<PAGE>
PRESIDENT'S LETTER
Dear Oberweis Funds Shareholder:
More good news! The first half of 2000 seems to have confirmed a gradual trend
towards smaller, profitable companies. We believe this trend, with numerous
interruptions, is likely to continue for several years. For the first half, the
Micro-Cap Portfolio (OBMCX) gained 7.32%, the Emerging Growth Portfolio (OBEGX)
gained 14.69%, and the Mid-Cap Portfolio (OBMDX) gained 19.02%. During the same
period, the S&P 500 lost 0.42% and the Russell 2000 gained 3.04%. The gains, of
course, occurred in the first quarter with part of the first quarter's gains
being returned in the second quarter (except for Mid-Cap which actually managed
a further 3.21% gain in the second quarter). No one can guarantee that the
extraordinarily rapidly growing companies that your fund invests in will be the
stocks that outperform the market in any particular year, but we believe that a
widely diversified portfolio of these stocks has the potential to outperform the
S&P 500 and Russell 2000 over long periods of time (five to ten years).
In a few years when we look back on the 1990's, we are likely to recognize a
decade when excessive optimism produced a stock market with the highest
valuations in history for large-cap stocks and unprofitable Internet stocks.
Just as the go-go years of the 1960's were followed by the large-cap "nifty-
fifty" years of the early seventies which were followed by amazing years for
small-caps in the late 1970's and early 1980's, so, too, will the "exuberant"
1990's likely be followed by a return to outperformance by small-caps. We
believe that process has begun. Small-cap stocks seem to offer much better
value, partly because they did not fully participate in the consecutive 20% plus
annual gains of the late 1990's recorded by the S&P 500. However, since October
8, 1998, the Russell 2000 (a widely used small-cap stock index) has outperformed
the S&P 500 by approximately 15 percentage points, though not without some wild
swings in between.
A second clear change in market sentiment that has become apparent this year is
that earnings do indeed matter. The high flying, money losing Internet stocks of
last year are frequently down 50-80% from last year's highs. But some Internet
companies are starting to report significant profits. Those profitable companies
that meet our investment Octagon are carefully considered for inclusion in our
portfolios.
Average Annual Total Returns
as of 6/30/00
-------------
One Five Ten Years /
Fund Year Years Since Inception
--------------------------------------------------
OBEGX +56.57% +16.71% +17.14%
OBMCX +28.03% - +14.21%*
OBMDX +107.78% - +37.68%*
While some observers might conclude that those performance numbers would
indicate that the Mid-Cap Portfolio is the best to own, I would suggest owning
all three, especially focusing on the Emerging Growth and Micro-Cap Portfolios
since we believe investor interest has moved from big-cap to mid-cap and is now
starting to move towards small-cap. When we look at the three portfolios, we see
that while all three have revenue and earnings growth rates of approximately
70%+ in the most recent quarter, the weighted average price to earnings ratio on
this year's estimated earnings for Mid-Cap is 38, compared to 25 for Emerging
Growth and only 18 for Micro-Cap. The weighted average market cap for Mid-Cap
was $2.8 billion; for Emerging Growth, $1.3 billion; and for Micro-Cap, $209
million. Since our Portfolios consist of very rapidly growing companies, an
investor might expect the average PE ratio to be considerably higher than the
market as a whole, but that has not been the case recently, further raising our
optimism for the outlook for our Portfolios relative to the market. On the other
hand, the market (as measured by the big-cap S&P 500) is now quite expensive.
Portfolio shares are available through both our custodian bank and our
distributor, Oberweis.net, as well as through many mutual fund "supermarkets"
without any transaction fees (though Mid-Cap and Micro-Cap have a 0.25%
redemption charge which benefits the remaining fund shareholders, not the
distributor). If you have any questions about the Portfolio's investment
policies, please feel free to call me or either of our two other portfolio
managers, Jim Oberweis, Jr. or Martin Yokosawa. We're normally available from
7:30 AM until 6:00 PM Central time and from 9:30 until noon on Saturday at 800-
323-6166 or 630-801-6000 in the Chicago area. Please visit our website at
www.oberweis.net.
Sincerely,
/s/ James D. Oberweis
James D. Oberweis
President
*Since inception returns are from commencement of operations on 1/1/96 for the
Micro-Cap Portfolio, and 9/15/96 for the Mid-Cap Portfolio. Performance data
represents past performance, which is no guarantee of future results. Investment
return and principal value will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost.
1
<PAGE>
OBERWEIS EMERGING GROWTH PORTFOLIO
Portfolio of Investments
June 30, 2000 (value in thousands)
<TABLE>
<CAPTION>
Shares Company (Closing Price) Value
----------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 100.8%
Commercial Services - Staffing - 1.4%
49,400 Hall Kinion & Associates, Inc. @ 33.312 $ 1,646
-----------------
Computer - Local Networks - 0.5%
20,000 Visual Networks, Inc. @ 28.500 570
-----------------
Computer - Manufacturers - 3.5%
*40,000 Digital Lightwave, Inc. @ 100.500 4,020
-----------------
Computer - Memory Devices - 2.0%
20,000 Dataram Corp. @ 28.750 575
*20,000 Silicon Storage Technology @ 88.312 1,766
-----------------
2,341
-----------------
Computer - Optical Recognition - 1.2%
80,000 Robotic Vision Systems, Inc. @ 18.000 1,440
-----------------
Computer Peripherals - 1.7%
*45,000 Cybex Computer Products @ 43.000 1,935
-----------------
Computer Services - 3.1%
10,000 Diamond Tech Partners, Inc. @ 88.000 880
16,000 Photon Dynamics, Inc. @ 74.687 1,195
100,000 Source Information Management
Company @ 15.250 1,525
-----------------
3,600
-----------------
Computer Services - Staffing - 0.5%
10,000 Administaff, Inc. @ 63.500 635
-----------------
Computer Software - Desktop - 1.7%
50,000 Verity, Inc. @ 38.000 1,900
-----------------
Computer Software - Enterprise - 5.0%
*20,000 Actuate Corp. @ 53.375 1,068
*40,000 Intranet Solutions, Inc. @ 38.375 1,535
60,000 Latitude Communications @ 11.187 671
60,000 Magic Software Enterprise @ 10.687 641
30,000 Radiant Systems @ 24.000 720
30,000 TTI Team Telecom @ 36.000 1,080
-----------------
5,715
-----------------
Computer Software - Finance - 0.5%
60,000 Carreker-Antinori, Inc. @ 9.000 540
-----------------
Electrical - Equipment / Components 4.2%
15,000 ACT Manufacturing, Inc. @ 46.437 696
60,000 American Technical Ceramics @ 27.875 1,672
10,000 Nice Systems Ltd. ADR @ 77.187 772
30,000 Nu Horizons Electronics @ 26.625 799
15,000 Three Five Systems, Inc. @ 59.000 885
-----------------
4,824
-----------------
Electrical - Parts Distributors - 1.0%
60,000 Bell Microproducts, Inc. @ 18.375 $ 1,102
-----------------
Electronics - Components /
Semiconductors - 14.2%
60,000 ATMI, Inc. @ 46.500 2,790
15,000 Diodes, Inc. @ 42.875 643
*39,000 Gasonics International Corp. @ 39.437 1,538
30,000 Icos Vision Systems @ 36.500 1,095
100,000 Ikos Systems @ 10.812 1,081
10,000 Merix Corp. @ 47.000 470
40,000 Nanometrics, Inc. @ 41.187 1,647
30,000 Qlogic Corp. @ 66.062 1,982
10,000 Radisys Corp. @ 56.750 568
40,000 Silicon Valley Group, Inc. @ 25.875 1,035
*33,500 Transwitch Corp. @ 77.187 2,586
49,000 V Three Semiconductor, Inc. @ 17.750 870
-----------------
16,305
-----------------
Electronics - Laser Components - 4.2%
187,500 Candela Corp. @ 9.125 1,711
*62,500 Excel Technology, Inc. @ 50.312 3,144
-----------------
4,855
-----------------
Electronics - Scientific Instruments - 0.7%
50,000 Integrated Measurement Systems @ 15.750 788
-----------------
Finance - Consumer / Commercial - 0.5%
**15,000 Elron Electronic @ 36.812 552
-----------------
Food - Miscellaneous 3.1%
40,000 Hain Celestial Group, Inc. @ 36.687 1,467
200,000 Monterey Pasta Co. @ 4.187 838
130,000 Suprema Specialties, Inc. @ 9.375 1,219
-----------------
3,524
-----------------
Household Appliances - 4.8%
150,000 Salton, Inc. @ 36.875 5,531
-----------------
Internet Network Services - 2.5%
46,000 Appnet, Inc. @ 36.000 1,656
30,000 Netopia, Inc. @ 40.250 1,208
-----------------
2,864
-----------------
Internet Software - 1.4%
*30,000 F5 Networks, Inc. @ 54.562 1,637
-----------------
Leisure - Products - 0.9%
10,000 Direct Focus, Inc. @ 49.000 490
20,000 Meade Instruments, Inc. @ 25.125 503
-----------------
993
-----------------
Medical / Dental Services - 4.1%
230,000 Advance Paradigm, Inc. @ 20.500 4,715
-----------------
</TABLE>
See notes to Portfolio of Investments.
2
<PAGE>
OBERWEIS EMERGING GROWTH PORTFOLIO
Portfolio of Investments (cont'd.)
<TABLE>
<CAPTION>
Shares Company (Closing Price) Value
-------------------------------------------------------------------------------
<S> <C> <C>
Medical - Ethical Drugs - 15.5%
*130,000 Andrx Corp. @ 63.921 $ 8,310
*168,150 King Pharmaceuticals, Inc. @ 43.875 7,377
40,000 MGI Pharma, Inc. @ 28.765 1,151
120,000 Sicor, Inc. @ 8.000 960
---------
17,798
---------
Medical - Nursing Homes /
Outpatient Care - 0.7%
20,000 Novamed Eyecare, Inc. @ 8.812 176
24,000 Rehabcare Group @ 27.250 654
---------
830
---------
Medical - Products - 6.8%
80,000 North American Scientific @ 17.937 1,435
*100,000 Polymedica Corp. @ 43.250 4,325
200,000 Zevex International, Inc. @ 5.312 1,063
20,000 Zoll Medical Corp. @ 49.000 980
---------
7,803
---------
Oil & Gas - U.S. Exploration &
Production - 2.8%
40,000 Prima Energy Corp. @ 53.500 2,140
**50,000 Vintage Petroleum @ 22.562 1,128
---------
3,268
---------
Pollution Control - 1.0%
50,000 Stericycle, Inc. @ 24.000 1,200
---------
Restaurants - 1.1%
40,000 P.F. Chang's China Bistro @ 31.937 1,278
---------
Retail - Apparel - 4.4%
60,000 American Eagle Outfitters @ 14.000 840
100,000 Chico's Fas, Inc. @ 20.000 2,000
46,000 Children's Place @ 20.500 943
40,000 Hot Topic, Inc. @ 32.000 1,280
---------
5,063
---------
Retail - Mail Order & Direct - 1.2%
30,000 One-800 Contacts @ 47.000 1,410
---------
Retail - Wholesale Computer - 1.7%
50,000 Scansource, Inc. @ 38.875 1,944
---------
Telecommunications - Equipment - 2.9%
100,000 Audiovox Corp. @ 22.062 2,206
12,000 Carrier Access Corp. @ 52.875 634
15,000 Xet Corp. @ 31.187 468
---------
3,308
---------
Total Common Stocks
(Cost: $73,763,000) $ 115,934
---------
<CAPTION>
Face Amount Value
-------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER - 1.5%
$900,000 Heller Financial, Inc.
6.87%, due 07-05-00 $ 900
900,000 Sears Roebuck Acceptance
6.65%, due 07-03-00 900
---------
Total Commercial Paper
(Cost: $1,800,000) 1,800
---------
Total Investments - 102.3%
(Cost : $75,563,000) 117,734
---------
</TABLE>
<TABLE>
<CAPTION>
Contracts Value
-------------------------------------------------------------------------------
<S> <C>
COVERED CALL OPTIONS - (0.2%)
200 Actuate Corp., August $80 $ (11)
100 Andrx Corp., July $70 (12)
150 Cybex Computer Products, August $55 (23)
200 Digital Lightwave, Inc., July $140 (14)
50 Excel Technology, Inc., July $45 (32)
30 F5 Networks, Inc., July $75 (1)
170 F5 Networks, Inc., October $120 (21)
40 Gasonics International Corp., July $50 (2)
20 Intranet Solutions, Inc., August $60 -
181.5 King Pharmaceuticals, Inc., July $46.66 (37)
100 King Pharmaceuticals, Inc., July $50 (14)
100 Polymedica Corp., July $50 (15)
400 Polymedica Corp., September $65 (60)
100 Silicon Storage Technology, July $130 (10)
335 Transwitch Corp., August $140 (2)
200 Visual Networks, Inc., July $90 -
---------
Total Covered Call Options
(Premiums received : $363,000) (254)
Other Liabilities less Assets - (2.1%) (2,437)
---------
NET ASSETS - 100% $ 115,043
=========
</TABLE>
Notes to Portfolio of Investments
------------------------------------------------------------------------------
* All or a portion of these stocks were held in escrow at June 30, 2000 to
cover call options written. The aggregate market value was $39,811,000.
** Income producing security during the period ended June 30, 2000.
Based on the cost of investments of $75,563,000 for federal income tax purposes
at June 30, 2000, the aggregate gross unrealized appreciation was $48,697,000,
the aggregate gross unrealized depreciation was $4,617,000 and the net
unrealized appreciation of investments was $44,080,000.
3
<PAGE>
OBERWEIS MICRO-CAP PORTFOLIO
Portfolio of Investments
June 30, 2000 (value in thousands)
<TABLE>
<CAPTION>
Shares Company (Closing Price) Value
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 100.3%
Chemicals - Plastics - 0.8%
10,000 PW Eagle, Inc. @ 18.125 $ 181
---------
Commercial Services - Misc. - 5.4%
**30,000 Avert, Inc. @ 22.875 686
10,000 FTI Consulting Group, Inc. @ 10.500 105
30,000 RMH Teleservices, Inc. @ 14.750 443
---------
1,234
---------
Commercial Services - Schools - 2.8%
12,500 New Horizons Worldwide, Inc. @ 23.234 290
9,400 Prosoft Training.com @ 16.812 158
10,000 Quest Education Corp. @ 18.062 181
---------
629
---------
Commercial Services - Security - 2.2%
50,000 Tidel Technologies, Inc. @ 9.937 497
---------
Computer - Integrated Systems - 0.5%
25,000 Aspeon, Inc. @ 4.875 122
---------
Computer Peripherals - 2.6%
6,000 Loronix Information System @ 35.937 216
20,000 Manatron, Inc. @ 8.250 165
46,000 Videolabs, Inc. @ 4.750 218
---------
599
---------
Computer Services - 0.4%
12,000 Ontrack Data International, Inc. @ 7.812 94
---------
Computer Software - Desktop - 3.4%
20,400 Verity, Inc. @ 38.000 775
---------
Computer Software - Finance - 0.4%
9,000 Epiq Systems, Inc. @ 10.875 98
Computer Software - Enterprise - 6.5%
10,000 Aremissoft Corp. @ 31.125 311
*10,000 Intranet Solutions, Inc. @ 38.375 384
51,700 Netsmart Technologies, Inc. @ 5.187 268
30,000 Talx Corp. @ 17.125 514
---------
1,477
---------
Consumer Products - Misc. - 0.4%
6,000 Koala Corp. @ 14.125 85
---------
Electrical - Equipment / Components - 8.7%
30,000 American Technical Ceramics @ 27.875 836
40,000 Bell Microproducts, Inc. @ 18.375 735
10,000 Nu Horizons Electronics @ 26.625 266
12,000 Rebtron Electronics @ 11.687 141
---------
1,978
---------
Electronics - Measuring Instruments - 1.7%
10,000 Measurement Specialties, Inc. @ 38.375 $ 384
---------
Electronics - Semiconductors / Components - 14.2%
60,000 Candela Corp. @ 9.125 547
25,000 Dense-Pac Microsystems, Inc. @ 10.875 272
40,000 Genesis Microchip, Inc. @ 17.875 715
70,000 Ikos Systems @ 10.812 757
20,000 Intest Corp. @ 14.875 298
10,000 Micro Component Technology @ 8.562 86
10,000 PSI Technologies Holdings - Class A
@ 20.750 207
20,000 V Three Semiconductor @ 17.750 355
---------
3,237
---------
Financial Services - 0.4%
20,000 Crown Group, Inc. @ 5.093 102
---------
Food - Misc. - 4.3%
97,000 Monterey Pasta Company @ 4.187 406
60,000 Suprema Specialties, Inc. @ 9.375 563
---------
969
---------
Household / Office Furniture - 1.1%
40,000 Business Resource Group @ 6.375 255
---------
Leisure - Toys / Games - 1.3%
20,000 JAKKS Pacific, Inc. @ 14.750 295
---------
Machinery - 1.1%
17,000 Nur Macroprinters, Ltd. @ 14.500 246
---------
Medical / Dental Supplies - 1.2%
20,000 Interpore International @ 9.687 194
32,900 Pro-Dex, Inc. @ 2.437 80
---------
274
---------
Medical / Ethical Drugs - 1.6%
18,000 Cima Labs, Inc. @ 20.250 364
---------
Medical - Health Maintenance - 1.3%
50,000 Lifemark Corp. @ 6.000 300
---------
Medical Instruments - 2.5%
40,000 Abaxis, Inc. @ 6.687 268
10,000 Exactech, Inc. @ 15.937 159
50,000 Rehabilicare, Inc. @ 2.812 141
---------
568
---------
Medical - Products - 7.4%
30,000 North American Scientific @ 17.937 538
*12,000 Polymedica Corp. @ 43.250 519
120,000 Zevex International, Inc. @ 5.312 638
---------
1,695
---------
Oil - Domestic Integrated - 2.0%
80,000 Meridian Resource Corp. @ 5.687 455
---------
</TABLE>
4
<PAGE>
OBERWEIS MICRO-CAP PORTFOLIO
Portfolio of Investments (cont'd.)
<TABLE>
<CAPTION>
Shares Company (Closing Price) Value
-----------------------------------------------------------------
<S> <C> <C>
Oil & Gas - U.S. Exploration
& Production - 4.3%
20,000 Beta Oil & Gas, Inc. @ 10.875 $ 218
15,700 Carrizo Oil & Gas, Inc. @ 6.000 94
30,700 Key Production Company, Inc. @ 17.500 537
20,000 Magnum Hunter Resources @ 6.625 132
--------
981
--------
Pollution Control - Equipment - 0.4%
15,000 Strategic Diagnostics @ 5.562 83
--------
Restaurants - 0.9%
25,000 Rubio's Restaurants, Inc. @ 8.250 206
--------
Retail - Apparel - 2.8%
32,000 Chico's Fas, Inc. @ 20.000 640
--------
Shoes & Related Apparel - 2.0%
35,000 Steven Madden Ltd. @ 6.562 230
15,000 Vans, Inc. @ 14.625 219
--------
449
--------
Telecommunications - Equipment - 10.3%
15,000 Dset Corp. @ 30.375 456
100,000 Gentner Communications @ 14.000 1,400
14,000 Nhancement Technologies, Inc. @ 13.312 186
20,000 Spectralink Corp. @ 14.625 293
--------
2,335
--------
Telecommunications - Services - 2.1%
10,000 Act Teleconferencing, Inc. @ 5.812 58
17,000 Arguss Holdings, Inc. @ 18.875 321
10,000 Multi-Link Telecommunications @ 10.375 104
--------
483
--------
Textile - Manufacturing - 2.7%
56,500 Cutter & Buck, Inc. @ 7.937 448
25,000 Frenchtex @ 0.010 0
10,000 Telfron, Ltd. @ 17.125 171
--------
619
--------
Transportation - Rail - 0.6%
20,000 RailAmerica, Inc. @ 6.375 127
--------
Total Common Stocks
(Cost: $17,422,000) $ 22,836
--------
Total Investments - 100.3%
(Cost : $17,422,000) 22,836
--------
<CAPTION>
Contracts Value
-----------------------------------------------------------------
<C> <C> <C>
COVERED CALL OPTIONS - (0.2%)
100 Intranet Solutions, Inc., July $40 $ (13)
120 Polymedica Corp., July $45 (36)
--------
Total Covered Call Options
(Premiums received : $27,000) (49)
Other Liabilities less Assets - (0.1%) (26)
--------
NET ASSETS - 100% $22,761
========
</TABLE>
Notes to Portfolio of Investments
--------------------------------------------------------------------------------
* All or a portion of these stocks were held in escrow at June 30, 2000 to
cover call options written. The aggregate market value was $903,000.
** Income producing security during the period ended June 30, 2000.
Based on the cost of investments of $17,422,000 federal income tax purposes
at June 30, 2000, the aggregate gross unrealized appreciation was $6,820,000,
the aggregate gross unrealized depreciation was $1,427,000 and the net
unrealized appreciation of investments was $5,393,000.
5
<PAGE>
OBERWEIS MID-CAP PORTFOLIO
Portfolio of Investments
June 30, 2000 (value in thousands)
<TABLE>
<CAPTION>
Shares Company (Closing Price) Value
-------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 100.4%
Banks - West / Southwest - 1.6%
6,000 Silicon Valley Bancshare @ 42.625 $ 256
--------
Commercial Services - Misc. - 1.1%
*2,000 Diamond Tech Partners, Inc. @ 88.000 176
--------
Commercial Services - Security - 1.2%
3,000 Macrovision Corp. @ 63.921 192
--------
Computer Graphics - 1.6%
4,000 Nvidia Corp. @ 63.562 254
--------
Computer Local Networks - 2.3%
2,000 Extreme Networks, Inc. @ 105.500 211
6,000 Visual Networks, Inc. @ 28.500 171
--------
382
--------
Computer Manufacturers - 4.9%
*8,000 Digital Lightwave, Inc. @ 100.500 804
--------
Computer Memory Devices - 3.1%
10,000 Advanced Digital Information @ 15.937 159
*4,000 Silicon Storage Technology @ 88.312 353
--------
512
--------
Computer Services - 0.9%
2,000 Amdocs, Inc. @ 76.750 154
--------
Computer Software - Desktop - 4.7%
2,000 Macromedia, Inc. @ 96.687 193
15,000 Verity, Inc. @ 38.000 570
--------
763
--------
Computer Software - Enterprise - 4.8%
4,000 Mercury Interactive Corp. @ 96.750 387
7,000 Remedy Corp. @ 55.750 390
--------
777
--------
Computer Software - Security - 2.6%
*2,000 Check Point Software Technologies, Ltd. @ 211.750 424
--------
Electronics - Components /
Semiconductors - 7.8%
3,000 Anadigics, Inc. @ 34.062 102
10,000 ATMI, Inc. @ 46.500 465
4,000 Brooks Automation, Inc. @ 63.937 256
2,000 Credence Systems Corp. @ 55.187 110
**4,000 Helix Technology Corp. @ 39.000 156
2,000 Orbotech, Ltd. @ 92.875 186
--------
1,275
--------
Electrical - Equipment /
Components - 15.6%
3,000 Commscope, Inc. @ 41.000 $ 123
12,000 Kemet Corp. @ 25.062 301
6,000 Power One, Inc. @ 113.937 684
*18,000 Powerwave Technologies, Inc. @ 44.000 792
3,000 Sawtek, Inc. @ 57.562 173
7,000 Siliconix, Inc. @ 67.500 472
--------
2,545
--------
Electrical - Military Systems - 2.7%
10,000 Titan Corp. @ 44.750 447
--------
Household - Appliances - 2.3%
10,000 Salton, Inc. @ 36.875 369
--------
Medical - Dental Services - 2.2%
5,000 Quest Diagostics, Inc. @ 71.562 358
--------
Medical - Ethical Drugs - 9.8%
5,000 Andrx Corp. @ 63.921 320
4,000 Biovail Corp. International @ 55.437 222
*20,250 King Pharmaceuticals, Inc. @ 43.875 888
20,000 Sicor, Inc. @ 8.000 160
--------
1,590
--------
Medical - Products - 3.9%
12,000 Cytyc Corp. @ 53.375 640
--------
Oil & Gas Exploration - 5.2%
15,000 Barrett Resources Corp. @ 30.437 457
10,000 Triton Energy @ 39.312 393
--------
850
--------
Retail - 2.8%
10,000 Michael's Stores @ 45.812 458
--------
Retail / Wholesale - Computer - 2.7%
7,500 Insight Enterprises, Inc. @ 59.312 445
--------
Telecommunications -
Equipment - 16.6%
3,000 Adtran, Inc. @ 59.875 180
16,000 Audiovox Corp. @ 22.062 353
8,000 Carrier Access Corp. @ 52.875 423
4,000 Ditech Communications @ 94.562 378
6,000 Polycom, Inc. @ 94.093 564
5,000 Quanta Services, Inc. @ 55.000 275
4,000 Tollgrade Communications @ 132.500 530
--------
2,703
--------
Total Common Stocks
(Cost: $11,511,000) $ 16,374
--------
Total Investments - 100.4%
(Cost : $11,511,000) 16,374
--------
</TABLE>
See notes to Portfolio of Investments.
6
<PAGE>
OBERWEIS MID-CAP PORTFOLIO
Portfolio of Investments (cont'd.)
<TABLE>
<CAPTION>
Contracts Value
-----------------------------------------------------------------------
<S> <C>
COVERED CALL OPTIONS - (0.4%)
20 Check Point Software Tech. Ltd., July $300 $ (1)
20 Diamond Tech Partners, July $110 (1)
20 Digital Lightwave, Inc., July $140 (1)
75 King Pharmaceuticals, Inc., July $46.66 (15)
100 Powerwave Technologies, Inc., July $65 (4)
80 Powerwave Technologies, Inc., July $80 -
40 Silicon Storage Technology, July $130 (4)
40 Tollgrade Communications, July $135 (45)
-------
Total Covered Call Options
(Premiums received: $97,000) (71)
Other Assets less Liabilities - 0.0% 8
-------
NET ASSETS - 100% $16,311
=======
</TABLE>
Notes to Portfolio of Investments
--------------------------------------------------------------------------------
* All or a portion of these stocks were held in escrow at June 30, 2000 to
cover call options written. The aggregate market value was $3,967,000.
** Income producing security during the period ended June 30, 2000.
Based on the cost of investments of $11,511,000 for federal income tax
purposes at June 30, 2000, the aggregate gross unrealized appreciation was
$5,633,000, the aggregate gross unrealized depreciation was $738,000 and the
net unrealized appreciation of investments was $4,895,000.
7
<PAGE>
THE OBERWEIS FUNDS
Statement of Assets and Liabilities
June 30, 2000 (in thousands, except pricing of shares)
<TABLE>
<CAPTION>
Emerging Growth Micro-Cap Mid-Cap
Portfolio Portfolio Portfolio
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investment securities at market value $ 117,734 $ 22,836 $ 16,374
(Cost: $75,563, $17,422 and $11,511, respectively)
Cash 14 81 2
Receivable from fund shares sold 48 98 59
Receivable from securities sold 26 45 7
Dividends and interest receivable 2 - -
Deferred organizational expense - 6 14
Prepaid expenses 22 11 6
----------- --------- --------
Total Assets 117,846 23,077 16,462
----------- --------- --------
Liabilities:
Options written at value
(Premiums received: $363, $27 and $97, respectively) 254 49 71
Payable for fund shares redeemed 1,047 104 51
Payable for securities purchased 1,265 79 -
Payable to advisor 74 19 10
Payable to distributor 22 4 3
Accrued expenses 141 61 16
----------- --------- --------
Total Liabilities 2,803 316 151
----------- --------- --------
Net Assets $ 115,043 $ 22,761 $ 16,311
=========== ========= ========
Analysis of net assets:
Aggregate paid in capital $ 38,432 $ 15,018 $ 6,102
Accumulated net realized gain on investments 32,531 2,351 5,319
Net unrealized appreciation of investments 44,080 5,392 4,890
----------- --------- --------
Net Assets $ 115,043 $ 22,761 $ 16,311
=========== ========= ========
The Pricing of Shares:
Net asset value and offering price per share
Emerging Growth Portfolio:
($115,043,336 divided by 2,774,901 shares outstanding) $ 41.46
===========
Micro-Cap Portfolio:
($22,760,809 divided by 1,251,706 shares outstanding) $ 18.18
=========
Mid-Cap Portfolio:
($16,310,640 divided by 564,275 shares outstanding) $ 28.91
========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
THE OBERWEIS FUNDS
Statement of Operations
Six Months Ended June 30, 2000 (in thousands)
<TABLE>
<CAPTION>
Emerging Growth Micro-Cap Mid-Cap
Portfolio Portfolio Portfolio
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest $ 59 $ 2 $ 1
Dividends 9 6 1
-------- --------- --------
Total Investment Income 68 8 2
-------- --------- --------
Expenses:
Investment advisory fees 242 72 31
Management fees 229 48 31
Distribution fees 143 30 20
Transfer agent fees and expenses 80 29 20
Custodian fees and expenses 68 39 26
Professional fees 38 11 3
Shareholder reports 16 7 1
Federal and state registration fees 13 10 7
Insurance 5 1 1
Organizational expenses - 6 6
Trustees' fees 4 1 1
Miscellaneous 1 - -
-------- --------- --------
Total Expenses 839 254 147
-------- --------- --------
Net Investment Loss Before Expense Reimbursement (771) (246) (145)
Expense reimbursement and earnings credits 23 17 6
-------- --------- --------
Net Investment Loss (748) (229) (139)
-------- --------- --------
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 22,006 5,033 4,837
Net realized gain (loss) from covered call options written 505 251 (814)
-------- --------- --------
Total net realized gain 22,511 5,284 4,023
Decrease in net unrealized appreciation of investments (6,041) (3,788) (1,122)
-------- --------- --------
Net realized and unrealized gain on investments 16,470 1,496 2,901
-------- --------- --------
Net increase in net assets resulting from operations $ 15,722 $ 1,267 $ 2,762
======== ========= ========
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
THE OBERWEIS FUNDS
Statements of Changes in Net Assets (in thousands)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
Emerging Growth Portfolio
-----------------------------------
Six Months Ended Year Ended
June 30, 2000 December 31, 1999
-----------------------------------
<S> <C> <C>
From Operations:
Net investment loss $ (748) $ (1,313)
Net realized gain on investments 22,511 23,323
Increase (decrease) in net unrealized appreciation of investments (6,041) 15,640
--------- ----------
Net increase in net assets resulting from operations 15,722 37,650
--------- ----------
From Capital Share Transactions:
Net proceeds from sale of shares 26,280 17,537
Redemption of shares (32,087) (43,174)
--------- ----------
Net decrease from capital share transactions (5,807) (25,637)
--------- ----------
Total increase in net assets 9,915 12,013
Net Assets:
Beginning of period 105,128 93,115
--------- ----------
End of period $ 115,043 $ 105,128
========= ==========
Transactions in Shares:
Shares sold 642 699
Less shares redeemed (775) (1,737)
--------- ----------
Net decrease from capital share transactions (133) (1,038)
========= ==========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
THE OBERWEIS FUNDS
Statements of Changes in Net Assets (in thousands)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
Micro-Cap Portfolio
-----------------------------------------
Six Months Ended Year Ended
June 30, 2000 December 31, 1999
------------------------------------------
<S> <C> <C>
From Operations:
Net investment loss $ (229) $ (396)
Net realized gain on investments 5,284 4,231
Decrease in net unrealized appreciation of investments (3,788) (807)
------------ -------------
Net increase in net assets resulting from operations 1,267 3,028
------------ -------------
From Capital Share Transactions:
Net proceeds from sale of shares 3,905 6,833
Redemption of shares (3,712) (16,850)
------------ -------------
Net increase (decrease) from capital share transactions 193 (10,017)
------------ -------------
Total increase (decrease) in net assets 1,460 (6,989)
Net Assets:
Beginning of period 21,301 28,290
------------ -------------
End of period $ 22,761 $ 21,301
============ =============
Transactions in Shares:
Shares sold 189 490
Less shares redeemed (195) (1,227)
------------ -------------
Net decrease from capital share transactions (6) (737)
============ =============
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE OBERWEIS FUNDS
Statements of Changes in Net Assets (in thousands)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Micro-Cap Portfolio
-----------------------------------------
Six Months Ended Year Ended
June 30, 2000 December 31, 1999
------------------------------------------
<S> <C> <C>
From Operations:
Net investment loss $ (139) $ (157)
Net realized gain on investments 4,022 3,246
Increase (decrease) in net unrealized appreciation of investments (1,121) 3,876
------------ -------------
Net increase in net assets resulting from operations 2,762 6,965
------------ -------------
From Distributions:
Distributions from net realized gains on investments - (1,280)
------------ -------------
From Capital Share Transactions:
Net proceeds from sale of shares 4,753 11,702
Shares issued in reinvestment of distribution - 1,230
Redemption of shares (5,289) (11,448)
------------ -------------
Net increase (decrease) from capital share transactions (536) 1,484
------------ -------------
Total increase in net assets 2,226 7,169
Net Assets:
Beginning of period 14,085 6,916
------------ -------------
End of period $ 16,311 $ 14,085
============ =============
Transactions in Shares:
Shares sold 173 663
Shares issued in reinvestment of dividends - 62
Less shares redeemed (189) (683)
------------ -------------
Net increase (decrease) from capital share transactions (16) 42
============ =============
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE OBERWEIS FUNDS
Notes to Financial Statements
June 30, 2000
1. Significant Accounting Policies
Description of business. The Oberweis Funds (the "Trust") is registered under
the Investment Company Act of 1940 as a diversified open-end management
investment company. The Trust is authorized to operate numerous portfolios under
various trading strategies. The Trust consists of three portfolios: the Oberweis
Emerging Growth Portfolio, the Oberweis Micro-Cap Portfolio, and the Oberweis
Mid-Cap Portfolio (collectively, the Funds).
Investment valuation. Investments are stated at value. Each listed and unlisted
security for which last sale information is regularly reported is valued at the
last reported sales price on that day. If there has been no sale on such day,
then such security is valued at the current day's bid price. Any unlisted
security for which last sale information is not regularly reported and any
listed debt security which has an inactive listed market for which over-the-
counter market quotations are readily available are valued at the closing bid
price determined on the basis of reasonable inquiry. Options are valued at the
last reported bid price. Restricted securities and any other securities or other
assets for which market quotations are not readily available are valued by
appraisal at their fair value as determined in good faith under procedures
established by and under the general supervision and responsibility of the Board
of Trustees. Short-term debt obligations, commercial paper and repurchase
agreements are valued on the basis of quoted yields for securities of comparable
maturity, quality and type or on the basis of amortized costs.
Fund share valuation. Fund shares are sold and redeemed on a continuous basis at
net asset value. On each day the New York Stock Exchange is open for trading,
the net asset value per share is determined as of the later of the close of the
New York Stock Exchange or the Chicago Board Options Exchange by dividing the
total value of each Fund's investments and other assets, less liabilities, by
the number of each Fund's shares outstanding.
Investment transactions and investment income. Investment transactions are
accounted for on the trade date (date the order to buy or sell is executed).
Dividend income is recorded on the ex-dividend date, and interest income is
recorded on the accrual basis and includes amortization of premium and discount.
Realized gains and losses from investment transactions are reported on an
identified cost basis. Gains and losses on premiums from expired options are
recognized on the date of expiration.
Repurchase agreements. Repurchase agreements are fully collateralized by U.S.
Treasury and Government agency securities. All collateral is held through the
Funds' custodian bank and is monitored daily by each Fund so that its market
value exceeds the carrying value of the repurchase agreement.
Federal income taxes and dividends to shareholders. The Funds have complied with
the special provisions of the Internal Revenue Code available to investment
companies and therefore no federal income tax provision is required. Dividends
payable to its shareholders are recorded by each Fund on the ex-dividend date.
Dividends are determined in accordance with income tax principles which may
treat certain transactions differently from generally accepted accounting
principles. The Oberweis Mid-Cap Portfolio paid a dividend consisting of net
long term realized gains from the sale of securities of $900,000 and net short
term realized gains from the sale of securities of $380,000 in 1999 to
shareholders of record on November 11, 1999. The Micro-Cap Portfolio has a
capital loss carry forward of $2,704,000, which if not used to offset future net
realized capital gains will expire in 2006.
Organizational costs. Organizational costs of the Micro-Cap Portfolio and Mid-
Cap Portfolio have been capitalized and are being amortized on a daily basis
using the straight line method over five years. Use of estimates. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results may differ from those estimates.
2. Transactions with affiliates
The Funds have written agreements with Oberweis Asset Management, Inc. ("OAM")
as the Funds' investment adviser and manager, and Oberweis.net, Inc.
("Oberweis.net"), an affiliate of OAM, is the Funds' principal distributor.
Investment advisory agreement. For investment advisory services, the Emerging
Growth Portfolio paid monthly investment advisory fees at an annual rate equal
to .45% of the first $50,000,000 of average daily net assets and .40% of average
daily net assets in
13
<PAGE>
excess of $50,000,000. The Micro-Cap Portfolio paid monthly investment advisory
fees at an annual rate equal to .60% of average daily net assets. The Mid-Cap
Portfolio paid monthly investment advisory fees at an annual rate equal to .40%
of average daily net assets. For the period ended June 30, 2000, the Emerging
Growth Portfolio, Micro-Cap Portfolio, and Mid-Cap Portfolio incurred investment
advisory fees totaling $242,000, $72,000, and $31,000, respectively.
Management agreement. For management services and facilities furnished, the
Emerging Growth Portfolio, Micro-Cap Portfolio, and Mid-Cap Portfolio each paid
a monthly fee at an annual rate equal to .40% of average daily net assets. For
the period ended June 30, 2000, the Emerging Growth Portfolio, Micro-Cap
Portfolio, and Mid-Cap Portfolio incurred management fees totaling $229,000,
$48,000 and $31,000, respectively.
Expense reimbursement. OAM is obligated to reduce its management fees or
reimburse the Funds to the extent that total ordinary operating expenses, as
defined, exceed in any one year the following amounts expressed as a percentage
of each Fund's average daily net assets: 2% of the first $25,000,000; plus 1.8%
of the next $25,000,000; plus 1.6% of average daily net assets in excess of
$50,000,000. OAM reimbursed the Micro-Cap Portfolio and Mid-Cap Portfolio $7,000
and $1,000, respectively, for the period ended June 30, 2000.
Officers and trustees. Certain officers or trustees of the Funds are also
officers or directors of OAM and Oberweis.net. During the period ended June 30,
2000, the Funds made no direct payments to its officers and paid $6,000 to its
unaffiliated trustees.
Distribution and shareholder service expense. The Funds have a distribution and
shareholder services agreement with Oberweis.net. For services under the
distribution and shareholder servicing agreement, the Funds pay Oberweis.net a
fee at the annual rate of .25% of the average daily net assets and reimbursement
for certain out-of-pocket expenses. For the period ended June 30, 2000, the
Emerging Growth Portfolio, Micro-Cap Portfolio, and Mid-Cap Portfolio incurred
distribution fees totaling $143,000, $30,000 and $20,000, respectively.
Commissions. The Funds pay Oberweis.net for executing some of each Fund's agency
security transactions at competitive rates, typically $.03 per share. For the
period ended June 30, 2000, the Emerging Growth Portfolio, Micro-Cap Portfolio,
and Mid-Cap Portfolio paid commissions of $8,000, $1,000 and $2,000,
respectively to Oberweis.net.
3. Investment transactions The cost of securities purchased and proceeds from
securities sold during the period ended June 30, 2000, other than options
written and money market investments, aggregated $48,386,000 and $22,723,000,
respectively, for the Emerging Growth Portfolio, $12,078,000 and $11,290,000,
respectively, for the Micro-Cap Portfolio, and $8,609,000 and $9,565,000,
respectively, for the Mid-Cap Portfolio.
Transactions in options written for the period ended June 30, 2000 were as
follows:
<TABLE>
<CAPTION>
Emerging Growth Micro-Cap Mid-Cap
Portfolio Portfolio Portfolio
---------------------- ---------------------- ----------------------
Number Number Number
of Premiums of Premiums of Premiums
Contracts Received Contracts Received Contracts Received
----------------------- ---------------------- ----------------------
<S> <C> <C> <C> <C> <C> <C>
Options outstanding at beginning of period 3,050 $ 873,000 600 $ 53,000 310 $ 162,000
Options written 12,729 3,548,000 2,434 361,000 2,090 755,000
Options expired (8,976) (2,306,000) (2,138) (282,000) (1,365) (361,000)
Options closed (1,987.5) (904,000) (400) (39,000) (515) (368,000)
Options assigned (2,439) (848,000) (276) (66,000) (125) (91,000)
----------------------- ---------------------- ----------------------
Options outstanding at end of period 2,376.5 $ 363,000 220 $ 27,000 395 $ 97,000
</TABLE>
The premiums received provide a partial hedge (protection) against declining
prices and enables each Fund to generate a higher return during periods when OAM
does not expect the underlying security to make any major price moves in the
near future but still deems the underlying security to be, over the long term,
an attractive investment for each Fund.
14
<PAGE>
4. Redemption fee
A .25% redemption fee is charged on redemptions from the Micro-Cap and Mid-Cap
Portfolios. The redemption fee is retained by the Funds and is intended to
reimburse the Funds for the expense they incur in connection with shareholder
redemptions. Redemption fees received by the Micro-Cap and Mid-Cap Portfolios
were $9,000 and $13,000, respectively, for the period ended June 30, 2000, and
were recorded as a reduction of shares redeemed in the statements of changes in
net assets.
5. Earnings credits and interest charges
The Trust, as part of the agreement with the Custodian, receives credits against
its custodian fees on its uninvested cash balances and is allowed to borrow for
temporary purposes. Borrowings are not to exceed 5% of the value of each Funds
total assets at the time of any such borrowing. Interest on amounts borrowed is
calculated at the prime rate and is payable monthly. During the period ended
June 30, 2000, the Emerging Growth Portfolio, Micro-Cap Portfolio and the Mid-
Cap Portfolio received credits of $23,000, $10,000 and $5,000, respectively.
During the period ended June 30, 2000, the Emerging Growth Portfolio, Micro-Cap
Portfolio and the Mid-Cap Portfolio incurred interest charges of $6,000, $1,000
and $1,000, respectively, which is included in custodian fees and expenses in
the statement of operations.
15
<PAGE>
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout each
period is as follows:
<TABLE>
<CAPTION>
Emerging Growth Portfolio
-------------------------------------------------------------------------
Six Months Ended Years ended December 31,
June 30, 2000 1999 1998 1997 1996
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 36.15 $ 23.60 $25.71 $ 32.86 $ 29.09
Income (loss) from investment operations:
Net investment loss/(a)/ (.27) (.41) (.33) (.37) (.32)
Net realized and unrealized gain (loss) on investments 5.58 12.96 (.63) (2.14) 6.73
-------- -------- ------ -------- --------
Total from investment operations 5.31 12.55 (.96) (2.51) 6.41
Less distributions:
Distribution from net realized gains on investments - - (1.15) (4.64) (2.64)
Net asset value at end of period $ 41.46 $ 36.15 $23.60 $ 25.71 $ 32.86
======== ======== ====== ======== ========
Total Return (%) 14.7/(c)/ 53.2 (3.1) (8.6) 22.5
Ratio/Supplemental Data
Net Assets at end of period (in thousands) $115,043 $105,128 $93,115 $139,983 $185,595
Ratio of expenses to average net assets (%) 1.47/(b)/ 1.59 1.55 1.44 1.48
Ratio of net investment loss to average net assets (%) (1.35)/(b)/ (1.56) (1.37) (1.18) (0.97)
Portfolio turnover rate (%)/(b)/ 86 63 49 75 64
Average commission rate paid $ .0332 $ .0305 $.0280 $ .0337 $ .0413
</TABLE>
_______________
Notes:
/(a)/ The net investment loss per share data was determined using average
shares outstanding during the period.
/(b)/ Annualized
/(c)/ Not annualized
16
<PAGE>
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the
period is as follows:
<TABLE>
<CAPTION>
Micro-Cap Portfolio
--------------------------------------------------------------------------------
Six Months Ended Years Ended December 31, *January 1, 1996-
June 30, 2000 1999 1998 1997 December 31, 1996
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 16.94 $ 14.18 $ 13.59 $ 12.28 $ 10.00
Income (loss) from investment operations:
Net investment loss/(a)/ (0.18) (.28) (.24) (.21) (.15)
Net realized and unrealized gain on investments 1.42 3.04 .83 1.52 2.43
-------- -------- -------- --------- ----------
Total from investment operations 1.24 2.76 .59 1.31 2.28
-------- -------- -------- --------- ----------
Net asset value at end of period $ 18.18 $ 16.94 $ 14.18 $ 13.59 $ 12.28
======== ======== ======== ========= ==========
Total Return (%) 7.3/(d)/ 19.5 4.3 10.7 22.8
Ratio/Supplemental Data
Net Assets at end of period (in thousands) $ 22,761 $ 21,301 $ 28,290 $ 36,837 $ 30,733
Ratio of expenses to average net assets (%) 2.00/(b)(c)/ 2.00/(b)/ 1.99/(b)/ 1.81 1.94
Ratio of net investment loss to average net assets (%) (1.91)/(c)/ (1.98) (1.83) (1.52) (1.15)
Portfolio turnover rate (%)/(c)/ 97 46 41 89 70
Average commission rate paid $ .0290 $ .0328 $ .0288 $ .0343 $ .0371
</TABLE>
_________
Notes:
/(a)/ The net investment loss per share data was determined using average
shares outstanding during the period.
/(b)/ Net of expense reimbursement from related parties. The expense ratio
would have been 2.13%, 2.17% and 2.06% for the period ended June 30, 2000, and
December 31, 1999 and 1998, respectively, before expense reimbursement and
earnings credits.
/(c)/ Annualized.
/(d)/ Not annualized.
* Commencement of operations
17
<PAGE>
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the
period is as follows:
<TABLE>
<CAPTION>
Mid-Cap Portfolio
----------------------------------------------------------------------------
Six Months Ended Years Ended December 31, *September 15, 1996-
June 30, 2000 1999 1998 1997 December 31, 1996
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 24.29 $ 12.86 $ 10.51 $10.29 $10.00
Income (loss) from investment operations:
Net investment loss/(a)/ (.25) (.31) (.21) (.19) (.05)
Net realized and unrealized gain on investments 4.87 14.22 2.56 .76 .34
-------- -------- --------- ------ ------
Total from investment operations 4.62 13.91 2.35 .57 .29
Less distributions:
Distributions from net realized gains on investments - (2.48) - (.35) -
Net asset value at end of period $ 28.91 $ 24.29 $ 12.86 $10.51 $10.29
======== ======== ========= ====== ======
Total Return (%) 19.0/(d)/ 112.7 22.4 5.4 2.9/(d)/
Ratio/Supplemental Data
Net Assets at end of period (in thousands) $ 16,311 $ 14,085 $ 6,916 $6,347 $7,295
Ratio of expenses to average net assets (%) 1.88/(c)/ 2.00/(b)/ 2.00/(b)/ 2.00/(b)/ 2.00/(b)(c)
Ratio of net investment loss to average net assets (%) (1.77)/(c)/ (1.93) (1.94) (1.81) (1.62)/(c)/
Portfolio turnover rate (%)/(c)/ 111 153 72 106 21/(c)/
Average commission rate paid $ .0240 $ .0345 $ .0305 $.0318 $.0371
</TABLE>
__________
Notes:
/(a)/ The net investment loss per share data was determined using average
shares outstanding during the period.
/(b)/ Net of expense reimbursement from related parties. The expense ratios
would have been 2.43%, 2.61%, 2.46% and 3.42%, for the period December 31, 1999,
1998, 1997 and 1996, respectively, before expense reimbursement and earnings
credits.
/(c)/ Annualized.
/(d)/ Not annualized.
* Commencement of operations.
18
<PAGE>
[LOGO] The Oberweis Funds
Trustees and Officers
James D. Oberweis Thomas J. Burke
Trustee and President Trustee
Douglas P. Hoffmeyer Edward F. Streit
Trustee Trustee
Patrick B. Joyce Martin L. Yokosawa
Executive Vice President Senior Vice President
Treasurer
James W. Oberweis Steven J. LeMire
Senior Vice President Vice President
Secretary
Manager and Investment Advisor
Oberweis Asset Management, Inc.
951 Ice Cream Dr., North Aurora, IL 60542
1-800-323-6166
www.oberweis.net
Distributor
Oberweis.net, Inc.
951 Ice Cream Dr., North Aurora, IL 60542
1-630-801-6000
www.oberweis.net
Custodian
State Street Bank and Trust Company
801 Pennsylvania, Kansas City, MO 64105
Transfer Agent
Investors Fiduciary Trust Company
P.O. Box 219042, Kansas City, MO 64121
1-800-245-7311
Counsel
Vedder, Price, Kaufman & Kammholz
222 North LaSalle Street, Chicago, IL 60601
Semi-Annual Report
------------------
Unaudited
June 30, 2000
[LOGO]
The Oberweis Funds
Emerging Growth Portfolio
Micro-Cap Portfolio
Mid-Cap Portfolio
