N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
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N/I NUMERIC INVESTORS
Micro Cap Fund
N/I NUMERIC INVESTORS
Growth Fund
N/I NUMERIC INVESTORS
Mid Cap Fund
N/I NUMERIC INVESTORS
Larger Cap Value Fund
N/I NUMERIC INVESTORS
Small Cap Value Fund
Semi-Annual Report
February 29, 2000
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N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
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MICRO CAP FUND
GROWTH FUND
MID CAP FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
ADVISER'S REPORT
April 7, 2000
Dear Shareholder:
As your Funds' adviser, we are pleased to report the semi-annual results for the
N/I NUMERIC INVESTORS FAMILY OF FUNDS ("the Funds") for the six months ended
February 29, 2000.
NEW ECONOMY VERSUS OLD ECONOMY STOCKS
Over the last six months, the most popular topic of discussion among investment
managers has been the new way to partition the stock market. Almost every
investment letter and newspaper article we read makes mention of "New Economy"
versus "Old Economy" stocks. Generally, Telecommunications, Media and Technology
("TMT") stocks comprise the New Economy while all remaining sectors are lumped
into the Old Economy. In recent months, a surge of interest in the Human Genome
Project has caused Biotech stocks to be placed among New Economy stocks as well.
Many shareholders have asked our opinion on this topic. The most effective way
for us, at Numeric Investors L.P.(REGISTRATION MARK) ("Numeric"), to think
through the question of Old versus New Economy stocks is to analyze how our
quantitative models view these stocks. The primary stock selection tool we
utilize for the N/I NUMERIC INVESTORS Growth and Micro Cap Funds is the
ESTREND(TRADEMARK) model. For the Mid Cap Fund, ESTREND(TRADEMARK) and the FAIR
VALUE model each contribute about half of the stock selection process. For the
Larger and Small Cap Value Funds, ESTREND(TRADEMARK) plays only a minor role and
FAIR VALUE is the model of choice.
New Economy stocks account for varying portions of your Funds' holdings
depending on the role such stocks play in the Funds' benchmark indices. The
Micro Cap and Growth Funds both contain over 50% in New Economy stocks, the Mid
Cap Fund has a 35% exposure to such stocks, and the Small and Larger Cap Value
Funds have much lower exposures.
We believe the ESTREND(TRADEMARK) model is an effective tool for uncovering New
Economy stocks by quantitatively measuring the trend in analysts' estimate
revisions. We find that many of these New Economy stocks initially reveal their
future promise in the form of analysts becoming more optimistic about their
earnings prospects. The ESTREND(TRADEMARK) model is run in real-time as new
analysts' estimates are received, adapting to new information and the current
market environment rapidly. Through the lens of the ESTREND(TRADEMARK) model, we
hope to see which stocks are enjoying a surge in new opportunities and thus we
believe we are better able to adapt to the next hot industry, when one emerges.
On the other side of the ledger, we believe valuation tools are not dead for New
Economy stocks, at least not in the approach that Numeric uses in its FAIR VALUE
model. The FAIR VALUE model is Numeric's tool of choice for selecting among Old
Economy stocks because we believe such companies are less likely to "take on a
new life" because of a company-changing new product. The FAIR VALUE model
incorporates into the traditional "value" definition a willingness to pay more
for stocks with the potential for rapid growth and higher quality. Thus the FAIR
VALUE model has not struggled as much as "deep" value techniques in the recent
pro-growth market environment.
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Through the lens of our ESTREND(TRADEMARK) model, we find many New Economy
stocks to be attractive because of their strongly rising earnings estimates. Not
only are they forecast to grow their earnings rapidly, but their rate of growth
also is increasing as estimates continue to soar. From the perspective of our
FAIR VALUE model however, we believe most New Economy stocks look richly priced,
especially when compared to Old Economy stocks. Implicit in the current spread
in pricing between New and Old Economy stocks is the belief that New Economy
companies will do even better than forecast, while Old Economy companies will
fare even worse.
Numeric emphasizes the ESTREND(TRADEMARK) model when selecting among smaller,
growth companies and, as a result, we are able to find attractive New Economy
stocks to buy. Importantly, not every New Economy stock enjoys strongly rising
earnings estimates, but we believe, many of these stocks have been buoyed to
lofty valuations just by being in a New Economy industry. The ESTREND(TRADEMARK)
model steers us away from companies without improving fundamentals. When the
market adopts a more cynical view of New Economy companies, we are optimistic
that our focus on companies with improving fundamentals will benefit the Funds.
MARKET ENVIRONMENT - AUGUST 1999 THROUGH FEBRUARY 2000
AN EXTRAORDINARY PREFERENCE FOR GROWTH
The market environment for the six months ended February 29, 2000, produced the
strongest preference for Growth stocks over Value stocks since market analysts
began tracking returns for the two investment styles more than twenty years ago.
The chart below shows that the spread in favor of Growth stocks was 31.4% among
the larger cap stocks in the Russell 1000 Index, and 63.2% among the smaller
stocks comprising the Russell 2000 Index, for the six months ended February 29,
2000. The chart also reveals that the smaller cap Russell 2000 Index produced
higher returns than the larger cap Russell 1000 Index. This is the first
six-month period in several years during which smaller stocks outperformed
larger.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF TOTAL RETURN FOR THE SIX MONTH PERIOD
ENDED FEBRUARY 29, 2000
Russell 1000 Russell 2000
Growth 22.5% 66.0%
Value (8.9)% 2.8%
SOURCE: FRANK RUSSELL COMPANY
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INDUSTRY AND SECTOR PREFERENCES
Reflecting the market's predilection for smaller Growth stocks, two industries
with great perceived potential to change the way we live, Internet and Biotech,
produced returns far higher than the returns of smaller cap Growth stocks in
general for the six months ended February 29, 2000. And the return of the
Technology sector in general far eclipsed the return of other sectors. Excluding
the returns of the two favored industries, the returns of the Russell 2000
Growth and 2500 Growth indices would have been lower by more than 13%.
Eliminating the return of Technology stocks from these indices would have
produced returns one-half to one-third as great. It appears to Numeric that any
underweighting in these most-favored industries or top-performing sector was
extremely costly to investors over the last six months.
SIX-MONTH CAP-WEIGHTED
BENCHMARK, SECTOR OR INDUSTRY RETURNS THROUGH FEBRUARY 29, 2000
- ----------------------------- --------------------------------
RUSSELL 2500 GROWTH INDEX +75.70%
Internet Stocks in Russell 2500 Growth Index +180.64%
Biotech Stocks in Russell 2500 Growth Index +209.04%
Technology Stocks in Russell 2500 Growth Index +157.20%
RUSSELL 2500 GROWTH INDEX EX-INTERNET & BIOTECH +62.41%
RUSSELL 2500 GROWTH INDEX EX-TECHNOLOGY STOCKS +23.62%
RUSSELL 2000 GROWTH INDEX +66.04%
Internet Stocks in Russell 2000 Growth Index +171.91%
Biotech Stocks in Russell 2000 Growth Index +230.59%
Technology Stocks in Russell 2000 Growth Index +139.89%
RUSSELL 2000 GROWTH INDEX EX-INTERNET & BIOTECH +52.82%
RUSSELL 2000 GROWTH INDEX EX-TECHNOLOGY STOCKS +26.84%
Numeric seeks to control economic sector exposures in the Funds to within a few
percentage points of the economic sector content of each Fund's benchmark index.
The two strongest performing industries, Biotech and Internet, were generally
underweighted in the Funds because these industries were judged by Numeric to
not be responsive to changing earnings expectations (the ESTREND(TRADEMARK)
model) or valuation forces (the FAIR VALUE model). Rather, we believe the
market's fascination with these industries was not driven by near-term earnings
expectations. As shown in the table above, the underweighting in these two
industries reduced returns by approximately 13% from the returns that might have
been achieved had the Funds maintained benchmark weightings in these industries.
SUCCESS OF THE STOCK SELECTION MODELS
Over the last six months, the ESTREND(TRADEMARK) model added value, while it has
been the most perverse period for valuation techniques ever seen. The FAIR VALUE
model was not immune to the extreme anti-value environment and produced
significantly negative investment results, despite a willingness to pay more for
growth and quality. More than responding to valuation or earnings revisions
techniques however, we believe the market was especially kind to stocks with
positive price momentum. In an extremely narrow market, we believe investors
rewarded stocks that had been rising by bidding them up even more. Thus returns
were highly concentrated in a few favored industries or the Technology sector in
general, while the rest of the market languished. And now everyone is talking
about New Economy versus Old Economy stocks.
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THE EFFECT OF INVESTORS CHASING OTHER INVESTORS
We believe both institutional and retail fund inflows may have exacerbated the
price action favoring Growth stocks. Retail mutual funds continue to experience
robust inflows that have become increasingly concentrated in capital
appreciation or growth-oriented funds. In particular, investors have increased
their exposure to funds with significant New Economy exposure. In a study done
by the Investment Company Institute on a sample of 1,520 domestic stock funds,
the 10% with the largest inflows had about 30% exposure to Technology stocks,
which was roughly double the amount held in the 10% with the lowest inflows. We
believe that investors seem to be chasing performance as money has moved out of
Value funds and into Growth funds. Over the past few months new flows have been
bound mainly for Growth funds which has only added to the upward volatility in
the growth investment style.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND FLOWS OUT OF VALUE AND INTO GROWTH
FUND FLOWS IN $BILLION/MONTH
Growth Value
1/31/96 10.80 8.04
2/29/96 9.47 6.98
3/31/96 9.90 6.81
4/30/96 11.89 7.44
5/31/96 13.99 6.30
6/30/96 6.02 5.15
7/31/96 1.32 3.01
8/31/96 7.79 5.50
9/30/96 7.83 5.77
10/31/96 5.15 5.66
11/30/96 6.71 5.37
12/31/96 4.98 3.88
1/31/97 9.96 10.04
2/28/97 2.85 8.93
3/31/97 1.44 6.00
4/30/97 3.55 7.36
5/31/97 7.03 7.90
6/30/97 4.77 7.29
7/31/97 9.62 10.16
8/31/97 5.39 6.75
9/30/97 13.56 6.27
10/31/97 9.14 8.19
11/30/97 9.43 8.43
12/31/97 7.74 7.48
1/31/98 5.68 8.25
2/28/98 8.28 10.75
3/31/98 7.75 11.45
4/30/98 10.47 10.05
5/31/98 7.92 7.73
6/30/98 8.80 6.31
7/31/98 8.43 6.55
8/31/98 (3.98) (0.78)
9/30/98 5.71 2.09
10/31/98 4.55 (1.77)
11/30/98 7.96 5.16
12/31/98 4.34 0.96
1/31/99 9.51 4.35
2/28/99 3.90 1.79
3/31/99 11.46 1.74
4/30/99 19.24 4.83
5/31/99 9.90 5.13
6/30/99 9.96 3.22
7/31/99 10.82 4.47
8/31/99 5.42 1.89
9/30/99 6.12 0.97
10/31/99 12.45 1.13
11/30/99 13.81 (3.81)
12/31/99 18.82 (9.52)
1/31/00 29.00 (12.53)
SOURCE: INVESTMENT COMPANY INSTITUTE
In the chart above, flows into Growth and Value style funds are plotted since
January 1996. Note how flows were positive and more or less equal for both fund
styles prior to the Summer of 1998. Thereafter, flows strongly favored Growth
funds over Value, with outflows from Value funds in recent months partially
offsetting inflows into Growth funds since the fourth quarter of 1999.
The powerful fund flows into Growth funds and the superior returns of Growth
stocks over Value stocks has led to a market with wide spreads in valuations. In
the next chart, we plot the threshold P/E ratios above which 20% of the highest
valuation stocks in the broad-market Russell 3000 Index sell, and below which
20% of the lowest valuation stocks sell. Numeric believes that the difference
between these trailing price-earnings ratios is emblematic of the spread in
valuation levels of the most in-favor and out-of-favor stocks in the market.
4
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[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
High & Low P/E Quintile Thresholds
Trailing Earnings
P/E Quintile Thresholds
Highest Lowest
P/E Quintile P/E Quintile
Dec-78 12.60 6.30
Jan-79 12.30 6.30
Feb-79 12.10 6.40
Mar-79 12.00 6.50
Apr-79 11.80 6.40
May-79 11.70 6.30
Jun-79 11.80 6.30
Jul-79 11.80 6.30
Aug-79 12.00 6.30
Sep-79 12.30 6.40
Oct-79 12.20 6.20
Nov-79 12.30 6.10
Dec-79 12.50 6.00
Jan-80 11.80 5.70
Feb-80 11.30 5.50
Mar-80 10.80 5.30
Apr-80 10.90 5.40
May-80 11.00 5.50
Jun-80 11.30 5.70
Jul-80 12.10 5.70
Aug-80 13.00 5.80
Sep-80 14.10 6.00
Oct-80 14.50 6.00
Nov-80 14.90 6.10
Dec-80 15.60 6.20
Jan-81 15.30 6.20
Feb-81 15.20 6.20
Mar-81 15.30 6.30
Apr-81 14.90 6.30
May-81 14.70 6.40
Jun-81 14.60 6.50
Jul-81 13.60 6.20
Aug-81 12.80 5.90
Sep-81 12.10 5.70
Oct-81 12.20 5.70
Nov-81 12.50 5.80
Dec-81 12.90 6.00
Jan-82 12.10 5.70
Feb-82 11.50 5.50
Mar-82 11.00 5.40
Apr-82 11.10 5.30
May-82 11.30 5.30
Jun-82 11.60 5.30
Jul-82 12.10 5.50
Aug-82 12.70 5.70
Sep-82 13.40 6.00
Oct-82 14.60 6.20
Nov-82 15.90 6.50
Dec-82 17.40 6.90
Jan-83 17.90 7.00
Feb-83 18.60 7.20
Mar-83 19.50 7.50
Apr-83 21.50 7.80
May-83 23.60 8.10
Jun-83 26.00 8.50
Jul-83 25.20 8.30
Aug-83 24.80 8.20
Sep-83 24.50 8.20
Oct-83 24.30 8.20
Nov-83 24.30 8.30
Dec-83 24.60 8.40
Jan-84 22.70 8.20
Feb-84 21.10 8.10
Mar-84 19.60 8.00
Apr-84 18.20 7.60
May-84 17.00 7.30
Jun-84 15.90 7.00
Jul-84 15.80 7.20
Aug-84 15.90 7.40
Sep-84 16.10 7.70
Oct-84 16.00 7.60
Nov-84 16.10 7.60
Dec-84 16.30 7.70
Jan-85 16.30 7.80
Feb-85 16.40 7.90
Mar-85 16.70 8.10
Apr-85 17.10 8.20
May-85 17.70 8.30
Jun-85 18.50 8.60
Jul-85 18.10 8.40
Aug-85 17.90 8.30
Sep-85 17.90 8.30
Oct-85 19.00 8.60
Nov-85 20.40 9.00
Dec-85 21.90 9.50
Jan-86 23.30 9.80
Feb-86 24.90 10.30
Mar-86 26.80 10.80
Apr-86 27.50 11.00
May-86 28.40 11.30
Jun-86 29.60 11.70
Jul-86 27.50 11.30
Aug-86 25.70 11.00
Sep-86 24.10 10.80
Oct-86 24.30 10.70
Nov-86 24.70 10.70
Dec-86 25.30 10.80
Jan-87 28.40 11.60
Feb-87 29.30 11.60
Mar-87 30.10 11.60
Apr-87 29.60 11.40
May-87 30.50 11.20
Jun-87 31.40 11.50
Jul-87 31.10 12.50
Aug-87 31.60 12.90
Sep-87 31.10 12.70
Oct-87 21.60 10.00
Nov-87 19.30 9.30
Dec-87 22.40 10.00
Jan-88 20.20 10.30
Feb-88 21.60 10.60
Mar-88 20.80 10.30
Apr-88 20.40 10.10
May-88 19.10 9.90
Jun-88 20.40 10.20
Jul-88 19.20 9.90
Aug-88 17.10 9.20
Sep-88 17.70 9.50
Oct-88 17.50 9.30
Nov-88 16.60 9.10
Dec-88 17.00 9.30
Jan-89 17.90 9.50
Feb-89 17.60 9.20
Mar-89 18.30 9.40
Apr-89 19.30 9.60
May-89 20.30 10.00
Jun-89 20.00 9.80
Jul-89 21.60 10.30
Aug-89 21.00 10.40
Sep-89 22.00 10.20
Oct-89 21.40 10.30
Nov-89 21.80 10.30
Dec-89 21.50 10.30
Jan-90 19.90 10.00
Feb-90 20.70 10.10
Mar-90 21.20 10.30
Apr-90 21.10 10.00
May-90 23.50 11.10
Jun-90 23.90 11.20
Jul-90 23.60 10.90
Aug-90 21.30 10.00
Sep-90 19.90 9.50
Oct-90 19.20 9.70
Nov-90 20.80 10.50
Dec-90 21.10 10.70
Jan-91 21.20 11.20
Feb-91 23.50 12.00
Mar-91 24.80 11.90
Apr-91 23.70 12.10
May-91 25.00 11.80
Jun-91 24.20 11.50
Jul-91 25.60 12.50
Aug-91 26.60 12.30
Sep-91 26.00 12.60
Oct-91 28.60 12.70
Nov-91 29.80 12.30
Dec-91 34.40 13.20
Jan-92 41.00 13.50
Feb-92 41.50 13.30
Mar-92 40.90 12.90
Apr-92 37.30 13.90
May-92 37.50 14.00
Jun-92 39.70 14.00
Jul-92 40.70 14.40
Aug-92 37.90 13.90
Sep-92 38.60 14.20
Oct-92 33.70 14.20
Nov-92 35.70 14.80
Dec-92 35.20 14.90
Jan-93 32.00 14.30
Feb-93 32.00 14.20
Mar-93 33.40 14.40
Apr-93 30.70 14.00
May-93 31.60 14.20
Jun-93 32.50 14.30
Jul-93 32.00 13.80
Aug-93 33.40 14.20
Sep-93 35.50 14.20
Oct-93 34.90 13.70
Nov-93 36.60 13.50
Dec-93 36.70 13.50
Jan-94 39.90 13.60
Feb-94 32.20 13.30
Mar-94 30.80 12.70
Apr-94 29.90 12.80
May-94 30.20 12.30
Jun-94 30.80 12.10
Jul-94 29.40 12.40
Aug-94 30.70 12.60
Sep-94 30.90 12.40
Oct-94 27.60 12.40
Nov-94 26.50 11.80
Dec-94 26.40 11.90
Jan-95 24.90 12.00
Feb-95 22.90 12.00
Mar-95 23.50 12.20
Apr-95 23.20 11.90
May-95 22.90 12.60
Jun-95 24.60 12.90
Jul-95 26.30 12.60
Aug-95 25.30 12.50
Sep-95 25.50 12.80
Oct-95 24.90 12.50
Nov-95 26.10 12.90
Dec-95 26.40 13.20
Jan-96 31.50 13.00
Feb-96 33.50 13.00
Mar-96 34.30 13.40
Apr-96 33.40 13.30
May-96 35.80 13.60
Jun-96 38.20 13.70
Jul-96 33.40 13.00
Aug-96 33.70 12.90
Sep-96 37.70 13.40
Oct-96 35.70 13.60
Nov-96 37.10 14.60
Dec-96 36.70 14.80
Jan-97 34.80 15.00
Feb-97 31.50 14.90
Mar-97 30.70 14.10
Apr-97 30.90 14.50
May-97 33.50 15.20
Jun-97 38.20 15.80
Jul-97 42.70 16.20
Aug-97 39.00 15.80
Sep-97 42.30 16.60
Oct-97 41.30 16.00
Nov-97 41.80 16.80
Dec-97 40.40 16.80
Jan-98 40.90 16.00
Feb-98 42.40 17.10
Mar-98 48.00 18.00
Apr-98 52.40 18.30
May-98 48.60 17.60
Jun-98 59.40 18.20
Jul-98 51.30 17.70
Aug-98 41.50 14.80
Sep-98 47.60 15.90
Oct-98 47.40 17.20
Nov-98 54.50 18.40
Dec-98 68.30 18.80
Jan-99 63.90 18.70
Feb-99 56.20 18.10
Mar-99 70.00 18.90
Apr-99 56.90 19.40
May-99 57.20 18.80
Jun-99 64.90 19.90
Jul-99 55.70 19.40
Aug-99 60.10 18.60
Sep-99 60.60 18.10
Oct-99 58.40 18.70
Nov-99 71.90 18.70
Dec-99 99.30 19.10
Jan-00 93.50 17.70
Feb-00 121.40 16.60
SOURCE: FRANK RUSSELL COMPANY
The chart above shows that there has been an explosion in the P/E ratios of the
most favored stocks since the fourth quarter of 1999 and more broadly since the
middle of 1998. This coincides precisely with the fund-flow shift in favor of
Growth stocks shown in the prior chart.
The remarkable aspect of the chart above is that stocks selling at
price-earnings ratios of 121.4 and higher are pricing perfection, and reality so
often falls short. Thus, 20% of the U.S. market capitalization is concentrated
in stocks with extremely optimistic growth expectations. Whereas we agree that
the New Economy offers the potential to improve the quality of life for
everyone, we doubt that all companies in these favored industries will be able
to produce "perfect" earnings growth. Rather, we believe that a few companies
will succeed but most will face competition and unforeseen obstacles that will
make their present prices appear too optimistic. That is why we emphasize the
ESTREND(TRADEMARK) model when selecting among New Economy stocks, to endeavor to
avoid those companies where disappointments lurk.
FUND RETURNS THROUGH FEBRUARY 29, 2000
The six month return through February 29, 2000 for the N/I MICRO CAP FUND was
+46.77%, compared to its benchmark, the Russell 2000 Growth Index, an unmanaged
index of smaller capitalization Growth stocks, which returned +66.04%. We
believe that the Fund's disappointing returns relative to its benchmark were
primarily due to under exposure to the Internet and Biotech industries. Over the
one-year period ended February 29, 2000, the N/I MICRO CAP FUND'S return was
+73.64% versus +84.06% for the benchmark. It appears that weak performance in
the most recent six-month period more than erased good relative returns during
the prior six months. Since inception on June 3, 1996, the Fund's annualized
return has been +31.61% versus +17.95% for the Russell 2000 Growth Index.
The six month return through February 29, 2000 for the N/I GROWTH FUND was
+60.15%, compared to its benchmark, the Russell 2500 Growth Index, an unmanaged
index of smaller capitalization Growth stocks, which returned +75.38%. We
believe that the Fund's disappointing returns relative to its benchmark also
were primarily due to under exposure to the Internet and Biotech industries.
Over the one-year period ended February 29, 2000, the N/I GROWTH FUND'S return
was +95.94% versus +105.48% for the benchmark. Since inception on June 3, 1996,
the Fund's annualized return has been +25.76% versus +23.90% for the Russell
2500 Growth Index.
The six month return through February 29, 2000 for the N/I MID CAP FUND
(formerly n/i Growth & Value Fund) was +10.66%, compared to its benchmark, the
S&P MidCap 400 Index, an unmanaged index of medium capitalization Growth stocks,
which returned +18.09%. We believe that the Fund's disappointing returns
relative to its benchmark were due primarily to poor performance in the FAIR
VALUE model. Over the one-year period ended February 29, 2000, the N/I MID CAP
FUND'S return was +27.06% versus +30.96% for the benchmark. Since inception on
June 3, 1996, the Fund's annualized return has been +21.11% versus +20.65% for
the S&P MidCap 400 Index.
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The six month return through February 29, 2000 for the N/I LARGER CAP VALUE FUND
was -20.86%, compared to its benchmark, the Russell 1000 Value Index, an
unmanaged index of larger capitalization stocks with value characteristics,
which returned -8.88%. We believe that the Fund's disappointing returns relative
to its benchmark were due primarily to the extremely poor environment for value
investing and poor performance in the FAIR VALUE model. Over the one-year period
ended February 29, 2000, the N/I LARGER CAP VALUE FUND'S return was -15.78%
versus -3.27% for the benchmark. Since inception on December 9, 1997, the Fund's
annualized return has been -4.58% versus +4.77% for the Russell 1000 Value
Index.
The six month return through February 29, 2000 for the N/I SMALL CAP VALUE FUND
was -12.72%, compared to its benchmark, the Russell 2000 Value Index, an
unmanaged index of smaller capitalization stocks with value characteristics,
which returned 2.82%. Over the one-year period ended February 29, 2000, the N/I
SMALL CAP VALUE FUND'S return was -0.31% versus 11.80% for the benchmark. We
believe that the Fund's disappointing returns relative to its benchmark were due
to the extremely poor environment for value investing and some specific stocks
in the Biotech sector that accounted for much of the benchmark's return. Since
inception on November 30, 1998, the Fund's annualized return has been -5.20%
versus +3.97% for the Russell 2000 Value Index.
GOING FORWARD
We approach the future with increasing optimism about your Funds' ability to
again generate positive returns relative to their benchmarks. Of course there
can be no guarantee that these positive relative returns will be achieved and
there can be no assurance whatever that a portfolio of stocks will not decline
in the face of a falling market. Still, we have two reasons to feel optimistic.
First, we believe the tone of the market has improved for our processes since
the end of February. As we write this letter in early April, we note that
performance during the month of March for four of the five N/I NUMERIC INVESTORS
Funds was significantly ahead of their respective benchmarks. We are gratified
that the market has stopped rewarding narrow, speculative sectors of the market
as of the date of this letter and we are optimistic that flows and prices will
rationalize the wide spreads in valuations between New and Old Economy stocks.
Second, we have made an important but small modification to our portfolio
construction rules which we believe should reduce the variation of the Funds'
returns from their benchmarks' returns and reduce our exposure to the difference
between New and Old Economy stocks. Specifically, we now endeavor to limit each
Fund's exposure to any industry to be within 3% of the industry's weight in the
Fund's benchmark. We believe that the market appears to be adjusting the prices
of Internet stocks to reflect changing earnings expectations, so we can use our
ESTREND(TRADEMARK) model to select stocks in this industry. In Biotech stocks
where our models are less powerful, we intend to buy a diversified basket of
stocks in an attempt to keep each Fund's industry exposure from falling more
than 3% below the exposure of the Fund's benchmark.
On a separate note, as some of you are aware, the Board of Directors of the Fund
recently recommended that the N/I LARGER CAP VALUE FUND be liquidated and
terminated. The reason for this is that it will be very difficult to manage a
diversified portfolio if assets decline further. Total Fund assets on April 7th
were $1.5 million. We regret that this recommendation had to be made but believe
that it is in the best interests of shareholders.
Thank you for your support and confidence.
Sincerely,
/S/ L B Wheeler
Langdon B. Wheeler, CFA
President
Numeric Investors L.P.(REGISTRATION MARK)
6
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMMON STOCKS--96.7%
ADVERTISING--0.5%
24,400 ADVO, Inc.*/** ................................ $ 677,100
------------
APPAREL--0.1%
4,400 Kellwood Co. .................................. 74,250
------------
ATHLETIC EQUIPMENT--0.4%
21,100 Direct Focus, Inc.* ........................... 589,481
------------
AUTOMOBILE PARTS & EQUIPMENT--0.9%
40,100 American Axle & Manufacturing
Holdings, Inc.* ............................. 558,894
28,800 Copart, Inc.* ................................. 605,700
------------
1,164,594
------------
AUTOMOBILE RENTALS--0.4%
42,000 Dollar Thrifty Automotive Group,
Inc.*/** .................................... 551,250
------------
BANKS--1.4%
49,300 East West Bancorp, Inc. ....................... 619,331
13,000 GBC Bancorp** ................................. 351,000
12,000 Greater Bay Bancorp** ......................... 471,000
5,900 Silicon Valley Bancshares* .................... 467,575
------------
1,908,906
------------
BEVERAGES--1.0%
7,300 Canandaigua Brands, Inc., Class A* ............ 357,700
28,800 Celestial Seasonings, Inc.* ................... 748,800
5,500 Robert Mondavi Corp., Class A * ............... 201,438
------------
1,307,938
------------
BUSINESS SERVICES--4.0%
13,400 Boron, Lepore & Associates, Inc.* ............. 114,737
8,500 Cognizant Technology Solutions Corp.* ......... 927,562
10,050 Diamond Technology Partners Inc.* ............. 687,169
22,500 F.Y.I. Inc.*/** ............................... 669,375
9,600 Forrester Research, Inc.*/** .................. 384,000
37,400 InterCept Group, Inc. (The)* .................. 906,950
11,600 Meta Group, Inc.*/** .......................... 359,600
3,900 Plexus Corp.*/** .............................. 220,228
27,900 Quanta Services, Inc.*/** ..................... 1,129,950
------------
5,399,571
------------
COMPUTER COMPONENTS--1.9%
9,200 Advanced Digital Information Corp.* ........... 833,750
6,300 Documentum, Inc.*/** .......................... 475,256
38,700 Integrated Measurement System, Inc.*/** ....... 846,562
7,200 Silicon Storage Technology, Inc.* ............. 454,500
------------
2,610,068
------------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMPUTER DATA SECURITY--0.2%
3,200 ISS Group, Inc.* .............................. $ 336,000
------------
COMPUTER GRAPHICS--0.5%
10,400 NVIDIA Corp.* ................................. 665,600
------------
COMPUTER NETWORKING PRODUCTS--2.4%
24,900 Apex Inc.* .................................... 1,117,387
9,700 Black Box Corp.* .............................. 725,681
30,700 Objective Systems Integrators, Inc.* .......... 590,975
5,800 Proxim, Inc.* ................................. 832,300
------------
3,266,343
------------
COMPUTER PERIPHERAL EQUIPMENT--2.6%
28,950 Cybex Computer Products Corp.* ................ 1,346,175
32,500 In Focus Systems, Inc.* ....................... 1,088,750
64,000 Splash Technology Holdings, Inc.* ............. 1,056,000
------------
3,490,925
------------
COMPUTER SERVICES--1.6%
8,000 Brio Technology, Inc.* ........................ 320,500
32,900 Pomeroy Computer Resources, Inc.* ............. 538,737
5,612 Wind River Systems, Inc.* ..................... 325,847
20,700 Zomax Inc.* ................................... 1,013,006
------------
2,198,090
------------
COMPUTER SOFTWARE--10.3%
48,200 3DO Co. (The)*/** ............................. 723,000
1,400 Allaire Corp.* ................................ 181,125
14,700 Aspen Technology, Inc.* ....................... 657,825
39,700 AVT Corp.*/** ................................. 1,049,569
29,700 CACI International Inc.* ...................... 844,594
9,900 click2learn.com, Inc.* ........................ 164,587
37,800 Continuus Software Corp.* ..................... 370,912
11,000 CyberCash, Inc.* .............................. 115,500
7,300 DSET Corp.*/** ................................ 182,500
9,900 Interliant Inc.* .............................. 424,462
11,600 InterVoice-Brite, Inc.* ....................... 419,050
5,300 Kronos, Inc.*/** .............................. 336,550
11,300 Logility, Inc. * .............................. 180,800
19,500 MapInfo Corp.* ................................ 672,750
9,600 Mercury Computer Systems, Inc.* ............... 462,600
3,100 NetIQ Corp.*/** ............................... 208,087
15,400 NetScout Systems, Inc.* ....................... 316,662
12,100 Pinnacle Systems, Inc.* ....................... 606,512
1,600 Primus Knowledge Solutions, Inc.* ............. 192,000
31,400 Progress Software Corp.* ...................... 783,037
4,000 Proxicom, Inc.* ............................... 167,500
6,900 Radiant Systems, Inc.* ........................ 352,762
26,600 SERENA Software, Inc.* ........................ 1,122,187
70,000 Take-Two Interactive Software, Inc.*/** ....... 870,625
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMPUTER SOFTWARE--(CONTINUED)
10,700 TenFold Corp.*/** ............................. $ 537,006
32,700 Voyager.net, Inc.* ............................ 351,525
9,300 WebTrends Corp.* .............................. 883,500
25,300 Unigraphics Solutions Inc.*/** ................ 700,494
------------
13,877,721
------------
CONSTRUCTION--0.2%
12,100 Centex Construction Products, Inc. ............ 281,325
------------
ELECTRICAL EQUIPMENT--3.5%
18,200 Applied Science & Technology, Inc.* ........... 629,037
9,600 Brooktrout, Inc.* ............................. 460,800
20,200 C&D Technologies, Inc. ........................ 944,350
2,900 Credence Systems Corp.* ....................... 386,425
23,900 CyberOptics Corp.* ............................ 878,325
8,100 Cymer, Inc.* .................................. 444,487
3,300 Power-One, Inc.* .............................. 162,112
16,900 Salton, Inc.*/** .............................. 796,412
------------
4,701,948
------------
ELECTRONIC COMPONENTS & ACCESSORIES--2.3%
21,600 Electro Scientific Industries, Inc.* .......... 1,224,450
11,500 MKS Instruments, Inc.* ........................ 523,250
16,400 Pioneer-Standard Electronics, Inc.** .......... 301,350
18,000 Technitrol, Inc. .............................. 843,750
3,233 Three-Five Systems, Inc.* ..................... 198,425
------------
3,091,225
------------
ELECTRONICS--1.0%
14,500 Applied Films Corp.* .......................... 424,125
16,600 Cohu, Inc. .................................... 935,825
------------
1,359,950
------------
ELECTRONICS - INSTRUMENTS--1.4%
12,600 Anaren Microwave, Inc.*/** .................... 956,025
49,400 FEI Co. ....................................... 994,175
------------
1,950,200
------------
ENVIRONMENTAL SERVICES--0.8%
43,600 Tetra Tech, Inc.*/** .......................... 1,092,725
------------
FINANCIAL SERVICES--1.5%
38,700 Advanta Corp., Class A** ...................... 720,787
21,600 Doral Financial Corp. ......................... 211,950
8,000 DVI Financial Corp.* .......................... 118,000
45,100 LaBranche & Co. Inc.* ......................... 546,837
20,900 Triad Guaranty Inc.*/** ....................... 438,900
------------
2,036,474
------------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
FOOD & AGRICULTURE--0.9%
42,800 Del Monte Foods Co.*/** ....................... $ 535,000
17,600 Hain Food Group, Inc. (The)* .................. 646,800
------------
1,181,800
------------
HEALTH CARE--0.8%
41,100 RehabCare Group, Inc.* ........................ 1,104,562
------------
HOSPITALS--0.6%
52,800 LifePoint Hospitals, Inc.* .................... 795,300
------------
HOUSEHOLD PRODUCTS--0.5%
23,600 Libbey Inc. ................................... 634,250
------------
INDUSTRIAL MACHINERY--0.7%
9,300 Brooks Automation, Inc.* ...................... 671,925
16,000 Lincoln Electric Holdings, Inc. ............... 312,000
------------
983,925
------------
INSURANCE - BROKER--0.4%
70,700 Quotesmith.com, Inc.* ......................... 503,737
------------
INSURANCE - HEALTH & LIFE--0.6%
3,700 Nationwide Financial Services, Inc.,
Class A ..................................... 85,331
27,400 StanCorp Financial Group, Inc. ................ 674,725
------------
760,056
------------
INSURANCE - PROPERTY & CASUALTY--0.4%
46,700 CNA Surety Corp. .............................. 531,212
------------
INTERNET SOFTWARE--1.2%
7,400 About.com, Inc.*/** ........................... 519,850
300 Chordiant Software, Inc. */** ................. 10,500
200 DigitalThink, Inc. * .......................... 8,150
1,300 Go2Net, Inc.* ................................. 113,100
100 net.Genesis Corp. * ........................... 5,619
30,400 Quokka Sports, Inc.*/** ....................... 383,800
3,300 SportsLine.com, Inc. * ........................ 152,213
43,700 Women.com Networks, Inc. */** ................. 434,269
------------
1,627,501
------------
INVESTMENT ADVICE--0.3%
18,100 BlackRock, Inc.* .............................. 392,544
------------
LABORATORY ANALYTICAL INSTRUMENTS--0.5%
15,300 Varian Inc.* .................................. 610,087
------------
LEISURE & ENTERTAINMENT--0.4%
13,700 Anchor Gaming* ................................ 570,262
------------
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
MACHINERY--1.4%
7,600 Asyst Technologies, Inc.* ..................... $ 348,650
5,000 Helix Technology Corp.** ...................... 355,625
11,400 Kulicke & Soffa Industries, Inc.* ............. 906,300
16,400 United Dominion Industries Ltd. ............... 302,375
------------
1,912,950
------------
MANUFACTURING--0.5%
46,800 ESCO Electronics Corp.* ....................... 702,000
------------
MEDICAL INSTRUMENTS & SUPPLIES--6.2%
19,600 Albany Molecular Research, Inc.* .............. 945,700
70,650 Candela Corp., Inc.*/** ....................... 1,059,750
4,100 Cooper Companies, Inc. (The) .................. 112,494
17,700 Datascope Corp. ............................... 705,787
16,200 Endocare, Inc.*/** ............................ 292,612
20,600 INAMED Corp.* ................................. 780,225
6,700 Mentor Corp. .................................. 185,925
25,900 PolyMedica Corp.*/** .......................... 1,199,494
14,300 ResMed Inc.*/** ............................... 1,067,137
27,400 SurModics, Inc.* .............................. 849,400
8,900 Wesley Jessen VisionCare, Inc.* ............... 255,875
16,500 Zoll Medical Corp.*/** ........................ 858,000
------------
8,312,399
------------
MEDICAL & MEDICAL SERVICES--1.9%
12,800 IDEXX Laboratories, Inc.* ..................... 378,400
4,900 Invitrogen Corp.* ............................. 414,050
20,400 MedQuist Inc.* ................................ 525,300
24,000 Mid Atlantic Medical Services, Inc.* .......... 196,500
15,600 Pharmacopeia, Inc.*/** ........................ 1,061,775
------------
2,576,025
------------
METAL FABRICATING--0.4%
47,400 Intermet Corp.** .............................. 533,250
------------
MOTOR HOMES--0.3%
22,400 Monaco Coach Corp.* ........................... 403,200
------------
OFFICE & BUSINESS EQUIPMENT--0.5%
23,500 United Stationers Inc.* ....................... 631,563
------------
OIL & GAS FIELD EXPLORATION--2.6%
19,100 Atwood Oceanics, Inc.* ........................ 1,014,688
85,700 Key Energy Services, Inc.* .................... 851,644
4,200 SEACOR SMIT Inc.*/** .......................... 203,700
33,900 UTI Energy Corp.*/** .......................... 1,086,919
27,900 Vintage Petroleum, Inc. ....................... 404,550
------------
3,561,501
------------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
OPTICAL INSTRUMENTS & LENSES--1.0%
10,300 Meade Instruments Corp.* ...................... $ 243,338
65,400 Robotic Vision Systems, Inc.*/** .............. 1,144,500
------------
1,387,838
------------
PAPER & ALLIED PRODUCTS--0.5%
50,800 Schweitzer-Mauduit International, Inc. ........ 692,150
------------
PHARMACEUTICALS--3.5%
18,200 Alpharma Inc., Class A** ...................... 630,175
51,800 Bindley Western Industries, Inc. .............. 890,313
13,000 Biomatrix, Inc.*/** ........................... 381,875
10,200 COR Therapeutics, Inc.*/** .................... 914,175
10,600 Corixa Corp.* ................................. 736,038
12,800 GelTex Pharmaceuticals, Inc.* ................. 280,800
4,100 King Pharmaceuticals, Inc.*/** ................ 195,519
30,200 Ligand Pharmaceuticals, Inc., Class B* ........ 656,850
------------
4,685,745
------------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--0.8%
26,800 Concord Camera Corp.* ......................... 1,011,700
------------
RECREATIONAL--0.3%
15,200 SCP Pool Corp.* ............................... 377,150
------------
RESIDENTIAL CONSTRUCTION--0.4%
52,000 Standard Pacific Corp.** ...................... 552,500
------------
RESTAURANTS--0.7%
6,700 P.F. Chang's China Bistro, Inc.* .............. 201,419
38,500 RARE Hospitality International, Inc.* ......... 726,688
------------
928,107
------------
RETAIL - CATALOG & MAIL ORDER HOUSES--0.0%
6,900 Sharper Image Corp.* .......................... 62,100
------------
RETAIL - COMPUTER EQUIPMENT--1.0%
41,300 Electronics Boutique Holdings Corp.*/** ....... 604,013
27,500 PC Connection, Inc.* .......................... 723,594
------------
1,327,607
------------
RETAIL - DEPARTMENT STORES--0.1%
10,100 Ames Department Stores, Inc.*/** .............. 142,663
------------
RETAIL - FAMILY CLOTHING STORES--0.5%
29,100 Factory 2-U Stores Inc.*/** ................... 705,675
------------
RETAIL - INTERNET--0.2%
26,700 Cyberian Outpost, Inc.*/** .................... 235,294
7,800 VarsityBooks.com Inc.*/** ..................... 68,250
------------
303,544
------------
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
RETAIL - JEWELRY STORES--0.4%
28,100 Whitehall Jewellers, Inc.*/** ................. $ 549,706
------------
RETAIL - LUMBER & OTHER BUILDING MATERIALS--0.3%
35,600 Building Materials Holding Corp.*/** .......... 357,113
------------
RETAIL - SHOE STORES--0.2%
20,600 Brown Shoe Company, Inc. ...................... 216,300
------------
RETAIL - SPECIALTY--0.6%
14,300 CSK Auto Corp.* ............................... 164,450
37,900 Hot Topic, Inc.*/** ........................... 644,300
------------
808,750
------------
RETAIL - SPECIALTY APPAREL--2.3%
42,700 Braun's Fashion Corp.* ........................ 640,500
12,200 Cato Corp. (The), Class A ..................... 122,000
6,400 Columbia Sportswear Co.* ...................... 133,200
30,900 Deb Shops, Inc. ............................... 478,950
13,700 Gadzooks, Inc.* ............................... 218,344
31,800 Guess?, Inc.* ................................. 677,737
8,500 Kenneth Cole Productions, Inc.,
Class A*/** ................................. 433,500
11,800 Pacific Sunwear of California, Inc.*/** ....... 300,163
4,800 Wilsons, The Leather Experts, Inc. * .......... 122,400
------------
3,126,794
------------
SCHOOLS--1.7%
7,400 Bright Horizons Family Solutions,
Inc.*/** .................................... 124,875
40,300 Corinthian Colleges, Inc.* .................... 720,363
47,100 Education Management Corp.* ................... 612,300
31,000 Learning Tree International, Inc.* ............ 825,375
------------
2,282,913
------------
SEMICONDUCTORS--6.2%
3,200 Alpha Industries, Inc.* ....................... 464,600
3,900 Cree, Inc.* ................................... 732,713
15,800 Elantec Semiconductor, Inc* ................... 994,413
25,400 Electroglas, Inc.* ............................ 984,250
35,500 Integrated Silicon Solution, Inc.* ............ 987,344
10,200 International Rectifier Corp.* ................ 427,125
8,300 inTEST Corp.* ................................. 207,500
20,900 Pericom Semiconductor Corp.* .................. 862,125
26,300 Silicon Valley Group, Inc.* ................... 665,719
30,000 TelCom Semiconductor, Inc.* ................... 663,750
5,800 TriQuint Semiconductor, Inc.*/** .............. 688,750
12,700 Varian Semiconductor Equipment
Associates, Inc.* ........................... 738,188
------------
8,416,477
------------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
SERVICES - COMPUTER INTEGRATED SYSTEM
DESIGN--0.4%
4,900 Cysive, Inc. */** ............................. $ 524,300
------------
SERVICES - EMPLOYMENT AGENCIES--1.3%
39,000 Hall Kinion & Associates, Inc.* ............... 702,000
15,800 Korn/Ferry International* ..................... 592,500
18,500 RemedyTemp, Inc.* ............................. 411,625
------------
1,706,125
------------
SERVICES - HEALTH CARE MANAGEMENT--1.2%
28,800 Accredo Health, Inc.* ......................... 849,600
7,750 Dendrite International, Inc.* ................. 190,844
26,000 Professional Detailing, Inc.*/** .............. 559,000
------------
1,599,444
------------
SERVICES - MANAGEMENT CONSULTING--0.6%
17,200 MAXIMUS, Inc.* ................................ 588,025
7,100 Xceed Inc.*/** ................................ 222,763
------------
810,788
------------
TELECOMMUNICATIONS--4.0%
29,900 Altigen Communications, Inc.*/** .............. 596,131
24,200 Gentner Communications Corp.* ................. 567,188
15,900 Latitude Communications, Inc.* ................ 335,888
31,800 Lightbridge, Inc.* ............................ 751,275
30,200 LodgeNet Entertainment Corp.* ................. 796,525
15,800 MasTec, Inc.* ................................. 910,475
25,100 TALK.com, Inc.* ............................... 423,563
15,400 XETA Corp.*/** ................................ 950,950
------------
5,331,995
------------
TELECOMMUNICATIONS EQUIPMENT--4.7%
6,200 Active Voice Corp.* ........................... 340,225
11,600 Carrier Access Corp.*/** ...................... 658,300
25,100 Centigram Communications Corp.* ............... 517,688
33,300 Corsair Communications, Inc.* ................. 949,050
2,800 Powerwave Technologies, Inc.* ................. 447,650
2,400 Rural Cellular Corp., Class A* ................ 132,600
19,300 ScanSource, Inc., Class A* .................... 733,400
9,900 Somera Communications, Inc. * ................. 129,319
21,400 SpectraLink Corporation*/** ................... 623,275
11,150 Tollgrade Communications, Inc.*/** ............ 1,128,938
19,700 Westell Technologies, Inc., Class A*/** ....... 674,725
------------
6,335,170
------------
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
TOYS--0.8%
53,500 Equity Marketing, Inc.* ....................... $ 541,688
34,200 JAKKS Pacific, Inc.* .......................... 564,300
------------
1,105,988
------------
TRANSPORTATION--1.1%
28,050 Forward Air Corp.* ............................ 645,150
65,500 Frontier Airlines, Inc.* ...................... 728,688
3,100 Landstar System, Inc.* ........................ 174,181
------------
1,548,019
------------
VITAMINS & NUTRITION PRODUCTS--0.6%
54,000 Rexall Sundown, Inc.*/** ...................... 810,000
------------
WHOLESALE - DRUG DISTRIBUTION--0.8%
9,600 AmeriSource Health Corp., Class A* ............ 139,800
18,300 Priority Healthcare Corp., Class B* ........... 878,400
------------
1,018,200
------------
WHOLESALE - SPECIALTY EQUIPMENT--0.5%
49,600 Brightpoint, Inc.*/** ......................... 638,600
------------
Total Common Stocks
(Cost $99,980,450) .......................... 130,323,269
------------
- -----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (000's) (NOTE 1)
- -----------------------------------------------------------------------
REPURCHASE AGREEMENT--2.7%
$3,703 Bear, Stearns & Co. Inc.
(Agreement dated 02/29/00 to be
repurchased at $3,703,996)
5.76%, 03/01/00
(Cost $3,703,403) (Note 6) .................. $ 3,703,403
------------
Total Investments -- 99.4%
(Cost $103,683,853) ......................... 134,026,672
------------
Other Assets in Excess
of Liabilities -- 0.6% ...................... 775,992
------------
Net Assets -- 100.0% .......................... $134,802,664
============
- --------------
* Non-income producing.
** Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMMON STOCKS--98.5%
ADVERTISING--0.5%
7,000 ADVO, Inc.* ................................... $ 194,250
100 Avenue A, Inc.* ............................... 7,200
1,700 TMP Worldwide Inc.*/** ........................ 231,094
-----------
432,544
-----------
AEROSPACE--0.1%
1,100 Cordant Technologies, Inc. .................... 35,612
-----------
AMUSEMENT & RECREATIONAL SERVICES--0.3%
7,400 Polaris Industries, Inc. ...................... 226,625
-----------
AUTOMOBILE PARTS & EQUIPMENT--0.7%
1,900 Arvin Industries, Inc. ........................ 34,912
12,300 Copart, Inc.* ................................. 258,684
18,100 Meritor Automotive, Inc. ...................... 253,400
-----------
546,996
-----------
AUTOMOBILE RENTALS--0.5%
8,200 Avis Rent A Car, Inc.* ........................ 119,412
18,300 Dollar Thrifty Automotive Group, Inc.* ........ 240,187
1,500 Hertz Corp. (The), Class A** .................. 53,719
-----------
413,318
-----------
BANKS--0.1%
5,150 Hudson United Bancorp ......................... 103,966
-----------
BEVERAGES--0.3%
4,800 Canandaigua Brands, Inc., Class A* ............ 235,200
-----------
BUILDING SUPPLIES--0.1%
2,200 Lafarge Corp. ................................. 43,312
-----------
BUSINESS SERVICES--2.6%
2,800 Cognizant Technology Solutions Corp.* ......... 305,550
11,200 CSG Systems International, Inc.* .............. 575,400
7,700 Diamond Technology Partners Inc.* ............. 526,487
7,100 InterCept Group, Inc. (The)* .................. 172,175
11,900 Quanta Services, Inc.*/** ..................... 481,950
-----------
2,061,562
-----------
CHEMICALS - DIVERSIFIED--0.1%
1,200 FMC Corp.* .................................... 57,975
-----------
CHEMICALS - SPECIALTY--0.4%
3,200 Cytec Industries Inc.* ........................ 77,600
25,600 W.R. Grace & Co.* ............................. 257,600
-----------
335,200
-----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMPUTER COMPONENTS--1.9%
4,000 Advanced Digital Information Corp.* ........... $ 362,500
5,850 Microchip Technology, Inc.* ................... 365,259
6,100 SanDisk Corp.* ................................ 542,900
3,200 Silicon Storage Technology, Inc.* ............. 202,000
-----------
1,472,659
-----------
COMPUTER DATA SECURITY--2.3%
5,400 ISS Group, Inc.* .............................. 567,000
5,000 VeriSign, Inc.* ............................... 1,265,000
-----------
1,832,000
-----------
COMPUTER GRAPHICS--0.6%
7,000 NVIDIA Corp.* ................................. 448,000
-----------
COMPUTER HARDWARE--0.2%
1,700 Symbol Technologies, Inc. ..................... 161,712
-----------
COMPUTER NETWORKING PRODUCTS--6.1%
4,400 Adaptec, Inc.* ................................ 180,400
6,500 Apex Inc.* .................................... 291,687
7,200 Black Box Corp.* .............................. 538,650
2,000 Brocade Communications Systems, Inc.* ......... 578,250
4,700 Emulex Corp.* ................................. 752,000
3,600 Extreme Networks, Inc.* ....................... 400,500
600 Juniper Networks, Inc.* ....................... 164,587
9,000 Network Appliance, Inc.* ...................... 1,698,750
1,300 Proxim, Inc.* ................................. 186,550
1,400 Xircom, Inc.* ................................. 58,144
-----------
4,849,518
-----------
COMPUTER PERIPHERAL EQUIPMENT--1.6%
2,700 CDW Computer Centers, Inc.* ................... 148,162
6,650 Cybex Computer Products Corp.* ................ 309,225
12,300 In Focus Systems, Inc.* ....................... 412,050
5,900 Insight Enterprises, Inc.* .................... 185,112
11,300 Splash Technology Holdings, Inc.* ............. 186,450
-----------
1,240,999
-----------
COMPUTER SERVICES--0.8%
700 Breakaway Solutions, Inc.*/** ................. 87,500
2,800 Tanning Technology Corp.* ..................... 120,750
9,600 Zomax Inc.* ................................... 469,800
-----------
678,050
-----------
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMPUTER SOFTWARE--15.9%
7,900 3DO Co. (The)* ................................ $ 118,500
2,400 Adobe Systems Inc. ............................ 244,800
800 Allaire Corp.* ................................ 103,500
4,800 AppNet, Inc.* ................................. 215,400
5,300 Aspen Technology, Inc.* ....................... 237,175
9,000 AVT Corp.* .................................... 237,937
11,200 BEA Systems, Inc.* ............................ 1,417,500
4,900 BroadVision, Inc.*/** ......................... 1,237,556
1,900 BSQUARE Corp.*/** ............................. 75,762
1,200 Clarent Corp.* ................................ 131,100
1,500 Clarify, Inc.* ................................ 216,469
4,500 Exodus Communications, Inc.* .................. 640,687
1,400 Informatica Corp.* ............................ 240,100
11,800 Mercury Interactive Corp.* .................... 1,137,225
5,800 Micromuse Inc.*/** ............................ 822,512
1,100 NetIQ Corp.*/** ............................... 73,837
6,000 Pinnacle Systems, Inc.* ....................... 300,750
2,400 Portal Software, Inc.* ........................ 180,300
4,200 Proxicom, Inc.* ............................... 175,875
7,600 Rational Software Corp.* ...................... 540,550
5,900 Razorfish Inc.*/** ............................ 197,650
1,000 RealNetworks, Inc.* ........................... 70,312
11,300 Remedy Corp.* ................................. 640,569
1,200 Scient Corp.* ................................. 84,900
13,300 SERENA Software, Inc.* ........................ 561,094
4,600 Siebel Systems, Inc.* ......................... 637,962
17,400 Take-Two Interactive Software, Inc.*/** ....... 216,412
1,300 TenFold Corp.* ................................ 65,244
5,850 THQ Inc.* ..................................... 118,097
2,400 TIBCO Software Inc.*/** ....................... 314,400
3,350 VERITAS Software Corp.* ....................... 662,881
11,500 Viant Corp.* .................................. 436,281
3,500 WebTrends Corp.* .............................. 332,500
-----------
12,685,837
-----------
CONSTRUCTION--0.1%
2,900 Centex Construction Products, Inc. ............ 67,425
-----------
ELECTRICAL EQUIPMENT--1.8%
2,100 Applied Science & Technology, Inc.* ........... 72,581
6,300 C&D Technologies, Inc. ........................ 294,525
1,800 Credence Systems Corp.* ....................... 239,850
2,800 Cymer, Inc.* .................................. 153,650
2,300 KEMET Corp.* .................................. 141,306
11,400 Salton, Inc.*/** .............................. 537,225
-----------
1,439,137
-----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
ELECTRONIC COMPONENTS & ACCESSORIES--5.5%
1,600 Amphenol Corp., Class A* ...................... $ 127,900
2,300 ANADIGICS, Inc.* .............................. 310,500
4,400 Applied Micro Circuits Corp.*/** .............. 1,210,275
3,900 Cable Design Technologies Corp.* .............. 90,187
10,300 Conexant Systems, Inc.* ....................... 1,011,975
5,800 Electro Scientific Industries, Inc.* .......... 328,787
3,000 Jabil Circuit, Inc.* .......................... 208,312
2,400 RF Micro Devices, Inc.* ....................... 331,950
6,400 Sawtek Inc.* .................................. 307,200
500 Technitrol, Inc. .............................. 23,437
3,500 TranSwitch Corp.* ............................. 411,250
1,500 Vishay Intertechnology, Inc.* ................. 64,500
-----------
4,426,273
-----------
ELECTRONICS--0.6%
3,000 Cohu, Inc. .................................... 169,125
3,000 DSP Group, Inc.* .............................. 263,438
700 Polycom, Inc. ................................. 81,419
-----------
513,982
-----------
ENVIRONMENTAL SERVICES--0.1%
4,100 Tetra Tech, Inc.* ............................. 102,756
-----------
FINANCIAL SERVICES--1.3%
1,000 Bank United Corp., Class A .................... 26,187
4,600 Doral Financial Corp. ......................... 45,137
11,300 Edwards (A.G.), Inc. .......................... 358,069
2,900 Knight/ Trimark Group, Inc.* .................. 135,938
9,600 Metris Companies Inc.** ....................... 248,400
2,900 Neuberger Berman, Inc. ........................ 74,675
7,700 Profit Recovery Group International,
Inc. (The)*/** .............................. 142,450
-----------
1,030,856
-----------
FOOD & AGRICULTURE--1.5%
3,400 Dean Foods Co. ................................ 92,225
13,700 Fleming Companies, Inc. ....................... 211,494
4,900 Hain Food Group, Inc. (The)* .................. 180,075
14,700 International Home Foods, Inc.* ............... 248,981
6,400 Keebler Foods Co.* ............................ 162,400
4,100 Suiza Foods Corp.*/** ......................... 160,412
8,300 Universal Foods Corp. ......................... 149,919
-----------
1,205,506
-----------
HEALTH CARE--0.4%
3,800 PacifiCare Health Systems, Inc.* .............. 172,662
2,200 Wellpoint Health Networks Inc.*/** ............ 148,500
-----------
321,162
-----------
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
HOME FURNISHINGS/HOUSEWARES--0.7%
26,900 Furniture Brands International, Inc.* ......... $ 432,081
4,000 Mohawk Industries, Inc.*/** ................... 88,750
-----------
520,831
-----------
HOSPITALS--0.1%
5,400 LifePoint Hospitals, Inc.* .................... 81,337
-----------
HOUSEHOLD PRODUCTS--0.2%
6,500 Libbey Inc. ................................... 174,687
-----------
INDUSTRIAL MACHINERY--0.2%
1,800 Brooks Automation, Inc.* ...................... 130,050
2,700 Terex Corp.*/** ............................... 32,062
-----------
162,112
-----------
INSURANCE - FINANCIAL GUARANTEE--1.0%
7,900 MGIC Investment Corp. ......................... 295,262
7,250 PMI Group, Inc. (The) ......................... 263,266
6,200 Radian Group Inc. ............................. 215,062
-----------
773,590
-----------
INSURANCE - HEALTH & LIFE--0.2%
1,400 MONY Group Inc. (The) ......................... 40,075
5,600 StanCorp Financial Group, Inc. ................ 137,900
-----------
177,975
-----------
INTERNET CONTENT--2.6%
1,200 About.com, Inc.*/** ........................... 84,300
100 DigitalThink, Inc.* ........................... 4,075
2,600 DoubleClick Inc.* ............................. 230,912
3,400 Go2Net, Inc.* ................................. 295,800
1,900 HomeStore.com, Inc.* .......................... 129,794
2,800 InfoSpace.com, Inc.* .......................... 607,600
100 net.Genesis Corp.* ............................ 5,681
1,400 Network Solutions, Inc.* ...................... 451,412
1,200 VerticalNet, Inc.*/** ......................... 264,000
-----------
2,073,574
-----------
INTERNET SOFTWARE--2.3%
1,300 CacheFlow Inc.* ............................... 158,275
200 Chordiant Software, Inc.*/** .................. 7,000
1,200 E.piphany, Inc.* .............................. 263,850
2,500 F5 Networks, Inc.* ............................ 225,000
2,000 Inktomi Corp.* ................................ 274,250
5,700 Intraware, Inc.* .............................. 435,694
100 Niku Corp.* ................................... 6,900
1,800 Vignette Corp.* ............................... 414,900
300 Vitria Technology, Inc.* ...................... 56,587
-----------
1,842,456
-----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
LABORATORY ANALYTICAL INSTRUMENTS--0.2%
4,900 Varian Inc.* .................................. $ 195,388
-----------
LEISURE & ENTERTAINMENT--0.7%
1,200 Anchor Gaming* ................................ 49,950
2,600 Macrovision Corp.* ............................ 259,350
11,300 Station Casinos, Inc.* ........................ 221,762
-----------
531,062
-----------
MACHINERY--2.0%
4,500 Advanced Energy Industries, Inc.*/** .......... 327,375
1,800 Asyst Technologies, Inc.* ..................... 82,575
2,700 Helix Technology Corp.** ...................... 192,037
6,600 Kulicke & Soffa Industries, Inc.* ............. 524,700
4,300 Tecumseh Products Co., Class A** .............. 185,437
3,800 Zebra Technologies Corp., Class A* ............ 252,937
-----------
1,565,061
-----------
MEDICAL INSTRUMENTS & SUPPLIES--4.0%
1,100 Allscripts, Inc.* ............................. 75,900
3,800 Beckman Coulter, Inc. ......................... 182,875
7,300 Biomet, Inc. .................................. 240,900
6,200 Cooper Companies, Inc. (The) .................. 170,113
8,000 INAMED Corp.* ................................. 303,000
2,300 Mallinckrodt Inc. ............................. 56,638
5,200 Mentor Corp. .................................. 144,300
15,800 PolyMedica Corp.*/** .......................... 731,738
9,000 ResMed Inc.*/** ............................... 671,625
3,000 Techne Corp.* ................................. 257,344
7,100 Zoll Medical Corp.* ........................... 369,200
-----------
3,203,633
-----------
MEDICAL & MEDICAL SERVICES--1.9%
1,400 Human Genome Sciences, Inc.* .................. 305,550
900 IDEXX Laboratories, Inc.* ..................... 26,606
1,100 Incyte Pharmaceuticals, Inc.* ................. 303,119
900 Invitrogen Corp.* ............................. 76,050
9,100 MedQuist Inc.* ................................ 234,325
1,400 Millennium Pharmaceuticals, Inc.*/** .......... 364,175
2,700 Pharmacopeia, Inc.*/** ........................ 183,769
-----------
1,493,594
-----------
MOTOR HOMES--0.2%
9,400 Monaco Coach Corp.* ........................... 169,200
-----------
NATURAL GAS - DISTRIBUTION--0.1%
4,000 UGI Corp. ..................................... 75,000
-----------
OFFICE & BUSINESS EQUIPMENT--0.3%
10,400 United Stationers Inc.* ....................... 279,500
-----------
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
OIL EQUIPMENT & SERVICES--0.9%
8,200 BJ Services Co.* .............................. $ 467,913
9,400 ENSCO International Inc. ...................... 284,350
-----------
752,263
-----------
OIL & GAS FIELD EXPLORATION--2.0%
4,500 Atwood Oceanics, Inc.* ........................ 239,063
7,500 Helmerich & Payne, Inc. ....................... 199,688
17,100 Key Energy Services, Inc.* .................... 169,931
13,600 Pioneer Natural Resources Co.* ................ 113,050
2,100 Rowan Companies, Inc. ......................... 52,763
4,500 Tidewater Inc. ................................ 127,406
3,000 USX-Marathon Group ............................ 64,875
8,600 UTI Energy Corp.*/** .......................... 275,738
25,100 Vintage Petroleum, Inc. ....................... 363,950
-----------
1,606,464
-----------
OPTICAL INSTRUMENTS & LENSES--0.3%
14,200 Robotic Vision Systems, Inc.*/** .............. 248,500
-----------
PHARMACEUTICALS--3.1%
10,900 Alpharma Inc., Class A** ...................... 377,413
5,000 Andrx Corp.* .................................. 480,313
4,918 Bindley Western Industries, Inc.* ............. 84,528
4,000 Biogen, Inc.* ................................. 431,750
1,000 Express Scripts, Inc., Class A* ............... 46,063
13,300 IVAX Corp.* ................................... 302,575
4,100 Jones Pharma Inc. ............................. 294,175
9,150 King Pharmaceuticals, Inc.*/** ................ 436,341
1,200 Ligand Pharmaceuticals, Inc., Class B* ........ 26,100
-----------
2,479,258
-----------
PLASTICS--0.4%
19,400 Tupperware Corp. .............................. 333,438
-----------
RESIDENTIAL CONSTRUCTION--0.3%
10,300 D.R. Horton, Inc. ............................. 115,875
4,400 Pulte Corp. ................................... 73,975
8,100 Standard Pacific Corp. ........................ 86,063
-----------
275,913
-----------
RESTAURANTS--0.4%
5,800 Applebee's International, Inc. ................ 163,306
4,800 CEC Entertainment Inc.* ....................... 109,200
3,000 RARE Hospitality International, Inc. .......... 56,625
-----------
329,131
-----------
RETAIL - CATALOG & MAIL ORDER HOUSES--0.1%
7,000 Sharper Image Corp.* .......................... 63,000
-----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
RETAIL - COMPUTER EQUIPMENT--0.5%
8,800 Electronics Boutique Holdings Corp.* .......... $ 128,700
10,800 PC Connection, Inc.* .......................... 284,175
-----------
412,875
-----------
RETAIL - DEPARTMENT STORES--0.3%
14,500 Ames Department Stores, Inc.*/** .............. 204,813
-----------
RETAIL - FAMILY CLOTHING STORES--0.3%
8,500 Factory 2-U Stores Inc.*/** ................... 206,125
-----------
RETAIL - INTERNET--0.3%
800 Chemdex Corp.*/** ............................. 179,900
4,600 VarsityBooks.com Inc.*/** ..................... 40,250
-----------
220,150
-----------
RETAIL - JEWELRY STORES--0.5%
3,600 Tiffany & Co.*/** ............................. 231,075
2,400 Whitehall Jewellers, Inc.* .................... 46,950
3,600 Zale Corp.* ................................... 135,450
-----------
413,475
-----------
RETAIL - SPECIALTY--0.4%
2,250 Cost Plus, Inc.* .............................. 41,766
2,100 Dollar Tree Stores, Inc.*/** .................. 81,506
9,200 Hot Topic, Inc.*/** ........................... 156,400
-----------
279,672
-----------
RETAIL - SPECIALTY APPAREL--1.5%
14,500 American Eagle Outfitters, Inc.* .............. 369,750
7,500 Chico's FAS, Inc.* ............................ 94,688
6,400 Fossil, Inc.* ................................. 145,200
4,400 Guess?, Inc.* ................................. 93,775
3,800 Kenneth Cole Productions, Inc.,
Class A*/** ................................. 193,800
2,800 Men's Wearhouse, Inc. (The)*/** ............... 65,013
9,600 Pacific Sunwear of California, Inc.*/** ....... 244,200
-----------
1,206,426
-----------
SAVINGS & LOAN ASSOCIATIONS--0.1%
3,400 Astoria Financial Corp. ....................... 80,962
-----------
SCHOOLS--0.5%
5,400 Education Management Corp.* ................... 70,200
12,500 Learning Tree International, Inc.* ............ 332,813
-----------
403,013
-----------
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
SEMICONDUCTORS--9.1%
900 Alpha Industries, Inc.* ....................... $ 130,669
10,400 Amkor Technology, Inc.* ....................... 540,150
1,800 Atmel Corp.* .................................. 89,100
3,200 ATMI, Inc.* ................................... 151,000
800 Broadcom Corp., Class A* ...................... 157,900
1,500 Cree, Inc.* ................................... 281,813
5,800 Cypress Semiconductor Corp.* .................. 264,625
5,000 Elantec Semiconductor, Inc.* .................. 314,688
1,800 Electroglas, Inc.* ............................ 69,750
6,400 Fairchild Semiconductor Corp., Class A* ....... 241,600
3,900 GlobeSpan, Inc.*/** ........................... 294,450
3,800 International Rectifier Corp.* ................ 159,125
2,200 Lam Research Corp.*/** ........................ 343,475
9,400 Novellus Systems, Inc.* ....................... 557,538
1,500 Pericom Semiconductor Corp.* .................. 61,875
8,600 PMC-Sierra, Inc.* ............................. 1,660,338
5,000 QLogic Corp.* ................................. 780,000
1,400 SDL, Inc.* .................................... 574,000
600 Silicon Image, Inc.*/** ....................... 58,800
3,200 Silicon Valley Group, Inc.* ................... 81,000
2,900 TelCom Semiconductor, Inc.* ................... 64,163
1,400 TriQuint Semiconductor, Inc.*/** .............. 166,250
3,300 Varian Semiconductor Equipment
Associates, Inc.* ........................... 191,813
-----------
7,234,122
-----------
SERVICES - COMPUTER INTEGRATED SYSTEMS
DESIGN--0.4%
900 Comverse Technology, Inc.* .................... 177,188
800 Cysive, Inc.* ................................. 85,600
300 Redback Networks Inc.*/** ..................... 89,550
-----------
352,338
-----------
SERVICES - EMPLOYMENT AGENCIES--0.4%
1,000 Hall Kinion & Associates, Inc.* ............... 18,000
8,300 Korn/Ferry International* ..................... 311,250
-----------
329,250
-----------
SERVICES - HEALTH CARE MANAGEMENT--0.2%
4,650 Accredo Health, Inc.* ......................... 137,175
-----------
SERVICES - MANAGEMENT CONSULTING--0.7%
10,300 MAXIMUS, Inc.* ................................ 352,131
5,500 TeleTech Holdings, Inc.* ...................... 208,313
-----------
560,444
-----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
STEEL PIPE & TUBES--0.1%
3,200 Maverick Tube Corp.* .......................... $ 72,000
-----------
TELECOMMUNICATIONS--3.7%
1,400 Copper Mountain Networks, Inc.* ............... 121,713
2,100 E-Tek Dynamics, Inc.* ......................... 573,825
1,600 Inet Technologies, Inc.* ...................... 69,400
2,576 JDS Uniphase Corp.* ........................... 679,420
3,500 Latitude Communications, Inc.* ................ 73,938
8,700 Lightbridge, Inc.* ............................ 205,538
8,800 MasTec, Inc.* ................................. 507,100
4,500 Net2Phone, Inc.* .............................. 260,438
26,400 TALK.com, Inc.* ............................... 445,500
-----------
2,936,872
-----------
TELECOMMUNICATIONS EQUIPMENT--6.2%
6,200 ADC Telecommunications, Inc.* ................. 278,225
4,400 ADTRAN, Inc.*/** .............................. 323,675
5,700 Carrier Access Corp.*/** ...................... 323,475
2,600 CommScope, Inc.* .............................. 101,238
9,300 Corsair Communications, Inc.* ................. 265,050
5,800 Digital Lightwave, Inc.*/** ................... 482,850
5,100 Ditech Communications Corp.*/** ............... 557,175
6,000 Harmonic Inc.* ................................ 821,625
2,900 Powerwave Technologies, Inc.* ................. 463,638
1,400 Rural Cellular Corp., Class A ................. 77,350
5,400 ScanSource, Inc.* ............................. 205,200
9,200 Scientific-Atlanta, Inc. ...................... 944,725
1,400 Tollgrade Communications, Inc.* ............... 141,750
-----------
4,985,976
-----------
TOYS--0.1%
6,400 JAKKS Pacific, Inc.* .......................... 105,600
-----------
TRANSPORTATION--0.5%
3,300 EGL, Inc.* .................................... 92,813
5,950 Forward Air Corp.* ............................ 136,850
1,300 Landstar Systems, Inc.* ....................... 73,044
2,800 USFreightways Corp. ........................... 93,100
-----------
395,807
-----------
UTILITIES--1.4%
10,400 Calpine Corp.* ................................ 951,600
3,400 Minnesota Power, Inc. ......................... 52,063
9,000 Public Service Co. of New Mexico .............. 138,375
-----------
1,142,038
-----------
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
VITAMINS & NUTRITION PRODUCTS--0.1%
5,400 Rexall Sundown, Inc.*/** ...................... $ 81,000
-----------
WHOLESALE - DRUG DISTRIBUTION--0.6%
6,400 AmeriSource Health Corp., Class A* ............ 93,200
1,700 Cardinal Health, Inc. ......................... 70,125
6,475 Priority Healthcare Corp., Class B* ........... 310,800
-----------
474,125
-----------
Total Common Stocks
(Cost $53,683,090) .......................... 78,609,407
-----------
- -----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (000's) (NOTE 1)
- -----------------------------------------------------------------------
REPURCHASE AGREEMENT--1.8%
$1,428 Bear, Stearns & Co. Inc.
(Agreement dated 02/29/00, to be
repurchased at $1,427,851)
5.76%, 03/01/00
(Cost $1,427,623) (Note 6) .................. $ 1,427,623
-----------
Total Investments -- 100.3%
(Cost $55,110,713) .......................... 80,037,030
-----------
Liabilities in Excess of
Other Assets -- (0.3%) ...................... (235,836)
-----------
Net Assets -- 100.0% .......................... $79,801,194
===========
- ------------
*Non-income producing.
**Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MID CAP FUND+
PORTFOLIO OF INVESTMENTS
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMMON STOCKS--98.5%
ADVERTISING--0.0%
100 Avenue A, Inc. * .............................. $ 7,200
-----------
AEROSPACE--0.8%
5,900 General Dynamics Corp. ........................ 255,175
1,300 Northrop Grumman Corp. ........................ 59,069
-----------
314,244
-----------
AUTOMOBILE PARTS & EQUIPMENT--0.9%
12,000 Delphi Automotive Systems Corp.** ............. 200,250
6,200 Lear Corp.* ................................... 130,975
4,000 Meritor Automotive, Inc. ...................... 56,000
-----------
387,225
-----------
AUTOMOBILE RENTALS--0.6%
7,200 Hertz Corp. (The), Class A** .................. 257,850
-----------
BANKS--0.7%
8,600 North Fork Bancorporation, Inc. ............... 140,825
4,600 Provident Financial Group, Inc. ............... 129,375
-----------
270,200
-----------
BUILDING SUPPLIES--2.7%
15,000 Lafarge Corp. ................................. 295,312
22,100 Sherwin-Williams Co. (The)** .................. 422,662
12,600 USG Corp. ..................................... 409,500
-----------
1,127,474
-----------
BUSINESS SERVICES--1.9%
600 Catalina Marketing Corp.* ..................... 51,075
8,200 CSG Systems International, Inc.* .............. 421,275
4,600 Diamond Technology Partners Inc.* ............. 314,525
-----------
786,875
-----------
CHEMICALS - DIVERSIFIED--1.0%
8,200 FMC Corp.* .................................... 396,162
-----------
CHEMICALS - SPECIALTY--0.8%
20,500 Engelhard Corp. ............................... 279,312
3,400 W.R. Grace & Co.* ............................. 34,212
-----------
313,524
-----------
COMMERCIAL PRINTING--0.1%
1,150 Valassis Communications, Inc.* ................ 31,841
-----------
COMPUTER COMPONENTS--0.8%
1,500 Advanced Digital Information Corp.* ........... 135,937
2,000 SanDisk Corp.* ................................ 178,000
-----------
313,937
-----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMPUTER DATA SECURITY--1.5%
1,900 ISS Group, Inc* ............................... $ 199,500
1,600 VeriSign, Inc.* ............................... 404,800
-----------
604,300
-----------
COMPUTER NETWORKING PRODUCTS--1.7%
2,200 Adaptec, Inc.* ................................ 90,200
700 Brocade Communications Systems, Inc.* ......... 202,387
1,800 Extreme Networks, Inc.* ....................... 200,250
700 Juniper Networks, Inc.* ....................... 192,019
300 Xircom, Inc.* ................................. 12,459
-----------
697,315
-----------
COMPUTER PERIPHERAL EQUIPMENT--0.9%
6,600 CDW Computer Centers, Inc.* ................... 362,175
-----------
COMPUTER SERVICES--0.3%
900 Breakaway Solution, Inc.*/** .................. 112,500
-----------
COMPUTER SOFTWARE--17.9%
4,200 Adobe Systems Inc. ............................ 428,400
3,400 Apple Computer, Inc.* ......................... 389,725
4,900 AppNet, Inc.* ................................. 219,887
800 BEA Systems, Inc.* ............................ 101,250
2,300 Computer Associates International, Inc. ....... 147,919
19,400 Diebold, Inc. ................................. 475,300
37,700 Informix Corp.* ............................... 603,200
4,800 Mercury Interactive Corp.* .................... 462,600
3,600 Pixar, Inc.*/** ............................... 126,000
7,100 Rational Software Corp.* ...................... 504,987
7,500 Remedy Corp.* ................................. 425,156
11,500 Siebel Systems, Inc.* ......................... 1,594,906
8,700 VERITAS Software Corp.* ....................... 1,721,512
4,800 Viant Corp.* .................................. 182,100
-----------
7,382,942
-----------
CONSUMER PRODUCTS--0.9%
10,900 Black & Decker Corp. (The) .................... 359,019
-----------
ELECTRICAL EQUIPMENT--0.9%
2,800 Credence Systems Corp.* ....................... 373,100
-----------
ELECTRONIC COMPONENTS & ACCESSORIES--2.9%
1,700 ANADIGICS, Inc.* .............................. 229,500
1,000 Electro Scientific Industries, Inc.* .......... 56,687
4,800 Jabil Circuit, Inc.* .......................... 333,300
1,100 Sanmina Corp.*/** ............................. 128,769
900 TranSwitch Corp. .............................. 105,750
8,000 Vishay Intertechnology, Inc.* ................. 344,000
-----------
1,198,006
-----------
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MID CAP FUND+
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
ELECTRONICS--1.0%
800 DSP Group, Inc.* .............................. $ 70,250
6,000 Johnson Controls, Inc. ........................ 320,250
300 Polycom, Inc.* ................................ 34,894
-----------
425,394
-----------
ENERGY--1.2%
1,300 DTE Energy Co.** .............................. 39,244
1,900 Entergy Corp. ................................. 38,475
19,200 PPL Corp. ..................................... 386,400
1,900 Reliant Energy, Inc. .......................... 39,069
-----------
503,188
-----------
FINANCIAL SERVICES--3.3%
2,600 Ambac Financial Group, Inc. ................... 114,237
9,500 CIT Group, Inc. (The), Class A ................ 133,000
2,800 Deluxe Corp. .................................. 65,625
3,500 Federated Investors, Inc., Class B** .......... 81,594
7,900 FINOVA Group, Inc. (The) ...................... 226,137
2,300 H&R Block, Inc. ............................... 100,912
4,000 Knight Trimark Group, Inc.* ................... 187,500
8,900 Metris Companies, Inc.** ...................... 230,287
3,500 NCO Group, Inc.* .............................. 81,812
6,600 Profit Recovery Group International,
Inc. (The)*/** .............................. 122,100
-----------
1,343,204
-----------
FOOD & AGRICULTURE--3.4%
20,400 ConAgra, Inc. ................................. 334,050
2,000 Dean Foods Co. ................................ 54,250
25,400 IBP, Inc. ..................................... 317,500
13,900 International Home Foods, Inc.* ............... 235,431
8,300 Keebler Foods Co.* ............................ 210,612
6,600 McCormick & Co., Inc.* ........................ 180,675
4,800 U.S. Foodservice* ............................. 84,900
-----------
1,417,418
-----------
HEALTH CARE--1.6%
10,100 PacifiCare Health Systems, Inc.* .............. 458,919
3,100 Wellpoint Health Networks Inc.* ............... 209,250
-----------
668,169
-----------
HOME FURNISHINGS/HOUSEWARES--0.1%
3,500 Furniture Brands International, Inc.* ......... 56,219
-----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
HOUSEHOLD APPLIANCES--0.2%
1,300 Whirlpool Corp. ............................... $ 70,606
-----------
INSURANCE--0.2%
2,300 Loews Corp. ................................... 102,350
-----------
INSURANCE - FINANCIAL GUARANTEE--2.6%
8,700 MGIC Investment Corp. ......................... 325,162
12,600 PMI Group, Inc. (The) ......................... 457,537
8,700 Radian Group Inc. ............................. 301,781
-----------
1,084,480
-----------
INSURANCE - HEALTH & LIFE--0.5%
7,100 AXA Financial, Inc. ........................... 212,556
-----------
INTERNET CONTENT--1.3%
4,500 Go2Net, Inc.* ................................. 391,500
900 MyPoints.com, Inc.*/** ........................ 42,188
300 Network Solutions, Inc.* ...................... 96,731
-----------
530,419
-----------
INTERNET SOFTWARE--0.0%
100 Niku Corp.* ................................... 6,900
-----------
LEISURE & ENTERTAINMENT--0.9%
4,800 Cablevision Systems Corp., Class A*/** ........ 308,100
4,000 MGM Grand, Inc. ............................... 79,500
-----------
387,600
-----------
LUMBER & WOOD PRODUCTS--1.1%
21,100 Georgia-Pacific Corp. (Timber Group) .......... 465,519
-----------
MACHINERY--1.5%
2,500 Advanced Energy Industries, Inc.* ............. 181,875
3,600 Kulicke & Soffa Industries, Inc.* ............. 286,200
2,500 Zebra Technologies Corp., Class A* ............ 166,406
-----------
634,481
-----------
MANUFACTURING--2.1%
5,200 American Standard Companies, Inc.* ............ 181,350
22,300 Pall Corp. .................................... 440,425
4,800 Pentair, Inc. ................................. 165,000
3,600 Trinity Industries, Inc. ...................... 79,650
-----------
866,425
-----------
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MID CAP FUND+
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
MEDICAL INSTRUMENTS & SUPPLIES--3.0%
2,200 Baxter International, Inc. .................... $ 119,900
4,800 Beckman Coulter, Inc. ......................... 231,000
9,300 Biomet, Inc. .................................. 306,900
14,300 Mallinckrodt Inc. ............................. 352,138
400 Techne Corp.* ................................. 34,313
1,900 Waters Corp.* ................................. 186,319
-----------
1,230,570
-----------
MEDICAL & MEDICAL SERVICES--0.1%
200 CuraGen Corp.* ................................ 45,700
-----------
NATURAL GAS - DISTRIBUTION--3.4%
1,400 El Paso Energy Corp. .......................... 51,888
26,500 KeySpan Corp. ................................. 539,938
11,300 National Fuel Gas Co. ......................... 462,594
18,800 Sempra Energy** ............................... 338,400
-----------
1,392,820
-----------
NEWSPAPER & PUBLISHING--0.1%
900 Times Mirror Co. (The), Class A ............... 45,900
-----------
OIL EQUIPMENT & SERVICES--1.7%
1,100 BJ Services Co.* .............................. 62,769
20,800 ENSCO International Inc. ...................... 629,200
-----------
691,969
-----------
OIL & GAS FIELD EXPLORATION--5.0%
5,200 Amerada Hess Corp.** .......................... 262,925
1,600 Helmerich & Payne, Inc. ....................... 42,600
7,400 Kerr-McGee Corp. .............................. 331,150
4,400 Occidental Petroleum Corp. .................... 70,675
9,100 Ocean Energy Inc.* ............................ 97,256
8,000 Rowan Companies, Inc.* ........................ 201,000
15,900 Tidewater Inc. ................................ 450,169
31,800 Union Pacific Resources Group, Inc. ........... 284,213
15,000 USX-Marathon Group ............................ 324,375
-----------
2,064,363
-----------
PHARMACEUTICALS--0.8%
1,300 Andrx Corp.* .................................. 124,881
5,450 IVAX Corp.* ................................... 123,988
1,400 Medicis Pharmaceutical Corp., Class A* ........ 70,613
-----------
319,482
-----------
PHOTOGRAPHIC EQUIPMENT--0.9%
6,600 Eastman Kodak Co. ............................. 378,263
-----------
RESTAURANTS--1.0%
18,200 Brinker International, Inc.* .................. 395,850
-----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
RETAIL - DEPARTMENT STORES--1.2%
3,400 May Department Stores Co. (The)** ............. $ 89,038
15,300 Sears, Roebuck & Co. .......................... 421,706
-----------
510,744
-----------
RETAIL - JEWELRY STORES--1.1%
11,600 Zale Corp.* ................................... 436,450
-----------
RETAIL - SPECIALTY--0.8%
8,100 Dollar Tree Stores, Inc.*/** .................. 314,381
-----------
RETAIL - SPECIALTY APPAREL--1.6%
12,900 American Eagle Outfitters, Inc.*/** ........... 328,950
9,600 Limited, Inc. (The) ........................... 326,400
-----------
655,350
-----------
SAVINGS & LOAN ASSOCIATIONS--2.6%
18,400 Astoria Financial Corp. ....................... 438,150
27,000 Dime Bancorp, Inc. ............................ 329,063
13,000 Washington Mutual, Inc. ....................... 287,625
-----------
1,054,838
-----------
SEMICONDUCTORS--3.3%
5,600 Amkor Technology, Inc.* ....................... 290,850
500 Cree, Inc.* ................................... 93,938
4,500 Cypress Semiconductor Corp.* .................. 205,313
8,700 Fairchild Semiconductor Corp., Class A* ....... 328,425
6,500 International Rectifier Corp.* ................ 272,188
2,600 Novellus Systems, Inc.* ....................... 154,212
-----------
1,344,926
-----------
SERVICES - COMPUTER INTEGRATED SYSTEMS
DESIGN--0.1%
300 Comverse Technology, Inc.* .................... 59,063
-----------
SERVICES - EMPLOYMENT AGENCIES--1.6%
6,000 Manpower Inc. ................................. 196,125
11,000 Robert Half International Inc.* ............... 464,750
-----------
660,875
-----------
TELECOMMUNICATIONS--1.8%
3,000 Inet Technologies, Inc.* ...................... 130,125
5,800 MasTec, Inc.* ................................. 334,225
1,400 Nextel Communications, Inc., Class A* ......... 190,838
3,500 Price Communications Corp.* ................... 83,563
-----------
738,751
-----------
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MID CAP FUND+
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT--5.9%
3,500 ADC Telecommunications, Inc.* ................. $ 157,063
5,100 Carrier Access Corp.*/** ...................... 289,425
5,400 Digital Lightwave, Inc*/** .................... 449,550
4,000 Ditech Communications Corp.* .................. 437,000
3,500 Harmonic Inc.* ................................ 479,281
2,300 Powerwave Technologies, Inc.* ................. 367,713
2,700 Scientific-Atlanta, Inc. ...................... 277,256
-----------
2,457,288
-----------
TOBACCO--0.4%
9,800 R.J. Reynolds Tobacco Holdings, Inc. .......... 176,400
-----------
TRANSPORTATION--0.1%
1,000 USFreightways Corp. ........................... 33,250
-----------
UTILITIES--1.9%
1,000 Calpine Corp.* ................................ 91,500
6,100 Minnesota Power, Inc. ......................... 93,406
10,000 Public Service Enterprise Group Inc. .......... 290,000
15,400 Puget Sound Energy, Inc. ...................... 312,813
-----------
787,719
-----------
WHOLESALE - DRUG DISTRIBUTION--0.9%
9,200 Cardinal Health, Inc. ......................... 379,500
-----------
WHOLESALE - GROCERIES & GENERAL LINE--0.9%
23,000 SUPERVALU INC. ................................ 395,313
-----------
Total Common Stocks
(Cost $40,586,913) .......................... 40,640,582
-----------
- -----------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (000's) (NOTE 1)
- -----------------------------------------------------------------------
REPURCHASE AGREEMENT--1.9%
$782 Bear, Stearns & Co. Inc.
(Agreement dated 02/29/00 to be
repurchased at $781,759)
5.76%, 03/01/00
(Cost $781,633) (Note 6) .................... $ 781,633
-----------
Total Investments -- 100.4%
(Cost $41,368,546) .......................... 41,422,215
-----------
Liabilities in Excess of
Other Assets -- (0.4%) ...................... (160,242)
-----------
Net Assets -- 100.0% .......................... $41,261,973
===========
- -------------
+Formerly known as Growth & Value Fund.
*Non-income producing.
**Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
LARGER CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMMON STOCKS--91.2%
AEROSPACE--1.7%
300 Cordant Technologies, Inc. .................... $ 9,712
1,000 General Dynamics Corp. ........................ 43,250
200 Northrop Grumman Corp. ........................ 9,087
----------
62,049
----------
APPAREL--0.4%
700 Jones Apparel Group, Inc.* .................... 15,837
----------
AUTOMOBILE PARTS & EQUIPMENT--1.4%
1,321 Delphi Automotive Systems Corp.** ............. 22,044
1,000 Lear Corp.* ................................... 21,125
700 Meritor Automotive, Inc. ...................... 9,800
----------
52,969
----------
AUTOMOBILE RENTALS--0.3%
300 Hertz Corp. (The), Class A .................... 10,744
----------
BANKS--9.9%
1,100 AmSouth Bancorporation** ...................... 15,950
700 Bank of America Corp. ......................... 32,244
2,300 BB&T Corp.** .................................. 54,050
600 Chase Manhattan Corp., (The) .................. 47,775
500 Comerica Inc. ................................. 18,469
3,100 FleetBoston Financial Corp. ................... 84,475
312 Hudson United Bancorp ......................... 6,298
1,300 North Fork Bancorporation, Inc. ............... 21,287
1,700 PNC Financial Services Group .................. 65,769
700 UnionBanCal Corp. ............................. 22,487
----------
368,804
----------
BROKERAGE--1.9%
300 Lehman Brothers Holdings Inc. ................. 21,750
1,300 Paine Webber Group Inc. ....................... 49,725
----------
71,475
----------
BUILDING SUPPLIES--1.9%
700 Lafarge Corp. ................................. 13,781
2,300 Sherwin-Williams Co. (The)** .................. 43,987
400 USG Corp. ..................................... 13,000
----------
70,768
----------
CHEMICALS - DIVERSIFIED--0.9%
700 FMC Corp.* .................................... 33,819
----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
CHEMICALS - SPECIALTY--0.3%
300 Engelhard Corp. ............................... $ 4,087
200 Millennium Chemicals Inc. ..................... 2,800
400 W.R. Grace & Co.* ............................. 4,025
----------
10,912
----------
COMMERCIAL PRINTING--0.5%
650 Valassis Communications, Inc.* ................ 17,997
----------
COMPUTER NETWORKING PRODUCTS--0.1%
100 Adaptec, Inc.* ................................ 4,100
----------
COMPUTER SOFTWARE--3.2%
300 Adobe Systems Inc. ............................ 30,600
200 Apple Computer, Inc.* ......................... 22,925
500 Computer Associates International, Inc. ....... 32,156
2,100 Informix Corp.* ............................... 33,600
----------
119,281
----------
CONSUMER PRODUCTS--2.1%
1,200 Black & Decker Corp., (The) ................... 39,525
2,000 Philip Morris Companies Inc. .................. 40,125
----------
79,650
----------
ELECTRIC UTILITY--0.3%
500 GPU, Inc. ..................................... 12,437
----------
ELECTRONIC COMPONENTS & ACCESSORIES--0.3%
300 Vishay Intertechnology, Inc.* ................. 12,900
----------
ELECTRONICS--1.3%
900 Johnson Controls, Inc. ........................ 48,037
----------
ENERGY--3.2%
100 Coastal Corp. (The)** ......................... 4,206
800 DTE Energy Co.** .............................. 24,150
1,600 Entergy Corp. ................................. 32,400
1,100 FirstEnergy Corp.** ........................... 20,556
300 Pinnacle West Capital Corp. ................... 8,287
1,400 PPL Corp. ..................................... 28,175
----------
117,774
----------
FINANCIAL SERVICES--7.8%
1,000 Ambac Financial Group, Inc. ................... 43,937
100 Bank United Corp., Class A .................... 2,619
1,400 CIT Group, Inc. (The), Class A ................ 19,600
1,300 Citigroup Inc. ................................ 67,194
100 Deluxe Corp. .................................. 2,344
1,000 Edwards (A.G.), Inc. .......................... 31,687
900 Fannie Mae .................................... 47,700
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
LARGER CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
FINANCIAL SERVICES--(CONTINUED)
500 FINOVA Group, Inc. (The) ...................... $ 14,312
100 H&R Block, Inc. ............................... 4,387
300 Heller Financial, Inc.** ...................... 5,644
1,600 Household International, Inc.** ............... 51,100
----------
290,524
----------
FOOD & AGRICULTURE--1.8%
3,300 ConAgra, Inc. ................................. 54,037
300 IBP, Inc. ..................................... 3,750
300 International Home Foods, Inc.* ............... 5,081
200 Keebler Foods Co.* ............................ 5,075
----------
67,943
----------
HEALTH CARE--0.6%
500 PacifiCare Health Systems, Inc.* .............. 22,719
----------
HOME FURNISHINGS/HOUSEWARES--0.1%
300 Furniture Brands International, Inc.* ......... 4,819
----------
HOUSEHOLD APPLIANCES--1.2%
800 Whirlpool Corp. ............................... 43,450
----------
INSURANCE--0.9%
200 Allmerica Financial Corp. ..................... 8,350
600 Loews Corp. ................................... 26,700
----------
35,050
----------
INSURANCE - FINANCIAL GUARANTEE--2.4%
1,100 MGIC Investment Corp. ......................... 41,113
1,000 PMI Group, Inc. (The) ......................... 36,313
400 Radian Group Inc. ............................. 13,875
----------
91,301
----------
INSURANCE - HEALTH & LIFE--0.8%
300 AXA Financial, Inc. ........................... 8,981
200 CIGNA Corp. ................................... 14,762
300 Nationwide Financial Services, Inc.,
Class A ..................................... 6,919
----------
30,662
----------
INSURANCE - LIFE--0.8%
600 American General Corp. ........................ 31,313
----------
LEISURE & ENTERTAINMENT--1.6%
100 Brunswick Corp. ............................... 1,769
300 Cablevision Systems Corp., Class A*/** ........ 19,256
200 USA Networks, Inc.*/** ........................ 4,488
1,000 Walt Disney Co., (The) ........................ 33,500
----------
59,013
----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
LUMBER & WOOD PRODUCTS--1.2%
400 Georgia-Pacific Corp. (Timber Group) .......... $ 8,825
1,000 Georgia-Pacific Group ......................... 34,688
----------
43,513
----------
MACHINERY--0.4%
200 Kulicke & Soffa Industries, Inc.* ............. 15,900
----------
MANUFACTURING--1.8%
600 American Standard Companies Inc.* ............. 20,925
300 Minnesota Mining & Manufacturing
Co., (3M) ................................... 26,438
500 Pall Corp. .................................... 9,875
300 Pentair, Inc. ................................. 10,313
----------
67,551
----------
MEDICAL INSTRUMENTS & SUPPLIES--1.0%
400 Baxter International, Inc. .................... 21,800
600 Mallinckrodt Inc. ............................. 14,775
----------
36,575
----------
NATURAL GAS - DISTRIBUTION--3.8%
1,700 El Paso Energy Corp. .......................... 63,006
1,500 KeySpan Corp. ................................. 30,563
300 National Fuel Gas Co. ......................... 12,281
2,100 Sempra Energy ................................. 37,800
----------
143,650
----------
NEWSPAPER & PUBLISHING--1.9%
1,000 Knight-Ridder, Inc. ........................... 46,875
500 Times Mirror Co. (The), Class A ............... 25,500
----------
72,375
----------
OIL & GAS FIELD EXPLORATION--9.3%
1,000 Amerada Hess Corp.** .......................... 50,563
1,600 Conoco Inc., Class B .......................... 31,500
600 Helmerich & Payne, Inc. ....................... 15,975
1,200 Kerr-McGee Corp. .............................. 53,700
3,100 Occidental Petroleum Corp. .................... 49,794
300 Ocean Energy Inc.* ............................ 3,206
800 Phillips Petroleum Co. ........................ 30,600
500 Pioneer Natural Resources Co.* ................ 4,156
1,200 Tidewater Inc. ................................ 33,975
2,900 Union Pacific Resources Group Inc. ............ 25,919
2,300 USX-Marathon Group ............................ 49,738
----------
349,126
----------
PAPER & ALLIED PRODUCTS--0.8%
900 Willamette Industries, Inc. ................... 30,544
----------
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
LARGER CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
PHOTOGRAPHIC EQUIPMENT--1.9%
1,200 Eastman Kodak Co. ............................. $ 68,775
----------
PLASTICS--0.1%
300 Tupperware Corp. .............................. 5,156
----------
RESTAURANTS--0.2%
300 Tricon Global Restaurants, Inc.* .............. 7,988
----------
RETAIL - DEPARTMENT STORES--2.1%
300 Federated Department Stores, Inc.*/** ......... 11,006
300 May Department Stores Co. (The)** ............. 7,856
2,100 Sears, Roebuck & Co. .......................... 57,881
----------
76,743
----------
RETAIL - JEWELRY STORES--0.2%
200 Zale Corp.* ................................... 7,525
----------
RETAIL - SPECIALTY APPAREL--1.5%
1,600 Limited, Inc. ................................. 54,400
----------
SAVINGS & LOAN ASSOCIATIONS--1.2%
800 Astoria Financial Corp. ....................... 19,050
1,000 Dime Bancorp, Inc. ............................ 12,188
300 Golden State Bancorp Inc.* .................... 3,863
500 Washington Mutual, Inc. ....................... 11,063
----------
46,164
----------
SEMICONDUCTORS--1.2%
400 Cypress Semiconductor Corp.* .................. 18,250
700 Fairchild Semiconductor Corp., Class A* ....... 26,425
----------
44,675
----------
TELECOMMUNICATIONS--10.3%
2,000 AT&T Corp. .................................... 98,875
2,332 Bell Atlantic Corp. ........................... 114,122
3,000 BellSouth Corp. ............................... 122,250
100 Motorola, Inc. ................................ 17,050
900 SBC Communications Inc. ....................... 34,200
----------
386,497
----------
TELECOMMUNICATIONS EQUIPMENT--0.3%
100 Scientific-Atlanta, Inc. ...................... 10,269
----------
TRANSPORTATION--0.7%
1,000 Burlington Northern Santa Fe Corp. ............ 19,688
200 USFreightways Corp. ........................... 6,650
----------
26,338
----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
UTILITIES--2.1%
300 Allegheny Energy, Inc. ........................ $ 7,781
300 Minnesota Power, Inc. ......................... 4,594
400 PECO Energy Co. ............................... 14,925
1,600 Public Service Enterprise Group Inc. .......... 46,400
300 Puget Sound Energy, Inc. ...................... 6,094
----------
79,794
----------
WHOLESALE - DRUG DISTRIBUTION--0.7%
600 Cardinal Health, Inc. ......................... 24,750
----------
WHOLESALE - GROCERIES & GENERAL LINE--0.8%
1,800 SUPERVALU INC. ................................ 30,938
----------
Total Investments -- 91.2%
(Cost $3,974,668) ........................... 3,415,593
----------
Other Assets in Excess
of Liabilities -- 8.8% ...................... 328,043
----------
Net Assets -- 100.0% .......................... $3,743,636
==========
- -----------
*Non-income producing.
**Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
COMMON STOCKS--94.5%
ADVERTISING--0.3%
1,100 ADVO, Inc.* ................................... $ 30,525
----------
AEROSPACE--0.7%
2,000 Cordant Technologies, Inc. .................... 64,750
----------
AMUSEMENT & RECREATIONAL SERVICES--0.6%
1,900 Polaris Industries, Inc. ...................... 58,187
----------
APPAREL--2.1%
5,700 Kellwood Co. .................................. 96,187
2,900 Nautica Enterprises, Inc.* .................... 30,631
5,900 Russell Corp. ................................. 81,494
----------
208,312
----------
AUTOMOBILE PARTS & EQUIPMENT--3.4%
1,300 American Axle & Manufacturing
Holdings, Inc.* ............................. 18,119
4,700 Arvin Industries, Inc. ........................ 86,362
3,000 Borg-Warner Automotive, Inc. .................. 96,000
1,200 Lear Corp.* ................................... 25,350
6,100 Meritor Automotive, Inc. ...................... 85,400
1,700 Tower Automotive, Inc.*/** .................... 20,187
----------
331,418
----------
AUTOMOBILE RENTALS--0.3%
500 Avis Rent A Car, Inc.* ........................ 7,281
2,000 Dollar Thrifty Automotive Group, Inc.* ........ 26,250
----------
33,531
----------
BANKS--6.3%
1,000 Centura Banks, Inc. ........................... 33,750
9,500 Colonial BancGroup, Inc. (The)** .............. 84,312
1,600 GBC Bancorp** ................................. 43,200
8,100 Hibernia Corporation, Class A ................. 73,406
4,720 Hudson United Bancorp ......................... 95,285
4,100 North Fork Bancorporation, Inc. ............... 67,137
500 Oriental Financial Group Inc.** ............... 9,500
3,500 Pacific Century Financial Corp. ............... 53,156
500 Provident Bankshares Corp. .................... 8,062
2,900 Provident Financial Group, Inc. ............... 81,562
3,600 TCF Financial Corp. ........................... 71,325
----------
620,695
----------
BUILDING - MAINTENANCE & SERVICE--0.1%
1,200 Encompass Services Corp.* ..................... 9,150
----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
BUILDING SUPPLIES--2.1%
3,800 Hughes Supply, Inc. ........................... $ 67,925
4,300 Lafarge Corp. ................................. 84,656
1,800 USG Corp. ..................................... 58,500
----------
211,081
----------
BUSINESS SERVICES--1.2%
800 Affiliated Computer Services, Inc.,
Class A*/** ................................. 25,200
1,100 Eaton Vance Corp. ............................. 45,581
6,200 IT Group, Inc.* ............................... 47,275
----------
118,056
----------
CHEMICALS - DIVERSIFIED--0.3%
700 FMC Corp.* .................................... 33,819
----------
CHEMICALS - SPECIALTY--1.3%
1,900 Cytec Industries Inc.* ........................ 46,075
2,200 Engelhard Corp. ............................... 29,975
900 Millennium Chemicals, Inc. .................... 12,600
4,000 W.R. Grace & Co.* ............................. 40,250
----------
128,900
----------
COAL--0.8%
6,600 CONSOL Energy Inc. ............................ 76,725
----------
COMPUTER PERIPHERAL EQUIPMENT--0.5%
1,600 In Focus Systems, Inc.* ....................... 53,600
----------
COMPUTER PROGRAMMING AND DATA
PROCESSING--0.3%
800 Bell & Howell Co.* ............................ 26,200
----------
COMPUTER SERVICES--0.6%
3,700 Pomeroy Computer Resources, Inc.* ............. 60,587
----------
COMPUTER SOFTWARE--3.1%
1,900 Autodesk, Inc.** .............................. 84,906
1,500 CACI International Inc.* ...................... 42,656
4,200 Diebold, Inc. ................................. 102,900
800 Informix Corp.* ............................... 12,800
400 InterVoice-Brite, Inc.* ....................... 14,450
950 THQ Inc.* ..................................... 19,178
1,200 Unigraphics Solutions Inc.* ................... 33,225
----------
310,115
----------
COMPUTERS--0.5%
3,000 Mentor Graphics Corp.* ........................ 51,375
----------
CONSTRUCTION--0.6%
2,500 Centex Construction Products, Inc. ............ 58,125
----------
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
CONSUMER PRODUCTS--1.4%
2,800 Dial Corp. (The) .............................. $ 40,250
800 Polaroid Corp. ................................ 20,050
8,200 Sturm, Ruger & Co. ............................ 79,950
----------
140,250
----------
CONTAINERS--0.6%
6,000 American National Can Group, Inc. ............. 60,000
----------
ELECTRIC SERVICES--1.6%
6,200 Conectiv, Inc. ................................ 88,350
1,400 IPALCO Enterprises, Inc. ...................... 23,712
2,500 OGE Energy Corp. .............................. 42,969
----------
155,031
----------
ELECTRICAL EQUIPMENT--1.3%
2,500 C&D Technologies, Inc. ........................ 116,875
200 SBS Technologies, Inc.* ....................... 10,887
----------
127,762
----------
ELECTRONIC COMPONENTS & ACCESSORIES--3.8%
400 Actel Corp. ................................... 13,025
1,700 Arrow Electronics, Inc.* ...................... 51,425
2,700 Comptek Research, Inc.*/** .................... 39,150
700 L-3 Communications Holdings, Inc.* ............ 29,794
7,100 Pioneer-Standard Electronics, Inc.** .......... 130,462
2,300 Technitrol, Inc. .............................. 107,812
----------
371,668
----------
ELECTRONICS--0.6%
1,000 Cohu, Inc. .................................... 56,375
----------
ENERGY--0.9%
6,300 Questar Corp. ................................. 87,806
----------
ENGINES--0.3%
1,000 Cummins Engine Co., Inc. ...................... 33,312
----------
FINANCIAL SERVICES--6.5%
2,200 Advanta Corp., Class A** ...................... 40,975
4,800 Bank United Corp., Class A .................... 125,700
800 Deluxe Corp. .................................. 18,750
9,400 Doral Financial Corp. ......................... 92,237
2,000 Federated Investors, Inc., Class B** .......... 46,625
2,500 FINOVA Group Inc. (The) ....................... 71,562
5,300 Heller Financial, Inc. ........................ 99,706
1,000 John Nuveen Co.(The), Class A** ............... 34,500
3,600 LaBranche & Co. Inc.* ......................... 43,650
2,600 Neuberger Berman, Inc. ........................ 66,950
----------
640,655
----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
FOOD & AGRICULTURE--3.3%
3,000 Del Monte Foods Co.*/** ....................... $ 37,500
6,000 IBP, Inc. ..................................... 75,000
1,900 International Home Foods, Inc.* ............... 32,181
6,200 International Multifoods Corp.** .............. 67,812
2,700 Pilgrim's Pride Corp., Class B ................ 21,600
5,100 Universal Foods Corp. ......................... 92,119
----------
326,212
----------
HEALTH CARE--0.5%
1,100 PacifiCare Health Systems, Inc.* .............. 49,981
----------
HOME FURNISHINGS/HOUSEWARES--0.8%
3,100 Furniture Brands International, Inc.* ......... 49,794
2,400 Shaw Industries, Inc. ......................... 30,450
----------
80,244
----------
HOUSEHOLD PRODUCTS--1.3%
4,600 Libbey Inc. ................................... 123,625
----------
INSURANCE - FINANCIAL GUARANTEE--1.9%
2,500 Enhance Financial Services Group Inc. ......... 29,375
1,450 PMI Group, Inc. (The) ......................... 52,653
3,100 Radian Group Inc. ............................. 107,531
----------
189,559
----------
INSURANCE - HEALTH & LIFE--2.3%
2,000 AmerUs Life Holdings, Inc., Class A** ......... 40,625
1,048 Delphi Financial Group, Inc., Class A* ........ 27,641
800 Hartford Life, Inc., Class A .................. 28,300
2,500 Liberty Financial Companies, Inc. ............. 48,281
3,600 Nationwide Financial Services, Inc.,
Class A ..................................... 83,025
----------
227,872
----------
INSURANCE - PROPERTY & CASUALTY--1.7%
4,400 CNA Surety Corp. .............................. 50,050
900 Medical Assurance, Inc. ....................... 17,662
6,700 MIIX Group, Inc. (The) ........................ 77,888
700 Travelers Property Casualty Corp.,
Class A ..................................... 22,138
----------
167,738
----------
INSURANCE - TITLE INSURANCE--0.3%
600 Chicago Title Corp. ........................... 27,900
----------
LEISURE & ENTERTAINMENT--0.7%
1,000 Anchor Gaming* ................................ 41,625
1,500 Brunswick Corp. ............................... 26,531
----------
68,156
----------
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
MACHINERY--3.8%
800 Graco Inc.** .................................. $ 24,150
1,200 Imation Corp.* ................................ 37,125
1,000 Kulicke & Soffa Industries, Inc.* ............. 79,500
2,100 Milacron Inc.** ............................... 29,138
2,700 Tecumseh Products Co., Class A ................ 116,438
3,800 United Dominion Industries Ltd. ............... 70,063
300 Zebra Technologies Corp., Class A* ............ 19,969
----------
376,383
----------
MANUFACTURING--2.5%
2,300 MascoTech, Inc. ............................... 32,200
2,200 National Service Industries, Inc. ............. 45,100
2,300 Pentair, Inc. ................................. 79,063
3,900 Trinity Industries, Inc. ...................... 86,288
----------
242,651
----------
MEDICAL INSTRUMENTS & SUPPLIES--1.7%
1,200 Beckman Coulter, Inc. ......................... 57,750
2,100 Invacare Corp. ................................ 51,188
2,500 Mallinckrodt Inc. ............................. 61,563
----------
170,501
----------
METAL FABRICATING--0.8%
7,200 Intermet Corp. ................................ 81,000
----------
NATURAL GAS - DISTRIBUTION--4.5%
5,100 Energen Corp. ................................. 82,875
900 MCN Energy Group Inc. ......................... 21,656
1,200 Midcoast Energy Resources, Inc. ............... 18,900
3,100 NICOR Inc. .................................... 94,163
400 NUI Corp.** ................................... 9,500
4,700 ONEOK, Inc. ................................... 106,631
900 SEMCO Energy, Inc.** .......................... 10,800
5,100 UGI Corp. ..................................... 95,625
----------
440,150
----------
OFFICE & BUSINESS EQUIPMENT--0.4%
1,300 United Stationers Inc.* ....................... 34,938
----------
OIL & GAS FIELD EXPLORATION--3.7%
10,400 Cross Timbers Oil Co. ......................... 89,700
700 Helmerich & Payne, Inc. ....................... 18,638
2,000 HS Resources, Inc.* ........................... 33,000
500 Noble Affiliates, Inc. ........................ 11,250
3,700 Ocean Energy Inc.* ............................ 39,544
500 Offshore Logistics, Inc. ...................... 4,969
7,700 Pioneer Natural Resources Co.* ................ 64,006
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
OIL & GAS FIELD EXPLORATION--(CONTINUED)
4,400 Swift Energy Co.* ............................. $ 51,975
1,700 Tidewater Inc. ................................ 48,131
----------
361,213
----------
OPTICAL INSTRUMENTS & LENSES--0.3%
1,700 Robotic Vision Systems, Inc.* ................. 29,750
----------
PAPER & ALLIED PRODUCTS--1.1%
1,200 Buckeye Technologies Inc.* .................... 19,125
1,500 Louisiana-Pacific Corp. ....................... 17,719
5,600 Schweitzer-Mauduit International, Inc. ........ 76,300
----------
113,144
----------
PLASTICS--1.1%
6,500 Tupperware Corp. .............................. 111,719
----------
RECYCLING--0.6%
5,500 IMCO Recycling Inc. ........................... 54,656
----------
RESIDENTIAL CONSTRUCTION--4.6%
9,300 D.R. Horton, Inc. ............................. 104,625
2,000 Kaufman and Broad Home Corp. .................. 38,250
4,800 Pulte Corp. ................................... 80,700
5,100 Ryland Group, Inc. (The) ...................... 90,525
10,700 Standard Pacific Corp. ........................ 113,688
1,300 Toll Brothers, Inc.* .......................... 21,613
----------
449,401
----------
RETAIL - DEPARTMENT STORES--0.2%
1,600 Ames Department Stores, Inc.*/** .............. 22,600
----------
RETAIL - JEWELRY STORES--0.4%
2,100 Claire's Stores, Inc. ......................... 36,619
----------
RETAIL - SHOE STORES--0.6%
5,300 Brown Shoe Company, Inc. ...................... 55,650
----------
RETAIL - SPECIALTY--0.4%
2,500 Pier 1 Imports, Inc.** ........................ 21,875
1,100 ShopKo Stores, Inc.* .......................... 18,288
----------
40,163
----------
RETAIL - SPECIALTY APPAREL--1.2%
6,400 Cato Corp. (The), Class A ..................... 64,000
2,600 Ross Stores, Inc. ............................. 37,700
600 Wilsons, The Leather Experts, Inc.* ........... 15,300
----------
117,000
----------
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2000 (UNAUDITED)
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
SAVINGS & LOAN ASSOCIATIONS--2.5%
3,800 Astoria Financial Corp. ....................... $ 90,488
1,900 Downey Financial Corp. ........................ 37,406
2,500 Flagstar Bancorp, Inc.** ...................... 32,188
1,800 Golden State Bancorp Inc.*/** ................. 23,175
5,400 Sovereign Bancorp, Inc. ....................... 39,150
1,200 Webster Financial Corp. ....................... 25,350
----------
247,757
----------
SEMICONDUCTORS--0.8%
1,500 Integrated Silicon Solution, Inc.* ............ 41,719
1,600 Silicon Valley Group, Inc.* ................... 40,500
----------
82,219
----------
STEEL--0.9%
300 Carpenter Technology Corp. .................... 6,675
11,500 National Steel Corp., Class B ................. 80,500
----------
87,175
----------
TELECOMMUNICATIONS EQUIPMENT--1.1%
2,100 Centigram Communications Corp.* ............... 43,313
800 Plantronics, Inc.*/** ......................... 63,550
----------
106,863
----------
TOBACCO--0.7%
2,300 R.J. Reynolds Tobacco Holdings, Inc. .......... 41,400
1,500 Universal Corp. ............................... 24,563
----------
65,963
----------
TOOLS--0.2%
800 Snap-On, Inc. ................................. 17,450
----------
TRANSPORTATION--1.3%
5,000 Arkansas Best Corp.*/** ....................... 47,188
1,300 GATX Corp. .................................... 40,463
300 USFreightways Corp. ........................... 9,975
1,700 Yellow Corp.* ................................. 27,200
----------
124,826
----------
TRUCKS - RENTAL SERVICES--0.4%
2,100 Rollins Truck Leasing Corp. ................... 17,588
1,000 Ryder System, Inc. ............................ 18,625
----------
36,213
----------
UTILITIES--2.4%
8,300 Public Service Co. of New Mexico .............. 127,613
5,600 RGS Energy Group Inc.** ....................... 110,250
----------
237,863
----------
- -----------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------------
WHOLESALE - DISTRIBUTION--0.4%
2,700 Bell Microproducts, Inc.* ..................... $ 36,619
----------
WHOLESALE - DRUG DISTRIBUTION--0.3%
2,100 AmeriSource Health Corp., Class A* ............ 30,581
----------
WHOLESALE - MEDICAL, DENTAL & HOSPITAL
EQUIPMENT & SERVICES--0.7%
5,900 Owens & Minor, Inc. Holding Co.** ............. 64,900
----------
Total Common Stocks
(Cost $10,435,156) .......................... 9,295,264
----------
PRINCIPAL
AMOUNT (000'S)
- --------------
REPURCHASE AGREEMENT--4.5%
$440 Bear, Stearns & Co. Inc.
(Agreement dated 02/29/00 to be
repurchased at $439,633)
5.76%, 03/01/00
(Cost $439,563) (Note 6) .................... 439,563
----------
Total Investments -- 99.0%
(Cost $10,874,719) .......................... 9,734,827
----------
Other Assets in Excess
of Liabilities -- 1.0% ...................... 98,328
----------
Net Assets -- 100.0% .......................... $9,833,155
==========
- ---------
*Non-income producing.
**Security or a portion thereof is out on loan.
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MICRO CAP GROWTH MID CAP LARGER CAP VALUE SMALL CAP VALUE
FUND FUND FUND* FUND FUND
------------ ----------- ----------- ---------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value (Cost - $103,683,853,
$55,110,713, $41,368,546, $3,974,668,
$10,874,719, respectively) ...................... $134,026,672 $80,037,030 $41,422,215 $ 3,415,593 $ 9,734,827
Cash collateral received for securities loaned
(Note 5) ........................................ 3,003,532 1,194,846 175,589 2,364 14,184
Receivable for investments sold .................... 3,958,630 2,026,270 862,443 540,010 241,721
Dividends and interest receivable .................. 40,811 18,862 48,666 8,613 21,793
Receivable for Fund shares sold .................... 42,700 54,353 1,290 -- --
Receivable from investment adviser ................. -- -- -- 4,887 284
Prepaid expenses ................................... 21,084 14,294 42,597 -- --
------------ ----------- ----------- ----------- -----------
Total assets .................................... 141,093,429 83,345,655 42,552,800 3,971,467 10,012,809
------------ ----------- ----------- ----------- -----------
LIABILITIES
Payable upon return of securities loaned
(Note 5) ........................................ 3,003,532 1,194,846 175,589 2,364 14,184
Payable for investments purchased .................. 3,199,492 2,145,762 923,471 40,901 159,769
Payable for fund shares redeemed ................... 36,264 166,721 187,130 49,450 --
Accrued expenses and other liabilities ............. 51,477 37,132 4,637 135,116 5,701
------------ ----------- ----------- ----------- -----------
Total liabilities ............................... 6,290,765 3,544,461 1,290,827 227,831 179,654
------------ ----------- ----------- ----------- -----------
NET ASSETS
Capital stock, $0.001 par value .................... 6,758 3,430 2,514 361 994
Additional paid-in capital ......................... 89,077,886 43,567,736 38,030,496 5,661,132 11,664,322
Undistributed net investment income/(loss) ......... (261,111) (205,723) 91,272 49,569 74,678
Accumulated undistributed net realized gain/(loss)
from investments and futures transactions,
if any .......................................... 15,636,312 11,509,434 3,084,022 (1,408,351) (766,947)
Net unrealized appreciation/(depreciation) on
investments and futures transactions, if any .... 30,342,819 24,926,317 53,669 (559,075) (1,139,892)
------------ ----------- ----------- ----------- -----------
Net assets applicable to shares outstanding ........ $134,802,664 $79,801,194 $41,261,973 $ 3,743,636 $ 9,833,155
============ =========== =========== =========== ===========
Shares outstanding .................................... 6,758,092 3,430,297 2,513,988 360,610 994,179
------------ ----------- ----------- ----------- -----------
Net asset value, offering and redemption
price per share .................................... $19.95 $23.26 $16.41 $10.38 $9.89
====== ====== ====== ====== =====
<FN>
- -----------
* Formerly known as Growth & Value Fund.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MICRO CAP GROWTH MID CAP LARGER CAP VALUE SMALL CAP VALUE
FUND FUND FUND* FUND FUND
------------ ----------- ----------- ---------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends** ........................................ $ 95,630 $ 84,242 $ 276,278 $ 77,235 $ 113,894
Interest ........................................... 110,838 29,256 37,465 3,112 12,273
Securities lending (Note 5) ........................ 29,014 15,289 6,110 321 1,421
----------- ----------- ---------- ----------- -----------
235,482 128,787 319,853 80,668 127,588
----------- ----------- ---------- ----------- -----------
EXPENSES
Advisory fees ...................................... 372,445 250,587 171,377 24,136 39,695
Co-Administration fees ............................. 86,935 58,587 48,925 39,109 40,146
Administrative service fees ........................ 74,489 50,177 34,275 4,827 7,939
Transfer agent fees and expenses ................... 31,252 26,988 46,424 20,816 19,893
Printing ........................................... 4,320 2,347 38,762 336 481
Custodian fees and expenses ........................ 14,898 10,035 6,855 968 1,588
Federal and state registration fees ................ 6,955 5,212 3,374 3,519 9,340
Audit and legal fees ............................... 11,536 6,915 4,893 421 2,238
Other .............................................. 3,536 3,615 2,863 504 1,209
----------- ----------- ---------- ----------- -----------
Total expenses before waivers and
reimbursements ............................... 606,366 414,463 357,748 94,636 122,529
Less: waivers and reimbursements ................ (109,773) (79,953) (129,245) (62,454) (69,602)
----------- ----------- ---------- ----------- -----------
Total expenses after waivers and
reimbursements ............................... 496,593 334,510 228,503 32,182 52,927
----------- ----------- ---------- ----------- -----------
Net Investment Income/(loss) ....................... (261,111) (205,723) 91,350 48,486 74,661
----------- ----------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS AND FUTURES TRANSACTIONS:
Net realized gain/(loss) from:
Investments ..................................... 16,105,800 12,198,750 4,143,112 (1,111,042) (658,251)
Futures transactions ............................ (67,142) -- -- -- --
Net change in unrealized appreciation/
(depreciation) on investments ................... 27,099,355 20,771,161 342,392 (217,386) (873,192)
----------- ----------- ---------- ----------- -----------
Net realized and unrealized gain/(loss) on
investments and futures transactions, if any .... 43,138,013 32,969,911 4,485,504 (1,328,428) (1,531,443)
----------- ----------- ---------- ----------- -----------
Net increase/(decrease) in net assets resulting
from operations .................................... $42,876,902 $32,764,188 $4,576,854 $(1,279,942) $(1,456,782)
=========== =========== ========== =========== ===========
<FN>
- -----------
* Formerly known as Growth & Value Fund.
** Net of foreign withholding taxes of $1,202, $102, and $310, for the Micro Cap
Fund, Growth Fund, and Small Cap Value Fund, respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MICRO CAP GROWTH
FUND FUND
----------------------------------- -----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED FISCAL SIX MONTHS ENDED FISCAL
FEBRUARY 29, 2000 YEAR ENDED FEBRUARY 29, 2000 YEAR ENDED
(UNAUDITED) AUGUST 31, 1999 (UNAUDITED) AUGUST 31, 1999
----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS:
Net investment income/(loss) ....................... $ (261,111) $ (463,635) $ (205,723) $ (341,042)
Net realized gain/(loss) from investments
and futures transactions, if any ................ 16,038,658 18,229,148 12,198,750 3,454,997
Net change in unrealized appreciation/
(depreciation) on investments and
futures transactions, if any .................... 27,099,355 26,593,111 20,771,161 28,829,220
------------ ------------ ------------ ------------
Net increase/(decrease) in net assets
resulting from operations ....................... 42,876,902 44,358,624 32,764,188 31,943,175
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .............................. -- -- -- --
Net realized capital gains ......................... (18,272,209) (7,942,123) (1,484,633) (39,086)
------------ ------------ ------------ ------------
Total dividends and distributions to shareholders .. (18,272,209) (7,942,123) (1,484,633) (39,086)
------------ ------------ ------------ ------------
INCREASE/(DECREASE) IN NET ASSETS DERIVED
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ........... 33,849,146 (59,334,109) (13,854,184) (47,367,810)
------------ ------------ ------------ ------------
Total increase/(decrease) in net assets ............ 58,453,839 (22,917,608) 17,425,371 (15,463,721)
NET ASSETS
Beginning of period ................................ 76,348,825 99,266,433 62,375,823 77,839,544
------------ ------------ ------------ ------------
End of period+ ..................................... $134,802,664 $ 76,348,825 $ 79,801,194 $ 62,375,823
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MID CAP LARGER CAP VALUE
FUND* FUND
----------------------------------- -----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED FISCAL SIX MONTHS ENDED FISCAL
FEBRUARY 29, 2000 YEAR ENDED FEBRUARY 29, 2000 YEAR ENDED
(UNAUDITED) AUGUST 31, 1999 (UNAUDITED) AUGUST 31, 1999
----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS:
Net investment income/(loss) ....................... $ 91,350 $ 274,601 $ 48,486 $ 204,443
Net realized gain/(loss) from investments
and futures transactions, if any ................ 4,143,112 4,760,317 (1,111,042) (167,333)
Net change in unrealized appreciation/
(depreciation) on investments and
futures transactions, if any .................... 342,392 29,753,292 (217,386) 5,969,183
----------- ------------ ----------- ------------
Net increase/(decrease) in net assets
resulting from operations ....................... 4,576,854 34,788,210 (1,279,942) 6,006,293
----------- ------------ ----------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .............................. (82,617) (497,210) (87,005) (253,730)
Net realized capital gains ......................... (5,452,700) (10,970,699) -- (542,701)
----------- ------------ ----------- ------------
Total dividends and distributions to shareholders .. (5,535,317) (11,467,909) (87,005) (796,431)
----------- ------------ ----------- ------------
INCREASE/(DECREASE) IN NET ASSETS DERIVED
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ........... (6,935,345) (84,340,716) (3,145,408) (22,210,422)
----------- ------------ ----------- ------------
Total increase/(decrease) in net assets ............ (7,893,808) (61,020,415) (4,512,355) (17,000,560)
NET ASSETS
Beginning of period ................................ 49,155,781 110,176,196 8,255,991 25,256,551
----------- ------------ ----------- ------------
End of period+ ..................................... $41,261,973 $ 49,155,781 $ 3,743,636 $ 8,255,991
=========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE
FUND
----------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS ENDED NOVEMBER 30, 1998**
FEBRUARY 29, 2000 THROUGH
(UNAUDITED) AUGUST 31, 1999
------------------ -------------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS:
Net investment income/(loss) ....................... $ 74,661 $ 87,010
Net realized gain/(loss) from investments
and futures transactions, if any ................ (658,251) 1,061,132
Net change in unrealized appreciation/
(depreciation) on investments and
futures transactions, if any .................... (873,192) (266,700)
----------- -----------
Net increase/(decrease) in net assets
resulting from operations ....................... (1,456,782) 881,442
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .............................. (86,993) --
Net realized capital gains ......................... (1,169,828) --
----------- -----------
Total dividends and distributions to shareholders .. (1,256,821) --
----------- -----------
INCREASE/(DECREASE) IN NET ASSETS DERIVED
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ........... 1,048,468 10,616,848
----------- -----------
Total increase/(decrease) in net assets ............ (1,665,135) 11,498,290
NET ASSETS
Beginning of period ................................ 11,498,290 --
----------- -----------
End of period+ ..................................... $ 9,833,155 $11,498,290
=========== ===========
<FN>
- -----------
* Formerly known as Growth & Value Fund.
** Commencement of operations.
+ Includes undistributed net investment income of $91,272, $49,569, and $74,678
for the Mid Cap Fund, Larger Cap Value Fund and Small Cap Value Fund,
respectively, for the six months ended February 29, 2000. At August 31, 1999,
the Mid Cap Fund, Larger Cap Value Fund and Small Cap Value Fund had
undistributed net investment income of $82,539, $88,088 and $87,010,
respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
32 & 33
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[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 FOR THE FISCAL JUNE 3, 1996*
FEBRUARY 29, 2000 YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
(UNAUDITED) AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996
----------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....... $ 18.03 $ 12.52 $ 18.47 $ 11.67 $ 12.00
-------- -------- ------- -------- -------
Net investment income/(loss) ............... (0.04) (0.18) (0.07) (0.01) 0.01
Net realized and unrealized gain/(loss) on
investments and futures transactions,
if any .................................. 6.29 6.72 (3.23) 6.82 (0.34)
-------- -------- ------- -------- -------
Net increase/(decrease) in net assets
resulting from operations ............... 6.25 6.54 (3.30) 6.81 (0.33)
-------- -------- ------- -------- -------
Dividends and distributions to shareholders
from:
Net investment income ...................... -- -- -- (0.01) --
Net realized capital gains ................. (4.33) (1.03) (2.65) -- --
-------- -------- ------- -------- -------
Total dividends and distributions to
shareholders ............................... (4.33) (1.03) (2.65) (0.01) --
-------- -------- ------- -------- -------
Net asset value, end of period ............. $ 19.95 $ 18.03 $ 12.52 $ 18.47 $ 11.67
======== ======== ======= ======== =======
Total investment return(1) ................. 46.77% 56.09% (20.74)% 58.41% (2.75)%
======== ======== ======= ======== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .. $134,803 $ 76,349 $99,266 $142,119 $14,100
Ratio of expenses to average net assets(2) . 1.00%(3) 1.00% 1.00% 1.00% 1.00%(3)
Ratio of expenses to average net assets
without waivers and expense
reimbursements .......................... 1.22%(3) 1.26% 1.23% 1.45% 3.45%(3)
Ratio of net investment income/(loss) to
average net assets(2) ................... (0.53)%(3) (0.46)% (0.41)% (0.06)% 0.73%(3)
Portfolio turnover rate .................... 142.99% 316.02% 408.70% 233.49% 42.92%
</TABLE>
<TABLE>
<CAPTION>
GROWTH FUND
---------------------------------------------------------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS ENDED FOR THE FISCAL FOR THE FISCAL FOR THE FISCAL JUNE 3, 1996*
FEBRUARY 29, 2000 YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
(UNAUDITED) AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996
----------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....... $ 14.89 $ 9.75 $ 16.29 $ 11.84 $ 12.00
------- ------- ------- -------- -------
Net investment income/(loss) ............... (0.06) (0.18) (0.07) (0.04) 0.01
Net realized and unrealized gain/(loss) on
investments and futures transactions,
if any .................................. 8.80 5.33 (3.98) 4.50 (0.17)
------- ------- ------- -------- -------
Net increase/(decrease) in net assets
resulting from operations ............... 8.74 5.15 (4.05) 4.46 (0.16)
------- ------- ------- -------- -------
Dividends and distributions to shareholders
from:
Net investment income ...................... -- -- -- (0.01) --
Net realized capital gains ................. (0.37) (0.01) (2.49) -- --
------- ------- ------- -------- -------
Total dividends and distributions to
shareholders ............................... (0.37) (0.01) (2.49) (0.01) --
------- ------- ------- -------- -------
Net asset value, end of period ............. $ 23.26 $ 14.89 $ 9.75 $ 16.29 $ 11.84
======= ======= ======= ======== =======
Total investment return(1) ................. 60.15% 52.80% (29.03)% 37.69% (1.33)%
======= ======= ======= ======== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .. $79,801 $62,376 $77,840 $117,724 $26,756
Ratio of expenses to average net assets(2) . 1.00%(3) 1.00% 1.00% 1.00% 1.00%(3)
Ratio of expenses to average net assets
without waivers and expense
reimbursements .......................... 1.24%(3) 1.30% 1.24% 1.40% 2.62%(3)
Ratio of net investment income/(loss) to
average net assets(2) ................... (0.61)%(3) (0.45)% (0.50)% (0.38)% 0.71%(3)
Portfolio turnover rate .................... 100.87% 309.60% 338.40% 266.25% 19.21%
<FN>
- -----------
* Commencement of operations.
(1) 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.
(2) Reflects waivers and reimbursements.
(3) Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
34 & 35
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
FINANCIAL HIGHLIGHTS (CONCLUDED)
- --------------------------------------------------------------------------------
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>
MID CAP FUND*
-----------------------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FISCAL FOR THE FISCAL FOR THE FISCAL
FEBRUARY 29, 2000 YEAR ENDED YEAR ENDED YEAR ENDED
(UNAUDITED) AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997
----------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period .............. $ 16.89 $ 13.30 $ 17.16 $ 11.56
------- ------- -------- -------
Net investment income ............................. 0.04 0.05 0.05 0.08
Net realized and unrealized gain/(loss) on
investments and futures transactions, if any ... 1.48 4.97 (1.24) 5.58
------- ------- -------- -------
Net increase/(decrease) in net assets resulting
from operations ................................ 1.52 5.02 (1.19) 5.66
------- ------- -------- -------
Dividends and distributions to shareholders from:
Net investment income ............................. (0.03) (0.06) (0.06) (0.06)
Net realized capital gains ........................ (1.97) (1.37) (2.61) --
------- ------- -------- -------
Total dividends and distributions to shareholders . (2.00) (1.43) (2.67) (0.06)
------- ------- -------- -------
Net asset value, end of period .................... $ 16.41 $ 16.89 $ 13.30 $ 17.16
======= ======= ======== =======
Total investment return(1) ........................ 10.66% 41.61% (8.97)% 49.11%
======= ======= ======== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ......... $41,262 $49,156 $110,176 $52,491
Ratio of expenses to average net assets(2) ........ 1.00%(3) 1.00% 1.00% 1.00%
Ratio of expenses to average net assets without
waivers and expense reimbursements ............. 1.57%(3) 1.33% 1.26% 1.81%
Ratio of net investment income/(loss) to average
net assets(2) .................................. 0.40%(3) 0.31% 0.36% 0.79%
Portfolio turnover rate ........................... 166.26% 384.71% 341.73% 263.83%
</TABLE>
<TABLE>
<CAPTION>
MID CAP FUND* LARGER CAP VALUE FUND
--------------- --------------------------------------------------------
FOR THE PERIOD FOR THE FOR THE PERIOD
JUNE 3, 1996** SIX MONTHS ENDED FOR THE FISCAL DECEMBER 9, 1997**
THROUGH FEBRUARY 29, 2000 YEAR ENDED THROUGH
AUGUST 31, 1996 (UNAUDITED) AUGUST 31, 1999 AUGUST 31, 1998
--------------- ----------------- --------------- ------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period .............. $12.00 $13.27 $ 10.84 $ 12.00
------ ------ ------- -------
Net investment income ............................. 0.03 0.14 0.19 0.06
Net realized and unrealized gain/(loss) on
investments and futures transactions, if any ... (0.47) (2.89) 2.58 (1.22)
------ ------ ------- -------
Net increase/(decrease) in net assets resulting
from operations ................................ (0.44) (2.75) 2.77 (1.16)
------ ------ ------- -------
Dividends and distributions to shareholders from:
Net investment income ............................. -- (0.14) (0.11) --
Net realized capital gains ........................ -- -- (0.23) --
------ ------ ------- -------
Total dividends and distributions to shareholders . -- (0.14) (0.34) --
------ ------ ------- -------
Net asset value, end of period .................... $11.56 $10.38 $ 13.27 $ 10.84
====== ====== ======= =======
Total investment return(1) ........................ (3.67)% (20.86)% 26.01% (9.67)%
====== ====== ======= =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ......... $3,813 $3,744 $ 8,256 $25,257
Ratio of expenses to average net assets(2) ........ 1.00%(3) 1.00%(3) 1.00% 1.00%(3)
Ratio of expenses to average net assets without
waivers and expense reimbursements ............. 8.98%(3) 2.94%(3) 1.80% 2.20%(3)
Ratio of net investment income/(loss) to average
net assets(2) .................................. 1.89%(3) 1.51%(3) 1.02% 1.26%(3)
Portfolio turnover rate ........................... 5.25% 115.57% 304.89% 166.81%
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND
---------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS ENDED NOVEMBER 30, 1998**
FEBRUARY 29, 2000 THROUGH
(UNAUDITED) AUGUST 31, 1999
----------------- -------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period .............. $12.86 $ 12.00
------ -------
Net investment income ............................. 0.08 0.10
Net realized and unrealized gain/(loss) on
investments and futures transactions, if any ... (1.63) 0.76
------ -------
Net increase/(decrease) in net assets resulting
from operations ................................ (1.55) 0.86
------ -------
Dividends and distributions to shareholders from:
Net investment income ............................. (0.10) --
Net realized capital gains ........................ (1.32) --
------ -------
Total dividends and distributions to shareholders . (1.42) --
------ -------
Net asset value, end of period .................... $ 9.89 $ 12.86
====== =======
Total investment return(1) ........................ (12.72)% 7.17%
====== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ......... $9,833 $11,498
Ratio of expenses to average net assets(2) ........ 1.00%(3) 1.00%(3)
Ratio of expenses to average net assets without
waivers and expense reimbursements ............. 2.31%(3) 2.59%(3)
Ratio of net investment income/(loss) to average
net assets(2) .................................. 1.41%(3) 1.15%(3)
Portfolio turnover rate ........................... 123.10% 212.55%
<FN>
- -----------
* Formerly known as Growth & Value Fund.
** Commencement of operations.
(1) 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.
(2) Reflects waivers and reimbursements.
(3) Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
36 & 37
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
MID CAP 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 seventeen 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 Mid Cap Fund ("Mid Cap Fund") (formerly known as "N/I NUMERIC
INVESTORS 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
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.
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 the RBB's Board of Directors, each 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
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.(REGISTRATION MARK) (the Funds'
"Adviser" or "Numeric") 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. 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.
38
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
MID CAP 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 correctly predict
movements in the direction of the market.
The risk of loss in trading futures contracts in some strategies can be
substantial, due both to the low margin deposits required, and the extremely
high degree of leverage involved in futures pricing. As a result, a relatively
small price movement in a futures contract may result in immediate and
substantial loss or gain to the investor. Thus, a purchase or sale of a futures
contract may result in losses or gains in excess of the amount invested in the
contract. None of the Funds had open futures contracts at February 29, 2000.
USE OF ESTIMATES -- The preparation of financial statements in conformity with
generally accepted accounting principals requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
DIVIDENDS AND DISTRIBUTIONS -- Dividends from net investment income and
distributions from net realized capital gains, if any, will be declared and paid
at least annually to shareholders. Income and capital gain distributions are
determined in accordance with U.S. federal income tax regulations which may
differ from generally accepted accounting principles. These differences can
include the treatment of non-taxable dividends, expiring capital loss
carryforwards, foreign currency gain/loss, and losses deferred due to wash sales
and excise tax regulations. Permanent book and tax basis differences relating to
shareholder distributions will result in reclassifications within the
composition of net assets.
39
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
MID CAP FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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.
For U.S. federal income tax purposes, realized capital losses incurred after
October 31, 1998, within the prior fiscal year ("post-October losses"), are
deemed to arise on the first day of the current fiscal year. Growth Fund and Mid
Cap Fund, incurred and elected to defer such losses of $401,297 and $435,208,
respectively.
At August 31, 1999 the Larger Cap Value Fund had a capital loss carryforward of
$14,809 which expires in 2007.
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,
accrued daily and paid monthly.
The Adviser has voluntarily agreed to limit each Fund's total operating expenses
until December 31, 2000 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 29, 2000, 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 .................................... $372,445 $ (40,250) $332,195 --
Growth Fund ....................................... 250,587 (33,723) 216,864 --
Mid Cap Fund* ..................................... 171,377 (101,825) 69,552 --
Larger Cap Value Fund ............................. 24,136 (24,136) -- $15,956
Small Cap Value Fund .............................. 39,695 (35,501) 4,194 --
<FN>
- -----------
* Formerly known as Growth & Value Fund.
</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 The PNC Financial
Services Group, Inc., 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.
40
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
MID CAP FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
For the six months ended February 29, 2000, PFPC, at its discretion, voluntarily
agreed to waive a portion of its co-administration fees for the Micro Cap,
Growth, Larger Cap Value and Small Cap Value Funds. 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 ............ $62,105 $ (4,966) $57,139
Growth Fund ............... 41,862 (2,744) 39,118
Mid Cap Fund* ............. 37,500 -- 37,500
Larger Cap Value Fund ..... 37,500 (12,500) 25,000
Small Cap Value Fund ...... 37,500 (18,750) 18,750
</TABLE>
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 29, 2000, transfer agency fees and waivers were as
follows:
GROSS NET
TRANSFER AGENCY TRANSFER AGENCY
FUND FEES WAIVERS FEES
- ---- --------------- -------- ---------------
Micro Cap Fund .............. $31,252 -- $31,252
Growth Fund ................. 26,988 -- 26,988
Mid Cap Fund* ............... 46,424 -- 46,424
Larger Cap Value Fund ....... 20,816 $(6,000) 14,816
Small Cap Value Fund ........ 19,893 (9,000) 10,893
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.
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
29, 2000, administrative services fees and waivers were as follows:
GROSS
ADMINISTRATIVE NET ADMINISTRATIVE
FUND SERVICES FEES WAIVERS SERVICES FEES
- ---- -------------- -------- ------------------
Micro Cap Fund ............. $74,489 $(64,557) $9,932
Growth Fund ................ 50,177 (43,486) 6,691
Mid Cap Fund* .............. 34,275 (27,420) 6,855
Larger Cap Value Fund ...... 4,827 (3,862) 965
Small Cap Value Fund ....... 7,939 (6,351) 1,588
- -----------
* Formerly known as Growth & Value Fund.
These fees are computed daily and paid monthly.
41
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
MID CAP 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 cost of securities owned at February
29, 2000 were $104,112,503, $55,222,590, $41,623,000, $4,056,753, and
$10,930,583 for Micro Cap Fund, Growth Fund, Mid Cap Fund, Larger Cap Value Fund
and Small Cap Value Fund, respectively. Accordingly, the net unrealized
appreciation/(depreciation) of investments were as follows:
GROSS GROSS NET APPRECIATION/
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
- ---- ------------ ------------ -----------------
Micro Cap Fund ............ $33,946,021 $(4,031,852) $29,914,169
Growth Fund ............... 28,430,752 (3,616,312) 24,814,440
Mid Cap Fund* ............. 4,989,704 (5,190,489) (200,785)
Larger Cap Value Fund ..... 40,988 (682,148) (641,160)
Small Cap Value Fund ...... 434,994 (1,630,750) (1,195,756)
For the six months ended February 29, 2000, aggregate purchases and sales of
investment securities (excluding short-term investments) were as follows:
FUND PURCHASES SALES
- ---- ------------ ------------
Micro Cap Fund ............................. $153,172,289 $138,909,857
Growth Fund ................................ 66,446,208 82,746,376
Mid Cap Fund* .............................. 73,821,455 85,904,879
Larger Cap Value Fund ...................... 7,215,305 10,566,612
Small Cap Value Fund ....................... 12,550,446 12,726,001
- -----------
* Formerly known as Growth & Value Fund.
42
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
MID CAP FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS
As of February 29, 2000 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 29, 2000 FISCAL YEAR ENDED
(UNAUDITED) AUGUST 31, 1999
----------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales ................................ 2,323,402 $ 34,458,481 381,712 $ 6,008,613
Repurchases .......................... 1,145,109) (18,453,046) (4,714,604) (73,124,102)
Reinvestments ........................ 1,344,665 17,843,711 636,739 7,781,380
--------- ------------ ---------- ------------
Net increase/(decrease) .............. 2,522,958 $ 33,849,146 (3,696,153) $(59,334,109)
========= ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
GROWTH FUND
---------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
FEBRUARY 29, 2000 FISCAL YEAR ENDED
(UNAUDITED) AUGUST 31, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sales ................................ 594,887 $ 9,944,415 779,158 $ 9,139,659
Repurchases .......................... (1,456,333) (25,268,866) (4,573,587) (56,544,582)
Reinvestments ........................ 101,679 1,470,267 3,862 37,113
---------- ------------ ---------- ------------
Net decrease ......................... (759,767) $(13,854,184) (3,790,567) $(47,367,810)
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
MID CAP FUND*
--------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
FEBRUARY 29, 2000 FISCAL YEAR ENDED
(UNAUDITED) AUGUST 31, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -------------
<S> <C> <C> <C> <C>
Sales ................................ 544,259 $ 8,652,664 927,772 $ 13,811,036
Repurchases .......................... (1,314,843) (20,958,378) (7,201,736) (109,304,768)
Reinvestments ........................ 373,721 5,370,369 897,920 11,153,016
---------- ------------ ---------- -------------
Net decrease ......................... (396,863) $ (6,935,345) (5,376,044) $ (84,340,716)
========== ============ ========== =============
<FN>
- -----------
* Formerly known as Growth & Value Fund.
</FN>
</TABLE>
43
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
MID CAP FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
LARGER CAP VALUE FUND
------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
FEBRUARY 29, 2000 FISCAL YEAR ENDED
(UNAUDITED) AUGUST 31, 1999
---------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
Sales ................................ 55,572 $ 684,411 247,019 $ 3,045,277
Repurchases .......................... (324,299) (3,915,627) (2,023,238) (26,042,313)
Reinvestments ........................ 6,976 85,808 68,164 786,614
-------- ----------- ---------- ------------
Net decrease ......................... (261,751) $(3,145,408) (1,708,055) $(22,210,422)
======== =========== ========== ============
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND
------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED PERIOD NOVEMBER 30, 1998**
FEBRUARY 29, 2000 THROUGH
(UNAUDITED) AUGUST 31, 1999
--------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Sales ................................ 47,718 $ 522,850 1,000,505 $11,856,127
Repurchases .......................... (67,199) (725,831) (106,258) (1,239,279)
Reinvestments ........................ 119,413 1,251,449 -- --
------- ---------- --------- -----------
Net increase ......................... 99,932 $1,048,468 894,247 $10,616,848
======= ========== ========= ===========
</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. The cash collateral is reinvested into repurchase agreements which
are in turn collateralized by various U.S. Treasury Bills. The market value of
securities on loan to brokers and the related value of cash collateral and
indemnification received at February 29, 2000, was as follows:
<TABLE>
<CAPTION>
MARKET VALUE OF SECURITIES
FUND ON LOAN MARKET VALUE OF COLLATERAL
- ---- -------------------------- --------------------------
<S> <C> <C>
Micro Cap Fund ................. $17,949,979 $18,255,361
Growth Fund .................... 9,603,378 9,778,577
Mid Cap Fund* .................. 2,237,069 2,282,888
Larger Cap Value Fund .......... 190,073 197,114
Small Cap Value Fund ........... 972,085 992,012
<FN>
- -----------
* Formerly known as Growth & Value Fund.
** Commencement of Operations.
</FN>
</TABLE>
44
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
MID CAP 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 the repurchase agreements with
Bear, Stearns & Co. Inc., outstanding at February 29, 2000:
<TABLE>
<CAPTION>
MICRO CAP FUND
-----------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST MARKET VALUE
- ------ --------- -------- ------------- ------------ -------- ------------
<S> <C> <C> <C> <C> <C> <C>
United States Treasury Note ................ $3,825 01/31/01 4.500% $3,763,418 $14,344 $3,777,762
========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
GROWTH FUND
-----------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST MARKET VALUE
- ------ --------- -------- ------------- ------------ -------- ------------
<S> <C> <C> <C> <C> <C> <C>
United States Treasury Bill ................ $1,475 05/18/00 -- $1,456,902 -- $1,456,902
========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
MID CAP FUND*
-----------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST MARKET VALUE
- ------ --------- -------- ------------- ------------ -------- ------------
<S> <C> <C> <C> <C> <C> <C>
United States Treasury Bill ................ $ 795 03/09/00 -- $ 793,982 -- $ 793,982
United States Treasury Strip ............... 7 02/15/10 -- 3,376 -- 3,376
---------- -------- ----------
Total ................................... $ 797,358 -- $ 797,358
========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND
-----------------------------------------------------------------------------
PRINCIPAL
AMOUNT ACCRUED TOTAL
ISSUER (000'S) MATURITY INTEREST RATE MARKET VALUE INTEREST MARKET VALUE
- ------ --------- -------- ------------- ------------ -------- ------------
<S> <C> <C> <C> <C> <C> <C>
United States Treasury Bill ................ $ 440 03/09/00 -- $ 369,526 -- $ 369,526
United States Treasury Note ................ 85 01/15/09 3.875% 82,290 $ 412 82,702
---------- ------ ----------
Total ................................... $ 451,816 $ 412 $ 452,228
========== ====== ==========
<FN>
- -----------
* Formerly known as Growth & Value Fund.
</FN>
</TABLE>
45
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
MICRO CAP FUND
GROWTH FUND
MID CAP FUND
LARGER CAP VALUE FUND
SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 7. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS
On November 22, 1999* a special meeting of the shareholders of the n/i numeric
investors Family of RBB was held for the purpose of approving an amendment to
the investment advisory agreement between RBB and Numeric.
The voting results are as follows:
FUND FOR AGAINST ABSTAINED NON-VOTES
- ---- --------- ------- --------- ---------
Micro Cap Fund* ........... 1,404,935 339,689 663,387 1,802,166
Growth Fund ............... 2,749,586 153,900 21,499 1,166,065
Mid Cap Fund** ............ 1,172,069 228,678 34,382 1,413,420
Larger Cap Value Fund ..... 145,069 209,774 4,244 252,431
Small Cap Value Fund ...... 786,702 5,052 1,685 99,185
As a result, until January 1, 2001, Numeric is entitled to a management fee of
0.75% of the Growth, Mid Cap and Small Cap Value Funds' average daily net assets
before fee waivers and expense reimbursements, if any. Thereafter, Numeric is
entitled to a performance based fee for the Growth, Mid Cap and Small Cap Value
Funds (advisory fees for the Micro Cap and Larger Cap Value Funds will remain
unchanged). The current fee of 0.75% would only increase if performance exceeds
the benchmark by 4.00% or more in a given 12-month period and would be less than
the current fee if performance does not exceed the benchmark by 3.00% in a given
12-month period. The performance based fee is calculated at the end of each
month using a basic fee of 0.85% of average daily net assets, and a performance
fee adjustment based upon each Fund's performance during the last rolling
12-month period. Each Fund's net performance would be compared with the
performance of its benchmark index during that same rolling 12-month period.
When a Fund's performance is at least 5.00% better than its benchmark, it would
pay Numeric more than the basic fee. If a Fund did not perform at least 4.00%
better than its benchmark, Numeric would be paid less than the basic fee. Each
1.00% of the difference in performance between a Fund and its benchmark plus
4.00% during the performance period would result in a 0.10% adjustment to the
basic fee. The benchmark index for each of the Growth, Mid Cap and Small Cap
Value Funds is the Russell 2500 Growth Index, S&P MidCap 400 Index and Russell
2000 Value Index, respectively.
- -----------
* The November 22, 1999 special meeting of the shareholders of the Fund was
adjourned until November 29, 1999 with respect to the Micro Cap Fund. As
such, the results stated for the Micro Cap Fund are from the November 29,
1999 meeting.
** Formerly known as Growth & Value Fund.
46
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
One Memorial Drive
Cambridge, MA 02142
1-800-numeric [686-3742]
http://www.numeric.com
INVESTMENT ADVISER
Numeric Investors L.P.(REGISTRATION MARK)
One Memorial Drive
Cambridge, MA 02142
CO-ADMINISTRATORS
Bear Stearns Funds Management Inc.
575 Lexington Avenue
New York, NY 10022
PFPC Inc.
Bellevue Corporate Center
400 Bellevue Parkway
Wilmington, DE 19809
DISTRIBUTOR
Provident Distributors, Inc.
3200 Horizons Drive
King of Prussia, PA 19406
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
One Logan Square
18th and Cherry Streets
Philadelphia, PA 19103
The financial information included herein is taken from the records of each Fund
without examination by independent auditors who do not express an opinion
thereon.
This report is submitted for the general information of the shareholders of each
Fund.It is not authorized for the distribution to prospective investors in each
Fund unless it is preceded or accompanied by a current prospectus which includes
details regarding each Fund's objectives, policies and other information. Total
investment return is based on historical results and is not intended to indicate
future performance. The 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.
<PAGE>
N/I NUMERIC INVESTORS
FAMILY OF FUNDS (LOGO)
[GRAPHIC OMITTED]
One Memorial Drive
Cambridge, MA 02142
1-800-numeric [686-3742]
http://www.numeric.com
