[LOGO]
iMILLENNIUM FUND
SEMI-ANNUAL
REPORT
AUGUST 31, 2000
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[logo] iMILLENNIUM FUND
Dear Fellow Shareholders:
We are pleased to provide you the first formal report since launching
the iMillennium Fund(TM) on April 17, 2000. The information presented to you in
the following pages pertains to your Fund's performance through August 31, 2000.
The iMillennium Fund(TM) finished August with a Net Asset Value ("NAV")
of $11.79, which translates to a total investment return of 17.9% since the
Fund's inception. As most of you are aware, this year has produced extreme
volatility for the stock market in general, and Internet companies in
particular. We believe that market volatility will continue, and be particularly
felt by Internet companies since they tend to trade on high expectations.
iMillennium Fund(TM) is, and will continue to be, disciplined in its
investment approach. We believe the Internet is as revolutionary now as Henry
Ford's production line was then. The Internet's potential impact on
manufacturers, distributors, retailers, and suppliers of products, services, and
contents, as well as on consumers, has not yet been fully realized. As the
Internet grows and evolves, we continue to see tremendous opportunity: for
companies focused on enabling and enhancing access to the Internet; for
companies focused on designing and developing products and services that enable
high-speed Internet connectivity; for companies focused on providing computer,
digital, and electronic hardware products designed and developed to enhance the
Internet experience; for companies focused on developing software applications
that enable a variety of Internet activities; for companies focused on the
buying and selling of products and services over the Internet; for companies
focused on engaging in or enabling corporate commercial transactions over the
Internet; and for companies focused on providing professional and information
services related to the Internet. We see the opportunity for these types of
companies and will continue to focus our research on those companies. Sincerely,
Omar S. Rivero
Portfolio Manager
iMillennium Fund(TM)
Past Performance is not indicative of future results. Investment returns and
principal value vary, and you may have a gain or loss when you sell shares.
Funds whose investments are concentrated in a specific industry or sector may be
subject to a higher degree of market risk than funds whose investments are
diversified and may not be suitable for all investors. For more complete
information on the iMillennium Fund, including a prospectus containing more
complete information on fees, expenses and risks, contact us at our toll free
number 877.881.2747.
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iMILLENNIUM FUND
SCHEDULE OF INVESTMENTS
August 31, 2000
(Unaudited)
MARKET
SHARES VALUE
------ -----
COMMON STOCKS - 95.48%
BROADBAND - 10.35%
<C> <S> <C>
7,300+ At Home Corporation .................... $106,306
4,300+ Charter Communications, Inc. ........... 65,844
1,200+ Copper Mountain Networks, Inc. ......... 71,925
1,000+ Inktomi Corporation .................... 130,375
2,380+ Terayon Communication Systems, Inc. .... 132,090
--------
506,540
--------
CONTENT/PORTALS - 9.05%
4,026+ America Online, Inc. ................... 236,024
2,000+ CNET Networks, Inc. .................... 67,000
1,154+ Yahoo! Inc. ............................ 140,211
--------
443,235
--------
E-COMMERCE - 2.05%
100+ Amazon.com, Inc. ....................... 4,150
1,550+ eBay, Inc. ............................. 96,100
--------
100,250
--------
E-COMMERCE ENABLERS - 10.08%
2,310+ Ariba, Inc. ............................ 363,536
2,079+ Commerce One, Inc. ..................... 130,002
--------
493,538
--------
FIBER OPTICS - 11.08%
500+ Avanex Corpo ........................... 75,734
500 Corning, Inc. .......................... 163,969
3,000+ Global Crossing Ltd. ................... 90,188
1,000+ JDS Uniphase Corporation ............... 124,625
2,200+ Metromedia Fiber Network, Inc. ......... 87,863
--------
542,379
--------
See Notes to Financial Statements.
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iMILLENNIUM FUND
SCHEDULE OF INVESTMENTS
August 31, 2000
(Unaudited)
MARKET
SHARES VALUE
------ -----
FINANCE - 1.65%
1,800+ CMGI, Inc. 80,550
--------
HARDWARE/STORAGE - 3.02%
1,000+ Dell Computer Corporation 43,625
400+ Storage Network, Inc. 40,600
500+ Sun Microsystems, Inc. 63,469
--------
147,694
--------
INFRASTRUCTURE - 14.97%
4,476+ Cisco Systems, Inc. .................... 306,606
2,000+ F5 Networks, Inc. ...................... 117,000
400+ Juniper Networks, Inc. ................. 85,500
1,500+ Redback Networks, Inc. ................. 224,063
--------
733,169
--------
SEMICONDUCTOR - 12.94%
1,200+ Agilent Technologies, Inc. ............. 72,375
1,500+ Broadcom Corporation-Class A ........... 375,000
300+ PMC-Sierra, Inc. ....................... 70,800
1,300+ Xilinx, Inc. ........................... 115,538
--------
633,713
--------
SERVICES - 8.41%
1,000+ Critical Path, Inc. .................... 77,250
2,590+ Exodus Communications, Inc. ............ 177,253
790+ VeriSign, Inc. ......................... 157,111
--------
411,614
--------
See Notes to Financial Statements.
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iMILLENNIUM FUND
SCHEDULE OF INVESTMENTS
August 31, 2000
(Unaudited)
MARKET
SHARES VALUE
------ -----
SOFTWARE - 6.63%
560+ Check Point Software Technologies, Ltd. 81,655
1,000+ Microsoft Corporation .................. 69,812
640+ Software.com, Inc. ..................... 93,160
2,103+ Vignette Corporation 80,177
--------
324,804
--------
WIRELESS PRODUCTS/SERVICES - 5.26%
2,000+ Nokia Corporation ...................... 89,875
2,500+ Motorola, Inc. ......................... 90,156
1,295+ QUALCOMM, Inc. ......................... 77,538
--------
257,569
--------
TOTAL INVESTMENTS
(Cost $3,938,637) ............ 95.48% 4,675,055
Cash and other assets
less liabilities ........... 4.52% 221,170
------ -----------
TOTAL NET ASSETS ............ 100.00% $ 4,896,225
====== ===========
Federal Tax Information: At August 31, 2000 the net unrealized
appreciation based on cost for Federal income tax purposes
of $3,938,637 was as follows:
Aggregate gross unrealized appreciation for all
investments for which there was an excess of
value over cost ............................. $ 890,009
Aggregate gross unrealized depreciation
for all investments for which there was an excess
of cost over value .......................... (153,591)
---------
Net unrealized appreciation ................. $ 736,418
=========
<FN>
* Non-income producing security.
See Notes to Financial Statements.
</FN>
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iMILLENNIUM FUND
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
(Unaudited)
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ASSETS:
Investments in securities, at value
(cost $3,938,637) (Note 2) ................... $ 4,675,055
Cash .................................................. 192,291
Receivable for fund shares sold ....................... 8,241
Dividends and interest receivable ..................... 90
Prepaid expenses ...................................... 23,609
Due from investment advisor (Note 3) .................. 3,268
-----------
Total Assets .................................. 4,902,554
-----------
LIABILITIES:
Accrued directors fees ................................ 683
Accrued expenses and other liabilities ................ 5,646
-----------
Total Liabilities ............................. 6,329
-----------
Net Assets .................................... $ 4,896,225
===========
NET ASSETS CONSIST OF:
Capital stock, no par value; unlimited shares
authorized; 415,435 shares outstanding ........ $ 4,362,189
Undistributed net investment loss ..................... (34,868)
Accumulated net realized loss from
investment transactions ....................... (167,514)
Net unrealized appreciation on investments ............ 736,418
-----------
Net Assets ............................................ $ 4,896,225
===========
Net asset value ($4,896,225/415,435) .................. $ 11.79
===========
See Notes to Financial Statements.
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iMILLENNIUM FUND
STATEMENT OF OPERATIONS
For the Period Ended August 31, 2000
(Unaudited)
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INVESTMENT INCOME:
Dividends ............................................ $ 90
---------
Total investment income ...................... 90
---------
EXPENSES:
Administration fees (Note 4) ........................ 17,005
Legal fees ........................................... 8,772
Transfer agent fees .................................. 6,057
Insurance expense .................................... 4,703
Audit fees ........................................... 3,884
12b-1 fees ........................................... 3,178
Printing and postage expense ......................... 2,981
Custody fees ......................................... 2,376
Directors fees ....................................... 683
Other expenses ....................................... 1,535
---------
Total expenses ............................... 70,242
Less: Advisory fees waived (Note 3) .......................... (19,068)
Expenses reimbursed (Note 3) ........................... (16,216)
---------
Net expenses ................................................. 34,958
---------
Net investment loss .......................................... (34,868)
---------
NET REALIZED AND UNREALIZED GAINS/(LOSSES)
ON INVESTMENTS: (Note 2)
Net realized loss from investment transactions ............... (167,514)
Net change in unrealized appreciation
on investments ....................................... 736,418
---------
Net gain on investments ...................................... 568,904
---------
Net increase in net assets resulting
from operations ...................................... $ 534,036
=========
<FN>
(1) For the period April 17, 2000 (commencement of operations) to August 31,
2000.
See Notes to Financial Statements.
</FN>
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iMILLENNIUM FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
PERIOD ENDED
AUGUST 31, 2000 (1)
(Unaudited)
-------------------
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OPERATIONS:
Net investment loss ..................................... $ (34,868)
Net realized loss from investment transactions .......... (167,514)
Net change in unrealized appreciation on investments .... 736,418
-----------
Net increase in net assets resulting from operations .... 534,036
-----------
FUND SHARE TRANSACTIONS:
Net increase in net assets from fund share
transactions (Note 4) ........................... 4,262,189
-----------
Net increase in net assets .............................. 4,796,225
NET ASSETS:
BEGINNING OF PERIOD ..................................... 100,000
-----------
END OF PERIOD (including net investment loss of $34,868) $ 4,896,225
===========
<FN>
(1) For the period April 17, 2000 (commencement of operations) to August 31,
2000.
See Notes to Financial Statements.
</FN>
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iMILLENNIUM FUND
NOTES TO FINANCIAL STATEMENTS
August 31, 2000
(Unaudited)
NOTE 1. ORGANIZATION
iMillennium Fund (the "Fund"), is organized as a series of iMillennium
Capital Trust a Delaware business trust formed on November 4, 1999, and
registered as an open-end, non-diversified, management investment company under
the Investment Company Act of 1940, as amended. The Fund commenced operations on
April 17, 2000. The Fund's business and affairs are managed by its officers
under the direction of its Board of Trustees. The Fund's investment objective is
to seek long-term growth of capital.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by the Fund. These policies are in conformity with
generally accepted accounting principles.
A. SECURITY VALUATION -- Securities are valued as of the close each
business day, at the last sales price on the exchange or the
over-the-counter market in which such securities are primarily
traded, or in the absence of recorded sales, the mean between the
closing bid and asked prices. Securities for which market
quotations are not readily available are valued at their fair
value following procedures approved by the Board of Trustees.
Short-term investments held by the Fund that mature in 60 days or
less are valued at amortized cost, which approximates market
value.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Securities
transactions are accounted for on the trade date. Dividend income
is recorded on the ex-dividend date. Interest income is recorded
on the accrual basis.
C. FEDERAL INCOME TAXES -- The Fund intends to comply with
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income
to its shareholders. Therefore, no provision for Federal income
tax is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records
dividends and distributions to shareholders on the ex-dividend
date. The Fund will distribute its net investment income, if any,
semi-annually, and net realized capital gains, if any, annually.
E. USE OF ESTIMATES -- The preparation of financial statements in
conformity with general accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those
estimates.
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iMILLENNIUM FUND
NOTES TO FINANCIAL STATEMENTS
August 31, 2000
(Unaudited)
NOTE 3. INVESTMENT ADVISORY FEES AND OTHER
The Fund has an investment advisory agreement with iMillennium Capital
Management, Inc. ("Adviser"). Under this agreement, the Adviser provides the
Fund with investment advice and supervises the Fund's management and investment
programs for which the Fund pays a monthly advisory fee equal, on an annual
basis, to 1.50% of its average daily net assets.
The adviser has voluntarily agreed to waive its advisory fee and
reimburse other expenses to the extent that the Fund's operating expenses exceed
2.75% (excluding brokerage commission, interest, taxes and extraordinary
expenses) of the Fund's average daily net assets. For the period ended August
31, 2000, the Adviser waived and reimbursed a total of $35,284, pursuant to the
undertaking. The Adviser has agreed to continue such undertaking until the
fiscal year ending February 28, 2001.
The Fund has a fund accounting and administrative agreement with
American Data Services, Inc., ("ADS"). ADS receives a fee, computed daily and
payable monthly, based on a percentage of average daily net assets, subject to
certain minimums.
NOTE 4. CAPITAL SHARE TRANSACTIONS
At August 31, 2000, there were an unlimited number of shares authorized
with no par value. Transactions in capital stock during the period ended August
31, 2000 were as follows:
SHARES AMOUNT
------ ------
Shares sold ............................... 405,435 $4,262,189
Shares issued for dividend reinvestment ... 0 0
Shares repurchased ........................ 0 0
------- ----------
405,435 $4,262,189
======= ==========
NOTE 5. INVESTMENT TRANSACTIONS
During the period ended August 31, 2000, purchases and sales of
investment securities, excluding short term securities aggregated $6,316,484,
and $2,210,333, respectively.
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iMILLENNIUM FUND
NOTES TO FINANCIAL STATEMENTS
August 31, 2000
(Unaudited)
FOR THE
PERIOD ENDED
AUGUST 31, 2000 (1)
(UNAUDITED)
-------------------
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Net asset value, beginning of period ................. $ 10.00
----------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss .................................. (0.10)
Net realized and unrealized gain
on investments ....................................... 1.89
----------
Total from investment operations ..................... 1.79
----------
Net asset value, end of period ....................... $ 11.79
==========
Total return ......................................... 17.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ............. $ 4,896
RATIOS TO AVERAGE NET ASSETS:
Expenses (before reimbursement) ...................... 5.53%*
Expenses (net of reimbursement) ...................... 2.75%*
Net investment income (before reimbursement) ......... (5.52)%*
Net investment income (net of reimbursement) ......... (2.74)%*
Portfolio Turnover Rate .............................. 98.63%
<FN>
(1) For the period April 17, 2000 (commencement of operations) to August 31,
2000.
* Annualized
See Notes to Financial Statements.
</FN>
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INVESTMENT ADVISER
iMillennium Capital Management, Inc.
17225 El Camino Real
Suite 415
Houston, TX 77058
ADMINISTRATOR AND
TRANSFER AGENT
American Data Services, Inc.
150 Motor Parkway
Hauppauge, NY 11788
CUSTODIAN
Union Bank of California, N.A.
475 Sansome Street
15th Floor
San Francisco, CA 94111
DISTRIBUTOR
AmeriMutual Funds Distributor, Inc.
150 Motor Parkway
Hauppauge, NY 11788
LEGAL COUNSEL
Chamberlain, Hrdlicka, White,
Williams, & Martin
1200 Smith Street
Suite 1400
Houston, TX 77002
INDEPENDENT ACCOUNTANTS
McCurdy & Associates CPA's, Inc.
27955 Clemens Road
Westlake, OH 44145
