TRENT
EQUITY
FUND
--------------------------------------------------------------------------------
ANNUAL REPORT
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For the Year Ended
August 31, 2000
<PAGE>
TRENT EQUITY FUND
ANNUAL REPORT
FOR THE YEAR ENDING AUGUST 31, 2000
September 30, 2000
Dear Shareholder:
Trent Equity Fund generated a 7.34% return for the fiscal year ending
August 31, 2000 compared to a gain of 16.32% for the S&P 500 with dividends
reinvested. The year was a roller coaster with our technology/internet positions
performing solidly from November 1999 through March 2000 then subsequently
dropping off from March through the end of July 2000. August fortunately saw a
resurgence of technology/internet holdings. Since the end of 1994 one segment of
the stock market has performed well to the detriment of the other. In 1995, 1996
and 1997 Old Economy stocks, including both consumer brand names and financial
services companies, did well, leaving many technology issues behind. In 1998 and
1999 technology issues surged ahead to the significant detriment of Old Economy
stocks. The year 2000 has seen a major retracement in the prices of
technology/internet issues due to both fear of overvaluation and increasing
interest rates. Old Economy stocks have firmed during the past six months but
they have not risen to offset the drop in technology/internet issues. As a
result of recent stock price moves, we believe that both Old Economy and New
Economy stocks are poised to do well going forward. They should rise in tandem
instead of offsetting each other and the Trent Equity Fund is well diversified
and well positioned to take advantage of what we believe will be a steady if not
spectacular rise in both the Old Economy and New Economy segments of the market.
We had several positions in the New Economy stocks prior to the drop and they
have experienced unrealized losses to date. However, we continue to like these
companies and still own the preponderance of them. In the meantime, we have also
added some Old Economy names to take advantage of greatly reduced prices due to
what we believe to be transitory problems. It is one of our strategies to take
advantage of the short term views of many investors who overreact on the
downside to what likely are short term problems or disappointments.
1
<PAGE>
ACTIVITY IN CURRENT HOLDINGS
The best performers during the six-month period ending August 31, 2000 in order
of dollar impact were American Express, up 30%; Associates First Capital, up
55%; Pharmanetics, up 88% and Clear Channel Communications, up 10%. American
Express continues to add customers both in travel services and asset management
and has been very successful in exploiting the internet while Associates First
Capital's outlook is improving as the market is recognizing its good growth
prospects in home equity loans, equipment financing, successful integration of
acquisitions and strengthening foreign operations, particularly in Japan.
Pharma-netics continues to form strong alliances in the testing of coagulation
drugs with major pharmaceutical companies while Clear Channel Communications
recently acquired AMFM, which has been a long-term holding of the fund. Clear
Channel is the largest radio station and billboard group in the US.
The poorest performers in order of dollar impact were CMGI, down 66%; ITXC Corp,
down 73% and Terayon Communications, down 52%. In each of these cases, these
stocks were caught up in the technology/internet downdraft. However, in each
case, business is good and growing dramatically.
NEW HOLDINGS
There were several new purchases during the six month period including
Caterpillar, CenturyTel, Dana Corp, Honeywell, JNI Corp and ArvinMeritor.
* Caterpillar is the major global manufacturer of construction equipment and
diesel engines.
* CenturyTel is a rural-based wireline and wireless telephone company.
* Dana Corp is a major manufacturer of auto parts.
* Honeywell is a large manufacturer of aerospace equipment and components,
residential and commercial building controls and automotive parts.
* JNI Corp manufactures components for internet storage networks.
* ArvinMeritor manufactures automotive parts.
The fund added to positions in Associates First Capital, Citrix Systems,
Equifax, Healtheon-WebMD and Quokka Sports.
2
<PAGE>
SIGNIFICANT REALIZED GAINS AND LOSSES
In order of dollar magnitude, the largest realized gains during the six month
period were taken in Qualcomm (up 1167%); Terra Networks (up 181%); partial
liquidations of Terayon Communications (up 119%), Alpha Industries (up 105%),
AMFM (up 161%) American Express (up 289%), Agilent Technologies (up 103%) and
CMGI (up 166%).
* Qualcomm's outlook for domination of third generation wireless has dimmed
somewhat.
* Terra Networks is experiencing increased competition.
* The partial liquidations of Terayon Communication and Alpha Industries were
to cut back in those positions and to provide a source of funds for the
purchase of Honeywell and Caterpillar.
* The partial liquidations of AMFM, American Express and CMGI were to cut
back slightly in those positions.
* Agilent Technologies profit outlook has diminished.
In order of dollar impact, the largest realized losses were in partial
liquidation of Mattel, (down 45%) and a complete liquidation of Gartner Group
(down 33%). Gartner Group has not been converting to internet-based services and
tracking of data as well as we initially thought it would.
We thank you for being an investor in Trent Equity Fund.
TRENT CAPITAL MANAGEMENT, INC.
3
<PAGE>
TRENT EQUITY FUND
Value of $10,000 vs S&P 500 Index
Average Annual Total Return
Period Ended August 31, 2000
1 Year............................... 7.34%
5 Year............................... 16.86%
10 Year.............................. 15.01%
Since Inception (8/13/90)*........... 14.60%
S&P 500 Index
Trent Equity Fund with Income
----------------- -----------
Aug-90 10,000 10,000
Dec-90 9,840 7,496
Jun-91 12,900 8,563
Dec-91 15,280 9,779
Jun-92 13,980 9,704
Dec-92 15,790 10,528
Jun-93 15,157 11,027
Dec-93 16,640 11,586
Jun-94 15,421 11,181
Dec-94 14,890 11,733
Jun-95 17,305 14,103
Dec-95 17,014 16,137
Jun-96 19,898 17,758
Dec-96 20,487 19,847
Jun-97 23,666 23,923
Dec-97 25,648 26,465
Jun-98 30,515 31,131
Dec-98 30,227 34,027
Jun-99 39,608 38,230
Dec-99 52,176 41,174
Jun-00 39,607 40,997
Aug-00 39,366 42,866
Past performance is not predictive of future performance. The S&P 500 Index is a
broad market-weighted average of U.S. blue-chip companies. The index is
unmanaged and returns include reinvested dividends.
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* Performance for the Trent Equity Fund reflects the performance of the Trent
Partners LP, whose assets were transferred into the Trent Equity Fund on
September 11, 1992, net of actual fees and expenses.
4
<PAGE>
TRENT EQUITY FUND
SCHEDULE OF INVESTMENTS at August 31, 2000
SHARES VALUE
------ -----
COMMON STOCKS: 92.8%
AUTO/TRUCK PARTS AND EQUIPMENT: 2.7%
4,500 ArvinMeritor, Inc. $ 74,250
3,000 Dana Corporation 74,062
----------
148,312
----------
COMMERCIAL SERVICES: 7.3%
11,920 Central Parking Corp. 230,950
2,650 Equifax Inc. 67,409
10,375 ServiceMaster Co. (The) 100,507
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398,866
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COMPUTERS - PERIPHERALS: 2.2%
1,000 Hewlett-Packard Co. 120,750
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COMPUTERS - SOFTWARE: 8.1%
4,400 Citrix Systems, Inc.* 96,800
1,850 JNI Corp.* 124,181
5,400 Wind River Systems, Inc.* 220,050
----------
441,031
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CONSUMER PRODUCTS: 3.5%
6,400 Gillette Company (The) 192,000
----------
DIVERSIFIED MANUFACTURING: 3.0%
4,235 Honeywell International, Inc. 163,312
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ELECTRONIC COMPONENTS: 5.0%
2,852 Alpha Industries, Inc.* 143,848
2,356 Terayon Communication Systems, Inc.* 130,758
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274,606
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FINANCIAL SERVICES: 15.7%
7,350 American Express Co. 434,569
9,800 Associates First Capital Corp. - Class A 275,625
1,000 Bank of America Corp. 53,562
2,250 Federal Home Loan Mortgage Corp. 94,781
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858,537
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FOOD & BEVERAGE: 1.1%
1,550 H. J. Heinz Co. 59,094
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HOME FURNISHINGS: 1.9%
5,800 Leggett & Platt, Inc. 102,588
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HOUSEHOLD PRODUCTS: 4.7%
10,000 Newell Rubbermaid, Inc. 259,375
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INTERNET SERVICES: 6.4%
5,480 CMGI, Inc.* 245,230
14,850 Quokka Sports, Inc.* 102,094
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347,324
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INTERNET SOFTWARE: 4.2%
7,200 iBasis, Inc.* 149,400
1,600 RealNetworks, Inc.* 77,900
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227,300
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MACHINERY - GENERAL: 3.5%
5,158 Caterpillar Inc. 189,557
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MEDIA AND BROADCASTING: 8.6%
6,486 Clear Channel Communications, Inc.* 469,424
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MEDICAL SUPPLIES: 6.3%
1,800 American Home Products Corp. 97,538
875 Johnson & Johnson 80,445
8,000 PharmaNetics, Inc.* 164,000
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341,983
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RETAIL: 5.8%
7,600 Claire's Stores, Inc. 149,625
8,218 Dollar General Corp. 168,983
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318,608
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TELECOMMUNICATIONS: 2.8%
2,800 CenturyTel, Inc. 80,675
2,400 Global Crossing Ltd.* 72,150
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152,825
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TOTAL COMMON STOCKS
(cost $4,083,912) 5,065,492
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5
<PAGE>
TRENT EQUITY FUND
SCHEDULE OF INVESTMENTS at August 31, 2000, Continued
PRINCIPAL
AMOUNT VALUE
------ -----
SHORT-TERM INVESTMENT: 7.5%
MONEY MARKET INVESTMENT: 7.5% $ 410,644
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Firstar Stellar Treasury
Fund (cost $410,644) $ 410,644
TOTAL INVESTMENTS IN SECURITIES
(cost $4,494,556 +): 100.3% 5,476,136
Liabilities in excess of Other Assets: (0.3)%
(16,608)
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NET ASSETS: 100.0% $5,459,528
==========
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* Non-income producing security.
+ At August 31, 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 $1,267,753
Gross unrealized depreciation (286,173)
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Net unrealized appreciation $ 981,580
==========
See accompanying Notes to Financial Statements.
6
<PAGE>
TRENT EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES at August 31, 2000
ASSETS
Investments in securities, at value (cost $4,494,556 ) ........ $5,476,136
Receivables:
Dividends and interest ...................................... 9,572
Prepaid expenses .............................................. 1,008
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Total assets .............................................. 5,486,716
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LIABILITIES
Payables:
Administration fees ......................................... 2,541
Distribution fees ........................................... 2,334
Due to advisor .............................................. 426
Fund shares redeemed ........................................ 150
Accrued expenses .............................................. 21,737
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Total liabilities ......................................... 27,188
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NET ASSETS .................................................... $5,459,528
==========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($5,459,528/370,910 shares outstanding; unlimited number of
shares authorized without par value) ...................... $ 14.72
==========
COMPONENTS OF NET ASSETS
Paid-in capital ............................................... $3,873,713
Accumulated net realized gain on investments .................. 604,235
Net unrealized appreciation on investments .................... 981,580
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Net assets ................................................ $5,459,528
==========
See accompanying Notes to Financial Statements.
7
<PAGE>
TRENT EQUITY FUND
STATEMENT OF OPERATIONS For the Year Ended August 31, 2000
INVESTMENT INCOME
Income
Dividends .................................................... $ 46,590
Interest ..................................................... 3,256
---------
Total income .............................................. 49,846
---------
Expenses
Advisory fees ................................................ 70,711
Administration fees .......................................... 30,000
Fund accounting fees ......................................... 17,827
Audit fees ................................................... 16,973
Distribution fees ............................................ 11,323
Transfer agent fees .......................................... 9,179
Legal fees ................................................... 5,239
Trustee fees ................................................. 3,933
Reports to shareholders ...................................... 3,555
Custody fees ................................................. 2,950
Miscellaneous ................................................ 279
Insurance expense ............................................ 150
---------
Total expenses ............................................ 172,119
Less: fees waived ......................................... (49,142)
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Net expenses .............................................. 122,977
---------
NET INVESTMENT LOSS ..................................... (73,131)
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments ............................. 648,752
Net unrealized depreciation on investments ................... (236,141)
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Net realized and unrealized gain on investments ........... 412,611
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .... $ 339,480
=========
See accompanying Notes to Financial Statements.
8
<PAGE>
TRENT EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
AUGUST 31, 2000 AUGUST 31, 1999
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss ........................ $ (73,131) $ (41,680)
Net realized gain on investments ........... 648,752 796,793
Net unrealized appreciation (depreciation)
on investments ........................... (236,141) 940,957
----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ....................... 339,480 1,696,070
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gain ..................... (584,644) (725,130)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net
change in outstanding shares (a) ......... 490,452 995,731
----------- -----------
TOTAL INCREASE IN NET ASSETS ............ 245,288 1,966,671
NET ASSETS
Beginning of year .......................... 5,214,240 3,247,569
----------- -----------
END OF YEAR ................................ $ 5,459,528 $ 5,214,240
=========== ===========
(a) A summary of capital share transactions is as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
AUGUST 31, 2000 AUGUST 31, 1999
------------------------- ----------------------
Shares Value Shares Value
-------- ----------- ------- ---------
<S> <C> <C> <C> <C>
Shares sold 136,535 $ 2,521,834 45,236 $ 666,688
Shares issued in reinvestment
of distributions 34,061 564,398 60,162 693,068
Shares redeemed (144,204) (2,595,780) (26,471) (364,025)
-------- ----------- ------- ---------
Net increase 26,392 $ 490,452 78,927 $ 995,731
======== =========== ======= =========
</TABLE>
See accompanying Notes to Financial Statements.
9
<PAGE>
TRENT EQUITY FUND
FINANCIAL HIGHLIGHTS For a capital share outstanding throughout each year
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,
--------------------------------------------------
2000 1999 1998 1997 1996
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................ $15.13 $12.23 $11.90 $ 9.86 $10.24
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................. (0.20) (0.12) (0.16) (0.10) (0.06)
Net realized and unrealized gain
on investments ................................ 1.50 5.73 0.49 2.14 0.67
------ ------ ------ ------ ------
Total from investment operations .................. 1.30 5.61 0.33 2.04 0.61
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net realized gain .......................... (1.71) (2.71) -- -- (0.99)
------ ------ ------ ------ ------
Net asset value, end of year ...................... $14.72 $15.13 $12.23 $11.90 $ 9.86
====== ====== ====== ====== ======
Total return ...................................... 7.34% 52.81% 2.77% 20.69% 7.23%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (millions) ................ $ 5.5 $ 5.2 $ 3.2 $ 3.3 $ 3.0
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed ........ 2.80% 3.36% 3.08% 3.48% 3.63%
After fees waived and expenses absorbed ......... 2.00% 2.00% 2.00% 2.00% 2.10%
RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed ........ (1.99%) (2.31%) (2.23%) (2.25%) (2.15%)
After fees waived and expenses absorbed ......... (1.19%) (0.94%) (1.15%) (0.76%) (0.62%)
Portfolio turnover rate ........................... 85.69% 53.71% 41.14% 43.81% 59.33%
</TABLE>
See accompanying Notes to Financial Statements.
10
<PAGE>
TRENT EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION
Trent Equity 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 a
diversified, open-end management investment company. The Fund began operations
on September 2, 1992. The investment objective of the Fund is to seek capital
appreciation, both realized and unrealized. The Fund seeks to achieve its
objective by investing primarily in equity securities.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.
A. SECURITY VALUATION. Investments in securities traded on a national
securities exchange or included in the Nasdaq 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 federal 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. TRENT
EQUITY FUND
11
<PAGE>
TRENT EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, Continued
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
Trent Capital Management, Inc. (the "Advisor") provides the Fund with
investment management services under an Investment Advisory Agreement. The
Advisor furnished all investment advice, office space and certain administrative
services, and most of the personnel needed by the Fund. As compensation for its
services, the Advisor is entitled to a monthly fee at the annual rate of 1.15%
based upon the average daily net assets of the Fund. For the year ended August
31, 2000, the Fund incurred $70,711 in advisory fees.
The Fund is responsible for its own operating expenses. The Advisor has
contractually agreed to limit the Fund's total operating expenses by reducing
all or portion of its fees and reimbursing the Fund for expenses, excluding
interest and tax expense, so that its ratio of expenses to average net assets
will not exceed 2.00%. Any fee waived 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, provided the aggregate amount of
the Fund's current operating expenses for such fiscal year does not exceed the
applicable limitation on Fund expenses. For the year ended August 31, 2000, the
Advisor waived fee of $49,142.
At August 31, 2000, the cumulative unreimbursed amount paid and/or waived
by the Advisor on behalf of the Fund that may be reimbursed was $142,182. The
Advisor may recapture a portion of the above amount no later than the dates as
stated below:
AUGUST 31,
----------------------------------
2001 2002 2003
---- ---- ----
Trent Equity Fund $32,846 $60,194 $49,142
The Fund must pay its current ordinary operating expenses before the
Advisor is entitled to any reimbursement. 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
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
12
<PAGE>
TRENT EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, Continued
and payment of Fund expenses and reviews the Fund's expense accruals. For its
services, the Administrator receives a monthly fee at the following annual rate:
Under $15 million $30,000
$15 to $50 million 0.20% of average daily net assets
$50 to $100 million 0.15% of average daily net assets
$100 to $150 million 0.10% of average daily net assets
Over $150 million 0.05% of average daily net assets
For the year ended August 31, 2000, the Fund incurred $30,000 in
administration fees.
First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Fund's shares. The
Distributor is an affiliate of the Administrator and receives no compensation
for its services.
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 will pay a fee to
the Advisor as Distribution Coordinator at an annual rate of 0.25% of the
average daily net assets of the Fund. The fee is paid to the Advisor as
reimbursement for, or in anticipation of, expenses incurred for
distribution-related activity. For the year ended August 31, 2000, the Fund paid
to the Advisor, as Distribution Coordinator, $11,323.
NOTE 5 - INVESTMENT TRANSACTIONS
The cost of purchases and the proceeds from sales of securities, other than
short-term investments, were $5,132,393 and $5,635,893, respectively.
NOTE 6 - SPECIAL MEETING OF SHAREHOLDERS
A special meeting of shareholders of the Fund was held at the offices of
Trent Capital Management, Inc. on December 15, 1999. The shareholders of the
Fund approved an adoption of the Fund's Distribution Plan pursuant to Rule 12b-1
of the Investment Company Act of 1940 with 232,877 shares voted "For", 4,101
shares voted "Against" and 860 shares abstained.
13
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS OF TRENT
EQUITY FUND AND
THE BOARD OF TRUSTEES OF
PROFESSIONALLY MANAGED PORTFOLIOS
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Trent Equity Fund (a series of Professionally
Managed Portfolios) as of August 31, 2000, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of August 31, 2000, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Trent
Equity Fund as of August 31, 2000, the results of its operations for the year
then ended, the changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended, in conformity with generally accepted accounting principles.
TAIT, WELLER & BAKER
PHILADELPHIA, PENNSYLVANIA
OCTOBER 4, 2000
14
<PAGE>
--------------------------------------------------------------------------------
Advisor
TRENT CAPITAL MANAGEMENT, INC.
3101 North Elm Street Suite 150
Greensboro, North Carolina 27455 (336)
282-9302
Distributor
FIRST FUND DISTRIBUTORS, INC.
4455 East Camelback Road Suite 261E
Phoenix, Arizona 85018
Custodian FIRSTAR BANK, N.A.
425 Walnut Street
Cincinnati, Ohio 45201
Transfer Agent
ICA FUND SERVICES CORPORATION
4455 East Camelback Road, Suite 261E
Phoenix, AZ 85108
Auditors
TAIT, WELLER & BAKER
8 Penn Center Plaza, Suite 800
Philadelphia, Pennsylvania 19103
Legal Counsel
PAUL, HASTINGS, JANOFSKY & WALKER LLP
345 California Street, 29th Floor
San Francisco, California 94104
--------------------------------------------------------------------------------
This report is intended for shareholders of the Fund and may not be used as
sales literature unless preceded or accompanied by a current prospectus.
Past performance results shown in this report should not be considered a
representation of future performance. Share price and returns will fluctuate so
that shares, when redeemed, may be worth more or less than their original cost.
Statements and other information herein are dated and are subject to change.
