[OBJECT OMITTED]
- --------------------------------------------------------------------------------
CLEARWATER INVESTMENT TRUST
- --------------------------------------------------------------------------------
February 16, 2000
TO: Our Unit Holders
On December 31, 1999, the net asset value of the Clearwater Growth Fund was
$31.94 per unit. The net asset value of the Clearwater Small Cap Fund was $15.13
per unit. On a total return basis for 1999, the Clearwater Growth Fund increased
by 24.3% and the Clearwater Small Cap Fund increased by 27.3%. For comparative
purposes, the Russell 1000 increased by 20.9% and the Russell 2000 increased by
21.3%. For the fourth quarter, the Clearwater Growth Fund increased 18.5% and
the Clearwater Small Cap Fund increased 16.6%. The Russell 1000 increased 16.1%
and the Russell 2000 increased 18.4%.
Parametric Portfolio Associates, the subadvisor for the Clearwater Growth Fund,
made the following comments:
INTRODUCTION
1999 was a very good year for the performance of U.S. stocks as measured by
many of the large and broadly diversified market indexes. Growth and
technology issues were responsible for nearly all of these gains. SIMILAR TO
1998, THERE WAS SIGNIFICANT WEAKNESS IN THE 3RD quarter and an extremely
strong recovery in the 4TH. Small and mid cap stocks were especially strong
late in 1999, and the Russell 2000 index outperformed the S&P500 index for
the year.
CLEARWATER GROWTH FUND
After suffering, in relative terms, vs. the Russell 1000 index during late
1997 and all of 1998, the Clearwater Growth Fund posted strong relative and
absolute performance in 1999. The fund's capitalization bias toward mid cap
which hurt performance in 1998 helped it in 1999 - especially mid cap growth
which was one of the strongest segments of the U.S. market.
CLEARWATER GROWTH'S 1999 EXPERIENCE
-------------------------------------------- --------------------------------
1999 Performance
-------------------------------------------- --------------------------------
Russell 1000 (Large Cap) 20.9%
-------------------------------------------- --------------------------------
Russell MidCap 18.2%
-------------------------------------------- --------------------------------
Russell MidCap Growth 51.3%
-------------------------------------------- --------------------------------
Russell 2000 Value (Small Cap) 21.3%
-------------------------------------------- --------------------------------
CLEARWATER GROWTH FUND 24.3%
-------------------------------------------- --------------------------------
Very importantly, the portfolio experienced virtually no net realization of
capital gains in 1999, leaving the majority of the pre-tax appreciation
available to taxable investors.
LOOKING FORWARD
One of the most interesting market trends to follow in 1999 was the marked
increase in volatility, especially stock-specific volatility. In general
terms, the risk of individual stocks that cannot be explained by overall
market risk or industry risk increased substantially as 1999 progressed.
Intuitively investors confirm this as they observe the meteoric rise and fall
of technology stocks like Yahoo and Qualcomm. A consequence of this trend was
an increase in the predicted tracking error of the Clearwater portfolio
versus the Russell 1000 index. In Parametric's 1998 annual portfolio review,
we reported a predicted tracking error of 2.7%. Over the course of 1999, this
rose to greater than 3.5% due to changes in market behavior - not portfolio
composition.
<PAGE>
February 16, 2000
Page 2
Parametric Portfolio Associates (cont.)
In response to Parametric's earlier communication of the tracking error
issue, the board informed Parametric to disregard the previously assigned
tracking error target of 2.5% by January 31, 2000. We are still under
instruction to reach a 2.0% target by January 31, 2001. Parametric
anticipates re-balancing the portfolio periodically in 2000 to step down to
the tracking error target.
[OBJECT OMITTED]
Annualized Total Returns
One Year Five Year Ten Year
Growth Fund 24.3% 25.8% 16.6%
Russell 1000 20.9% 28.0% 18.1%
Kennedy Capital Management, the subadvisor for the Small Cap Fund, made the
following comments:
For the first time in six years the Russell 2000 index beat large stock
indexes! For the year the Russell 2000 gained 21.3% while the S&P offered a
21.0% return. The Russell 1000 large-cap index was up 20.9%.
This outperformance, however, masks an extreme divergence between growth and
value within both the large and small sectors. In 1999, the Russell 1000
Growth index gained 33.2%, well ahead of the 7.3% increase in the Russell
1000 Value benchmark. More significant to Kennedy Capital and our clients,
the Russell 2000 SMALL-CAP GROWTH INDEX WAS UP 43.1% WHILE THE SMALL-CAP
VALUE INDEX LOST 1.5%! This 45% spread between growth and value is the
largest since 1979 when the style indexes were introduced. Furthermore, the
contrast between the styles accelerated at the end of the year. For example,
in the fourth quarter alone growth beat value by 32%.
Underlying this divergence between growth and value was the spread of
technology sector euphoria to small stocks. Russell 2000 technology stocks
gained 65% in the fourth quarter and 102% for the year. The rest of the
Russell 2000 index gained only 6.8%. Even that 7% gain vastly overstates
returns to non-tech/non-Internet stocks. For example, the top 25 performing
stocks in consumer services are wireless communications companies. As a group
these companies lost $68 million but had an average 12-month return of 98%.
<PAGE>
February 16, 2000
Page 3
Kennedy Capital Management (cont.)
In consumer cyclicals, the best return, +724%, was generated by the web site
service provider, Intervu. Incidentally, Intervu had a net loss of $22
million last year. Of course, nothing needs to be said about what Internet
companies earn! The point is that the positive return of the Russell index
was generated primarily by tech and Internet stocks.
In spite of the fact that Kennedy Capital leans toward value, as evidenced by
the valuation criteria of your portfolio, returns for the account were very
strong. The Clearwater account beat its benchmark by 6% during the year.
We are looking forward to a reversal of this single-minded mania for tech and
growth stocks. When investors once again begin to weigh the value in their
decision making, the Kennedy process should perform better.
[OBJECT OMITTED]
Annualized Total Returns
One Year Five Year Ten Year
Small Cap Fund 27.3% 19.2% 14.4%
Russell 2000 21.3% 16.7% 13.4%
CLEARWATER INVESTMENT TRUST CLEARWATER MANAGEMENT COMPANY
P.W. Pascoe, Chairman and Treasurer P.W. Pascoe, Chairman and Treasurer
Samuel B. Carr, Jr. W.T. Weyerhaeuser, V. P. and Secretary
Stanley R. Day, Jr. E.C. Driscoll
Robert J. Phares W.John Driscoll
F.T. Weyerhaeuser, V. P. and Secretary C.W. Morley
F.W. Piasecki
D.C. Titcomb
G.H. Weyerhaeuser, Jr.
<PAGE>
CLEARWATER INVESTMENT TRUST
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
<S> <C> <C>
DECEMBER 31, 1999 GROWTH SMALL CAP
FUND FUND
ASSETS
Investments in securities, at market value (note 2)
(identified cost: $61,419,969 Growth Fund; $47,631,851 Small Cap Fund) $169,986,956 $60,170,158
Cash 2,820 48,563
Accrued dividend and interest receivable 98,802 9,845
-------------- -------------
TOTAL ASSETS 170,088,578 60,228,566
LIABILITIES
Payables for investment securities purchased 0 855,176
Accrued management fee 175,994 177,607
-------------- -------------
TOTAL LIABILITIES 175,994 1,032,783
NET ASSETS $169,912,584 $59,195,783
- ----------
============== =============
CAPITAL
Capital stock and additional paid-in capital
(authorized unlimited number of shares at no par value for each Fund:
outstanding 5,319,692 and 3,912,145 shares, respectively (note 2)) $61,332,516 $46,606,504
Undistributed net income 13,081 0
Accumulated net realized gain 0 50,972
Unrealized appreciation of investments 108,566,987 12,538,307
-------------- -------------
NET ASSETS $169,912,584 $59,195,783
============== =============
Net asset value per share of outstanding capital stock $ 31.94 $ 15.13
See accompanying notes to financial statements 1
<PAGE>
CLEARWATER INVESTMENT TRUST
STATEMENTS OF OPERATIONS
FOR YEAR ENDED DECEMBER 31, 1999 GROWTH SMALL CAP
FUND FUND
INVESTMENT INCOME
Income:
Dividends (net of foreign taxes withheld of $3,599 and $1,160, respectively) $1,197,818 $321,364
Interest 25,162 139,435
-------------- -------------
TOTAL INCOME 1,222,980 460,799
Expenses: (note 5)
Income tax expense 5,200 25
Investment advisory fee 655,350 623,390
-------------- -------------
TOTAL EXPENSES 660,550 623,415
NET INVESTMENT INCOME (LOSS) 562,430 (162,616)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on security transactions 669,133 5,519,176
Unrealized appreciation during the period 31,836,313 7,121,988
-------------- -------------
NET GAIN ON INVESTMENTS 32,505,446 12,641,164
-------------- -------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $33,067,876 $12,478,548
============== =============
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For Year Ended December 31, 1999 and 1998 GROWTH FUND SMALL CAP FUND
<S> <C> <C> <C> <C>
12/31/1999 12/31/1998 12/31/1999 12/31/1998
OPERATIONS
Net investment income(loss) $562,430 $474,100 ($162,616) ($115,508)
Net realized gain(loss) on investments 669,133 (205,323) 5,519,176 3,235,880
Unrealized appreciation(depreciation) during the period 31,836,313 24,810,426 7,121,988 (6,246,007)
-------------- ------------- -------------- -------------
NET INCREASE(DECREASE) IN NET ASSETS FROM OPERATIONS 33,067,876 25,079,203 12,478,548 (3,125,635)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income (750,478) (278,171) 0 0
Net realized gain on investments (463,810) 0 (5,305,682) (3,235,811)
Return of capital (212,677) 0 0 0
-------------- ------------- -------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,426,965) (278,171) (5,305,682) (3,235,811)
CAPITAL SHARE TRANSACTIONS (note 4)
Proceeds from shares sold 4,587,100 619,900 7,224,850 2,994,150
Reinvestment of distributions from net investment income, gain,
and return of capital 873,806 4,830,772 6,345,779 5,186,008
Payments for shares redeemed (1,961,797) (2,338,395) (764,346) (3,440,487)
-------------- ------------- -------------- -------------
INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS 3,499,109 3,112,277 12,806,283 4,739,671
-------------- ------------- -------------- -------------
TOTAL INCREASE(DECREASE)IN NET ASSETS 35,140,020 27,913,309 19,979,149 (1,621,775)
NET ASSETS
At the beginning of the year 134,772,564 106,859,255 39,216,634 40,838,409
-------------- ------------- -------------- -------------
At the end of the year $169,912,584 $134,772,564 $59,195,783 $39,216,634
============== ============= ============== =============
Undistributed Net Income $13,081 $195,929 $0 $0
============== ============= ============== =============
</TABLE>
See accompanying notes to financial statements 2
<PAGE>
CLEARWATER INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Clearwater Investment Trust (the Trust) was established on January 12,
1987 as a Massachusetts business trust and is registered under the
Investment Company Act of 1940 (as amended) as a diversified open-end
management investment company and presently includes two series of
funds: Clearwater Growth Fund and Clearwater Small Cap Fund (the
funds). The Trust's declaration of trust permits the board of
directors to create additional funds in the future. The investment
objective of the funds is long-term capital growth.
The Clearwater Growth Fund is passively managed to track but not
replicate the Russell 1000 Index, an unmanaged, capitalization
weighted index of the largest 1000 public companies in the United
States. The fund is managed so that its holdings match the holdings of
the Index as closely as possible without requiring the fund to realize
taxable gains. This means that the fund will not buy and sell
securities to match changes in the composition of securities in the
Index. Instead, the fund's portfolio is adjusted periodically to
reflect the holdings and weightings of the Index, but only after
consideration of the fund's policy to minimize realization of taxable
gains. The Clearwater Small Cap Fund invests primarily in equity
securities of issuers with market capitalizations, at the time of
investment, no greater than the range of capitalizations of the
companies included in the Russell 2000 Index, an unmanaged,
capitalization weighted index of the largest 3000 public companies in
the United States less the largest 1000 tracked by the Russell 1000
Index.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the funds are as follows:
INVESTMENTS IN SECURITIES
Investments in securities are valued at the last sales price on the
principal exchange or market where they are traded. Securities which
have not traded on the date of valuation or securities for which sales
prices are not generally reported are valued at the mean between the
last bid and asked prices. Securities for which no market quotations
are readily available (including those the trading of which has been
suspended) will be valued at fair value as determined in good faith by
the board of trustees, although the actual computations may be made by
persons acting pursuant to the direction of the board.
Security transactions are accounted for on the date the securities are
purchased or sold. Realized gains and losses are calculated on an
identified cost basis. Dividend income is recognized on the
ex-dividend date and interest income, including amortization of
original issue discount and premium, is accrued daily.
1
<PAGE>
CLEARWATER INVESTMENT TRUST
FEDERAL TAXES
The Trust's policy is to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to shareholders.
Therefore, no income tax provision is required. Each fund is treated
as a separate entity for federal income tax purposes.
Net investment income and net realized gains (losses) for the funds my
differ for financial statement and tax purposes. The character of
distributions made during the year from net investment income or net
realized gains may differ from their ultimate characterization for
federal income tax purposes. Also, due to the timing of dividend
distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were
recorded by the funds.
On the statements of assets and liabilities, due to permanent
book-to-tax differences, the following adjustments have been made:
Clearwater Clearwater
Growth Fund Small Cap Fund
----------------------------------------------------------------------
----------------------------------------------------------------------
Undistributed net income $ 5,200 $ 162,616
Accumulated net realized gains 0 (162,591)
Additional paid-in capital (5,200) (25)
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income and net
realized gains, if any, are declared annually and paid in cash or
reinvested in additional shares.
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 and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of increase
and decrease in net assets from operations during the period. Actual
results could differ from those estimates.
2
<PAGE>
CLEARWATER INVESTMENT TRUST
(3) INVESTMENT SECURITY TRANSACTIONS
Cost of purchases and proceeds from sales of securities, other than
temporary investments in short-term securities, for the year ended
December 31, 1999, were as follows:
Purchases Sales proceeds
-------------------------------------------------------------------
Clearwater Growth Fund $19,838,762 $17,702,796
Clearwater Small Cap Fund 55,096,431 49,521,831
(4) CAPITAL SHARE TRANSACTIONS
Transactions in shares of each fund for the year ended December 31,
1999 and 1998, were as follows:
<TABLE>
<CAPTION>
Clearwater Clearwater
Growth Fund Small Cap Fund
-----------------------------------------------------------------------
12/31/1999 12/31/1998 12/31/1999 12/31/1998
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 163,135 25,983 512,476 198,063
Issued for reinvested
distributions 29,145 228,190 454,134 340,289
Redeemed (72,041) (102,479) (51,680) (220,241)
---------------------------------------------------------------------------------------------------------
Increase 120,239 151,694 914,930 318,111
---------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
CLEARWATER INVESTMENT TRUST
(5) EXPENSES AND RELATED PARTY TRANSACTIONS
The Trust has a contract for investment advisory services with
Clearwater Management Company, a management firm of which the Trust's
chairman and treasurer is a shareholder. Under terms of an agreement,
Clearwater Growth Fund and Clearwater Small Cap Fund pay a fee equal
to an annual rate of 0.45% and 1.35% of average net assets,
respectively. Clearwater Management Company is responsible for the
payment or reimbursement of all of the Funds' expenses, except
brokerage, taxes, interest and extraordinary expenses.
The management firm has entered into a sub-advisory contract with an
independent investment advisory firm for each fund to provide daily
investment management services. The sub-advisory fee for the
Clearwater Growth Fund, payable to Parametric Portfolio Associates,
Inc., is equal to an annual rate of 0.15% of net assets. The
sub-advisory fee for the Clearwater Small Cap Fund, payable to Kennedy
Capital Management, is equal to an annual rate of 0.85% of the first
$50 million in net assets and then decreasing to 0.80% of net assets
in excess of $50 million.
(6) RESTRICTED SECURITIES
At December 31, 1999, investments in securities for the Clearwater
Growth Fund includes a security sold under Rule 144A, which is exempt
from registration under the Securities Act of 1933, as amended. The
Fund currently limits investments in restricted securities to 15% of
net assets at the time of purchase. The aggregate value of such
security at December 31, 1999 was $2,290,750 representing 1.35% of net
assets for the Clearwater Growth Fund.
4
<PAGE>
CLEARWATER INVESTMENT TRUST
(7) Financial Highlights
Per share data (rounded to the nearest cent) for a share of capital stock
outstanding throughout the period and selected information for each
period is as follows:
<TABLE>
<CAPTION>
Clearwater Growth Fund
Year ended December 31,
---------------------------------------------------
1999 1998 1997(b) 1996 1995
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Net asset value, beginning of year 25.92 21.17 17.88 17.01 13.62
--------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income(loss) 0.11 0.09 (0.01) (0.01) 0.01
Net realized and unrealized gains 6.18 4.71 5.08 3.68 4.43
--------------------------------------------------------------------------------------------------------
Total from investment
operations 6.29 4.80 5.07 3.67 4.44
--------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.14) (0.05) 0.00 0.00 (0.01)
Distributions from net realized gains (0.09) 0.00 (1.78) (2.80) (1.04)
Return of capital (0.04) 0.00 0.00 0.00 0.00
--------------------------------------------------------------------------------------------------------
Total distributions (0.27) (0.05) (1.78) (2.80) (1.05)
--------------------------------------------------------------------------------------------------------
Net asset value, end of year 31.94 25.92 21.17 17.88 17.01
--------------------------------------------------------------------------------------------------------
Total return(a) 24.3% 22.7% 28.4% 21.6% 32.6%
Net assets, end of year (000s omitted) 169,913 134,773 106,859 93,922 84,775
Ratio of expenses to average net assets 0.45% 0.45% 0.98% 1.08% 1.08%
Ratio of net investment income (loss) to
average net assets 0.39% 0.39% (0.06%) (0.07%) 0.06%
Portfolio turnover rate (excluding short-
term securities) 12.19% 3.65% 38.16% 75.90% 58.64%
<FN>
(a) Total return figures are based on the change in net asset value of a share during the period and assumes
reinvestment of distributions at net asset value.
(b) Effective November 1, 1997, Parametric Portfolio Associates, Inc. became the subadvisor for the fund.
</FN>
</TABLE>
5
<PAGE>
CLEARWATER INVESTMENT TRUST
<TABLE>
<CAPTION>
Clearwater Small Cap Fund
Year ended December 31,
---------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Net asset value, beginning of year $13.08 15.24 12.74 11.47 9.89
--------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income(loss) (0.05) (0.04) (0.02) 0.00 0.04
Net realized and unrealized gains(losses) 3.57 (1.04) 5.14 1.71 2.56
--------------------------------------------------------------------------------------------------------
Total from investment
operations 3.52 (1.08) 5.12 1.71 2.60
--------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 0.00 (0.04)
Excess distributions from net invest income 0.00 0.00 0.00 (0.01) 0.00
Distributions from net realized gains (1.47) (1.08) (2.62) (0.42) (0.98)
Return of capital 0.00 0.00 0.00 (0.01) 0.00
--------------------------------------------------------------------------------------------------------
Total distributions (1.47) (1.08) (2.62) (0.44) (1.02)
--------------------------------------------------------------------------------------------------------
Net asset value, end of year $15.13 13.08 15.24 12.74 11.47
--------------------------------------------------------------------------------------------------------
Total return(a) 27.3% (7.1%) 40.2% 15.0% 26.3%
Net assets, end of year (000s omitted) $59,196 39,217 40,838 32,774 26,826
Ratio of expenses to average net assets 1.34% 1.36% 1.35% 1.37% 1.35%
Ratio of net investment income (loss) to
average net assets (0.35%) (0.26%) (0.17%) 0.00% 0.36%
Portfolio turnover rate (excluding short-
term securities) 112.63% 88.27% 92.22% 89.25% 77.46%
<FN>
(a) Total return figures are based on the change in net asset value of a share during the period and assumes
reinvestment of distributions at net asset value.
</FN>
</TABLE>
6
<PAGE>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (A) NET ASSETS
COMMON STOCKS
BANKS
7,484 AMSOUTH BANCORPORATION 107,205.00 144,534.75
14,786 BANK AMER CORP 981,279.24 742,072.37
2,600 BANK NEW YORK INC 62,790.52 104,000.00
13,000 CHASE MANHATTAN CORP 654,888.75 1,009,937.50
37,617 CITIGROUP INC 542,003.72 2,090,094.56
450 COMERICA INC 23,943.00 21,009.37
800 FIFTH THIRD BANCORP 38,237.50 58,700.00
600 FIRSTAR CORP WIS 14,174.50 12,675.00
2,984 FLEETBOSTON FINL CORP 99,688.76 103,880.50
2,100 MBNA CORP 37,621.50 57,225.00
2,200 MELLON FINL CORP 60,578.54 74,937.50
600 MORGAN J P & CO INC 69,092.28 75,975.00
400 NORTHERN TRUST CORP 14,850.00 21,200.00
1,300 PNC BK CORP 63,852.97 57,850.00
7,000 REPUBLIC NY CORP 334,237.70 504,000.00
500 STATE STREET CORPORATION 28,217.50 36,531.25
700 SUNTRUST BKS INC 46,060.77 48,168.75
55,000 TCF FINANCIAL CORP 965,087.50 1,368,125.00
500 WACHOVIA CORP 37,580.00 34,000.00
55,000 WELLS FARGO & CO 1,250,765.50 2,224,062.50
-------------- ---------------
5,432,155.25 8,788,979.05 5.17%
BUSINESS SERVICES
18,700 AMERICA ONLINE INC (b) 1,067,386.50 1,410,681.25
2,000 AUTOMATIC DATA PROCESSING INC 52,653.80 107,750.00
44,000 CERIDIAN CORP (b) 548,909.80 948,750.00
10,000 COMPUTER SCIENCES CORP (b) 341,043.55 946,250.00
78,000 DENDRITE INTL INC (b) 317,216.10 2,642,250.00
100 ELECTRONIC DATA SYS CORP 3,917.93 6,693.75
22,000 FIRST DATA CORP 226,047.22 1,084,875.00
40,500 FISERV INC (b) 549,868.20 1,551,656.25
400 INTERPUBLIC GROUP COS INC 12,024.50 23,075.00
1,040 MOMENTUM BUSINESS APPLICATIONS (b) - 8,190.00
200 OMNICOM GROUP 10,562.00 20,000.00
52,312 PAYCHEX INC 278,096.38 2,092,480.00
1,000 PITNEY BOWES INC 41,455.00 48,312.50
44,000 SAP AKTIENGESELLSCHAFT (c) 401,720.00 2,290,750.00
450 STAPLES INC (b) 9,993.75 9,337.50
58,300 VODAFONE AIRTOUCH PLC 616,927.80 2,885,850.00
-------------- ---------------
4,477,822.53 16,076,901.25 9.46%
CAPITAL GOODS
1,500 CATERPILLAR INC 77,171.25 70,593.75
28,500 CRANE CO 491,452.71 566,437.50
800 DOVER CORP 27,686.52 36,300.00
1,800 EMERSON ELEC CO 101,620.50 103,275.00
38,600 GENERAL ELEC CO 1,661,591.47 5,973,350.00
6,333 HUTTIG BLDG PRODS INC (b) 24,222.29 31,270.83
900 ILLINOIS TOOL WKS INC 47,147.76 60,806.25
200 INGERSOLL RAND CO 8,874.50 11,012.50
600 PPG INDS INC 34,142.28 37,537.50
34,000 TYCO INTL LTD 329,885.00 1,321,750.00
-------------- ---------------
2,803,794.28 8,212,333.33 4.83%
See accompanying notes to investments in securities 1
<PAGE>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1999
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (A) NET ASSETS
CONSUMER DURABLES
1,247 DAIMLER CHRYSLER AG STUTTGART 72,120.00 97,577.75
1,678 DELPHI AUTOMOTIVE SYS CORP 26,354.11 26,428.50
3,975 FORD MTR CO 124,497.78 212,414.06
2,800 GENERAL MTRS CORP 150,403.12 203,525.00
52,500 HARLEY DAVIDSON INC 661,620.72 3,363,281.25
1,300 MASCO CORP 31,635.50 32,987.50
-------------- ---------------
1,066,631.23 3,936,214.06 2.32%
CONSUMER NON DURABLES
40 AGRIBRANDS INTL INC (b) 1,196.85 1,840.00
1,800 ANHEUSER BUSCH COS INC 76,807.95 127,575.00
1,000 BESTFOODS 47,226.67 52,562.50
36,000 COCA COLA CO 1,081,705.00 2,097,000.00
2,000 COLGATE PALMOLIVE CO 63,903.80 130,000.00
1,100 EASTMAN KODAK CO 69,022.25 72,875.00
1,400 GENERAL MLS INC 46,317.00 50,050.00
33,000 GILLETTE CO 550,137.35 1,359,187.50
2,350 PEPSICO INC 87,531.62 82,837.50
31,500 PHILIP MORRIS COS INC 520,988.30 730,406.25
18,000 PROCTER & GAMBLE CO 728,181.20 1,972,125.00
5,475 QUAKER OATS CO 343,042.71 359,296.87
2,800 RALSTON PURINA CO 82,835.67 78,050.00
3,950 SYSCO CORP 121,024.50 156,271.87
5,050 WRIGLEY WM JR CO 352,624.88 418,834.37
-------------- ---------------
4,172,545.75 7,688,911.86 4.53%
CONSUMER SERVICES
6,412 LIBERTY MEDIA GROUP CL A 172,315.90 363,881.00
4,400 CBS CORP (b) 122,493.25 281,325.00
37,000 CENDANT CORP (b) 284,605.76 982,812.50
200 CLEAR CHANNEL COMMUNICATIONS (b) 11,524.50 17,850.00
2,800 COMCAST CORP 44,837.50 141,575.00
3,900 DISNEY WALT CO 111,918.69 114,075.00
1,100 GANNETT INC 61,559.72 89,718.75
6,110 HILTON HOTELS CORP 54,788.15 58,808.78
41,000 MARRIOTT INTL INC 352,253.59 1,294,062.50
5,400 MCDONALDS CORP 132,805.67 217,687.50
400 MCGRAW HILL COS INC 16,537.00 24,650.00
3,500 MEDIAONE GROUP INC (b) 150,263.91 268,843.75
6,175 SODEXHO MARRIOTT SVCS INC 294,362.45 80,275.00
10,500 TIME WARNER INC 553,015.50 760,593.75
400 TRIBUNE CO 13,712.00 22,025.00
2,600 VIACOM INC (b) 51,115.55 157,137.50
-------------- ---------------
2,428,109.14 4,875,321.03 2.87%
ENERGY
32,226 BP AMOCO PLC 854,870.23 1,911,404.62
2,500 CHEVRON CORP 214,043.68 216,562.50
5,280 CONOCO INC 104,244.85 131,340.00
25,860 EXXON MOBIL CORP 1,801,757.83 2,083,346.25
1,000 OCCIDENTAL PETE CORP 23,060.00 21,625.00
34,570 SCHLUMBERGER LTD 872,552.00 1,944,562.50
9,693 TRANSOCEAN SEDCO FOREX INC 182,425.95 326,524.58
-------------- ---------------
4,052,954.54 6,635,365.45 3.90%
See accompanying notes to investments in securities 2
<PAGE>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1999
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (A) NET ASSETS
FINANCIAL SERVICES
143 AEGON 10,483.69 13,656.50
300 AFLAC INC 10,336.74 14,156.25
1,900 AMERICAN EXPRESS CO 161,114.01 315,875.00
800 AMERICAN GEN CORP 41,298.00 60,700.00
26,060 AMERICAN INTL GROUP INC 494,492.61 2,817,737.50
2,044 ASSOCIATES FIRST CAP CORP 61,288.86 56,082.25
24,000 AXA FINL INC 461,539.95 813,000.00
300 CAPITAL ONE FINL CORP 11,424.75 14,456.25
800 CIGNA CORP 45,024.00 64,450.00
21,500 FEDERAL HOME LN MTG CORP 65,945.84 1,011,843.75
4,000 FEDERAL NATL MTG ASSN 210,333.75 249,750.00
18,000 FRANKLIN RES INC 332,901.55 577,125.00
800 HARTFORD FINANCIAL SVCS GRP 32,399.00 37,900.00
1,200 HOUSEHOLD INTL INC 45,811.52 44,700.00
950 MARSH & MCLENNAN COS INC 48,954.50 90,903.12
44,000 MERCURY GEN CORP 622,320.30 979,000.00
24,000 MGIC INVT CORP WIS 576,720.00 1,444,500.00
1,900 MORGAN STANLEY DEAN WITTER & CO 117,313.95 271,225.00
39,000 PRICE T ROWE & ASSOC INC 544,918.25 1,440,562.50
300 PROVIDIAN FINL CORP 15,774.50 27,318.75
8,500 RADIAN GROUP INC 245,161.25 405,875.00
600 SCHWAB CHARLES CORP 7,612.00 23,025.00
700 SLM HLDG CORP 28,837.00 29,575.00
12,500 XL CAPITAL LTD 159,375.00 648,437.50
-------------- ---------------
-------------- ---------------
4,351,381.02 11,451,854.37 6.74%
HEALTH CARE
5,800 ABBOTT LABS 191,129.25 210,612.50
4,900 AMERICAN HOME PRODUCTS CORP 196,436.73 193,243.75
56,000 AMGEN INC (b) 259,439.50 3,363,500.00
1,100 BAXTER INTL INC 54,547.25 69,093.75
31,000 BIOGEN INC (b) 450,884.15 2,619,500.00
7,600 BRISTOL MYERS SQUIBB CO 359,778.10 487,825.00
600 CARDINAL HEALTH INC 29,424.00 28,725.00
41,000 ELAN PLC (b) 625,284.55 1,209,500.00
1,400 GUIDANT CORP 44,560.75 65,800.00
16,500 JOHNSON & JOHNSON 364,435.12 1,536,562.50
19,000 LILLY ELI & CO 794,112.40 1,263,500.00
21,080 MCKESSON HBOC INC 354,224.82 475,617.50
46,000 MEDTRONIC INC 171,646.13 1,676,125.00
9,200 MERCK & CO INC 431,401.00 616,975.00
106,500 PFIZER INC 354,583.00 3,454,593.75
2,000 PHARMACIA & UPJOHN INC 69,876.21 90,000.00
5,600 SCHERING PLOUGH CORP 179,068.00 236,250.00
12,000 SMITHKLINE BEECHAM P L C 345,855.00 773,250.00
17,500 STRYKER CORP 270,380.65 1,218,437.50
38,750 WARNER LAMBERT CO 1,094,689.57 3,175,078.12
-------------- ---------------
6,641,756.18 22,764,189.37 13.40%
MULTI-INDUSTRY
600 TEXTRON INC 38,736.00 46,012.50
-------------- ---------------
38,736.00 46,012.50 0.03%
RAW MATERIALS
1,400 ALCOA INC 50,629.50 116,200.00
1,000 DOW CHEM CO 92,122.54 133,625.00
2,510 DU PONT E I DE NEMOURS & CO 146,109.02 165,346.25
300 GEORGIA PAC CORP 5,990.16 7,387.50
1,200 INTERNATIONAL PAPER CO 56,047.00 67,725.00
2,100 KIMBERLY CLARK CORP 108,976.05 137,025.00
22,500 MONSANTO CO 329,839.69 801,562.50
-------------- ---------------
789,713.96 1,428,871.25 0.84%
See accompanying notes to investments in securities 3
<PAGE>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1999
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (A) NET ASSETS
RETAIL
700 ALBERTSONS INC 26,335.75 22,575.00
900 COSTCO WHSL CORP (b) 39,156.25 82,125.00
1,200 CVS CORP 37,761.00 47,925.00
1,700 DAYTON HUDSON CORP 60,597.48 124,843.75
19,500 FEDERATED DEPT STORES INC (b) 513,045.00 985,968.75
2,362 GAP INC 39,058.73 108,652.00
77,250 HOME DEPOT INC 50,381.91 5,296,453.12
43,600 KOHLS CORP (b) 718,167.75 3,147,375.00
1,400 KROGER CO (b) 22,635.76 26,425.00
300 LOWES COS INC 11,643.00 17,925.00
1,200 MAY DEPT STORES CO 44,498.00 38,700.00
1,600 SAFEWAY INC (b) 47,173.04 56,900.00
300 TJX COS INC 7,105.50 6,131.25
20,600 WAL MART STORES INC 692,593.12 1,423,975.00
50,000 WALGREEN CO 632,788.70 1,462,500.00
-------------- ---------------
2,942,940.99 12,848,473.87 7.56%
TECHNOLOGY
23,500 ADC TELECOMMUNICATIONS INC (b) 538,040.05 1,705,218.75
38,000 ANALOG DEVICES INC (b) 681,654.00 3,534,000.00
1,500 APPLIED MATERIALS INC (b) 54,672.06 190,031.25
22,000 ASM LITHOGRAPHY HLDG N V (b) 422,301.25 2,502,500.00
19,000 BOEING CO 449,445.00 789,687.50
83,525 CISCO SYS INC (b) 270,996.40 8,947,615.62
15,000 COMPUTER ASSOC INTL INC 514,842.00 1,049,062.50
8,400 DELL COMPUTER CORP (b) 110,222.76 428,400.00
3,200 E M C CORP MASS (b) 47,098.00 349,600.00
4,500 HEWLETT PACKARD CO 339,038.95 512,718.75
2,450 HONEYWELL INTL INC 91,357.32 141,334.37
52,000 INTEL CORP 208,329.75 4,280,250.00
14,600 INTERNATIONAL BUSINESS MACHS 1,234,375.50 1,576,800.00
38,000 LEGATO SYSTEMS INC (b) 157,970.10 2,614,875.00
19,130 LUCENT TECHNOLOGIES INC 797,614.20 1,431,163.12
52,000 MICROSOFT CORP (b) 83,073.61 6,071,000.00
240 NORTEL NETWORKS CORP 6,924.50 24,240.00
39,750 ORACLE CORP (b) 83,951.14 4,454,484.37
64,000 PARAMETRIC TECHNOLOGY CORP (b) 417,553.25 1,732,000.00
22,000 PEOPLESOFT INC (b) 286,907.50 468,875.00
11,200 SUN MICROSYSTEMS INC (b) 655,262.50 867,300.00
29,000 TELLABS INC (b) 298,665.30 1,861,437.50
800 TEXAS INSTRS INC 24,274.00 77,500.00
300 UNISYS CORP (b) 8,118.00 9,581.25
7,580 UNITED TECHNOLOGIES CORP 389,857.54 492,700.00
76,000 XILINX INC (b) 579,697.78 3,455,625.00
---------------
---------------
8,752,242.46 49,567,999.98 29.17%
TRANSPORTATION
600 AMR CORP (b) 35,793.00 40,200.00
400 DELTA AIR LINES INC 20,824.50 19,925.00
23,200 FDX CORP (b) 523,042.27 949,750.00
450 SOUTHWEST AIRLS CO 6,712.00 7,284.37
-------------- ---------------
586,371.77 1,017,159.37 0.60%
See accompanying notes to investments in securities 4
<PAGE>
CLEARWATER GROWTH FUND
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1999
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (A) NET ASSETS
UTILITIES
3,600 ALLTEL CORP 220,522.25 297,675.00
29,476 AT & T CORP (b) 1,126,733.94 1,495,907.00
20,100 BELL ATLANTIC CORP 1,117,400.13 1,237,406.25
10,650 BELLSOUTH CORP 332,723.49 498,553.12
15,150 COASTAL CORP 604,527.75 536,878.12
800 CONSOLIDATED EDISON INC 27,723.04 27,600.00
14,500 DOMINION RES INC VA 639,701.25 569,125.00
1,200 DUKE ENERGY CO 58,309.56 60,150.00
2,600 EL PASO ENERGY CORP 64,018.50 100,912.50
9,000 ENRON CORP 262,275.50 399,375.00
22,750 ENTERGY CORP 644,679.87 585,812.50
12,700 GTE CORP 841,299.50 896,143.75
3,500 LEVEL 3 COMMUNICATIONS INC (b) 208,481.25 286,562.50
25,404 MCI WORLDCOM INC (b) 1,126,606.42 1,347,999.75
2,000 NEXTEL COMMUNICATIONS INC (b) 144,125.00 206,250.00
1,400 PG&E CORP 36,484.00 28,700.00
16,700 PUBLIC SVC ENTERPRISE GROUP 638,552.00 581,368.75
23,850 RELIANT ENERGY INC 640,009.13 545,568.75
43,975 SBC COMMUNICATIONS INC 1,795,866.11 2,143,781.25
8,700 SOUTHERN CO 211,297.01 204,450.00
9,200 SPRINT CORP 337,910.53 619,275.00
2,900 SPRINT CORP PCS COM SER 1 (b) 157,404.04 297,250.00
800 TEXAS UTILS CO 28,673.04 28,450.00
6,554 U S WEST INC 349,809.27 471,888.00
17,300 UNICOM CORP 647,869.05 579,550.00
5,400 WILLIAMS COS INC 183,112.65 165,037.50
-------------- ---------------
12,446,114.28 14,211,669.74 8.36%
CASH EQUIVALENTS
CASH OR CASH EQUIVALENT
436,699.71 SSGA MONEY MARKET 436,699.71 436,699.71 0.26%
-------------- ---------------
Grand Total (d) 61,419,969.09 169,986,956.19 100.04%
============== =============== =============
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES
(a)Securities are valued in accordance with procedures
described in note 2 to the financial statements.
(b)Currently non-income producing assets.
(c)Security purchased on May 23, 1995 at a cost of
$401,720 as part of a private placement that has not
been registered with the Securities and Exchange
Commission under the Securities Act of 1933. May be
sold only to dealers in that program or other
accredited investors.
(d)At December 31, 1999, the cost for Federal income tax
purposes was $61,419,969. The aggregate gross
unrealized appreciation and depreciation of
investments in securities based of this cost were as
follows:
Gross unrealized appreciation 109,524,176.84
Gross unrealized depreciation (957,189.74)
--------------
==============
Net unrealized appreciation 108,566,987.10
==============
See accompanying notes to investments in securities 1
<PAGE>
CLEARWATER SMALL CAP FUND
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1999
<S> <C> <C> <C> <C> <C>
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (A) NET ASSETS
COMMON STOCKS
BANKS
45,400 REPUBLIC SEC FINL CORP 468,059.65 324,893.75
--------------- ---------------
468,059.65 324,893.75 0.55%
BUSINESS SERVICES
99,700 ALIGN RITE INTL INC (b) 1,459,837.56 2,187,168.75
62,800 ARCHITEL SYS CORP (b) 795,226.36 855,650.00
54,500 ARMOR HLDGS INC (b) 580,077.25 715,312.50
45,300 CORNELL CORRECTIONS INC (b) 568,396.25 379,387.50
18,700 DSP GROUP INC (b) 632,801.85 1,739,100.00
19,800 EDWARDS J D & CO (b) 276,913.41 591,525.00
27,900 ENGINEERED SUPPORT SYS INC 376,894.55 334,800.00
94,100 MULTI LINK TELECOMMUNICATIONS (b) 499,997.50 776,325.00
38,700 PENTASTAR COMMUNICATIONS INC (b) 387,000.00 582,918.75
14,999 RADISYS CORP (b) 371,369.56 764,923.50
97,600 RMI NET INC (b) 447,774.06 811,300.00
68,400 SUPERIOR UNIFORM GROUP INC 550,620.00 615,600.00
--------------- ---------------
6,946,908.35 10,354,011.00 17.49%
CAPITAL GOODS
82,100 BOLT TECHNOLOGY CORP (b) 185,482.38 313,006.25
47,450 DEL GLOBAL TECHNOLOGIES CORP (b) 399,929.35 367,737.50
19,500 GASONICS INTL CORP (b) 82,988.72 385,125.00
10,800 HELIX TECHNOLOGY CORP 112,301.44 483,975.00
37,950 HERLEY INDUSTRIES INC (b) 282,901.35 576,365.62
23,400 HUSSMANN INTL INC 391,503.96 352,462.50
12,450 IMCO RECYCLING INC 135,930.48 157,181.25
62,600 NORTHWEST PIPE CO (b) 978,421.04 876,400.00
32,200 PARLEX CORP (b) 442,202.48 847,262.50
20,600 PENN ENGR & MFG CORP (b) 459,361.25 476,375.00
12,000 TEXAS INDS INC 383,320.24 510,750.00
25,800 U S AGGREGATES INC 301,490.10 309,600.00
--------------- ---------------
4,155,832.79 5,656,240.62 9.56%
CONSUMER DURABLES
52,500 CALLAWAY GOLF CO 661,809.92 928,593.75
58,500 NOBLE INTL LTD (b) 654,002.26 840,937.50
28,200 PULASKI FURNITURE CORP 643,768.50 437,100.00
60,800 ROWE COS 582,910.77 513,000.00
--------------- ---------------
2,542,491.45 2,719,631.25 4.59%
CONSUMER SERVICES
56,400 REMEC INC (b) 627,959.11 1,438,200.00
--------------- ---------------
627,959.11 1,438,200.00 2.43%
ENERGY
8,000 DRIL QUIP INC (b) 153,026.40 243,000.00
60,700 FOREST OIL CORP (b) 650,035.05 800,481.25
43,000 GULF IS FABRICATION INC (b) 484,165.31 403,125.00
71,900 MIDCOAST ENERGY RES INC 1,104,056.19 1,204,325.00
18,250 OCEANEERING INTL INC (b) 264,798.24 272,609.37
35,750 ST MARY LD & EXPL CO 663,257.61 884,812.50
50,300 TEEKAY SHIPPING CORP 777,697.29 801,656.25
89,000 TRICO MARINE SVCS INC (b) 645,019.82 628,562.50
49,600 WILLBROS GROUP INC (b) 351,942.95 229,400.00
--------------- ---------------
5,093,998.86 5,467,971.87 9.24%
See accompanying notes to investments in securities 6
<PAGE>
CLEARWATER SMALL CAP FUND
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1999
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (A) NET ASSETS
FINANCIAL SERVICES
13,539 AMERUS LIFE HLDGS INC 402,635.52 311,397.00
66,500 FACTUAL DATA CORP (b) 538,679.38 532,000.00
65,900 FREEDOM SECS CORP 969,001.88 741,375.00
71,100 GAINSCO INC 448,080.00 382,162.50
76,600 GILMAN CIOCIA INC (b) 713,433.58 627,162.50
45,800 LONDON PAC GROUP LTD 623,969.63 1,648,800.00
42,510 PACIFIC CREST CAP INC 372,876.62 542,002.50
58,450 PENN AMERICA GROUP INC 588,131.19 452,987.50
21,800 PENN TREATY AMERN CORP 364,894.05 343,350.00
13,150 QUEENS CNTY BANCORP 193,384.11 356,693.75
--------------- ---------------
5,215,085.96 5,937,930.75 10.03%
HEALTH CARE
46,400 HANGER ORTHOPEDIC GROUP (b) 580,714.75 464,000.00
18,500 ICN PHARMACEUTICALS INC 180,582.54 468,281.25
33,700 MORRISON MGMT SPECIALISTS INC 657,445.82 726,656.25
29,750 OCULAR SCIENCES INC (b) 582,669.38 561,531.25
133,000 ORTHOLOGIC CORP (b) 369,206.78 340,812.50
1 PER SE TECHNOLOGIES INC (b) 9.09 8.40
41,200 RIGHTCHOICE MANAGED CARE INC (b) 453,875.00 473,800.00
171,000 UROCOR INC (b) 918,574.92 716,062.50
--------------- ---------------
3,743,078.28 3,751,152.15 6.34%
RAW MATERIALS
66,100 CHIEFTAIN INTL INC (b) 1,137,057.63 1,140,225.00
21,150 COMMERCIAL METALS CO 598,874.13 717,778.12
10,300 SPARTECH CORP 115,168.38 332,175.00
--------------- ---------------
1,851,100.14 2,190,178.12 3.70%
RETAIL
18,900 AMES DEPT STORES INC (b) 460,549.22 544,556.25
45,600 DEB SHOPS INC 522,426.07 843,600.00
93,300 ELDER BEERMAN STORES CORP (b) 977,395.34 478,162.50
--------------- ---------------
1,960,370.63 1,866,318.75 3.15%
TECHNOLOGY
92,000 AEROFLEX INC (b) 1,106,448.25 954,500.00
37,400 AMKOR TECHNOLOGY INC (b) 303,387.05 1,056,550.00
12,700 APPLIED SCIENCE & TECH INC (b) 186,348.35 422,076.56
54,000 ASM INTERNATIONAL N V (b) 571,044.47 1,242,000.00
52,600 BROOKTROUT INC (b) 846,587.67 976,387.50
33,000 CATALYST INTL INC (b) 273,404.49 420,750.00
128,250 CERPROBE CORP (b) 1,064,321.48 945,843.75
36,900 COM21 INC (b) 635,453.07 827,943.75
44,150 GALILEO TECHNOLOGY LTD (b) 893,707.51 1,065,118.75
91,600 IKOS SYS INC (b) 682,246.46 887,375.00
44,650 INTERVOICE INC (b) 525,524.99 1,038,112.50
12,500 INTEST CORP (b) 216,560.75 225,000.00
26,000 NANOMETRICS INC (b) 172,930.49 523,250.00
25,000 NEWMARK HOMES CORP (b) 180,035.62 150,000.00
95,900 OPTI INC (b) 215,838.21 509,468.75
12,600 PHOTRONICS INC (b) 281,798.72 360,675.00
34,600 RADCOM LTD (b) 225,025.50 247,606.25
15,300 SYMANTEC CORP (b) 413,234.30 896,962.50
40,100 SYMIX SYS INC (b) 440,518.29 731,825.00
46,000 S3 INC (b) 449,714.95 531,875.00
27,800 WATKINS JOHNSON CO. (b) 653,881.53 1,112,000.00
--------------- ---------------
10,338,012.15 15,125,320.31 25.55%
See accompanying notes to investments in securities 7
<PAGE>
CLEARWATER SMALL CAP FUND
SCHEDULE OF INVESTMENTS AT DECEMBER 31, 1999
FACE PERCENT
AMOUNT MARKET OF
OR SHARES SECURITY COST VALUE (A) NET ASSETS
TRANSPORTATION
134,150 ANANGEL AMERN SHIPHOLDINGS LTD (b) 623,760.45 721,056.25
--------------- ---------------
623,760.45 721,056.25 1.22%
UTILITIES
13,500 CONNECTICUT WTR SVC INC 321,648.15 432,000.00
23,700 PROVIDENCE ENERGY CORP 438,154.75 879,862.50
--------------- ---------------
759,802.90 1,311,862.50 2.22%
CASH EQUIVALENTS
CASH OR CASH EQUIVALENT
3,305,390.53 SSGA MONEY MARKET 3,305,390.53 3,305,390.53 5.58%
--------------- --------------- --------------
Grand Total (c) 47,631,851.25 60,170,157.85 101.65%
=============== =============== ==============
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES
(a)Securities are valued in accordance with procedures
described in note 2 to the financial statements.
(b)Currently non-income producing assets.
(c)At December 31, 1999, the cost for Federal income
tax purposes was $47,631,851. The aggregate gross
unrealized appreciation and depreciation of
investments in securities based of this cost were
as follows:
Gross unrealized appreciation 15,385,325.81
Gross unrealized depreciation (2,847,019.21)
---------------
Net unrealized appreciation 12,538,306.60
===============
See accompanying notes to investments in securities 7
