PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
ANNUAL REPORT
FOR THE YEAR ENDED
MARCH 31, 1999
<PAGE>
April 15, 1999
Dear Shareholders:
1999 started out cautiously but the market (measured by the Dow Jones Industrial
Average) soon passed the psychologically important level of 10,000. First
quarter corporate profit increases seem to be broad-based and there is an
optimism that the global financial crisis may have bottomed out.
As of March 31, 1999, the Fund's average annual total returns are as follows:
One Three Five From Inception
Year Years Years at 10/1/93
---- ----- ----- ----------
Pro-Conscience
Women's Equity Mutual Fund 14.50% 23.05% 16.92% 16.22%
The current business expansion is the longest in peacetime history. Corporations
are benefitting from a low inflationary environment and continue to see
productivity gains. One significant impact of this growth is found in its
long-term effect on society due to the low unemployment rate. If the trend of a
tight job market continues into the next decade, we may finally see the
integration of low-skilled workers into society. One example of a success story
is found in the welfare to work program. Single women with families was the
largest category of people hired in 1998. The next step would be for
corporations to invest more in training so that those in entry-level jobs can
journey upward.
But amid all this optimism, the market is vulnerable to uncertainties in the
coming months because of the war in Kosovo and because of unforseen surprises.
We need to constantly remind ourselves that the best protection for investors is
keeping a well-diversified portfolio and that investments in equities are for
the long-term.
We hope you will continue to provide us with comments and suggestions and we
thank you for your confidence in us.
Sincerely yours,
/s/ Linda C.Y. Pei
Linda C.Y. Pei
President
<PAGE>
Average Annual Total Return
Period Ended March 31, 1999
1 Year.................. 14.50%
5 Year.................. 16.92%
Since Inception (10/1/93) 16.22%
Pro-Conscience
Quarter Women's Equity Fund S & P 500
------- ------------------- ---------
10/1/93 10,000 10,000
12/31/93 10,130 10,181
3/31/94 10,460 9,791
6/30/94 10,126 9,826
9/30/94 10,684 10,315
12/31/94 10,125 10,311
3/31/95 10,561 11,314
6/30/95 10,646 12,393
9/30/95 11,402 13,377
12/31/95 11,843 14,181
3/31/96 12,269 14,945
6/30/96 12,444 15,606
9/30/96 12,991 16,094
12/31/96 13,559 17,442
3/31/97 13,241 17,904
6/30/97 15,583 21,023
9/30/97 16,470 22,601
12/31/97 17,434 23,257
3/31/98 19,964 26,499
6/30/98 20,649 27,358
9/30/98 18,373 24,643
12/31/98 22,449 29,902
3/31/99 22,911 31,381
Past performance is not predictive of future performance.
The S&P 500 is a broad market-weighted average of U.S. blue-chip companies. The
S&P 500 is unmanaged and returns include reinvested dividends.
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
SCHEDULE OF INVESTMENTS at March 31, 1999
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 97.3% Market Value
- --------------------------------------------------------------------------------
COMPUTER SERVICES: 1.2%
2,000 Affiliated Computer Services, Inc., Class A *........... $ 91,500
500 Affiliated Computer Services, Inc.*..................... 22,875
----------
114,375
----------
CONSUMER DURABLES: 2.8%
2,400 Harley-Davidson, Inc.................................... 138,000
1,500 Honda Motor Company, Ltd................................ 133,500
----------
271,500
----------
CONSUMER PRODUCTS AND SERVICES: 10.9%
2,600 American Greetings Corp., Class A....................... 65,975
3,500 Avon Products, Inc...................................... 164,719
1,700 Coca-Cola Company....................................... 104,337
2,500 Colgate-Palmolive Company............................... 230,000
6,000 Dollar General Corp..................................... 204,000
2,600 Gillette Company........................................ 154,537
5,000 Jones Apparel Group, Inc.*.............................. 139,688
----------
1,063,256
----------
FINANCIAL SERVICES: 13.7%
1,200 American International Group, Inc....................... 144,750
3,310 BankAmerica Corp........................................ 233,769
7,000 BankBoston Corp......................................... 303,187
750 The Charles Schwab Corp................................. 72,094
2,400 Federal National Mortgage Association................... 166,200
1,800 First Tennessee National Corp........................... 65,925
5,000 MBNA Corp............................................... 119,375
2,000 UNUM Corp............................................... 95,125
4,000 Wells Fargo Company..................................... 140,250
----------
1,340,675
----------
FOOD - BAKING: 0.7%
3,000 Earthgrains Company..................................... 66,562
----------
See accompanying Notes to Financial Statements.
3
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
SCHEDULE OF INVESTMENTS at March 31, 1999, Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
FURNISHINGS: 4.5%
5,000 Herman Miller, Inc...................................... $ 91,250
7,800 Leggett & Platt, Inc.................................... 156,000
4,000 Newell Company.......................................... 190,000
----------
437,250
----------
HEALTHCARE: 16.0%
3,800 Becton, Dickinson and Company........................... 145,587
2,000 Cardinal Health, Inc.................................... 132,000
2,000 IDX Sys Corp.*.......................................... 29,000
4,000 Johnson & Johnson....................................... 374,750
2,900 Medtronic, Inc.......................................... 208,075
3,600 Merck & Company, Inc.................................... 288,675
3,500 Schering-Plough Corp.................................... 193,594
3,700 Stryker Corp............................................ 186,619
----------
1,558,300
----------
INDUSTRIAL MATERIALS: 0.9%
2,600 Praxair, Inc............................................ 93,763
----------
INSTRUMENTS: 1.4%
4,000 Teleflex, Inc........................................... 136,250
----------
INSURANCE - PROPERTY/CASUALTY: 0.9%
1,500 Chubb Corp.............................................. 87,844
----------
INVESTMENT MANAGEMENT: 1.0%
3,000 T. Rowe Price Associates, Inc........................... 103,125
----------
MEDIA AND PUBLISHING: 1.3%
4,000 Walt Disney Company..................................... 124,500
----------
OIL & GAS PRODUCERS: 2.3%
2,191 BP Amoco, PLC........................................... 221,155
----------
See accompanying Notes to Financial Statements.
4
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
SCHEDULE OF INVESTMENTS at March 31, 1999, Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
POWER SUPPLY EQUIPMENT: 1.2%
3,000 Hubbell, Inc., Class B.................................. $ 120,000
----------
PRODUCER PRODUCTS: 3.6%
5,000 Baldor Electric Company................................. 100,625
4,000 Illinois Tool Works, Inc................................ 247,500
----------
348,125
----------
PUBLISHING NEWSPAPERS: 1.7%
5,000 McClatchy Company, Class A.............................. 167,813
----------
RETAIL: 3.8%
7,000 BJ's Wholesale Club, Inc.*.............................. 185,063
2,000 Costco Companies, Inc.*................................. 183,125
----------
368,188
----------
TECHNOLOGY: 15.0%
1,500 Applied Materials, Inc.*................................ 92,531
2,600 Automatic Data Processing, Inc.......................... 107,575
2,000 Cisco Systems, Inc.*.................................... 219,125
1,600 Hewlett-Packard Company................................. 108,500
1,300 Intel Corp.............................................. 154,862
5,000 Microsoft Corp.*........................................ 448,125
2,500 Sanmina Corp.*.......................................... 159,375
3,200 Xerox Corp.............................................. 170,800
----------
1,460,893
----------
TELECOMMUNICATIONS - EQUIPMENT: 8.0%
2,600 AT&T Corp............................................... 207,512
3,500 Aliant Communications, Inc.............................. 143,281
2,000 Century Telephone Enterprises, Inc...................... 140,500
2,700 Lucent Technologies, Inc................................ 290,925
----------
782,218
----------
TELEPHONE - LONG DISTANCE: 1.4%
1,500 MCI WorldCom, Inc.*..................................... 132,844
----------
See accompanying Notes to Financial Statements.
5
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
SCHEDULE OF INVESTMENTS at March 31, 1999, Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
TRANSPORTATION: 1.4%
4,500 Southwest Airlines Company.............................. $ 136,125
----------
UTILITIES: 3.6%
4,200 BellSouth Corp.......................................... 168,262
4,000 SBC Communications, Inc................................. 188,500
----------
356,762
----------
Total Common Stocks (cost $6,312,516)................... 9,491,523
----------
Principal
Amount REPURCHASE AGREEMENTS: 4.2%
- --------------------------------------------------------------------------------
$412,000 Firstar Bank Repurchase Agreement, 3.50%, dated 3/31/1999,
due 4/1/1999, collateralized by $421,246 GNMA, 5.68%,
due 2/28/2001 (proceeds $412,040) (cost $412,000)..... 412,000
----------
Total Investment in Securities (cost
$6,724,516+): 101.5%............... 9,903,523
Liabilities in excess of Other Assets: (1.5%)....... (147,135)
----------
Total Net Assets: 100.0% ........................... $9,756,388
==========
*Non-income producing security.
+At March 31, 1999, 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................................ $3,465,368
Gross unrealized depreciation................................ (286,361)
----------
Net unrealized appreciation................................ $3,179,007
==========
See accompanying Notes to Financial Statements.
6
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
STATEMENT OF ASSETS AND LIABILITIES at March 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments in securities, at value (cost $6,724,516) ...... $ 9,903,523
Cash ....................................................... 808
Receivables:
Fund shares sold ..................................... 15,154
Dividends and interest ............................... 9,102
Prepaid expenses ........................................... 4,223
-----------
Total assets ................................... 9,932,810
-----------
LIABILITIES
Payables:
Advisory fees ........................................ 751
Securities purchased ................................. 137,400
Accrued expenses ........................................... 38,271
-----------
Total liabilities .............................. 176,422
-----------
NET ASSETS ....................................................... $ 9,756,388
===========
Net asset value, offering and redemption price per share
($9,756,388/491,186 shares outstanding; unlimited
number of shares authorized without par value) ........... $ 19.86
===========
COMPONENTS OF NET ASSETS
Paid-in capital ............................................ $ 6,233,439
Accumulated net investment loss ............................ (1,909)
Undistributed net realized gain on investments ............. 345,851
Net unrealized appreciation on investments ................. 3,179,007
-----------
Net assets ........................................... $ 9,756,388
===========
See accompanying Notes to Financial Statements.
7
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
STATEMENT OF OPERATIONS - For the Year Ended March 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividend ................................................... $ 80,533
Interest ................................................... 5,250
-----------
Total income ......................................... 85,783
-----------
Expenses
Advisory fees .............................................. 80,905
Administration fee ......................................... 30,000
Distribution fees .......................................... 19,549
Fund accounting fees ....................................... 16,796
Transfer agent fees ........................................ 16,316
Audit fee .................................................. 14,114
Registration fees .......................................... 9,810
Custody fees ............................................... 7,209
Reports to shareholders .................................... 5,706
Legal fees ................................................. 4,149
Trustee fees ............................................... 3,998
Miscellaneous .............................................. 2,353
-----------
Total expenses ........................................... 210,905
Less: expenses waived and reimbursed ..................... (93,557)
-----------
Net expenses ............................................. 117,348
-----------
Net investment loss .................................... (31,565)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from security transactions ............... 652,750
Net change in unrealized appreciation on investments ....... 496,587
-----------
Net realized and unrealized gain on investments .......... 1,149,337
-----------
Net increase in net assets resulting from operations ... $ 1,117,772
===========
See accompanying Notes to Financial Statements.
8
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Year Year
Ended Ended
March 31, 1999 March 31, 1998
-------------- --------------
INCREASE IN NET ASSETS FROM:
OPERATIONS
Net investment loss ........................... $ (31,565) $ (14,155)
Net realized gain from security transactions .. 652,750 87,152
Net change in unrealized appreciation on
investments ................................. 496,587 2,196,962
----------- -----------
Net increase in net assets resulting from
operations ............................... 1,117,772 2,269,959
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net realized gain on investments .............. (335,895) (54,283)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net
change in outstanding shares (a) ............ 2,003,249 310,806
----------- -----------
Total increase in net assets ............... 2,785,126 2,526,482
NET ASSETS
Beginning of year ............................. 6,971,262 4,444,780
----------- -----------
End of year ...................................... $ 9,756,388 $ 6,971,262
=========== ===========
(a) A summary of capital shares transactions is as follows:
Year Ended Year Ended
March 31, 1999 March 31, 1998
------------------------ ------------------------
Shares Value Shares Value
------- ----------- ------ -----------
Shares sold ........... 125,386 $ 2,361,170 79,313 $ 1,193,662
Shares issued in
reinvestment of
distribution ........ 17,931 324,916 3,414 52,744
Shares redeemed ....... (37,925) (682,837) (64,217) (935,600)
------- ----------- ------ -----------
Net increase .......... 105,392 $ 2,003,249 18,510 $ 310,806
======= =========== ====== ===========
See accompanying Notes to Financial Statements.
9
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each year
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Year Ended March 31,
1999 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $18.07 $12.10 $11.22 $ 9.93 $10.46
Income from investment operations:
Net investment income (loss) ............... (0.06) (0.04) (0.01) 0.01 0.36
------ ------ ------ ------ ------
Net realized and unrealized
gain (loss) on investments .............. 2.65 6.16 0.90 1.59 (0.28)
------ ------ ------ ------ ------
Total from investment operations............... 2.59 6.12 0.89 1.60 0.08
------ ------ ------ ------ ------
Less distributions:
From net investment income.................. 0.00 0.00 (0.01) (0.31) (0.02)
From net capital gains ..................... (0.80) (0.15) 0.00 0.00 (0.59)
------ ------ ------ ------ ------
Total distributions............................ (0.80) (0.15) (0.01) (0.31) (0.61)
------ ------ ------ ------ ------
Net asset value, end of year................... $19.86 $18.07 $12.10 $11.22 $ 9.93
====== ====== ====== ====== ======
Total return .................................. 14.50% 50.77% 7.92% 16.17% 0.97%
Ratios/supplemental data:
Net assets, end of year (millions)............. $ 9.8 $ 7.0 $ 4.4 $ 3.3 $ 1.5
Ratio of expenses to average net assets:
Before expense reimbursement and waiver..... 2.70% 3.12% 4.09% 4.75% 8.69%
After expense reimbursement and waiver...... 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of net investment income (loss) to
average net assets:
Before expense reimbursement and waiver..... (1.60)% (1.88)% (2.64)% (1.97)% (1.97)%
After expense reimbursement and waiver...... (0.40)% (0.26)% (0.05)% 1.28% 5.22%
Portfolio turnover rate ....................... 16.36% 27.21% 51.13% 120.64% 705.88%
</TABLE>
10
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
NOTES TO FINANCIAL STATEMENTS at March 31, 1999
- --------------------------------------------------------------------------------
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 sales 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 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 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 federal income tax provision is required.
C. SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS. As is
common in the industry, security transactions are accounted for on the
trade date. The cost of securities owned on realized transactions is
relieved 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
For the year ended March 31, 1999, Pro-Conscience Funds, Incorporated (the
"Advisor") provided the Fund with investment management services under an
Investment Advisory Agreement. The Advisor furnished all investment advice,
office space, certain administrative services, and most of the personnel needed
by the Fund. As compensation for its services, the Advisor was entitled to a
monthly fee at the annual rate of 1.00%
11
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
NOTES TO FINANCIAL STATEMENTS, Continued
- --------------------------------------------------------------------------------
based upon the average daily net assets of the Fund. For the year ended March
31, 1999, the Fund incurred $80,905 in Advisory fees. In order to maintain the
Fund's operating expenses at 1.50% of average daily net assets, the Advisor has
waived a portion of its fee and reimbursed expenses totaling $93,557 for the
year ended March 31, 1999. 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, LLC (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 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 year ended March 31, 1999, the Fund incurred $30,000 in
Administration fees.
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 PLAN
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, 1999, the Fund paid
fees of $19,549 to the Distribution Coordinator.
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, 1999, were $2,762,350 and
$1,250,962, respectively.
NOTE 6 - REPURCHASE AGREEMENTS
The Fund may enter into repurchase agreements with government securities
dealers recognized by the Federal Reserve Board, with member banks of the
Federal Reserve System or with such other brokers or dealers that
12
<PAGE>
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND LOGO
NOTES TO FINANCIAL STATEMENTS, Continued
- --------------------------------------------------------------------------------
meet the credit guidelines established by the Board of Trustees. The Fund will
always receive and maintain, as collateral, securities whose market value,
including accrued interest, will be at least equal to 100% of the dollar amount
invested by the Fund in each agreement, and the Fund will make payment for such
securities only upon physical delivery or upon evidence of book entry transfer
to the account of the custodian. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market on a
daily basis to ensure the adequacy of the collateral. If the seller defaults and
the value of the collateral declines, or if bankruptcy proceedings are commenced
with respect to the seller of the security, realization of the collateral by the
Fund may be delayed or limited.
13
<PAGE>
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, 1999, 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 five years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our 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, 1999, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Pro-Conscience Women's Equity Mutual Fund as of March 31, 1999, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended and the financial highlights for each
of the five years in the period then ended, in conformity with generally
accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
April 16, 1999
14
<PAGE>
Advisor
Pro-Conscience Funds, Inc.
625 Market Street, 16th Floor
San Francisco, California 94105
(415) 547-9135
--
Distributor
First Fund Distributors, Inc.
4455 E. Camelback Road, Suite 261E
Phoenix, Arizona 85018
--
Custodian
Firstar Bank, N.A.
425 Walnut Street
Cincinnati, Ohio 45202
--
Transfer Agent
American Data Services, Inc.
P.O. Box 5536
Hauppauge, New York 11788
(800) 282-2340
--
Auditors
Tait, Weller & Baker
8 Penn Center, Suite 800
Philadelphia, Pennsylvania 19101
--
Legal Counsel
Paul, Hastings, Janofsky & Walker LLP
345 California Street, 29th Floor
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.
