WEISS, PECK & GREER
MUTUAL FUNDS
ANNUAL REPORT
DECEMBER 31, 1997
WPG TUDOR FUND
WPG GROWTH AND INCOME FUND
WPG GROWTH FUND
WPG QUANTITATIVE EQUITY FUND
WEISS, PECK & GREER INTERNATIONAL FUND
WPG GOVERNMENT SECURITIES FUND
WPG INTERMEDIATE MUNICIPAL BOND FUND
WPG GOVERNMENT MONEY MARKET FUND
WPG TAX FREE MONEY MARKET FUND
ONE NEW YORK PLAZA
NEW YORK, NEW YORK 10004
800-223-3332
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
TABLE OF CONTENTS
Chairman's Letter ......................................... 2
Major Portfolio Changes - Equity Funds .................... 4
Average Annual Total Returns .............................. 5
Ten Largest Holdings ...................................... 10
Schedules of Investments:
WPG Tudor Fund ........................................ 12
WPG Growth and Income Fund ............................ 14
WPG Growth Fund ....................................... 16
WPG Quantitative Equity Fund .......................... 18
Weiss, Peck & Greer International Fund ................ 19
WPG Government Securities Fund ........................ 22
WPG Intermediate Municipal Bond Fund .................. 23
WPG Government Money Market Fund ...................... 27
WPG Tax Free Money Market Fund ........................ 27
Statements of Assets and Liabilities ...................... 34
Statements of Operations .................................. 36
Statements of Changes in Net Assets ....................... 38
Notes to Financial Statements ............................. 40
Financial Highlights ...................................... 48
GROWTH
OBJECTIVE: Maximum capital appreciation (intended primarily for institutional
investors).
INTERNATIONAL
OBJECTIVE: Long-term growth of capital.
TUDOR
OBJECTIVE: Capital appreciation.
GROWTH AND INCOME
OBJECTIVE: Long-term growth of capital and current income.
QUANTITATIVE EQUITY
OBJECTIVE: Seeks to provide investment results that exceed the S & P 500.
INTERMEDIATE MUNICIPAL BOND
OBJECTIVE: High current income consistent with relative stability of principal
Exempt from Federal Income Tax.
GOVERNMENT SECURITIES
OBJECTIVE: Current income.
* TAX FREE MONEY MARKET
OBJECTIVE: Maximize current income with preservation of capital and liquidity.
Exempt from Federal Income Tax.
* GOVERNMENT MONEY MARKET
OBJECTIVE: Maximize current income with preservation of capital and liquidity.
* Although these Funds are money market funds and attempt to maintain a stable
$1.00 net asset value per share, investments in these Funds are neither
insured or guaranteed by the U.S. Government. There can be no assurance that
either Fund will be able to maintain a stable net asset value of $1.00 per
share.
<PAGE>
DEAR SHAREHOLDER:
DOMESTIC MARKETS
- ----------------
1997 was an unprecedented year for domestic financial markets. The major
stock indices returned over 20% for the third consecutive year, and the yields
on long-term U.S. Treasury bonds fell to near record levels, ending the year
with a yield of 5.92%.
The S&P 500 gained 33.4% in 1997, completing a robust three-year period in
which it has risen 125.6%. The ten-year performance of the S&P 500 is better
than any other 10 year period in history, except for the two that ended in 1958
and 1959. The Dow Jones Industrial Average now has risen for seven consecutive
years advancing more than 300%. The Wilshire 5000, a measure of the entire
universe of domestic equity issues, rose 29% during 1997. Small stock
performance lagged large cap returns, as evidenced by the Lipper Small Cap Index
which returned 15.0% for the same time period.
The stock market was more volatile during 1997 than in 1996. The Federal
Reserve Board raised the federal funds rate during March 1997 when concerns
arose regarding a strengthening U.S. economy and its effect upon future
inflation. This action caused a sharp stock market setback of almost ten percent
during early Spring. Cyclical and small cap issues rebounded decisively during
the third quarter due to favorable valuations and the increasing confidence of
investors regarding the profit outlook.
Fourth quarter stock performance was dampened during late October when
strong financial turmoil in Hong Kong caused world markets to correct. This
concern spread to Korea and then to Japan, the largest capitalized Asian market.
While Asia accounts for only a small proportion of U.S. companies' sales, it is
important for most U.S. multinationals. As a result, during the quarter,
defensive sectors outperformed. Utility issues and health care companies in
particular performed well. Technology stocks and other economically sensitive
issues significantly underperformed.
The real success story of 1997 was that Consumer Price Index inflation fell
to 1.7%, the lowest since 1986 when a collapse in oil prices aided that year's
report. Energy and food prices helped 1997 results, but even without these two
volatile components, prices would have only increased by just 2.2%; the lowest
in thirty years. The Producer Price Index was actually negative for the year
(-1.2%) and up slightly (+0.1%) when energy and food prices are eliminated. The
outlook for 1998 suggests that a low inflation environment should continue.
As we enter 1998, the lingering Asian financial crisis continues to create
investor uncertainty regarding its impact upon the U.S. economy and corporate
profits. A widening of our net export deficit will slow domestic economic
activity, but inflation should be positively impacted due to lower import
pricing. Asia's problems have already influenced domestic monetary policy,
causing the Federal Reserve to maintain a steady rate structure. We expect that
corporate operating earnings in 1998 will improve modestly, rising 5% to 7%,
relative to an estimated increase of over 10% in 1997. High valuations and
slower growth may also spur continued high merger activity.
The 1998 economic environment should be characterized by diminishing growth
combined with little corporate pricing power. Equity securities that exhibit
steady, consistent earnings results should outperform.
History suggests that after three years of spectacular stock market gains,
1998 most likely will show lower returns combined with continued high
volatility. In this environment, stock selection will be increasingly important,
and hence, our focus will be on companies that meet our overall investment
profile and provide the greatest potential for long-term growth.
The fixed income markets responded favorably to the decline in inflation,
following a first quarter scare due to strong growth and fears of intensifying
wage pressures. Lower levels of Treasury issuance due to a dramatic decline in
the budget deficit also had a positive impact on performance. In the fourth
quarter, however financial difficulties in Asia clearly dominated the fixed
income markets. The resulting higher level of global economic uncertainty drove
yields lower and caused corporate bonds to underperform Treasury securities. In
spite of lower yields, mortgage securities performed well in 1997, as high
credit quality and incremental yield remained in demand.
Page 2
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INTERNATIONAL MARKETS
- ---------------------
1997 was a year of mixed fortunes in financial markets. Against the
background of buoyant bond markets and strong gains on Wall Street, equity
prices surged higher in Europe and the UK but suffered steep declines in Asia
and Japan.
The international story of the year was the gathering crisis in the Far
East. Problems relating to international indebtedness and budget and current
account worries seemed initially to be containable but investor worries
reverberated through the region. One country after another suffered steep
declines in both currency exchange rates and stock markets - a modern day domino
effect. Concern turned to fear and it was clear that there was no place to hide
in the region. Even Japan, which showed evidence of having broken out of
economic lethargy, disappointed yet again.
Fortunately, however, the economic and political environment in Europe and
the UK was positive for equities. The UK economy was very strong throughout
1997. Corporate activity was also a feature of the year, not just with merger
and acquisition activity but also with companies returning capital to
shareholders. The strength of sterling benefited U.S. dollar returns from UK
investments. On the continent of Europe, there was a growing confidence that
economic activity was improving and there was a well entrenched belief that
European Economic and Monetary Union (EMU) would start on time in 1999.
Looking ahead, the uncertainties in Asia and Japan persist. IMF help has
been sought by several Asian countries and there has been a plethora of
announcements relating to budget spending controls, reforms and restructuring.
Similarly, in Japan there are still problems in the banking sector and the
economy's progress is hard to assess. In the UK, we anticipate that growth will
slow and eventually interest rates will fall again, but an economic downturn is
not expected. Growth in Europe could improve marginally on 1997 levels and we
anticipate that EMU factors will continue to sustain investor confidence.
At Weiss, Peck & Greer, we continue to direct our efforts to identify
investments that will enable our shareholders to achieve their long term goals.
Sincerely,
/s/ Roger J. Weiss
Roger J. Weiss
Chairman of the Board
January 20, 1998
Page 3
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WEISS, PECK & GREER MUTUAL FUNDS
MAJOR PORTFOLIO CHANGES - EQUITY FUNDS - QUARTER ENDING DECEMBER 31, 1997
UNAUDITED
TUDOR GROWTH AND INCOME
ADDITIONS ADDITIONS
- --------- ---------
ADVO Inc. Cisco Systems Inc.
Affiliated Managers Group Conseco Inc. Preferred Stock 7.000%
Corrections Corp of America Entertainment Properties Trust
Movado Group Inc. Ericsson L M Telephone Co. ADR Cl B
PETsMART Inc. Convertible Bond Philip Services Corp.
6.750% Due 11/1/04 SAFECO Corp.
Rational Software Corp.
RSL Communications Ltd. Cl A
Staten Island Bancorp Inc.
Vencor Inc.
Washington Federal Inc.
DELETIONS DELETIONS
- --------- ---------
ESC Medical Systems Ltd. Amerada Hess Corp.
EVI Inc. Colgate - Palmolive Co.
Globalstar Telecommunications Ltd. Crescent Operating Inc.
Hyperion Software Corp. Dura Pharmaceuticals Convertible Bond
Just for Feet Inc. 3.500% Due 7/15/02
Omnicare Care Gables Residential Trust
Papa John's International Inc. Hercules Inc.
PETsMART Inc. Intel Corp.
Templeton Dragon Fund Motorola Inc.
Whole Foods Market Inc. Pharmacia & Upjohn Inc.
GROWTH INTERNATIONAL
ADDITIONS ADDITIONS
- --------- ---------
ADVO Inc. Brambles Industries Ltd.
Affiliated Managers Group Diageo PLC
Corrections Corp of America Endesa SA
Emcor Group Inc. Mabuchi Motor Co.,Ltd.
Flexinternational Software Nintendo Co.,Ltd.
KTI Inc. Sun Hung Kai Properties
Rational Software Corp. Total SA Cl B
Staten Island Bancorp Inc. TTB Finance Cayman Convertible Bond
Washington Federal Inc. 0.750% Due 9/29/49
DELETIONS DELETIONS
- --------- ---------
Aspect Telecommunications Australia & New Zealand Bank Group
ESC Medical Systems Ltd. Banque Nationale De Paris
Globalstar Telecommunications Ltd. CSR
Hyperion Software Corp. Dai Ichi Kangyo Bank
Intermedia Communications Inc. Dao Heng Bank Group
P - COM Inc. Hitachi Ltd.
Papa John's International Inc. Iberdrola SA
Qualcomm Inc. Imperial Tobacco
Templeton Dragon Fund Mitsubishi Trust & Banking
Whole Foods Market Inc. Yokogawa Electric Corp.
Page 4
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WEISS, PECK & GREER MUTUAL FUNDS
AVERAGE ANNUAL TOTAL RETURN
TUDOR FUND
The Fund underperformed its benchmarks for the year ended December 31, 1997 as a
result of unfavorable stock selection and an overweighting in the biotechnology,
technology, telecommunications and retail sectors. This was partially offset by
outperformance in the energy, financial and manufacturing sectors.
Adam Starr took over as portfolio manager for Melville Straus on December 17,
1997. Mr. Starr is in the process of reshaping the Fund's portfolio,
concentrating on companies which he feels have the best fundamental investment
prospects. Mr. Starr hopes to achieve more stability in returns of the Fund
going forward.
[Graph omitted here]
Graph depicts the comparison of a $10,000 investment between the Tudor Fund
and the Russell 2500 Growth Index and the Lipper Capital Appreciation Index
for the periods from January 1988 through December 31,1997.
TUDOR FUND
TUDOR RUSSELL LIPPER
----- ------- ------
1/1/88 10,000 10,000 10,000
12/88 11,514 11,690 11,285
12/89 14,397 14,555 14,479
12/90 13,653 12,779 13,352
12/91 19,908 19,811 18,367
12/92 20,928 20,958 19,756
12/93 23,728 23,502 22,867
12/94 21,400 23,201 22,305
12/95 30,213 30,983 29,351
12/96 35,899 35,652 33,739
12/97 39,887 40,914 40,440
AVERAGE ANNUAL TOTAL RETURN
(for the periods ended December 31, 1997)
1 year 5 years 10 years
------ ------- --------
TUDOR ........................... 11.11% 13.77% 14.84%
Russell 2500 Growth Index ....... 14.76% 14.32% 15.13%
Lipper Cap Appreciation Index ... 19.86% 15.40% 14.99%
GROWTH AND INCOME FUND
The one year return of the Growth & Income Fund for 1997 was among the highest
in the history of the Fund. The Fund outperformed the Lipper Growth & Income
Average by over 9%. The Fund's annualized three year return of 31% outpaces the
Lipper Growth & Income Average by over 4% per year. Financial, consumer cyclical
and health care sectors led Fund performance during the year. American Express,
Bank of New York, Federal National Mortgage Association and Travelers Group Inc.
paced the financial sector, each increasing by over 50%. Bristol - Myers Squibb,
Eli Lilly, Pfizer and Schering Plough were all up by more than 70% last year.
Home Depot and Carnival Cruise Line were leading performers among several
consumer cyclical holdings. The outlook for large cap investing continues to be
positive. Slower economic growth in 1998 and continued pricing pressures will
tend to favor large companies.
[Graph omitted here]
Graph depicts the comparison of a $10,000 investment between the Growth and
Income Fund and the Lipper Growth & Income Funds Average for the periods of
January 1988 through December 31, 1997.
GROWTH & INCOME FUND
G&I S&P LIPPER
--- --- ------
1/1/88 10,000 10,000 10,000
12/88 10,947 11,661 11,625
12/89 13,973 15,356 14,403
12/90 12,525 10,581 13,787
12/91 17,625 13,804 17,832
12/92 20,058 14,856 19,481
12/93 21,971 16,354 21,858
12/94 20,772 16,570 21,696
12/95 25,570 22,797 28,494
12/96 34,303 28,031 34,498
12/97 46,744 52,369 43,266
AVERAGE ANNUAL TOTAL RETURN
(for the periods ended December 31, 1997)
1 year 5 years 10 years
------ ------- --------
GROWTH AND INCOME 36.27% 18.44% 16.67%
S&P 500 Stock Index 33.36% 20.27% 18.05%
Lipper Growth & Income
Funds Average 27.14% 17.63% 15.86%
Page 5
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WEISS, PECK & GREER MUTUAL FUNDS
AVERAGE ANNUAL TOTAL RETURN
GROWTH FUND
The Fund underperformed its benchmarks for the year ended December 31, 1997 as a
result of unfavorable stock selection and an overweighting in the biotechnology,
computer equipment and services, telecommunications and retail sectors. This was
partially offset by outperformance in the energy, financial, business services
and leisure sectors.
Adam Starr took over as portfolio manager for Melville Straus on December 17,
1997. Mr. Starr is in the process of reshaping the Fund's portfolio,
concentrating on companies which he feels have the best fundamental investment
prospects. Mr. Starr hopes to achieve more stability in returns of the Fund
going forward.
[Graph omitted here]
Graph depicts the comparison of a $10,000 investment between the Growth Fund and
the Wilshire Small Co. Growth Index, the Lipper Small Cap Index and the Russell
2000 Growth Index for the periods of January 198 through December 31, 1997.
GROWTH FUND
GROWTH WILSHIRE LIPPER RUSSELL
------ -------- ------ -------
1/1/88 250,000 250,000 250,000 250,000
12/88 278,525 298,250 300,850 300,925
12/89 347,794 354,649 364,209 361,622
12/90 303,277 287,195 314,021 296,663
12/91 475,568 450,321 488,415 451,549
12/92 505,386 509,764 518,581 486,634
12/93 580,486 601,419 606,353 551,649
12/94 499,044 604,667 603,442 538,244
12/95 697,264 817,449 794,251 705,314
12/96 822,702 930,911 908,385 784,733
12/97 902,258 1,078,461 1,045,097 886,356
AVERAGE ANNUAL TOTAL RETURN
(for the periods ended December 31, 1997)
1 year 5 years 10 years
------ ------- --------
GROWTH .......................... 9.67% 12.29% 13.70%
Wilshire Small Co. Growth Index.. 15.85% 16.17% 15.74%
Lipper Small Cap Index .......... 15.05% 15.04% 15.38%
Russell 2000 Growth Index ....... 12.95% 12.74% 13.49%
QUANTITATIVE EQUITY FUND
The Fund lagged its benchmark in 1997. This was due to the risk adverse nature
of the Fund and sector weightings that have differed from the benchmark. While
still maintaining its risk features, the sector weightings were reallocated
during the year so that they are now more in line with the benchmark of the S&P
500. As we move into 1998, we believe that the Fund is better positioned to beat
the benchmark in either rising or falling market environments.
[Graph omitted here]
Graph depicts the comparison of a $10,000 investment between the Quantitative
Equity Fund and the S&P 500 Index for the periods of January 1993 through
December 31, 1997.
QUANTITATIVE EQUITY FUND
QUANTITATIVE
EQUITY S&P
------ ---
1/93 10,000 10,000
12/93 11,390 11,008
12/94 11,429 11,153
12/95 15,242 15,345
12/96 18,064 18,868
12/97 22,665 25,162
AVERAGE ANNUAL TOTAL RETURN
(for the periods ended December 31, 1997)
1 year 5 years+
------ -------
QUANTITATIVE EQUITY ........ 25.47% 17.78%
S&P 500 Stock Index ........ 33.36% 20.27%
+ Commencement of operations 1/1/93
Page 6
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WEISS, PECK & GREER MUTUAL FUNDS
AVERAGE ANNUAL TOTAL RETURN
INTERNATIONAL FUND
1997 was a year of mixed fortunes in financial markets. Against the background
of buoyant bond markets and strong gains on Wall Street, equity prices surged
higher in Europe and the UK but suffered steep declines in Asia and Japan. Asset
allocation in the Fund was adjusted to take advantage of this disparate market
performance with holdings in the Far East reduced and holdings in Europe and the
UK increased. As a result, the Fund returned 2.90% for the year ended December
31,1997 versus a return of 2.06% for the EAFE Index.
[Graph omitted here]
Graph depicts the comparison of a $10,000 investment between the International
Fund and the EAFE for the periods of June 1989 through December 31, 1997.
INTERNATIONAL FUND
INTERNATIONAL EAFE
------------- ----
6/1/89 10,000 10,000
12/89 11,054 11,567
12/90 9,415 8,883
12/91 9,510 9,994
12/92 8,984 8,810
12/93 12,329 11,711
12/94 11,550 12,655
12/95 12,812 14,117
12/96 13,406 15,015
12/97 13,793 15,324
AVERAGE ANNUAL TOTAL RETURN
(for the periods ended December 31,1997)
since
1 year 5 years inception+
------ ------- ----------
INTERNATIONAL(A) ....... 2.89% 8.96% 3.83%
EAFE (Europe, Australia,
Far East) Index ...... 2.06% 11.71% 5.10%
+ Commencement of operations 6/1/89
(A) The Adviser waived its fee from inception of the Fund through 2/28/90 and
has waived a portion of its fee from that date through October 19, 1994. Had
the Adviser not done so, the total return for the five years ended 12/31/97
and from inception through 12/31/97 would have been lower.
WEISS, PECK & GREER MUTUAL FUNDS
AVERAGE ANNUAL TOTAL RETURN
INTERMEDIATE MUNICIPAL BOND FUND
Municipal yields declined in step with treasuries during 1997. As rates edged
downward, yield hungry investors moved cash into lesser grade securities. This
phenomenon caused the yield spread between AAA rated securities and BBB rated
securities to tighten. These two forces produced relatively strong returns for
intermediate term municipal funds.
The Fund benefitted generally from the forces driving its market. Our philosophy
of maintaining a neutral exposure to interest rate changes while seeking to
uncover value at the security level generated returns in excess of the market.
For the year, the total return of the Fund exceeded the return of its
Morningstar benchmark by over 0.40% and exceeded its Lipper benchmark by almost
0.70%.
[Graph omitted here]
Graph depicts the comparison of a $10,000 investment between the Intermediate
Municipal Bond Fund and the Lehman 3-10 Year Municipal Bond Index and the
Lipper Intermediate Muni Funds Index.
INTERMEDIATE MUNICIPAL BOND
MUNI BOND LEHMAN LIPPER
--------- ------ ------
7/1/93 10,000 10,000 10,000
12/93 10,348 10,414 10,344
12/94 10,111 10,138 9,970
12/95 11,329 11,536 11,284
12/96 11,805 12,041 11,700
12/97 12,732 12,937 12,538
AVERAGE ANNUAL TOTAL RETURN
(for the periods ended December 31, 1997)
since
1 year inception +
------ -----------
INTERMEDIATE MUNICIPAL BOND (B) ....... 7.85% 5.51%
Lehman Bros. 3-10 yr. Muni Bond Index.. 7.44% 5.89%
Lipper Intermediate Muni Funds ........ 7.16% 5.27%
+ Commencement of operations 7/1/93
(B) The Adviser waived its fee from inception of the Fund through October 19,
1994 and reimbursed certain other expenses. Had the Adviser not done so, the
total return of the Fund for the year ended 12/31/97 and from inception
through 12/31/97 would have been lower.
Page 7
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WEISS, PECK & GREER MUTUAL FUNDS
AVERAGE ANNUAL TOTAL RETURN
WPG GOVERNMENT SECURITIES FUND
For the year ended December 31, 1997 WPG's Government Securities Fund total
return trailed that of the Morningstar General Government Bond Universe and the
Lehman Brothers Intermediate Government Mortgage Index. In order to maintain
income in a low interest rate environment, the Fund maintained a fairly large
allocation in mortgage backed securities during 1997 due to the higher
incremental yields versus Treasury securities. This allocation was reduced in
the second quarter in response to increased risk due to the declining yield
premium versus Treasuries. This strategy has a negative impact on returns
relative to our benchmarks as mortgage securities continued to perform well. In
the second half of the year, however the value of mortgage backed securities
become more attractive versus Treasuries and the allocation was gradually
increased to 40% - 50% of the Fund. Yield curve positioning was focused for much
of the year on a "bullet" strategy (i.e. maturities centered around the weighted
average) due to the overall higher portfolio yield this produced. The Fund did
achieve its objective of providing attractive income with a relatively low level
of principal risk.
As the new year begins the Fund will shift its focus and strategy to more of a
fixed income, total return orientation. This will involve the inclusion of
Investment grade and asset backed securities, in addition to Treasury, Agency
and Agency Mortgage Securities. In addition, the Fund will seek to outperform on
a total return basis a more broad based fixed income benchmark, the Lehman
Brothers Aggregate Index. To reflect the more institutional nature of the client
base, WPG will voluntarily cap the Fund's expenses ratio at 0.50%. Fund
management feels that these changes will make the Fund more competitive and
attractive to its shareholders.
[Graph omitted here]
Graph depicts the comparison of a $10,000 investment between the Government
Securities Fund and the Lehman INTMD Government/MBS and the Morningstar
General Government Bond Index for the periods of January 1988 through December
31, 1997.
GOVERNMENT SECURITIES FUND
GOVERNMENT LEHMAN MORNINGSTAR
---------- ------ -----------
1/1/88 10,000 10,000 10,000
12/88 10,791 10,730 10,655
12/89 12,290 12,204 11,907
12/90 13,389 13,432 12,902
12/91 15,258 15,417 14,698
12/92 16,461 16,489 15,595
12/93 17,936 17,742 16,829
12/94 16,376 17,444 16,241
12/95 18,546 20,130 18,668
12/96 19,260 21,060 19,136
12/97 20,679 22,762 20,637
AVERAGE ANNUAL TOTAL RETURN
(for the periods ended December 31, 1997)
1 year 5 years 10 years
------ ------- --------
GOVERNMENT SECURITIES .............. 7.37% 4.67% 7.54%
Lehman Intermed. Gov./MBS .......... 8.49% 6.74% 8.61%
Morningstar Gen'l Gov. Bond Index .. 7.84% 5.77% 7.51%
Page 8
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
AVERAGE ANNUAL TOTAL RETURN
Performance represents historical data. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Each Fund's
results and the indices (except as noted below) assume the reinvestment of all
capital gain distributions and income dividends. Each Fund's past performance is
not indicative of future performance and should be considered in light of each
Fund's investment policy and objectives, the characteristics and quality of its
portfolio securities, and the periods selected. The S&P 500 Stock Index is a
broad based measurement of changes in stock market conditions based on the
average performance of 500 widely held common stocks. The Russell 2000 Growth
Index and Russell 2500 Growth Index are measurements of changes in stock market
conditions based on the average performance of U.S. growth oriented securities
with a median market capitalization of approximately $220 million and $1.4
billion, respectively. Lipper Analytical Services ("Lipper") and Morningstar
compare mutual funds according to overall performance, investment objectives,
investment policies, assets, expense levels, periods of existence and other
factors. Wilshire Asset Management indices are derived from the largest 2500 of
the Wilshire 5000 Stock Index and is a broad based index. The Lehman Brothers
Intermediate Government/Mortgage Backed Securities Index is a market weighted
blend of all intermediate government issues (3-10 year maturities) and all
mortgage securities. The Lehman Brothers Aggregate Index is a market weighted
blend of all government issues, mortgage securities and investment grade
corporate debt securities. The Lehman Brothers 3-10 year Muni Bond Index is a
broad based index which contains all securities in the Lehman Municipal Bond
Index with maturities from 3-10 years. The Morgan Stanley Capital International
Europe, Australia, Far East ("EAFE") is an index of more than 800 companies in
Europe, Australia and the Far East.
Page 9
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WEISS, PECK & GREER MUTUAL FUNDS
TEN LARGEST HOLDINGS AT DECEMBER 31, 1997 *
PERCENT
VALUE OF NET
TUDOR FUND (000'S) ASSETS
- ---------- ------- ------
Solectron Corp .................. $5,299 3.2%
BE Aerospace Inc ................ 4,810 2.9%
Starbucks Corp .................. 3,837 2.3%
Nuevo Energy Corp ............... 3,293 2.0%
PLATINUM Technology Inc ......... 3,291 2.0%
Hexcel Corp ..................... 3,274 2.0%
Gulf Canada Resources ........... 3,101 1.9%
Amerin Corp ..................... 3,052 1.8%
Corrections Corp of America 3,039 1.8%
Hadco Corp ...................... 3,009 1.8%
----- ---
$36,005 21.7%
======= ====
PERCENT
VALUE OF NET
GROWTH AND INCOME FUND (000'S) ASSETS
- ---------------------- ------- ------
Lilly (Eli) & Co .................. $4,526 3.9%
American Express Co ............... 4,463 3.8%
Carnival Corp ..................... 4,430 3.8%
American International Group Inc. . 4,078 3.5%
Bank of New York Inc .............. 3,758 3.2%
Warner Lambert Co ................. 3,720 3.2%
Storage Technology Corp ........... 3,345 2.8%
Travelers Group Inc. .............. 3,233 2.8%
Schlumberger Ltd .................. 3,220 2.7%
Cresent Real Estate Equities Inc .. 3,150 2.7%
----- ---
$37,923 32.4%
======= ====
GROWTH FUND
- -----------
BE Aerospace Inc ................. $1,150 2.5%
PLATINUM Technology Inc .......... 1,130 2.4%
Corrections Corp of America ...... 1,112 2.4%
Gulf Canada Resources ............ 1,099 2.4%
Amerin Corp ...................... 1,092 2.3%
Nuevo Energy Corp ................ 1,019 2.2%
Hexcel Corp ...................... 935 2.0%
Hadco Corp ....................... 905 1.9%
America West Holdings Corp. Cl B.. 885 1.9%
Phycor Inc ....................... 877 1.9%
--- ---
$10,204 21.9%
======= ====
QUANTITATIVE EQUITY FUND
- ------------------------
Exxon Corp ...................... $ 3,794 4.0%
General Electric Co ............. 2,876 3.0%
Dayton Hudson Corp .............. 2,720 2.8%
Ameritech Corp .................. 2,689 2.8%
Lilly (Eli) & Co ................ 2,660 2.8%
International Business Machines
Corp ........................ 2,227 2.3%
Microsoft Corp .................. 2,210 2.3%
BellSouth Corp .................. 2,117 2.2%
Ford Motor Co ................... 1,845 1.9%
Royal Dutch Petroleum Co ADR .... 1,718 1.9%
----- ---
$24,856 26.0%
======= ====
INTERNATIONAL FUND
- ------------------
Viag AG ......................... $288 3.4%
Commerzbank AG .................. 251 2.9%
Novartis AG ..................... 250 2.9%
Nestle .......................... 214 2.5%
Preussag AG ..................... 206 2.4%
Instituto Nazionale Delle
Assicurazione ................ 199 2.3%
Daimler Benz AG ................. 197 2.3%
Eaux (Cie Generale Des) ......... 195 2.3%
Nippon Telegraph & Telephone Corp 189 2.2%
Elsevier ........................ 181 2.1%
--- ---
$2,170 25.3%
====== ====
Page 10
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
<TABLE>
<CAPTION>
TEN LARGEST HOLDINGS AT DECEMBER 31,1997* - CONTINUED
PERCENT
VALUE OF NET
GOVERNMENT SECURITIES FUND (000'S) ASSETS
- -------------------------- ------- ------
<S> <C> <C>
United States Treasury Note 6.500% Due 10/15/06 .................... $27,574 25.4%
Government National Mortgage Association 7.000% Due 1/15/28 ......... 14,698 13.6%
Federal National Mortgage Association 7.500% Due 1/1/13-1/1/28 ...... 11,555 10.7%
Federal Home Loan Bank Discount Note Due 1/22/98 .................... 11,173 10.3%
Government National Mortgage Association 7.500% Due 9/15/07-8/15/17.. 8,433 7.8%
United States Treasury Note 5.750% Due 9/30/99 ...................... 7,405 6.8%
United States Treasury Bond 6.375% Due 8/15/27 ...................... 6,065 5.6%
United States Treasury Note 6.500% Due 5/31/01 ...................... 6,009 5.5%
Federal Home Loan Bank Discount Note Due 1/14/98 .................... 5,858 5.4%
Federal National Mortgage Association 6.500% Due 1/1/13 ............. 5,629 5.2%
-------- ----
$104,399 96.3%
======== ====
INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------
San Antonio Texas Electric & Gas 5.250% Due 2/1/10 ................... $1,040 4.4%
San Francisco California City & County Refunding Series 1
(FGIC Insured) 5.000% Due 6/15/10 ................................. 1,030 4.4%
Port of Houston Texas General Obligation Bond 5.100% 10/1/11 ......... 1,019 4.3%
Cook County Illinois School District No. 99 (FGIC Insured)
8.500% Due 12/1/01 ................................................. 1,011 4.3%
Springfield Illinois Electric Revenue 6.500% Due 3/1/08 .............. 863 3.7%
Lancaster County Pennsylvania General Obligation Bond Series B
(AMBAC Insured) 4.100% Due 11/1/03 ................................... 834 3.6%
Harris County Texas Flood District General Obligation Zero Coupon
Due 10/1/06 ........................................................ 642 2.7%
Oklahoma County Oklahoma Home Finance Authority Single Family
Refunding Prerefunded Zero Coupon Due 7/1/12 ...................... 642 2.7%
Cypress Fairbanks Texas General Obligation Independent School District
7.300% Due 2/15/07 ................................................ 603 2.6%
Surry County North Carolina Pollution Control Finance
Authority 9.250% Due 12/1/02 ....................................... 588 2.5%
------ ----
$8,272 35.2%
====== ====
<FN>
* The composition of the largest securities in each portfolio is subject to change.
</FN>
</TABLE>
Page 11
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
TUDOR
COMMON STOCKS (86.1%)
CAPITAL GOODS
COMMUNICATIONS (2.2%)
30,000 +Advanced Fibre Communication Inc. ............... $ 874
20,000 +Aspect Telecommunications ........................ 417
87,500 +P-COM Inc. ....................................... 1,509
40,000 +RSL Communications Ltd Cl A ...................... 880
--------
3,680
--------
COMPUTER PERIPHERALS (0.3%)
60,000 +Network Computing Devices ....................... 562
--------
.
COMPUTER SOFTWARE & SERVICES (8.3%)
27,500 +Arbor Software Corp. ............................. 1,114
29,000 +Data Processing .................................. 740
125 +Exigent International Inc. ....................... --
39,500 * +Flexinternational Software ....................... 612
44,500 +Industri-Matematik International Corp. ........... 1,313
20,000 +Legato Systems Inc. .............................. 880
50,000 +Made2Manage Inc. ................................. 378
40,000 +Parametric Technology Corp. ...................... 1,895
116,500 *+PLATINUM Technology Inc. ......................... 3,291
156,500 +Rational Software Corp. .......................... 1,780
100,000 +Segue Software Inc. .............................. 1,088
30,000 +Vantive Corp. .................................... 758
--------
13,849
--------
INTERNET (1.1%)
50,000 +Security Dynamics Technology Inc. ................ 1,787
OTHER CAPITAL GOODS (6.1%)
179,800 +BE Aerospace Inc. ................................ 4,810
131,300 +Hexcel Corp. ..................................... 3,274
17,000 +Thermoquest Corp. ................................ 308
50,000 +Thermoquest Corp. (A) ............................ 861
75,000 +Trident International Inc. ....................... 975
--------
10,228
--------
SEMICONDUCTORS & RELATED (1.4%)
31,000 +KLA - Tencor Corp. .............................. 1,197
25,500 +Uniphase Corp. ................................... 1,055
--------
2,252
--------
32,358
--------
CONSUMER
BIOTECHNOLOGY (6.0%)
10,000 +Arqule Inc. ...................................... 229
70,000 *+BioChem Pharmaceutical Inc. ...................... 1,461
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
TUDOR (CONTINUED)
30,000 +Cor Therapeutics ................................. $ 675
20,000 +Dura Pharmaceuticals Inc. ........................ 918
16,000 +Guilford Pharmaceuticals Inc. .................... 322
30,000 +INCYTE Pharmaceuticals Inc. ...................... 1,350
57,500 *+North American Vaccine Inc. ..................... 1,434
30,000 +Pathogenesis Corp. ............................... 1,114
114,200 +Ribi Immunochem Research Inc. .................... 421
15,000 +SANGSTAT Medical Corp. ........................... 607
149,900 +SEQUUS Pharmaceuticals Inc. ...................... 1,115
30,000 +Synaptic Pharmaceutical Corp. .................... 326
--------
9,972
--------
HEALTH CARE - COST
CONTAINMENT (4.0%)
100,000 +Access Health Inc. ............................... 2,938
75,000* Integrated Health Services Inc. .................. 2,339
59,000 +Vencor Inc. ...................................... 1,442
--------
6,719
--------
HEALTH CARE- OTHER (1.6%)
10,000 +Cadus Pharmaceutical Corp. ...................... 64
97,000* +Phycor Inc. ..................................... 2,619
--------
2,683
--------
MEDIA-CELLULAR (2.4%)
120,000 +Loral Space & Communications ..................... 2,573
81,000 +Western Wireless Corp Cl A ....................... 1,407
--------
3,980
--------
MEDIA - OTHER (1.7%)
257,000 +Paging Networks Inc. ............................ 2,763
OTHER CONSUMER (6.9%)
40,600 +Central Garden & Pet ............................. 1,066
31,500 +Ciena Corp. ...................................... 1,925
30,000 *+Family Golf Centers Inc. ........................ 941
30,000 +Gemstar International Group Ltd. ................. 731
60,000 *Hollingher International ......................... 840
32,500 +NBTY Inc. ........................................ 1,085
55,000 *Royal Caribbean Cruises Ltd. ..................... 2,932
360,500 +Wetherspoon J.D .................................. 1,983
--------
11,503
--------
RESTAURANTS (3.6%)
65,000 +Rainforest Cafe Inc. ............................ 2,145
100,000 +Starbucks Corp. ................................. 3,837
--------
5,982
--------
RETAIL (3.6%)
17,500 +Barnett Inc. ..................................... 385
30,000 *+Friedman's Inc Cl A .............................. 538
32,000 Movado Group Inc. ................................ 736
See notes to financial statements
Page 12
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
TUDOR (CONTINUED)
50,000 +Party City Corp. ................................. $1,613
65,000 +Williams Sonoma Inc. ............................. 2,722
--------
5,994
--------
49,596
--------
ENERGY
OIL & GAS EXPLORATION (3.9%)
443,000 +Gulf Canada Resources ........................... 3,101
80,800 +Nuevo Energy Co. ................................. 3,293
--------
6,394
--------
OIL SERVICES (3.0%)
7,500 +BJ Services Co. .................................. 540
15,000 +KTI Inc. ......................................... 246
50,000 +Noble Drilling Corp. ............................. 1,531
40,000 +Rowan Companies .................................. 1,220
35,000 +Weatherford Enterra Inc. ......................... 1,531
--------
5,068
--------
11,462
--------
INTERMEDIATE GOODS & SERVICES
BASIC INDUSTRIES (2.8%)
55,300 CalMat Co. ....................................... 1,541
80,000 Lyondell Petrochemical Co. ....................... 2,120
7,000 OM Group Inc. .................................... 256
200,000 +Waxman Industries Inc. ........................... 738
--------
4,655
--------
BUSINESS SERVICES (14.3%)
12,500 +Cambridge Technology Partners Inc.. .............. 520
45,000 Checkpoint Systems Inc. ........................... 788
14,000 +Ciber Inc. ....................................... 812
18,000 +Compuware Corp ................................... 576
82,000 +Corrections Corp of America ...................... 3,039
35,000 +Emcor Group Inc. ................................. 718
66,500 +Hadco Corp. ...................................... 3,009
65,000 +International Network Services ................... 1,503
40,000 +Keane Inc. ....................................... 1,625
230,200 +MoneyGram Payment Systems ........................ 2,475
127,500 +Solectron Corp. .................................. 5,299
42,000 +Technology Solutions ............................. 1,108
85,000 +Wackenhut Corrections Corp. ...................... 2,284
--------
23,756
--------
TRANSPORTATION (3.3%)
153,300 +America West Holdings Corp.Cl B .................. 2,855
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
TUDOR (CONTINUED)
45,000 *+Continental Airlines Cl B ........................ $2,166
20,000 +Virgin Express Holdings ADR ...................... 415
--------
5,436
--------
33,847
INTEREST SENSITIVE
BANKS (3.3%)
85,000 +BankUnited Financial Corp Cl A ................... 1,310
23,000 Coastal Bancorp Inc. ............................. 802
20,000 Seacoast Banking ................................. 770
75,000 +Staten Island Bancorp Inc. ....................... 1,570
31,500 Washington Federal Inc. .......................... 990
--------
5,442
--------
INSURANCE (1.8%)
109,000 +Amerin Corp. ..................................... 3,052
--------
OTHER (2.9%)
45,000 +ADVO Inc. ........................................ 878
71,400 +Affiliated Managers Group ........................ 2,071
85,000 +Cadiz Land Company Inc. .......................... 728
23,500 +Cornell Corrections .............................. 488
85,000 +Novacare Employee Services ....................... 680
--------
4,845
--------
13,339
--------
REAL ESTATE INVESTMENT TRUST (1.6%)
RESIDENTIAL
109,500 Mills Corp. ...................................... 2,683
--------
TOTAL COMMON STOCKS
(Cost $102,419) .................................. 143,285
--------
CONVERTIBLE PREFERRED
STOCK (0.0%)
CAPITAL GOODS (0.0%)
OTHER CAPITAL GOODS
(Cost $500)
5,138 +Advance Promotion Technologies Inc (A) ........... 1
--------
NUMBER
OF WARRANTS
- -----------
WARRANTS (0.3%)
ENERGY
OIL SERVICES
(Cost $48)
10,000 B.J. Services Co. ................................ 459
--------
See notes to financial statements Page 13
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TUDOR (CONTINUED)
CONVERTIBLE BOND (1.6%)
CONSUMER
RETAIL
(Cost $2,500)
$2,500 PETsMART Inc.
6.750% Due 11/1/04 (B) ...................... $2,614
--------
REPURCHASE AGREEMENT (15.9%)
(Cost $26,576)
26,576 UBS Securities 6.250% Due 1/2/98
with a maturity value of $26,585
(Collateralized by $27,298
U.S. Treasury Bond
8.875% Due 2/15/19) ............................ 26,576
--------
TOTAL INVESTMENTS (103.9%)
(Cost $132,043) ................................ 172,935
LIABILITES IN EXCESS OF
OTHER ASSETS (-3.9%) ........................... (6,476)
--------
TOTAL NET ASSETS (100.0%) ........................ $166,459
========
(A) SEC Rule 144 security. Requires registration under the SEC Act of 1933
before it can be offered for public sale.
(B) SEC Rule 144A security. Such security has limited markets and is traded
among "qualified institutional buyers."
+ Non-income producing security
* Securities out on loan.
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
GROWTH AND INCOME
COMMON STOCKS (94.8%)
CAPITAL GOODS
AEROSPACE (2.1%)
50,000 Boeing Co. ....................................... $2,447
--------
BUSINESS SERVICES (0.9%)
75,000 +Philip Services Corp. ............................ 1,078
--------
COMPUTER SOFTWARE &
SERVICES (9.0%)
40,000 +BMC Software Inc. ............................... 2,625
100,000 +Cadence Design Systems Inc. ..................... 2,450
37,500 +Cisco Systems Inc. .............................. 2,091
54,000 +Storage Technology Corp. ........................ 3,345
--------
10,511
--------
OTHER CAPITAL GOODS (7.4%)
30,000 Emerson Electric Co. ............................. 1,693
50,000 Ericsson L M Telephone Co. ADR Cl B .............. 1,866
40,000 General Electric Co. ............................. 2,935
30,000 Xerox Corp. ...................................... 2,214
--------
8,708
--------
22,744
--------
CONSUMER
HEALTH CARE (16.4%)
40,000 American Home Products Corp. ..................... 3,060
24,000 Bristol-Myers Squibb Co. ......................... 2,271
65,000 Lilly (Eli) & Co. ................................ 4,526
25,000 Merck & Co. ...................................... 2,656
40,000 Pfizer Inc. ...................................... 2,982
30,000 Warner Lambert Co. ............................... 3,720
--------
19,215
--------
RESTAURANTS (2.4%)
60,000 McDonald's Corp. ................................. 2,865
--------
OTHER CONSUMER (12.0%)
80,000 Carnival Corp. ................................... 4,430
65,000 Hilton Hotel Corp. ............................... 1,934
50,000 Home Depot ....................................... 2,928
62,500 Philip Morris Companies Inc. ..................... 2,832
50,000 Tandy Corp. ...................................... 1,928
--------
14,052
--------
36,132
--------
Page 14 See notes to financial statements
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
GROWTH AND INCOME (continued)
OTHER CONSUMER
CONSUMER NON-DURABLES (1.7%)
30,000 Johnson & Johnson Co. ............................ $1,976
--------
INTERMEDIATE GOODS & SERVICES
BASIC INDUSTRIES (1.8%)
50,000 Monsanto Co. ..................................... 2,100
NATURAL RESOURCES
ENERGY & RELATED (9.2%)
35,000 Dresser Industries Inc. .......................... 1,468
75,000 Energen Corp. .................................... 2,981
50,000 Exxon Corp. ...................................... 3,059
40,000 Schlumberger Ltd. ................................ 3,220
--------
10,728
--------
REAL ESTATE INVESTMENT TRUSTS
COMMERCIAL & INDUSTRIAL (6.7%)
50,000 CCA Prison Realty Trust .......................... 2,231
80,000 Crescent Real Estate Equities Inc. ............... 3,150
80,000 Duke Realty Investors Inc. ....................... 1,940
25,000 Entertainment Properties Trust ................... 484
--------
7,805
--------
HEALTH CARE (1.3%)
75,000 LTC Properties Inc. .............................. 1,556
--------
RESIDENTIAL (1.5%)
70,000 Mills Corp. ...................................... 1,715
--------
11,076
--------
INTEREST SENSITIVE
BANKS (7.9%)
40,000 BankAmerica Corp. ................................ 2,920
65,000 Bank of New York Inc. ............................ 3,758
35,000 Barnett Banks Inc. ............................... 2,516
--------
9,194
--------
INSURANCE (8.3%)
37,500 American International Group Inc. ................ 4,078
50,000 SAFECO Corp. ..................................... 2,437
60,000 Travelers Group Inc. ............................. 3,233
--------
9,748
--------
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
GROWTH AND INCOME (continued)
OTHER (6.2%)
50,000 American Express Co. ............................. $4,463
50,000 Federal National Mortgage Association ............ 2,853
--------
7,316
--------
26,258
--------
TOTAL COMMON STOCKS
(Cost $71,171) ................................. 111,014
--------
PREFERRED STOCK (1.5%)
(Cost $1,794)
INTEREST SENSITIVE
INSURANCE (1.5%)
35,000 Conseco Inc 7.000% ............................... 1,794
--------
PRINCIPAL
AMOUNT
(000'S)
- -------
EURODOLLAR DEPOSIT (1.9%)
(Cost $2,237)
$2,237 Societe Generale Bank
5.500% Due 1/2/98 ............................. 2,237
--------
TOTAL INVESTMENTS (98.2%)
(Cost $75,202) ................................. 115,045
OTHER ASSETS IN EXCESS
OF LIABILITIES (1.8%) ............................ 2,101
--------
TOTAL NET ASSETS (100.0%) ........................ $117,146
=========
+ Non-income producing security.
See notes to financial statements Page 15
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
GROWTH
COMMON STOCKS (79.6%)
CAPITAL GOODS
COMMUNICATION (0.5%)
8,000 +Advanced Fibre Communication Inc. ................ $ 233
--------
COMPUTER PERIPHERALS (0.5%)
23,500 +Network Computing Devices ........................ 220
--------
COMPUTER SOFTWARE (7.9%)
10,000 *+Flexinternational Software ....................... 155
11,000 +Parametric Technology Corp. ...................... 521
40,000 +PLATINUM Technology Inc. ......................... 1,130
57,500 +Rational Software Corp. .......................... 654
17,500 +Security Dynamics Technology Inc. ................ 626
25,000 +Segue Software Inc. .............................. 272
12,500 +Vantive Corp. .................................... 316
--------
3,674
--------
OTHER CAPITAL GOODS (7.6%)
43,000 +BE Aerospace Inc. ................................ 1,150
17,500 +Emcor Group Inc. ................................. 359
37,500 *+Hexcel Corp. ..................................... 935
250,000 *+Noise Cancellation Technology .................... 281
25,000 +ThermoQuest Corp. (A) ............................ 431
30,000 +Trident International Inc. ....................... 390
--------
3,546
--------
SEMI-CONDUCTORS & RELATED (0.9%)
10,500 +KLA - Tencor Corp ................................ 406
--------
8,079
--------
CONSUMER
BIOTECHNOLOGY (5.7%)
22,500 +BioChem Pharmaceutical Inc. ...................... 470
10,000 +Cor Therapeutics ................................. 225
8,500 +INCYTE Pharmaceuticals Inc. ...................... 382
300 +Metra Biosystems Inc. ............................ 1
14,700 *+North American Vaccine Inc. ...................... 367
10,500 +Pathogenesis Corp ................................ 390
100,000 +Ribi Immunochem Research Inc. .................... 369
60,000 +SEQUUS Pharmaceuticals Inc. ...................... 446
--------
2,650
--------
HEALTH CARE - COST
CONTAINMENT (3.9%)
22,500 +Access Health Inc. ............................... 661
22,500 Integrated Health Services Inc. .................. 702
18,500 +Vencor Inc. ...................................... 452
--------
1,815
--------
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
GROWTH (continued)
HEALTH CARE - OTHER (1.9%)
32,500* +Phycor Inc. ...................................... $ 877
--------
HEALTH CARE - PHARMACEUTICALS (0.7%)
7,000 +Dura Pharmaceuticals Inc. ........................ 321
--------
MEDIA - CELLULAR (1.4%)
30,000 +Loral Space & Communications ..................... 643
--------
MEDIA - OTHER (1.4%)
62,000 +Paging Network Inc. .............................. 666
--------
OTHER CONSUMER (4.8%)
7,500 *+Central Garden & Pet ............................. 197
11,000 +Ciena Corp ....................................... 672
10,000 +Gemstar International Group Ltd. ................. 244
20,000 *Hollinger International .......................... 280
16,000 Royal Caribbean Cruises Ltd. ..................... 853
--------
2,246
--------
RESTAURANTS (1.9%)
13,000 +Rainforest Cafe Inc. ............................. 429
12,000 +Starbucks Corp ................................... 460
--------
889
--------
RETAIL (5.9%)
8,000 +Barnett Inc. ..................................... 176
10,000 +Friedman's Inc Cl A .............................. 179
55,000 +Just for Feet Inc. ............................... 722
15,000 +Party City Corp. ................................. 484
105,000 +PETsMART Inc. .................................... 761
10,000 *+Williams Sonoma Inc. ............................. 419
--------
2,741
--------
12,848
--------
ENERGY
OIL & GAS EXPLORATION (4.5%)
157,000 +Gulf Canada Resources ........................... 1,099
25,000 +Nuevo Energy Co. ................................. 1,019
--------
2,118
--------
OIL SERVICES (3.0%)
3,500 +BJ Services Co. .................................. 252
16,000 +Noble Drilling Corp .............................. 490
9,500 +Rowan Companies .................................. 289
8,500 +Weatherford Enterra Inc. ......................... 372
--------
1,403
--------
3,521
--------
Page 16 See notes to financial statements
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
GROWTH (continued)
INTERMEDIATE GOODS & SERVICES
BASIC INDUSTRIES (3.7%)
18,800 CalMat Co. ....................................... $ 524
6,500 *+KTI Inc .......................................... 107
32,500 Lyondell Petrochemical Co. ....................... 861
62,200 *+Waxman Industries Inc. ........................... 229
--------
1,721
--------
BUSINESS SERVICES (12.8%)
422,500 *+Advanced Promotion Technology Inc. ............... 4
13,500 *+Checkpoint Systems Inc. .......................... 236
5,000 +Compuware Corp ................................... 160
30,000 +Corrections Corp. of America ..................... 1,112
20,000 +Hadco Corp ....................................... 905
33,000 *+International Network Services ................... 763
12,000 +Keane Inc. ....................................... 488
72,500 +MoneyGram Payment Systems ........................ 779
18,000 +Solectron Corp ................................... 748
13,500 +Technology Solutions ............................. 356
15,000 +Wackenhut Corrections Corp. ...................... 403
--------
5,954
--------
TRANSPORTATION (1.9%)
47,500 +America West Holdings Corp Cl B .................. 885
--------
8,560
--------
INTEREST SENSITIVE
BANKS (3.6%)
32,500 +BankUnited Financial Corp Cl A ................... 501
7,500 Coastal Bancorp Inc. ............................. 262
5,500 Seacoast Banking ................................. 212
25,000 +Staten Island Bancorp Inc. ....................... 523
5,000 Washington Federal Inc. .......................... 157
--------
1,655
--------
INSURANCE (2.3%)
39,000 +Amerin Corp. ..................................... 1,092
--------
OTHER (1.8%)
10,000 +ADVO Inc. ........................................ 195
22,000 *+Affiliated Managers Group ........................ 638
--------
833
--------
3,580
--------
REAL ESTATE INVESTMENT TRUST
RESIDENTIAL (1.0%)
20,000 Mills Corp ....................................... 490
TOTAL COMMON STOCKS
(Cost $31,003) .................................. 37,078
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
GROWTH (continued)
REPURCHASE AGREEMENT (34.9%)
(Cost $16,253)
$16,253 UBS Securities 6.250% Due 1/2/98
with maturity value of $16,259
(Collateralized by $16,546
U.S. Treasury Note
9.000% Due 11/15/18) ........................... $16,253
--------
TOTAL INVESTMENTS (114.5%)
(Cost $47,256) ................................ 53,331
LIABILITIES IN EXCESS OF
OTHER ASSETS (-14.5%) ......................... (6,774)
--------
TOTAL NET ASSETS (100.0%) ....................... $46,557
========
+ Non-income producing security.
* Security out on loan.
(A) SEC Rule 144 security. Requires registration under the SEC Act of 1933
before it can be offered for public sale.
See notes to financial statements Page 17
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
QUANTITATIVE EQUITY
COMMON STOCKS (95.4%)
BASIC MATERIALS (3.5%)
10,900 Dow Chemical Co. ................................. $1,106
14,800 Fort James Corp. ................................. 566
10,000 Rohm & Haas Co. .................................. 958
24,200 USX US Steel Group ............................... 756
--------
3,386
--------
CONSUMER CYCLICAL (11.3%)
19,700 Brunswick Corp ................................... 597
17,062 +Cendant Corp. .................................... 587
45,600 Darden Restaurants Inc. .......................... 570
40,300 Dayton Hudson Corp. .............................. 2,720
7,600 +Federated Department Stores Inc. ................. 327
37,900 Ford Motor Co. ................................... 1,845
6,400 King World Productions Inc. ...................... 370
10,400 Masco Corp ....................................... 529
16,500 New York Times Co Cl A ........................... 1,091
25,600 TJX Companies Inc. ............................... 880
10,600 VF Corp .......................................... 488
8,900 Walt Disney Co. .................................. 882
--------
10,886
--------
CONSUMER NON - CYCLICAL (11.0%)
20,200 American Stores Co. .............................. 415
28,539 Archer Daniels Midland Co. ....................... 619
14,400 Campbell Soup Co. ................................ 837
7,800 Clorox Co. ....................................... 617
10,600 Colgate- Palmolive Co. ........................... 779
16,900 Coors (Adolph) Cl B .............................. 562
9,900 Dean Foods ....................................... 589
14,300 Heinz H J Co. .................................... 727
13,300 Kellogg Co. ...................................... 660
19,000 Newell Co. ....................................... 807
28,400 PepsiCo, Inc. .................................... 1,035
30,600 Philip Morris Companies Inc. ..................... 1,387
8,500 Procter & Gamble Co. ............................. 678
16,100 Quaker Oats Co. .................................. 849
--------
10,561
--------
ENERGY (8.2%)
6,400 Coastal Corp. .................................... 396
62,000 Exxon Corp. ...................................... 3,794
31,700 Royal Dutch Petroleum Co ADR ..................... 1,718
6,600 Schlumberger Ltd. ................................ 531
18,000 Texaco Inc. ...................................... 979
8,600 Tidewater Inc. ................................... 474
--------
7,892
--------
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
QUANTITATIVE EQUITY (continued)
FINANCIAL (16.7%)
13,700 Allstate Corp .................................... $1,245
19,400 American General Corp ............................ 1,049
17,600 BankAmerica Corp. ................................ 1,285
13,300 Bankers Trust N.Y. Corp. ......................... 1,495
11,100 Chase Manhattan Corp. ............................ 1,215
23,000 Comdisco Inc. .................................... 769
12,900 Comerica Inc. .................................... 1,164
18,400 Fannie Mae ....................................... 1,050
14,400 First Chicago NBD ................................ 1,202
5,100 Golden West Financial ............................ 499
10,400 Marsh & McLennan Companies ....................... 776
22,935 Morgan Stanley Dean Witter Discover .............. 1,356
20,900 Southtrust Corp. ................................. 1,326
29,100 Travelers Group Inc. ............................. 1,568
--------
15,999
--------
HEALTH (10.7%)
17,900 Abbot Laboratories ............................... 1,174
10,500 Bristol-Myers Squibb Co. ......................... 994
38,200 Lilly (Eli) & Co. ................................ 2,660
15,100 Merck & Co. ...................................... 1,604
26,600 Schering-Plough Corp. ............................ 1,652
15,500 +Tenet Healthcare Corp. ........................... 513
10,700 Warner Lambert Co. ............................... 1,327
8,200 +Wellpoint Health Networks ........................ 346
--------
10,270
--------
INDUSTRIALS (10.1%)
16,900 Browning Ferris Industries Inc. .................. 625
6,700 Centex Corp. ..................................... 422
12,800 Cooper Industries Inc. ........................... 627
10,100 Deere & Co. ...................................... 589
12,700 Deluxe Corp. ..................................... 439
39,200 General Electric Co. ............................. 2,876
11,600 Ingersoll Rand Co. ............................... 470
17,900 International Paper Co. .......................... 772
15,100 Lubrizol Corp. ................................... 557
25,050 Parker Hannifin Corp. ............................ 1,149
11,500 Textron Inc. ..................................... 719
7,400 Tribune Co. ...................................... 461
-------
9,706
--------
TECHNOLOGY (19.2%)
14,700 +Airtouch Communications,Inc ...................... 611
33,400 Ameritech Corp. .................................. 2,689
37,600 BellSouth Corp. .................................. 2,117
14,750 Compaq Computer Corp. ............................ 833
9,300 Computer Associates International Inc. ........... 492
4,900 Eaton Corp. ...................................... 437
Page 18 See notes to financial statements
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
QUANTITATIVE EQUITY (continued)
10,200 General Dynamics Corp. ........................... $ 882
13,800 Harris Corp. ..................................... 633
14,800 Hewlett Packard Co. .............................. 925
6,000 Honeywell Inc. ................................... 411
17,500 Intel Corp. ...................................... 1,229
21,300 International Business Machines Corp. ............ 2,227
17,100 +Microsoft Corp. ................................. 2,210
16,900 +National Semiconductor .......................... 438
9,200 Pitney Bowes Inc. ................................ 827
13,100 Texas Instruments Inc. ........................... 590
11,600 Xerox Corp. ...................................... 856
--------
18,407
--------
TRANSPORTATION (1.1%)
6,000 Burlington Northern Santa Fe ..................... 558
3,900 Delta Air Lines, Inc. ............................ 464
--------
1,022
--------
UTILITIES (3.6%)
16,900 AT & T Corp. ..................................... 1,035
19,200 Edison International ............................. 522
7,400 FPL Group Inc. ................................... 438
25,200 GPU Inc. ......................................... 1,062
14,100 Washington Gas Light Co. ......................... 436
--------
3,493
--------
TOTAL COMMON STOCKS
(Cost $70,680) 91,622
--------
PRINCIPAL
AMOUNT
- ------
(000's)
U.S. GOVERNMENT
OBLIGATION (4.8%)
(Cost $4,586)
$4,600 * US Treasury Bill Due 1/22/98 ..................... 4,586
--------
TOTAL INVESTMENTS (100.2%)
(Cost $75,266) ................................. 96,208
LIABILITIES IN EXCESS OF
OTHER ASSETS (-0.2%) ........................... (153)
--------
TOTAL NET ASSETS (100.0%) ........................ $96,055
========
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
- --------- ------------
FUTURES PURCHASED
(Aggregated futures amount $4,376)
18 March S&P 500 Futures ............................ 30
--------
+ Non-income producing security.
* Securities pledged in whole or part for futures purchased.
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
INTERNATIONAL
COMMON STOCKS (109.6%)
AUSTRALIA (2.2%)
3,700 Brambles Industries Ltd. ......................... $ 73
4,000 Broken Hill Property ............................. 37
5,600 National Australia Bank Ltd. ..................... 78
--------
188
--------
AUSTRIA (1.5%)
915 OMV .............................................. 127
BELGIUM (1.1%)
215 Generale De Banque ............................... 94
DENMARK (1.0%)
1,330 Tele Danmark `B' ................................. 82
FRANCE (13.6%)
1,421 Alcatel Alsthom .................................. 181
2,282 Axa Uap .......................................... 176
975 Christian Dior ................................... 100
1,396 Eaux (Cie Generale Des) .......................... 195
1,614 Havas ............................................ 116
1,885 Lafarge .......................................... 124
921 Societe Generale ................................. 125
1,340 Total SA - Cl B .................................. 146
--------
1,163
--------
GERMANY (11.0%)
6,371 Commerzbank AG ................................... 251
2,815 Daimler Benz AG .................................. 197
676 Preussag AG ...................................... 206
534 Viag AG .......................................... 288
--------
942
--------
HONG KONG (2.2%)
7,000 Cheung Kong Holdings ............................. 46
34,400 Hong Kong & China Gas ............................ 66
11,000 Sun Hung Kai Properties .......................... 77
--------
189
--------
ITALY (5.0%)
43,393 Fiat Spa ......................................... 126
98,000 Istituto Nazionale Delle
Assicurazione ............................... 199
15,835 Telecom Italia ................................... 101
--------
426
--------
JAPAN (23.7%)
6,000 The Bank of Tokyo-Mitsubishi ..................... 83
440 Canon Sales Co. .................................. 5
80 Circle K Japan Co. ............................... 4
4,000 Eisai Co. ........................................ 61
See notes to financial statements Page 19
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
INTERNATIONAL (continued)
2,000 Fuji Photo Film Ltd. ............................. $ 76
8,000 Fujikura Cable ................................... 53
5,000 Fujitsu Ltd. ..................................... 54
15 Japan Tobacco Inc. ............................... 106
6,000 Kinden Corp. ..................................... 64
1,000 Mabuchi Motor Co. Ltd. ........................... 51
4,000 Matsushita Electric Industrial ................... 58
2,700 Meitec ........................................... 76
7,000 Mitsui Fudosan Co. ............................... 68
9,000 Mitsui & Co. ..................................... 53
5,000 Mycal Corp. ...................................... 42
800 Nintendo Co.,Ltd ................................. 79
12,000 Nippon Express Co. ............................... 60
22 Nippon Telegraph & Telephone Corp. ............... 189
260 Nippon Television Network ........................ 76
13,000 Nissan Motor Co. ................................. 54
5,000 Nitto Denko Corp. ................................ 86
4,000 Nomura Securities Co. ............................ 53
6,000 Ricoh ............................................ 74
9,000 Sanwa Shutter Corp. .............................. 45
1,000 Secom Co. Ltd. ................................... 64
5,000 Seiyo Food Systems ............................... 18
900 SMC Corp. ........................................ 79
900 Sony Corp. ....................................... 80
3,000 Taisho Pharmaceutical ............................ 77
13,000 Toray Industries Inc. ............................ 58
3,000 Toyota Motor Co. ................................. 86
--------
2,032
--------
NETHERLANDS (4.3%)
11,215 Elsevier ......................................... 181
1,364 K.L.M ............................................ 51
2,315 Philips Electronics .............................. 139
--------
371
--------
SINGAPORE (0.3%)
3,000 D.B.S. Land ...................................... 26
SPAIN (4.8%)
2,107 Argentaria CMN ................................... 128
8,340 Endesa SA ........................................ 148
3,100 Repsol ........................................... 132
--------
408
--------
SWEDEN (2.9%)
2,843 Ericsson Tele B .................................. 107
2,749 Pharmacia & Upjohn ............................... 101
3,255 Stora Kopparberg Cl A ............................ 41
--------
249
--------
NUMBER VALUE
OF SHARES SECURITY (000'S)
- --------- -------- -------
INTERNATIONAL (continued)
SWITZERLAND (7.4%)
143 Nestle ........................................... $ 214
154 Novartis AG ...................................... 250
120 Schweizerische Bankgeselschaft ................... 173
--------
637
--------
UNITED KINGDOM (28.6%)
5,710 Abbey National ................................... 102
29,325 ASDA Group ....................................... 86
4,560 Barclays ......................................... 121
3,752 Bass ............................................. 58
7,442 BBA Group ........................................ 50
3,498 British Aerospace ................................ 100
4,536 British Airways .................................. 42
5,940 British Land Co. ................................. 66
11,821 British Petroleum Co. ............................ 155
9,578 British Telecomm ................................. 75
8,400 Cable & Wireless ................................. 74
55,148 +Centrica ......................................... 81
5,294 Compass Group .................................... 65
5,875 Diageo PLC ....................................... 54
4,491 Emap ............................................. 67
5,058 General Accident ................................. 88
12,989 General Electric ................................. 84
4,387 Glaxo Wellcome ................................... 104
4,652 Granada Group .................................... 71
3,571 HSBC Holdings .................................... 91
4,629 Kingfisher ....................................... 65
5,207 Next ............................................. 59
5,620 Powergen ......................................... 73
7,004 Prudential Corp. ................................. 84
4,444 Reuters .......................................... 49
22,272 Shell Transport & Trading ........................ 161
9,786 Smithkline Beachman .............................. 100
13,227 Tomkins .......................................... 63
7,115 Wolseley ......................................... 56
2,849 Zeneca Group ..................................... 100
--------
2,444
--------
TOTAL COMMON STOCKS
(Cost $8,059) 9,378
--------
NUMBER OF
WARRANTS
- --------
WARRANTS (0.0%)
(Cost $1)
FRANCE (0.0%)
1,134 Eaux (CIE Generale Des) .......................... 1
--------
Page 20 See notes to financial statements
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
INTERNATIONAL (continued)
CONVERTIBLE BONDS (1.5%)
JAPAN (1.5%)
$9,000 Sumitomo Bank International Finance
0.75% Due 5/31/01 .............................. $72
7,500 TTB Finance Cayman
0.75% Due 9/29/49 .............................. 58
--------
TOTAL CONVERTIBLE BONDS
(Cost $168) .............................. 130
--------
TOTAL INVESTMENTS (111.1%)
(Cost $8,228) ............................ 9,509
--------
LIABILITIES IN EXCESS OF
OTHER ASSETS (-11.1%) .................... (954)
--------
TOTAL NET ASSETS (100.0%) ........................ $8,555
========
+ Non-income producing security.
INTERNATIONAL FUND
INDUSTRY CONCENTRATIONS
% OF NET VALUE
ASSETS (000'S)
------ -------
14.5% Banking .......................................... $1,242
9.3% Health & Personal Care ........................... 793
8.9% Energy Sources ................................... 758
7.7% Utilties - Electrical & Gas ...................... 656
7.3% Telecommunications ............................... 628
6.6% Business & Public Services ....................... 568
6.4% Insurance ........................................ 547
5.4% Automobiles ...................................... 463
4.7% Broadcasting & Publishing ........................ 400
4.0% Multi - Industry ................................. 340
3.7% Electrical & Electronics ......................... 316
3.2% Appliances & Household Durables .................. 277
3.1% Merchandising .................................... 270
3.0% Real Estate ...................................... 257
3.0% Recreation, Other Consumer ....................... 255
2.5% Food & Household Products ........................ 218
2.5% Financial Services ............................... 213
2.1% Building Materials ............................... 180
1.9% Beverages & Tobacco .............................. 160
1.7% Industrial Components ............................ 148
1.5% Data Processing & Reproduction ................... 128
1.2% Aerospace & Military Technology .................. 100
1.1% Transportation - Airlines ........................ 93
1.0% Miscellaneous Materials and Commodities .......... 86
0.9% Machinery & Engineering .......................... 79
0.7% Construction & Housing ........................... 64
0.7% Transportation - Road & Railway .................. 60
0.7% Leisure & Tourism ................................ 58
0.7% Chemicals ........................................ 58
0.6% Wholesale & International Trade .................. 53
0.5% Forest Products & Paper .......................... 41
111.1% Total Investments ................................ 9,509
--------
-11.1% Liabilities in Excess of
Other Assets .................................. (954)
--------
100.0% Total Net Assets ................................. $8,555
========
See notes to financial statements Page 21
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000's)
- ------- -------- -------
GOVERNMENT SECURITIES
U.S TREASURY & GOVERNMENT
AGENCY SECURITIES (133.5%)
U.S. GOVERNMENT SECURITIES (50.8%)
U.S. TREASURY BOND (5.6%)
$5,750 6.375% Due 8/15/27 ............................... $6,065
U.S. TREASURY NOTES (45.2%)
3,505 5.625% Due 11/30/98 .............................. 3,505
2,975 5.875% Due 7/31/99 ............................... 2,983
7,395 5.750% Due 9/30/99 ............................... 7,405
1,485 6.375% Due 3/31/01 ............................... 1,513
5,870 6.500% Due 5/31/01 ............................... 6,009
26,335 6.500% Due 10/15/06 .............................. 27,574
--------
48,989
--------
TOTAL U.S. GOVERNMENT SECURITIES
(Cost $54,947) ................................. 55,054
--------
U.S. GOVERNMENT AGENCIES (82.7%)
FEDERAL HOME LOAN MORTGAGE
Corporation-Pass Through
(FREDDIE MAC) (6.1%)
635 7.000% Due 1/15/08
Series 1460 I .................................. 658
1,775 7.000% Due 3/15/08
Series 1472 JC ................................. 1,852
1,311 7.000% Due 5/1/09 ................................ 1,339
2,660 7.500% Due 8/15/24
Series 1900 M .................................. 2,734
--------
6,583
--------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA) (21.1%)
1,500 9.000% Due 11/1/10 ............................... 1,589
4,031 7.000% Due 1/1/11 (c) ............................ 4,101
5,620 6.500% Due 1/1/13 (c) ............................ 5,629
11,480 7.500% Due 1/1/13-1/1/28 (c) ..................... 11,555
--------
22,874
--------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA) (21.3%)
8,157 *7.500% Due 9/15/07-8/15/17 ....................... 8,433
14,575 7.000% Due 1/15/28 (c) ........................... 14,698
--------
23,131
--------
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
GOVERNMENT SECURITIES (continued)
FEDERAL HOME LOAN BANKS
(FHLB) (25.9%)
$5,500 *Discount Note Due 1/2/98 ......................... $5,499
5,870 *Discount Note Due 1/14/98 ........................ 5,858
5,620 *Discount Note Due 1/16/98 ........................ 5,607
11,210 *Discount Note Due 1/22/98 ........................ 11,173
--------
28,137
--------
FEDERAL HOME LOAN MORTGAGE
CORPORATION (FREDDIE MAC) (8.3%)
5,610 Discount Note Due 1/20/98 ........................ 5,594
3,365 Discount Note Due 1/22/98 ........................ 3,354
--------
8,948
--------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $89,286) 89,673
--------
TOTAL INVESTMENTS (133.5%)
(Cost $144,233) 144,727
LIABILITIES IN EXCESS OF
OTHER ASSETS (-33.5%) (36,284)
--------
TOTAL NET ASSETS (100.0%) $108,443
--------
* Securities pledged in whole or part as collateral for when issued
securities.
(c) Securities purchased on a when issued basis.
Page 22 See notes to financial statements
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
INTERMEDIATE MUNICIPAL BOND
ARIZONA (0.4%)
$100 Pinal County Arizona
Industrial Development Authority
4.950% Due 12/1/09 (a) ......................... $ 100
CALIFORNIA (8.9%)
565 California Educational Facilities
Authority Revenue Refunding
College of Chiropractic
4.700% Due 11/1/01 ............................. 566
1,000 San Francisco California
City & County Refunding
Series 1 (FGIC Insured)
5.000% Due 6/15/20 ............................. 1,030
480 Simi Valley USA California
University School District
Certificates of Participation
Refunding & Capital
Improvement Projects
(AMBAC Insured)
4.800% Due 8/1/10 .............................. 486
COLORADO (1.3%)
100 Adams County Colorado
School District No. 12 Series D
General Obligation
(MBIA Insured )
5.450% Due 12/15/06 ............................ 108
45 Brighten Colorado
General Obligation
(FGIC Insured )
Zero Coupon Due 12/1/00 ........................ 40
150 Westminster Colorado Multifamily
Revenue Refunding Housing
Oasis Wexford Apartments Project
5.350% Due 12/1/25 ............................. 157
CONNECTICUT (1.5%)
85 Connecticut State Health & Education
Facilities Authority Revenue
Sacred Heart University Series D
4.800% Due 7/1/99 .............................. 86
95 Connecticut State Health & Education
Facilities Authority Revenue
Sacred Heart University Series D
5.200% Due 7/1/01 .............................. 97
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000's)
- ------- -------- -------
INTERMEDIATE MUNICIPAL BOND (continued)
$100 Connecticut State Health & Education
Facilities Authority Revenue
Sacred Heart University Series D
5.300% Due 7/1/99 .............................. $103
50 Stratford Connecticut
General Obligation Bond
(FGIC Insured)
7.000% Due 6/15/04 ............................. 58
DISTRICT OF COLUMBIA (1.3%)
300 District of Columbia
General Obligation Bond
5.000% Due 6/1/01 .............................. 303
FLORIDA (7.7%)
20 Florida State Pollution Control
Revenue Series F
5.500% Due 7/1/98 .............................. 20
340 Jacksonville Florida Electric
Authority Revenue
6.000% Due 7/1/01 .............................. 354
435 Pace Property Finance Authority
Florida Utility System Revenue
Refunding & Improvement
(AMBAC Insured)
5.000% Due 9/1/08 .............................. 445
455 Pace Property Finance Authority
Florida Utility System Revenue
Refunding & Improvement
(AMBAC Insured)
5.100% Due 9/1/09 .............................. 466
500 St. John's County Florida
Water & Sewer Revenue
(MBIA Insured)
5.250% Due 6/1/10 .............................. 529
GEORGIA (2.0%)
400 Georgia State Series D
General Obligation
6.700% Due 8/1/10 .............................. 478
ILLINOIS (11.6%)
240 Chicago Illinois
Water Revenue Refunding
(AMBAC Insured)
5.600% Due 11/1/04 ............................. 257
See notes to financial statements Page 23
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
INTERMEDIATE MUNICIPAL BOND (continued)
$875 Cook County Illinois School District
School District No. 99
(FGIC Insured)
8.500% Due 12/1/01 ............................. $1,011
100 Cook County Illinois School District
School District No. 99
(FGIC Insured)
8.400% Due 1/1/01 .............................. 111
100 Cook & DuPage Counties, Illinois
Combined School District - B
(FGIC Insured)
Zero Coupon Due 12/1/05 ........................ 70
307 Illinois Health Facilities
Authority Revenue Series A
(MBIA Insured)
7.900% Due 8/15/03 ............................. 312
100 Illinois State General Obligation
5.700% Due 6/1/98 ............................ 101
750 Springfield Illinois Electric Revenue
6.500% Due 3/1/08 .............................. 863
INDIANA (1.9%)
410 La Porte Indiana Economic
Development Revenue
Boise Cascade Corp. Project
Escrowed to Maturity
7.375% Due 6/1/01 .............................. 444
IOWA (0.5%)
100 Iowa Student Loan Liquidity Corp.
Student Loan Revenue
6.450% Due 3/1/02 ............................... 107
KANSAS (1.0%)
225 Leavenworth County Kansas
Unified School District
(FHA Insured)
5.150% Due 9/1/13 .............................. 228
KENTUCKY (2.5%)
180 Dayton Kentucky Elderly
Housing Speers Court
(FHA Insured)
5.350% Due 9/1/05 .............................. 188
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000's)
- ------- -------- -------
INTERMEDIATE MUNICIPAL BOND (continued)
$385 Kentucky State Turnpike Authority
Toll Road Revenue Series A
8.500% Due 7/1/04 .............................. $393
MASSACHUSETTS (4.1%)
250 Massachusetts Bay
Transportation Authority
General Transportation System
5.300% Due 3/1/05 .............................. 264
500 Massachusetts State
Consolidated Loan Series D
General Obligation
5.250% Due 11/1/12 ............................. 513
175 New England Education Loan
Marketing Corp. Series E
5.000% Due 7/1/99 .............................. 178
MICHIGAN (1.9%)
155 Ferris St. College
7.500% Due 8/15/03 ............................. 167
240 Michigan State Building Authority
Chippewa Correctional Facilities
Escrowed to Maturity
7.250% Due 10/1/04 ............................. 281
MINNESOTA (0.4%)
100 St. Paul Minnesota Port Authority
Commercial Development General
Revenue Fort Rd Med/Irvine
(Assets Guaranty Insured)
7.500% Due 9/1/02 .............................. 104
NEBRASKA (1.2%)
245 Nebraska Investment Finance
Authority Multi Family Revenue
Refunding Housing Wycliffe West
5.500% Due 12/1/25 ............................. 255
20 Nebraska Investment Finance
Authority Single Family
Mortgage Series C
6.500% Due 9/15/14 ............................. 21
NEVADA (1.5%)
185 Nevada Housing Division
Single Family Program
5.550% Due 10/1/02 ............................. 193
Page 24 See notes to financial statements
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000's)
------- -------- -------
INTERMEDIATE MUNICIPAL BOND (continued)
$150 Nevada State Muni Bond
Bank Project 38-39A
Escrowed to Maturity
Refunded
6.400% Due 7/1/05 .............................. $164
NEW JERSEY (2.5%)
340 Arlington Arms Financing Corp.
New Jersey Mortgage Revenue
Arlington Arms Apartments
(FHA Insured)
10.250% Due 3/1/25 ............................. 351
240 Gateway New Jersey Housing
Development Corp
Revenue Bond Section 8
(FHA Insured)
10.500% Due 8/1/25 ............................. 247
NEW YORK (5.1%)
100 Hempstead Town New York
General Obligation, Series B
(AMBAC Insured)
6.500% Due 1/1/12 .............................. 118
505 New York State Environmental
Facility Corp., Pollution
Control Revenue Series B
5.300% Due 12/15/10 ............................ 530
210 New York State Medical
Care Facilities Finance Agency
Revenue (FHA Insured)
7.875% Due 2/15/07 ............................. 215
50 New York State Urban
Development Correctional
Facilities Series G
7.100% Due 1/1/03 .............................. 53
250 Onondaga County New York
General Obligation Bond
5.875% Due 2/15/09 ............................. 278
NORTH CAROLINA (2.5%)
500 Surry County North Carolina
Pollution Control Finance Authority
9.250% Due 12/1/02 ............................. 588
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
INTERMEDIATE MUNICIPAL BOND (continued)
OHIO (0.1%)
$145 Ohio Housing Financing Agency
Single Family Mortgage
Series 1985A (FGIC Insured)
Zero Coupon Due 1/15/15 ........................ $26
OKLAHOMA (3.8%)
30 Enid Oklahoma Hospital
Authority (St. Mary's Hospital)
Escrowed to Maturity
8.000% Due 7/1/98 .............................. 30
1,625 Oklahoma County
Oklahoma Home Finance Authority
Single Family Refunding
Prerefunded
Zero Coupon Due 7/1/12 ......................... 642
200 Tulsa Oklahoma Metropolitan
Utility Authority Revenue
7.000% Due 2/1/03 ............................. 216
PENNSYLVANIA (6.9%)
500 Hempfield Pennsylvania
School District Refunding
6.700% Due 10/15/99 ............................ 504
840 Lancaster County Pennsylvania
General Obligation Bond
Series B (AMBAC Insured)
4.100% Due 11/1/03 ............................. 834
250 Pennsylvania State Industrial
Development Authority
(AMBAC Insured)
5.800% Due 7/1/09 .............................. 276
SOUTH CAROLINA (3.5%)
70 Piedmont Municipal Power Agency
South Carolina Electric Revenue
Series A Escrowed to Maturity
(FGIC Insured)
6.125% Due 1/1/07 .............................. 79
430 Piedmont Municipal Power Agency
South Carolina Electric Revenue
Series A (FGIC Insured)
6.125% Due 1/1/07 .............................. 484
See notes to financial statements Page 25
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000's)
- ------- -------- -------
INTERMEDIATE MUNICIPAL BOND (continued)
$230 Piedmont Municipal Power Agency
South Carolina Electric Refunding
Escrowed to Maturity
(MBIA Insured)
6.250% Due 1/1/09 .............................. $262
TEXAS (19.9%)
500 Cypress-Fairbanks Texas
General Obligation
Independent School District
7.300% Due 2/15/07 ............................. 603
500 Deer Park Texas Independent
School District School Building
6.375% Due 2/15/07 .............................. 574
350 El Paso Texas General Obligation
(FGIC Insured)
7.000% Due 8/15/06 .............................. 415
100 Garland Texas Independent
School District Series A
General Obligation
Zero Coupon Due 2/15/99 ........................ 96
1,100 Harris County Texas Flood District
General Obligation
Zero Coupon Due 10/1/06 ........................ 642
265 Lower Colorado River Authority
Prerefunded Revenue
6.250% Due 5/1/07 .............................. 299
1,000 Port of Houston Texas
General Obligation Bond
5.100% Due 10/1/11 ............................. 1,019
1,000 San Antonio Texas Electric & Gas
5.250% Due 2/1/10 .............................. 1,040
UTAH (1.6%)
380 Salt Lake City Utah Water
Conservancy District Revenue
Refunding Series A
Escrowed to Maturity
(MBIA Insured)
10.875% Due 10/1/02 ........................... 384
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
INTERMEDIATE MUNICIPAL BOND (continued)
VIRGINIA (2.4%)
$500 Brunswick County Virginia
Industrial Development Authority
Correctional Facilities Lease
(MBIA Insured)
5.650% Due 7/1/09 .............................. $544
100 Virginia State Housing
Development Authority
Multi Family Series A
Zero Coupon Due 11/1/17 ........................ 19
WASHINGTON (2.6%)
250 Lynnwood Washington Water &
Sewer Revenue Refunding
(FGIC Insured)
6.000% Due 12/1/07 ............................. 280
300 Washington State Motor Vehicle
Tax General Obligation
6.200% Due 3/1/08 .............................. 340
TOTAL INVESTMENTS (100.6%)
(Cost $22,808) ................................ 23,639
LIABILITIES IN EXCESS
OF OTHER ASSETS (-0.6%) ........................ (131)
-------
TOTAL NET ASSETS (100.0%) ....................... $23,508
=======
(a) Interest rate subject to change approximately every 1 to 180 days. Principal
payable on demand at periodic intervals at the Fund's option.
Page 26 See notes to financial statements
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000's)
- ------- -------- -------
GOVERNMENT MONEY MARKET
U.S. GOVERNMENT AGENCY
OBLIGATIONS (78.0%)
Federal Farm Credit Bank (7.2%)
$5,000 Discount Note Due 1/6/98 ......................... $4,996
5,000 Discount Note Due 1/26/98 ........................ 4,980
5,000 Discount Note Due 2/3/98 ......................... 4,974
-------
14,950
-------
FEDERAL HOME LOAN BANK (70.8%)
10,000 Discount Note Due 1/2/98 ......................... 9,999
5,000 Discount Note Due 1/5/98 ......................... 4,997
10,000 Discount Note Due 1/7/98 ......................... 9,991
5,000 Discount Note Due 1/8/98 ......................... 4,995
9,150 Discount Note Due 1/9/98 ......................... 9,139
4,487 Discount Note Due 1/12/98 ........................ 4,479
5,000 Discount Note Due 1/14/98 ........................ 4,990
5,000 Discount Note Due 1/16/98 ........................ 4,989
5,000 Discount Note Due 1/21/98 ........................ 4,985
4,400 Discount Note Due 1/23/98 ........................ 4,385
5,000 Discount Note Due 1/28/98 ........................ 4,979
10,000 Discount Note Due 1/30/98 ........................ 9,955
4,317 Discount Note Due 2/4/98 ......................... 4,295
2,590 Discount Note Due 2/5/98 ......................... 2,576
5,000 Discount Note Due 2/6/98 ......................... 4,973
5,000 Discount Note Due 2/11/98 ........................ 4,969
5,000 Discount Note Due 2/13/98 ........................ 4,967
5,000 Discount Note Due 2/18/98 ........................ 4,963
3,000 Discount Note Due 2/24/98 ........................ 2,975
10,000 Discount Note Due 2/25/98 ........................ 9,915
10,000 Discount Note Due 2/27/98 ........................ 9,912
5,000 Discount Note Due 3/6/98 ......................... 4,950
5,000 Discount Note Due 3/11/98 ........................ 4,946
5,000 Discount Note Due 3/12/98 ........................ 4,947
5,000 Discount Note Due 3/13/98 ........................ 4,945
-------
147,216
-------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $162,166) ................................ 162,166
-------
REPURCHASE AGREEMENT (10.6%)
(Cost $21,921)
21,921 UBS Securities 6.250% Due 1/2/98
with maturity value of $21,929
(Collateralized by $22,446
U.S. Treasury Bond
13.875% Due 5/15/11) ........................... 21,921
-------
TOTAL INVESTMENTS (88.6%)
(Cost $184,087) ................................ 184,087
OTHER ASSETS IN EXCESS
OF LIABILITIES (11.4%) .......................... 23,730
-------
TOTAL NET ASSETS (100.0%) ........................ $207,817
========
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET
ALABAMA (0.5%)
$600 McIntosh Alabama Industrial
Development Board Pollution
Control Revenue Ciba-Geigy
Corporate Project
5.100% Due 7/1/04 (a) (e) ...................... $600
ARIZONA (1.0%)
1,275 Tucson Industrial Development
Tucson City Center Parking
Garage Authority
4.275% Due 6/1/15 (a) (e) ...................... 1,275
COLORADO (3.0%)
100 Colorado Housing Finance Authority
Multi-Family Housing Revenue
(Grant Street Plaza)
4.275% Due 11/1/09 (a) (e) ..................... 100
1,700 Jefferson County Colorado
Industrial Development Revenue
Kindercare Centers Series C
3.800% Due 2/1/01 (a) (e) ...................... 1,700
2,000 Smith Creek Colorado
Metropolitan District Revenue
4.200% Due 10/1/35 (a) (e) ..................... 2,000
125 Summit County Colorado
Recreational Facilities Revenue
Refunding (Copper Mountain)
4.000% Due 4/1/17 (a) (e) ...................... 125
DELAWARE (3.1%)
4,000 Delaware Economic
Development Authority
Multifamily Housing Revenue
(School House Trust 1985)
3.900% Due 12/1/15 (a) (e) ..................... 4,000
DISTRICT OF COLUMBIA (1.1%)
700 District of Columbia General Fund
Series B-1 Recovery Bonds
5.000% Due 6/1/03 (a) (e) ...................... 700
800 District of Columbia General Fund
Series B-3 Recovery Bonds
5.000% Due 6/1/03 (a) (e) ...................... 800
See notes to financial statements Page 27
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
FLORIDA (2.1%)
$750 Florida Gulf Coast University
Certificates of Participation
Series 97
4.150% Due 8/1/27 (a) (e) ...................... $750
1,985 Orange County Florida
Industrial Development
Revenue Refunding
(Orlando-Hawaiian Motel)
3.900% Due 10/1/15 (a) (e) ..................... 1,985
GEORGIA (4.1%)
3,600 Burke County Georgia
Development Authority Pollution
Control Georgia Power Co.
5.050% Due 10/1/24 (a) (e) ...................... 3,600
1,200 Burke County Georgia Development
Authority Pollution Control
Revenue Georgia Power Co.
5.050% Due 9/1/25 (a) (e) ...................... 1,200
600 Gwinnet County Georgia
Development Authority Revenue
(Wesleyan School Project)
4.200% Due 3/1/17 (a) (e) ...................... 600
HAWAII (1.6%)
2,100 Hawaii State Housing Authority
Multifamily Revenue
(Tropicana West Project A)
3.800% Due 8/1/10 (a) (e) ...................... 2,100
ILLINOIS (9.9%)
200 Darien Industrial Development
Authority Kindercare Centers
Series C
3.900% Due 2/1/01 (a) (e) ...................... 200
800 Illinois Development Finance
Authority Industrial Development
Refunding Bond (Dart Container)
3.900% Due 8/1/25 (a) (e) ...................... 800
2,000 Illinois Educational Facilities
Authority Revenue
Field Museum National History
3.800% Due 11/1/25 (a) (e) ..................... 2,000
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
$500 Illinois Health Facilities Authority
Revenue Central Health for
NW Community Hospital
4.000% Due 10/1/15 (a) (e) ..................... $500
3,500 Illinois Health Facilities Authority
Revenue Advocate Health Care
Series B
3.650% Due 8/15/22 (a) (e) ..................... 3,500
3,550 St. Clair County Illinois Industrial
Development Board
(Winchester Apartments Project
Series 94)
4.550% Due 10/1/15 (a) (e) ..................... 3,550
2,300 Troy Grove Illinois Refunding
(Unimin Corp.)
5.015% Due 5/1/10 (a) (d) ...................... 2,300
INDIANA (6.6%)
1,185 Benton Indiana Community School
Corp. Tax Anticipation Warrants
4.250% Due 12/31/98 ............................ 1,187
720 GAF Tax-Exempt Bond Grantor
Trust Series A
4.300% Due 4/1/08 (a) (e) ...................... 720
600 Hamilton County Indiana
Option Tax Revenue Series 1997
3.900% Due 7/10/98 ............................. 600
1,000 Indiana Bond Bank
Advance Funding Notes
4.000% Due 1/21/98 ............................. 1,000
1,500 Indiana Bond Bank
Advance Funding Notes
3.900% Due 2/2/98 .............................. 1,500
1,000 Indianapolis Indiana
Economic Development
(Joint & Clutch Series 1984)
3.995% Due 12/1/14 (a) (d) ..................... 1,000
1,500 New Albany Floyd County Indiana
School Building Corp
Bond Anticipation Notes
3.950% Due 9/1/98 .............................. 1,500
Page 28 See notes to financial statements
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
$1,090 St Joseph County Indiana
Judgement Funding General
Obligation Bond
4.000% Due 6/30/98 ............................. $1,090
IOWA (0.5%)
600 Iowa Higher Education Loan Authority
Revenue (Palmer Chiropractic)
5.350% Due 4/1/27 (a) (e) ...................... 600
KANSAS (1.5%)
2,000 Salina Kansas Central Mall
(Salina Central Mall Dillard)
4.400% Due 12/1/14 (a) (e) ..................... 2,000
KENTUCKY (3.3%)
820 Boone County Kentucky Industrial
Development Bond Revenue
(Jamike/Hemmer Project)
4.000% Due 2/1/06 (a) (e) ....................... 820
430 Elva-New Harmony Oak Level
Fire Protection District
4.220% Due 12/1/31 (a) (e) ..................... 430
230 Florence Kentucky Industrial
Building Revenue
(Florence Commercial Project)
3.900 % Due 6/1/07 (a) (e) ..................... 230
1,850 Fort Thomas Kentucky
Industrial Buildings Revenue
(Carmel Manor Project)
3.900% Due 10/1/14 (a) (e) ..................... 1,850
490 Harvey Brewers Fire Protection District
Kentucky Lease Revenue Program
4.220% Due 12/1/31 (a) (e) ..................... 490
490 Muhlenberg County Airport District
Development Area Financial Trust
4.220% Due 12/1/31 (a) (e) ..................... 490
MAINE (1.3%)
1,675 Maine Health and Higher Education
Facilities Authority
(VHA New England) Series E
3.700% Due 12/1/25 (a) (e) ..................... 1,675
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
MASSACHUSETTS (0.8%)
$1,000 Brockton Massachusetts
Revenue Anticipation Notes
4.500% Due 6/30/98 ............................. $1,002
50 Massachusetts State Housing
Finance Agency Revenue
Residential Development Series C
5.600% Due 5/15/98 ............................. 50
MICHIGAN (9.8%)
960 Birmingham Michigan Economic
Development Corporation
(Brown Street Project 83)
4.525% Due 12/1/18 (a) (e) ..................... 960
2,100 Lansing Michigan Economic
Development Corp
(Atrium Office Building)
3.850% Due 5/1/15 (a) (e) ...................... 2,100
905 Leelanau County Michigan
Economic Development Corp
Revenue (American Community
Mutual Insurance Co Project)
3.850% Due 6/15/06 (a) (e) ..................... 905
1,015 Livonia Michigan Economic
Development Corporation
(American Community
Mutual Insurance)
3.850% Due 11/15/04 (a) (e) ..................... 1,015
200 McDonald Tax-Exempt
Mortgage Trust #1
4.500% Due 1/15/09 (a) (e) ..................... 196
200 Michigan State Job Development
Authority Revenue
(Kentwood Residence)
3.800% Due 11/1/14 (a) (e) ..................... 200
320 Michigan State Strategic Fund
Revenue (Tawas Bay
Association Project)
3.850% Due 12/1/01 (a) (e) ..................... 320
See notes to financial statements Page 29
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
$555 Michigan State Strategic Fund
Limited Obligation Revenue
Refunding (Woodbridge
Commercial Properties)
3.800% Due 10/15/05 (a) (e) .................... $555
2,200 Oakland County Michigan Economic
Development Corporation
(Corners Shopping Center)
3.700% Due 8/1/15 (a) (e) ...................... 2,200
3,500 Plainwell Michigan Economic
Development Corp
(Phillip Morris Inc.)
4.650% Due 11/1/07 (a) (e) ..................... 3,500
800 University of Michigan Hospital
5.100% Due 12/1/19 (a) (e) ...................... 800
MINNESOTA (2.3%)
1,120 Hutchinson Minnesota
Economic Development Authority
Revenue Refunding
(Developers Diversified)
3.850% Due 8/15/06 (a) (e) ..................... 1,120
1,109 International Falls Minnesota
Economic Development
Revenue (Developers Diversified
Limited Project)
4.370% Due 7/1/06 (a) (e) ...................... 1,109
750 Minneapolis Minnesota Series B
General Obligation
4.140% Due 12/1/05 (a) (e) ..................... 750
MISSISSIPPI (0.4%)
575 Desoto County Mississippi
Industrial Development
Revenue (American Soap
Company Project)
5.015% Due 12/1/08 (a) (d) ..................... 575
MISSOURI (4.2%)
3,600 Jackson County Industrial
Development Authority
YMCA Greater Kansas Project A
5.400% Due 11/1/16 (a) (e) ..................... 3,600
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
$1,850 Kansas City Industrial Development
Authority Hospital Revenue
Baptist Health System Series A
4.000% Due 8/1/18 (a) (e) ...................... $1,850
NEW JERSEY (1.2%)
1,000 New Jersey Economic
Development Authority
(Genlyte-Union County Project)
4.000% Due 10/15/09 (a) (e) .................... 1,000
495 New Jersey Health Care Facilities
Finance Authority Revenue
Atlantic City Medical Center
Series B
8.375% Due 8/1/20 (b) .......................... 506
NEW YORK (2.7%)
1,000 Nassau County New York
Revenue Anticipation Notes
Series A
4.250% Due 3/10/98 ............................. 1,001
360 New York City Cultural Resources
Revenue Trust (Modern Museum)
4.500% Due 1/1/99 .............................. 362
500 New York, New York Municipal
Securities Trust Receipts
4.250% Due 2/1/19 (a) (e) ...................... 500
175 New York State Power Authority
General Purpose Revenue
(Series W Refunding)
6.200% Due 1/1/98 (b) .......................... 175
1,500 North Hempstead New York
Bond Anticipation Notes Series B
4.000% Due 1/29/98 ............................. 1,500
NORTH CAROLINA (0.1%)
100 Beaufort North Carolina
Industrial Facility Pollution Control
Revenue - Texas Gulf Inc 1985
4.250% Due 12/1/00 (a) (e) ..................... 100
OHIO (13.6%)
190 Brooklyn Ohio Industrial
Development Revenue Refunding
(Clinton Road Project A)
3.850% Due 12/1/00 (a) (e) ..................... 190
Page 30 See notes to financial statements
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
$690 Buckeye Ohio Tax Exempt
Mortgage Bond Trust Series C
4.260% Due 2/1/05 (a) (e) ...................... $690
940 Cincinnati & Hamilton County
Ohio Port Authority Revenue
Refunding (Tri State Building)
3.700% Due 9/1/99 (a) (e) ...................... 940
495 Citizens Federal Tax-Exempt
Mortgage Bond Trust
4.100% Due 9/1/08 (a) (e) ...................... 495
495 Clermont County Ohio Economic
Development Revenue
(John Q. Hammons Project)
3.800% Due 5/1/12 (a) (e) ...................... 495
225 Franklin County Ohio Industrial
Development Revenue
(GSW Building Association Ltd.)
3.800% Due 11/1/15 (a) (e) ..................... 225
1,665 Lakewood Ohio Hospital
Revenue (Hospital
Improvement Series 1983)
4.180% Due 11/1/10 (a) (e) ..................... 1,665
1,200 Lorain County Industrial
Development Authority - Living &
Hospital Facilities Elyria United
Methodist Village Project
4.000% Due 6/1/02 (a) (e) ...................... 1,200
916 McDonald Tax Exempt Mortgage
Trust #1
4.500% Due 1/15/09 (a) (e) ..................... 916
1,035 Montgomery County Ohio
Economic Development Revenue
(Wayne Town Association)
3.800% Due 10/1/99 (a) (e) ..................... 1,035
1,285 Ohio Company Tax Exempt
Mortgage Trust Series 2
4.140% Due 6/15/03 (a) (e) ..................... 1,285
1,270 Riverside Ohio Economic
Development Revenue
(Riverside Association Project)
3.800% Due 9/1/12 (a) (e) ...................... 1,270
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
$930 Riverside Ohio Economic
Development Revenue
(Wright Point Association)
3.800% Due 9/1/10 (a) (e) ...................... $930
2,000 Stark County Ohio Health Care
Facilities (Canton Christian
Home Project) Series 90
3.750% Due 9/1/15 (a) (e) ...................... 2,000
555 Stark County Ohio Health Care
Facility (Canton Christian Home)
3.800% Due 9/15/16 (a) (e) ..................... 555
275 Stark County Ohio Industrial
Development Revenue
(Belpar Professional Building)
3.850% Due 10/1/04 (a) (e) ..................... 275
1,925 Stark County Ohio Industrial
Development Revenue
(Newmarket Parking Ltd.)
3.850% Due 11/1/14 (a) (e) ..................... 1,925
1,550 Willoughby Hills Ohio Industrial
Development Revenue
(Renaissance Properties Project)
3.850% Due 12/15/14 (a) (e) .................... 1,550
OKLAHOMA (1.0%)
1,250 Tulsa County Oklahoma Industrial
Development Authority
Healthcare Revenue
Laureate Psychiatric Center
3.900% Due 12/15/08 (a) (e) .................... 1,250
PENNSYLVANIA (7.5%)
815 Commonwealth Tax-Exempt
Mortgage Bond Trust Series A
4.050% Due 11/1/05 (a) (e) ..................... 815
196 McDonald Tax Exempt Mortgage
Trust #1
4.500% Due 1/15/09 (a) (e) ..................... 196
3,250 Montgomery County Pennsylvania
Higher Education & Loan
Series 96A
4.000% Due 8/1/21 (a) (e) ...................... 3,250
See notes to financial statements Page 31
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
$1,500 Montgomery County Pennsylvania
Higher Education & Loan
Series 97A
4.000% Due 4/1/17 (a) (e) ...................... $1,500
1,000 Pennsylvania State Higher Education
Facilities Authority Revenue
Carnegie Mellon University
Series A
4.850% Due 11/1/25 (a) (e) ..................... 1,000
1,200 Pennsylvania State Higher Education
Facilities Authority Revenue
Thomas Jefferson University
Series B
3.800% Due 6/1/07 (a) (e) ...................... 1,200
1,800 Schuylkill County Pennsylvania
Industrial Development Authority
Resource Recovery Revenue NE
Power Series A
3.700% Due 12/1/02 (a) (e) ..................... 1,800
TENNESSEE (3.3%)
375 Clarksville Refunding General
Obligation
5.100% Due 2/1/98 .............................. 375
2,700 Franklin County Tennessee Health
& Educational Facilities Revenue
(University of the South Sewanee)
3.800% Due 9/1/10 (a) (e) ...................... 2,700
1,280 GAF Tax-Exempt Bond Grantor
Trust Series A
4.300% Due 4/1/08 (a) (e) ...................... 1,280
TEXAS (7.1%)
1,400 Harris County Texas
Multifamily Housing Revenue
(Country Scape Development)
4.525% Due 4/1/07 (a) (e) ...................... 1,400
650 NCNB Pooled Tax Exempt Trust
Certificate of Participation
Series 1990-B
4.250% Due 11/15/20 (B)(a)(d) .................. 650
2,485 Port of Corpus Christi Texas
Industrial Development
(Lantana Corp. Project)
3.855% Due 7/1/02 (a) (e) ...................... 2,485
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
$2,000 San Antonio Texas Electric & Gas
3.800% Due 2/1/20 (a) (e) ...................... $2,000
2,650 Waxahachie Texas Industrial
Development Authority
(Dart Container Project
Series 1985)
3.825% Due 4/1/06 (a) (d) ...................... 2,650
VERMONT (0.3%)
425 Vermont Industrial Development
Authority Hydroelectric Revenue
Bond Central Vermont Public
Service Corp.
3.950% Due 12/1/13 (a) (e) ..................... 425
VIRGINIA (3.2%)
1,100 Richmond Virginia Revenue Bond
4.200% Due 6/30/01 (a) (e) ..................... 1,100
2,000 Richmond Virginia Public Utilities
Revenue Series A
7.900% Due 1/15/08 (b) ......................... 2,042
1,000 Rockingham County Virginia
Industrial Development Authority
(Merck & Company Inc. Project)
4.650% Due 10/1/22 (a) (e) ..................... 1,000
WASHINGTON (0.8%)
1,055 Washington State Housing Finance
Community Non-Profit Housing
Revenue (Emerald Heights Project)
5.100% Due 1/1/21 (a) (e) ...................... 1,055
WEST VIRGINIA (2.9%)
3,100 Marshall County West Virginia
Pollution Control Revenue
Mountaineer Carbon Co.
4.900% Due 12/1/20 (a) (e) ..................... 3,100
680 Wood County West Virginia
Industrial Development Revenue
(Aga Gas Inc Project)
3.900% Due 10/1/98 (a) (e) ..................... 680
WISCONSIN (5.8%)
910 De Pere Wisconsin School District
4.100% Due 10/28/98 ............................ 911
Page 32 See notes to financial statements
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
SCHEDULES OF INVESTMENTS AT DECEMBER 31, 1997
PRINCIPAL
AMOUNT VALUE
(000'S) SECURITY (000'S)
- ------- -------- -------
TAX FREE MONEY MARKET (continued)
$3,000 Fox Point & Bayside Wisconsin
Joint School District
Bond Anticipation Notes
4.200% Due 4/10/98 $3,001
1,000 Oregon Wisconsin School District
Tax Revenue Anticipation Notes
4.220% Due 9/16/98 1,001
2,600 University of Wisconsin Hospital &
Clinics Authority Revenue
3.700% Due 4/1/26 (a) (e) 2,600
WYOMING (1.0%)
1,190 Cheyenne County Wyoming
Economic Development
Revenue Bonds (Holiday Inn)
3.900% Due 10/1/10 (a) (e) 1,190
100 Sweetwater County Wyoming
Pollution Control Revenue
(Idaho Power) Series C
5.100% Due 7/15/26 (a) (e) 100
-------
TOTAL INVESTMENTS (107.6%)
(Cost $139,915) 139,915
LIABILITIES IN EXCESS OF
OTHER ASSETS (-7.6%) (9,832)
-------
TOTAL NET ASSETS (100.0%) $130,083
========
(B) SEC Rule 144A Security. Such security has limited markets and is traded
among "qualified institutional buyers."
(a) Interest rate subject to change approximately every 1 to 180 days. Principal
payable on demand at periodic intervals at the Fund's option.
(b) Prerefunded
(d) Coupon fluctuates with the Prime Rate (Prime is the rate on corporate loans
posted by at least 75% of the nation's 30 largest banks).
(e) Coupon fluctuates with remarket value.
See notes to financial statements Page 33
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES AT DECEMBER 31, 1997
<TABLE>
<CAPTION>
GROWTH AND QUANTITATIVE
$ in Thousands TUDOR INCOME GROWTH EQUITY
- -------------- ----- ------ ------ ------
MONEY MARKET
ASSETS
<S> <C> <C> <C> <C> <C>
Investments at value (+) ............................ $ 146,359 $ 115,045 $ 37,078 $ 96,208
Investments in Repurchase Agreements,at value (+) ... 26,576 0 16,253 0
Cash ................................................ 1 0 0 0
Receivable for securities sold ...................... 2,797 1,710 8,159 0
Receivable for Fund shares sold ..................... 589 400 1,465 101
Dividends and interest receivable ................... 131 166 24 150
Other assets ........................................ 13 7 4 7
--------- --------- -------- --------
176,466 117,328 62,983 96,466
--------- --------- -------- --------
LIABILITIES
Distributions payable ............................... 0 0 0 0
Payable to custodian bank ........................... 0 0 0 286
Payable for investment securities purchased ......... 4,859 0 429 0
Payable for Fund shares redeemed .................... 4,921 46 15,916 11
Unrealized depreciation on forward currency contracts 0 0 0 0
Accrued investment advisory fee payable - Note 5 .... 132 73 37 63
Accrued administration fee payable - Note 5 ......... 7 6 4 4
Payable for variation margin ........................ 0 0 0 1
Accrued expenses .................................... 88 57 40 46
--------- --------- -------- --------
10,007 182 16,426 411
--------- --------- -------- --------
NET ASSETS .................................... 166,459 117,146 46,557 96,055
========= ========= ======== ========
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, at par ............... 2,531 3,336 1 16
Paid-in surplus ..................................... 120,321 73,588 37,400 72,722
Accumulated undistributed net investment income/
(distributions in excess of net investment income) 98 243 62 382
Undistributed net realized gains on investments,
futures, options and currencies/(Distributions
in excess of realized gains on investments,
futures, options and currencies) ................. 2,617 136 3,019 1,963
Net unrealized appreciation on
investments, futures and currencies .............. 40,892 39,843 6,075 20,972
--------- --------- -------- --------
NET ASSETS APPLIED TO OUTSTANDING SHARES ............ 166,459 117,146 46,557 96,055
========= ========= ======== ========
CAPITAL SHARES (AUTHORIZED SHARES UNLIMITED)
Outstanding ......................................... 7,601 3,336 409 16,452
========= ========= ======== ========
Par Value ........................................... $ .33 1/3 $ 1.00 $ 0.001 $ 0.001
========= ========= ======== ========
Net asset value per share ........................... $ 21.90 $ 35.11 $ 113.74 $ 5.84
========= ========= ======== ========
(+) Investments at cost ............................. 132,043 75,202 47,256 75,266
UNREALIZED APPRECIATION/(DEPRECIATION): *
Gross appreciation ............................... 42,526 40,399 8,633 22,157
Gross depreciation ............................... (1,634) (556) (2,558) (1,185)
--------- --------- -------- --------
NET UNREALIZED APPRECIATION ......................... 40,892 39,843 6,075 20,972
========= ========= ======== ========
Page 34
<PAGE>
INTERMEDIATE
GOVERNMENT MUNICIPAL GOVERNMENT TAX FREE
$ in Thousands INTERNATIONAL SECURITIES BOND MONEY MARKET MONEY MARKET
- -------------- ------------- ---------- ---- ------------ ------------
ASSETS
Investments at value (+) ............................ $ 9,509 $ 144,727 $ 23,639 $ 162,166 $139,915
Investments in Repurchase Agreements,at value (+) ... 0 0 0 21,921 0
Cash ................................................ 0 112 55 1 732
Receivable for securities sold ...................... 202 33,210 0 0 0
Receivable for Fund shares sold ..................... 1 731 63 27,400 2,716
Dividends and interest receivable ................... 29 888 368 4 1,100
Other assets ........................................ 1 4 7 4 9
--------- --------- --------- --------- --------
9,742 179,672 24,132 211,496 144,472
--------- --------- --------- --------- --------
LIABILITIES
Distributions payable ............................... 0 476 89 0 9
Payable to custodian bank ........................... 974 0 0 0 0
Payable for investment securities purchased ......... 148 70,600 474 0 11,763
Payable for Fund shares redeemed .................... 5 26 31 3,500 2,499
Unrealized depreciation on forward currency contracts 4 0 0 0 0
Accrued investment advisory fee payable - Note 5 .... 14 56 5 79 54
Accrued administration fee payable - Note 5 ......... 0 4 0 6 4
Payable for variation margin ........................ 0 0 0 0 0
Accrued expenses .................................... 42 67 25 94 60
--------- --------- --------- --------- --------
1,187 71,229 624 3,679 14,389
--------- --------- --------- --------- --------
NET ASSETS .................................... 8,555 108,443 23,508 207,817 130,083
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, at par ............... 8 12 2 208 130
Paid-in surplus ..................................... 7,462 147,831 22,782 209,624 129,972
Accumulated undistributed net investment income/
(distributions in excess of net investment income) (23) 3 1 0 0
Undistributed net realized gains on investments,
futures, options and currencies/(Distributions
in excess of realized gains on investments,
futures, options and currencies) ................. (168) (39,887) (108) (2,015) (19)
Net unrealized appreciation on
investments, futures and currencies .............. 1,276 494 831 0 0
--------- --------- --------- --------- --------
NET ASSETS APPLIED TO OUTSTANDING SHARES ............ 8,555 108,443 23,508 207,817 130,083
========= ========= ========= ========= ========
CAPITAL SHARES (AUTHORIZED SHARES UNLIMITED)
Outstanding ......................................... 843 11,611 2,249 208,091 130,104
========= ========= ========= ========= ========
Par Value ........................................... $ 0.01 $ 0.001 $ 0.001 $ 0.001 $ 0.001
========= ========= ========= ========= ========
Net asset value per share ........................... $ 10.15 $ 9.34 $ 10.45 $ 1.00 $ 1.00
========= ========= ========= ========= ========
(+) Investments at cost ............................. 8,228 144,233 22,808 184,087 139,915
UNREALIZED APPRECIATION/(DEPRECIATION): *
Gross appreciation ............................... 1,817 496 837 0 0
Gross depreciation ............................... (541) (2) (6) 0 0
--------- --------- --------- --------- --------
NET UNREALIZED APPRECIATION ......................... 1,276 494 831 0 0
========= ========= ========= ========= ========
<FN>
* Based on cost of securities for Federal Income tax purposes which does not
differ from book cost.
</FN>
</TABLE>
See notes to financial statements
Page 35
<PAGE>
WEISS, PECK & GREER MUTUAL FU NDS
STATEMENTS OF OPERATIONS FOR YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
GROWTH AND QUANTITATIVE
TUDOR INCOME GROWTH EQUITY
----- ------ ------ ------
$ in Thousands
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Dividends ...................................................... $ 498 $ 1,811 $ 175 $ 1,985
Interest ....................................................... 377 124 214 166
Income from securities loaned - Note 4 ......................... 48 0 19 0
Class action litigation settlements ............................ 476 6 219 3
-------- -------- ------- --------
1,399 1,941 627 2,154
-------- -------- ------- --------
EXPENSES:
Investment advisory fee - Note 5 ............................... 1,587 759 475 783
Transfer agent fees and expenses ............................... 204 81 27 52
Administration fees - Note 5 ................................... 99 69 38 42
Custodian fees and expenses .................................... 81 17 33 31
Fund accounting fees and expenses .............................. 76 43 29 45
Professional fees .............................................. 64 47 44 44
Trustees' fees and expenses .................................... 22 21 20 20
Registration fees .............................................. 19 18 21 13
Shareholders' reports .......................................... 10 9 9 14
Other expenses ................................................. 18 13 10 35
-------- -------- ------- --------
2,180 1,077 706 1,079
Less fees waived by adviser .................................... 0 0 0 0
Less reimbursement by adviser .................................. 0 0 0 0
Less expenses paid indirectly - Note 7 ......................... (3) (3) (2) (3)
-------- -------- ------- --------
2,177 1,074 704 1,076
-------- -------- ------- --------
NET INVESTMENT INCOME/(LOSS) ................................... (778) 867 (77) 1,078
-------- -------- ------- --------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS,
FUTURES, OPTIONS AND CURRENCIES:
Net realized gain/(loss) on investments ............... 27,744 12,903 9,380 18,088
Net realized (loss) on currencies ..................... (12) 0 (5) 0
Net change in unrealized appreciation/(depreciation) on
investments, futures and options ............. (6,932) 16,703 (2,179) 4,604
Net change in unrealized depreciation on currencies ... 0 0 0 0
-------- -------- ------- --------
NET GAIN/(LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND
CURRENCIES ............................................ 20,800 29,606 7,196 22,692
-------- -------- ------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............................. 20,022 30,473 7,119 23,770
======== ======== ======= ========
</TABLE>
Page 36 See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT
GOVERNMENT MUNICIPAL MONEY MONEY
$ in Thousands INTERNATIONAL SECURITIES BOND MARKET MARKET
- -------------- ------------- ---------- ---- ------ ------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Dividends ...................................................... $ 216 $ 0 $ 0 $ 0 $ 0
Interest ....................................................... 16 7,491 1,128 8,582 5,086
Income from securities loaned - Note 4 ......................... 0 17 0 0 0
Class action litigation settlements ............................ 2 0 0 0 0
------- ------- ------- ------- -------
234 7,508 1,128 8,582 5,086
------- ------- ------- ------- -------
EXPENSES:
Investment advisory fee - Note 5 ............................... 62 702 96 780 650
Transfer agent fees and expenses ............................... 39 53 35 182 84
Administration fees - Note 5 ................................... 0 51 0 72 47
Custodian fees and expenses .................................... 22 23 4 29 23
Fund accounting fees and expenses .............................. 24 50 21 65 55
Professional fees .............................................. 46 64 29 55 44
Trustees' fees and expenses .................................... 18 21 18 21 20
Registration fees .............................................. 13 11 16 29 23
Shareholders' reports .......................................... 6 14 6 12 11
Other expenses ................................................. 6 19 15 21 14
------- ------- ------- ------- -------
236 1,008 240 1,266 971
Less fees waived by adviser .................................... 0 0 (56) 0 0
Less reimbursement by adviser .................................. 0 0 (4) 0 0
Less expenses paid indirectly - Note 7 ......................... (3) (2) (2) (5) (10)
------- ------- ------- ------- -------
233 1,006 178 1,261 961
------- ------- ------- ------- -------
NET INVESTMENT INCOME/(LOSS) ................................... 1 6,502 950 7,321 4,125
------- ------- ------- ------- -------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS,
FUTURES, OPTIONS AND CURRENCIES:
Net realized gain/(loss) on investments ............... (989) 1,562 34 0 (4)
Net realized (loss) on currencies ..................... (196) 0 0 0 0
Net change in unrealized appreciation/(depreciation) on
investments, futures and options ............. 691 307 652 0 0
Net change in unrealized depreciation on currencies ... (19) 0 0 0 0
------- ------- ------- ------- -------
NET GAIN/(LOSS) ON INVESTMENTS, FUTURES, OPTIONS AND
CURRENCIES ............................................ 387 1,869 686 0 (4)
------- ------- ------- ------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............................. 388 8,371 1,636 7,321 4,121
======= ======= ======= ======= =======
</TABLE>
See notes to financial statements
Page 37
<PAGE>
WEISS, PECK & GREER MUTUAL F UNDS
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
GROWTH AND
TUDOR INCOME GROWTH
----- ------ ------
$ in Thousands
1997 1996 1997 1996 1997 1996
---- ---- ---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income/(loss) ...................... ($ 778) ($ 1,042) $ 867 $ 1,107 ($ 77) ($ 43)
Net realized gain/(loss) on
investments, futures,
options, and currencies ........................ 27,732 30,159 12,903 7,405 9,375 13,594
Net change in unrealized
appreciation/(depreciation)
on investments, futures,
options and currencies ......................... (6,932) 1,416 16,703 7,840 (2,179) (2,903)
--------- --------- --------- -------- --------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... 20,022 30,533 30,473 16,352 7,119 10,648
--------- --------- --------- -------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ..................... 0 0 (735) (1,001) 0 0
From capital gains ............................. (26,044) (27,250) (13,500) (6,957) (7,513) (13,157)
--------- --------- --------- -------- --------- ---------
NET DECREASE DUE TO
DISTRIBUTIONS .................................. (26,044) (14,235) (7,958) (7,513) (13,157) (13,157)
--------- --------- --------- -------- --------- ---------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
RECEIVED ON ISSUANCE:
Shares sold .................................... 398,240 157,573 19,356 10,378 250,575 120,071
Distributions reinvested ....................... 24,010 24,493 12,892 7,047 7,513 12,286
Shares redeemed ................................ (431,139) (169,513) (14,277) (10,239) (273,976) (127,462)
--------- --------- --------- -------- --------- ---------
NET INCREASE/(DECREASE) FROM
CAPITAL SHARE TRANSACTIONS ..................... (8,889) 12,553 17,971 7,186 (15,888) 4,895
--------- --------- --------- -------- --------- ---------
TOTAL INCREASE/(DECREASE)
IN NET ASSETS .................................. (14,911) 15,836 34,209 15,580 (16,282) 2,386
NET ASSETS:
Beginning of year ................................. 181,370 165,534 82,937 67,357 62,839 60,453
--------- --------- --------- -------- --------- ---------
End of year + ..................................... 166,459 181,370 117,146 82,937 46,557 62,839
========= ========= ========= ======== ========= =========
+ Includes undistributed net
investment income/
(distributions in excess of
net investment income) ........................ 98 (358) 243 207 62 (205)
Transactions in shares of the funds (in thousands):
Sold ........................................... 16,664 6,124 549 366 2,055 861
Reinvestment of distributions .................. 1,115 1,057 368 238 67 104
Redeemed ....................................... (17,969) (6,604) (410) (364) (2,243) (918)
--------- --------- --------- -------- --------- ---------
Net increase/(decrease) ........................... (190) 577 507 240 (121) 47
========= ========= ========= ======== ========= =========
</TABLE>
<TABLE>
<CAPTION>
QUANTITATIVE GOVERNMENT
EQUITY INTERNATIONAL SECURITIES
------ ------------- ----------
1997 1996 1997 1996 1997 1996
$ in Thousands ---- ---- ---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income/(loss) ...................... $ 1,078 $ 2,219 $ 1 $ 41 $ 6,502 $ 8,454
Net realized gain/(loss) on
investments, futures,
options, and currencies ........................ 18,088 29,051 (285) 1,469 1,562 (1,080)
Net change in unrealized
appreciation/(depreciation)
on investments, futures,
options and currencies ......................... 4,604 (5,583) 672 (887) 307 (2,578)
--------- --------- -------- -------- --------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... 23,770 25,687 388 623 8,371 4,796
--------- --------- -------- -------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ..................... (1,032) (1,873) (7) (44) (6,446) (8,400)
From capital gains ............................. (18,970) (26,218) (348) (1,393) 0 0
--------- --------- -------- -------- --------- ---------
NET DECREASE DUE TO
DISTRIBUTIONS .................................. (20,002) (28,091) (355) (1,437) (6,446) (8,400)
--------- --------- -------- -------- --------- ---------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
RECEIVED ON ISSUANCE:
Shares sold .................................... 10,292 40,334 1,504 2,535 9,057 8,570
Distributions reinvested ....................... 19,631 25,939 353 1,284 4,387 5,278
Shares redeemed ................................ (40,086) (94,620) (6,496) (4,038) (27,730) (61,018)
--------- --------- -------- -------- --------- ---------
NET INCREASE/(DECREASE) FROM
CAPITAL SHARE TRANSACTIONS ..................... (10,163) (4,639) (4,639) (219) (14,286) (47,170)
--------- --------- -------- -------- --------- ---------
TOTAL INCREASE/(DECREASE)
IN NET ASSETS .................................. (6,395) (30,751) (4,606) (1,033) (12,361) (50,774)
NET ASSETS:
Beginning of year ................................. 102,450 133,201 13,161 14,194 120,804 171,578
--------- --------- -------- -------- --------- ---------
End of year + ..................................... 96,055 102,450 8,555 13,161 108,443 120,804
========= ========= ======== ======== ========= =========
+ Includes undistributed net
investment income/
(distributions in excess of
net investment income) ........................ 382 336 (23) (41) 3 8
Transactions in shares of the funds (in thousands):
Sold ........................................... 1,618 5,658 142 224 989 929
Reinvestment of distributions .................. 3,361 4,345 35 124 476 575
Redeemed ....................................... (5,933) (12,053) (613) (358) (3,003) (6,638)
--------- --------- -------- -------- --------- ---------
Net increase/(decrease) ........................... (954) (2,050) (436) (10) (1,538) (5,134)
========= ========= ======== ======== ========= =========
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE
MUNICIPAL GOVERNMENT TAX FREE
BOND MONEY MARKET MONEY MARKET
---- ------------ ------------
1997 1996 1997 1996 1997 1996
$ in Thousands ---- ---- ---- ---- ---- ----
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income/(loss) ...................... $ 950 $ 657 $ 7,321 $ 6,130 $ 4,125 $ 3,940
Net realized gain/(loss) on
investments, futures,
options, and currencies ........................ 34 5 0 7 (4) (3)
Net change in unrealized
appreciation/(depreciation)
on investments, futures,
options and currencies ......................... 652 (46) 0 0 0 0
-------- ----------- ----------- ----------- ----------- ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... 1,636 616 7,321 6,137 4,121 3,937
-------- ----------- ----------- ----------- ----------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ..................... (950) (657) (7,321) (6,132) (4,125) (3,940)
From capital gains ............................. 0 0 0 0 0 0
-------- ----------- ----------- ----------- ----------- ------
NET DECREASE DUE TO
DISTRIBUTIONS .................................. (950) (657) (7,321) (6,132) (4,125) (3,940)
-------- ----------- ----------- ----------- ----------- ------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
RECEIVED ON ISSUANCE:
Shares sold .................................... 13,254 6,115 1,653,080 1,206,518 1,058,249 1,110,592
Distributions reinvested ....................... 564 473 7,078 6,163 3,978 3,991
Shares redeemed ................................ (6,210) (4,063) (1,605,127) (1,191,110) (1,049,563)(1,118,911)
-------- ----------- ----------- ----------- ----------- ----------
NET INCREASE/(DECREASE) FROM
CAPITAL SHARE TRANSACTIONS ..................... 7,608 2,525 55,031 21,571 12,664 (4,328)
-------- ----------- ----------- ----------- ----------- ---------
TOTAL INCREASE/(DECREASE)
IN NET ASSETS .................................. 8,294 2,484 55,031 21,576 12,660 (4,331)
NET ASSETS:
Beginning of year ................................. 15,214 12,730 152,786 131,210 117,423 121,754
-------- ----------- ----------- ----------- ----------- ---------
End of year + ..................................... 23,508 15,214 207,817 152,786 130,083 117,423
======== =========== =========== =========== =========== ========
+ Includes undistributed net
investment income/
(distributions in excess of
net investment income) ........................ 1 1 0 0 0 0
Transactions in shares of the funds (in thousands):
Sold ........................................... 1,301 607 1,653,080 1,206,516 1,058,249 1,110,592
Reinvestment of distributions .................. 55 47 7,078 6,163 3,978 3,991
Redeemed ....................................... (607) (402) (1,605,127) (1,191,110) (1,049,563)(1,118,911)
-------- ----------- ----------- ----------- ------------ ----------
Net increase/(decrease) ........................... 749 252 55,031 21,569 12,664 (4,328)
======== =========== =========== =========== =========== ==========
</TABLE>
See notes to financial statements Page 39
<PAGE>
WEISS PECK & GREER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
1. - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
- ------------
The following are open-end management investment companies registered under
the Investment Company Act of 1940 (the "Act"):
WPG Tudor Fund ("Tudor")
WPG Growth and Income Fund ("Growth and Income")
WPG Growth Fund ("Growth")
Weiss, Peck & Greer Funds Trust ("WPG Funds Trust"):
WPG Quantitative Equity Fund ("Quantitative Equity")
WPG Government Securities Fund ("Government Securities")
WPG Intermediate Municipal Bond Fund ("Municipal Bond")
WPG Government Money Market Fund ("Government Money Market")
WPG Tax Free Money Market Fund ("Tax Free Money Market")
Weiss, Peck & Greer International Fund ("International")
Each fund is diversified.
Government Money Market and Tax Free Money Market are money market funds
that seek to maintain continuous net asset values of $1.00. The following
is a summary of the significant accounting policies followed by the funds
in the preparation of the financial statements. These policies are in
conformity with generally accepted accounting principles.
PORTFOLIO VALUATION
- -------------------
COMMON STOCK - Securities listed or admitted to trading on a national
securities exchange, including options, are valued at the last sale price,
on such exchange, as of the close of regular trading on the New York Stock
Exchange ("NYSE") on the day the net asset value calculation is made.
Unlisted securities and listed securities for which there are no sales
reported on the valuation date are valued at the mean between the most
recent bid and asked prices.
BONDS - Bonds and other fixed income securities (other than short-term
obligations but including listed issues) are valued by a pricing service
which utilizes both dealer-supplied valuations and electronic data
processing techniques which take into account appropriate factors such as
institutional-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other
market data, without exclusive reliance upon quoted prices, exchanges or
over-the-counter prices, when such valuations are believed to reflect the
market value of such securities.
MONEY MARKET SECURITIES - Investments are valued at amortized cost, which
has been determined by the Funds' Board of Trustees to represent the fair
value of the Fund's investments.
FOREIGN SECURITIES - Securities listed or admitted to trading on an
international securities exchange, including options, are valued at the
last sale price, at the close of the primary international exchange on the
day the net asset value calculation is made. Unlisted securities and listed
securities for which there are no sales reported on the valuation date are
valued at the mean between the most recent bid and ask prices.
OTHER SECURITIES - Other securities and assets for which market quotations
are not readily available are valued at their fair value as determined, in
good faith, by the Funds' Valuation Committee as authorized by the Funds'
Board of Trustees.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME
- ---------------------------------------------
Securities transactions are recorded on a trade date basis. Realized gains
and losses from securities transactions are recorded utilizing the specific
identification method. Dividend income is recognized on the ex-dividend
date and interest income is recognized on an accrual basis. Discounts on
fixed income securities are accreted to interest income over the life of
the security or until an applicable call date if sooner, with a
corresponding increase in cost basis; premiums are amortized on municipal
securities only, with a corresponding decrease in cost basis.
Page 40
<PAGE>
WEISS PECK & GREER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
FEDERAL INCOME TAXES
- --------------------
The Funds intend to comply with the requirements of the Internal Revenue
Code that pertain to regulated investment companies and to distribute all
of their taxable income to their shareholders. No federal income tax or
excise tax provision is required. As of December 31, 1997, the following
funds had capital loss carryforwards:
(in thousands)
YEAR OF EXPIRATION
------------------
FUND 2001 2002 2003 2004 2005
---- ---- ---- ---- ---- ----
Government Securities -- 18,940 20,113 753 --
Municipal Bond -- 100 8 -- --
Government Money Market -- 2,014 -- -- 2
Tax Free Money Market 11 -- 1 3 4
DISTRIBUTION TO SHAREHOLDERS
- ----------------------------
DIVIDENDS FROM NET INVESTMENT INCOME - Distributions are recorded on the
ex-dividend date. Dividends from net investment income are declared and
paid annually when available for the Tudor, Growth, Quantitative Equity and
International Funds and quarterly for the Growth & Income Fund. Dividends
from net investment income are declared daily and paid monthly for the
Government Securities, Municipal Bond, Government Money Market and Tax Free
Money Market Funds.
DISTRIBUTIONS FROM CAPITAL GAINS - Distributions from capital gains are
declared by December 31 of the year in which they are earned and are paid
by January 31 of the following year. To the extent that net realized
capital gains can be offset by capital loss carryovers, if any, it is the
policy of the Funds not to distribute such gains.
The character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are due to differing
treatments for items such as mortgage backed securities, net operating
losses, deferral of wash sale losses, options and futures, and post October
losses.
ORGANIZATION EXPENSES
- ---------------------
Organizational and initial offering expenses of approximately $97,000 and
$77,000 for the Quantitative Equity Fund and Municipal Bond Fund,
respectively, were deferred and are being amortized on a straight line
basis over a sixty-month period.
REPURCHASE AGREEMENTS (TUDOR, GROWTH, GOVERNMENT SECURITIES,
GOVERNMENT MONEY MARKET)
- -----------------------
It is each Funds' policy to take possession of securities or other assets
purchased under agreements to resell. The securities purchased under
agreements to resell are marked to market every business day to ensure that
the value of the "collateral" is at least equal to the value of the loan,
including the accrued interest earned thereon, plus sufficient additional
market value as is considered necessary to provide a margin of safety.
FUTURES (TUDOR, GROWTH, QUANTITATIVE EQUITY, INTERNATIONAL,
GOVERNMENT SECURITIES)
- ----------------------
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a
contract, a Fund is required to pledge to the broker an amount of cash
and/or securities equal to the minimum "initial margin" requirements of the
exchange. Pursuant to the contract, the Fund agrees to receive from, or pay
to the broker, an amount of cash equal to the daily fluctuation in value of
the contract. Such a receipt or payment is known as a "variation margin"
and is recorded by each Fund as an unrealized gain or loss. When the
contract is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed. The Fund is also required to fully
collateralize futures contracts purchased. The Fund only enters into
futures contracts which are traded on exchanges.
Page 41
<PAGE>
WEISS PECK & GREER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
OPTIONS WRITING (TUDOR, GROWTH & INCOME, GROWTH, QUANTITATIVE EQUITY,
INTERNATIONAL AND GOVERNMENT SECURITIES)
- -------------------------------------------
A Fund may write covered options to protect against adverse movements in
the price of securities in the investment portfolio. When a Fund writes an
option, an amount equal to the premium received by the Fund is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from writing options which expire
unexercised are recorded by the Fund on the expiration date as realized
gains from options transactions. The difference between the premium and the
amount paid on effecting a closing purchase transaction, including
brokerage commissions, is also treated as a realized gain, or if the
premium is less than the amount paid for the closing purchase transaction,
as a realized loss. If a call is exercised, the premium is added to the
proceeds from the sale of the underlying securities or currencies in
determining whether the Fund has realized a gain or loss. If a put is
exercised, the premium reduces the cost basis of the securities or
currencies purchased by the Fund. In writing an option, the Fund bears the
market risk of an unfavorable change in the price of the security
underlying the written option. Exercise of an option written by the Fund
could result in the selling or buying of a security or currency at a price
different from the current market value. The Fund only enters into options
which are traded on exchanges except for Tudor and Growth which can enter
into non-exchange options with counterparties as authorized by the Board of
Trustees.
FOREIGN SECURITIES (TUDOR, GROWTH AND INCOME, GROWTH, INTERNATIONAL)
- --------------------------------------------------------------------
Certain risks result from investing in foreign securities in addition to
the usual risks inherent in domestic investments. Such risks include future
political, economic and currency exchange developments including investment
restrictions and changes in foreign laws.
FORWARD CURRENCY CONTRACTS (TUDOR, GROWTH AND INCOME, GROWTH, INTERNATIONAL)
- ----------------------------------------------------------------------------
A Fund may enter into forward contracts. Such contracts may be utilized in
connection with planned purchases or sales of securities or to hedge the
U.S. dollar value of portfolios denominated in foreign currencies.
Fluctuations in the value of the forward contracts are recorded for book
purposes as unrealized gains or losses by the Fund. Risks may arise upon
entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of the foreign currency relative to the U.S. dollar.
Upon entering into such a contract, the Fund is required to segregate
assets with its custodian at least equal to the value of the Fund's assets
committed to fulfilling the forward currency contract.
FOREIGN CURRENCY TRANSACTIONS (TUDOR, GROWTH AND INCOME, GROWTH, INTERNATIONAL)
- -------------------------------------------------------------------------------
The books and records of each Fund are maintained in United States (U.S.)
dollars. Foreign currencies, investments and other assets or liabilities,
denominated in foreign currencies, are translated into U.S. dollars at the
exchange rates prevailing on the close of trading on the primary foreign
market. The Fund does not isolate that portion of the results of operations
resulting 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.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short term securities, sales of foreign currencies, currency
gains or losses realized between the trade and settlement dates on
securities transactions, the difference between the amounts of dividends,
interest, and foreign withholding taxes recorded on the Fund's books, and
the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at
year end, resulting from changes in the exchange rate.
USE OF ESTIMATES
- ----------------
Estimates and assumptions are required to be made regarding assets,
liabilities and changes in net assets resulting from operations when
financial statements are prepared. Changes in the economic environment,
financial markets and any other parameters used in determining these
estimates could cause actual results to differ from these amounts.
Page 42
<PAGE>
WEISS PECK & GREER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
2 - SECURITIES TRANSACTIONS
For the year ended December 31, 1997, sales proceeds, cost of securities
purchased, (other than short term investments and options written), total
commissions and commissions received by Weiss, Peck & Greer ("WPG"), the
Fund's investment adviser or Hill Samuel Investment Management Limited, the
International Fund's sub-adviser, on such transactions were as follows:
PROCEEDS COST OF COMMISSIONS
OF SECURITIES SECURITIES TOTAL RECEIVED BY
SOLD PURCHASED COMMISSIONS WPG OR HSIM
(000's) (000's) (000's) (000's)
------- ------- ------- -------
Tudor $239,125 $181,025 $258 $ 91
Growth and Income 69,050 70,820 126 100
Growth 85,945 51,555 101 40
Quantitative Equity 113,101 80,083 216 211
International 10,648 6,521 59 0
Government
Securities 377,317 381,643 0 0
Municipal Bond 8,054 16,162 0 0
OPTIONS WRITING ACTIVITY
- ------------------------
For the year ended December 31, 1997, the number of covered call options
written, expired and closed and their related realized gain/(loss) were as
follows:
<TABLE>
<CAPTION>
GOVERNMENT
TUDOR GROWTH SECURITIES
----- ------ ----------
($ in thousands) NUMBER NUMBER NUMBER
OF PREMIUMS OF PREMIUMS OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED CONTRACTS RECEIVED
--------- -------- --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
COVERED CALL
OPTIONS WRITTEN
Contracts Outstanding
December 31, 1996 150 $ 39 90 $ 21 0 $ 0
Contracts Written 7,778 6,479 2,308 2,082 16 43
----- ----- ----- ----- -- --
7,928 6,518 2,398 2,103 16 43
----- ----- ----- ----- -- --
CONTRACTS TERMINATED
Expired 1,082 1,291 652 434 8 20
Exercised 82 22 -- -- 8 23
Closed 6,764 5,205 1,746 1,669 0 0
----- ----- ----- ----- - -
TOTAL CONTRACTS TERMINATED 7,928 6,518 2,398 2,103 16 43
----- ----- ----- ----- -- --
Contracts Outstanding at
December 31, 1997 0 $ 0 0 $ 0 0 $ 0
=== ==== ====== ======= ===== ====== ===== ===
COST OF TOTAL CONTRACTS $ 7,091 $2,472 $ 23
------ ------ ------
REALIZED GAIN/(LOSS) ON CONTRACTS (573) (369) 20
------ ------ ------
AGGREGATE VALUE OF COLLATERAL $ 0 $ 0 0
------ ------ ------
</TABLE>
Page 43
<PAGE>
WEISS PECK & GREER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
3 - INVESTMENTS IN RESTRICTED SECURITIES
Certain of the Funds may from time to time purchase restricted
securities.The following are restricted securities and would require
registration under the Securities Act of 1933 before they could be offered
for public sale in the U.S. Each security is valued under a method approved
by the Board of Trustees as reflecting fair value.
<TABLE>
<CAPTION>
Cost Value Per Unit Total Market Percentage of
Per at Acquisition Value Per Unit Value 12/31/97 Net Assets at
Fund Security Unit Date at 12/31/97 (000's) 12/31/97
- ---- -------- ---- ---- ----------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Tudor Advanced Promotion
Technologies $100.00 $73.76 $0.20 $1 0.00%
Tudor PETsMART Inc.
6.750% Due 11/1/04 100.00 100.25 104.56 2,614 1.56%
Tudor Thermoquest Corp. 15.00 14.84 17.22 861 0.51%
Tax Free NCNB Pooled Tax Exempt
Money Trust-Texas 100.00 100.00 100.00 650 0.39%
Market
Growth Thermoquest Corp. 15.00 14.84 17.22 431 0.92%
</TABLE>
4-SECURITIES LENDING (TUDOR, GROWTH, GOVERNMENT SECURITIES)
At December 31, 1997, the Tudor Fund loaned securities valued at
$15,003,836. For collateral the Tudor Fund received a letter of credit in
an amount equal to $15,000,000. On January 2, 1998, the borrowing broker
returned securities valued at $470,524 to the Tudor Fund in order for the
Fund to have collateral at least equal to the current market value of
securities loaned. At December 31, 1997 the Growth Fund loaned securities
valued at $4,217,966. For collateral, the Growth Fund received U.S.
Government securities in the amount of $4,302,332. During the year the
Tudor Fund, Growth Fund and Government Securities Fund earned approximately
$43,643, $13,191 and $15,601 in securities lending fees, net of custodian
expenses, respectively.
5 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
WPG serves as the Funds' investment adviser. The advisory fees of each Fund
are as follows, and are paid monthly except for the International Fund
which is paid quarterly:
Tudor .90% of net assets up to $300 million
.80% of net assets $300 million to $500 million
.75% of net assets in excess of $500 million
Growth and Income .75% of net assets
Growth .75% of net assets
Quantitative Equity .75% of net assets
International .50% while net assets under $15 million
.85% while net assets $15 to $20 million
1.00% while net assets in excess of $20 million
Government Securities .60% of net assets up to $300 million
.55% of net assets $300 million to $500 million
.50% of net assets in excess of $500 million
continued on next page
Page 44
<PAGE>
WEISS PECK & GREER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
continued from previous page
Municipal Bond .00% while net assets under $17 million
.50% while net assets in excess of $17 million
Government Money Market .50% of net assets up to $500 million
& .45% of net assets $500 million to $1 billion
Tax Free Money Market .40% of net assets $1 billion to $1.5 billion
.35% of net assets in excess of $1.5 billion
Pursuant to authority granted under its Investment Advisory Agreement with
the International Fund, WPG has selected Hill Samuel Investment Management
Limited ("HSIM"), formerly Lloyds Investment Management Limited, as
sub-adviser to the International Fund. Pursuant to a sub-advisory
agreement, HSIM has overall responsibility for the management of the
International Fund's assets invested in non-US securities. Lloyds
Investment Management Limited, the parent of HSIM, is a non-managing member
of WPG.
Each Fund has entered into an Administration Agreement with WPG. For the
period January 1, 1997 through April 30, 1997 WPG was entitled to receive
the following fees based upon a percentage of average daily net assets:
Tudor .07%, Growth and Income .09%, Growth .02%, Quantitative Equity .02%,
International .06% while assets exceed $25 million, Government Securities
.03%, Intermediate Municipal Bond .12% while assets exceed $50 million,
Government Money Market .06%, and Tax Free Money Market .03%. As of May 1,
1997, WPG is entitled to receive the following fees based upon a percentage
of average daily net assets: Tudor .05%, Growth & Income .06%, Growth .08%,
Quantitative Equity .05%, Government Securities .05%, Government Money
Market .04% and Tax Free Money Market .04%. The fee for International and
Municipal Bond have remained the same.
6 - DISTRIBUTION PLAN (GOVERNMENT SECURITIES)
The Trust has adopted a plan of Distribution (the "Plan") under Section 12
(b) of the 1940 Act and Rule 12b-1 thereunder. The Fund may pay up to 0.25%
of its average daily net assets under any one agreement but is limited to
an aggregate of 0.05% of its average annual net assets for activities
primarily intended to result in the sale of its shares.
For the year ended December 31, 1997, expenses incurred under the Plan were
$378.
Under the terms, the Plan shall remain in effect from year to year,
provided such continuance is approved annually by a vote of a majority of
those Trustees who are not "interested persons" of the Trust and who have
no direct or indirect financial interest in the operation of the Plan or in
any agreement related to the Plan.
7 - CUSTODIAN FEES
Each Fund has entered into an expense offset agreement with its custodian
wherein it receives credit toward the reduction of custodian fees whenever
there are uninvested cash balances. For the year ended December 31, 1997
the Funds' custodian fees and related offset were as follows:
Custodian Offset
Fee Credit
--- ------
Tudor $81,438 $3,438
Growth and Income 17,154 2,667
Growth 33,307 2,057
Quantitative Equity 30,558 3,058
International 22,027 3,027
continued on next page
Page 45
<PAGE>
WEISS PECK & GREER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
continued from previous page
Government Securities 23,160 1,660
Municipal Bond 4,297 1,528
Government Money Market 28,810 5,310
Tax Free Money Market 22,727 9,727
The Funds could have invested their cash balances elsewhere if they had not
agreed to a reduction in fees under the expense offset agreement with their
custodian.
8 - RECLASSIFICATION OF CAPITAL ACCOUNTS
In accordance with the adoption of Statement of Position 93-2
"Determination, Disclosure and Financial Statement Presentation of Income,
Capital Gain and Return of Capital Distributions by Investment Companies",
reclassifications were made to the Funds' capital accounts to reflect
permanent book/tax differences and income and gains available for
distributions under income tax regulations. Net investment income, net
realized gains and net assets were not affected by this change. At December
31, 1997, the amounts reclassified were as follows:
Undistributed Undistributed Additional
Net Investment Net Realized Paid-in
Income Gains Surplus
(000's) (000's) (000's)
------- ------- -------
Tudor $ 1,235 $(1,292) $ 57
Growth and Income (80) 94 2
Growth 344 6 (351)
Quantitative Equity -- (23) 23
International 24 179 (203)
Government Securities (61) 61 --
9 - FEDERAL INCOME TAX STATUS OF DIVIDENDS (UNAUDITED)
WPG Tax Free and WPG Municipal Bond have determined that all dividends paid
during the year ended December 31, 1997 were paid from investment income
and are exempt from Federal income. None of these dividends are subject to
the Alternative Minimum Tax.
The Funds have distributed long-term capital gains to shareholders during
the fiscal year ended December 31, 1997 in the following amounts:
28% 20%
--- ---
Tudor Fund $10,350,632 $13,021,763
Growth & Income 6,163,006 4,922,450
Growth Fund 765,371 3,930,159
Quantitative Equity 6,798,497 9,978,356
International Fund 149,625 61,528
The percentage of investment company taxable income eligible for the
dividends received deduction and for certain corporate shareholders with
respect to the fiscal year ended December 31, 1997, is 100% for the Growth
and Income Fund and the Quantitative Equity Fund.
Page 46
<PAGE>
WEISS PECK & GREER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
The above figures may differ from those cited elsewhere in the report due
to differences in the calculation of income and capital gains for
Securities and Exchange Commission (financial reporting) purposes and
Internal Revenue Service (tax) purposes.
10 - SUBSEQUENT EVENT (GOVERNMENT FUND)
On January 20, 1998, the WPG Government Securities Fund changed its name
and investment policies. The new name of the Fund is WPG Core Bond Fund.
Prior to this change, the Fund invested at least 65% of its total assets in
debt obligations issued or guaranteed by the U.S. Government with
maturities exceeding one year. The new policy, among other things, permits
the Fund to invest at least 80% of its assets in debt securities of all
types, including U.S. Government Securities and corporate debt securities.
In addition, under normal market conditions, the Fund will maintain an
average dollar weighted duration of between 3 and 7 years and will limit
its investments to investment grade securities.
Page 47
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
(for the years ended December 31 except as indicated in the footnotes)
$ per share
<TABLE>
<CAPTION>
NET TOTAL
REALIZED INCOME
NET AND (LOSS) DIVIDENDS DISTRI-
NET INVEST UNREALIZED FROM FROM BUTIONS
ASSET MENT GAINS OR INVESTMENT NET FROM TOTAL CONTRI-
VALUE AT INCOME (LOSSES) ON OPERA- INVESTMENT CAPITAL DISTRI- BUTIONS TO
OF PERIOD (LOSS) SECURITIES TIONS INCOME GAINS BUTIONS CAPITAL
--------- ------ ---------- ----- ------ ----- ------- -------
TUDOR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $ 23.28 $ 0.06 $ 2.46 $ 2.52 $ 0.00 $ (3.90) $(3.90) $ 0.00
1996 22.95 (0.14) 4.41 4.27 0.00 (3.94) (3.94) 0.00
1995 19.34 (0.10) 8.03 7.93 0.00 (4.32) (4.32) 0.00
1994 23.40 (0.13) (2.14) (2.27) 0.00 (1.79) (1.79) 0.00
1993 24.85 (0.22) 3.51 3.29 0.00 (4.74) (4.74) 0.00
GROWTH AND INCOME FUND
1997 29.32 0.24 10.30 10.54 (0.24) (4.51) (4.75) 0.00
1996 26.02 0.24 6.11 6.35 (0.39) (2.66) (3.05) 0.00
1995 21.36 0.51 6.44 6.95 (0.53) (1.76) (2.29) 0.00
1994 23.34 0.56 (1.83) (1.27) (0.62) (0.09) (0.71) 0.00
1993 23.89 0.56 1.71 2.27 (0.89) (1.93) (2.82) 0.00
GROWTH
1997 118.47 0.54 10.73 11.27 0.00 (16.00) (16.00) 0.00
1996 125.17 (0.76) 22.90 22.14 0.00 (28.84) (28.84) 0.00
1995 94.45 (0.22) 37.70 37.48 0.00 (6.76) (6.76) 0.00
1994 116.62 (0.29) (15.96) (16.25) 0.00 (5.92) (5.92) 0.00
1993 126.68 (0.78) 19.42 18.64 0.00 (28.70) (28.70) 0.00
QUANTITATIVE EQUITY FUND
1997 5.89 0.08 1.42 1.50 (0.08) (1.47) (1.55) 0.00
1996 6.85 0.16 1.13 1.29 (0.15) (2.10) (2.25) 0.00
1995 5.44 0.13 1.70 1.83 (0.12) (0.30) (0.42) 0.00
1994 5.58 0.13 (0.11) 0.02 (0.11) (0.05) (0.16) 0.00
1993 5.00 0.08 0.62 0.70 (0.08) (0.04) (0.12) 0.00
INTERNATIONAL
1997 10.29 0.01 0.29 0.30 (0.01) (0.43) (0.44) 0.00
1996 11.01 (0.07) 0.57 0.50 (0.04) (1.18) (1.22) 0.00
1995 10.93 0.04 1.15 1.19 (0.15) (0.96) (1.11) 0.00
1994 11.72 0.01 (0.75) (0.74) 0.00 (0.05) (0.05) 0.00
1993 8.54 (0.02) 3.20 3.18 0.00 0.00 0.00 0.00
</TABLE>
<TABLE>
<CAPTION>
ratios
NET NET AVERAGE
ASSET ASSETS AT RATIO OF RATIO OF COMMISS-
VALUE AT END OF EXPENSES NET INCOME PORTFOLIO ION
END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER PER
PERIOD RETURN (OOO'S) NET ASSETS NET ASSETS RATE SHARE
------ ------ ------- ---------- ---------- ---- -----
TUDOR
<S> <C> <C> <C> <C> <C> <C> <C>
1997 $ 21.90 11.11% $166,459 1.24 (0.44%) 106.3% $0.0600
1996 23.28 18.82 181,370 1.25 (0.57) 105.4 0.0580
1995 22.95 41.18 165,534 1.30 (0.47) 123.1 N/A
1994 19.34 (9.81) 144,207 1.28 (0.62) 109.1 N/A
1993 23.40 13.38 242,067 1.25 (0.76) 118.2 N/A
GROWTH AND INCOME
1997 35.11 36.27 117,146 1.06 0.88 69.6 0.0620
1996 29.32 24.42 82,937 1.15 1.50 75.8 0.0620
1995 26.02 32.73 67,357 1.22 2.10 79.4 N/A
1994 21.36 (5.47) 61,045 1.23 2.49 71.9 N/A
1993 23.34 9.53 62,714 1.26 2.15 86.4 N/A
GROWTH
1997 113.74 9.67 46,557 1.12 (0.12) 84.3 0.0540
1996 118.47 17.99 62,839 1.08 (0.07) 122.4 0.0640
1995 125.17 39.72 60,453 1.07 (0.21) 119.0 N/A
1994 94.45 (14.03) 87,942 0.95 (0.27) 99.3 N/A
1993 116.62 14.87 169,302 0.98 (0.54) 126.6 N/A
QUANTITATIVE EQUITY FUND
1997 5.84 25.47 96,055 1.03 1.03 77.7 0.0540
1996 5.89 18.51 102,450 0.95 1.52 60.8 0.0340
1995 6.85 33.37 133,201 1.00 2.00 26.1 N/A
1994 5.44 0.34 73,484 1.14 2.36 46.8 N/A
1993 5.58 13.90 46,921 1.32 2.01 20.6 N/A
INTERNATIONAL
1997 10.15 2.89 8,555 1.89 0.02 55.1 0.0270
1996 10.29 4.64 13,161 1.71 0.31 85.2 0.0190
1995 11.01 10.92 14,194 1.74 0.39 55.9 N/A
1994 10.93 (6.32) 17,102 1.95 0.12 69.8 N/A
1993 11.72 37.24 15,996 2.12 (0.13) 75.9 N/A
</TABLE>
Page 48
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
(for the years ended December 31 except as indicated in the footnotes)
<TABLE>
<CAPTION>
$ PER SHARE
NET TOTAL
REALIZED INCOME
NET AND (LOSS) DIVIDENDS DISTRI- NET NET
NET INVEST UNREALIZED FROM FROM BUTIONS ASSET ASSETS
ASSET MENT GAINS OR INVESTMENT NET FROM TOTAL CONTRI- VALUE AT END OF
VALUE AT INCOME (LOSSES) ON OPERA- INVESTMENT CAPITAL DISTRI- BUTIONS TO END OF TOTAL PERIOD
OF PERIOD (LOSS) SECURITIES TIONS INCOME GAINS BUTIONS CAPITAL PERIOD RETURN ($000'S)
--------- ------ ---------- ----- ------ ----- ------- ------- ------- ------ -------
GOVERNMENT SECURITIES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $9.19 $0.51 $0.15 $0.66 $(0.51) $0.00 $(0.51) $0.00 $ 9.34 7.37% $108,443
1996 9.38 0.64 (0.29) 0.35 (0.54) 0.00 (0.54) 0.00 9.19 3.85 120,804
1995 8.83 0.60 0.54 1.14 (0.59) 0.00 (0.59) 0.00 9.38 13.25 171,578
1994 10.37 0.68 (1.56) (0.88) (0.64) (0.02) (0.66) 0.00 8.83 (8.70) 216,364
1993 10.38 0.79 0.14 0.93 (0.79) (0.15) (0.94) 0.00 10.37 8.96 334,904
INTERMEDIATE MUNICIPAL BOND
1997 10.14 0.47 0.31 0.78 (0.47) 0.00 (0.47) 0.00 10.45 7.85 23,508
1996 10.20 0.48 (0.06) 0.42 (0.48) 0.00 (0.48) 0.00 10.14 4.20 15,214
1995 9.51 0.44 0.69 1.13 (0.44) 0.00 (0.44) 0.00 10.20 12.05 12,730
1994 10.15 0.41 (0.64) (0.23) (0.41) 0.00 (0.41) 0.00 9.51 (2.29) 14,005
1993* 10.00 0.19 0.15 0.34 (0.19) 0.00 (0.19) 0.00 10.15 3.48 12,334
GOVERNMENT MONEY MARKET
1997 1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) 0.00 1.00 4.76 207,817
1996 1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04) 0.00 1.00 4.56 152,786
1995 1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) 0.00 1.00 5.16 131,210
1994 1.00 0.04 (0.01) 0.03 (0.04) 0.00 (0.04) 0.01 1.00 3.58 188,197
1993 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) 0.00 1.00 2.80 140,926
TAX FREE MONEY MARKET
1997 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) 0.00 1.00 3.23 130,083
1996 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) 0.00 1.00 3.14 117,423
1995 1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04) 0.00 1.00 3.63 121,754
1994 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) 0.00 1.00 2.61 152,501
1993 1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02) 0.00 1.00 2.32 136,889
</TABLE>
<TABLE>
<CAPTION>
RATIOS
AVERAGE
RATIO OF RATIO OF COMMISS-
EXPENSES NET INCOME PORTFOLIO ION
TO AVERAGE TO AVERAGE TURNOVER PER
NET ASSETS NET ASSETS RATE SHARE
---------- ---------- ---- -----
GOVERNMENT SECURITIES
<S> <C> <C> <C> <C>
1997 0.86%A 5.56% 330.3% N/A
1996 0.81 5.87 333.1 N/A
1995 0.82 6.52 375.0 N/A
1994 0.80 7.18 115.9 N/A
1993 0.81 7.43 97.5 N/A
INTERMEDIATE MUNICIPAL BOND
1997 0.85 4.55 39.8 N/A
1996 0.85 4.72 44.4 N/A
1995 0.85 4.38 51.2 N/A
1994 0.85 4.20 30.9 N/A
1993 0.84 B 3.86 B 17.0 B N/A
GOVERNMENT MONEY MARKET
1997 0.81 4.68 N/A N/A
1996 0.83 4.48 N/A N/A
1995 0.82 5.06 N/A N/A
1994 0.80 3.54 N/A N/A
1993 0.81 2.75 N/A N/A
TAX FREE MONEY MARKET
1997 0.74 3.17 N/A N/A
1996 0.72 3.10 N/A N/A
1995 0.76 3.56 N/A N/A
1994 0.73 2.59 N/A N/A
1993 0.74 2.29 N/A N/A
<FN>
* From July 1, 1993 (commencement of operations) to December 31, 1993.
A Effective January 1, 1998 WPG has voluntarily agreed to limit the total
expenses of the Fund to 0.50% of average daily net assets.
B Annualized
</FN>
</TABLE>
Page 49
<PAGE>
WEISS, PECK & GREER MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
(For the years ended December 31 except as indicated in the footnotes)
The Adviser agreed to reimburse other operating expenses and not to its full fee
for certain periods. Had the Adviser not so agreed, and had the Funds not
received a custody fee earnings credit, the total return would have been lower
and the net investment income/(loss) per share, ratio of expenses to average net
assets and ratio of net investment income to average net assets would have been:
RATIO OF
NET
RATIO OF INVESTMENT
EXPENSES INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS
---------- ----------
GROWTH
1995 1.08% (0.21%)
QUANTITATIVE EQUITY
1993 1.41% 1.92%
INTERNATIONAL
1997 1.92% (0.01%)
1996 1.76% 0.26%
1995 1.76% 0.39%
1994 2.35% (0.28%)
1993 2.89% (0.64%)
INTERMEDIATE MUNICIPAL BOND
1997 1.15% 4.25%
1996 1.01% 4.56%
1995 0.97% 4.25%
1994 1.45% 3.60%
1993* 2.00% A 2.70% A
For the Tudor, Growth and Income, Quantitative Equity, Government Securities,
Municipal Bond, Government Money Market and Tax Free Money Market Funds the
custody fee earnings credit had an effect of less than 0.01% per share on the
above ratios. For the Growth Fund the custody fee earnings credit had an effect
of less than 0.01% on the above ratios for 1996 and 1997.
Notes:
* From July 1, 1993 (commencement of operations) to December 31, 1993
A Annualized
Page 50
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Trustees of:
WPG TUDOR FUND
WPG GROWTH AND INCOME FUND
WPG GROWTH FUND
WPG QUANTITATIVE EQUITY FUND
WEISS, PECK & GREER INTERNATIONAL FUND
WPG GOVERNMENT SECURITIES FUND
WPG INTERMEDIATE MUNICIPAL BOND FUND
WPG GOVERNMENT MONEY MARKET FUND
WPG TAX FREE MONEY MARKET FUND
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments of WPG Tudor Fund, WPG Growth and Income Fund, WPG
Growth Fund, WPG Quantitative Equity Fund, Weiss, Peck & Greer International
Fund, WPG Government Securities Fund, WPG Intermediate Municipal Bond Fund, WPG
Government Money Market Fund and WPG Tax Free Money Market Fund as of December
31, 1997, and the related statements of operations for the year then ended,
statements of changes in net assets for each of the years in the two-year period
then ended, and financial highlights for each of the periods indicated on pages
48 through 50. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1997, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of WPG
Tudor Fund, WPG Growth and Income Fund, WPG Growth Fund, WPG Quantitative Equity
Fund, Weiss, Peck & Greer International Fund, WPG Government Securities Fund,
WPG Intermediate Municipal Bond Fund, WPG Government Money Market Fund and WPG
Tax Free Money Market Fund as of December 31, 1997, the results of their
operations for the year then ended, the changes in their net assets for each of
the years in the two-year period then ended, and their financial highlights for
each of the periods indicated above, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
New York, New York
January 19, 1998
Page 51
<PAGE>
WEISS, PECK & GREER
ONE NEW YORK PLAZA, NEW YORK, NY 10004
INDEPENDENT TRUSTEES AND MEMBERS
OF AUDIT COMMITTEE
Raymond R. Herrmann, Jr. William B. Ross
Lawrence J. Israel Harvey E. Sampson
Graham E. Jones Robert A. Straniere
Paul Meek
OFFICERS
ROGER J. WEISS
Chairman of the Board and Trustee - all funds
President - Weiss, Peck & Greer International Fund
ADAM STARR
President - WPG Tudor Fund, WPG Growth Fund
JAY C. NADEL
Executive Vice President and Secretary - all funds
FRANCIS H. POWERS
Executive Vice President and Treasurer - all funds
JOSEPH J. REARDON
Vice President - all funds
JOSEPH PARASCONDOLA
Assistant Vice President - all funds
A. ROY KNUTSEN
President - WPG Growth and Income Fund
DANIEL S. VANDIVORT
President - WPG Funds Trust
DANIEL CARDELL
Vice President - WPG Quantitative Equity Fund
R. SCOTT RICHTER
Vice President - WPG Intermediate Municipal Bond Fund
JANET A. FIORENZA
Vice President - WPG Tax Free Money Market Fund
S. BLAKE MILLER
Vice President - WPG Intermediate Municipal Bond Fund
INVESTMENT ADVISER
Weiss, Peck & Greer, LLC
One New York Plaza
New York, NY 10004
CUSTODIAN
Boston Safe Deposit and Trust Company
One Exchange Place
Boston, MA 02109
DIVIDEND DISBURSING AND
TRANSFER AGENT
First Data Investor Services Group
4400 Computer Drive
Westboro, MA 01581-5120
LEGAL COUNSEL
Hale and Dorr
60 State Street
Boston, MA 02109
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
345 Park Avenue
New York, NY 10154
This report is submitted for the general information of shareholders and is not
authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus. Nothing herein is to be considered an
offer of sale or solicitation of an offer to buy shares of the Weiss, Peck &
Greer Funds. Such offering is made only by prospectus, which includes details as
to offering and other material information.
