June 9, 1997
Securities and Exchange Commission
Attn: Filing Desk, Stop 1-4
450 Fifth Street, N.W.
Washington, DC 20549
Re: Professionally Managed Portfolios
File No. 811-5037
CIK No. 811030
Dear Sir or Madam:
On behalf of the above Registrant and pursuant to Rule 30b-2 under
the Investment Company Act of 1940, I enclose for filing via EDGAR,
a copy of the Annual Report to shareholders of the Pro-Conscience
Womens Fund series of the Registrant for the twelve month period
ended March 31, 1997.
If you have any questions, please contact me at (602) 952-1100.
Sincerely yours,
Robert H. Wadsworth
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
Annual Report
For the Year Ended
March 31, 1997
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
April 10, 1997
Dear Shareholders:
As Pro-Conscience Women's Equity Mutual Fund completes its third fiscal year
milestone, we take pleasure in recognizing the gains that women have made in the
workplace. Most notable is the growing number of women in top management
positions. Their accomplishments are reflected in the companies that make up the
Women's Equity Mutual Fund portfolio.
As of March 31, 1997, the Fund's annualized average returns are as follows:
<TABLE>
<CAPTION>
One Three Five From
Fund Year Year Year Inception
Pro-Conscience
Women's Equity Mutual
<S> <C> <C> <C>
Fund 7.92% 8.17% - . - 8.35%
</TABLE>
Over the past two years the market has benefitted from steady economic growth,
low inflation, and steadily rising corporate earnings. Over the past few months,
however, we have seen a decline in the stock market as the Federal Reserve acted
vigorously to restrain any hint of resurgent inflation in order to slow down
economic growth to the 2.5 percent level or below that the Federal Reserve
believes is consistent with steady prices.
In our portfolio we will continue to focus on companies with better-than-average
growth prospect, such as healthcare, technology, and consumer products
companies. We anticipate that the smaller companies may do relatively better in
the coming quarters, due to the influence of higher interest rates on the value
of the dollar. Rising U.S. interest rates relative to the rest of the world are
likely to lead to a stronger dollar and a stronger dollar will favor the
smaller, more domestically focused companies, which should be positive for many
of the smaller company holdings in our portfolio.
During the coming proxy season, we will use our votes to be a voice for women.
We have joined the United States Trust Company in filing shareholder resolutions
with two companies asking them to disclose their Equal Employment Opportunity
Commission employment data. We will also vote to promote diversity in senior
management levels and on corporate boards.
As always, we welcome any comments and suggestions that you may have, and we
thank you for your support.
Sincerely yours,
/s/
Linda C.Y. Pei
President
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
Pro-Conscience Women's Equity Fund
Value of $10,000 vs. S&P 500 Index
Annual Average Total Return
Periods Ended March 31, 1997
1 Year Inception (10/1/93)
7.92% 8.35%
Pro-Conscience S&P 500 Index
Women's Equity Fund
<S> <C> <C>
10/1/93 10,000 10,000
12/31/93 10,130 10,181
12/31/94 10,125 10,311
12/31/95 11,843 14,182
3/31/96 12,269 14,945
6/30/96 12,444 15,606
9/30/96 12,991 16,095
12/31/96 13,559 17,442
3/31/97 13,099 17,908
</TABLE>
Past performance is not predictive of future performance.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS at March 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
Shares COMMON STOCKS: 96.9% Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Durables: 3.8%
<S> <C> <C>
2,600 Champion Enterprises, Inc.*............................................. $ 38,675
1,200 Harley-Davidson, Inc.................................................... 40,650
1,500 Honda Motor, Ltd........................................................ 87,750
------
167,075
-------
Consumer Products and Services: 22.4%
1,200 Aptar Group, Inc........................................................ 45,900
1,500 Avon Products, Inc...................................................... 78,750
1,600 Carmike Cinemas, Inc.*.................................................. 45,800
2,700 Children's Discovery Centers America*................................... 14,175
2,200 Coca-Cola Company....................................................... 122,925
900 Colgate Palmolive Company............................................... 89,663
3,200 Cyanotech Corp.*........................................................ 17,800
2,187 Dollar General Corp..................................................... 68,344
1,200 Gillette Company........................................................ 87,150
900 Kimberly-Clark Corp..................................................... 89,438
2,400 May Department Stores Company........................................... 109,200
1,000 McDonald's Corp......................................................... 47,250
2,500 Odwalla, Inc.*.......................................................... 32,813
2,400 Price/Costco, Inc.*..................................................... 66,300
4,200 Richfood Holdings, Inc.................................................. 78,750
------
994,258
-------
Energy and Resources: 3.7%
900 Amoco Corp.............................................................. 77,963
2,500 Calenergy, Inc.*........................................................ 85,000
------
162,963
-------
Financial Services: 16.3%
1,125 American International Group, Inc....................................... 132,047
1,740 Bank of Boston Corp..................................................... 116,580
1,200 Bankamerica Corp........................................................ 120,900
2,800 Federal National Mortgage Association................................... 101,150
2,325 Norwest Corp............................................................ 107,531
2,000 Unum Corp............................................................... 146,000
-------
724,208
-------
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
SCHEDULE OF INVESTMENTS at March 31, 1997, Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Healthcare: 14.1%
1,500 Amgen, Inc.*............................................................ $ 83,813
1,075 Boston Scientific Corp.*................................................ 66,381
2,700 Invacare Corp........................................................... 63,450
1,900 Johnson & Johnson....................................................... 100,462
1,450 Medtronic, Inc.......................................................... 90,262
1,200 Merck & Company, Inc.................................................... 101,100
4,500 Quidel Corp.*........................................................... 17,437
1,450 Schering-Plough Corp.................................................... 105,488
-------
628,393
-------
Industrial Materials: 5.0%
2,600 Praxair, Inc............................................................ 116,675
2,000 Sonoco Products Company................................................. 54,000
2,600 TJ International, Inc................................................... 49,400
------
220,075
-------
Media and Publishing: 2.4%
1,050 Scholastic Corp.*....................................................... 29,662
1,050 Walt Disney Company..................................................... 76,650
------
106,312
-------
Producer Products: 4.6%
3,350 Baldor Electric Company................................................. 84,169
1,100 Illinois Tool Works, Inc................................................ 89,788
1,200 Wolverine Tube, Inc.*................................................... 31,200
------
205,157
-------
Technology: 14.3%
2,200 ADC Telecommunications, Inc.*........................................... 59,125
1,300 Automatic Data Processing, Inc.......................................... 54,437
1,500 Cisco Systems, Inc.*.................................................... 72,187
1,400 Computer Associates International, Inc.................................. 54,425
1,200 Hewlett Packard, Inc.................................................... 63,900
650 Intel Corp.............................................................. 90,431
1,200 Microsoft Corp.*........................................................ 110,025
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
SCHEDULE OF INVESTMENTS at March 31, 1997, Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Technology, continued
1,250 Sanmina Corp.*.......................................................... $ 55,937
325 Shared Medical Systems Corp............................................. 15,113
1,050 Xerox Corp.............................................................. 59,719
------
635,299
-------
Technology - Software and Services: 0.5%
1,200 Phamis, Inc.*........................................................... 21,300
------
Telecommunications - Equipment: 4.4%
900 Ameritech Corp.......................................................... 55,350
2,500 Century Telephone Enterprises, Inc...................................... 73,750
1,300 Lucent Technologies, Inc................................................ 68,575
------
197,675
-------
Transportation: 1.7%
3,500 Southwest Airlines Company.............................................. 77,437
------
Utilities: 3.7%
800 BellSouth Corp.......................................................... 33,800
2,500 SBC Communications, Inc................................................. 131,562
-------
165,362
-------
Total Common Stocks (cost $3,820,056)................................... 4,305,514
----- ---------
Total Investment in Securities (cost $3,820,056+): 96.9%................ 4,305,514
Other Assets less Liabilities: 3.1%..................................... 139,266
-------
Total Net Assets: 100.0% ............................................... $4,444,780
==========
<FN>
* Indicates non-income producing security.
+At March 31, 1997, the cost of securities for Federal tax purposes was the same
as the basis for financial reporting. Unrealized appreciation and depreciation
of securities were as follows:
Gross unrealized appreciation..................................... $ 708,864
Gross unrealized depreciation..................................... (223,406)
--------
Net unrealized appreciation................................ $ 485,458
=========
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES at March 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C>
Investments in securities, at value (identified cost $3,820,056) (Note 2-A) ........... $4,305,514
Cash................................................................................... 66,584
Receivables:
Due from Advisor................................................................. 34,328
Fund shares sold................................................................. 3,500
Investment securities sold....................................................... 50,917
Dividends and interest .......................................................... 3,618
Prepaid expenses....................................................................... 1,977
-----
Total assets .............................................................. 4,466,438
---------
LIABILITIES
Payables:
Administration fee............................................................... 2,568
Distribution fees................................................................ 2,829
Fund shares redeemed............................................................. 391
Accrued expenses ...................................................................... 15,870
------
Total liabilities.......................................................... 21,658
------
NET ASSETS .............................................................................. $4,444,780
==========
Net asset value, offering and redemption price per share
($4,444,780/367,200 shares outstanding;
unlimited number of shares authorized without par value) ........................ $12.10
======
COMPONENTS OF NET ASSETS
Paid-in capital ....................................................................... $3,961,835
Accumulated net realized loss on investments........................................... (2,513)
Net unrealized appreciation on investments............................................. 485,458
-------
Net assets ...................................................................... $4,444,780
==========
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS - For the Year Ended March 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income
<S> <C>
Dividends........................................................................ $ 44,555
Interest......................................................................... 12,475
------
Total income............................................................... 57,030
------
Expenses
Advisory fees (Note 3) .......................................................... 39,243
Administration fee (Note 3)...................................................... 30,000
Custodian and accounting fees.................................................... 22,663
Legal fees....................................................................... 12,224
Audit fee........................................................................ 12,001
Transfer agent fees.............................................................. 11,711
Registration fees ............................................................... 10,366
Distribution costs (Notes 3 and 4)............................................... 9,811
Reports to shareholders.......................................................... 5,426
Miscellaneous fees............................................................... 3,187
Trustees' fees .................................................................. 3,000
Insurance fees................................................................... 1,354
-----
Total expenses............................................................. 160,986
Less, expenses reimbursed/waived (Note 3).................................. (102,122)
--------
Net expenses............................................................... 58,864
------
Net investment loss ............................................... (1,834)
------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from security transactions .......................................... 75,795
Net change in unrealized appreciation on investments .................................. 153,825
-------
Net realized and unrealized gain on investments ........................... 229,620
-------
Net Increase in Net Assets Resulting from Operations ................ $ 227,786
=========
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
March 31, 1997 March 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM:
OPERATIONS
<S> <C> <C>
Net investment (loss) income ......................................... $ (1,834) $ 29,521
Net realized gain from security transactions .......................... 75,795 39,800
Net realized loss on short sale transactions........................... -0- (18,542)
Net change in unrealized appreciation on investments................... 153,825 308,748
------- -------
Net increase in net assets resulting from operations ............ 227,786 359,527
------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income.................................................. (2,977) (79,392)
------ -------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in
outstanding shares (a) ............................................. 911,202 1,515,669
------- ---------
Total increase in net assets .................................... 1,136,011 1,795,804
NET ASSETS
Beginning of year...................................................... 3,308,769 1,512,965
--------- ---------
End of year (including undistributed net investment
income of $0 and $2,658, respectively)......................... $4,444,780 $3,308,769
========== ==========
<FN>
(a) A summary of capital shares transactions is as follows:
Year Ended Year Ended
March 31, 1997 March 31, 1996
Shares Value Shares Value
Shares sold ...................................... 107,417 $1,339,632 149,768 $1,589,367
Shares issued in reinvestment of distribution..... 233 2,810 6,828 73,949
Shares redeemed .................................. (35,270) (431,240) (14,206) (147,647)
------- -------- ------- --------
Net increase ..................................... 72,380 $ 911,202 142,390 $1,515,669
====== ========= ======= ==========
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended October 1, 1993*
March March March through
31, 1997 31, 1996 31, 1995 March 31, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period .............. $11.22 $ 9.93 $10.46 $10.00
Income from investment operations:
Net investment income (loss) ................ (.01) .01 .36 (.01)
Net realized and unrealized gain (loss)
on investments ........................ .90 1.59 (.28) .47
--- ---- ---- ---
Total from investment operations................... .89 1.60 .08 .46
--- ---- --- ---
Less distributions:
From net investment income................... (.01) (0.31) (.02) -0-
From net capital gains ...................... -0- -0- (.59) -0-
- - ---- -
Total distributions................................ (.01) (0.31) (.61) -0-
---- ----- ---- -
Net asset value, end of period .................... $12.10 $11.22 $ 9.93 $10.46
====== ====== ====== ======
Total return ...................................... 7.92% 16.17% 0.97% 9.23%+
Ratios/supplemental data:
Net assets, end of period (millions)............... $ 4.4 $ 3.3 $ 1.5 $ 0.6
Ratio of expenses to average net assets:
Before expense reimbursement and waiver...... 4.09% 4.75% 8.69% 21.93%+
After expense reimbursement and waiver....... 1.50% 1.50% 1.50% 1.50%+
Ratio of net investment income (loss) to average net assets:
Before expense reimbursement and waiver...... (2.64%) (1.97%) (1.97%) (20.74%)+
After expense reimbursement and waiver....... (0.05%) 1.28% 5.22% 0.31%+
Portfolio turnover rate ........................... 51.13% 120.64% 705.88% 139.26%
Average commission rate paid per share++............ $.0548 - - -
<FN>
*Commencement of operations.
+Annualized.
++For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate paid per share for security trades on
which commissions are charged. This amount may vary from period to period and
fund to fund depending on the mix of trades executed in various markets where
trading practices and commission rate structures may differ.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
NOTES TO FINANCIAL STATEMENTS at March 31, 1997
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Pro-Conscience Women's Equity Mutual Fund (the "Fund") is a
diversified series of shares of beneficial interest of Professionally Managed
Portfolios (the "Trust"), which is registered under the Investment Company Act
of 1940 (the "1940 Act") as an open-end management investment company. The
Fund's primary investment objective is to provide long-term capital
appreciation. The Fund began operations on October 1, 1993.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.
A. Security Valuation. Investments in securities traded on a national
securities exchange or included in the NASDAQ National Market System
are valued at the last reported sale price at the close of regular
trading on the last business day of the period; securities traded on
an exchange or NASDAQ for which there have been no sales and other
over-the-counter securities are valued at their respective fair
values as determined in good faith by the Board of Trustees.
Short-term investments are stated at cost, which when combined with
accrued interest, approximates market value.
U.S. Government securities with less than 60 days remaining to
maturity when acquired by the Fund are valued on an amortized cost
basis. U.S. Government securities with more than 60 days remaining to
maturity are valued at the current market value (using the mean
between the bid and asked price) until the 60th day prior to
maturity, and are then valued at amortized cost based upon the value
on such date unless the Board determines during such 60 day period
that this amortized cost basis does not represent fair value.
B. Federal Income Taxes. The Fund intends 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 income tax provision is required. The
Fund maintains a January 31 tax year end.
C. Security Transactions, Dividends and Distributions. As is common in
the industry, security transactions are accounted for on the trade
date. Dividend income and distributions to shareholders are recorded
on the ex-dividend date. Interest income is recognized on an accrual
basis. Income and capital gains distributions are determined in
accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are
primarily due to differing treatments for net operating losses and
deferral of post-October capital losses.
D. 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 reported
amounts of assets and liabilities at the date of the financial
statements. Actual results could differ from those estimates.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
NOTES TO FINANCIAL STATEMENTS, Continued
- --------------------------------------------------------------------------------
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
For the year ended March 31, 1997, Pro-Conscience Funds, Incorporated (the
"Advisor") provided the Fund with investment management services under an
Investment Advisory Agreement. The Advisor furnishes all investment advice,
office space and certain administrative services, and provides most personnel
needed by the Fund. As compensation for its services, the Advisor is entitled to
a monthly fee at the annual rate of 1.00% based upon the average daily net
assets of the Fund. In order to maintain the Fund's operating expenses at 1.50%
of average daily net assets, the Advisor has waived its fee and reimbursed
expenses totaling $79,519 for the year ended March 31, 1997. United States Trust
Company of Boston (the"Sub-Advisor") acts as Sub-Advisor to the Fund and is
entitled to compensation for its services from the Advisor.
Investment Company Administration Corporation (the "Administrator") acts
as the Fund's Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Fund; prepares reports and materials to be supplied to the trustees;
monitors the activities of the Fund's custodian, transfer agent and accountants;
coordinates the preparation and payment of Fund expenses and reviews the Fund's
expense accruals. For its services, the Administrator receives a monthly fee at
the following annual rate:
Under $15 million $30,000
$15 to $50 million 0.20% of average net assets
$50 to $100 million 0.15% of average net assets
$100 to $150 million 0.10% of average net assets
Over $150 million 0.05% of average net assets
The Administrator voluntarily waived $22,603 of its fees during the year
ended March 31, 1997.
First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Fund's shares. The
Distributor is an affiliate of the Administrator.
Certain officers and trustees of the Trust are also officers and/or
directors of the Administrator and Distributor.
NOTE 4 - DISTRIBUTION COSTS
The Fund has adopted a Distribution Plan (the "Plan") in accordance with
Rule 12b-1 under the 1940 Act. The Plan provides that the Fund may pay a fee to
the Advisor as Distribution Coordinator at an annual rate of up to 0.25% of the
average daily net assets of the Fund. The fee is paid to the Advisor as
reimbursement for, or in anticipation of, expenses incurred for
distribution-related activity. For the year ended March 31, 1997, the Fund paid
fees of $9,811 to the Advisor.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
NOTES TO FINANCIAL STATEMENTS, Continued
- --------------------------------------------------------------------------------
NOTE 5 - PURCHASES AND SALES OF SECURITIES
The cost of purchases and the proceeds from sales of securities, other
than short-term investments, for the year ended March 31, 1997 were $2,850,975
and $1,879,746, respectively.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS OF
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND and
THE BOARD OF TRUSTEES OF
PROFESSIONALLY MANAGED PORTFOLIOS
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of Pro-Conscience Women's Equity Mutual
Fund (a series of Professionally Managed Portfolios) as of March 31, 1997, and
the related statement 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 three years in the period then ended and
for the period from October 1, 1993 (commencement of operations) to March 31,
1994. 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 audit.
We conducted our audit 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 March
31, 1997, 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 audit provides 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
Pro-Conscience Women's Equity Mutual Fund as of March 31, 1997, 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 three years in the period then ended and for the period October 1, 1993
(commencement of operations) to March 31, 1994, in conformity with generally
accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
April 17, 1997
<PAGE>
Advisor
Pro-Conscience Funds, Incorporated
850 Montgomery Street, Suite 100
San Francisco, California 94133
(415) 296-9135
--
Distributor
First Fund Distributors, Inc.
4455 E. Camelback Road, Suite 261E
Phoenix, Arizona 85018
--
Custodian
Star Bank, N.A.
425 Walnut Street
Cincinnati, Ohio 45202
--
Transfer Agent
American Data Services, Inc.
24 West Carver Street
Second Floor
Huntington, New York 11743
--
Auditors
Tait, Weller & Baker
Two Penn Center Plaza, Suite 700
Philadelphia, Pennsylvania 19102
--
Legal Counsel
Heller, Ehrman, White & McAuliffe
333 Bush Street
San Francisco, California 94104
This report is intended for shareholders of the Fund and may not be used as
sales literature unless preceded or accompanied by a current prospectus.
Past performance results shown in this report should not be considered a
representation of future performance. Share price and returns will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. Statements and other information herein are dated and
are subject to change.
