(LOGO)
e-HARMON
MUTUAL FUNDS
INTERNET FUND
----------------------
Semi-Annual Report
June 30, 2000
<PAGE>
E-HARMON INTERNET FUND
TABLE OF CONTENTS
-----------------------------------------------------------------------------
Letter to Shareholders......................................................1
Schedule of Investments.....................................................5
Statement of Assets and Liabilities.........................................8
Statement of Operations.....................................................9
Statement of Changes in Net Assets.........................................10
Financial Highlights.......................................................11
Notes to the Financial Statements..........................................12
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
LETTER TO SHAREHOLDERS
-----------------------------------------------------------------------------
July 24, 2000
e-harmon Internet Fund Shareholders:
The first half of 2000 for Internet and technology investors was like a Clint
Eastwood film festival. The year began with "High Plains Drifter," moved onto
"Every Which Way But Loose," and ended up in "Hang 'Em High" with a dose of "The
Good, The Bad and The Ugly."
The euphoria that started in early 1999 and continued through Q1:2000, we
believe simply stretched valuations from reasonable to extreme. In Q2:2000, the
"good," the "bad," and "ugly" rose simultaneously. As a result, the market
ripened for a valuation-driven correction. The second quarter seemed like a
wild roller coaster ride with significant downturns in the Nasdaq hitting
technology particularly hard on April 14th and May 23rd.
The Nasdaq Composite Index reflected market sentiment more than fundamentals
throughout 1999, in our opinion. Most market indices retreated in Q2:2000,
including the first negative quarter for the Nasdaq since Q3:1998. We believe
that the welcome return to fundamentals was the straw that broke the camel's
back. At their nadir in April and May, many Internet and technology stocks were
60-90% off their 52-week highs. The e-harmon Internet Fund was fortunate to
launch on May 16, which enabled the Fund to buy near the May 23 Nasdaq dip. For
the period May 16, 2000 (inception of the Fund) through June 30, 2000, the Class
A shares of the e-harmon Internet Fund outperformed the Nasdaq, the S&P 500R
Index and the Russell 2000R Index (see chart on next page).
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
LETTER TO SHAREHOLDERS (CONTINUED)
-----------------------------------------------------------------------------
TOTAL RETURN FROM MAY 16, 2000 (INCEPTION OF INTERNET FUND)
THROUGH JUNE 30, 2000
e-harmon e-harmon
Internet Fund Internet Fund
(Class A Shares)<F1> (Class A Shares)<F1> Nasdaq
Without With Composite S&P 500/R Russell 2000/R
Sales Charge Sales Charge<F2> Index<F3> Index<F3> Index<F3>
-------------------- -------------------- ---------- --------- -------------
13.40% 6.88% 9.96% 0.29% 4.06%
On May 16th, when the Federal Reserve met to raise rates, the e-harmon Internet
Fund initiated positions across seven Internet sectors of Access, Broadband,
Business-to-Business, e-Commerce, Services, Software and Hardware. The market
environment provided an opportunity for the Fund to take advantage of some
compelling valuations. True to our strategy to buy and hold stocks that we feel
are market leaders or potential market leaders, the Fund's core positions
remained unchanged through the end of the quarter.
As of the date of this writing, our research team sees several powerful dynamics
at work in the Internet sector:
EMERGENCE OF OPTICAL NETWORKS - the development of innovative optical network
equipment is a key driver in the broadband sector. We see potential
opportunities for high-growth rates and widening long-term margins for
providers in this space. A few companies of particular interest to us are JDS
Uniphase, Corning, Nortel Networks, Juniper and PMC Sierra.
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
LETTER TO SHAREHOLDERS (CONTINUED)
-----------------------------------------------------------------------------
CONSOLIDATION IN B2B, E-COMMERCE SOFTWARE AND SERVICES - with buyers and
sellers equally focused on value, we see consolidation in this sector. Our
research is focused on two types of companies in this space: the "gorillas"
who are capturing market share, revenue and competitive power, and the
emerging leaders (King Kong tomorrow?) who pioneer attractive new markets.
Companies that appeal to us include Mercury Interactive, Interwoven, Ariba and
TIBCO.
INCREASING IMPORTANCE OF THE NETWORK EFFECT - while much has been said of
"Internet Time," it is true that the evolution of new products and markets -
even industries - can be compressed from years to just months on the Internet.
Companies that embrace the relentless speed and benefits of the Network Effect
- the growing value and momentum of a network as new participants join - may
evolve from emerging leaders to gorillas in the span of months or quarters.
With the Internet entering its next stage of development we will continue to
look for companies with the ability to capitalize on this powerful trend.
As market mood swings come and go throughout the rest of 2000, the investment
team continues to focus on the major themes and what we consider the core
underlying "glue" stocks of the Internet and its expanding universe. We look
for companies that are truly "Internet centric," those that we believe can scale
and become a core part of the foundation of the evolving Internet. With your e-
harmon Internet Fund we put our investment ideas to work in identifying
corporate Internet, business Internet, industrial Internet, utility Internet
companies that, like glue holding together a puzzle, we believe cannot be
easily removed from the foundation of today's and tomorrow's Internet.
Sincerely,
/s/Steve Harmon /s/Lisa Cavallari
Steve Harmon Lisa Cavallari
Co-Portfolio Manager Co-Portfolio Manager
e-harmon Internet Fund e-harmon Internet Fund
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
LETTER TO SHAREHOLDERS (CONTINUED)
-----------------------------------------------------------------------------
The Fund invests primarily in companies engaged in Internet related business
activities and, as such, may involve significantly greater risks and experience
greater volatility than a fund that does not concentrate in one industry.
References to specific securities and industries included in the foregoing are
not a recommendation to buy or sell any securities. The securities were held by
the Fund as of June 30, 2000, and may or may not be part of the Fund's portfolio
as of the date of this report or in the future.
<F1> Performance data quoted is not annualized, represents past performance
and does not guarantee future results. The performance data reflect
changes in principal value. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. A fund's
performance, especially for short time periods, should not be the sole
factor in making your investment decision. The Fund's investment adviser
is currently reimbursing certain Fund expenses. Absent such
reimbursements, the performance cited would be reduced. The Fund charges
a contingent redemption fee for shares held less than six months of
1.00%. If this charge were reflected, the performance would be reduced.
<F2> Performance figure reflects the Fund's maximum sales charge imposed on
purchases of Class A shares of 5.75%. The maximum sales charge imposed on
the Fund's Class A shares may be waived in certain circumstances. See the
prospectus for details.
<F3> The S&P/R 500 Index is a registered trademark of Standard & Poor's and is
an unmanaged broadly based index of the common stock prices of 500 large
U.S. companies that includes the reinvestment of dividends. The Nasdaq
Composite Index is an unmanaged, broad based index of over 5,000 stocks
that consists of all Nasdaq domestic and non-U.S. based common stocks
listed on the Nasdaq Stock Market. The Russell 2000R Index is calculated
by the Frank Russell Company. It measures the performance of the 2,000
smallest companies in the Russell 3000 Index as ranked by total market
capitalization and is a proxy for the small cap market. You cannot invest
directly in an index.
---------------------------------------------------------------------
On August 25, 2000, e-harmon Internet Fund changed its name to Zero
Gravity Internet Fund. In addition, the Fund is now managed by an
investment team. The members of the investment team are Steve Harmon,
Lisa Cavallari, Randy Chin and Patrick Wong.
---------------------------------------------------------------------
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
SCHEDULE OF INVESTMENTS
June 30, 2000 (Unaudited)
-----------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
-----------------------------------------
COMMON STOCKS - 84.91%
ACCESS - 5.72%
Exodus Communications, Inc.<F1> 1,800 $ 82,913
Level 3 Communications, Inc.<F1> 500 44,000
Nextel Communication, Inc.<F1> 1,900 116,256
Phone.com, Inc.<F1> 1,300 84,663
-----------
327,832
-----------
B2B - 6.90%
Ariba, Inc.<F1> 2,100 205,898
Commerce One, Inc.<F1> 2,000 90,750
i2 Technologies, Inc.<F1> 950 99,052
-----------
395,700
-----------
BROADBAND - 28.43%
CIENA Corp.<F1> 600 100,013
Corning, Inc. 800 215,900
Extreme Networks, Inc.<F1> 1,350 142,425
Foundry Networks, Inc.<F1> 1,700 187,000
JDS Uniphase Corp.<F1> 1,350 161,831
Juniper Networks, Inc.<F1> 1,300 189,231
Nortel Networks Corp. 2,600 177,450
Redback Networks, Inc.<F1> 400 71,200
SDL, Inc.<F1> 750 213,891
Sycamore Networks, Inc.<F1> 1,550 171,081
-----------
1,630,022
-----------
E-COMMERCE - 4.00%
eBay, Inc.<F1> 1,200 65,175
FreeMarkets, Inc.<F1> 1,500 71,156
Yahoo!, Inc.<F1> 750 92,906
-----------
229,237
-----------
<F1> Non-income producing
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2000 (Unaudited)
-----------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
-----------------------------------
HARDWARE - 14.51%
Altera Corp.<F1> 600 $ 61,162
Broadcom Corp.<F1> 900 197,044
Conexant Systems, Inc.<F1> 1,100 53,487
Intel Corp. 750 100,266
MMC Networks, Inc.<F1> 1,100 58,781
PMC-Sierra, Inc.<F1> 800 142,150
Sun Microsystems, Inc.<F1> 1,200 109,125
Vitesse Semiconductor Corp.<F1> 1,500 110,344
-----------
832,359
-----------
SERVICES - 4.64%
AppNet, Inc.<F1> 900 32,400
CMGI, Inc.<F1> 1,700 77,881
Scient Corp.<F1> 1,650 72,806
Viant Corp.<F1> 2,800 82,950
-----------
266,037
-----------
SOFTWARE - 20.71%
BroadVision, Inc.<F1> 2,900 147,356
Business Objects S.A.<F1> 1,000 88,125
E.piphany, Inc.<F1> 600 64,313
Engage Technologies, Inc.<F1> 2,600 33,638
Interwoven, Inc.<F1> 1,300 142,980
Kana Communications, Inc.<F1> 1,850 114,469
Mercury Interactive Corp.<F1> 1,750 169,313
Oracle Corp.<F1> 1,000 84,062
TIBCO Software, Inc.<F1> 1,600 171,575
Vignette Corp.<F1> 3,300 171,651
-----------
1,187,482
-----------
TOTAL COMMON STOCKS
(COST $4,179,264) 4,868,669
-----------
<F1> Non-income producing
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2000 (Unaudited)
-----------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------------------------------
UNIT INVESTMENT TRUST- 2.44%
Nasdaq - 100 Trust 1,500 $ 139,781
-----------
TOTAL UNIT INVESTMENT TRUST
(COST $138,356) 139,781
-----------
PRINCIPAL
AMOUNT
------------------------------------
SHORT-TERM INVESTMENTS - 19.74%
UMB Bank, n.a. Money Market Fiduciary $1,131,757 1,131,757
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $1,131,757) 1,131,757
-----------
TOTAL INVESTMENTS - 107.09%
(COST $5,449,377) 6,140,207
NUMBER OF
CONTRACTS
------------------------------------
CALL OPTIONS WRITTEN - (0.24)%
CIENA Corp. expires 7/21/00
exercise price $150 6 (13,275)
Liabilities less Other Assets - (6.85)% (393,008)
-----------
NET ASSETS - 100.00% $5,733,924
==========
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
-----------------------------------------------------------------------------
ASSETS:
Investments, at value (cost $5,449,377) $6,140,207
Receivable from Adviser 23,661
Interest and dividends receivable 5,855
Cash 2,000
-----------
Total Assets 6,171,723
-----------
LIABILITIES:
Payable for investments purchased 389,000
Written options, at value
(premium received of $11,457) 13,275
Accrued distribution fee 1,483
Other accrued expenses and liabilities 34,041
-----------
Total Liabilities 437,799
-----------
NET ASSETS $5,733,924
===========
NET ASSETS CONSIST OF:
Paid-in-capital $5,044,912
Net unrealized appreciation on investments 689,012
-----------
NET ASSETS $5,733,924
==========
NET ASSET VALUE PER SHARE
($5,733,924 DIVIDED BY 505,738 SHARES OUTSTANDING) $11.34
======
MAXIMUM OFFERING PRICE PER SHARE
(NET ASSET VALUE, PLUS 6.08% OF NET
ASSET VALUE OR 5.75% OF OFFERING PRICE) $12.03
======
See Notes to the Financial Statements.
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
STATEMENT OF OPERATIONS
For the Period Ended June 30, 2000<F1> (Unaudited)
-----------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 10,311
Dividends (net of withholding tax $7) 110
-----------
10,421
-----------
EXPENSES:
Fund accounting and administration fees 8,822
Investment advisory fees 7,414
Trustees' fees and expenses 6,049
Professional fees 5,671
Transfer agent fees and expenses 5,042
Printing and postage expense 2,520
Federal and state registration fees 1,840
Distribution fees 1,483
Custody fees 920
Miscellaneous 3,177
-----------
Total expenses before waiver and reimbursement 42,938
Waiver and reimbursement of expenses by Adviser (31,075)
-----------
Net expenses 11,863
-----------
Net Investment Loss (1,442)
-----------
REALIZED AND UNREALIZED GAINS:
Net unrealized appreciation
on investments 689,012
-----------
Net realized and unrealized gains on investments 689,012
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $687,570
===========
<F1> Commenced operations on May 16, 2000.
See Notes to the Financial Statements.
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended June 30, 2000<F1> (Unaudited)
-----------------------------------------------------------------------------
OPERATIONS:
Net investment loss $ (1,442)
Net unrealized appreciation on investments 689,012
-----------
Net increase in net assets resulting from operations 687,570
-----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 5,066,876
Cost of shares redeemed (120,522)
-----------
Net increase from capital transactions 4,946,354
-----------
TOTAL INCREASE IN NET ASSETS 5,633,924
NET ASSETS:
Beginning of period 100,000
-----------
END OF PERIOD $5,733,924
===========
<F1> Commenced operations on May 16, 2000.
See Notes to the Financial Statements.
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
FINANCIAL HIGHLIGHTS
For the Period Ended June 30, 2000<F1> (Unaudited)
-----------------------------------------------------------------------------
CLASS A
SHARES
-------
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss<F2> (0.00)
Net realized and unrealized gain
on investments 1.34
----
Total from investment operations 1.34
----
NET ASSET VALUE, END OF PERIOD $11.34
======
TOTAL RETURN<F3> 13.40%
SUPPLEMENTAL DATA AND RATIOS
Net Assets, end of period (in 000s) $5,734
Ratio of expenses to average net assets<F4><F5> 2.00%
Ratio of net investment income to average net assets<F4><F5> (0.25)%
Portfolio turnover rate 0%
<F1> Commenced operations on May 16, 2000.
<F2> Includes net investment loss of $(0.003).
<F3> Does not reflect sales charge or redemption fee and is not annualized.
<F4> Annualized.
<F5> Net of waiver and reimbursement of expenses by Adviser. Without waiver and
reimbursement of expenses, the ratio of expenses to average net assets
would have been 7.27%, and the ratio of net investment income to average
net assets would have been (5.52)% for the period ended June 30, 2000.
See Notes to the Financial Statements.
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2000 (Unaudited)
---------------------------------------------------------------------------
NOTE 1 - ORGANIZATION AND REGISTRATION
e-harmon Funds (the "Trust") was established on December 22, 1999 as a Delaware
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
Trust currently consists of two series: e-harmon Internet Fund and e-harmon
Net30 Index Fund. The e-harmon Internet Fund (the "Fund"), included in this
report, is a separate, non-diversified investment portfolio of the Trust. The
Fund commenced operations on May 16, 2000. As of June 30, 2000, e-harmon Net30
Index Fund had not yet commenced operations.
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. These
policies are in conformity with accounting principles generally accepted in the
United States ("GAAP").
A. USE OF ESTIMATES
-------------------------------------------------------------------------------
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements
and the reported changes in net assets during the reporting period. Actual
results could differ from those estimates.
B. ORGANIZATION AND PREPAID INITIAL REGISTRATION EXPENSES
-------------------------------------------------------------------------------
Expenses incurred by the Trust in connection with the organization and the
initial public offering of shares are expensed as incurred. These expenses
were advanced by the Adviser, and the Adviser has agreed to voluntarily
reimburse the Fund for these expenses, subject to potential recovery (see
Note 3). Prepaid initial registration expenses are deferred and amortized
over the period of benefit (not to exceed twelve months).
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
C. INVESTMENT VALUATION
-------------------------------------------------------------------------------
Securities (other than short-term instruments) for which market quotations
are readily available are valued at the last trade price on the national
securities exchange on which such securities are primarily traded.
Securities for which there were no transactions on a given day or
securities not listed on a national securities exchange generally are
valued at the average of the closing bid and asked quotations. Any
securities for which market quotations are not readily available are valued
at their fair value as determined in good faith by Zero Gravity Capital
Management LLC (the "Adviser") pursuant to guidelines established by the
Board of Trustees. (Effective July 18, 2000, e-harmon Capital Management
changed its name to Zero Gravity Capital Management LLC.)
D. FEDERAL INCOME TAXES
-------------------------------------------------------------------------------
The Fund intends to qualify annually for treatment as a "regulated
investment company" under Subchapter M of the Internal Revenue Code of
1986, as amended, and, if so qualified, will not be liable for federal
income taxes to the extent earnings are distributed to shareholders on a
timely basis.
E. DISTRIBUTIONS TO SHAREHOLDERS
-------------------------------------------------------------------------------
Dividends from net investment income and distributions of net realized
gains, if any, will be declared and paid at least annually. Distributions
to shareholders are recorded on the ex-dividend date. The character of
distributions made during the year from net investment income or net
realized gain may differ from the characterization for federal income tax
purposes due to differences in the recognition of income, expense and gain
items for financial statement and tax purposes. Where appropriate,
reclassifications between net asset accounts are made for such differences
that are permanent in nature.
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
F. OPTIONS
-------------------------------------------------------------------------------
The Fund may write put or call options. Premiums received by the Fund upon
writing put or call options are recorded as an asset with a corresponding
liability which is subsequently adjusted to the current market value of
the option. When an option expires, is exercised, or is closed, the Fund
realizes a gain or loss, and the liability is eliminated. The Fund
continues to bear the risk of adverse movements in the price of the
underlying asset during the period of the option, although any potential
loss during the period would be reduced by the amount of the option
premium received.
G. SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES
-------------------------------------------------------------------------------
Investment security transactions are recorded on a trade date basis. The
Fund determines the gain or loss realized from investment transactions by
comparing the original cost of the security lot sold with the net sale
proceeds. Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Interest income is recorded on the accrual basis and
includes amortization of premiums and discounts.
NOTE 3 - AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
The Trust has an agreement with the Adviser to furnish investment advisory
services to the Fund. As compensation for its services, the Adviser will receive
an investment advisory fee at an annual rate of 1.25% of the average daily net
assets of the Fund, which is accrued daily and paid monthly. The Adviser has
also agreed to voluntarily pay Fund expenses (exclusive of brokerage, interest,
taxes and extraordinary expenses) that exceed 2.00% of average daily net assets
of the Fund's Class A shares until May 16, 2001. The Adviser is entitled to
recoup amounts waived or reimbursed for a period of up to three years from the
date such amounts were reimbursed or waived, to the extent that actual fees and
expenses for a period are less than the expense limitation. The officers and the
"interested" trustees of the Trust are also officers and directors of the
Adviser.
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
The Trust has entered into an administration and fund accounting agreement and
transfer agent agreement with Sunstone Financial Group, Inc. (the
"Administrator" or the "Transfer Agent"). The Administration and Fund Accounting
Agreement provides for an annual fee of 0.15%, which decreases as the assets of
the Fund reach certain levels, subject to a minimum annual fee of $70,000, plus
out-of-pocket expenses. The Transfer Agent Agreement provides for an annual fee
per shareholder account, with an annual base fee of $18,000. The Transfer Agent
is also paid certain fees related to set-up costs, processing and out-of-pocket
expenses.
The Trust has entered into a distribution agreement with Sunstone Distribution
Services, LLC (the "Distributor"). Under the Distribution Agreement, the
Distributor shall offer shares of the Fund on a continuous basis and may engage
in advertising and solicitation activities in connection therewith.
NOTE 4 - SERVICE AND DISTRIBUTION PLAN
The Fund has adopted a Service and Distribution Plan for the Class A shares (the
"Plan") pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments
by the Fund in connection with the distribution of its shares at an annual rate,
as determined from time to time by the Board of Trustees, of up to 0.25% of
average daily net assets for Class A shares.
NOTE 5 - SHARES OF BENEFICIAL INTERESTS
The Trust is authorized to issue an unlimited number of shares of beneficial
interest in the Trust with a par value of $0.01 per share. The Fund has three
separate classes: Class A, Class B, and Class C. Each class of shares has a
different combination of sales charges, fees and eligibility requirements. As of
June 30, 2000, Class A shares are the only class of shares outstanding.
Transactions in shares of the Fund for the period ended June 30, 2000 were as
follows:
Shares sold 507,402
Shares redeemed (11,664)
---------
Net Increase 495,738
========
E-HARMON semi-annual report
<PAGE>
E-HARMON INTERNET FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2000 (Unaudited)
-----------------------------------------------------------------------------
NOTE 6 - INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Fund for the period ended June 30, 2000 were as follows:
Purchases $4,317,620
Sales -
There were no purchases or sales of long-term U.S. government securities. No
options were closed, expired or exercised during the period ended June 30, 2000.
NOTE 7 - INCOME TAXES
At June 30, 2000, gross unrealized appreciation and depreciation of investments,
based on cost for federal income tax purposes of $5,437,920, were as follows:
Appreciation $834,550
Depreciation (145,538)
---------
Net appreciation on investments $689,012
========
E-HARMON semi-annual report
<PAGE>
For information or shareholder questions contact:
MAILING ADDRESS:
---------------------------------------------
e-harmon Funds
P.O. Box 1631
Milwaukee, WI 53201-1631
OVERNIGHT DELIVERY ADDRESS:
---------------------------------------------
Current Overnight Mailing Address:
e-harmon Funds
207 E. Buffalo Street, Suite 315
Milwaukee, WI 53202-5712
Effective October 1, 2000, overnight deliveries must be sent to:
e-harmon Funds
803 W. Michigan Street, Suite A
Milwaukee, WI 53233-2301
WIRING INFORMATION:
---------------------------------------------
Call 1-800-392-6563 for Investor Account Number
Wiring Instruction
NEW ACCOUNT APPLICATION:
---------------------------------------------
Visit www.e-harmon.com
Call 1-800-392-6563
INVESTOR SERVICES:
---------------------------------------------
e-mail [email protected]
Call 1-800-392-6563
TELEPHONE TRANSACTIONS:
---------------------------------------------
If you have previously authorized the telephone privilege, you can call 1-800-
392-6563 to make share transactions.
VISIT E-HARMON.COM, INC.'S WEB SITE AT:
---------------------------------------------
http://www.e-harmon.com
You may elect to receive statements, confirmations and/or regulatory mailings
electronically in lieu of paper copies by electing this feature on the Web site.
Additional information about the Fund can be found in the following documents,
available without charge upon request:
STATEMENT OF ADDITIONAL INFORMATION (SAI)
---------------------------------------------
Incorporated by reference into this Prospectus
ANNUAL REPORT AND SEMI-ANNUAL REPORT
---------------------------------------------
Contain discussions of the market conditions and investment strategies that
significantly affected the Fund's performance during its most recent fiscal year
These financial statements are submitted for the general information of the
shareholders of the e-harmon Internet Fund. They are not authorized for
distribution to prospective investors unless preceded or accompanied by an
effective Prospectus.
CUSIP NUMBERS:
---------------------------------------------
e-harmon Internet Fund
Class A 26852R104
DISTRIBUTOR:
---------------------------------------------
Sunstone Distribution Services, LLC
(LOGO)
E-HARMON
MUTUAL FUNDS
EH-410-0800
