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| 2000 |
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| SEMIANNUAL REPORT |
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| April 30, 2000 (Unaudited) |
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| TD Waterhouse Dow 30 Fund |
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TD WATERHOUSE TRUST
BOARD OF TRUSTEES AND EXECUTIVE OFFICERS
<S> <C> <C>
TRUSTEES EXECUTIVE OFFICERS
George F. Staudter Carolyn B. Lewis George A. Rio*
Director of Koger Equity, Inc. President of President, Treasurer
Independent Financial Consultant The CBL Group and Chief Financial Officer
Richard W. Dalrymple Lawrence J. Toal Christopher J. Kelley*
President of Teamwork Mgmt., Inc. Chairman/President/CEO of Vice President and Secretary
Dime Bancorp, Inc.
*Affiliated person of the Distributor
TD WATERHOUSE ASSET MANAGEMENT, INC.
BOARD OF DIRECTORS AND SENIOR OFFICERS
DIRECTORS
Lawrence M. Waterhouse, Jr. Frank J. Petrilli Richard H. Neiman
Chairman Chairman, President and Executive Vice President,
TD Waterhouse Holdings, Inc. Chief Executive Officer General Counsel and Secretary
SENIOR OFFICERS
David A. Hartman B. Kevin Sterns Michele R. Teichner
Senior Vice President Executive Vice President Senior Vice President
Chief Investment Officer Chief Financial Officer & Treasurer Compliance, Operations
& Administration
SERVICE PROVIDERS
INVESTMENT MANAGER TRANSFER AGENT INDEPENDENT AUDITORS
TD Waterhouse Asset Management, Inc. National Investor Services Corp. Ernst & Young LLP
100 Wall Street 55 Water Street 787 Seventh Avenue
New York, NY 10005 New York, NY 10041 New York, NY 10019
ADMINISTRATOR & CUSTODIAN LEGAL COUNSEL
SHAREHOLDER SERVICING The Bank of New York Swidler Berlin Shereff
TD Waterhouse Investor Services, Inc. 100 Church Street Friedman, LLP
100 Wall Street New York, NY 10286 405 Lexington Avenue
New York, NY 10005 New York, NY 10174
Customer Service Department DISTRIBUTOR
1-800-934-4448 Funds Distributor, Inc. INDEPENDENT TRUSTEES COUNSEL
60 State Street Willkie Farr & Gallagher
Boston, MA 02109 153 East 53rd Street
New York, NY 10022
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TD WATERHOUSE DOW 30 FUND
DEAR SHAREHOLDER:
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We are pleased to provide you with the semiannual report for the TD Waterhouse
Dow 30 Fund (the "Fund") for the six month period ended April 30, 2000. Total
net assets were approximately $180 million as of April 30, 2000. Despite
significant volatility in the latter half of this six month period, the Dow
Jones Industrial AverageSM ("DJIA"SM) ended nearly unchanged, starting at 10,730
on October 31, 1999 and finishing at 10,734 on April 30, 2000. The DJIA peaked
at 11,722 in mid-January before hitting a low of 9,796 in early March. Since
this bottom, the DJIA has rebounded but has experienced a substantial degree of
instability, along with other major market indices. On a total return basis,
which includes reinvested dividends, the six month return for the DJIA was
+0.76%. Your Fund had a total return for the same period of +0.60%, after
expenses. Since the investment objective of the Fund is to match the performance
of the DJIA before Fund expenses, we are pleased with these results. As with any
investment, past performance is no guarantee of future results and there is no
guarantee that the Fund's investment objective will be achieved in the future.
We will continue to work diligently seeking to achieve the objective of the Fund
and to provide our shareholders with an investment vehicle designed to closely
emulate the performance of the DJIA.
[GRAPHIC OMITTED]
In the printed version of the document, a line graph appears which depicts
the following plot points:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
3/30/98 4/30/98 5/31/98 6/30/98 7/31/98 8/31/98 9/30/98
Dow 30 Fund $10,000.00 $10,328.48 $10,170.18 $10,245.24 $10,171.23 $ 8,652.88 $ 9,014.46
DIJA Index $10,000.00 $10,324.82 $10,162.94 $10,234.98 $10,161.24 $ 8,646.34 $ 9,008.32
10/31/98 11/30/98 12/31/98 1/31/99 2/28/99 3/31/99 4/30/99
Dow 30 Fund $9,879.56 $10,507.42 $10,594.84 $10,803.44 $10,767.91 $ 11,336.26 $12,500.03
DIJA Index $9,874.30 $10,503.96 $10,592.72 $10,802.14 $10,768.08 $ 11,338.80 $12,505.09
5/31/99 6/30/99 7/31/99 8/31/99 9/30/99 10/31/99 11/30/99
Dow 30 Fund $12,255.08 $12,747.73 $12,384.68 $12,614.08 $12,052.36 $ 12,517.46 $12,709.43
DIJA Index $12,267.22 $12,759.93 $12,399.21 $12,631.30 $12,072.40 $ 12,537.48 $12,734.36
12/31/99 1/31/00 2/29/00 3/31/00 4/30/00
Dow 30 Fund $13,438.66 $12,790.28 $11,857.76 $ 12,804.64 $12,587.58
DIJA Index $13,474.72 $12,827.23 $11,897.54 $ 12,844.39 $12,630.85
</TABLE>
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| Dow 30 Fund Average Annual Total Return as of 4/30/00: |
| One Year: 0.76% |
| Since Inception (3/30/98): 11.72% |
----------------------------------------------------------
Note: Performance data quoted represents past performance. As with all
investments, past performance is no guarantee of future results. The
return is based on a constant investment throughout the period, includes
reinvestment of dividends and reflects a net return to the shareholders
after all expenses, inclusive of fee waivers. Without this waiver, the
Fund's total return would have been lower. The returns shown for the DJIA
reflect the reinvestment of dividends, but do not include any expenses,
since an index has none. It is not possible to invest in an index. The
investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost.
The price performance of each of the DJIA stocks during the six months ended
April 30, 2000 is shown in the chart on the following page. As can be seen in
the chart, there was an unusually wide disparity in performance among the
individual stocks. During the period, Home Depot executed a 3-for-2 stock split.
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3
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Price Price
Appreciation* DJIA Component Appreciation* DJIA Component
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
82.3% Hewlett-Packard Co. -2.6% American Express Co.
-------------------------------------------------------------------------------------------------------------------
64.2% The Walt Disney Co. -7.6% McDonald's Corp.
-------------------------------------------------------------------------------------------------------------------
63.8% Intel Corp. -9.0% Minnesota Mining & Mfg Co.
-------------------------------------------------------------------------------------------------------------------
33.3% General Motors Corp. -12.6% Merck & Co., Inc.
-------------------------------------------------------------------------------------------------------------------
16.0% General Electric Co. -13.2% Philip Morris Cos. Inc.
-------------------------------------------------------------------------------------------------------------------
13.5% Int'l Business Machines Corp. -13.8% The Boeing Co.
-------------------------------------------------------------------------------------------------------------------
11.4% Home Depot Inc. -14.0% SBC Communications Inc.
-------------------------------------------------------------------------------------------------------------------
9.8% Citigroup Inc. -18.9% Eastman Kodak Co.
-------------------------------------------------------------------------------------------------------------------
6.8% Alcoa Inc. -20.2% The Coca-Cola Company
-------------------------------------------------------------------------------------------------------------------
4.9% Exxon Mobil Corp. -21.2% Johnson & Johnson
-------------------------------------------------------------------------------------------------------------------
2.8% United Technologies Corp. -24.6% Microsoft Corp.
-------------------------------------------------------------------------------------------------------------------
-0.1% AT&T Corp. -26.4% E.I. du Pont de Nemours and Co.
-------------------------------------------------------------------------------------------------------------------
-1.6% Honeywell International -28.6% Caterpillar Inc.
-------------------------------------------------------------------------------------------------------------------
-1.9% J.P. Morgan & Co., Inc. -30.2% International Paper Co.
-------------------------------------------------------------------------------------------------------------------
-2.3% Wal-Mart Stores, Inc. -43.1% The Proctor & Gamble Co.
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</TABLE>
(C) 2000 Dow Jones & Company
Notes: *Percentages reflect each stock's price appreciation only. They do not
include reinvested dividends. The stocks are listed from the best
performer to the worst over the most recent six month period.
Performance quoted represents past performance and is not a guarantee of
future results.
The U.S. stock market's performance over the Fund's most recent semiannual
period was marked by strong volatility. Investor sentiment was influenced by the
debate on "New Economy" versus "Old Economy" stocks as well as a renewed focus
on stock valuations relative to companies' earnings. Another critical factor
influencing the market was continued worry about rising interest rates resulting
from the Federal Reserve Open Market Committee's ("Federal Reserve") attempt to
prevent the rise of inflation from an overheating domestic economy. While the
U.S. economy expanded at a strong pace over the last two calendar quarters,
growing at annualized rates of 7.3% and 5.4% respectively, the continuation of
this exceptionally strong growth may be doubtful in the face of continued
interest rate hikes. The impact of the Federal Reserve's interest rate increases
on corporate earnings, stock prices, economic growth and inflation are uncertain
at this point in time.
Looking forward to the next twelve months, the market's direction will likely be
primarily affected by interest rates, inflationary trends, corporate profits,
and money investment flows. In light of today's economic and market
environments, we believe the overall quality and underlying financial strength
of the companies comprising the DJIA can provide a solid investment foundation
for our shareholders' investments in the Fund.
We welcome additional investments into the Fund, and provide a number of
attractive ways to invest or add to current positions. The minimum initial
investment is $1,000 and $100 for subsequent purchases, although these minimums
may be waived for existing customers of TD Waterhouse Investor Services, Inc.
("TD Waterhouse"). For TD Waterhouse IRA accounts, there are no minimum or
subsequent investment requirements. A periodic investment plan is also available
which requires a minimum investment of $100 monthly or $300 quarterly. Keep in
mind, however, that periodic investing neither guarantees a profit nor protects
against a loss in a declining market. You may contact TD Waterhouse's mutual
funds service department at 1-800-457-6516 or your local branch office for more
information.
Sincerely,
/s/Frank J. Petrilli
Frank J. Petrilli
President and Chief Operating Officer
TD Waterhouse Group, Inc.
June 8, 2000
An investment in the Fund is neither FDIC-insured nor guaranteed by the U. S.
Government and is not a deposit or obligation guaranteed by any bank and is
subject to investment risk, including possible loss of the principal amount
invested.
Distributor: Funds Distributor, Inc.
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TABLE OF CONTENTS
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Schedule of Investments 6
Statement of Assets and Liabilities 7
Statement of Operations 8
Statement of Changes in Net Assets 9
Financial Highlights 10
Notes to Financial Statements 11
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TD WATERHOUSE DOW 30 FUND
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
NUMBER OF
SHARES VALUE
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COMMON STOCKS
Alcoa Inc. 82,877 $ 5,376,645
American Express Co. 82,877 12,436,730
AT&T Corp. 82,877 3,869,320
The Boeing Co. 82,877 3,289,181
Caterpillar Inc. 82,877 3,268,462
Citigroup Inc. 82,877 4,926,002
The Coca-Cola Company 82,877 3,900,399
E.I. du Pont de Nemours and Co. 82,877 3,931,478
Eastman Kodak Co. 82,877 4,635,932
Exxon Mobil Corp. 82,877 6,438,507
General Electric Co. 82,877 13,032,408
General Motors Corp. 82,877 7,759,359
Hewlett-Packard Co. 82,877 11,188,395
Home Depot Inc. 82,877 4,646,292
Honeywell International 82,877 4,641,112
Intel Corp. 82,877 10,509,839
International Business Machines Corp. 82,877 9,251,145
International Paper Co. 82,877 3,045,730
J.P. Morgan & Co., Inc. 82,877 10,639,335
Johnson & Johnson 82,877 6,837,352
McDonald's Corp. 82,877 3,159,686
Merck & Co., Inc. 82,877 5,759,952
Microsoft Corp.(A) 82,877 5,780,671
Minnesota Mining & Manufacturing Co. 82,877 7,168,861
Philip Morris Cos. Inc. 82,877 1,812,934
The Proctor & Gamble Co. 82,877 4,941,541
SBC Communications Inc. 82,877 3,631,049
United Technologies Corp. 82,877 5,153,913
Wal-Mart Stores, Inc. 82,877 4,589,314
The Walt Disney Co. 82,877 3,589,610
-----------
TOTAL COMMON STOCKS (cost $165,277,189)--99.5% 179,211,153
-----------
OTHER (cost $1,323,971)--0.8%
DiamondsSM Trust, Series 1 12,558 1,349,200
-----------
TOTAL INVESTMENTS (cost $166,601,160)--100.3% 180,560,353
OTHER ASSETS AND LIABILITIES, NET--(0.3%) (453,135)
-----------
NET ASSETS--100.0% $180,107,218
============
(A) Non-income producing security
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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TD WATERHOUSE DOW 30 FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<S> <C>
ASSETS
Investments in securities, at value (cost $166,601,160) $180,560,353
Dividends receivable 113,731
Receivable for capital shares sold 187,180
Receivable for investment securities sold 632,577
Receivable from Investment Manager & affiliates (Note 3) 29,936
Other assets 2,058
-------------
TOTAL ASSETS 181,525,835
LIABILITIES
Bank overdraft 1,052,331
Payable for investment securities purchased 1,842
Payable for capital shares redeemed 322,274
Other accrued expenses 42,170
-------------
TOTAL LIABILITIES 1,418,617
-------------
NET ASSETS $180,107,218
=============
Net assets consist of:
Paid-in capital $163,270,202
Undistributed net investment income 322
Accumulated net realized gains from security transactions 2,877,501
Net unrealized appreciation on investments 13,959,193
-------------
Net assets, at value $180,107,218
=============
Shares of beneficial interest outstanding 16,784,519
=============
Net asset value, redemption price and offering price per share (Note 2) $ 10.73
=============
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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TD WATERHOUSE DOW 30 FUND
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2000
(Unaudited)
<S> <C>
INVESTMENT INCOME
Dividend income $ 1,305,340
Interest income 4,026
------------
TOTAL INVESTMENT INCOME 1,309,366
------------
EXPENSES
Shareholder servicing fees (Note 3) 226,376
Investment management fees (Note 3) 181,100
Transfer agent fees (Note 3) 45,276
Shareholder reports and mailing 71,077
Custody fees (Note 2) 39,113
Registration fees 35,193
Trustees' fees and expenses 14,667
Professional fees 12,808
Other expenses 12,352
------------
TOTAL EXPENSES 637,962
Fees waived/expenses reimbursed by the Investment Manager
and its affiliates (Note 3) (411,589)
------------
NET EXPENSES 226,373
------------
NET INVESTMENT INCOME 1,082,993
------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 3,460,090
Net change in unrealized appreciation/depreciation on investments (3,185,406)
------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 274,684
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,357,677
============
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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TD WATERHOUSE DOW 30 FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended Year
April 30, Ended
2000 October 31,
(Unaudited) 1999
<S> <C> <C>
OPERATIONS:
Net investment income $ 1,082,993 $ 1,622,456
Net realized gains from security transactions 3,460,090 2,545,555
Net change in unrealized appreciation/depreciation on investments (3,185,406) 17,310,316
-------------- -------------
Net increase in net assets from operations 1,357,677 21,478,327
-------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (1,082,671) (1,622,456)
From net realized gains on security transactions (3,057,262) --
In excess of net investment income -- (2,724)
-------------- -------------
Total distributions to shareholders (4,139,933) (1,625,180)
-------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 69,667,666 155,677,326
Shares issued in reinvestment of dividends 4,139,933 1,625,180
Payments for shares redeemed (66,229,570) (64,055,262)
-------------- -------------
Net increase in net assets from capital share transactions 7,578,029 93,247,244
-------------- -------------
TOTAL INCREASE IN NET ASSETS 4,795,773 113,100,391
NET ASSETS:
Beginning of period 175,311,445 62,211,054
-------------- -------------
End of period $180,107,218 $175,311,445
============== =============
Undistributed net investment income $ 322 $ --
============== =============
CAPITAL STOCK TRANSACTIONS:
Shares sold 6,431,732 15,233,177
Shares issued for dividends reinvested 382,177 159,759
Shares redeemed (6,370,240) (6,294,226)
-------------- -------------
Net increase in shares outstanding 443,669 9,098,710
============== =============
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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TD WATERHOUSE DOW 30 FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of beneficial interest outstanding, total investment
return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from
the Fund's financial statements.
Six Months
Ended Year Period
April 30, Ended Ended
2000 October 31, October 31,
(Unaudited) 1999 1998*
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 10.73 $ 8.59 $ 8.78
-------------- ----------------- --------------
INVESTMENT OPERATIONS
Net investment income 0.06 0.14 0.08
Net realized and unrealized gains (losses)
on investments 0.19 2.14 (0.19)
-------------- ----------------- --------------
TOTAL FROM INVESTMENT OPERATIONS 0.25 2.28 (0.11)
-------------- ----------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income (0.06) (0.14) (0.08)
Distributions from capital gains (0.19) -- --
-------------- ----------------- --------------
TOTAL DISTRIBUTIONS (0.25) (0.14) (0.08)
Net asset value, end of period $ 10.73 $ 10.73 $ 8.59
============== ================= ==============
RATIOS
Ratio of net expenses to average net assets 0.25%(A) 0.25% 0.25%(A)
Ratio of net investment income to
average net assets 1.20%(A) 1.37% 1.48%(A)
Decrease reflected in above expense ratio
due to waivers/reimbursements by the
Investment Manager and its affiliates (Note 3) 0.46%(A) 0.43% 0.55%(A)
SUPPLEMENTAL DATA
Portfolio turnover rate 26%(A) 47% 8%(A)
Total investment return 0.60%(B) 26.72%(B) (1.19%)(B)
Net assets, end of period $ 180,107,218 $ 175,311,445 $ 62,211,054
=============== ================= ==============
Average net assets $ 181,954,112 $ 118,399,466 $ 28,460,853
=============== ================= ==============
<FN>
* The Fund commenced operations on March 31, 1998.
(A) Annualized.
(B) Total investment return is calculated assuming a purchase of shares on the
first day and a sale on the last day of the period reported and includes
reinvestment of dividends.
</FN>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
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TD WATERHOUSE DOW 30 FUND
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
NOTE 1 -- ORGANIZATION
TD Waterhouse Trust (the "Trust") was organized as a Delaware business trust on
August 6, 1999. The Trust is registered as an open-end management investment
company with the Securities and Exchange Commission under the Investment Company
Act of 1940, as amended (the "Act"). Shares of beneficial interest of the Trust
are registered under the Securities Act of 1933, as amended. The investment
objective of the Fund is to seek to track the total return of the Dow Jones
Industrial Average before Fund expenses. The Fund commenced operations on March
31, 1998 and became part of the Trust on November 5, 1999. It is a
non-diversified portfolio.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Fund's significant accounting policies:
Share Valuation -- The net asset value per share of the 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
are equal to the net asset value per share.
Securities Valuation -- The Fund's 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.
Repurchase Agreements -- The Fund may enter into repurchase agreements with
financial institutions, deemed to be creditworthy by the Fund's Investment
Manager, subject to the seller's agreement to repurchase and the Fund's
agreement to resell such securities at a mutually agreed upon price. Securities
purchased subject to repurchase agreements are deposited with the Fund's
custodian and, pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If the value of the underlying securities falls
below the value of the repurchase price plus accrued interest, the Fund will
require the seller to deposit additional collateral by the next business day. If
the request for additional collateral is not met, or the seller defaults on its
repurchase obligation, the Fund maintains the right to sell the underlying
securities at market value and may claim any resulting loss against the seller.
Investment Income -- Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date. Under the terms of the custody agreement, the
Fund receives net earnings credits based on available cash balances left on
deposit. Income earned under this arrangement is included in interest income.
Distributions to Shareholders -- Dividends arising from net investment income,
if any, are declared daily and paid monthly. Net realized short-term capital
gains, if any, may be distributed during the year and net realized 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.
Securities Transactions -- Securities transactions are accounted for on the
trade date. Realized gain and loss from securities transactions are recorded on
a specific identification basis.
Expenses -- Expenses directly attributable to the Fund are charged to the Fund's
operations.
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11
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TD WATERHOUSE DOW 30 FUND
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
(CONTINUED)
Use of Estimates -- The Fund's financial statements are prepared in accordance
with generally accepted accounting principles, which may require the use of
management estimates and assumptions. Actual results could differ from these
estimates.
Federal Income Taxes -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which the Fund so
qualifies, and distributes at least 90% of its taxable net income, the Fund (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 Fund's 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.
NOTE 3 -- INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
OF THE INVESTMENT MANAGER
Under the terms of an Investment Management Agreement with TD Waterhouse Asset
Management, Inc. (the "Investment Manager"), a majority-owned subsidiary of The
Toronto-Dominion Bank, for the investment management services furnished to the
Fund, the Fund pays the Investment Manager an annual investment management fee,
equal to .20 of 1% of the average daily net assets of the Fund. The Investment
Manager currently anticipates that it will limit the Fund's overall expense
ratio to no more than 0.25% on an annual basis; however, effective January 1,
2000 the investment manager may limit expenses on an annual basis to no more
than 0.45%. All expense limitations are voluntary. For the six months ended
April 30, 2000, the Investment Manager voluntarily waived $164,636 of its
investment management fee.
TD Waterhouse Investor Securities, Inc. ("TD Waterhouse"), an affiliate of the
Investment Manager, has been retained under an Administration Agreement to
perform certain administrative services for the Fund. For the administrative
services rendered to the Fund, the Investment Manager (not the Fund) pays TD
Waterhouse a monthly fee at an annual rate of .10 of 1% of the Fund's average
daily net assets.
TD Waterhouse has been retained under a Shareholder Services Agreement to
perform certain shareholder services necessary for the operation of the Fund.
The shareholder service plan adopted by the Fund provides that the Fund pay TD
Waterhouse, a monthly fee at an annual rate of up to .25 of 1% of average daily
net assets. For the six months ended April 30, 2000, TD Waterhouse voluntarily
waived $205,795 of its shareholder servicing fee for the Fund.
The Fund has entered into a Transfer Agency and Dividend Disbursing Agency
Agreement with National Investor Services Corp. (the "Transfer Agent"), an
affiliate of the Investment Manager, to perform transfer and dividend disbursing
agency-related services. For such services, the Fund pays the Transfer Agent a
monthly fee at an annual rate of .05 of 1% of average daily net assets. For the
six months ended April 30, 2000, the Transfer Agent voluntarily waived $41,159
of its transfer agent fee for the Fund.
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12
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TD WATERHOUSE DOW 30 FUND
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
(CONTINUED)
Each Trustee who is not an "interested person" ("independent Trustee") as
defined in the Act, who serves on the Board of Trustees of one or more
portfolios in the "Fund Complex" (which includes the Trust, TD Waterhouse Family
of Funds, Inc. and National Investors Cash Management Fund, Inc.) receives:
1. a base annual retainer of $12,000, payable quarterly;
2. a supplemental annual retainer of $5,000, if serving on the Board of
Trustees/Directors of more than one company in the Fund Complex, and
3. a meeting fee of $2,000 for each meeting attended.
Compensation is allocated between the companies and among the respective
portfolios.
The Fund placed all of its portfolio transactions with TD Waterhouse. There were
no commissions paid to TD Waterhouse for the six months ended April 30, 2000.
NOTE 4 - INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investment securities, other
than short-term investments, amounted to $27,975,743 and $23,214,327
respectively, for the six months ended April 30, 2000.
The cost of portfolio investments for Federal income tax purposes was
$166,601,160 as of April 30, 2000. Accordingly, net unrealized appreciation for
Federal income tax purposes aggregated $13,959,193, consisting of $29,159,523
gross unrealized appreciation and $15,200,330 gross unrealized depreciation.
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| This report has been prepared for shareholders and may be distributed |
| to others only if preceded or accompanied by a current prospectus. |
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Call, click, go wireless, or just come in today!
1-800-934-4448
PC: tdwaterhouse.com o AOL Keyword: TD Waterhouse o WIRELESS: wtdw.com
170 outlets nationwide, in all 50 states
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A LEADING ONLINE FINANCIAL SERVICES FIRM
AND THE WORLD'S 2ND LARGEST DISCOUNT BROKER
