PATHFINDER FUND
* * * *
Annual Report
November 1, 1998 - October 31, 1999
PATHFINDER FUND
Schedule of Investments
October 31, 1999
Shares Market Value
COMMON STOCKS (108.28%)
COMMUNICATIONS (9.32%)
1,000 Alpine Group, Inc. (The) $ 13,188
2,500 Applied Signal Technology, Inc. * 24,531
2,600 CTC Communications Corp. 45,825
2,000 Gentner Communications Corp. 21,750
18,000 Intelect Communications, Inc. 16,875
5,000 International FiberCom, Inc. 30,000
--------
Total . . . . . . . . . . . . . 152,169
--------
DIVERSIFIED OPERATIONS (11.00%)
2,800 American National Financial, Inc. * 11,200
2,000 BMC Industries, Inc. * 11,625
6,500 Quixote Corporation * 96,688
3,000 Reliability Incorporated 8,062
1,000 Rush Enterprises, Inc. 14,875
3,300 Summa Industries 37,125
--------
Total . . . . . . . . . . . . . 179,575
--------
ELECTRONICS/INSTRUMENTATION (6.71%)
8,000 All American Semiconductor 26,500
3,000 Detection Systems, Inc. 30,750
7,000 JMAR Technologies, Inc. 10,500
2,000 Scientific Technologies, Inc. * 10,750
5,000 TII Industries, Inc. 5,938
12,000 Winland Electronics, Inc. 25,126
--------
Total . . . . . . . . . . . . . 109,564
--------
FOOD/RESTAURANT (8.60%)
8,000 Hawaiian Natural Water Company 5,760
8,800 Main Street and Main, Inc. 30,250
3,000 Sizzler International Inc. 6,000
7,500 Suprema Specialties, Inc. 59,062
14,000 Vermont Pure Holdings, Ltd. 39,375
--------
Total . . . . . . . . . . . . . 140,447
--------
HEALTH/BEAUTY (6.54%)
3,000 BioSpecifics Technologies Corp. 5,625
16,000 Bradley Pharmaceuticals 16,501
8,000 Castle Dental Centers, Inc. 19,000
625 IVC Industries, Inc. 3,027
17,000 Styling Technology Corp. 62,688
--------
Total . . . . . . . . . . . . . 106,841
--------
LEISURE (4.14%)
16,000 ARC International Corp. 21,000
9,000 Ballantyne of Omaha, Inc. 46,688
--------
Total . . . . . . . . . . . . . 67,688
--------
MANUFACTURING (3.71%)
25,000 Allied Devices Corporation 31,250
10,000 Jenna Lane, Inc. 9,063
6,000 Neutral Posture Ergonomics 10,500
1,400 Plasma-Therm, Inc. 9,800
--------
Total . . . . . . . . . . . . . 60,613
--------
MEDICAL PRODUCTS/SERVICES (7.37%)
10,000 Biomerica, Inc. 35,000
2,300 Hanger Orthopedic Group, Inc. 28,319
8,000 Medical Action Industries, Inc. 24,500
20,000 Trinity Biotech plc ADR 32,500
--------
Total . . . . . . . . . . . . . 120,319
--------
RETAIL (19.97%)
8,000 Active Apparel Group, Inc. 23,000
5,000 Big Dog Holdings, Inc. * 27,812
1,000 Cost-U-Less, Inc. 4,750
12,800 Loehmann's, Inc. 1,024
2,000 One Price Clothing Stores, Inc. 6,250
6,000 Phar-Mor, Inc. 25,875
14,500 Shop at Home, Inc. 154,969
21,000 Strouds, Inc. 51,187
13,500 U. S. Home & Garden, Inc. 31,219
--------
Total . . . . . . . . . . . . . . 326,086
--------
SOFTWARE SYSTEMS/TRAINING (11.88%)
12,000 Canterbury Information Technology, Inc. 31,500
2,500 Computer Outsourcing Services, Inc. 25,625
10,000 Computron Software, Inc. 5,000
9,000 FTI Consulting, Inc. 39,375
2,600 4Front Technologies, Inc. 35,425
3,000 Interface Stystems, Inc. 35,062
3,000 Netsmart Technologies, Inc. 19,500
3,000 Zitel Corporation 2,531
--------
Total . . . . . . . . . . . . . 194,018
--------
OTHER (19.04%)
4,100 AMCON Distributing Company * 28,956
7,000 American Pacific Bank B 23,188
6,000 Ampex Corporation 14,625
6,000 Argosy Education Group, Inc. 28,500
4,000 Business Resource Group 14,750
5,000 D. G. Jewelry, Inc. 20,000
11,000 Educor International, Inc. 16,500
1,000 First Aviation Services, Inc. 5,250
7,000 Government Technology Services, Inc. 19,469
12,000 Hi-Rise Recycling Systems, Inc. 27,000
7,000 Hirsch International Corp. 13,891
17,000 ITEX Corporation 6,800
1,000 Media Arts Group, Inc. 4,125
12,000 Mitek Systems, Inc. 46,500
2,000 Natural Alternatives 7,000
9,000 OTR Express, Inc. 21,937
2,600 Simula Inc. 12,350
---------
Total . . . . . . . . . . . . . 310,841
--------
Total Investments in Securities
(Cost $2,059,358)** 108.28 % $ 1,768,161
------ ---------
Liabilities in Excess of
of Other Assets ( 8.28)% ( 135,277)
------ ---------
Total Net Assets 100.00 % $ 1,632,884
====== =========
* Income-producing security (all other securities are
non-income producing)
** Cost for federal income tax purposes is $2,063,987,
and net unrealized depreciation consists of:
Gross Unrealized Appreciation $ 311,036
Gross Unrealized Depreciation (606,862)
-------
Net Unrealized Depreciation $ (295,826)
=======
See Notes to Financial Statements
PATHFINDER FUND
Statement of Assets and Liabilities
October 31, 1999
ASSETS:
Investments in securities, at value
(identified cost $2,059,358)
(Notes 2A and 3). . . . . . . . . . . . . $ 1,768,161
Receivables:
Capital shares sold . . . . . . . . . . . 471
Dividend. . . . . . . . . . . . . . . . . 156
Investment securities sold. . . . . . . . 160
Other assets . . . . . . . . . . . . . . . . . 4,083
----------
Total Assets. . . . . . . . . . . . . . . 1,773,031
----------
LIABILITIES:
Cash overdraft . . . . . . . . . . . . . . . . $ 76,427
Payables:
Investment securities purchased . . . . . 12,085
Accrued expenses . . . . . . . . . . . . . . . 51,635
----------
Total Liabilities . . . . . . . . . . . . 140,147
----------
NET ASSETS . . . . . . . . . . . . . . . . . . $ 1,632,884
==========
Net asset value, offering and redemption
price per share
($1,632,884 / 210,504 shares). . . . . . . . $ 7.76
=====
At October 31, 1999 the components of
net assets were as follows:
Paid-in capital . . . . . . . . . . . . . $ 1,576,312
Accumulated net realized gain
on investments. . . . . . . . . . . . . 347,769
Net unrealized depreciation
of investments. . . . . . . . . . . . . (291,197)
----------
Net Assets . . . . . . . . . . . . . $ 1,632,884
==========
See Notes to Financial Statements
PATHFINDER FUND
Statement of Operations
for the Year Ended October 31, 1999
INVESTMENT INCOME:
Income:
Dividends . . . . . . . . . . . . . . . $ 3,855
Other income . . . . . . . . . . . . . . 27
------
Total income. . . . . . . . . . . . 3,882
------
Expenses:
Investment Advisory Fee (Note 4) . . . . 17,345
Transfer Agent . . . . . . . . . . . . . 18,464
Custody. . . . . . . . . . . . . . . . . 10,768
Professional Fees. . . . . . . . . . . . 27,313
Insurance. . . . . . . . . . . . . . . . 6,918
Accounting and Pricing . . . . . . . . . 19,768
Trustee Fees . . . . . . . . . . . . . . 5,406
Registration Fees. . . . . . . . . . . . 8,362
Miscellaneous. . . . . . . . . . . . . . 906
-------
Total expenses. . . . . . . . . . . 115,250
Reimbursement of expenses (Note 4). . . . . . ( 38,217)
Fee reduction (Note 5). . . . . . . . . . . . ( 1,922)
-------
Net expenses. . . . . . . . . . . . 75,111
-------
Net investment loss. . . . . . ( 71,229)
------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain on
investment securities. . . . . . . . . . . . 430,956
Net decrease in unrealized
appreciation of investment securities. . . . ( 73,760)
-------
Net gain on investments. . . . . . . 357,196
-------
Net increase in net assets
resulting from operations. . . . . $ 285,967
=======
See Notes to Financial Statements
PATHFINDER FUND
Statement of Changes in Net Assets
For the Year Ended October 31,
1999 1998
------------- -------------
Operations:
Net investment loss. . . . . $ ( 71,229) $ ( 27,293)
Net realized gain on
investment securities. . . 430,956 4,660
Net change in unrealized
depreciation of
investment securities. . . ( 73,760) (862,384)
------- -------
Net increase (decrease)
in net assets resulting
from operations. . . . . . 285,967 (885,017)
------- -------
Distributions from
net realized gains
($0.01 and $0.43,
respectively). . . . . . . ( 3,225) (136,349)
--------- -------
Capital Share transactions:
Shares sold. . . . . . . . 397,274 2,084,394
Shares reinvested. . . . . 2,917 124,769
Shares redeemed. . . . . . (1,034,146) (3,020,092)
--------- ---------
Net decrease
from capital share
transactions (a) . . . . . ( 633,955) (810,929)
------- -------
Total decrease
in net assets. . . . . . ( 351,213) (1,832,295)
Net assets at the beginning
of the year. . . . . . . . 1,984,097 3,816,392
--------- ---------
Net assets at the end
of the year. . . . . . . . $ 1,632,884 $ 1,984,097
========= =========
(a) A summary of capital
share transactions
(number of shares) is
as follows:
Shares sold. . . . . . . 51,102 221,522
Shares reinvested. . . . 415 14,697
Shares redeemed. . . . . (131,900) (322,482)
------- --------
Net decrease . . . . . . . ( 80,383) ( 86,263)
======= ========
See Notes to Financial Statements
PATHFINDER FUND
FINANCIAL HIGHLIGHTS
_________________________________________________________________
Year Ended
October 31,1999
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 6.82
-----
Income from investment operations
Net investment income (loss). . . . . . . . . (.34)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 1.29
-----
Total from investment operations. . . . . .95
-----
Less distributions
Distributions from realized gains . . . . . . ( .01)
Distributions from paid-in capital. . . . . . --
-----
Total dividends and distributions. . . . . ( .01)
-----
Net asset value at end of year. . . . . . . . $ 7.76
=====
TOTAL RETURN 13.97%
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . 1,633
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 3.89 %
Ratio of expenses-net (b) . . . . . . . . . . 3.79 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (3.95)%
Portfolio turnover rate . . . . . . . . . . . 69.28 %
Borrowings for the period:
Amount of debt outstanding
at the end of period
(000's omitted) . . . . . . . . . . . . . $ 76
Average amount of debt
outstanding during the period
(000's ommitted) (d). . . . . . . . . . . $ 44
Average number of shares
outstanding during the period
(000's omitted) (d) . . . . . . . . . . . 259
Average amount of debt per
share during the period (d) . . . . . . . $ 0.17
FINANCIAL HIGHLIGHTS
_________________________________________________________________
Year Ended
October 31,1998
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 10.12
-----
Income from investment operations
Net investment income (loss). . . . . . . . . (.09)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . (2.78)
-----
Total from investment operations. . . . . (2.87)
-----
Less distributions
Distributions from realized gains . . . . . . ( .43)
Distributions from paid-in capital. . . . . . --
-----
Total dividends and distributions. . . . . ( .43)
-----
Net asset value at end of year. . . . . . . . $ 6.82
=====
TOTAL RETURN (29.22)%
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . 1,984
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 2.11 %
Ratio of expenses-net (b) . . . . . . . . . . 2.09 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (0.95)%
Portfolio turnover rate . . . . . . . . . . . 44.71 %
Average commission rate per share . . . . . . $ --
Borrowings for the period:
Amount of debt outstanding
at the end of period
(000's omitted) . . . . . . . . . . . . . $ --
Average amount of debt
outstanding during the period
(000's ommitted) (d). . . . . . . . . . . $ 151
Average number of shares
outstanding during the period
(000's omitted) (d) . . . . . . . . . . . 325
Average amount of debt per
share during the period (d) . . . . . . . $ 0.46
Year Ended
October 31, 1997
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 9.01
-----
Income from investment operations
Net investment income (loss). . . . . . . . . (.10)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 2.39
-----
Total from investment operations. . . . . 2.29
-----
Less distributions
Distributions from realized gains . . . . . . (1.18)
Distributions from paid-in capital. . . . . . --
-----
Total dividends and distributions. . . . . (1.18)
-----
Net asset value at end of year. . . . . . . . $ 10.12
=====
TOTAL RETURN 30.26 %
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . 3,816
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 1.37 %
Ratio of expenses-net (b) . . . . . . . . . . 1.28 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (1.08)%
Portfolio turnover rate . . . . . . . . . . . 130.56 %
Average commission rate per share . . . . . . $ .0327
Borrowings for the period:
Amount of debt outstanding
at the end of period
(000's omitted) . . . . . . . . . . . . . $ 1,096
Average amount of debt
outstanding during the period
(000's omitted) (d) . . . . . . . . . . . $ 57
Average number of shares
outstanding during the period
(000's omitted) (d) . . . . . . . . . . . 387
Average amount of debt per
share during the period (d) . . . . . . . $ 0.15
Year ended
October 31, 1996
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 8.41
----
Income from investment operations
Net investment income (loss). . . . . . . . . (.07)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 1.29
----
Total from investment operations. . . . . 1.22
----
Less distributions
Distributions from realized gains . . . . . . (.62)
Distributions from paid-in capital. . . . . . --
----
Total dividends and distributions. . . . . (.62)
---
Net asset value at end of period. . . . . . . $ 9.01
====
TOTAL RETURN 15.60 %
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . 3,240
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . .99 %
Ratio of expenses-net (b) . . . . . . . . . . .99 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (0.74)%
Portfolio turnover rate . . . . . . . . . . . 118.55 %
Average commission rate per share . . . . . . $ .0297
Borrowings for the period:
Amount of debt outstanding
at the end of period. . . . . . . . . . . --
Average amount of debt
outstanding during the period (d) . . . . --
Average number of shares
outstanding during the period
(000's omitted) (d) . . . . . . . . . . . 317
Average amount of debt per
share during the period (d) . . . . . . . --
Year ended
October 31, 1995
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 6.87
----
Income from investment operations
Net investment income (loss). . . . . . . . . (.05)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 1.59
----
Total from investment operations. . . . . 1.54
----
Less distributions
Distributions from realized gains . . . . . . --
Distributions from paid-in capital. . . . . . --
----
Total dividends and distributions. . . . . --
----
Net asset value at end of year. . . . . . . . $ 8.41
====
TOTAL RETURN 22.42 %
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . 2,183
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 1.19 %
Ratio of expenses-net (b) . . . . . . . . . . 1.19 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (0.72)%
Portfolio turnover rate . . . . . . . . . . . 59.89 %
Average commission rate per share . . . . . . --
Borrowings for the period:
Amount of debt outstanding
at the end of period. . . . . . . . . . . --
Average amount of debt
outstanding during the period (d) . . . . --
Average number of shares
outstanding during the period
(000's omitted) (d) . . . . . . . . . . . 327
Average amount of debt per
share during the period (d) . . . . . . . --
(a) Ratio of expenses to average net assets prior to fee waiver
and expense reimbursement by the Adviser was 5.81, 4.25%, 4.14%,
3.62%, and 3.29%, respectively.
(b) Ratio of expenses-net includes the effect of custody credits.
(c) Ratio of net investment income (loss) to average net assets
prior to fee waiver and expense reimbursement by the Adviser was
(5.62)%, (3.11)%, (3.94)%, (3.37)%, and (2.83)%, respectively.
(d) Averages computed on a daily basis.
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS October 31, 1999
_________________________________________________________________
Note 1 -- Organization
PATHFINDER FUND (the "Fund") is a series of shares of Pathfinder
Trust (the "Trust") which is registered under the Investment
Company Act of 1940, as amended, as a diversified open-end
management investment company. The Trust was organized on
January 21, 1987, as a Massachusetts business trust and may issue
an unlimited number of shares of beneficial interest without par
value in separate classes or "funds." Currently, the Trust
offers shares in one fund, PATHFINDER FUND. The Fund's objective
is long-term capital growth. The Fund seeks to achieve that
objective by investing substantially all of its assets in a
diversified portfolio of common stocks which the Fund's Manager
believes are significantly undervalued and which it expects to
appreciate in value generally over a period of three to five
years. The Fund invests primarily in the stocks of smaller
companies.
Note 2 -- Significant Accounting Policies
The following is a summary of the significant accounting
policies consistently followed by the Fund in the preparation of
its financial statements. The policies are in conformity with
generally accepted accounting principles.
A. SECURITY VALUATION. Portfolio securities of the Fund,
which are traded both on an exchange and in the over-the-counter
market, are valued according to the broadest and most
representative market. When portfolio securities are traded, the
valuation is the last reported sale price on the day of
valuation. If there is no such reported sale or the valuation is
based on the over-the-counter market, the securities are valued
at the mean between the bid and asked prices. Securities for
which reliable quotations are not readily available and
restricted securities are valued at their respective fair market
values as determined in good faith by the Board of Trustees of
the Trust. Short-term investments are stated at cost, which,
when combined with accrued interest, approximates market value.
B. FEDERAL INCOME TAXES. It is the Fund's policy to comply
with the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its
taxable income to its shareholders. Therefore, no federal income
tax provision is required for the Fund.
C. OTHER. As is common in the industry, security transactions
are accounted for on the date the securities are purchased or
sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date.
D. USE OF ESTIMATES IN FINANCIAL STATEMENTS. In preparing
financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions
that affect the reported amounts of assets and liabilities at the
date of the financial statements, as well as the reported amounts
of income and expenses during the period. Actual results may
differ from these estimates.
Note 3 -- Investments
For the year ended October 31, 1999, the cost of purchases and
the proceeds from the sale of securities, excluding short-term
notes, for the Fund aggregated $1,363,524 and $1,954,723,
respectively.
Note 4 -- Investment Management and Distribution Agreements
The Fund has entered into an Investment Management Agreement
with the Manager under which the Fund pays a fee, computed daily
and payable quarterly, at an annual rate of .875% of the Fund's
average daily net assets. The Manager is responsible for
supervising the performance of all administrative services in
connection with the management of the Fund.
During the year ended October 31, 1999, the Manager had been
voluntarily waiving its advisory fees and reimbursing the Fund to
limit the total operating expenses of the Fund to 2.50% of
average daily net assets. As of May 1, 1999, the Manager ceased
voluntary reimbursement of operating expenses, and as of
September 7, 1999, the Manager ceased voluntary reimbursement of
its advisory fee. Accordingly, the Manager waived $14,905 in
advisory fees and reimbursed $23,312 in other expenses for the
year ended October 31, 1999.
The Trust has adopted a Plan pursuant to the rule 12b-1 under
the Investment Company Act of 1940 (the "Plan") on behalf of the
Fund, whereby it may pay up to a maximum annual rate of .25% of
its average daily net assets to the Manager for expenses incurred
in the distribution of the Fund's shares. Pursuant to this Plan
the Manager is entitled to reimbursement at the end of each month
for its actual expenses incurred in the distribution and
promotion of the Fund's shares, including the printing of
prospectuses and reports used for sales purposes, expenses of
preparation and printing of sales literature and other such
distribution-related expenses, a prorated portion of the
Manager's overhead expenses attributable to the distribution of
the Fund's shares (including leases, communications, salaries,
training, supplies, photocopying, interest on overhead, and any
other category of the Manager's expenses attributable to the
distribution of the Fund's shares) and fees paid to dealers,
banks or others as a distribution service fee for servicing
shareholders of the Fund. The Plan permits the Manager to carry
forward for a maximum of three years distribution expenses
covered by the Plan for which the Manager has not yet received
reimbursement. The Manager has waived reimbursement for all
distribution expenses under the Plan, including any accrued carry
forwards, for fiscal year 1999.
<PAGE>
Certain officers and Trustees of the Fund
(the "Trust") are also officers and/or Directors of the Manager. During
the year ended October 31, 1999 the Fund did not pay any compensation to
its officers.
Note 5 -- Custody of Securities
Under an agreement with the Custodian Bank, custody fees are
reduced by credits for cash balances. Such reductions totalled
$1,922 for the Trust during the year ended October 31, 1999. The
Fund's cash balances at the Custodian Bank, which earned credits
against custody fees, could have been invested in short-term
instruments at times when the cash balances rose to minimum
investable levels and at times when cash was not needed for
redemptions or securities purchased. Such short term investments
would produce additional investment income to the Fund.
Note 6 -- Subsequent Events
On December 3, 1999, the Board of Trustees of Pathfinder Trust
unanimously determined to liquidate and terminate the Trust and
PATHFINDER FUND (the "Fund"). The proposed liquidation remains
subject to approval by the Fund's shareholders. The Trust
intends to hold a special meeting of shareholders to approve the
liquidation in early January 2000 and to complete the liquidation
as soon as practicable after shareholder approval.
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders of PATHFINDER FUND and
the Board of Trustees of Pathfinder Trust
We have audited the accompanying statement of assets and
liabilities of PATHFINDER FUND, a series of shares of beneficial
interest of Pathfinder Trust, including the schedule of
investments, as of October 31, 1999, and the related statements
of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the
period then ended. These financial statements and financial
highlights are the responsibility of the Fund's 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 October 31, 1999, by correspondence
with the custodian and brokers. 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 PATHFINDER FUND as of
October 31, 1999, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with
generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
December 20, 1999
PATHFINDER FUND
P.O. Box 75231
Los Angeles, CA 90075-0231
(800) 444-4778
* * * *
OFFICERS AND TRUSTEES
Edwin R. Bernstein, President,
Chief Financial Officer, Trustee
H. Randolph Moore, Jr., Trustee
Patricia C. Nagle, Trustee
Werner Lange, Trustee
Patricia L. Stephan, Vice President,
Secretary, Trustee
* * * *
Manager
Pathfinder Advisers
Shareholder Servicing Agent
Unified Advisers, Inc.
Custodian
The Fifth Third Bank
Independent Auditors
Tait, Weller & Baker
This report is intended for
distribution to shareholders
of the Fund. It may also be
given to prospective investors
if preceded or accompanied by
the Fund's current Prospectus
which contains information
regarding fees, charges and
investment objectives and
policies.
