SEMI-ANNUAL REPORT
[LOGO]
NASDAQ 100 INDEX FUND
------------------------
MAY 31, 2000 (Unaudited)
The Securities and Exchange Commission
has not approved or disapproved these [LOGO]
securities or passed upon the adequacy of
this prospectus. Any representation to RANSON & ASSOCIATES, INC.
the contrary is a criminal offense.
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[LOGO]
NASDAQ 100 INDEX FUND
SEMI-ANNUAL REPORT
Dear Shareholders,
The first six months of this year have been a challenge for the U.S. equity
market. An overheating economy and inflation fears caused the Federal Reserve
to raise interest rates on numerous occasions, and the uncertainty of further
Fed interest rate hikes reverberated through the stock market. Even though we
saw a dramatic pullback from its high, the Nasdaq-100 Indexr still achieved a
slight gain through the end of June.
Many now feel the Federal Reserve has engineered a "soft landing" for the
economy while taming inflation fears. This we believe should bode well for
earnings and the market overall, and in particular the growth dominated
companies that makeup the Nasdaq 100 Index Fund.
Thank you for being a Nasdaq 100 Index Fund shareholder. As Fund manager, we at
Ranson & Associates, Inc. strive to provide you with the best service possible
to keep you a satisfied shareholder.
Sincerely,
/s/ Alex R. Meitzner
----------------------------
Alex R. Meitzner
Fund Manager and
Chairman of the Board
The Nasdaq-100 Indexr and Nasdaqr are registered marks of The Nasdaq Stock
Market, Inc. (which with its affiliates are the Corporations) and are licensed
for use by Ranson & Associates, Inc. The fund has not been passed on by the
Corporations as to its legality or suitability. The fund is not sponsored,
endorsed, sold, promoted by, nor affiliated with, the Corporations. THE
CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
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<TABLE>
<CAPTION>
EAGLE FUNDS
NASDAQ 100 INDEX FUND
SCHEDULE OF INVESTMENTS
MAY 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS 97.21%
3,300 Intel Corp. $ 411,469
7,000 Cisco Systems, Inc.* 398,562
5,100 Microsoft Corp.* 319,069
3,400 Oracle Corp.* 244,375
1,900 JDS Uniphase Corp.* 167,200
2,400 QUALCOMM, Inc.* 159,300
2,000 Sun Microsystems, Inc.* 153,250
1,100 VERITAS Software Corp.* 128,150
1,300 Nextel Communications, Inc. - Class A* 120,412
2,700 Dell Computer Corp.* 116,437
2,900 WorldCom, Inc.* 109,112
1,100 Applied Materials, Inc.* 91,850
1,200 Xilinx, Inc.* 91,350
1,400 Amgen, Inc.* 89,075
700 Yahoo!, Inc.* 79,144
500 PMC-Sierra, Inc.* 76,625
1,100 ADC Telecommunications, Inc.* 73,906
1,200 Linear Technology Corp. 70,875
600 Siebel Systems, Inc.* 70,200
1,100 Maxim Integrated Products, Inc.* 69,781
800 Altera Corp.* 68,700
2,500 Global Crossing Ltd.* 62,656
500 CIENA Corp.* 59,844
900 Network Appliance, Inc.* 58,106
500 VoiceStream Wireless Corp.* 57,250
2,700 Ericsson (LM) Telephone - ADR* 55,350
700 Level 3 Communications, Inc.* 53,419
500 i2 Technologies, Inc.* 53,187
600 Apple Computer, Inc.* 50,400
1,900 Immunex Corp.* 49,162
1,500 Metromedia Fiber Network, Inc.* 46,406
500 Comverse Technology, Inc.* 45,687
700 Tellabs, Inc.* 45,456
1,200 Comcast Corp. - Class A* 45,450
200 SDL, Inc.* 45,312
400 Applied Micro Circuits Corp.* 39,700
800 CMGI, Inc.* 38,250
600 eBay, Inc.* 37,537
Nasdaq 100 Index Fund 1
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<CAPTION>
EAGLE FUNDS
NASDAQ 100 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
------------------------------------------------------------------------------
<S> <C> <C> <C>
1,050 Paychex, Inc. $ 36,750
300 Adobe Systems, Inc. 33,769
600 Citrix Systems, Inc.* 31,575
300 RF Micro Devices, Inc.* 31,500
200 MedImmune, Inc.* 31,075
600 KLA-Tencor Corp.* 29,737
200 Network Solutions, Inc.* 29,562
600 Amazon.com, Inc.* 28,987
800 BroadVision, Inc.* 28,650
700 EchoStar Communications Corp. - Class A* 27,956
500 Biogen, Inc.* 27,250
600 PanAmSat Corp.* 26,625
700 Chiron Corp.* 26,556
600 Cintas Corp. 26,400
700 Conexant Systems, Inc.* 26,337
1,300 McLeodUSA, Inc.* 26,000
600 Gemstar International Group Ltd.* 25,463
400 Sanmina Corp.* 25,450
700 Intuit, Inc.* 25,375
500 Vitesse Semiconductor Corp.* 25,313
700 American Power Conversion Corp.* 24,806
400 Lycos, Inc.* 24,200
700 Starbucks Corp.* 23,800
400 NTL, Inc.* 23,655
700 Costco Wholesale Corp. 22,356
500 BMC Software, Inc.* 22,000
300 NEXTLINK Communications, Inc. - Class A* 21,019
500 3COM Corp.* 20,906
500 Atmel Corp.* 19,094
1,000 USA Networks, Inc.* 18,938
400 Fiserv, Inc.* 18,700
500 Bed Bath & Beyond, Inc.* 18,406
300 Genzyme Corp.* 17,044
700 Concord EFS, Inc.* 16,975
800 At Home Corp.* 14,800
300 Molex, Inc. 14,644
400 RealNetworks, Inc.* 14,525
400 Biomet, Inc. 14,425
1,000 PeopleSoft, Inc.* 13,813
900 Staples, Inc.* 13,275
200 Electronic Arts, Inc.* 12,775
2 Nasdaq 100 Index Fund
<PAGE>
<CAPTION>
EAGLE FUNDS
NASDAQ 100 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
------------------------------------------------------------------------------
<S> <C> <C> <C>
300 Adelphia Communications Corp.* $ 12,713
200 Dollar Tree Stores, Inc.* 11,900
200 Microchip Technology, Inc.* 11,353
1,000 Parametric Technology Corp.* 10,625
300 CNET Networks, Inc.* 10,331
300 Sigma-Aldrich Corp. 10,013
200 QLogic Corp.* 9,825
200 Synopsys, Inc.* 9,463
1,100 Novell, Inc.* 9,144
400 Network Associates, Inc.* 8,750
600 Smurfit-Stone Container Corp.* 8,513
200 PACCAR, Inc. 8,375
100 PacifiCare Health Systems, Inc.* 6,481
600 Compuware Corp.* 6,113
400 Quintiles Transnational Corp.* 5,900
200 Apollo Group, Inc.* 5,813
200 Northwest Airlines Corp.* 5,688
200 Miller (Herman), Inc. 5,400
200 Adaptec, Inc.* 3,938
200 VISX, Inc.* 3,938
300 Legato Systems, Inc.* 3,263
----------
Total Common Stocks 5,080,039
(cost $5,982,153) ----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS 0.31%
$16,325 Bank of New York
Money Market Fiduciary 16,325
----------
Total Short-Term Investments 16,325
(cost $16,325) ----------
TOTAL INVESTMENTS 97.52% 5,096,364
(cost $5,998,478)
Other Assets less Liabilities 2.48% 129,646
----------
NET ASSETS 100.00% $5,226,010
==========
Nasdaq 100 Index Fund 3
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<CAPTION>
EAGLE FUNDS
NASDAQ 100 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
The Nasdaq 100 Index Fund's investment concentration based on net assets
by industry, as of May 31, 2000 was as follows:
<S> <C>
Telecommunications 24.07%
Computers 22.65
Software 16.79
Semi-conductor 16.55
Electronics 5.12
Biotechnology 4.60
Retail/E-Commerce 3.09
Other 2.79
Commercial Services 1.76
Media 1.48
Healthcare 0.48
Industrials 0.32
Basic Materials 0.19
Transportation 0.11
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TOTAL 100.00%
=======
[GRAPH]
Graph of Table Above
<FN>
* Non-income producing
See notes to financial statements.
</TABLE>
4 Nasdaq 100 Index Fund
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<TABLE>
<CAPTION>
EAGLE FUNDS
NASDAQ 100 INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2000 (UNAUDITED)
<S> <C>
ASSETS:
Investments, at value (cost $5,998,478) $5,096,364
Receivable for fund shares sold 110,765
Interest and dividends receivable 441
Prepaid expenses and other assets 51,502
----------
Total Assets 5,259,072
----------
LIABILITIES:
Payable to investment adviser 7,416
Accrued distribution fees 2,515
Accrued investment advisory fees 2,114
Other accrued expenses 21,017
----------
Total Liabilities 33,062
----------
NET ASSETS $5,226,010
==========
NET ASSETS CONSIST OF:
Capital stock $6,128,124
Net unrealized depreciation on investments (902,114)
----------
Net Assets $5,226,010
==========
CLASS A SHARES:
Net assets $2,813,183
Shares outstanding (no par value, unlimited shares authorized) 275,457
Net asset value and redemption price (net assets/shares outstanding) $ 10.21
==========
Maximum offering price (net asset value, plus 2.56% of net asset
value or 2.50% of offering price) $ 10.47
==========
CLASS C SHARES:
Net assets $2,412,827
Shares outstanding (no par value, unlimited shares authorized) 239,826
Net asset value, redemption price and offering price per share
(net assets/shares outstanding) $ 10.06
==========
<FN>
See notes to financial statements.
</TABLE>
Nasdaq 100 Index Fund 5
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<TABLE>
<CAPTION>
EAGLE FUNDS
NASDAQ 100 INDEX FUND
STATEMENT OF OPERATIONS
PERIOD ENDED MAY 31, 2000(1)
(UNAUDITED)
<S> <C>
INVESTMENT INCOME:
Interest $ 2,440
Dividends 519
----------
Total Investment Income 2,959
----------
EXPENSES:
Fund accounting and administration fees 26,220
Custody fees 22,561
Transfer agent fees and expenses 15,908
Professional fees 9,940
Federal and state registration fees 8,834
Distribution fees 7,502
Investment advisory fees 6,487
Trustees' fees and expenses 2,363
Miscellaneous 17,638
----------
Total expenses before waiver and reimbursement of expenses 117,453
Less: Waiver and reimbursement of expenses (90,483)
----------
Net Expenses 26,970
----------
NET INVESTMENT LOSS (24,011)
----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments 389
Net change in unrealized appreciation and depreciation on investments (902,114)
----------
Net Loss on Investments (901,725)
----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(925,736)
==========
<FN>
(1) Commenced operations on December 7, 1999.
See notes to financial statements.
</TABLE>
6 Nasdaq 100 Index Fund
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<TABLE>
<CAPTION>
EAGLE FUNDS
NASDAQ 100 INDEX FUND
STATEMENT OF CHANGES IN NET ASSETS
PERIOD ENDED MAY 31, 2000(1)
(UNAUDITED)
<S> <C>
OPERATIONS:
Net investment loss $ (24,011)
Net realized gain on investments 389
Net change in unrealized appreciation and depreciation on investments (902,114)
-----------
Net decrease in net assets resulting from operations (925,736)
-----------
CAPITAL SHARE TRANSACTIONS (NOTE 3): 6,051,746
-----------
TOTAL INCREASE IN NET ASSETS 5,126,010
NET ASSETS:
Beginning of year 100,000
-----------
End of year $5,226,010
===========
<FN>
(1) Commenced operations on December 7, 1999.
See notes to financial statements.
</TABLE>
Nasdaq 100 Index Fund 7
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<TABLE>
<CAPTION>
EAGLE FUNDS
NASDAQ 100 INDEX FUND
FINANCIAL HIGHLIGHTS
(UNAUDITED)
CLASS A SHARES CLASS C SHARES
DECEMBER 7, 1999 (1) DECEMBER 20, 1999 (1)
For a Fund share outstanding THROUGH THROUGH
throughout the period MAY 31, 2000 MAY 31, 2000
-------------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00 $10.39
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment loss (0.04) (0.05)
Net realized and unrealized
gains on investments 0.25 (0.28)
----------- -----------
Total from investment operations 0.21 (0.33)
----------- -----------
NET ASSET VALUE, END OF PERIOD $10.21 $10.06
=========== ===========
TOTAL RETURN (2)(3) 2.10% (3.18%)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period $2,813,183 $2,412,827
Ratio of expenses to average net assets:
Net of reimbursements (4) 1.75% 2.50%
Before reimbursements (4) 8.45% 9.74%
Ratio of net investment loss to average net assets:
Net of reimbursements (4) (1.51%) (2.28%)
Before reimbursements (4) (8.21%) (9.52%)
Portfolio turnover rate (2) 0% 0%
<FN>
(1) Commencement of operations
(2) Not annualized
(3) The total return does not reflect the 2.50% front-end sales charge and
1.00% deferred sales charge on Class A and Class C shares, respectively.
(4) Annualized
See notes to financial statements.
</TABLE>
8 Nasdaq 100 Index Fund
<PAGE>
EAGLE FUNDS
NOTES TO THE FINANCIAL STATEMENTS
MAY 31, 2000 (UNAUDITED)
NOTE 1 - ORGANIZATION
Eagle Funds (the "Trust") was established on October 4, 1999, as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end management investment company. The
Nasdaq 100 Index Fund (the "Fund") is a separate, non-diversified investment
portfolio of the Trust. The Fund has three separate classes: Class A, Class C
and Class Y. Each class of shares has a different combination of sales charges,
fees and eligibility requirements. Class A and Class C shares commenced
operations on December 7, 1999 and December 20, 1999, respectively. As of May
31, 2000, Class A and Class C shares are outstanding.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
financial statements have been prepared in accordance with generally accepted
accounting principles ("GAAP") which require management to make estimates and
assumptions at the date of the financial statements. Actual results could
differ from those estimates.
A. INVESTMENT VALUATION
A security traded on a recognized stock exchange is valued at the last sale
price. If no sale is reported, the most recent mean price is used. Money
market instruments which will mature in 60 days or less are valued at cost,
which approximates market value. Any securities for which market quotations are
not readily available are valued at their fair value as determined in good faith
by the Fund's Board of Trustees.
B. EXPENSES
Each class of shares is charged for those expenses directly attributable to
the class. Expenses that are not directly attributable to a class of shares are
typically allocated among the classes in proportion to their relative net
assets.
C. FEDERAL INCOME TAXES
The Fund intends to comply with the requirements of the Internal Revenue Code
that are applicable to regulated investment companies and to distribute all of
its taxable income to its shareholders. Therefore, no federal income tax
provision is required.
Nasdaq 100 Index Fund 9
<PAGE>
D. DISTRIBUTIONS TO SHAREHOLDERS
Dividends, if any, from net investment income, will be declared and paid
quarterly. Distributions of net realized gains, if any, will be declared at
least annually. Distributions to shareholders are recorded on the ex-dividend
date. The Fund may periodically make reclassifications among certain of its
capital accounts as a result
of the timing and characterization of certain income and capital gains
distributions determined annually in accordance with federal tax regulations,
which may differ from GAAP.
E. OTHER
Investment transactions are accounted for on the trade date. The Fund
determines the gain or loss realized from the investment transactions by
comparing the cost of the security lot sold with the net sale proceeds.
Dividend income is recognized on the ex-dividend date and interest income is
recognized on an accrual basis.
NOTE 3 - CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
Transactions in shares of the Fund for the period ended May 31, 2000 were as
follows:
Shares Dollars
-------- -----------
<S> <C> <C>
CLASS A SHARES:
Shares sold 272,952 $3,297,659
Shares redeemed (7,495) (89,032)
-------- -----------
Net increase 265,457 3,208,627
-------- -----------
CLASS C SHARES:
Shares sold 247,844 2,935,818
Shares redeemed (8,018) (92,699)
-------- -----------
Net increase 239,826 2,843,119
-------- -----------
Net increase from capital share transactions 505,283 $6,051,746
======== ===========
</TABLE>
10 Nasdaq 100 Index Fund
<PAGE>
EAGLE FUNDS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
MAY 31, 2000 (UNAUDITED)
NOTE 4 - INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the period ended May 31, 2000 were $5,991,708 and $9,944,
respectively. At May 31, 2000, gross unrealized appreciation and depreciation
of investments, based on cost for financial statement and federal income tax
purposes of $5,998,478, were as follows:
<TABLE>
<CAPTION>
<S> <C>
Unrealized appreciation $ 277,896
Unrealized depreciation (1,180,010)
------------
Net unrealized depreciation on investments $ (902,114)
============
</TABLE>
NOTE 5 - TRANSACTIONS WITH AFFILIATES
The Fund has an agreement with Ranson & Associates, Inc. (the "Adviser" or
"Ranson"), with whom certain officers and trustees of the Fund are affiliated,
to furnish investment advisory services to the Funds. Under the terms of the
agreement, the Fund will pay the Adviser a monthly fee at an annual rate of
0.50% of the average daily net assets of the Fund. The Adviser has also agreed
to voluntarily reduce fees for expenses (exclusive of any distribution or
service fees and extraordinary expenses) that exceed 1.50% of average daily net
assets of the Fund until November 30, 2000. During the period ended May 31,
2000, the Adviser waived investment advisory fees of $6,487 and reimbursed the
Fund $83,996 for other expenses.
Ranson also serves as distributor of the Fund's shares. As distributor, Ranson
manages the offering of the Fund's shares and is responsible for all sales and
promotional activities. In order to reimburse Ranson for its costs in
connection with these activities, and to compensate authorized dealers, the Fund
has adopted a Distribution and Service Plan ("the Plan") pursuant to 12b-1 under
the 1940 Act. The Plan allows the Fund to pay distribution fees for the sales
of its shares and for services provided to shareholders. Under the Plan, Class
A and Class C shares each pay an annual service fee of up to 0.25% of the
average daily net assets of the respective class. In addition, Class C shares
pay an annual distribution fee of 0.75% of the average daily net assets of such
class. During the period ended May 31, 2000, the Fund incurred distribution
expenses of $1,824 and $5,678 for Class A and Class C shares, respectively. As
distributor, Ranson received commissions of $28,647 from the sale of Class A
shares during the period ended May 31, 2000.
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RANSON &ASSOCIATES, INC.
Nasdaq 100 Index Fund 11
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NASDAQ 100 INDEX FUND
A SERIES OF EAGLE FUNDS
