockJungle.com Trust
STATEMENTS OF ASSETS AND LIABILITIES AT SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCKJUNGLE.COM STOCKJUNGLE.COM STOCKJUNGLE.COM
COMMUNITY PURE PLAY MARKET LEADERS
INTELLIGENCE FUND INTERNET FUND GROWTH FUND
----------------- ------------- -----------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $7,085,568, $705,855 and
$544,162, respectively) $ 7,475,034 $ 667,263 $ 550,746
Cash 5,480 1,090 1,079
Receivables:
Dividends and interest 2,875 108 470
Investments securities sold 289,113 22,474 --
Fund shares sold -- 62 10
Other assets -- 3,286 --
----------- ----------- -----------
Total assets 7,772,502 694,283 552,305
----------- ----------- -----------
LIABILITIES
Payables:
Investments securities purchased 365,208 25,263 --
Due to advisor 6,024 583 463
Other 1,063 -- 63
----------- ----------- -----------
Total liabilities 372,295 25,846 526
----------- ----------- -----------
NET ASSETS $ 7,400,207 $ 668,437 $ 551,779
=========== =========== ===========
COMPONENTS OF NET ASSETS
Paid-in capital $ 7,162,565 $ 940,621 $ 564,573
Accumulated net investment income -- -- 1,310
Accumulated net realized loss on investments (151,824) (233,592) (20,688)
Net unrealized appreciation (depreciation)
on investments 389,466 (38,592) 6,584
----------- ----------- -----------
Net assets $ 7,400,207 $ 668,437 $ 551,779
=========== =========== ===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE
($7,400,207/480,340, $668,437/78,768, and
$551,779/55,937 shares outstanding; unlimited
number of shares authorized without par value) $ 15.41 $ 8.49 $ 9.86
=========== =========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE>
StockJungle.com Trust
STATEMENTS OF OPERATIONS - FOR THE PERIOD ENDED SEPTEMBER 30, 2000*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCKJUNGLE.COM STOCKJUNGLE.COM STOCKJUNGLE.COM
COMMUNITY PURE PLAY MARKET LEADERS
INTELLIGENCE FUND INTERNET FUND GROWTH FUND
----------------- ------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividend income $ 4,170 $ -- $ 2,737
Interest income 19,694 3,672 2,424
--------- --------- ---------
Total income 23,864 3,672 5,161
--------- --------- ---------
Expenses:
Advisory fees 25,518 5,956 3,851
--------- --------- ---------
Total expenses 25,518 5,956 3,851
--------- --------- ---------
NET INVESTMENT INCOME (LOSS) (1,654) (2,284) 1,310
--------- --------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments (151,824) (233,592) (20,688)
Net change in unrealized appreciation (depreciation) on
investments 389,466 (38,592) 6,584
--------- --------- ---------
Net realized and unrealized gain (loss) on investments 237,642 (272,184) (14,104)
--------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 235,988 $(274,468) $ (12,794)
========= ========= =========
</TABLE>
* Commenced operations on November 17, 1999.
See accompanying Notes to Financial Statements.
15
<PAGE>
StockJungle.com Trust
STATEMENTS OF CHANGES IN NET ASSETS - FOR THE PERIOD ENDED SEPTEMBER 30, 2000*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCKJUNGLE.COM STOCKJUNGLE.COM STOCKJUNGLE.COM
COMMUNITY PURE PLAY MARKET LEADERS
INTELLIGENCE FUND INTERNET FUND GROWTH FUND
----------------- ------------- -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income (loss) $ (1,654) $ (2,284) $ 1,310
Net realized loss on investments (151,824) (233,592) (20,688)
Net unrealized appreciation (depreciation) on investments 389,466 (38,592) 6,584
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 235,988 (274,468) (12,794)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in
outstanding shares (a) 7,114,219 917,905 539,573
----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS 7,350,207 643,437 526,779
NET ASSETS
Beginning of period 50,000 25,000 25,000
----------- ----------- -----------
END OF PERIOD (including undistributed net investment
income of $0, $0 and $1,310, respectively) $ 7,400,207 $ 668,437 $ 551,779
=========== =========== ===========
</TABLE>
(a) Summary of capital share transactions is as follows:
<TABLE>
<CAPTION>
November 17, 1999* November 17, 1999* November 17, 1999*
through through through
September 30, 2000 September 30, 2000 September 30, 2000
----------------------- ----------------------- --------------------
Shares Value Shares Value Shares Value
-------- ----------- -------- ----------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 504,131 $ 7,551,383 105,402 $ 1,235,291 69,092 $ 698,943
Shares redeemed (28,791) (437,164) (29,134) (317,386) (15,655) (159,370)
-------- ----------- -------- ----------- ------- ---------
Net increase 475,340 $ 7,114,219 76,268 $ 917,905 53,437 $ 539,573
======== =========== ======== =========== ======= =========
</TABLE>
* Commenced operations on November 17, 1999.
See accompanying Notes to Financial Statements.
16
<PAGE>
StockJungle.com Trust
FINANCIAL HIGHLIGHTS for the period ended September 30, 2000* For a capital
share outstanding throughout the period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCKJUNGLE.COM STOCKJUNGLE.COM STOCKJUNGLE.COM
COMMUNITY PURE PLAY MARKET LEADERS
INTELLIGENCE FUND INTERNET FUND GROWTH FUND
----------------- ------------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00
------- ------- -------
Income from investment operations:
Net investment income (loss) (0.00) (0.03) 0.02
Net realized and unrealized gain (loss) on investments 5.41 (1.48) (0.16)
------- ------- -------
Total from investment operations 5.41 (1.51) (0.14)
------- ------- -------
Net asset value, end of period $ 15.41 $ 8.49 $ 9.86
======= ======= =======
Total return++ 54.10% (15.10%) (1.40%)
Ratios/supplemental data:
Net assets, end of period (millions) $ 7.4 $ 0.7 $ 0.6
Ratio of expenses to average net assets+ 0.99% 1.00% 1.00%
Ratio of net investment income (loss) to average net assets+ (0.06%) (0.38%) 0.34%
Portfolio turnover rate++ 217.59% 151.13% 55.37%
</TABLE>
* Commenced operations on November 17, 1999.
+ Annualized.
++ Not annualized.
See accompanying Notes to Financial Statements.
17
<PAGE>
StockJungle.com Trust
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The StockJungle.com Community Intelligence Fund, the StockJungle.com Pure
Play Internet Fund and the StockJungle.com Market Leaders Growth Fund
(collectively the "Funds" and individually a "Fund") are each a diversified
series of the StockJungle.com Trust (the "Trust") which is registered under the
Investment Company Act of 1940 (the "1940 Act") as an open-end management
investment company. 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 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 equity
securities of U.S. Internet companies based on the Advisor'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
equity securities of U.S. companies that have consistently demonstrated
fundamental investment value and hold strong competitive positions in various
industries.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds. These policies are in conformity with generally accepted
accounting principles.
A. SECURITIES VALUATION. Securities traded on a national securities
exchange, or Nasdaq are valued at the last reported sales price at the
close of regular trading on each day the exchanges are open for
trading; securities traded on an exchange or Nasdaq for which there
have been no sales, and other over-the-counter securities, are valued
at the last reported bid price. Securities for which quotations are
not readily available are valued at their respective fair values as
determined in good faith by the Board of Trustees.
U.S. Government securities with less than 60 days remaining to
maturity when acquired by the Fund are valued on an amortized cost
basis. U.S. Government securities with more than 60 days remaining to
maturity are valued at the current StockJungle.com Trust
18
<PAGE>
StockJungle.com Trust
NOTES TO FINANCIAL STATEMENTS, Continued
--------------------------------------------------------------------------------
market value (using the mean between the bid and asked price) until
the 60th day prior to maturity, and are then valued at amortized cost
based upon the value on such date unless the Board of Trustees
determines during such 60 day period that amortized cost basis does
not represent fair value. Short-term investments are stated at cost
which, when combined with accrued interest, approximates market value.
B. FEDERAL INCOME TAXES. The Funds intend to comply with the requirements
of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to their
shareholders. Therefore, no federal income tax provisions are
required.
As of September 30, 2000, the StockJungle.com Community Intelligence
Fund, the StockJungle.com Pure Play Internet Fund and the
StockJungle.com Market Leaders Growth Fund had capital loss
carryforwards for federal income tax purposes of $151,824, $233,592
and $20,688, respectively, none of which expire prior to September 30,
2008. As of September 30, 2000, the StockJungle.com Community
Intelligence Fund and the StockJungle.com Pure Play Internet Fund
reclassified $1,654 and $2,284, respectively, of net investment losses
to paid-in capital on the Statements of Assets and Liabilities. Such
reclassifications, the result of permanent differences between
financial statement and income tax reporting requirements, have no
effect on each Fund's net assets or net asset value per share.
C. SECURITIES TRANSACTIONS, DIVIDEND INCOME AND DISTRIBUTIONS. Securities
transactions are accounted for on the trade date. The cost of
securities sold is determined using the specific identification
method. Dividend income and distributions to shareholders are recorded
on the ex-dividend date.
D. 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 reported
amounts of assets and liabilities at the date of the financial
statements. Actual results could differ from those estimates.
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
StockJungle.com Investment Advisors, Inc. (the "Advisor") provides the
Funds with investment management services under an Investment Advisory
Agreement. The Advisor furnishes all investment advice, office space,
facilities, and most of the personnel needed by the Funds. As compensation for
its services, the Advisor is entitled to a monthly fee at the annual rate of
1.00% of the average daily net assets of the Funds. The agreement with the
Advisor provided that the Advisor would pay all of the expenses of each Fund
through September 30, 2000.
Investment Company Administration, L.L.C. (the "Administrator") acts as the
Funds' administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
19
<PAGE>
StockJungle.com Trust
NOTES TO FINANCIAL STATEMENTS, Continued
--------------------------------------------------------------------------------
the Funds; prepares reports and materials to be supplied to the Board of
Trustees; monitors the activities of the Funds' custodian, transfer agent and
accountant; coordinates the preparation and payment of Fund expenses and reviews
the Funds' expense accruals. For its services, the Administrator receives a
monthly fee from each Fund beginning November 6, 2000 at the following annual
rates, subject to a minimum annual fee of $30,000 per Fund:
Under $50 million 0.20% of average daily net assets
$50 to $100 million 0.15% of average daily net assets
$100 to $150 million 0.10% of average daily net assets
Over $150 million 0.05% of average daily net assets
Subsequent to September 30, 2000, under the terms of a services agreement,
Unified Fund Services, Inc. ("Unified") provides fund accounting and transfer
agent services to the Funds. Prior to utilizing the services of the
Administrator and Unified, administrative, transfer agency and fund accounting
services were provided to the Trust under the terms of corresponding agreements
between the Trust and Integrated Fund Services, Inc.
Effective July 17, 2000, First Fund Distributors, Inc. (the "Distributor")
acts as the Funds' principal underwriter in a continuous public offering of the
Funds' shares. The Distributor is an affiliate of the Administrator.
Certain officers and trustees of the Trust are also officers and/or
directors of the Administrator and the Distributor.
NOTE 4 - PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from the sales of securities, excluding
U.S. Government obligations and short-term investments, for the period ended
September 30, 2000, were $13,098,206 and $6,226,903, respectively, for the
StockJungle.com Community Intelligence Fund, $1,819,247 and $903,047,
respectively, for the StockJungle.com Pure Play Internet Fund and $765,742, and
$221,875, respectively, for the StockJungle.com Market Leaders Growth Fund.
NOTE 5 - REORGANIZATION
On July 18, 2000, the Board of Trustees approved a plan of reorganization
reorganizing the Trust into the Trust for Investment Managers ("TIM"), a
registered investment company, subject to shareholder approval. Each of the
Funds would be organized into a newly formed series of TIM. The Funds would
operate in substantially the same way, pursuant to substantially identical
agreements with its various service providers. The Trust entered into a new
Investment Advisory Agreement with the Advisor on November 7, 2000. Under this
new agreement, the Advisor will no longer pay all operating expenses of the
Fund. But rather, the Funds will bear their own operating expenses. Pursuant
20
<PAGE>
StockJungle.com Trust
NOTES TO FINANCIAL STATEMENTS, Continued
--------------------------------------------------------------------------------
to the new Investment Advisory Agreement, each of the Funds pays the Advisor
monthly an annual investment advisory fee equal to 1.00% of its average daily
net assets. The Advisor has contractually agreed in its Investment Advisory
Agreement to reduce its fees and/or pay expenses of the Funds to ensure that
total Fund operating expenses for each Fund will not exceed 1.45% of average
daily net assets annually for the term of the Agreement.
<PAGE>
Report of Independent Public Accountants
To the Shareholders and Board of Trustees of the StockJungle.com Trust:
We have audited the statements of assets and liabilities, including the
schedules of investments, of the StockJungle.com Pure Play Internet Fund, the
StockJungle.com Market Leaders Growth Fund, and the StockJungle.com Community
Intelligence Fund (the Funds) of the StockJungle.com Trust as of September 30,
2000, and the related statements of operations, changes in net assets and
financial highlights for the period then ended. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of September 30, 2000, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds as of September 30, 2000, the results of their operations, the changes in
their net assets and their financial highlights for the period then ended, in
conformity with accounting principles generally accepted in the United States.
/s/ ARTHUR ANDERSEN LLP
Cincinnati, Ohio
October 27, 2000
21
