<PAGE> 1
[PROVIDENT MUTUAL LETTERHEAD]
JULY, 2000
Dear Policyholder:
We are pleased to send you the semi-annual report for one of the fund groups
from your variable life insurance policy or variable annuity contract. In
additional mailings, you will also receive the annual reports of other fund
groups in which you have invested. The investments available through your
variable policies or contracts are managed by some of the best fund management
companies in the country.
Your variable insurance product is unique in that it combines the protection and
tax advantages of traditional insurance with the growth potential of equity
investments. A leader in the variable products marketplace, Provident Mutual
Life Insurance Company can trace its roots back more than two centuries. Our
financial strength enables us to continually offer a variety of life insurance
policies and annuity contracts designed to help you meet your needs as you move
through the various stages of your life.
We are proud to serve you as one of our policyholders, and we appreciate your
business. If you have a question about your policy, or would like more
information about our products and services, please contact your local agent or
our Customer Service Center at 1-800-688-5177.
Sincerely,
/s/ Robert W. Kloss
Robert W. Kloss
President, Chairman and CEO
Securities offered through 1717 Capital Management Company, A Registered
Investment Adviser. Member NASD, SIPC.
A Heritage of Strength--A Vision for the Future
<PAGE> 2
--------------------------------------------------------------------------------
To Our Variable Life Policyholders and Variable Annuity Contractholders
--------------------------------------------------------------------------------
We are pleased to send you the June 30, 2000 Semi-Annual Report for the Market
Street Fund, Inc., its Growth, Money Market, Bond, Managed, Aggressive Growth,
International, Sentinel Growth, Equity 500 Index, All Pro Large Cap Growth, All
Pro Large Cap Value, All Pro Small Cap Growth, and the All Pro Small Cap Value.
Economic Overview and Investment Perspective
The year began with the economy firing on all cylinders. Strong economic growth
was propelled by productivity gains, continuing low inflation, low unemployment
and stock market gains that kept consumer spending high. The 5.5% growth rate in
gross domestic product in the first quarter of the year followed a stunning 7.3%
rise in the fourth quarter 1999. Unemployment fell to a 30-year low of 3.9% in
April before edging up to 4% in June. The Consumer Price Index increased 0.1% in
May bringing the increase over the past 12 months to 3.1%. In an effort to
prevent the economy from overheating, the Federal Reserve raised the Federal
Funds rate three times in the first six months of the year. The first rate hike,
25 basis points, occurred on February 2 and was followed by another 25 basis
point increase on March 21. A third increase of 50 basis points occurred on May
21 that raised the Federal Funds rate to 6.50%.
In January, the U.S. Treasury yield curve became "inverted" leaving long-term
yields lower than short-term yields. These changes reflected both the increases
in the Federal Funds rate and the Treasury Department's unprecedented debt-
retirement program. U.S. Treasuries were the top performing asset class with the
yield on the 30 year U.S. Treasury bond decreasing from 6.48% at end of 1999 to
5.90% at the end of June producing a total return of 9.78%. The yield on the
10-year U.S. Treasury bond decreased from 6.44% to 6.03% and produced a total
return of 5.32%. The Lehman Aggregate Bond Index, a benchmark for all types of
bonds, gained 3.99% for the six months ended June 30.
In the U.S. domestic equity markets, volatility reigned. Through most of the
first quarter, small cap technology and Internet related stocks dominated, with
the NASDAQ composite index hitting an all time high of 5048.62 on March 10. This
represented a 22% increase from the year ended December 31, 1999. However, by
the end of March the long awaited correction in technology stocks began. The
NASDAQ composite finished down 2.64% for the month and the Russell 2000 Index of
small companies decreased 6.59% for the month. At the same time, the blue chip
large cap stocks mounted a comeback. For the month of March the S&P 500 surged
9.78% while the Dow Jones Industrial Average rose 7.97%. Even the long neglected
Old Economy value stocks began a short-lived comeback. By mid-April, the
markets' focus on the Federal Reserve's actions and accelerating inflation
marked a setback for the equity markets. This continued through most of May when
the NASDAQ Composite closed at 3164.55 on May 23, the low for the first half of
the year. As signs of economic moderation emerged at the end of May, the stock
market began to rally again. By June 30, 2000, the year to date return for the
S&P 500 was -0.43%; the Russell 2000 returned 3.04% and the NASDAQ returned
-2.54%. The Wilshire 5000, a good measure of the overall stock market, returned
-.84% for the six months ended June 30, 2000.
Total return at June 30, 2000 for international equities as measured by the
Morgan Stanley Capital International (MSCI) EAFE Index was -4.1%. In general,
overseas equities demonstrated the same volatility as did U.S. equities and in
some cases mirrored the U.S. in the first six months of the year. In European
markets, New Economy stocks -- telecom, media and technology dominated during
the first quarter and quickly
1
<PAGE> 3
fell in April and May in concert with the sell-off of U.S. technology stocks.
Positive returns in June were aided by gains in Old Economy stocks. In Japan,
the equity markets declined due to slow economic recovery, the weakness of the
yen against the U.S. dollar and concerns following the appointment of a new
Prime Minister.
What will the remainder of the year bring? Although there is some recent
economic data that suggests that the U.S. economy is beginning to slow, the
Federal Reserve has made it clear that its goal is to slow economic growth to
within a range of 3% to 4%. The consensus is that the Fed has not yet finished
tightening. Therefore, both domestic and international markets will continue to
be unpredictable and volatile. In light of this uncertainty, we once again
stress the need for diversification through a balanced portfolio of stocks and
bonds as offered within the Market Street Fund.
Review of Fund Portfolio Performance
As always, it is important to recall in interpreting these results that the
advisers of the portfolios of the Market Street Fund do not engage in market
timing. That is to say that in all but times of great market turmoil, they
endeavor to keep the vast majority of portfolio assets fully invested. Thus,
they attempt to add value by security selection utilizing the methods and in the
markets specified in the Fund Prospectus. Their performance should be judged
according to how well they do relative to market indices measuring the same type
activity.
We appreciate the opportunity to have served you in the past and look forward to
serving you during the remainder of 2000 and many years into the future.
/s/ ROSANNE GATTA
Rosanne Gatta
President
The Market Street Fund, Inc.
* Past performance is not predictive of future results. Moreover, the
relationship between the performance of the Fund Portfolios and the actual
increases or decreases in a policy's cash value is not directly proportional
due to certain charges deducted from premiums and under the policies which are
not reflected in the returns shown. Please see the current prospectus for an
explanation of these charges and for illustrations that take such charges into
account in calculating cash values.
2
<PAGE> 4
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Growth Portfolio
2000 Semi-Annual Review
Sentinel Advisors Company
--------------------------------------------------------------------------------
The Market Street Fund Growth Portfolio achieved a total return of 0.8% for the
first six months of 2000, compared to -2.2% for the average Morningstar Large
Value fund. The S&P 500, declined 0.4% in the six month period and absolute
returns for most equity market benchmarks were quite modest for the first half
of the year. Overall, the Portfolio experienced a good first half.
Throughout the first half of 2000, the stock market has been characterized by
above-average volatility. The level of uncertainty has increased due to the
Federal Reserve's series of interest rate increases. While signs have begun to
appear that economic activity is slowing, it is unclear whether we will
experience the proverbial "soft landing". Corporate earnings trends are
beginning to be impacted by the slowing economy, decreasing investor confidence
for many companies.
First half performance was strong for a number of holdings in the healthcare,
energy, and utility areas, sectors where the Portfolio has broad representation.
During the first half of 2000, the Portfolio's exposure to energy, technology
and healthcare was increased, while basic materials, financials and consumer
staples stocks were sold.
Looking forward, we believe that the economic environment and its impact on
individual company prospects will be key. In a slowing economy, fewer companies
are likely to be able to meet investor expectations. In situations where
companies come up short versus expectations, punishment is swift and severe. Our
focus continues to be on owning companies with sustainable, enduring growth
prospects -- and on situations that exhibit strong valuation support. The
investment strategy of the Portfolio, which is focused on providing competitive
risk-adjusted returns, should serve investors well in the midst of an unsettled
financial market environment.
Van Harissis, CFA
3
<PAGE> 5
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Growth Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 95.7%
Aerospace & Defense -- 1.1%
Boeing Co. ............................................... 70,000 $ 2,926,875
------------
Automobiles -- 2.0%
Ford Motor Co. ........................................... 130,000 5,590,000
------------
Automotive & Equipment -- 0.1%
*Visteon Corp............................................. 17,021 206,384
------------
Banks -- 4.9%
Bank of America Corp. .................................... 60,438 2,598,834
Bank of New York Co., Inc. ............................... 145,500 6,765,750
Wells Fargo Co. .......................................... 112,000 4,340,000
------------
13,704,584
------------
Beverages -- 3.4%
Pepsico, Inc. ............................................ 210,000 9,331,875
------------
Broadcasting & Publishing -- 2.1%
Harcourt General, Inc. ................................... 3,200 174,000
McGraw-Hill, Inc. ........................................ 105,000 5,670,000
------------
5,844,000
------------
Building Materials -- 0.0%
Vulcan Materials Co. ..................................... 2,400 102,450
------------
Business & Consumer Services -- 3.7%
Automatic Data Processing, Inc. .......................... 59,800 3,203,037
*Convergys Corp. ......................................... 51,700 2,681,937
Electronic Data Systems Corp. ............................ 33,300 1,373,625
Omnicom Group, Inc. ...................................... 32,000 2,850,000
------------
10,108,599
------------
Chemicals & Allied Products -- 2.8%
Du Pont (E.I.) de Nemours & Co. .......................... 26,000 1,137,500
Pharmacia Corp. .......................................... 108,000 5,582,250
Praxair, Inc. ............................................ 27,700 1,037,019
------------
7,756,769
------------
</TABLE>
4
<PAGE> 6
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Communications -- 6.6%
ALLTEL Corp. ............................................. 42,800 $ 2,650,925
AT&T Corp. ............................................... 80,000 2,530,000
GTE Corp. ................................................ 115,800 7,208,550
Lucent Technologies, Inc. ................................ 43,300 2,565,525
*Nortel Networks Corp. ................................... 2,200 150,150
SBC Communications, Inc. ................................. 60,536 2,618,182
*Tellabs, Inc. ........................................... 10,600 725,438
------------
18,448,770
------------
Computers -- 4.1%
Compaq Computer Corp. .................................... 38,400 981,600
Hewlett Packard Co. ...................................... 24,000 2,997,000
International Business Machines Corp. .................... 60,000 6,573,750
*Sun Microsystems, Inc. .................................. 9,400 854,812
------------
11,407,162
------------
Consumer Products -- 2.4%
Kimberly-Clark Corp. ..................................... 115,000 6,598,125
------------
Drugs & Health Care -- 12.9%
Abbott Laboratories....................................... 42,000 1,871,625
Aetna, Inc. .............................................. 20,500 1,315,844
American Home Products Corp. ............................. 153,200 9,000,500
*Baxter International, Inc. .............................. 59,400 4,176,562
Becton, Dickinson & Co. .................................. 92,100 2,642,119
Bristol-Myers Squibb Co. ................................. 26,900 1,566,925
*Edwards Lifesciences Corp. .............................. 11,880 227,205
*Elan Corp. Plc ADR....................................... 45,000 2,179,687
Eli Lilly & Co. .......................................... 20,200 2,017,475
HCA - The Healthcare Co. ................................. 53,300 1,618,987
Johnson & Johnson......................................... 46,300 4,716,812
Tenet Healthcare Corp. ................................... 43,900 1,185,300
UnitedHealth Group, Inc. ................................. 11,000 943,250
*Watson Pharmaceuticals, Inc. ............................ 43,000 2,311,250
------------
35,773,541
------------
</TABLE>
5
<PAGE> 7
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Electronics -- 5.6%
*Agilent Technologies, Inc. .............................. 9,153 $ 675,034
General Electric Co. ..................................... 87,000 4,437,000
Koninklijke (Royal) Philips Electronics N.V. ADR.......... 68,000 3,230,000
Motorola, Inc. ........................................... 165,000 4,795,312
*Solectron Corp. ......................................... 18,600 778,875
*Texas Instruments, Inc. ................................. 25,000 1,717,187
------------
15,633,408
------------
Energy -- 3.7%
Chevron Corp. ............................................ 41,600 3,528,200
Royal Dutch Petroleum Co. ................................ 58,500 3,601,406
Williams Cos., Inc. ...................................... 78,000 3,251,625
------------
10,381,231
------------
Entertainment -- 1.2%
*Walt Disney Co. ......................................... 86,000 3,337,875
------------
Finance -- 4.5%
American Express Co. ..................................... 80,100 4,175,212
Citigroup, Inc. .......................................... 103,300 6,223,825
First Data Corp. ......................................... 43,400 2,153,725
------------
12,552,762
------------
Food & Food Distributors -- 3.8%
*Kroger Co. .............................................. 209,000 4,611,062
McCormick & Co., Inc. .................................... 88,900 2,889,250
Sara Lee Corp. ........................................... 155,000 2,993,437
------------
10,493,749
------------
Hotel/Restaurants -- 0.9%
Marriott International, Inc. Class A...................... 70,200 2,531,588
------------
Industrial Diversified -- 0.8%
Martin Marietta Materials, Inc. .......................... 800 32,350
Parker-Hannifin Corp. .................................... 60,000 2,055,000
------------
2,087,350
------------
Insurance -- 4.6%
American General Corp. ................................... 63,000 3,843,000
American International Group, Inc. ....................... 58,125 6,829,688
Jefferson-Pilot Corp. .................................... 35,000 1,975,313
------------
12,648,001
------------
Machinery & Heavy Equipment -- 0.8%
Dover Corp. .............................................. 54,400 2,206,600
------------
</TABLE>
6
<PAGE> 8
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Manufacturing -- 1.6%
Alcoa, Inc. .............................................. 51,600 $ 1,496,400
Minnesota Mining & Manufacturing Co. ..................... 15,800 1,303,500
Tyco International Ltd. .................................. 36,300 1,719,713
------------
4,519,613
------------
Medical & Medical Services -- 0.6%
*Genzyme Corp. ........................................... 26,000 1,545,375
------------
Medical Instruments -- 0.5%
*Boston Scientific Corp. ................................. 64,000 1,404,000
------------
Oil & Gas -- 8.6%
Burlington Resources, Inc. ............................... 102,600 3,924,450
Conoco, Inc. Class B...................................... 164,027 4,028,913
Exxon Mobil Corp. ........................................ 121,989 9,583,761
*Global Marine, Inc. ..................................... 57,300 1,615,144
*Ocean Energy, Inc. ...................................... 70,000 993,125
Santa Fe International Corp. ............................. 67,000 2,340,813
Transocean Sedco Forex, Inc. ............................. 22,452 1,199,779
------------
23,685,985
------------
Oil Field Equipment & Services -- 2.8%
Halliburton Co. .......................................... 98,700 4,657,406
Schlumberger Ltd. ........................................ 43,200 3,223,800
------------
7,881,206
------------
Paper & Forest Products -- 1.1%
International Paper Co. .................................. 102,800 3,064,725
------------
Railroads -- 0.7%
Union Pacific Corp., Series A............................. 55,000 2,045,313
------------
Real Estate -- 0.7%
Weyerhaeuser Co. ......................................... 42,500 1,827,500
------------
Semiconductors -- 0.7%
Intel Corp. .............................................. 10,000 1,336,875
*National Semiconductor Corp. ............................ 10,000 567,500
------------
1,904,375
------------
Software -- 0.8%
*BMC Software, Inc. ...................................... 29,200 1,065,344
Network Associates, Inc. ................................. 52,300 1,065,613
------------
2,130,957
------------
Tobacco -- 0.7%
Philip Morris Cos., Inc. ................................. 68,000 1,806,250
------------
</TABLE>
7
<PAGE> 9
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY SHARES
DESCRIPTION AND PERCENTAGE OF PORTFOLIO DATE OR PAR VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK (CONTINUED)
Utilities -- 4.9%
Duke Power Co. ........................................... 125,000 $ 7,046,875
Enron Corp. .............................................. 99,400 6,411,300
------------
13,458,175
------------
TOTAL COMMON STOCK (COST $220,731,601).................. 264,945,172
------------
COMMERCIAL PAPER -- 3.3%
American Express Credit Corp., 6.77%...................... 07/07/2000 $4,000,000 3,995,487
Merrill Lynch & Co., Inc., 6.55%.......................... 07/05/2000 5,000,000 4,996,361
------------
TOTAL COMMERCIAL PAPER (COST $8,991,848)................ 8,991,848
------------
SHORT TERM INVESTMENTS -- 0.7%
Provident Institutional Funds -- TempCash................. 2,008,349 2,008,349
------------
TOTAL SHORT TERM INVESTMENTS (COST $2,008,349).......... 2,008,349
------------
TOTAL INVESTMENTS -- 99.7% (COST $231,731,798).......... 275,945,369
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.3%............... 953,188
------------
NET ASSETS -- 100.0%
(Equivalent to $17.63 per share based on 15,702,330 shares
of capital stock outstanding)........................... $276,898,557
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($276,898,557/15,702,330 shares outstanding).............. $ 17.63
============
</TABLE>
*Non-Income producing.
See accompanying notes to financial statements.
8
<PAGE> 10
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Money Market Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
DESCRIPTION AND PERCENTAGE OF PORTFOLIO DATE PAR VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER -- 94.9%
Automobiles -- 9.8%
DaimlerChrysler, 6.54%.................................... 07/26/2000 $4,900,000 $ 4,877,746
General Motors Acceptance Corp., 6.57%.................... 07/27/2000 5,000,000 4,976,275
------------
9,854,021
------------
Banking -- 8.7%
Bank of America, 6.50%.................................... 07/07/2000 5,200,000 5,194,367
National City Credit Corp., 6.56%......................... 07/31/2000 3,500,000 3,480,867
------------
8,675,234
------------
Communications -- 5.4%
Bell Atlantic Network Funding, 6.54%...................... 07/11/2000 5,400,000 5,390,190
------------
Finance -- 24.6%
C.I.T. Financial Corp., 6.68%............................. 07/12/2000 5,000,000 4,989,794
Household Finance Corp., 6.53%............................ 07/24/2000 5,200,000 5,178,306
Northern Trust Co. (Chicago), 6.80%....................... 07/05/2000 2,600,000 2,598,036
Norwest Financial Corp., 6.20%............................ 07/06/2000 5,000,000 4,995,694
Prudential Funding (Private), 6.70%....................... 07/05/2000 2,900,000 2,897,841
Transamerica Finance Corp., 6.55%......................... 07/19/2000 4,000,000 3,986,900
------------
24,646,571
------------
Financial Services -- 3.0%
Merrill Lynch & Co., Inc., 6.53%.......................... 07/17/2000 3,000,000 2,991,293
------------
Foods -- 4.7%
Heinz (H.J.) Co., 6.50%................................... 07/28/2000 4,700,000 4,677,087
------------
Leasing -- 5.2%
International Lease Finance Corp., 6.55%.................. 07/19/2000 5,200,000 5,182,970
------------
Oil Equipment & Services -- 2.3%
Chevron, 6.75%............................................ 07/05/2000 2,300,000 2,298,275
------------
Utilities - Electric -- 28.2%
Ameren, 6.52%............................................. 07/13/2000 4,900,000 4,889,351
Duke Power Co., 6.53%..................................... 07/10/2000 5,200,000 5,191,511
Florida Power Corp., 6.57%................................ 07/11/2000 4,500,000 4,491,788
Kansas Power & Light Corp., 6.57%......................... 08/03/2000 5,150,000 5,118,984
Southwest Public, 6.525%.................................. 07/14/2000 3,292,000 3,284,243
Southwest Public, 6.63%................................... 07/14/2000 1,700,000 1,695,930
Union Electric Co., 6.50%................................. 07/14/2000 3,500,000 3,491,785
------------
28,163,592
------------
</TABLE>
9
<PAGE> 11
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Money Market Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY SHARES OR
DESCRIPTION AND PERCENTAGE OF PORTFOLIO DATE PAR VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Utilities -- Telephone -- 3.0%
GTE Finance Corp., 6.55%.................................. 07/13/2000 $3,000,000 $ 2,993,450
------------
TOTAL COMMERCIAL PAPER (COST $94,872,683)............... 94,872,683
------------
SHORT TERM INVESTMENTS -- 5.7%
Provident Institutional Funds -- TempCash................. 5,719,962 5,719,962
------------
TOTAL SHORT TERM INVESTMENTS (COST $5,719,962).......... 5,719,962
------------
TOTAL INVESTMENTS -- 100.6% (COST $100,592,645)......... 100,592,645
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.6%)............. (574,085)
------------
NET ASSETS -- 100.0%
(Equivalent to $1.00 per share based on 100,018,625 shares
of capital stock outstanding)........................... $100,018,560
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($100,018,560/100,018,625 shares outstanding)............. $ 1.00
============
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 12
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Bond Portfolio
2000 Semi-Annual Review
Sentinel Advisors Company
--------------------------------------------------------------------------------
The Market Street Fund Bond Portfolio's total return for the first half of 2000
was 2.95%. The Lehman Corporate Bond Index returned 2.68%, while the Lehman
Aggregate Bond Index returned 3.99% for the same period.
U.S. economic growth remained brisk during the first half of the year, fueled by
strong consumer spending, as the growth rate exceeded 5%. Inflation, as measured
by the year-over-year change in the Consumer Price Index, increased to 3.1%
versus 2.1% a year ago as oil prices surged higher. In an effort to slow the
economy and to keep inflation in check, the Federal Reserve tightened monetary
policy three times for a total of 100 basis points.
Against this backdrop, the six-month period ended June 30, 2000 can once again
be categorized as one of high volatility with respect to the direction of
interest rates, the shape of the U.S. Treasury yield curve, and the relative
spreads of corporate bonds and mortgage-backed securities (MBS). After initially
rising 25 to 35 basis points early in the year, U.S. Treasury securities staged
a powerful rally as the U.S. Treasury Department commenced their debt repurchase
or "buyback" program. Yields on long-maturity U.S. Treasuries plunged 75 to 90
basis points; intermediate yields fell 35 basis points; while short-maturity
yields were essentially unchanged. This led to a dramatic inversion of the U.S.
Treasury yield curve. As measured by the 2-year Note to 30-year Bond spread, the
yield curve inverted from a +24 basis point slope at year-end 1999 to -65 basis
points at June 30, 2000; a shift of 89 basis points. This extreme movement in
U.S. Treasury yields wreaked havoc on the "spread" sectors of the fixed-income
market. These sectors did recover strongly in the month of June, but have still
lagged the performance of U.S. Treasuries on a year-to-date basis.
Over the first half of the year, the effective duration of the Portfolio held
steady at 5.8 years. Exposure to corporate bonds was cut from 53% of assets as
of December 31st, 1999 to a current positioning of 41%. In addition, exposure to
the MBS sector was reduced to 18% of asset from an initial level of 22%. We
increased the Portfolio's weighting of U.S. Treasuries from 24% to a current
level of 38%. This reallocation of the Portfolio's holdings allowed it to
capture the majority of the U.S. Treasury rally. However, relative performance
was negatively impacted by a credit deterioration in an industrial holding,
Laidlaw, Inc., which fell well below non-investment grade status. That position
was liquidated in the second quarter.
Going forward, there is growing evidence that the Federal Reserve's action taken
this year to slow the economy is working and that core inflation will be modest.
With risk premiums on spread product at high levels, we look to reduce our U.S.
Treasury weighting opportunistically in favor of both corporate bonds and
mortgage-backed securities.
David M. Brownlee, CFA
11
<PAGE> 13
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Bond Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
DESCRIPTION AND PERCENTAGE OF PORTFOLIO DATE PAR VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. TREASURY BONDS -- 17.0%
U.S. Treasury Bonds, 7.25%................................ 05/15/2016 $1,000,000 $ 1,100,313
U.S. Treasury Bonds, 6.00%................................ 02/15/2026 2,500,000 2,443,750
U.S. Treasury Bonds, 5.25%................................ 02/15/2029 3,000,000 2,661,564
-----------
TOTAL U.S. TREASURY BONDS (COST $6,412,755)............. 6,205,627
-----------
U.S. TREASURY NOTES -- 20.8%
U.S. Treasury Notes, 5.875%............................... 11/15/2004 2,500,000 2,460,985
U.S. Treasury Notes, 4.75%................................ 11/15/2008 1,000,000 908,125
U.S. Treasury Notes, 5.50%................................ 05/15/2009 2,000,000 1,912,500
U.S. Treasury Notes, 6.50%................................ 02/15/2010 2,250,000 2,323,062
-----------
TOTAL U.S. TREASURY NOTES (COST $7,571,673)............. 7,604,672
-----------
AGENCY OBLIGATIONS -- 17.5%
Federal Home Loan Mortgage Corp., 5.00%................... 01/15/2004 1,000,000 936,927
Federal Home Loan Mortgage Corp., 8.00%................... 11/01/2008 197,653 200,679
Federal Home Loan Mortgage Corp., 8.00%................... 03/01/2017 14,269 14,488
Federal National Mortgage Association, 10.50%............. 11/01/2017 393,119 417,566
Federal National Mortgage Association, 8.00%.............. 03/01/2022 399,947 401,572
Federal National Mortgage Association, 7.50%.............. 03/01/2026 341,317 336,304
Federal National Mortgage Association, 6.00%.............. 04/01/2028 975,689 892,450
Federal National Mortgage Association, 8.50%.............. 04/01/2028 852,856 868,314
Federal National Mortgage Association, 7.00%.............. 09/01/2028 815,503 786,961
Federal National Mortgage Association, 7.00%.............. 11/01/2028 294,094 283,801
Federal National Mortgage Association, 7.00%.............. 12/01/2029 992,406 957,672
Government National Mortgage Association, 7.50%........... 09/15/2023 1,238,258 1,229,358
-----------
TOTAL AGENCY OBLIGATIONS (COST $7,474,114).............. 7,326,092
-----------
CORPORATE BONDS -- 41.1%
Automobiles -- 2.8%
DaimlerChrysler NA Holdings, 7.75%........................ 06/15/2005 1,000,000 1,008,597
-----------
Banks -- 1.4%
Bank of America Corp., 7.80%.............................. 02/15/2010 500,000 497,355
-----------
Broker -- 1.4%
Goldman Sachs, 7.80%...................................... 01/28/2010 500,000 495,442
-----------
Communications -- 9.6%
Comsat Corp. Medium Term Note, 8.55%...................... 12/13/2006 500,000 527,390
Deutsche Telekom International Finance, 8.25%............. 06/15/2030 1,000,000 1,016,250
MCI WorldCom, Inc., 6.40%................................. 08/15/2005 1,000,000 947,875
US West Communications, 7.625%............................ 06/09/2003 1,000,000 998,124
-----------
3,489,639
-----------
</TABLE>
12
<PAGE> 14
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Bond Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
DESCRIPTION AND PERCENTAGE OF PORTFOLIO DATE PAR VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS (CONTINUED)
Computers -- 1.4%
Sun Microsystems, Inc., 7.00%............................. 08/15/2002 $ 500,000 $ 497,257
-----------
Consumer Products -- 2.0%
Fortune Brands, 7.125%.................................... 11/01/2004 750,000 738,466
-----------
Consumer Services -- 0.6%
Service Corp. Int'l, 6.75%................................ 06/01/2001 250,000 215,000
-----------
Containers -- 1.9%
Crown Cork & Seal Co., Inc., 7.125%....................... 09/01/2002 750,000 716,107
-----------
Energy -- 1.4%
Emerson Electric, 7.875%.................................. 06/01/2005 500,000 514,043
-----------
Food & Food Distributors -- 4.7%
Anheuser Busch, 7.50%..................................... 03/15/2012 1,000,000 1,002,141
Safeway, Inc., 7.00%...................................... 09/15/2002 750,000 743,927
-----------
1,746,068
-----------
Industrial -- 1.3%
IMC Global, Inc., 7.40%................................... 11/01/2002 500,000 493,799
-----------
Insurance -- 1.4%
GE Global Insurance, 7.75%................................ 06/15/2030 500,000 494,740
-----------
Manufacturing -- 2.7%
FMC Corp., 7.125%......................................... 11/25/2002 1,000,000 982,489
-----------
Oil & Gas -- 1.3%
KN Energy, Inc., 6.45%.................................... 03/01/2003 500,000 484,780
-----------
Real Estate -- 2.0%
Simon Property Group LP, Inc., 6.625%..................... 06/15/2003 750,000 717,355
-----------
Retail Merchandising -- 1.3%
Penny (J.C.) & Co. Notes, 7.25%........................... 04/01/2002 500,000 486,239
-----------
Utilities -- 1.3%
Calenergy Co., Inc. Senior Notes, 7.52%................... 09/15/2008 500,000 483,802
-----------
TOTAL CORPORATE BONDS (COST $14,170,003)................ 14,061,178
-----------
COMMERCIAL PAPER -- 6.3%
American General Finance Corp., 6.55%..................... 08/15/2000 500,000 495,906
Merrill Lynch & Co., Inc., 6.54%.......................... 08/15/2000 1,800,000 1,785,285
-----------
TOTAL COMMERCIAL PAPER (COST $2,281,191)................ 2,281,191
-----------
</TABLE>
13
<PAGE> 15
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Bond Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT TERM INVESTMENTS -- 5.1%
Provident Institutional Funds -- TempCash.............................. 1,877,333 $ 1,877,333
-----------
TOTAL SHORT TERM INVESTMENTS (COST $1,877,333)....................... 1,877,333
-----------
TOTAL INVESTMENTS -- 107.8% (COST $39,787,069)....................... 39,356,093
LIABILITIES IN EXCESS OF OTHER ASSETS -- (7.8%).......................... (2,863,145)
-----------
NET ASSETS -- 100.0%
(Equivalent to $10.25 per share based on 3,560,237 shares of capital
stock outstanding)................................................... $36,492,948
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($36,492,948/3,560,237 shares outstanding)............................. $ 10.25
===========
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 16
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Managed Portfolio
2000 Semi-Annual Review
Sentinel Advisors Company
--------------------------------------------------------------------------------
The Market Street Fund Managed Portfolio achieved a total return of 2.4% for the
first half of 2000, compared to 1.3% for the average Lipper Balanced Fund. The
S&P 500 had a -0.4% return during the first half, versus the 3.99% return of the
Lehman Aggregate Bond Index. Absolute returns for most equity market benchmarks
were quite modest for the first half of the year, and a more conservative
allocation to equities was a positive for the Portfolio. At the end of June, the
asset allocation of the Portfolio was 54% common stocks, 44% fixed income and 2%
cash. This is little changed from the 56% common stocks, 42% fixed income and 2%
cash positions as of the end of 1999.
First half performance was strong for a number of holdings in the healthcare,
energy, and utility areas, sectors where the Portfolio has broad representation.
Relative returns were negatively impacted by more economically sensitive sectors
like basic materials and consumer cyclicals. Exposure to these sectors was
reduced during the first half, as signs of a slowdown in the rate of U.S.
economic growth became more apparent. During the first half of 2000, the
Portfolio also reduced its exposure to consumer staples and the financial
sector, while increasing its exposure to technology and healthcare.
In the fixed-income market, the first half of the year can once again be
categorized as one of high volatility with respect to the direction of interest
rates, the shape of the U.S. Treasury yield curve, and the relative spreads of
corporate bonds and mortgage-backed securities. After initially rising 25 to 35
basis points early in the year, U.S. Treasury securities staged a powerful rally
as the U.S. Treasury Department commenced their "buyback" program. This sharp
movement in U.S. Treasuries wreaked havoc on the "spread" sectors of the
fixed-income market. The Portfolio over-weighted U.S. Treasuries early in the
year, capturing the majority of the rally in its performance. The duration of
the bond component of the Portfolio currently stands at 6.1 years, unchanged
from year-end 1999.
We are reasonably confident that U.S. economic growth will continue over the
balance of the year, although the rate of growth will be much slower than in the
first two quarters. While the outlook for overall corporate profits is still
positive, we remain cautious with respect to the valuation levels of many large
capitalization growth stocks that have come to dominate the returns of market
indices like the S&P 500. We believe that a disciplined value-oriented
investment strategy is most appropriate for the Portfolio in the current stock
market environment. As for fixed-income, we are currently emphasizing government
bonds. As always, we believe that a conservative balanced approach that
emphasizes investment quality, valuation and income should serve our
shareholders well in both strong markets and more turbulent ones.
David M. Brownlee, CFA
Van Harissis, CFA
15
<PAGE> 17
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Managed Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 53.5%
Aerospace & Defense -- 0.3%
Boeing Co. ............................................... 4,900 $ 204,881
------------
Automobiles -- 1.0%
Ford Motor Co. ........................................... 16,000 688,000
------------
Automotive & Equipment -- 0.0%
*Visteon Corp. ........................................... 2,095 25,401
------------
Banks -- 2.5%
Bank of America Corp. .................................... 6,852 294,636
Bank of New York Co, Inc. ................................ 19,100 888,150
Wells Fargo Co. .......................................... 14,000 542,500
------------
1,725,286
------------
Beverages -- 2.0%
Pepsico, Inc. ............................................ 30,300 1,346,456
------------
Broadcasting & Publishing -- 1.2%
*Harcourt General, Inc. .................................. 800 43,500
McGraw-Hill, Inc. ........................................ 14,200 766,800
------------
810,300
------------
Building Materials -- 0.0%
Vulcan Materials Co. ..................................... 360 15,367
------------
Business & Consumer Services -- 2.3%
Automatic Data Processing, Inc. .......................... 8,500 455,281
*Convergys Corp. ......................................... 9,700 503,187
Electronic Data Systems Corp. ............................ 4,800 198,000
Omnicom Group, Inc. ...................................... 4,500 400,781
------------
1,557,249
------------
Chemicals & Allied Products -- 1.4%
Pharmacia Corp. .......................................... 15,600 806,325
Praxair, Inc. ............................................ 4,000 149,750
------------
956,075
------------
</TABLE>
16
<PAGE> 18
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Managed Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Communications -- 4.0%
ALLTEL Corp. ............................................. 6,200 $ 384,012
AT&T Corp. ............................................... 11,500 363,687
GTE Corp. ................................................ 16,000 996,000
Lucent Technologies, Inc. ................................ 7,500 444,375
Nortel Networks Corp. .................................... 600 40,950
SBC Communications, Inc. ................................. 8,422 364,251
*Tellabs, Inc. ........................................... 2,900 198,469
------------
2,791,744
------------
Computers -- 2.7%
Compaq Computer Corp. .................................... 5,400 138,037
Hewlett Packard Co. ...................................... 3,400 424,575
International Business Machines Corp. .................... 9,500 1,040,844
*Sun Microsystems, Inc. .................................. 2,600 236,437
------------
1,839,893
------------
Consumer Products -- 1.3%
Kimberly-Clark Corp. ..................................... 15,900 912,262
------------
Drugs & Health Care -- 8.0%
Abbott Laboratories....................................... 6,100 271,831
Aetna, Inc. .............................................. 2,900 186,144
American Home Products Corp. ............................. 22,600 1,327,750
*Baxter International, Inc. .............................. 9,000 632,812
Becton, Dickinson & Co. .................................. 15,700 450,394
Bristol-Myers Squibb Co. ................................. 4,000 233,000
*Edwards Lifesciences Corp. .............................. 1,800 34,425
*Elan Corp. Plc ADR....................................... 9,500 460,156
Eli Lilly & Co. .......................................... 2,900 289,637
HCA -- The Healthcare Co. ................................ 9,000 273,375
Johnson & Johnson......................................... 6,500 662,187
Tenet Healthcare Corp. ................................... 6,500 175,500
UnitedHealth Group, Inc. ................................. 1,800 154,350
*Watson Pharmaceuticals, Inc. ............................ 7,000 376,250
------------
5,527,811
------------
</TABLE>
17
<PAGE> 19
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Managed Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Electronics -- 3.7%
*Agilent Technologies, Inc. .............................. 1,296 $ 95,580
General Electric Co. ..................................... 11,400 581,400
Koninklijke (Royal) Philips Electronics NV ADR............ 11,500 546,250
Motorola, Inc. ........................................... 27,000 784,687
*Solectron Corp. ......................................... 4,400 184,250
*Texas Instruments, Inc. ................................. 5,500 377,781
------------
2,569,948
------------
Energy -- 2.0%
Chevron Corp. ............................................ 5,100 432,544
Royal Dutch Petroleum Co. ................................ 8,000 492,500
Williams Cos., Inc. ...................................... 11,300 471,069
------------
1,396,113
------------
Entertainment -- 0.6%
*Walt Disney Co. ......................................... 10,800 419,175
------------
Finance -- 2.5%
American Express Co. ..................................... 11,100 578,587
Citigroup, Inc. .......................................... 13,500 813,375
First Data Corp. ......................................... 7,000 347,375
------------
1,739,337
------------
Food & Food Distributors -- 1.5%
*Kroger Co. .............................................. 30,400 670,700
McCormick & Co, Inc. ..................................... 11,000 357,500
------------
1,028,200
------------
Hotel/Restaurants -- 0.4%
Marriott International, Inc. Class A...................... 8,500 306,531
------------
Industrial Diversified -- 0.4%
Parker-Hannifin Corp. .................................... 7,400 253,450
------------
Insurance -- 2.0%
American General Corp. ................................... 8,200 500,200
American International Group, Inc. ....................... 7,562 888,535
------------
1,388,735
------------
Machinery & Heavy Equipment -- 0.5%
Dover Corp. .............................................. 9,175 372,161
------------
</TABLE>
18
<PAGE> 20
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Managed Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Manufacturing -- 0.5%
Minnesota Mining & Manufacturing Co. ..................... 1,400 $ 115,500
Tyco International Ltd. .................................. 5,300 251,088
------------
366,588
------------
Medical & Medical Services -- 0.4%
*Genzyme Corp. ........................................... 4,100 243,694
------------
Medical Instruments -- 0.4%
*Boston Scientific Corp. ................................. 14,000 307,125
------------
Oil & Gas -- 4.5%
Burlington Resources, Inc. ............................... 14,800 566,100
Conoco, Inc. Class B...................................... 18,495 454,283
Exxon Mobil Corp. ........................................ 15,081 1,184,801
*Global Marine, Inc. ..................................... 8,200 231,138
*Ocean Energy, Inc. ...................................... 10,000 141,875
Santa Fe International Corp. ............................. 10,100 352,869
Transocean Sedco Forex, Inc. ............................. 3,248 173,565
------------
3,104,631
------------
Oil Field Equipment & Services -- 1.6%
Halliburton Co. .......................................... 13,900 655,906
Schlumberger Ltd. ........................................ 5,900 440,288
------------
1,096,194
------------
Paper & Forest Products -- 0.6%
International Paper Co. .................................. 14,200 423,338
------------
Railroads -- 0.4%
Union Pacific Corp., Series A............................. 7,800 290,063
------------
Real Estate -- 0.5%
Weyerhaeuser Co. ......................................... 8,000 344,000
------------
Semiconductors -- 0.7%
Intel Corp. .............................................. 2,500 334,219
National Semiconductor Corp. ............................. 2,500 141,875
------------
476,094
------------
Software -- 0.7%
*BMC Software, Inc. ...................................... 6,100 222,555
*Network Associates, Inc. ................................ 10,200 207,825
------------
430,380
------------
</TABLE>
19
<PAGE> 21
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Managed Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY SHARES OR
DESCRIPTION AND PERCENTAGE OF PORTFOLIO DATE PAR VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK (CONTINUED)
Utilities -- 2.9%
Duke Power Co. ........................................... 18,500 $ 1,042,938
Enron Corp. .............................................. 14,000 903,000
-----------
1,945,938
-----------
TOTAL COMMON STOCK (COST $29,649,339)................... 36,902,420
-----------
U.S. TREASURY NOTES -- 10.4%
U.S. Treasury Notes, 5.875%............................... 11/15/2004 $1,500,000 1,476,591
U.S. Treasury Notes, 6.50%................................ 02/15/2010 5,500,000 5,678,597
-----------
TOTAL U.S. TREASURY NOTES (COST $7,006,843)............. 7,155,188
-----------
U.S. TREASURY BONDS -- 6.8%
U.S. Treasury Bonds, 7.25%................................ 05/15/2016 1,000,000 1,100,313
U.S. Treasury Bonds, 5.25%................................ 02/15/2029 2,000,000 1,774,376
U.S. Treasury Bonds, 6.25%................................ 05/15/2030 1,750,000 1,836,954
-----------
TOTAL U.S. TREASURY BONDS (COST $4,648,614)............. 4,711,643
-----------
AGENCY OBLIGATIONS -- 12.1%
Federal Home Loan Mortgage Corp., 9.00%................... 08/01/2004 448,973 462,021
Federal Home Loan Mortgage Corp., 9.00%................... 12/01/2004 437,123 449,827
Federal Home Loan Mortgage Corp., 9.50%................... 08/01/2005 409,877 428,706
Federal Home Loan Mortgage Corp., 9.50%................... 03/01/2006 73,487 76,495
Federal Home Loan Mortgage Corp., 8.00%................... 11/01/2008 197,653 200,679
Federal National Mortgage Association, 7.00%.............. 12/01/2029 992,406 957,672
Federal National Mortgage Association, 7.00%.............. 03/01/2008 204,655 200,754
Federal National Mortgage Association, 7.75%.............. 03/01/2008 113,045 112,444
Federal National Mortgage Association, 7.75%.............. 05/01/2008 74,493 74,097
Federal National Mortgage Association, 10.50%............. 03/01/2018 311,017 330,358
Federal National Mortgage Association, 8.50%.............. 10/01/2026 717,868 730,879
Federal National Mortgage Association, 8.00%.............. 10/01/2027 506,256 508,313
Federal National Mortgage Association, 8.00%.............. 01/01/2028 565,239 567,536
Federal National Mortgage Association, 7.50%.............. 05/01/2028 400,009 394,134
Federal National Mortgage Association, 7.00%.............. 01/01/2030 995,806 960,953
Federal National Mortgage Association, 7.125%............. 01/15/2030 1,000,000 1,002,472
Government National Mortgage Association, 8.00%........... 03/15/2007 177,514 180,288
Government National Mortgage Association, 7.50%........... 11/15/2007 506,732 503,407
Government National Mortgage Association, 8.00%........... 08/15/2008 272,377 276,633
-----------
TOTAL AGENCY OBLIGATIONS (COST $8,462,348).............. 8,417,668
-----------
</TABLE>
20
<PAGE> 22
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Managed Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
DESCRIPTION AND PERCENTAGE OF PORTFOLIO DATE PAR VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS -- 14.6%
Automobiles -- 1.5%
DaimlerChrysler NA Holdings, 7.75%........................ 06/15/2005 $1,000,000 $ 1,008,597
-----------
Broker -- 0.7%
Goldman Sachs, 7.80%...................................... 01/28/2010 500,000 495,442
-----------
Communications -- 2.9%
Comsat Corp. Medium Term Note, 8.55%...................... 12/13/2006 500,000 527,390
Deutsche Telekom International Finance, 8.25%............. 06/15/2030 500,000 508,125
MCI WorldCom, Inc., 6.40%................................. 08/15/2005 500,000 473,938
US West Communications, 7.625%............................ 06/09/2003 500,000 499,062
-----------
2,008,515
-----------
Computers -- 0.4%
Sun Microsystems, Inc., 7.00%............................. 08/15/2002 250,000 248,629
-----------
Consumer Products -- 0.7%
Fortune Brands, Inc., 7.125%.............................. 11/01/2004 500,000 492,311
-----------
Consumer Services -- 0.6%
Service Corp. International, 6.75%........................ 06/01/2001 500,000 430,000
-----------
Containers -- 0.7%
Crown Cork & Seal Co., Inc., 7.125%....................... 09/01/2002 500,000 477,405
-----------
Food & Food Distributors -- 1.5%
Anheuser Busch, 7.50%..................................... 03/15/2012 1,000,000 1,002,141
-----------
Industrial -- 0.7%
IMC Global, Inc., 7.40%................................... 11/01/2002 500,000 493,799
-----------
Insurance -- 1.4%
GE Global Insurance, 7.75%................................ 06/15/2030 1,000,000 989,479
-----------
Manufacturing -- 1.4%
FMC Corp., 7.125%......................................... 11/25/2002 1,000,000 982,489
-----------
Real Estate -- 0.7%
Simon Property Group LP, Inc., 6.625%..................... 06/15/2003 500,000 478,237
-----------
Retail Merchandising -- 1.4%
Penney (J.C.) & Co. Notes, 7.25%.......................... 04/01/2002 1,000,000 972,477
-----------
TOTAL CORPORATE BONDS (COST $10,072,823)................ 10,079,521
-----------
COMMERCIAL PAPER -- 12.9%
American General Corp., 6.70%............................. 07/07/2000 2,000,000 1,997,767
Merrill Lynch & Co., Inc., 6.53%.......................... 08/15/2000 3,500,000 3,471,431
Northern Trust Co., 6.50%................................. 07/03/2000 3,400,000 3,398,772
-----------
TOTAL COMMERCIAL PAPER (COST $8,867,970)................ 8,867,970
-----------
</TABLE>
21
<PAGE> 23
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Managed Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT TERM INVESTMENTS -- 0.2%
Provident Institutional Funds -- TempCash............................... 106,486 $ 106,486
-----------
TOTAL SHORT TERM INVESTMENTS (COST $106,486).......................... 106,486
-----------
TOTAL INVESTMENTS -- 110.5% (COST $68,814,423)........................ 76,240,896
LIABILITIES IN EXCESS OF OTHER ASSETS -- (10.5%).......................... (7,243,918)
-----------
NET ASSETS -- 100.0%
(Equivalent to $15.81 per share based on 4,364,838 shares of capital
stock outstanding).................................................... $68,996,978
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($68,996,978/4,364,838 shares outstanding).............................. $ 15.81
===========
</TABLE>
*Non-Income Producing.
See accompanying notes to financial statements.
22
<PAGE> 24
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Aggressive Growth Portfolio
2000 Semi-annual Review
Sentinel Advisors Company
--------------------------------------------------------------------------------
The Market Street Fund Aggressive Growth Portfolio achieved a return of 20.8%
for the six-month period ending June 30, 2000. This performance far outpaced the
3.1% returned by the Russell 2000 index and the 8.3% returned by the average
fund in the Morningstar Small Blend category for the same six-month period.
The Portfolio's modest exposure to some of the leading genomics companies
coupled with very strong stock selection, especially in the technology sector,
are two key factors explaining the strong results. Taking profits on the
Portfolio's big winners and becoming somewhat more defensive in early to mid
March also was a contributing factor.
Although the Portfolio was modestly under-weighted in technology at the end of
the second quarter, it continues to be exposed to companies that will benefit
from some of the strongest technology trends (e.g. wireless communications and
the robust demand for analog semiconductors). The overweight in health care
should help the Portfolio outperform if the U.S. economy moderates in the second
half of this year.
Scott T. Brayman, CFA
23
<PAGE> 25
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Aggressive Growth Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 88.6%
Aerospace & Defense -- 0.7%
AAR Corp. ................................................ 48,000 $ 576,000
-----------
Air Transport -- 0.6%
*EGL, Inc. ............................................... 15,000 461,250
-----------
Banks -- 1.0%
Cullen Frost Bankers, Inc. ............................... 15,000 394,687
Wilmington Trust Corp. ................................... 9,000 384,750
-----------
779,437
-----------
Beverages -- 0.6%
*Robert Mondavi Corp., Class A............................ 15,000 460,312
-----------
Broadcasting & Publishing -- 1.0%
*IDG Books Worldwide, Inc. ............................... 18,000 163,125
Meredith Corp. ........................................... 18,000 607,500
-----------
770,625
-----------
Building Materials -- 0.3%
Vulcan Materials Co. ..................................... 5,500 234,781
-----------
Building - Maintenance & Service -- 0.4%
American Building Maintenance Industries.................. 15,000 345,000
-----------
Business & Consumer Services -- 9.0%
*Acxiom Corp. ............................................ 39,000 1,062,750
*Administaff, Inc. ....................................... 19,000 1,206,500
*Affiliated Computer Services, Inc. ...................... 58,000 1,917,625
*American Management Systems, Inc. ....................... 20,000 656,562
*Caci International, Inc. ................................ 22,000 429,000
*Catalina Marketing Corp. ................................ 10,000 1,020,000
*Healthcare Services Group................................ 41,700 187,650
Unifirst Corp. ........................................... 62,000 488,250
-----------
6,968,337
-----------
Chemicals & Allied Products -- 4.2%
*Bush Boake Allen, Inc. .................................. 25,000 1,093,750
Cambrex Corp. ............................................ 48,000 2,160,000
-----------
3,253,750
-----------
</TABLE>
24
<PAGE> 26
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Aggressive Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Communications -- 2.0%
Dynatech Corp. ........................................... 12,000 $ 217,500
*Tekelec, Inc. ........................................... 14,000 674,625
True North Communications................................. 15,000 638,437
-----------
1,530,562
-----------
Computers -- 5.6%
*Actel Corporation........................................ 15,000 684,375
*BISYS Group, Inc. ....................................... 9,000 553,500
*Black Box Corp. ......................................... 8,000 633,375
*Ciber, Inc. ............................................. 36,000 477,000
*Extreme Networks, Inc. .................................. 8,000 844,000
*Kronos, Inc. ............................................ 20,000 520,000
*Silicon Storage Technology, Inc. ........................ 7,000 618,187
*Storage Networks......................................... 100 9,025
-----------
4,339,462
-----------
Cosmetics and Toiletries -- 0.8%
Alberto-Culver Co. Class A................................ 25,000 656,250
-----------
Drugs & Health Care -- 7.9%
Barr Laboratories, Inc. .................................. 37,500 1,680,469
*ChiRex, Inc. ............................................ 38,000 760,000
*Medicis Pharmaceutical Corp., Class A.................... 15,000 855,000
*Millennium Pharmaceuticals, Inc. ........................ 5,000 559,375
*Myriad Genetics, Inc. ................................... 3,800 562,697
*Shire Pharmaceuticals Group.............................. 7,000 363,125
*Watson Pharmaceuticals, Inc. ............................ 25,000 1,343,750
-----------
6,124,416
-----------
Electronics -- 10.1%
*Aeroflex, Inc. .......................................... 12,000 596,250
Applied Power, Inc. Class A............................... 58,000 1,943,000
*Cable Design Technologies, Inc. ......................... 38,000 1,273,000
CTS Corp. ................................................ 37,000 1,665,000
Harman International Industries, Inc. .................... 29,000 1,769,000
Methode Electronics, Inc. Class A......................... 14,000 540,750
-----------
7,787,000
-----------
Environmental Control -- 2.3%
Donaldson Co., Inc........................................ 40,000 790,000
*Tetra Technologies, Inc. ................................ 68,000 964,750
-----------
1,754,750
-----------
</TABLE>
25
<PAGE> 27
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Aggressive Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Finance - Investment & Other -- 2.7%
Waddell & Reed Financial, Inc. ........................... 45,000 $ 1,476,562
Waddell & Reed Financial, Inc. Class B.................... 22,500 653,906
-----------
2,130,468
-----------
Food & Food Distributors -- 3.5%
McCormick & Co., Inc. .................................... 10,000 325,000
*Smart & Final, Inc. ..................................... 47,000 361,313
Tootsie Roll Industries, Inc. ............................ 15,000 525,000
Universal Foods Corp. .................................... 25,000 462,500
*Whole Foods Market, Inc. ................................ 25,000 1,032,813
-----------
2,706,626
-----------
Hotel/Restaurants -- 0.6%
*Hotel Reservations Network, Inc. Class A................. 15,000 446,250
-----------
Industrial & Commercial Services -- 1.1%
*Plexus Corp. ............................................ 7,500 847,500
-----------
Insurance -- 3.1%
Enhance Financial Services Group, Inc. ................... 24,000 339,000
HCC Insurance Holdings, Inc. ............................. 70,000 1,281,875
HSB Group, Inc. .......................................... 24,000 747,000
-----------
2,367,875
-----------
Manufacturing -- 2.9%
AptarGroup, Inc. ......................................... 50,000 1,350,000
*Gardner Denver Machinery, Inc. .......................... 26,000 464,750
Robbins & Myers, Inc. .................................... 20,000 456,250
-----------
2,271,000
-----------
Medical & Medical Services -- 3.4%
*Cell Therapeutics, Inc. ................................. 19,000 581,875
*Colorado Medtech, Inc. .................................. 48,000 303,000
*Covance, Inc. ........................................... 48,000 423,000
*CuraGen Corp. ........................................... 5,000 190,313
*Diversa Corp. ........................................... 5,000 165,625
*Invitrogen Corp. ........................................ 5,000 376,016
Regeneron Pharmaceuticals, Inc. .......................... 14,000 417,375
*Sequenom, Inc. .......................................... 4,000 181,500
-----------
2,638,704
-----------
</TABLE>
26
<PAGE> 28
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Aggressive Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Medical Equipment & Supplies -- 3.5%
Diagnostic Products Corp. ................................ 8,000 $ 256,000
Mentor Corp. ............................................. 24,000 652,500
*Minntech Corp. .......................................... 40,000 270,000
*Orthodontic Centers of America, Inc. .................... 48,000 1,086,000
*STARR Surgical Co. ...................................... 40,000 447,500
-----------
2,712,000
-----------
Oil & Gas -- 2.5%
*Cal Dive International, Inc. ............................ 14,000 758,625
Helmerich & Payne, Inc. .................................. 14,000 497,000
Santa Fe International Corp. ............................. 20,000 698,750
-----------
1,954,375
-----------
Oil Equipment & Services -- 2.1%
CARBO Ceramics, Inc. ..................................... 25,000 878,125
*Oceaneering International, Inc. ......................... 40,000 760,000
-----------
1,638,125
-----------
Real Estate -- 2.6%
Chateau Communities, Inc. ................................ 48,000 1,356,000
Liberty Property Trust.................................... 24,000 622,500
-----------
1,978,500
-----------
Restaurants -- 3.7%
*Applebee's International, Inc. .......................... 25,000 757,813
*Jack in the Box, Inc. ................................... 48,000 1,188,000
Ruby Tuesday, Inc. ....................................... 75,000 942,188
-----------
2,888,001
-----------
Retail Merchandising -- 2.1%
Casey General Stores, Inc. ............................... 63,000 653,625
Claire's Stores, Inc. .................................... 25,000 481,250
Ethan Allen Interiors, Inc. .............................. 10,000 240,000
*ShopKo Stores, Inc. ..................................... 15,000 230,625
-----------
1,605,500
-----------
</TABLE>
27
<PAGE> 29
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Aggressive Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY SHARES
DESCRIPTION AND PERCENTAGE OF PORTFOLIO DATE OR PAR VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK (CONTINUED)
Semiconductors -- 4.2%
*Alpha Industries, Inc. .................................. 10,000 $ 440,625
*C-Cube Microsystems, Inc. ............................... 15,000 294,375
Dallas Semiconductor Corp. ............................... 47,000 1,915,250
*Marvell Technology Group Ltd. ........................... 100 5,700
*PLX Technology, Inc. .................................... 14,000 581,000
-----------
3,236,950
-----------
Software -- 1.7%
*Filenet Corp. ........................................... 24,000 441,000
*Wind River Systems, Inc. ................................ 24,000 909,000
-----------
1,350,000
-----------
Transportation -- 2.4%
Expeditors International of Washington, Inc. ............. 9,000 427,500
*RailAmerica, Inc. ....................................... 14,999 95,619
Robinson (C.H.) Worldwide, Inc. .......................... 19,000 940,500
USFreightways Corp. ...................................... 15,000 368,438
-----------
1,832,057
-----------
TOTAL COMMON STOCK (COST $58,351,740)................... 68,645,863
-----------
CORPORATE BONDS -- 0.1%
Phoenix Investment Partners Ltd., 6.00%................... 11/01/2015 $ 62,500 81,406
-----------
TOTAL CORPORATE BONDS (COST $63,666).................... 81,406
-----------
COMMERCIAL PAPER -- 11.1%
American General Finance Corp., 6.52%..................... 07/05/2000 2,000,000 1,998,551
Chrysler Financial Corp., 6.70%........................... 07/13/2000 1,400,000 1,396,873
Ford Motor Credit Co., 6.53%.............................. 07/05/2000 1,700,000 1,698,767
Household Finance Corp., 6.54%............................ 07/10/2000 2,200,000 2,196,403
Transamerica Finance Corp., 6.75%......................... 07/14/2000 1,300,000 1,296,831
-----------
TOTAL COMMERCIAL PAPER (COST $8,587,425)................ 8,587,425
-----------
SHORT TERM INVESTMENTS -- 0.3%
Provident Institutional Funds -- TempCash................. 221,101 221,101
-----------
TOTAL SHORT TERM INVESTMENTS (COST $221,101)............ 221,101
-----------
TOTAL INVESTMENTS -- 100.1% (COST $67,223,932).......... 77,535,795
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1)%............. (71,472)
-----------
</TABLE>
28
<PAGE> 30
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Aggressive Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO VALUE
-------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSETS -- 100.0%
(Equivalent to $24.21 per share based on 3,199,873 shares of capital stock
outstanding)........................................................................ $77,464,323
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($77,464,323/3,199,873 shares outstanding)............................................ $ 24.21
===========
</TABLE>
* Non-Income Producing.
See accompanying notes to financial statements.
29
<PAGE> 31
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The International Portfolio
2000 Semi-Annual Review
The Boston Company Asset Management, Inc.
--------------------------------------------------------------------------------
The Market Street Fund International Portfolio's total return for the six months
ended June 30, 2000 was -0.4% compared to the -4.1% return for the MSCI EAFE
Index.
The first half of 2000 has provided investors all around the world with little
cause for jubilation. While technology and telecom paused to reassess
valuations, even the consumer decided to reduce spending on discretionary items.
These sectors posted declines ranging from -5.2% to -16.4%. Positive performance
was evident in consumer staples, energy and health care as investors looked
elsewhere for growth. We did see, by the end of the period, a return to value
investing. The impact of our stock selection accounted for virtually the entire
performance premium delivered in the first half.
Telecom and technology weightings in the indices have increased dramatically in
the last five years. From October 1999 to the end of March 2000, we maintained a
half weight, relative to the index, but stock selection more than made up the
difference. Specifically, our 5% weighting in technology returned 113% versus
the index return of 80%. In telecom, our 6.9% weighting's return of 47% nearly
matched the index return of 56%. In the second quarter of this year, we
lightened our weightings further and because of our value discipline, stock
performance was measurably better than the sectors' return. In technology, our
4.8% weighting returned 2.9% versus the sector return, which was down -7.5%.
Similarly, in telecom our 6.4% weighting was only down -13.3% versus the index
which was down -21.5%.
Elsewhere, Japanese stocks performed in line with other major markets as
investors' fret over the possibility of slipping into another recession.
Japanese Prime Minister Yoshiro Mori and his Liberal Democratic Party barely
held on, in recent elections, and seemed unable to offer effective fiscal
solutions. Japanese banks continue to be hamstrung by non-performing loans from
companies that over-expanded during the bubble years and do not appear to be
competitive today. Banks have been asked to forgive some loans and the
government is poised to intervene with public assistance. However, some leading
industry figures are appalled at the notion of debt waivers. The current tension
in Japan has provided excellent opportunities to purchase inexpensive stocks,
which we believe will provide excellent returns.
The Portfolio benefited on a relative basis by being about half-weighted in the
under-performing services sector. Furthermore, this benefit was multiplied by
our stock picking within this arena. This effect is even more dramatic in
financials, which is the largest portion of the portfolio at about 21%. Although
our weighting was about neutral to the benchmark, our holdings provided
out-performance.
We have always believed that a disciplined approach to global value investing
leads to out-performance with less volatility. In such an environment, a
disciplined value approach provides an advantage through careful stock picking.
We look forward to the next six months and the opportunity to continue to
provide you with our disciplined value investment process.
Sandor Cseh, CFA
30
<PAGE> 32
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The International Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCK -- 97.8%
Australia -- 1.6%
*Australia & New Zealand Bank Group Ltd. ................. 149,566 $ 1,150,368
Goodman Fielder Ltd. ..................................... 386,174 287,515
-----------
1,437,883
-----------
Austria -- 0.8%
Bank Austria AG........................................... 14,950 731,163
-----------
Belgium -- 1.0%
*Dexia Belgium............................................ 5,910 875,283
-----------
Brazil -- 0.9%
Petroleo Brasileiro SA ADR................................ 13,500 407,855
Tele Norte Leste Participacoes SA ADR..................... 422 9,970
Telecomunicacoes Brasileiras SA ADR....................... 3,611 350,718
-----------
768,543
-----------
Denmark -- 0.4%
Jyske Bank................................................ 20,950 393,040
-----------
Finland -- 0.5%
Kesko Oyj................................................. 41,000 418,568
-----------
France -- 9.2%
*Alstom SA................................................ 12,315 334,200
Assurances Generales de France............................ 16,198 859,432
Banque Nationale de Paris................................. 13,400 1,294,785
Bongrain.................................................. 1,227 323,217
*Compagnie De Saint Gobain................................ 3,700 502,224
*Dexia Strips............................................. 4,510 --
L'Air Liquide............................................. 7,961 1,042,398
Michelin-(CGDE)........................................... 22,353 720,173
Societe Generale.......................................... 8,072 487,477
Suez Lyonnaise des Eaux................................... 2,400 422,163
*Thomson CSF.............................................. 2,555 101,054
Total Fina SA ADR......................................... 19,261 1,483,097
*Usinor Sacilor........................................... 40,500 496,156
-----------
8,066,376
-----------
</TABLE>
31
<PAGE> 33
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The International Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCK (CONTINUED)
Germany -- 7.5%
Bayer AG.................................................. 29,690 $ 1,161,189
Deutsche Bank AG.......................................... 13,877 1,149,322
Deutsche Lufthansa AG..................................... 30,500 716,306
Merck KGAA................................................ 31,289 968,783
Metallgesellschaft AG..................................... 27,665 383,205
Veba AG................................................... 28,304 1,394,580
Volkswagen AG............................................. 22,450 858,661
-----------
6,632,046
-----------
Greece -- 1.2%
Hellenic Telecommunications............................... 83,755 1,020,764
-----------
Hong Kong -- 1.3%
*Hong Kong Electric....................................... 356,733 1,148,680
-----------
India -- 0.3%
Videsh Sanchar Nigam Ltd. ................................ 15,000 234,375
-----------
Ireland -- 0.8%
*Bank of Ireland.......................................... 107,835 677,587
-----------
Italy -- 5.6%
Banca Popolare di Bergamo Credito Varesino SpA............ 30,800 572,186
Beni Stabili SpA.......................................... 23,512 12,667
ENI SpA................................................... 268,400 1,556,576
*Finmeccanica SpA......................................... 595,000 821,319
Istituto Bancario San Paolo di Torino SpA................. 34,912 622,138
*Telecom Italia SpA....................................... 198,800 1,324,444
-----------
4,909,330
-----------
</TABLE>
32
<PAGE> 34
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The International Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCK (CONTINUED)
Japan -- 26.0%
77 Bank Ltd. ............................................. 95,000 $ 761,426
Aiful Corp. .............................................. 4,500 415,968
Canon, Inc. .............................................. 35,000 1,746,667
Credit Saison Co. ........................................ 65,500 1,522,946
Dai-Tokyo Fire and Marine Insurance....................... 143,000 509,548
Fuji Machine.............................................. 21,000 1,105,561
Honda Motor Co. Ltd. ..................................... 18,000 614,169
*Katokichi................................................ 14,000 355,288
Mabuchi Motors............................................ 9,700 1,256,031
*Marubeni Corp. .......................................... 341,000 1,176,401
Matsumotokiyoshi.......................................... 15,600 1,639,599
Mineba Co. Ltd. .......................................... 90,000 1,131,364
Mitsubishi Heavy Industries Ltd. ......................... 110,000 488,651
Namco Ltd. ............................................... 19,500 704,054
Nichiei................................................... 14,100 231,221
Nippon Express Co. Ltd. .................................. 215,000 1,322,902
Nippon Telegraph & Telephone Corp. ....................... 250 333,171
Nishimatsu Construction................................... 92,000 363,473
Rinnai Corp. ............................................. 36,000 804,714
Rohm Co. Ltd. ............................................ 3,600 1,058,208
Sankyo Company Ltd. ...................................... 25,000 565,918
Sekisui Chemical Co. ..................................... 75,000 289,221
Shin-Etsu Chemical Co. Ltd. .............................. 20,000 1,016,999
*Shohkoh Fund & Co. Ltd. ................................. 1,250 282,368
Sony Corp. ............................................... 6,400 598,857
TDK Corp. ................................................ 8,000 1,152,346
Yamanouchi Pharmaceuticals................................ 25,000 1,368,128
-----------
22,815,199
-----------
Korea -- 0.9%
*Korea Electric Power ADR................................. 26,400 486,750
Pohang Iron & Steel Co. Ltd. ADR.......................... 13,200 316,800
-----------
803,550
-----------
Mexico -- 0.4%
Telefonos de Mexico SA ADR................................ 5,416 309,389
-----------
</TABLE>
33
<PAGE> 35
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The International Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCK (CONTINUED)
Netherlands -- 7.4%
*ABN Amro Holding......................................... 57,540 $ 1,415,334
*Akzo Nobel N.V. ......................................... 18,700 797,690
*Buhrmann N.V. ........................................... 15,943 457,724
*Fortis N.V. ............................................. 40,600 1,186,631
*Hunter Douglas N.V. ..................................... 27,331 742,747
*ING Groep N.V. .......................................... 313 21,243
*Stork N.V. .............................................. 41,069 559,030
*Vedior N.V. ............................................. 43,283 537,303
*Wolters Klumer........................................... 30,301 810,389
-----------
6,528,091
-----------
New Zealand -- 1.1%
Fletcher Challenge Paper.................................. 427,822 491,409
Telecom Corporation of New Zealand Ltd. .................. 134,882 473,043
-----------
964,452
-----------
Norway -- 1.3%
Norsk Hydro............................................... 13,000 547,531
Orkla..................................................... 32,000 610,240
-----------
1,157,771
-----------
Portugal -- 1.1%
Portugal Telecom SA....................................... 82,870 934,194
-----------
Singapore -- 2.2%
Natsteel Electronics Co. ................................. 112,000 343,324
Overseas Chinese Banking Corp. ........................... 151,000 1,039,283
United Overseas Bank Ltd. ................................ 87,544 572,157
-----------
1,954,764
-----------
Spain -- 4.0%
Banco Bilbao Vizcaya SA................................... 43,333 650,078
Banco Popular Espanol SA.................................. 21,900 680,176
Endesa SA................................................. 63,786 1,240,623
Repsol ADR................................................ 48,700 964,869
-----------
3,535,746
-----------
Sweden -- 1.7%
Autoliv, Inc. SDR......................................... 35,200 866,884
Investor AB - B Shares.................................... 46,500 638,859
-----------
1,505,743
-----------
</TABLE>
34
<PAGE> 36
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The International Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCK (CONTINUED)
Switzerland -- 5.4%
*Barry Callebaut AG - Registered Shares................... 4,018 $ 575,740
Forbo Holding AG - Registered Shares...................... 860 359,640
Novartis AG - Registered Shares........................... 915 1,454,033
*Sulzer AG - Registered Shares............................ 830 553,820
Swisscom AG - Registered Shares........................... 1,750 608,061
United Bank of Switzerland - Registered Shares............ 8,340 1,225,814
-----------
4,777,108
-----------
United Kingdom -- 15.2%
*Barclays Plc............................................. 25,911 644,494
*BOC Group Plc............................................ 45,060 648,055
British Aerospace Plc..................................... 175,830 1,096,699
Bunzl Plc................................................. 213,599 1,144,721
*Enterprise Oil Plc....................................... 21,400 178,510
Laird Group Ordinary...................................... 100,000 367,121
Morgan Crucible Co. Plc................................... 206,657 680,466
*Powergen UK Plc.......................................... 113,245 968,645
Rexam Plc................................................. 209,300 814,328
*Rio Tinto Plc............................................ 53,899 881,255
*Royal & Sun Alliance Insurance Group..................... 194,465 1,262,978
*Royal Bank of Scotland Group Plc......................... 53,777 900,428
Safeway Plc............................................... 169,844 660,816
*Scottish and Southern Energy Plc......................... 65,500 600,912
*Tomkins Plc.............................................. 185,930 604,477
Unilever Plc.............................................. 196,500 1,189,925
Wolseley Plc.............................................. 130,200 699,740
-----------
13,343,570
-----------
TOTAL COMMON AND PREFERRED STOCK (COST $78,553,195)..... 85,943,215
-----------
SHORT TERM INVESTMENTS -- 0.5%
Provident Institutional Funds -- TempCash................. 418,548 418,548
-----------
TOTAL SHORT TERM INVESTMENTS (COST $418,548)............ 418,548
-----------
TOTAL INVESTMENTS -- 98.3% (COST $78,971,743)........... 86,361,763
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.7%............... 1,459,467
-----------
</TABLE>
35
<PAGE> 37
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The International Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO VALUE
----------------------------------------------------------------------------------------
<S> <C>
NET ASSETS -- 100.0%
(Equivalent to $14.48 per share based on 6,066,220 shares of capital
stock outstanding)................................................... $87,821,230
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($87,821,230/6,066,220 shares outstanding)............................. $ 14.48
===========
</TABLE>
* Non-Income producing.
See accompanying notes to financial statements.
36
<PAGE> 38
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Sentinel Growth Portfolio
2000 Semi-Annual Review
Sentinel Advisors Company
--------------------------------------------------------------------------------
The Market Street Fund Sentinel Growth Portfolio earned a total return of 23.8%
for the six months ended June 30, 2000. Over the same period, the S&P 500 Index
produced a -0.4%.
The strong results for the Portfolio during the latest six-month period were due
to the timely shifts in sector weightings and excellent stock selection. The
Portfolio started the year with an overweighted position in technology and
biotechnology stocks. Those two sectors led the market higher during the first
two months of the year. We reduced our exposure to high multiple stocks in
March, and, as a result, the Portfolio performed well in spite of a sharp
sell-off in technology stocks. We increased our weightings in technology and
biotech stocks in late May, which allowed the portfolio to participate in the
market rally that began in May.
Our strategy continues to emphasize market-dominant companies with defensible
"franchises" in growth industries. These companies usually possess proprietary
technology, dominant brand names, and superior products. Typically, our largest
sector weightings are in the fastest growing areas of the market, such as
technology, healthcare and consumer growth stocks.
Robert L. Lee, CFA
37
<PAGE> 39
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Sentinel Growth Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 97.5%
Banks -- 0.9%
Bank of New York Co., Inc. ............................... 4,100 $ 190,650
-----------
Business & Consumer Services -- 3.4%
*Administaff, Inc. ....................................... 6,900 438,150
*Convergys Corp. ......................................... 5,500 285,312
-----------
723,462
-----------
Chemicals & Allied Products -- 1.2%
Cambrex Corp. ............................................ 5,700 256,500
-----------
Communications -- 8.5%
*Nextlink Communications, Inc. ........................... 9,300 352,819
Nortel Networks Corp. .................................... 6,000 409,500
Scientific-Atlanta, Inc. ................................. 3,300 245,850
*Sonus Networks, Inc. .................................... 2,900 457,838
*Tekelec, Inc. ........................................... 4,700 226,481
*WinStar Communications, Inc. ............................ 2,500 84,687
-----------
1,777,175
-----------
Computer Peripherals -- 0.3%
*Storage Networks......................................... 600 54,150
-----------
Computers -- 17.0%
*Black Box Corp. ......................................... 4,100 324,605
*Brocade Communications Systems, Inc. .................... 2,000 366,969
*Cisco Systems, Inc. ..................................... 6,300 400,444
*EMC Corp. ............................................... 4,600 353,912
*Extreme Networks, Inc. .................................. 2,700 284,850
*Juniper Networks, Inc. .................................. 3,800 553,137
*Siebel Systems, Inc. .................................... 1,600 261,700
*Silicon Storage Technology, Inc. ........................ 4,100 362,081
*Sun Microsystems, Inc. .................................. 3,500 318,281
*Veritas Software Corp. .................................. 3,000 339,047
-----------
3,565,026
-----------
</TABLE>
38
<PAGE> 40
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Sentinel Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Drugs & Health Care -- 18.6%
*Barr Laboratories, Inc. ................................. 7,500 $ 336,094
*Chiron Corp. ............................................ 4,100 194,750
*Elan Corp. Plc ADR....................................... 3,000 145,312
*Forest Laboratories, Inc. ............................... 2,700 272,700
*Human Genome Sciences, Inc. ............................. 3,800 506,825
*Incyte Pharmaceuticals, Inc. ............................ 3,200 263,000
*Medicis Pharmaceutical Corp., Class A.................... 5,500 313,500
*Millennium Pharmaceuticals, Inc. ........................ 5,500 615,312
*Myriad Genetics, Inc. ................................... 5,100 755,198
Pfizer, Inc. ............................................. 4,200 201,600
*Watson Pharmaceuticals, Inc. ............................ 5,500 295,625
-----------
3,899,916
-----------
Electronic Instruments -- 2.8%
*Analog Devices, Inc. .................................... 4,300 326,800
*Micrel, Inc. ............................................ 6,000 260,625
-----------
587,425
-----------
Electronics -- 5.0%
*Cable Design Technologies, Inc. ......................... 3,900 130,650
*Cree Research, Inc. ..................................... 1,300 173,550
*JDS Uniphase Corp. ...................................... 3,700 443,537
Linear Technology Corp. .................................. 4,700 300,506
-----------
1,048,243
-----------
Entertainment -- 0.4%
*Walt Disney Co. ......................................... 2,100 81,506
-----------
Finance -- 0.5%
Citigroup, Inc. .......................................... 1,900 114,475
-----------
Finance - Investment & Other -- 0.9%
Waddell & Reed Financial, Inc. Class B.................... 6,850 199,078
-----------
Food & Food Distributors -- 1.0%
*Starbucks Corp. ......................................... 5,900 225,306
-----------
Industrial & Commercial Services -- 2.7%
*Plexus Corp. ............................................ 5,000 565,000
-----------
</TABLE>
39
<PAGE> 41
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Sentinel Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Insurance -- 3.4%
American International Group, Inc. ....................... 1,700 $ 199,750
HSB Group, Inc. .......................................... 4,600 143,175
Marsh & McLennan Cos., Inc. .............................. 3,500 365,531
-----------
708,456
-----------
Medical & Medical Services -- 1.7%
*Genzyme Corp. ........................................... 6,100 362,569
-----------
Oil & Gas -- 5.8%
Burlington Resources, Inc. ............................... 3,400 130,050
*Cal Dive International, Inc. ............................ 7,700 417,244
EOG Resources, Inc. ...................................... 7,900 264,650
*Global Marine, Inc. ..................................... 3,400 95,838
*Ocean Energy, Inc. ...................................... 10,300 146,131
Santa Fe International Corp. ............................. 4,400 153,725
-----------
1,207,638
-----------
Oil Equipment & Services -- 0.8%
*Smith International, Inc. ............................... 2,200 160,188
-----------
Retail Merchandising -- 1.4%
*Bed, Bath & Beyond, Inc. ................................ 3,300 119,625
*Best Buy Co., Inc. ...................................... 1,900 120,175
Wal-Mart Stores, Inc. .................................... 1,000 57,625
-----------
297,425
-----------
Semiconductors -- 13.8%
*Alpha Industries, Inc. .................................. 5,200 229,125
*Applied Materials, Inc. ................................. 3,600 326,250
*Broadcom Corp., Class A.................................. 2,000 437,875
*C-Cube Microsystems, Inc. ............................... 9,200 180,550
Dallas Semiconductor Corp. ............................... 8,300 338,225
Intel Corp. .............................................. 2,300 307,481
*KLA-Tencor Corp. ........................................ 2,300 134,694
*Marvell Technology Group Ltd. ........................... 600 34,200
*Micron Technology, Inc. ................................. 3,400 299,413
*Novellus Systems, Inc. .................................. 4,200 237,563
*Vitesse Semiconductors Corp. ............................ 5,100 375,169
-----------
2,900,545
-----------
</TABLE>
40
<PAGE> 42
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Sentinel Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Software -- 6.1%
*Ariba, Inc. ............................................. 1,900 $ 186,289
*DoubleClick, Inc. ....................................... 1,300 49,563
*Inktomi Corp. ........................................... 2,900 342,925
*Oracle Corp. ............................................ 4,600 386,688
*Wind River Systems, Inc. ................................ 8,200 310,575
-----------
1,276,040
-----------
Transportation -- 1.3%
Robinson (C.H.) Worldwide, Inc. .......................... 5,500 272,250
-----------
TOTAL COMMON STOCK (COST $16,493,381)................... 20,473,023
-----------
SHORT TERM INVESTMENTS -- 3.8%
Provident Institutional Funds -- TempCash................. 788,042 788,042
-----------
TOTAL SHORT TERM INVESTMENTS (COST $788,042)............ 788,042
-----------
TOTAL INVESTMENTS -- 101.3% (COST $17,281,423).......... 21,261,065
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.3%)............. (268,435)
-----------
NET ASSETS -- 100.0%
(Equivalent to $20.29 per share based on 1,034,857 shares
of capital stock outstanding)........................... $20,992,630
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($20,992,630/1,034,857 shares outstanding)................ $ 20.29
===========
</TABLE>
*Non-Income Producing.
See accompanying notes to financial statements.
41
<PAGE> 43
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
2000 Semi-Annual Review
Market Street Investment Management Company
--------------------------------------------------------------------------------
State Street Global Advisors began to manage the portfolio as a sub-adviser on
February 7, 2000. The performance of this large and important portfolio has
matched expectations. After fees, the portfolio returned 2.40% (from inception
through June 30) versus 2.62% over the same period for the S&P 500 Index.
Clearly the equity markets for the first half of 2000 were disappointing after
five calendar years of annual returns in excess of 20% for the S&P 500 Index.
For the six months ended June 30 the S&P 500 Index declined 0.40%. First half
returns for the Wilshire 5000, a measure of the broad market, was also modestly
negative.
During the first two and a half months of this year, the market continued its
strong run from the end of 1999. The market environment was more favorable to
the large cap growth investment style and both the S&P 500 Index and the
portfolio returned 5.4% from the February inception date through March 31. The
second quarter witnessed a reversal in performance. Stocks began to decline in
mid March through May as investors focused on the tightening monetary actions of
the Federal Reserve. The more defensive value indices moved higher in April and
May as investors fled the higher price/earnings large cap stocks that comprise
the S&P 500 Index. Late in June, however, large cap growth stocks rebounded,
with the market focused on earnings and not the Federal Reserve. This rebound
could not offset the price declines experienced in April and May.
The largest sector holdings of the portfolio include:
<TABLE>
<CAPTION>
SECTOR %
------ -----
<S> <C>
Computers................................................... 11.6%
Communications.............................................. 11.5%
Drugs and Health Care....................................... 10.0%
Electronics................................................. 6.9%
Software.................................................... 5.8%
Semiconductors.............................................. 5.3%
Finance..................................................... 5.3%
</TABLE>
The portfolio exhibits the same general index characteristics as the overall S&P
500 Index e.g. same price/earnings multiple, price/book multiple, yield,
weighted average capitalization, and the five year historic and projected return
on equity growth rates. During the second half of 2000 we expect the portfolio
will continue to demonstrate performance similar to its benchmark. As we enter
the third quarter, there appears to be a growing consensus that we are near the
end of Federal Reserve actions. Volatility, however, will continue to be part of
this market.
We look forward to your continued support.
Sarah C. Lange, CFA
President
42
<PAGE> 44
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 98.0%
Aerospace & Defense -- 0.8%
Boeing Co. ............................................... 27,200 $ 1,137,300
General Dynamics Corp. ................................... 6,300 329,175
Goodrich (B.F.) Co. ...................................... 3,000 102,187
Lockheed Martin Corp. .................................... 12,100 300,231
Northrop Grumman Holdings Corp. .......................... 2,200 145,750
Raytheon Co., Class B..................................... 10,500 202,125
United Technologies Corp. ................................ 14,600 859,575
------------
3,076,343
------------
Airlines -- 0.2%
*AMR Corp. ................................................ 4,600 121,612
Delta Air Lines, Inc. .................................... 3,800 192,137
Southwest Airlines Co. ................................... 14,800 280,275
*US Airways Group, Inc. ................................... 2,100 81,900
------------
675,924
------------
Apparel -- 0.1%
Liz Claiborne, Inc. ...................................... 1,400 49,350
Nike, Inc. Class B........................................ 8,200 326,462
*Reebok International Ltd. ................................ 1,700 27,094
Russell Corp. ............................................ 1,100 22,000
Springs Industries, Inc. Class A.......................... 600 19,312
VF Corp. ................................................. 3,600 86,175
------------
530,393
------------
Appliances -- 0.0%
Black & Decker Corp. ..................................... 2,700 106,144
------------
Automobiles -- 0.6%
Ford Motor Co. ........................................... 37,600 1,616,800
General Motors Corp. ..................................... 16,352 949,431
------------
2,566,231
------------
</TABLE>
43
<PAGE> 45
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Automotive & Equipment -- 0.3%
*Autozone, Inc. ........................................... 4,300 $ 94,600
Cooper Tire & Rubber Co. ................................. 2,500 27,812
Dana Corp. ............................................... 4,200 88,987
Delphi Automotive Systems Corp. .......................... 16,800 246,750
*General Motors Corp., Class H............................. 264 23,177
Genuine Parts Co. ........................................ 5,400 108,000
Goodyear Tire & Rubber Co. ............................... 4,800 96,000
Harley-Davidson, Inc. .................................... 9,400 361,900
*Navistar International Corp. ............................. 2,000 62,125
T.R.W., Inc. ............................................. 3,800 164,825
*Visteon Corp. ............................................ 4,923 59,692
------------
1,333,868
------------
Banks -- 3.7%
AmSouth Bancorp. ......................................... 12,200 192,150
Bank of America Corp. .................................... 51,600 2,218,800
Bank of New York Co., Inc. ............................... 23,000 1,069,500
Bank One Corp. ........................................... 35,700 948,281
BB&T Corp. ............................................... 10,900 260,237
Chase Manhattan Corp. .................................... 38,500 1,773,406
Comerica, Inc. ........................................... 4,900 219,887
Fifth Third Bancorp....................................... 9,600 607,200
First Union Corp. ........................................ 30,500 756,781
Firstar Corp. ............................................ 30,300 638,194
Huntington Bancshares, Inc. .............................. 7,100 112,269
Keycorp. ................................................. 12,900 227,362
Mellon Financial Corp. ................................... 15,300 557,494
Morgan (J.P.) & Co., Inc. ................................ 5,000 550,625
National City Corp. ...................................... 18,900 322,481
Northern Trust Corp. ..................................... 6,900 448,931
Old Kent Financial Corp. ................................. 4,305 115,159
PNC Financial Services Group.............................. 8,800 412,500
Regions Financial Corp. .................................. 6,900 137,137
Southtrust Corp. ......................................... 5,300 119,912
Summit Bancorp. .......................................... 5,600 137,900
Suntrust Banks, Inc. ..................................... 9,400 429,462
U.S. Bancorp.............................................. 23,400 450,450
Union Planters Corp. ..................................... 3,800 106,162
Wells Fargo Co. .......................................... 50,100 1,941,375
------------
14,753,655
------------
</TABLE>
44
<PAGE> 46
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Beverages -- 2.2%
Anheuser-Busch Companies, Inc. ........................... 14,100 $ 1,053,094
Brown-Forman Corp. Class B................................ 2,100 112,875
Coca-Cola Co. ............................................ 76,900 4,416,944
Coca-Cola Enterprises, Inc. .............................. 13,300 216,956
Coors Adolph Co. Class B.................................. 1,100 66,550
Pepsico, Inc. ............................................ 44,800 1,990,800
Seagram Co. Ltd. ......................................... 13,600 788,800
------------
8,646,019
------------
Broadcasting & Publishing -- 2.6%
American Greetings Corp. Class A.......................... 2,000 38,000
*Clear Channel Communications, Inc. ....................... 10,600 795,000
Donnelley (R.R.) & Sons Co. .............................. 4,000 90,250
Dow Jones & Co., Inc. .................................... 2,800 205,100
Gannett, Inc. ............................................ 8,300 496,444
Harcourt General, Inc. ................................... 2,200 119,625
Knight-Ridder, Inc. ...................................... 2,400 127,650
McGraw-Hill, Inc. ........................................ 6,100 329,400
*MediaOne Group, Inc. ..................................... 19,000 1,259,961
Meredith Corp. ........................................... 1,600 54,000
New York Times Co. ....................................... 5,200 205,400
Time Warner, Inc. ........................................ 40,900 3,108,400
Times Mirror Co. ......................................... 1,900 172,187
Tribune Co. .............................................. 7,400 259,000
*Viacom, Inc. - Class B.................................... 47,489 3,238,156
------------
10,498,573
------------
Building & Building Supplies -- 0.3%
Centex Corp. ............................................. 1,800 42,300
Ecolab, Inc. ............................................. 4,100 160,156
Lowe's Cos., Inc. ........................................ 12,000 492,750
Masco Corp. .............................................. 13,900 251,069
Pulte Corp. .............................................. 1,200 25,950
Owens Corning, Inc. ...................................... 1,700 15,725
Vulcan Materials Co. ..................................... 3,100 132,331
------------
1,120,281
------------
</TABLE>
45
<PAGE> 47
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Business & Consumer Services -- 2.3%
*America Online, Inc. ..................................... 71,000 $ 3,745,250
Automatic Data Processing, Inc. .......................... 19,300 1,033,756
*Cendant Corp. ............................................ 22,200 310,800
*Convergys Corp. .......................................... 4,800 249,000
Deluxe Corp. ............................................. 2,400 56,550
Dun & Bradstreet Corp. ................................... 5,000 143,125
Electronic Data Systems Corp. ............................ 14,600 602,250
Interpublic Group of Cos., Inc. .......................... 8,800 378,400
Omnicom Group, Inc. ...................................... 5,500 489,844
Shared Medical Systems Corp. ............................. 800 58,350
*Yahoo!, Inc. ............................................. 16,900 2,093,487
------------
9,160,812
------------
Business Equipment -- 0.1%
*Lexmark International Group, Inc. Class A................. 4,000 269,000
------------
Chemicals & Allied Products -- 1.4%
Air Products & Chemicals, Inc. ........................... 7,200 221,850
Ashland, Inc. ............................................ 2,200 77,137
Dow Chemical Co. ......................................... 20,400 615,825
Du Pont (E.I.) de Nemours & Co. .......................... 32,500 1,421,875
Eastman Chemical Co. ..................................... 2,400 114,600
Engelhard Corp. .......................................... 3,900 66,544
*F.M.C. Corp. ............................................. 1,000 58,000
*Grace (W.R.) & Co. ....................................... 2,200 26,675
Great Lakes Chemical Corp. ............................... 1,800 56,700
Hercules, Inc. ........................................... 3,200 45,000
Pharmacia Corp. .......................................... 38,878 2,009,507
Praxair, Inc. ............................................ 4,900 183,444
Rohm & Haas Co. .......................................... 6,800 234,600
Sigma Aldrich Corp. ...................................... 2,700 78,975
Union Carbide Corp. ...................................... 4,200 207,900
------------
5,418,632
------------
</TABLE>
46
<PAGE> 48
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Communications -- 11.5%
*ADC Telecommunications, Inc. ............................. 10,500 $ 880,687
ALLTEL Corp. ............................................. 9,800 606,987
*Andrew Corp. ............................................. 2,600 87,262
AT&T Corp. ............................................... 99,500 3,146,687
Bell Atlantic Corp. ...................................... 48,100 2,444,081
BellSouth Corp. .......................................... 58,600 2,497,825
CenturyTel, Inc. ......................................... 4,300 123,625
*Comcast Corp. Special Class............................... 27,900 1,129,950
*Comverse Technology, Inc. ................................ 4,800 446,400
Corning Glass, Inc. ...................................... 8,600 2,320,925
*Global Crossing Ltd. ..................................... 25,900 681,494
GTE Corp. ................................................ 30,000 1,867,500
Lucent Technologies, Inc. ................................ 101,300 6,002,025
*Nextel Communications, Inc. Class A....................... 23,600 1,444,025
Nortel Networks Corp. .................................... 92,600 6,319,950
*Qualcomm, Inc. ........................................... 23,000 1,380,000
SBC Communications, Inc. ................................. 105,800 4,575,850
Scientific-Atlanta, Inc. ................................. 4,900 365,050
Sprint Corp. ............................................. 27,100 1,382,100
*Sprint Corp. (PCS Group).................................. 28,500 1,695,750
*Tellabs, Inc. ............................................ 12,600 862,312
US West, Inc. ............................................ 15,800 1,354,850
*Worldcom, Inc. ........................................... 88,400 4,055,350
Young & Rubicam, Inc. .................................... 2,200 125,812
------------
45,796,497
------------
</TABLE>
47
<PAGE> 49
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Computers -- 11.6%
*3Com Corp. ............................................... 10,800 $ 622,350
*Adaptec, Inc. ............................................ 3,200 72,800
*Apple Computer, Inc. ..................................... 10,000 523,750
*Cabletron Systems, Inc. .................................. 5,700 143,925
*Ceridian Corp. ........................................... 4,500 108,281
*Cisco Systems, Inc. ...................................... 216,400 13,754,925
Compaq Computer Corp. .................................... 52,900 1,352,256
*Computer Sciences Corp. .................................. 5,200 388,375
*Dell Computer Corp. ...................................... 80,000 3,945,000
*EMC Corp. ................................................ 67,500 5,193,281
*Gateway, Inc. ............................................ 9,900 561,825
Hewlett Packard Co. ...................................... 31,100 3,883,612
International Business Machines Corp. .................... 55,200 6,047,850
*Maxim Integrated Products, Inc. .......................... 8,600 584,262
*NCR Corp. ................................................ 2,700 105,131
*Network Appliance, Inc. .................................. 9,500 764,750
Pitney Bowes, Inc. ....................................... 7,700 308,000
*Sapient Corp. ............................................ 1,800 192,487
*Seagate Technology, Inc. ................................. 7,100 390,500
*Siebel Systems, Inc. ..................................... 6,000 981,375
*Sun Microsystems, Inc. ................................... 49,200 4,474,125
*Unisys Corp. ............................................. 9,600 139,800
*Veritas Software Corp. ................................... 12,100 1,367,489
------------
45,906,149
------------
Conglomerates -- 0.0%
Armstrong Holdings, Inc. ................................. 1,200 18,375
Kaufman & Broad Home Corp. ............................... 1,500 29,719
------------
48,094
------------
</TABLE>
48
<PAGE> 50
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Consumer Products -- 1.2%
Briggs & Stratton Corp. .................................. 700 $ 23,975
Clorox Co. ............................................... 7,300 327,131
Fortune Brands, Inc. ..................................... 5,100 117,619
Grainger (W.W.), Inc. .................................... 2,900 89,356
Ingersoll Rand Co. ....................................... 5,100 205,275
Kimberly-Clark Corp. ..................................... 17,300 992,587
Maytag Corp. ............................................. 2,100 77,437
Newell Rubbermaid, Inc. .................................. 8,300 213,725
Paccar, Inc. ............................................. 2,500 99,219
Pall Corp. ............................................... 3,700 69,837
Procter & Gamble Co. ..................................... 40,700 2,330,075
Stanley Works, Inc. ...................................... 2,700 64,125
Timken Co. ............................................... 1,900 35,387
Tupperware Corp. ......................................... 1,700 37,400
Whirlpool Corp. .......................................... 2,300 107,237
------------
4,790,385
------------
Containers -- 0.1%
Ball Corp. ............................................... 900 28,969
Bemis Co., Inc. .......................................... 1,600 53,800
Crown Cork & Seal Co., Inc. .............................. 4,000 60,000
*Owens-Illinois, Inc. ..................................... 4,500 52,594
*Pactiv Corp. ............................................. 5,400 42,525
*Sealed Air Corp. ......................................... 2,600 136,175
------------
374,063
------------
Cosmetics and Toiletries -- 0.4%
Alberto-Culver Co. Class B................................ 1,700 51,956
Avon Products, Inc. ...................................... 7,100 315,950
Gillette Co. ............................................. 32,500 1,135,469
International Flavors & Fragrances, Inc. ................. 3,300 99,619
------------
1,602,994
------------
</TABLE>
49
<PAGE> 51
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Drugs & Health Care -- 10.0%
Abbott Laboratories....................................... 47,900 $ 2,134,544
Aetna, Inc. .............................................. 4,200 269,587
Allergan, Inc. ........................................... 4,100 305,450
*Alza Corp. ............................................... 3,200 189,200
American Home Products Corp. ............................. 40,600 2,385,250
Bausch & Lomb, Inc. ...................................... 1,600 123,800
*Baxter International, Inc. ............................... 9,100 639,844
Becton, Dickinson & Co. .................................. 7,800 223,762
Bristol-Myers Squibb Co. ................................. 61,400 3,576,550
Cardinal Health, Inc. .................................... 8,400 621,600
Colgate-Palmolive Co. .................................... 17,800 1,065,775
CVS Corp. ................................................ 11,800 472,000
Eli Lilly & Co. .......................................... 35,100 3,505,612
HCA - The Healthcare Co. ................................ 17,500 531,562
*Healthsouth Corp. ........................................ 12,200 87,687
*Humana, Inc. ............................................. 5,000 26,562
IMS Health, Inc. ......................................... 8,600 154,800
Johnson & Johnson......................................... 43,300 4,411,187
McKesson HBOC, Inc. ...................................... 8,800 184,250
*Medimmune, Inc. .......................................... 6,300 466,200
Merck & Co., Inc. ........................................ 71,500 5,478,687
Pfizer, Inc. ............................................. 195,725 9,394,800
*Quintiles Transnational Corp. ............................ 3,600 50,850
Schering Plough Corp. .................................... 45,700 2,307,850
Tenet Healthcare Corp. ................................... 9,700 261,900
Unitedhealth Group, Inc. ................................. 5,100 437,325
*Watson Pharmaceuticals, Inc. ............................. 3,000 161,250
*Wellpoint Health Networks, Inc. .......................... 2,000 144,875
------------
39,612,759
------------
Electronic Instruments -- 0.3%
*Analog Devices, Inc. ..................................... 10,900 828,400
*Conexant Systems, Inc. ................................... 6,700 325,787
------------
1,154,187
------------
</TABLE>
50
<PAGE> 52
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Electronics -- 6.9%
*Advanced Micro Devices, Inc. ............................. 4,600 $ 355,350
*Agilent Technologies, Inc. ............................... 14,037 1,035,229
Emerson Electric Co. ..................................... 13,300 802,987
General Electric Co. ..................................... 307,800 15,697,800
Johnson Controls, Inc. ................................... 2,700 138,544
Linear Technology Corp. .................................. 9,700 620,194
Molex, Inc. .............................................. 6,125 294,766
Motorola, Inc. ........................................... 66,300 1,926,844
PerkinElmer, Inc. ........................................ 1,500 99,187
Radioshack Corp. ......................................... 5,500 260,562
Rockwell International Corp. ............................. 5,900 185,850
*Sanmina Corp. ............................................ 4,100 350,550
*Solectron Corp. .......................................... 18,400 770,500
*Tektronix, Inc. .......................................... 1,400 101,850
*Teradyne, Inc. ........................................... 5,300 389,550
Texas Instruments, Inc. .................................. 50,600 3,475,587
Thomas & Betts Corp. ..................................... 1,700 32,512
*Xilinx, Inc. ............................................. 10,000 825,625
------------
27,363,487
------------
Energy -- 2.1%
*AES Corp. ................................................ 13,300 606,812
*American Power Conversion Corp. .......................... 6,000 244,875
Baker Hughes, Inc. ....................................... 10,200 326,400
Chevron Corp. ............................................ 20,300 1,721,694
DTE Energy Co. ........................................... 4,500 137,531
Eastern Enterprises....................................... 900 56,700
FPL Group, Inc. .......................................... 5,500 272,250
New Century Energies, Inc. ............................... 3,600 110,475
Royal Dutch Petroleum Co. ................................ 66,800 4,112,375
Williams Cos., Inc. ...................................... 13,600 566,950
------------
8,156,062
------------
Entertainment -- 0.6%
*Walt Disney Co. .......................................... 64,400 2,499,525
------------
</TABLE>
51
<PAGE> 53
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Finance -- 5.3%
American Express Co. ..................................... 41,600 $ 2,168,400
Associates First Capital Corp. Class A.................... 22,800 508,725
Bear Stearns Companies, Inc. ............................. 3,500 145,687
Capital One Financial Corp. .............................. 6,200 276,675
Citigroup, Inc. .......................................... 105,000 6,326,250
Countrywide Credit Industries, Inc. ...................... 3,500 106,094
Equifax, Inc. ............................................ 4,300 113,144
First Data Corp. ......................................... 12,800 635,200
FleetBoston Financial Corp. .............................. 28,000 952,000
Franklin Resources, Inc. ................................. 7,200 218,700
Golden West Financial Corp. .............................. 4,600 187,737
H & R Block, Inc. ........................................ 3,200 103,600
Hartford Financial Services, Inc. ........................ 6,700 374,781
Household International, Inc. ............................ 14,600 606,812
Lehman Brothers Holdings, Inc. ........................... 3,800 359,337
MBNA Corp. ............................................... 24,500 664,562
Merrill Lynch & Co., Inc. ................................ 12,100 1,391,500
Morgan Stanley Dean Witter & Co. ......................... 35,200 2,930,400
PaineWebber Group, Inc. .................................. 4,500 204,750
Paychex, Inc. ............................................ 11,550 485,100
Price (T. Rowe) Associates, Inc. ......................... 3,800 161,500
Providian Financial Corp. ................................ 4,400 396,000
SLM Holding Corp. ........................................ 4,900 183,444
State Street Corp. ....................................... 5,000 530,312
Synovus Financial Corp. .................................. 8,700 153,337
Wachovia Corp. ........................................... 6,300 341,775
Washington Mutual, Inc. .................................. 17,000 490,875
------------
21,016,697
------------
Finance - Investment & Other -- 1.0%
Charles Schwab Corp. ..................................... 41,250 1,387,031
*Charter One Financial, Inc. .............................. 6,700 154,100
Fannie Mae................................................ 31,300 1,633,469
Freddie Mac............................................... 21,400 866,700
------------
4,041,300
------------
</TABLE>
52
<PAGE> 54
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Food & Food Distributors -- 1.8%
Archer-Daniels Midland Co. ............................... 18,900 $ 185,456
Bestfoods, Inc. .......................................... 8,500 588,625
Campbell Soup Co. ........................................ 13,300 387,362
ConAgra, Inc. ............................................ 15,400 293,563
General Mills, Inc. ...................................... 9,100 348,075
Heinz (H.J.) Co. ......................................... 10,900 476,875
Hershey Foods Corp. ...................................... 4,300 209,356
Kellogg Co. .............................................. 12,700 377,825
*Kroger Co. ............................................... 26,200 578,038
Nabisco Group Holdings Corp. ............................. 10,200 264,563
Quaker Oats Co. .......................................... 3,900 292,988
Ralston Purina Group...................................... 9,500 189,406
*Safeway, Inc. ............................................ 15,400 694,925
Sara Lee Corp. ........................................... 27,100 523,369
Supervalu, Inc. .......................................... 3,500 66,719
*Starbucks Corp. .......................................... 5,800 221,488
Sysco Corp. .............................................. 10,400 438,100
Unilever N.V. ............................................ 17,700 761,100
Wrigley (Wm.) Jr., Co. ................................... 3,600 288,675
------------
7,186,508
------------
Home Furnishings/Housewares -- 0.0%
Leggett & Platt, Inc. .................................... 6,100 100,650
------------
Hotel/Restaurants -- 0.1%
Hilton Hotels Corp. ...................................... 11,600 108,750
Marriott International, Inc. Class A...................... 7,500 270,469
------------
379,219
------------
Industrial Diversified -- 0.1%
Fluor Corp. .............................................. 2,300 72,738
Parker-Hannifin Corp. .................................... 3,500 119,875
Sherwin Williams Co. ..................................... 5,200 110,175
------------
302,788
------------
</TABLE>
53
<PAGE> 55
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Insurance -- 2.7%
AFLAC, Inc. .............................................. 8,000 $ 367,500
Allstate Corp. ........................................... 23,200 516,200
American General Corp. ................................... 7,700 469,700
American International Group, Inc. ....................... 48,000 5,640,000
Aon Corp. ................................................ 8,000 248,500
Chubb Corp. .............................................. 5,400 332,100
Cigna Corp. .............................................. 5,100 476,850
Cincinnati Financial Corp. ............................... 5,100 160,331
Conseco, Inc. ............................................ 9,900 96,525
Jefferson-Pilot Corp. .................................... 3,000 169,313
Lincoln National Corp. ................................... 6,100 220,363
Loews Corp. .............................................. 3,100 186,000
Marsh & McLennan Cos., Inc. .............................. 8,300 866,831
MBIA, Inc. ............................................... 3,100 149,381
MGIC Investment Corp. .................................... 3,300 150,150
Progressive Corp. ........................................ 2,300 170,344
Safeco Corp. ............................................. 4,000 79,500
St. Paul Companies, Inc. ................................. 6,600 225,225
Torchmark Corp. .......................................... 4,000 98,750
UnumProvident Corp. ...................................... 7,500 150,469
------------
10,774,032
------------
Leisure & Amusements -- 0.2%
Brunswick Corp. .......................................... 2,800 46,375
Carnival Corp., Class A................................... 18,300 356,850
*Harrah's Entertainment, Inc. ............................. 4,000 83,750
Mattel, Inc. ............................................. 13,200 174,075
------------
661,050
------------
Machinery & Heavy Equipment -- 0.2%
Caterpillar, Inc. ........................................ 10,500 355,688
Deere & Co. .............................................. 7,300 270,100
Dover Corp. .............................................. 6,400 259,600
McDermott International, Inc. ............................ 1,700 14,981
------------
900,369
------------
Machinery & Instrumentation -- 0.0%
Snap-On, Inc. ............................................ 1,900 53,675
------------
</TABLE>
54
<PAGE> 56
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Manufacturing -- 1.6%
Alcan Aluminium Ltd. ..................................... 6,900 $ 213,900
Alcoa, Inc. .............................................. 26,840 778,360
Allegheny Technologies, Inc. ............................. 2,800 50,400
Cooper Industries, Inc. .................................. 2,900 94,431
Crane Co. ................................................ 1,400 34,038
Cummins Engine Co., Inc. ................................. 1,300 35,425
Danaher Corp. ............................................ 4,400 217,525
Eaton Corp. .............................................. 2,300 154,100
Honeywell International, Inc. ............................ 24,700 832,081
Millipore Corp. .......................................... 1,400 105,525
Minnesota Mining & Manufacturing Co. ..................... 12,200 1,006,500
National Service Industries, Inc. ........................ 1,400 27,300
PPG Industries, Inc. ..................................... 5,400 239,288
Textron, Inc. ............................................ 4,300 233,544
Tyco International Ltd. .................................. 52,500 2,487,188
------------
6,509,605
------------
Manufacturing Equipment -- 0.2%
Illinois Tool Works, Inc. ................................ 9,400 535,800
ITT Industries, Inc. ..................................... 2,700 82,013
*Thermo Electron Corp. .................................... 4,900 103,513
------------
721,326
------------
Medical & Medical Services -- 0.6%
*Amgen Corp. .............................................. 31,800 2,233,950
*Biogen, Inc. ............................................. 4,700 303,150
*Manor Care, Inc. ......................................... 3,200 22,400
------------
2,559,500
------------
Medical Equipment & Supplies -- 0.7%
Bard (C.R.), Inc. ........................................ 1,600 77,000
*Guidant Corp. ............................................ 9,600 475,200
Mallinckrodt, Inc. ....................................... 2,100 91,219
Medtronic, Inc. .......................................... 37,100 1,848,044
PE Corp. - PE Biosystems Group............................ 6,500 428,188
------------
2,919,651
------------
</TABLE>
55
<PAGE> 57
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Medical Instruments -- 0.1%
Biomet, Inc. ............................................. 3,600 $ 138,375
*Boston Scientific Corp. .................................. 12,200 267,638
*St. Jude Medical, Inc. ................................... 2,600 119,275
------------
525,288
------------
Metals & Mining -- 0.2%
Barrick Gold Corp. ....................................... 12,300 223,706
*Freeport-McMoran Copper & Gold, Inc. ..................... 5,100 47,175
*Homestake Mining Co. ..................................... 8,100 55,688
*Inco Ltd. ................................................ 4,900 75,338
Newmont Mining Corp. ..................................... 5,400 116,775
Phelps Dodge Corp. ....................................... 2,500 92,969
Placer Dome, Inc. ........................................ 10,700 102,319
Worthington Industries, Inc. ............................. 2,700 28,350
------------
742,320
------------
Office Equipment & Supplies -- 0.2%
Avery-Dennison Corp. ..................................... 3,500 234,938
*Staples, Inc. ............................................ 14,600 224,475
Xerox Corp. .............................................. 20,800 416,000
------------
875,413
------------
Oil & Gas -- 3.3%
Amerada Hess Corp. ....................................... 2,600 160,550
Anadarko Petroleum Corp. ................................. 4,000 197,250
Apache Corp. ............................................. 3,600 211,725
Burlington Resources, Inc. ............................... 6,800 260,100
Coastal Corp. ............................................ 6,700 407,863
Conoco, Inc. Class B...................................... 19,400 476,513
Exxon Mobil Corp. ........................................ 108,300 8,508,319
Occidental Petroleum Corp. ............................... 11,500 242,219
Phillips Petroleum Co. ................................... 7,900 400,431
Sunoco, Inc. ............................................. 2,900 85,369
Texaco, Inc. ............................................. 17,000 905,250
Tosco Corp. .............................................. 4,500 128,813
Transocean Sedco Forex, Inc. ............................. 6,500 347,344
Union Pacific Resources Group, Inc. ...................... 7,800 171,600
Unocal Corp. ............................................. 7,500 248,438
USX-Marathon Group, Inc. ................................. 9,700 243,106
------------
12,994,890
------------
</TABLE>
56
<PAGE> 58
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Oil Equipment & Services -- 0.6%
Halliburton Co. .......................................... 13,800 $ 651,188
Kerr-McGee Corp. ......................................... 3,000 176,813
*Rowan Cos., Inc. ......................................... 2,900 88,088
Schlumberger Ltd. ........................................ 17,200 1,283,550
------------
2,199,639
------------
Paper & Forest Products -- 0.3%
Boise Cascade Corp. ...................................... 1,700 43,988
Fort James Corp. ......................................... 6,400 148,000
Georgia Pacific Corp. .................................... 5,300 139,125
International Paper Co. .................................. 15,921 474,645
Louisiana-Pacific Corp. .................................. 3,700 40,238
Mead Corp. ............................................... 3,100 78,275
Potlatch Corp. ........................................... 900 29,813
Temple Inland, Inc. ...................................... 1,700 71,400
Westvaco Corp. ........................................... 3,100 76,919
Willamette Industries, Inc. .............................. 3,500 95,375
------------
1,197,778
------------
Photography Equipment & Supplies -- 0.2%
Eastman Kodak Co. ........................................ 9,400 559,300
Polaroid Corp. ........................................... 1,500 27,094
------------
586,394
------------
Railroads -- 0.3%
Burlington Northern Santa Fe Corp. ....................... 13,300 305,069
CSX Corp. ................................................ 6,700 141,956
*Kansas City Southern Industries, Inc. .................... 3,500 310,406
Norfolk Southern Corp. ................................... 11,900 177,013
Union Pacific Corp., Series A............................. 7,700 286,344
------------
1,220,788
------------
Real Estate -- 0.1%
Weyerhaeuser Co. ......................................... 7,300 313,900
------------
Restaurants -- 0.4%
Darden Restaurants, Inc. ................................. 4,100 66,625
*McDonald's Corp. ......................................... 41,600 1,370,200
*Tricon Global Restaurants, Inc. .......................... 4,200 118,650
Wendy's International, Inc. .............................. 3,700 65,906
------------
1,621,381
------------
</TABLE>
57
<PAGE> 59
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Retail - Clothing and Apparel -- 0.3%
Gap, Inc. ................................................ 26,500 $ 828,125
Limited, Inc. ............................................ 13,600 294,100
*Tiffany & Co., Inc. ...................................... 2,300 155,250
------------
1,277,475
------------
Retail Merchandising -- 4.5%
Albertson's, Inc. ........................................ 13,300 442,225
*Bed, Bath & Beyond, Inc. ................................. 4,400 159,500
*Best Buy Co., Inc. ....................................... 6,300 398,475
Circuit City Stores, Inc. ................................ 6,300 209,081
*Consolidated Stores Corp. ................................ 3,200 41,400
*Costco Wholesale Corp. ................................... 13,800 455,400
Dillard's, Inc. Class A................................... 3,100 37,975
Dollar General Corp. ..................................... 10,375 202,313
*Federated Department Stores, Inc. ........................ 6,600 222,750
Hasbro, Inc. ............................................. 5,400 81,338
Home Depot, Inc. ......................................... 71,700 3,580,519
*K Mart Corp. ............................................. 15,200 103,550
*Kohls Corp. .............................................. 10,200 567,375
Longs Drug Stores, Inc. .................................. 1,200 26,100
May Department Stores Co. ................................ 10,400 249,600
Nordstrom, Inc. .......................................... 4,200 101,325
*Office Depot, Inc. ....................................... 10,400 65,000
Penney (J.C.) Co., Inc. .................................. 8,100 149,344
*Rite Aid Corp. ........................................... 8,100 53,156
Sears, Roebuck & Co. ..................................... 11,000 358,875
Target Corp. ............................................. 13,600 788,800
The Great Atlantic & Pacific Tea Co., Inc. ............... 1,100 18,288
TJX Companies, Inc. ...................................... 9,500 178,125
*Toys "R" Us, Inc. ........................................ 6,700 97,569
Wal-Mart Stores, Inc. .................................... 138,600 7,986,825
Walgreen Co. ............................................. 31,500 1,013,906
Winn-Dixie Stores, Inc. .................................. 4,600 65,838
------------
17,654,652
------------
</TABLE>
58
<PAGE> 60
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Semiconductors -- 5.3%
*Altera Corp. ............................................. 6,200 $ 632,013
*Applied Materials, Inc. .................................. 25,100 2,274,688
*Broadcom Corp., Class A................................... 6,800 1,488,775
Intel Corp. .............................................. 104,000 13,903,500
*KLA-Tencor Corp. ......................................... 5,700 333,806
*LSI Logic Corp. .......................................... 9,300 503,363
*Micron Technology, Inc. .................................. 16,800 1,479,450
*National Semiconductor Corp. ............................. 5,300 300,775
*Novellus Systems, Inc. ................................... 4,000 226,250
------------
21,142,620
------------
Software -- 5.8%
Adobe Systems, Inc. ...................................... 3,700 481,000
Autodesk, Inc. ........................................... 1,900 65,906
*BMC Software, Inc. ....................................... 7,600 277,281
*Citrix Systems, Inc. ..................................... 5,600 106,050
Computer Associates International, Inc. .................. 18,300 936,731
*Compuware Corp. .......................................... 11,200 116,200
*Mercury Interactive Corp. ................................ 2,500 241,875
*Microsoft Corp. .......................................... 163,700 13,096,000
*Novell, Inc. ............................................. 10,200 94,350
*Oracle Corp. ............................................. 87,800 7,380,688
*Parametric Technology Corp. .............................. 8,400 92,400
*PeopleSoft, Inc. ......................................... 8,400 140,700
------------
23,029,181
------------
Steel -- 0.0%
*Bethlehem Steel Corp. .................................... 3,500 12,469
Nucor Corp. .............................................. 2,700 89,606
USX-U.S. Steel Group, Inc. ............................... 2,900 53,831
------------
155,906
------------
Tobacco -- 0.5%
Philip Morris Cos., Inc. ................................. 71,100 1,888,594
UST, Inc. ................................................ 4,300 63,156
------------
1,951,750
------------
Travel -- 0.0%
*Sabre Holdings Corp. ..................................... 4,068 115,938
------------
</TABLE>
59
<PAGE> 61
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Trucking -- 0.1%
FDX Corp. ................................................ 9,100 $ 345,800
Ryder System, Inc. ....................................... 2,000 37,875
------------
383,675
------------
Utilities -- 1.9%
Ameren Corp. ............................................. 4,300 145,125
American Electric Power Co. .............................. 9,960 295,065
Cinergy Corp. ............................................ 5,000 127,188
CMS Energy Corp. ......................................... 3,500 77,438
Columbia Energy Group..................................... 2,500 164,063
Consolidated Edison, Inc. ................................ 6,200 183,675
Constellation Energy Group................................ 4,700 153,044
CP&L Energy, Inc. ........................................ 5,000 159,688
Dominion Resources, Inc. (VA)............................. 7,300 312,988
Duke Power Co. ........................................... 11,300 637,038
Edison International...................................... 10,300 211,150
El Paso Energy Corp. ..................................... 7,200 366,750
Enron Corp. .............................................. 22,400 1,444,800
Entergy Corp. ............................................ 7,200 195,750
FirstEnergy Corp. ........................................ 7,300 170,638
Florida Progress Corp. ................................... 3,000 140,625
GPU, Inc. ................................................ 3,900 105,544
*Niagara Mohawk Holdings, Inc. ............................ 5,500 76,656
Nicor, Inc. .............................................. 1,300 42,413
Northern States Power Co. ................................ 4,800 96,900
Oneok, Inc. .............................................. 900 23,344
PECO Energy Co. .......................................... 5,300 213,656
Peoples Energy Corp. ..................................... 1,100 35,613
PG&E Corp. ............................................... 12,000 295,500
Pinnacle West Capital Corp. .............................. 2,700 91,463
PP&L Resources, Inc. ..................................... 4,500 98,719
Public Service Enterprise Group, Inc. .................... 6,800 235,450
Reliant Energy, Inc. ..................................... 9,200 271,975
Sempra Energy............................................. 6,207 105,519
Southern Co. ............................................. 20,200 470,913
TXU Corp. ................................................ 8,200 241,900
Unicom Corp. ............................................. 5,500 212,781
------------
7,403,371
------------
</TABLE>
60
<PAGE> 62
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The Equity 500 Index Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Waste Management -- 0.1%
*Allied Waste Industries, Inc. ............................ 5,900 $ 59,000
*Waste Management, Inc. ................................... 19,000 361,000
------------
420,000
------------
TOTAL COMMON STOCK (COST $382,108,484).................. 389,398,806
------------
SHORT TERM INVESTMENTS -- 2.1%
Provident Institutional Funds -- TempCash................. 8,180,647 8,180,647
------------
TOTAL SHORT TERM INVESTMENTS (COST $8,180,647).......... 8,180,647
------------
TOTAL INVESTMENTS -- 100.1% (COST $390,289,131)......... 397,579,453
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)............. (527,122)
------------
NET ASSETS -- 100.0%
(Equivalent to $10.24 per share based on 38,771,436 shares
of capital stock outstanding)........................... $397,052,331
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($397,052,331/38,771,436 shares outstanding).............. $ 10.24
============
</TABLE>
* Non-income producing
See accompanying notes to financial statements.
61
<PAGE> 63
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Growth Portfolio
2000 Semi-Annual Review
Market Street Investment Management Company
--------------------------------------------------------------------------------
The total return for the Market Street Fund All Pro Large Cap Growth Portfolio
for the first half of 2000 was -0.26%. This performance slightly lagged the
2.50% return of the Wilshire Large Growth Index, the style benchmark we use to
assess the performance of this portfolio.
The following two sub-advisers perform the day-to-day management of the
Portfolio. The two firms possess a large cap growth orientation.
<TABLE>
<CAPTION>
APPROXIMATE
MANAGER PORTFOLIO %
------- -----------
<S> <C>
Geewax Terker & Co...................................... 50%
Cohen, Klingenstein & Marks............................. 50%
Total Portfolio......................................... 100%
</TABLE>
Clearly the first half of 2000 was a disappointing period for the stock market
in general. First half returns for the S&P 500 and the Wilshire 5000, two
measures of the broad market, were modestly negative.
In the first quarter the market environment was more favorable to the large cap
growth investment style and investors were willing to pay for companies that
delivered high quality, consistent earnings. During the first two and a half
months, the market continued its strong run from the end of 1999. Price
momentum, high earnings growth and high price/earnings stocks, i.e. technology
stocks significantly outperformed the broad market. Then such stocks began to
reverse course in mid March. The Portfolio's positive first quarter performance
was erased during the second quarter. The biggest losers in this decline were in
many cases the big winners of the prior six months. The value indices moved
higher in April and May as investors fled technology stocks and moved into value
stocks such as consumer staples and deep value pharmaceuticals. This rotation
coincided with the markets focus on the tightening monetary policy of the
Federal Reserve. Late in June, however, large cap growth stocks rebounded with
the market focused on earnings and not the Fed; but this rebound could not
offset the price declines experienced in April and May.
The largest sector holdings of the Portfolio include:
<TABLE>
<CAPTION>
SECTOR %
------ -----
<S> <C>
Drugs and Health Care....................................... 14.4%
Software.................................................... 10.3%
Computers................................................... 9.4%
Communications.............................................. 8.9%
Electronics................................................. 7.2%
Retail Merchandising........................................ 7.0%
Semiconductors.............................................. 6.9%
</TABLE>
62
<PAGE> 64
During the second half of 2000 we will continue to invest in technology stocks
due to their growth potential. As we enter the third quarter there appears to be
a growing consensus that we are near the end of Federal reserve action.
Volatility will continue to be part of this market until some of the issues
overhanging the capital markets are resolved. We will continue to stick with our
investment discipline and our long-term investment horizon.
We look forward to your continued support.
Sarah C. Lange, CFA
President
63
<PAGE> 65
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Growth Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 96.5%
Automotive & Equipment -- 0.1%
Harley-Davidson, Inc. .................................... 1,800 $ 69,300
-----------
Banks -- 1.4%
U.S. Bancorp.............................................. 35,900 691,075
-----------
Beverages -- 1.9%
Coca-Cola Co. ............................................ 13,800 792,637
Pepsico, Inc. ............................................ 3,900 173,306
-----------
965,943
-----------
Broadcasting & Publishing -- 0.9%
*AT&T Corp. - Liberty Media-A............................. 2,500 60,624
Dow Jones & Co., Inc. .................................... 300 21,975
Time Warner, Inc. ........................................ 3,090 234,840
*Viacom, Inc. - Class B................................... 1,720 117,283
-----------
434,722
-----------
Building & Building Supplies -- 0.1%
Lowe's Cos., Inc. ........................................ 700 28,744
-----------
Business & Consumer Services -- 2.7%
*America Online, Inc. .................................... 10,180 536,995
*CMGI Information......................................... 1,400 64,137
*Convergys Corp. ......................................... 300 15,562
*InfoSpace.com, Inc. ..................................... 700 38,675
Interpublic Group of Cos., Inc. .......................... 1,400 60,200
Omnicom Group, Inc. ...................................... 1,150 102,422
*Safeguard Scientific, Inc. .............................. 675 21,641
SEI Investments Co. ...................................... 300 11,944
*TMP Worldwide, Inc. ..................................... 200 14,762
*VeriSign, Inc. .......................................... 875 154,437
*Yahoo!, Inc. ............................................ 2,700 334,462
-----------
1,355,237
-----------
Chemicals & Allied Products -- 1.5%
Pharmacia Corp. .......................................... 14,989 774,744
-----------
</TABLE>
64
<PAGE> 66
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Communications -- 8.9%
*ADC Telecommunications, Inc. ............................ 1,800 $ 150,975
*Advanced Fibre Communications, Inc. ..................... 700 31,719
*Allegiance Telecom, Inc. ................................ 795 50,880
ALLTEL Corp. ............................................. 9,925 614,730
*AT&T Wireless Group...................................... 90 2,509
*Comcast Corp. Special Class A Non-Voting................. 650 26,325
*Comverse Technology, Inc................................. 1,050 97,650
Corning Glass, Inc. ...................................... 1,400 377,825
*Ditech Communications Corp. ............................. 110 10,402
*Kana Communication, Inc. ................................ 40 2,475
*Level 3 Communications, Inc. ............................ 1,250 110,000
*McLeodUSA, Inc. ......................................... 2,500 51,719
*Metromedia Fiber Network, Inc. .......................... 2,700 107,156
*Nextel Communications, Inc. Class A...................... 3,700 226,394
Nortel Networks Corp. .................................... 4,200 286,650
*Qualcomm, Inc. .......................................... 2,800 168,000
*Redback Networks, Inc. .................................. 200 35,600
*RF Micro Devices, Inc. .................................. 500 43,812
SBC Communications, Inc. ................................. 1,609 69,589
Scientific-Atlanta, Inc. ................................. 500 37,250
*Sycamore Networks, Inc. ................................. 110 12,141
*Tellabs, Inc. ........................................... 10,925 747,680
*Valassis Communications, Inc. ........................... 600 22,875
*VerticalNet, Inc. ....................................... 600 22,162
*VoiceStream Wireless Corp. .............................. 690 80,244
*Western Wireless Corp. Class A........................... 200 10,900
*Williams Communications Group, Inc. ..................... 70 2,323
*WinStar Communications, Inc. ............................ 750 25,406
*Worldcom, Inc. .......................................... 22,617 1,037,555
-----------
4,462,946
-----------
Computer Peripherals -- 0.0%
*Internap Network Services Corp. ......................... 170 7,058
-----------
</TABLE>
65
<PAGE> 67
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Computers -- 9.4%
*Adaptec, Inc. ........................................... 100 $ 2,275
*Aether Systems, Inc. .................................... 20 4,100
*Agile Software Corp. .................................... 170 12,017
*Akamai Technologies, Inc. ............................... 220 26,122
Art Technology Group, Inc. ............................... 200 20,187
*Avanex Corp. ............................................ 50 4,775
*Brocade Communications Systems, Inc. .................... 300 55,045
*CDW Computer Centers, Inc. .............................. 200 12,500
*Cisco Systems, Inc. ..................................... 21,160 1,344,982
*Dell Computer Corp. ..................................... 8,250 406,828
*Digital Lightwave, Inc. ................................. 60 6,030
*EMC Corp. ............................................... 17,300 1,331,019
*Finisar Corp. ........................................... 420 10,999
*Foundry Networks, Inc. .................................. 200 22,100
*Globespan, Inc. ......................................... 120 14,649
Hewlett Packard Co. ...................................... 1,760 219,780
*Intuit, Inc. ............................................ 300 12,412
*Juniper Networks, Inc. .................................. 1,060 154,296
*Marchfirst, Inc. ........................................ 273 4,982
*Maxim Integrated Products, Inc. ......................... 1,800 122,287
*Medarex, Inc. ........................................... 150 12,675
*Network Appliance, Inc. ................................. 2,300 185,150
*Phone.com, Inc. ......................................... 390 25,399
*Quest Software, Inc. .................................... 110 6,091
*Silicon Storage Technology, Inc. ........................ 110 9,714
*Sun Microsystems, Inc. .................................. 4,300 391,031
*Turnstone System, Inc. .................................. 100 16,567
*Veritas Software Corp. .................................. 2,605 294,406
*Vitria Technology, Inc. ................................. 300 18,337
-----------
4,746,755
-----------
Cosmetics and Toiletries -- 2.1%
Avon Products, Inc. ...................................... 23,600 1,050,200
-----------
</TABLE>
66
<PAGE> 68
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Drugs & Health Care -- 14.4%
Abbott Laboratories....................................... 18,875 $ 841,117
Allergan, Inc. ........................................... 1,000 74,500
American Home Products Corp. ............................. 14,400 846,000
*Andrx Corp. ............................................. 700 44,745
Becton, Dickinson & Co. .................................. 28,300 811,856
Bristol-Myers Squibb Co. ................................. 16,610 967,532
CVS Corp. ................................................ 1,100 44,000
*Forest Laboratories, Inc. ............................... 400 40,400
*Human Genome Sciences, Inc. ............................. 400 53,350
*IVAX Corp. .............................................. 650 26,975
Johnson & Johnson......................................... 2,150 219,031
McKesson HBOC, Inc. ...................................... 34,675 726,008
Merck & Co., Inc. ........................................ 17,710 1,357,028
*Millennium Pharmaceuticals, Inc. ........................ 500 55,937
Pfizer, Inc. ............................................. 23,837 1,144,176
-----------
7,252,655
-----------
Electronic Instruments -- 0.4%
*Analog Devices, Inc. .................................... 2,500 190,000
-----------
Electronics -- 7.2%
*Agilent Technologies, Inc. .............................. 1,508 111,215
General Electric Co. ..................................... 29,430 1,500,930
*JDS Uniphase Corp. ...................................... 4,370 523,854
Linear Technology Corp. .................................. 1,800 115,087
Radioshack Corp. ......................................... 15,900 753,262
Texas Instruments, Inc. .................................. 5,300 364,044
*Xilinx, Inc. ............................................ 3,000 247,687
-----------
3,616,079
-----------
Entertainment -- 0.1%
*Walt Disney Co. ......................................... 1,000 38,812
-----------
</TABLE>
67
<PAGE> 69
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Finance -- 6.5%
American Express Co. ..................................... 750 $ 39,094
Citigroup, Inc. .......................................... 9,575 576,894
*Concord EFS, Inc. ....................................... 1,600 41,600
Franklin Resources, Inc. ................................. 24,350 739,631
MBNA Corp. ............................................... 32,900 892,413
Paychex, Inc. ............................................ 1,487 62,454
Providian Financial Corp. ................................ 10,525 947,250
-----------
3,299,336
-----------
Finance - Investment & Other -- 3.9%
Charles Schwab Corp. ..................................... 3,000 100,875
Fannie Mae................................................ 13,150 686,266
Federated Investors, Inc., Class B........................ 250 8,766
S & P 400 Mid-Cap Depositary Receipts..................... 1,000 88,750
Standard & Poor's Depositary Receipts..................... 7,550 1,096,873
-----------
1,981,530
-----------
Food & Food Distributors -- 0.2%
Keebler Foods Co. ........................................ 700 25,988
Sysco Corp. .............................................. 1,900 80,038
-----------
106,026
-----------
Insurance -- 1.9%
Conseco, Inc. ............................................ 99,000 965,250
-----------
Manufacturing -- 0.2%
Millipore Corp. .......................................... 750 56,531
Symbol Technologies, Inc. ................................ 300 16,706
*Waters Corp. ............................................ 300 37,444
-----------
110,681
-----------
Medical & Medical Services -- 2.2%
*Affymetrix, Inc. ........................................ 100 16,513
*Amgen Corp. ............................................. 15,200 1,067,800
*Celgene Corp. ........................................... 100 5,888
-----------
1,090,201
-----------
Medical Equipment & Supplies -- 0.4%
Medtronic, Inc. .......................................... 1,200 59,775
PE Corp. - PE Biosystems Group............................ 2,000 131,750
-----------
191,525
-----------
</TABLE>
68
<PAGE> 70
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Medical Instruments -- 1.7%
Biomet, Inc. ............................................. 300 $ 11,531
*Boston Scientific Corp. ................................. 37,300 818,269
*Sybron International Corp. .............................. 300 5,944
-----------
835,744
-----------
Office Equipment & Supplies -- 1.4%
*Staples, Inc. ........................................... 1,300 19,988
Xerox Corp. .............................................. 33,100 662,000
-----------
681,988
-----------
Oil & Gas -- 0.0%
Devon Energy Corp. ....................................... 100 5,619
Dynegy, Inc. ............................................. 138 9,427
-----------
15,046
-----------
Oil Equipment & Services -- 0.0%
*BJ Services Co. ......................................... 200 12,500
-----------
Restaurants -- 1.2%
*McDonald's Corp. ........................................ 18,600 612,637
-----------
Retail - Clothing and Apparel -- 1.5%
Gap, Inc. ................................................ 24,950 779,687
-----------
Retail Merchandising -- 7.0%
*Bed, Bath & Beyond, Inc. ................................ 24,800 899,000
*BJ's Wholesale Club, Inc. ............................... 400 13,200
Circuit City Stores, Inc. ................................ 200 6,638
*Costco Wholesale Corp. .................................. 680 22,440
Dollar General Corp. ..................................... 41,187 803,146
*Dollar Tree Stores, Inc. ................................ 1,000 39,563
Home Depot, Inc. ......................................... 11,750 586,766
*Kohls Corp. ............................................. 1,400 77,875
Wal-Mart Stores, Inc. .................................... 18,900 1,089,113
-----------
3,537,741
-----------
</TABLE>
69
<PAGE> 71
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Semiconductors -- 6.9%
*Altera Corp. ............................................ 900 $ 91,744
*Applied Materials, Inc. ................................. 5,120 464,000
*Applied Micro Circuits Corp. ............................ 500 49,375
*Atmel Corp. ............................................. 300 11,063
*Broadcom Corp., Class A.................................. 950 207,991
*Fairchild Semiconductor Corp., Class A................... 60 2,430
Intel Corp. .............................................. 16,150 2,159,054
*KLA-Tencor Corp. ........................................ 400 23,425
*LSI Logic Corp. ......................................... 400 21,650
*Microchip Technology, Inc. .............................. 350 20,393
*Novellus Systems, Inc. .................................. 400 22,625
*PMC-Sierra, Inc. ........................................ 875 155,477
*QLogic Corp. ............................................ 900 59,456
*SDL, Inc. ............................................... 400 114,075
*Vitesse Semiconductors Corp. ............................ 1,000 73,563
-----------
3,476,321
-----------
</TABLE>
70
<PAGE> 72
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Software -- 10.3%
Adobe Systems, Inc. ...................................... 600 $ 78,000
*BEA Systems, Inc. ....................................... 1,300 64,269
*BMC Software, Inc. ...................................... 12,700 463,352
*BroadVision, Inc. ....................................... 1,450 73,678
Computer Associates International, Inc. .................. 12,900 660,319
*Compuware Corp. ......................................... 63,500 658,813
*Epiphany, Inc. .......................................... 20 2,144
*Exodus Communications, Inc. ............................. 2,100 96,731
*I2 Technologies, Inc. ................................... 900 93,839
*Inktomi Corp. ........................................... 900 106,425
*Lycos, Inc. ............................................. 600 32,400
*Mercury Interactive Corp. ............................... 700 67,725
*Micromuse, Inc. ......................................... 350 57,920
*Microsoft Corp. ......................................... 13,100 1,048,000
*Oracle Corp. ............................................ 11,050 928,891
*Parametric Technology Corp. ............................. 53,600 589,600
*Rational Software Corp. ................................. 900 83,644
*Scient Corp. ............................................ 100 4,413
*Symantec Corp. .......................................... 250 13,484
*TIBCO Software, Inc. .................................... 90 9,651
*Vignette Corp. .......................................... 800 41,613
-----------
5,174,911
-----------
Transportation -- 0.0%
Expeditors International of Washington, Inc. ............. 200 9,500
United Parcel Service..................................... 200 11,800
-----------
21,300
-----------
Utilities -- 0.1%
Enron Corp. .............................................. 700 45,150
-----------
TOTAL COMMON STOCK (COST $43,177,139)................... 48,621,844
-----------
</TABLE>
71
<PAGE> 73
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Growth Portfolio
Schedule of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
SHORT TERM INVESTMENTS -- 2.3%
Provident Institutional Funds -- TempCash................. 1,158,275 $ 1,158,275
-----------
TOTAL SHORT TERM INVESTMENTS (COST $1,158,275).......... 1,158,275
-----------
TOTAL INVESTMENTS -- 98.8% (COST $44,335,414)........... 49,780,119
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.2%............... 608,304
-----------
NET ASSETS -- 100.0%
(Equivalent to $14.16 per share based on 3,558,456 shares
of capital stock outstanding)........................... $50,388,423
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($50,388,423/3,558,456 shares outstanding)................ $ 14.16
===========
</TABLE>
* Non-Income Producing.
See accompanying notes to financial statements.
72
<PAGE> 74
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
2000 Semi-Annual Review
Market Street Investment Management Company
--------------------------------------------------------------------------------
The total return for the Market Street Fund All Pro Large Cap Value Portfolio
for the first half of 2000 was -6.74%. This performance slightly lagged the
-5.70% return of the Wilshire Large Value Index, the style benchmark we use to
assess the performance of this portfolio.
The following three sub-advisers perform the day-to-day management of the
Portfolio. The three firms possess a proven large cap value orientation and
discipline.
<TABLE>
<CAPTION>
APPROXIMATE
MANAGER PORTFOLIO %
------- -----------
<S> <C>
Mellon Equity Advisors.................................. 40%
Equinox Capital......................................... 35%
Sanford C. Bernstein.................................... 25%
---
Total Portfolio......................................... 100%
</TABLE>
Effective April 4th, Sanford C. Bernstein "Bernstein" a well known value
manager, replaced Harris Associates as a sub-adviser to this Portfolio. In
addition, the portfolio allocation to Bernstein was increased to 25%.
With growth stocks continuing to drive this market, the growth indices
outperformed the value indices in the first six months. The first quarter proved
to be difficult for value investors as large cap growth names dominated
performance until mid March. The value indices moved higher in April and May as
investors fled high priced technology stocks and moved into value stocks such as
consumer staples and deep value pharmaceuticals. This rotation coincided with
the market's focus on the tightening monetary policy of the Federal Reserve.
Value stocks that are sensitive to rising interest rates such as banks, housing,
and consumer durables did not perform well and declined significantly over the
first half of the year. Late in June large cap growth stocks rebounded with the
market refocused less on the Fed and more on earnings. The resurgence in
interest rate sensitive value stocks proved to be short lived, similar to the
bounce experienced by value stocks in the second quarter of last year.
The largest sector holdings of the portfolio include:
<TABLE>
<CAPTION>
SECTOR %
------ -----
<S> <C>
Finance..................................................... 10.4%
Communications.............................................. 10.2%
Drugs & Health Care......................................... 8.3%
Oil & Gas................................................... 7.9%
Insurance................................................... 7.5%
Banks....................................................... 6.0%
</TABLE>
73
<PAGE> 75
The second quarter taught us that the market does pay attention to high
valuation levels. In May and June there were signs that valuation and earnings
prospects of some value stocks were beginning to capture investor attention. The
fundamentals of many portfolio companies are very strong. We believe that our
disciplined focus on under-valued investments with sustainable earnings momentum
will be rewarded over the long term. We look forward to benefiting from the
improvement under way in the value portion of the market and we appreciate your
support.
Sarah C. Lange, CFA
President
74
<PAGE> 76
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 95.8%
Aerospace & Defense -- 1.0%
Boeing Co. ............................................... 2,600 $ 108,712
*Litton Industries, Inc. ................................. 350 14,700
Lockheed Martin Corp. .................................... 700 17,369
Northrop Grumman Holdings Corp. .......................... 550 36,437
United Technologies Corp. ................................ 1,023 60,229
-----------
237,447
-----------
Airlines -- 0.7%
*AMR Corp. ............................................... 1,000 26,437
Delta Air Lines, Inc. .................................... 1,900 141,575
-----------
168,012
-----------
Apparel -- 0.1%
VF Corp. ................................................. 900 21,544
-----------
Appliances -- 0.0%
Black & Decker Corp. ..................................... 300 11,794
-----------
Automobiles -- 1.5%
Ford Motor Co. ........................................... 4,600 197,800
General Motors Corp. ..................................... 2,800 162,574
-----------
360,374
-----------
Automotive & Equipment -- 0.5%
Cooper Tire & Rubber Co. ................................. 250 2,781
Dana Corp. ............................................... 1,200 25,425
Delphi Automotive Systems Corp. .......................... 2,000 29,375
Genuine Parts Co. ........................................ 1,300 26,000
Goodyear Tire & Rubber Co. ............................... 1,100 22,000
*Visteon Corp. ........................................... 601 7,302
-----------
112,883
-----------
</TABLE>
75
<PAGE> 77
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Banks -- 6.0%
Bank of America Corp. .................................... 8,773 $ 377,239
Bank One Corp. ........................................... 1,600 42,500
Chase Manhattan Corp. .................................... 2,350 108,247
Comerica, Inc. ........................................... 1,100 49,362
Firstar Corp. ............................................ 4,600 96,887
First Union Corp. ........................................ 1,300 32,256
Keycorp................................................... 1,900 33,487
Morgan (J.P.) & Co., Inc. ................................ 2,900 319,361
National City Corp. ...................................... 1,700 29,006
PNC Financial Services Group.............................. 4,800 224,999
Regions Financial Corp. .................................. 1,500 29,812
Southtrust Corp. ......................................... 1,200 27,150
Summit Bancorp............................................ 1,300 32,012
Union Planters Corp. ..................................... 2,600 72,637
-----------
1,474,955
-----------
Beverages -- 1.0%
Anheuser-Busch Companies, Inc. ........................... 400 29,875
Coca-Cola Co. ............................................ 500 28,719
Coca-Cola Enterprises, Inc. .............................. 1,300 21,206
Pepsi Bottling Group, Inc. ............................... 1,200 35,025
Pepsico, Inc. ............................................ 2,800 124,425
-----------
239,250
-----------
Broadcasting & Publishing -- 4.1%
American Greetings Corp., Class A......................... 500 9,500
AT&T Corp. -- Liberty Media-A............................. 11,287 273,710
*Fox Entertainment Group, Inc. ........................... 2,000 60,750
Gannett, Inc. ............................................ 1,300 77,756
*Infinity Broadcasting, Inc. ............................. 1,200 43,725
McGraw-Hill, Inc. ........................................ 1,300 70,200
*MediaOne Group, Inc. .................................... 1,300 86,531
New York Times Co. ....................................... 1,200 47,400
Time Warner, Inc. ........................................ 750 57,000
Tribune Co. .............................................. 3,400 119,000
*Viacom, Inc., Class B.................................... 2,200 150,012
-----------
995,584
-----------
</TABLE>
76
<PAGE> 78
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Building & Building Supplies -- 0.3%
Centex Corp. ............................................. 450 $ 10,575
Lafarge Corp. ............................................ 1,800 37,800
Lowe's Cos., Inc. ........................................ 800 32,850
Owens Corning, Inc. ...................................... 200 1,850
-----------
83,075
-----------
Business & Consumer Services -- 0.2%
*America Online, Inc. .................................... 600 31,650
Yahoo!, Inc. ............................................. 50 6,194
-----------
37,844
-----------
Chemicals & Allied Products -- 2.0%
Air Products & Chemicals, Inc. ........................... 1,100 33,894
Ashland, Inc. ............................................ 550 19,284
Cabot Corp. .............................................. 500 13,625
Dow Chemical Co. ......................................... 6,150 185,653
Du Pont (E.I.) de Nemours & Co. .......................... 1,000 43,750
Eastman Chemical Co. ..................................... 1,400 66,850
*F.M.C. Corp. ............................................ 250 14,500
Great Lakes Chemical Corp. ............................... 450 14,175
Hercules, Inc. ........................................... 800 11,250
Lubrizol Corp. ........................................... 450 9,450
Praxair, Inc. ............................................ 800 29,950
Union Carbide............................................. 750 37,125
-----------
479,506
-----------
</TABLE>
77
<PAGE> 79
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Communications -- 10.2%
ALLTEL Corp. ............................................. 1,300 $ 80,519
*Andrew Corp. ............................................ 400 13,425
*AT&T Wireless Group...................................... 3,600 100,350
*AT&T Corp. .............................................. 11,550 365,268
Bell Atlantic Corp. ...................................... 1,650 83,840
BellSouth Corp. .......................................... 6,900 294,111
*Copper Mountain Networks, Inc. .......................... 300 26,438
GTE Corp. ................................................ 3,700 230,325
Lucent Technologies, Inc. ................................ 3,200 189,600
Nortel Networks Corp. .................................... 800 54,600
*Qualcomm, Inc. .......................................... 125 7,500
SBC Communications, Inc. ................................. 10,866 469,955
Sprint Corp. ............................................. 2,200 112,200
Telephone and Data Systems, Inc. ......................... 400 40,100
US West, Inc. ............................................ 2,000 171,500
*Worldcom, Inc. .......................................... 5,250 240,844
-----------
2,480,575
-----------
Computers -- 5.3%
*Adaptec, Inc. ........................................... 800 18,200
*Apple Computer, Inc. .................................... 1,800 94,275
*Brocade Communications Systems, Inc. .................... 400 73,394
*Cisco Systems, Inc. ..................................... 2,900 184,331
Compaq Computer Corp. .................................... 7,600 194,275
*Dell Computer Corp. ..................................... 700 34,519
*DST Systems.............................................. 400 30,450
*EMC Corp. ............................................... 550 42,316
Hewlett Packard Co. ...................................... 1,775 221,653
International Business Machines Corp. .................... 2,100 230,081
*NCR Corp. ............................................... 1,600 62,300
*SunGard Data Systems, Inc. .............................. 1,200 37,200
*Sun Microsystems, Inc. .................................. 500 45,469
*Vishay Intertechnology, Inc. ............................ 600 22,763
-----------
1,291,226
-----------
</TABLE>
78
<PAGE> 80
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Consumer Products -- 1.1%
Briggs & Stratton Corp. .................................. 75 $ 2,569
*Energizer Holdings, Inc. ................................ 966 17,629
Fortune Brands, Inc. ..................................... 2,700 62,269
Maytag Corp. ............................................. 175 6,453
Newell Rubbermaid, Inc. .................................. 1,300 33,475
Procter & Gamble Co. ..................................... 1,625 93,032
Whirlpool Corp. .......................................... 1,150 53,619
-----------
269,046
-----------
Containers -- 0.2%
Ball Corp. ............................................... 250 8,047
*Owens-Illinois, Inc. .................................... 1,200 14,025
Sonoco Products Co. ...................................... 800 16,450
-----------
38,522
-----------
Cosmetics and Toiletries -- 0.3%
Avon Products, Inc. ...................................... 1,800 80,100
-----------
Drugs & Health Care -- 8.3%
Abbott Laboratories....................................... 2,700 120,319
Aetna, Inc. .............................................. 600 38,512
Allergan, Inc. ........................................... 600 44,700
Bausch & Lomb, Inc. ...................................... 600 46,425
Baxter International, Inc. ............................... 2,700 189,844
Becton, Dickinson & Co. .................................. 1,100 31,556
Bristol-Myers Squibb Co. ................................. 5,350 311,637
Eli Lilly & Co. .......................................... 550 54,931
HCA - The Healthcare Co. ................................. 5,350 162,506
Johnson & Johnson......................................... 4,750 483,907
Merck & Co., Inc. ........................................ 3,700 283,512
Pfizer, Inc. ............................................. 1,925 92,400
Schering Plough Corp. .................................... 900 45,450
UnitedHealth Group, Inc. ................................. 1,300 111,475
-----------
2,017,174
-----------
</TABLE>
79
<PAGE> 81
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Electronics -- 2.7%
*Arrow Electronics, Inc. ................................. 700 $ 21,700
Avnet, Inc. .............................................. 350 20,737
Emerson Electric Co. ..................................... 800 48,300
General Electric Co. ..................................... 7,800 397,800
Johnson Controls, Inc. ................................... 600 30,787
Motorola, Inc. ........................................... 1,275 37,054
*Teradyne, Inc. .......................................... 900 66,150
Texas Instruments, Inc. .................................. 400 27,475
Thomas & Betts Corp. ..................................... 450 8,606
-----------
658,609
-----------
Energy -- 1.5%
Chevron Corp. ............................................ 2,400 203,550
DTE Energy Co. ........................................... 1,100 33,619
KeySpan Corp. ............................................ 1,300 39,975
New Century Energies, Inc. ............................... 600 18,412
Royal Dutch Petroleum Co. ................................ 500 30,781
Valero Energy Corp. ...................................... 1,600 50,800
-----------
377,137
-----------
Entertainment -- 1.1%
*Walt Disney Co. ......................................... 7,225 280,421
-----------
Finance -- 10.4%
American Express Co. ..................................... 2,000 104,250
Bear Stearns Companies, Inc. ............................. 300 12,487
Citigroup, Inc. .......................................... 14,200 855,550
FleetBoston Financial Corp. .............................. 12,700 431,800
GreenPoint Financial Corp. ............................... 2,300 43,125
Hartford Financial Services, Inc. ........................ 4,600 257,312
Lehman Brothers Holdings, Inc. ........................... 375 35,461
MBNA Corp. ............................................... 3,600 97,650
Merrill Lynch & Co., Inc. ................................ 1,000 115,000
Morgan Stanley Dean Witter & Co. ......................... 6,600 549,450
Washington Mutual, Inc. .................................. 950 27,431
-----------
2,529,516
-----------
</TABLE>
80
<PAGE> 82
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Food & Food Distributors -- 3.1%
Archer-Daniels Midland Co. ............................... 3,000 $ 29,437
ConAgra, Inc. ............................................ 3,600 68,625
General Mills, Inc. ...................................... 3,600 137,700
*Heinz (H.J.) Co. ........................................ 4,100 179,375
Hormel Foods Corp. ....................................... 1,100 18,494
Quaker Oats Co. .......................................... 1,900 142,738
*Safeway, Inc. ........................................... 1,100 49,638
Sara Lee Corp. ........................................... 2,200 42,487
Supervalu, Inc. .......................................... 3,400 64,813
Tyson Foods, Inc. ........................................ 1,600 14,000
-----------
747,307
-----------
Home Furnishings/Housewares -- 0.1%
Leggett & Platt, Inc. .................................... 1,500 24,750
-----------
Hotel/Restaurants -- 0.4%
Hilton Hotels Corp. ...................................... 2,800 26,250
Starwood Hotels & Resorts Worldwide, Inc. ................ 2,500 80,781
-----------
107,031
-----------
Industrial Diversified -- 0.2%
Fluor Corp. .............................................. 550 17,394
Sherwin Williams Co. ..................................... 1,300 27,544
-----------
44,938
-----------
Insurance -- 7.5%
Ambac Financial Group, Inc. .............................. 1,800 98,662
American General Corp. ................................... 2,700 164,700
American International Group, Inc. ....................... 4,850 569,875
Aon Corp. ................................................ 1,200 37,275
Chubb Corp. .............................................. 1,950 119,925
Cigna Corp. .............................................. 3,400 317,900
Conseco, Inc. ............................................ 9,000 87,750
Lincoln National Corp. ................................... 1,100 39,737
Marsh & McLennan Cos., Inc. .............................. 900 93,994
MBIA, Inc. ............................................... 500 24,094
MGIC Investment Corp. .................................... 700 31,850
Radian Group, Inc. ....................................... 1,300 67,275
St. Paul Companies, Inc. ................................. 4,700 160,387
Torchmark Corp. .......................................... 1,000 24,687
-----------
1,838,111
-----------
</TABLE>
81
<PAGE> 83
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Leisure & Amusements -- 0.1%
Brunswick Corp. .......................................... 700 $ 11,594
Carnival Corp., Class A................................... 600 11,700
-----------
23,294
-----------
Machinery & Heavy Equipment -- 0.9%
Deere & Co. .............................................. 4,500 166,500
Dover Corp. .............................................. 1,300 52,731
-----------
219,231
-----------
Manufacturing -- 2.7%
Alcan Aluminium Ltd. ..................................... 1,000 31,000
Alcoa, Inc. .............................................. 3,000 87,000
Cooper Industries, Inc. .................................. 1,800 58,613
Cummins Engine Co., Inc. ................................. 300 8,175
Eaton Corp. .............................................. 300 20,100
Honeywell International, Inc. ............................ 2,500 84,219
Minnesota Mining & Manufacturing Co. ..................... 1,000 82,500
PPG Industries, Inc. ..................................... 1,000 44,313
PPG Industries, Inc. ..................................... 700 31,019
*Smurfit-Stone Container Corp. ........................... 1,700 21,888
Textron, Inc. ............................................ 2,500 135,781
Tyco International Ltd. .................................. 1,400 66,326
-----------
670,934
-----------
Manufacturing Equipment -- 0.2%
Illinois Tool Works, Inc. ................................ 788 44,916
-----------
Medical & Medical Services -- 0.0%
Bergen Brunswig Corp. .................................... 500 2,750
*Foundation Health Systems, Inc. Class A.................. 400 5,200
-----------
7,950
-----------
Medical Instruments -- 0.3%
*St. Jude Medical, Inc. .................................. 1,600 73,400
-----------
</TABLE>
82
<PAGE> 84
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Oil & Gas -- 7.9%
Amerada Hess Corp. ....................................... 3,750 $ 231,563
Conoco, Inc. Class B...................................... 1,400 34,388
Exxon Mobil Corp. ........................................ 10,628 834,962
Occidental Petroleum Corp. ............................... 1,600 33,700
Phillips Petroleum Co. ................................... 3,000 152,062
Sunoco, Inc. ............................................. 700 20,606
Texaco, Inc. ............................................. 5,202 277,007
Tosco Corp. .............................................. 1,100 31,488
Unocal Corp. ............................................. 6,300 208,688
USX-Marathon Group, Inc. ................................. 3,800 95,238
-----------
1,919,702
-----------
Oil & Equipment & Services -- 0.4%
*BJ Services Co. ......................................... 900 56,250
National Fuel Gas Co. .................................... 600 29,250
-----------
85,500
-----------
Paper & Forest Products -- 0.9%
Boise Cascade Corp. ...................................... 500 12,938
Fort James Corp. ......................................... 1,100 25,438
International Paper Co. .................................. 2,860 85,264
Mead Corp. ............................................... 800 20,200
Temple Inland, Inc. ...................................... 400 16,800
Westvaco Corp. ........................................... 2,100 52,106
-----------
212,746
-----------
Photography Equipment & Services -- 0.1%
Eastman Kodak Co. ........................................ 500 29,750
-----------
Railroads -- 1.3%
Burlington Northern Santa Fe Corp. ....................... 1,500 34,406
CSX Corp. ................................................ 1,500 31,781
Norfolk Southern Corp. ................................... 2,000 29,750
Union Pacific Corp., Series A............................. 5,700 211,969
-----------
307,906
-----------
Restaurants -- 0.2%
Darden Restaurants, Inc. ................................. 2,400 39,000
-----------
</TABLE>
83
<PAGE> 85
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Retail Merchandising -- 2.2%
*Federated Department Stores, Inc. ....................... 3,600 $ 121,500
Hasbro, Inc. ............................................. 1,400 21,088
Home Depot, Inc. ......................................... 600 29,963
Limited, Inc. ............................................ 2,200 47,575
May Department Stores Co. ................................ 1,200 28,800
*Office Depot, Inc. ...................................... 2,400 15,000
Sears, Roebuck & Co. ..................................... 4,100 133,763
TJX Companies, Inc. ...................................... 2,800 52,500
Wal-Mart Stores, Inc. .................................... 1,600 92,200
-----------
542,389
-----------
Semiconductors -- 2.1%
*Applied Materials, Inc. ................................. 550 49,844
*KLA-Tencor Corp. ........................................ 600 35,138
Intel Corp. .............................................. 2,364 316,038
*LSI Logic Corp. ......................................... 1,100 59,538
*SDL, Inc. ............................................... 200 57,038
-----------
517,596
-----------
Software -- 1.7%
Computer Associates International, Inc. .................. 2,400 122,850
*Microsoft Corp. ......................................... 2,100 168,000
*Oracle Corp. ............................................ 1,400 117,688
-----------
408,538
-----------
Steel -- 0.1%
Nucor Corp. .............................................. 600 19,913
-----------
Technology -- 0.1%
*Ingram Micro, Inc. Class A............................... 1,100 19,181
*Tech Data Corp. ......................................... 400 17,425
-----------
36,606
-----------
Tobacco -- 0.9%
Philip Morris Cos., Inc. ................................. 7,900 209,844
-----------
Transportation -- 0.2%
United Parcel Service..................................... 700 41,300
-----------
</TABLE>
84
<PAGE> 86
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Large Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Utilities -- 3.9%
Allegheny Energy, Inc. ................................... 900 $ 24,638
Ameren Corp. ............................................. 1,000 33,750
American Electric Power Co. .............................. 1,140 33,773
Cinergy Corp. ............................................ 1,200 30,525
Consolidated Edison, Inc. ................................ 1,000 29,625
Constellation Energy Group................................ 2,700 87,919
Enron Corp. .............................................. 1,800 116,100
FirstEnergy Corp. ........................................ 1,500 35,063
Northern States Power Co. ................................ 800 16,150
PG&E Corp. ............................................... 4,700 115,738
Pinnacle West Capital Corp. .............................. 1,200 40,650
PP&L Resources, Inc. ..................................... 1,100 24,131
Public Service Enterprise Group, Inc. .................... 2,100 72,713
Puget Sound Energy, Inc. ................................. 700 14,919
Reliant Energy, Inc. ..................................... 2,900 85,731
Southern Co. ............................................. 3,200 74,600
TXU Corp. ................................................ 3,500 103,250
Wisconsin Energy Corp. ................................... 900 17,831
-----------
957,106
-----------
TOTAL COMMON STOCK (COST $24,166,546)............... 23,374,352
-----------
SHORT TERM INVESTMENTS -- 5.2%
Provident Institutional Funds -- TempCash................. 1,266,628 1,266,628
-----------
TOTAL SHORT TERM INVESTMENTS (COST $1,266,628).......... 1,266,628
-----------
TOTAL INVESTMENTS -- 101.0% (COST $25,433,174).......... 24,640,980
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.0%)............. (234,604)
-----------
NET ASSETS -- 100.0%
(Equivalent to $9.22 per share based on 2,646,772 shares
of capital stock outstanding)............................. $24,406,376
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($24,406,376/2,646,772 shares outstanding)................ $ 9.22
===========
</TABLE>
* Non-Income producing.
See accompanying notes to financial statements.
85
<PAGE> 87
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Growth Portfolio
2000 Semi-Annual Review
Market Street Investment Management Company
--------------------------------------------------------------------------------
The total return for the Small Cap Growth Portfolio for the first half of 2000
was 9.28%. This return exceeded the 8.50% return of the Wilshire Small Growth
Index, the style benchmark we use to assess the performance of this portfolio.
The following two sub-advisers perform the day-to-day management of the
Portfolio. The two firms possess a proven small cap growth orientation and
discipline.
<TABLE>
<CAPTION>
APPROXIMATE
MANAGER PORTFOLIO %
------- -----------
<S> <C>
Husic Capital Management................................ 60%
Standish, Ayer & Wood................................... 40%
Total Portfolio......................................... 100%
</TABLE>
During the first two and a half months, the small cap growth market continued
its powerful surge that began last year and carried through mid March. High
earnings growth and high price/earnings stocks, i.e. technology stocks
significantly outperformed the broad market. The strong bull market earlier this
year was fueled by IPO fever, a major increase in retail participation including
the "day trader phenomenon", strong mutual fund cash flows, and enthusiasm for
new economy internet and genomics companies. Technology and other growth stocks
drove the NASDAQ up 22% through March 10th. Then such stocks reversed course and
the NASDAQ declined over 37% between March 10th and May 23; the collapse of the
NASDAQ from the 5000 level to a low of 3043; a "tech wreck". The biggest losers
in this decline were in many cases the biggest winners of the prior 6 months.
Also, the non-earnings story stocks finally got crushed in the second quarter as
investors' patience had begun to wear out. In April and May investors fled the
tech wreck and moved into value stocks. Despite many forecasts of further
significant declines, the NASDAQ rallied sharply in June to roughly the 4000
level and maintained that level through the end of the quarter. In June alone,
the NASDAQ was up over 16%, leading many investors to wonder if the worst was
behind them. Year to date the NASDAQ is down 2.5%. Overall first half returns
for small cap growth stocks were strong relative to the broad market averages
that witnessed declines.
The largest sector holdings of the Portfolio include:
<TABLE>
<CAPTION>
SECTOR %
------ -----
<S> <C>
Electronics................................................. 21.7%
Communications.............................................. 15.2%
Semiconductors.............................................. 9.6%
Drugs & Health Care......................................... 7.5%
Oil Equipment & Services.................................... 6.1%
Computers................................................... 6.0%
</TABLE>
86
<PAGE> 88
The investment process used for the Portfolio positions it in dynamic growth
sectors of the economy with investments in innovative, aggressive companies. An
emphasis on technology-related sectors will continue. We expect small U.S.
companies, in particular, to continue to be the beneficiaries of robust growth
in the future.
We look forward to your continued support.
Sarah C. Lange, CFA
President
87
<PAGE> 89
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Growth Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 95.0%
Air Transport -- 1.7%
*EGL, Inc. ............................................... 26,000 $ 799,500
*Forward Air Corp. ....................................... 14,950 598,000
-----------
1,397,500
-----------
Airlines -- 1.9%
*Atlantic Coast Airlines, Inc. ........................... 19,700 625,475
*Ryanair Holdings Plc..................................... 17,900 653,350
SkyWest, Inc. ............................................ 8,100 300,206
-----------
1,579,031
-----------
Banks -- 1.5%
*Golden State Bancorp, Inc. .............................. 72,600 1,306,800
-----------
Broadcasting & Publishing -- 2.0%
*Citadel Communications Corp. ............................ 14,100 492,619
*Emmis Broadcasting Corp., Class A........................ 13,000 537,875
Scandinavian Broadcasting S.A. ........................... 12,600 686,700
-----------
1,717,194
-----------
Building & Building Supplies -- 0.5%
*Dycom Industries, Inc. .................................. 9,000 414,000
-----------
Business & Consumer Services -- 2.7%
*Corporate Executive Board Co. ........................... 11,000 658,625
*Liberty Digital, Inc. Class A............................ 15,200 456,000
*SmartForce Plc - ADR..................................... 9,500 456,000
*Sportsline USA, Inc. .................................... 18,400 313,950
TMP Worldwide, Inc. ...................................... 5,900 435,494
-----------
2,320,069
-----------
</TABLE>
88
<PAGE> 90
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Communications -- 15.2%
*Acme Communications, Inc. ............................... 26,500 $ 483,625
*Aware, Inc. ............................................. 31,800 1,625,775
*Com21, Inc. ............................................. 35,200 880,000
*Entercom Communications Corp. ........................... 9,100 443,625
*GT Group Telecom, Inc. .................................. 74,600 1,179,612
*ICG Communications, Inc. ................................ 40,400 891,325
*Insight Communications Co., Inc. ........................ 18,800 293,750
*Leap Wireless International, Inc. ....................... 20,700 972,900
*NBC Internet, Inc. ...................................... 41,000 512,500
*Pegasus Communications Corp. ............................ 25,200 1,236,375
*Pinnacle Holdings, Inc. ................................. 8,700 469,800
*Regent Communications, Inc. ............................. 13,900 119,453
*SBA Communications Corp. ................................ 9,500 493,406
*Terayon Communication Systems, Inc. ..................... 13,700 880,011
*Tut Systems, Inc. ....................................... 23,000 1,319,625
*Western Wireless Corp. Class A........................... 7,200 392,400
Westwood One, Inc. ....................................... 19,600 668,850
-----------
12,863,032
-----------
Computers -- 6.0%
*Allaire Corp. ........................................... 8,000 294,000
*Alteon Websystems, Inc. ................................. 5,000 500,312
*Bottomline Technologies, Inc. ........................... 8,400 287,175
*Breakaway Solutions, Inc. ............................... 5,400 145,800
*Crossroads Systems, Inc. ................................ 8,400 212,100
Cybex Computer Products Corp. ............................ 10,750 462,250
*Data Return Corp. ....................................... 11,400 330,600
*Emulex Corp. ............................................ 6,400 420,400
*Gadzoox Networks, Inc. .................................. 12,700 173,831
*Media Metrix, Inc. ...................................... 10,500 267,094
*NetScout Systems, Inc. .................................. 26,000 334,750
Silicon Storage Technology, Inc. ......................... 15,900 1,404,169
*Visual Networks, Inc. ................................... 7,200 205,200
-----------
5,037,681
-----------
</TABLE>
89
<PAGE> 91
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Drugs & Health Care -- 7.5%
*Alexion Pharmaceuticals, Inc. ........................... 6,000 $ 429,000
*Alkermes, Inc. .......................................... 8,100 381,712
Bindley Western Industries, Inc. ......................... 57,200 1,512,225
Cephalon, Inc. ........................................... 6,500 389,187
*COR Therapeutics, Inc. .................................. 3,500 298,594
*Inhale Therapeutic Systems............................... 5,600 568,225
*Medicis Pharmaceutical Corp., Class A.................... 8,600 490,200
*Priority Healthcare Corp. Class B........................ 28,274 2,101,112
*Vical, Inc. ............................................. 6,300 121,275
-----------
6,291,530
-----------
Electrical Equipment -- 0.5%
*Quanta Services, Inc. ................................... 7,450 409,750
-----------
Electronics -- 21.7%
*ATMI, Inc. .............................................. 15,300 711,450
*Burr-Brown Corp. ........................................ 4,800 416,100
*Credence Systems Corp. .................................. 8,400 463,575
*Cree Research, Inc. ..................................... 14,300 1,909,050
*Integrated Silicon Solution, Inc. ....................... 30,900 1,174,200
*International Rectifier Corp. ........................... 14,500 812,000
*LAM Research Corp. ...................................... 29,900 1,121,250
*LTX Corp. ............................................... 35,200 1,229,800
*Micrel, Inc. ............................................ 13,400 582,062
*Netsilicon, Inc. ........................................ 80,700 2,642,925
*Photronics, Inc. ........................................ 16,300 462,513
*Pixelworks, Inc. ........................................ 12,700 288,925
*Quicklogic Corp. ........................................ 21,000 467,250
*Semtech Corp. ........................................... 11,400 871,922
Triquint Semiconductor, Inc. ............................. 13,200 1,263,075
Varian Semiconductor Equipment Associates, Inc. .......... 27,800 1,746,187
*Veeco Instruments, Inc. ................................. 8,000 586,000
*Virata Corp. ............................................ 26,900 1,603,912
-----------
18,352,196
-----------
Finance - Investment & Other -- 1.4%
*NCO Group, Inc. ......................................... 13,600 314,500
S & P 400 Mid-Cap Depositary Receipts..................... 9,400 834,250
-----------
1,148,750
-----------
</TABLE>
90
<PAGE> 92
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Leisure & Amusements -- 0.9%
*Bally Total Fitness Holding Corp. ....................... 14,200 $ 360,325
*Cinar Films, Inc. ....................................... 5,400 27,000
Tweeter Home Entertainment Group, Inc. ................... 11,600 352,350
-----------
739,675
-----------
Medical Equipment & Supplies -- 1.1%
*Angiotech Pharmaceuticals, Inc. ......................... 5,600 233,800
*Gasonics International Corp. ............................ 11,600 457,475
*PolyMedica Corp. ........................................ 5,900 255,175
-----------
946,450
-----------
Oil & Gas -- 5.3%
*Cal Dive International, Inc. ............................ 9,600 520,200
*Core Laboratories N.V. .................................. 18,200 527,800
*Global Industries Ltd. .................................. 97,400 1,838,426
*Hanover Compressor Co. .................................. 12,800 486,400
*Stone Energy Corp. ...................................... 5,900 352,525
*Syntroleum Corp. ........................................ 43,500 744,937
-----------
4,470,288
-----------
Oil Equipment & Services -- 6.1%
*BJ Services Co. ......................................... 14,100 881,250
*Marine Drilling Co., Inc. ............................... 55,900 1,491,831
*National-Oilwell, Inc. .................................. 7,900 259,713
*Oceaneering International, Inc. ......................... 32,900 625,100
*Rowan Cos., Inc. ........................................ 38,200 1,160,325
*Smith International, Inc. ............................... 9,500 691,719
-----------
5,109,938
-----------
Real Estate -- 0.5%
*CoStar Group, Inc. ...................................... 18,100 453,631
-----------
Semiconductors -- 9.6%
*Exar Corp. .............................................. 9,000 784,688
*Integrated Device Technology, Inc. ...................... 40,800 2,442,900
*Pericom Semiconductor Corp. ............................. 14,200 965,600
*PLX Technology, Inc. .................................... 41,300 1,713,950
*QLogic Corp. ............................................ 13,500 891,844
*Viasystems Group, Inc. .................................. 80,600 1,304,713
-----------
8,103,695
-----------
</TABLE>
91
<PAGE> 93
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Growth Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Software -- 6.9%
*Aspen Technology, Inc. .................................. 14,300 $ 550,550
*Broadbase Software, Inc. ................................ 34,400 1,053,500
*C-Bridge Internet Solutions.............................. 7,800 135,525
*Cysive, Inc. ............................................ 9,000 214,875
Digital Island, Inc. ..................................... 33,200 1,614,350
*Digital River, Inc. ..................................... 35,100 269,831
*Level 8 Systems, Inc. ................................... 20,600 433,888
*Manugistics Group, Inc. ................................. 14,800 691,900
*Mercator Software, Inc. ................................. 7,800 536,250
*Mercury Interactive Corp. ............................... 3,400 328,950
-----------
5,829,619
-----------
Steel -- 1.7%
*Grant Prideco, Inc. ..................................... 57,600 1,440,000
-----------
Waste Management -- 0.3%
*Waste Connections, Inc. ................................. 13,100 258,725
-----------
TOTAL COMMON STOCK (COST $67,921,126)................... 80,189,554
-----------
SHORT TERM INVESTMENTS -- 5.0%
Provident Institutional Funds -- TempCash................. 4,191,885 4,191,885
-----------
TOTAL SHORT TERM INVESTMENTS (COST $4,191,885).......... 4,191,885
-----------
TOTAL INVESTMENTS -- 100.0% (COST $72,113,011).......... 84,381,439
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.0%............... 34,850
-----------
NET ASSETS -- 100.0%
(Equivalent to $19.92 per share based on 4,236,806 shares
of capital stock outstanding)........................... $84,416,289
===========
NET ASSET VALUE, OFFERING, AND REDEMPTION PRICE PER SHARE
($84,416,289/4,236,806 shares outstanding)................ $ 19.92
===========
</TABLE>
* Non-Income producing.
See accompanying notes to financial statements.
92
<PAGE> 94
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Value Portfolio
2000 Semi-Annual Review
Market Street Investment Management Company
--------------------------------------------------------------------------------
The total return for the Market Street Fund All Pro Small Cap Value Portfolio
for the first half of 2000 was 1.80%. This return lagged the 3.50% return of the
Wilshire Small Value Index, the style benchmark we use to assess the performance
of the portfolio.
The following two sub-advisers to perform the day-to-day management of the
Portfolio. The two firms possess a proven small cap value orientation and
discipline.
<TABLE>
<CAPTION>
APPROXIMATE
MANAGER PORTFOLIO %
------- -----------
<S> <C>
Sterling Capital Management............................. 50%
Reams Asset Management.................................. 50%
Total Portfolio......................................... 100%
</TABLE>
Sterling Capital Management was added as a sub-adviser in the first quarter of
this year and Reams Asset Management assumed management in the last week of
December. Both firms worked quickly to reposition the Portfolio. The
sub-advisers decreased the Portfolio's exposure to retail merchandising,
increased exposure to manufacturing stocks, and increased banks given the
improved interest rate outlook for the U.S. The performance of the Portfolio in
the second quarter was strong and exceeded the Wilshire index by almost 200
basis points. However, the strong second quarter performance could not overcome
the relatively weak first quarter.
The largest sector holdings of the Portfolio include:
<TABLE>
<CAPTION>
SECTOR %
------ -----
<S> <C>
Manufacturing............................................... 16.3%
Banks....................................................... 9.3%
Medical Equipment & Supplies................................ 8.5%
Insurance................................................... 6.7%
Real Estate................................................. 6.4%
</TABLE>
The portfolio targets stable or improving businesses at low multiples of price
to earnings, price to book value, and price to cash flow. The investment
discipline used prohibits paying up for expensive stocks and targets inexpensive
stocks relative to their fundamentals. The portfolio's stocks trade at
significant discounts to their intrinsic worth. As investors pay more attention
to fundamentals, i.e. earnings, financial strength, and valuations, the small
cap value asset class should experience a long overdue rebound. We look forward
to your continued support and to our long-term goal of capital appreciation.
Sarah C. Lange, CFA
President
93
<PAGE> 95
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Value Portfolio
Statement of Net Assets, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 95.7%
Banks -- 9.3%
Bank United Corp., Class A................................ 3,900 $ 137,231
Colonial BancGroup, Inc. ................................. 11,600 111,650
Commercial Federal Corp. ................................. 12,800 199,200
Dime Bancorp, Inc. ....................................... 7,800 122,850
First Bell Bancorp, Inc. ................................. 4,800 73,200
*Golden State Bancorp, Inc. .............................. 11,100 199,800
Local Financial Corp. .................................... 13,600 113,475
OceanFirst Financial Corp. ............................... 7,400 136,437
Seacoast Financial Services Corp. ........................ 20,500 194,750
Sovereign Bancorp, Inc. .................................. 14,500 101,953
-----------
1,390,546
-----------
Broadcasting & Publishing -- 2.0%
Banta Corp. .............................................. 7,600 143,925
Hollinger International, Inc. ............................ 11,775 160,434
-----------
304,359
-----------
Building & Building Services -- 2.3%
*Jacobs Engineering Group, Inc. .......................... 5,400 176,512
*Toll Brothers, Inc. ..................................... 8,050 165,025
-----------
341,537
-----------
Building Materials -- 1.5%
Texas Industries, Inc. ................................... 3,125 90,234
York International Corp. ................................. 5,500 143,687
-----------
233,921
-----------
Business & Consumer Services -- 1.3%
Interim Services, Inc. ................................... 10,700 189,925
-----------
Chemicals & Allied Products -- 6.0%
Crompton Corp. ........................................... 18,700 229,075
*Cytec Industries, Inc. .................................. 12,000 296,250
Ferro Corp. .............................................. 7,800 163,800
*International Speciality................................. 9,200 52,325
Millennium Chemicals...................................... 8,500 156,719
-----------
898,169
-----------
Communications -- 1.0%
*Clearnet Communications, Inc., Class A................... 5,200 144,381
-----------
Computers -- 0.9%
*Bell & Howell Co. ....................................... 5,350 129,737
-----------
</TABLE>
94
<PAGE> 96
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Diversified -- 1.4%
Peoples Energy Corp. ..................................... 2,750 $ 89,031
Wallace Computer Services, Inc. .......................... 12,375 122,203
-----------
211,234
-----------
Drugs & Healthcare -- 0.5%
*Perrigo Co. .............................................. 11,200 70,700
-----------
Electronics -- 2.5%
Applied Power, Inc. Class A............................... 5,300 177,550
Harman International Industries, Inc. .................... 3,300 201,300
-----------
378,850
-----------
Entertainment -- 2.4%
Gaylord Entertainment Co. Class A......................... 9,125 192,195
True North Communications................................. 3,975 169,186
-----------
361,381
-----------
Finance -- 2.4%
Dain Rauscher Corp. ...................................... 3,375 222,750
Finova Group, Inc. ....................................... 5,500 71,500
John Nuveen Co. (The), Class A............................ 1,625 68,148
-----------
362,398
-----------
Finance - Investment & Other -- 2.0%
Waddell & Reed Financial, Inc. ........................... 9,391 308,126
-----------
Food & Food Distributors -- 5.2%
International Home Foods, Inc. ........................... 11,900 249,156
*Ralcorp Holdings, Inc. ................................... 11,100 135,975
*Suiza Foods Corp. ........................................ 6,100 298,137
Universal Foods Corp. .................................... 6,500 120,250
-----------
803,518
-----------
Home Furnishings/Housewares -- 2.8%
Bush Industries, Inc. Class A............................. 8,400 134,400
*Furniture Brands International, Inc. ..................... 9,430 142,629
*Mohawk Industries, Inc. .................................. 6,700 145,725
-----------
422,754
-----------
</TABLE>
95
<PAGE> 97
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Insurance -- 6.7%
Fidelity National Financial, Inc. ........................ 10,200 $ 186,788
Hilb, Rogal & Hamilton Co. ............................... 6,050 209,859
Horace Mann Educators Corp. .............................. 9,775 146,625
*Insurance Auto Auctions, Inc. ........................... 6,050 127,806
Stewart Information Services Corp. ....................... 5,725 83,728
White Mountains Insurance Group Ltd. ..................... 1,550 248,000
-----------
1,002,806
-----------
Machinery & Instrumentation -- 2.3%
Regal-Beloit Corp. ....................................... 7,800 124,313
Snap-On, Inc. ............................................ 7,600 214,700
-----------
339,013
-----------
Manufacturing -- 16.3%
Belden, Inc. ............................................. 8,300 212,688
Brady Corp. .............................................. 6,900 224,250
Clarcor, Inc. ............................................ 24,575 488,428
Crane Co. ................................................ 8,925 216,989
Griffon Corp. ............................................ 18,300 101,794
Hon Industries, Inc. ..................................... 9,200 216,200
Matthews International Corp. Class A...................... 2,300 66,700
*National R.V. Holdings, Inc. ............................ 4,500 47,250
National Service Industries, Inc. ........................ 3,500 68,250
*Nautica Enterprises, Inc. ............................... 9,950 106,341
*Northwest Pipe Co. ...................................... 5,200 61,750
Pittston Brink's Group.................................... 16,100 220,369
Quanex Corp. ............................................. 4,950 73,631
Rayonier, Inc. ........................................... 2,675 95,966
*SPS Technologies, Inc. .................................. 4,200 172,463
Standex International Corp. .............................. 4,700 75,200
-----------
2,448,269
-----------
Manufacturing Equipment -- 0.6%
Lawson Products, Inc. .................................... 3,800 93,575
-----------
</TABLE>
96
<PAGE> 98
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
Medical Equipment & Supplies -- 8.5%
*Acuson Corp. ............................................ 12,450 $ 168,075
Arrow International, Inc. ................................ 3,075 103,013
Dentsply International, Inc. ............................. 7,400 228,013
*Haemonetics Corp. ....................................... 17,000 357,000
Mentor Corp. ............................................. 7,850 213,422
Owens & Minor, Inc. Holding Co. .......................... 11,900 204,531
-----------
1,274,054
-----------
Oil & Gas -- 4.7%
Noble Affiliates, Inc. ................................... 4,800 178,800
Piedmont Natural Gas Co., Inc. ........................... 4,550 120,859
Santa Fe Snyder Corp. .................................... 23,500 267,313
*Varco International, Inc. ............................... 5,740 133,455
-----------
700,427
-----------
Oil Equipment & Services -- 1.6%
Coflexip SA ADR........................................... 3,925 237,463
-----------
Real Estate -- 6.4%
Amli Residential.......................................... 3,000 70,688
*Avatar Holding, Inc. .................................... 10,400 239,200
BRE Properties, Inc. Class A.............................. 5,825 168,197
Federal Realty Investment Trust........................... 2,400 48,000
First Industrial Realty Trust, Inc. ...................... 7,542 222,489
Great Lakes REIT, Inc. ................................... 5,000 85,000
Prentiss Properties Trust................................. 3,100 74,400
Storage USA, Inc. ........................................ 1,900 56,050
-----------
964,024
-----------
Retail Stores -- 1.9%
*Payless ShoeSource, Inc. ................................ 3,450 180,047
Regis Corp. .............................................. 8,200 102,500
-----------
282,547
-----------
Semiconductors -- 1.2%
Pioneer-Standard Electronics, Inc. ....................... 11,900 175,525
-----------
Transportation -- 2.0%
Arnold Industries, Inc. .................................. 24,300 293,119
-----------
TOTAL COMMON STOCK (COST $13,712,078)................... 14,362,358
-----------
</TABLE>
97
<PAGE> 99
--------------------------------------------------------------------------------
Market Street Fund, Inc.
The All Pro Small Cap Value Portfolio
Statement of Net Assets, June 30, 2000 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
SHORT TERM INVESTMENTS -- 5.9%
Provident Institutional Funds -- TempCash................. 892,367 $ 892,367
-----------
TOTAL SHORT TERM INVESTMENTS (COST $892,367)............ 892,367
-----------
TOTAL INVESTMENTS -- 101.6% (COST $14,604,445).......... 15,254,725
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.6%)............. (242,352)
-----------
NET ASSETS -- 100.0%
(Equivalent to $7.68 per share based on 1,955,923 shares
of capital stock outstanding)........................... $15,012,373
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($15,012,373/1,955,923 shares outstanding)................ $ 7.68
===========
</TABLE>
* Non-income producing
See accompanying notes to financial statements.
98
<PAGE> 100
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Statement of Operations for the Six Months Ended June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY
GROWTH MARKET BOND
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends................................................. $ 2,202,777 $ -- $ --
Interest.................................................. 347,147 3,296,759 1,326,246
Less: foreign taxes withheld............................ -- -- --
----------- ---------- -----------
Total Investment Income................................. 2,549,924 3,296,759 1,326,246
----------- ---------- -----------
EXPENSES:
Investment advisory fee................................... 454,404 133,927 63,950
Administration fee........................................ 125,182 47,398 16,163
Directors' fee............................................ 6,444 2,442 831
Transfer agent fee........................................ 3,210 1,865 1,324
Custodian fee............................................. 15,371 6,584 2,543
Legal fees................................................ 16,756 6,348 2,878
Audit fees................................................ 9,022 3,419 1,164
Printing.................................................. 19,978 7,570 2,577
Insurance................................................. 7,637 2,068 743
Miscellaneous............................................. 887 646 549
----------- ---------- -----------
658,891 212,267 92,722
Less: expenses waived by Advisor and/or reimbursed by
affiliated insurance company............................ -- -- --
----------- ---------- -----------
Total expenses.......................................... 658,891 212,267 92,722
----------- ---------- -----------
Net investment income (loss)............................ 1,891,033 3,084,492 1,233,524
----------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments............................................. 7,363,216 -- (1,475,910)
Foreign Currency related transactions................... -- -- --
----------- ---------- -----------
7,363,216 0 (1,475,910)
----------- ---------- -----------
Net change in unrealized appreciation (depreciation) from:
Investments............................................. (7,425,598) -- 1,306,440
Foreign currency related transactions................... -- -- --
----------- ---------- -----------
(7,425,598) -- 1,306,440
----------- ---------- -----------
Net gain (loss) on investments and foreign currency
transactions.......................................... (62,382) -- (169,470)
----------- ---------- -----------
Net increase (decrease) in net assets resulting from
operations............................................ $ 1,828,651 $3,084,492 $ 1,064,054
=========== ========== ===========
</TABLE>
* Commencement of operations was February 7, 2000.
See accompanying notes to financial statements.
100
<PAGE> 101
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Statement of Operations for the Six Months Ended June 30, 2000 -- (Concluded)
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ALL PRO ALL PRO ALL PRO ALL PRO
EQUITY LARGE LARGE SMALL SMALL
AGGRESSIVE SENTINEL 500 CAP CAP CAP CAP
MANAGED GROWTH INTERNATIONAL GROWTH INDEX* GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 281,220 $ 217,386 $ 1,310,357 $ 22,391 $1,869,787 $ 149,878 $ 222,026 $ 10,108 $ 98,334
1,212,471 172,315 48,983 28,939 158,511 55,695 29,005 177,479 28,561
-- -- (75,421) -- -- -- (180) -- --
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
1,493,691 389,701 1,283,919 51,330 2,028,298 205,573 250,851 187,587 126,895
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
139,816 132,776 313,824 58,279 365,791 151,444 82,017 315,786 57,085
30,918 30,334 37,010 10,696 134,196 19,120 10,361 25,330 5,606
1,591 1,544 1,902 545 6,259 969 531 1,521 284
1,579 1,564 1,684 1,228 2,929 1,370 1,223 1,556 1,140
5,416 6,505 22,377 5,164 18,045 5,013 8,348 8,887 7,298
4,137 4,014 4,944 1,418 16,272 2,519 1,381 3,954 739
2,228 2,161 2,662 763 8,762 1,357 744 2,129 398
4,932 4,786 5,895 1,691 19,401 3,003 1,647 4,715 882
1,612 1,381 1,833 266 107 308 311 138 135
596 592 614 532 775 558 532 591 515
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
192,825 185,657 392,745 80,582 572,537 185,661 107,095 364,607 74,082
-- -- -- (4,523) (145,780) (385) (1,884) -- (2,443)
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
192,825 185,657 392,745 76,059 426,757 185,276 105,211 364,607 71,639
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
1,300,866 204,044 891,174 (24,729) 1,601,541 20,297 145,640 (177,020) 55,256
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
1,084,480 12,056,500 5,275,481 5,883,260 470,873 1,929,169 (965,191) 6,668,496 (181,738)
-- -- (124,900) -- -- -- -- -- --
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
1,084,480 12,056,500 5,150,581 5,883,260 470,873 1,929,169 (965,191) 6,668,496 (181,738)
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
(764,243) 770,022 (6,459,957) (1,569,754) 7,143,422 (1,805,606) (887,231) (4,618,534) 448,602
-- -- -- -- -- -- -- -- --
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
(764,243) 770,022 (6,459,957) (1,569,754) 7,143,422 (1,805,606) (887,231) (4,618,534) 448,602
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
320,237 12,826,522 (1,309,376) 4,313,506 7,614,295 123,563 (1,852,422) 2,049,962 266,864
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------- ---------
$1,621,103 $13,030,566 $ (418,202) $ 4,288,777 $9,215,836 $ 143,860 $(1,706,782) $ 1,872,942 $ 322,120
========== =========== =========== =========== ========== =========== =========== =========== =========
</TABLE>
101
<PAGE> 102
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
MONEY AGGRESSIVE
GROWTH MARKET BOND MANAGED GROWTH INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income (loss)........... $ 1,891,033 $ 3,084,492 $ 1,233,524 $ 1,300,866 $ 204,044 $ 766,274
Net realized gain (loss) on investments
and foreign currency related
transactions.......................... 7,363,216 -- (1,475,910) 1,084,480 12,056,500 5,275,481
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency translations......... (7,425,598) -- 1,306,440 (764,243) 770,022 (6,459,957)
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............. 1,828,651 3,084,492 1,064,054 1,621,103 13,030,566 (418,202)
Distributions:
From net investment income............. (4,242,412) (3,084,492) (2,245,406) (2,365,140) (325,505) (1,001,935)
From net realized gains................ (18,946,927) -- -- (3,592,195) (5,142,813) (10,153,869)
Capital share transactions:
Net contributions from affiliated life
insurance companies................... (4,002,391) (16,868,878) (507,965) (652,622) 7,389,729 10,599,671
------------ ------------ ----------- ----------- ----------- -----------
Total increase in net assets.......... (25,363,079) (16,868,878) (1,689,317) (4,988,854) 14,951,977 (974,335)
NET ASSETS
Beginning of period...................... 302,261,636 116,887,438 38,182,265 73,985,832 62,512,346 88,795,565
------------ ------------ ----------- ----------- ----------- -----------
End of Period............................ $276,898,557 $100,018,560 $36,492,948 $68,996,978 $77,464,323 $87,821,230
============ ============ =========== =========== =========== ===========
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1999
MONEY AGGRESSIVE
GROWTH MARKET BOND MANAGED GROWTH INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income (loss)........... $ 4,242,412 $ 5,025,260 $ 2,245,406 $ 2,365,140 $ 325,505 $ 1,026,948
Net realized gain (loss) on investments
and foreign currency related
transactions.......................... 18,946,927 (8) (916,673) 3,592,195 5,142,814 10,128,857
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency translations......... (13,385,176) -- (2,503,249) (5,655,271) 3,132,350 8,869,544
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............. 9,804,163 5,025,252 (1,174,516) 302,064 8,600,669 20,025,349
Distributions:
From net investment income............. (1,058,688) (5,025,260) (506,981) (499,598) (293,724) (813,330)
From net realized gains................ (6,184,504) -- (398,338) (3,406,936) (7,283,996) (4,172,939)
Capital share transactions:
Net contributions from affiliated life
insurance companies................... (15,597,856) 25,434,525 3,416,178 9,784,991 4,994,083 2,393,275
------------ ------------ ----------- ----------- ----------- -----------
Total increase in net assets.......... (13,036,885) 25,434,517 1,336,343 6,180,521 6,017,032 17,432,355
NET ASSETS
Beginning of period...................... 315,298,521 91,452,921 36,845,922 67,805,311 56,495,315 71,363,209
------------ ------------ ----------- ----------- ----------- -----------
End of Period............................ $302,261,636 $116,887,438 $38,182,265 $73,985,832 $62,512,347 $88,795,564
============ ============ =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
102
<PAGE> 103
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Statements of Changes in Net Assets -- (Concluded)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS OR PERIOD ENDED JUNE 30, 2000
(UNAUDITED)
EQUITY ALL PRO ALL PRO ALL PRO ALL PRO
SENTINEL 500 LARGE CAP LARGE CAP SMALL CAP SMALL CAP
GROWTH INDEX(1) GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income (loss).............. $ (24,729) $ 1,601,541 $ 20,297 $ 145,640 $ (177,020) $ 55,256
Net realized gain (loss) on investments
and foreign currency related
transactions............................. 5,883,260 470,873 1,929,169 (965,191) 6,668,496 (181,738)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations.................... (1,569,753) 7,143,422 (1,805,606) (887,231) (4,618,534) 448,602
----------- ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations................ 4,288,778 9,215,836 143,860 (1,706,782) 1,872,942 322,120
Distributions:
From net investment income................ (1,235,191) -- (819,068) (223,008) (1,190,602) (37,204)
From net realized gains................... (492,081) -- (636,988) -- (203,792) --
Capital share transactions:
Net contributions from affiliated life
insurance companies...................... (2,866,251) 387,836,495 13,739,600 2,017,555 38,737,260 3,427,151
----------- ------------ ----------- ----------- ----------- -----------
Total increase (decrease) in net
assets................................. (304,745) 397,052,331 12,427,404 87,765 39,215,808 3,712,067
NET ASSETS
Beginning of period......................... 21,297,375 -- 37,961,019 24,318,611 45,200,481 11,300,306
----------- ------------ ----------- ----------- ----------- -----------
End of Period............................... $20,992,630 $397,052,331 $50,388,423 $24,406,376 $84,416,289 $15,012,373
=========== ============ =========== =========== =========== ===========
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1999
---------------------------------------------------------------------------------
EQUITY ALL PRO ALL PRO ALL PRO ALL PRO
SENTINEL 500 LARGE CAP LARGE CAP SMALL CAP SMALL CAP
GROWTH INDEX GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income (loss)............... $ 10,839 -- $ (22,202) $ 223,008 $ (113,907) $ 37,204
Net realized gain (loss) on investments and
foreign currency related transactions..... 1,716,433 -- 1,617,492 349,009 2,250,696 (1,022,439)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency translations..................... 3,864,968 -- 4,532,937 (614,959) 15,609,185 316,627
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations................. 5,592,240 -- 6,128,227 (42,942) 17,745,974 (668,608)
Distributions:
From net investment income................. (23,574) -- (3,102) (105,080) -- (17,055)
From net realized gains.................... (537,394) -- -- -- -- --
Capital share transactions:
Net contributions from affiliated life
insurance companies....................... 4,099,126 -- 17,529,239 8,850,732 17,769,243 3,912,710
----------- ----------- ----------- ----------- ----------- -----------
Total increase in net assets.............. 9,130,398 -- 23,654,364 8,702,710 35,515,217 3,227,047
NET ASSETS
Beginning of period.......................... 12,166,979 -- 14,306,655 15,615,901 9,685,265 8,073,259
----------- ----------- ----------- ----------- ----------- -----------
End of Period................................ $21,297,377 -- $37,961,019 $24,318,611 $45,200,482 $11,300,306
=========== =========== =========== =========== =========== ===========
</TABLE>
(1) Commencement of operations was February 7, 2000.
See accompanying notes to financial statements.
103
<PAGE> 104
--------------------------------------------------------------------------------
Market Street Funds, Inc.
Financial Highlights
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the periods:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
------------------------------------------------------------------------------------------------------------------
01/01/00
TO 01/01/99 01/01/98 01/01/97 01/01/96 01/01/95
06/30/00 TO TO TO TO TO
(UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $18.94 $18.82 $19.46 $18.10 $16.36 $14.00
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income......................... .12 .27 .27 .35 .46 .47
Net realized and unrealized gain (loss) on
investments.................................. .02 .28 1.97 3.49 2.54 3.41
------- ------- ------- ------- ------- -------
Total from investment operations........... .14 .55 2.24 3.84 3.00 3.88
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends to shareholders from net investment
income....................................... (.26) (.06) (.29) (.38) (.48) (.46)
Dividends to shareholders from net capital
gains........................................ (1.19) (.37) (2.59) (2.10) (.78) (1.06)
------- ------- ------- ------- ------- -------
Total distributions........................ (1.45) (.43) (2.88) (2.48) (1.26) (1.52)
------- ------- ------- ------- ------- -------
Net asset value, end of period................ $17.63 $18.94 $18.82 $19.46 $18.10 $16.36
======= ======= ======= ======= ======= =======
Total return............................... .78%(2) 2.98% 13.70% 24.32% 19.58% 30.39%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $(000).............. 276,899 302,262 315,299 267,389 198,948 161,899
Ratios of expenses to average net assets(1)
(annualized)................................. .47% .48% .46% .43% .50% .61%
Ratios of net investment income to average net
assets (annualized).......................... 1.34% 1.35% 1.53% 2.01% 2.80% 3.20%
Portfolio turnover............................ 22% 46% 30% 108% 72% 61%
------------------------------------------------------------------------------------------------------------------
</TABLE>
(1.) Expense ratios for the Growth Portfolio before reimbursement of expense by
affiliated insurance company for the period ended June 30, 2000, and the
years ended December 31, 1999, 1998, 1997, 1996 and 1995 were as follows:
0.47% (annualized), 0.48%, 0.47%, 0.43%, 0.50% and 0.61% respectively.
(2.) Total returns for periods less than one year are not annualized.
See accompanying notes to financial statements.
104
<PAGE> 105
--------------------------------------------------------------------------------
Market Street Funds, Inc.
Financial Highlights -- Continued
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the periods:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
------------------------------------------------------------------------------------------------------------------
01/01/00
TO 01/01/99 01/01/98 01/01/97 01/01/96 01/01/95
06/30/00 TO TO TO TO TO
(UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income......................... .03 .05 .05 .05 .05 .05
------ ------ ------ ------ ------ ------
Total from investment operations.......... .03 .05 .05 .05 .05 .05
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends to shareholders from net investment
income...................................... (.03) (.05) (.05) (.05) (.05) (.05)
------ ------ ------ ------ ------ ------
Total distributions....................... (.03) (.05) (.05) (.05) (.05) (.05)
------ ------ ------ ------ ------ ------
Net asset value, end of period................ $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
Total return.............................. 2.90%(2) 4.91% 5.29% 5.33% 5.15% 5.61%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $(000).............. 100,019 116,887 91,453 64,339 54,197 34,165
Ratios of expenses to average net assets(1)
(annualized)................................ .40% .40% .40% .39% .44% .50%
Ratios of net investment income to average net
assets (annualized)......................... 5.76% 4.81% 5.15% 5.21% 5.03% 5.47%
------------------------------------------------------------------------------------------------------------------
</TABLE>
(1.) Expense ratios for the Money Market Portfolio before reimbursement of
expense by affiliated insurance company for period ended June 30, 2000, and
the years ended December 31, 1999, 1998, 1997, 1996 and 1995 were as
follows: 0.40% (annualized), 0.40%, 0.42%, 0.39%, 0.44% and 0.50%
respectively.
(2.) Total returns for periods less than one year are not annualized.
See accompanying notes to financial statements.
105
<PAGE> 106
--------------------------------------------------------------------------------
Market Street Funds, Inc.
Financial Highlights -- Continued
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the periods:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND PORTFOLIO
----------------------------------------------------------------------------------------------------------------------
01/01/00
TO 01/01/99 01/01/98 01/01/97 01/01/96 01/01/95
06/30/00 TO TO TO TO TO
(UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $10.58 $11.22 $10.98 $10.67 $11.00 $ 9.73
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............................. .35 .62 .63 .64 .63 .65
Net realized and unrealized gain (loss) on
investments...................................... (.06) (.99) .25 .33 (.34) 1.27
------ ------ ------ ------ ------ ------
Total from investment operations............... .29 (.37) .88 .97 .29 1.92
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends to shareholders from net investment
income........................................... (.62) (.15) (.64) (.66) (.62) (.65)
Dividends to shareholders from net capital
gains............................................ (.00) (.12) (.00) (.00) (.00) (.00)
------ ------ ------ ------ ------ ------
Total distributions............................ (.62) (.27) (.64) (.66) (.62) (.65)
------ ------ ------ ------ ------ ------
Net asset value, end of period.................... $10.25 $10.58 $11.22 $10.98 $10.67 $11.00
====== ====== ====== ====== ====== ======
Total return................................... 2.95%(2) (3.31)% (8.22)% 9.50% 2.86% 20.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $(000).................. 36,493 38,182 36,846 23,350 17,087 14,402
Ratios of expenses to average net assets(1)
(annualized)..................................... .51% .52% .53% .57% .56% .60%
Ratios of net investment income to average net
assets (annualized).............................. 6.75% 6.19% 6.03% 6.24% 6.08% 6.36%
Portfolio turnover................................ 107% 202% 163% 105% 133% 206%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1.) Expense ratios for the Bond Portfolio before reimbursement of expense by
affiliated insurance company for the period ended June 30, 2000, and the
years ended December 31, 1999, 1998, 1997, 1996 and 1995 were as follows:
0.51% (annualized), 0.52%, 0.55%, 0.57%, 0.56% and 0.60% respectively.
(2.) Total returns for periods less than one year are not annualized.
See accompanying financial statements.
106
<PAGE> 107
--------------------------------------------------------------------------------
Market Street Funds, Inc.
Financial Highlights -- Continued
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the periods:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MANAGED PORTFOLIO
----------------------------------------------------------------------------------------------------------------------
01/01/00
TO 01/01/99 01/01/98 01/01/97 01/01/96 01/01/95
06/30/00 TO TO TO TO TO
(UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $16.79 $17.68 $17.06 $14.68 $14.19 $11.94
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............................. .30 .54 .54 .54 .51 .55
Net realized and unrealized gain (loss) on
investments...................................... .07 (.41) 1.45 2.49 1.07 2.28
------ ------ ------ ------ ------ ------
Total from investment operations............... .37 .13 1.99 3.03 1.58 2.83
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends to shareholders from net investment
income........................................... (.54) (.13) (.55) (.53) (.51) (.57)
Dividends to shareholders from net capital
gains............................................ (.81) (.89) (.82) (.12) (.58) (.01)
------ ------ ------ ------ ------ ------
Total distributions............................ (1.35) (1.02) (1.37) (.65) (1.09) (.58)
------ ------ ------ ------ ------ ------
Net asset value, end of period.................... $15.81 $16.79 $17.68 $17.06 $14.68 $14.19
====== ====== ====== ====== ====== ======
Total return................................... 2.41%(2) .75% 12.54% 21.23% 11.88% 24.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $(000).................. 68,997 73,986 67,805 56,068 43,431 36,002
Ratios of expenses to average net assets(1)
(annualized)..................................... .55% .57% .57% .58% .60% .66%
Ratios of net investment income to average net
assets (annualized).............................. 3.72% 3.25% 3.22% 3.47% 3.68% 4.22%
Portfolio turnover................................ 93% 156% 203% 99% 106% 130%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1.) Expense ratios for the Managed Portfolio before reimbursement of expense by
affiliated insurance company for the period ended June 30, 2000, and the
years ended December 31, 1999, 1998, 1997, 1996 and 1995 were as follows:
0.55% (annualized), 0.57%, 0.58%, 0.58%, 0.60% and 0.66%, respectively.
(2.) Total returns for periods less than one year are not annualized.
See accompanying financial statements.
107
<PAGE> 108
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Financial Highlights -- Continued
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the periods:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
----------------------------------------------------------------------------------------------------------------------
01/01/00
TO 01/01/99 01/01/98 01/01/97 01/01/96 01/01/95
06/30/00 TO TO TO TO TO
(UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $21.97 $21.91 $22.19 $18.52 $17.38 $15.45
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............................. .06 .11 .11 .17 .17 .20
Net realized and unrealized gain on investments... 4.10 2.89 1.50 3.72 3.03 1.86
------ ------ ------ ------ ------ ------
Total from investment operations............... 4.16 3.00 1.61 3.89 3.20 2.06
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends to shareholders from net investment
income........................................... (.11) (.11) (.18) (.18) (.19) (.00)
Dividends to shareholders from net capital
gains............................................ (1.81) (2.83) (1.71) (.04) (1.87) (.13)
------ ------ ------ ------ ------ ------
Total distributions............................ (1.92) (2.94) (1.89) (.22) (2.06) (.13)
------ ------ ------ ------ ------ ------
Net asset value, end of period.................... $24.21 $21.97 $21.91 $22.19 $18.52 $17.38
====== ====== ====== ====== ====== ======
Total return................................... 20.78%(2) 15.96% 7.99% 21.21% 21.00% 13.48%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $(000).................. 77,464 62,513 56,495 48,574 34,098 23,822
Ratios of expenses to average net assets(1)
(annualized)..................................... .54% .57% .61% .63% .68% .76%
Ratios of net investment income to average net
assets (annualized).............................. .59% .59% .56% .95% 1.14% 1.32%
Portfolio turnover................................ 43% 46% 41% 37% 47% 89%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1.) Expense ratios for the Aggressive Growth Portfolio before reimbursement of
expense by affiliated insurance company for the period ended June 30, 2000,
and the years ended December 31, 1999, 1998, 1997, 1996 and 1995 were as
follows: 0.54% (annualized), 0.57%, 0.62%, 0.63%, 0.68% and 0.76%
respectively.
(2.) Total returns for periods less than one year are not annualized.
See accompanying notes to financial statements.
108
<PAGE> 109
--------------------------------------------------------------------------------
Market Street Funds, Inc.
Financial Highlights -- Continued
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the periods:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL PORTFOLIO
----------------------------------------------------------------------------------------------------------------------
01/01/00
TO 01/01/99 01/01/98 01/01/97 01/01/96 01/01/95
06/30/00 TO TO TO TO TO
(UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $16.68 $13.85 $13.61 $13.41 $12.86 $11.63
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............................. .13 .19 .15 .11 .11 .16
Net realized and unrealized gain (loss) on
investments...................................... (.23) 3.61 1.14 1.08 1.23 1.45
------ ------ ------ ------ ------ ------
Total from investment operations............... (.10) 3.80 1.29 1.19 1.34 1.61
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends to shareholders from net investment
income........................................... (.19) (.16) (.10) (.11) (.16) (.07)
Dividends to shareholders from net capital
gains............................................ (1.91) (.81) (.95) (.88) (.63) (.31)
------ ------ ------ ------ ------ ------
Total distributions............................ (2.10) (.97) (1.05) (.99) (.79) (.38)
------ ------ ------ ------ ------ ------
Net asset value, end of period.................... $14.48 $16.68 $13.85 $13.61 $13.41 $12.86
====== ====== ====== ====== ====== ======
Total return................................... (.41)%(2) 29.33% 10.13% 9.66% 10.89% 14.31%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $(000).................. 87,821 88,796 71,363 62,513 50,955 36,642
Ratios of expenses to average net assets(1)
(annualized)..................................... .94% .98% 1.00% 1.02% 1.05% 1.15%
Ratios of net investment income to average net
assets (annualized).............................. 1.83% 1.32% 1.18% 1.13% 1.08% 1.21%
Portfolio turnover................................ 20% 41% 37% 37% 35% 45%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1.) Expense ratios for the International Portfolio before reimbursement of
expense by affiliated insurance company for period ended June 30, 2000, and
the years ended December 31, 1999, 1998, 1997, 1996 and 1995 were as
follows: 0.94% (annualized), 0.98%, 1.00%, 1.02%, 1.05% and 1.15%,
respectively.
(2.) Total returns for periods less than one year are not annualized.
See accompanying notes to financial statements.
109
<PAGE> 110
--------------------------------------------------------------------------------
Market Street Funds, Inc.
Financial Highlights -- Continued
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the periods:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SENTINEL GROWTH PORTFOLIO
---------------------------------------------------------------------------------------------------------------------
01/01/00
TO 01/01/99 01/01/98 01/01/97 03/18/96(2)
06/30/00 TO TO TO TO
(UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........................ $17.79 $13.43 $14.59 $11.14 $10.00
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income....................................... (.02) .01 .03 .04 .05
Net realized and unrealized gain (loss) on investments...... 3.96 4.97 1.76 3.47 1.09
------ ------ ------ ------ ------
Total from investment operations......................... 3.94 4.98 1.79 3.51 1.14
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends to shareholders from net investment income........ (.01) (.03) (.04) (.05) (.00)
Dividends to shareholders from net capital gains............ (1.43) (.59) (2.91) (.01) (.00)
------ ------ ------ ------ ------
Total distributions...................................... (1.44) (.62) (2.95) (.06) (.00)
------ ------ ------ ------ ------
Net asset value, end of period.............................. $20.29 $17.79 $13.43 $14.59 $11.14
====== ====== ====== ====== ======
Total return............................................. 23.80%(3) 38.80% 15.98% 31.58% 11.40%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $(000)............................ 20,993 21,297 12,167 8,362 5,664
Ratios of expenses to average net assets(1) (annualized).... .63% .71% .82% .90% .90%
Ratios of net investment income to average net assets
(annualized)............................................... (.20)% 07% .23% .36% .57%
Portfolio turnover.......................................... 139% 110% 87% 155% 75%
---------------------------------------------------------------------------------------------------------------------
</TABLE>
(1.) Expense ratios for the Sentinel Growth Portfolio before reimbursement of
expense by affiliated insurance company for the period ended June 30, 2000,
the years ended December 31, 1999, 1998 and 1997 and the period ended
December 31, 1996 were as follows: 0.67% (annualized), 0.71%, 0.83%, 1.35%
and 1.51% (annualized), respectively.
(2.) Commencement of operations.
(3.) Total returns for periods less than one year are not annualized.
See accompanying notes to financial statements.
110
<PAGE> 111
--------------------------------------------------------------------------------
Market Street Funds, Inc.
Financial Highlights -- Continued
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the periods:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY 500 INDEX PORTFOLIO
----------------------------------------------------------------------------------------
02/07/00(2)
TO
06/30/00
(UNAUDITED)
----------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period........................ $10.00
-------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income....................................... .04
Net realized and unrealized gain (loss) on investments...... .20
-------
Total from investment operations......................... .24
-------
LESS DISTRIBUTIONS:
Dividends to shareholders from net investment income........ (.00)
Dividends to shareholders from net capital gains............ (.00)
-------
Total distributions...................................... (.00)
-------
Net asset value, end of period.............................. $ 10.24
=======
Total return............................................. 2.40%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $(000)............................ 397,052
Ratios of expenses to average net assets(1) (annualized).... .28%
Ratios of net investment income to average net assets
(annualized)............................................... 1.05%
Portfolio turnover.......................................... 3%
----------------------------------------------------------------------------------------
</TABLE>
(1.) Expense ratios for the Equity 500 Index Portfolio before reimbursement of
expense by affiliated insurance company for the period ended June 30, 2000
was as follows: 0.38% (annualized).
(2.) Commencement of operations.
(3.) Total returns for periods less than one year are not annualized.
See accompanying notes to financial statements.
111
<PAGE> 112
--------------------------------------------------------------------------------
Market Street Funds, Inc.
Financial Highlights -- Continued
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the periods:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ALL PRO ALL PRO
LARGE CAP LARGE CAP
GROWTH VALUE
PORTFOLIO PORTFOLIO
----------------------------------------------------------------------------------------------------------------------
01/01/00 01/01/00
TO 01/01/99 05/04/98(2) TO 01/01/99 05/04/98(2)
06/30/00 TO TO 06/30/00 TO TO
(UNAUDITED) 12/31/99 12/31/98 (UNAUDITED) 12/31/99 12/31/98
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $14.77 $11.77 $10.00 $ 9.98 $ 9.90 $10.00
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................... .01 (.01) .00 .05 .09 .07
Net realized and unrealized gain (loss) on
investments................................... (.04) 3.01 1.77 (.72) .06 (.17)
------ ------ ------ ------ ------ ------
Total from investment operations............ (.03) 3.00 1.77 (.67) .15 (.10)
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends to shareholders from net investment
income........................................ (.00) (.00) (.00) (.09) (.07) (.00)
Dividends to shareholders from net capital
gains......................................... (.58) (.00) (.00) (.00) (.00) (.00)
------ ------ ------ ------ ------ ------
Total distributions......................... (.58) (.00) (.00) (.09) (.07) (.00)
------ ------ ------ ------ ------ ------
Net asset value, end of period................. $14.16 $14.77 $11.77 $ 9.22 $ 9.98 $ 9.90
====== ====== ====== ====== ====== ======
Total return................................ (.26)%(3) 25.52% 17.70%(3) (6.74)% 1.49% (1.00)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $(000)............... 50,388 37,961 14,307 24,406 24,319 15,616
Ratios of expenses to average net assets(1)
(annualized).................................. .86% .89% .90% .90% .91% .95%
Ratios of net investment income to average net
assets (annualized)........................... .09% (.09)% .04% 1.24% 1.07% 1.31%
Portfolio turnover............................. 28% 83% 64% 63% 64% 39%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1.) Expense ratios for the All Pro Large Cap Growth Portfolio before
reimbursement of expense by affiliated insurance company for the period
ended June 30, 2000, the year ended December 31, 1999 and the period ended
December 31, 1998 were as follows: 0.86% (annualized), 0.89%, and 0.92%
(annualized), respectively. Expense ratios for the All Pro Large Cap Value
Portfolio before reimbursement of expense by affiliated insurance company
for the period ended June 30, 2000, the year ended December 31, 1999, and
the period ended December 31, 1998 were as follows: 0.91% (annualized),
0.91% and 0.97% (annualized), respectively.
(2.) Commencement of operations.
(3.) Total returns for periods less than one year are not annualized.
See accompanying notes to financial statements.
112
<PAGE> 113
--------------------------------------------------------------------------------
Market Street Funds, Inc.
Financial Highlights -- Continued
--------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout the periods:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ALL PRO ALL PRO
SMALL CAP SMALL CAP
GROWTH VALUE
PORTFOLIO PORTFOLIO
----------------------------------------------------------------------------------------------------------------------
01/01/00 01/01/00
TO 01/01/99 05/04/98(2) TO 01/01/99 05/04/98(2)
06/30/00 TO TO 06/30/00 TO TO
(UNAUDITED) 12/31/99 12/31/98 (UNAUDITED) 12/31/99 12/31/98
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $18.83 $ 9.80 $10.00 $ 7.57 $ 8.25 $10.00
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)................... (.04) (.04) (.01) .03 .02 .02
Net realized and unrealized gain (loss) on
investments................................... 1.76 9.07 (.19) .10 (.68) (1.77)
------ ------ ------ ------ ------ ------
Total from investment operations............ 1.72 9.03 (.20) .13 (.66) (1.75)
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends to shareholders from net investment
income........................................ (.00) (.00) (.00) (.02) (.02) (.00)
Dividends to shareholders from net capital
gains......................................... (.63) (.00) (.00) (.00) (.00) (.00)
------ ------ ------ ------ ------ ------
Total distributions......................... (.63) (.00) (.00) (.02) (.02) (.00)
------ ------ ------ ------ ------ ------
Net asset value, end of period................. $19.92 $18.83 $ 9.80 $ 7.68 $ 7.57 $ 8.25
====== ====== ====== ====== ====== ======
Total return................................ 9.28%(3) 92.14% (2.00)%(3) 1.80%(3) (8.05)% (17.50)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $(000)............... 84,416 45,200 9,685 15,012 11,300 8,073
Ratios of expenses to average net assets(1)
(annualized).................................. 1.06% 1.11% 1.24% 1.13% 1.20% 1.28%
Ratios of net investment income to average net
assets (annualized)........................... (.51)% (.57)% (.14)% .87% .39% .48%
Portfolio turnover............................. 52% 114% 82% 93% 114% 38%
</TABLE>
(1.) Expense ratios for the All Pro Small Cap Growth Portfolio before
reimbursement of expense by affiliated insurance company for the period
ended June 30, 2000, the year ended December 31, 1999 and the period ended
December 31, 1998 were as follows: 1.06% (annualized), 1.11%, and 1.25%
(annualized), respectively. Expense ratios for the All Pro Small Cap Value
Portfolio before reimbursement of expense by affiliated insurance company
for the period ended June 30, 2000, the year ended December 31, 1999, and
the period ended December 31, 1998 were as follows: 1.17% (annualized),
1.21% and 1.36% (annualized), respectively.
(2.) Commencement of operations.
(3.) Total returns for periods less than one year are not annualized.
See accompanying notes to financial statements.
113
<PAGE> 114
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Notes to Financial Statements, June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
1. ORGANIZATION
The Market Street Fund, Inc. (Fund) is registered as an open-end diversified
management company under the Investment Company Act of 1940, as amended. As a
"series" type of mutual fund, the Fund issues separate classes (or series) of
stock currently consisting of the Growth Portfolio, Money Market Portfolio, Bond
Portfolio, Managed Portfolio, Aggressive Growth Portfolio, International
Portfolio, Sentinel Growth Portfolio, Equity 500 Index Portfolio, All Pro Large
Cap Growth Portfolio, All Pro Large Cap Value Portfolio, All Pro Small Cap
Growth Portfolio, and All Pro Small Cap Value Portfolio. The Equity 500 Index
portfolio commenced operations on February 7, 2000. The Fund serves as an
investment medium for modified premium and flexible premium adjustable variable
life insurance policies and individual flexible premium deferred variable
annuity contracts (Policies) issued by Provident Mutual Life Insurance Company
(PMLIC) and for flexible premium deferred variable annuity contracts issued by
Provident Mutual Life and Annuity Company of America (PLACA) and policies issued
by National Life Insurance Company of Vermont (NLICV). The Fund also serves as
the investment medium for single premium and scheduled premium variable life
insurance policies which are no longer being issued.
2. ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by each
Fund in preparation of its financial statements. The preparation of financial
statements in accordance with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
Valuation of Investments
Bonds are carried at market value based on the last bid price on a national
securities exchange or on quoted prices from a third-party pricing service.
Investments in common and preferred stocks primarily traded on recognized U.S.
or foreign securities exchanges are valued at the close of regular trading on
the New York Stock Exchange, currently 4:00 p.m. New York time on the last
business day of the period, or, if there was no sale, at the last bid price on
that day. Short-term investments with maturities of less than 90 days and Money
Market Portfolio investments are valued at amortized cost which approximates
market value.
Investments
Security transactions are accounted for on the trade date. The cost of
investment securities sold is determined by use of the specific identification
method for both financial reporting and income tax purposes. Interest income is
recorded on the accrual basis; dividend income is recorded on the ex-dividend
date.
Dollar Rolls
The Bond and Managed Portfolios may enter into dollar rolls in which the
Portfolio sells securities for delivery and simultaneously contracts to
repurchase the same security at a fixed price on a specified future date. During
the roll period the Portfolio forgoes accrued interest paid on the securities.
The Portfolio will be compensated by the interest earned on the cash proceeds of
the initial sale (which are invested in short-term in-
114
<PAGE> 115
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Notes to Financial Statements, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
vestments) and by the lower repurchase price at the future date (the "drop").
The drop, which is recorded as deferred income, is amortized over the period
between the trade date and the settlement date. All realized gains are recorded
at the beginning of each roll. A portfolio engages in dollar rolls for the
purpose of enhancing its yield. Dollar Rolls involve a risk of loss if the value
of the security to be repurchased declines prior to settlement date, which risk
is in addition to the risk of decline in the value of a Portfolio's other
assets. The balance of dollar rolls outstanding during the period ended June 30,
2000 was $2,258,438 in the Bond Portfolio and $7,323,125 in the Managed
Portfolio.
Foreign Currency Translations
Foreign currency amounts are translated into U.S. Dollars on the following
bases:
(i) Market value of investment securities, assets and liabilities, at the
daily rate of exchange;
(ii) Purchases and sales of investment securities, at the rate of exchange
prevailing on the respective dates of such transactions. Exchange gains or
losses are recognized upon settlement;
(iii) Income and expenses, at the rate of exchange prevailing on the
respective dates of such transactions. Exchange gains or losses are
recognized upon ultimate receipt or disbursement.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of U.S. dollar denominated
transactions as a result of, among other factors, the lack of governmental
supervision and regulation of foreign securities markets and the possibility of
political or economic instability.
The Fund does not isolate that portion of the results of operations derived from
changes in foreign exchange rates on investments from the fluctuations arising
from changes in market prices of securities held. Such fluctuations are included
with the net realized and unrealized gain or loss from investments.
Dividends to Shareholders
Dividends of investment income of the Money Market Portfolio are declared daily
and paid monthly. The Growth Portfolio, Bond Portfolio, Managed Portfolio,
Aggressive Growth Portfolio, International Portfolio, Sentinel Growth Portfolio,
Equity 500 Index, Large Cap Growth Portfolio, Large Cap Value Portfolio, Small
Cap Growth Portfolio, and Small Cap Value Portfolio declare and pay dividends of
investment income annually. For all Portfolios, distributions of capital gains
are declared and paid annually.
Federal Income Taxes
No provision is made for Federal taxes as it is the Fund's intention to have
each Portfolio continue to qualify as a regulated investment company and to make
the requisite distributions to its shareholders which will be sufficient to
relieve it from Federal income taxes.
3. INVESTMENT ADVISORY FEES AND RELATED PARTY TRANSACTIONS
Investment advisory agreements have been approved, whereby Sentinel Advisors
Company (SAC), a Vermont General Partnership, is adviser for the Growth, Money
Market, Bond, Managed,
115
<PAGE> 116
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Notes to Financial Statements, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
Aggressive Growth and Sentinel Growth Portfolios. With respect to the Growth
Portfolio, SAC is compensated monthly at an effective annual rate of 0.50% of
the first $20 million of the average daily net assets of the portfolio, 0.40% of
the next $20 million and 0.30% of net assets in excess of $40 million. SAC is
compensated monthly at an effective annual rate of 0.25% of the average daily
net assets of the Money Market Portfolio. With respect to the Bond Portfolio,
SAC is compensated monthly at the effective annual rate of 0.35% of the first
$100 million of the average daily net assets of the portfolio and 0.30% of net
assets in excess of $100 million. With respect to the Managed Portfolio, SAC is
compensated monthly at the effective annual rate of 0.40% of the first $100
million of the average daily net assets of the portfolio and 0.35% of net assets
in excess of $100 million. With respect to the Aggressive Growth Portfolio, SAC
is compensated monthly at the effective annual rate of 0.50% of the first $20
million of the average daily net assets of the portfolio, 0.40% of the next $20
million and 0.30% of net assets in excess of $40 million. With respect to the
Sentinel Growth Portfolio, SAC is compensated monthly at an effective annual
rate of 0.50% of the first $20 million of the average daily net assets of the
portfolio, 0.40% of the next $20 million and 0.30% of the net assets in excess
of $40 million. Market Street Investment Management Co. (MSIM) is the adviser
for the International, Equity 500 Index, All Pro Large Cap Growth, All Pro Large
Cap Value, All Pro Small Cap Growth, and All Pro Small Cap Value. With respect
to the All Pro Large Cap Growth Portfolio and the All Pro Large Cap Value
Portfolio, MSIM is compensated monthly at an effective annual rate of 0.70% of
the average daily net assets. With respect to the All Pro Small Cap Growth
Portfolio and the All Pro Small Cap Value Portfolio, MSIM is compensated monthly
at an effective annual rate of 0.90% of the average daily net assets. With
respect to the International Portfolio, MSIM is compensated monthly at an
effective annual rate of 0.75% of the first $500 million of the average daily
net assets of the portfolio and 0.60% of assets in excess of $500 million. With
respect to the Equity 500 Index Portfolio, MSIM is compensated monthly at an
effective annual rate of 0.24% of the average daily net assets of the portfolio.
PMLIC agrees to reimburse the Growth, Money Market, Bond, Managed, Aggressive
Growth, All Pro Large Cap Growth, All Pro Large Cap Value, All Pro Small Cap
Growth, and All Pro Small Cap Value Portfolios for operating expenses, excluding
investment advisory fees, and costs of litigation and indemnification not
covered by insurance, in excess of an annual rate of 0.40% of the average daily
net asset values. The International Portfolio is reimbursed for such expenses in
excess of an annual rate of 0.75% of the average daily net asset value. The
Equity 500 Index portfolio is reimbursed for such expenses in excess of an
annual rate of 0.04% of the average daily net asset value. NLICV agrees to
reimburse Sentinel Growth Portfolio for operating expenses, excluding investment
advisory fees and costs of litigation and indemnification not covered by
insurance, in excess of an annual rate of .40% of the average net asset values.
116
<PAGE> 117
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Notes to Financial Statements, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
4. NET ASSETS
At June 30, 2000, the Portfolios' net assets consisted of:
<TABLE>
<CAPTION>
MONEY
GROWTH MARKET BOND MANAGED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net contribution from shareholders........... $225,602,908 $100,018,626 $38,082,984 $ 59,185,159
Undistributed net investment income.......... 1,891,033 -- 1,233,524 1,300,866
Undistributed net realized gain.............. 7,363,216 -- -- 1,084,480
Accumulated loss on investment
transactions................................ -- (66) (2,392,584) --
Net unrealized appreciation (depreciation) on
investments and foreign currency............ 42,041,400 -- (430,976) 7,426,473
------------ ------------ ----------- ------------
$276,898,557 $100,018,560 $36,492,948 $ 68,996,978
============ ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE SENTINEL EQUITY
GROWTH INTERNATIONAL GROWTH 500 INDEX
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net contribution from shareholders........... $ 54,891,916 $ 74,452,481 $11,154,457 $387,836,496
Undistributed net investment income (loss)... 204,044 766,274 (24,729) 1,601,541
Undistributed net realized gain.............. 12,056,500 5,204,491 5,883,260 470,873
Accumulated loss on investment
transactions................................ -- -- -- --
Net unrealized appreciation (depreciation) on
investments and foreign currency............ 10,311,863 7,397,984 3,979,642 7,143,421
------------ ------------ ----------- ------------
$ 77,464,323 $ 87,821,230 $20,992,630 $397,052,331
============ ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
ALL PRO ALL PRO ALL PRO ALL PRO
LARGE CAP LARGE CAP SMALL CAP SMALL CAP
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net contribution from shareholders........... $ 43,186,276 $ 26,283,660 $65,697,966 $ 16,160,785
Undistributed net investment income (loss)... 20,297 145,640 (177,020) 55,256
Undistributed net realized gain.............. 1,737,146 -- 6,626,915 --
Accumulated loss on investment
transactions................................ -- (1,230,730) -- (1,853,948)
Net unrealized appreciation (depreciation) on
investments and foreign currency............ 5,444,704 (792,194) 12,268,428 650,280
------------ ------------ ----------- ------------
$ 50,388,423 $ 24,406,376 $84,416,289 $ 15,012,373
============ ============ =========== ============
</TABLE>
117
<PAGE> 118
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Notes to Financial Statements, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
5. PURCHASES AND SALES OF INVESTMENTS (EXCLUDING SHORT-TERM SECURITIES)
Purchases and proceeds on sales of investments for the portfolios, for the
period ended June 30, 2000, were as follows:
<TABLE>
<CAPTION>
MONEY AGGRESSIVE
GROWTH MARKET BOND MANAGED GROWTH INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PURCHASES
U.S. Gov't Obligations..................... $ -- $ -- $28,698,432 $44,053,885 $ -- $ --
Corporate Bonds............................ -- -- 8,580,113 6,926,305 -- --
Common and Preferred Stock................. 60,769,326 -- -- 11,773,503 33,056,067 18,223,337
----------- ------------ ----------- ----------- ----------- -----------
Total Purchases............................ $60,769,326 $ -- $37,278,545 $62,753,693 $33,056,067 $18,223,337
=========== ============ =========== =========== =========== ===========
SALES
U.S. Gov't Obligations..................... $ -- $ -- $24,464,843 $42,017,420 $ -- $ --
Corporate Bonds............................ -- -- 13,406,136 8,541,932 -- --
Common and Preferred Stock................. 88,975,857 -- -- 16,218,405 31,626,457 16,601,374
----------- ------------ ----------- ----------- ----------- -----------
Total Sales................................ $88,975,857 $ -- $37,870,979 $66,777,757 $31,626,457 $16,601,374
=========== ============ =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
ALL PRO ALL PRO ALL PRO ALL PRO
SENTINEL EQUITY LARGE CAP LARGE CAP SMALL CAP SMALL CAP
GROWTH 500 INDEX GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PURCHASES
U.S. Gov't Obligations..................... $ -- $ -- $ -- $ -- $ -- $ --
Corporate Bonds............................ -- -- -- -- -- --
Common and Preferred Stock................. 34,529,424 390,316,285 23,678,576 17,042,223 66,878,031 14,741,508
----------- ------------ ----------- ----------- ----------- -----------
Total Purchases............................ $34,529,424 $390,316,285 $23,678,576 $17,042,223 $66,878,031 $14,741,508
=========== ============ =========== =========== =========== ===========
SALES
U.S. Gov't Obligations..................... $ -- $ -- $ -- $ -- $ -- $ --
Corporate Bonds............................ -- -- -- -- -- --
Common and Preferred Stock................. 38,251,014 9,636,199 11,652,602 14,318,007 33,693,019 11,124,690
----------- ------------ ----------- ----------- ----------- -----------
Total Sales................................ $38,251,014 $ 9,636,199 $11,652,602 $14,318,007 $33,693,019 $11,124,690
=========== ============ =========== =========== =========== ===========
</TABLE>
118
<PAGE> 119
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Notes to Financial Statements, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
6. TAX BASIS OF INVESTMENTS
Investment information based on the cost of the securities for Federal income
tax purposes held at June 30, 2000 is as follows:
<TABLE>
<CAPTION>
MONEY AGGRESSIVE
GROWTH MARKET BOND MANAGED GROWTH INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Aggregate gross unrealized appreciation... $ 57,451,212 $ -- $ 295,729 $ 9,314,355 $15,447,377 $15,282,159
Aggregate gross unrealized depreciation... (13,237,641) -- (726,705) (1,887,882) (5,135,514) (7,950,504)
------------ ------------ ----------- ----------- ----------- -----------
Net unrealized appreciation
(depreciation)........................... $ 44,213,571 $ -- $ (430,976) $ 7,426,473 $10,311,863 $ 7,331,655
============ ============ =========== =========== =========== ===========
Aggregate cost of securities for federal
income tax purposes...................... $231,731,798 $100,592,645 $39,787,069 $68,814,423 $67,223,932 $81,005,097
============ ============ =========== =========== =========== ===========
Capital loss carryover (available to
offset possible future gains.) The
carryover expires as follows Money Market
Portfolio -- $57 in 2005, $9 in 2007;
Bond Portfolio -- $916,674 in 2007....... $ -- $ 66 $ 916,674 $ -- $ -- $ --
============ ============ =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
ALL PRO ALL PRO ALL PRO ALL PRO
SENTINEL EQUITY LARGE CAP LARGE CAP SMALL CAP SMALL CAP
GROWTH 500 INDEX GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Aggregate gross unrealized appreciation... $ 4,298,893 $ 36,868,773 $ 8,892,556 $ 1,432,285 $19,332,042 $ 1,318,853
Aggregate gross unrealized depreciation... (319,251) (29,725,352) (3,639,874) (2,274,713) (7,063,614) (715,573)
------------ ------------ ----------- ----------- ----------- -----------
Net unrealized appreciation
(depreciation)........................... $ 3,979,642 $ 7,143,421 $ 5,252,682 $ (842,428) $12,268,428 $ 603,280
============ ============ =========== =========== =========== ===========
Aggregate cost of securities for federal
income tax purposes...................... $ 17,281,423 $390,289,131 $44,527,437 $25,483,408 $72,113,011 $14,651,445
============ ============ =========== =========== =========== ===========
Capital loss carryover (available to
offset possible future gains.)
The carryover expires as follows:
Large Cap Value -- $215,505 in 2006;
Small Cap Value -- $630,374 in 2006,
$994,835 in 2007....................... $ -- $ -- $ -- $ 215,505 $ -- $ 1,625,209
============ ============ =========== =========== =========== ===========
</TABLE>
119
<PAGE> 120
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Notes to Financial Statements, June 30, 2000 -- Continued
(Unaudited)
--------------------------------------------------------------------------------
7. AUTHORIZED CAPITAL STOCK AND CAPITAL STOCK TRANSACTIONS
On June 30, 2000, there were 1.2 billion shares of $0.01 par value capital stock
authorized for the Fund. The shares of capital stock are divided into twelve
series: Growth Portfolio, Money Market Portfolio, Bond Portfolio, Managed
Portfolio, Aggressive Growth Portfolio, International Portfolio, Sentinel Growth
Portfolio, Equity 500 Index Portfolio, All Pro Large Cap Growth Portfolio, All
Pro Large Cap Value Portfolio, All Pro Small Cap Growth Portfolio and All Pro
Small Cap Value Portfolio. The Growth Portfolio consists of 50 million shares,
the Money Market Portfolio consists of 150 million shares, the International
Portfolio consists of 10 million shares, the Equity 500 Index Portfolio consists
of 75 million shares; each of the four All Pro Series Portfolios consists of 50
million shares, and each of the other series consists of 5 million shares.
On June 30, 2000, Provident Mutual Life Insurance Company owned 976,130 shares
of All Pro Large Cap Value, 244,088 shares of All Pro Small Cap Growth and
400,853 shares of All Pro Small Cap Value.
Transactions in capital stock for the period ended June 30, 2000 were as
follows:
<TABLE>
<CAPTION>
GROWTH PORTFOLIO MONEY MARKET PORTFOLIO BOND PORTFOLIO
------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............ 408,747 $ 7,101,697 103,590,603 $ 103,590,603 241,592 $ 2,436,053
Shares redeemed........ (1,986,815) (34,293,427) (123,547,261) (123,547,261) (515,163) (5,189,424)
Shares reinvested...... 1,320,577 23,189,339 3,087,780 3,087,780 226,123 2,245,406
---------- ------------ ------------ ------------- --------- ------------
Net contributions from
affiliated insurance
companies............. (257,491) $ (4,002,391) (16,868,878) $ (16,868,878) (47,448) $ (507,965)
========== ============ ============ ============= ========= ============
<CAPTION>
MANAGED PORTFOLIO
----------------------- -------------------------
SHARES AMOUNT
----------------------- -------------------------
<S> <C> <C>
Shares sold............ 200,134 $ 3,123,333
Shares redeemed........ (628,408) (9,733,290)
Shares reinvested...... 385,838 5,957,335
---------- ------------
Net contributions from
affiliated insurance
companies............. (42,436) $ (652,622)
========== ============
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH INTERNATIONAL SENTINEL GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............ 394,100 $ 8,874,569 395,255 $ 5,451,574 310,217 $ 5,825,322
Shares redeemed........ (312,671) (6,953,158) (437,219) (6,007,707) (574,667) (10,418,845)
Shares reinvested...... 273,279 5,468,318 783,964 11,155,804 102,327 1,727,272
---------- ------------ ------------ ------------- --------- ------------
Net contributions from
affiliated insurance
companies............. 354,708 $ 7,389,729 742,000 $ 10,599,671 (162,123) $ (2,866,251)
========== ============ ============ ============= ========= ============
<CAPTION>
EQUITY 500 INDEX
PORTFOLIO
----------------------- -------------------------
SHARES AMOUNT
----------------------- -------------------------
<S> <C> <C>
Shares sold............ 40,285,042 $402,984,317
Shares redeemed........ (1,513,605) (15,147,822)
Shares reinvested...... -- --
---------- ------------
Net contributions from
affiliated insurance
companies............. 38,771,437 $387,836,495
========== ============
</TABLE>
<TABLE>
<CAPTION>
ALL PRO ALL PRO ALL PRO
LARGE CAP LARGE CAP SMALL CAP
GROWTH PORTFOLIO VALUE PORTFOLIO GROWTH PORTFOLIO
------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............ 1,063,566 $ 14,767,689 440,710 $ 4,121,413 2,042,166 $ 42,757,478
Shares redeemed........ (178,742) (2,484,145) (252,594) (2,326,866) (283,632) (5,414,612)
Shares reinvested...... 103,708 1,456,056 22,967 223,008 77,943 1,394,394
---------- ------------ ------------ ------------- --------- ------------
Net contributions from
affiliated insurance
companies............. 988,532 $ 13,739,600 211,083 $ 2,017,555 1,836,477 $ 38,737,260
========== ============ ============ ============= ========= ============
<CAPTION>
ALL PRO
SMALL CAP
VALUE PORTFOLIO
----------------------- -------------------------
SHARES AMOUNT
----------------------- -------------------------
<S> <C> <C>
Shares sold............ 590,163 $ 4,348,172
Shares redeemed........ (131,406) (958,225)
Shares reinvested...... 5,062 37,204
---------- ------------
Net contributions from
affiliated insurance
companies............. 463,819 $ 3,427,151
========== ============
</TABLE>
120
<PAGE> 121
--------------------------------------------------------------------------------
Market Street Fund, Inc.
Notes to Financial Statements, June 30, 1999 -- Concluded
(Unaudited)
--------------------------------------------------------------------------------
Transactions in capital stock for the year ended December 31, 1999 were as
follows:
<TABLE>
<CAPTION>
GROWTH PORTFOLIO MONEY MARKET PORTFOLIO BOND PORTFOLIO
-------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............. 1,329,197 $ 25,247,128 212,282,834 $ 212,282,834 1,037,876 $ 11,071,232
Shares redeemed......... (2,509,410) (48,088,176) (191,715,270) (191,715,270) (798,215) (8,560,373)
Shares reinvested....... 390,679 7,243,192 4,866,961 4,866,961 83,209 905,319
---------- ------------ ------------ ------------- --------- ------------
Net contributions from
affiliated insurance
companies.............. (789,534) $(15,597,856) 25,434,525 $ 25,434,525 322,870 $ 3,416,178
========== ============ ============ ============= ========= ============
<CAPTION>
MANAGED PORTFOLIO
------------------------ ------------------------
SHARES AMOUNT
------------------------ ------------------------
<S> <C> <C>
Shares sold............. 1,048,895 $ 17,883,810
Shares redeemed......... (709,970) (12,005,353)
Shares reinvested....... 233,644 3,906,534
--------- ------------
Net contributions from
affiliated insurance
companies.............. 572,569 $ 9,784,991
========= ============
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH INTERNATIONAL SENTINEL GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold.................................. 623,914 $ 12,068,240 656,302 $ 9,459,577 269,528 $ 3,849,774
Shares redeemed.............................. (760,128) (14,651,877) (864,123) (12,052,571) (21,904) (311,615)
Shares reinvested............................ 403,285 7,577,720 380,631 4,986,269 43,352 560,968
------------ ------------- --------- ------------ --------- ------------
Net contributions from affiliated insurance
companies................................... 267,071 $ 4,994,083 172,810 $ 2,393,275 290,976 $ 4,099,127
============ ============= ========= ============ ========= ============
</TABLE>
<TABLE>
<CAPTION>
ALL PRO ALL PRO ALL PRO
LARGE CAP LARGE CAP SMALL CAP
GROWTH PORTFOLIO VALUE PORTFOLIO GROWTH PORTFOLIO
-------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............. 2,444,764 $ 31,491,954 1,197,996 $ 12,240,796 1,770,700 $ 22,608,975
Shares redeemed......... (1,090,487) (13,965,817) (349,648) (3,495,144) (358,525) (4,839,732)
Shares reinvested....... 258 3,102 10,603 105,080 -- --
---------- ------------ ------------ ------------- --------- ------------
Net contributions from
affiliated insurance
companies.............. 1,354,535 $ 17,529,239 858,951 $ 8,850,732 1,412,175 $ 17,769,243
========== ============ ============ ============= ========= ============
<CAPTION>
ALL PRO
SMALL CAP
VALUE PORTFOLIO
------------------------ ------------------------
SHARES AMOUNT
------------------------ ------------------------
<S> <C> <C>
Shares sold............. 1,054,394 $ 7,986,704
Shares redeemed......... (543,349) (4,091,049)
Shares reinvested....... 2,087 17,055
--------- ------------
Net contributions from
affiliated insurance
companies.............. 513,132 $ 3,912,710
========= ============
</TABLE>
8. PRINCIPAL UNDERWRITER
1717 Capital Management Company serves, without compensation, as the principal
under-writer for sale of the Fund shares to the Accounts. 1717 Capital
Management Company is an indirect wholly-owned subsidiary of PMLIC.
121
<PAGE> 122
[PROVIDENT MUTUAL LOGO] ===============
P.O. Box 15750 Bulk Rate
Wilmington, DE 19850-5750 U.S. Postage
Paid
Wilmington, DE
Form 16170 6.00 Permit No. 1387
===============
