BOGLE
INVESTMENT
MANAGEMENT
SMALL CAP
GROWTH FUND
SEMI-ANNUAL REPORT
FEBRUARY 29, 2000
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
PORTFOLIO MANAGER'S LETTER
"SEMI-ANNUAL ADVISER'S REPORT"
Dear Investor,
What a great time to launch a small cap growth fund! Small capitalization
stocks attracted investor interest late last year after approximately five years
of significant underperformance relative to large capitalization stocks. For the
five years ended September 30, 1999, the large cap-dominated S&P500 returned
25.0% per year while the Russell 2000, an index of smaller cap stocks, advanced
at half this pace, 12.4% per year. However, since October, the rotation to small
cap stocks has been fast and furious, fueled largely by investor enthusiasm for
the most speculative of these small stocks. From October 1, 1999, the date of
the initial offering of the fund, through February 29, 2000, the Russell 2000
advanced 35.8% while the S&P500 gained 7.1%.
Furthermore, small cap growth stocks have significantly outperformed small
cap value stocks over this time frame and thus the range of returns among small
cap stocks has been extremely wide. For example, small cap growth stocks, as
measured by the Russell 2000 Growth Index, were up 62.9% while the Russell 2000
Value Index was up just 4.9% from October 1, 1999 through February 29, 2000.
Finally, we believe we are also witnessing a tremendous and, in fact,
unprecedented divergence between cap-weighted and equal-weighted small cap
indices (see graph below).
[GRAPHIC OMITTED]
DIFFERENCE BETWEEN CAP-WEIGHTED AND EQUAL-WEIGHTED RUSSELL 2000 INDEX
ROLLING SIX-MONTH RETURNS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
6/30/79 (2.78)%
7/31/79 2.60
8/31/79 4.00
9/30/79 (5.60)
10/31/79 0.06
11/30/79 0.06
12/31/79 (0.89)
1/31/80 (3.72)
2/28/80 (3.15)
3/31/80 (3.45)
4/30/80 (4.04)
5/31/80 (3.51)
6/30/80 (2.48)
7/31/80 (0.99)
8/31/80 (2.15)
9/30/80 (1.46)
10/31/80 (2.37)
11/30/80 (2.09)
12/31/80 (3.04)
1/31/81 (3.30)
2/28/81 (1.39)
3/31/81 (1.37)
4/30/81 (1.95)
5/31/81 (2.52)
6/30/81 (4.06)
7/31/81 (3.52)
8/31/81 (3.08)
9/30/81 (1.54)
10/31/81 (1.18)
11/30/81 (0.78)
12/31/81 1.02
1/31/82 0.26
2/28/82 (0.18)
3/31/82 (0.72)
4/30/82 (0.27)
5/31/82 (1.49)
6/30/82 (1.12)
7/31/82 0.19
8/31/82 1.09
9/30/82 1.29
10/31/82 1.32
11/30/82 1.92
12/31/82 0.40
1/31/83 (3.78)
2/28/83 (3.21)
3/31/83 (5.95)
4/30/83 (5.75)
5/31/83 (7.14)
6/30/83 (6.17)
7/31/83 (2.57)
8/31/83 (3.50)
9/30/83 (0.60)
10/31/83 (0.31)
11/30/83 1.49
12/31/83 1.98
1/31/84 1.46
2/29/84 1.63
3/31/84 0.54
4/30/84 1.25
5/31/84 0.94
6/30/84 0.47
7/31/84 1.17
8/31/84 0.71
9/30/84 0.64
10/31/84 0.32
11/30/84 0.80
12/31/84 1.34
1/31/85 0.39
2/28/85 (0.36)
3/31/85 (0.57)
4/30/85 (1.29)
5/31/85 (1.31)
6/30/85 (1.17)
7/31/85 (0.10)
8/31/85 0.34
9/30/85 0.70
10/31/85 1.63
11/30/85 1.94
12/31/85 1.47
1/31/86 0.56
2/28/86 1.27
3/31/86 1.20
4/30/86 0.43
5/31/86 (0.58)
6/30/86 (0.67)
7/31/86 (0.12)
8/31/86 0.66
9/30/86 0.64
10/31/86 1.21
11/30/86 1.26
12/31/86 1.31
1/31/87 2.71
2/28/87 1.69
3/31/87 1.56
4/30/87 0.26
5/31/87 (0.01)
6/30/87 0.28
7/31/87 (0.49)
8/31/87 0.26
9/30/87 0.00
10/31/87 (0.12)
11/30/87 0.32
12/31/87 0.49
1/31/88 (0.87)
2/29/88 (1.48)
3/31/88 (1.81)
4/30/88 (2.07)
5/31/88 (2.90)
6/30/88 (3.28)
7/31/88 (0.93)
8/31/88 (0.93)
9/30/88 (0.12)
10/31/88 0.06
11/30/88 (0.36)
12/31/88 (0.77)
1/31/89 (0.80)
2/28/89 (0.67)
3/31/89 (1.16)
4/30/89 (0.59)
5/31/89 0.40
6/30/89 0.15
7/31/89 0.44
8/31/89 0.04
9/30/89 0.66
10/31/89 0.05
11/30/89 0.48
12/31/89 2.10
1/31/90 (0.39)
2/28/90 1.20
3/31/90 1.60
4/30/90 1.46
5/31/90 1.79
6/30/90 0.52
7/31/90 2.85
8/31/90 1.83
9/30/90 1.73
10/31/90 2.29
11/30/90 2.67
12/31/90 4.76
1/31/91 4.05
2/28/91 1.24
3/31/91 (0.91)
4/30/91 (4.05)
5/31/91 (4.03)
6/30/91 (7.51)
7/31/91 (4.58)
8/31/91 (0.43)
9/30/91 0.95
10/31/91 2.96
11/30/91 0.59
12/31/91 3.52
1/31/92 (3.25)
2/29/92 (4.88)
3/31/92 (5.73)
4/30/92 (5.45)
5/31/92 (4.00)
6/30/92 (4.85)
7/31/92 (1.15)
8/31/92 1.88
9/30/92 3.10
10/31/92 2.77
11/30/92 0.54
12/31/92 (0.47)
1/31/93 (1.79)
2/28/93 (1.29)
3/31/93 (0.98)
4/30/93 (0.38)
5/31/93 1.31
6/30/93 2.24
7/31/93 2.72
8/31/93 2.51
9/30/93 2.20
10/31/93 0.55
11/30/93 (0.05)
12/31/93 (0.03)
1/31/94 (0.08)
2/28/94 (0.64)
3/31/94 (1.33)
4/30/94 0.79
5/31/94 0.72
6/30/94 (0.31)
7/31/94 0.51
8/31/94 0.21
9/30/94 0.04
10/31/94 (1.00)
11/30/94 (0.55)
12/31/94 0.49
1/31/95 (1.23)
2/28/95 (1.46)
3/31/95 (0.81)
4/30/95 (1.01)
5/31/95 (0.99)
6/30/95 (1.63)
7/31/95 0.01
8/31/95 0.18
9/30/95 (0.07)
10/31/95 0.90
11/30/95 0.79
12/31/95 0.64
1/31/96 0.25
2/29/96 0.46
3/31/96 (0.02)
4/30/96 (1.65)
5/31/96 (1.75)
6/30/96 (1.40)
7/31/96 0.11
8/31/96 0.25
9/30/96 0.77
10/31/96 1.78
11/30/96 2.45
12/31/96 2.56
1/31/97 0.64
2/28/97 0.86
3/31/97 1.41
4/30/97 2.58
5/31/97 0.59
6/30/97 0.45
7/31/97 1.50
8/31/97 0.11
9/30/97 (1.68)
10/31/97 (4.13)
11/30/97 (1.38)
12/31/97 (0.68)
1/31/98 (1.33)
2/28/98 (1.00)
3/31/98 (0.13)
4/30/98 (0.40)
5/31/98 (0.42)
6/30/98 (0.33)
7/31/98 (0.31)
8/31/98 0.81
9/30/98 0.90
10/31/98 0.62
11/30/98 (0.21)
12/31/98 0.18
1/31/99 0.89
2/28/99 (0.09)
3/31/99 1.10
4/30/99 0.27
5/31/99 (1.10)
6/30/99 (2.29)
7/31/99 (2.81)
8/31/99 (2.14)
9/30/99 (3.73)
10/31/99 (0.40)
11/30/99 0.74
12/31/99 3.45
1/31/00 4.60
2/29/00 13.49
<PAGE>
PERFORMANCE SUMMARY. The Bogle Small Cap Growth Fund posted very strong
absolute returns of +48.3% for the period from its initial offering on October
1, 1999 through February 29, 2000. We believe the Fund's performance compares
favorably with the equal-weighted benchmarks, which most closely match the
portfolio profile. Equal weighting caused us to have a more difficult time
against the very narrow leadership that drove the cap-weighted benchmark
returns. We equal weight portfolio positions because we believe that this
diversifies away stock-specific risk and because we believe that this allows our
stock selection process to capture more relative return than if we were
constrained by a capitalization-oriented framework. We recognize that this is
also a source of risk relative to a cap-weighted benchmark, particularly in the
environment described above in which the largest cap small caps dominate.
Generally, however, we believe that these performance differentials tend to
reverse themselves over time, and cap- and equal-weighted smaller stock
benchmarks generate comparable long-term returns.
[GRAPHIC OMITTED]
SINCE INCEPTION RETURNS THROUGH FEBRUARY 29, 2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Bogle Fund Russell 2000 Total Equal-Weighted Russell 2000 Total Russell 2000 Growth Equal-Weighted Russell 2000 Growth
<S> <C> <C> <C> <C>
48.3% 35.8% 22.0% 62.9% 35.8%
</TABLE>
2
<PAGE>
INVESTMENT STRATEGY AND CURRENT POSITIONING. Our investment strategy seeks
to identify stocks that have the best prospects for delivering solid earnings,
though we seek to avoid those companies whose prospects are already reflected in
a high current stock price. We believe our value-based insights are an important
diversification tool for us, as we believe they tend to work in those inevitable
market environments when our earnings quality and growth insights are less
effective. We expect over the long term to have a growth orientation but with a
risk profile most in line with the broadly based Russell 2000 Total Index.
Therefore, we believe our results are best measured primarily against this
index. The fundamental characteristics of the Fund and the Russell 2000 indices
are presented below. These characteristics represent the fund at 2/29/00 and do
not represent any current or future characteristics or any return potential for
the fund.
<TABLE>
<CAPTION>
Fundamental Characteristics as of February 29, 2000
FUND RUSSELL 2000 RUSSELL 2000 GROWTH
------ -------------- -------------------
<S> <C> <C> <C>
Earnings Growth Rate 23.7% 23.1% 28.5%
Median Market Cap (millions) $746.9 $1,002.8 $1,439.0
Price/Forward Earnings 25.2x 30.6x 66.8x
Price/Book Ratio 6.7x 5.3x 11.2x
Price/Sales Ratio 3.1x 3.3x 7.7x
</TABLE>
We thank you for your business and your confidence in our investment
process. We have experienced enough asset growth in the Investor Class to
receive a ticker symbol and the Investor Class of shares are now listed as
BOGLX. Please call us with any questions about our recent results, our views on
the market, or anything else that might be on your mind.
Respectfully,
Bogle Investment Management, L.P.
Management Office: 781-283-5000
Shareholder Services Toll Free: 1-877-BOGLEIM (264-5346)
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE PERFORMANCE. THE INVESTMENT
RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL FLUCUATE, SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
ORIGINAL COST. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT
PROSPECTUS. THE RUSSELL 2000 IS AN INDEX OF STOCKS 1001 THROUGH 3000 IN THE
RUSSELL 3000 INDEX AS RANKED BY TOTAL MARKET CAPITALIZATION. THE RUSSELL
2000 GROWTH INDEX MEASURES THE PERFORMANCE OF THOSE RUSSELL 2000 COMPANIES
WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH RATES. A
DIRECT INVESTMENT IN THE INDICES IS NOT POSSIBLE. INVESTING IN SMALL
COMPANIES CAN INVOLVE MORE VOLATILITY, LESS LIQUIDITY, AND LESS PUBLICLY
AVAILABLE INFORMATION THAN INVESTING IN LARGE COMPANIES.
3
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 29, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------- -----
COMMON STOCKS--94.0%
BASIC INDUSTRY--1.2%
Brady Corp., Class A* ......... 2,200 $ 59,675
Century Aluminum Co. .......... 4,800 65,400
US Can Corp.* ................. 3,100 39,525
-----------
164,600
-----------
CONSUMER CYCLICAL--11.5%
Brauns Fashions Corp.* ........ 4,000 60,000
Brookstone, Inc.* ............. 4,000 64,000
Cato Corp., Class A ........... 7,700 77,000
Concord Camera Corp.* ......... 4,000 151,000
Direct Focus, Inc.* ........... 1,400 39,113
Dollar Thrifty Automotive
Group, Inc.* ................ 1,900 24,938
Footstar, Inc.* ............... 1,200 29,625
Frontier Airlines, Inc.* ...... 7,000 77,875
Gadzooks, Inc.* ............... 7,300 116,344
Harman International
Industries, Inc. ............ 1,600 99,100
Haverty Furniture Cos.,
Inc. ........................ 2,300 24,869
Hot Topic, Inc.* .............. 4,400 74,800
JAKKS Pacific, Inc.* .......... 6,850 113,025
Kenneth Cole Productions,
Inc., Class A* .............. 1,900 96,900
Musicland Stores Corp.* ....... 6,000 40,875
P.F. Chang's China Bistro,
Inc.* ....................... 2,000 60,125
RARE Hospitality
International, Inc.* ........ 4,800 90,600
Timberland Co., Class A* ...... 2,500 107,188
Tuesday Morning Corp.* ........ 3,600 46,800
Ultimate Electronics,
Inc.* ....................... 2,600 42,575
Universal Electronics,
Inc.* ....................... 3,000 59,250
WMS Industries, Inc.* ......... 6,000 68,250
-----------
1,564,252
-----------
NUMBER
OF SHARES VALUE
--------- -----
CONSUMER GROWTH--16.3%
Advance Paradigm, Inc.* ....... 5,000 $ 118,281
Allscripts, Inc.* ............. 400 27,600
Apria Healthcare Group,
Inc.* ....................... 4,900 69,825
Argosy Gaming Co.* ............ 5,400 61,088
Aurora Biosciences
Corp.* ...................... 900 96,300
Aztar Corp.* .................. 7,700 73,150
Candela Laser Corp.* .......... 6,900 103,500
Career Education Corp.* ....... 2,400 90,000
Church and Dwight, Inc. ....... 2,000 34,125
Coors, (Adolph) Class B ....... 2,600 114,075
Datascope Corp. ............... 1,500 59,813
Dean Foods Co. ................ 2,000 54,250
Diversa Corp.* ................ 300 40,050
Dura Pharmaceuticals,
Inc.* ....................... 5,400 74,925
Guess, Inc.* .................. 3,700 78,856
Ivax Corp.* ................... 5,550 126,263
Jones Pharma, Inc. ............ 1,700 121,975
Keebler Foods Co. ............. 4,500 114,187
Liposome Co., Inc. (The)* ..... 1,900 25,531
Mentor Corp. .................. 4,000 111,000
Mid Atlantic Medical
Services, Inc.* ............. 8,000 65,500
Pharmacopeia, Inc.* ........... 900 61,256
Pinnacle Entertainment,
Inc.* ....................... 4,900 84,525
PolyMedica Corp.* ............. 1,500 69,469
Shire Pharmaceuticals
Group PLC - ADR* ............ 855 41,040
Station Casinos, Inc.* ........ 4,000 78,500
The Great Atlantic &
Pacific Tea Co., Inc. ....... 2,800 65,625
Trigon Healthcare, Inc.* ...... 1,800 57,488
Varian Medical Systems,
Inc.* ....................... 2,000 79,875
Vical, Inc.* .................. 500 29,531
-----------
2,227,603
-----------
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------- -----
ENERGY--1.1%
Triton Energy Ltd.* ........... 2,400 $ 67,800
Ultramar Diamond
Shamrock Corp. .............. 4,000 86,750
-----------
154,550
-----------
FINANCIAL--5.0%
Advanta Corp., Class A ........ 4,600 85,675
Affiliated Managers
Group, Inc.* ................ 2,800 110,075
Americredit Corp.* ............ 5,100 70,762
Compucredit Corp.* ............ 2,400 79,200
Eaton Vance Corp. ............. 1,700 70,444
Metris Companies, Inc. ........ 1,400 36,225
SEI Investments Co. ........... 1,200 107,175
Silicon Valley
Bancshares* ................. 1,600 126,800
-----------
686,356
-----------
INDUSTRIAL--10.4%
Applied Industrial
Technologies, Inc. .......... 5,000 90,625
Elcom International, Inc.* .... 1,900 44,531
EMCOR Group, Inc.* ............ 4,400 99,000
Graco, Inc. ................... 2,400 72,450
Insight Enterprises, Inc.* .... 2,400 75,300
Insituform Technologies,
Inc., Class A* .............. 4,800 135,600
Korn Ferry International* ..... 1,800 67,500
Landstar System, Inc.* ........ 2,000 112,375
Learning Tree
International, Inc.* ........ 3,500 93,188
LSI Industries, Inc. .......... 1,900 30,756
MasTec, Inc.* ................. 1,300 74,913
MICROS Systems, Inc.* ......... 1,500 83,063
Professional Detailing,
Inc.* ....................... 2,300 49,450
Scott Technologies, Inc.* ..... 3,600 69,300
The St. Joe Co. ............... 2,700 65,306
Transportation Technologies
Industries, Inc.* ........... 3,600 76,500
United Stationers, Inc.* ...... 2,600 69,875
NUMBER
OF SHARES VALUE
--------- -----
INDUSTRIAL--(CONTINUED)
Viant Corp.* .................. 1,200 $ 45,525
Wabash National Corp. ......... 4,400 61,600
-----------
1,416,857
-----------
INTERNET/TELECOMMUNICATIONS--4.2%
About.com, Inc.* .............. 900 63,225
Allaire Corp.* ................ 400 51,750
Autobytel.com, Inc.* .......... 1,900 20,306
BroadVision, Inc.* ............ 200 50,512
Copper Mountain
Networks, Inc.* ............. 1,200 104,325
Go2Net, Inc.* ................. 500 43,500
Mercury Interactive
Corp.* ...................... 1,800 173,475
Ortel Corp.* .................. 300 54,300
Razorfish, Inc.* .............. 500 16,750
-----------
578,143
-----------
TECHNOLOGY--43.3%
8X8, Inc.* .................... 4,600 138,575
ACT Networks, Inc.* ........... 2,400 33,600
Active Voice Corp.* ........... 2,300 126,212
Advanced Fibre
Communications, Inc.* ....... 2,200 149,875
Amkor Technology, Inc.* ....... 3,000 155,813
ANADIGICS, Inc.* .............. 1,300 175,500
Anaren Microwave, Inc.* ....... 1,900 144,163
AremisSoft Corp.* ............. 900 35,775
Brightpoint, Inc.* ............ 3,500 45,062
Brio Technology, Inc.* ........ 1,900 76,119
Brooks Automation, Inc.* ...... 800 57,800
Brooktrout Technology,
Inc.* ....................... 3,100 148,800
Business Objects
SA - ADR* ................... 1,100 126,362
California Amplifier,
Inc.* ....................... 1,400 63,175
Centigram Communications
Corp.* ...................... 5,100 105,188
Cirrus Logic Corp.* ........... 5,400 112,387
Coherent, Inc.* ............... 1,300 137,800
Cohu, Inc. .................... 700 39,462
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------- -----
TECHNOLOGY--(CONTINUED)
Corsair Communications,
Inc.* ....................... 2,000 $ 57,000
CyberOptics Corp.* ............ 3,000 110,250
Cypress Semiconductor
Corp.* ...................... 1,400 63,875
Digital River, Inc.* .......... 3,100 111,600
Ditech Communications
Corp.* ...................... 1,200 131,100
Elantec Semiconductor,
Inc.* ....................... 2,500 157,344
Electroglas, Inc.* ............ 3,100 120,125
ESS Technology, Inc.* ......... 4,000 62,250
FileNet Corp.* ................ 3,700 158,406
Forrester Research, Inc.* ..... 3,600 144,000
In Focus Systems, Inc.* ....... 4,400 147,400
Inet Technologies, Inc.* ...... 1,600 69,400
Integrated Device
Technology, Inc.* ........... 3,000 110,625
Interlink Electronics,
Inc.* ....................... 1,500 129,187
International Rectifier
Corp.* ...................... 3,300 138,188
Internet.com Corp.* ........... 1,000 44,500
Kronos, Inc.* ................. 700 44,450
Lam Research Corp.* ........... 500 78,062
Lightbridge, Inc.* ............ 3,700 87,413
MIPS Technologies, Inc.* ...... 1,300 76,050
MKS Instruments, Inc.* ........ 1,100 50,050
Natural Microsystems
Corp.* ...................... 1,600 102,000
NetIQ Corp.* .................. 1,200 80,550
Netrix Corp.* ................. 2,700 67,162
NetScout Systems, Inc.* ....... 2,100 43,181
Novadigm, Inc.* ............... 4,600 106,950
Objective Systems
Integrators, Inc.* .......... 5,400 103,950
Paradyne Networks, Inc.* ...... 800 35,800
Photon Dynamics, Inc.* ........ 700 45,500
Planar Systems, Inc.* ......... 4,900 79,012
Progress Software
Corp.* ...................... 5,400 134,663
Proxim, Inc.* ................. 500 71,750
Remedy Corp.* ................. 1,600 90,700
Rogers Corp.* ................. 1,500 88,031
ScanSource, Inc.* ............. 2,600 98,800
NUMBER
OF SHARES VALUE
--------- -----
TECHNOLOGY--(CONTINUED)
Sensormatic Electronics
Corp.* ...................... 5,200 $ 98,800
Serena Software, Inc.* ........ 3,500 147,656
Sybase, Inc.* ................. 5,000 125,313
Telcom Semiconductor, Inc.* ... 1,500 33,187
Three-Five Systems, Inc.* ..... 1,500 92,062
Trimble Navigation Ltd.* ...... 4,100 98,400
Vishay Intertechnology,
Inc.* ....................... 2,000 86,000
Xircom, Inc.* ................. 1,700 70,603
Zomax, Inc.* .................. 1,200 58,725
-----------
5,921,738
-----------
UTILITY--1.0%
Commonwealth Telephone
Enterprises, Inc.* .......... 1,700 74,163
MidAmerican Energy
Holdings Co.* ............... 500 17,312
TALK.com, Inc.* ............... 2,600 43,875
-----------
135,350
-----------
TOTAL COMMON STOCKS
(Cost $10,484,640) ........ 12,849,449
-----------
PAR
(000) VALUE
----- -----
REPURCHASE AGREEMENTS--2.5%
PNC Funding Corp.
(Agreement dated 02/29/00
to be repurchased at
$335,039) ................... $335 335,000
-----------
TOTAL REPURCHASE
AGREEMENTS
(Cost $335,000) ............. 335,000
-----------
TOTAL INVESTMENTS--96.5%
(Cost $10,819,640) ............ 13,184,449
-----------
ASSETS IN EXCESS
OF OTHER LIABILITIES--3.5% .... 476,264
-----------
NET ASSETS--100.0% ............... $13,660,713
===========
- -------------
*Non-income producing.
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000
(UNAUDITED)
ASSETS
Investments, at value (cost - $10,819,640) ................... $13,184,449
Cash ......................................................... 662,986
Receivable from Investment Advisor ........................... 11,022
Receivable for investments sold .............................. 273,188
Receivable for Fund shares sold .............................. 10,679
Dividends and interest receivable ............................ 3,805
Other assets ................................................. 23
-----------
Total assets ............................................... 14,146,152
-----------
LIABILITIES
Payable for investments purchased ............................ 477,185
Accrued expenses and other liabilities ....................... 8,254
-----------
Total liabilities .......................................... 485,439
-----------
NET ASSETS
Capital stock, $0.001 par value .............................. 10,842,385
Accumulated net realized gain from investments ............... 453,519
Net unrealized appreciation on investments ................... 2,364,809
-----------
Net assets ................................................. $13,660,713
===========
INSTITUTIONAL CLASS
Net assets ................................................... $ 3,310,555
-----------
Shares outstanding ........................................... 186,055
-----------
Net asset value, offering and redemption price per share ..... $ 17.79
===========
INVESTOR CLASS
Net assets ................................................... $10,350,158
-----------
Shares outstanding ........................................... 581,761
-----------
Net asset value, offering and redemption price per share ..... $17.79
======
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THE PERIOD
OCTOBER 1, 1999*
THROUGH
FEBRUARY 29, 2000
-----------------
INVESTMENT INCOME
Interest ................................................... $ 11,546
Dividends .................................................. 4,795
-----------
16,341
-----------
EXPENSES
Administration fees ........................................ 41,004
Transfer agent fees and expenses ........................... 32,566
Advisory fees .............................................. 25,547
Audit and Legal fees ....................................... 13,264
Federal and state registration fees ........................ 11,763
Custodian fees and expenses ................................ 7,500
Printing ................................................... 6,502
Shareholder services ....................................... 2,563
Administrative services .................................... 174
Trustee fees and expenses .................................. 84
Insurance expense .......................................... 15
Other ...................................................... 499
-----------
Total expenses before waivers and reimbursements ......... 141,481
Less: waivers and reimbursements ......................... (107,583)
-----------
Total expenses after waivers and reimbursements .......... 33,898
-----------
Net investment loss ........................................ (17,557)
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investments ......................... 453,519
Net change in unrealized appreciation on investments ....... 2,364,809
-----------
Net realized and unrealized gain from investments .......... 2,818,328
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .......... $ 2,800,771
===========
- -----------
* Commencement of investment operations.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
(UNAUDITED)
FOR THE PERIOD
OCTOBER 1, 1999*
THROUGH
FEBRUARY 29, 2000
-----------------
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss ....................................... $ (17,557)
Net realized gain from investments ........................ 453,519
Net change in unrealized appreciation on investments ...... 2,364,809
-----------
Net increase in net assets resulting from operations ...... 2,800,771
-----------
LESS DIVIDEND AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income Institutional shares ............... --
Net investment income Investor shares ..................... --
Net realized capital gains Institutional shares ....... --
Net realized capital gains Investor shares ............... --
-----------
Total dividends and distributions to shareholders ....... --
-----------
INCREASE IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS ................................ 10,859,942
-----------
Total increase in net assets .............................. 13,660,713
===========
NET ASSETS
Beginning of period ....................................... --
-----------
End of period (Includes Undistributed Net
Investment Income of $0) ............................... $13,660,713
===========
- ----------
* Commencement of investment operations.
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(UNAUDITED)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for each class of shares
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>
FOR THE PERIOD FOR THE PERIOD
OCTOBER 1, 1999* OCTOBER 1, 1999*
THROUGH THROUGH
FEBRUARY 29, 2000 FEBRUARY 29, 2000
----------------- -----------------
INSTITUTIONAL INVESTOR
CLASS CLASS
----------------- ------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period .................................... $12.00 $ 12.00
------ -------
Net investment loss(1) .................................................. (0.02) (0.02)
Net realized and unrealized gain on investments(2) ...................... 5.81 5.81
------ -------
Net increase in net assets resulting from operations .................... 5.79 5.79
------ -------
Dividends to shareholders from:
Net investment income ................................................... 0.00 0.00
Net realized capital gains .............................................. 0.00 0.00
------ -------
Net asset value, end of period .......................................... $17.79 $ 17.79
====== =======
Total investment return(3) .............................................. 48.25% 48.25%
====== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ............................... $3,311 $10,350
Ratio of expenses to average net assets(1) .............................. 1.25%(4) 1.35%(4)
Ratio of expenses to average net assets without waivers and
expense reimbursements(1) ............................................ 5.94%(4) 5.42%(4)
Ratio of net investment income to average net assets(1) ................. (0.58)%(4) (0.72)%(4)
Portfolio turnover rate(3) .............................................. 45.89% 45.89%
<FN>
- ------------
* Commencement of operations.
(1) Reflects waivers and reimbursements.
(2) The amounts shown for each share outstanding throughout the respective
period are not in accordance with the changes in the aggregate gains and
losses on investments during the respective period because of the timing of
sales and repurchases of Fund shares in relation to fluctuating net asset
values during the respective period.
(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 and turnover are not annualized.
(4) These numbers are annualized
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH 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. The 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 seventeen investment portfolios, including the
Bogle Investment Management Small Cap Growth Fund (the "Fund"). As of the date
here of, the Fund offers two classes of shares, Institutional Class and Investor
Class.
RBB has authorized capital of thirty billion shares of common stock of
which 20.03 billion are currently classified into ninety-nine classes. Each
class represents an interest in one of seventeen investment portfolios of RBB.
The classes have been grouped into fifteen separate "families," ten of which
have begun investment operations. The Bogle Investment Management Small Cap
Growth Fund, commenced investment operations on October 1, 1999.
PORTFOLIO VALUATION -- The net asset value of the Fund is determined as of
4:00 p.m. eastern time on each business day. The 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 ask 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 the RBB's Board of Directors, the Fund
may use a pricing service, bank or broker-dealer experienced in such matters to
value its securities. Short-term obligations with maturities of 60 days or less
are valued at amortized cost that 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 the
Fund.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilites at the date of
the financial statements and the reported amounts of revenues and expenses
during the period. Actual results could differ from those estimates.
REPURCHASE AGREEMENTS -- The 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 the Fund enters into repurchase agreements are banks and
broker/dealers that Bogle Investment Management, L.P. (the "Adviser") considers
creditworthy. 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. The Adviser marks to
market daily the value of the collateral, and, if necessary, requires the seller
to
11
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
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
the Fund to possible loss because of adverse market action or delays in
connection with the disposition of the underlying securities.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME -- Securities 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. The Fund's net investment income (other than class specific
distribution fees) and unrealized and realized gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
of each class at the beginning of the day (after adjusting for current capital
share activity of the respective classes).
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 the Fund's intention to qualify for and elect the tax treatment
applicable to regulated investment companies under Subchapter M of the Internal
Revenue Code of 1986, as amended, and make the requisite distributions to its
shareholders which will be sufficient to relieve it from U.S. federal income and
substantially all excise taxes.
2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Bogle Investment Managment, L.P. serves as the Fund's investment adviser.
For its advisory services, the Adviser is entitled to receive 1.00% of the
Fund's average daily net assets, computed daily and payable monthly.
The adviser has agreed to limit the Fund's total operating expenses for the
current and the following fiscal year to the extent that such expenses exceeded
1.25% of the Fund's Institutional Class average daily net assets and 1.35% of
the Fund's Investor Class 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 period October 1, 1999* through
February 29, 2000, (unless otherwise indicated) investment advisory fees,
waivers and reimbursements of expenses were as follows:
<TABLE>
<CAPTION>
GROSS NET FUND EXPENSE
ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT
------------- --------- ------------- -------------
<S> <C> <C> <C> <C>
Bogle Investment Management
Small Cap Growth Fund $25,547 $(25,547) $ -- $(47,661)
<FN>
- -------------
*Commencement of investment operations.
</FN>
</TABLE>
The Fund will not pay the Adviser at a later time for any amounts they may
waive or any amounts which the Adviser has assumed.
12
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
PFPC, Inc. ("PFPC"), a wholly-owned subsidiary of PFPC Worldwide Inc., an
indirect wholly-owned subsidiary of The PNC Financial Services Group, Inc.,
serves as administrator for the Fund. For providing administrative services,
PFPC is entitled to receive a monthly fee equal to an annual rate of 0.115% of
the Fund's average daily net assets.
For the period October 1, 1999* through February 29, 2000, (unless
otherwise indicated) PFPC, at its discretion, voluntarily agreed to waive a
portion of its administration fees for the Fund. During this period, (unless
otherwise indicated) PFPC's administration fees and related waivers were as
follows:
NET
PFPC GROSS ADMINISTRATION
ADMINISTRATION FEES WAIVERS FEES
------------------- --------- --------------
Bogle Investment Management
Small Cap Growth Fund $ 41,004 $(15,625) $25,379
- --------------
* Commencement of investment operations.
In addition, PFPC serves as the Fund's transfer and dividend disbursing
agent. PFPC, at its discretion, voluntarily agreed to waive a portion of its
transfer agency fees for the Fund. For the period October 1, 1999* through
February 29, 2000, (unless otherwise indicated) transfer agency fees and waivers
were as follows:
GROSS TRANSFER NET TRANSFER
AGENCY FEES WAIVERS AGENCY FEES
-------------- -------- ------------
Bogle Investment Management
Small Cap Growth Fund $32,566 $(15,000) $17,566
- --------------
* Commencement of investment operations.
Provident Distributors, Inc. ("PDI"), provides certain administrative
services to the Institutional Shares of the Fund. As compensation for such
administrative services, PDI is entitled to receive a monthly fee equal to an
annual rate of 0.15% of the average daily net assets of the Fund's Institutional
Class Shares. PDI, at its discretion voluntarily agreed to waive a portion of
its administrative fee for the Fund.
For the period October 1, 1999* through February 29, 2000 (unless otherwise
indicated), administrative services fees and waivers were as follows:
GROSS ADMINISTRATIVE NET ADMINISTRATIVE
SERVICES FEES WAIVERS SERVICES FEES
-------------------- ------- ------------------
Bogle Investment Management
Small Cap Growth Fund $868 $(694) $174
- --------------
* Commencement of investment operations.
13
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
PFPC Trust Company provides certain custodial services to the Fund. As
compensation for such custodial services, PFPC Trust Co. is entitled to receive
a monthly fee equal to an annual rate of 0.03% of the Fund's average daily net
assets.
For the period October 1, 1999* through February 29, 2000 (unless otherwise
indicated), PFPC Trust Co. has, at its discretion, voluntarily agreed to waive a
portion of its custodial fees for the Fund. During this period (unless otherwise
indicated), custodial fees and waivers were as follows:
GROSS CUSTODIAL NET CUSTODIAL
FEES WAIVERS FEES
--------------- ---------- -------------
Bogle Investment Management
Small Cap Growth Fund $7,500 $(3,750) $3,750
- --------------
* Commencement of investment operations.
3. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the costs of securities owned at
February 29, 2000 was $10,815,425. Accordingly, the net unrealized
appreciation/(depreciation) of investments was as follows:
NET APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ -----------------
Bogle Investment Management
Small Cap Growth Fund $2,868,169 $(499,145) $2,369,024
For the period October 1, 1999* through February 29, 2000 (unless otherwise
indicated), aggregate purchases and sales of investment securities (excluding
short-term investments) were as follows:
INVESTMENT SECURITIES
-------------------------------
PURCHASES SALES
------------ ----------
Bogle Investment Management
Small Cap Growth Fund $13,287,177 $3,256,056
- --------------
* Commencement of investment operations.
14
<PAGE>
BOGLE INVESTMENT MANAGEMENT
SMALL CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
4. CAPITAL SHARE TRANSACTIONS
As of February 29, 2000, the Fund has 100,000,000 shares of $0.001 par
value common stock authorized for the Institutional Class and 100,000,000 shares
of $0.001 par value common stock authorized for the Investor Class.
Transactions in capital shares for the period October 1, 1999* through
February 29, 2000 were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD FOR THE PERIOD
ENDED ENDED
FEBRUARY 29, 2000 FEBRUARY 29, 2000
(UNAUDITED) (UNAUDITED)
-------------------------- ---------------------------
INSTITUTIONAL CLASS INVESTOR CLASS
-------------------------- ---------------------------
SHARES VALUE SHARES VALUE
-------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Sales ....................................... 186,055 $2,646,403 594,459 $8,408,189
Redemptions ................................. -- -- (12,698) (194,650)
Reinvestments ............................... -- -- -- --
------- ---------- ------- ----------
Net Increase ................................ 186,055 $2,646,403 581,761 $8,213,539
======= ========== ======= ==========
<FN>
- --------------
* Commencement of investment operations.
</FN>
</TABLE>
15
<PAGE>
INVESTMENT ADVISER
Bogle Investment Management, L.P.
57 River Street
Suite 206
Wellesley, MA 02481
ADMINISTRATOR/TRANSFER AGENT
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
DISTRIBUTOR
Provident Distributors, Inc.
3200 Horizon Drive
King of Prussia, PA 19046
CUSTODIAN
PFPCTrust Company
8800 Tinicum Blvd.
Suite 200
Philadelphia, PA 19153
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, PA 19103
COUNSEL
Drinker Biddle & Reath LLP
One Logan Square
18th and Cherry Streets
Philadelphia, PA 19103-6996
The finanical information included herein is taken from the records of the Fund
without examination by independent accountants who do not express an opinion
thereon.
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for the distribution to prospective investors in the
Fund unless it is preceded or accompanied by a current prospectus which includes
details regarding the Fund's objectives, policies and other information. Total
investment return is based on historical results and is not intended to indicate
future performance. The investment return and principal value of an investment
in the Fund will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than original cost.
