DUNCAN-HURST
LARGE CAP
GROWTH-20
FUND
AGGRESSIVE
GROWTH
FUND
INTERNATIONAL
GROWTH
FUND
Semi-Annual Report
September 30, 1999
www.duncan-hurst.com
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
Dear Shareholders,
As Chairman of the Duncan-Hurst Mutual Funds and a fellow shareholder in the
funds, I'd like to take this opportunity to welcome you to the Duncan-Hurst
Family of Funds. I am pleased to provide you with the first Semi-Annual Report
which contains financial statements for the six months ending September 30,
1999. In the following you will find our market commentary and portfolio
holdings.
I am happy to report to the shareholders that the retail class investment
returns for the six month period ended September 30, 1999 were 17.0% for the
Aggressive Growth Fund and 1.4% for the Large Cap Growth-20 Fund. The
International Growth Fund's retail class investment return for the period July
1, 1999 through September 30, 1999 was 8.2%. Both the Aggressive Growth Fund and
Large Cap-20 Fund ranked in the top ten of their asset category by Charles
Schwab for the three month period ended September 30, 1999.
Visit our web site at WWW.DUNCAN-HURST.COM for regular updates on the funds and
market commentaries. Our web site also offers you the ability to view account
balances and fund transactions at your convenience.
I would also like to take this opportunity to inform you of the latest addition
to our fund family, the DUNCAN-HURST TECHNOLOGY FUND*. This fund was launched on
October 1, 1999. The fund seeks to achieve long-term capital growth through
identifying companies we believe will benefit from advances or improvements in
technology. Investments may include companies in the following industries:
internet-related, computer software, computer hardware, networking,
semiconductor or telecommunication.
As a new mutual fund manager, we are very interested and appreciative of your
feedback. If you have encountered any problems or have suggestions to improve
our service, please call us or email your comments to [email protected].
Thank you for your investment in Duncan-Hurst Mutual Funds. We appreciate the
opportunity to meet your investment needs.
Sincerely,
/s/ William H. Duncan, Jr.
William H. Duncan, Jr.
Chairman
* FOR MORE INFORMATION OR A PROSPECTUS ON THE TECHNOLOGY FUND, PLEASE VISIT OUR
WEB SITE AT WWW.DUNCAN-HURST.COM OR CALL 800-558-9105. PLEASE READ THE
PROSPECTUS CAREFULLY BEFORE INVESTING.
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DUNCAN-HURST INTERNATIONAL GROWTH FUND
U.S. MARKET: FOCUSED ON ECONOMIC GROWTH AND INFLATION FEARS
The U.S. stock market continued to be keenly focused on the steady stream of
economic data and its potential relevance to inflationary expectations and
Federal Reserve actions. The Federal Reserve raised the Fed Fund rate, in June
and again in August, on concerns of increasing asset prices and inflationary
pressures. While evidence of inflation has mostly been absent, the bond market's
decline caused interest rates to rise in the quarter.
Of particular note was the activity in the price of gold, which is considered a
harbinger of future potential inflationary pressures. During the third quarter,
the price of gold rose approximately 25%. While still relatively low-priced by
historical standards, the sharp increase in the price of gold does warrant
investor attention as a leading indicator of future inflation. However, gold's
recent weakness has been at least partially attributable to ongoing central bank
selling.
Despite the market's negative returns across the major indices in the third
quarter, the technology sector provided investors with positive performance.
This enabled Duncan-Hurst to deliver positive returns in all products due to our
overweight position in technology. Several themes are currently driving the
growth in technology, such as the insatiable demand for bandwidth, the explosion
of the Internet as a medium of commerce and the necessary infrastructure to
support this, and the growth in wireless data and telecommunication services.
ASIA/PACIFIC: FULL-FLEDGED RECOVERY
Loose monetary and fiscal policies powered an Asian economic acceleration that
began a year ago. The speed and magnitude of this growth surprised many
investors. As a result, capital flows returned and equity markets across the
region have significantly appreciated. The combination of the economic strength
and the capital flows has powered the Yen up 14% for the quarter and 7% for the
year vs. U.S. Dollar. However, during the third quarter inflation concerns
surfaced worldwide as oil, gold and commodity prices rapidly increased and the
U.S. Federal Reserve raised rates. As a result many of these Pacific Rim
countries will likely underperform due to the increased rate pressure and a
deceleration in economic growth from near all time highs.
Unlike its neighbors, Japan still has room for accelerating growth as: 1) Japan
is not at its historical peak range in its year-over-year economic cycle; 2)
deflation is more of a problem in Japan than inflation; 3) the Bank of Japan is
committed to leaving short-term interest rates near zero levels to ensure its
economic recovery; and 4) a new fiscal spending package will soon be
implemented.
EUROPEAN REGION: MAY REBOUND IN FOURTH QUARTER
Most European economies have not shown any acceleration in their economic cycles
since their 1998 peaks. As a result, currency and equity markets have suffered
with Europe ex-UK at 2% and the UK down 0.5% for the quarter. If it were not for
the incredible number of mergers and acquisitions occurring as corporations
restructure to compete globally, Europe's equity markets would have fared even
worse. Fiscal, tax and labor policies necessary for sustainable growth have not
yet been fully implemented. (Although it is encouraging to witness the German
government implement these austere measures even as they suffer severe regional
election losses for it.) The many short-term interest rate cuts by the European
Central Bank over the past year did not result in stronger economic growth
reports in the third quarter but may in the fourth quarter as some indicators
are signaling a rebound. The risk facing Europe is that their central banks may
increase interest rates too much, choking off any economic recovery.
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
WILLIAM H. "BEAU" DUNCAN, JR.
PORTFOLIO MANAGER
FUND OBJECTIVE & STRATEGY:
The Aggressive Growth Fund seeks to provide long-term capital growth through
investment in stocks of medium-capitalization companies. In the management of
the Funds, the same investment philosophy is applied that William H. Duncan, Jr.
has used since 1985. The adviser seeks to identify companies with accelerating
earnings growth and positive company fundamentals. Though the process is
primarily based upon this bottom-up process, a top-down analysis is conducted to
identify outperforming and underperforming sectors.
MARKET REVIEW:
In general, mid-cap stocks as a group lost ground in the third quarter, but
still managed to outperform both small-cap and large-cap stocks. Over the same
timeframe, mid-cap growth stocks modestly outperformed mid-cap value stocks.
Meanwhile, Duncan-Hurst's Aggressive Growth Fund significantly outperformed its
benchmark, the Russell Midcap Growth, for the last six months.
The portfolio's robust outperformance in the third quarter was largely due to
the continued success of the telecommunications sector and the powerful
resurgence of the semiconductor group. Our belief in the insatiable demand for
increased bandwidth and incremental capacity build-out led us to bolster our
position in both telecom equipment and services. The further acceleration of
certain rebounding global economies, and more specifically, pent-up Asian
demand, encouraged us to add to our semiconductor holdings as well. The
increased exposure to these respective areas, coupled with their subsequent
robust appreciation, significantly increased our weightings in each of the
groups.
We are encouraged by the recent and sustained outperformance of mid-cap growth
stocks over large-cap stocks and feel that the necessary fundamentals are in
place to continue this trend. Also, relative valuations of small-/mid-cap growth
stocks remain below those of the S&P 500, and we believe that earnings growth
for the mid-cap growth stocks should only improve going forward.
2
<PAGE>
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DAVID C. MAGEE
PORTFOLIO MANAGER
FUND OBJECTIVE & STRATEGY:
The Large Cap Growth-20 Fund seeks to provide long-term capital growth primarily
through investment in 20-30 larger capitalization growth companies. The adviser
seeks to identify companies with accelerating earnings growth and positive
company fundamentals. Though the process is primarily based upon this bottom-up
process, a top-down analysis is conducted to identify outperforming and
underperforming sectors.
MARKET REVIEW:
Growth opportunities for large-cap companies continue to expand at astonishing
rates. Technology companies, especially those in telecommunications and
networking, are the current and perhaps most obvious beneficiaries. Huge volumes
of electronic data are creating insatiable demand for data storage and data
access. These are the "new" economy stocks and it has been their performance in
the stock market that has extended, albeit narrowly, the greatest U. S. bull
market in history. As a result we continued to heavily weight technology stocks
in the portfolio.
Biotechnology and major pharmaceutical companies could one-day rival technology
as the stars of the stock market. They are employing new computer enhanced
research instruments to rapidly accelerate the molecular analyses of genetic
disease "targets". These tools are speeding, by several orders of magnitude, the
pace of discovery and development of drug therapies. This efficiency drives cost
out of the system, boosts productivity and encourages further research
investment. Research and development spending in drug therapeutics is believed
to have boomed to $21 billion in 1998. As new compounds leave the labs and
clinics, very large, broad markets await.
3
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
VINCENT A. WILLYARD
PORTFOLIO MANAGER
FUND OBJECTIVE & STRATEGY:
The International Growth Fund seeks to provide long-term capital growth through
investment in stocks of non-U. S. companies. The adviser seeks to identify
companies with accelerating earnings growth and positive company fundamentals in
the top performing foreign countries. The Adviser's stock selection process
begins with analysis of country economic fundamentals to identify the most
attractive countries for investment. The Adviser then selects the companies
whose earnings are expected to grow at an above-average rate in the identified
top performing countries
MARKET REVIEW:
The Duncan-Hurst International Growth Fund outperformed its benchmark MSCI EAFE
in the third quarter. The top-down portion of our investment process continued
to support our overweight position in Japan, which benefited the fund as the Yen
appreciated strongly versus the U.S. Dollar (14% for the quarter). Our bottom-up
stock selection also contributed to our outperformance focusing on the more
economically sensitive, smaller capitalization Japanese companies. The fund's
largest sector weightings (technology, consumer services and retail) are in the
areas of the world experiencing the greatest growth.
Entering the fourth quarter, the portfolio has an overweight position in
Asia/Pacific vs. EAFE. Although the economic fundamentals in Japan have
continued to strengthen (e.g. second quarter GDP growth came in much higher than
expected), the top-down portion of our process is signaling a deceleration in
the other Pacific Rim countries. Europe is beginning to show signs of an
economic acceleration and if it proves to be sustainable we may move to an
overweight position in the strongest European countries.
4
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 96.7% Value
- --------------------------------------------------------------------------------
AUDIO/VIDEO PRODUCTS: 2.7%
1,157 Gemstar International Group Ltd.*..................... $ 90,391
470 Harmonic, Inc.*....................................... 61,482
-----------
151,873
-----------
BIOLOGICAL RESEARCH: 1.9%
1,340 Biogen, Inc.*......................................... 105,609
-----------
CASINO/HOTELS: 1.3%
1,426 MGM Grand, Inc.*...................................... 72,993
-----------
COMPUTER NETWORKING: 2.7%
3,546 Adaptec, Inc.*........................................ 140,732
50 Foundry Networks, Inc.*............................... 6,300
-----------
147,032
-----------
COMPUTER SERVICES: 1.0%
380 Ariba, Inc.*.......................................... 54,910
-----------
COMPUTER SOFTWARE: 12.7%
1,787 Adobe Systems, Inc.................................... 202,825
1,060 Broadvision, Inc.*.................................... 141,046
510 Check Point Software Technologies, Ltd.*.............. 43,063
340 Infosys Technologies - ADR............................ 48,620
2,330 Mercury Interactive Corp.*............................ 150,431
1,780 Siebel Systems, Inc.*................................. 118,593
-----------
704,578
-----------
GAS & ELECTRIC UTILITIES: 3.1%
2,030 Calpine Corp.*........................................ 172,677
-----------
HEALTH CARE: 1.3%
1,472 Medical Manager Corp.*................................ 73,232
-----------
See accompanying Notes to Financial Statements.
5
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
INTERNET CONTENT: 2.2%
1,635 Careinsite, Inc.*..................................... $ 82,772
400 Internet Capital Group, Inc.*......................... 35,150
150 NetZero, Inc.*........................................ 3,900
-----------
121,822
-----------
INTERNET SOFTWARE: 4.3%
2,582 Exodus Communications, Inc.*.......................... 186,065
250 Internap Network Services Corp.*...................... 11,156
690 Scient Corp.*......................................... 44,160
-----------
241,381
-----------
MEDIA: 3.6%
2,005 Hispanic Broadcasting Corp.*.......................... 152,631
610 Univision Communications, Inc.*....................... 49,639
-----------
202,270
-----------
MEDICAL PRODUCTS: 4.3%
940 Minimed, Inc.*........................................ 92,355
1,844 VISX, Inc.*........................................... 145,849
-----------
238,204
-----------
MEDICAL RESEARCH: 0.8%
660 Gilead Sciences, Inc.*................................ 42,364
-----------
OILS & GAS PRODUCERS: 1.4%
1,730 Apache Corp........................................... 74,714
-----------
OIL & GAS SERVICES: 2.8%
1,300 BJ Services Co.*...................................... 41,356
1,590 Ensco International, Inc.............................. 28,719
5,099 Global Marine, Inc.*.................................. 83,815
-----------
153,890
-----------
PHARMACEUTICAL: 5.8%
1,110 Allergan, Inc......................................... 122,100
2,000 Medimmune, Inc.*...................................... 199,313
-----------
321,413
-----------
See accompanying Notes to Financial Statements.
6
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
PRINTER MANUFACTURING: 6.0%
2,577 Electronics for Imaging*.............................. $ 132,474
2,490 Lexmark International Group, Inc.*.................... 200,445
-----------
332,919
-----------
RETAIL: 4.5%
4,144 Tiffany & Co.......................................... 248,381
-----------
SATELLITE TELECOMMUNICATIONS: 3.3%
1,998 EchoStar Communications Corp.*........................ 181,443
-----------
SEMICONDUCTORS: 14.4%
1,072 Analog Devices, Inc.*................................. 54,940
770 Applied Micro Circuits Corp.*......................... 43,890
2,595 Atmel Corp.*.......................................... 87,743
1,709 Conexant Systems, Inc.*............................... 124,170
820 Lam Research Corp.*................................... 50,020
3,232 LSI Logic Corp.*...................................... 166,447
660 PMC-Sierra, Inc.*..................................... 61,050
626 QLogic Corp.*......................................... 43,742
1,985 Vitesse Semiconductor Corp.*.......................... 169,469
-----------
801,471
-----------
TELECOMMUNICATIONS: 14.8%
1,960 Allegiance Telecom, Inc.*............................. 103,145
960 Comverse Technology, Inc.*............................ 90,540
4,680 NEXTLINK Communications, Inc.*........................ 242,628
1,840 Scientific-Atlanta, Inc............................... 91,195
1,640 Teligent, Inc.*....................................... 81,488
3,420 Voicestream Wireless Corp.*........................... 211,078
-----------
820,074
-----------
WIRELESS COMMUNICATION EQUIPMENT: 1.8%
2,238 RF Micro Devices, Inc.*............................... 102,389
-----------
Total Common Stocks (cost $4,614,017)................. 5,365,639
-----------
See accompanying Notes to Financial Statements.
7
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
Principal
Amount SHORT-TERM INVESTMENTS: 3.0% Value
- --------------------------------------------------------------------------------
$169,202 UMB Money Market Fiduciary (cost $169,202)............ $ 169,202
-----------
Total Investments (cost $4,783,219): 99.7%............ 5,534,841
Other Assets less Liabilities: 0.3%................... 17,682
-----------
NET ASSETS: 100.0%.................................... $ 5,552,523
===========
* Non-income producing security.
See accompanying Notes to Financial Statements.
8
<PAGE>
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 95.7% Value
- --------------------------------------------------------------------------------
ADVERTISING: 2.7%
190 Omnicom Group, Inc.................................... $ 15,046
-----------
BIOLOGICAL RESEARCH: 5.5%
200 Biogen, Inc.*......................................... 15,762
101 Genentech, Inc.*...................................... 14,778
-----------
30,540
-----------
COMPUTER NETWORKING: 11.9%
482 Cisco Systems, Inc.*.................................. 33,047
52 Juniper Networks, Inc.*............................... 9,516
259 Sun Microsystems, Inc.*............................... 24,087
-----------
66,650
-----------
COMPUTER SOFTWARE: 3.5%
215 Microsoft Corp.*...................................... 19,471
-----------
COMPUTER STORAGE DEVICES: 7.3%
267 EMC Corp.*............................................ 19,074
286 Veritas Software Corp.*............................... 21,718
-----------
40,792
-----------
DIVERSIFIED MANUFACTURING: 3.8%
207 Tyco International, Ltd............................... 21,373
-----------
ELECTRONIC COMPONENTS: 9.4%
370 Solectron Corp.*...................................... 26,571
320 Texas Instruments, Inc................................ 26,320
-----------
52,891
-----------
MEDIA: 7.6%
511 AT&T Corp - Liberty Media*............................ 18,971
298 Clear Channel Communications, Inc.*................... 23,803
-----------
42,774
-----------
PRINTER MANUFACTURING: 3.0%
212 Lexmark International Group, Inc.*.................... 17,066
-----------
See accompanying Notes to Financial Statements.
9
<PAGE>
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
RETAIL: 3.6%
175 Home Depot, Inc....................................... $ 12,009
124 Kohls Corp.*.......................................... 8,199
-----------
20,208
-----------
SCIENTIFIC INSTRUMENT MANUFACTURING: 2.4%
189 PE Corp. - PE Biosystems Group........................ 13,655
-----------
SEMICONDUCTORS: 14.2%
118 Broadcom Corp.*....................................... 12,862
202 Intel Corp............................................ 15,011
168 Linear Technology Corp................................ 9,875
310 STMicroelectronics N.V................................ 22,940
289 Xilinx, Inc.*......................................... 18,939
-----------
79,627
-----------
TELECOMMUNICATIONS EQUIPMENT: 13.0%
264 JDS Uniphase Corp.*................................... 30,047
263 Lucent Technologies, Inc.............................. 17,062
217 Nokia Corp. - Sponsored ADR........................... 19,489
33 Qualcomm, Inc.*....................................... 6,243
-----------
72,841
-----------
WIRELESS COMMUNICATIONS EQUIPMENT: 7.8%
157 Motorola, Inc......................................... 13,816
399 Sprint Corp. (PCS Group)*............................. 29,750
-----------
43,566
-----------
TOTAL COMMON STOCKS (cost $481,075)................... 536,500
-----------
Principal
Amount SHORT-TERM INVESTMENTS: 3.5%
- --------------------------------------------------------------------------------
$19,336 UMB Money Market Fiduciary (cost $19,336)............. 19,336
-----------
Total Investments (cost $500,411): 99.2%.............. 555,836
Other Assets less Liabilities: 0.8%................... 4,388
-----------
NET ASSETS: 100.0%.................................... $ 560,224
===========
* Non-income producing security.
See accompanying Notes to Financial Statements.
10
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 97.4% Value
- --------------------------------------------------------------------------------
AUSTRALIA: 0.4%
7,400 Compushare, Ltd....................................... $ 88,897
-----------
CANADA: 3.9%
12,650 Canfor Corp.*......................................... 97,275
8,250 Cominco, Ltd.......................................... 134,741
6,590 Crestar Energy, Inc.*................................. 95,969
4,135 Ensign Resource Service Group, Inc.................... 91,311
5,910 Falconbridge, Ltd..................................... 86,268
4,600 Inco, Ltd............................................. 98,325
13,960 Nexfor, Inc........................................... 83,124
1,250 QLT PhotoTherapeutics, Inc.*.......................... 95,271
-----------
782,284
-----------
DENMARK: 1.1%
820 Vestas Wind Systems A/S*.............................. 113,951
3,290 Navision Software A/S*................................ 105,579
-----------
219,530
-----------
FINLAND: 5.0%
2,660 Nokia Oyj............................................. 238,247
3,360 Nokia Oyj - ADR....................................... 301,770
15,110 Outokumpu Oyj......................................... 175,565
21,810 Stora Enso Oyj........................................ 289,184
-----------
1,004,766
-----------
FRANCE: 3.1%
330 Bouygues SA........................................... 104,662
1,750 Coflexip SA - ADR..................................... 83,563
5,790 STMicroelectronics N.V................................ 428,460
-----------
616,685
-----------
GERMANY: 5.7%
8,900 EM. TV & Merchandising AG............................. 382,457
2,065 Intershop Communications AG*.......................... 213,963
1,760 Kamps AG.............................................. 109,652
2,475 Kinowelt Medien AG*................................... 138,120
See accompanying Notes to Financial Statements.
11
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
GERMANY, CONTINUED
1,210 Mannesmann AG......................................... $ 194,612
2,750 SAP AG (Systeme, Anwendungen,
Produkte in der Datenverarbeitung) - ADR.......... 103,813
-----------
1,142,617
-----------
GREECE: 2.7%
1,600 Alpha Credit Bank S.A................................. 128,355
2,300 Bank of Piraeus....................................... 66,312
15,010 J. Boutaris & Son Holdings S.A.*...................... 238,004
4,480 Papoutsanis S.A.*..................................... 122,324
-----------
554,995
-----------
HONG KONG: 2.8%
39,500 Asia Satellite Telecommunications Holdings, Ltd....... 100,685
5,000 Cheung Kong (Holdings), Ltd........................... 41,678
2,775 China.com Corp.*...................................... 180,375
126,000 Giordano International, Ltd........................... 99,758
77,000 Kerry Properties, Ltd................................. 81,284
8,000 Sun Hung Kai Properties, Ltd.......................... 61,021
-----------
564,801
-----------
ITALY: 3.1%
5,750 Mondadori (Arnoldo) Editore SpA....................... 100,430
27,060 Buffetti SpA.......................................... 217,871
117,380 CIR-Compagnie Industriali Riunite SpA................. 199,390
5,400 Gruppo Editoriale L'Espresso.......................... 100,643
-----------
618,334
-----------
JAPAN: 41.8%
1,675 Aiful Corp............................................ 285,538
2,710 Aruze Corp............................................ 226,533
250 Bellsystem 24, Inc.................................... 167,888
890 Benesse Corp.......................................... 177,131
425 C TWO-NETWORK Co., Ltd................................ 111,769
1,300 Don Quijote Co., Ltd.................................. 233,333
2,900 Enix Corp............................................. 271,560
1,700 Fuji Soft ABC, Inc.................................... 144,820
1,648 FUJITSU SUPPORT AND SERVICE, INC. (FSAS).............. 469,000
See accompanying Notes to Financial Statements.
12
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
JAPAN, CONTINUED
920 Hikari Tsushin, Inc................................... $ 561,661
9,100 Hitachi, Ltd.......................................... 100,855
4,019 Kojima Co., Ltd....................................... 217,427
4,600 K'S DENKI CORP........................................ 135,231
14,082 Kokusai Electric Co., Ltd............................. 185,564
1 MASTERNET CO., LTD.*.................................. 82,652
3,630 Matsushita Communication Industrial Co., Ltd.......... 404,015
57,590 The Mitsui Trust & Banking Co., Ltd................... 117,917
5,190 NEC Corp.............................................. 104,560
8,368 Nihon Unisys, Ltd..................................... 310,450
717 Otsuka Kagu........................................... 208,763
1,180 Ryohin Keikaku Co., Ltd............................... 238,283
7,700 Sailor Pen Co., Ltd................................... 127,285
5,120 SAIZERIYA CO., LTD.................................... 322,194
20,900 The Sakura Bank, Ltd.................................. 157,040
6,365 Sharp Corp............................................ 101,988
1,614 SOFTBANK CORP......................................... 613,947
3,900 Sumisho Computer Systems Corp......................... 223,443
8,900 The Sumitomo Bank, Ltd................................ 133,747
3,600 Takasago Electric Industry Co......................... 284,024
2,400 TDC SOFTWARE ENGINEERING, Inc......................... 119,470
3,220 Tokyo Electron, Ltd................................... 279,750
10,000 Toyo Information Systems Co., Ltd..................... 476,190
30,450 The Toyo Trust & Banking Co., Ltd..................... 151,006
1,900 UNION TOOL CO......................................... 184,700
607 WORLD CO., LTD........................................ 65,449
5,420 Yamada Denki Co., Ltd................................. 416,923
-----------
8,412,106
-----------
KOREA: 4.3%
18,450 Comtec System Co., Ltd................................ 144,081
4,330 Changwon Carburetor Industrial Co., Ltd............... 123,867
14,500 Daou Technology, Inc.*................................ 188,327
1,300 Korea Telecom Corp. - ADR*............................ 48,100
3,220 LG Electronics........................................ 107,995
3,856 Trigem Computer, Inc.................................. 264,674
-----------
877,044
-----------
See accompanying Notes to Financial Statements.
13
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
LUXEMBOURG: 0.5%
2,650 SBS Broadcasting SA*.................................. $ 102,688
-----------
NETHERLANDS: 2.7%
6,140 Baan Co. N.V.*........................................ 89,030
3,220 CMG plc............................................... 109,223
1,900 Equant*............................................... 154,613
1,940 Getronics NV.......................................... 104,648
1,700 United Pan-Europe Communications N.V. - ADR*.......... 103,700
-----------
561,214
-----------
NORWAY: 2.0%
9,180 Merkantildata ASA..................................... 94,139
7,490 Petroleum Geo-Services ASA (PGS) - ADR*............... 142,778
14,600 Tandberg Television ASA*.............................. 161,961
-----------
398,878
-----------
SINGAPORE: 3.7%
52,000 Datacraft Asia, Ltd................................... 228,800
39,200 Natsteel Electronics, Ltd............................. 146,380
102,000 Neptune Orient Lines, Ltd.*........................... 122,364
94,000 Teledata (Singapore), Ltd.*........................... 29,297
25,300 Venture Manufacturing (Singapore), Ltd................ 220,194
-----------
747,035
-----------
SWEDEN: 2.0%
2,880 Framtidsfabriken AB*.................................. 99,771
3,650 Icon Medialab International AB*....................... 204,806
102,390 Rottneros AB.......................................... 94,921
-----------
399,498
-----------
SWITZERLAND: 2.1%
85 ESEC Holding AG*...................................... 111,305
570 Logitech International S.A.*.......................... 92,683
600 Micronas Semiconductor Holding AG*.................... 107,757
290 SEZ Holding AG........................................ 106,677
-----------
418,422
-----------
See accompanying Notes to Financial Statements.
14
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
UNITED KINGDOM: 10.0%
15,800 Arm Holdings Plc*..................................... $ 246,549
3,020 British Steel Plc - ADR*.............................. 77,765
9,805 Colt Telecom Group Plc*............................... 233,175
8,700 Flextech Plc*......................................... 136,045
7,900 Logica Plc............................................ 104,474
10,050 Lonmin Plc............................................ 105,929
5,830 Orange Plc*........................................... 114,641
96,920 Pace Micro Technology Plc............................. 324,024
4,600 Photo-Me International Plc............................ 98,485
3,350 Shire Pharaceuticals Group Plc - ADR*................. 96,522
2,280 The Sage Group Plc.................................... 102,397
900 Vodafone AirTouch Plc - ADR........................... 213,975
6,750 Vodafone AirTouch Plc................................. 159,856
-----------
2,013,837
-----------
UNITED STATES: 0.5%
3,800 MIH, Ltd.*............................................ 109,725
-----------
TOTAL COMMON STOCKS (cost $18,474,184)................ 19,633,356
-----------
Principal
Amount SHORT-TERM INVESTMENTS: 3.2%
- --------------------------------------------------------------------------------
$637,140 UMB Money Market Fiduciary (cost $637,140)............ 637,140
-----------
Total Investments (cost $19,111,324): 100.6%.......... 20,270,496
Liabilities, less Other Assets: (0.6%)................ (123,239)
-----------
NET ASSETS: 100.0%.................................... $20,147,257
===========
* Non-income producing security.
See accompanying Notes to Financial Statements.
15
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS BY INDUSTRY AT SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
% of Net Assets
- --------------------------------------------------------------------------------
Apparel.......................................................... 0.3
Banking.......................................................... 3.7
Cellular Telecommunications...................................... 2.4
Commercial Services.............................................. 4.1
Computer Manufacturing........................................... 1.3
Computer Networking.............................................. 1.5
Computer Peripherals............................................. 0.5
Computer Services................................................ 5.9
Computer Software................................................ 8.3
Construction..................................................... 0.5
Electronic Equipment............................................. 5.6
Finance.......................................................... 1.4
Foods............................................................ 1.1
Forestry/Paper Products.......................................... 2.8
Internet Content................................................. 4.4
Internet Software................................................ 1.5
Investment Companies............................................. 1.0
Media............................................................ 5.2
Medical Products................................................. 0.5
Metal Manufacturing.............................................. 1.3
Mining........................................................... 2.1
Miscellaneous Manufacturing...................................... 7.3
Office Supplies.................................................. 0.6
Oil & Gas Producers.............................................. 0.9
Oil & Gas Services............................................... 1.1
Pharmaceuticals.................................................. 0.5
Photo Equipment/Supplies......................................... 0.5
Power Conversion/Supply Equipment................................ 0.6
Real Estate...................................................... 0.9
Retail........................................................... 10.4
Satellite Telecommunications..................................... 0.5
Semiconductors................................................... 5.8
Telecommunications............................................... 4.8
Telecommunications Equipment..................................... 6.6
Transportation................................................... 0.6
Wireless Equipment............................................... 0.9
------
TOTAL INVESTMENTS IN SECURITIES.................................. 97.4
SHORT-TERM INVESTMENTS........................................... 3.2
LIABILITIES LESS OTHER ASSETS.................................... (0.6)
------
NET ASSETS....................................................... 100.0%
======
See accompanying Notes to Financial Statements.
16
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DUNCAN-HURST INTERNATIONAL GROWTH FUND
STATEMENTS OF ASSETS AND LIABILITIES AT SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Aggressive Large Cap International
Growth Fund Growth-20 Fund Growth Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value (cost $4,783,219,
$500,411, and $19,111,324, respectivly).................. $5,534,841 $555,836 $20,270,496
Cash....................................................... 0 0 97,017
Foreign currency........................................... 0 0 1,261
Receivables:
Dividends and interest................................... 1,094 138 14,371
Investment securities sold............................... 42,614 0 0
Due from Advisor......................................... 17,079 30,514 0
Other assets............................................... 103 0 28,462
---------- -------- -----------
Total assets............................................. 5,595,731 $586,488 $20,411,607
---------- -------- -----------
LIABILITIES
Payables:
Administration fee....................................... 0 2,466 9,959
Distribution fees........................................ 3,140 331 178
Funds advanced by custodian.............................. 2,466 2,466 0
Investment securities purchased.......................... 17,779 0 198,461
Accrued expenses........................................... 19,823 21,001 55,752
---------- -------- -----------
Total liabilities........................................ 43,208 26,264 264,350
---------- -------- -----------
NET ASSETS................................................... $5,552,523 $560,224 $20,147,257
========== ======== ===========
COMPONENTS OF NET ASSETS
Paid-in capital............................................ $4,969,192 $539,575 $19,189,463
Accumulated net investment loss............................ (18,728) (2,418) (24,663)
Undistributed net realized loss on investments
and foreign currency..................................... (149,563) (32,359) (175,083)
Net unrealized appreciation on investments and
foreign currency......................................... 751,622 55,426 1,157,540
---------- -------- -----------
Net assets............................................... $5,552,523 $560,224 $20,147,257
========== ======== ===========
CLASS R - Shares of beneficial interest outstanding,
unlimited authorization (Net assets $5,552,523/474,619,
$560,224/ 55,273 and $1,005,244/92,916, respectively).... $ 11.70 $ 10.14 $ 10.82
========== ======== ===========
CLASS I - Shares of beneficial interest outstanding,
unlimited authorization (Net Assets $0, $0, and
$19,142,013/1,778,299, respectively)..................... N/A N/A $ 10.76
========== ======== ===========
</TABLE>
See accompanying Notes to Financial Statements.
17
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DUNCAN-HURST INTERNATIONAL GROWTH FUND
STATEMENTS OF OPERATIONS - FOR THE PERIODS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
Aggressive Large Cap International
Growth Fund* Growth-20 Fund* Growth Fund**
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends............................................ $ 1,009 $ 226 $ 13,904
Interest............................................. 3,168 472 11,932
Other ............................................... 0 0 36
--------- -------- ---------
Total income....................................... 4,177 698 25,872
--------- -------- ---------
Expenses
Advisory fees ....................................... 14,718 1,902 42,188
Distribution fees, Class R........................... 3,679 476 178
Administration fees ................................. 15,041 15,041 15,055
Custody fees......................................... 3,911 3,911 8,363
Fund accounting fees................................. 10,027 10,027 20,073
Transfer agent fees.................................. 19,854 19,854 14,252
Audit fees........................................... 7,020 7,020 4,683
Reports to shareholders.............................. 1,755 1,755 2,007
Registration fees.................................... 0 0 8,363
Trustees' fees....................................... 2,006 2,006 1,338
Legal fees........................................... 2,006 2,006 2,007
Miscellaneous fees................................... 2,004 2,003 2,007
Insurance fees....................................... 0 0 670
--------- -------- ---------
Total expenses..................................... 82,021 66,001 121,184
Expenses reimbursed/waived......................... (59,116) (62,885) (70,649)
--------- -------- ---------
Net Expenses....................................... 22,905 3,116 50,535
--------- -------- ---------
Net investment loss.............................. (18,728) (2,418) (24,663)
--------- -------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss from security transactions and
foreign currency..................................... (149,563) (32,359) (175,083)
Net unrealized appreciation on investments and
foreign currency..................................... 751,622 55,426 1,157,540
--------- -------- ---------
Net realized and unrealized gain on investments
and foreign currency................................ 602,059 23,067 982,457
--------- -------- ---------
Net increase in net assets resulting
from operations................................ $ 583,331 $ 20,649 $ 957,794
========= ======== =========
</TABLE>
* Commenced operations on March 31, 1999.
** Commenced operations on June 30, 1999.
See accompanying Notes to Financial Statements.
18
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DUNCAN-HURST INTERNATIONAL GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Aggressive Large Cap International
Growth Fund* Growth-20 Fund* Growth Fund**
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss..................................... $ (18,728) $ (2,418) $ (24,663)
Net realized loss from security transactions............ (149,563) (32,359) (175,083)
Net unrealized appreciation on investments.............. 751,622 55,426 1,157,540
---------- -------- -----------
Net increase in net assets resulting
from operations..................................... 583,331 20,649 957,794
---------- -------- -----------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold
Class R............................................... 4,991,733 552,721 1,013,020
Class I............................................... -- -- 18,200,050
---------- -------- -----------
Cost of shares redeemed
Class R............................................... (22,541) (13,146) (23,607)
Class I............................................... -- -- --
---------- -------- -----------
Net increase in net assets derived from net change
in outstanding shares (a)............................. 4,969,192 539,575 19,189,463
---------- -------- -----------
Total increase in net assets........................ 5,552,523 560,224 20,147,257
---------- -------- -----------
NET ASSETS
Beginning of period....................................... -- -- --
---------- -------- -----------
End of period............................................. $5,552,523 $560,224 $20,147,257
========== ======== ===========
(a) A summary of capital share transactions is
as follows:
CLASS R SHARES
Shares sold............................................. 476,538 56,564 94,900
Shares redeemed......................................... (1,919) (1,291) (1,984)
---------- -------- -----------
Net increase............................................ 474,619 55,273 92,916
========== ======== ===========
CLASS I SHARES
Shares sold............................................. -- -- 1,778,299
---------- -------- -----------
Net increase............................................ -- -- 1,778,299
========== ======== ===========
</TABLE>
* Commenced operations on March 31, 1999.
** Commenced operations on June 30, 1999.
See accompanying Notes to Financial Statements.
19
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DUNCAN-HURST INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIODS (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
Aggressive Large Cap International
Growth Fund Growth-20 Fund Growth Fund
- ----------------------------------------------------------------------------------------------------
Six Months Six Months June 30, 1999
Ended Ended through
Sept. 30, 1999 Sept. 30, 1999 Sept. 30, 1999
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS R
Net asset value, beginning of period............... $10.00 $10.00 $10.00
------ ------ ------
Income from investment operations:
Net investment loss............................... (0.04) (0.04) (0.01)
Net realized and unrealized gain on investments... 1.74 0.18 0.83
------ ------ ------
Total from investment operations.................... 1.70 0.14 0.82
------ ------ ------
Less distributions:
From net investment income........................ 0.00 0.00 0.00
From net realized gains........................... 0.00 0.00 0.00
------ ------ ------
Total distributions................................. 0.00 0.00 0.00
------ ------ ------
Net asset value, end of period...................... $11.70 $10.14 $10.82
====== ====== ======
Total return........................................ 17.00% 1.40% 8.20%
Ratios/supplemental data:
Net assets, end of period (millions)................ $ 5.6 $ 0.6 $ 1.0
Ratio of expenses to average net assets:
Before expense reimbursement...................... 5.59%* 34.80%* 3.45%*
After expense reimbursement....................... 1.56%* 1.64%* 1.74%*
Ratio of net investment loss to average net assets:
Before expense reimbursement...................... (5.30)%* (34.43)%* (2.65)%*
After expense reimbursement....................... (1.27)%* (1.27)%* (0.94)%*
Portfolio turnover rate............................. 75.68% 116.77% 41.71%
</TABLE>
* Ratios are annualized.
See accompanying Notes to Financial Statements.
20
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DUNCAN-HURST INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIODS (UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Aggressive Large Cap International
Growth Fund Growth-20 Fund Growth Fund
- -----------------------------------------------------------------------------------------------------
Six Months Six Months June 30, 1999
Ended Ended through
Sept. 30, 1999 Sept. 30, 1999 Sept. 30, 1999
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS I
Net asset value, beginning of period................ n/a n/a $10.00
------ ------ ------
Income from investment operations:
Net investment loss............................... n/a n/a (0.01)
Net realized and unrealized gain on investments... n/a n/a 0.77
------ ------ ------
Total from investment operations.................... n/a n/a 0.76
------ ------ ------
Less distributions:
From net investment income........................ n/a n/a 0.00
From net capital gains............................ n/a n/a 0.00
------ ------ ------
Total distributions................................. n/a n/a 0.00
------ ------ ------
Net asset value, end of period...................... n/a n/a $10.76
====== ====== ======
Total return........................................ n/a n/a 7.60%
Ratios/supplemental data:
Net assets, end of period (millions)................ n/a n/a $ 19.1
Ratio of expenses to average net assets:
Before expense reimbursement...................... n/a n/a 3.59%*
After expense reimbursement....................... n/a n/a 1.49%*
Ratio of net investment loss to average net assets:
Before expense reimbursement...................... n/a n/a (2.83)%*
After expense reimbursement....................... n/a n/a (0.73)%*
Portfolio turnover rate............................. n/a n/a 41.71%
</TABLE>
* Ratios are annualized.
See accompanying Notes to Financial Statements.
21
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DUNCAN-HURST INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS AT SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap Growth-20 Fund,
and Duncan-Hurst International Growth Fund (the "Funds") are each a series of
shares of beneficial interest of Professionally Managed Portfolios (the "Trust")
and are registered under the Investment Company Act of 1940 (the "1940 Act") as
diversified, open-end management investment companies. The Duncan-Hurst
Aggressive Growth Fund and the Duncan-Hurst Large Cap Growth-20 Fund began
operations on March 31, 1999, and the Duncan-Hurst International Growth Fund
began operations on June 30, 1999. The investment objectives of the Funds are
long-term growth of capital.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds. These policies are in conformity with generally accepted
accounting principles.
A. SECURITY VALUATION. Investments in securities traded on a national
securities exchange or Nasdaq are valued at the last reported sales
price at the close of regular trading on the last business day of the
reporting period; securities traded on an exchange or Nasdaq for which
there have been no sales and other over-the-counter securities are
valued at the last reported bid price. Securities for which quotations
are not readily available 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.
B. FEDERAL INCOME TAXES. The Funds intend to comply with the requirements
of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to their
shareholders. Therefore, no federal income tax provision is required.
C. SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS. Security
transactions are accounted for on the trade date. The cost of
securities sold is determined on a first-in, first- out basis.
Dividend income and distributions to shareholders are recorded on the
ex- dividend date.
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.
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
Duncan-Hurst Capital Management Inc. (the "Adviser") provided the Funds
with investment management services under an Investment Advisory Agreement. The
Adviser furnished all investment advice, office space, certain administrative
services and most of the personnel needed by the Funds. As compensation for its
services, the Adviser was entitled to a monthly fee at the annual rate of 1.00%,
22
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DUNCAN-HURST INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
1.00%, and 1.25% for Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap
Growth-20 Fund, and Duncan-Hurst International Growth Fund, respectively, based
upon the average daily net assets of the Funds. For the periods ended September
30, 1999, the advisory fees incurred were $14,718, $1,902, and $42,188 for
Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap Growth-20 Fund, and
Duncan-Hurst International Growth Fund, respectively.
The Advisor has agreed to reduce fees payable to it by the Funds and
reimburse other expenses to the extent necessary to limit the Funds' aggregate
annual operating expenses, excluding brokerage commissions and other portfolio
transactions expenses, interest, taxes, capital expenditures and extraordinary
expenses, to 1.48%, 1.48% 1.73%, and 1.48% for Duncan-Hurst Aggressive Growth
Fund, Duncan-Hurst Large Cap Growth-20 Fund, Duncan-Hurst International Growth
Fund Class R, and Duncan Hurst International Fund Class I, respectively. As a
result, the Advisor reimbursed the Funds for expenses in excess of the limit in
the amounts of $59,116, $62,885, and $70,649 for Duncan-Hurst Aggressive Growth
Fund, Duncan-Hurst Large Cap Growth-20 Fund, and Duncan-Hurst International
Growth Fund, respectively.
Investment Company Administration L.L.C., (the "Administrator") acts as the
Funds' administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Funds; prepares reports and materials to be supplied to the trustees;
monitors the activities of the Funds' custodian, transfer agent and accountants;
coordinates the preparation and payment of Fund expenses and reviews the Funds'
expense accruals. For its services, the Administrator receives a monthly fee
from each Fund at the following annual rates:
ANNUAL ADMINISTRATION FEE FOR DUNCAN-HURST AGGRESSIVE GROWTH FUND AND
DUNCAN-HURST LARGE CAP GROWTH-20 FUND:
Under $15 million $30,000
$15 to $50 million 0.20% of average daily net assets
$50 to $100 million 0.15% of average daily net assets
$100 to $150 million 0.10% of average daily net assets
Over $150 million 0.05% of average daily net assets
ANNUAL ADMINISTRATION FEE FOR DUNCAN-HURST INTERNATIONAL GROWTH FUND:
Under $15 million $35,000
$15 to $50 million 0.20% of average daily net assets
$50 to $100 million 0.15% of average daily net assets
$100 to $150 million 0.10% of average daily net assets
Over $150 million 0.05% of average daily net assets
For the periods ended September 30, 1999, Duncan-Hurst Aggressive Growth
Fund, Duncan-Hurst Large Cap Growth-20 Fund, and Duncan-Hurst International
Growth Fund, incurred $15,041, $15,041, and $15,055 in administration fees,
respectively.
First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Funds' shares. The
Distributor is an affiliate of the Administrator.
23
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DUNCAN-HURST INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
Certain officers and trustees of the Trust are also officers and/or
directors of the Administrator.
NOTE 4 - DISTRIBUTION PLAN
The Funds have adopted a Distribution Plan (the "Plan") in accordance with
Rule 12b-1 under the 1940 Act. The Plan provides that the Funds will 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 Funds. The fee is paid to the Advisor as
reimbursement for, or in anticipation of, expenses incurred for
distribution-related activity. For the periods ended September 30, 1999,
Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap Growth-20 Fund,
Duncan-Hurst International Growth fund paid fees of $3,679, $476 and $178,
respectively, to the Adviser.
NOTE 5 - PURCHASES AND SALES OF SECURITIES
The cost of purchases, other than short-term investments, were $7,260,472,
$969,261, and $24,345,131 for Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst
Large Cap Growth-20 Fund and Duncan-Hurst International Growth Fund,
respectively. Proceeds from sales of securities, other than short- term
investment, were $2,502,767, $455,797 and $5,695,412, for Duncan-Hurst
Aggressive Growth Fund, Duncan-Hurst Large Cap Growth-20 Fund, and Duncan-Hurst
International Growth Fund, respectively.
NOTE 6 - TAX BASIS APPRECIATION
At September 30, 1999, the basis of securities for federal tax purposes was
the same as their cost for financial reporting purposes. Unrealized appreciation
and depreciation of securities and foreign currency were as follows:
Aggressive Large Cap International
Growth Fund Growth-20 Fund Growth Fund
--------- -------- -----------
Gross unrealized appreciation... $ 888,734 $ 65,017 $ 1,984,206
Gross unrealized depreciation... (137,112) (9,591) (826,666)
--------- -------- -----------
Net unrealized appreciation... $ 751,622 $ 55,426 $ 1,157,540
========= ======== ===========
24
<PAGE>
ADVISER
Duncan-Hurst Capital Management Inc.
4365 Executive Drive, Suite 1520
San Diego, CA 92121
DISTRIBUTOR
First Fund Distributors, Inc.
4455 E. Camelback Road, Suite 261E
Phoenix, AZ 85018
CUSTODIAN
UMB Bank, N.A.
928 Grand Boulevard
Kansas City, MO 64106
TRANSFER AGENT
National Financial Data Services, Inc.
330 W. 9th Street
Kansas City, MO 64105
OR
P.O. Box 419284
Kansas City, MO 64141-6284
AUDITORS
Tait, Weller & Baker
8 Penn Center Plaza, Suite 800
Philadelphia, PA 19103
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
345 California Street
San Francisco, CA 94104
<PAGE>
DUNCAN-HURST CAPITAL MANAGEMENT
LARGE CAP GROWTH-20 FUND
AGGRESSIVE GROWTH FUND
INTERNATIONAL GROWTH FUND
c/o National Financial Data Services, Inc.
330 W. 9th Street
Kansas City, MO 64105
or
P.O. Box 419284
Kansas City, MO 64141-6284
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.
First Fund Distributors, Inc.
Phoenix, AZ 85018
FOR MORE INFORMATION: 1.800.558.9105
