<PAGE>
QUANT FUNDS
SEMI-ANNUAL
REPORT
SEPTEMBER 30, 2000
U.S. EQUITY FUNDS
Quant Small Cap Fund
Quant Mid Cap Fund
Quant Growth and Income Fund
INTERNATIONAL EQUITY FUNDS
Quant International Equity Fund
Quant Emerging Markets Fund
Quant Foreign Value Fund
<PAGE>
November 18, 2000
[LOGO OF QUANT FUNDS]
Dear Fellow Shareholder:
I am pleased to provide you with the Semi-Annual Report for the
Quant Funds for the six-month period from April 1, 2000 through
September 30, 2000. We believe that the domestic and interna-
tional funds continue to offer a compelling solution to meeting
your long-term financial goals even considering the significant
market volatility that has occurred over the past six months. As
the year comes to a close, we believe that each of the fund's
portfolios remain well positioned to take advantage of the mar-
ket opportunities in the upcoming year as well as the remainder
of the fiscal year.
Despite the volatility in specific sectors (technology and tele-
communications), management remained focused on their consistent
and disciplined investment approach. The domestic funds posted
solid returns, with our small and mid cap strategies showing
very strong returns over the period. The international funds
faced similar market challenges as the domestic funds throughout
the period. Our foreign value fund was able to select good value
companies in a turbulent overseas environment over the semi-an-
nual reporting period as opposed to some of the international
growth companies that struggled over the same reporting period.
In any market environment, our domestic and international fund
managers continue to look for companies with solid business mod-
els and positive earnings estimates.
We are committed to helping you reach your long-term investment
goals. Please access our web site at www.QuantFunds.com where we
update fund prices as well as fund and benchmark performance
daily. Additionally, we are continually posting new press re-
leases and interactive tools for you to use. As a shareholder of
the Quant Funds, you are now able to look up your current and
historical account balances daily as well as make subsequent
purchases online. For potential shareholders, we have an inter-
active online mutual fund application that makes it simple to
open a new Quant Funds account. We believe you will be extremely
pleased at how easy it is to open an account with the Quant
Funds.
We continue to strive to provide value to our shareholders by
remaining devoted to our discipline and our long-term view of
the market. We are available by phone (1-800-331-1244) or email
([email protected]) at any time to answer your questions and
provide assistance. We encourage you to check our web site
weekly at www.QuantFunds.com. Thank you very much and best of
luck in your investing endeavors.
Sincerely,
/s/ Willard L. Umphrey
Willard L. Umphrey
President
1
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT SMALL CAP FUND
-------------------------------------------------------------------------------
COMMON STOCK--96.4%
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
APPAREL & TEXTILES--0.6%
Dress Barn Inc. (a) 21,605 $ 453,705
-----------
BANKS--1.6%
Wilmington Trust Corporation 23,805 1,276,543
-----------
BROADCASTING--0.4%
Regent Communications Inc. (a) 54,010 300,431
-----------
BUSINESS SERVICES--5.5%
BISYS Group (a) 10,865 840,000
Henry (Jack) & Associates 45,730 1,983,539
LifeMinders Inc. (a) 26,510 608,073
TMP Worldwide Inc. (a) 13,030 1,048,915
-----------
4,480,527
-----------
CHEMICALS--0.8%
Grace (W.R.) & Company (a) 20,145 138,497
Millenium Chemicals Inc. 34,840 516,067
-----------
654,564
-----------
COMPUTERS & BUSINESS EQUIPMENT--2.7%
CacheFlow Inc. (a) 7,960 1,138,280
VerticalNet Inc. (a) 31,320 1,100,115
-----------
2,238,395
-----------
CONSTRUCTION & MINING EQUIPMENT--0.8%
Grant Pride Inc. (a) 29,930 656,589
-----------
DOMESTIC OIL--1.4%
UTI Energy Corporation (a) 24,990 1,115,179
-----------
DRUGS & HEALTHCARE--12.8%
Cell Therapeutics Inc. (a) 20,755 1,384,099
Lexicon Genetics Inc. (a) 19,860 628,073
Medicis Pharmaceutical (a) 23,645 1,454,168
Mid Atlantic Medical Services (a) 93,410 1,412,826
Orthodontic Center of America (a) 78,520 2,615,697
Priority Healthcare Corporation (a) 5,740 437,675
St. Jude Medical Inc. (a) 18,370 936,870
Sybron International (a) 16,675 400,200
Tularik Inc. (a) 34,740 1,146,420
-----------
10,416,028
-----------
ELECTRICAL EQUIPMENT--4.7%
Amphenol Corporation (a) 24,085 1,371,340
Cable Design Technologies (a) 102,292 2,486,974
-----------
3,858,314
-----------
ELECTRONICS--7.8%
DMC Stratex Networks (a) 51,385 825,372
Exar Corporation (a) 19,182 2,321,022
Integrated Device Technology (a) 18,755 1,697,327
Littlefuse Inc. (a) 12,920 383,562
Sensormatic Electronics Corporation (a) 74,740 1,121,100
-----------
6,348,383
-----------
FINANCIAL SERVICES--3.4%
IndyMac Bancorp (a) 77,520 1,594,005
Metris Companies 30,730 1,213,835
-----------
2,807,840
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
FOOD & BEVERAGE--1.7%
Suiza Foods Corporation (a) 26,795 $ 1,358,171
-----------
GAS EXPLORATION--3.2%
Chesapeake Energy Corporation (a) 117,316 843,209
Global Marine Inc. (a) 56,250 1,736,718
-----------
2,579,927
-----------
HOTELS & RESTAURANTS--1.4%
Darden Restaurants Inc. 56,555 1,177,051
-----------
INSURANCE--2.6%
Everest Reinsurance Group 27,905 1,381,297
RenaissanceRe Holdings 11,735 750,307
-----------
2,131,604
-----------
INTERNATIONAL OIL--0.8%
Trico Marine Services Inc. (a) 39,935 633,968
-----------
INVESTMENT COMPANIES--0.9%
American Capital Strategies Ltd. 32,430 768,186
-----------
LIQUOR--1.6%
Coors Adolph Company 20,485 1,294,396
-----------
MISCELLANEOUS--2.2%
United Rentals Inc. (a) 75,710 1,826,504
-----------
PETROLEUM SERVICES--2.2%
Devon Energy Corporation 29,445 1,771,117
-----------
PUBLISHING--2.7%
Scholastic Corporation (a) 27,710 2,204,677
-----------
REAL ESTATE--8.1%
Arden Realty 44,390 1,190,207
CarrAmerica Realty Corporation 42,040 1,271,710
Entertainment Properties Trust 14,525 154,328
Healthcare Realty Trust 39,380 831,902
Highwoods Properties 43,370 1,024,616
Kilroy Realty Corporation 41,585 1,109,800
SL Green Realty Corporation 37,840 1,061,885
-----------
6,644,448
-----------
RETAIL TRADE--8.0%
American Eagle Outfitters (a) 41,585 1,309,927
BJ's Wholesale Club 35,125 1,198,641
Chico's Fashions Inc.(a) 75,725 2,574,650
Genesco Inc.(a) 21,345 361,531
Williams-Sonoma (a) 31,630 1,129,514
-----------
6,574,263
-----------
SOFTWARE--11.6%
Freeshop.com Inc. (a) 80,025 225,070
NVIDIA Corporation (a) 49,330 4,038,894
Peregrine Systems Inc. (a) 62,215 1,178,197
Rational Software Corporation (a) 58,430 4,053,581
-----------
9,495,742
-----------
TECHNOLOGY--2.6%
PerkinElmer Inc. 20,637 2,153,987
-----------
</TABLE>
-------------------------------------------------------------------------------
2
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT SMALL CAP FUND--Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
TELECOMMUNICATION SERVICES--4.3%
Microcell Telecommunications (a) 34,495 $ 1,002,511
Pac-West Telecommunications Inc. (a) 67,525 616,166
Powerwave Technologies Inc. (a) 29,055 1,103,182
Western Wireless Corporation (a) 22,085 786,778
-----------
3,508,637
-----------
TOTAL COMMON STOCK
(Cost $54,966,189) 78,729,176
-----------
SHORT TERM INVESTMENTS--4.1%
<CAPTION>
Par Value Value
<S> <C> <C>
State Street Bank & Trust Repurchase Agreement 3.50%,
10/2/00, (Dated 9/29/00), Collateralized by
$3,040,000 U.S. Treasury Bond 7.125%, 2/15/23, Mar-
ket Value $3,445,062, Repurchase Proceeds $3,374,984
(Cost $3,374,000) $3,374,000 $ 3,374,000
-----------
TOTAL INVESTMENTS--100.5%
(Cost $58,340,189) (b) 82,103,176
OTHER ASSETS & LIABILITIES (NET)--(0.5)% (435,908)
-----------
NET ASSETS--100% $81,667,268
===========
</TABLE>
(a) Non-income producing security.
(b) At September 30, 2000, the unrealized appreciation of investments based on
aggregate cost for federal tax purposes of $58,340,189 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $27,407,275
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (3,644,288)
-----------
Net unrealized appreciation $23,762,987
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
--------------------------------------------------------------------------------
3
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT MID CAP FUND
-------------------------------------------------------------------------------
COMMON STOCK--93.4%
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
AIR TRAVEL--1.6%
Delta Air Lines 7,365 $ 326,822
-----------
AUTOMOBILES--1.9%
Harley-Davidson Inc. 7,760 371,510
-----------
BANKS--2.2%
Zions Bancorp 8,665 443,133
-----------
BUSINESS SERVICES--3.9%
Robert Half International (a) 14,815 513,895
Young & Rubicam Inc. 5,400 267,300
-----------
781,195
-----------
CHEMICALS--1.3%
Martin Marietta Materials Inc. 6,775 259,347
-----------
COMPUTERS & BUSINESS EQUIPMENT--6.8%
Cobalt Networks (a) 6,790 392,971
Qlogic Corporation (a) 2,810 247,280
Redback Networks Inc. (a) 2,010 329,514
Wind River Systems Inc. (a) 8,505 407,709
-----------
1,377,474
-----------
DOMESTIC OIL--5.1%
Baker Hughes Inc. 12,770 474,086
Tidewater Inc. 12,005 546,228
-----------
1,020,314
-----------
DRUGS & HEALTHCARE--11.5%
Allergan, Inc. 5,195 438,653
ALZA Corporation (a) 2,725 235,712
Forest Labs (a) 4,850 556,234
Health Management Association (a) 10,690 222,486
King Pharmaceuticals (a) 12,720 425,325
Shire Pharmaceutical Group PLC (a) 8,430 435,199
-----------
2,313,609
-----------
ELECTRONICS--16.1%
Applied Micro Circuits (a) 3,835 794,085
Flextronics International (a) 5,327 437,480
RadioShack Corporation 5,680 367,070
Seagate Technology (a) 7,630 526,470
TranSwitch Corporation (a) 11,154 711,067
Vitesse Semiconductor (a) 4,710 418,896
-----------
3,255,068
-----------
ENERGY--1.1%
American Power Conversion (a) 11,440 219,505
-----------
FINANCIAL SERVICES--4.2%
Eaton Vance Corporation 9,320 475,320
Metris Companies 9,585 378,608
-----------
853,928
-----------
FOOD & BEVERAGE--2.0%
Suiza Foods (a) 7,985 404,740
-----------
FOREST PRODUCTS--0.5%
Georgia-Pacific Corporation 4,580 107,630
-----------
HOTELS & RESTAURANTS--1.4%
Darden Restaurants 13,295 276,702
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INSURANCE--5.6%
ACE Limited 10,405 $ 408,396
Allmerica Financial Corporation 6,130 391,937
Lincoln National Corporation 6,795 327,009
-----------
1,127,342
-----------
INVESTMENT COMPANIES--3.7%
Bear Stearns Companies Inc. 6,305 397,215
Waddell & Reed Financial Inc. 11,380 352,780
-----------
749,995
-----------
PETROLEUM SERVICES--5.8%
BJ Services Company (a) 6,595 403,120
ENSCO International 10,965 419,411
Weatherford International 8,165 351,095
-----------
1,173,626
-----------
PUBLISHING--1.3%
Reader's Digest Association 7,605 268,551
-----------
RETAIL TRADE--2.9%
BJ's Wholesale Club (a) 10,535 359,507
Family Dollar Stores 11,755 226,284
-----------
585,791
-----------
SOFTWARE--7.6%
Inktomi Corporation (a) 2,730 311,220
Network Appliance Inc. (a) 3,525 448,997
Rational Software (a) 11,140 772,837
-----------
1,533,054
-----------
TELECOMMUNICATION SERVICES--5.3%
Broadwing Inc. (a) 13,825 353,402
Sonus Networks (a) 2,820 356,377
Terayon Communications Systems (a) 5,375 182,414
Williams Communications Group (a) 8,490 169,800
-----------
1,061,993
-----------
UTILITIES--1.6%
Montana Power Company 9,635 321,568
-----------
TOTAL COMMON STOCK
(Cost $14,019,391) 18,832,897
-----------
</TABLE>
-------------------------------------------------------------------------------
4
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT MID CAP FUND--Continued
--------------------------------------------------------------------------------
SHORT TERM INVESTMENTS--7.1%
<TABLE>
<CAPTION>
Par Value Value
<S> <C> <C>
State Street Bank & Trust Repurchase Agreement 3.5%,
10/2/00, (Dated 9/29/00), Collateralized by
$1,150,000 U.S. Treasury Bond 8.50%, 2/15/20, Mar-
ket Value $1,469,938, Repurchase Proceeds
$1,440,420 (Cost $1,440,000). $1,440,000 $ 1,440,000
-----------
TOTAL INVESTMENTS--100.5%
(Cost $15,459,391) (b) 20,272,897
OTHER ASSETS & LIABILITIES (NET)--(0.5%) (96,270)
-----------
NET ASSETS--100% $20,176,627
===========
(a) Non-income producing security.
</TABLE>
(b) At September 30, 2000, the unrealized appreciation of investments based on
aggregate cost for federal tax purposes of $15,459,391 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $5,404,392
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (590,886)
----------
Net unrealized appreciation $4,813,506
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
--------------------------------------------------------------------------------
5
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT GROWTH AND INCOME FUND
-------------------------------------------------------------------------------
COMMON STOCK--99.9%
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
AUTOMOBILES--1.7%
Toyota Motor Company (c) 20,000 $ 1,570,000
-----------
BANKS--1.0%
FleetBoston Financial Corporation 24,000 936,000
-----------
BROADCASTING--1.2%
Comcast Corporation (a) 26,000 1,064,375
-----------
BUSINESS SERVICES--2.6%
Automatic Data Processing 16,000 1,070,000
International Business Machines 11,000 1,237,500
-----------
2,307,500
-----------
COMPUTERS & BUSINESS EQUIPMENT--8.4%
Apple Computer (a) 24,500 630,875
Cisco Systems Inc. (a) 45,300 2,502,825
Sun Microsystems (a) 22,300 2,603,525
VeriSign Inc. (a) 9,200 1,863,575
-----------
7,600,800
-----------
DOMESTIC OIL--3.0%
Burlington Resources Inc. 73,000 2,687,313
-----------
DRUGS & HEALTHCARE--15.8%
Amgen Inc. (a) 35,000 2,443,984
Biogen Inc. (a) 20,500 1,250,500
Biovail Corporation (a) 29,000 2,361,687
Genentech Inc. 10,100 1,875,444
Medtronic, Inc. 35,100 1,818,619
Pfizer, Inc. 40,000 1,797,500
Procter & Gamble 22,000 1,474,000
Schering-Plough 25,950 1,206,675
-----------
14,228,409
-----------
ELECTRICAL EQUIPMENT--4.1%
General Electric Company 64,500 3,720,844
-----------
ELECTRONICS--8.5%
Applied Materials (a) 20,000 1,186,250
Conexant Systems Inc. (a) 41,000 1,716,875
Intel Corporation 34,900 1,450,531
NTT Docomo Inc. 7,600 1,102,000
Sony Corporation 14,000 1,413,125
Southern Energy Inc. (a) 14,326 449,478
SPX Corporation (a) 2,600 369,038
-----------
7,687,297
-----------
FINANCIAL SERVICES--11.7%
Capital One Financial 35,100 2,459,194
Citigroup Inc. 34,666 1,874,131
Goldman Sachs Group 20,105 2,290,713
Morgan Stanley Dean Witter 22,500 2,057,344
Stillwell Financial 42,600 1,853,100
-----------
10,534,482
-----------
FOOD & BEVERAGE--3.8%
Coca-Cola Company 25,000 1,378,125
PepsiCo Inc. 44,800 2,060,800
-----------
3,438,925
-----------
GAS EXPLORATION--0.6%
Noble Drilling Corporation (a) 9,800 492,450
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INSURANCE--1.2%
American International Group Inc. 11,000 $ 1,052,562
-----------
INTERNATIONAL BANKING--1.6%
HSBC Holdings (c) 20,000 1,428,000
-----------
INTERNATIONAL OIL--5.7%
Anadarko Petroleum 17,000 1,129,820
Apache Corporation 30,500 1,803,312
BP Amoco PLC (c) 16,468 872,804
Royal Dutch Petroleum (c) 22,000 1,318,625
-----------
5,124,561
-----------
PETROLEUM SERVICES--1.1%
Schlumberger Ltd. 12,000 987,750
-----------
RAILROADS & EQUIPMENT--0.1%
Kansas City Southern Industries (a) 9,500 82,531
-----------
RETAIL TRADE--3.5%
Home Depot Inc. 34,200 1,814,738
Wal-Mart Stores 28,600 1,376,375
-----------
3,191,113
-----------
SOFTWARE--8.4%
Amdocs Limited (a) 7,000 436,625
EMC Corporation 24,300 2,408,737
Microsoft Corporation (a) 40,200 2,424,563
Oracle Corporation (a) 29,300 2,307,375
-----------
7,577,300
-----------
TELECOMMUNICATION SERVICES--15.9%
AT&T Corporation 29,400 863,625
ALLTEL Corporation 19,800 1,033,313
Ericsson L.M. Telephone (c) 98,200 1,454,588
JDS Uniphase Corporation 9,730 921,309
Lucent Technologies 22,176 677,754
Motorola, Inc. 40,800 1,152,600
Nokia Corporation 36,300 1,445,194
Nortel Networks 29,400 1,751,137
Sonera Corporation PLC (c) 23,700 598,425
Sprint PCS Corporation 28,500 999,281
Vodafone Group PLC (c) 34,050 1,259,850
Voicestream Wireless Corporation (a) 11,200 1,299,900
WorldCom Inc. (a) 27,300 829,237
-----------
14,286,213
-----------
TOTAL COMMON STOCK
(Cost $67,386,855) (b) 89,998,425
OTHER ASSETS & LIABILITIES (NET)--0.1% 81,095
-----------
NET ASSETS--100% $90,079,520
===========
</TABLE>
(a) Non-income producing security.
(b) At September 30, 2000, the unrealized appreciation of investments based on
aggregate cost for federal tax purposes of $67,386,855 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $26,334,408
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (3,722,838)
-----------
Net unrealized appreciation $22,611,570
===========
</TABLE>
-------------------------------------------------------------------------------
6
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
COMMON STOCK--94.6%
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
AUSTRALIA--1.3%
CSR Limited 58,700 $ 129,015
National Australia Bank 4,500 62,183
Telstra Corporation 9,700 31,740
-----------
222,938
-----------
BELGIUM--2.0%
Fortis B 9,700 298,747
Union Miniere 1,400 49,329
-----------
348,076
-----------
DENMARK--2.4%
Group 4 Falck 550 80,099
Novo Nordisk AS 900 199,803
Tele Danmark A/S 2,450 134,890
-----------
414,792
-----------
FRANCE--9.3%
AXA-UAP 1,497 195,800
Banque Nationale De Paris 2,903 256,296
LVMH Moet Hennessy 630 47,631
Peugeot SA 373 66,356
Pinault Printemps Redo 747 131,702
Schneider Electric 600 37,860
SGS-Thomson Microelectronics (a) 7,092 348,163
Soc. Generale 1,515 84,818
Total Fina Elf 2,810 411,737
-----------
1,580,363
-----------
GERMANY--6.4%
Bayerische Hypo-Und Vereins 2,782 154,301
Degussa Huls AG 4,550 124,251
Deutsche Telekom 7,600 261,742
EM TV Merchandising 2,645 138,381
Karstadt Quelle AG 2,400 78,901
Siemens AG NPV 2,050 264,506
Thyssen Krupp AG 5,470 74,397
-----------
1,096,479
-----------
HONG KONG--3.7%
Cathay Pacific Air 128,000 234,772
Cheung Kong Holdings 14,000 168,794
Hong Kong & China Gas 30,000 37,517
South China Morning PST 140,000 106,843
Swire Pacific 14,000 87,270
-----------
635,196
-----------
IRELAND--1.5%
Waterford Wedgewood 220,400 253,212
-----------
ITALY--4.1%
ENI SPA 8,000 42,420
Istituto Banco Sao Paolo IMI SPA 22,943 373,482
Sirti SPA 124,500 180,444
Telecom Italia Mob 12,500 101,189
-----------
697,535
-----------
JAPAN--26.0%
Acom Company 1,800 150,216
Canon Inc. 9,000 399,740
Daiichi Pharmaceutical Company 5,000 127,266
Daito Trust Construction 3,200 51,897
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
JAPAN--Continued
Honda Motor Company 12,000 $ 442,858
Kansai Electric Power 6,000 97,918
Kyocera Corporation 300 45,899
Meitec Corporation 3,000 139,088
Mitsubishi Corporation 26,000 209,745
Mitsui Mining & Smelting 12,000 104,595
Murata Manufacturing Company 1,000 138,161
Nippom Telephone & Telegraph Docomo 7 201,215
Nippon Telephone & Telegraph 25 245,723
Nomura Securities 2,000 43,581
Promise Company 700 54,198
Rohm Company 1,000 274,561
Sakura Bank 11,000 82,211
Sony Corporation 2,000 203,255
Taisho Pharmaceutical Company 1,000 30,970
Takeda Chemical Industries 1,000 66,206
Takefuji Corporation 4,000 441,374
Tohuku Electric Power 11,200 157,025
Tokyo Electric Power 10,200 240,707
Toppan Printing Company 8,000 77,519
Toyota Motor Corporation 9,000 356,345
Yamato Transport 3,000 66,484
-----------
4,448,757
-----------
NETHERLANDS--4.4%
ASM Lithography HL (a) 1,200 39,875
Philips Electronics NV 3,880 167,230
Royal Dutch Petroleum 9,000 544,752
-----------
751,857
-----------
PORTUGAL--2.0%
Banco Espir Santo 3,900 62,039
Brisa Auto Estrada (a) 26,054 216,897
Portucel Industria 10,300 61,079
-----------
340,015
-----------
SINGAPORE--2.4%
Singapore Press HD 12,000 180,088
United Overseas Bank 32,000 229,997
-----------
410,085
-----------
SPAIN--2.5%
Endesa SA 9,400 176,944
Grupo Empres Ence 3,600 60,449
Iberdrola SA 14,177 180,416
-----------
417,809
-----------
SWEDEN--2.5%
Ericsson (LM) Telecommunications 22,800 347,394
Netcom AB (a) 1,600 82,205
-----------
429,599
-----------
SWITZERLAND--4.6%
Credit Suisse Group 500 93,588
Givaudan AG (a) 11 2,852
Nestle SA 30 62,585
Novartis AG 70 107,496
Sairgroup 875 125,243
Zurich Allied AG 870 402,822
-----------
794,586
-----------
</TABLE>
--------------------------------------------------------------------------------
7
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT INTERNATIONAL EQUITY FUND--Continued
-------------------------------------------------------------------------------
COMMON STOCK--Continued
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
UNITED KINGDOM--19.5%
Abbey National PLC 8,500 $ 113,010
Anglian Water 16,800 143,856
Astrazeneca 3,800 199,167
Bae Systems 18,300 98,783
Barclays PLC 6,153 170,346
BP Amoco PLC 14,800 131,764
British Telecommunications PLC 15,100 158,776
Cell Tech Group (a) 3,700 73,816
Glaxo Wellcome 5,900 178,699
Granada Group PLC (a) 4,075 38,148
HSBC Holdings PLC 30,600 435,347
Lloyds TSB Group PLC 11,500 107,317
Royal Bank of Scotland Group 10,385 219,318
Smith Kline Beecham 12,800 175,386
Thames Water 9,100 163,515
United Utilities 36,948 375,393
Vodafone Group 149,600 558,640
-----------
3,341,281
-----------
TOTAL COMMON STOCK
(Cost $15,240,278) 16,182,580
-----------
PREFERRED STOCK--3.6%
FINLAND--2.5%
Nokia (AB) OY 10,400 $ 422,051
-----------
GERMANY--0.5%
Rhein Metall AG 11,200 88,092
-----------
SWITZERLAND--0.6%
Roche Holdings AG 11 96,891
-----------
TOTAL PREFERRED STOCK
(Cost $609,724) 607,034
-----------
SHORT TERM INVESTMENTS--1.4%
<CAPTION>
Par Value Value
<S> <C> <C>
State Street Bank & Trust Repurchase Agreement 3.50%,
10/2/00, (Dated 9/29/00), Collateralized by $245,000
U.S. Treasury Bond 6.25%, 1/31/02, Market Value
$247,756, Repurchase Proceeds $239,070 (Cost
$239,000). $239,000 $ 239,000
-----------
TOTAL INVESTMENTS--99.6%
(Cost $16,089,002) (b) 17,028,614
OTHER ASSETS & LIABILITIES (NET)--0.4% 70,578
-----------
NET ASSETS--100% $17,099,192
===========
</TABLE>
(a) Non-income producing security.
(b) At September 30, 2000, the unrealized appreciation of investments based on
aggregate cost for federal tax purposes of $16,089,002 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 2,274,501
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (1,334,889)
-----------
Net unrealized appreciation $ 939,612
===========
</TABLE>
<TABLE>
<CAPTION>
SECTOR ALLOCATION (as a
percentage of Total Common
Stock and Preferred Stock)
----------------------------
<S> <C>
Basic Industries 4.3%
Capital Equipment 13.1%
Capital Goods 1.3%
Consumer Basics 7.9%
Consumer Durables 5.2%
Consumer Goods 0.3%
Consumer Non-Durables 3.7%
Consumer Services 2.4%
Energy 7.8%
Finance 25.0%
General Business 8.9%
Miscellaneous 0.5%
Technology 4.5%
Transportation 1.3%
Utilities 13.8%
</TABLE>
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
8
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT EMERGING MARKETS FUND
--------------------------------------------------------------------------------
COMMON STOCK--90.1%
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
ARGENTINA--3.0%
Banco de Galicia (a) 48,552 $ 145,745
Central Puerto SA (a) 45,000 51,782
Perez Companc SA 55,708 90,302
Telecom Argentina 20,000 87,053
-----------
374,882
-----------
BRAZIL--3.7%
Brasil Telecom Par 11,000,000 95,854
Centrais Electrobras 3,030,000 59,022
Sider Nacional Compania 2,383,000 75,369
Souza Cruz Compania 25,000 107,027
Vale Rio Doce Compania 5,500 125,488
-----------
462,760
-----------
CHILE--3.7%
Banco Santander Chile (d) 9,600 140,400
Compania De Telecomunicacion De Chile (a)(d) 4,110 71,411
Empresa Nacional De Electricidad (a)(d) 10,539 115,929
Enersis SA (a)(d) 3,000 53,438
Laboratorio Chile SA (d) 5,000 83,125
-----------
464,303
-----------
CHINA--2.4%
Huaneng Power International Inc. (a)(d) 6,600 105,600
Guangdon Electric 263,640 195,114
-----------
300,714
-----------
GREECE--7.1%
Alpha Credit Bank 4,215 166,805
Commercial Bank of Greece 2,610 133,255
Intracom 3,375 114,583
National Bank of Greece 5,101 210,234
OTE (Hellenic Telecom) 7,000 134,135
Titan Cement Company 3,200 122,055
-----------
881,067
-----------
HONG KONG--5.4%
China Merchants Holdings International 75,000 57,237
China Mobile (HK) (a) 45,000 300,135
Citic Pacific Ltd. 30,000 129,674
Cosco Pacific Ltd. 90,000 68,107
Legend Holdings 70,000 66,440
Yizheng Chemical Fibre 250,000 54,832
-----------
676,425
-----------
HUNGARY--2.1%
Matav RT 8,000 38,462
OTP Bank 2,000 103,189
Richter Gedeon Vegysze 1,000 52,935
Tiszai Vegyi Komvi 5,000 64,745
-----------
259,331
-----------
INDIA--5.5%
Baja Auto Ltd. (e) 6,000 43,200
Icici Ltd. (d) 3,000 33,000
Infosys Technologies Ltd. (d) 1,000 132,000
ITC Ltd. (e) 4,800 81,000
Larsen & Toubro (e) 6,000 40,800
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INDIA--Continued
Mahanagar Telephone Nigam (e) 14,000 $ 67,900
Mahindra & Mahindra (e) 6,000 23,100
Ranbaxy Laboratories Ltd. (e) 9,400 150,400
Reliance Industries Ltd. (b)(e)(f) 800 12,500
Satyam Infoway Ltd. (d) 3,000 40,687
State Bank of India (e) 9,000 65,700
-----------
690,287
-----------
ISRAEL--4.5%
Bank Hapoalim Bm 45,000 137,997
Bank Leumi Le Israel 35,000 78,628
Bezeq Israel Telecommunication 50,000 300,820
Gilat Satellite Networks Ltd. (a) 500 38,438
-----------
555,883
-----------
KOREA, REPUBLIC OF--7.1%
Daishin Securities (a) 3,112 27,907
Han Hwa Chemical (a) 12,694 35,288
Housing & Commercial Bank 2,200 52,083
Kookmin Credit Bank 1,100 13,119
Korea Electric Power 4,600 120,038
Korea Green Cross (a) 1,372 49,521
Korean Air Lines 10,500 64,027
LG Chemical Ltd. 3,000 37,394
LG Electronics Inc. 1,500 29,189
Namhae Chemical (a) 28,080 52,627
Pohang Iron & Steel 800 59,543
Samsung Electronics 1,900 344,169
-----------
884,905
-----------
MALAYSIA--4.0%
JT Int Bhd 50,000 47,368
Malayan Bank Bhd 25,000 96,053
Malaysian Pacific 6,000 39,868
Public Bank Bhd 70,000 57,474
Sime Darby Bhd 50,000 56,316
Tan Chong Motor Hd 150,000 50,921
Telekom Malaysia 30,000 78,947
Tenaga Nasional 25,000 74,342
-----------
501,289
-----------
MEXICO--9.1%
Apasco SA 15,000 79,432
Cemex Appreciation
(warrants exp. 12/12/02) 2,000 890
Grupo Fin Banamex AC (a) 27,000 124,248
Grupo Mexico 25,000 95,319
Grupo Televisa SA (a) 51,000 146,918
Industrias Penoles 10,000 12,709
Telefonos De Mexico 196,800 524,202
Wal-Mart De Mexico (a) 75,000 148,380
-----------
1,132,098
-----------
PERU--2.3%
Cementos Lima 3,394 40,626
Credicorp SA 5,520 40,020
Minas Buenaventura 7,805 55,788
Minsur 71,713 85,840
Union Cerv Peru Backus & Johnston 218,854 64,244
-----------
286,518
-----------
</TABLE>
--------------------------------------------------------------------------------
9
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT EMERGING MARKETS FUND--Continued
-------------------------------------------------------------------------------
COMMON STOCK--Continued
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
PHILIPPINES--1.3%
Ayala Land Inc. 210,000 $ 21,363
Manila Electric Company 19,200 22,026
Philippine Long Distance 1,600 28,052
San Miguel Corporation 31,400 33,643
SM Prime Holdings 600,000 61,039
-----------
166,123
-----------
POLAND--3.7%
BRE Bank 7,000 211,723
Elektrim (a) 6,000 54,178
KGHM Polska Miedz (a) 15,000 96,700
Polski Koncern Naf 12,000 47,687
Telekomunikacja Poland 10,000 53,648
-----------
463,936
-----------
SOUTH AFRICA--9.3%
Anglo American Platinum 5,000 192,654
Anglogold 1,000 37,145
De Beers Centenary 6,000 166,819
Impala Platinum 2,000 86,542
M Cell 17,000 68,330
Nedcor Ltd. 9,135 196,501
Reunert 30,000 46,778
Sanlam 80,000 92,030
Sappi 20,000 148,302
Sasol 15,000 118,503
-----------
1,153,604
-----------
TAIWAN--6.9%
MSCI Taiwan Index Series (a)(b)(f) 6,800 758,132
Taiwan Semiconductor Manufacturing
Company Ltd. (a)(d) 5,000 101,875
-----------
860,007
-----------
THAILAND--2.5%
Advanced Information Services (a) 5,000 42,245
Banpu Public Company (warrants exp. 1/14/03) 24,000 2,506
Charoen Pokphand Feedmill Company 44,000 4,491
Charoen Pokphand Feedmill Company (warrants exp.
6/30/02) 44,000 49,864
Delta Electronics 5,500 30,023
Electricity Generating 35,000 36,549
Hana Microelectronics 22,000 56,912
PTT Exploration & Production 20,000 50,789
TelecomAsia (a) 50,000 33,523
-----------
306,902
-----------
TURKEY--4.7%
Akbank 8,000,104 40,911
Aksa 2,625,000 50,338
Eregli Demir Ve Celik (a) 1,000,000 28,577
Sifas (a) 3,689,852 3,396
Tupras 1,200,000 48,731
Turkiye Garanti Bankasi (a) 6,372,984 54,636
Turkiye Is Bankasi 6,000,000 101,523
Usas Ucak Servisi 65,000 90,919
Vestel Electronis Sanayi (a) 592,000 109,073
Yapi Kredi Bankasi (a) 8,778,000 63,372
-----------
591,476
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
UNITED STATES--1.8%
Check Point Software (a) 1,000 $ 157,500
Orbotech Ltd. (a) 1,200 65,625
-----------
223,125
-----------
TOTAL COMMON STOCK
(Cost $11,384,016) 11,235,635
-----------
PREFERRED STOCK--5.8%
BRAZIL
Banco Bradesco SA 15,000,000 $ 124,200
Centrais Electrobras 5,380,000 109,381
Copene Petroquimic 300,000 122,083
Petrol Brasileiros 3,000 85,784
Usiminas Usi Sd Mg 26,632 151,729
Vale Rio Doce Compania 1,648 41,401
Votorantim Papel E Celulos 2,000,000 80,087
-----------
TOTAL PREFERRED STOCK
(Cost $617,473) 714,665
-----------
SHORT TERM INVESTMENTS--4.2%
<CAPTION>
Par Value Value
<S> <C> <C>
State Street Bank & Trust Repurchase
Agreement 3.50%, 10/2/00, (Dated
9/29/00), Collateralized by
$530,000 U.S. Treasury Bond
5.875%, 11/15/04, Market Value
$540,392, Repurchase Proceeds
$526,153 (Cost $526,000) $ 526,000 $ 526,000
-----------
TOTAL INVESTMENTS--100.1%
(Cost $12,527,489) (c) 12,476,300
OTHER ASSETS & LIABILITIES (NET)--(0.1)% (8,920)
-----------
NET ASSETS--100% $12,467,380
===========
</TABLE>
(a) Non-income producing security.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. (Note 2)
(c) At September 30, 2000, the unrealized depreciation of investments based on
aggregate cost for federal tax purposes of $12,527,489 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 2,226,052
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (2,277,241)
-----------
Net unrealized depreciation $ (51,189)
===========
</TABLE>
(d) ADR--American Depository Receipts
(e) GDR--Global Depository Receipts
-------------------------------------------------------------------------------
10
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT EMERGING MARKETS FUND--Continued
--------------------------------------------------------------------------------
(f) OPAL, Rule 144A stock, issued by Morgan Stanley Capital (Dela- ware) LLC.
An OPAL represents an optimised portfolio of securities designed to track
the performance of a specific benchmark index in a single trade. Emerging
Markets has the contractual right to ex- change the OPAL for the underlying
securities, which may not be restricted securities, at any time.
<TABLE>
<CAPTION>
SECTOR ALLOCATION (as a
percentage of Total Common
Stock and Preferred Stock)
---------------------------- ---
<S> <C> <C>
Basic Industries 17.6%
Business Services 1.5%
Capital Goods 5.4%
Consumer Services 0.5%
Consumer Basics 7.3%
Consumer Durables 0.6%
Consumer Non-Durables 0.8%
Energy 1.9%
Finance 27.3%
General Business 7.8%
Miscellaneous 1.6%
Real Estate 0.7%
Shelter 0.7%
Technology 6.3%
Transportation 0.6%
Utilities 19.4%
</TABLE>
The accompanying notes are an integral part of these financial statements.
--------------------------------------------------------------------------------
11
<PAGE>
[LOGO OF QUANT FUNDS]
PORTFOLIO OF INVESTMENTS September 30, 2000 (Unaudited)
QUANT FOREIGN VALUE FUND
-------------------------------------------------------------------------------
COMMON STOCK--95.0%
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
AUSTRIA--2.0%
RHI AG 12,600 $ 278,381
----------
CANADA--3.9%
GSI Lumonics Inc. (a) 8,900 146,850
Methanex Corporation (a) 74,000 363,299
Methanex Corporation (US Shares) (a) 7,000 35,437
----------
545,586
----------
FINLAND--5.8%
Kesko OYJ 35,500 313,731
Kone Corporation OYJ, Series B 8,140 496,367
----------
810,098
----------
FRANCE--7.1%
BNP Paribas 4,600 406,118
Christian Dior SA 3,040 164,017
SGS-Thomson Microelectronics NV 8,600 422,194
----------
992,329
----------
GERMANY--4.4%
Continental AG 18,600 327,111
Walter AG 15,800 286,247
----------
613,358
----------
HONG KONG--2.7%
V-Tech Holdings Ltd. 151,015 377,707
----------
INDONESIA--0.8%
PT Asahimas Flat Glass TBK 1,039,000 83,666
PT Tempo Scan Pacific TBK 72,000 25,905
----------
109,571
----------
IRELAND--2.8%
Crean (James) PLC (a) 122,059 30,204
Smurfit (Jefferson) Group 200,000 351,732
----------
381,936
----------
ITALY--4.4%
Banca Popolare Di Milano 59,500 369,659
Pirelli SPA 82,000 241,317
----------
610,976
----------
JAPAN--5.6%
Arisawa Manufacturing Company Ltd. 13,000 397,793
East Japan Railway 68 378,951
----------
776,744
----------
KOREA, REPUBLIC OF--7.2%
Samsung SDI 10,700 423,145
Samsung Electronics Ltd. 2,200 398,511
Samsung Electronics Ltd. NV (c) 144A 3,800 180,975
----------
1,002,631
----------
NETHERLANDS--9.2%
ABN-AMRO Holdings NV 16,600 387,295
Draka Holdings NV 5,784 385,926
Gamma Holdings NV 10,066 376,293
Roto Smeets de Boer 4,306 127,482
----------
1,276,996
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
SOUTH AFRICA--10.3%
Impala Platinum Holdings Ltd. 6,300 $ 272,607
Palabora Mining Company 58,050 349,185
Sanlam Ltd. 350,000 402,633
Sappi Ltd. 55,700 413,022
-----------
1,437,447
-----------
SPAIN--8.6%
Banco Bilbao Vizcaya Argentaria SA 29,700 449,355
Repsol YPF SA 16,300 300,347
Union Electrica Fenosa SA 25,100 452,737
-----------
1,202,439
-----------
THAILAND--2.7%
Total Access Communications (a) 111,900 375,984
-----------
UNITED KINGDOM--17.5%
Barratt Developments PLC 102,000 393,713
Beazer Group PLC 187,400 318,718
Bellway PLC 80,100 296,150
Billiton 133,000 475,507
Countryside Properties PLC 181,000 285,080
Crest Nicholson PLC 179,000 304,432
Lasmo 192,000 369,134
-----------
2,442,734
-----------
TOTAL COMMON STOCK
(Cost $13,896,015) (b) 13,234,917
OTHER ASSETS & LIABILITIES (NET)--5.0% 690,376
-----------
NET ASSETS--100% $13,925,293
===========
</TABLE>
(a) Non-income producing security.
(b) At September 30, 2000, the unrealized depreciation of investments based on
aggregate cost for federal tax purposes of $13,896,015 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 1,372,835
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (2,033,933)
-----------
Net unrealized depreciation $ (661,098)
===========
</TABLE>
(c) GDR-Global Depository Receipts
<TABLE>
<CAPTION>
SECTOR ALLOCATIONS (as a
percentage of Total Common
Stock)
----------------------------
<S> <C>
Basic Industries 17.7%
Capital Goods 18.3%
Consumer Basics 2.8%
Consumer Durables 4.3%
Consumer Non-Durables 4.1%
Energy 8.5%
Finance 15.2%
General Business 3.8%
Shelter 12.1%
Technology 10.3%
Transportation 2.9%
</TABLE>
-------------------------------------------------------------------------------
12
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Growth and International Emerging Foreign
Small Cap Mid Cap Income Equity Markets Value
Assets:
<S> <C> <C> <C> <C> <C> <C>
Investments at value
(Note 2) $82,103,176 $20,272,897 $89,998,425 $17,028,614 $12,476,300 $13,234,917
Foreign currency at
value (Cost $27,738 for
International Equity and
$15,970 for Emerging
Markets) (Note 2) -- -- -- 28,005 15,992 --
Cash (3,019) 1,172 610,997 1,838 1,667 --
Collateral for securi-
ties loaned at value
(Note 6) -- -- -- 1,075,343 -- --
Dividends, interest and
foreign tax reclaims re-
ceivable 81,857 2,451 57,463 75,499 12,448 28,495
Receivable for invest-
ments sold 1,035,467 322,814 -- -- 15,490 2,217,340
Receivable for shares of
beneficial interest sold 150,000 50 22,500 -- -- --
Receivable from Manager
for reimbursement of ex-
penses (Note 3) -- -- -- -- -- --
Other assets 17,141 3,941 19,964 3,570 2,925 3,026
----------- ----------- ----------- ----------- ----------- -----------
Total assets 83,384,622 20,603,325 90,709,349 18,212,869 12,524,822 15,483,778
----------- ----------- ----------- ----------- ----------- -----------
<CAPTION>
Liabilities:
<S> <C> <C> <C> <C> <C> <C>
Collateral for securi-
ties loaned (Note 6) -- -- -- 1,075,343 -- --
Payable for investments
purchased 1,592,372 396,498 315,172 -- 15,508 1,533,084
Payable for shares of
beneficial interest re-
purchased -- -- 183,077 -- -- --
Payable for compensation
of Manager (Note 3) 66,587 15,945 58,641 14,364 8,672 12,145
Payable for distribution
fees (Note 3) 30,593 3,791 37,927 7,098 4,463 2,852
Payable to custodian 7,098 5,615 1,690 10,515 12,080 7,272
Payable to transfer
agent (Note 3) 14,568 2,655 17,732 4,605 2,768 1,794
Other accrued expenses 6,136 2,194 15,590 1,752 13,951 1,338
----------- ----------- ----------- ----------- ----------- -----------
Total liabilities 1,717,354 426,698 629,829 1,113,677 57,442 1,558,485
----------- ----------- ----------- ----------- ----------- -----------
<CAPTION>
Net assets $81,667,268 $20,176,627 $90,079,520 $ 17,099,192 $12,467,380 $13,925,293
<S> <C> <C> <C> <C> <C> <C>
=========== =========== =========== =========== =========== ===========
<CAPTION>
Net Assets consist of:
<S> <C> <C> <C> <C> <C> <C>
Shares of beneficial in-
terest $45,891,454 $11,098,758 $51,797,072 $15,394,663 $13,835,969 $14,937,002
Undistributed net in-
vestment income (loss) (386,760) (107,843) (476,225) (112,239) 17,275 110,877
Accumulated net realized
gain (loss) on invest-
ments and foreign denom-
inated assets, liabili-
ties and currency 12,399,587 4,372,206 16,147,103 880,155 (1,334,352) (459,160)
Unrealized appreciation
(depreciation) of in-
vestments and foreign
denominated assets, lia-
bilities and currency 23,762,987 4,813,506 22,611,570 936,613 (51,512) (663,426)
----------- ----------- ----------- ----------- ----------- -----------
$81,667,268 $20,176,627 $90,079,520 $17,099,192 $12,467,380 $13,925,293
----------- ----------- ----------- ----------- ----------- -----------
Investments, at cost $58,340,189 $15,459,391 $67,386,855 $16,089,002 $12,527,489 $13,896,015
----------- ----------- ----------- ----------- ----------- -----------
<CAPTION>
Net assets
<S> <C> <C> <C> <C> <C> <C>
Ordinary Shares $75,086,474 $19,228,955 $87,526,069 $16,942,593 $10,249,848 $13,317,359
Institutional Shares $ 6,580,794 $ 947,672 $ 2,553,451 $ 156,599 $ 2,217,532 $ 607,934
Shares of beneficial in-
terest outstanding (Un-
limited number of shares
authorized)
Ordinary Shares 2,961,973 814,148 3,675,792 1,568,586 1,360,961 1,538,447
Institutional Shares 247,925 39,241 105,588 14,460 290,938 70,110
Net asset value and of-
fering price per share*
Ordinary Shares $ 25.35 $ 23.62 $ 23.81 $ 10.80 $ 7.53 $ 8.66
Institutional Shares $ 26.54 $ 24.15 $ 24.18 $ 10.83 $ 7.62 $ 8.67
</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 redemptions 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.
--------------------------------------------------------------------------------
13
<PAGE>
STATEMENT OF OPERATIONS Six Months Ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Growth and International Emerging Foreign
Small Cap Mid Cap Income Equity Markets Value
Investment Income:
<S> <C> <C> <C> <C> <C> <C>
Dividends* $ 276,849 $ 32,079 $ 274,169 $ 204,099 $ 164,616 $ 230,876
Interest 52,682 18,250 -- 12,587 5,625 21,795
Miscellaneous -- -- -- -- -- 299
----------- ----------- ------------ ----------- ----------- ---------
<CAPTION>
Total investment income 329,531 50,329 274,169 216,686 170,241 252,970
<S> <C> <C> <C> <C> <C> <C>
----------- ----------- ------------ ----------- ----------- ---------
<CAPTION>
Expenses:
<S> <C> <C> <C> <C> <C> <C>
Compensation of Manager
(Note 3) 382,776 91,031 350,551 91,997 56,654 76,325
Distribution fees, Or-
dinary Shares (Note 3) 175,910 21,630 227,651 45,585 29,132 17,624
Custodian fees 23,440 20,003 21,350 35,438 44,185 23,215
Transfer agent fees
(Note 3):
Ordinary Shares 49,030 12,071 63,472 12,714 8,130 9,819
Institutional Shares 4,314 629 1,686 115 1,752 815
Audit and legal 22,042 5,307 27,033 5,337 4,142 4,383
Registration fees 7,464 1,781 9,122 1,764 1,367 1,480
Insurance 7,145 1,725 8,765 1,731 1,344 1,417
Compensation of Trust-
ees (Note 3) 4,639 1,115 5,687 1,119 869 922
Printing 7,242 1,759 8,894 1,768 1,374 1,434
Miscellaneous (Note 3) 32,289 8,315 36,867 8,437 6,651 7,167
----------- ----------- ------------ ----------- ----------- ---------
Total expenses before
waivers and/or reim-
bursements, and reduc-
tions 716,291 165,366 761,078 206,005 155,600 144,601
Waivers and/or reim-
bursements of expenses
(Note 3) -- (7,194) -- (5,144) -- (1,250)
Fees reduced by credits
allowed by Custodian
(Note 3) -- -- (10,684) -- -- (65)
----------- ----------- ------------ ----------- ----------- ---------
<CAPTION>
Expenses, net 716,291 158,172 750,394 200,861 155,600 143,286
<S> <C> <C> <C> <C> <C> <C>
----------- ----------- ------------ ----------- ----------- ---------
<CAPTION>
Net investment income
(loss) (386,760) (107,843) (476,225) 15,825 14,641 109,684
<S> <C> <C> <C> <C> <C> <C>
----------- ----------- ------------ ----------- ----------- ---------
<CAPTION>
Realized and Unrealized
Gain (Loss) on
Investments, Foreign
Currency and Foreign
Translation:
<S> <C> <C> <C> <C> <C> <C>
Net realized gain
(loss) (Note 2) on:
Investments ** 6,444,140 1,351,215 3,765,809 (298,273) 855,071 264,246
Foreign denominated as-
sets, liabilities and
currency -- -- -- (4,436) (5,413) (196,763)
Change in unrealized
appreciation (deprecia-
tion) of:
Investments (4,410,911) (2,202,059) (11,185,924) (1,634,156) (3,945,476) (831,752)
Foreign denominated as-
sets, liabilities and
currency -- -- -- (1,579) (327) (2,624)
----------- ----------- ------------ ----------- ----------- ---------
Net realized and
unrealized gain (loss) 2,033,229 (850,844) (7,420,115) (1,938,444) (3,096,145) (766,893)
----------- ----------- ------------ ----------- ----------- ---------
Net increase (decrease)
in net assets resulting
from operations $ 1,646,469 $ (958,687) $ (7,896,340) $(1,922,619) $(3,081,504) $(657,209)
=========== =========== ============ =========== =========== =========
</TABLE>
* Dividends are net of foreign withholding taxes of $1,045 for
Small Cap, $11,878 for Growth and Income, $30,135 for Inter-
national Equity, $14,279 for Emerging Markets and $31,832 for
Foreign Value.
** Net realized gain (loss) on Investments is net of foreign
withholding taxes of $13,795 for Emerging Markets.
The accompanying notes are an integral part of these financial statements.
--------------------------------------------------------------------------------
14
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
<TABLE>
<CAPTION>
Small Cap Mid Cap Growth and Income
Six months ended Year ended Six months ended Year ended Six months ended Year ended
September 30, 2000 March 31, 2000 September 30, 2000 March 31, 2000 September 30, 2000 March 31, 2000
Increase (Decrease)
in Net Assets:
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment in-
come (loss) $ (386,760) $ (775,352) $ (107,843) $ (155,156) $ (476,225) $ (853,010)
Net realized gain
(loss) on
investments, foreign
denominated assets,
liabilities,
currency and written
options 6,444,140 12,518,037 1,351,215 3,667,858 3,765,809 22,532,196
Unrealized
appreciation
(depreciation) of
investments and
foreign denominated
assets, liabilities
and currency (4,410,911) 22,479,764 (2,202,059) 5,137,854 (11,185,924) 13,226,035
----------- ----------- ----------- ----------- ------------ ------------
Net increase (de-
crease) in net as-
sets resulting from
operations 1,646,469 34,222,449 (958,687) 8,650,556 (7,896,340) 34,905,221
Distributions to
shareholders from:
Net investment in-
come
Ordinary Shares -- -- -- -- -- --
Institutional
Shares -- -- -- -- -- --
Distributions in ex-
cess of net invest-
ment income
Ordinary Shares -- -- -- -- -- --
Institutional
Shares -- -- -- -- -- --
Net realized gains
Ordinary Shares -- -- -- (1,051,870) -- (16,535,191)
Institutional
Shares -- -- -- (46,385) -- (657,052)
Distributions in ex-
cess of net realized
gains
Ordinary Shares -- -- -- -- -- --
Institutional
Shares -- -- -- -- -- --
Return of capital
Ordinary Shares -- -- -- -- -- --
Institutional
Shares -- -- -- -- -- --
----------- ----------- ----------- ----------- ------------ ------------
-- -- -- (1,098,255) -- (17,192,243)
----------- ----------- ----------- ----------- ------------ ------------
Fund share transac-
tions (Note 10) (768,896) (5,717,640) 228,284 181,135 (855,076) 5,636,664
----------- ----------- ----------- ----------- ------------ ------------
Increase (decrease)
in net assets 877,573 28,504,809 (730,403) 7,733,436 (8,751,416) 23,349,642
Net assets beginning
of year 80,789,695 52,284,886 20,907,030 13,173,594 98,830,936 75,481,294
----------- ----------- ----------- ----------- ------------ ------------
Net assets end of
year* $81,667,268 $80,789,695 $20,176,627 $20,907,030 $ 90,079,520 $ 98,830,936
=========== =========== =========== =========== ============ ============
*Includes undistrib-
uted net investment
income (loss) of $ (386,760) $ -- $ (107,843) $ -- $ (476,225) $ --
</TABLE>
The accompanying notes are an integral part of these financial statements.
--------------------------------------------------------------------------------
15
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)--Continued
<TABLE>
<CAPTION>
International Equity Emerging Markets Foreign Value
Six months ended Year ended Six months ended Year ended Six months ended Year ended
September 30, 2000 March 31, 2000 September 30, 2000 March 31, 2000 September 30, 2000 March 31, 2000
Increase (Decrease)
in Net Assets:
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment in-
come (loss) $ 15,825 $ (69,216) $ 14,641 $ 1,994 $ 109,684 $ 52,861
Net realized gain
(loss) on
investments,
foreign denominated
assets,
liabilities,
currency and
written options (302,709) 2,925,169 849,658 480,186 67,483 206,133
Unrealized
appreciation
(depreciation) of
investments and
foreign denominated
assets, liabilities
and currency (1,635,735) (232,894) (3,945,803) 3,923,901 (834,376) 720,112
----------- ----------- ----------- ----------- ----------- -----------
Net increase
(decrease) in net
assets resulting
from operations (1,922,619) 2,623,059 (3,081,504) 4,406,081 (657,209) 979,106
Distributions to
shareholders from:
Net investment in-
come
Ordinary Shares -- -- -- -- -- (440,249)
Institutional
Shares -- -- -- -- -- (2,829)
Distributions in
excess of net in-
vestment income
Ordinary Shares -- (524,319) -- (20,725) -- (34,588)
Institutional
Shares -- (47,894) -- (9,394) -- (222)
Net realized gains
Ordinary Shares -- (763,209) -- -- -- --
Institutional
Shares -- (58,039) -- -- -- --
Distributions in
excess of net real-
ized gains
Ordinary Shares -- -- -- -- -- --
Institutional
Shares -- -- -- -- -- --
Return of capital
Ordinary Shares -- -- -- -- -- --
Institutional
Shares -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
-- (1,393,461) -- (30,119) -- (477,888)
----------- ----------- ----------- ----------- ----------- -----------
Fund share transac-
tions (Note 10) (640,811) (5,418,070) (14,087) 1,297,698 (216,236) 6,418,141
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease)
in net assets (2,563,430) (4,188,472) (3,095,591) 5,673,660 (873,445) 6,919,359
Net assets beginning
of year 19,662,622 23,851,094 15,562,971 9,889,311 14,798,738 7,879,379
----------- ----------- ----------- ----------- ----------- -----------
Net assets end of
year* $17,099,192 $19,662,622 $12,467,380 $15,562,971 $13,925,293 $14,798,738
=========== =========== =========== =========== =========== ===========
* Includes undis-
tributed net in-
vestment income
(loss) of $ (114,242) $ (128,064) $ 17,275 $ 2,634 $ 116,391 $ 1,193
</TABLE>
The accompanying notes are an integral part of these financial statements.
--------------------------------------------------------------------------------
16
<PAGE>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Income from
Investment Operations(a) Distributions
Net Asset Net Net Realized Dividends Distributions
Value at Investment and Unrealized Total from from Net from Net Asset
Beginning Income Gain (Loss) Investment Investment Realized Total Value End Total
of Period (Loss)(b)(c) on Securities Operations Income Capital Gains Distributions of Period Return(d)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Small Cap
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $24.82 (0.12) 0.65 0.53 -- -- -- $25.35 2.14 %
Year Ended March
31, 2000 $14.60 (0.24) 10.46 10.22 -- -- -- $24.82 70.00 %
Year Ended March
31, 1999 $17.80 (0.15) (3.05) (3.20) -- -- -- $14.60 (17.98)%
Year Ended March
31, 1998 $15.04 (0.23) 5.60 5.37 (0.16) (2.45)(h) (2.61) $17.80 37.79 %
Year Ended March
31, 1997 $18.91 0.16 (g) 0.77 0.93 -- (4.80) (4.80) $15.04 1.72 %
Year Ended March
31, 1996 $15.81 (0.21) 5.54 5.33 -- (2.23) (2.23) $18.91 34.25 %
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $25.92 (0.07) 0.69 0.62 -- -- -- $26.54 2.39 %
Year Ended March
31, 2000 $15.17 (0.15) 10.90 10.75 -- -- -- $25.92 70.86 %
Year Ended March
31, 1999 $18.40 (0.08) (3.15) (3.23) -- -- -- $15.17 (17.55)%
Year Ended March
31, 1998 $15.55 (0.15) 5.79 5.64 (0.34) (2.45)(h) (2.79) $18.40 38.44 %
Year Ended March
31, 1997 $19.33 0.08 (g) 0.94 1.02 -- (4.80) (4.80) $15.55 2.21 %
Year Ended March
31, 1996 $16.05 (0.12) 5.63 5.51 -- (2.23) (2.23) $19.33 34.89 %
Mid Cap
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $24.68 (0.13) (0.93) (1.06) -- -- -- $23.62 (4.30)%
Year Ended March
31, 2000 $15.46 (0.19) 10.74 10.55 -- (1.33) (1.33) $24.68 71.41 %
Year Ended March
31, 1999 $16.05 (0.11) (0.09) (0.20) -- (0.39) (0.39) $15.46 (1.08)%
Year Ended March
31, 1998 $13.44 (0.08) 6.06 5.98 -- (3.37) (3.37) $16.05 46.76 %
Year Ended March
31, 1997 $13.20 0.09 2.29 2.38 (0.14) (2.00) (2.14) $13.44 17.47%
Year Ended March
31, 1996 $10.12 0.06 3.27 3.33 (0.01) (0.24) (0.25) $13.20 33.01 %
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $25.21 (0.12) (0.94) (1.06) -- -- -- $24.15 (4.20)%
Year Ended March
31, 2000 $15.65 (0.19) 11.08 10.89 -- (1.33) (1.33) $25.21 72.81 %
Year Ended March
31, 1999 $16.24 (0.10) (0.10) (0.20) -- (0.39) (0.39) $15.65 (1.07)%
Year Ended March
31, 1998 $13.55 (0.06) 6.12 6.06 -- (3.37) (3.37) $16.24 47.01 %
Year Ended March
31, 1997 $13.20 0.11 2.27 2.38 (0.03) (2.00) (2.03) $13.55 17.51 %
April 17, 1995*
to March 31,
1996 $10.27 0.10 3.09 3.19 (0.02) (0.24) (0.26) $13.20 31.12 %
Growth and In-
come
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $25.88 (0.13) (1.94) (2.07) -- -- -- $23.81 (8.00)%
Year Ended March
31, 2000 $21.26 (0.25) 10.21 9.96 -- (5.34) (5.34) $25.88 51.46 %
Year Ended March
31, 1999 $20.85 (0.08) 2.82 2.74 -- (2.33) (2.33) $21.26 13.67 %
Year Ended March
31, 1998 $15.22 0.00 7.61 7.61 (0.05) (1.93) (1.98) $20.85 51.52 %
Year Ended March
31, 1997 $14.57 0.08 2.53 2.61 (0.10) (1.86) (1.96) $15.22 17.97 %
Year Ended March
31, 1996 $13.72 0.12 2.89 3.01 (0.13) (2.03) (2.16) $14.57 22.17 %
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $26.22 (0.07) (1.97) (2.04) -- -- -- $24.18 (7.78)%
Year Ended March
31, 2000 $21.37 (0.14) 10.33 10.19 -- (5.34) (5.34) $26.22 52.32 %
Year Ended March
31, 1999 $20.84 0.03 2.83 2.86 -- (2.33) (2.33) $21.37 14.27 %
Year Ended March
31, 1998 $15.24 0.10 7.60 7.70 (0.17) (1.93) (2.10) $20.84 52.18 %
Year Ended March
31, 1997 $14.58 0.15 2.55 2.70 (0.18) (1.86) (2.04) $15.24 18.62 %
Year Ended March
31, 1996 $13.72 0.20 2.89 3.09 (0.20) (2.03) (2.23) $14.58 22.75 %
International
Equity
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $12.00 0.01 (1.21) (1.20) -- -- -- $10.80 (10.00)%
Year Ended March
31, 2000 $11.37 (0.04) 1.50 1.46 (0.34)(i) (0.49) (0.83) $12.00 12.93 %
Year Ended March
31, 1999 $11.97 0.01 (0.58) (0.57) (0.03)(i) -- (0.03) $11.37 (4.78)%
Year Ended March
31, 1998 $11.03 0.07 1.30 1.37 (0.17)(i) (0.26)(j) (0.43) $11.97 12.95 %
Year Ended March
31, 1997 $10.70 0.01 0.40 0.41 (0.08) -- (0.08) $11.03 3.82 %
Year Ended March
31, 1996 $10.06 0.00 0.67 0.67 (0.03) -- (0.03) $10.70 6.63 %
<CAPTION>
Ratios and Supplemental Data
Ratio of Expenses to Average
Net Assets(e)(f)
Net Assets Net Investment
End of Including Income (Loss)
Period Excluding Custody to Average Net Portfolio
(000's) Credits Gross Credits Assets(c)(e) Turnover(e)
<S> <C> <C> <C> <C> <C> <C>
Small Cap
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $75,086 1.92% 1.92% 1.92% (1.05)% 88.00%
Year Ended March
31, 2000 $74,289 1.97% 1.97% 1.96% (1.30)% 145.00%
Year Ended March
31, 1999 $47,605 1.94% 1.94% 1.94% (0.99)% 113.00%
Year Ended March
31, 1998 $66,876 1.90% 1.96% 1.89% (1.33)% 135.00%
Year Ended March
31, 1997 $57,135 1.97% 2.03% 1.90% 0.90 %(g) 393.00%
Year Ended March
31, 1996 $71,618 1.97% 1.97% 1.88% (1.17)% 324.00%
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $ 6,581 1.42% 1.42% 1.42% (0.55)% 88.00%
Year Ended March
31, 2000 $ 6,501 1.47% 1.47% 1.46% (0.80)% 145.00%
Year Ended March
31, 1999 $ 4,680 1.44% 1.44% 1.44% (0.49)% 113.00%
Year Ended March
31, 1998 $ 6,286 1.41% 1.47% 1.40% (0.86)% 135.00%
Year Ended March
31, 1997 $ 9,207 1.47% 1.52% 1.40% 0.41 %(g) 393.00%
Year Ended March
31, 1996 $42,803 1.47% 1.47% 1.38% (0.67)% 324.00%
Mid Cap
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $19,229 1.75% 1.83% 1.75% (1.20)% 81.00%
Year Ended March
31, 2000 $19,921 1.67% 1.92% 1.67% (1.03)% 153.00%
Year Ended March
31, 1999 $12,617 1.65% 1.87% 1.65% (0.72)% 168.00%
Year Ended March
31, 1998 $15,484 1.57% 1.97% 1.57% (0.52)% 128.00%
Year Ended March
31, 1997 $ 8,733 1.19% 2.19% 1.11% 0.62 % 162.00%
Year Ended March
31, 1996 $ 6,025 2.34% 2.62% 1.92% 0.46 % 181.00%
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $ 948 1.58% 1.58% 1.58% (1.03)% 81.00%
Year Ended March
31, 2000 $ 986 1.67% 1.67% 1.67% (1.04)% 153.00%
Year Ended March
31, 1999 $ 557 1.62% 1.62% 1.62% (0.69)% 168.00%
Year Ended March
31, 1998 $ 823 1.40% 1.72% 1.40% (0.35)% 128.00%
Year Ended March
31, 1997 $ 361 1.44% 2.01% 1.27% 0.77 % 162.00%
April 17, 1995*
to March 31,
1996 $ 4,621 2.02% 2.51% 1.66% 0.87 % 181.00%
Growth and In-
come
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $87,526 1.65% 1.65% 1.62% (1.03)% 48.00%
Year Ended March
31, 2000 $96,477 1.70% 1.70% 1.66% (1.08)% 78.00%
Year Ended March
31, 1999 $70,874 1.67% 1.67% 1.62% (0.36)% 97.00%
Year Ended March
31, 1998 $66,397 1.69% 1.69% 1.65% (0.01)% 72.00%
Year Ended March
31, 1997 $43,266 1.73% 1.73% 1.70% 0.50 % 98.00%
Year Ended March
31, 1996 $41,353 1.73% 1.73% 1.64% 0.81 % 152.00%
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $ 2,553 1.14% 1.14% 1.12% (0.55)% 48.00%
Year Ended March
31, 2000 $ 2,354 1.20% 1.20% 1.16% (0.60)% 78.00%
Year Ended March
31, 1999 $ 4,607 1.17% 1.17% 1.12% 0.14 % 97.00%
Year Ended March
31, 1998 $ 3,724 1.19% 1.19% 1.14% 0.50 % 72.00%
Year Ended March
31, 1997 $ 1,532 1.24% 1.24% 1.21% 0.99 % 98.00%
Year Ended March
31, 1996 $ 1,888 1.24% 1.24% 1.15% 1.31 % 152.00%
International
Equity
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $16,943 2.19% 2.25% 2.19% 0.17 % 37.00%
Year Ended March
31, 2000 $19,491 2.18% 2.30% 2.13% (0.35)% 78.00%
Year Ended March
31, 1999 $21,956 2.11% 2.11% 2.08% 0.12 % 128.00%
Year Ended March
31, 1998 $32,182 2.18% 2.18% 2.03% 0.62 % 61.00%
Year Ended March
31, 1997 $27,410 2.20% 2.23% 2.15% 0.10 % 135.00%
Year Ended March
31, 1996 $27,402 2.15% 2.15% 2.09% (0.04)% 43.00%
</TABLE>
The accompanying notes are an integral part of these financial statements.
--------------------------------------------------------------------------------
17
<PAGE>
FINANCIAL HIGHLIGHTS--Continued
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Income from
Investment Operations(a) Distributions
Net Asset Net Net Realized Dividends Distributions
Value at Investment and Unrealized Total from from Net from Net Asset
Beginning Income Gain (Loss) Investment Investment Realized Total Value End Total
of Period (Loss)(b)(c) on Securities Operations Income Capital Gains Distributions of Period Return(d)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
International
Equity--Contin-
ued
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $12.00 0.04 (1.21) (1.17) -- -- -- $10.83 (9.75)%
Year Ended March
31, 2000 $11.39 0.02 1.49 1.51 (0.41)(i) (0.49) (0.90) $12.00 13.33 %
Year Ended March
31, 1999 $11.95 0.06 (0.58) (0.52) (0.04)(i) -- (0.04) $11.39 (4.34)%
Year Ended March
31, 1998 $11.10 0.14 1.28 1.42 (0.31)(i) (0.26)(j) (0.57) $11.95 13.50 %
Year Ended March
31, 1997 $10.73 0.06 0.41 0.47 (0.10) -- (0.10) $11.10 4.38 %
Year Ended March
31, 1996 $10.10 0.04 0.66 0.70 (0.07) -- (0.07) $10.73 6.95 %
Emerging Markets
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $ 9.39 0.01 (1.87) (1.86) -- -- -- $ 7.53 (19.81)%
Year Ended March
31, 2000 $ 6.59 (0.01) 2.83 2.82 (0.02)(k) -- (0.02) $ 9.39 42.73 %
Year Ended March
31, 1999 $ 7.70 0.07 (1.11) (1.04) (0.07)(l) -- (0.07) $ 6.59 (13.40)%
Year Ended March
31, 1998 $ 9.24 (0.04) (1.50) (1.54) -- -- -- $ 7.70 (16.67)%
Year Ended March
31, 1997 $ 8.38 (0.04) 0.90 0.86 -- -- -- $ 9.24 10.26 %
Year Ended March
31, 1996 $ 7.24 (0.07) 1.21 1.14 -- -- -- $ 8.38 15.75 %
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $ 9.48 0.03 (1.89) (1.86) -- -- -- $ 7.62 (19.62)%
Year Ended March
31, 2000 $ 6.64 0.04 2.85 2.89 (0.05)(k) -- (0.05) $ 9.48 43.55 %
Year Ended March
31, 1999 $ 7.76 0.09 (1.11) (1.02) (0.10)(l) -- (0.10) $ 6.64 (12.93)%
Year Ended March
31, 1998 $ 9.27 0.02 (1.53) (1.51) -- -- -- $ 7.76 (16.29)%
April 2,1996* to
March 31, 1997 $ 8.49 0.01 0.80 0.81 (0.03) -- (0.03) $ 9.27 9.54 %
Foreign Value
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $ 9.05 0.06 (0.45) (0.39) -- -- -- $ 8.66 (4.31)%
Year Ended March
31, 2000 $ 8.36 0.04 0.97 1.01 (0.32)(m) -- (0.32) $ 9.05 12.17 %
May 15, 1998* to
March 31, 1999 $10.00 0.02 (1.64) (1.62) (0.02)(m) -- (0.02) $ 8.36 (16.16)%
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $ 9.06 0.09 (0.48) (0.39) -- -- -- $ 8.67 (4.30)%
Year Ended March
31, 2000 $ 8.37 0.12 0.91 1.03 (0.34)(m) -- (0.34) $ 9.06 12.37 %
December 18,
1998* to March
31, 1999 $ 8.43 0.06 (0.12) (0.06) -- -- -- $ 8.37 (0.71)%
<CAPTION>
Ratios and Supplemental Data
Ratio of Expenses to Average
Net Assets(e)(f)
Net Assets Net Investment
End of Including Income (Loss)
Period Excluding Custody to Average Net Portfolio
(000's) Credits Gross Credits Assets(c)(e) Turnover(e)
<S> <C> <C> <C> <C> <C> <C>
International
Equity--Contin-
ued
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $ 157 1.69% 1.75% 1.69% 0.66 % 37.00%
Year Ended March
31, 2000 $ 172 1.68% 1.80% 1.63% 0.14 % 78.00%
Year Ended March
31, 1999 $ 1,895 1.61% 1.61% 1.58% 0.62 % 128.00%
Year Ended March
31, 1998 $ 1,728 1.68% 1.69% 1.54% 1.19 % 61.00%
Year Ended March
31, 1997 $ 1,760 1.69% 1.75% 1.64% 0.51 % 135.00%
Year Ended March
31, 1996 $ 1,241 1.65% 1.65% 1.59% 0.38 % 43.00%
Emerging Markets
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $10,250 2.37% 2.37% 2.37% 0.12 % 55.00%
Year Ended March
31, 2000 $12,767 2.33% 2.33% 2.33% (0.07)% 31.00%
Year Ended March
31, 1999 $ 8,442 2.32% 2.58% 2.24% 1.03 % 49.00%
Year Ended March
31, 1998 $ 9,241 2.69% 2.69% 2.57% (0.43)% 52.00%
Year Ended March
31, 1997 $10,052 2.68% 2.68% 2.56% (0.47)% 8.00%
Year Ended March
31, 1996 $ 7,736 2.74% 2.74% 2.59% (0.84)% 9.00%
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $ 2,218 1.79% 1.79% 1.79% 0.63 % 55.00%
Year Ended March
31, 2000 $ 2,796 1.83% 1.83% 1.83% 0.52 % 31.00%
Year Ended March
31, 1999 $ 1,447 1.82% 2.08% 1.74% 1.36 % 49.00%
Year Ended March
31, 1998 $ 1,002 2.19% 2.19% 2.07% 0.24 % 52.00%
April 2,1996* to
March 31, 1997 $ 1,212 2.01% 2.17% 1.89% 0.13 % 8.00%
Foreign Value
Ordinary Shares
Six Months Ended
September 30,
2000 (Unaudited) $13,317 1.90% 1.92% 1.90% 1.41 % 43.00%
Year Ended March
31, 2000 $13,595 1.90% 2.06% 1.90% 0.40 % 30.00%
May 15, 1998* to
March 31, 1999 $ 7,478 1.99% 2.13% 1.90% 0.19 % 22.00%
Institutional
Shares
Six Months Ended
September 30,
2000 (Unaudited) $ 608 1.65% 1.69% 1.65% 1.81 % 43.00%
Year Ended March
31, 2000 $ 1,204 1.61% 1.77% 1.61% 1.67 % 30.00%
December 18,
1998* to March
31, 1999 $ 401 1.72% 1.86% 1.70% 0.75 % 22.00%
</TABLE>
* Commencement of Operations
(a) Per share numbers have been calculated using the average
shares method.
(b) Reflects expense waivers/reimbursements and reductions in
effect during the period. See Note 3 to the Financial State-
ments.
(c) Net investment income (loss) per share and the ratio of net
investment income (loss) to average net assets reflect net
investment income prior to certain reclassifications for
federal income or excise taxes.
(d) Total Return does not include the one time deferred sales
charge of 1% for the Ordinary Shares. Effective 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 custo-
dial fees had not been reduced by credits allowed by the
custodian. See Note 3 to the financial statements.
(e) Periods less than one year are annualized.
(f) Ratio of expenses to average net assets shows:
Excluding Credits (total expenses less fees waivers and reim-
bursements by the investment advisor, if any).
Gross (total expenses not taking into account fee waivers and
reimbursements by the investment advisor or custody earnings
credits, if any).
Including Credits (expenses less fee waivers and reimbursements
by the investment advisor and reduced by custody earnings cred-
its, if any).
(g) Net investment income per share and the net investment in-
come ratio would have been lower without a certain invest-
ment strategy followed by the subadvisor during the fiscal
year ended March 31, 1997.
(h) Distributions from realized capital gains include distribu-
tions in excess of realized capital gains of $ 0.03 per
share.
(i) Distributions from net investment income includes distribu-
tions in excess of current net income of $ 0.34, $ 0.01 and
$ 0.06 per share for Ordinary Shares, and $ 0.41, $ 0.01 and
$ 0.11 per share for Institutional Shares during the fiscal
years ended March 31, 2000, 1999 and 1998, respectively.
(j) Distributions from realized capital gains include distribu-
tions in excess of realized capital gains of $ 0.05 per
share.
(k) Distributions from net investment income includes distribu-
tions in excess of current net investment income of $ 0.02
per share for Ordinary Shares and $ 0.05 per share for In-
stitutional Shares.
(l) Distributions from net investment income includes a return
of capital of $ 0.02 per share for Ordinary Shares and $
0.03 per share for Institutional Shares.
(m) Distribution from net investment income includes distribu-
tions in excess of current net investment income of $ 0.02
and $ 0.01 for Ordinary Shares, and $ 0.02 and $ (-) for In-
stitutional Shares for the years ended March 31, 2000 and
1999, respectively.
The accompanying notes are an integral part of these financial statements.
--------------------------------------------------------------------------------
18
<PAGE>
[LOGO OF QUANT FUNDS]
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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. Effec-
tive November 30, 1999, the Trust began doing business as "Quant Funds." The
Trust currently has six series (individually a "Fund" and collectively the
"Funds") each with a distinct investment objective: Quant Small Cap, Quant Mid
Cap, Quant Growth and Income, Quant International Equity, Quant Emerging Mar-
kets, and Quant Foreign Value.
The Quant Small Cap Fund ("Small Cap") seeks maximum long-term capital appre-
ciation by investing primarily in common stocks of companies with smaller mar-
ket capitalizations or larger companies with higher than average expected
earnings growth rates.
The Quant Mid Cap Fund ("Mid Cap") seeks long-term growth of capital by in-
vesting primarily in common stock of companies with medium market capitaliza-
tions.
The Quant Growth and Income Fund ("Growth and Income") seeks long-term growth
of capital and income by investing primarily in common stocks of larger compa-
nies having substantial equity capital that are currently paying dividends.
The Quant International Equity Fund ("International Equity") seeks long-term
capital growth and income by investing primarily in foreign securities. Gener-
ally, the Fund invests in Western Europe, Australia, and the larger capital
markets in the Far East.
The Quant Emerging Markets Fund ("Emerging Markets") seeks long-term growth of
capital by investing in securities of foreign issuers located in emerging mar-
kets.
The Quant 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, Australia,
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 up to 4:00 p.m. on the principal exchange or market
on which they are traded. If there is no such reported sale, the securities
are valued at the last reported 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 assets and securities for which no quotations
are readily available are valued at fair value as determined in good faith us-
ing procedures approved by the Funds' Trustees (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 execut-
ed). Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities are recorded as soon as the Funds are in-
formed of the ex-dividend date. Interest income is recorded on the accrual ba-
sis. In determining the net gain or loss on securities sold, the cost of secu-
rities is determined on the identified cost basis. Each Fund's investment in-
come and realized and unrealized gains and losses are allocated among classes
based upon the daily relative net assets.
Repurchase Agreements. The Funds' custodian takes possession through the fed-
eral book-entry system of securities collateralizing repurchase agreements.
Collateral is marked-to-market daily to ensure that the market value of the
underlying assets remains sufficient to protect the Funds. The Funds may expe-
rience costs and delays in liquidating 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 ad-
justed 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 underlying asset during the period of the option, although any
potential loss during the period would be reduced by the amount of the option
premium received. Purchased options and the liability related to premiums re-
ceived on written options are valued based upon their quoted daily settlement
price.
Foreign Currency Transactions. All monetary items denominated in foreign cur-
rencies 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.
Reported net realized gains and losses on foreign currency transactions repre-
sent net gains and losses from currency gains
-------------------------------------------------------------------------------
19
<PAGE>
[LOGO OF QUANT FUNDS]
NOTES TO FINANCIAL STATEMENTS (Unaudited)--Continued
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 segre-
gated 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 transactions exempt from registration or to the public if the
securities are registered. One type of exempt transaction is a sale to certain
qualified institutional buyers under Rule 144A of the Securities Act of 1933.
Disposal of these securities may involve time-consuming negotiations and ex-
pense, and prompt sale at an acceptable price may be difficult. At the end of
the period, $758,132, or 6% of net assets of Emerging Markets and $180,975 or
1% of net assets of Foreign Value, was invested in restricted securities and
$0 for each of Small Cap, Mid Cap, Growth and Income and International Equity.
Expenses. The majority of the expenses of the Funds are attributed to the in-
dividual Funds for which they are incurred. Expenses that are not attributed
to a specific 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
transfer agency fee.
3. Management Fee, Advisory Contracts and Other Affiliate Transactions.
The Funds have entered into a management agreement with Quantitative Invest-
ment Advisors, Inc. (the "Manager"). Compensation of the Manager, for manage-
ment and administration of the Funds, including selection and monitoring of
the portfolio advisors, 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 the Growth and
Income Fund; and 0.80% of the average daily net asset value of Emerging Mar-
kets.
Under the management agreement, the Manager has agreed to reduce its compensa-
tion, 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 fis-
cal 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
Emerging Markets in order to reduce the total expenses of this Fund to no more
than 2.25% of its 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 six months ended September 30, 2000, the fees waived or expenses reim-
bursed by the Manager amounted to $5,144 for International Equity. The aggre-
gate management fees, net of fees waived or reimbursed by the Manager amounted
to $1,044,190.
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 gener-
ally 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 Advisors of the Funds are as follows: Small Cap and International Equi-
ty--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 $35 million, 0.40% of amounts over $35 million and up to
$200 million and 0.50% for assets in excess of $200 million of average daily
total net assets. Subsequent to the end of this semi-annual reporting period,
the Manager terminated its advisory contract with Independence International
Associates, Inc. for the International Equity Fund and entered into a new ad-
visory contract with State Street Bank and Trust Company for the Fund. Please
see Note 11: Subsequent Events for additional information.
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 was 0.50%. Holders of In-
stitutional Shares bear no portion of the
-------------------------------------------------------------------------------
20
<PAGE>
[LOGO OF QUANT FUNDS]
NOTES TO FINANCIAL STATEMENTS (Unaudited)--Continued
12b-1 Plan expenses of the Funds and are not entitled to vote on matters in-
volving the 12b-1 Plan. For the months of April and May, the Distributor vol-
untarily agreed to waive its fees with respect to Mid Cap, which amounted to
$7,194. During the six months ended September 30, 2000, the aggregate fees
paid by the Funds pursuant to such distribution plan, net of fees waived by
the Distributor, amounted to $510,338.
A deferred sales charge amounting to 1% of the net asset value of Ordinary
Shares redeemed of Small Cap, Growth and Income, International Equity, Emerg-
ing Markets and Foreign Value is withheld from the redemption proceeds and
paid to the Distributor. The deferred sales charge is also imposed on redemp-
tions of Ordinary Shares of Mid Cap purchased prior to August 1, 1996. The de-
ferred sales charge is not imposed on redemptions of Institutional Shares and
certain other transactions. The Funds have been advised that during the six
months ended September 30, 2000, such fees earned by the Distributor were
$69,288.
Transfer agent functions are provided to the Funds by Quantitative Institu-
tional 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 six months ended
September 30, 2000, the aggregate fees paid by the Funds pursuant to such
agreement amounted to $164,547.
Quantitative Institutional Services also provides the Fund with other services
consisting of in-house legal services, preparation and review of semi-annual
and annual reports, development of internet based shareholder services systems
and Edgar Administration services. These services are provided as additional
services agreed to by the Trustees under the provisions of the Transfer Agent
and Services Agreement. During the six months ended September 30, 2000, the
aggregate fees paid by the Funds pursuant to such agreement amounted to
$88,852.
Custody and fund accounting services are provided by State Street Kansas City.
Custody credits generated by interest earned on uninvested cash balances main-
tained by the Funds are used to offset custodial expenses of the Funds. For
the six month ended September 30, 2000, State Street voluntarily agreed to
waive its minimum fees in part with respect to Foreign Value, which amounted
to $1,250.
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 Fed-
eral income tax provision is required.
At March 31, 2000 Emerging Markets had a capital loss carry-over amounting to
$2,026,159 which will expire on March 31, 2007. Foreign Value had a capital
loss carry-over amounting to $359,523 of which $281,817 will expire on March
31, 2007 and $77,706 will expire on March 31, 2008. Emerging Markets and For-
eign Value also had a post October loss deferrals amounting to $157,851 and
$159,750, respectively. To the extent that these losses are used to offset any
future capital gains realized during the carryover period, no capital gains
tax liabilities will be incurred by the Funds for gains realized and not dis-
tributed.
5. Purchases and Sales.
During the six months ended September 30, 2000, purchases of investment secu-
rities 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 $33,020,744, $7,685,750, $22,294,722, $3,342,227,
$3,732,369 and $3,488,075, respectively. Sales of such securities for the
Funds were $34,182,263, $7,134,973, $23,016,879, $3,912,838, $4,029,891, and
$2,697,804, respectively.
6. Securities Loans.
As of September 30, 2000, International Equity loaned common stocks having a
value of $1,022,127 and received cash collateral of $1,075,343 for these
loans.
Security lending income of $7,988 collected by State Street was recorded in
interest income on the Statement of Operations.
7. Line of Credit and Contingent Liability.
Small Cap, Mid Cap, International Equity, Emerging Markets and Foreign Value
share in a $2,000,000 unsecured committed revolving line of credit with State
Street Bank and Trust Company for temporary or emergency purposes. Pursuant to
the line of credit agreement, the Funds may borrow up to 10%, 10%, 10%, 5% and
10%, respectively, of each Funds' net asset value up to certain limits set
forth in the allocation procedures approved by the Trustees. Such borrowings
are due not more than 60 days from the date of borrowing, with interest, as
determined by the line of credit agreement. At September 30, 2000 there were
no outstanding balances under the line of credit.
-------------------------------------------------------------------------------
21
<PAGE>
[LOGO OF QUANT FUNDS]
NOTES TO FINANCIAL STATEMENTS (Unaudited)--Continued
The Trust insures itself and all Funds under a policy with ICI Mutual Insur-
ance 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 irrev-
ocable letter of credit.
8. Shares of Beneficial Interest.
The following schedule shows the number of shareholders each owning 5% or more
of a class of shares of a Fund and the total percentage of the class held by
such shareholders.
<TABLE>
<CAPTION>
5% or Greater Shareholders
--------------------------
<S> <C> <C>
Fund Number % of class Held
Small Cap Inst. 7 71%
Mid Cap Ord. 1 8%
Mid Cap Inst. 6 81%
Growth and Income Inst. 4 67%
International Equity Inst. 3 95%
Emerging Markets Inst. 5 73%
Foreign Value Ord. 1 5%
Foreign Value Inst. 3 98%
</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.
-------------------------------------------------------------------------------
22
<PAGE>
[LOGO OF QUANT FUNDS]
NOTES TO FINANCIAL STATEMENTS (Unaudited)--Continued
10. Transactions in Shares of Beneficial Interest.
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
September 30, 2000 March 31, 2000
--------------------- ---------------------
Shares Dollars Shares Dollars
<S> <C> <C> <C> <C>
Small Cap
Ordinary Shares:
Shares sold 54,853 $ 1,316,224 198,309 $ 3,707,730
Shares issued in reinvestment of
distributions -- -- -- --
Shares redeemed (86,521) (2,011,413) (464,611) (8,596,371)
-------- ----------- -------- -----------
Net change (31,668) (695,189) (266,302) (4,888,641)
======== ----------- ======== -----------
Institutional Shares:
Shares sold 1,793 44,249 51,217 1,056,317
Shares issued in reinvestment of
distributions -- -- -- --
Shares redeemed (4,676) (117,956) (108,815) (1,885,316)
-------- ----------- -------- -----------
Net change (2,883) (73,707) (57,598) (828,999)
======== ----------- ======== -----------
Total net change for fund $ (768,896) $(5,717,640)
=========== ===========
Mid Cap
Ordinary Shares:
Shares sold 76,264 $ 1,756,482 118,230 $ 2,511,461
Shares issued in reinvestment of
distributions -- -- 56,085 1,013,460
Shares redeemed (69,409) (1,531,230) (183,316) (3,427,844)
-------- ----------- -------- -----------
Net change 6,855 225,252 (9,001) 97,077
======== ----------- ======== -----------
Institutional Shares:
Shares sold 840 19,066 16,584 363,736
Shares issued in reinvestment of
distributions -- -- 2,533 46,385
Shares redeemed (707) (16,034) (15,600) (326,063)
-------- ----------- -------- -----------
Net change 133 3,032 3,517 84,058
======== ----------- ======== -----------
Total net change for fund $ 228,284 $ 181,135
=========== ===========
Growth and Income
Ordinary Shares:
Shares sold 130,183 $ 3,209,794 167,523 $ 3,868,631
Shares issued in reinvestment of
distributions -- -- 640,292 14,009,592
Shares redeemed (181,843) (4,426,932) (414,615) (9,357,746)
-------- ----------- -------- -----------
Net change (51,660) (1,217,138) 393,200 8,520,477
======== ----------- ======== -----------
Institutional Shares:
Shares sold 73,733 1,849,065 22,748 542,541
Shares issued in reinvestment of
distributions -- -- 29,337 649,232
Shares redeemed (57,927) (1,487,003) (177,920) (4,075,586)
-------- ----------- -------- -----------
Net change 15,806 362,062 (125,835) (2,883,813)
======== ----------- ======== -----------
Total net change for fund $ (855,076) $ 5,636,664
=========== ===========
</TABLE>
-------------------------------------------------------------------------------
23
<PAGE>
[LOGO OF QUANT FUNDS]
NOTES TO FINANCIAL STATEMENTS (Unaudited)--Continued
<TABLE>
<CAPTION>
Six Months Ended Year Ended
September 30, 2000 March 31, 2000
--------------------- ---------------------
Shares Dollars Shares Dollars
<S> <C> <C> <C> <C>
International Equity
Ordinary Shares:
Shares sold 54,198 $ 608,730 82,908 $ 971,911
Shares issued in reinvestment of
distributions -- -- 98,828 1,172,103
Shares redeemed (109,839) (1,251,149) (488,421) (5,787,344)
-------- ----------- -------- -----------
Net change (55,641) (642,419) (306,685) (3,643,330)
======== ----------- ======== -----------
Institutional Shares:
Shares sold 136 1,608 69,058 808,819
Shares issued in reinvestment of
distributions -- -- 8,932 105,933
Shares redeemed -- -- (230,052) (2,689,492)
-------- ----------- -------- -----------
Net change 136 1,608 (152,062) (1,774,740)
======== ----------- ======== -----------
Total net change for fund $ (640,811) $(5,418,070)
=========== ===========
Emerging Markets
Ordinary Shares:
Shares sold 42,397 $ 358,230 214,337 $ 1,805,946
Shares issued in reinvestment of
distributions -- -- 2,277 19,809
Shares redeemed (41,480) (335,987) (138,122) (1,303,824)
-------- ----------- -------- -----------
Net change 917 22,243 78,492 521,931
======== ----------- ======== -----------
Institutional Shares:
Shares sold 178 1,549 111,346 1,074,829
Shares issued in reinvestment of
distributions -- -- 169 1,478
Shares redeemed (4,280) (37,879) (34,440) (300,540)
-------- ----------- -------- -----------
Net change (4,102) (36,330) 77,075 775,767
======== ----------- ======== -----------
Total net change for fund $ (14,087) $ 1,297,698
=========== ===========
Foreign Value
Ordinary Shares:
Shares sold 105,466 $ 953,954 711,647 $ 6,619,414
Shares issued in reinvestment of
distributions -- -- 53,026 473,523
Shares redeemed (68,833) (607,496) (157,119) (1,438,775)
-------- ----------- -------- -----------
Net change 36,633 346,458 607,554 5,654,162
======== ----------- ======== -----------
Institutional Shares:
Shares sold 660 5,980 124,779 1,138,343
Shares issued in reinvestment of
distributions -- -- 342 3,051
Shares redeemed (63,468) (568,674) (40,152) (377,415)
-------- ----------- -------- -----------
Net change (62,808) (562,694) 84,969 763,979
======== ----------- ======== -----------
Total net change for fund $ (216,236) $ 6,418,141
=========== ===========
</TABLE>
11. Subsequent Events.
On October 1, 2000, the Manager entered into an advisory contract with State
Street Global Advisors, a division of State Street Bank and Trust Company to
provide investment advisory services to the International Equity Fund. For
services rendered, the Manager will pay to the Advisor a fee, computed and paid
monthly at the annual rate of 0.50% of the first $30 million, 0.40% of amounts
in excess of $30 million but less than $100 million and 0.35% of amounts in ex-
cess of $100 million of average daily total net assets, with an annual minimum
of $75,000. This contract replaces the previous contract with Independence In-
ternational Associates and was approved by the Board of Trustees.
--------------------------------------------------------------------------------
24
<PAGE>
QUANT FUNDS
55 Old Bedford Road
Lincoln, MA 01773
1-800-331-1244
www.QuantFunds.com
Manager
Quantitative Investment Advisors, Inc.
55 Old Bedford Road
Lincoln, MA 01773
Advisors
<TABLE>
<CAPTION>
<S> <C>
Independence International Associates, Inc. Columbia Partners, LLC, Investment Management
53 State Street 1775 Pennsylvania Avenue, N.W.
Boston, MA 02109 Washington, D.C. 02110
Polaris Capital Management, Inc. State Street Bank and Trust Company
125 Summer Street 2 International Place
Boston, MA 02110 Boston, MA 01773
</TABLE>
Distributor
U.S. Boston Capital Corporation
55 Old Bedford Road
Lincoln, MA 01773
[LOGO OF QUANT FUNDS] Custodian
QUANT FUNDS
55 Old Bedford Road State Street Kansas City
Lincoln, MA 01773 801 Pennsylvania Avenue
voice 800-331-1244 Kansas City, MO 64105
fax 781-259-1166
www.QuantFunds.com
Transfer Agent
Quantitative Institutional Services
55 Old Bedford Road
Lincoln, MA 01773
Independent Accountants
PricewaterhouseCoopers LLP
1055 Broadway, 10th Floor
Kansas City, MO 64105
Distributed by U.S. Boston Capital Corp.
