DUNCAN-HURST
MUTUAL FUNDS
Semi-Annual Report
September 30, 2000
AGGRESSIVE GROWTH FUND
LARGE CAP GROWTH-20 FUND
TECHNOLOGY FUND
INTERNATIONAL GROWTH FUND
WWW.DUNCAN-HURST.COM
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DUNCAN-HURST MUTUAL FUNDS
Dear Shareholder:
In the last two quarters, the Duncan-Hurst Mutual Funds faced a difficult
market environment for growth stocks. In the second quarter, the markets were
negatively affected by the fear of an economic slowdown due to rising interest
rates engineered by the Federal Reserve. In the third quarter, the key
influences on the financial markets were what is becoming known as "The Three
E's": increasing energy prices, the weakening of the Euro, and a potential U.S.
and global economic slowdown. Value stocks, being perceived as a safe haven in
uncertain times, performed better than growth stocks. Traditionally, our style
has not performed well during periods where growth underperforms value and in
the last two quarters, the Russell 3000 Value outperformed the Russell 3000
Growth by 11.4%.*
Looking ahead over the next six months, we expect an improved market
environment since these negatives have most likely been priced into the market.
At this time, our sector weights remain relatively spread out due to the lack of
dominance of a particular theme. Because there are no dominant themes, stock
selection is more important than ever. We are focusing on companies that can
deliver near-term earnings, even though the economy is slowing. As we look
forward, it is our belief that the economy should reaccelerate at the end of
2001, and growth cyclicals, technology in particular, should anticipate this
acceleration and respond positively sometime over the next several months.
The individual funds results, as well as a more detailed profile of each
Fund, are presented in this semi-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 meet your investment needs.
Sincerely,
/s/ William H. "Beau" Duncan, Jr.
William H. "Beau" Duncan, Jr.
Chairman
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* The Russell 3000 Value Index measures the performance of those Russell 3000
Index companies with lower price-to-book ratios and lower forecasted growth
values. The stocks in this index are also members of either the Russell
1000 Value or the Russell 2000 Value indexes. The Russell 3000 Growth Index
measures the performance of those Russell 3000 Index companies with higher
price-to-book ratios and higher forecasted growth values. The stocks in
this index are also members of either the Russell 1000 Growth or the
Russell 2000 Growth indices.
1
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DUNCAN-HURST AGGRESSIVE GROWTH FUND
FUND & STRATEGY
The 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
The past six months have been difficult for the Aggressive Growth Fund. The
Fund's return for the last six months was -18.7%, while the Russell Midcap
Growth's return was -5.1% for that same time period. Traditionally, our style
has not performed well during periods where growth underperforms value and in
the last two quarters, the Russell Midcap Value Index outperformed the Russell
Midcap Growth Index by 12.9%.
In the second quarter, technology suffered as a whole and poor performance was
widespread. For the most part, stocks were selling off in response to either
fears about the economy slowing and/or concerns about rising interest rates. The
markets also faced uncertainty regarding quarterly earnings for companies that
had delivered outstanding performance for so long. With the combination of these
two market conditions, investors sold most of the tech stocks quickly. We
responded by diversifying our investments across industries and sectors.
We continued diversifying in the third quarter, decreasing our weightings in the
technology sector and increasing our weightings in health care, traditionally a
safe haven during economic uncertainty. A relatively new opportunity that came
to the forefront during the third quarter was the "growth utility." The
opportunity resulted from the increase in demand for power, led in part by the
continuing use and pervasiveness of Internet technology and the growing appetite
for bandwidth. Looking forward, it seems that the market has already discounted
most, if not all, of the macro-economic slowdown. Oil prices, for example, seem
to be peaking, based on actions being taken by OPEC and the White House to
increase supply. As soon as we are comfortable that the market is becoming more
optimistic, we will again concentrate our investments in the traditionally high
growth areas, such as technology, and reduce the more cyclical weightings, such
as health care.
Total return stated above is for the Class R Shares of the Fund. 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. Past performance is not indicative of future
results, share price and returns fluctuate and investors may have a gain or loss
when they redeem shares.
2
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DUNCAN-HURST AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCKS: 98.0%
AUDIO/VIDEO PRODUCTS: 2.7%
14,590 Polycom, Inc.* $ 977,074
-----------
BANKS: 2.0%
11,886 Silicon Valley Bancshares 692,174
-----------
BIOTECHNOLOGY: 3.9%
4,720 Idec Pharmaceuticals Corp.* 827,696
940 Myriad Genetics, Inc.* 80,840
3,990 Protein Design Labs, Inc.* 480,795
-----------
1,389,331
-----------
CIRCUITS: 1.0%
5,296 Micrel, Inc.* 354,832
-----------
COMMERICAL SERVICES: 1.7%
8,660 Plexus Corp.* 610,530
-----------
COMPUTERS: 1.0%
5,510 Infocus Group* 292,030
2,452 Sonicwall, Inc.* 69,882
-----------
361,912
-----------
COMPUTERS - MEMORY DEVICES: 0.2%
510 Storage Networks, Inc.* 52,116
-----------
COMPUTER SOFTWARE: 18.7%
6,190 Advent Softwares, Inc.* 432,526
7,580 Check Point Software Technologies Ltd.* 1,193,850
10,462 Descartes Systems Group, Inc.* 517,869
11,220 Mercury Interactive Corp.* 1,758,735
4,104 Micromuse, Inc.* 824,648
10,190 Peoplesoft, Inc.* 284,683
23,360 Rational Software Corp.* 1,620,600
-----------
6,632,911
-----------
DIVERSIFIED FINANCIAL SERVICES: 1.6%
18,030 Waddell & Reed - Class A 558,930
-----------
ELECTRONICS: 7.1%
3,854 PerkinElmer, Inc. 402,261
10,957 Power One, Inc.* 663,070
16,166 Waters Corp.* 1,438,774
-----------
2,504,105
-----------
ELECTRONIC COMPONENTS: 3.7%
16,010 Flextronics International Ltd.* 1,314,821
-----------
GAS & ELECTRIC UTILITIES: 5.1%
17,370 Calpine Corp.* 1,812,994
-----------
HEALTHCARE - PRODUCTS: 1.1%
3,447 Techne Corp.* 386,064
-----------
HEALTHCARE - SERVICES: 4.2%
5,480 Laboratory Corp. of America* 656,230
7,110 Quest Diagnostics, Inc.* 815,873
-----------
1,472,103
-----------
INDEPENDENT POWER PRODUCER: 3.1%
15,070 NRG Energy, Inc.* 550,055
18,350 Southern Energy, Inc.* 575,731
-----------
1,125,786
-----------
INTERNET: 8.2%
12,298 Freemarkets, Inc.* 702,523
13,867 Commerce One, Inc.* 1,088,560
12,812 Purchasepro, Inc.* 1,125,854
-----------
2,916,937
-----------
INTERNET SOFTWARE: 3.7%
9,188 Cache Flow, Inc.* 1,313,884
-----------
MOTION PICTURE & SERVICES: 3.2%
14,133 Macrovision Corp.* 1,144,773
-----------
METAL FABRICATE/HARDWARE: 0.9%
8,780 Precision Castparts Corp. 336,933
-----------
PHARMACEUTICAL: 3.3%
9,390 Andrx Corp.* 876,791
3,567 MedImmune, Inc.* 275,551
-----------
1,152,342
-----------
PIPELINES: 3.8%
23,546 Dynegy, Inc. - Cl A 1,342,122
-----------
SCHOOLS: 1.7%
14,930 Apollo Group, Inc.* 595,334
-----------
SEMICONDUCTORS: 9.0%
10,235 Capstone Turbine* 708,774
26,007 Cirrus Logic* 1,048,407
3,050 Elantic Semiconductor* 303,856
7,930 Marvell Technology* 611,601
11,966 Semtech Corp.* 516,033
-----------
3,188,671
-----------
3
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DUNCAN-HURST AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 (Unaudited) - (Continued)
--------------------------------------------------------------------------------
SHARES VALUE
--------------------------------------------------------------------------------
TELECOMMUNICATIONS: 7.1%
580 Cosine Communications* $ 32,226
10,905 MRV Communications, Inc.* 494,133
4,880 Natural Microsystems Corp.* 262,529
705 New Focus, Inc.* 55,739
10,553 Newport Corp. 1,680,730
-----------
2,525,357
-----------
TOTAL COMMON STOCKS:
(cost $28,574,916) 34,762,036
-----------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS: 1.5%
$ 528,724 UMB Money Market Fiduciary (cost $528,724) $ 528,724
-----------
TOTAL INVESTMENTS
(cost $29,103,640+): 99.5% 35,290,760
Other Assets less Liabilities: 0.5% 165,891
-----------
NET ASSETS: 100.0% $35,456,651
===========
----------
* 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 $ 7,451,823
Gross unrealized depreciation (1,264,703)
-----------
Net unrealized appreciation $ 6,187,120
===========
See accompanying Notes to Financial Statements.
4
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DUNCAN-HURST LARGE CAP GROWTH-20 FUND
FUND & STRATEGY:
The Large Cap Growth-20 Fund seeks to provide long-term capital growth primarily
through investment in 20-30 larger capitalization growth companies. The adviser
seeks to identify companies with accelerating earnings growth and positive
company fundamentals. Though the process is primarily based upon this bottom-up
process, a top-down analysis is conducted to identify outperforming and
underperforming sectors.
MARKET REVIEW
The Large Cap Growth-20 Fund fell 7.0% during the last six months, outperforming
the Russell 1000 Growth Index which fell 7.9%. In the second quarter, stocks
were negatively impacted by the Fed's ongoing battle with perceived inflation
risks and its attendant raising of short-term borrowing rates, particularly in
April and May. The Fund rebounded in the third quarter, benefiting from holdings
in the technology sector and the energy/electrical power sector. Data storage
remains our favorite technology group, followed by telecommunications equipment.
Computing has ascended from the interior of the corporation where it was
employed primarily in management reporting and accounting functions to a place
of prominence at the edge of the enterprise where it handles strategic, revenue
generating functions like customer relationships and supplier relationships. The
data generated through the operation of these strategic computing systems has
skyrocketed in value.
Our energy weightings increased slightly during the third quarter, as we
acknowledged that the growing use of bandwidth would result in increased
electricity demand. These twin phenomena will change the energy and electric
power sectors of the stock market into secular growth from highly cyclical,
commodities dominated sectors. Power quality will be an emergent, ancillary
industry group. Deregulation of the nation's power markets will slowly reshape
the means by which the rising use of energy is satisfied.
Looking ahead, mild U.S. and global economic deceleration will likely cause a
brief technology shakeout during the 2000 - 2001 transition period. Stock
selection will be crucial. As we exit the third quarter, we are prepared to
benefit from a broader range of stock market themes.
Total return stated above is for the Class R Shares of the Fund. 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. Past
performance is not indicative of future results, share price and returns
fluctuate and investors may have a gain or loss when they redeem shares.
5
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DUNCAN-HURST LARGE CAP GROWTH-20 FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCKS: 97.6%
COMPUTER DATA SECURITY: 3.4%
1,294 Check Point Software Technologies Ltd.* $ 203,805
-----------
COMPUTER NETWORKING: 9.4%
2,529 Cisco Systems, Inc.* 139,727
828 Juniper Networks, Inc.* 181,280
2,058 Sun Microsystems, Inc.* 240,272
-----------
561,279
-----------
COMPUTER SOFTWARE: 9.5%
855 I2 Technologies, Inc.* 159,938
1,738 Oracle Systems Corp.* 136,868
2,420 Siebel Systems, Inc.* 269,376
-----------
566,182
-----------
COMPUTER STORAGE DEVICES: 15.9%
1,557 Brocade Communications 367,452
1,742 Network Appliance, Inc.* 221,887
3,570 EMC Corp.* 353,876
-----------
943,215
-----------
DATA PROCESSING: 3.9%
3,491 Automatic Data Processing 233,461
-----------
DIVERSIFIED FINANCIAL SERVICES: 2.8%
3,068 Citigroup, Inc. 165,864
-----------
ELECTRIC: 4.6%
4,023 AES Corp. 275,576
-----------
ELECTRONIC COMPONENTS: 9.8%
757 Applied Micro Circuits Corp.* 156,746
932 PMC - Sierra, Inc.* 200,613
2,413 Sanmina Corp.* 225,917
-----------
583,276
-----------
HEALTHCARE SERVICES: 4.2%
2,555 Unitedhealth Group, Inc. 252,306
-----------
MANUFACTURING: 3.5%
3,563 General Electric Co. 205,541
-----------
MEDICAL: 1.9%
1,577 Amgen, Inc.* 110,119
-----------
OIL & GAS SERVICES: 4.9%
3,461 Baker Hughes, Inc. 128,490
2,001 Schlumberger Ltd. 164,707
-----------
293,197
-----------
PHARMACEUTICALS: 1.9%
1,288 Cardinal Health 113,586
-----------
PIPELINES: 3.9%
2,671 Enron Corp. 234,046
-----------
RETAIL: 3.0%
3,048 Kohls Corp.* 175,831
-----------
SEMICONDUCTORS: 2.3%
541 Broadcom Corp. - CL A* 131,869
-----------
SOFTWARE TOOLS: 3.4%
1,280 Mercury Interactive Corp.* 200,640
-----------
TELECOMMUNICATIONS: 9.3%
2,122 Ciena Corp.* 260,608
985 Corning, Inc. 292,545
-----------
553,153
-----------
TOTAL COMMON STOCKS:
(cost $4,688,098) 5,802,946
-----------
PRINCIPAL
AMOUNT
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS: 4.3%
$ 257,405 UMB Money Market Fiduciary (cost $257,405) 257,405
-----------
TOTAL INVESTMENTS
(cost $4,945,503+): 101.9% 6,060,351
Liabilities in excess of Other Assets: (1.9)% (113,385)
-----------
NET ASSETS: 100.0% $ 5,946,966
===========
----------
* 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 $ 1,159,519
Gross unrealized depreciation (44,671)
-----------
Net unrealized appreciation $ 1,114,848
===========
See accompanying Notes to Financial Statements.
6
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DUNCAN-HURST TECHNOLOGY FUND
FUND OBJECTIVE & STRATEGY
The 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.
Though the process is primarily based upon this bottom-up process, a top-down
analysis is conducted to identify outperforming and underperforming industries
in the technology sector.
MARKET REVIEW
In the past six months, the Duncan-Hurst Technology Fund declined approximately
12.3%, underperforming the PSE Technology Index (Pacific Stock Exchange
Technology Index) which fell 10.6%.
In the second quarter, underperformance was due in part to overweight positions
in communications, emerging telecom providers and Internet bandwidth enablers.
Evidence of a continuing threat of inflation resulted in further interest rate
increases from the Federal Reserve. Since many of today's faster growing
technology companies are not forecasted to have positive earnings until several
years from now, these interest rate increases contributed to a valuation
compression as the discounted value of their future earnings became impacted by
higher implied discount rates. In response to the market conditions, we moved
into larger cap technology stocks with more predictable growth.
In the third quarter, the Fund outperformed due to significant weightings taken
in software and optical networking. The migration from electrical networking to
optical networking by communications companies positively impacted both optical
networking system and component companies. Although some of these gains were
offset in September, we believe that there is much room for growth in optical
networking. Software companies performed strongly in the latter part of the
third quarter. Electronic procurement, customer relationship, and supply chain
management companies began to benefit from the movement toward Internet
exchanges.
Fears of Federal Reserve interest rate hikes may have subsided, but the third
quarter introduced other concerns regarding the Euro currency,
telecommunications infrastructure spending, and electronic marketplace
potential. In response to these issues, we will put more of a premium on
individual stock selection. In the long-term, we believe that there is going to
be a continued and increased demand for technology in many aspects of the
business, whether it is in hardware, software, or telecommunications.
Total return stated above is for the Class R Shares of the Fund. 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. Past performance is not
indicative of future results, share price and returns fluctuate and investors
may have a gain or loss when they redeem shares.
7
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DUNCAN-HURST TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCKS: 98.9%
AUDIO/VIDEO PRODUCTS: 4.3%
4,800 Polycom, Inc.* $ 321,450
-----------
CIRCUITS: 3.0%
3,370 Micrel, Inc.* 225,790
-----------
COMPUTER DATA SECURITY: 4.9%
2,326 Check Point Software Technologies Ltd.* 366,345
-----------
COMPUTER NETWORKING: 4.7%
1,610 Juniper Networks, Inc.* 352,489
-----------
COMPUTER SOFTWARE: 12.0%
2,273 Adobe Systems, Inc. 352,883
2,281 Descartes Systems Group, Inc.* 112,910
318 Micromuse, Inc.* 63,898
3,289 Siebel Systems, Inc.* 366,107
-----------
895,798
-----------
COMPUTER STORAGE DEVICES: 8.8%
1,165 Brocade Communications Systems, Inc.* 274,940
2,256 EMC Corp.* 223,626
1,223 Network Appliance, Inc.* 155,780
-----------
654,346
-----------
ELECTRONICS: 4.0%
759 PerkinElmer, Inc. 79,221
3,606 Power One, Inc.* 218,219
-----------
297,440
-----------
ELECTRONIC COMPONENTS: 7.2%
1,170 Applied Micro Circuits Corp.* 242,263
1,785 Sanmina Corp.* 167,121
577 PMC-Sierra, Inc.* 124,199
-----------
533,583
-----------
INTERNET: 9.1%
3,934 Commerce One, Inc.* 308,819
2,235 Freemarkets, Inc*. 127,674
2,775 Purchasepro, Inc.* 243,853
-----------
680,346
-----------
INTERNET SOFTWARE: 3.2%
1,649 Ariba, Inc.* 236,245
-----------
MOTION PICTURE & SERVICES: 2.8%
2,570 Macrovision Corp.* 208,170
-----------
PIPELINES: 3.6%
4,781 Dynegy, Inc. - Cl A 272,517
-----------
SEMICONDUCTORS: 11.1%
4,619 Cirrus Logic* 186,203
1,860 Exar Corp.* 225,060
2,809 Integrated Device Technology* 254,215
3,846 Semtech Corp.* 165,859
-----------
831,337
-----------
SOFTWARE TOOLS: 4.9%
2,325 Mercury Interactive Corp.* 364,444
-----------
TELECOMMUNICATIONS EQUIPMENT: 15.3%
2,612 Ciena Corp.* 320,786
1,115 Corning, Inc. 331,155
1,927 MRV Communications, Inc.* 87,317
224 New Focus, Inc.* 17,710
2,415 Newport Corp. 384,626
-----------
1,141,594
-----------
TOTAL COMMON STOCKS:
(cost $6,165,018) 7,381,894
-----------
8
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DUNCAN-HURST TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 (Unaudited) - (Continued)
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS: 4.5%
$338,304 UMB Money Market Fiduciary (cost $338,304) $ 338,304
-----------
TOTAL INVESTMENTS
(cost $6,503,322+): 103.4% 7,720,198
Liabilities in excess of Other Assets: (3.4%) (254,046)
-----------
NET ASSETS: 100.0% $ 7,466,152
===========
----------
* 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 $ 1,404,252
Gross unrealized depreciation (187,376)
-----------
Net unrealized appreciation $ 1,216,876
===========
See accompanying Notes to Financial Statements.
9
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
FUND OBJECTIVE & STRATEGY
The International Growth Fund seeks to provide long-term capital growth
primarily through investment in non-U.S. companies. Our investment approach
combines top-down country analysis with bottom-up company analysis. It
identifies companies experiencing accelerating earnings, rising relative price
strength and positive company fundamentals. The top-down analysis is conducted
to identify the most attractive countries for investment.
MARKET REVIEW
The last six months have been difficult for the Duncan-Hurst International
Growth Fund, which fell 21.4%, while the MSCI EAFE fell 11.7%. The Fund was hurt
in the second quarter by an overweight position in Continental Europe and by
positions in economically sensitive areas such as technology and small-cap
stocks, all of which had previously benefited from the accelerating regional
growth. In response, we reallocated assets towards areas that we believe will
deliver earnings growth. Stocks such as pharmaceuticals, consumer goods, select
financial and technology companies and mid/large cap stocks were purchased.
Given our view that this slowdown will affect all major economies, country
weightings were determined more by stock and sector selection, as our country
outlook was neutral. As a result of these changes, we outperformed the MSCI EAFE
by 2.1% in the third quarter.
Currently, the Fund is fairly diversified as we are still in a high-risk
environment. As the global growth picture becomes clearer and the uncertainties
surrounding oil prices, the Euro currency and technology spending subside, the
Fund will become more aggressive.
Total return stated above is for the Class R Shares of the Fund. 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. Past
performance is not indicative of future results, share price and returns
fluctuate and investors may have a gain or loss when they redeem shares.
10
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCKS: 98.5%
CANADA: 4.8%
2,430 Angiotech Pharmaceutical* $ 96,901
3,760 C-Mac Industries* 216,200
4,550 Descartes Systems Group, Inc.* 226,043
6,200 Ensign Resource Service 216,538
10,180 Exfo Electro Optical Eng* 443,466
11,280 GSI Lumonics, Inc.* 185,547
5,670 Nortel Networks Corp. 337,719
8,000 Precision Drilling* 285,000
3,400 Sierra Wireless, Inc.* 209,812
-----------
2,217,226
-----------
DENMARK: 10.3%
5,200 GN Store Nord A/S* 738,095
1,385 Group 4 Falck 201,503
6,995 I-Data International 773,618
4,940 Neg Micon A/S 262,946
4,890 Novo Nordisk 1,084,520
28,230 Vestas Wind Systems A/S 1,442,521
4,630 William Demant Holding 218,515
-----------
4,721,718
-----------
FRANCE: 13.0%
8,640 Alcatel 552,798
7,435 Aventis 557,718
2,130 Axa 278,199
10,160 Bouygues Offshore 529,006
4,260 Business Objects SA-ADR* 481,646
7,130 Christian Dior 384,140
12,750 Coflexip Sponsored ADR 793,688
6,000 Generale De Geophysique 419,364
1,810 Highwave Optical Tech* 285,921
6,670 Remy Cointreau 203,665
10,050 Sanofi-Synthelabo 540,130
5,000 Societe Television Franca 286,813
4,940 Thomson CSF 208,125
3,950 Wavecom SA-ADR Rep One* 477,950
-----------
5,999,163
-----------
GERMANY: 8.6%
4,960 Adva AG Optical Networking* 470,549
1,790 Aixtron AG 223,682
8,235 D. Logistics AG* 551,595
5,340 Direkt Anlage Bank* 263,903
1,600 Ergo Versicherungsgruppe 239,899
4,830 Intershop Communications AG* 316,489
2,610 Lion Bioscience AG* 257,972
1,525 Muenchener Rueckversicher 454,885
3,720 Sap AG 228,780
7,680 Schering AG 502,220
2,180 Software 198,157
4,550 Telesens, AG - Reg* 232,089
-----------
3,940,220
-----------
HONG KONG: 2.8%
6,520 China Mobile (Hong Kong)* 211,493
1,028,000 China Resources Beijing 212,274
88,000 China Unicom Ltd.* 196,950
1,336,000 Denway Motors* 209,047
26,000 Sun Hung Kai Properties Ltd. 245,097
32,000 Swire Pacific Ltd. 199,464
-----------
1,274,325
-----------
ISRAEL: 1.8%
15,655 Geo Interactive Media Group* 285,852
7,500 Teva Pharmaceuticals 548,906
-----------
834,758
-----------
ITALY: 6.9%
13,155 Autogrill Spa 153,707
25,055 Bulgari S.P.A. 308,449
22,800 Edison S.P.A. 225,033
64,300 Ferretti* 238,328
28,011 Gruppo Editoriale L 'Espresso 338,166
11,280 Luxottica Group S P A 181,890
18,000 Riunione Adriatica di Sicurta S.P.A. (RAS) 236,686
130,100 Saipem S.P.A. 723,323
13,050 San Paolo-IMI S.P.A. 212,136
104,470 UniCredito Italiano S.P.A. 544,871
-----------
3,162,589
-----------
11
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 (Unaudited) - (Continued)
--------------------------------------------------------------------------------
SHARES VALUE
--------------------------------------------------------------------------------
JAPAN: 12.2%
31,000 Anritsu Corporation $ 860,633
31,900 Asahi Glass Co., Ltd. 326,203
11,000 Chugai Pharmaceutical Co. 199,824
58,400 Fujikura Ltd. 480,992
8,000 Fujisawa Pharmaceutical 294,651
7,000 Furukawa Electric Co., Ltd. 193,365
14,000 Hitachi Cable 159,356
101,000 Mitsui O.S.K. Lines Ltd. 223,385
1,500 Moritex Corp. 177,679
9 NetOne Systems Co., Ltd. 255,691
37,000 NGK Spark Plug Co., Ltd. 618,379
65,000 NTN Corp. 240,607
7,000 Pioneer Corp. 285,027
400 Seikoh Giken Co. 179,530
24,000 Sumitomo Electric Industries 414,214
5,000 Suruga Seiki Co. 300,759
42,500 Yokogawa Electric 389,760
-----------
5,600,055
-----------
NETHERLANDS: 1.8%
4,105 Fugro N.V. 235,292
2,970 Jomed N.V. 221,238
3,531 Philips Electronics 151,973
4,725 QIAGEN N.V.* 222,666
-----------
831,169
-----------
NORWAY: 8.7%
10,975 Bergesen 230,902
13,760 Eltek 509,270
65,725 Frontline* 1,024,419
11,460 Nordic American Tanker 247,822
1,255 Opticom* 187,454
20,350 Smedvig ASA-A Shares 399,002
7,610 Tandberg ASA* 224,233
35,845 Tomra Systems 1,178,592
-----------
4,001,694
-----------
SINGAPORE: 1.6%
70,000 Datacraft Asia Limited 581,000
17,000 Venture MFG (Singapore) Ltd. 164,110
-----------
745,110
-----------
SWITZERLAND: 12.8%
1,653 Actelion* 779,446
572 Baloise Holding 555,982
1,530 Credit Suisse Group $ 285,923
118 Julius Baer Holding AG-B 612,052
730 Leica Geosystems* 228,495
1,570 Logitech International 494,145
365 Novartis AG 559,622
49 Phonak Holding 164,430
175 Serono SA 213,637
370 Straumann Holdings 824,173
2,505 The Swatch Group AG 739,152
900 Zurich Allied 416,050
-----------
5,873,107
-----------
UNITED KINGDOM: 11.1%
18,130 ARM Holdings PLC* 201,575
9,910 Autonomy Corp. PLC* 545,050
37,400 BG Group PLC 237,634
35,260 Biocompatibles International PLC* 204,357
12,610 Bookham Technology ADR* 540,654
17,290 CellTech Group PLC* 344,848
12,650 CMG PLC 244,823
7,910 Logica PLC 260,212
40,160 Marconi 549,233
15,040 Matalan PLC 122,302
7,210 NDS Group PLC - Spons ADR* 555,170
45,700 Psion PLC 499,999
12,510 SEMA Group PLC 214,554
3,830 Shire Pharmaceuticals Group PLC* 197,724
27,870 Spirent PLC 276,079
47,410 Xtl Biopharmaceuticals Ltd.* 114,256
-----------
5,108,470
-----------
UNITED STATES: 2.1%
9,410 Decode Genetics* 241,719
9,900 Knightsbridge Tankers 216,562
10,710 Teekay Shipping Marshall 502,701
-----------
960,982
-----------
TOTAL COMMON STOCKS:
(cost $42,611,292) 45,270,586
===========
12
<PAGE>
DUNCAN-HURST INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS at September 30, 2000 (Unaudited) - (Continued)
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS: 2.5%
$1,135,972 UMB Money Market Fiduciary (cost $1,135,972) $ 1,135,972
-----------
TOTAL INVESTMENTS
(cost $43,747,264+): 101.0% 46,406,558
Liabilities in excess of Other Assets: (1.0%) (452,349)
-----------
NET ASSETS: 100.0% $45,954,209
===========
----------
* 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 $ 4,722,435
Gross unrealized depreciation (2,063,141)
-----------
Net unrealized appreciation $ 2,659,294
===========
See accompanying Notes to Financial Statements.
13
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES at September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE LARGE CAP INTERNATIONAL
GROWTH GROWTH-20 TECHNOLOGY GROWTH
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at cost $29,103,640 $ 4,945,503 $ 6,503,322 $43,747,264
=========== =========== =========== ===========
Investments in securities, at value 35,290,760 6,060,351 7,720,198 46,406,558
Cash .............................. 44,008 -- -- 359
Receivables:
Dividends and interest .......... 2,859 1,964 845 18,662
Investment securities sold ...... 1,242,595 -- 358,889 754,090
Due from Advisor ................ -- 9,755 17,557 --
Other assets ...................... 15,402 4,887 15,515 19,209
----------- ----------- ----------- -----------
Total assets .................. 36,595,624 6,076,957 8,113,004 47,198,878
----------- ----------- ----------- -----------
LIABILITIES
Payables:
Funds advanced by custodian ..... -- -- 47,174 --
Investment securities purchased . 1,069,954 106,252 560,957 1,117,189
Administration fees ............. 6,625 3,322 1,908 9,951
Advisory fees ................... 15,808 -- -- 16,550
Distribution fees ............... 6,786 1,407 3,038 3,302
Accrued expenses .................. 39,800 19,010 33,775 97,677
----------- ----------- ----------- -----------
Total liabilities ............... 1,138,973 129,991 646,852 1,244,669
----------- ----------- ----------- -----------
NET ASSETS ........................ $35,456,651 $ 5,946,966 $ 7,466,152 $45,954,209
=========== =========== =========== ===========
</TABLE>
14
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
at September 30, 2000 (Unaudited) - (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE LARGE CAP INTERNATIONAL
GROWTH GROWTH-20 TECHNOLOGY GROWTH
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
COMPONENTS OF NET ASSETS
Paid-in capital ........................... $ 32,472,601 $ 4,904,492 $ 7,644,385 $ 33,874,957
Accumulated net investment loss ........... (175,289) (20,536) (38,671) (202,156)
Accumulated net realized gain (loss)
on investments and foreign currency ..... (3,027,781) (51,838) (1,356,438) 9,622,706
Net unrealized appreciation on
investments and foreign currency ........ 6,187,120 1,114,848 1,216,876 2,658,702
------------ ------------ ------------ ------------
Net assets ............................ $ 35,456,651 $ 5,946,966 $ 7,466,152 $ 45,954,209
============ ============ ============ ============
CLASS R
Net assets applicable to shares outstanding $ 11,766,338 $ 2,467,624 $ 4,852,287 $ 4,873,217
Shares outstanding ........................ 645,826 137,512 213,701 289,161
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE .............. $ 18.22 $ 17.95 $ 22.71 $ 16.85
============ ============ ============ ============
CLASS I
Net assets applicable to shares outstanding $ 23,690,313 $ 3,479,342 $ 2,613,865 $ 41,080,992
Shares outstanding ........................ 1,294,134 193,798 114,969 2,443,863
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE .............. $ 18.31 $ 17.95 $ 22.74 $ 16.81
============ ============ ============ ============
</TABLE>
See accompanying Notes to Financial Statements.
15
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Period Ended September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE LARGE CAP INTERNATIONAL
GROWTH GROWTH-20 TECHNOLOGY GROWTH
FUND (1) FUND (2) FUND (3) FUND (4)
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends ............................... $ 25,712 $ 4,682 $ 5,660 $ 43,086
Interest ................................ 8,014 3,956 622 92,220
--------- --------- --------- ---------
Total income .......................... 33,726 8,638 6,282 135,306
--------- --------- --------- ---------
Expenses
Advisory fees ........................... 160,790 20,906 32,002 279,247
Distribution fees, Class R .............. 12,538 2,651 5,683 6,834
Administration fees ..................... 35,202 17,411 15,336 45,058
Custody fees ............................ 19,657 5,631 11,999 106,585
Fund accounting fees .................... 10,275 10,814 9,999 14,743
Transfer agent fees ..................... 18,328 10,227 16,714 19,411
Audit fees .............................. 7,040 7,040 14,000 9,240
Reports to shareholders ................. 3,041 2,998 2,500 3,993
Registration expense .................... 15,791 13,038 8,511 16,556
Trustee fees ............................ 1,562 802 2,000 2,661
Legal fees .............................. 2,006 1,962 2,000 3,949
Miscellaneous expenses .................. 2,006 1,157 1,749 3,949
Insurance expense ....................... 1,331 1,301 999 1,316
--------- --------- --------- ---------
Total expenses ........................ 289,567 95,938 123,492 513,542
Less: fees waived and expenses absorbed (80,552) (66,764) (78,539) (176,080)
--------- --------- --------- ---------
Net expenses .......................... 209,015 29,174 44,953 337,462
--------- --------- --------- ---------
NET INVESTMENT LOSS ................. (175,289) (20,536) (38,671) (202,156)
========= ========= ========= =========
</TABLE>
16
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF OPERATIONS
For the Period Ended September 30, 2000 (Unaudited) - (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE LARGE CAP INTERNATIONAL
GROWTH GROWTH-20 TECHNOLOGY GROWTH
FUND (1) FUND (2) FUND (3) FUND (4)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments
and foreign currency ......................... $ (6,290,858) $ (277,692) $ (1,626,874) $ (2,276,444)
Net unrealized appreciation (depreciation)
on investments and foreign currency .......... (259,323) 669,755 715,650 (7,854,866)
------------ ------------ ------------ ------------
Net realized and unrealized gain (loss) on
investments and foreign currency ........... (6,550,181) 392,063 (911,224) (10,131,310)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................ $ (6,725,470) $ 371,527 $ (949,895) $(10,333,466)
============ ============ ============ ============
</TABLE>
CLASS R CLASS I
------- -------
(1) Commenced operations on: March 31, 1999 October 19, 1999
(2) Commenced operations on: March 31, 1999 June 7, 2000
(3) Commenced operations on: September 30, 1999 March 30, 2000
(4) Commenced operations on: June 30, 1999 June 30, 1999
See accompanying Notes to Financial Statements.
17
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Period Ended September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE LARGE CAP LARGE CAP
AGGRESSIVE GROWTH GROWTH-20 GROWTH-20
GROWTH FUND (1) FUND (1) FUND (2) FUND (2)
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 2000# MARCH 31, 2000 SEPTEMBER 30, 2000# MARCH 31, 2000
------------------- -------------- ------------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss ...................... $ (175,289) $ (146,282) $ (20,536) $ (9,300)
Net realized gain (loss) on investments
and foreign currency ................... (6,290,858) 3,409,359 (277,692) 235,154
Net unrealized appreciation (depreciation)
on investments and foreign currency .... (259,323) 6,446,443 669,755 445,093
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .............. (6,725,470) 9,709,520 371,527 670,947
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold
Class R .................................. 4,178,093 10,403,349 597,787 1,874,031
Class I .................................. 8,622,395 20,792,778 3,000,000 --
Cost of shares redeemed
Class R .................................. (1,513,925) (3,057,728) (160,249) (407,077)
Class I .................................. (5,649,096) (1,303,265) -- --
------------ ------------ ------------ ------------
Net increase in net assets
derived from net change
in outstanding shares (a) ................ 5,637,467 26,835,134 3,437,538 1,466,954
------------ ------------ ------------ ------------
Total increase (decrease)
in net assets .......................... (1,088,003) 36,544,654 3,809,065 2,137,901
NET ASSETS
Beginning of period ...................... 36,544,654 -- 2,137,901 --
------------ ------------ ------------ ------------
End of period ............................ $ 35,456,651 $ 36,544,654 $ 5,946,966 $ 2,137,901
============ ============ ============ ============
</TABLE>
# Unaudited.
18
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Period Ended September 30, 2000 (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE LARGE CAP LARGE CAP
AGGRESSIVE GROWTH GROWTH-20 GROWTH-20
GROWTH FUND (1) FUND (1) FUND (2) FUND (2)
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 2000# MARCH 31, 2000 SEPTEMBER 30, 2000# MARCH 31, 2000
------------------- -------------- ------------------- --------------
<S> <C> <C> <C> <C>
(a) A summary of capital share transactions is as follows:
CLASS R SHARES
Shares sold ............................................ 230,953 726,298 36,793 136,165
Shares redeemed ........................................ (85,623) (225,802) (10,006) (25,440)
---------- ---------- ---------- ----------
Net increase ........................................... 145,330 500,496 26,787 110,725
========== ========== ========== ==========
CLASS I SHARES
Shares sold ............................................ 481,527 1,188,677 193,798 --
Shares redeemed ........................................ (315,289) (60,781) -- --
---------- ---------- ---------- ----------
Net increase ........................................... 166,238 1,127,896 193,798 --
========== ========== ========== ==========
</TABLE>
CLASS R CLASS I
------- -------
(1) Commenced operations on: March 31, 1999 October 19, 1999
(2) Commenced operations on: March 31, 1999 June 7, 2000
(3) Commenced operations on: September 30, 1999 March 30, 2000
(4) Commenced operations on: June 30, 1999 June 30, 1999
# Unaudited.
See accompanying Notes to Financial Statements.
19
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Period Ended September 30, 2000 (Unaudited) - (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
TECHNOLOGY TECHNOLOGY GROWTH GROWTH
FUND (3) FUND (3) FUND (4) FUND (4)
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2000# 2000 2000# 2000
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss ................. $ (38,671) $ (12,049) $ (202,156) $ (263,445)
Net realized gain (loss) on
investments and foreign currency .. (1,626,874) 282,485 (2,276,444) 12,162,595
Net unrealized appreciation
(depreciation) on investments and
foreign currency .................. 715,650 501,226 (7,854,866) 10,513,568
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS ...................... (949,895) 771,662 (10,333,466) 22,412,718
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold
Class R ............................. 968,659 5,391,680 2,091,434 9,855,974
Class I ............................. 699,201 2,250,000 11,373,629 30,937,246
Cost of shares redeemed
Class R ............................. (758,240) (906,915) (3,693,401) (3,042,228)
Class I ............................. -- -- (445,296) (13,202,401)
------------ ------------ ------------ ------------
Net increase in net assets
derived from net change
in outstanding shares (a) ......... 909,620 6,734,765 9,326,366 24,548,591
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE)IN
NET ASSETS ...................... (40,275) 7,506,427 (1,007,100) 46,961,309
NET ASSETS
Beginning of period ................... 7,506,427 -- 46,961,309 --
------------ ------------ ------------ ------------
End of period ......................... $ 7,466,152 $ 7,506,427 $ 45,954,209 $ 46,961,309
============ ============ ============ ============
</TABLE>
# Unaudited.
20
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Period Ended September 30, 2000 (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
TECHNOLOGY TECHNOLOGY GROWTH GROWTH
FUND (3) FUND (3) FUND (4) FUND (4)
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2000# 2000 2000# 2000
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
(a) A summary of capital share transactions is as follows:
CLASS R SHARES
Shares sold ............................................ 45,617 234,953 118,968 497,550
Shares redeemed ........................................ (36,554) (30,315) (202,757) (124,600)
---------- ---------- ---------- ----------
Net increase (decrease) ................................ 9,063 204,638 (83,789) 372,950
========== ========== ========== ==========
CLASS I SHARES
Shares sold ............................................ 29,677 85,292 647,399 2,432,601
Shares redeemed ........................................ -- -- (26,605) (609,532)
---------- ---------- ---------- ----------
Net increase ........................................... 29,677 85,292 620,794 1,823,069
========== ========== ========== ==========
</TABLE>
CLASS R CLASS I
------- -------
(1) Commenced operations on: March 31, 1999 October 19, 1999
(2) Commenced operations on: March 31, 1999 June 7, 2000
(3) Commenced operations on: September 30, 1999 March 30, 2000
(4) Commenced operations on: June 30, 1999 June 30, 1999
# Unaudited.
See accompanying Notes to Financial Statements.
21
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE AGGRESSIVE LARGE CAP LARGE CAP
GROWTH FUND GROWTH FUND GROWTH-20 FUND GROWTH-20 FUND
SIX MONTHS MARCH 31, SIX MONTHS MARCH 31,
ENDED 1999+ ENDED 1999+
SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH
CLASS R 2000# MARCH 31, 2000 2000# MARCH 31, 2000
------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period ............................. $ 22.40 $ 10.00 $ 19.31 $ 10.00
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................. (0.10) (0.14) (0.08) (0.08)
Net realized and unrealized gain (loss) on
investments ................................... (4.08) 12.54 (1.28) 9.39
------- ------- ------- -------
Total from investment operations ................ (4.18) 12.40 (1.36) 9.31
------- ------- ------- -------
Net asset value, end of period .................. $ 18.22 $ 22.40 $ 17.95 $ 19.31
======= ======= ======= =======
Total return .................................... (18.66%)** 124.00% (7.04%)** 93.10%
======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end
of period (millions) .......................... $ 35.4 $ 11.2 $ 5.9 $ 2.1
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed ........ 1.97%* 2.77% 5.48%* 17.40%
After fees waived and expenses absorbed ......... 1.47%* 1.50% 1.48%* 1.48%
RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed ........ (1.76%)* (2.55%) (5.09%)* (17.08%)
After fees waived and expenses absorbed ......... (1.26%)* (1.28%) (1.08%)* (1.16%)
Portfolio turnover rate ......................... 200.22%** 239.99% 94.40%** 247.49%
</TABLE>
* Annualized.
** Not Annualized.
+ Commencement of operations.
^ Amount represents less than $0.01 per share.
# Unaudited.
See accompanying Notes to Financial Statements.
22
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TECHNOLOGY TECHNOLOGY INTERNATIONAL INTERNATIONAL
FUND FUND GROWTH FUND GROWTH FUND
SIX MONTHS SEPTEMBER 30, SIX MONTHS JUNE 30,
ENDED 1999+ ENDED 1999+
SEPTEMBER 30, THROUGH SEPTEMBER 30, THROUGH
CLASS R 2000# MARCH 31, 2000 2000# MARCH 31, 2000
------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period ............................. $ 25.89 $ 10.00 $ 21.43 $ 10.00
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................. (0.04) (0.06) (0.11) (0.07)
Net realized and unrealized gain (loss) on
investments ................................... (3.14) 15.95 (4.47) 11.50
---------- ---------- ---------- ----------
Total from investment operations ................ (3.18) 15.89 (4.58) 11.43
---------- ---------- ---------- ----------
Net asset value, end of period .................. $ 22.71 $ 25.89 $ 16.85 $ 21.43
========== ========== ========== ==========
Total return .................................... (12.28%)** 158.90%** (21.37%)** 114.30%**
========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) ............ $ 7.5 $ 5.3 $ 46.0 $ 8.0
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed ........ 3.93%* 6.48%* 2.51%* 2.58%*
After fees waived and expenses absorbed ......... 1.48%* 1.48%* 1.73%* 1.73%*
RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed ........ (2.87%)* (6.18%)* (1.91%)* (2.27%)*
After fees waived and expenses absorbed ......... (0.42%)* (1.18%)* (1.13%)* (1.42%)*
Portfolio turnover rate ......................... 224.31%** 97.84%** 143.39%** 161.42%**
</TABLE>
* Annualized.
** Not Annualized.
+ Commencement of operations.
^ Amount represents less than $0.01 per share.
# Unaudited.
See accompanying Notes to Financial Statements.
23
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE AGGRESSIVE LARGE CAP
GROWTH FUND GROWTH FUND GROWTH-20 FUND
SIX MONTHS OCTOBER 19, JUNE 7, 2000+
ENDED 1999+ THROUGH
SEPTEMBER 30, THROUGH SEPTEMBER 30,
CLASS I 2000# MARCH 31, 2000 2000#
------- ------- ------- -------
<S> <C> <C> <C>
Net asset value,
beginning of period ............................. $ 22.46 $ 11.53 $ 15.48
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................. (0.09) (0.07) (0.05)
Net realized and unrealized gain (loss) on
investments ................................... (4.06) 11.00 2.52
------- ------- -------
Total from investment operations ................ (4.15) 10.93 2.47
------- ------- -------
Net asset value, end of period .................. $ 18.31 $ 22.46 $ 17.95
======= ======= =======
Total return .................................... (18.48%)** 94.80%** 15.96%**
======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) ............ $ 35.4 $ 25.3 $ 5.9
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed ........ 1.73%* 2.52%* 3.79%*
After fees waived and expenses absorbed ......... 1.22%* 1.25%* 1.23%*
RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed ........ (1.51%)* (2.30%)* (3.35%)*
After fees waived and expenses absorbed ......... (1.01%)* (1.03%)* (0.91%)*
Portfolio turnover rate ......................... 200.22%** 239.99%** 94.40%**
</TABLE>
* Annualized.
** Not Annualized.
+ Commencement of operations.
^ Amount represents less than $0.01 per share.
# Unaudited.
See accompanying Notes to Financial Statements.
24
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TECHNOLOGY INTERNATIONAL
TECHNOLOGY FUND INTERNATIONAL GROWTH
FUND MARCH 30, GROWTH JUNE 30,
SIX MONTHS 2000+ SIX MONTHS 1999+
ENDED THROUGH ENDED THROUGH
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
CLASS I 2000# 2000 2000# 2000
------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period ............................. $ 25.89 $ 26.38 $ 21.38 $ 10.00
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .................... (0.25) 0.00^ (0.07) (0.13)
Net realized and unrealized gain (loss) on
investments ................................... (2.91) (0.49) (4.50) 11.51
------- ------- ------- -------
Total from investment operations ................ (3.16) (0.49) (4.57) 11.38
------- ------- ------- -------
Net asset value, end of period .................. $ 22.73 $ 25.89 $ 16.81 $ 21.38
======= ======= ======= =======
Total return .................................... (12.24%)** (1.86%)** (21.49%)** 113.80%**
======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) ............ $ 7.5 $ 2.2 $ 46.0 $ 39.0
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed ........ 3.66%* 6.23%* 2.27%* 2.33%*
After fees waived and expenses absorbed ......... 1.22%* 1.23%* 1.48%* 1.48%*
RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed ........ (5.55%)* (5.93%)* (1.66%)* (2.02%)*
After fees waived and expenses absorbed ......... (3.12%)* (0.93%)* (0.87%)* (1.17%)*
Portfolio turnover rate ......................... 224.31%** 97.84%** 143.39%** 161.42%**
</TABLE>
* Annualized.
** Not Annualized.
+ Commencement of operations.
^ Amount represents less than $0.01 per share.
# Unaudited.
See accompanying Notes to Financial Statements.
25
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS at September 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap Growth-20 Fund,
Duncan-Hurst Technology Fund and Duncan-Hurst International Growth Fund (the
"Funds") are each a 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. 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 Class R and Class I commenced operations on March 31,
1999 and June 7, 2000, respectively. Duncan-Hurst Technology Fund Class R and
Class I commenced operations on September 30, 1999 and March 30, 2000,
respectively. Duncan-Hurst International Growth Fund Class R and Class I
commenced operations on June 30, 1999. The investment objective of each Fund is
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 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.
26
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
--------------------------------------------------------------------------------
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 Technology Fund 12,049 (12,049)
Duncan-Hurst International Growth Fund 263,445 (263,445)
27
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (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
September 30, 2000, the advisory fees incurred were $160,790, $20,906, $32,002
and $279,247 for Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap
Growth-20 Fund, Duncan-Hurst Technology Fund and Duncan-Hurst International
Growth Fund, respectively.
The Funds are responsible for their own operating expenses. The Adviser has
contractually agreed to limit the Funds' total 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:
Class R Class I
------- -------
Duncan-Hurst Aggressive Growth Fund 1.48% 1.23%
Duncan-Hurst Large Cap Growth-20 Fund 1.48% 1.23%
Duncan-Hurst Technology Fund 1.48% 1.23%
Duncan-Hurst International Growth Fund 1.73% 1.48%
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. Any such
reimbursement is also contingent upon Board of Trustees review and approval
prior to the time the reimbursement is initiated. The Funds must pay their
current ordinary expenses before the Adviser is entitled to any reimbursement of
fees and/or expenses.
28
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
--------------------------------------------------------------------------------
For the period ended September 30, 2000, the Adviser waived fees and absorbed
expenses as follows:
Fees Expenses
Waived Absorbed
-------- --------
Duncan-Hurst Aggressive Growth Fund $ 80,552 $ --
Duncan-Hurst Large Cap Growth-20 Fund 20,906 45,858
Duncan-Hurst Technology Fund 32,002 46,537
Duncan-Hurst International Growth Fund 176,080 --
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:
Under $75 million 0.20% of average daily net assets
(subject to Fund minimums)
$75 to $150 million 0.15% of average daily net assets
$150 to $200 million 0.10% of average daily net assets
Over $200 million 0.05% of average daily net assets
Minimum Fee:
Duncan-Hurst Aggressive Growth Fund $35,000
Duncan-Hurst Large Cap Growth-20 Fund 35,000
Duncan-Hurst Technology Fund 35,000
Duncan-Hurst International Growth Fund 35,000
For the period ended September 30, 2000, Duncan-Hurst Aggressive Growth
Fund, Duncan-Hurst Large Cap Growth-20 Fund, Duncan-Hurst Technology Fund and
Duncan-Hurst International Growth Fund, incurred $35,202, $17,411, $15,336 and
$45,058, respectively, in administration fees.
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.
Certain officers and trustees of the Trust are also officers and/or
directors of the Administrator and Distributor.
29
<PAGE>
DUNCAN-HURST MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
--------------------------------------------------------------------------------
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 Adviser as reimbursement for, or in anticipation of, expenses incurred for
distribution-related activities. For the period ended September 30, 2000,
Duncan-Hurst Aggressive Growth Fund, Duncan-Hurst Large Cap Growth-20 Fund,
Duncan-Hurst Technology Fund and Duncan-Hurst International Growth Fund paid
fees of $12,538, $2,651, $5,683 and $6,834, 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 September 30, 2000 are as
follows:
Purchases Sales
----------- -----------
Duncan-Hurst Aggressive Growth Fund $70,170,356 $64,471,867
Duncan-Hurst Large Cap Growth-20 Fund 7,105,090 3,715,145
Duncan-Hurst Technology Fund 15,530,015 14,533,862
Duncan-Hurst International Growth Fund 73,503,383 63,149,371
30
<PAGE>
DUNCAN-HURST
MUTUAL FUNDS
DUNCAN-HURST CAPITAL MANAGEMENT INC.
------------------------------------
AGGRESSIVE GROWTH FUND
LARGE CAP GROWTH-20 FUND
TECHNOLOGY FUND
INTERNATIONAL GROWTH FUND
c/o Firstar Mutual Fund Services, LLC
615 E. Michigan Street, 3rd Floor
Milwaukee, WI 53202-5207
or
P.O. Box 701
Milwaukee, WI 53201-0701
This report is intended for shareholders of the Funds 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
