<PAGE> 1
MERIDIAN FUND
July 11, 2000
To Our Shareholders:
The Meridian Fund's net asset value per share at June 30, 2000 was $29.45. This
represents a total return of 21.45% for the fiscal year ended June 30, 2000 and
15.94% for the calendar year to date. The Fund's total return and average
compound rate of return since inception, August 1, 1984, were 815.51% and
14.93%, respectively. The Fund's ten-year total return and ten-year average
compound rate of return were 303.60% and 14.97%, respectively. The Fund's net
assets at the close of the quarter were invested 8.6% in cash and other assets
less liabilities and 91.4% in stocks. Total net assets were $140,990,193 and
there were 5,206 shareholders.
The Federal Reserve Board pursued a more restrictive monetary policy during the
second calendar quarter and this made it difficult for equity investors. The S&P
500 declined 2.9 percent, the volatile and technology-laden NASDAQ 13.3 percent
and the Russell 2000 4.1 percent. Year to date, the S&P 500 is down 1.0 percent,
the NASDAQ has declined 2.5 percent, while the Russell 2000, a "small-cap"
index, is 2.5 percent higher. Drug, healthcare, energy and food stocks were
among the best performing groups while technology stocks were hardest hit.
Internet stocks took a severe pounding as investors finally began to demand
tangible results. The Dow Jones Bond Index showed little movement. The yield on
the 30-year government bond declined from 5.94 percent to 5.88 percent during
the period.
The economy continues to grow at a rapid rate, but there are signs that activity
is beginning to slow. Both housing starts and consumer spending have moderated
somewhat. Consumer confidence is down from its high, stock prices have leveled
off and the unemployment rate has even moved up slightly to 4.1 percent. The
rate of increase in industrial production has slowed also. We concur with the
Federal Reserve's current policy. Rather than rapid growth for a few quarters,
it is best for the economy to grow at a sustainable and non-inflationary rate
over a long period of time. Our outlook is for moderating growth throughout the
balance of the year with the rate of inflation and interest rates remaining near
current levels. The growth in corporate profits, in our opinion, will slow
during the second half of the year.
Our market approach remains the same. We enter the second half of the year with
approximately 90 percent of our investments in equities and 10 percent cash. Our
portfolio, we believe, consists of sound companies with good prospects and
reasonable valuations. Approximately 13 percent of our portfolio is health
services, 11 percent restaurants, 17 percent retail and 22 percent technology.
The average price earnings ratio of the fund is approximately twenty times
estimated earnings, a discount to the S&P 500. We estimate the average growth
rate for our companies will be twice that of
<PAGE> 2
the S&P 500 during the next few years. This puts us in a strong relative
position entering the second half of the year. We continue to research and
monitor many additional interesting small and medium-sized growth companies that
we believe are presently overvalued, but could become part of our portfolio at
some future date.
During the quarter we sold Town & Country Trust and Wackenhut Corrections
Corporation.
Atlantic Coast Airlines, one of our holdings, is the fastest growing regional
airline in the country with anticipated capacity increases of 34 percent in
2000, 41 percent in 2001 and 32 percent in 2002. The company primarily serves
Washington-Dulles Airport, the fastest growing major airport in the country,
with 1999 passenger volume up 26 percent. Atlantic Coast has expanded its
alliance with United Airlines (United Express) during the past several years and
has recently entered into a major ten-year code-sharing agreement with Delta
(Delta Connection) which will begin in July of 2000. The company's earnings have
been under some pressure recently due to increased fuel costs and costs
associated with the Delta start-up, but are poised to accelerate during the next
several quarters. Atlantic Coast is well managed, has strong financial
characteristics and sells at approximately 13 times estimated earnings.
We welcome those new shareholders who joined the Meridian Fund during the
quarter and appreciate the continued confidence of our existing shareholders.
Sincerely,
/s/ Richard F. Aster, Jr.
Richard F. Aster, Jr.
2
<PAGE> 3
MERIDIAN FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
COMMON STOCK - 91.4%
BANKING & FINANCE - 2.1%
Pacific Century Financial Corp.*..................... 201,000 $2,939,625
CELLULAR COMMUNICATIONS - 2.9%
American Tower Corp.................................. 96,100 4,006,169
CONSUMER SERVICES - 1.9%
Regis Corporation*................................... 207,300 2,591,250
ENERGY - 6.6%
Precision Drilling Corp.............................. 128,000 4,944,000
Varco International.................................. 189,525 4,406,445
HEALTH SERVICES - 12.6%
Health Management Associates......................... 333,200 4,352,425
Lincare Holdings, Inc................................ 129,000 3,176,625
Province Healthcare Company.......................... 144,000 5,202,000
Renal Care Group, Inc................................ 207,900 5,083,805
INDUSTRIAL SERVICES - 8.4%
Expeditors International of Washington, Inc.*........ 93,500 4,441,250
Paychex, Inc.*....................................... 175,250 7,360,500
INDUSTRIAL PRODUCTS - 3.3%
Tektronix, Inc.*..................................... 63,150 4,673,100
RESTAURANTS - 10.9%
CEC Entertainment, Inc............................... 135,000 3,459,375
Jack in the Box...................................... 167,000 4,112,375
P.F. Chang's China Bistro............................ 125,500 4,008,156
Sonic Corporation.................................... 130,800 3,842,250
</TABLE>
The accompanying notes are an integral part of the financial statements
3
<PAGE> 4
MERIDIAN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------- ------------
COMMON STOCK (continued)
<S> <C> <C>
RETAIL - 16.8%
Bed, Bath and Beyond, Inc............................ 140,400 $5,089,500
Cost Plus, Inc....................................... 151,200 4,337,550
Kohl's Corporation................................... 138,000 7,676,250
West Marine, Inc..................................... 332,100 2,272,809
Zale Corporation..................................... 116,300 4,244,950
TECHNOLOGY - 11.2%
Integrated Device Technology, Inc.................... 84,000 5,029,500
KEMET Corporation.................................... 134,200 3,363,387
Molex Inc. - Class A*................................ 116,250 4,068,750
Synopsys, Inc........................................ 96,300 3,328,369
TELECOMMUNICATIONS/CABLE EQUIPMENT - 11.0%
ANTEC Corporation.................................... 108,000 4,488,750
Adtran, Inc.......................................... 76,000 4,550,500
Plantronics, Inc..................................... 56,400 6,514,200
TRANSPORTATION - 3.7%
Atlantic Coast Airlines Holdings, Inc................ 166,000 5,270,500
TOTAL COMMON STOCK
(Identified cost $81,328,075).................................... 128,834,365
CASH AND OTHER ASSETS LESS LIABILITIES - 8.6%...................... 12,155,828
------------
NET ASSETS - 100%.................................................. $140,990,193
============
</TABLE>
*income producing
The accompanying notes are an integral part of the financial statements
4
<PAGE> 5
MERIDIAN FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments (Cost $81,328,075)............................ $128,834,365
Cash and cash equivalents................................. 12,205,275
Receivables for:
Dividends.............................................. 2,905
Interest............................................... 51,933
Capital shares......................................... 2,840
Securities sold........................................ 71,377
Prepaid expenses.......................................... 2,548
------------
TOTAL ASSETS........................................... $141,171,243
------------
LIABILITIES
Payable for:
Capital shares......................................... 16,896
Accrued expenses.......................................... 164,154
------------
TOTAL LIABILITIES...................................... 181,050
------------
NET ASSETS.................................................. $140,990,193
============
Capital shares issued and outstanding, par value $.01
(25,000,000 shares authorized)............................ 4,787,284
============
Net asset value per share (offering and redemption price)... $29.45
============
Net assets consist of:
Paid-in-capital........................................... $ 79,378,180
Accumulated net realized gain............................. 14,105,723
Accumulated net unrealized appreciation on investments.... 47,506,290
------------
$140,990,193
============
</TABLE>
The accompanying notes are an integral part of the financial statements
5
<PAGE> 6
MERIDIAN FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends............................................ $772,615
Interest............................................. 514,137
Other income......................................... 810,019
-----------
Total investment income......................... $2,096,771
-----------
EXPENSES
Investment advisory fees............................. 1,244,938
Transfer agent fees.................................. 161,070
Reports to shareholders.............................. 51,950
Pricing fees......................................... 47,140
Professional fees.................................... 39,040
Custodian fees....................................... 31,145
Registration and filing fees......................... 27,182
Miscellaneous expenses............................... 26,998
Directors' fees and expenses......................... 4,392
-----------
Total expenses.................................. 1,633,855
-----------
Net investment income........................... 462,916
-----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gain on investments..................... 13,587,360
Net unrealized appreciation on investments........... 10,998,931
-----------
Net gain on investments.............................. 24,586,291
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $25,049,207
===========
</TABLE>
The accompanying notes are an integral part of the financial statements
6
<PAGE> 7
MERIDIAN FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, 2000 June 30, 1999
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income.................................. $462,916 $1,068,820
Net realized gain on investments....................... 13,587,360 11,913,210
Net unrealized appreciation (depreciation) on
investments.......................................... 10,998,931 (17,968,517)
------------ ------------
Net increase (decrease) from operations.............. 25,049,207 (4,986,487)
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income............... (1,007,191) (1,187,972)
Distributions from net realized capital gain........... (11,919,392) (54,557,125)
------------ ------------
Total distributions.................................. (12,926,583) (55,745,097)
------------ ------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sales of shares.......................... 25,058,458 11,727,850
Reinvestment of distributions.......................... 12,403,277 53,097,094
Less: redemptions...................................... (94,277,671) (115,212,451)
------------ ------------
Decrease resulting from capital share transactions... (56,815,936) (50,387,507)
------------ ------------
Total decrease in net assets........................... (44,693,312) (111,119,091)
NET ASSETS
Beginning of year...................................... 185,683,505 296,802,596
------------ ------------
End of year (includes undistributed net investment
income of $0 and $1,069,138, respectively)........... $140,990,193 $185,683,505
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements
7
<PAGE> 8
MERIDIAN FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the year June 30,
--------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995 1994
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value -- Beginning of
period.......................... $26.28 $33.26 $33.20 $32.21 $27.29 $24.27 $23.87
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations
---------------------------------
Net Investment Income (loss)..... .11 .16 .27 .40 .30 .27 .09
Net Gains (Losses) on Securities
(both realized and
unrealized)..................... 4.99 (.50) 4.92 3.71 5.47 3.63 .76
-------- -------- -------- -------- -------- -------- --------
Total From Investment
Operations...................... 5.10 (.34) 5.19 4.11 5.77 3.90 .85
-------- -------- -------- -------- -------- -------- --------
Less Distributions
------------------
Distributions from net investment
income.......................... (0.15) (0.14) (0.32) (0.36) (.31) (.18) (.02)
Distributions from net realized
capital gains................... (1.78) (6.50) (4.81) (2.76) (.54) (.70) (.43)
-------- -------- -------- -------- -------- -------- --------
Total Distributions.............. (1.93) (6.64) (5.13) (3.12) (.85) (.88) (.45)
-------- -------- -------- -------- -------- -------- --------
Net Asset Value -- End of
Period.......................... $29.45 $26.28 $33.26 $33.20 $32.21 $27.29 $24.27
======== ======== ======== ======== ======== ======== ========
Total Return..................... 21.45% 3.05% 16.92% 13.92% 21.40% 16.44% 3.48%
======== ======== ======== ======== ======== ======== ========
Ratios/Supplemental Data
------------------------
Net Assets, End of Period (in
thousands)...................... $140,990 $185,683 $296,803 $353,029 $384,087 $328,153 $199,191
Ratio of Expenses to Average Net
Assets.......................... 1.09% 1.01% 0.95% 0.96% 0.96% 1.06% 1.22%
Ratio of Net Investment Income
(Loss) to Average Net Assets.... 0.31% 0.49% 0.76% 1.23% 0.99% 1.18% .38%
Portfolio Turnover Rate.......... 28% 51% 38% 37% 34% 29% 43%
<CAPTION>
For the year June 30,
---------------------------
1993 1992 1991
------- ------- -------
<S> <C> <C> <C>
Net Asset Value -- Beginning of
period.......................... $18.97 $17.24 $17.71
------- ------- -------
Income from Investment Operations
---------------------------------
Net Investment Income (loss)..... (.01) .07 .20
Net Gains (Losses) on Securities
(both realized and
unrealized)..................... 5.51 3.45 .49
------- ------- -------
Total From Investment
Operations...................... 5.50 3.52 .69
------- ------- -------
Less Distributions
------------------
Distributions from net investment
income.......................... (.04) (.09) (.12)
Distributions from net realized
capital gains................... (.56) (1.70) (1.04)
------- ------- -------
Total Distributions.............. (.60) (1.79) (1.16)
------- ------- -------
Net Asset Value -- End of
Period.......................... $23.87 $18.97 $17.24
======= ======= =======
Total Return..................... 29.50% 21.00% 5.62%
======= ======= =======
Ratios/Supplemental Data
------------------------
Net Assets, End of Period (in
thousands)...................... $78,581 $18,363 $12,350
Ratio of Expenses to Average Net
Assets.......................... 1.47% 1.75% 1.68%
Ratio of Net Investment Income
(Loss) to Average Net Assets.... (.01%) .24% .98%
Portfolio Turnover Rate.......... 61% 61% 85%
</TABLE>
The accompanying notes are an integral part of the financial statements
8
<PAGE> 9
MERIDIAN FUND
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES: Meridian Fund (the "Fund")
a series of Meridian Fund, Inc. (the "Company"), began operations on August
1, 1984. The Fund was registered on August 1, 1984, under the Investment
Company Act of 1940, as amended, as a no-load, diversified, open-end
management investment company. The primary investment objective of the Fund
is to seek long-term growth of capital. In addition to the Meridian Fund,
the Company also offers the Meridian Value Fund. The following is a summary
of significant accounting policies:
a. INVESTMENT VALUATIONS: Marketable securities are valued at the last
sales price on the principal exchange or market on which they are
traded; or, if there were no sales that day, at the last reported bid
price. Short-term investments that will mature in 60 days or less are
stated at amortized cost, which approximates value.
b. FEDERAL INCOME TAXES: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders; therefore, no federal income tax provision is required.
The aggregate cost of investments for federal income tax purposes is
$81,328,075, the aggregate gross unrealized appreciation is $54,712,158,
and the aggregate gross unrealized depreciation is ($7,205,868),
resulting in net unrealized appreciation of $47,506,290.
c. SECURITY TRANSACTIONS: Security transactions are accounted for on the
date the securities are purchased or sold (trade date). Realized gains
and losses on security transactions are determined on the basis of
specific identification for both financial statement and federal income
tax purposes. Dividend income is recorded on the ex-dividend date.
Interest income and accretion income are accrued daily.
d. CASH AND CASH EQUIVALENTS: All highly liquid investments with an
original maturity of three months or less are considered to be cash
equivalents. Available funds are automatically swept into a Cash Reserve
account which preserves capital with a consistently competitive rate of
return. Earnings are indexed to the Federal Reserve "Fed Funds Rate."
Interest accrues daily and is credited by the third business day of the
following month.
e. EXPENSES: Expenses arising in connection with the Fund are charged
directly to the Fund. Expenses common to both series of Meridian Fund,
Inc. are allocated to each series in proportion to their relative net
assets.
f. USE OF ESTIMATES: The preparation of financial statements in accordance
with accounting principals generally accepted in the United States
requires management to make estimates and assumptions that affect the
reported amount of assets and liabilities at the date of the financial
statements. Actual amounts could differ from those estimates.
g. DISTRIBUTIONS TO SHAREHOLDERS: The Fund records distributions to its
shareholders on the ex-date. The amount of distributions from net
investment income and net realized capital gains are determined in
accordance with federal income tax regulations which may differ from
generally accepted accounting principles. These "book-tax" differences
are either considered temporary or permanent in nature. To the extent
these differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification.
9
<PAGE> 10
MERIDIAN FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distributions which exceed net investment income and net realized
capital gains are reported as dividends in excess of net investment
income or distributions in excess of net realized capital gains for
financial reporting purposes but not for tax purposes. To the extent
they exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
Prior to June 30, 2000, undistributed net investment income was
$524,863, accumulated net realized gain was $13,588,430 and additional
paid-in-capital was $79,370,610. The Fund reclassified $517,293 from
undistributed net investment income to accumulated net realized gain and
$7,570 from undistributed net investment income to paid-in-capital for
the fiscal year ended June 30, 2000, as a result of permanent
differences between book and tax. These reclassifications have no effect
on net assets or net asset values per share.
Permanent book-tax differences, if any, are not included in ending
undistributed net investment income (loss) for the purposes of
calculating net investment income (loss) per share in the Financial
Highlights.
2. LEGAL SETTLEMENT: On May 19, 2000, the Fund received $802,571 as settlement
of class action litigation against Riscorp Securities. This amount is
classified as other investment income for the fiscal year ended June 30,
2000.
3. RELATED PARTIES: The Fund has entered into a management agreement with Aster
Capital Management, Inc. (the "Investment Adviser"). Certain Officers and/or
Directors of the Fund are also Officers and/or Directors of the Investment
Adviser.
The Investment Adviser receives from the Fund as compensation for its
services an annual fee of 1% of the first $50,000,000 of the Fund's net
assets and 0.75% of the Fund's net assets in excess of $50,000,000. The fee
is paid monthly and calculated based on that month's average net assets.
10
<PAGE> 11
MERIDIAN FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
4. CAPITAL SHARE TRANSACTIONS: The Fund has authorized 25,000,000 common shares
at a par value of $.01 per share. Transactions in capital shares for the
year ended June 30, 2000, and June 30, 1999, were as follows:
<TABLE>
<CAPTION>
2000 1999
---------- ----------
<S> <C> <C>
Shares sold 929,875 466,943
Shares issued on reinvestment of distributions 537,870 2,431,185
---------- ----------
1,467,745 2,898,128
Shares redeemed (3,745,935) (4,756,060)
---------- ----------
Net decrease (2,278,190) (1,857,932)
========== ==========
</TABLE>
5. COMPENSATION OF DIRECTORS AND OFFICERS: Directors and officers of the Fund
who are directors and/or officers of the Investment Adviser receive no
compensation from the Fund. Directors of the Company who are not interested
persons as defined in the Investment Company Act of 1940 receive
compensation in the amount of $1,000 per annum and a $1,000 purchase of
Meridian Fund or Meridian Value Fund shares, plus expenses for each Board of
Directors meeting attended. The aggregate compensation due the unaffiliated
Directors of the Fund as of June 30, 2000, was $4,374.
6. COST OF INVESTMENTS: The cost of investments purchased and the proceeds from
sales of investments, excluding short-term obligations, for the year ended
June 30, 2000, were $38,871,396 and $109,547,289, respectively. The cost of
the U.S. Government securities purchased and the proceeds from sales of such
investments were $9,885,492, and $20,000,000, respectively for the year
ended June 30, 2000.
11
<PAGE> 12
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
To the Board of Directors and Shareholders
of Meridian Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Meridian Fund (the "Fund") at June
30, 2000, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended and the
financial highlights for each of the periods presented, in conformity with
accounting principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as the "financial
statements") are the responsibility of the Fund's 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 auditing
standards generally accepted in the United States which require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting 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 June
30, 2000 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
San Francisco, California
August 4, 2000
12
<PAGE> 13
MANAGEMENT'S DISCUSSION OF MERIDIAN FUND PERFORMANCE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
The Meridian Fund's investment performance of 21.45% during the fiscal year
ended June 30, 2000, reflected the strength in small and medium sized growth
stocks. This market condition materially affected the Fund's performance. For
example the Russell 2000 index was up 14.32% during the period while the S&P 500
gained 7.24%. The Fund tends to emphasize investments in companies that are
relatively small in terms of total assets, revenues and earnings, that the
Investment Adviser believes may have prospects for above average growth in
revenue and earnings. Based on following this strategy the Fund's best
performing areas included cellular communications, energy, health services,
industrial products & services, technology, telecommunications and
transportation. The worst performing groups were banking and finance, consumer
products & services, correctional & detention facilities, hotels & lodging,
insurance, leisure & amusement, real estate, restaurants, and retail. Of a total
of 76 investments, 46 advanced and 30 declined.
ADDITIONAL BENCHMARK INDEX
The S&P 500 is a market capitalization weighted index of 500 large
capitalization securities. For the prior and current fiscal year, the Adviser
determined that the most appropriate benchmark for the Meridian Fund is the
Russell 2000 index, as the Meridian Fund invests primarily in mid and small
capitalization securities and the weighting given the largest capitalization
securities within the S&P 500 increased dramatically over the past several
years. The Russell 2000 is a broad based index of 2000 mid and small
capitalization securities. The returns of both benchmark indices have been
presented for comparison.
VALUE OF $10,000 INVESTED IN MERIDIAN FUND, THE S&P 500 & THE RUSSELL 2000
[MERIDIAN FUND LINE GRAPH]
<TABLE>
<CAPTION>
S&P 500 MERIDIAN FUND RUSSELL 2000
------- ------------- ------------
<S> <C> <C> <C>
6/30/90 10000 10000 10000
6/30/91 10723 10562 10133
6/30/92 12165 12780 11606
6/30/93 13824 16551 14624
6/30/94 14025 17127 15259
6/30/95 17680 19943 18328
6/30/96 22273 24210 22706
6/30/97 30001 27580 26413
6/30/98 39042 32247 30773
6/30/99 47913 33230 31235
6/30/00 51383 40358 35709
</TABLE>
Past performance is not predictive of future performance. Net asset value,
investment return and principal value will fluctuate, so shares, when redeemed,
may be worth more or less than their original cost.
13
<PAGE> 14
[This page intentionally left blank.]
<PAGE> 15
[This page intentionally left blank.]
<PAGE> 16
MERIDIAN FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
This report is submitted for
the information of shareholders of
Meridian Fund, Inc. It is not
authorized for distribution to
prospective investors unless
preceded or accompanied by an
effective prospectus.
-----------------------------------------------------------------
Officers and Directors
RICHARD F. ASTER, JR.
President and Director
MICHAEL S. ERICKSON
HERBERT C. KAY
JAMES B. GLAVIN
MICHAEL STOLPER
Directors
GREGG B. KEELING
Treasurer and Secretary
Custodian
BANK OF NEW YORK
New York, New York
Transfer Agent and Disbursing Agent
PFPC, INC.
King of Prussia, Pennsylvania
(800) 446-6662
Counsel
MORRISON & FOERSTER LLP
Washington, D.C.
Auditors
PRICEWATERHOUSECOOPERS LLP
San Francisco, California
ANNUAL REPORT
[MERIDIAN FUND LOGO]
60 E. Sir Francis Drake Blvd.
Wood Island, Suite 306
Larkspur, CA 94939
(415) 461-6237
Telephone (800) 446-6662
JUNE 30, 2000
