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BNY
HAMILTON
[LOGO]
SEMI-ANNUAL REPORT
LARGE CAP GROWTH
FUND
SMALL CAP GROWTH
FUND
INTERNATIONAL JUNE 30, 2000
EQUITY FUND
EQUITY INCOME FUND
LARGE CAP VALUE
FUND
S&P 500 INDEX FUND
INTERMEDIATE
GOVERNMENT FUND
INTERMEDIATE
INVESTMENT
GRADE FUND
U.S. BOND MARKET
INDEX FUND
INTERMEDIATE
TAX-EXEMPT FUND
INTERMEDIATE
NEW YORK BNY
TAX-EXEMPT FUND
HAMILTON
MONEY FUND
FUNDS
TREASURY
MONEY FUND INVEST WITH A TRUSTED LEADER
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BNY
HAMILTON
FUNDS
INVEST WITH A TRUSTED LEADER
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CHAIRMAN'S LETTER
Dear Shareholder:
Thank you for investing with BNY Hamilton Funds. We are pleased to provide you
with the Semi-Annual Report for the Funds for the six-month period ended
June 30, 2000.
In a challenging environment for fund managers and investors, The BNY Hamilton
Funds continued to enjoy significant growth and provide competitive performance
for our investors. During the first half of the year, total assets invested in
the Funds grew from $6.98 billion to $8.39 billion, an increase of more than
20%.
During this period, we expanded our fund offerings by launching six new
portfolios, including the BNY Large Cap Value Fund and our first passively
managed portfolios--the BNY Hamilton S&P 500 Index and the U.S. Bond Market
Index Funds. We also introduced three BNY Hamilton CRT Funds, designed
specifically for the investment needs of Charitable Remainder Trusts.
Of the ten BNY Hamilton Fund portfolios that were in existence at the start of
this year, nine produced positive total returns for investors through June 30th,
with only the BNY Hamilton International Equity Fund showing a negative return.
Over this six-month period the BNY Hamilton Large Cap Growth, Small Cap Growth
and Equity Income Funds all outperformed the averages for their peer group index
as determined by Lipper Analytical Services, an independent mutual fund rating
service.
The tax-exempt and taxable fixed income portfolios in the BNY Hamilton Funds,
which maintained their emphasis on high-quality holdings and conservative
maturities, performed competitively for the period. The BNY Hamilton Money Fund
and Treasury Money Fund also continued to provide attractive yields while
adhering to their strict quality standards.
The guiding philosophy behind the performance and ongoing management of all the
Funds is a disciplined long-term approach to investing that seeks to identify
the best investment opportunities, regardless of market conditions. Complete
details about BNY Hamilton Funds performance and a discussion of the investment
environment can be found in the pages that follow. You will want to read this
Semi-Annual Report carefully and retain it for your records.
At the BNY Hamilton Funds, we understand and appreciate the importance of your
investment. Given the volatility in the world's financial markets, we continue
to believe that a disciplined, well-considered investment plan is more important
than ever. With a broad range of well-diversified portfolios, each managed with
a consistent investment approach, the Funds are designed to provide you with
sound investment strategies to help you reach your important financial goals.
Thank you for the confidence you have placed in us.
Sincerely,
/s/ Edward L. Gardner
Edward L. Gardner
Chairman of the Board
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INVESTMENT ADVISOR'S LETTER
Dear Shareholder:
The economy roared into 2000 with a full head of steam. Booming capital spending
for high-tech equipment was the primary driver of the economy's strong forward
momentum, but consumers spent freely as well, particularly during the first
quarter. Real GDP expanded at a well above-trend annualized rate of better than
5.0% through the first half, continuing to surprise most forecasters. On the
positive side, corporate profits continued to surge, reaching new record levels.
On the negative side, energy prices also surged as OPEC demonstrated that it
could still flex its muscles. With the unemployment rate hovering near 4.0%, the
creation of more than one million new jobs during the first six months of this
year increased the strains in the labor market, and hints of rising wage
pressures began to emerge. Observing these developments, the Federal Reserve
continued to tighten monetary policy, raising short term interest rates by a
total of 100 basis points on top of the increase of 75 basis points during the
second half of last year.
How did the financial markets react to these developments? In the end, stock and
bond prices generally closed at price levels not far from where they began the
year. Bonds outperformed stocks based on the higher income streams they
provided. The Lehman Brothers Aggregate Bond Index of taxable investment grade
bonds provided a total return of 3.98% for the first half of the year. The
return provided by the S&P 500 was -0.42% over the same period. While these
returns might suggest that the first half was a fairly quiet period for the
markets, the reality was altogether different, particularly for stocks.
Stock market volatility soared to extreme levels as leadership rotated between
"old economy" and "new economy" issues. Building on its extraordinary gains
during the second half of 1999, the technology-heavy NASDAQ Composite, which
serves as a good proxy for the "new economy," climbed by a further 20%+ to above
the 5000 level by mid-March, then plunged by 37% to near 3000 in late May before
rallying late in the second quarter to record a total return of -2.54% for the
half. The Dow Industrials, which is viewed as a proxy for the "old economy,"
declined by more than 15% from its early January high above 11700 to its early
March low below 9800 before recovering somewhat to post a first half total
return of -8.44%, the poorest performance of the major indices. In international
equity markets, second quarter weakness more than offset modest first quarter
gains for the MSCI-EAFE (Morgan Stanley Capital International--Europe,
Australasia and Far East) Index, which provided a first half total return of
-3.95%. Weakness in the Japanese market and strength in the U.S. dollar relative
to both the yen and the euro were the primary factors weighing on the returns
provided by non-U.S. stocks.
The key underpinning to the recovery in U.S. stocks late in the first half was
increasing evidence that the pace of economic activity was, in fact, beginning
to decelerate in reaction to the Fed's series of interest rate hikes. Concerns
that the Fed might be forced to raise interest rates more aggressively to keep
inflation in check, potentially putting the continuing expansion in the economy
at risk, dissipated as retail sales, housing starts and auto sales all showed
signs of softness. As the first half came to a close, stock market investors'
concerns were shifting from fears that rising inflationary pressures would put
downward pressure on P/E ratios toward anxieties that slowing economic activity
would put downward pressure on corporate profits.
Bond market investors viewed these same developments in a much more favorable
light as slower economic activity suggested reduced risks on the inflation
front. In contrast to earlier periods of Fed tightenings, bond prices held up
surprisingly well during the first half. In part this reflected investors'
confidence that the Fed would take whatever
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measures were necessary to keep inflation in check; it also reflected the fact
that bond prices had traded down sharply in 1999 in advance of the Fed's actions
this year. While the target federal funds rate rose from 5.75% to 6.50% during
the first half, the 10-year Treasury Note yield declined from 6.61% to 6.18%
over this same period as the Treasury yield curve inverted. Benefiting from the
Treasury's use of the federal budget surplus to reduce the outstanding supply of
government securities, the Treasury sector was the best performing sector of the
bond market in the first half. In the broader fixed income market, credit
spreads widened and the yield curves for corporate and municipal issues remained
positively sloped.
The hallmark of the current record-long expansion in the U.S. economy has been a
remarkable combination of above-trend growth and below-trend inflation. From
time to time, as was the case earlier this year, investors' confidence in the
sustainability of this combination is tested by a new development that threatens
to undermine the equilibrium in the economic fundamentals and bring back the
boom/bust business cycle of prior years. We remain alert to the potential for
conditions to change in this way, but, as has been our view for some time, our
judgment is that the economy remains firmly on a non-inflationary growth course.
Keen global competition and strong productivity gains are among the powerful
trends we see helping to keep the economy on this course. As it has proved to be
over the past several years, we believe that this set of economic fundamentals
will provide a continued supportive backdrop for the financial markets through
the balance of this year and well into 2001.
Sincerely,
/s/ Kevin J. Bannon
Kevin J. Bannon
Executive Vice President and
Chief Investment Officer
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TABLE OF CONTENTS
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QUESTIONS & ANSWERS................................................... PAGE 1
BNY HAMILTON LARGE CAP GROWTH FUND
Schedule of Investments............................................. 26
Statement of Assets and Liabilities................................. 29
Statement of Operations............................................. 29
Statements of Changes in Net Assets................................. 30
Financial Highlights................................................ 31
BNY HAMILTON SMALL CAP GROWTH FUND
Schedule of Investments............................................. 33
Statement of Assets and Liabilities................................. 37
Statement of Operations............................................. 37
Statements of Changes in Net Assets................................. 38
Financial Highlights................................................ 39
BNY HAMILTON INTERNATIONAL EQUITY FUND
Schedule of Investments............................................. 41
Industry Diversification............................................ 46
Statement of Assets and Liabilities................................. 48
Statement of Operations............................................. 48
Statements of Changes in Net Assets................................. 49
Financial Highlights................................................ 50
BNY HAMILTON EQUITY INCOME FUND
Schedule of Investments............................................. 52
Statement of Assets and Liabilities................................. 56
Statement of Operations............................................. 56
Statements of Changes in Net Assets................................. 57
Financial Highlights................................................ 58
BNY HAMILTON LARGE CAP VALUE FUND
Schedule of Investments............................................. 60
Statement of Assets and Liabilities................................. 62
Statement of Operations............................................. 62
Statements of Changes in Net Assets................................. 63
Financial Highlights................................................ 64
BNY HAMILTON S&P 500 INDEX FUND
Schedule of Investments............................................. 65
Statement of Assets and Liabilities................................. 75
Statement of Operations............................................. 75
Statements of Changes in Net Assets................................. 76
Financial Highlights................................................ 77
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
Schedule of Investments............................................. 78
Statement of Assets and Liabilities................................. 82
Statement of Operations............................................. 82
Statements of Changes in Net Assets................................. 83
Financial Highlights................................................ 84
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
Schedule of Investments............................................. PAGE 86
Statement of Assets and Liabilities................................. 91
Statement of Operations............................................. 91
Statements of Changes in Net Assets................................. 92
Financial Highlights................................................ 93
BNY HAMILTON U.S. BOND MARKET INDEX FUND
Schedule of Investments............................................. 95
Statement of Assets and Liabilities................................. 98
Statement of Operations............................................. 98
Statements of Changes in Net Assets................................. 99
Financial Highlights................................................ 100
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
Schedule of Investments............................................. 101
Diversification by State............................................ 111
Statement of Assets and Liabilities................................. 112
Statement of Operations............................................. 112
Statements of Changes in Net Assets................................. 113
Financial Highlights................................................ 114
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
Schedule of Investments............................................. 116
Statement of Assets and Liabilities................................. 122
Statement of Operations............................................. 122
Statements of Changes in Net Assets................................. 123
Financial Highlights................................................ 124
BNY HAMILTON MONEY FUND
Schedule of Investments............................................. 126
Statement of Assets and Liabilities................................. 136
Statement of Operations............................................. 136
Statements of Changes in Net Assets................................. 137
Financial Highlights................................................ 138
BNY HAMILTON TREASURY MONEY FUND
Schedule of Investments............................................. 141
Statement of Assets and Liabilities................................. 143
Statement of Operations............................................. 143
Statements of Changes in Net Assets................................. 144
Financial Highlights................................................ 145
NOTES TO FINANCIAL STATEMENTS......................................... 148
REPORT OF INDEPENDENT AUDITORS........................................
DIRECTORS AND OFFICERS................................................ 156
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BNY HAMILTON LARGE CAP GROWTH FUND
AN INTERVIEW WITH CHARLES GOODFELLOW, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR LARGE CAP STOCKS
DURING THE FIRST HALF OF 2000?
A. The economy continued to grow at a rapid pace during the first six months of
2000, prompting the Federal Reserve to raise interest rates three
times--twice during the first quarter and once during the second. The rate
hikes, which totaled 1%, led to heightened market volatility throughout the
period. During the first quarter, investors continued to favor large company
stocks that produced strong earnings and revenue growth. This helped the S&P
500 Index to produce solid gains for the first three months of 2000. The
picture changed significantly in April as technology and other stocks that
had soared to excessive levels during the market's winter run-up experienced
significant fallout. Investor confidence returned in June, when some economic
indicators began to show that the U.S. economy was beginning to slow. As a
result, large company growth stocks rebounded somewhat in price, although not
enough to return the S&P 500 Index to positive territory for the first half
of the year.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM DURING THE PERIOD?
A. The Fund closed the first half of 2000 with performance well above its peer
group and significantly ahead of its benchmarks. With a total return of
12.17% for Institutional Class Shares and 12.07% for Investor
Class Shares(1) for the six month period ended June 30, 2000, the Fund
compared very favorably with the Lipper Growth and Income Fund Index(2),
which returned -0.87%, and the S&P 500-Registered Trademark- Index(3), which
posted a return of -0.42% for the same period.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S STRONG PERFORMANCE?
A. Stock selection was a major contributor to the Fund's performance,
particularly as the markets encountered significant volatility through the
second quarter of the year. Nine of the Fund's ten largest holdings
outperformed the S&P 500 Index during the first half of this year. The Fund's
technology exposure, which was focused in computer software and systems,
semiconductors and telecommunications equipment, avoided most of the Internet
disasters of the second quarter. Our exposure to health care, energy and
financial sector investments also boosted Fund performance significantly.
Q. WHICH STOCKS PERFORMED PARTICULARLY WELL?
A. Four of the Fund's ten largest holdings had returns in excess of 40% for the
period. These included Corning, Enron, EMC and Intel. Corning is on the
cutting edge of research and development in fiber optic cable, providing part
of the broadband pipeline to the Internet and telecom providers. Enron, which
many investors still regard as a natural gas company, is building a global
broadband network using its existing interstate gas pipeline as a platform
for carrying high speed data. EMC, which is a leading maker of memory storage
and retrieval systems for large mainframe computers, expanded its
capabilities with a line of innovative products to support Internet-based
storage networks. As the demand for high-speed voice and data networks
continues to expand, so should the prospects for each of these companies.
1
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Following lackluster performance last year, several other holdings in the
Fund performed strongly in the first half of this year, including Pfizer,
Schlumberger, BestFoods and Disney, each of which contributed returns in
excess of 30%.
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. After several interest rate increases, we believe the economy has begun to
slow to a more moderate and sustainable growth rate. We expect inflation to
increase somewhat, but to remain under control. Corporate profits should
continue to grow at a healthy pace across a broad array of industries.
High volatility in the market is likely to continue and returns for 2000 may
not be as robust as in recent years. However, we believe that careful stock
selection with a focus on companies with sustainable growth prospects should
contribute to favorable relative performance. We remain confident that our
style of investing will continue to provide superior returns over the long
term.
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TRAILING TRAILING SINCE
CURRENT TRAILING YEAR TRAILING 3 YEARS 5 YEARS INCEPTION
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE 12 MONTHS ANNUALIZED ANNUALIZED ANNUALIZED
BNY HAMILTON LARGE CAP GROWTH
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FUND (INSTITUTIONAL SHARES) 6.72% 1.73% 12.17% 33.00% 27.63%(4) 28.43%(4) 18.98%(4)
LIPPER GROWTH AND INCOME FUND
INDEX -0.38% -2.51% -0.87% -0.63% 11.29% 16.73% 14.16%
S&P 500 INDEX 2.47% -2.66% -0.42% 7.25% 19.66% 23.80% 17.80%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
(2) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
(3) The S&P 500 is considered representative of the broad U.S. market of
large-capitalization stocks.
(4) The quoted performance includes performance of common and collective
trust fund ("Commingled") accounts advised by The Bank of New York dating
back to 6/30/88 and prior to the Fund's commencement of operations on
4/1/97, as adjusted to reflect the expenses associated with mutual funds.
The Commingled accounts were not registered with the Securities and
Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If the Commingled
accounts had been registered, the Commingled accounts' performance may
have been adversely affected. The adviser has agreed to assume a portion
of the expenses for this Fund. Had expenses not been assumed, total
return and the average annual total return would have been lower. This
voluntary waiver and assumption of expenses may be modified or terminated
at any time, which would reduce the Fund's performance.
2
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BNY HAMILTON SMALL CAP GROWTH FUND*
AN INTERVIEW WITH JOHN LUI, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR SMALL CAP STOCKS IN
THE FIRST SIX MONTHS OF 2000?
A. Structurally, the first half of 2000 was very similar to the first half of
1999. During the first quarter, stronger than expected fundamentals set the
stage for continued out-performance by growth-oriented small cap stocks, as
investors showed a willingness to buy companies able to generate steady top
line and earnings growth. Investors flip-flopped in the second quarter of
this year, just as they did in 1999. This time, however, inflationary
concerns consumed the market as the Federal Reserve implemented a series of
interest rate hikes. Although the company specific fundamentals that
delivered such good news in the first quarter still seemed to be intact, most
market indexes were off in April and May as investors worried that the
dramatic credit tightening would stall the economic expansion. During this
period of increasing volatility, the market broadened away from
growth-oriented issues, especially small cap stocks. By the end of the second
quarter, these issues rallied again, as investors began to gain confidence
that the Federal Reserve was near the end of its tightening cycle.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund performed well against this backdrop, returning 8.60% for
Institutional Class Shares and 8.60% for Investors Class Shares(1) for the
six month period ended June 30, 2000. In comparison, the Russell 2000
Index(2) and the Lipper Small-Cap Fund Index(3) returned 3.03% and 4.58%,
respectively, for the same period.
Q. WHAT ACCOUNTED FOR THE FUND'S STRONG OUTPERFORMANCE?
A. While volatility is an unsettling part of investing, we continue to take
steps to mitigate its impact on overall Fund performance. The Fund's
bottom-up stock selection strategy focuses on small companies that are
growing faster than their peers and whose long-term growth rate we believe is
underestimated. This emphasis on what we call "mini-gorillas"--companies that
are best-in-their-niche and offer predictable, sustainable earnings
growth--helped us to identify attractive portfolio holdings with good
appreciation potential, despite the shift in sentiment from growth to value,
and then back to growth. It also helped us to outperform our peer group.
The Fund continued to emphasize the technology, consumer, and healthcare
sectors, because we believe these areas exhibit the best secular relative
earnings strength. We maintained our overweighting in the energy sector
during the period, as recent quarterly earnings reports indicate a cyclical
recovery is in place for at least the next two years.
Q. WHAT WERE SOME OF THE FUND'S BEST PERFORMING SECTORS DURING THE PERIOD?
A. The healthcare, energy, and technology sectors enjoyed the best relative
earnings strength during the first six months of the year. In healthcare, our
focus on biotechnology companies with new product cycles and proven
distribution capabilities paid off as many of these stocks posted triple
digit returns in the first half of 2000. As deregulation continued in the
energy sector, our exposure to North American natural gas plays also proved
beneficial. Finally, our technology picks remained focused on
communications-oriented companies and other companies that provide the
essential infrastructure needed to thrive in this increasingly
digital-wireless-data environment.
3
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Q. WHAT DO YOU FORESEE FOR THE REST OF THE YEAR?
A. Looking ahead, we continue to see enormous opportunity in the small cap
market. The transition to a digital-wireless-data world is still in its
infancy and investors are only just beginning to recognize the power of this
trend. However, as businesses adapt to new best practices by deploying the
technological infrastructure our small cap firms provide, the transition will
not always be smooth. The stock market environment during the first half of
2000 demonstrated that as this transformation in the economy unfolds, it will
bring both opportunity and risk. We have long anticipated this fact and have
gradually increased the number of holdings in the Fund's portfolio. In 1997,
the Fund held 40-45 issues; today there are 110. By increasing our
diversification, we believe we are well positioned to minimize volatility in
the Fund and to take advantage of the opportunities we see for
well-positioned companies in a digital-wireless-data world.
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TRAILING TRAILING SINCE
CURRENT TRAILING YEAR TRAILING 3 YEARS 5 YEARS INCEPTION
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE 12 MONTHS ANNUALIZED ANNUALIZED ANNUALIZED
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BNY HAMILTON SMALL CAP GROWTH
FUND (INSTITUTIONAL SHARES) 19.98% -4.48% 8.60% 80.44% 34.23%(4) 30.23%(4) 23.88%(4)
LIPPER SMALL CAP FUND INDEX 12.97% -5.95% 4.58% 35.27% 16.78% 17.10% 18.20%
RUSSELL 2000 8.72% -3.78% 3.03% 14.33% 10.57% 14.26% 13.61%
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Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
* Small-capitalization funds typically carry additional risks, since smaller
companies historically have experienced a greater degree of market
volatility.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
(2) The Russell 2000 Index is considered representative of the broad U.S.
market of small-capitalization stocks.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
(4) The quoted performance includes performance of common and collective
trust fund ("Commingled") accounts advised by The Bank of New York dating
back to 12/31/90 and prior to the Fund's commencement of operations on
4/1/97, as adjusted to reflect the expenses associated with mutual funds.
The Commingled accounts were not registered with the Securities and
Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If the Commingled
accounts had been registered, the Commingled accounts' performance may
have been adversely affected. The adviser has agreed to assume a portion
of the expenses for this Fund. Had expenses not been assumed, total
return and the average annual return would have been lower. This
voluntary waiver and assumption of expenses may be modified or terminated
at any time, which would reduce the Fund's performance.
4
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BNY HAMILTON INTERNATIONAL EQUITY FUND*
AN INTERVIEW WITH MARY CLARE BLAND, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR INTERNATIONAL STOCKS
DURING THE FIRST HALF OF 2000?
A. During the first six months of the year, international stock markets mirrored
the general performance of the U.S. markets. After a strong beginning to the
year, when growth stocks staged a powerful rally, markets corrected sharply
in March and April, as concerns about rising interest rates and inflation in
the U.S. fueled significant market volatility and sparked a powerful
technology stock sell-off worldwide. Against this backdrop, economic growth
in Europe strengthened during this period, despite weakness in the euro and a
series of interest rate hikes imposed by the European Central Bank, which
sought to contain inflation below 2%-the European Union's self-imposed limit.
Corporate restructuring and merger and acquisition activity continued at a
record-breaking pace, which should improve the outlook for corporate profits
and provide positive news for European markets going forward.
Despite many signs of improvement, the long-awaited economic upturn in Japan
failed to take a firm hold during the first half of 2000. A growing budget
deficit and a lackluster economy held back most equities, as investors shied
away from technology stocks on fears that valuations were too high and profit
expectations would not be met. Elsewhere in Asia and in Latin America,
markets fared better as economies improved and structural reforms were
implemented.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. For the six-month period ended June 30, 2000, the Fund returned -12.43% for
Institutional Class Shares and -12.51% for Investor Class Shares.(1) For the
same period, the Lipper International Fund Index(2) returned -4.11%, and the
MSCI EAFE Index(3) returned -3.95%.
Q. WHAT ACCOUNTED FOR THE FUND'S UNDERPERFORMANCE DURING THE PERIOD?
A. The Fund's overweighting in the technology sector hampered performance during
the first six months of the year, as telecommunications and Internet
companies fell sharply out of favor in markets around the world. The Fund's
overweighting in Japan also hurt its performance relative to its benchmark.
After last year's strong gains, Japan experienced a dramatic sell-off in the
technology sector. Weakness in the euro also put a drag on the Fund's
results, lowering the performance of the Fund's European holdings in dollar
terms.
On a positive note, several of the Fund's holdings contributed favorably to
performance during the period. French telecommunications equipment
manufacturer Alcatel, the ninth largest holding in the Fund, was up 50.7% for
the first half of the year. Nokia, the Finnish mobile handset manufacturer
and the second largest holding in the Fund, continued to be a winner. The
stock was up 18.8% for the period.
Q. HOW DID THE FUND'S PORTFOLIO COMPOSITION CHANGE DURING THE PERIOD?
A. We trimmed our weighting in Europe and Asia slightly during the first half of
the year and increased the Fund's exposure to Japan. This was based on the
attractive valuations and considerable long-term growth potential we believe
is evident there. Capital spending, particularly for technology, and
corporate profits are gaining strength, as deregulation and restructuring
efforts have already yielded an increase in direct foreign investment.
5
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On a sector basis, the Fund continued to be overweighted in
telecommunications services, underweighted in consumer goods, and neutral in
the energy and financial services sectors.
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. Despite market volatility, we remain positive in our outlook and expect
further economic recovery to boost international markets in the months ahead.
European economic activity continues to accelerate through much of the region
and inflation remains low. This should improve the outlook for corporate
earnings growth, as should continued deregulation and corporate
restructuring. However, the threat of continued volatility will necessitate
careful monitoring of our positions in the months ahead.
We remain optimistic about the long-term outlook for Japan. Rising
employment, healthy consumer spending and further restructuring should lead
to continued improvement in the Japanese market. However, we are increasingly
concerned about the short-term outlook as the Bank of Japan becomes more
inclined to move away from its zero interest rate policy. As a result, we are
trimming our Japanese positions back to market weight for the immediate
future. We intend to increase the Fund's weighting in Europe accordingly.
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TRAILING TRAILING TRAILING SINCE
CURRENT TRAILING YEAR 12 3 YEARS 5 YEARS INCEPTION
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE MONTHS ANNUALIZED ANNUALIZED ANNUALIZED
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON INTERNATIONAL
EQUITY FUND (INSTITUTIONAL
SHARES) 2.92% -7.79% -12.43% 22.21% 12.74% N/A 16.10%
LIPPER INTERNATIONAL FUND
INDEX 4.63% -4.70% -4.11% 23.63% 11.91% 14.43% 16.09%
MSCI EAFE INDEX 3.93% -3.90% -3.95% 17.46% 10.48% 11.63% 13.85%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
* International investing involves increased risk and volatility.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The adviser has agreed to assume a portion of the
expenses for this Fund. Had expenses not been assumed, total return and
the average annual return would have been lower. This voluntary waiver
and assumption of expenses may be modified or terminated at any time,
which would reduce the Fund's performance. The inception date for BNY
Hamilton International Equity Fund (Institutional Shares) was 4/1/97.
(2) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
(3) The MSCI EAFE Index is considered representative of the equity markets in
Europe, Australia, Asia and the Far East.
6
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
AN INTERVIEW WITH ROBERT KNOTT, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR EQUITY INCOME FUNDS
DURING THE FIRST HALF OF 2000?
A. After experiencing continued growth through much of the first quarter of
2000, uncertainty grabbed a foothold beginning in March and the markets
reversed course through the second quarter. Stock prices experienced
significant day-to-day volatility as different sectors of the market rotated
quickly in and out of favor. Two factors in particular contributed to the
sustained second quarter pullback among the major U.S. equity indexes--
further tightening of monetary policy by the Federal Reserve and the bursting
of the speculative bubble in technology stocks, especially among Internet
companies.
Against this backdrop, we continued to focus on a mix of high-quality,
dividend-paying large-cap stocks and income-producing securities of companies
that have maintained sound fundamentals and solid growth.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund performed very well, returning 5.75% for Institutional Class Shares
and 5.58% for Investor Class Shares(1) for the six-month period ended
June 30, 2000. This placed the Fund significantly ahead of its benchmark, the
Lipper Equity Income Fund Index(2), which returned -2.22%. The S&P 500
Index(3) returned -0.42% over the same period.
The Fund also outperformed the S&P 500 Index on a yield basis, providing a
yield of 1.7% after expenses, compared with 1.1% for the S&P 500.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S STRONG PERFORMANCE?
A. The Fund's focus on high-quality, dividend-paying large-cap stocks helped
boost performance during the first six months of the year. However, the
biggest contributor to the Fund's success in this period were Real Estate
Investment Trusts (REITs). After more than two years of underperformance,
REITs produced attractive returns on the strength of solid fundamentals and
relatively low valuations.
Also helping the Fund's performance was our commitment to convertible
securities, which helped to cushion the Fund during the market's volatile ups
and downs. Convertibles allow us to participate in a company's upside and, at
the same time, provide a degree of downside protection.
Q. WHAT STOCKS PERFORMED WELL FOR THE FUND?
A. Corning performed very well, up 107% since the start of the year. Corning is
on the cutting edge of research and development in fiber optic cable, an
essential component of the broadband pipeline to the Internet and telecom
providers. Enron was another standout performer, up 55% for the period.
Enron, a natural gas company, is well positioned to benefit from the ongoing
deregulation of power markets in the U.S. and abroad. However, we believe
that it is actually Enron's focus on building a global broadband network for
high speed data by leveraging its existing interstate gas pipeline that
ultimately will boost the company's long-term growth potential. Other stocks
that contributed to the Fund's performance were Intel, which gained 60%, and
Merrill Lynch, up 41% for the period.
7
<PAGE>
Q. HOW DID THE PORTFOLIO'S COMPOSITION CHANGE DURING THE PAST SIX MONTHS?
A. During the first two quarters of the year, we boosted our exposure to
utilities, financials, REITs and convertibles, trimming slightly the Fund's
weighting in the more lackluster performing healthcare, consumer staples and
service sectors. Although we consistently took profits in the technology
sector during the first half of the year in order to maintain our risk/return
profile, the Fund's technology weighting remained relatively steady at
16.71%, largely as a result of price appreciation.
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. Looking ahead, we expect market volatility to continue. While the outlook for
interest rates remains unclear and the upcoming election in November adds
another element of uncertainty, we nonetheless believe that the environment
for equities remains largely favorable. We remain committed to our investment
discipline--seeking out strong companies with solid long-term growth
prospects. Meanwhile, the current environment gives us a great opportunity to
add to some of our positions and to look for new income-producing securities,
particularly REITs and convertibles, that can provide an added measure of
income and stability to the Fund.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
<CAPTION>
TRAILING TRAILING SINCE
CURRENT TRAILING YEAR TRAILING 3 YEARS 5 YEARS INCEPTION
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE 12 MONTHS ANNUALIZED ANNUALIZED ANNUALIZED
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON EQUITY INCOME
FUND (INSTITUTIONAL SHARES) 3.29% -0.04% 5.75% 11.72% 14.68%(4) 18.13%(4) 14.98%(4)
LIPPER EQUITY INCOME FUND
INDEX -2.15% -1.43% -2.22% -6.57% 8.00% 14.04% 13.25%
S&P 500 INDEX 2.47% -2.66% -0.42% 7.25% 19.66% 23.80% 19.96%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
(2) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
(3) The S&P 500 is considered representative of the broad U.S. market of
large-capitalization stocks.
(4) Total return figures are shown at net asset value for all periods. These
figures do not consider the effect of the sales load in effect from
July 11, 1994-July 12, 1996. Had the sales load been factored in to the
above figures, average annual total return for 3 years, 5 years and since
inception would have been lower. The quoted performance for the
Institutional Shares prior to their inception on 4/1/97 is based on the
performance of the Fund's Investor Shares, adjusted to reflect fees and
expenses. The inception date for the Investor Shares of the Fund was
August 10, 1992.
8
<PAGE>
BNY HAMILTON LARGE CAP VALUE FUND
AN INTERVIEW WITH CHARLES FOLEY AND GEORGE BAKER, MANAGING DIRECTORS AND CO-
PORTFOLIO MANAGERS
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR LARGE CAP VALUE STOCKS
DURING THE FIRST HALF OF 2000?
A. For the six month period ending June 30, 2000 the U.S. equity markets labored
as monetary policy was tightened and liquidity was drained from the U.S.
economy by the Federal Reserve. Volatility heightened, especially in the
second quarter, as rising interests rates took their toll and investors
became concerned about economic growth, inflation and historically high stock
valuations. For the first half of 2000 the Russell 1000 Value Index fell
4.2%.
During the period, market sentiment favored depressed large drug company and
selected proven information technology issues, sensing less economic slowdown
sensitivity in these industries. Oil field service stocks also did well as
energy prices exceeded previously held consensus expectations.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM DURING THE PERIOD?
A. The Large Cap Value Fund, which was launched on April 28, 2000, returned
-3.21% for Institutional Class Shares(1) for the two-month period ended June
30, 2000. For the same period, the Lipper Large Cap Value Fund Index(2)
returned -1.99% and the S&P 500 Index(3) returned -0.36%.
Q. WHICH STOCKS PERFORMED WELL FOR THE FUND?
A. Johnson & Johnson, for the reasons mentioned above, as well as PNC Financial
and Costco Wholesale were strong performers for the Fund. PNC and Costco are
responding to hopes of less restrictive monetary policy toward year end.
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. Finally, after six successive increases in the federal funds rate by the
Federal Reserve, the U.S. economy appears to be responding with a slower
growth rate. In our opinion, this development should be received positively.
While selected companies will see their earnings potential diminished by
slower economic growth, the likelihood that the Fed is close to finished
raising rates for this cycle should be favorable news for equity investors.
From a value-oriented perspective, we favor bank stocks and selected capital
equipment stocks, such as Honeywell, United Technologies, and Dover
Corporation.
9
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
<CAPTION>
AGGREGATE TRAILING TRAILING
CUTOTAL TRAILING YEAR TRAILING 3 YEARS 5 YEARS
PERIODS ENDED JUNE 30, 2000 RETURN 3 MONTHS TO DATE 12 MONTHS ANNUALIZED ANNUALIZED
BNY HAMILTON LARGE CAP VALUE
<S> <C> <C> <C> <C> <C> <C>
FUND (INSTITUTIONAL SHARES) -3.88% N/A N/A N/A N/A N/A
LIPPER LARGE CAP VALUE FUND -1.10% -2.13% -1.99% -2.38% 12.06% 17.69%
S&P 500 INDEX 2.47% -2.66% -0.42% 7.25% 19.66% 23.80%
<CAPTION>
<S> <C>
FUND (INSTITUTIONAL SHARES) -3.21%
LIPPER LARGE CAP VALUE FUND -1.03%
S&P 500 INDEX 0.36%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE, SO THAT AN INVESTOR'S SHARE, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The Advisor has agreed to limit the expenses of the Fund
to 0.80% of its average daily net assets. The Advisor will waive
management fees and, if necessary, reimburse expenses of the Fund to the
extent that total annual operating expenses are greater than 0.80% of its
average daily net assets. Management reserves the right to implement and
discontinue expense limitations at any time. Inception date for this Fund
was April 28, 2000.
(2) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
analytical Services, Inc.
(3) The S&P 500 is considered representative of the broad U.S. market of
large-capitalization stocks.
10
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
AN INTERVIEW WITH KURT ZYLA (VICE PRESIDENT) AND TRACY HEMMI (ASSISTANT VICE
PRESIDENT), CO-PORTFOLIO MANAGERS
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR LARGE CAP STOCKS
DURING THE FIRST HALF OF 2000?
A. The economy continued to grow at a rapid pace during the first six months of
2000, prompting the Federal Reserve to raise interest rates three
times--twice during the first quarter and once during the second. The rate
hikes, which totaled 1%, led to heightened market volatility throughout the
period. During the first quarter, investors continued to favor large company
stocks that produced strong earnings and revenue growth. This helped the S&P
500 Index to produce solid gains for the first three months of 2000. The
picture changed significantly in April as technology and other stocks that
had soared to excessive levels during the market's winter run-up experienced
significant fallout. Investor confidence returned in June, when some economic
indicators began to show that the U.S. economy was beginning to slow. As a
result, large company growth stocks rebounded somewhat in price, although not
enough to return the S&P 500 Index to positive territory for the first half
of the year.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM DURING THE PERIOD?
A. The S&P 500 Index Fund is passively managed to track the risk and return
characteristics of the S&P 500 Index. The Fund, which was launched on
April 28, 2000, returned 0.41% for Institutional Class Shares(1) for the
two-month period ended June 30, 2000, as compared to 0.36% for the S&P 500
Index(2) for the same period.
Q. WHAT IS YOUR STRATEGY GOING FORWARD?
A. We will continue to follow a passive strategy designed to match the
investment composition and performance of the S&P 500 Index.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
<CAPTION>
TRAILING TRAILING AGGREGATE
CURRENT TRAILING YEAR TRAILING 3 YEARS 5 YEARS TOTAL
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE 12 MONTHS ANNUALIZED ANNUALIZED RETURN
BNY HAMILTON S&P 500 INDEX
<S> <C> <C> <C> <C> <C> <C> <C>
FUND (INSTITUTIONAL SHARES) 2.57% N/A N/A N/A N/A N/A 0.41%
LIPPER S&P 500 FUND INDEX3 2.43% -2.74% -0.60% 6.90% 19.34% 23.49% 0.30%
S&P 500 INDEX 2.47% -2.66% -0.42% 7.25% 19.66% 23.80% 0.36%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE, SO THAT AN INVESTOR'S SHARE, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The Advisor has agreed to limit the expenses of the Fund
to 0.35% of its average daily net assets. The Advisor will waive
management fees and, if necessary, reimburse expenses of the Fund to the
extent that total annual operating expenses are greater than 0.35% of its
average daily net assets. Management reserves the right to implement and
discontinue expense limitations at any time. Inception date for this Fund
was April 28, 2000.
(2) The S&P 500 is considered representative of the broad U.S. market of
large-capitalization stocks.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
11
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
AN INTERVIEW WITH WILLIAM BAIRD, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR U.S. GOVERNMENT BONDS
DURING THE FIRST HALF OF 2000?
A. The first six months of the year proved challenging for fixed income
investors. First, as a result of the growing U.S. budget surplus, the
Treasury announced its plans both to reduce the amount of debt it will issue
and to repurchase high-yielding, long-term term debt. With the Treasury
focusing its attention on bonds with 10-30 year maturities, investors moved
to buy long-term bonds ahead of a potential shortage, driving yields down.
Then in February, March and May, the Federal Reserve voted to raise
short-term interest rates as a result of mounting concern that above-trend
growth in the U.S. economy might spark inflation and undermine long-term
economic stability.
The Federal Reserve's tightening of monetary policy, combined with Treasury
buy-backs of long maturity bonds, caused a sharp inversion of the yield
curve. As yields on two-year Treasurys moved significantly higher, yields on
30-year Treasury bonds decreased during the first half of the year. This
inversion led to wider spreads between Treasury securities and mortgage and
agency securities during the period. Agency debt underperformed relative to
most investment-grade sectors as political pressures concerning the
continuation of their government-sponsored status intensified.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund returned 3.14% for Institutional Class Shares and 3.01% for Investor
Class Shares(1) for the six-month period ended June 30, 2000. In comparison,
the Lipper Intermediate U.S. Government Fund Index(2) returned 3.54% and the
Lehman Intermediate Government Index(3) returned 3.49% for the same period.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. The Fund's exposure to mortgage and agency securities hindered performance,
especially as spreads widened significantly relative to Treasury securities
during the period. The Fund is designed to maintain a dollar-weighted average
maturity of between three and ten years. As the yield curve inverted sharply
from short maturities to long, the Fund's relative performance was hurt by
its minimal exposure to longer maturity Treasury securities.
Q. HOW DID THE PORTFOLIO'S COMPOSITION CHANGE DURING THE PERIOD?
A. The Fund's composition remained fairly constant through the first half of the
year. Mortgage securities, which provided high-quality yield for the
portfolio, continued to comprise more than half the Fund's assets.
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. Recent economic data, including employment reports, suggest that the Federal
Reserve's recent rate hikes are finally having an impact on the economy.
While we expect the Federal Reserve may raise short-term rates by 25 basis
points later this summer, especially if consumer demand does not slow, we
believe that it is likely that the
12
<PAGE>
Fed is close to finished raising rates for this cycle. As a result, we
anticipate some reversal of both the spread widening of mortgage and agency
securities to Treasury securities and the sharp inversion of the yield curve.
The Fund is well positioned to provide attractive returns should this
interest rate and spread environment unfold in the second half. We continue
to believe that the best opportunities in bond markets typically present
themselves toward the end of Fed tightening cycles, and as such we will look
for attractive opportunities in the months ahead.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
<CAPTION>
TRAILING TRAILING SINCE
CURRENT TRAILING YEAR TRAILING 3 YEARS 5 YEARS INCEPTION
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE 12 MONTHS ANNUALIZED ANNUALIZED ANNUALIZED
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON INTERMEDIATE
GOVERNMENT FUND (INSTITUTIONAL
SHARES) 2.12% 1.62% 3.14% 3.47% 5.04%(4) 5.12%(4) 4.88%(4)
LIPPER INTERMEDIATE US
GOVERNMENT INDEX 1.92% 1.44% 3.54% 3.91% 5.27% 5.14% 5.38%
LEHMAN INTERMEDIATE GOVERNMENT
INDEX 1.59% 1.82% 3.49% 4.49% 5.75% 5.82% 5.79%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
(2) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
(3) Lehman Brothers indexes represent broad market averages for fixed-income
securities.
(4) Total return figures are shown at net asset value for all periods. These
figures do not consider the effect of the sales load in effect from
July 11, 1994-July 12, 1996. Had the sales load been factored in to the
above figures, average annual total return for 3 years, 5 years and since
inception would have been lower. The quoted performance for the
Institutional Shares prior to their inception on 4/1/97 is based on the
performance of the Fund's Investor Shares, adjusted to reflect fees and
expenses. The inception date for the Investor Shares of the Fund was
August 10, 1992. The adviser has agreed to assume a portion of the
expenses for this Fund. Had expenses not been assumed, total return and
the average annual return would have been lower. This voluntary waiver
and assumption of expenses may be modified or terminated at any time,
which would reduce the Fund's performance.
13
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
AN INTERVIEW WITH TERENCE MCCORMICK AND PAUL PERTUSI, VICE PRESIDENTS AND CO-
PORTFOLIO MANAGERS
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR THE INTERMEDIATE
INVESTMENT GRADE FUND DURING THE FIRST SIX MONTHS OF 2000?
A. The first six months of the year proved challenging for fixed income
investors. The Federal Reserve raised its target for the federal funds rate
from 5.5% to 6.5% during the first half of 2000, based on concern that above-
trend growth in the U.S. economy could eventually pose a threat to long-term
economic stability. Tighter monetary policy, coupled with a shrinking supply
of long-term U.S. Treasury debt, caused the Treasury yield curve to invert.
At the end of the first quarter, the 30-year bond yielded 65 basis points
less than the two-year note. As a result, the Treasury market outpaced all
other domestic fixed income sectors during the first half of the year.
Heavy corporate issuance continued to be a factor in the pricing of corporate
credit. Coupled with extreme uncertainty regarding future Federal Reserve
action, this put pressure on spreads, especially in the first quarter, and
resulted in a widening of 10-year swap spreads by 44 basis points. Meaningful
spread improvement occurred during the second quarter as economic reports
began to point to a cooling economy and the likelihood grew that the Federal
Reserve might be nearing the end of its tightening cycle.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund provided a total return of 2.60% for Institutional Class Shares and
2.47% for Investor Class Shares(1) for the six-month period ended June 30,
2000. In comparison, the Lipper Intermediate Investment Grade Index(2)
returned 3.30% and the Lehman Brothers Intermediate Government/Corporate Bond
Index(3) returned 3.21% for the same period.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. The corporate market experienced three dramatic sell-offs during the first
half. During these periods, we made opportunistic purchases in a number of
corporate issues to take advantage of what we believed was a peaking in
corporate spreads. Corporate bonds offered attractive relative value during
the second quarter as uncertainty regarding future Federal Reserve actions
weighed on the market. We purchased longer maturity Treasury securities and
corporate issues as we perceived a flattening trend in both yield curves.
Although longer maturity bonds may not appear attractive on a pure current
yield basis, we believe they should offer investors positive total returns in
the next 6-12 months.
Q. WHICH OF THE FUND'S HOLDINGS WERE THE BEST PERFORMERS?
A. The Fund's Treasury, mortgage and asset backed positions all provided
positive relative performance during the first half of the year. The Treasury
market benefited from the Federal Reserve's tight monetary policy and
Treasury buybacks, while mortgages and asset backed securities benefited from
a stable rate environment.
14
<PAGE>
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. The Federal Reserve has tightened monetary policy by 175 basis points since
June 30, 1999. It is our belief that the Fed is close to completing this
tightening cycle, and evidence of a cooler economy should continue to emerge
in the second half. The Treasury market should experience less volatility and
will likely move sideways for the rest of the year. With the two-year
Treasury Note closing the second quarter at 6.35%, we do not see much room
for lower yields until the Federal Reserve moves into an easing cycle. We
anticipate that spread sectors should offer higher relative returns as their
substantial yield advantage over Treasurys will drive total return. Ten-year
swap spreads began the year 79 basis points wider than comparable Treasurys
and closed out the first half at 123 basis points. We believe this widening
in yield spreads adequately compensates investors for the risks currently
associated with the corporate market.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
<CAPTION>
TRAILING TRAILING SINCE
CURRENT TRAILING YEAR TRAILING 3 YEARS 5 YEARS INCEPTION
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE 12 MONTHS ANNUALIZED ANNUALIZED ANNUALIZED
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON INTERMEDIATE
INVESTMENT GRADE FUND
(INSTITUTIONAL SHARES) 2.18% 1.55% 2.60% 3.00% 5.15%(4) 5.17%(4) 6.63%(4)
LIPPER INTERMEDIATE INVESTMENT
GRADE INDEX5 2.12% 1.30% 3.30% 3.76% 5.25% 5.68% 7.18%
LEHMAN INTERMEDIATE
GOVERNMENT/CORPORATE INDEX 1.76% 1.69% 3.21% 4.21% 5.62% 5.81% 7.27%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
(2) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
(3) Lehman Brothers indexes represent broad market averages for fixed-income
securities.
(4) The quoted performance includes performance of common and collective
trust fund ("Commingled") accounts advised by The Bank of New York dating
back to 6/30/88 and prior to the Fund's commencement of operations on
4/1/97, as adjusted to reflect the expenses associated with mutual funds.
The Commingled accounts were not registered with the Securities and
Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If the Commingled
accounts had been registered, the Commingled accounts' performance may
have been adversely affected.
(5) Lipper Analytical Services began tracking this index on December 30,
1988.
15
<PAGE>
BNY HAMILTON U.S. BOND MARKET INDEX FUND
AN INTERVIEW WITH WILLIAM BAIRD, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR BONDS DURING THE FIRST
SIX MONTHS OF 2000?
A. With the exception of the shortest maturities, interest rates generally
declined across the entire Treasury yield curve during the first half of
2000. On May 16, the Federal Reserve raised the target federal funds rate by
50 basis points to 6.5%, bringing the total increase to one percent for the
year. The Fed's action was based on concern that above-trend growth in the
U.S. economy threatened to create inflationary imbalances that could
undermine long-term economic stability. The Fed's tightening of monetary
policy, combined with the Treasury buy-backs of long maturity bonds, caused a
sharp inversion of the yield curve. As a result, yield spreads on corporate,
mortgage and agency securities widened significantly relative to Treasury
securities. Agency debt underperformed most investment-grade sectors as
political pressures, which created doubt concerning the continuation of their
government-sponsored status, intensified.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM DURING THE PERIOD?
A. The U.S. Bond Market Index Fund is passively managed to track the risk and
return characteristics of its benchmark, the Lehman Brothers Aggregate Bond
Index. The Fund, which was launched on April 28, 2000, returned 1.68% for
Institutional Class Shares(1) for the two-month period ended June 30, 2000.
The Lehman Brothers Aggregate Bond Index(2) returned 2.03% for the same
period.
Q. WHAT IS YOUR OUTLOOK GOING FORWARD?
A. We expect some reversal of both the spread widening of corporate, mortgage
and agency securities to Treasurys and the sharp inversion of the yield curve
that characterized the fixed income markets of the first half. While the Fed
may raise the federal funds rate by one more 25 basis point increment, we
believe that it is likely that they are finished raising rates for this
cycle. As a result, we believe the Fund will generate very competitive
returns versus holding money market securities should this interest rate and
spread environment unfold in the second half of the year. We will continue to
follow a passive strategy designed to provide returns that closely track the
Fund's benchmark, the Lehman Brothers Aggregate Bond Index.
16
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
<CAPTION>
TRAILING TRAILING AGGREGATE
CURRENT TRAILING YEAR TRAILING 3 YEARS 5 YEARS TOTAL
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE 12 MONTHS ANNUALIZED ANNUALIZED RETURN
BNY HAMILTON U.S. BOND MARKET
<S> <C> <C> <C> <C> <C> <C> <C>
INDEX FUND 2.06% N/A N/A N/A N/A N/A 1.68%
LIPPER BOND INDEX FUND INDEX3 -- -- -- -- -- -- --
LEHMAN BROS. AGGREGATE BOND
INDEX 2.08% 1.73% 3.98% 4.56% 6.03% 6.25% 2.03%
</TABLE>
Note: Returns for BNY Hamilton Funds after fees.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE, SO THAT AN INVESTOR'S SHARE, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The Advisor and sub-administrator have agreed to limit
the expenses of the Fund to 0.35% of its average daily net assets. The
Advisor and sub-administrator have agreed to waive a portion of their
fees, and, if necessary, reimburse expenses of the Fund to the extent
that total annual operating expenses are greater than 0.35% of its
average daily net assets. Management reserves the right to implement and
discontinue expense limitations at any time. Inception date for this Fund
was April 28, 2000.
(2) Lehman Brothers indexes represent broad market averages for fixed-income
securities.
(3) Lipper does not provide this index.
17
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
AN INTERVIEW WITH JEFFREY NOSS, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR MUNICIPAL BONDS DURING
THE FIRST SIX MONTHS OF 2000?
A. Stronger-than-expected economic growth and the resulting threat of inflation
were at the top of investors' minds through much of the first six months of
the year. These concerns drove interest rates higher and bond prices lower
and prompted the Federal Reserve to raise short-term interest rates three
times during the period. This contributed to a downturn in price performance
for the municipal bond market during the first five months of the year. In
June, with signs of an economic slowdown and increased demand for municipals,
the tax-exempt market strengthened significantly.
The yield on high-quality intermediate term municipal bonds rose 40 basis
points to 5.20% in May, up from 4.80% at the beginning of the year. They
returned to the 4.80% level by June. The yield on the 10-year U.S. Treasury
Note fell from 6.61% on December 31, 1999 to 6.18% on June 30, 2000, a
decrease of 43 basis points.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. Competitively. For the six-month period ended June 30, 2000, the Fund posted
a total return of 3.04% for Institutional Class Shares and 2.81% for Investor
Class Shares(1). In comparison, the Lehman Brothers Five-Year General
Obligation Municipal Bond Index(2) returned 2.79% and the Lipper Intermediate
Municipal Bond Fund Index(3) returned 2.99% for the same period.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. We believe that the longer-term trend for interest rates is down. As a
result, the Fund remained positioned for that scenario during the first half
of the year. This helped the Fund's performance relative to the indexes. As a
high credit-quality oriented Fund, we hold a smaller proportion of
lower-rated bonds than our peer group. This profile hurt our relative
performance when lower-rated bonds, reflecting the strong economic backdrop,
experienced relatively better price performance during the period.
Q. HOW DID THE PORTFOLIO'S COMPOSITION CHANGE DURING THE PERIOD?
A. The Fund increased its holdings of Baa-1 paper in order to take advantage of
improving credit trends in that segment of the market. These trends resulted
in stronger price performance for that group of credits during the first half
of the year. In light of our longer-term outlook for lower interest rates, we
also took advantage of weaker market conditions by tax swapping. This helped
to improve our coupon and call protection structure. The duration of the
portfolio remained essentially unchanged during the period.
Q. WHAT IS YOUR STRATEGIC OUTLOOK FOR 2000?
A. While a greater new issue supply, higher-than-expected inflation and a
lowering of credit quality are potential risks for the fixed income markets,
we believe these scenarios are unlikely. Instead, we anticipate a moderate
supply of intermediate-term municipal securities and a more favorable
interest rate environment. As a result, we
18
<PAGE>
remain positive in our outlook for the municipal bond market for the rest of
the year and have positioned the Fund to reflect this view.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
<CAPTION>
TRAILING TRAILING SINCE
CURRENT TRAILING YEAR TRAILING 3 YEARS 5 YEARS INCEPTION
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE 12 MONTHS ANNUALIZED ANNUALIZED ANNUALIZED
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON INTERMEDIATE
TAX-EXEMPT FUND (INSTITUTIONAL
SHARES) 2.46% 1.35% 3.04% 3.14% 3.48%(4) 4.09%(4) 5.26%(4)
LIPPER INTERMEDIATE MUNICIPAL
FUND INDEX 2.06% 1.21% 2.99% 2.74% 3.94% 4.73% 5.95%
LEHMAN 5 YEAR G.O. MUNI BOND
INDEX 1.85% 1.61% 2.79% 3.67% 4.47% 5.01% 6.17%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
(2) Lehman Brothers indexes represent broad market averages for fixed-income
securities.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
(4) The quoted performance includes performance of common and collective
trust fund ("Commingled") accounts advised by The Bank of New York dating
back to 6/30/88 and prior to the Fund's commencement of operations on
4/1/97, as adjusted to reflect the expenses associated with mutual funds.
The Commingled accounts were not registered with the Securities and
Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If the Commingled
accounts had been registered, the Commingled accounts' performance may
have been adversely affected.
19
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX EXEMPT FUND
AN INTERVIEW WITH COLLEEN M. FREY, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR MUNICIPAL BONDS DURING
THE FIRST SIX MONTHS OF 2000?
A. The yield curve flattened during the first half of the year as the Federal
Reserve continued the tightening process it began a year ago. Municipal
yields were close to their 12-month highs in mid-May as the market waited to
see if the Federal Reserve would move rates higher as expected. Rates moved
lower in June following the Fed's 50 basis point increase and economic
reports that indicated signs of a slowdown. Year to date, the spread between
one- and five-year high grade municipals declined to 28 basis points from 67
basis points; the one-to-ten year spread declined to 53 basis points from 104
basis points.
The supply of new municipal debt fell under the pressure of higher rates. For
the first six months of the year, total new bond issuance was 22% below
1999's level. Refunding activity saw the greatest decline, down 69% during
the first half.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund's return was 2.90% for Institutional Class Shares and 2.77% for
Investor Class Shares(1) for the six-month period ended June 30, 2000. In
comparison, the returns for the Lehman Five-Year General Obligation Index(2)
and the Lipper New York Intermediate Municipal Debt Average(3) were 2.79% and
3.38%, respectively, for the same period.
Q. WHAT STRATEGIES ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. Unlike the taxable fixed income markets, spreads between the various sectors
of the municipal market have been very narrow, providing few meaningful swap
opportunities. Yield differences between general obligation and revenue bonds
or non-AMT and AMT issues have been negligible. Quality spreads also continue
to be narrow. Here we maintained a high percentage-67%-of the Fund in
triple-A and double-A rated issues.
We held the Fund's average maturity steady at 6.5 years, unchanged from the
beginning of the period. The Fund's average maturity and duration, which were
longer than Lehman's Five-Year General Obligation Index, helped us to produce
a better relative return, particularly in the environment of rising
short-term rates and declining rates on the longer end. Conversely, the
Fund's performance relative to its peer group was hampered slightly by its
shorter average maturity and duration vis-a-vis the universe of funds
included in the Lipper New York Intermediate Municipal Debt Average.
More than 70% of the Fund's return was attributable to the income generated
by the bonds held in the portfolio. We realized some principal appreciation
as evidenced by the $.08 increase in the Fund's NAV to $10.18 from $10.10 at
year-end.
Q. WHAT IS YOUR STRATEGIC OUTLOOK FOR 2000?
A. We expect to see a slowdown in the economy that should bring comfort to the
fixed income markets. In addition to the fundamental economic factors
affecting the fixed income markets, the municipal bond market
20
<PAGE>
will also be influenced by technical factors relating to supply and demand.
While refunding issuance was down 69% in the first six months of this year,
new money issuance, which is the primary driver of supply in the market, was
down by only 2.5%. Manageable supply and strong demand for bonds by
individual investors will continue to lend support to this market.
<TABLE>
TRAILING TRAILING TRAILING SINCE
CURRENT TRAILING YEAR 12 3 YEARS 5 YEARS INCEPTION
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE MONTHS ANNUALIZED ANNUALIZED ANNUALIZED
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON INTERMEDIATE NEW
YORK TAX-EXEMPT FUND
(INSTITUTIONAL SHARES) 2.14% 1.34% 2.90% 2.99% 3.62%(4) 4.12%(4) 4.23%(4)
LIPPER NEW YORK INTERMEDIATE
MUNICIPAL DEBT FUND AVERAGE 2.28% 1.34% 3.38% 3.09% 3.95% 4.64% 4.79%
LEHMAN 5 YEAR G.O. MUNI BOND
INDEX 1.85% 1.61% 2.79% 3.67% 4.47% 5.01% 5.24%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
(2) Lehman Brothers indexes represent broad market averages for fixed-income
securities.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
(4) Total return figures are shown at net asset value for all periods. These
figures do not consider the effect of the sales load in effect from
July 11, 1994-July 12, 1996. Had the sales load been factored in to the
above figures, average annual total return for 3 years, 5 years and since
inception would have been lower. The quoted performance for the
Institutional Shares prior to their inception on 4/1/97 is based on the
performance of the Fund's Investor Shares, adjusted to reflect fees and
expenses. The inception date for the Investor Shares of the Fund was
August 10, 1992. The adviser has agreed to assume a portion of the
expenses for this Fund. Had expenses not been assumed, total return and
the average annual return would have been lower. This volunary waiver and
assumption of expenses may be modified or terminated at any time, which
would reduce the Fund's performance.
21
<PAGE>
BNY HAMILTON MONEY FUND
AN INTERVIEW WITH RICHARD KLINGMAN, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE MONEY MARKETS IN THE FIRST HALF OF 2000?
A. The economy entered 2000 in the midst of a steady campaign by the Federal
Reserve to dampen the risk of inflation posed by a very strong economy. The
Federal Reserve has gradually increased the federal funds rate from 4.75% in
June of 1999 to 6.50% in June of 2000. Recent economic data suggests that the
Federal Reserve's vigilant stance is having an impact on the economy. As a
result, we believe the last tightening of the federal funds rate in June, a
50 basis point move, may signal that the Fed is close to finished raising
rates for this cycle.
Q. GIVEN THIS CONTEXT, HOW DID THE BNY HAMILTON MONEY FUND PERFORM?
A. For the six-month period ended June 30, 2000, Hamilton Shares of the Fund
posted a total return of 2.95%, Premier Shares returned 2.82%, and Classic
Shares returned 2.69%. For the 12-month period ended June 30, 2000, Hamilton
Shares returned 5.63%, Premier Shares returned 5.37%, and Classic Shares
returned 5.11%1.
The seven-day current and the 30-day effective yields for the six-month
period ending June 30, 2000 were 6.29% and 6.27%, respectively for the
Hamilton Shares; 6.04% and 6.02% for the Premier Shares; and 5.79% and 5.77%
for the Classic Shares(2). During the first half of this year, the Fund's
assets grew significantly, increasing over $1.2 billion, or 34%, to more that
$4.6 billion.
Q. WHAT ACCOUNTED FOR THE FUND'S PERFORMANCE?
A. The Fund seeks to achieve a competitive yield with a bias toward safety and
liquidity. For this reason, we invest in a variety of instrument types in
various sectors over the short-term yield curve, while at the same time
providing a significant overnight base of liquidity and a steady stream of
maturities. We are extremely focused on the quality of our investments and
the Fund has earned both an AAAm rating from Standard & Poor's Corporation
and an Aaa rating from Moody's Investor Services. These ratings signify that
the Fund's safety is excellent and that it has superior capacity to maintain
its $1.00 net asset value per share, although there is no guarantee that it
will do so.
Q. HOW WAS THE FUND WEIGHTED?
A. The Fund remained broadly diversified with exposure to various fixed- and
variable-rate money market securities, including top-rated commercial paper
(46%), bank issues (21%), repurchase agreements (16%), corporate debt (6%),
and U.S. government and agency securities (11%). The weighted average
maturity (WAM) of the Fund was 47 days as of June 30, 2000.
22
<PAGE>
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. As a result of the Federal Reserve's monetary actions over the past six
months and indications suggesting that the economy is within target growth
ranges, we anticipate that the Fed is close to adopting a "neutral" policy
position. Therefore, we do not see significant rate changes for the second
half of 2000 and believe the economy will continue to display relatively low
inflation and acceptable economic growth. The BNY Hamilton Money Fund will
continue to identify investments of significant relative value in order to
maintain a competitive yield and a well-positioned portfolio.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
(2) YIELDS WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS. AN INVESTMENT IN
THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE FDIC OR ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND STRIVES TO MAINTAIN THE VALUE OF
YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY
INVESTING IN THE FUND.
23
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
AN INTERVIEW WITH RICHARD KLINGMAN, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED TREASURY SECURITIES IN THE FIRST HALF OF 2000?
A. As a result of a strong economy and increased federal tax receipts, the U.S.
Treasury announced its plan to both reduce the amount of debt it will issue
and to repurchase high-yielding long-term debt, thereby lowering the
Treasury's funding requirements. This fundamental change in the supply of
U.S. Treasury securities put significant downward pressure on yields. On the
front-end of the yield curve, where the BNY Hamilton Treasury Money Fund
invests, there was a reduction in the amount of one-year Treasury Bills and a
shift from monthly to quarterly issuance. This reduction in supply, combined
with a series of hikes in the federal funds rate, created a sharp inversion
of the yield curve. The overnight funds rate moved significantly higher in
yield than the one-year Treasury Bill. On June 30, 2000 the federal funds
target rate stood at 6.50%, while the one-year Treasury Bill yield was 6.06%.
Q. GIVEN THIS CONTEXT, HOW DID THE BNY HAMILTON TREASURY MONEY FUND PERFORM?
A. For the six-month period ended June 30, 2000, Hamilton Shares of the Fund
posted a total return of 2.82%, Premier Shares returned 2.69%, and Classic
Shares returned 2.57%. For the 12-month period ended June 30, 2000, Hamilton
Shares of the Fund posted a total return of 5.36%, Premier Shares returned
5.10%, and Classic Shares returned 4.84%(1).
The seven-day current and the 30-day effective yields for the period ending
June 30, 2000 were 6.23% and 6.22%, respectively for the Hamilton Shares;
5.98% and 5.97% for the Premier Shares; and 5.73% and 5.72% for the Classic
Shares(2). During this period the Fund's assets grew significantly,
increasing over $62 million, or 7%, to more than $935 million.
Q. WHAT ARE YOUR GOALS IN MANAGING THE FUND?
A. The BNY Hamilton Treasury Money Fund is designed to provide high current
income while preserving investors' capital and maintaining a very high level
of liquidity. As a result, the Fund invests solely in securities issued by
the U.S. Treasury or collateralized by U. S. Treasury obligations.
Our emphasis on quality has earned the Fund an AAAm rating from Standard &
Poor's Corporation and an Aaa rating from Moody's Investor Services. These
ratings signify that the Fund's safety is excellent and that it has superior
capacity to maintain its $1.00 net asset value per share, although there is
no guarantee that it will do so.
Q. HOW WAS THE FUND WEIGHTED?
A. The Fund remained heavily weighted toward liquidity with overnight Treasury
backed repurchase agreements representing 86% of the Fund and Treasury Notes
and Bills the remaining 14%. The weighted average maturity (WAM) of the BNY
Hamilton Treasury Money Fund was 27 days as of June 30, 2000.
24
<PAGE>
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. As a result of the Federal Reserve's monetary actions over the past year and
indications suggesting that the economy is within target growth ranges, we
anticipate that the Federal Reserve is close to adopting a "neutral" policy
position. Therefore, we do not see significant rate changes for the second
half of 2000 and believe the economy will continue to display relatively low
inflation and acceptable economic growth. Therefore, we will continue to
monitor the direction of Federal Reserve policy and to position the Fund as
appropriate in the effort to provide both liquidity and maximum yield.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
(2) YIELDS WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS. AN INVESTMENT IN
THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE FDIC OR WITH ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND STRIVES TO MAINTAIN THE VALUE OF
YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY
INVESTING IN THE FUND.
25
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS--97.3%
BANKING AND FINANCE--0.8%
128,932 Wells Fargo & Co................................. $ 4,996,115
------------
BEVERAGES, FOOD AND TOBACCO--4.3%
313,018 Bestfoods........................................ 21,676,496
114,467 Coca-Cola Co..................................... 6,574,698
------------
28,251,194
------------
BIOSCIENCES--3.8%
140,504 Amgen, Inc.*..................................... 9,870,406
70,000 Biogen, Inc.*.................................... 4,515,000
60,000 Genentech, Inc.*................................. 10,320,000
------------
24,705,406
------------
CHEMICALS--1.1%
160,146 duPont (E.I.) de Nemours & Co.................... 7,006,387
------------
COMMUNICATIONS EQUIPMENT AND SYSTEMS--4.1%
540,000 Nokia Corp. ADR.................................. 26,966,250
------------
COMMUNICATIONS, MEDIA AND ENTERTAINMENT--1.9%
163,158 Time Warner, Inc................................. 12,400,008
------------
COMPUTER SERVICES--0.3%
42,600 America Online, Inc.*............................ 2,247,150
------------
COMPUTERS--MICRO--4.5%
91,660 Hewlett-Packard Co............................... 11,446,042
200,000 Sun Microsystems, Inc.*.......................... 18,187,500
------------
29,633,542
------------
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
COMPUTERS--SOFTWARE AND PERIPHERALS--11.7%
509,120 Cisco Systems, Inc.*............................. $ 32,360,940
380,000 EMC Corp.*....................................... 29,236,250
197,296 Microsoft Corp.*................................. 15,783,680
------------
77,380,870
------------
CONGLOMERATES--2.7%
339,438 General Electric Co.............................. 17,990,214
------------
CONTAINERS AND PACKAGING--2.0%
250,000 Sealed Air Corp.*................................ 13,093,750
------------
ELECTRONIC EQUIPMENT AND COMPONENTS--6.9%
34,959 Agilent Technologies, Inc.*...................... 2,578,226
200,000 Applied Materials, Inc.*......................... 18,125,000
185,552 Intel Corp....................................... 24,805,983
------------
45,509,209
------------
FINANCIAL SERVICES--8.1%
300,000 Charles Schwab Corp. (The)....................... 10,087,500
297,706 Citigroup, Inc................................... 17,936,787
171,725 Fannie Mae....................................... 8,961,898
194,200 Morgan Stanley Dean Witter & Co.................. 16,167,150
------------
53,153,335
------------
HEALTH CARE PRODUCTS AND
SERVICES--5.2%
185,795 Johnson & Johnson................................ 18,927,866
302,000 Medtronic, Inc................................... 15,043,375
------------
33,971,241
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
HOUSEHOLD AND PERSONAL CARE PRODUCTS--2.2%
130,016 Gillette Co...................................... $ 4,542,434
171,938 Procter & Gamble Co.............................. 9,843,451
------------
14,385,885
------------
INSURANCE--3.0%
170,646 American International Group, Inc................ 20,050,905
------------
OIL & GAS--6.5%
362,225 Exxon Mobil Corp................................. 28,434,663
62,992 Royal Dutch Petroleum Co......................... 3,877,945
144,390 Schlumberger Ltd................................. 10,775,104
------------
43,087,712
------------
PHARMACEUTICALS--5.5%
122,000 Bristol-Myers Squibb Co.......................... 7,106,500
146,538 Merck & Co., Inc................................. 11,228,474
372,348 Pfizer, Inc...................................... 17,872,704
------------
36,207,678
------------
REAL ESTATE INVESTMENT TRUSTS--1.1%
174,000 Duke-Weeks Realty Corp........................... 3,893,250
140,000 Liberty Property Trust........................... 3,631,250
------------
7,524,500
------------
RESORTS & ENTERTAINMENT--2.1%
360,000 Walt Disney Co. (The)............................ 13,972,500
------------
RETAIL--SPECIALTY STORES--1.4%
226,890 CVS Corp......................................... 9,075,600
------------
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS--14.6%
123,000 Corning, Inc..................................... $ 33,194,625
245,497 Global Crossing Ltd.*............................ 6,459,640
110,000 Lucent Technologies, Inc......................... 6,517,500
200,000 NEXTLINK Communications,
Inc., Class A*................................... 7,587,500
170,000 Nortel Networks Corp............................. 11,602,500
200,000 Qwest Communications International, Inc.*........ 9,937,500
120,000 Tellabs, Inc.*................................... 8,212,500
284,000 WorldCom, Inc.*.................................. 13,028,500
------------
96,540,265
------------
UTILITIES--GAS & ELECTRIC--3.5%
319,952 Enron Corp....................................... 20,636,904
93,253 TXU Corp......................................... 2,750,964
------------
23,387,868
------------
TOTAL COMMON STOCKS
(Cost $248,114,983).............................. 641,537,584
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
MONEY MARKET FUND--2.6%
$17,261,462 ACM Institutional Reserves (Prime Portfolio),
6.52% (Cost $17,261,462)(a)...................... 17,261,462
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
UNITED STATES TREASURY
BILLS--0.1%
$ 950,000 8/24/00, 5.775% (Amortized Cost $942,198)........ $ 942,426
------------
TOTAL INVESTMENTS BEFORE OUTSTANDING WRITTEN CALL
AND PUT OPTIONS
(Cost $266,318,643)--100.0%...................... 659,741,472
------------
</TABLE>
<TABLE>
<CAPTION>
STRIKE
CONTRACTS PRICE
----------- ------
<C> <S> <C> <C>
OUTSTANDING WRITTEN CALL OPTIONS--0.0%
(100) Corning, Inc., expiration August,
2000.................................... $300 (130,000)
(100) Corning, Inc., expiration July, 2000.... 280 (72,500)
(100) Sun Microsystems, Inc., expiration
August, 2000............................ 100 (30,000)
------------
TOTAL OUTSTANDING WRITTEN CALL OPTIONS
(Premiums received $230,342)....................
(232,500)
------------
</TABLE>
<TABLE>
<CAPTION>
STRIKE
CONTRACTS PRICE VALUE
----------- ------ ------------
<C> <S> <C> <C>
OUTSTANDING WRITTEN PUT OPTIONS--0.0%
(100) Sun Microsystems, Inc., expiration
August, 2000 (Premiums received
$31,574)................................ $ 80 $ (25,625)
------------
TOTAL INVESTMENTS NET OF OUTSTANDING WRITTEN
CALL AND PUT OPTIONS
(Cost $266,056,727)(b)--100.0%..................
659,483,347
Other assets less
liabilities--(0.0%)............................. 238,087
------------
NET ASSETS--100.0%.............................. $659,721,434
============
</TABLE>
ADR AMERICAN DEPOSITARY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED APPRECIATION WAS $393,426,620
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $398,210,542 AND AGGREGATE GROSS UNREAL-
IZED DEPRECIATION OF $4,783,922.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Cost $266,318,643)......................................................... $ 659,741,472
Cash.......................................................................... 4
Receivables:
Investments sold............................................................ 3,867,686
Dividends................................................................... 344,323
Capital stock sold.......................................................... 266,137
Interest.................................................................... 77,081
Deferred organization costs and other assets.................................. 32,950
--------------
TOTAL ASSETS................................................................ 664,329,653
--------------
LIABILITIES:
Outstanding call & put options written (premium received $261,916)............ 258,125
Payables:
Capital stock repurchased................................................... 2,922,620
Investments purchased....................................................... 942,054
Services provided by the Bank of New York and Administrator................. 450,759
Accrued expenses and other liabilities........................................ 34,661
--------------
TOTAL LIABILITIES........................................................... 4,608,219
--------------
NET ASSETS:..................................................................... $ 659,721,434
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 36,456
Capital surplus............................................................... 241,223,498
Undistributed net investment income........................................... 10,928
Accumulated net realized gain on investments.................................. 25,023,932
Net unrealized appreciation on investments.................................... 393,426,620
--------------
NET ASSETS...................................................................... $ 659,721,434
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 636,528,664
==============
Shares outstanding............................................................ 35,166,006
==============
Net asset value, offering price and repurchase price per share................ $ 18.10
==============
INVESTOR SHARES:
Net assets.................................................................... $ 23,192,770
==============
Shares outstanding............................................................ 1,289,863
==============
Net asset value, offering price and repurchase price per share................ $ 17.98
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $7,807)........................ $ 2,337,359
Interest...................................................................... 750,367
--------------
TOTAL INCOME................................................................ 3,087,726
--------------
EXPENSES:
Advisory...................................................................... 1,879,813
Administration................................................................ 626,604
12b-1 fee--Investor Shares.................................................... 28,779
Transfer agent................................................................ 51,021
Custodian..................................................................... 31,418
Accounting services........................................................... 29,879
Reports to shareholders....................................................... 12,171
Registration and filings...................................................... 10,842
Organization.................................................................. 8,905
Legal......................................................................... 7,968
Audit......................................................................... 6,941
Insurance..................................................................... 6,699
Cash management............................................................... 2,707
Directors..................................................................... 2,697
Other......................................................................... 11,341
--------------
NET EXPENSES................................................................ 2,717,785
--------------
NET INVESTMENT INCOME....................................................... 369,941
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on:
Investments................................................................. 15,753,987
Written call options........................................................ 459,658
--------------
Net realized gain on investments.............................................. 16,213,645
--------------
Increase in unrealized appreciation on:
Investments................................................................. 53,099,822
Written call options........................................................ 2,791,233
--------------
Net unrealized gain on investments during the period.......................... 55,891,055
--------------
Net realized and unrealized gain on investments............................... 72,104,700
--------------
Net increase in net assets resulting from operations.......................... $ 72,474,641
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 369,941 $ 1,802,377
Net realized gain on investments.............................................. 16,213,645 43,425,100
Increase in unrealized appreciation on investments during the period.......... 55,891,055 120,708,807
------------ -------------
Net increase in net assets resulting from operations........................ 72,474,641 165,936,284
------------ -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (506,899) (1,707,585)
Investor Shares........................... (9,029) (32,566)
Distributions from capital gains:
Institutional Shares............................. -- (39,203,875)
Investor Shares.................................. -- (1,225,900)
------------ -------------
(515,928) (42,169,926)
------------ -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 39,239,899 86,672,618
Investor Shares.................................. 13,126,735 28,949,535
Proceeds from shares issued on reinvestment of
dividends and distributions: Institutional Shares........................... 107,575 38,770,428
Investor Shares.................................... 8,967 1,258,079
Cost of capital stock repurchased:
Institutional Shares............................ (61,426,611) (100,403,230)
Investor Shares................................. (11,219,980) (26,131,558)
------------ -------------
Net increase (decrease) in net assets resulting from capital stock
transactions................................................................ (20,163,415) 29,115,872
------------ -------------
INCREASE IN NET ASSETS...................................................... 51,795,298 152,882,230
NET ASSETS:
Beginning of year............................................................. 607,926,136 455,043,906
------------ -------------
End of period (includes undistributed net investment income of $10,928 at
June 30, 2000 and $156,915 at December 31, 1999)............................ $659,721,434 $ 607,926,136
============ =============
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 2,300,815 6,049,520
Investor Shares.................................................... 800,862 2,117,449
Shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... 6,397 2,525,302
Investor Shares............................................. 533 82,520
Shares repurchased:
Institutional Shares......................................... (3,622,074) (7,040,036)
Investor Shares.............................................. (673,010) (1,911,599)
------------ -------------
Net increase (decrease)..................................................... (1,186,477) 1,823,156
Shares outstanding, beginning of year......................................... 37,642,346 35,819,190
------------ -------------
Shares outstanding, end of period............................................. 36,455,869 37,642,346
============ =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
------------------------------------------------------------
FOR THE
PERIOD
APRIL 1, 1997*
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, 2000 ------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997
---------------- ----------- ------------ ---------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 16.15 $ 12.71 $ 10.94 $ 10.00
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.01 0.05 0.11 0.08
Net realized and unrealized gain on
investments........................... 1.95 4.59 2.46 2.83
-------- -------- -------- --------
Total from investment operations...... 1.96 4.64 2.57 2.91
-------- -------- -------- --------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment
income................................ (0.01) (0.05) (0.11) (0.08)
Distributions from capital gains........ -- (1.15) (0.69) (1.89)
-------- -------- -------- --------
Total dividends and distributions..... (0.01) (1.20) (0.80) (1.97)
-------- -------- -------- --------
Net asset value at end of period........ $ 18.10 $ 16.15 $ 12.71 $ 10.94
======== ======== ======== ========
TOTAL RETURN:........................... 12.17%** 37.13% 23.49% 29.11%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $636,529 $589,285 $443,997 $373,326
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.86%*** 0.85% 0.82% 0.82%***
Expenses, prior to waiver from The
Bank of New York.................... 0.86%*** 0.86% 0.91% 0.88%***
Net investment income, net of waiver
from The Bank of New York........... 0.13%*** 0.36% 0.73% 0.89%***
Portfolio turnover rate................. 5% 18% 26% 37%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
----------------------------------------------------------
FOR THE
PERIOD
MAY 1, 1997*
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, 2000 ------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997
---------------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 16.05 $ 12.65 $ 10.92 $10.70
------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)............ (0.01) 0.01 0.11 0.06
Net realized and unrealized gain on
investments........................... 1.95 4.57 2.42 2.12
------- ------- ------- ------
Total from investment operations...... 1.94 4.58 2.53 2.18
------- ------- ------- ------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment
income................................ (0.01) (0.03) (0.11) (0.07)
Distributions from capital gains........ -- (1.15) (0.69) (1.89)
------- ------- ------- ------
Total dividends and distributions..... (0.01) (1.18) (0.80) (1.96)
------- ------- ------- ------
Net asset value at end of period........ $ 17.98 $ 16.05 $ 12.65 $10.92
======= ======= ======= ======
TOTAL RETURN:........................... 12.07%** 36.83% 23.26% 20.37%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $23,193 $18,642 $11,047 $6,464
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.11%*** 1.11% 1.07% 1.07%***
Expenses, prior to waiver from The
Bank of New York.................... 1.11%*** 1.14% 1.21% 1.16%***
Net investment income, net of waiver
from The Bank of New York........... (0.12)%*** 0.10% 0.50% 0.54%***
Portfolio turnover rate................. 5% 18% 26% 37%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS--95.2%
ADVERTISING AND MARKETING
SERVICES--0.6%
73,050 DoubleClick, Inc.*...................... $ 2,785,031
------------
BANK HOLDING COMPANIES--1.7%
89,700 Greater Bay Bancorp..................... 4,193,475
134,600 UCBH Holdings, Inc...................... 3,592,137
------------
7,785,612
------------
BANKING--0.6%
68,500 Wilmington Trust Corp................... 2,928,375
------------
BIOSCIENCES--1.7%
95,075 Aurora Biosciences Corp.*............... 6,482,927
7,900 Human Genome Sciences, Inc.*............ 1,053,662
------------
7,536,589
------------
BIOTECHNOLOGY--0.7%
7,800 Affymetrix, Inc.*....................... 1,287,975
7,600 Incyte Pharmaceuticals, Inc.*........... 624,625
11,700 Millennium Pharmaceuticals, Inc.*....... 1,308,937
------------
3,221,537
------------
COMMUNICATIONS, MEDIA AND ENTERTAINMENT--0.3%
23,650 Scholastic Corp.*....................... 1,445,606
------------
COMPUTER SERVICES--3.4%
47,350 Entrust Technologies, Inc.*............. 3,918,212
141,360 Network Appliance, Inc.*................ 11,379,480
------------
15,297,692
------------
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
COMPUTERS--SOFTWARE AND PERIPHERALS--21.1%
170,300 Ancor Communications, Inc.*............. $ 6,090,886
51,300 Bluestone Software, Inc.*............... 1,317,769
40,200 BroadVision, Inc.*...................... 2,042,662
94,840 Commerce One, Inc.*..................... 4,303,365
26,100 Crossroads Systems, Inc.*............... 659,025
50,810 Digex, Inc.*............................ 3,451,904
26,265 Finisar Corp.*.......................... 687,815
103,500 Informatica Corp.*...................... 8,480,531
71,150 Mercury Interactive Corp.*.............. 6,883,762
133,600 Metromedia Fiber Network, Inc.*......... 5,302,250
78,800 Micromuse, Inc.*........................ 13,040,169
103,395 Netcentives, Inc.*...................... 1,925,732
72,400 Newport Corp............................ 7,773,950
42,000 Phone.com, Inc.*........................ 2,735,250
34,000 RealNetworks, Inc.*..................... 1,719,125
86,300 Research in Motion Ltd.*................ 3,905,075
51,000 SanDisk Corp.*.......................... 3,120,562
39,600 SeaChange International, Inc.*.......... 1,143,450
126,907 USinternetworking, Inc.*................ 2,593,662
63,684 VERITAS Software Corp.*................. 7,197,287
136,340 Vitria Technology, Inc.................. 8,333,782
53,900 Xircom, Inc.*........................... 2,560,250
------------
95,268,263
------------
DATA PROCESSING SYSTEMS--0.4%
56,000 MedQuist, Inc.*......................... 1,904,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
EDUCATION--3.1%
209,800 Apollo Group, Inc., Class A*............ $ 5,874,400
155,756 DeVry, Inc.*............................ 4,117,799
230,020 ITT Educational Services, Inc.*......... 4,039,726
------------
14,031,925
------------
ELECTRICAL EQUIPMENT--1.0%
71,160 Gemstar International Group Ltd.*....... 4,373,004
------------
ELECTRONIC EQUIPMENT AND COMPONENTS--12.5%
56,400 Applied Micro Circuits Corp.*........... 5,569,500
196,100 C-COR.net Corp.*........................ 5,294,700
74,100 Electro Scientific Industries, Inc.*.... 3,262,716
48,200 EMCORE Corp.*........................... 5,784,000
125,258 Flextronics International Ltd.*......... 8,603,659
23,800 II-VI, Inc.*............................ 1,151,325
113,000 Jabil Circuit, Inc.*.................... 5,607,625
37,850 Lattice Semiconductor Corp.*............ 2,616,381
26,497 Microchip Technology, Inc.*............. 1,543,864
60,000 PLX Technology, Inc.*................... 2,490,000
30,400 QLogic Corp.*........................... 2,008,300
96,800 Sawtek, Inc.*........................... 5,572,050
87,700 TranSwitch Corp.*....................... 6,769,344
------------
56,273,464
------------
ELECTRONICS--0.5%
12,500 PMC - Sierra, Inc.*..................... 2,221,094
------------
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FINANCIAL SERVICES--0.3%
36,540 Bank United Corp., Class A.............. $ 1,285,751
------------
FOOD WHOLESALING--0.4%
60,700 Dean Foods Co........................... 1,923,431
------------
HEALTH & MEDICAL FACILITIES--0.4%
26,600 Quest Diagnostics, Inc.*................ 1,988,350
------------
HUMAN RESOURCES--1.0%
147,000 Korn/Ferry International*............... 4,658,062
------------
INVESTMENT MANAGEMENT--1.2%
40,600 Legg Mason, Inc......................... 2,030,000
96,900 Waddell & Reed Financial, Inc........... 3,179,531
------------
5,209,531
------------
MANUFACTURING--4.9%
70,000 Kulicke & Soffa Industries, Inc.*....... 4,156,250
34,600 Maverick Tube Corp.*.................... 1,007,725
218,765 Scotts Co. (The), Class A*.............. 7,984,923
71,070 Waters Corp.*........................... 8,870,424
------------
22,019,322
------------
MEDIA--3.5%
81,600 Emmis Communications Corp., Class A*.... 3,376,200
44,000 Hispanic Broadcasting Corp.*............ 1,457,500
147,210 Radio One, Inc.*........................ 4,351,896
294,420 Radio One, Inc., Class D*............... 6,495,641
------------
15,681,237
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MEDICAL CARE AND PRODUCTS--3.9%
213,450 Celgene Corp.*.......................... $ 12,566,869
86,100 Cephalon, Inc.*......................... 5,155,238
------------
17,722,107
------------
MEDICAL INSTRUMENTS--0.2%
23,100 ORATEC Interventions, Inc.*............. 770,963
------------
OIL & GAS--3.6%
19,550 BJ Services Co.*........................ 1,221,875
513,000 Grey Wolf, Inc.*........................ 2,565,000
77,100 Newfield Exploration Co.*............... 3,016,538
94,900 Patterson Energy, Inc.*................. 2,704,650
63,800 Stolt Offshore SA*...................... 901,175
31,900 Stolt Offshore SA ADR*.................. 378,813
88,600 Stone Energy Corp.*..................... 5,293,850
------------
16,081,901
------------
OIL FIELD SERVICES &
EQUIPMENT--4.8%
100,700 Cal Dive International, Inc.*........... 5,456,681
56,700 Core Laboratories NV*................... 1,644,300
122,960 National-Oilwell, Inc.*................. 4,042,310
194,200 Precision Drilling Corp.*............... 7,500,975
167,800 Superior Energy Services, Inc.*......... 1,740,925
64,750 Varco International, Inc.*.............. 1,505,438
------------
21,890,629
------------
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS--8.6%
93,800 Alkermes, Inc.*......................... $ 4,420,325
62,805 Alpharma, Inc., Class A................. 3,909,611
83,700 Andrx Corp.*............................ 5,350,261
89,100 Jones Pharma, Inc....................... 3,558,431
99,900 MedImmune, Inc.*........................ 7,392,600
80,300 Sepracor, Inc.*......................... 9,686,188
91,650 Shire Pharmaceuticals Group PLC ADR*.... 4,754,344
------------
39,071,760
------------
PUBLISHING--0.3%
25,000 Houghton Mifflin Co..................... 1,167,188
------------
RECORDS STORAGE--0.7%
95,345 Iron Mountain, Inc.*.................... 3,241,730
------------
RETAIL--SPECIALTY STORES--1.8%
85,825 Duane Reade, Inc.*...................... 2,209,994
31,750 Tiffany & Co............................ 2,143,125
115,000 Williams-Sonoma, Inc.*.................. 3,730,313
------------
8,083,432
------------
RETAILING--2.5%
100,000 BJ's Wholesale Club, Inc.*.............. 3,300,000
167,450 Linens 'n Things, Inc.*................. 4,542,081
71,100 The Children's Place Retail Stores,
Inc.*................................... 1,457,550
91,300 The Men's Wearhouse, Inc.*.............. 2,037,131
------------
11,336,762
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS--9.3%
106,900 Clearnet Communications, Inc., Class
A*...................................... $ 2,968,145
70,300 Digital Lightwave, Inc.*................ 7,065,150
39,750 Efficient Networks, Inc.*............... 2,924,109
210,100 Motient Corp.*.......................... 3,295,944
26,625 Next Level Communications, Inc.*........ 2,283,094
106,675 NEXTLINK Communications,
Inc., Class A*.......................... 4,046,983
81,580 Packeteer, Inc.*........................ 2,376,018
44,100 Powertel, Inc.*......................... 3,128,344
81,100 Telaxis Communications Corp.*........... 2,534,375
62,800 VoiceStream Wireless Corp.*............. 7,303,444
72,400 Western Wireless Corp., Class A*........ 3,945,800
------------
41,871,406
------------
TRANSPORTATION--0.2%
27,300 Swift Transportation Co., Inc.*......... 382,200
60,700 Werner Enterprises, Inc................. 701,844
------------
1,084,044
------------
TOTAL COMMON STOCKS
(Cost $244,462,314)..................... 430,159,798
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
MONEY MARKET FUND--4.1%
$18,544,327 ACM Institutional Reserves (Prime
Portfolio), 6.52%(a)
(Cost $18,544,327)...................... $ 18,544,327
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES
-----------
<C> <S> <C>
WARRANTS--0.0%
COMMUNICATIONS, MEDIA AND ENTERTAINMENT--0.0%
15 Acclaim Entertainment expiring
4/04/2002*
(Cost $0)............................... 11
------------
TOTAL INVESTMENTS
(Cost $263,006,641)(b)--99.3%........... 448,704,136
Other assets less liabilities--0.7%..... 3,092,661
------------
NET ASSETS--100.0%...................... $451,796,797
============
</TABLE>
ADR AMERICAN DEPOSITARY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED APPRECIATION WAS $185,697,495
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGRE-
GATE GROSS UNREALIZED APPRECIATION OF $207,832,099 AND AGGREGATE GROSS
UNREALIZED DEPRECIATION OF $22,134,604.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Cost $263,006,641)......................................................... $ 448,704,136
Cash.......................................................................... 32
Receivables:
Investments sold............................................................ 4,378,423
Capital stock sold.......................................................... 515,573
Interest.................................................................... 70,066
Dividends................................................................... 30,308
Deferred organization costs and other assets.................................. 13,456
--------------
TOTAL ASSETS................................................................ 453,711,994
--------------
LIABILITIES:
Payables:
Investments purchased....................................................... 1,369,191
Services provided by the Bank of New York and Administrator................. 347,635
Capital stock repurchased................................................... 186,052
Accrued expenses and other liabilities........................................ 12,319
--------------
TOTAL LIABILITIES........................................................... 1,915,197
--------------
NET ASSETS:..................................................................... $ 451,796,797
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 18,266
Capital surplus............................................................... 206,701,560
Accumulated net investment loss............................................... (1,515,028)
Accumulated net realized gain on investments.................................. 60,894,504
Net unrealized appreciation on investments.................................... 185,697,495
--------------
NET ASSETS...................................................................... $ 451,796,797
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 435,558,060
==============
Shares outstanding............................................................ 17,606,244
==============
Net asset value, offering price and repurchase price per share................ $ 24.74
==============
INVESTOR SHARES:
Net assets.................................................................... $ 16,238,737
==============
Shares outstanding............................................................ 659,543
==============
Net asset value, offering price and repurchase price per share................ $ 24.62
==============
Institutional Shares authorized @ $.001
par value..................................................................... 200,000,000
Investor Shares authorized at @ $.001
par value..................................................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends..................................................................... $ 184,277
Interest...................................................................... 494,828
--------------
TOTAL INCOME................................................................ 679,105
--------------
EXPENSES:
Advisory...................................................................... 1,583,319
Administration................................................................ 422,218
12b-1 fee--Investor Shares.................................................... 19,575
Transfer agent................................................................ 50,903
Custodian..................................................................... 37,466
Accounting services........................................................... 29,879
Registration and filings...................................................... 14,674
Reports to shareholders....................................................... 8,674
Legal......................................................................... 5,457
Audit......................................................................... 5,414
Organization.................................................................. 3,831
Insurance..................................................................... 3,713
Directors..................................................................... 2,697
Cash management............................................................... 1,679
Other......................................................................... 5,531
--------------
TOTAL EXPENSES.............................................................. 2,195,030
Earnings credit adjustment (Note 3)........................................... (897)
--------------
NET EXPENSES................................................................ 2,194,133
--------------
NET INVESTMENT LOSS......................................................... (1,515,028)
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on:
Investments................................................................. 43,637,991
Decrease in unrealized appreciation on:
Investments during the period............................................... (3,505,895)
--------------
Net realized and unrealized gain on investments............................... 40,132,096
--------------
Net increase in net assets resulting from operations.......................... $ 38,617,068
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss........................................................... $ (1,515,028) $ (1,783,917)
Net realized gain on investments.............................................. 43,637,991 45,847,162
Increase (decrease) in unrealized appreciation on investments during the
period...................................................................... (3,505,895) 156,806,864
------------- -------------
Net increase in net assets resulting from operations........................ 38,617,068 200,870,109
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from capital gains:
Institutional Shares.............................. -- (26,279,793)
Investor Shares................................... -- (1,007,248)
------------- -------------
-- (27,287,041)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 172,263,480 185,379,834
Investor Shares.................................. 43,963,235 99,736,662
Proceeds from shares issued on reinvestment
of distributions: Institutional Shares...................................... -- 24,088,440
Investor Shares............................................... -- 1,006,431
Cost of capital stock repurchased:
Institutional Shares............................ (163,223,358) (174,252,170)
Investor Shares................................. (44,438,372) (100,092,398)
------------- -------------
Net increase in net assets resulting from capital stock transactions........ 8,564,985 35,866,799
------------- -------------
INCREASE IN NET ASSETS.................................................... 47,182,053 209,449,867
NET ASSETS:
Beginning of year............................................................. 404,614,744 195,164,877
------------- -------------
End of period (includes accumulated net investment loss of $1,515,028 at
June 30, 2000).............................................................. $ 451,796,797 $ 404,614,744
============= =============
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 7,045,869 12,733,932
Investor Shares.................................................... 1,750,847 7,024,511
Shares issued on reinvestment of distributions:
Institutional Shares................. -- 1,144,693
Investor Shares...................... -- 48,004
Shares repurchased:
Institutional Shares......................................... (6,539,573) (11,897,764)
Investor Shares.............................................. (1,755,610) (6,951,929)
------------- -------------
Net increase................................................................ 501,533 2,101,447
Shares outstanding, beginning of year......................................... 17,764,254 15,662,807
------------- -------------
Shares outstanding, end of period............................................. 18,265,787 17,764,254
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
----------------------------------------------------------------
FOR THE PERIOD
APRIL 1, 1997*
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, 2000 ---------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997
---------------- ----------- ------------ ---------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 22.78 $ 12.46 $ 11.93 $ 10.00
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment loss..................... (0.08)(a) (0.11)(a) (0.02)(a) (0.02)
Net realized and unrealized gain on
investments........................... 2.04 12.08 0.91 2.80
-------- -------- -------- --------
Total from investment operations...... 1.96 11.97 0.89 2.78
-------- -------- -------- --------
DISTRIBUTIONS
Distributions from capital gains........ -- (1.65) (0.36) (0.85)
-------- -------- -------- --------
Net asset value at end of period........ $ 24.74 $ 22.78 $ 12.46 $ 11.93
======== ======== ======== ========
TOTAL RETURN:........................... 8.60%** 97.22% 7.89% 27.80%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $435,558 $389,553 $188,402 $133,741
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.03%*** 1.04% 0.97% 0.97%***
Expenses, prior to waiver from The
Bank of New York.................... 1.03%*** 1.06% 1.13% 1.10%***
Net investment loss, net of waiver
from The Bank of New York........... (0.71)%*** (0.73)% (0.19)% (0.26)%***
Portfolio turnover rate................. 26% 86% 84% 68%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
(a) BASED ON AVERAGE SHARES OUTSTANDING.
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
---------------------------------------------------------------
FOR THE
PERIOD
MAY 1, 1997*
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, 2000 ---------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997
---------------- ----------- ------------ --------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 22.67 $ 12.44 $ 11.94 $ 10.03
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment loss..................... (0.11)(a) (0.13)(a) (0.04)(a) (0.02)
Net realized and unrealized gain on
investments........................... 2.06 12.01 0.90 2.78
------- ------- ------- -------
Total from investment operations...... 1.95 11.88 0.86 2.76
------- ------- ------- -------
DISTRIBUTIONS
Distributions from capital gains........ -- (1.65) (0.36) (0.85)
------- ------- ------- -------
Net asset value at end of period........ $ 24.62 $ 22.67 $ 12.44 $ 11.94
======= ======= ======= =======
TOTAL RETURN:........................... 8.60%** 96.65% 7.55% 27.52%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $16,239 $15,062 $ 6,763 $ 1,162
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.27%*** 1.33% 1.22% 1.22%***
Expenses, prior to waiver from The
Bank of New York.................... 1.27%*** 1.37% 1.46% 1.40%***
Net investment loss, net of waiver
from The Bank of New York........... (0.95)%*** (0.96)% (0.43)% (0.54)%***
Portfolio turnover rate................. 26% 86% 84% 68%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
(a) BASED ON AVERAGE SHARES OUTSTANDING.
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS--96.8%
AUSTRALIA--2.6%
65,009 AMP Ltd................................. $ 663,516
60,700 ERG Ltd................................. 472,670
73,500 FH Faulding & Co. Ltd................... 361,146
156,600 Foster's Brewing Group Ltd.............. 441,895
78,410 Gradipore Ltd.*......................... 251,857
33,394 Lend Lease Corp. Ltd.................... 427,209
58,130 National Australia Bank Ltd............. 973,650
51,075 News Corp. Ltd.(a)...................... 618,352
49,351 News Corp. Ltd.......................... 681,480
39,000 Publishing & Broadcasting Ltd........... 300,883
228,886 Qantas Airways Ltd...................... 464,478
235,420 Telstra Corp. Ltd....................... 537,101
94,680 Westpac Banking Corp. Ltd............... 684,975
127,000 WMC Ltd................................. 569,807
60,820 Woodside Petroleum Ltd.................. 474,700
------------
7,923,719
------------
CHINA--0.1%
2,530 AsiaInfo Holdings, Inc.*................ 113,059
356,000 Shandong International Power Development
Co. Ltd................................. 52,519
456,000 Shanghai Petrochemical Co. Ltd.......... 62,007
558,000 Yanzhou Coal Mining Co. Ltd............. 115,246
------------
342,831
------------
DENMARK--0.5%
21,210 Tele Danmark AS......................... 1,433,550
------------
FINLAND--3.7%
157,285 Nokia Oyj............................... 8,057,973
317,410 Nordic Baltic Holding AB FDR............ 2,318,283
29,100 Tietoenator Oyj......................... 974,835
------------
11,351,091
------------
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FRANCE--12.2%
66,580 Alcatel................................. $ 4,384,210
22,620 Aventis SA.............................. 1,657,528
10,755 Axa..................................... 1,700,925
11,700 Banque Nationale de Paris............... 1,130,413
2,090 Bouygues SA............................. 1,402,281
8,800 Cap Gemini SA........................... 1,556,216
32,940 Carrefour Supermarche SA................ 2,260,619
5,250 Compagnie de Saint-Gobain............... 712,547
21,550 Credit Lyonnais SA...................... 1,028,649
20,450 France Telecom SA....................... 2,869,625
483 L'Oreal SA.............................. 419,899
17,730 Lagardere S.C.A......................... 1,359,532
13,340 Pinault-Printemps-Redoute SA............ 2,975,384
4,810 PSA Peugeot Citroen..................... 969,100
11,200 Rexel SA................................ 864,181
7,700 Schneider Electric SA................... 538,771
38,020 STMicroelectronics NV................... 2,405,176
9,660 Suez Lyonnaise des Eaux SA.............. 1,699,042
34,300 Total Fina Elf, B Shares................ 5,279,958
20,355 Vivendi SA.............................. 1,803,719
------------
37,017,775
------------
GERMANY--6.7%
7,014 Allianz AG.............................. 2,502,935
22,200 BASF AG................................. 904,342
15,500 Bayerische Hypo - und Vereinsbank AG.... 1,017,684
9,960 DaimlerChrysler AG...................... 530,793
59,620 Deutsche Telekom AG, Registered
Shares.................................. 3,451,594
22,370 Dresdner Bank AG........................ 909,123
6,250 Fresenius AG............................ 1,438,345
5,197 Muenchener Rueckversicherungs -
Gesellschaft AG......................... 1,633,869
16,143 SAP AG.................................. 2,644,074
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
20,505 Siemens AG.............................. $ 3,081,744
25,230 Veba AG................................. 1,221,236
26,150 Volkswagen AG........................... 1,010,107
------------
20,345,846
------------
HONG KONG--2.0%
40,000 ASM Pacific Technology Ltd.............. 149,834
33,000 Bank of East Asia Ltd................... 77,046
299,600 Cable & Wireless HKT Ltd................ 659,133
110,000 Cathay Pacific Airways.................. 203,905
23,000 Cheung Kong (Holdings) Ltd.............. 254,480
30,000 China Mobile (Hong Kong) Ltd.*.......... 264,583
32,000 China Unicom*........................... 67,938
39,000 CLP Holdings Ltd........................ 181,609
112,000 Giordano International Ltd.............. 170,256
62,000 Guoco Group Ltd......................... 124,472
32,700 Hang Seng Bank Ltd...................... 310,418
30,000 Henderson Land Development Co. Ltd...... 132,003
128,700 Hong Kong & China Gas Co. Ltd........... 144,462
26,000 Hongkong Electric Holdings Ltd.......... 83,717
60,000 HSBC Holdings PLC....................... 685,028
118,200 Hutchison Whampoa Ltd................... 1,485,972
300,000 JCG Holdings Ltd........................ 150,090
39,000 Li & Fung Ltd........................... 195,118
41,000 Sun Hung Kai Properties Ltd............. 294,536
21,000 Swire Pacific Ltd., A Shares............ 122,843
32,000 Television Broadcasts Ltd............... 213,462
------------
5,970,905
------------
IRELAND--0.4%
69,480 CRH PLC................................. 1,262,001
------------
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ITALY--2.7%
43,100 Assicurazioni Generali.................. $ 1,483,073
114,962 ENI SpA................................. 666,654
67,770 San Paolo - IMI SpA..................... 1,207,557
335,164 Telecom Italia Mobile SpA............... 3,437,415
110,930 Telecom Italia SpA...................... 1,531,096
------------
8,325,795
------------
JAPAN--31.3%
91,000 Asahi Glass Co. Ltd..................... 1,019,186
1,500 Bellsystem 24, Inc...................... 737,205
41,000 Canon, Inc.............................. 2,046,028
200,000 Daifuku Co. Ltd......................... 2,222,957
153,000 Daiwa Securities Group, Inc............. 2,024,479
112 DDI Corp................................ 1,079,722
30,000 Fanuc Ltd............................... 3,059,402
7,200 Fast Retailing Co. Ltd.................. 3,021,407
82,000 Fujitsu Ltd............................. 2,844,289
111,000 Hitachi Ltd............................. 1,605,123
212,000 Hitachi Metals Ltd...................... 1,897,491
178,000 Hokuetsu Paper Mills Ltd................ 1,510,741
10,000 Hoya Corp............................... 897,878
146,000 Industrial Bank of Japan Ltd............ 1,109,437
200,000 Kaneka Corp............................. 2,209,725
70,000 KAO Corp................................ 2,143,566
22,800 Konami Co. Ltd.......................... 1,443,788
148,000 Makino Milling Machine Co. Ltd.......... 1,454,752
195,000 Marubeni Corp........................... 672,700
9,000 Matsushita Communication Industrial Co.
Ltd..................................... 1,053,069
74,000 Mitsui Fudosan Co. Ltd.................. 804,310
63,000 MKC-Stat Corp........................... 1,155,144
5,000 Murata Manufacturing Co. Ltd............ 719,248
51,000 NEC Corp................................ 1,605,123
136,000 Nikko Securities Co. Ltd................ 1,349,653
31,000 Nippon COMSYS Corp...................... 660,697
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
47,000 Nippon Electric Glass Co. Ltd........... $ 1,088,323
370,000 Nippon Steel Corp....................... 779,831
107 Nippon Telegraph & Telephone Corp....... 1,425,925
1,000 Nippon Television Network Corp.*........ 654,033
1,000 Nippon Television Network Corp.......... 652,143
31,000 Nitto Denko Corp........................ 1,198,337
55 NTT Data Corp........................... 566,608
253 NTT DoCoMo, Inc......................... 6,862,719
26,000 Ono Pharmaceutical Co. Ltd.............. 1,118,095
12,840 Orix Corp............................... 1,899,211
12,400 Paris Miki, Inc......................... 808,657
177,000 Q.P. Corp............................... 1,480,507
144,000 Rengo Co. Ltd........................... 781,211
87,000 Ricoh Co. Ltd........................... 1,845,990
9,000 Rohm Co. Ltd............................ 2,636,926
253,000 Sakura Bank Ltd......................... 1,752,743
206,000 Sanyo Electric Co. Ltd.................. 1,857,417
38,000 Secom Co. Ltd........................... 2,783,422
53,000 Sekisui House Ltd....................... 491,404
32,000 Seven-Eleven Japan Co. Ltd.............. 2,682,671
103,000 Sharp Corp.............................. 1,825,292
60,000 Shin-Etsu Chemical Co. Ltd.............. 3,050,896
9,300 Softbank Corp........................... 1,265,725
14,800 Sony Corp............................... 1,384,812
229,000 Sumitomo Marine & Fire Insurance Co.
Ltd..................................... 1,335,409
61,000 Suzuki Motor Corp....................... 788,696
43,000 Taisho Pharmaceutical Co. Ltd........... 1,544,350
21,000 Taiyo Yuden Co. Ltd..................... 1,317,896
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
32,000 Takeda Chemical Industries Ltd.......... $ 2,105,005
25,000 Terumo Corp............................. 848,259
112,000 Toyota Motor Corp....................... 5,112,802
47,000 Yamato Transport Co. Ltd................ 1,170,502
------------
95,462,937
------------
MALAYSIA--0.5%
43,800 AMMB Holdings Berhad.................... 146,384
23,000 British American Tabacco Berhad......... 187,632
19,200 Malayan Banking Berhad.................. 77,811
121,000 Public Bank Berhad...................... 121,000
58,000 Resorts World Berhad.................... 158,737
256,000 Sime Darby Berhad....................... 328,758
20,000 Tanjong PLC............................. 47,895
138,000 Tenaga Nasional Berhad.................. 450,316
55,000 The New Straits Times Press (M)
Berhad.................................. 130,263
------------
1,648,796
------------
NETHERLANDS--8.4%
36,416 Aegon NV................................ 1,300,896
66,130 Ahold NV................................ 1,954,172
38,110 Akzo Nobel NV........................... 1,625,510
78,000 CMG PLC................................. 1,106,489
63,957 Fortis (NL) NV.......................... 1,869,116
30,112 ING Groep NV............................ 2,043,448
31,050 KPN NV.................................. 1,394,319
43,371 Numico NV............................... 2,066,078
78,200 Philips Electronics NV.................. 3,702,751
93,110 Royal Dutch Petroleum Co................ 5,809,893
26,740 Unilever NV............................. 1,231,532
26,500 VNU NV.................................. 1,374,149
------------
25,478,353
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
NEW ZEALAND--0.2%
44,269 Fisher & Paykel Industries Ltd.......... $ 139,624
158,699 Fletcher Challenge Energy............... 519,210
1,155 Telecom Corp. of New Zealand Ltd........ 4,051
------------
662,885
------------
NORWAY--0.4%
49,922 Tomra Systems ASA....................... 1,328,691
------------
PHILIPPINES--0.0%
1,750,000 Pryce Corp.*............................ 40,076
------------
PORTUGAL--0.2%
12,025 PT - Multimedia.com - Servicos de Acesso
a Internet, S.G.P.S. SA*................ 92,553
12,025 PT Multimedia - Servicos de
Telecomunicacoes e Multimedia S.G.P.S.
SA*..................................... 599,348
------------
691,901
------------
SINGAPORE--0.7%
8,000 Chartered Semiconductor Manufacturing
Ltd.*................................... 69,867
47,000 City Developments Ltd................... 182,128
28,000 DBS Group Holdings Ltd.................. 359,514
135,000 DBS Land Ltd............................ 174,899
142,218 Neptune Orient Lines Ltd.*.............. 131,607
35,173 Overseas Union Bank Ltd................. 136,298
64,800 Overseas-Chinese Banking Corp. Ltd...... 445,992
12,000 Parkway Holdings Ltd.................... 30,677
28,000 Singapore Airlines Ltd.................. 276,923
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
185,000 Singapore Technologies Engineering
Ltd..................................... $ 271,776
54,000 Singapore Telecommunications Ltd........ 79,017
------------
2,158,698
------------
SOUTH KOREA--0.2%
2,021 Samsung Electronics Co.................. 668,818
------------
SPAIN--3.1%
146,850 Amadeus Global Travel Distribution
SA*..................................... 1,682,026
194,670 Banco Bilbao Vizcaya Argentaria SA*..... 2,920,143
123,450 Banco Santander Central Hispano SA...... 1,307,507
156,890 Telefonica SA*.......................... 3,383,519
------------
9,293,195
------------
SWEDEN--3.3%
100,160 Skandia Forsakrings AB.................. 2,660,732
376,108 Ericsson AB, B Shares................... 7,482,710
------------
10,143,442
------------
SWITZERLAND--3.8%
6,751 ABB Ltd................................. 810,610
1,619 Adecco SA............................... 1,379,948
6,365 Credit Suisse Group..................... 1,270,182
214 Givaudan*............................... 65,341
565 Nestle SA............................... 1,134,447
2,510 Novartis AG............................. 3,988,586
187 Roche Holding AG........................ 1,826,185
2,300 Zurich Allied AG........................ 1,140,028
------------
11,615,327
------------
THAILAND--0.0%
40,600 ABN Amro Asia Securities Public Co.
Ltd..................................... 18,113
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UNITED KINGDOM--13.8%
69,140 Barclays PLC............................ $ 1,716,464
771,500 BP PLC.................................. 7,404,345
140,580 British Telecommunications PLC.......... 1,817,368
62,900 Cable & Wireless PLC.................... 1,068,329
640,500 Centrica PLC............................ 2,123,365
106,995 Compass Group PLC....................... 1,411,537
188,363 Dixons Group PLC........................ 767,025
20,163 Energis PLC*............................ 756,341
125,475 Glaxo Wellcome PLC...................... 3,656,364
107,833 HSBC Holdings PLC....................... 1,234,056
372,020 Invensys PLC............................ 1,395,216
121,677 Kingfisher PLC.......................... 1,105,150
152,225 Lloyds TSB Group PLC.................... 1,442,520
51,719 Pearson PLC............................. 1,624,537
108,973 SEMA Group PLC.......................... 1,532,484
187,340 SmithKline Beecham PLC.................. 2,461,567
2,047,020 Vodafone AirTouch PLC................... 8,304,592
148,915 WPP Group PLC........................... 2,162,942
------------
41,984,202
------------
TOTAL COMMON STOCKS
(Cost $261,194,379)..................... 295,168,947
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- ------------
<C> <S> <C>
WARRANTS--0.0%
GERMANY--0.0%
50 Muenchener Rueckversicherungs -
Gesellschaft AG expiring 6/30/2002
(Cost $2,030)........................... $ 4,073
------------
TOTAL INVESTMENTS
(Cost $261,196,409)(b)--96.8%........... 295,173,020
Other assets less liabilities--3.2%..... 9,670,535
------------
NET ASSETS--100.0%...................... $304,843,555
============
</TABLE>
FDR FINNISH DEPOSITARY RECEIPT
* NON-INCOME PRODUCING SECURITY.
(a) SECURITY IS CONSIDERED A PREFERRED ORDINARY SHARE WITH LIMITED VOTING
RIGHTS.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED APPRECIATION WAS $33,976,611
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $50,178,006 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $16,201,395.
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
INDUSTRY DIVERSIFICATION
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF
TOTAL
US$ VALUE NET ASSETS
------------ ----------
<S> <C> <C>
Advertising and Marketing Services...... $ 2,162,942 0.7%
Aerospace and Defense................... 587,321 0.2
Appliances.............................. 139,624 0.1
Automobiles and Trucks.................. 1,798,803 0.6
Automotive.............................. 6,612,695 2.2
Bank Holding Companies.................. 4,383,751 1.4
Banking................................. 18,424,465 6.0
Banks--Foreign Institutions............. 121,000 0.0
Banks--Money Center..................... 6,351,754 2.1
Brokerage Services...................... 2,024,479 0.7
Building Materials...................... 4,609,518 1.5
Building and Building Products.......... 1,019,186 0.3
Business Equipment and Services......... 1,845,990 0.6
Chemicals--Basic........................ 2,209,725 0.7
Chemicals--Diversified.................. 5,580,748 1.8
Chemicals--Petroleum and Inorganic...... 62,007 0.0
Chemicals--Specialty.................... 1,480,507 0.5
Commercial Services..................... 737,205 0.2
Computer Services....................... 2,662,705 0.9
Computers............................... 1,605,123 0.5
Computers--Software & Peripherals....... 13,320,309 4.4
Conglomerates........................... 3,618,449 1.2
Consumer Staples........................ 419,899 0.1
Cosmetics and Toiletries................ 65,341 0.0
Defense................................. 271,776 0.1
Electrical Equipment.................... 1,486,669 0.5
Electrical and Electronic Equipment..... 4,857,756 1.6
Electronic Equipment & Components....... 22,134,603 7.3
Electronics............................. 1,198,337 0.4
Energy.................................. 5,279,958 1.7
Engineering............................. 810,610 0.3
Entertainment........................... 372,199 0.1
Environment Managment................... 1,328,691 0.4
Finance Companies....................... 1,349,653 0.4
Financial Services...................... 3,282,496 1.1
Financial Services--Diversified......... 3,768,327 1.2
Food & Beverages........................ 4,407,043 1.4
Food Processing......................... 1,954,172 0.6
Food Products........................... 2,066,078 0.7
Forest and Paper Products............... 2,291,952 0.8
Health & Medical Facilities............. 30,677 0.0
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
INDUSTRY DIVERSIFICATION (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF
TOTAL
US$ VALUE NET ASSETS
------------ ----------
<S> <C> <C>
Health Care Products and Services....... $ 2,105,005 0.7%
Healthcare.............................. 3,309,826 1.1
Holdings Companies--Diversified......... 495,042 0.2
Human Resources......................... 1,379,948 0.5
Insurance............................... 8,284,682 2.7
Insurance--Health, Life & Multi--Line... 1,300,896 0.4
Insurance--Multi--Line.................. 2,364,441 0.8
Leisure and Recreation Products......... 47,895 0.0
Machinery & Engineering................. 131,607 0.1
Machinery & Equipment................... 5,575,200 1.8
Manufacturing--Miscellaneous............ 1,402,281 0.5
Media................................... 4,457,412 1.5
Medical Care & Products................. 1,909,385 0.6
Medical Products and Supplies........... 2,442,228 0.8
Metal--Non--Ferrous..................... 569,807 0.2
Multi--Industry......................... 1,359,532 0.4
Oil and Gas............................. 8,691,693 2.9
Oil..................................... 7,404,345 2.4
Pharmaceuticals......................... 10,562,536 3.5
Publishing.............................. 4,756,776 1.6
Real Estate Development................. 1,882,432 0.6
Retail--Department Stores............... 4,080,534 1.3
Retail--Food Stores..................... 2,260,619 0.7
Retail--Specialty Stores................ 3,830,064 1.3
Retailing............................... 3,619,952 1.2
Steel................................... 779,831 0.3
Telecommunications...................... 56,747,512 18.6
Telecommunications--Non--U.S............ 264,583 0.1
Trading Companies....................... 52,519 0.0
Transportation.......................... 392,169 0.1
Transportation Services................. 1,170,502 0.4
Transportation: Air..................... 203,905 0.1
Travel Services......................... 1,682,026 0.6
Utilities............................... 631,925 0.2
Utilities--Gas.......................... 2,267,827 0.7
Utilities--Telecommunications........... 2,148,051 0.7
Utilities--Water........................ 3,501,747 1.1
Water Projects.......................... 1,699,042 0.6
Wholesale Trade--Miscellaneous.......... 672,700 0.2
------------ -------
Total Value of Investments.............. 295,173,020 96.8
Other assets less liabilities........... 9,670,535 3.2
------------ -------
Net Assets.............................. $304,843,555 100.0%
============ =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at value, (Cost $261,196,409)..................................... $ 295,173,020
Cash.......................................................................... 3,031,657
Receivables:
Currency contracts sold..................................................... 4,782,485
Investments sold............................................................ 4,708,508
Dividends................................................................... 648,111
Capital stock sold.......................................................... 309,621
Deferred organization costs and other assets.................................. 7,871
--------------
TOTAL ASSETS................................................................ 308,661,273
--------------
LIABILITIES:
Payables:
Investments purchased....................................................... 1,882,466
Currency contracts purchased................................................ 1,212,403
Services provided by the Bank of New York and Administrator................. 239,057
Capital stock repurchased..................................................... 381,263
Accrued expenses and other liabilities........................................ 102,529
--------------
TOTAL LIABILITIES........................................................... 3,817,718
--------------
NET ASSETS:..................................................................... $ 304,843,555
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 19,666
Capital surplus............................................................... 245,664,741
Undistributed net investment income........................................... 569,404
Accumulated net realized gain on investments.................................. 24,705,584
Net unrealized appreciation on investments.................................... 33,976,611
Net unrealized depreciation on foreign currency denominated assets and
liabilities................................................................. (92,451)
--------------
NET ASSETS...................................................................... $ 304,843,555
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 296,501,437
==============
Shares outstanding............................................................ 19,123,919
==============
Net asset value, offering price and repurchase price per share................ $ 15.50
==============
INVESTOR SHARES:
Net assets.................................................................... $ 8,342,118
==============
Shares outstanding............................................................ 542,134
==============
Net asset value, offering price and repurchase price per share................ $ 15.39
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $240,352)...................... $ 2,069,191
Interest...................................................................... 264,621
--------------
TOTAL INCOME................................................................ 2,333,812
--------------
EXPENSES:
Advisory...................................................................... 1,249,319
Administration................................................................ 293,957
12b-1 fee--Investor Shares.................................................... 14,883
Custodian..................................................................... 68,085
Transfer agent................................................................ 50,834
Accounting services........................................................... 38,833
Registration and filings...................................................... 11,508
Reports to shareholders....................................................... 6,149
Audit......................................................................... 4,344
Legal......................................................................... 3,865
Insurance..................................................................... 2,965
Directors..................................................................... 2,700
Organization.................................................................. 2,002
Cash management............................................................... 1,803
Other......................................................................... 14,473
--------------
TOTAL EXPENSES.............................................................. 1,765,720
Earnings credit adjustment (Note 3)........................................... (14)
--------------
NET EXPENSES................................................................ 1,765,706
--------------
NET INVESTMENT INCOME....................................................... 568,106
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on:
Investments................................................................. 13,225,967
Foreign currency transactions............................................... (509,255)
--------------
Net realized gain on investments and foreign currency transactions............ 12,716,712
--------------
Decrease in unrealized appreciation on:
Investments................................................................. (48,753,440)
Foreign currency denominated assets and liabilities......................... (29,192)
--------------
Net unrealized loss on investments and foreign currency denominated assets and
liabilities during the period............................................... (48,782,632)
--------------
Net realized and unrealized loss on investments and foreign currency
transactions................................................................ (36,065,920)
--------------
Net decrease in net assets resulting from operations.......................... $ (35,497,814)
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 568,106 $ 7,029
Net realized gain on investments and foreign currency transactions............ 12,716,712 34,323,988
Increase (decrease) in unrealized appreciation (depreciation) on investments
and foreign currency denominated assets and liabilities during the period... (48,782,632) 51,887,570
------------- -------------
Net increase (decrease) in net assets resulting from operations............. (35,497,814) 86,218,587
------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... -- (495,845)
Investor Shares........................... -- (1,523)
Distributions from capital gains:
Institutional Shares............................. -- (10,390,044)
Investor Shares.................................. -- (331,182)
------------- -------------
-- (11,218,594)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 184,759,261 204,005,338
Investor Shares.................................. 180,050,455 131,551,449
Proceeds from shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... -- 7,833,763
Investor Shares............................................. -- 332,070
Cost of capital stock repurchased:
Institutional Shares............................ (125,957,017) (186,743,669)
Investor Shares................................. (184,118,729) (129,125,341)
------------- -------------
Increase in net assets resulting from capital stock transactions............ 54,733,970 27,853,610
------------- -------------
INCREASE IN NET ASSETS.................................................... 19,236,156 102,853,603
NET ASSETS:
Beginning of year............................................................. 285,607,399 182,753,796
------------- -------------
End of period (including undistributed net investment income of $569,404 at
June 30, 2000 and $1,298 at December 31, 1999).............................. $ 304,843,555 $ 285,607,399
============= =============
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 11,271,824 14,461,518
Investor Shares.................................................... 11,136,409 9,214,607
Shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... -- 473,630
Investor Shares............................................. -- 20,199
Shares repurchased:
Institutional Shares......................................... (7,605,503) (13,228,139)
Investor Shares.............................................. (11,276,923) (8,972,084)
------------- -------------
Net increase................................................................ 3,525,807 1,969,731
Shares outstanding, beginning of year......................................... 16,140,246 14,170,515
------------- -------------
Shares outstanding, end of period............................................. 19,666,053 16,140,246
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
----------------------------------------------
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
2000 ------------------------------
(UNAUDITED) 1999 1998
----------- ------------ --------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 17.70 $ 12.90 $ 10.69
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.03 -- 0.03
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions.......................... (2.23) 5.55 2.20
-------- -------- --------
Total from investment operations...... (2.20) 5.55 2.23
-------- -------- --------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.... -- (0.03) (0.02)
Distributions from capital gains........ -- (0.72) --
-------- -------- --------
Total dividends and distributions..... -- (0.75) (0.02)
-------- -------- --------
Net asset value at end of period........ $ 15.50 $ 17.70 $ 12.90
======== ======== ========
TOTAL RETURN:........................... (12.43)%** 43.45% 20.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $296,501 $273,597 $177,363
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.19%*** 1.24% 1.27%
Expenses, prior to waiver from The
Bank of New York.................... 1.19%*** 1.24% 1.32%
Net investment income
net of waiver from The Bank of
New York............................ 0.40%*** 0.01% 0.54%
Portfolio turnover rate................. 30% 84% 75%
<CAPTION>
INSTITUTIONAL SHARES
--------------
FOR THE
PERIOD
APRIL 1, 1997*
THROUGH
DECEMBER 31,
1997
--------------
<S> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.02
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions.......................... 0.67
-------
Total from investment operations...... 0.69
-------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.... --
Distributions from capital gains........ --
-------
Total dividends and distributions..... --
-------
Net asset value at end of period........ $ 10.69
=======
TOTAL RETURN:........................... 6.90%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $94,806
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.26%***
Expenses, prior to waiver from The
Bank of New York.................... 1.49%***
Net investment income
net of waiver from The Bank of
New York............................ 0.26%***
Portfolio turnover rate................. 36%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
----------------------------------------------
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
2000 ------------------------------
(UNAUDITED) 1999 1998
----------- ------------ --------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 17.59 $ 12.84 $ 10.66
-------- -------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)............ 0.01 (0.04) 0.03
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions.......................... (2.21) 5.51 2.17
-------- -------- -------
Total from investment operations...... (2.20) 5.47 2.20
-------- -------- -------
DIVIDENDS
Dividends from net investment income.... -- -- (0.02)
Distributions from capital gains........ -- (0.72) --
-------- -------- -------
Total dividends and distributions..... -- (0.72) (0.02)
-------- -------- -------
Net asset value at end of period........ $ 15.39 $ 17.59 $ 12.84
======== ======== =======
TOTAL RETURN:........................... (12.51)%** 43.00% 20.61%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $ 8,342 $ 12,010 $ 5,391
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.39%*** 1.52% 1.52%
Expenses, prior to waiver from The
Bank of New York.................... 1.39%*** 1.55% 1.65%
Net investment income
net of waiver from The Bank of
New York............................ 0.09%*** (0.27)% 0.32%
Portfolio turnover rate................. 30% 84% 75%
<CAPTION>
INVESTOR SHARES
------------
FOR THE
PERIOD
MAY 1, 1997*
THROUGH
DECEMBER 31,
1997
------------
<S> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 10.19
-------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)............ 0.02
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions.......................... 0.45
-------
Total from investment operations...... 0.47
-------
DIVIDENDS
Dividends from net investment income.... --
Distributions from capital gains........ --
-------
Total dividends and distributions..... --
-------
Net asset value at end of period........ $ 10.66
=======
TOTAL RETURN:........................... 4.61%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $ 2,560
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.52%***
Expenses, prior to waiver from The
Bank of New York.................... 1.75%***
Net investment income
net of waiver from The Bank of
New York............................ 0.33%***
Portfolio turnover rate................. 36%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS--72.0%
BANKING AND FINANCE--3.7%
380,000 Mellon Financial Corp.................................. $ 13,846,250
125,000 Northern Trust Corp.................................... 8,132,812
------------
21,979,062
------------
BEVERAGES, FOOD AND TOBACCO--0.8%
250,000 Ralston-Ralston Purina Group........................... 4,984,375
------------
CHEMICALS--1.0%
130,000 duPont (E.I.) de Nemours & Co.......................... 5,687,500
------------
COMMUNICATIONS EQUIPMENT AND SYSTEMS--1.4%
160,000 Nokia Corp. ADR........................................ 7,990,000
------------
COMMUNICATIONS, MEDIA AND ENTERTAINMENT--5.5%
80,000 AMFM, Inc.*............................................ 5,520,000
91,100 Clear Channel Communications, Inc.*.................... 6,832,500
200,000 Comcast Corp., Class A*................................ 8,100,000
90,000 Infinity Broadcasting Corp., Series A*................. 3,279,375
150,000 Seagram Co. Ltd........................................ 8,700,000
------------
32,431,875
------------
COMPUTERS--MICRO--2.0%
130,000 Sun Microsystems, Inc.*................................ 11,821,875
------------
COMPUTERS--SOFTWARE AND
PERIPHERALS--4.1%
140,000 Cisco Systems, Inc.*................................... 8,898,750
200,000 EMC Corp.*............................................. 15,387,500
------------
24,286,250
------------
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONGLOMERATES--2.2%
250,000 General Electric Co.................................... $ 13,250,000
------------
ELECTRONIC EQUIPMENT AND COMPONENTS--2.9%
150,000 Emerson Electric Co.................................... 9,056,250
200,000 Solectron Corp.*....................................... 8,375,000
------------
17,431,250
------------
FINANCIAL SERVICES--4.9%
187,500 Chase Manhattan Corp................................... 8,636,719
70,000 Merrill Lynch & Co., Inc............................... 8,050,000
150,000 Morgan Stanley Dean Witter & Co........................ 12,487,500
------------
29,174,219
------------
HEALTH CARE PRODUCTS AND SERVICES--3.8%
169,200 Johnson & Johnson...................................... 17,237,250
100,000 Medtronic, Inc......................................... 4,981,250
------------
22,218,500
------------
HOUSEHOLD AND PERSONAL CARE PRODUCTS--1.4%
140,000 Colgate-Palmolive Co................................... 8,382,500
------------
INSURANCE--0.8%
40,000 American International Group, Inc...................... 4,700,000
------------
OIL & GAS--8.9%
200,000 BP Amoco PLC ADR....................................... 11,312,500
162,400 Exxon Mobil Corp....................................... 12,748,400
90,000 Schlumberger Ltd....................................... 6,716,250
150,000 Total Fina Elf SA ADR.................................. 11,521,875
245,000 Williams Cos., Inc..................................... 10,213,437
------------
52,512,462
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS--3.4%
180,000 Bristol-Myers Squibb Co................................ $ 10,485,000
200,000 Pfizer, Inc............................................ 9,600,000
------------
20,085,000
------------
REAL ESTATE INVESTMENT TRUSTS--9.8%
175,000 Apartment Investment & Management Co................... 7,568,750
200,000 Avalonbay Communities, Inc............................. 8,350,000
320,000 Duke-Weeks Realty Corp................................. 7,160,000
200,000 Equity Office Properties Trust......................... 5,512,500
135,000 Equity Residential Properties Trust.................... 6,210,000
240,000 General Growth Properties, Inc......................... 7,620,000
74,900 Kimco Realty Corp...................................... 3,070,900
150,000 Plum Creek Timber Co., Inc............................. 3,900,000
400,000 ProLogis Trust......................................... 8,525,000
------------
57,917,150
------------
RETAIL--DISCOUNT STORES--0.7%
132,500 Costco Wholesale Corp.*................................ 4,372,500
------------
RETAIL--SPECIALTY STORES--2.0%
170,000 Circuit City Stores-Circuit City Group................. 5,641,875
150,000 Lowe's Cos., Inc....................................... 6,159,375
------------
11,801,250
------------
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS--7.4%
150,000 AT&T Corp.............................................. $ 4,743,750
150,000 BellSouth Corp......................................... 6,393,750
65,000 Corning, Inc........................................... 17,541,875
100,000 Lucent Technologies, Inc............................... 5,925,000
210,000 SBC Communications, Inc................................ 9,082,500
------------
43,686,875
------------
UTILITIES--GAS & ELECTRIC--4.5%
190,000 Enron Corp............................................. 12,255,000
200,000 Montana Power Co....................................... 7,062,500
75,000 TXU Corp............................................... 2,212,500
125,000 Unicom Corp............................................ 4,835,938
------------
26,365,938
------------
UTILITIES--WATER--0.8%
192,100 American Water Works Co., Inc.......................... 4,802,500
------------
TOTAL COMMON STOCKS
(Cost $293,889,450).................................... 425,881,081
------------
</TABLE>
<TABLE>
<C> <S> <C>
CONVERTIBLE PREFERRED
STOCKS--13.9%
COMMUNICATIONS EQUIPMENT AND SYSTEMS--0.7%
120,000 PSINet, Inc............................................ 4,095,000
------------
COMMUNICATIONS, MEDIA AND ENTERTAINMENT--1.2%
51,000 MediaOne Group PIES(a)................................. 4,586,812
50,000 Seagram Co., Ltd. (Canada) ACES........................ 2,687,500
------------
7,274,312
------------
CONTAINERS AND PACKAGING--0.6%
70,000 Sealed Air Corp., Series A............................. 3,543,750
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
CONVERTIBLE PREFERRED
STOCKS (CONTINUED)
HOUSEHOLD AND PERSONAL CARE PRODUCTS--0.5%
33,000 Estee Lauder TRACES.................................... $ 2,953,500
------------
INSURANCE--2.7%
200,000 MetLife Capital Trust I................................ 13,837,500
40,000 PLC Capital Trust II................................... 1,830,000
------------
15,667,500
------------
OIL & GAS--1.2%
200,000 Coastal Corp........................................... 7,000,000
------------
REAL ESTATE INVESTMENT TRUSTS--0.2%
50,000 Apartment Investment & Management Co................... 1,368,750
------------
RETAIL--GENERAL MERCHANDISE--0.5%
80,000 Merrill Lynch DG STRYPES(b)............................ 2,820,000
------------
TECHNOLOGY INDUSTRIES--0.7%
80,000 Titan Capital Trust**.................................. 4,220,000
------------
TELECOMMUNICATIONS--1.0%
100,000 Global Telesystems Group(c)............................ 2,250,000
20,000 TCI Pacific Communications, Inc........................ 3,861,250
------------
6,111,250
------------
NUMBER OF
SHARES VALUE
----------- ------------
<C> <S> <C>
CONVERTIBLE PREFERRED
STOCKS (CONTINUED)
UTILITIES--GAS & ELECTRIC--4.6%
170,000 AES Trust III.......................................... $ 12,155,000
225,000 Enron Corp............................................. 6,975,000
100,000 NiSource, Inc.......................................... 3,956,250
100,000 TXU Corp............................................... 3,887,500
------------
26,973,750
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $75,856,580)..................................... 82,027,812
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
CONVERTIBLE BONDS--11.4%
COMMUNICATIONS EQUIPMENT AND SYSTEMS--2.5%
$ 5,000,000 Efficient Networks, Inc., 5.00%, 3/15/05**............. 3,631,250
2,000,000 Exodus Communications, Inc., 4.75%, 7/15/08............ 2,860,000
2,000,000 Level One Communications, Inc., 4.00%, 9/01/04(d)...... 8,475,000
------------
14,966,250
------------
COMMUNICATIONS, MEDIA AND ENTERTAINMENT--0.3%
1,500,000 Imax Corp. (Canada), 5.75%, 4/01/03.................... 1,702,500
------------
COMPUTERS--SOFTWARE AND PERIPHERALS--2.2%
1,100,000 VERITAS Software Corp., 5.25%, 11/01/04................ 13,011,625
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
CONVERTIBLE BONDS (CONTINUED)
ELECTRONIC EQUIPMENT AND COMPONENTS--1.3%
$ 1,500,000 Cypress Semiconductor Corp., 4.00%, 2/01/05............ $ 1,726,875
1,000,000 Cypress Semiconductor Corp., 3.75%, 7/01/05............ 976,250
5,000,000 SCI Systems, Inc.,
3.00%, 3/15/07......................................... 4,931,250
------------
7,634,375
------------
MEDIA--0.8%
3,750,000 Clear Channel Communications, Inc., 2.625%, 4/01/03.... 4,851,563
------------
OIL & GAS--1.0%
5,000,000 Kerr-McGee Corp.,
5.25%, 2/15/10......................................... 5,781,250
------------
PHARMACEUTICALS--2.2%
3,000,000 Alkermes, Inc.,
3.75%, 2/15/07......................................... 2,475,000
5,100,000 ALZA Corp.,
5.00%, 5/01/06......................................... 8,051,625
2,000,000 Human Genome Sciences, Inc., 5.00%, 2/01/07............ 2,642,500
------------
13,169,125
------------
REAL ESTATE INVESTMENT TRUSTS--0.3%
2,000,000 Pinnacle Holdings, Inc., 5.50%, 9/15/07**.............. 1,682,500
------------
TELECOMMUNICATIONS--0.8%
5,000,000 Level 3 Communications, Inc., 6.00%, 3/15/10........... 4,525,000
------------
TOTAL CONVERTIBLE BONDS
(Cost $50,267,008)..................................... 67,324,188
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
MONEY MARKET FUND--2.9%
$ 995,590 ACM Institutional Reserves (Government Portfolio),
6.31%(e)............................................... $ 995,590
16,497,400 ACM Institutional Reserves (Prime Portfolio),
6.52%(e)............................................... 16,497,400
------------
TOTAL MONEY MARKET FUND
(Cost $17,492,990)..................................... 17,492,990
------------
TOTAL INVESTMENTS
(Cost $437,506,028)(f)--100.2%......................... 592,726,071
Liabilities in excess of
other assets--(0.2%)................................... (1,234,733)
------------
NET ASSETS--100.0%..................................... $591,491,338
============
</TABLE>
ACES AUTOMATIC COMMON EXCHANGE SECURITIES.
ADR AMERICAN DEPOSITARY RECEIPT.
PIES PREMIUM INCOME EXCHANGEABLE SECURITIES.
STRYPES STRUCTURED YIELD PRODUCT EXCHANGEABLE FOR STOCK.
TRACES TRUST AUTOMATIC COMMON EXHCANGE SECURITIES.
* NON-INCOME PRODUCING SECURITY
** SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933.
(a) CONVERTIBLE TO AIRTOUCH COMMUNICATIONS, INC. COMMON STOCK.
(b) CONVERTIBLE TO DOLLAR GENERAL CORP. COMMON STOCK.
(c) CONVERTIBLE TO AT&T CORP. COMMON STOCK.
(d) CONVERTIBLE TO INTEL COMMON STOCK.
(e) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(f) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED APPRECIATION WAS $155,220,043
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $184,655,887 AND AGGREGATE GROSS
UNREALIZED DEPRECIATION OF $29,435,844.
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Cost $437,506,028)......................................................... $592,726,071
Receivables:
Investments sold............................................................ 3,197,930
Dividends................................................................... 719,112
Interest.................................................................... 709,069
Capital stock sold.......................................................... 11,245
Other assets.................................................................. 1,555
-----------
TOTAL ASSETS................................................................ 597,364,982
-----------
LIABILITIES:
Due to custodian.............................................................. 20,120
Payables:
Investments purchased....................................................... 5,193,065
Services provided by the Bank of New York and Administrator................. 424,538
Capital stock repurchased................................................... 143,357
Accrued expenses and other liabilities........................................ 92,564
-----------
TOTAL LIABILITIES........................................................... 5,873,644
-----------
NET ASSETS:..................................................................... $591,491,338
===========
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 34,170
Capital surplus............................................................... 380,112,365
Undistributed net investment income........................................... 735,737
Accumulated net realized gain on investments.................................. 55,389,023
Net unrealized appreciation on investments.................................... 155,220,043
-----------
NET ASSETS...................................................................... $591,491,338
===========
INSTITUTIONAL SHARES:
Net assets.................................................................... $554,185,060
===========
Shares outstanding............................................................ 32,008,887
===========
Net asset value, offering price and repurchase price per share................ $ 17.31
===========
INVESTOR SHARES:
Net assets.................................................................... $37,306,278
===========
Shares outstanding............................................................ 2,160,888
===========
Net asset value, offering price and repurchase price per share................ $ 17.26
===========
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $7,425)........................ $ 6,138,754
Interest...................................................................... 1,627,773
------------
TOTAL INCOME................................................................ 7,766,527
------------
EXPENSES:
Advisory...................................................................... 1,753,856
Administration................................................................ 584,618
12b-1 fee--Investor Shares.................................................... 45,928
Transfer agent................................................................ 64,853
Custodian..................................................................... 31,542
Accounting services........................................................... 29,880
Reports to shareholders....................................................... 7,701
Legal......................................................................... 7,396
Audit......................................................................... 6,894
Insurance..................................................................... 5,064
Registration and filings...................................................... 3,627
Directors..................................................................... 2,697
Cash management............................................................... 190
Other......................................................................... 14,131
------------
TOTAL EXPENSES.............................................................. 2,558,377
Earnings credit adjustment (Note 3)........................................... (20,149)
------------
NET EXPENSES................................................................ 2,538,228
------------
NET INVESTMENT INCOME....................................................... 5,228,299
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on:
Investments................................................................. 36,737,972
Written call options........................................................ 1,793,128
------------
Net realized gain on investments.............................................. 38,531,100
------------
Decrease in unrealized appreciation on:
Investments................................................................. (10,778,208)
Written call options........................................................ (75,170)
------------
Net unrealized loss on investments during the period.......................... (10,853,378)
------------
Net realized and unrealized gain on investments............................... 27,677,722
------------
Net increase in net assets resulting from operations.......................... $ 32,906,021
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- ------------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 5,228,299 $ 9,111,350
Net realized gain on investments.............................................. 38,531,100 76,047,937
Decrease in unrealized appreciation on investments during the period.......... (10,853,378) (7,616,184)
------------ ------------
Net increase in net assets resulting from operations........................ 32,906,021 77,543,103
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (4,692,504) (8,805,615)
Investor Shares........................... (271,201) (532,118)
Distributions from capital gains:
Institutional Shares............................. -- (61,575,721)
Investor Shares.................................. -- (4,337,545)
------------ ------------
(4,963,705) (75,250,999)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 35,980,760 42,581,377
Investor Shares.................................. 6,353,926 37,448,839
Proceeds from shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... 1,517,570 63,410,942
Investor Shares............................................. 257,222 4,717,807
Cost of capital stock repurchased:
Institutional Shares............................ (56,723,803) (88,989,154)
Investor Shares................................. (9,081,130) (41,662,270)
------------ ------------
Net increase (decrease) in net assets resulting from capital stock
transactions.............................................................. (21,695,455) 17,507,541
------------ ------------
INCREASE IN NET ASSETS.................................................... 6,246,861 19,799,645
NET ASSETS:
Beginning of year............................................................. 585,244,477 565,444,832
------------ ------------
End of period (includes undistributed net investment income of $735,737 at
June 30, 2000 and $471,143 at December 31, 1999)............................ $591,491,338 $585,244,477
============ ============
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 2,167,066 2,509,514
Investor Shares.................................................... 390,903 2,177,216
Shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... 90,835 3,942,795
Investor Shares............................................. 15,466 292,850
Shares repurchased:
Institutional Shares......................................... (3,390,890) (5,188,493)
Investor Shares.............................................. (552,816) (2,413,590)
------------ ------------
Net increase (decrease)..................................................... (1,279,436) 1,320,292
Shares outstanding, beginning of year......................................... 35,449,211 34,128,919
------------ ------------
Shares outstanding, end of period............................................. 34,169,775 35,449,211
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-------------------------------------------------------------
YEAR ENDED FOR THE PERIOD
SIX MONTHS ENDED DECEMBER 31, APRIL 1, 1997*
JUNE 30, 2000 ------------------------ THROUGH
(UNAUDITED) 1999 1998 DECEMBER 31, 1997
---------------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 16.51 $ 16.57 $ 15.54 $ 14.21
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.15 0.28 0.28 0.25
Net realized and unrealized gain on
investments........................... 0.79 2.02 1.73 3.25
-------- -------- -------- --------
Total from investment operations...... 0.94 2.30 2.01 3.50
-------- -------- -------- --------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.... (0.14) (0.29) (0.27) (0.24)
Distributions from capital gains........ -- (2.07) (0.71) (1.93)
-------- -------- -------- --------
Total dividends and distributions..... (0.14) (2.36) (0.98) (2.17)
-------- -------- -------- --------
Net asset value at end of period........ $ 17.31 $ 16.51 $ 16.57 $ 15.54
======== ======== ======== ========
TOTAL RETURN:........................... 5.75%** 14.51% 13.18% 24.73%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $554,185 $547,250 $528,233 $522,524
Ratio to average net assets of:
Expenses.............................. 0.85%*** 0.87% 0.89% 0.87%***
Net investment income................. 2.66%*** 1.63% 1.77% 2.07%***
Portfolio turnover rate................. 23% 53% 39% 65%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
-------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 -----------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
---------------- ------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 16.47 $ 16.53 $ 15.53 $ 14.12 $ 12.99 $ 10.70
------- ------- ------- ------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.13 0.24 0.25 0.35 0.30 0.32
Net realized and unrealized gain on
investments........................... 0.78 2.01 1.71 3.27 2.22 2.41
------- ------- ------- ------- -------- --------
Total from investment operations...... 0.91 2.25 1.96 3.62 2.52 2.73
------- ------- ------- ------- -------- --------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.... (0.12) (0.24) (0.25) (0.28) (0.29) (0.32)
Distributions from capital gains........ -- (2.07) (0.71) (1.93) (1.10) (0.12)
------- ------- ------- ------- -------- --------
Total dividends and distributions..... (0.12) (2.31) (0.96) (2.21) (1.39) (0.44)
------- ------- ------- ------- -------- --------
Net asset value at end of period........ $ 17.26 $ 16.47 $ 16.53 $ 15.53 $ 14.12 $ 12.99
======= ======= ======= ======= ======== ========
TOTAL RETURN:+.......................... 5.58%** 14.27% 12.82% 25.85% 19.58% 25.78%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $37,306 $37,994 $37,212 $34,213 $216,363 $169,841
Ratio to average net assets of:
Expenses.............................. 1.10%*** 1.12% 1.17% 1.01% 0.97% 1.00%
Net investment income................. 2.66%*** 1.38% 1.50% 1.77% 2.17% 2.66%
Portfolio turnover rate................. 23% 53% 39% 65% 58% 58%
</TABLE>
+ TOTAL RETURN DOES NOT CONSIDER THE EFFECT OF THE SALES LOAD FOR THOSE
PERIODS IN WHICH THE SALES LOAD WAS IN EFFECT.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE>
BNY HAMILTON LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS--93.7%
AEROSPACE AND DEFENSE--3.0%
700 United Technologies Corp......................... $ 41,212
----------
AUTOMOTIVE--5.8%
900 Ford Motor Co.................................... 38,700
900 TRW, Inc......................................... 39,037
117 Visteon Corp..................................... 1,419
----------
79,156
----------
BANKING AND FINANCE--7.9%
1,800 Banco Latinoamericano de Exportaciones, S.A...... 49,837
1,700 FleetBoston Financial Corp....................... 57,800
----------
107,637
----------
BUILDING MATERIALS--3.4%
1,300 Florida Rock Industries, Inc..................... 46,312
----------
BUSINESS EQUIPMENT AND SERVICES--2.4%
1,600 Xerox Corp....................................... 33,200
----------
COMPUTERS--MICRO--5.5%
600 Hewlett-Packard Co............................... 74,925
----------
CONSUMER GOODS AND SERVICES--3.1%
700 Eastman Kodak Co................................. 41,650
----------
ELECTRONIC EQUIPMENT AND COMPONENTS--0.8%
152 Agilent Technologies, Inc.*...................... 11,210
----------
FINANCIAL SERVICES--8.5%
1,000 Citigroup, Inc................................... 60,250
1,200 PNC Financial Services Group..................... 56,250
----------
116,500
----------
HEALTH CARE PRODUCTS AND
SERVICES--3.7%
500 Johnson & Johnson................................ 50,937
----------
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MACHINERY AND EQUIPMENT--3.7%
2,000 Grant Prideco, Inc.*............................. $ 50,000
----------
MANUFACTURING--10.0%
1,000 Dover Corp....................................... 40,563
1,400 Honeywell International, Inc..................... 47,163
600 Minnesota Mining and Manufacturing Co............ 49,500
----------
137,226
----------
OIL & GAS--13.4%
2,000 Conoco, Inc...................................... 44,000
700 Royal Dutch Petroleum Co., NY Shares............. 43,094
1,300 Tosco Corp....................................... 36,806
1,500 Weatherford International, Inc.*................. 59,719
----------
183,619
----------
PHARMACEUTICALS--4.7%
1,100 Bristol-Myers Squibb Co.......................... 64,075
----------
RETAIL--DISCOUNT STORES--3.6%
1,500 Costco Wholesale Corp.*.......................... 49,500
----------
TELECOMMUNICATIONS--7.0%
1,200 AT&T Corp........................................ 37,950
2,000 Motorola, Inc.................................... 58,125
----------
96,075
----------
TRANSPORTATION--7.2%
2,500 GulfMark Offshore, Inc.*......................... 61,250
1,000 Union Pacific Corp............................... 37,188
----------
98,438
----------
TOTAL COMMON STOCKS
(Cost $1,332,886)................................ 1,281,672
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE>
BNY HAMILTON LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ----------
<C> <S> <C>
FEDERAL HOME LOAN MORTGAGE CORP.--7.3%
$100,000 0.00%, 7/03/00
(Amortized cost $99,965)......................... $ 100,000
----------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
MONEY MARKET FUND--2.9%
39,564 ACM Institutional Reserves (Government
Portfolio), 6.33%(a)............................. 39,564
39 ACM Institutional Reserves (Prime Portfolio),
6.52%(a)......................................... 39
----------
TOTAL MONEY MARKET FUND
(Cost $39,603)................................... 39,603
----------
TOTAL INVESTMENTS
(Cost $1,472,454)(b)--103.9%..................... 1,421,275
Liabilities in excess of
other assets--(3.9%)............................. (53,755)
----------
NET ASSETS--100.0%............................... $1,367,520
==========
</TABLE>
* NON-INCOME PRODUCING SECURITY.
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED DEPRECIATION WAS $51,179 BASED
ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE GROSS
UNREALIZED APPRECIATION OF $55,790 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $106,969.
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE>
BNY HAMILTON LARGE CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Cost $1,472,454)........................................................... $ 1,421,275
Receivables:
Capital stock sold.......................................................... 84,954
Investments sold............................................................ 68,226
Due from Advisor............................................................ 17,458
Dividends................................................................... 1,899
Interest.................................................................... 155
-----------
TOTAL ASSETS................................................................ 1,593,967
-----------
LIABILITIES:
Due to custodian.............................................................. 53,261
Payables:
Investments purchased....................................................... 159,506
Services provided by the Bank of New York and Administrator................. 9,490
Accrued expenses and other liabilities........................................ 4,190
-----------
TOTAL LIABILITIES........................................................... 226,447
-----------
NET ASSETS:..................................................................... $ 1,367,520
===========
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 142
Capital surplus............................................................... 1,418,475
Undistributed net investment income........................................... 82
Net unrealized depreciation on investments.................................... (51,179)
-----------
NET ASSETS...................................................................... $ 1,367,520
===========
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 1,367,520
===========
Shares outstanding............................................................ 142,045
===========
Net asset value, offering price and repurchase price per share................ $ 9.63
===========
Institutional Shares authorized @ $.001 par value............................... 200,000,000
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 28, 2000* THROUGH JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $47)........................... $ 4,396
Interest...................................................................... 4,179
-------
TOTAL INCOME................................................................ 8,575
-------
EXPENSES:
Advisory...................................................................... 1,261
Administration................................................................ 421
Accounting services........................................................... 13,709
Transfer agent................................................................ 1,765
Custodian..................................................................... 1,191
Directors..................................................................... 957
Audit......................................................................... 756
Reports to shareholders....................................................... 544
Registration and filings...................................................... 192
Legal......................................................................... 13
Cash management............................................................... 13
Other......................................................................... 225
-------
TOTAL EXPENSES.............................................................. 21,047
Fees waived by the Bank of New York (Note 3).................................. (18,719)
Earnings credit adjustment (Note 3)........................................... (647)
-------
NET EXPENSES................................................................ 1,681
-------
NET INVESTMENT INCOME....................................................... 6,894
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Unrealized loss on investments during the period.............................. (51,179)
-------
Net decrease in net assets resulting from operations.......................... $(44,285)
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE>
BNY HAMILTON LARGE CAP VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
APRIL 28, 2000*
THROUGH JUNE 30, 2000
(UNAUDITED)
---------------------
<S> <C>
OPERATIONS:
Net investment income......................................................... $ 6,894
Increase in unrealized depreciation on investments during the period.......... (51,179)
----------
Net decrease in net assets resulting from operations........................ (44,285)
----------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income.......................................... (6,812)
----------
(6,812)
----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Institutional Shares........................ 1,411,954
Proceeds from shares issued on reinvestment of dividends: Institutional
Shares...................................................................... 6,663
----------
Net increase in net assets resulting from capital stock transactions........ 1,418,617
----------
INCREASE IN NET ASSETS.................................................... 1,367,520
NET ASSETS:
Beginning of period........................................................... --
----------
End of period (includes undistributed net investment income of $82 at June 30,
2000)....................................................................... $1,367,520
==========
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares............................................. 141,358
Shares issued on reinvestment of dividends: Institutional Shares.............. 687
----------
Net increase................................................................ 142,045
Shares outstanding, beginning of period....................................... --
----------
Shares outstanding, end of period............................................. 142,045
==========
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE>
BNY HAMILTON LARGE CAP VALUE FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
FOR THE PERIOD
APRIL 28, 2000*
THROUGH JUNE 30, 2000
(UNAUDITED)
--------------------------------------
<S> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $10.00
------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.05
Net realized and unrealized loss on
investments........................... (0.37)
------
Total from investment operations...... (0.32)
------
DIVIDENDS
Dividends from net investment income.... (0.05)
------
Net asset value at end of period........ $ 9.63
======
TOTAL RETURN:........................... (3.21)%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's
omitted).............................. $1,368
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.80%***
Expenses, prior to waiver from The
Bank of New York.................... 9.70%***
Net investment income net of waiver
from The Bank of New York........... 3.28%***
Portfolio turnover rate................. 0%
</TABLE>
* COMMENCMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
64
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--102.6%
ADVERTISING AND MARKETING
SERVICES--0.3%
100 Interpublic Group of Cos., Inc................... $ 4,300
50 Omnicom Group, Inc............................... 4,453
50 Young & Rubicam, Inc............................. 2,859
----------
11,612
----------
AEROSPACE AND DEFENSE--0.7%
50 B.F. Goodrich Co................................. 1,703
200 Boeing Co........................................ 8,362
50 General Dynamics Corp............................ 2,612
100 Lockheed Martin Corp............................. 2,481
50 Northrop Grumman Corp............................ 3,312
100 Raytheon Co...................................... 1,925
150 United Technologies Corp......................... 8,831
----------
29,226
----------
AIRLINES--0.2%
50 AMR Corp......................................... 1,322
50 Delta Air Lines, Inc............................. 2,528
150 Southwest Airlines Co............................ 2,841
50 USAirways Group, Inc.*........................... 1,950
----------
8,641
----------
ALUMINIUM, STEEL AND OTHER
METALS--0.4%
50 Alcan Aluminium Ltd.............................. 1,550
256 Alcoa, Inc....................................... 7,424
50 Allegheny Technologies, Inc...................... 900
50 Bethlehem Steel Corp.*........................... 178
50 Freeport-McMoRan Copper & Gold, Inc., Class B*... 462
50 Inco Ltd......................................... 769
50 Nucor Corp....................................... 1,659
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
50 Phelps Dodge Corp................................ $ 1,859
50 USX-U. S. Steel Group............................ 928
----------
15,729
----------
AUTOMOTIVE--0.9%
50 AutoZone, Inc.*.................................. 1,100
50 Dana Corp........................................ 1,059
150 Delphi Automotive Systems Corp................... 2,184
300 Ford Motor Co.................................... 12,900
150 General Motors Corp.............................. 8,709
50 Harley-Davidson, Inc............................. 1,925
50 Johnson Controls, Inc............................ 2,566
50 Navistar International Corp...................... 1,553
50 PACCAR, Inc...................................... 1,984
50 TRW, Inc......................................... 2,169
52 Visteon Corp.*................................... 630
----------
36,779
----------
BANKING AND FINANCE--3.5%
100 AmSouth Bancorp.................................. 1,575
550 Bank of America Corp............................. 23,650
200 Bank of New York Co., Inc........................ 9,300
350 Bank One Corp.................................... 9,297
100 BB&T Corp........................................ 2,387
50 Charter One Financial, Inc.*..................... 1,150
50 Comerica, Inc.................................... 2,244
100 Fifth Third Bancorp.............................. 6,325
300 First Union Corp................................. 7,444
300 Firstar Corp..................................... 6,319
250 FleetBoston Financial Corp....................... 8,500
50 Golden West Financial Corp....................... 2,041
50 Huntington Bancshares, Inc....................... 791
100 KeyCorp.......................................... 1,762
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
65
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
150 Mellon Financial Corp............................ $ 5,466
150 National City Corp............................... 2,559
50 Northern Trust Corp.............................. 3,253
53 Old Kent Financial Corp.......................... 1,404
50 Regions Financial Corp........................... 994
50 SouthTrust Corp.................................. 1,131
50 State Street Corp................................ 5,303
50 Summit Bancorp................................... 1,231
100 SunTrust Banks, Inc.............................. 4,569
200 U.S. Bancorp..................................... 3,850
50 Union Planters Corp.............................. 1,397
50 Wachovia Corp.................................... 2,712
150 Washington Mutual, Inc........................... 4,331
500 Wells Fargo & Co................................. 19,375
----------
140,360
----------
BEVERAGES, FOOD AND TOBACCO--3.9%
50 Adolph Coors Co., Class B........................ 3,025
150 Anheuser-Busch Cos., Inc......................... 11,203
150 Archer-Daniels-Midland Co........................ 1,472
100 Bestfoods........................................ 6,925
50 Brown-Forman Corp., Class B...................... 2,687
100 Campbell Soup Co................................. 2,912
800 Coca-Cola Co..................................... 45,950
100 Coca-Cola Enterprises, Inc....................... 1,631
150 ConAgra, Inc..................................... 2,859
50 General Mills, Inc............................... 1,912
100 H.J. Heinz Co.................................... 4,375
50 Hershey Foods Corp............................... 2,425
100 Kellogg Co....................................... 2,975
400 McDonald's Corp.................................. 13,175
100 Nabisco Group Holdings Corp...................... 2,594
450 PepsiCo, Inc..................................... 19,997
700 Philip Morris Cos., Inc.......................... 18,594
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
50 Quaker Oats Co................................... $ 3,756
100 Ralston-Ralston Purina Group..................... 1,994
50 SUPERVALU, Inc................................... 953
50 UST, Inc......................................... 734
50 Wm. Wrigley Jr. Co............................... 4,009
----------
156,157
----------
BIOSCIENCES--0.7%
350 Amgen, Inc.*..................................... 24,587
50 Biogen, Inc.*.................................... 3,225
----------
27,812
----------
BUILDING AND BUILDING PRODUCTS--1.2%
50 Armstrong Holdings, Inc.......................... 766
50 Ecolab, Inc...................................... 1,953
50 Georgia-Pacific Group............................ 1,312
750 Home Depot, Inc.................................. 37,453
50 Louisiana-Pacific Corp........................... 544
100 Masco Corp....................................... 1,806
50 Owens Corning.................................... 462
50 Sherwin-Williams Co.............................. 1,059
50 Vulcan Materials Co.............................. 2,134
----------
47,489
----------
BUSINESS EQUIPMENT AND
SERVICES--0.3%
50 Convergys Corp.*................................. 2,594
0 IKON Office Solutions, Inc....................... 0
50 Lexmark International Group, Inc., Class A*...... 3,362
50 Pitney Bowes, Inc................................ 2,000
200 Xerox Corp....................................... 4,150
----------
12,106
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
66
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CHEMICALS--0.9%
50 Air Products and Chemicals, Inc.................. $ 1,541
50 Ashland, Inc..................................... 1,753
200 Dow Chemical Co.................................. 6,037
250 duPont (E.I.) de Nemours & Co.................... 10,937
50 Eastman Chemical Co.............................. 2,387
50 Great Lakes Chemical Corp........................ 1,575
50 Hercules, Inc.................................... 703
50 PPG Industries, Inc.............................. 2,216
50 Praxair, Inc..................................... 1,872
50 Rohm and Haas Co................................. 1,725
50 Sigma-Aldrich Corp............................... 1,462
50 Union Carbide Corp............................... 2,475
50 W.R. Grace & Co.*................................ 606
----------
35,289
----------
COMMUNICATIONS, MEDIA AND ENTERTAINMENT--2.7%
100 Clear Channel Communications, Inc.*.............. 7,500
250 Comcast Corp., Class A*.......................... 10,125
100 Gannett Co., Inc................................. 5,981
50 McGraw-Hill Cos., Inc............................ 2,700
50 Meredith Corp.................................... 1,687
150 Seagram Co. Ltd.................................. 8,700
450 Time Warner, Inc................................. 34,200
520 Viacom, Inc., Class B*........................... 35,457
----------
106,350
----------
COMPUTER SERVICES--2.3%
750 America Online, Inc.*............................ 39,562
50 Ceridian Corp.................................... 1,203
50 Computer Sciences Corp.*......................... 3,734
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
100 Compuware Corp.*................................. $ 1,037
150 Electronic Data Systems Corp..................... 6,187
100 Network Appliance, Inc.*......................... 8,050
50 Sapient Corp.*................................... 5,347
100 Unisys Corp.*.................................... 1,456
200 Yahoo!, Inc.*.................................... 24,775
----------
91,351
----------
COMPUTERS--MICRO--5.5%
100 Apple Computer, Inc.*............................ 5,237
550 Compaq Computer Corp............................. 14,059
750 Dell Computer Corp.*............................. 36,984
100 Gateway, Inc.*................................... 5,675
350 Hewlett-Packard Co............................... 43,706
600 International Business Machines Corp. (IBM)...... 65,737
50 Seagate Technology, Inc.*........................ 2,750
500 Sun Microsystems, Inc.*.......................... 45,469
----------
219,617
----------
COMPUTERS--SOFTWARE AND PERIPHERALS--10.2%
50 Adobe Systems, Inc............................... 6,500
50 Autodesk, Inc.................................... 1,734
50 BMC Software, Inc.*.............................. 1,824
2,200 Cisco Systems, Inc.*............................. 139,837
50 Citrix Systems, Inc.*............................ 947
200 Computer Associates International, Inc........... 10,237
700 EMC Corp.*....................................... 53,856
100 Mercury Interactive Corp.*....................... 9,675
1,700 Microsoft Corp.*................................. 136,000
50 NCR Corp.*....................................... 1,947
50 Parametric Technology Corp.*..................... 550
50 PeopleSoft, Inc.*................................ 837
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
67
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
100 Siebel Systems, Inc.*............................ $ 16,356
150 VERITAS Software Corp.*.......................... 16,952
100 Xilinx, Inc.*.................................... 8,256
----------
405,508
----------
CONGLOMERATES--4.3%
3,150 General Electric Co.............................. 166,950
50 Textron, Inc..................................... 2,716
----------
169,666
----------
CONSUMER GOODS AND SERVICES--0.7%
50 American Greetings Corp., Class A................ 950
50 Avery Dennison Corp.............................. 3,356
50 Brunswick Corp................................... 828
200 Cendant Corp.*................................... 2,800
100 Eastman Kodak Co................................. 5,950
50 Fort James Corp.................................. 1,156
50 Fortune Brands, Inc.............................. 1,153
50 Hasbro, Inc...................................... 753
100 Mattel, Inc...................................... 1,319
50 Polaroid Corp.................................... 903
250 Sara Lee Corp.................................... 4,828
50 Tupperware Corp.................................. 1,100
100 Unilever NY ADR.................................. 4,300
----------
29,396
----------
CONTAINERS AND PACKAGING--0.2%
50 Ball Corp........................................ 1,609
50 Bemis Co., Inc................................... 1,681
50 Crown Cork & Seal Co., Inc....................... 750
50 Owens-Illinois, Inc.*............................ 584
50 Pactiv Corp.*.................................... 394
50 Sealed Air Corp.*................................ 2,619
----------
7,637
----------
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
DATA PROCESSING SYSTEMS--0.5%
200 Automatic Data Processing, Inc................... $ 10,712
100 First Data Corp.................................. 4,962
75 Paychex, Inc..................................... 3,150
----------
18,824
----------
ELECTRONIC EQUIPMENT AND COMPONENTS--8.0%
50 Advanced Micro Devices, Inc.*.................... 3,862
133 Agilent Technologies, Inc.*...................... 9,809
50 Altera Corp.*.................................... 5,097
50 American Power Conversion Corp.*................. 2,041
100 Analog Devices, Inc.*............................ 7,600
250 Applied Materials, Inc.*......................... 22,656
50 Conexant Systems, Inc.*.......................... 2,431
50 Cooper Industries, Inc........................... 1,628
150 Emerson Electric Co.............................. 9,056
1,100 Intel Corp....................................... 147,056
50 KLA-Tencor Corp.*................................ 2,928
100 Linear Technology Corp........................... 6,394
100 LSI Logic Corp.*................................. 5,412
100 Maxim Integrated Products, Inc.*................. 6,794
200 Micron Technology, Inc........................... 17,612
50 Molex, Inc....................................... 2,406
50 National Semiconductor Corp.*.................... 2,838
50 Novellus Systems, Inc.*.......................... 2,828
50 Rockwell International Corp...................... 1,575
100 Sanmina Corp.*................................... 8,550
150 Solectron Corp.*................................. 6,281
50 Tektronix, Inc.*................................. 3,700
50 Teradyne, Inc.*.................................. 3,675
550 Texas Instruments, Inc........................... 37,778
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
68
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
50 Thomas & Betts Corp.............................. $ 956
----------
320,963
----------
FINANCIAL SERVICES--6.8%
450 American Express Co.............................. 23,456
200 Associates First Capital Corp.................... 4,463
50 Bear Stearns Cos., Inc........................... 2,081
50 Capital One Financial Corp....................... 2,231
450 Charles Schwab Corp. (The)....................... 15,131
375 Chase Manhattan Corp............................. 17,273
1,100 Citigroup, Inc................................... 66,275
50 Countrywide Credit Industries, Inc............... 1,516
50 Deluxe Corp...................................... 1,178
50 Dun & Bradstreet Corp............................ 1,431
50 Equifax, Inc..................................... 1,313
300 Fannie Mae....................................... 15,656
50 Franklin Resources, Inc.......................... 1,519
200 Freddie Mac...................................... 8,100
50 H&R Block, Inc................................... 1,619
150 Household International, Inc..................... 6,234
50 J.P. Morgan & Co................................. 5,506
50 Lehman Brothers Holdings, Inc.................... 4,728
100 Marsh & McLennan Cos., Inc....................... 10,444
50 MBIA, Inc........................................ 2,409
250 MBNA Corp........................................ 6,781
150 Merrill Lynch & Co., Inc......................... 17,250
50 MGIC Investment Corp............................. 2,275
350 Morgan Stanley Dean Witter & Co.................. 29,138
50 Paine Webber Group, Inc.......................... 2,275
100 PNC Financial Services Group..................... 4,688
50 Providian Financial Corp......................... 4,500
50 SLM Holding Corp................................. 1,872
50 Standard and Poor's (ADR)........................ 7,264
50 Synovus Financial Corp........................... 881
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
50 T. Rowe Price Associates, Inc.................... $ 2,125
----------
271,612
----------
FOREST AND PAPER PRODUCTS--0.4%
50 Boise Cascade Corp............................... 1,294
135 International Paper Co........................... 4,025
50 Mead Corp........................................ 1,263
50 Potlatch Corp.................................... 1,656
50 Temple-Inland, Inc............................... 2,100
50 Westvaco Corp.................................... 1,241
50 Weyerhaeuser Co.................................. 2,150
50 Willamette Industries, Inc....................... 1,363
----------
15,092
----------
HEALTH CARE PRODUCTS AND
SERVICES--4.4%
500 Abbott Laboratories.............................. 22,281
50 Allergan, Inc.................................... 3,725
400 American Home Products Corp...................... 23,500
50 Bausch & Lomb, Inc............................... 3,869
100 Baxter International, Inc........................ 7,031
50 Becton, Dickinson & Co........................... 1,434
50 Biomet, Inc...................................... 1,922
100 Boston Scientific Corp.*......................... 2,194
50 C. R. Bard, Inc.................................. 2,406
100 Cardinal Health, Inc............................. 7,400
100 Guidant Corp.*................................... 4,950
150 HCA-The Healthcare Corp.......................... 4,556
100 HEALTHSOUTH Corp.*............................... 719
50 Humana, Inc.*.................................... 244
50 IMS Health, Inc.................................. 900
450 Johnson & Johnson................................ 45,844
50 Mallinckrodt, Inc................................ 2,172
50 Manor Care, Inc.*................................ 350
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
69
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
400 Medtronic, Inc................................... $ 19,925
50 Mckesson HBOC, Inc............................... 1,047
50 PE Corp-PE Biosystems Group...................... 3,294
50 Quintiles Transnational Corp.*................... 706
50 Shared Medical Systems Corp...................... 3,647
50 St. Jude Medical, Inc............................ 2,294
100 Tenet Healthcare Corp.*.......................... 2,700
50 UnitedHealth Group, Inc.......................... 4,288
50 Wellpoint Health Networks, Inc.*................. 3,622
----------
177,020
----------
HOMEBUILDERS--0.1%
50 Centex Corp...................................... 1,175
50 Kaufman and Broad Home Corp...................... 991
50 Pulte Corp....................................... 1,081
----------
3,247
----------
HOTELS AND GAMING--0.1%
50 Harrah's Entertainment, Inc.*.................... 1,047
100 Hilton Hotels Corp............................... 938
50 Marriott International, Inc., Class A............ 1,803
----------
3,788
----------
HOUSEHOLD AND PERSONAL CARE PRODUCTS--1.8%
50 Alberto-Culver Co., Class B...................... 1,528
50 Avon Products, Inc............................... 2,225
50 Clorox Co........................................ 2,241
200 Colgate-Palmolive Co............................. 11,975
300 Gillette Co...................................... 10,481
50 International Flavors & Fragrances, Inc.......... 1,509
200 Kimberly-Clark Corp.............................. 11,475
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
50 Leggett & Platt, Inc............................. $ 825
50 Maytag Corp...................................... 1,844
400 Procter & Gamble Co.............................. 22,900
50 Springs Industries, Inc., Class A................ 1,600
50 Whirlpool Corp................................... 2,331
----------
70,934
----------
INSURANCE--2.6%
50 Aetna, Inc....................................... 3,209
50 AFLAC, Inc....................................... 2,297
200 Allstate Corp.................................... 4,450
100 American General Corp............................ 6,100
500 American International Group, Inc................ 58,750
50 Aon Corp......................................... 1,553
50 Chubb Corp....................................... 3,075
50 CIGNA Corp....................................... 4,675
50 Cincinnati Financial Corp........................ 1,572
100 Conseco, Inc..................................... 975
50 Hartford Financial Services Group, Inc........... 2,797
50 Jefferson-Pilot Corp............................. 2,822
50 Lincoln National Corp............................ 1,806
50 Loews Corp....................................... 3,000
50 Progressive Corp................................. 3,700
50 SAFECO Corp...................................... 994
50 St. Paul Cos., Inc............................... 1,706
50 Torchmark Corp................................... 1,234
50 UnumProvident Corp............................... 1,003
----------
105,718
----------
MACHINERY AND ENGINEERING--0.4%
50 Briggs & Stratton Corp........................... 1,713
100 Caterpillar, Inc................................. 3,388
50 Cummins Engine Co., Inc.......................... 1,363
50 Deere & Co....................................... 1,850
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
70
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
50 Eaton Corp....................................... $ 3,350
50 Fluor Corp....................................... 1,581
50 Ingersoll-Rand Co................................ 2,013
----------
15,258
----------
MANUFACTURING--1.7%
50 Crane Co......................................... 1,216
50 Danaher Corp..................................... 2,472
50 Dover Corp....................................... 2,028
50 FMC Corp......................................... 2,900
250 Honeywell International, Inc..................... 8,422
100 Illinois Tool Works, Inc......................... 5,700
50 ITT Industries, Inc.............................. 1,519
150 Minnesota Mining and Manufacturing Co............ 12,375
50 National Service Industries, Inc................. 975
50 Newell Rubbermaid, Inc........................... 1,288
50 Pall Corp........................................ 925
50 Parker-Hannifin Corp............................. 1,713
50 Timken Co........................................ 931
550 Tyco International Ltd........................... 26,056
50 Worthington Industries, Inc...................... 525
----------
69,045
----------
MINING--0.1%
100 Barrick Gold Corp................................ 1,819
50 Homestake Mining Co.............................. 344
50 Newmont Mining Corp.............................. 1,081
100 Placer Dome, Inc................................. 956
----------
4,200
----------
NETWORKING PRODUCTS--2.2%
100 3Com Corp.*...................................... 5,763
50 Adaptec, Inc.*................................... 1,138
50 Cabletron Systems, Inc.*......................... 1,263
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
100 Novell, Inc.*.................................... $ 925
950 Oracle Corp.*.................................... 79,859
----------
88,948
----------
OIL & GAS--6.0%
50 Amerada Hess Corp................................ 3,088
50 Anadarko Petroleum Corp.......................... 2,466
50 Apache Corp...................................... 2,941
100 Baker Hughes, Inc................................ 3,200
50 Burlington Resources, Inc........................ 1,913
200 Chevron Corp..................................... 16,963
50 Coastal Corp..................................... 3,044
50 Columbia Energy Group............................ 3,281
200 Conoco, Inc., Class B............................ 4,913
50 Eastern Enterprises.............................. 3,150
50 El Paso Energy Corp.............................. 2,547
50 Engelhard Corp................................... 853
1,150 Exxon Mobil Corp................................. 90,275
150 Halliburton Co................................... 7,078
50 Kerr-McGee Corp.................................. 2,947
50 McDermott International, Inc..................... 441
50 NICOR, Inc....................................... 1,631
100 Occidental Petroleum Corp........................ 2,106
50 ONEOK, Inc....................................... 1,297
50 Peoples Energy Corp.............................. 1,619
50 Phillips Petroleum Co............................ 2,534
50 Rowan Cos., Inc.*................................ 1,519
700 Royal Dutch Petroleum Co......................... 43,094
200 Schlumberger Ltd................................. 14,925
50 Sempra Energy.................................... 850
50 Sunoco, Inc...................................... 1,472
150 Texaco, Inc...................................... 7,988
50 Tosco Corp....................................... 1,416
50 Transocean Sedco Forex, Inc...................... 2,672
50 Union Pacific Resources Group, Inc............... 1,100
50 Unocal Corp...................................... 1,656
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
71
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
100 USX-Marathon Group............................... $ 2,506
50 Williams Cos., Inc............................... 2,084
----------
239,569
----------
PHARMACEUTICALS--7.0%
50 ALZA Corp.*...................................... 2,956
650 Bristol-Myers Squibb Co.......................... 37,863
350 Eli Lilly & Co................................... 34,956
50 MedImmune, Inc.*................................. 3,700
750 Merck & Co., Inc................................. 57,469
1,975 Pfizer, Inc...................................... 94,800
400 Pharmacia Corp................................... 20,675
450 Schering-Plough Corp............................. 22,725
50 Watson Pharmaceuticals, Inc.*.................... 2,688
----------
277,832
----------
PUBLISHING--0.4%
50 Dow Jones & Company, Inc......................... 3,663
50 Harcourt General, Inc............................ 2,719
50 Knight-Ridder, Inc............................... 2,659
50 New York Times Co., Class A...................... 1,975
50 R. R. Donnelley & Sons Co........................ 1,128
75 Tribune Co....................................... 2,625
----------
14,769
----------
RESORTS & ENTERTAINMENT--0.6%
650 Walt Disney Co. (The)............................ 25,228
----------
RETAIL--APPAREL AND SHOES--0.5%
250 GAP, Inc......................................... 7,813
100 Limited, Inc..................................... 2,163
50 Liz Claiborne, Inc............................... 1,763
50 NIKE, Inc., Class B.............................. 1,991
50 Nordstrom, Inc................................... 1,206
50 Reebok International Ltd.*....................... 797
50 Russell Corp..................................... 1,000
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
50 V.F. Corp........................................ $ 1,191
----------
17,924
----------
RETAIL AND WHOLESALE
DISTRIBUTION--0.2%
50 Genuine Parts Co................................. 1,000
100 SYSCO Corp....................................... 4,213
50 W.W. Grainger, Inc............................... 1,541
----------
6,754
----------
RETAIL--DEPARTMENT STORES--0.6%
50 Dillard's, Inc., Class A......................... 613
50 Federated Department Stores, Inc.*............... 1,688
50 J. C. Penny Co., Inc............................. 922
100 Kohl's Corp.*.................................... 5,563
100 May Department Stores Co......................... 2,400
100 Sears, Roebuck & Co.............................. 3,263
150 Target Corp...................................... 8,700
----------
23,149
----------
RETAIL--DISCOUNT STORES--2.3%
50 Consolidated Stores Corp.*....................... 600
100 Costco Wholesale Corp.*.......................... 3,300
62 Dollar General Corp.............................. 1,209
150 Kmart Corp.*..................................... 1,022
50 TJX Cos., Inc.................................... 938
1,450 Wal-Mart Stores, Inc............................. 83,556
----------
90,625
----------
RETAIL--FOOD STORES--0.4%
100 Albertson's, Inc................................. 3,325
50 Great Atlantic & Pacific Tea Co., Inc............ 831
250 Kroger Co........................................ 5,516
150 Safeway, Inc.*................................... 6,769
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
72
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
50 Winn-Dixie Stores, Inc........................... $ 716
----------
17,157
----------
RETAIL--RESTAURANTS--0.1%
50 Darden Restaurants, Inc.......................... 813
50 Starbucks Corp.*................................. 1,909
50 Tricon Global Restaurants, Inc.*................. 1,413
50 Wendy's International, Inc....................... 891
----------
5,026
----------
RETAIL--SPECIALTY STORES--1.0%
50 Bed Bath & Beyond, Inc.*......................... 1,813
50 Best Buy Co., Inc.*.............................. 3,163
50 Circuit City Stores-Circuit City Group........... 1,659
100 CVS Corp......................................... 4,000
50 Longs Drug Stores Corp........................... 1,088
100 Lowe's Cos., Inc................................. 4,106
100 Office Depot, Inc.*.............................. 625
50 RadioShack Corp.................................. 2,369
50 Rite Aid Corp.*.................................. 328
150 Staples, Inc.*................................... 2,306
100 Tiffany & Co..................................... 6,750
50 Toys "R" Us, Inc.*............................... 728
300 Walgreen Co...................................... 9,656
----------
38,591
----------
TELECOMMUNICATIONS--12.8%
100 ADC Telecommunications, Inc.*.................... 8,388
100 ALLTEL Corp...................................... 6,194
50 Andrew Corp.*.................................... 1,678
1,190 AT&T Corp........................................ 37,634
500 Bell Atlantic Corp............................... 25,406
600 BellSouth Corp................................... 25,575
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
100 Broadcom Corp.*.................................. $ 21,894
50 CenturyTel, Inc.................................. 1,438
50 Comverse Technology, Inc.*....................... 4,650
100 Corning, Inc..................................... 26,988
250 Global Crossing Ltd.*............................ 6,578
300 GTE Corp......................................... 18,675
1,050 Lucent Technologies, Inc......................... 62,213
700 Motorola, Inc.................................... 20,344
250 Nextel Communications, Inc.*..................... 15,297
950 Nortel Networks Corp............................. 64,838
250 QUALCOMM, Inc.*.................................. 15,000
1,100 SBC Communications, Inc.......................... 47,575
50 Scientific-Atlanta, Inc.......................... 3,725
300 Sprint Corp...................................... 15,300
300 Sprint Corp. (PCS Group)*........................ 17,850
150 Tellabs, Inc.*................................... 10,266
150 U S West, Inc.................................... 12,863
900 WorldCom, Inc.*.................................. 41,288
----------
511,657
----------
TIRE AND RUBBER--0.0%
50 Cooper Tire & Rubber Co.......................... 556
50 Goodyear Tire & Rubber Co........................ 1,000
----------
1,556
----------
TOOLS & INSTRUMENTS--0.3%
50 Black & Decker Corp.............................. 1,966
50 Millipore Corp................................... 3,769
50 PerkinElmer, Inc................................. 3,306
50 Snap-on, Inc..................................... 1,331
50 Stanley Works.................................... 1,188
50 Thermo Electron Corp.*........................... 1,053
----------
12,613
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
73
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TRANSPORTATION--0.4%
100 Burlington Northern Santa Fe Corp................ $ 2,294
50 CSX Corp......................................... 1,059
50 FedEx Corp.*..................................... 1,900
50 Kansas City Southern Industries, Inc............. 4,434
100 Norfolk Southern Corp............................ 1,488
50 Ryder System, Inc................................ 947
50 Union Pacific Corp............................... 1,859
----------
13,981
----------
TRAVEL SERVICES--0.1%
150 Carnival Corp.................................... 2,925
50 Sabre Holdings Corp.*............................ 1,425
----------
4,350
----------
UTILITIES--GAS & ELECTRIC--1.8%
100 AES Corp......................................... 4,563
50 Ameren Corp...................................... 1,688
80 American Electric Power Co., Inc................. 2,370
50 Cinergy Corp..................................... 1,272
50 CMS Energy Corp.................................. 1,106
50 Consolidated Edison, Inc......................... 1,481
50 Constellation Energy Group....................... 1,628
50 CP&L Energy, Inc................................. 1,597
50 Dominion Resources, Inc.......................... 2,144
50 DTE Energy Co.................................... 1,528
100 Duke Energy Corp................................. 5,638
100 Edison International............................. 2,050
250 Enron Corp....................................... 16,125
50 Entergy Corp..................................... 1,359
50 FirstEnergy Corp................................. 1,169
50 Florida Progress Corp............................ 2,344
50 FPL Group, Inc................................... 2,475
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
50 GPU, Inc......................................... $ 1,353
50 New Century Energies, Inc........................ 1,500
50 Niagara Mohawk Holdings, Inc..................... 697
50 Northern States Power Co......................... 1,009
50 PECO Energy Co................................... 2,016
100 PG&E Corp........................................ 2,463
50 Pinnacle West Capital Corp....................... 1,694
50 PPL Corp......................................... 1,097
50 Public Service Enterprise Group, Inc............. 1,731
50 Reliant Energy, Inc.............................. 1,478
200 Southern Co...................................... 4,663
50 TXU Corp......................................... 1,475
50 Unicom Corp...................................... 1,934
----------
73,647
----------
WASTE MANAGEMENT--0.1%
50 Allied Waste Industries, Inc.*................... 500
200 Waste Management, Inc............................ 3,800
----------
4,300
----------
TOTAL COMMON STOCKS
(Cost $4,074,731)................................ 4,094,102
----------
TOTAL INVESTMENTS
(Cost $4,074,731)(a)--102.6%..................... 4,094,102
Liabilities in excess of
other assets--(2.6%)............................. (103,277)
----------
NET ASSETS--100.0%............................... $3,990,825
==========
</TABLE>
* NON-INCOME PRODUCING SECURITY.
(a) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED APPRECIATION WAS $19,371 BASED
ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE GROSS
UNREALIZED APPRECIATION OF $227,746 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $208,375.
SEE NOTES TO FINANCIAL STATEMENTS.
74
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Cost $4,074,731)................... $ 4,094,102
Cash.................................. 55
Receivables:
Investments sold.................... 64,670
Due from Advisor.................... 17,651
Dividends........................... 3,643
Interest............................ 112
--------------
TOTAL ASSETS........................ 4,180,233
--------------
LIABILITIES:
Payables:
Capital stock repurchased........... 146,713
Investments purchased............... 28,244
Services provided by the Bank of New
York and Administrator............ 9,998
Accrued expenses and other
liabilities......................... 4,453
--------------
TOTAL LIABILITIES................... 189,408
--------------
NET ASSETS:............................. $ 3,990,825
==============
SOURCES OF NET ASSETS:
Capital stock @ par................... $ 398
Capital surplus....................... 3,983,464
Undistributed net investment income... 601
Accumulated net realized loss on
investments......................... (13,009)
Net unrealized appreciation on
investments......................... 19,371
--------------
NET ASSETS.............................. $ 3,990,825
==============
INSTITUTIONAL SHARES:
Net assets............................ $ 3,990,825
==============
Shares outstanding.................... 398,346
==============
Net asset value, offering price and
repurchase price per share.......... $ 10.02
==============
Institutional Shares authorized @ $.001
par value............................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 28, 2000*
THROUGH JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding
tax of $110)........................ $ 8,793
Interest.............................. 3,215
--------------
TOTAL INCOME........................ 12,008
--------------
EXPENSES:
Accounting services................... 13,709
Advisory.............................. 1,783
Transfer agent........................ 1,765
Administration........................ 1,435
Directors............................. 957
Audit................................. 756
Custodian............................. 550
Reports to shareholders............... 544
Registration and filings.............. 192
Legal................................. 13
Cash management....................... 13
Other................................. 225
--------------
TOTAL EXPENSES...................... 21,942
Fees waived by the Bank of New York
(Note 3)............................ (19,434)
Earnings credit adjustment (Note 3)... (6)
--------------
NET EXPENSES........................ 2,502
--------------
NET INVESTMENT INCOME............... 9,506
--------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized loss on:
Investments......................... (13,009)
Increase in unrealized appreciation
on investments during the
period............................ 19,371
--------------
Net realized and unrealized gain on
investments....................... 6,362
--------------
Net increase in net assets resulting
from operations................... $ 15,868
==============
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
75
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
APRIL 28, 2000*
THROUGH JUNE 30, 2000
(UNAUDITED)
---------------------
<S> <C>
OPERATIONS:
Net investment income................. $ 9,506
Net realized loss on investments...... (13,009)
Increase in unrealized appreciation on
investments during the period....... 19,371
----------
Net increase in net assets resulting
from operations.................... 15,868
----------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional
Shares... (8,905)
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional
Shares... 4,372,738
Proceeds from shares issued on
reinvestment of dividends:
Institutional Shares................ 8,553
Cost of capital stock repurchased:
Institutional
Shares... (397,429)
----------
Net increase in net assets resulting
from capital stock transactions..... 3,983,862
----------
INCREASE IN NET ASSETS.............. 3,990,825
NET ASSETS:
Beginning of period................... --
----------
End of period (includes undistributed
net investment income of $601 at
June 30, 2000)...................... $3,990,825
==========
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares..... 437,866
Shares issued on reinvestment of
dividends: Institutional Shares..... 843
Shares repurchased:
Institutional
Shares............. (40,363)
----------
Net increase........................ 398,346
Shares outstanding, beginning of
period.............................. --
----------
Shares outstanding, end of period..... 398,346
==========
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
76
<PAGE>
BNY HAMILTON S&P 500 INDEX FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
FOR THE PERIOD
APRIL 28, 2000*
THROUGH JUNE 30, 2000
(UNAUDITED)
---------------------
<S> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $10.00
------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.03
Net realized and unrealized gain on
investments........................... 0.01
------
Total from investment operations...... 0.04
------
DIVIDENDS
Dividends from net investment income.... (0.02)
------
Net asset value at end of period........ $10.02
======
TOTAL RETURN:........................... 0.41%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's
omitted).............................. $3,991
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.35%***
Expenses, prior to waiver from The
Bank of New York.................... 3.07%***
Net investment income net of waiver
from The Bank of New York........... 1.33%***
Portfolio turnover rate................. 19%
</TABLE>
* COMMENCMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
77
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS--41.0%
FEDERAL HOME LOAN MORTGAGE
CORP.--13.3%
$ 275,000 Series 1176-H,
8.00%, 12/15/06.................................. $ 279,583
409,846 Series 1338-J,
7.00%, 2/15/07................................... 409,498
46,393 Series 1663-D,
7.00%, 8/15/11................................... 45,905
1,662,000 Series 1407-PK,
7.00%, 8/15/21................................... 1,608,600
2,100,000 Series 1494-PJ,
6.85%, 1/15/22................................... 2,004,576
453,000 Series 1588-TC,
6.50%, 9/15/23................................... 434,813
1,208,000 Series 1602-H,
6.50%, 10/15/23.................................. 1,103,161
2,494,000 Series 1608-O,
6.50%, 11/15/23.................................. 2,300,281
541,000 Series 1621-M,
6.50%, 11/15/23.................................. 522,487
345,000 Series 1633-C,
6.50%, 12/15/23.................................. 313,963
1,720,000 Series 1669-L,
6.50%, 2/15/24................................... 1,634,482
-----------
10,657,349
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
FEDERAL NATIONAL MORTGAGE
ASSOC.--26.8%
$ 563,204 Series 1994-86PE,
6.00%, 9/25/06................................... $ 559,569
501,916 Series 1988-15A,
9.00%, 6/25/18................................... 519,124
357,196 Series 1992-129J,
4.00%, 7/25/20................................... 337,271
1,040,000 Series 1992-214PK,
7.00%, 9/25/20................................... 1,016,631
4,028,754 Series G92-15Z,
7.00%, 1/25/22................................... 3,829,878
285,000 Series G93-34PH,
6.35%, 2/25/22................................... 269,265
800,000 Series 1993-96PJ,
7.00%, 8/25/22................................... 777,784
984,000 Series 1617-C,
6.50%, 2/15/23................................... 939,550
2,497,271 Series 1993-141Z,
7.00%, 8/25/23................................... 2,325,707
3,002,000 Series 1993-149M,
7.00%, 8/25/23................................... 2,840,678
1,883,000 Series 1993-252N,
6.50%, 8/25/23................................... 1,792,446
3,110,000 Series 1993-178PK,
6.50%, 9/25/23................................... 2,801,986
1,618,000 Series 1993-203B,
6.50%, 10/25/23.................................. 1,549,720
907,000 Series 1993-203PL,
6.50%, 10/25/23.................................. 852,299
1,195,000 Series 1993-225C-UB,
6.50%, 12/25/23.................................. 1,144,870
-----------
21,556,778
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
78
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--0.9%
$ 800,000 Series 1999-13PC,
6.00%, 3/20/28................................... $ 728,304
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $34,082,149)............................... 32,942,431
-----------
</TABLE>
<TABLE>
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS--39.6%
FEDERAL HOME LOAN BANK--0.8%
625,000 9.00%, 3/15/06................................... 679,512
-----------
FEDERAL HOME LOAN MORTGAGE
CORP.--7.5%
2,000,000 0.00%, 7/03/00................................... 2,000,000
4,350,000 5.75%, 4/15/08................................... 3,988,541
-----------
5,988,541
-----------
FEDERAL NATIONAL MORTGAGE
ASSOC.--5.8%
3,450,000 5.125%, 2/13/04.................................. 3,243,876
1,500,000 5.75%, 6/15/05................................... 1,421,376
-----------
4,665,252
-----------
PRINCIPAL
AMOUNT VALUE
---------- -----------
UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS (CONTINUED)
TENNESSEE VALLEY AUTHORITY--6.7%
$ 575,000 6.00%, 11/01/00.................................. $ 573,013
5,000,000 6.125%, 7/15/03.................................. 4,837,715
-----------
5,410,728
-----------
UNITED STATES TREASURY BONDS--1.2%
850,000 7.25%, 5/15/16................................... 935,531
-----------
UNITED STATES TREASURY NOTES--17.6%
2,700,000 5.75%, 8/15/03................................... 2,653,595
3,000,000 5.875%, 11/15/05................................. 2,948,439
3,250,000 6.875%, 5/15/06.................................. 3,344,455
5,075,000 6.625%, 5/15/07.................................. 5,181,260
-----------
14,127,749
-----------
TOTAL UNITED STATES GOVERNMENT AGENCIES &
OBLIGATIONS
(Cost $33,610,226)............................... 31,807,313
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES--14.2%
FEDERAL HOME LOAN MORTGAGE
CORP.--6.0%
$ 51,372 Pool #218711,
8.00%, 10/01/02.................................. $ 51,802
75,642 Pool #251836,
8.50%, 5/01/04................................... 76,527
201,179 Pool #182217,
8.00%, 12/01/04.................................. 201,808
35,526 Pool #502185,
8.50%, 7/01/05................................... 35,929
1,549,642 Gold Pool #E49415,
6.50%, 7/01/08................................... 1,510,551
67,473 Pool #184275,
8.25%, 9/01/08................................... 68,689
12,311 Pool #160062,
9.50%, 10/01/08.................................. 12,674
15,724 Pool #160065,
9.50%, 11/01/08.................................. 16,187
15,494 Pool #160066,
9.75%, 11/01/08.................................. 16,177
161,260 Pool #185743,
8.50%, 12/01/08.................................. 163,833
206,428 Pool #251974,
8.50%, 4/01/09................................... 209,561
261,416 Pool #185964,
8.50%, 2/01/10................................... 265,433
225,566 Gold Pool #E20201,
7.50%, 10/01/10.................................. 225,651
1,243,259 Gold Pool #G10439,
6.50%, 1/01/11................................... 1,207,245
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES (CONTINUED)
$ 235,492 Gold Pool #E00417,
7.00%, 2/01/11................................... $ 231,718
152,388 Pool #555045,
8.00%, 5/01/19................................... 152,720
362,687 Gold Pool #A01217,
8.50%, 4/01/20................................... 370,874
-----------
4,817,379
-----------
FEDERAL NATIONAL MORTGAGE
ASSOC.--2.8%
12,102 Pool #34510,
7.25%, 8/01/01................................... 12,053
33,458 Pool #168430,
7.00%, 7/01/03................................... 32,300
448,886 Pool #195152,
7.00%, 1/01/08................................... 443,528
236,033 Pool #81860,
8.00%, 4/01/09................................... 237,998
307,688 Pool #278437,
7.50%, 5/01/09................................... 307,762
148,818 Pool #6222,
9.00%, 4/01/16................................... 152,995
286,344 Pool #124118,
9.00%, 3/01/22................................... 296,070
250,571 Pool #320514,
6.50%, 9/01/25................................... 237,220
553,189 Pool #446431,
8.50%, 10/01/26.................................. 565,411
-----------
2,285,337
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
80
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--5.4%
$ 20,649 Pool #6400,
8.00%, 6/15/05................................... $ 20,880
24,795 Pool #7774,
8.00%, 9/15/05................................... 25,073
26,743 Pool #7038,
8.00%, 10/15/05.................................. 27,043
34,670 Pool #11310,
8.00%, 11/15/05.................................. 35,058
7,485 Pool #9839,
8.00%, 7/15/06................................... 7,569
18,577 Pool #10459,
8.00%, 8/15/06................................... 18,785
53,960 Pool #10419,
8.00%, 9/15/06................................... 54,565
25,745 Pool #12590,
8.00%, 9/15/06................................... 26,033
57,695 Pool #14295,
8.00%, 1/15/07................................... 58,342
49,679 Pool #204365,
9.00%, 3/15/17................................... 51,601
217,005 Pool #247223,
9.00%, 4/15/18................................... 225,342
24,390 Pool #177793,
9.50%, 5/15/19................................... 25,494
9,539 Pool #256032,
8.50%, 10/15/19.................................. 9,823
6,607 Pool #284645,
8.50%, 2/15/20................................... 6,802
21,031 Pool #290778,
9.50%, 5/15/20................................... 21,980
21,328 Pool #319650,
7.00%, 11/15/22.................................. 20,840
42,946 Pool #350532,
6.50%, 6/15/23................................... 41,023
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES (CONTINUED)
$1,317,999 Pool #351405,
6.50%, 1/15/24................................... $ 1,258,065
126,912 Pool #359470,
7.00%, 1/15/24................................... 123,852
222,289 Pool #376445,
6.50%, 4/15/24................................... 212,181
115,220 Pool #386348,
7.50%, 6/15/24................................... 114,844
1,169,066 Pool #780035,
6.50%, 7/15/24................................... 1,115,905
134,258 Pool #407323,
8.25%, 4/15/25................................... 136,634
649,192 Pool #464704,
8.00%, 7/15/28................................... 656,820
-----------
4,294,554
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $11,769,002)............................... 11,397,270
-----------
</TABLE>
<TABLE>
<C> <S> <C>
MONEY MARKET FUND--4.5%
3,641,394 ACM Institutional Reserves (Government
Portfolio), 6.31% (a) (Cost $3,641,394).......... 3,641,394
-----------
TOTAL INVESTMENTS
(Cost $83,102,771)(b)--99.3%..................... 79,788,408
Other assets less
liabilities--0.7%................................ 568,772
-----------
NET ASSETS--100.0%............................... $80,357,180
===========
</TABLE>
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED DEPRECIATION WAS $3,314,363
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $47,208 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $3,361,571.
SEE NOTES TO FINANCIAL STATEMENTS.
81
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investment at value
(Cost $83,102,771).......................................................... $ 79,788,408
Receivables:
Investments sold............................................................ 2,496,538
Interest.................................................................... 742,211
Capital Stock sold.......................................................... 351
Deferred organization costs and other assets.................................. 2,765
--------------
TOTAL ASSETS................................................................ 83,030,273
--------------
LIABILITIES:
Payables:
Investments purchased....................................................... 2,047,814
Due to custodian............................................................ 327,947
Dividends................................................................... 131,969
Capital stock repurchased................................................... 96,220
Services provided by The Bank of New York and Administrator................. 48,255
Accrued expenses and other liabilities........................................ 20,888
--------------
TOTAL LIABILITIES........................................................... 2,673,093
--------------
NET ASSETS:..................................................................... $ 80,357,180
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 8,531
Capital surplus............................................................... 86,168,786
Accumulated net investment loss............................................... (57,308)
Accumulated net realized loss on investments.................................. (2,448,466)
Net unrealized depreciation on investments.................................... (3,314,363)
--------------
NET ASSETS...................................................................... $ 80,357,180
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 69,026,625
==============
Shares outstanding............................................................ 7,327,929
==============
Net asset value, offering price and repurchase price per share................ $ 9.42
==============
INVESTOR SHARES:
Net assets.................................................................... $ 11,330,555
==============
Shares outstanding............................................................ 1,203,387
==============
Net asset value, offering price and repurchase price per share................ $ 9.42
==============
Institutional Shares authorized at $.001 par value.............................. 200,000,000
Investor Shares authorized at $.001 par value................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 2,767,717
--------------
EXPENSES:
Advisory...................................................................... 203,136
Administration................................................................ 81,255
12b-1 fee--Investor Shares.................................................... 14,171
Accounting services........................................................... 29,880
Transfer agent................................................................ 20,924
Custodian..................................................................... 15,805
Registration and filings...................................................... 5,152
Directors..................................................................... 2,697
Audit......................................................................... 2,263
Reports to shareholders....................................................... 1,567
Legal......................................................................... 1,078
Insurance..................................................................... 675
Cash management............................................................... 368
Other......................................................................... 14,211
--------------
TOTAL EXPENSES.............................................................. 393,182
Fees waived by The Bank of New York (Note 3).................................. (57,453)
Earnings credit adjustment (Note 3)........................................... (589)
--------------
NET EXPENSES................................................................ 335,140
--------------
NET INVESTMENT INCOME....................................................... 2,432,577
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments.............................................. (203,147)
Increase in unrealized appreciation on investments during the period.......... 267,023
--------------
Net realized and unrealized gain on investments............................... 63,876
--------------
Net increase in net assets resulting from operations.......................... $ 2,496,453
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
82
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
JUNE 30, 2000
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 2,432,577 $ 4,653,613
Net realized gain (loss) on investments....................................... (203,147) 109,084
Increase (decrease) in unrealized appreciation (depreciation) on investments
during the period........................................................... 267,023 (5,412,826)
------------ ------------
Net increase (decrease) in net assets resulting from operations............. 2,496,453 (650,129)
------------ ------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (2,105,244) (3,972,756)
Investor Shares........................... (327,333) (680,857)
------------ ------------
(2,432,577) (4,653,613)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 10,386,332 18,730,232
Investor Shares.................................. 561,517 2,095,918
Proceeds from shares issued on reinvestment of dividends:
Institutional Shares...... 1,250,448 2,466,691
Investor Shares........... 260,350 534,152
Cost of capital stock repurchased:
Institutional Shares............................ (11,437,153) (12,875,346)
Investors Shares................................ (1,996,952) (1,847,999)
------------ ------------
Net increase (decrease) in net assets resulting from capital stock
transactions.............................................................. (975,458) 9,103,648
------------ ------------
INCREASE (DECREASE) IN NET ASSETS......................................... (911,582) 3,799,906
NET ASSETS:
Beginning of year............................................................. 81,268,762 77,468,856
------------ ------------
End of period (includes accumulated net investment loss of $57,308 at both
June 30, 2000 and December 31, 1999)........................................ $ 80,357,180 $ 81,268,762
============ ============
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 1,113,709 1,910,666
Investor Shares.................................................... 60,107 216,660
Shares issued on reinvestment of dividends:
Institutional Shares................... 133,696 254,214
Investor Shares........................ 27,848 55,083
Shares repurchased:
Institutional Shares......................................... (1,224,320) (1,326,556)
Investor Shares.............................................. (213,784) (190,193)
------------ ------------
Net increase (decrease)..................................................... (102,744) 919,874
Shares outstanding, beginning of year......................................... 8,634,060 7,714,186
------------ ------------
Shares outstanding, end of period............................................. 8,531,316 8,634,060
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
83
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-------------------------------------------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, APRIL 1, 1997*
JUNE 30, 2000 ------------------------------------ THROUGH
(UNAUDITED) 1999 1998 DECEMBER 31, 1997
---------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 9.41 $ 10.04 $ 9.88 $ 9.53
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.28 0.56 0.56 0.42
Net realized and unrealized gain (loss)
on investments........................ 0.01 (0.64) 0.16 0.35
------- ------- ------- -------
Total from investment operations...... 0.29 (0.08) 0.72 0.77
------- ------- ------- -------
DIVIDENDS
Dividends from net investment income.... (0.28) (0.55) (0.56) (0.42)
------- ------- ------- -------
Net asset value at end of period........ $ 9.42 $ 9.41 $ 10.04 $ 9.88
======= ======= ======= =======
TOTAL RETURN:........................... 3.14%** (0.73)% 7.49% 8.27%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $69,027 $68,762 $64,944 $64,128
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.79%*** 0.82% 0.90% 0.90%***
Expenses, prior to waiver from The
Bank of New York.................... 0.93%*** 0.92% 0.96% 0.99%***
Net investment income, net of waiver
from The Bank of New York........... 6.02%*** 5.76% 5.63% 5.79%***
Portfolio turnover rate................. 8% 16% 61% 41%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
---------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 ---------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of year.... $ 9.41 $ 10.04 $ 9.87 $ 9.70 $ 9.94 $ 9.10
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.27 0.53 0.54 0.54 0.54 0.53
Net realized and unrealized gain (loss)
on investments........................ 0.01 (0.63) 0.17 0.17 (0.24) 0.84
------- ------- ------- ------- ------- -------
Total from investment operations...... 0.28 (0.10) 0.71 0.71 0.30 1.37
------- ------- ------- ------- ------- -------
DIVIDENDS
Dividends from net investment income.... (0.27) (0.53) (0.54) (0.54) (0.54) (0.53)
------- ------- ------- ------- ------- -------
Net asset value at end of year.......... $ 9.42 $ 9.41 $ 10.04 $ 9.87 $ 9.70 $ 9.94
======= ======= ======= ======= ======= =======
TOTAL RETURN:+.......................... 3.01%** (0.98)% 7.33% 7.54% 3.16% 15.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year
(000's omitted)....................... $11,331 $12,507 $12,525 $10,458 $64,117 $60,659
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.04%*** 1.07% 1.15% 1.08% 1.02% 1.06%
Expenses, prior to waiver from The
Bank of New York.................... 1.18%*** 1.20% 1.26% 1.11% 1.02% 1.06%
Net investment income, net of waiver
from The Bank of New York........... 5.77%*** 5.50% 5.38% 5.57% 5.54% 5.52%
Portfolio turnover rate................. 8% 16% 61% 41% 57% 48%
</TABLE>
+ TOTAL RETURN DOES NOT CONSIDER THE EFFECT OF THE SALES LOAD FOR THOSE
PERIODS IN WHICH THE SALES LOAD WAS IN EFFECT.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
CORPORATE BONDS--48.6%
AEROSPACE AND DEFENSE--1.0%
$ 4,000,000 Raytheon Co.,
7.90%, 3/01/03**................................. $ 4,021,396
------------
AUTOMOTIVE--0.0%
80,000 Ford Motor Co.,
6.375%, 2/01/29.................................. 65,487
------------
BANKING--1.7%
6,400,000 Interamerican Development Bank, 8.50%, 3/15/11... 7,045,594
------------
BEVERAGES--BREWERS--1.1%
5,000,000 Anheuser-Busch Cos., Inc., 5.75%, 1/15/11........ 4,381,095
------------
BEVERAGES--SOFT DRINKS--0.6%
2,500,000 Coca-Cola Enterprises, 7.125%, 8/01/17........... 2,329,057
------------
CABLE TV SYSTEMS--0.5%
3,500,000 Charter Communications Holdings LLC,
0.00%, 4/01/11................................... 1,986,250
------------
COMPUTERS--MICRO--0.4%
1,580,000 IBM Corp.,
7.00%, 10/30/25.................................. 1,517,320
------------
ENTERTAINMENT--5.8%
1,425,000 Carmike Cinemas, Inc., Series B, 9.375%,
2/01/09.......................................... 780,187
4,500,000 PRIMEDIA, Inc., Series B, 8.50%, 2/01/06......... 4,275,000
5,500,000 Time Warner, Inc.,
7.75%, 6/15/05................................... 5,540,007
7,250,000 Time Warner, Inc. PATS, 6.10%, 12/30/01**........ 7,117,854
5,700,000 Viacom, Inc.,
7.75%, 6/01/05................................... 5,739,723
------------
23,452,771
------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
FINANCIAL SERVICES--16.4%
$ 7,950,000 Aetna Services, Inc.,
6.97%, 8/15/36................................... $ 7,793,464
2,500,000 Ameritech Capital Funding Corp., 6.30%,
10/15/04......................................... 2,413,395
5,000,000 Block Financial Corp., 6.75%, 11/01/04........... 4,790,980
5,000,000 Ford Motor Credit Co., 6.70%, 7/16/04............ 4,831,630
3,750,000 General Electric Capital Corp., 7.875%,
12/01/06......................................... 3,854,932
12,970,000 General Motors Acceptance Corp., 6.15%,
4/05/07.......................................... 11,861,039
10,000,000 Goldman Sachs Group, L.P., 6.75%, 2/15/06**...... 9,431,160
6,800,000 Lehman Brothers Holdings, Inc., 7.375%,
5/15/04.......................................... 6,645,205
3,089,000 Merrill Lynch & Co., 6.55%, 8/01/04.............. 2,989,942
1,984,000 Merrill Lynch & Co., 6.875%, 11/15/18............ 1,763,996
4,000,000 Morgan Stanley Dean Witter, 7.125%, 1/15/03...... 3,975,644
5,800,000 Salomon Smith Barney Holdings, Inc.,
6.25%, 1/15/05................................... 5,541,535
------------
65,892,922
------------
FOOD PROCESSING--3.1%
5,000,000 Nabisco, Inc.,
6.125%, 2/01/03.................................. 4,715,300
8,075,000 Nabisco, Inc.,
6.85%, 6/15/05................................... 7,588,530
------------
12,303,830
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
HOTELS AND GAMING--1.1%
$ 4,500,000 Hilton Hotels Corp., 7.375%, 6/01/02............. $ 4,435,290
------------
HOUSEHOLD AND PERSONAL CARE PRODUCTS--1.1%
4,650,000 Procter & Gamble Co., 6.60%, 12/15/04............ 4,573,512
------------
INDUSTRIAL AND COMMERCIAL
SERVICES--1.2%
5,000,000 WMX Technologies, Inc., 7.70%, 10/01/02.......... 4,847,390
------------
MEDIA--2.3%
1,750,000 Chancellor Media Corp., 9.00%, 10/01/08.......... 1,802,500
4,875,000 Liberty Media Group, 7.875%, 7/15/09............. 4,700,963
3,000,000 USA Networks, Inc., 6.75%, 11/15/05.............. 2,847,294
------------
9,350,757
------------
OFFICE EQUIPMENT--1.1%
4,593,000 Xerox Capital Europe PLC, 5.875%, 5/15/04........ 4,273,033
------------
PUBLISHING--1.1%
4,250,000 TV Guide, Inc.,
8.125%, 3/01/09.................................. 4,260,625
------------
RESTAURANTS--1.9%
8,000,000 Tricon Global Restaurants, Inc., 7.45%,
5/15/05.......................................... 7,499,688
------------
RETAIL--DEPARTMENT STORES--0.3%
1,373,000 Sears Roebuck Co., Series 3, 6.92%, 6/17/04...... 1,338,436
------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
RETAIL--DISCOUNT STORES--1.4%
$ 5,925,000 Wal-Mart Stores,
6.875%, 8/10/09.................................. $ 5,808,633
------------
TELECOMMUNICATIONS--5.9%
8,000,000 AT&T Corp.,
6.00%, 3/15/09................................... 7,144,760
5,000,000 GTE Corp.,
7.51%, 4/01/09................................... 4,922,900
1,930,000 NEXTLINK Communications, Inc., 10.75%,
11/15/08......................................... 1,910,700
4,070,000 Vodafone Airtouch PLC, 7.75%, 2/15/10**.......... 4,041,954
5,846,000 WorldCom, Inc.,
7.75%, 4/01/07................................... 5,852,735
------------
23,873,049
------------
UTILITIES--ELECTRIC--0.6%
2,268,293 Niagara Mohawk Power Corp., Series C,
7.125%, 7/01/01.................................. 2,256,954
------------
TOTAL CORPORATE BONDS
(Cost $203,331,869).............................. 195,513,089
------------
</TABLE>
<TABLE>
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS--26.5%
FEDERAL HOME LOAN MORTGAGE
CORP.--5.0%
5,000,000 5.50%, 5/15/02................................... 4,880,390
8,000,000 6.25%, 10/15/02.................................. 7,885,264
8,000,000 5.75%, 4/15/08................................... 7,335,248
------------
20,100,902
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS (CONTINUED)
FEDERAL NATIONAL MORTGAGE
ASSOC.--8.8%
$12,160,000 0.00%, 7/17/00................................... $ 12,121,159
7,366,000 5.125%, 2/13/04.................................. 6,925,911
7,500,000 5.75%, 6/15/05................................... 7,106,880
10,000,000 6.50%, 4/29/09................................... 9,351,070
------------
35,505,020
------------
TENNESSEE VALLEY AUTHORITY--0.1%
275,000 6.00%, 11/01/00.................................. 274,049
------------
UNITED STATES TREASURY BONDS--1.3%
1,255,000 6.25%, 2/15/07................................... 1,256,569
7,000,000 0.00%, 5/15/09................................... 4,063,066
------------
5,319,635
------------
UNITED STATES TREASURY NOTES--11.3%
5,000,000 5.875%, 11/15/04................................. 4,926,565
8,000,000 6.50%, 5/15/05................................... 8,090,000
3,600,000 6.50%, 8/15/05................................... 3,639,377
9,075,000 5.875%, 11/15/05................................. 8,919,028
10,000,000 7.00%, 7/15/06................................... 10,359,380
1,575,000 6.625%, 5/15/07.................................. 1,607,977
4,000,000 6.00%, 8/15/09................................... 3,968,752
3,888,000 6.00%, 2/15/26................................... 3,801,737
------------
45,312,816
------------
TOTAL UNITED STATES GOVERNMENT AGENCIES &
OBLIGATIONS
(Cost $107,797,029).............................. 106,512,422
------------
</TABLE>
<TABLE>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES--15.4%
FEDERAL HOME LOAN MORTGAGE
CORP.--11.7%
$ 47,596 Pool #180686,
6.00%, 8/01/03................................... $ 46,018
122,475 Pool #160074,
10.00%, 4/01/09.................................. 128,999
608,176 Pool #180006,
9.25%, 8/01/11................................... 623,233
9,577,125 Gold Pool #C00785, 6.50%, 6/01/29................ 9,045,916
7,842,743 Gold Pool #C32140, 6.50%, 10/01/29............... 7,407,734
8,121,711 Gold Pool #C00896, 7.50%, 12/01/29............... 8,018,124
9,960,925 Gold Pool #C36309, 7.00%, 2/01/30................ 9,626,049
7,790,000 FGLMC Gold (TBA), 8.00%, 7/01/30................. 7,782,697
4,318,000 FGLMC Gold (TBA), 8.50%, 7/01/30................. 4,334,867
------------
47,013,637
------------
FEDERAL NATIONAL MORTGAGE
ASSOC.--0.1%
356,759 Pool #219238,
8.50%, 2/01/09................................... 362,181
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--3.6%
$ 94,039 Pool #13416,
8.00%, 9/15/06................................... $ 95,092
39,058 Pool #13688,
8.00%, 11/15/06.................................. 39,496
76,303 Pool #12766,
8.00%, 12/15/06.................................. 77,157
67,743 Pool #16080,
7.50%, 4/15/07................................... 67,307
611,523 Pool #21598,
8.00%, 2/15/08................................... 618,371
123,928 Pool #27246,
9.00%, 12/15/08.................................. 128,032
60,237 Pool #31570,
9.50%, 6/15/09................................... 62,609
34,795 Pool #34366,
9.50%, 9/15/09................................... 36,166
29,827 Pool #33765,
9.50%, 10/15/09.................................. 31,001
64,454 Pool #34704,
9.50%, 10/15/09.................................. 67,156
305,977 Pool #171774,
9.00%, 9/15/16................................... 316,110
146,652 Pool #199885,
9.50%, 11/15/17.................................. 152,426
50,846 Pool #251646,
9.50%, 4/15/18................................... 52,848
32,184 Pool #290313,
9.50%, 5/15/20................................... 33,451
928,838 Pool #319650,
7.00%, 11/15/22.................................. 907,616
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
MORTGAGE-BACKED
SECURITIES (CONTINUED)
$ 969,607 Pool #349306,
8.00%, 2/15/23................................... $ 984,214
901,112 Pool #362262,
7.50%, 4/15/24................................... 895,310
361,167 Pool #376445,
6.50%, 4/15/24................................... 344,744
393,417 Pool #384069,
7.50%, 4/15/24................................... 390,884
89,398 Pool #780689,
6.50%, 12/15/27.................................. 85,014
9,501,791 Pool #464686,
6.50%, 7/15/28................................... 9,022,370
------------
14,407,374
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $62,211,680)............................... 61,783,192
------------
</TABLE>
<TABLE>
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS--5.2%
FEDERAL HOME LOAN MORTGAGE
CORP.--0.6%
1,000,000 Series 1678CA,
6.00%, 2/15/09................................... 902,780
757,571 Series 1607ZB,
5.50%, 12/15/10.................................. 753,824
992,790 Series 1627PJ,
6.00%, 3/15/23................................... 914,777
------------
2,571,381
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
FEDERAL NATIONAL MORTGAGE
ASSOC.--3.3%
$ 169,301 Series 1993-212C,
6.00%, 11/25/00.................................. $ 168,184
4,732,496 Series 1999-55PA,
7.00%, 6/18/13................................... 4,678,782
308,646 Series G93-20 PG,
6.50%, 2/25/19................................... 305,103
5,450,000 Series 1993-96PJ,
7.00%, 8/25/22................................... 5,298,653
2,832,833 Series 1993-199C,
5.80%, 10/25/23.................................. 2,748,798
------------
13,199,520
------------
FIXED RATE SECURITIES--0.6%
2,378,587 Kidder Peabody Mortgage Assets Trust, Series 22,
Class D, 9.95%, 2/01/19.......................... 2,434,265
------------
MORTGAGE--BACKED SECURITIES--0.7%
2,950,154 Bear Stearns Commercial Mortgage Security, Series
1999-WF2, Class A1, 6.80%, 9/15/08............... 2,888,840
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $21,281,230)............................... 21,094,006
------------
</TABLE>
<TABLE>
<C> <S> <C>
ASSET-BACKED SECURITIES--5.1%
ASSET BACKED SECURITIES--CREDIT CARDS--2.7%
4,795,000 Discover Card Master Trust I, Series 1996-3,
Class A, 6.05%, 8/18/08.......................... 4,535,447
6,410,000 MBNA Master Credit Card Trust, Series 1999-J,
Class A, 7.00%, 2/15/12.......................... 6,303,498
------------
10,838,945
------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
ASSET-BACKED SECURITIES (CONTINUED)
ASSET BACKED SECURITIES--TRADE & LEASE RECEIVABLES--2.4%
$ 4,150,000 Associates Automobile Receivables Trust, 2000-1,
Class A3, 7.30%, 1/15/04......................... $ 4,160,562
2,505,000 Capital Auto Receivables Asset Trust, 2000-1,
Class A4, 7.00%, 1/15/05......................... 2,503,334
3,000,000 Daimler Chrysler Auto Trust, Series 2000-A,
Class A4, 7.23%, 1/06/05......................... 3,010,935
------------
9,674,831
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $20,628,552)............................... 20,513,776
------------
</TABLE>
<TABLE>
<C> <S> <C>
MONEY MARKET FUND--1.0%
3,847,115 ACM Institutional Reserves (Prime Portfolio),
6.52%(a)
(Cost $3,847,115)................................ 3,847,115
------------
TOTAL INVESTMENTS
(Cost $419,097,475)(b)--101.8%................... 409,263,600
Liabilities in excess of other assets--(1.8%).... (7,424,572)
------------
NET ASSETS--100.0%............................... $401,839,028
============
</TABLE>
** SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933.
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED DEPRECIATION WAS $9,833,875
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $1,145,033 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $10,978,908.
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investment at value
(Cost $419,097,475)......................................................... $ 409,263,600
Cash.......................................................................... 2
Receivables:
Interest.................................................................... 5,851,697
Capital Stock sold.......................................................... 403,478
Investments sold............................................................ 12,003
--------------
TOTAL ASSETS................................................................ 415,530,780
--------------
LIABILITIES:
Payables:
Investments purchased....................................................... 12,539,017
Dividends................................................................... 680,444
Services provided by The Bank of New York and Administrator................. 240,811
Capital stock repurchased................................................... 203,089
Accrued expenses and other liabilities........................................ 28,391
--------------
TOTAL LIABILITIES........................................................... 13,691,752
--------------
NET ASSETS:..................................................................... $ 401,839,028
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 41,056
Capital surplus............................................................... 419,521,617
Accumulated net investment loss............................................... (116,910)
Accumulated net realized loss on investments.................................. (7,772,860)
Net unrealized depreciation on investments.................................... (9,833,875)
--------------
NET ASSETS...................................................................... $ 401,839,028
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 397,665,030
==============
Shares outstanding............................................................ 40,629,496
==============
Net asset value, offering price and repurchase price per share................ $ 9.79
==============
INVESTOR SHARES:
Net assets.................................................................... $ 4,173,998
==============
Shares outstanding............................................................ 426,247
==============
Net asset value, offering price and repurchase price per share................ $ 9.79
==============
Institutional Shares authorized at $.001 par value.............................. 200,000,000
Investor Shares authorized at $.001 par value................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 13,741,571
--------------
EXPENSES:
Advisory...................................................................... 984,009
Administration................................................................ 393,604
12b-1 fee--Investor Shares.................................................... 5,139
Transfer agent................................................................ 48,885
Accounting services........................................................... 29,879
Custodian..................................................................... 27,487
Organization.................................................................. 10,348
Registration and filings...................................................... 7,489
Reports to shareholders....................................................... 6,801
Insurance..................................................................... 5,204
Audit......................................................................... 3,922
Legal......................................................................... 3,899
Directors..................................................................... 2,697
Cash management............................................................... 1,123
Other......................................................................... 14,218
--------------
TOTAL EXPENSES.............................................................. 1,544,704
Fees waived by The Bank of New York (Note 3).................................. (574)
Earnings credit adjustment (Note 3)........................................... (1,396)
--------------
NET EXPENSES................................................................ 1,542,734
--------------
NET INVESTMENT INCOME....................................................... 12,198,837
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments.............................................. (5,934,397)
Increase in unrealized depreciation on investments during the period.......... 4,006,590
--------------
Net realized and unrealized loss on investments............................... (1,927,807)
--------------
Net increase in net assets resulting from operations.......................... $ 10,271,030
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 12,198,837 $ 23,444,118
Net realized loss on investments.............................................. (5,934,397) (1,931,004)
Increase (decrease) in unrealized appreciation (depreciation) on investments
during the period........................................................... 4,006,590 (27,480,895)
------------ -------------
Net increase (decrease) in net assets resulting from operations............. 10,271,030 (5,967,781)
------------ -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (12,076,700) (23,199,170)
Investor Shares........................... (122,290) (244,948)
Distributions from capital gains:
Institutional Shares............................. -- (684,312)
Investor Shares.................................. -- (8,042)
------------ -------------
(12,198,990) (24,136,472)
------------ -------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 43,130,676 150,144,716
Investor Shares.................................. 471,701 1,655,747
Proceeds from shares issued on reinvestment
of dividends and distributions: Institutional Shares........................ 1,375,439 3,083,923
Investor Shares.................................. 122,320 250,234
Cost of capital stock repurchased:
Institutional Shares............................ (38,615,909) (122,291,295)
Investors Shares................................ (1,004,138) (955,565)
------------ -------------
Net increase in net assets resulting from capital stock transactions........ 5,480,089 31,887,760
------------ -------------
INCREASE IN NET ASSETS.................................................... 3,552,129 1,783,507
NET ASSETS:
Beginning of year............................................................. 398,286,899 396,503,392
------------ -------------
End of period (includes accumulated net investment loss of $116,910 at
June 30, 2000 and 116,757 at December 31, 2000)............................. $401,839,028 $ 398,286,899
============ =============
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 4,434,233 14,659,145
Investor Shares.................................................... 48,094 162,350
Shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... 141,373 304,231
Investor Shares............................................. 12,566 24,627
Shares repurchased:
Institutional Shares......................................... (3,963,760) (11,947,117)
Investor Shares.............................................. (102,508) (94,021)
------------ -------------
Net increase................................................................ 569,998 3,109,215
Shares outstanding, beginning of year......................................... 40,485,745 37,376,530
------------ -------------
Shares outstanding, end of period............................................. 41,055,743 40,485,745
============ =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
------------------------------------------------------------
SIX MONTHS FOR THE PERIOD
ENDED YEAR ENDED DECEMBER 31, APRIL 1, 1997*
JUNE 30, 2000 -------------------------- THROUGH
(UNAUDITED) 1999 1998 DECEMBER 31, 1997
------------- ------------ ------------ -----------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 9.84 $ 10.61 $ 10.45 $ 10.00
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.30 0.60 0.61 0.47
Net realized and unrealized gain (loss)
on investments........................ (0.05) (0.76) 0.26 0.45
-------- -------- -------- --------
Total from investment operations...... 0.25 (0.16) 0.87 0.92
-------- -------- -------- --------
DIVIDENDS AND DISTRIBUTION
Dividends from net investment
income................................ (0.30) (0.59) (0.61) (0.47)
Distribution from capital gains......... -- (0.02) (0.10) --
-------- -------- -------- --------
Total dividends and distribution...... (0.30) (0.61) (0.71) (0.47)
-------- -------- -------- --------
Net asset value at end of period........ $ 9.79 $ 9.84 $ 10.61 $ 10.45
======== ======== ======== ========
TOTAL RETURN:........................... 2.60%** (1.47)% 8.56% 9.34%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $397,665 $393,680 $392,522 $350,330
Ratio to average net assets of:
Expenses, net of waiver from
The Bank of New York................ 0.78%*** 0.78% 0.81% 0.80%***
Expenses, prior to waiver from The
Bank of New York.................... 0.78%*** 0.78% 0.81% 0.80%
Net investment income................. 6.20%*** 5.89% 5.79% 6.14%***
Portfolio turnover rate................. 33% 57% 53% 81%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
----------------------------------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, MAY 1, 1997*
JUNE 30, 2000 --------------------------- THROUGH
(UNAUDITED) 1999 1998 DECEMBER 31, 1997
---------------- ------------ ------------- -----------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 9.84 $10.61 $10.45 $10.08
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.29 0.57 0.58 0.40
Net realized and unrealized gain (loss)
on investments........................ (0.05) (0.76) 0.26 0.37
------ ------ ------ ------
Total from investment operations...... 0.24 (0.19) 0.84 0.77
------ ------ ------ ------
DIVIDENDS AND DISTRIBUTION
Dividends from net investment
income................................ (0.29) (0.56) (0.58) (0.40)
Distribution from capital gains......... -- (0.02) (0.10) --
------ ------ ------ ------
Total dividends and distribution...... (0.29) (0.58) (0.68) (0.40)
------ ------ ------ ------
Net asset value at end of period........ $ 9.79 $ 9.84 $10.61 $10.45
====== ====== ====== ======
TOTAL RETURN:........................... 2.47%** (1.73)% 8.22% 7.76%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $4,174 $4,607 $3,981 $1,891
Ratio to average net assets of:
Expenses, net of waiver from
The Bank of New York................ 1.03%*** 1.05% 1.13% 1.06%***
Expenses, prior to waiver from The
Bank of New York.................... 1.03%*** 1.09% 1.13% 1.06%
Net investment income................. 5.95%*** 5.62% 5.51% 5.74%***
Portfolio turnover rate................. 33% 57% 53% 81%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE>
BNY HAMILTON US BOND MARKET INDEX FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ ------------
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS--
54.3%
FEDERAL HOME LOAN BANK--5.3%
$ 475,000 4.875%, 1/22/02......................... $ 461,146
------------
FEDERAL HOME LOAN MORTGAGE CORP.--4.6%
400,000 0.00%, 7/03/00.......................... 400,000
------------
FEDERAL NATIONAL MORTGAGE ASSOC.--16.2%
1,325,000 6.50%, 8/15/04.......................... 1,300,457
100,000 7.125%, 1/15/30......................... 100,556
------------
1,401,013
------------
UNITED STATES TREASURY BONDS--1.7%
125,000 7.625%, 2/15/25......................... 147,461
------------
UNITED STATES TREASURY NOTES--26.5%
925,000 6.625%, 3/31/02......................... 927,024
325,000 6.00%, 8/15/04.......................... 322,055
125,000 6.00%, 8/15/09.......................... 124,023
825,000 7.50%, 11/15/16......................... 929,414
------------
2,302,516
------------
TOTAL UNITED STATES GOVERNMENT AGENCIES
& OBLIGATIONS
(Cost $4,657,323)....................... 4,712,136
------------
CORPORATE BONDS--28.9%
AEROSPACE AND DEFENSE--1.6%
150,000 Raytheon Co.,
6.75%, 8/15/07.......................... 139,538
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
BANKING--3.5%
$ 100,000 ABN AMRO Bank NV, 7.25%, 5/31/05........ $ 99,127
80,000 Dresdner Bank - New York, 6.625%,
9/15/05................................. 76,289
145,000 FleetBoston Financial Corp., 6.50%,
3/15/08................................. 133,296
------------
308,712
------------
BEVERAGES--SOFT DRINKS--1.6%
150,000 Coca-Cola Enterprises, 7.125%,
8/01/17................................. 139,743
------------
COMPUTERS--MICRO--1.4%
125,000 IBM Corp.,
7.00%, 10/30/25......................... 120,041
------------
FINANCIAL SERVICES--9.1%
150,000 Associates Corp. NA, 5.80%, 4/20/04..... 140,693
130,000 CIT Group, Inc.,
7.375%, 3/15/03......................... 128,379
150,000 Citigroup, Inc.,
5.80%, 3/15/04.......................... 143,129
150,000 General Motors Acceptance Corp., 6.85%,
6/17/04................................. 146,798
75,000 Lehman Brothers Holdings, Inc., 7.75%,
1/15/05................................. 74,358
175,000 Merrill Lynch & Co., 6.00%, 2/17/09..... 155,086
------------
788,443
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
95
<PAGE>
BNY HAMILTON US BOND MARKET INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
HOUSEHOLD AND PERSONAL CARE PRODUCTS--0.6%
$ 50,000 Procter & Gamble Co., 6.60%, 12/15/04... $ 49,178
------------
MEDIA--1.7%
150,000 Liberty Media Group, 7.875%, 7/15/09.... 144,645
------------
RETAIL--DEPARTMENT STORES--1.7%
150,000 Sears Roebuck Acceptance Corp., 6.00%,
3/20/03................................. 143,896
------------
RETAIL--DISCOUNT STORES--1.2%
110,000 Wal-Mart Stores,
6.875%, 8/10/09......................... 107,840
------------
TELECOMMUNICATIONS--5.1%
150,000 AT&T Corp.,
6.50%, 3/15/29.......................... 125,992
50,000 Deutsche Telekom International Fin
(Netherlands),
8.00%, 6/15/10(a)....................... 49,829
150,000 GTE Corp.,
6.94%, 4/15/28.......................... 132,848
150,000 Sprint Capital Corp., 6.125%,
11/15/08................................ 133,864
------------
442,533
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
TRANSPORTATION--RAIL--1.4%
$ 150,000 Union Pacific Corp., 6.625%, 2/01/29.... $ 124,320
------------
TOTAL CORPORATE BONDS
(Cost $2,492,803)....................... 2,508,889
------------
MORTGAGE-BACKED SECURITIES--15.6%
FEDERAL HOME LOAN MORTGAGE CORP.--13.8%
750,000 Gold Pool #20437,
6.50%, 7/15/30.......................... 703,184
500,000 Gold Pool (TBA),
7.50%, 7/15/30.......................... 490,703
------------
1,193,887
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--1.8%
149,825 Pool #500091,
8.50%, 4/15/30.......................... 153,593
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $1,345,958)....................... 1,347,480
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
96
<PAGE>
BNY HAMILTON US BOND MARKET INDEX FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ ------------
<C> <S> <C>
FOREIGN GOVERNMENT AGENCIES & OBLIGATIONS--3.5%
$ 150,000 Quebec Province (Canada), 7.00%,
1/30/07................................. $ 147,163
150,000 Republic of Korea (Korea), 8.875%,
4/15/08................................. 155,813
------------
TOTAL FOREIGN GOVERNMENT AGENCIES &
OBLIGATIONS
(Cost $301,047)......................... 302,976
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ ------------
<C> <S> <C>
MONEY MARKET FUND--9.0%
MONEY MARKET SECURITIES--9.0%
$ 347,259 ACM Institutional Reserves (Government
Portfolio), 6.31%(b).................... $ 347,259
434,949 ACM Institutional Reserves (Prime
Portfolio), 6.52%(b).................... 434,949
------------
TOTAL MONEY MARKET FUND
(Cost $782,208)......................... 782,208
------------
TOTAL INVESTMENTS
(Cost $9,579,339)(c)--111.3%............ 9,653,689
Liabilities in excess of other
assets--(11.3%)......................... (977,513)
------------
NET ASSETS--100.0%...................... $ 8,676,176
============
</TABLE>
(a) THE COUPON ON THIS SECURITY VARIES ALONG WITH ITS RATING. IF ITS RATING
FALLS BELOW SINGLE A BY EITHER MOODY'S OR STANDARD & POORS, THE COUPON
STEPS UP 50 BASIS POINTS. IF PREVIOUS SITUATION OCCURS, AND THE RATING THEN
INCREASES BACK ABOVE BBB, THE COUPON STEPS DOWN 50 BASIS POINTS. THE
SECURITY IS CURRENTLY RATED AA.
(b) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(c) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED APPRECIATION WAS $74,350 BASED
ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE GROSS
UNREALIZED APPRECIATION OF $78,561 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $4,211.
SEE NOTES TO FINANCIAL STATEMENTS.
97
<PAGE>
BNY HAMILTON U.S. BOND MARKET INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Cost $9,579,339)................... $ 9,653,689
Cash.................................. 67
Receivables:
Investments sold.................... 636,820
Interest............................ 149,407
Due from Advisor.................... 16,536
-----------
TOTAL ASSETS........................ 10,456,519
-----------
LIABILITIES:
Payables:
Investments purchased............... 1,649,742
Capital stock repurchased........... 97,809
Distributions....................... 17,555
Services provided by the Bank of New
York and Administrator............ 10,785
Accrued expenses and other
liabilities......................... 4,452
-----------
TOTAL LIABILITIES................... 1,780,343
-----------
NET ASSETS:............................. $ 8,676,176
===========
SOURCES OF NET ASSETS:
Capital stock @ par................... $ 862
Capital surplus....................... 8,598,419
Overdistribution of net investment
income.............................. (1,785)
Accumulated net realized gain on
investments......................... 4,330
Net unrealized appreciation on
investments......................... 74,350
-----------
NET ASSETS.............................. $ 8,676,176
===========
INSTITUTIONAL SHARES:
Net assets............................ $ 8,676,176
===========
Shares outstanding.................... 861,591
===========
Net asset value, offering price and
repurchase price per share.......... $ 10.07
===========
Institutional Shares authorized @ $.001
par value............................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 28, 2000*
THROUGH JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.............................. $102,054
-------
EXPENSES:
Accounting services................... 13,709
Advisory.............................. 3,639
Administration........................ 2,911
Transfer agent........................ 1,765
Custodian............................. 1,029
Directors............................. 957
Audit................................. 756
Reports to shareholders............... 544
Registration and filings.............. 192
Legal................................. 13
Cash management....................... 13
Other................................. 226
-------
TOTAL EXPENSES...................... 25,754
Fees waived by the Bank of New York
(Note 3)............................ (20,175)
Earnings credit adgustment (Note 3)... (485)
-------
NET EXPENSES........................ 5,094
-------
NET INVESTMENT INCOME............... 96,960
-------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on:
Investments......................... 4,330
Increase in unrealized appreciation on
Investments during the period....... 74,350
-------
Net realized and unrealized gain on
investments......................... 78,680
-------
Net increase in net assets resulting
from operations..................... $175,640
=======
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
98
<PAGE>
BNY HAMILTON U.S. BOND MARKET INDEX FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
APRIL 28, 2000*
THROUGH JUNE 30, 2000
(UNAUDITED)
----------------------
<S> <C>
OPERATIONS:
Net investment income................. $ 96,960
Net realized gain on investments...... 4,330
Increase in unrealized appreciation on
investments during the period....... 74,350
-----------
Net increase in net assets resulting
from operations.................... 175,640
-----------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional
Shares... (98,745)
-----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional
Shares... 9,625,579
Proceeds from shares issued on
reinvestment of dividends:
Institutional
Shares... 71,511
Cost of capital stock repurchased:
Institutional
Shares... (1,097,809)
-----------
Net increase in net assets resulting
from capital stock transactions.... 8,599,281
-----------
INCREASE IN NET ASSETS............ 8,676,176
NET ASSETS:
Beginning of period................... --
-----------
End of period (includes
overdistributed net investment
income of $1,785 at June 30,
2000)............................... $ 8,676,176
===========
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares....... 965,036
Shares issued on reinvestment of
dividends:
Institutional
Shares... 7,176
Shares repurchased:
Institutional
Shares............. (110,621)
-----------
Net increase........................ 861,591
Shares outstanding, beginning of
period.............................. --
-----------
Shares outstanding, end of period..... 861,591
===========
* COMMENCEMENT OF INVESTMENT
OPERATIONS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
99
<PAGE>
BNY HAMILTON U.S. BOND MARKET INDEX FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
FOR THE PERIOD
APRIL 28, 2000*
THROUGH JUNE 30, 2000
(UNAUDITED)
------------------------
<S> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.13
Net realized and unrealized gain on
investments........................... 0.05
-------
Total from investment operations...... 0.18
-------
DIVIDENDS
Dividends from net investment income.... (0.11)
-------
Net asset value at end of period........ $ 10.07
=======
TOTAL RETURN:........................... 1.68%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's
omitted).............................. $ 8,676
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.35%***
Expenses, prior to waiver from The
Bank of New York.................... 1.74%***
Net investment income net of waiver
from The Bank of New York........... 6.66%***
Portfolio turnover rate................. 102%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
100
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
----------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.0%
EDUCATION--15.1%
$ 2,000,000 California Education Facilities
Authority Revenue (Claremont McKenna
College)................................ Aa1/NR 4.500% 11/01/13 $ 1,860,940
1,190,000 California Education Facilities
Authority Revenue, Callable 4/01/09
@101.................................... A3/NR 4.700 4/01/12 1,129,834
1,000,000 District of Columbia Revenue
(Association of American Medical
Colleges), Series A, Callable 8/15/07
@102, AMBAC Insured+.................... Aaa/AAA 5.150 2/15/10 994,320
2,000,000 District of Columbia Revenue (University
of George Washington), MBIA Insured+.... Aaa/AAA 5.500 9/15/07 2,052,440
1,000,000 Illinois Educational Facility Authority
Revenue (University of Chicago),
Series A................................ Aa1/AA 5.000 7/01/08 992,850
1,000,000 Illinois Educational Facility Authority
Revenue (Northwestern University)....... Aa1/AA+ 5.000 11/01/32 984,560
2,500,000 Illinois Educational Facility Authority
Revenue, Mandatory Put 7/01/04 @100,
Floating Rate Notes, payable monthly,
interest rate resets weekly, next
interest rate reset date 7/03/00 ++..... Aa1/AA 4.400 7/01/25 2,396,325
1,500,000 Indiana University Revenue Student Fee,
Series M, Callable 8/01/09 @101......... Aa2/AA 5.750 8/01/10 1,571,235
1,250,000 New Jersey State Educational Facility
Authority Revenue (Princeton
University), Series B, Callable 7/01/09
@100.................................... Aaa/AAA 4.750 7/01/11 1,199,275
2,450,000 New York State Dormitory Authority
Revenue................................. Baa1/A 5.000 7/01/08 2,413,519
2,985,000 New York State Dormitory Authority
Revenue (City University), Series E..... Baa1/BBB+ 5.750 7/01/06 3,076,460
1,315,000 New York State Dormitory Authority
Revenue (Culinary Institution of
America), MBIA Insured+................. Aaa/AAA 4.400 7/01/11 1,206,355
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
101
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
----------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 1,000,000 New York State Dormitory Authority
Revenue (Rochester Instutional of
Technology) Callable 7/01/09 @101, AMBAC
Insured+................................ Aaa/AAA 4.625% 7/01/10 $ 948,480
20,000 New York State Dormitory Authority
Revenue, Unrefunded Balance, University
of Rochester, Callable 7/10/00 @101.5... A1/A+ 6.200 7/01/02 20,123
2,020,000 Private Colleges & Universities
Authority (Emory University),
Series A................................ Aa1/AA 5.500 11/01/06 2,092,983
1,000,000 Swarthmore Borough Authority
Pennsylvania Swarthmore College......... Aaa/AA+ 5.000 9/15/08 1,002,600
1,000,000 Swarthmore Borough Authority
Pennsylvania Swarthmore College......... Aaa/AA+ 5.250 9/15/09 1,018,930
2,185,000 Texas A&M University Revenue, Callable
5/15/07 @100............................ Aa2/AA+ 5.000 5/15/08 2,184,869
1,315,000 Texas A&M University Revenue, Callable
5/15/09 @100............................ Aa2/AA+ 5.200 5/15/12 1,308,241
1,000,000 Texas State Public Finance Authority
Building Revenue (State Technical
College), MBIA Insured+................. Aaa/AAA 6.100 8/01/04 1,029,770
5,255,000 Texas State Refunding Water Financial
Assistance, Series C, Callable 8/01/08
@100.................................... Aa1/AA 5.000 8/01/09 5,216,954
2,005,000 Wisconsin State......................... Aa2/AA 5.500 11/01/13 2,050,554
------------
36,751,617
------------
GENERAL OBLIGATIONS--35.2%
1,000,000 Aldine Texas Independent School
District, Callable, 2/15/07 @100........ Aaa/AAA 5.375 2/15/09 1,018,050
1,000,000 Beaufort County, S.C., FSA Insured+..... Aaa/AAA 4.600 2/01/07 976,760
1,100,000 Chicago Illinios Sales Tax Revenue, FGIC
Insured+................................ Aaa/AAA 5.000 1/01/08 1,093,884
3,000,000 Chicago Illinois, FSA Insured+.......... Aaa/AAA 5.500 1/01/12 3,071,970
3,000,000 Connecticut State, Series A............. Aa3/AA 5.000 5/15/04 3,031,380
2,500,000 Delaware State, Series A................ Aaa/AAA 5.125 4/01/05 2,540,350
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
102
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
----------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 2,880,000 El Paso Texas, Callable 8/15/08 @100,
FGIC Insured+........................... Aaa/AAA 4.400% 8/15/10 $ 2,643,091
2,835,000 El Paso Texas, Callable 8/15/08 @100,
FGIC Insured+........................... Aaa/AAA 4.500 8/15/11 2,601,254
5,000,000 Georgia State, Series C................. Aaa/AAA 5.250 7/01/08 5,111,400
4,000,000 Illinois State.......................... Aa2/AA 5.000 6/01/07 4,015,660
1,585,000 King County Washington, Series A........ Aa1/AA+ 5.000 1/01/04 1,596,127
2,185,000 Maryland State & Local Facilities
Loan-2nd Series......................... Aaa/AAA 5.250 6/15/05 2,235,626
2,000,000 Maryland State & Local Facilities
Loan-3rd Series, callable 10/15/06
@100.................................... Aaa/AAA 5.000 10/15/07 2,018,120
1,485,000 Massachusetts State-Construction Loan,
Series A................................ Aa2/AA- 5.100 11/01/02 1,501,172
2,000,000 Massachusetts State-Construction Loan,
Series D, FGIC Insured+................. Aaa/AAA 5.125 11/01/03 2,026,440
1,300,000 Milwaukee, Wisconsin Corp., Series O.... Aa1/AA+ 5.000 6/15/08 1,299,129
2,000,000 Milwaukee, Wisconsin Metropolitan Sewer
District, Series A...................... Aa1/AA+ 6.250 10/01/04 2,110,180
1,070,000 Minnesota State, Callable 11/01/06
@100.................................... Aaa/AAA 5.000 11/01/08 1,074,537
1,290,000 Montana State........................... Aa3/AA- 5.000 8/01/08 1,295,908
2,000,000 Nevada State............................ Aa2/AA 5.000 7/01/04 2,015,140
3,215,000 Nevada State Municipal Bond Bank Project
#52, Series A........................... Aa2/AA 6.375 5/15/06 3,456,864
2,760,000 Nevada State Municipal Bond Bank Project
#66 & 67, Series A,
Callable 5/15/08 @100................... Aa2/AA 5.250 5/15/10 2,784,619
3,470,000 Nevada State, Series A.................. Aa/AA 4.375 8/01/03 3,415,347
2,500,000 New Jersey State........................ Aa1/AA+ 5.000 5/01/06 2,526,300
2,000,000 New Jersey State, Series E.............. Aa1/AA+ 5.000 7/15/04 2,019,620
1,000,000 New York State, Series F................ A2/A+ 5.000 9/15/06 1,006,290
3,000,000 New York, Series A...................... A3/A- 6.000 8/01/06 3,162,030
1,000,000 New York, Series G...................... A3/A- 5.750 2/01/04 1,028,920
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
103
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
----------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 1,000,000 Ohio State Infrastructure Improvement,
Series A, Callable 8/01/08 @101......... Aa1/AA+ 5.250% 8/01/09 $ 1,020,960
3,000,000 Pennsylvania State - 1st Series, MBIA
Insured+................................ Aaa/AAA 5.000 6/01/08 3,003,750
2,970,000 Pennsylvania State - 1st Series, MBIA
Insured+................................ AA/AA 5.000 5/01/03 2,991,651
2,105,000 Port of Seattle, Washington Revenue,
Series A, FGIC Insured+................. Aaa/AAA 6.000 10/01/07 2,235,489
2,000,000 Rhode Island, Callable 8/01/07@101, MBIA
Insured+................................ Aaa/AAA 5.000 8/01/09 1,997,020
2,000,000 Round Rock, Texas Independent School
District, Callable 8/01/09 @100......... Aaa/AAA 4.400 8/01/11 1,811,680
1,345,000 Tennessee State, Series B............... Aaa/AAA 4.500 5/01/07 1,304,112
500,000 Tulsa, Oklahoma......................... Aa2/AA 5.150 6/01/03 505,780
3,000,000 Virginia State Public School Authority,
Series A, Callable 8/01/09 @101......... Aa1/AA+ 4.500 8/01/11 2,762,700
1,000,000 Washington State, Series A.............. Aa1/AA+ 6.700 2/01/05 1,075,290
2,000,000 Washington State, Series R-92D (Motor
Vehicle Fuel Tax)....................... Aa1/AA+ 6.250 9/01/07 2,153,900
1,500,000 Washington State, Series R-93B.......... Aa1/AA+ 5.375 10/01/08 1,536,510
------------
85,075,010
------------
HEALTHCARE--4.6%
5,625,000 Indiana Health Facility Financing
Authority Hospital Revenue-(Charity
Obligation Group), Series D, Floating
Rate Notes, mandatory put 11/01/00++.... AAA/NR 5.000 11/01/26 5,641,762
605,000 New York State Medical Care Facilities
Financial Agency, Series D, FHA
Insured+................................ Aa2/AA+ 5.100 2/15/05 604,540
1,000,000 North Carolina Medical Care Facility
(Duke University Health Systems),
Series A, Callable 6/01/08 @101......... Aa3/AA 4.600 6/01/09 934,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
104
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
----------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 2,000,000 Pennsylvania State Higher Educational
Facilities Authority-(University of
Pennsylvania Health Services),
Series B................................ A3/A 5.000% 1/01/04 $ 1,916,380
2,000,000 Tampa, Florida Revenue Health System -
Catholic Health East, MBIA Insured+..... Aaa/AAA 5.500 11/15/06 2,051,700
------------
11,148,882
------------
HOUSING--1.6%
960,000 Alaska State Housing Finance Corp.
Mortgage, Series A-1, Callable 12/01/07
@101.50, MBIA Insured+.................. Aaa/AAA 5.000 12/01/08 939,965
500,000 Connecticut State Housing Financial
Authority-Housing Mortgage Finance
Program, Series C-2..................... Aa2/AA 5.300 11/15/03 506,465
2,250,000 Housing New York Corp. Revenue.......... Aa3/AAA 6.000 11/01/03 2,328,637
------------
3,775,067
------------
INDUSTRIAL DEVELOPMENT BONDS--0.4%
1,000,000 Georgetown County, South Carolina
Pollution Control Facilities
(International Paper Company Project),
Callable 6/15/02 @102................... Baa1/BBB+ 6.250 6/15/05 1,019,210
------------
OTHER--0.1%
200,000 New York State Dormitory Authority
Revenue Metropolitan Museum of Art,
Series B, Floating Rate Notes, payable
monthly, interest rate resets weekly,
interest rate reset date 7/03/00++...... Aa1/AA+ 3.550 7/01/23 200,000
100,000 New York State Local Government
Assistance Corp., Series A, Floating
Rate Notes, payable monthly, interest
rate resets weekly, next interest rate
rest date 7/03/00++..................... Aa2/AA+ 4.350 4/01/22 100,000
------------
300,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
105
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
----------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
PRE-REFUNDED SECURITIES--4.3%
$ 85,000 Austin, Texas Utility System Revenue,
Series B, Unrefunded balance Callable
11/15/00 @100, ETM...................... A2/A 7.250% 11/15/03 $ 91,329
895,000 Illinois State Toll Highway Authority,
Callable 7/10/00 @100................... AAA/AAA 6.750 1/01/10 945,487
2,000,000 Jacksonville, Florida Health Facilities
Authority Hospital Revenue-(Charity
Obligation Group), Series C, ETM........ Aa2/NR 4.875 8/15/07 1,987,420
1,255,000 King County, Washington, Series A....... Aa1/AA+ 5.000 1/01/04 1,263,007
460,000 Manatee County, Florida Water Revenue,
Callable 7/10/00 @101................... AAA/AAA 4.200 3/01/05 453,068
155,000 Monroe County, New York, Callable
6/01/04 @102, AMBAC Insured+............ Aaa/AAA 6.000 6/01/11 161,642
1,280,000 New Jersey State Highway
Authority-Garden State Parkway General
Revenue, ETM............................ NR/AAA 6.500 1/01/11 1,369,958
2,185,000 New Jersey State Turnpike Authority
Revenue................................. AAA/NR 5.700 5/01/13 2,244,476
95,000 New Jersey State Turnpike Authority
Revenue, ETM, MBIA Insured+............. AAA/AAA 5.875 1/01/08 97,248
375,000 New Jersey State Turnpike Authority
Revenue, ETM............................ NR/AAA 10.375 1/01/03 406,159
428,437 New York State Dormitory Authority
Revenue, Series B....................... Aa1/AA+ 7.000 10/25/08 476,473
800,000 Sacramento, California Municipal Utility
District Revenue........................ AAA/AAA 5.500 2/01/11 822,808
------------
10,319,075
------------
SPECIAL TAX--7.7%
2,585,000 Chicago, Illinois Sales Tax Revenue,
FGIC Insured+........................... Aaa/AAA 6.000 1/01/07 2,724,073
510,000 Clark County, Nevada-Las Vegas
Convention and Visitors Authority, MBIA
Insured+................................ Aaa/AAA 5.400 7/01/03 519,318
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
106
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
----------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 1,000,000 Connecticut State Special Obligation
Revenue, Series B....................... A1/AA- 6.100% 9/01/08 $ 1,075,730
1,100,000 Indiana Bond Bank Revenue, Series A..... NR/AAA 5.750 2/01/06 1,144,616
2,000,000 Indianapolis Industrial Local Public
Improvement Bank, Series A.............. Aaa/AAA 5.500 2/01/08 2,063,660
2,000,000 Municipal Assistance Corp. for New York
City, Series E.......................... Aa2/AA 6.000 7/01/05 2,110,160
1,805,000 New York State Local Government
Assistance Corp., Series A.............. A3/AA- 6.000 4/01/06 1,901,477
2,000,000 New York State Local Government
Assistance Corp., Series A, Callable
4/01/07 @101, AMBAC Insured+............ Aaa/AAA 5.000 4/01/09 1,988,660
1,980,000 New York State Local Government
Assistance Corp., Series C.............. A3/AA- 6.000 4/01/12 2,108,839
3,000,000 New York, New York City Transitional
Finance Authority Revenue, Series B..... Aa3/AA 5.100 11/15/07 3,034,740
------------
18,671,273
------------
STATE APPROPRIATION--12.5%
1,980,000 Kentucky State Turnpike Authority
Economic Development Road Revenue
(Revitalization Projects), AMBAC
Insured+................................ Aaa/AAA 5.300 7/01/04 2,018,551
2,000,000 Kentucky State Turnpike Authority
Economic Development Road Revenue
(Revitalization Projects), AMBAC
Insured+................................ Aaa/AAA 5.500 7/01/08 2,067,960
1,000,000 Massachusetts Bay Transportation
Authority, Series A..................... Aa2/AA- 5.400 3/01/08 1,029,000
2,050,000 Metropolitan Transportation Authority
Facility Revenue, Series 8.............. Baa1/A 5.500 7/01/06 2,094,075
1,000,000 New York State CTFS Patnership.......... Baa1/A 5.000 3/01/04 1,000,930
2,000,000 New York State CTFS Partnership......... Baa1/A 5.000 3/01/03 2,004,320
1,980,000 New York State Dormitory Authority State
University Educational Facilities....... A3/A 5.250 5/15/10 1,982,891
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
107
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
----------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 3,000,000 New York State Dormitory Authority State
University Educational Facilities....... A/A 6.000% 5/15/07 $ 3,163,620
1,785,000 New York State Urban Development Corp.,
Revenue................................. Baa1/A 5.500 1/01/13 1,781,805
2,000,000 New York State Urban Development Corp.,
Revenue................................. A/A 5.000 1/01/07 1,983,600
1,500,000 New York State Urban Development Corp.,
Revenue................................. A/A 5.450 1/01/07 1,521,285
10,205,000 New York State Urban Development Corp.,
Revenue, Callable 1/01/08 @102.......... Baa1/A 5.000 1/01/14 9,559,611
------------
30,207,648
------------
TRANSPORTATION--7.7%
1,000,000 Central Puget Sound, Washington Transit
Authority, FGIC Insured+................ Aaa/AAA 5.250 2/01/09 1,011,660
1,150,000 Delaware Transportation Authority System
Revenue, Callable 7/01/01 @102.......... Aa3/AAA 6.125 7/01/03 1,187,478
1,500,000 Kansas State Department of
Transportation Highway Revenue,
Series A................................ Aa2/AA+ 5.375 3/01/07 1,539,150
1,750,000 Mississippi State Highway Revenue,
Series #39.............................. Aa1/AAA 5.250 6/01/08 1,781,675
2,000,000 New Jersey State Highway Authority
Garden State Parkway General Revenue.... A1/AA- 5.150 1/01/07 2,026,440
2,450,000 New Jersey State Transit Transportation
Fund, Series A.......................... Aa2/AA 5.250 6/15/08 2,492,973
1,200,000 New Jersey State Turnpike Authority
Revenue, Series C, MBIA Insured+........ Aaa/AAA 6.500 1/01/08 1,312,248
1,000,000 New York State Bridge Authority
Revenue................................. Aa3/AA- 5.000 1/01/07 1,002,750
5,000,000 New York State Thruway Authority Local
Highway & Bridge, Callable 4/01/07
@102.................................... Baa1/A 5.100 4/01/08 4,971,150
1,130,000 Triborough Bridge & Tunnel Authority,
Series Q................................ NR/A+ 6.750 1/01/09 1,243,542
------------
18,569,066
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
108
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
----------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
UTILITIES--8.8%
$ 5,000,000 Austin, Texas Utility System Revenue,
Series A, Callable 11/15/06 @100, MBIA
Insured+................................ Aaa/AAA 5.000% 5/15/07 $ 5,010,550
2,970,000 Charlotte, North Carolina Water &
Sewer................................... Aaa/AAA 5.500 5/01/03 3,030,618
610,000 Consumers Public Power District-Nuclear
Facility Revenue, Callable 7/10/00
@100.................................... A1/A+ 5.100 1/01/03 610,085
3,150,000 Dade County, Florida Water & Sewer
System Revenue, FGIC Insured+........... Aaa/AAA 6.250 10/01/07 3,408,647
990,000 Georgia Municipal Electrical Authority
Power Revenue, Series Z................. A3/A 5.000 1/01/04 992,515
1,000,000 Grant County, Washington Public Utility
District No. 002........................ Aa3/A+ 5.600 1/01/05 1,023,920
1,000,000 Houston, Texas Water Conveyance System
Contract, Series B, AMBAC Insured+...... Aaa/AAA 7.000 12/15/04 1,081,920
5,000 Jacksonville, Florida Electrical
Authority Revenue, Series Two 1987A-1,
Callable 7/10/00 @100................... Aa2/AA 7.500 10/01/02 5,012
3,500,000 Long Island Power Authority, New York
Electric System Revenue, MBIA
Insured+................................ Aaa/AAA 5.000 4/01/08 3,497,515
1,000,000 Long Island Power Authority, New York
Electric System Revenue, Series A....... Aaa/AAA 5.500 12/01/10 1,029,530
1,000,000 New York State Environmental Facilities
Corp. Pollution Control Revenue
Loan-C.................................. Aaa/AAA 5.000 7/15/04 1,012,370
705,000 South Carolina State Public Service
Authority Electrical Revenue &
Electrical System Expansion............. Aa2/AAA 4.100 7/01/06 662,538
------------
21,365,220
------------
TOTAL MUNICIPAL BONDS
(Cost $237,682,520)..................... 237,202,068
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
109
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
----------- ------------------ --------- ------------------- ------------
<C> <S> <C> <C> <C> <C>
TAX-EXEMPT MONEY MARKET FUND--0.5%
$ 1,116,648 Dreyfus Municipal Money Market Fund
(Cost $1,116,648)....................... NR/NR 3.940%(a) $ 1,116,648
------------
TOTAL INVESTMENTS
(Cost $238,799,168)(b)--98.5%........... 238,318,716
Other assets less liabilities--1.5%..... 3,514,828
------------
NET ASSETS--100.0%...................... $241,833,544
============
</TABLE>
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
ETM ESCROWED TO MATURITY
FHA FEDERAL HOUSING AUTHORITY
MBIA MUNICIPAL BOND INVESTORS ASSURANCE.
FGIC FINANCIAL GUARANTY INSURANCE COMPANY
FSA FINANCIAL SECURITY ASSURANCE
+ INSURED OR GUARANTEED BY THE INDICATED MUNICIPAL BOND INSURANCE
CORPORATION.
++ REPRESENTS INTEREST RATE IN EFFECT JUNE 30, 2000 FOR FLOATING RATES NOTES.
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED DEPRECIATION WAS $480,452 BASED
ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE GROSS
UNREALIZED APPRECIATION OF $2,827,720 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $3,308,172.
SEE NOTES TO FINANCIAL STATEMENTS.
110
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
DIVERSIFICATION BY STATE
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF
TOTAL
VALUE NET ASSETS
------------ ----------
<S> <C> <C>
Alaska.................................. $ 939,965 0.4%
California.............................. 3,813,582 1.6
Connecticut............................. 4,613,575 1.9
Delaware................................ 3,727,828 1.5
District of Columbia.................... 3,046,760 1.3
Florida................................. 7,905,847 3.3
Georgia................................. 8,196,898 3.4
Illinois................................ 16,224,809 6.7
Indiana................................. 10,421,273 4.3
Kansas.................................. 1,539,150 0.6
Kentucky................................ 4,086,511 1.7
Maryland................................ 4,253,746 1.8
Massachusetts........................... 4,556,612 1.9
Minnesota............................... 1,074,537 0.5
Mississippi............................. 1,781,675 0.7
Montana................................. 1,295,908 0.5
Nebraska................................ 610,085 0.3
Nevada.................................. 12,191,288 5.0
New Jersey.............................. 15,694,697 6.5
New York................................ 65,726,339 27.2
North Carolina.......................... 3,965,118 1.6
Ohio.................................... 1,020,960 0.4
Oklahoma................................ 505,780 0.2
Pennsylvania............................ 9,933,311 4.1
Rhode Island............................ 1,997,020 0.8
South Carolina.......................... 2,658,508 1.1
Tennessee............................... 1,304,112 0.5
Texas................................... 23,997,708 9.9
Virginia................................ 2,762,700 1.1
Washington.............................. 11,895,903 4.9
Wisconsin............................... 5,459,863 2.3
Tax-exempt money market fund (various
states)............................... 1,116,648 0.5
------------ -------
Total value of investments.............. 238,318,716 98.5
Other assets less liabilities........... 3,514,828 1.5
------------ -------
Net Assets.............................. $241,833,544 100.0%
============ =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
111
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at value (Cost $238,799,168)...................................... $ 238,318,716
Receivables:
Interest.................................................................... 3,951,979
Investments sold............................................................ 294,655
Capital stock sold.......................................................... 105,050
Deferred organization costs and other assets.................................. 29,398
--------------
TOTAL ASSETS................................................................ 242,699,798
--------------
LIABILITIES:
Payables:
Capital stock repurchased................................................... 399,036
Dividends................................................................... 271,500
Services provided by the Bank of New York and Administrator................. 161,687
Accrued expenses and other liabilities........................................ 34,031
--------------
TOTAL LIABILITIES........................................................... 866,254
--------------
NET ASSETS:..................................................................... $ 241,833,544
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 25,120
Capital surplus............................................................... 243,379,619
Undistributed net investment income........................................... 8,244
Accumulated net realized loss on investments.................................. (1,098,987)
Net unrealized depreciation on investments.................................... (480,452)
--------------
NET ASSETS...................................................................... $ 241,833,544
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 241,347,738
==============
Shares outstanding............................................................ 25,069,865
==============
Net asset value, offering price and repurchase price per share................ $ 9.63
==============
INVESTOR SHARES:
Net assets.................................................................... $ 485,806
==============
Shares outstanding............................................................ 50,424
==============
Net asset value, offering price and repurchase price per share................ $ 9.63
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 6,028,624
--------------
EXPENSES:
Advisory...................................................................... 611,085
Administration................................................................ 244,434
12b-1 fee--Investor Shares.................................................... 579
Accounting services........................................................... 29,879
Custodian..................................................................... 28,963
Transfer agent................................................................ 27,321
Organization.................................................................. 8,250
Registration and filings...................................................... 5,556
Reports to shareholders....................................................... 4,895
Legal......................................................................... 4,649
Audit......................................................................... 4,470
Insurance..................................................................... 3,237
Directors..................................................................... 2,697
Cash management............................................................... 1,621
Other......................................................................... 11,609
--------------
TOTAL EXPENSES.............................................................. 989,245
Fees waived by the Bank of New York (Note 3).................................. (22,752)
Earnings credit adjustment (Note 3)........................................... (1,233)
--------------
NET EXPENSES................................................................ 965,260
--------------
NET INVESTMENT INCOME....................................................... 5,063,364
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on:
Investments................................................................. (1,025,153)
Increase in unrealized depreciation on:
Investments during the period............................................... 3,088,831
--------------
Net realized and unrealized gain on investments............................... 2,063,678
--------------
Net increase in net assets resulting from operations.......................... $ 7,127,042
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
112
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 5,063,364 $ 10,440,458
Net realized gain (loss) on investments....................................... (1,025,153) 617,858
Increase (decrease) in unrealized appreciation (depreciation) on investments
during the period........................................................... 3,088,831 (16,412,697)
------------ ------------
Net increase in net assets resulting from operations........................ 7,127,042 (5,354,381)
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (5,054,328) (10,430,530)
Investor Shares........................... (9,036) (9,928)
Distributions from capital gains:
Institutional Shares............................. -- (1,369,621)
Investor Shares.................................. -- (2,297)
------------ ------------
(5,063,364) (11,812,376)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 24,001,596 64,061,910
Investor Shares.................................. 32,000 84,986
Proceeds from shares issued on reinvest-
ment of dividends and distributions:
Institutional Shares...................... 123,900 1,606,329
Investor Shares........................... 8,869 16,942
Cost of capital stock repurchased:
Institutional Shares............................ (36,613,755) (66,816,115)
Investor Shares................................. -- (108,514)
------------ ------------
Net decrease in net assets resulting from capital stock transactions........ (12,447,390) (1,154,462)
------------ ------------
DECREASE IN NET ASSETS.................................................... (10,383,712) (18,321,219)
NET ASSETS:
Beginning of year............................................................. 252,217,256 270,538,475
------------ ------------
End of period (includes undistributed net investment income of $5,355 at both
June 30, 2000 and December 31, 1999)........................................ $241,833,544 $252,217,256
============ ============
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 2,524,793 6,479,523
Investor Shares.................................................... 3,356 8,684
Shares issued on reinvestment of
dividends and distributions:
Institutional Shares............................. 13,028 166,776
Investor Shares.................................. 932 1,723
Shares repurchased:
Institutional Shares......................................... (3,848,405) (6,776,924)
Investor Shares.............................................. -- (10,721)
------------ ------------
Net decrease................................................................ (1,306,296) (130,939)
Shares outstanding, beginning of year......................................... 26,426,585 26,557,524
------------ ------------
Shares outstanding, end of period............................................. 25,120,289 26,426,585
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
113
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-----------------------------------------------------------
FOR THE
PERIOD
SIX MONTHS APRIL 1, 1997*
ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, 2000 -------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997
-------------- ------------ ------------ ---------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 9.54 $ 10.19 $ 10.27 $ 10.00
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.20 0.39 0.41 0.33
Net realized and unrealized gain (loss)
on investments........................ 0.09 (0.60) 0.13 0.31
-------- -------- -------- --------
Total from investment operations...... 0.29 (0.21) 0.54 0.64
-------- -------- -------- --------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment
income................................ (0.20) (0.39) (0.41) (0.33)
Distributions from capital gains........ -- (0.05) (0.21) (0.04)
-------- -------- -------- --------
Total dividends and distributions..... (0.20) (0.44) (0.62) (0.37)
-------- -------- -------- --------
Net asset value at end of period........ $ 9.63 $ 9.54 $ 10.19 $ 10.27
======== ======== ======== ========
TOTAL RETURN:........................... 3.04%** (2.06)% 5.37% 6.50%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $241,348 $251,777 $270,065 $269,085
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.79%*** 0.79% 0.83% 0.81%***
Expenses, prior to waiver from The
Bank of New York.................... 0.81%*** 0.80% 0.83% 0.81%***
Net investment income, net of waiver
from The Bank of New York........... 4.14%*** 3.96% 4.03% 4.36%***
Portfolio turnover rate................. 8% 34% 37% 30%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
114
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
---------------------------------------------------------
FOR THE
PERIOD
SIX MONTHS MAY 1, 1997*
ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, 2000 -------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997
-------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 9.55 $10.19 $10.28 $ 9.99
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.19 0.23 0.38 0.27
Net realized and unrealized gain (loss)
on investments........................ 0.07 (0.45) 0.12 0.33
------ ------ ------ ------
Total from investment operations...... 0.26 (0.22) 0.50 0.60
------ ------ ------ ------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment
income................................ (0.18) (0.37) (0.38) (0.27)
Distributions from capital gains........ -- (0.05) (0.21) (0.04)
------ ------ ------ ------
Total dividends and distributions..... (0.18) (0.42) (0.59) (0.31)
------ ------ ------ ------
Net asset value at end of period........ $ 9.63 $ 9.55 $10.19 $10.28
====== ====== ====== ======
TOTAL RETURN:........................... 2.81%** (2.22)% 4.95% 6.08%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $ 486 $ 441 $ 473 $ 194
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.04%*** 2.45% 1.13% 1.15%***
Expenses, prior to waiver from The
Bank of New York.................... 1.06%*** 2.45% 1.13% 1.15%***
Net investment income, net of waiver
from The Bank of New York........... 3.90%*** 2.31% 3.74% 3.98%***
Portfolio turnover rate................. 8% 34% 37% 30%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
115
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
---------- ------- -------- -------------------------- -----------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS--98.4%
EDUCATION--8.8%
$ 500,000 New York State Dormitory Authority,
Fordham University, MBIA Insured+....... Aaa/AAA 4.400% 7/01/06 $ 481,345
1,700,000 New York State Dormitory Authority, New
York University, Series A, MBIA
Insured+................................ Aaa/AAA 5.500 7/01/04 1,744,115
500,000 New York State Dormitory Authority,
Rochester Institute of Technology, AMBAC
Insured+................................ Aaa/AAA 5.000 7/01/13 481,940
1,350,000 New York State Dormitory Authority,
University of Rochester, Series A, MBIA
Insured+................................ Aaa/AAA 0.000 7/01/13 777,154
-----------
3,484,554
-----------
GENERAL OBLIGATIONS--14.6%
500,000 Monroe County, New York................. Aa2/AA 4.050 3/01/07 464,975
500,000 Monroe County, New York, MBIA
Insured+................................ Aaa/AAA 4.800 6/01/02 502,345
60,000 Monroe County, New York, Unrefunded
Balance, Series B....................... Aa2/AA 7.000 6/01/03 61,213
500,000 New York State.......................... A2/A+ 4.375 7/15/05 484,915
500,000 New York State.......................... A2/A+ 5.000 6/15/11 489,265
1,000,000 New York State.......................... A2/A+ 5.125 6/15/04 1,011,210
750,000 Orange County, New York................. Aa2/NR 5.000 9/01/13 726,045
750,000 Rockland County, New York............... Aa3/AA 4.400 5/01/13 667,320
990,000 Suffolk County, New York, Series B...... Aaa/AAA 4.250 4/15/10 897,197
500,000 Westchester County, New York,
Series A................................ Aaa/AAA 4.200 11/15/10 454,050
-----------
5,758,535
-----------
HEALTHCARE--3.1%
300,000 New York State Dormitory Authority,
Nursing Home Our Lady of Consolation,
FHA Insured+............................ NR/AA 5.200 8/01/05 301,806
400,000 New York State Dormitory Authority,
University of Rochester - Strong
Memorial Hospital....................... A1/A+ 5.000 7/01/02 402,040
500,000 New York State Medical Care
Facilities-Downstate Medical Center, FHA
Insured+................................ NR/AAA 5.700 2/15/04 500,255
-----------
1,204,101
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
116
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
---------- ------- -------- -------------------------- -----------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HOUSING--2.6%
$ 500,000 New York State Mortgage
Revenue--Homeowner Mtg Series 37-A...... Aa1/NR 5.850% 4/01/06 $ 515,535
500,000 New York State Mortgage
Revenue--Homeowner Mtg Series 39........ Aa1/NR 5.300 4/01/04 504,625
-----------
1,020,160
-----------
INDUSTRIAL DEVELOPMENT BONDS--4.3%
700,000 Hempstead Town--New York Industrial
Development Agency, MBIA Insured+....... Aaa/AAA 4.875 12/01/06 697,116
1,000,000 Hempstead Town--New York Industrial
Development Agency, MBIA Insured+....... Aaa/AAA 5.000 12/01/07 998,730
-----------
1,695,846
-----------
OTHER--4.9%
165,000 New York City, Trust for Cultural
Resources, MOMA, AMBAC Insured+......... Aaa/AAA 5.000 1/01/02 166,066
1,800,000 New York State Dormitory Authority,
Lease Revenue Court Facilities,
Westchester County, AMBAC Insured+...... Aa1/AA 5.125 8/01/12 1,775,214
-----------
1,941,280
-----------
PREFUNDED/ESCROW/U.S. GUARANTEED--4.2%
75,000 New York City, Trust for Cultural
Resources, MOMA, AMBAC Insured+......... Aaa/AAA 5.000 1/01/02 75,496
150,000 New York City, Trust for Cultural
Resources, MOMA, (Pre-re: 1/01/02 @102),
AMBAC Insured+.......................... Aaa/AAA 6.300 1/01/03 156,597
705,000 New York Housing Finance Agency, State
University Construction, ETM............ Aaa/AAA 6.500 11/01/06 738,354
500,000 New York State Municipal Bond Bank
Agency (City of Rochester), Series A.... NR/AAA 6.400 3/15/01 507,280
172,000 Puerto Rico Aqueduct & Sewer Authority
Revenue, ETM............................ Aaa/AAA 4.500 7/01/02 172,194
-----------
1,649,921
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
117
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
---------- ------- -------- -------------------------- -----------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
SPECIAL TAX--20.0%
$1,000,000 MTA Dedicated Tax Fund, Series A, MBIA
Insured+................................ Aaa/AAA 6.000% 4/01/05 $ 1,049,940
1,000,000 Municipal Assistance Corp. for New York
City, Series E.......................... Aa2/AA 4.800 7/01/03 1,003,880
2,000,000 Municipal Assistance Corp. for New York
City, Series E.......................... Aa2/AA 6.000 7/01/05 2,110,160
200,000 New York State Local Government
Assistance Corp., Series A.............. A3/AA- 4.250 4/01/02 198,126
340,000 New York State Local Government
Assistance Corp., Series A.............. A3/AA- 6.750 4/01/02 352,634
655,000 New York State Local Government
Assistance Corp., Series B.............. A3/AA- 5.000 4/01/02 658,989
500,000 New York State Local Government
Assistance Corp., Series E.............. A3/AA- 4.800 4/01/05 499,335
500,000 New York, New York City Transitional
Finance Authority Revenue............... Aaa/AAA 4.000 11/15/05 471,930
1,225,000 New York, New York City Transitional
Finance Authority Revenue, Series A..... Aa3/AA 5.000 8/15/05 1,238,720
300,000 New York, New York City Transitional
Finance Authority Revenue, Series B..... Aa3/AA 5.000 11/15/10 297,351
-----------
7,881,065
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
118
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
---------- ------- -------- -------------------------- -----------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
STATE APPROPRIATION--17.5%
$1,000,000 Metropolitan Transportation Authority
Service Contract Revenue, Series O...... Baa1/A 5.750% 7/01/07 $ 1,034,900
300,000 New York CTFS Partnership............... Baa1/A 4.125 9/01/04 286,356
250,000 New York State Dormitory Authority,
Albany County........................... Baa1/A 5.500 4/01/08 254,235
500,000 New York State Dormitory Authority,
Lease Revenue........................... A/A 5.500 7/01/10 510,020
500,000 New York State Dormitory Authority,
Mental Health Services.................. A/A 5.000 8/15/10 483,390
300,000 New York State Dormitory Authority,
State University, Series B.............. A3/A 5.200 5/15/03 302,850
480,000 New York State Medical Care
Facilities--Mental Health Services...... A3/A 6.100 8/15/02 491,362
505,000 New York State Medical Care
Facilities-Mental Health Services,
Series D................................ A3/A 4.700 8/15/01 504,702
750,000 New York State Thruway Authority Service
Contract, Highway & Bridge Trust Fund... Baa1/A 5.625 4/01/07 770,895
500,000 New York State Thruway Authority Service
Contract Highway & Bridge Trust Fund,
Series A, FGIC Insured+................. Aaa/AAA 5.000 4/01/10 496,535
500,000 New York State Urban Development
Corp.................................... Baa1/A 5.000 1/01/12 476,845
1,000,000 New York State Urban Development
Corp.................................... Baa1/A 5.900 1/01/07 1,028,180
250,000 New York State Urban Development Corp.,
Series B................................ Baa1/A 4.200 1/01/04 241,840
-----------
6,882,110
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
119
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE VALUE
---------- ------- -------- -------------------------- -----------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
TRANSPORTATION--10.1%
$ 500,000 Port Authority New York & New Jersey.... A1/AA- 4.750% 10/01/08 $ 487,965
500,000 Port Authority New York & New Jersey.... A1/AA- 5.100 8/01/01 503,165
1,000,000 Port Authority New York & New Jersey.... A1/AA- 5.300 8/01/03 1,014,430
500,000 Port Authority New York & New Jersey.... A1/AA- 6.100 10/15/02 515,215
400,000 Triborough Bridge & Tunnel Authority
General Purpose, Series A............... Aa3/A+ 4.600 1/01/05 395,076
1,000,000 Triborough Bridge & Tunnel Authority
General Purpose, Series Y............... Aa3/A+ 6.000 1/01/12 1,068,610
-----------
3,984,461
-----------
UTILITIES--8.3%
500,000 Long Island Power Authority, New York
Electric System Revenue, MBIA
Insured+................................ Aaa/AAA 4.600 4/01/12 459,755
1,000,000 Long Island Power Authority, New York
Electric System Revenue, Series A, AMBAC
Insured+................................ Aaa/AAA 5.500 12/01/10 1,029,530
300,000 New York State Environmental Facilities
Corp., State Water, Series D, PCR State
Water................................... Aaa/AAA 6.000 5/15/02 307,824
1,000,000 New York State Power Authority Revenue &
General Purpose, Series A............... Aa3/AA- 4.250 2/15/04 975,040
500,000 Suffolk County, New York Water
Authority, Waterworks Revenue, MBIA
Insured+................................ Aaa/AAA 5.100 6/01/07 505,790
-----------
3,277,939
-----------
TOTAL MUNICIPAL BONDS
(Cost $38,964,428)...................... 38,779,972
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
120
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST
AMOUNT RATINGS RATE VALUE
---------- --------- ---------- -----------
<C> <S> <C> <C> <C>
TAX-EXEMPT MONEY MARKET FUND--0.1%
$ 56,874 Dreyfus New York Municipal Cash
Management
(Cost $56,874).......................... NR/NR 4.240%(a) $ 56,874
TOTAL INVESTMENTS
(Cost $39,021,302)(b)--98.5%............ 38,836,846
Other assets less liabilities--1.5%..... 569,969
-----------
NET ASSETS--100.0%...................... $39,406,815
===========
</TABLE>
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
ETM ESCROWED TO MATURITY
FHA FEDERAL HOUSING AUTHORITY
MBIA MUNICIPAL BOND INVESTORS ASSURANCE.
FGIC FINANCIAL GUARANTY INSURANCE COMPANY
PCR POLLUTION CONTROL REVENUE.
+ INSURED OR GUARANTEED BY THE INDICATED MUNICIPAL BOND INSURANCE
CORPORATION.
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED DEPRECIATION WAS $184,456 BASED
ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE GROSS
UNREALIZED APPRECIATION OF $253,607 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $438,063.
SEE NOTES TO FINANCIAL STATEMENTS.
121
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at value
(Cost $39,021,302).......................................................... $ 38,836,846
Receivables:
Interest.................................................................... 645,413
Investments sold............................................................ 29,963
Capital stock sold.......................................................... 1,890
--------------
TOTAL ASSETS................................................................ 39,514,112
--------------
LIABILITIES:
Payables:
Dividends................................................................... 43,784
Capital stock repurchased................................................... 31,825
Services provided by the Bank of New York and Administrator................. 22,367
Accrued expenses and other liabilities........................................ 9,321
--------------
TOTAL LIABILITIES........................................................... 107,297
--------------
NET ASSETS:..................................................................... $ 39,406,815
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 3,872
Capital surplus............................................................... 39,634,033
Accumulated net realized loss on investments.................................. (46,634)
Net unrealized depreciation on investments.................................... (184,456)
--------------
NET ASSETS...................................................................... $ 39,406,815
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 31,767,402
==============
Shares outstanding............................................................ 3,121,653
==============
Net asset value, offering price and repurchase price per share................ $ 10.18
==============
INVESTOR SHARES:
Net assets.................................................................... $ 7,639,413
==============
Shares outstanding............................................................ 750,569
==============
Net asset value, offering price and repurchase price per share................ $ 10.18
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
Investor Shares authorized @ $.001 par value.................................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 969,975
--------------
EXPENSES:
Advisory...................................................................... 97,777
Administration................................................................ 39,111
12b-1 fee--Investor Shares.................................................... 9,567
Accounting services........................................................... 29,883
Transfer agent................................................................ 18,276
Custodian..................................................................... 6,086
Registration and filings...................................................... 3,808
Directors..................................................................... 2,697
Audit......................................................................... 1,872
Reports to shareholders....................................................... 767
Legal......................................................................... 499
Cash management............................................................... 258
Other......................................................................... 3,919
--------------
TOTAL EXPENSES.............................................................. 214,520
Fees waived by the Bank of New York (Note 3).................................. (50,462)
--------------
NET EXPENSES................................................................ 164,058
--------------
NET INVESTMENT INCOME....................................................... 805,917
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments.............................................. 3,131
Increase in unrealized depreciation on investments during the period.......... 301,290
--------------
Net realized and unrealized gain on investments............................... 304,421
--------------
Net increase (decrease) in net assets resulting from operations............... $ 1,110,338
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
122
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 805,917 $ 1,641,079
Net realized gain on investments.............................................. 3,131 (49,779)
Increase (decrease) in unrealized appreciation (depreciation) on investments
during the period........................................................... 301,290 (2,215,741)
----------- -----------
Net increase (decrease) in net assets resulting from operations............. 1,110,338 (624,441)
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Institutional Shares...................... (655,466) (1,256,942)
Investor Shares........................... (150,451) (384,137)
Distributions from capital gains:
Institutional Shares............................. -- (4,399)
Investor Shares.................................. -- (1,125)
----------- -----------
(805,917) (1,646,603)
----------- -----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Institutional Shares............................. 3,074,596 14,403,180
Investor Shares.................................. 411,005 5,775,900
Proceeds from shares issued on reinvestment
of dividends and distributions: Institutional Shares........................ 154,348 283,918
Investor Shares.................................. 111,968 313,288
Cost of capital stock repurchased:
Institutional Shares............................ (3,153,459) (13,049,833)
Investor Shares................................. (973,971) (9,076,460)
----------- -----------
Net decrease in net assets resulting from capital stock transactions........ (375,513) (1,350,007)
----------- -----------
DECREASE IN NET ASSETS.................................................... (71,092) (3,621,051)
NET ASSETS:
Beginning of year............................................................. 39,477,907 43,098,958
----------- -----------
End of period................................................................. $39,406,815 $39,477,907
=========== ===========
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Institutional Shares............................................... 305,071 1,373,783
Investor Shares.................................................... 40,868 543,117
Shares issued on reinvestment of dividends
and distributions: Institutional Shares..................................... 15,319 27,332
Investor Shares............................................. 11,113 30,026
Shares repurchased:
Institutional Shares......................................... (312,116) (1,246,311)
Investor Shares.............................................. (96,532) (865,068)
----------- -----------
Net increase................................................................ (36,277) (137,121)
Shares outstanding, beginning of year......................................... 3,908,499 4,045,620
----------- -----------
Shares outstanding, end of period............................................. 3,872,222 3,908,499
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
123
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
-------------------------------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, APRIL 1, 1997*
JUNE 30, 2000 ------------------------ THROUGH
(UNAUDITED) 1999 1998 DECEMBER 31, 1997
---------------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 10.10 $ 10.65 $ 10.52 $ 10.16
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.20 0.41 0.41 0.31
Net realized and unrealized gain (loss)
on investments........................ 0.09 (0.55) 0.14 0.36
------- ------- ------- -------
Total from investment operations...... 0.29 (0.14) 0.55 0.67
------- ------- ------- -------
DIVIDENDS AND DISTRIBUTION
Dividends from net investment income.... (0.21) (0.41) (0.41) (0.31)
Distribution from capital gains......... -- -- (0.01) --
------- ------- ------- -------
Total dividends and distribution...... (0.21) (0.41) (0.42) (0.31)
------- ------- ------- -------
Net asset value at end of period........ $ 10.18 $ 10.10 $ 10.65 $ 10.52
======= ======= ======= =======
TOTAL RETURN:........................... 2.90%** (1.35)% 5.30% 6.69%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)....................... $31,767 $31,446 $31,519 $30,915
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.79%*** 0.82% 0.90% 0.90%***
Expenses, prior to waiver from The
Bank of New York.................... 1.05%*** 1.07% 1.07% 1.15%***
Net investment income, net of waiver
from The Bank of New York........... 4.17%*** 3.93% 3.85% 3.98%***
Portfolio turnover rate................. 3% 32% 24% 21%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
124
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
--------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 -------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
---------------- ----------- ----------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of year.... $10.10 $10.65 $ 10.52 $ 10.29 $ 10.34 $ 9.59
------ ------ ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.21 0.38 0.38 0.39 0.40 0.39
Net realized and unrealized gain (loss)
on investments........................ 0.07 (0.55) 0.14 0.23 (0.05) 0.75
------ ------ ------- ------- ------- -------
Total from investment operations...... 0.28 (0.17) 0.52 0.62 0.35 1.14
------ ------ ------- ------- ------- -------
DIVIDENDS AND DISTRIBUTION
Dividends from net investment income.... (0.20) (0.38) (0.38) (0.39) (0.40) (0.39)
Distribution from capital gains......... -- -- (0.01) -- -- --
------ ------ ------- ------- ------- -------
Total dividends and distribution...... (0.20) (0.38) (0.39) (0.39) (0.40) (0.39)
------ ------ ------- ------- ------- -------
Net asset value at end of year.......... $10.18 $10.10 $ 10.65 $ 10.52 $ 10.29 $ 10.34
====== ====== ======= ======= ======= =======
TOTAL RETURN:+.......................... 2.77%** (1.60)% 5.04% 6.19% 3.47% 12.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year
(000's omitted)....................... $7,639 $8,032 $11,580 $10,368 $36,737 $40,931
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.03%*** 1.07% 1.15% 1.02% 0.90% 0.90%
Expenses, prior to waiver from The
Bank of New York.................... 1.29%*** 1.30% 1.32% 1.32% 1.18% 1.20%
Net investment income, net of waiver
from The Bank of New York........... 3.93%*** 3.65% 3.61% 3.88% 3.91% 3.89%
Portfolio turnover rate................. 3% 32% 24% 21% 22% 4%
</TABLE>
+ TOTAL RETURN DOES NOT CONSIDER THE EFFECT OF THE SALES LOAD FOR THOSE
PERIODS IN WHICH THE SALES LOAD WAS IN EFFECT.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
125
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
COMMERCIAL PAPER--47.9%
ASSET BACKED SECURITIES--4.4%
$ 8,825,990 CNH Equipment Trust, 2000-A A1,
6.178%, 4/09/01......................... $ 8,825,990
30,000,000 FCAOT, 2000-C A2, 0.00%, 3/15/01........ 30,000,000
13,208,063 FORDO, 00-A,
6.217%, 12/15/00........................ 13,208,063
41,537,000 Kimberly Clark,
6.58%, 8/10/00.......................... 41,233,318
25,000,000 Kitty Hawk Funding Corp., 6.58%,
9/11/00................................. 24,671,000
31,721,000 MetLife Funding, Inc., 6.55%, 8/03/00... 31,530,542
20,000,000 OKST Kontrollbic, 6.66%, 11/16/00....... 19,489,400
35,000,000 Sand Dollar Funding LLC, 6.64%,
8/04/00................................. 34,780,511
--------------
203,738,824
--------------
ASSET BACKED SECURITIES--CREDIT CARDS--0.9%
41,000,000 Riverwoods Funding, 6.52%, 7/06/00...... 40,962,872
--------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
ASSET BACKED SECURITIES--TRADE
AND LEASE RECEIVABLES
(PARTIAL SUPPORT)--3.6%
$ 20,587,000 Barton Capital,
6.53%, 7/10/00.......................... $ 20,553,392
40,000,000 Ciesco, 6.40%, 7/11/00.................. 39,928,889
40,000,000 CXC, Inc.,
6.63%, 8/28/00.......................... 39,572,733
25,000,000 Monta Rosa,
6.57%, 7/18/00.......................... 24,922,437
25,000,000 Sheffield Receivables Corp., 6.68%,
12/15/00................................ 24,225,306
20,000,000 Windmill Funding II, 6.61%, 7/13/00..... 19,955,933
--------------
169,158,690
--------------
CHEMICALS--BASIC--0.6%
30,000,000 duPont (E.I.) de Nemours & Co., 6.59%,
8/17/00................................. 29,741,892
--------------
CHEMICALS--DIVERSIFIED--0.5%
25,000,000 BASF AG,
6.60%, 8/28/00.......................... 24,734,167
--------------
COMMERCIAL SERVICES--0.9%
40,000,000 Anhriver
6.55%, 9/06/00.......................... 39,512,389
--------------
COMMUNICATIONS AND
ENTERTAINMENT--1.1%
50,000,000 Gannet Co.,
6.50%, 7/10/00.......................... 49,918,750
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
126
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
COMPUTERS--1.1%
$ 50,000,000 International Business Machines,
6.51%, 7/11/00.......................... $ 49,909,583
--------------
COSMETICS & TOILETRIES--1.1%
50,000,000 Gillette Company,
6.57%, 8/10/00.......................... 49,635,000
--------------
ELECTRICAL EQUIPMENT--1.2%
47,000,000 Emerson Electric Co., 6.52%, 7/21/00.... 46,829,756
8,000,000 Emerson Electric Co., 6.606%,
6/06/01+................................ 8,000,000
--------------
54,829,756
--------------
FINANCE COMPANIES--2.0%
30,000,000 GE Capital,
6.04%, 8/24/00.......................... 29,728,200
30,000,000 GE Capital,
6.64%, 2/27/01.......................... 28,666,467
25,000,000 KFW International Finance,
6.56%, 10/03/00......................... 24,571,778
10,000,000 Pitney Bowes Credit Corp., 5.95%,
9/29/00................................. 10,000,000
--------------
92,966,445
--------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
FINANCIAL SERVICES--2.4%
$ 25,000,000 Goldman Sachs, Inc., 6.56%, 8/18/00..... $ 24,781,333
30,000,000 Govco, Inc.,
6.60%, 7/18/00.......................... 29,906,500
25,000,000 Merrill Lynch & Co., 6.127%, 7/10/00.... 24,961,750
30,000,000 Merrill Lynch & Co., 6.58%, 10/26/00.... 29,358,450
--------------
109,008,033
--------------
FINANCIAL SERVICES--DIVERSIFIED--3.1%
40,000,000 American Express Centurion Bank,
6.56%, 7/24/00.......................... 39,832,356
40,000,000 Citigroup, Inc.,
6.55%, 10/12/00......................... 39,250,389
25,000,000 Corporate Recivables Corp., 6.60%,
8/21/00................................. 24,766,250
15,000,000 Paccar Finance Corp., 6.58%, 9/18/00.... 14,783,408
25,000,000 Paccar Finance Corp., 6.58%, 9/21/00.... 24,625,306
--------------
143,257,709
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
127
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
FOOD & BEVERAGES--3.0%
$ 20,000,000 Campbell,
6.01%, 7/07/00.......................... $ 19,979,767
20,000,000 Campbell,
6.60%, 12/13/00......................... 19,395,000
40,000,000 Coca-Cola,
6.46%, 7/11/00.......................... 39,928,222
40,000,000 Heinz (HJ),
6.55%, 8/17/00.......................... 39,657,944
21,993,000 Hershey Foods,
6.55%, 8/28/00.......................... 21,760,913
--------------
140,721,846
--------------
FOOD PROCESSING--2.1%
24,250,000 Archer-Daniels-Midland Co., 6.12%,
7/18/00................................. 24,179,918
25,000,000 Archer-Daniels-Midland Co., 6.56%,
9/11/00................................. 24,672,000
50,000,000 Sara Lee Corp.,
6.52%, 7/11/00.......................... 49,909,444
--------------
98,761,362
--------------
INSURANCE--0.5%
25,000,000 Marsh USA, Inc.,
6.61%, 10/11/00......................... 24,531,792
--------------
INSURANCE--NON-HEALTH AND
LIFE--1.2%
10,000,000 Aegon Funding Corp., 6.63%, 12/12/00.... 9,697,967
47,000,000 AIG Funding, Inc., 6.12%, 7/17/00....... 46,872,160
--------------
56,570,127
--------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
MANUFACTURING--0.5%
$ 25,000,000 Minnesota Mining & Manufacturing,
6.04%, 7/12/00.......................... $ 24,953,861
--------------
MEDICAL CARE AND PRODUCTS--0.6%
30,000,000 Glaxo-Wellcome Co., 6.58%, 8/15/00...... 29,753,250
--------------
MEDICAL PRODUCTS AND SUPPLIES--0.6%
26,570,000 Abbott Laboratories, 6.56%, 7/06/00..... 26,545,792
--------------
NON-BANK HOLDING
COMPANIES--1.4%
20,000,000 USAA, 6.08%, 7/14/00.................... 19,956,089
20,000,000 USAA, 6.62%, 8/18/00.................... 19,823,467
25,000,000 USAA, 6.56%, 9/18/00.................... 24,640,111
--------------
64,419,667
--------------
OIL--2.1%
46,000,000 Chevron,
6.75%, 7/06/00.......................... 45,956,875
50,000,000 Koch Industries, Inc., 6.85%, 7/05/00... 49,961,944
--------------
95,918,819
--------------
PHARMACEUTICALS--2.2%
60,000,000 Merck, 6.70%, 7/05/00................... 59,955,333
42,100,000 Pfizer, 6.54%, 8/01/00.................. 41,862,907
--------------
101,818,240
--------------
PRINTING AND PUBLISHING--0.6%
30,000,000 Reed Elsevier, Inc., 6.55%, 7/19/00..... 29,901,750
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
128
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
RETAIL--DISCOUNT STORES--1.2%
$ 35,740,000 Wal-Mart Stores, Inc., 6.50%, 7/17/00... $ 35,636,751
20,000,000 Wal-Mart Stores, Inc., 6.60%, 9/11/00... 19,736,000
--------------
55,372,751
--------------
RETAIL--SPECIALTY STORES--0.5%
24,960,000 St. Michael Finance Ltd., 6.55%,
7/13/00................................. 24,905,504
--------------
SOAPS--0.5%
25,000,000 Clorox, Co.,
6.08%, 7/05/00.......................... 24,983,111
--------------
TECHNOLOGY INDUSTRIES--1.3%
20,000,000 Motorola Corp.,
6.15%, 7/10/00.......................... 19,969,250
40,000,000 Motorola Corp.,
6.58%, 7/27/00.......................... 39,809,911
--------------
59,779,161
--------------
TELECOMMUNICATIONS--1.1%
35,000,000 AT&T Corp.,
6.59%, 10/25/00......................... 34,256,794
15,000,000 AT&T Corp.,
6.566%, 3/08/01+........................ 14,996,817
--------------
49,253,611
--------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
UTILITIES--ELECTRIC--1.7%
$ 25,000,000 National Rural Utilities Cooperative
Finance, 6.05%, 7/13/00................. $ 24,949,583
30,000,000 National Rural Utilities Cooperative
Finance, 6.67%, 3/12/01................. 28,588,183
27,000,000 Tampa Electric Co., 6.49%, 7/06/00...... 26,975,663
--------------
80,513,429
--------------
UTILITIES--TELECOMMUNICATIONS--3.9%
30,930,000 Bell Atlantic,
6.63%, 8/03/00.......................... 30,742,023
41,000,000 BellSouth Telecommunications, Inc,
6.53%, 8/29/00.......................... 40,561,220
38,600,000 British Telecommunications, Inc., 6.13%,
8/29/00................................. 38,212,209
10,000,000 British Telecommunications, Inc.,
6.624%, 2/27/01+........................ 10,000,000
30,000,000 SBC Communications, Inc., 6.08%,
7/06/00................................. 29,974,667
30,000,000 SBC Communications, Inc., 6.55%,
9/18/00................................. 29,568,792
--------------
179,058,911
--------------
TOTAL COMMERCIAL PAPER
(Cost $2,225,137,094)................... 2,225,137,094
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
129
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
TIME DEPOSITS--12.3%
BANKS--DOMESTIC INSTITUTIONS--10.4%
$ 60,000,000 Banc One Corp.,
7.07%, 7/03/00.......................... $ 60,000,000
90,000,000 Fifth Third Bank, 6.875%, 7/03/00....... 90,000,000
84,494,000 Huntington National Bank, 7.00%,
7/03/00................................. 84,494,000
65,000,000 Lasalle National Bank, 7.00%, 7/03/00... 65,000,000
90,000,000 Sun Trust Banks, Inc., 6.875%,
7/03/00................................. 90,000,000
90,000,000 Wachovia Bank NA, 7.00%, 7/03/00........ 90,000,000
--------------
479,494,000
--------------
BANKS--FOREIGN INSTITUTIONS--1.9%
90,000,000 Dresdner Bank AG, 7.125%, 7/03/00....... 90,000,000
--------------
TOTAL TIME DEPOSITS
(Cost $569,494,000)..................... 569,494,000
--------------
</TABLE>
<TABLE>
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES &
OBLIGATIONS--11.2%
FEDERAL HOME LOAN BANK--2.3%
25,741,000 6.40%, 7/19/00.......................... 25,658,629
15,000,000 6.495%, 2/15/01......................... 14,990,784
15,000,000 6.465%, 2/16/01......................... 14,992,176
10,000,000 6.76%, 3/13/01.......................... 10,000,000
20,000,000 7.00%, 5/18/01.......................... 19,998,241
20,000,000 7.00%, 6/14/01.......................... 20,021,683
--------------
105,661,513
--------------
PRINCIPAL
AMOUNT VALUE
------------ --------------
UNITED STATES GOVERNMENT AGENCIES &
OBLIGATIONS (CONTINUED)
FEDERAL HOME LOAN MORTGAGE CORP.--3.4%
$ 25,000,000 5.86%, 7/20/00.......................... $ 24,922,681
40,000,000 5.86%, 7/20/00+......................... 39,871,433
26,668,000 6.06%, 9/14/00.......................... 26,331,316
45,000,000 6.51%, 9/21/00.......................... 44,332,725
15,000,000 6.255%, 1/12/01......................... 14,990,889
7,000,000 6.48%, 6/14/01+......................... 6,564,040
--------------
157,013,084
--------------
FEDERAL NATIONAL MORTGAGE
ASSOC.--4.2%
25,000,000 5.82%, 7/13/00.......................... 24,951,500
30,000,000 6.422%, 8/03/00......................... 29,837,750
30,000,000 5.90%, 8/17/00+......................... 29,768,917
10,000,000 5.90%, 12/01/00......................... 9,992,705
15,000,000 5.00%, 12/04/00......................... 14,922,114
40,000,000 6.50%, 12/07/00......................... 38,851,667
13,406,000 6.52%, 3/16/01.......................... 13,396,147
15,000,000 7.26%, 5/24/01.......................... 15,000,000
20,000,000 6.53%, 5/25/01.......................... 18,810,089
--------------
195,530,889
--------------
UNITED STATES TREASURY BILLS--0.4%
20,000,000 5.73%, 8/10/00.......................... 19,872,556
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
130
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES &
OBLIGATIONS (CONTINUED)
UNITED STATES TREASURY NOTES--0.9%
$ 10,000,000 5.75%, 10/31/00......................... $ 9,997,731
10,000,000 4.625%, 12/31/00........................ 9,926,126
10,000,000 5.25%, 1/31/01.......................... 9,938,622
15,000,000 6.50%, 5/31/01.......................... 14,983,101
--------------
44,845,580
--------------
TOTAL UNITED STATES GOVERNMENT AGENCIES
& OBLIGATIONS
(Cost $522,923,622)..................... 522,923,622
--------------
</TABLE>
<TABLE>
<C> <S> <C>
CERTIFICATES OF DEPOSIT--8.6%
BANKING--0.6%
20,000,000 Regions Bank,
6.10%, 7/06/00.......................... 20,000,000
10,000,000 Regions Bank,
6.09%, 10/10/00......................... 9,998,680
--------------
29,998,680
--------------
PRINCIPAL
AMOUNT VALUE
------------ --------------
CERTIFICATES OF DEPOSIT (CONTINUED)
BANKS--DOMESTIC INSTITUTIONS--4.4%
$ 20,000,000 Citibank,
7.41%, 5/30/01.......................... $ 20,000,000
25,000,000 Firstar Corp.,
6.70%, 9/28/00.......................... 25,000,000
20,000,000 Harris Trust Bank of Chicago, 6.57%,
7/06/00................................. 20,000,000
30,000,000 Harris Trust Bank of Chicago, 6.69%,
9/28/00................................. 30,000,000
10,000,000 Michigan National Bank, 6.20%,
7/17/00................................. 10,000,043
10,000,000 Michigan National Bank, 6.30%,
9/08/00................................. 9,999,837
10,000,000 Michigan National Bank, 5.98%,
9/22/00................................. 9,999,131
20,000,000 Michigan National Bank, 6.92%,
12/13/00................................ 20,000,000
10,000,000 Morgan (J.P.) & Co., Inc., 5.75%,
7/10/00................................. 10,000,000
25,000,000 Northern Trust Corp., 6.28%, 8/09/00.... 25,000,000
25,000,000 State Street Corp., 6.65%, 9/15/00...... 25,000,000
--------------
204,999,011
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
131
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
CERTIFICATES OF DEPOSIT (CONTINUED)
BANKS--FOREIGN INSTITUTIONS--3.6%
$ 20,000,000 Austria New Zeland, 6.30%, 9/14/00...... $ 20,000,000
15,000,000 Bank of Austria,
6.71%, 2/05/01.......................... 14,992,497
15,000,000 Bayerische Landesbank, 6.595%,
11/09/00+............................... 14,996,242
20,000,000 Bayerische Landesbank, 6.576%,
12/15/00+............................... 19,992,243
12,000,000 Landes Schleswig,
5.92%, 9/29/00.......................... 11,966,718
10,000,000 Rabobank Nederland NV NY, 5.64%,
7/20/00................................. 9,998,591
20,000,000 Rabobank Nederland NV NY, 6.51%,
1/31/01................................. 19,994,427
5,000,000 Royal Bank of Canada, 6.45%, 1/05/01.... 4,998,775
5,000,000 Royal Bank of Canada, 6.47%, 1/18/01.... 4,998,429
20,000,000 Royal Bank of Canada, 7.41%, 5/22/01.... 20,000,000
10,000,000 United Bank of Switzerland AG,
6.24%, 12/06/00......................... 9,999,543
15,000,000 United Bank of Switzerland AG,
6.53%, 1/18/01.......................... 14,995,881
--------------
166,933,346
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $401,931,037)..................... 401,931,037
--------------
</TABLE>
<TABLE>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
FLOATING RATE BANK SECURITIES--3.2%
BANK HOLDING COMPANIES--2.8%
$ 15,000,000 American Express Centurion Bank, 6.60%,
payable monthly, interest rate resets
monthly, next rate reset date 7/10/00,
final maturity date 5/09/01+............ $ 15,000,000
15,000,000 Associates Corp. of North America,
6.44%, payable monthly, interest rate
resets monthly, next rate reset date
7/17/00, final maturity date 3/16/01+... 14,993,788
10,000,000 Banc One Corp., 6.42%, payable
quarterly, interest rate resets
quarterly, next rate reset date 7/17/00,
final maturity date 1/16/01+............ 10,005,819
15,000,000 Banc One Corp., 6.68%, payable monthly,
interest rate resets monthly, next rate
reset date 7/10/00, final maturity date
1/03/01+................................ 15,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
132
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
FLOATING RATE BANK SECURITIES (CONTINUED)
$ 14,000,000 Citicorp, 6.68%, payable monthly,
interest rate resets monthly, next rate
reset date 7/03/00, final maturity date
8/02/00+................................ $ 13,999,516
15,000,000 Citigroup, Inc., 6.62%, payable monthly,
interest rate resets monthly, final
maturity date 4/04/01+.................. 15,000,000
15,000,000 Morgan (J.P.) & Co., Inc., 6.61%,
payable monthly, interest rate resets
monthly, final maturity date 7/06/00+... 14,999,965
10,000,000 Morgan (J.P.) & Co., Inc., 6.63%,
payable monthly, interest rate resets
monthly, next rate reset date 7/06/00,
final maturity date 6/06/01+............ 10,000,000
20,000,000 Wells Fargo Co., 6.76%, payable
quarterly, interest rate resets
quarterly, next rate reset 10/24/00,
final maturity date 7/24/01+............ 19,991,745
--------------
128,990,833
--------------
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
FLOATING RATE BANK SECURITIES (CONTINUED)
BANK NOTE--0.4%
$ 20,000,000 First Union National Bank, 6.64%,
payable monthly, interest rate resets
monthly, next rate reset date 7/27/00,
final maturity date 9/27/00+............ $ 20,000,000
--------------
TOTAL FLOATING RATE BANK SECURITIES
(Cost $148,990,833)..................... 148,990,833
--------------
</TABLE>
<TABLE>
<C> <S> <C>
CORPORATE BONDS--0.6%
BANKS--DOMESTIC INSTITUTIONS--0.6%
25,000,000 Lasalle National Bank, 5.65%, 7/17/00... 24,999,475
5,270,000 NationsBank,
5.70%, 9/11/00.......................... 5,265,932
--------------
TOTAL CORPORATE BONDS
(Cost $30,265,407)...................... 30,265,407
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
133
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
REPURCHASE AGREEMENTS--16.5%
REPURCHASE AGREEMENT WITH BARCLAYS CAPITAL, INC.--3.0%
$140,000,000 6.70%, dated 6/30/00, due 7/03/00,
repurchase price $140,078,167
(Collateral-FFCB Notes, 5.45%-6.625%,
8/02/00-2/01/02, FNMA Note, 6.25%,
11/15/02; aggregate market value plus
accrued interest $142,800,138).......... $ 140,000,000
REPURCHASE AGREEMENT WITH DEUTSCHE BANK SECURITIES
INC.--2.8%
130,000,000 6.80%, dated 6/30/00, due 7/03/00,
repurchase price $130,073,667
(Collateral-FHLB Notes, 5.75%-6.75%,
5/01/02-11/24/03, FNMA Discount Note,
0.00%, 10/05/00, IADB, 7.00%, 6/16/03;
aggregate market value plus accrued
interest $132,600,594).................. 130,000,000
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
REPURCHASE AGREEMENT WITH J.P. MORGAN SECURITIES,
INC.--3.9%
$180,000,000 6.80%, dated 6/30/00, due 7/03/00,
repurchase price $180,102,000
(Collateral-FNMA Notes, 6.00%-6.625%,
5/15/08-9/15/09; aggregate market value
plus accrued interest $183,600,568)..... $ 180,000,000
REPURCHASE AGREEMENT WITH MORGAN STANLEY DEAN
WITTER--3.8%
175,000,000 6.75%, dated 6/30/00, due 7/03/00,
repurchase price $175,098,438
(Collateral-ADBB, 5.50%, 4/23/04, FHLMC
Notes, 0.00%-7.30%, 7/20/00-5/07/18,
FNMA Notes, 0.00%-9.20%,
9/11/00-1/13/11, IADB Bonds,
5.375%-7.375%, 2/26/08-1/15/10, UST
Note, 3.875%, 1/15/09, WLDB Bonds,
6.375%-9.25%, 7/21/05-7/15/17; aggregate
market value plus accrued interest
$178,991,981)........................... 175,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
134
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
------------ --------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
REPURCHASE AGREEMENT WITH SALOMON SMITH BARNEY--3.0%
$140,000,000 6.80%, dated 6/30/00, due 7/03/00,
repurchase price $140,079,333
(Collateral-FHLB Notes, 0.00%-6.00%,
7/07/00-7/20/05, FHLMC Notes,
5.50%-8.50%, 4/15/01-5/15/30; FNMA
Notes, 5.42%-10.00%, 9/25/00-8/18/28;
aggregate market value plus accrued
interest $143,091,745).................. $ 140,000,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $765,000,000)..................... 765,000,000
--------------
</TABLE>
<TABLE>
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $4,663,741,993)(a)--
100.3%.................................. 4,663,741,993
Liabilities in excess of other
assets--(0.3%).......................... (15,707,082)
--------------
NET ASSETS--100.0%...................... $4,648,034,911
==============
</TABLE>
+ REPRESENTS YIELD AT TIME OF PURCHASE FOR COMMERICAL PAPER, DISCOUNTED RATE
A TIME OF PURHCASE FOR UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS, AND
INTEREST RATE IN EFFECT AT JUNE 30, 2000 FOR FLOATING RATE NOTES.
ADBB AFRICAN DEVELOPMENT BANK BOND.
FFCB FEDERAL FARM CREDIT BANK.
FHLB FEDERAL HOME LOAN BANK.
FHLMC FEDERAL HOME LOAN MORTGAGE CORP.
FNMA FEDERAL NATIONAL MORTGAGE ASSOCIATION.
IADB INTERAMERICAN DEVELOPMENT BOARD.
UST UNITED STATES TREASURY.
WLBD WORLD DEVELOPMENT BOND.
(a) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES.
SEE NOTES TO FINANCIAL STATEMENTS.
135
<PAGE>
BNY HAMILTON MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at value, (Cost $4663,741,993).................................... $4,663,741,993
Receivables:
Securities sold............................................................. 1,443,852,291
Capital stock sold.......................................................... 204,288,460
Interest.................................................................... 12,456,833
Other assets.................................................................. 135,488
--------------
TOTAL ASSETS................................................................ 6,324,475,065
--------------
LIABILITIES:
Payables:
Investments purchased....................................................... 1,484,173,771
Capital stock repurchased................................................... 168,867,352
Dividends................................................................... 20,040,568
Due to custodian............................................................ 1,944,006
Services provided by the Bank of New York and Administrator................. 1,265,062
Accrued expenses and other liabilities........................................ 149,395
--------------
TOTAL LIABILITIES........................................................... 1,676,440,154
--------------
NET ASSETS:..................................................................... $4,648,034,911
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 4,648,029
Capital surplus............................................................... 4,643,378,287
Accumulated net realized gain on investments.................................. 8,595
--------------
NET ASSETS...................................................................... $4,648,034,911
==============
HAMILTON SHARES:
Net assets.................................................................... $2,615,043,988
==============
Shares outstanding............................................................ 2,615,043,401
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
HAMILTON PREMIER SHARES:
Net assets.................................................................... $1,151,519,955
==============
Shares outstanding............................................................ 1,151,512,382
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
HAMILTON CLASSIC SHARES:
Net assets.................................................................... $ 881,470,968
==============
Shares outstanding............................................................ 881,473,862
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
Hamilton Shares authorized @ $.001 par value.................................... 5,000,000,000
Hamilton Premier authorized @ $.001 par value................................... 3,000,000,000
Hamilton Classic authorized @ $.001 par value................................... 3,000,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 115,151,102
--------------
EXPENSES:
Advisory...................................................................... 1,888,273
Administration................................................................ 1,888,273
12b-1 fee--Classic Shares..................................................... 1,143,839
Servicing fee:
Hamilton Premier Shares........................................... 1,264,481
Hamilton Classic.................................................. 1,143,839
Registration and filings...................................................... 154,702
Custodian..................................................................... 128,050
Transfer agent................................................................ 83,038
Reports to shareholders....................................................... 78,416
Legal......................................................................... 47,445
Insurance..................................................................... 39,238
Audit......................................................................... 35,185
Accounting services........................................................... 29,879
Cash management............................................................... 16,649
Directors..................................................................... 2,697
Other......................................................................... 105,169
--------------
TOTAL EXPENSES.............................................................. 8,049,173
Earnings credit adjustment (Note 3)........................................... (14,761)
--------------
NET EXPENSES................................................................ 8,034,412
--------------
NET INVESTMENT INCOME....................................................... 107,116,690
Net realized gain on investments.............................................. 32
--------------
Net increase in net assets resulting
from operations............................................................. $ 107,116,722
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
136
<PAGE>
BNY HAMILTON MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 107,116,690 $ 143,536,762
Net realized gain on investments.............................................. 32 8,555
--------------- ---------------
Net increase in net assets resulting from operations........................ 107,116,722 143,545,317
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income:
Hamiltons Shares............................ (54,289,765) (76,653,154)
Hamilton Premier Shares..................... (28,393,072) (38,415,385)
Hamilton Classic Shares..................... (24,433,853) (28,466,647)
--------------- ---------------
(107,116,690) (143,535,186)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Hamilton Shares................................... 5,046,185,803 5,967,303,526
Hamilton Premier Shares........................... 7,447,561,492 7,643,411,324
Hamilton Classic Shares........................... 4,689,557,642 7,996,889,396
Proceeds from shares issued on reinvestment of dividends:
Hamilton Shares.............. 13,149,587 16,409,278
Hamilton Premier Shares...... 9,463,873 19,109,421
Hamilton Classic Shares...... 20,276,232 28,391,170
Cost of capital stock repurchased:
Hamilton Shares.................................. (4,169,632,101) (5,697,902,968)
Hamilton Premier Shares.......................... (7,176,791,978) (7,855,882,869)
Hamilton Classic Shares.......................... (4,720,922,949) (7,152,715,884)
--------------- ---------------
Net increase in net assets resulting from capital stock transactions........ 1,158,847,601 965,012,394
--------------- ---------------
INCREASE IN NET ASSETS.................................................... 1,158,847,633 965,022,525
NET ASSETS:
Beginning of year............................................................. 3,489,187,278 2,524,164,753
--------------- ---------------
End of period................................................................. $ 4,648,034,911 $ 3,489,187,278
=============== ===============
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Hamilton Shares..................................................... 5,046,185,804 5,967,303,526
Hamilton Premier Shares............................................. 7,447,558,814 7,643,411,324
Hamilton Classic Shares............................................. 4,689,556,692 7,996,888,196
Shares issued on reinvestment of dividends:
Hamilton Shares.......................... 13,147,614 16,415,417
Hamilton Premier Shares.................. 9,463,583 19,107,816
Hamilton Classic Shares.................. 20,280,855 28,392,431
Shares repurchased:
Hamilton Shares............................................... (4,169,632,101) (5,697,902,968)
Hamilton Premier Shares....................................... (7,176,791,978) (7,855,882,869)
Hamilton Classic Shares....................................... (4,720,922,949) (7,152,715,883)
--------------- ---------------
Net increase................................................................ 1,158,846,334 965,016,990
Shares outstanding, beginning of year......................................... 3,489,183,311 2,524,166,321
--------------- ---------------
Shares outstanding, end of period............................................. 4,648,029,645 3,489,183,311
=============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
137
<PAGE>
BNY HAMILTON MONEY FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON SHARES
--------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 --------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
---------------- ---------------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at
beginning of year...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income.... 0.029 0.050 0.053 0.053 0.052 0.057
---------- ---------- ---------- ---------- -------- --------
DIVIDENDS
Dividends from net
investment income...... (0.029) (0.050) (0.053) (0.053) (0.052) (0.057)
---------- ---------- ---------- ---------- -------- --------
Net asset value at end of
period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ======== ========
TOTAL RETURN:............ 2.95%** 5.03% 5.41% 5.47% 5.30% 5.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of
period
(000's omitted)........ $2,615,044 $1,725,341 $1,439,525 $1,063,579 $609,424 $604,053
Ratio to average net
assets of:
Expenses............... 0.24%*** 0.24% 0.26% 0.25% 0.27% 0.26%
Net investment
income............... 5.87%*** 4.92% 5.25% 5.34% 5.17% 5.68%
</TABLE>
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
138
<PAGE>
BNY HAMILTON MONEY FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON PREMIER SHARES
------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 ------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
---------------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at
beginning of year...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- ---------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income.... 0.028 0.047 0.050 0.051 0.049 0.054
---------- -------- ---------- -------- -------- --------
DIVIDENDS
Dividends from net
investment income...... (0.028) (0.047) (0.050) (0.051) (0.049) (0.054)
---------- -------- ---------- -------- -------- --------
Net asset value at end of
period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======== ========== ======== ======== ========
TOTAL RETURN:............ 2.82%** 4.77% 5.14% 5.19% 5.03% 5.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of
period
(000's omitted)........ $1,151,520 $871,287 $1,064,645 $688,339 $463,759 $340,163
Ratio to average net
assets of:
Expenses............... 0.49%*** 0.49% 0.51% 0.51% 0.53% 0.54%
Net investment
income............... 5.61%*** 4.70% 5.01% 5.09% 4.91% 5.40%
</TABLE>
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
139
<PAGE>
BNY HAMILTON MONEY FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON CLASSIC SHARES
----------------------------------------------------------------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, DECEMBER 4, 1995*
JUNE 30, 2000 ----------------------------------------------- THROUGH
(UNAUDITED) 1999 1998 1997 1996 DECEMBER 31, 1995
---------------- ----------- ---------- ---------- ---------- ---------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income............ 0.027 0.044 0.047 0.047 0.046 0.004
-------- -------- ------- ------- ------- ------
DIVIDENDS
Dividends from net investment
income......................... (0.027) (0.044) (0.047) (0.047) (0.046) (0.004)
-------- -------- ------- ------- ------- ------
Net asset value at end of
period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======= ======= ======= ======
TOTAL RETURN:.................... 2.69%** 4.51% 4.81% 4.80% 4.73% 0.40%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period
(000's omitted)................ $881,471 $892,560 $19,995 $16,725 $13,478 $3,098
Ratio to average net assets of:
Expenses....................... 0.74%*** 0.74% 0.83% 0.88% 0.82% 0.76%***
Net investment income.......... 5.34%*** 4.46% 4.70% 4.71% 4.67% 5.18%***
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
140
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ ------------
<C> <S> <C>
UNITED STATES GOVERNMENT OBLIGATIONS--14.4%
UNITED STATES TREASURY BILLS--1.1%
$ 10,000,000 5.73%, 8/10/00.......................... $ 9,936,278
------------
UNITED STATES TREASURY NOTES--13.3%
5,000,000 5.375%, 7/31/00......................... 4,999,535
10,000,000 6.25%, 8/31/00.......................... 10,012,611
10,000,000 6.125%, 9/30/00......................... 10,002,494
10,000,000 5.75%, 10/31/00......................... 9,997,447
10,000,000 5.75%, 11/15/00......................... 9,989,558
10,000,000 5.50%, 12/31/00......................... 9,967,220
20,000,000 5.25%, 1/31/01.......................... 19,874,215
10,000,000 5.625%, 2/28/01......................... 9,950,350
10,000,000 4.875%, 3/31/01......................... 9,882,917
10,000,000 6.375%, 3/31/01......................... 9,984,555
10,000,000 6.25%, 4/30/01.......................... 9,960,198
10,000,000 6.50%, 5/31/01.......................... 9,989,097
------------
124,610,197
------------
TOTAL UNITED STATES GOVERNMENT
OBLIGATIONS
(Cost $134,546,475)..................... 134,546,475
------------
</TABLE>
<TABLE>
<C> <S> <C>
REPURCHASE AGREEMENTS--85.9%
REPURCHASE AGREEMENT WITH BARCLAYS CAPITAL,
INC.--17.6%
165,000,000 6.50%, dated 6/30/00, due 7/03/00,
repurchase price $165,089,375
(Collateral--UST Note, 4.625%-5.625%,
11/30/00-2/28/01; UST Bonds, 10.75%,
8/15/05; aggregate market value plus
accrued interest $169,078,930).......... 165,000,000
PRINCIPAL
AMOUNT VALUE
------------ ------------
REPURCHASE AGREEMENTS (CONTINUED)
REPURCHASE AGREEMENT WITH DEUTSCHE BANK SECURITIES,
INC.--6.4%
$ 60,000,000 6.55%, dated 6/30/00, due 7/03/00,
repurchase price $60,032,750 (Collateral
UST Notes 5.625%-5.875%,
2/28/01-11/30/01; aggregate market value
plus accrued interest $61,200,102)...... $ 60,000,000
REPURCHASE AGREEMENT WITH GOLDMAN, SACHS & CO.--11.1%
103,778,000 6.49%, dated 6/30/00, due 7/03/00,
repurchase price $103,834,127
(Collateral--UST Note, 4.625%, 11/30/00;
aggregate market value plus accrued
interest $105,853,842).................. 103,778,000
REPURCHASE AGREEMENT WITH J.P. MORGAN SECURITIES,
INC.--15.0%
140,000,000 6.50%, dated 6/30/00, due 7/03/00,
repurchase price $140,075,833
(Collateral--UST Note, 5.8750%, 9/30/02;
UST Bonds, 8.125%-13.75%,
8/15/04-8/15/19; aggregate market value
plus accrued interest $142,801,096)..... 140,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
141
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
------------ ------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
REPURCHASE AGREEMENT WITH MORGAN STANLEY DEAN
WITTER--17.6%
$165,000,000 6.50%, dated 6/30/00, due 7/03/00,
repurchase price $165,089,375
(Collateral--UST TRIN 3.375%, 1/15/07;
UST Bond, 9.25%, 2/15/16; aggregate
market value plus accrued interest
$168,300,077)........................... $165,000,000
REPURCHASE AGREEMENT WITH SALOMON SMITH BARNEY--18.2%
170,000,000 6.55%, dated 6/30/00, due 7/03/00,
repurchase $170,092,792 (Collateral--
UST Note 6.75%, 5/15/05; aggregate
market value plus accrued interest
$173,469,731)........................... 170,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $803,778,000)..................... 803,778,000
------------
</TABLE>
<TABLE>
<C> <S> <C>
TOTAL INVESTMENTS--
(Cost $938,324,475)-- 100.3%............ 938,324,475
Liabilities in excess of other
assets--(0.3%).......................... (2,676,263)
------------
NET ASSETS--100.0%...................... $935,648,212
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
142
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at value, including repurchase agreements of $803,778,000 (Cost
$938,324,475)............................................................... $ 938,324,475
Cash.......................................................................... 82,499
Receivables:
Investments sold............................................................ 752,351,050
Capital stock sold.......................................................... 70,411,528
Interest.................................................................... 2,192,571
Deferred organization costs and other assets.................................. 11,317
--------------
TOTAL ASSETS................................................................ 1,763,373,440
--------------
LIABILITIES:
Payables:
Investments purchased....................................................... 803,778,000
Capital stock repurchased................................................... 19,258,980
Dividends................................................................... 4,304,827
Services provided by the Bank of New York and Administrator................. 373,958
Accrued expenses and other liabilities........................................ 9,463
--------------
TOTAL LIABILITIES........................................................... 827,725,228
--------------
NET ASSETS:..................................................................... $ 935,648,212
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 935,642
Capital surplus............................................................... 934,709,961
Overdistribution of net investment income..................................... (2,369)
Accumulated net realized gain on investments.................................. 4,978
--------------
NET ASSETS...................................................................... $ 935,648,212
==============
HAMILTON SHARES:
Net assets.................................................................... $ 118,097,466
==============
Shares outstanding............................................................ 118,095,607
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
HAMILTON PREMIER SHARES:
Net assets.................................................................... $ 557,812,657
==============
Shares outstanding............................................................ 557,810,130
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
HAMILTON CLASSIC SHARES:
Net assets.................................................................... $ 259,738,089
==============
Shares outstanding............................................................ 259,736,740
==============
Net asset value, offering price and repurchase price per share................ $ 1.00
==============
Hamilton Shares authorized @ $.001 par value.................................... 2,000,000,000
Hamilton Classic authorized @ $.001 par value................................... 2,000,000,000
Hamilton Premier authorized @ $.001 par value................................... 2,000,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 23,382,007
--------------
EXPENSES:
Advisory...................................................................... 397,519
Administration................................................................ 397,519
12b-1 fee--Classic Shares..................................................... 293,302
Servicing fee--Hamilton Premier Shares........................................ 520,374
Hamilton Classic................................................. 293,302
Custodian..................................................................... 85,241
Registration and filings...................................................... 32,422
Accounting services........................................................... 29,879
Transfer agent................................................................ 28,688
Insurance..................................................................... 16,616
Reports to shareholders....................................................... 16,442
Legal......................................................................... 9,597
Audit......................................................................... 8,602
Cash management............................................................... 3,457
Organization.................................................................. 3,223
Directors..................................................................... 2,703
Other......................................................................... 30,167
--------------
TOTAL EXPENSES.............................................................. 2,169,053
Earnings credit adjustment (Note 3)........................................... (46,844)
--------------
NET EXPENSES................................................................ 2,122,209
--------------
NET INVESTMENT INCOME....................................................... 21,259,798
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 21,259,798
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
143
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income......................................................... $ 21,259,798 $ 32,342,832
Net realized gain on investments.............................................. -- 4,978
--------------- ---------------
Net increase in net assets resulting from operations........................ 21,259,798 32,347,810
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Hamiltons Shares.......................... (4,015,581) (9,690,422)
Hamilton Premier Shares................... (11,223,779) (17,470,365)
Hamilton Classic Shares................... (6,020,438) (5,181,736)
--------------- ---------------
(21,259,798) (32,342,523)
--------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold:
Hamilton Shares.................................. 493,824,730 1,661,381,430
Hamilton Premier Shares.......................... 1,051,894,393 2,334,059,545
Hamilton Classic Shares.......................... 1,095,993,129 1,491,861,700
Proceeds from shares issued on reinvestment
of dividends: Hamilton Shares............................................... 2,036,160 5,989,186
Hamilton Premier Shares......................................... 1,921,218 7,764,447
Hamilton Classic Shares......................................... 4,781,459 5,172,423
Cost of capital stock repurchased:
Hamilton Shares................................. (603,245,239) (1,643,253,379)
Hamilton Premier Shares......................... (925,464,445) (2,432,857,304)
Hamilton Classic Shares......................... (1,068,153,254) (1,269,918,648)
--------------- ---------------
Net increase in net assets resulting from capital stock transactions........ 53,588,151 160,199,400
--------------- ---------------
INCREASE IN NET ASSETS.................................................... 53,588,151 160,204,687
NET ASSETS:
Beginning of year............................................................. 882,060,061 721,855,374
--------------- ---------------
End of period (includes overdistribution of net investment income of $2,369 at
both June 30, 2000 and December 31,1999).................................... $ 935,648,212 $ 882,060,061
=============== ===============
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold:
Hamilton Shares.................................................... 493,824,730 1,661,381,145
Hamilton Premier Shares............................................ 1,051,894,393 2,334,059,545
Hamilton Classic Shares............................................ 1,095,994,061 1,491,861,700
Shares issued on reinvestment of
dividends: Hamilton Shares.................................................. 2,036,115 5,989,186
Hamilton Premier Shares............................................ 1,921,218 7,764,447
Hamilton Classic Shares............................................ 4,781,459 5,172,423
Shares repurchased:
Hamilton Shares.............................................. (603,245,238) (1,643,253,379)
Hamilton Premier Shares...................................... (925,464,445) (2,432,856,994)
Hamilton Classic Shares...................................... (1,068,154,254) (1,269,918,648)
--------------- ---------------
Net increase................................................................ 53,588,039 160,199,425
Shares outstanding, beginning of year......................................... 882,054,438 721,855,013
--------------- ---------------
Shares outstanding, end of period............................................. 935,642,477 882,054,438
=============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
144
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON SHARES
----------------------------------------------------------------
FOR THE
PERIOD
APRIL 1,
1997*
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, 2000 -------------------------- DECEMBER 31,
UNAUDITED 1999 1998 1997
---------------- ------------ ------------ ------------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.028 0.047 0.051 0.040
-------- -------- -------- --------
DIVIDENDS
Dividends from net investment income.... (0.028) (0.047) (0.051) (0.040)
-------- -------- -------- --------
Net asset value at end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
TOTAL RETURN:........................... 2.82%** 4.79% 5.25% 4.02%**
RATIOS/SUPPLEMENTAL
DATA:
Net assets at end of period
(000's omitted)....................... $118,007 $225,482 $201,363 $110,719
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.26%*** 0.28% 0.27% 0.25%***
Expenses, prior to waiver from The
Bank of New York.................... 0.26%*** 0.28% 0.28% 0.33%***
Net investment income, net of waiver
from The Bank of New York........... 5.57%*** 4.69% 5.09% 5.29%***
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
145
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON PREMIER SHARES
----------------------------------------------------------------
FOR THE
PERIOD
APRIL 1,
1997*
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, 2000 -------------------------- DECEMBER 31,
UNAUDITED 1999 1998 1997
---------------- ------------ ------------ ------------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.027 0.045 0.049 0.038
-------- -------- -------- --------
DIVIDENDS
Dividends from net investment income.... (0.027) (0.045) (0.049) (0.038)
-------- -------- -------- --------
Net asset value at end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
TOTAL RETURN:........................... 2.69%** 4.54% 4.99% 3.83%**
RATIOS/SUPPLEMENTAL
DATA:
Net assets at end of period
(000's omitted)....................... $557,813 $429,461 $520,492 $183,895
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.50%*** 0.52% 0.52% 0.50%***
Expenses, prior to waiver from The
Bank of New York.................... 0.50%*** 0.52% 0.53% 0.56%***
Net investment income, net of waiver
from The Bank of New York........... 5.39%*** 4.41% 4.82% 5.06%***
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
146
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON CLASSIC SHARES
-------------------------------------
FOR THE PERIOD
APRIL 30,
1999*
SIX MONTHS ENDED THROUGH
JUNE 30, 2000 DECEMBER 31,
UNAUDITED 1999
---------------- -------------------
<S> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 1.00 $ 1.00
-------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.025 0.029
-------- --------
DIVIDENDS
Dividends from net investment income.... (0.025) (0.029)
-------- --------
Net asset value at end of period........ $ 1.00 $ 1.00
======== ========
TOTAL RETURN:........................... 2.57%** 2.90%**
RATIOS/SUPPLEMENTAL
DATA:
Net assets at end of period
(000's omitted)....................... $259,738 $227,117
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.76%*** 0.78%***
Expenses, prior to waiver from The
Bank of New York.................... 0.76%*** 0.78%***
Net investment income, net of waiver
from The Bank of New York........... 5.13%*** 4.33%***
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
147
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
BNY Hamilton Funds, Inc. (the "Company") was organized as a Maryland
Corporation on May 1, 1992 and is registered under the Investment Company Act of
1940 as an open-end management investment company. The Company currently
consists of thirteen series: BNY Hamilton Large Cap Growth Fund (the "Large Cap
Growth Fund"), BNY Hamilton Small Cap Growth Fund (the "Small Cap Growth Fund"),
BNY Hamilton International Equity Fund (the "International Equity Fund"), BNY
Hamilton Equity Income Fund (the "Equity Income Fund"), BNY Hamilton Large Cap
Value Fund (the "Large Cap Value Fund"), BNY Hamilton S&P 500 Index Fund (the
"S&P 500 Index Fund"), BNY Hamilton Intermediate Government Fund (the
"Intermediate Government Fund"), BNY Hamilton Intermediate Investment Grade Fund
(the "Intermediate Investment Grade Fund"), BNY Hamilton U.S. Bond Market Index
Fund (the "U.S. Bond Market Index Fund"), BNY Hamilton Intermediate Tax-Exempt
Fund (the "Intermediate Tax-Exempt Fund"), BNY Hamilton Intermediate New York
Tax-Exempt Fund (the "Intermediate New York Tax-Exempt Fund"), BNY Hamilton
Money Fund (the "Money Fund"), and BNY Hamilton Treasury Money Fund (the
"Treasury Money Fund") (individually, a "Fund" and collectively, the "Funds").
All the Funds (except the Money Fund, Treasury Money Fund, Large Cap Value Fund,
S&P 500 Index Fund and U.S. Bond Market Index Fund) consist of two classes of
shares: Institutional Shares and Investor Shares. The Large Cap Value Fund, S&P
500 Index Fund, and the U.S. Bond Market Index Fund have one class of share:
Institutional Shares; the Money Fund and Treasury Money Fund consists of three
classes of shares: Hamilton Shares, Hamilton Premier Shares, and Hamilton
Classic Shares.
Investment income, exepenses (other than those specific to the class of
shares), and realized and unrealized gains and losses on investments are
allocated to the separate classes of shares based upon their relative net asset
value on the date income is earned or expensed and realized and unrealized gains
and losses are incurred.
2. SIGNIFICANT ACCOUNTING POLICIES
(A) SECURITY VALUATIONS
Securities listed on a domestic securities exchange, including options on
stock indexes, are valued based on the last sale price as of the close of
regular trading hours on the New York Sock Exchange or, in the absence of
recorded sales, at the average of readily available closing bid and asked prices
on such exchange. Securities listed on a foreign exchange are valued at the last
quoted sale price at the close of the primary exchange. Unlisted securities
traded only on the over-the-counter market are valued at the average of the
quoted bid and the asked prices on the over-the-counter market.
The market value of a written call option or a purchased put option is the
last reported sale price on the principal exchange on which such option is
traded or, if no sales are reported, the average between the last reported bid
and asked prices.
148
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The determination of the value of certain portfolio debt securities, other
than temporary investments in short-term securities, take into account various
factors affecting market value, including yields and prices of comparable
securities, indications as to value from dealers and general market conditions.
Securities included in the Money Fund and Treasury Money Fund, and short-term
securities with a remaining maturity of 60 days or less in all other Funds are
valued at amortized cost which approximates fair value. This method values a
security at its cost at the time of purchase and thereafter assumes a constant
rate of amortization to maturity of any discount or premium.
Securities for which market quotations are not readily available, including
investments that are subject to limitations as to their sale (such as certain
restricted securities and illiquid securities), are valued at fair value as
determined in good faith by the Board of Directors. In determining fair value,
consideration is given to cost, operating and other financial data.
(B) CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies are translated into
U.S. dollars at the mean of the bid and asked price of respective exchange rate
on the last day of the period. Purchases and sales of investments denominated in
foreign currencies are translated at the exchange rate on the date of the
transaction.
Foreign exchange gain or loss resulting from the sale of an investment,
holding of a foreign currency, expiration of a currency exchange contract,
difference in exchange rates between the trade date and settlement date of an
investment purchased or sold, and the difference between dividends actually
received compared to the amount shown in a Fund's accounting records on the date
of receipt are shown as net realized gains or losses in the respective Fund's
statement of operations.
Foreign exchange gain or loss on assets and liabilities other than investments
currently shown on the respective Fund's statement of assets and liabilities are
shown as unrealized appreciation (depreciation) on foreign currency
transactions.
(C) REPURCHASE AGREEMENTS
A Fund's custodian or designated sub-custodians, as the case may be under
tri-party repurchase agreements, takes possession of the collateral pledged for
investments in repurchase agreements. The underlying collateral is valued daily
on a mark-to-market basis to ensure that the value, including accrued interest,
is at least equal to the repurchase price. In the event of default of the
obligation to repurchase, a Fund has the right to liquidate the collateral and
apply the proceeds in satisfaction of the obligations. Under certain
circumstances, 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.
(D) WRITTEN OPTIONS AND PURCHASED OPTIONS
All Funds (except the Money Fund and the Treasury Money Fund) may enter into
option contracts for the purpose of either
149
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
hedging its exposure to the market fluctuations of the portfolio, or an
individual security position. The nature and risks associated with these
securities are explained further in the Prospectus and Statement of Additional
Information.
When a Fund writes an option, it will receive a premium. Premiums received are
recorded as liabilities and adjusted to current market value daily. When an
option is purchased, the Fund will pay a premium. Premiums paid for options are
included as investments and are also adjusted to their current market value
daily.
If a written option expires, the premium received by the Fund will be treated
as a short term capital gain. Likewise, premiums paid for purchased options that
expire unexercised will be treated as short term capital losses. In addition,
short term capital gains or losses may be realized on exercised written calls or
purchased puts depending on the premiums received or paid and the strike price
of the underlying securities.
As a writer of call options, a Fund does not have control over exercising of
such options. As a result, that Fund bears unlimited market risk of favorable
changes in the value of the call option's underlying securities. The Fund also
bears unlimited market risk in the value of the written call option itself.
If an option which a Fund has purchased expires on its stipulated expiration
date, it realizes a loss in the amount of the cost of the option. If it enters
into a closing transaction, it realizes a gain or loss, depending on whether the
proceeds from the sale are greater or less than the cost of the option. If the
Fund exercises a put option, it realizes a gain or loss from the sale of the
underlying security and the proceeds from such sale will be decreased by the
premium originally paid. If a Fund exercises a call option, the cost of the
security which it purchases upon exercise will be increased by the premium
originally paid.
(E) FEDERAL INCOME TAXES
Each Fund is created as a separate entity for federal income tax purposes. The
Funds' policy is to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and distribute all of the taxable
and tax-exempt income to the shareholders within the allowable time limits.
Therefore, no federal income tax provision is required.
(F) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
The Intermediate Government Fund, the Intermediate Investment Grade Fund, the
U.S. Bond Market Index Fund, the Intermediate Tax-Exempt Fund, the Intermediate
New York Tax-Exempt Fund, the Money Fund and the Treasury Money Fund declare
dividends daily and pay dividends monthly. The Equity Income Fund and the Large
Cap Growth Fund declare and pay dividends monthly. The Large Cap Value Fund and
S&P 500 Index Fund declare and pay dividends quarterly. The Small Cap Growth
Fund and the International Equity Fund declare and pay dividends annually,
provided that there is net investment income at the end of the fiscal year.
150
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(G) SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are recorded on the trade date. Realized gains and
losses on security transactions are determined using the identified cost method.
Dividend income is recognized on the ex-dividend date and interest income is
accrued daily. Discounts on securities purchased for all Funds, except for the
Intermediate Tax-Exempt Fund and the Intermediate New York Tax-Exempt Fund, and
premiums on securities purchased for the Intermediate Tax-Exempt Fund, the
Intermediate New York Tax-Exempt Fund, the Money Fund, and the Treasury Money
Fund are amortized.
(H) FINANCIAL STATEMENTS PREPARATION
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses for the
period. Actual results could differ from those estimates.
(I) ORGANIZATION COSTS
Costs incurred in connection with the organization and initial registration of
the Large Cap Growth Fund, Small Cap Growth Fund, International Equity Fund,
Intermediate Investment Grade Fund, Intermediate Tax-Exempt Fund and Treasury
Money Fund are being amortized evenly over the period of benefit not to exceed
60 months from the date upon which those Funds commenced investment operations.
3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES
The Bank of New York acts as the Funds' investment adviser (the "Adviser").
The Adviser manages the investments of the Funds and is responsible for all
purchases and sales of the Funds' portfolio securities. The Adviser's fee
accrues daily and is payable monthly at the following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE
DAILY NET ASSETS
----------------
<S> <C>
Large Cap Growth Fund................... .60%
Small Cap Growth Fund................... .75%
International Equity Fund............... .425%
Equity Income Fund...................... .60%
Large Cap Value......................... .60%
S&P 500 Index Fund...................... .25%
Intermediate Government Fund............ .50%
Intermediate Investment Grade Fund...... .50%
U.S. Bond Market Index Fund............. .25%
Intermediate Tax-Exempt Fund............ .50%
Intermediate New York Tax-Exempt Fund... .50%
Money Fund.............................. .10%
Treasury Money Fund..................... .10%
</TABLE>
The International Equity Fund is also sub-advised by Indocam, formerly
Indosuez International Investment Services (the "Sub-Adviser"), a subsidiary of
Banque Indosuez. The Fund accrues daily an additional fee to the Sub-Adviser,
payable monthly at the rate of .425% of average daily net assets of the
International Equity Fund.
BNY Hamilton Distributors, Inc. (a wholly-owned subsidiary of The BISYS Group,
Inc.) acts as the Funds' administrator (the "Administrator") and will assist in
supervising the operations of the Funds.
151
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Administrator has agreed to provide facilities, equipment and personnel to
carry out administrative services for the Funds, including, among other things,
providing the services of persons who may be appointed as officers and directors
of the Funds, monitoring the custodian, fund accounting, transfer agency,
administration, distribution, advisory and legal services that are provided to
the Funds. The Administration Agreement permits the Administrator to delegate
certain responsibilities to other service providers. Pursuant to this authority,
the Administrator had delegated certain administrative functions to The Bank of
New York. The Bank of New York is not an affliated person of BNY Hamilton
Distributors, Inc.
The Administrator's fee is accrued daily and is payable monthly computed
utilizing the following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE
DAILY NET ASSETS
----------------
<S> <C>
Large Cap Growth Fund................... .20%
Small Cap Growth Fund................... .20%
International Equity Fund............... .20%
Equity Income Fund...................... .20%
Large Cap Value......................... .20%
S&P 500 Index Fund...................... .20%
Intermediate Government Fund............ .20%
Intermediate Investment Grade Fund...... .20%
U.S. Bond Market Index Fund............. .20%
Intermediate Tax-Exempt Fund............ .20%
Intermediate New York Tax-Exempt Fund... .20%
Money Fund.............................. .10%
Treasury Money Fund..................... .10%
</TABLE>
In addition to acting as Administrator, BNY Hamilton Distributors, Inc. is the
principal underwriter and distributor of shares of the Funds.
The Bank of New York serves as the Funds' custodian ("Custodian"). Each Fund
maintains a compensating balance arrangement with the Custodian, whereby a Fund
would have its respective custody fees reduced by income earned on cash balances
maintained with the Custodian. The income earned on cash balances by each Fund
for the six months ended June 30, 2000 is shown on its respective Statement of
Operations under the caption "Earnings Credit Adjustment." For the six months
ended June 30, 2000, the Large Cap Growth Fund and the Intermediate New York
Tax-Exempt Fund did not earn any such monies.
The Bank of New York voluntarily agreed to assume/waive expenses for certain
Funds to the extent that each Fund's expense ratio exceeded the percentage of
average daily net assets as shown below:
<TABLE>
<CAPTION>
INSTITUTIONAL INVESTOR
SHARES SHARES
------------- --------
<S> <C> <C>
Large Cap Value......................... .80% --
S&P 500 Index........................... .35% --
Intermediate Government Fund............ .79% 1.04%
Intermediate Investment Grade Fund...... .79% 1.04%
U.S. Bond Market Index Fund............. .35% --
Intermediate Tax-Exempt Fund............ .79% 1.04%
Intermediate New York Tax-Exempt Fund... .79% 1.04%
</TABLE>
The Large Cap Growth Fund, International Equity Fund, Equity Income Fund,
Money Fund and Treasury Money Fund did not have any expense waivers for the six
months ended June 30, 2000.
Management reserves the right to implement or discontinue expense limitations
at any time.
152
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Company has adopted a distribution plan (the "12b-1 Plans") with respect
to each Fund (except for the Large Cap Value Fund, S&P 500 Index Fund, and U.S.
Bond Market Index Fund). Under the 12b-1 Plans, the Funds will pay the
Distributor for distribution expenses incurred in connection with sales of
shares as outlined in the following chart:
<TABLE>
<CAPTION>
DATE OF
IMPLEMENTATION OF
NAME OF FUND CLASS 12B-1 PLAN
------------ --------------------- -----------------
<S> <C> <C>
Large Cap Growth Fund................... Investor May 1, 1997
Small Cap Growth Fund................... Investor May 1, 1997
International Equity Fund............... Investor May 1, 1997
Equity Income Fund...................... Investor April 1, 1997
Intermediate Government Fund............ Investor April 1, 1997
Intermediate Investment Grade Fund...... Investor May 1, 1997
Intermediate Tax Exempt Fund............ Investor May 1, 1997
Intermediate New York Tax-Exempt Fund... Investor April 1, 1997
Money Fund.............................. Hamilton Classic December 4, 1995
Treasury Money
Fund.................................. Hamilton Classic April 30, 1999
</TABLE>
Payments for distribution expenses may not exceed .25% of the average daily
net assets of each class noted in the chart above.
BNY Hamilton Funds, Inc. has adopted a shareholder servicing plan for the
Money Fund and the Treasury Money Fund, pursuant to which, Hamilton Premier
Shares and Hamilton Classic Shares of the Money Fund and Treasury Money Fund are
sold to certain institutions that enter into servicing agreements with the
Company. The Bank of New York and the Administrator (the "Shareholder Servicing
Agents") have each entered into Shareholder Service Agreements with respect to
these Shares. The Shareholder Servicing Agents will perform shareholder support
services. Pursuant to the Shareholder Service Agreements, Hamilton Premier
Shares and Hamilton Classic Shares of the Money Fund and Treasury Money Fund
will pay the Shareholder Servicing Agents an annual shareholder servicing fee,
accrued daily and payable monthly, of .25% of the Shares' respective average
daily net assets. The shareholder servicing plan does not cover, and the fees
thereunder are not payable to, Shareholder Organizations with respect to
Hamilton Shares of the Money Fund and the Treasury Money Fund.
153
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. PORTFOLIO SECURITIES
For the six months ended June 30, 2000, the cost of securities purchased and
the proceeds from sales of securities, excluding short-term securities, were as
follows:
<TABLE>
<CAPTION>
LARGE CAP GROWTH FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 30,922,975 32,033,387
<CAPTION>
SMALL CAP GROWTH FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 105,322,576 112,977,893
<CAPTION>
INTERNATIONAL EQUITY FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 132,552,788 85,247,457
<CAPTION>
EQUITY INCOME FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 133,206,558 142,346,540
<CAPTION>
LARGE CAP VALUE
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 1,332,886 --
<CAPTION>
S&P 500 INDEX
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 4,612,636 524,896
<CAPTION>
INTERMEDIATE
GOVERNMENT FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ 5,329,703 $ 8,402,620
All Others........................................ -- --
<CAPTION>
INTERMEDIATE INVESTMENT
GRADE FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ 92,018,532 $ 84,718,653
All Others........................................ 50,659,502 44,589,367
<CAPTION>
U.S. BOND MARKET
INDEX FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 13,960,900 5,573,379
<CAPTION>
INTERMEDIATE TAX-EXEMPT
FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 19,848,346 33,339,064
<CAPTION>
INTERMEDIATE NEW YORK
TAX-EXEMPT FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 1,278,804 1,060,237
</TABLE>
5. FEDERAL INCOME TAXES
For federal income tax purposes, the Funds indicated below have capital loss
carryforwards as of December 31, 1999 which are available to offset future
capital gains, if any. Accordingly, no capital gains distribution is expected to
be paid to shareholders until net gains have been realized in excess of such
amounts.
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYFORWARD EXPIRATION
------------ ----------
<S> <C> <C>
Intermediate Government Fund............ 705,978 2002
681,600 2003
447,700 2004
390,800 2005
Intermediate Investment Grade Fund...... 1,269,514 2007
Intermediate New York Tax-Exempt Fund... 3,928 2007
</TABLE>
154
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
6. WRITTEN OPTION ACTIVITY
Transactions in written options for the six months ended June 30, 2000 were as
follows:
LARGE CAP GROWTH FUND
<TABLE>
<CAPTION>
NUMBER
OF PREMIUMS
CONTRACTS RECEIVED
--------- ---------
<S> <C> <C>
Options outstanding at December 31,
1999.................................. 2,350 $ 849,121
Options written during the period....... 600 505,058
Options exercised....................... (1,124) (632,605)
Options expired......................... (1,426) (459,658)
-------- ---------
Options outstanding at June 30, 2000.... 400 $ 261,916
======== =========
</TABLE>
EQUITY INCOME FUND
<TABLE>
<CAPTION>
NUMBER
OF PREMIUMS
CONTRACTS RECEIVED
--------- -----------
<S> <C> <C>
Options outstanding at December 31,
1999.................................. 130 $ 77,607
Options written during the period....... 7,620 2,295,392
Options exercised....................... (2,087) (579,871)
Options expired......................... (5,663) (1,793,128)
-------- -----------
Options outstanding at June 30, 2000.... -- --
======== ===========
</TABLE>
7. RECLASSIFICATION OF CAPITAL ACCOUNTS
At December 31, 1999, reclassifications were made to the capital accounts of
all Funds except the Intermediate New York Tax-Exempt Fund, Money Fund, and
Treasury Money Fund to reflect permanent book/tax differences and income and
gains available for distributions under income tax regulations. Net investment
income, net realized gains, and net assets were not affected by these changes.
8. GEOGRAPHIC CONCENTRATION
The International Equity Fund has a relatively large concentration of
portfolio securities invested in companies domiciled in Japan. The International
Equity Fund may be more susceptible to political, social and economic events
adversely affecting Japanese companies than funds not so concentrated.
9. CONCENTRATION OF RISK
The Intermediate New York Tax-Exempt Fund invests substantially all of its
assets in a portfolio of tax-exempt debt obligations primarily consisting of
securities issued by the State of New York and its authorities, agencies,
municipalities and political sub-divisions. Also, the Intermediate Tax-Exempt
Fund invests approximately 25% of its assets in debt obligations of the State of
New York. The issuers' ability to meet their obligations may be affected by New
York's political, social, economic, and/or regional developments.
155
<PAGE>
DIRECTORS AND OFFICERS
Edward L. Gardner, Director and Chairman of the Board
Stephen Stamas, Director
James E. Quinn, Director
Karen Osar, Director
Kim Kelly, Director
William J. Tomko, Chief Executive Officer
Mark A. Dillon, President
Richard Baxt, Vice President
Michael A. Grunewald, Vice President
Nimish Bhatt, Treasurer and Principal Accounting Officer
Lisa M. Hurley, Secretary
Alaina Metz, Assistant Secretary
Manderly Rush, Assistant Secretary
INVESTMENT ADVISER
The Bank of New York
ADMINISTRATOR AND DISTRIBUTOR
BNY Hamilton Distributors, Inc.
TRANSFER AGENT
BISYS Fund Services, Ohio, Inc.
CUSTODIAN
The Bank of New York
INDEPENDENT AUDITORS
Ernst & Young LLP
LEGAL COUNSEL
Sullivan & Cromwell
156
<PAGE>
BNY HAMILTON DISTRIBUTORS, INC., IS THE FUNDS' DISTRIBUTOR AND IS
UNAFFILIATED WITH THE BANK OF NEW YORK, THE INVESTMENT ADVISER.
This report is not authorized for distributions to prospective investors
unless preceded or accompanied by a current prospectus for Hamilton Shares of
BNY Hamilton Money Fund and BNY Hamilton Treasury Money Fund, Hamilton
Premier Shares of BNY Hamilton Money Fund and BNY Hamilton Treasury Money
Fund, Hamilton Classic Shares of BNY Hamilton Money Fund and BNY Hamilton
Treasury Money Fund, Equity Funds, Taxable Fixed Income Funds or Tax-Exempt
Fixed Income Funds.
For additional prospectuses which contain more complete information,
including charges and expenses, call 1-800-426-9363. Please read the
prospectus carefully before investing or sending money.
Investments in the Funds are not deposits, are neither guaranteed by, nor
obligations of, The Bank of New York and are not insured by the FDIC or any
other governmental agency. Investments in mutual funds involve risks,
including the possible loss of principal.
<PAGE>
BNY
HAMILTON
FUNDS
INVEST WITH A TRUSTED LEADER
90 Park Avenue, 10th Floor
New York, NY 10016
08/00 BNY-0132
<PAGE>
BNY
HAMILTON
[LOGO]
SEMI-ANNUAL REPORT
JUNE 30, 2000
BNY HAMILTON
LARGE CAP GROWTH
CRT FUND
BNY HAMILTON
SMALL CAP GROWTH
CRT FUND
BNY HAMILTON
INTERNATIONAL
EQUITY CRT FUND
BNY
HAMILTON
FUNDS
INVEST WITH A TRUSTED LEADER
<PAGE>
BNY
HAMILTON
FUNDS
INVEST WITH A TRUSTED LEADER
<PAGE>
CHAIRMAN'S LETTER
Dear Shareholder:
Thank you for investing with BNY Hamilton CRT Funds. We are pleased to provide
you with the first Semi-Annual Report for the Funds, which covers the six-month
period ended June 30, 2000.
Amid a challenging environment for fund managers and investors, the BNY Hamilton
CRT Funds are off to a solid start. Launched on January 3, 2000, the BNY
Hamilton Large Cap Growth CRT and Small Cap Growth CRT Funds significantly
outperformed the averages for their peer group index as determined by Lipper
Analytical Services, an independent mutual fund rating service, while the BNY
Hamilton International Equity CRT Fund slightly underperformed its benchmark for
the six month period ended June 30, 2000.
The guiding philosophy behind the performance and ongoing management of the
Funds is a disciplined long-term approach to investing that seeks to identify
the best investment opportunities, regardless of market conditions. The Funds
are also managed with consideration given to the special tax features that apply
to charitable remainder trusts.
Complete details about BNY Hamilton CRT Funds performance and a discussion of
the investment environment can be found in the pages that follow. You will want
to read this semi-annual report carefully and retain it for your records.
At the BNY Hamilton CRT Funds, we understand and appreciate the importance of
your investment. Given the volatility in the world's financial markets, we
continue to believe that a disciplined, well-considered investment plan is more
important than ever. With a broad range of well-diversified portfolios, each
managed with a consistent investment approach, the Funds are designed to provide
sound investment strategies to help your organization reach its important
financial goals.
Thank you for the confidence you have placed in us.
Sincerely,
/s/ Edward L. Gardner
Edward L. Gardner
Chairman of the Board
<PAGE>
INVESTMENT ADVISOR'S LETTER
Dear Shareholder:
The economy roared into 2000 with a full head of steam. Booming capital spending
for high-tech equipment was the primary driver of the economy's strong forward
momentum, but consumers spent freely as well, particularly during the first
quarter. Real GDP expanded at a well above-trend annualized rate of better than
5.0% through the first half, continuing to surprise most forecasters. On the
positive side, corporate profits continued to surge, reaching new record levels.
On the negative side, energy prices also surged as OPEC demonstrated that it
could still flex its muscles. With the unemployment rate hovering near 4.0%, the
creation of more than one million new jobs during the first six months of this
year increased the strains in the labor market, and hints of rising wage
pressures began to emerge. Observing these developments, the Federal Reserve
continued to tighten monetary policy, raising short term interest rates by a
total of 100 basis points on top of the increase of 75 basis points during the
second half of last year.
How did the financial markets react to these developments? In the end, stock and
bond prices generally closed at price levels not far from where they began the
year. Bonds outperformed stocks based on the higher income streams they
provided. The Lehman Brothers Aggregate Bond Index of taxable investment grade
bonds provided a total return of 3.98% for the first half of the year. The
return provided by the S&P 500 was -0.42% over the same period. While these
returns might suggest that the first half was a fairly quiet period for the
markets, the reality was altogether different, particularly for stocks.
Stock market volatility soared to extreme levels as leadership rotated between
"old economy" and "new economy" issues. Building on its extraordinary gains
during the second half of 1999, the technology-heavy NASDAQ Composite, which
serves as a good proxy for the "new economy," climbed by a further 20%+ to above
the 5000 level by mid-March, then plunged by 37% to near 3000 in late May before
rallying late in the second quarter to record a total return of -2.54% for the
half. The Dow Industrials, which is viewed as a proxy for the "old economy,"
declined by more than 15% from its early January high above 11700 to its early
March low below 9800 before recovering somewhat to post a first half total
return of -8.44%, the poorest performance of the major indices. In international
equity markets, second quarter weakness more than offset modest first quarter
gains for the MSCI-EAFE (Morgan Stanley Capital International--Europe,
Australasia and Far East) Index, which provided a first half total return of
-3.95%. Weakness in the Japanese market and strength in the U.S. dollar relative
to both the yen and the euro were the primary factors weighing on the returns
provided by non-U.S. stocks.
The key underpinning to the recovery in U.S. stocks late in the first half was
increasing evidence that the pace of economic activity was, in fact, beginning
to decelerate in reaction to the Fed's series of interest rate hikes. Concerns
that the Fed might be forced to raise interest rates more aggressively to keep
inflation in check, potentially putting the continuing expansion in the economy
at risk, dissipated as retail sales, housing starts and auto sales all showed
signs of softness. As the first half came to a close, stock market investors'
concerns were shifting from fears that rising inflationary pressures would put
downward pressure on P/E ratios toward anxieties that slowing economic activity
would put downward pressure on corporate profits.
Bond market investors viewed these same developments in a much more favorable
light as slower economic activity suggested reduced risks on the inflation
front. In contrast to earlier periods of Fed tightenings, bond prices held up
surprisingly well during the first half. In part this reflected investors'
confidence that the Fed would take whatever
<PAGE>
measures were necessary to keep inflation in check; it also reflected the fact
that bond prices had traded down sharply in 1999 in advance of the Fed's actions
this year. While the target federal funds rate rose from 5.75% to 6.50% during
the first half, the 10-year Treasury Note yield declined from 6.61% to 6.18%
over this same period as the Treasury yield curve inverted. Benefiting from the
Treasury's use of the federal budget surplus to reduce the outstanding supply of
government securities, the Treasury sector was the best performing sector of the
bond market in the first half. In the broader fixed income market, credit
spreads widened and the yield curves for corporate and municipal issues remained
positively sloped.
The hallmark of the current record-long expansion in the U.S. economy has been a
remarkable combination of above-trend growth and below-trend inflation. From
time to time, as was the case earlier this year, investors' confidence in the
sustainability of this combination is tested by a new development that threatens
to undermine the equilibrium in the economic fundamentals and bring back the
boom/bust business cycle of prior years. We remain alert to the potential for
conditions to change in this way, but, as has been our view for some time, our
judgment is that the economy remains firmly on a non-inflationary growth course.
Keen global competition and strong productivity gains are among the powerful
trends we see helping to keep the economy on this course. As it has proved to be
over the past several years, we believe that this set of economic fundamentals
will provide a continued supportive backdrop for the financial markets through
the balance of this year and well into 2001.
Sincerely,
/s/ Kevin J. Bannon
Kevin J. Bannon
Executive Vice President and
Chief Investment Officer
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
QUESTIONS & ANSWERS................................................... PAGE 1
BNY HAMILTON LARGE CAP GROWTH CRT FUND
Schedule of Investments............................................. 7
Statement of Assets and Liabilities................................. 9
Statement of Operations............................................. 9
Statements of Changes in Net Assets................................. 10
Financial Highlights................................................ 11
BNY HAMILTON SMALL CAP GROWTH CRT FUND
Schedule of Investments............................................. 12
Statement of Assets and Liabilities................................. 16
Statement of Operations............................................. 16
Statements of Changes in Net Assets................................. 17
Financial Highlights................................................ 18
BNY HAMILTON INTERNATIONAL EQUITY CRT FUND
Schedule of Investments............................................. 19
Industry Diversification............................................ 22
Statement of Assets and Liabilities................................. 24
Statement of Operations............................................. 24
Statements of Changes in Net Assets................................. 25
Financial Highlights................................................ 26
NOTES TO FINANCIAL STATEMENTS......................................... 27
DIRECTORS AND OFFICERS................................................ 32
</TABLE>
<PAGE>
BNY HAMILTON LARGE CAP GROWTH CRT FUND
AN INTERVIEW WITH CHARLES GOODFELLOW, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR LARGE CAP STOCKS
DURING THE FIRST HALF OF 2000?
A. As the economy continued to grow at a rapid pace during the first six months
of 2000, signs of a potential inflation threat, including higher energy costs
and rising wages, prompted the Federal Reserve to raise interest rates three
times--twice during the first quarter and once during the second. The rate
hikes, which totaled 1%, led to heightened market volatility. After reaching
a peak at the end of the first quarter, equity prices declined sharply
through the second quarter of the year. Stocks that had soared to excessive
levels during the market's winter run-up experienced significant fallout,
with the technology sector hardest hit.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM DURING THE PERIOD?
A. The Fund closed the first half of 2000 with performance well above its peer
group and significantly ahead of its benchmarks. With a total return of
16.55% for Institutional Class Shares(1) for the six month period ended
June 30, 2000, the Fund compared very favorably with the Lipper Growth and
Income Fund Index(2) and the S&P 500 Index(3), which returned -0.87% and
-0.42%, respectively, for the same period.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S STRONG PERFORMANCE?
A. Stock selection was a major contributor to the Fund's performance,
particularly as the markets encountered significant volatility through the
second quarter of the year. Nine of the Fund's ten largest holdings
outperformed the S&P 500 Index over the period. The Fund's technology
exposure, which was focused in computer software and systems, semiconductors
and telecommunications equipment, avoided most of the Internet disasters of
the second quarter. Our exposure to health care, energy and financial sector
investments also boosted Fund performance significantly.
Q. WHICH STOCKS PERFORMED PARTICULARLY WELL?
A. Four of the Fund's ten largest holdings had returns in excess of 40% for the
period. These included Corning, Enron, EMC and Intel. Corning is on the
cutting edge of research and development in fiber optic cable, providing part
of the broadband pipeline to the Internet and telecom providers. Enron, which
many still regard as a natural gas company, is building a global broadband
network using its existing interstate gas pipeline as a platform for carrying
high speed data. EMC, which is a leading maker of memory storage and
retrieval systems for large mainframe computers, expanded its capabilities
with a line of innovative products to support Internet-based storage
networks. As the demand for high-speed voice and data networks continues to
expand, so should the prospects for each of these companies.
Among the other stocks that performed strongly in the first half were Pfizer,
Schlumberger, BestFoods and Disney, each of which contributed returns in
excess of 30%.
1
<PAGE>
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. After several interest rate increases, we believe the economy has begun to
slow to a more moderate and sustainable growth rate. We expect inflation to
increase somewhat, but to remain under control. Corporate profits should
continue to grow at a healthy pace across a broad array of industries.
High volatility in the market is likely to continue and returns for 2000 may
not be as robust as in recent years. However, we believe that careful stock
selection with a focus on companies with sustainable growth prospects should
contribute to favorable relative performance. We remain confident that our
style of investing will continue to provide superior returns over the long
term.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
TRAILING TRAILING TRAILING AGGREGATE
CURRENT TRAILING YEAR 12 3 YEARS 5 YEARS TOTAL
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE MONTHS ANNUALIZED ANNUALIZED RETURN
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON LARGE CAP GROWTH
CRT FUND (INSTITUTIONAL
SHARES) 6.80% 1.76% 16.55% N/A N/A N/A 16.55%
LIPPER GROWTH AND INCOME FUND -.38% -2.51% -.87% -.63% 11.29% 16.73% -.87%
S&P 500 INDEX 2.47% -2.66% -.42% 7.25% 19.66% 23.80% -.42%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
(1) Total return figures include change in share price, reinvestment of
dividends and capital gains. Investment return and principal value will
fluctuate, so that an investor's share, when redeemed, may be worth more
or less than the original cost. Past performance is no guarantee of
future results. The Advisor has agreed to limit the expenses of the Fund
to 0.80% of its average daily net assets. The Advisor will waive
management fees and, if necessary, reimburse expenses of the Fund to the
extent that total annual operating expenses are greater than 0.80% of its
average daily net assets. Management reserves the right to implement and
discontinue expense limitations at any time. Inception date for this Fund
was January 3, 2000.
(2) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees: Source: Lipper
Analytical Services, Inc.
(3) The S&P 500 is considered representative of the broad U.S. market of
large-capitalization stocks.
2
<PAGE>
BNY HAMILTON SMALL CAP GROWTH CRT FUND*
AN INTERVIEW WITH JOHN LUI, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR SMALL CAP STOCKS IN
THE FIRST SIX MONTHS OF 2000?
A. Structurally, the first half of 2000 was very similar to the first half of
1999. During the first quarter, stronger than expected fundamentals set the
stage for out-performance by growth-oriented small cap stocks, as investors
showed a willingness to buy companies able to generate steady top line and
earnings growth. Investors flip-flopped in the second quarter of this year,
just as they did in 1999. This time, however, inflationary concerns consumed
the market as the Federal Reserve implemented a series of interest rate
hikes. Although the company specific fundamentals that delivered such good
news in the first quarter still seemed to be intact, most market indexes were
off in April and May as investors worried the dramatic credit tightening
would stall the economic expansion. During this period of increasing
volatility, the market broadened away from growth-oriented issues, especially
small cap stocks. By the end of the second quarter, these issues rallied
again, as investors began to gain confidence that the Fed was near the end of
its tightening cycle.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. The Fund performed extremely well against this backdrop, returning 21.10% for
Institutional Class Shares(1) for the six month period ended June 30, 2000.
In comparison, the Russell 2000 Index(2) and the Lipper Small-Cap Fund
Index(3) returned 3.03% and 4.58%, respectively, for the same period.
Q. WHAT ACCOUNTED FOR THE FUND'S STRONG OUTPERFORMANCE?
A. While volatility is an unsettling part of investing, we continue to take
steps to mitigate its impact on overall Fund performance. The Fund's
bottom-up stock selection strategy focuses on small companies that are
growing faster than their peers and whose long-term growth rate we believe is
underestimated. This emphasis on what we call "mini-gorillas"--companies that
are best-in-their-niche and offer predictable, sustainable earnings
growth--helped us to identify attractive portfolio holdings with good
appreciation potential, despite the shift in sentiment from growth to value,
and then back to growth. It also helped us to significantly outperform our
peer group.
The Fund continued to emphasize the technology, consumer, and healthcare
sectors, because we believe these areas exhibit the best secular relative
earnings strength. We maintained our overweighting in the energy sector
during the period, as recent quarterly earnings reports indicate a cyclical
recovery is in place for at least the next two years.
Q. WHAT WERE SOME OF THE FUND'S BEST PERFORMING SECTORS DURING THE PERIOD?
A. The healthcare, energy, and technology sectors enjoyed the best relative
earnings strength during the first six months of the year. In healthcare, our
focus on biotechnology companies with new product cycles and proven
distribution capabilities paid off as many of these stocks posted triple
digit returns in the first half of 2000. As deregulation continued in the
energy sector, our exposure to North American natural gas plays also proved
beneficial. Finally, our technology picks remained focused on
communications-oriented companies and other
3
<PAGE>
companies that provide the essential infrastructure needed to thrive in this
increasingly digital-wireless-data environment.
Q. WHAT DO YOU FORESEE FOR THE REST OF THE YEAR?
A. Looking ahead, we continue to see enormous opportunity in the small cap
market. The transition to a digital-wireless-data world is still in its
infancy and investors are only just beginning to recognize the power of this
trend. However, as businesses adapt to new best practices by deploying the
technological infrastructure our small cap firms provide, the transition will
not always be smooth. The stock market environment during the first half of
2000 demonstrated that as this transformation in the economy unfolds, it will
bring both opportunity and risk. By increasing our diversification, we
believe we are well positioned to minimize volatility in the Fund and to take
advantage of the opportunities we see for well-positioned companies in a
digital-wireless-data world.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
TRAILING TRAILING TRAILING AGGREGATE
CURRENT TRAILING YEAR 12 3 YEARS 5 YEARS TOTAL
PERIODS ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE MONTHS ANNUALIZED ANNUALIZED RETURN
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON SMALL CAP GROWTH
CRT FUND (INSTITUTIONAL
SHARES) 19.90% -2.65% 21.10% N/A N/A N/A 21.10%
LIPPER SMALL CAP FUND INDEX 12.97% -5.95% 4.58% 35.27% 16.78% 17.10% 4.58%
RUSSELL 2000 INDEX 8.72% -3.78% 3.03% 14.33% 10.57% 14.26% 3.03%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
* Small capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure.
(1) Total return figures include change in share price, reinvestment of
dividends and capital gains. Investment return and principal value will
fluctuate, so that an investor's share, when redeemed, may be worth more
or less than the original cost. Past performance is no guarantee of
future results. The Advisor has agreed to limit the expenses of the Fund
to 0.96% of its average daily net assets. The Advisor will waive
management fees and, if necessary, reimburse expenses of the Fund to the
extent that total annual operating expenses are greater than 0.96% of its
average daily net assets. Management reserves the right to implement and
discontinue expense limitations at any time. The Advisor assumes a
portion of the expenses for this Fund. Had expenses not been assumed, the
Total Return and the Average Annual Return would have been lower.
Inception date for this Fund was January 3, 2000.
(2) The Russell 2000 Index is considered representative of the broad U.S.
market of small-capitalization stocks.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
4
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY CRT FUND*
AN INTERVIEW WITH MARY CLARE BLAND, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT FACTORS INFLUENCED THE INVESTMENT ENVIRONMENT FOR INTERNATIONAL STOCKS
DURING THE FIRST HALF OF 2000?
A. During the first six months of the year, international stock markets mirrored
the general performance of the U.S. markets. After a strong beginning to the
year, when growth stocks staged a powerful rally, markets corrected sharply
in March and April, as concerns about rising interest rates and inflation in
the U.S. fueled significant market volatility and sparked a powerful
technology stock sell-off worldwide. Against this backdrop, economic growth
in Europe strengthened during this period, despite weakness in the euro and a
series of interest rate hikes imposed by the European Central Bank, which
sought to contain inflation below 2%--the European Union's self-imposed
limit. Corporate restructuring and merger and acquisition activity continued
at a record-breaking pace, which should improve the outlook for corporate
profits and provide positive news for European markets going forward.
Despite many signs of improvement, the long-awaited economic upturn in Japan
failed to take a firm hold during the first half of 2000. A growing budget
deficit and a lackluster economy held back most equities, as investors shied
away from technology stocks on fears that valuations were too high and profit
expectations would not be met. Elsewhere in Asia and in Latin America,
markets fared better as economies improved and structural reforms were
implemented.
Q. GIVEN THIS CONTEXT, HOW DID THE FUND PERFORM?
A. For the six-month period ended June 30, 2000, the Fund returned -4.90% for
Institutional Class Shares.(1) For the same period, the Lipper International
Fund Index(2) returned -4.11%, and the MSCI EAFE Index(3) returned -3.95%.
Q. WHAT ACCOUNTED FOR THE FUND'S PERFORMANCE DURING THE PERIOD?
A. The Fund's overweighting in the technology sector hampered performance during
the first six months of the year, as telecommunications and Internet
companies fell sharply out of favor in markets around the world. The Fund's
overweight in Japan also hurt its performance relative to its benchmark.
After last year's strong gains, Japan experienced a dramatic sell off in the
technology sector. Weakness in the euro also put a drag on the Fund's
results, lowering the performance of the Fund's European holdings in dollar
terms.
On a positive note, several of the Fund's holdings contributed favorably to
performance during the period. French telecommunications equipment
manufacturer Alcatel, the ninth largest holding in the Fund, was up 50.7% for
the first half of the year. Nokia, the Finnish mobile handset manufacturer
and the second largest holding in the Fund, continued to be a winner. The
stock was up 18.8% for the period.
Q. HOW DID THE FUND'S PORTFOLIO COMPOSITION CHANGE DURING THE PERIOD?
A. We trimmed our weighting in Europe and Asia slightly during the first half of
the year and increased the Fund's exposure to Japan. This was based on the
attractive valuations and considerable long-term growth potential we believe
is evident there. Capital spending, particularly for technology, and
corporate profits are gaining strength, as deregulation and restructuring
efforts have already yielded an increase in direct foreign investment.
5
<PAGE>
On a sector basis, the Fund continued to be overweighted in
telecommunications services, underweighted in consumer goods, and neutral in
the energy and financial services sectors.
Q. WHAT IS YOUR STRATEGIC OUTLOOK GOING FORWARD?
A. Despite market volatility, we remain positive about the outlook for non-U.S.
stocks and expect further economic recovery to boost international markets in
the months ahead. European economic activity continues to accelerate through
much of the region and inflation remains low. This should improve the outlook
for corporate earnings growth, as should continued deregulation and corporate
restructuring. However, the threat of continued volatility will necessitate
careful monitoring of our positions in the months ahead.
We continue to be optimistic about the long-term outlook for Japan. Rising
employment, healthy consumer spending and further restructuring should lead
to continued improvement in the Japanese market. However, we are increasingly
concerned about the short-term outlook as the Bank of Japan becomes more
inclined to move away from its zero interest rate policy. As a result, we are
trimming our Japanese positions back to market weight for the immediate
future. We intend to increase the Fund's weighting in Europe accordingly.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
TRAILING TRAILING TRAILING AGGREGATE
CURRENT TRAILING YEAR 12 3 YEARS 5 YEARS TOTAL
PERIOD ENDED JUNE 30, 2000 MONTH 3 MONTHS TO DATE MONTHS ANNUALIZED ANNUALIZED RETURN
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON INT'L EQUITY CRT
FUND (INSTITUTIONAL SHARES) 2.48% -7.49% -4.90% N/A% N/A% N/A% -4.90%
LIPPER INTERNATIONAL FUND
INDEX 4.63% -4.70% -4.11% 23.63% 11.91% 14.43% -4.11%
MSCI EAFE INDEX 3.93% -3.90% -3.95% 17.46% 10.48% 11.63% -3.95%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
* International investing involves increased risk and volatility
(1) Total return figures include change in share price, reinvestment of
dividends and capital gains. Investment return and principal value will
fluctuate, so that an investor's share, when redeemed, may be worth more
or less than the original cost. Past performance is no guarantee of
future results. The Advisor has agreed to limit the expenses of the Fund
to 1.22% of its average daily net assets. The Advisor will waive
management fees and, if necessary, reimburse expenses of the Fund to the
extent that total annual operating expenses are greater than 1.22% of its
average daily net assets. Management reserves the right to implement and
discontinue expense limitations at any time. Inception date for this Fund
was January 3, 2000.
(2) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
(3) The MSCI EAFE Index is considered representative of the equity markets in
Europe, Australia, Asia and the Far East.
6
<PAGE>
BNY HAMILTON LARGE CAP GROWTH CRT FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS--92.6%
BEVERAGES, FOOD AND TOBACCO--3.6%
4,000 Bestfoods............................... $ 277,000
3,625 Coca-Cola Co............................ 208,211
------------
485,211
------------
BIOSCIENCES--3.0%
1,700 Amgen, Inc.*............................ 119,425
1,725 Biogen, Inc.*........................... 111,262
1,025 Genentech, Inc.*........................ 176,300
------------
406,987
------------
CHEMICALS--1.4%
4,300 duPont (E.I.) de
Nemours & Co............................ 188,125
------------
COMMUNICATIONS EQUIPMENT AND SYSTEMS--2.6%
7,050 Nokia Corp. ADR......................... 352,059
------------
COMMUNICATIONS, MEDIA AND ENTERTAINMENT--1.8%
3,275 Time Warner, Inc........................ 248,900
------------
COMPUTER SERVICES--0.6%
1,400 America Online, Inc.*................... 73,850
------------
COMPUTERS--MICRO--3.3%
4,900 Sun Microsystems, Inc.*................. 445,594
------------
COMPUTERS--SOFTWARE AND
PERIPHERALS--12.3%
6,950 Cisco Systems, Inc.*.................... 441,759
6,700 EMC Corp.*.............................. 515,481
6,650 Metromedia Fiber Network, Inc.*......... 263,922
5,400 Microsoft Corp.*........................ 432,000
------------
1,653,162
------------
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONGLOMERATES--3.0%
7,625 General Electric Co..................... $ 404,125
------------
CONTAINERS AND PACKAGING--2.1%
5,400 Sealed Air Corp.*....................... 282,825
------------
ELECTRONIC EQUIPMENT AND COMPONENTS--6.0%
3,550 Applied Materials, Inc.*................ 321,719
3,600 Intel Corp.............................. 481,275
------------
802,994
------------
FINANCIAL SERVICES--9.1%
7,837 Charles Schwab Corp. (The).............. 263,519
6,025 Citigroup, Inc.......................... 363,006
4,950 Fannie Mae.............................. 258,328
4,175 Morgan Stanley Dean
Witter & Co............................. 347,569
------------
1,232,422
------------
HEALTH CARE PRODUCTS AND
SERVICES--4.6%
3,375 Johnson & Johnson....................... 343,828
5,625 Medtronic, Inc.......................... 280,195
------------
624,023
------------
HOUSEHOLD AND PERSONAL CARE PRODUCTS--4.1%
4,000 Colgate-Palmolive Co.................... 239,500
2,600 Gillette Co............................. 90,837
4,000 Procter & Gamble Co..................... 229,000
------------
559,337
------------
INSURANCE--3.0%
3,450 American International Group, Inc....... 405,375
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
BNY HAMILTON LARGE CAP GROWTH CRT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
OIL & GAS--6.4%
3,000 BP Amoco PLC ADR........................ $ 169,687
4,350 Exxon Mobil Corp........................ 341,475
4,750 Schlumberger Ltd........................ 354,469
------------
865,631
------------
PHARMACEUTICALS--6.7%
5,000 Bristol-Myers Squibb Co................. 291,250
2,825 Merck & Co., Inc........................ 216,466
8,150 Pfizer, Inc............................. 391,200
------------
898,916
------------
REAL ESTATE INVESTMENT TRUSTS--1.0%
6,000 Duke-Weeks Realty Corp.................. 134,250
------------
RESORTS & ENTERTAINMENT--1.8%
6,225 Walt Disney Co. (The)................... 241,608
------------
TELECOMMUNICATIONS--13.2%
1,850 Corning, Inc............................ 499,269
4,400 Global Crossing Ltd.*................... 115,775
5,300 Lucent Technologies, Inc................ 314,025
5,300 NEXTLINK Communications, Inc.,
Class A*................................ 201,069
4,550 Nortel Networks Corp.................... 310,538
7,500 WorldCom, Inc.*......................... 344,063
------------
1,784,739
------------
UTILITIES--GAS & ELECTRIC--3.0%
6,300 Enron Corp.............................. 406,350
------------
TOTAL COMMON STOCKS
(Cost $11,010,082)...................... 12,496,483
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<C> <S> <C>
MONEY MARKET FUND--7.2%
$368,977 ACM Institutional Reserves (Government
Portfolio), 6.31%(a).................... $ 368,977
604,409 ACM Institutional Reserves (Prime
Portfolio), 6.52%(a).................... 604,409
------------
TOTAL MONEY MARKET FUND
(Cost $973,386)......................... 973,386
------------
TOTAL INVESTMENTS
(Cost $11,983,468)(b)--99.8%............ 13,469,869
Other assets less
liabilities--0.2%....................... 26,161
------------
NET ASSETS--100.0%...................... $ 13,496,030
============
</TABLE>
ADR AMERICAN DEPOSITARY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED APPRECIATION WAS $1,486,401
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $1,862,124 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $375,723.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
BNY HAMILTON LARGE CAP GROWTH CRT FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Cost $11,983,468).......................................................... $ 13,469,869
Cash.......................................................................... 3
Receivables:
Due from Advisor............................................................ 25,760
Interest.................................................................... 5,402
Dividends................................................................... 3,804
Other assets.................................................................. 13,902
--------------
TOTAL ASSETS................................................................ 13,518,740
--------------
LIABILITIES:
Payables:
Services provided by the Bank of New York and Administrator................. 11,933
Investments purchased....................................................... 405
Accrued expenses and other liabilities........................................ 10,372
--------------
TOTAL LIABILITIES........................................................... 22,710
--------------
NET ASSETS:..................................................................... $ 13,496,030
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 1,161
Capital surplus............................................................... 12,008,850
Overdistributed net investment income......................................... (370)
Accumulated net realized loss on investments.................................. (12)
Net unrealized appreciation on investments.................................... 1,486,401
--------------
NET ASSETS...................................................................... $ 13,496,030
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 13,496,030
==============
Shares outstanding............................................................ 1,160,900
==============
Net asset value, offering price and repurchase price per share................ $ 11.63
==============
Institutional Shares authorized at @.001 par value.............................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD JANUARY 3, 2000* THROUGH
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 30,044
Dividends (net of foreign withholding taxes of $122).......................... 24,346
--------------
TOTAL INCOME................................................................ 54,390
--------------
EXPENSES:
Advisory...................................................................... 24,596
Administration................................................................ 8,198
Accounting services........................................................... 29,504
Transfer agent................................................................ 6,120
Directors..................................................................... 4,264
Custodian..................................................................... 3,131
Reports to shareholders....................................................... 3,113
Audit......................................................................... 1,555
Insurance..................................................................... 1,483
Registration and filings...................................................... 492
Cash management............................................................... 293
Legal......................................................................... 100
Other......................................................................... 853
--------------
TOTAL EXPENSES.............................................................. 83,702
Fees waived by the Bank of New York (Note 3).................................. (50,356)
Earnings credit adjustment (Note 3)........................................... (552)
--------------
NET EXPENSES................................................................ 32,794
--------------
NET INVESTMENT INCOME....................................................... 21,596
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on:
Investments................................................................. (12)
Net unrealized appreciation on investments.................................... 1,486,401
--------------
Net realized and unrealized gain on investments............................... 1,486,389
--------------
Net increase in net assets resulting from operations.......................... $ 1,507,985
==============
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
BNY HAMILTON LARGE CAP GROWTH CRT FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
JANUARY 3, 2000*
THROUGH
JUNE 30, 2000
(UNAUDITED)
-----------------------
<S> <C>
OPERATIONS:
Net investment income......................................................... $ 21,596
Net realized loss on investments.............................................. (12)
Increase in unrealized appreciation on investments during the period.......... 1,486,401
-----------
Net increase in net assets resulting from operations........................ 1,507,985
-----------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income.......................................... (21,966)
-----------
(21,966)
-----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold.............................................. 12,331,354
Proceeds from shares issued on reinvestment of dividends...................... 7,965
Cost of capital stock repurchased............................................. (329,308)
-----------
Net increase in net assets resulting from capital stock transactions........ 12,010,011
-----------
INCREASE IN NET ASSETS.................................................... 13,496,030
-----------
NET ASSETS:
Beginning of period........................................................... 0
-----------
End of period (includes overdistributed net investment income of $370 at
June 30, 2000).............................................................. $13,496,030
===========
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares............................................. 1,190,305
Shares issued on reinvestment of dividends: Institutional Shares.............. 693
Shares repurchased: Institutional Shares...................................... (30,098)
-----------
Net increase................................................................ 1,160,900
Shares outstanding, beginning of period....................................... 0
-----------
Shares outstanding, end of period............................................. 1,160,900
===========
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
BNY HAMILTON LARGE CAP GROWTH CRT FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
JANUARY 3, 2000*
THROUGH JUNE 30, 2000
(UNAUDITED)
----------------------
<S> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.03
Net realized and unrealized gain on
investments........................... 1.62
-------
Total from investment operations...... 1.65
-------
DIVIDENDS
Dividends from net investment income.... (0.02)
-------
Net asset value at end of period........ $ 11.63
-------
TOTAL RETURN:........................... 16.55%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's
omitted).............................. $13,496
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.80%***
Expenses, prior to waiver from The
Bank of New York.................... 2.03%***
Net investment income net of waiver
from The Bank of New York........... 0.53%***
Portfolio turnover rate................. 0%
</TABLE>
* COMMENCMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
BNY HAMILTON SMALL CAP GROWTH CRT FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--95.3%
ADVERTISING AND MARKETING
SERVICES--0.3%
500 DoubleClick, Inc.*...................... $ 19,062
-----------
BANK HOLDING COMPANIES--1.7%
1,100 Greater Bay Bancorp..................... 51,425
1,700 UCBH Holdings, Inc...................... 45,369
-----------
96,794
-----------
BANKING--0.7%
900 Wilmington Trust Corp................... 38,475
-----------
BIOSCIENCES--1.7%
1,200 Aurora Biosciences Corp.*............... 81,825
100 Human Genome Sciences, Inc.*............ 13,337
-----------
95,162
-----------
BIOTECHNOLOGY--0.8%
100 Affymetrix, Inc.*....................... 16,512
100 Incyte Pharmaceuticals, Inc.*........... 8,219
200 Millennium Pharmaceuticals, Inc.*....... 22,375
-----------
47,106
-----------
COMMUNICATIONS, MEDIA AND ENTERTAINMENT--0.3%
300 Scholastic Corp.*....................... 18,337
-----------
COMPUTER SERVICES--3.4%
600 Entrust Technologies, Inc.*............. 49,650
1,800 Network Appliance, Inc.*................ 144,900
-----------
194,550
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
COMPUTERS--SOFTWARE AND
PERIPHERALS--21.1%
2,600 Ancor Communications, Inc.*............. $ 92,991
600 Bluestone Software, Inc.*............... 15,412
500 BroadVision, Inc.*...................... 25,406
1,200 Commerce One, Inc.*..................... 54,450
300 Crossroads Systems, Inc.*............... 7,575
600 Digex, Inc.*............................ 40,762
400 Finisar Corp.*.......................... 10,475
1,300 Informatica Corp.*...................... 106,519
900 Mercury Interactive Corp.*.............. 87,075
1,700 Metromedia Fiber Network, Inc.*......... 67,469
1,000 Micromuse, Inc.*........................ 165,484
1,300 Netcentives, Inc.*...................... 24,212
900 Newport Corp............................ 96,637
500 Phone.com, Inc.*........................ 32,562
400 RealNetworks, Inc.*..................... 20,225
1,100 Research in Motion Ltd.*................ 49,775
700 SanDisk Corp.*.......................... 42,831
450 SeaChange International, Inc.*.......... 12,994
1,250 USinternetworking, Inc.*................ 25,547
800 VERITAS Software Corp.*................. 90,412
1,700 Vitria Technology, Inc.*................ 103,912
600 Xircom, Inc.*........................... 28,500
-----------
1,201,225
-----------
DATA PROCESSING SYSTEMS--0.4%
700 MedQuist, Inc.*......................... 23,800
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
BNY HAMILTON SMALL CAP GROWTH CRT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
EDUCATION--3.1%
2,700 Apollo Group, Inc., Class A*............ $ 75,600
1,900 DeVry, Inc.*............................ 50,231
3,000 ITT Educational Services, Inc.*......... 52,687
-----------
178,518
-----------
ELECTRICAL EQUIPMENT--1.0%
900 Gemstar International
Group Ltd.*............................. 55,308
-----------
ELECTRONIC EQUIPMENT AND COMPONENTS--12.4%
700 Applied Micro Circuits Corp.*........... 69,125
2,500 C-COR.net Corp.*........................ 67,500
900 Electro Scientific Industries, Inc.*.... 39,628
600 EMCORE Corp.*........................... 72,000
1,588 Flextronics International Ltd.*......... 109,076
300 II-VI, Inc.*............................ 14,512
1,500 Jabil Circuit, Inc.*.................... 74,438
500 Lattice Semiconductor Corp.*............ 34,563
350 Microchip Technology, Inc.*............. 20,393
800 PLX Technology, Inc.*................... 33,200
200 QLogic Corp.*........................... 13,213
1,200 Sawtek, Inc.*........................... 69,075
1,100 TranSwitch Corp.*....................... 84,906
-----------
701,629
-----------
ELECTRONICS--0.5%
150 PMC - Sierra, Inc.*..................... 26,653
-----------
FINANCIAL SERVICES--0.3%
500 Bank United Corp., Class A.............. 17,594
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FOOD WHOLESALING--0.5%
800 Dean Foods Co........................... $ 25,350
-----------
HEALTH & MEDICAL FACILITIES--0.5%
400 Quest Diagnostics, Inc.*................ 29,900
-----------
HUMAN RESOURCES--1.0%
1,800 Korn/Ferry International*............... 57,038
-----------
INVESTMENT MANAGEMENT--1.1%
500 Legg Mason, Inc......................... 25,000
1,200 Waddell & Reed Financial, Inc........... 39,375
-----------
64,375
-----------
MANUFACTURING--4.9%
900 Kulicke & Soffa Industries,
Inc.*................................... 53,438
400 Maverick Tube Corp.*.................... 11,650
2,700 Scotts Co. (The), Class A*.............. 98,550
900 Waters Corp.*........................... 112,331
-----------
275,969
-----------
MEDIA--3.5%
1,050 Emmis Communications Corp., Class A*.... 43,444
600 Hispanic Broadcasting Corp.*............ 19,875
1,800 Radio One, Inc.*........................ 53,213
3,600 Radio One, Inc., Class D*............... 79,425
-----------
195,957
-----------
MEDICAL CARE AND PRODUCTS--4.0%
2,700 Celgene Corp.*.......................... 158,963
1,100 Cephalon, Inc.*......................... 65,863
-----------
224,826
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
BNY HAMILTON SMALL CAP GROWTH CRT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MEDICAL INSTRUMENTS--0.2%
400 ORATEC Interventions, Inc.*............. $ 13,350
-----------
OIL & GAS--3.6%
250 BJ Services Co.*........................ 15,625
6,700 Grey Wolf, Inc.*........................ 33,500
1,000 Newfield Exploration Co.*............... 39,125
1,200 Patterson Energy, Inc.*................. 34,200
1,200 Stolt Offshore SA*...................... 16,950
1,100 Stone Energy Corp.*..................... 65,725
-----------
205,125
-----------
OIL FIELD SERVICES & EQUIPMENT--4.8%
1,300 Cal Dive International, Inc.*........... 70,444
600 Core Laboratories NV*................... 17,400
1,600 National-Oilwell, Inc.*................. 52,600
2,400 Precision Drilling Corp.*............... 92,700
2,200 Superior Energy Services, Inc.*......... 22,825
800 Varco International, Inc.*.............. 18,600
-----------
274,569
-----------
PHARMACEUTICALS--8.6%
1,200 Alkermes, Inc.*......................... 56,550
800 Alpharma, Inc., Class A................. 49,800
1,000 Andrx Corp.*............................ 63,922
1,150 Jones Pharma, Inc....................... 45,928
1,200 MedImmune, Inc.*........................ 88,800
1,000 Sepracor, Inc.*......................... 120,625
1,200 Shire Pharmaceuticals Group PLC ADR*.... 62,250
-----------
487,875
-----------
PUBLISHING--0.3%
300 Houghton Mifflin Co..................... 14,006
-----------
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RECORDS STORAGE--0.7%
1,200 Iron Mountain, Inc.*.................... $ 40,800
-----------
RETAIL--SPECIALTY STORES--1.8%
1,100 Duane Reade, Inc.*...................... 28,325
400 Tiffany & Co............................ 27,000
1,500 Williams-Sonoma, Inc.*.................. 48,656
-----------
103,981
-----------
RETAILING--2.6%
1,300 BJ's Wholesale Club, Inc.*.............. 42,900
2,100 Linens 'n Things, Inc.*................. 56,963
900 The Children's Place Retail Stores,
Inc.*................................... 18,450
1,200 The Men's Wearhouse, Inc.*.............. 26,775
-----------
145,088
-----------
TELECOMMUNICATIONS--9.3%
1,300 Clearnet Communications, Inc., Class
A*...................................... 36,095
900 Digital Lightwave, Inc.*................ 90,450
500 Efficient Networks, Inc.*............... 36,781
2,800 Motient Corp.*.......................... 43,925
350 Next Level Communications, Inc.*........ 30,013
1,415 NEXTLINK Communications, Inc., Class
A*...................................... 53,682
1,000 Packeteer, Inc.*........................ 29,125
500 Powertel, Inc.*......................... 35,469
1,000 Telaxis Communications Corp.*........... 31,250
800 VoiceStream Wireless Corp.*............. 93,038
900 Western Wireless Corp., Class A*........ 49,050
-----------
528,878
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
BNY HAMILTON SMALL CAP GROWTH CRT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TRANSPORTATION--0.2%
300 Swift Transportation Co., Inc.*......... $ 4,200
800 Werner Enterprises, Inc................. 9,250
-----------
13,450
-----------
TOTAL COMMON STOCKS
(Cost $4,665,971)....................... 5,414,750
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
MONEY MARKET FUND--3.6%
$206,370 ACM Institutional Reserves (Prime
Portfolio), 6.52%(a)
(Cost $206,370)......................... 206,370
-----------
TOTAL INVESTMENTS
(Cost $4,872,341)(b)--98.9%............. 5,621,120
Other assets less liabilities--1.1%..... 64,500
-----------
NET ASSETS--100.0%...................... $ 5,685,620
===========
</TABLE>
ADR AMERICAN DEPOSITARY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 2000.
(b) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED APPRECIATION WAS $748,779 BASED
ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE GROSS
UNREALIZED APPRECIATION OF $1,157,915 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $409,136.
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
BNY HAMILTON SMALL CAP GROWTH CRT FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Cost $4,872,341)........................................................... $ 5,621,120
Cash.......................................................................... 22
Receivables:
Investments sold............................................................ 32,079
Due from Advisor............................................................ 14,166
Interest.................................................................... 782
Dividends................................................................... 377
Other assets.................................................................. 34,679
--------------
TOTAL ASSETS................................................................ 5,703,225
--------------
LIABILITIES:
Payables:
Services provided by the Bank of New York and Administrator................. 10,066
Accrued expenses and other liabilities........................................ 7,539
--------------
TOTAL LIABILITIES........................................................... 17,605
--------------
NET ASSETS:..................................................................... $ 5,685,620
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 469
Capital surplus............................................................... 4,953,516
Accumulated net investment loss............................................... (2,873)
Accumulated net realized loss on investments.................................. (14,271)
Net unrealized appreciation on investments.................................... 748,779
--------------
NET ASSETS...................................................................... $ 5,685,620
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 5,685,620
==============
Shares outstanding............................................................ 469,376
==============
Net asset value, offering price and repurchase price per share................ $ 12.11
==============
Institutional Shares authorized at @.001 par value.............................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD JANUARY 3, 2000* THROUGH
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest...................................................................... $ 14,744
Dividends..................................................................... 1,688
--------------
TOTAL INCOME................................................................ 16,432
--------------
EXPENSES:
Advisory...................................................................... 15,082
Administration................................................................ 4,022
Accounting services........................................................... 29,504
Transfer agent................................................................ 6,186
Custodian..................................................................... 5,436
Directors..................................................................... 4,263
Audit......................................................................... 1,503
Reports to shareholders....................................................... 1,482
Registration and filings...................................................... 492
Insurance..................................................................... 424
Cash management............................................................... 235
Legal......................................................................... 45
Other......................................................................... 730
--------------
TOTAL EXPENSES.............................................................. 69,404
Fees waived by the Bank of New York (Note 3).................................. (49,760)
Earnings credit adjustment (Note 3)........................................... (339)
--------------
NET EXPENSES................................................................ 19,305
--------------
NET INVESTMENT LOSS......................................................... (2,873)
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized loss on:
Investments................................................................. (14,271)
Increase in unrealized appreciation on investments............................ 748,779
--------------
Net realized and unrealized gain on investments............................... 734,508
--------------
Net increase in net assets resulting from operations.......................... $ 731,635
==============
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
BNY HAMILTON SMALL CAP GROWTH CRT FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
JANUARY 3, 2000*
THROUGH
JUNE 30, 2000
(UNAUDITED)
-----------------------
<S> <C>
OPERATIONS:
Net investment loss........................................................... $ (2,873)
Net realized loss on investments.............................................. (14,271)
Increase in unrealized appreciation on investments during the period.......... 748,779
----------
Net increase in net assets resulting from operations........................ 731,635
----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold.............................................. 5,167,825
Cost of capital stock repurchased............................................. (213,840)
----------
Net increase in net assets resulting from capital stock transactions........ 4,953,985
----------
INCREASE IN NET ASSETS.................................................... 5,685,620
NET ASSETS:
Beginning of period........................................................... 0
----------
End of period (includes accumulated net investment loss of $2,873 at June 30,
2000)....................................................................... $5,685,620
==========
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares............................................. 488,680
Shares repurchased: Institutional Shares...................................... (19,304)
----------
Net increase................................................................ 469,376
Shares outstanding, beginning of period....................................... 0
----------
Shares outstanding, end of period............................................. 469,376
==========
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
BNY HAMILTON SMALL CAP GROWTH CRT FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
JANUARY 3, 2000*
THROUGH JUNE 30, 2000
(UNAUDITED)
----------------------
<S> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $10.00
------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... (0.01)
Net realized and unrealized gain on
investments........................... 2.12
------
Total from investment operations...... 2.11
------
Net asset value at end of period........ $12.11
======
TOTAL RETURN:........................... 21.10%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's
omitted).............................. $5,686
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.96%***
Expenses, prior to waiver from The
Bank of New York.................... 3.43%***
Net investment income net of waiver
from The Bank of New York........... (0.14)%***
Portfolio turnover rate................. 15%
</TABLE>
* COMMENCMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY CRT FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS--97.5%
AUSTRALIA--1.7%
2,700 Lend Lease Corp. Ltd.................... $ 34,541
1,000 Macquarie Bank Ltd...................... 15,658
-----------
50,199
-----------
BELGIUM--0.6%
555 Fortis (B).............................. 16,214
-----------
DENMARK--0.1%
30 Tele Danmark AS......................... 2,028
-----------
FINLAND--4.3%
1,760 Nokia Oyj............................... 90,168
1,711 Nordic Baltic Holding AB FDR............ 12,497
390 Sonera Oyj.............................. 17,850
178 Tietoenator Oyj......................... 5,963
-----------
126,478
-----------
FRANCE--14.2%
550 Alcatel................................. 36,217
62 Atos SA*................................ 5,824
225 Aventis SA.............................. 16,487
130 Axa..................................... 20,560
129 Banque Nationale de Paris............... 12,464
26 Bouygues SA............................. 17,445
45 Canal Plus.............................. 7,591
312 Carrefour Supermarche SA................ 21,412
80 Compagnie de Saint-Gobain............... 10,858
270 Credit Lyonnais SA...................... 12,888
190 France Telecom SA....................... 26,662
5 L'Oreal SA.............................. 4,347
86 Legrand SA.............................. 19,371
30 LVMH (Louis Vuitton Moet Hennessy)...... 12,419
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
90 Pinault-Printemps-Redoute SA............ $ 20,074
63 PSA Peugeot Citroen..................... 12,693
147 Rexel SA................................ 11,342
221 Schneider Electric SA................... 15,463
258 STMicroelectronics NV................... 16,321
58 Suez Lyonnaise des Eaux SA.............. 10,201
328 Total Fina Elf, B Shares................ 50,491
377 Valeo SA................................ 20,236
391 Vivendi SA.............................. 34,648
-----------
416,014
-----------
GERMANY--6.7%
106 Allianz AG.............................. 37,826
549 BASF AG................................. 22,364
306 Bayerische Hypo - und Vereinsbank AG.... 20,091
982 Bayerische Motoren Werke (BMW) AG....... 29,790
138 SAP AG.................................. 25,899
314 Siemens AG.............................. 47,192
241 Veba AG................................. 11,665
-----------
194,827
-----------
HONG KONG--2.4%
1,000 Cheung Kong (Holdings) Ltd.............. 11,064
2,000 China Mobile (Hong Kong) Ltd.*.......... 17,639
1,200 HSBC Holdings PLC....................... 13,701
2,100 Hutchison Whampoa Ltd................... 26,400
-----------
68,804
-----------
IRELAND--0.6%
868 CRH PLC................................. 15,766
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY CRT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ITALY--3.8%
1,245 ENI SpA................................. $ 7,220
1,450 San Paolo - IMI SpA..................... 25,837
3,875 Telecom Italia Mobile SpA............... 39,742
2,815 Telecom Italia SpA...................... 38,854
-----------
111,653
-----------
JAPAN--26.4%
1,000 Canon, Inc.............................. 49,903
2,000 Daiwa Securities Group, Inc............. 26,464
300 FamilyMart Co. Ltd...................... 11,568
300 Fanuc Ltd............................... 30,594
100 Fast Retailing Co. Ltd.................. 41,964
1,000 Fujitsu Ltd............................. 34,686
2,000 Industrial Bank of Japan Ltd............ 15,198
1,000 KAO Corp................................ 30,622
400 Konami Co. Ltd.......................... 25,330
200 Mabuchi Motor Co. Ltd................... 25,897
3,000 Mitusi & Co. Ltd........................ 22,967
9,000 Nippon Steel Corp....................... 18,969
2 Nippon Telegraph & Telephone Corp....... 26,653
1,000 Nitto Denko Corp........................ 38,656
1,000 Nomura Securities Co. Ltd............... 24,526
1 NTT Data Corp........................... 10,302
1 NTT DoCoMo, Inc......................... 27,125
100 Rohm Co. Ltd............................ 29,299
2,000 Sakura Bank Ltd......................... 13,856
1,000 Shin-Etsu Chemical Co. Ltd.............. 50,848
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
400 Sony Corp............................... $ 37,427
1,000 Takeda Chemical Industries Ltd.......... 65,781
1,000 Tokyo Broadcasting System, Inc.......... 43,287
1,000 Toyota Motor Corp....................... 45,650
1,000 Yamato Transport Co. Ltd................ 24,904
-----------
772,476
-----------
NETHERLANDS--9.3%
400 Aegon NV................................ 14,289
678 Akzo Nobel NV........................... 28,919
588 CMG PLC................................. 8,341
564 Fortis (NL) NV.......................... 16,483
705 Getronics NV............................ 10,913
337 ING Groep NV............................ 22,869
440 KPN NV.................................. 19,758
300 Numico NV............................... 14,291
400 Philips Electronics NV.................. 18,940
1,184 Royal Dutch Petroleum Co................ 73,879
150 Unilever NV............................. 6,908
430 VNU NV.................................. 22,297
520 Wolters Kluwer NV....................... 13,906
-----------
271,793
-----------
SINGAPORE--0.4%
1,000 DBS Group Holdings Ltd.................. 12,840
-----------
SPAIN--3.1%
1,750 Banco Bilbao Vizcaya Argentaria SA*..... 26,251
2,000 Banco Santander Central Hispano SA...... 21,183
370 Centros Comerciales Pryca SA............ 5,316
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY CRT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
1,792 Telefonica SA*.......................... $ 38,647
-----------
91,397
-----------
SWEDEN--3.6%
922 Skandia Forsakrings AB.................. 24,493
4,080 Ericsson AB, B Shares................... 81,172
-----------
105,665
-----------
SWITZERLAND--4.1%
33 Adecco SA............................... 28,127
3 Givaudan*............................... 916
11 Nestle SA............................... 22,087
25 Novartis AG............................. 39,727
3 Roche Holding AG........................ 29,297
-----------
120,154
-----------
UNITED KINGDOM--16.2%
1,100 Bank of Scotland........................ 10,282
795 Barclays PLC............................ 19,737
5,675 BP PLC.................................. 54,465
3,000 British Telecommunications PLC.......... 38,783
530 Cable & Wireless PLC.................... 9,002
253 COLT Telecom Group PLC*................. 8,406
1,500 Compass Group PLC....................... 19,789
4,572 Dixons Group PLC........................ 18,617
211 Energis PLC*............................ 7,915
1,635 Glaxo Wellcome PLC...................... 47,644
1,168 HSBC Holdings PLC....................... 13,367
<CAPTION>
NUMBER OF
SHARES US$ VALUE
--------- -----------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
3,340 Invensys PLC............................ $ 12,526
1,690 Kingfisher PLC.......................... 15,350
2,564 Lloyds TSB Group PLC.................... 24,297
805 Pearson PLC............................. 25,286
469 SEMA Group PLC.......................... 6,596
1,746 SmithKline Beecham PLC.................. 22,942
2,500 Telewest Communications PLC*............ 8,619
5,000 Tesco PLC............................... 15,535
23,608 Vodafone AirTouch PLC................... 95,776
-----------
474,934
-----------
TOTAL COMMON STOCKS
(Cost $2,918,144)....................... 2,851,242
-----------
</TABLE>
<TABLE>
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $2,918,144)(a)--97.5%............. 2,851,242
Other assets less
liabilities--2.5%....................... 74,583
------------
NET ASSETS--100.0%...................... $ 2,925,825
============
</TABLE>
FDR FINNISH DEPOSITARY RECEIPT
* NON-INCOME PRODUCING SECURITY.
(a) THE COST STATED ALSO APPROXIMATES THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 2000, NET UNREALIZED DEPRECIATION WAS $66,902 BASED
ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE GROSS
UNREALIZED APPRECIATION OF $203,691 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $270,593.
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY CRT FUND
INDUSTRY DIVERSIFICATION
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF
TOTAL
US$ VALUE NET ASSETS
---------- ----------
<S> <C> <C>
Automotive.............................. $ 78,579 2.7%
Bank Holding Companies.................. 39,565 1.4
Banking................................. 213,393 7.3
Banks--Money Center..................... 74,848 2.6
Brokerage Services...................... 26,464 0.9
Building Materials...................... 57,246 2.0
Chemicals--Diversified.................. 102,131 3.5
Computer Services....................... 25,078 0.9
Computers--Software & Peripherals....... 158,679 5.4
Conglomerates........................... 61,048 2.1
Consumer Products....................... 12,419 0.4
Consumer Staples........................ 4,347 0.1
Cosmetics and Toiletries................ 916 0.0
Electrical Equipment.................... 26,805 0.9
Electrical and Electronic Equipment..... 12,526 0.4
Electronic Equipment & Components....... 177,849 6.1
Electronics............................. 38,656 1.3
Energy.................................. 50,491 1.7
Financial Services...................... 83,364 2.8
Financial Services--Diversified......... 32,697 1.1
Food & Beverages........................ 48,784 1.7
Food Products........................... 29,826 1.0
Health Care Products and Services....... 65,781 2.2
Healthcare.............................. 22,942 0.8
Human Resources......................... 28,127 1.0
Industrial Distribution................. 22,967 0.8
Insurance............................... 62,319 2.1
Insurance--Health, Life & Multi--Line... 14,289 0.5
Insurance--Multi--Line.................. 20,560 0.7
Manufacturing--Miscellaneous............ 17,445 0.6
Media................................... 84,783 2.9
Medical Care & Products................. 16,487 0.6
Oil and Gas............................. 92,764 3.2
Oil..................................... 54,465 1.9
Pharmaceuticals......................... 87,371 3.0
Publishing.............................. 83,395 2.9
Real Estate Development................. 11,064 0.4
Retail--Department Stores............... 35,424 1.2
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY CRT FUND
INDUSTRY DIVERSIFICATION (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF
TOTAL
US$ VALUE NET ASSETS
---------- ----------
<S> <C> <C>
Retail--Food Stores..................... $ 21,412 0.7%
Retail--General Merchandise............. 11,568 0.4
Retail--Specialty Stores................ 47,280 1.6
Retailing............................... 18,617 0.6
Steel................................... 18,969 0.6
Telecommunications...................... 546,468 18.7
Telecommunications-Non-U.S.............. 17,639 0.6
Transportation Services................. 24,904 0.9
Utilities--Telecommunications........... 17,408 0.6
Utilities--Water........................ 40,882 1.4
Water Projects.......................... 10,201 0.3
---------- --------
Total Value of Investments.............. 2,851,242 97.5
Other assets less liabilities........... 74,583 2.5
---------- --------
Net Assets.............................. $2,925,825 100.0%
========== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY CRT FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at value,
(Cost $2,918,144)........................................................... $ 2,851,242
Foreign currency, at value (Cost $1,115)...................................... 1,120
Cash.......................................................................... 26,998
Receivables:
Due from Advisor............................................................ 51,155
Dividends................................................................... 3,784
Other assets.................................................................. 13,874
--------------
TOTAL ASSETS................................................................ 2,948,173
--------------
LIABILITIES:
Payables:
Services provided by the Bank of New York and Administrator................. 14,013
Accrued expenses and other liabilities........................................ 8,335
--------------
TOTAL LIABILITIES........................................................... 22,348
--------------
NET ASSETS:..................................................................... $ 2,925,825
==============
SOURCES OF NET ASSETS:
Capital stock @ par........................................................... $ 308
Capital surplus............................................................... 3,073,013
Undistributed net investment income........................................... 7,048
Accumulated net realized loss on investments and foreign transactions......... (87,676)
Net unrealized depreciation on investments.................................... (66,902)
Net unrealized appreciation on foreign currency denominated assets and
liabilities................................................................. 34
--------------
NET ASSETS...................................................................... $ 2,925,825
==============
INSTITUTIONAL SHARES:
Net assets.................................................................... $ 2,925,825
==============
Shares outstanding............................................................ 307,766
==============
Net asset value, offering price and repurchase price per share................ $ 9.51
==============
Institutional Shares authorized @ $.001 par value............................... 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD JANUARY 3, 2000* THROUGH
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $2,846)........................ $ 19,751
Interest...................................................................... 4,953
--------------
24,704
--------------
EXPENSES:
Advisory...................................................................... 12,301
Administration................................................................ 2,894
Accounting services........................................................... 38,353
Transfer agent................................................................ 6,120
Custodian..................................................................... 5,541
Directors..................................................................... 4,264
Audit......................................................................... 1,503
Reports to shareholders....................................................... 1,480
Registration and filings...................................................... 492
Insurance..................................................................... 425
Cash Management............................................................... 150
Legal......................................................................... 45
Other......................................................................... 1,394
--------------
TOTAL EXPENSES.............................................................. 74,962
Fees waived by the Bank of New York........................................... (57,306)
--------------
NET EXPENSES................................................................ 17,656
--------------
NET INVESTMENT INCOME....................................................... 7,048
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on:
Investments................................................................. (63,220)
Foreign currency transactions............................................... (24,456)
--------------
Net realized loss on investments and foreign currency transactions............ (87,676)
--------------
Increase (decrease) in unrealized depreciation on:
Investments................................................................. (66,902)
Foreign currency............................................................ 34
--------------
Net unrealized depreciation on investments and foreign currency denominated
assets and liabilities during the period.................................... (66,868)
--------------
Net realized and unrealized loss on investments and foreign currency
transactions................................................................ (154,544)
--------------
Net decrease in net assets resulting from operations.......................... $ (147,496)
==============
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY CRT FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
JANUARY 3, 2000*
THROUGH
JUNE 30, 2000
(UNAUDITED)
-----------------------
<S> <C>
OPERATIONS:
Net investment income......................................................... $ 7,048
Net realized loss on investments and foreign currency transactions............ (87,676)
Increase in unrealized depreciation on investments and foreign currency
denominated assets and liabilities during the period........................ (66,868)
----------
Net decrease in net assets resulting from operations........................ (147,496)
----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold.............................................. 3,189,663
Cost of capital stock repurchased............................................. (116,342)
----------
Increase in net assets resulting from capital stock transactions............ 3,073,321
----------
INCREASE IN NET ASSETS.................................................... 2,925,825
NET ASSETS:
Beginning of period........................................................... -0-
----------
End of period (includes undistributed net investment income of $7,048 at
June 30, 2000).............................................................. $2,925,825
==========
CHANGES IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares............................................. 319,439
Shares repurchased: Institutional Shares...................................... (11,673)
----------
Net increase................................................................ 307,766
Shares outstanding, beginning of period....................................... -0-
----------
Shares outstanding, end of period............................................. 307,766
==========
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY CRT FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
JANUARY 3, 2000*
THROUGH JUNE 30, 2000
(UNAUDITED)
----------------------
<S> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.02
Net realized and unrealized loss on
investments........................... (0.51)
-------
Total from investment operations...... (0.49)
-------
Net asset value at end of period........ $ 9.51
=======
TOTAL RETURN:........................... (4.20)%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's
omitted).............................. $ 2,926
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 1.22%***
Expenses, prior to waiver from The
Bank of New York.................... 5.18%***
Net investment income net of waiver
from The Bank of New York........... 0.49%***
Portfolio turnover rate................. 6%
</TABLE>
* COMMENCMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
BNY Hamilton Funds, Inc. (the "Company") was organized as a Maryland
Corporation on May 1, 1992 and is registered under the Investment Company Act of
1940 as an open-end management investment company. The BNY Hamilton Equity CRT
Funds (the "Funds") consists of three series: BNY Hamilton Large Cap Growth CRT
Fund ("Large Cap Growth CRT Fund"), BNY Hamilton Small Cap Growth CRT Fund
("Small Cap Growth CRT Fund"), and BNY Hamilton International Equity CRT Fund
("International Equity CRT Fund").
2. SIGNIFICANT ACCOUNTING POLICIES
(A) SECURITY VALUATIONS
Securities listed on a domestic securities exchange, including options on
stock indexes, are valued based on the last sale price as of the close of
regular trading hours on the New York Stock Exchange or, in the absence of
recorded sales, at the average of readily available closing bid and asked prices
on such exchange. Securities listed on a foreign exchange are valued at the last
quoted sale price at the close of the primary exchange. Unlisted securities
traded only on the over-the-counter market are valued at the average of the
quoted bid and the asked prices on the over-the-counter market.
The market value of a written call option or a purchased put option is the
last reported sale price on the principal exchange on which such option is
traded or, if no sales are reported, the average between the last reported bid
and asked prices.
The determination of the value of certain portfolio debt securities, other
than temporary investments in short-term securities, take into account various
factors affecting market value, including yields and prices of comparable
securities, indications as to value from dealers and general market conditions.
Short-term securities with a remaining maturity of 60 days or less are valued
at amortized cost which approximates fair value. This method values a security
at its cost at the time of purchase and thereafter assumes a constant rate of
amortization to maturity of any discount or premium.
Securities for which market quotations are not readily available, including
investments that are subject to limitations as to their sale (such as certain
restricted securities and illiquid securities), are valued at fair value as
determined in good faith by the Board of Directors. In determining fair value,
consideration is given to cost, operating and other financial data.
(B) CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies are translated into
U.S. dollars at the mean of the bid and asked price of the respective exchange
rate on the last day of the period. Purchases and sales of investments
denominated in foreign currencies are translated at the exchange rate on the
date of the transaction.
Foreign exchange gain or loss resulting from the sale of an investment,
holding of a foreign currency, expiration of a foreign currency exchange
contract, difference in
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
exchange rates between the trade date and settlement date of an investment
purchased or sold, and the difference between dividends actually received
compared to the amount shown in a Fund's accounting records on the date of
receipt are shown as net realized gains or losses in the respective Fund's
statement of operations.
Foreign exchange gain or loss on assets and liabilities other than investments
currently shown on the respective Fund's statement of assets and liabilities are
shown as unrealized appreciation (depreciation) on foreign currency
transactions.
(C) REPURCHASE AGREEMENTS
A Fund's custodian or designated sub-custodians, as the case may be for
tri-party repurchase agreements, takes possession of the collateral pledged for
investments in repurchase agreements. The underlying collateral is valued daily
on a mark-to-market basis to ensure that the value, including accrued interest,
is at least equal to the repurchase price. In the event of default of the
obligation to repurchase, a Fund has the right to liquidate the collateral and
apply the proceeds in satisfaction of the obligations. Under certain
circumstances, 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.
(D) WRITTEN OPTIONS AND PURCHASED OPTIONS
All Funds may enter into an option contracts for the purpose of either hedging
its exposure to the market fluctuations of the portfolio, or an individual
security position. The nature and risks associated with these securities are
explained further in the Prospectus and Statement of Additional Information.
When a Fund writes an option, it will receive a premium. Premiums received are
recorded as liabilities and adjusted to current market value daily. When an
option is purchased, the Fund will pay a premium. Premiums paid for options are
included as investments and are also adjusted to their current market value
daily.
If a written option expires, the premium received by the Fund will be treated
as a short term capital gain. Likewise, premiums paid for purchased put options
that expire unexercised will be treated as short term capital losses. In
addition, short term capital gains or losses may be realized on exercised
written calls or purchased puts depending on the premiums received or paid and
the strike price of the underlying securities.
As a writer of call options, a Fund does not have control over exercising of
such options. As a result, that Fund bears unlimited market risk of favorable
changes in the value of the call option's underlying securities. The Fund also
bears unlimited market risk in the value of the written call option itself.
If an option which a Fund has purchased expires on its stipulated expiration
date, it realizes a loss in the amount of the cost of the option. If it enters
into a closing transaction, it realizes a gain or loss, depending on whether the
proceeds from the sale are
28
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
greater or less than the cost of the option. If the Fund exercises a put option,
it realizes a gain or loss from the sale of the underlying security and the
proceeds from such sale will be decreased by the premium originally paid. If a
Fund exercises a call option, the cost of the security which it purchases upon
exercise will be increased by the premium originally paid.
(E) FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. The
Funds' policy is to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and distribute all of the taxable
and tax-exempt income to the shareholders within the allowable time limits.
Therefore, no federal income tax provision is required.
(F) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Each Fund pays dividends and capital gains distributions, if any, at least
annually, approximately 10 calendar days before month end.
(G) SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are recorded on the trade date. Realized gains and
losses on security transactions are determined using the identified cost method.
Dividend income is recognized on the ex-dividend date and interest income is
accrued daily. Discounts on securities purchased for all Funds are accreted, and
premiums on securities purchased are amortized.
(H) FINANCIAL STATEMENTS PREPARATION
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses for the
period. Actual results could differ from those estimates.
3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES
The Bank of New York acts as the Funds' investment adviser (the "Adviser").
The Adviser manages the investments of the Funds and is responsible for all
purchases and sales of the Funds' portfolio securities. The Adviser's fee
accrues daily and is payable monthly at the following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE
DAILY NET ASSETS
----------------
<S> <C>
Large Cap Growth CRT Fund............... .60%
Small Cap Growth CRT Fund............... .75%
International Equity CRT Fund........... .425%
</TABLE>
The International Equity CRT Fund is also sub-advised by Indocam, formerly
Indosuez International Investment Services (the "Sub-Adviser"), a subsidiary of
Banque Indosuez. The Fund accrues daily an additional fee to the Sub-Adviser,
payable monthly at the rate of .425% of average daily net assets of the
International Equity CRT Fund.
BNY Hamilton Distributors, Inc. (a wholly-owned subsidiary of The BISYS Group,
Inc.)
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
acts as the Funds' administrator (the "Administrator") and will assist in
supervising the operations of the Funds.
The Administrator has agreed to provide facilities, equipment and personnel to
carry out administrative services for the Funds, including, among other things,
providing the services of persons who may be appointed as officers and directors
of the Funds, monitoring the custodian, fund accounting, transfer agency,
administration, distribution, advisory and legal services that are provided to
the Funds. The Administration Agreement permits the Administrator to delegate
certain of responsibilities to other service providers. Pursuant to this
authority, the Administrator had delegated certain administrative functions to
The Bank of New York. The Bank of New York is not an affiliated person of BNY
Hamilton Distributors, Inc.
The Administrator's fee is accrued daily and is payable monthly computed
utilizing the following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE
DAILY NET ASSETS
----------------
<S> <C>
Large Cap Growth CRT Fund............... .20%
Small Cap Growth CRT Fund............... .20%
International Equity CRT Fund........... .20%
</TABLE>
In addition to acting as Administrator, BNY Hamilton Distributors, Inc. is the
principal underwriter and distributor of shares of the Funds.
The Bank of New York serves as the Funds' custodian ("Custodian"). Each Fund
maintains a compensating balance arrangement with the Custodian, whereby a Fund
would have its respective custody fees reduced by income earned on cash balances
maintained with the Custodian. The income earned on cash balances by each Fund
for the period January 3, 2000 (commencement of operations) through June 30,
2000 is shown on its respective Statement of Operations under the caption
"Earnings Credit Adjustment." For the period January 3, 2000 (commencement of
operations) through June 30, 2000, the International Equity CRT Fund did not
earn any such monies.
Since inception, the Bank of New York voluntarily agreed to assume/waive
expenses for the Funds to the extent that each Fund's expense ratio exceeded the
percentage of average daily net assets as shown below:
<TABLE>
<S> <C>
Large Cap Growth CRT Fund............... .80%
Small Cap Growth CRT Fund............... .96%
International Equity CRT Fund........... 1.22%
</TABLE>
Management reserves the right to implement or discontinue expense limitations
at any time.
4. PORTFOLIO SECURITIES
For the period January 3, 2000 (commencement of operations) through June 30,
2000, the cost of securities purchased and the proceeds from sales of
securities, excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
LARGE CAP GROWTH
CRT FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 11,010,094 --
</TABLE>
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
SMALL CAP GROWTH
CRT FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 5,305,671 625,429
<CAPTION>
INTERNATIONAL EQUITY
CRT FUND
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities............................... $ -- $ --
All Others........................................ 3,156,256 174,893
</TABLE>
5. GEOGRAPHIC CONCENTRATION
The International Equity CRT Fund has a relatively large concentration of
portfolio securities invested in companies domiciled in Japan. The International
Equity CRT Fund may be more susceptible to political, social and economic events
adversely affecting Japanese companies than funds not so concentrated.
31
<PAGE>
DIRECTORS AND OFFICERS
Edward L. Gardner, Director and Chairman of the Board
Stephen Stamas, Director
James E. Quinn, Director
Karen Osar, Director
Kim Kelly, Director
William J. Tomko, Chief Executive Officer
Mark A. Dillon, President
Richard Baxt, Vice President
Michael A. Grunewald, Vice President
Nimish Bhatt, Treasurer and Principal Accounting Officer
Lisa M. Hurley, Secretary
Alaina Metz, Assistant Secretary
Manderly Rush, Assistant Secretary
INVESTMENT ADVISER
The Bank of New York
ADMINISTRATOR AND DISTRIBUTOR
BNY Hamilton Distributors, Inc.
TRANSFER AGENT
BISYS Fund Services, Ohio, Inc.
CUSTODIAN
The Bank of New York
INDEPENDENT AUDITORS
Ernst & Young LLP
LEGAL COUNSEL
Sullivan & Cromwell
32
<PAGE>
BNY HAMILTON DISTRIBUTORS, INC., IS THE FUNDS' DISTRIBUTOR AND IS
UNAFFILIATED WITH THE BANK OF NEW YORK, THE INVESTMENT ADVISER.
This report is not authorized for distribution to prospective investors
unless preceded or accompanied by a current prospectus for CRT Shares of BNY
Hamilton Large Cap Growth CRT Fund, BNY Hamilton Small Cap Growth CRT Fund,
and BNY Hamilton International Equity CRT Fund.
For additional prospectuses which contain more complete information,
including charges and expenses, call 1-800-426-9363. Please read the
prospectus carefully before investing or sending money.
Investments in the Funds are not deposits, are neither guaranteed by, nor
obligations of, The Bank of New York and are not insured by the FDIC or any
other governmental agency. Investments in mutual funds involve risks,
including the possible loss of principal.
<PAGE>
BNY
HAMILTON
FUNDS
INVEST WITH A TRUSTED LEADER
90 Park Avenue, 10th Floor
New York, NY 10016
08/00 BNY-0193
