DUNCAN-HURST
aggressive
growth
fund
large cap
growth-20
fund
international
growth
fund
technology
fund
ANNUAL REPORT
AS OF MARCH 31, 2000
www.duncan-hurst.com
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
TABLE OF CONTENTS
--------------------------------------------------------------------------------
SHAREHOLDER LETTER ......................................................... 1
Duncan-Hurst Aggressive Growth Fund
Fund Objective & Strategy ......................................... 2
Market Review ..................................................... 2
Performance Graphs ................................................ 3
Schedule of Investments ........................................... 4
Duncan-Hurst Large Cap Growth-20 Fund
Fund Objective & Strategy ......................................... 6
Market Review ..................................................... 6
Performance Graph ................................................. 7
Schedule of Investments ........................................... 9
Duncan-Hurst International Growth Fund
Fund Objective & Strategy ......................................... 10
Market Review ..................................................... 10
Performance Graphs ................................................ 11
Schedule of Investments ........................................... 12
Duncan-Hurst Technology Fund
Fund Objective & Strategy ......................................... 16
Market Review ..................................................... 16
Performance Graph ................................................. 17
Schedule of Investments ........................................... 18
STATEMENTS OF ASSETS AND LIABILITIES ....................................... 20
STATEMENTS OF OPERATIONS ................................................... 22
STATEMENTS OF CHANGES IN NET ASSETS ........................................ 24
FINANCIAL HIGHLIGHTS ....................................................... 26
NOTES TO FINANCIAL STATEMENTS .............................................. 28
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ......................... 33
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
Dear Shareholder:
I am pleased to present the first annual report for the Duncan-Hurst family
of funds. The year 2000 marks several important events for Duncan-Hurst Capital
Management.
March 31, 2000 marked the one-year anniversary of both our Aggressive
Growth Fund and our Large Cap Growth 20 Fund. This first anniversary was
celebrated with the Aggressive Growth Fund and the Large Cap Growth 20 Fund
achieving one-year performance results through March 31, 2000 of 124.00% and
93.10%, respectively. We also celebrated the ten-year anniversary of the firm
with total assets under management of $5.9 billion, including mutual fund assets
of $93 million. Since its inception over ten years ago, Duncan-Hurst has adhered
to its mission of pursuing superior investment returns over the long term to
clients by investing in the most dynamic growth areas of the economy.
Since our last report, I am happy to report to our shareholders that we had
a very successful six-month period ended March 31, 2000. The individual fund
results, as well as a more detailed profile of each fund, are presented in this
annual report. For any additional information on our funds, we invite you to
visit our website at www.duncan-hurst.com or call 1-800-558-9105.
Thank you for your investment in Duncan-Hurst Mutual Funds. We appreciate
the opportunity to help you meet your investment goals.
Sincerely,
/s/ William H. Duncan, Jr.
William H. "Beau" Duncan, Jr.
Chairman
Past performance is not a guarantee of future results. Total returns stated
above were for the Class R Shares and were achieved during favorable conditions
in the market for aggressive growth companies. Investors should not expect that
such favorable returns can be consistently achieved. Investment returns and
principal will fluctuate so that shares, when redeemed, may be worth more or
less than their original cost.
1
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DUNCAN-HURST AGGRESSIVE GROWTH FUND
WILLIAM H. "BEAU" DUNCAN, JR.
Portfolio Manager
FUND OBJECTIVE & STRATEGY
The Duncan-Hurst Aggressive Growth Fund seeks to provide long-term capital
growth primarily through investment in stocks of medium-cap 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
Medium-cap growth stocks performed strongly over the last two quarters. The
Fund's cumulative total return for the last six months and the one-year period
ended March 31, 2000 were 91.45% and 124.00%, respectively.* The performance was
driven by the Fund's overweight position in the technology sector, and in
particular, the telecommunications and semiconductor areas. The industry groups
that contributed the most to our performance were Internet-related, software and
telecommunication equipment and services. The evolution of the Internet as a
facilitator of business-to-business (B2B) commerce emerged as a powerful theme
during the fourth quarter. After a strong fourth quarter and a strong February,
the market corrected. The correction was broad, affecting all areas of the
portfolio.
Looking forward, we still see many favorable macro trends. Inflation remains
low, despite low unemployment. Although interest rates have been raised slightly
again, there is no shortage of low cost capital for companies, so it appears
that the "New Economy" stocks will continue to have plenty of opportunity to
invest and grow at high rates. However, with valuations still near all time
highs, we believe it is likely that some of the more predictable growth company
stocks will outperform over the next quarter.
----------
* Total returns stated above are for the Class R Shares of the Fund and were
achieved during favorable market conditions. Investors should not expect
that such favorable returns can be consistently achieved.
2
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DUNCAN-HURST AGGRESSIVE GROWTH FUND
CLASS R
Value of $10,000 vs Russell Midcap Growth Index
Average Annual Total Return
Period Ended March 31, 2000
Since Inception (3/31/99) ........ 124.00%
Duncan-Hurst Aggressive Russell
Growth Fund Class R Midcap Growth
------------------- -------------
3/31/99 10,000 10,000
4/30/99 11,160 10,456
5/31/99 10,160 10,321
6/30/99 10,790 11,042
7/31/99 10,690 10,690
8/31/99 11,410 10,579
9/30/99 11,700 10,489
10/31/99 13,440 11,300
11/30/99 14,970 12,470
12/31/99 20,280 14,629
1/31/00 20,120 14,627
2/29/00 27,800 17,701
3/31/00 22,400 17,719
DUNCAN-HURST AGGRESSIVE GROWTH FUND
CLASS I
Value of $10,000 vs Russell Midcap Growth Index
Cumulative Total Return
Period Ended March 31, 2000
Since Inception (10/19/99) ....... 94.80%
Duncan-Hurst Aggressive Russell
Growth Fund Class I Midcap Growth
------------------- -------------
10/19/99 10,000 10,000
10/31/99 11,648 11,219
11/30/99 12,975 12,381
12/31/99 17,580 14,525
1/31/00 17,502 14,522
2/29/00 24,172 17,575
3/31/00 19,480 17,593
Past performance is not predictive of future performance.
The Russell Midcap Growth Index measures the performance of the 800 smallest
companies in the Russell 1000 Index. The Russell Midcap Growth Index is
unmanaged and returns include reinvested dividends.
3
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DUNCAN-HURST AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS at March 31, 2000
--------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS: 97.5%
APPLICATIONS SOFTWARE: 2.5%
12,200 Peregrine Systems, Inc.* ............................... $ 818,162
970 Quest Software, Inc.* .................................. 109,367
-----------
927,529
-----------
BUILDING AND CONSTRUCTION: 0.4%
2,970 Dycom Industries, Inc.* ................................ 144,787
-----------
CAPACITORS: 0.3%
1,850 Kemet, Corp.* .......................................... 117,013
-----------
CELLULAR TELECOMMUNICATIONS: 1.6%
15,770 Alamosa PCS Holdings, Inc.* ............................ 595,317
-----------
CIRCUITS: 4.3%
1,060 ANADIGICS, Inc.* ....................................... 69,960
5,950 Emulex Corp.* .......................................... 649,294
8,485 Micrel, Inc.* .......................................... 814,560
3,000 Viasystems Group, Inc.* ................................ 46,500
-----------
1,580,314
-----------
COMMERCIAL SERVICES: 0.4%
2,550 Quanta Services, Inc.* ................................. 154,753
-----------
COMPUTER SOFTWARE: 10.4%
5,040 Check Point Software Technologies Ltd.* ................ 862,155
18,760 Mercury Interactive Corp.* ............................. 1,486,730
3,270 Micromuse, Inc.* ....................................... 453,917
13,220 Symantec Corp.* ........................................ 993,152
-----------
3,795,954
-----------
E-COMMERCE: 0.2%
1,061 Ventro Corp.* .......................................... 60,079
-----------
ELECTRONIC COMPONENTS: 2.1%
11,110 Flextronics International Ltd.* ........................ 782,561
-----------
FIBER OPTICS: 6.3%
3,190 E-Tek Dynamics, Inc.* .................................. 750,448
7,320 SDL, Inc.* ............................................. 1,558,245
-----------
2,308,693
-----------
GAS & ELECTRIC UTILITIES: 6.1%
15,500 Calpine Corp.* ......................................... $ 1,457,000
12,120 Montana Power Co. ...................................... 775,680
-----------
2,232,680
-----------
INTERNET CONTENT: 0.4%
3,200 Rare Medium Group, Inc.* 141,200
-----------
INTERNET SOFTWARE: 12.1%
890 Ariba, Inc.* ........................................... 186,567
9,770 BroadVision, Inc.* ..................................... 438,428
6,275 Clarent Corp.* ......................................... 565,927
8,735 Digex, Inc.* ........................................... 969,039
6,234 Exodus Communications, Inc.* ........................... 875,877
980 Internap Network Services Corp.* ....................... 45,080
2,680 Keynote Systems, Inc.* ................................. 274,030
7,210 Scient Corp.* .......................................... 653,857
1,500 TIBCO Software, Inc.* .................................. 122,250
2,740 Vitria Technology, Inc.* ............................... 276,226
-----------
4,407,281
-----------
MEDIA: 2.3%
7,480 Univision Communications, Inc.* ........................ 845,240
-----------
MOTION PICTURE & SERVICES: 2.6%
10,930 Macrovision Corp.* ..................................... 941,346
-----------
MEDICAL RESEARCH: 0.8%
590 Affymetrix, Inc.* ...................................... 87,578
740 Celgene Corp.* ......................................... 73,676
970 Millennium Pharmaceuticals, Inc.* ...................... 125,979
-----------
287,233
-----------
OILS & GAS PRODUCERS: 0.2%
5,330 Ocean Energy, Inc.* .................................... 76,619
-----------
OIL & GAS SERVICES: 1.2%
5,730 BJ Services Co.* ......................................... 423,304
-----------
PHARMACEUTICAL: 4.6%
5,700 Jones Pharma, Inc. ..................................... 173,138
8,690 MedImmune, Inc.* ....................................... 1,513,146
-----------
1,686,284
-----------
4
<PAGE>
DUNCAN-HURST AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS at March 31, 2000 (Continued)
--------------------------------------------------------------------------------
Shares Value
------ -----
RETAIL: 1.2%
4,920 Best Buy Co., Inc.* .................................... $ 423,120
-----------
SEMICONDUCTORS: 10.4%
11,500 Applied Micro Circuits Corp.* .......................... 1,725,719
9,890 GlobeSpan, Inc.* ....................................... 1,008,161
2,830 QLogic Corp.* .......................................... 383,465
5,490 Silicon Laboratories, Inc.* ............................ 485,865
2,730 TriQuint Semiconductor, Inc.* .......................... 200,655
-----------
3,803,865
-----------
SCIENTIFIC INSTRUMENTS: 0.2%
1,420 Millipore Corp. ........................................ 80,142
-----------
TELECOMMUNICATIONS: 11.3%
8,020 Adelphia Business Solutions, Inc. - CL A* .............. 494,232
12,230 Allegiance Telecom, Inc.* .............................. 986,043
3,690 Comverse Technology, Inc.* ............................. 697,410
13,390 Copper Mountain Networks, Inc.* ........................ 1,097,142
3,890 Digital Lightwave, Inc.* ............................... 242,396
1,600 Ditech Communications Corp.* ........................... 169,700
1,280 Efficient Networks, Inc.* .............................. 199,360
2,490 MasTec, Inc.* .......................................... 221,610
-----------
4,107,893
-----------
TELEPHONE - INTEGRATED: 5.1%
15,070 NEXTLINK Communications, Inc. - CL A* .................. 1,863,972
-----------
WIRELESS COMMUNICATION EQUIPMENT: 10.5%
19,840 Advanced Fibre Communications, Inc.* ................... 1,243,720
8,528 RF Micro Devices, Inc.* ................................ 1,145,950
11,160 Voicestream Wireless Corp.* ............................ 1,437,548
-----------
3,827,218
-----------
TOTAL COMMON STOCKS: (cost $29,167,954) ................ 35,614,397
-----------
SHORT-TERM INVESTMENTS: 2.7%
$989,367 UMB Money Market Fiduciary (cost $989,367) .............. $ 989,367
-----------
TOTAL INVESTMENTS (cost $30,157,321): 100.2% ..................... 36,603,764
Liabilities in excess of Other Assets: (0.2)% .................... (59,110)
-----------
NET ASSETS: 100.0% $36,544,654
===========
* Non-income producing security.
See accompanying Notes to Financial Statements.
5
<PAGE>
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
DAVID C. MAGEE
Portfolio Manager
FUND OBJECTIVE & STRATEGY
The Duncan-Hurst Large Cap Growth-20 Fund seeks to provide long-term capital
growth. The Fund will primarily invest in 20-30 common stocks of large
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
For the one-year period ended March 31, 2000, Duncan-Hurst Large Cap Growth-20
Fund outperformed the Russell 1000 Growth Index with a cumulative total return
of 93.10%* versus 34.12%. The Fund's largest weightings were in technology. The
principal theme driving the portfolio's technology stocks remains the global
proliferation of digital data transmissions. The scale of the proliferation is
unprecedented and has begun to reshape consumer and commercial behavior. Telecom
service providers are rapidly deploying new, digital infrastructure in order to
accommodate the boom. Businesses and whole industries are beginning to organize
around the Internet as a means of gaining efficiency and cost competitiveness.
The NASDAQ correction has shown that the ideal conditions of low and
decelerating inflation along with exceptional acceleration in technology
earnings have eroded somewhat. After the correction, because we expect that
demand for technology products and services will remain strong in 2000, we
believe that strength will return to technology stocks, albeit with more
selectivity.
* Total return stated above was achieved during favorable market conditions.
Investors should not expect that such a favorable return can be
consistently achieved.
6
<PAGE>
DUNCAN-HURST LARGE CAP GROWTH-20 FUND
Value of $10,000 vs Russell 1000 Growth Index
Average Annual Total Return
Period Ended March 31, 2000
Since Inception (3/31/99) ........ 93.10%
Duncan-Hurst Large Cap Russell 1000 Growth
Growth-20 Fund Index w/inc.
-------------- ------------
3/31/99 10,000 10,000
4/30/99 9,790 10,013
5/31/99 9,130 9,705
6/30/99 9,970 10,385
7/31/99 9,640 10,055
8/31/99 9,970 10,219
9/30/99 10,140 10,004
10/31/99 11,230 10,760
11/30/99 12,860 11,340
12/31/99 16,180 12,520
1/31/00 15,540 11,933
2/29/00 20,200 12,516
3/31/00 19,310 13,412
Past performance is not predictive of future performance.
The Russell 1000 Growth Index measures the performance of those 1000 Companies
with higher price to book ratios and higher forecasted growth values. The
Russell 1000 Growth Index is unmanaged and returns include reinvested dividends.
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8
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DUNCAN-HURST LARGE CAP GROWTH-20 FUND
SCHEDULE OF INVESTMENTS at March 31, 2000
--------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS: 94.7%
BIOLOGICAL RESEARCH: 3.4%
481 Genentech, Inc.* ...................................... $ 73,112
-----------
COMPUTER NETWORKING: 15.8%
1,704 Cisco Systems, Inc.* .................................. 131,740
505 Juniper Networks, Inc.* ............................... 133,099
770 Sun Microsystems, Inc.* ............................... 72,151
-----------
336,990
-----------
COMPUTER SOFTWARE: 5.8%
257 I2 Technologies, Inc.* ................................ 31,386
774 Oracle Systems Corp.* ................................. 60,420
272 Siebel Systems, Inc.* ................................. 32,487
-----------
124,293
-----------
COMPUTER STORAGE DEVICES: 10.2%
454 EMC Corp.* ............................................ 56,750
466 Network Appliance, Inc.* .............................. 38,562
933 Veritas Software Corp.* ............................... 122,223
-----------
217,535
-----------
ELECTRONIC COMPONENTS: 10.8%
340 Applied Micro Circuits Corp.* ......................... 51,021
280 PMC - Sierra, Inc.* ................................... 57,033
347 STMicroelectronics NV-NY SHS .......................... 64,954
360 Texas Instruments, Inc. ............................... 57,600
-----------
230,608
-----------
FIBER OPTICS: 2.6%
288 Corning, Inc. ......................................... 55,872
-----------
INTERNET SOFTWARE: 3.9%
170 Ariba, Inc.* .......................................... 35,636
589 TIBCO Software, Inc.* ................................. 48,003
-----------
83,639
-----------
MEDIA: 5.4%
1,953 AT&T Corp - Liberty Media Group - CL A* ............... 115,716
-----------
RETAIL: 2.9%
940 Home Depot, Inc. ...................................... 60,630
-----------
SATELLITE TELECOMMUNICATIONS: 5.9%
1,592 Echostar Communications Corp. - CL A* ................. $ 125,768
-----------
SEMICONDUCTORS: 8.7%
456 Broadcom Corp. - CL A* ................................ 110,751
583 Intel Corp. ........................................... 76,920
-----------
187,671
-----------
TELECOMMUNICATIONS EQUIPMENT: 10.2%
1,044 JDS Uniphase Corp.* 125,867
425 Nokia Corp. - Sponsored ADR ........................... 92,331
-----------
218,198
-----------
WIRELESS COMMUNICATIONS EQUIPMENT: 9.1%
414 Motorola, Inc. ........................................ 58,943
552 Nextel Communications, Inc. - CL A* ................... 81,834
829 Sprint Corp. (PCS Group)* ............................. 54,145
-----------
194,922
-----------
TOTAL COMMON STOCKS: (cost $1,579,861) .......................... 2,024,954
-----------
Principal
Amount
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS: 3.2%
$68,795 UMB Money Market Fiduciary (cost $68,795) ............... 68,795
-----------
TOTAL INVESTMENTS
(cost $1,648,656): 97.9% ....................................... 2,093,749
Other Assets less Liabilities: 2.1% ............................. 44,152
-----------
NET ASSETS: 100.0% .............................................. $ 2,137,901
===========
* Non-income producing security.
See accompanying Notes to Financial Statements.
9
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
VINCENT A. WILLYARD
Portfolio Manager
FUND OBJECTIVE & STRATEGY
The Duncan-Hurst International Growth Fund seeks to provide long-term capital
growth primarily through investment in non-U.S. companies. The adviser seeks to
identify companies with accelerating earnings growth sustained by positive
company and country fundamentals. 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 most attractive countries.
MARKET REVIEW
Duncan-Hurst International Growth Fund posted solid returns over the last two
quarters. The Fund outperformed the MSCI EAFE Index for the six-month period
ended March 31, 2000 with a cumulative total return of 98.06% versus 16.86%. In
addition, the Fund's cumulative total return since inception (June 30, 1999) was
114.30% versus 21.99% for the MSCI EAFE Index.* The strong returns can be
attributed to both country allocation and industry and stock selection. The
top-down portion of our process directed us towards countries experiencing
positive change and growth. In the fourth quarter of 1999 and the first quarter
of 2000, the Fund's overweight position in Europe significantly contributed to
our outperformance. At the beginning of the fourth quarter, we shifted towards
Europe's technology, media and communication stocks, as a cyclical slowdown
occurred in Japan and growth accelerated in Europe. Not only did this regional
growth contribute to performance but the Fund also benefited from its
positioning into economically cyclical stocks. The Fund was invested in
industries that exhibited strong earnings growth that was driven by both
structural changes and the demand for high bandwidth services.
Looking forward, we feel there are exciting growth opportunities developing in
both Europe and Asia that were non-existent just a few years ago. This is mainly
due to the deregulation of markets and industries worldwide and its effect on
the access to capital for bright and ambitious entrepreneurs. Examples include
industries such as wireless communications and the Internet, which are growing
at rapid growth rates. We believe we are well positioned to capitalize on these
opportunities.
* Total returns stated above are for the Class R Shares of the Fund and were
achieved during favorable market conditions. Investors should not expect
that such favorable returns can be consistently achieved.
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND CLASS R
Value of $10,000 vs MSCI EAFE Index
Cumulative Total Return
Period Ended March 31, 2000
Since Inception (6/30/99) ....... 114.30%
Duncan-Hurst International MSCI
Growth Fund Class R EAFE Index
------------------- ----------
10,000 10,000
10,320 10,297
10,610 10,335
10,820 10,439
11,760 10,830
15,350 11,206
18,850 12,213
19,460 11,436
25,260 11,744
21,430 12,199
DUNCAN-HURST INTERNATIONAL GROWTH FUND CLASS I
Value of $10,000 vs MSCI EAFE Index
Cumulative Total Return
Period Ended March 31, 2000
Since Inception (6/30/99) ....... 113.80%
Duncan-Hurst International MSCI
Growth Fund Class I EAFE Index
------------------- ----------
6/30/99 10,000 10,000
7/31/99 10,320 10,297
8/31/99 10,550 10,335
9/30/99 10,760 10,439
10/31/99 11,720 10,830
11/30/99 15,290 11,206
12/31/99 18,780 12,213
1/31/00 19,390 11,436
2/29/00 25,200 11,744
3/31/00 21,380 12,199
Past performance is not predictive of future performance.
The Morgan Stanley Capital International Europe, Australasia, Far East Index
("MSCI EAFE Index") is a broad market index of selected companies in 21
developed countries. MSCI EAFE Index is unmanaged and returns include reinvested
dividends.
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS at March 31, 2000
--------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS: 94.7%
BELGUIM: 0.1%
320 Ubizen, Inc.* ........................................... $ 57,567
-----------
BRAZIL: 0.4%
9,925 Globo Cabo S.A. - ADR ................................... 186,094
-----------
CANADA: 1.2%
1,680 Nortel Networks Corp. ................................... 211,680
940 Sierra Wireless, Inc.* .................................. 65,976
7,120 Wi-LAN, Inc.* ........................................... 296,702
-----------
574,358
-----------
DENMARK: 1.3%
3,740 Navision Software AS* ................................... 336,482
810 Vestas Wind Systems AS* ................................. 294,621
-----------
631,103
-----------
FINLAND: 7.9%
5,885 Aldata Solutions OYJ* ................................... 529,348
4,740 Comptel OYJ* ............................................ 524,328
62,600 Jot Automation Group OYJ ................................ 563,078
2,775 Nokia AB* ............................................... 586,843
4,090 Nokia Corp - ADR ........................................ 888,553
6,280 Satama Interactive OYJ* ................................. 144,224
3,185 Sonera OYJ .............................................. 217,303
10,020 Stonesoft OYJ* .......................................... 235,868
-----------
3,689,545
-----------
FRANCE: 16.8%
1,405 Alten* .................................................. 263,780
879 Altran Technologies SA .................................. 214,484
1,365 Avenir Telecom* ......................................... 475,445
331 Bouygues SA ............................................. 262,256
10,180 Business Objects SA - ADR* .............................. 1,012,910
850 Cap Gemini SA ........................................... 230,182
1,440 Coheris Atix* ........................................... 148,404
1,460 Consodata SA* ........................................... 109,810
1,520 Devoteam SA* ............................................ 237,082
4,760 FI System* .............................................. 444,097
1,290 France Telecom SA ....................................... 222,192
4,965 Genesys* ................................................ 270,807
12,835 Genset - ADR* ........................................... 416,937
2,546 GFI Informatique ........................................ 443,157
1,425 Groupe Steria SCA* ...................................... 285,125
4,600 Integra SA* ............................................. 161,060
431 Publicis SA ............................................. 230,957
140 Self Trade* ............................................. 1,767
6,545 Stmicroelectronics NV - NY SHS .......................... 1,225,142
4,860 Unilog SA ............................................... 622,707
5,760 Wavecom SA - ADR* ....................................... 656,640
-----------
7,934,941
-----------
GERMANY: 17.4%
1,460 Adva AG Optical Networking* ............................. 905,304
900 Aixtron AG .............................................. 206,690
1,285 Biodata Information Tech AG* ............................ 489,387
2,350 Brokat Infosystems AG* .................................. 295,706
745 Comroad AG* ............................................. 109,429
1,910 Consors Discount Broker AG* ............................. 268,303
3,100 DCI Database For Commerce and Industry AG* .............. 272,908
920 Deutsche Beteiligungs AG ................................ 32,441
2,415 EM TV & Merchandising AG ................................ 196,428
1,410 Emprise Management Consulting AG* ....................... 209,805
4,100 Fluxx.Com AG* ........................................... 294,247
2,630 Infineon Technologies AG* ............................... 143,071
1,915 Intershop Communications AG* ............................ 971,206
80 Ision Internet AG* ...................................... 7,923
1,645 MorphoSys AG* ........................................... 448,619
2,165 Norcom Information Technology AG* ....................... 227,989
1,210 Parsytec Pattern AG* .................................... 259,358
1,820 ricardo.de AG* .......................................... 247,301
4,590 Singulus Technologies AG* ............................... 452,174
3,760 Steag Hamatech AG* ...................................... 202,204
8,045 SZ Testsysteme AG* ...................................... 202,926
2,410 Telegate AG* ............................................ 269,817
4,060 Telesens AG - Reg* ...................................... 174,748
13,445 TFG Venture Capital AG & Co.* ........................... 591,299
3,255 Tiscon AG Infosystems* .................................. 337,012
1,420 United Internet AG* ..................................... 399,487
-----------
8,215,782
-----------
12
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS at March 31, 2000
--------------------------------------------------------------------------------
Shares Value
------ -----
HONG KONG: 1.8%
3,365 China Telecom (Hong Kong) Ltd. - ADR* ................... $ 596,446
2,655 China.com Corporation - CL A* ........................... 215,055
-----------
811,501
-----------
INDIA: 0.6%
3,200 ICICI Bank Ltd. - ADR* .................................. 46,800
860 Infosys Technologies - ADR .............................. 165,980
1,580 Satyam Infoway Limited - ADR* ........................... 84,728
-----------
297,508
-----------
IRELAND: 0.4%
4,375 Trintech Group PLC - ADR* ............................... 170,625
-----------
ISRAEL: 0.5%
6,420 TTI Team Telecom International Ltd.* .................... 211,860
-----------
ITALY: 3.8%
14,655 Buffetti SpA ............................................ 392,654
74,985 C.I.R. SpA .............................................. 306,386
20,121 Gruppo Editoriale L'Espresso ............................ 394,895
560 I.Net SpA* .............................................. 94,312
5,765 Monadori (Arnoldo) Editore SpA .......................... 147,015
655 Tiscali SpA* ............................................ 458,169
-----------
1,793,431
-----------
JAPAN: 3.3%
960 Murata Manufacturing Company, Ltd ....................... 233,530
8 NetOne Systems Co., Ltd. ................................ 288,597
6,420 NIKON Corporation ....................................... 246,622
8 NTT DoCoMo, Inc. ........................................ 328,377
340 ORACLE Corporation Japan ................................ 285,088
1,210 Tokyo Electron Limited .................................. 182,860
-----------
1,565,074
-----------
NETHERLANDS: 3.8%
3,880 ASM Lithography Holding N.V.* ........................... $ 433,590
16,140 Core Laboratories N.V.* ................................. 469,069
1,960 Getronics N.V. .......................................... 149,854
4,140 KPNQuest N.V.* .......................................... 224,595
1,710 QIAGEN N.V.* ............................................ 232,560
5,400 United Pan-Europe Communications N.V.* .................. 267,638
-----------
1,777,306
-----------
SINGAPORE: 2.2%
5,015 Chartered Semiconductor Manufacturing Ltd. - ADR* ....... 472,664
51,000 Datacraft Asia Limited .................................. 476,850
6,560 Venture MFG (Singapore) Ltd. ............................ 90,126
-----------
1,039,640
-----------
SPAIN: 2.3%
65,020 TelePizza SA* ........................................... 572,402
6,390 Terra Networks SA* ...................................... 514,543
-----------
1,086,945
-----------
SWEDEN: 3.1%
2,380 Effnet Group AB* ........................................ 173,542
3,890 Telefonaktiebolaget LM Ericsson AB - ADR ................ 364,931
22,380 Framtidsfabriken AB* .................................... 546,549
3,070 HIQ International AB* ................................... 230,250
9,262 Information Highway AB* ................................. 84,687
520 Telelogic AB* ........................................... 46,944
-----------
1,446,903
-----------
SWITZERLAND: 6.8%
1,477 Distefora Holding AG* ................................... 746,184
167 ESEC Holding AG* ........................................ 400,752
10,380 Fantastic Corp - CTFS* .................................. 305,428
1,280 Logitech International SA* .............................. 809,094
1,300 Micronas Semiconductor - Reg* ........................... 655,981
295 Sez Holding AG - Reg .................................... 255,488
-----------
3,172,927
-----------
13
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS at March 31, 2000
--------------------------------------------------------------------------------
Shares Value
------ -----
UNITED KINGDOM: 19.6%
11,015 ARM Holdings PLC* ....................................... $ 665,988
2,490 Autonomy Corporation PLC* ............................... 423,300
12,310 Axon Group PLC* ......................................... 285,342
3,920 Baltimore Technologies PLC* ............................. 537,808
12,165 CellTech Group PLC* ..................................... 220,462
9,520 CMG PLC ................................................. 822,149
11,575 COLT Telecom Group PLC* ................................. 551,198
5,100 Filtronic PLC ........................................... 152,551
16,832 Infobank International Holdings PLC* .................... 691,441
3,895 Jazztel PLC - ADR* ...................................... 315,252
23,040 Logica PLC .............................................. 772,238
5,320 NDS Group PLC - SPONS ADR* .............................. 375,060
92,200 Pace Micro Technology PLC ............................... 1,385,556
4,315 Psion PLC ............................................... 286,500
9,240 SEMA Group PLC .......................................... 184,552
43,460 The Sage Group PLC ...................................... 487,749
155,312 Vodafone AirTouch PLC ................................... 863,477
23,635 XKO Group PLC ........................................... 169,672
-----------
9,190,295
-----------
UNITED STATES: 1.4%
2,435 CellPoint, Inc.* ........................................ 146,100
3,910 MIH Ltd.* ............................................... 238,510
2,090 OpenTV Corp.* ........................................... 247,404
-----------
632,014
-----------
TOTAL COMMON STOCKS: (cost $33,962,544) ........................... 44,485,419
-----------
SHORT-TERM INVESTMENTS: 4.3%
$2,031,521 UMB Money Market Fiduciary (cost $2,031,521) ........... $ 2,031,521
-----------
TOTAL INVESTMENTS (cost $35,994,065): 99.0% ....................... 46,516,940
Other Assets less Liabilities: 1.0% ............................... 444,369
-----------
NET ASSETS: 100.0% $46,961,309
===========
*Non-income producing security.
See accompanying Notes to Financial Statements.
14
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS at March 31, 2000 (Continued)
% of
Industry Net Assets
-------- ----------
Advertising Agencies ................................................ 1.3
Applications Software ............................................... 4.9
Banking ............................................................. 0.1
Broadcast Services .................................................. 0.4
Building & Construction ............................................. 0.6
CableTV ............................................................. 1.0
Cellular Telecommunications ......................................... 4.1
Communications Software ............................................. 1.7
Computer Components ................................................. 1.4
Computer Data Security .............................................. 2.3
Computer Integrated Systems ......................................... 3.1
Computer Services ................................................... 8.5
Computer Software ................................................... 1.9
Computer Peripherals ................................................ 1.7
Consulting Services ................................................. 1.5
Data Processing Management .......................................... 1.1
E-Commerce .......................................................... 1.1
Electronic Components ............................................... 8.2
Electronic Equipment ................................................ 3.0
Electronic Measurement Instrument ................................... 0.4
Engineering / R&D Services .......................................... 0.5
Enterprise Software ................................................. 2.8
Finance - Investment Banker ......................................... 0.6
Industrial Automation ............................................... 1.2
Internet Content .................................................... 1.6
Internet Software ................................................... 10.0
Machinery ........................................................... 1.4
Media ............................................................... 0.5
Medical - Biomedical ................................................ 2.3
Medical - Products .................................................. 0.5
Oil - Field Services ................................................ 1.0
Photo Equipment & Supplies .......................................... 0.5
Power Supply Equipment .............................................. 0.6
Publishing - Newspapers ............................................. 1.8
Retail .............................................................. 2.0
Software Tools ...................................................... 0.4
Telecom Services .................................................... 5.9
Telecommunications Equipment ........................................ 9.3
Telephone - Integrated .............................................. 0.5
Therapeutics ........................................................ 0.5
Transactional Software .............................................. 0.4
Venture Capital ..................................................... 1.3
Wireless Equipment .................................................. 0.8
-----
Total Investments in Securities ..................................... 94.7
SHORT-TERM INVESTMENTS .............................................. 4.3
OTHER ASSETS LESS LIABILITIES ....................................... 1.0
-----
NET ASSETS .......................................................... 100.0%
=====
See accompanying Notes to Financial Statements.
15
<PAGE>
DUNCAN-HURST TECHNOLOGY FUND
WILLIAM H. "BEAU" DUNCAN, JR.
Portfolio Manager
FUND OBJECTIVE & STRATEGY
The Duncan-Hurst Technology Fund seeks to provide long-term capital growth
primarily through investment in stocks of technology companies. The adviser
seeks to identify companies with accelerating earnings growth and positive
company fundamentals that it believes will benefit from advances or improvements
in technology. Investments may include companies in Internet-related, software,
computer hardware, computer networking, and semiconductor or telecommunication
industries.
MARKET REVIEW
Duncan-Hurst Technology Fund posted impressive returns over the last two
quarters. The Fund outperformed the Pacific Stock Exchange Technology Index with
a cumulative total return since inception (September 30, 1999) of 158.90% versus
85.15%.* The current revolution in communication infrastructure and services
continued to lead the Fund's performance. The sectors that most contributed to
the performance were communication semiconductors, bandwidth enablers and
computer software. In addition, the continued strong growth trends in wireless
communications coupled with new service and application offerings have
positively affected performance.
Looking ahead, we see some potential for short-term pressures on the technology
sector that may cause fluctuations in performance. During this period of
increased volatility, we expect to migrate toward larger capitalization and
predictable growth technology stocks. However, despite any near-term volatility
of the technology stocks, we view the long-term fundamentals and current
economic environment as positive for enabling continued accelerating revenues
and earnings growth.
----------
* Total return stated above is for the Class R Shares of the Fund and was
achieved during favorable market conditions. Investors should not expect
that such a favorable return can be consistently achieved.
16
<PAGE>
DUNCAN-HURST TECHNOLOGY FUND CLASS R
Value of $10,000 vs PSE Technology Index
Cumulative Total Return
Period Ended March 31, 2000
Since Inception (9/30/99) ....... 158.90%
Duncan-Hurst Technology PSE Technology
Fund Class R Index
------------ -----
10,000 10,000
12,400 10,589
14,720 12,114
21,220 15,488
20,040 15,153
29,200 18,609
25,890 18,515
Past performance is not predictive of future performance.
The Pacific Stock Exchange ("PSE") Technology index is a price-weighted,
broad-based index comprised of 100 listed and over-the-counter stocks from
different industries such as computer hardware, software development,
semiconductors, networking, communications, data storage and processing. The PSE
Technology index is unmanaged and returns include reinvested dividends.
17
<PAGE>
DUNCAN-HURST TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS at March 31, 2000
--------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS: 97.8%
APPLICATIONS SOFTWARE: 4.4%
644 Oracle Corp.* .......................................... $ 50,272
2,331 Siebel Systems, Inc.* .................................. 278,409
------------
328,681
------------
CIRCUITS: 3.3%
394 ANADIGICS, Inc.* ....................................... 26,004
2,295 Micrel, Inc.* .......................................... 220,320
------------
246,324
------------
COMPUTER DATA SECURITY: 2.7%
1,188 Check Point Software Technologies Ltd.* ................ 203,223
------------
COMPUTER NETWORKING: 4.8%
600 Cisco Systems, Inc.* ................................... 46,388
1,202 Juniper Networks, Inc.* ................................ 316,802
------------
363,190
------------
COMPUTER SOFTWARE: 1.3%
709 Micromuse, Inc.* ....................................... 98,418
------------
COMPUTER STORAGE DEVICES: 9.7%
2,107 Brocade Communications Systems, Inc.* .................. 377,811
386 EMC Corp.* ............................................. 48,250
2,332 VERITAS Software Corp.* ................................ 305,492
------------
731,553
------------
E-COMMERCE: 0.1%
120 Ventro Corp.* .......................................... 6,795
------------
ELECTRONIC COMPONENTS: 13.6%
2,170 Applied Micro Circuits Corp.* .......................... 325,636
3,486 Atmel Corp.* ........................................... 179,965
1,099 Conexant Systems, Inc.* ................................ 78,029
1,317 Micron Technology, Inc.* ............................... 165,942
677 PMC-Sierra, Inc.* ...................................... 137,896
979 Qlogic Corp.* .......................................... 132,655
------------
1,020,123
------------
FIBER OPTICS: 4.7%
1,646 SDL, Inc.* ............................................. 350,392
------------
INTERNET SOFTWARE: 16.9%
890 Ariba, Inc.* ........................................... 186,566
2,071 BroadVision, Inc.* ..................................... 92,936
2,186 Digex, Inc.* ........................................... 242,509
2,155 Exodus Communications, Inc.* ........................... 302,778
1,194 Inktomi Corp.* ......................................... 232,830
1,300 TIBCO Software, Inc.* .................................. 105,950
1,034 Vitria Technology, Inc.* ............................... 104,240
------------
1,267,809
------------
SEMICONDUCTORS: 3.6%
854 Broadcom Corp. - CL A* ................................. 207,415
452 Intel Corp. ............................................ 59,636
------------
267,051
------------
SOFTWARE TOOLS: 3.5%
3,327 Mercury Interactive Corp.* ............................. 263,665
------------
TELECOMMUNICATIONS EQUIPMENT: 16.6%
2,522 Advanced Fibre Communication, Inc.* .................... 158,098
1,233 Comverse Technology, Inc.* ............................. 233,037
1,974 Copper Mountain Networks, Inc.* ........................ 161,745
1,687 Digital Lightwave, Inc.* ............................... 105,121
1,272 Ditech Communications Corp.* ........................... 134,911
1,031 Efficient Networks, Inc.* .............................. 160,578
2,466 JDS Uniphase Corp.* .................................... 297,307
------------
1,250,797
------------
TELEPHONE-INTEGRATED: 4.2%
2,550 NEXTLINK Communications, Inc. - CL A* .................. 315,403
------------
18
<PAGE>
DUNCAN-HURST TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS at March 31, 2000 (Continued)
--------------------------------------------------------------------------------
Shares Value
------ -----
WIRELESS COMMUNICATIONS EQUIPMENT: 8.4%
2,141 RF Micro Devices, Inc.* ............................. $ 287,697
625 Sprint Corp. (PCS Group)* ........................... 40,820
2,345 VoiceStream Wireless Corp.* ......................... 302,065
-----------
630,582
-----------
TOTAL COMMON STOCKS
(cost $6,842,780) ................................. 7,344,006
-----------
SHORT-TERM INVESTMENTS: 32.9%
$2,470,169 UMB Money Market Fiduciary
(cost $2,470,169) .................................. $ 2,470,169
-----------
TOTAL INVESTMENTS (cost $9,312,949): 130.7% ...................... 9,814,175
Liabilities in excess of Other Assets: (30.7%) ................... (2,307,748)
-----------
NET ASSETS : 100.0% ............................................ $ 7,506,427
===========
----------
* Non-income producing security.
19
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES at March 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Aggressive Large Cap International
Growth Growth-20 Growth Technology
Fund Fund Fund Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at cost ......... $30,157,321 $1,648,656 $35,994,065 $ 9,312,949
=========== ========== =========== ===========
Investments in securities, at value......... $36,603,764 $2,093,749 $46,516,940 $ 9,814,175
Foreign currency ........................... -- -- 284 --
Receivables:
Dividends and interest ................... 6,488 773 13,106 1,699
Investment securities sold ............... 4,970,686 140,495 1,727,031 713,342
Fund shares sold ......................... 110,701 15,989 1,107,601 2,500
Due from Advisor ......................... 6,364 26,968 -- 6,265
Other assets ............................... 15,099 10,715 7,180 2,683
----------- ---------- ----------- -----------
Total assets ........................... 41,713,102 2,288,689 49,372,142 10,540,664
----------- ---------- ----------- -----------
LIABILITIES
Payables:
Administration fees ...................... 10,273 2,554 12,771 1,684
Advisory fees ............................ -- -- 53,998 --
Distribution fees ........................ 6,563 1,033 3,394 2,259
Fund shares redeemed ..................... 75,645 -- 5,154 --
Funds advanced by custodian .............. 1,844 29 1,376 2,142
Investment securities purchased .......... 5,024,999 117,626 2,252,649 3,001,268
Accrued expenses ........................... 49,124 29,546 81,491 26,884
----------- ---------- ----------- -----------
Total liabilities ........................ 5,168,448 150,788 2,410,833 3,034,237
----------- ---------- ----------- -----------
NET ASSETS ................................. $36,544,654 $2,137,901 $46,961,309 $ 7,506,427
=========== ========== =========== ===========
</TABLE>
20
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES at March 31, 2000 (Continued)
<TABLE>
<CAPTION>
Aggressive Large Cap International
Growth Growth-20 Growth Technology
Fund Fund Fund Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
COMPONENTS OF NET ASSETS
Paid-in capital ................................ $26,835,134 $ 1,466,954 $24,548,591 $6,734,765
Accumulated net realized gain on investments
and foreign currency .......................... 3,263,077 225,854 11,899,150 270,436
Net unrealized appreciation on investments
and foreign currency .......................... 6,446,443 445,093 10,513,568 501,226
----------- ----------- ----------- ----------
Net assets ................................ $36,544,654 $ 2,137,901 $46,961,309 $7,506,427
=========== =========== =========== ==========
CLASS R
Net assets applicable to shares outstanding.... $11,210,182 $ 2,137,901 $ 7,993,145 $5,298,009
Shares outstanding ............................ 500,496 110,725 372,950 204,638
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE ............... $ 22.40 $ 19.31 $ 21.43 $ 25.89
=========== =========== =========== ==========
CLASS I
Net assets applicable to shares outstanding.... $25,334,472 $38,968,164 $2,208,418
Shares outstanding ............................ 1,127,896 1,823,069 85,292
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE ................................... $ 22.46 $ 21.38 $ 25.89
=========== =========== ==========
</TABLE>
See accompanying Notes to Financial Statements.
21
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF OPERATIONS for the period ended March 31, 2000
<TABLE>
<CAPTION>
Aggressive Large Cap International
Growth Growth-20 Growth Technology
Fund (1) Fund (2) Fund (3) Fund (4)
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income Dividends ............................. $ 2,214 $ 913 $ 33,083 $ 4
Interest ..................................... 26,022 1,651 35,742 3,052
--------- --------- --------- ---------
Total income .............................. 28,236 2,564 68,825 3,056
--------- --------- --------- ---------
Expenses
Advisory fees ................................ 130,315 8,027 276,680 10,159
Distribution fees,
Class R .................................... 13,566 2,007 4,696 2,540
Administration fees .......................... 43,806 27,616 50,045 10,000
Custody fees ................................. 24,585 8,497 85,758 7,599
Fund accounting fees ......................... 28,171 23,745 39,029 7,999
Transfer agent fees .......................... 61,849 43,383 29,708 7,100
Audit fees ................................... 14,052 14,052 13,998 14,000
Reports to shareholders ...................... 4,738 3,126 2,800 1,276
Registration expense ......................... 3,404 1,981 699 468
Trustee fees ................................. 4,015 3,561 5,099 1,410
Legal fees ................................... 4,015 3,015 2,701 2,000
Miscellaneous expenses ....................... 8,713 720 7,900 1,748
Insurance expense ............................ 184 118 376 100
--------- --------- --------- ---------
Total expenses ............................. 341,413 139,848 519,489 66,399
Less: fees waived and expenses absorbed..... (166,895) (127,984) (187,219) (51,294)
--------- --------- --------- ---------
Net expenses ............................. 174,518 11,864 332,270 15,105
--------- --------- --------- ---------
NET INVESTMENT LOSS .................... (146,282) (9,300) (263,445) (12,049)
========= ========= ========= =========
</TABLE>
22
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF OPERATIONS for the period ended March 31, 2000
<TABLE>
<CAPTION>
Aggressive Large Cap International
Growth Growth-20 Growth Technology
Fund (1) Fund (2) Fund (3) Fund (4)
---------- -------- ----------- --------
<S> <C> <C> <C> <C>
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments and
foreign currency ............................. $ 3,409,359 $ 235,154 $12,162,595 $ 282,485
----------- ----------- ----------- -----------
Net unrealized appreciation on
investments and foreign currency ............. 6,446,443 445,093 10,513,568 501,226
----------- ----------- ----------- -----------
Net realized and unrealized gain
on investments and foreign currency .......... 9,855,802 680,247 22,676,163 783,711
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................... $ 9,709,520 $ 670,947 $22,412,718 $ 771,662
=========== =========== =========== ===========
</TABLE>
Class R Class I
------- -------
(1) Commenced operations on: March 31, 1999 October 19, 1999
(2) Commenced operations on: March 31, 1999 N/A
(3) Commenced operations on: June 30, 1999 June 30, 1999
(4) Commenced operations on: September 30, 1999 March 30, 2000
See accompanying Notes to Financial Statements.
23
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Period Ended March 31, 2000
<TABLE>
<CAPTION>
Aggressive Large Cap International
Growth Growth-20 Growth Technology
Fund (1) Fund (2) Fund (3) Fund (4)
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS FROM:
OPERATIONS
Net investment loss ........................ $ (146,282) $ (9,300) $ (263,445) $ (12,049)
Net realized gain on investments and
foreign currency .......................... 3,409,359 235,154 12,162,595 282,485
Net unrealized appreciation on
investments and foreign currency .......... 6,446,443 445,093 10,513,568 501,226
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ........... 9,709,520 670,947 22,412,718 771,662
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold
Class R .................................... 10,403,349 1,874,031 9,855,974 5,391,680
Class I .................................... 20,792,778 -- 30,937,246 2,250,000
Cost of shares redeemed
Class R .................................... (3,057,728) (407,077) (3,042,228) (906,915)
Class I .................................... (1,303,265) -- (13,202,401) --
------------ ------------ ------------ ------------
Net increase in net assets derived
from net change in outstanding
shares (a) ................................ 26,835,134 1,466,954 24,548,591 6,734,765
------------ ------------ ------------ ------------
TOTAL INCREASE IN NET ASSETS .......... 36,544,654 2,137,901 46,961,309 7,506,427
NET ASSETS
Beginning of period ...................... -- -- -- --
------------ ------------ ------------ ------------
END OF PERIOD ............................ $ 36,544,654 $ 2,137,901 $ 46,961,309 $ 7,506,427
============ ============ ============ ============
</TABLE>
24
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Period Ended March 31, 2000 (Continued)
(a) A summary of capital share transactions is as follows:
Aggressive Large Cap International
Growth Growth-20 Growth Technology
Fund (1) Fund (2) Fund (3) Fund (4)
---------- ---------- -------- --------
Class R Shares
Shares sold ......... 726,298 136,165 497,550 234,953
Shares redeemed ..... (225,802) (25,440) (124,600) (30,315)
---------- ---------- --------- --------
NET INCREASE ..... 500,496 110,725 372,950 204,638
========== ========== ========= ========
Class I Shares
Shares sold ......... 1,188,677 2,432,601 85,292
Shares redeemed ..... (60,781) (609,532) --
--------- --------- --------
NET INCREASE ..... 1,127,896 1,823,069 85,292
========= ========= ========
Class R Class I
------- -------
(1) Commenced operations on: March 31, 1999 October 19, 1999
(2) Commenced operations on: March 31, 1999 N/A
(3) Commenced operations on: June 30, 1999 June 30, 1999
(4) Commenced operations on: September 30, 1999 March 30, 2000
25
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the period
<TABLE>
<CAPTION>
International Technology
Aggressive Large Cap Growth Fund Fund
Growth Fund Growth-20 Fund June 30, 1999+ September 30, 1999+
Year Ended Year Ended through through
Class R March 31, 2000 March 31, 2000 March 31, 2000 March 31, 2000
------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 10.00 $ 10.00 $ 10.00 $ 10.00
------- ------- ------- -------
Income from investment operations:
Net investment loss ............................ (0.14) (0.08) (0.07) (0.06)
Net realized and unrealized gain
on investments ................................ 12.54 9.39 11.50 15.95
------- ------- ------- -------
Total from investment operations ................ 12.40 9.31 11.43 15.89
------- ------- ------- -------
Net asset value, end of period .................. $ 22.40 $ 19.31 $ 21.43 $ 25.89
======= ======= ======= =======
Total return .................................... 124.00% 93.10% 114.30%** 158.90%**
Ratios/supplemental data:
Net assets, end of period (millions) ........... $ 11.2 $ 2.1 $ 8.0 $ 5.3
Ratio of expenses to average net assets:
Before fees waived and expenses absorbed ..... 2.77% 17.40% 2.58%* 6.48%*
After fees waived and expenses absorbed ...... 1.50% 1.48% 1.73%* 1.48%*
Ratio of net investment loss to average
net assets:
Before fees waived and expenses absorbed ..... (2.55%) (17.08%) (2.27%)* (6.18%)*
After fees waived and expenses absorbed ...... (1.28%) (1.16%) (1.42%)* (1.18%)*
Portfolio turnover rate ...................... 239.99% 247.49% 161.42%** 97.84%**
</TABLE>
See accompanying Notes to Financial Statements.
26
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the period (Continued)
<TABLE>
<CAPTION>
Aggressive International Technology
Growth Fund Growth Fund Fund
October 19, 1999+ June 30, 1999+ March 30, 2000
through through through
Class I March 31, 2000 March 31, 2000 March 31, 2000
------- -------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period ............... $ 11.53 $ 10.00 $ 26.38
------- ------- -------
Income from investment operations:
Net investment loss ............................. (0.07) (0.13) (0.00)^
Net realized and unrealized gain
(loss) on investments ........................... 11.00 11.51 (0.49)
------- ------- -------
Total from investment operations ................... 10.93 11.38 (0.49)
------- ------- -------
Net asset value, end of period ..................... $ 22.46 $ 21.38 $ 25.89
======= ======= =======
Total return ....................................... 94.80%** 113.80%** (1.86%)**
Ratios/supplemental data:
Net assets, end of period (millions) .............. $ 25.3 $ 39.0 $ 2.2
Ratio of expenses to average net assets:
Before fees waived and expenses absorbed .......... 2.52%* 2.33%* 6.23%*
After fees waived and expenses absorbed ........... 1.25%* 1.48%* 1.23%*
Ratio of net investment loss to average net assets:
Before fees waived and expenses absorbed .......... (2.30%)* (2.02%)* (5.93%)*
After fees waived and expenses absorbed ........... (1.03%)* (1.17%)* (0.93%)*
Portfolio turnover rate ......................... 239.99%** 161.42%** 97.84%**
</TABLE>
----------
* Annualized.
** Not Annualized.
+ Commencement of operations.
^ Amount represents less than $0.01 per share.
See accompanying Notes to Financial Statements.
27
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION
Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap Growth-20 Fund,
Duncan-Hurst International Growth Fund and Duncan-Hurst Technology Fund (the
"Funds") are each a series of shares of beneficial interest of Professionally
Managed Portfolios (the ") and are registered under the Investment Company Act
of 1940 (the "1940 Act") as open-end management investment companies.
Duncan-Hurst Aggressive Growth Fund Class R and Class I commenced operations on
March 31, 1999 and October 19, 1999, respectively. Duncan-Hurst Large Cap
Growth-20 Fund, a non-diversified fund, Class R commenced operations on March
31, 1999. Duncan-Hurst International Growth Fund Class R and Class I commenced
operations on June 30, 1999. Duncan-Hurst Technology Fund Class R and Class I
commenced operations on September 30, 1999 and March 30, 2000, respectively. 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. Securities traded on a national securities
exchange or Nasdaq are valued at the last reported sales price at the
close of regular trading on each day that the exchanges are open for
trading; 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 stated 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. FOREIGN CURRENCY. Foreign currency amounts, other than the cost of
investments, are translated into U.S. dollar values based upon the
spot exchange rate at the close of regular trading. The cost of
investments is translated at the rates of exchange prevailing on the
dates the portfolio securities were acquired. The Funds include
foreign exchange gains and losses from dividend receivable and other
foreign currency denominated payables and receivables in realized and
unrealized gain (loss) on investments and foreign currency. The Funds
do not isolate that portion of realized and unrealized gain (loss) on
investments resulting from changes in foreign exchange rates on
investments from fluctuations arising from changes in the market price
of securities for
28
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
financial reporting purposes. Fluctuations in foreign exchange rates
on investments are thus included with net realized and unrealized gain
(loss) on investments and foreign currency.
C. 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.
D. SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS. Security
transactions are accounted for on the trade date. The cost of
securities sold is determined on a specific identification basis.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis.
E. 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.
F. RECLASSIFICATION OF CAPITAL ACCOUNTS. The Funds account and report for
distributions to shareholders in accordance with the American
Institute of Certified Public Accountant's Statement of Position 93-2:
Determination, Disclosure, and Financial Statement Presentation of
Income, Capital and Return of Capital Distributions by Investment
Companies. For the year ended March 31, 2000, each Fund decreased
accumulated net realized gain on investments and foreign currency by
the following amount due to each of the Funds' experiencing a net
investment loss during the year:
Decrease
Decrease Accumulated Net
Accumulated Net Realized Gain on
Investment Loss Investments
--------------- -----------
Duncan-Hurst Aggressive Growth Fund $146,282 $(146,282)
Duncan-Hurst Large Cap Growth-20 Fund 9,300 (9,300)
Duncan-Hurst International Growth Fund 263,445 (263,445)
Duncan-Hurst Technology Fund 12,049 (12,049)
29
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
Duncan-Hurst Capital Management Inc. (the "Adviser") provides the Funds
with investment management services under an Investment Advisory Agreement. The
Adviser furnishes all investment advice, office space, certain administrative
services and most of the personnel needed by the Funds. As compensation for its
services, the Adviser is entitled to a monthly fee at the annual rate of 1.00%
for Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap Growth-20 Fund
and Duncan-Hurst Technology fund and 1.25% for Duncan-Hurst International Growth
Fund based upon the average daily net assets of the Funds. For the period ended
March 31, 2000, the advisory fees incurred were $130,315, $8,027, $276,680 and
$10,159 for Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap
Growth-20 Fund, Duncan-Hurst International Growth Fund and Duncan-Hurst
Technology Fund, respectively.
The Funds are responsible for their own operating expenses. The Adviser has
contractually agreed to limit the Funds' total operating expenses by reducing
all or a portion of their fees and reimbursing the Funds' for expenses,
excluding interest and tax expense, so that their ratio of expenses to average
net assets will not exceed the following:
Prior to Effective
6/30/99 6/30/99
------- -------
Class R Class R Class I
------- ------- -------
Duncan-Hurst Aggressive Growth Fund 2.00% 1.48% 1.23%
Duncan-Hurst Large Cap Growth-20 Fund 2.00% 1.48% N/A
Duncan-Hurst International Growth Fund N/A 1.73% 1.48%
Duncan-Hurst Technology Fund N/A 1.48% 1.23%
In the case of the Funds' initial period of operations any fee withheld or
voluntarily reduced and/or any Fund expense absorbed by the Adviser pursuant to
an agreed upon expense cap shall be reimbursed by the Fund to the Adviser, if so
requested by the Adviser, anytime before the end of the fifth fiscal year
following the year to which the fee waiver and/or expense absorption relates,
provided the aggregate amount of the Funds' current operating expenses for such
fiscal year does not exceed the applicable limitation on Fund expenses.
30
<PAGE>
For the period ended March 31, 2000, the Adviser waived fees and absorbed
expenses as follows:
Fees Expenses
Waived Absorbed
------ --------
Duncan-Hurst Aggressive Growth Fund $130,315 $36,580
Duncan-Hurst Large Cap Growth-20 Fund 8,027 119,957
Duncan-Hurst International Growth Fund 187,219 --
Duncan-Hurst Technology Fund 10,159 41,135
The Funds must pay their current ordinary expenses before the Adviser is
entitled to any reimbursement of fees and/or expenses. Any such reimbursement is
also contingent upon Board of Trustees review and approval prior to the time the
reimbursement is initiated.
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 Funds' expenses and reviews the
Funds' expense accruals. For its services, the Administrator receives a monthly
fee from each Fund at the following annual rates:
Up to $50 million 0.20% of average daily net assets, subject to minimum fee
$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
Minimum Fee:
Duncan-Hurst Aggressive Growth Fund $40,000
Duncan-Hurst Large Cap Growth-20 Fund 30,000
Duncan-Hurst International Growth Fund 35,000
Duncan-Hurst Technology Fund 30,000
For the period ended March 31, 2000, Duncan-Hurst Aggressive Growth Fund,
Duncan-Hurst Large Cap Growth-20 Fund, Duncan-Hurst International Growth Fund
and Duncan-Hurst Technology Fund, incurred $43,806, $27,616, $50,045 and $10,000
in administration fees, respectively.
First Fund Distributors, Inc. (the "Distributor") acts as the Funds'
principal underwriter in a continuous public offering of the Funds' shares. The
Distributor is an affiliate of the Administrator.
31
<PAGE>
Certain officers and trustees of the Trust are also officers and/or
directors of the Administrator and Distributor.
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 Adviser as Distribution Coordinator at an annual rate of up to 0.25% of
the average daily net assets of Class R shares 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 period ended March 31, 2000, Duncan-Hurst
Aggressive Growth Fund, Duncan-Hurst Large Cap Growth-20 Fund, Duncan-Hurst
International Growth fund, Duncan-Hurst Technology Fund paid fees of $13,566,
$2,007, $4,696 and $2,540, respectively, to the Adviser.
NOTE 5 - PURCHASES AND SALES OF SECURITIES
The cost of purchases, and the proceeds from the sales of securities, other
than short-term investments, for the period ended March 31, 2000 are as follows:
Purchases Sales
--------- -----
Duncan-Hurst Aggressive Growth Fund $58,440,699 $32,674,905
Duncan-Hurst Large Cap Growth-20 Fund 3,450,934 2,025,227
Duncan-Hurst International Growth Fund 70,687,417 48,879,999
Duncan-Hurst Technology Fund 9,181,333 2,621,037
NOTE 6 - TAX BASIS APPRECIATION
At March 31, 2000, the basis of securities for federal tax purposes was the
same as their cost for financial reporting purposes. Unrealized appreciation and
depreciation of securities were as follows:
<TABLE>
<CAPTION>
Gross Gross Net
Unrealized Unrealized Unrealized
Appreciation Depreciation Appreciation
------------ ------------ ------------
<S> <C> <C> <C>
Duncan-Hurst Aggressive Growth Fund $8,304,708 $(1,858,265) $6,446,443
Duncan-Hurst Large Cap Growth-20 Fund 491,578 (46,485) 445,093
Duncan-Hurst International Growth Fund 11,614,908 (1,092,033) 10,522,875
Duncan-Hurst Technology Fund 777,279 (276,053) 501,226
</TABLE>
32
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders of
Duncan-Hurst Aggressive Growth Fund
Duncan-Hurst Large Cap Growth-20 Fund
Duncan-Hurst International Growth Fund
Duncan-Hurst Technology Fund
The Board of Trustees of
Professionally Managed Portfolios
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Duncan-Hurst Aggressive Growth Fund,
Duncan-Hurst Large Cap Growth-20 Fund, Duncan-Hurst International Growth Fund
and Duncan-Hurst Technology Fund, each a series of shares of Professionally
Managed Portfolios, as of March 31, 2000, and the related statements of
operations, changes in net assets and financial highlights for the periods then
ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits 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, 2000, by correspondence with the custodian and brokers. Where brokers have
not replied to our confirmation requests, we carried out other appropriate
auditing procedures. 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
Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap Growth-20 Fund,
Duncan-Hurst International Growth Fund and Duncan-Hurst Technology Fund as of
March 31, 2000, the results of their operations, changes in their net assets and
the financial highlights for the periods then ended in conformity with generally
accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
May 5, 2000
33
<PAGE>
DUNCAN-HURST CAPITAL MANAGEMENT INC.
AGGRESSIVE GROWTH FUND
LARGE CAP GROWTH-20 FUND
INTERNATIONAL GROWTH FUND
TECHNOLOGY FUND
c/o National Financial Data Services, Inc.
330 W. 9th Street
Kansas City, MO 64105
or
P.O. Box 219284
Kansas City, MO 64121-9284
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
