PATHFINDER FUND
* * * *
Semi-Annual Report
(Unaudited)
November 1, 1998 - April 30, 1999
A NOTE FROM YOUR FUND'S PRESIDENT
Even as large caps pulled back from Price/Earnings ratios of
over 30, small caps rallied resulting in our Fund's gaining
12.65% from November 1, 1998 to April 30, 1999.*
Small caps are at historically low Price/Earnings ratios
relative to large caps. Your Fund's average Price/Earnings ratio
is under 20, with earnings and revenue growth averaging well
over 20%.
This year we're seeing some encouraging signs of a re-
emergence of interest in small caps. Stay tuned.
/s/ Ed Bernstein
At this writing, the Fund's Manager (including its officers
and directors) owns more than 10% of the Fund's shares.
The Fund's price is quoted in the Wall Street Journal,
USA Today, Investor's Business Daily, and other major newspapers.
Barron's has quotes on a weekly basis. If we're not in your
paper, call (800) 444-4778 for daily prices.
* The Fund's average total returns for the one-, five- and ten-
year periods ended April 30, 1999, were (22.16)%, 7.63%, and
2.97%, respectively, as computed according to the SEC's rules.
Past performance is not predictive of future results. Investment
return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their
original cost.
PATHFINDER FUND
Schedule of Investments
April 30, 1999
(Unaudited)
Shares Market Value
- ------ ------------
COMMON STOCKS (100.29%)
COMMUNICATIONS (11.50%)
500 Alpine Group, Inc. (The) $ 6,938
2,500 Applied Signal Technology, Inc. 16,250
5,500 CTC Communications Corp. 115,844
3,000 Gentner Communications Corp. 11,625
13,000 Intelect Communications, Inc. 25,594
8,000 International FiberCom, Inc. 51,500
--------
Total . . . . . . . . . . . . . 227,751
--------
DIVERSIFIED OPERATIONS (9.25%)
2,800 American National Financial* 14,700
2,000 BMC Industries, Inc.* 17,875
6,000 Quixote Corporation * 73,312
3,000 Reliability Incorporated 11,625
1,000 Rush Enterprises, Inc. 14,125
5,500 Summa Industries 51,563
--------
Total . . . . . . . . . . . . . 183,200
--------
ELECTRONICS/INSTRUMENTATION (6.83%)
32,000 All American Semiconductor 23,002
3,000 American Superconductor Corp. 37,500
3,000 Detection Systems, Inc. 27,375
7,000 JMAR Technologies, Inc. 16,625
2,000 Measurement Specialities, Inc. 16,000
5,000 Winland Electronics, Inc. 15,000
--------
Total . . . . . . . . . . . . . 135,502
--------
ENVIRONMENTAL PRODUCTS/SERVICES (2.42%)
2,000 Abatix Environmental Corp. 6,375
10,000 Hi-Rise Recycling Systems, Inc. 40,625
19,000 Recycling Industries, Inc. 950
--------
Total . . . . . . . . . . . . . 47,950
--------
FOOD/RESTAURANT (6.29%)
5,000 Hawaiian Natural Water Co. 8,438
8,800 Main St. and Main, Inc. 29,012
8,500 Suprema Specialties, Inc. 48,875
12,000 Vermont Pure Holdings, Ltd. 38,250
--------
Total . . . . . . . . . . . . . 124,575
--------
HEALTH/BEAUTY (4.88%)
19,000 Bradley Pharmaceuticals 25,532
3,000 Castle Dental Centers, Inc. 22,688
5,000 IVC Industries, Inc. 5,000
3,000 Styling Technology Corp. 43,500
--------
Total . . . . . . . . . . . . . 96,720
--------
LEISURE (8.47%)
16,000 ARC International Corp. 23,000
4,500 Acclaim Entertainment, Inc. 29,250
6,000 Ballantyne of Omaha, Inc. 47,624
5,000 Concord Camera Corp. 21,875
11,000 Grand Toys International, Inc. 46,063
--------
Total . . . . . . . . . . . . . 167,812
--------
MANUFACTURING (7.57%)
25,000 Allied Devices Corporation 32,033
2,500 Genlyte Group, Inc. 47,500
3,300 K-Tron International, Inc. 60,740
3,500 Neutral Posture Ergonomics 6,563
1,000 Plasma-Therm, Inc. 3,187
--------
Total . . . . . . . . . . . . . 150,023
--------
MEDICAL PRODUCTS/SERVICES (7.93%)
29,000 Biomerica, Inc. 38,063
1,500 Hanger Orthopedic Group, Inc. 21,937
11,800 Medical Action Industries, Inc. 30,238
1,000 OEC Medical Systems, Inc. 23,688
20,000 Trinity Biotech plc ADR 43,125
--------
Total . . . . . . . . . . . . . 157,051
--------
RETAIL (14.82%)
3,000 Active Apparel Group, Inc. 8,250
5,000 Big Dog Holdings, Inc.* 27,500
11,800 Loehmann's, Inc. 19,913
6,000 Phar-Mor, Inc. 26,250
11,500 Shop At Home, Inc. 160,281
20,000 Strouds, Inc. 35,000
3,000 U.S. Home & Garden, Inc. 16,500
--------
Total . . . . . . . . . . . . . . 293,694
--------
SOFTWARE SYSTEMS/TRAINING (11.13%)
15,000 Canterbury Information Technology 24,375
7,000 Computer Outsourcing Services 61,250
7,000 Computron Software, Inc. 8,313
10,000 FTI Consulting, Inc. 40,000
7,500 4Front Technologies, Inc. 66,093
7,000 Interface Systems, Inc. 15,750
3,000 Zitel Corporation 4,688
--------
Total . . . . . . . . . . . . . 220,469
--------
OTHER (9.20%)
2,600 AMCON Distributing Company* 17,062
3,000 Ampex Corporation 13,688
2,500 D.G. Jewellery of Canada Ltd. 18,437
2,000 Fields Aircraft Spares, Inc. 10,500
7,000 Government Technology Services, Inc. 27,563
17,000 ITEX Corporation 12,750
11,000 International Business Schools, Inc. 13,750
21,000 Mitek Systems, Inc. 32,812
11,000 OTR Express, Inc. 35,750
--------
Total . . . . . . . . . . . . . 182,312
--------
Total Investments in Securities
(Cost $2,053,010)** 100.29 % $ 1,987,059
------ ---------
Liabilities in Excess of
of Other Assets ( 0.29)% ( 5,804)
------ ---------
Total Net Assets 100.00 % $ 1,981,255
====== =========
* Income-producing security (all other securities are non-
income producing)
** Cost for federal income tax purposes is $2,061,248
and net unrealized appreciation consists of:
Gross Unrealized Appreciation $ 401,931
Gross Unrealized Depreciation (476,120)
-------
Net Unrealized Depreciation $ ( 74,189)
=======
See Notes to Financial Statements
PATHFINDER FUND
Statement of Assets and Liabilities
Apri1 30, 1999
(Unaudited)
ASSETS:
Investments in securities, at value
(identified cost $2,053,010)
(Notes 2A and 3). . . . . . . . . . . . . $ 1,987,059
Cash . . . . . . . . . . . . . . . . . . . . . 28,754
Receivables:
Investment securities sold. . . . . . . . 9,705
Dividends . . . . . . . . . . . . . . . . 200
Other assets . . . . . . . . . . . . . . . . . 8,676
----------
Total Assets. . . . . . . . . . . . . . . 2,034,394
----------
LIABILITIES:
Payables:
Investment securities purchased . . . . . 15,905
Capital shares redeemed . . . . . . . . . 3,230
Accrued expenses . . . . . . . . . . . . . . . 34,004
----------
Total Liabilities . . . . . . . . . . . . 53,139
----------
NET ASSETS . . . . . . . . . . . . . . . . . . $ 1,981,255
==========
Net asset value, offering and redemption
price per share
($1,981,255 / 258,407 shares). . . . . . . $ 7.67
=====
At April 30, 1999 the components of
net assets were as follows:
Paid-in capital . . . . . . . . . . . . . $ 1,974,135
Accumulated net realized gain
on investments. . . . . . . . . . . . . 73,071
Net unrealized depreciation
of investments. . . . . . . . . . . . . ( 65,951)
----------
Net Assets . . . . . . . . . . . . . $ 1,981,255
==========
See Notes to Financial Statements
PATHFINDER FUND
Statement of Operations
for the Six Months Ended April 30, 1999
(Unaudited)
INVESTMENT INCOME:
Income:
Dividends . . . . . . . . . . . . . . . $ 1,970
------
Total income. . . . . . . . . . . . 1,970
------
Expenses:
Investment Advisory Fee (Note 4) . . . . 8,885
Transfer Agent . . . . . . . . . . . . . 12,627
Custody. . . . . . . . . . . . . . . . . 6,880
Professional Fees. . . . . . . . . . . . 6,352
Insurance. . . . . . . . . . . . . . . . 4,026
Accounting and Pricing . . . . . . . . . 9,939
Trustee Fees . . . . . . . . . . . . . . 2,710
Registration Fees. . . . . . . . . . . . 5,490
Miscellaneous. . . . . . . . . . . . . . 391
-------
Total expenses. . . . . . . . . . . 57,300
Reimbursement of expenses (Note 4). . . . . . ( 32,197)
Fee reduction (Note 5). . . . . . . . . . . . ( 292)
-------
Net expenses. . . . . . . . . . . . 24,811
-------
Net investment loss. . . . . . ( 22,841)
------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net realized gain on
investment securities. . . . . . . . . . . . 108,035
Net increase in unrealized
depreciation of investment securities. . . . 151,486
-------
Net gain on investments . . . . . . 259,521
-------
Net increase in net assets
resulting from operations . . . . $ 236,680
=======
See Notes to Financial Statements
PATHFINDER FUND
Statement of Changes in Net Assets
Six Months Ended Year Ended
April 30, 1999 October 31, 1998
---------------- ----------------
(Unaudited)
Operations:
Net investment loss. . . . . $ ( 22,841) $ ( 27,293)
Net realized gain on
investment securities. . . 108,035 4,660
Net change in unrealized
appreciation (depreciation)
of investment securities.. 151,486 (862,384)
-------- --------
Net increase (decrease)
in net assets resulting
from operations. . . . . . 236,680 (885,017)
-------- --------
Distributions from
net realized gains
($0.01 and $0.43,
respectively). . . . . . . (3,225) (136,349)
--------- --------
Capital share transactions:
Shares sold. . . . . . . . 257,962 2,084,394
Shares reinvested. . . . . 2,916 124,769
Shares redeemed. . . . . . (497,175) (3,020,092)
--------- ----------
Net decrease from capital
share transactions (a) . . (236,297) (810,929)
--------- ---------
Total decrease
in net assets. . . . . . (2,842) (1,832,295)
Net assets at the beginning
of the period. . . . . . . 1,984,097 3,816,392
--------- ---------
Net assets at the end
of the period. . . . . . . $ 1,981,255 $ 1,984,097
========= =========
(a) A summary of capital
share transactions
(number of shares) is
as follows:
Shares sold. . . . . . . 34,852 221,522
Shares reinvested. . . . 415 14,697
Shares redeemed. . . . . (67,747) (322,482)
--------- ---------
Net decrease . . . . . . . (32,480) (86,263)
========= =========
See Notes to Financial Statements
PATHFINDER FUND
FINANCIAL HIGHLIGHTS
For a share outstanding
throughout the period
Six Months Ended
April 30, 1999
(Unaudited)
PER SHARE DATA
Net asset value at beginning of period. . . . $ 6.82
-----
Income from investment operations
Net investment loss . . . . . . . . . . . . . (0.09)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 0.95
-----
Total from investment operations. . . . . 0.86
-----
Less distributions
Distributions from realized gains . . . . . . (0.01)
Distributions from paid-in capital. . . . . . --
Total dividends and distributions. . . . . (0.01)
-----
Net asset value at end of period. . . . . . . $ 7.67
=====
TOTAL RETURN 12.65%*
RATIOS / SUPPLEMENTAL DATA
Net assets at end of period
(000's omitted) . . . . . . . . . . . . . . $1,981
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 2.50%**
Ratio of expenses-net (b) . . . . . . . . . . 2.47%**
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (2.27)%**
Portfolio turnover rate . . . . . . . . . . . 36.55 %
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) . . . . . . . . . . . $ 42
Average number of shares
outstanding during the period
(000's omitted) (d) . . . . . . . . . . . 278
Average amount of debt per
share during the period (d) . . . . . . . $ 0.15
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). . . . . . . . . . . . . . $ 17
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) . . . . . . . . . . . --
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) . . . . . . . . . . . --
Average amount of debt per
share during the period (d) . . . . . . . --
Year Ended
October 31, 1994
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 7.34
----
Income from investment operations
Net investment income (loss). . . . . . . . . (.39)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . .27
---
Total from investment operations. . . . . (.12)
---
Less distributions
Distributions from realized gains . . . . . . --
Distributions from paid-in capital. . . . . . (.35)
Total dividends and distributions. . . . . (.35)
-----
Net asset value at end of period. . . . . . . $ 6.87
====
TOTAL RETURN (1.57)%
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . $ 2,632
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 6.19 %
Ratio of expenses-net (b) . . . . . . . . . . 6.19 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (5.56)%
Portfolio turnover rate . . . . . . . . . . . 89.62 %
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) . . . . . . . . . . . --
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 5.70%* 4.25%, 4.14%,
3.62%, 3.29%, and 7.06%, 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
(5.50)%* (3.11)%, (3.94)%, (3.37)%, (2.83)%, and (6.44)%,
respectively.
(d) Averages computed on a daily basis.
* Not annualized
** Annualized
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS April 30, 1999
(Unaudited)
______________________________________________________________
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.
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 six months ended April 30, 1999, the cost of purchases
and the proceeds from the sale of securities, excluding
short-term notes, for the Fund aggregated $749,527 and
$1,021,564, 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.
The Manager has agreed that, in any fiscal year, if the
operating expenses of the Fund (including the fees payable to the
Manager but excluding taxes, interest, distribution fees,
brokerage and extraordinary expenses) exceed the expense
limitations applicable to the Fund imposed by state securities
laws or any regulations thereunder, the Manager will reduce its
fees by the extent of such excess (unless the Manager obtains a
waiver of or variance from such limitations by the appropriate
state securities authorities) and, if required pursuant to any
such laws or regulations, will reimburse the Fund in the amount
of such excess. The Manager also currently intends to limit the
total operating expenses of the Fund to 2.50% of average daily
net assets. Accordingly, the Manager waived its investment
advisory fee of $8,885 and reimbursed $23,312 in other expenses
for the six months ended April 30, 1999. Effective May 1, 1999,
the Manager will cease reimbursing Fund expenses to maintain an
expense ratio no greater than 2.5%. The Manager will continue to
waive its management fee and reimbursement under the 12b-1 plan.
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 the six months ended April 30, 1999.
Certain officers and Trustees of the Fund (the "Trust") are
also officers and/or Directors of the Manager. During the six
months ended April 30, 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
$292 for the Trust during the six months ended April 30, 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.
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
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.
