N/I NUMERIC INVESTORS
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
N/I NUMERIC INVESTORS
Small Cap Value Fund
Semi-Annual Report
February 28, 1999
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
ADVISER'S REPORT
March 12, 1999
Dear Fellow Shareholder:
We are pleased to report the semi-annual results for the N/I NUMERIC INVESTORS
FAMILY OF FUNDS for the period ending February 28, 1999 (the funds' fiscal year
ends on August 31). I hope that you are now aware that John Bogle, Jr. is no
longer with Numeric Investors L.P.(R) As John did so ably in the past, I will do
my utmost to keep you fully informed on developments related to our funds, and
how they are faring relative to their peers.
MARKET AND ECONOMIC COMMENTARY
Since our last report (September 1998), the highly unusual market environment of
the last eighteen months has continued. 1998 was the narrowest, most quality-
and liquidity-sensitive market since World War II. In addition, there has been a
huge run-up in Internet-related stocks which has given headaches to professional
investors even as it has enriched (at least so far) individual investors who
trade these stocks without consideration of valuation levels.
The excellent returns of the popular but top-heavy large-cap indices have masked
the much weaker performance of smaller and midcap stocks. The chart below shows
that 1998 returns strongly and uniformly favored larger companies, and that this
pattern has continued through the first two months of 1999 as well.
A VERY NARROW MARKET IN 1998 & AGAIN IN EARLY 1999
CAPITALIZATION WEIGHTED AVERAGE RETURNS OF EACH CAPITALIZATION STRATUM
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
"1998" "Jan & Feb"
larger 50 40% 1.3%
larger 150 24% 2.6%
mid-large 300 13% -3.4%
mid cap 500 2% -5.9%
smaller 2000 .003% -8.1%
1
<PAGE>
Some of the superior performance of the largest stocks is due to their superior
profitability and greater ability to grow earnings. However valuation spreads
between these largest companies and the rest of the market have now widened to
such an extent that these large companies must continue to grow much faster than
the broad economy to justify their high relative valuations. The key decision
for investors today is to decide if the higher valuations of these largest
companies are justified because these companies will continue to be
super-competitive in the years ahead, or if too much optimism is built into
their prices.
For the market as a whole, earnings expectations have been reduced since the
onset of the East Asian market crisis during the fall of 1997, with smaller
companies experiencing greater reductions in expectations than larger companies.
With more earnings disappointments, it is appropriate that smaller stocks have
underperformed larger stocks, on average. Furthermore, the profitability of
larger companies (measured as return on equity) has been consistently higher
than smaller companies, thus justifying prices at higher multiples of earnings
or book value. Better earnings growth and higher multiples have contributed to
much of the superior performance of larger stocks over smaller.
However, the recent concentration of strongest returns in the largest stocks
appears to have been excessive. Mike Goldstein, Chief Investment Strategist at
the brokerage firm of Sanford Bernstein, calculates that the largest 50 stocks
sell at a price/earnings (p/e) multiple that is 140% of the p/e multiple of the
next 1450 stocks. This premium has averaged about 108% over the prior 32 years
and has never been higher except at the peak of the Nifty-Fifty fad of the early
1970's. Prior to the onset of the East Asian market crises just eighteen months
ago, the largest 50 stocks had no multiple premium compared to the rest of the
market.
Some of the run-up in large stock valuations has been caused by investors
flocking to safety and liquidity. The price for safety took a steep jump upward
last summer when the market sold off in response to the Russian debt repudiation
and the meltdown of a well-publicized hedge fund. The wide spread in yields in
the bond markets, between debt instruments with the highest safety and others
judged to be more risky, has not contracted since last summer. The equity
markets reflect a similar concern, insofar as the largest, most liquid, highest
quality companies now sell at historically high premiums compared to smaller,
less liquid companies.
The impact on investors of this flight to quality/liquidity is three-fold.
First, in a flight to quality, any effort at finding undervalued stocks is
unlikely to be rewarded, because investors are not adjusting prices to properly
reflect the return opportunities of the least risky and somewhat more risky
investments. Rather, investors sell all but the least risky investments and
reinvest in the safest, regardless of price. This causes our stock selection
models to fall short, because we assume that investors rationally compare risk
and return. This assumption breaks down when safety is the only consideration,
and our models have performed poorly in recent months.
The second impact of a flight to quality is that it confuses investors. The
superior performance of the largest companies exaggerates the actual return
opportunities of the broad market. In the chart on the page 1, note that the
average return for the smaller 2500 companies of the 3000 companies in the
Russell 3000 Index has been negative over the fourteen months ending February
1999. Do investors understand that mid-cap and small-cap stocks have been in a
"bear" market? Investors who compare the return of their fund with the
well-followed, large-cap indices such as the Dow Jones Industrials or the S&P
500 Index may conclude that they have been poorly served by their fund. In fact,
several of our funds do not invest in these larger stocks, by design. Comparing
our funds' returns with the returns of their proper benchmarks is essential to
determine if we added value versus each fund's opportunity set.
2
<PAGE>
The third impact of the flight to quality is that the investor may give up and
invest in index funds at precisely the wrong time. After five straight years of
superior performance of larger cap stocks, the investor might conclude that
indexing is superior to active management because most active managers (who tend
to be underweighted in the largest stocks) have underperformed. However, history
suggests that periods of superior large cap performance have been followed by
periods of better performance by smaller cap stocks, thus allowing a greater
proportion of active managers to outperform their cap-weighted benchmarks. The
investor who jumps to indexing now may wish he/she had maintained smaller stock
exposure five years from now. Of course, past performance is no guarantee of
future results.
Recently, we have seen a divergence between the small cap focus of our Micro Cap
Fund and the Fund's benchmark, the Russell 2000 Growth Index. The Index is
reformulated each June, and this year many stocks, including a number of
Internet stocks, migrated beyond the capitalization guidelines we use to manage
the Micro Cap Fund. The investment guidelines for the Micro Cap Fund place the
primary emphasis on stocks with market capitalizations less than $1 billion, to
preserve the microcap flavor of the fund. Today, about 35% of the capitalization
of the Russell 2000 Growth Index has migrated above this level and thus is
largely beyond the micro cap focus of the Fund. To the extent that the market
continues to favor some of these larger capitalization stocks, the benchmark
will participate in, and benefit more from, those stocks that have exceeded our
capitalization guidelines. For the last several months, we have seen these
"untouchable" stocks lift the benchmark return and cause the Micro Cap Fund to
lose some of the ground it had gained on the benchmark in the earlier months of
the reporting period.
PORTFOLIO RETURNS
The six-month return through February 28, 1999 of the N/I MICRO CAP portfolio
was 31.94%, compared to its benchmark, the Russell 2000 Growth Index, an
unmanaged index of smaller capitalization growth stocks, which returned 29.29%.
As of December 31, 1998, the one-year and average annual return since inception,
of the N/I MICRO CAP Fund was 16.27% and 24.95%, respectively, and of the
benchmark was 1.23% and 2.38%.
The six-month return through February 28, 1999 of the N/I GROWTH portfolio was
24.88%, compared to its benchmark, the Russell 2500 Growth Index, an unmanaged
index of smaller and medium capitalization growth stocks, which returned 28.91%.
As of December 31, 1998, the one-year and average annual return since inception,
of the N/I GROWTH Fund was 2.22% and 10.85%, respectively, and of the benchmark
was 3.09% and 5.56%.
The six-month return through February 28, 1999 of the N/I GROWTH & VALUE
portfolio was 23.34%, compared to its benchmark, the S&P MidCap 400 Index, an
unmanaged index of medium capitalization growth stocks, which returned 27.65%.
As of December 31, 1998, the one-year and average annual return since inception,
of the N/I GROWTH & VALUE Fund was 13.88% and 22.48%, respectively, and of the
benchmark was 19.11% and 22.62%.
The six-month return through February 28, 1999 of the N/I LARGER CAP VALUE
portfolio was 18.42%, compared to its benchmark, the Russell 1000 Value Index,
an unmanaged index of larger capitalization stocks with value characteristics,
which returned 22.53%. As of December 31, 1998 the one-year and average annual
return since inception, of the N/I LARGER CAP VALUE Fund was 10.78% and 10.75%,
respectively, and of the benchmark was 15.63% and 14.85%.
The cumulative three-month return through February 28, 1999 of the N/I SMALL CAP
VALUE portfolio since it opened on November 30, 1998 was -6.17%, compared to its
benchmark, the Russell 2000 Value Index, an unmanaged index of smaller
capitalization stocks with value characteristics, which returned -6.08%.
3
<PAGE>
PERFORMANCE ATTRIBUTION
As discussed above, the market of the last eighteen months has been unusually
narrow and quality-sensitive even while there has been a dramatic run-up in
Internet-related stocks. Such highly unusual market environments are never
hospitable to a quantitative process like ours, since a `quant' process is
designed to add value in `normal' market environments which occur most of the
time. History suggests, however, that widely mispriced and volatile markets give
way to much more ordered and profitable markets eventually. Our models have
indeed struggled over the recent past, and the performance comparison with our
benchmarks has appeared even gloomier because of capitalization biases within
the benchmarks. We look forward to a return to more normal markets.
Thank you for your continued confidence in our strategy in this especially
perverse market environment. We continue to place considerable staff resources
on research efforts, particularly in our Estrend(TRADE MARK) model, which we are
hopeful, will result in further improvements in the months ahead. We believe
that our ongoing research efforts combined with a market return to normalcy
should assist us in the coming months.
In closing, I want to reassure you of our continued commitment to do what is
right for our shareholders. This includes keeping expenses below industry
averages, closing funds at low total asset levels thereby allowing us to move
expeditiously in getting trades done, and increasing our use of the Internet for
your benefit. Thank you again for your support, and please feel free to contact
us with questions or comments.
Sincerely,
/S/LANGDON B. WHEELER
Langdon B. Wheeler, CFA
President
Numeric Investors L.P.(R)
4
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS--91.5%
ADVERTISING--0.3%
5,500 TMP Worldwide Inc.*/** ................................ $ 309,375
-----------
AEROSPACE--0.2%
10,900 Kellstrom Industries, Inc.*/** ........................ 176,444
-----------
AIR TRANSPORT--0.6%
23,700 Eagle USA Airfreight, Inc.*/** ........................ 684,337
-----------
AMUSEMENT & RECREATIONAL SERVICES--0.1%
4,100 Polaris Industries Inc. ............................... 115,825
-----------
APPAREL--0.4%
11,700 Tarrant Apparel Group*/** ............................. 451,912
-----------
AUTOMOBILE PARTS & EQUIPMENT--0.3%
10,800 CSK Auto Corp.* ....................................... 370,575
-----------
AUTOMOBILE RENTALS--0.4%
19,300 Avis Rent A Car, Inc.* ................................ 442,694
-----------
AUTOMOBILE SALES & SERVICING--0.8%
15,800 Group 1 Automotive, Inc.*/** .......................... 397,962
30,700 Sonic Automotive, Inc.*/** ............................ 495,037
-----------
892,999
-----------
BANKS--1.0%
28,900 Flagstar Bancorp, Inc.** .............................. 809,200
20,100 Republic Bancorp, Inc. ................................ 276,375
-----------
1,085,575
-----------
BEVERAGES--0.1%
2,200 Canandaigua Brands, Inc., Class A ..................... 117,425
-----------
CHEMICALS--0.7%
19,500 Dionex Corp.* ......................................... 719,062
-----------
CHEMICALS - SPECIALTY--1.0%
4,300 Cytec Industries Inc.* ................................ 115,294
15,900 MacDermid, Inc.** ..................................... 596,250
14,300 Spartech Corp.** ...................................... 337,837
-----------
1,049,381
-----------
COMMERCIAL PRINTING--0.5%
3,900 Consolidated Graphics, Inc.* .......................... 236,925
38,300 Workflow Management, Inc.* ............................ 270,494
-----------
507,419
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES--5.1%
26,800 ADVO, Inc.* ........................................... $ 536,000
23,800 Analytical Surveys, Inc.*/** .......................... 618,800
3,400 Bell & Howell Co.* .................................... 112,625
82,800 Health Management Systems, Inc.* ...................... 439,875
45,200 Hussmann International, Inc.** ........................ 638,450
4,200 Lason Inc.* ........................................... 227,587
21,900 Plexus Corp.* ......................................... 715,856
12,800 Pre-Paid Legal Services, Inc.* ........................ 368,000
17,400 Quanta Services, Inc.*/** ............................. 469,800
39,900 RCM Technologies, Inc.* ............................... 738,150
31,900 Seitel, Inc.* ......................................... 305,044
52,300 TeleSpectrum Worldwide, Inc.*/** ...................... 434,744
-----------
5,604,931
-----------
COMPUTER COMPONENTS--3.6%
25,800 Apex PC Solutions, Inc.*/** ........................... 632,100
56,300 Computer Network Technology Corp.* .................... 668,562
10,500 Cybex Computer Products Corp.* ........................ 271,687
21,700 Hutchinson Technology, Inc.*/** ....................... 675,412
63,000 InterVoice, Inc.* ..................................... 685,125
6,300 MicroTouch Systems, Inc.* ............................. 110,644
26,100 Xircom, Inc.* ......................................... 887,400
-----------
3,930,930
-----------
COMPUTERS, SOFTWARE & SERVICING--11.6%
17,000 Aspect Development, Inc.* ............................. 518,500
4,500 Avid Technology, Inc.* ................................ 131,906
36,600 Best Software, Inc.* .................................. 594,750
20,500 Clarify, Inc.* ........................................ 556,062
3,400 Cognizant Technology Solutions Corp.*/** .............. 146,200
14,500 Concord Communications, Inc.*/** ...................... 821,062
21,400 DSET Corp.*/** ........................................ 256,800
8,000 FactSet Research Systems, Inc. ........................ 333,500
35,200 Genesys Telecommunications Laboratories, Inc* ......... 594,000
5,500 Great Plains Software, Inc.*/** ....................... 231,000
11,000 IMRglobal Corp.* ...................................... 199,375
15,500 Jack Henry & Associates, Inc. ......................... 558,000
5,600 Kronos, Inc.* ......................................... 236,950
15,000 Macrovision Corp.*/** ................................. 517,500
12,600 Maxwell Technologies, Inc.* ........................... 323,662
26,600 Metro Information Services, Inc.*/** .................. 591,850
1,500 Network Solutions, Inc., Class A* ..................... 272,250
400 pcOrder.com, Inc.* .................................... 18,850
10,500 Peregrine Systems, Inc.* .............................. 269,062
15,100 Pervasive Software, Inc.* ............................. 269,912
26,000 Pinnacle Systems, Inc.*/** ............................ 931,125
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMPUTERS, SOFTWARE & SERVICING--(CONTINUED)
29,700 Pomeroy Computer Resources, Inc.* ..................... $ 671,962
5,400 QRS Corp.* ............................................ 268,987
19,400 Software AG Systems, Inc.* ............................ 217,037
5,800 Software Spectrum, Inc.* .............................. 71,775
35,000 THQ, Inc.* ............................................ 695,625
51,133 Timberline Software Corp. ............................. 760,603
2,300 TSI International Software Ltd.* ...................... 115,431
39,400 Unigraphics Solutions, Inc.* .......................... 667,337
14,600 Verity, Inc.* ......................................... 563,925
22,100 Zomax Optical Media, Inc.* ............................ 287,991
-----------
12,692,989
-----------
CORRECTIONAL REHABILITATION--0.4%
26,500 Cornell Corrections, Inc.* ............................ 437,250
-----------
ELECTRICAL EQUIPMENT--0.0%
2,500 GenRad, Inc.*/** ...................................... 42,812
-----------
ELECTRONIC COMPONENTS--3.9%
48,300 Aeroflex, Inc.* ....................................... 649,031
18,500 Applied Micro Circuits Corp.*/** ...................... 726,125
2,200 Cree Research, Inc.* .................................. 71,913
5,000 CTS Corp. ............................................. 244,688
17,400 Moog, Inc., Class A* .................................. 554,625
22,100 Park Electrochemical Corp. ............................ 599,463
27,500 Sawtek, Inc.*/** ...................................... 611,875
22,300 TranSwitch Corp.*/** .................................. 774,925
-----------
4,232,645
-----------
ELECTRONIC COMPONENTS & ACCESSORIES --3.8%
22,350 Alpha Industries, Inc.* ............................... 455,381
5,200 Broadcom Corp, Class A.* .............................. 312,975
59,400 Cable Design Technologies Corp.* ...................... 768,487
12,500 DII Group, Inc. (The)* ................................ 292,188
17,900 NeoMagic Corp.*/** .................................... 194,662
3,700 Optical Coating Laboratory, Inc. ...................... 118,400
63,100 Pioneer-Standard Electronics, Inc.** .................. 489,025
25,000 Power Intergrations, Inc.* ............................ 603,125
6,400 QLogic Corp.* ......................................... 372,000
29,100 Stoneridge, Inc.* ..................................... 492,881
2,600 Veeco Instruments, Inc.* .............................. 99,450
-----------
4,198,574
-----------
ELECTRONICS - INSTRUMENTAL--0.8%
35,700 Anaren Microwave, Inc.* ............................... 859,031
-----------
FINANCIAL SERVICES--2.1%
20,900 Doral Financial Corp. ................................. 395,794
6,600 Metris Companies, Inc. ................................ 283,800
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--(CONTINUED)
17,000 NCO Group, Inc.*/** ................................... $ 531,250
52,700 UniCapital Corp.* ..................................... 306,319
39,100 Waddell & Reed Financial, Inc., Class A ............... 738,013
-----------
2,255,176
-----------
FLORAL PRODUCTS--0.5%
35,600 U.S.A. Floral Products, Inc.* ......................... 498,400
-----------
FOOD & AGRICULTURE--1.0%
7,100 Michael Foods, Inc. ................................... 131,350
4,900 Performance Food Group Co.* ........................... 127,400
36,600 Pilgrim's Pride Corp., Class B ........................ 697,688
5,800 Ralcorp Holdings, Inc.* ............................... 103,313
-----------
1,059,751
-----------
FOOTWEAR--0.3%
8,000 K-Swiss, Inc., Class A ................................ 387,750
-----------
HEALTHCARE--0.8%
13,900 CareMatrix Corp.*/** .................................. 305,800
34,500 RehabCare Group, Inc.* ................................ 558,469
-----------
864,269
-----------
INDUSTRIAL MACHINERY--1.9%
29,100 Astec Industries, Inc.* ............................... 800,250
14,100 JLG Industries, Inc. .................................. 198,281
42,400 Terex Corp.*/** ....................................... 1,086,500
-----------
2,085,031
-----------
INSURANCE--2.3%
45,600 ARM Financial Group, Inc., Class A** .................. 709,650
38,600 Automobile Protection Corp.* .......................... 414,950
4,300 CMAC Investment Corp.** ............................... 177,644
13,900 Delphi Financial Group, Inc., Class A* ................ 666,331
6,800 E. W. Blanch Holdings, Inc. ........................... 377,400
6,400 Triad Guaranty, Inc.* ................................. 118,400
-----------
2,464,375
-----------
INSURANCE - LIFE--0.2%
14,500 American Medical Security Group, Inc. ................. 210,250
-----------
INSURANCE - PROPERTY & CASUALTY--1.6%
24,200 Chartwell Re Corp. .................................... 523,325
10,600 FPIC Insurance Group, Inc.* ........................... 459,775
21,600 LandAmerica Financial Group, Inc.** ................... 776,250
-----------
1,759,350
-----------
INSURANCE - TITLE INSURANCE--0.7%
36,320 Fidelity National Financial, Inc. ..................... 726,400
-----------
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--1.7%
96,700 Acclaim Entertainment, Inc.*/** ....................... $ 755,469
11,100 Activision, Inc.*/** .................................. 120,713
30,400 Racing Champions Corp.* ............................... 387,600
71,600 WMS Industries, Inc.* ................................. 563,850
-----------
1,827,632
-----------
MACHINERY--0.8%
16,700 Manitowoc Co., Inc. (The) ............................. 615,813
12,200 United Dominion Industries Ltd.** ..................... 235,613
-----------
851,426
-----------
MANUFACTURING--0.9%
30,000 MotivePower Industries, Inc.* ......................... 826,875
5,400 Tredegar Industries, Inc. ............................. 138,038
-----------
964,913
-----------
MEDICAL INSTRUMENTS & SUPPLIES--3.6%
15,800 Empi, Inc.* ........................................... 383,150
17,900 ICU Medical, Inc.* .................................... 375,900
13,800 Maxxim Medical, Inc.* ................................. 313,950
39,200 Ocular Sciences, Inc.* ................................ 960,400
27,000 OEC Medical Systems, Inc.* ............................ 673,313
13,700 Perclose, Inc.* ....................................... 578,825
22,200 ResMed, Inc.*/** ...................................... 688,200
-----------
3,973,738
-----------
MEDICAL & MEDICAL SERVICES--2.5%
16,000 Fuisz Technologies Ltd.*/** ........................... 116,000
23,000 Hanger Orthopedic Group, Inc.* ........................ 349,313
33,800 Hooper Holmes, Inc. ................................... 507,000
23,100 InfoCure Corp.*/** .................................... 628,031
17,900 Osteotech, Inc.* ...................................... 968,838
14,800 Veterinary Centers of America, Inc.* .................. 222,000
-----------
2,791,182
-----------
METAL FABRICATING--0.6%
33,800 Amcast Industrial Corp. ............................... 640,088
-----------
MOTOR HOMES--0.5%
25,600 National R.V. Holdings, Inc.*/** ...................... 564,800
-----------
OFFICE & BUSINESS EQUIPMENT--0.3%
21,000 United Stationers, Inc.* .............................. 384,563
-----------
OFFICE PRODUCTS--0.1%
7,900 Global Imaging Systems, Inc.* ......................... 145,656
-----------
OIL DOMESTIC--0.1%
7,500 Houston Exploration Co., (The)* ....................... 115,781
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
OIL & GAS FIELD EXPLORATION--0.0%
7,200 Forest Oil Corp.* ..................................... $ 45,900
-----------
OIL & GAS TRANSPORT--0.2%
21,000 Offshore Logistics, Inc.* ............................. 183,094
-----------
PHARMACEUTICALS--2.5%
20,900 Advance Paradigm, Inc.*/** ............................ 753,706
9,300 Alpharma, Inc., Class A ............................... 352,238
22,100 King Pharmaceuticals, Inc.* ........................... 533,163
9,100 Liposome Co., Inc. (The)* ............................. 124,556
14,700 Medco Research, Inc.* ................................. 337,181
9,300 Medicis Pharmaceutical Corp., Class A* ................ 351,075
13,600 Roberts Pharmaceutical Corp.* ......................... 307,700
-----------
2,759,619
-----------
PUBLISHING--0.1%
4,600 Big Flower Holdings, Inc.* ............................ 110,975
-----------
RESEARCH--0.3%
14,200 Kendle International, Inc.*/** ........................ 342,575
-----------
RESIDENTIAL CONSTRUCTION--1.1%
37,100 Beazer Homes USA, Inc.*/** ............................ 806,925
10,300 NVR, Inc.*/** ......................................... 442,900
-----------
1,249,825
-----------
RESTAURANTS--1.1%
16,400 Foodmaker, Inc.* ...................................... 377,200
93,800 Taco Cabana, Inc., Class A* ........................... 814,888
-----------
1,192,088
-----------
RETAIL - DRUG STORES--0.3%
11,200 Duane Reade, Inc.*/** ................................. 338,800
-----------
RETAIL - JEWELRY STORES--1.0%
71,300 Friedman's, Inc., Class A* ............................ 748,650
9,200 Zale Corp.* ........................................... 304,750
-----------
1,053,400
-----------
RETAIL - SPECIALTY--4.7%
9,300 Ames Department Stores, Inc.* ......................... 279,000
42,600 Brookstone, Inc.* ..................................... 532,500
33,900 Central Garden & Pet Co.*/** .......................... 576,300
27,700 Cutter & Buck, Inc.* .................................. 820,613
68,800 Media Arts Group, Inc.*/** ............................ 937,400
75,700 Musicland Stores Corp.*/** ............................ 894,206
40,150 Trans World Entertainment Corp.* ...................... 554,572
37,800 White Cap Industries, Inc.* ........................... 557,550
-----------
5,152,141
-----------
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
RETAIL - SPECIALTY APPAREL--3.8%
9,050 American Eagle Outfitters, Inc.*/** ................... $ 622,753
5,600 AnnTaylor Stores Corp.* ............................... 211,750
7,500 bebe stores, inc.*/** ................................. 233,438
4,700 Buckle, Inc. (The)* ................................... 114,856
13,700 Cato Corp. (The), Class A ............................. 130,150
9,000 Chico's Fas, Inc.* .................................... 221,625
31,300 Children's Place Retail Stores, Inc. (The)* ........... 899,875
14,200 Fossil, Inc.* ......................................... 447,300
8,300 Intimate Brands, Inc.** ............................... 326,294
19,900 Pacific Sunwear of California, Inc.* .................. 567,150
6,600 Quicksilver, Inc.* .................................... 223,987
3,100 Wet Seal, Inc. (The), Class A* ........................ 120,319
-----------
4,119,497
-----------
SCHOOLS--0.5%
21,200 Education Management Corp.* ........................... 569,750
-----------
SERVICES - EMPLOYMENT AGENCIES--0.6%
35,500 Data Processing Resources Corp.*/** ................... 674,500
-----------
SERVICES - ENGINEERING SERVICES--0.5%
27,800 URS Corp.* ............................................ 545,575
-----------
SERVICES - MANAGEMENT CONSULTING--2.0%
6,800 First Consulting Group, Inc.* ......................... 96,050
19,700 MAXIMUS, Inc.*/** ..................................... 550,369
2,500 Metzler Group, Inc. (The)* ............................ 106,250
41,300 Orthodontic Centers of America, Inc.* ................. 619,500
25,800 Professional Detailing, Inc.*/** ...................... 803,025
-----------
2,175,194
-----------
SERVICES - NURSING & PERSONAL CARE
FACILITIES--0.3%
38,700 Capital Senior Living Corp.* .......................... 365,231
-----------
SERVICES - SYSTEMS CONSULTING--0.4%
8,000 Complete Business Solutions, Inc.* .................... 226,000
12,200 Cotelligent, Inc.* .................................... 161,650
1,800 Intraware, Inc.* ...................................... 33,975
-----------
421,625
-----------
SURGICAL & MEDICAL INSTRUMENTS--0.8%
22,950 Xomed Surgical Products, Inc.* ........................ 834,806
-----------
TELECOMMUNICATIONS EQUIPMENT--5.6%
18,100 Carrier Access Corp.*/** .............................. 714,950
56,900 CellStar Corp.*/** .................................... 647,238
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT--(CONTINUED)
6,900 CommScope, Inc.* ...................................... $ 128,081
46,000 DSP Communications, Inc.*/** .......................... 690,000
46,600 Melita International Corp.*/** ........................ 876,663
51,800 Microwave Power Devices, Inc.*/** ..................... 518,000
63,300 Periphonics Corp.*/** ................................. 664,650
3,700 Pinnacle Holdings, Inc.* .............................. 52,494
40,000 Polycom, Inc.* ........................................ 810,000
10,800 RF Micro Devices, Inc.* ............................... 831,600
11,500 Teltrend, Inc.* ....................................... 219,219
-----------
6,152,895
-----------
TOYS--0.7%
48,800 JAKKS Pacific, Inc.* .................................. 814,350
-----------
TRANSPORTATION--1.7%
16,500 American Freightways Corp.* ........................... 257,297
10,500 Landstar Systems, Inc.* ............................... 396,047
19,300 USFreightways Corp.** ................................. 615,188
28,800 Varlen Corp. .......................................... 604,800
-----------
1,873,332
-----------
UTILITIES--0.4%
13,200 Calpine Corp.* ........................................ 432,300
-----------
VISIONCARE--0.8%
31,000 Laser Vision Centers, Inc.* ........................... 864,125
-----------
WASTE MANAGEMENT--0.7%
4,900 Casella Waste Systems, Inc., Class A*/** .............. 102,900
27,100 U.S. Liquids, Inc.* ................................... 614,831
-----------
717,731
-----------
WHOLESALE - DRUG DISTRIBUTION--1.5%
37,100 D & K Healthcare Resources, Inc.* ..................... 844,025
20,500 Priority Healthcare Corp., Class B* ................... 798,219
-----------
1,642,244
-----------
WHOLESALE - GROCERIES & GENERAL LINE--0.5%
22,800 United Natural Foods, Inc.* ........................... 572,850
-----------
WHOLESALE - SPECIALTY EQUIPMENT--1.3%
60,600 CHS Electronics, Inc.* ................................ 424,200
17,100 Insight Enterprises, Inc.* ............................ 397,575
61,000 Savoir Technology Group, Inc.*/** ..................... 610,000
-----------
1,431,775
-----------
Total Common Stocks
(Cost $99,228,016) .................................. 100,128,913
-----------
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (000's) (NOTE 1)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--6.0%
REPURCHASE AGREEMENT--6.0%
$6,592 Bear, Stearns & Co., Inc.
(Agreement dated 02/26/99 to be
repurchased at $6,594,802)
4.77%, 03/01/99
(Cost $6,592,182) (Note 6) .......................... $ 6,592,182
-----------
Total Investments -- 97.5%
(Cost $105,820,198) ................................. 106,721,095
-----------
Other Assets in Excess
of Liabilities -- 2.5% .............................. 2,743,412
------------
Net Assets -- 100.0% .................................. $109,464,507
============
- ----------
* Non-income producing.
** Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS--96.5%
Advertising--0.6%
8,100 TMP Worldwide Inc.*/** ................................ $ 455,625
-----------
AEROSPACE--1.3%
5,800 B.F. Goodrich Co. (The)** ............................. 197,925
17,600 Cordant Technologies Inc. ............................. 685,300
9,400 Kellstrom Industries, Inc.*/** ........................ 152,162
-----------
1,035,387
-----------
AIR TRANSPORT--0.5%
12,800 Eagle USA Airfreight, Inc.*/** ........................ 369,600
-----------
AMUSEMENT & RECREATIONAL SERVICES--0.1%
1,400 Polaris Industries Inc. ............................... 39,550
-----------
APPAREL--1.9%
9,900 Tarrant Apparel Group*/** ............................. 382,387
10,400 Tommy Hilfiger Corp.* ................................. 718,250
18,000 Warnaco Group, Inc. (The), Class A .................... 405,000
-----------
1,505,637
-----------
AUTOMOBILE PARTS & EQUIPMENT--0.3%
6,100 CSK Auto Corp.* ....................................... 209,306
-----------
AUTOMOBILE RENTALS--0.1%
3,400 Avis Rent A Car, Inc.* ................................ 77,988
-----------
AUTOMOBILE SALES & SERVICING--0.3%
14,600 Sonic Automotive, Inc.* ............................... 235,425
-----------
BEVERAGES--0.1%
3,100 Robert Mondavi Corp., Class A*/** ..................... 106,562
-----------
CHEMICALS - SPECIALTY--1.0%
6,900 Cytec Industries Inc.* ................................ 185,006
9,100 MacDermid, Inc.** ..................................... 341,250
19,000 W.R. Grace & Co.* ..................................... 255,312
-----------
781,568
-----------
COMMERCIAL PRINTING--1.0%
15,500 Valassis Communications, Inc.* ........................ 744,000
-----------
COMMERCIAL SERVICES--3.9%
6,200 ADVO, Inc.* ........................................... 124,000
3,400 American Management Systems, Inc.* .................... 113,475
1,700 Analytical Surveys, Inc.*/** .......................... 44,200
2,400 Bell & Howell Co.* .................................... 79,500
11,100 CSG Systems International, Inc.* ...................... 790,875
28,700 Hussmann International, Inc.** ........................ 405,387
3,700 Lason Inc.* ........................................... 200,494
11,900 Plexus Corp.* ......................................... 388,981
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES--(CONTINUED)
6,700 Pre-Paid Legal Services, Inc.* ........................ $ 192,625
8,800 Quanta Services, Inc.*/** ............................. 237,600
8,900 RCM Technologies, Inc.* ............................... 164,650
33,400 Seitel, Inc.* ......................................... 319,387
-----------
3,061,174
-----------
COMPUTER COMPONENTS--3.0%
16,100 Apex PC Solutions, Inc.* .............................. 394,450
13,000 Computer Network Technology Corp.* .................... 154,375
17,600 Hutchinson Technology, Inc.*/** ....................... 547,800
45,600 InterVoice, Inc.* ..................................... 495,900
20,600 Xircom, Inc.* ......................................... 700,400
-----------
2,292,925
-----------
COMPUTER & OFFICE EQUIPMENT--0.9%
2,400 CDW Computer Centers, Inc.* ........................... 167,100
5,000 Lexmark International Group, Inc., Class A* ........... 515,937
-----------
683,037
-----------
COMPUTERS, SOFTWARE & SERVICING--13.2%
5,100 Adobe Systems Inc. .................................... 205,275
300 Advantage Learning Systems, Inc.* ..................... 22,575
2,200 Apple Computer, Inc.*/** .............................. 76,587
7,900 Aspect Development, Inc.* ............................. 240,950
10,400 BroadVision, Inc.* .................................... 466,700
10,500 Citrix Systems, Inc.* ................................. 809,812
14,200 Clarify, Inc.* ........................................ 385,175
2,300 CMGI, Inc.* ........................................... 282,037
3,600 Computer Task Group, Inc. ............................. 72,900
8,000 Concord Communications, Inc.*/** ...................... 453,000
17,800 Diebold, Inc. ......................................... 519,537
4,000 DSET Corp.* ........................................... 48,000
3,450 FactSet Research Systems, Inc. ........................ 143,822
33,200 Genesys Telecommuncations Laboratories, Inc.* ......... 560,250
1,100 Great Plains Software, Inc.*/** ....................... 46,200
10,700 Jack Henry & Associates, Inc. ......................... 385,200
13,900 Legato Systems, Inc.* ................................. 684,575
7,500 Macromedia, Inc.* ..................................... 229,219
9,100 Maxwell Technologies, Inc.* ........................... 233,756
8,400 Mercury Interactive Corp.*/** ......................... 544,425
1,200 Network Solutions, Inc., Class A* ..................... 217,800
5,100 New Era of Networks, Inc.*/** ......................... 318,112
300 pcOrder.com, Inc.* .................................... 14,137
10,800 Peregrine Systems, Inc.* .............................. 276,750
13,300 Pinnacle Systems, Inc.*/** ............................ 476,306
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMPUTERS, SOFTWARE & SERVICING--(CONTINUED)
2,900 Pixar, Inc.*/** ....................................... $ 119,262
16,200 Pomeroy Computer Resources, Inc.* ..................... 366,525
8,300 Rational Software Corp.* .............................. 246,406
1,300 SCM Microsystems, Inc.* ............................... 107,900
6,100 Siebel Systems, Inc.* ................................. 268,400
18,300 Software AG Systems, Inc.* ............................ 204,731
3,400 Sterling Software, Inc.* .............................. 86,700
30,250 THQ, Inc.* ............................................ 601,219
11,500 Verity, Inc.* ......................................... 444,187
11,600 Zomax Optical Media, Inc.* ............................ 151,162
-----------
10,309,592
-----------
CONSTRUCTION--0.8%
12,700 Centex Construction Products, Inc. .................... 453,231
4,600 NVR, Inc.*/** ......................................... 197,800
-----------
651,031
-----------
ELECTRICAL EQUIPMENT--1.0%
10,600 American Power Conversion Corp.* ...................... 380,275
14,750 General Cable Corp. ................................... 277,484
7,000 GenRad, Inc.*/** ...................................... 119,875
-----------
777,634
-----------
ELECTRONIC COMPONENTS--4.3%
24,400 Adaptec, Inc.* ........................................ 486,475
25,400 Aeroflex, Inc.* ....................................... 341,312
15,800 Applied Micro Circuits Corp.*/** ...................... 620,150
1,400 Micrel, Inc.* ......................................... 63,000
13,100 Sanmina Corp.* ........................................ 684,475
17,500 Sawtek, Inc.* ......................................... 389,375
20,800 TranSwitch Corp.*/** .................................. 722,800
1,200 Xilinx, Inc.* ......................................... 83,700
-----------
3,391,287
-----------
ELECTRONIC COMPONENTS & ACCESSORIES--4.0%
3,000 Alpha Industries, Inc.* ............................... 61,125
5,800 Broadcom Corp., Class A* .............................. 349,087
30,800 Cable Design Technologies Corp.* ...................... 398,475
3,500 DII Group, Inc. (The)* ................................ 81,812
13,200 Electronics for Imaging, Inc.* ........................ 461,175
21,200 Jabil Circuit, Inc.* .................................. 691,650
13,900 NeoMagic Corp.*/** .................................... 151,162
18,400 Power Intergrations, Inc.* ............................ 443,900
4,800 QLogic Corp.* ......................................... 279,000
5,300 Veeco Instruments, Inc.* .............................. 202,725
-----------
3,120,111
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
ENGINES--0.6%
9,700 Briggs & Stratton Corp. ............................... $ 473,481
-----------
FINANCIAL SERVICES--2.2%
4,600 Doral Financial Corp. ................................. 87,113
5,100 Federated Investors, Inc., Class B .................... 97,856
17,639 HUBCO, Inc. ........................................... 578,780
100 Investment Technology Group, Inc.*/** ................. 4,094
5,300 Metris Companies, Inc. ................................ 227,900
11,800 NCO Group, Inc.* ...................................... 368,750
18,800 Waddell & Reed Financial, Inc., Class A ............... 354,850
-----------
1,719,343
-----------
FLORAL PRODUCTS--0.2%
9,000 U.S.A. Floral Products, Inc.* ......................... 126,000
-----------
FOOD & AGRICULTURE--2.6%
8,100 Fleming Companies, Inc. ............................... 59,738
5,700 Flowers Industries, Inc. .............................. 138,938
15,500 Fresh Del Monte Produce, Inc.* ........................ 285,781
19,200 International Home Foods, Inc.* ....................... 300,000
8,000 Keebler Foods Co.* .................................... 312,000
11,700 Pilgrim's Pride Corp., Class B ........................ 223,031
6,800 Smithfield Foods, Inc.* ............................... 178,713
13,200 Suiza Foods Corp.*/** ................................. 488,400
-----------
1,986,601
-----------
HEALTHCARE--0.3%
3,500 PacifiCare Health Systems, Inc., Class B* ............. 252,875
-----------
HOUSEHOLD PRODUCTS--0.4%
7,900 Blyth Industries, Inc.* ............................... 213,300
4,100 Libbey, Inc.** ........................................ 122,231
-----------
335,531
-----------
INDUSTRIAL MACHINERY--1.7%
20,200 Astec Industries, Inc.* ............................... 555,500
6,800 JLG Industries, Inc. .................................. 95,625
25,000 Terex Corp.*/** ....................................... 640,625
-----------
1,291,750
-----------
INSURANCE--1.5%
9,800 ARM Financial Group, Inc., Class A** .................. 152,512
2,900 CMAC Investment Corp.** ............................... 119,806
23,900 Conseco, Inc. ......................................... 715,506
3,210 Delphi Financial Group, Inc., Class A* ................ 153,879
-----------
1,141,703
-----------
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
INSURANCE - PROPERTY & CASUALTY--0.5%
10,500 LandAmerica Financial Group, Inc.** ................... $ 377,344
-----------
INSURANCE - TITLE INSURANCE--0.9%
5,500 Chicago Title Corp. ................................... 192,844
26,334 Fidelity National Financial, Inc. ..................... 526,680
-----------
719,524
-----------
INTEGRATED CIRCUITS--0.1%
1,900 Vitesse Semiconductor Corp.* .......................... 87,281
-----------
LEISURE & ENTERTAINMENT--1.7%
79,400 Acclaim Entertainment, Inc.* .......................... 620,313
5,200 Adelphia Communications Corp., Class A* ............... 293,150
13,700 Hollywood Entertainment Corp.* ........................ 375,894
-----------
1,289,357
-----------
MACHINERY--0.8%
10,900 Manitowoc Co., Inc. (The) ............................. 401,938
4,200 McDermott International, Inc. ......................... 83,738
1,800 Sundstrand Corp. ...................................... 121,837
-----------
607,513
-----------
MANUFACTURING--1.3%
16,600 MotivePower Industries, Inc.* ......................... 457,538
7,300 Tredegar Industries, Inc. ............................. 186,606
9,800 YORK International Corp. .............................. 355,250
-----------
999,394
-----------
MEDICAL INSTRUMENTS & SUPPLIES--3.8%
22,900 Ocular Sciences, Inc.* ................................ 561,050
3,200 Patterson Dental Co.* ................................. 129,600
4,600 Perclose, Inc.* ....................................... 194,350
15,800 ResMed, Inc.* ......................................... 489,800
16,500 STERIS Corp.*/** ...................................... 542,438
11,600 Waters Corp.* ......................................... 1,079,525
-----------
2,996,763
-----------
MEDICAL & MEDICAL SERVICES--2.0%
1,400 Andrx Corp.*/** ....................................... 95,025
2,900 Eclipsys Corp.* ....................................... 89,356
6,800 Hooper Holmes, Inc. ................................... 102,000
2,500 Lincare Holdings, Inc.*/** ............................ 89,063
5,400 MedQuist, Inc.* ....................................... 184,613
13,200 Osteotech, Inc.* ...................................... 714,450
4,000 Shared Medical Systems Corp.** ........................ 204,000
8,795 Total Renal Care Holdings, Inc.* ...................... 78,056
-----------
1,556,563
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
MOTOR HOMES--0.5%
18,050 National R.V. Holdings, Inc.* ......................... $ 398,228
-----------
NEWSPAPER PUBLISHING & PRINTING--0.2%
11,000 Hollinger International Inc.** ........................ 136,125
-----------
OFFICE & BUSINESS EQUIPMENT--0.6%
3,500 HON INDUSTRIES Inc. ................................... 83,125
19,400 United Stationers, Inc.* .............................. 355,263
-----------
438,388
-----------
PHARMACEUTICALS--5.2%
14,500 Advance Paradigm, Inc.* ............................... 522,906
6,200 Alpharma, Inc., Class A ............................... 234,825
13,500 Biogen, Inc.* ......................................... 1,297,688
5,100 Cephalon, Inc.* ....................................... 39,206
8,300 King Pharmaceuticals, Inc.* ........................... 200,238
9,600 Liposome Co., Inc. (The)* ............................. 131,400
18,100 Medicis Pharmaceutical Corp., Class A* ................ 683,275
12,000 MedImmune, Inc.*/** ................................... 660,000
13,900 Roberts Pharmaceutical Corp.* ......................... 314,488
-----------
4,084,026
-----------
PLASTICS--0.6%
28,300 Tupperware Corp. ...................................... 495,250
-----------
REAL ESTATE--0.8%
43,800 Catellus Development Corp.* ........................... 632,363
-----------
RESIDENTIAL CONSTRUCTION--0.6%
25,700 D.R. Horton, Inc. ..................................... 409,594
7,200 Standard Pacific Corp. ................................ 89,100
-----------
498,694
-----------
RESTAURANTS--0.8%
27,600 Foodmaker, Inc.* ...................................... 634,800
-----------
RETAIL - JEWELRY STORES--0.8%
18,800 Zale Corp.* ........................................... 622,750
-----------
RETAIL - SHOE STORES--0.2%
2,100 Payless ShoeSource, Inc.* ............................. 115,238
-----------
RETAIL - SPECIALTY--4.0%
2,100 Action Performance Companies, Inc.* ................... 75,338
9,200 Ames Department Stores, Inc.* ......................... 276,000
9,400 Best Buy Co., Inc.* ................................... 871,850
13,800 Central Garden & Pet Co.*/** .......................... 234,600
9,100 Department 56, Inc.* .................................. 302,006
6,700 Linens 'n Things, Inc.* ............................... 241,200
10,600 Media Arts Group, Inc.*/** ............................ 144,425
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
RETAIL - SPECIALTY--(CONTINUED)
42,400 Musicland Stores Corp.*/** ............................ $ 500,850
33,600 Trans World Entertainment Corp.* ...................... 464,100
-----------
3,110,369
-----------
RETAIL - SPECIALTY APPAREL--7.0%
11,900 Abercrombie & Fitch Co., Class A* ..................... 904,400
12,600 American Eagle Outfitters, Inc.*/** ................... 867,038
9,600 AnnTaylor Stores Corp.* ............................... 363,000
5,200 Buckle, Inc. (The)* ................................... 127,075
10,800 Chico's Fas, Inc.* .................................... 265,950
15,800 Children's Place Retail Stores, Inc. (The)* ........... 454,250
11,700 Fossil, Inc.* ......................................... 368,550
13,400 Intimate Brands, Inc.** ............................... 526,788
3,100 Men's Wearhouse, Inc. (The)* .......................... 91,063
8,100 Pacific Sunwear of California, Inc.* .................. 230,850
2,400 Quicksilver, Inc.* .................................... 81,450
15,800 Ross Stores, Inc. ..................................... 722,850
8,700 TJX Companies, Inc. (The) ............................. 248,494
5,200 Wet Seal, Inc. (The), Class A* ........................ 201,825
-----------
5,453,583
-----------
SCHOOLS--0.3%
6,100 Education Management Corp.* ........................... 163,938
1,600 Sylvan Learning Systems, Inc.*/** ..................... 53,200
-----------
217,138
-----------
SERVICES - COMPUTER INTEGRATED
SYSTEMS DESIGN--1.2%
13,600 Comverse Technology, Inc.* ............................ 975,800
-----------
SERVICES - EMPLOYMENT AGENCIES--0.4%
8,300 Data Processing Resources Corp.* ...................... 157,700
3,125 Labor Ready, Inc.* .................................... 88,086
5,900 Modis Professional Services, Inc.* .................... 80,756
-----------
326,542
-----------
SERVICES - EQUIPMENT RENTAL & LEASING--0.3%
7,300 United Rentals (North America), Inc.* ................. 234,969
-----------
SERVICES - MANAGEMENT CONSULTING--0.8%
2,500 MAXIMUS, Inc.*/** ..................................... 69,844
3,600 Metzler Group, Inc. (The)* ............................ 153,000
24,500 Orthodontic Centers of America, Inc.* ................. 367,500
-----------
590,344
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
SERVICES - SYSTEMS CONSULTING--1.5%
4,000 CIBER, Inc.*/** ....................................... $ 100,500
7,800 Complete Business Solutions, Inc.* .................... 220,350
1,300 Intraware, Inc.* ...................................... 24,537
21,300 Mastech Corp.* ........................................ 531,169
9,800 USWeb Corp.* .......................................... 330,137
-----------
1,206,693
-----------
STEEL--0.1%
12,600 Oregon Steel Mills, Inc. .............................. 120,488
-----------
SURGICAL & MEDICAL INSTRUMENTS--1.6%
11,800 VISX, Inc.* ........................................... 728,650
15,050 Xomed Surgical Products, Inc.* ........................ 547,444
-----------
1,276,094
-----------
TELECOMMUNICATIONS EQUIPMENT--4.8%
2,500 Aware, Inc.* .......................................... 86,563
12,800 Carrier Access Corp.*/** .............................. 505,600
24,400 CellStar Corp.*/** .................................... 277,550
9,500 CommScope, Inc.* ...................................... 176,344
21,100 DSP Communications, Inc.*/** .......................... 316,500
7,300 GeoTel Communications Corp.* .......................... 314,356
6,600 Melita International Corp.* ........................... 124,163
2,800 Metromedia Fiber Network, Inc.* ....................... 121,800
2,600 Pinnacle Holdings, Inc.* .............................. 36,888
27,000 Polycom, Inc.* ........................................ 546,750
1,100 QUALCOMM, Inc.* ....................................... 80,300
8,300 RF Micro Devices, Inc.* ............................... 639,100
6,300 Tellabs, Inc.* ........................................ 504,394
-----------
3,730,308
-----------
TEXTILES--0.2%
7,200 Pillowtex Corp. ....................................... 174,600
-----------
TOBACCO--0.6%
16,100 Universal Corp.-VA .................................... 437,719
-----------
TRANSPORTATION--1.7%
15,500 GATX Corp. ............................................ 535,719
6,100 Swift Transportation Co., Inc.* ....................... 182,619
14,400 USFreightways Corp.** ................................. 459,000
6,600 Varlen Corp. .......................................... 138,600
-----------
1,315,938
-----------
UTILITIES--0.1%
2,700 Calpine Corp.* ........................................ 88,425
-----------
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
VISIONCARE--0.8%
22,800 Laser Vision Centers, Inc.* .......................... $ 635,550
-----------
WHOLESALE - DRUG DISTRIBUTION--1.3%
3,700 AmeriSource Health Corp., Class A* ................... 276,113
28,900 Bergen Brunswig Corp., Class A ....................... 706,244
1,000 Priority Healthcare Corp., Class B* .................. 38,844
-----------
1,021,201
-----------
WHOLESALE - SPECIALTY EQUIPMENT--0.6%
45,800 CHS Electronics, Inc.* ............................... 320,600
7,950 Insight Enterprises, Inc.* ........................... 184,837
-----------
505,437
-----------
Total Common Stocks
(Cost $73,343,026) ................................. 75,285,522
-----------
- -------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (000's) (NOTE 1)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--3.5%
REPURCHASE AGREEMENT--3.5%
$2,734 Bear, Stearns & Co., Inc.
(Agreement dated 02/26/99 to be
repurchased at $2,734,638)
4.77%, 03/01/99
(Cost $2,733,551) (Note 6) ......................... $ 2,733,551
-----------
Total Investments -- 100.0%
(Cost $76,076,577) ................................. 78,019,073
-----------
Liabilities in Excess of
Other Assets -- 0.0% ............................... (5,498)
-----------
Net Assets -- 100.0% ................................. $78,013,575
===========
- ----------
* 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
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH & VALUE FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS--97.9%
Advertising--1.0%
13,600 TMP Worldwide Inc.*/** ................................ $ 765,000
-----------
AEROSPACE--2.0%
10,200 B.F. Goodrich Co. (The)** ............................. 348,075
22,600 Cordant Technologies Inc. ............................. 879,987
18,000 Howmet International Inc.* ............................ 290,250
-----------
1,518,312
-----------
AGRICULTURAL SERVICES--0.6%
23,600 IMC Global Inc. ....................................... 470,525
-----------
AIR TRANSPORT--0.2%
4,100 Airborne Freight Corp.** .............................. 159,900
-----------
AIRLINES--0.5%
7,400 Alaska Air Group, Inc.* ............................... 375,087
-----------
APPAREL--1.5%
12,200 Tommy Hilfiger Corp.* ................................. 842,562
14,800 Warnaco Group, Inc. (The), Class A .................... 333,000
-----------
1,175,562
-----------
AUTOMOBILE MANUFACTURING--0.3%
6,100 PACCAR Inc. ........................................... 255,437
-----------
AUTOMOBILE PARTS & EQUIPMENT--1.8%
6,000 Borg-Warner Automotive, Inc.** ........................ 261,375
2,100 Federal-Mogul Corp.** ................................. 103,294
47,400 Meritor Automotive, Inc. .............................. 752,475
6,600 TRW Inc. .............................................. 311,850
-----------
1,428,994
-----------
BANKS--1.5%
28,000 Hibernia Corp., Class A ............................... 453,250
10,600 North Fork Bancorporation, Inc. ....................... 233,200
13,100 TCF Financial Corp.** ................................. 315,219
6,400 UnionBanCal Corp.** ................................... 201,200
-----------
1,202,869
-----------
BROKERAGE--1.4%
5,000 Knight/Trimark Group, Inc., Class A*/** ............... 173,750
15,400 Lehman Brothers Holdings Inc. ......................... 816,200
3,500 Paine Webber Group Inc. ............................... 130,813
-----------
1,120,763
-----------
BUILDING SUPPLIES--1.7%
6,600 Armstrong World Industries, Inc. ...................... 324,637
5,600 Carlisle Companies, Inc. .............................. 231,700
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
BUILDING SUPPLIES--(CONTINUED)
6,000 Louisiana-Pacific Corp. ............................... $ 110,250
13,300 USG Corp. ............................................. 666,662
-----------
1,333,249
-----------
CHEMICALS - DIVERSIFIED--1.4%
3,200 FMC Corp.* ............................................ 163,800
53,800 Solutia Inc. .......................................... 958,312
-----------
1,122,112
-----------
CHEMICALS - SPECIALTY--1.5%
4,600 Albemarle Corp. ....................................... 108,675
32,500 Crompton & Knowles Corp. .............................. 601,250
3,000 Cytec Industries Inc.* ................................ 80,437
30,800 W.R. Grace & Co.* ..................................... 413,875
-----------
1,204,237
-----------
COMMERCIAL PRINTING--1.1%
17,600 Valassis Communications, Inc.* ........................ 844,800
-----------
COMMERCIAL SERVICES--1.4%
1,600 Affiliated Computer Services, Inc., Class A*/** ....... 74,000
9,900 CSG Systems International, Inc.* ...................... 705,375
15,900 Reynolds and Reynolds Co. (The), Class A .............. 300,112
-----------
1,079,487
-----------
COMPUTER & OFFICE EQUIPMENT--1.0%
4,000 CDW Computer Centers, Inc.* ........................... 278,500
4,700 Lexmark International Group, Inc., Class A* ........... 484,981
-----------
763,481
----------
COMPUTERS, SOFTWARE & SERVICING--9.0%
20,200 Apple Computer, Inc.*/** .............................. 703,212
13,400 Citrix Systems, Inc.* ................................. 1,033,475
2,900 Computer Associates International, Inc. ............... 121,800
29,800 Diebold, Inc. ......................................... 869,787
21,600 Legato Systems, Inc.* ................................. 1,063,800
2,500 Macromedia, Inc.* ..................................... 76,406
1,500 Mercury Interactive Corp.*/** ......................... 97,219
20,000 Peregrine Systems, Inc.* .............................. 512,500
13,100 Pixar, Inc.*/** ....................................... 538,737
15,600 Rational Software Corp.* .............................. 463,125
12,300 Siebel Systems, Inc.* ................................. 541,200
3,600 Sterling Software, Inc.* .............................. 91,800
5,300 Yahoo! Inc.* .......................................... 813,550
-----------
6,926,611
-----------
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH & VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
ELECTRONIC COMPONENTS--3.3%
24,700 Adaptec, Inc.* ........................................ $ 492,456
14,200 American Power Conversion Corp.* ...................... 509,425
4,300 Applied Power Inc., Class A ........................... 103,738
18,600 Level One Communications, Inc.* ....................... 623,100
13,100 Sanmina Corp.* ........................................ 684,475
4,000 Vitesse Semiconductor Corp.* .......................... 183,750
-----------
2,596,944
-----------
ELECTRONIC COMPONENTS & ACCESSORIES--2.5%
2,600 Broadcom Corp., Class A* .............................. 156,487
12,600 Electronics for Imaging, Inc.* ........................ 440,212
24,800 Jabil Circuit, Inc.* .................................. 809,100
9,800 QLogic Corp.* ......................................... 569,625
-----------
1,975,424
-----------
ENGINES--0.5%
7,400 Briggs & Stratton Corp. ............................... 361,213
-----------
FINANCIAL SERVICES--4.0%
13,200 Ameritrade Holding Corp., Class A*/** ................. 643,500
16,800 Countrywide Credit Industries, Inc. ................... 636,300
42,800 Federated Investors, Inc., Class B .................... 821,225
25,100 HUBCO, Inc. ........................................... 823,594
4,400 Investment Technology Group, Inc.*/** ................. 180,125
4,600 Peoples Heritage Financial Group, Inc. ................ 78,200
-----------
3,182,944
-----------
FOOD & AGRICULTURE--4.0%
43,600 IBP, Inc. ............................................. 981,000
18,900 International Home Foods, Inc.* ....................... 295,313
30,000 Smithfield Foods, Inc.* ............................... 788,438
25,700 Suiza Foods Corp.*/** ................................. 950,900
5,500 Universal Foods Corp. ................................. 124,781
-----------
3,140,432
-----------
HEALTHCARE--0.6%
6,400 PacifiCare Health Systems, Inc., Class B* ............. 462,400
-----------
HOME FURNISHINGS--0.3%
2,200 Mohawk Industries, Inc.* .............................. 71,500
6,300 Shaw Industries, Inc.* ................................ 138,206
-----------
209,706
-----------
HOUSEHOLD PRODUCTS--0.1%
3,500 Blyth Industries, Inc.* ............................... 94,500
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
INSURANCE--2.5%
27,100 Conseco, Inc. ......................................... $ 811,306
12,800 Financial Security Assurance Holdings Ltd.** .......... 676,000
11,100 PMI Group, Inc. (The) ................................. 478,688
-----------
1,965,994
-----------
INSURANCE - LIFE--0.2%
6,200 MONY Group Inc. (The)** ............................... 156,938
-----------
INSURANCE - PROPERTY & CASUALTY--1.6%
33,100 First American Financial Corp. (The) .................. 775,781
41,300 Reliance Group Holdings, Inc. ......................... 425,906
-----------
1,201,687
-----------
LEASING & RENTAL--0.3%
2,900 Hertz Corp. (The), Class A ............................ 115,456
5,500 Ryder System, Inc. .................................... 148,500
-----------
263,956
-----------
LUMBER & WOOD PRODUCTS--0.3%
9,800 Georgia-Pacific Corp. (Timber Group) .................. 199,675
-----------
MACHINERY--1.5%
37,200 McDermott International, Inc. ......................... 741,675
6,500 Sundstrand Corp. ...................................... 439,969
-----------
1,181,644
-----------
MANUFACTURING--3.1%
13,000 American Standard Companies Inc.* ..................... 436,313
8,800 Crane Co. ............................................. 241,450
9,100 Southdown, Inc. ....................................... 429,406
9,300 Trinity Industries, Inc. .............................. 306,319
2,000 Tyco International Ltd.** ............................. 148,875
23,400 YORK International Corp. .............................. 848,250
-----------
2,410,613
-----------
MEDICAL INSTRUMENTS & SUPPLIES--3.7%
33,000 DENTSPLY International Inc. ........................... 841,500
14,100 Mallinckrodt Inc. ..................................... 436,219
24,300 STERIS Corp.* ......................................... 798,863
8,500 Waters Corp.* ......................................... 791,031
-----------
2,867,613
-----------
MEDICAL & MEDICAL SERVICES--0.7%
4,900 Renal Care Group, Inc.* ............................... 97,081
3,700 Shared Medical Systems Corp.** ........................ 188,700
25,300 Total Renal Care Holdings, Inc.* ...................... 224,538
-----------
510,319
-----------
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH & VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--1.9%
7,400 AGL Resources Inc. .................................... $ 141,063
10,100 K N Energy, Inc. ...................................... 211,469
8,600 NICOR Inc. ............................................ 328,413
89,500 Union Pacific Resources Group Inc. .................... 799,906
-----------
1,480,851
-----------
NEWSPAPER PUBLISHING & PRINTING--1.2%
47,800 Hollinger International Inc.** ........................ 591,525
6,000 Knight Ridder, Inc. ................................... 301,125
-----------
892,650
-----------
OFFICE & BUSINESS EQUIPMENT--0.6%
15,400 HON INDUSTRIES Inc. ................................... 365,750
4,500 Knoll, Inc.* .......................................... 86,063
-----------
451,813
-----------
OIL & GAS FIELD EXPLORATION--2.8%
23,800 Kerr-McGee Corp. ...................................... 679,788
56,000 MCN Energy Group Inc.** ............................... 997,500
6,600 Murphy Oil Corp.** .................................... 225,638
7,200 Transocean Offshore Inc. .............................. 148,500
5,600 USX-Marathon Group .................................... 115,850
-----------
2,167,276
-----------
PHARMACEUTICALS--3.6%
1,600 Amgen Inc.* ........................................... 199,800
15,400 Biogen, Inc.* ......................................... 1,480,325
18,900 Medicis Pharmaceutical Corp., Class A* ................ 713,475
7,800 MedImmune, Inc.*/** ................................... 429,000
-----------
2,822,600
-----------
PHOTOGRAPHIC EQUIPMENT--0.6%
6,600 Eastman Kodak Co. ..................................... 436,837
-----------
PLASTICS--0.2%
7,700 Tupperware Corp. ...................................... 134,750
-----------
RESIDENTIAL CONSTRUCTION--1.0%
47,900 D.R. Horton, Inc. ..................................... 763,406
-----------
RETAIL - DEPARTMENT STORES--0.3%
6,700 Sears, Roebuck & Co. .................................. 272,188
-----------
RETAIL - JEWELRY STORES--0.8%
18,900 Zale Corp.* ........................................... 626,063
-----------
RETAIL - SHOE STORES--0.2%
2,200 Payless ShoeSource, Inc.* ............................. 120,725
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
RETAIL - SPECIALTY--1.0%
6,100 Best Buy Co., Inc.* ................................... $ 565,775
6,000 Linens 'n Things, Inc.* ............................... 216,000
-----------
781,775
-----------
RETAIL - SPECIALTY APPAREL--4.5%
13,500 Abercrombie & Fitch Co., Class A* ..................... 1,026,000
12,500 American Eagle Outfitters, Inc.*/** ................... 860,156
20,700 Intimate Brands, Inc.** ............................... 813,769
17,600 Ross Stores, Inc. ..................................... 805,200
-----------
3,505,125
-----------
SAVINGS & LOAN ASSOCIATIONS--2.1%
21,512 Charter One Financial, Inc. ........................... 619,815
16,100 Golden State Bancorp Inc.* ............................ 286,781
19,000 Washington Mutual, Inc. ............................... 760,000
-----------
1,666,596
-----------
SCHOOLS--0.2%
4,900 Sylvan Learning Systems, Inc.*/** ..................... 162,925
-----------
SERVICES - COMPUTER INTEGRATED
SYSTEMS DESIGN--1.4%
15,200 Comverse Technology, Inc.* ............................ 1,090,600
-----------
SERVICES - EQUIPMENT RENTAL & LEASING--0.8%
18,500 United Rentals (North America), Inc.* ................. 595,469
-----------
SERVICES - MANAGEMENT CONSULTING--1.1%
10,400 Comdisco, Inc. ........................................ 124,800
17,200 Metzler Group, Inc. (The)* ............................ 731,000
-----------
855,800
-----------
SERVICES - SYSTEMS CONSULTING--2.4%
23,300 CIBER, Inc.*/** ....................................... 585,412
21,300 Mastech Corp.* ........................................ 531,169
23,000 USWeb Corp.* .......................................... 774,812
-----------
1,891,393
-----------
STEEL--0.3%
9,000 AK Steel Holding Corp. ................................ 196,313
-----------
TELECOMMUNICATIONS--4.5%
12,800 ALLTEL Corp. .......................................... 766,400
3,500 BellSouth Corp. ....................................... 161,875
21,050 Century Telephone Enterprises, Inc. ................... 1,299,838
12,000 SBC Communications Inc. ............................... 634,500
12,700 US WEST, Inc. ......................................... 677,069
-----------
3,539,682
-----------
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
GROWTH & VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT--1.0%
9,600 Tellabs, Inc.* ....................................... $ 768,600
-----------
TOBACCO--1.0%
29,100 Universal Corp.-VA ................................... 791,156
-----------
TRANSPORTATION--1.6%
19,600 GATX Corp. ........................................... 677,425
18,400 Swift Transportation Co., Inc.* ...................... 550,850
-----------
1,228,275
-----------
UTILITIES--1.8%
20,900 Allegheny Energy, Inc. ............................... 620,469
22,000 PECO Energy Co. ...................................... 779,625
-----------
1,400,094
-----------
UTILITIES - ELECTRICITY--1.0%
30,400 PP&L Resources, Inc.** ............................... 775,200
-----------
WASTE MANAGEMENT--0.1%
1,500 Browning-Ferris Industries, Inc. ..................... 47,250
-----------
WHOLESALE - DRUG DISTRIBUTION--2.3%
10,800 AmeriSource Health Corp., Class A* ................... 805,950
41,600 Bergen Brunswig Corp., Class A ....................... 1,016,600
-----------
1,822,550
-----------
WHOLESALE - GROCERIES & GENERAL LINE--0.4%
11,500 SUPERVALU INC. ....................................... 276,719
-----------
WHOLESALE - SPECIALTY EQUIPMENT--0.1%
5,100 Tech Data Corp.* ..................................... 86,700
-----------
Total Common Stocks
($77,603,029) ...................................... 76,179,809
-----------
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (000's) (NOTE 1)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--2.3%
REPURCHASE AGREEMENT--2.3%
$1,804 Bear, Stearns & Co., Inc.
(Agreement dated 02/26/99 to be
repurchased at $1,804,318)
4.77%, 03/01/99
(Cost $1,803,601) (Note 6) ......................... $ 1,803,601
-----------
Total Investments -- 100.2%
(Cost $79,406,630) ................................. 77,983,410
-----------
Liabilities in Excess
of Other Assets -- (0.2%) .......................... (134,414)
-----------
Net Assets -- 100.0% ................................. $77,848,996
===========
- ----------
* Non-income producing.
** Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
LARGER CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS--95.9%
AEROSPACE--1.2%
3,100 B.F. Goodrich Co. (The)** ............................. $ 105,787
1,850 Cordant Technologies Inc. ............................. 72,034
-----------
177,821
-----------
AGRICULTURAL SERVICES--1.1%
8,300 IMC Global Inc. ....................................... 165,481
-----------
AIRLINES--0.1%
300 Alaska Air Group, Inc.* ............................... 15,206
-----------
AMUSEMENT & RECREATIONAL SERVICES--0.1%
500 Polaris Industries Inc. ............................... 14,125
-----------
APPAREL--0.3%
2,300 Warnaco Group, Inc. (The), Class A .................... 51,750
-----------
AUTOMATION SYSTEMS--0.2%
1,100 Harris Corp. .......................................... 34,237
-----------
AUTOMOBILE MANUFACTURING--0.3%
1,000 PACCAR Inc. ........................................... 41,875
-----------
AUTOMOBILE PARTS & EQUIPMENT--1.6%
1,000 Borg-Warner Automotive, Inc.** ........................ 43,562
1,300 Dana Corp.** .......................................... 49,075
600 Federal-Mogul Corp.** ................................. 29,512
2,900 Meritor Automotive, Inc. .............................. 46,037
1,400 TRW Inc. .............................................. 66,150
-----------
234,336
-----------
BANKS--9.2%
1,200 AmSouth Bancorporation ................................ 56,400
8,170 Banc One Corp. ........................................ 439,137
300 City National Corp. ................................... 9,675
300 Comerica Inc. ......................................... 19,875
932 First Union Corp. ..................................... 49,687
4,800 Hibernia Corp., Class A ............................... 77,700
4,800 KeyCorp ............................................... 154,800
400 National City Corp. ................................... 27,950
8,050 North Fork Bancorporation, Inc. ....................... 177,100
2,700 Pacific Century Financial Corp. ....................... 59,231
600 Peoples Heritage Financial Group, Inc. ................ 10,200
3,100 TCF Financial Corp.** ................................. 74,594
700 UnionBanCal Corp.** ................................... 22,006
5,300 Wells Fargo Co. ....................................... 194,775
-----------
1,373,130
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
BROKERAGE--3.5%
200 Bear Stearns Companies Inc. (The) ..................... $ 8,562
4,400 Lehman Brothers Holdings Inc. ......................... 233,200
1,500 Morgan Stanley, Dean Witter & Co. ..................... 135,750
3,800 Paine Webber Group Inc. ............................... 142,025
-----------
519,537
-----------
BUILDING SUPPLIES--1.9%
1,700 Armstrong World Industries, Inc. ...................... 83,619
200 Carlisle Companies, Inc. .............................. 8,275
2,400 Louisiana-Pacific Corp. ............................... 44,100
2,900 USG Corp. ............................................. 145,362
-----------
281,356
-----------
CHEMICALS - DIVERSIFIED--1.3%
700 FMC Corp.* ............................................ 35,831
8,700 Solutia Inc. .......................................... 154,969
-----------
190,800
-----------
CHEMICALS - SPECIALTY--0.9%
2,600 Crompton & Knowles Corp. .............................. 48,100
1,000 Engelhard Corp. ....................................... 17,812
4,800 W.R. Grace & Co.* ..................................... 64,500
-----------
130,412
-----------
COMMERCIAL PRINTING--1.1%
3,400 Valassis Communications, Inc.* ........................ 163,200
-----------
COMMERCIAL SERVICES--0.2%
1,600 Reynolds and Reynolds Co. (The), Class A .............. 30,200
-----------
COMPUTER COMPONENTS--0.5%
400 Intel Corp. ........................................... 47,975
800 Seagate Technology, Inc.* ............................. 23,150
-----------
71,125
-----------
COMPUTERS, SOFTWARE & SERVICING--4.2%
1,700 Adobe Systems Inc. .................................... 68,425
4,500 Apple Computer, Inc.*/** .............................. 156,656
4,800 Computer Associates International, Inc. ............... 201,600
5,200 Diebold, Inc. ......................................... 151,775
1,400 Sterling Software, Inc.* .............................. 35,700
1,100 Symantec Corp.* ....................................... 19,869
-----------
634,025
-----------
CONTROL SYSTEMS--0.0%
100 Honeywell Inc. ........................................ 6,994
-----------
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
LARGER CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
ELECTRIC & OTHER SERVICES--0.3%
2,000 LG&E Energy Corp. ..................................... $ 45,625
-----------
ELECTRICAL EQUIPMENT--0.1%
300 American Power Conversion Corp.* ...................... 10,762
-----------
ENERGY--3.0%
6,400 Coastal Corp. (The) ................................... 204,800
900 Equitable Resources, Inc. ............................. 23,287
200 GPU, Inc. ............................................. 7,975
8,200 PP&L Resources, Inc. .................................. 209,100
-----------
445,162
-----------
FINANCIAL SERVICES--5.9%
600 Citigroup Inc. ........................................ 35,250
5,400 Countrywide Credit Industries, Inc. ................... 204,525
2,300 Deluxe Corp. .......................................... 77,912
5,900 Fannie Mae ............................................ 413,000
3,000 Federated Investors, Inc., Class B .................... 57,562
400 FINOVA Group, Inc. (The) .............................. 20,325
500 Freddie Mac ........................................... 29,437
1,400 HUBCO, Inc. ........................................... 45,937
-----------
883,948
-----------
FOOD & AGRICULTURE--1.8%
1,000 ConAgra, Inc. ......................................... 30,125
700 Flowers Industries, Inc. .............................. 17,062
2,800 IBP, Inc. ............................................. 63,000
3,100 International Home Foods, Inc.* ....................... 48,438
3,000 Suiza Foods Corp.*/** ................................. 111,000
-----------
269,625
-----------
HEALTHCARE--0.3%
600 PacifiCare Health Systems, Inc., Class B* ............. 43,350
-----------
INSURANCE--4.6%
5,300 Allstate Corp. (The) .................................. 198,750
2,300 CMAC Investment Corp.** ............................... 95,019
7,800 Conseco, Inc. ......................................... 233,513
3,300 Old Republic International Corp. ...................... 62,081
2,300 PMI Group, Inc. (The) ................................. 99,187
-----------
688,550
-----------
INSURANCE - PROPERTY & CASUALTY--2.0%
2,500 Everest Reinsurance Holdings, Inc. .................... 82,969
5,400 First American Financial Corp. (The) .................. 126,563
3,900 Reliance Group Holdings, Inc. ......................... 40,219
1,200 Travelers Property Casualty Corp., Class A ............ 45,525
-----------
295,276
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
INSURANCE - TITLE INSURANCE--0.1%
300 Chicago Title Corp. ................................... $ 10,519
-----------
LEASING & RENTAL--0.8%
2,300 Hertz Corp. (The), Class A** .......................... 91,569
900 Ryder System, Inc. .................................... 24,300
-----------
115,869
-----------
LEISURE & ENTERTAINMENT--0.3%
1,300 Brunswick Corp. ....................................... 27,706
600 GTECH Holdings Corp.* ................................. 13,575
-----------
41,281
-----------
LUMBER & WOOD PRODUCTS--0.3%
2,000 Georgia-Pacific Corp. (Timber Group) .................. 40,750
-----------
MACHINERY--0.7%
1,600 Sundstrand Corp. ...................................... 108,300
-----------
MANUFACTURING--2.3%
2,600 American Standard Companies Inc.* ..................... 87,263
1,000 Crane Co. ............................................. 27,438
2,100 Southdown, Inc. ....................................... 99,094
1,600 Trinity Industries, Inc. .............................. 52,700
300 Tyco International Ltd. ............................... 22,331
1,400 YORK International Corp. .............................. 50,750
-----------
339,576
-----------
MEDICAL INSTRUMENTS & SUPPLIES--2.1%
6,200 Bergen Brunswig Corp., Class A ........................ 151,513
1,300 DENTSPLY International Inc. ........................... 33,150
4,100 Mallinckrodt Inc. ..................................... 126,844
-----------
311,507
-----------
MEDICAL & MEDICAL SERVICES--0.3%
800 Shared Medical Systems Corp.** ........................ 40,800
-----------
NATURAL GAS DISTRIBUTION--1.6%
400 Columbia Energy Group ................................. 20,200
2,500 K N Energy, Inc. ...................................... 52,344
1,700 NICOR Inc. ............................................ 64,919
500 Sempra Energy ......................................... 10,500
10,300 Union Pacific Resources Group Inc. .................... 92,056
-----------
240,019
-----------
NEWSPAPER PUBLISHING & PRINTING--2.0%
1,300 Central Newspapers, Inc., Class A** ................... 45,500
4,300 Hollinger International Inc.** ........................ 53,213
3,900 Knight Ridder, Inc. ................................... 195,731
-----------
294,444
-----------
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
LARGER CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
OFFICE & BUSINESS EQUIPMENT--0.3%
900 HON INDUSTRIES Inc. ................................... $ 21,375
500 Knoll, Inc.* .......................................... 9,563
800 United Stationers, Inc.* .............................. 14,650
-----------
45,588
-----------
OIL & GAS FIELD EXPLORATION--6.8%
4,000 Amerada Hess Corp. .................................... 181,500
2,900 Apache Corp. .......................................... 57,819
4,900 Kerr-McGee Corp. ...................................... 139,956
5,500 MCN Energy Group Inc.** ............................... 97,969
2,300 Murphy Oil Corp.** .................................... 78,631
1,600 Noble Affiliates, Inc.** .............................. 36,200
8,000 Occidental Petroleum Corp. ............................ 120,500
1,300 Tidewater, Inc. ....................................... 24,456
3,000 Transocean Offshore Inc. .............................. 61,875
10,100 USX-Marathon Group .................................... 208,944
-----------
1,007,850
-----------
PETROLEUM REFINING--0.1%
700 Ultramar Diamond Shamrock Corp. ....................... 13,825
-----------
PHOTOGRAPHIC EQUIPMENT--1.6%
3,600 Eastman Kodak Co. ..................................... 238,275
-----------
PLASTICS--0.5%
4,100 Tupperware Corp. ...................................... 71,750
-----------
RESIDENTIAL CONSTRUCTION--0.7%
3,600 D.R. Horton, Inc. ..................................... 57,375
2,000 Kaufman and Broad Home Corp. .......................... 45,000
-----------
102,375
-----------
RETAIL - DEPARTMENT STORES--1.8%
500 May Department Stores Co. (The) ....................... 29,625
6,100 Sears, Roebuck & Co. .................................. 247,813
-----------
277,438
-----------
RETAIL - JEWELRY STORES--0.2%
300 Claire's Stores, Inc. ................................. 6,619
900 Zale Corp.* ........................................... 29,813
-----------
36,432
-----------
RETAIL - SHOE STORES--0.3%
900 Payless ShoeSource, Inc.* ............................. 49,388
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
RETAIL - SPECIALTY APPAREL--2.7%
3,200 Intimate Brands, Inc.** ............................... $ 125,800
2,900 Ross Stores, Inc. ..................................... 132,675
5,200 TJX Companies, Inc. (The)** ........................... 148,525
-----------
407,000
-----------
SAVINGS & LOAN ASSOCIATIONS--5.3%
5,321 Charter One Financial, Inc. ........................... 153,311
3,500 Golden State Bancorp Inc.* ............................ 62,344
1,800 Golden West Financial Corp. ........................... 169,088
3,000 GreenPoint Financial Corp. ............................ 92,062
330 Washington Federal, Inc. .............................. 7,425
7,575 Washington Mutual, Inc. ............................... 303,000
-----------
787,230
-----------
SERVICES - MANAGEMENT CONSULTING--0.3%
3,900 Comdisco, Inc. ........................................ 46,800
-----------
TELECOMMUNICATIONS--14.2%
4,100 ALLTEL Corp. .......................................... 245,488
3,171 AT&T Corp. ............................................ 260,418
8,726 Bell Atlantic Corp. ................................... 501,200
7,400 BellSouth Corp. ....................................... 342,250
9,000 SBC Communications Inc. ............................... 475,875
5,500 US WEST, Inc. ......................................... 293,219
-----------
2,118,450
-----------
TOBACCO--0.3%
1,800 Universal Corp.-VA .................................... 48,938
-----------
TRANSPORTATION--0.5%
2,200 GATX Corp. ............................................ 76,038
100 Union Pacific Corp. ................................... 4,688
-----------
80,726
-----------
UTILITIES--2.5%
4,800 Allegheny Energy, Inc. ................................ 142,500
6,400 PECO Energy Co. ....................................... 226,800
-----------
369,300
-----------
WASTE MANAGEMENT--0.3%
1,600 Browning-Ferris Industries, Inc. ...................... 50,400
-----------
WHOLESALE - DRUG DISTRIBUTION--0.2%
400 AmeriSource Health Corp., Class A* .................... 29,850
-----------
WHOLESALE - GROCERIES & GENERAL LINE--1.1%
6,700 SUPERVALU INC. ........................................ 161,219
-----------
Total Common Stocks
(Cost $14,712,367) .................................. 14,303,807
-----------
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
LARGER CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (000's) (NOTE 1)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--4.9%
REPURCHASE AGREEMENT--4.9%
$736 Bear, Stearns & Co ., Inc.
(Agreement dated 02/26/99 to be
repurchased at $736,671)
4.77%, 03/01/99
(Cost $736,379) (Note 6) ........................... $ 736,379
-----------
Total Investments -- 100.8%
(Cost $15,448,746) ................................. 15,040,186
-----------
Liabilities in Excess of
Other Assets -- (0.8%) ............................. (124,871)
-----------
Net Assets -- 100.0% ................................. $14,915,315
===========
- ----------
* Non-income producing.
** Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS--91.9%
AEROSPACE--1.1%
2,850 Cordant Technologies Inc. ............................. $ 110,972
-----------
AIRLINES--0.5%
2,900 America West Holdings Corp.* .......................... 49,300
-----------
AMUSEMENT & RECREATIONAL SERVICES--1.2%
4,300 Polaris Industries Inc. ............................... 121,475
-----------
APPAREL--1.6%
2,500 Kellwood Co. .......................................... 63,906
4,400 Warnaco Group, Inc. (The), Class A .................... 99,000
-----------
162,906
-----------
AUTOMOBILE PARTS & EQUIPMENT--1.1%
700 Borg-Warner Automotive, Inc. .......................... 30,494
5,100 Meritor Automotive, Inc. .............................. 80,962
-----------
111,456
-----------
AUTOMOBILE - RENTALS--0.6%
5,100 Dollar Thrifty Automotive Group, Inc.* ................ 60,562
-----------
AUTOMOBILE SALES & SERVICING--0.1%
1,900 United Auto Group, Inc.* .............................. 14,012
-----------
BANKS--5.1%
6,800 Community First Bankshares, Inc.** .................... 132,600
4,900 Flagstar Bancorp, Inc. ................................ 137,200
3,888 Imperial Bancorp* ..................................... 70,956
6,100 Peoples Heritage Financial Group, Inc. ................ 103,700
1,000 Republic Bancorp, Inc. ................................ 13,750
2,500 Sky Financial Group, Inc.** ........................... 65,625
-----------
523,831
-----------
CHEMICALS - DIVERSIFIED--0.4%
3,100 Octel Corp.* .......................................... 41,656
-----------
CHEMICALS - SPECIALTY--2.0%
1,400 Crompton & Knowles Corp. .............................. 25,900
1,000 Geon Co. (The)** ...................................... 22,812
3,300 NL Industries, Inc.** ................................. 31,969
9,200 W.R. Grace & Co.* ..................................... 123,625
-----------
204,306
-----------
COMMERCIAL SERVICES--0.6%
6,600 Seitel, Inc.* ......................................... 63,112
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMPUTERS, SOFTWARE & SERVICING--1.8%
4,700 BancTec, Inc.*/** ..................................... $ 66,094
400 Bell & Howell Co.* .................................... 13,250
3,300 Symantec Corp.* ....................................... 59,606
2,400 THQ, Inc.* ............................................ 47,700
-----------
186,650
-----------
CONSUMER PRODUCTS--1.6%
400 Chittenden Corp. ...................................... 11,000
5,500 Jostens, Inc.** ....................................... 128,906
1,400 Revlon, Inc., Class A* ................................ 19,775
-----------
159,681
-----------
DISTRIBUTION--0.4%
4,900 TriStar Aerospace Co.*/** ............................. 41,344
-----------
ELECTRICAL EQUIPMENT--3.7%
2,900 C&D Technologies, Inc. ................................ 69,600
1,800 FLIR Systems, Inc.*/** ................................ 33,075
6,600 General Cable Corp. ................................... 124,162
1,900 SBS Technologies, Inc.* ............................... 36,100
2,000 Tecumseh Products Co., Class A ........................ 98,500
1,200 Tektronix, Inc. ....................................... 23,400
-----------
384,837
-----------
ELECTRONIC COMPONENTS--0.6%
1,300 CTS Corp. ............................................. 63,619
-----------
ELECTRONIC COMPONENTS & ACCESSORIES--1.3%
3,100 Cable Design Technologies Corp.* ...................... 40,106
11,800 Pioneer-Standard Electronics, Inc.** .................. 91,450
-----------
131,556
-----------
ENERGY--1.5%
9,200 Avista Corp. .......................................... 150,650
-----------
FINANCIAL SERVICES--7.5%
4,000 American Captial Strategies Ltd. ...................... 69,500
5,000 Doral Financial Corp. ................................. 94,687
5,300 Enhance Financial Services Group, Inc. ................ 125,544
6,100 Federated Investors, Inc., Class B .................... 117,044
800 Freedom Securities Corp. .............................. 12,200
4,600 HUBCO, Inc. ........................................... 150,937
700 Provident Financial Group, Inc. ....................... 27,300
8,100 UniCapital Corp.* ..................................... 47,081
6,300 Waddell & Reed Financial, Inc., Class A ............... 118,912
-----------
763,205
-----------
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
FOOD & AGRICULTURE--4.9%
5,000 Chiquita Brands International, Inc. ................... $ 43,125
3,800 Corn Products International, Inc. ..................... 89,300
5,200 Fleming Companies, Inc. ............................... 38,350
3,100 Fresh Del Monte Produce, Inc.* ........................ 57,156
1,800 International Home Foods, Inc.* ....................... 28,125
5,900 Michael Foods, Inc. ................................... 109,150
3,800 Pilgrim's Pride Corp., Class B ........................ 72,437
2,600 Universal Foods Corp. ................................. 58,987
-----------
496,630
-----------
HEALTHCARE--0.3%
2,000 RehabCare Group, Inc.* ................................ 32,375
-----------
HOTELS--0.6%
5,600 Prime Hospitality Corp.* .............................. 57,400
-----------
INDUSTRIAL MACHINERY--1.5%
3,900 Chart Industries, Inc. ................................ 29,250
3,000 Kennametal, Inc. ...................................... 62,437
2,600 Terex Corp.* .......................................... 66,625
-----------
158,312
-----------
INSURANCE--4.6%
8,700 ARM Financial Group, Inc., Class A** .................. 135,394
1,800 Capital Re Corp. ...................................... 30,150
3,300 CMAC Investment Corp.** ............................... 136,331
3,000 PMI Group, Inc. (The) ................................. 129,375
1,900 Triad Guaranty, Inc.* ................................. 35,150
-----------
466,400
-----------
INSURANCE - LIFE--1.6%
3,500 AmerUs Life Holdings, Inc., Class A** ................. 73,500
4,100 Liberty Financial Companies, Inc.** ................... 91,994
-----------
165,494
-----------
INSURANCE - PROPERTY & CASUALTY--3.0%
2,100 HCC Insurance Holdings, Inc. .......................... 36,487
900 LandAmerica Financial Group, Inc.** ................... 32,344
2,900 Orion Capital Corp. ................................... 95,881
9,100 Reliance Group Holdings, Inc. ......................... 93,844
2,600 Selective Insurance Group, Inc. ....................... 47,369
-----------
305,925
-----------
INSURANCE - TITLE INSURANCE--2.0%
3,200 Chicago Title Corp. ................................... 112,200
4,410 Fidelity National Financial, Inc. ..................... 88,200
-----------
200,400
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--0.6%
2,800 GTECH Holdings Corp.* ................................. $ 63,350
-----------
MACHINERY--1.0%
5,500 United Dominion Industries Ltd. ....................... 106,219
-----------
MANUFACTURING--0.4%
1,300 Esterline Technologies Corp.* .......................... 22,262
600 Lancaster Colony Corp. ................................. 16,500
-----------
38,762
-----------
MEDICAL INSTRUMENTS & SUPPLIES--1.0%
3,800 DENTSPLY International Inc. ............................ 96,900
-----------
METAL FABRICATING--0.8%
4,100 Amcast Industrial Corp. ................................ 77,644
-----------
METALS--0.9%
6,800 ASARCO, Inc. ........................................... 96,050
-----------
MOTORS & GENERATORS--0.1%
700 Regal-Beloit Corp. ..................................... 13,650
-----------
NATURAL GAS DISTRIBUTION--4.1%
3,800 Atmos Energy Corp. ..................................... 91,200
1,000 Eastern Enterprises .................................... 38,437
6,500 Energen Corp. .......................................... 91,000
1,500 K N Energy, Inc. ....................................... 31,406
7,700 WICOR, Inc. ............................................ 162,663
-----------
414,706
-----------
NEWSPAPER PUBLISHING & PRINTING--2.3%
3,200 Central Newspapers, Inc., Class A** .................... 112,000
9,900 Hollinger International Inc.** ......................... 122,513
-----------
234,513
-----------
OFFICE & BUSINESS EQUIPMENT--0.9%
1,800 HON INDUSTRIES Inc. .................................... 42,750
2,900 United Stationers, Inc.* ............................... 53,106
-----------
95,856
-----------
OIL & GAS FIELD EXPLORATION--1.8%
3,400 Cross Timbers Oil Co. .................................. 18,063
5,500 Forest Oil Corp.* ...................................... 35,063
7,500 MCN Energy Group Inc. .................................. 133,594
-----------
186,720
-----------
OIL & GAS TRANSPORT--0.6%
6,900 Offshore Logistics, Inc.* .............................. 60,159
-----------
PAPER--0.3%
1,200 Caraustar Industries, Inc. ............................. 30,750
-----------
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
PLASTICS--1.1%
6,600 Tupperware Corp. ....................................... $ 115,500
-----------
PUMPS & PUMPING EQUIPMENT--1.1%
5,000 Graco, Inc. ............................................ 108,750
-----------
RECYCLING--0.4%
3,600 IMCO Recycling, Inc. ................................... 45,225
-----------
RESIDENTIAL CONSTRUCTION--2.1%
1,800 Beazer Homes USA, Inc.*/** ............................. 39,150
2,100 D.R. Horton, Inc. ...................................... 33,469
6,500 Kaufman and Broad Home Corp. ........................... 146,250
-----------
218,869
-----------
RESTAURANTS--0.6%
4,700 Luby's, Inc. ........................................... 66,681
-----------
RETAIL - JEWELRY STORES--1.3%
5,900 Claire's Stores, Inc. .................................. 130,169
-----------
RETAIL - LUMBER & OTHER BUILDING
MATERIALS DEALERS--1.0%
5,300 Hughes Supply, Inc. .................................... 106,994
-----------
RETAIL - SPECIALTY--1.0%
2,300 Musicland Stores Corp.*/** ............................. 27,169
9,100 Pier 1 Imports, Inc. ................................... 78,488
-----------
105,657
-----------
RETAIL - SPECIALTY APPAREL--2.3%
8,100 Cato Corp. (The), Class A .............................. 76,950
3,500 Ross Stores, Inc. ...................................... 160,125
-----------
237,075
-----------
SAVINGS & LOAN ASSOCIATIONS--2.3%
5,500 Downey Financial Corp. ................................. 111,719
700 FirstFed Financial Corp.* .............................. 11,856
5,170 Washington Federal, Inc. ............................... 116,325
-----------
239,900
-----------
SERVICES - EMPLOYMENT AGENCIES--0.7%
400 CDI Corp.* ............................................. 9,050
9,400 Olsten Corp. ........................................... 58,163
-----------
67,213
-----------
STEEL--1.9%
1,200 Carpenter Technology Corp. ............................. 31,125
6,000 National Steel Corp. ................................... 49,500
8,900 Oregon Steel Mills, Inc. ............................... 85,106
3,800 WHX Corp.* ............................................. 33,013
-----------
198,744
-----------
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT--0.8%
5,100 CellStar Corp.*/** ..................................... $ 58,013
850 Superior TeleCom, Inca. ................................ 24,066
-----------
82,079
-----------
TEXTILES--1.3%
3,300 Burlington Industries, Inc.*/** ........................ 20,419
4,600 Pillowtex Corp. ........................................ 111,550
-----------
131,969
-----------
TOBACCO--1.3%
5,000 Universal Corp.-VA ..................................... 135,938
-----------
TRANSPORTATION--2.8%
5,200 Arkansas Best Corp.* ................................... 39,975
3,800 USFreightways Corp.** .................................. 121,125
6,200 Varlen Corp. ........................................... 130,200
-----------
291,300
-----------
UTILITIES--3.7%
7,000 El Paso Electric Co.*/** ............................... 50,313
1,600 Hawaiian Electric Industries, Inc. ..................... 55,800
8,600 Public Service Co. of New Mexico ....................... 132,225
5,400 Rochester Gas and Electric Corp. ....................... 141,075
-----------
379,413
-----------
WHOLESALE - SPECIALTY EQUIPMENT--0.2%
2,500 CHS Electronics, Inc.* ................................. 17,500
-----------
Total Common Stocks
(Cost $10,191,226) ................................... 9,422,321
-----------
PRINCIPAL
AMOUNT (000's)
- --------------
SHORT-TERM INVESTMENT--7.0%
REPURCHASE AGREEMENT--7.0%
$717 Bear, Stearns & Co., Inc.
(Agreement dated 02/26/99 to be
repurchased at $717,552)
4.77%, 03/01/99
(Cost $717,267) (Note 6) ............................. 717,267
-----------
Total Investments -- 98.9%
(Cost $10,908,493) ................................... 10,139,588
-----------
Other Assets in Excess
of Liabilities -- 1.1% ............................... 110,486
-----------
Net Assets -- 100.0% ................................... $10,250,074
===========
- ----------
* Non-income producing.
** Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MICRO CAP GROWTH GROWTH & VALUE LARGER CAP VALUE SMALL CAP VALUE
FUND FUND FUND FUND FUND
------------ ----------- -------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value (cost - $105,820,198,
$76,076,577, $79,406,630, $15,448,746,
$10,908,493, respectively) .................. $106,721,095 $78,019,073 $77,983,410 $15,040,186 $10,139,588
Cash (Note 1) .................................. 180,000 -- -- -- --
Receivable for investments sold ................ 5,046,579 3,562,999 8,387,847 14,208,736 208,071
Receivable for Fund shares sold ................ 12,558 12,343 39,413 -- 7,488
Dividends and interest receivable .............. 40,031 36,880 77,784 37,335 15,969
Receivable on open futures transactions ........ 13,950 -- -- -- --
Receivable from investment adviser ............. -- -- -- 230 2,465
Prepaid expenses ............................... 18,446 16,244 33,425 -- --
------------ ----------- ----------- ----------- -----------
Total assets ................................. 112,032,659 81,647,539 86,521,879 29,286,487 10,373,581
------------ ----------- ----------- ----------- -----------
LIABILITIES
Payable for Fund shares redeemed ............... 423,731 56,503 6,582,947 13,937,020 --
Payable for investments purchased .............. 2,022,725 3,470,183 1,996,377 379,459 111,161
Accrued expenses and other liabilities ......... 121,696 107,278 93,559 54,693 12,346
------------ ----------- ----------- ----------- -----------
Total liabilities ............................ 2,568,152 3,633,964 8,672,883 14,371,172 123,507
------------ ----------- ----------- ----------- -----------
NET ASSETS
Capital stock, $0.001 par value ................ 7,185 6,409 5,314 1,321 926
Paid-in capital ................................ 101,401,498 86,004,844 82,774,827 16,747,662 10,762,680
Undistributed net investment income/(loss) ..... (269,363) (165,905) 24,098 32,882 27,025
Accumulated net realized gain/(loss) from
investments and futures transactions, if any 7,505,565 (9,774,269) (3,532,023) (1,457,990) 228,348
Net unrealized appreciation/(depreciation) on
investments and futures transactions, if any 819,622 1,942,496 (1,423,220) (408,560) (768,905)
------------ ----------- ----------- ----------- -----------
Net assets applicable to shares outstanding .... $109,464,507 $78,013,575 $77,848,996 $14,915,315 $10,250,074
============ =========== =========== =========== ===========
Shares outstanding ................................ 7,184,447 6,408,806 5,290,775 1,196,511 910,189
------------ ----------- ----------- ----------- -----------
Net asset value, offering and redemption
price per share ................................... $15.24 $12.17 $14.71 $12.47 $11.26
====== ====== ====== ====== ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
MICRO CAP GROWTH GROWTH & VALUE LARGER CAP VALUE SMALL CAP VALUE
FUND FUND FUND FUND FUND*
------------ ----------- -------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends ...................................... $ 84,799** $ 149,058** $ 686,156 $ 273,499 $ 34,719
Interest (Note 5) .............................. 234,403 123,676 107,504 20,282 12,052
----------- ----------- ----------- ----------- ---------
319,202 272,734 793,660 293,781 46,771
----------- ----------- ----------- ----------- ---------
EXPENSES
Advisory fees .................................. 441,424 328,979 433,125 108,408 13,879
Co-Administration fees ......................... 102,999 76,762 101,062 44,727 19,737
Administrative services fees ................... 88,284 65,796 86,625 21,682 2,962
Transfer agent fees and expenses ............... 35,500 33,655 55,754 20,345 10,400
Printing ....................................... 20,192 17,418 13,128 1,645 1,643
Custodian fees and expenses .................... 17,657 13,159 17,325 4,336 592
Audit and legal fees ........................... 12,092 11,529 12,736 6,321 2,100
Federal and state registration fees ............ 6,459 7,659 2,927 14,120 5,260
Other .......................................... 6,974 5,493 4,555 3,866 1,679
----------- ----------- ----------- ----------- ---------
Total expenses before waivers and
reimbursements ........................... 731,581 560,450 727,237 225,450 58,252
Less: waivers and reimbursements ............ (143,016) (121,811) (149,737) (80,906) (38,506)
----------- ----------- ----------- ----------- ---------
Total expenses after waivers and
reimbursements ........................... 588,565 438,639 577,500 144,544 19,746
----------- ----------- ----------- ----------- ---------
Net investment income/(loss) ................... (269,363) (165,905) 216,160 149,237 27,025
----------- ----------- ----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS AND FUTURES TRANSACTIONS:
Net realized gain/(loss) from:
Investments ................................. 7,043,170 (7,455,631) (3,165,316) (1,328,014) 228,348
Futures transactions ........................ 358,045 -- -- -- --
Net change in unrealized depreciation on:
Investments ................................. 23,667,594 26,616,560 28,618,795 5,902,312 (768,905)
Futures transactions ........................ 501,675 -- -- -- --
----------- ----------- ----------- ----------- ---------
Net realized and unrealized gain/(loss) on
investments and futures transactions ........ 31,570,484 19,160,929 25,453,479 4,574,298 (540,557)
----------- ----------- ----------- ----------- ---------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ................................ $31,301,121 $18,995,024 $25,669,639 $ 4,723,535 $(513,532)
=========== =========== =========== =========== =========
<FN>
- ----------
* Commenced operations on November 30, 1998.
** Net of foreign withholding taxes of $167 and $41, respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MICRO CAP
FUND
-----------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FISCAL
FEBRUARY 28, 1999 YEAR ENDED
(UNAUDITED) AUGUST 31, 1998
----------------- ---------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income/(loss) .................................................. $ (269,363) $ (572,389)
Net realized gain/(loss) from investments and futures transactions, if any .... 7,401,215 19,400,519
Net change in unrealized appreciation/(depreciation) on investments and
futures transactions, if any ............................................... 24,169,269 (44,713,083)
------------ ------------
Net increase/(decrease) in net assets resulting from operations ............... 31,301,121 (25,884,953)
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ......................................................... -- --
Net realized capital gains .................................................... (7,942,123) (19,435,152)
------------ ------------
Total dividends and distributions to shareholders ............................. (7,942,123) (19,435,152)
------------ ------------
INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS (NOTE 4) ........................................... (13,160,924) 2,467,039
------------ ------------
Total increase/(decrease) in net assets ....................................... 10,198,074 (42,853,066)
NET ASSETS
Beginning of period ........................................................... 99,266,433 142,119,499
------------ ------------
End of period ................................................................. $109,464,507 $ 99,266,433
============ ============
<CAPTION>
GROWTH
FUND
-----------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FISCAL
FEBRUARY 28, 1999 YEAR ENDED
(UNAUDITED) AUGUST 31, 1998
----------------- ---------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income/(loss) .................................................. $ (165,905) $ (605,792)
Net realized gain/(loss) from investments and futures transactions, if any .... (7,455,631) 7,631,010
Net change in unrealized appreciation/(depreciation) on investments and
futures transactions, if any ............................................... 26,616,560 (39,943,640)
------------ ------------
Net increase/(decrease) in net assets resulting from operations ............... 18,995,024 (32,918,422)
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ......................................................... -- --
Net realized capital gains .................................................... (39,086) (19,099,345)
------------ ------------
Total dividends and distributions to shareholders ............................. (39,086) (19,099,345)
------------ ------------
INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS (NOTE 4) ........................................... (18,781,907) 12,133,413
------------ ------------
Total increase/(decrease) in net assets ....................................... 174,031 (39,884,354)
NET ASSETS
Beginning of period ........................................................... 77,839,544 117,723,898
------------ ------------
End of period ................................................................. $ 78,013,575 $ 77,839,544
============ ============
<CAPTION>
GROWTH & VALUE
FUND
-------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FISCAL
FEBRUARY 28, 1999 YEAR ENDED
(UNAUDITED) AUGUST 31, 1998
----------------- ---------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income/(loss) .................................................. $ 216,160 $ 389,134
Net realized gain/(loss) from investments and futures transactions, if any .... (3,165,316) 15,859,151
Net change in unrealized appreciation/(depreciation) on investments and
futures transactions, if any ............................................... 28,618,795 (33,971,552)
------------ ------------
Net increase/(decrease) in net assets resulting from operations ............... 25,669,639 (17,723,267)
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ......................................................... (497,210) (237,074)
Net realized capital gains .................................................... (10,970,699) (10,728,727)
------------ ------------
Total dividends and distributions to shareholders ............................. (11,467,909) (10,965,801)
------------ ------------
INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS (NOTE 4) ........................................... (46,528,930) 86,374,444
------------ ------------
Total increase/(decrease) in net assets ....................................... (32,327,200) 57,685,376
NET ASSETS
Beginning of period ........................................................... 110,176,196 52,490,820
------------ ------------
End of period ................................................................. $ 77,848,996(a) $110,176,196(b)
============ ============
<CAPTION>
LARGER CAP VALUE
FUND
-------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS ENDED DECEMBER 9, 1997*
FEBRUARY 28, 1999 THROUGH
(UNAUDITED) AUGUST 31, 1998
----------------- -----------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income/(loss) .................................................. $ 149,237 $ 137,375
Net realized gain/(loss) from investments and futures transactions, if any .... (1,328,014) 412,725
Net change in unrealized appreciation/(depreciation) on investments and
futures transactions, if any ............................................... 5,902,312 (6,310,872)
----------- -----------
Net increase/(decrease) in net assets resulting from operations ............... 4,723,535 (5,760,772)
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ......................................................... (253,730) --
Net realized capital gains .................................................... (542,701) --
----------- -----------
Total dividends and distributions to shareholders ............................. (796,431) --
----------- -----------
INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS (NOTE 4) ........................................... (14,268,340) 31,017,323
----------- -----------
Total increase/(decrease) in net assets ....................................... (10,341,236) 25,256,551
NET ASSETS
Beginning of period ........................................................... 25,256,551 --
----------- -----------
End of period ................................................................. $14,915,315(c) $25,256,551(d)
=========== ===========
<CAPTION>
SMALL CAP VALUE
FUND
------------------
FOR THE PERIOD
NOVEMBER 30, 1998*
THROUGH
FEBRUARY 28, 1999
(UNAUDITED)
------------------
<S> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income/(loss) .................................................. $ 27,025
Net realized gain/(loss) from investments and futures transactions, if any .... 228,348
Net change in unrealized appreciation/(depreciation) on investments and
futures transactions, if any ............................................... (768,905)
-----------
Net increase/(decrease) in net assets resulting from operations ............... (513,532)
-----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ......................................................... --
Net realized capital gains .................................................... --
-----------
Total dividends and distributions to shareholders ............................. --
-----------
INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS (NOTE 4) ........................................... 10,763,606
-----------
Total increase/(decrease) in net assets ....................................... 10,250,074
NET ASSETS
Beginning of period ........................................................... --
-----------
End of period ................................................................. $10,250,074(e)
===========
<FN>
- ----------
* Commencement of operations.
(a) Includes undistributed net investment income of $24,098.
(b) Includes undistributed net investment income of $305,148.
(c) Includes undistributed net investment income of $32,882.
(d) Includes undistributed net investment income of $137,375.
(e) Includes undistributed net investment income of $27,025.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
28&29
<PAGE>
N/I NUMERIC INVESTORS
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
supplemental data for the respective periods. This information has been derived
from information provided in the financial statements.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MICRO CAP FUND
-------------------------------------------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS ENDED FOR THE FISCAL FOR THE FISCAL JUNE 3, 1996*
FEBRUARY 28, 1999 YEAR ENDED YEAR ENDED THROUGH
(UNAUDITED) AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996
----------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ..................... $ 12.52 $ 18.47 $ 11.67 $ 12.00
-------- ------- -------- -------
Net investment income/(loss)(1) .......................... (0.04) (0.07) (0.01) 0.01
Net realized and unrealized gain/(loss) on investments and
futures transactions, if any(2) ....................... 3.79 (3.23) 6.82 (0.34)
-------- ------- -------- -------
Net increase/(decrease) in net assets
resulting from operations ............................. 3.75 (3.30) 6.81 (0.33)
-------- ------- -------- -------
Dividends and distributions to shareholders from:
Net investment income .................................... -- -- (0.01) --
Net realized capital gains ............................... (1.03) (2.65) -- --
-------- ------- -------- -------
Total dividends and distributions to shareholders ........ (1.03) (2.65) (0.01) --
-------- ------- -------- -------
Net asset value, end of period ........................... $ 15.24 $ 12.52 $ 18.47 $ 11.67
======== ======= ======== =======
Total investment return(3) ............................... 31.94% (20.74)% 58.41% (2.75)%
======== ======= ======== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $109,465 $99,266 $142,119 $14,100
Ratio of expenses to average net assets(1) ............... 1.00%(4) 1.00% 1.00% 1.00%(4)
Ratio of expenses to average net assets without waivers and
expense reimbursements ................................ 1.24%(4) 1.23% 1.45% 3.45%(4)
Ratio of net investment income/(loss) to average net assets(1) (0.46)%(4) (0.41)% (0.06)% 0.73%(4)
Portfolio turnover rate .................................. 161.89% 408.70% 233.49% 42.92%
<CAPTION>
GROWTH FUND
----------------------------------------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS ENDED FOR THE FISCAL FOR THE FISCAL JUNE 3, 1996*
FEBRUARY 28, 1999 YEAR ENDED YEAR ENDED THROUGH
(UNAUDITED) AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996
----------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ..................... $ 9.75 $ 16.29 $ 11.84 $ 12.00
------- ------- -------- -------
Net investment income/(loss)(1) .......................... (0.03) (0.07) (0.04) 0.01
Net realized and unrealized gain/(loss) on investments and
futures transactions, if any(2) ....................... 2.46 (3.98) 4.50 (0.17)
------ ------- -------- -------
Net increase/(decrease) in net assets
resulting from operations ............................. 2.43 (4.05) 4.46 (0.16)
------ ------- -------- -------
Dividends and distributions to shareholders from:
Net investment income .................................... -- -- (0.01) --
Net realized capital gains ............................... (0.01) (2.49) -- --
------ ------- -------- -------
Total dividends and distributions to shareholders ........ (0.01) (2.49) (0.01) --
------ ------- -------- -------
Net asset value, end of period ........................... $ 12.17 $ 9.75 $ 16.29 $ 11.84
======= ======= ======== =======
Total investment return(3) ............................... 24.88% (29.03)% 37.69% (1.33)%
======= ======= ======== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $78,014 $77,840 $117,724 $26,756
Ratio of expenses to average net assets(1) ............... 1.00%(4) 1.00% 1.00% 1.00%(4)
Ratio of expenses to average net assets without waivers and
expense reimbursements ................................ 1.28%(4) 1.24% 1.40% 2.62%(4)
Ratio of net investment income/(loss) to average net assets(1) (0.38)%(4) (0.50)% (0.38)% 0.71%(4)
Portfolio turnover rate .................................. 158.91% 338.40% 266.25% 19.21%
<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 a share outstanding throughout the respective periods
are not in accord with the changes in the aggregate gains and losses in
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) Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
30&31
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for each share
outstanding, total investment return, ratios to average net assets and other
supplemental data for the respective periods. This information has been derived
from information provided in the financial statements.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & VALUE FUND
----------------------------------------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS ENDED FOR THE FISCAL FOR THE FISCAL JUNE 3, 1996*
FEBRUARY 28, 1999 YEAR ENDED YEAR ENDED THROUGH
(UNAUDITED) AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996
----------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ......................... $ 13.30 $ 17.16 $ 11.56 $12.00
------- -------- ------- ------
Net investment income/(loss)(1) .............................. 0.03 0.05 0.08 0.03
Net realized and unrealized gain/(loss) on investments and
futures transactions, if any(2) ........................... 2.81 (1.24) 5.58 (0.47)
------- -------- ------- ------
Net increase/(decrease) in net assets resulting from operations 2.84 (1.19) 5.66 (0.44)
------- -------- ------- ------
Dividends and distributions to shareholders from:
Net investment income ........................................ (0.06) (0.06) (0.06) --
Net realized capital gains ................................... (1.37) (2.61) -- --
------- -------- ------- ------
Total dividends and distributions to shareholders ............ (1.43) (2.67) (0.06) --
------- -------- ------- ------
Net asset value, end of period ............................... $ 14.71 $ 13.30 $ 17.16 $11.56
======= ======== ======= ======
Total investment return(3) ................................... 23.34% (8.97)% 49.11% (3.67)%
======= ======== ======= ======
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .................... $77,849 $110,176 $52,491 $3,813
Ratio of expenses to average net assets(1) ................... 1.00%(4) 1.00% 1.00% 1.00%(4)
Ratio of expenses to average net assets without waivers and
expense reimbursements .................................... 1.26%(4) 1.26% 1.81% 8.98%(4)
Ratio of net investment income/(loss) to average net assets(1) 0.37%(4) 0.36% 0.79% 1.89%(4)
Portfolio turnover rate ...................................... 183.03% 341.73% 263.83% 5.25%
<CAPTION>
LARGER CAP VALUE FUND SMALL CAP VALUE FUND
------------------------------------ --------------------
FOR THE PERIOD
FOR THE FOR THE PERIOD NOVEMBER 30, 1998*
SIX MONTHS ENDED DECEMBER 9, 1997* THROUGH
FEBRUARY 28, 1999 THROUGH FEBRUARY 28, 1999
(UNAUDITED) AUGUST 31, 1998 (UNAUDITED)
----------------- ----------------- -----------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ......................... $ 10.84 $ 12.00 $ 12.00
------- ------- -------
Net investment income/(loss)(1) .............................. 0.08 0.06 0.03
Net realized and unrealized gain/(loss) on investments and
futures transactions, if any(2) ........................... 1.89 (1.22) (0.77)
------- ------- -------
Net increase/(decrease) in net assets resulting from operations 1.97 (1.16) (0.74)
------- ------- -------
Dividends and distributions to shareholders from:
Net investment income ........................................ (0.11) -- --
Net realized capital gains ................................... (0.23) -- --
------- ------- -------
Total dividends and distributions to shareholders ............ (0.34) -- --
------- ------- -------
Net asset value, end of period ............................... $ 12.47 $ 10.84 $ 11.26
======= ======= =======
Total investment return(3) ................................... 18.42% (9.67)% (6.17)%
======= ======= =======
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .................... $14,915 $25,257 $10,250
Ratio of expenses to average net assets(1) ................... 1.00%(4) 1.00%(4) 1.00%(4)
Ratio of expenses to average net assets without waivers and
expense reimbursements .................................... 1.56%(4) 2.20%(4) 2.95%(4)
Ratio of net investment income/(loss) to average net assets(1) 1.03%(4) 1.26%(4) 1.37%(4)
Portfolio turnover rate ...................................... 165.09% 166.81% 66.28%
<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 a share outstanding throughout the respective periods
are not in accord with the changes in the aggregate gains and losses in
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) Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
32&33
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
SMALL 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 sixteen investment portfolios, including the
N/I NUMERIC INVESTORS FAMILY OF FUNDS ("n/i numeric investors Family") which
consists of five 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"), N/I NUMERIC
INVESTORS Larger Cap Value Fund ("Larger Cap Value Fund") and N/I NUMERIC
INVESTORS Small Cap Value Fund ("Small Cap Value Fund") (each a "Fund",
collectively the "Funds").
RBB has authorized capital of thirty billion shares of common stock of which
19.83 billion are currently classified into ninety-seven classes. Each class
represents an interest in one of sixteen investment portfolios of RBB. The
classes have been grouped into fifteen separate "families", nine 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.(R) (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.
34
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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.
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 management 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 predict correctly
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, 1999, Micro Cap Fund held 20 Russell 2000 Growth Index
futures contracts expiring on March 18, 1999. The value of such contracts on
February 28, 1999 was $3,933,500 thereby resulting in an unrealized loss of
$81,275. The Micro Cap Fund has deposited $180,000 in a segregated account, as a
margin deposit for the futures transactions. The margin deposit is included
under the caption CASH in the Statement of Assets and Liabilities.
The Funds had no other futures transactions for the period ended February 28,
1999.
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.
35
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 February 28, 1999
(unless otherwise indicated), investment advisory fees, waivers and
reimbursements of expenses were as follows:
<TABLE>
<CAPTION>
GROSS NET EXPENSE
FUND ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT
- ---- ------------- --------- ------------- -------------
<S> <C> <C> <C> <C>
Micro Cap Fund ......... $441,424 $(60,617) $380,807 --
Growth Fund ............ 328,979 (60,402) 268,577 --
Growth & Value Fund .... 433,125 (74,662) 358,463 --
Larger Cap Value Fund .. 108,408 (35,811) 72,597 --
Small Cap Value Fund* .. 13,879 (13,879) -- $8,382
<FN>
- -----------
*Commenced operations on November 30, 1998.
</FN>
</TABLE>
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, 1999 (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:
<TABLE>
<CAPTION>
PFPC GROSS PFPC PFPC NET
FUND CO-ADMINISTRATION FEES WAIVERS CO-ADMINISTRATION FEES
- ---- ---------------------- ------- ----------------------
<S> <C> <C> <C>
Micro Cap Fund ........................ $73,571 $ (5,886) $67,685
Growth Fund ........................... 54,830 (4,386) 50,444
Growth & Value Fund ................... 72,187 (5,775) 66,412
Larger Cap Value Fund ................. 37,499 (18,750) 18,749
Small Cap Value Fund* ................. 18,750 (9,375) 9,375
<FN>
- ----------
* Commenced operations on November 30, 1998.
</FN>
</TABLE>
36
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 Larger Cap Value Fund and Small Cap Value Fund. For the six
months ended February 28, 1999 (unless otherwise indicated), transfer agency
fees and waivers were as follows:
<TABLE>
<CAPTION>
GROSS NET
TRANSFER AGENCY TRANSFER AGENCY
FUND FEES WAIVERS FEES
- ---- --------------- -------- ---------------
<S> <C> <C> <C>
Micro Cap Fund ........................ $35,500 -- $35,500
Growth Fund ........................... 33,655 -- 33,655
Growth & Value Fund ................... 55,754 -- 55,754
Larger Cap Value Fund ................. 20,345 $(9,000) 11,345
Small Cap Value Fund* ................. 10,400 (4,500) 5,900
<FN>
- ----------
* Commenced operations on November 30, 1998.
</FN>
</TABLE>
Provident Distributors, Inc. ("PDI") provides certain administrative services to
each Fund. As compensation for such administrative services, PDI 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, 1999 (unless otherwise indicated), PDI
has, at its discretion, voluntarily agreed to waive a portion of its
administrative services fees for each Fund. For the six months ended February
28, 1999, (unless otherwise indicated) administrative services fees and waivers
were as follows:
<TABLE>
<CAPTION>
GROSS
ADMINISTRATIVE NET ADMINISTRATIVE
FUND SERVICES FEES WAIVERS SERVICES FEES
- ---- -------------- --------- ------------------
<S> <C> <C> <C>
Micro Cap Fund ........................ $88,284 $(76,513) $11,771
Growth Fund ........................... 65,796 (57,023) 8,773
Growth & Value Fund ................... 86,625 (69,300) 17,325
Larger Cap Value Fund ................. 21,682 (17,345) 4,337
Small Cap Value Fund * ................ 2,962 (2,370) 592
<FN>
- ----------
* Commenced operations on November 30, 1998.
</FN>
</TABLE>
These fees are computed daily and paid monthly.
37
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the costs of securities owned at February
28, 1999 were $106,220,875, $76,647,798, $81,698,915, $15,867,552 and
$10,955,329 for Micro Cap Fund, Growth Fund, Growth & Value Fund, Larger Cap
Value Fund and Small Cap Value Fund, respectively. Accordingly, the net
unrealized appreciation/(depreciation) on investments were as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET APPRECIATION/
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
- ---- ------------ ------------ ----------------
<S> <C> <C> <C>
Micro Cap Fund ........................ $8,969,717 $(8,469,497) $ 500,220
Growth Fund ........................... 7,632,275 (6,261,000) 1,371,275
Growth & Value Fund ................... 4,076,477 (7,791,982) (3,715,505)
Larger Cap Value Fund ................. 478,262 (1,305,628) (827,366)
Small Cap Value Fund .................. 204,194 (1,019,935) (815,741)
</TABLE>
For the six months ended February 28, 1999 (unless otherwise indicated),
aggregate purchases and sales of investment securities (excluding short-term
investments) were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ---- ------------ ------------
<S> <C> <C>
Micro Cap Fund ........................................... $176,627,939 $195,227,361
Growth Fund .............................................. 132,413,284 150,938,109
Growth & Value Fund ...................................... 201,623,909 256,770,911
Larger Cap Value Fund .................................... 42,968,990 57,276,322
Small Cap Value Fund* .................................... 14,682,473 4,719,595
<FN>
- -----------
* Commenced operations on November 30, 1998.
</FN>
</TABLE>
4. CAPITAL SHARE TRANSACTIONS
As of February 28, 1999 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:
<TABLE>
<CAPTION>
MICRO CAP FUND
-------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
FEBRUARY 28, 1999 FISCAL YEAR ENDED
(UNAUDITED) AUGUST 31, 1998
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales ................................. 197,323 $ 2,934,395 1,392,858 $ 25,611,592
Repurchases ........................... (1,580,902) (23,876,699) (2,358,739) (41,957,147)
Reinvestments ......................... 636,739 7,781,380 1,202,851 18,812,594
---------- ------------ ---------- ------------
Net increase/(decrease) ............... (746,840) $(13,160,924) 236,970 $ 2,467,039
========== ============ ========== ============
</TABLE>
38
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
GROWTH FUND
-------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
FEBRUARY 28, 1999 FISCAL YEAR ENDED
(UNAUDITED) AUGUST 31, 1998
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales ................................. 609,064 $ 6,824,684 1,479,501 $ 22,184,785
Repurchases ........................... (2,184,751) (25,643,705) (2,118,359) (28,742,059)
Reinvestments ......................... 3,862 37,114 1,392,749 18,690,687
---------- ------------ ---------- ------------
Net increase/(decrease) ............... (1,571,825) $(18,781,907) 753,891 $ 12,133,413
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
GROWTH & VALUE FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
FEBRUARY 28, 1999 FISCAL YEAR ENDED
(UNAUDITED) AUGUST 31, 1998
-------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Sales ................................. 644,513 $ 9,147,928 6,593,529 $109,780,075
Repurchases ........................... (4,538,553) (66,829,874) (2,051,495) (33,888,666)
Reinvestments ......................... 897,920 11,153,016 685,614 10,483,035
---------- ------------ ---------- ------------
Net increase/(decrease) ............... (2,996,120) $(46,528,930) 5,227,648 $ 86,374,444
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
LARGER CAP VALUE FUND
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE PERIOD
FEBRUARY 28, 1999 DECEMBER 9, 1997*
(UNAUDITED) THROUGH AUGUST 31, 1998
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Sales ................................. 201,636 $ 2,434,703 2,499,708 $33,270,205
Repurchases ........................... (1,403,705) (17,489,656) (169,292) (2,252,882)
Reinvestments ......................... 68,164 786,613 -- --
---------- ------------ --------- -----------
Net increase/(decrease) ............... (1,133,905) $(14,268,340) 2,330,416 $31,017,323
========== ============ ========= ===========
<FN>
- -----------
* Commencement of operations.
</FN>
</TABLE>
39
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND
--------------------------
FOR THE PERIOD
NOVEMBER 30, 1998* THROUGH
FEBRUARY 28, 1999
(UNAUDITED)
--------------------------
SHARES AMOUNT
------- -----------
<S> <C> <C>
Sales ................................. 937,406 $11,077,953
Repurchases ........................... (27,217) (314,347)
------- -----------
Net increase .......................... 910,189 $10,763,606
======= ===========
<FN>
- -----------
* Commencement of operations.
</FN>
</TABLE>
5. SECURITIES LENDING
Loans of securities are required at all times to be secured by collateral at
least equal to 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
securities 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 securities collateral (represented by U.S. Treasury
Obligations) and indemnification received at February 28, 1999, was as follows:
<TABLE>
<CAPTION>
VALUE OF SECURITIES VALUE OF COLLATERAL
FUND ON LOAN AND INDEMNIFICATION
- ---- ------------------- -------------------
<S> <C> <C>
Micro Cap Fund ........................ $16,612,251 $16,940,414
Growth Fund ........................... 4,874,453 4,972,455
Growth & Value Fund ................... 7,118,514 7,265,639
Larger Cap Value Fund ................. 851,152 871,224
Small Cap Value Fund .................. 858,485 880,746
</TABLE>
For the six months ended February 28, 1999, income from securities lending was
$34,444, $24,827, $18,255 and $2,088 for Micro Cap Fund, Growth Fund, Growth &
Value Fund and Larger Cap Value Fund, respectively. During the period from
November 30, 1998 (commencement of operations) through February 28, 1999, income
from securities lending was $432 for Small Cap Value Fund. Such income from
securities lending is included under the caption Interest in the Statement of
Operations.
40
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
GROWTH & VALUE FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
6. COLLATERAL FOR REPURCHASE AGREEMENTS
Listed below is the collateral associated with each repurchase agreement with
Bear, Stearns & Co. Inc., outstanding at February 28, 1999:
<TABLE>
<CAPTION>
MICRO CAP FUND
-------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST VALUE
- ------ --------- -------- ------------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C>
United States Treasury Note ................. 6,585 05/15/99 6.375% $6,605,545 $120,604 $6,726,149
========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
GROWTH FUND
-------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST VALUE
- ------ --------- -------- ------------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C>
United States Treasury Note ................. 2,745 08/15/99 8.000% $2,784,006 $ 7,280 $2,791,286
========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
GROWTH & VALUE FUND
-------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST VALUE
- ------ --------- -------- ------------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C>
United States Treasury Bill ................. 480 05/27/99 -- $ 474,538 -- $ 474,538
United States Treasury Note ................. 1,345 08/15/99 8.000% 1,364,112 $ 3,567 1,367,679
----------- ------- ----------
Total .................................... $1,838,650 $ 3,567 $1,842,217
========== ======= ==========
</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>
United States Treasury Bill ................. 445 04/29/99 -- $ 441,467 -- $ 441,467
United States Treasury Bill ................. 315 05/27/99 -- 311,415 -- 311,415
---------- -------- ----------
Total .................................... $ 752,882 -- $ 752,882
========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND
--------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST VALUE
- ------ --------- -------- ------------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C> <C>
United States Treasury Bill ................. 100 04/01/99 -- $ 99,582 -- $ 99,582
United States Treasury Bill ................. 280 04/29/99 -- 277,777 -- 277,777
United States Treasury Bill ................. 360 05/20/99 -- 356,242 -- 356,242
---------- -------- ----------
Total .................................... $ 733,601 -- $ 733,601
========== ======== ==========
</TABLE>
41
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
42
<PAGE>
N/I NUMERIC INVESTORS
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.(R)
One Memorial Drive
Cambridge, MA 02142
CO-ADMINISTRATORS
Bear Stearns Funds Management Inc.
575 Lexington Avenue
New York, NY 10022
PFPC Inc.
Bellevue Corporate Center
400 Bellevue Parkway
Wilmington, DE 19809
DISTRIBUTOR
Provident Distributors,Inc.
Four Falls Corporate Center, 6th Floor
West Conshohocken, PA 19428
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
PricewaterhouseCoopers LLP
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 the independent accountants 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 total 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.
43
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS
[GRAPHIC OMITTED]
One Memorial Drive
Cambridge, MA 02142
1-800-numeric [686-3742]
http://www.numeric.com
