N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
N/I NUMERIC INVESTORS
Micro Cap Fund
N/I NUMERIC INVESTORS
Growth Fund
N/I NUMERIC INVESTORS
Growth & Value Fund
N/I NUMERIC INVESTORS
Larger Cap Value Fund
Semi-Annual Report
February 28, 1998
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
LETTER TO SHAREHOLDERS
March 11, 1998
Fellow Shareholder:
We are pleased to report the semi-annual results of the N/I NUMERIC INVESTORS
FAMILY OF FUNDS for the period ending February 28, 1998. As in past semi-annual
shareholder letters, we will describe the market environment and portfolio
returns.
MARKET ENVIRONMENT
For equity investors, the past six months have felt like a bit of a roller
coaster ride. Growth stocks in general, and smaller cap growth stocks in
particular, were punished in the last calendar quarter of 1997 as the market
reacted to anticipated earnings weakness in companies with exposure to the
weakening Asian economies. Many of these are technology stocks which had been
trading at relatively high multiples of earnings and book value due to recent
earnings growth that exceeded market expectations. Other fast growing stocks
were also punished as long-term earnings growth rates were called into question
due to uncertainty over the impact that the Asian economic travails would have.
The market's "shoot now ask questions later" mentality is particularly evident
when the market is selling at higher multiples, such as has been the case
recently. Larger cap stocks and cheaper stocks were spared much of the
bloodletting as the equity market indices characterized by this type of company
experienced only a modest retrenchment.
Subsequent to the late-1997 sell-off, February witnessed a healthy rebound
across the board. It is never clear whether recent trends will remain in place;
however, one thing we are more confident of is that volatility is likely to
remain higher than it was earlier in this decade. At this late point in the
economic cycle, with earnings growth inevitably needing to slow, and with
continuing mixed signals between wage pressures and commodity disinflation, we
would expect to see the market reacting on more of a hair-trigger to any
perception of economic change. An example of this was evidenced last fall with
the Asian crisis, and is likely to be repeated with another, probably
unanticipated, economic or political event.
PORTFOLIO RETURNS
The six month return through February 28, 1998 for the N/I NUMERIC INVESTORS
Growth portfolio was +1.25%, compared to its benchmark the Russell 2500 Growth
Index, an unmanaged index of smaller company growth stocks, which returned
+5.53%. This disappointing outcome can be attributed to poor model returns and
some unsuccessful sector exposures of the portfolio relative to its benchmark.
Most of the difficulty related to technology and consumer noncyclical stocks,
especially those with higher earnings growth rates. Modest sector over-weights
relative to benchmark in technology stocks also hurt performance.
Our Growth & Value portfolio delivered very strong absolute, but modestly
negative market-relative returns over the last six months, generating a +13.01%
return compared with the Standard & Poor's MidCap 400 Index return of +13.27%.
Financial and basic industry stocks contributed to good performance, as did our
investment in relatively cheaper value stocks, but some of our technology
investments performed poorly.
1
<PAGE>
The Micro Cap portfolio returned +6.16% over the same period, which compares
somewhat unfavorably with the +6.44% return of its benchmark, the Russell 2000
Growth Index of small company growth stocks. Similar to our Growth portfolio,
technology stocks provided much of the action, though in Micro Cap we had a more
equal balance of winning and losing stocks in this sector.
Larger Cap Value, started on December 9, 1997, experienced a healthy return,
both in absolute and relative terms. For the period December 10, 1997
(commencement of investment operations) through February 28, 1998 the Fund
returned +9.17% for the two and one-half month period, which exceeded its
benchmark Russell 1000 Value Index return of +5.38%, by a healthy +3.79%. This
is too short a time horizon to draw any conclusions, so we won't comment
further.
PERFORMANCE ATTRIBUTION
As usual, we assign credit or blame for our portfolios' market-relative
performance to how well our quantitative stock selection models forecast returns
over any return period. Our Estrend(TM) model, which measures recent changes to
sell side analysts' earnings forecasts, performed poorly over most of the last
six months. Poor performance can be explained by two factors. The first is the
tendency for the market to ignore the recent estimate trends the model assumes
will continue, due to some macroeconomic shock such as the one that occurred in
Asia last fall. The second is the seasonal tendency for the model to perform
poorly around year-end as the market has more of a longer-term, value
orientation, and less of the short-term momentum orientation that the
Estrend(TM) model has. That said, our Fair Value model which identifies stocks
selling for cheaper multiples than similar stocks was more successful over the
last six months. This tendency of Fair Value to perform well when Estrend(TM) is
working poorly is by design and resulted in better relative performance from the
Growth & Value and Larger Cap Value portfolios, which are more heavily
influenced by the Fair Value model. These portfolios tend to hold stocks which
are more responsive to the Fair Value model, whereas the Growth and Micro Cap
portfolios hold stocks which tend to be more responsive to the Estrend(TM)
model.
We will continue with our investment approach of keeping our assets at
reasonable levels, closing funds to new investment when appropriate, performing
innovative research to improve our investment models, and keeping operating
expenses to a minimum.
Thank you for your investment and your continuing confidence in our investment
strategies and business principles.
Respectfully,
/s/ JOHN C. GOBLE, JR.
John C. Bogle, Jr., CFA
Director of Portfolio Management
Numeric Investors L.P.
2
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N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
Comparison of Change in Value of $10,000 Investment in
N/I NUMERIC INVESTORS Micro Cap Fund(1)(2) vs. Russell 2000 Growth Index
(unaudited)
(LINE CHART)
[GRAPHIC OMITTED}
The following are the plot points for Micro Cap Fund Chart
Micro Cap Fund Russell 2000 Growth Index
6/3/96 $10,000 $10000
8/31/96 $9,725 $8,815.78
11/30/96 $11,392 $9,116.86
2/28/97 $11,426 $8,951.58
5/31/97 $12,194 $9,459.02
8/31/97 $15,405 $10,588.8
11/30/97 $15,547 $10,490.9
2/28/98 $16,354 $11,272.1
- --------------------------------------------------------
Micro Cap Fund $16,354
Russell 2000 Growth Index $11,272
- --------------------------------------------------------
- ---------------------------------------------------------------------
Total Returns
ONE YEAR ENDED AVERAGE
FEBRUARY 28, 1998 ANNUAL(3)
----------------- ---------
Micro Cap Fund 43.13% 32.62%
Russell 2000 Growth Index 25.92% 7.11%
- ---------------------------------------------------------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses. Investors should note that the Fund is an
aggressively managed mutual fund while the index is unmanaged, does not
incur expenses and is not available for investment.
(2) Numeric Investors L.P. waived a portion of its advisory fee and agreed to
voluntarily reimburse a portion of the Fund's operating expenses, as
necessary, to maintain the expense limitation as set forth in the notes to
the financial statements. Total returns shown include fee waivers and
expense reimbursements, if any; total returns would have been lower had
there been no assumption of fees and expenses in excess of expense
limitations.
(3) For the period June 3, 1996 (commencement of operations) through February
28, 1998.
3
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH FUND
Comparison of Change in Value of $10,000 Investment in
N/I NUMERIC INVESTORS Growth Fund(1)(2) vs. Russell 2500 Growth Index
(unaudited)
(LINE CHART)
[GRAPHIC OMITTED}
The following are the plot points for Growth Fund Chart
Growth Fund Russell 2500 Growth Index
6/3/96 $10000 $10,000
8/31/96 $9,867 $9,144.23
11/30/96 $10,925 $9,672.72
2/28/97 $10,575 $9,572.28
5/31/97 $11,384 $10,059.7
8/31/97 $13,585 $11,326.7
11/30/97 $13,402 $11,195.7
2/28/98 $13,754 $11,953.8
- --------------------------------------------------------
Growth Fund $13,754
Russell 2500 Growth Index $11,954
- --------------------------------------------------------
- ---------------------------------------------------------------------
Total Returns
ONE YEAR ENDED AVERAGE
FEBRUARY 28, 1998 ANNUAL(3)
----------------- ---------
Growth Fund 30.07% 20.07%
Russell 2500 Growth Index 24.88% 10.79%
- ---------------------------------------------------------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses. Investors should note that the Fund is an
aggressively managed mutual fund while the index is unmanaged, does not
incur expenses and is not available for investment.
(2) Numeric Investors L.P. waived a portion of its advisory fee and agreed to
voluntarily reimburse a portion of the Fund's operating expenses, as
necessary, to maintain the expense limitation as set forth in the notes to
the financial statements. Total returns shown include fee waivers and
expense reimbursements, if any; total returns would have been lower had
there been no assumption of fees and expenses in excess of expense
limitations.
(3) For the period June 3, 1996 (commencement of operations) through February
28, 1998.
4
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH & VALUE FUND
Comparison of Change in Value of $10,000 Investment in
N/I NUMERIC INVESTORS Growth & Value Fund(1)(2) vs. S&P MidCap 400 Index
(unaudited)
(LINE CHART)
[GRAPHIC OMITTED}
The following are the plot points for Growth & Value Fund Chart
Growth & Value Fund S&P MidCap 400 Index
6/3/96 $10,000 $10,000
8/31/96 $9,633 $9,713.02
11/30/96 $11,158 $10,738.2
2/28/97 $11,334 $11,061.9
5/31/97 $12,397 $11,814.8
8/31/97 $14,364 $13,333.3
11/30/97 $14,732 $13,687.6
2/28/98 $16,232 $15,103.5
- ---------------------------------------------
Growth & Value Fund $16,232
S&P MidCap 400 Index $15,103
- ---------------------------------------------
- ---------------------------------------------------------------------
Total Returns
ONE YEAR ENDED AVERAGE
FEBRUARY 28, 1998 ANNUAL(3)
----------------- --------
Growth & Value Fund 43.22% 32.05%
S&P MidCap 400 Index 36.53% 26.70%
- ---------------------------------------------------------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses. Investors should note that the Fund is an
aggressively managed mutual fund while the index is unmanaged, does not
incur expenses and is not available for investment.
(2) Numeric Investors L.P. waived a portion of its advisory fee and agreed to
voluntarily reimburse a portion of the Fund's operating expenses, as
necessary, to maintain the expense limitation as set forth in the notes to
the financial statements. Total returns shown include fee waivers and
expense reimbursements, if any; total returns would have been lower had
there been no assumption of fees and expenses in excess of expense
limitations.
(3) For the period June 3, 1996 (commencement of operations) through February
28, 1998.
5
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCKS--95.1%
APPAREL--1.8%
48,700 American Eagle Outfitters, Inc.* ............. $ 1,442,737
37,400 North Face, Inc. (The)*/** ................... 1,028,500
-----------
2,471,237
-----------
AUTOMOBILE PARTS & EQUIPMENT--1.2%
50,400 Standard Products Co. (The)** ................ 1,644,300
-----------
AUTOMOBILES - TRUCKS, MOBIL HOMES--1.6%
38,000 Monaco Coach Corp.* .......................... 1,501,000
20,400 National R.V. Holdings, Inc.* ................ 747,150
-----------
2,248,150
-----------
BEVERAGES--0.7%
18,300 Canandaigua Brands, Inc., Class A* ........... 1,020,225
-----------
BUILDING & CONSTRUCTION--0.6%
21,800 NCI Building Systems, Inc. ................... 861,100
-----------
COMMERCIAL SERVICES--1.1%
31,400 Abacus Direct Corp.*/** ...................... 1,479,725
-----------
COMPUTER COMPONENTS--8.1%
25,800 Apex PC Solutions, Inc.* ..................... 709,500
56,800 ATL Products, Inc.* .......................... 844,900
70,100 Diamond Multimedia Systems, Inc.* ............ 1,003,306
64,600 Digi International, Inc.* .................... 1,566,550
1,600 Genesis Microchip, Inc.* ..................... 21,100
51,200 HMT Technology Corp.*/** ..................... 563,200
32,800 In Focus Systems, Inc.* ...................... 1,309,950
41,000 NeoMagic Corp.* .............................. 758,500
53,300 Pinnacle Systems, Inc.* ...................... 1,605,662
20,400 Qlogic Corp.* ................................ 818,550
24,700 SMART Modular Technologies, Inc.* ............ 691,600
60,800 Xylan Corp.*/** .............................. 1,466,800
-----------
11,359,618
-----------
COMPUTERS, SOFTWARE & SERVICING--17.3%
52,800 3Dfx Interactive, Inc.*/** ................... 1,217,700
8,800 Aspen Technology, Inc. */** .................. 349,800
71,700 AXENT Technologies, Inc.* .................... 1,496,737
20,400 Boole & Babbage, Inc.*/** .................... 683,400
96,900 Brooktrout Technology, Inc.*/** .............. 1,526,175
10,400 Complete Business Solutions, Inc.*/** ........ 707,200
42,800 Computer Learning Centers, Inc.** ............ 1,575,575
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS, SOFTWARE & SERVICING--(CONTINUED)
27,200 Hyperion Software Corp.* ..................... $ 1,118,600
31,700 Infinium Software, Inc.* ..................... 534,937
24,200 Information Management Resources, Inc.*/** ... 1,158,575
26,100 JDA Software Group, Inc.* .................... 1,262,587
59,700 New Era of Networks, Inc.* ................... 1,119,375
88,900 Open Market, Inc.*/** ........................ 1,466,850
86,900 Platinum Software Corp.* ..................... 1,651,100
41,600 QAD, Inc.* ................................... 644,800
51,600 QuadraMed Corp.*/** .......................... 1,644,750
113,400 Rogue Wave Software* ......................... 1,474,200
90,000 Summit Design, Inc.* ......................... 1,260,000
50,900 Syntel, Inc.*/** ............................. 1,374,300
20,000 THQ, Inc.* ................................... 562,500
70,300 XcelleNet, Inc.*/** .......................... 1,370,850
-----------
24,200,011
-----------
COSMETICS--0.5%
33,100 Nu Skin Asia Pacific, Inc.*/** ............... 750,956
-----------
DISTRIBUTION - WHOLESALE--1.0%
28,500 Daisytek International Corp.*/** ............. 1,353,750
-----------
ELECTRICAL EQUIPMENT--3.4%
66,700 Applied Science & Technology, Inc.* .......... 1,000,500
19,700 C&D Technologies, Inc. ....................... 1,029,325
12,800 General Cable Corp. .......................... 530,400
71,000 Pioneer-Standard Electronics, Inc. ........... 1,171,500
60,300 Vivid Technologies, Inc.* .................... 979,875
-----------
4,711,600
-----------
ELECTRICAL LIGHTING & WIRING EQUIPMENT--1.0%
30,800 Chicago Miniature Lamp, Inc.*/** ............. 1,439,900
-----------
ELECTRONICS--0.9%
68,500 Aeroflex, Inc.*/** ........................... 783,469
23,500 World Access, Inc.* .......................... 528,750
-----------
1,312,219
-----------
FINANCIAL SERVICES--5.4%
40,200 AMRESCO, Inc.*/** ............................ 1,356,750
55,500 Doral Financial Corp. ........................ 1,498,500
20,400 HealthCare Financial Partners, Inc.* ......... 838,950
75,000 IMC Mortgage Co.* ............................ 881,250
21,000 Metris Companies, Inc.** ..................... 945,000
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--(CONTINUED)
62,400 Resource Bancshares Mortgage
Group, Inc. ................................... $ 971,100
40,200 Sirrom Capital Corp.** .......................... 1,090,425
----------
7,581,975
----------
FLORAL PRODUCTS--0.8%
48,900 U.S.A. Floral Products, Inc.* ................... 1,167,487
----------
FOOD & AGRICULTURE--0.5%
26,500 AgriBioTech, Inc.* .............................. 382,594
30,500 Pilgrim's Pride Corp. ........................... 327,875
----------
710,469
----------
HEALTHCARE--3.2%
32,500 Access Health, Inc.*/** ......................... 1,178,125
55,000 CareMatrix Corp.* ............................... 1,375,000
27,650 RehabCare Group, Inc.* .......................... 663,600
37,500 Res-Care, Inc.*/** .............................. 1,256,250
----------
4,472,975
----------
HOUSEHOLD PRODUCTS--1.0%
38,600 Central Garden & Pet Co.* ....................... 1,341,350
----------
HOUSING & CONSTRUCTION PRODUCTS--1.0%
43,800 NVR, Inc.* ...................................... 1,418,025
----------
INDUSTRIAL MACHINERY--0.8%
48,700 Terex Corp.* .................................... 1,162,712
----------
INSURANCE - TITLE INSURANCE--0.8%
40,100 Fidelity National Financial, Inc.** ............. 1,172,925
----------
LEASING--0.9%
48,700 Leasing Solutions, Inc.*/** ..................... 1,272,287
----------
LEISURE & ENTERTAINMENT--2.6%
44,100 Dover Downs Entertainment, Inc. ................. 1,190,700
82,100 Grand Casinos, Inc.*/** ......................... 1,252,025
58,500 Signature Resorts, Inc.*/** ..................... 1,213,875
----------
3,656,600
----------
MACHINERY--3.0%
57,600 Chart Industries, Inc. .......................... 1,425,600
41,450 Graco, Inc. ..................................... 1,222,775
42,500 JLK Direct Distribution, Inc., Class A* ......... 1,593,750
----------
4,242,125
----------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
MEDICAL & MEDICAL SERVICES--4.8%
49,700 Complete Management, Inc.* ........................ $ 549,806
60,600 FPA Medical Management, Inc.*/** .................. 1,401,375
44,500 Hanger Orthopedic Group, Inc.* .................... 600,750
71,800 Hooper Holmes, Inc. ............................... 1,328,300
54,100 Osteotech, Inc.* .................................. 1,264,588
49,100 United Wisconsin Services, Inc. ................... 1,522,100
----------
6,666,919
----------
MEDICAL INSTRUMENTS & SUPPLIES--3.6%
64,800 Cyberonics, Inc.* ................................. 1,563,300
47,400 Ocular Sciences, Inc.* ............................ 1,072,425
85,100 Premier Laser Systems, Inc.* ...................... 909,506
26,300 Theragenics Corp.* ................................ 1,561,563
----------
5,106,794
----------
METALS--0.8%
46,500 RMI Titanium Co.*/** .............................. 1,104,375
----------
OIL & GAS FIELD EXPLORATION--1.3%
66,100 Evergreen Resources, Inc.* ........................ 1,082,388
6,000 Patterson Energy, Inc.* ........................... 60,000
20,600 Stone Energy Corp.* ............................... 713,275
----------
1,855,663
----------
OIL EQUIPMENT & SERVICES--1.8%
47,700 Dawson Geophysical Co.*/** ........................ 816,863
15,600 Pool Energy Service Co.* .......................... 368,550
32,500 Veritas DGC, Inc.* ................................ 1,342,656
----------
2,528,069
----------
PAPER & FOREST PRODUCTS--1.1%
81,000 M.D.C. Holdings, Inc.*/** ......................... 1,518,750
----------
PHARMACEUTICALS--0.9%
30,600 Medicis Pharmaceutical Corp., Class A*/** ......... 1,313,888
----------
PRINTING & PUBLISHING--1.0%
58,300 CMP Media, Inc.* .................................. 1,377,338
----------
RECREATIONAL--1.8%
43,700 Bally Total Fitness Holding Corp.* ................ 1,196,288
63,100 Coastcast Corp.* .................................. 1,309,325
----------
2,505,613
----------
RESEARCH--0.7%
39,900 Kendle International, Inc.* ....................... 937,650
----------
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
RESTAURANTS--1.1%
51,100 Showbiz Pizza Time, Inc.* ..................... $ 1,481,900
------------
RETAIL - MERCHANDISING--1.1%
102,500 Ames Department Stores, Inc.* ................. 1,601,563
------------
RETAIL - SPECIALTY APPAREL--2.7%
33,500 Abercrombie & Fitch Co.*/** ................... 1,155,750
84,100 Ashworth, Inc.*/** ............................ 1,172,144
19,700 dELiA*s, Inc.*/** ............................. 522,050
23,400 Genesco, Inc.* ................................ 321,750
18,200 Wet Seal, Inc. (The), Class A* ................ 558,513
------------
3,730,207
------------
RETAIL - SPECIALTY COMPUTERS--0.5%
58,300 Creative Computers, Inc.* ..................... 699,600
------------
SERVICES - EMPLOYMENT AGENCIES--1.5%
80,700 RCM Technologies, Inc.* ....................... 1,492,950
21,400 Staff Leasing, Inc.*/** ....................... 593,850
------------
2,086,800
------------
STEEL PIPE & TUBES--0.3%
25,600 Maverick Tube Corp.*/** ....................... 497,600
------------
TELECOMMUNICATIONS--0.9%
36,600 ICG Communications, Inc.*/** .................. 1,230,675
------------
TELECOMMUNICATIONS EQUIPMENT--3.5%
43,350 Davox Corp.* .................................. 1,387,200
65,000 Digital Microwave Corp.*/** ................... 1,194,375
8,100 Mosiax, Inc.* ................................. 79,481
49,000 Premisys Communications, Inc.* ................ 1,163,750
26,700 Tekelec, Inc.* ................................ 1,091,363
------------
4,916,169
------------
TOBACCO--0.8%
65,900 General Cigar Holdings, Inc.*/** .............. 1,095,588
------------
TOYS--0.4%
26,300 Play By Play Toy & Novelties, Inc.* ........... 529,288
------------
- -------------------------------------------------------------------------------
MARKET
SHARES VALUE
- -------------------------------------------------------------------------------
TRANSPORTATION--2.5%
20,000 Allied Holdings, Inc.* ...................... $ 430,000
26,100 Gulfmark Offshore, Inc.*/** ................. 639,450
22,700 Hvide Marine, Inc.*/** ...................... 431,300
33,100 Landair Services, Inc.* ..................... 959,900
34,400 Varlen Corp. ................................ 1,087,900
------------
3,548,550
------------
VITAMINS & NUTRITIONAL SUPPLIES--1.0%
29,800 NBTY, Inc.* ................................. 1,387,562
------------
WASTE MANAGEMENT--0.9%
34,200 American Disposal Services, Inc.* ........... 1,269,675
------------
WHOLESALE - SPECIALTY EQUIPMENT--0.9%
56,700 ScanSource, Inc.* ........................... 1,226,137
------------
Total Common Stocks
(Cost $120,351,667) ....................... 133,268,094
------------
PRINCIPAL
AMOUNT (000'S)
- --------------
SHORT-TERM INVESTMENT--8.6%
REPURCHASE AGREEMENT--8.6%
12,125 Bear, Stearns & Co. Inc.
(Agreement dated 2/27/98 to be
repurchased at $12,130,714)
5.460%, 03/02/98
(Cost $12,125,197) (Note 6) ............... 12,125,197
------------
Total Investments--103.7%
(Cost $132,476,864) ....................... 145,393,291
------------
Liabilities in Excess of
Other Assets--(3.7%) ..................... (5,246,601)
------------
Net Assets--100.0% .......................... $140,146,690
============
- -----------
* Non-income producing.
** Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------
MARKET
SHARES VALUE
- -------------------------------------------------------------------------------
COMMON STOCKS--95.9%
AEROSPACE--0.4%
6,900 Alliant Techsystems, Inc.* .................... $ 433,406
------------
AIRLINES--1.9%
51,000 America West Airlines, Inc.* .................. 1,265,437
5,900 Atlantic Coast Airlines, Inc.*/** ............. 255,912
22,200 SkyWest, Inc. ................................. 865,800
------------
2,387,149
------------
APPAREL--3.1%
7,400 Jones Apparel Group, Inc.* .................... 407,000
30,600 Nautica Enterprises, Inc.* .................... 881,662
46,500 North Face, Inc. (The)*/** .................... 1,278,750
25,300 Tommy Hilfiger Corp.* ......................... 1,355,131
------------
3,922,543
------------
BEVERAGES--0.9%
20,600 Canandaigua Brands, Inc., Class A* ............ 1,148,450
------------
BUILDING PRODUCTS--1.0%
21,400 Texas Industries, Inc. ........................ 1,209,100
------------
COMMERCIAL PRINTING--0.5%
7,300 Consolidated Graphics, Inc.*/** ............... 388,269
6,150 Mail-Well, Inc.*/** ........................... 245,231
------------
633,500
------------
COMMERCIAL SERVICES--1.9%
18,700 Abacus Direct Corp.* .......................... 881,237
43,100 Caribiner International, Inc.* ................ 1,449,237
------------
2,330,474
------------
COMPUTER & OFFICE EQUIPMENT--1.2%
35,400 Lexmark International Group, Inc.,
Class A* .................................... 1,513,350
------------
COMPUTER COMPONENTS--4.7%
31,300 Apex PC Solutions, Inc.* ...................... 860,750
1,400 Genesis Microchip, Inc.* ...................... 18,462
31,600 HMT Technology Corp.*/** ...................... 347,600
26,700 In Focus Systems, Inc.* ....................... 1,066,331
52,200 NeoMagic Corp.* ............................... 965,700
36,500 SMART Modular Technologies, Inc.* ............. 1,022,000
68,900 Xylan Corp.*/** ............................... 1,662,212
------------
5,943,055
------------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS, SOFTWARE & SERVICING--15.4%
6,400 Aspen Technology, Inc.*/** ..................... $ 254,400
57,400 AXENT Technologies, Inc.*/** ................... 1,198,225
22,100 Ciber, Inc.* ................................... 1,475,175
29,100 Citrix Systems, Inc.* .......................... 1,224,019
11,600 Complete Business Solutions, Inc.*/** .......... 788,800
17,600 Computer Horizons Corp.* ....................... 918,500
42,700 Computer Learning Centers, Inc.*/** ............ 1,571,894
23,200 Compuware Corp.* ............................... 977,300
75,800 GT Interactive Software Corp.*/** .............. 587,450
25,700 Hyperion Software Corp.* ....................... 1,056,912
19,700 Information Management Resources,
Inc.*/** ..................................... 943,137
66,800 Informix Corp.* ................................ 521,875
13,400 International Network Services* ................ 373,525
20,400 Mastech Corp.*/** .............................. 1,073,550
45,300 Open Market, Inc.* ............................. 747,450
40,200 QuadraMed Corp.*/** ............................ 1,281,375
26,113 Siebel Systems, Inc.* .......................... 1,605,949
14,300 Sterling Software, Inc.* ....................... 753,431
22,400 THQ, Inc.* ..................................... 630,000
20,500 VERITAS Software Corp.*/** ..................... 1,165,937
4,000 Visio Corp.* ................................... 144,000
------------
19,292,904
------------
ELECTRICAL EQUIPMENT--0.7%
21,300 General Cable Corp. ............................ 882,619
------------
ELECTRICAL LIGHTING & WIRING EQUIPMENT--0.3%
8,000 Chicago Miniature Lamp, Inc.*/** ............... 374,000
------------
ELECTRONICS--2.8%
47,600 Aeroflex, Inc.* ................................ 544,425
42,200 Essex International, Inc.* ..................... 1,640,525
26,700 Gentex Corp.* .................................. 861,075
23,200 World Access, Inc.* ............................ 522,000
------------
3,568,025
------------
FINANCIAL SERVICES--4.6%
32,400 AMRESCO, Inc.*/** .............................. 1,093,500
56,300 IMC Mortgage Co.* .............................. 661,525
47,250 Imperial Bancorp* .............................. 1,559,250
13,000 Metris Companies, Inc.** ....................... 585,000
15,000 Money Store, Inc. (The)** ...................... 374,062
53,000 Sirrom Capital Corp.** ......................... 1,437,625
------------
5,710,962
------------
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
FOOD & AGRICULTURE--2.6%
16,400 Michael Foods, Inc. ........................... $ 416,150
32,800 Pilgrim's Pride Corp. ......................... 352,600
24,800 Smithfield Foods, Inc.* ....................... 784,300
26,000 Suiza Foods Corp.* ............................ 1,685,125
------------
3,238,175
------------
HEALTHCARE--2.3%
38,800 Access Health, Inc.*/** ....................... 1,406,500
28,900 CareMatrix Corp.* ............................. 722,500
20,800 Res-Care, Inc.*/** ............................ 696,800
------------
2,825,800
------------
HOTELS--1.3%
35,700 Rio Hotel and Casino, Inc.* ................... 1,015,219
36,800 Servico, Inc.* ................................ 630,200
------------
1,645,419
------------
HOUSEHOLD PRODUCTS--0.8%
34,200 Blyth Industries, Inc.*/** .................... 1,028,137
------------
INDUSTRIAL MACHINERY--0.9%
16,800 Asyst Technologies, Inc.* ..................... 457,800
30,000 Terex Corp.* .................................. 716,250
------------
1,174,050
------------
INSURANCE - TITLE INSURANCE--0.9%
38,160 Fidelity National Financial, Inc.** ........... 1,116,180
------------
LEISURE & ENTERTAINMENT--1.9%
37,900 Fairfield Communities, Inc.* .................. 848,013
75,700 Signature Resorts, Inc.* ...................... 1,570,775
------------
2,418,788
------------
MANUFACTURING--0.7%
34,700 Hexcel Corp.*/** .............................. 913,044
------------
MEDICAL & MEDICAL SERVICES--2.4%
74,700 FPA Medical Management, Inc.*/** .............. 1,727,437
18,500 Integrated Health Services, Inc.** ............ 627,844
27,800 Osteotech, Inc.* .............................. 649,825
------------
3,005,106
------------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
MEDICAL INSTRUMENTS & SUPPLIES--5.4%
20,800 Arterial Vascular Engineering, Inc.*/** ....... $ 1,703,000
34,500 Cyberonics, Inc.* ............................. 832,313
15,700 Safeskin Corp.* ............................... 963,588
27,500 Theragenics Corp.* ............................ 1,632,812
19,300 Waters Corp.* ................................. 954,144
20,400 Wesley Jessen VisionCare, Inc.* ............... 691,050
------------
6,776,907
------------
METALS--0.6%
31,300 RMI Titanium Co.*/** .......................... 743,375
------------
OFFICE & BUSINESS EQUIPMENT--0.9%
19,400 United Stationers, Inc.* ...................... 1,161,575
------------
OIL & GAS FIELD EXPLORATION--0.0%
4,200 Patterson Energy, Inc.* ....................... 42,000
------------
OIL & GAS FIELD MACHINERY & EQUIPMENT--1.0%
5,800 Input/Output, Inc.* ........................... 125,063
45,400 Varco International, Inc.* .................... 1,129,325
------------
1,254,388
------------
OIL EQUIPMENT & SERVICES--2.7%
49,300 Key Energy Group, Inc.* ....................... 871,994
16,400 Pool Energy Service Co.* ...................... 387,450
9,400 SEACOR SMIT, Inc.*/** ......................... 525,813
37,400 Veritas DGC, Inc.* ............................ 1,545,088
------------
3,330,345
------------
PHARMACEUTICALS--1.3%
38,700 Medicis Pharmaceutical Corp.,
Class A*/** ................................. 1,661,681
------------
RESTAURANTS--1.7%
39,510 CKE Restaurants, Inc. ......................... 1,676,706
17,400 Showbiz Pizza Time, Inc.* ..................... 504,600
------------
2,181,306
------------
RETAIL - CATALOG & MAIL ORDER HOUSES--1.2%
59,200 Fingerhut Companies, Inc. ..................... 1,468,900
------------
RETAIL - FOOD--1.3%
26,800 Whole Foods Market, Inc.*/** .................. 1,639,825
------------
RETAIL - FURNITURE STORES--1.0%
22,400 Ethan Allen Interiors, Inc. ................... 1,248,800
------------
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
RETAIL - SPECIALTY--2.2%
24,000 Best Buy Co., Inc.*/** ........................ $ 1,431,000
11,400 Borders Group, Inc.* .......................... 379,763
10,400 Michaels Stores, Inc.*/** ..................... 353,600
22,600 Trans World Entertainment Corp.* .............. 622,913
------------
2,787,276
------------
RETAIL - SPECIALTY APPAREL--5.0%
38,400 Abercrombie & Fitch Co.*/** ................... 1,324,800
17,200 Action Performance Companies, Inc.*/** ........ 634,250
21,900 Dress Barn, Inc. (The)* ....................... 639,206
25,900 Genesco, Inc.* ................................ 356,125
33,200 Goody's Family Clothing, Inc.*/** ............. 1,245,000
38,550 Pacific Sunwear of California*/** ............. 1,334,794
24,600 Wet Seal, Inc. (The), Class A* ................ 754,913
------------
6,289,088
------------
SERVICES - EMPLOYMENT AGENCIES--0.9%
29,100 Labor Ready, Inc.*/** ......................... 789,338
9,000 Robert Half International, Inc.* .............. 407,250
------------
1,196,588
------------
STEEL PIPE & TUBES--0.7%
44,700 Maverick Tube Corp.* .......................... 868,856
------------
TELECOMMUNICATIONS--1.7%
41,900 Premiere Technologies, Inc.*/** ............... 1,314,613
27,800 Tel-Save Holdings, Inc.*/** ................... 769,713
------------
2,084,326
------------
TELECOMMUNICATIONS EQUIPMENT--7.5%
31,800 Adtran, Inc.*/** .............................. 950,025
51,300 Andrew Corp.*/** .............................. 1,417,163
34,050 Davox Corp.* .................................. 1,089,600
83,000 Digital Microwave Corp.* ...................... 1,525,125
59,300 Premisys Communications, Inc.* ................ 1,408,375
37,375 Superior TeleCom, Inc. ........................ 1,459,961
38,400 Tekelec, Inc.* ................................ 1,569,600
------------
9,419,849
------------
TOBACCO--0.6%
46,200 General Cigar Holdings, Inc.* ................. 768,075
------------
TRANSPORTATION--0.6%
39,500 Hvide Marine, Inc.*/** ........................ 750,500
------------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
TRANSPORTATION - AIR--0.7%
20,600 Expeditors International of
Washington, Inc.** .......................... $ 834,300
------------
VITAMINS & NUTRITIONAL SUPPLIES--2.6%
34,200 NBTY, Inc.* ................................... 1,592,437
39,000 Rexall Sundown, Inc.*/** ...................... 1,443,000
7,800 Twinlab Corp.* ................................ 253,500
------------
3,288,937
------------
WASTE MANAGEMENT--0.6%
21,900 American Disposal Services, Inc.* ............. 813,038
------------
WHOLESALE - SPECIALTY EQUIPMENT--2.5%
37,250 CHS Electronics, Inc.* ........................ 768,281
43,800 Ingram Micro, Inc., Class A*/** ............... 1,691,775
13,500 Tech Data Corp.* .............................. 627,750
------------
3,087,806
------------
Total Common Stocks
(Cost $110,558,035) ......................... 120,411,977
------------
PRINCIPAL
AMOUNT (000'S)
- ----------------
SHORT-TERM INVESTMENT--5.4%
REPURCHASE AGREEMENT--5.4%
6,782 Bear, Stearns & Co. Inc.
(Agreement dated 02/27/98 to be
repurchased at $6,785,308)
5.460%, 03/02/98
(Cost $6,782,222) (Note 6) .................. 6,782,222
------------
Total Investments -- 101.3%
(Cost $117,340,257) ......................... 127,194,199
------------
Liabilites in Excess of
Other Assets -- (1.3%) ...................... (1,583,466)
------------
Net Assets -- 100.0% .......................... $125,610,733
============
- ----------------
* Non-income producing.
** Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH & VALUE FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCKS--96.2%
AEROSPACE--1.8%
11,300 B.F. Goodrich Co. (The)** ..................... $ 560,056
9,800 Sundstrand Corp. .............................. 592,900
8,900 Thiokol Corp. ................................. 851,062
------------
2,004,018
------------
AIRLINES--1.3%
17,500 UAL Corp.* .................................... 1,489,687
------------
ALUMINUM--0.9%
27,800 Alumax, Inc.*/** .............................. 1,030,337
------------
APPAREL--3.7%
6,100 Fruit of the Loom, Inc., Class A* ............. 195,962
9,900 Jones Apparel Group, Inc.* .................... 544,500
41,100 Nautica Enterprises, Inc.* .................... 1,184,194
25,100 Tommy Hilfiger Corp.*/** ...................... 1,344,419
24,000 Warnaco Group, Inc. (The), Class A ............ 891,000
------------
4,160,075
------------
AUTOMOBILE PARTS & EQUIPMENT--1.4%
13,100 Cummins Engine Co., Inc. ...................... 758,162
2,200 Echlin, Inc. .................................. 111,237
8,000 Lear Corp.* ................................... 423,000
11,500 Meritor Automotive, Inc. ...................... 287,500
------------
1,579,899
------------
AUTOMOBILES & TRUCKS--1.3%
36,900 Chrysler Corp. ................................ 1,436,794
------------
BANKS--7.4%
5,400 Chase Manhattan Corp. ......................... 669,937
35,700 Imperial Bancorp* ............................. 1,178,100
22,300 National City Corp. ........................... 1,455,075
7,200 NationsBank Corp. ............................. 493,200
34,300 North Fork Bancorporation, Inc. ............... 1,172,631
14,500 Pacific Century Financial Corp. ............... 312,656
6,300 Republic New York Corp. ....................... 762,300
9,700 U.S. Bancorp .................................. 1,116,106
16,300 Washington Mutual, Inc. ....................... 1,094,138
------------
8,254,143
------------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
BROKERAGE--2.2%
39,508 Bear Stearns Companies Inc. (The) ............. $ 1,842,060
8,700 Morgan Stanley, Dean Witter, Discover
and Co. ..................................... 606,281
------------
2,448,341
------------
CHEMICALS - SPECIALTY--4.2%
28,100 Engelhard Corp. ............................... 509,312
6,500 Great Lakes Chemical Corp. .................... 316,062
53,500 Millennium Chemicals, Inc. .................... 1,380,969
17,300 PPG Industries, Inc. .......................... 1,121,256
51,600 Solutia Inc. .................................. 1,409,325
------------
4,736,924
------------
COMMERCIAL PRINTING--0.5%
15,700 Valassis Communications, Inc.* ................ 598,562
------------
COMMERCIAL SERVICES--0.5%
11,000 Quintiles Transnational Corp.* ................ 537,625
------------
COMPUTER & OFFICE EQUIPMENT--1.5%
38,700 Lexmark International Group, Inc.,
Class A* .................................... 1,654,425
------------
COMPUTERS--1.3%
34,000 Gateway 2000, Inc.*/** ........................ 1,496,000
------------
COMPUTERS, SOFTWARE & SERVICING--12.4%
19,800 BEA Systems, Inc.* ............................ 532,125
18,500 Ciber, Inc.* .................................. 1,234,875
29,550 Citrix Systems, Inc.* ......................... 1,242,947
18,100 Computer Horizons Corp.* ...................... 944,594
43,800 Compuware Corp.* .............................. 1,845,075
4,000 HBO & Co. ..................................... 216,500
6,500 Paychex, Inc. ................................. 335,562
54,600 Reynolds & Reynolds Co. (The), Class A ........ 1,160,250
9,300 Sanmina Corp.*/** ............................. 741,094
28,233 Siebel Systems, Inc.* ......................... 1,736,329
25,100 Sterling Software, Inc.* ...................... 1,322,456
9,200 Stratus Computer, Inc.* ....................... 461,725
14,400 Symantec Corp.* ............................... 362,700
24,200 VERITAS Software Corp.* ....................... 1,376,375
10,600 Visio Corp.* .................................. 381,600
------------
13,894,207
------------
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH & VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.1%
21,700 Tektronix, Inc. ............................... $ 968,362
8,600 UCAR International, Inc.* ..................... 296,162
------------
1,264,524
------------
ELECTRONICS--1.5%
17,700 Coltec Industries, Inc.* ...................... 461,306
6,700 Eastman Kodak Co. ............................. 439,687
13,300 Johnson Controls, Inc.** ...................... 738,981
------------
1,639,974
------------
ENERGY--2.0%
25,200 CalEnergy Co., Inc.* .......................... 675,675
12,800 DTE Energy Co. ................................ 470,400
36,900 Entergy Corp. ................................. 1,067,794
------------
2,213,869
------------
ENTERTAINMENT--0.4%
6,800 Carnival Corp., Class A ....................... 400,350
------------
FINANCIAL SERVICES--3.9%
14,600 AMRESCO, Inc.* ................................ 492,750
20,000 Countrywide Credit Industries, Inc. ........... 888,750
26,900 Deluxe Corp. .................................. 916,281
19,200 GreenPoint Financial Corp.** .................. 1,425,600
12,500 Money Store, Inc. (The)** ..................... 311,719
7,000 Peoples Heritage Financial Group, Inc. ........ 325,938
------------
4,361,038
------------
FOOD & AGRICULTURE--3.1%
38,200 Interstate Bakeries Corp. ..................... 1,279,700
12,200 McCormick & Co., Inc. ......................... 349,988
13,000 Smithfield Foods, Inc.* ....................... 411,125
21,400 Suiza Foods Corp.* ............................ 1,386,988
------------
3,427,801
------------
HEALTHCARE DIVERSIFIED--3.3%
43,000 Foundation Health Systems, Inc.*/** ........... 1,190,563
33,600 Integrated Health Services, Inc.** ............ 1,140,300
24,100 Wellpoint Health Networks Inc.*/** ............ 1,408,344
------------
3,739,207
------------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.9%
21,500 Blyth Industries, Inc.*/** .................... $ 646,344
29,500 Lancaster Colony Corp. ........................ 1,298,000
9,200 Mohawk Industries, Inc.* ...................... 241,500
------------
2,185,844
------------
INSURANCE - PROPERTY & CASUALTY--1.9%
26,100 Ambac Financial Group, Inc.** ................. 1,389,825
7,900 Everest Reinsurance Holdings, Inc. ............ 291,313
10,100 Orion Capital Corp. ........................... 493,006
------------
2,174,144
------------
MEDICAL INSTRUMENTS & SUPPLIES--5.4%
19,200 Arterial Vascular Engineering, Inc.*/** ....... 1,572,000
20,500 Beckman Instruments, Inc. ..................... 991,688
24,200 Mallinckrodt, Inc. ............................ 939,263
17,500 Safeskin Corp.* ............................... 1,074,063
31,100 Waters Corp.* ................................. 1,537,506
------------
6,114,520
------------
METALS & MINING--2.3%
66,700 AK Steel Holding Corp.** ...................... 1,246,456
12,500 Cyprus Amax Minerals Co. ...................... 204,688
91,300 LTV Corp. (The) ............................... 1,101,306
------------
2,552,450
------------
NEWSPAPER - PUBLISHING & PRINTING--0.5%
12,600 Harte-Hanks Communications, Inc. .............. 547,313
------------
OIL & GAS FIELD EXPLORATION--3.1%
10,000 Kerr-McGee Corp. .............................. 676,250
36,000 MCN Energy Group, Inc.** ...................... 1,325,250
8,900 Murphy Oil Corp. .............................. 444,444
18,800 Occidental Petroleum Corp. .................... 480,575
13,000 Tidewater, Inc. ............................... 578,500
------------
3,505,019
------------
OIL DOMESTIC--2.2%
21,500 National Fuel Gas Co. ......................... 1,002,438
21,300 Pennzoil Co. .................................. 1,425,769
------------
2,428,207
------------
OIL EQUIPMENT & SERVICES--0.7%
23,200 BJ Services Co.*/** ........................... 797,500
------------
OIL INTERNATIONAL--0.9%
29,600 Santa Fe International Corp. .................. 1,048,950
------------
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH & VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--1.0%
8,100 Boise Cascade Corp. ........................... $ 269,831
15,500 Consolidated Papers, Inc. ..................... 899,969
------------
1,169,800
------------
PETROLEUM REFINING--1.6%
49,800 Ultramar Diamond Shamrock Corp. ............... 1,777,238
------------
RESTAURANTS--1.1%
28,450 CKE Restaurants, Inc. ......................... 1,207,347
------------
RETAIL - AUTOMOBILES--0.7%
34,200 Republic Industries, Inc.* .................... 807,975
------------
RETAIL - FOOD--1.0%
18,200 Whole Foods Market, Inc.* ..................... 1,113,613
------------
RETAIL - FURNITURE STORES--0.8%
16,700 Ethan Allen Interiors, Inc. ................... 931,025
------------
RETAIL - GROCERY STORES--1.0%
23,100 Albertson's, Inc. ............................. 1,081,369
------------
RETAIL - SPECIALTY--1.0%
13,300 Best Buy Co., Inc.*/** ........................ 793,013
11,200 Borders Group, Inc.* .......................... 373,100
------------
1,166,113
------------
RETAIL - SPECIALTY APPAREL--1.4%
40,300 Ross Stores, Inc. ............................. 1,586,812
------------
SAVINGS & LOAN ASSOCIATION--1.2%
14,000 Charter One Financial, Inc. ................... 848,313
19,970 Washington Federal, Inc. ...................... 551,671
------------
1,399,984
------------
SERVICES - EMPLOYMENT AGENCIES--1.5%
22,200 AccuStaff, Inc.*/** ........................... 627,150
22,400 Robert Half International, Inc.* .............. 1,013,600
------------
1,640,750
------------
TELECOMMUNICATIONS--2.5%
28,800 Ameritech Corp. ............................... 1,200,600
10,100 Century Telephone Enterprises, Inc. ........... 616,100
13,500 GTE Corp. ..................................... 730,688
5,700 Teleport Communications Group, Inc.,
Class A* .................................... 311,363
------------
2,858,751
------------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT--2.2%
41,500 Advanced Fibre Communications, Inc.* .......... $ 1,242,406
43,200 Andrew Corp.* ................................. 1,193,400
------------
2,435,806
------------
TRANSPORTATION--0.3%
8,100 Illinois Central Corp. ........................ 314,381
------------
VITAMINS & NUTRITION--1.6%
16,200 General Nutrition Companies, Inc.* ............ 643,950
32,300 Rexall Sundown, Inc.*/** ...................... 1,195,100
------------
1,839,050
------------
WHOLESALE - GROCERIES & GENERAL LINE--0.0%
900 SUPERVALU, Inc. ............................... 42,863
------------
WHOLESALE - SPECIALTY EQUIPMENT--2.7%
37,400 CHS Electronics, Inc.* ........................ 771,375
37,700 Ingram Micro, Inc., Class A*/** ............... 1,456,162
16,900 Tech Data Corp.* .............................. 785,850
------------
3,013,387
------------
Total Common Stocks
(Cost $99,154,658) .......................... 108,108,011
------------
PRINCIPAL
AMOUNT (000'S)
- --------------
SHORT-TERM INVESTMENT--7.4%
REPURCHASE AGREEMENT--7.4%
8,341 Bear, Stearns & Co. Inc.
(Agreement dated 02/27/98 to be
repurchased at $8,345,037)
5.460%, 03/02/98
(Cost $8,341,242) (Note 6) .................. 8,341,242
------------
Total Investments -- 103.6%
(Cost $107,495,900) ......................... 116,449,253
------------
Liabilities in Excess of
Other Assets -- (3.6%) ...................... (4,066,340)
------------
Net Assets -- 100.0% .......................... $112,382,913
============
- ----------------
* Non-income producing.
** Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
LARGER CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCKS--95.8%
AEROSPACE--3.2%
1,300 B.F. Goodrich Co. (The) ....................... $ 64,431
700 Gulfstream Aerospace Corp.* ................... 28,350
1,400 Sundstrand Corp. .............................. 84,700
300 Thiokol Corp. ................................. 28,687
1,200 United Technologies Corp. ..................... 107,175
------------
313,343
------------
AIRLINES--2.8%
3,200 America West Airlines, Inc.* .................. 79,400
700 Delta Air Lines, Inc. ......................... 79,144
1,400 UAL Corp.* .................................... 119,175
------------
277,719
------------
ALUMINUM--1.1%
2,800 Alumax, Inc.* ................................. 103,775
------------
APPAREL--1.9%
500 Fruit of the Loom, Inc., Class A* ............. 16,062
400 Jones Apparel Group, Inc.* .................... 22,000
1,000 Tommy Hilfiger Corp.* ......................... 53,563
1,000 Unifi, Inc. ................................... 36,750
1,500 Warnaco Group, Inc. (The), Class A ............ 55,687
------------
184,062
------------
AUTOMOBILE PARTS & EQUIPMENT--1.8%
1,600 Cummins Engine Co., Inc. ...................... 92,600
200 Echlin, Inc. .................................. 10,112
1,400 Lear Corp.* ................................... 74,025
------------
176,737
------------
AUTOMOBILES & TRUCKS--4.4%
4,600 Chrysler Corp. ................................ 179,112
3,700 General Motors Corp. .......................... 255,069
------------
434,181
------------
BANKS--17.0%
3,050 Banc One Corp. ................................ 172,325
1,950 Chase Manhattan Corp. ......................... 241,922
400 Citicorp ...................................... 53,000
2,200 First Union Corp. ............................. 115,912
1,400 KeyCorp ....................................... 98,087
2,800 National City Corp. ........................... 182,700
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
BANKS--(CONTINUED)
3,400 NationsBank Corp. .............................. $ 232,900
3,100 North Fork Bancorporation, Inc. ................ 105,981
1,200 Pacific Century Financial Corp. ................ 25,875
1,000 Republic New York Corp. ........................ 121,000
1,800 U.S. Bancorp ................................... 207,112
1,650 Washington Mutual, Inc. ........................ 110,756
------------
1,667,570
------------
BREWERY--0.2%
500 Anheuser-Busch Companies, Inc. ................. 23,438
------------
BROKERAGE--2.9%
3,200 Bear Stearns Companies Inc. (The) .............. 149,200
1,900 Morgan Stanley, Dean Witter,
Discover and Co. ............................. 132,406
------------
281,606
------------
BUILDING PRODUCTS--0.4%
700 Texas Industries, Inc. ......................... 39,550
------------
CHEMICALS - DIVERSIFIED--0.1%
200 Hercules, Inc. ................................. 9,662
------------
CHEMICALS - SPECIALTY--4.1%
2,600 Engelhard Corp. ................................ 47,125
2,100 Great Lakes Chemical Corp. ..................... 102,112
2,500 Millennium Chemicals, Inc. ..................... 64,531
2,900 PPG Industries, Inc. ........................... 187,956
------------
401,724
------------
COMMERCIAL PRINTING--0.4%
1,000 Valassis Communications, Inc.* ................. 38,125
------------
COMPUTER & OFFICE EQUIPMENT--1.2%
600 Lexmark International Group, Inc.,
Class A* ..................................... 25,650
1,100 Xerox Corp. .................................... 97,556
------------
123,206
------------
COMPUTERS--0.3%
600 Gateway 2000, Inc.* ............................ 26,400
------------
COMPUTERS, SOFTWARE & SERVICING--2.6%
200 Electronic Data Systems Corp. .................. 8,762
500 International Business Machines Corp. .......... 52,219
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
LARGER CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS, SOFTWARE & SERVICING--(CONTINUED)
2,500 Reynolds & Reynolds Co. (The), Class A ........... $ 53,125
1,100 Sterling Software, Inc.* ......................... 57,956
700 Stratus Computer, Inc.* .......................... 35,131
600 Sun Microsystems, Inc.* .......................... 28,575
800 Symantec Corp.* .................................. 20,150
------------
255,918
------------
ELECTRICAL EQUIPMENT--0.7%
1,600 Tektronix, Inc. .................................. 71,400
------------
ELECTRONICS--1.9%
1,100 Coltec Industries, Inc.* ......................... 28,669
1,100 Eastman Kodak Co. ................................ 72,188
1,600 Johnson Controls, Inc.** ......................... 88,900
------------
189,757
------------
ENERGY--3.5%
1,100 CalEnergy Co., Inc.* ............................. 29,494
2,400 Coastal Corp. (The) .............................. 152,700
900 DTE Energy Co. ................................... 33,075
4,500 Entergy Corp. .................................... 130,219
------------
345,488
------------
FINANCIAL SERVICES--4.9%
3,200 Countrywide Credit Industries, Inc. .............. 142,200
1,600 Deluxe Corp. ..................................... 54,500
2,300 Fannie Mae ....................................... 146,769
1,600 GreenPoint Financial Corp. ....................... 118,800
400 Peoples Heritage Financial Group, Inc. ........... 18,625
------------
480,894
------------
FOOD & AGRICULTURE--0.4%
1,100 Interstate Bakeries Corp. ........................ 36,850
------------
HEALTHCARE DIVERSIFIED--2.6%
2,800 Foundation Health Systems, Inc.* ................. 77,525
1,900 Integrated Health Services, Inc.** ............... 64,481
2,000 Wellpoint Health Networks Inc.*/** ............... 116,875
------------
258,881
------------
HOUSEHOLD PRODUCTS--0.3%
500 Kimberly-Clark Corp. ............................. 27,844
------------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
INSURANCE--3.4%
1,400 Allstate Corp. ................................. $ 130,550
200 CIGNA Corp. .................................... 38,200
1,700 Hartford Financial Services Group,
Inc. (The) ................................... 167,025
------------
335,775
------------
MEDICAL INSTRUMENTS & SUPPLIES--1.6%
700 Beckman Instruments, Inc. ...................... 33,862
800 C.R. Bard, Inc. ................................ 27,900
2,400 Mallinckrodt, Inc. ............................. 93,150
------------
154,912
------------
METALS & MINING--0.6%
900 Cyprus Amax Minerals Co. ....................... 14,738
1,200 LTV Corp. (The) ................................ 14,475
700 USX-U.S. Steel Group, Inc. ..................... 24,588
------------
53,801
------------
OIL & GAS FIELD EXPLORATION--5.1%
1,200 Amerada Hess Corp. ............................. 71,175
1,200 Helmerich & Payne, Inc. ........................ 34,725
1,000 Kerr-McGee Corp. ............................... 67,625
1,600 MCN Energy Group, Inc. ......................... 58,900
1,200 Murphy Oil Corp. ............................... 59,925
4,800 Occidental Petroleum Corp. ..................... 122,700
900 Tidewater, Inc. ................................ 40,050
1,200 USX Marathon Group ............................. 41,475
------------
496,575
------------
OIL DOMESTIC--1.0%
1,500 Pennzoil Co. ................................... 100,406
------------
OIL EQUIPMENT & SERVICES--0.4%
1,000 BJ Services Co.*/** ............................ 34,375
------------
PAPER & FOREST PRODUCTS--1.2%
1,400 Boise Cascade Corp. ............................ 46,638
1,700 Mead Corp. (The) ............................... 58,119
500 Westvaco Corp. ................................. 16,250
------------
121,007
------------
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
LARGER CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
PETROLEUM REFINING--3.6%
2,200 Ashland, Inc. .................................. $ 122,513
3,100 Ultramar Diamond Shamrock Corp. ................ 110,631
3,300 Valero Energy Corp. ............................ 117,150
------------
350,294
------------
RETAIL - CATALOG & MAIL ORDER HOUSES--0.3%
1,200 Fingerhut Companies, Inc. ...................... 29,775
------------
RETAIL - GROCERY STORES--1.5%
2,300 Albertson's, Inc. .............................. 107,669
900 Kroger Company* ................................ 38,025
------------
145,694
------------
RETAIL - SPECIALTY APPAREL--1.3%
2,100 Intimate Brands, Inc.** ........................ 56,963
1,800 Ross Stores, Inc. .............................. 70,875
------------
127,838
------------
SAVINGS & LOAN ASSOCIATION--1.3%
700 Charter One Financial, Inc. .................... 42,416
400 Golden West Financial Corp. .................... 35,700
800 H.F. Ahmanson & Company** ...................... 49,950
------------
128,066
------------
TELECOMMUNICATIONS--14.3%
5,400 Ameritech Corp. ................................ 225,113
3,100 AT&T Corp. ..................................... 188,713
3,700 Bell Atlantic Corp. ............................ 332,075
3,400 BellSouth Corp. ................................ 207,400
500 Century Telephone Enterprises, Inc. ............ 30,500
2,500 GTE Corp. ...................................... 135,313
3,700 SBC Communications, Inc. ....................... 279,813
------------
1,398,927
------------
TELECOMMUNICATIONS EQUIPMENT--0.4%
1,400 Andrew Corp.* .................................. 38,675
------------
TRANSPORTATION--0.8%
700 Illinois Central Corp. ......................... 27,169
900 Union Pacific Corp. ............................ 45,900
------------
73,069
------------
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
UTILITIES--0.3%
800 Public Service Enterprise Group, Inc. .......... $ 25,800
------------
WHOLESALE - GROCERIES & GENERAL LINE--0.0%
100 SUPERVALU, Inc. ................................ 4,762
------------
Total Common Stocks
(Cost $8,878,420) ............................ 9,387,881
------------
PRINCIPAL
AMOUNT (000'S)
- --------------
SHORT-TERM INVESTMENT--6.7%
REPURCHASE AGREEMENT--6.7%
656 Bear, Stearns & Co. Inc.
(Agreement dated 02/27/98 to be
repurchased at $656,363)
5.460%, 03/02/98
(Cost $656,064) (Note 6) ..................... 656,064
------------
Total Investments -- 102.5%
(Cost $9,534,484) ............................ 10,043,945
------------
Liabilities in Excess of
Other Assets -- (2.5%) ....................... (249,599)
------------
Net Assets -- 100.0% ........................... $ 9,794,346
============
- -----------
* Non-income producing.
** Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
MICRO CAP GROWTH GROWTH & VALUE LARGER CAP VALUE
FUND FUND FUND FUND
------------ ------------- -------------- ----------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at value (cost -- $132,476,864, $117,340,257,
$107,495,900, $9,534,484, respectively) .................... $145,393,291 $127,194,199 $116,449,253 $10,043,945
Cash (Note 1) ................................................. 181,275 -- -- --
Collateral received for securities loaned (Note 5) ............ 26,119,899 30,964,273 13,092,506 153,977
Receivable for investments sold ............................... 3,035,422 4,471,358 3,997,321 295,332
Receivable for Fund shares sold ............................... 68,630 340,737 1,371,728 61,500
Dividends and interest receivable ............................. 79,070 51,309 115,647 16,913
Receivable from investment adviser ............................ -- -- -- 6,960
Prepaid expenses .............................................. 17,403 17,794 15,960 1,934
------------ ------------ ------------ -----------
Total assets ................................................ 174,894,990 163,039,670 135,042,415 10,580,561
------------ ------------ ------------ -----------
LIABILITIES
Payable upon return of securities loaned (Note 5) ............. 26,119,899 30,964,273 13,092,506 153,977
Payable for investments purchased ............................. 8,487,660 6,275,653 9,457,880 606,719
Payable for Fund shares redeemed .............................. 8,317 70,861 10,359 --
Payable on open futures transactions (Note 1) ................. 20,000 -- -- --
Accrued expenses and other liabilities ........................ 112,424 118,150 98,757 25,519
------------ ------------ ------------ -----------
Total liabilities ........................................... 34,748,300 37,428,937 22,659,502 786,215
------------ ------------ ------------ -----------
NET ASSETS
Capital stock, $0.001 par value ............................... 8,355 9,027 6,807 748
Paid-in capital ............................................... 121,624,338 118,677,962 102,755,736 9,129,196
Undistributed net investment income/(loss) .................... (310,480) (572,118) 92,116 21,648
Accumulated net realized gain/(loss) from
investments ................................................ 5,879,301 (2,358,080) 574,901 133,293
Net unrealized appreciation on investments and
futures transactions, if any ............................... 12,945,176 9,853,942 8,953,353 509,461
------------ ------------ ------------ -----------
Net assets applicable to shares outstanding ................. $140,146,690 $125,610,733 $112,382,913 $ 9,794,346
============ ============ ============ ===========
Shares outstanding ............................................... 8,355,068 9,027,390 6,806,919 747,691
------------ ------------ ------------ -----------
Net asset value, offering and redemption price per share ......... $16.77 $13.91 $16.51 $13.10
====== ====== ======= ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
MICRO CAP GROWTH GROWTH & VALUE LARGER CAP VALUE
FUND FUND FUND FUND*
------------ ------------- -------------- ----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends ...................................................... $ 123,985 $ 78,796 $ 385,804** $ 21,653
Interest ....................................................... 313,990 229,318 174,748 11,619
------------ ----------- ----------- ---------
437,975 308,114 560,552 33,272
------------ ----------- ----------- ---------
EXPENSES
Advisory fees .................................................. 530,419 456,374 288,337 8,712
Co-Administration fees ......................................... 123,764 106,487 67,631 17,315
Administrative Services Fees ................................... 106,084 91,275 57,667 1,742
Transfer agent fees and expenses ............................... 41,019 36,311 38,236 10,164
Custodian fees and expenses .................................... 38,834 37,593 30,085 8,046
Federal and state registration fees ............................ 9,498 8,560 13,011 7,974
Printing ....................................................... 6,868 5,970 3,105 1,969
Audit and legal fees ........................................... 4,508 4,175 2,446 346
Other .......................................................... 7,501 6,244 4,914 993
------------ ----------- ----------- ---------
Total expenses before waivers and
reimbursements ........................................... 868,495 752,989 505,432 57,261
Less: waivers and reimbursements ............................ (161,269) (144,490) (120,982) (45,637)
------------ ----------- ----------- ---------
Total expenses after waivers and
reimbursements ........................................... 707,226 608,499 384,450 11,624
------------ ----------- ----------- ---------
Net investment income/(loss) ................................... (269,251) (300,385) 176,102 21,648
------------ ----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FUTURES TRANSACTIONS
Net realized gain from investments ............................. 16,619,729 6,674,957 5,830,060 133,293
Net change in unrealized appreciation on:
Investments ................................................. (8,447,010) (5,415,634) 5,023,816 509,461
Futures transactions ........................................ 28,750 -- -- --
------------ ----------- ----------- ---------
Net realized and unrealized gain on investments and
futures transactions ........................................ 8,201,469 1,259,323 10,853,876 642,754
------------ ----------- ----------- ---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .............. $ 7,932,218 $ 958,938 $11,029,978 $ 664,402
============ =========== =========== =========
<FN>
- -----------
* Commenced operations on December 9, 1997.
** Net of foreign withholding taxes of $835.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MICRO CAP
FUND
----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED FISCAL
FEBRUARY 28, 1998 YEAR ENDED
(UNAUDITED) AUGUST 31, 1997
----------------- ---------------
<S> <C> <C>
Increase/(decrease) in net assets from operations
Net investment income/(loss) ..................................... $ (269,251) $ (31,353)
Net realized gain from investments ............................... 16,619,729 9,346,125
Net change in unrealized appreciation on investments and futures
transactions, if any .......................................... (8,418,260) 20,739,610
------------ ------------
Net increase in net assets resulting from operations ............. 7,932,218 30,054,382
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................................ -- (23,429)
Net realized capital gains ....................................... (19,435,152) --
------------ ------------
Total dividends and distributions to shareholders ................ (19,435,152) (23,429)
------------ ------------
INCREASE IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS ...... 9,530,125 97,988,446
------------ ------------
Total increase/(decrease) in net assets .......................... (1,972,809) 128,019,399
NET ASSETS
Beginning of period .............................................. 142,119,499 14,100,100
------------ ------------
End of period .................................................... $140,146,690 $142,119,499
============ ============
<FN>
- ----------------
* Commencement of operations.
(a) Includes undistributed net investment income of $92,116.
(b) Includes undistributed net investment income of $153,088.
(c) Includes undistributed net investment income of $21,648.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
<TABLE>
<CAPTION>
GROWTH
FUND
----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED FISCAL
FEBRUARY 28, 1998 YEAR ENDED
(UNAUDITED) AUGUST 31, 1997
----------------- ---------------
<S> <C> <C>
Increase/(decrease) in net assets from operations
Net investment income/(loss) .................................... $ (300,385) $ (257,096)
Net realized gain from investments .............................. 6,674,957 10,621,079
Net change in unrealized appreciation on investments and futures
transactions, if any ......................................... (5,415,634) 14,212,378
------------ ------------
Net increase in net assets resulting from operations ............ 958,938 24,576,361
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ........................................... -- (37,127)
Net realized capital gains ...................................... (19,099,345) --
------------ ------------
Total dividends and distributions to shareholders ............... (19,099,345) (37,127)
------------ ------------
INCREASE IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS ..... 26,027,242 66,428,932
------------ ------------
Total increase/(decrease) in net assets ......................... 7,886,835 90,968,166
NET ASSETS
Beginning of period ............................................. 117,723,898 26,755,732
------------ ------------
End of period ................................................... $125,610,733 $117,723,898
============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GROWTH & VALUE LARGER CAP VALUE
FUND FUND
--------------------------------- -----------------
FOR THE PERIOD
FOR THE SIX FOR THE DECEMBER 9, 1997*
MONTHS ENDED FISCAL THROUGH
FEBRUARY 28, 1998 YEAR ENDED FEBRUARY 28, 1998
(UNAUDITED) AUGUST 31, 1997 (UNAUDITED)
----------------- --------------- -----------------
<S> <C> <C> <C>
Increase/(decrease) in net assets from operations
Net investment income/(loss) .................................... $ 176,102 $ 192,219 $ 21,648
Net realized gain from investments .............................. 5,830,060 5,488,625 133,293
Net change in unrealized appreciation on investments and futures
transactions, if any ......................................... 5,023,816 3,920,436 509,461
------------ ----------- ----------
Net increase in net assets resulting from operations ............ 11,029,978 9,601,280 664,402
------------ ----------- ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ........................................... (237,074) (48,450) --
Net realized capital gains ...................................... (10,728,727) -- --
------------ ----------- ----------
Total dividends and distributions to shareholders ............... (10,965,801) (48,450) --
------------ ----------- ----------
INCREASE IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS ..... 59,827,916 39,124,840 9,129,944
------------ ----------- ----------
Total increase/(decrease) in net assets ......................... 59,892,093 48,677,670 9,794,346
NET ASSETS
Beginning of period ............................................. 52,490,820 3,813,150 --
------------ ----------- ----------
End of period ................................................... $112,382,913(a) $52,490,820(b) $9,794,346(c)
============ =========== ==========
</TABLE>
21
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for each share
outstanding, total investment return, ratios to average net assets and other
suppemental data for the respective periods. This information has been derived
from information provided in the financial statements.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MICRO CAP FUND
----------------------------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED FOR THE FISCAL JUNE 3, 1996*
FEBRUARY 28, 1998 YEAR ENDED THROUGH
(UNAUDITED) AUGUST 31, 1997 AUGUST 31, 1996
----------------- --------------- ----------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period .............................. $ 18.47 $ 11.67 $ 12.00
-------- -------- -------
Net investment income/(loss)(1) ................................... (0.03) (0.01) 0.01
Net realized and unrealized gain/(loss) on investments and
futures transactions, if any(2) ................................ 0.98 6.82 (0.34)
-------- -------- -------
Net increase/(decrease) in net assets resulting from operations ... 0.95 6.81 (0.33)
-------- -------- -------
Dividends and distributions to shareholders from:
Net investment income ............................................. -- (0.01) --
Net realized capital gains ........................................ (2.65) -- --
-------- -------- -------
Total dividends and distributions to shareholders ................. (2.65) (0.01) --
-------- -------- -------
Net asset value, end of period .................................... $ 16.77 $ 18.47 $ 11.67
======== ======== =======
Total investment return(3) ........................................ 6.16% 58.41% (2.75)%
======== ======== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ......................... $140,147 $142,119 $14,100
Ratio of expenses to average net assets(1)(4) ..................... 1.00%(5) 1.00% 1.00%(5)
Ratio of net investment income/(loss) to average net assets(1) .... (0.38)%(5) (0.06)% 0.73%(5)
Portfolio turnover rate ........................................... 196.32%(6) 233.49% 42.92%(6)
Average commission rate per share(7) .............................. $0.0323 $0.0327 $0.0339
</TABLE>
<TABLE>
<CAPTION>
GROWTH FUND
----------------------------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED FOR THE FISCAL JUNE 3, 1996*
FEBRUARY 28, 1998 YEAR ENDED THROUGH
(UNAUDITED) AUGUST 31, 1997 AUGUST 31, 1996
----------------- --------------- ---------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period .............................. $ 16.29 $ 11.84 $ 12.00
-------- -------- -------
Net investment income/(loss)(1) ................................... (0.03) (0.04) 0.01
Net realized and unrealized gain/(loss) on investments and
futures transactions, if any(2) ................................ 0.14 4.50 (0.17)
-------- -------- -------
Net increase/(decrease) in net assets resulting from operations ... 0.11 4.46 (0.16)
-------- -------- -------
Dividends and distributions to shareholders from:
Net investment income ............................................. -- (0.01) --
Net realized capital gains ........................................ (2.49) -- --
-------- -------- -------
Total dividends and distributions to shareholders ................. (2.49) (0.01) --
-------- -------- -------
Net asset value, end of period .................................... $ 13.91 $ 16.29 $ 11.84
======== ======== =======
Total investment return(3) ........................................ 1.25% 37.69% (1.33)%
======== ======== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ......................... $125,611 $117,724 $26,756
Ratio of expenses to average net assets(1)(4) ..................... 1.00%(5) 1.00% 1.00%(5)
Ratio of net investment income/(loss) to average net assets(1) .... (0.49)%(5) (0.38)% 0.71%(5)
Portfolio turnover rate ........................................... 139.21%(6) 266.25% 19.21%(6)
Average commission rate per share(7) .............................. $0.0395 $0.0397 $0.0365
</TABLE>
<TABLE>
<CAPTION>
GROWTH & VALUE FUND
----------------------------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED FOR THE FISCAL JUNE 3, 1996*
FEBRUARY 28, 1998 YEAR ENDED THROUGH
(UNAUDITED) AUGUST 31, 1997 AUGUST 31, 1996
----------------- --------------- ---------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period .............................. $ 17.16 $ 11.56 $12.00
-------- ------- ------
Net investment income/(loss)(1) ................................... 0.02 0.08 0.03
Net realized and unrealized gain/(loss) on investments and
futures transactions, if any(2) ................................ 2.00 5.58 (0.47)
-------- ------- ------
Net increase/(decrease) in net assets resulting from operations ... 2.02 5.66 (0.44)
-------- ------- ------
Dividends and distributions to shareholders from:
Net investment income ............................................. (0.06) (0.06) --
Net realized capital gains ........................................ (2.61) -- --
-------- ------- ------
Total dividends and distributions to shareholders ................. (2.67) (0.06) --
-------- ------- ------
Net asset value, end of period .................................... $ 16.51 $ 17.16 $11.56
======== ======= ======
Total investment return(3) ........................................ 13.01% 49.11% (3.67)%
======== ======= ======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ......................... $112,383 $52,491 $3,813
Ratio of expenses to average net assets(1)(4) ..................... 1.00%(5) 1.00% 1.00%(5)
Ratio of net investment income/(loss) to average net assets(1) .... 0.46%(5) 0.79% 1.89%(5)
Portfolio turnover rate ........................................... 176.86%(6) 263.83% 5.25%(6)
Average commission rate per share(7) .............................. $0.0331 $0.0369 $0.0363
</TABLE>
<TABLE>
<CAPTION>
LARGER CAP VALUE FUND
-------------------------
FOR THE PERIOD
DECEMBER 9, 1997*
THROUGH FEBRUARY 28, 1998
(UNAUDITED)
-------------------------
<S> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period .............................. $12.00
------
Net investment income/(loss)(1) ................................... 0.03
Net realized and unrealized gain/(loss) on investments and
futures transactions, if any(2) ................................ 1.07
------
Net increase/(decrease) in net assets resulting from operations ... 1.10
------
Dividends and distributions to shareholders from:
Net investment income ............................................. --
Net realized capital gains ........................................ --
------
Total dividends and distributions to shareholders ................. --
------
Net asset value, end of period .................................... $13.10
======
Total investment return(3) ........................................ 9.17%
======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ......................... $9,794
Ratio of expenses to average net assets(1)(4) ..................... 1.00%(5)
Ratio of net investment income/(loss) to average net assets(1) .... 1.86%(5)
Portfolio turnover rate ........................................... 48.41%(6)
Average commission rate per share(7) .............................. $0.0252
<FN>
- ----------------
* Commencement of operations.
** Calculated based on shares outstanding on the first and last day of the
respective periods, except for dividends and distributions, if any, which
are based on actual shares outstanding on the dates of distributions.
(1) Reflects waivers and reimbursements.
(2) The amounts shown for each share outstanding throughout the respective
periods are not in accord with the changes in the aggregate gains and losses
on investments during the respective periods because of the timing of sales
and repurchases of Fund shares in relation to fluctuating net asset value
during the respective periods.
(3) Total investment return is calculated assuming a purchase of shares on the
first day and a sale of shares on the last day of each period reported and
includes reinvestments of dividends and distributions, if any. Total
investment returns are not annualized.
(4) Without the waiver of advisory, administration and transfer agent fees and
without the reimbursement of certain operating expenses, the ratio of
expenses to average net assets annualized, for the periods ended February
28, 1998, August 31, 1997 and August 31, 1996, respectively, would have been
1.23%, 1.45% and 3.45% for the N/I NUMERIC INVESTORS Micro Cap Fund; 1.25%,
1.40%, and 2.62% for the N/I NUMERIC INVESTORS Growth Fund; 1.31%, 1.81% and
8.98% for the N/I NUMERIC INVESTORS Growth & Value Fund and 4.93% for the
N/I NUMERIC INVESTORS Larger Cap Value Fund for the period ended February
28, 1998.
(5) Annualized.
(6) Not annualized.
(7) Represents average commission rate per share charged to each Fund on
purchases and sales of investments subject to such commissions during each
period.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
22 & 23
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The RBB Fund, Inc. ("RBB") was incorporated under the laws of the State of
Maryland on February 29, 1988 and is registered under the Investment Company Act
of 1940, as amended, (the "Investment Company Act") as an open-end management
investment company. RBB is a "series fund", which is a mutual fund divided into
separate portfolios. Each portfolio is treated as a separate entity for certain
matters under the Investment Company Act, and for other purposes, and a
shareholder of one portfolio is not deemed to be a shareholder of any other
portfolio. Currently RBB has twenty-three investment portfolios, including the
N/I NUMERIC INVESTORS FAMILY OF FUNDS ("n/i numeric investors Family") which
consists of four diversified portfolios: N/I NUMERIC INVESTORS Micro Cap Fund
("Micro Cap Fund"), N/I NUMERIC INVESTORS Growth Fund ("Growth Fund"), N/I
NUMERIC INVESTORS Growth & Value Fund ("Growth & Value Fund") and N/I NUMERIC
INVESTORS Larger Cap Value Fund ("Larger Cap Value Fund") (each a "Fund",
collectively the "Funds").
RBB has authorized capital of thirty billion shares of common stock of which
14.03 billion are currently classified into eighty-three classes. Each class
represents an interest in one of twenty-three investment portfolios of RBB. The
classes have been grouped into fifteen separate "families", eight of which have
begun investment operations.
PORTFOLIO VALUATION -- The net asset value of each Fund is calculated as of the
close of regular trading on the NYSE on each business day. Each Fund's
securities are valued at the last reported sales price on the national
securities exchange or national securities market on which such shares are
primarily traded. If no sales are reported, as in the case of some securities
traded over-the-counter, portfolio securities are valued at the mean between the
last reported bid and asked prices. Securities for which market quotations are
not readily available are valued at fair market value as determined in good
faith by or under the direction of RBB's Board of Directors. With the approval
of RBB's Board of Directors, each Fund may use a pricing service, bank or
broker-dealer experienced in such matters to value its securities. The
preparation of financial statements requires the use of estimates by management.
Short-term obligations with maturities of 60 days or less are valued at
amortized cost which approximates market value. Expenses and fees, including
investment advisory and administration fees are accrued daily and taken into
account for the purpose of determining the net asset value of each Fund.
REPURCHASE AGREEMENTS -- Each Fund has agreed to purchase securities from
financial institutions subject to the seller's agreement to repurchase them at
an agreed-upon time and price ("repurchase agreements"). The financial
institutions with whom each Fund enters into repurchase agreements are banks and
broker/dealers which Numeric Investors L.P. (the Funds' "Adviser" or "Numeric")
considers creditworthy pursuant to criteria approved by RBB's Board of
Directors. The seller under a repurchase agreement will be required to maintain
the value of the securities as collateral, subject to the agreement at not less
than the repurchase price plus accrued interest. Numeric marks to market daily
the value of the collateral, and, if necessary, requires the seller to maintain
additional securities, to ensure that the value is not less than the repurchase
price. Default by or bankruptcy of the seller would, however, expose each Fund
to possible loss because of adverse market action or delays in connection with
the disposition of the underlying securities.
Investment Transactions and Investment Income -- Transactions are accounted for
on the trade date. The cost of investments sold is determined by use of the
specific identification method for both financial reporting and income tax
purposes in determining realized gains and losses on investments. Interest
income is recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date. Expenses not directly attributable to a specific Fund are
allocated based on relative net assets of each Fund.
24
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FINANCIAL FUTURES TRANSACTIONS -- Each Fund may invest in financial futures
contracts for hedging purposes, including conversion of cash to equity. When
entering into a futures contract, each Fund makes a deposit of an initial margin
with its custodian in a segregated account in the name of the futures broker.
Subsequent payments to or from the broker, called variation margin, are made on
a daily basis as the price of the underlying security or index fluctuates,
making the long and short positions in the futures contracts more or less
valuable. When the contracts are closed, a gain or loss is realized equal to the
difference between the proceeds from (or cost of) the closing transaction and
the Fund's basis in the contracts.
The risks related to the use of futures contracts include: (i) the correlation
between movements in the market price of a Fund's investments (held or intended
for purchase) being hedged and in the price of the futures contract may be
imperfect; (ii) possible lack of a liquid secondary market for closing out
futures positions; (iii) the need for additional portfolio mangement skills and
techniques; and (iv) losses due to unanticipated market movements. Successful
use of futures by the Funds is subject to Numeric's ability to correctly predict
movements in the direction of the market.
The risk of loss in trading futures contracts in some strategies can be
substantial, due both to the low margin deposits required, and the extremely
high degree of leverage involved in futures pricing. As a result, a relatively
small price movement in a futures contract may result in immediate and
substantial loss or gain to the investor. Thus, a purchase or sale of a futures
contract may result in losses or gains in excess of the amount invested in the
contract.
As of February 28, 1998, Micro Cap Fund held 20 Russell 2000 Growth Index
futures contracts expiring March 19, 1998. The value of such contracts on
February 28, 1998 was $4,625,000, resulting in an unrealized gain of $28,750.
The Micro Cap Fund has deposited $144,000 in a segregated account, as collateral
for the futures transactions. The cash collateral is included under the caption
CASH in the Statement of Assets and Liabilities.
The Funds had no other futures transactions for the periods ended February 28,
1998.
DIVIDENDS AND DISTRIBUTIONS -- Dividends from net investment income, if any,
will be declared and paid at least annually to shareholders. Distributions from
net realized capital gains, if any, will be distributed at least annually.
Income and capital gain distributions are determined in accordance with U.S.
federal income tax regulations which may differ from generally accepted
accounting principles.
U.S. FEDERAL TAX STATUS -- No provision is made for U.S. federal income taxes as
it is each Fund's intention to qualify for and elect the tax treatment
applicable to regulated investment companies under Subchapter M of the Internal
Revenue Code of 1986, as amended, and make the requisite distributions to its
shareholders which will be sufficient to relieve it from U.S. federal income and
substantially all excise taxes.
2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Numeric serves as each Fund's investment adviser. For its advisory services,
Numeric is entitled to receive 0.75% of each Fund's average daily net assets,
computed daily and payable monthly.
The Adviser has voluntarily agreed to limit each Fund's total operating expenses
for the current and the following fiscal year to the extent that such expenses
exceeded 1.00% of each Fund's average daily net assets. As necessary, this
limitation is effected in waivers of advisory fees and reimbursements of
expenses exceeding the advisory fee. For the six months ended
25
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
February 28, 1998 (unless otherwise indicated), investment advisory fees,
waivers and reimbursements of expenses were as follows:
GROSS NET EXPENSE
FUND ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT
- ---- ------------- ------- ------------- -------------
Micro Cap Fund ........... $530,419 $(69,330) $461,089 --
Growth Fund .............. 456,374 (56,385) 399,989 --
Growth & Value Fund ...... 288,337 (62,830) 225,507 --
Larger Cap Value Fund* ... 8,712 (8,712) -- $(23,435)
- -----------
*Commenced operations on December 9, 1997.
The Funds will not pay Numeric at a later time for any amounts it may waive or
any amounts which Numeric has assumed.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank, National
Association, and Bear Stearns Funds Management Inc. ("BSFM"), a wholly-owned
subsidiary of The Bear Stearns Companies Inc., serve as co-administrators for
each Fund. For providing administrative services PFPC is entitled to receive a
monthly fee equal to an annual rate of 0.125% of each Fund's average daily net
assets, subject to a minimum monthly fee of $6,250 per Fund. BSFM is entitled to
receive a monthly fee equal to an annual rate of 0.05% on the first $150 million
and 0.02% of each Fund's average daily net assets thereafter.
For the six months ended February 28, 1998 (unless otherwise indicated), PFPC,
at its discretion, voluntarily agreed to waive a portion of its
co-administration fees for each Fund. During such period, PFPC's
co-administration fees and related waivers were as follows:
PFPC GROSS PFPC NET PFPC
FUND CO-ADMINISTRATION FEES WAIVERS CO-ADMINISTRATION FEES
- ---- ---------------------- ------- ----------------------
Micro Cap Fund ......... $88,403 $(7,072) $81,331
Growth Fund ............ 76,062 (6,085) 69,977
Growth & Value Fund .... 48,408 (4,196) 44,212
Larger Cap Value Fund* . 16,734 (8,367) 8,367
- -----------
* COMMENCED OPERATIONS ON DECEMBER 9, 1997.
In addition, PFPC serves as each Fund's transfer and dividend disbursing agent.
PFPC, at its discretion, voluntarily agreed to waive a portion of its transfer
agency fees for each Fund. For the six months ended February 28, 1998 (unless
otherwise indicated), transfer agency fees and waivers were as follows:
GROSS NET
TRANSFER AGENCY TRANSFER AGENCY
FUND FEES WAIVERS FEES
- ---- --------------- ------- ---------------
Micro Cap Fund ........... $41,019 -- $41,019
Growth Fund .............. 36,311 $(9,000) 27,311
Growth & Value Fund ...... 38,236 (7,822) 30,414
Larger Cap Value Fund* ... 10,164 (3,729) 6,435
- -----------
* Commenced operations on December 9, 1997.
26
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Counsellors Funds Services, Inc. ("Counsellors"), a wholly-owned subsidiary of
Warburg, Pincus Counsellors, Inc., provides certain administrative services to
each Fund. As compensation for such administrative services, Counsellors is
entitled to receive a monthly fee equal to an annual rate of 0.15% of each
Fund's average daily net assets.
For the six months ended February 28, 1998 (unless otherwise indicated),
Counsellors has, at its discretion, voluntarily agreed to waive a portion of its
administrative services fees for each Fund. During such period, administrative
services fees and waivers were as follows:
GROSS
ADMINISTRATIVE NET ADMINISTRATIVE
FUND SERVICES FEES WAIVERS SERVICES FEES
- ---- -------------- ------- ------------------
Micro Cap Fund .............. $106,084 $(84,867) $21,217
Growth Fund ................. 91,275 (73,020) 18,255
Growth & Value Fund ......... 57,667 (46,134) 11,533
Larger Cap Value Fund* ...... 1,742 (1,394) 348
- -----------
* Commenced operations on December 9, 1997.
These fees are computed daily and paid monthly.
3. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the costs of securities owned at February
28, 1998 were $132,824,067, $117,645,452, $107,823,324 and $9,542,535 for Micro
Cap Fund, Growth Fund, Growth & Value Fund and Larger Cap Value Fund,
respectively. Accordingly, the net unrealized appreciation/(depreciation) on
investments were as follows:
FUND APPRECIATION DEPRECIATION NET APPRECIATION
- ---- ------------ ------------ ----------------
Micro Cap Fund .............. $14,813,271 $(2,244,047) $12,569,224
Growth Fund ................. 12,557,577 (3,008,830) 9,548,747
Growth & Value Fund ......... 9,592,759 (966,830) 8,625,929
Larger Cap Value Fund ....... 556,448 (55,038) 501,410
For the six months ended February 28, 1998 (unless otherwise indicated),
aggregate purchases and sales of investment securities (excluding short-term
investments) were as follows:
FUND PURCHASES SALES
- ---- ------------ ------------
Micro Cap Fund .................................. $258,007,809 $265,895,920
Growth Fund ..................................... 194,620,911 188,139,131
Growth & Value Fund ............................. 178,407,790 131,809,662
Larger Cap Value Fund* .......................... 11,333,809 2,588,682
- -----------
* Commenced operations on December 9, 1997.
27
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS
As of February 28, 1998 each Fund has 50,000,000 shares of $0.001 par value
common stock authorized.
Transactions in capital shares for the respective periods were as follows:
MICRO CAP FUND
------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FISCAL YEAR ENDED
FEBRUARY 28, 1998 AUGUST 31, 1997
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
Sales ................... 1,045,127 $ 19,903,873 7,698,447 $116,335,001
Repurchases ............. (1,587,227) (29,186,342) (1,214,056) (18,368,326)
Reinvestments ........... 1,202,851 18,812,594 1,561 21,771
---------- ------------ --------- ------------
Net increase ............ 660,751 $ 9,530,125 6,485,952 $ 97,988,446
========== ============ ========= ============
GROWTH FUND
------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FISCAL YEAR ENDED
FEBRUARY 28, 1998 AUGUST 31, 1997
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
Sales ................... 1,024,557 $15,971,969 6,432,891 $ 85,903,977
Repurchases ............. (616,656) (8,635,414) (1,468,234) (19,510,716)
Reinvestments ........... 1,392,749 18,690,687 2,669 35,671
--------- ----------- --------- ------------
Net increase ............ 1,800,650 $26,027,242 4,967,326 $ 66,428,932
========= =========== ========= ============
GROWTH & VALUE FUND
------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FISCAL YEAR ENDED
FEBRUARY 28, 1998 AUGUST 31, 1997
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
Sales ................... 3,685,870 $ 59,586,605 3,065,874 $44,012,804
Repurchases ............. (623,812) (10,241,723) (339,841) (4,933,777)
Reinvestments ........... 685,614 10,483,034 3,427 45,813
---------- ------------ --------- -----------
Net increase ............ 3,747,672 $ 59,827,916 2,729,460 $39,124,840
========= ============ ========= ===========
28
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
LARGER CAP VALUE FUND
---------------------------
FOR THE PERIOD
DECEMBER 9, 1997* THROUGH
FEBRUARY 28, 1998
---------------------------
SHARES AMOUNT
---------------------------
Sales ............................................ 757,446 $9,248,011
Repurchases ...................................... (9,755) (118,067)
------- ----------
Net increase ..................................... 747,691 $9,129,944
======= ==========
- -----------
* Commencement of operations.
5. SECURITIES LENDING
Loans of securities are required at all times to be secured by collateral equal
to at least 102% of the market value of the securities on loan. However, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings. In the
event that the borrower fails to return securities, and cash collateral being
maintained by the borrower is insufficient to cover the value of loaned
securities and provided such collateral insufficiency is not the result of
investment losses, the lending agent has agreed to pay the amount of the
shortfall to the Funds. The market value of securities on loan to brokers and
the related value of cash collateral and indemnification received at February
28, 1998, were as follows:
VALUE OF SECURITIES VALUE OF COLLATERAL
FUND ON LOAN AND INDEMNIFICATION
- ---- ------------------- -------------------
Micro Cap Fund ...................... $25,391,877 $26,119,899
Growth Fund ......................... 29,795,845 30,964,273
Growth & Value Fund ................. 12,771,550 13,092,506
Larger Cap Value Fund ............... 149,351 153,977
The cash collateral was reinvested in repurchase agreements which was in turn
collateralized by various U.S. Government Agency Mortgage Backed Obligations.
For the six months ended February 28, 1998, income from securities lending was
$33,887, $38,705 and $11,421 for Micro Cap Fund, Growth Fund and Growth & Value
Fund, respectively. For the period December 10, 1997 (commencement of investment
operations) through February 28, 1998, income from securities lending was $102
for Larger Cap Value Fund. Such income from securities lending is included under
the caption INTEREST in the Statement of Operations.
29
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
6. COLLATERAL FOR REPURCHASE AGREEMENTS
Listed below is the collateral associated with the repurchase agreements with
Bear, Stearns & Co. Inc., outstanding at February 28, 1998:
<TABLE>
<CAPTION>
MICRO CAP FUND
---------------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATES MARKET VALUE INTEREST VALUE
- ------ --------- ----------------- -------------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Federal Home Loan Mortgage Corporation* ....... 89,291 08/15/13-12/15/22 -- $ 5,382,326 $153,107 $ 5,535,433
Federal Home Loan Mortgage Corporation** ...... 4,195 04/15/23 8.737% 638,395 2,053 640,448
Federal National Mortgage Association* ........ 7,620 06/25/23 -- 355,174 12,805 367,979
Federal National Mortgage Association** ....... 20,369 05/25/23 3.800% 271,632 2,699 274,331
Federal National Mortgage Association
Real Estate Mortgage Investment Corp.* ..... 30,523 4/25/23 -- 1,185,604 11,757 1,197,361
Federal National Mortgage Association
Real Estate Mortgage Investment Corp.** .... 9,669 05/25/08-05/25/23 8.500%-11.147% 4,384,665 14,490 4,399,155
----------- -------- -----------
Total ......................................... $12,217,796 $196,911 $12,414,707
=========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
GROWTH FUND
---------------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATES MARKET VALUE INTEREST VALUE
- ------ --------- ----------------- -------------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Federal Home Loan Mortgage Corporation* ........ 55,801 11/15/21-07/15/23 -- $6,456,494 $130,324 $6,586,818
Federal National Mortgage Association* ......... 78,915 08/25/98 -- 161,542 3,078 164,620
Federal National Mortgage Association
Real Estate Mortgage Investment Corp.* ...... 13,534 11/25/16-07/25/23 -- 166,264 1,803 168,067
---------- -------- ----------
Total .......................................... $6,784,300 $135,205 $6,919,505
========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
GROWTH & VALUE FUND
---------------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATES MARKET VALUE INTEREST VALUE
- ------ --------- ----------------- -------------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Federal Home Loan Mortgage Corporation* ........ 4,639 09/15/23 -- $ 59,305 $ 4,190 $ 63,495
Federal Home Loan Mortgage Corporation** ....... 938 10/15/08 7.674% 600,409 3,584 603,993
Federal National Mortgage Association Real
Estate Mortgage Investment Corp.* ........... 178,359 11/25/13-06/25/23 -- 6,183,464 250,190 6,433,654
Federal National Mortgage Association Real
Estate Mortgage Investment Corp.** .......... 1,195 09/25/23 12.500% 1,405,977 1,245 1,407,222
---------- -------- ----------
Total .......................................... $8,249,155 $259,209 $8,508,364
========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
LARGER CAP VALUE FUND
---------------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST VALUE
- ------ --------- ----------------- ------------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Federal National Mortgage Association** ....... 695 12/25/08 6.113% $667,250 $3,144 $670,394
======== ====== ========
<FN>
- -----------
* Interest only zero coupon bond.
** Inverse floater.
</FN>
</TABLE>
30
<PAGE>
N/I NUMERIC INVESTORS (LOGO)
FAMILY OF FUNDS
[GRAPHIC OMITTED]
One Memorial Drive
Cambridge, MA 02142
1-800-numeric [686-3742]
http://www.numeric.com
INVESTMENT ADVISER
Numeric Investors L.P.(REGISTRATION MARK)
One Memorial Drive
Cambridge, MA 02142
CO-ADMINISTRATORS
Bear Stearns Funds Management Inc.
245 Park Avenue
New York, NY 10167
PFPC Inc.
Bellevue Corporate Center
400 Bellevue Parkway
Wilmington, DE 19809
DISTRIBUTOR
Counsellors Funds Services,Inc.
466 Lexington Avenue
New York, NY 10017
CUSTODIAN
Custodial Trust Company
101 Carnegie Center
Princeton, NJ 05840
TRANSFER AGENT
PFPC Inc.
Bellevue Corporate Center
400 Bellevue Parkway
Wilmington, DE 19809
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, PA 19103
COUNSEL
Drinker Biddle & Reath LLP
1345 Chestnut Street
Philadelphia, PA 19107
The financial information included herein is taken from the records of each Fund
without examination by independent auditors who do not express an opinion
thereon.
This report is submitted for the general information of the shareholders of each
Fund.It is not authorized for the distribution to prospective investors in each
Fund unless it is preceded or accompanied by a current prospectus which includes
details regarding each Fund's objectives, policies and other information. Total
investment return is based on historical results and is not intended to indicate
future performance. The investment return and principal value of an investment
in each Fund will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than original cost.
