<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
Annual
Report
MARCH 31, 1999
U.S. EQUITY FUNDS
Quantitative Small Cap Fund
Quantitative Mid Cap Fund
Quantitative Growth and Income Fund
INTERNATIONAL EQUITY FUNDS
Quantitative International Equity Fund
Quantitative Emerging Markets Fund
Quantitative Foreign Value Fund
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
the science of investing
May 28, 1999
Dear Fellow Shareholder:
I am pleased to provide you with the Annual Report of the Quantitative
Group of Funds for the twelve-month period ended March 31, 1999. Over this
period, we have witnessed the most quality- and liquidity-sensitive market in
the past fifty years, with larger capitalization stocks continuing to
significantly outpace both smaller and middle sized companies.
This broader industry trend has been clearly reflected in your funds'
returns for the year, with our large cap fund substantially outperforming our
mid cap and small cap funds. The large cap fund's 12.53% return far exceeded the
average growth and income fund's 5.47% return, while the mid cap and small cap
funds slightly trailed their peer groups by 1.27% and 3.29% respectively.
Much of the year's run-up in large cap stocks can be directly attributed to
last summer's Russian market meltdown and the subsequent East Asian market
crisis, as investor concerns sparked a flight to liquidity and safety. The past
year has also been marked by unprecedented day-to-day market fluctuations,
sparked in part by the incredible volatility of internet stocks. But the
euphoria associated with the breaching of ten thousand by the Dow Jones
Industrials and the astronomical run-up of Internet-related companies, has begun
to give way to concerns about the valuation spreads between larger companies and
the rest of the market.
By way of example, an analysis of stocks in the Russell 2000 indicates that
during the past quarter, the average return for companies with positive earnings
was -9%, while the average return for companies with negative earnings was +13%.
Even more startling is the fact that companies with P/E ratios in excess of 100
posted average quarterly returns of 36%. A broadening of market strength into
the smaller and mid cap stocks appears likely, although we also anticipate the
continued positive performance of large cap stocks.
Although we have begun to include a few select Internet holdings into our
domestic portfolios, we continue to shun those "high-flyers" that show little
promise of posting positive earnings in the immediate future. In the long-run,
we believe that the seemingly unending litany of new internet IPOs will quickly
over-saturate the market, and result in a precipitous downturn in many of these
stocks.
On the international front, Japan's market is showing signs of emerging
from 1998's continued recession, posting a 15% gain on the year, the best in the
Pacific region for the fiscal year ending March 31, 1999. Likewise, the
Brazilian economy has demonstrated remarkable resilience in rebounding from a
40% currency devaluation. Pending IMF funding for Mexico and Brazil, upgraded
credit ratings and changes in investment regulations in Korea and Malaysia, and
recent actions on the part of the Bank of Japan to inject liquidity into the
Japanese market, all bode well for the coming year.
This global economic resurgence has fueled the growing strength,
particularly in the past quarter, of our emerging markets fund which
outperformed its benchmark index by 4.93% and its Lipper peer group by more than
11% for the year. All in all, overseas markets appear to be on the rebound, and
we continue to be optimistic about their long-term investment prospects.
55 Old Bedford Road, Lincoln, MA 01773 . voice 800-331-1244 . fax 781-259-1166
. Distributed by U.S. Boston Capital Corp.
<PAGE>
[LOGO OF QUANTITATIVE APPEARS HERE]
As has become customary, I'd like to take a moment to share with you the
perspectives of our portfolio managers on the broader trends for the upcoming
year:
Steve Esielonis (Quantitative Growth and Income Fund): "Due in large part
to the fund's concentration in technology stocks, it outperformed the S&P 500
again in calendar year 1998 for the second year in a row. The more than 30%
annual returns that the market has produced over the last two years, however,
have driven up valuations for many stocks in the process. The likely result is a
broadening of returns into other sectors such as energy stocks and consumer
cyclicals. We intend to gradually reduce our technology holdings in the coming
months and diversify more broadly across economic sectors in anticipation of
this movement."
Bob von Pentz, CFA (Quantitative Small Cap Fund, Quantitative Mid Cap
Fund): "While this has been a frustrating year, we believe the prolonged period
of small cap underperformance is coming to an end. We are confident that over
the next couple of quarters, merger and acquisition activity will accelerate, as
larger stocks with huge P/E multiples take over their smaller brethren."
"We continue to be amazed at the substantial undervaluation of small and
mid sized companies. And while we cannot forecast the turn, we strongly believe
that it will happen, and will be meaningful and worth the wait."
Norman H. Meltz (Quantitative International Equity Fund and Quantitative
Emerging Markets Fund): "Many positive steps are being taken in the emerging
markets, including removing restrictions on foreign investment, restructuring
debt, increasing foreign reserves, and stabilizing currency. In the developed
markets, we would expect equity markets to continue the past year's pattern of
modest, positive returns."
Bernie Horn (Quantitative Foreign Value Fund): "The stated investment
strategy of the Fund is to buy the best values outside the U.S. We will stick to
this discipline to deliver a predictable investment strategy for investors. In
the first quarter of 1999, we have seen several catalysts positively affect the
value of many investments in the portfolio. This trend is continuing, and we
view the general outlook as quite encouraging."
We look forward with great anticipation to the opportunities and challenges
of the coming year. Despite the inevitable short-term fluctuations of the
market, we remain committed to serving your best interests by maintaining our
disciplined long-term approach to investing. We are available at any time to
answer your questions or to provide assistance, and we continue to enhance and
update our website at www.quantfunds.com with current fund and market
information for your benefit. Thank you again for your continued confidence and
support.
Sincerely,
/s/ Willard L. Umphrey
Willard L. Umphrey
President
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[LOGO OF QUANTITATIVE SMALL CAP FUND APPEARS HERE]
Investment Profile All Data as of March 31, 1999
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INVESTMENT COMMENTARY
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[GRAPHIC APPEARS HERE]
For the Fund's fiscal year (the twelve months ended March 31, 1999), the
Fund slightly trailed both its benchmark, the Russell 2000 Index and the average
small cap fund. For the first nine months of the period, the Fund ran slightly
ahead of its benchmark and peers, but lost ground in the final quarter due
primarily to its lack of investment in Internet stocks.
[GRAPHIC APPEARS HERE]
During this period we overweighted the Fund's investments in sectors that
were experiencing strong earnings trends and relative strength, as these factors
proved superior to valuation measures in predictive power. Consumer cyclical
stocks, benefiting from the surprising strength of the U.S. economy, were
emphasized for most of the year. Specific examples of strong contributors to the
Fund's performance include clothes retailer Abercrombie and Fitch and racetrack
operator Speedway Motorsports. During the summer sell-off, we took advantage of
the fire sale prices to upgrade the quality of the portfolio. In particular, we
added technology stocks with strong growth prospects that have been market
leaders for several years. These additions, including chipmaker LSI Logic and
electronics manufacturer Jabil Circuit, led to the Fund's strong performance in
the fourth quarter of 1998.
[GRAPHIC APPEARS HERE]
Over the last four quarters, investors chose liquidity over fundamentals
and valuation, searching for perceived safety over quality. In the small cap
arena, this preference for appearance over reality has manifested itself by
driving up the price of Internet stocks, which were seen as the next hot trend.
The Fund does have exposure to the Internet, but unlike many Internet stocks,
our investments are in companies that we believe will earn money in the near
future and have a real business model which gives them competitive advantages.
We believe that the days of "anything.com" going up to extraordinary levels will
be coming to an end.
[GRAPHIC APPEARS HERE]
Historically, small stocks have been strong performers during periods of
domestic strength combined with international uncertainty. The domestic economy
has been very strong. Small companies tend to do less business overseas compared
to large multinationals such as Gillette and Coca-Cola. As quality companies are
again available at attractive prices, we believe the Fund is well positioned for
the immediate future.
<TABLE>
<CAPTION>
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Calendar
PERFORMANCE UPDATE 1Q99 Year to Date One Year Five Year Since Inception
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<S> <C> <C> <C> <C> <C>
Quantitative Small Cap Fund -8.69% -8.69% -18.80% 10.99% 16.73% (8/3/92)
Russell 2000 Index -5.42% -5.42% -16.26% 11.22% 13.06%
Lipper Small Cap Funds Average -5.98% -5.98% -15.51% 12.11%
</TABLE>
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VALUE OF $10,000 INVESTED IN QUANTITATIVE SMALL CAP (QSC) ORDINARY SHARES VS.
RUSSELL 2000
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[LINE GRAPH APPEARS HERE]
Date QSC Russell 2000
---- --- ------------
1992 $10,000 $10,000
1999 $28,016 $22,651
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FUND INFORMATION
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Ticker Symbol USBNX (ordinary)
QBNAX (institutional)
Number of Companies 65
Median Market Cap $1.12 billion
Price to Book 6.2
Price to Earnings 23.8
Assets Under Management $51 million
* The Russell 2000 Index is an unmanaged index comprised of the bottom
two-thirds of the largest 3,000 publicly traded companies in the United States.
It is widely recognized as representative of the general market for small
company stocks. Investment returns assume the reinvestment of dividends paid on
stocks comprising the Index. The Lipper returns are based on the Lipper Small
Cap Funds Average, as published in the Wall Street Journal. Lipper Mutual Funds
Averages are comprised of all of the mutual funds within their respective
investment objectives, excluding multiple share classes, and adjusted for the
reinvestment of capital gains distributions.
Past performance is no guarantee of future results. This information may be used
only when preceded or accompanied by a prospectus. Returns reflect the average
annual returns of ordinary shares of the Fund, which carry a 12b-1 fee of 50bp,
and include the effect of a 1% deferred sales charge. The value of $10,000 chart
reflects the effects of the redemption fee. Institutional shares of the Fund are
available to clients of some financial advisors without a 12b-1 fee or sales
charge. The one year, five year and since inception (1/6/93) returns for
Institutional Shares are -17.55%, 11.75% and 11.05% respectively. Share prices
will vary, and shares may be worth more or less than their original cost at the
time of sale. The investment return and principal value of an investment will
fluctuate. The Fund's portfolio is subject to change. Distributed by U.S. Boston
Capital Corporation.
<PAGE>
[LOGO OF QUANTITATIVE SMALL CAP FUND APPEARS HERE]
Investment Profile All Data as of March 31, 1999
[PHOTO OF ROBERT VON PENTZ APPEARS HERE]
Robert von Pentz
The Quantitative Small Cap Fund* is a small company fund that seeks investment
opportunities among companies with less than one billion dollars in market
capitalization. The Fund looks for stocks of companies that have superior growth
rates, but with share prices that do not fully reflect their potential.
Investment Process The Fund employs a disciplined, quantitative approach to
investing. Each and every stock in the universe of eligible investments is
examined through a variety of prisms created by a computer model. Rankings are
assigned to the stocks based on their attractiveness. Generally, companies with
records of strong earnings growth, whose earnings estimates are being revised
upwards by securities analysts, and which are valued cheaply on a relative
basis, are good candidates for inclusion in the Fund's portfolio. Risk controls
also are employed to prevent the Fund from concentrating its investments in any
particular industry sector.
Buy and Sell Discipline The purchase and sale of securities in the Fund's
portfolio primarily is driven by computer rankings. Among comparably ranked
companies, a further examination may be conducted to determine if there are
additional quantitative factors that might bear upon future performance. A
strict, passionless sell discipline is employed if a company's rankings
deteriorate.
Management The Fund is managed by Robert von Pentz, CFA, an owner and chief
equity investment officer of Columbia Partners, LLC Investment Management
located in Washington, D.C. Bob has spent most of his career designing and
implementing quantitative strategies. He earned his BA in economics and an MBA
from the University of New Mexico.
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TOP TEN HOLDINGS
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Company % Total Net Assets
BJ's Wholesale Club Inc. 2.80
LSI Logic Corp. 2.54
Vignette Corp. 2.47
Priority Healthcare Corp. 2.44
Jabil Circuit Co. 2.19
Abercrombie & Fitch Co. 2.14
Adaptec Inc. 2.05
Global Industries Ltd. 2.04
AmeriCredit Corp. 1.98
American Management Systems 1.97
*Small company stocks may be subject to a higher degree of market risk than the
securities of more established companies because they tend to be more volatile
and less liquid.
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SECTOR ALLOCATION
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[PIE CHART APPEARS HERE]
Financials 16%
Real Estate 5%
Cash and Other Assets (Net) 3%
Consumer Cyclicals 34%
Health Care 9%
Energy 2%
Technology 23%
Capital Goods 2%
Consumer Staples 4%
Basic Materials 2%
<PAGE>
[LOGO OF QUANTITATIVE MID CAP FUND APPEARS HERE]
Investment Profile All Data as of March 31, 1999
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INVESTMENT COMMENTARY
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[GRAPHIC APPEARS HERE]
For the Fund's fiscal year (the twelve months ended March 31, 1999), the
Fund (-1.08%) slightly trailed both its benchmark, the S&P 400 Index (0.45%) and
the average mid cap fund (0.19%). During the year, the most important variable
was company size, with the largest companies accounting for the bulk of the
positive returns in the Index. This was most dramatically demonstrated in the
fourth quarter of 1998 when one stock, America Online, accounted for 9% of the
return of the Index. AOL graduated to the S&P 500 at the end of the year when
its market cap was above $40 billion. The Fund benefited from overweighting
slightly larger companies, but strictly adhering to its mid cap style discipline
kept the Fund out of the better-performing large cap stocks used by other mid
cap funds.
[GRAPHIC APPEARS HERE]
Technology was one of the few sectors of the mid cap market to post
positive returns, and the Fund's overemphasis in this area helped results.
During the year, the Fund increased its technology weight from 13% to 23% and
its consumer cyclical weight from 19% to 34% and decreased its financial weight
from 18% to 11%. The portfolio is positioned for a continuation of positive
trends in consumer and technology spending. Some of the Fund's best performers
were technology stocks. Among the best were Solectron (a contract manufacturer
of electronic components), Lexmark (a producer of desktop printers) and Intuit
(the maker of the leading personal finance software package, Quicken). The
Fund's worst investments were in the healthcare area. It appears that healthcare
companies are likely to be under continued pressure from both business and
government. The Fund is now at minimum weights in this sector.
[GRAPHIC APPEARS HERE]
Earnings revisions and price strength also performed well, but the market
did not reward value, whether absolute or relative. In other words, the market
rewarded those companies that exceeded earnings expectations and then rewarded
them again because they were generally superior performers. It is not unusual
that earnings revisions and price strength are highly correlated, but what is
interesting is that the result was compounded by the capitalization bias.
Looking forward, we believe that a move away from large cap stocks is in order
with mid cap stocks the likely beneficiary.
<TABLE>
<CAPTION>
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Calendar
PERFORMANCE UPDATE 1Q99 Year to Date One Year Three Year Since Inception
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<S> <C> <C> <C> <C> <C>
Quantitative Mid Cap Fund -1.90% -1.90% -1.08% 19.47% 22.90%(3/21/95)
S&P 400 Index -6.38% -6.38% 0.45% 18.31% 21.00%
Lipper Mid Cap Funds Average -0.35% -0.35% 0.19% 13.95%
</TABLE>
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VALUE OF $10,000 INVESTED IN QUANTITATIVE MID CAP (QMC) ORDINARY SHARES VS. S&P
400
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[LINE GRAPH APPEARS HERE]
Date QMC S&P 400
---- --- -------------
1995 $10,000 $10,000
1999 $22,983 $21,556
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FUND INFORMATION
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Ticker Symbol QNIIX (ordinary)
QNIAX (institutional)
Number of Companies 45
Median Market Cap $3.9 billion
Price to Book 6.1
Price to Earnings 24.3
Assets Under Management $13 million
The S&P 400 Index is an unmanaged index comprised of stocks outside the large
capitalization bias of the S&P 500, which are chosen by Standard & Poors for
their size and industry characteristics. It is widely recognized as
representative of the general market for stocks with medium capitalizations.
Investment returns assume the reinvestment of dividends paid on stocks
comprising the Index. The Lipper results are based on the Lipper Mid Cap Funds
Average, comprised of mutual funds with medium cap investment objectives,
determined by Lipper and as published in the Wall Street Journal. Lipper Mutual
Funds Averages are comprised of all of the mutual funds within their respective
investment objectives, excluding multiple share classes, and are adjusted for
the reinvestment of capital gains distributions.
Past performance is no guarantee of future results. This information may be used
only when preceded or accompanied by a prospectus. Returns reflect the average
annual returns of ordinary shares of the Fund, which carry a 12b-1 fee of 25bp.
Institutional Shares of the Fund may be available to clients of some financial
advisors without a 12b-1 fee. The one year and since inception (4/17/95) returns
for Institutional Shares are -1.07% and 22.63% respectively. Share prices will
vary, and shares may be worth more or less than their original cost at the time
of sale. The investment return and principal value of an investment will
fluctuate. The Fund's portfolio is subject to change. Distributed by U.S. Boston
Capital Corporation.
<PAGE>
[LOGO OF QUANTITATIVE MID CAP FUND APPEARS HERE]
Investment Profile All Data as of March 31, 1999
[PHOTO OF ROBERT VON PENTZ APPEARS HERE]
Robert von Pentz
The Quantitative Mid Cap Fund seeks investment opportunities among companies
with market capitalizations from one to five billion dollars. The Fund looks for
stocks of companies that have superior growth rates, but with share prices that
do not fully reflect their potential. Companies in this strong middle range of
market capitalization often have more solid industry positions and experienced
management than smaller companies. At the same time, they frequently are in the
earlier stages of their business cycle and can produce higher sales and earnings
growth rates than larger, more established companies.
Investment Process The Fund employs a disciplined, quantitative approach to
investing. Each and every stock in the universe of eligible investments is
examined through a variety of prisms created by a computer model. Rankings are
assigned to the stocks based on their attractiveness. Generally, companies with
records of strong earnings growth, whose earnings estimates are being revised
upwards by securities analysts, and which are valued cheaply on a relative
basis, are good candidates for inclusion in the Fund's portfolio. Risk controls
also are employed to prevent the Fund from concentrating its investments in any
particular industry sector.
Buy and Sell Discipline The purchase and sale of securities in the Fund's
portfolio primarily is driven by computer rankings. Among comparably ranked
companies, a further examination may be conducted to determine if there are
additional quantitative factors that might bear upon future performance. A
strict, passionless sell discipline is employed if a company's rankings
deteriorate.
Management The Fund is managed by Robert von Pentz, CFA, an owner and chief
equity investment officer of Columbia Partners, LLC Investment Management
located in Washington, D.C. Bob has spent most of his career designing and
implementing quantitative strategies. He earned his BA in economics and an MBA
from the University of New Mexico.
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TOP TEN HOLDINGS
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Company % Total Net Assets
TJX Companies Inc. 3.06
Outback Steakhouse Inc. 3.05
Montana Power Co. 2.93
Intuit Inc. 2.86
Adaptec Inc. 2.83
BJ's Wholesale Club 2.80
Tommy Hilfiger Corp. 2.72
Solectron Corp. 2.67
United Rentals Inc. 2.61
Lexmark International Group 2.52
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SECTOR ALLOCATION
- --------------------------------------------------------------------------------
[PIE CHART APPEARS HERE]
Energy 3%
Utilities 6%
Capital Goods 9%
Consumer Staples 8%
Consumer Cyclicals 34%
Technology 23%
Health Care 4%
Cash and Other Assets (Net) 1%
Financials 11%
Basic Materials 1%
<PAGE>
[LOGO OF QUANTITATIVE GROWTH AND INCOME FUND APPEARS HERE]
Investment Profile All Data as of March 31, 1999
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INVESTMENT COMMENTARY
- ----------------------
[GRAPHIC APPEARS HERE]
For the Fund's fiscal year (the twelve months ended March 31, 1999), the
Fund (12.53%) trailed its benchmark, the S&P 500 Index (18.46%) but
substantially outperformed the average growth and income fund (5.47%). The past
year was marked by events that had dramatic effects on the stock market, but
little effect on the U.S. economy. While the general economy prospered, stock
prices were subject to drastic fluctuations, most evident in the third and
fourth quarters of 1998 when returns for the Index went from -9.95% to 21.30%.
Early on, investors became worried that computer and software sales were topping
out. The reality was that both PC and software sales continued to be strong.
These industries were hit again in late summer as fears about the Far East began
to resurface. Once again stocks like Dell, Compuware, Microsoft and Intel
climbed back up and in some cases reached new highs. By the end of the year, the
third quarter losses had been overcome, and the Fund's performance topped the
S&P 500 for the second calendar year in a row. Unfortunately, in the first
quarter of 1999, technology stocks again declined as investors' concerns turned
to first quarter earnings reports. The Fund intends to reduce its holdings in
technology gradually, waiting for an upturn in the sector to realign its
positions.
[GRAPHIC APPEARS HERE]
Energy stocks, which underperformed for most of 1998, enjoyed a resurgence
in the first quarter of 1999, driven by renewed OPEC production controls. This
shift is evident in the prices at the gas pumps. The fund is planning to
increase its weight in energy stocks to make it closer to the weighting in the
S&P 500.
[GRAPHIC APPEARS HERE]
Another recent phenomenon in the market has been the concentration of a
significant amount of returns in a small number of companies, which we
anticipate will continue. The Fund recently reduced the size of its portfolio,
concentrating on larger positions in fewer companies. Even so, the Fund will
continue to remain diversified across economic sectors and industries.
<TABLE>
<CAPTION>
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Calendar
PERFORMANCE UPDATE 1Q99 Year to Date One Year Five Year Ten Year Since Inception
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<S> <C> <C> <C> <C> <C> <C>
Quantitative Growth and Income Fund -0.89% -0.89% 12.53% 22.61% 17.47% 16.84%(5/9/85)
S&P 500 Index 4.99% 4.99% 18.46% 26.25% 18.97% 18.11%
Lipper Growth and Income Funds Average 1.77% 1.77% 5.47% 19.53% 14.92%
</TABLE>
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VALUE OF $10,000 INVESTED IN QUANTITATIVE GROWTH AND INCOME (QGI) ORDINARY
SHARES VS. S&P 500
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[LINE GRAPH APPEARS HERE]
Date S&P 500 QGI
---- ------- ---
1989 $10,000 $10,000
1999 $56,743 $50,376
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FUND INFORMATION
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Ticker Symbol USBOX (ordinary)
QGIAX (institutional)
Number of Companies 62
Average Market Cap $100.6 billion
Price to Book 7.2
Price to Earnings 28.3
Assets Under Management $74 million
The S&P 500 Index is an unmanaged index of stocks chosen by Standard & Poors for
their size and industry characteristics. It is widely recognized as
representative of the general market for stocks in the United States. Investment
returns assume the reinvestment of dividends paid on stocks comprising the
Index. The Lipper results are based on the Growth and Income Funds Average,
comprised of mutual funds with similar objectives, determined by Lipper and as
published in the Wall Street Journal. Lipper Mutual Funds Averages are comprised
of all of the mutual funds within their respective investment objectives,
excluding multiple share classes, and are adjusted for the reinvestment of
capital gains distributions.
Past performance is no guarantee of future results. This information may be used
only when preceded or accompanied by a prospectus. Returns reflect the average
annual returns of ordinary shares of the Fund, which carry a 12b-1 fee of 50bp,
and include the effects of a 1% deferred sales charge. The value of $10,000
chart reflects the effects of the redemption fee. Institutional Shares of the
Fund may be available to clients of some financial advisors without a 12b-1 fee
or sales charge. The one year, five year and since inception (3/25/91) returns
for Institutional Shares are 14.27%, 23.47% and 17.89% respectively. Share
prices will vary, and shares may be worth more or less than their original cost
at the time of sale. The investment return and principal value of an investment
will fluctuate. The Fund's portfolio is subject to change. Distributed by U.S.
Boston Capital Corporation.
<PAGE>
[LOGO OF QUANTITATIVE GROWTH AND INCOME FUND APPEARS HERE]
Investment Profile All Data as of March 31, 1999
[PHOTO OF STEVE ESIELONIS APPEARS HERE]
Steve Esielonis
The Quantitative Growth and Income Fund, created in 1985, seeks long-term growth
of capital by investing primarily in the common stocks of larger, more stable
companies. The Fund is designed to be a core United States common stock
portfolio that can be utilized either alone or in conjunction with more narrowly
differentiated strategies. The Fund employs a conservative equity investment
strategy that makes it well suited for longer term investors seeking a domestic
stock fund for retirement or college planning.
Investment Process The Fund's investment process begins with a top-down ranking
of industries based on forecasts of their relative attractiveness. Strict limits
are placed on the concentration of securities that may be purchased within any
economic and industry sector to avoid undue risk. In addition, risk controls
restrict the percentage of the Fund's assets that can be invested in the stock
of a particular company.
Buy and Sell Discipline Individual investments are selected from among a
universe of over 1,000 companies. Stocks within the portfolio are chosen based
on rankings produced by a multifactor quantitative model. Revisions to a
company's earnings estimates, which are published by financial analysts, are
closely followed and trends are quantified daily to arrive at a forecast of the
actual earnings of the company for the quarter. Each company's stock is then
evaluated on the basis of historic earnings, dividends, and asset values, which
are compared to the current price of the stock. Based on these and other
factors, a company's stock is assigned a "matrix" ranking which determines
whether it will be purchased for the Fund or retained in its portfolio.
Management The Fund is managed by a team of analysts and portfolio managers at
State Street Global Advisors located in Boston, Massachusetts. The team at State
Street responsible for the day-to-day management of the portfolio includes
Steven M. Esielonis, Douglas T. Holmes, CFA and Charles Babin, CFA.
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TOP TEN HOLDINGS
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Company % Total Net Assets
Microsoft Corp. 4.94
Cisco Systems Inc. 3.89
General Electric Co. 3.85
MCI Worldcom, Inc. 3.74
Pfizer Inc. 3.66
Schering Plough Corp. 3.55
Dell Computer Corp. 2.59
Home Depot Inc. 2.56
Walmart Stores Inc. 2.48
Koninklijke Ahold NV 2.46
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SECTOR ALLOCATION
- --------------------------------------------------------------------------------
[PIE CHART APPEARS HERE]
Financials 13%
Capital Goods 1%
Communication Services 6%
Technology 37%
Consumer Cyclicals 13%
Consumer Staples 8%
Health Care 18%
Cash and Other Assets (Net) 3%
Energy 1%
<PAGE>
[LOGO OF QUANTITATIVE INTERNATIONAL EQUITY FUND APPEARS HERE]
Investment Profile All Data as of March 31, 1999
- ---------------------
INVESTMENT COMMENTARY
- ---------------------
[GRAPHIC APPEARS HERE] For the Fund's fiscal year (the twelve months ended March
31, 1999), the Fund returned (-5.73%) against a modest (6.06%) for the Fund's
benchmark, the Morgan Stanley EAFE Index, and (0.02%) for the average developed
markets fund. With the exception of Finland, a small market that rose 95% over
this period, none of the developed international equity markets experienced
unusually large increases or declines.
[GRAPHIC APPEARS HERE] Unlike recent years, the Pacific region outperformed
Europe. Japan, the largest market in Asia, led the region with a 15.4% return,
in large part attributable to a strong yen against the U.S. dollar. The largest
three European markets, the U.K., Germany and France, returned 3.9%, 0.3% and
11.0% respectively. European returns were hurt by the introduction of the Euro
in the first quarter of 1999, as the Euro lost 8% against the U.S. dollar during
the quarter.
[GRAPHIC APPEARS HERE] The Fund's under-performance versus the EAFE Index over
the past year resulted from the specific stocks owned. Country selection over
the period produced neither added nor lost value relative to EAFE. Our valuation
models, which emphasize good values and improving fundamentals, led to the
selection of stocks selling at lower prices with improving earnings outlooks.
Those stocks did not perform as well in total as the higher priced, larger
capitalization stocks that outpaced the rest of the market. This is similar to
the large cap bias visible over the last two years in the U.S. domestic market.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Calendar
PERFORMANCE UPDATE 1Q99 Year to Date One Year Five Year Ten Year Since Inception
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Quantitative International Equity Fund -1.73% -1.73% -5.73% 3.36% 3.09% 3.53% (7/31/87)
MSCI EAFE Index 1.39% 1.39% 6.06% 8.74% 5.66% 6.75%
Lipper International Funds Average 1.54% 1.54% 0.02% 7.94% 8.81%
</TABLE>
- --------------------------------------------------------------------------------
VALUE OF $10,000 INVESTED IN QUANTITATIVE INTERNATIONAL EQUITY ("QIE") ORDINARY
SHARES VS. EAFE
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
EAFE QIE
------- -------
1990 $10,000 $10,000
1999 $17,569 $13,454
- ----------------
FUND INFORMATION
- ----------------
Ticker Symbol USBFX (ordinary)
QIEAX (institutional)
Number of Companies 123
Median Market Cap $28.81 billion
Price to Book 3.42
Price to Earnings 22.1
Assets Under Management $24 million
The Morgan Stanley Capital International Europe, Australasia, and Far East
("EAFE") Index is an unmanaged index comprised of stocks in countries other than
the United States. It is widely recognized as representative of the general
market for developed foreign markets. The Lipper results are based on the
International Funds Average, comprised of mutual funds with similar objectives,
determined by Lipper and as published in the Wall Street Journal. Lipper Mutual
Funds Averages are comprised of all of the mutual funds within their respective
investment objectives, excluding multiple share classes, and are adjusted for
the reinvestment of capital gains distributions.
Past performance is no guarantee of future results. This information may be used
only when preceded or accompanied by a prospectus. Returns reflect the average
annual returns of ordinary shares of the Fund, which carry a 12b-1 fee of 50bp,
and include the effects of a 1% deferred sales charge. The value of $10,000
chart reflects the effects of the redemption fee. Institutional shares may be
available to clients of some financial advisors without a 12b-1 fee or sales
charge. The one year and since inception (8/25/94) returns for Institutional
Shares are -4.34% and 2.74% respectively. Share prices will vary, and shares may
be worth more or less than their original cost at the time of sale. The
investment return and principal value of an investment will fluctuate. The
Fund's portfolio is subject to change. Distributed by U.S. Boston Capital
Corporation.
<PAGE>
[LOGO OF QUANTITATIVE INTERNATIONAL EQUITY FUND APPEARS HERE]
INVESTMENT PROFILE All Data as of March 31, 1999
[PHOTO OF NORMAN H. MELTZ APPEARS HERE]
Norman H. Meltz
The Quantitative International Equity Fund*, created in 1987, provides investors
with the opportunity to participate in growth potential of companies located in
developed foreign countries. By investing in ten or more developed foreign
countries, the Fund attempts to take advantage of broad international economic
trends. Importantly, while the Fund's performance is affected by global and
international trends, its returns historically have not been highly correlated
to those of the United States' stock markets.
Investment Process The Fund generally owns stocks of over 100 non-U.S. companies
located in the twenty-one countries comprising the Morgan Stanley Europe,
Australasia and Far East (EAFE) Index. In addition, the Fund may also invest a
portion of its assets in emerging markets, such as Argentina and Turkey. This
diversification within the Fund, coupled with risk controls that limit the
amount of assets that can be invested in certain countries, like Japan, reduce
the effect that the performance of any single foreign country may have on the
Fund's return.
Buy and Sell Discipline The investment process for the Fund relies upon
sophisticated quantitative computer models. The Fund utilizes specific models
for each individual country. In some countries, however, the Fund's models may
emphasize growth or value characteristics, depending on which factors have been
the predominate predictors of share appreciation in a particular market over
time. Individual portfolio positions are examined regularly and country
allocations may be adjusted to reflect current forecasts for the market or
imbalances resulting from performance.
Management The Fund is managed by Independence International Associates, Inc., a
Boston, Massachusetts money manager that specializes in the management of
international equity portfolios. The portfolio manager for the Fund is Norman H.
Meltz.
- ----------------
TOP TEN HOLDINGS
- ----------------
Company % Total Net Assets
Irish Life 2.73
Honda Motor 2.65
Sankyo 2.43
Bank of Tokyo Mitsubishi Bank 2.37
UBS 2.22
Elec. De Portugal 2.14
Nokia 2.10
Karstadt 2.02
British Telecom 1.94
Glaxo Wellcome 1.91
*Investing in foreign securities may involve certain additional risks, including
exchange rate fluctuations, less liquidity, greater volatility and less
regulation.
- --------------------------------------------------------------------------------
COUNTRY ALLOCATION
- --------------------------------------------------------------------------------
[PIE CHART APPEARS HERE]
France 9%
United Kingdom 22%
Cash and Other Assets (Net) 1%
Japan 23%
Germany 11%
Switzerland 8%
Portugal 3%
Australia 4%
Belguim 3%
Ireland 5%
Others* (2% or less) 11%
*Austria, Finland, Italy, Netherlands, Singapore, Spain, Hong Kong, Sweden
<PAGE>
[LOGO OF QUANTITATIVE EMERGING MARKETS FUND APPEARS HERE]
INVESTMENT PROFILE All Data as of March 31, 1999
- ---------------------
INVESTMENT COMMENTARY
- ---------------------
[GRAPHIC APPEARS HERE] For the Fund's fiscal year (the twelve months ended
March 31, 1999), the Fund surpassed most of its peers and returned nearly 11%
above the average emerging markets fund. The Fund also outperformed the MSCI
Index for emerging markets by 5% and has beaten the Index in each of the last
four calendar years (1995-1998). Both the Fund and emerging markets in general
have achieved a strong rebound in both the past two quarters, a substantial
recovery from the first two quarters of the fiscal year and the best two-quarter
performance since the Fund's inception in 1994. Considering the currency and
debt crisis of the past year, this is a welcome indication of improving
opportunities.
[GRAPHIC APPEARS HERE] Over the course of the fiscal year, country allocation
was the most significant factor in the Fund's performance relative to the MSCI
Index. The Fund's tiered equal weighted allocation strategy underweights the
largest markets. Markets where the Fund was not invested due to internal unrest
or questionable protection for foreign investments (Russia, Czech Republic,
Indonesia, Pakistan, and Venezuela) significantly under-performed, which
increased the Fund's relative performance against funds including securities
from these countries.
[GRAPHIC APPEARS HERE] The country allocation adversely affected the Fund's
relative performance during the six month revival, when the larger emerging
markets produced the greater returns. Korea led with an over 100% return,
followed by nearly 40% in Mexico and Greece, with India, Taiwan, South Africa
and Chile all over 10%. This group also included Brazil, which managed a
positive return despite a 40% currency devaluation. These countries comprised 8
of the 9 largest country positions of the Fund.
[GRAPHIC APPEARS HERE] The Fund has employed a stock selection strategy based
upon research indicating that a higher return may accrue over time to higher
value securities where earnings fundamentals are improving. The strategy
involves selecting stocks having higher value relative to forecast earnings,
growth, and asset values within each market. This strategy is similar to those
used with success in developed markets, but subject to the availability of
forecasts within emerging markets. Some of the main contributors to performance
this year were Bank Itau in Brazil and Credit Bank in Greece which have high
growth in deposits, and opportunities to purchase newly privatized state owned
banks.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Calendar
PERFORMANCE UPDATE 1Q99 Year to Date One Year Three Year Since Inception
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Quantitative Emerging Markets Fund 10.94% 10.94% -14.27% -7.64% -8.16% (10/3/94)
Morgan Stanley EMG Index 12.82% 12.82% -19.20% -8.77% -9.00%
Lipper Emerging Markets Fund Average 7.84% 7.84% -25.45% -7.77%
</TABLE>
- --------------------------------------------------------------------------------
VALUE OF $10,000 INVESTED IN QUANTITATIVE EMERGING MARKETS (QEM) ORDINARY SHARES
AND MS EMG
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
QEM EMG
1995 $10,000 $10,000
1999 $ 6,809 $ 6,541
- ----------------
FUND INFORMATION
- ----------------
Ticker Symbol QFFOX (ordinary)
QEMAX (institutional)
Number of Companies 124
Assets Under Management $10 million
The Morgan Stanley EMG Index is published by Morgan Stanley. Both are widely
recognized as representatives of the general market for emerging markets. The
Lipper results are based on the Lipper Emerging Markets Funds Average, comprised
of mutual funds with similar objectives, determined by Lipper and as published
in the Wall Street Journal. Lipper Mutual Funds Averages are equally weighted,
comprised of all of the mutual funds within their respective investment
objectives, excluding multiple share classes, and are adjusted for the
reinvestment of capital gains distributions.
Past performance is no guarantee of future results. This information may be used
only when preceded or accompanied by a prospectus. Returns reflect the average
annual returns of ordinary shares of the Fund, which carry a 12b-1 fee of 50bp,
and include the effects of a 1% deferred sales charge. The value of $10,000
chart reflects the effects of the redemption fee. Institutional shares may be
available to clients of some financial advisors without a 12b-1 fee or sales
charge.The one year and since inception (4/2/96) returns for Institutional
Shares are -12.93% and -7.24% respectively. Share prices will vary, and shares
may be worth more or less than their original cost at the time of sale. The
investment return and principal value of an investment will fluctuate. The
Fund's portfolio is subject to change. Distributed by U.S. Boston Capital
Corporation.
<PAGE>
[LOGO OF QUANTITATIVE EMERGING MARKETS FUND APPEARS HERE]
INVESTMENT PROFILE All Data as of March 31, 1999
[PHOTO OF NORMAN H. MELTZ APPEARS HERE]
Norman H. Meltz
The Quantitative Emerging Markets Fund* is designed to afford investors the
opportunity to participate in the overall growth potential of emerging market
countries. Over twenty countries located in Europe, Latin America, Africa, the
Middle East and Asia are classified as emerging markets. Many of these countries
experienced substantial growth in per capita income and domestic production in
the 1980s and 90s. Moreover, continuing improvements in infrastructure are
likely to make these countries increasingly productive in years to come.
Investment Process To minimize investors' exposure to the annual performance
volatility experienced by individual emerging markets, the Fund invests at all
times in eight or more countries. At least two, and generally three, broad
geographic regions, such as Latin America, Asia and Europe, will be represented
in the Fund's portfolio. Within a geographic region, investments are allocated
equally by the manager to selected emerging markets.
Buy and Sell Discipline Systematic rebalancing of portfolio positions among
countries assures that diversification will be maintained at desired levels. The
Fund has historically employed quantitative investment models to select
representative stocks within each country whose collective performance are most
likely to mirror the overall performance of that's country's stock market. The
Fund supplemented this approach with an investment model designed to identify
the most attractive stocks in each country on the basis of value and improving
fundamentals.
Management The Fund is managed by Independence International Associates, Inc., a
Boston, Massachusetts money manager that specializes in the management of
international equity portfolios. The portfolio managers for the Fund are Norman
H. Meltz and Dennis Fogarty.
- ----------------
TOP TEN HOLDINGS
- ----------------
Company % Total Net Assets
Telefonos de Mexico 3.25
Bezeq Israel Telecom 2.71
National Bank of Greece 2.50
Turkiye Is Bankasi 2.10
Samsung Electronic 2.04
Alpha Credit Bank 1.89
Koor Industrial 1.82
OTE (Hellenic Telecom) 1.72
Telefonica del Peru 1.63
Korea Elec. Power 1.61
*Investing in foreign securities may involve certain additional risks, including
exchange rate fluctuations, less liquidity, greater volatility and less
regulation. The risks may be magnified for emerging markets.
- --------------------------------------------------------------------------------
COUNTRY ALLOCATION
- --------------------------------------------------------------------------------
[PIE CHART APPEARS HERE]
Cash and Other Assets (Net) 2%
Brazil 8%
Mexico 9%
Israel 6%
Korea 8%
Turkey 5%
Philippines 4%
South Africa 7%
Other* 11%
Poland 4%
Greece 8%
Argentina 7%
Chile 7%
India 7%
Taiwan 7%
*China, Hungary, Peru, Thailand
<PAGE>
[LOGO OF QUANTITATIVE FOREIGN VALUE FUND APPEARS HERE]
INVESTMENT PROFILE All Data as of March 31, 1999
- ---------------------
INVESTMENT COMMENTARY
- ---------------------
[GRAPHIC APPEARS HERE] From July 1, 1998, when the Quantitative Foreign Value
Fund began to fully implement its investment strategy, through March 31, 1999,
the Fund returned 13.62% against 4.94% for the Fund's benchmark, the Morgan
Stanley EAFE Index, and -0.88% for the average developed markets fund. The most
significant event affecting the Fund's portfolio was the widening gap between
value investments and growth investments. The Fund has maintained its value
discipline in a market environment that has witnessed the widest gap between
growth and value investments in decades. The stocks in the Fund's portfolio
trade at half the price-to-earnings and price-to-book value multiples of the
stocks comprising the EAFE Index.
[GRAPHIC APPEARS HERE] However, better value does not necessarily translate into
the best short-term performance, as we have seen over the last six months. As
has been the case in domestic markets, investors in the developed foreign
markets have opted for the perceived security of larger companies and
disregarded smaller companies with better fundamentals. It is our belief,
however, that value investing will ultimately deliver better performance.
[GRAPHIC APPEARS HERE] While the Fund has consistently followed a value
discipline, the nature of the companies the Fund has invested in has changed
over time. During the initial period the Fund was in operation, the quantitative
research indicated a strategy of avoiding overvalued sectors of the market.
During that time, the best sectors had a higher than normal exposure to
companies that exhibited more cyclical price and earnings behavior. These
investments contributed to the decline in the Fund's performance during the
third quarter of 1998. Many non-cyclical companies became good values at the
same time, at which point the Fund shifted from some cyclical companies toward
those with more earnings stability.
[GRAPHIC APPEARS HERE] Performance was driven primarily by stock selection and
to a lesser extent by the Fund's overweight position in Finland, Scandinavia and
Europe as a whole, and underweight positions in Japan, France, and the UK. In
the first quarter of 1999, we have seen several catalysts positively affect the
values of many investments in the portfolio. This trend is continuing and we
view the general outlook as quite encouraging.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Calendar
PERFORMANCE UPDATE 1Q99 Year to Date Six Months Since Inception
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Quantitative Foreign Value Fund -3.24% -3.24% 5.33% 16.99% (5/18/98)
MSCI EAFE Index 1.39% 1.39% 22.34% 4.94%
Lipper International Funds Average 1.54% 1.54% 18.22%
</TABLE>
- --------------------------------------------------------------------------------
VALUE OF $10,000 INVESTED IN QUANTITATIVE FOREIGN VALUE (QFV) ORDINARY SHARES
VS. EAFE
- --------------------------------------------------------------------------------
[BAR GRAPH APPEARS HERE]
EAFE QFV
------- -------
1998 $10,000 $10,000
1999 $10,696 $ 8,300
- ----------------
FUND INFORMATION
- ----------------
Ticker Symbol NONE
Number of Companies 41
Price to Book 1.38
Price to Earnings 12.9
Assets Under Management $8 million
The Morgan Stanley Capital International Europe, Australasia and Far East
("EAFE") Index is an unmanaged index comprised of stocks located in countries
other than the United States. It is widely recognized as representative of the
general market for developed foreign markets. The Lipper results are based on
the International Funds Averages, comprised of all the mutual funds with similar
objectives, determined by Lipper and as published by the Wall Street Journal.
Lipper Mutual Funds Averages are comprised of all of the mutual funds within
their respective investment objectives, excluding multiple share classes, and
are adjusted for the reinvestment of capital gains distributions.
Past performance is no guarantee of future results. Performance for the Fund is
for a limited period of time and since inception returns are not annualized.
This information may be used only when preceded or accompanied by a prospectus.
Returns reflect the average annual returns of ordinary shares of the Fund, which
carry a 12b-1 fee of 25bp, and include the effects of a 1% deferred sales
charge. The value of $10,000 chart reflects the effects of the redemption fee.
Institutional shares may be available to clients of some financial advisors
without a 12b-1 fee or sales charge. The year-to-date and since inception
(12/18/98) returns for the Institutional Shares are -3.01% and -0.71%
respectively. Share prices will vary, and shares may be worth more or less than
their original cost at the time of the sale. The investment return and principal
value of an investment will fluctuate. The Fund's portfolio is subject to
change. Distributed by U.S. Boston Capital Corporation.
<PAGE>
[LOGO OF QUANTITATIVE FOREIGN VALUE FUND APPEARS HERE]
INVESTMENT PROFILE All Data as of March 31, 1999
[PHOTO OF BERNARD R. HORN, JR. APPEARS HERE]
Bernard R. Horn, Jr.
The Quantitative Foreign Value Fund* provides investors with the opportunity to
participate in the growth potential of companies predominantly located in
developed foreign countries. Importantly, the returns of the developed foreign
markets historically have not been highly correlated to those of the United
States' stock markets, as represented by broad-based stock indices.
Investment Process The Fund will generally own stocks of 25-40 non-U.S.
companies located in the twenty-one countries comprising the Morgan Stanley
Europe, Australasia and Far East (EAFE) Index. In addition, the Fund also may
invest a portion of its assets in emerging markets, such as Mexico and Thailand.
The diversification within the Fund, coupled with the fact that the operation of
the Fund's investment model will generally lead the Fund to be invested in 10 or
more countries, reduces the likelihood that negative performance of a single
country will significantly impact the Fund's return.
Buy and Sell Discipline The investment process for the Fund combines both
quantitative and fundamental techniques. The Fund's approach is primarily
"bottom up", searching for individual stocks with strong, undervalued cash
flows, regardless of location or industry. The Fund uses proprietary computer
models to rank countries and industries on the basis of value and to narrow a
universe of 12,000 companies down to 300 to 500 deserving of further
consideration. Recognizing the difficulty of getting complete information about
companies in some foreign markets, the Fund supplements the screening process by
performing in-depth financial and fundamental analysis.
Management The Fund is managed by Bernard R Horn, Jr., President of Polaris
Capital Management, Inc., a Boston, Massachusetts money manager that specializes
in the management of international equity portfolios. Mr. Horn brings nearly 20
years of international investment experience to the Fund.
- ----------------
TOP TEN HOLDINGS
- ----------------
Company % Total Net Assets
Total Access Communication 4.30
Takefuji Corp. 4.19
Orkla ASA 3.66
Crean (James) PLC 3.50
RHI AG 3.35
Neptune Maritime OY 3.35
Toyota Motor Corp. 3.31
Rautaruukki OY 3.27
Crest Nicholson PLC 3.03
Veba AG 3.00
*Investing in foreign securities may involve certain additional risks, including
exchange rate fluctuations, less liquidity, greater volatility and less
regulation.
- --------------------------------------------------------------------------------
COUNTRY ALLOCATION
- --------------------------------------------------------------------------------
[PIE CHART APPEARS HERE]
Spain 7%
Norway 4%
Austria 3%
South Africa 8%
Finland 14%
Ireland 4%
Japan 10%
Germany 9%
France 3%
U.K 13%
Other* 11%
Netherlands 14%
*Canada, Denmark, Sweden
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
PORTFOLIO OF INVESTMENTS March 31, 1999
QUANTITATIVE SMALL CAP FUND
- --------------------------------------------------------------------------------
COMMON STOCK--97.2%
Shares Value
APPAREL--1.5%
Chicos FAS Inc. (a) 36,055 $ 775,182
----------
BANKS--1.2%
Astoria Financial Corporation 12,730 636,500
----------
BEVERAGES--1.3%
Coors (Adolph) Company 13,010 702,540
----------
BROADCASTING--1.7%
TCA Cable TV Inc. 19,985 869,347
----------
BUILDING MATERIALS--2.5%
Lone Star Industries Inc. 19,390 601,090
Southdown Inc. 13,395 719,144
----------
1,320,234
----------
COMMUNICATIONS--1.7%
ANTEC Corporation (a) 29,455 633,282
Powerwave Technologies Inc. (a) 8,365 237,357
----------
870,639
----------
COMPUTER PERIPHERALS--6.5%
Learning Company Inc. (a) 34,935 1,013,115
Rational Software Corporation (a) 33,245 891,382
Siebel Systems Inc. (a) 20,085 954,037
Xircom Inc. (a) 21,880 549,735
----------
3,408,269
----------
COMPUTER SOFTWARE--2.5%
Vignette Corporation (a) 17,145 1,290,161
----------
ELECTRICAL EQUIPMENT--0.7%
Watsco Inc. 24,472 357,903
----------
ELECTRONIC COMPONENTS--6.8%
Adaptec Inc. (a) 47,005 1,072,301
Jabil Circuit Inc. (a) 28,310 1,146,555
LSI Logic Corporation (a) 42,585 1,328,120
----------
3,546,976
----------
ELECTRONICS--1.4%
Gentex Corporation (a) 34,505 744,014
----------
ENGINEERING & BUSINESS SERVICES--16.6%
American Management Systems Inc. (a) 30,225 1,031,428
Clarify Inc. (a) 14,835 395,909
Complete Business Solutions Inc. (a) 32,365 635,163
Consolidated Graphics Inc. (a) 11,700 675,675
Henry (Jack) & Associates Inc. 19,005 698,434
ITT Educational Services Inc. (a) 11,600 435,725
Inktomi Corporation (a) 10,460 896,945
MPW Industrial Services Group Inc. (a) 41,755 344,479
Nielsen Media Research Inc. (a) 36,005 888,873
Prepaid Legal Services Inc. (a) 31,805 779,223
Reynolds & Reynolds Company 50,185 953,515
TMP Worldwide Inc. (a) 14,635 948,531
----------
8,683,900
----------
ENTERTAINMENT & RECREATION--3.2%
Action Performance Companies Inc. (a) 19,410 584,726
Championship Auto Racing Team (a) 22,960 668,710
Speedway Motorsports Inc. (a) 10,710 441,788
----------
1,695,224
----------
FINANCIAL SERVICES--11.0%
ARM Financial Inc. 48,315 721,705
American Capital Strategies Ltd. 36,900 631,912
AmeriCredit Corporation (a) 78,860 1,035,037
Ameritrade Holding Corporation (a) 14,925 921,619
E Trade Group Inc. (a) 13,490 786,636
Legg Mason Inc. 26,445 890,866
Southwest Securities Group Inc. 26,995 762,609
----------
5,750,384
----------
FOOD & BEVERAGES--3.1%
Earthgrains Company 28,460 631,456
Flowers Industries Inc. 39,850 981,306
----------
1,612,762
----------
HEALTH CARE--GENERAL--8.9%
Biomatrix Inc. 10,520 820,560
Orthodontic Centers of America Inc. (a) 49,535 780,176
Priority Healthcare Corporation (a) 28,205 1,276,276
Sunrise Assisted Living Inc. (a) 18,435 839,945
Sybron International Corporation
Wisconsin (a) 37,945 948,625
----------
4,665,582
----------
INSURANCE--3.3%
Annuity and Life Real Estate Holdings 37,420 855,983
Mutual Risk Management Ltd. 23,405 895,241
----------
1,751,224
----------
LODGING & RESTAURANTS--2.4%
Outback Steakhouse Inc. (a) 24,357 797,692
Papa John's International Inc. (a) 9,900 436,838
----------
1,234,530
----------
MISCELLANEOUS--1.0%
United Rentals Inc. (a) 17,548 500,118
----------
MULTI-INDUSTRY--1.2%
Select Comfort Corporation (a) 21,825 608,372
----------
PETROLEUM--EQUIPMENT & SERVICES--2.4%
Global Industries Inc. (a) 105,260 1,065,758
Veritas DGC Inc. (a) 14,910 211,536
----------
1,277,294
----------
REAL ESTATE--5.4%
Boston Properties Inc. 27,290 863,046
Capital Automotive Real Estate Investment
Trust 19,300 240,044
Entertainment Properties Trust 52,465 905,021
Felcor Lodging Trust Inc. 35,020 812,026
----------
2,820,137
----------
RETAIL TRADE--10.9%
Abercrombie and Fitch Company (a) 12,180 1,120,560
Barnes & Noble Inc. (a) 22,900 735,663
BJ's Wholesale Club Inc. (a) 55,400 1,464,638
Claire's Stores Inc. 29,370 884,771
Furniture Brands International Inc. (a) 33,195 734,439
Men's Wearhouse Inc. (a) 26,497 765,101
----------
5,705,172
----------
TOTAL COMMON STOCK
(Cost $45,132,330) 50,826,464
----------
- --------------------------------------------------------------------------------
13
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
PORTFOLIO OF INVESTMENTS March 31, 1999
QUANTITATIVE SMALL CAP FUND--Continued
- --------------------------------------------------------------------------------
SHORT TERM INVESTMENTS--0.3%
Par Value Value
State Street Bank & Trust Repurchase Agreement
3.50%, 4/1/99, (Dated 3/31/99), Collateralized by
$120,000 4/1/99, Treasury Bond 7.250%, 5/15/16,
Market Value $140,550, (Cost $135,000) Repurchase
Proceeds $135,013. $ 135,000 $ 135,000
-----------
TOTAL INVESTMENTS--97.5%
(Cost $45,267,330) (b) 50,961,464
OTHER ASSETS & LIABILITIES (NET)--2.5% 1,323,422
-----------
NET ASSETS--100% $52,284,886
===========
(a) Non-income producing security.
(b) At March 31, 1999, the unrealized appreciation of investments based on
aggregate cost for federal tax purposes of $45,576,801 was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost $ 8,397,216
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value (3,012,553)
-----------
Net unrealized appreciation $ 5,384,663
===========
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
14
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
PORTFOLIO OF INVESTMENTS March 31, 1999
QUANTITATIVE MID CAP FUND
- --------------------------------------------------------------------------------
COMMON STOCK--99.6%
Shares Value
AEROSPACE / DEFENSE--4.7%
Cordant Technologies Inc. 7,320 $ 291,427
Gulfstream Aerospace Corporation(a) 7,570 328,349
----------
619,776
----------
AIR TRAVEL--2.0%
Southwest Airlines Company 8,832 267,168
----------
APPAREL--2.7%
Tommy Hilfiger Corporation (a) 5,210 358,839
----------
BANKS--4.2%
Dime Bancorporation Inc. 12,175 282,308
Union Planters Corporation 6,290 276,367
----------
558,675
----------
COMPUTER PERIPHERALS--9.8%
Citrix Systems Inc. (a) 7,810 297,756
Intuit (a) 3,705 376,984
Lexmark International Group Inc. (a) 2,975 332,456
Rational Software Corporation (a) 10,415 279,252
----------
1,286,448
----------
DRUGS & HEALTH CARE--4.0%
Priority Healthcare Corporation (a) 5,195 235,074
Watson Pharmaceuticals Inc. (a) 6,715 296,299
----------
531,373
----------
ELECTRONIC COMPONENTS--10.5%
Adaptec Inc. (a) 16,345 372,870
Analog Devices Inc. (a) 5,135 152,766
Micron Technology Inc. (a) 4,140 199,755
Solectron Corporation (a) 7,240 351,593
Vitesse Semiconductor Corporation (a) 6,035 305,522
----------
1,382,506
----------
ENGINEERING & BUSINESS SERVICE--4.8%
Cintas Corporation 4,985 325,894
Inktomi Corporation (a) 3,590 307,843
----------
633,737
----------
FOOD & BEVERAGES--6.3%
Flowers Industries Inc. 11,280 277,770
Hershey Foods Corporation 4,585 256,760
U.S. Foodservice (a) 6,365 295,972
----------
830,502
----------
FOREST PRODUCTS--1.7%
Georgia-Pacific Corporation 2,995 222,379
----------
GAS & ELECTRIC UTILITIES--6.5%
American Power Conversion Corporation (a) 8,805 237,735
Montana Power Company 5,240 385,468
Washington Gas Light Company 10,160 229,870
----------
853,073
----------
HOUSEHOLD DURABLES--1.8%
Shaw Industries Inc. (a) 12,840 237,540
----------
INSURANCE--4.7%
Nationwide Financial Services Inc. 7,140 299,880
Provident Companies Inc. 9,090 314,173
----------
614,053
----------
LODGING & RESTAURANTS--3.1%
Outback Steakhouse Inc. (a) 12,285 402,334
----------
MISCELLANEOUS--2.6%
United Rentals Inc. (a) 12,080 344,280
----------
MOTOR VEHICLE PARTS--2.3%
Delphi Automotive Systems Corporation 17,165 304,679
----------
PETROLEUM--2.8%
Diamond Offshore Drilling Inc. 5,585 176,626
McDermott (J. Ray) S.A. (a) 6,575 196,428
----------
373,054
----------
PUBLISHING--4.6%
Readers Digest Association Inc. 9,975 313,589
Valassis Communications Inc. (a) 5,760 298,080
----------
611,669
----------
REAL ESTATE--1.6%
Crescent Real Estate Equities 9,650 207,475
----------
RETAIL TRADE--16.9%
Abercrombie and Fitch Company (a) 3,150 289,800
Bed Bath & Beyond Inc. (a) 8,845 322,843
BJ's Wholesale Club Inc. (a) 13,960 369,067
Family Dollar Stores Inc. 11,575 266,225
Food Lion Inc. 27,300 251,245
Ross Stores Inc. 7,280 318,955
TJX Companies Inc. 11,845 402,730
----------
2,220,865
----------
TRANSPORTATION--2.0%
Kansas City Southern Industries Inc. 4,670 266,190
----------
TOTAL COMMON STOCK
(Cost $11,248,904) 13,126,615
----------
- --------------------------------------------------------------------------------
15
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
PORTFOLIO OF INVESTMENTS March 31, 1999
QUANTITATIVE MID CAP FUND--Continued
- --------------------------------------------------------------------------------
SHORT TERM INVESTMENTS--1.1%
Par Value Value
State Street Bank & Trust Repurchase Agreement 3.50%,
4/1/99, (Dated 3/31/99), Collateralized by $145,000
U.S. Treasury Bond 6.125%, 12/31/01, Market Value
$150,800, (Cost $143,000) Repurchase Pro-
ceeds $143,014. $ 143,000 $ 143,000
-----------
TOTAL INVESTMENTS--100.7%
(Cost $11,391,904) (b) 13,269,615
OTHER ASSETS & LIABILITIES (NET)--(0.7)% (96,021)
-----------
NET ASSETS--100% $13,173,594
===========
(a) Non-income producing security.
(b) At March 31, 1999, the unrealized appreciation of investments based on
aggregate cost for federal tax purposes of $11,388,713 was as follows:
Aggregate gross unrealized appreciation for all invest-
ments in which there is an excess of value over tax cost $ 2,363,111
Aggregate gross unrealized depreciation for all invest-
ments in which there is an excess of tax cost over value (482,209)
-----------
Net unrealized appreciation $ 1,880,902
===========
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
16
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
PORTFOLIO OF INVESTMENTS March 31, 1999
QUANTITATIVE GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
COMMON STOCK--97.7%
Shares Value
AUTO & AEROSPACE--1.8%
Daimler Chrysler AG Stuttgart 15,774 $ 1,353,606
-----------
BANKS--4.4%
AmSouth Bancorporation 9,675 440,212
BankAmerica Corporation 15,616 1,102,880
Chase Manhattan Corporation 19,900 1,618,119
PNC Bank Corporation 3,000 166,688
-----------
3,327,899
-----------
BEVERAGES--0.7%
PepsiCo Inc. 13,800 540,788
-----------
BROADCASTING--1.1%
Comcast Corporation 13,000 818,187
-----------
COMMUNICATIONS--6.1%
Ericsson (LM) Telecommunications (c) 33,500 797,719
General Instrument Corporation (a) 36,000 1,091,250
Lucent Technologies Inc. 7,688 828,382
Nokia Corporation (c) 8,700 1,355,025
Tellabs Inc. (a) 5,800 566,950
-----------
4,639,326
-----------
COMPUTER PERIPHERALS--14.7%
Compuware Corporation (a) 70,600 1,685,575
E M C Corporation Mass (a) 10,600 1,354,150
Lexmark International Group Inc. (a) 15,600 1,743,300
Microsoft Corporation (a) 41,600 3,728,400
New Era Of Networks Inc. (a) 17,800 1,205,950
Oracle Corporation (a) 51,600 1,360,950
-----------
11,078,325
-----------
COMPUTERS--10.3%
Apple Computer (a) 38,300 1,376,406
Cisco Systems Inc. (a) 26,800 2,936,275
Compaq Computer Corporation 47,500 1,505,156
Dell Computer Corporation (a) 47,800 1,953,825
-----------
7,771,662
-----------
COSMETICS--1.1%
Avon Products Inc. 16,900 795,356
-----------
DRUGS & HEALTH CARE--17.1%
Allergan Inc. 11,000 966,625
Amgen Inc. 12,000 898,500
Biogen Inc. (a) 6,000 685,875
Bristol-Myers Squibb Company 10,200 655,988
Cardinal Health Inc. 14,691 969,606
Elan PLC (a) (c) 15,500 1,081,125
Merck & Company Inc. 5,400 433,013
Pharmacia & Upjohn Inc. 29,100 1,815,113
Pfizer Inc. 19,900 2,761,125
Schering-Plough Corporation 48,400 2,677,125
-----------
12,944,095
-----------
ELECTRICAL EQUIPMENT--3.9%
General Electric Company 26,300 2,909,437
-----------
ELECTRONIC COMPONENTS--5.5%
Applied Materials Inc. (a) 25,000 1,542,188
Intel Corporation 8,500 1,012,563
Linear Technology Corporation 24,000 1,230,000
SCI Systems Inc. (a) 12,900 382,162
-----------
4,166,913
-----------
FINANCIAL SERVICES--2.8%
Associates First Capital Corporation 15,700 706,500
Capital One Financial Corporation 5,600 845,600
Federal National Mortgage Association 8,200 567,850
-----------
2,119,950
-----------
HOUSEHOLD PRODUCTS--0.2%
Dial Corporation 5,200 178,750
-----------
INSURANCE--3.7%
American International Group Inc. 5,800 699,625
AXA UAP (c) 22,100 1,464,125
Fremont General Corporation 31,400 598,563
-----------
2,762,313
-----------
LODGING & RESTAURANTS--1.7%
Tricon Global Restaurants Inc. (a) 18,300 1,285,575
-----------
MEDICAL SUPPLIES--0.8%
Medtronic Inc. 8,100 581,175
-----------
MOTOR VEHICLE PARTS--0.5%
Tower Automotive Inc. (a) 20,100 374,362
-----------
PETROLEUM--1.2%
BP Amoco PLC (c) 5,734 578,776
Barrett Resources Corporation (a) 13,700 343,356
-----------
922,132
-----------
RETAIL TRADE--12.5%
Dayton Hudson Corporation 22,100 1,472,413
Gap Inc. 5,550 373,584
Home Depot Inc. 31,100 1,935,975
Koninklijke Ahold NV (c) 48,600 1,858,950
May Dept Stores Company 5,200 203,450
Tiffany & Company 9,300 695,175
TJX Companies Inc. 31,200 1,060,800
Wal-Mart Stores Inc. 20,300 1,871,406
-----------
9,471,753
-----------
TELEPHONE--6.4%
AT & T Corporation 13,000 1,037,562
Alltel Corporation 15,000 935,625
MCI Worldcom Inc. (a) 31,900 2,825,144
-----------
4,798,331
-----------
TOBACCO--1.2%
Philip Morris Companies Inc. 26,300 925,431
-----------
TOTAL COMMON STOCK
(Cost $53,193,907) (b) 73,765,366
OTHER ASSETS & LIABILITIES (NET)--2.3% 1,715,928
-----------
NET ASSETS--100% $75,481,294
===========
(a) Non-income producing security.
(b) At March 31, 1999, the unrealized appreciation of investments based on
aggregate cost for federal tax purposes of $53,273,311 was as follows:
Aggregate gross unrealized appreciation for all investments $21,273,823
in which there is an excess of value over tax cost
Aggregate gross unrealized depreciation for all investments (781,768)
in which there is an excess of tax cost over value -----------
Net unrealized appreciation $20,492,055
===========
(c) ADR-American Depository Receipts
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
17
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
PORTFOLIO OF INVESTMENTS March 31, 1999
QUANTITATIVE INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
COMMON STOCK--97.9%
Shares Value
AUSTRALIA--3.7%
AMP Ltd. 10,600 $ 116,089
CSR Ltd. 5,500 11,925
Faulding (F.H.) & Company 1,800 10,730
Leighton Holding (c) 25,000 82,598
Metal Manufactures 37,300 48,727
National Australia Bank 13,000 236,189
Normandy Mining Ltd. 25,900 20,695
Orica Ltd. 36,200 190,537
Telstra Corporation Ltd. 32,200 168,564
---------
886,054
---------
AUSTRIA--2.0%
Bank Austria AG 4,100 244,265
Bohler Uddeholm 2,000 96,361
OMV AG 1,450 128,404
---------
469,030
---------
BELGIUM--2.8%
Electrabel 200 71,795
Fortis AG 11,360 420,078
Tractebel Inv International 1,200 189,435
---------
681,308
---------
FINLAND--2.1%
Nokia (AB) OY 3,100 499,764
---------
FRANCE--9.0%
AXA-UAP 1,497 198,768
Banque National Paris 1,762 153,556
Cap Gemini 1,411 236,627
Cie De St. Gobain 177 28,133
Elf Aquitaine 1,556 211,649
France Telecom 678 54,908
Lafarge 899 81,166
Michelin CGDE 3,701 166,271
Pechiney 1,223 44,299
Peugeot SA 373 53,720
Pinault Printemps Redo 839 134,080
Promodes 450 275,394
Rhone Poulenc SA 5,776 261,678
Sanofi 310 52,289
Seita 1,600 108,904
Sodexho Alliance 145 23,752
Suez Lyonnaise Des Eaux 339 62,826
---------
2,148,020
---------
GERMANY--10.5%
Bayerische Hypo Vereinsbank 6,932 415,235
Bilfinger & Berger 8,600 161,798
Continental AG 2,150 53,235
Daimler Chrysler AG (c) 3,530 307,635
Deutsche Bank AG 5,200 267,912
Deutsche Telekom 8,250 336,742
Karstadt AG (c) 1,350 482,426
Lufthansa AG (c) 5,100 111,666
Metro AG (c) 600 37,608
Thyssen Krupp AG 12,500 247,336
Veba AG 1,700 89,517
---------
2,511,110
---------
HONG KONG--0.1%
Hysan Development 13,900 $ 18,116
---------
IRELAND--5.1%
Allied Irish Banks 6,500 112,450
Clondalkin Group 26,900 191,965
CRH 9,000 155,603
Irish Life 40,647 650,047
Jurys Hotel Group 11,290 98,879
---------
1,208,944
---------
ITALY--1.7%
INA (c) 96,000 290,640
Montedison SPA (c) 95,000 98,610
Sao Paolo Imi SPA 821 13,360
---------
402,610
---------
JAPAN--23.1%
Acom Company 6,100 431,170
Asahi Bank 24,000 126,673
Bank Of Tokyo-Mitsubishi Ltd. 41,000 565,064
Canon Inc. 16,000 395,896
Casio Computer Company (c) 60,000 406,874
Chugai Pharmaceutical Company (c) 21,000 242,604
Dai-Nippon Ink & Chemicals 41,000 135,380
Fuji Photo Film Company 3,000 113,499
Honda Motor Company 14,000 632,521
Kansai Electric Power 7,000 141,578
Mitsubishi Corporation 26,000 170,164
Mitsui Mining & Smelting (c) 28,000 135,253
Orix Corporation 2,500 187,687
Sankyo Company 27,000 579,150
Sekisui House 17,000 180,889
Sony Corporation 4,000 369,886
Tokyo Electric Power 20,000 430,689
Toyota Motor Corporation 9,000 260,693
---------
5,505,670
---------
NETHERLANDS--1.0%
Unilever NV 3,300 229,609
---------
PORTUGAL--2.6%
BPI Soc Gestora 1,600 48,699
Electric De Portugal 25,800 509,943
Portugal Telecom 1,300 58,319
---------
616,961
---------
SINGAPORE--2.0%
Comfort Group 342,000 102,016
Creative Technology 2,000 23,284
Dev Bank Singapore 5,000 37,938
Overseas Chinese Bank 2,000 13,553
Overseas Union Bank 55,800 197,150
Singapore International Airlines 7,000 50,681
Singapore Telecomm 30,000 42,745
---------
467,367
---------
SPAIN--1.7%
Endesa SA 4,100 103,646
Iberdrola SA 17,877 265,201
Repsol SA (c) 600 30,945
---------
399,792
---------
- --------------------------------------------------------------------------------
18
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
PORTFOLIO OF INVESTMENTS March 31, 1999
QUANTITATIVE INTERNATIONAL EQUITY FUND--Continued
- --------------------------------------------------------------------------------
COMMON STOCK--Continued
Shares Value
SWEDEN--0.4%
Hennes & Mauritz 1,400 $ 105,686
----------
SWITZERLAND--8.2%
Holderbank Financiere Glarus 280 313,861
Roche Holdings AG 11 134,478
Sairgroup 545 117,568
Schweiz-Ruckversicherungs 110 243,997
Sulzer AG 230 147,211
Swatch Group (c) 1,010 140,577
UBS AG 1,685 530,682
Valora Holding AG 1,110 261,628
Zurich Allied AG (a) 120 76,968
----------
1,966,970
----------
UNITED KINGDOM--21.9%
Abbey National PLC 9,400 194,408
Anglian Water PLC 33,413 409,984
Barclays PLC 5,500 158,415
BG 47,700 280,707
BP Amoco PLC 5,800 98,042
British Aerospace 18,300 122,318
British Telecommunications PLC 28,400 462,186
BTR Siebe PLC 26,200 115,373
Diageo PLC 7,000 78,602
GKN PLC 4,200 63,266
Glaxo Wellcome 13,600 456,051
Granada Group PLC 9,800 197,776
HSBC Holdings PLC 10,600 338,509
Lloyds TSB Group PLC 11,500 173,228
National Power 8,100 62,183
Racal Electronics 20,400 131,249
Rank Group PLC 16,900 61,732
Rexam 38,900 129,062
Rolls Royce 18,400 77,980
Royal Bank of Scotland Group 11,400 248,656
Scottish Power 4,600 40,253
Smith Kline Beecham 12,800 184,854
Smiths Industries 8,700 127,399
Taylor Woodrow PLC 51,400 148,129
Thames Water 9,100 138,104
United Utilities 36,948 441,429
Vodafone Group PLC 14,900 276,644
----------
5,216,539
----------
TOTAL COMMON STOCK
(Cost $20,520,022) 23,333,550
----------
PREFERRED STOCK--0.3%
GERMANY--0.3%
Rheinmetall AG
(Cost $86,856) 4,550 80,191
----------
SHORT TERM INVESTMENTS--1.6%
[CAPTION]
Par
Value Value
State Street Bank & Trust Repurchase Agreement 3.50%,
4/1/99, (Dated 3/31/99), Collateralized by $290,000
U.S. Treasury Bond 8.750%, 5/15/17, Market Value
$391,138, (Cost $379,000) Repurchase Proceeds
$378,037. $379,000 $ 379,000
-----------
TOTAL INVESTMENTS--99.8%
(Cost $20,985,878) (b) 23,792,741
OTHER ASSETS & LIABILITIES (NET)--0.2% 58,353
-----------
NET ASSETS--100% $23,851,094
===========
(a) Non-income producing security.
(b) At March 31, 1999, the unrealized appreciation of investments based on ag-
gregate cost for federal tax purposes of $21,320,381 was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost $ 3,434,693
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value (962,333)
-----------
Net unrealized appreciation $ 2,472,360
===========
(c) A portion of security is on loan at 3/31/99. (Note 6)
SECTOR ALLOCATIONS (as a percentage of Total Common and
Preferred Stock)
- ---------------------------------
Banks 17.2%
Business Services 5.1%
Capital Goods 8.1%
Consumer Durable Goods 10.1%
Consumer Non-Durable Goods 1.8%
Consumer Services 0.5%
Energy 3.8%
Finance 11.4%
Health Care 7.0%
Miscellaneous 2.7%
Private Placement 1.1%
Raw Materials 4.9%
Real Estate 0.1%
Retail 5.7%
Shelter 0.8%
Technology 5.3%
Transportation 1.6%
Utilities 12.8%
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
19
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
PORTFOLIO OF INVESTMENTS March 31, 1999
QUANTITATIVE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
COMMON STOCK--91.0%
Shares Value
ARGENTINA--6.6%
Banco Frances SA 14,000 $ 81,958
Central Puerto SA 45,000 109,877
Embotelladora Buenos Aires 35 350
Nobleza Piccardo 25,000 78,806
Siderar SA 3,400 5,512
Siderca SA 85,000 93,566
Telefonica De Argentina 46,000 138,558
YPF SA 4,600 145,463
--------
654,090
--------
BRAZIL--1.1%
Centrais Eletricas Bras SA 3,030,000 59,151
Sider Nacional Cia 2,383,000 40,282
Telesp Participaco 528,000 6,927
Vale Rio Doce Cia 500 5,335
--------
111,695
--------
CHILE--6.9%
Chilectra SA (d) 3,000 66,375
Compania Cervecerias Unidas SA (d) 3,280 71,545
Compania De Telecom De Chile (d) 4,110 96,842
Embotelladora Andina SA, Series A (d) 1,500 22,781
Embotelladora Andina SA, Series B (d) 1,500 18,562
Empresa Nacional De Electricid (d) 8,330 117,141
Enersis SA (d) 3,000 80,437
Gener SA (d) 4,100 75,337
Madeco SA (d) 12,880 115,920
Masisa SA (d) 2,500 19,375
--------
684,315
--------
CHINA--2.4%
China International Marine 20,900 8,037
Guangdong Electric 263,640 71,443
Guangshen Railway 202,000 23,460
Huaneng Power International Inc. (d) 6,600 65,588
Qingling Motors 119,300 17,088
Shanghai Dazhong Taxi (a) 72,000 23,040
Shanghai Petrochemical 331,800 37,250
Shanghai Tyre & Rubber (a) 35,200 3,309
--------
249,215
--------
GREECE--7.8%
Alpha Credit Bank 2,810 187,035
Attica Enterprises 5,280 45,090
National Bank Of Greece 3,644 247,139
OTE (Hellenic Telecom) 7,000 170,282
Titan Cement Company 1,600 122,044
--------
771,590
--------
HUNGARY--2.6%
Magyar Olaj-Es Gazipare Resz 5,400 115,961
Matav 8,000 42,677
OTP Bank 2,000 77,367
Pannonplast Muanyag 1,000 17,082
--------
253,087
--------
INDIA--7.3%
Century Textiles (e) 6,000 4,920
Grasim Industries Ltd. (b) (e) 2,900 12,687
Gulf Corporation (e) 109,000 54,500
ITC Ltd. (e) 4,800 130,800
Larsen & Toubro (e) 6,000 62,250
Mahanagar Telep Ni (e) 8,000 85,000
Mahindra & Mahindra (e) 6,000 32,400
Ranbaxy Laboratories Ltd. (b) (e) 9,400 158,390
Reliance Industries Ltd. (e) 15,100 89,090
State Bank of India (e) 9,000 87,075
--------
717,112
--------
ISRAEL--5.8%
Bezeq Israel Telecom 65,000 268,073
Bank Hapoalim Bm 54,000 126,840
Koor Industries 1,700 180,238
--------
575,151
--------
KOREA, REPUBLIC OF--8.5%
Cheil Jedang 1,716 64,472
Han Hwa Chemical (a) 11,000 62,575
Korea Electric Power 6,600 159,218
Korea Zinc 2,750 52,669
Korean Air Lines 10,000 92,910
Namhae Chemical 2,000 53,301
Pohang Iron & Steel 2,000 111,165
Samsung Electronics 2,600 201,304
Samsung Fire & Marine Insurance 100 38,142
--------
835,756
--------
MEXICO--8.7%
Cemex SA, Series A 7,300 30,295
Cemex SA, Series B 7,000 29,381
Cemex SA CPO 21,000 85,717
Cifra SA, Series V (a) 57,388 90,080
Fomento Economico Mexico (a) 29,000 88,664
Grupo Industrial Bimbo, Series A 14,000 31,183
Grupo Modelo SA De, Series C 60,000 153,814
Grupo Televisa SA (a) 2,100 33,205
Telefonos De Mexico 98,400 321,521
--------
863,860
--------
PERU--3.4%
Cementos Lima 3,022 39,046
Credicorp SA 5,520 53,820
Minas Buenaventura 7,805 52,815
Southern Peru Copper Corporation 1,261 12,689
Telefonica Del Peru 125,600 161,529
Union Cerv Peru Backus & Johnston 59,066 21,120
--------
341,019
--------
PHILIPPINES--3.9%
Manila Electric Company 32,000 105,703
Petron Corporation 1,000,001 112,258
Philippine Long Distance 1,600 42,116
SM Prime Holdings 600,000 123,871
--------
383,948
--------
- --------------------------------------------------------------------------------
20
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
PORTFOLIO OF INVESTMENTS March 31, 1999
QUANTITATIVE EMERGING MARKETS FUND--Continued
- --------------------------------------------------------------------------------
COMMON STOCK--Continued
Shares Value
POLAND--4.4%
Big Bank Gdanski 75,000 $ 134,230
Bank Rozwoju Eksport 7,000 134,043
Elektrim 6,000 63,830
KGHM Polska Miedz 15,000 69,086
WBK (Wielkopolski) 6,000 33,041
---------
434,230
---------
SOUTH AFRICA--6.9%
Anglo American Platnum 5,000 79,523
Angloglold 1,000 40,248
Dimension Data Holding (a) 12,084 53,735
Foschini (a) 329 673
Liberty Life Association of Africa 5,500 68,463
Metropolitan Life 25,000 42,602
Palabora Mining Company 22,000 116,038
Rembrandt Group 10,000 71,895
Sappi 20,000 84,716
Sasol 15,000 74,248
Sun International of South Africa 380,000 46,870
---------
679,011
---------
TAIWAN--7.4%
MSCI Taiwan Index Series (b) (f) 6,800 727,872
---------
THAILAND--2.9%
Advance Agro 50,000 30,622
Advanced Information Services 5,000 36,214
Electricity Generating (a) 35,000 69,897
Hana Microelectronic (a) 11,000 19,039
Pizza Public Company Ltd. 8,000 25,562
PTT Exploration & Production (a) 13,000 101,078
---------
282,412
---------
TURKEY--4.4%
Akbank 104 3
Ford Otomotiv San 40,000 17,960
Sifas (a) 3,689,852 6,726
T Garanti Bankasi (a) 1,802,497 74,893
Turkiye Is Bankasi 4,750,000 206,909
Vestel Electronic (a) 592,000 56,336
Yapi Kredi Bankasi 4,000,000 73,985
---------
436,812
---------
TOTAL COMMON STOCK
(Cost $8,976,926) 9,001,175
---------
PREFERRED STOCK--6.8%
BRAZIL--6.8%
Banco Est Sao Paulo 850,000 38,659
Banco Itau SA 239,000 121,937
Belgo-Mineira 1,600,000 36,385
Caemi Mineracao E Metal 3,000,000 85,714
Cim Port Itau Cia 170,000 15,696
Centrais Electrobras 380,000 7,966
Embratel Participa (a) 825,000 13,859
Klabin Fabricadora 150,000 33,236
Metalurgica Gerdau 4,500,000 76,880
Petro Ipiranga Cia 15,000,000 97,609
Tele Norte Leste P (a) 825,000 12,603
Telesp Participaco 825,000 17,270
Usiminas Usi Sd Mg 51,632 88,211
Vale Rio Doce Cia 1,648 24,264
---------
TOTAL PREFERRED STOCK
(Cost $717,900) $ 670,289
---------
SHORT TERM INVESTMENTS--0.3%
Par
Value Value
State Street Bank & Trust Repurchase Agreement 3.50%,
4/1/99, (Dated 3/31/99), Collateralized by $25,000
U.S. Treasury Bond 9.250%, 2/15/16, Market Value
$34,250, (Cost $30,000) Repurchase Proceeds $30,003. $ 30,000 $ 30,000
----------
TOTAL INVESTMENTS--98.1%
(Cost $9,724,826) (c) 9,701,464
OTHER ASSETS & LIABILITIES (NET)--1.9% 187,847
----------
NET ASSETS--100 % $9,889,311
==========
(a) Non-income producing security.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. (Note 2)
(c) At March 31, 1999, the unrealized depreciation of investments based on
aggregate cost for federal tax purposes of $9,736,516 was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost $ 1,675,590
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value (1,710,642)
-----------
Net unrealized depreciation $ (35,052)
============
(d) ADR American Depository Receipts
(e) GDR Global Depository Receipts
(f) OPAL, Rule 144A stock, issued by Morgan Stanley Capital (Delaware) LLC. An
OPAL represents an optimised portfolio of securities designed to track the
performance of a specific benchmark index in a single trade. Emerging Mar-
kets has the contractual right to exchange the OPAL for the underlying se-
curities, which may not be restricted securities, at any time.
SECTOR ALLOCATIONS (as a percentage of Total Common and
Preferred Stock)
- ---------------------------------
Banks 16.8%
Basic Industries 0.5%
Business Services 9.6%
Capital Goods 7.6%
Consumer Basics 0.9%
Consumer Durable Goods 3.4%
Consumer Non-Durable Goods 7.4%
Consumer Services 1.1%
Energy 5.5%
Finance 3.4%
Health Care 1.6%
Miscellaneous 8.4%
Private Placement 0.9%
Raw Material 12.3%
Retail 1.8%
Technology 4.7%
Transportation 1.7%
Utilities 12.4%
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
21
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
PORTFOLIO OF INVESTMENTS March 31, 1999
QUANTITATIVE FOREIGN VALUE FUND
- --------------------------------------------------------------------------------
COMMON STOCK--99.7%
Shares Value
AUSTRIA--3.4%
RHI AG 9,700 $ 264,301
---------
CANADA--2.1%
Methanex Corporation (US Shares) (a) 1,000 3,250
Methanex Corporation (a) 49,000 160,682
---------
163,932
---------
DENMARK--2.1%
Jyske Bank (A/S) 2,100 168,857
---------
FINLAND--14.0%
Kesko 14,200 213,264
Kone Corporation 2,080 219,277
Neptune Maritime OY (a) 108,600 264,203
Rautaruukki OY 37,800 257,489
Valmet Corporation 13,200 152,002
---------
1,106,235
---------
FRANCE--2.9%
Christian Dior 1,770 227,552
---------
GERMANY--9.1%
A. Flender Friedrich (a) 1,305 134,048
Continental AG 7,400 183,229
Veba AG 4,425 233,007
Walter AG 5,950 164,053
---------
714,337
---------
HONG KONG--2.1%
V-tech Holdings Ltd. 58,700 169,294
---------
IRELAND--3.5%
Crean (James) PLC 232,059 276,005
---------
JAPAN--10.4%
Arisawa Manufacturing Company Ltd. 17,000 208,884
Takefuji Corporation 4,300 330,448
Toyota Motor Corporation (c) 300 17,175
Toyota Motor Corporation 9,000 260,693
---------
817,200
---------
NETHERLANDS--14.3%
Draka Holding NV 6,600 212,303
Gamma Holding NV 4,400 202,194
KLM Royal Dutch Airlines NV 6,842 192,346
Kon. Boskalis Westminster 12,900 198,063
Roto Smeets De Boer 4,950 179,298
Schuttersveld Holding NV 8,408 145,458
---------
1,129,662
---------
NORWAY--3.7%
Orkla SA 18,800 288,463
---------
SOUTH AFRICA--7.8%
Palabora Mining Company 39,550 208,606
Sanlam Ltd. 203,000 175,927
Sappi Ltd. 54,100 229,157
---------
613,690
---------
SPAIN--7.0%
Banco Bilbao Vizcaya SA 10,700 159,657
Repsol SA (c) 3,900 199,875
Union Electric Fenosa SA 13,100 195,893
---------
555,425
---------
SWEDEN--0.2%
SKF AB 500 7,123
Volvo AB 400 10,350
---------
17,473
---------
THAILAND--4.3%
Total Access Communications (a) 156,900 338,904
---------
UNITED KINGDOM--12.8%
Barratt Developments PLC 41,000 195,274
Beazer Group PLC 57,000 173,470
Bellway PLC 33,000 175,286
Countryside Properties PLC 126,000 223,770
Crest Nicholson PLC 104,000 238,429
---------
1,006,229
TOTAL COMMON STOCK
(Cost $8,406,088)........................................ 7,857,559
SHORT TERM INVESTMENTS--5.1% ---------
[CAPTION]
Par
Value Value
State Street Bank & Trust Repurchase Agreement 3.50%,
4/1/99, (Dated 3/31/99), 3/31/99), Collateralized by
$305,000 U.S. Treasury Bond 8.750%, 5/15/17, Market
Value $411,369, (Cost $400,000) Repurchase Proceeds
$400,039. $400,000 $ 400,000
---------
TOTAL INVESTMENTS--104.8%
(Cost $8,806,088) (b) 8,257,559
OTHER ASSETS & LIABILITIES (NET)--(4.8)% (378,180)
----------
NET ASSETS--100 % $7,879,379
==========
(a) Non-income producing security.
(b) At March 31, 1999, the unrealized depreciation of investments based on ag-
gregate cost for federal tax purposes of $8,929,284 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 447,509
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (1,119,234)
----------
Net unrealized depreciation $ (671,725)
==========
(c) ADR--American Depository Receipts
SECTOR ALLOCATIONS (as a
percentage of Total Common
Stock)
- ---------------------------------
Banks 4.2%
Capital Goods 34.1%
Consumer Durable Goods 3.7%
Consumer Non-Durable Goods 6.1%
Consumer Services 5.2%
Energy 2.5%
Finance 6.4%
Miscellaneous 6.4%
Raw Materials 13.7%
Technology 9.8%
Transportation 2.4%
Utilities 5.5%
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
22
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES March 31, 1999
<TABLE>
<CAPTION>
Growth and International Emerging Foreign
Small Cap Mid Cap Income Equity Markets Value
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value
(Note 2) $50,961,464 $13,269,615 $73,765,366 $23,792,741 $ 9,701,464 $8,257,559
Foreign currency at
value (Cost $1,472,755
for International Equity
and $171,088 for
Emerging Markets) (Note
2) -- -- -- 1,465,345 171,903 --
Cash 380,551 1,252 1,523,123 1,189 1,591 1,049
Collateral for securi-
ties loaned at value
(Note 6) -- -- -- 1,175,635 -- --
Dividends, interest and
foreign tax reclaims re-
ceivable 44,952 1,058 72,349 147,173 42,005 29,615
Receivable for invest-
ments sold 1,646,715 475,316 24,390,256 873,492 -- --
Receivable for shares of
beneficial interest sold 997 270 -- -- -- --
Other assets 21,249 2,913 14,348 8,896 18,824 --
----------- ----------- ----------- ----------- ----------- ----------
Total assets 53,055,928 13,750,424 99,765,442 27,464,471 9,935,787 8,288,223
----------- ----------- ----------- ----------- ----------- ----------
Liabilities:
Collateral for securi-
ties loaned at value
(Note 6) -- -- -- 1,175,635 -- --
Payable for investments
purchased 645,280 529,037 24,152,560 2,366,647 24,657 391,386
Payable for shares of
beneficial interest re-
purchased 32,712 26,008 750 20,396 -- --
Payable for compensation
of Manager (Note 3) 44,591 11,431 48,833 20,201 6,372 6,551
Payable for distribution
fees (Note 3) 20,256 -- 30,574 9,286 3,398 1,553
Payable to custodian 2,741 864 5,580 2,776 7,822 3,485
Payable to transfer
agent (Note 3) 8,998 1,574 12,257 4,398 1,792 --
Other accrued expenses 16,464 7,916 33,594 14,038 2,435 5,869
----------- ----------- ----------- ----------- ----------- ----------
Total liabilities 771,042 576,830 24,284,148 3,613,377 46,476 408,844
----------- ----------- ----------- ----------- ----------- ----------
Net assets $52,284,886 $13,173,594 $75,481,294 $23,851,094 $ 9,889,311 $7,879,379
=========== =========== =========== =========== =========== ==========
Net Assets consist of:
Shares of beneficial in-
terest $52,377,990 $10,692,530 $46,778,875 $21,456,730 $12,556,907 $8,735,892
Undistributed net in-
vestment income (loss) 12,293 -- -- (27,158) (11,691) (18,051)
Accumulated net realized
gain (loss) on
investments and foreign
denominated assets,
liabilities and currency (5,799,531) 603,353 8,130,960 (383,720) (2,626,295) (289,300)
Unrealized appreciation
(depreciation) of
investments and foreign
denominated assets,
liabilities and currency 5,694,134 1,877,711 20,571,459 2,805,242 (29,610) (549,162)
----------- ----------- ----------- ----------- ----------- ----------
$52,284,886 $13,173,594 $75,481,294 $23,851,094 $ 9,889,311 $7,879,379
----------- ----------- ----------- ----------- ----------- ----------
Investments, at cost $45,267,330 $11,391,904 $53,193,907 $20,985,878 $ 9,724,826 $8,806,088
----------- ----------- ----------- ----------- ----------- ----------
Net assets
Ordinary Shares $47,605,106 $12,616,713 $70,874,474 $21,955,589 $ 8,442,023 $7,478,220
Institutional Shares $ 4,679,780 $ 556,881 $ 4,606,820 $ 1,895,505 $ 1,447,288 $ 401,159
Shares of beneficial in-
terest outstanding (Un-
limited number of shares
authorized)
Ordinary Shares 3,259,943 816,294 3,334,252 1,930,912 1,281,552 894,260
Institutional Shares 308,406 35,591 215,617 166,386 217,965 47,949
Net asset value and of-
fering price per share*
Ordinary Shares $ 14.60 $ 15.46 $ 21.26 $ 11.37 $ 6.59 $ 8.36
Institutional Shares $ 15.17 $ 15.65 $ 21.37 $ 11.39 $ 6.64 $ 8.37
</TABLE>
* A deferred sales charge amounting to 1% of the net asset value
of the Ordinary Shares redeemed is withheld and paid to the
Distributor. No deferred sales charge is withheld from redemp-
tions of the Institutional Shares. In addition, no deferred
sales charge is withheld from the Ordinary Shares of Mid Cap
purchased after August 1, 1996.
The accompanying notes are an integral part of these financial
statements.
23
<PAGE>
STATEMENTS OF OPERATIONS Year Ended March 31, 1999
<TABLE>
<CAPTION>
Growth and International Emerging Foreign
Small Cap Mid Cap Income Equity Markets Value**
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividends* $ 507,250 $ 116,364 $ 884,975 $ 566,313 $ 285,524 $ 83,290
Interest 61,335 22,595 -- 38,328 12,787 22,433
Miscellaneous 1,288 -- -- -- -- --
------------ ----------- ----------- ----------- ----------- ---------
Total investment income 569,873 138,959 884,975 604,641 298,311 105,723
------------ ----------- ----------- ----------- ----------- ---------
Expenses:
Compensation of Manager
(Note 3) 595,869 148,620 527,997 276,103 73,465 50,130
Distribution fees, Or-
dinary Shares (Note 3) 271,789 35,096 331,897 128,911 40,428 12,297
Custodian fees 45,750 38,628 41,550 69,110 83,472 39,789
Transfer agent fees
(Note 3):
Ordinary Shares 77,135 19,920 94,241 36,556 11,454 6,968
Institutional Shares 7,424 1,170 5,703 2,591 1,557 147
Audit and legal 33,834 8,292 38,787 15,572 5,054 2,294
Registration fees 44,697 11,130 54,637 20,127 6,820 4,278
Insurance 16,493 4,093 19,234 7,598 2,482 1,248
Compensation of Trust-
ees (Note 3) 9,945 2,463 11,566 4,579 1,494 741
Printing 11,986 2,951 14,297 5,403 1,802 1,008
Miscellaneous 17,466 4,024 14,204 5,676 3,542 2,623
------------ ----------- ----------- ----------- ----------- ---------
Total expenses before
waivers and/or reim-
bursements, and reduc-
tions 1,132,388 276,387 1,154,113 572,226 231,570 121,523
Waivers and/or reim-
bursements of expenses
(Note 3) -- (30,747) -- -- (23,833) (21,698)
Fees reduced by credits
allowed by Custodian
(Note 3) -- -- (32,530) (8,306) (7,275) (4,305)
------------ ----------- ----------- ----------- ----------- ---------
Expenses, net 1,132,388 245,640 1,121,583 563,920 200,462 95,520
------------ ----------- ----------- ----------- ----------- ---------
Net investment income
(loss) (562,515) (106,681) (236,608) 40,721 97,849 10,203
------------ ----------- ----------- ----------- ----------- ---------
Realized and Unrealized
Gain (Loss) on
Investments, Foreign
Currency and Foreign
Translation:
Net realized gain
(loss) (Note 2) on:
Investments (5,509,251) 606,101 10,150,742 81,888 (148,354) (289,300)
Foreign denominated as-
sets, liabilities and
currency -- -- -- (30,805) (5,424) (8,974)
Change in unrealized
appreciation (deprecia-
tion) of :
Investments (6,572,725) (1,098,384) (1,022,813) (1,705,011) (1,303,368) (548,529)
Foreign denominated as-
sets, liabilities and
currency -- -- -- 1,638 (8,012) (633)
------------ ----------- ----------- ----------- ----------- ---------
Net realized and
unrealized gain (loss) (12,081,976) (492,283) 9,127,929 (1,652,290) (1,465,158) (847,436)
------------ ----------- ----------- ----------- ----------- ---------
Net increase (decrease)
in net assets resulting
from operations $(12,644,491) $ (598,964) $ 8,891,321 $(1,611,569) $(1,367,309) $(837,233)
============ =========== =========== =========== =========== =========
</TABLE>
* Dividends are net of foreign withholding taxes of $186 for Small Cap,
$2,926 for Growth & Income, $66,216 for International Equity, $23,625 for
Emerging Markets and $7,530 for Foreign Value.
** From the commencement of operations on May 15, 1998.
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Small Cap Mid Cap Growth and Income
Year ended Year ended Year ended Year ended Year ended Year ended
March 31, 1999 March 31, 1998 March 31, 1999 March 31, 1998 March 31, 1999 March 31, 1998
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
Operations:
Net investment income
(loss) $ (562,515) $ (915,493) $ (106,681) $ (63,340) $ (236,608) $ 6,750
Net realized gain
(loss) on investments,
foreign denominated
assets, liabilities,
currency and written
options (5,509,251) 2,413,066 606,101 2,419,921 10,150,742 8,864,329
Unrealized appreciation
(depreciation) of
investments and foreign
denominated assets,
liabilities and
currency (6,572,725) 20,992,077 (1,098,384) 2,234,749 (1,022,813) 14,011,197
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations (12,644,491) 22,489,650 (598,964) 4,591,330 8,891,321 22,882,276
Distributions to share-
holders from:
Net investment income
Ordinary Shares -- (573,716) -- -- -- (124,594)
Institutional Shares -- (122,203) -- -- -- (16,181)
Distributions in excess
of net investment
income
Ordinary Shares -- -- -- -- -- --
Institutional Shares -- -- -- -- -- --
Net realized gains
Ordinary Shares -- (8,534,419) (351,734) (2,319,745) (7,029,265) (5,343,691)
Institutional Shares -- (868,942) (24,367) (120,011) (429,071) (185,893)
Distributions in excess
of net realized gains
Ordinary Shares -- -- -- -- -- --
Institutional Shares -- -- -- -- -- --
Return of capital
Ordinary Shares -- (99,481) -- -- -- --
Institutional Shares -- (10,129) -- -- -- --
------------ ------------ ----------- ----------- ----------- -----------
-- (10,208,890) (376,101) (2,439,756) (7,458,336) (5,670,359)
------------ ------------ ----------- ----------- ----------- -----------
Fund share transactions
(Note 10) (8,232,637) (5,460,907) (2,158,430) 5,061,374 3,927,993 8,109,863
------------ ------------ ----------- ----------- ----------- -----------
Increase (decrease) in
net assets (20,877,128) 6,819,853 (3,133,495) 7,212,948 5,360,978 25,321,780
Net assets beginning of
year 73,162,014 66,342,161 16,307,089 9,094,141 70,120,316 44,798,536
------------ ------------ ----------- ----------- ----------- -----------
Net assets end of year* $ 52,284,886 $ 73,162,014 $13,173,594 $16,307,089 $75,481,294 $70,120,316
============ ============ =========== =========== =========== ===========
* Includes undistributed
net investment income
(loss) of $ 12,293 $ 947 $ -- $ -- $ -- $ 5,642
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS--Continued
<TABLE>
<CAPTION>
_____International Equity_______ ______Emerging Markets_____ __Foreign Value**__
Year ended Year ended Year ended Year ended Year ended
March 31, 1999 March 31, 1998 March 31, 1999 March 31, 1998 March 31, 1999
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
Operations:
Net investment income
(loss) $ 40,721 $ 204,235 $ 97,849 $ (38,727) $ 10,203
Net realized gain
(loss) on investments,
foreign denominated
assets, liabilities,
currency and written
options 51,083 220,658 (153,778) (2,089,353) (298,274)
Unrealized appreciation
(depreciation) of
investments and foreign
denominated assets,
liabilities and
currency (1,703,373) 3,313,394 (1,311,380) 190,861 (549,162)
--------------- -------------- ----------- ----------- ----------
Net increase (decrease)
in net assets resulting
from operations (1,611,569) 3,738,287 (1,367,309) (1,937,219) (837,233)
Distributions to share-
holders from:
Net investment income
Ordinary Shares (47,429) (284,663) (62,864) -- (10,203)
Institutional Shares (5,481) (28,084) (15,751) -- --
Distributions in excess
of net investment in-
come
Ordinary Shares (9,143) (157,497) -- -- (9,526)
Institutional Shares (1,057) (15,539) -- -- --
Net realized gains
Ordinary Shares -- (565,604) -- --
Institutional Shares -- (30,405) -- --
Distributions in excess
of net realized gains
Ordinary Shares -- (118,443) -- -- --
Institutional Shares -- (6,367) -- -- --
Return of capital
Ordinary Shares -- -- (26,927) -- --
Institutional Shares -- -- (6,747) -- --
--------------- -------------- ----------- ----------- ----------
(63,110) (1,206,602) (112,289) -- (19,729)
--------------- -------------- ----------- ----------- ----------
Fund share transactions
(Note 10) (8,384,309) 2,208,378 1,126,259 916,061 8,736,341
--------------- -------------- ----------- ----------- ----------
Increase (decrease) in
net assets (10,058,988) 4,740,063 (353,339) (1,021,158) 7,879,379
Net assets beginning of
year 33,910,082 29,170,019 10,242,650 11,263,808 --
--------------- -------------- ----------- ----------- ----------
Net assets end of year * $ 23,851,094 $ 33,910,082 $ 9,889,311 $10,242,650 $7,879,379
=============== ============== =========== =========== ==========
* Includes
undistributed net
investment income (loss)
of $ (27,158) $ (292,161) $ (11,691) $ (68,100) $ (18,051)
** From the commencement
of operations on May 15,
1998.
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
26
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Income from
______Investment Operations(e)________
Net Asset Net Realized
Value at Net and Unrealized Total from
Beginning Investment Gain (Loss) Investment
of Period Income(a) on Securities Operations
<S> <C> <C> <C> <C>
Small Cap
Ordinary Shares
Year Ended March
31, 1995 $15.33 (0.20) 1.67 1.47
Year Ended March
31, 1996 $15.81 (0.21) 5.54 5.33
Year Ended March
31, 1997 $18.91 0.16 (f) 0.77 0.93
Year Ended March
31, 1998 $15.04 (0.23) 5.60 5.37
Year Ended March
31, 1999 $17.80 (0.15) (3.05) (3.20)
Institutional
Shares
Year Ended March
31, 1995 $15.46 (0.13) 1.71 1.58
Year Ended March
31, 1996 $16.05 (0.12) 5.63 5.51
Year Ended March
31, 1997 $19.33 0.08 (f) 0.94 1.02
Year Ended March
31, 1998 $15.55 (0.15) 5.79 5.64
Year Ended March
31, 1999 $18.40 (0.08) (3.15) (3.23)
Mid Cap
Ordinary Shares
Oct. 3, 1994**
to March 31,
1995 $10.00 0.05 0.07 0.12
Year Ended March
31, 1996 $10.12 0.06 3.27 3.33
Year Ended March
31, 1997 $13.20 0.09 2.29 2.38
Year Ended March
31, 1998 $13.44 (0.08) 6.06 5.98
Year Ended March
31, 1999 $16.05 (0.11) (0.09) (0.20)
Institutional
Shares
April 17, 1995**
to March 31,
1996 $10.27 0.10 3.09 3.19
Year Ended March
31, 1997 $13.20 0.11 2.27 2.38
Year Ended March
31, 1998 $13.55 (0.06) 6.12 6.06
Year Ended March
31, 1999 $16.24 (0.10) (0.10) (0.20)
Growth and
Income
Ordinary Shares
Year Ended March
31, 1995 $13.86 0.14 1.44 1.58
Year Ended March
31, 1996 $13.72 0.12 2.89 3.01
Year Ended March
31, 1997 $14.57 0.08 2.53 2.61
Year Ended March
31, 1998 $15.22 0.00 7.61 7.61
Year Ended March
31, 1999 $20.85 (0.08) 2.82 2.74
Institutional
Shares
Year Ended March
31, 1995 $13.86 0.21 1.44 1.65
Year Ended March
31, 1996 $13.72 0.20 2.89 3.09
Year Ended March
31, 1997 $14.58 0.15 2.55 2.70
Year Ended March
31, 1998 $15.24 0.10 7.60 7.70
Year Ended March
31, 1999 $20.84 0.03 2.83 2.86
International
Equity
Ordinary Shares
Year Ended March
31, 1995 $10.18 (0.03) 0.04 0.01
Year Ended March
31, 1996 $10.06 0.00 0.67 0.67
Year Ended March
31, 1997 $10.70 0.01 0.40 0.41
Year Ended March
31, 1998 $11.03 0.07 1.30 1.37
Year Ended March
31, 1999 $11.97 0.01 (0.58) (0.57)
Institutional
Shares
August 25,
1994** to March
31, 1995 $11.00 0.01 (0.73) (0.72)
Year Ended March
31, 1996 $10.10 0.04 0.66 0.70
Year Ended March
31, 1997 $10.73 0.06 0.41 0.47
Year Ended March
31, 1998 $11.10 0.14 1.28 1.42
Year Ended March
31, 1999 $11.95 0.06 (0.58) (0.52)
<CAPTION>
__________________________Distributions__________________________
Dividends
Dividends in excess of Distributions Distributions Net Assets
from Net Net from in excess of Net Asset End of
Investment Investment Realized Realized Total Value End Total Period
Income Income Capital Gains Capital Gains Distributions of Period Return(c) (000's)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Small Cap
Ordinary Shares
Year Ended March
31, 1995 -- -- (0.99) -- (0.99) $15.81 10.24 % $53,920
Year Ended March
31, 1996 -- -- (2.23) -- (2.23) $18.91 34.25 % $71,618
Year Ended March
31, 1997 -- -- (4.80) -- (4.80) $15.04 1.72 % $57,135
Year Ended March
31, 1998 (0.16) -- (2.45)(g) -- (2.61) $17.80 37.79 % $66,876
Year Ended March
31, 1999 -- -- -- -- -- $14.60 (17.98)% $47,605
Institutional
Shares
Year Ended March
31, 1995 -- -- (0.99) -- (0.99) $16.05 10.88 % $47,044
Year Ended March
31, 1996 -- -- (2.23) -- (2.23) $19.33 34.89 % $42,803
Year Ended March
31, 1997 -- -- (4.80) -- (4.80) $15.55 2.21 % $ 9,207
Year Ended March
31, 1998 (0.34) -- (2.45)(g) -- (2.79) $18.40 38.44 % $ 6,286
Year Ended March
31, 1999 -- -- -- -- -- $15.17 (17.55)% $ 4,680
Mid Cap
Ordinary Shares
Oct. 3, 1994**
to March 31,
1995 -- -- -- -- -- $10.12 1.20 % $ 420
Year Ended March
31, 1996 (0.01) -- (0.24) -- (0.25) $13.20 33.01 % $ 6,025
Year Ended March
31, 1997 (0.14) -- (2.00) -- (2.14) $13.44 17.47 % $ 8,733
Year Ended March
31, 1998 -- -- (3.37) -- (3.37) $16.05 46.76 % $15,484
Year Ended March
31, 1999 -- -- (0.39) -- (0.39) $15.46 (1.08)% $12,617
Institutional
Shares
April 17, 1995**
to March 31,
1996 (0.02) -- (0.24) -- (0.26) $13.20 31.12 % $ 4,621
Year Ended March
31, 1997 (0.03) -- (2.00) -- (2.03) $13.55 17.51 % $ 361
Year Ended March
31, 1998 -- -- (3.37) -- (3.37) $16.24 47.01 % $ 823
Year Ended March
31, 1999 -- -- (0.39) -- (0.39) $15.65 (1.07)% $ 557
Growth and
Income
Ordinary Shares
Year Ended March
31, 1995 (0.16) -- (1.56) -- (1.72) $13.72 12.71 % $37,048
Year Ended March
31, 1996 (0.13) -- (2.03) -- (2.16) $14.57 22.17 % $41,353
Year Ended March
31, 1997 (0.10) -- (1.86) -- (1.96) $15.22 17.97 % $43,266
Year Ended March
31, 1998 (0.05) -- (1.93) -- (1.98) $20.85 51.52 % $66,397
Year Ended March
31, 1999 -- -- (2.33) -- (2.33) $21.26 13.67 % $70,874
Institutional
Shares
Year Ended March
31, 1995 (0.23) -- (1.56) -- (1.79) $13.72 13.29 % $ 1,975
Year Ended March
31, 1996 (0.20) -- (2.03) -- (2.23) $14.58 22.75 % $ 1,888
Year Ended March
31, 1997 (0.18) -- (1.86) -- (2.04) $15.24 18.62 % $ 1,532
Year Ended March
31, 1998 (0.17) -- (1.93) -- (2.10) $20.84 52.18 % $ 3,724
Year Ended March
31, 1999 -- -- (2.33) -- (2.33) $21.37 14.27 % $ 4,607
International
Equity
Ordinary Shares
Year Ended March
31, 1995 (0.13) -- -- -- (0.13) $10.06 0.07 % $27,657
Year Ended March
31, 1996 (0.03) -- -- -- (0.03) $10.70 6.63 % $27,402
Year Ended March
31, 1997 (0.08) -- -- -- (0.08) $11.03 3.82 % $27,410
Year Ended March
31, 1998 (0.11) (0.06) (0.21) (0.05) (0.43) $11.97 12.95 % $32,182
Year Ended March
31, 1999 (0.02) (0.01) -- -- (0.03) $11.37 (4.78)% $21,956
Institutional
Shares
August 25,
1994** to March
31, 1995 (0.18) -- -- -- (0.18) $10.10 (6.57)% $ 3,052
Year Ended March
31, 1996 (0.07) -- -- -- (0.07) $10.73 6.95 % $ 1,241
Year Ended March
31, 1997 (0.10) -- -- -- (0.10) $11.10 4.38 % $ 1,760
Year Ended March
31, 1998 (0.20) (0.11) (0.21) (0.05) (0.57) $11.95 13.50 % $ 1,728
Year Ended March
31, 1999 (0.03) (0.01) -- -- (0.04) $11.39 (4.34)% $ 1,895
<CAPTION>
____________Ratios and Supplemental Data_______________
Ratio of Ratio of Operating Ratio of Net
Operating Expenses Net of Investment
Expenses Custody Credits Income (Loss)
to Average to Average to Average Portfolio
Net Assets Net Assets(d) Net Assets Turnover
<S> <C> <C> <C> <C>
Small Cap
Ordinary Shares
Year Ended March
31, 1995 1.84% 1.84% (1.31)% 320.00%
Year Ended March
31, 1996 1.97% 1.88% (1.17)% 324.00%
Year Ended March
31, 1997 1.97% 1.90% 0.90 %(f) 393.00%
Year Ended March
31, 1998 1.90% 1.89% (1.33)% 135.00%
Year Ended March
31, 1999 1.94% 1.94% (0.99)% 113.00%
Institutional
Shares
Year Ended March
31, 1995 1.36% 1.36% (0.82)% 320.00%
Year Ended March
31, 1996 1.47% 1.38% (0.67)% 324.00%
Year Ended March
31, 1997 1.47% 1.40% 0.41 %(f) 393.00%
Year Ended March
31, 1998 1.41% 1.40% (0.86)% 135.00%
Year Ended March
31, 1999 1.44% 1.44% (0.49)% 113.00%
Mid Cap
Ordinary Shares
Oct. 3, 1994**
to March 31,
1995 -- % -- % 1.50 %(b) 0.00%(b)
Year Ended March
31, 1996 2.34% 1.92% 0.46 % 181.00%
Year Ended March
31, 1997 1.19% 1.11% 0.62 % 162.00%
Year Ended March
31, 1998 1.57% 1.57% (0.52)% 128.00%
Year Ended March
31, 1999 1.65% 1.65% (0.72)% 168.00%
Institutional
Shares
April 17, 1995**
to March 31,
1996 2.02%(b) 1.66%(b) 0.87 %(b) 181.00%
Year Ended March
31, 1997 1.44% 1.27% 0.77 % 162.00%
Year Ended March
31, 1998 1.40% 1.40% (0.35)% 128.00%
Year Ended March
31, 1999 1.62% 1.62% (0.69)% 168.00%
Growth and
Income
Ordinary Shares
Year Ended March
31, 1995 1.69% 1.69% 1.01 % 121.00%
Year Ended March
31, 1996 1.73% 1.64% 0.81 % 152.00%
Year Ended March
31, 1997 1.73% 1.70% 0.50 % 98.00%
Year Ended March
31, 1998 1.69% 1.65% (0.01)% 72.00%
Year Ended March
31, 1999 1.67% 1.62% (0.36)% 97.00%
Institutional
Shares
Year Ended March
31, 1995 1.23% 1.48% 1.48 % 121.00%
Year Ended March
31, 1996 1.24% 1.31% 1.31 % 152.00%
Year Ended March
31, 1997 1.24% 0.99% 0.99 % 98.00%
Year Ended March
31, 1998 1.19% 0.50% 0.50 % 72.00%
Year Ended March
31, 1999 1.17% 0.14% 0.14 % 97.00%
International
Equity
Ordinary Shares
Year Ended March
31, 1995 1.91% 1.91% (0.24)% 46.48%
Year Ended March
31, 1996 2.15% 2.09% (0.04)% 43.00%
Year Ended March
31, 1997 2.20% 2.15% 0.10 % 135.00%
Year Ended March
31, 1998 2.18% 2.03% 0.62 % 61.00%
Year Ended March
31, 1999 2.11% 2.08% 0.12 % 128.00%
Institutional
Shares
August 25,
1994** to March
31, 1995 1.66%(b) 1.66%(b) 0.13 %(b) 46.48%(b)
Year Ended March
31, 1996 1.65% 1.59% 0.38 % 43.00%
Year Ended March
31, 1997 1.69% 1.64% 0.51 % 135.00%
Year Ended March
31, 1998 1.68% 1.54% 1.19 % 61.00%
Year Ended March
31, 1999 1.61% 1.58% 0.62 % 128.00%
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
27
<PAGE>
FINANCIAL HIGHLIGHTS--Continued
<TABLE>
<CAPTION>
Income from
______Investment Operations(e)______
Net Asset Net Realized
Value at Net and Unrealized Total from
Beginning Investment Gain (Loss) Investment
of Period Income(a) on Securities Operations
<S> <C> <C> <C> <C>
Emerging Markets
Ordinary Shares
August 8, 1994**
to March 31,
1995 $10.00 (0.05) (2.71) (2.76)
Year Ended March
31, 1996 $ 7.24 (0.07) 1.21 1.14
Year Ended March
31, 1997 $ 8.38 (0.04) 0.90 0.86
Year Ended March
31, 1998 $ 9.24 (0.04) (1.50) (1.54)
Year Ended March
31, 1999 $ 7.70 0.07 (1.11) (1.04)
Institutional
Shares
April 2, 1996**
to March 31,
1997 $ 8.49 0.01 0.80 0.81
Year Ended March
31, 1998 $ 9.27 0.02 (1.53) (1.51)
Year Ended March
31, 1999 $ 7.76 0.09 (1.11) (1.02)
Foreign Value
Ordinary Shares
May 15, 1998**
to March 31,
1999 $10.00 0.02 (1.64) (1.62)
Institutional
Shares
December 18,
1998** to March
31, 1999 $ 8.43 0.06 (0.12) (0.06)
<CAPTION>
__________________________Distributions____________________________
Dividends
Dividends in excess of Distributions Distributions Net Assets
from Net Net from in excess of Net Asset End of
Investment Investment Realized Realized Total Value End Total Period
Income Income Capital Gains Capital Gains Distributions of Period Return(c) (000's)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Emerging Markets
Ordinary Shares
August 8, 1994**
to March 31,
1995 -- -- -- -- -- $7.24 (27.60)% $ 4,259
Year Ended March
31, 1996 -- -- -- -- -- $8.38 15.75 % $ 7,736
Year Ended March
31, 1997 -- -- -- -- -- $9.24 10.26 % $10,052
Year Ended March
31, 1998 -- -- -- -- -- $7.70 (16.67)% $ 9,241
Year Ended March
31, 1999 (0.07)(h) -- -- -- (0.07) $6.59 (13.40)% $ 8,442
Institutional
Shares
April 2, 1996**
to March 31,
1997 (0.03) -- -- -- (0.03) $9.27 9.54 % $ 1,212
Year Ended March
31, 1998 -- -- -- -- -- $7.76 (16.29)% $ 1,002
Year Ended March
31, 1999 (0.10)(h) -- -- -- (0.10) $6.64 (12.93)% $ 1,447
Foreign Value
Ordinary Shares
May 15, 1998**
to March 31,
1999 (0.01) (0.01) -- -- (0.02) $8.36 (16.16)% $ 7,478
Institutional
Shares
December 18,
1998** to March
31, 1999 -- -- -- -- -- $8.37 (0.71)% $ 401
<CAPTION>
____________Ratios and Supplemental Data_______________
Ratio of Ratio of Operating Ratio of Net
Operating Expenses Net of Investment
Expenses Custody Credits Income (Loss)
to Average to Average to Average Portfolio
Net Assets Net Assets(d) Net Assets Turnover
<S> <C> <C> <C> <C>
Emerging Markets
Ordinary Shares
August 8, 1994**
to March 31,
1995 2.54%(b) 2.54%(b) (1.03)%(b) 10.72%(b)
Year Ended March
31, 1996 2.74% 2.59% (0.84)% 9.00%
Year Ended March
31, 1997 2.68% 2.56% (0.47)% 8.00%
Year Ended March
31, 1998 2.69% 2.57% (0.43)% 52.00%
Year Ended March
31, 1999 2.32% 2.24% 1.03 % 49.00%
Institutional
Shares
April 2, 1996**
to March 31,
1997 2.01%(b) 1.89%(b) 0.13 %(b) 8.00%(b)
Year Ended March
31, 1998 2.19% 2.07% 0.24 % 52.00%
Year Ended March
31, 1999 1.82% 1.74% 1.36 % 49.00%
Foreign Value
Ordinary Shares
May 15, 1998**
to March 31,
1999 1.99%(b) 1.90%(b) 0.19 %(b) 22.00%(b)
Institutional
Shares
December 18,
1998** to March
31, 1999 1.72%(b) 1.70%(b) 0.75 %(b) 22.00%(b)
</TABLE>
** Commencement of Operations
(a) Reflects expense waivers/reimbursements and reductions in effect during
the period. See Note 3 to the Financial Statements. As a result of such
waivers/reimbursements and reductions, expenses of the Small Cap Ordinary
Shares for the periods ended March 31, 1998, 1997, and 1996 reflect a re-
duction of $0.01, $0.02 and $0.02 per share; expenses of the Small Cap
Institutional Shares for the periods ended March 31, 1998, 1997 and 1996
reflect a reduction of $0.01, $0.02 and $0.02 per share; expenses of the
Mid Cap Ordinary Shares for the periods ended March 31, 1999, 1998, 1997,
1996 and 1995 reflect a reduction of $0.03, $0.07, $0.15, $0.23 and $0.76
per share; expenses of the Mid Cap Institutional Shares for the periods
ended March 31, 1998, 1997, and 1996 reflects a reduction of $0.06, $0.10
and $0.11 per share; expenses of the Growth and Income Ordinary Shares
for the periods ended March 31, 1997 and 1996 reflect a reduction of
$0.01 and $0.01 per share; expenses of the Growth and Income Institu-
tional Shares for the periods ended March 31,1997 and 1996 reflect a re-
duction of $0.01 and $0.01 per share; expenses of the International Eq-
uity Ordinary Shares for the periods ended March 31, 1998, 1997, 1996 and
1995 reflect a reduction of $--, $0.01 $0.01 and $0.01 per share respec-
tively; expenses of the International Equity Institutional Shares for the
periods ended March 31, 1998, 1997, 1996, and 1995 reflect a reduction of
$--, $0.02, $0.01 and $0.01 per share; expenses of the Emerging Markets
Ordinary Shares for the periods ended March 31, 1999, 1997, 1996 and 1995
reflect a reduction of $0.02, $0.01, $0.01 and $0.02 per share; expenses
of the Emerging Markets Institutional Shares for the periods ended March
31, 1999 and 1997 reflects a reduction of $0.02 and $0.02 per share; ex-
penses of the Foreign Value Ordinary Shares for the period ended March
31, 1999 reflect a reduction of $0.01 per share, and expenses of the For-
eign Value Institutional Shares for the period ending March 31, 1999 re-
flect a reduction of $0.01 per share.
(b) Annualized
(c) Total Return does not include the one time deferred sales charge of 1%
for the Ordinary Shares. See Note 3 to the financial statements. Effec-
tive August 1, 1996 Mid Cap Ordinary Shares are no longer subject to the
deferred sales charge of 1%. The total return would have been lower if
certain fees had not been waived or if custodial fees had not been re-
duced by credits allowed by the custodian.
(d) Expense ratios for the years ended March 31, 1999, March 31, 1998, March
31, 1997 and March 31, 1996 are shown gross of custody credits (Note 3)
in accordance with SEC regulations. These credits are generated by inter-
est earned on uninvested cash balances maintained by the Funds, and are
used to offset custodial expenses of the Fund. This column shows the
Funds' expense ratios net of such credits.
(e) Per share numbers have been calculated using the average shares method.
(f) Net investment income per share and the net investment income ratio would
have been lower without a certain investment strategy followed by the
subadvisor during the fiscal year ended March 31, 1997.
(g) Represents $2.42 per share of distributions from realized capital gains
and $0.03 per share of a return of capital.
(h) Represents $0.05 per share of distributions from net investment income
and $0.02 per share of a return of capital for Ordinary Shares and $0.07
per share of distributions from net investment income and $0.03 per share
of a return of capital for Institutional Shares.
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
28
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Organization of the Trust.
The Quantitative Group of Funds (the "Trust") is organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended, as a non-diversified, open-end management investment company. The
Trust currently has six series (individually a "Fund" and collectively the
"Funds") each with a distinct investment objective: Quantitative Small Cap,
Quantitative Mid Cap, Quantitative Growth and Income, Quantitative Interna-
tional Equity, Quantitative Emerging Markets, and Quantitative Foreign Value.
The Quantitative Small Cap Fund ("Small Cap") seeks maximum long-term capital
appreciation by investing primarily in common stocks of companies with smaller
($1 billion or less) market capitalizations or larger companies with higher
than average expected earnings growth rates.
The Quantitative Mid Cap Fund ("Mid Cap") seeks long-term growth of capital by
investing primarily in common stock of companies with medium ($1 billion to $5
billion) market capitalizations.
The Quantitative Growth and Income Fund ("Growth and Income") seeks long-term
growth of capital and income by investing primarily in common stocks of larger
companies having substantial equity capital that are currently paying divi-
dends.
The Quantitative International Equity Fund ("International Equity") seeks long-
term capital growth and income by investing primarily in foreign securities.
Generally, the Fund invests in Western Europe, Australia, and the larger capi-
tal markets in the Far East.
The Quantitative Emerging Markets Fund ("Emerging Markets") seeks long-term
growth of capital by investing in securities of foreign issuers located in
emerging markets.
The Quantitative Foreign Value Fund ("Foreign Value") seeks long-term capital
growth and income by investing in a diversified portfolio consisting primarily
of foreign securities. Generally, the Fund invests in Western Europe, Austra-
lia, and the larger capital markets in the Far East. The Fund may also invest
in emerging markets.
2. Significant Accounting Policies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles for investment compa-
nies, which require management to make estimates and assumptions that affect
the reported amounts and disclosures in the financial statements. Actual re-
sults could differ from these estimates.
Security Valuation.
Portfolio securities are valued each business day at the last reported sale
price on the principal exchange or market on which they are traded. If there is
no such reported sale, the securities are valued at the mean between the last
reported bid and asked price. Short-term investments that mature in 60 days or
less are valued at amortized cost. Securities quoted in foreign currencies are
translated into U.S. dollars based upon the prevailing exchange rate on each
business day. Other securities for which no quotations are readily available
are valued at fair value as determined in good faith using procedures approved
by the Trustees.
Security Transactions and Related Investment Income.
Security transactions are accounted for on the trade date (the date the order
to buy or sell is executed). Dividend income is recorded on the ex-dividend
date, except that certain dividends from foreign securities are recorded as
soon as the Funds are informed of the ex-dividend date. Interest income is re-
corded on the accrual basis. In determining the net gain or loss on securities
sold, the cost of securities is determined on the identified cost basis. Each
Fund's investment income and realized and unrealized gains and losses are allo-
cated among classes based upon the daily relative net assets.
Repurchase Agreements.
The Funds' custodian takes possession through the federal book-entry system of
securities collateralizing repurchase agreements. Collateral is marked-to-mar-
ket daily to ensure that the market value of the underlying assets remains suf-
ficient to protect the Funds. The Funds may experience costs and delays in liq-
uidating the collateral if the issuer defaults or enters into bankruptcy.
Options.
Premiums received by the Funds 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 Funds realize a gain or loss, and the liability is eliminated. The
Funds continue to bear the risk of adverse movements in the price of the under-
lying 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. Pur-
chased options and the liability related to premiums received on written op-
tions are valued based upon their quoted daily settlement price.
Foreign Currency Transactions.
All monetary items denominated in foreign currencies are translated into U.S.
dollars based on the prevailing exchange rate at the close of each business
day. Income and expenses denominated in foreign currencies are translated at
the prevailing rates of exchange when accrued or incurred.
- --------------------------------------------------------------------------------
29
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
NOTES TO FINANCIAL STATEMENTS--Continued
- -------------------------------------------------------------------------------
Reported net realized gains and losses on foreign currency transactions
represent net gains and losses from currency gains and losses realized between
the trade and settlement dates on investment transactions, and the difference
between the amount of net investment income accrued and the U.S. dollar amount
actually received. The effects of changes in foreign currency exchange rates
on investments in securities are not segregated in the Statement of Operations
from the effects of changes in market prices of those securities, but are
included with the net realized and unrealized gain or loss on investments.
Restricted Securities.
The Funds are permitted to invest in securities that are subject to legal or
contractual restrictions on resale. These securities may be resold in transac-
tions exempt from registration or to the public if the securities are regis-
tered. One type of exempt transaction is a sale to certain qualified institu-
tional buyers under Rule 144A of the Securities Act of 1933. Disposal of these
securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. At the end of the period,
$898,950, or 9% of the net assets of Emerging Markets, was invested in re-
stricted securities.
Expenses.
The majority of the expenses of the Funds are attributed to the individual
Funds for which they are incurred. Expenses that are not attributed to a spe-
cific Fund are allocated in proportion to the respective net assets of the
Funds. Expenses allocable to a Fund are borne pro rata by the holders of both
classes of shares of such Fund, except that 12b-1 Plan expenses will not be
borne by the holders of Institutional Shares and each class has its own trans-
fer agency fee.
3. Management Fee, Advisory Contracts and Other Affiliate Transactions.
The Funds have entered into a management agreement with Quantitative Advisors,
Inc. (the "Manager"). Compensation of the Manager, for management and adminis-
tration of the Funds, including selection and monitoring of the portfolio ad-
visors, is paid monthly based on the average daily net asset value of each
Fund for the month. The annual rate of such fees is 1.00% of the average daily
net asset value of Small Cap, Mid Cap, International Equity and Foreign Value;
0.75% of the average daily net asset value of Growth and Income; and 0.80% of
the average daily net asset value of Emerging Markets.
Under the management agreement, the Manager has agreed to reduce its
compensation, and if necessary, assume expenses, with respect to Small Cap,
Growth and Income, and International Equity to the extent that the total
expenses of any of these Funds individually exceed 2% of average net asset
value for any fiscal year. The distribution agreement calls for the
Distributor to reduce its fee similarly after the Manager's fee has been
eliminated. The Manager has also voluntarily agreed to waive fees or assume
certain operating expenses of Mid Cap and Emerging Markets in order to reduce
the total expenses of these Funds to no more than 1.65% and 2.25%,
respectively, of their average net assets. Fund expenses subject to this
limitation are exclusive of brokerage, interest, taxes and extraordinary
expenses, which include incremental custody costs associated with
international securities. Expenses are calculated gross of custody credits, if
applicable.
For the year ended March 31, 1999, the fees waived or expenses reimbursed by
the Manager amounted to $69 and $23,833 for Mid Cap and Emerging Markets re-
spectively. The aggregate management fees paid by the Funds, net of fees
waived or reimbursed by the Manager, amounted to $1,648,282.
The Manager has entered into advisory contracts with the following advisors
(collectively the "Advisors") to provide investment advisory services to the
following Funds: Columbia Partners, L.L.C., Investment Management (Small Cap,
Mid Cap), State Street Bank and Trust Company (Growth and Income), Indepen-
dence International Associates, Inc. (International Equity, Emerging Markets),
and Polaris Capital Management, Inc. (Foreign Value).
For services rendered, the Manager pays to the Advisor of a Fund a fee based
on a percentage of the average daily net asset value of the Fund. The fee for
each Fund is determined separately. The fees paid by the Manager to the Advi-
sors of the Funds are as follows: Small Cap and International Equity--0.50% of
average daily total net assets; Mid Cap and Emerging Markets--0.40% of average
daily total net assets; Growth and Income--0.375% of the first $20 million and
0.30% of amounts in excess of $20 million of average daily total net assets,
with an annual minimum of $25,000; and Foreign Value--0.35% of the first $30
million and 0.50% of amounts in excess of $30 million of average daily total
net assets.
The Funds have entered into a distribution agreement with U.S. Boston Capital
Corporation (the "Distributor"). For its services under the distribution
agreement, the Distributor receives a monthly fee at the annual rate of (i)
0.50% of the average net asset value of Ordinary Shareholder accounts of Small
Cap, Growth and Income, International Equity and Emerging Markets and (ii)
0.25% of the average net asset value of Ordinary Shareholder accounts of Mid
Cap and Foreign Value open during the period the plan is in effect. Prior to
August 1, 1996, the annual rate for Mid Cap accounts
- --------------------------------------------------------------------------------
30
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
NOTES TO FINANCIAL STATEMENTS--Continued
- --------------------------------------------------------------------------------
was 0.50%. Holders of Institutional Shares bear no portion of the 12b-1 Plan
expense of the Funds and are not entitled to vote on matters involving the 12b-
1 Plan. For the year ended March 31, 1999, the Distributor voluntarily agreed
to waive its fees in part with respect to Mid Cap, which amounted to $30,678.
During the year ended March 31, 1999, the aggregate fees paid by the Funds
pursuant to such distribution plan, net of fees waived by the Distributor,
amounted to $789,740.
A deferred sales charge amounting to 1% of the net asset value of Ordinary
Shares redeemed of Small Cap, Growth and Income, International Equity, Emerging
Markets and Foreign Value is withheld from the redemption proceeds and paid to
the Distributor. The deferred sales charge is also imposed on redemptions of
Ordinary Shares of Mid Cap purchased prior to August 1, 1996. The deferred
sales charge is not imposed on redemptions of Institutional Shares and certain
other transactions. The Funds have been advised that during the year ended
March 31, 1999, such sales charges earned by the Distributor were $223,650.
Transfer agent functions are provided to the Funds by Quantitative
Institutional Services, a division of the Manager (the "Transfer Agent")
pursuant to a transfer agent agreement. The transfer agent agreement provides
for base fees that are payable to the Transfer Agent at an annual rate of 0.13%
of the aggregate average daily net asset value of each class of shares of each
Fund and for reimbursement of out of pocket expenses. During the year ended
March 31, 1999, the aggregate fees, net of fees waived by the Transfer Agent,
paid by the Funds pursuant to such agreement amounted to $257,751. For the year
ended March 31, 1999, the Transfer Agent voluntarily agreed to waive its fees
with respect to Foreign Value that amounted to $7,115.
Custody and fund accounting services are provided by Investors Fiduciary Trust
Company ("IFTC"), a wholly owned subsidiary of State Street Bank and Trust
Company. Custody credits generated by interest earned on uninvested cash
balances maintained by the Funds are used to offset custodial expenses of the
Funds. For the year ended March 31, 1999, IFTC voluntarily agreed to waive its
minimum fees in part with respect to Foreign Value, which amounted to $14,583.
Each Trustee receives an annual Trustee's fee of $4,000 allocated to each Fund
in proportion to the respective net assets of the Funds.
4. Federal Income Taxes.
It is the policy of the Funds to distribute all of their taxable income within
the prescribed time and otherwise comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies. Therefore, no
Federal income tax provision is required.
For the year ended March 31, 1999, certain reclassification adjustments were
made between undistributed net investment income/(loss), accumulated net real-
ized gain/(loss), accu- mulated net realized gain/(loss), and shares of benefi-
cial interest due to differences between book and tax accounting, primarily due
to current year net operating losses for Small Cap, Mid Cap and Growth and In-
come; passive foreign investment company holdings for International Equity,
Emerging Markets and Foreign Value; and currency translation for International
Equity, Emerging Markets and Foreign Value.
At March 31, 1999, Small Cap, International Equity, and Foreign Value had capi-
tal loss carryovers amounting to $4,491,041, $316,207, and $281,820 respec-
tively that will expire on March 31, 2007. Emerging Markets had a capital loss
carryover amounting to $2,318,830 of which $28,816 will expire on March 31,
2005 and $2,290,014 will expire on March 31, 2007. Small Cap, Emerging Markets,
and Foreign Value also had post October loss deferrals amounting to $986,725,
$307,465, and $7,480 respectively. To the extent that these losses are used to
offset any future capital gains realized during the carryover period, no capi-
tal gains tax liabilities will be incurred by the Funds for gains realized and
not distributed.
5. Purchases and Sales.
During the year ended March 31, 1999, purchases of investment securities other
than U.S. Government obligations and short-term investments, for Small Cap, Mid
Cap, Growth and Income, International Equity, Emerging Markets and Foreign
Value were $65,948,066, $24,211,375, $67,250,329, $34,126,362, $5,688,530 and
$9,679,885, respectively. Sales of such securities for the Funds were
$74,721,354, $26,506,205, $70,917,503, $42,086,675, $4,230,298, and $984,497,
respectively. Purchases and sales of U.S. Government obligations were
$1,997,925 and $1,999,908 respectively for International Equity.
6. Securities Loans.
As of March 31, 1999, International Equity loaned common stocks having a value
of $1,131,821 and received cash collateral of $1,175,635 for these loans.
Security lending income of $13,202 collected by IFTC was recorded in interest
income on the Statement of Operations.
7. Contingent Liability.
The Trust insures itself and all Funds under a policy with ICI Mutual Insurance
Company. The annual premium is allocated among the Funds and Quantitative
Institutional Services. Additionally, the Funds have committed up to 300% of
the annual premium, one third of which was provided in cash, with each Fund's
pro rata portion recorded as an asset. The remainder is secured with an
irrevocable letter of credit.
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31
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
NOTES TO FINANCIAL STATEMENTS--Continued
- --------------------------------------------------------------------------------
8. Shares of Beneficial Interest.
The following schedule shows the number of shareholders each owning 5% or
more of a Fund and the total percentage of the Fund held by such shareholders.
<TABLE>
<CAPTION>
5% or Greater Shareholders
---------------------------------
Fund Number % of Fund Held
<S> <C> <C>
Small Cap Inst. 7 78%
Mid Cap Ord. 2 17%
Mid Cap Inst. 7 85%
Growth and Income Inst. 4 84%
International Equity Inst. 1 92%
Emerging Markets Inst. 3 95%
Foreign Value Ord. 3 17%
Foreign Value Inst. 2 100%
</TABLE>
9. Concentration of Risk.
The relatively large investments of Emerging Markets in Latin American and
Southeast Asian countries with limited or developing capital markets may in-
volve greater risks than investments in more developed markets and the prices
of such investments may be volatile. The consequences of political, social or
economic changes in these markets may have disruptive effects on the market
prices of the Fund's investments and the income they generate, as well as the
Fund's ability to repatriate such amounts.
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32
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
NOTES TO FINANCIAL STATEMENTS--Continued
- --------------------------------------------------------------------------------
10. Transactions in Shares of Beneficial Interest.
Transactions in shares of beneficial interest were as follows:
Year Ended Year Ended
March 31, 1999 March 31, 1998
--------------------- ---------------------
Shares Dollars Shares Dollars
Small Cap
Ordinary Shares:
Shares sold 321,309 $ 4,921,114 356,461 $ 6,027,298
Shares issued in reinvestment of
distributions -- -- 550,052 8,762,319
Shares redeemed (819,305) (12,593,183) (947,877) (15,988,184)
-------- ----------- -------- -----------
Net change (497,996) (7,672,069) (41,364) (1,198,567)
======== ----------- ======== -----------
Institutional Shares:
Shares sold 165,132 2,572,359 76,347 1,343,153
Shares issued in reinvestment of
distributions -- -- 34,000 558,954
Shares redeemed (198,357) (3,132,927) (360,913) (6,164,447)
-------- ----------- -------- -----------
Net change (33,225) (560,568) (250,566) (4,262,340)
======== ----------- ======== -----------
Total net change for fund $(8,232,637) $(5,460,907)
=========== ===========
Mid Cap
Ordinary Shares:
Shares sold 130,228 $ 2,026,572 323,072 $ 4,936,609
Shares issued in reinvestment of
distributions 23,434 339,321 153,778 2,265,150
Shares redeemed (302,112) (4,291,004) (161,738) (2,497,310)
-------- ----------- -------- -----------
Net change (148,450) (1,925,111) 315,112 4,704,449
======== ----------- ======== -----------
Institutional Shares:
Shares sold 24,035 385,114 24,031 362,791
Shares issued in reinvestment of
distributions 1,327 19,447 8,065 120,011
Shares redeemed (40,432) (637,880) (8,069) (125,877)
-------- ----------- -------- -----------
Net change (15,070) (233,319) 24,027 356,925
======== ----------- ======== -----------
Total net change for fund $(2,158,430) $ 5,061,374
=========== ===========
Growth and Income
Ordinary Shares:
Shares sold 360,216 $ 7,546,886 411,100 $ 7,998,681
Shares issued in reinvestment of
distributions 298,358 6,059,646 253,654 4,723,028
Shares redeemed (508,956) (10,464,456) (322,168) (6,086,768)
-------- ----------- -------- -----------
Net change 149,618 3,142,076 342,586 6,634,941
======== ----------- ======== -----------
Institutional Shares:
Shares sold 59,785 1,255,152 85,691 1,602,542
Shares issued in reinvestment of
distributions 13,464 274,384 10,834 201,396
Shares redeemed (36,264) (743,619) (18,462) (329,016)
-------- ----------- -------- -----------
Net change 36,985 785,917 78,063 1,474,922
======== ----------- ======== -----------
Total net change for fund $ 3,927,993 $ 8,109,863
=========== ===========
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33
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
NOTES TO FINANCIAL STATEMENTS--Continued
- --------------------------------------------------------------------------------
Year Ended Year Ended
March 31, 1999 March 31, 1998
---------------------- ---------------------
Shares Dollars Shares Dollars
International Equity
Ordinary Shares:
Shares sold 201,594 $ 2,372,212 465,824 $ 5,430,040
Shares issued in reinvestment
of distributions 4,912 54,669 102,951 1,093,343
Shares redeemed (964,017) (11,074,145) (365,138) (4,141,960)
-------- ------------ -------- -----------
Net change (757,511) (8,647,264) 203,637 2,381,423
======== ------------ ======== -----------
Institutional Shares:
Shares sold 21,428 259,064 5,215 55,388
Shares issued in reinvestment
of distributions 587 6,538 7,592 80,395
Shares redeemed (218) (2,647) (26,843) (308,828)
-------- ------------ -------- -----------
Net change 21,797 262,955 (14,036) (173,045)
======== ------------ ======== -----------
Total net change for fund $ (8,384,309) $(2,208,378)
============ ===========
Emerging Markets
Ordinary Shares:
Shares sold 237,299 $ 1,587,802 308,029 $ 2,634,998
Shares issued in reinvestment
of distributions 14,903 87,929 -- --
Shares redeemed (171,261) (1,078,284) (195,299) (1,708,550)
-------- ------------ -------- -----------
Net change 80,941 597,447 112,730 926,448
======== ------------ ======== -----------
Institutional Shares:
Shares sold 88,509 526,429 2,349 17,973
Shares issued in reinvestment
of distributions 404 2,398 -- --
Shares redeemed (2) (15) (4,047) (28,360)
-------- ------------ -------- -----------
Net change 88,911 528,812 (1,698) (10,387)
======== ------------ ======== -----------
Total net change for fund $ 1,126,259 $ 916,061
============ ===========
Foreign Value*
Ordinary Shares:
Shares sold 964,692 $ 8,959,698
Shares issued in reinvestment
of distributions 2,345 19,694
Shares redeemed (72,777) (646,297)
-------- ------------
Net change 894,260 8,333,095
======== ------------
Institutional Shares:
Shares sold 47,949 403,246
Shares issued in reinvestment
of distributions -- --
Shares redeemed -- --
-------- ------------
Net change 47,949 403,246
======== ------------
Total net change for fund $ 8,736,341
============
* From the commencement of operations on May 15, 1998.
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34
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Trustees of the Quantitative Group of Funds
In our opinion, the accompanying statements of assets and liabilities, includ-
ing the related portfolios of investments, and the related statements of opera-
tions and of changes in net assets and the financial highlights present fairly,
in all material respects, the financial position of the Quantitative Small Cap
Fund, Quantitative Mid Cap Fund, Quantitative Growth and Income Fund, Quantita-
tive International Equity Fund, Quantitative Emerging Markets Fund, and Quanti-
tative Foreign Value Fund (hereafter referred to as the "Funds") at March 31,
1999, the results of each of their operations, the changes in each of their net
assets and financial highlights for each of the periods indicated, in confor-
mity with generally accepted accounting principles. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Funds' management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted au-
diting standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of mate-
rial misstatement. An audit includes examining, on a test basis, evidence sup-
porting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 1999 by corre-
spondence with the custodian and brokers, provide a reasonable basis for the
opinion expressed above.
PricewaterhouseCoopers LLP
Boston, MA
May 17, 1999
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35
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
Shareholder Votes
During the 12 months ended March 31, 1999, a purchase of the shares of the Man-
ager held by one of its shareholders by the two remaining shareholders and
their spouses resulted in a termination of the existing Management Agreement
with the Manager and the existing Advisory Contracts with the Advisors.
On January 11, 1999, prior to the purchase, there was a special meeting of the
shareholders of the Funds. The shareholders of each Fund were asked to each ap-
prove a new Management Agreement between their respective Funds and the Manager
and new advisory contracts between the Manager and the Advisor to the respec-
tive Funds. The new contracts contained substantially the same terms as the old
contracts.
The following were the results of the votes:
To approve the new Management Agreement:
Fund In Favor Opposed Abstained
Small Cap 2,016,795.748 13,218.594 46,102.274
Mid Cap 472,824.184 1,616.430 24,345.722
Growth and Income 1,770,214.625 24,317.600 32,081.384
International Equity 1,320,414.631 522.830 963.679
Emerging Markets 852,431.361 0.000 213,466.400
Foreign Value 552,104.876 0.000 0.000
There were no broker non-votes submitted.
To approve the Advisory Contracts between the Manager and Columbia Partners LLC
Investment Management for Small Cap and Mid Cap:
Fund In Favor Opposed Abstained
Small Cap 2,012,971.363 15,221.003 47,924.250
Mid Cap 472,824.184 1,616.430 24,345.722
There were no broker non-votes submitted.
To approve the Advisory Contract between the Manager and State Street Bank and
Trust Company for Growth and Income:
Fund In Favor Opposed Abstained
Growth and Income 1,770,214.625 24,435.510 33,963.474
There were no broker non-votes submitted.
To approve the Advisory Contracts between the Manager and Independence Interna-
tional Associates, Inc. for International Equity and Emerging Markets:
Fund In Favor Opposed Abstained
International Equity 1,320,150.217 687.244 963.679
Emerging Markets 852,431.361 0.000 213,466.400
There were no broker non-votes submitted.
To approve the Advisory Contract between the Manager and Polaris Capital Man-
agement, Inc. for Foreign Value:
Fund In Favor Opposed Abstained
Foreign Value 552,104.876 0.000 0.000
There were no broker non-votes submitted.
In addition, at the meeting on January 11, 1999, shareholders the Funds were
asked to each approve a proposal to permit the Manager to enter into new or
amended Advisory Contracts with Advisors without obtaining shareholder approv-
al. The following were the results of the votes:
Fund In Favor Opposed Abstained
Small Cap 1,955,174.781 72,847.981 48,093.854
Mid Cap 433,723.438 40,453.330 24,609.569
Growth and Income 1,693,232.550 101,299.675 32,081.384
International Equity 1,281,017.566 39,819.895 963.679
Emerging Markets 844,431.361 8,000.000 213,466.370
Foreign Value 552,104.876 0.000 0.000
There were no broker non-votes submitted, and no other proposals voted on at
such meeting.
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36
<PAGE>
[LOGO OF QUANTITATIVE GROUP OF FUNDS APPEARS HERE]
55 Old Bedford Road
Lincoln, MA 01773
voice 800-331-1244
fax 781-259-1166
www.quantfunds.com
Distributed by U.S. Boston Capital Corp.