WOMEN'S EQUITY MUTUAL FUND
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SEMI-ANNUAL REPORT
[LOGO]
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For the Six Months Ended
September 30, 2000
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WOMEN'S EQUITY MUTUAL FUND
October 15, 2000
Dear Shareholders:
Women's Equity Mutual Fund is now seven years old. We continue to evaluate our
strategies and objectives to make sure our goals remain valid in this changing
world. We believe that raising the social and economic status of women in the
workplace is an important step in enabling women to play a vital role in solving
world problems. By monitoring corporate responsibility, and through social
activism, we try to influence corporations to improve their policies toward
women. Recent political events in Yugoslavia have shown that activism can work,
even in an international arena. Dire problems in the Middle East also remind us
that conflict cannot be resolved through force and more bloodshed. We have to
believe that hope and persistence will overcome pessimism, passivity and hate.
As of September 30, 2000 the Fund's average total returns are as follows:
One Three Five From Inception
Year Years Years 10/1/93
---- ----- ----- -------
Women's Equity
Mutual Fund(1) 12.66% 14.54% 16.76% 13.82%
With rising oil prices, weaker European currencies and disappointing earnings
reports, the stock market will likely continue to see considerable volatility
over the next few months. The most significant price corrections have been in
those stocks, primarily in the technology sector, with very high price/earnings
ratios. The expectation of future earnings growth implied by these ratios is
clearly unsustainable. However, economic fundamentals on the whole are still
quite positive, with low inflation and steady growth in most sectors. Unless
world events cause further instability, our market outlook for the next few
months is optimistic.
(1) Past performance is not a guarantee of future returns. Share price and
returns fluctuate and investors may have a gain or loss when shares are
redeemed.
1
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The Women's Equity Mutual Fund performance for the six months ended September
30, 2000 has benefited from a focus on those stocks with reasonable valuations,
and thus less susceptible to earnings disappointments. In addition, unusual and
extreme disparities in market valuations have allowed our managers to select
many stocks with strong growth prospects. We continue to be overweighted
relative to the broad market in healthcare and financial stocks, and
underweighted in the energy, basic materials, and technology sectors. While
market volatility is still a concern, there are no signs yet which would lead us
to significantly restructure the portfolio.
As always, we appreciate your investment in the Women's Equity Mutual Fund and
welcome your comments and suggestions.
Sincerely yours,
/s/ Linda C.Y. Pei
Linda C.Y. Pei
President
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WOMEN'S EQUITY MUTUAL FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 (Unaudited)
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Shares Value
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COMMON STOCKS: 98.1%
Computers - Services: 1.7%
4,000 Affiliated Computer Services, Inc.* $ 199,500
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Consumer Products and Services: 5.6%
6,000 Avon Products, Inc. 245,250
2,500 Colgate-Palmolive Co. 118,000
9,375 Dollar General Corp. 157,031
4,000 Gillette Co. 123,500
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643,781
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Durable Goods: 1.7%
4,000 Harley-Davidson, Inc. 191,500
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Electronic Measuring Instruments: 0.6%
1,524 Agilent Technologies, Inc.* 74,581
724 Agilent Technologies,* Inc. - Rights 0
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74,581
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Financial Services: 16.5%
3,750 American International Group, Inc. 358,828
4,000 Bank of America Corp. 209,500
3,000 Charles Schwab Corp. 106,500
3,800 Federal National Mortgage Association 271,700
10,000 Fleet Boston Corp. 390,000
7,000 MBNA Corp. 269,500
1,400 Wachovia Corp. 79,362
5,000 Wells Fargo & Co. 229,687
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1,915,077
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Food - Wholesale: 1.8%
4,500 Sysco Corp. 208,406
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Healthcare: 17.9%
6,600 Biomet, Inc.* 231,000
3,000 Cardinal Health, Inc. 264,562
2,000 Guidant Corp.* 141,375
4,500 Johnson & Johnson, Inc. 422,719
5,800 Medtronic, Inc. 300,512
4,500 Merck & Co., Inc. 334,969
4,500 Schering-Plough Corp. 209,250
4,000 Stryker Corp. 171,750
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2,076,137
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Home Furnishings: 3.1%
7,000 Herman Miller, Inc. 224,437
8,500 Leggett & Platt, Inc. 134,406
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358,843
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Industrials: 1.2%
3,800 Praxair, Inc. 142,025
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Instruments - Scientific: 1.4%
1,800 Waters Corp.* 160,200
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Investment Management: 1.4%
3,500 T. Rowe Price Associates, Inc. 164,281
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Oil & Gas Producers: 3.2%
7,000 BP Amoco PLC, ADR 371,001
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Producer Products: 4.7%
6,000 Illinois Tool Works, Inc. 335,250
6,000 Teleflex, Inc. 206,250
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541,500
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Publishing - Newspapers: 1.2%
4,000 McClatchy Co. 140,750
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Retail: 6.0%
8,500 BJ's Wholesale Club, Inc.* 290,062
5,000 Costco Wholesale Corp.* 174,688
1,500 Home Depot, Inc. 79,594
7,000 TJX Companies, Inc. 157,500
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701,844
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Technology: 18.1%
2,600 Applied Materials, Inc.* 154,213
2,600 Automatic Data Processing, Inc. 173,875
5,400 Cisco Systems, Inc.* 298,350
1,700 Hewlett-Packard Co. 164,900
5,900 Intel Corp.* 245,588
1,500 International Business Machines Corp. 168,750
4,500 Microsoft Corp.* 271,125
2,300 Oracle Corp.* 181,125
1,800 Sanmina Corp.* 168,525
1,500 Sun Microsystems, Inc.* 175,125
2,000 Texas Instruments, Inc. 94,375
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2,095,951
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WOMEN'S EQUITY MUTUAL FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 (Unaudited) - (Continued)
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Shares Value
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Telecommunications: 5.1%
2,345 ALLTEL Corp. $ 122,380
4,200 BellSouth Corp. 169,050
3,500 CenturyTel, Inc. 95,375
4,000 SBC Communications, Inc. 200,000
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586,805
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Telecommunications - Equipment: 1.3%
5,000 Lucent Technologies, Inc. 152,813
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Telecommunications - Long Distance: 2.5%
6,500 AT&T Corp. 190,938
3,400 MCI WorldCom, Inc.* 103,275
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294,213
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Transportation: 1.9%
9,000 Southwest Airlines Co. 218,250
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Wireless Equipment: 1.2%
3,500 Nokia Corp., ADR 139,344
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TOTAL COMMON STOCKS
(cost $8,046,001) 11,376,802
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Principal
Amount Value
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SHORT-TERM INVESTMENT: 1.9%
Money Market Investment: 1.9%
$226,103 Firstar Stellar Treasury Fund
(cost $226,103) $ 226,103
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TOTAL INVESTMENTS IN SECURITIES
(cost $8,272,104+): 100.0% 11,602,905
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Liabilities in excess of
Other Assets: (0.0)% (3,897)
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NET ASSETS: 100.0% $ 11,599,008
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* Non-income producing security.
+ At September 30, 2000, the basis of investments for federal income tax
purposes was the same as their cost for financial reporting purposes.
Unrealized appreciation and depreciation were as follows:
Gross unrealized appreciation $ 3,834,336
Gross unrealized depreciation (503,535)
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Net unrealized appreciation $ 3,330,801
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See accompanying Notes to Financial Statements.
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WOMEN'S EQUITY MUTUAL FUND
STATEMENT OF ASSETS AND LIABILITIES at September 30, 2000 (Unaudited)
ASSETS
Investments in securities, at value (cost $8,272,104 ) $ 11,602,905
Receivables:
Dividends and interest 10,639
Fund shares sold 1,175
Prepaid expenses 7,975
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Total assets 11,622,694
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LIABILITIES
Payables:
Distribution fees 7,360
Administration fees 2,384
Due to Advisor 1,391
Accrued expenses 12,551
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Total liabilities 23,686
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NET ASSETS $ 11,599,008
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Net asset value, offering and redemption price
per share ($11,599,008/566,504
shares outstanding; unlimited number
of shares authorized without par value) $ 20.47
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COMPONENTS OF NET ASSETS
Paid-in capital $ 7,722,377
Accumulated net investment loss (28,677)
Accumulated net realized gain on investments 574,507
Net unrealized appreciation on investments 3,330,801
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Net assets $ 11,599,008
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See accompanying Notes to Financial Statements.
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WOMEN'S EQUITY MUTUAL FUND
STATEMENT OF OPERATIONS For the Six Months Ended September 30, 2000 (Unaudited)
INVESTMENT INCOME
Income
Dividends .................................................... $ 56,050
Interest ..................................................... 4,960
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Total income ............................................... 61,010
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Expenses
Advisory fees .................................................. 58,067
Administration fees ............................................ 14,959
Distribution fees .............................................. 14,517
Transfer agent fees ............................................ 11,009
Fund accounting fees ........................................... 10,139
Audit fees ..................................................... 8,819
Custody fees ................................................... 5,972
Registration expense ........................................... 5,971
Reports to shareholders ........................................ 2,841
Legal fees ..................................................... 2,635
Trustee fees ................................................... 2,375
Miscellaneous .................................................. 1,106
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Total expenses ............................................. 138,410
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Less: fees waived .......................................... (51,309)
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Net expenses ............................................... 87,101
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Net investment loss .................................... (26,091)
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments ............................... 415,349
Net unrealized depreciation on investments ..................... (558,380)
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Net realized and unrealized loss on investments............. (143,031)
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Net decrease in net assets resulting from operations.... $(169,122)
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See accompanying Notes to Financial Statements.
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WOMEN'S EQUITY MUTUAL FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended Year Ended
September 30, 2000# March 31, 2000
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<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss ....................................... $ (26,091) $ (48,909)
Net realized gain on investments .......................... 415,349 343,492
Net unrealized appreciation (depreciation)
on investments............................................ (558,380) 710,174
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Net increase (decrease) in net assets
resulting from operations............................ (169,122) 1,004,757
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DISTRIBUTIONS TO SHAREHOLDERS
From net realized gain .................................... -- (519,847)
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CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived
from net change in outstanding shares (a) ................ (40,213) 1,567,045
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Total increase (decrease) in net assets................ (209,335) 2,051,955
NET ASSETS
Beginning of period ....................................... 11,808,343 9,756,388
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End of period ............................................. $ 11,599,008 $ 11,808,343
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</TABLE>
(a) A summary of capital share transactions is as follows
Six Months Ended Year Ended
September 30, 2000# March 31, 2000
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Shares Value Shares Value
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Shares sold 32,164 $ 662,931 122,816 $ 2,487,943
Shares issued in reinvestment
of distributions -- -- 25,444 499,980
Shares redeemed (34,361) (703,144) (70,745) (1,420,878)
------ --------- ------ -----------
Net increase (decrease) (2,197) $ (40,213) 77,515 $ 1,567,045
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# Unaudited.
See accompanying Notes to Financial Statements.
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WOMEN'S EQUITY MUTUAL FUND
FINANCIAL HIGHLIGHTS For a capital share of outstanding throughout each period
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, ---------------------------------------------------
2000# 2000 1999 1998 1997 1996
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<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ....................................... $ 20.76 $ 19.86 $ 18.07 $ 12.10 $ 11.22 $ 9.93
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) .................... (0.05) (0.09) (0.06) (0.04) (0.01) 0.01
Net realized and unrealized gain
(loss) on investments .......................... (0.24) 1.94 2.65 6.16 0.90 1.59
------- ------- ------- ------- ------- -------
Total from investment
operations ...................................... (0.29) 1.85 2.59 6.12 0.89 1.60
------- ------- ------- ------- ------- -------
Less distributions:
From net investment income ...................... -- -- -- -- (0.01) (0.31)
------- ------- ------- ------- ------- -------
From net realized gain .......................... -- (0.95) (0.80) (0.15) -- --
------- ------- ------- ------- ------- -------
Total distributions ............................... -- (0.95) (0.80) (0.15) (0.01) (0.31)
Net asset value, end of period .................... $ 20.47 $ 20.76 $ 19.86 $ 18.07 $ 12.10 $ 11.22
======= ======= ======= ======= ======= =======
Total return ...................................... (1.40)%++ 9.60% 14.76% 50.77% 7.92% 16.17%
Ratios/supplemental data:
Net assets, end of period (millions) ............ $ 11.6 $ 11.8 $ 9.8 $ 7.0 $ 4.4 $ 3.3
Ratio of expenses to average net assets:
Before fees waived and expenses absorbed ........ 2.38%+ 2.47% 2.70% 3.12% 4.09% 4.75%
After fees waived and expenses absorbed ......... 1.50%+ 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of net investment income (loss)
to average net assets:
Before fees waived and expenses absorbed ........ (1.33)%+ (1.42)% (1.60)% (1.88)% (2.64)% (1.97)%
After fees waived and expenses absorbed ......... (0.45)%+ (0.45)% 0.40% (0.26)% (0.05)% 1.28%
Portfolio turnover rate ........................... 7.24% 19.32% 16.36% 27.21% 51.13% 120.64%
</TABLE>
+ Annualized.
++ Not annualized
# Unaudited.
See accompanying Notes to Financial Statements.
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WOMEN'S EQUITY MUTUAL FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 - ORGANIZATION
The 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 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 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 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 income tax provision is required.
C. Security Transactions, Dividend Income and Distributions. Security
transactions are accounted for on the trade date. The cost of
securities sold is determined on a first-in, first-out basis. Dividend
income and distributions to shareholders are recorded on the
ex-dividend date.
D. Use of Estimates. The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements. Actual results could differ from those estimates.
E. Reclassification of Capital Accounts. The Fund accounts and reports
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. Women's Equity Mutual Fund
9
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WOMEN'S EQUITY MUTUAL FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
For the year ended March 31, 2000, the Fund decreased paid-in capital
by $48,232 due to the Fund experiencing a net investment loss during
the year. Net realized loss and net assets were not affected by this
change.
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
For the six months ended September 30, 2000, 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% based upon the average
daily net assets of the Fund. For the six months ended September 30, 2000, the
Fund incurred $58,067 in advisory fees.
The Fund is responsible for its own operating expenses. The Advisor has
agreed to limit the Fund's total expenses to not more than 1.50% of average
daily net assets. Any fee withheld and/or any Fund expense absorbed by the
Advisor pursuant to an agreed upon expense cap shall be reimbursed by the Fund
to the Advisor, if so requested by the Advisor, anytime before the end of the
third fiscal year following the year to which the fees waived and expenses
absorbed relate, provided the aggregate amount of the Fund's current operating
expenses for such fiscal year does not exceed the applicable limitation on Fund
expenses. Any such reimbursement is also contingent upon Board of Trustee review
and approval prior to the time the reimbursement is initiated. The Fund must pay
its current ordinary operating expenses before the Advisor is entitled to any
reimbursement. For the six months ended September 30, 2000, the Advisor waived
fees of $51,309. Walden Asset Management, a Division of 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, L.L.C. (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
10
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WOMEN'S EQUITY MUTUAL FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
For the six months ended September 30, 2000, the Fund incurred $14,959 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 activities. For the six months ended September 30, 2000,
the Fund paid fees of $14,517 to the Advisor.
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 six months ended September 30, 2000 were
$831,497 and $1,079,916, respectively.
11
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Advisor
PRO-CONSCIENCE FUNDS, INC.
625 Market Street, 16th Floor
San Francisco, California 94105
(415) 547-9135
(888) 552-9363
*
Distributor
FIRST FUND DISTRIBUTORS, INC.
4455 E. Camelback Road, Suite 261E
Phoenix, Arizona 85018
*
Custodian
FIRSTAR INSTITUTIONAL CUSTODY SERVICES
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
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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.
